BANK of Baroda has earmarked Rs 50 crore for risk investments in customer centric products and has picked up 10 per cent stake in Indianideas, a technology company providing electronic payment and commerce services.
"We have invested Rs 1.60 crore in Indiaideas and will like to take up more and more customer centric products such as the online bill management services launched on Friday in the city", BoB chairman and managing director P S Shenoy told newspersons here after inaugurating the facility.
Billdesk, the online service of indiaideas.Com, would allow bank customers as well as non-customers to receive and pay similar bills electronically, he said.
The service, which is free of charge, would be available in over 100 branches in Mumbai, he said adding, it would also be introduced in other cities soon.
Kiosks would be set up at BoB branches to facilitate the use of billdesk service, Shenoy said.
Indiaideas.Com director M N Srinivasu said BoB and Sidbi Venture Capital together hold 26 per cent stake. The public sector bank has 10 per cent while the balance 16 per cent (Rs 2.40 crore) was with the latter, he added.
Shenoy said BoB would be spending around Rs 500 crore for their IT initiatives over next few years.
On introduction of sub-prime lending rates, the CMD said BoB was in process of working out modalities and parameters and expects the document to be ready in seven to 10 days. The prime lending rate of the bank was currently at 11 per cent.
Shenoy said on their insurance venture, BoB was still awaiting Reserve Bank of India's approval. The bank was in discussions with several players for partnerships for this venture, he added.
Asked about the quantum of stake offloading the bank would opt for in their subsidiaries, Shenoy said it would be decided only after the partner was selected. (PTI)