Chennai, July 15
"At this rate of interest, the present loan growth of 31 per cent is not sustainable for banks," said Mr K.C. Chakrabarty, Chairman and Managing Director, Indian Bank.
Speaking on the sidelines of a seminar on Values and Management, organised by
Tattvaloka, a socio-religious monthly brought out by the Shringeri Mutt, in Chennai, Mr Chakrabarty told
Business Line, "The loan growth rate may even drop to the levels of 17 to 18 per cent, which I think is good enough for the economy."
When asked whether he sees any rise in the repo rate, he said in a lighter vein, "I can definitely say that there will not be a cut nor will there be a rise of 1 percentage point in the repo rate. I may safely say... that repo rate may go up by 25 basis points."
According to Mr Chakrabarty, as part of the image makeover exercise in the run-up to its IPO, Indian Bank plans a year-long advertising campaign. "We have appointed Euro RSCG as our advertising agency, and have earmarked Rs 10 crore for the purpose," he said.
The bank plans IPO during the next calendar year.