abhishreshthaa
Abhijeet S
COMPANY PROFILE
During the year under review, our follow-on public offer received an overwhelming response from the investors and its success can be gauged from the fact that the issue was over subscribed more than 17 times through 6.25 lakhs applications, which speaks volumes of investor confidence in your Bank. I would like to mention that since then, your bank’s scrip has been performing very well and has shown an uptrend consistently thereby improving shareholders wealth. In fact, Vijaya Bank’s scrip has outperformed many other banking scrips within the short span since our follow-on offer, indicating strong market preference.
The year 2003 – 04 witnessed positive macro economic environment like brisk business in the capital market activities, massive inflow of foreign exchange funds building up to over 105 billion dollar and stable GDP growth at around 8%. Technology and customer centric approach are shaping the future business strategies of banks prompting innovation and value addition to the services rendered to the customers. As a result, presently Indian economy is growing faster than most of the developed economies.
Further more, there is a perceptible shift towards management driven by values in the form of Corporate Governance, disclosure norms and adoption of International Standards and Best Practices as the economy progresses towards globalisation. One of the major challenges that beckon the banking sector is the area of efficient risk management, where the banks are gearing up for the effective implementation of the BASEL II norms, within the suggested time frame, as and when finalized.
Under the new capital accord II, the capital requirements for banks in India is likely to go up significantly. Cost effective banking methodology through technology is the order of the day. Banks ability to align capital closely with associated risk improves with increasing sophistication. This requires a high degree of automation, customization, centralization and software support. Recognising this, your Bank has made significant investment in technology.
Computerisation of branches has been taken up on top priority and on a massive scale, as more than 450 branches of the bank have been computerized, either fully or partially. The ambitious programme of the Bank to inter-connect 360 branches under Core Banking Solutions (CBS) is in the advance stage of implementation. Towards developing alternative channels of delivery, your Bank has proposed to install 125 ATMs at different locations and also tie-up arrangement with other banks’ ATM network which will facilitate our customers to transact business from anywhere at any time.
The Business of the Bank grew by 28.35% to reach the level of Rs.32,350 crores with deposit growth of 23.47% to reach the level of Rs.21015.05 crores and growth in advances to the extent of 35.50% to reach Rs.11335.05 Crores. As of now, our housing plan is by far the most competitive in the industry. The Bank has taken lead in setting prices under various categories of product. Even under these circumstances, the Bank has been able to enhance the net interest margin from 3.54% to 3.68%. The Bank has also done well in lending to the priority sectors, with the percentage of priority sector credit working out to 44.95% of net credit as against the norm of 40%. The performance of the Bank in maintaining asset quality is noteworthy.
During the year under review, our follow-on public offer received an overwhelming response from the investors and its success can be gauged from the fact that the issue was over subscribed more than 17 times through 6.25 lakhs applications, which speaks volumes of investor confidence in your Bank. I would like to mention that since then, your bank’s scrip has been performing very well and has shown an uptrend consistently thereby improving shareholders wealth. In fact, Vijaya Bank’s scrip has outperformed many other banking scrips within the short span since our follow-on offer, indicating strong market preference.
The year 2003 – 04 witnessed positive macro economic environment like brisk business in the capital market activities, massive inflow of foreign exchange funds building up to over 105 billion dollar and stable GDP growth at around 8%. Technology and customer centric approach are shaping the future business strategies of banks prompting innovation and value addition to the services rendered to the customers. As a result, presently Indian economy is growing faster than most of the developed economies.
Further more, there is a perceptible shift towards management driven by values in the form of Corporate Governance, disclosure norms and adoption of International Standards and Best Practices as the economy progresses towards globalisation. One of the major challenges that beckon the banking sector is the area of efficient risk management, where the banks are gearing up for the effective implementation of the BASEL II norms, within the suggested time frame, as and when finalized.
Under the new capital accord II, the capital requirements for banks in India is likely to go up significantly. Cost effective banking methodology through technology is the order of the day. Banks ability to align capital closely with associated risk improves with increasing sophistication. This requires a high degree of automation, customization, centralization and software support. Recognising this, your Bank has made significant investment in technology.
Computerisation of branches has been taken up on top priority and on a massive scale, as more than 450 branches of the bank have been computerized, either fully or partially. The ambitious programme of the Bank to inter-connect 360 branches under Core Banking Solutions (CBS) is in the advance stage of implementation. Towards developing alternative channels of delivery, your Bank has proposed to install 125 ATMs at different locations and also tie-up arrangement with other banks’ ATM network which will facilitate our customers to transact business from anywhere at any time.
The Business of the Bank grew by 28.35% to reach the level of Rs.32,350 crores with deposit growth of 23.47% to reach the level of Rs.21015.05 crores and growth in advances to the extent of 35.50% to reach Rs.11335.05 Crores. As of now, our housing plan is by far the most competitive in the industry. The Bank has taken lead in setting prices under various categories of product. Even under these circumstances, the Bank has been able to enhance the net interest margin from 3.54% to 3.68%. The Bank has also done well in lending to the priority sectors, with the percentage of priority sector credit working out to 44.95% of net credit as against the norm of 40%. The performance of the Bank in maintaining asset quality is noteworthy.