Analysis on Key points discussed in Director's Report of Bank of Baroda for FY 2016-17

1. Analysis on “Directors
Report” of Bank of
Baroda

2. Scope:
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• Chairman Speech. Key points to be discussed
• Brief information on preparation of Directors Report .
• Management Discussion and Analysis
• Corporate Governance.
• Business, Industry Position, Financial Aspects.
• Impact of GST on Banking sector

3. Major checks and balances from
Chairman Speech.
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1. The Financial year 2016-17 has witnessed continued strong progress on economic
reforms covering aspects such as fiscal consolidation, passage of the GST Bill, the
IBC, deep progress on renewable energy, record agriculture.
2. The global economy grew by 3.1% in year 2016 which is marginally lower than 3.2%
as compared to 2015. Sweeping global order changes and uncertainties
notwithstanding – the UK choosing to exit the European union in the Breexit reform
and a new Government in the US taking charge in Jan 2017.
3. As on September 2016, the outstanding credit to Banks stood at US$ 55.27 billion,
growing at 25 per cent on year-on-year basis. Bank credit to Banks has touched the
highest in three years.
4. Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) are growing. As on
November 09, 2016, US$ 6,971.68 million were deposited, while 255.1 million
accounts were opened.

4.  Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) are growing. As on
November 09, 2016, US$ 6,971.68 million were deposited, while 255.1 million
accounts were opened.
 The deposits in Banking systems increased significantly due to demonetization
initiative of Govt.
 CASA growth increased from Rs. 1,32,539 CR. In FY 2016 to Rs. 1,73,594CR
in FY 2017.
 PAT as of 31/03/2016 was (5,395.54Cr) against PAT of 1,383.14 CR as of
31/03/2017.
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5.  Global Economic Growth:
2015: 3.2%
2016: 3.1%
Global Trade Growth:
2015: 2.6%
2016: 2.3%
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Management Discussion And Analysis :

6.  Business Transformation Journey: Project Navoday:
During the year, our Bank embarked upon a comprehensive Business
Transformation.
1. Retail Credit
2. New Product
3. Rural And Agricultural Lending
4. Financial Inclusion
5. Pradhan Mantri Jan Dhan Yojana
6. Performances of RRB’s in BOB
7. Cash Management and Currency Chest
8. Assets Liability Management Committee
9. HR Compliances
10. Borada Annubhuti Programme
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7. 7

8. Banking Update
 The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today
gave its approval for allowing Public Sector Banks (PSBs) to raise capital to
meet their additional capital requirements under BASEL-III by diluting
Government holding up to 52 percent.
 Out of 27 PSBs, Government of India controls 22 through majority holding. In
the remaining 5 banks, SBI holds majority stake. These 27 PSBs control 70
percent of total branches, deposits and credit in the Indian banking system. Gol
has regularly been infusing incremental capital in PSBs.
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9. Impact of GST on Banking Sector
1. Increase in Compliance
Most banks have a multi-state presence. State-wise registration will therefore lead
to a substantial increase in compliance levels, especially because most banks have
obtained a ‘centralized’registration under service tax. So, currently, a bank may be
filing only two returns on an annual basis as a service tax assesse, but with GST,
the bank might be required to file as many as 61 returns per year for every State
they are present in (five returns per month plus one annual return).
2. Paying GST at Applicable Rate
With GST, services are expected to attract 18% GST. This rate is higher by 3% from
the current service tax rate of 15%. This may make banking services such as issue
of cheque books and demand drafts more expensive, particularly for retail
customers.
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10. 3. Paying GST at applicable rate
Now-a-days, banks also deal in commodities like gold/silver on which a
concessional GST rate is expected to be applicable. Therefore, banks need to be
careful in paying GST with the appropriate applicable rate on different products.
4. Lost faith on Banking Sector
Increase in tax rate from 15 to 18 % creates may effect severely on the consumers as
there is increase of 3% extra.
5. Learning new method of payments & returns
Its difficult for the staff to understand & undertake new method of payment as
well a filing of returns.
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11. Corporate Governance report
 The Bank is a listed entity, which is not a company but body corporate under
The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
1) Composition of the Board - The Banking Regulation Act, 1949, The Banking Companies
Act, 1970, and The Nationalized Banks (Management & Miscellaneous Provisions) Scheme
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Shri Ravi Venkatesan - Non-Executive Chairman
Shri P. S. Jayakumar - Managing Director & CEO
Shri Mayank K. Mehta - Executive Director
Shri Ashok Kumar Garg - Executive Director
Smt. Papia Sengupta - Executive Director
Shri Mohammad Mustafa - Director [Non-Executive – Representing GOI]
Shri Ajay Kumar - Director [Non-Executive - Representing RBI]
Shri Prem Kumar Makkar - Director [Non-Executive - Representing Non-workmen]
Shri Gopal Krishan Agarwal - Director [Non-Executive - under Section9(3)(g)-CA]
Prof. Biju Varkkey - Director [Non-Executive - under Section 9(3)(h)]
Dr. R. Narayanaswamy] - Director [Non-Executive - Representing Shareholders
Shri Bharatkumar D. Dangar - Director [Non-Executive - Representing Shareholders]
Smt. Usha A. Narayanan - Director [Non-Executive - Representing Shareholders]

12.  2) Board Meetings - 15 held (minimum of 6 required under Clause 12 of The
Nationalized Banks Scheme
 3) Code of conduct – Compliance with SEBI LODR & posted on web
 4) COMMITTEE / SUB-COMMITTEE OF DIRECTORS / EXECUTIVES
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Committee Regulations
3.1 Management Committee of the Board (MCB) - Clause 13 The Nationalized Banks Scheme
3.2 Credit Approval Committee of the Board (CACB) - Government of India Gazette Notification
3.3 Audit Committee of the Board (ACB) - RBI guidelines issued vide Circulars dated 26.09.1995
3.4 Risk Management Committee of the Board - RBI’s guidance note on Credit Risk Management
3.5 Stakeholders Relationship Committee Regulation 20 of SEBI (LODR) Regulations, 2015
3.6 Nomination Committee - Reserve Bank of India, Notification No. DBOD No. BC No 46
3.7 Customer Service Committees - Directives of RBI
3.8 Committee on High Value Frauds RBI circular no. RBI/2004.15/.DBS.FGV(F)
3.9 IT Strategy Committee - Reserve Bank of India Working Group on Information Security,
3.10 Strategic Advisory Committee of the Board on
HR
Recommendations of Khandelwal Committee on HR Issues of PSBs
3.11 Committee of Directors - Constituted as per GOI guidelines
3.12 Committee for Monitoring of Recovery - As per guidelines issued by Ministry of Finance,
3.13 Shares/Bonds Transfer Committee SEBI (LODR) Regulations, 2015.

13.  5) GENERAL BODY MEETINGS
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Date of meeting Type of meeting Purpose
25th June, 2014 18th Annual
General Meeting
Annual Accounts
26th March, 2015 Extra Ordinary
General Meeting
allot upto 6.44 Cr. equity shares of
@ Rs. 195 to GOI on preferential
basis
24th June, 2015 19th Annual
General Meeting
Annual Accounts
28th September
2015
Extra Ordinary
General Meeting
allot upto 9.26 Cr. equity shares of
@ Rs. 192 to GOI on preferential
basis
24th June, 2016 20th Annual
General Meeting
Annual Accounts

14. 7) FINANCIAL CALENDAR
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18th May, 2017 –
BM for
considering
Accounts
30th June 2017–
AGM for Issue
6000 Cr. Shares
24th June 2017
to 30th June
2017 - (Book
Closure)
25th June 2017 -
Last Date for
receipt of Proxy
Forms
10th July 2017 -
Dividend
Payment Date

15. 8. SHAREHOLDERS’ INFORMATION
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9. SHARE PRICE, VOLUME OF SHARES TRADED

16. 16
• Nimisha
• Farooqui
• Shruti
• Lavesh