Cosmos Bank aims to have half of its loans be small-sized this year, meeting the RBI’s target.

Cosmos Bank, based in Pune, aims to meet the Reserve Bank of India (RBI)’s target by ensuring that 50% of its loan portfolio consists of loans under Rs 1 crore this fiscal year.

“We plan to meet the RBI’s target of having 50% of our loans under Rs 1 crore in FY 2024-25,” said Milind Kale, Chairman of Cosmos Bank, during a press conference in Mumbai. He added that the bank will utilize its 179 branches to achieve this goal.


Currently, 43% of the bank’s loans are below Rs 1 crore, according to Mr. Kale.

As for expansion, the bank doesn’t plan to focus on acquisitions for now. Since 1999, Cosmos Bank has acquired 18 banks and added 90 branches. This year, it might add 5 to 10 more branches, depending on regulatory approval, Mr. Kale noted.

After facing cyber attacks six years ago, the bank plans to increase its spending on technology to up to 20% of profits or 8-9% of operating expenses in 2024-25. Additionally, it aims to reduce human resource costs through increased automation.

Cosmos Bank expects deposit and credit growth of 15% in FY 2025, similar to the previous year. The bank reported a net profit of Rs 384 crore for FY 2024, surpassing its capital base of Rs 350 crore. Part of the extra profits will be used to give the staff a bonus equivalent to one month’s salary.

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