Vijaya Bank expects Rs 700-cr infusion by December

Vijaya Bank expects Rs 700 crore funds from the government by December to recapitalise the bank, Chairman and Managing Director Albert Tauro said today.

“We expect that by the third quarter, and by that I mean by December, the bank should be recapitalised,” Tauro told reporters on the sidelines of a function to launch the bank’s mobile banking services.

Tauro said the bank’s Capital to Risk (Weighted) Assets Ratio (CRAR) is currently at 13.15 per cent. Despite infusion of funds by the government, the bank’s CRAR will remain 12.0-12.5 per cent.

He said the bank does not have any immediate need for additional capital.

Tauro said the bank’s credit growth is estimated around 10 per cent on year during July-September, while deposit growth during the quarter is seen at 13-14 per cent.

The bank expects to see a 20 per cent growth each in credit as well as deposits during the current financial year to March.

Separately, Executive Director SC Kalia said the bank expects to make reasonable treasury profits during July-September.

“There was some pressure in the first quarter, there was a lot of write-back. But we should be making reasonable gains from treasury in the second quarter that ends tomorrow,” Kalia said.