A

Study on

NON PERFORMING ASSETS

At
BANK OF BARODA

By

FULL NAME

Hall Ticket NO:

Project submitted in partial fulfilment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY
Osmania University, Hyderabad -500007

Department of Business Management

Aurora’s Post Graduate College (MBA) Uppal,

Hyderabad

(2018-2020)
 DECLARATION

I hereby declare that this project report titled A STUDY ON NON PERFORMING

ASSETS at BANK OF BARODA submitted by me to the department of business

management, O.U., Hyderabad, is a bonafide work undertaken by me and it is not

submitted to any other university or institution for the award of any degree/diploma

certificate or published any time before.

Name of the Student Signature of the Student

 CERTIFICATION
This is to certify that the project report title A STUDY ON NON PERFORMING

ASSETS at BANK OF BARODA submitted in partial fulfilment for the award of

MBA programme of department of business management, O.U. Hyderabad, was carried out

by Mr. FULL NAME under my guidance. This has not been submitted to any other

university or institution for the award of any degree/diploma certificate.

Name and Address of the Guide Signature of the Guide

AURORA’S POST-GRADUATE COLLEGE (MBA)
#1-118/10, Peerzadiguda, Uppal, Hyderabad -500 092, T.S.

This is to certify that FULL NAME bearing Hall Ticket No. 1303-18-672-093 is a
bonafide student of Aurora’s PG College (MBA), Uppal in Masters of Business
Administration.

This project titled A STUDY ON NON PERFORMING ASSETS at BANK OF

BARODA which is being submitted in partial fulfillment of the requirements for the
award of MBA program of Department of Business Management of Osmania
University, Hyderabad was carried out under my guidance. This has not been submitted
to any other University or Institution for the award of any Degree/Diploma/Certificate.

Signature of Student Signature of Guide

Signature of HOD Signature of Principal

ABSTRACT
A 'non-performing resources (Npa) was depicted as a credit office in regard of which the
intrigue and in addition bit of basic has stayed 'past due' for a predefined time length.

The three letters "NPA" strike dread in banking bit and business circle today. Npa is short
kind of "non performing asset". The feared npa rule says basically this: when premium or
other in light of a bank stays unpaid for over 90 days, the whole bank advance regularly
turns a non performing resource. The recuperation of advancement has always been issue
for banks and monetary establishment. To leave these first we have to acknowledge is it
conceivable to keep up a key partition from NPA, no cannot be then left is to manage the
factor responsible for it and dealing with those segments.

A bank is a money related affiliation that gives banking and other financial associations. By
the term bank is commonly valued an establishment that holds a money related licenses.
Banking licenses are allowed with money related supervision experts and offer rights to
arrange the most critical budgetary associations, for example, suffering stores and making
credits. There are likewise cash related establishments that give certain budgetary
associations without meeting the legitimate noteworthiness of a bank, a demonstrated non-
bank. Banks are a subset of the money related associations industry.
 ACKNOWLEDGEMENT
This acknowledgement is a humble attempt to earnestly thank all those who are directly or
indirectly involved with my project and were of immense help to me. First of all, I would like
to express my sincere thanks to the Director of college MRS.SUBHA PRADHA and H.O.D
of MBA department, PRADHYNA SEN for giving me this opportunity to carry out the
project .I acknowledge with greatest courtesy the efforts taken by MRS.P.HARIKA my
internal guide, who took genuine interest in my project and helped me to understand the basic
concepts of the project when necessary. I am also thankful to my external guide.

FULL NAME
(1303-18-672-093)
 INDEX
S.NO. CONTENTS PAGE NO.
1. CHAPTER-I 01

INTRODUCTION 02
NEED OF THE STUDY 03
SCOPE OF STUDY 04
OBJECTIVES OF THE STUDY 05
RESEARCH METHODOLOGY 06
LIMITATIONS OF THE STUDY 07
2. CHAPTER-II 08

LITERATURE REVIEW 09-17

3. CHAPTER-III 18

INDUSTRY PROFILE 19-20

COMPANY PROFILE 21-33
4. CHAPTER-IV&V 34

DATA ANALYSIS AND INTERPRETATION 35-55

5. CHAPTER-VI 56

FINDINGS 57
SUGGESTION 58
CONCLUSION 59
BIBILOGRAPHY 60
 CHAPTER-1
INTRODUCTION

1
 INTRODUCTION
Banking is as old as civilization itself, initially banking meant money lending. The
business of banking existed in Babylonia as early as 2000 BC. The Babylonians developed a
banking system where money was lent in temples against the security of Gold and Silver left
with them for safe custody.

In ancient Greece around the same time, there existed banking business. Even then
temples were used as depositories for the surplus funds of the people and were also used as
centers of the money lending business. The priests acted as financial agents of the money
lending business.

The practice of granting credit existed in ancient Rome. The Romans adopted Greek
system of banking. The banking business had a set back after the death of the emperor
JUSTINIAN in 565A.D. With the advent of trade and commerce in the middle age, the
banking business was mostly confined to only money lending. The JEWS and LAMBARDY
dominated the money lending business in the medieval period. The Christians were forbidden
by their religion to indulge in money lending. However in the course of time with the
weakening of the hold of religion and with the development of trade and commerce around
the 13th century, the Christians also entered the field of money lending.

Banking business originated in England during the reign of Queen Elizabeth I.

Goldsmiths mainly did banking business. They accepted the valuables and the funds of
their customers for safe custody and issued receipts against the valuable lest for safe custody.
But in the course of time their receipts became payable to barrier on demand.
The banking business suffered a setback during the reign of Charles II in 1640 that declined
to return the funds and valuables deposited by the Goldsmiths with the exchequer under the
case of government. This led to the growth of private banking and also the establishment of
the Bank of England in 1694.
The ancient Hindu Scripture refers to the prevalence of money lending activities in
the Vedic period. The epics Ramayana and Mahabharata refer banking business as full
fledged activity. During the Smriti period, which followed the Vedic period the members of
the Vaish community largely carried on banking business. In ancient times banking business
was mainly in the form of money lending. It laid a strong foundation for banking industry.

2
 NEED FOR THE STUDY

The venture is to decide how to deal with the Non-Performing Assets in Banks and
what is the pattern of NPAs from the previous years.

To do the examination with respect to NPAs which is of extraordinary worry in the present
situation, a basic methodology is pursued to make an inference. The correlation is done
between the information of BANK OF BARODA& other business banks. Since this being a
spellbinding exploration much accentuation will be given on examination investigation of
different years' auxiliary information to complete a deduction.

3
 SCOPE OF THE STUDY
The extent of the investigation is restricted to the goals as referenced before. The examination
ranges from understanding the essentialness of non-performing advantages for characterizing
the criteria of distinguishing non-performing resources in the financial division, to audit
BANK OF BARODA execution in the administration of non-performing resources. It
additionally surveys the structure of BANK OF BARODA recuperation approach with which
it wants to cut down the level of net non-performing advantages for the net advances. The
examination additionally includes the proposals, the following of which will convey great
outcomes to the association.

4
 OBJECTIVE OF THE STUDY
 To consider the Non performing assets with reference to BANK OF BARODA
BANK.

 To appreciate what is Non Performing Assets and what are the shrouded purposes
behind the advancement of the NPAs.

 To appreciate what steps are being taken by the Indian money related zone to
diminish the NPAs

 To ponder the NPA the administrators approach of BANK OF BARODA BANK

 To review BANK OF BARODA execution in non-performing assets for the time

range of 2018-2019.

5
 RESEARCH METHODOLOGY
The examination identifies with lead points of view, for instance, perception, air and wants
towards the Loan things and given by BANK OF BARODA
The Research Design of my endeavor relies upon clear research.

Essential DATA:

• Through survey: I at first was drawn nearer to set up a survey with uncommon
reference to NPA and examined respondents when all is said in done i.e., not simply the
customers of BANK OF BARODA BANK were tended to yet customers of various banks in
territory.

• Face to stand up to coordinated effort: I was in like manner given the once-over of
specific defaulters i.e., NPA's of BANK OF BARODA bank living in a close area, I for one
conversed with them in order to give the information to bank and it moreover helped me in
my endeavor report.
• Discussions: I moreover with help of exchanges with my industry control had the
ability to perceive how they oversee NPAs.
Optional DATA:

• Records kept up by the bank: My endeavor in charge gave me the indispensable

records kept up by bank over the past periods concerning NPA generally speaking and
besides NPA's with one of a kind reference to BANK OF BARODA BANK so I can get
bottomless information with respect to this topic • Internet: I furthermore accumulated a lot
of information as for NPA when in doubt and related to bank through web.

6
 LIMITATION OF THE STUDY
• I have chosen just a single bank for NPA which isn't sufficient to give me the general
data in regards to NPA in different banks likewise it was because of brief timeframe.
• I confronted trouble in doing appropriate INTERPRETATION as I didn't have related
knowledge for making venture report.
• Questionnaire was given by bank as it was intended to be inside the bank
impediments.
• Response from respondents while topping the survey was not off to the desires.

7
 CHAPTER-2

LETERATURE REVIEW

8
leterature review
dr. nammita rajput (2010) in her investigation paper title " gainfulness and non-
performing resources: indian perspective" explore the nature degree and size of
npas of scbs ,as a get-together. this examination in like manner examinations the impact of
npas on the advantage of psbs working in indian . further , the examination could give
accommodating bits of information to study if the changes in efficiency of banks have been
the appealing way and moreover significant in rule and itemizing of techniques. the
examination contemplated that there is a diminishing example in the extents of npas as gnp
and nnpas. there is an abnormal state of negative association between's npa proportions with
roa.
kaveri (2001) examined the non-performing assetsof diverse banks and proposed distinctive
strategies to diminish the level of npas.
dong ( 2002) reviews the possibility of npas in the indian budgetary framework and looks at
the key structure incorporates that would be basic for the benefits remaking organizations to
expect an amazing activity in settling such npas.
muniappan (2002) conveyed that the issue of npas is related to a couple of inward and outside
factors going toward the borrowers. the internal elements are redirection of benefits for
improvement, upgrade and mode mis move ; making up new pursuits, helping progression
accomplice concerns time ,cost overpowers in the midst of the endeavor execution
mastermind, business disillusionment , inefficient organization , focused on work relations,
ill-advised development issues, things obsolete quality, etc. which external components are
retreat , non-portion in various countries ,inputs/control insufficiency, esteem elevating,
incidents and standard disturbances.

dr. janardhan g. naik (2006) raised on the issues of npas to stand up to the challenges before
the budgetary fragment.
chaitanya, v.k (2004) proposed a view that non performing resources are one of the huge
stresses for banks in india. npas reflect the execution of banks. a strange condition of npa
suggests high advantage of a generous number of credit defaults that impact the productivity
and all out resources of banks and besides crumbles the estimation of the focal points . the
npas improvement incorporates the need of game plans, which decreases the general
advantages and financial specialist regard. the issue ofnpas isn't simply affecting the banks
yet also the whole economy. the researcher analyzes the possibility of npas, its degree and
genuine explanations behind a record getting the chance to be non performing . the projection
of npa all through the accompanying three years in open part banks.
k. veerakumar (2012) displayed an investigation paper on " npas in need
division: a danger to indian booked business banks. in this paper he dismembered to get in
sights into the circumstance of npas in need division pushes by booked business banks(scbs)
i.c. open, old and new private and remote banks have been considered. to dismember extent
examination, normal , rate, olynomial pattern examination co-compelling relationship and
various direct backslide examination and 't' test have been used.
gourav vallabh , anoop bhatia and saurabh mishra (2004) in their article have made an
undertaking to explore the advancement of non-performing assetsof open and private banks
close by outside banks working in india in the midst of the year 1994-95 to 2003-04,
influenced by substantial scale economy factors and bank unequivocal segments, using
backslide strategies and anova show. the discernment was that npa decay with extended need
section advances to indicate advances and open portion progresses were affected by
macroeconomic factors wherever . nevertheless, this examination didn't take advance
expenses , swelling rate in thought.

9
bercoff, giovanniz and grimardx (2002) in their examination if banks endeavored to check
npas by using stimulated dissatisfaction exhibit including the diverse bank related parameters
similarly as macroeconomic variable. some bank unequivocal parameters in their
examination were extent of complete resources , net assets, bank's specific parameters in their
examination were extent of all out advantages for net assets', first experience with peso
credits, and kind of bank, for instance, remote , private or open. macroeconomic factors in
this examination were credit advancement , hold adequacy (import/reserves),foreign advance
expense and cash related expansion. the examination developed that factors, for instance,
working cost , prologue to peso progresses, credit advancement and remote financing cost ,
contrarily influenced npas. the macroeconomic components, for instance, money multiplier
and hold abundancy emphatically influenced npas. movement for usage of security interest
can be begun just if the confirmed asset is designated nonperforming asset.
non performing asset infers an advantage or record of borrower ,which has been
masterminded by bank or financial association as sub – standard , unrealistic or adversity
asset, according to the bearing or guidelines relating to assets characterization issued by rbi .
an aggregate due under any recognize office is treated as "past due" when it isn't been paid
inside 30 days from the due date. due to the improvement in the portion and settlement
structure, recovery air, up level of advancement in the money related system, etc, it was
picked to dispose of "past due "thought, with effect from walk 31, 2001. as necessities be as
from that date, a non performing asset shell be where I. INTEREST OR POSSIBLY
BIT OF KEY REMAIN LATE FOR A PERIOD OF MORE THAN 180 DAYS IN
RESPECT OF A TERM CREDIT,
II THE ACCOUNT STAYS 'OUT OF SOLICITATION ' FOR A PERIOD OF
MORE THAN 180 DAYS ,IN RESPECT OF AN OVERDRAFT/CASH CREDIT
(OD/CC).

10
in banking industry .A review of the relevant literature has been described as under

Prashanth K Reddy (research paper)

(From article-International Journal of Economic Practices and Theories, Vol. 1, No. 2,
2011 (October), e-ISSN 2247 – 7225)
Prashanth K. Reddy (2002) in his research paper on the topic, “A comparative study of
Nonperforming Assets in India in the Global context” examined the similarities and
dissimilarities, remedial measures. Financial sector reform in India has progressed rapidly on
aspects like interest rate deregulation, reduction in reserve requirements, barriers to entry,
prudential norms and risk-based supervision. The study reveals that the sheltering of weak
institutions while liberalizing operational rules of the game is making implementation of
operational changes difficult and ineffective. Changes required to tackle the NPA problem
would have to span the entire gamut of judiciary, polity and the bureaucracy to be truly
effective. This paper deals with the experiences of other Asian countries in handling of
NPAs. It further looks into the effect of the reforms on the level of NPAs and suggests
mechanisms to handle the problem by drawing on experiences from other countries.

11
Dr. A. Shyamala (research paper)
(From article-Dr. A. Shyamala NPAS IN INDIAN BANKING SECTOR: IMPACT ON
PROFITABILITY: Indian Streams Research Journal (June; 2012))
Findings of the study indicated that Indian banking sector is facing a serious problem of NPA
is comparatively higher in public sectors banks. To improve the efficiency and profitability,
the NPA has to be scheduled various steps have been taken by government to reduce the
NPA. It is highly impossible to have zero percentage NPA. But at least Indian banks can try
competing with foreign banks to maintain international standard
Ratikantha Ray (2013)
had compared the non-performing assets classification and provisioning for the advance
assets of commercial and cooperative banks by selecting the portfolio of the banks and
recognition of Non -Performing banks in Pune. For study researcher selected two bank viz.
Assets and gradually strengthening the financial position of Bank of Maharashtra from
commercial bank sector and banks. Janata Saharawi Bank Ltd from co-operative bank. The
study concluded that occurrence of NPA affects the profitability Thus, non-performing assets
are loans in jeopardy of default and health of a Bank adversely. The level of NPA is an
indicator of banker's efficiency in credit
D.Ganesan, R.Santhanakrishnan (2013)5found by their productive sectors.
The Basel Committee on Banking study that banking industry has undergone a major change
first phase of economic liberalization; hence the importance credit management has emerged.
In recent time banks are very cautious in extending loan, because of mounting NPA. This
article highlights the reasons for an assets becoming NPA and remedial measures to be taken
Due to various steps taken by the Government of India NPA level.

12
Siraj.K.K and Prof. (Dr). P. Sudarsanan Pillai (research paper)
(From article-International Journal of Marketing, Financial Services & Management
Research-ISSN 2277- 3622 Vol.2, No. 9, September (2013))

The researchers found that Non Performing Assets endangered negative impact on banking
stability and growth. Issue of NPA and its impact on erosion of profit and quality of asset was
not seriously considered in Indian banking prior to 1991. There are many reasons cited for the
alarming level of NPA in Indian banking sector. Asset quality was not prime concern in
Indian banking sector till 1991, but was mainly focused on performance objectives such as
opening wide networks/branches, development of rural areas, priority sector lending, higher
employment generation, etc. The accounting treatment also failed to project the problem of
NPA, as interest on loan accounts were accounted on accrual basis (Siraj K.K. and P.
Sudarsanan Pillai, 2012).

Naidu, B.R. and Naidu,

A.P.S. (2004) assessed the impact of NPA on the profitability of PSBs. The authors identified
the diversion of funds as the number one reason for the NPA in the banking sector.

Gopalakrishnan, T.V. (2004)

explained that NPA pose significant blow on the balance sheets and profitability of PSBs and
high level of NPAs in bank books is a great risk to bank’s health, stability, viability and
soundness.

Basu, P. (2005)

recommended various banking reforms, integration of best practices from abroad and the
development of capital market to counteract the threat of financial distress.

Shiralashetu and Akash (2006)

Reported that the priority sector, in particular the SSI Sector contributed NPA significantly
and PSBs accounts for 91.07% of the total NPA of priority Sector

Chakrabarti, R. (2006)

Discussed the major contemporary issues on public sector bank performance, and the nature
and management of NPAs in Indian commercial banking. The Author briefed that Indian
banking sector is suffering from considerable NPAs in their asset Portfolio.

Vallabh, et al., (2007)

Examined the impact of NPA on banks’ macroeconomic factors And bank specific
parameters. The other notable observation is that the bank’s exposure to Priority sector
lending reduces the NPA.

Rajeev (2008)

13
analyzed the level of NPA and its relationship with key performance Indicators in
Indian banking. Inference based on analysis revealed that rural branches contribute More
NPA in SSI sector. Regarding the generation of the NPA, the study pointed out that
Inadequate funds and higher amounts of accumulated NPAs resulted in the creation of the
more NPA in SSI.

RAGHURAM RAJAN’S POLICIES ON NPAs

Rajan became the RBI governor in September 2013 and from day one, he focused on the
NPA problem of the Indian banking system. In his very first speech as the governor, he said,
“We have to improve the efficiency of the recovery system, especially at a time of economic
uncertainty like the present [2013]…. I have asked Deputy Governor Dr. Chakrabarty to take
a close look at rising NPAs and the restructuring/recovery process, and we too will be taking
next steps shortly

14
EFFORTS OF THE INDIAN GOVERNMENT

To give a boost to the Indian banking sector, Arun Jaitley (Jaitley), Finance Minister of India,
came up with a seven-pronged plan called ‘Indradhanush’ in August 2015. The seven
elements of this plan were appointments, board of bureau, capitalization, de-stressing,
empowerment, framework of accountability, and governance reforms.

Pallab Sikdar And Manish Makkad (2013)

Attempted to put and solvency position of the bank.forward the means of interpreting credit
risk from existing levels of bank NPAs. Their research highlights the significant Scope of the
Study steps taken and procedures implemented by major Indian T he study analyzed the
management of NPA in Syndicate commercial banks, within the public and private sector,
Bank only. The study is based on the secondary data. The towards recovery of loans and
advances slipping into the period of study is 5 year (2010-11to 2014-15). NPA bracket. The
researcher found that the problem of NPAs can be tackled only with proper credit assessment
and risk Objectives of the Study management mechanism.

Zahoor Ahmad, M.Jegadeeshwaran (2013)

Analyzed Non-performing asset management in nationalized bank. .For the study researcher
collected the data for a period of five years and analyzed by mean, CAGR, ANOVA and
ranking. The study revealed that there is significant difference in the level of NPA's of
nationalized banks which reflect their varied efficiency in the management of nonperforming
assets
Swami (2001) studied the comparative performance of different bank groups since 1995-96
to 1999-2000. An attempt was made by researcher to identify factors which could have led to
changes in the position of individual banks in terms of their share in the overall banking
industry. He analyzed the share of rural branches , average branch size, trends in bank’s
profitability, share of public sector assets, share of wages in expenditure, provision and
contingencies, net non performance assets in net advances, spread, has been calculated. He
concluded that in many respects nationalized public sectors banks much better than private
banks, even they are better than foreign bank.
Bhatia (2007) in his research paper entitled, “Non-Performing Assets of Indian Public,
Private and Foreign Sector Banks: An Empirical Assessment”, explores an empirical
approach to the analysis of Non-Performing Assets (NPAs) of public, private, and foreign
sector banks in India. The NPAs are considered as an important parameter to judge the
performance and financial health of banks. The level of NPAs is one of the drivers of
financial stability and growth of the banking sector. This paper aims to find the fundamental
factors which impact NPAs of banks. A model consisting of two types of factors, viz.,
macroeconomic factors and bank-specific parameters, is developed and the behaviour of
NPAs of the three categories of banks is observed.
Ashok Khurana and Mandeep Singh (2010), stated that issue of mounting NPAs is a
challenging to public to public sector banks. The study found that the asset wise classification
of PSBs is in right direction and there is significant variation in the recovery of NPAs in the
different sector. The research observed that PSBs should not be loaded with the twin object of
profitability and social weal fair.
Jaya Shukla and Gaurav Bajpai (2010) in their paper present a mathematical model for
problem of stability of non- performing assets (NPA’s) growth in banking sector. The various
variables leading to high NPA are identified. A sufficient criterion which ensures the

15
damping out of the effects arising out of the perturbations in the variables is obtained. The
model assumes prevalence of normal conditions in banking sector in terms of liquidity,
political interference and other external factors affecting the stability of NPA. The model
emphasizes on growth of NPA’s at stable rate to improve banks asset portfolio and quality of
service assured by banks.
Garg Sambhav et al (2013) an attempt has been made to compare different bank groups as
well as bank- wise data relating to Gross NPAs to Gross Advances. The paper also shows
Priority and Non- Priority Sector Advances of Scheduled Commercial Banks. The present
study highlighted that all the Indian banks are facing the challenge of NPAs and intensity of
NPAs is much higher in Public Sector Banks. It shows that earlier Public Sector’s NPAs was
more as compared to Public Sector Banks. However, now it has been managed at lower end.
As per Rekha Gupta and Nitin S. Sikarwar (2013) The Government and the banks have
been initiated a number of strategies in the past and are being initiated at present to bring
down the level of NPAs. In view of the vital role of nonperforming assets on the profitability,
Punjab National Bank and HDFC Bank have been selected for the purpose of present
research because both are the giant banks in public and private sector, so a comparative study
is made. The author make an analytical study in respect of Non Performing Assets and their
recovery management, so that it may be useful at all banking levels regarding the efficient
utilization of resources which may lead to better working of the banking sector.
Rani Chanchal (2013) was undertaken a study to know the impact of securitisation
legislation in the management of NPAs in selected financial institutions. To attain this target
following banking institutions operating at their local, regional and zonal levels have been
approached to provide the requisite data and information. Banks operating at all the three
levels include State Bank of India, Oriental Bank of Commerce, Union Bank of India,
Allahabad Bank, Bank of Baroda, Canara Bank and Punjab National Bank. Banks operating
at two levels include Bank of India, Central Bank of India, Dena Bank, Punjab & Sind Bank,
State Bank of Patiala, Syndicate Bank and Vijaya Bank. Banks operating at only one level
include Andhra Bank, Bank of Maharashtra, Corporation Bank, Indian Bank, Indian Overseas
Bank, United Bank of India and UCO Bank. The study reveals that the NPAs have not only
affected the profitability and productivity of the banks and financial institutions, but also put
a stigma on the image of Indian banking and a drain on the very value system of the society.
Balasubramaniam C.S.(2012) in his paper assumes significance with the recent proposal by
RBI to introduce Basel III norms in the banking sector from January 2013. Basel III
framework of guidelines formulated by Bank for International Settlements (BIS) in
consultation with central banks operating in a number of countries all over the world expect
the participating banks in their respective economies to be following healthy financial and
operational management policies. The paper is divided in four parts. The first part brings out
a discussion on the concept of NPA in the context of identification and control procedures,
impact of NPA on profitability and financial soundness of banks in general. The second part
presents a trend analysis of NPAs followed by a series of in depth analyses on the high level
of borrowings from banking sector indicating a buildup of sectoral credit booms in general
and also raising concerns about financial performance and operations of the borrowers. The
third part dwells on the impact of restructuring of advances by banks on the basis of asset
classification. Finally, certain issues and perspectives/ challenges on the performance of
banking sector and financial stability of the economy emerge as conclusion.
Vivek srivastava,Deepak bansal (2012) did a “a study of trends of nonperforming assets in
private banks in India” to find out whether there is positive trend and control of NPA‟S by
the private sector banks in India. The data were collected for a period of five years from
2007-2012 from various secondary sources and analysed by average and comparative
percentage analysis. It was found that that the level of NPAS is alarming with public sector

16
banks in India but there is slight improvement in the asset quality reflected by decline in the
NPA percentage. The banks should take timely action against degradation of good
performing assets.

17
 CHAPTER-3
INDUSTRY PROFILE &
COMPANY PROFILE

18
 INDUSTRY PROFILE

Money is the pre-central for current business and budgetary affiliations recognize a
huge part in the cash related structure. It is through budgetary markets and establishments
that the cash related plan of an economy works. Cash related markets propose the
institutional frameworks for managing in budgetary assets and credit instruments of different
sorts, for instance, money, checks, bank stores, charges, securities, values, etc. Cash related
market is a wide term depicting any business focus where buyers and merchants take a
gander at the trading of central focuses, for instance, values, securities, money related
structures and fortifications. They are routinely delineated by having clear looking over,
essential controls on trading, costs and charges and market powers picking the expenses of
securities that trade.
All things considered, there is no specific spot or area to exhibit a budgetary market.
Wherever a cash related trade occurs, it is considered to have happened in the money related
market. Along these lines budgetary markets are unavoidable in nature since cash related
trades are themselves exceptionally inescapable all through the monetary structure. For
instance, issue of enormous worth offers, permitting of progress by term driving
establishments, store of money into a bank, purchase of debentures, offer of offers, and so
forth.
On an extremely fundamental dimension, budgetary markets are the credit markets obliging
the undeniable needs of the comprehensive network, firms and establishments by drawing in
obtaining and offering of cash related assets, cases and affiliations.
Capital Market
The capital market is a business open door for cash related assets which have a long or
defective progress. Generally, it oversees whole course of action securities which have a
period of over multi year. In the most extended sense, it contains an advancement of channels
through which the extra assets of the structure are made available for present day and
business endeavors and open supervisors. With everything considered, capital market
engages moving of capital.

Beyond what many would consider possible performed by a capital market are:

1. Mobilization of cash related Assetson a the country over scale.

19
2. Securing the outside capital and capacity to finish off need in the required Assetsfor
money related improvement at a speedier rate.
3. Effective transport of the readied cash related resources, by controlling the practically
identical to endeavors yielding most basic yield or to the endeavors expected to progress
balanced budgetary improvement.

Capital market incorporates fundamental market and discretionary market.

Focal market: Primary market is a business open door for new issues or new cash related
cases. Thusly it is in like manner called as New Issue Market. It in a general sense deals with
those securities which are issued to the general open all of a sudden. The market, as
necessities be, makes available another square of securities for open selection. Thusly, it
regulates raising of new capital by affiliations either for cash or for thought other than cash.
Also as could be regular be Initial Public Offering (IPO) where a firm intends to general
society out of the blue.

Discretionary market: Secondary market is the spot existing securities are traded. Near the
day's end, securities which have starting late experienced new issue show are traded this
market. Generally, such securities are refered to in the stock exchange and it gives a steady
and standard market for acquiring and offering of securities. This market fuses each and
every stock exchange seen by the relationship of India.

Money Market

Money markets are the business pieces for immediately, staggeringly liquid obligation
securities. Cash show securities are everything considered impossibly guaranteed

20
 COMPANY PROFILE
Background:
Bank of Baroda (BOB) is an Indian multinational, public sector banking and
financial services company. It is the third largest public sector bank in India, with 131 million
customers, a total business of US$218 billion, and a global presence of 100 overseas offices.
Based on 2019 data, it is ranked 1145 on Forbes Global 2000 list.
Bank of Baroda (BOB) is an Indian multinational, public sector banking and
financial services company. It is the third largest public sector bank in India, with 131 million
customers, a total business of US$218 billion, and a global presence of 100 overseas offices.
Based on 2019 data, it is ranked 1145 on Forbes Global 2000 list.

The government of India announced the merger of Bank of Baroda, Vijaya Bank and Dena
Bank on September 17, 2018, to create the country's third largest lender. The amalgamation is
the first-ever three-way consolidation of banks in the country, with a combined business of
Rs14.82 trillion (short scale), making it the third largest bank after State Bank of India (SBI)
and BANK OF BARODA Bank.
The Maharaja of Baroda, Maharaja Sayajirao Gaekwad III, founded the bank on 20 July
1908 in the Princely State of Baroda, in Gujarat.[7] The Government of India nationalized the
bank, along with 13 other major commercial banks of India on 19 July 1969; the bank has
been designated as a profit-making public sector undertaking (PSU).
History
Maharaja Sayajirao Gaekwad III, the founder of Bank of Baroda
In 1908, Maharaja Sayajirao Gaekwad III, set up the Bank of Baroda (BoB),[8] with other
stalwarts of industry such as Sampatrao Gaekwad, Ralph Whitenack, Vithaldas Thakersey,
Tulsidas Kilachand and NM Chokshi.[9] Two years later, BoB established its first branch in
Ahmedabad. The bank grew domestically until after World War II. Then in 1953 it crossed
the Indian Ocean to serve the communities of Indians in Kenya and Indians in Uganda by
establishing a branch each in Mombasa and Kampala. The next year it opened a second
branch in Kenya, in Nairobi, and in 1956 it opened a branch in Tanzania at Dar-es-Salaam.
Then in 1957, BoB took a big step abroad by establishing a branch in London. London was
the center of the British Commonwealth and the most important international banking center.
In 1958 BoB acquired Hind Bank (Calcutta; est. 1943), which became BoB's first domestic
acquisition.
21
1960s

In 1961, BoB acquired New Citizen Bank of India. This merger helped it increase its branch
network in Maharashtra. BoB also opened a branch in Fiji. The next year it opened a branch
in Mauritius

In 1963, BoB acquired Surat Banking Corporation in Surat, Gujarat. The next year BoB
acquired two banks: Umbergaon People's Bank in southern Gujarat and Tamil Nadu Central
Bank in Tamil Nadu state.

In 1965, BoB opened a branch in Guyana. That same year BoB lost its branch in Narayanganj
(East Pakistan) due to the Indo-Pakistani War of 1965. It is unclear when BoB had opened
the branch. In 1967 it suffered a second loss of branches when the Tanzanian government
nationalised BoB's three branches there at (Dar es Salaam, Mwanga, and Moshi), and
transferred their operations to the Tanzanian government-owned National Banking
Corporation.

In 1969, the Indian government nationalised 14 top banks including BoB. BoB incorporated
its operations in Uganda as a 51% subsidiary, with the government owning the rest.
1970s

In 1972, BoB acquired Bank of India's operations in Uganda. Two years later, BoB opened a
branch each in Dubai and Abu Dhabi.

Back in India, in 1975, BoB acquired the majority shareholding and management control of
Bareilly Corporation Bank (est. 1954) and Nainital Bank (est. in 1922), both in Uttar Pradesh
and Uttarakhand respectively. Since then, Nainital Bank has expanded to Uttarakhand, Uttar
Pradesh, Haryana, Rajasthan and Delhi state. Right now BoB have 99% shareholding in
Nainital Bank.

International expansion continued in 1976 with the opening of a branch in Oman and another
in Brussels. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged
in diamond cutting and jewellery having business in Antwerp, a major center for diamond
cutting.
22
Two years later, BoB opened a branch in New York and another in the Seychelles. Then in
1979, BoB opened a branch in Nassau, the Bahamas.
1980s
In 1980, BoB opened a branch in Bahrain and a representative office in Sydney, Australia.
BoB, Union Bank of India and Indian Bank established IUB International Finance, a licensed
deposit taker, in Hong Kong. Each of the three banks took an equal share. Eventually (in
1999), BoB would buy out its partners.

A second consortium or joint-venture bank followed in 1985. BoB (20%), Bank of India
(20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established
Indo-Zambia Bank in Lusaka. That same year BoB also opened an Offshore Banking Unit
(OBU) in Bahrain (Gulf).
Back in India, in 1988, BoB acquired Traders Bank, which had a network of 34 branches in
Delhi.
1990s
In 1992, BoB opened an OBU in Mauritius, but closed its representative office in Sydney.
The next year BoB took over the London branches of Union Bank of India and Punjab &
Sind Bank (P&S). P&S's branch had been established before 1970 and Union Bank's after
1980. The Reserve Bank of India ordered the takeover of the two following the banks'
involvement in the Sethia fraud in 1987 and subsequent losses.

Then in 1992 BoB incorporated its operations in Kenya into a local subsidiary. The next year,
BoB closed its OBU in Bahrain.

In 1996, BoB Bank entered the capital market in December with an Initial Public Offering
(IPO). The Government of India is still the largest shareholder, owning 66% of the bank's
equity.

In 1997, BoB opened a branch in Durban. The next year BoB bought out its partners in IUB
International Finance in Hong Kong. Apparently this was a response to regulatory changes
following Hong Kong's reversion to the People's Republic of China. The now wholly owned
subsidiary became Bank of Baroda (Hong Kong), a restricted license bank. BoB also
acquired Punjab Cooperative Bank in a rescue. BoB incorporate a wholly–owned subsidiary,
BOB Capital Markets, for broking business.
23
In 1999, BoB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly
had 64 branches, including four in Delhi. In Guyana, BoB incorporated its branch as a
subsidiary, Bank of Baroda Guyana. BoB added a branch in Mauritius and closed its Harrow
Branch in London.
2000s

In 2000 BoB established Bank of Baroda (Botswana). The bank has three banking offices,
two in Gaborone and one in Francistown. In 2002, BoB converted its subsidiary in Hong
Kong from deposit taking company to a Restricted License Bank.

In 2002 BoB acquired Benares State Bank (BSB) at the Reserve Bank of India's request. BSB
had been established in 1946 but traced its origins back to 1871 and its function as the
treasury office of the Benares state. In 1964 BSB had acquired Bareilly Bank (est. 1934),
with seven branches in western districts of Uttar Pradesh; BSB also had taken over Lucknow
Bank in 1968. The acquisition of BSB brought BoB 105 new branches. Lucknow Bank, a unit
bank with its only office in Aminabad, had been established in 1913. Also in 2002, BoB
listed Bank of Baroda (Uganda) on the Uganda Securities Exchange (USE). The next year
BoB opened an OBU in Mumbai.

In 2004 BoB acquired the failed south Gujarat Local Area Bank. BoB also returned to
Tanzania by establishing a subsidiary in Dar-es-Salaam. BoB also opened a representative
office each in Kuala Lumpur, Malaysia, and Guangdong, China.

In 2005 BoB built a Global Data Centre (DC) in Mumbai for running its centralised banking
solution (CBS) and other applications in more than 1,900 branches across India and 20 other
counties where the bank operates. BoB also opened a representative office in Thailand.
In 2006 BoB established an Offshore Banking Unit (OBU) in Singapore.
In 2007, its centenary year, BoB's total business crossed 2.09 trillion (short scale), its
branches crossed 2000, and its global customer base 29 million people. In Hong Kong, Bank
got Full Fledged Banking license and business of its Restricted License Banking subsidiary
was taken over Bank of Baroda branch in Hong Kong w.e.f.01.04.2007.

24
In 2008 BoB opened a branch in Guangzhou, China (02/08/2008) and in Kenton, Harrow
United Kingdom. BoB opened a joint venture life insurance company with Andhra Bank and
Legal & General (UK) called IndiaFirst Life Insurance Company.

In 2009 Bank of Baroda (New Zealand) was registered.[10] As of 2017 BoB (NZ) has 3
branches: two in Auckland, one in Wellington.[11]
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 Bank.

In 2011 BoB opened an Electronic Banking Service Unit (EBSU) at Hamriya Free Zone,
Sharjah (UAE). It also opened four new branches in existing operations in Uganda, Kenya
(2), and Guyana. BoB closed its representative office in Malaysia in anticipation of the
opening of its consortium bank there. BoB received 'In Principle' approval for the upgrading
of its representative office in Australia to a branch. Bob also acquired Mumbai-based Memon
Cooperative Bank, which had 225 employees and 15 branches in Maharashtra and three in
Gujarat. It had to suspend operations in May 2009 due to its precarious financial condition.

The Malaysian consortium bank, India International Bank Malaysia (IIBM), finally opened in
Kuala Lumpur, which has a large population of Indians. BOB owns 40%, Andhra Bank owns
25%, and IOB the remaining 35% of the share capital. IIBM seeks to open five branches
within its first year of operations in Malaysia, and intends to grow to 15 branches within the
next three years.

On 17 September 2018, the Government of India proposed the merger of Dena Bank and
Vijaya Bank with the Bank of Baroda, pending approval from the boards of the three banks.
[12] The merger was approved by the Union Cabinet and the boards of the banks on 2
January 2019. Under the terms of the merger, Dena Bank and Vijaya Bank shareholders
received 110 and 402 equity shares of the Bank of Baroda, respectively, of face value ₹2 for
every 1,000 shares they held. The merger came into effect on 1 April 2019.[13] Post-merger,
the Bank of Baroda is the third largest bank in India, after State Bank of India and HDFC
Bank. The consolidated entity has over 9,500 branches,[14] 13,400 ATMs, 85,000 employees
and serves 120 million customers.[15]
25
Bank of Baroda announced in May 2019 that it would either close or rationalise 800–900
branches to increase operational efficiency and reduce duplication post-merger. The regional
and zonal offices of the merged companies would also be closed. PTI quoted an unnamed
senior bank official as stating that Bank of Baroda would look to expand in eastern India as it
already had a strong presence in the other regions.
Subsidiaries

BOB Capital Markets (BOBCAPS) is a SEBI-registered investment banking company

based in Mumbai, Maharashtra.[17] It is a wholly owned subsidiary of Bank of Baroda.[18]
Its financial services portfolio includes initial public offerings, private placement of debts,
corporate restructuring, business valuation, mergers and acquisition, project appraisal, loan
syndication, institutional equity research, and brokerage.

26
Vision & Mission:

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

holders' value through concern, care and competence.

27
 AWARDS & ACCOLADES

The L&D innovation platform and tech summit & awards 2020 - Best use of
Online Learning – Baroda Radio & Best Learning Platform implementation of
the year – Baroda Gurukul
We have also won -2- awards in The L&D innovation platform and tech summit & awards
2020 for our Online Learning initiatives and Learning platform implementation. We have
also won -2- awards in The L&D innovation platform and tech summit & awards 2020 for
our Online Learning initiatives and Learning platform

World HRD Congress -2019 - Best Use of Technology “ Baroda Radio” &
Innovation in Training “Life begins at 60”
World HRD Congress -2019 - Best Use of Technology “ Baroda Radio” & Innovation in
Training “Life begins at 60” World HRD Congress is organizing these awards for more than
25 years and we have won -2- awards in -2- different category. Last year also we have
received 2 awards from World HRD Congress.

Brandon Hall, HCM Excellence award 2019 - Best use of Mobile Learning
Brandon Hall, HCM Excellence award 2019 - Best use of Mobile Learning The Excellence
Awards recognize the best organizations that have successfully deployed programs,
strategies, modalities, processes, systems, and tools that have achieved measurable results.
The awards attract entrants from leading corporations around the world, as well as mid-
market and smaller firms. Our Bank has also participated in the Mobile Learning category
and won award for Best use of Mobile Learning among many participants around the world.

Bank of Baroda Apex Academy Research Team of Baroda bagged the 3rd prize
in Technology Category for their paper on the theme 'Technological
Development in Banking and Payment Systems' at the 5th International Youth
Symposium by Gujarat University.
Bank of Baroda Apex Academy Research Team of Baroda bagged the 3rd prize in
Technology Category for their paper on the theme 'Technological Development in Banking
and Payment Systems' at the 5th International Youth Symposium by Gujarat University.
Bank of Baroda Apex Academy Research Team of Baroda bagged the 3rd prize in
Technology Category for their paper on the theme 'Technological Development in Banking
and Payment Systems' at the 5th International Youth Symposium by Gujarat University.

Bank of Baroda was conferred the Rajbhasha Kirti award by Shri Amit Shah,
Union Minister of Home Affairs
Union Minister of Home Affairs Shri Amit Shah presents Rajbhasha Kirti Award to Shri S.
L. Jain, Executive Director, Bank of Baroda Bank of Baroda, country’s second largest public
sector bank, was recently awarded the Rajbhasha Kirti Award for the year 2018-19 under ‘B’
linguistic region. The award was given to the bank for exceptional achievement in
implementing the official language policy, consecutively for the third year in a row. The
28
award was facilitated by the honourable Union Minister of Home Affairs Shri Amit Shah to
Shri Shanti Lal Jain, Executive Director, Bank of Baroda in presence of honourable Ministers
of State for Home Affairs Shri Nityanand Rai and Shri. G. Kishan Reddy in a function held in
New Delhi on Hindi Divas.

Bank of Baroda awarded ‘National Award for Excellence in Training &

Development’ for Excellence in Training & Development and ‘National Awards
for Best in Class Learning & Development’ for Best Deployment of a Learning
Management System.
Bank of Baroda awarded ‘National Award for Excellence in Training & Development’ for
Excellence in Training & Development and ‘National Awards for Best in Class Learning &
Development’ for Best Deployment of a Learning Management System. Bank of Baroda
awarded ‘National Award for Excellence in Training & Development’ for Excellence in
Training & Development and ‘National Awards for Best in Class Learning & Development’
for Best Deployment of a Learning Management System.

SKOCH ‘Order of Merit’ Award for Baroda Anubhuti (Enhancing Employee

Experience) on 29.06.2019
SKOCH ‘Order of Merit’ Award for Baroda Anubhuti (Enhancing Employee Experience) on
29.06.2019

SKOCH ‘Order of Merit’ Award for Project SparshPlus (Human Touch for
Business Excellence) on 29.06.2019
SKOCH ‘Order of Merit’ Award for Project SparshPlus (Human Touch for Business
Excellence) on 29.06.2019

Bank of Baroda awarded the National Award for outstanding performance in

SHG Financing during FY 2018-19, among the Public Sector Banks.
Bank of Baroda awarded the National Award for outstanding performance in SHG Financing
during FY 2018-19, among the Public Sector Banks. Proactive approach and initiatives of
Bank of Baroda in SHG Bank Linkage has been acknowledged by DAY-NRLM, Ministry of
Rural Development, GoI. BOB has been awarded the National Award for their outstanding
performance in SHG Financing during FY 2018-19, among the Public Sector Banks. Mr.
B.R. Patel, General Manager- Chief Coordination, Agriculture & FI received the award from
Ms Leena Johri-IAS, Joint Secretary MoRD, GoI, in presence of Shri Sanjeev Kumar, Addl.
Secretary and Financial Advisor. MoRD, GoI and Sh Mithilesh Kumar, GM, NABARD,
during Consultation on Annual Plan of SHG Credit Linkage for FY 2019-20, on 11th June
2019 at New Delhi. Our sponsored RRB, Baroda Rajasthan Kshetriya Gramin Bank also got
National Award for SHG Linkage 2018-19 among RRBs in Northern Region.

Bank of Baroda bags an award “Winner for the Most Customer Centric Bank
Using Technology” at the IBA Banking Technology 2019 Awards Function, held
at St. Reges, Mumbai.
Bank of Baroda bags an award “Winner for the Most Customer Centric Bank Using
Technology” at the IBA Banking Technology 2019 Awards Function, held at St. Reges,
Mumbai.

29
 ACHEIVEMENTS

Bank of Baroda has been ranked among the top 50 companies in India on People
Capital Index(PCI)

Bank of Baroda has been ranked among the top 50 companies in India on People Capital
Index(PCI) which is brought out by HR analytics and assessment firm, Jombay in partnership
with Job portal site Naukri.com and British Standards Institute (BSI)

International presence

Bank of Baroda, Manchester

The bank has 107 branches/offices in 24 countries (excluding India) including 61
branches/offices of the bank, 38 branches of its 8 subsidiaries and 1 representative office in
Thailand. The Bank of Baroda has a joint venture in Zambia with 16 branches

Bank of Baroda became the first National Supporter (Indian sponsor) of the FIFA U-17
World Cup India 2017, the first football World Cup to be hosted in India[29]

Bank of Baroda acquired the semi naming rights of Sikanderpur Metro Station in
Gurugram. This is the first time that a public sector bank has bagged the naming right of a
metro station.[26] They followed a similar approach with Mumbai Metro where Andheri
metro station has been named as Bank of Baroda Andheri[27]

30
BRANDS

Domestic
Subsidiary

 Baroda Asset Management India Limited (Formerly known as Baroda

Pioneer Asset Management Company Limited)

 Baroda Global Shared Services Limited

 BOB Financial Solutions Limited

 BOB Capital Markets Ltd.

 Nainital Bank Ltd.

Joint Venture Company (J.V.)

 IndiaFirst Life Insurance Company Limited

 Baroda Uttar Pradesh Gramin Bank

 Baroda Rajasthan Gramin Bank

 Baroda Gujarat Gramin Bank

Overseas

Subsidiary

 Bank of Baroda (Botswana) Ltd.

 Bank of Baroda (Kenya) Ltd.

 Bank of Baroda (Uganda) Ltd.

 Bank of Baroda (Guyana) Inc.

31
  Bank of Baroda (New Zealand) Ltd.

 Bank of Baroda (Tanzania) Ltd.

 Bank of Baroda (Trinidad & Tobago) Ltd.

 Bank of Baroda (UK) Ltd.

Associate

 Indo-Zambia Bank Ltd. (Lusaka)

 India International Bank Malaysia Berhad

Board of Directors

Managing Director & CEO

Mr. Shri Sanjiv Chadha Has over 32 years’ experience in Banking having started his
career with SBI in 1987.

Prior to joining Bank of Baroda, Shri Sanjiv Chadha was working as DMD, SBI and MD &
CEO of SBI Capital Markets Ltd., the Merchant and Investment Banking arm of SBI.

He served in various geographical locations of SBI spread across different circles and abroad.
Some of his previous assignments includes Executive Secretary to the Chairman of the SBI
Group. He has worked in SBI’s Los Angeles Office and was also UK Regional Head.

Executive Directors:

Mr. Murali Ramaswami has joined as Executive Director in Bank of Baroda on

01.10.2019. Mr. Murali Ramaswami is an MBA, Certified Cost & Works Accountants
(AICWA) with Professional Qualification of CAIIB. Prior to joining the Board of Bank of

32
Baroda as Executive Director on 01.10.2019, he served on the Board of Vijaya Bank as an
Executive Director from 19.02.2018 till 31.03.2019.

Shri Shanti Lal Jain is a Post Graduate in Commerce, with Professional Qualification
of Chartered Accountant, Company Secretary and CAIIB. Prior to joining Allahabad Bank,
he worked in various Industries for about 6 years. He joined Allahabad Bank in 1993 in
Middle Management Grade/Scale-II and reached upto General Manager.

Shri V. S. Khichi is an MBA (Finance and Marketing), with Professional Qualifications

of CAIIB and Associate in Life Insurance. Prior to joining Bank of Baroda, he was working
as Field General Manager (Gujarat Operations) in Dena Bank.

Shri Ajay K Khurana joined as Executive Director in Bank of Baroda on 01.04.2020.

He is a Post graduate in Business Management with Professional Qualification of CAIIB.
Prior to joining the Board of Bank of Baroda as Executive Director on 01.04.2020, he served
on the Board of Syndicate Bank as an Executive Director from 20.09.2018 till 31.03.2020

Non-Executive Chairman

Dr. Hasmukh Adhia is an officer of Indian Administrative Service, who retired on 30th
November, 2018 as Union Finance Secretary & Revenue Secretary in Government of India.
He is at present non-executive Chairman of Bank of Baroda, and also the Chancellor of
Central University of Gujarat. He also serves as a member of Board of Governors of Indian
Institute of Management Bangalore.

33
Directors:

Mr. Amit Agrawal has been appointed as the Government Nominee Director of Board of
the Bank vide Government of India notification dated 24th January, 2020 under section 9 of
the Banking Companies (Acquisition and Transfer of Undertaking) Act.

Shri Ajay Kumar has been appointed as the Government Nominee Director of Board of
the Bank with effect from January 13, 2017 vide Government of India notification dated
January 13, 2017 under section 9 of the Banking Companies (Acquisition and Transfer of
Undertaking) Act

Smt. Soundara Kumar has joined as a Director on our Board w.e.f. 24th December,
2017 representing shareholders of the Bank for a period of -3- years. She has done her
graduation in Mathematics from Stella Maris College, Chenna

Dr.Bharatkumar D.Dangar has joined as a Director on our Board w.e.f 24th

December, 2014 representing shareholders of the Bank for a period of 3 years. He currently
serves as Assistant Professor in Faculty of Technology and Engineering of The M.S.
University of Baroda. His education accomplishments include Electrical Engineering with
distinction and Masters in Engineering with specialization in Microprocessor systems and
application. As a student, he was actively involved in pursuing students welfare.

Mr. Srinivasan Sridhar joined our Board as a Director representing Shareholders of the
Bank. His appointment is for a period of 3 years and is with effect from December 12, 2018.
Mr. Sridhar is a B.Com(Hons.) graduate from Delhi University and is also a Chartered
Accountant.

Prof. Biju Varkkey was nominated as a Part Time Non-Official Director w.e.f. 21st
October, 2019 by the Central Government u/s 9(3) (h) and 9(3-A) of The Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970, for a period of 1 year or until further
orders, whichever is earlier.

34
 CHAPTER- IV
DATA ANALYSIS AND INTERPRETATION

35
 DATA ANALYSIS
AND INTERPRETATION
Table I : Net NPA and Ratio of Net NPA of Banks (Rs. in Crores)

BANK OF BARODA
HDFC Bank AXIS Bank
Year Bank
NNPA NNPA% NNPA NNPA% NNPA NNPA%
2014-15 352.33 0.2 1860.84 0.73 472.64 0.25
2015-16 468.95 0.2 2230.56 0.77 704.13 0.32
2016-17 820.03 0.3 3297.96 0.97 1024.62 0.4
2017-18 896.28 0.2 6255.53 1.61 1316.71 0.44
2018-19 1320.37 0.28 12963.08 2.98 25.22 0.7
Average 771.592 0.236 5321.594 1.412 708.664 0.422

Source: Annual Reports

14000
12000
10000
2014-15
8000
2015-16
6000 2016-17
2017-18
4000
2018-19
2000 Average
0
NNPA NNPA% NNPA NNPA% NNPA NNPA%
HDFC Bank BANK OF BARODA AXIS Bank
Bank

INTERPRETATION:
Table II exhibits that the significance of net NPAs of the impressive number of banks has
been dependably extended in the midst of the significant lots of concentrate except for 2015-
16 if there ought to be an event of Axis Bank. In the event that there ought to be an event of
HDFC Bank net NPAs was Rs. 352.33 crores in the year 2014-15 and rose to Rs. 1320.37 in
2015-16. Of course, it extended from Rs. 1860.84 crores to Rs. 12963.08 crores in five years
in case of BANK OF BARODA Bank. The net NPAs of Axis Bank was Rs. 472.64 crores in
2014-15 and it rose to Rs. 1316.71crores in 2014-15 with an unexpected drop to Rs. 25.22
crores in 2015-16. The typical net NPAs of both HDFC Bank and Axis Bank are underneath
1% where as though there ought to emerge an event of BANK OF BARODA Bank is over
1%. The going with Figure 2 exhibits the extent of Net NPAs of the three picked banks from
the year 2012 to 2015-16.

36
We presently attempt to analyze whether the NPAs have any noteworthy effect on the net
benefit of the separate banks.
Table II: Correlation coefficient between Gross NPA and Net Profit (Rs. in Crores)
Source: Annual Reports

BANK OF BARODA
HDFC Bank AXIS Bank
Bank
Year
GNPA Net Profit GNPA Net Profit GNPA Net Profit
2014-15 1999.39 5167.07 9475.33 6465.26 1806.3 4242.21
2015-16 2334.64 6726.28 9607.75 8325.47 2393.42 5179.43
2016-17 2989.28 8478.4 10505.8 9810.48 3146.41 6217.67
2017-18 3438.38 10215.9 15094.7 11175.4 4110.19 7357.82
2018-19 4392.83 12296.2 26221.3 9726.29 60.88 8223.66

Correlation
0.992747 0.448265 -0.158704
Coefficient

37
 30000

26221.3

25000

20000

15094.7
15000

12296.2

11175.4
10505.8
10215.9
10000 9607.75 9810.48
9726.29
9475.33
8478.4 8325.46999999992 8223.66
7357.82
6726.28 6465.26 6217.67
5167.07 5179.43
5000 4392.83
4110.19 4242.21
3438.38
2989.28 3146.41
2334.64 2393.42
1999.39 1806.3

0.992747 0.448265 60.88

0
GNPA Net Profit GNPA Net Profit -0.158704000000001
GNPA Net Profit
HDFC Bank BANK OF BARODA Bank AXIS Bank

-5000

2014-15 2015-16 2016-17

2017-18 2018-19 Correlation Coefficient
38
INTERPRETATION:
The following Figure 3 shows the correlation coefficient between net profit and gross
NPAs. It has been seen that correlation coefficient is positive in case of HDFC Bank and
BANK OF BARODA Bank whereas in case of Axis Bank it is negative.

39
 1. DO YOU HAVE A BANK ACCOUNT?
RESPONCE YES 98
NON RESPONCE NO 2
TOTAL   100

DO YOU HAVE A BANK ACCOUNT ?

NO
2%

YES
98%

INTERPRETATION:

As appeared by the above design the component of respondents having cash related
equality is by and large especially high i.e., 98% and the fundamental elucidation for it is that
individuals feel themselves safe while saving tremendous extents of their cash in banks
furthermore get fervor on such cash from the bank, and can request their cash back as and
when required. There are correspondingly individuals who don't keep their cash set away in
the bank and one of the certified reason we were told by the respondents is that they don't
have hold finances whatever they win gets spent.

40
 2. IN WHICH BANK DO YOU HAVE AN ACCOUNT?

BANK OF BARODA 27
BOI 17
BANK OF BARODA BANK 25
OTHERS 31
TOTAL 100

HSBC; 27

BOI; 17

TOTAL; 100
ICICI BANK; 25

OTHERS; 31

INTERPRETATION:

As demonstrated by the above fig BANK OF BARODA has the most important rate when
stood out from various banks as having most noteworthy number of customers and the reason
told by the respondents was that the bank being the first and old in the state is being trusted
by the overall public because of the kind of organizations and workplaces it provides for its
customers. BANK OF BARODA has moreover got the incredible dimension of customers in
the state as it is the other totally trustworthy bank in the state. BOI and distinctive banks the
state also have incredible business spread wherever all through the region of T.G.

41
 3. HAVE YOU TAKEN THE FACILITY OF LOAN FROM YOUR BANK?

RESPONCE YES 70

NON RESPONCE NO 30

TOTAL   100

30%

RESPONCE YES
NON RESPONCE NO

70%

INTERPRETATION:

As indicated by the review just 60% of respondents concurred that they have taken the
office of credits from their particular banks, and practically 40% of them were the
individuals who didn't had taken the office of advance from bank

42
 4. FROM WHICH BANK HAVE YOU TAKEN THE LOAN?

BANK OF BARODA BANK 26

BANK OF BARODA 19
BOI 12
OTHERS 15
NIL 28
TOTAL 100

13%

10%
ICICI BANK
HSBC
BOI
50% 6% OTHERS
NIL
TOTAL
8%

14%

INTERPRETATION:

The above chart delineates that the most outrageous number of credits and advances have
been raised through BANK OF BARODA BANK as 32% of respondents said that they
have taken development from BANK OF BARODA bank. After BANK OF BARODA
BANK expect genuine employment in pushing advances to the all inclusive community as
it contributes 18% of the whole model measure. In any case, a large portion of people
denied and told that they haven't assumed acknowledgment from any bank. BOI with
Other banks contribute less rate towards advances and advances given to people.

43
 5. ARE YOU REPAYING YOUR LOAN?

RESPONSE YES 64
NON-RESPONSE NO 16
OTHER NILL 20
TOTAL   100

20%

RESPONSE YES
NON-RESPONSE NO
16% OTHER NILL

64%

INTERPRETATION:

While getting some information about the reimbursement of advance to respondents lion's
share concurred that they are reimbursing their credit at normal interims which contributes
practically 48% of the entire example size and 40% of them have not taken the office of
advance and 12% of the entire respondents were the individuals who were not reimbursing
of their advance because of some sensible issues

44
6. ARE YOU AWARE OF THE PRESENT STATUS OF YOUR LOAN?

RESPONSE YES 56
NON-RESPONSE NO 24
OTHER NOT RAISED 20
TOTAL   100

20%

RESPONSE YES
NON-RESPONSE NO
56% OTHER NOT RAISED

24%

INTERPRETATION:

As per the above outline when respondents were gotten some information about the
present status of their credit larger part of them who have taken advance from the bank
know the status of their advance and are reimbursing it at customary interims in portions.
40% of respondents have not taken the credit at all from bank. About 12% were the
individuals who don't have the foggiest idea about the status of their credit as they didn't
revealed the way that why they were not ready to know the status of their advance and told
there are some close to home reasons.

45
 7. ARE YOU INTERESTED IN FUTURE TO OPEN A BANK
ACCOUNT?

RESPONCE YES 65

NON RESPONCE NO 35

TOTAL   100

35%

RESPONCE YES
NON RESPONCE NO

65%

INTERPRETATION:

In above layout about 70% respondents agreed about their excitement for opening
monetary adjusts in future and the essential reason they told was that they feel protected
and safe to keep their money with bank rather than keeping it at their own one of a kind
consideration. 40% of respondents were the people who are not fascinated to open money
related adjusts in future the reason they told that it is conceivable that they have different
existing records in banks or they are content with their present records

46
 8. IN WHICH BANK WILL YOU BE INTERESTED IN OPENING A
BANK ACCOUNT?

BANK OF BARODA 28
BOI 13
BANK OF BARODA BANK 24
OTHERS 14
NILL 21
TOTAL 100

100
100
90
80
70
60
50
40 28
24 21
30
13 14
20
10
0
HSBC BOI ICICI BANK OTHERS NILL TOTAL

Series1

INTERPRETATION:

The above diagram shows the reaction of individuals towards those banks in which they
should need to open their records in not too difficult to reach future, as per above chart it
unmistakably uncovers that individuals like to have their cash in BANK OF BARODA
BANK and the standard elucidation for it is that BANK OF BARODA BANK is a champion
among the most settled budgetary foundation existing in the condition of ap. Other immense
bit of blueprint is confirmed by BANK OF BARODA as it is also one of the confided in
banks in the state, banks like BOI and other private banks have less bit when showed up
diversely in connection to BANK OF BARODA BANK and BANK OF BARODA this
unquestionably exhibits BANK OF BARODA BANK and BANK OF BARODA are working
up to the needs for individuals.

47
 9. ANY OTHER FAMILY MEMBERS ACCOUNT?

RESPONSE YES 88

NON-RESPONSE NO 12
TOTAL   100

12%

RESPONSE YES
NON-RESPONSE NO

88%

INTERPRETATION:

The above diagram demonstrates that the enthusiasm of individuals towards the banks
as it demonstrates the level of relatives of respondents having financial balances, and the real
bit of the graph shows that relatives are having ledgers having a place from a similar family
and there is less bit of individuals who don't have some other ledger acknowledge one that of
respondent himself

48
 10. HIS/HER EXPERIENCE WITH THE BANK?

EXCELLENT 18
VERY GOOD 21
GOOD 26
SATISFACTORY 18
NILL 17
TOTAL 100

SATISFACTORY;
4 NILL; 4

EXCELLENT; 7

VERY GOOD; 9

GOOD; 26

INTERPRETATION:

In the above chart we can clearly see that people are enjoying good experience with their
bank because of the kind of facilities and services they provide.

49
10 Deposits growth CAGR (from FY16 to
FY17)  
BANK
OF
AXIS BAROD
BANK OF BARODA BOB BANK A PNB SBI total
21% 13% 23% 18% 11% 14% 100%

11%

7%
11 Deposits growth CAGR
(from FY16 to FY17) HSBC
BOB
12%
AXIS BANK
50%
ICICI
PNB
SBI
9% total

6%
7%

INTERPRETATION:
CAGR ratio from the year 2018-2019 BANK OF
The above graph shows
BARODA has 35 %.it indicates moving well.

50
11 DEPOSIT-INVESTMENT-ADVANCES (RS.CRORE) of both sector banks and
comparison among them, year 2018-2019.

BANK DEPOSIT INVESTMENT ADVANCES

BANK OF BARODA 87626 33705 59661

AXIS 100769 49394 63427
BANK OF BARODA 244431 111454 225616
KOTAK 16424 9142 15552
INDUSIND 19037 6630 12795
TOTAL 468287 210325 377051

DEPOSIT

HSBC
9%
AXIS
11%

TOTAL
50%

ICICI
26%

INDUSIND KOTAK
2% 2%

The above graph shows deposits & investments from the year 2018-2019 BANK OF
BARODA has 87626 &33705.

51
 12 . INVESTMENTS & ADVANCES

       
BANK DEPOSIT INVESTMENT ADVANCES

BANK OF BARODA 152034 43870 106701

BOI 150012 41803 113476
DENA 33943 10282 23024
PNB 166457 53992 119502
UBI 103859 33823 74348
TOTAL 606305 183770 437051
700000

606305
600000

500000

437051

400000

300000

200000 183770
166457
152034 150012

113476 119502
106701 103859
100000
74348
53992
43870 41803 33943 33823
23024
10282
0 0 0
0
BANK BANK OF BOI DENA PNB UBI TOTAL
BARODA

Series1 Series2 Series3

52
The above graph shows deposits & investments from the year 2018-2019 BANK OF
BARODA has 152034 & 43870.

53
 13 .BANK OF BARODA AND PUNJAB NATIONAL BANK:- 2018-2019

BANK DEPOSIT INVESTMENT ADVANCES

BANK OF BARODA 244431 111454 225616
PNB 166457 53992 119502

3; 225616
1; 244431

2; 111454

The above graph shows deposits & investments from the year 2018-2019 BANK OF
BARODA &PNB has 244431 & 166457.
The above graph shows deposits & investments from the year 2018-2019 BANK OF
BARODA &PNB has 111454 & 53992.

54
 14. BANK OF BARODA AND PUNJAB NATIONAL BANK:- 2018-2019
BANK DEPOSIT INVESTMENT ADVANCES

BANK OF BARODA BANK 244431 111454 225616

PNB 166457 53992 119502

300000

250000 244431
225616

200000
166457
150000
111454 119502
100000
53992
50000

0
DEPOSIT INVESTMENT ADVANCES

BANK OF BARODA BANK PNB

The above graph shows deposits & investments from the year 2018-2019 BANK OF
BARODA &PNB has 152034 & 43870.

55
 15. Gross NPA & NET NPA 2018-2019

BANK GROSS NPA NET NPA

 

BANK OF BARODA 1.46 0.35

BANK

BOI 1.48 0.45

DENA 2.37 1.16
PNB 2.09 0.45
UBI 1.82 0.59

2.5 2.37
2.09
2 1.82

1.46 1.48
1.5
1.16
1
0.59
0.5 0.45 0.45
0.35

0
BANK OF BOI DENA PNB UBI
BARODA
BANK

GROSS NPA NET NPA

The above graph shows GROSS NPA & NET NPA from the year 2018-2019BANK OF
BARODA has 1.46 & 0.35.

56
 CHAPTER-5
FINDINGS SUGGESTIONS,
CONCLUSIONS

57
 FINDINGS:
BANK OF BARODA bank is the exceedingly trustable bank of the
region of telangana.

•percentage of recuperation of Npa,s was the most fundamental in the nation

near the fulfillment of the essential quarter of current year.

•Bank has mammoth number of clients in the entire state other than the
contenders like BANK OF BARODA, boi, and hdfc, and so forth.

1. Bank should have its very own opportunity FICO score office which
should survey the money related point of confinement of the borrower before
than credit office.

2. Uncommon records should be made of the clients where month to month

credit obsession report should be made.

3. There should be authentic checking of the modifying accounts in light of the

fact that there is every credibility of the credit slipping into NPAs class yet
again.

4. Legitimate planning is imperative to the staff of the bank at the fitting

measurement either nonstop methodology. That how they ought to deal with
the issue of NPAs and what steps should be taken to decrease the NPAs.

58
 SUGGESTIONS
. The information gathered through Questionnaire subject to NPA's especially with
phenomenal reference to BANK OF BARODA BANK plainly uncover that individuals
indicated valuable reaction particularly for BANK OF BARODA. In the area of Telangana
BANK OF BARODA being the most settled and first money related foundation is essentially
trusted and beneficial bank in the locale of Telangana .
Eventually wrapping up particularly concerning NPAs with extraordinary reference to
BANK OF BARODA bank, If bank has given colossal extents of credits and advances to its
clients and enormous total out of these have changed into NPAs. The bank masters gave me
the quick overview of number of its clients who have changed into NPAs and have been
communicated as defaulters as not being able to reimburse the advances raised by them. I
most unquestionably went to them to fill my review and some of them thoroughly couldn't
avoid disavowing being the defaulters and even some of them absolutely couldn't avoid
nullifying the way in which that they have raised the improvement from the bank; this plainly
demonstrates their craving and uncovers that the charge lies with them. A few uncovered that
because of disappointment of their motivation for which credit was raised was not cleaned.
If there should arise an occurrence of NPAs bank has made two or three stages so as
to make the recuperation of NPAs. In the fundamental quarter of current money related year
2016 bank has recuperated in every way that really matters 70% of NPAs which is certain
sign for the bank.
Bank should keep up appropriate record of the advances and advances offered out to
its clients with time length referenced and there ought to be genuine recognize the heap up to
evaluate and control the advances accommodated clients. Defaulters ought to be given
constant and ought to be affected to pay their particular responsibilities to bank. All around a
requesting move should be made in light of the way that NPA one of the authentic peril
looked by every single bank in the nation and open zone banks have the most raised NPAs
when showed up distinctively in connection to private banks and overall money related
establishments

59
 CONCLUSIONS
1. It is endorsed that the right documentation and check to be made before approving the
development.

2. constant participations must be stayed aware of the customers to screen their

development portion.
3. Strict estimates must be taken while issuing or embracing the development. the
measures can consolidate check of occupation and pay slips, affirmation of securities and
such.
4. When each and every possible undertaking for recovery is shelled simply decision is
to proceed with legal movement and this should be quick commonly this will be costly.
5. it is moreover keen for the bank to carryout remarkable expository audit of all cash
related and business trades and books of records of the borrower association when there is
believability of the distraction of the benefits and bobble.
6. Independent settlement approach should be progressively demanding and speedier
and the decision made by the settlement warning gathering should tie the two borrowers and
credit masters and any of them fail to seek after the decision of the settlement board should
be rebuked cruelly.
7. the bank should turn out with new and inventive methods to recovered npa and should
goad customers to pay their commitment in time.

60
 BIBLIOGRAPHY
Books
 Pandey, I.M. (2006), Financial Management, 7 th Ed. New Delhi:
Vikas Publishing House Pvt. ltd
 Kotler, P. (2006), Marketing Management, 12 th Ed. New Delhi:
Pearson Publishers Ltd.
 Gupta, Shashi K.(2007), Financial Management, 5 th Ed. Ludhiana:
Kalyani Publishers.
 Risk Management by Indian institute of banking and finance.
(Macmillan).
 IBA Bulletin (January 2016), (February 2017), Monthly journal published by Indian
Banks’ Associations.

WEBSITES:

www.BANK OF BARODAb.net
www.moneycontrol.com
www.rbi.org.in

"http://www.articlesbase.com/banking-articles/problems-and-recovery-of-npa-at-branch-
banks-1284736.html"

BOOKS AND ARTICLES:

 Annual report of The BANK OF BARODA LTD,TELANGANA.

 Magazines such as Business Economics.
 Newspapers such as Greater Telangana (Corporate Section), bank dairy,
bank magazine, catalogue etc.
 Yearly journals of The BANK OF BARODA LTD, TELANGANA.

61
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