Corporation Bank expects to close 2009-10 with a growth of about 20 per cent in advances and 22 per cent in deposits over the previous year.
“We are expecting a loan growth of 18-20 per cent and deposits growth of 20-22 per cent by the end of this financial year,” Corporation Bank CMD JM Garg said.
So far, in the current yearm, the Bangalore-based bank has seen a credit growth of 25 per cent and a deposits growth of 24 per cent. Garg said disbursements had started and the market was picking up. The bank’s housing loan portfolio had gone up by 12 per cent this year, compared with 6 per cent growth last year. The bank was expecting the growth for the full financial year at 15 per cent. The bank was planning to open 100 more branches and targeting a business of Rs 150 crore by the end of March 2010.
As of September 2009, its total business stood at about Rs 132 crore with 1,080 branches.
Corporation Bank Executive Director Asit Pal said the growth in advances, which is much higher than the industry average, was also because of the low base of the bank. He said the growth was coming from various segments including retail, small and medium enterprises and infrastructure.
The bank was planning to take organic as well as inorganic route for expansion. It had sought a capital infusion of Rs 4,000-6,000 crore for next three years under the recapitalisation programme of the government. The bank was also open to acquisitions outside the southern region, Pal said.