The bank aims to increase its assets under management (AUM) to over ₹85,000 crore over the next five years by cross-selling to around 2,50,000 wealthy customers, which is currently ₹30,000 crore, who already have it with them. eat.
In addition, there’s a new wealth management workspace in the pipeline. United Arab Emirates (UAE), where the bank will serve the rich immigrants of that country, said Virendra SomvanshiHead, Wealth Management, Bank of Baroda.
“Over the years, we have ranked products, human resources and technology in the top 30 cities India, We expect to be among the top 10 revenue earners from mutual fund sales and the top four banks in life insurance sales in the current financial year, Somvanshi said.
The bank earned ₹315 crore from wealth management business in 2021-22 and is expected to cross ₹1,000 crore mark in 2023-24.
Bank of Baroda is a small player in this segment, where large private sector banks like axis Bank And HDFC bank Each has an AUM of around ₹90,000 crore and is operated by the state. state Bank of India Manages assets of an estimated ₹1.3 lakh crore.
However, Bank of Baroda has enough untapped wealthy customers, who have deep ties with the bank, that can be further developed, Somvanshi said.
The bank has identified 2,50,000 accounts, of which ₹30 lakh in single accounts or ₹50 lakh in multiple family accounts. Most of these accounts are in the top 30 cities but the bank wants to tap individuals outside these centers as well. It plans to bring these accounts into its money business, Baroda Radians,
Somvanshi said the bank plans to hire 350 experienced relationship managers and 500 other executives, who will be trained to acquire new customers and take over as relationship managers in future. These hires will join the team of over 400 executives of the bank at present.
“If India touches the $5 trillion mark in GDP, the affluent and wealthy population is going to increase. For a public sector bank like ours, it is a one sitting one with huge potential without the need for additional capital or risk. The business is NPA (Non-Performing Assets),” Somvanshi said.
Bank of Baroda will also manage wealthy customers from outside the top 30 cities through a relationship hub Mumbai Who will guide the officers in the branches of the bank in small towns.