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Face To Face
In his illustrious banking career he has attended several Global Seminars and Conferences, widely travelled – USA, Europe, Middle and far East, been a member of delegation along with the Hon’ble President of India during her China visit in 2010.
He had the proud privilege of receiving the awards in 2010 such as SIDBI's CGFTMSE award from the hands of Hon’ble Finance Minister, National award for excellence in lending to Micro Enterprises – 2009-10 from the hands of Dinshaw Patel, Hon’ble Union Minister, National award for implementation of ISEC scheme of KVIC for 2009-10 from the hands of Dinshaw Patel, Hon’ble Union Minister.
His extensive knowledge in the entire gamut of Banking practices has always stood in good stead in discharging his duties. He is a proven leader who would always enhance the strength of an organization. Eastern Panorama recently sat down with Mr. H S Upendra Kamath to get his views on various matters related to banking. The following are exerpts of that interview.
EP: What are your areas of Priority?
HSUK: Vijaya Bank, a leading Public Sector Bank has had a glorious and successful journey for the last 79 years and I consider it as a privilege and honour for having got the opportunity to lead Vijaya Bank as Chairman & Managing Director. The Bank has a Pan India presence with 1200 branches and 546 ATMs spread across all the states and four Union Territories. The Bank is one of the early adopters of technology with all its branches including remote rural branches networked under Core Banking Solution (CBS) platform. Backed by modern technology, the Bank has a host of IT enabled products viz., Internet Banking , Mobile Banking, SMS alerts, Online trading in shares, ATMs , NEFT, RTGS, ASBA, e- payment of taxes etc in its offerings., The Bank has been consistently making profits quarter after quarter reflecting its strong fundamentals.
Going forward, I have identified the following areas of priority:
a) Increasing the CASA share of the Bank to 30% in the next two years from the present level of around 25%.
b) We have fine tuned some our Retail products like Vijaya Home Loan, V- Rent, V –Secured OD and Jewel Loan. The Retail Asset Centralised Processing Centres (RACPCs) which are presently operating in 11 centres will be further strengthened to boost our retail credit portfolio. We plan to scale up Retail credit growth to at least 20% during 2011-12.
c) Having achieved a growth of 25% under MSME last year, we want to improve it further at a growth rate of 30% during the current year. We are also looking at bringing MSME loan processing also under Centralised Processing system to reduce the turn around time for sanction.
d) Laying special thrust on Priority Sector and Agricultural credit
e) Re focussing on Forex and NRI business
f) Having introduced system driven NPA tracking fully last fiscal, we will focus on recovery during the current year to contain our Gross NPA and Net NPA below 2 % and 1% respectively.
g) Taking advantage of our IT capabilities, we will be aggressively pushing forward all our IT enabled Alternative Delivery Channels to ensure enhanced customer satisfaction.
h) Actively pursuing Financial Inclusion Plan drawn in line with the RBI / GOI guidelines.
The Corporate Goal for the current year is "Year of Recovery and Retail".
EP: Do you have a plan for massive expansion of your bank branches? If so, what is your thrust area?
HSUK: We have a branch and ATM network of 1200 and 546 at present. We are planning to add 100 more branches and around 200 more ATMs during the current year to take the total branch and ATM network to 1300 and 746 respectively.
EP: Your presence in the North Eastern Region is comparatively poor compared to State Bank of India. Do you have any special plan for North East?
HSUK: I am pleased to clarify that Vijaya Bank is the first Bank from the South to open branches in all the seven states of the North Eastern Region. Our first branch was opened in Assam way back in the year 1974. We have totally 31 branches, 1 Extension Counter and 9 ATMs in the Region. We are going to further expand our base in the NE Region and in the process we have plans to add 10 branches during the current year.
EP: How strong is your rural sector credit?
HSUK: As you may be aware, the Bank was founded in the year 1931 by a group of enlightened farmers in the coastal district of Mangalore in Karnataka with a noble objective of extending credit facilities to local farmers at a lower rate of interest and to promote a banking habit among them at a time when the farming community was in the clutches of money lenders and farming was in distress. Taking forward the vision of the founders, the Bank has been continuously playing a pivotal role in rural credit dispensation.
- The Bank has a large network of rural and semi-urban branches constituting around 44% of the total branches focussing on the credit and other banking needs of farmers, rural artisans, small entrepreneurs, self employed persons, SC/ ST beneficiaries, women beneficiaries, Minority communities, weaker sections etc.,
- The Bank is one of the pioneers in agricultural finance and Vijaya Krishi Card (VKC), a highly flexible comprehensive line of credit to farmers, similar to the present day Kisan Credit Card Scheme was introduced by the Bank way back in 1989 even before the GOI / NABARD advised introduction of Kisan Credit Card to farmers. The scheme was subsequently realigned with the Kisan Credit Card Scheme of NABARD. Going a step further, the Bank has also introduced ATM enabled Kisan Card for the benefit of farmers.
- The Bank has been effectively and successfully discharging its Lead Bank responsibility in three districts viz., Mandya, Dharwad and Haveri in the state of Karnataka to ensure adequate credit flow to the Priority & Agricultural sectors and also implementation of various Government sponsored schemes.
- The Bank has been actively participating in SHG credit linkage and has cumulatively credit linked 144031 groups involving 965 crore and the Bank has received awards from NABARD in recognition of its efforts in SHG credit linkage.
- The Bank has set up Vijaya Bank Self Employment Training Institutes (VIBSETIs) in 3 centres viz., Mandya, Haveri and Indore for providing free residential training programmes to rural youth to enable them to take up self employment ventures. In these centres unique training programmes are also conducted exclusively for jail inmates to enable them to take up income generating self employment activities when they come out of jail and join the main stream.
- Vijaya Rural Development Foundation (VRDF) has been set up by the Bank in the year 1990 to provide training programmes / conduct extension programmes in the filed of agriculture, health , education , self employment, rural industries etc.,
- As a part of Financial Inclusion programme, the Bank has drawn a time bound Financial Inclusion Plan to bring rural families in allotted 377 villages into formal banking fold. Under the Programme, Vijaya Vikas Smart Cards (Biometric Smart Cards) are successfully used to take banking to the doorsteps of the people in remote villages, without requiring the people to visit the bank branch. Apart from this, the Bank is actively participating in the Electronic Benefits Transfer (EBT) Programme of the Government through smart cards.
- As a part of Financial Literacy efforts, our Bank has floated Jnana Jyothi Financial Literacy and Credit Counselling Trust (JJFLCCT) in Karnataka, jointly with the SLBC Convenor Bank, to set up and manage Financial Literacy and Credit Counselling Centres. These Centres aim at providing Financial Literacy and Credit counselling services to farmers and other rural households.
- The Bank has established Visveshvaraya Grameena Bank, a Regional Rural Bank in Mandya District of Karnataka which exclusively meets the credit and banking needs of farmers and rural mass.
EP: Which particular field of economy will receive greater financial credit from you?
HSUK: While we are meeting credit needs of all the sectors and sections of the economy, we do ensure that adequate credit flows to priority sectors like the agricultural sector, Micro and Small Enterprises, Housing, Education, Self Help Groups / Micro credit, Small Transport Operators, Women beneficiaries, Weaker Sections, SC /ST , Minority Communities etc., The Bank is also lending to Infrastructure sector and Large Industries. Besides the above, the Bank is having a basket of retail lending schemes tailor made for different segments of retail customers viz., Vijaya Home Loan, V-Cash – Loan against salary, V- Rent- loan against rent receivables, V- Secured OD- OD against property for business activities, V-Wheels – Loan for purchase of vehicles etc. As mentioned earlier, the Bank is laying special thrust on Agricultural credit, MSME and retail credit during the current year.
