Vijaya Bank to get Rs 700 cr from govt by Dec

Vijaya Bank today said it does not have any more fund raising plan during the year as it is expecting Rs 700 crore from the government as recapitalisation in the third quarter of the current fiscal.

"We have already received Rs 500 crore and another Rs 700 crore would be received in the third quarter of the year," Vijaya Bank Chairman and Managing Director Albert Tauro said here today.

The bank was expecting credit offtake to pick up in this quarter, which would help the bank to register a advance growth of 20-22 per cent during the year.

The total business of the bank is Rs 63,000 crore.

Speaking about the interest spread, Tauro said the net interest margin has improved to 2.38 per cent against 1.6 per cent in June 2008.

"We are targeting 2.5 to 2.6 per cent for the full year," the bank chief said.

Tauro said the bank is in talks with Principal for off loading 5 per cent of its stake in the Principal PNB Life Insurance company and is also negotiating with several insurance companies for referral bancassurance business.