:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

GROWTH IN INTEREST INCOME LIFTS BANK OF BARODA NET 28%


A substantial growth in net interest income and prudent management of liabilities helped Bank of Baroda increase its net profit by 28 per cent to Rs 1,069 crore for the quarter ended December 31, 2010 from Rs 832 crore in the corresponding quarter last year.

Low dependence on bulk deposits and a cautious revision in term deposit rates, along with corresponding increase in lending rates, helped the bank maintain the net interest margin, said Mr M.D. Mallya, Chairman and Managing Director.

Unlike most of its peers, BoB has aligned its credit growth and deposit mobilisation. Its incremental credit-deposit ratio was at 76 per cent as against the industry average of over 100 per cent.

“We will maintain the momentum of resource mobilisation in the fourth quarter. We may need to raise deposits of about Rs 10,000 crore to meet the deposit growth target,'' Mr Mallya said.

The bank is looking at a deposit growth of 20-22 per cent and credit growth of 23-24 per cent in the current fiscal. Income from exchange transactions increased to Rs 147 crore (Rs 99 crore) and commission income increased to Rs 245 crore (Rs 221 crore).

Trading profits were lower at Rs 85 crore (Rs 139 crore), due to higher yields on government securities.

The share of low-cost Current and Savings Accounts (CASA) moderated slightly as higher interest rates on term deposits saw migration of funds from savings accounts to term deposits.

Going ahead, the bank will focus on corporate salary accounts, cross selling to existing customers and also make use of technology to shore up its CASA ratio, Mr Mallya said.

Branch expansion
The bank is also looking to add 250 branches to its network in the fourth quarter, which too would help in improving the CASA share.

In addition, about 1,200 branches in metro and urban centres will be converted into Baroda Next branches. These branches have been revamped to offer better service and sales to customers.

The bank is also setting up five more centralised hubs for retail liabilities in addition to the existing five, as part of its focus on retail business, the Chairman said.

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