Net Interest Income (NII) for the March’13 quarter has grown up by 5% when compared to the corresponding quarter of the previous year. The Bank had shed bulk deposits / Certificate deposits to the tune of Rs.16933 cr during the FY 2012-13. The percentage of bulk deposits / CDs has reduced from 46.47% as on 31.03.2012 to 22.30% as on 31.03.2013. The Bank shall continue to shed the bulk deposits / CDs during the current financial year also and take all necessary steps to contain the costs.
Net profit for the year ended March, 2013 is Rs.586 crore. Net profit for the year is after making all necessary provisions including provision for NPA of Rs.428 Crore, provision for standard assets of Rs.84 cr and provision for standard restructured accounts towards economic loss of Rs.80 cores.
Priority sector advances of the Bank posted an Y-o-Y growth of 17% and aggregated to Rs.19505 crore. Of the priority sector advances, agricultural advances aggregated to Rs.7099 crore, up by 26%, MSE loans increased to Rs.8424 crore, up by 17% and MSME advances to Rs.10594 cr, up by 28%. Educational loan portfolio of the Bank is at Rs.671 crore up by 4.34% .Loans to weaker sections stood at Rs.5581Crore up by 30%. Loans to women beneficiaries registered a growth of 26% and improved to Rs.4526 Crore from Rs.3593 crore.
As regards asset quality, the Gross NPA of the Bank as on 31.03.2013 (Rs.1533 cr) has reduced to below the level as on 31.03.2012 (Rs.1718 cr). Similarly, Net NPA also reduced from Rs.998 cr as on 31.03.2012 to Rs.910 cr as on 31.03.2013. The Gross NPA ratio and Net NPA ratio of the Bank as on 31.03.2013 improved considerably to 2.17% and 1.30% and are below the March, 2012 levels of 2.93% and 1.72% respectively. Provision Coverage Ratio as at the end of March, 2013 has also improved to 68.31% against 62.15% as at the end of March, 2012. Capital to Risk Weighted Assets ratio (CRAR – Basel II) stood at 11.32% as at March 31, 2013 which is above the minimum required level of 9%.
MAJOR DEVELOPMENTS / INITIATIVES
Total number branches increased to 1359 and total number of ATMs increased to 874. The Bank’s 1334th branch at Kattukudipatti was inaugurated by Hon’ble Finance Minister Shri P Chidambaram. The Bank has conducted ‘Creating a Customer Centric Organization (C3O)’ workshops at 50 major centres for all frontline staff to train them in counter etiquette, product knowledge and customer service. Risk Management Department of the Bank has been awarded ISO27011 certification by British Standard Institute(BSI). Vijaya Bank has been conferred two awards by World HRD Congress 2013 and World CSR Congress for Human Resource (HR) practices and Corporate Social Responsibility (CSR) initiatives. Under Financial Inclusion the Bank has already covered all the 379 allotted villages having population of above 2000 with 47 branches and 332 BCAs / USBs. In these villages, 4.31 lakh accounts have been opened. Credit linkage has been provided to 43357 beneficiaries to the tune of Rs.201.40 crore. The Bank has successfully participated in the first phase of DBT(Direct Balance Transfer) in 43 pilot districts. Bank has also initiated required steps to open bank accounts / seed Aadhaar numbers in 78 districts identified for II phase of DBT.
GUIDANCE FY 2013-14
1. Bank aims to reach a business level of Rs.2,10,000 crore.
2. To increase the Branch net work to 1500 and expand the ATM network also to 1500 by March, 2014.
3. Opening of 7 HNI branches and more GenNext Branches to suit the requirements of the modern citizens/elite customers.
4. To shed the bulk deposits and CDs further.
5. To focus more on retail business in respect of both the liabilities and assets side of the Balance Sheet for reducing the costs and improving the yield.
6. Target oriented approach for improving the fee based income.
7. To contain fresh slippages and reduce the Gross / Net NPA levels further.
8. Special focus on recovery from delinquent borrowers.
