'Banking system to see 20-25 pc growth in credit'

Dubai, May 6: ICICI Bank, India's largest private sector bank, has said that India's macro economic growth signals are so strong that the banking system is poised to see 20-25 per cent growth in credit in the current financial year, which demands to be adequately capitalised.

ICICI Bank Managing Director and Chief Executive Officer Kundapur Vaman Kamath, referring to its proposed five billion dollars capital-raising programme, said India is set for a long-term growth of 8-10 per cent and the manufacturing sector may see doubling of output in three years.

However, India's largest private sector lender sounded cautious on pressure points such as high inflation and gaining rupee.

''Growth should remain robust,'' ICICI Chief told reporters after opening its first branch at the Qatar Financial Centre in Doha yesterday.

Saying that structural changes are taking place in India which now has become a growth story for the rest of the world, he added that India requires over 500 billion dollars investments, and pointed out that the government in October doubled the budget for infrastructure spending to 320 billion dollars by 2012 to improve roads, airports and ports for augmenting economic growth.

Mr Kamath said ICICI bank is tapping the Indian and overseas markets next month with a five billion dollars public offer, of which three-fourth are expected from American Depository Receipts and the balance from domestic market.

UNI