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Bank of Baroda expects 20% credit growth

Bank of Baroda expects 20% credit growth
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P Srinivas, Executive Director of Bank of Baroda is hopeful that the bank would be able to close the year with a credit growth of 19-20 per cent driven by a good show by the retail segments.

While the firm expects moderation in growth in its corporate loan book, its retail loan segment would grow faster in 2012-13, he said.

On capital infusion, he said government has not informed the bank about the quantum of infusion for the bank. The bank asked for Rs 1,500 crore infusion from the government in 2012-13.

Recently, government had announced an infusion of Rs 12,517 crore into public sector banks to boost their capital adequacy ratios and to support business growth.

Net profit of the bank rose 11.6 per cent to Rs 1,301.39 crore in the July-September quarter. Its total income rose 19.6 per cent to Rs 9,550.86 crore.

Meanwhile, it doesn’t see significant improvement in the asset quality and restructured book in the near term unless growth picks up.

The bank saw some improvement on the bad asset front but not great improvement. For significant improvement to happen, there is a need for growth to pick up, Srinivas told.

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