Recent press reports said that Corporation Bank is expecting its credit growth and deposits to expand by 25 per cent and 22 per cent respectively, in the year2011-12.
Mr. Ramnath Pradeep, Chairman and Managing Director of corporation bank spoke to the press about the bank’s expectation on the credit growth and the deposits in the financial year 2012.He said that the bank has planned to focus on sectors such as retail, micro small and medium enterprises, and agriculture in order to achieve the planned growth. He strongly commented that an economy which is expected to grow at 8.5 per cent requires an increase in lending.
Mr. Pradeep said that there will not be any changes regarding deposit or lending rate unless intimated by the Reserve Bank of India. The corporation bank which is widely known as a private lender, will continue to concentrate on its personal loan, home loan etc
He added saying that the bank was not looking at raising any funds because the recent infusion of Rs 300crore has offered enough capital adequacy ratio and that the performance of theloans were good. He also said that the beneficiary accounts of the MFIs should be restructured and insisted on personal guarantees to be given by the promoters.