A recent press report said that Vijaya Bank has planned to recover its bad debts. Employees irrespective of the cadre can attempt the recovery of bad loans and they would carry an incentive, which will be a percentage of the recovered amount. The bank has doubled its recovery target of bad debts to Rs 1,000 crore for the current financial year compared with the previous year. The bank currently has about 11,000 employees across 1,200 branches.
Mr. H.S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank, told the press that it is unnecessary to pay the asset reconstruction companies to dispose of bad debts when the employees are better in recovering the bad debts. He added saying that 1-5 per cent of the recovered amount will be a good incentive for the employees to try their hand at recovery but they will have to do it in addition to their regular work, Mr. Kamath said. The bank had recovered about Rs 480 crore last year without any cash incentive and it is expected that the cash incentive would be an inducement for the employee to put in more efforts in recovery of bad loans. The loan portfolio of the bank includes home loan, vehicle loan, personal loan etc.