The Hindu Business Line : Vijaya Bank to exit venture with Principal

The bank had joined a three-way joint venture along with Punjab National Bank, who between them had a stake of five and 30 per cent respectively with Principal holding the majority stake of 65 per cent

Mr Prakash P. Mallya, Chairman and Managing Director of Vijaya Bank, said that PNB would also be coming out of the joint venture. Vijaya Bank would continue to explore other options to tap the vast opportunities in the flourishing insurance business.

Mr Mallya did not disclose the timeframe of the bank’s separation from the business.

On the prevailing uncertainties of the economy having an impact on the banking industry, Mr Mallya expressed optimism about Vijaya Bank achieving its projected overall business growth of Rs one lakh crore during the current fiscal.

Q1 under pressure

With margins under pressure due to both the equity and treasury market treading on negative path, the bank may not be able to achieve higher profits in the first quarter. Without giving specific numbers, he said the profit levels of first quarter could be under pressure, adding it might be difficult to maintain at the level of last year’s Q1.

He, however, sounded positive about credit offtake and said there was an increase of Rs 3,000 crore in advances during the first quarter of the current year. Advances grew 30 per cent last year to Rs 34,000 crore.

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