BOB plans GenNext branches for Vadodara, Ahmedabad

Bank of Baroda (BOB), one of the fastest-growing public sector banks, plans to set up its first ever GenNext branches targeting the youth in two major cities in Gujarat, by the year-end.

A K Khandelwal, Chairman and Managing Director, BOB, told reporters, "We are taking new initiatives to target the youth in Gujarat as we are setting up two GenNext branches."

The bank will set up one each of the GenNext branches at Ahmedabad and Vadodara by the year-end.

The GenNext branches will have an ambience that will be vibrant and appealing to the youth. The target market is the professional youth in the age group of 18 - 25 years.

Last year, the bank started the GenNext branch in Pune on an experimental basis. After receiving an encouraging response from its GenNext branch in Pune and the bank has decided to open its first two GenNext branches in Gujarat.

The bank has selected Vadodara, as the bank has a strong presence in the city while Ahmedabad is the largest city in the state.

Further expansion of the GenNext branches in Gujarat will be done after assessing the response to its operation in Vadodara and Ahmedabad.

The bank is also figuring out branch expansion plans across three states in northern India. The bank is presently looking at the possibility of expanding in UP, Haryana and Punjab.

Khandelwal stressed on the importance of competitiveness of public sector undertakings and stated that the bank will be a pioneer in the 24-hour human banking with over 80 branches operating round the clock by the end of the year.

He informed the press that the bank has taken steps forward to be a multi-specialist bank by foraying into retail banking, e-trading, insurance and mutual fund through JVs with players such as India Infoline, Andhra Bank and Reliance Capital.

The bank has also entered into an agreement with Italy-based Pioneer Investments for asset management and UK-based Legal and General (L&G) Insurance for insurance business. L&G is a £275 bn enterprise.

The bank's foreign branches make up 20 per cent to the operations and 33 per cent of the profit. The bank's UK operations completed 50 years in January this year.

The bank is expanding in West Asia, New Zealand and Canada. An offshore branch has started operating in Bangkok. It now plans to target Africa to increase its footprint in global banking business.

Today, the bank has 41 independent branches and 20 overseas branches in collaboration with local players.

Focussing on the bank's Gujarat operations, the chairman announced a 10-point programme to expand its base in the state with more branches coming up in central Gujarat and Saurashtra regions.

Bank of Baroda had unified the state that increased operations by 7 per cent earlier this year under the Project Parivartan, the bank's revitalisation plan. Inspired by it, the bank has united the eastern and western zones of Uttar Pradesh on July 2.

The bank has achieved a turnover of Rs 208,537 crore for FY 2006-07. Retail Credit has grown at 46.42 per cent and deposits grew by 33.37 per cent, touching Rs 124,916 crore.