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%

Related News

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% credit growth 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.

Read more on:   

Read More

Rupee falls on oil demand, weaker euro

The rupee fell to near a one-week low on Monday hit by heavy demand for dollars from oil importers and tracking a euro that was under pressure.

Quick Links

More news from Finance Rss icon

Appointment of insurance agents

The Insurance Regulatory and Development Authority of India on Tuesday brought out an exposure draft for appointment of insurance agents. The ...

IBA to push for one more year of benefit for loans

With an economic revival taking longer than expected, banks plan to approach the Reserve Bank of India (RBI) to continue asset classification ...

SBI to raise Rs 15,000 cr via equity offering

Keeps option open for overseas issue

Back to Top