Demand for credit is likely to be better in the second half, a top official of Federal Bank said here today.

“Credit demand is expected to be better in the second half of the current financial year compared with the first half,” Federal Bank Managing Director and Chief Executive Shyam Srinivasan told reporters here.

He, however, said big capital expenditure programmes would take another three to six months to kick-start.

Talking about possible reduction in interest rates in various loan segments offered by the bank, Srinivasan said any decline in interest rate will depend on the reduction in the base rate.

He, however, said the bank has recently announced special offers in home loan segments for a specific period on the occasion of its founder’s day celebration.

“We may come up with some special offers during the festive season as well,” Srinivasan said.

Talking about branch expansion, he said, “We have already crossed 1,000-mark in the recent past. We will like to maintain the momentum“.

Federal Bank posted a 30.4 per cent rise in its net profit at Rs 190.4 crore in the June quarter. Net interest income rose 7 per cent to Rs 491.6 crore from Rs 460 crore during the same period.