ABN Amro eyes 30% growth

ABN Amro Bank is targeting a 30 per cent growth in net profit and assets in financial year 2005.

"We expect loans to grow by 30 per cent in the current fiscal," executive vice president & country representative, Romesh Sobti said. He was speaking at the sidelines of a press conference here to launch 'Smart Gold Card'.

With a book size of Rs 10,000 crore, the bank disbursed loans worth Rs 6,500 crore in FY 2003-2004. In the last fiscal year, the banks retail business grew faster than the wholesale business, said Sobti.

Its net non performing asset (NPA) dipped to 0.5 per cent as on March 2004 against 1.8 per cent in the previous year.

ABN Amro has received eight new branch licences from the Reserve Bank of India (RBI) and, by March 2005, it plans to increase its branch network to 24.

Sobti said the bank has approached the central bank to convert into a subsidiary. Following the conversion, ABN Amro Bank will be on par with local private sector banks.

He also expressed his readiness to meet priority sector norms and start rural branches.

Asked if the bank would need any capital to convert into a subsidiary, Sobti said the bank is over-capitalised as it has retained profits in the country for the last 15 years.

As of now, India contributes a minuscule number to the global figures but China and India are important in the management's mindspace in terms of market potential, he added.