State-owned Canara Bank expects a loan growth of 22 per cent in the current financial year, its Chairman said.

“We expect a credit growth of 22 per cent in the current fiscal. We have already seen growth picking up sharply in the retail segments,” Canara Bank Chairman and Managing Director, A.C. Mahajan, told reporters on the sidelines of a FICCI-IBA banking summit here today.

The lender has witnessed a very good growth in its home loans in the first quarter of the current fiscal and expects the momentum to continue in the remaining part of the year, he added.

The bank has also seen good credit demand from the corporate and steel sectors, he said.

On interest rates, Mr. Mahajan said rates are unlikely to harden in the months ahead.

However, other bankers had yesterday said lending rates have bottomed out in the industry and rates may start picking up in line with the credit off-take in the coming quarters.

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