The Bangalore-based Vijaya Bank will merge its housing subsidiary VIBANK Housing Finance Ltd (VHFL) with itself. Bank has received concurrence of the National Housing bank (NHB), which holds 12 per cent stake in the subsidiary.
Vijaya Bank is in the process of appointing a consultant to assist in working out the modalities for integration of the subsidiary.
VIBANK had sanctioned loans worth Rs 63.10 crore and disbursed Rs 57.14 crore during 2002-2003. The cumulative sanctions and disbursements amounted to Rs 243.84 crore and Rs 230.38 crore, respectively.
The capital adequacy ratio of the subsidiary stood at 20.59 per cent as on March 31, 2003, which is well above the stipulated norm of 12 per cent.
On the other hand the housing finance under Vijaya Bank disbursed loans of Rs 481.83 crore during 2002-03.
During last year the Bank accorded greater thrust to housing finance and fine tuned its scheme to make it more customer friendly. The bank celebrated housing loan fortnight and also introduced a golden jubilee housing finance scheme.
