Vijaya Bank plans acquisition

Vijaya Bank's plans to acquire a bank may materialise by 2009. The bank is looking at acquiring a bank with network in the western or northern parts of the country as it aims at strengthening its position in these regions.

The bank is not yet to set its eyes on any bank. According to the managing director and chairman of the bank it could be a public sector bank or even a private bank.

Vijaya Bank, with 962 branches, is looking at strengthening its position in the western and northern parts of India and for that the bank is planning to acquire an existing bank.

Prakash Mallya, CMD said the acquisition could happen by 2009 or during 2009.

When asked if the management of the bank has zeroed in on any bank, Mallya said, "We are yet to identify any bank. But it can be a public sector bank or a private bank. It could be a bank based in the northern region or the western region of the country.

The bank could be a medium to large bank. The only condition we have is that the bank which we acquire must have a well-placed network in both these regions. The year 2009 will see a lot of changes as it is also the election year.

"The bank is also looking at venturing overseas and has applied for the Reserve Bank of India's (RBI) clearance. "We want to enter China, Hong Kong and Dubai, and for that we have applied for RBI's approval. As soon as we get the approval we will enter these markets." However, Mallya did not specify any timeframe for the bank's plans to foray into the international market.

On the company's targets this year, Mallya said, "The bank is looking at a business of Rs 60,000 crore by March 2007. The bank will look at deposits of Rs 36,000 crore and advances of Rs 24,000 crore. However, we have set a target to achieve a Rs 1,00,000 crore business by 2010."

Moreover, the bank plans to open more branches across the country.

"We have 962 branches across the country and we plan to widen this network to become a 1000 branches bank by the end of this year."

Prakash Mallya, who inaugurated another branch in Ahmedabad in Krishnanagar area here said. He added that the bank's prime focus will remain the tier two and tier three cities, and especially the suburban regions.

Mallya also said that by 2009 all branches of the bank will be fully-computerised including the rural branches.