Vijaya Bank to raise Rs 500 cr

Vijaya Bank plans to raise Rs 500 crore by March-end to boost its capital adequacy ration (CAR).

This is expected to improve the bank's CAR to over 12 per cent from present 11.50 per cent.

Speaking to reporters after opening the bank's new facility at Rajajinagar in Bangalore, Chairman and Managing Director of the bank Prakash Mallya said, "Rs 500 crore to be raised will be done to beef-up lower tier II capital of the bank."

A final decision will be taken in a day or two. The bank's board earlier this month had approved raising Rs 1,700 crore but due to tight monetary conditions in the country, the entire amount would be raised in staggered manner, he added.

For financial year 2006-07, the bank has set a business target of Rs 60,000 crore, of which Rs 36,000 crore by way of deposits and Rs 24,000 crore through advances.

The bank is to increase the coverage of core banking solution (CBS) to a minimum of 65 branches from present 40 branches by the end of FY to strengthen the generation of MIS through CBS system to economise the manpower.