Vijaya Bank expects weak credit growth in remaining fiscal

BANGALORE: Bangalore-based Vijaya Bank expects the last two quarters of the current financial year to be slow for loan growth as corporates and retail consumers postpone spending, hit by high interest rates, a top official said on Wednesday.

The lender, who has no exposure in the aviation sector including the beleagured Kingfisher Airlines, is cautious about lending to power, commercial real estate and textile sectors, H.S. Upendra Kamath, chairman and managing director told Reuters in an interview.

"Growth is stunted on all front. Industrial capex is not happening so there is no new funding demand. With inflation being high, disposable income of families is also being impacted. So consumption is being postponed," he said.

Source: EconomicTimes