Bangalore-headquartered Vijaya Bank would get Rs 500 crore in first tranche under the Centre’s recapitalisation package in a couple of months, said executive director SC Kalia.
The government had approved a Rs 1,200-crore fund infusion for maintaining the bank’s capital adequacy ratio at the mandatory 12 per cent.
Speaking to the media here on Monday, he said the recapitalisation would continue till 2011 and would aid in raising tier-II capital.
The bank is also looking at alternative revenue channels since it is exiting all joint ventures selling insurance products. “We have in-principle decided to exit all the JVs selling insurance products after the Insurance Regulatory and Development Authority had disallowed the banks to be sub-brokers.” Kalia said they would consider forming joint ventures or float own insurance companies at a later point.
The bank would focus on fee-based services and launch mobile banking services by this March. It is targeting to have 1,100 branches and introduce its V-Payroll scheme for tapping the salary account segment by March.
Kalia who was in Hyderabad to review the performance of the bank, said Andhra Pradesh accounted for seven per cent of its total business, which stood at around Rs 90,000 crore as of December 31, 2008. The bank plans to open 14 branches including 12 in non-metros in the state by March end.
