The bank has also initiated the process by the launch of its scheme Vrent for securitisation of rentals, where the interest charged is 15 per cent. It has already securitised Rs 10-crore rentals.
"We are also offering flexibility to our borrowers by giving them the option to choose between foreign currency and rupee loans," Vijaya Bank chairman and managing director S Gopalakrishnan said.
This apart, the bank has decided to sell insurance products. It is in the process of finalising the strategies for insurance venture.
Gopalakrishnan said a final decision on the timing of Rs 100-crore IPO will be taken after receiving the approval of the Securities and Exchange Board of India (Sebi).
"We may plan the float sometime later as well since the approval is valid for one year. We will consider the market conditions before we launch it."
Vijaya Bank will shortlist software and hardware companies for carrying out its computerisation programme. Many companies have made presentations before the management presently.
The bank has initiated the computerisation programme based on the recommendations of NIIT, which was appointed as the consultant for the plan. The branches in one city will be networked first, following which the bank will focus at intercity-connectivity.
The Rs 6-crore plus computerisation programme will take two and a half years to be completed, Gopalkrishnan said.
Increasing the operating profit, Internet banking, reducing non performing assets percentages to ambitious figures, sharper focus on non-fund based business, and seven day banking are the top priorities for the bank now.
With a 90 per cent rise in net profit to Rs 60 crore, operating profit of Rs 180 crore, and a projected net profit of Rs 100 crore this fiscal, the bank's immediate reason for the public issue is the need to maintain a healthy capital adequacy ratio.
Among the bank's high points this time around are the reduction of NPA share in net advances to five per cent (estimated) and pruning the number of loss making branches to 10.
Staff productivity too went up at the end of the last fiscal, with employees logging an average business of Rs 1.06 crore. Vijaya Bank expects its total business to cross the Rs 25,000 crore in 2000-2001.
