Vijaya Bank to raise Rs.1,300 cr via bonds in FY18

Public sector lender Vijaya Bank said on Sunday that its board has approved raising Rs.1,300 crore via bonds in the current fiscal under the Basel III global capital adequacy norms.

”...the board has accorded its approval for raising Rs.1,300 crore by way of additional tier 1 bonds under Basel III for the financial year 2017-18 (revised additional capital requirements amounting to Rs.1,000 crore in addition to Rs.300 crore already approved by the board),” the bank said in a BSE filing.


Source : Economic Times

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Vijaya Bank MD gets Skoch award

Kishore Sansi, Managing Director and CEO of Vijaya Bank, has been conferred the ‘Personality of the Year’ award by Skoch Consultancy Services. The award is part of the ‘Skoch Banking and Financial Leadership’ series. Past recipients of the award include C Rangarajan, Dilip Parekh and Nandan Nilekani.


Source : Thehindubusinessline

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Vijaya Bank net up 43% in Q3

Vijaya Bank reported a 43 per cent increase in net profit at Rs.53 crore in the third quarter ended December 31, 2015, as against Rs.37 crore in the year-ago quarter.

The Bengaluru-headquartered public sector bank logged a 33 per cent year-on-year (y-o-y) increase in net interest income at Rs.738 crore from Rs.555 crore in the year-ago period. According to a bank statement, fee-based income increased by 31 per cent to Rs.122 crore (Rs.93 crore in the year-ago period).

Net interest margin improved to 2.44 per cent from 1.88 per cent, it added.

Gross non-performing assets and net non-performing assets in percentage terms deteriorated to 4.32 per cent (from 2.92 per cent) and 2.98 per cent (1.89 per cent), respectively, as per the financial results filed with the BSE. Shares of the bank closed at Rs.34.30 apiece, up 15.88 per cent over the previous close on the BSE.


Source : Thehindubusinessline

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Vijaya Bank opens Retail Assets Processing Centre at Ahmedabad

Vijaya Bank plans to increase its branch network in the Ahmedabad Region by adding three more branches during this financial year. The bank plans to scale up its business from Rs. 5,191 crore as of September 2015, to cross Rs. 7,000 crore by the end of the fiscal.

At the launch of Retail Assets Centralized Processing Centre (RACPC) at the Regional headquarters at Ahmedabad, A Murali Krishna, Deputy General Manager and Regional Head, Vijaya Bank, informed that the bank plans to more than double its home loan advances from Rs. 38 crore last year to Rs. 75 crore this fiscal. The average ticket size for home loan at Ahmedabad Region is Rs. 14 lakh.

The Ahmedabad Region has nearly 100 per cent credit deposit ratio. In its total advances portfolio of Rs. 2,500 crore currently, corporate advances stands at Rs. 1,200 crore. Retail segment advances stand at Rs. 347 crore, which the bank expects to increase to Rs. 450 crore.


Source : Thehindubusinessline

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Vijaya Bank Q2 net drops 20% to Rs. 115 cr

Vijaya Bank on Friday reported a 19.80 per cent fall in its July-September quarter net profit at Rs. 115.29 crore, impacted by higher provisions.

The bank had registered a net profit of Rs. 143.75 crore in the corresponding quarter last year.

Total income of the bank stood at Rs. 3,202.89 crore for the quarter ended September 30, 2015 from Rs. 3,253.75 crore in the corresponding quarter a year ago.

“Even though there is increase in the operating profit, but because of the increased provision net profit has come down. This quarter we had to make a provision of Rs. 283 crore, out of that Rs. 272 crore was only on account of NPAs. Because of the increased provision for NPAs, net profit has come down,” Vijaya Bank MD & CEO Kishore Sansi told reporters here.

“Net slippage is around Rs. 600 crore in this quarter and most of it has come from infrastructure and large corporates,” he added.

The bank’s gross NPA ratio as on September 30 was 3.98 per cent against 2.85 per cent during the corresponding period last year, while the net NPA stood at 2.84 per cent as against 1.88 per cent last year.

The provision coverage ratio was at 58.28 per cent at the end of September quarter.

Net interest income for three months ended September 2015 increased to Rs. 692.55 crore from Rs. 578.70 crore for the corresponding period last year, up by 19.67 per cent.

Other income of the bank increased from Rs. 169.85 crore in the second quarter of last fiscal to Rs. 193.93 crore for the corresponding period this year, up by 14.18 per cent.

CASA of the bank increased from Rs. 23,348 crore as of September 30, 2014 to Rs. 25,311 crore this year, up by 8.41 per cent. The percentage of CASA deposits also improved to 20.53 per cent from 18.95 per cent.

Responding to a question on plans to raise capital, Sansi said “We had requested government of India to infuse about Rs. 400 crore of capital. They may take a decision either by end of this quarter or early next quarter, but any case we have a plan to go in for tier-I capital of about Rs. 200 crore and tier-II of about another Rs. 200 crore in the coming quarter.”

“Our objective is to reach a figure of about 11.5 per cent CRAR by March 2016,” he added.

The bank said its total number of branches increased to 1,755 as on September 30 this year, while total number of ATMs stood at 1,496.


Source : Thehindubusinessline

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Vijaya Bank cuts base rate to 9.65%

Vijaya Bank has announced a reduction in its base rate by 20 basis points with effect from October 8 pursuant to the cut in repo rate announced by RBI last week. Accordingly, the revised base rate will be 9.65 per cent per annum as against the existing rate of 9.85 per cent, the Bengaluru-headquartered public sector bank said in a statement on Saturday. 

Since June 2015, the Bank has so far effected 60 bps reduction in its base rate. With the latest reduction in base rate, it is expected that the sluggishness in credit offtake shall ease and poised to grow further. Further, the retail consumer front shall stand to benefit, especially housing and vehicle segment, the bank said.


Source : Thehindubusinessline

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Vijaya Bank’s new non-exec chairman

Gopalakrishnan Narayanan has joined Vijaya Bank as part-time non-official director and non-executive Chairman. Narayanan, who served last as the Executive Director of Indian Overseas Bank and superannuated in 2009, has vast experience spanning over 38 years in the Indian banking sector, Vijaya Bank said in a statement. Narayanan also served as Managing Director of Centrum Capital and Managing Director of Securities Trading Corporation of India previously.


Source : Thehindubusinessline

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Vijaya Bank reduces base rate by 25 bps

Vijaya Bank will revise its base rate with effect from June 1.

The bank in a release said it has reduced base rate by 25 basis points to 10 per cent per annum.

The revised rates will be applicable to housing loans also.

Due to reduction in rates, equated monthly instalments related to retail loans including housing loans shall come down proportionately.


Source : Thehindubusinessline

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Vijaya Bank ties up with SBI Life

Vijaya Bank has tied up with SBI Life Insurance to launch the social security scheme — Pradhan Mantri Jeevan Jyoti Bima Yojana.

The memorandum of understanding was signed by Kishore Sansi, Managing Director and CEO of Vijaya Bank and Arijit Basu, Managing Director & CEO of SBI Life Insurance, in the presence of Executive Directors of Vijaya Bank KR Shenoy and BS Rama Rao, a press release said.


Source : Thehindubusinessline

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Vijaya Bank rolls out 2 debit cards

Vijaya Bank has launched two debit card in partnership with VISA and RuPay targeting the high-income group in urban localities. The cards were launched by the bank’s Managing Director and CEO Kishore Sansi in Bengaluru.

The Visa Platinum card comes with an international EMV chip with enhanced security features and has daily cash withdrawal limits of Rs50,000 and shopping limit of up to RS1 lakh a day at merchant outlets. The RuPay Platinum card comes with similar facilities but is valid only in India. Launching the new cards, Sansi reiterated the bank's commitment to providing innovative facilities.


Source : Thehindubusinessline

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Higher treasury income boosts Vijaya Bank Q3 net

Revision of base rate and higher treasury income boosted Vijaya Bank’s profits to Rs.37.40 crore in the third quarter of the current fiscal against Rs.11.39 crore in the same period last year.

The bank’s total income increased 14.89 per cent to Rs.3,302.67 crore (Rs.2,874.60 crore). Kishore Kumar Sansi, Managing Director and CEO, told reporters that the bank’s treasury income touched Rs.158 crore (Rs.16 crore) and revision of base rate protected interest margins. The bank made Rs.328 crore provision for NPAs.

Gross NPA stood at Rs.2,311 crore (Rs.1,953 crore). The percentage of gross NPA ratio stood at 2.92 per cent compared with 2.67 last year. Net NPA was at Rs.1,476 crore (Rs.1,131 crore). The percentage of net NPA ratio stood at 1.89 per cent as against 66.08 per cent last year.

Net interest income increased 7.19 per cent to Rs.1,668.98 crore from Rs.1,557.04 crore and net interest margin (NIM) was at 1.88 per cent (1.90 per cent).

Total deposits of the bank grew 8.12 per cent to Rs.2,03,187 crore (Rs.187,935 crore). Gross advances increased 8.26 per cent to Rs.79,136 crore (Rs.73,100 crore).


Source : Thehindubusinessline

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Vijaya Bank opens 13 lakh accounts under Jan Dhan scheme

Vijaya Bank has opened 13 lakh accounts under the PMJDY (Pradhan Mantri Jan Dhan Yojna), according to Kishore Sansi, Managing Director and Chief Executive Officer of the bank.

Addressing presspersons in Mangaluru on Thursday evening, Sansi said the bank had surpassed its targets. It had identified the households to be covered much before the timeline set by the Finance Ministry. Rupay cards were issued to 72 per cent of customers, he said.

On the number of zero-balance accounts, he said 54 per cent of the accounts opened under PMJDY came under this category. However, the bank was able to get Rs38 crore as deposits from PMJDY accounts.

To a query on the plans to make PMJDY accounts operational, Sansi said the bank was expecting all the subsidies of the Government to be routed through these accounts. In the next 12 months, 80-85 per cent of all accounts opened under PMJDY would be operational, he said.


Source : Thehindubusinessline

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Vijaya Bank cuts term deposit rates

Vijaya Bank has cut its term deposit interest rates for different maturity periods. The reduction ranges from 0.1 per cent to 0.25 per cent and will come into effect from Friday (January 23), the bank said in a statement. The Vijaya Bank scrip ended flat at the BSE on Thursday.


Source : Thehindubusinessline

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Vijaya Bank event at Pollachi

Vijaya Bank organised the Pradhan Mantri Jan Dhan Yojana programme at Pollachi. KR Shenoy, Executive Director of Vijaya Bank, distributed Rupay Cards and Pass Books to the beneficiaries. The programme was attended by over 200 beneficiaries and large number of people from nearby villages, said a Vijaya Bank statement. Shenoy explained various important features of the scheme to beneficiaries. A short film on Pradhan Mantri Jan Dhan Yojana Scheme in the local language was screened to create awareness.


Source : Thehindubusinessline

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Vijaya Bank’s equity capital mop-up plan on track: CMD

Vijaya Bank is confident of raising core equity capital of Rs600 crore before the end of the current fiscal, its Chairman and Managing Director V Kannan said.

There is no plan to enhance this capital mop-up during this fiscal although the Centre was open to bring down its stake in public sector banks to 52 per cent.

“As planned earlier, we will only go in for a qualified institutional placement issue so as to mop up about Rs600 crore before end March,” Kannan told BusinessLine. This could bring down the Centre’s stake to 68 per cent from the current level of 74 per cent.


Source : Thehindubusinessline

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Vijaya Bank Q2 net up 5.53% to Rs143.75 cr

Vijaya Bank has reported a 5.53 per cent increase in net profit for the September quarter at Rs. 143.75 crore on higher income. The bank had reported a net profit of Rs. 136.22 crore in September quarter last fiscal.

Total income for the September quarter this financial year was up 15 per cent to Rs. 3,253.75 crore. Interest income grew 11 per cent while the income on investments rose 28 per cent to Rs. 838 crore. The net interest income, the difference between the interest earned and expended, fell marginally to Rs. 578.70 crore.

Vijaya Bank reported a 12 per cent rise in operating profit at Rs. 306.10 crore. Advances for the quarter increased by 9.95 per cent to Rs. 78,540 crore, while deposits grew a tad higher by 14 per cent to Rs. 1.07 lakh crore.

Priority sector advances were up 27 per cent while agri advances grew 16 per cent. The total retail advances increased 17 per cent to Rs. 16,974 crore, said Vijaya Bank Chairman and Managing Director, V. Kannan. Retail lending accounted for 21.61 per cent of the advances, while credit demand from corporates saw a decline. "There is hardly any demand for credit from corporate sector as no new greenfield or brownfield investments are happening," Kannan said.

Kannan said the bank saw fresh slippage of Rs. 731 crore during the quarter, of which Rs. 300 crore pertained to two accounts mainly in the telecom industry that had gone through restructuring.

Provisions for the non-performing assets (NPAs) grew 17 per cent to Rs. 139.28 crore. The gross NPAs increased by 13 per cent to Rs. 2,239 crore over the corresponding last quarter's Rs. 1,980 crore. The Gross NPA ratio edged up marginally to 2.85 per cent from 2.77 per cent in the corresponding previous quarter. Also, the net NPA ratio saw a marginal increase to 1.88 per cent from 1.75 per cent. The provision coverage ratio stood at 63.10 per cent.

The bank raised Rs. 500 crore through Tier II bonds during October. "We are planning to raise about Rs. 600 crore through a QIP issue some time during the January-March quarter," he added.


Source : The Hindu

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Vijaya Bank raises Rs. 500 cr through bonds

Vijaya Bank has raised Tier II capital of Rs. 500 crore through a bond offering to fund its business growth.

In a statement, the bank said the capital was raised by issuing Unsecured Redeemable Non Convertible Basel III Compliant Tier II Bonds with a coupon rate of 9.15 per cent p.a. The issue was fully subscribed and allotment has been made on October 30, 2014, it added.

Vijaya Bank scrip ended marginally higher at Rs. 47.25 on the BSE.

The Rs. 500 crore bond issue is in addition to the proposed equity offering of Rs. 600 crore that the bank is contemplating later this fiscal. The bank has already received an enabling resolution from its shareholders to raise additional equity capital of Rs. 600 crore from the markets.


Source : The Hindu

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Vijaya Bank unveils new e-products

Vijaya Bank has launched a slew of customer friendly e–products including V-Gyansagar, an Android mobile app through which the bank aims to impart financial information to the public to spread financial literacy. The products were launched executive director recently by Chairman and Managing Director V Kannan, Executive Directors KR Shenoy and BS Rama Rao.


Source : The Hindu

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Vijaya Bank may delay fund-raising plan

Vijaya Bank may postpone plans to raise funds for its tier 1 and tier 2 capital requirements, “as the market condition is not really conducive at present”, said V Kannan, Chairman and Managing Director.

The public sector bank is waiting for the opportune time to raise ₹600 crore through Qualified Institutional Placement (QIP) for its tier 1 capital requirement and to mop up ₹500 crore through bonds for its tier 2 capital.

The bank was earlier planning to raise Rs600 crore in October, but it may wait for some more time for the market to be better, he said.

The bank has obtained necessary approvals for the fund-raising plans. Though the bank is adequately funded for the current year, it may have to raise capital for the next year, considering the growth in business, said Kannan.

It hopes to grow 17 per cent this year. He was in town to deliver the P Brahmayya Memorial Lecture, organised by the Institute of Chartered Accountants of India.

In the lecture, he said while the technology has brought in major revolution in the working system of the banks, the fundamental aspects of banking, which is the trust and confidence of the people, remains the same. Also, there is a need to relook at the way companies and individuals are funded by banks, coupled with the need for improving the asset quality.

The reasons for default by the customers are both external, which are to an extent uncontrollable, and also controllable factors such as higher leverage by the customers, bad management of funds and wilful defaults.

“In recent years, there has been an increase in the amount of debt restructured under the CDR mechanism. This calls for radical overhaul of the risk management practices by banks,” Kannan added.

Source : The Hindu

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Vijaya Bank EGM to be held on Feb 19

The board of directors of Vijaya Bank at its meeting held on January 17, 2014 has approved that an extraordinary general meeting (EGM) of the shareholders of the bank will be held on February 19, 2014.

The EGM is being held to seek approval for conversion of perpetual non cumulative preference shares held by the Government of India into equity shares.

The board has fixed January 20, 2014 as ‘Relevant Date’ for the purpose of pricing of issue of equity shares to the Government of India in terms of SEBI (ICDR) Regulations, 2009.

Further, it has declared an interim dividend of 10 per cent (Re 1) per equity share for the financial year 2013-14.

anil.u@thehindu.co.in


Source: Thehindubusinessline

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