CARE assigns ‘CARE A1+’ rating to CD programme of Vijaya Bank

Credit rating agency, CARE has assigned ‘CARE A1+’ rating to the Certificate of Deposits (CD) programme of Vijaya Bank for an enhanced limit with a maturity upto one year. The amount is been enhanced to Rs 25,000 crore from Rs 20,000 crore.

The bank’s continued Government of India support, ability to improve the funding profile and contain credit losses are the key rating sensitivities. The rating also takes into account its below average asset quality indicators, high exposure to the Commercial Real Estate (CRE) sector, low Current Account & Savings Account (CASA) mix and weak operational parameters.

Vijaya Bank is a Bangalore-based mid-sized public sector bank with the Government of India shareholding of 57.69%. As on March 31, 2011, the bank had a network of 1,200 branches. The bank has a substantial footprint in Southern India with around 60% of its branches and 49% of the business coming from the region.