IndusInd Bank is lagging by Rs 100 crore in its priority sector lending requirements for the current fiscal.
The focus till March 1997 is on boosting its priority sector lending.
The bank has kept its corporate clients on hold till this shortfall is bridged.
This was revealed by M Lall, senior vice president, who was in the city to inaugurate the Calcutta branch.
The Reserve Bank of India stipulates that 40 per cent of all advances should be to the priority sector. Against this, the bank achieved only about 34 per cent.
With advances aggregating Rs 1,875 crore, IndusInd has lent only about Rs 650 crore to the priority sector so far.
Till March the bank intends to focus its entire attention on agricultural and small scale industry credit - the two main kinds of priority sector credit.
IndusInd Bank has more than doubled its deposits, advances and net profit between fiscal 1995 and 1996.
This year, too, it is set to do well with the bank already having achieved its targets with respect to advances and deposits. Aggregate deposits for this fiscal currently stand at Rs 2,500 crore as against a target of Rs 2,320 crore. The bank expects to make a profit of about Rs 60 crore to Rs 70 crore this fiscal.
With the Calcutta branch being formally inaugurated yesterday, its next phase of expansion shifts to the semi-urban areas.
Among the branches to be set up this year are those at Avinashi (TN), Gajuwaka (AP), Tiruvella (Kerala), Gurgaon, Mohali (Chandigarh) and Morbi (Rajkot).
It plans to open 30 more branches next year. Jaipur, Baroda and another branch at Mumbai are possible locations in the first phase of 1997-98. Also on anvil is a separate investment banking arm as well as forays into New York, London, Dubai and Hong Kong.
