The Hindu Business Line : BoB to recast Gujarat operations

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Bank of Baroda derives a fifth of its entire business from Gujarat.
To integrate its zonal offices at Ahmedabad, Vadodar and Surat at the Ahmedabad headquarters

Ahmedabad , Aug. 10

Bank of Baroda (BoB), which derives a fifth of its entire business from Gujarat, on Thursday announced revamping its operations in the State by integrating its zonal offices at Ahmedabad, Vadodara and Surat at the Ahmedabad headquarters.

Addressing a press conference, Mr G G Joshi, General Manager (Gujarat Operations), said BoB had also evolved a 10-point `Gujarat Strategy' to expand its business and reach in the State. The initiative was taken with the aim of improving the bank's market share in Gujarat from the current 20 per cent to 30 per cent by 2010 and also the cash-deposit (C-D) ratio.

`People avoid taking loans'

Replying to a question, he said the C-D ratio was low in Gujarat because of the huge deposits made by the Non-Resident Gujaratis (NRGs) and the tendency of the people to avoid taking loans. The fact that many Gujarat-based industries avail themselves of loans in Mumbai also contributed to the low C-D ratio. He said that 23 per cent of all remittances and deposits made by the Non-Resident Indians (NRIs) came to Gujarat.

BoB's total business in Gujarat was to the tune of around Rs 27,000 crore, including Rs 19,700 crore deposits and Rs 6,800 crore advances. The bank, founded by the erstwhile Maharaja of Baroda, Sir Sayajirao Gaekwad, 98 years ago, has now grown to 2,700 branches in India and 20 other countries. BoB had 25 per cent of its branches in Gujarat and three-fourths of them in rural and semi-urban areas, he said.

Of the 659 branches in Gujarat, 142 work from 0800 hrs to 2000 hrs and one each in Ahmedabad and Vadodara round-the-clock.

Mr Joshi said the Bank had also entered in tie-up arrangements with UTI Mutual Fund, HDFC Life insurance, Birla Sun-Life and National Insurance Company, among others, for sale of mutual fund and insurance products through its branches.

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