BoB on overseas expansion spree, to open 10 offices this year

New Delhi, May 10 (PTI) Undeterred by the global economic
slowdown, India's Bank of Baroda, the bank with the largest
overseas presence, Sunday said it is planning to open about 10
foreign branches in the current fiscal.

"We are planning to open about 9-10 overseas branches
during the year," Bank of Baroda Chairman and Managing
Director M D Mallya told PTI.

Overseas expansion plan includes opening of a subsidiary
in Malaysia, a branch at New Zealand, he said, adding,
regulatory approvals are being sought.

At present, the Mumbai-based bank has about 74 offices
spread across 25 countries.

The contribution of overseas business to the bank’s total
business was 22.5 per cent and to gross profit was 21.2 per
cent in 2008-09 despite a synchronised downturn in the world
economy, he said.

The bank, Mallya said, also plans to add another branch
in the UK, which will take its total number of branches in the
country to 10.

BoB is keen to increase the number of branches in African
nations like Kenya and Uganda, he said, adding, it is seeking
regulatory approval for opening four more branches in these
two nations.

The country's third largest public sector lender, BoB
also plans to expand its presence in Trinidad and Tobago for
which it is seeking approval.

"We also plan to open a full-service branch in
Australia," Mallya added.

Elaborating on Malaysian foray, he said BoB is the lead
partner with 40 per cent stake in the three-way joint venture,
while Indian Overseas Bank and Andhra Bank hold 30 per cent
stake each.

Malaysia has a huge growing economy but there is hardly
any presence of Indian banks there so it is a good opportunity
to go and start business in this country, he said. Currently,
BoB has a representative office in Malaysian capital Kuala
Lumpur.

Meanwhile, BoB has pipped Canara Bank in terms of net
profit and total business for the fiscal 2008-09 to become
India's third largest player.

BoB's net profit for 2008-09 stood at Rs 2,227 crore,
about Rs 155 crore higher than that of Canara Bank in FY 2009.

Bangalore-based Canara Bank's net profit grew by 32 per
cent to Rs 2,072 crore during the fiscal against Rs 1,565
crore in 2007-08.

At the same time, the total business of the BoB stood at
Rs 3,36,383 crore at the end of fiscal 2008-09, about Rs
11,000 higher than its closest competitor in the same fiscal.
PTI DP
AM