In a ‘subdued year’ with 14.5 per cent growth in the previous quarter, Union Bank of India has to moderate its growth to 18-20 per cent for the entire fiscal, Executive Director S. C. Kalia told reporters here on Saturday.

Industrial slowdown and slower credit recovery were among the reasons but the bank’s capital adequacy ratio was still ahead of the second quarter last year and had improved from 11.77 per cent to 13.76 per cent, he said.

“Net NPA (non-performing assets) is a manageable 0.3 per cent. The slowdown did affect recovery from advances and we found the entire export sector badly affected. With the government predicting a recovery to 7-8 per cent gross domestic product (GDP) growth and visible signs of revival in many sectors, we look forward to a better year ahead,” he said.

The bank had fairly large exposure to the infrastructure and power sectors and the former was in a better position since the second quarter.

The export sector also showed signs of growth after more than a year of stagnation.

About expansion, Mr. Kalia said 500 new branches were planned to be opened by the second half of the new calendar year and some of them in the current fiscal itself.

The joint venture asset management entity with a Belgian bank was about to be incorporated and expected to come out with some mutual fund products next year. The bank had no move to raise additional capital for the time being, he added.

More In: Companies | Business