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Thursday, January 24, 2013

Central Bank of India may meet RBI’s 16% credit growth target

Central Bank of India may just about meet RBI’s credit growth target of 16 per cent for the fiscal, even as other banks are smarting under tardy credit offtake.

Thrust on home and SME loans has come to the aid of the bank on this score.

The sluggish credit growth of banks due to high interest rates and slowdown in the economy has prompted RBI to mull revision of its target of 16 per cent. In the first nine months of the year, banks credit growth was about seven per cent.

Initially, RBI had projected a 17 per cent credit growth for the year, but had to trim it by one per cent mid-way, as corporate houses turned to non-bank avenues for working capital. Lenders expect the growth to pick-up in the current quarter.

“We have achieved 12 per cent in the first nine months. We expect credit offtake, especially in the home segment, to pick-up this quarter. We may end the year at close to 16 per cent,’’ Malay Mukherjee, Central Bank of India Executive Director, told Business Line on the sidelines of a function here today.

The bank had dished out home loans worth Rs 6,000 crore in the first nine months. “We want to increase it by Rs 4,000 crore this quarter,’’ he said.


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