ICICI Bank expects over 20% credit growth in 2011-12

ICICI Bank expects over 20% credit growth in 2011-12

New Delhi: The country’s largest private sector lender ICICI Bank on Thursday said it expects over 20% growth in loans in the next fiscal against 18% in 2010-11.

“It (credit growth) would be upward of 20%," ICICI Bank managing director Chanda Kochhar told reporters on the sidelines of an interactive session organized by industry body CII here.

She also said that the overall credit offtake in the country is likely to be over 20% in the next financial year.

“We are seeing a strong credit growth which is universal across the segment so it would be upward of 20%," she said.

Credit offtake from public and private sector banks in the country grew by over 24% to Rs38.98 trillion for the one-year period ended 11 February, 2011, as against Rs31.43 trillion in the corresponding period a year ago.

RBI, in its annual monetary policy at the beginning of the current fiscal, had estimated credit offtake to grow by 20% in 2010-11.

Loan offtake has been higher this fiscal on account of large borrowings by telecom firms to pay for 3G spectrum licences.

Participating in the interactive session, also attended by Lael Brainard, Under Secretary in US Department of Treasury, Kochhar said India and the US should increase bilateral economic cooperation.

Sharing his wish list from the US, she said, “find ways of working together...because even in the given set of policies other countries have more investments in infrastructure (in India) as compared to the US".

She also asked the US authorities to allow more Indian banks in America so that they could play “larger role" there.

“Ability of Indian banks to grow in the US is very strong," she said.

Brainard said the US is an open market and welcomes participation of foreign financial institutions.

Talking about capital cushion to be raised for financial institutions in the US, the visiting official said her country is very supportive of Basel III capital requirements.

“Banks will get thicker capital cushion...we are in track to implement Basel III," she said.