Our normal assumption is that the business (deposits and advances) will grow at a CAGR (compound annual growth rate) of 11.6 percent. Last year our growth rate was almost at this level. We intend to open 600 branches within 2-3 years. This year, we are aiming to open 300 branches.

We have already opened 107 branches this year. Branch expansion will also help increase our business. The roadmap for doubling activity will depend on market conditions. This may happen within five years or later. But at least we have a road map to work on and grow from. And we are currently moving in the right direction.

Our business model is geared more toward organic growth than inorganic growth. Whatever revenue growth we aim for, it is based on organic growth. We don’t want to go the inorganic route. Our approximately 8,200 agencies will allow us to reach a certain level of activity in five years.

Additionally, planned branch additions (600 will be added over the next 2-3 years) will help us achieve the goal of doubling our business. This goal is scalable – it can be achieved sooner or later.

Currently, no inorganic growth/merger is envisaged. We want to farm organically. The disinvestment process (of Nainital Bank, in which BoB holds 98.57 per cent stake) is underway. Such processes normally take their own time to close. We are continuing with our plans for the IPO of IndiaFirst Life Insurance Company.

Its IPO is expected in 9 to 12 months.

Initially, when we gave our forecast for the full year (FY25), the scenario was different. In the first half of the year, the banking system’s deposit growth was relatively slower.

We recorded deposit growth of 9.1% in Q2 FY25. In order to achieve deposit growth of 10-12% in FY25, we need to grow more than that in H2. So we thought we should be more realistic in terms of calibrating growth on both the deposit and advance side.

The recalibration of credit and deposit growth targets was carried out taking into account the CD ratio as one of the parameters. We can borrow very well from the market and manage the gap in growth of deposits and advances. That’s what we did. But if deposits continue to grow at a much lower rate than advances, the CD ratio would deteriorate further.

Today, after taking into account the market scenario (in which credit growth exceeds deposit growth) that we and the system are facing, we have realigned the growth target on both sides (assets and liabilities) . This will also keep the CD ratio fairly balanced, around 82 percent. Thus, this recalibration will have a positive impact on the CD ratio, moderating it compared to the current level.

We have an international ledger. If you look at the data for the last five quarters, the peak CD level was 120% for this book. This figure fell to 96 percent. We are quite satisfied with the national CD ratio, which is 81.58 percent.

So, our global CD (domestic and international) is 83.8. We are targeting a CD of 82 percent by March 2025. Thereafter, depending on liquidity, we will recalibrate the CD ratio.

Retail assets have grown approximately 23-24 percent over the last 8-9 quarters. And in the second quarter, growth reached almost 20 percent. This accelerated growth itself would move the needle toward the retail book.

On the deposit side, we are encouraging more savings and term deposits from retail customers. Our growth on this front has been better than the current system. So this focus would continue. We therefore focus on deposits and advances from individuals. Currently, the RAM (retail, agriculture and MSME) portfolio represents approximately 58 percent of the national loan portfolio. We note an improvement of almost 100 basis points on this portfolio since March 2024.

We intend to increase this proportion to 65 percent within three years. We want to take full advantage of our extensive network of agencies/points of contact (BC agents). This is something we are working on. Dependence on the portfolio of companies would sometimes lead to volatility (in margins), which we do not want. We’ve pretty much stabilized that loan portfolio. …But the growth of personal loans would be higher than that of business loans.