State-run Allahabad Bank is reportedly targeting to attain 20% growth in its retail lending book in FY17. The bank is aiming the same on expectation of consumption-led economic growth this fiscal with higher government spending on salaries.
Sticky loans originating from the corporate sector pulled back banks’ profitability thereby pushing the lenders to compete with each other to grab a higher retail loan share. Allahabad Bank, which reported Rs 743 crore loss in the fiscal 2015-16 on deteriorating asset quality, will be chasing gains especially from housing loans and gold loans.
