Central Bank aims loan growth of 22.5%, NIM of 3.5% in FY12

State-owned Central Bank of India today said it is expecting a credit growth of 22.5% and net interest margin (NIM) of 3.5% during the current fiscal.

"We are targeting a credit growth of 22.5%, while deposit growth of 20% in the current financial year," Central Bank of India Chairman and Managing Director S Sridhar said here.

The loan growth stood at 22.67%, while deposits grew by 10.64% in the last fiscal.

The bank is aiming to have NIM of 3.25 to 3.5% in 2011-12, he said.

NIM of the bank increased to 3.31% in 2010-11 as against 1.86 in the previous fiscal.

Sridhar said, the bank is also planning to open offices in Hong Kong and Nairobi, the capital of Kenya.

Besides, the bank plans to set up a joint venture in Mozambique.

"We are looking to set up branches in Hong Kong for which we have got approval from the Reserve Bank," he said.

Meanwhile, the bank signed an agreement with National Skill Development Corporation (NSDC) to finance vocational education.

As per the agreement, the bank will provide finance up to Rs 1.5 lakh for youth pursuing skill development with partner training institutes of NSDC.

Source: Business Standard