Immediately after the Reserve Bank of India (RBI) asked banks to restrain credit growth to align it with the pace of deposit mobilisation, IDBI Bank on Thursday cut its loan growth target for 2010-11 from 18-20 per cent to about 10 per cent
“The bank would like to moderate credit growth to 10-12 per cent. It will not grow at over 33 per cent the way it did in 2009-10. There is lot of action (business activity) in February-March. But it would not like to take all of the business,” CMD R M Malla told reporters on Thursday.
This is a second instance when the public sector lender has cut its growth estimate. In October 2010, it had scaled down growth estimate to 18-20 per cent. Malla had then said that his priority was to improve margins and profitability.
RBI in its third quarter review had asked bank to moderate loan growth as pace of deposit accretion was substantially lagging behind credit expansion activity. This mismatch is growth rates had put pressure on liquidity in the market.
