VIJAYA BANK

INTRODUCTION

Vijaya Bank is one of the medium sized banks in India with substantial presence in most parts of
the country. It's Mr. A. B. Shetty along with few other enterprising farmers from Mangalore in
the state of Karnataka, who established Vijaya Bank on October 23, 1931. The goal was to
promote the habit of banking, savings and entrepreneurship among the farmers in Dakshina
Kannada district of the state. It became a scheduled bank of India in 1958. Vijaya Bank is also
one of the very few banks in India that has principal VISA International and MasterCard
International membership.

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

The Growth
Since its inception, Vijaya Bank went through a steady growth and became a large All India
bank. From 1963 to 1968, nine smaller banks merged with Vijaya Bank. Mr. M. Sunder Ram
Shetty, the then Chief Executive of Vijaya Bank, played an instrumental role in the
amalgamation. On April 1980, Vijaya Bank became nationalized. Currently, this Indian bank has
an extensive network of 1,124 branches, 43 Extension Counters and more than 375 ATMs across
the nation. It also has a dedicated workforce of 11,746 employees.

MANAGEMENT

Directors (Position - 02.08.2010)

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

1. Shri. Albert Tauro, Chairman & Managing Director

2. Smt. S. A. Panse, Executive Director
3. Shri. G.B.Singh, Govt. Nominee Director.
4. Smt. Suma Varma,  RBI Nominee Director.
5. Shri. P. Shantharam Shetty, Workmen Director.
 6. Shri. Ranjan Shetty, Officer-employee Director
7. Shri. Ashok Kumar Shetty, Shareholder Director.
8. Shri. Ashok Kumar, Shareholder Director.
9. Shri.  Nishank Kumar Jain, Non Official Director
10. Shri. Sridhar Cherukuri, Non Official Director
11. Shri. S. Ananthan, Shareholder Director
12. Shri. B. Ibrahim, Non Official Director

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

13. 07. 2010)

1. Shri. K. Jayakar Shetty.

2. Shri. V. Mohandas Shetty.
3. Shri. J. Pandiyan.
4. Shri. Shantharam Kamath.
5. Smt. K. Chandra.
6. Shri. Prakashchandra Shetty.
7. Shri. C.R. Chandramouli  ( Chief Vigilance Officer )
8. Sri. M.B.Gurumurthy
9. Sri. N. Devadas.

General Manager at Regional Office

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

2. Shri . Raviraj Hegde K            : Regional Office, Delhi

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

SERVICES OFFERED BY VIJAYA BANK

Vijaya Bank offers a range of financial products and services to its customers. It also has
services for the NRIs. Following are the products and services offered by Vijaya Bank to its
customers:

 Deposits
 Loans & Advances
 NRI Services
 Remittance / Collection
 Credit Cards
 Forex
 Other Services
Deposits

Vijaya Bank offers following deposit facilities:

 Savings Bank
 V Payroll SB a/c
 V Genuth SB a/c
 V Balika SB a/c
 V Platinum Savings Bank
 Vijaya Saral
 Current Account
 VStar Savings
 Term Deposits
o Recurring Deposits
o VCash
o Vijayashree Units
o Fixed
o V Balika Deposit
o Jeevan Nidhi
o Capital Gains Accounts
o Vijaya Tax Savings Scheme

Loans & Advances

Vijaya Bank offers a wide array of loans and advances to its customers. Those can be listed as
below:

 Retail Lending Schemes

o Vijaya Home Loan
o V Niwas
o V Mortgage Loan
o V Wheels
o V Equip
o V Rent
o V Cash
o V Rakshak
o V Shikshak
o V Swashakti
o V Professional
o V Solar
o V IPO
o Trade Finance
o Education Loan
o Jewel Loans
 o Vijaya Gold Cash Credit
o Loans to Transport Operators
o V Reverse Mortgage
 Loans Against
 Non Fund Based
 Advances to Agriculture, MSME and Others
 Government Sponsored Schemes
o Prime Minister's Rozgar Yojana
o Swarna Jayanti Gram Swarozgar Yojana
o Scheme for Liberation and Rehabilitation of Scavangers
o Golden Jubilee Rural Housing Scheme
o Differential Rate of Interest Scheme
 Special Schemes for Women
 Facilities to Minority Communities

NRI Services

Vijaya Bank offers following services for the NRIs:

 Deposits
o NRE
o FCNR
o Ordinary Non Resident A/c
o Resident Foreign Currency
o Deposit A/c (RFC)
 Loans
o Housing Loan
o Loans Against Shares, Securities
 Remittances

Remittance / Collection

Following services are offered by Vijaya Bank under this category:

 FOREX Remittances
 Inland Remittances
 Electronic Remittances Services
 Inward / Outward Collection Instruments

Cards

Vijaya Bank offers various types of cards to its customers. Following are those:

 Domestic Cards
 o VISA Classic Credit Card
o MasterCard Classic Credit Card
o Vijaya Platinum Card
o VISA Gold Credit Card?
 Global Cards
o MasterCard Global Credit Card
o Visa Classic International Card
o VISA City Specific Card
o VISA Doctor's Card
o VISA Nurse's Card
 Debit Cards
o VISA Debit Card

Other Services

Vijaya Bank also offers a few more services to its customers which can be listed as below:

 Merchant Banking
 Vijaya Raksha
 Service Charges
 Pension Payments
 Mobile Banking

4.1 The powers and duties of officers and The officers of the Bank have been delegated with
b employees powers to discharge their functions to carry on the
(ii) business of the Bank as defined under Section 6 of
the Banking Regulation Act, 1949. Some of the
powers are as follows :  

1.     To receive and sign and give effectual receipts

and discharges for all and any moneys which shall
come into his/her hands.  

2.     To receive and pay deposits on terms and

conditions to be determined from time to time by
the Board of Directors of the Bank and to issue and
sign receipts and Pass Books with regard to such
Deposits thus received and paid and also to pay
interest on Fixed and other Deposits in accordance
with the rates fixed and determined by the Board of
Directors of the Bank from time to time or

41 b (iii) The procedures followed in
decision making process,
including channels of
supervision and accountability
Item No. Provision
   
specially in any case.
3.     To open, to operate upon and close Accounts
on behalf and in the name of the Bank with Banks,
Bankers and others in and outside India and to
overdraw on such Account or Accounts and for all
such purposes to draw, sign and issue cheques,
Receipts and discharges or other instruments in
such manner as to him/her may appear requisite or
advisable and periodically to examine, state, settle
and adjust accounts pending between the Bank and
any person or persons whatsoever.          
There is a well defined system in the Bank
regarding the decision making process. The Bank
functions under the overall supervision and control
of Board of Directors of the Bank to formulate the
policies pertaining to the Bank’s functioning. For
implementation of such policies, officers in various
scales are delegated with powers depending on the
hierarchy and the placement. All employees of the
Bank in discharging their functions have to follow
the Book of Instructions which covers the entire
gamut of banking transactions. Wherever other
functions are involved, they are governed by
Manual of Instructions pertaining to each
department. Apart from this, the Head Office is
also issuing circular instructions from time to time
conveying the changes in policies of the Bank for
implementation by its officers. Officers, after due
processing of the relevant subject matter/ papers,
take decision on the merits. Any officer deviating
from the laid down policies of the Bank is liable to
be penalised under the Vijaya Bank Officer
Employees (Conduct) Regulations, 1981 and
Vijaya Bank Officer Employees (Discipline &
Appeal) Regulations, 1981
Details
1.   To do generally every thing requisite for all or
any of the aforesaid purposes and also for other
general Banking Business usually done by Joint
Stock and other Banks.

41 b (iii) The procedures followed in
decision making process,
including channels of
supervision and accountability
4.1 b (v) The rules, regulations,
instructions, manuals and
records held by the Bank or
under its control or used by its
employees for discharging its
functions.
2.    Generally to sign, execute, do and perform
such instruments, indemnity bonds,    guarantees/
guarantee letters and other documents and all acts
and things as may be requisite or necessary.
There is a well defined system in the Bank
regarding the decision making process. The
Bank functions under the overall supervision
and control of Board of Directors of the Bank to
formulate the policies pertaining to the Bank’s
functioning. For implementation of such
policies, officers in various scales are delegated
with powers depending on the hierarchy and the
placement. All employees of the Bank in
discharging their functions have to follow the
Book of Instructions which covers the entire
gamut of banking transactions. Wherever other
functions are involved, they are governed by
Manual of Instructions pertaining to each
department. Apart from this, the Head Office is
also issuing circular instructions from time to
time conveying the changes in policies of the
Bank for implementation by its officers.
Officers, after due processing of the relevant
subject matter/ papers, take decision on the
merits. Any officer deviating from the laid down
policies of the Bank is liable to be penalised
under the Vijaya Bank Officer Employees
(Conduct) Regulations, 1981 and Vijaya Bank
Officer Employees (Discipline & Appeal)
Regulations, 1981
The Bank has brought out a large number of
‘Manuals of Instructions’ Codified Circulars,
Guidelines on Documentation, Scheme for
Delegation of Powers, besides the periodical
Circulars/Circular letters.   These are being used by
the employees while discharging various
functions.   These are all meant only for internal
circulation.
4.1 b (vi) A statement of the categories These are mainly register of shareholders/record
of documents that are held by of the proceedings of the AGMs, Board Meetings
the Bank or under its control. and various committee meetings, documents
executed by customers/borrowers/ guarantors,
contracts with third parties, etc. These documents
are all private information and can not be shared
with the public.
Item No. Provision Details
All the branches of the Bank have been
computerized and data is held in electronic form
    which may be provided to the concerned customers
or the various authorities as provided in various
Statues.

4.1 b (vii) The particulars of any arrangement Presently, the bank’s shareholders can raise
that exists for consultation with or issues concerning policies in the Annual
representation by the members of the General Meetings.   Further, the Bank’s
public in relation to the formulation quarterly results/annual results/reports are
of its policy or implementation published for the information of public, as well
thereof as shareholders which would give an idea about
the policies of the Bank and implementation
thereof. The Bank has set up a Customer
Service Committee at the level of the Board
comprising the following members :

1. Chairman & Managing

Chairman of the
Director
committee
  
2. Executive Director Member
3. RBI Nominee Director Member
4. Non Official Director Member
5. Sri T. Rudrappa,  
Member
(representing the customers)
One member is representing the customers of
the Bank. The decisions of the Committee are
placed before the Board of Directors of the
Bank if any policy changes are involved

4.1 b (viii) A statement of the Boards, Councils, The Bank has constituted various
Committees and other bodies consisting of committees of the Board:-
two or more persons constituted as its part or
 for the purpose of its advice, and as to
whether meetings of those boards, councils,
committees and other bodies are open to the
public or the minutes of such meetings are
accessible for public
1. Management Committee of the
Board
2. Audit Committee of the Board
3. Directors promotion Committee
4. Risk Management Committee
5. Special Committee to review
fraud cases of Rs.1.00crore &
above
6. Share Holders & Investors
Grievances Committee
7. Share Transfer Committee
8. Customer Service Committee
9. Remuneration Committee 
10. Nomination Committee
11. Committee to Settle Election
Disputes
12. Committee to consider appeals
preferred by
employees against final orders
issued by CMD as DA.

The Management Committee of the Board has been constituted to consider various business
matters of material significance like sanction of limits whether fund based or non fund based
twice the limits enjoyed by the Chairman & Managing Director, Compromise/write off, sanction
of capital and revenue expenditure, premises, investments, donations, etc.   The committee
exercises such powers as may be delegated to it by the Board with the approval of Central
Government and concurrence of RBI

Audit Committee of Board (ACB)

The ACB provides direction as also overseas the operation of the total audit function in the
Bank. Comprising the organisation and quality control of internal audit and inspection within the
Bank and follow up the statutory/external audit of the Bank and inspections of RBI. The
committee specially focuses on the follow up on

1. Inter branch adjustment a/cs

2. Unreconciled long standing entries in Inter Branch accounts & NOSTRO accounts
 3. Arrears in balancing of books at various branches
4. frauds
5. major areas of house keeping. The Audit Committee of the Board comprises of 5
Directors, with Non-Executive Independent Director with financial knowledge as the
Chairman of the Committee.

Audit Committee Board

The committee consists of the following Directors :-  

1.  Sri. S. Ananthan - Chairman of the committee.

2.  Executive Director - Member
3.  Govt. Nominee Director - Member
4.  RBI Nominee Director  - Member
5.  One Non-Official Director - Member

  The functions of Audit Committee includes the following:-

 Overseeing the Bank’s financial reporting process and ensuring correct, adequate and
credible disclosure of financial information.
 Reviewing with the Management, Financial statements with special emphasis on
accounting policies and practices, compliance of accounting standards and other legal
requirements concerning financial statements, qualifications in the audit report,
compliance with stock Exchange guidelines and legal requirements concerning financial
institutions, related party transaction, etc.
 Reviews the findings of investigation by the internal auditors in the matters where fraud
is suspected or irregularity or failure of internal control system is observed and suggests
strengthening of control mechanism.
 Interacts with Statutory Central Auditors before the finalization of the annual/half yearly
and quarterly accounts and reports, focusing on the changes in accounting policies and
practices and qualifications in the draft Audit Report.

Looking into the reasons for substantial defaults in the payments to the depositors, shareholders,
debenture holders and creditors, if any.   

Committee to Review Fraud Cases 

With a view to provide focused attention on monitoring of frauds involving amounts of Rs.1
crore and above, a committee of the Board to monitor large value frauds has been constituted in
terms of the guidelines of RBI.   The committee consists of the following Directors :-  

1. Chairman & Managing Director

2. Executive Director
 3. Three Directors  [ Non-Official / Shareholder Directors ] 

Customer Service Committee 

Pursuant to directives of RBI, Customer Service Committee has been constituted with the
following directors as members:-  

1. Chairman & Managing Director, Chairman of the committee.

2. Executive Director. - Member
3. RBI Nominee Director. - Member
4. one Non-Official Director. - Member