Vijaya Bank aims at 30% increase in CASA share

The total business of city-based public sector lender, Vijaya Bank, increased by 18 per cent to reach Rs 1,22,470 crore during the financial year that ended on March 31.

H S Upendra Kamath, chairman and managing director of the bank, said, "We intend to increase our Current Account Savings Account (CASA) share to 30 per cent in the next two years.
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Besides, we are targeting a growth of 20 per cent under the retail credit and a 30 per cent increase in MSME advances this year."

Kamath added that in the fiscal year 2010-11, Vijaya Bank's deposits grew by 18.27 per cent. During the same period, the bank's advances climbed up 17.37 per cent to reach Rs 49,222 crore.

While Vijaya Bank could uphold the average yield on advances around 10.25 per cent, the cost of deposits came down to 5.86 per cent.
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As a result, the net interest income of the banking institution surged substantially by 34.35 per cent to reach Rs 1,946.78 crore. Moreover, the bank's Net Interest Margin (NIM) also bettered during the year to 3.04 per cent.

More ATMs
Vijaya Bank currently has 1,200 divisions and is eyeing to append another 100 divisions and 150 ATMs in the existing fiscal.

"We want to bring all the retail credit products under the centralised processing fold by strengthening the existing Retail Asset Centralised Processing Cell (RACPC) setup and by introduce centralised processing for MSME loans.
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This will help us reduce the turnaround time in sanctioning and also to boost credit flow to these segments," Kamath added.

Besides, attempts will be made to diminish high cost liabilities and low yielding assets. In addition, Vijaya Bank is also looking at increasing other income via plans for re-entry into third party businesses.