In a bid to check attrition among the bank staffers, Bank of Baroda (BoB), one of the top five public sector banks, plans to put in place a firm succession plan along with other incentives.
Speaking to FE exclusively, BoB?s new chairman & managing director, MD Mallya said, ?An entire succession plan would help us cope with the problem though I agree that attrition is matter of a concern with the public sector banks, particularly in some of the speciality areas.? The bank is open to Idea of giving incentives more than the existing banking standard for the deserving officials, he said. The bank would focus on ensuring that the cost of funds remains intact in the present circumstances, said Mallya.
?Our focus will be on retail deposits and the low cost current and savings account (CASA) deposits,? he added. Secondly, the bank would focus on growth in both the fronts-international as well as domestic. ?We will maintain BoB?s status as ?India?s international bank? for the bank,? he said.
The bank would soon open 10 more international branches during the current fiscal. Mallya is positive about the consolidation in the banking sector. Soon Mallya will be meeting all the regional heads of the bank to put forward his agenda before them.
?I believe in gaining both qualitative as well as quantitative growths of the bank,? he said. BoB is watching the rate scenario and would not increase the lending rates for now. It was despite the fact that pressure was there on the margins of the banks particularly after the raising of the cash reserve ratio (CRR) by the Reserve Bank of India (RBI) upto 75 basis points in recent past, he said.
According to him there is enough liquidity in the system, ?I believe that competition must be there in any sector including banking and public sector banks are blessed with their own strengths,?? he said.
Mallya has advocated fulfilling customers? requirement through three ways- service, delivery and finally technology with mind. ?Technology will be there but all it needed was a human touch,? added Mallya.