BoB to set up 100 branches abroad by 2010

Bank of Baroda (BoB), as part of its overseas expansion plans, will set up 100 branches abroad by 2010.

"By setting up 100 branches abroad by 2010, we expect 25-30 per cent of our profits from banking to come from our global operations," said A S Khurana, BoB general manager, international operations and treasury. BoB also intends to launch the products of its mutual fund subsidiary BoB Mutual Fund overseas.

The bank has already introduced its debit and credit cards in various countries including the UK where it has seven branches.

Currently BoB has 61 overseas offices in 17 countries, contributing nearly 15 per cent to the bank's balance sheet and around 19 per cent to its bottomline as of 2002-03.

As in March 2003, its operating profits from the overseas operations were around Rs 200 crore and the net profit was at Rs 150 crore.

The bank's global assets have increased from $924 million in 2002-03 to $1,139 million in the nine months of fiscal 2004.

Deposits have equally shown a handsome increase from $13,977 million to $15,160 million during the period. Till date the bank has invested Rs 850 crore in setting up its overseas operations. Plans are afoot to raise additional capital to meet future needs.

By June, BoB will set up at least three-four global offices. The bank will open its fully owned subsidiary in Tanzania next month, and has received necessary government approvals for setting up operations in Singapore and Thailand.

It is awaiting approval for setting representative offices in China and Malaysia. The bank also plans to expand to Argentina, Australia, Canada, Egypt, Namibia, New Zealand, Nigeria, Thailand, Trinidad and Tabago.

BoB is also waiting for the Reserve Bank of India's approval to set up an offshore banking unit in Singapore and for opening a branch at Houston in the US.