A recent press report said that Vijaya Bank has planned to centralise its loan processing activities under the retail and MSME segments, so as to reduce the turnaround time in sanctioning loans. Mr. H.S. Upendra Kamath, Chairman and Managing Director of Vijaya Bank said that the bank is planning to strengthen the credit delivery mechanism under the retail and small and medium enterprises (SME) segments. He said that the bank wants to build up capabilities within the bank so that it can boost up its retail (Personal Loan, Home loan etc) and MSME segment operations.
The bank has recorded a growth of 22 per cent in its Micro Small & Medium Enterprises (MSME) segment whereas the retail portfolio of the bank was at 8.2 per cent only during the 2010-11 fiscal.
Mr. H.S. Upendra Kamath said that the bank has planned to increase its retail portfolio up to at least 20 per cent in the current year, and the MSME advances to 30 per cent.
He also said that the bank will ensure that there is more concentration on the retail parameterised loan products rather than only mortgage-based products. He added saying that the bank does not have a centralised set-up for MSME advances at present but will be created in a year.