The Reserve Bank is likely to tighten the monetary situation further if the oil prices continue to surge which could to add to inflationary pressure, a top banking official said here. "You may probably see some more liquidity controls like the cash reserve ratio being altered again...if oil prices go beyond tolerable levels..," J&K Bank’s Chairman and Chief Executive Officer Haseeb A Drabu told reporters on the sidelines of a seminarin Mumbai.
CRR is the amount of cash the banks need to maintain with the central bank without interest.
J&K Bank has seen pressure on its margins in the last fiscal due to the general market environment and slowdown in the Economy, which is more visible in its retail and credit portfolios, he said.
"We do see some impact. This is because of the general environment and also due to a slowdown in the country’s Economy. While there is a visible slowdown in retail and real estate portfolios, industrial credit segment has been less affected," he said.
The bank has targeted a 35 per cent growth in its net profit for this fiscal year and a 30 per cent growth in its credit off-take, he said.
J&K Bank, presently, has a deposit base of Rs 28,000 crore which is expected to go upto Rs 36,000 crore by the year-end.
The contribution of current account, savings accounts deposits (CASA) is likely to go up to 42 per cent of the total deposits from the present 40 per cent, Drabu said.
J&K bank has identified the small and medium enterprises (SMEs) and agriculture portfolios as key growth drivers in the current fiscal and has plans to scale up its branch network to around 600, with an addition of 40 branches this year, Drabu said.
The bank had a good recovery of its bad loans in 2007 and hopes to further bring down its net non-performing assets (NPAs), which now stand at around one per cent, he said.
It posted a net profit of Rs 360 crore in FY 08, which is 31 per cent up from the profits recorded in 2006-07 while its total business stood at around Rs 47,475.87 crore in FY 08.
Total advances of the bank as at FY 08 stood at Rs 18,883 crore while it has a capital adequacy ratio of around 13 per cent.
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