Credit growth coming from different sectors, prognosis is positive: Bank of Baroda

“Like the overall growth rate, the loan growth numbers have been flattered by the low base effect. So, to that extent some correction might happen,” he said.

In terms of the Reserve Bank of India (RBI) changes, he said that the regulator needs to strike a fine balance between innovations and measures to guide growth ahead.

One of the things which have been very apparent is that the paradigm in terms of the banks working with fintechs and non-banking financial companies (NBFCs) has firmly shifted towards collaboration and it is likely to get strengthened further.

On the recent RBI's repo rate hike decision, he said that the recent rate prices have been well absorbed by the market.

On Friday, the RBI hiked the key repo rate by 0.50 percent to 5.90 percent to bring inflation under control. During the May-August period of this fiscal, it raised the policy repo rate by 140 basis points or 1.4 percent.

On growth momentum, he said that he would be quite sanguine there because corporate growth is likely to be significantly lower than overall retail growth but is still significantly better compared to the last few years.

According to him, there is enough momentum for the bank to ensure that net interest margins (NIMs) will be maintained at current levels or strengthened further.

Chadha expects NIMs to improve for the industry.

“Margins ought to increase for the industry as a whole," he said.

He is seeing a secular trend in terms of credit costs coming down.

The growth momentum as far as retail is concerned, is picking up.

“There is a lot of secular positive trend which are in place to ensure that retail credit growth continues in terms of momentum,” he mentioned.