BoB to focus on agri financing

Bank of Baroda aims to focus on rural financing. "We plan to increase credit availability to the agricultural sector to over 18 per cent in the next financial year from 15 per cent at present," P S Shenoy, chairman and managing director of the bank said.

Shenoy was in Gandhinagar on Tuesday to inaugurate the Baroda Swarojgar Vikas Sansthan, an institute which aims to provide employment-related training to self help groups.

Of the total lending this fiscal year, over 45 per cent has been to the primary sector, Shenoy said. Primary sector lending for BoB in the current fiscal includes over 15 per cent for agriculture, 15 per cent for small sector industries (SSIs) and the remaining 15 per cent for other primary sectors, the CMD said.

Of the remaining 55 per cent, the bank has financed 20 per cent of its total loans to medium-scale industries, 20 per cent to large-scale industries and 15 per cent to the retail banking sector, Shenoy added.

"The rural economy is coming up in a big way and Bank of Baroda, with more than 50 per cent of its branches in rural and semi urban areas, will have a distinct advantage," Shenoy said.

"The bank has lowest interest rates (8.5 per cent for loans up to Rs 50,000) for financing the agricultural sector's needs. The average interest for loans to the rural sector has fallen from 11 per cent to 9 per cent," he claimed.

Bank of Baroda expects to close the current financial year with a growth of over 25 per cent in operating profit and a 35 per cent surge in net profit.

It hopes to add 150 branches and record a 20 per cent growth in net profit in the next financial year. While the net NPAs of the bank has been reduced to 3.4 per cent, with the new Securitisation Act being enforced, the bank targets to further reduce the net NPAs below three per cent.

Bank of Baroda on Tuesday inaugurated Baroda Swarojgar Vikas Sansthan (BSVS), an institute which aims to provide employment-related training.

"The BSVS at Gandhinagar is the third such institute of the bank. BoB has similar centres in Jaipur and Lucknow. The bank also plans to open more such institutes in the state "" the next institute is expected to be open in Surat soon," said P S Shenoy.