Central Bank of India may just about meet RBI’s credit growth target of 16 per cent for the fiscal, even as other banks are smarting under tardy credit offtake.
Thrust on home and SME loans has come to the aid of the bank on this score.
The sluggish credit growth of banks due to high interest rates and slowdown in the economy has prompted RBI to mull revision of its target of 16 per cent. In the first nine months of the year, banks credit growth was about seven per cent.
Initially, RBI had projected a 17 per cent credit growth for the year, but had to trim 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,’’ Malay Mukherjee, Central Bank of India Executive Director, told Business Line on the sidelines of a function here today.
The bank had dished out home loans worth Rs 6,000 crore in the first nine months. “We want to increase it by Rs 4,000 crore this quarter,’’ he said.
Recruitment
With an average employee age of 50-plus, Central Bank is hiring youngsters for officer and clerical positions.
“This year we are recruiting 2,000 people, and in the next we will take on board another 3,000. The problem we are facing is more to do with attrition, with the attrition level being almost 50 per cent among our younger employees,” Mukherjee said.
The bank is adding 200 branches this quarter, which will strengthen its network to 4,500 by the year-end, making it the third largest public sector bank in terms of reach. It is planning to have a presence overseas as well, by opening its first branch in Dubai and Hong Kong soon.
On the technology front, Mukherjee said the bank is set to launch mobile banking next month, contracting Tata Consultancy Services to set up the necessary platform.