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IDBI Bank sees lower credit growth in FY10: CFO

IDBI Bank sees lower credit growth in FY10: CFO
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First Published: Fri, Jan 15 2010. 05 08 PM IST
Updated: Fri, Jan 15 2010. 05 08 PM IST
Mumbai: IDBI Bank expects 2009/10 credit to rise 13-15% on low disbursals, compared with a target of 25% set at the begining of the fiscal, chief financial officer P. Sitaram said on Friday.
“We had began the year with a high target but brought it down to 20%,” Sitaram told Reuters over telephone.
“But even that seems difficult because of lack of pick up it is expected to be around 13-15% now,” he said.
In the Oct-Dec quarter, the bank saw slow credit pick up of 7% quarter-on-quarter, he said.
“We are in infrastructure lending, that is seeing pick up,” he said adding the bank expects more disbursals to happen in the sector in the current quarter.
The state-run lender also expects net interest margins to rise 3 basis points to 1.2%in March quarter as cost of funds fall on repricing, he said.
Earlier in the day, the lender posted a 29% rise in Oct-Dec profits to Rs2.87 billion , beating street expectations.
A Reuters poll of analysts estimated profits at Rs1.97 billion.
“Profits were up because of higher interest income,” he said.
The bank’s net interest income rose 39% to Rs7.19 billion.
Shares in the bank ended 0.72% at Rs132.95 in the Mumbai market.
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First Published: Fri, Jan 15 2010. 05 08 PM IST