Bank of Baroda expects to recruit 4,000 employees in the next couple of months. Clerical and officer level staff will be hired in equal number. The bank added 3,500 new employees during the current financial year taking its employee base to 40,000.
Mr M. D. Mallya, Chairman and Managing Director, Bank of Baroda, told Business Line that in the last three years the bank has more than doubled its total business. The bank expects to close the current financial year with Rs 5.25 lakh crore of total business. The new recruitment would be to support the bank's business growth.
Bank of Baroda is in the list of banks that the Government has promised equity funds to. The bank is to get Rs 3,280 crore, as the Government will be issued 3.23 crore shares at a premium of Rs 892 a share.
The equity infusion will take Government's share up by five percentage points, to 58 per cent. On Friday, Bank of Baroda's share on the Bombay Stock Exchange closed at Rs 927.50, up by 2.49 per cent from the previous day's close.
The improved equity base will allow the bank to leverage better. Bank of Baroda will focus on expanding credit to small and medium enterprises, mid-sized corporates and retail loans. As many as 15 dedicated branches are to be set up to cater to the needs of mid-sized corporates, of turnover between Rs 150 crore and Rs 500 crore.
Rate hike
Asked about the impact of the recent hike of 25 basis points in short-term lending and borrowing rates by Reserve Bank of India, Mr Mallya said that the bank had factored in the rates earlier so it may not be reflected in an impending rise in the base rate.
Our attempt is to keep costs low, so that we would be able to lend at competitive rates, he said. Therefore the bank does not focus and depend on bulk deposits. It does not mean the bank does not offer attractive rates on its deposits, but we ensure that the cost of deposit does not go beyond five per cent, he added.