Project file on bank of baroda made for college project

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TOPIC:
BANK OF BARODA
SUBJECT- SEMINAR
SUBJECT CODE: MIS-156
MASTER IN BUSINESS ADMINISTRATION (MBA FYIC)
(2018-2023)
INDIA’S INTERNATIONAL BANK
SUBMITTED TO- SUBMITTED BY-
[PROF. ARUN] DANISH
[PROF. AMANJOT SINGH] ROLL NO.-2018MGA1016
UNIVERSITY BUSINESS SCHOOL
GURU NANAK DEV UNIVERSITY, AMRITSAR

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ACKNOWLEDGEMENT
I feel deeply indebted people who have guided me in this project. It would
have not been possible to make such an extensive report without help, guidance, and
inputs from them. This was all the more significant, since the changes in the banking
sector, were of recent origin and relatively less material was available in the form of
books or articles or information on the net. Most of my information source has
been from professionals & Newspaper articles.
Project guide:
PROF. AMANJOT SINGH
PROF. ARUN
I would firstly like to express my gratitude towards my guide PROF. AMANJOT
SINGH and PROF. ARUN for having shown so much of flexibility and guiding in such
a way that I was really learning the subject all the time. She showed us a lot of
openness in his approach and I would like to thank him for her support in a way that
has lead to proper and effective learning.
Also, I am very grateful to all my friends and senior for being by my
side always. Without their help and motivation, it would have been impossible to
complete my project.

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INDEX
SR. NO. PARTICULARS PAGE NO.
1 Introduction 4
2 History 4
3 Company’s Profile 6
4 SWOT analysis 10
5 Products and services 12
6 Initiatives 21
7 Bank of Baroda rank report 26
8 Rewards 27
9 Subsidiaries of Bank of Baroda 28
10 Joint ventures of Bank of Baroda 29
11 Financial reports of year 2018, 2017 and 2016 30
12 Trends analysis 33
13 Suggestions 34
14 Conclusion 35
15 Bibliography 36

4. 4
INTRODUCTION
Bank of Baroda (BOB) is an Indian state owned banking and financial services company
headquartered in Vadodara earlier known as Baroda) in Gujarat. It is among top four largest bank in
India and offers a range of banking products and financial services to corporate and retail customers
through its branches and through its specialized subsidiaries and affiliates.
Currently it is one of the big four banks of India, along with State Bank of India, ICICI bank and
Punjab National bank giving international presence.
Based on 2017 data, it is ranked 1145 on Forbes Global 2000 list. BOB has total assets in excess
of ₹ 3.58 trillion (making it India’s 2nd biggest bank by assets)SS, a network of 5538 branches in
India and abroad, and 10441 ATMs as of July, 2017.The government of India announced the
merger of Bank of Baroda, Vijaya Bank and Dena Bank on September 17, 2018 to create the
country's third largest lender. The envisaged amalgamation will be the first-ever three-way
consolidation of banks in the country, with a combined business of Rs 14.82 lakh crore, making it
the third largest bank after State Bank of India (SBI) and ICICI Bank.
It has been a long and eventful journey for Bank of Baroda with it completing its centenary
celebrations in 2008 starting from a small building in Baroda to hi-tech corporate centre in
Mumbai and having international presence in over 20 countries, so it’s time to turn back the
pages of time, and salute the great moments of its historical saga.
MISSION
To be a top ranking National Bank of International Standards committed to augmenting stake
holders' value through concern, care and competence.
HISTORY
The Bank of Baroda was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on
20 July 1908 in the Princely State of Baroda, in Gujarat, under the Companies Act of 1887 with a
paid up capital of Rs.10 Lakh. Two years later, in 1910, the Bank opened its first office branch in
Ahmedabad.
The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a bank of this
nature will prove a beneficial agency for lending, transmission, and deposit of money and will be a
powerful factor in the development of art, industries and commerce of the State and adjoining
territories."
These words are etched into the mind, body and soul of what has now become a banking legend.
Following the Maharaja's words, the emblem was crafted to represent wealth, safety, industrial
development and an inclination to better and promote the country's agrarian economy. This
emblem shows a coin, symbolizing wealth, embossed with an upraised palm, a safety cover for
the depositor's money, with a cogwheel that promotes industrial growth in tandem with the two
corn ears that stand for the progress of the staple agricultural growth in the country.

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Since its inception in 1908 in Gujarat, the bank had the logo of an industrial and agriculture
wheel with Sanskrit letters - `Akshayam te Bhavishyati' (the future is secure).
No history is complete without mention of its heroes, mostly ordinary people, who turn in extra-
ordinary performances and contribute to building an institution. There were also the leaders, both
corporate and royal, who provided the vision and guided the Bank through trail blazing years,
and departing, left behind footprints on the sands of time. This Roll of Honor will be incomplete
without mention of men, of the stature of Maharaja Sayajirao Gaekwad, Sampatrao Gaekwad,
Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM Chokshi.
Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda survived the crisis,
mainly due to its honest and prudent leadership. This financial integrity, business prudence,
caution and an abiding care and concern for the hard earned savings of hard working people,
were to become the central philosophy around which business decisions would be effected. This
cardinal philosophy was over the 94 years of its existence, to become its biggest asset. It ensured
that the Bank survived the Great War years. It ensured survival during the Great Depression.
The bank grew domestically until after World War II. Then in 1953 it crossed the Indian Ocean to
serve the communities of Indians in Kenya and Uganda by establishing a branch each in
Mombasa and kampala. The next year it opened a second branch in Kenya, in nairobi and in
1956 it opened a branch in D a r - e s - s a la a m. Then in 1957 BoB took a giant step
abroad by establishing a branch in London which was the center of the British Commonwealth and
the most important international banking center. In 1958 BoB acquired Hind Bank which was
its first domestic acquisition. In 1961 it merged New Citizen Bank of India which helped to
increase its branches in Maharashtra. In 1960’s it opened new branches in Fiji and Mauritius and
expanded its operation to Tamil Nadu.
In 1969 the Indian government nationalized 14 top banks, including BoB subsequent to which it
became state owned banking company.
Even while big names were dragged into the Stock Market scam and the Capital Market scam,
the Bank of Baroda continued its triumphant march along the best ethical practices and has
managed to insulate itself away from fatal transactions and has strictly adhered to the RBI
guidelines.

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COMPANY PROFILE:
Type Public
Traded as
BSE: 532134
NSE: BANKBA
RODA
CNX Nifty
Constituent
Industry Banking, Financi
al services
Founded 20 July 1908;
110 years ago
Founder Maharaja H. H.
Sir Sayajirao
Gaekwad III
Headquarters Vadodara,
Gujarat, India
Number of locations 5481 branch
banks (2017)
Area served Worldwide
Key people P. S. Jayakumar
(CEO)
Shanti Lal Jain &
Vikramaditya
Singh
Khichi (ED)
Products Consumer
banking
Corporate

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banking
Credit cards
Finance and
insurance
Investment
banking
Mortgage loans
Private banking
Private equity
Wealth
management
Revenue ₹9.92
crore(US$1.4 mil
lion) (2017)
₹1.27
crore (US$180,0
00) (2016)
Operating income ₹5.07
crore (US$710,0
00) (2017)
₹15.58
crore (US$2.2 mi
llion) (2016)
Net income ₹3.14
crore (US$440,0
00) (2017)
₹-.54
crore (US$−75,0
00) (2016)
Total assets ₹75.42
crore(US$10 mill
ion) (2017)
₹6.48
crore (US$900,0
00) (2016)
Number of employees 52,420 (2017)
52,021 (2016)
Capital ratio 13.17% (2016)[1]

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Website www.bankofbaro
da.com
With over 5000 branches globally and staff strength of over 42,000 BoB has continued to retain
its leadership position amongst the nationalized banks. The Bank enjoys strong fundamentals,
large franchise value and good brand image. Story of Bob is scripted in corporate wisdom and
social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a
story of ordinary bankers and their extraordinary contribution in the ascent of Bank of Baroda to
the formidable heights of corporate glory. It is a story that needs to be shared with all those
millions of people - customers, stakeholders, employees & the public at large - who in ample
measure, have contributed to the making of an institution.
Ever since it’s rebranding in 2005, Bank has consistently promoted its major strengths viz. large
international presence; technological advancement and superior customer service etc. Bank had
introduced the sub brand BARODA NEXT-State of the Art-Straight from the Heart to showcase
how it has utilized technology to nurture long term relationships for superior customer
experience. The sub brand has been reinforced by alternate delivery channels such as internet
banking, ATMs, mobile banking etc and robust delivery outfits like Retail Loan Factories, SME
Loan Factories, City Sales Office etc. Bank’s constant endeavor to strengthen its branch/ATM
network combined with well- informed staff offering personalized service at its various touch
points have enhanced customer interactions and satisfaction. Thus the Bank has firmly positioned
itself as a technologically advanced customer-centric bank.
It won best Public Sector Bank award at MCX and CNBC–TV18, India’s No. 1 Business
medium presented for the first time, the ‘India Best Banks and Financial Institutions Awards’ to
felicitate India’s best financial professionals for their contribution in building a robust financial
system in 2011.It won first prize under Indira Gandhi Rajbhasha Shield Competition in 2012.
It was in 2005 when Bob went in for rebranding by spending about Rs.800 million on a high
profile rebranding campaign which included Rs.50 million spent on appointing the then Indian
cricket team's captain, Rahul Dravid as its Brand ambassador and a punch line "India's
International Bank" added to the campaign. In the same year it built a Global Data Centre in
Mumbai for running its centralized banking solution (CBS) and other applications in more than
1,900 branches across India and 20 other counties where the bank operates. The bank also
changed its decade long logo which comprise dual ‘B’ letterforms that hold the rays of the rising
sun which is called the Baroda Sun implying that the bank seek to be the source that will help all
the stakeholders realize their goals. The single-colour, compelling vermillion palette was
carefully chosen, for its distinctiveness as it stands for hope and energy.
The bank is the first among Public Sector Banks in India, to introduce and implement extended
working hours like 12-Hour Banking and 24-Hour Banking. The bank also introduced the unique
concept of Happy Hour banking which is designed to encourage customers to avail certain
services during lean business hours of the branch by providing them incentives, gifts as well as
concessions in service charges etc. This facility is available from 5 p.m. to 8 p.m. at 24 hour
banking branches and from 6 p.m. to 8 p.m. at 8 am to 8 pm branches.

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SWOT ANALYSIS
STRENGTH :
Diversified branch network: Bank of Baroda, being the second largest bank in India, has a
diversified branch network mix which sustains low cost resource mobilisation. Bank of Baroda
has about 5330 branches throughout the country and has penetrated into the rural India too with
about 1964 branches in rural India.
Complete Banking products portfolio – Bank of Baroda has the complete portfolio of Banking
services and financial products, many of which are availed by their customers.
Government accounts – There are multiple government accounts which support the operation of
Bank of Baroda. For example – Railways pensioners get their pension from Bank of Baroda
accounts. Similarly, differenti government profiles need to have a government bank account to
receive salary or pension in which case Bank of baroda benefits over private banks.
Strong Capital Position: Bank of Baroda has maintained at good capital adequacy ratio (CAR)
of 13.2% as on March 31, 2016.The bank’s net worth was at INR 305,860 million. The strong
capital position helps the bank to sustain its solvency levels in the time of adverse market
conditions.
Second Largest Bank: Bank of Baroda is the second largest bank in India with its global
business at INR 9,578,080 million as on March 31, 2016.
WEAKNESSES:
High growth in NPAs: The growth in Bank of Baroda’s NPAs is outpacing the growth in its
advances. In FY2016, BOB’s NPA was 9.9% of gross advances. From 0.9% in 2009, the bank’s
NPA has grown to 5% in 2016. Higher growth in NPAs is offsetting benefits of growth.
Low overseas presence: Bank of Baroda is in the top 25 banks in Asia, yet the bank is over
dependent on its Indian market, i.e. 89.6%. BOB’s contribution of operations to revenue and
profits is very low when compared to the top 10 largest banks in Asia.The low overseas presence
increase business risks.
Forex Scam : Several employees over the years have been caught in Forex scam who were
operating out of Bank of Baroda and HDFC. Even the RBI penalized Bank of Baroda for the
forex scam which was close to 6000 crores in amount. Similarly, there were other scams
involving bank employees.
Low brand equity being government banks – Government banks are known to advertise very
less and only as per budget available. As a result, the bank has very low brand equity when
compared with private banks. In terms of Government banks, State bank of India and other such
state bank branches as well as Bank of India has higher brand equity.

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OPPORTUNITIES:
Transformation to Bankassurance model: BOB has the vision to transform itself into a
bancassurance driven financial institution. BOB has ventured into a Joint Venture with Andhra
banks and a UK based company Legal and general, to form a life insurance company called
IndiaFirst Life Insurance. This model may yield results in the long run for Bank of Baroda.
Favourable interest rate policies: Improvement in business confidence in India has driven RBI
to exit from an expansionary monetary policy (low interest) to a more calibrated monetary policy
(high-interest rate). This will boost net interest margins for Indian banks.
Increasing adoption of technology: Online cash transactions are gaining popularity, especially
after the move of demonetization and launch of platforms like BHIM app. The increasing use of
E-transactions allows BOB to improve the return on technology spend.
Bank Audits – Conducting bank audits can help HDFC in avoiding the scams happening within
branches. Even during demonetisation, there were several scams which surfaced. Bank audits will
keep employees in check and will increase the overall reputation of the brand.
THREATS:
Intensifying Competition: RBI has allowed foreign banks to invest up to 74% in Indian banks.
This allows competition to raise funds from the foreign banks and give competitions to existing
large public and private sector banks in India.
Lukewarm global interbank lending: Post the sub-prime crisis, the global market for interbank
lending has been lifeless. The sub-prime crisis has exposed various banking institutes of US, UK
and many European countries. This has made raising money in foreign currencies all the more
difficult for the existing banks
Private banks – Private banks are a major competitor to government banks due to facilities
provided and because of the high functionality of Private banks over government ones.

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PRODUCTS AND SERVICES OF THEBANK
BoB has a wide variety of products and services that meet diverse requirements of its vast customer
base. Some of the products provided by bank of Baroda in banking services are as follows:
1. BARODA CURRENT ACCOUNT
Current Deposits plan is ideal for professionals and provides flexibility through
overdraft facility. The most basic, most flexible deposit option for those whose transactions
take the form of an everyday exercise. Bank of Baroda's Current Deposits are the back-
bone of all trading activities.
2. BARODA FLEXIBLE RECURRING DEPOSIT ACCOUNT
Enjoy the facilities of a recurring deposit along with the flexibility of varying monthly
installments and a higher yield.
Key Benefits
Regularizes savings by encouraging a saving habit.
Loan/Overdraft facility up to 95% of the deposit amount.
Provision for nomination.
3. CAPITAL GAIN ACCOUNT SCHEME, 1988
The Capital Gain Account Scheme primarily helps you avail of tax exemptions from
capital gains. It offers two types of accounts- Savings and Term Deposits.
Key Benefits
Tax exemption under section 54(F) (4) of Income Tax Act 1961.
Provision for nomination
4. SAVINGS BANK ACCOUNT

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The savings bank account key benefits may be updated as under immediately: -
Key Benefits
Simplest deposit option available to the depositor.
Easy to operate. Terms and conditions kept lucid to facilitate a layman's understanding. No
hidden costs.
Zero balance facility – Your Savings Bank Account with us remain alive even when
the balance reaches zero. This facility is only for salaried employees in Central/ State
Govt. Public & Private Limited Companies, Agents of Life & General Insurance
Corporations and Students. Even for those receiving compensation from govt. for
acquisition of their properties.
5. NAGRIK BACHAT KHATA
No frills. No hidden charges. Just banking.
Bank of Baroda launches a new small savings product – Nagrik Bachat Khata
The Indian economy has undergone a significant transformation since the economic reforms in
1991 with the banking sector in the forefront. Nagrik Bachat Khata is a product through which
Bank of Baroda intends to extend its services to a vast section of population by making
banking easy and convenient.
Key Benefits
Services designed to cater to a vast majority of Indian population
Banking simplified
Open account with an initial amount of just Rs. 50/-
Zero service charges for non-maintenance of a minimum balance of Rs. 50/-

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LOANS SANCTIONED BY BANK OF BARODA
 SCHEME FOR GRANT OF SHORT TERM LOAN TO SMALL AND
MEDIUM SIZED ENTERPRISES
Enterprises GROUP:
Small and Medium-sized corporates, business and trading houses (including partnership firms).
ELIGIBILITY CRITERIA
 Continuous credit rating of at least B+ for the last three years
 Latest Balance Sheet etc. should be available.
 Satisfactory financial performance in terms of sales / turnover and profits.
 Negative variance, if any, should not be more than 10%.
 Satisfactory dealings with the Bank for at least five years.
No major inspection / audit irregularities.
LOAN AMOUNT:
Upto 25% of the existing Fund based Working capital limits (depending on the Credit Rating),
subject to a minimum of Rs. 10 lakhs and maximum of Rs. 250 lakhs.
PERIOD:
Not exceeding 180 days – minimum 90 days.
PURPOSE:
To meet temporary shortfall / mismatch in liquidity, for meeting genuine business requirements
only.
SECURITY
First charge / Equitable mortgage of fixed assets of the company / firm or extension of
existing first charge / equitable mortgage of fixed assets, ensuring that there is a minimum asset
cover of 1.50.

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Extension of Charge on current assets for the additional facility ensuring that adequate
drawing power is available.
RATE OF INTEREST:
0.5% below the existing rate on working capital limits.
 BARODAPERSONALLOAN
A wedding in the family, maybe it's high time you surprised your spouse with a priceless
gift. Or you simply need to pamper your family with an extended vacation. These are the times
when you may need a helping hand. That's when you can bank on us. Bank of Baroda's
Personal Loan offers financial help to meet your personal requirements.
Key Benefits
Helps you take care of all kinds of expenses at a short notice.
The loan covers medical expenses, marriage expenses, travel expenses, honeymoon
holiday expenses and any other personal use.
 BARODAPERSONALCOMPUTER LOAN
The number of businesses and homes depending on computers for a more efficient and
systematic, day to day management of activities is on the rise. Whether it helps your kid's
education or augments your business activities, or provides as a source of information and
entertainment at home, computers have proved to be indispensable.
Although computers are getting cheaper by the year, they still come with a considerably high
price tag. Bank of Baroda's Personal Computer Loans enable you to finance your dream PC
and also provide for the purchase of legal software.
Key Benefits
Provides adequate finance to purchase a branded PC of your choice.
Dual finance provision for PC (up to Rs. 1 Lakh) as well as software (up to 20,000/-).

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 BARODADESHVIDESH YATRA LOAN
Bank of Baroda introduces Baroda Desh Videsh Yatra Loan, a unique loan product
specially designed to cater to the needs of individuals to meet tour and travel expenses for
visiting any place in India and abroad.
Key Benefits
Travel now and pay later. Repayment in maximum 36 EMIs
Simple procedures / formalities.
Loan can be availed Upto Rs. 10.00 Lacs.
Available for undertaking pleasure trips within the country as well as for overseas.
Caters to the needs of individuals (salaried, self employed, professionals and
individuals engaged in business/industry)
No margin money up to Rs. 50, 000.
 BARODAEDUCATION LOAN
Education is the most important investment one makes in life. Higher studies and specialization in
certain fields call for additional financial support from time to time. Whether you are
planning school education (nursery to standard XII) of your child, pursuing a graduate or post-
graduate degree, the Bank of Baroda Education Loans, can help finance your ambitions and
goals.
ADVANCES AGAINST SHARES/IPOS
i) Advances against Shares to Individuals: -
Bank of Baroda has introduced scheme of Advances to individuals against shares for genuine
individual investors. The maximum amount of finance that can be granted to an individual is to
the extent of Rs.20 lakh, subject to minimum margin stipulation from time to time.
ii) Bank Finance to employees to buy shares of their own companies: -
In view of a number of companies offering Employee Stock Options (ESOPs) and
employee quota in their IPOs, Bank of Baroda has introduced scheme to extend finance under
ESOP/ IPO to employees to buy shares of their own companies to the extent of –12- months
salary of the employee with a maximum of Rs. 10 Lacs subject to regulatory guidelines on
margin, which is presently as under: -

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a. Initial Public Offering (IPO): 50% margin
b. Employees Stock Option Plan (ESOP): 10% margin.
 BARODAVAIBHAV LAKSHMI LOAN
Bank of Baroda presents a unique Retail Loan product Baroda Vaibhav Lakshmi specially
designed for women employees. A loan product that addresses the varied needs of working women.
Key Benefits
Takes care of all kinds of expenses.
Loan can be availed as term loan or overdraft facility without any security.
Loan can be repaid in maximum 36 EMIs.
 BARODALOAN TO PENSIONERS
We all retire from our jobs at some point in life. The continuous toiling and hard work have
made most of our dreams come true and have also provided for our loved and dear ones. Yet
there remain some dreams unfulfilled, some personal dreams that you need to achieve on your
own.
Key Benefits
Maximum amount of loan - Rs. 1,00000/- or 10 times of your last monthly pension,
whichever is lower.
Personal accidental death Insurance cover of up to Rs. 75000/-
This loan facility is available at all the branches of the bank, enabling you the convenience
of the Bank of Baroda branch near you.

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 BARODAMARRIAGE LOAN
The marriage of your daughter or loving sister is usually one that you want to celebrate with pride
and joy. When it is the most important day of her life, and yours, you want to give her the best
memories of the day to cherish. You want to make sure that all arrangements are made well in
advance and every comfort meticulously provided for.
The Marriage Loan from Bank of Baroda is the ideal way to provide for such occasions.
Working women can also avail of this loan to meet expenses related to their marriage.
Key Benefits
The Baroda Marriage Loan gives you the freedom of a personal loan, as high as Rs. 2 Lakhs.
Ease of repayment in 60- months, in Monthly/Quarterly/Half-yearly installments or under the
EMI (Equated Monthly Installments) option.
 HOUSING LOANS TO NRIS / PIOS
Bank of Baroda presents yet another innovative product offering in the form of Baroda Housing
Loans to NRIs / PIOs, a unique housing loan facility designed specially for Non Resident
Indians (NRI) and Person of Indian Origin (PIO).
The Home Loans offering from Bank of Baroda essentially provides NRIs and PIOs for finance
in relation to the purchase of a new house, construction of a new dwelling unit, financing of an
old dwelling unit, for repair / renovation / extension of your existing house, purchase of a
plot and repayment of loans from other housing finance companies.
Key Benefits
A loan product tailor-made for NRI / PIO needs
 Opt for Flexi Rate plan to hedge the interest rate risk by breaking the loan into two separate
accounts

18. 18
Free property insurance and personal accident insurance
No pre payment / foreclosure charges for part as well as full prepayment (when repaid from
own sources by the borrower)
 BARODAHOME IMPROVEMENTLOAN
Bank of Baroda brings to you a unique loan product. A loan for Repairs / Renovations /
Improvement / Extension of Home and for Furniture, Fittings & Fixtures.
Key Benefits
Loan available for repairs / renovation / improvement / extension of the existing house.
Loan available for purchase of furniture / fixtures / furnishing / other gadgets such as fans,
geysers, air conditioners etc. required, to:
o Our existing housing loan borrowers o New borrowers
Free Credit Card:
Free Credit Card (complementary for first year) will be issued to borrowers with loan limit above
Rs.2/-lacs. Type of card will depend on loan limit as under
Loan limit Type of card
Above Rs.2/-lacs - Up to Rs.5/-lacs
Above Rs.5/-lacs - Up to Rs.10/-lacs
Paras International
Exclusive
Concessions in respect of Group borrowers:
Group borrowers and employees of approved organizations will be eligible for following
concessions for loans considered for repairs necessitated on account of natural calamities such
as floods, cyclones and earth quakes etc.
1. Rate of Interest - Reduction Upto 0.25%.
2. Margin - After satisfying about the reasonability of project cost, the margin may be reduced by
a maximum of 5%.
3. Cross guarantees - cross guarantees may be allowed.

19. 19
 FOREIGN CURRENCYLOAN (FCNR’B)
Currencies for loan:
US $, Euro €, Japanese ¥ and Sterling £
Who is Eligible:
This facility would be available to all our existing Corporate / non corporate clients
Purpose:
1. Working Capital.
2. Loan for capital expenditure such as purchase of new plant and machinery, acquisition of
equipments and other assets.
3.
Tenor:
The facility can be allowed for a period from 3 months to 36 months subject to periodical rollover.
Rate of Interest:
Interest rate would be linked to LIBOR of relevant currency + spread depending on credit rating,
payable at monthly rests.
Commitment Fee:
1% p.a. of unutilized amount of FCL if it is not availed within 30 days of sanction.
Prepayment charges:
1% on the loan amount for the remaining period.
Processing Charges:
1. Working Capital- Rs. 20,000/-
2. Term Loans- as applicable for rupee TL

20. 20
INITIATIVES
Bank of Baroda is a pioneer in various customer centric initiatives in the Indian banking sector.
Bank is amongst first in the industry to complete an all-inclusive rebranding exercise wherein
various novel customer centric initiatives were undertaken along with the change of logo. The
initiatives include setting up of specialized NRI Branches, Gen-Next Branches and Retail Loan
Factories/ SME Loan FACTORIES with an assembly line approach of processing loans for speedy
disbursal of loans.
The major ongoing initiatives of the Bank are detailed below:
Business Process Reengineering (BPR)
Bank had initiated a major Business Process Reengineering to give a big boost to sales growth by
enhancing customer satisfaction and by making possible alternate channel migration thus
reinventing itself to challenges of the 21st century. Bank’s BPR project known as “Project-
Navnirmaan” has altogether 18 activities covering both the BPR and organisational restructuring,
aimed at transforming the Bank’s branches into modern “sales & service” outlets.
The most important initiatives planned under this project include – (1) Conversion of all metro and
urban branches into modern centres known as Baroda Next branches; (2) Creation of Automated
and Leaner Back Offices like City Back Office (for automated cheque processing etc), Regional
Back Office (for faster account opening etc), Establishment of two Call Centres, Creation of
Academy of Excellence, Introduction of Frontline Automation at select branches for customer
convenience and Organisational Restructuring.
People Initiatives:
Bank is endowed with a competent and motivated employee base which is engaged in handling the
extensive business operations of the Bank across the globe. Strategic HR interventions like,
according cross border and cross cultural work exposure to its managers, hiring diverse functional
specialists to support line functionaries and complementing the technical competencies of its
people by imparting conceptual, managerial and leadership skills, gave the Bank competitive
advantage. People initiatives were blended with IR initiatives to create an effectively harmonious
workplace, where everyone prospered.
Bank launched a comprehensive leadership development program ‘Project UDAAN’ during 2010-
11 with the prime objective of creating leaders for the future. Such a massive and comprehensive
leadership development effort is unparalleled in the Indian banking industry and first of its kind for
any Indian state-owned Bank. These kinds of elaborate man management policies have made the
Bank a breeding ground for business leaders. The Bank provided several leaders to the industry-
men who went on to build other great institutions.

21. 21
New Technology Platform
Bank has made substantial progress in its end-to-end business and IT strategy project covering the
Bank’s domestic, overseas and subsidiary operations. All Branches, Extension Counters in India,
overseas business and five sponsored Regional Rural Banks are on the Core Banking Solution
(CBS) platform.
Bank has been providing to its customers Internet Banking, viz., Baroda Connect and other
facilities such as online payment of direct and indirect taxes and certain State Government taxes,
utility bills, rail tickets, online shopping, donation to temples and institutional fee payment. Bank
has a wide network of ATMs across the country and has also launched mobile ATMs in select
cities. Initiatives have been taken to provide corporate customers with facilities like direct salary
upload, trade finance and State Tax payments etc. Bank has introduced Mobile Banking (Baroda
M-connect) and prepaid gift cards.
Bank has implemented the Global Treasury Solution in its key territories like UK, UAE, Bahamas,
Bahrain, Hong Kong, Singapore and Belgium. Bank has taken various technological initiatives in
overseas operations such as implementation of Centralized SWIFT activity through Data Centre in
Mumbai, Payment Messaging System with Anti Money Laundering check, Anti Money laundering
Compliance and Online List Matching solution. While Bank implemented Transaction-based
Internet Banking facility for its customers in Uganda, Botswana, UAE, New Zealand, Kenya,
Mauritius and Seychelles, a Viewbased e-banking facility was made available in Fiji, Oman,
Tanzania and UK.
Marketing Initiatives
Ever since its rebranding in 2005, Bank has consistently promoted its major strengths viz. large
international presence; technological advancement and superior customer service etc. Bank had
introduced the sub brand BARODA NEXT-State of the Art-Straight from the Heart to showcase
how it has utilized technology to nurture long term relationships for superior customer experience.
The sub brand has been reinforced by alternate delivery channels such as internet banking, ATMs,
mobile banking etc and robust delivery outfits like Retail Loan Factories, SME Loan Factories,
City Sales Office etc. Bank’s constant endeavor to strengthen its branch/ATM network combined
with well informed staff offering personalized service at its various touch points have enhanced
customer interactions and satisfaction. Thus the Bank has firmly positioned itself as a
technologically advanced customer-centric bank.

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CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES
Bank has a long legacy and tradition of contributing actively to the social and economic
development of the communities in which it operates through various development activities in the
realm of education, health, human welfare and other social activities. Bank of Baroda always
transcends from business interest and reaches out to weaker section of society, with a view to make
a meaningful difference to them.
In order to promote self employment on sustained scale to the unemployed rural youth by
providing them training and hand holding support, bank has set up 49 Baroda Swarojgar Vikash
Sansthan (Baroda-R-SETI) in seven states. Upto 30.09.2016 Baroda RSETIs have trained 283171
youth out of which 44999 are SC, 70808 ST, 30519 minorities and 75855 are other backward
communities.
Bank has also established 51 Financial Literacy and Credit Counseling Centres (FLCC) in the
name of ‘SAARTHI’ in nine states to provide the financial counseling services, financial literacy
and awareness of banking services in rural and urban areas. Since inception 660353 persons have
been benefited from the services of FLCCs.
During year 2015-16, Bank has made expenditure under CSR in different activities as under:
Segment Amount (Rs. in Lacs)
Education & Skill Development 1,421.14
Health & Care 132.68
Socio-Economic Development 386.38
Grand Total 1,940.20
BOBCARDS CSR programmes/projects areas shall be aligned with the national development
priorities and the needs of the communities and will be in line with schedule VII of the section
135 of the Act.
By its CSR programmes, BOBCARDS shall support programmes /projects and activities in the
following domains:

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1. Empowerment
a) programmes/projects that promote gender equality, support creation of opportunities and
facilitate employment for women, the differently abled and other weaker sections of the
society;
b) facilitate financial support and provide educational materials. information and tools such as
books, periodicals, computer equipment to needy schools and children with a view to make
them more educated and thus socially and economically empowered
c) promoting gender equality, empowering women, setting up homes and hostels for women
and orphans, setting up old age homes, health care facilities, day care centers and such
other facilities for senior citizens and measures for reducing inequalities faced by socially
and economically backward groups;
2. Education
a) promoting access and quality of education and foster research and development through
creating infrastructure, promote scholarships, research grants among others in schools,
colleges and universities;
b) programmes/projects on vocational/academic training for women, specially-abled people,
socially and economically backward and other weaker sections of the society.
3. Environment
a) supporting programmes/projects that focus on conservation of the environment, encourage
use of renewable energy, ensure environmental sustainability proper, waste management,
reducing the carbon footprint and preserve the balance of ecology;
b) ensuring environmental sustainability, ecology balance, protection of flora and fauna, animal
welfare, agro-forestry, conservation of natural resources and maintaining quality of soil, air
and water;
4. Eradication of Poverty
a) programmes/projects and initiatives to impart financial literacy to facilitate financial
inclusion;
b) programmes/projects that help income generation, skill trainings and information

24. 24
dissemination programs related to farming, agricultural practices and animal husbandry to
support farmers with an aim to encourage rural development and reduce poverty and
hunger.
5. Disaster Relief
a) engage with not-for-profits to deliver programmes/projects that organize relief work in
times of natural calamities;
b) programmes/projects which contribute towards disaster preparedness and humanitarian
aid.
6. Health
a) programmes/projects that help in reducing child mortality, improving maternal health,
combat and prevent diseases, facilitate hygiene and sanitation etc.
7. Others
a) Contribution to the Prime Minister’s National Relief Fund or any other fund setup by the
Central Government for socio-economic development and relief and welfare of the
scheduled caste, scheduled tribes, other backward classes, minority and women.
b) Any other activities in relation of the above and all other activities which forms part of
BOBCARDS CSR programme.
The Future
Revolutionary and discontinuous changes in the operating environment are stark reminders that
business success is 'impermanent'. Bank has achieved substantial progress in technology and is
continuously integrating multiple platforms of technology to generate synergies. Bank
continuously attempts to adapt to the dynamic economic environment while engaging in long term
relationships to provide superior customer service.
Bank’s constant endeavor to delight its customers, which is built on its strong fundamentals will
make it stronger, more resilient and enable to achieve its vision of to be the Most Admired Bank.

25. 25
BANK OF BARODA RANK REPORT 2018
Bank of Baroda got 32nd rank in Fortune 500 report and 1218 rank in Forbes 2000 report.
Industry : Banking Incorporation Year : 1908
Parameters Rs. Crore % Change
Revenue 54,048.63 3.13
Net Operating Income 46,056.42 3.56
Profit -1,887.11 0.01
Assets 719,149.94 3.95
Net Worth 46,566.23 8.12
Equity Dividend 0.00
Employee Cost 4,901.58 0.26
Profit Ratios
Revenue Assets Net Worth
54,048.63719 149.9446 566.23

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REWARDS
Some of the important rewards received by the bank are as follows:
Best Public Sector Bank under the category ‘Global Business Development’ by Dun &
Bradstreet – Polaris Financial Technology Banking Awards 2013.
Banking Technology Excellence Award 2013 among PSBs by IDRBT.
Bank was awarded 1st Rank in the Public Sector Bank Category in Financial Express -
Ernst & Young Best Banks Survey 2012-13 published in The Financial Express Magazine, March
2014 issue.
MSME Banking Excellence Award-2013 as the Best Bank in MSME by the Chamber of Indian
Micro Small and Medium Enterprises.
The Sunday Standard Best Banker’s Award – Best Banker-HR constituted by The New
Indian Express Group.
ASSOCHAM 9th Annual Banking Summit –cum-Social Banking Award 2013-Winner in
Public Sector Banks Category in the field of ‘Social Banking’.
“Excellence in Home Loan Banking” Award by My FM Stars of the Industry.
The ‘Global Excellence and Leadership Award’ in the category of 50 most talented CSR
Professionals of India by the World CSR Congress.

27. 27
SUBSIDIARIES OF BANK OF BARODA
Bob has established presence in all the major areas of banking including housing finance, credit
cards, asset management and capital market through its various subsidiaries which function in
synergy with the Bank. This diversified presence places the Bank in a position to move towards the
concept of Universal Banking.
Following are the Domestic Subsidiaries of BoB
BOBCARDS Ltd.
BOB Capital Markets Ltd.
Nainital Bank Ltd.
BOB Housing Finance Ltd.
BOB Asset Mgmt. Co. Ltd.
BoB has following international subsidiaries
BOB (Botswana) Ltd.
BOB (Kenya) Ltd.
BOB (Uganda) Ltd.
BOB (Hong Kong) Ltd.
BOB (Guyana) Inc.
BOB (UK) Ltd

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JOINT VENTURES OF BANK OF BARODA
Besides above subsidiaries Bob also has entered into Joint Ventures which are
Domestic Joint Ventures:
Baroda Pioneer Asset Management Company Ltd
India First Life Insurance Company Limited
Baroda Uttar Pradesh Gramin Bank
Baroda Rajasthan Gramin Bank
Baroda Gujarat Gramin Bank
Nanital -Almora Kshetriya Gramin Bank
Jhabua-Dhar Kshetriya Gramin Bank
International Joint Ventures:
Indo-Zambia Bank Ltd. (Lusaka)
India International Bank Malaysia Berhad

29. 29
FINANCIAL REPORTS OF YEAR 2018, 2017 AND 2016
Balance Sheet as on 31st March, 2018
Capital & Liabilities
Title Schedules As on 31st March 2018 As on 31st March 2017
Capital 1 530,36,44 462,09,31
Reserves and
Surplus
2 42864,40,75 39841,16,02
Deposits 3 591314,82,24 601675,17,29
Borrowings 4 62571,97,19 30611,44,00
Other
Liabilities and
Provisions
5 22718,20,54 22285,55,73
TOTAL 719999,77,16 694875,42,35
Assets
Title Schedules As on 31st March 2018 As on 31st March 2017
Cash and
Balances with
Reserve
6 22699,63,98 22780,21,33
Bank of India
Balances with
Banks and
Money at call
and short notice
7 70197,73,91 127689,69,92
Investments 8 163184,53,05 129630,53,96
Advances 9 427431,83,13 383259,22,31
Fixed Assets 10 5367,39,22 5758,37,34
Other Assets 11 31118,63,87 31118,63,87
TOTAL 719999,77,16 694875,42,35
Contingent
Liabilities
12 298226,66,31 252518,96,05
Bills for
Collection
45779,69,17 37599,41,85
Significant
Accounting
Policies
17
Notes on
Accounts
18

30. 30
Balance Sheet as on 31st March, 2017
Capital & Liabilities
Title Schedules As on 31st March 2017 As on 31st March 2016
Capital 1 462,09,31 462,09,31
Reserves and
Surplus
2 39841,16,02 39736,89,22
Deposits 3 601675,17,29 574037,87,22
Borrowings 4 30611,44,00 33471,70,02
Other
Liabilities and
Provisions
5 22285,55,73 23667,91,92
Total 694875,42,35 671376,47,69
Assets
Title Schedules As on 31st March 2017 As on 31st March 2016
Cash and
Balances with
Reserve Bank
of India
6 22780,21,33 21672,41,54
Balances with
Banks and
Money at Call
and Short
Notice
7 127689,69,92 112227,93,45
Investments 8 129630,53,96 120450,52,10
Advances 9 383259,22,31 383770,18,03
Fixed Assets 10 5758,37,34 6253,77,56
Other Assets 11 25757,37,49 27001,65,01
Total 694875,42,35 671376,47,69
Contingent
Liabilities
12 252518,96,05 228977,16,33
Bills for
Collection
37599,41,85 32343,74,34
Significant
Accounting
Policies
17
Notes on
Accounts
18

31. 31
Balance Sheet as on 31st March, 2016
Capital & Liabilities
Title Schedules As on 31 Mar 2016 As on 31 Mar 2015
Capital 1 462,09,31 443,56,04
Reserves
and Surplus
2 39736,89,22 39391,78,72
Deposits 3 574037,87,22 617559,52,33
Borrowings 4 33471,70,02 35264,28,04
Other
Liabilities and
Provisions
5 23667,91,92 22329,39,67
Total 671376,47,69 714988,54,80
Assets
Title Schedules As on 31 Mar 2016 As on 31 Mar 2015
Cash and
Balances with
Reserve Bank
of India
6 21672,41,54 22488,59,70
Balances
with Banks and
Money at Call
and Short
Notice
7 112227,93,45 125864,55,37
Investments 8 120450,52,10 116812,23,54
Advances 9 383770,18,03 428065,13,89
Fixed Assets 10 6253,77,56 2874,84,80
Other Assets 11 27001,65,01 18883,17,50
Total 671376,47,69 714988,54,80
Contingent
Liabilities
12 228977,16,33 246384,71,81
Bills for
Collection
32343,74,34 37608,06,25
Significant
Accounting
Policies
17
Notes on
Accounts
18

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TREND ANALYSIS
Trend analysis are very useful is making comparative study of the financial statements for a
number of years. These indicate the direction of movement over a long time and help an analyst
of financial statements to form an opinion as to whether favorable or unfavorable tendencies
have developed. This helps in future forecasts of various items.
KEY BUSINESS ANALYSIS
Total assets and total asset turnover ratio
As we can see in below graph, the Total Assets have increased gradually over the year.
The Asset Turnover ratio is an indicator of the efficiency with which a company is deploying its
assets. It measures the ability of a company to use its assets to efficiently generate sales.
This ratio considers all assets, current and fixed. Those assets include fixed assets, like plant and
equipment, as well as inventory, accounts receivable, as well as any other current assets.
The higher the ratio indicates that the company is utilizing all its assets efficiently to generate
sales. Companies with low profit margins tend to have high asset turnover.
As we can see that the Asset turnover ratio is steady between 0.06 to 0.08 over last 5 years, it
increased in 2011 and 2012 and dipped back in 2013 only to remain steady in 2014.

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SUGGESTIONS
The bank should adopt a procedure of obtaining details of loans from other banks before
sanctioning credit, Bob should insist on a clearance certificate stating that no loan is overdue
to any bank of institution.
The Bob should also reach out to the corporate client for financing their working capital
and other requirement.
Bank must try to reduce its NPA as there is steep rise in Doubtful and Loss Category of
NPA. Efforts should be made to organize an effective credit collection department.
There is an increase in deposit in BoB so it must take necessary steps to increase
the percentage of profit by increasing lending to corporate and big clients.
BoB must increase the percentage of loan amount on the fixed
deposits.
BoB should take an initiative to achieve their future goals and plans.
Capacity Building is another area where BoB has to invest
significantly.
Provision Coverage ratio needs to be improved.

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CONCLUSION
Bank of Baroda was recognized by Dun & Bradstreet as the Best Public Sector Bank under the
category ‘Global Business Development’ at Polaris Financial Technology Banking Awards 2013..
Bank won a Special Award for Best IT Team among Public Sector Banks at IDRBT Banking
Technology Excellence Awards 2012-13. Bank has been pioneer in spreading and
promoting the use of Hindi through the forum of Nagar Rajbhasha Samitis and has won Reserve Bank
Rajbhasha Competition on Aug-13.
Bank constantly innovates, reorients strategies and realigns business processes with advanced
technology to serve the customers better and earn strong brand. The Bank has identified “RACE
AHEAD” as its motto for the FY15 and it can not only achieve a significant business growth but also
improve its profitability and soundness indicators. With GDP growth expected to pick up, banking
business is likely to witness higher optimism during FY15.
BoB has always looked at technology as a key facilitator to provide better customer service and
ensured that its ‘IT strategy’ follows the ‘Business strategy’ to serve all stakeholders. To respond
to increasing competition and other challenges, Bank will make its business model more cost-
efficient and try to improve its Earnings through an optimum mix of interest income and non-interest
income. To achieve this, it will constantly optimise the use of technology as the change agent. Boosted
by robust economic growth, the bank expects to sustain and improve its
performance. Similar to its efforts to improve Asset Quality management in FY14, your Bank
will focus on credit monitoring, NPA recovery and up-gradation in a big way and further arrest
the fresh slippages. Bank proposes to launch ‘Adarsh Grameen Branches’ shortly. These branches will
be constructed by Bank on its owned plot of land in rural areas and will include branch premises,
manager’s residence and assembly areas. The assembly area will be having audio-visual facilities to
enable various activities like agri-clinic, vocational education, medical camp etc. This endeavor will
not only provide BoB to take forward the mission of Financial Inclusion, but also generate a lot of
goodwill. With its intrinsic strengths in the form of capital,
human resources, technology and iconic brand, Bob is well positioned for growth during FY15.

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BIBLIOGRAPHY
Annual report of Bank of Baroda for 2018
www.bankofbaroda.co.in
www.moneycontrol.com
www.wikipedia.com
www.profit.ndtv.com
www. money.rediff.com
www.economictimes.indiatim es.com

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