Indian bank predicts bright future
The Bank of Baroda predicts a strong performance over the next 12 months.
New Zealand’s first Indian bank is doing very well, thank you, and it has plans to do even better, with a projection of $NZ50 million in profit at the end of the next 12 months.
That was the dominant message from Bank of Baroda executives during this morning’s inauguration ceremony.
A traditional Sanskrit mantra was followed by a Maori blessing of the premises, before a ceremony in the basement of the Dominion Rd, Mt Roskill, Auckland, branch.
Much focus was placed on the bank’s global successes – overseas offices in 26 countries, its annual growth rate of 25-30% despite the recession, international profits which contributed 25% of their overall revenue for the previous year.
However, its current Auckland customer base of around 1100 since the soft launch last June is still only a small portion of Auckland’s Indian population - just under 30,000 in the central city area, according to the 2006 census.
This was acknowledged in the speeches made during the ceremony, with each finishing with a request for continued support from those present.
Indian managing director Mangalore Mallya told the NBR exponential growth was predicted for the bank’s nationwide customer base.
“The Indian diaspora is one sector we will be focusing on,” he said.
Services such as a same-day transfer of funds to Indian banks would be targeted to this market. Expansion beyond Indian people is also intended. Mr Mallya thought housing and small to medium enterprises were markets in which they could be especially competitive.
Queried about their entrance into the potentially over-banked New Zealand marketplace, Mr Mallya said there was a space for the Bank of Baroda to create a niche for itself among banks already operating in the New Zealand market.
“Over the last six months we have been doing operations here, it gives me courage to say that we are going to stay here, and we are going to expand our base here, and we are going to increase our network here, and we are going to do very well here.”
Future intentions for branches in South Auckland and Wellington were mentioned, but no firm dates were given.
Charlotte Woodfield
Fri, 04 Feb 2011
Fri, 04 Feb 2011
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Indian bank predicts bright future
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