Bharat Overseas Bank Limited (BOBL) is planning to enter the capital market in September or October. BOBL, which enjoys a networth of about Rs 198 crore, is aiming to enhance it to Rs 300 crore by March 2006. | |
| "The bank will be coming out with an initial public offer (IPO) and our issue size will be around Rs 100 crore," G Krishna Murthy, chairman and chief executive officer, BOBL, told mediapersons here on Monday while inaugurating the bank's second branch at Madhavadara in Visakhapatnam. |
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| The bank has targeted to collect Rs 600 crore as new deposits during this fiscal, as compared to about Rs 400 crore during last fiscal. |
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| "In the current year, the bank is planning to add 20 new branches across the country. This will increase our deposits by Rs 600 crore," Murthy said. |
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| At present, BOBL's low-cost deposits are about 22 per cent. It is aiming to increase it to 25 per cent by the end of this fiscal. The bank is looking at increasing its branches in Andhra Pradesh too. |
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| "Currently, the bank has eight branches and these will be increased to 12 by the end of this fiscal," Murthy said, adding, "within two to three years, eight more branches will come up in the state." |
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| In 2004-05, the bank reduced its net NPA to 1.57 per cent from 2.26 per cent. It is aiming to reduce it further to 1.20 per cent by the end of March 2006. |
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| In terms of business volume, which at present is Rs 4,500 crore, the bank expects it to take it to Rs 5,200 crore by the end of this fiscal. And by March 2010, it is likely to touch Rs 12,000 crore, he said. BOBL will also focus on para banking activities which form around 6 per cent of the total revenue. |
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| "Our target is to increase it to 14 per cent over the next three years," Murthy said, adding, "the bank will soon commence distribution of mutual fund schemes and bonds, for which necessary infrastructure is in place." |
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