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Canara Bank is confident of seeing better credit off-take than the national average during the current fiscal.
R.K. Dubey, CMD of Canara Bank, told Business Line that the bank may see 17-18 per cent growth in its total loan book this fiscal against the current national average of 16 per cent. In the previous fiscal, the bank's credit growth was at 16.4 per cent while the industry average was at 14.9 per cent.
Agriculture, MSME sector and retail loan portfolio of the bank is likely to increase significantly, at around 35 per cent, he said. Dubey was here for the FICCI organised Banking Conclave.
However, he indicated loans to infrastructure sector would be selective and continue to be subjected to the rigorous due diligence.
The infrastructure loan book of the bank is unlikely to grow beyond 10 per cent. Corporate sector loans too may grow at a relatively slower pace at 12-15 per cent.
R.K. Dubey, CMD of Canara Bank, told Business Line that the bank may see 17-18 per cent growth in its total loan book this fiscal against the current national average of 16 per cent. In the previous fiscal, the bank's credit growth was at 16.4 per cent while the industry average was at 14.9 per cent.
Agriculture, MSME sector and retail loan portfolio of the bank is likely to increase significantly, at around 35 per cent, he said. Dubey was here for the FICCI organised Banking Conclave.
However, he indicated loans to infrastructure sector would be selective and continue to be subjected to the rigorous due diligence.
The infrastructure loan book of the bank is unlikely to grow beyond 10 per cent. Corporate sector loans too may grow at a relatively slower pace at 12-15 per cent.
Good monsoon
“This year’s good monsoon has given a comfort level to lend and recover. Since April, we have seen credit growth to agriculture sector of 42 per cent. Through the year, we expect to reach an overall growth of around 35 per cent,” he said. The bank, which has 54 per cent of its branch network in the southern region, is specially focussing on villages and small towns as well as agriculture and MSME sectors.
Bank’s NRI/NRE deposits, particularly in Kerala, have been growing at a faster clip at 30 per cent in the past four months, Dubey said. He said the bank decided to raise the interest rate for NRI accounts.
Dubey said the experiment with “relationship banking” in the past few quarters has yielded substantial recovery from NPAs, which stand at 3 per cent. “The recovery in Q1FY14 (Rs 888 crore) reconfirmed the belief that borrowers, particularly retail borrowers, do not intend to default. Understanding the situation, minimum sacrifice and adjustments has been the key to our recovery effort. We are restructuring or rescheduling education loans. This portfolio NPA worth Rs 362 crore was expected to come down to Rs 100 crore this year through negotiations with students or parents,” he explained.
jayanta.mallick@thehindu.co.in
Source: thehindubusinessline
Bank’s NRI/NRE deposits, particularly in Kerala, have been growing at a faster clip at 30 per cent in the past four months, Dubey said. He said the bank decided to raise the interest rate for NRI accounts.
Dubey said the experiment with “relationship banking” in the past few quarters has yielded substantial recovery from NPAs, which stand at 3 per cent. “The recovery in Q1FY14 (Rs 888 crore) reconfirmed the belief that borrowers, particularly retail borrowers, do not intend to default. Understanding the situation, minimum sacrifice and adjustments has been the key to our recovery effort. We are restructuring or rescheduling education loans. This portfolio NPA worth Rs 362 crore was expected to come down to Rs 100 crore this year through negotiations with students or parents,” he explained.
jayanta.mallick@thehindu.co.in
Source: thehindubusinessline
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