ICICI, other banks in India may see growth of 20 pc: Kochhar
ICICI Bank on Friday said the bank and the sector is expected to grow at 20 per cent per annum as economic growth accelerates.india Updated: Jul 16, 2010 21:28 IST
ICICI Bank on Friday said the bank and the sector is expected to grow at 20 per cent per annum as economic growth accelerates.
"The Indian banking sector can grow at least twice the GDP growth rate," ICICI Bank CEO and Managing Director Chanda Kochhar said in an interview with Bloomberg Television in London.
"I'm actually quite confident that India can very soon get to the double digit growth rates, so move from may be a 9 per cent growth rate in the GDP in the immediate future and then get on to 10 per cent," she said.
During 2009-10, Indian economy expanded by 7.4 per cent. The government expects economy to grow at 8.5 per cent in the current fiscal.
ICICI Bank aims to tap rising demand for credit as Kochhar expects that companies are likely to invest USD 250 billion in manufacturing and infrastructure projects in the next three years.
"Clearly there is a huge growth opportunity awaiting us," Kochhar said.
ICICI Bank, whose overseas operation account for 25 per cent of its total loans, will also aim to extend more credit to companies in Europe since banks there may have less capital to commit following the global financial crisis, she said.
The bank will be part of syndicated-loan deals, instead of buying assets or entering joint ventures, she said.
The bank is very well capitalised to handle growth in the next few years and doesn't need to add to its capital base any time soon, she said.
At the end of March 2010, the capital adequacy ratio of the bank stood at 19.4 per cent.
For the year ended March 31, 2010, the bank has posted a consolidated net profit of Rs 4,670.29 crore, up 30.56 per cent over the same year-ago period.