The private sector lender, Federal Bank, is aiming to achieve a credit growth of 20 percent for the financial year 2012-13. This despite of slowdown in the economy and fall recorded in the growth of advances segment of the bank.
Talking on the matter, the Managing Director and CEO of Federal Bank, Mr. Shyam Srinivasan, said that though the bank has targeted 20-22 percent growth for this fiscal they are hopeful of achieving close to 20 percent.
It is to be noted that despite the tough economic conditions, the retail loans and gold loans segment of the bank are performing well. It is established by the fact that gold loans amount to 27 percent of Federal Bank's total loans and it recorded a 100 percent growth in the first quarter of the current fiscal. But, as the bank is cautious about lending to new projects, total advances growth has declined. Mr. Srinivasan also mentioned that the bank is going to focus on SMEs, NRIs and farm lending.
It is reported that the bank has been on an expansion mode since the last year. Today, it will inaugurate its 1000th branch in Kerala. During the last 13 months, the bank has added about 260 new branches and plans to open another 200 branches in this fiscal.