Vijaya Bank eyes acquisition

The Bangalore-based Vijaya Bank is planning to acquire a bank in northern/western India to expand its reach, according to Mr Prakash P. Mallya, its Chairman and Managing Director. “We are definitely looking at inorganic growth. A north-Indian bank has in fact approached us albeit there are no concrete developments thereafter,” Mr Mallya said. The bank, which had done a total business of Rs 73,000 crore as on December 31, 2007, is aiming at closing the current fiscal with a total business of Rs 76,000 crore and a net profit of Rs 450 crore. “We will touch one lakh crore business by 2009-10,” he said. The bank has 1,008 branches across the country and would take the number to 1,050 by the end of March, 2008. On the interest rates, Mr Mallya said there were no plans for a reduction. “There are certain banks which are charging higher rates. Most of them are now announcing a cut. We cannot do it,” he said. Vijaya Bank’s interest rate on housing loans is currently in the range of 9.2-10.75 per cent, he added.