The associate of State Bank of India, State Bank of Bikaner and Jaipur (SBBJ) has cut the loan growth target from 18 per cent to 16.5-17 per cent for the current fiscal due to the slowdown in the corporate credit demand.
Mr. Shiva Kumar, Managing Director of State Bank of Bikaner and Jaipur said, "As of now it (corporate credit) is dull and still does not show positive signs about growth".
SBBJ at the beginning of year i.e. April, 2012 had set up the target of 18 per cent for the loan growth. The loan book grew by about 14 per cent to Rs 50, 243 crore in 12 months ended on September 2012.
The bank also put an emphasis on expanding its retail loans like housing and vehicle. The net profit for the Q2 grew by 51 per cent to Rs 169.21 crore from Rs 112.17 crore.
Net Interest Income (NII) grew by 42.25 per cent to Rs 679 crore. Net Interest Margin also grew from 3.31% to 3.96% in Q2 of this fiscal. Growth in deposits was by 13.58% to RS 64, 829 crore. The gross NPAs stood at Rs 1681 crore for the second quarter against Rs 1652 crore for the corresponding quarter of the last fiscal.