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Introduction

Banking in India has a long and elaborate history of more than 200 years. The

beginning of this industry can be traced back to 1786, when the country‘s first

bank, Bank of Bengal, was established. But the industry changed rapidly and

drastically, after the success. However, many traditional banks have also

expanded to offer online banking, and some formerly Internet-only banks are

opting to open branches.

Savings banks and savings and loan associations , sometimes called thrift

institutions, are the second largest group of depository institutions. They were

first established as community-based institutions to finance mortgages for

people to buy homes and still cater mostly to the savings and lending needs of

individuals.

Credit unions are another kind of depository institution. Most credit unions are

formed by people with a common bond, such as those who work for the same

company or belong to the same labor union or church. Members pool their

savings and, when they need money, they may borrow from the credit union,

often at a lower interest rate than that demanded by other financial

institutions.

Federal Reserve banks are Government agencies that perform many financial

services for the Government. Their chief responsibilities are to regulate the

banking industry and to help implement our Nation‘s monetary policy so our

economy can run more efficiently by controlling the Nation‘s money supply—

the total quantity of money in the country ,including cash and bank deposits.

For example, during slower periods of economic activity, the Federal Reserve

may purchase government securities from commercial banks, giving them more

money to lend, thus expanding the economy. Federal Reserve banks also

perform a variety of services for other banks. For example, they may make



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emergency loans to banks that are short of cash, and clear checks that are

drawn and paid out by different banks.

Interest on loans is the principal source of revenue for most banks, making

their various lending departments critical to their success. The commercial

lending department loans money to companies to start or expand a business or

to purchase inventory and capital equipment. The consumer lending

department handles student loans, credit cards, and loans for home

improvements, debt consolidation, and automobile purchases. Finally, the

mortgage lending department loans money to individuals and businesses to

purchase real estate.

The money to lend comes primarily from deposits in checking and savings

accounts, certificates of deposit, money market accounts, and other deposit

accounts that consumers and businesses set up with the bank. These deposits

often earn interest for the owner, and accounts that offer checking provides an

easy method for making payment safely without using cash. Deposits in many

banks are insured by the Federal Deposit Insurance Corporation, which

ensures that depositors will get their money back, up to a stated limit, if a

bank should fail.

Technology is having a major impact on the banking industry. For example,

many routine bank services that once required a teller, such as making a

withdrawal or deposit, are now available through ATMs that allow people to

access their accounts 24 hours a day. Also, direct deposit allows companies

and governments to electronically transfer payments into various accounts.

Further, debit cards, which may also use as ATM cards, instantaneously

deduct money from an account when the card is swiped across a machine at a

store‘s cash register. Electronic banking by phone or computer allows

customers to pay bills and transfer money from one account to another.

Through these channels, bank customers can also access information such as



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account balances and statement history. Some banks have begun offering

online account aggregation, which makes available in one place detailed andup-to date inf ormation on a customer‘s accounts held at various institutions.

Advancements in technology have also led to improvements in the ways in

which banks process information. Use of check imaging, which allows banks to

store photographed checks on the computer, is one such example that has

been implemented by some banks. Other types of technology have greatly

impacted the lending side of banking. For example, the availability and growing

use of credit scoring software allows loans to be approved in minutes, ratherthan days, making lending departments more efficient.

Other fundamental changes are occurring in the industry as banks diversify

their services to become more competitive. Many banks now offer their

customers financial planning and asset management services, as well as

brokerage and insurance services, often through a subsidiary or third party.

Others are beginning to provide investment banking services that help

companies and governments raise money through the issuance of stocks andbonds, also usually through a subsidiary. As banks respond to deregulation

and as competition in this sector grows, the nature of the banking industry will

continue to undergo significant change.

Structure

The Indian banking system can be classified into nationalized banks, private

banks and specialized banking institutions. The industry is highly fragmented

with 30 banking units contributing to almost 50% of deposits and 60% of

advances. The Reserve Bank of India is the foremost monitoring body in the

Indian Financial sector. It is a centralized body that monitors discrepancies

and shortcomings in the system.



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Industry estimates indicate that out of 274 commercial banks operating in the

country, 223 banks are in the public sector and 51 are in the private sector.

These private sector banks include 24 foreign banks that have begun their

operations here. The specialized banking institutions that include cooperatives,

rural banks, etc. form a part of the nationalized banks category.

Origin of the word

The name bank derives from the Italian word banco "desk/bench", used during

the Renaissance by Florentine bankers, who used to make their transactions

above a desk covered by a green tablecloth. However, traces of banking activity

can found even in ancient times. In fact, the word traces its origins back to the

Ancient Roman Empire, where moneylenders would set up their stalls in the

middle of enclosed courtyards called macella on a long bench called a bancu,

from which the words banco and bank are derived. As a moneychanger, the

merchant at the bancu did not so much invest money as merely convert the

foreign currency into the only legal tender in Rome- that of the Imperial Mint.

Indian Banking – Trends& Developments

The last three decades have demonstrated a significant increase in the size,

spread and scope of activities of banks in India. The business profile of banks

has changed significantly to include non-traditional activities such as

merchant banking, new financial services, mutual funds, etc. The evolution

from class banking to mass banking and rising customer focus is immenselychanging the landscape of Indian banking.

Payments and banking transactions through mobile phones in India are

likely to reach US$350 billion by 2015, according to global management

consulting firm, The Boston Consulting Group (BCG). This, in turn, will



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provide banks, telecom operators, device makers and service providers

an opportunity to earn fee income of US$4.5 billion

With an objective of increasing the financial inclusion, the SBI has

opened 21 new branches, besides, 101 new Automatic Teller Machines

(ATMs) and 400 green channel counters.

Around 350,000 villages spanning the entire India would have access to

financial services offered by banks in the next two financial years,

according to a plan given by banks to the RBI. RBI has directed banks to

ensure that 223,473 villages have access to basic financial services by

March 2012

Three local banks have partnered with a global financial technology firm

- Polaris Software with its headquarters in India - to establish a joint

venture IT Company in Bangladesh. The company would start with

providing software solutions to these three banks before selling

customized services to other banks, non-bank financial institutions and

insurance companies

Indian Banking – Key Investments

Standard Chartered Private Equity (SCPE) said that it has invested US$

56 million in Ravi Jaipuria-promoted Varun Beverages International

(VBIL), buying a "significant minority" stake in the bottling firm. The

funds would be used to fast-track VBIL's growth in its beverages

business in India and in foreign countries

South Indian Bank has signed a service agreement with TimesofMoney,an e-payments service provider to offer remittance solutions to Non

Resident Indians (NRIs) in selected countries. The service would enable

NRIs to get a strong transaction platform along with better pricing and

safety, besides speedy money transfer.



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Government Initiatives

The policy makers for the banking sector, which comprise the Reserve Bank of

India (RBI), Ministry of Finance and related government and financial sector

regulatory entities, have made several notable efforts to improve regulation in

the sector. These changes include:

Strengthening prudential norms

Developing the payments system and,

Integrating regulations between commercial and co-operative banks

To support capitalisation, the government has infused Rs 23,200 crore

(US$ 5.2 billion) into state-owned banks during the last three fiscals

The RBI has said that for each branch that is proposed to be opened in

Tier 3 to Tier 6 centres of under-banked districts of under-banked States,

a bank will get the authorization to open a branch in a Tier 1 or Tier 2

centre. This incentive to banks comes on the back of the continuing need

to open more branches in these States in order to ensure more uniform

spatial distribution

With financial inclusion being a key program for RBI and the

government, the central bank has decided to give private banks a push to

go rural. The RBI has, in its circular, said that banks should open at

least 25 per cent of the branches under the annual branch expansion

plan in un-banked rural centres.



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Indian Banking - Road Ahead

The Indian banking story is running in parallel with India‘s growth story. With

economic growth of India expected to average at double-digit for the current

decade, the banking sector is also poised for growth as the factors contributing

to the growth of GDP would act as catalysts for the banking sector as well – in

retail, corporate as well as rural banking. By 2017, the average consumption in

rural India will be the same as of urban India in 2005, according to a McKinsey

study. As a result, India‘s labour force will grow at a higher rate than

population growth and therefore, the ratio of working age population to total

population will be on the rise, and it will be more urban, rich and educated.

This will result in a higher flow of savings to the banking system.

Consumer credit is expected to drive future growth of the sector. Further,

India‘s mortgage loan and wealth management business will grow 10 times by

2020, according to the estimates put by Boston Consulting Group (BCG). An

under penetrated market, both in terms of number of accounts and number of

borrowers, the banking segment in India holds huge potential for the future.

Role of Banks:

Banks play a positive role in economic development of a country as repositories

of community‘s savings and as purveyors of credit. Indian Banking has aided

the economic development during the last fifty years in an effective way. The

banking sector has shown a remarkable responsiveness to the needs of

planned economy. It has brought about a considerable progress in its efforts at

deposit mobilization and has taken a number of measures in the recent past

for accelerating the rate of growth of deposits. As recourse to this, the

commercial banks opened branches in urban, semi-urban and rural areas and



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have introduced a number of attractive schemes to foster economic

development.

The activities of commercial banking have growth in multi-directional ways as

well as multi-dimensional manner. Banks have been playing a catalytic role in

area development, backward area development, extended assistance to rural

development all along helping agriculture, industry, international trade in a

significant manner. In a way, commercial banks have emerged as key financial

agencies for rapid economic development.

By pooling the savings together, banks can make available funds to specialized

institutions which finance different sectors of the economy, needing capital for

various purposes, risks and durations. By contributing to government

securities, bonds and debentures of term-lending institutions in the fields of

agriculture, industries and now housing, banks are also providing these

institutions with an access to the common pool of savings mobilized by them,

to that extent relieving them of the responsibility of directly approaching the

saver. This intermediation role of banks is particularly important in the early

stages of economic development and financial specification. A country like

India, with different regions at different stages of development, presents an

interesting spectrum of the evolving role of banks, in the matter of inter-

mediation and beyond.

Mobilization of resources forms an integral part of the development process in

India. In this process of mobilization, banks are at a great advantage, chieflybecause of their network of branches in the country. And banks have to place

considerable reliance on the mobilization of deposits from the public to finance

development programmes. Further, deposit mobilization by banks in India

acquired greater significance in their new role in economic development.



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Commercial banks provide short-term and medium-term financial assistance.

The short-term credit facilities are granted for working capital requirements.

The medium-term loans are for the acquisition of land, construction of factory

premises and purchase of machinery and equipment. These loans are generally

granted for periods ranging from five to seven years. They also establish letters

of credit on behalf of their clients favoring suppliers of raw

materials/machinery (both Indian and foreign) which extend the banker‘s

assurance for payment and thus help their delivery. Certain transaction,

particularly those in contracts of sale of Government Departments, may require

guarantees being issued in lieu of security earnest money deposits for release

of advance money, supply of raw materials for processing, full payment of bills

on the assurance of the performance etc. Commercial banks issue such

guarantees also.

Scope

The Banking sector is considered the most lucrative option in today‘s jobmarket. In the industry, a position in Treasury or Forex is considered right on

top and this is followed by careers in Private Banking, Investment Banking and

Retail Banking. One could work in a

variety of areas in banking industry including Recurring Deposit account,

banking officer, probationary officer, loan officer, assessor, personal loan

officer, home loan officer, home loan agent, loan manager, mortgage loan

underwriter, loan processing officer, accountant, product marketing and salesexecutive, and customer service executive among others.

In the Financial Services, some of the important jobs include that of a

stockbroker who is essentially a person who buys and sells securities on behalf

of individuals and institutions for some commission. While some brokers like to



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practice with individual clients others work for institutions. Brokers who work

for institutional investors are often called securities traders. Many prefer towork as dealers, advisors and securities analysts. Security analysts are those

who advise companies on floatation‘s of shares as they are expected to have

sound knowledge of capital markets.

Investment analysts are the backbone of the financial services sector. They

study the financial reports of companies, assess various statistical information,

profitability, projections, compare financial results, survey the industry as a

whole and on the basis of the available information, and finally conclude to adecision. Equity Analysts do jobs similar to investment analysts and research

the equity markets and make predictions



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Industry profile

With economic liberalization measures many private and foreign banking

companies were allowed to operate in the country. Favorable economic climate

and a variety of other factors such as demand for wide range of financial

products from various sections of the society led to mutually beneficial growth

to the banking sector and economic growth process. This was coincided by

technology development in the banking operations. Today most of the Indian

cities have networked banking facility as well as Internet banking facility. A

customer is empowered to operate his account from any part of the country.

UTI Bank, ICICI, HDFC Bank and Bank of Punjab are the main winners of the

race.

Scope of Banking & Insurance Sectors in India

Diversifying into investment banking, insurance, credit cards, depository

services, mortgage financing, securitization has increased revenues. As large

number of players in various fields enters the market, competition would be

intensified by mutual funds, on Banking Finance Corporations (NBFCs), post

offices, etc. from both domestic and foreign players. All this would lead to

increased sophistication and technology in the sector. Corporate governance

would come into the picture and other financial institutions would have to

reach global standards. Also the limit for FDI in private banks is increased to

74% and the limit for FII is 49%. There are many challenges ahead for the

banking sector such as technology, consumer satisfaction, corporate

governance, risk management, etc. and they are redefining their priorities,

which are now focused on cost reduction, product differentiation and customer

centric services. Some of the major players in this sector are HDFC, ICICI,



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HSBC, State Bank of India, Punjab National Bank, IngVysya, ABNAmro Bank,

Centurion Bank, City Bank, etc.

The insurance sector has opened up for private insurance companies with the

enactment of IRDA Act, 1999. A large number of companies are competing

under both life and general Insurance. The FDI cap/equity in this sector is

26% and the proposals have to be cleared by Insurance Regulatory and

Development Authority (IRDA) established to protect the interest of holder of

Insurance policy and act as a regulator and facilitator in the industry. Some of

the major players in this sector are LIC, Max New York Life Insurance, Bajaj

Allianz, ICICI Prudential, HDFC Standard Life, MetLife Insurance, Birla Sun

Life Insurance, etc. Various types of policies and instruments are coming up in

the market to attract more customers. Most of the population of India is not

insured, hence there is a lot of scope in this sector and a number of companies

are planning to enter the sector. Every futuristic individual would want himself

to get insured.

Capital markets have a long history of over 100 years in India. Bombay Stock

Exchange came into existence more than a hundred years ago to remove direct

Government

.



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Major Players in the Industry

Allahabad Bank

Andhra Bank

Axis Bank Ltd.

Bank of Baroda

Bank of India

Canara Bank

Central Bank of India

HDFC Bank Ltd.

ICICI Bank Ltd.

Indian Bank

IndusInd Bank Ltd.

Industrial Development Bank of India Ltd.

ING Vysya Bank Ltd

Jammu & Kashmir Bank Ltd.

Karnataka Bank Ltd.

Karur Vysya Bank Ltd.

Kotak Mahindra Group

Lakshmi Vilas Bank Ltd.

Lord Krishna Bank Ltd

North Kanara G.S.B. Co-operative Bank

Oriental Bank of Commerce

PricewaterhouseCoopers Pvt. LtdPunjab & Sind Bank

Punjab National Bank

South Indian Bank Ltd.

State Bank of Bikaner and Jaipur



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State Bank of Hyderabad

State Bank of India

State Bank of Indore Ltd.

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

Company profile

VIJAYA BANK

Our mission is to emerge as a prime national

bank backed by modern technology meeting

customer’s aspirations with professional

banking services, and sustained growth

contributing to national development.



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Vijaya Bank:

A medium sized bank with presence across India was founded on October 23,

1931 by A. B. Shetty and other enterprising farmers in Mangalore, Karnataka

in India.. The objective of the founders was essentially to promote banking

habits, thrift and entrepreneurship among the farming community of Dakshina

Kannada district in Karnataka State.

http://en.wikipedia.org/wiki/Farmer

http://en.wikipedia.org/wiki/Dakshina_Kannada




http://en.wikipedia.org/wiki/Farmer



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The bank became a scheduled bank in 1958. Vijaya Bank steadily grew into a

large All India bank, with nine smaller banks merging with it from 1963-68.

The credit for this merger as well as growth goes to Shetty, who was then the

Chief Executive of the bank. The bank was nationalised on April 15, 1980.

Growth & Nationalisation

Vijaya Bank grew steadily by merging nine smaller banks into it between 1963-

68.Mulki Sunder Ram Shetty, who was then the Chief Executive of the bank is

largely credited with these mergers. The bank was nationalised on April 15,

1980. This is the first bank to bring credit card facility in the banking industry.

Branches

In line with the prevailing trends, the bank has been giving greater thrust

towards technological upgrading of its operations. The bank has network of

1158 branches, 46 extension counters and 435 ATMs. (as of March 31, 2010)

All 1158 branches, 46 extension counters, and 12 service branches are

functioning on the CBS platform, as well as at 758 centers, covering 100% of

Bank's business.

Thrust on Information Technology

The Bank has chosen Finacle from Infosys as centralized banking solution. In

line with the prevailing trends, the bank has been giving greater thrust towards

technological upgrading of its operations.The bank has network of 1200

branches, 49 Extension Counters and 551 ATMs. (as of June 30, 2011)

The bank has a network of 1200 branches, 49 extension counters and 551

ATMs. (As of June 30, 2011)

http://en.wikipedia.org/wiki/Scheduled_banks

http://en.wikipedia.org/wiki/Nationalised#India

http://en.wikipedia.org/wiki/Mulki_Sunder_Ram_Shetty

http://en.wikipedia.org/wiki/Nationalisation

http://en.wikipedia.org/wiki/Finacle

http://en.wikipedia.org/wiki/Finacle

http://en.wikipedia.org/wiki/Nationalisation

http://en.wikipedia.org/wiki/Mulki_Sunder_Ram_Shetty

http://en.wikipedia.org/wiki/Nationalised#India

http://en.wikipedia.org/wiki/Scheduled_banks



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The bank has diversified to meet constantly evolving and diverse needs. It is

entering several new areas such as credit card, merchant banking, hire

purchase and leasing, and electronic remittance services.

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 12107-

strong dedicated workforce.

Banking Regulation Act of India, 1949 defines Banking as ―accepting, for the

purpose of lending or of investment of deposits of money from the public,

repayable on demand or otherwise or withdrawable by cheque, draft order or

otherwise.‖ The Reserve Bank of India Act, 1934 and the Banking Regulation

Act, 1949, govern the banking operations in India.

Area of corporation

After obtaining the certificate of incorporation and certificate of commencementand getting the draft of the memorandum of association and articles of

association approved, Vijaya bank Ltd., started functioning as per the provision

of Indian companies act in a small bungalow with a tiled roof (Mangalore tiles)

on Kadri road in Mangalore.

Background

Type: PublicFounded; 1931 at Mangalore, India.

Headquarters: Bangalore, India

Key people: Albert Tauro, Chairman & Managing Director

Industry: Financial Commercial banks



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Employees: 12,107

Products and services

Deposit Schemes

1. Savings Bank

2. V Platinum Savings Bank Account

3. Vijaya Saral Savings

4. Current Account

5. VStar Savings Scheme

6. Term Deposit

Loans & Advances

1. Retail Lending Schemes

2.Loans against Securities

3.Non Fund Based Facilities

4.Advances to Agriculture, SSIs and Others

5.Government Sponsored Schemes

6.Special Schemes for Women

NRI Services

1. Deposits

2. Loans Remittances

3. FOREX Branches

4. FCNR (B) Branches

5. Helpline for NRIs

Remittance Collection and Facilities



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1. FOREX Remittances

2. Inland Remittances

3. Electronic Remittance Services

4. Inward / Outward Collection Instruments

Credit Cards

1. Domestic Cards

2. Global cards

3. Debit cards

Management

Today, living up to the ideals of the visionaries of the bank, the management

includes dedicated professionals, who bring with them a considerable amount

of expertise and experience in the banking industry.

Organization structure

Bank has a three tier Organization 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.



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DirectorsCurrently, the Bank's board of directors consists of :

1. Shri. H.S Upendra Kamath, Chairman & Managing Director

2. Smt. Shubhalakshmi Panse, Executive Director

3. Shri. L K Meena, Govt. Nominee Director

4. Smt. Suma Varma, RBI Nominee Director.

5. Shri. Suresh Kamath, Workmen Director.

6. Shri. Ranjan Shetty, Officer-employee Director

7. Shri. B. Ibrahim, Non Official Director

8. Shri. Ashok Kumar, I.A.S (Retd.), Shareholder Director.

9. Shri. Ashok Kumar Shetty, Shareholder Director.

10. Shri. S. Ananthan, Shareholder Director

11. Shri. Prakash Chandra Nalwaya , Non Official Director

General Managers

General Managers at the Head office (Position as on 01.08.2011)

1) Shri. K. Jayakar Shetty.2) Shri. J. Pandiyan.3) Shri.Narayan Shetty H.4) Shri. Raviraj Hegde K5) Smt. K. Chandra.6) Shri. Vasantha Shetty B7) Shri. C.R. Chandramouli ( Chief Vigilance Officer )8) Shri. N. Devadas.9) Shri. Jayanth T S

10) Shri. Harindranath Shetty11) Shri. Subhodaya Shetty



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General Manager at Regional Office

1. Sri. K. Shashidhar Rao : Regional Office, Mumbai.

2. Sri. Veera Brahmaji Rao K : Regional Office, Bangalore (North)

Inception

Company Facts Vijaya Bank

Registered Address41/2, M G RoadBangaloreKarnataka560001

Tel: 080-25584066 080-25584067Fax: 080-25598040Email: [email protected] Website: http://www.vijayabank.com Group: Public Sector

Registrars Link Intime India Pvt. Ltd. C-13, Pannalal Silk Mill Compound,LBS Marg,Bhandup (West)

Tel: 25960320

mailto:[email protected]

http://www.vijayabank.com/

http://vijayabank.com/vijaya/export/sites/vijaya-bank-internet/internet-en/resources/images/inception.jpg

http://www.vijayabank.com/

mailto:[email protected]



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Name Designation

H S Upendra Kamath Chairman and Managing directorL K Meena Nominee DirectorRanjan Shetty DirectorPrakash Chandra Nalwaya Non Official Part-time DirectorNishank Kumar Jain Shareholder DirectorBharati Rao Shareholder DirectorP Vaidyanathan Shareholder Director

Name Designation Shubhalakshmi Panse Executive Director

Suma Varma Nominee DirectorSuresh Kamath DirectorBharati Rao Shareholder DirectorP Vaidyanathan Shareholder DirectorNishank Kumar Jain Shareholder Director



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Company History - Vijaya BankYEAR EVENTS

1980 - The Bank came into existence on 15th April, as a consequence of The Government of India taking over the undertaking of VijayaBank Ltd. The Bank is engaged in transacts all types of bankingBusiness including foreign exchange and is a Government of IndiaUndertaking.

1984 - Capital worth Rs 10 lakhs subscribed by Government.

1985 - The Bank sponsored its first Regional Rural Bank under the nameAnd style Visweswaraya Grameena Bank in March. This Regional

Rural Bank would cater to the needs of the target group belongingto Mandya district of Karnataka State.- Capital worth Rs 772 lakhs subscribed by Government.

1986 - Capital worth Rs 1000 lakhs subscribed by Government.1989 - Rs 800 lakhs subscribed by Government.1991 - Rs 2500 lakhs subscribed by Government.1992 - Rs 2500 lakhs subscribed by Government.

- The bank has introduced automatic renewal facility up to four Times in respect of short term deposits accepted for periodsFrom forty six days to one year for the convenience of the customers.

- The novel scheme of `Vijaya Vichar Vihar' was introduced by The Bank in 1989 and is now flourishing in 25 centres asOn March.

1993 - Rs 5000 lakhs subscribed by Government.- 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 theBank, with the objective of awarding scholarships to suchof those children of serving permanent sub-staff employees.

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 definitePerformance commitments.

- The Bank introduced the new schemes viz. Vijaya Gift Bond SchemeAnd Vijaya Service Card for enlarging its services to its



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Business clientele.

1996 - The Bank opened its first subsidiary, VIBANK HOUSING FINANCE LTD To add impetus to housing finance.

- Vijaya Bank introduced three new loan schemes, namely, 'VijayaNivruthi', 'Vijaya Krishi Vikas' and 'Vijaya Mangala' to cater To the credit needs of pensioners, farmers and working womenRespectively.

- The Bank has also entered into tie-up arrangements with ICICIBanking Corporation Limited and Oman International Bank Ltd.

- The Bank introduced innovative banking service called 'Any BranchBanking.'

1997 - Vijaya Bank has introduced a novel way to improve customerService.

- The Bank has recently introduced a new `trade finance' scheme.

1998 - Vijaya bank has introduced a jewel scheme under which loansAre granted by the bank to fund the purchase of jewellery byKeeping the purchased item as collateral till the loan has beenRepaid.

1999 - Vijaya Bank has entered into a Rs 200-crore take-out financingAgreement with the Housing and Urban Development Corporation(Hudco)S for funding infrastructure projects.

2000 - Vijaya Bank has introduced a new scheme named V-Star savings bankAccount scheme.

- Vijaya Bank Chairman and Managing Director S Gopalakrishnan hasBeen elected as the president of Indian Banks' Association,

Bangalore.

2003 -Vijaya Bank signs a pact with LIC to offer Life insurance cover toAll its existing as well as its new deposit-holders.

2004 -Vijaya Bank ties up with NIC to offer free insurance policy-US-based Principal Group enters distributorship tie-ups with VijayaBank



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-Delhi based Punjab National Bank (PNB) and Bangalore-based VijayaBank enter into a four-way partnership with Principal Financial of

the US and Berger Paints to set up an insurance broking company-Bangalore-based Vijaya Bank has launched a new credit facility forFarmers who are caught up in the clutches of private money-lendersAnd help them to improve their financial status-Vijaya Bank ties up with New Holland Tractors-Vijaya Bank ties up with National Insurance

2005 -Vijaya Bank ties up with TAFE-Vijaya Bank sets up new branches

2008 - Vijaya Bank inked a memorandum of understanding with credit ratingAgency, 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 loanRatings to its corporate clients at a concessional fee.

-Vijaya Bank has informed that Shri. Ranjan Shetty has been nominatedas Officer Employee Director of the Bank with immediate effect, videLetter dated September 09, 2008 received from Government of India,Ministry of Finance, Department of Financial Services.

2009 - Vijaya bank has plans to issue 1,000 biometric smart cards toAccount-holders residing in villages by the end of this fiscal.

- Vijaya Bank forged an alliance with VE Commercial Vehicles, a leading

auto brand, to become a preferred financier for the latter'S commercial

vehicles.

Company Background - Vijaya Bank

Industry Name Finance - Banks - Public Sector

House Name Public Sector

Collaborative Country Name N.A.

Joint Sector Name N.A.



Organization study

26

Year Of Incorporation 1931

Year Of Commercial Production N.A.

Name Intime Spectrum Registry Ltd.

Address C-13, Pannalal Silk Mills Compound, LBS Marg,Bhandup (W), Mumbai - 400078, Maharashtra

Tel. No. : 25963838, 25946970

Key Dates

Year Ending Month MarAGM Date (Month) JulBook Closure Date (Month) Jun

Listing Information

Face Value Of Equity Shares 10Market Lot Of Equity Shares 1BSE Code 532401NSE Code VIJAYABANKBSE Group A

Whether The Company Forms A Part Of The Following Indices

-Sensex NoNifty NoBSE-100

No

BSE-200

Yes

S&P Yes



Organization study

27

CNX500

CNXMidcap Yes

CNXFMCG

No

ListedOn

The Stock Exchange, Mumbai, National Stock Exchange.

Board Meetings Summary

The last board meeting of Vijaya Bank was held on July 28, 2011 for Quarterly Results

Meeting Date Remark28-07-2011 Quarterly Results28-04-2011 Audited Results & Dividend22-02-2011 Allotment of Equity Shares24-01-2011 Quarterly Results22-10-2010 Quarterly Results22-07-2010 Quarterly Results30-04-2010 Audited Results, Dividend & Others23-01-2010 Quarterly Results29-10-2009 Quarterly Results25-07-2009 Quarterly Results28-04-2009 Audited Results, Dividend & Others23-01-2009 Quarterly Results23-10-2008 Quarterly Results26-07-2008 Quarterly Results26-04-2008 Audited Results & Dividend22-01-2008 Quarterly Results24-10-2007 Quarterly Results

30-07-2007 Quarterly Results30-04-2007 Audited Results & Final Dividend27-01-2007 Quarterly Results18-10-2006 Interim Dividend22-07-2006 Quarterly Results05-05-2006 Accounts & Dividend21-01-2006 Quarterly Results24-10-2005 Quarterly Results



Organization study

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20-04-2005 Dividend & Accounts24-02-2005 Interim Dividend

27-01-2005 Quarterly Results24-10-2004 Half Yearly Results26-07-2004 Quarterly Results22-04-2004 Dividend & Accounts22-01-2004 Quarterly Results27-11-2003 Interim Dividend & Others23-10-2003 Half Yearly Results12-09-2003 Others23-07-2003 Quarterly Results30-04-2003 Dividend & Accounts28-01-2003 Quarterly Results

23-10-2002 Quarterly Results02-08-2002 Dividend13-07-2002 Quarterly Results

AGM/EGM Summary

The last AGM of Vijaya Bank was held on July 29, 2011. The bookclosure was from June 21, 2011 to June 25, 2011.

AnnouncementDate

Purpose Date Book Closure Remarks From To

31-05-2011 AGM 29-07-2011

21-06-2011

25-06-2011

Rs.2.50 pershare(25%)Dividend

22-02-2011 EGM 22-03-2011

- - To issue and allot3,91,48,936 EquityShares of the Bankof Rs. 10/- each for

cash at a premiumof Rs. 84 per EquityShare, i.e. issueprice of Rs. 94aggregating to Rs.368 Crs by way ofpreferential issue tothe Promoters of the



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29

Bank.31-05-2010 AGM 09-07-

2010

06-07-

2010

09-07-

2010

Rs.2.50 per

share(25%)Dividend29-05-2009 AGM 10-07-2009

06-07-2009

10-07-2009

10% Dividend

26-05-2008 AGM 25-07-2008

16-06-2008

21-06-2008

20% Dividend

04-05-2007 AGM 27-06-2007

20-06-2007

27-06-2007

10% Dividend

24-04-2006 AGM 28-06-2006

15-05-2006

20-05-2006

10% Final Dividend

27-06-2005 EGM 22-08-2005

- - To elect 4 Directorsamong the

shareholders of theBank other than theCentralGovernment. (EGMcancelled)

11-05-2005 AGM 22-06-2005

17-06-2005

22-06-2005

-

06-05-2004 AGM 16-06-2004

15-06-2004

16-06-2004

15% Final Dividend

22-04-2003 AGM 19-06-2003

22-05-2003

12-06-2003

Dividend 12%

25-05-2002 AGM 03-08-2002

05-07-2002

03-08-2002

Dividend

31-05-2001 AGM 14-07-2001

06-07-2001

14-07-2001

Bookclosure

Dividend Summary

For the year ending March 2011, Vijaya Bank has declared anequity dividend of 25.00% amounting to Rs 2.5 per share. At thecurrent share price of Rs 61.00 this results in a dividend yieldof 4.1%.

The company has a good dividend track report and hasconsistently declared dividends for the last 5 years. Announcement Effective Dividend Dividend Remarks



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Date Date Type (%)

28-04-11 17-06-11 Final 25.00

Rs.2.50 per

share(25%)Dividend

30-04-10 02-07-10 Final 25.00-

28-04-09 02-07-09 Final 10.00-

28-04-08 12-06-08 Final 20.00-

30-04-07 18-06-07 Final 10.00 AGM

18-10-06 06-11-06 Interim 10.00-

24-04-06 11-05-06 Final 10.00 AGM

As per the Profit & Loss account

INTEREST RATES

Domestic Term Deposits / Additional interest benefit for SeniorCitizensNRE AccountsFCNR(B)RFC - SB DEPOSIT Capital Gains Accounts Scheme 1988

http://vijayabank.com/vijaya/vijaya/internet-en/menus/interest-rates/interest-rates.html#domestic


http://vijayabank.com/vijaya/vijaya/internet-en/menus/interest-rates/interest-rates.html#nre

http://vijayabank.com/vijaya/vijaya/internet-en/menus/interest-rates/interest-rates.html#fcnr

http://vijayabank.com/vijaya/vijaya/internet-en/menus/interest-rates/interest-rates.html#rfc

http://vijayabank.com/vijaya/vijaya/internet-en/menus/interest-rates/interest-rates.html#capital


http://vijayabank.com/vijaya/vijaya/internet-en/menus/interest-rates/interest-rates.html#rfc

http://vijayabank.com/vijaya/vijaya/internet-en/menus/interest-rates/interest-rates.html#fcnr

http://vijayabank.com/vijaya/vijaya/internet-en/menus/interest-rates/interest-rates.html#nre





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Savings Bank 4.00 % p.a

Domestic Term Deposits

Interest rates on domestic term deposits have been revised with effect from 7th

JUNE, 2011 as under (%p.a.)

Sl No

Maturity Periods Less than ` FIVE crores

` FIVE Crores and Above

1. 7 days to 14 days 4.00 4.00

2. 15 days to 29 days 4.00 4.00

3. 30 days to 45 days 4.00 4.00

4. 46 days to 90 days 5.75 6.00

5. 91 days to 179 days 7.00 7.00

6. 180 days to less than one year 8.00 8.50

7. one year to less than Two

years 9.25 9.00

8. Two years to less than ThreeYears

9.35 9.00

9. Three years to less than FiveYears

9.00 8.50

10. Five Years and above 8.75 8.25

NRE AccountsRepatriable Savings Bank and Term Deposit Rupee accounts carrying interest rates.

NRE Savings Bank - 4.00 % p.a.

Interest Rates on Non Resident External Rupee Deposit (Term Deposits)

Effective from 01 AUGUST 2011

Maturity Period Interest Rate [% p.a.]

1 year to less than 2 years 2.51



































































































































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2 years to less than 3 years 2.393 years and above upto and including 5 years 2.69

:The above changes in interest rates will also apply to NRE deposits renewed after their present maturity

period

FCNR

Rate of Interest at percent per annum

Term Deposit Percent Per Annum (% p.a.) - w.e.f. 01 AUGUST

2011

GBP USD EURO

One month and up to below 3 months Deposits are accepted for a minimum periodof one yearThree months and above but below Six months

Six months and above but below one year

One year and above but below two years 2.59 1.76 3.17

Two years and above but below three years 2.32 1.64 2.94Three years and above but below four years 2.57 1.94 3.11

Four years and above but below five years 2.86 2.32 3.31

Five years only 3.14 2.72 3.51

Interest on FCNR (B) deposits for periods above one year are compounded on half yearly basis at

360 days a year.

The interest rates quoted are maximum permissible and hence deposits of retired staff members

cannot be extended additional interest over the rates quoted.

RFC Deposits

Rate of Interest at percent per annum

Term DepositPercent Per Annum (% p.a.) - w.e.f. 01 AUGUST 2011
















































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GBP USD EURO

One month and up to below 3 months1.63 1.19 2.38

Three months and above but below Six months1.83 1.26 2.56

Six months and above but below one year2.12 1.43 2.80

One year and above but below two years2.59 1.76 3.17

Two years and above but below three years2.32 1.64 2.94

Three years Only2.57 1.94 3.11

Four years and above but below five years RFC Term Deposits are accepted only for maximum

period of three years and at simple rate of interestFive years only

RFC - SB DEPOSITSRFC Savings Bank Deposits: Interest with effect from 01 AUGUST 2011 is as under

CURRENCY INTEREST RATEGBP 1.63 %

USD 1.19 %

EUR 2.38 %

Capital Gains Accounts Scheme 1988

Category of Account %P.A

Savings Bank Account 3.5 % p.a

Term Deposit Account As Mentioned in Domestic Term Deposit (given above)


































Organization study

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Interest rates

RATE OF INTEREST ON RETAIL LENDING SCHEMES

BASE RATE AT 10.65% P.A. W.E.F 01st

AUGUST 2011

Loans & Advances linked to Base Rate

Sl. % p.a.

1 V –

Cash For women beneficiaries including working women BR+5.00=15.65

For marriage & purchase of consumer durables BR+5.50=16.15

For others BR+5.50=16.15

For Pensioners BR+4.50=15.15

For V-Shikshak borrowers BR+5.00=15.65

2 V - Solar

- for Lighting BR+4.50=15.15

- for Heating 12.50% (Fixed)

3 V –IPO

V –IPO-If paid within 30 days BR+4.50=15.15

V --IPO If paid after 30 days BR+5.50=16.15

For finance to employees to subscribe shares of their own companiesunder ESOP/ IPO

BR+5.50=16.15

4 V – Professional

(Rural/Semi-urban) BR+4.50=15.15

Others BR+5.50=16.15

5 V – Trade BR+5.75=16.40

6 V-Wheels

(for individuals, corporate clients, partnership firms & V-Shikshak

borrowers (HOC10165) BR+ 0.85=11.50

7 V – Equip

For V – Shikshak borrowers BR+4.00=14.65


8 V –

Mortgage Loan BR+6.50=17.15 9 Educational Loan (Irrespective of amount)

for girl students (0.50% interest concession for all fresh loans

w.e.f 01.11.08 to 31.12.10) BR+2.25=12.90


10 Jewel Loans

For Agricultural activities As applicable to Agricultural

Loans


































































































































































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11 V-Rakshak BR+3.50=14.15

BASE RATE 10.65% p.a. W.E.F 01 ST AUGUST 2011

Sl. % pea

12 V-Reverse Mortgage

(with reset clause once in every 5 years)

11.00 [Fixed]

13 V Rent BR+4.25=14.90 14 Small Road Transport Operators (SRTO) As applicable under MSE (Service)

15 V Swashakthi

16 V SOD BR+4.00=14.65

ALL VIJAYA HOME LOANS LINKED TO BASE RATE

(inrespectofexistingloansandthosesanctionedfrom01 stAugust2011)

For loans up to Rs30.00 Lakh For Loans above Rs30.00 LakhFloating Fixed Floating Fixed

Upto 5 years BR+0.10=10.75

Seebelow

BR+0.85=11.50

Seebelow

Above 5-10years

BR+0.35=11.00

No fixed BR+1.10=11.75

No fixed

A ove 1 -15years

BR+0.60=11.25

No xe BR+1.35=12.00

No xe

Beyond 15-20yrs

BR+0.85=11.50

No fixed BR+1.60=12.25

No fixed

18 Home loans under Fixed rate ofinterest with tenor of up to 5 years

For loans upto Rs 30.00Lakh

ForLoansover Rs30.00Lakh

Existing Home loans sanctioned before06/5/2011

11.00 % 11.50 %

Home Loans sanctioned on or after06/5/2011

11.50% 12.00%






















































































































Organization study

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Home Loans sanctioned on or after01/7/2011

11.75%

Home Loans sanct one on or a ter

01/8/2011

11.75% 12.25%

PART-B

PRIORITY SECTOR ADVANCES

BASE RATE – 10.65% P.A. W.E.F 01st

AUGUST 2011

% p.a.

(1) AGRICULTURE

(a) Crop Loans

Upto Rs.3.00 lakhs (Under Interest subvention scheme)* 7.00 (Fixed )

Interest Rate for Crop loan up to Rs.3.00 lakhs disbursed from 014/2010 shall be charged

at 7% p.a.. (Fixed), in view of interest subvention scheme announced in the Union Budget

2011-12. Even if the Crop loan sanction is more than Rs.3.00 lakhs, interest at 7% p.a..

(Fixed) shall be charged for amounts up to Rs.3.00 lakhs and applicable interest Rate shall

be charged for the loan amount exceeding Rs.3.00 lakhs. If the loan remains unpaid after

the cut off date/period stipulated as per the Interest Subvention Scheme (Please refer

HOCL 10273 dated 24/9/2010), applicable interest as shown below should be charged.

Above Rs.3.00 lakhs BR+3.00=13.65

Upto Rs.50000/- BR+1.00=11.65

Above Rs.50000 up to Rs.2 lakh BR+2.00=12.65

Above Rs.2 lakh Upto Rs.3 lakh BR+3.00=13.65

(b) Other Short Term Loans and Term Loans

Upto Rs.50000/- BR+1.00=11.65Above Rs.50000 Upto Rs.2 lakh BR+2.00=12.65

Above Rs.2 lakh BR+3.00=13.65

(c) Loans granted through Societies BR+3.50=14.15

(Loans routed through PACS/LAMPS/FSS irrespective of repayment and size of the loan )

Note: Broader guidelines on charging and compounding of interest Rates on agricultural

advances have been furnished in Annexure-3 to this Circular.














































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2) For SGSY loans : (Term Loans- 5 years to 9 years)

Irrespective of activity financed and irrespective of Individual or Group.

to Rs. 50,000/- 8.75(Fixed)Above Rs. 50,000/- 9.00(Fixed)

3) For Vijaya General Credit Card (VGCC):

Vijaya General Purpose Credit Card

(HOC No. 71/2008 dated 13.05.2008)

9.25 (Fixed)

% p.a.

4) for Self Help Groups (SHGs):

Bank to SHGs/ JLGs BR+2.00=12.65

Bank to NGOs/VAs for on-lending to SHGs/ JLGs BR+3.50=14.15

5) DRI Advances 4.00 (Fixed)

PRIORITY SECTOR ADVANCES (Contd)

BASE RATE – 10.65% P.A. W.E.F 01ST

AUGUST 2011

6) Micro Medium and Small Enterprises(MSME)( A) Micro Manufacturing Enterprises

Sanctioned Limit

Loans Upto Rs.50000/- BR+ 0.85=11.50

Above Rs.50000 Upto Rs.2 lakh BR+ 1.35=12.00

Above Rs.2 lakh Upto Rs.25 lakh BR+ 2.60=13.25


Above Rs.50 lakh Upto Rs.1 crore BR+ 3.60=14.25

Above Rs.1 crore to Rs.10 crore BR+ 4.10=14.75

(B) Micro Service Enterprises :

ncludes SRTO/ V-Swashakthi/Professional/ Self-employed/ Small Business and otherservice enterprises)

Limit

Loans Upto Rs.50000/- BR+ 1.35=12.00




Above Rs.50 lakh BR+ 4.10=14.75






































































Organization study

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(C) Small Manufacturing Enterprises :

Sanctioned Amount

Loans Upto Rs.50000/- BR+ 1.60=12.25Above Rs.50000 Upto Rs.2 lakh BR+ 2.10=12.75



Above Rs.50 lakh Upto Rs.1 crore BR+ 4.35=15.00

Above Rs.1 crore to Rs.10 crore BR+ 4.85=15.50

Small Service Enterprises :

Loans Upto Rs.50000/- BR+ 2.10=12.75



Above Rs.25 lakh Upto Rs.50 lakh BR+ 4.35=15.00Above Rs.50 lakh Upto Rs.10 crore BR+ 4.85=15.50

7) For other categories of Priority sector

Other than (1) to (6) above and other than Housing & Education (both for working capital

inclusive of bills facility and term loans

For limits Upto & inclusive of Rs.2.00 lakhs BR+4.00=14.65

Above Rs.2.00 lakhs & inclusive of Rs.25 lakhs BR+5.00=15.65

Above Rs.25 lakhs BR+5.50=16.15















































Organization study

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PART-C

BASE RATE –

10.65% P.A. W.E.F 01

st

AUGUST 2011

NON PRIORITY SECTOR ADVANCES

WORKING CAPITAL LIMITS (INCLUDING BILLS PURCHASED/ DISCOUNTED AND TERM LOANS

Medium & Large Industries including Medium Enterprises [MEs]

% p.a.

Medium Manufacturing and Service Enterprises :

Limit

Loans Upto Rs.2 lakh BR+4.00=14.65

Above Rs..2 lakh Upto Rs.1 crore BR+5.00=15.65

Above Rs.1 crore and Upto Rs.10 crore BR+6.00=16.65

Above Rs.10 crore BR+7.00=17.65

All other Non-priority loans and advances including

Pronote Loans Upto and inclusive of Rs.2 lakh.

BR+7.00=17.65

(wherever Risk Rating is not

applicable)

Premises loans to Landlords of Branch premises, Pronote

loan/ Clean Loan, Non Priority Transport Operators,

above Rs.2.00 lakhs

As per Risk Rating

[wherever applicable]

For Commercial Real Estate Loans [other than V-Rent and

Home Loans]

As per Risk rating or

BR+6.50=17.15

whichever is higher

For term loans exceeding 5 years other than to

Agriculture/ MSE/ Retail Advances/ Staff loans.

0.25% to be added as ‘Term

Premium’

besides Risk Premium to the

interest computed based on risk

ratings.














































Organization study

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PART-D

Discounting of Inland Bills covered by Letter of credit (BDLC): (exclusively for Borrowers enjoying sanctioned Bill Discount Limit)

Tenor %P.A

With tenor Upto 90 days BR=10.65

Above 90 days to 180days

BR+0.50=11.15

Note : The Rates stipulated shall be for inland bills limit and not for foreign bills

which are guided by separate guidelines. The tenor of the Inland bills discounted shall be generally for maximum period

of 90 days. Based on the assessment, Regional Managers can approvemaximum tenor up to 180 day‘s period. The competent authority to approvebills of tenor exceeding 180 days shall be General Manager, Credit (C&I), HOand above as per extant delegated powers.

Bills drawn on/accepted by Co-operative Banks shall not be discounted.Similarly, branches shall not discount bills drawn against Letter of Creditissued by Co-operative Banks.

Bills Discount limit (L.C/ Non-L.C) is permitted only to borrowers within theassessed Working Capital limit. In case bills drawn under L/C of ScheduledCommercial Banks (other than Co-operative Banks), of non-borrowerconstituents of the Bank is permitted upon assessment (say in the case of

restricted L/C on our Bank), it shall be ensured that the proceeds are remitteddirectly to the beneficiary‘s bank account or the main/Lead Bank on the writtenrequest from the party.

Bills discounted shall be only in respect of Bills drawn for genuine tradetransaction with documents of title to goods evidencing dispatch of goodsrelating to the business activity of the borrower and accommodationbills/service agencies bills shall not be discounted/ purchased.









































Organization study

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PART-E

EXPORT CREDIT

BASE RATE – 10.65% P.A. W.E.F 01ST

AUGUST 2011

Sl

no

Tenor Revised ROI linked to

BR -10.65 % p.a.

1 PRESHIPMENT CREDIT – IN RUPEES

(a) Upto the due date (or the extended due date ) of the LC

/firm order with a maximum of 270 days from the date of

advance (see note no. 1 below)

BR+1.50=12.15

(b) Against incentives receivable from Government covered

by ECGC guarantee Upto 90 days

BR+1.50=12.15

2 POST SHIPMENT CREDIT – IN RUPEES

(a) On demand bills for transit period (as specified by FEDAI) BR+1.50=12.15

(b) Usance bills (for total period comprising usance period of export bills, transit period

as specified by FEDAI, and grace period, whichever applicable)

Upto 180 days BR+1.50=12.15

Upto 365 days for exporters under Gold Card Scheme BR+1.50=12.15

(C) Against incentives receivable from Govt. (covered by ECGC

Guarantee) Upto 90 days

BR+1.50=12.15

(d) Against undrawn balances (Upto 90 days) BR+1.50=12.15

(e) Against retention money (for supplies portion only)

payable within one year from the date of shipment (Upto

90 days)

BR+1.50=12.15

3 PRESHIPMENT CREDIT – IN FOREIGN CURRENCY

(a) Upto the due date (or the extended due date) of the LC

/firm order with a maximum of 180 days from the date of

advance.(see note no.2 below)

Not exceeding 200

basis points over LIBOR

/EURO LIBOR/

EURIBOR

(b) Beyond 180 days and Upto 360 days Rate for initial periodof 180 days prevailing

at the time of

extension plus 200

basis points i.e. 3(a)

above plus 200 basis

points.

4 POST – SHIPMENT CREDIT – IN FOREIGN CURRENCY






































































Organization study

42

(a) On demand bills for transit period, as specified by FEDAI.

(See note. No.2 below)

Not exceeding 200


/ EURO LIBOR/EURIBOR

(b) Against Usance bills (Credit for total period comprising

usance period of Export Bills, transit period as specified by

FEDAI, and grace period, wherever applicable)- Upto 6

months from the date of shipment (see note no. 2 below)

Not exceeding 200


/ EURO

LIBOR/EURIBOR

(c) Export bills (Demand of Usance) realized after due date,

but Upto date of crystallization

Rate as in 4 (b) above

plus 200 basis points

5 EXPORT CREDIT NOT OTHERWISE SPECIFIED (ECNOS)

(a) Pre-shipment credit (see note no.3 below) BR + 6.00=16.65

(b) Post-shipment credit (see note no.3 below) BR + 6.00=16.65

6 ALL TYPES OF EXPORT CREDIT LIQUIDATED FROM LOCAL SOURCES

(a) Pre-shipment credit BR+6+2=18.65

(b) Post-shipment credit BR+6+2=18.65

7 DEFERRED EXPORT CREDIT BR+5.50=16.15

NOTE:

1 For guidelines on extending due dates of pre and post-shipment export credit, please

refer to General Circular no. 10019 dated 15.05.2010 and 10049 dated 21.07.2010

respectively

2 For releasing PCFC/BPFC/BDFC, branches should obtain prior approval from the

competent authority as per the guidelines in General Circular no. 24/209 dated

20.06.2009

3 ECNOS rate should be applied in the case of:

Overdue PCL, beyond the original / extended due date Upto the date of closure or Upto

360 days from the date of advance, whichever is earlier.

Overdue PCL which are outstanding beyond 360 days, on the outstanding amount, from

the date of original advance Upto the date of closure.

Overdue FDBP/FUDBP/LAEBC, beyond the notional due date Upto the date of realisation.

Crystallised PCFC/BPFC/BDFC, from the date of crystallisation Upto the date of closure

from the export proceeds in the case of PCFC and Upto the date of realisation in the case

of bills.






















































Organization study

43

PART-F

BASE RATE –

10. 65% P.A. W.E.F 01

st

AUGUST 2011

TENOR % P.A.

ADVANCE AGAINST TERM DEPOSITS

INTEREST ON LOANS AGAINST DOMESTIC TERM DEPOSITS

FOR STAFF AND EX-STAFF MEMBERS

LTD/Overdraft (Secured) against own

domestic deposits with a minimum margin of

10%

1% above the Deposit Rate

FOR OTHER DEPOSITORS AND NON RESIDENT (ORDINARY) (NRO) DEPOSIT HOLDERSLTD/Overdraft (Secured) against own

domestic deposits with a minimum margin of

15%.

2% above

the Deposit Rate

Loan against own JND balances with a

minimum margin of 20%

BR+4.00=14.65

All advances against third party deposits with

a minimum margin of 15%.

Rate applicable relevant to the borrower

category with a minimum of BR+4 from time to

time.

INTEREST ON LOANS AGAINST NON RESIDENT TERM DEPOSITS

NON RESIDENT EXTERNAL DEPOSITS (NRE)dvances to depositors against their own

deposits with 10% margin.

1.50% above the interest Rate payable on

deposits.

Advances to residents against third party

deposits with 10% margin

Upto Rs.2 lakhs

2% above the interest Rate payable on the

deposit OR 2% above BR, whichever is higher.

Above Rs.2 lakhs :

Personal purpose :


deposit OR 3% over BR, whichever is higher.Above Rs.2 lakhs-Other than Personal

purpose :


deposit OR 4% over BR, whichever is higher.























































Organization study

44

FOREIGN CURRENCY NON RESIDENT [FCNR (B)] DEPOSITS :

Advances to depositors against their

owndeposits, with minimum margin of 15%

BR+2.00=12.65

Advances to residents against third party

deposits with minimum margin of 15%

Upto Rs.2 lakhs



Above Rs.2.00 lakhs

Personal purpose



Other than personal purpose2% above the interest Rate payable on the

deposit OR 4% above BR whichever is higher.

Branches/ ROs are advised not to grant fresh loans or renew existing loans in excess of Rs. 1.00

crore against NRE and FCNR (B) deposits, either to depositors or to third parties. It is further

directed that branches should not undertake artificial slicing of the loan amount to circumvent

the ceiling. [Refer HOC No. 25/09 dated 28th June 2009.]

Note :

With regard to margin on Loans and advances against various kinds of term deposits of our

Bank, Regional Heads have powers to approve reduction subject to maintenance of minimummargin of 10%. Concession if any, in interest Rate shall be approved only by the Chairman and

Managing Director or by Executive Director in the absence of CMD.

The branches should ensure the following:

Prompt recovery of interest debited to the loan account on monthly basis and;

(b) The required margin is maintained in the account at any point of time.


































Organization study

45

PART-G

BASE RATE –

10. 65% P.A. W.E.F 01ST

AUGUST 2011

% p.a.

For certain specified categories

(irrespective of the quantum of the loan and repayment period)

Loans on the security of IVPs/ KVPs/ NSCs/ Units/

Capital Investment Bonds/ SV of life insurance

policies.

BR+4.00=14.65

Adhoc sanctions (other than export credit

facilities)

1% above the Rate applicable

nterest on all advances of temporary nature such

as Current Account TODs and excess drawings in

the sanctioned limits/ DP, drawals against

instruments sent in clearing, etc. (irrespective of

the Rate of interest for regular limit).

BR+8.00=18.65

Overdrawing due to credit card transactions in

Savings/ Current/Overdraft/Cash Credit and otheroperative accounts

27.40

(C) In case of cardholders opting for revolving

credit:

On the revolving credit balance retained at

CCD HO

(ii) After transfer of liability to the Branch

21.40

27.40

) Overdue/ returned unpaid bills, invoked BGs,

defaults under DPG/Bills co-acceptance,

devolvement under Inland & Foreign Letters of Credit.

BR+8.00=18.65

PENAL INTEREST

or Priority Sector advances Upto Rs.25,000/- Nil

For Priority Sector Advances above Rs. 25,000/-

and all other Advances [including Export credit

not otherwise specified (ECNOS)], overdue/

2.00

















































Organization study

46

overdrawn loan accounts and excess over

sanctioned limits outstanding beyond the

stipulated time and for non-submission/ delayedsubmission of stock statements/ QIS statements/

renewal proposal/ diversion of funds/ non

adhering lending discipline etc. as per H.O Circular

No.67/2000 dated 21/3/2000.

aximum applicable Rate of interest including

penal interest (other than Credit card

overdrawings)

BR+10.00=20.65

Organization study

1. Indian economy

The global economy continues to recover amidst ongoing policy support andimproving financial market conditions. The recovery process is led by EmergingMarket Economies (EMEs), especially those in Asia, as growth remains weak inadvanced economies. The global economy continues to face several challenges,

such as, high levels of unemployment, which are close to 10% in the U.S. andthe Euro area. Despite signs of renewed activity in manufacturing andimprovement in retail sales, the prospects of economic recovery in Europe areclouded by fiscal strains in some countries.

Core Inflation levels in major advanced economies are still moderating as theoutput gap persists and unemployment remains high. Inflation expectationsalso remain well anchored. In contrast, core inflation in EMEs, especially inAsia, has been rising. This has prompted Central Banks in some EMEs to beginphasing out their accommodative monetary policies.

The Indian Economy performed well during 2009-10. The overall growth of GDP as per Advance Estimates of the Central Statistical Organization (CSO)was 7.2% in 2009-10representing an increase from 6.7% during 2008-09. Thefinal real GDP growth for 2009-10,as perceived by RBI, may settle between 7.2-7.5%. The share of Agriculture, Industry and Services Sector in GDP isestimated at 14.6%, 28.2% and 57.2% respectively in 2009-10.







































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47

During 2009-10 (April '09 -Jan.'10), Exports stood at US $131.8 billion, postinga decline of 17.9% as against the growth of 22.8% during the corresponding

period last year. Imports during the similar period also recorded a decline of 19.8% as against growth of32% a year ago. India's Foreign Exchange Reservesstood at U.S. $ 279 billion at the end of March 2010. As regards recent GreekDebt Crisis, it could trigger short-term vulnerability, in terms of capital inflowsin the Indian markets, though its long-term impact might not be severe. On theinflation front, Y-o-Y inflation in terms of Wholesale Price Index (WPI) was 9.9%as at March 2010, exceeding the RBI's baseline projection of8.5% for March2010. Inflation as measured by Consumer Price Index (CPI) stood much higherat 16.2% (Y-o-Y) in January 2010.

2. Banking Scenario

Growth in monetary and credit aggregates during 2009-10 remained broadly inline with the RBI's projections. Aggregate Deposits of Scheduled CommercialBanks (SCBs) recorded a Y-o-Y growth of 17% during the year, while Advancesrecorded a Y-o-Y growth of 16.7%compared to 18.2% last year. ScheduledCommercial Banks (SCBs) raised their deposit rates by 25-50 basis pointsbetween February and April 2010, signaling a reversal of the trend in depositrates. On the lending side, the Benchmark Prime Lending rates (BPLRs) of SCBs have remained unchanged since July 2009, following reductions in therange of 25-100 basis points between March and June 2009.For most part of 2009-10, the main focus of the RBI was on gradual withdrawal

of accommodative monetary policy stance, which it had adopted earlier, inresponse to the global economic crisis of 2008. This was necessitated by theneed to rein in the burgeoning fiscal deficit.In continuation of the calibrated exit strategy, which it had pursed in theearlier year, the RBI, in its Monetary Policy Statement for 2010-11 has furtherraised the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basispoints from 5 per cent to5.25 per cent and the reverse repo rate under the LAFby 25 basis points from 3.5 per cento 3.75 per cent with effect from April 20,2010. Further, the CRR has been increased by25 basis points from 5.75 percent to 6 per cent. These measures are expected to anchor inflationaryexpectations and contain inflation going forward. As liquidity in the banking

system is likely to remain comfortable, credit expansion for sustaining therecovery may not be affected.

3. Outlook

In its World Economic Outlook Update for January 2010, the IMF projectedthat global growth will recover from -0.8% in 2009 to 3.9% in 2010 and furtherto 4.3% in 2011. Three major factors that are likely to contribute to the global














































Organization study

48

outlook are the massive monetary and fiscal support, improvement inconfidence and a strong recovery in EMEs.

On the domestic front, the Indian Economy is firmly on the recovery path.Exports have been expanding since October 2009, a trend that is expected tocontinue. The industrial recovery is increasingly becoming broad based. Asustained increase in bank credit and in the financial resources raised by thecommercial sector from non-bank sources also suggest that the recovery isgaining momentum.On balance, under the assumption of a normal monsoon and sustenance of good performance of the industrial and services sectors on the back of risingdomestic and external demand, the baseline projection of real GDP growth for2010-11 is placed at 8 per cent with an upward bias. On the Inflation front,keeping in view the domestic demand-supply balance and the global trend in

commodity prices, projection for WPI Inflation is placed at 5.5%for March 2011. The need for sustainable developmental efforts by financial institutions inIndia has assumed urgency and banks, in particular, can help contribute tothis effort. RBI in its notification dated 20th November 2007 has advised banksto take note of the issues raised and consider addressing the same by puttingin place an appropriate plan of action towards helping the cause of sustainabledevelopment.

VIJAYA BANK'S PERFORMANCE IN 2009-10

4. Working Results

Operating profit posted by the Bank for the year 200910 was Rs. 1056.96Crore as compared to Rs.898.91 Crore in 2008-09, while the Net profit for the year 2009-10 amounted to Rs. 507.29 Crore as compared to Rs. 262.48 Crorein 2008-09, recording a growth rate of93.27%. On the deposit front, averagecost of deposits decreased from 7.56% in 2008-09 to6.21% in 200910 mainlydue to decrease in market interest rates and Bank's reduced recourse to high-cost bulk deposits. However, the yield on advances recorded a decrease from11.09% in 2008-09 to 10.26% in 2009-10, which was in keeping with theindustry trend.

The trends in Bank's financial results and important ratios are highlighted inthe tables below:






































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TABLE-1 Income-Expenditure Parameters

SI.No.

Item 2008-09

2009-10

Annual increase(%)

1. Interest Incomes 5238 5201 -0.712. Interest Expenditure 4113 3752 -8.793. Net Interest Income (1-2) 1125 1449 28.834. Non-interest income 699 680 -2.77i. Profit on sale of investments 304 283 -6.84

ii. Other non-interest income 395 397 0.515. Net Total Income (3+4) 1824 2129 16.726. Operating expense 925 1072 15.88i. Staff Expenses 598 706 18.10ii. Other operating expenses 327 366 11.837. Operating profit (5-6) 899 1057 17.588. Operating profit (excl. Treasury

profit)595 774 30.08

9. Provisions and Contingencies 636 550 -13.6310. Net profit 262 507 93.27

TABLE-2 Profitability/Efficiency Ratios

SI. No.

Parameters (%) 2008-09

2009-10

1. Yield on funds 8.88 7.892. Cost of funds 6.97 5.693. Interest spread (1-2) 1.91 2.204. Yield on advances 11.09 10.26

5. Cost of deposits 7.56 6.216 Net Interest Margin 2.04 2547. Yield on investments

- excluding Trading Profit 7 72 6.67- including Trading Profit 9 38 7.05

8. Other operating expenses to Averageworking funds

0.55 0.56
















































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9. Cost-Income Ratio 50.71 50.3410. Establishment cost to average working

funds

1.01 1.07

11. Return on Assets 0.59 0.7612. Return on Equity 11.10 21.4113. Capital Adequacy Ratio - Basel I 13.08 11.79

- Basel II 13.15 12.5014. Gross Non-Performing Assets 1.95 2.3715. Net Non-Performing Assets 0.82 1 40

5. Dividend

Taking into consideration the overall profitability position, the Board of Directors have recommended a dividend of Rs.2.50 per Equity Share of the facevalue of Rs. 10/-for the year 2009-10, amounting to Rs. 108.38 Crore.

6. Capital Adequacy

Bank's capital adequacy ratio (Basel II) stood at 12.50% as on 31.03.2010 vies-

a-vies the Reserve Bank of India norm of 9%. The Tier I Capital Adequacy Ratiowas 7.69% and Tier II ratio 4.81%.

7. Branch Network

Fifty seven additional branches were opened during the year taking the totalnetwork of branches from 1101 in March 2009 to 1158 in March 2010 with anall-India footprint. Three Extension Counters were opened during 2009-10,taking the tally of Extension Counters to46.

8. Deposit Mobilization

Total deposits of the Bank increased from Rs. 54535.43 Crore as on 31.3.2009toRs.61931.74 Crore as on 31.3.2010, recording an annual growth rate of 13.56 %. CASA deposits recorded a 16.35% growth, accounting for 24.6% inthe aggregate deposits. CASA deposit growth was driven by 20% growth in SBdeposits, which crossed the Rs. 10000 Croremark during the year.



































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During the year, Bank launched new product ‗V-GenU™ Unnati ‗RD Account‘ for the Generation Next clients. The product received overwhelming response

within a short span of about two months as 26139 accounts were opened withbalance of Rs.1.64 Crore. A Deposit Campaign, covering Savings Account of different segments like the households, salaried class and other nichesegments was also launched by virtue of which nearly 5 lakh accounts wereopened mobilizing in all Rs. 640 40 Crore Apart from the Deposit campaigns,various activities were undertaken to nurture the new generation V-GenU TH SBAccountholders and HNI segment of SB accounts. All these led the SB depositportfolio to post growth that was one of the highest.

9. Credit Expansion

Gross advances of the Bank increased from Rs. 35874 63 Crore in March 2009toRs.41934.53 Crore in March 2010, recording an annual growth rate of 16.89%. The average gross credit recorded an annual growth rate of 8.35%from Rs. 34540.16 Crore in 2008-09 toRs.37424.90 Crore in 2009-10,reflecting low credit absorption trend for most part of the year under review.

Infrastructure Finance

Advances to Infrastructure sector increased from Rs. 7722 Crore in March2009 toRs.10445 Crore in March 2010, registering a growth rate of 35.26%.Power sectors, Roads, Ports, Airports, Industrial Parks, SEZ, Pipelines for Gas/

Petroleum products transportation, Telecommunication sector etc., were themajor areas under infrastructure financed by the Bank.

Retail Credit

The Bank continued to accord priority to its Retail Lending Schemes viz.,Housing Loan, Education Loan, Jewel Loans etc. However, Retail Creditsegment witnessed sluggish growth during the financial year 2009-10 in tunewith the growth/trend prevailing in the industry on account of recessionarytrends for most part of the year. The Bank disbursed Rs. 2857.98 Crore under Retail credit during the year &

the amount outstanding as at March 2010 stood at Rs. 9348.90 Crore. RetailCredit Portfolio accounted for at 22.26% of the Bank's Gross Credit. The Bank disbursed Rs. 614.40 Crore under Housing loan, Rs. 144.44 Croreunder Education loan and Rs. 359.46 Crore under Vehicle loansand Rs. 718.91 Crore under Jewel loan schemes during the year. The amountoutstanding under Housing loan, Education loan, Motor Vehicles loans & JewelLoan schemes, as on 31st March 2010, was Rs. 4525.60Crore, Rs. 534.47Crore, Rs. 791.98 Crore and Rs. 571 Crore respectively. The


















































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52

Y-o-Y growth in Jewel loan segment was 65.90% and that under Educationloan segment was 24%.

The Bank also introduced, during the year, a new Retail product called V-GoldCash Credit in order to cater to the needs of small businessmen, Retail tradersand professionals, particularly in semi-urban and urban areas.During the year, the Bank entered into tie-up arrangements with auto majorslike AshokLeyland, Mahindra & Mahindra, V.E. Commercial Vehicles Ltd.,(Eicher Motors) &TATA Motors Ltd, to step up the portfolio under vehicle loans.

Priority Sector Lending

Total Priority Sector advances of the Bank increased to Rs. 14553 Crore as at

the end of March 2010 as against Rs. 13450 Crore as at March 2009,registering a growth rate of 8.20% (Y-o-Y). Priority Sector Credit of the Bankconstituted 40.57% of the Adjusted Net Bank Credit, as against the 40%stipulation.

Agricultural Finance

Direct Agricultural advances of the Bank as at March 2010 stood at Rs. 3608Crore, as against Rs.3053 Crore as at March 2009, registering a growth rate of 18.18% over March2009. Total Agricultural advances (with 4.50% cap on

Indirect Finance for agriculture)stood at Rs. 5222 Crore, which formed 14.56%of the Adjusted Net Bank Credit, as against the norm of 18%.Under Special Agricultural Credit Plan, the Bank disbursed Rs. 4103 Croreduring the year 2009-10, as against the target of Rs. 4713 Crore, which worksout to an achievement ratio of 87.06%.

Kisan Credit Card scheme

During the year under review, the Bank issued 42348 Kisan Cards anddisbursed Rs. 336.27Crore under the Scheme. The Bank also launched ATMenabled Kisan Credit Cards at some select branches for the benefit of farmers.

Coverage of new farmers

During the year, the Bank financed 39728 new farmers anddisbursed Rs. 430.47 Crore under various agricultural activities. The averagenumber of new farmers financed comes to78 as against the Govt, of India'stipulation of a minimum of 100 new farmers per rural and semi urbanbranch.








































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Financing Micro Small and Medium Enterprises (MSME):

Advances to Micro Small and Medium Enterprises increased to Rs. 5436 croreas at March2010 from Rs. 4552 Crore as at March 2009, signifying a Y-o-Ygrowth of 19.42%. As per the directives of Government of India, advancesunder the Micro, Small and Medium Enterprises(MSME) are to be doubled overa period of five years ended 2009-10. The Bank achieved this in March 2008itself.

Advances to Weaker Sections:

As at March 2010, outstanding advances to weaker sections stood at Rs. 3462

Crore, which constitutes 9.65% of the ANBC as against the stipulated norm of 10%.

Credit to Women beneficiaries

Advances to Women beneficiaries stood at Rs. 2342 Crore as at March 2010 asagainstRs.2052 Crore as at March 2009, registering a growth rate of 14.13%.Against the stipulated benchmark level of 5% of net bank credit to women, theBank's achievement stood at 6.52%.

Advances to SC / ST beneficiaries

Bank's total advances to SC / ST clients stood at Rs. 705 Crore as at March2010,against Rs. 441 Crore as at March 2009, showing a 59.86% growthduring the year.

Credit to Minority Communities:Advances to Minority Communities stood at Rs. 1566 Crore as at March 2010,constituting10.75% of total priority sector advances.

Lending under Govt. Sponsored Schemes: Bank continued to accord emphasis on implementation of Government

sponsored schemes. As at March 2010, total out standings under suchschemes amounted to Rs. 243.74 Crore, involving 26141 beneficiaries.Self Help Groups (SHGs)During the year 2009-10, the Bank financed 44243 SHGs anddisbursed Rs. 244 Crore. Cumulatively, the Bank so far financed 118257 SHGsand disbursed Rs. 646 Crore. In recognition of its stellar performance in thisvital area, the Bank was conferred Best Performance Award for SHG-BankLinkage in the State of Karnataka, for 2008-09.










































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Janashree Bima Yojana

It is one of the Schemes of LIC of India, wherein women members of SHGs aregetting life cover and also insurance against permanent disability. Besides,their children studying in 9th to 12th Standard are also provided withscholarship. Bank implemented the scheme for the benefit of women membersof various SHGs. It has so far covered 1735members and disbursedscholarship of Rs.1.36 lakhs to eligible students.

Visveshvaraya Grameena Bank: Visveshvaraya Grameena Bank (VGB), a Regional Rural Bank (RRB) sponsoredby the Bank continued to make good progress during 2009-10. VGB with atotal network of 30 branches in Mandya District of Karnataka State, had total

deposits and advances of Rs. 191.35 Crore andRs.133.41 Crore respectivelyas at March 2010. The performance and working results of the VGB have beenquite encouraging. VGB posted a net profit of Rs. 335.48 lakhs on March 31,2010.

Agricultural Debt Waiver and Debt Relief Scheme - 2008 The Bank actively participated in the Agriculture Debt Waiver and Debt Relief scheme of Government of India. Under the scheme, the Bank extended loanwaiver benefit to 47807small and marginal farmers amounting to Rs. 147.12Crore and identified relief benefit to21664 other farmers amountingto Rs. 60.41 Crore.

Financial Inclusion As at March 2010, Bank had 2.72 lakhs No-frill accounts, with balanceof Rs. 29.99Crore. After successful implementation of the first phase of Financial Inclusion in dallits three districts in Karnataka, Bank has takenforward the initiative to provide banking services at the door steps of its clientsthrough Business Correspondent Model with Smartcard/ Hand Held Machine.Under Branchless banking, Bank has covered 14 villages in Karnataka Statethrough 5 business correspondents/sub-Agents and issued 2300 smart cardsas on March 2010.Loan Restructuring

Keeping in view the prevailing trends in Industry and other sectors, the Bankrestructured eligible advances of needy borrowers, thus giving respite to thesesectors affected by economic recession. During the year, the Bank restructured7108 loan accounts involving an amount of Rs.1563 Crore, taking thecumulative number of accounts restructured and amount to 16760and Rs.2573 Crore respectively.

10. Asset Quality





















































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The Bank continued its focus on maintaining quality assets along with thrust

on preventing fresh slippages. It initiated and continued to emphasize variousmeasures in this direction, including the following:• Accounts showing signs of stress / likely default in dues are identified andtreated as Special Watch accounts and are closely monitored. Whereverfeasible, such assets are restructured, with additional need-based credit limitsconsidered in deserving cases, to prevent fresh slippages.• In case of willful defaulters, stringent recovery measures, including legaloptions like Securitization, Lok Adalats / DRTs, etc., are promptly resorted to.• To facilitate speedy recovery, 'Vijaya Adalats ' are regularly conducted to settledues of defaulters amicably. During the year, Bank could recover Rs. 35.66Crore under 5594 accounts by way of such settlements.

The gross Non-Performing Assets of the Bank as on March 2010 worked out to2.37 percent, while net NPA ratio was 1.40 per cent. During the year 2009-10,Bank could affect total cash recovery of Rs. 424.82 Crore (including interest)and upgraded NPAs amounting to Rs. 163.10 Crore. Further, the Bank alsomade provision of Rs. 194.59 Crore for the unexpected defaults, apart fromhaving a floating provision of Rs. 213 Crore as on March31, 2010. TheProvision Coverage Ratio (including PWO) as at March 2010 worked outto64.24%

11. Investment and Fund Management

Total investment portfolio of the Bank increased from Rs. 17388 Crore as onMarch 31,2009 to Rs.21107 Crore as on March 31, 2010. The average yield oninvestments (excluding profit on sale of investments) during the year workedout to 6.67% as against 7.72% in2008-09. The liquidity position in the Bankwas generally comfortable throughout the year under review. The Bank alsocomplied with CRR/SLR requirements as stipulated by Reserve Bank of Indiaconsistently during the year. The Bank has successfully implemented the ITMS (Integrated TreasuryManagement Software) during the financial year and the same is interfacedwith CBS platform.

Implementation of RTGS & NEFT

The Bank joined the Real Time Gross Settlement (RTGS) system on June 14,2004 and has-been undertaking customer transactions with effect from January 12, 2005. As on March 31,2010, all Branches/ Extension counters/Service Branches and Regional Offices of the Bank were RTGS enabled. TheBank joined the National Electronic Funds Transfer (NEFT) scheme with effect














































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from December 7, 2006. NEFT facility has been extended to cover all our RTGSenabled branches /Offices.

12. Risk Management

Risk management function in the Bank is overseen by several committees,including Board level Committee, namely, Risk Management Committee of theBoard (RMCB). The risk management policies are implemented through CreditRisk Management Committee (CRMC),Operational Risk ManagementCommittee (ORMC) and Asset Liability Management Committee(ALCO) at thecorporate level, headed by the Chairman and Managing Director.Apart from the primary risk policies, Bank has put in place several importantrisk related policies, such as, Internal Capital Adequacy Assessment Process

(ICAAP), Business Continuity and Disaster Recovery Plan, Disclosure, Stress Testing, Collateral Management, Adoption of External Rating, Managing Riskson Outsourcing of Financial Services, IT security, Country Risk Managementpolicies, etc. These risk management policies are being reviewed and revisedperiodically. The Bank has carried out self assessment of its Risk Profile, based on the RBIprescribed Risk Profile Templates, on quarterly basis, vetted by a QualityAssurance Team, before submission to RBI and the Board.

Credit Risk

Lending Policy of the Bank is being revised from time to time, to include,among others, such aspects as risk appetite, risk based pricing, riskdiversification/mitigation strategy, prudential limits, exposure ceiling, preferredsector growth strategies, credit approval process, documentation and securitystandards, security valuation, etc.In order to enhance the effectiveness of Loan Review Mechanism, the Bankintroduced Onsite Credit Audit for exposures of Rs. 5 crore and above and alsomodified its Loan Review Mechanism for exposures below Rs. 5 crore. TheBank has also complied with the RB requirement of at least 30 to 40% of thecredit exposures that are to be covered under the Loan Review Mechanism /

Credit Audit. Stress Test on Credit Risk is also carried out on annual basis, interms of the Stress Test policy of the Bank. The Bank has put in place a comprehensive risk rating / scoring system thatserves as a single point indicator of diverse risk factors on the counterpartyand for taking credit decision in a prudent manner. A separate risk scoringmodel for Housing and other Retail sectors has also been evolved so as toensure higher coverage under risk rating exercise, presently around 90%.Migration analysis is also carried out on quarterly basis in respect of exposures











































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of Rs. 1 Crore and above. From Sept 09, the Bank has introduced Credit riskrating software, which is Basel II compliant for conducting risk rating of all

retail and non-retail loans. This software enables the Bank to ensure that alltypes of exposures are covered under risk rating before sanctioning of any loanso as to maintain the credit quality and also to move towards compliance withthe advanced approaches under Basel II.

ALM and Market Risk

Asset Liability Management Committee (ALCO) in the Bank has devisedappropriate tolerance limits for mismatches in different time buckets, formanaging liquidity and interest rate risks. These limits are being monitored atfortnightly intervals and are also being placed before the Board.

Market risk assessment is done by tools like VaR (Value at Risk), AGL (Aggregate Gap Limit) and Duration Gap Analysis. Single country limits andgroup limits for all countries have also been put in place to manage andmonitor the country risk. Mid-office reports on treasury operations are alsoplaced before ALCO on a monthly basis, covering information about exceptions,reviews and compliance.Interest rate risk on entire credit portfolio is identified and measured throughtools like Earnings at Risk (EaR). Besides, Portfolio Sensitivity analysis isconducted and reviewed by the top management. Further, ContingencyFunding Plans, Prudential Ratios /Limits have been set and actual position ismonitored as part of Liquidity Risk Management. Stress Test on Interest Rate

Risk, Liquidity Risk, Forex, etc on different scenarios are also carried out onquarterly basis and appraised to ALCO. To monitor short-term liquidity, ALMstatements and Mid Office reports on daily basis are also generated.

Operational Risk

With a view to mitigating various Operational Risks, several studies wereconducted during the year. These include studies on functioning of the datacentre, Retail Assets Centralized Processing Cells, RTGS/NEFT etc. The Bankhas started implementing the qualifying criteria for the Standardized Approachby putting critical business processes under RCSA (Risk & Control Self

Assessment) exercise. Two RCSA workshops at Head Office level and 8 RCSAworkshops at Regional Office level were conducted during the year whereinassessment of risks and the corresponding control measures were evaluated inrespect of 7 operational areas. The Bank has constituted a Business ContinuityManagement Committee (BCMC) at the apex level and various EmergencyResponse Teams at HO/RO/ Branches to oversee implementation andmanagement of the business continuity and related activities. During the year,the Bank also reviewed its Business Continuity & Disaster Recovery Plan.












































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Basel-ll Compliance

In order to comply with the Basel II norms, the Bank has been carrying outparallel run exercise on the capital adequacy calculation in the RBI prescribedformat, on a quarterly basis and apprising the Board, apart from submittingthe same to RBI.Besides, the Bank has entered into MOU with four rating agencies viz. CRISIL,ICRA,CARE and Fitch, for risk rating of its corporate clients.In compliance with the RBI guidelines on Standardised Approach for CreditRisk, Standardised Duration Approach for Market Risk and Basic IndicatorApproach for Operational Risk, Bank has complied with Basel II norms and theoverall Capital Adequacy Ratio as at 31st March 2010 worked out to 12.5 %, as

against the minimum stipulated norm of 9%.

Integrated Risk Management System (IRMS) Project.

In order to facilitate smooth and effective transition to the Basel-ll framework,the Bank has taken up implementation of an Integrated Risk ManagementSystem (IRMS). The IRMS Project consists of six solutions, viz., Credit Risk Management(CRM), Market Risk Management (MRM), Operational Risk Management (ORM),Credit Risk Rating Solution(CRR) (Retail & Non-Retail), Asset LiabilityManagement (ALM) and Funds Transfer Pricing (FTP) Solution. During the

year, the Bank implemented Phase I of this project i.e. achieving theStandardized Approaches and is steadily moving forward towards implementingthe Advanced Approaches.

13. International Banking

As at March 2010, foreign business turnover of the Bank stood at Rs. 12530Crore, comprising Rs.5479 Crore under export, Rs. 2360 Crore under importsand Rs. 4691 Crore under remittance business. The Bank is participating in the Rupee Drawing Arrangement with sixExchange Houses and three non-resident banks from Middle East. Besides, it

has drawing arrangement and the Cheque collection facility with correspondentBanks abroad to serve clients."Vijaya Bank Speed Remittance" facility facilitates online credit of remittancesfrom Gulf Countries through Exchange houses directly to the customer'saccount with the Bank's branches. Presently, this facility is extended to UAEExchange Centre LLC.Abu Dhabi, UAE. Similar arrangements are planned tobe forged with other Exchange Houses also.











































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With a view to improving the NRI deposits, the bank has deputed its officials toUAE for canvassing NRI accounts of expatriate Indians.

14. Merchant Banking & Allied Activities

Vijaya Bank is a SEBI registered category I Merchant Banker, Bankers to Issue,Debenture Trustee and Depository Participant. The Bank is also registered as'Self Certified Syndicate Bank' (SCSB) for accepting IPO/Rights issueapplications under Applications Supported by Blocked Amount (ASBA) scheme. The Bank undertakes Payment Bankers Assignments for payment of Interest/Dividend/Refund orders of Corporate.Bank also offers Depository Services to its clients. Towards providing valueadded service to the investor community, the Bank proposes to launch an

Online Trading portal, now in advanced stage of implementation.

Government Business

Amongst various Government businesses, Bank is collecting Direct Tax at its288designated branches and also Indirect Tax at 37 branches. E-Paymentfacility for the payment of taxes is available to customers through all branches.Besides, PPF accounts cane opened in 153 designated branches and State andCentral pension payments are disbursed through all the branches of the Bank.

15. Card Business

Under Credit card operations of the Bank, the cumulative card base as of March 2010 was1.48 lakh, with a turnover of Rs. 445 Crore. There is 1098Merchant Establishment enrolled with the Bank.Under Debit cards, the bank continued to make good progress during 2009-10.As at March2010, Debit card base of the bank stood at 11.35 lakh compared to7.05 lakh as at the end of last financial year.Bank offers a special Savings Bank deposit scheme, V-GenU™ SB account, forminors. Account holders of the scheme who are above 12 years of age areissued with specially designed ATM cards, for cash withdrawal at the Bank'sATMs.

16. Marketing Setup

Marketing Division at the bank's H.O. is actively engaged in designing newproducts, reviewing and fine-tuning existing products, conducting marketingcampaigns, creating awareness on technology-backed Alternate DeliveryChannels (ADC) offered by the Bank.








































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To nurture the customer friendly schemes of the Bank, like V-GenU™ SBAccount-GenU™ Unnati RD Account, V-Platinum SB Account etc, Bank is

sending Greeting cards to the customers on important occasions like birthdays,Examinations, Festivals etc. To enhance the hidden talents among children, V-GenU™ Drawing Competitions for different age groups were also conductedand over 5000 responses were received. Interactive events like V-GenU™'Hungama' were held at apartment complexes in major cities to give boost tothe growth of the new generation products of the bank. The Bank alsoconducted the 24th State Level Inter-High School Vijaya Bank V-GenU™ QuizContest during the year. All these initiatives yielded very encouraging resultsfor the Bank's core deposit portfolio and stronger relationship building withsuch clients.

17. Publicity and Public Relations

The Bank is continuing the existing outdoor publicity projects aimed atachieving heightened visibility through displays at prominent locations likeRailway Stations, Bus Stands and hoardings at prominent public places,highways and airports. During the last financial year, the Bank also carried outa major print media Ad campaign in the North and Central India in Hindi andregional language to elevate the visibility of Bank and its products /services.

18. Customer Service and Redressal of Complaints

There is a full fledged Grievance Redressal Mechanism in the Bank and allefforts are being made to resolve complaints within the stipulated time TheBank has constituted standing Committee on Customer Service, whichincludes a customer as its member. A Customer Service Committee of theBoard, which also includes a customer as one of its members, has also beenconstituted by the Bank. These Committees are meeting periodically andevaluating and monitoring the customer service and addressing thedeficiencies. The Bank also conducted a Customer Service study in Bangalorecity and arrived at informative inference. The study is proposed to be extendedto other metro cities, for proactively involving customers as integral part of 19. Information Technology (IT) Info Tech Progress

The Bank implemented, to varying extents, an Integrated TreasuryManagement System(ITMS), Human Resources Management System (HRMS),and Integrated Risk Management System(IRMS) during the year 2009-10. These systems have been operationalised and integrated with the Core BankingSystem on a centralized platform. These projects are expected to be rolled outenterprise wide during the current financial year.
















































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Having brought all branches under Core Banking Solution, RTGS and NEFT services are available to the Bank's customers from all its branches. Since

Straight Through Processing(STP) has been enabled in RTGS and NEFT, thecustomers do enjoy the benefit of immediate inter-bank fund transfer facility.During the year under review, SMS Alert facility was launched by the Bank. Asat March31, 2010, about 3.65 lakh customers of the Bank have opted for thisservice offered free with value propositions. The Bank has upgraded the infrastructure including the hardware at its DataCentre at Bangalore and the Disaster Recovery Centre at Mumbai to take careof the increased requirement of computing capacity after migration of allbranches to CBS.

Internet Banking:

V-Net Banking, the internet banking module of the Bank was upgraded to ahigher version during 2009-10. V-Net Banking now facilitates features likeonline funds transfer to other Banks through NEFT/RTGS, Online Registrationof beneficiary, availability of the latest challan formats for remittance of servicetax, Central Excise etc in addition to the earlier facilities like balance enquiry,account statement, intra bank funds transfer, transaction related SMS alerts,payment of indirect taxes, direct taxes and utility bill payments etc. With allthe branches working on Core Banking platform, all customers of the Bank canavail this facility with the convenience of accessing and transacting in theiraccount from any location at any time through Internet. So far, 44887 clients

are enrolled under the V-Net banking module.

ATMs During the year 2009-10, 71 more ATMs were operationalised, taking thenumber of Bank's ATMs to 435 as at the end of March 2010. Bank's customershave now access to more than56000 ATMs connected under National FinancialSwitch (NFS) across the country.

Cheque Truncation System (C.T.S) As directed by the Reserve Bank of India, the Bank has successfully

implemented cheque truncation system in NCR of Delhi. Bank is awaiting RBI'sdirections for rollout of the C.T.S. in other centres.

20. Human Resources Management

Manpower & Staff Productivity: Total staff strength of the Bank stood at 11565 in March 2010 as compared to11,975 in March 2009. Of the total staff, 5194 are Officers, 3866 Clerical Staff












































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and 2505 are in the subordinate cadre. The number of women employees as atthe end of March 2010 stood at 2211consisting of 905 Officers and 1306 Award

Staff, constituting 19.12% of total employees in the Bank. As at the end of March 2010, there were 199 employees belonging to physically challengedcategory and 568 employees belonging to Ex-Servicemen category.Productivity, measured by Business per Employee as of March 2010 stood atRs.9.30 Crore as against Rs.7.85 Crore for the financial year ended March2009.

Recruitment and Promotions: Bank is in the process of recruiting of 500 Clerks, besides recruiting 123officers in JMG-S-I and 3 officers in MMG-II. Through Lateral recruitment, theBank also roped in 112officials in MMG-S-II and 6 officials in MMG-S-III cadres

during 2009-10.

Training: Training system in the Bank has been strengthened by providing additionaland competent manpower and enhanced budgetary allocation. The trainingcurriculum has also been fine-tuned, in tune with the changing marketdynamics.Four executives attended Seminars/ Conferences held abroad during the year,while 348Branch Heads and 6 Faculty Members were trained on 'EffectiveBranch Management' programme conducted by NIBM, Pane. The Bank hadimparted Comprehensive Training for 85 officials in Credit, 60 officials in Forex

and 90 officials in Marketing during the year 2009-10.In all, the Bank, during the last financial year, imparted training to 7031employees constituting about 61% of the total employees. While 6289employees had undergone training in the Bank's own establishments, 742 weretrained at reputed external training institutions including overseas institutions.

SC/ST Employees: Out of the total manpower of 11565 as at the end of March 2010, 1636employees belong to SC category and 588 to ST category. A separate Cell forSC/ST has been created to look into the matters pertaining to these employeesand also to supervise implementation of Government of India guidelines in

service matters in respect of SCs/STs. SC/ST Cells are functioning in all theRegional Offices as well. The Chief Liaison Officer at H.O. is involved in all thepolicy decisions concerning SC/ST employees. Quarterly meetings are heldbetween representatives of SC/ST employees and the management. The Bankis also arranging pre-recruitment / pre-promotion training for SCs/STsregularly.Further, the Bank has designated one General Manager as Chief Liaison Officerto attend to the grievances of OBC and Minority Community Employees Bank
















































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is complying with the Reservation Policy of the Govt, of India, includingreservation for Persons with Disability.

Staff Relation : Continuation of the pro-active and humanistic approach by the Bank duringthe year yielded positive results for the Bank as it scaled new heights of excellence. Industrial relations in the Bank were cordial and harmonious,during the year. The consultative committee meetings and negotiatingcommittee meetings were held with the representatives of the recognizedunions at regular intervals to sort out the grievances of the employees and to

settle the disputes, if any, amicably. These meetings were attended by the topexecutives of the Bank as well.

Human Resources Management System: To enable faster decision making and error-free centralized employees' datamanagement, the Bank is implementing HRMS (PeopleSoft) Software. SeveralModules of the software have already been operationalised.

21. Housekeeping

Reconciliation with regard to all inter bank transactions has been drawn upto31.03.2010. As against the Reserve Bank of India Benchmark of six monthsfor reconciliation of outstanding inter branch entries, Bank's present status is

3 months. All outstanding entries under different sensitive accounts are alsobeing followed up promptly. Except entries relating to pending court cases, allother long outstanding entries have been eliminated.

22. Internal Inspection

The Bank has put in place a well-defined Audit policy. The Audit Committee of Board oversees the performance of audit functions on a regular basis,providing guidance and directions for improvement in the audit system andinternal controls in the Bank. The Bank conducts regularly Risk Based Internal Audit and Surprise

Inspections. In addition, inspection of 41 Forex Branches, 12 ServicesBranches, 27 Currency Chests, 10Regional Offices and 7 Head OfficeDepartments were conducted during the year. Branches are also subjected toIS Audit in accordance with the IS Audit PolicyBank has covered 76.54% of its business under concurrent audit by externalfirms of Chartered Accountants whereas 17 branches were subjected toConcurrent Audit by our Internal Inspectors. Bank is making use of












































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Information Technology in its audit system including Automation in Risk BasedInternal Audit System (RBIA).

23. Vigilance

The Vigilance Department at the Bank's Head Office is headed by Chief Vigilance Officer in the rank of Chief General Manager. The Fraud Prevention& Monitoring Ceil is also functioning under the Vigilance Department. TheVigilance Department overseas all vigilance functions of the Bank as per theguidelines of Central Vigilance Commission. Cases of frauds involving Rs. 1lakh & above are placed before the Board of Directors, reports forwarded to RBIas and when frauds are detected and reported. The Audit Committee of the

Board is also apprised of frauds of Rs. 1 lakh & above on quarterly basis.Incompliance with RBI guidelines, a Special Committee of the Board isconstituted to review large value frauds involving Rs. 1 Crore & above. Afterstudying modus operandi of frauds detected, Bank issues suitable instructionsto the field functionaries as preventive Vigilance measure. Bank has also put inplace "Whistle-Blowers ―Policy ; accordingly, it is the bounden duty of staff members to report to the Chief Vigilance Officer/ Executive Director/Chairman & Managing Director the incidence of fraud/malpractices, etc. whichcome to their knowledge in the course of their day-to-day functioning.Further, the Vigilance Department carries out surprise inspection of branches,concentrating on preventive vigilance by Field Vigilance Officers stationed at

Regional Offices. All efforts are made to plug the loopholes in the existingsystem to prevent recurrence of similar frauds and to strengthen the preventivevigilance machinery.

24. Compliance

Board approved Compliance Policy is a requirement under the extant RBIguidelines and accordingly, the Bank adopted a Compliance Policy. TheCompliance Department, H.O. ensures compliance with variouscommunications received at Head Office from Govt, of India, Reserve Bank of India, IBA and others by sending all such communications to the concerned

operational Departments for necessary action. The Compliance Department isheaded by the Chief Compliance Office-who is in the rank of a Deputy GeneralManager.

25. Right to Information Act. 2005

Government of India has enacted the Right to Information Act, 2005 which hascome into force on October 12, 2005. The Act provides for right to every citizens














































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to secure access to information under the control of public authorities,consistent with public interest. It aims to promote openness, transparency and

accountability in administration and in relation to matters connected therewithor incidental thereto. The second line Executive at the Regional Offices are designated as the PublicInformation Officer and the Regional Heads are designated as the AppellateAuthority under the Act. At the Head Office, a Deputy General Manager isdesignated as the Public Information Officer and a General Manager as theAppellate Authority.As per the provisions of the Act, various information sought under the Act isbeing provided within the prescribed time frame. During the year 2009-10, theBank received 377applications and 52 appeals under the Act and the samehave been responded to by the Bank.

26. Security Arrangements

The Bank has a well-established Security set-up, facilitating all the essentialand mandatory security arrangements at branches and currency chests as perRBI/IBA guidelines.1056 Branches of the Bank are provided with strong roomconforming to RBI specification. However, branches without strong room as perRBI specification are proposed to be shifted to new premises in a phasedmanner. CCTV Surveillance System has been installed at select brancheskeeping in view the threat perception, volume of cash and valuables handledand need for continuous surveillance.

The Bank has 29 currency chests. Police guards have been provided to 28currency chests. A private security agency sponsored by Directorate General of Resettlement has-been arranged for round the clock guarding of Bank'sBhubaneswar Currency Chest. Training, including firing practice organized for Armed Guards deployed atcurrency chests / branches, is imparted on an annual basis. SecurityCommittees formed at Regional Offices and at the Head Office meet periodicallyto review various security aspects. The Bank has 414 Armed Guards posted to vulnerable branches / cash escortduties at currency chests and for guarding Head Office. There were no incidents of Dacoity /Robbery, except, eight incidents of

Burglary at branches reported. However, there was no loss of cash or property.

27. Awards

In recognition of performance in implementing Hindi Language, the Bank wasawarded III prize under the prestigious INDIRA GANDHI RAJBHASHAPURASKAR for the year 2007-08. The Bank has also been awarded II prize in











































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Region 'C" for Progressive Use of Hindi under Reserve Bank Rajbhasha ShieldScheme for the year 2008-09.

The Bank was awarded I prize by Regional Implementation Office (North- East),Ministry of Home, Govt, of India in North Eastern Region for Progressive Use of Hindi for the year2008-09. SLBC Gujarat also conferred on the Bank III prizefor effective implementation of the Official Language. The Bank's Regional Office, Bangalore (North) was awarded I Prize by TOLIC,Bangalore for effective Implementation of Official Language for the year 2008-09. Also Regional Offices, Kolkata and Hubli, were awarded II Prize by TOLIC,Kolkata and Hubli respectively for effective Implementation of OfficialLanguage. Regional Office, Ahmadabad has been awarded Consolation prize by TOLIC, Ahmadabad during the year. The staff members working in Bangalore city participated in the Inter-Bank

competitions conducted under the aegis of TOLIC. 12 competitions wereconducted, in which our Bank bagged 9 prizes, out which 2 were First prizes.During the year, the Bank received an award from the NABARD in recognitionof the highest share of SHG business to its overall business, under SHG Banklinkage programme or the year 2008-09, among commercial Banks in the Stateof Karnataka.

28. Corporate Social Responsibility

As a responsible and responsive corporate citizen, Vijaya Bank consistentlyengages itself in community and social investment. Among the various

initiatives,• For the cause of promoting Education, Bank donated a class Room to St.MariaGoretti Higher Primary School at Kukkundur, Karkala, contributed Rs. 5lakhs to BharatiyaVidya Bhavan, Shimoga, for construction of Building,donated computers to S.B. High School at Holalkere, contributed to 'AkshayaPatra' school children's mid-day meal programme, in Karnataka State.• Financial Inclusion is yet another aspect where the Bank has actively involved itself.

29. Board meetings and Meetings of other Sub Committees of the Board

During the year, 12 Meetings of the Board of Directors, 19 Meetings of theManagementCommittee of the Board, 9 Meetings of the Audit Committee of theBoard, 4 Meetings of the Directors' Promotion Committee, 6 Meetings of theRisk Management Committee of the Board,4 Meetings of the Committee toReview Large Value Frauds of Rs. 1 Crore and above, 2Meetings of theRemuneration Committee, one Meeting of the Nomination Committee,4Meetings of the Customer Service Committee, 4 Meetings of the












































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Shareholders'/ Investors‘ Grievances Committee and 12 Meetings of the Share Transfer Committee were held.

30. Board of Directors

During the year 2009-10, the following changes have taken place in theConstitution of the Bank's Board :-1. Shri. S C Kalia, Executive Director demitted the Office of Vijaya Bankon20.11.2009.2. Mrs. Shubhalakshmi Panse has been appointed as Executive Director of theBank w.e.f.20.11.09 vice Shri. S.C. Kalia.3. Shri. Brij Mohan Sharma, Non Official Director appointed under CA categoryceased to be the Director w.e.f. 2.1.2010.

The Bank's Board as on 31st March. 2010 comprised the following Directors :-i. Shri Albert Tauro, Chairman & Managing Directorii. Mrs. Shubhalakshmi Panse, Executive Directoriii. Shri G.B. Singh, Government Nominee Directoriv. Shri K. Venkatappa, RBI Nominee Directorv. Shri P. Shantharam Shetty, Workmen Directorvi. Shri Ranjan Shetty, Officer-employee Directorvii. Shri Nishank Kumar Jain, Non Official Directorviii. Shri Sridhar Cherukuri, Non Official Directorix. Shri B. Ibrahim, Non Official Directorx. Shri Ashok Kumar, I.A.S (Retd.), Shareholder Director

xi. Shri Ashok Kumar Shetty, Shareholder Directorxii. Shri S. Ananthan, Shareholder Director The Board of Directors place on record their appreciation of the valuableservices rendered by Shri. SC. Kalia and Shri. Brij Mohan Sharma during theirrespective tenure in the Bank.

Acknowledgement The Board of Directors place on record their sincere appreciation for theexcellent support and co-operation extended to the Bank by all customers,shareholders, staff members, financial institutions and other Banks, theReserve Bank of India, the State Governments, the Securities and Exchange

Board of India and the Government of India in improving its overallperformance during the year 2009-10.for and on behalf of the Board of Directors

Head Office, Bangalore Albert Tauro

Dated, the 30 April, 2010 Chairman & Managing Director
















































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Organization structure

chief manager

assistant branchmanager

clerks










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Departments in a Bank

As soon as it becomes necessary, on account of volume of business, to dividethe work in a bank into divisions, each employing a group of clerks, suchdivision is organized into a department having a department head who isusually a teller, a head bookkeeper, or perhaps a junior officer. In the verylarge banks the executive staff is itself organized into groups, and there may bea vice - president and one or two assistant cashiers in charge of each importantdepartment.

The work of a department in a large bank is nothing more nor less than thework of a single man in a small bank, apportioned among several men. Forexample, the receiving teller in a five-man bank will take the deposit, count the

cash, examine the checks, assort them as to place payable, enter them uponthe proper records and make a settlement or proof at the end of the day. In alarge bank each of these operations is performed by a different man or group of clerks under the direction of the receiving teller, who is head of thedepartment. It may be that he himself will do very little if any of the detailwork. He becomes the manager. Frequently we find a department within adepartment, as for example, the money department within the paying teller'sdepartment.
























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The ordinary departments, classified as to group, may be described as follows

Chief

Manager

Executives

Assistant

branch

Tellers

Book

keepers














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Executives

Loan or

discount

department

Auditors

department

Analysis or

statistical

department

Credit

department
















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EXECUTIVES

DEPARTMENT

Loan or Discount Department (Executive): Receives notes submitted fordiscount or makes loans. Figures discount and interest. Has charge of collateral securing loans.

Credit Department (Executive): Secures and collects information relating toborrowers. Checks statements submitted by them. In charge of credit fileswhich contain information as to the reliability, business habits and financial

strength of borrowers.

Analysis or Statistical Department (Executive): Usually found in city banks.Analyzes the accounts of depositors to determine which are profitable andwhich are losing accounts. Makes monthly reports to officers. In charge of statistics relating to the bank's accounts.

Auditor's Department (Executive): Responsible for the settlement of the variousdepartments. Reconciles the accounts with other banks. Certifies interestcalculations.





















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Teller

department

Note teller Collection

departmnt

Transit

departmnt

Receiving

teller

Paying

teller
















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TELLER DEPARTMENT

Paying Teller's Department (Teller): Pays or certifies checks. In charge of the

signature book or cards bearing the authorized signatures of all depositors.

Ships currency. In charge of the vault cash and reserves.

Receiving Teller's Department (Teller): Receives deposits. Distributes checks tobookkeepers and other departments. Prepares exchanges for clearing house.

Turns cash over to the paying teller at end of day.

Note Teller's Department (Teller): Collects notes and drafts due at the bank or

elsewhere in the city. Usually in charge of the runners or messenger

department, which is a subdivision.

Collection Department (Teller): Collects notes, drafts, and other "time" items

when payable out of town. Credits accounts of depositors when collections are

advised paid.

Transit Department (Teller): This is a subdivision of the receiving teller's

department and may be known by other terms, such as correspondence,

foreign check, miscellaneous check or country check department. Assorts

checks payable out of town, endorses them and lists them on letters addressed

to other banks. Gives totals of outgoing or remittance letters to general ledger

bookkeeper at end of day.
























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Book keepers

General

ledger

department

Individual

ledger

Department

Country

bank

account















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BOOK KEEPING

DEPARTMENT

Individual Ledger Department (Bookkeepers): Keeps the records of the balancesof individual depositors. May be subdivided as to kind of accounts (savings,dealers), in addition to ordinary alphabetical division. May balance pass-booksor there may be a separate department for this purpose using the statementsystem. Figures interest on accounts.

General Ledger Department (Bookkeepers): Keeps the general or controlaccounts of the bank. Makes up the bank's statement of condition.

Country Bank Account Department (Bookkeepers): Confined to city banks.Keeps the accounts of other banks, usually consisting of reserve accounts

In addition to these departments, there are others to be found either in verylarge banks or even in small banks operating special features. Among the firstmight be noted the coupon department, exchange department, purchasingdepartment, filing department, interest department, new business department,etc., all of which terms are self-explanatory. Among special departments maybe mentioned the bond department, safety deposit department, special depositdepartment (securities and valuables stored with the bank, but not placed inprivate boxes). In trust companies there is the trust department which mayhave a complete independent organization of its own, with officers, bookkeepersand other clerks. This department has charge of the trust accounts.


























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Bibliography




Documents

organization study on canara bank