Indian bank forecasts robust growth
Bank of Baroda formal opening this week
Notwithstanding the tight money market conditions, Bank of Baroda is confident of registering higher levels of growth and profitability in every centre of its operations, including New Zealand, the Bank’s Chairman & Managing Director Mangalore Devadas Mallya said.
He said customer focus would remain strong at the core of all activities, bringing to this country the best of the Bank’s products, services and personnel.
Mr Mallya will be in Auckland later this week along with India’s Minister of State for Finance Namo Narain Meena and other officials to formally inaugurate the first branch of the Bank located at 114 Dominion Road in Mt Eden.
The launch will be followed by a reception for invited guests at Langham Hotel in the evening.
Bank of Baroda (NZ) Limited, a wholly owned subsidiary of the Bank will manage the branch and consider plans for expansion.
Mr Mallya said the high potential for increase in two-way trade, and the rising awareness of New Zealand’s status as an important business and tourist destination were encouraging signs for closer and more constructive engagement.
“Bank of Baroda has entered this important market at a time when there is positive talk about a Free Trade Agreement and visible efforts to improve two-way trade and commerce,” he said, speaking to Indian Newslink from Mumbai.
He said New Zealanders will receive quality, friendly and efficient service as customers of the Bank.
“They will experience the state-of-the-art technology, combined with traditional and personalised service and an extensive range of products and services, some of which are unique to Bank of Baroda,” he said.
He said while products and processes could be specifically developed for New Zealand in due course, the Bank will offer all conventional banking services, including current account, savings, premium savings, recurring deposit schemes and fixed deposit schemes for varied maturities.
“Customers seeking loans and advances after providing all relevant documents and completing the requisite formalities can expect a decision in less than ten working days. Some decisions could be taken locally to expedite service,” he said.
Higher growth, profits
Mr Mallya said the Bank’s performance in 2010 was gratifying, with increased productivity, profitability and growth in quality assets. He said the Bank posted 31% growth as at the end of December 2010 on a year-to-year basis. The total business written was more than $143.7 billion, up from about $109.20 billion as at the end of the previous year.
The total assets of the Bank’s overseas operations rose by 30.78 % from about $73.63 billion in December 2009 to about $96.30 billion at the end of December 2010. Net Profit showed an impressive increase of 36.95% to reach $867 million from $633 million during the same period.
“It is gratifying that the performance of the Bank, its quality service and strong customer focus were factors that made us qualify for the prestigious ‘Banker of the Year Award (India)’ presented by ‘The Banker’ of London and the ‘Best Bank 2010’ awarded by ‘Business India’ publication,” he said.
Mr Mallya said these developments augured well for the Bank’s entry into New Zealand and its close working relationship with cutomers.
“New Zealand has good business potential and we are hopeful of creating a niche for our products and services. Offices and branches of Indian corporates, large, medium and small enterprises established, managed, operated and franchised by people of Indian origin and other New Zealand businesses hold promising prospects for our maiden venture in New Zealand,” he said.