BANGALORE, May 22: Vysya Bank, the country's largest private sector bank, has posted a marginal increase in its net profit during 1996-97. The figure stood at Rs 112 crore, up from Rs 105. 71 crore in 1995-96. It has recorded deposits of Rs 5,200 and advances of Rs 2,600 crore during 1996-97. This is against deposits of Rs 4,301 crore and advances of Rs 2,541 crore for 1995-96.

According to sources, net profits have increased marginally from Rs 105.71 crore in 1995-96 to Rs 112 crore (provisional) in 1996-97.

Capital adequacy ratio is likely to rise a shade from 11.91 per cent as on March 31, 1996 to 12 per cent this year.

The bank suffered from very high cost of operations, at present 11 per cent, the highest among the private sector banks. The figure in the case of public sector banks is around 8 per cent.

Vysya Bank has also restructured its operations by abolishing the zone-based classification which divided operations into four zones. Instead, two credit departments have been set up, each headed by a deputy general manager. The first department will take care of the bank's business in the metros. These centres account for nearly 60 per cent of the business and the second credit department will cater to Andhra Pradesh, Karnataka and Kerala.

The bank decentralised some of its credit operations by abolishing its divisional offices and has set up regional offices, instead.

Each regional office will have its own limit on sanctioning credit. Approvals for higher denominations will come directly from the respective credit departments. The bank has 340 branches at present. Eighty five are either partially or completely computerised and 45 of these will be inter-connected through E-mail by the end of July.

ICICI Bank will also join the shared payment network system, coming up inMumbai. In order to attract more deposits, the bank plans to launch the Vysya Plus scheme for savings and current account holders. The scheme, providing additional facilities to account holders, is yet to be approved by the bank's product design committee.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.