Shenoy in Calcutta on Wednesday. A Telegraph picture

Calcutta, May 5: Bank of Baroda has decided to float a stock broking arm with an equity capital of Rs 100 crore.

The bank is scouting for a joint venture partner for the arm and is in talks with three to four parties, said chairman and managing director P. S. Shenoy. “It will take another six months to give a final shape to the company,” he added.

The bank already has four subsidiaries — BoB Housing Finance, BoB Asset Management Company, BoBcards and BoB Capital Markets. “This will be our fifth subsidiary,” said Shenoy. The subsidiaries together contribute Rs 25 crore to the bank’s overall business.

The bank, however, has shelved its plans to enter into the life insurance business for the time being.

“At the moment, we have no plans to enter into the life insurance sector with a separate company. We will work as corporate agents under the bancassurance formula for life and non-life companies. Once we gather enough experience we will think about our own insurance venture,” Shenoy said.

The bank has drawn up plans to tap the international markets in a big way. It is already present in 18 countries.

The bank has firmed up plans to open representative offices in Tanzania, Malaysia and South China, and an offshore branch in Singapore.

“Currently, the international branches contribute Rs 200 crore to our overall profitability. We want to increase it by another 50 per cent,” Shenoy added.

On the financial performance of the bank in 2003-04, Shenoy said the results are being audited. “But we expect a 35 per cent growth in our net profit over Rs 772 crore in 2002-03. In the current year, we have set a target of achieving a 20-25 per cent growth in profit.”

Fresh acquisition

Bank of Baroda is open to the idea of fresh acquisition of banks. “In principle, we are open to acquisitions as part of the consolidation of the entire banking industry,” Shenoy said.