Syndicate Bank eyes 16% credit growth this fiscal

Syndicate Bank is expecting credit to grow at 15-16 per cent this fiscal, and a net interest margin of about 2.80 per cent.

“The credit growth situation is not very optimistic for banks. But we will be able to maintain this level of growth,” Sudhir Kumar Jain, Chairman and Managing Director, Syndicate Bank, told newspersons here.

As there has been no demand from corporate sector for loans, the focus would be on the priority sector, micro, small and medium enterprises, and the mid-corporate and retail segments, he added.

To improve the asset quality by recovering non-performing loans, the Bangalore-based bank has formed teams to recover small loans that are under stress. “Most of the NPAs are small and around Rs 10 lakh. It will be easy to recover them. We have activated an entire branch network in this regard,” Jain said. In the first month of the second quarter, bank recovered Rs 300 crore with this special drive.

CAPITAL

To ensure compliance to new capital adequacy under Basel III norms, Syndicate Bank has requested the Government for a capital infusion of Rs 1,830 crore in the current financial year.

“We are largely comfortable, but sought the infusion assuming 20 per cent business growth,” Jain said.

naga.gunturi@thehindu.co.in

Source: thehindubusinessline