Turbulence around but bankers hope for a good report card

Mumbai, March 31 With rising prices touching nearly 7%, bankers make believe there is some turbulency and a squeezing in borders but despite the shortcomings, they are optimistic of posting nice net income for the current financial termination March 31, 2008.

"Our overall public presentation during the fiscal twelvemonth 2007-08 was much on the expected lines," said deoxythymidine monophosphates Narayanasami, president and managing manager (CMD) of Depository Financial Institution of India. The bank's recognition growing is seen at 27% piece the sedimentation growing was likely to be at 24%, helium said. But the twelvemonth ahead looks to be of uncertainness and rise in involvement rates look inevitable unless rising prices degrees come up down. However, bankers are awaiting some signaling from the Modesty Depository Financial Institution of Republic Of India when it unveils the yearly pecuniary policy reappraisal later this month. "I don't believe involvement rates will come up down at this juncture," Narayanasami said.

"But it is too early to notice anything. All depends upon the public presentation of stock marketplace and the involvement charge per unit scenario," he added.

Talking about the inflation, he said, "I believe that rather than pecuniary one, it was the financial measurements like cutting of duties, improvement of supply side direction were the demand of the hr to undertake the inflationary pressure. I also believe that the rising prices was really the substance of concern. The debt marketplace will acquire harder in this scenario. In fact I experience that the rising prices was beyond government's purview," said Narayanasami.

"Interest rates are seen upward," said a senior banker at the country's biggest state-owned bank, State Depository Financial Institution of India. Requesting anonymity, he said that the current lag in the have hit the bank's recognition growth. "The recognition figure wouldn't up the 3rd quarter-end growing though but it is seen in the part of 18-20% during 2007-08. However, the sedimentation growing is more than likely to be at 24%," helium said.

Nevertheless the depository financial institution is hopeful of improving its proftiability in the new financial 2008-09. This is because recognition is expected to pick up and the depository financial institution is hopeful of a 20-22% growing in loans. The focusing on precedence sector loaning is seen championship up the recognition growing rate, he said. According to mendelevium Mallya, CMD, Depository Financial Institution of Maharashtra, "We are likely to witnesser a concern growing of 24% astatine Rs 71,500 crore as against the grade of last fiscal. Last twelvemonth the concern of the depository financial institution was recorded at Rs 57,000 crore." Mallya anticipates recognition growing to be...