Vijaya Bank Targets ₹5,000 Crore NRI Business by 2011
Vijaya Bank has formulated a strategic plan, known as "Mission NRI 5000," to elevate its business from NRI accounts to an impressive ₹5,000 crore by the financial year 2011. Currently, NRI accounts contribute approximately ₹1,300 crore to the bank's total consolidated business volume.
Vijaya Bank Chairman and MD, Albert Tauro, stated, “We are working on ‘Mission NRI 5000’ to grow to five thousand crore rupees in the segment by financial next year”.
He further elaborated on the bank's plans, adding, “We plan to grow both in terms of clients and volume in this segment, especially in Kerala, Karnataka and Andhra Pradesh, but it would need some seeding time”.
Expanding Financial Inclusion and Branch Network
Beyond its focus on NRI business, Vijaya Bank has demonstrated leadership in financial inclusion and branchless banking initiatives. The institution has opened nearly a million no-frill accounts, furthering its commitment to serving a wider customer base.
Mr. Tauro also announced upcoming advancements in the bank's services. “We will soon launch mobile banking facility and up our number of branches and ATMs to 1200 and 500, respectively, across India”, he affirmed.
Regarding the bank's Current Account Savings Account (CASA) ratio, he noted, “Our CASA stands at 24% and we are targeting CASA level of 28% by the end of current financial year”.
Improved Financial Performance
Vijaya Bank has made significant strides in improving its financial performance. According to Tauro, “The bank has successfully brought down its cost of deposit and raised yield on deposit. This has improved our net interest margin from 1.68% to 2.38%”.
Furthermore, the bank has undertaken loan restructuring and rescheduling measures, amounting to ₹2,400 crore, predominantly in the MSME, housing, and real estate sectors. This strategic move aims to provide relief to borrowers facing financial challenges.
Inauguration of New Branches
During his visit to Lucknow, the CMD inaugurated ten new branches in the region, expanding the bank's presence across Lucknow, Badaun, Fatehpur, Hardoi, Pilibhit, Sultanpur, and Hathras districts. This expansion reinforces Vijaya Bank's commitment to enhancing customer accessibility and strengthening its network across India.