AllBank to moderate credit growth to 25-27%

After clocking in over 35 per cent year-on-year growth in advances for 2004-05 and 2005-06, Kolkata-based Allahadbad Bank will moderate the credit growth for to 25-27 per cent in 2006-07.

"It is a conscious decision to allow loan book growth at rate (25%-27%) below what was reported for FY-05 and FY-06 to maintain credit quality. There is no slowdown in demand for credit", bank CMD O N Singh said.

The business - comprising advances and deposits -has crossed Rs 79,000 crore in 2005-06. The credit rose by 35.4 per cent to Rs 30,000 crore and deposits by about 19 per cent to R 48,000 crore. The deposits could grow at 19-20 per cent rate in 2006-07, Singh said.

The bank is also working on medium term branch and ATM policy. It would discuss the branch plan with Reserve Bank of India on April 27.

It plans to reorganise branch network and open new branches in Southern region and select places which provide growth opportunities.

The public sector bank has selected Tata Consultancy Services to rollout core banking Solution (CBS) across its 900 branches in the country. The project worth Rs 225 crore would include training employees, networking and facilities management, he said.