Success Story of Bank of Baroda

INTRODUCION
Maharajah of Baroda sir Sayajirao Gaikwad founded the Bank on July 20, 1908 in the princely state of Baroda, in Gujarat. Bank of Baroda has total asset in excess of Rs. 1.78 lake Crores or Rs. 1,780bn on network of over 300 branches and offices and about 1000+ ATMs. If offer a wide range of banking product and financial services to corporate and retails customer through a variety of delivery channel and through its specialized subsidiaries and affiliates in the area of investment banking, credit card and asset management. The new logo of bank comprises dual B alphabets holding the sun rays. It is referred as the Baroda sun. Its main aim to be a top ranking national bank of international standard committed to augment stakeholders value through concern, care and competence. Definition:Section 5(b) of the banking companies act, 1949 defines a banking as The accepting for the purpose of lending or investment of deposit of many from the public, repayable on demand or otherwise and withdrawal by cheque, draft or order or otherwise.

Success Story of Bank of Baroda

HISTORY OF BANK OF BARODA

Bank of Baroda was founded by Maharaja Sayajirao Gaikwad of Baroda on July 20, 1908 with a paid up capital of Rs 10 lakes. Since then bank has traversed an eventful and successful journey of almost 100 years. Today, Bank of Baroda has a network of 2737 branches including 39 overseas branches spread over 20 countries. In mid-eighties, the Bank of Baroda diversified into areas of merchant banking, housing finance, credit cards and mutual funds. In 1995 the Bank raised Rs 300 corers through a Bond issue. In 1996 the Bank tapped the capital market with an IPO of Rs 850 cores. Bank of Baroda took the lead in shifting from manual operating systems to a computerized work environment. Today, the Bank has 1918 computerized branches, covering 70% of its network and 91.64% of its business. Bank of Baroda gives high priority to quality service. In its quest for quality, the Bank has secured the ISO 9001:2000 certifications for 15 branches. By end of the 2009-10, the Bank is targeting 54 more branches for this quality certification.

CORPORATE DETAILS
Bank of Baroda India from an organization based on private capital, princely patronage and state ownership, at present is an epitome of enterprise and corporate governance, situated in Mumbai. It was founded by Maharaja Sayajirao Gaekwad in 1908 in Baroda. The new logo of the bank comprises dual B alphabet, holding the sun rays. It is referred as the Baroda Sun.

Success Story of Bank of Baroda

ACTIVITIES:
The general product and services offered by the Bank of Baroda India are: PERSONAL Deposits, Gen-Next Services, retail loans, credit cards, debit cards, Baroda Health, Multi City Cheque, lockers BUSINESS Deposits, loans and advances, Multi City Cheque, BoB money express, Collection services, ECS, lockers CORPORATE Wholesale banking, deposits, loans and advances, appraisal and erchant banking, cash management and remittances INTERNATIONAL NRI services, FCNR (B) loans, offshore banking, export and import finance, international treasury TREASURY Domestic and forex operations RURAL Deposits, priority sector advances, remittances, pension, lockers. Along with the above facilities the Bank of Baroda India also offers some value-added services like Baroda internet/mobile banking, Baroda OMNI, Baroda RemitXpress and Money Transfer Service Scheme.

Success Story of Bank of Baroda

BRAND AMBASSADER

Brand Ambassador Shri Rahul Dravid and Executive Directors, Shri V. Santhanaraman and Shri S.C. Gupta launching the new product - Baroda Gold Coin.

ORGANIZATION
Dr. M. D. Mallya is the Chairman & Managing Director of the Bank of Baroda India. The Bank of Baroda is the fifth largest bank in India. It has total assets in excess of Rs. 1.78 lakh crores, or Rs. 1,780 bn., a network of over 2800 branches and offices, and about 1000+ ATMs. Bank of Baroda offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, credit cards and asset management.

Success Story of Bank of Baroda

OBJECTIVES
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 future; To inculcate a strong and effective sales and service culture across levels in the organization in order to generate strong stakeholder affiliation; 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.

Success Story of Bank of Baroda

HUMAN RESOURCES
Bank of Baroda has the tradition of continuous enrichment of its human asset so that they deliver value to the business. In the ongoing Business Transformation Programme, our 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 a few innovative employee centric initiatives and has also undertaken revamp of key systems and practices.

HR BUSINESS MODEL

Success Story of Bank of Baroda

Success Story of Bank of Baroda

BANK OF BARODA BRANCHES

BRANCH NETWORK (AS ON 02/08/2009) Area No. of Branches Metro 626 Urban 524 Semi-Urban 642 Rural 1092 Total(Indian) 2884 Foreign(Overseas) 76 Total(Global) 2960 CONTROLLING OFFICES Zonal Offices Regional Offices 10 43

HUMAN RESOURCES (STAFF AS OF SEPTEMBER 2006) Officers 13525 Clerks 16497 Sub-Staff 8041 Total 38063

Success Story of Bank of Baroda

ATM / DEBIT CARD SERVICES OF BANK

No. of branches with ATMs No. of networked ATMs No. of VISA ATMs in India for use 250 219 15,000

2009-10 HIGHLIGHTS + Rs. 250,000 Croer Global Business Size + 24%Worldwide Business Growth + Rs. 1435 Crore Net Profit + 33 Million Global Customer Base + 1700 CBS Branches

Success Story of Bank of Baroda

ROLE OF BANK OF BARODA

Kinds of business that can be done : a part from the main business that is listed down under sections 5 (b) of the act, banking companies are allowed to carry on other form of the business that are stated in section 6 of the act. They can be classified as follows:-

OVERVIEW
Bank of Baroda provides banking and financial services to the individual, business, and corporate customers in India and internationally. The company offers various deposit products, including fixed, current, and savings accounts. Its loan portfolio comprises retail loans, credit loans, and debit cards; working capital finance, term finance, SME Gold Card, small business, and traders loan; line of credit, bill finance, MIBOR linked finance, sub-PLR finance, bridge loans, advance against shares, loan against rent receivables, term finance, short term corporate loans, project finance, and infrastructure finance; and agriculture and small scale industries loans. Main function i.e., usual banking activities, Subsidiary function or service.

MAIN FUNCTIONS
The banking companies are permitted to do the following main activity. The borrowing, raising or taking of money. The lending of money with or without security. The granting & issuing of letters of credit of various kinds, travelers cheques etc, The buying, selling & dealing in bullions / species. The buying & selling of foreign exchange including foreign currencies.

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Success Story of Bank of Baroda

The acquiring, holding, issuing on commission, underwriting & dealing in stock, funds, shares, debentures, bonds, securities & investment of all kinds. The purchasing & selling of bonds, scripts etc., on behalf of customer or receiving such securities for safe custody. The providing of sale deposit vaults. The collection & transmission of money and securities. Above all, they are allowed to deal in the following instrument. Bills of exchange, hundies, promissory notes, coupons, draft, bills of lading railways receipt, warrants, debenture, certificates, script & other instrument.

SUBSIDIARY FUNCTIONS
In additional to the above main functions, thanking companies are permitted to render the followings subsidiary services. Acting as agents for individuals, governments etc. Carrying on agency business of any description. Carrying on and transactions every kind of guarantee and indemnity business. Dealings with all or any part of the property and rights of the company. Doing any other business notified by the central government as lawful for a banking company. Acquiring and undertaking the whole or any part of the business of any person or company authorized under this sub-section. Managing, selling and realizing any property which may. Come into its position in satisfaction of any of its claims. Acting as trustees for customers. Contracting, negotiating and issuing public and private lone. The acquisition, construction and alterations of any building if necessary and convenient for the purposes of the company.

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Success Story of Bank of Baroda

KEY DEVELOPMENT
Bank of Baroda Announces Earnings Results for the First Quarter Ended June 30, 2008 07/29/2008 Bank of Baroda announced earnings results for the first quarter ended June 30, 2008. For the quarter, the company reported net profit of INR 3,708.60 million as compared to INR 3,308.40 million for the quarter ended June 30, 2007. Total Income has increased from INR 30,248.00 million for the quarter ended June 30, 2007 to INR 38,063.70 million for the quarter ended June 30, 2008. Bank of Baroda Declares Dividend for Fiscal Year 2008; Plans to Open New Branches 07/28/2008 Bank of Baroda declared a dividend of 80% to its shareholders for the year 2007-08. The bank also announced the AGM's decision to open 190 new branches in India and 10 more overseas branches of the bank during the current year. This would take the total number of BOB branches to 3,000 in the domestic front and 100 in overseas. Bank of Baroda Launches 21 New Branches and Five Retail Loan Factories

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Success Story of Bank of Baroda

DIRECTORS OF BANK OF BARODA

Bank of Baroda announced the roll out of a bouquet of initiatives including opening of 21 new branches and five more retail loan centers. The 21 new branches have been set up in the urban and semi-urban centers across states including Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Gujarat and Bihar. The bank is expanding its operations to more centers which will fuel the overall business growth in the coming months. These apart, the bank opened ten Baroda Grameen Paramarsh Kendras, which are counseling centers specializing in providing assistance to farmers, small entrepreneurs and Self Help Groups (SHGs).

SERVICES OF BANK OF BARODA

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Success Story of Bank of Baroda

Wholesale Banking SME Banking Retail Banking Rural Banking Demat

WHOLESALE BANKING
Bank has identified the following new business segments as a step toward becoming Multi Specialist Bank. Wholesale (Large & Mid Corporates) Urban Retail Small & Medium Enterprises Rural/Agri Business Under Wholesale Banking the corporate customers are identified as Large and Mid corporates. Companies having annual sales turnover of over Rs. 500 crore are classified as Large Corporate and those having annual sales turnover between Rs 100 crore to 500 crore are classified as Mid Corporate. Under Wholesale Banking it has been proposed that Large & Mid Corporate customer of the Bank are located at the identified branches for providing them better services. By locating the Corporates at the identified branches, they would have the following advantages. Single point contact to cater to all the banking requirements of the Corporates. Expeditious decision making and shorter turnaround time. Availability of product specialist who can customize existing products as per the Corporates specific requirements & can also develop new products. Existence of Core Banking Solution facilities & World-class infrastructure.

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Success Story of Bank of Baroda

The Corporate accounts will be served at these branches by the Client Service Team (CST) of competent credit officers.The team will comprise of Relationship Manager Relationship Officer Product Specialist Credit officer (dedicated from Corporate Office) The following are the areas in which Client Service Team can help the Large & Mid Corporate : Trade Finance products Cash Management Products Treasury Products Bridge Loans Syndicated Loans Infrastructure Loans Cross Currency/Interest Rate Swaps Foreign Currency Loans and many more depending upon the needs of the Corporates.

SME BANKING
SME SHORT TERM LOANS PURPOSE: To meet temporary shortfall / mismatch in liquidity, for meeting genuine business requirements only. ENTERPRISES GROUP:

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Success Story of Bank of Baroda

Small and Medium-sized corporates, business and Trading houses (including partnership firms).

ELIGIBILITY CRITERIA Satisfactory credit rating for the last three years Latest Balance Sheet etc. should be available. Satisfactory financial performance in terms of sales / turnover and profits. Negative variance, if any, should not be more than 10%. Satisfactory dealings with the Bank for at least five years.

LOAN AMOUNT: Up to 25% of the existing Fund based Working capital limits (depending on the Credit Rating), subject to a minimum of Rs. 10 Lakhs and maximum of Rs. 250 Lakhs. PERIOD: Not exceeding 180 days minimum 90 days

SECURITY First charge / Equitable mortgage of fixed assets of the company / firm or extension of existing first charge / equitable mortgage of fixed assets, ensuring that there is a minimum asset cover of 1.50. Extension of Charge on current assets for the additional facility ensuring that adequate drawing power is available. Extension of all existing guarantees of Directors / Third party guarantees to cover the additional facility. RATE OF INTEREST: 0.5% below the existing rate on working capital limits

PROCESSING CHARGES: 0.1% of the amount of loan, with a minimum of Rs. 10,000/- and maximum of Rs. 25,000/-.

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Success Story of Bank of Baroda

SME MEDIUM TERM LOANS

PURPOSE: To augment enterprises working capital gap and to help in improvement of current ratio and also for meeting genuine business requirements. The facility will also be available for repayment of secured and unsecured Loans of other banks or institutions, but not for any purpose, which is not related to the enterprises activity. ENTERPRISES GROUP: Small and Medium-sized corporates, business and trading houses (including partnership firms). ELIGIBILITY CRITERIA Satisfactory credit rating for the last three years Latest Balance Sheet etc. should be available. Satisfactory financial performance in terms of Sales/turnover and profits. Negative variance, if any, should not be more than 10%. Debt-equity ratio should not be higher than 2.5:1 and average DSCR should be not less than 1.5:1. Satisfactory dealings with the Bank for at least Three years.

LOAN AMOUNT: Up to 25% of the existing fund based Working capital limits (depending on the Credit Rating), subject to a minimum of Rs. 25 Lakhs and maximum of Rs. 500 Lakhs. PERIOD: Not exceeding 36- months, to be repaid in equal quarterly or half-yearly installments.

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Success Story of Bank of Baroda

SECURITY First charge / Equitable mortgage of fixed assets of the Company / firm or extension of existing first charge/ equitable mortgage of fixed assets, ensuring that there is a minimum asset cover of 1.50 RATE OF INTEREST: 0.5% - 1.0% over the Banks BPLR, only for the additional Loan to be granted under the Scheme. Prepayment penalty of 1%, if loan is prepaid within -24- months of drawdown. PROCESSING CHARGES: 0.1% of the amount of loan, with a minimum of Rs. 25,000/- and maximum of Rs. 50,000/-.

RETAIL BANKING
PERSONAL BANKING SERVICE

THE STRENGTH AND INTEGRITY OF RELATIONSHIPS Bank of Baroda believes in the strength and integrity of relationships built with its customers like you. With over 100 years of experience in the banking industry

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Success Story of Bank of Baroda

and a wide network of over 3000 branches all over the country, we have always been active in extending financial support and adapting to your changing needs. Our Deposit Products, Retail Loans, Credit Cards and Debit Cards help you with your growing financial needs. With facilities like Lockers we ensure that your valuables are safe with us. Our countrywide branches offer you convenience and ease in operating your account wherever you are. Our 24-hour ATMs enable you to withdraw cash, check your account balance and request for a new chequebook even after banking hours.

FASTER TECHNOLOGY FOR BETTER SERVICE

Baroda Internet Banking / Baroda Mobile Banking, our latest Internet and Mobile banking initiatives enable you to operate your account just as you would in any of our branches. You can through the Internet check your balance, request for cheque books and print account details. Choose from our various products and services, that we sincerely feel will put a smile on your face; an investment we would like to bank on forever. RURAL BANKING SERVICES

STRENGTHENING THE RURAL ECONOMY Rural India contributes a major chunk to the economy every year. To give this sector a stronghold on finance and to enable economic independence, Bank of 19

Success Story of Bank of Baroda

Baroda has special offerings that extend credit facilities to small and marginal farmers, agricultural labourers and cottage industry entrepreneurs. With the objective of developing rural economy through promotion of agriculture, trade, commerce, industry and extending credit facilities particularly to small and marginal farmers, agricultural labourers and small entrepreneurs, Bank of Baroda, over the years, has reached out to larger part of rural India. We extend loans for agricultural activities and a host of services for farmers well tuned to the rural market, and aim to make a Self Reliant Rural India.

DEMAT
The Depository system was introduced in India more than a decade back. Today the word "Demat" is well known and most of the investors are conversant with the Demat of shares and securities. Presently, there are only two depositories functioning in India and they are:National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Financial Institutions, banks, custodians and stockbrokers complying with the requirements prescribed by Securities & Exchange Board of India (SEBI) can be registered as a Depository Participant (DP). A "Depository Participant" is an agent of the Depository (NSDL or CDSL) who is authorized to offer depository services to investors. Thus to open a Demat account of an investor, a bank or its branch has to get registered as a DP of a depository i.e. NSDL or CDSL or both.

CENTRALIZATION OF DP OPERATIONS IN OUR BANK

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Success Story of Bank of Baroda

The above pattern of DPs, at different branches, represents a distributed database and operations in which each of the above DPs is separately linked to either CDSL or NSDL. However, to have a better control & to consolidate DP operations and make available the facility to a large number of branches, our bank, under technology enabled Business Transformation Programme, has initiated steps to have a centralized DP operations by migrating the above DPs and their data to a centralized set up and link up identified CBS branches in India to this centralized set up. This approach shall enable Bank to offer Depository services to customers across large number of CBS branches.

PRODUCTS OF BANK OF BARODA

Deposit Retail Loan ATM/Debit Cards Internet Banking Baroda e-Trading

DEPOSITS
Bank of Baroda offers various deposit plans that you can choose from depending on the term period, nature of deposit and its unique saving and withdrawal features. Apart from competitive interest rates and convenient withdrawal options, our deposit plans offer other features such as overdraft facility, outstation cheque collections, safe deposit lockers, ATM's etc. Choose from Fixed, Current and Savings Deposit plans. Fixed deposits are categorized into deposits with a term period of less than 12 months, more than 12 months and recurring deposits. These deposit plans offer convenient solutions to both working individuals as well as senior citizens.

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Success Story of Bank of Baroda

Current and saving deposits are ideal for individuals who wish to take advantage of multiple benefits within the same plan and even be eligible to opt for overdrafts.

RETAIL LOANS
A wide range of solutions for your financial needs. Bank of Baroda offers a wide range of retail loans to meet your diverse needs. Whether the need is for a new house, child's education, purchase of a new car or home appliances, our unique and need specific loans will enable you to convert your dreams to realities.

ATM/DEBIT CARDS

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Success Story of Bank of Baroda

The Bank of Baroda International Debit Card is accepted at over 32000 Visa Electron ATMs in India and 1000000 ATMs worldwide. The card is also accepted at any 350000 merchant outlets in India and around 29 millions globally. The card enables you to enjoy the convenience of cash-less purchasing power without the fear of overdrawing your account.

KEY BENEFITS
Take advantage of the most widely accepted card and be able to withdraw from any ATM displaying the VISA logo, in India and abroad. At VISA Electron merchant shops, it can also serve as your electronic purse, and money gets debited instantly from your account, as you pay. The Card allows you to get mini-statements from Bank of Baroda ATMs, or to check the balance in your account, avoiding visits to even our nearest branches.

BARODA INTERNET BANKING

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Success Story of Bank of Baroda

"Baroda Connect" is an internet banking facility introduced as an alternative delivery channel for rendering effective customer service on 24 X 7 basis. It offers unique customized services to both Retail & Corporate customers. All customers can register under Baroda Connect for View and / or Transaction facility Under VIEW facility customer can View Account summary of all operative, deposit and loan accounts View all multiple Account information online with a single user id Get Account statements

Under TRANSACTION facility customer can Pay through Online Tax - Direct and Indirect taxes online such as Excise Duty, Service Tax, Customs Duty, Income Tax etc. Pay through Baroda Easy Pay - utility bills like electricity, mobile etc , Donations, Subscription, Travel plan booking online Book Rail Ticket IRCTC Additionally a Corporate user can Set up multiple workflow of initiators and approvers for transactions and requests View all trade finance related facilities availed eg. Export / Import LC, Inland/ Export Bills, Forward Contracts Bank Guarantees, Packing Credit account etc Use upload facility for single debit-multiple credit, multiple debit-multiple credit and single credit-multiple debit.

BARODA E-TRADING
Welcome to hassle free on-line investment and trading in shares Bank of Baroda in association with India Infoline Ltd. brings forward a fast, easy, transparent and hassle-free way for investing / trade in shares in secondary 24

Success Story of Bank of Baroda

capital market through National Stock Exchange and Bombay Stock Exchange. Investment in shares traded on the NSE and BSE can be made without having to visit your share-broker. All other associated hurdles like tracking of settlement cycles, paying and receiving funds in savings account, paying and receiving shares in Demat accounts have been removed. Now from a remote location while on tour, picnic, holiday - through internet and laptop / personal computer - you can also trade in the stock market. What's more you have access to world class research reports, absolutely free, on trading and investment from India Infoline.

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Success Story of Bank of Baroda

How Baroda e-Trading can help you? Baroda e-Trading is 3-in-1 integrated account. Bank of Baroda helps you to integrate your banking, demat and trading accounts. You can trade in shares backed by funds and securities available in your bank / demat account. Trading has been made very easy even for beginners. India Infoline Baroda e-Trading, an on-line share trading in shares facility is offered under a tieup arrangement with M/s India Infoline Ltd. (IIL), one of the most reputed and leading brokerage house. IIL is SEBI registered member of both the stock exchanges NSE, BSE. They are also leading brokers in commodities market. Under Baroda eTrading following will be provided to you by IIL: Investor Terminal & Trader Terminal - Trading work station that refreshes the rates on its own of stocks that are of interest to you. For traders, this is a premium service and available at a cost or minimum brokerage amount. Multi exchange trading :Trade execution on both the exchanges, BSE & NSE. Instant Limit - based on funds transferred to trading account MIS - You can generate / view / print your accounts related reports and details (contracts/bills/ledger, trade register, net position details, etc.) any time anywhere.

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Success Story of Bank of Baroda

MARKETING
The brand Baroda has steadily gained the mind share over the past two years driving the Bank towards higher growth trajectory. During the last two years, the Banks focus was on quality reach. Towards this, the marketing department put in place a progressive sales structure on the one hand and had conceived and implemented sales campaigns with specific business targets, and lead generation programs. As a part of best practice initiatives, the endeavor has been to impact an attitudinal change across the operational level where customer interface takes place through consistent sales and soft skills training.

The specific product campaigns in liability and asset products have helped the Bank achieve higher business growth. The Centenary Savings Bank Campaign fetched Savings Bank deposit of Rs1,593 crore, while the Centenary Current Account Campaign mobilized Rs1,098 crore. The Traders Loan and Retail Loans Campaigns generated business to the tune of Rs 2,884 crore. As the Bank stands at the threshold of its next century, marketing would become a key growth driver. The thrust areas would be on enhancing sales, raising brand equity through continuous market research for information. The existing sales structure needs to be expanded. The department is working out a strategic mass communication and events plan for the financial year 2008-09 focused towards brand enhancement. Significant 27

Success Story of Bank of Baroda

initiatives in customer education are also envisaged in the coming year for our CRM initiatives. As a result of above initiatives, the Bank has received recognitions both nationally and internationally. The Baroda brand is ranked at Number One among nationalized banks by Brand Finance. The Bank moved up to 258th rank, improving by 158 positions over the previous year in The Banker a magazine published from U.K. Besides these, the Baroda brand won many industry level awards for its marketing and business initiatives and strives to optimize its competitive edge in the banking space. The Baroda brand positioning was entrenched in the consumer mind as Indias International Bank, balancing its time tested values over its 100 years of existence with the contemporary challenges of being market sensitive and responsive as it marches tirelessly towards its next century.

MARKET RISK
Market risk is the risk that exposure to price movements of financial instruments arising as a result of changes in market variables, such as interest rates, exchange rates and other asset prices, will result in loss suffered by the Bank. The objective of market risk management is to avoid excessive exposure of the Banks earnings and equity to loss and to reduce the Banks exposure to the volatility inherent in financial instruments such as securities, foreign exchange contracts, equity and derivative instruments, as well as balance sheet or structural positions.

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The primary risk that arises for the Bank as a financial intermediary is interest rate risk due to the Banks Asset-liabilities management activities. Other market related risks to which the Bank is exposed are foreign exchange risk on foreign currency positions, liquidity, or funding risk, and price risk on trading portfolios. The Bank has a clearly articulated integrated treasury management policy and asset liability management policy to address market risk. These policies comprise management practices, procedures, prudential risk limits, review mechanisms and reporting systems. These policies are revised periodically in line with changes in financial and market conditions. Interest rate risk is measured through interest rate sensitivity gap report and Earning at Risk. Further, Bank is calculating duration, modified duration, Value at Risk for its investment portfolio consisting of fixed income securities, equities and Forex positions on monthly basis. The bank monitors the short term Interest rate risk by NII (Net Interest Income) perspective and long term interest rate risk by EVE (Economic Value of Equity) perspective. Value at Risk for the treasury positions is calculated for 10 days holding period at 99% confidence level. Stress testing of fixed interest investment portfolio through sensitivity analysis and equities through scenario analysis is regularly conducted. Based on the RBI directions the bank is also estimating the Economic value of equity impact on a quarterly basis.

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SUCCESS STORY OF BANK OF BARODA

Prior to independence from the British Rule, the ancient India was ruled by princely states, scattered over the width and breadth of the large Indian nation. The Maharajas of the inner States of colonial India contributed to the welfare of their respective regions as well as the Indian nation as a whole. Their vision and foresight in founding various financial, charitable, social and philanthropic organizations during their time is still cherished by any one going into the history of modern India and its achievements in every walk of life. The Maharaja of Baroda, a princely state of British India, by name Sir Sayyajirao Gaekwad III, had the same vision in establishing a bank for servicing the public at large and the citizens of Baroda State, a Gujarathi population in particular. On 20th July 1908, Bank of Baroda was established under the rules of Companies Act 1897, in a small building at Baroda, by the Maharaja with a paid up capital of Rs.10 lakhs. The guidelines set by the Maharaja for the bank was to serve the people of the State of Baroda as well as the neighboring regions with money lending, saving, transmission and encouraging the development of arts, science, commerce and trade for the people. Even during the worst financial disaster caused by the First World War, during the period 1913 to 1917, when as many as 87 banks closed their shutters, Bank of India survived the turbulence with its clear vision, ethical standards and financial prudence to grow from strength to strength. There were heroes to sustain the development of this bank to its present glory, from ordinary people as customers and the heirs of the Royal family of Baroda. The success story of the Bank of Baroda is studded with many a leaps and strides it made in the International presence, apart from establishing branches all over the Indian nation, by acquisition of already popular banking entities, as also commencing new commercial banking establishments, in the unique Gujarathi style. During the years of 1908 to 2007 (and the century year being round the corner) Bank of Barodas growth owes to the excellence in rendering financial products and services to the national and international population. Countries beginning from America to Zambia, in the alphabetical order have been enjoying the of Baroda as of today. 31

Success Story of Bank of Baroda

BALANCE SHEET AS ON 31st MARCH, 2005 Amount in Rupees (000's Omitted) Schedules As 31.3.2005 Capital & Liabilities Capital Reserves & Surplus Deposits Borrowings Other Liabilities & Provisions Total 1 2 3 4 5 294,52,74 5333,22,71 81333,46,43 1640,83,37 6062,18,45 94664,23,70 on As 31.3.2004 294,52,58 4836,39,61 72967,32,38 875,10,89 6135,30,96 85108,66,42 on

Assets Cash and balances with Reserve Bank of 6 India Balances with Banks and Money at Call 7 and Short Notice Investments Advances Fixed Assets Other Assets Total Contingent Liabilities Bills for Collection Significant Accounting Policies Notes on Accounts 8 9 10 11

2712,32,19 6541,87,91 37074,44,11 43400,38,39 860,80,33 4074,40,77 94664,23,70 36710,37,65 6200,98,31

3056,78,39 4210,02,65 38018,81,04 35600,88,22 815,26,86 3406,89,26 85108,66,42 30318,32,37 4831,00,90

12 17 18

Profit & Loss Account for the Year ended 31st March, 2005 Amount in Rupees (000's Omitted)

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Success Story of Bank of Baroda

Schedules Year ended 2005 I. Income Interest Earned Other Income Total 13 14

31st March, Year ended 31st March, 2004

6431,41,78 1304,82,78 7736,24,56

6147,06,93 1719,00,59 7866,07,52

II. Expenditure Interest Expended 15 Operating Expenses 16 Provisions and Contingencies Total III. Profit Net. Profit for the year Add Amount transferred from Investment Fluctuation Reserve Available for Appropriation Appropriation Transfer to : a) Statutory Reserve b) Capital Reserve c) Revenue and Other Reserves I) Investment Fluctuation Reserve II) General Reserve II) Statutory Reserve (Foreign) d) Dividend (including Dividend Tax) I) Interim Dividend II) Proposed Dividend TOTAL Basic & Diluted Earnings per Share Significant Accounting 17 Policies

3452,14,60 1982,18,61 1625,07,36 7059,40,57

3575,48,25 1805,30,27 1518,29,41 6899,07,93

676,83,99 Nil

966,99,59 Nil

676,83,99

966,99,59

169,21,00 -

241,75,00 2,50,96

332,39,51 8,27,86 340,67,37

475,00,00 26,26,91 6,42,39 507,69,30

59,94,95 107,00,67

166,95,62 676,83,99 Rs.23.08

99,25,08 115,79,25

215,04,33 966,99,59 Rs.32.97

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Success Story of Bank of Baroda

BALANCE SHEET AS ON 31st MARCH, 2006 Amount in Rupees (000's Omitted) Schedules As 31.3.2006 Capital & Liabilities Capital Reserves & Surplus Deposits Borrowings Other Liabilities & Provisions Total 1 2 3 4 5 365,52,74 7478,90,72 93661,99,16 4802,20,07 7083,90,04 113392,52,73 on As 31.3.2005 294,52,74 5333,22,71 81333,46,43 1640,83,37 6062,18,45 94664,23,70 on

Assets Cash and balances with Reserve Bank of 6 India Balances with Banks and Money at Call 7 and Short Notice Investments Advances Fixed Assets Other Assets Total Contingent Liabilities Bills for Collection Significant Accounting Policies Notes on Accounts 8 9 10 11 12 17 18

3333,43,34 10121,20,60 35114,21,87 59911,77,84 920,72,69 3991,16,39 113392,52,73 39200,53,70 5895,61,00

2712,32,19 6541,87,91 37074,44,11 43400,38,39 860,80,33 4074,40,77 94664,23,70 36710,37,65 6200,98,31

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Success Story of Bank of Baroda

Profit & Loss Account for the Year ended 31st March, 2006 Amount in Rupees (000's Omitted) Schedules Year ended 31st March, Year ended 31st March, 2006 2005 I. Income Interest Earned 13 Other Income 14 Total II. Expenditure Interest Expended 15 Operating Expenses 16 Provisions and Contingencies Total III. Profit Net. Profit for the year Available for Appropriation Appropriation Transfer to : a) Statutory Reserve b) Capital Reserve c) Revenue and Other Reserves I) Investment Fluctuation Reserve II) General Reserve II) Statutory Reserve (Foreign) d) Dividend (including Dividend Tax) I) Interim Dividend II) Proposed Dividend TOTAL Basic & Diluted Earnings per Share Significant Accounting 17 Policies 7100,00,35 1191,68,50 8291,68,85 3875,08,73 2384,75,27 1204,88,88 7464,72,88 826,95,97 826,95,97 6431,41,78 1313,34,00 7744,75,78 3452,14,60 1979,79,96 1635,97,23 7067,91,79 676,83,99 676,83,99

206,73,99 7,61

169,21,00

-1042,54,43 1448,04,53 6,96,58 1455,01,11 332,39,51 8,27,86 340,67,37

207,67,69

207,67,69 826,95,97 Rs.27.10

59,94,95 107,00,67

166,95,62 676,83,99 Rs.23.08

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Success Story of Bank of Baroda

Profit & Loss Account for the Year ended 31st March, 2007 Amount in Rupees (000's Omitted) Schedules As on 31st March, 2007 I. Income Interest Earned 13 Other Income 14 Total II. Expenditure Interest Expended 15 Operating Expenses 16 Provisions and Contingencies Total III. Profit Net. Profit for the year Available for Appropriation Appropriation Transfer to : a) Statutory Reserve b) Capital Reserve c) Revenue and Other Reserves I) Investment Fluctuation Reserve II) General Reserve II) Statutory Reserve (Foreign) d) Dividend (including Dividend Tax) I) Interim Dividend II) Proposed Dividend TOTAL Basic & Diluted Earnings per Share Significant Accounting 17 Policies Notes on Accounts 18 The Schedules referred to above form an integral part of the Profit & Loss Account. 9212,63,72 1173,24,10 10385,87,82 5426,55,70 2544,31,34 1388,54,33 9359,41,37 1026,46,45 1026,46,45 As on 31st March, 2006 7049,95,39 1127,39,03 8177,34,42 3875,08,73 2384,75,27 1090,54,45 7350,38,45 826,95,97 826,95,97

256,61,61 14,31,65

206,73,99 7,61

502,50,35 57,00 503,07,35

-1042,54,43 1448,04,53 6,96,58 412,46,68

124,60,65 127,85,19

252,45,84 1026,46,45 Rs..28.18

207,67,69

207,67,69 826,95,97 Rs.27.10

Balance Sheet as on 31st March, 2008 Amount in Rupees (000's Omitted)

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Success Story of Bank of Baroda

Schedules As 31.3.2008 Capital & Liabilities Capital 1 Reserves & Surplus 2 Deposits 3 Borrowings 4 Other Liabilities & Provisions 5 Total Assets Cash and balances with Reserve Bank of 6 India Balances with Banks and Money at Call 7 and Short Notice Investments Advances Fixed Assets Other Assets Total Contingent Liabilities Bills for Collection Significant Accounting Policies Notes on Accounts 8 9 10 11

on As 31.3.2007

on

365,52,77 10678,39,91 152034,12,72 3927,04,80 12594,41,42 179599,51,62 9369,72,34 12929,56,33 43870,06,78 106701,32,41 2427,00,81 4301,82,95 179599,51,62 82362,32,83 8315,01,73

365,52,76 8284,41,00 124915,97,93 1142,56,16 8437,69,61 143146,17,46 6413,52,02 11866,84,51 34943,62,75 83620,86,98 1088,80,75 5212,50,45 143146,17,46 61375,31,76 6627,59,33

12 17 18

Profit & Loss Account for the Year ended 31st March, 2008 Amount in Rupees (000's Omitted)

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Success Story of Bank of Baroda

Schedules Year ended 31st March, Year ended 31st March, 2008 2007 I. Income Interest Earned 13 Other Income 14 Total II. Expenditure Interest Expended 15 Operating Expenses 16 Provisions and Contingencies Total III. Profit Net. Profit for the year Available for Appropriation Appropriation Transfer to : a) Statutory Reserve b) Capital Reserve c) Revenue and Other Reserves I) General Reserve II) Statutory Reserve (Foreign) d) Dividend (including Dividend Tax) I) Interim Dividend II) Proposed Dividend TOTAL Basic & Diluted Earnings per Share Significant Accounting 17 Policies Notes on Accounts 18 11813,47,67 2051,03,61 13864,51,28 7901,67,06 2934,29,21 1593,02,86 12428,99,13 1435,52,15 1435,52,15 9004,08,55 1381,79,27 10385,87,82 5426,55,70 2544,31,34 1388,54,33 9359,41,37 1026,46,45 1026,46,45

358,88,04 84,64,85 651,05,38 650,35,08 70,30 340,93,88 0 340,93,88 1435,52,15 39.41

256,61,61 14,31,65 65,503,07,35 502,50,35 57,00 252,45,84 124,60,65 127,85,19 1026,46,45 28.18

Balance Sheet as on 31st March, 2009 Amount in Rupees (000's Omitted)

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Success Story of Bank of Baroda

Schedules As 31.3.2009 Capital & Liabilities Capital 1 Reserves & Surplus 2 Deposits 3 Borrowings 4 Other Liabilities & Provisions 5 Total Assets Cash and balances with Reserve Bank of 6 India Balances with Banks and Money at Call 7 and Short Notice Investments Advances Fixed Assets Other Assets Total Contingent Liabilities Bills for Collection Significant Accounting Policies Notes on Accounts 8 9 10 11

on As 31.3.2008

on

365,52,77 124700135 1923969517 5636,08,59 16538,14,66 227406,72,54 10596,34,35 13490,77,35 52445,87,58 143985,89,61 2309,71,93 4578,11,72 227406,72,54 73386,09,83 13963,99,04

365,52,77 10678,39,91 152034,12,72 3927,04,80 12594,41,42 179599,51,62 9369,72,34 12929,56,33 43870,06,78 106701,32,41 2427,00,81 4301,82,95 179599,51,62 82362,32,83 8315,01,73

12 17 18

Profit & Loss Account for the Year ended 31st March, 2009 Amount in Rupees (000's Omitted)

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Success Story of Bank of Baroda

Schedules Year ended 31st March, Year ended 31st March, 2009 2008 I. Income Interest Earned Other Income Total II. Expenditure Interest Expended Operating Expenses Provisions and Contingencies Total III. Profit Net. Profit for the year Available for Appropriation Appropriation Transfer to : a) Statutory Reserve b) Capital Reserve c) Revenue and Other Reserves I) General Reserve II) Special Reserve u/s 36 (1) (viii) III) Statutory Reserve (Foreign) d)Proposed Dividend (including Dividend Tax) TOTAL Basic & Diluted Earnings per Share Significant 17 Accounting Policies Notes on Accounts 18 13 14 15091,57,74 2757,65,80 17849,23,54 9968,16,76 3576,06,17 2077,80,43 15622,03,36 2227,20,18 2227,20,18 11813,47,67 2051,03,61 13864,51,28 7901,67,06 3034,29,21 1493,02,86 12428,99,13 1435,52,15 1435,52,15

15 16

556,80,05 358,25,58

358,88,04 84,64,85

707,41,44 220,00,00 1,17,48 383,55,63 2227,20,18 61.14

650,35,08 70,30 340,93,88 1435,52,15 39.41

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Success Story of Bank of Baroda

2005

2006

2007

2008

2009

SUMMARY OF PERFORMANCE (Rs in crores)

Country Owned Fund Total Asset Net Profit 2005 2945 946642 6768 2006 3655 74789 8269 2007 3055 828441 10264 2008 3655 106783 14355 2009 3655 124700 22272

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Success Story of Bank of Baroda

FUTURE PLANS OF BANK OF BARODA

The Bank has drawn further ambitious plans for expansion abroad, besides penetration in countries where it has presence to serve its 33 million global customers still better. Other countries, where the process is under way are Canada, New Zealand, Russia, GCC countries - Qatar, Kuwait, Saudi Arabia and Mozambique in Africa. The Bank is also planning to upgrade/expand its existing network in countries like China (branches-Guangzhou and Shanghai); Malaysia (Joint Venture); Kenya (Nakuru); UAE (Fujairah) and Oman (Sohar). The Bank has plans to extend its service area in UAE, where it is the only Indian Bank with full banking license, by opening five Electronic Banking Service Units (EBSUs) and installation of additional

PRODUCTS AND SERVICES

The Bank continues to expand its vast array of international banking products and services for meeting the needs of its global customers. These include customercentric assets & liabilities products, international trade finance buyers/ suppliers credit, treasury products, arranging funds from international markets through foreign currency loans, syndications for large foreign currency requirements, debt instruments like FRN/Bonds, structured/tailor-made financial solutions, payments and receipts, remittances, merchant banking/advisory services for foreign currency convertible bonds/ ADR/GDR, full banking services to joint ventures/ wholly-owned subsidiaries (WOS) of Indian corporates in the countries where it operates. The Bank launched many customer-centric initiatives during the year with a view to enhance customer service and convenience. A retail shoppe; SME loan factory, central processing cell were opened in UAE. Various value added services for NRIs were launched during the year. RapidFunds2India an instant remittance facility to India was extended to US, Seychelles and Mauritius besides existing countries of UAE, Oman and UK. Through this facility, money can be transferred instantly to over 1,700+CBS branches

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Success Story of Bank of Baroda

of the Bank in India and for near-instant remittances to RTGS/NEFT-linked branches of other banks in India.Steps were also taken to tie up with various Exchange Houses in the Middle East to increase the collection points for inward remittances. Realty sector in India has been booming. With a view provide margin money to NRIs seeking Home Loans in India, a special product was launched in UAE & Oman.

FUTURE PLANS ON TECHNOLOGY FRONT

1,919 domestic branches will be brought on the CBS platform by September, 2009 and two overseas in New York and Brussels will be brought on the CBS platform by December, 2009.Internet Banking will be launched in Fiji, Tanzania and Hong Kong during the current year.During the period April September 2009, RTGS and NEFT will be interfaced with the Banks internet banking portal. This will give the Banks customers the facility of making inter bank money transfers without approaching the branch.AML will be implemented in India during AprilJune 2009 along with two to three other overseas territories.

Three Regional Back Offices (RBOs) are expected to be operational during the period July-December 2009. These will be at Baroda, Chennai and Jaipur. The remaining two RBOs are planned for the first calendar quarter of 2010. The RBOs will cater to a cluster of 350 400 branches for back office activities, such as, account opening, signature scanning, cheque book issue, statement printing, FDR renewals, TDS certificates and some part of MIS.Single integrated Global Treasury covering India as well as the Banks Treasury Operations at overseas locations in Singapore, 43

Success Story of Bank of Baroda

Hong Kong, UAE, Oman, Mauritius, Bahamas and Bahrain will be completed by December 2009. Several other Projects like Corporate Cash Management, Online Trading and Centralized Pension Processing Cell will also be enabled during 2009-10. The implementation of IT-enabled Business Transformation Project provides Anytime, Anywhere and Anyhow Banking to the Banks customers and an organized and better work set up to its operational staff at branches. The Banks ultimate objective is to reorient itself as a highly technology enabled Bank to emerge as a leader in the global market place.

TECHNOLOGY UPGRADATION
In the year 2009-2010, the Bank embarked on an IT enabled Business Transformation Project to reposition itself in the intensely competitive banking environment. The Project envisaged a host of applications to be implemented in the Bank over a five year period ending March 2011, which would help the Bank to transform itself into a customer-centric organization and reduce the cost of its services. To support the integrated transformation project, the Bank set up its own state-of-art Data Centre on 10th December 2005 conforming to Uptime Institute Tier3 standard. The Bank also established a 1:1 replicant Disaster Recovery Site at Hyderabad taking into account international requirements of 500 km distance and different seismic zone.

TECHNOLOGY PROGRESS IN 2009-10

*Core Banking Solution: *Internet Banking:. *ATM Network: *Online Money Transfer Service: *Help Desks: *Other IT Initiatives: *Wide Area Network: *City Back Offices (CBOs): *RTGS/NEFT: *Global Treasury: *IS Security: *Anti Money Laundering:

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Success Story of Bank of Baroda

CASE STUDY
Customer Name: Bank of Baroda [New York Branch Project Header and Details: Complete Web Solution. Customer Contact Info
Mr. Sanjay Gokhale. Bank of Baroda One Park Avenue New York, NY 10016, USA. URL: http://www.bankofbaroda-usa.com PROFILE Bank of Baroda (BOB) New York Branch established in 1979. BOB New York Branch provides wide range of products and services to its customers for their international business requirements. This branch is Well-equipped to deal International Trade Business with a focus on Indo US Trade with personal touch. THE CHALLENGE Bank of Baroda wanted us to register quality top-level domain name for their New York branch and host the site on our high speed Windows server. Our team asked to develop corporate and professional website which had good content, but was dated and needed a nice look with easy navigation and usability. Also we need to promote their web site in all major search engines with top ranking. THE SOLUTION With our extensive background, knowledge and marketing tenacity we are capable and willing to make the Internet work for any one. Our team identified the banks requirements and worked out the systematic plan to satisfy their all needs and 45

Success Story of Bank of Baroda

wants. THE METHOD We constantly research, examine and implement new applications as they emerge to ensure that our clients web sites are both cutting-edge and effective. CGSs most significant contribution to the web site is the easy-to-use information pages. We created quality informative web pages, attractive layout with easy navigation system, which could promote web site quickly and generate maximum traffic. RESULT We designed a clean and professional web site, which was sensitive to their status, history and image, while incorporating a modern approach. Stringent security, sensitivity to needs and respect for the nature of the client were paramount. Web site is now listed and getting higher ranking in all the major search engines.

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Success Story of Bank of Baroda

QUESTIONNAIRES
1. 2. 3. function in details. 4. 5. 6. 7. 8. 9. competition among banks? 10. What do you think of future of bank of Baroda? Latest technology adopted by bank recently. What is payment core solution? What is money multiplier facility? What are the electronic services provided by the bank to your customers? What are the present services in demand? Is customer a service is an instrument creates sense of What type of facilities provides your bank? What are the product and services offered by bank? Various types of accounts, number of department-a regular

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Success Story of Bank of Baroda

CONCLUSION
The banking scenario has changed drastically. The changes which have taken place in the last ten years are more than the changes took place in last fifty years because of the institutionalization, liberalization, globalization and automation in the banking industry. Bank of Baroda banking system has several outstanding achievements to its credit, the most striking of which is its reach. Bank is now spread out into the remote corners of our country. Today bank is marked by high customer expectations and technological innovations. Technology is playing a crucial role in the day to day functioning of the bank. Baroda banks that have harnessed and leveraged technology best have a strategic advantage. To face competition it is necessary for banks to absorb the technology and upgrade their services. In todays context bank are following the strategy of relationship banking than mass banking which is need of the hour. The customer services are playing a very significant role in banking business. In India major events leading to deregulation, liberalization and privatization have unleashed forces of competition, making the bank run for their business, not only to create the customer, but more difficult to run for their business, not only to create the customer, but more difficult to retain the customer. Prompt and efficient customer service, thus, has become very significant

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Success Story of Bank of Baroda

BIBLOGRAPHY
BIBLIOGRAPHY AND REFERENCES
PRIMARY DATA MR. D.W. BAGUL, SENIOR MANAGER (BANK OF BARODA)

BOOKS BANKING AND FINANCIAL SYSTEM:-BY-MITHANI GORDON INDIAN BANKING:- BY-S.NATRAJAN

WEBSITES www.bankofbaroda.com www.bankofbarodausa.com www.wikipidia.com

NEWSPAPER ECONIMICS TIMES BUISNESS STANDARD

SEARCH ENGINES Www.google.com www.yahoo.com www.answer.com

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