“Vijaya Bank’s Winning Framework In Major Reduction of NPAs”
Special interview of shri Sidheswar Patra, Head GM, Vijaya Bank with Business Sphere, The Magazine of the Corporate India. BS: What has Vijaya bank initiated to ensure strict vigilance during pre and post sanction due diligence processes of loan & what has been done by vijaya bank to fortify the internal processes to ensure the effective funds monitoring? Sidheswar Patra (SP): We do pre-sanction inspection, proper due diligence of the borrower and its immovable properties/stock/ project and other assets by visiting all the business/residential places of the borrower before sanctioning of any loan followed by periodical inspection, regular monitoring of account, stock inspection, site visit etc. and permitting the borrower to regulate the account within the Drawing Power or as per the process of the project etc. BS: How many cases have been referred to the Bankruptcy Courts in Delhi? SP: There are Eight cases filed in NCLT-Delhi BS: In 2013, Vijaya Bank takes on NPA storms in Q4 with net increase of 24%, what is your prediction for this and the next financial year? SP: At present NPA level is well under control. At Q2-2017 Gross NPA has come down from 7.07% to 7.06% on Y.O.Y basis. Similarly Net NPA is down from 5.10% to 4.86% on Y.O.Y. basis which is best among the midsized Public Sector Banks. BS: How would you forecast the value of Vijaya Bank shares in future & has the listing been affected owing to the NPA Problem? SP: We expect our share price to consolidate and move upwards. Our level of NPA is well under control. Hence we do not expect any problem in the share price movement. BS: What is Vijaya Bank strategic focus now, to strengthen the Banks position? SP: Vijaya bank has strategy to focus/ canvass on qualitative advances with a thrust on retail advances and focused strategy for managing stressed assets, which enable us to strengthen our position. BS: Could you enlist any major activities of your bank for the pursuing of financial inclusion inline with the country’s inclusive growth framework? SP: Major activities being undertaken by our bank in this regard are:
• Opening of rural branches in un-banked areas to reach out to the unprivileged people of the society.
• Cultivate the banking habits by organizing Literacy Meet in rural areas.
• Promotion of Government insurance schemes like APY, PMSBY, PMJJBY by organizing various camps.
• Performance in Mudra loan. Performance in APY campaign. BS: What would you specify about the Vijaya banks technology and training initiatives under “Digital India”& “skill India” towards achieving excellence in business growth? SP: Our bank has always been at the forefront in technology upgradation. To move towards cashless society, Vijaya bank has launched e-wallet V-PAYQwik, which has been integrated with United Payment Interface (UPI) for safer and faster money transfer. We have partnered with National Payment Corporation of India (NPCI) to provide training to our staff. Besides, our bank has lunched Digital Awareness Campaigns in schools/colleges to sensitize the younger generation about the benefits of Digital payment.
Sidheswar Patra, Head GM