Since 2016, Bank of Baroda has focused on transforming its retail lending business through digitalization, risk-based pricing, and expanded distribution via channel partners and DSAs. The strategy emphasized quality-driven growth, linking interest rates to credit bureau scores to reward good borrowers.
These initiatives helped significantly grow the retail loan portfolio, with strong expansion in home, auto, and education loans, outperforming industry growth rates. At the same time, the bank improved asset quality, reducing NPAs from 4.16% (2016) to 1.77% (2019).
The bank strengthened its presence through doorstep banking, partnerships with auto manufacturers, education consultants, and approved housing projects. It also introduced customer-focused schemes like loan takeovers with lower rates and digital sales channels.
Rajasthan was identified as a key growth market due to its large branch network and strong loan market share across retail segments.
Overall, the strategy combines growth, digitization, and risk management to build a stronger retail lending portfolio.
