The Hindu Business Line : BoB on global expansion drive

Although the PD is being set up mainly to comply with the regulatory requirements of that country, the bank feels that it can use its expertise to also generate profits from its operations there.

"As per regulations BoB has to buy some debt securities in Mauritius which can be routed only through a PD. So we thought of setting up one, where we can also use our expertise in those markets," said Mr P.S. Shenoy, Chairman and Managing Director, Bank of Baroda.

The PD will participate in local debt raising functions in the Mauritian markets, engage in underwriting activities and deal in Government bonds. BoB has recently obtained the Reserve Bank of India's nod to go ahead with the setting up of the PD in Mauritius. The central bank has also okayed the bank's plans to set up a full-fledged branch in Hong Kong, where it currently has a deposit taking subsidiary.

BoB has also got the apex bank's approvals to set up branches in Leicester - United Kingdom, Jebel Ali - UAE and Dhaka. The bank's board has also approved the setting up of subsidiaries in Canada, New Zealand and Trinidad and Tobago, and branches in Maldives, Malaysia and Sri Lanka. The applications will shortly be filed with the Reserve Bank of India, Mr Shenoy said.

"We have around Rs 800 crore worth of capital remitted to our foreign operations. On which, we are earning around Rs 225 crore a year. This year we expect the operating profits from global operations to be around Rs 250 crore," he said.

"With the new WTO regime coming in we see a lot of business opportunities. We want to be present wherever the opportunities will emerge, even with representative offices to start with if necessary," said Mr Shenoy.

Currently, BoB has around 57 offices in 19 countries. Plans are underway to take the number to 70 offices in a couple of year's time, he said.