The Mumbai headquartered Central Bank of India is about meet RBI's credit growth target of 16 per cent for the current financial year, even as other banks are struggling with the credit offtake.
Concentrating on home loan and SME loans has come to the aid of the bank on achieving the desired credit growth target.
The slow credit growth of banks was due to high interest rates and slowdown in the economy has prompted RBI to mull revision of its credit growth target of 16 per cent. In the first nine months of the year, banks credit growth was about seven per cent.
Initially, RBI had estimated a 17 per cent credit growth for the year, but had to cut it by one per cent mid-way, as corporate houses turned to non-bank avenues for working capital. Lenders expect the growth to pick-up in the current quarter.
"We have achieved 12 per cent in the first nine months. We expect credit offtake, especially in the home segment, to pick-up this quarter. We may end the year at close to 16 per cent," Mr. Malay Mukherjee, Central Bank of India Executive Director said.
The bank had disbursed home loans worth Rs 6,000 crore in the first nine months of the current financial year. "We want to increase it by Rs 4,000 crore this quarter," Mr. Mukherjee said.