Vijaya Bank may raise tier-II capital

Vijaya Bank may look at raising tier-II capital of Rs 300-500 crore this year, according to a top official of the bank.

“We are adequately capitalised now. If we need, we might raise funds of about Rs 300 crore to Rs 500 crore as tier-II bonds,” Mr H.S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank, told Business Line .

As on June 30, the bank's capital adequacy ratio stood at 13.04 per cent.

On the retail side, the bank plans to start an inter-bank mobile remittance facility soon, he said.

“We do have intra-bank mobile remittances now, but soon we will come out with inter-bank mobile remittances.” Vijaya Bank will also come out with gift and travel cards for customers. Plans are also afoot to set up a capital market cell in Mumbai, he added.

Despite a 22 per cent growth in advances, the bank has seen a marginally lesser growth on the retail side, which grew at about 10 per cent.

However the housing loan segment saw a de-growth of 6.96 per cent. “We want to close the year with a 20 per cent retail advances growth, despite the first quarter being not good for us. Property prices and interest costs prove to be a challenge,” said Mr Kamath, adding that the bank has set up 15 retail asset processing hubs so far, and would add five more by the end of this year.

He was confident of achieving the credit growth, as there was a “significant wage inflation too and corporates showing good profits”.

The bank has conducted about 30 housing loan melas so far, he said. “We have so far given in-principle sanctions of Rs 45-50 crore,” said Mr Kamath.

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