50% growth of OTP Bank's business loan portfolio to make in Agri-Business
The business loan portfolio's 50% growth of OTP Bank is planned in the agricultural sector in 2021. The “OTP Agro Factory” CEO, Ivan Yerko, announced this during the round table "Lending to the agricultural sector: what business funding products banks offer to customers", held online by the "Financial Club".
According to I. Yerko, this year, OTP Bank has set the task to increase the loan portfolio by 50%. "Of course, we cannot grow only in the agricultural sector but have to diversify our risks and grow in other segments of the economy as well. But, 50% of all growth will be made in the agricultural sector, " he said.
At the same time, the market for lending to the agricultural sector faces increasingly fierce competition. "We push our elbows for every customer, in every region, in every segment. It does not matter if it is a client with 500, 1000 or 10 ths hectares. The competition is really fierce, "he emphasized.
On the other hand, the demand for credit resources among farmers shows a moderate reduction. In particular, it decreased among the companies that did not face reduced yields and managed to use additional income to repay loans earlier. "There is a pool of clients who have already formed a land bank, are fully equipped with equipment, have warehouses and no longer see where to develop. Such clients closed the limits and did not renew them either in OTP Bank or in other banks. Due to the high price of products, they have completely closed their needs for replenishment of working capital for the current year, CEO of "OTP Agro Factory" Ivan Yerko said.
Share these news with friends!
Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
Additional information
