Vijaya Bank biz up 29% during Q2

Bangalore-based Vijaya Bank has recorded a 28.92 per cent growth in total business at Rs 132,106 crore for the second quarter-ended September 2011 compared to the same quarter last year.

The aggregate deposits of the bank have shown a year on year growth by 24.15 per cent to Rs 77,802 crore, while advances have gone up by 36.43 per cent to Rs 54,304 crore. The CD ratio improved to 69.80 per cent as against 63.52 per cent in the year ago period.

“We have crossed another milestone in our total business during the second quarter. By the present indications, we are well on course to achieve the target of Rs 1,44,000 crore business mark by the end of this fiscal,” H S Upendra Kamath, CMD, said.

Priority sector advances of the bank aggregated to Rs 16,019 crore, posting a year on year growth of 10.3 per cent. Within priority sector advances, agricultural loans were of the order of Rs 5,770 crore, up by 25 per cent. Loans to MSME sector clocked 18.80 per cent growth to reach Rs 7,453 crore. Educational loan portfolio stood at Rs 645 crore, a growth of 9 per cent, while loans to weaker sections stood at Rs 3,831 crore, up by 5.50 per cent.

Loans to women beneficiaries improved to Rs 2,885 crore from Rs 2,553 crore, showing a growth of 13 per cent. However, housing loan portfolio has shown a decline of 7.01 per cent to Rs 4,137 crore.

During the second quarter, Vijaya Bank opened 50 new branches including four micro finance branches taking the total number of branches to 1,250. It opened 86 new ATMs and financial inclusion resource centre and financial literacy as well as credit counselling centres in Mandya, Haveri and Dharwad. Financial inclusion branches were opened in Dakshina Kannada and Chitradurga.

The bank will be launching non-life insurance distribution and mutual funds sales during the third quarter to drive up its non-fund based income, Kamath added.