Central Bank chairman, KC Chaudhary:We are very optimistic and expect business to increase by 150 per cent. We are bullish on account of personal banking and expect higher demand in the housing finance sector--thanks to the sops and incentives provided by the Union budget. We expect a substantial loss of revenue on account of reduction in the prime lending rate (PLR) by 100 basis points however we have not as yet quantified it. An additional outflow from the banking system for 1998-99 on account of wage revision which will affect our profitability.

Dena Bank chairman Ramesh Mishra: Weexpect the 1999-2000 to be bright and cheerful. We expect a complete turnaround in the economy as it has currently reached the rock bottom. Our profits for 1998-99 will be under strain on account of wage burden and increased NPAs. We expect to improve our profitability for the current year as we have taken a conscious decision to keep our NPA level under control and improve management at the grassroots. Industrial revival is round the corner and we expect our income to go up substantially. We do not feel that a cut in PLR will have any adverse impact on the bank's profitability.

Indian Banks'Association CEO MN Dandekar: We expect 1999-2000 to be a better year for the banking industry. Last year was a bad year for the banks as credit offtake was tardy. This year, the credit off-take should pick up as we expect the agricultural production to go up by 5 per cent. The capital goods industry is expected to see marginally high investments which will help the credit pick up. Banks are also looking positivelytowards project and infrastructure financing. We also expect high growth in personnel banking sector.

Union Bank of India chairman AT Pannir Selvam: The year 1999-2000 is going to be a tough year for the banking sector as I do not expect the flow of deposit to be substantial. Banks' NPAs are expected to go up which will put pressure on the lending decisions of banks. The year may also see pressure on rupee as the country's exports are not going up. Credit pick-up is also unlikely to materialise unless we see some demand from the infrastructure sector. We also expect some serious debate on bank mergers and VRS. For some banks, Y2K compliance can also become a problem area.

Bank of Baroda executive director PS Shenoy: This is going to be a good year for the banking sector and we expect a total turnaround in the economy as the demand for credit is picking up. Sentiments have also improved over the last one year. This year will be technology-driven as the focus is on Y2K and how to tackle it.