Banking in India in the modern sense originated in the last decades of the 18th century.

The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank still in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the presidency banks acted as quasi -central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955.

Colonial era
During the colonial era merchants in Calcutta established the Union Bank in 1839, but it failed in 1840 as a consequence of the economic crisis of 184849. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India, it was not the first though. That honour belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoir d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French possession, followed. HSBCestablished itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalised and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South

Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". During the First World War (19141918) through the end of the Second World War (19391945), and two years thereafter until theindependence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:

Years

Number of banks Authorised capital Paid-up Capital that failed (Rs. Lakhs) (Rs. Lakhs)

1913 12

274

35

1914 42

710

109

1915 11

56

1916 13

231

1917 9

76

25

1918 7

209

[edit]Post-Independence The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralysing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included: The Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalised on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to Public [4] Ownership) Act, 1948 (RBI, 2005b). In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India".

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

[edit]Nationalisation

in the 1960s

Despite the provisions, control and regulations of Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalisation of the banking industry. Indira Gandhi, then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper [5] entitled "Stray thoughts on Bank Nationalisation." The meeting received the paper with enthusiasm. Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969')) and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969. These banks contained 85 percent of [5] bank deposits in the country. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the Government of India controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalised banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. [edit]Liberalisation

in the 1990s

In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalisation, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalised the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 74% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4 64 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this led to the retail boom in India. People not just demanded more from their banks but also received more. [edit]Current

period

By 2010, banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that [6][7][8] the banks' loan recovery efforts have driven defaulting borrowers to suicide. [edit]Adoption

of banking technology

The IT revolution had a great impact in the Indian banking system. The use of computers had led to introduction of online banking in India. The use of the modern innovation and computerisation of the banking sector of India has increased many fold after the economic liberalisation of 1991 as the country's banking sector has been exposed to the world's market. The Indian banks were finding it difficult to compete with the international banks in terms of the customer service without the use of the information technology and computers.

Number of branches of scheduled banks of India as of March 2005

The RBI set up a number of committees to define and coordinate banking technology. These have included: In 1984 formed the Committee on Mechanisation in the Banking Industry (1984) whose chairman was Dr C Rangarajan, Deputy Governor, Reserve Bank of India. The major recommendations of this
[9]

committee was introducing MICR technology in all the banks in the metropolis in India. provided use of standardized cheque forms and encoders.
[11]

[10]

This

In 1988, the RBI set up the Committee on Computerisation in Banks (1988) headed by Dr. C.R. Rangarajan which emphasized that settlement operation must be computerized in the clearing houses of RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that there should be National Clearing of inter-city cheques at Kolkata, Mumbai, Delhi, Chennai and MICR should be made Operational. It also focused on computerisation of branches and increasing connectivity among branches through computers. It also suggested modalities for implementing online banking. The committee submitted its reports in 1989 and computerisation began from 1993 with [12] the settlement between IBA and bank employees' association. In 1994, Committee on Technology Issues relating to Payment systems, Cheque [13] Clearing and Securities Settlement in the Banking Industry (1994) was set up under chairman Shri WS Saraf. It emphasized Electronic Funds Transfer (EFT) system, with the BANKNET communications network as its carrier. It also said that MICR clearing should be set up in all branches of all banks with more than 100 branches. In 1995, Committee for proposing Legislation on Electronic Funds Transfer and other Electronic [14] [12] Payments (1995) again emphasized EFT system.

Number of ATMs of different Scheduled Commercial Banks of India as on end March 2005

Total numbers of ATMs installed in India by various banks as on end June 2012 is 99,218. The New Private Sector Banks in India is having the largest numbers of ATMs which is followed by off-site ATMs belonging to SBI and its subsidiaries and then it is followed by New Private Banks, Nationalised banks [12] and Foreign banks. While on site is highest for the Nationalised banks of India.
[12]

[15]

Branches and ATMs of Scheduled Commercial Banks as on end March 2005

Bank type

Number of branches On-site ATMs Off-site ATMs Total ATMs

Nationalised banks

33627

3205

1567

4772

States bank of India

13661

1548

3672

5220

Old private sector banks

4511

800

441

1241

New private sector banks

1685

1883

3729

5612

Foreign banks

242

218

582

800

Public-sector banks
1. Allahabad Bank 2. Andhra Bank 3. Bank of Baroda 4. Bank of India 5. Bank of Maharashtra 6. Canara Bank 7. Central Bank of India 8. Corporation Bank 9. Dena Bank 10. IDBI Bank 11. Indian Bank 12. Indian Overseas Bank 13. Oriental Bank of Commerce 14. Punjab & Sind Bank 15. Punjab National Bank 16. Syndicate Bank 17. UCO Bank 18. Union Bank of India 19. United Bank of India 20. Vijaya Bank [edit]Public-sector

banks - SBI and associate banks

State Bank of India Associate banks 1. State Bank of Bikaner & Jaipur 2. State Bank of Hyderabad 3. State Bank of Travancore 4. State Bank of Mysore 5. State Bank of Patiala

Previously associate banks later merged into SBI 1. State Bank of Saurashtra (Merged with SBI in 2008) 2. State Bank of Indore (Merged with SBI in 2010)

[edit]Private-sector 1. Axis Bank

banks

2. Catholic Syrian Bank 3. City Union Bank 4. Development Credit Bank 5. Dhanlaxmi Bank 6. Federal Bank 7. HDFC Bank 8. ICICI Bank 9. IndusInd Bank 10. ING Vysya Bank 11. Jammu & Kashmir Bank 12. Karnataka Bank 13. Karur Vysya Bank 14. Kotak Mahindra Bank 15. Lakshmi Vilas Bank 16. Ratnakar Bank Limited 17. Saraswat Bank 18. South Indian Bank 19. Saurashtra Bank 20. Tamilnad Mercantile Bank Limited 21. Yes Bank [edit]Foreign

banks operating in India

1. ABN AMRO Bank N.V. (Now merged with RBS)(Applied for withdraw of Retail Bank License) 2. Abu Dhabi Commercial Bank 3. American Express Bank

4. Australia and New Zealand Bank 5. Bank Internasional Indonesia 6. Bank of America NA 7. Bank of Bahrain and Kuwait 8. Bank of Ceylon 9. Bank of Nova Scotia (Scotia Bank) 10. Bank of Tokyo Mitsubishi UFJ 11. Barclays Bank PLC 12. BNP Paribas 13. Calyon Bank 14. Chinatrust Commercial Bank 15. Citibank N.A. 16. Credit Suisse 17. Commonwealth Bank of Australia (Recently Launched Retail Services in Mumbai) 18. DBS Bank 19. DCB Bank now RHB Bank 20. Deutsche Bank AG 21. FirstRand Bank 22. HSBC 23. JPMorgan Chase Bank 24. Krung Thai Bank 25. Mashreq Bank psc 26. Mizuho Corporate Bank 27. Royal Bank of Scotland 28. Shinhan Bank 29. Socit Gnrale 30. Sonali Bank 31. Standard Chartered Bank 32. State Bank of Mauritius 33. UBS 34. VTB [edit]Foreign

banks with business in India

[1]

Banks with branches in India.

1. ABN AMRO Bank N.V. - Royal Bank of Scotland 2. Abu Dhabi Commercial Bank 3. American Express Bank 4. Antwerp Diamond Bank 5. Arab Bangladesh Bank 6. Bank International Indonesia 7. Bank of America

8. Bank of Bahrain and Kuwait 9. Bank of Ceylon 10. Bank of Nova Scotia 11. Bank of Tokyo Mitsubishi UFJ 12. Barclays Bank 13. BNP Paribas 14. Calyon Bank 15. Chinatrust Commercial Bank 16. Citibank 17. DBS Bank 18. Deutsche Bank 19. HSBC (Hongkong & Shanghai Banking Corporation) 20. JPMorgan Chase Bank 21. Krung Thai Bank 22. Mashreq Bank 23. Mizuho Corporate Bank 24. National Australia Bank 25. Shinhan Bank 26. Socit Gnrale 27. Sonali Bank 28. Standard Chartered Bank 29. UBS [edit]Foreign

banks with representative offices in India

American Banks American Express Bank of New York Wachovia Bank Northern Trust

Australian Banks Commonwealth Bank Westpac Banking Corporation

Austrian Banks Raiffeisen Zentralbank

Belgian Banks Fortis Bank KBC Bank

Canadian Banks Royal Bank of Canada

UAE Banks Emirates Bank International

French Banks Credit Industriel et Commercial Natixis

German Banks HypoVereinsbank Commerzbank Dresdner Bank DZ Bank AG Deutsche Zentral Genossenschafts Bank HSH Nordbank Landesbank Baden-Wrttemberg

Irish Banks Depfa Bank

Italian Banks Banca Intesa Banca di Roma Banca Popolare di Verona Banca Popolare di Vicenza UBI Banca Monte dei Paschi di Siena Sanpaolo IMI UniCredit

Nepalese Banks Everest Bank

Portuguese Banks Caixa Geral de Depositos

Russian Banks Vnesheconombank Promsvyazbank

South African banks First Rand Bank

South Korean Banks Woori Bank

Spanish Banks

Caixabank Banco de Sabadell Banco Bilbao Vizcaya Argentaria

Sri Lankan Banks Hatton National Bank

Swiss Banks Credit Suisse Zurich Cantonal Bank

[edit]Indian

banks with business outside India

[2]

List of subsidiaries of Indian Banks abroad as on November 30, 2007:

Name of the Bank

Name of the Centre

Andhra Bank

Dubai, Malaysia

all india bank

Hongkong

AXIS BANK Ltd.

Hongkong, Singapore,Dubai,Sri-Lanka,United Kingdom

SBI (Canada) Ltd.

Toronto, Vancouver, Mississauga

SBI (Japan) Ltd.

Tokyo, Osaka

SBI (California) Ltd.

Los Angeles, Artesia, San Jose (Silicon Valley)

SBI Finance Inc.

Delaware, U.S.A.

SBI International (Mauritius)

Mauritius (Off-shore Bank)

SBI (INDIA) Ltd.

Shanghai

SBI (Singapore) Ltd.

Singapore

Bank of Baroda (Uganda) Ltd.

Uganda

Bank of Baroda (Kenya) Ltd.

Kenya

Bank of Baroda (Ghana) Ltd.

Accra, Ghana

Bank of Baroda (U.K.) Nominee Ltd.

London, United Kingdom

Bank of Baroda (Hong Kong) Ltd.

Hong Kong (Converted into Restricted Licensed Bank)

Bank of India (Japan) Ltd.

Tokyo, Osaka

Bank of India Finance (Kenya) Ltd.

Kenya

Canara Bank

Hongkong, United Kingdom

IOB Properties Pte Ltd.

Singapore

Bank of Baroda (Botswana) Ltd.

Gaborone, Botswana

Bank of Baroda (Guyana) Inc.

Georgetown, Guyana (South America)

ICICI Bank (U.K.) Ltd

London (U.K.)

ICICI Bank (Canada)Ltd

Toronto (Canada)

Bank of Baroda (Tanzania) Ltd.

Tanzania

HPD BENEFIT FUND LTD (A QUASI BANK) Ltd.

RACHI EGYPT

Bank of Baroda (United Arab Emirate)

Dubai, Abu Dhabi, Ras Al Khaimah, Deira, Dammam, Salalah, Al Ain

Bank of Baroda

Muscat, Oman

Bank of Baroda

Brussels, Belgium

ICICI Bank Eurasia LLC

Russia

PT Bank Indomonex

Indonesia

Indian Ocean International Bank Ltd. (IOIB)

Port Louis, Mauritius

Punjab National Bank International Limited (PNBIL)

London, United Kingdom

Bank of Baroda (Trinidad and Tobago) Limited

Trinidad & Tobago

PT Bank Swadesi Tbk

Indonesia

Bank of Baroda (Trinidad and Tobago) Limited

Trinidad & Tobago

Syndicate Bank

United Kingdom

UCO Bank

Hongkong, Singapore

Bank of Baroda
From Wikipedia, the free encyclopedia
(Redirected from Bank of baroda)

Bank of Baroda

Type

Public company

Traded as

BSE: 532134

Industry

Banking, Financial services

Founded

1908

Founder(s)

Maharaja Sayajirao Gaekwad*1+

Headquarters Vadodara, India

Area served

Worldwide

Key people

S S Mundra (Chairman & MD)

Products

Credit cards, consumer banking,corporate banking, finance and insurance, investment banking,mortgage loans, private banking,private equity, wealth management

Revenue

345.88 billion (US$6.4 billion) (2012)*2+

Net income

52.48 billion (US$970 million) (2012)*3+

Total assets

4.574 trillion (US$84 billion) (2012)*4+

Website

www.bankofbaroda.com

Bank of Baroda (BoB) (Hindi: ) is an Indian state-owned banking andfinancial services company headquartered in Vadodara. It offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialised subsidiaries and affiliates in the areas of retail banking,investment banking, credit cards and asset management. Its total global business wasRs. 7,003 billion as of 30 Sep 2012.[5] In addition to its headquarters in its home state of Gujarat it has a corporate headquarter in the Bandra Kurla Complex in Mumbai. Based on 2012 data it is ranked 715 on Forbes Global 2000 list.[6][7] BoB has total assets in excess of Rs. 3.58 trillion (short scale), or Rs. 3,583 billion, a network of 4261 branches (out of which 4168 branches [8] are in India) and offices, and over 2000 ATMs. The bank 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.[9] The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by theGovernment of India and has been designated as a profit-making public sector undertaking (PSU).
Contents
*hide+

1 History

o o o o o o o

1.1 19081959 1.2 1960s 1.3 1970s 1.4 1980s 1.5 1990s 1.6 2000s 1.7 2010s

2 Subsidiaries 3 International presence 4 Affiliates

5 Baroda Manipal postgraduate diploma in banking and finance 6 Bank of Baroda financials 2012 7 See also 8 References 9 Further reading 10 External links

[edit]History [edit]19081959

Maratha Maharaja Sayajirao Gaekwad III, the founder of Bank of Baroda

In 1908, Maharaja Sayajirao Gaekwad III, one of the knights of the Maratha Kingdom, set up the Bank of Baroda (BoB).[10] Two years later, BoB established its first branch inAhmedabad. 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 Indians in 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 Dar-es-Salaam. Then in 1957 BoB took a giant step abroad by establishing a branch in London. London was the center of the British Commonwealth and the most important international banking centre. 1959 saw BoB complete its first domestic acquisition when it took over Hind Bank.

[edit]1960s

In 1961, BoB merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra. BoB also opened a branch in Fiji. The next year it opened a branch in Mauritius. Bank of Baroda In 1963, BoB acquired Surat Banking Corporation in Surat, Gujarat. The next year BoB acquired two banks: Umbergaon Peoples Bank in southernGujarat and Tamil Nadu Central Bank in Tamil Nadu state. In 1965, BoB opened a branch in Guyana. That same year BoB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistani War of 1965. It is unclear when BoB had opened the branch. In 1967 it suffered a second loss of branches when the Tanzanian government nationalised BoBs three branches there (Dar es Salaam, Mwanga, and Moshi), and transferred their operations to the Tanzanian government-owned National Banking Corporation. In 1969 the Indian government nationalised 14 top banks, including BoB. BoB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest.

[edit]1970s
In 1972, BoB acquired Bank of Indias operations in Uganda. Two years later, BoB opened a branch each in Dubai and Abu Dhabi. Back in India, in 1975, BoB acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) andNainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand state. International expansion continued in 1976 with the opening of a branch in Oman and another in Brussels. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a major center fordiamond cutting. Two years later, BoB opened a branch in New York and another in the Seychelles. Then in 1979, BoB opened a branch in Nassau, the Bahamas.

[edit]1980s
In 1980, BoB opened a branch in Bahrain and a representative office in Sydney, Australia. BoB, Union Bank of India and Indian Bankestablished IUB International Finance, a licensed deposit taker, in Hong Kong. Each of the three banks took an equal share. Eventually (in 1998), BoB would buy out its partners. A second consortium or joint-ventrue bank followed in 1985. BoB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established Indo-Zambia Bank in Lusaka. That same year BoB also opened an Offshore Banking Unit (OBU) in Bahrain. Back in India, in 1988, BoB acquired Traders Bank, which had a network of 34 branches in Delhi.

[edit]1990s

In 1990, BoB opened an OBU in Mauritius, but closed its representative office in Sydney. The next year BoB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&Ss branch had been established before 1970 and Union Banks after 1980. The Reserve Bank of India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and subsequent losses. Then in 1992 BoB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange. The next year, BoB closed its OBU in Bahrain. In 1996, BoB Bank entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, owning 66% of the bank's equity. In 1997, BoB opened a branch in Durban. The next year BoB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a response to regulatory changes following Hong Kongs reversion to the Peoples Republic of China. The now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license bank. BoB also acquired Punjab Cooperative Bank in a rescue. BoB incorporate wholly owned subsidiary BOB Capital Markets Ltd. for broking business. In 1999, BoB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. In Guyana, BoB incorporated its branch as a subsidiary, Bank of Baroda Guyana. BoB added a branch in Mauritius and closed its Harrow Branch in London.

[edit]2000s
2000: BoB established Bank of Baroda (Botswana). 2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank of Indias request. BSB was established in 1946 but traced its origins back to 1871 and its function as the treasury office of the Benares state. In 1964, BSB had acquired Bareilly Bank (est. 1934), with seven branches; it also had taken over Lucknow Bank in 1968. The acquisition of BSB brought BoB 105 new branches.

2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE). 2003: BoB opened an OBU in Mumbai. 2004: BoB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing a subsidiary in Dar-es-Salaam. BoB also opened a representative office each in Kuala Lumpur, Malaysia, and Guangdong, China.

2005: BoB built a Global Data Centre (DC) in Mumbai for running its centralised banking solution (CBS) and other applications in more than 1,900 branches across India and 20 other counties where the bank operates. BoB also opened a representative office in Thailand.

2006: BoB established an Offshrore Banking Unit (OBU) in Singapore. 2007: In its centenary year, BoBs total business crossed 2.09 trillion (short scale), its branches crossed 1000, and its global customer base 29 million people.

2008: BoB opened a branch in Guangzhou, China (02/08/2008) and in Kenton, Harrow United Kingdom. BoB opened a joint venture life insurance company with Andhra Bank and Legal and General (UK) called IndiaFirst Life Insurance Company.

[edit]2010s
In 2010, Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. That same year, BoB also opened a branch in New Zealand. In 2011, BoB opened an Electronic Banking Service Unit (EBSU) was opened at Hamriya Free Zone, Sharjah (UAE). It also opened four new branches in existing operations in Uganda, Kenya (2), and Guyana. BoB closed its representative office in Malaysia in anticipation of the opening of its consortium bank there. BoB received In Principle approval for the upgrading of its representative office in Australia to a branch. The Malaysian consortium bank, India International Bank Malaysia (IIBM), finally opened in Kuala Lumpur, which has a large population of Indians. BOB owns 40%, Andhra Bank owns 25%, and IOB the remaining 35% of the share capital. IIBM seeks to open five branches within its first year of operations in Malaysia, and intends to grow to 15 branches within the next three years.

[edit]Subsidiaries
BOB Capital Markets (BOBCAPS) is a SEBI-registered investment banking company based in Mumbai, Maharashtra.[11] It is a wholly owned subsidiary of Bank of Baroda.[12] Its financial services portfolio includes Initial Public Offerings, private placement of debts, corporate restructuring, business valuation, mergers and acquisition, project appraisal, loan syndication, institutional equity research, and brokerage.

[edit]International

presence

In its international expansion, the Bank of Baroda followed the Indian diaspora, especially that of Gujaratis. The Bank has 100 branches/offices in 24 countries including 61 branches/offices of the bank, 38 branches of its 8 subsidiaries and 2 representative offices in Thailand and Australia. The Bank of Baroda has a joint venture in Zambia with 16 branches.[13] Among the Bank of Barodas overseas branches are ones in the worlds major financial centers (e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well as a number in other countries. The bank is engaged in retail banking via the branches of subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans to upgrade its representative office in Australia to a branch and set up a joint venture commercial bank in Malaysia. It has a large presence in Mauritius with about nine branches spread out in the country.[14]

The Bank of Baroda has received permission or in-principle approval from host country regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing operations in the United Kingdom, the United Arab Emirates, and Botswana. The tagline of Bank of Baroda is "India's International Bank". Bank of Baroda

[edit]Affiliates
IndiaFirst Life Insurance Company is a joint venture between two of Indias public sector banks Bank of Baroda (44%) and Andhra Bank (30%), and UKs financial and investment company Legal & General(26%).[1] It was incorporated in November 2009 and has its headquarters in Mumbai.[1] The company started strongly, achieving a turnover in excess of Rs. 2 billion in its first four and half months, and being recommended for ISO certification within 7 months.[2][3][4][5]

[edit]Baroda

Manipal postgraduate diploma in banking and finance

Bank of Baroda and Manipal University have established the Baroda Manipal School of Banking, which offers a Postgraduate Diploma in Banking & Finance (PGDBF) from Manipal University.[15] Entry will require passing a written test and a subsequent group discussion and personal interview.[16] Successful graduates will join Bank of Baroda as management trainees or specialist officers.

[edit]Bank

of Baroda financials 2012

Sales Rs. 24,695 crores Profits Rs. 5,006 crores Assets Rs. 3,58,397 crores

[edit]See

also

Indian banking IndiaFirst Life Insurance company[IndiaFirst Life Insurance Co Ltd. http://www.indiafirstlife.com] H. H. Sayajirao Gaekwad List of banks in India Baroda Bank of Baroda (Uganda)

IndiaFirst Life Insurance Company

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IndiaFirst Life Insurance Company Ltd.

Type

Joint Venture

Industry

Life Insurance

Founded

2009

Headquarters

Mumbai, Maharashtra, India

Key people

Dr.P. Nandagopal
(MD & CEO)

Products

Individual and Group Insurance Plans

Services

Life Insurance Health Insurance Financial Planning Savings and Investments Retirement Planning

Website

IndiaFirst Life Insurance Co. Ltd.

IndiaFirst Life Insurance Company is a life insurance company in India. It is a joint venture between two of Indias public sector banks Bank of Baroda (44%) and Andhra Bank (30%), and UKs financial and investment company Legal & General(26%).[1] . It was incorporated in November, 2009. It has its headquarters in Mumbai.[1] IndiaFirst Life made more than Rs. 200 crores in turnover in just four and half months since the

insurance company became operational.[2][3][4] IndiaFirst Life insurance company is headquartered in Mumbai. IndiaFirst is the first life insurance company to be recommended for ISO certification within 7 months of inception.[5] The company is headed by the MD & CEO Dr. P. Nandagopal.
Contents
*hide+

1 Products 2 Business model 3 References 4 External links

[edit]Products
IndiaFirst Life Insurance sells insurance plans, including life insurance, investment funds, and group policies. The companys product range covers protection (term insurance), savings, education and retirement. It has a range of group insurance products in forms of credit, life, term and employee liability (gratuity and leave encashment) plans as well. They have recently introduced a range of health, pension and wealth accumulation plans.

[edit]Business

model

IndiaFirst Life Insurance follows the Bancassurance (Bank Insurance Model) using the existing customer base of the promoter banks.[6] It has over 4800 promoter bank branches, in 1000 cities and towns in India. As of December, 2011 the company has 1200 plus employees. [7]

BANK ACCOUNT A bank account is a financial account between a bank customer and a financial institution. A bank account can be a deposit account, a credit card, or any other type of account offered by a financial institution. The financial transactions which have occurred within a given period of time on a bank account are reported to the customer on a bank statement and the balance of the account at any point in time is the financial position of the customer with the institution. a fund that a customer has entrusted to a bank and from which the customer can make withdrawals.
Contents
[hide]

1 Account types 2 Types of accounts 3 Neutral Consumer Information

3.1 Canada

4 Notes and references 5 See also

[edit]Account

types

Bank accounts may have a positive, or credit balance, where the bank owes money to the customer; or a [1] negative, or debit balance, where the customer owes the bank money. Broadly, accounts opened with the purpose of holding credit balances are referred to as deposit accounts; whilst accounts opened with the purpose of holding debit balances are referred to as loan accounts. Some accounts can switch between credit and debit balances. Some accounts are categorized by the function rather than nature of the balance they hold, such as savings account. All banks have their own names for the various accounts which they open for customers.

Types of accounts
Deposit account Checking account Current account Personal account Transaction deposit Demat account Savings Account Individual Savings Account Time deposit / certificate of deposit Tax-Exempt Special Savings Account Tax-Free Savings Account Money market account Other accounts Loan account Joint account Low-cost account Nostro and vostro accounts Numbered bank account Negotiable Order of Withdrawal account

Chart of accounts
From Wikipedia, the free encyclopedia

A chart of accounts (COA) is a created list of the accounts used by a business entity to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity.

The list can be numerical, alphabetic, or alpha-numeric. The structure and headings of accounts should assist in consistent posting of transactions. Each nominal ledger account is unique to allow its ledger to be located. The list is typically arranged in the order of the customary appearance of accounts in the financial statements, balance sheet accounts followed by profit and loss accounts.

Nomenclature, classification and codification

Each account in the chart of accounts is typically assigned a name and a unique number by which it can be identified. (Software for some small businesses may not require account numbers.) Account numbers are often five or more digits in length with each digit representing a division of the company, the department, the type of account, etc. As you will see, the first digit might signify if the account is an asset, liability, etc. For example, if the first digit is a "1" it is an asset. If the first digit is a "6" it is an operating expense. A gap between account numbers allows for adding accounts in the future. The following is a partial listing of a sample chart of accounts. [edit]International

aspects and accounting information interchange Charts of accounts and tax harmonisation issues
Most countries have no national standard charts of accounts, public or privately organised, and improvisation is the case. In many countries there are general guidelines, and in France the guidelines have been codified in law. Sweden has a very well developed standard chart of accounts, the branch organisation BAS chart has existed for several decades, making Sweden an exception to the improvisional rule. Sweden's standardized chart of accounts is also related to the income tax coding (SRU) of the Swedish tax authority. Differences in the Chart of accounts breakdown and meanings between countries represents a much bigger compatibility problem for accounting and financial information interchange between cultures, than physical file format. To a large extent, charts of accounts are a mirror of the tax legislation and governmental taxation reports. Different Tax regulations (lack of harmonisation of law) also make huge differences in the actual content of accounting and financial report information between countries. The EU commission has spent a great deal of effort on administrative tax harmonisation, and this harmonization is the main focus of the latest version of the EU VAT directive, which aims to achieve better harmonization and support electronic trade documents, such as electronic invoices used in cross border trade, especially within the European Union Value Added Tax Area. However, there is still a great deal to be done to realize a standard chart of accounts and international accounting information interchange structure. [edit]Trial

Balance

The trial balance is a list of the active general ledger accounts with debit and credit balances. A balanced trial balance does not guarantee that there are no errors in the nominal ledger entries.

[edit]Types

of accounts

1. Asset accounts: represent the different types of economic resources owned or controlled by business, common examples of Asset accounts are cash, cash in bank, building, inventory, [1] prepaid rent, goodwill, accounts receivable 2. Liability accounts: represent the different types of economic obligations by a business, such as [citation needed] accounts payable, bank loan, bonds payable, accrued interest. 3. Equity accounts: represent the residual equity of a business (after deducting from Assets all the [citation needed] liabilities) including Retained Earnings and Appropriations. 4. Revenue accounts or income: represent the company's gross earnings and common examples [citation needed] include Sales, Service revenue and Interest Income. 5. Expense accounts: represent the company's expenditures to enable itself to operate. Common examples are electricity and water, rentals, depreciation, doubtful accounts, interest, [citation needed] insurance. 6. Contra-accounts: Some balance sheet items have corresponding contra accounts, with negative balances, that offset them. Examples are accumulated depreciation against equipment, and allowance for bad debts against long-term notes receivable. [edit]Example [edit]US

GAAP Simple Chart of Accounts

[edit]Group headings Revenue Cost of Goods Sold SG&A Establishment Expenses Interest Expenses Administration Expenses

Within each of these headings will be the individual nominal ledger accounts that make up the chart of accounts. E.g. establishment expenses may consist of rent, rates, repairs, and so on.

[edit]Balance Sheet Accounts

[edit]Asset Accounts
101 Cash - (Cash On Hand) 102 Bank Accounts 103 Accounts Receivable (Debtors) 104 Prepaid Expenses 105 Inventory (Stock On Hand) 106 Buildings

[edit]Liability Accounts
201 Accounts Payable (Creditors) 206 Credit Cards 210 Tax Payable 220 Employment Expenses Payable 250 Bank Loans 270 Accrued Expense

107 Accumulated Depreciation On Buildings [edit]Stockholders' Equity Accounts 108 Vehicles & Equipment 109 Investments & Stocks 110 Other Assets 111 Accrued Income 300 Common Stock (Share Capital), 350 Retained Earnings (Revenue Reserves), 360 Dividends 370 Drawings

[edit]Profit & Loss accounts

[edit]Revenue Accounts
400 Sales Revenue 401 Sales Returns & Allowances (Contra account) 402 Sales Discounts (Contra account) 420 Interest Income (Non-Operating Revenue)

[edit]Expense Accounts
601 Advertising Expense 605 Bank Fees 606 Audit Fees 610 Client Expense 620 Depreciation Expense 630 Training Expense 640 Payroll Expense 645 Sales & Dist. Expense 646 Rental Expense 650 Income Tax Expense 655 Information Technology Expense 660 Insurance Expense 670 Office Expense 675 Utilities Expense 677 Maintenance - Vehicle 685 Legal Expense

[edit]Cost of Goods Sold Accounts

5000 Purchases (Beginning Inventory + Purchases - Ending Inventory) 5001 Purchase Returns & Allowances (Contra Account)

690 Personnel Benefits' Expenses

695 Communication Expense 696 Travelling & Conveyance

A deposit account is a savings account, current account, or other type of bank account, at abanking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liabilityfor the bank and represents the amount owed by the bank to the customer. Some banks may charge a fee for this service, while others may pay the customer interest on the funds deposited.

Major types
Checking accounts A deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. Because money is available on demand these accounts are also referred to as demand accounts or demand deposit accounts, except in the case of NOW Accounts. Money market account A deposit account that pays interest, and for which short notice (or no notice) is required for withdrawals. In the United States, it is a style of instant access deposit subject to federal savings account regulations, such as a monthly transaction limit. Savings accounts

Accounts maintained by retail banks that pay interest but can not be used directly as money (for example, by writing a cheque). Although not as convenient to use as checking accounts, these accounts let customers keep liquid assets while still earning a monetary return. Time deposit

A money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time. When the term is over it can be withdrawn or it can be rolled over for another term. Generally speaking, the longer the term the better the yield on the money. Call deposit

A deposit account which allows to withdraw the money without penalty, mostly without notification to the bank. Often it bears favourable interest rate, but also a minimum balance to take advantage of the benefits
[1]

A transactional account is a deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. Transactional accounts are meant neither for the purpose of earning interest nor for the purpose of savings, but for convenience of the business or personal client; hence they tend not to bear interest. Instead, a customer can deposit or withdraw any amount of money any number of times, subject to availability of funds.

Features and access

All transactional accounts offer itemized lists of all financial transactions, either through a bank statement or a passbook. A transactional account allows the account holder to make or receive payments by:

ATM cards (withdraw cash at any Automated Teller Machine) Debit card (cashless direct payment at a store or merchant) cash money (coins and banknotes) cheque and money order (paper instruction to pay) direct debit (pre-authorized debit) Electronic funds transfers (transfer funds electronically to another account) giro (funds transfer, direct deposit) standing order (automatic funds transfer) SWIFT: International account to account transfer. Online banking (transfer funds directly to another person via internet banking facility)

[edit]

Current accounts
A current account is the form of transactional account found in the United Kingdom and other countries with a UK banking heritage; a current account offers various flexible payment methods to allow customers to distribute money directly to others. Most current accounts come with a cheque book and offer the facility to arrange standing orders, direct debits and payment via a debit card. Current accounts may also allow borrowing via an overdraft facility.

A personal account is an account for use by an individual for that person's own needs. It is a relative term to differentiate them from those accounts for corporate or business use. The term "personal account"

may be used generically for financial accounts at banks and for service accounts such as accounts with the phone company, or even for e-mail accounts.

In the United States, transactions deposit is a term used by the Federal Reserve for checkable deposits and other accounts that can be used directly as cash without withdrawal limits or restrictions. They are the only bank deposits that require the bank to keepreserves at the central bank. This is in contrast to "time deposits" (aka term deposits).

In a 'demat account' , shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the demat account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed.

Advantages of demat
A demat account also helps avoid problems typically associated with physical share certificates, for example: delivery failures caused by signature mismatch, postal delays and loss of certificate during transit. Further, it eliminates the risks associated with forgery and due to damaged stock certificates. Demat account holders also avoid stamp duty (as against 0.5 per cent payable on physical shares) and filling up of transfer deeds.In India it is coming gradually. [edit]Goal

of Demats System

India adopted the Demat System for electronic storing, wherein shares and securities are represented and maintained electronically, thus eliminating the troubles associated with paper shares. After the introduction of the depository system by the Depository Act of 1996, the process for sales, purchases and transfers of shares became significantly easier and most of the risks associated with paper certificates were mitigated. [edit]Demat

benefits
[by whom?]

The benefits of demat are enumerated

as follows:

Easy and convenient way to hold securities Immediate transfer of securities No stamp duty on transfer of securities Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated) Reduced paperwork for transfer of securities Reduced transaction cost No "odd lot" problem: even one share can be sold

Change in address recorded with a DP gets registered with all companies in which investor holds securities eliminating the need to correspond with each of them separately. Transmission of securities is done by DP, eliminating the need for notifying companies. Automatic credit into demat account for shares arising out of bonus/split, consolidation/merger, etc. A single demat account can hold investments in both equity and debt instruments. Traders can work from anywhere (e.g. even from home).

Benefit to the company The depository system helps in reducing the cost of new issues due to lower printing and distribution costs. It increases the efficiency of the registrars and transfer agents and the secretarial department of a company. It provides better facilities for communication and timely service to shareholders and investors. Benefit to the investor The depository system reduces risks involved in holding physical certificates, e.g., loss, theft, mutilation, forgery, etc. It ensures transfer settlements and reduces delay in registration of shares. It ensures faster communication to investors. It helps avoid bad delivery problems due to signature differences, etc. It ensures faster payment on sale of shares. No stamp duty is paid on transfer of shares. It provides more acceptability and liquidity of securities. Benefits to brokers It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of trading. It eliminates chances of forgery or bad delivery. It increases overall trading and profitability. It increases confidence in their investors.

Saving accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money in the narrow sense of a medium of exchange (for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be callable immediately and in some jurisdictions, does not incur a reserve requirement, freeing up cash from the bank's vault to be lent out with interest. The other major types of deposit account are transactional account (checking account orcurrent account by country), money market account, and time deposit.

An Individual Savings Account (ISA; /as/) is a financial product available to residents of the United Kingdom. It is designed for the purpose of investment and savings with a favourable tax status. Money is contributed from after tax income and not subjected to income tax or capital gains tax within a holding or upon withdrawal. Cash and a broad range of investments can be held and there is no restriction on when or how much money can be withdrawn. Funds can not be used as security for a loan. It is not a pension product but can be a useful complement to a pension for retirement income, particularly when it is desirable to draw down capital at a faster rate than permitted in a pension.

A time deposit (also known as a certificate of deposit in the United States, a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom; Fixed Depositsin India and in some other countries) is a money deposit at a banking institution that cannot be withdrawn for a certain [citation needed] "term" or period of time (unless a penalty is paid) . When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. In its strict sense, certificate deposit is different from that of time deposit in terms of its negotiability: CDs are negotiable and can be rediscounted when the holder needs some liquidity, while time deposits must be kept until maturity. The opposite, sometimes known as a sight deposit or "on call" deposit, can be withdrawn at any time, without any notice or penalty: e.g., money deposited in a checking account or savings account in a bank. The rate of return is higher than for savings accounts because the requirement that the deposit be held for a prespecified term gives the bank the ability to invest it in a higher-gain financial product class. However, the return on a time deposit is generally lower than the long-term average of that of investments in riskier products like stocks or bonds. A deposit of funds in a savings institution is made under an agreement stipulating that (a) the funds must be kept on deposit for a stated period of time, or (b) the institution may require a minimum period of notification before a withdrawal is made. "Small" time deposits are defined in the U.S. as those under $100,000, while "large" ones are $100,000 or greater in size. The term "jumbo CD" is commonly used in the United States to refer to large time deposits. In the U.S., banks are not subject to a reserve requirement against their time deposit holdings.

A certificate of deposit (CD) is a time deposit, a financial product commonly offered to consumers in the United States by banks, thrift institutions, and credit unions. CDs are similar to savings accounts in that they are insured and thus virtually riskfree; they are "money in the bank". CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks and by the National Credit Union Administration (NCUA) for credit unions. They are different fromsavings accounts in that the CD has a specific, fixed term (often monthly, three months, six months, or one to five years), and, usually, a fixed interest rate. It is intended that the CD be held untilmaturity, at which time the money may be withdrawn together with the accrued interest. In exchange for keeping the money on deposit for the agreed-on term, institutions usually grant higher interest rates than they do on accounts from which money may be withdrawn on demand, although this may not be the case in an inverted yield curve situation. Fixed rates are common, but some institutions offer CDs with various forms of variable rates. For example, in mid-2004, interest rates were expected to rise, many banks and credit unions began to offer CDs with a "bump-up" feature. These allow for a single readjustment of the interest rate, at a time of the consumer's choosing, during the term of the CD. Sometimes, CDs that are indexed to the stock market, the bond market, or other indices are introduced. A few general guidelines for interest rates are: A larger principal should receive a higher interest rate, but may not.

A longer term will usually receive a higher interest rate, except in the case of an inverted yield curve (i.e. preceding a recession) Smaller institutions tend to offer higher interest rates than larger ones. Personal CD accounts generally receive higher interest rates than business CD accounts. Banks and credit unions that are not insured by the FDIC or NCUA generally offer higher interest rates.

In the UK, the tax-exempt special savings account (TESSA) was one of a number of tax-free savings accounts. The TESSA was announced by John Major in his only budget as Chancellor of the Exchequer in 1990 (a budget for savings). The TESSA was intended to be a low-risk complement to the personal equity plan (PEP) which would be attractive to a wider range of savers. The Tax-Free Savings Account (TFSA) is an account that provides tax benefits for saving in Canada. Contributions to a TFSA are not deductible for income tax purposes. Investment income, including capital gains and dividends, earned in a TFSA is not taxed, even when withdrawn.

In finance, a loan is a debt evidenced by a note which specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in anannuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.

Types of loans
[edit]Secured See also: Loan guarantee A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral. A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer. [edit]Unsecured Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages: credit card debt personal loans bank overdrafts credit facilities or lines of credit corporate bonds (may be secured or unsecured)

The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974. Interest rates on unsecured loans are nearly always higher than for secured loans, because an unsecured lender's options for recourse against the borrower in the event of default are severely limited. An unsecured lender must sue the borrower, obtain a money judgment for breach of contract, and then pursue execution of the judgment against the borrower's unencumbered assets (that is, the ones not already pledged to secured lenders). In insolvency proceedings, secured lenders traditionally have priority over unsecured lenders when a court divides up the borrower's assets. Thus, a higher interest rate reflects the additional risk that in the event of insolvency, the debt may be uncollectible. [edit]Demand Demand loans are short term loans that are atypical in that they do not have fixed dates for repayment and carry a floating interest rate which varies according to the prime rate. They can be "called" for repayment by the lending institution at any time. Demand loans may be unsecured or secured. [edit]Subsidized A subsidized loan is a loan on which the interest is reduced by an explicit or hidden subsidy. In the context of college loans in theUnited States, it refers to a loan on which no interest is accrued while a [2] student remains enrolled in education. Otherwise, it may refer to a loan on which an artificially low rate of interest (or none at all) is charged to the borrower. An unsubsidized loan is a loan that gains interest at a market rate from the date of disbursement
[1]

Loan payment
The most typical loan payment type is the fully amortizing payment in which each monthly rate has the same value over time.[4]

The fixed monthly payment P for a loan of L for n months and a monthly interest rate c is:

[edit]

Joint account is a bank account shared by two or more individuals. Any individual who is a member of the joint account can withdraw from the account and deposit to it. Usually, joint accounts are shared between close relatives or business partners. Joint accounts are often created in order to avoid probate. If two individuals open a joint account and one of them dies, the other person is entitled to the remaining balance and liable for the debt of that account. Sometimes a temporary joint account is opened by two parties entering into a transaction where one party needs a security for the fulfilment of the transaction and the other party has to pay the sum (deposit), being the security for the other party. Any payment from the joint account, or return of the deposit from the joint account, will only be possible if both parties sign a joint written instruction to the [citation bank. It is not possible that only one of the parties gives instruction for payments of the joint account.
needed] [1]

Because (European) banks are not very interested in opening temporary joint accounts, as they are normally used for one transaction only, there are specialised parties or companies taking care of such accounts as trustees. A temporary joint account is normally closed after the transaction for which it was opened has been concluded. Temporary joint accounts are used in transactions in which large sums of [citation needed] money are involved as an alternative to letters of credit or escrow accounts.

A low-cost account is a Canadian bank account that costs $4 or less per month. In February 2001, an [1] agreement was reached with the Canadian federal government, which involved eight of Canada's major banks offering low-cost accounts to consumers, ensuring that every person has affordable banking. The accounts have benefits that include free deposits, a free debit card, cheques, free monthly statements, [2] and up to 15 transactions per month.

Telephone banking is a service provided by a financial institution, that enables customers of the financial institution to performfinancial transactions over the telephone, without the need to visit a bank branch or automated teller machine. Telephone banking times can be longer than branch opening times, and some financial institutions offer the service on a 24 hour basis. From the bank's point of view, telephone banking reduces the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. To use a financial institution's telephone banking facility, a customer must first register with the institution for the service, and set up some password (under various names) for customer verification. The password for telephone banking is normally not the same as foronline banking. Financial institutions now routinely

allocate customer numbers (also under various names), whether or not customers intend to access their telephone or online banking facility. Customer numbers are normally not the same as account numbers, because a number of accounts can be linked to the one customer number. Customer numbers are also not the same as any card number which may have been issued to the customer by the financial institution. The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. Some financial institutions have restrictions on which accounts may be access via telephone banking. To access telephone banking, the customer would call the special phone number set up by the financial institution, and enter on the keypad the customer number and password. Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To ensure security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative. The types of financial transactions which a customer may transact through telephone banking include obtaining account balances and list of latest transactions, electronic bill payments, and funds transfers between a customer's or another's accounts. Cash withdrawals and deposits requires the customer to visit an automated teller machine or bank branch. A customer may not be able to use telephone banking on particular bank accounts with a financial institution, such as loan accounts, but bank rules vary in this respect.