Bank of Baroda to Expand Tech Team to 3,000 Employees by FY26

In a strategic move to bolster its technological capabilities, the state-owned Bank of Baroda has announced plans to significantly expand its in-house technology team. The bank aims to double the size of its current team, from 1,500 to 3,000 employees within the next two years. This ambitious expansion will be achieved through a combination of regular hiring processes and lateral hires of specialist talent, according to Debadatta Chand, the bank's managing director and chief executive officer.

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The decision comes in the wake of recent actions by the Reserve Bank of India, which has imposed stringent measures on banks due to deficiencies in their technology architecture that affected transaction execution capabilities. Bank of Baroda's initiative not only aims to address these concerns but also to significantly enhance its IT strength by bringing in contemporary talent across various grades, depending on the requirement and the candidates' experience.

Chand revealed these plans following the announcement of the bank's March quarter earnings. He highlighted that the bank is not just focusing on increasing the number of in-house IT professionals but is also aggressively investing in technology infrastructure. With an investment of around Rs 2,000 crore already made in infrastructure, the bank plans to increase its spending in this area due to its growing importance.

For FY24, Bank of Baroda had allocated a budget of Rs 743 crore for technology, with actual IT spending reaching Rs 453 crore, as per management commentary. Furthermore, Chand shared that a generative artificial intelligence-based platform is set to go live soon, offering customers a range of services in an interactive manner.

Looking ahead, Bank of Baroda has set ambitious targets for FY25 and FY26. The bank plans to open 600 new branches and is targeting a credit growth of 12-14%, supported by a deposit growth of 10-12%. Additionally, it aims to maintain net interest margins (NIMs) at 3.15%, underscoring its commitment to robust financial health and customer service excellence.

This expansion and investment in technology underscore Bank of Baroda's commitment to enhancing its operational efficiency and customer service capabilities. By doubling its IT team and increasing technology investments, the bank is positioning itself to meet future challenges and opportunities in the banking sector.