Vijaya Bank Slashes Lending Rates

Public Sector, Vijaya Bank has finally brought down interest rates on a wide range of its loan schemes, effective from February 15, 2008. While it has effected a 25 basis points (bps) decline in floating rate on its housing loans up to Rs 20 lakh to 9%, under education loan, the rate of interest has been rationalized and brought down by 50 bps to 11.5%.

Further, interest rates on various schemes under the MSME and SGSY sectors have also been brought down in the range of 50-150 bps.

Under agricultural advances, interest rates on loans above Rs 50 lakh have been revised downward by 100 bps. The bank has also rationalized interest rates on its corporate vehicle loans at 10.5 %.

Last month, Vijaya Bank unveiled its plans to set up branches in China, Hong Kong, Malaysia and Dubai. The bank has already submitted its proposal to the Reserve Bank of India (RBI), seeking its permission to start the overseas branches.

The bank has also planned to open branches at 15 places in Tamil Nadu by the end of the current financial year. In Q3 FY08, The bank has reported net profit of Rs 126.88 crore versus Rs 92.73cr, up 36.83% on YoY basis.