Industrial Development Bank of India (IDBI Bank) expects credit expansion to begin soon as corporates are likely to draw against sanctions already made. | |
| "The demand for credit has not been strong in the current financial year so far. We have, however, disbursed Rs 300-350 crore of retail credit per month this year," said chairman V P Shetty. |
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| He said the bank's deposits base has grown by Rs 2,000 crore over March 31, 2006 to Rs 28,000 crore and does not see a resource constraint. The deposit base of IDBI rose by 72 per cent in 2005-06 over Rs 15,103 crore in 2004-05. |
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| The deposit growth for entire banking sector stood at 24.05 per cent in 2005-06. It was 12.8 per cent in 2004-05, according to Indian Bank's Association data. IDBI Bank recorded 16 per cent growth in advances at Rs 52,518 crore in 2005-06. |
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| Referring to the liquidity in the system, Shetty said, "There is no to reason to have reservations about liquidity. RBI has been absorbing excess resources in the system. At present the liquidity is comfortable." |
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| The Reserve Bank of India (RBI) has been absorbing over Rs 40,000 crore per day through Liquidity Adjustment facility even after it raised reverse repo and repo rates by 25 basis points on June 8, 2006. Prior to the rate hike, the scale of absorption was in the excess of Rs 60,000 crore. |
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| He did not elaborate on the revision in the deposit and lending rates saying the asset liability committee reviews the interest rates every 15 days. |
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