BoB to set up low-cost rural ATMs

The Bank of Baroda is planning to set up low-cost ATMs in rural areas in the country in association with the Indian Institute of Technology (IIT), Chennai.

Speaking on the sidelines of a press conference organised in connection with its follow-on issue, J K Chandar, general manager with Bank of Baroda, said, "The main objective behind setting up low-cost ATMs in the rural areas is to enable spread of technology. IIT-Chennai is pioneering this initiative and we will be partnering with them for the purpose. We plan to launch these ATMs some time later this year."

According to Chandar, such low-cost ATMs would come at a price of around Rs 60,000 as compared to Rs 3-5 lakh for an ordinary ATM.

"Some of the ATMs will also have Wi-Fi technology," he added. Chandar, however, said that the scope of this project and the investment were yet to be finalised.

With regard to the bank's life insurance foray, Chandar said that it was likely to happen in 2006-07.

"Many foreign entities have been in discussions with us. We have not yet settled the deal with anyone. We may even include a third party to meet the capital requirements," he added.

The bank is also looking at foraying into stock broking.

The Bank of Baroda is entering the capital market with a follow-on issue of 71 million equity shares of Rs 10 each for cash at a premium to be decided through the book-building process.

Post-issue, the government's shareholding will be down to 53.81 per cent from 66.83 per cent at present. The issue opens on January 16, 2006, and closes on January 20, 2006.