Bank of Baroda has space to generate up to Rs30-40 bn in FY11, its senior official has said. The funds would be generated as tier-I and tier-II capital, Chairman and MD M.D. Mallya said. The PSU lender, which increased the benchmark prime lending rate by 50 basis points to 12.50% in August, anticipates deposits increasing in the 2nd half of the present fiscal.
Mallya added, “Second half is usually better… so, we would expect to achieve target and step up deposits in the second half”. Bank of Baroda’s Chief Economist Rupa Rege Nitsure had said in July that the lender anticipated its deposits to go up by 20-22% in FY11.
Mallya said the bank has seen deposits rising by 6 to 7% in the present financial year till date.