Vizag Co-op Bank announces 12% dividend

The Visakhapatnam Co-operative Urban Bank (VCB) has announced 12 per cent dividend including 6 per cent interest on share capital for the year 2005-06. VCB earned a net profit of Rs 3.41 crore for the same period.

As part of the dividend, the bank would distribute about Rs 1.58 crore among the shareholders, Narasimha Murthy, secretary, VCB, said. For the year 2004-05, VCB paid 10 per cent dividend. The bank's 91st annual general body meeting was held here on September 24.

The bank has hiked interest rates on deposits by 0.5 to 1 per cent with effect from September 15. Deposits for the year 2005-06 was up 7.24 per cent, while the share capital increased by 23.18 per cent compared with the preceding year.

Murthy said the bank was aiming to mobilise about Rs 35 crore new deposits. It is targeting to achieve Rs 510 crore business (Rs 296 crore deposits and Rs 214 crore advances) by the end of this fiscal as against Rs 446 crore (Rs 216 crore deposits and Rs 185 crore advances) business as of March 2006.