Despite rise in interest rates and deteriorating macroeconomic environment, private sector lender IndusInd Bank has said it is hopeful of 25-30 per cent growth in advances in the current financial year. "We are hopeful of posting 25-30 per cent growth in credit in this fiscal.
Posting higher credit growth than the system will not be an issue for a mid-size bank like us," IndusInd Bank Chief Operating Officer Paul Abraham said. IndusInd posted a 29 per cent rise in its loan book to Rs 30,136 crore in the September quarter. As per latest RBI data, non-food credit offtake from banks grew 18.5 per cent to over Rs 43.11 trillion in the 12 months to November 4 despite the higher interest rate. This is the first time since August that credit growth has fallen below the 19 per cent mark on a year-on-year basis.
Referring to the strain in the loan book, Abraham said the banking system as a whole is facing pressure from sectors like steel, power and textiles. "There is no perceptible pressure on mid-corporate and retail portfolio as of now. But, we are closely watching these accounts."
During the July-September quarter, the private lender managed to maintain its asset quality. Its net non-performing asset (NPA) ratio was at 0.31 per cent, little changed from the previous quarter. Gross NPA ratio too almost remained unchanged at 1.09 per cent. The Hinduja Group-promoted bank had earlier said it is following a cautious approach in extending new loans to firms that will be possibly impacted through currency fluctuations.
Abraham further said the bank is hopeful of logging in sound growth in deposits in the current fiscal. IndusInd reported 45 per cent rise in net profit to Rs 193 crore from Rs 133 crore posted in the same period last year. Net interest income during the period rose 27 per cent to Rs 419 crore against Rs 330 crore a year ago.