The state-run Central Bank of India today said despite weak demand its loan book grew by a robust 23 per cent in the just-concluded fiscal.
"Our loans grew by above 23 per cent in the last fiscal and we expect a growth of 25 per cent in both deposits and advances in the current fiscal," Central Bank of India Chairman and Managing Director S Sridhar told reporters here today.
At the pre-policy consultation with the Reserve Bank of India (RBI) early this week, bankers had expressed confidence that they will be able to achieve a 20-22 per cent credit growth in the current fiscal.
Despite a weak market last year, PSU banks like Union Bank and Bank of Baroda managed to clock over 20 per cent growth in loans, while the largest lender SBI indicated that its loan growth is unlikely to cross 18 per cent in the last fiscal.
According to the apex bank data, banks just managed to meet the 16-per cent credit growth target set by it in 2009-10 through huge disbursals in recent months. Overall loan growth stood at 16.7 per cent during the reporting year.
Commenting on the marginal rise in non-performing assets, Sridhar said this was expected given the impact of global financial turmoil in the economy last year.
He said the bank is expected to receive the second tranche of capital infusion from the government--around Rs 250-crore--in the first half of FY11, Sridhar said. It had received Rs 450 crore capital before March.
More From This Section
Sridhar expects the Reserve Bank to hike its policy rates by 0.25-0.5 per cent in its April 20 annual monetary policy to contain high inflation.
Replying to a query, he said Central Bank will take a call on hiking its lending rates after assessing RBI's policy signals.
With a view to provide regular income to senior citizens throughout their lives, Central Bank has launched a reverse-mortgage-enabled loan annuity product called Cent Swabhiman Plus against property.
The product, which assures lifetime payment against a maximum of 20 years in the existing similar products, also offers a significantly higher quantum of monthly payment to the customer against. The annuity product is open for those above 60 and a spouse with a minimum of 55 years.