BoB expects 18-19% growth in credit, deposits in FY'13
Mumbai: State-owned Bank of Baroda (BoB) Tuesday said it expects credit and deposit growth to be around 18-19 percent in the current fiscal, notwithstanding a poor show so far due to subdued economic conditions.
"Though credit growth is subdued now, it is likely to pick up as the economy gathers steam. I expect 18-19 percent credit and deposit growth this fiscal," BoB Chairman and Managing Director MD Mallya told reporters on the sidelines of a banking summit organised by Ficci and IBA.
Bank credit to the industry stood at Rs 19.68 lakh crore in July, up 17.2 percent from the same month a year ago, according to the RBI data. However, the pace of credit growth in July decelerated from 21.2 percent in July 2011.
On the stressed power sector led by SEBs, which are seeking a massive CDR (corporate debt restructuring) of around Rs 2 lakh crore, Mallya said there is no cause for concern as the bank is in a "reasonably better position".
In first quarter, a massive provisioning muted the third largest public sector lender's net growth to 10.3 percent at Rs 1,138.86 crore even though it witnessed a healthy jump in its core income.
BoB's core net interest income grew 21.8 percent to Rs 2,798.07 crore year-on-year, driven by a healthy 23 percent credit growth.