Syndicate Bank eyes 20 pct loan, deposit growth in FY09

KOLKATA (Reuters) - State-run Syndicate Bank is looking at a loan and deposit growth of 20 percent each in the year to March 2009, a top official said on Wednesday.

The bank also plans to maintain its net interest margin at 2.74 percent during the year, Chairman and Managing Director George Joseph told reporters.

It cut its prime lending rate by 75 basis points to 13.25 percent on Tuesday.

The bank would implement a 50-basis-point cut in deposit rates for maturities of one year and above from Dec. 1, he said.

On Tuesday, Indian state-run banks vowed to follow the Reserve Bank's lead and cut lending rates.

Over the weekend, the central bank cut its main short-term lending rate by 50 basis points and banks' cash and bond reserve requirements by 100 basis points each to shore up growth and protect Indian economy from global woes.

The Manipal-based bank's capital adequacy ratio now was 11.55 percent, Joseph said.

It has no immediate plans to raise capital, but if needed it may raise 3 billion to 5 billion rupees through subordinated bonds, he said.

"We have sufficient liquidity to maintain loan growth projections in the current year."