BoB’s Hyderabad Zone to emerge as top performer, says Zonal Head
Public sector bank keen to serve priority sectors and startups, says new Zonal Head, Man Mohan Gupta
Hyderabad: Bank of Baroda had been playing a key role in the Indian banking sector, providing credit and ensuring financial inclusion to the underserved segments.
Man Mohan Gupta, GM and Zonal Head (Telangana & AP), Bank of Baroda who took charge of the Zone recently, tells Y V Phani Raj, the priorities for the Zone and the difference the bank wants to make in the banking sector. Excerpts
Operational footprint
Pan-India, Bank of Baroda has about 9,000 branches. Out of these, Hyderabad Zone has about 430 branches post-amalgamation (up from 211 before amalgamation). Hyderabad Zone covers both Telangana and AP region, with a network of 570 ATMs including 72 cash recyclers. In this Zone, the bank serves 50 lakh customers, including 43 lakh depositors and seven lakh borrowers.
Zonal performance
Hyderabad Zone has been contributing significantly to the bank’s operations, nationally. As a new Zonal Head, my aim is to make Hyderabad the top performing zone in the south. Due to Covid, deposits have remained flat but savings are increasing.
In order to tap the current account holders, the bank has rolled out a scheme where up to Rs 10 lakhs of loans can be given to help strengthen their businesses. The bank’s business too is set to grow in the coming days as the economy recovers.
Bank amalgamation
Amalgamation had been a significant move. Every bank had its own strength. Dena Bank had a good Current Account Savings Account (CASA) ratio and Vijaya Bank had a good presence in the south. The amalgamation is helping Bank of Baroda to offer a basket of offerings to its customers, meeting their range of needs and expectations.
Sector lending
Bank of Baroda has been very aggressive in retail products. There is 20 per cent growth in this category. For the festive season, the bank has come out with attractive car and home loans. New housing loan campaigns will be rolled out from December 1 to 15, with an aim to sanction 1,000 home loans.
Also, in Hyderabad Zone, the bank has set up a one-stop SME branch to facilitate lending (from sourcing of proposals to disbursement), in addition to five SME loan factories, which exclusively serve the needs of the SMEs, in fast-track mode. To support all types of borrowers, the bank has also opened 106 ‘Gold Loan Shoppes’.
Credit support
Under the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs, the Hyderabad Zone has sanctioned Rs 360 crore to 15,000 MSME borrowers, benefiting businesses that are impacted by Covid pandemic. On the retail loan front, moratorium has been extended to the borrowers as per the RBI directive, to reduce the impact of Covid.
New initiatives
The Hyderabad Zone has set up a dedicated startup branch in Hyderabad and expects more startups to be benefited by the end of 2020. The bank is taking efforts to roll out digital products and improve digital footprint. The bank is fast-tracking MSME loans using artificial intelligence so that customers are given in principle approvals for loans in just 59 minutes. The Zone also sees more opportunities to serve the pharmaceutical sector.
Rural financing
Hyderabad Zone has been bringing tailor-made products to improve the credit access to meet the needs of borrowers across agriculture, poultry and fisheries. Agro-based infrastructure development such as warehouses is also being actively supported.
Managing NPAs
Bank of Baroda has already begun restructuring the MSME accounts that are under stress. In the case of retail accounts, restructuring is aimed at reducing NPAs, yet supports borrowers. The bank has been going selectively on all big ticket loans while lending stressed sectors such as power, mining and infrastructure.
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