IOB eyes 16-18% credit growth in FY13

Deposit growth for the bank stands at 18-19% against the systemic growth of 13-14%

Public sector lender (IOB) today said it is aiming a rate of 16-18% and a deposit growth rate of 18-20% in the current financial year.

"Currently, we aim 18-20% deposit growth and 16-18% in FY13," Chairman and Managing Director M Narendra said.

He added deposit growth for the bank stood at 18-19% for the last fiscal against 13-14% witnessed by the banking system.

"Luckily, for us, even though CASA [current account, savings account] has not given us much growth, we had a good retail growth. Our deposit growth is around 18-19% against the systemic growth of 13-14%," he added.

Total deposit of banks grew by 13.4% to Rs 60.72 lakh crore as of March 23, which is below the RBI's projection of 17% for the last fiscal.

Referring to expectation from the upcoming credit policy, Narendra said the central bank would take a view after considering inflation number along with current tight liquidity situation.

He, however, said reduction in lending rates by the bank will be little difficult due to present cost structure.

"The cost of resources has not gone down and, in fact, margins are under stress. Unless, we are able to ramp up CASA growth along with a parallel growth in yield, it will be little difficult [to cut interest rates] at this point of time," Narendra said.

About hiring plans in the current fiscal, he said the bank will hire around 3,500 officers and clerical staff in this fiscal.

The bank also said non-performing asset (NPA) level of the bank is manageable.

"For IOB, we have hardly 5% defaults from our restructured assets. So, we are quite comfortable as far as NPA is concerned," he said.

Net profit of the bank fell by 53% to Rs 108 crore during the third quarter owing to higher provisioning and rise in restructured assets.

Total income of the bank grew by 45% Rs 5,015.33 crore during this period against Rs 3,452.86 crore in the same period last fiscal.

image
Business Standard
177 22
Business Standard

IOB eyes 16-18% credit growth in FY13

Deposit growth for the bank stands at 18-19% against the systemic growth of 13-14%

Press Trust of India  |  Mumbai 

Public sector lender (IOB) today said it is aiming a rate of 16-18% and a deposit growth rate of 18-20% in the current financial year.

"Currently, we aim 18-20% deposit growth and 16-18% in FY13," Chairman and Managing Director M Narendra said.

He added deposit growth for the bank stood at 18-19% for the last fiscal against 13-14% witnessed by the banking system.

"Luckily, for us, even though CASA [current account, savings account] has not given us much growth, we had a good retail growth. Our deposit growth is around 18-19% against the systemic growth of 13-14%," he added.

Total deposit of banks grew by 13.4% to Rs 60.72 lakh crore as of March 23, which is below the RBI's projection of 17% for the last fiscal.

Referring to expectation from the upcoming credit policy, Narendra said the central bank would take a view after considering inflation number along with current tight liquidity situation.

He, however, said reduction in lending rates by the bank will be little difficult due to present cost structure.

"The cost of resources has not gone down and, in fact, margins are under stress. Unless, we are able to ramp up CASA growth along with a parallel growth in yield, it will be little difficult [to cut interest rates] at this point of time," Narendra said.

About hiring plans in the current fiscal, he said the bank will hire around 3,500 officers and clerical staff in this fiscal.

The bank also said non-performing asset (NPA) level of the bank is manageable.

"For IOB, we have hardly 5% defaults from our restructured assets. So, we are quite comfortable as far as NPA is concerned," he said.

Net profit of the bank fell by 53% to Rs 108 crore during the third quarter owing to higher provisioning and rise in restructured assets.

Total income of the bank grew by 45% Rs 5,015.33 crore during this period against Rs 3,452.86 crore in the same period last fiscal.

RECOMMENDED FOR YOU

IOB eyes 16-18% credit growth in FY13

Deposit growth for the bank stands at 18-19% against the systemic growth of 13-14%

Public sector lender India Overseas Bank (IOB) today said it is aiming a credit growth rate of 16-18% and a deposit growth rate of 18-20% in the current financial year.

Public sector lender (IOB) today said it is aiming a rate of 16-18% and a deposit growth rate of 18-20% in the current financial year.

"Currently, we aim 18-20% deposit growth and 16-18% in FY13," Chairman and Managing Director M Narendra said.

He added deposit growth for the bank stood at 18-19% for the last fiscal against 13-14% witnessed by the banking system.

"Luckily, for us, even though CASA [current account, savings account] has not given us much growth, we had a good retail growth. Our deposit growth is around 18-19% against the systemic growth of 13-14%," he added.

Total deposit of banks grew by 13.4% to Rs 60.72 lakh crore as of March 23, which is below the RBI's projection of 17% for the last fiscal.

Referring to expectation from the upcoming credit policy, Narendra said the central bank would take a view after considering inflation number along with current tight liquidity situation.

He, however, said reduction in lending rates by the bank will be little difficult due to present cost structure.

"The cost of resources has not gone down and, in fact, margins are under stress. Unless, we are able to ramp up CASA growth along with a parallel growth in yield, it will be little difficult [to cut interest rates] at this point of time," Narendra said.

About hiring plans in the current fiscal, he said the bank will hire around 3,500 officers and clerical staff in this fiscal.

The bank also said non-performing asset (NPA) level of the bank is manageable.

"For IOB, we have hardly 5% defaults from our restructured assets. So, we are quite comfortable as far as NPA is concerned," he said.

Net profit of the bank fell by 53% to Rs 108 crore during the third quarter owing to higher provisioning and rise in restructured assets.

Total income of the bank grew by 45% Rs 5,015.33 crore during this period against Rs 3,452.86 crore in the same period last fiscal.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard