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I would like to express my gratitude towards Dr. Sumita Srivastava,

Placement Co-ordinator, Department of Management, Faculty of Social
Sciences, Dayalbagh Educational Institute for her guidance and efforts
to help me secure this internship. I am indebted and highly grateful to
I would also sincerely thank the Human Resource Department, Bank of
Baroda headed by Mr. Manoj Bakshi for giving me this opportunity to
learn under such an establishment and provide a medium in the form
of this project to learn and explore my capabilities.
In the end I would like to pay homage to each and every staff member
of Bank of Baroda, Shahganj and thank them from the bottom of my
heart for their co-operation and intent efforts in helping me learn and
develop as a professional and work out this project.

The following document is an accumulation of the learning experience
as a part of my summer internship during the month of June,2015 at
Bank of Baroda, Shahganj. It was a great opportunity to learn, grow
and develop under such an establishment of Bank of Baroda. The
primary objective of this internship was to expose one towards the
dynamics of an organizational working environment, its complexities,
flows and functioning. It served as an opportunity to explore our
knowledge so inculcated over four semesters of study of Business
Management at Dayalbagh Educational Institute. The internship
programme proves to be a platform to manifest our learning to
practice and gain guidance towards our future endeavours.
As a part of the internship I was directed to work towards drawing a
SWOT analysis of the branch where I was stationed while witnessing
day to day operations of the branch and becoming an active part in the
The document initially covers a brief introduction about the
establishment of Bank of Baroda highlighting some of the parameters
which give it a distinctive edge over other organisations. Furthermore,
in order to analyse the branch for its strength, weaknesses,
opportunity and threats I imbibed certain basic methodologies to draw
inferences. The analysis is based on my experience and learning while
working as member of the staff of the branch and have reflected on
reports like audit assessment reports of the bank to highlight certain
essential parameters and have also conducted surveys to capture the
exact feedback of employees and customers.
The workforce or manpower of the branch seems to be the greatest
asset behind the success and continuity of the branch. The dedication
and relentless hardwork of the employees prove to be their strength
abiding by the corporate strategies and objectives of the bank but the
absence of essential infrastructure and inefficient use of technology
and other resources holds the branch on a stagnant growth rate. Being
situated close to a business centre the branch is easily accessible and
has turned out to be exposed to a plethora of opportunities under the
Small and Medium enterprise and retail lending products of the bank.
The branch though facing a stagnant growth and being classified as a
low risk platform is making adequate efforts to accelerate its







It has been a long and eventful journey of almost a century across 25
countries. Starting in 1908 from a small building in Baroda to its new
highly specialised Baroda Corporate Centre in Mumbai, is a saga of
vision, enterprise, financial prudence and corporate governance. Bank
of Baroda has emerged as an establishment of corporate wisdom and
social pride 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
Bank of Baroda is an Indian state-owned banking and financial services
company headquartered in Vadodara (earlier known as Baroda) in
Gujarat, India. It is the second-largest bank in India, after State Bank of
India, and 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 addition to its headquarters in
its home state of Gujarat, it has a corporate headquarters in the
Bandra Kurla Complex in Mumbai.Based on 2014 data, it is ranked 801
on Forbes Global 2000 list. Bank of Baroda has total assets in excess of
3.58 trillion, a network of 5307 branches in India and abroad, and
over 8000 ATMs.
The bank was founded by the Maratha, Maharaja of Baroda, H. H. Sir
Sayajirao Gaekwad III on 20 July 1908 in the Princely State of Baroda,
in Gujarat. The bank, along with 13 other major commercial banks of
India, was nationalised on 19 July 1969, by the Government of India
and has been designated as a profit-making public sector undertaking

Bank of Baroda was one of the early movers in Public Sector Banks to
have tapped the equity market in December 1996. Further the Bank
has come out with a "Follow on Public Offer" in January 2006. The Bank
has also issued equity shares to the Government of India on
Preferential Basis in March 2011, March 2013, January 2014 and March

2015 and to LIC of India in March 2012, pursuant to SEBI (Issue of

Capital and Disclosure Requirements) Regulations, 2009, as amended.
The Government of India holds 57.53% of total paid up equity of the
Bank as on the date. The Bank has reduced the face value of its equity
shares from Rs.10/- each to Rs.2/- each (Rupees TWO Only) by sub
dividing ONE equity share in to FIVE w.e.f. 24th January 2015 (Record
Date being 23rd January 2015). At present, out of the total paid up
equity capital of 221,14,95,906 equity shares of Rs.2/- each fully paid
up, the Public Shareholding is as large as 42.47%, which is held by
Retail Investors, Employees, Banks and Financial Institutions and NRIs,
Mutual Funds, Insurance Companies and Others.

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:
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. Banks BPR project known as Project- Navnirmaan has
altogether 18 activities covering both the BPR and organisational
restructuring, aimed at transforming the Banks 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 industrymen who went on to build other great institutions.

NEW TECHNOLOGY PLATFORM: Bank has made substantial progress

in its end-to-end business and IT strategy project covering the Banks
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 Transactionbased Internet Banking facility for its customers in Uganda, Botswana,

UAE, New Zealand, Kenya, Mauritius and Seychelles, a Viewbased ebanking 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 ArtStraight 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.
Banks constant endeavour 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.


has always upheld inclusive growth high on its agenda. Bank has
established 36 Baroda Swarojgar Vikas Sansthan (Baroda R-SETI) for
imparting training to unemployed youth, free of cost for gainful selfemployment & entrepreneurship skill development and 52 Baroda
Gramin Paramarsh Kendra and for knowledge sharing, problem solving
and credit counselling for rural masses across the country, as on
31.03.2011. Bank has also established 18 Financial Literacy and Credit
Counselling Centres (FLCC) in order to spread awareness among the
rural masses on various financial and banking services and to speed up
the process of Financial Inclusion.

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. Banks constant
endeavour 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.

BANK has an adequate network of branches and offices classified as






Total (Indian)
Foreign (Overseas)
Total (Global)

Zonal Offices
Regional Offices




To be a top ranking National Bank of International Standards
committed to augmenting stake holders' value through concern, care
and competence.

The banks logo is a unique representation of a universal symbol. It
comprises dual B letterforms that hold the rays of the rising sun
called the Baroda Sun.
The sun is an excellent representation of what our bank stands for. It is
the single most powerful source of light and energy its far reaching
rays dispel darkness to illuminate everything they touch. Bank of
Baroda seeks to be the source that will help all their stakeholders
realise their goals. To their customers, they seek to be a one-stop,
reliable partner who will help them address different financial needs. To
their employees, they offer rewarding careers and to our investors and
business partners, maximum return on their investment.
The single-colour, compelling vermillion palette has been carefully
chosen, for its distinctivenes as it stands for hope and energy.
It also recognizes that the bank is characterised by diversity. Their
network of branches spans geographical and cultural boundaries and
rural-urban divides. Their customers come from a wide spectrum of
industries and backgrounds. The Baroda Sun is a fitting face for our
brand because it is a universal symbol of dynamism and optimism it
is meaningful for our many audiences and easily decoded by all.
Their new corporate brand identity is much more than a cosmetic
change. It is a signal that they recognize and are prepared for new
business paradigms in a globalised world. At the same time, they will
always stay in touch with their heritage and enduring relationships on
which the bank is founded. By adopting a symbol as simple and
powerful as the Baroda Sun, they hope to communicate both.

A quite distinctive feature of Bank of Baroda is its HUMAN RESOURCES
and it has Bank of Baroda has the tradition of continuous enrichment
of its human assets so that they deliver value to the business.

In the ongoing Business Transformation Programme, their PEOPLE play

a vital role and are one of the key business enablers. Under its plan of
organizational transformation through people processes and systems,
the Bank has launched various innovative employee centric initiatives
and has also undertaken revamp of key systems and practices.


The Strategic HR Business Model adopted by Bank of Baroda
incorporates its HR Mission and Philosophy and is focused towards
attainment of long-term organizational goals.
A very strong Organizational Leadership at different levels forms the
key link in the Model. These are;
Strategic Leadership - Corporate level
Business Leadership - Zonal & Regional level
Operational Leadership - Business unit level i.e. branch
The two vital Human Resource sub-systems i.e. HR Planning &
Management Sub-System & Competency Based HRD Sub-System
shape the very crucial Performance Environment within the Bank which
facilitates development of enabling capabilities of people. Through
proper developmental inputs, Positive Attitude is created among
people. Through proper Communication Medium and an Organizational
Culture of sharing, openness, collaboration & confrontation, autonomy
etc., people in the organization are facilitated to give their best output
The Model is adequately supported by a suitable Learning Platform,
which imparts proper Knowledge and enhances Learning among people
(functional, behavioural etc) so that their Competence increases and
their potential could be properly leveraged for greater Individual and
Organizational Effectiveness. These create proper Employee
Motivation, which ultimately facilitates Goal Achievement.


To initiate & institutionalise globally competitive HR practices in the

Bank in our pursuit to become a Bank of international standards and to
become an employer of preferred choice;
To put in place relevant HRD strategies and use modern methodologies
to undertake organizational renewal; identify and nurture talent, bring
about marked changes in the mindset of employees at all levels so as
to enhance HR Quality;
To create a performance-driven culture and an exciting workplace for
the employees
To create a pool of entrepreneurial managers and business leaders for
To inculcate a strong and effective sales and service culture across
levels in the organization in order to generate strong stakeholder
To create a learning organization for employees intellectual growth
and creativity; and to re-skill the workforce to operate in digitally
enabled modern core banking environment.

A SWOT analysis of a bank formally evaluates the financial institutions
strengths, weaknesses, opportunities and threats. This analysis
identifies these four main elements to help upper management better
leverage its strengths to take advantage of future business
opportunities while better understanding its operational weaknesses to
combat threats to potential growth. A SWOT analysis can also address
many other scenarios, such as new business initiatives, marketing
budgets or even advertising campaigns.
As a trainee at Bank of Baroda, Shahganj, I resorted to expose myself
and learn about the four parameters of the analysis by taking part in
the day to day workings of the bank. Assisting the employees in their
routine work gave an insight to the working environment of the bank,
drawing inferences about the internal factors contributing to the
strength and weaknesses of the branch revealing the efficiencies and
shortcomings of the management. The routine work involved updating
records, scrutinising accounts, loans and other documents, database
management, dealing with customers to attend to their grievances,
communicating and marketing schemes offered by the branch.
Henceforth I was revealed to the complexities and functioning of
managing a bank branch being a part of the management itself.
To get insights about the external factors influencing the potentials of
the branch I was guided to take references from the Annual Risk Based
Internal Audit report of the branch and making attempts to compare
deviations and improvements over time as well as drawing inferences
from the surrounding factors and strategies of competing banks in the
locality and assessing the feedback of the people i.e. the employees
and the customers through questionnaires samples of which have been
attached herewith.

I am a student of Business Management and would request you to answer the following
questions for the purpose of my training report on SWOT analysis of the Shahganj branch
of Bank of Baroda. The following questionnaire is aimed at assessing your satisfaction from
the services of the bank. The results and inferences are strictly for academic use.
1. Name :
2. Occupation :
3. Annual Income :
4. Do you think that your bank caters all your banking needs?
(a) Yes
(b) No
5. For the past how many years you have account with this bank?

What kind of account do you maintain in this bank?

(c)Loan a/c

(d)Fixed/Recurring deposit

7. Which of the following facilities is given more importance in your bank?

(a)Loan facilities
(b)O/D facilities
(c)ATM facilities
8. Do they charge unnecessarily for not maintain minimum balance in your account?
(a) Yes
(b) No
9. Does your bank offer competitive service charges?
(a) Yes
(b) No
10.Do you think your bank offers competitive interest rate
(a) Yes
(b) No
11.Do you use the service of alternative bank
(a) Yes
(b) No
12.What do you feel about overall service quality of the branch?
(b)Very good


13.Would you recommend this bank to your friends, relatives, associates?

(a) Yes
(b) No
14.When do you think of your bank what comes first in your mind
(a)Personalised service
(b)Wide branch network
(c)Customer service
(d)computerised banking
15.How has your experience been with the employees of the branch?
(a) Pleasant
16.Do you have any advice for the branch to improve its services/operations?



I am a student of Business Management and would request you to answer the following
questions for the purpose of my training report on SWOT analysis of the Shahganj branch
of Bank of Baroda. The following questionnaire is aimed at assessing your experience and
view-point. The results and inferences are strictly for academic use.

1. Name:
2. What is your gender?


3. What is your age?

4. Designation/department:
5. For how long have you been working in this branch of the bank?
6. How can you describe the working environment?

(c)Co-operative and amusing

7. Are you satisfied with the top management?

8. Are you satisfied with your job in terms of salary and growth prospects?
9. Are you equipped with adequate tools and authority to carry out your work effectively and
(a)Strongly agree
(c)Strongly disagree
10.How do rate the performance appraisal and other allied functions of the human resource
(a)Very good
11.Is your works success acknowledged and appreciated?
12. Your Overall Satisfaction as an employee of the branch?
(a)Highly Satisfied
(e)Highly Dissatisfied


Any suggestions to improve the efficiency and effectiveness of the branchs operations.

A SWOT analysis (alternatively SWOT matrix) is a structured planning
method used to evaluate the strengths, weaknesses, opportunities and
threats involved in a project or in a business venture. A SWOT analysis
can be carried out for a product, place, industry or person. It involves
specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and
unfavourable to achieve that objective. Some authors credit SWOT to
Albert Humphrey who led a convention at the Stanford Research
Institute (now SRI International) in the 1960s and 1970s.However,
Humphrey himself does not claim the creation of SWOT, and the
origins remain obscure. The degree to which the internal environment
of the firm matches with the external environment is expressed by the
concept of strategic fit.

Strengths: characteristics of the business or project that give it

an advantage over others.

Weaknesses: characteristics that place the business or project at

a disadvantage relative to others.

Opportunities: elements that the project could exploit to its


Threats: elements in the environment that could cause trouble

for the business or project.
Identification of SWOTs is important because they can inform later
steps in planning to achieve the objective.
First, the decision makers should consider whether the objective is
attainable, given the SWOTs. If the objective is not attainable a
different objective must be selected and the process repeated.
Users of SWOT analysis need to ask and answer questions that
generate meaningful information for each category (strengths,
weaknesses, opportunities, and threats) to make the analysis useful
and find their competitive advantage.
One way of utilizing SWOT is matching and converting. Matching is
used to find competitive advantage by matching the strengths to
opportunities. Converting is to apply conversion strategies to convert

weaknesses or threats into strengths or opportunities. An example of

conversion strategy is to find new markets. If the threats or
weaknesses cannot be converted, a company should try to minimize or
avoid them.


The branch was opened on 29 December 1981, classified as a branch
of a metro area under zonal office of Western Uttar Pradesh and
Uttarakhand, Bareilly. It was equipped with Core Banking Solution
mechanization on 2 December 2006.Currently as in June of 2015 it has
Mr A.K. Gangwar as its chief manager and Mr Pratap Singh as its joint
manager with a vision of financial prudence and corporate governance,
abiding by the organizations ethics and policies cementing the banks


Highly co-operative workforce

with effective interpersonal
Advanced technology like auto
deposit and passbook updating
machines to enhance customer
Robust and reliable IT
framework and CBS
Handles government business.
Effective marketing of banks
Compassionate handling of
Strictly followed business
policies and norms ensuring


Not authorised to deal in Foreign

Exchange Business.
Poor involvement of staff to
achieve corporate goals.
High amount of Non-performing
Stagnant growth and assessed to
be classified as a low risk
Inefficient use of resources.
Absence of essential
infrastructure for smooth

Widening customer base.



Branch located close/within the

business centre.
SME and retail lending
products of the bank are well
suited for the branch by virtue
of its location.
Competitive technological
advances tapping wide
customer base.

Competitive banks nearby

advancing technologically and
strategizing competitive
marketing programs.
Legislations from government and
regulations from the bank.

In the area of strengths, a SWOT analysis should list the areas where
the bank is succeeding and excelling in reaching its goals. These
successes should also be internal components reflective of the banks
physical and human resources. These areas are your critical success
factors and they give your business its competitive advantage.
Identifying these strengths can help makes sure maintaining them so
that one does not lose their competitive advantage. Growing the
business involves finding ways of using and building on these
Effective communication is critical to any organization and can help it
in many ways. In fact, communication plays a role in product
development, customer relations, employee management - virtually
every facet of a business' operations. Employees are a key audience

because they often serve as the conduit to other audiences. If

employees are informed and engaged, communications with other
constituencies are likely to be strong as well. The branch employees
prove to be highly co-operative and earnest in handling routine
activities and grievances and work as a team to achieve corporate
goals and rightfully turn out to be the greatest asset to the bank.
Technology is an integral part of banking. Right from sourcing and
acquiring the customer to servicing and delighting the customer, bank
depends upon technology. Technology needs to be leveraged to make
the Banks routine operations cost-effective. To achieve this, the Bank
has engaged the services of McKinsey & Co. to advise it on Business
Process Re-engineering and Organizational Restructuring so that its
branches can devote maximum time to sales and marketing functions
and handle the newly acquired business in an effective manner. The
newly created robust technology platform would also facilitate
supervision and control and building up of rich management
information system to aid the business decision making.
The branch has a reliable, robust and secure IT framework. Adhering to
the banks initiatives focused on customers the branch keeps up to
provide state of art technology complemented with human interface.
Initiatives offered by the bank are: Enterprise wide General Ledger,
Risk Management, Anti-Money Laundering, Cheque Truncation, Credit
Cards, Mutual Funds, On-line Trading, Data Warehousing, Customer
Relationship Management, , RTGS, NEFT, Internet Payment gateway, ,
Cash Management, Mobile Banking, SMS delivery, Retail Depository,
Phone Banking, Risk Management, Knowledge Management etc. which
are well integrated and provide a seamless experience to customers of
all segments and lines of business.

The branch is strict on regulations in cash management following the

prescribed security norms for inward and outward cash remittance and
the Clean Note Policy of RBI is effectively followed wherein branch does
not accept notes in stapled conditions, notes withdrawn from
circulation are segregated as non-issuable notes, mutilated/soiled
notes are not held for long period. Periodical counting and verifications
are carried out and cash transactions are conducted as per the
stipulated timings.

Locker room is located at a place away from the surveillance area,

master keys are handled by authorized officer and certified at the end
of the day.
The General Ledger and Profit and Loss reports are generated regularly
and kept in record. The branch is showing continuous profits but it has
decreased by 19.95% in comparison to last year.
The branch officials are steadfast in service and courteous towards
customers carrying forward an effective grievance redressal
The branch carries out government business in the prescribed formats
in the form of transactions relating to payment of pensions, dearness
relief, public provident fund scheme(1968). Recently the branch
officials have indulged in framing marketing strategies for schemes put
forth by the government namely Pradhan Mantri Jan Dhan Yojana and
allied insurance and loan schemes efficiently achieving the targets
allocated to the branch.
The security norms and other rules and regulations are strictly followed
as follows:
CCTV and security alarms are functioning and an armed guard as
per risk classification is present and all essential notices, boards,
circulars are bilingual/trilingual in display.
Ultraviolet machine is in working condition and is used in
scanning notes/instruments.
All inward and outward bills are scrutinised and recorded with full
KYC norms observed.
Keys/code books/specimen signature books are kept under dual
control and remittance message is authenticated by two
authorised branch officers.
Instruments lodged are duly crossed and kept under lock and key.
Proper records of staff members is maintained in terms of
salaries, leaves and other allowances.
The branch is observing the restrictions on grant of loans and
advances as per Loan Policy Document.


Weaknesses are the characteristics that put your business at a

disadvantage to others. Conducting a SWOT analysis can help you
identify these characteristics and minimise or improve them before
they become a problem. When conducting a SWOT analysis, it is
important to be realistic about the weaknesses in your business so you
can deal with them adequately.
Bank of Baroda is called as Indias International Bank but
unfortunately the Shahganj branch is not authorised to carry out
Foreign Exchange Business activities.
The branchs efforts in rectifying the irregularities mentioned in the
audit reports has been satisfactory.
A Non-performing asset (NPA) is defined as a credit facility in
respect of which the interest and/or installment of Bond finance
principal has remained past due for a specified period of time. NPA is
used by financial institutions that refer to loans that are in jeopardy of
default. Once the borrower has failed to make interest or principle
payments for 90 days the loan is considered to be a non-performing
asset. Non-performing assets are problematic for financial institutions
since they depend on interest payments for income. Troublesome
pressure from the economy can lead to a sharp increase in nonperforming loans and often results in massive write-downs. Banks are
required to classify non-performing assets further into the following
three categories based on the period for which the asset has remained
non-performing and the realisability of the dues:
1. Sub-standard assets: a sub-standard asset is one which has been
classified as NPA for a period not exceeding 12 months.
2. Doubtful Assets: a doubtful asset is one which has remained NPA
for a period exceeding 12 months.
3. Loss assets: where loss has been identified by the bank, internal
or external auditor or central bank inspectors. But the amount has
not been written off, wholly or partly.
According to the Annual Risk Based Internal Audit report the branch
the branch has high amount of non-performing assets worth 92.40
Cash discrepancies (excess/shortage) are noticed and cash is
maintained on higher side, generally in excess of the retention limit of
Rs 12 lakhs.

Cash management register is not maintained/updated properly.

Misplaced token register is not maintained.
The branch fails to efficiently utilise its resources for the records of pins
and ATM cards which are not maintained properly and data is
misplaced. Utilising technological advances can add efficiencies to
such activities compensating for shortage of workforce and pacing
services and customer experiences.
Immediate credit is not extended to customers as per banks
guidelines for outstation cheques and interest is not paid to customers
for delayed collection.
All the staff members are not made aware about the targets they are
involved in achieving under special campaigns.
The branch is assessed to be a low risk undertaking.
Risk management in Indian banks is a relatively newer practice, but
has already shown to increase efficiency in governing of these banks
as such procedures tend to increase the corporate governance of a
financial institution. In times of volatility and fluctuations in the market,
financial institutions need to prove their mettle by withstanding the
market variations and achieve sustainability in terms of growth and
well as have a stable share value. Hence, an essential component of
risk management framework would be to mitigate all the risks and
rewards of the products and service offered by the bank. Thus the need
for an efficient risk management framework is paramount in order to
factor in internal and external risks.
Indian Banks have been making great advancements in terms of
technology, quality, as well as stability such that they have started to
expand and diversify at a rapid rate. However, such expansion brings
these banks into the context of risk especially at the onset of
increasing Globalization and Liberalization. In banks and other financial
institutions, risk plays a major part in the earnings of a bank. The
higher the risk, the higher the return, hence, it is essential to maintain
a parity between risk and return.
The term Risk and the types associated to it would refer to mean
financial risk or uncertainty of financial loss. The Reserve Bank of India
guidelines issued in Oct. 1999 has identified and categorized the
majority of risk into three major categories assumed to be encountered
by banks.
Financial risk

Credit risk: Borrower risk, Industry risk, Portfolio or concentration

Market risk: Interest rate risk, Liquidity rate risk, Currency forex
Non-Financial risk
Operational risk
Strategic risk
Legal and political risk

A SWOT analysis can help you identify opportunities that your business
could take advantage of to make greater profits. Opportunities are
created by external factors, such as new consumer trends and changes
in the market.
Conducting a SWOT analysis will help you understand the internal
factors (your business's strengths and weaknesses) that will influence
your ability to take advantage of a new opportunity. If your business
doesn't have the capability to seize an opportunity but decides to
anyway, it could be damaging. Similarly, if one has the capability to
seize an opportunity and does not, it could also be damaging.

The Micro, Small and Medium Enterprises in Manufacturing and service

sector are defined as under in MSMED ACT, 2006.

Investment in Plant &

Machineries in case of

Investment in
Equipment in case of
Service Sector


Up to Rs. 25/- lacs

Up to Rs.10/- lacs


Above Rs. 25/- lacs and up to

Rs.500/- lacs

Above Rs.10/- lacs and

upto Rs.200/- lacs


Above Rs.500/- lacs and up to

Rs.1000/- lacs

Above Rs.200/- lacs and

up to Rs.500/- lacs

Manufacturing Enterprises i.e. enterprises engaged in the manufacture

or production, processing or preservations of goods with investment in
Plant & Machinery as stated above.
Service Enterprises i.e. Enterprises engaged in providing or rendering
services and whose investment in equipment as specified above.
(Original cost excluding Land & Building and furniture, fittings and
other items not directly related to the service rendered or as may be
notified under the MSMED Act, 2006).
Loans for food and agro processing will be classified under Micro and
Small Enterprises, provided the units satisfy investments criteria
prescribed for Micro and Small Enterprises, as provided in MSMED Act,
The bank has for internal purposes given focused attention to finance
all Commercial enterprises i.e. enterprises which may be outside the
purview of regulatory definition of SME but having turnover up to Rs
150.00 crores and new infrastructure and real estate projects where
the project cost is up to Rs. 50/- crores by treating them as part of
SME segment.
The loans and advances offered by Bank of Baroda for MSME Units can
be used for the basic needs of:
Acquisition of factory, land and construction of building spaces.
Purchase of plant and machinery including lab equipment, testing
equipment, etc.
Meeting working capital requirements, like raw materials, stockin-progress, finished goods and for purchase or discounting of
Temporary additional assistance for meeting the urgent needs of
raw material.
Additional monitory assistance for any eligible purpose.

The Shahganj branch being in the business centre easily accessible by

potential customers has great opportunity to tap customer base under
this scheme.

The branch is equipped with advanced automatic cash deposit and

pass book updating machines which seek to enhance the banks
positioning and provide pleasant experiences to customers building its
brand equity.

Threats are external factors that could cause problems for your
business, such as changes to the market, a competitor's new
advertising campaign, or new government policy. A SWOT analysis can
help you identify threats and ways to counteract them, depending on
your strengths and weaknesses.
A major threat to the branch is the nearby located branches of
competitive banks which have undertaken massive large scale
advertising and marketing activities attracting attention of substantial
amount of the masses.

High amount of Non-performing assets hamper the profitability of the

branch though the branch makes attempts to retrench the dues and
follows adequate actions against defaulters.
Certain regulations implemented by the bank and legislations,
amendments passed by the government often turn out to adversely
affect the operations of the branch and make the banking sector more
competitive as it is seen to have potential for growth in the economy.
Likewise in the Budget of 2014-15 it was proposed that after making
suitable changes to current framework of the banking sector, a
structure will be put in place for continuous authorization of universal
banks in the private sector in the current financial year. RBI will create
a framework for licensing small banks and other differentiated banks.
Differentiated banks serving niche interests, local area banks, payment
banks etc. are contemplated to meet credit and remittance needs of
small businesses, unorganized sector, low income households, farmers
and migrant work force. Following which RBI released the Draft
Guidelines for Licensing of Payments Banks and Draft Guidelines for
Licensing of Small Banks and recently released the names of
undertakings which applied for the same.
A payments bank is a type of non-full service niche bank in India. A
bank licensed as a payments bank can only receive deposits and
provide remittances. It cannot carry out lending activities. This type of
bank is targeted at migrant labourers, low income households, small
businesses, and other unorganised sector entities.
Such advancements of niche marketing would prove to be competitive
for the branch for the small and payment banks would be specialised
to cater to the target market only whereas the branch will have to
rethink its strategies to keep up in the market.

As seen from the audit reports the branch can be said to satisfactorily
functioning mainly because of shortage of resources absence of
essential infrastructure and other contingencies. The branch has a

stagnant growth trend following which it is categorised to be a low risk

platform. With the established reputation of the bank and its officials
i.e. the human resource of the bank being the greatest asset the
branch has a plethora of opportunities to explore in the loan sector of
Small and Medium enterprise as well as retail lending products of the
bank. With its ongoing efforts, financial prudence and corporate
governance the branch has huge prospects of growth.

With the little knowledge and valuable experience of working in such
an organisation I can draw some recommendations which would be
beneficial for the branch, nevertheless the officials at the branch are
already working on the same.
The branch should concentrate for mobilizing qualitative, Small and
Medium enterprise and retail advances.
Target/responsibilities should be fixed for each staff member for
business development assessing the potential of the staff.
Branch should plan strategy for cross selling third party products.
Concentration should be laid on recovery of Non-performing assets.