Vijaya Bank Vijayawada earns Rs 32 crore profit

The Vijayawada region of Vijaya Bank, with 39 branches covering 10 coastal districts, earned a profit of Rs 32 crore and did a business to the tune of Rs 1,100 crore during 2005-06, registering a growth of 5.5 per cent.

M Sadananada Hegde, bank's regional manager, told Business Standard that the bank's deposits stood at Rs 605.55 crore and advances at Rs 496.01 crore at the end of the financial year. The bank succeeded in restricting high cost bulk deposits and pooled up Rs 181.84 crore low cost deposits, which now formed 30 per cent of the total deposits.

Total advances in the region showed a growth of 18.52 per cent. Advances in agricultural sector recorded a growth of 39 per cent.

He said that the bank's 9 rural, 14 semi-urban and 16 urban branches disbursed Rs 109.73 crore agricultural loans in ten districts during 2005-06 financial year, taking the total agricultural advances to Rs 201.12 crore. Crop loans stood at Rs 104.46 crore.

He said the bank's advances in the priority sector cumulated to Rs 381.01 crore in the region during the year, constituting 76 per cent of the total loans. It also released Rs 44.42 crore under housing loans and Rs 28.80 crore to small-scale industries (SSI). The bank also gave Rs 5.88 crore to 1,005 self-help women groups (SHGs) and 49 Raithu Mithra groups.

Hegde said the three branches in Krishna district disbursed Rs 4.07 crore agricultural loans during the year. The loans included Rs 4.01 crore (Rs 88.09 lakh target) crop loans and Rs 5.59 lakh agri term loans (Rs 0.59 lakh target). The bank also exceeded the priority sector target of Rs 594.90 lakh fixed for it and put up a performance of Rs 1,024.78 lakh in the district. The bank this year (2006-07) would target Rs 9 lakh crop loans, Rs 35 lakh agri-term loans and Rs 4.60 lakh loans under agricultural allied activities.

He said the branches recovered Rs 8.45 crore from loan defaulters by invoking SARFA and ESI Act and through negotiations. This year, the bank introduced V Arogya health insurance scheme for all people.

He said the bank would open five new branches and set up 10 new ATMs in the region during 2006-07.