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BoB set to form stock broking JV

In talks with four broking houses; to open more offices overseas

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Our Bureau Kolkata
Last Updated : Feb 06 2013 | 7:21 PM IST
Bank of Baroda (BoB) is set to float a joint venture stock broking company and is at present talking to around four large stockbroking houses for a possible tie-up. The equity base of the company is likely to be around Rs 100 crore.
 
The bank has also firmed up plans to open up a subsidiary in Tanzania, representative offices each in Malaysia and China and an offshore branch in Singapore.
 
It has also targeted a 50 per cent rise in net profit from overseas operations this year and is hopeful of achieving a Rs 300 crore figure.
 
Talking to newspersons today, chairman and managing director of BoB P S Shenoy said that the bank was in the process of talking to four large stock broking group and was likely to finalise a deal in the next few months.
 
"We are in the process of readying the business model of the company," he added. The bank was also likely to declare a dividend this year and it was comfortable on all measures stipulated by the Reserve Bank of India for being able to declare dividends on its own.
 
BoB had declared a 30 per cent interim dividend in December. This year the bank hopes to bring down its net non-performing assets (NPA) below two per cent and its gross NPA below six per cent.
 
"Our bank's net NPA was around 3.47 per cent in December 2003, which was likely to fall below three per cent in 2003-04," he said.
 
Shenoy said the bank has targeted a 20 per cent growth in balance sheet size as well as its net profit in 2004-05.
 
Talking about its subsidiary companies, Shenoy said, "The target was to expand all its subsidiaries like merchant banking, housing finance and asset management business."
 
It has also firmed up plans to sell non-life insurance products from one of the public sector insurance companies and has shelved the idea of opening selling life insurance products.
 
"We have as of now abandoned the idea of selling life insurance products, and would concentrate on the non-life segment. After we have gained considerable experience in selling non-life products should we plan to enter the life business," explained Shenoy.

 
 

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First Published: May 06 2004 | 12:00 AM IST

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