"For me the major concern is to increase the income flow of the bank. This will be done through low-cost deposit mobilisation and improving the performance of the bank both in its domestic and international operations," Rajagopal said in an exclusive interview to The Financial Express hours after taking over as BoI chairman. Introducing new financial products and boosting the moral of BoI staff top his list of priorities.

Rajagopal refused to be stereotyped as the turnaround man given the job he had to do in Indian Bank. He was brought to Indian Bank's helm at the heights of its crisis, when the bank reported a massive loss of over Rs 1,500 crore in fiscal 1995. "Thesituation is different here... It is a different challenge. I am sure I will be able to compete," he said.

Rajagopal's entry into Bank of India comes at a critical juncture when the bank has started wilting under pressure from mounting non-performing assets and thinner margin.

"The rise in NPAs is natural in an era of financial sector reforms. We will make all-out efforts on the recovery front. But along with that I will also focus on increasing the income flows and business," he said.

His experience in Indian Bank is likely to come to his help in tackling the NPA problem. But he cautioned that the situation in BoI is different from that of Indian Bank. "The solutions will have to be different. However, I may follow the Indian Bank example and set up settlement advisory committees for recovery of bad loans," he said.

On his stint in Indian Bank, Rajagopa said he is happy with what he has left behind. "The bank is stable now and once a net borrower in the call market has turned into a net lender. Anefficient asset liability management system has been put in place and discretionary powers of branch managers are back in place," he said.

He outlined his agenda in Bank of India as "to bring the bank back to the top". "It's a bank with excellent work culture. The bank at one point of time was highly rated and it continues to have excellent international and national presence. Its corporate client list is one of the best in the country and has high customer loyalty. I will have to take advantage of all these factors," he said.

Rajagopal's tenure in Bank of India will be till March 31, 2000, when he retires from service, which is just about a year and a quarter to make things work. "I don't count months. I count days and minutes. The time available is sufficient to put the bank back on the rail. I will be involved in the preparation of two crucial balance sheets and that I feel will give me sufficient opportunity to prove my mettle," he said.

An ardent devotee of Satyasai Baba of Puttabarti, Rajagopalsought the Baba's blessings before taking over his new assignment. "Baba told me `be happy' when I met him before taking charge here. Before taking charge in Indian Bank he had told me `don't get depressed. Carry people with you and you'll do well.' I am confident that I will be able to do justice to the confidence reposited on me by the government and the Reserve Bank of India," he said.