Speaking to the media here on Friday following the final session at the 21st Bank Economists' Conference (BECON) '98, which was held in Bangalore from December 16 to 18, Rajagopal said the new set of priorities chalked out for Bank of India include reduction in NPA levels, maintaining the cash-deposit ratio at the existing level, mobilising low cost deposits and making the bank's numerous subsidiaries profitable.

Rajagopal took charge as the new CMD of Bank of India after a three-year stint as trouble shooter at the beleaguered Indian Bank. He is also the founder member of the IBA committee of economists which has recently prepared a profile on important industries in the country in which banks have a sizeable portfolio.

Rajagopal said he would concentrate on keeping the NPA level within 7 per cent during the current fiscal. This would mean a careful examination of the liability portfolio of the bank over the past few years and undertake asset-liability management in the coming weeks.

Apart from introducing new products and innovations in the coming months, Bank of India also plans to maintain its capital adequacy ratio at around 9 per cent. Plans are also underway to expand the existing credit offtake and at the same time mobilise low cost deposits from rural and semi-urban branches which would keep constant the cash deposit ratio.

According to Rajagopal, the bank's 19 overseas branches are doing good business and in the coming weeks, he plans to concentrate on their activities which supplement the bank's income in recessionary years. No plans are underway to expand the bank's network abroad, he added.

Bank of India has 2,600 branches across the country and in terms of business parameters is next only to State Bank of India, Rajagopal said. Bank of Baroda has however taken the lead in terms of total business generated and branch network.

Bank of India has a total deposit figure of Rs 36,000 crore and investments amounting to around Rs 26,000 crore. The total volume of business is approximately Rs 1,00,000 crore, he added. This is higher than Canara Bank's figure of Rs 75,000 crore which makes the bank third in the hierarchy after State Bank of India and Bank of Baroda.