State-run Union Bank of India has projected a business growth of 25% for this fiscal.
Speaking to reporters at an event in Mumbai on Monday, MV Nair, the bank?s chairman and managing director, said, ?Pressures are there on our margins, but still we have nine months to go to achieve the target.? The bank has got exposure to the G-Sec market upto Rs 20,000 crore, and like its peers, it was also likely to suffer due to marked-to-market losses due to the high interest rates resulting in the depreciation of interest rates in the bank?s treasury portfolio. However, Nair maintained that the bank?s net interest margin at 2.85% should not be a problem by the fiscal-end.
The bank will announce its first quarter results on July 25. While the bank was likely to end the first quarter with a deposit growth of 23% at Rs 1,07,000 crore, up from Rs 86,000 crore a year ago, its advances are also likely to rise by 19% to Rs 76,000 crore up from Rs 66,000 crore a year ago.
Thus, the total business of the bank for the quarter would be in the range of Rs 1,81,000 crore from Rs 1,51,000 crore in the previous period. So far, the bank has raised a sum of Rs 6,000 crore from its recently-launched 400-day deposit scheme.