The Hindu Business Line : Vijaya Bank sees a better first quarter

Vijaya Bank expects the current quarter of this financial year to be better than the corresponding quarter of last year for two reasons. First, even in the first 45 days of the current year, the bank made a profit of Rs 13.5 crore by trading in shares and mutual funds, compared with less than Rs 1 crore in the first quarter of last year.

Second, the bank has achieved a Rs 40-crore reduction in non-performing assets, either by cash recovery or by upgradation of accounts, compared with Rs 17 crore in Q1 last year. "There is still a month to go," notes Mr T. Valliappan, Vijaya Bank's Executive Director.

In an informal chat with Business Line, he said that reduction in NPA would impact the bottom-line in a number of ways such as release of provisions and booking of interest.

NPA reduction

In the first quarter of last year, the bank made a net profit of Rs 27.5 crore. On the basis of the trading profits and NPA reduction, Vijaya Bank's officials say the current year's net profit could well be twice as much as in Q1 last year.

Mr Valliappan was here in connection with a meeting with customers of Vijaya Bank. Speaking to journalists on the sidelines of the meeting, he said that the bank would focus on jewel loans.

He said that the bank's jewel loan portfolio was about Rs 350 crore, which might grow to Rs 1,000 crore this financial year. He noted that jewel loans were safe and the hypothecated assets liquid, and there was a good demand for these loans from rural areas.

Faster loan processing

Some customers mentioned that it took time for loan proposals to be processed. Mr Valliappan said that the bank intended to introduce a system of "joint appraisal", in which a loan proposal would be concurrently appraised by the branch, regional office and the head office. He also said that the bank intended to come out with "V-Adalat" programmes for quick settlement of NPAs.

Vijaya Bank's total business for 2005-06 was Rs 45,000 crore. The bank has set itself a target of Rs 60,000 crore for the current year.

More Stories on : Outlook | Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`Crop loan rate to be 7 pc'

Citicorp Finance posts lower profit

Plea for single RRB entity

Rupee breaches 46 mark

Seminar on rural insurance

i-flex sets up Castek competency centre

`Reinsurance market growing consistently'

South Indian Bank expands network

Bond prices down 22 paise

CIBIL launches commercial bureau

Call rates steady

Beef up grievance redressal, banks told

Vijaya Bank sees a better first quarter

HNI clients have faced stock market crash well, say banks