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Central Bank sees 25% credit growth in FY11-CMD

Central Bank sees 25% credit growth in FY11-CMD
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First Published: Mon, May 03 2010. 05 10 PM IST
Updated: Mon, May 03 2010. 05 10 PM IST
Mumbai: State-run Central Bank of India expects loans to rise 25% in 2010/11 boosted by its focus on retail banking and an increase in demand for short term loans by corporates, a top official said on Monday.
The lender expects net interest margin of 2.25% in FY11, S. Sridhar, chairman and managing director, told reporters.
Earlier in the day, Central Bank’s net in March quarter zoomed to Rs171 crore, up from Rs62 crore a year ago on better loan growth of 23.5% over the December quarter.
“Preference for corporate short term loans is still on. We will stress on retail loans this year,” he said.
The bank’s overall capital adequacy as on 31 March was at 12.24% under Basel II norms, down from 13.12% a year ago.
The bank sold non-performing assets worth Rs200 crore in FY10 and does not expect slippages in the corporate credit segment, he added.
It expects capital infusion of Rs250 crore this month to shore up tier I capital, which stood at 6.84% as on March 2010, Sridhar said.
The bank, 80.20% owned by the federal government, has sought Rs2000 crore of additional capital infusion from government, he said.
Central Bank shares ended 7.76% down at Rs148.65 in the Mumbai market that was down 0.98%.
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First Published: Mon, May 03 2010. 05 10 PM IST
More Topics: Company results | Central | Bank | Loans | Growth |