Give us a year and we'll be a powerful, modern institution: P S Jayakumar

Interview with MD & CEO, Bank of Baroda

After reporting the largest ever quarterly loss in the sector, Bank of Baroda looks to be in a war zone. P S Jayakumar, managing director and chief executive officer, elaborates on the strategy to negotiate a trying time. Edited excerpts of a talk with Abhijit Lele:

The bank reported a huge loss for the third quarter as it had to make a large provision for bad loans. Is the clean-up over?

The worst is over. What is to be done is done (provisioning). We have put the issues behind and are working to move forward.

You face the risk of a skills void, as many experienced managers at the top are slated to retire over the next 12 months. How are you addressing this?

About 38 are expected to retire over 12 months. We are working on alternatives and also have a defensive plan. We can
retain some of the executives, who will enjoy administrative powers.

Has the bank appointed any head hunters or hiring firms to ensure wider response?

The web-based advertisements to seek talent met with limited response. We have now selected three top-rated hiring firms. They’d work with us and supplement the advertising, so we will be more successful in hiring persons with the skill and experience the bank is looking for.

More and more business is getting transacted through electronic channels.  What are the plans for restructuring and consolidating the branch network?

All activities related to corporate business are now centralised at 15 branches. These are now called corporate finance
centres and staffed with the best people. We have also created a product management structure. Retail banking has been further broken down to focus on cash delivery, cash pick-up and deposits. So, those involved will look at the product and on profitability.

While the bank has a strong brand name, what it is doing to stay relevant in changing times?

We have picked up HTA (an advertising services entity) for the rebranding assignment. We are also redoing branching to look better. They (branches) should entice you to walk in. There is a lot of focus on products and distribution at the head office. So, we now of the value that the head office brings to the field. People are not opposed to this kind of centralisation. It will flush out many activities from branches, giving time for value added work and devote more time for customer service.

Give us a year before things converge and you will have a very powerful and modern institution, with the latest technology.

There was talk about a medium-term plan. Where do you want to see bank three years hence?

We are creating a digital bank, with a combination of channels, product and profitability. We have picked up bright professionals and given them jobs at the general manager level.

The bank boasts of a wide network of branches abroad but there is a feeling that the potential has never been utilised.  What are the plans to exploit this capacity?

Bank is working on a strategy for international operations. It takes a lot of energy and time. We are looking at focused and better quality business in retail banking in Britian, where we have 14 branches. Overall, the bank will focus on local business done locally, the diaspora (non-resident Indians), cross-border trade and investments.