Date:21/07/2007 URL: http://www.thehindubusinessline.com/2007/07/21/stories/2007072150980600.htm

Back Bank of Baroda aims at 25-30% growth in net profit

Plans to launch operations in many African countries

Our Bureau

New Delhi, July 20 Bank of Baroda (BoB) expects a 25-30 per cent increase in net profit in the financial year 2007-08 on the back of increased contribution from overseas operations and better performance of domestic small and medium sectors.

“Our overseas operations will be an important growth driver this year. SMEs here are doing well and will be another growth driver. This year we expect our overseas operations to account for about 22 per cent of our total business turnover and about 35-40 per cent of our total net profit. Our aspiration is to have 25-30 per cent increase in overall net profit this fiscal,” Dr Anil Khandelwal, Chairman and Managing Director, told reporters here over a video conference on the eve of the 100th foundation day of the bank.

In fiscal 2006-07, the bank reported a net profit of Rs 1,026.46 crore on a total income of Rs 10,385.87 crore. Its overseas operations accounted for 20 per cent of the overall business turnover and about 35 per cent of total net profit.

Centenary year

In the centenary year, the bank has planned a host of initiatives including launch of operations in many African countries and also in Canada and New Zealand besides undertaking expansion of branch network within the country.

On July 20, which is the foundation day, BoB plans to open around 31 branches within the country.

Dr Khandelwal also said that Andhra Bank would pick up 30 per cent stake in the three-way life insurance joint venture with the UK-based Legal and General.

Bank of Baroda will take 44 per cent stake and Legal and General is expected to take 26 per cent stake in the venture. The MoU for this venture is likely to be signed in the coming weeks, he said.