Bank of Baroda to open six mid-corporate branches in FY24

Bank of Baroda (BoB) It plans to open six mid-corporate branches across the country in fiscal ’24 as part of its strategy to focus more on advancing mid-corporate businesses.

the public sector bank Opening 15 Mediterranean branches of companies in the fiscal year 23 for the rapid processing of corporate proposals and taking advantage of the opportunities available in this sector, according to the latest annual report of the bank.

Medium branches of companies usually cater to corporate loan requirements of up to Rs 100 crore.

The bank now has four medium clusters of companies strategically located – New Delhi (North), Chennai (South), Mumbai (West), and Kolkata (East).

corporate credit portfolio

The BoB’s corporate credit is serviced by 30 specialized corporate financial services (CFS) and mid-tier corporate (MCB) branches, which manage approximately 90 percent of the bank’s total standard corporate credit portfolio.

The bank’s corporate credit portfolio increased to ₹3,40,408 crore on 31st March 2023, up 13.2 per cent from 31st March 2022, at the level of ₹3,00,693 crore.

“The corporate sector, which experienced relatively tepid growth in the previous year, has also recovered smartly with a growth of 13.2 per cent, driven by the big push from the government, improved capacity and utilization of working capital,” said Sanjeev Chadha, Managing Director. and CEO

The bank said it is focusing on total return from the customer rather than interest income by offering additional services such as supply chain financing, value chain financing, cash management service (CMS) facilities and other retail products.

With a renewed approach towards extending corporate credit, the portfolio risk profile (for domestic advances of Rs.50 crore and above) improved during FY23, with companies rated ‘A’ and above, accounting for 86 per cent of the total portfolio in FY23 vs. 78 percent on the previous year, according to the report.

Bank of Baroda (BoB) It opened 73 new local branches and merged 41 branches with existing branches during the fiscal year 2023, bringing the total local branch network to 8,200 at the end of March 2023.