Vijaya Bank aims to recover Rs 160 crore this quarter

Vijaya Bank aims to recover  Rs 160 crore this quarter

In a bid to trim bad loans, public sector lender Vijaya Bank aims to recover Rs 160 crore in Q4, a top executive said.

“By March 2017, we want to recover Rs 160 crore mostly from MSMEs (micro, small and medium enterprises), priority and retail sectors. About 80% of Vijaya Bank advances come from the recovery is little slow. The entire focus remains to catch up with defaulters and resolve the NPA issue,” Vijaya Bank MD and CEO Kishore Kumar Sansi told DH.

“We have been curtailing our NPAs (non-performing assets). Most of the stressed assets have been declared. For the last two quarters, we have been able to reduce our gross NPAs from 7.37% to 7.07%. Currently, it stands at 6.98% and net NPAs at 4.74%,” Sansi added.

“We have been seeing about Rs 250 to Rs 300 crore of fresh slippages every quarter.

Historically, it has been happening. As far as large borrower is concerned, we do not foresee any casuality coming in the next couple of quarters,” he said.

Vijaya Bank had plans to raise Rs 750 crore through tier-I bonds in the current financial year to meet business requirements. Out of Rs 750 crore, the bank has raised Rs 325 crore so far.

“Our intention is to focus more on identifying areas, and we are trying to contain our risk-weighted assets, so that more lending can be done within our existing capital. We plan to improve our capital further during the next financial year, and we will approach our Board,” he said. The bank aims to expand its retail customer base, and is adding close to one lakh accounts per month.

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