Bank of Baroda expects uptick in education loans, targets 11% market share

BoB is targetting a post-consolidation market share in education loans of 11%

Even as Indian banks reported an uptick in stressed education loans, public sector lender Bank of Baroda (BoB) expects a growth in education loans portfolio during the financial year 2019-20.

According to the Indian Banks’ Association (IBA), the non performing assets (NPA) in the education vertical jumped to 8.97% in March 2018 vis-a-vis 7.29% in March 2016. The bad loans of public sector banks (PSB) in the education sector stood at 5.70% in March 2015.

BoB, which merged smaller PSB peers Dena Bank and Vijaya Bank with itself, is targetting a post-consolidation market share in education loans of 11% by the end