BoI expects sharp slow down in credit growth

Mumbai, Aug 1 (UNI) Public Sector lender Bank of India (BoI) expects a sharp slow down in credit growth to 18-19 per cent level, as compared to about 25 per cent in last fiscal, due to rising interest pressure.

Responding to a query on the present banking scenario in the back-drop of monetary policy tightening by the Reserve Bank, on the sidelines of a banking conference here today, BoI Chairman T S Narayansami, who is also Chairman of Indian Bankers Association, said the Bank's interest margins would be under pressure and overall credit growth will be moderated during the year.

He said oil prices have eased in the past few days, but the financial system is still under the influence of volatility bouts.

High inflation is likely to continue for another few months, however, with new crops it is being expected that food prices would come down that may ease the inflationary pressure, Mr Narayanasami asserted.

Asked about the rate revision by his Bank, he said the Bank may hold its asset-liability committee meeting in the next ten days to decide on its interest rate revisions.

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