Vijaya Bank Vijayawada region deposits up 10%

Deposits of Vijaya Bank's Vijayawada region, comprising 39 branches in 10 districts from Srikakulam to Chittoor, rose to Rs 576.88 crore and advances to Rs 479 crore at the end of third quarter (April-December) for the financial year 2005-06, according to M Sadananda Hegde, bank's regional manager.

The bank's deposits in the region rose by 10 per cent and advances by 17 per cent when compared with the figures achieved during the same period in the fiscal 2004-05.

Hegde said that Rs 90.70 crore bulk of advances had gone to agriculture, taking the outstanding in the segment to Rs 190.3 crore. The bank has crossed the target fixed for the year. The branches at Gopalapuram, Buttaigudem and Ongole did exceedingly well while giving tobacco crop loans at 6 per cent, the lowest interest rate, in tie up with the Tobacco Board.

Under retail lending, Rs 115 crore was disbursed in the first three quarters of this fiscal. The main thrust in this segment was housing loans, which cumulated to Rs 36.8 crore, and 975 beneficiaries availed of these loans advanced at the lowest interest rate in the banking sector.

The floating rate was 7 per cent while the fixed was 8 per cent. Under the scheme, the bank itself pays loanees' general insurance installments. A sum of Rs 4.25 crore had so far been advanced to 822 self-help groups (SHGs) this year.

Entrepreneurs were given Rs 70 crore loans for setting up small scale industries (SSI). Educational loans worth Rs 2.89 crore were given to about 300 students. The other major loans given by the bank were personal loans (Rs 45 crore), trader loans (Rs 6 crore), loans to road transport operators (Rs 2.5 crore), mortgage loans (Rs 4.2 crore) and loans on jewellery (Rs 16 crore).

The bank employed the Securitisation Act and recovered bad debts totaling Rs 5 crore, thus achieving 80 per cent loan recovery, and bringing down the non-performing assets (NPA) to 2.37 per cent.

Hegde said Vijaya Bank, in tie-up with Punjab National Bank and the Principal Insurance Advisory Company Pvt Ltd of the USA, had done a business worth Rs 40 lakh and mobilised over 2,000 accounts in the region thereby emerging as the biggest broking company in mutual fund and general insurance business.

Along with the National Insurance Company Limited, the bank has started mobilising accounts under cost-effective V-Arogya Bima, which offers health and accident cover for the whole family. The bank hopes to mobilise 11,000 policies under this scheme before March end.

At present, the bank operates two currency chests, one at Tirupati, and the other at Vijayawada. Another currency chest is expected to open shortly at Rajahmundry.

The bank has been authorised by the Tirupati Tirumala Devasthanam (TTD) to sell its 'seva' tickets at 29 branches. It has three ATMs and would open four more by this month end.