Bank of Maharashtra has plans to open its maiden overseas offices in the United Kingdom and the United States and is negotiating with the government for setting up branches in other countries as well.

"We do not have any overseas branches so far, but have planned to open three-four representative offices in the UK and the US in the next six months," BoM chairman and managing director S C Basu said on Tuesday.

The bank was negotiating with the Centre for approvals for setting up overseas units in other regions, including the Middle East, he said.

The bank also has plans to foray into the non-life insurance sector this year in joint venture with a public sector company.

With about 30 per cent targeted growth to Rs 50,000 crore (Rs 500 billion) during 2004-05, BoM was focusing on specific sectors like infrastructure financing, housing finance, retail advances as well as the agriculture sector.

The total advances is targeted to increase from Rs 12,000 crore (Rs 120 billion) in 2003-04 to Rs 17,000 crore (Rs 170 billion), while deposit amount will increase to Rs 33,000 crore (Rs 330 billion) from Rs 26,000 crore (Rs 260 billion).

Basu said the bank, which had a net NPA level of about 4.8 per cent during March 2003, was recording a cash recovery of about Rs 130-150 crore (Rs 1.30-1.50 billion) every year and aimed to bring the NPA down to below 1 per cent by 2006.  

He, however, remained non-committal when asked if the bank would fulfil the criteria laid by the Reserve Bank of India that the profitable banks could declare dividend only if they had a net NPA level of below 3 per cent.

About the branch expansion plans this year, the CMD said: "We will add about 50 new branches to take the total number to 1350. In the eastern region, we will open about 10-15 branches."

There was also a plan to increase the number of ATM counters from the current 60 to 300 by the year-end.

He said the bank was expecting better credit offtake by the infrastructure and agricultural sectors during the year and was planning new loan instruments for the purpose.

"We are expecting Rs 300 crore (Rs 3 billion) additional loan disbursement for the agriculture sector this year," he said.

Earlier, speaking on 'Transformation in banking for accelerated Indian economic growth' at the Banking Conclave organised by the Indian Chamber of Commerce and the Federation of Indian Chambers of Commerce and Industry (eastern region), in Kolkata, he said the banking industry should ensure smooth flow of funds in the growing sectors.

The banking system should come forward for project financing in a major way, he said.