Vijaya Bank's total deposits to cross Rs 36,000 cr by March

Bangalore, Feb 19 (UNI) The total deposits of public sector Vijaya Bank were expected to cross Rs 36,000 crore and advances likely to touch Rs 24,000 crore by next month, bank Chairman and Managing Director Prakash P Mallya said today.

Speaking to newspersons after inaugurating a new bank branch at Rajajinagar here, he said the deposit and lending ratio of the bank stood at 62 and 38 per cent respectively. The deposit growth was 27 per cent.

Mr Mallya said that in 2007-08, the bank would give top priority for lending to Small and Medium Enterprises, Retail, Infrastructure, Agriculture, Education and Housing sectors which offered tremendous growth in the financial market. Of these sectors, the bank had disbursed over 30 per cent of its financial assistance to farm sector where recovery was not as good as other sectors.

Referring to increase in interest rates following the RBI revising upwards the statutory lending rates, he said the enhanced interest rate would be applicable to prospective loanees only and the bank would not burden the existing customers.

Mr Mallya said the bank's NPA was the lowest among all the nationalised banks at 2.51 per cent this year.

He said the number of branches across the country was expected to cross 1,000 from the present 923 by next month. The bank proposed to lay its footprint overseas by opening branches in Dubai, Hong Kong and other places after the RBI granted permission.

UNI