Private-sector lender IndusInd Bank today said it is aiming at a credit growth of 25-30 per cent in the current financial year.
"We expect the average credit growth to be 20 per cent in the current financial year, but ours will be higher than that...We are targeting a growth of 25-30 per cent," IndusInd Bank Chief Executive Officer and Managing Director Romesh Sobti told reporters here today.
The bank, which has 210 branches, is planning to open 100 more branches this financial year, its chief operating officer Paul Abraham said. "We added 30 branches in the last four months, taking our number from 180 to 210. In FY11, we are planning 100 more branches," he added.
The bank is also looking to raise tier I capital in the current fiscal, Sobti said. "If we were to grow by around 30 per cent this fiscal we may need to infuse tier I (equity) capital," Abraham said. In the last quarter of FY10, it raised tier II capital of Rs 420 crore.
The bank's net profit jumped by 136 per cent to Rs 350.31 crore in FY10 against Rs 148.34 crore in the previous fiscal. Its other income touched Rs 553.48 crore in the reporting period against Rs 456.25 crore previous year.
The bank's non-performing assets fell by 0.64 per cent at 0.5 per cent as against 1.14 per cent in the previous fiscal.
In Q4 of last fiscal, its net profit rose by 94 per cent at Rs 97.96 crore compared to Rs 50.52 crore in the same period last year. During the quarter, other income declined to Rs 132.36 crore against Rs 169.32 crore in the year-ago period.
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"Other income fell on account of treasury income which stood at Rs 4.4 crore in Q4 as against Rs 76 crore in the year-ago period," Sobti said, adding for FY10, the bank's cost of deposits fell by 1.4 per cent and yield by 0.62 per cent.
On the proposed base rate which would be in force from July, Sobti said, "we are working on it. We have to see how many base rates are required and for how many tenures."
On the forthcoming monetary policy, he said the bank is expecting a 25 basis points hike in the cash reserve ration or CRR which is the money banks have to mandatorily park with the central bank.
"RBI may not be aggressive in its policy. There is a need to have a moderate monetary trigger. We expect CRR may be hiked by 0.25 per cent and a similar hike in repo (rate at which RBI lends to banks)rates and reverse repo (the rate which it pays to banks) rates," its global markets group head Moses Harding, said.