The Hindu Business Line : Vijaya Bank may merge housing fin arm with itself

VIBANK Housing Finance Ltd (VHFL) is likely to be merged with Vijaya Bank in a couple of months' time. According to the VHFL Managing Director, Mr M.R. Adyanthaya, Vijaya Bank has decided to merge VHFL with itself to create considerable synergy in operations. The Reserve Bank of India has granted necessary permission for merging VHFL with Vijaya Bank.

Following the merger, more branch outlets will be available by conversion of the existing VHFL branches to full-fledged branches. This will help in servicing variety of products of the bank, he said.

Mr Adyanthaya was here to participate in the inauguration of the new premises of VHFL's Mangalore branch.

Sources in VHFL told Business Line that merger might take place in two to three months as some legal procedures have to be followed before merging the housing finance company with the bank.

Asked if there would be a hike in housing loan interest rates, Mr Adyanthaya said, "not in near future."

Mr K. Sadananda Hegde, Assistant General Manager, Regional Office, Vijaya Bank, Mangalore, inaugurated the new premises of Mangalore branch.

VHFL registered a profit before tax of Rs 73.39 lakh in the first quarter of this financial year. It disbursed loans to the tune of Rs 11.10 crore during this period.

In the financial year 2003-04, it registered a profit before tax of Rs 3.81 crore as against Rs 3.25 crore in the previous financial year.

VHFL, which was established in 1995, has enabled the construction of 8,842 houses. It has three branches in Bangalore at M.G. Road, J.P. Nagar and R.T. Nagar, and one each in Mangalore, Hubli, Mysore, Mumbai, Hyderabad, Pune and Chennai.

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