BoB expects 18-19% growth in credit, deposits in FY13

State-owned Bank of Baroda (BoB) today said it expects credit and deposit growth to be around 18-19% in the current fiscal, notwithstanding a poor show so far due to subdued economic conditions.

"Though credit growth is subdued now, it is likely to pick up as the economy gathers steam. I expect 18-19% credit and deposit growth this fiscal," BoB Chairman and Managing Director MD Mallya told reporters on the sidelines of a banking summit organised by Ficci and IBA.

Bank credit to the industry stood at Rs 19.68 lakh crore in July, up 17.2% from the same month a year ago, according to the RBI data. However, the pace of credit growth in July decelerated from 21.2% in July 2011.

On the stressed power sector led by SEBs, which are seeking a massive CDR (corporate debt restructuring) of around Rs 2 lakh crore, Mallya said there is no cause for concern as the bank is in a "reasonably better position".

In first quarter, a massive provisioning muted the third largest public sector lender's net growth to 10.3% at Rs 1,138.86 crore even though it witnessed a healthy jump in its core income.

BoB's core net interest income grew 21.8% to Rs 2,798.07 crore year-on-year, driven by a healthy 23% credit growth.