RBI may cut credit target again: PNB

State-owned Punjab National Bank (PNB) aims to achieve credit growth of 17 per cent in 2009-10, but the pick-up in credit since October was “not very significant”, Executive Director Mohan Tanksale said on Friday.

“I am afraid that Reserve Bank of India may revise its credit growth target even lower in the January policy. We are still hopeful that PNB will achieve credit growth of more than 17 per cent,” he said.

Tanksale said the market’s expectation of a rise in credit growth from October onwards has “not happened”.

“I expect credit growth for the industry to be around 17-20 per cent,” he said.

RBI had revised downwards its forecast for banks’ credit growth to 18 per cent in its mid-term review of annual policy, from 20 per cent earlier.

Tanksale was of the view that the opportunity for companies to garner funds from mutual funds was not available to everybody.

When asked whether he supported any quantitative restrictions on banks’ investments in mutual funds, Tanksale said, “RBI has expressed its view on this issue, which is indicative of the stance it favours.”

He said PNB had done “nothing specific” to change its lending exposure to mutual funds.