Vijaya Bank seeks Rs 5K-cr from Centre under capital infusion

Vijayawada: South-based lender Vijaya Bank has sought Rs 5,000 crore from the Centre under the capital infusion plans.

Vijaya Bank Managing Director and Chief Executive Kishore Sansi told reporters here, "We have submitted a proposal to the Union Finance Ministry seeking Rs 5,000 crore under capital infusion."

The bank would also issue bounds under Tier 2 capital to collect Rs 3,000 crore, he said on the sidelines of inauguration of new premises of regional office.

The present gross NPA of the bank is 3.90 per cent which is lowest among public sector banks and the target is to reduce it to 3 per cent by March next year. The net NPA of the bank at present is 2.84 per cent and it be brought down to 2 per cent by next March, Sansi added.

Sansi further said the Cash-Deposit ratio increased from 63.79 per cent in 2014 to 70.59 per cent in 2015 and the net interest margin improved from 1.88 per cent in 2014 to 2. 30 per cent in 2015.

The CEO said the bank recorded over 30 per cent growth in operating profit by the end of first half of this financial year at Rs 399 crore.

He said total business by September 2015 crossed Rs 2,10,000 crore and in the fiscal itself it opened 162 branches and another 88 branches would be opened by March next year.

Earlier, Sansi met Andhra Pradesh Chief Minister N Chandrababu Naidu and exchanged pleasantries.

Sansi said the lender has promised to be partner in the overall growth of Andhra Pradesh.

He said the Chief Minister asked them to provide more funds for agriculture and industries.