Query : Can you guide for Vijaya Bank for short term? Goldy BachherThebullishtrends: Vijaya Bank share price closed on Friday at Rs.81. Vijaya Bank a Govt PUS see 12.5% deposit growth and 7% credit growth. NIM is seen at 3% by March 2008. the capital adequacy is around 11.29,
which is well above the international benchmark of 9%.
Vijaya Bank is planning to raise funds from overseas in 2008. Vijaya bank aims to reach a total business of Rs 76,000 crore, in which Rs 31,000 crore will be its credit level, that it hope to reach. In the non-fund based business, bank is focusing on the fee income and with that their margins should go up. The credit growth is around 8% in the bank, from April to November. The credit growth Vijaya Bank expected has not taken place.
Similar is the case with other banks. But in another four-months, the credit growth should pick up and it should reach a level of Rs 31,000 crore, as it close the year this fiscal. The NIM will be around 3% and the non-fund based business is growing now. Vijaya Bank is focusing on that and CASA is also growing. If you are having these shares then just hold it till April'08.
