Bank of Baroda has decided to open 7 more units in Karnataka in the recent year (2008), and intends to have branches in all 29 districts of the state by the next two years (2010).

BoB’s CMD M D Mallya said that the bank plans to open branches in Haveri, Hospet, Karwar, Suratkal and 3 branches in Bangalore in 2008.

Moreover, the banking institution would focus on expansion in different segments including retail banking, SME and priority zone such as agriculture in the state and improve its CD ratio significantly.

He also said that the total business of the bank in the state stood at Rs 37,960 million.

Mr. Mallya also informed that 72% of the advances in the state was to the priority sector and retail credit constituted 40% of the advances.

He said the bank also decided to establish a composite loan factory for centralised processing of retail and SME loans in Mangalore to cover the city and branches nearby. The bank`s exposure to the agriculture was Rs 12 billion, of which Rs 2,820 million were NPAs and they would be dealt with according to the procedures set by the finance ministry with regard to the farm loan waiver.

About 20% of the business of the bank was through its global branches, and this contributed to one-third of the banks profit, Mallya informed and added that 10 more international branches would be opened in the present fiscal.

Bank of Baroda has presence in 25 countries with 71 overseas offices and one joint venture in Zambia.

Shares of the bank, on Friday (May 23), declined 1.09% to settle at Rs 285.3 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 186,145.