|Bangalore based lender, Vijaya Bank is expecting a credit growth of 18-20% for the current fiscal. The bank registered a 16% credit growth in the first quarter.
Ms. Shubhalakshmi Panse, Executive Director expects the second half of year to bring some positivity in the credit demand and bank achieves its 18-20% credit growth target. She however was concerned of the effects of the poor monsoon on the credit offtake.
The public sector bank saw a 14% growth in deposits , while the advances grew by 16% in the quarter ending June 30.
Bank's deposits for the Q1 increased to Rs. 86,464 crore against Rs. 75,877 crore in the previous year; the advances for the same period were Rs. 59,306 against Rs. 51,130 in the first quarter on annual basis.
Ms. Panse also emphasized on acquiring low cost deposits by adding more current account savings account (CASA) and has launched a campaign 'Vision 100' for acquiring more customers unded this head. This would aslo reduce the bank's dependence on bulk deposits.
Ms. Panse further added that the bank does not intend to reduce the the interest rates akin to what State Bank of India has done. The bank's Q1 net profits were up by 54% to Rs. 111.36 crore.