Vijaya Bank Vijayawada generates Rs 1131cr business

The Vijaya Bank, Vijayawada region, covering nine coastal Andhra districts and Chittoor district, generated a business of Rs 1,131 crore, including Rs 596 crore deposits (annual target Rs 780 crore) and Rs 535 crore advances (annual target Rs 700 crore) in the eight months from April 1 the financial year 2006-07. The credit-deposit ratio now stands at 89 per cent.

The region earned a net profit of Rs 15 crore during the first two quarters of the year. In tie-up with the Tobacco Board, the bank released Rs 50 crore loans to tobacco farmers at 5.85 per cent interest.

M. Sadananda Hegde, regional manager of he bank, told Business Standard that almost entire deposit amount was spent within the region only. A sum of Rs 117.29 crore has been advanced to 31,353 farmers this year, taking the outstanding amount under the head to Rs 206.81 crore.

He said the retail loans accumulated to Rs 351 crore (Rs 76.91 crore this year) of which Rs 123 crore constituted housing loans (Rs 12 crore this year). Disbursement of education loans amounted to Rs 9 crore (Rs 1.70 crore this year).

Over 500 self-help groups were given Rs 3.5 crore this year while about 50 Ryothu Mithra groups, comprising tenant farmers, were given loans to the tune of Rs 43 lakh.

The bank, through eight adalats, securitisation and other means, recovered Rs 5 crore while NPA now stood at Rs 24 crore, according to Hegde. The bank has entered into an agreement with the Tirumala Tirupati Devasthanams (TTD) for selling 'seva' tickets at 33 branches all over the country.

Hegde said all the branches in the region were computerised while core banking solutions were introduced in eight of them, covering 48 per cent the business. In addition to five ATMs in the region, two more would be opened at Kakinada and Tirupati.

He said clearance from the RBI was being awaited for opening new branches at Tadepalligudem, Amalapuram, and Palakol.

Extension counters at Kakinada and Visakhapatnam would soon be converted into branches. The bank this year introduced V-Rakshak scheme for army personnel, V-Shikshak scheme for teachers and V Arogya scheme.

Under another scheme, credit cards were given to savings bank account holders who have a deposit of Rs 50,000 and above. As many as 1,600 people have already been covered under V Arogya.

The bank, which celebrated its platinum jubilee recently, operates 39 branches and two currency chests in the 10 districts--16 branches in urban areas, 14 in semi- urban areas, and nine in villages.