Federal Bank is aiming for acceleration in credit growth into ‘mid-teen’ figures in 2021-22 on the back of an economic recovery. Majority of the loan segments will grow at over 20 per cent levels and a few like corporate will also grow around 10 per cent to achieve the credit growth target next fiscal, while more headroom exists for growth in share of gold loans in the overall book, the portfolio growth will moderate to 20-30 per cent levels from the current 60 per cent levels.
There are early signs of a revival in private capital expenditure which will boost the corporate loan growth, and the same will be more visible by the second half of the current calendar year. The bank is ‘fairly close’ to the objective of having a 55:45 split in the loan book between retail and wholesale loans, and would like to maintain it the same way going ahead as well.
Federal Bank is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different States in India. It offers personal, corporate, NRI, SME banking, online banking services to its customers.