Bank of India sees 20% credit growth

Bank of India sees 20% credit growth
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First Published: Thu, Apr 30 2009. 12 52 AM IST
Updated: Thu, Apr 30 2009. 12 52 AM IST
Mumbai: State-run lender Bank of India expects to maintain net interest margin at 3% in 2009-10 on softer deposit rates, a top official said on Wednesday.
The bank’s net interest margin rose marginally to 2.97%, from 2.95% despite the subdued credit growth scenario in FY09, chairman and managing director T.S. Narayanasami told reporters.
“We will hold on to net interest margin of 3% in the current year as impact of lower deposit rates will be felt from next quarters,” he said. It also sees credit growth rising by a fifth in FY10 while deposit growth is seen at 18%, he said.
The bank has restructured assets worth Rs4,800 crore in 2008-09, the chairman said.
Earlier in the day, the Mumbai-based bank posted a 7% rise in January-March profits to Rs810 crore, from Rs757 crore a year ago on subdued credit growth in the quarter.
Time lag between interest rate revisions also impacted margins, Narayanasami said.
In FY09, its loans rose 26.08%, while deposits rose 26.46%. The bank, with a capital adequacy ratio of 13.01% under Basel II norms, saw net interest incomes rising 17.75% to Rs1,433 crore in the quarter.
Shares in the bank ended 6.22% down at Rs235.15 in the Mumbai market.
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First Published: Thu, Apr 30 2009. 12 52 AM IST