Bank Of Baroda Converts Overseas Branches

The bank, through the recast of its international operations, hopes to maximise profits. The entire excise was undertaken last fiscal.

Meanwhile, BoB has acquired a two-third share holding in IBU International Finance which has been renamed as Bank of Baroda International Finance.

At the same time, the bank plans to expand the operations to Botswana and Tanzania through a joint venture with the Bank of India in Tanzania.

A host of new products and strategies suggested by international consultant for its American and European operations has been approved and is under implementation, said sources. The bank has opened a 'global syndication center' at London for this purpose.

 

The bank has appointed Arthur Andersen India Pvt Ltd as the consultant to establish a risk-management system as well as implementation of an asset liability management system (ALM).

Meanwhile, BoB has recovered a part of its non-performing loans (NPLs) through a recovery mechanism.

In 1999-2000, the bank's total recovery touched Rs 329 crore. Along with the recovery of loan, Rs 116 crore worth NPL was upgraded under the same period.

The bank has set up an asset classification and credit monitoring system which will enable BoB to track each loan account from the corporate office itself.

The infrastructure financing cell of the bank has sanctioned an amount of Rs 1,571 crore for 29 infrastructure units. Of this, the bank has already disbursed Rs 459 crore.

The bank's advances towards the priority and agriculture sector has increased by 19 per cent and 11 per cent last fiscal. BoB has helped to organise 6,390 self-help groups and revitalised 54 gram vikas kendras to ensure credit flows.

The bank has contributed towards national defence fund, prime minister's relief fund for Operation Kargil and fund cyclone victims of Orissa.

The total donations by the bank in 1999-2000 was Rs 3.62 crore in addition to its contribution of Rs 1.5 crore to the Prime Minister's Relief Fund.