BoM forays retail banking; eyes fee-based services

Bank of Maharashtra (BoM) has forayed into the booming retail banking business.

The Pune-based bank has created a separate retail credit department and appointed one of its senior officials, Vinod N Dalvi, as general manager in-charge of retail credit.

The bank plans to increase the share of retail credit to 21% of total advances by end-FY07 from 13% at end-March 2006. BoM's total advances as on March 31, 2006 stood at Rs 16,469.72 crore.

BoM has already started distributing life insurance policies of Life Insurance Corporation of India (LIC) and general insurance products of United India Insurance Company.

The bank expects these initiatives to support its efforts at expanding its retail credit business. It has identified 38 centres in regions and locations where it has meagre presence and these areas would get preference in the bank's branch expansion plans.

The bank is also making efforts to increase focus on fee-based services and as part of the plan, would soon start selling mutual fund products. The bank is in talks with 'three leading mutual funds' for distribution of their products, M D Mallya, chairman of the bank, said.

The bank is on course to implement core banking solution and 100 key branches will be brought in the ambit of CBS by end-FY07, Mallya said.

Mallya said the bank has identified 38 centres in regions and locations where it has a less significant presence and these areas would get preference in the bank's branch expansion plans.