Kolkata:The city-based public sector Allahabad Bank is targeting a growth of 20 percent in its loan portfolio and 17 percent in deposit this fiscal, a top company official said here Friday.

"We are looking at 20 percent loan growth and 17 percent deposit growth. The loan growth will be sourced from small and medium enterprises, steel, cement and commercial real estate sectors," the bank's chairman and managing director K.R. Kamath told reporters at a press meet.

The bank plans to maintain the net interest margin at 2.75 percent and the capital adequacy ratio at 11 percent during the current fiscal, he said.

Though the bank has headroom of Rs.25 billion, it does not plan to raise any capital now, Kamath said.

He also ruled out a rights issue, saying, "We are not keen on diluting holdings right now."

The bank will now remain focused on national operations, Kamath said, adding: "Looking at the current volatile international market situation we will remain cautious of any international operations."

Kamath said his bank was targeting a premium income of Rs.4 billion annually from general insurance business set up in partnership with other banks and financial institutions, after three years.

The partnership business, Universal Sompo General Insurance Co (USGICL), is a joint venture company between Allahabad Bank, Indian Overseas Bank, and private sector players Karnataka Bank, Dabur Investment Corp and Sompo Japan Insurance Inc.

This insurance company was soft-launched initially with two products, Fire and Aapat Suraksha, in February.

At present, it has a premium income of Rs.12.5 million, he said. The company got approval for 30 products from Insurance Regulatory and Development Authority (IRDA) and will start launching these products shortly.

Allahabad Bank Friday signed distribution agreement with USGICL for distribution of the joint venture's general insurance products to its customers from Nov 1. "Bancassurance will be our major thrust area," Kamath said.