Private-sector lender, Development Credit Bank (DCB) has targeted to enhance its low cost deposit-base and expected to achieve an above 30 per cent growth in deposits and credits in FY 09, its chief said today.
"Enhancing the Current and Savings Account Deposits (CASA) is a key focus area as the interst earnings are under pressure on account of higher interest rates," DCB's Managing Director & Chief Executive Officer, Gautam Vir, told reporters here.
Presently, CASA contributes 27 per cent to DCB's total deposits, which, is expected to go up to around 30 per cent by fiscal end, Vir said.
The bank has also plans to scale up its small and medium enterprises (SME) loan portfolio, which currently contributes 10 per cent to its loan book, Vir said. Retail and Corporate loans contributes 45 per cent each to total advances.
Increased cash reserve ratio (CRR) requirements have impacted the liquidity conditions of banks, exerting pressure on their credit growth and profitability, Vir said.
Given the high inflation rate and continuing fiscal pressures, the apex bank is expected to come with further tightening measures in near future, Vir said.
