Syndicate Bank targets 20% growth in advances in FY'13

Manipal-based public sector lender Syndicate Bank is aiming at a credit growth of 20 per cent for 2012-13. The bank has achieved a growth of 14 per cent in advances at Rs 1,10,954 crore for the year-ended March 31, 2012.

“We are targeting a growth of 24 per cent in deposits this fiscal. During 2011-12, we mobilised Rs 1,47,707 crore, showing a growth of 16 per cent. We have also set a target of achieving a total business of Rs 3.5 lakh crore this, which will be a growth of 23 per cent over 2011-12,” M G Sanghvi, chairman and managing director, Syndicate Bank, told Business Standard.

 

The bank plans to achieve these targets by expanding its branch network during the year. It plans to open 300 more branches to take its network to over 3,000 branches by March 2013. It also plans to focus on mid-corporate segment during the year to increase its business.

“Fee-based income, insurance, mutual funds and government business are some of the areas where we want to aggressively increase our business this year. We are also starting a separate vertical for mid-corporate segment where credit risk is low and returns on investment are better,” he said.

Apart from opening specialised branches the bank also plans to open dedicated desks at its regional offices and big branches to concentrate on small and medium-level corporates. “We are looking at 25 per cent growth in this segment during the year,” Sanghvi said.

The bank is also planning to focus on recovery of bad loans by launching a special campaign in June. A team of 4-6 officers will be formed to address the recovery of small ticket loans at each of its 21 regional offices.

“We are targeting a recovery of at least Rs 500 crore from the segment compared to about Rs 50 crore in the last financial year. This will be our new initiative for the present financial year,” Sanghvi said.

The bank is also hopeful of raising Rs 539 crore by way of allotment of preferential shares to government of India during the first quarer this fiscal. “We need more capital to take care of credit requirements during the year. We had approached the government of India for capital infusion last financial year. The government had announced it in the Budget and it has been passed. We hope to get the funds this quarter along with many other banks,” he added.

The bank has already received board approval and EGM nod for raising capital through a preferential issue.