Vijaya Bank targets 25 per cent business growth

Kolkata, Aug 19 (UNI) Targeting a major expansion, Vijaya Bank plans to achieve 25 per cent business growth at Rs 60,000 crore from Rs 48,000 crore and increase the number of branches to 1,000 from 924 this fiscal.

" We are on way to taking the present business of Rs 48,000 crore to Rs 53,000 crore by September targeting the Rs 60,000-crore mark by March, 2007. We will also expand our network by increasing the number of branches to 1,000 during this period, " Managing Director Prakash P Mallya told a news conference today while announcing the Bank's future plans.

Mr Mallya said of the total Rs 48,000 crore the advance component was Rs 18,000 crore that left a deposit of Rs 30,000 crore. The Bank had a target of increasing the deposit by 20 per cent at Rs 36,000 crore, he said.

Mr Mallya was accompanied by Bank's Executive Director T.

Vellappan at the news conference.

The MD said as part of its increased business activities, the Bank was mulling opening overseas branches in China, Dubai and Hong Kong and it had already applied to Reserve Bank of India seeking necessary permission.

To meet its increasing commitments, the Bank was also planning to raise upper tier (two) capital between Rs 500 crore and Rs 600 crore from 15-year maturity bonds of which Rs 250 crore had already been mobilised.

To another question, Mr Mallya said the gross NPA had come down to 2.9 per cent as of now from 3.17 in March, 2006. He said the Bank had a Rs 2,400-crore business and a deposit of Rs 1647 crore in the eastern region.

UNI KDG SJC AB 1632