Canara Bank expects 18-19 per cent growth in credit offtake next financial year. The bank has decided to be cautious about expanding its credit and is against adopting an aggressive strategy in lending as it was firm on maintaining asset quality. “We should be careful. The approach has to be proper,” Canara Bank Chairman and Managing Director S. Raman said.
The bank's net interest margin was expected to shore up by 20 to 30 basis points to about 2.9 per cent during the next fiscal from the current level of 2.7 per cent. Higher deposit rates and fall in low-cost CASA (current and savings accounts) deposits enhanced pressure on NIM as customers preferred to migrate to high yielding term deposits.
The bank was expecting about 19 per cent growth in its lending and 17 per cent in deposits.
