Expected rebound in export growth will not happen quickly amid U.S. tariff row: CUB MD
CUB has a MSME loan book of almost 50%, he told The Hindu in an interview.
About ₹1,200 crore of the ₹55,000-crore book has exposure to exports. Out of that, ₹200 crore will be focused on U.S. exports, Mr. Kamakodi said.
'MSMEs have been able to survive by diversifying into other markets and also by focusing on the domestic market. The rupee depreciation is also helping them in their exports to other countries and offering them a cushion,' he said.
'Though it is challenging, entrepreneurs would reinvent themselves and bounce back,' Mr. Kamakodi said.
On financial performance, he said the bank faced growth challenges in the financial year 2022-2023 and it stabilised in the financial year 2024-2025.
'We closed the financial year 2024-2025 with 14% credit growth. The same momentum is continuing. We had a credit growth of 16% for the first quarter of 2025-2026, with growth coming from all segments,' Mr. Kamakodi said.
He also said the industry-wise concerns expressed around deposit growth during the same time in the last financial year, has normalised now. The bank's deposits grew 20% in the first quarter of 2025-2026.
Mr. Kamakodi said there is around ₹500 crore incremental growth in Current Account Savings Account (CASA) deposits in the first quarter of 2025-2026 from the fourth quarter of 2024-2025.
He also said the bank is seeing a decline in gross and net non-performing assets (NPA) in the last 8-10 quarters and the trend is expected to continue.
The bank is looking to grow 2-3% more than the industry growth in the current financial year, Mr. Kamakodi said.
As per regulations, Mr. Kamakodi who has been at the helm of the bank for 14 years now, has to step down and hand over the responsibilities to his successor on April 30, 2026.
'The succession planning will kickstart from October. A panel has to send names to the regulator for approval and a final decision would be taken. It will take another 3-4 months,,' Mr. Kamakodi said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
3 hours ago
- Economic Times
Want GST 2.0 to be Good and Simple Tax not Growth Suppressing Tax: Cong
The Congress Saturday demanded an official discussion paper on GST 2.0 soon for a wider debate on it and said the reform should be towards a "Good and Simple Tax" in letter, spirit, and compliance, and not the "Growth Suppressing Tax" it has opposition party's assertion came a day after Prime Minister Narendra Modi announced that GST rates will be lowered by Diwali, bringing down prices of everyday use items, as his government looks to reform the eight-year-old regime that has been plagued by litigation and evasion. Congress general secretary in-charge of communications, Jairam Ramesh, said that for well over a year and a half at least, the party has been calling for a radically transformed GST that a transformed GST 2.0 was a key pledge in the Congress manifesto for the 2024 Lok Sabha elections, Ramesh on Friday said the prime minister seems to have finally woken up to the fact that economic growth will simply not accelerate unless this transformation takes place and increases private consumption and private investment."Over the last seven years, the spirit of GST has been vitiated by an increased number of rates and the granting of multiple exemptions. The structure also seems to have facilitated evasion. There must be a drastic reduction in the number of rates," he said in a statement. The Congress leader said simplification of the rate structure is essential, but must be done in a manner that minimises revenue uncertainty to states and also eliminates the classification disputes that have become so common."The GST compensation cess expires on March 31, 2026. This must be extended to offset any revenue uncertainty from the rationalisation of the rate structure." Ramesh said the widespread concerns of MSMEs -- the major employment generators in the economy -- must be addressed meaningfully, he said, adding that apart from major procedural changes in GST, this will involve further increasing the thresholds that must apply to interstate supplies as issues that have surfaced, for instance, in textiles, tourism, exporters, handicrafts and agricultural inputs, must be tackled, he addition, states should be incentivised to move towards the introduction of state-level GST to cover electricity, alcohol, petroleum, and real estate as well, the Congress leader opined."The Indian National Congress demands an official discussion paper on GST 2.0 very soon so that there can be an informed and wider debate on this vital and pressing national issue."GST 2.0 should be truly a Good and Simple Tax (GST) in letter, spirit, and compliance, not like the Growth Suppressing Tax (GST) it has become," Ramesh after the prime minister's announcement from the ramparts of the Red Fort on the 79th Independence Day, the Union Finance Ministry said it has proposed that most goods and services be taxed in two slabs -- standard and merit -- and a select few items be charged special is to replace the current goods and services tax (GST) structure, where sale of goods and rendering of services are taxed in four different brackets -- 5 per cent, 12 per cent, 18 per cent and 28 per cent -- with luxury and sin goods attracting a levy on top of the highest rate of 28 per cent."This Diwali, I am going to make it a double Diwali for you," Modi had said in his address to the nation. Stating that over the past eight years, his government has undertaken major GST reforms, the prime minister said, "We have discussed with states and we are bringing next-generation GST reforms that will reduce the tax burden across the country." "Tax on items for the common man will be reduced substantially. Our MSMEs will benefit hugely. Daily use items will become cheaper, which will also strengthen our economy," he had said. GST, which subsumed a host of taxes and local levies, was rolled out on July 1, 2017.
News18
a day ago
- News18
India@79: Reimagining Economic Nationalism For A Future-Ready Bharat
The India of tomorrow is one that doesn't depend on global goodwill — it commands global respect As we mark India's 79th year of Independence, the nation stands at a critical inflection point—one where economic nationalism is no longer just a political sentiment, but a powerful strategy to reclaim our place as a global manufacturing, innovation, and supply chain powerhouse. India's journey from being a consumer economy to becoming a creator, builder, and exporter of world-class products is well underway—and at the heart of this transformation are bold policies, digital technologies, and homegrown, innovation-led companies driving structural change. In a world recalibrating supply chains and resetting economic priorities, India's assertive push toward economic self-reliance—backed by initiatives like Make in India, Aatmanirbhar Bharat, PM GatiShakti, and PLI Schemes—signals a new era. This is not protectionism, but purposeful, pragmatic, and progressive economic nationalism—one that strengthens India's domestic capabilities while deeply engaging with global trade and investment ecosystems. From PM GatiShakti's National Master Plan for multi-modal logistics to the National Industrial Corridor Development Programme and National Logistics Policy, India is rewriting the way economies are built—from the ground up. These aren't just infrastructure upgrades—they are economic enablers. Seamless logistics, greenfield smart industrial cities, plug-and-play facilities, and technology-driven platforms like the Unified Logistics Interface Platform (ULIP) are reducing project delays, improving supply chain resilience, and enhancing India's global competitiveness. In this transformation, Parashar Future Technologies and similar tech-led Indian companies are playing a catalytic role. Leveraging AI, automation, and data analytics, we're creating solutions that reduce costs, improve precision, and empower MSMEs to participate in global value chains with confidence and scale. Production-Linked Incentives Perhaps no initiative illustrates India's economic reorientation better than the Production Linked Incentive (PLI) Schemes. Spread across 14 strategic sectors—from electronics and automobiles to pharmaceuticals and white goods—PLI is more than a fiscal tool; it's a confidence statement to the world. With over Rs 1.76 lakh crore in realised investments and more than Rs 16.5 lakh crore in production output, PLI schemes have generated over 12 lakh jobs, revitalised industrial clusters, and drastically reduced import dependence across critical sectors. Consider this: India's mobile phone exports have surged nearly 775 per cent in the last four years, making the country a key global manufacturing hub. Similarly, under the PLI for medical devices, high-end products such as MRI machines, CT scanners, and heart valves are now being made in India. This not only reduces costs and saves foreign exchange but also positions India as a resilient alternative to traditional global suppliers. Smart Nationalism Today, true nationalism lies in building capabilities that serve our people and place India on the global map as a trusted partner. By mandating Quality Control Orders (QCOs), regulating Minimum Import Prices, and decriminalising archaic business regulations through Jan Vishwas, the government is sending a strong message: India is open for business—but on fair, future-ready, and high-quality terms. The growing use of data-driven decision-making, simplified digital platforms like the National Single Window System, and investments in warehousing standards and infrastructure are strengthening the business environment. These moves aren't about isolating India—they're about protecting its interests, unlocking its potential, and amplifying its voice globally. Innovation-Driven Enterprises As a founder deeply embedded in the tech-manufacturing landscape, I see an incredible shift. Indian companies are no longer merely service providers—they're solution architects, product innovators, and global collaborators. We're seeing a surge of science-backed startups, med-tech ventures, and AI-driven manufacturing solutions—all working in sync with national priorities. Tech-enabled and innovation-led enterprises like Parashar Future Technologies are aligning with government initiatives to build IP, create jobs, strengthen MSMEs, and boost exports. The focus is not just on 'Make in India" but 'Design, Engineer, and Innovate in India"—creating a virtuous cycle of growth that benefits every layer of our economy. Nationalist Economy, Global Respect India's economic strategy today is a blend of aspiration, alignment, and agility. Our recent signing of the Supply Chain Resilience Agreement under IPEF, negotiation of strategic FTAs, and expansion of logistics and industrial infrastructure are positioning us as a formidable pillar of the global economy. Importantly, this strategic nationalism is inclusive and forward-looking—with deliberate efforts to enhance ease of doing business, strengthen women's entrepreneurship, and build a skilled, future-ready workforce. The cumulative impact? A nation that is both self-reliant and globally relevant. Political Freedom to Economic Sovereignty As we celebrate India@79, our freedom must now be measured not only by political independence, but by economic sovereignty, innovation-led growth, and the strength of our domestic capabilities. Economic nationalism today is about ensuring that the products we build, the technologies we export, and the opportunities we create serve every Indian—while making the world take note. The India of tomorrow is one that doesn't depend on global goodwill—it commands global respect. By combining visionary policymaking, resilient infrastructure, quality regulation, and the ingenuity of our tech ecosystem, we are building a Viksit Bharat that is homegrown, high-quality, and globally competitive. The message is clear: India is not just rising—it is redesigning the rules. And we, as proud partners in this journey, must innovate, invest, and lead from the front. Dr Pradip Kumar Varma is Member of Parliament, Rajya Sabha. Nagender Parashar is Director & CEO, Parashar Future Technologies. Views expressed in the above piece are personal and solely those of the authors. They do not necessarily reflect News18's views. Click here to add News18 as your preferred news source on Google. view comments Location : New Delhi, India, India First Published: August 15, 2025, 15:13 IST News opinion Opinion | India@79: Reimagining Economic Nationalism For A Future-Ready Bharat Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
a day ago
- Mint
Spooked by Trump tariffs, MSMEs urge govt to roll out export intelligence portal without delay
New Delhi: India's micro, small, and medium enterprises (MSMEs) have urged the government to operationalise without delay the long-pending global market intelligence service (GMIS)— a portal meant to help them identify and tap export opportunities worldwide. GMIS, planned under the union MSME ministry's International Co-operation scheme, was envisioned as a one-stop platform for the country's 66 million MSMEs. However, the system remains non-functional despite being proposed by the ministry's task force in 2021-22. Industry lobby group India SME Forum, representing about 100,000 businesses in the country, has written to cabinet secretary T.V. Somanathan and the MSME ministry seeking immediate implementation of the GMIS portal and expedited creation of trade desks in foreign jurisdictions to facilitate MSME export opportunities. The appeal comes at a time when MSME exporters, who contribute around 45% of India's total exports, face mounting headwinds, including high tariffs imposed by US President Donald Trump. India SME Forum estimates that besides $30 billion worth of MSME exports, 70,000–80,000 jobs are at risk. 'The repercussions are immediate and severe, with over $30 billion in annual business at risk, and MSMEs being disproportionately impacted due to their limited capacity to absorb such external shocks or pivot rapidly to new markets," said the letter dated 9 August. Mint has seen a copy of the letter. Of the total MSMEs in India, only about 173,000 enterprises export their products, according to the forum. This is due to low awareness, lack of accessible market intelligence, and uncertainty around regulations and logistics. 'Many MSMEs simply do not know which products have demand in which countries, what prices prevail, or how to navigate regulatory and logistical requirements," the letter said. A market intelligence system was envisioned by the union MSME ministry's task force to bridge that gap and use data available from the World Bank, the United Nations, and the Indian government to create the GMIS and fund it through the International Co-operation scheme. International cooperation scheme is a demand-driven scheme under which financial assistance is provided on a reimbursement basis to eligible state and central government organisations and registered industry associations, societies, and trusts associated with promoting and developing the MSME sector. Industry associations can participate in three events in a year, and in the same event for three years at a stretch under the scheme. The GMIS would provide information about potential export markets, demand trends, pricing benchmarks, competitive landscapes, logistics networks, and shipping costs, the letter added. Queries sent to the MSME ministry on Wednesday went unanswered till press time. Mint reported on 3 August that the union MSME ministry was reviewing the International Co-operation scheme in the face of a global tariff war. In FY24, the government assisted 545 MSMEs under the International Co-operation scheme with a support of ₹19.22 crore, according to a Lok Sabha disclosure in March 2025. 'While there is no fixed ratio, India's exports in 2023-24 supported approximately 32 million jobs, with an estimated 2.5 to 3 million jobs created for every billion dollars of exports," Vinod Kumar, president, India SME Forum told Mint quoting data from an Exim Bank of India study. Experts say bolstering MSME exports is critical for India's growth. 'Although India's GVC (global value chain) participation has risen over the years, it remains below that of major economies and regional competitors. The government can facilitate process innovation, reduce costs, and improve product management within MSME clusters by prioritising efficient logistics, digital linkages, and smart trade infrastructure," said a NITI Aayog study on the competitiveness of Indian MSMEs. As per the MSME ministry's Udyam portal, India's MSMEs have created about 290 million jobs to date.
