JOIN USVijaya Bank repaid bulk deposits worth Rs 7,000 crore during the second quarter of this fiscal to reduce costs, and has embarked on a plan to replace them with relatively low-cost retail deposits, according to its Chairman and Managing Director, H S Upendra Kamath.
“We have shed bulk deposits, including certificates of deposits during the second quarter and reduced them from Rs 40,300 crore as on June 30 to Rs 33,100 crore by September-end. The approximate interest rate is about 10 per cent on these deposits. We are now focusing on retail deposits,” he told reporters, after announcing a six-month offer on retail deposits, vehicle loans and home loans.
He said that the special drive to target retail deposits at a special rate of 9.30 per cent has paid off, with the bank garnering Rs 460 crore in the first nine days of October. The target for fiscal 2013 is Rs 7,000 crore, he added. It also plans to drive its retail loan book by Rs 1,200 crore during this fiscal through its reduced interest rate on home and vehicle loans. Kamath said the bank’s retail advances stood at Rs 12,115 crore as of September 30, 2012, up from Rs 10,356 crore as of September 30, 2011.