Vijaya Bank aims to double business by next fiscal end

Vijaya Bank is seeking to double its business to Rs 43,000 crore by March-end 2005 even as it is open to "acquiring a North-based bank provided it comes at the right price and has the right products", according to chairman and managing director, M S Kapur.

The Bangalore-headquartered bank has strong presence down South and an acquisition could enhance its presence in the Northern and Western parts of the country.

"We are open to acquiring a North-based bank. The Northern and Western parts of India generate relatively more business compared to other parts. Hence, the keenness on taking the inorganic growth route via acquisition," said Kapur, after announcing the details of Vijaya Bank's proposed Rs 240 crore initial public offer (IPO) at a press meet.

The bank is slated to tap the market with a public issue of 10 crore equity shares of Rs 10 each for cash at a premium of Rs 14 aggregating Rs 240 crore. The IPO will be open between October 9 and 17.

Vijaya Bank has logged a 30 per cent growth in advances in the financial year so far as against 27 per cent last year even as retail disbursements vaulted by Rs 1,200 crore in the financial year so far as against Rs 700 crore in the whole last financial year, said K Rathnakar Hegde, general manager, said.

"We are holding excess Statutory Liquidity Ratio (SLR) securities to the tune of Rs 1950 crore. Incremental investment is yielding only around 5.6 per cent. Hence, the emphasis on advances," he said.

The bank has slapped notices on 3900 borrowers aggregating Rs 360 crore under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Act, 2002 (SARFAESI).

"In 90 per cent of the cases, where we have seized assets, borrowers have come to the table for a compromise. We have made cash recoveries of Rs 120 crore in this financial year so far as against the target of Rs 180 crore. Last year we had made recoveries to the tune of Rs 160 crore," said Kapur.