Bank of Baroda and Central Bank of India expect to beat RBI's year-end projection of 20 per cent credit offtake for the industry. While Bank of Baroda is expecting a credit growth of 23-24 per cent in the current fiscal, Central Bank of India is expecting a credit growth of 22 per cent.
Mr M.D. Mallya, Chairman and Managing Director, Bank of Baroda, said the bank expects a deposit growth of 21-22 per cent by end-fiscal. However, he ruled out an immediate an immediate increase in deposit rates. On liquidity, Mr Mallya said the tightness in the system should ease soon.
Mr O.P. Bhatt, Chairman, State Bank of India, said the fluctuating liquidity levels have made it difficult for banks to plan ahead. “Off late liquidity has been yo—yoing. There is not enough comfort on liquidity, so businesses and banks can't plan for a long period”, he said.
Liquidity has been tight in the banking system for some time now. Banks have been borrowing more than Rs one lakh crore from the Reserve Bank of India prompting RBI to announce liquidity easing measures.
Mr S. Sridhar, Chairman and Managing Director of Central Bank of India, said the bank may review the base rate in December.
According to Mr Mallya, the credit offtake in the banking system may fall short of 20 per cent.
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