IOB eyes 16-18% credit growth

IOB is eyeing a credit growth of 16-18 percent and deposits growth of 18-20 percent in the current financial year.

This was announced by the Chairman and Managing Director of India Overseas Bank, M Narendra, who also said that deposit growth for the bank stood at 18-19 percent for the last fiscal against 13-14 percent witnessed by the banking system.

"Luckily for us, even though CASA has not given us much growth, we had a good retail growth. Our deposit growth is around 18-19 percent against the systemic growth of 13-14 percent," he added.

Total deposit of banks grew by 13.4 percent to Rs 60.72 trillion as of March 23, which is below the RBI's projection of 17 percent for the last fiscal.

The bank also said NPA level of the bank is managable. "For IOB, we have hardly 5 percent defaults from our restructured assets. So, we are quite comfortable as far as NPA is concerned," he said.

Net profit of the public sector lender fell by 53 percent to Rs 108 crore during the third quarter owing to higher provisioning and rise in restructuired assets.

Total income of the bank grew by 45 percent Rs 5,015.33 crore during this period against Rs 3,452.86 crore in the same period previous year.

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