Vijaya Bank targets Rs 7,000 cr deposits under V-Vaibhav scheme

Under the scheme, the bank is offering 9.30% rate of interest for deposits of Rs 10,000

Bangalore-based public sector lender Vijaya Bank is aiming at mobilising Rs 7,000 crore deposits under V-Vaibhav, a one-year term deposit scheme over a period of next months. The bank, which launched the scheme nine days ago, has till now mobilized Rs 460 crore.

“We are looking at a growth of 15% in total business during the fiscal. As part of our growth strategy, we have launched several new products including one year term deposit scheme,” H S Upendra Kamath, chairman and managing director, Vijaya Bank said.

Under V-Vaibhav deposit scheme, the bank is offering 9.30% rate of interest for deposits of Rs 10,000 and above in rural areas, Rs 25,000 and above in semi-urban, Rs 50,000 and above in urban and Rs 1 lakh and above in Metro areas.

For the six month period ended September 30, 2012, Vijaya Bank’s total deposits touched a level of Rs 85,178 crore, as against Rs 83,056 crore as on March 31, 2012, showing a growth of 2.5%.

As part of the festival bonanza offer, Vijaya Bank has also reduced interest rates on its vehicle loans with an extended repayment period of seven years for the first time. The vehicle loans are now offered at 11% interest. The Bank aims to garner an additional portfolio of Rs 500 crore under vehicle loans, Kamath said.

He said the bank has also introduced three new categories of loans under its home loan segment with loans up to Rs 30 lakh, Rs 30 lakh to Rs 75 lakh and Rs 75 lakh and above. It is offering a discount of 55 basis points to 1.05% depending on the tenor of loans. For housing loans up to Rs 30 lakh with a repayment period of 10 years, the bank is offering 10.50% interest and 10.75% for a period of 20 years.

For loans of above Rs 30 lakh and up to Rs 75 lakh, the bank would charge 10.75% for 10 years period and 11% for 20 years repayment period. For loans above Rs 75 lakh, the bank would charge 11% and 11.5% for 10 years and 20 years repayment periods respectively, Kamath added.

Its current housing loan portfolio stands at Rs 4,200 crore.

The Bank has waived processing fee on housing and vehicle loans for a period of six months ending March 31, 2013.

Vijaya Bank’s retail loan book has increased by 17% to Rs 12,115 crore as on September 30, 2012 compared to Rs 10,356 crore as on September 30, 2011.

Kamath said the bank has reduced its bulk deposits level by Rs 7,200 crore to take it to the level of Rs 33,100 crore as on September 30, 2012 compared to Rs 40,300 crore as on June 30, 2012. The bank aims to further reduce the bulk deposit levels during the remaining two quarters of the current fiscal.