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Vijaya wields the broom

Calcutta, Oct. 6: Vijaya Bank, whose second public issue of Rs 240 crore opens on October 9, will lower its net non-performing assets (NPAs) to 1 per cent of the net advances or below by December next year.

The bank’s net NPA was 1.6 per cent of the net advances on June 30, 2003. In volume terms, the net NPA is at Rs 140 crore.

“The bank has set up recovery brigades in every regional office and branch to conduct ‘road shows’ at the defaulter’s residence to speed up recovery. This way, the bank was able to recover Rs 115 crore in cash. This fiscal, we have already recovered almost Rs 70 crore,” chairman and managing director M. S. Kapur said.

About 56 per cent of the gross NPA of the bank are loans of Rs 5 lakh or below. Out of this, 40 per cent are loans below Rs 1 lakh or below.

The bank, however, failed to achieve the export credit target of 12 per cent for the last five years. It has received the Reserve Bank’s permission to set up a branch at the special economic zone in Mumbai by December, which could boost export credit this fiscal, Kapur said.

The bank has chalked out an ambitious plan to achieve Rs 43,000 crore business by March 31, 2005. Of this, Rs 17,000 crore will be in advances.

The bank hopes to do business worth Rs 33,000 crore this fiscal. Out of this, Rs 11,000 crore will be in advances and the rest in deposits. It expects to achieve this growth in advances from retail lending and housing loans.

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