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Dr. Anil K. Khandelwal, CMD, Bank of Baroda (right), and Mr Balu Doraisamy, Managing Director, Hewlett-Packard India, at a press conference in Mumbai on Friday. - - Shashi Ashiwal

Mumbai , April 15

BANK of Baroda (BoB) is close to roping in a third partner for its proposed life insurance business shortly.

The bank has already tied up with Oriental Bank of Commerce as its local partner and is in advanced negotiations with a foreign company for the joint venture, said Dr Anil K. Khandelwal, Chairman and Managing Director, on the sidelines of a news conference today to announce the bank's tie-up with Hewlett-Packard as its strategic IT partner.

BoB's insurance venture has been in the backburner for the past couple of years, as the Reserve Bank of India was understood to have had reservations on allowing the bank to own 74 per cent stake in the joint venture.

Mr Khandelwal said that the bank will own majority stake in the three-way joint venture, which is expected to be finalised in another 3-4 month.

Commenting on the bank's performance, Dr Khandelwal said that the bank has seen a growth of 20 per cent in its advances during 2004-05 and is expecting a growth of around 25 per cent in the current fiscal.

"Last year, deposits and advances grew by 16 per cent and we intend to grow deposits by 25 per cent and advances by 20 per cent in this fiscal."

BOB also plans to tap the domestic equity markets with a public issue of 7.1 crore shares by July this year.

The bank expects to raise around Rs 1,500 crore with this offer. Post-issue, the Government holding in the bank will come down to 53.7 per cent from 66.8 per cent currently.

Bank of Baroda has tied up with HP as its strategic partner for its technology-enabled Business Transformation Project'.

With the tie-up, the bank proposes to deploy a single solution across the globe.

This will be done in two phases. In the first, 664 branches of the bank covering 80 per cent of the bank's business will be brought under core banking solutions by March 2007. By March 2010, 1,315 branches will be added.

HP will implement and manage for the bank an enterprise-wide service-oriented architecture including core banking, phone banking, Internet banking, delivery channel integration, risk and performance management, customer relationship management, data warehousing, global treasury, human resources management system (HRMS), cheque truncation system and more.

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