Allahabad Bank eyes 18 percent deposit, credit growth

June 15th, 2009 - 7:02 pm ICT by IANS  

Kolkata, June 15 (IANS) The city-based Allahabad Bank is looking at a credit and deposit growth of 18 percent in the current fiscal, a top bank official said here Monday.
“The growth estimates are based on RBI (Reserve Bank of India) guidelines. We are projecting a growth of 18 percent in both the parameters,” the bank’s chairman and managing director K.R. Kamath told reporters on the sidelines of its annual general meeting.

At the beginning of the current financial year, the bank projected a credit and deposit growth of around 20 percent. “We are going by the RBI guidelines,” Kamath said explaining the scaling down of its projections.

The bank has projected a business level of Rs.170,000 crore as on March 31, 2010, with deposits of Rs.100,000 crore and credit of Rs.70,000 crore.

During the current fiscal till June 5, Allahabad Bank achieved a 25 percent year-on-year loan growth and a deposit growth of 19 percent, Kamath said.

Saying that the bank does not have any immediate need to raise capital and would only do that if the market conditions are conducive, he added: “We may raise Rs.1,000 crore combining both tier I and tier II this fiscal.”

Asked whether the bank will review lending rates shortly, Kamath said both the government and the Reserve Bank of India (RBI) had requested banks to review interest rates.

“We will definitely respond to it to the extent it is possible.”

The bank’s net profit for 2008-09 stood at Rs.768.6 crore as against Rs.974.74 crore the year before on account of higher provisioning for investment depreciation and income tax, Kamath said.

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