Private sector lender IndusInd Bank expects its consumer finance loan book to rise 20% in 2009/10 and 25% in 2010/11 on robust growth in the vehicle finance segment. Their vehicle finance is picking up and IndusInd are seeing growth in auto, two-wheeler and three-wheeler segment. The bank also expects to maintain its target of 25-30% credit growth in FY10.
According to sources, Demand from corporates for working capital loans and pick-up in vehicle finance segment will help (loan) growth.
The lender has a total loan book of Rs18, 500 crore. Consumer loans make up 44% of the loan book, while the rest is corporate loans.
According to sources, IndusInd will bring more loans under coverage to raise coverage ratio, a key indicator of asset quality of banks, to 60% by March 2010, from 35% now to meet regulatory norms.
The Reserve Bank of India in its recent monetary policy asked banks to raise provision coverage ratio to 70% by September 2010. IndusInd also expects net non-performing assets to be below one percent in the current fiscal.