Mumbai: Union Bank of India said on 26 March it aims at a credit and deposit growth of 20% by the end of this fiscal, a top bank official said.
“By the end of the current financial year (FY 10), we expect to have a credit and deposit growth of 20%,” Union Bank of India chairman and managing director M V Nair, told reporters on 26 March.
Nair said credit growth for the industry in the next financial year (FY 11) would be 20-21%.
“Credit growth for the industry in FY11 will be 20-21% and we (Union Bank) are targeting a growth of 25% during the next fiscal,” Nair said, adding “our growth will be higher than that the industry.”
Nair said the bank would require a capital of Rs1,400 crore during the next fiscal.
When asked whether the bank was planning to increase its lending rates in the wake of the Reserve Bank hiking the repo and reverse repo rates, Nair said the bank would wait for the credit policy to be announced on 20 April before taking any decision.
“We need to wait for indications in the (credit) policy and by which time we will also get a reasonable understanding of the liquidity position. I don’t think we will look at hiking our interest rates for one more month,” Nair said.
Last week, the Central Bank raised repo and reverse repo rates (short-term rates at which RBI lends and borrows from banks) by 0.25% each.
Nair said the bank was planning to open an office in Belgium and has received RBI’s approval for it.
“We will now apply for approval from Belgium’s regulator--we expect to receive final approval in the next four to five months,” Nair said.