Bank of Baroda (BoB), country’s public sector lender is looking at slashing the share of wholesale advances to 40% from the present 45%, in order to achieve a better balance. Due to its large wholesale book apart from its considerable international operations, it has been having low margins among the large state-run peers.
With this move, the bank aims to firm up its net interest margin, which has seen a sequential dip in the last two quarters. It will also help the bank forge larger number of individual relationships that will help in long-term. In the third quarter, the state-run bank had posted higher level of bad loans from advances, which also impacted its bottom-line.
