Bank Of Baroda Risk Control Plan In Offing

A comprehensive risk-management system, covering credit, interest rate, market and operational risk is also in the anvil.

As part of its technological upgradation plans, the bank has earmarked over Rs 500 crore as investment, bank officials said. The first phase, at an estimated cost of Rs 250 crore, has already been kicked off. BoB officials said that by March-end, 1,000 of its branches will be fully computerised.

The bank has also evolved strategies for improving operational efficiency through organisational restructuring, merger or relocation of nearly 100 unviable branches, extending business hours and manpower planning.

Announcing the bank's strategies in Kochi, chairman and managing director P S Shenoy said the bank BoB will shortly finalise a five-year plan -- Vision 2005 -- which will provide a clear direction for the bank to pursue its long-term objectives and emerge as a global player in the industry.

 

The CMD said the bank has crossed the Rs 1,000-crore mark in operating profit at Rs 1,051 crore and Rs 500 crore in net profit at Rs 502.77 crore during 1999-2000. The bank has recommended a record dividend of 40 per cent for the period, he said.

BoB's global business during the period stood at Rs 75,700 crore, involving total global deposits of Rs 51,308.18 crore and advances of Rs 24,392.91 crore.

Officials said the bank expects a growth of 20 per cent in its business with operating profit expected to touch Rs 1,500 crore and a net profit of Rs 750 crore, this fiscal.

During the first quarter ended June 30 2000, its global deposits increased to Rs 51,450 crore, showing a growth of 16 per cent.

The bank also plans to open more branches in Kerala with a view to spread its activities. The bank, with 43 branches at present, is poised to open seven more this fiscal.

The bank's total deposits from Kerala stood at Rs 900 crore and advances at Rs 300 crore. The per employee productivity of the bank's branches in the state is the highest in the country at Rs 1.7 crore as against the national average of Rs 1.1 crore.