BoB business grows 24% to Rs 1,55,000 cr in FY06

Bank of Baroda (BoB) has posted 24.3 per cent growth in its business, comprising deposits and advances, at Rs 1,55,000 crore for the financial year ended March 2006. The deposit base and credit grew 16.5 per cent and 37 per cent respectively.

The credit growth has been robust as all sectors, including retail and small businesses, have carried out expansion in activities.

A similar trend of credit growth in excess of 25-30 per cent will continue in 2006-07 (the current financial year) as well, BoB Chairman and Managing Director Anil Khandelwal said.

He was speaking to reporters at a function to announce the bank's mutual fund distribution tie-up with Birla Sunlife Asset Management company.

The public sector bank has a similar tie-up with UTI Mutual Fund, as well. The bank is forging such alliances in line with its plans to grow fee-based income.

BoB will concentrate on increasing its retail portfolio and will recast operations of three subsidiaries, including BoB Capital Market, in the current financial year.

It expects to raise share of retail segment in its business portfolio to 25 per cent by the end of March 2008 from about 17-18 per cent now, he said.

The bank will explore options to shift primary dealership business from BoB Capital to its own book. It plans to initiate equity broking business through BoB Capital, he added.