At a time when many of its peers have scaled down FY 09 credit growth targets owing to challenges in market, state-run Vijaya Bank has decided to scale up its loans in ‘productive segments’ such as SME in the months ahead, a top official said.
Vijaya Bank’s Executive Director, S C Kalia said, “There is no question of scaling down our credit disbursals. In fact, we are aggressively lending to micro, small and medium firms and infrastructure projects. These sectors are the growth-drivers of the economy.”
Vijaya bank also expects to bring down its badloans significantly in the current fiscal year. The bank’s gross Non-Performing Assets (NPA) stood at around 1.75 per cent and net NPAs at 0.75 per cent as on September 30, he added.
The bank has a total credit-base of around Rs 37,000 crore and a deposit-base of Rs 52,000 crore. The lender has seen a year-on-year credit growth of 37 per cent as on September 30, 2008 and hopes to achieve around 25-30 per cent growth in FY 09, Kaliya said.
Following the rate cuts from the Reserve Bank last Friday, Vijaya Bank has reduced its deposit rates by 0.5 per cent across different tenures with immediate effect
“In the current market scenario, the corporate and SME clients are facing issues owing to the impact of global financial crisis in this market. The bank will provide adequate finance for viable projects to support these companies,” Kalia said.
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