Vijaya Bank hopeful of 18-20 per cent credit growth

Vijaya Bank hopes to achieve an 18 to 20 percent credit growth in the current financial year.

The lender posted a 16 per cent rise in credit demand and 14 per cent increase in deposits in the first quarter.

"We have posted 16 per cent growth in credit off-take in the first quarter. But, as third and fourth quarter

witness more credit expansion, we are hopeful of clocking 18-20 per cent growth for the whole fiscal," said Vijaya Bank executive director Shubhalakshmi Panse.

However, she said, concerns regarding patchy monsoon and the overall gloomy economic environment may have adverse impact on credit pick-up.

"As far as deposit growth is concerned, we hope to end this fiscal with 16 per cent growth," she said.

While the lender's advances increased to Rs 59,306 crore in the June quarter from Rs 51,130 crore reported a year ago, its deposits increased to Rs 86,464 crore from Rs 75,877 crore in the same period previous fiscal.

Panse also said the bank is actively campaigning to increase its cheap cost deposit base to reduce the cost of funds.

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