Calcutta, Feb. 1: Bank of Baroda is planning to expand its operations to Texas and California in the US, Canada, China and Malaysia.

It has also set a target to become a ‘zero NPA’ (non-performing asset) bank by 2005-06.

Talking to The Telegraph, executive director Anil K. Khandelwal said, “We are keen to expand our overseas operations. We would like to penetrate more into the US market. China is another option which we are considering.”

Bank of Baroda is also opening a 100 per cent subsidiary in Tanzania.

The public sector bank is already present in the UK, Belgium, Hong Kong, Mauritius, Seychelles, South Africa, Kenya, Uganda and Fiji. “Overseas operations contribute 20-25 per cent of our business,” said Khandelwal.

He was recently in the city to address a three-day seminar organised by the Indian Society for Training and Development.

The bank’s aim to become a zero-NPA bank will be achieved in a phased manner. “Our net NPA stood at 3.7 per cent on March 31. We would bring it down to below 2 per cent in 2004-05 and become free of NPAs by 2005-06,” he said.

Bank of Baroda will soon introduce core banking solutions for greater efficiency and lower transaction cost and once they are in place the bank will review its staff strength. It employs 40,000 people in its 2,750 branches. The bank is also strengthening its human resource development (HRD) wing. It is planning to bring in a top-notch HRD professional and appoint 25 HRD managers to revitalise the existing workforce.

Bank of Baroda is mostly banking on small and medium enterprises and retail for credit offtake. “In retail, we have registered nearly 50 per cent growth in the current fiscal,” he said.