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Mr Prakash P. Mallya

Our Bureau

Mangalore, March 29 Vijaya Bank, which touched a business level of Rs 78,600 crore on March 28, is hopeful of reaching the target of Rs 1 lakh crore business by the end of March 2009.

Speaking on the sidelines of a function to inaugurate a branch at Bajpe in Mangalore taluk on Saturday, Mr Prakash P. Mallya, Chairman and Managing Director of the bank, said: “Since we have reached Rs 78,600 crore business, I have a gut feeling that we will reach Rs 1 lakh crore business by March 2009.” The bank has registered a year-on-year growth of 25 per cent in deposits and 26 per cent in advances.

Asked about the bank’s strategy for collecting bulk deposits, Mr Mallya said the bank has stayed away from the rat race of collecting bulk deposits during February and March.

“The strategy we adopted was to collect deposits at reasonable rates in December 2007 and January 2008. We have not taken any deposits at more than 10 per cent interest.

“We have taken only two deposits at 10 per cent and all others are below 9.5 per cent,” he said.

Mr Mallya hoped that this strategy will help the bank show better net profit. The bank has also recorded a good growth in credit offtake at 26 per cent. “We have a balanced growth in all sectors of credit,” he said.

The bank will introduce a reverse mortgage scheme for senior citizens in April for which the board has already given clearance.

Mr Mallya said the bank has studied the reverse mortgage scheme of other banks and tried to fine-tune them for its scheme.

The bank will also introduce an online trading facility for its customers in April. The bank is tying up with IDBI Capital Markets Services Ltd for this purpose.

Under the arrangement, IDBI Capital will provide manual and technical support to establish the services.

IDBI Capital will establish online trading desks at the bank’s designated branches and offices.

With this, the bank’s customers can access these desks to sell or buy stocks and securities.

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