<p>Public-sector lender Dena Bank is shredding its fixed deposits (FDs) due to the lack of credit growth, the bank’s Chairman and Managing Director, Ashwani Kumar, said.<br /><br /></p>.<p>“There are three components of deposits — current, savings and fixed. Savings bank growth of Dena Bank is around 12%, and we are very happy with that. The Casa Ratio of the bank is doing really very well. In terms of FD bulk, we have shred it in a big way and also high cost deposits. The credit growth is not there, so there is no point in taking high cost deposits,” Kumar told DH.<br /><br />Kumar blamed the lack of demand from the industry as the factor behind the lack of credit growth. <br /><br />“Demand is coming from the retail sector. There is big demand in the housing sector, and also in the agriculture sector. But they are all small-ticket size,” he added.<br /><br />He also opined that increasing demand in the housing sector will not cause repetition of the ‘2008 Bubble Burst’ in India. <br /><br />“What happened in the US was that prices were rising on a daily basis, which is not the case in India. So it was basically investor-driven. Also, the US doesn’t have margin system. We have an official margin system here. So, it is an entirely different case,” Kumar added.<br /><br />On the growing NPAs, he blamed certain court decisions and policy issues as its root cause.<br /><br /></p>
<p>Public-sector lender Dena Bank is shredding its fixed deposits (FDs) due to the lack of credit growth, the bank’s Chairman and Managing Director, Ashwani Kumar, said.<br /><br /></p>.<p>“There are three components of deposits — current, savings and fixed. Savings bank growth of Dena Bank is around 12%, and we are very happy with that. The Casa Ratio of the bank is doing really very well. In terms of FD bulk, we have shred it in a big way and also high cost deposits. The credit growth is not there, so there is no point in taking high cost deposits,” Kumar told DH.<br /><br />Kumar blamed the lack of demand from the industry as the factor behind the lack of credit growth. <br /><br />“Demand is coming from the retail sector. There is big demand in the housing sector, and also in the agriculture sector. But they are all small-ticket size,” he added.<br /><br />He also opined that increasing demand in the housing sector will not cause repetition of the ‘2008 Bubble Burst’ in India. <br /><br />“What happened in the US was that prices were rising on a daily basis, which is not the case in India. So it was basically investor-driven. Also, the US doesn’t have margin system. We have an official margin system here. So, it is an entirely different case,” Kumar added.<br /><br />On the growing NPAs, he blamed certain court decisions and policy issues as its root cause.<br /><br /></p>
