According to managing director and chief executive Sanjeev Chaddha, Bank of Baroda (BoB) has maintained its guidance that retail loans will increase more quickly than its corporate portfolio this year. Total credit growth is anticipated to be between 10 and 12 percent. In the June quarter, BoB’s advances increased by 15.7 percent from a year earlier, with retail advances increasing by 23.2 percent and corporate loans increasing by 17.3 percent.
We had predicted that the system’s credit growth would be 10 to 12 percent. We want to maintain margins while growing at system pace or higher. According to the evidence at hand, we have improved. Last year, the first quarter was weak. Something better than that might be in view “Chaddha stated. “It makes sense to balance the portfolio with quicker retail growth. Loans for cars, houses, and education are all included in retail. There is room for continued broad-based growth. Retail growth should outpace corporate growth even as corporate loans increase ” he said
The state-run lender expects to recover bad loans of $13,000 crore this fiscal year, which would reduce its credit cost to 1.25 to 1.5 percent. At the conclusion of the June quarter, BoB’s asset quality had grown from 6.61 percent in the March quarter to 6.26 percent. The bank added new problematic debts totaling $3,266 crore during the quarter. “We have noticed a comeback in smaller loans time and time again. Slippages are reducing, which suggests that smaller accounts are still recovering. That should raise the quality of credit. According to Chaddha, we want to retrieve $13,000 crore.
