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BoB embarks on $120-mn IT modernisation plan

Suman Guha Mozumder
India Abroad Correspondent in New York

Bank of Baroda, one of India's leading banks, is embarking on a $120 million plan to modernise its information technology network to interconnect the bank's businesses throughout the world.

BoB chairman and managing director P S Shenoy, who is in New York as the head of a top management team that includes executive director A K Khandelwal and corporate functional heads, said that the delegation was scheduled to hold talks with Connecticut-based Gartner Consulting to formulate detailed IT technology strategies.

"Our team is here to take the bank to the new millennium," Shenoy said at a dinner-cum-reception on May 23 after the launch of the bank's Web site exclusively for North America.

"The modernisation will lead to 80 to 90 per cent of the bank's business being interconnected," he said, adding, "all foreign outfits will be integrated into the system."

BoB, which was established in 1908, has over 2,600 branches in India and 54 overseas offices in 16 countries.

Speaking to India Abroad later, Shenoy said the team was here to discuss the business strategy and the implementation part of it.

"We are giving it to a consultant to make it more customer friendly," he said. Shenoy said that there has been a perception that the IT initiative of public-sector banks needs to be changed in a very big way.

"So, the step we are taking is very significant for the banking industry to take Indian banks to world class standards."

He said that that the NRI component in BoB's business is very high, almost 20 per cent of the balance sheet, and that BoB would like to further increase it.

"BoB would like to expand rapidly in the US, opening branches in Texas and in California," he added.

Shenoy said when the plan is implemented, BoB will be on par with world-class banks.

"We are trying to establish connectivity. We have already established connectivity in 250 branches in India. Now it will be nationwide, in metropolitan and urban, and semi-urban areas," he said.

As a result of that, he said, "We will be offering anytime anywhere online banking."

Shenoy explained that customers will be able to operate anytime anywhere.

"Consequently, funds transfer, which is a major activity of the bank, will be online."

Asked why BoB chose to come to the US for IT modernization, when there is no dearth of IT consultants in India, Shenoy said, the Indian people who come to the US basically do software and do not do a total package.

"What we are aiming at is core-banking solution. No Indian consultant has the experience in managing such a massive network," he said.

"I think it will take time for Indian companies to do that kind of consultancy or to reach that world class level."

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