News: Vijaya Bank to open overseas branches

(UNI 30/11/2006) Bangalore - Public Sector Vijaya Bank is awaiting clearance from the Reserve Bank of India to open overseas branches in Dubai and Hong Kong and a representative office in China.

Disclosing this to newsmen here, after inaugurating the new premises of the Bank's Malleswaram Branch, Vijaya Bank Chairman and Managing Director Prakash P Mallya said the new offices could be opened during next year. The Bank had a target of total business crossing Rs 60,000 Crores as against the present Rs 52000 Crores during 2007, he added. Answering a question, he said the Bank was also exploring possibilities of striking strategic alliances with other Banks for its back end operations.

The Bank was also thinking about acquisition of a Bank which had its strong presence and network in North and Western parts of the country. However, he declined to divulge details saying that efforts would begin only during next year. On the much talked about consolidation of various Banks, he endorsed the views of Finance Minister P Chidambaram and said it was very much needed as the country had 27 Public Sector Banks and the number of branches exceeding over one lakh.

Too many branches posed a 'unwieldy' picture, he noted. He said the Bank had introduced Core Banking Solution in 380 branches and would ensure coverage of exceeding 500 branches by 2007. The total percentage of business done in CBS then would cross 85 per cent, he added. The total business of Malleswaram branch, started in 1958, had crossed over Rs 100 crores comprising Rs 70 Crores deposits and Rs 32 Crores advances. The Bank had over 10,000 accounts of various categories.