Vijaya Bank plans Dubai, HK branches

The Karnataka-based Vijaya Bank plans to open full-fledged branches in Hong Kong and Dubai by the end of this fiscal, marking its first overseas foray.

This apart, it also plans to open a representative branch in China by March 2008.

The bank is expected to get the RBI's clearance shortly, said Prakash P Mallya, chairman and managing director. After getting the clearance, the bank would seek permission for another branch in Malaysia, possibly next fiscal, he said.

Backed by a 161 per cent growth in net profit in 2006-07, the banks is looking to cross Rs 1 lakh crore business mark by the end of March 2009.

"Increase in credit level, prime lending rate and non-interest income from foreign exchange and fee-based income are going to be future growth drives," said Mallya.

He also said the bank may marginally reduce interest rate on one-year term deposits to meet its credit requirement.

Further, the bank plans a business of Rs 76,000 crore this fiscal. It expects a 27 per cent growth in credit and 23 per cent increase in deposits in the year.

It also plans to increase its number of branches from the present 983 to 1,050 by March 2008. It will extend core banking services to 675 branches, covering 90 per cent the bank's total business.

Recently, the bank raised Rs 200 crore through subordinate bonds. Earlier this year, the bank had raised Rs 300 crore by means of upper tier II bonds.

With a headroom of around Rs 1,800 crore, the bank may further raise Rs 300 crore through bonds later this year, said Mallya.