Bank of Baroda hopes to grow its business 19-20 per cent during the current financial year. This is despite that the demand for credit is likely to remain subdued for some more time to come as a result of the current economic slowdown.

Notwithstanding the ups and downs, the bank has been growing on an average by 27 per cent every year.

“From 2005, we have been doubling our total business every three years,” said M.D. Mallya, Chairman and Managing Director of the bank.

BoB closed the year 2011-12 with the total business size of Rs 6.72 lakh crore, and it managed to maintain 20 per cent return on equity.

He said, as liquidity is not an issue, he expects the credit offtake to grow at least by 18-19 per cent this year. As on March 31, 2012, the bank’s total credit stood at Rs 2.3 lakh crore.

Though the current economic condition will have an impact on the bank’s asset quality, he hopes to contain the incremental delinquency rate at 1.3–1.4 per cent.

According to him, the bank’s restructured loan portfolio stands at Rs 780 crore, with no single industry segment accounting for any significant portion of it.

The “well capitalised bank”, which has 4,000 branches nationally, is planning to add another 500 in the current financial year. Besides, it has 96 branches in 25 countries. This will also be expanded with four new branches planned in the immediate future — two in Dubai, and one each in Kenya and Uganda.

“We have also procured licence to set up a branch in Sydney in Australia, and we will open our branch there in the next one month,” said Mallya.

To man these proposed new branches, the bank intends to hire 4,000 people this year. “From 2013-14, we may have to recruit at least 5,500 people every year for three years,” he said. 

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