Vijaya Bank to hit capital market again

Kochi, Aug 7: Vijaya Bank proposes to raise Rs 300 crore from the capital market in December or January this financial year, CMD Prakash P Mallya said today.

Addressing the press here, Mr Mallya said the bank raised Rs 200 crore from the market some time ago and would go to the market again later this year to raise another Rs 300 crore.

Vijaya Bank expects to open its first overseas branches in Dubai and Hong Kong during the financial year.

It had applied to the Centre and the RBI for approval to open branches in China, Hong Kong and Dubai. It was also planning to apply for opening a branch in Malaysia also.

''We are hopeful the clearances will be received to open our first overseas branch this year,'' he added.

On the bank's plan to open a branch in China, he said ''like India, China also is a happening country. Besides, there is a large amount of bilateral trade which can benefit.'' Mr Mallya said Vijaya Bank had got RBI permission to open 70 new branches in the country this year. The bank will focus on expanding its network in the South.

The bank presently had 985 branches and hoped to touch 1,050 by March, 2008.

Asked if the bank had any merger or acquisition plans, he said he was open to the idea and would like to look for a bank with a strong network in the North or the West, where Vijaya Bank did not have too many branches.

''However, as of now, there is nothing concrete on board,'' he added.

Stating the economy was growing at a robust pace, Mr Mallya said Vijaya Bank had achieved a net profit of Rs 111 crore during the first quarter of 2007-08.

It was hoping to close the year with a net profit of Rs 450 crore as compared to Rs 331 crore last year.

It was aiming at a total business of Rs 76,000 crore, comprising deposits of Rs 45,000 crore and advances of Rs 31,000 crore.

Last year, the bank had done a total business of Rs 64,477 crore, comprising deposits of Rs 39,742 crore and advances of Rs 24,735 crore.

If inflation remained contained to less than 4.5 per cent, lending rates may come down by a quarter or half point in two to three months time, he said.

Stating public sector banks had been able to withstand competition from foreign and new generation banks, Mr Mallya said more than 70 per cent of the banking transactions were still done through the public sector banks as the people, particularly NRIs, had more faith in them.

UNI