Bank of Baroda looks for high growth

New Zealand Subsidiary to open first branch in Auckland

India’s third largest nationalised bank is keen to tap into the vast business potential in New Zealand, offering a wide range of services to businesses and individuals, connecting them to its extensive domestic network in India and offices and subsidiaries in more than 70 countries, a top official said.

Bank of Baroda (BoB) will become the first Indian bank to establish its presence in this country when it opens its first branch in Auckland in December or January.

Officials of the bank in Mumbai are currently evaluating the available options and a decision on the location will be announced next week.

Reserve Bank of New Zealand cleared the application for a licence by Bank of Baroda New Zealand Limited, a subsidiary established to oversee its operations in New Zealand and set up branches throughout the country.

Labour MP Dr Rajen Prasad, Waitakere City Council Chief Executive Vijaya Vaidyanath and Satish Chander Vermani and Bank of Baroda Chairman and Managing Director Mangalore Devadas Mallya are Directors on the board of the subsidiary company.

Mr Vermani, currently in Sydney at the Representative Office of the Bank will be the Managing Director of the subsidiary.

The Bank’s Mumbai based Executive Director Rajiv Kumar Bakshi was in Auckland last week to have an informal meeting with the local board of directors and attend a reception hosted for prominent businesspersons in the city.

He described the establishment of the subsidiary and the forthcoming first branch as an important development in the 101-year history of the Bank.

“While we have been in Fiji for almost 50 years, it has taken a while to establish a presence in New Zealand. We are confident of attracting customers with quality products and services,” he told Indian Newslink during an interview.

He said the first branch in Mt Roskill, Auckland, will provide almost all corporate, retail and private banking services including trade finance, loans, foreign exchange transactions and remittances.

“Our focus would be to serve not only the Indian community but all businesses and ethnic groups. We are an international banking institution,” he said.

Mr Vermani said the bank will be a strong competitor to other well established banks in New Zealand, aiming to offer customers ‘best products and services.’

“State-of-the-art products and services such as ATM Cards and Internet Banking will be available from the day of opening,” he said.

He said the first branch would have a complement of up to 12 staff, four of who will be posted from the BoB offices and branches network.

“We plan to recruit the remaining staff locally, applying our criteria for recruitment. This would be done after we finalise the location,” he said.

Mr Bakshi said students arriving from India to pursue their education in New Zealand would have the advantage of their loans processed in India.

“As well as quick disbursal of loan amounts, remittances to the accounts of BoB customers in New Zealand from India and other parts of the world where we have branches and offices would be almost instant,” he said.

Ms Vaidyanath said the presence of BoB would strengthen trade ties between New Zealand and India and enhance bilateral relations.

“BoB has been a trend-setter in the Indian banking industry and brings to New Zealand its decades of experience in India and elsewhere.

“With its vast resources and Capital Adequacy Ratio, the Bank will inspire confidence among businesses and communities in New Zealand,” she said.

Education, Trade and Technical Services NZ Inc President Satish Sharma said the Bank will play a major role in facilitating businesses keen on dealing with India.

“I am also confident that ETTA NZ could play an important role to be a partner with BoB in complimenting it efforts,” he said.