VB to raise Rs 700 crore Tier II Cap by December

Hyderabad, Sept 23 (UNI) Public Sector Vijaya Bank(VB) proposes to raise Rs 700 crore Tier-II Capital by December 2006 even as it planned to roll out a 'package' over the next ten days for ''middle and smallbusiness classes''.

The Bank with 11.55 per cent Capital Adequacy ratio will after raising the lower end of Tier II Capital of Rs 700 crores by this year end to achieve the Basel II norms can still raise another Rs 200 crores of Tier II Capital, Bank Chairman and Managing Director Prakash P Mallaya told newspersons here today.

Mr Mallaya said over the next eight to ten days, the Bank will come out with a ''number of concessions like free ATM Card and Insurance cover for middle and small business class''. Shortly it will also come out with concessional landing package for defence personnel and teachers as extended to doctors and recently to nurses.

However, the Bank's effort to open 1000 branches this fiscal may be jolted, if the RBI does not clear its appplication for 143 additional branches. Currently of the 926 Braches across the country it has linked 390 with core banking with 'Infosys solution' which will be extended to 510 branches by March 2007.

All the branches will be computerised by March 2009, he added.

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