Public sector bank, Corporation Bank has fixed a target of 25% for itself this fiscal. The bank intends to expand its loan book by 25% and deposits by 22% in the FY’11. It includes increase in personal loans. This goal has been fixed by the bank due to demand from the retail and infrastructure sector, a top official of the bank claimed.
It has intentions of asking Government consent in the September quarter in order to raise capital worth Rs. 3000 crore through rights issue or a follow on public issue. This was stated by J.M. Garg, chairman and managing director of Corporation bank.
Garg said, “We expect a credit pick-up in the retail segment. Demand is also expected from infra sectors like roads, power and ports. We also expect demand from capital goods and pharmaceuticals”.
He also assured that the bank would not be hiking lending rates in the June quarter since it has adequate liquidity to fulfill loan growth objectives in this quarter.
The bank has posted a 20% increase in net profits in the January – March quarter worth Rs. 312 crore.
The net interest margin of the bank has gone up to 2.5% as against 2.19% previous year. The bad loans of the bank have also increased to 0.31% as against 0.29% previous year.