Axis Bank expects credit growth of 14% in FY16

New Delhi:Private sector lender Axis Bank expects a loan growth of 14 per cent this fiscal on the back of economic and investment recovery.

“Coupled with gradual economic and investment recovery and funding needs for auction proceeds, bank credit growth is likely to be in the 12-14 per cent range in fiscal 2016, while we expect deposit growth in the range of 12-13 per cent,” Axis Bank said in its annual report.

The bank had recorded a loan growth of 22 per cent in the fiscal ended March 2015 while total deposit increased by 15 per cent during the year.

At the end of March 2015, total advances stood at Rs 2,81,083 crore while total deposits were Rs 3,22,442 crore.

The report further said the bank would strive for continual enhancement of shareholder value by efficiently using capital in order to maximise return on equity.

“Aiming to achieve this objective, the bank endeavours to develop an asset structure that will be sensitive to the importance of increasing the proportion of low risk weighted assets,” it said.

The bank’s capital management framework helps ensure an appropriate composition of capital and an optimal mix of businesses, it said.

It has implemented the Basel III capital regulation from April 1, 2013 in India in a phased manner and is to be fully implemented as on March 31, 2019.

This will also align full implementation of Basel III in India closer to the internationally agreed date of January 1, 2019, it added.