State-owned Oriental Bank of Commerce (OBC) expects a loan growth rate of 19% this fiscal.
'As against the industry growth of the 16% we will be growing at 19% during the current fiscal,' OBC's Chairman and Managing Director SL Bansal said.
Mr Bansal, who took charge of CMD today, said the bank expects business growth of 20% during the current fiscal.
The total business is expected to touch Rs2.8 lakh crore by the end of next month, he said, adding OBC has business mix of over Rs2.62 lakh crore at the moment.
Asked about the outlook on the net interest margin ( NIM), Mr Bansal said: 'Our NIM was 2.83% as of December quarter. There will not be any dramatic change in the next one month time. We expect NIM to be around 2.8% for the current fiscal.'
On interest rates, he said rates will not come down in immediate future.
'But I believe in the first quarter of the next fiscal there will be reduction in interest rates. First the deposit rates would come down,' he said.
Talking about liquidity situation, he said Reserve Bank of India ( RBI) has multiple choice to infuse liquidity into the system.
' RBI should take some steps. We would favour reduction in cash reserve ratio ( CRR),' he added.
On January 24, the RBI had reduced the CRR by 0.5% to 5.5% to infuse liquidity into the system, and indicated a reversal of tight money policy stance.
With the reduction in CRR, as much as Rs32,000 crore was infused in to the system.
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'As against the industry growth of the 16% we will be growing at 19% during the current fiscal,' OBC's Chairman and Managing Director SL Bansal said.
Mr Bansal, who took charge of CMD today, said the bank expects business growth of 20% during the current fiscal.
The total business is expected to touch Rs2.8 lakh crore by the end of next month, he said, adding OBC has business mix of over Rs2.62 lakh crore at the moment.
Asked about the outlook on the net interest margin ( NIM), Mr Bansal said: 'Our NIM was 2.83% as of December quarter. There will not be any dramatic change in the next one month time. We expect NIM to be around 2.8% for the current fiscal.'
On interest rates, he said rates will not come down in immediate future.
'But I believe in the first quarter of the next fiscal there will be reduction in interest rates. First the deposit rates would come down,' he said.
Talking about liquidity situation, he said Reserve Bank of India ( RBI) has multiple choice to infuse liquidity into the system.
' RBI should take some steps. We would favour reduction in cash reserve ratio ( CRR),' he added.
On January 24, the RBI had reduced the CRR by 0.5% to 5.5% to infuse liquidity into the system, and indicated a reversal of tight money policy stance.
With the reduction in CRR, as much as Rs32,000 crore was infused in to the system.
....more info