Bank Of India Set To Widen Branch Network

He said that personal banking offers relatively higher spread and low non performing assets and, thus, the bank plans to target it as profit centre.

However, in response to shareholders query, he replied that the bank currently has 105 loss-making branches, which are more in nature of unviable branches.

Krishnamurthy also announced plans of venturing into insurance. He said that this is aimed at increasing its product range and fee income by leveraging its existing strength of large branch network and skills in funds management. He said, "As and when new opportunities arises we propose to diversify." However he said the bank has yet not decided whether the bank will operate as service provider or pick up some equity on insurance venture.

 

The chairman indicated that bank plans to "further improve its efficiency and effectiveness by integrating its dealing rooms in all time zones and converting it into global treasury for more efficient funds management."

On international operations, Krishnamurthy said that Bank of India is in the process of developing new products and expanding its presence in new growth centres. The bank plans to capitalise on this strength by developing skills and products range in the spirit of truly international bank. As part of its business strategy, the bank plans to enhance correspondent banking relationship with local banks not having their offices abroad.

In the process of expanding depository services, He said that the bank will soon open six more depositary participant offices linked to the Central Depository Services Ltd at Mumbai, Ahmedabad, Bangalore, Calcutta, Chennai and Delhi.