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| Edited By: Neelasri Barman & Parnika Sokhi |Source: DNA |Updated: Mar 17, 2018, 03:42 AM IST
Bank of Baroda (BoB) plans to open twelve international branches in FY11. In the domestic market, the bank plans to have 400 additional branches.
“By June, we will have a branch in Auckland and we will open our tenth branch in the United Kingdom. This fiscal, we also plan to expand in the African subcontinent and would open five branches there,” said M D Mallya, chairman and managing director. The bank currently has 78 branches abroad and by the end of FY11, Mallya sees this number climbing to 90.
On Friday, Malaysia awarded a commercial banking licence to a locally incorporated bank to be jointly owned by BoB, Indian Overseas Bank and Andhra Bank.
BoB would hold a 40% stake in the bank, while Indian Overseas Bank and Andhra Bank would hold a 35% and 25% stake, respectively.
“We would start operations soon. It may be possible that we start operation in 2010 itself,” said Anil Girotra, executive director, Andhra Bank.
Besides branches, BoB plans to open three outlets in Gulf.
“These outlets will be an extension of ATMs with a couple of people. The bank is not permitted to lend money but they can mobilise resources,” Mallya said.
In the domestic market, the bank plans to open 400 branches, which will increase its total branch network to 3,500 by the end of FY11.
BoB has its roadmap ready to cover the districts and villages allotted under the lead banking scheme. It has identified the unbanked areas in Rajasthan and Uttar Pradesh for financial inclusion.
These areas will be divided into ones that need brick and mortar branches and ones that will need virtual banking with a help of technology or the ones that will have access through business correspondents.
BoB is also planning to recruit 3,500 people this year. Credit growth is expected to pick up in the current fiscal and the bank is expecting a 25% growth in its loan book. The capital requirement for the bank will be Rs 1,500 crore for the current fiscal, Mallya said.
BoB plans to raise $1.5 billion via dollar bonds, out of which it has raised only $650 million in two tranches so far. The last issue was in March where the bank had raised $350 million.
