Strong signs of economic growth in the country have rendered confidence amongst bankers that the credit offtake this fiscal would reach the level of 20% set by banking regulator, Reserve Bank of India.
"With all available parameters, the credit growth will be definitely better than last year," SBI chairman, O P Bhatt said. "A 20% growth looks attainable at the moment," he added.
The 16% target set by RBI for last fiscal had been crossed by most banks with the industry average setting at 16.5%.
According to statistics, this year by June 18 the credit offtake of banks has surged by Rs 65,629 crore as compared to a dip by Rs 7,563 crore in the same period last year.
RBI deputy governor Subir Gokarn met senior bankers including Canara Bank CMD A C Mahajan, Axis Bank MD & CEO Shikha Sharma, Bank of Baroda CMD M D Mallya and Bank of India CMD Alok Misra, among others.
Speaking about the liquidity scenario, Bhatt said, "Liquidity is improving. By the end of July and going forward to August, liquidity is expected to be comfortable."
He also said that the BPLR system may finally evanish by June 2011.