From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Oct 10: Leading public sector bank, Vijaya Bank, has targeted mobilization of Rs 7000 crore as deposits under its latest one-year term deposit V-Vaibhav.
The V-Vaibhav scheme, launched barely nine days ago, has already succeeded in mobilizing Rs 460 crore, the Vijaya Bank Chairman and Managing Director H S Upendra Kamath said.
“We are looking at a growth of 15 per cent in total business during this fiscal,” he said adding: ``As part of our growth strategy, we have launched several new products including one year term deposit scheme.”
Under V-Vaibhav deposit scheme, the bank is offering 9.30 per cent rate of interest for deposits of Rs 10,000 and above in rural areas, Rs 25,000 and above in semi-urban, Rs 50,000 and above in urban and Rs 1 lakh and above in Metro areas.
Vijaya Bank’s total deposits touched Rs 85,178 crore for the six month period ending September 30, 2012, as against Rs 83,056 crore as on March 31, 2012 showing a growth of 2.5 per cent.
As part of the festival bonanza offer, Vijaya Bank has also reduced interest rates on its vehicle loans with an extended repayment period of seven years for the first time.
The vehicle loans are now offered at 11 per cent interest.
The Bank aims to garner an additional portfolio of Rs 500 crore under vehicle loans, Kamath said.
He said the bank has also introduced three new categories of loans under its home loan segment with loans up to Rs 30 lakh, Rs 30 lakh to Rs 75 lakh and Rs 75 lakh and above. It is offering a discount of 55 basis points to 1.05 per cent depending on the tenor of loans.
For housing loans up to Rs 30 lakh with a repayment period of 10 years, the bank is offering 10.50 per cent interest and 10.75 per cent for a period of 20 years.
For loans of above Rs 30 lakh and up to Rs 75 lakh, the bank would charge 10.75 per cent for 10 years period and 11 per cent for 20 years repayment period.
For loans above Rs 75 lakh, the bank would charge 11 per cent and 11.5 per cent for 10 years and 20 years repayment periods respectively, Kamath said.
The bank’s current housing loan portfolio stands at Rs 4,200 crore.
The Bank has waived processing fee on housing and vehicle loans for a period of six months ending March 31, 2013, he said.
Vijaya Bank’s retail loan book has increased by 17 per cent to Rs 12,115 crore as on September 30, 2012 compared to Rs 10,356 crore as on September 30, 2011.