Relationships Beyond Banking

N Prasad, BOI Chief Executive in his office

"Bank of India (BoI) was the first Indian Bank to open a branch outside of India, in London, as early as 1946," Narendra Prasad, the Chief Executive of the Us operations of Bank of India says with pride. And today, the Bank has sizable presence abroad, with a network of 29 branches, including three representative offices at key banking and financial centers in London, New york, Paris, Tokyo, hong-Kong and singapore. The international business accounts for around 17.82% of Bank's total business.

opened in 1977, the bank's Us operations cover the san Francisco agency and the New york branch plus one branch in the Cayman Islands. Its Us operations, just like in other countries, are geared towards attracting businesses and facilitating investment in India and to enable Indians to invest in the United states.BoI strives to be "the bank of choice for corporate, medium businesses and up-market retail customers and to provide cost effective developmental banking for small business, mass market and rural markets," says Prasad.

"The fact remains that every businessman must have his eyes trained on India for, after all, it is the, fifth largest market in the world in terms of purchasing power parity." India is one of the world's most exciting emerging markets with extensive infrastructure for doing business.

With several branches abroad and many more to come, BoI wants to attract more NRIs. "The easiest way of opening an account would be to contact the nearest branch of Bank of India who would gladly assist in fulfilling the required formalities and opening an account. If Bank of India branch is away, then the required documents may be sent to the branch where account is desired to be opened," Prasad says.

NRIs may instruct their bankers to remit the amount directly by sWIFT to any of our Forex branches for onward credit to Bank of India's branch where the account is to be opened. A draft drawn on Mumbai or elsewhere may also be mailed to concerned branch which will be credited to the account on realization.

While the Us Banks have seen a steady downturn, Bank of India has been able to sustain its growth. In March 2009, for instance, BoI had $971million customer deposits, and in six months it grew to $1,067 million. The advances in March '09 were $1,260 million and it grew to $1,353 million during the same period.

Narendra Prasad was appointed Chief Executive of the Us branches a little more than a year ago. Prasad, who has a Master's Degree in Physics from Patna University, India, joined BoI in February 1974 as a probationary officer. he possesses vast knowledge/experience acquired over past 36 years in areas such as Agriculture, Microfinance, Corporate Credit, Forex, Management of Distress Assets, Business Planning & Manpower Planning, human Resource Management and Public Relations.

The Chief Executive in discussion with his NY team.

He acquired operational experience in above areas through assignments as a Branch Manager in the New Delhi, Bihar/jharkhand, Zonal Manager in Bihar, Chairman of a Regional Rural Bank at Lucknow in Uttar Pradesh, and as a part of the zonal management team in Chandigarh, West Bengal and Bihar. he also worked at BoI's establishments in London and at jersey (Channel Islands) in the U.K. in the late eighties.

In his long and fruitful career, Prasad has served as a Director on the Boards of various companies including, IL&Fs Investment Managers Ltd. (IIML), a subsidiary of Infrastructure Leasing & Financial services Ltd. (IL&Fs) and the Central Depository services Ltd. (CDsL), both in Mumbai.

His last assignment in India was at BoI's corporate headquarters in Mumbai as the General Manager of the Priority sector and as the General Manager of strategy & Planning. Currently, Prasad is the Chief Executive of BoI's U.s. operations in New york, controlling its New york Branch, san Francisco agency, and the Cayman Islands branch.

Bank of India was founded in 1906 by a group of eminent businessmen from Mumbai and was under private ownership and control until july 1969 when it was nationalized along with 13 other banks in India. Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakhs and 50 employees, it has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations. In business volume, the Bank occupies a premier position among the nationalized banks.   

Dealers at work at Bank of India's New York branch

The Bank has over 3,000 branches in India spread over all states/ union territories including 141 specialized branches. It came out with its maiden public issue in 1997 and follow on Qualified Institutions Placement in February 2008. . Total number of shareholders as of september 30, 2009 was 215,790.

Keeping in view the rich past experience and in tune with the Government of India/Reserve Bank of India guidelines, BoI is adopting innovative and growth oriented administrative policy measures. It has also been supporting the task of nation building by implementing varied polices/guidelines of the Government with clear objectives.

According to Prasad, focused attention is given to building a loyal band of customers in rural & semi-urban areas where BoI has more than 67% of its branch network. This has enabled development of individuals, a village or even the given area by increased production and productivity, through smooth flow of credit.

There is an incident that, he says, he cannot forget. During his tenure in Bihar, Prasad met a pickpocket while travelling by train. "I called him and asked him if he wanted to start a small business. his response was, ‘who would lend me money?' I gave him my business card and told him to come to my office and meet me. When he came the next day, I passed him a loan of Rs. 500 to start a tea shop. surprisingly, he repaid the loan ahead of time and got another loan to expand his business into a restaurant. And then in the course of time, it has grown into a successful business and provides employment to dozens of others. I feel so proud that a little support and encouragement from the Bank turned a pickpocket into a successful businessman."

Coming back to the present, Prasad outlines the numerous innovative schemes and products with defined objectives and refined methodology. "The Philosophy, concepts and various issues behind launch of our various new products and schemes are towards intensive financing in service area with a package of services to optimally utilize the resources at the command of the borrowers, as well as to maintain continued relationship with our existing borrowers by providing credit packages which take care of both the present as well as future aspirations of the borrowers in pursuing their various productive ventures."

"While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of introducing various innovative services and systems," Prasad says. "Business has been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. The Bank was the first among nationalized banks to establish a fully computerized branch and ATM facility at its Mahalaxmi Branch in Mumbai way back in 1989. BoI is also a Founder Member of sWIFT in India. It pioneered the introduction of the health Code system in 1982, for evaluating/ rating its credit portfolio.

The Bank's association with the capital market goes way back to 1921 when it entered into an agreement with the Bombay stock Exchange (BsE) to manage the BsE Clearing house. It is an association that has blossomed into a joint venture with BsE, called the BoI shareholding Ltd. that extends depository services to the stock broking community. According to Prasad, Bank of India with its wide network of branches spread over the length and breadth of India, is well versed in international trade and has branches in financial centers of the world.

"Bank of India's Us offices are familiar, confident, and comfortable-doing business in the Us. our New york and san Francisco offices have a team of banking professionals who come from different parts of India. These officers are well versed in India-related trade. As such, Bank of India is in a position to get things moving faster in India," he adds.

Towards this end, Bank of India offers several services to its varied clients such as advising and adding confirmation to LCs opened by BoI branches in India or overseas. Also, on request advising and adding confirmation to LCs opened by other banks in India; opening of LCs on India and getting them confirmed by branches in India, if required; Negotiating drafts drawn under Indian banks' LCs whether advised through us or otherwise, so long as they are not restricted LCs; Discounting drafts drawn under Indian banks' DA LCs at competitive rates; Issuing guarantees through our branches in India; And, advisory services in respect of doing business with India and guidance on documentation for LCs emanating from India, syndication business and financing for acquisitions.

India is in news today because it is a nation on the move. This is like a clarion call to do business/invest in India. Procedures for import of capital goods, approval for setting up industries, repatriation of income, etc. have been liberalized with the effect that investment has flooded into India and Indian companies have been able to raise loans at very fine rates in the Euro-dollar market, he says.

"Now is, therefore, the right time to do business with India. Probably the first thing to do is to team up with, deal or route India related business through an organization that knows the intricacies of doing trade with India. That way you can concentrate on closing deals and booking profits while the nitty-gritty of India trade is handled by professionals in the line. Bank of India is just who you should be looking for," Prasad says.

[BY AJAY GHOSH]