Financial Daily from THE HINDU group of publications
Tuesday, Aug 30, 2005
Financial Daily from THE HINDU group of publications Tuesday, Aug 30, 2005 |
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Money & Banking
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Credit Cards & Debit Cards BoB to strengthen credit card, asset management arms Our Bureau
Dr A.K. Khandelwal
Kolkata , Aug 29 BANK of Baroda is planning to fortify its credit card and asset management subsidiaries to turn them into stronger entities. It is also in an advanced stage of negotiations with National Housing Bank for acquiring the latter's stake in BoB Housing. BoB Cards, which traces its origin to the 1980s, is being reinforced. A steep business target has been set to increasethe card base. The card base now stands at 1.5 lakh. The credit card subsidiary, according to Dr Anil K. Khandelwal, CMD, has the potential to grow in the days ahead. Bank of Baroda now offers eight varieties of cards to customers. The bank will also start paying more attention to the asset management outfit, which currently has a small size - Rs 152 crore as on June 30. This makes it among the smallest players in the industry. As for the housing subsidiary, BoB plans to shortly buy out the 33-per cent stake held by National Housing Board. The company has a portfolio of about Rs 600 crore. A valuation has been worked out. BoB, which has a net NPA of 1.47 per cent, hopes to reduce it to less than 1 per cent by March, Dr Khandelwal said. The bank, which has a capital adequacy of 12.61 per cent, is now looking forward to a public issue, the details of which are being kept under wraps at the moment. The government's holding in the bank stands at 66 per cent. Internationally, BoB is looking at a wider network of offices, with the RBI's consent received for branches in countries such as Canada, New Zealand and Bangladesh. The bank currently has seven foreign subsidiaries. Global operations account for 14 per cent of the bank's business.
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