Vysya To Spend Rs 60 Crore On Tech Upgrade

Vysya Bank is spending Rs 60 crore on technology upgradation in the current year. Of this, it is spending Rs 20 crore on branch networking and Rs 25 crore on ATMs, Bart Hellemans, the deputy managing director of the bank, said.

So far, the bank has completed networking 100 branches out of a total 480. This year, the bank will network another 100 branches.

"At present, we have 19 ATMs, and by the end of March 2003, we will increase it to 58," Hellemans said.

By March 2002, the bank's non-performing assets (NPAs) were at 4.6 percent tantamount to Rs 230 crore in actual terms.

 

Vysya plans to reduce it to 3.5 per cent in the current financial year. By March 2002, the banks non performing assets (NPAs) were at 4.6 percent tantamount to Rs 230 crore in actual terms.

Vysya plans to reduce it to 3.5 per cent in the current financial year.

Nearly 800 employees have opted the voluntary retirement scheme (VRS) of the bank. "We settled 350 employees cases by March 2002, and the remaining 450 cases will be settled by this fiscal year. We have no plans to extend the VRS further," Helleman said.

Meanwhile, the ING group will increase its stake in Vysya Bank to 49 per cent soon. "We are waiting for the Reserve Bank of India (RBI) clearance for it, and once we get the signal, ING will take another 29 per cent shares from GMR Vasavi group," Helleman said. At present, ING has a 20 per cent stake in Vysya.

Last fiscal, the bank has earned a net profit of Rs 68.75 crore, while in the current year it will be more, he said.