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ublicly listed lender PT Bank of India Indonesia (BOII), a subsidiary of Mumbai-based Bank of India, is expecting 20 percent increases in all of its business segments, supported by a growing local client base, its executives said.

For the past three years, the bank booked annual growth of 18 percent - 22 percent on both of its top line and bottom line, BOII president commissioner Vijayalakshmi Rajaram Iyer said.

'€œThis year we are expecting to record the same, about 20 percent,'€ she said on Thursday.

BOII is expected to reap Rp 88.6 billion (US$8.92 million) in operational income and Rp 65.99 billion in net profits by year-end. It hopes to boost its loans to Rp 2.2 trillion and third-party funds to Rp 2.37 trillion.

Iyer, who also serves as Bank of India'€™s chairperson and managing director, said business in Indonesia had been positive. '€œIndonesia provides good opportunities for us and we cater to many segments, including small retailers,'€ she said.

The bank currently serves between 40,000 and 60,000 customers from its 13 branch offices in Jakarta; Bandung, West Java; Denpasar, Bali; Makassar, South Sulawesi; Medan, North Sumatra; and Surabaya, East Java.

The majority of its clients are still dominated by Indian nationals and Indonesian nationals of Indian origin which account for 40-60 percent. The remaining are local people.

BOII vice president director Anil Bhalla said the company plans to widen its customer base among locals this year by expanding its credit segments. '€œOur local clients are into mining, commodity, agriculture, trading and commercial sectors. We are going to intensify those segments,'€ he added.

Meanwhile, according to BOII'€™s latest financial report, retail and grocery trading segment continued to be the major contributor to the bank'€™s lending business. The segment made up for 47.8 percent of its loans portfolio, followed by manufacturing with 19.3 percent, real estate with 7 percent and mining with 5.2 percent.

In its annual general shareholders'€™ meeting on Thursday, BOII announced it would not pay dividends to its shareholders and instead, would use its 2012 net profits '€“ amounting to Rp 55 billion '€“ as retained earnings as the bank was in the process of raising capital to become a tier-2 bank.

Under the new Bank Indonesia (BI) regulation, to be fully implemented in June 2016, a tier-2 bank requires a minimum capital of between Rp 1 trillion and Rp 5 trillion. As of March 2013, BOII'€™s capital stood at Rp 382.7 billion.

According to BOII president director Ningsih Suciati, the bank plans to continue retaining its future net profits and to hold a rights issue in 2014 to raise the necessary capital. She declined to provide details on the amount of targeted funds from the rights issue.

She added BOII had not received information from the headquarters regarding the bank'€™s implementation of BI'€™s single presence policy, which requires banks controlled by the same owner to merge.

BOII is currently 76 percent controlled by the Bank of India, which is an Indian government'€™s bank.