IDBI Bank eyes 10-12% credit growth in FY 11

Mumbai, Jan 27 (PTI) State-run lender IDBI Bank todaysaid it was eyeing a credit growth of 10-12 per cent in thecurrent financial year.

"We expect a credit growth of 10-12 per cent thisfiscal (FY 11)," IDBI Bank Chairman and Managing Director R MMalla, told reporters here.

The bank aims to consolidate this year and would notgo in for short-term loans in the last quarter, he said. "Wewill focus on low-cost funds while simultaneously lending togood corporates. We are looking to get a good spread."

The lender has inked an MoU with UIDAI to facilitateissuance of unique Aadhar numbers to its existing customersthrough various various channels like ATMs, he said.

During Q3 FY 11, the bank''s Board of Directors hasgiven in-principle�nod to the merger�of�two wholly-ownedsubsidiaries, IDBI�Home�Finance�and IDBI Gilts, with itself.

The lender has posted a 58 per cent jump in net profitat Rs 454 crore in Q3 as against Rs 287 crore in the sameperiod last year. Total business (deposits and advances) grew12 per cent at Rs 2,84,729 crore as compared to Rs 2,54,075crore in the corresponding period a year-ago.

"We are happy with the December quarter and hope tomake a good profit in the March quarter. Sectors likeinfrastructure, small scale industries and retail contributedmore in this quarter," Malla said.

The bank''s deposits grew by 5 per cent to Rs 1,50,239crore and advances rose 21 per cent to Rs 1,34,491 crore. Netinterest income (NII) stood at Rs 1,204 crore as against Rs717 crore in the same quarter of the previous year.