Vijaya Bank plans to acquire a bank, to form alliances

State-run Vijaya Bank, which has presence mostly in the southern region, plans to acquire a bank that has branches in west and north India to consolidate its position in the banking sector.
The public sector bank is in talks with other banks for forming a strategic alliance, and also plans to open branches in Dubai and Hong Kong, Chairman and managing director Prakash Mallya said.

‘Some strategic alliance have taken place....IOB, Indian Bank and Oriental Bank of Commerce. Like this, one or two more alliances may take place. About that, we are in talks,’’ he said after inaugurating a new branch at Malleshwaram. He, however, declined to name the banks with which dialogue was on.
Mallaya also said the bank would look out to buy a well established bank next year.
‘‘We are consolidating our position by March 2007. Then we will look into buying a bank well established in the West andNorth,’’ he added.
The bank has sought approval from Reserve Bank of India to open branches in Dubai and Hong Kong and a representative office in China. "RBI is actively considering it," he said.
Consolidation of banks in India would have several benefits, he said, adding there were more than one lakh branches of public sector, regional, rural, private sector and cooperative banks in the country. State Bank of India, the country's largest lender, was "nowhere near" compared to foreign banks. Citibank's loan asset base is 12 times bigger than that of the SBI, he noted.