Syndicate Bank is hopeful of achieving a credit growth of around 15 per cent by the end of the current financial year.
“Though business growth is not very optimistic, we are hopeful of maintaining this level (15 to 16 per cent) growth this year. We are confident of maintaining the net interest margin around 2.8-2.9 per cent,” Syndicate Bank Chairman and Managing Director Sudhir Kumar Jain said.
The bank, he said, had not registered any major changes in the corporate lending side. The focus would essentially be on retail, MSME (micro, small and medium enterprises) and other sectors for driving growth. The recent measures initiated by the Reserve Bank of India were unlikely to have a major impact on the operations as “these are temporary and may be reversed in the coming days’’. “The measures put in place are likely to be withdrawn in a calibrated manner,” he said.
According to Mr. Jain, the bank’s gross non-performing assets (NPAs) had remained flat during the previous fiscal, though there was a minor increase in the net NPAs.
“The gross NPA is likely to see a decline in the second quarter in absolute terms as we have initiated a series of measures to substantially recover slippages in smaller accounts,” he said. Responding to queries, he said the bank was comfortably placed for meeting the Basel III norms and it had sought a capital infusion of Rs.1,820 crore during the current year to fulfil the requirements. “We are hopeful of getting the Centre’s nod soon,” he said.
