Date:31/05/2006 URL: http://www.thehindu.com/2006/05/31/stories/2006053104431600.htm

Business

Vijaya Bank to step up jewel loans

Staff Reporter

Move linked to lower risk in the portfolio

`This portfolio [potential] can be Rs. 1,000 crore'
Plans to conduct Vijaya Adalat

Proposes to raise Rs. 200-300 cr. tier-II capital

CHENNAI: The Bangalore-based Vijaya Bank is keen on enhancing its exposure in the jewel loan portfolio.

"We want to concentrate on jewel loan ... this portfolio [potential] can be Rs. 1,000 crore," Executive Director, T. Valliappan, told presspersons after a customers' meet of the bank here on Sunday.

The decision of the bank, whose jewel loan advances were around Rs. 350 crore, was driven by the relatively lower risk associated with the portfolio and the network in rural areas. Noting that there was huge potential in the rural areas, he said "it is secure loan ... risk will be minimum."

On the initiatives towards reducing non-performing assets, he said the bank proposed to conduct Vijaya Adalat, on the lines of Lok Adalat, for settlement of dues below Rs. 25,000.

Mr. Valliappan said the business target for the current fiscal was Rs. 60,000 crore.