Vijaya Bank trades on new 52 week high in trade today

According to the Executive Director BS Rama Rao, Vijaya Bank is anticipating 7-8 per cent growth in business this year.

The growth will mainly be driven by the retail sector. Rao, in an interaction on Friday, said that their retail growth was the highest in the industry at 28 per cent in the Q2 FY17 ended September 30, and also accounted for 28 per cent of our total portfolio.

But corporate credit off-take has not picked up yet, he said. This depends on total demand in the economy. Industrial production is down and infrastructure and energy sectors are also lethargic.

At the anticipation, Vijaya Bank share price traded at the new 52 weeks high of Rs. 49.30

He also said that the net interest margin (NIM) for the current financial could be around 2.75 per cent. It was 2.61 per cent in the second quarter.

In the Q2 results declared last week, the bank reported a 34 per cent rise in profit to Rs. 154 crore supported by a 20 per cent rise in net interest income to Rs. 828 crore and a doubling of its other income to Rs. 388 crore.

 

Confronting NPAs

To handle non-performing assets (NPAs), Vijaya Bank is adopting a sector-specific approach. The ED of Vijaya bank said that for each section of customers, such as farmers, micro, and small and medium entrepreneurs, they are rolling out one-time settlement schemes. There have been no grave issues of asset quality in the retail segment.

Asset quality, although improving sequentially, is a concern for the bank as net NPAs increased to 5.1 per cent compared with 2.84 per cent in the year-ago quarter.

Meanwhile, at 11:03 PM, Vijaya Bank share price was trading at Rs. 49.20 with the rise of 14%.

Going forward, Bangalore-based Vijaya Bank will concentrate on expanding its reach through brick-and-mortar model as well as technology products. The number of branches will increase from 1980 now to 2050 by March 31, 2017. They are also seeing a huge jump in mobile and Internet banking, said the Executive Director.

The mobile banking user base extended to nine lakh this year from 1.36 lakh last year, while net banking clients went up to 6.69 lakh from 3.33 lakh during this period.

Rao said that the previously announced tier-I additional capitalization of Rs. 750 crore is expected to be closed in a couple of weeks.

Vijaya Bank is the top 500 recommended share for the quarter by Dynamic Levels. For the support and resistance level of the stock, visit Vijaya bank share price forecast page of Dynamic Levels website.

Source  :   

https://www.dynamiclevels.com/en/blog/vijaya-bank-trades-on-new-52-week-high-in-trade-today