This will help it compete more efficiently with the agile non-banking finance companies, which have so far dominated the lending segment.
A centralized processing center is operating in Gujarat GIFT City, which in turn supports the technology behind the entire gamut of trade finance operations offered to customers who are otherwise bankable than larger companies. Pay more to get services.
“We want to groom small and medium corporates and help them grow into large corporates,” said Subrat Kumar, Chief General Manager and Head-Mid Corporate, Bank of Baroda. “If you stand firmly behind them as we move to the next level of development, we can become lifelong bankers.”
“The aim is to build a comprehensive relationship over the lifecycle of the company – from MSME to mid-corporate to a large corporate,” he said.
This move will help in reducing the turnaround time to around two weeks. Also, a cluster approach keeps records of their businesses, which are helpful in evaluating their creditworthiness over time.
The bank has also introduced a digital app where customers including small, medium sized and large corporates can avail trade finance services digitally.
It has launched a dedicated loan extension strategy to ensure quick disbursement time for medium corporates with limited asset quality risk. Companies requiring funding of up to Rs 250 crore by a public sector lender are classified as mid corporate.
Those clusters are spread over four regions including North, South. East And west, More than two dozen dedicated mid-corporate branches will function under the cluster which will serve the borrowers and will be a one stop solution for all their banking needs.
“It will pay dividends over a period of time, he said.
The bank is also augmenting human resources to further its objectives.
Recruitment of 325 Relationship Managers and Credit Analysts with specialized skills is under process, who will work with Corporate Clients.
“We are looking to grow our mid-corporate book in double digits this financial year and our borrowers are also likely to grow significantly,” Kumar said.
Bank of Baroda’s corporate loan book grew by over 17 per cent year-on-year in the June quarter of FY13.
“The capex cycle is turning and interest rates are returning to normal, which will give further impetus to the segment,” the chief general manager said.
“In this backdrop we do not want to miss the bus and are aiming to grow our corporate loan book.”
The Bank sees opportunities in the infrastructure sector including roads, warehouses and renewable energy. In addition, steel, cement, chemical and real estate businesses are also opening up new opportunities for increasing credit.