Public sector lender Bank of Baroda is now targeting at least 65% of retail originations and 35% of MSME loans (value-wise) to be done digitally by the end of the current fiscal year.
This comes after overhauling its IT infrastructure to set up digital banking departments internally. The bank is also targeting Rs 50,000 crore of digital lending in the current fiscal year.
Akhil Handa, Chief Digital Officer, Bank of Baroda said, “We believe that this year we will disburse loans of over Rs 50,000 crore through our digital bank this year alone. This will be a combination of retail (home, auto, personal) loans and small ticket MSME loans. We have a substantial advantage over peer banks that are getting started with their digital journey.”
Handa added that at least Rs 35,000 crore- Rs 40,000 crore will come from lending to the retail sector, while the balance will be contributed by the MSME segment.
About 90% of all new retail accounts were done digitally. “About 65% of retail and 35% of MSME will be digital this year. Our thrust is on the personal loan product and looking at the present run rate that alone will help us reach our lending goal,” Handa said.
Last year, the bank rolled out a digital lending department that will digitize half of its Rs 6.4 lakh crore balance sheet, including retail, MSME, and agriculture.
Recently, the Bank launched ‘BOB World’, its all-new digital banking platform, which is aimed at providing an all-inclusive and seamless virtual banking experience.
Attribution-KNN
