SBBJ aims to touch Rs 1.5 lakh cr biz by 2013-end
Jan 06 2013 , Mumbai
"Our balance sheet was at Rs 1,23,000 crore as of December 31, 2012, and we are aiming to take it to Rs 1,50,000 crore by the end of 2013 December," State Bank of Bikaner and Jaipur (SBBJ) Managing Director Shiva Kumar told PTI over phone.
The Jaipur-headquartered bank, one of the four associate banks yet to be merged with the parent State Bank of India, will end the fiscal 2012-13 with a balance sheet of Rs 1,30,000 crore, on account of loan pick-up and deposit mobilisations in the last quarter.
"The first two quarters were not so good on credit growth and we ended up having more deposit growth than credit growth. But the things have been improving in the last (third) quarter onwards," he said.
The increase has taken bank's advances growth to 16.5 per cent as of December 31, on par with the deposit growth, Kumar said, sounding confident that the bank will meet its targeted 17 per cent advances growth for the fiscal.
SBBJ is concentrating on the retail advances, largely resilient to the economic troubles, to drive credit growth.
Kumar said he expects a 0.25 per cent cut in the repo rate by the Reserve Bank in its policy announcement this month.
In that case, SBBJ will respond by cutting deposit rate by 0.50 per cent which will also help it gain on its net interest margin, which has suffered because of aggression shown in cutting lending rates, he said.
Kumar said he expects the bank's Net Interest Margin (NIM) to fall marginally by 0.10 per cent for the third quarter as it could not usher in a deposit rate cut during the quarter, though it cut the base rate or the minimum rate of lending.