The Hindujas-promoted IndusInd Bank is targeting a credit growth of over 20 per cent during the next financial year, but it will stay away from high-risk segments such as personal loans and mortgages.
Though private banks have been reluctant to lend, and credit growth from the segment was estimated at 5.3 per cent for the year up to February, IndusInd Bank Managing Director & CEO Romesh Sobti said that, during the fourth quarter, the private sector lender was expecting a 20 per cent growth in its loan book. The bank had reported an 11.2 per cent rise in net advances during the first nine months of the current financial year.
"There are still a lot of good companies, and you don't write off everyone. There is nothing like zero-risk. It is low-, medium- and high-risk, and you avoid high-risk though they give you high returns," Sobti said, after announcing the inauguration of new-look branches aimed at attracting more high networth customers. The bank is rolling out five such branches this year, which will be followed by 20 more during the next financial year.
Asked about interest rates, Sobti said that the prime lending rate was not the best measure as the bank was offering finance at as low as 7.5 per cent in certain segments, though its benchmark rate was 16.75 per cent.
Sobti said that the bank, which is continuing to expand its auto loan portfolio -- its mainstay over the years, intended to focus on corporate clients. The bank expected the corporate loan book to account for around 55 per cent of the portfolio by the end of the current financial year, as against 40 per cent at the start of 2008-09.
Besides, he said that IndusInd Bank was looking to tone up some segments, such as lending for commodities trading.
