Vijaya Bank will focus on efficiency rather than size, said V Kannan, the Chairman and Managing Director of the bank.

“When our business touched ₹1-lakh crore in January 2010 and crossed the ₹2-lakh crore mark at the close of the just-ended fiscal, our position was upgraded among public sector banks. Our focus is now on further improving efficiency,” he said.

The bank’s assets, he said, grew 15 per cent last year, while deposits expanded 23 per cent. “We took a conscious decision to keep the assets growth at 15 per cent. We were aggressive in select segments, such as retail and SME, where growth was as high as 23 per cent.”

“The gross NPA of the bank at the end December 2013 was 2.6 per cent and we would like to bring it below 2 per cent. We have established credit quality in the selection of customers,” he added.

Branch network

The bank added 159 branches to its network last year and will add another 190 branches in the current fiscal and target a 20 per cent growth.

“With the existing capital, we will be able to sustain this growth. We received ₹250 crore by way of capital from the Government in December and raised tier-II bonds of a similar amount. We have adequate capital and will not be looking at raising capital for now. Maybe in the fourth quarter of 2014-15, we will consider going to the market but not now,” Kannan said in reply to a query.

The bank, with a total strength of 12,900 on the rolls, plans to recruit 1,200 candidates this fiscal.

On the entry of new banks, he said, “I don’t see any threat in terms of business, but talent retention could be an issue with the new players luring the trained ones with a better package, which the State-run undertakings would not be able to reckon.”

comment COMMENT NOW