BANK PROFILE INTRODUTION OF VIJAYA BANK :
Vijaya Bank was founded on 23rd October 1931 by late Shri A.B.Shetty and other enterprising farmers in Mangalore, Karnataka. The objective of the founders was essentially to promote banking habit, thrift and entrepreneurships among the farming community of Dakshina Kannada district in
Vijaya Bank steadily grew into a large All India bank, with nine smaller banks merging with it during the 1963-68. The credit for this merger as well as growth goes to late Shri M.Sunder Ram Shetty, who was then the Chief Executive of the bank. The bank was nationalized on 15th April 1980. The bank has built a network of 1158 branches,46 Extension Counters and 435 ATMs as at 31.03.2010, that span all 28 states and 4 union territories in the country.
Each branch provides effective and efficient services and significantly contributes to the growth of the individual, and the nation. Vijaya Bank has the highest number of branches in its home state Karnataka.
During the financial Year 2009-10, the bank has opened 57 Branches and 3 Extension Counters.
In line with the prevailing trends, the bank has been giving greater thrust towards technological up gradation of its operations. The bank has network of 1158 branches, 46 Extension Counters and 435 ATMs.
All 1158 branches,46 extension counters, 12 service branches are functioning on CBS platform, and at 758 centers, covering 100 % of Bank business.
Realizing your constantly evolving and diverse needs, the bank has diversified too. Entering several new areas such as credit card, merchant banking, hire purchase and leasing, and electronic remittance services. 1234 Branches / offices are under RTGS / NEFT.
Vijaya Bank is one among the few banks in the country to take up principal membership of VISA International and MasterCard International.
The driving force behind Vijaya Bank's every initiative has been its 11565 strong dedicated workforce.
MAJOR OBJECTIVES OF VIJAYA BANK:
Minimize the impact of crisis situation in the financial system.
To optimize utilization of supervisory resources.
Continuous monitoring and evaluation of the risk profile.
To ensure banks have adequate capital to support all risks’
To expand retail credit
To open more branches, mostly in urban/metro centers.
To computerize all the branches.
The bank aims to achieve increasing their total business levels.
To install additional 250 ATMs and network through a switch.
PROGRESSES MADE BY VIJAYA BANK:
Board level sub-committee and R M Committee of executive
Scientific Asset-liability Management system is in place.
‘Entry level screening’ of large borrower proposals.
Preparation of risk profile of the bank on yearly basis with Quarterly update.
Independent risk management department and compliance Cell has been set
up.
95% of bank total business is computerized and will achieve 100% by
31.12.2010.
Implementing core banking and anti-money laundering solution.
Independent internal audit department and evaluation of the internal control
Risk assessment on location-wise.
The high risk area is subject to audit more frequently than the low risk area
PERCEPTION OF VIJAYA BANK:
Stability of the financial system is the challenge to bank regulators and
supervisors.
Capital should not be a substitute for fundamentally inadequate control or
risk
Management process
The reserve bank of
For rating banks
The reserve bank of
and efficiency levels of its supervisory processes.
PROCESSES OF VIJAYA BANK:
The risk profile of bank will draw upon the sources of information, besides CAMELS rating ,such as
Off-site surveillance and monitoring data.
Market intelligence reports.
Ad-hoc data from external and internal auditors.
Information from other domestic and overseas supervisors.
On-site finding.
Sanctions applied etc,
principles of supervisory review of Vijaya Bank:
Bank level management should assets their overall capital adequacy requirement.
Supervisors should review and evaluate banks capital adequacy and if required, take appropriate action.
Supervisors should ensure that banks operate at capital levels above capital levels the minimum required in accordance with the risk undertaken by bank.
Supervisors should intervene at early stage and take remedial action if required.
CHALLENGES OF VIJAYA BANK:
Change management.
Deep understanding of risk management at all levels and clearly articulated.
Focused and robust MIS with adequate frequency and data integrity.
Human Resources Development issues like skilled staff; proper placement, requirement/promotion policy, training etc.
Suitable tools to measures and monitor risk exposures.
Considerable financials and managerial resources.
DEVELOPMENTAL AND REGULATORY POLICES:
Status quo maintained on the administered interest rate.
A screen based negotiation quote-driven system for all dealings in call/notice and term money market transactions is proposed.
The minimum maturity period of certificate deposits reduced from 15 days 7 days with immediate effect.
The settlement system for transaction in government securities will be standardized.
Banks to be allowed to approve proposals for commodity hedging in international exchanges from their corporate customers.
RBI has set up an export group to formulate strategy for increasing investment in agriculture.
Banks are urged to continue their efforts to step up credit to agriculture.
RBI is in the process of reviewing the performance of RRBs and exploring restructuring of RRBs.
The RBI will explore modalities to meet the growing financial needs of medium enterprises.
Issue regarding priority sector lending needs to be debated and examined in depth.
RBI to set up independent banking codes and standards board of
Enhanced banking ombudsman scope to cover all individual cases/grievance relating to non-adherence to the fair practice code.
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