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IOB expects credit growth of 18% in FY13

Last Updated: Tuesday, February 12, 2013 - 20:31

New Delhi: State-owned Indian Overseas Bank (IOB) on Tuesday said it expects loan growth of about 18 percent in the current fiscal.

"In the current fiscal (2012-13), we may be growing by at least 16-18 percent," IOB Chairman and Managing Director M Narendra said during an event at Hansraj College here.

The Chennai-based bank recorded a 7 percent growth in net profit at Rs 116.50 crore during the third quarter ended December 2012.

The Reserve Bank of India has projected 16 percent credit growth for the banking sector for the current fiscal.

Speaking on the budget wish-list of the banking sector, Narendra said the banking sector favours treatment of the non-performing assets (NPAs) as a kind of expenditure.

"Budget expectations that we are having from the banking sector is that these NPAs, which we are having, should be treated as one type of expenditure and we should get income tax benefit to the full extent," he said.

Besides, banks should be allowed to issue long-term bonds with some tax benefits to counter asset-liability mismatch.

"We should be allowed to go for the long-term bonds with a little tax benefit, just like other institutions since there is a lot asset-liability mismatch," he said.

PTI

First Published: Tuesday, February 12, 2013 - 20:31
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