Date:10/04/2006 URL: http://www.thehindubusinessline.com/2006/04/10/stories/2006041000881400.htm

Back Vijaya Bank may not achieve biz target

Our Bureau

MR PRAKASH P. MALLYA

Bangalore , April 9

Vijaya Bank is expected to fall short of its business target for the last fiscal year.

Speaking to Business Line, Vijaya Bank's Chairman and Managing Director, Mr Prakash P. Mallya, said, "Last year, we had a gross business of Rs 44,700 crore." The bank's target was Rs 47,000 crore and an internal target of Rs 50,000 crore.

The shortfall in business, Mr Mallya said, was mainly on account of the inability to raise low-cost deposits. "High-cost bulk deposits were available, but we decided to remain prudent," he added.

Mr Mallya, however, said the bank was aiming to achieve the Rs 50,000-crore-mark by October when it would be celebrating its diamond jubilee.

Vijaya Bank would focus on farm and retail lending to push up business.

Cautious on home loans

Housing loan constituted about 20 per cent of the bank's retail lending. But in this sector, the bank has decided to remain cautious, he said. This was especially after the RBI had cautioned banks to exercise discretion in real estate exposures.

The bank, he said, had targeted 1,000 branches last year, but was able to open only 923 branches.

Representative offices

In addition, the bank also hoped to open two new representative offices in Dubai and Hong Kong.

On the interest rate trend, Mr Mallya said with the liquidity position having eased he did not see the rates hardening.