Shifting stance from being defensive to push for growth, public sector Bank Baroda has dubbed its business policy for 2014-15 as “Race ahead”.
In 2013-14 S S Mundra, as its new chairman and managing director, had trained gun on consolidation and capacity building with motto “Back to Basics”.
At start of 2013-14, BOB’s focus centered to become Ten Trillion Bank (TTB) – Rs 10,00,000 crore — in terms of global business at the end of March 2014. It had articulated vision to commence a journey from being “Good to Great” by registering a strong performance and sustaining it year after year.
Reviewing performance for Fy14, Mundra said Bank achieved a global business performance – deposits plus advances of Rs 9, 75, 000 crore by March 2014. BOB’s business in FY14 expanded by 20-21%, about 4-5% over growth clocked by banking industry in country.
It, however, deliberately shed high cost time deposits of over Rs 30,000 crore during the reporting year (FY14) to preserve strength of balance sheet. It was a conscious trade off with TTB mark.
Mundra said bank’s share of low cost deposits — savings accounts and current accounts — rose from 30.38% to 31.74% at end of March 2014. The share of retail deposits increased from 45.42% to 52.42%.
Lot has been done on capacity building in FY14. There was also improvement in topline and bottom-line in 2013-14. He, however, did not dwell in detail on financial performance as bank was yet to announce audited results. Bank created three new verticals — for resource mobilization, learning under chief learning officer and Government Business in Delhi.
After slow growth in FY13 and FY14, Indian economy may show some “turnaround” in the current year, reflecting effects of slew of steps to clear stalled projects.
Setting sight for financial year 2014-15, BOB is looking at growing to total business of Rs 12, 00,000 crore by March 2015 with network comprising 5,400 branches and 8,000 ATMs. Staying top on improving asset quality, Public sector lender has targeted recovery and upgradation of Rs 3,500 crore in FY15.