As advances lose steam with the rising interest rate scenario and the fixed deposit rates go up, city-based public sector lender Bank of Baroda (BoB) today said it will bring down its dependence on bulk deposits and will focus more on CASA deposits to shore up its funds.
"Our thrust this fiscal will be on the efficient pricing of deposits and loans, higher CASA (current and savings accounts) mobilisation and lower dependence on bulk deposits to ensure better margins," bank chairman and managing director MD Mallya told PTI on the sidelines of its 15th annual general meeting here.
"We would endeavour to attain a well-balanced growth in its loan book across different sectors like retail, SMEs, agriculture, wholesale and across different geographies, including overseas markets," Mallya added.
The chairman further said, the bank plans to add 500 more branches this year and open nine branches overseas. "With the addition of 500 more branches, total number of branches will go up to 4,000 with a footprint in all the states and Union Territories of the country," he added.
These overseas branches will come up in the UAE, and the African nations of Kenya, Botswana and Uganda. BoB has over 39 million global customers as of now.
The city-based bank, which was founded by Sayajirao Gaekwad III, the king of the erstwhile princely state of Baroda, in 1908, also announced 165 per cent (Rs 16.50 a share) dividend, against Rs 15.50 it had paid the year before.
On the recruitment, Mallya said, the bank would hire 4,000 personnel in the current year.
Stating that the current fiscal is going to be quite challenging for the banking industry, Mallya said given this, managing credit growth above industry-average along with superior asset quality will be the key challenge for the bank.
