University of Lucknow

Department of Business and Administration

Principle of Management and Business Ethics Term Paper

On
Baroda Bank

Submitted To
Ms. Anu Kohli
Professor of Principle of Management
MBA Program

Submitted By
Mr. Atiqullah Imran
Student of MBA
First Batch
Acknowledgment:
I would like express my deep gratitude to Ms. Anu Kohli for availing me the opportunity to put
the theory into the practice by writing this assignment.
I would also appreciate the in and out class support of Ms. Anu Kohli for the guidance she
provides me during preparing the assignment and addressing problems in lessons.
Table of Content
1. Vision...................................................................................................................................................2
2. Mission................................................................................................................................................2
3. Company Profile:.................................................................................................................................2
3.1. History.........................................................................................................................................2
3.2. Key Milestones............................................................................................................................2
3.3. Initiatives.....................................................................................................................................3
3.4. Corporate Social Responsibility (CSR) Initiatives..........................................................................4
3.5. Offices and Branches...................................................................................................................5
4. IT Infrastructure and Services..............................................................................................................6
5. Corporate Social Responsibility...........................................................................................................6
6. Values..................................................................................................................................................7
7. Code of Conduct..................................................................................................................................8
General Standards of conduct.............................................................................................................8
Conflict of Interest...............................................................................................................................8
Applicable Laws.................................................................................................................................10
Disclosure Standards.........................................................................................................................10
Use of Bank’s Assets and Resources:.................................................................................................10
Confidentiality and Fair Dealings.......................................................................................................11
8. Ethical Issue.......................................................................................................................................12
9. References.........................................................................................................................................14
Introduction
This assignment is the part of students’ practical work in first semester of MBA course for the
Principle of Management subject.

It illustrates the various aspects of the Baroda Bank that covers the profile of the bank, vision
and missions, core values, history of the bank and finally went through an ethical issue that the
bank has faced and the method how it addressed the issue.

The bank is well known organization that has presence globally and even has various branches
in India, it also well contributed in social responsibility by providing some very valuable services,
it has a particular allocated budget for that.

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 1. Vision

It has been a long and eventful journey of almost a century across 21 countries.
Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech
Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial
prudence and corporate governance.
It is a story scripted in corporate wisdom and social pride. It is a story crafted in
private capital, princely patronage and state ownership. It is a story of ordinary
bankers and their extraordinary contribution in the ascent of Bank of Baroda to the
formidable heights of corporate glory. It is a story that needs to be shared with all
those millions of people - customers, stakeholders, employees & the public at large
- who in ample measure, have contributed to the making of an institution.
2. Mission

To be a top-ranking National Bank of International Standards committed to

augmenting stake holders' value through concern, care and competence.

3. Company Profile:

The company profile has comprised here of five parts 1) history of the company 2)
key milestones 3) initiatives 4) corporate social responsibility initiatives 5) offices
and branches

3.1. History

Bank of Baroda is an Indian state-owned International banking and financial

services company headquartered in Vadodara (earlier known as Baroda) in Gujarat,
India. It is the second largest bank in India, next to State Bank Of India. Its
headquarters is in Vadodara, it has a corporate office in the Mumbai.

The bank was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III
on 20 July 1908. 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 (PSU).
3.2. Key Milestones

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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 (PSU).

1970s
In 1961, BoB merged in New Citizen Bank of India. 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. In 1965, BoB opened a
branch in Guyana. In 1969, the Indian government nationalised 14 top banks
including BoB.
1980s
In 1980, BoB opened a branch in Bahrain and a representative office in Sydney,
Australia. 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.

1980s

In 1992, BoB opened an OBU in Mauritius, but closed its representative office in
Sydney. Then in 1992 BoB incorporated its operations in Kenya into a local
subsidiary. In 1996, BoB Bank entered the capital market in December with an
Initial Public Offering (IPO). In 1997, BoB opened a branch in Durban.

2000s

The bank has three banking offices, two in Gaborone and one in Francistown. BoB
also opened a representative office each in Kuala Lumpur, Malaysia, and
Guangdong, China. 2005 BoB built a Global Data Centre (DC) in Mumbai. 2006 BoB
established an Offshore Banking Unit (OBU) in Singapore. 2008 BoB opened a
branch in Guangzhou, China (02/08/2008) and in Kenton, Harrow United Kingdom.

2010s

In 2010, Malaysia awarded a commercial banking licence to a locally incorporated

bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra

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Bank. 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.

3.3. Initiatives

Bank of Baroda is a pioneer in various customer centric initiatives in the Indian

banking sector. Bank is amongst first in the industry to complete an all-inclusive
rebranding exercise wherein various novel customer centric initiatives were
undertaken along with the change of logo. The initiatives include setting up of
specialized NRI Branches, Gen-Next Branches and Retail Loan Factories/ SME Loan
Factories with an assembly line approach of processing loans for speedy disbursal
of loans.

The major ongoing initiatives of the Bank are detailed below:

 Project Navoday
 People Initiatives
 New Technology Platform
 Marketing Initiatives

3.4. Corporate Social Responsibility (CSR) Initiatives

Bank has a long legacy and tradition of contributing actively to the social and
economic development of the communities in which it operates through various
development activities in the realm of education, health, human welfare and other
social activities. Bank of Baroda always transcends from business interest and
reaches out to weaker section of society, with a view to make a meaningful
difference to them.

Bank helps in importing training to unemployed youth for gainful employment

through our 64 RESETI centres in ten States/UT. Upto 31.03.2020 Baroda RSETIs
have trained 503145 youth out of which 85685 are SC, 111296 ST, 42645 minorities
and 157231 are other backward communities.

Bank has also providing knowledge sharing, problem solving and credit counselling
through our 87 Financial Literacy and Credit Counselling Centres (FLCC). Since
inception 30,94,565 persons have been benefited from the services of FLCCs.

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Bank also undertakes other activities viz. Healthcare, Sanitation, Education/Literacy,
drinking water facility, other eligible activities as listed under Schedule VII of
Companies Act 2013.

During year 2019-20, Bank has made expenditure under CSR in different activities
as under:

Segment Amount (Rs. in Lacs)

Education & Skill Development 402.89

Health & Care 79.57

Socio-Economic Development 64.98

Grand Total 547.44

3.5. Offices and Branches

Head Office
Bank of Baroda
Baroda Bhavan, R C Dutt Road, Alkapuri, Baroda - 390007
Ph : (0265) 2316010
Corporate Centre
Bank of Baroda
Baroda Corporate Centre, Plot No. C-26, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400051
Ph : (022) 6698 5000-04 (PBX)
Fax : (022) 2652 1955
Branch Network (As on 28.02.2021)

Area Branches

Metro 1801

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 Urban 1482

Semi-Urban 2094

Rural 2853

Total Branches (Domestic) 8230

Total Office (Domestic) 255

Foreign (Overseas) Branches/Offices 96

Total (Global) 8581

Controlling Offices (as of 28.02.2021)

Area Branches

Zonal Offices 18

Regional Offices 148

Corporate Office 1

Head Office 1

4. IT Infrastructure and Services

 ATM Network
 ATM-cum-Debit Cards
 Internet Banking
 Rapid Funds2India – an online money transfer service

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  Internet Payment GatewayReal Time Gross Settlement System (RTGS) &
National Electronic Fund Transfer (NEFT)
 SWIFT
 Web-based Lending Process Automation for Corporate and Retail lending
Operations
 On-line Tax Accounting System (OLTAS)
 Electronic Data Interchange (EDI)
 International Operations
 Global Treasury
 Bank’s State-of-the-Art Data Centre
 Green Initiative
 Wide Area Network (WAN) - Networking of Branches, Administrative offices &
Overseas territories
 Corporate Intranet & e-mail
 HRNES & Payroll
 Baroda Cash Management Services (DIGINEXT)
 Information Security
 Investor Services – Shares & Bonds
 Domestic

5. Corporate Social Responsibility

Bank is carrying out CSR activities through RSETIs and FLCC centers and other CSR
activities as Donations and contributing actively to the socio-economic
development through various activities in following areas:

 Skill development through training programs to Youth

 Health care, sanitation, Drinking water facilities, Education/Literacy
 Women empowerment
 Social Welfare/ Economic Development
 Promotion of Digital payment & Others
Amount sanctioned on various CSR activities by BOB (Consolidated) Year wise and
Head wise details of amount sanctioned on various CSR activities is given below:

(Rupees in lakhs)

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 2014- 2015- 2016- 2017- 2018- 2019-
Particulars 15 16 17 18 19 20

Education &
Training 1486.58 1854.13 284.51 1511.96 232.47 402.89

Out of above,
expenditure fo
r RSETIs 1058.68 1724.88 236.96 993.63 22.79 339.94

Health & Care 688.87 317.24 283.18 327.33 211.38 79.57

Women
Welfare/
Empowerment 12.40 9.87 59.07 60.60 50.06 2.00

Social Welfare/
Economic
Development 89.53 89.53 460.34 495.32 1410.79 62.98

Total 2277.38 2641.58 873.31 2395.21 1904.70 547.44

6. Values

The Bank’s Core Values are as under:

Customer
Centricity Our customers interests lie at the core of all our actions

We are ethical and transparent in our words, actions and

Integrity; dealings with all stakeholders

We are resilient in the face of adversity and having faith in

Courage our beliefs.

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 Innovation We create value through new ideas

We strive for continuous improvement in our policies,

Excellence systems, and processes

Passionate We display energy, enthusiasm and commitment towards

Ownership our Bank and we work together for the Bank

7. Code of Conduct

General Standards of conduct

The Bank expects all Directors and members of the Core Management to exercise
good judgement, to ensure the interests, safety and welfare of customers,
employees, and other stakeholders and to maintain a cooperative, efficient,
positive, harmonious and productive work environment and business organization.
The Directors and members of the Core Management while discharging duties of
their office must act honestly and with due diligence. They are expected to act with
that amount of utmost care and prudence, which an ordinary person is expected to
take in his/her own business. These standards need to be applied while working in
the premises of the Bank, at offsite locations where the business is being
conducted whether in India or abroad, at Bank-sponsored business and social
events, or at any other place where they act as representatives of the Bank.

Conflict of Interest
conflict of interest” occurs when personal interest of any member of the Board of
Directors and of the Core Management interferes or appears to interfere in any
way with the interests of the Bank. Every member of the Board of Directors and
Core Management has a responsibility to the Bank, its stakeholders and to each
other. Although this duty does not prevent them from engaging in personal
transactions and investments, it does demand that they avoid situations where a
conflict of interest might occur or appear to occur. They are expected to perform
their duties in a way that they do not conflict with the Bank’s interest such as-

Employment / Outside Employment - The members of the Core Management are

expected to devote their total attention to the business interests of the Bank. They
are prohibited from engaging in any activity that interferes with their performance

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or responsibilities to the Bank or otherwise is in conflict with or prejudicial to the
Bank.

Business Interests - If any member of the Board of Directors and Core Management
considers investing in securities issued by the Bank’s customer, supplier or
competitor, they should ensure that these investments do not compromise their
responsibilities to the Bank. Many factors including the size and nature of the
investment; their ability to influence the Bank’s decisions; their access to
confidential information of the Bank, or of the other entity, and the nature of the
relationship between the Bank and the customer, supplier or competitor should be
considered in determining whether a conflict exists. Additionally, they should
disclose to the Bank any interest that they have which may conflict with the
business of the Bank.

Related Parties - As a general rule, the Directors and members of the Core
Management should avoid conducting Bank’s business with a relative or any other
person or any firm, Company, Association in which the relative or other person is
associated in any significant role. Relatives shall include:

 Spouse

 Father

 Mother (including step-mother)

 Son (including step-son)

 Son’s wife

 Daughter (including step-daughter)

 Father’s father

 Father’s mother

 Mother’s mother

 Mother’s father

 Son’s son

 Son’s son’s wife

 Son’s daughter

 Son’s Daughter’s husband

 Daughter’s husband

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  Daughter’s son

 Daughter’s son’s wife

 Daughter’s daughter

 Daughter’s daughter’s husband

 Brother (including step-brother)

 Brother’s wife

 Sister (including step-sister)

 Sister’s husband

If such a related party transaction is unavoidable, they must fully disclose the
nature of the related party transaction to the appropriate authority. Any dealings
with a related party must be conducted in such a way that no preferential
treatment is given to that party.

In the case of any other transaction or situation giving rise to conflicts of interests,
the appropriate authority should after due deliberations decide on its impact.

Applicable Laws
The Directors of the Bank and Core Management must comply with applicable laws,
regulations, rules and regulatory orders. They should report any inadvertent non-
compliance, if detected subsequently, to the concerned authorities.

Disclosure Standards
The Bank shall make full, fair, accurate, timely and meaningful disclosures in the
periodic reports required to be filed with Government and Regulatory agencies. The
members of Core Management of the Bank shall initiate all actions deemed
necessary for proper dissemination of relevant information to the Board of
Directors, Auditors and other Statutory Agencies, as may be required by applicable
laws, rules and regulations.

Use of Bank’s Assets and Resources:

Each member of the Board of Directors and the Core Management has a duty to
the Bank to advance its legitimate interests while dealing with the Bank’s assets and
resources. Members of the Board of Directors and Core Management are
prohibited from:

 using corporate property, information or position for personal gain;

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  soliciting, demanding, accepting or agreeing to accept anything of value from any
person while dealing with the Bank’s assets and resources;

 acting on behalf of the Bank in any transaction in which they or any of their
relative(s) have a significant direct or indirect interest.
Confidentiality and Fair Dealings
Bank’s Confidential Information
 The Bank's confidential information is a valuable asset. It includes all trade related
information, trade secrets, confidential and privileged information, customer
information, employee related information, strategies, administration, research in
connection with the Bank and commercial, legal, scientific, technical data that are
either provided to or made available to each member of the Board of Directors and
the Core Management by the Bank either in paper form or electronic media to
facilitate their work or that they are able to know or obtain access by virtue of their
position with the Bank. All confidential information must be used for Bank’s
business purposes only.

 This responsibility includes the safeguarding, securing and proper disposal of

confidential information in accordance with the Bank's policy on maintaining and
managing records. This obligation extends to confidential information of third
parties, which the Bank has rightfully received under non-disclosure agreements.

 To further the Bank’s business, confidential information may have to be disclosed to

potential business partners. Such disclosure should be made after considering its
potential benefits and risks. Care should be taken to divulge the most sensitive
information, only after the said potential business partner has signed a
confidentiality agreement with the Bank.

 Any publication or publicly made statement that might be perceived or construed as

attributable to the Bank, made outside the scope of any appropriate authority in the
Bank, should include a disclaimer that the publication or statement represents the
views of the specific author and not the bank.
Other Confidential Information
The Bank has many kinds of business relationships with many companies and
individuals. Sometimes, they will volunteer confidential information about their
products or business plans to induce the Bank to enter into a business relationship.
At other times, the Bank may request that a third party provide confidential
information to permit the Bank to evaluate a potential business relationship with
that party. Therefore, special care must be taken by the Board of Directors and
members of the Core Management to handle the confidential information of others
responsibly. Such confidential information should be handled in accordance with
the agreements with such third parties.

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  The Bank requires that every Director and the member of Core Management,
General Managers should be fully compliant with the laws, statutes, rules and
regulations that have the objective of preventing unlawful gains of any nature
whatsoever.

 Directors and the members of Core Management shall not accept any offer,
payment promise to pay, or authorization to pay any money, gift, or anything of
value from customers, suppliers, shareholders/ stakeholders, etc. that is perceived
as intended, directly or indirectly, to influence any business decision, any act or
failure to act, any commission of fraud, or opportunity for the commission of any
fraud.

Good corporate governance practices

Each member of the Board of Directors and Core Management of the Bank should
adhere to the following so as to ensure compliance with good Corporate
Governance practices.

Dos
 Attend Board meetings regularly and participate in the deliberations and
discussions effectively.

 Study the Board papers thoroughly and enquire about follow-up reports on definite
time schedule.

 Involve actively in the matter of formulation of general policies

 Be familiar with the broad objectives of the Bank and the policies laid down by the
Government and the various laws and legislations.

 Ensure confidentiality of the Bank’s agenda papers, notes and Minutes.

Don’ts
 * Do not interfere in the day to day functioning of the bank

 Do not reveal any information relating to any constituent of the Bank to anyone.

 * Do not display the logo / distinctive design of the Bank on their personal visiting
cards / letter heads.

 * Do not sponsor any proposal relating to loans, investments, buildings or sites for
Bank’s premises, enlistment or empanelment of contractors, architects, auditors,
doctors, lawyers and other professionals etc.

 Do not do anything, which will interfere with and / or be subversive of maintenance

of discipline, good conduct and integrity of the staff.

Waivers

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  Any waiver of any provision of this Code of Conduct for a member of the Bank’s
Board of Directors or a member of the Core Management must be approved in
writing by the Board of Directors of the Bank.

The matters covered in this Code of Conduct are of the utmost importance to the
Bank, its stakeholders and its business partners, and are essential to the Bank's
ability to conduct its business in accordance with its value system.

8. Ethical Issue

On 16 June 2020, an employee of Baroda Bank in Lucknow tweeted of holding a

violent protest in Lucknow and provoking people for the protest. A lady who has
seen the tweet reported this via social media to protect the violence, where the
Bank of Baroda instantly took action prior to filing the case with police and to be
legally registered, parallelly posted the issue on social media in order to assure
people of taking their action.

But the initial problem and the root cause of the issue has emerged from the hiring
process, where the human resource hasn’t taken its full concentration and research
for hiring the employee, the personality test during the recruitment process had
hadn’t done and even during the probationary period the management team
and HR haven’t assessed and appraised the employee which eventually led to such
undesirable action that negatively affected the reputation of the company.

Following the screenshot of the tweet:

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 9. References

https://www.bankofbaroda.in/

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https://twitter.com/bankofbaroda/status/1269160597381214208

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