VIJAYA BANK HISTORICAL BACKGROUND

HISTORICAL BACKGROUND OF VIJAYA BANK:

YEAR EVENTS 1980 - The Bank came into existence on 15^th April as a consequence of the Government of India taking over the undertaking of Vijaya Bank Ltd. The Bank is engaged it transacts all types of banking business including foreign exchange and it is a Government undertaking.

In the year 1984 - Capital worth Rs.10 lakhs was subscribed by Government of India.

In1985 - The Bank sponsored its first Regional Rural Bank under the name and style "Visweswaraya Grameena Bank" in March. This Regional Rural Bank would cater to the needs of the target group belonging to Mandya district of Karnataka State. The government has subscribed Vijaya Bank capital worth Rs.772 lakh in the year 1985 and Rs.1000 lakh in the year 1986 and Rs.800 lakh in 1989 and Rs.2500 lakh in the year 1991 and Rs.2500 lakh in 1992. The novel scheme of `Vijaya Vichar Vihar' was introduced by the Bank in 1989 and is now flourishing in 25 centres as on March. In October a new and unique scheme viz. 'VIJAYASHREE UNITS DEPOSIT SCHEME' combining the features of term deposit and the flexibility of savings bank deposit was launched.

The Bank introduced ‘Vijaya Stockinvest’ scheme in May. To make it more investor friendly the special features of Vijaya Shree Units Scheme were incorporated to this scheme and the scheme is gaining in popularity among the investing public.

The Government has subscribed Rs.5000 lakhs in the year 1993. The Bank has installed 68 ALPMs in 25 branches. The 'Vijaya Bank Diamond Jubilee Scholarship Scheme' was introduced as a part of Diamond Jubilee Celebrations of the Bank with the objective of awarding scholarships to its permanent employees children.

1994 - Rs 6500 lakhs subscribed by Government. The Bank had entered into the Memorandum of Understanding with the Reserve Bank of India undertaking to fulfill definite performance commitments. The Bank introduced the new schemes viz. Vijaya Gift Bond Scheme and Vijaya Service Card for enlarging its services to its business clientele. The Bank introduced three new loan schemes viz. V-Cash meant for salaried class V-Equip for professionals and V-Stock for individual investors.

The Bank launched its "V-Invest" Scheme in January. 1995. Vijaya Bank introduced three new loan schemes namely 'Vijaya Nivruthi' 'Vijaya Krishi Vikas' and 'Vijaya Mangala' to cater to the credit needs of pensioners farmers and working women respectively.

1997 - Vijaya Bank has introduced a novel way to improve customer service. Vijaya Bank has launched a special agriculture credit plan targeted specifically at agriculture and other rural advances. The bank launched the ‘special loan recovery motivation scheme’.

1998 - Vijaya bank has introduced a jewel scheme under which loans are granted by the bank to fund the purchase of Jewellery by keeping the purchased item as collateral till the loan has been repaid. The Bank has entered into domestic correspondent Banking arrangements with various private sector banks and foreign banks.

1999 - Vijaya Bank has entered into a Rs.200-crore take-out financing agreement with the and Urban Development Corporation (Hudco) for funding infrastructure projects. The Housing and Urban Development Corporation (Hudco) has entered into a three-year reversible securitisation deal with the public sector Vijaya Bank to raise funds for meeting some of its infrastructure financing commitments.

2000 - Vijaya Bank has introduced a new scheme named V-Star savings bank account scheme. Vijaya Bank is increasing its focus on technology and given the VRS pressure on its HR the bank set up more networked ATMs.

2003 -Vijaya Bank signs a pact with LIC to offer Life insurance cover to all its existing as well as its new deposit-holders. -Vijaya Bank has named its merchant bankers for its public issue amounting to Rs.100crand slated to be released from the next month.

Bank has decided to amalgamate its own subsidiary VIBANK Housing Finance Ltd. Vijaya Bank has opened a Kiosk that is exclusively for retail lending at its Ashoknagar Branch in Mangalore. Bank has signed MoU with Punjab National Bank and Principal Financial Group of USA for a joint venture participation in Asset Management Company. Vijaya Bank decides to open training centre for employees in Bangalore. The Union government has bought back Rs.240-crore high-yielding government securities from Vijaya Bank.

2004 - Vijaya Bank has entered into a memorandum of understanding (MoU) with two tractor manufacturers International Tractors and Mahindra Gujarat Tractors to provide finance on softer terms to farmers for purchase tractors and power tillers VIJAYA Bank signs pact with Nabard to co-finance agriculture agro processing hi-tech agriculture and rural development projects. Vijaya Bank launched the bank's second city specific credit card - the 'Hyderabad Card'. The branch of Bangalore-based Vijaya Bank has launched a new credit facility for farmers who are caught up in the clutches of private money-lenders and help them to improve their financial status.

Vijaya Bank ties up with New Holland Tractors .and also Vijaya Bank ties up with National Insurance company.

In the year 2005 Vijaya Bank ties up with TAFE.

In the year 2008 Vijaya Bank signed a memorandum of understanding with credit rating agency Crisil for rating its corporate customers.

Vijaya Bank has inked a pact with Credit Analysis & Research Ltd (CARE) one of the RBI accredited rating agency to provide bank loan ratings to its corporate clients at a concessional fee.

2009- The bank has opened 57 Branches and 3 Extension Counters. Vijaya Bank is one among the few banks in the country to take up principal membership of VISA International and MasterCard International.

Management:

Today, living upto the ideals of the visionaries of the bank, the management includes dedicated professionals, who living with them a considerable amount of expertise and experience in the banking industry.

Organisation structure:

The Bank a three tier Organisation structure.

Head Office,

Regional Office and Branches.

The Head Office hosts various functional departments that are instrumental in policy formulations and monitoring of performances of the regions and branches.

The Bank’s 20 Regional Offices exercise immediate supervision and control over the branches under their jurisdiction

Directors (Position – 21.11.2009):

Currently, the Bank’s board of directors consists of:

Shri. Albert Tauro, Chairman & Managing Director

Smt. S.A. Panse, executive Director.

Shri. G.B. Singh, Govt. Nominee Director.

Shri. K.Venkatappa, RBI Nominee Director.

Shri. P. Shantharam Shetty, Workmen Director.

Shri. Ranjan Shetty, Officer-employee Director.

Shri. Brij Mohan Sharma, Non Official Director

(Chartered Accountant Category)

Shri. Ashok Kumar Shetty, Shareholder Director.

Shri. Ashok Kumar Shetty, Shareholder Director

Shri. Nishank kumar Jain, Non Official Director

Shri. Sridhar Cherukuri, Non Official Director

Shri. S.Ananthan, Shareholder Director

Shri. B.Ibrahim, Non Official Director

General Mangers

General Mangers – 21.11.2009):

Shri. S.Jayaram Shetty.

Shri. K.Jayakar Shetty

Shri. V.Mohandas Shetty.

Shri. J.Pandiyan

Shri. Shanharam Kamath

Smt. K.Chandra

Shri. Prakashchandra Shetty

Shri. B. Divakara Alva

Shri. C.R Chandramouli (Chief Vigilance Officer)

Sri. M.B Gurumurthy

General Mangers at Regional Office

Shri. Vasant Kumar Shetty G. : Regional Office, Delhi.

Shri. K.Shahidhar Rao : Regional Office, Mumbai

Shri. B.A.Ullas Rai : Regional Office, B’lore (S)

OVERVIEW OF VIJAYA BANK ON HOUSING LOAN:

INTRODUTION OF HOUSING LOAN:

Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India.

And the most important thing is you should know about each and every term related with Home Loans before applying for a Loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property.

You can take different types of home loans like Bridge Loans, Home construction Loans, Home Equity Loans, Home Extension Loans, Home Improvement Loans, Land Purchase Loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs.

TYPES OF HOUSING LOAN

Home purchase loans

Home improvement loans

Home construction loans

Home extension loans

Home equity loans

Land purchase loans

Bridge loans

Mortgage loans

Home Purchase Loans:

These are the basic forms of home loans used for purchasing of a new home.

Home Improvement Loans:

These loans are given for implementing repair works, healing and renovations in a home that has already been purchased.

Home Construction Loans:

These loans are available for the construction of a new home.

Home Extension Loans:

These loans are given for expanding or extending an existing home. For eg: addition of an extra room etc.

Home Conversion Loans:

These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.

Land Purchase Loans:

These loans are available for purchasing land for both construction and investment purposes.

Bridge Loans:

Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.

Why take a Home Loan?

What's an average middle class Indian's most cherished dream? A date in world trips in islands with Aishwarya Rai in complete solitude. This would seem to be the answer from the maximum number of episodes of Kaun Banega Crorepati (KBC), despite recently of course, when she has decided to change her fortunes first with Abhishek!

Jokes apart, purchasing and moving into a dream house would generally rank among the top three things on the wish list of most people. After all it’s what been proved by Maslow’s Law of Hierarchy as well. That entire house hunting every few years, grumpy landlords, killing rents would be a thing of the past. Hey, you even get to use nails to hang your favorite paintings and pictures. Don’t you???

Taking a home loan nowadays has become very simpler. The RBI has been regularly slashing interest rates, with the result that housing finance loans that came at an interest rate of 16.5% to 18% four years ago are now available at 11.5% to 13% or lower. Each year the Finance Minister's generosity during the Budget seems to be solely concentrated for the housing sector and construction sector. The Budget 2000's allowed interest payment up to Rs 1 lakh and principal payment of Rs 20,000 to be exempted from income tax. To top it all, the Housing Finance Companies (HFCs) are aggressively wooing customers. Now, when the sun shines, it’s the best time to make hay. Isn’t it?

Vijaya bank Housing loan

PURPOSE:

For construction of a house building in the plot/site already purchased /owned

For purchase of a plot/site and a house building thereon.

For purchase of a new house/flat.

For purchase of old house /flat of age of 30 years and below.

For Repairs, Renovation (including cost of kitchen Cabinet, racks, wardrobes, electrical/solar power fittings) of existing house of age 50 years and below (HOME IMPROVEMENT LOAN).

For extending the existing house building HOME EXTENSION LOAN.

Short term Bridge Finance for the interim period between sales of the existing/ old house and purchase of a new house (HOME BRIDGE LOAN) –to the extent of 80% of market price of the existing house or 80% of cost of the new house to be purchased whichever is less but invariably against the Security of new house.

For taking over of the existing Housing loans availed from other Banks/Other lending Companies/Agencies

Eligibility:

Individuals with minimum age of 21 years and Maximum age of 55 years are eligible

The applicant/beneficiary shall have sufficient income to repay the loan along with the interest within sanctioned period.

In case of salary income alone is considered for deciding the quantum of loan, such salaried persons should be in permanent service and not probationers: Persons nearing superannuation getting retirement benefits sufficient to cover the Loan applied can also be considered.

Ex- Staff members family and relatives of staff members / Ex - Staff members who have independent income are also eligible.

Quantum of Loan:

Minimum loan amount - Rs. 1.00 lakh

Maximum loan amount - Rs. 100 lakhs - on need based as per the cost less stipulated margin subject to loan entitlement.

In case of Repairs/Renovation - maximum is Rs. 10 Lakhs

Housing loan of less than Rs.1 lakhs can also be considered under Swarna Jayanti / Golden Jubilee Scheme in rural / Semi - Urban places.

Loan entitlement:

Salaried Person : Up to 60 month’s gross salary For Others : Up to 60 times of Monthly average income (Monthly average of past 24 months)

Margin:

20% of the cost in general. The cost shall include Land cost, Stamp duty, Registration charges, Fixtures like Ward Robes, Pelmets, Dressing Mirror, Kitchen cabinets / racks, Geysers etc.

Re-payment

For Salaried Persons:

A maximum repayment period of 20 years or up-to the date of superannuation (including a moratorium /repayment holiday of maximum of 18 months for construction of houses and 6 months for repair of houses) whichever is earlier may be allowed. In case of outright purchases of ready built house/flat, no repayment holiday shall be granted.

For others (Other than Salaried class)

Same guidelines as applicable to Salaried class subject to maximum repayment period of 20 years or 65 years of age of the applicant whichever is earlier (inclusive of maximum repayment holiday of 18 months in case of loans for construction and 6 months for repairs to existing houses).18 months: generally in Equated Monthly Installments (EMI).

Flexible / Variable EMI’s may also be fixed

In cases of availability of higher liquid collateral securities like FD’s, SV of LIC’s, NSC’s / KVP’s, EMI will be fixed by reducing total value of such securities from the total loan amount sanctioned.

In case of considerable increase in salary/ income if any in future, the EMI may be re-calculated if the borrower so requests.

Security

The branches shall obtain the security of the site and building / flat constructed / to be constructed / to be purchased for which the finance is being extended, subject to satisfactory valuation and applicant’s clear marketable title / free from encumbrance the property.

Guarantor

The guarantee from spouse / major children to be insisted. If the property is in joint names, the co-owner should be taken as co-applicant. If the income of the spouse is reckoned for computation of loan amount and repayment, the spouse to join as co-applicant.

Incentives

As an incentive a personal loan (V Cash) equivalent to 12 months EMIs repayable in 36 months will be extended against the continuing security of House property already mortgaged to the Bank, in cases of track record of prompt repayment of 12 EMIs.

Pre-payment Charges

Penalty of 1% of the amount for pre-closure switchover to other bank within 5 years of availing the loan is levied on the balance outstanding

Prepayment /Pre –Closure Charges:

Types of service /Details Individuals / Non-Corporates Corporates Special Category People (Pensioners, Senior Citizens and Individuals in rural areas).

These details are upto 2009-10.