The Hindu Business Line : Vijaya Bank may go slow on lending

New Delhi April 20 Vijaya Bank has decided to slow down in the current fiscal its scorching pace of credit disbursal following the Union Finance Minister, Mr P. Chidambaram's directive to public sector banks (PSBs) to moderate credit growth.

In the financial year 2006-07, Vijaya Bank's advances grew 45 per cent to Rs 24,705 crore from Rs 17,060 crore in the previous year.

As many as four PSBs, including Vijaya Bank, recorded over 40 per cent credit growth in the financial year 2006-07. "I want to consolidate my portfolio this fiscal. Clearly, the 45 per cent level of growth rates of last year will not be seen this fiscal. I am looking at 27-28 per cent growth rates in advances," Mr Prakash P. Mallya, Chairman and Managing Director, Vijaya Bank, told Business Line here.

He added that the bank would be "very selective" in providing credit to the commercial real estate sector.

Vijaya Bank's exposure to commercial real estate grew 124 per cent to Rs 1,989 crore as on March 2007 from Rs 889 crore as on March 2006.

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