Private sector lender IndusInd Bank expects a growth of up to 30 per cent in its corporate book this fiscal, even as the overall economic conditions continue to be gloomy, a senior bank official has said.

“The bank will be able to post a growth of 25 to 30 per cent in its corporate book given its small size and the focus on working capital loans,” bank’s head for corporate and commercial banking Suhail Chander told PTI here.

Asset book

As on June 30, 2012, the bank’s corporate advances had grown 18 per cent to Rs 18,484 crore. Consumer finance assets grew 48 per cent to Rs 18,761 crore to occupy an equal portion in the asset book.

Chander further said the growth in advances between corporate and retail is a function of liabilities or deposits raised by the bank and added that the ratio of 50:50 between corporate and consumers will remain unchanged till the end of the fiscal.

Credit growth

He added that the system may face an issue with credit growth given the slowdown in economic activity and asked for immediate corrective action from the policymakers to improve the climate.

IndusInd Bank will, however, not be impacted by the likely slowdown due to the relatively smaller size of its book.

Chander said the bank typically keeps away from long-term loans required for infrastructure projects, greenfield and brownfield expansions, given its small size.

However, on the working capital side, it funds across the board, right from a small corporate to a blue-chip company either through syndication or alone, he said.

The bank, which divides its corporate book into large corporates, mid-corporates, small corporates and public sector units, has never been choosy about a particular stream for asset growth and will continue to grow across streams, Chander said.

On the liabilities side, he said there is a trend wherein the rates on bulk deposits are coming down due to the disappearance of state-run lenders from the space.

When asked about the investment banking pipeline, he said the debt-focussed banks is witnessing a slowdown in deal flow. The inflow is not as good as it was two quarters ago. However, this will not affect the fee income component immediately, he added.