Corporation Bank aims for 22-25 % credit, deposit growth

Public sector Corporation Bank is aiming for a credit and deposit growth of 22-25 per cent in FY 10 and also plans to raise around Rs 1,000-crore in different tranches over this period, a senior bank official said.

"This fiscal we are targeting a credit and deposit growth of 22-25 per cent," Corporation Bank's Executive Director, Asit Pal, told reporters here today.

The bank which already raised Rs 1,000-crore under its Tier II capital raising plans for FY 10, would be raising another Rs 1,000-crore in tranches over the year, Pal said.

"We had plans to raise Tier II capital of around Rs 1,500-2,000 crore for the current fiscal. Out of that, we have already raised Rs 1,000-crore during April in two tranches and the rest we will be raising over the year in different tranches," he said.

The bank also sees a scope for reduction in its deposit rates by 0.25-0.50 per cent, he said.

"Our deposit rates for a one-year term is 7.5 per cent and there is a scope for reduction in deposit rates by 0.25-0.50 per cent. Our ALCO will review our rates and take a decision by end-this month," Pal said.

The bank is also considering a reduction in its lending rates, he said.

The bank also expects to maintain its net interest margin (NIM) at 2.3 to 2.5 per cent in the first quarter this fiscal and was hopeful that it would increase in the second quarter, he said.