Bbl Intent Spurs Vysya

The share price of the Bangalore-based Vysya Bank today breached the 52-week high and was locked at Rs 185 on the BSE, at the 20 per cent maximum permissible upper limit. The price surge was on the back of ING arm Bank Brussels Lambert's intention to raise its holding in the bank.

Bank Brussels has said that it proposes to hike stake in the bank with the object of acquiring management control. Currently, G M Rao of the GMR group exercises control over the bank with a 28 per cent stake. International Finance Corporation holds 10 per cent.

For the quarter ended December 2001, Vysya Bank posted a net profit of Rs 22.40 crore, a rise of 145 per cent compared to the corresponding period last year.

The private bank has, according to a long-term policy, divided its business into five strategic areas - corporate, commercial, retail, rural and treasury. The bank's focus is on medium-to-small clients and traders.

In a bid to expand its business, the bank has initiated a drive to rationalise its branch network. It will increase the number by 20 to 500 this year. Much of the expansion will be undertaken in the north.

The bank proposes to bring down its bad loans to 3.5 per cent in FY 2002 from 4.7 per cent in FY 2001.