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Tuesday, February 12, 2013

IOB expects credit growth of 18 per cent in FY13

State-owned Indian Overseas Bank (IOB) today said it expects loan growth of about 18 per cent in the current fiscal.

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

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

The Reserve Bank of India has projected 16 per cent 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.

Source: Economic Times


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