Bank of Baroda (BoB) has determined to revamp its operating model, right from the manner it plans its branch channel to the services it offers to corporates. It intends to capitalize on its presence in international centers to boom its percentage in India’s international trade and relook its organizational structure in keeping with its digital lending initiative. BoB plans to reduce its cost-income ratio by at least 5-10% over the years and increase its footprint in the micro-lending phase. It also wants to set up a work-from-home policy and enhance the value of its subsidiaries.
The country’s third-largest public-sector bank (PSB) by assets is now seeking out consultants who will assist it perform this complete overhaul of its business processes. Regarding its recent amalgamation with Dena Bank and Vijaya Bank, BoB stated it’s far now in a good position to attract the synergies arising out of it. It can leverage its current talents and scale to service its current customers across the 3 erstwhile entities and also attain out to a wider set of customers. The lender has created a digital lending department to digitize customer journeys and provide quicker and customized loans to customers.
Simultaneously, it is also strengthening its digital delivery channels to provide seamless services to its clients. One way of doing this may be to place the bank’s mobile app as the centerpiece for consumer transactions and the primary delivery channel for a majority of products and services. Other key priority regions for the bank consist of a revamp of its corporate banking, international banking, and other businesses, expanding its reach through alternate formats, leveraging analytics to drive customized offerings for customers, and adopting new methods of working.
The consultant might be required to help the bank reimagine the branch via a branch transformation program, which will consist of centralization, digitization, and simplification. BoB plans to seize the entire corporate value chain, including areas such as cash management and advisory. It will additionally improve its tracking abilities, developing tools, and dashboards to reveal its corporate portfolio for risk-adjusted returns, compliance, and early-warning indicators on a real-time basis.
In micro, small and medium enterprises (MSME) lending, BoB will explore partnerships and alliances with a selected focus on co-lending. It will fine-tune and redesign strategies for reinforcing commercial vehicle/ construction equipment (CV/CE) lending.
BoB will examine the existing position in respect of its domestic subsidiaries and propose measures for unlocking value in all six — BOBCaps, Baroda Financial Services, Baroda AMC, Baroda Global Shared Services, Baroda Sun Technology, and Nainital Bank.
The bank will seek the consultant’s help in designing different work-from-home models for diverse job roles, which include security protocol, productivity and output matrices, work from home kit, etc. It will also be taking inputs for new products to enhance the bank’s net interest margins (NIMs) and spread the risks. This consists of recommendations on area-specific products and schemes.
Rayudu Durga Prasad