Bank of Baroda, BOB will invest Rs 500 crore (5 billion) to create a centralised network over the next two years, reports CNBC India.
The bank is changing its focus to retail and small corporate lending. BOB has already appointed the Gartner Consultancy group to provide it with management and technical expertise.
Bank of Baroda is already embarked on a project to make banking more accessible to its customers. The bank on Friday launched www.billdesk.com an online bill payment management system. This service, put up at a cost of Rs 1.63 crore (Rs 16.3 million) offers universal electronic bill presentment and payment service. This service will allow customers to receive, review, pay and organize bills online. However as of now the online bill payment system will be available in Mumbai only. This facility will be taken to other metro cities in the coming weeks.
Meanwhile, Bank of Baroda has said it is considering lending at sub prime lending rates or PLR to the right customers. Lending rates are likely to see a cut of about 0.5% to 1%. The bank's current PLR rate stands at 12%. Officials at the bank say this rate is not conducive for the market.