BoM plans to add 150 new branches

The Pune-based Bank of Maharashtra (BoM) is now embarking on an image makeover, after stagnating for nearly three years and missing out on the boom in retail lending.

"We would engage in a brand-building exercise and have on board brand consultants to reposition the bank," said M D Mallya, chairman and managing director of BoM.

The public sector bank also plans to aggressively expand its branch network beyond Maharashtra to broadbase its business. In 2006-07, the bank would open 45 branches in various cities, including the suburbs of Delhi and Bangalore.

About 60 per cent of the bank's business accrues from over 900 branches in Maharashtra.

It plans to add about 150 branches in the medium term to its existing network of 1,340 branches.

The bank had lost its focus in the last 2-3 years and lagged behind its peers such as Andhra Bank, Corporation Bank, United Bank of India in business growth.

It was saddled with high-cost deposits and high incidence of non-performing assets.

Mallya said the bank should be able to get five references from each of its customers.

Even if 25 per cent of the references turn into customers, the bank's customer base would double.

BoM's net profit in 2005-06 had fallen to Rs 50.79 crore from Rs 177.12 crore a year earlier. Its total income in 2005-06 was down at Rs 2,526.69 crore (Rs 2,752.93 crore). In 2003-04, net profit was Rs 305 crore on a total income of Rs 2,669 crore.