We are planning to increase the share of retail portfolio to 50 per cent by March 2005. We are focusing on housing loans to profitably employ the excess investments pumped into statutory liquidity ratio (SLR) securities (government securities) till now, Vijaya Bank chairman and managing director MS Kapur said after announcing the banks second public offer of shares at a premium of Rs 14 per share of face value of Rs 10.
The bank has about Rs 1,100 crore of excess investment in SLR securities than the prescribed minimum limits. Housing loans, with a very low level of non-preforming assets are offering a profitable option to the bank. Once we have realised this, we have ramped up our portfolio in retail segment to 25 per cent from eight per cent a year back, Mr Kapur said.
He said that the bank was still looking for buying a bank having good presence in north India. The bank which is having wider presence in south India is seeking to expand its presence in north and western regions of the country.
We are looking for a bank with wide presence in north India with compatible product portfolio and is available a reasonable price then we will be interested in buying that, he added.
The banks thrust to recoveries through innovative methods like holding demonstrations at the offices of wilful defaulters and sending as many notices under securitisation act have yielded better results, he said.
The bank which collected Rs 160 crore during 2002-03 has recovered over Rs 120 crore during the first half of the current fiscal.
Through the second IPO the company is set to raise Rs 240 crore for augmenting its capital adequacy ratio from the present 12.73 per cent. The issue is likely to bring down the Centres shareholding in the bank to 53.87 per cent.
The banks stock closed on Bombay Stock Exchange (BSE) 35 paise up at Rs 26.05 on Monday and reported a volume of 1.50 lakh shares.