UNIVERSITY OF MUMBAI

A RESEARCH STUDY ON
“BANK OF BARODA”

IN PARTIAL FULFILLMENT FOR BACHLER OF

COMMERCE
(ACCOUNTING AND FINANCE)
SEMESTER VI
2019-20
UNDER THE GUIDANCE OF
DR. NILESH EKNATH KOLI

SUBMITTED BY
MR. SAHIL VISHWAS MORE

JANARDAN BHAGAT SHIKSHAN PRASARAK SANSTHA

CHANGU KANA THAKUR ARTS, COMMERCE & SCIENCE
COLLEGE(AUTONOMOUS) NEW PANVEL (W) 410206

REACCREDITED WITH ‘A+’ GRADE BY NAAC (3RD CYCLE- CGPA3.61)

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 MARCH-2020
CERTIFICATE

This is to certify that Mr. Sahil Vishwas More has worked and duly completed his project
work for the degree of Master in Commerce under the faculty of commerce in Subject of
Bank of Baroda and his project is entitled, “A Research study on Bank of Baroda”
under my supervision.
I further certify that the and that entire work has been done by the learner my guidance
under no part of has been submitted previously for any Degree or Diploma of any
University.
It is her own work and facts reported by him personal finding and investigation.

Name and signature of Guiding

Teacher
Seal of
the
collage

Date of Submission:

2
 DECLARATION

I the undersigned Mr. SAHIL VISHWAS MORE here by. Declare that the work embodied
in this project work titled "BANK OF BARODA". forms my own contribution to the
research work carried out under the guidance of DR. NILESH EKNATH KOLI is a result
of my own research work and has not been previously submitted to any other university for
any other Degree/Diploma to this or any other University.
Wherever reference has been made to previous works of other, it has been clearlyIndicate as
such and included in the bibliography.
1, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

MR. SAHIL VISHWAS MORE

Certified by
Dr. Nilesh Eaknath Koli

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following as idealistic channel and fresh

dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance
to do this project.

I would like to thank my principal, Prof. (Dr) Vasant D. Barhate for

providing the necessary facilities required for completion of this project. I take
this opportunity to thank our coordinator DR NILESH EKNATH KOLI for
her moral support and guidance.

I would also like to express my sincere gratitude toward my project guide and
care made the whose guidance DR. NILESH EKNATH KOLI project
successful.

I would like to thank to College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peer who
supported me throughout my project.

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 INDEX

SR NO. PARTICULAR PAGE

NO.
Title Page 1
Certificate 3
Declaration 4
Acknowledgement 5

CHAPTER 1 INTRODUCTION 7 - 22
1.1 Introduction of Banking
1.2 History of Banking of India
1.3 Features of Bank
1.4 Advantages of Banking
1.5 Disadvantages of Banking
1.6 Types of Bank
1.7 Banks in India
1.8 Banking structure in India
1.9 Indian Banking Industry

CHAPTER 2 BANK OF BARODA 23 - 37

2.1 Introduction
2.2 History

CHAPTER 3 RESEARCH METHODOLOGY 38 - 41

2.1 Introduction
2.2 Objective of the study
2.3 Research Methodology
2.4 Limitation of study
2.5 Selection of study destination
2.6 Sample Size
CHAPTER 4 REVIEW OF LITERATURE 43 - 45

CHAPTER 5 DATA ANALYSIS, INTERPRETATION 46 - 77

AND PRESENTATION

CHAPTER 6 CONCLUSION 78 - 81

CHAPTER 7 BIBLIOGRAPHY 82 - 83

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 CHAPTER – 1
INTRODUCTION

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1.1 INTRDUCTION OF BANKING

DEFINITION OF BANK
Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of
money from the public, repayable on demand or otherwise and withdraw by cheque, draft or
otherwise."
- Banking Companies (Regulation) Act, 1949

ORIGIN OF THE WORD BANK:

The origin of the word bank is shrouded in mystery. According to one view point the Italian
business house carrying on crude from of banking were called banchibancheri" According to
another viewpoint banking is derived from German word "Branck" which mean heap or
mound. In England, the issue of paper money by the government was referred to as a raising
a bank.

ORIGIN OF BANKING:
Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking was
developed as it provides the safer place to store the money. This safe place ultimately evolved
in to financial institutions that accepts deposits and make loans i.e., modern commercial
banks.

Banking system in India

Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past
three decades India's banking system has several outstanding achievements to its credit. The
most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners
of the country. This is one of the main reasons of India's growth process.

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1.2 HISTORY OF BANKING OF INDIA

Banking in India has its origin as early or Vedic period. It is believed that the transitions from
many lending to banking must have occurred even before Manu, the great Hindu furriest,
who has devoted a section of his work to deposit and advances and laid down rules relating to
the rate of interest. During the mogul period, the indigenous banker played a very important
role in lending money and financing foreign trade and commerce.
During the days of the East India Company it was the tun of agency house to carry on the
banking business. The General Bank of India was the first joint stock bank to be established
in the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The
Bank of Hindustan is reported to have continued till 1906 While other two failed in the
meantime In the first half of the 19th century the East India Company established there
banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay
in1843. These three banks also known as the Presidency banks were the independent units
and functioned well. These three banks were amalgamated in 1920 and new bank, the
Imperial Bank of India was established on 27th January, 1921.
With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank
of India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI)
which is the Central bank was established in April, 1935 by passing Reserve bank of India act
1935. The Central office of RBI is in Mumbai and it controls all the other banks in the
country.
In the wake of Swadeshi Movement, number of banks with the Indian management were
established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of
Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were
nationalized and on 15th April 1980, 6 more commercial private sector banks were taken
over by the government.
The first bank in India, though conservative, was established in 1786. From 1786 till today.
The journey of Indian Banking System can be segregated into three distinct phases. They
areas mentioned below:
• Early phase from 1786 to 1969 of Indian Banks
• Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
• New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.

• Phase 1
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1804) and Bank of Madras (1843) as independent units and called it Presidency Banks.

8
These three banks were amalgamated in1920 and Imperial Bank of India was established
which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank
of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline
the functioning and activities of commercial banks, the Government of India came up with
The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949
as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with
extensive powers for the supervision of banking in India as the Central Banking Authority.
During those day's public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase 2
Government took major steps in this Indian Banking Sector Reform after independence.
In1955, it nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act as the
principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July,
1969, major process of nationalization was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was
nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under Government
ownership.
• The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country: 1949: Enactment of Banking Regulation Act.
• 1955: Nationalization of State Bank of India.
• 1959: Nationalization of SBI subsidiaries.
• 1961: Insurance cover extended to deposits.
• 1969: Nationalization of 14 major banks.
• 1971: Creation of credit guarantee corporation.
• 1975: Creation of regional rural banks.
• 1980: Nationalization of seven banks with deposits over 200crore.
After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

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Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

Phase 3
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimha, a committee was set up
by his name which worked for the liberalization of banking practices. The country is flooded
with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service
to customers. Phone banking and net banking is introduced. The entire system became more
convenient and swift Time is given more importance than money. The financial system of
India has shown a great deal of resilience. It is sheltered from any crisis triggered by any
external macroeconomics shock as other East Asian Countries suffered. This is all due to a
flexible exchange rate regime, the foreign reserves are high, the capital account is not yet
fully convertible, and banks and their customers have limited foreign exchange exposure.

1.3 FEATURES OF BANK

1. DEALING IN MONEY
Bank is a financial institution which deals with other people's money i.e. money given by
depositors.
2. INDIVIDUAL / FIRM / COMPANY
A bank may be a person, firm or a company. A banking company means a company which is
in the business of banking.
3. ACCEPTANCEOF DEPOSIT
A bank accepts money from the people in the form of deposits which are usually repayable
on demand or after the expiry of a fixed period. It gives safety to the deposits of its
customers. It also acts as a custodian of funds of its customers.
4. GIVING ADVANCES
A bank lends out money in the form of loans to those who require it for different purposes.
5. PAYMENT AND WITHDRAWAL
A bank provides easy payment and withdrawal facility to its customers in the form of
cheques and drafts, it also brings bank money in circulation. This money is in the form of
cheques, drafts, etc.

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 6. AGENCY AND UTILITY SERVICES
A bank provides various banking facilities to its customers. They include general utility
services and agency services.
7. PROFIT AND SERVICE ORIANTATION
A bank is a profit seeking institution having service oriented approach.
8. EVERINCREASINGFUNCTIONS
Banking is an evolutionary concept. There is continuous expansion and diversification as
regards the functions, services and activities of a bank.
9. CONNECTING LINK
A bank acts as a connecting link between borrowers and lenders of money. Banks collect
money from those who have surplus money and give the same to those who are in need of
money.
10. BANKING BUSINESS
A bank's main activity should be to do business of banking which should not be subsidiary to
any other business.

11. NAME IDENTITY

A bank should always add the word "bank" to its name to enable people to know that it is a
bank and that it is dealing in money.

1.4 ADVANTAGES OF BANKING

1. SAFETY OF PUBLIC WEALTH

Before the introduction of the modernized banking system, people used to save their money
in hard cash. They stored this cash in lockers, underground, with the grains, etc. there were so
many instances when the money got stolen, eaten by the rats or simply rot through the years.
However, the modern banking system completely eliminated the need to store hard cash. It
actually helps save a huge proportion of public wealth that used to get spoiled in storage.

2. AVAILABILITY OF CHEAP LOANS

Before modern banks were established, people would borrow money from local money
lenders, landlords, merchants or other wealthy individuals. These loans were given at
exorbitant interest rates that most people couldn’t afford to pay, in the process the borrower

11
would always remain in debt. It was a vicious cycle. Modern banks started providing cheaper
loans to the underprivileged section of the society, breaking the whole expensive loans
systems.

3. PROPELLANT OF ECONOMY
Banks create money with a system called credit creation. With the help of credit creation,
banks can lend a lot more money that the deposits that if holds. When banks lend than money
to agriculture, industries, small businesses, and service providers, they are actually helping
the economy grow exponentially. This, in turn, creates employment and spending power.
Overall this one function of the bank is so powerful that the entire economy of any country
relies on it.

4. ECONOMIES OF LARGE SCALE

An extremely important benefit of any bank is its deep and wide reach through the branch
banking system and the benefits of large- scale operations. The wider the bank can reach the
better services it can provide. Now a days banks provide services of net banking, card
payments, ATMs, etc. at even the most farfetched and backward areas. Dues to these large -
scale operations, the services have become extremely cheap, or sometimes even free.

5. DEVELOPMENT IN RURAL AREAS

Banks aid rural development in more than one way. Firstly, the government makes it
mandatory for the banks to lend to specialized sectors such as agriculture, rural infrastructure,
etc. this leads to the development of modern infrastructure and methods in rural areas,
thereby bringing in growth. Secondly, with the banks opening their branches in the backward
areas, the rural population has benefits of modern bank facilities such as check in accounts,
ATMs, locker facility, etc. furthermore, when a new bank branch opens in a village, it needs
facilities such as 24 hour electricity supply, internet connection, new staff etc. this creates
employment and the villagers can also benefit from facilities of electricity and internet.

6. GLOBAL REACH
Many banks operate at the multinational level, this has helped people and businesses in way
that was not possible before the establishment of modern banks. Multinational banks aids in
remittance pf cash, exchanging one currency for another; aids in export by transferring
documents and payments; lend money to government, institutions and other world
organisations. The reach of the banks is unlimited and it has helped in making the world a
global village.

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Though there are many benefits of the modern banks, it comes with its fair share of flaws.
Lets discuss the disadvantages of banks to understand it better.

1.5 DISADVANTAGES OF BANKING

1. CHANCES OF BANK GOING BANKCRUPT

The world economy goes through turbulent times every few years. Events such as great
depression of 1929, World War I & II, dot com bubble of 2000, or great recession of 2016,
etc. expose banks to unnatural risks. During delicate periods, if all the people decide to
withdraw their money from the bank, all at once, the bank will become bankrupt. Due to the
function of credit creation, banks never have enough money to pay all its customers at the
same time. People, without a doubt, will lose their money if the bank goes bankrupt.

2. RISK OF FRAUD AND ROBBERIES

The rise in internet banking has given rise in cybercrime as well. Now more people are
exposed to the risk of credit card thefts, stolen passwords, net banking frauds, etc. There have
been robberies where robbers have stolen millions of dollars through the internet, without
entering the bank premises physically. With the rise in internet banking, there will be a more
innovative way for conmen and robbers to cheat people. This leaves the public vulnerable.
This also increases the expenses that banks have to incur to safeguard their systems, which
are eventually charged from the customers.

3. RISK OF PUBLIC DEBT

This is not the risk of the bank per se, but this is the risk that people take on themselves while
dealing with a bank. Say a person is in the habit of maxing out his credit card every month
and repays the bare minimum then he will spiral into debt very fast. The habit of borrowing
more than a person can afford to repay is actually a personal bad habit, however, the easy
lending policies of banks add fuel to the fire. This can be damaging to people's personal
finances. It even affects businesses that take term loans and working capital loans from the
banks and cannot repay it. Comparatively fewer businesses are affected by debt epidemic, but
it still exists. This brings us to the conclusion that modern banks have benefited society in
many ways, and its drawbacks are such that can be easily overcome by proper policies and
due diligence efforts Thus overall the rise of banks has been a blessing for the economy and
the society

1.6 TYPES OF BANK

They are given below:

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 1. COMMERCIAL BANKS
These banks play the most important role in modern economic organisation. Their business
mainly consists of receiving deposits, giving loans and financing the trade of a country. They
provide short-term credit, i.e., lend money for short periods. This is their special feature.

2. EXCHANGE BANKS
Exchange banks finance mostly the foreign trade of a country. Their main function is to
discount, accept and collect foreign bills of exchange. They also buy and sell foreign
currencies and help businessmen to convert their money into any foreign money they need.
Their share in the internal trade of a country is usually small. In addition, they carry on
ordinary banking business too.

3. INDUSTRIAL BANKS
There are a few industrial banks in India. But in some other countries, notably Germany and
Japan, these banks perform the function of advancing loans to industrial undertakings.
Industries require capital for a long period for buying machinery and equipment. Industrial
banks provide this type of Mock capital. Industrial banks have a large capital of their own.
They also receive deposits for longer periods. They are thus in a position to advance long-
term loans.

Corporation of India (IFC1) in 1948. Its activities have since then been greatly enlarged. In
India, the Central Government set up an Industrial Finance Further the States have also set up
State Financial Corporations. The Central Government has also established the Industrial
Credit and Investment Corporation of India (ICICI) and the National Industrial Development
Corporation for the financing and promotion of industrial enterprises. In 1964 the Industrial
Development Bank of India (1DBI) was established as the apex or top term-lending
institution. These new institutions fill important gaps in our system of industrial finance.

4. AGRICULTURE OR CO-OPERATIVE BANKS

The main business of agricultural banks is to provide funds to farmers. They are worked on
the co-operative principle. Long-term capital is provided by land mortgage banks, nowadays
called land-development banks, while short-term loans are given by co-operative societies
and co-operative banks. Long-term loans are needed by the farmers for purchasing land or for
permanent improvements on land, while short-period loans help them in purchasing
implements, fertilizers and seeds. Such banks and societies are doing useful work in India.

5. SAVINGS BANKS
These banks (perform the useful service of collecting small savings. Commercial banks too
run “savings departments” to mobilise the savings of men of small means. The idea is to

14
encourage thrift and discourage hoarding. Post Office Saving Banks in India are doing this
useful work.

6. SAVINGS BANKS
Over and above the various types of banks mentioned above, there exists in almost all
countries today a Central Bank. It is usually controlled and quite often owned by the
government of the country.

7. UTILITY OF BANKS
An efficient banking system is absolutely necessary for a country, if it is to progress
economically. The services that an efficient banking system can render a country are indeed
very valuable. Undeveloped banking system is not only an index of economic backwardness
of a country, it is also an important cause of it. The banking system can be useful in the
following ways, in addition to what has been mentioned in the functions of banks.

(i) The banks create instruments of credit which are very convenient substitutes for money.
This means a great saving Actual movement of money is avoided and expenses saved.

(ii) The banks increase the mobility of capital. They bring the borrowers and the lenders
together. They collect money from those who cannot use it, and give it to those who can.
Thus, they help the movement of funds from place to place, and from person to person, in a
very convenient and inexpensive manner.

(iii) They encourage the habit of habit by providing safe channels of investment. In the
absence of banking facilities, people would just squander their funds.

(iv) By encouraging savings, the banks bring about accumulation of large amount of capital
in the country from small individual savings. In this way, they make the resources of the
country more productive, and thus contribute to the general prosperity and welfare, of the
country.

1.7 BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits
and limitations in operating in India. Each has their own dedicated target market. Few of
them only work in rural sector while others in both rural as well as urban. Many even are
only catering in cities. Some are of Indian origin and some are foreign players.

15
 All these details and many more is discussed over here. The banks and its relation with the
customers, their mode of operation, the names of banks under different groups and other such
useful information's are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBI
has shown certain interest to involve more of foreign banks than the existing one recently.
This step has paved a way for few more foreign banks to start business in India.

1.8 BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA

1) Schedule Commercial Banks

Public Sector Banks Private Sector Foreign Banks In Regional Rural

Banks India Banks

(26) (25) (29) (95)

❖ Nationalized ❖ Old Private

Bank Banks
❖ Other Public ❖
Sector Banks
(IDBI)
❖ SBI AndIts
Associated

2) Scheduled Comparative Bank

Scheduled Urban cooperative Banks Scheduled State Cooperative Banks

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Public Sector Banks
Public sector banks are those banks which are owned by the Government. The Government
runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks
were also nationalized. Therefore in 1980 the number of nationalized bank 20. At present
there are total 26 Public Sector Banks in India (As on 26-09-2017). Of these 19 are
nationalized banks, 6 (STATE BANK OF INDORE ALSO MERGED RECENTLY) belongs
to SBI &associates group and 1 bank (IDBI Bank) is classified as other public sector bank.
Welfare is their primary objective.

Nationalized banks Other Public SBI & its Associates

Sector Banks

• Allahabad Bank
• Andhra Bank • State Bank of India
• Bank of Baroda
• Bank of India • State Bank of
• Bank of Maharashtra
• Canara Bank IDBI Hyderabad
• Central Bank of India (Industrial
• Corporation Bank
Development Bank • State Bank of Mysore
Of India)Ltd.
• Dena Bank
• State Bank of Patiala
• Indian Bank
• Indian Overseas Bank
• State Bank of
• Oriental Bank of Commerce
• Punjab & Sind Bank Travancore
• Punjab National Bank
• Syndicate Bank • State Bank of Bikaner
• UCO Bank And Jaipur
• Union Bank of India
• United Bank of India
• Vijaya Bank

Private Sector Banks

These banks are owned and run by the private sector. Various banks in the country such as
ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation to the
share of the banks held by him.

17
 Private banking in India was practiced since the beginning of banking system in India. The
first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It
is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest
development bank in the world as Private Banks in India and has promoted world class
institutions in India. The first Private Bank in India to receive in principle approval from the
Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a
bank in the private sector banks in India as part of the RBI's liberalization of the Indian
Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered
office in Mumbai and commenced operations as Scheduled Commercial Bank in January
1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930.

Private sector banks have been subdivided into following 2 categories:

Old Private Sector Banks New Private Sector Banks

• Bank of Rajasthan Ltd. • Bank of Punjab Ltd. (since merged

• Catholic Syrian Bank Ltd. with Centurian Bank)
• City Union Bank Ltd. • Centurian Bank of Punjab (since
• Dhanalakshmi Bank Ltd. merged with HDFC Bank)
• Federal Bank Ltd. • Development Credit Bank Ltd.
• ING Vysya Bank Ltd. • HDFC Bank Ltd.
• Jammu and Kashmir Bank Ltd. • ICICI Bank Ltd.
• Karnataka Bank Ltd. • Industrial Bank Ltd.
• Karur Vysya Bank Ltd. • Kotak Mahindra Bank Ltd.
• Lakshmi Vilas Bank Ltd. • Axis Bank (earlier UTI Bank)
• Nainital Bank Ltd. • Yes Bank Ltd.
• Ratnakar Bank Ltd.
• SBI Commercial and International
Bank Ltd.
• South Indian Bank Ltd.
• Tamilnad Mercantile Bank Ltd.
• United Western Bank Ltd.

Foreign Banks In India

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 ❖ ABN AMRO Bank N. V. ❖ HSBC (Hongkong & Shanghai
❖ Abu Dhabi Commercial Bank Ltd. Banking Corporation)
❖ American Express Bank ❖ JPMorgan Chase Bank
❖ Antwerp Diamond Bank ❖ Krung Thai Bank
❖ Arab Bangladesh Bank ❖ Mashreq Bank
❖ Bank International Indonesia ❖ Mizuho Corporation Bank
❖ Bank of America ❖ Oman International Bank
❖ Bank of Bahrain & Kuwait ❖ Shinhan Bank
❖ Bank of Ceylon ❖ Society general
❖ Bank of Nova Scotia ❖ Sonali Bank
❖ Bank of Tokyo Mitsubishi UFJ ❖ Standard Chartered Bank
❖ Barclays Bank ❖ State Bank of Mauritius
❖ BNP Paribas
❖ Calyon Bank
❖ China Trust Commercial Bank
❖ Citibank
❖ DBS Bank
❖ Deutsche Bank

Corporative Banks in India

The Cooperative bank is an important constituent of the Indian Financial System, judging by
the role assigned to cooperative, the expectations the cooperative is supposed to fulfil, their
number, and the number of offices the cooperative bank operate. Though the cooperative
movement originated in the West, but the importance of such banks have assumed in India is
rarely paralleled anywhere else in the world. The cooperative banks in India plays an
important role even today in rural financing. The businesses of cooperative bank in the urban
areas also has increased phenomenally in recent years due to the sharp increase in the number
of primary co- operative banks.
Cooperative Banks in India are registered under the Co-operative Societies Act. The
cooperative bank is also regulated by the RBI. They are governed by the Banking
Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

Rural Banks in India

Rural banking in India started since the establishment of banking sector in India. Rural
Banks in those days mainly focussed upon the agro sector. Regional rural banks in India

19
penetrated every comer of the country and extended a helping hand in the growth process of
the country.
SBI has 30 Regional Rural Banks in India known as RRBS. The rural banks of SBI is spread
in 13 states extending from Kashmir to Kamataka and Himachal Pradesh to North East. The
total number of SBIS Regional Rural Banks in India branches is 2349 (16%). Till date in
rural banking in India, there are 14,475 rural banks in the country of which 2126 (91%) are
located in remote rural areas.
Apart from SBI, there are other few banks which functions for the development of the rural
areas in India.
Few of them are as follows.
Haryana State Cooperative Apex Bank Limited
The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a
vital role in rural banking in the economy of Haryana State and has been providing aids and
financing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and
giving service to its depositors.
NABARD
National Bank for Agriculture and Rural Development (NABARD) is a development bank in
the sector of Regional Rural Banks in India. It provides and regulates credit and gives service
for the promotion and development of rural sectors mainly agriculture, small scale industries,
cottage and village industries, handicrafts. It alsofinancerural crafts and other allied rural
economic activities to promote integrated rural development. It helps in securing rural
prosperity and its connected matters.
Sindhanur Urban Souharda Co-operative Bank
Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first
of its kind in rural banks of India. The impressive story of its inception is interesting and
inspiring for all the youth of this country.
United Bank of India
United Bank of India (UBI) also plays an important role in regional rural banks. It has
expanded its branch network in a big way to actively participate in the developmental of the
rural and semi-urban areas in conformity with the objectives of nationalisation.
Syndicate Bank
Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision of
future India by understanding the grassroot realities. Its progress has been abreast of the
phase of progressive banking in India especially in rural banks.

1.9 INDIAN BANKING INDUSTRY

20
The Indian banking market is growing at an astonishing rate, with Assets expected to reach
US$1 trillion by 2018. An expanding economy, middleclass, and technological innovations
are all contributing to this growth.

The country's middle -class accounts for over 320 million People. In correlation with the
growth of the economy, rising income levels, increased standard of living, and affordability
of banking products are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion
of retail and rural banking. Players are becoming increasingly customer -centric in their
approach, which has resulted in innovative methods of offering new banking products and
services. Banks are now realizing the importance of being a big playerand are beginning to
focus their attention on mergers and acquisitions to take advantage of economies of scale
and/or comply with Basel II regulation "Indian banking industry assets are expected to reach
US$1 trillion by 2018 and are poised to receive a greater infusion of foreign capital," says
Prathima Rajan., analyst in Celent's banking group and author of the report. "The banking
industry should focus on having a small number of large players that can compete globally
rather than having a large number of fragmented players.

21
 CHAPTER - 2

BANK OF BARODA

22
2.1 INTRODUCTION

Bank of Baroda (BOB) (BSE: 532134) (Hindustan is the third largest bank in India, after the
State Bank of India and the Punjab National Bank and ahead of ICICI Bank.3] BOB is ranked
763 in Forbes Global 2000 list. BOB has total assets in excess of Rs. 3.58 lakh crores, or Rs.
3,583 billion, a network of over 3,409 branches and offices, and about 1,657 ATMS. It plans
to open 400 new branches in the coming year. It 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. Its total business was Rs. 5,452 billion as of June 30.

As of August 2018, the bank has 78 branches abroad and by the end of FY11 this number
should climb to 90. In 2018, BOB opened a branch in Auckland, New Zealand, and its tenth
branch in the United Kingdom. The bank also plans to open five branches in Africa. Besides
branches, BOB plans to open three outlets in the Persian Gulf region that will consist of
ATMS with a couple of people.

The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in
the princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial
banks of India, was nationalized on 19 July 1969, by the government of India.

Bank of Baroda (BOB) is an Indian state-owned International banking and financial services
company headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It is the
second largest bank in India, next to State Bank of India. Its headquarters is in Vadodara, it
has a corporate office in Mumbai. Based on 2017 data, it is ranked 1145 on Forbes Global
2000 list. BOB has total assets in excess of 3.58 trillion, a network of 5538 branches in India
and abroad, and 10441 ATMS as of July, 2017.
The bank was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on 20
July 1908 in the Princely State of Baroda, in Gujarat. The bank, along with 13 other major
commercial banks of India, was nationalised on 19 July 1969, by the Government of India
and has been designated as a profit-making public-sector undertaking (PSU).
India first life insurance company is a joint venture between Bank of Baroda (44%) and
fellow Indian public sector bank Andhra bank (30%), and UK's financial and investment
company legal and general (26%). It was incorporated in November, 2017 and has its
headquarters in Mumbai. The company started strongly, achieving a turnover in excess of Rs.
2 million in its first four and half months.
In 2015, Bank of Baroda officials recently stumbled upon illegal transfers of a whopping
76,172 crore (USS960 million) in foreign exchange, made to Hong Kong through newly
opened accounts in the bank's Ashok Vihar branch.
Bank of Baroda is an Indian Multinational public sector Banking and financial services
company. It is the second largest public sector bank in India post-merger with a business mix
of close to US$225 billion.

23
2.2 HISTORY

Maharaja Sayajirao Gaekwad III, the founder of Bank of Baroda

In 1908, Maharaja Sayajirao Gaekwad III, set up the Bank of Baroda (BOB), with other
stalwarts of industry such as Sampatrao Gaekwad, Ralph White nack, Vithaldas Thakersey,
Tulsidas Kilachand and NM Chokshi. 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.
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.

24
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.
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.

25
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.
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 and General (UK) called India First Life Insurance Company.
In 2009 Bank of Baroda (New Zealand) was registered. As of 2017 BOB (NZ) has 3
branches: two in Auckland, one in Wellington.
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
26
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.
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. 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, 13,400 ATMs, 85,000 employees and serves 120
million customers.
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.

As many as 10 banks have been merged with Bank of Baroda during its journey so far.

• Hind Bank Ltd (1985)

• New Citizen Bank of India Ltd (1961)
• Surat Banking Corporation (1963)
• Tamil Nadu Central Bank (1964)
• Umbergaon People Bank (1964)
• Trades Bank Limited (1988)
• Bareilly Corporation Bank Ltd (1988)
• Benares State Bank Ltd (2002)
• South Gujrat Local Area Bank Ltd (2004)
• Memon Cooperative Bank Limited (2019)

Type -Public
Industry -Banking Financial Services
Founded -20 July 1908, 108 year ago
Founder -Maharaja H. H. Sir Sayajirao
Gaekwad 111
Head Quarter -Vadodara, India
Number of location 9898 Branches (2019)
Area served -India &worldwide

27
 Number of employees 86,170
Capital ratio 12.13%
Website www.bankofbaroda.com

Mission
“To be a top-ranking National Bank of International Standards committed to
augmenting stake holder’s value through concern, care and competence”.

Vision
It has been a long and eventful journey of almost a century across 25 countries. Starting in
1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate
governance.
It is a story scripted in corporate wisdom and social pride. It is a story crafted in
private capital, princely patronage and state ownership. It is a story of ordinary bankers and
their extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of
corporate glory. It is a story that needs to be shared with all those millions of people-
customers, stakeholders, employees & the public at large who in ample measure, have
contributed to the making of an institution.

Founder
Bank of Baroda made a humble beginning on 20th July 1908 as “Bank of Baroda Limited”
founded by the ruler of erstwhile Baroda state, his excellency Maharaja Sayajirao Gaekwad.

Logo

28
The logo is unique representation of a universal symbol. It comprises dual ‘B’ letter forms
that hold the rays of the rising sum. We call this the Baroda Sun. The sun is an excellent
representation of what our bank stands for. It is the single most powerful source of light and
energy. its far-reaching rays dispel darkness to illuminate everything its touched. At Bank of
Baroda, we seek to be the sources that will help all our stakeholders realize their goals. To
our customers, we seek to be a one-stop, reliable partner who will help them address different
financial needs. To our employees, we offer rewarding careers and to our investors and
business partners, maximum return on their investment.
Baroda Academy – inventing Methods for Igniting Minds 5 the single-
colour, compelling vermilion palette has been carefully chosen, for its distinctiveness as it
stands for hope and energy. We also recognize that our bank is characterized by diversity.
Our network of branches spans geographical and culture boundaries and rural-urban divides.
Our customers come from a wide spectrum of industries and backgrounds. The Baroda Sun is
a fitting face for our brand because it is a universal symbol of dynamism and optimism – it is
meaningful for our many audiences and easily decoded by all. Our new corporate brand
identify is much more than a cosmetic change. It is a signal that we recognize and are
prepared for new business paradigms in a globalised world. At the same time, we will always
stay in touch with our heritage and enduring relationship on which our bank is founded. By
adopting a symbol as simple and powerful as the Baroda Sun, we hope to communicate both.

Bank of Baroda (Debit Card)

29
• Bank of Baroda offers PIN and EMV Chip based customer friendly debit cards designed to
give you maximum benefits with every spend.
• Get quick access to cash via 6900+ Bank of Baroda ATMs and over 1 lakh member bank
ATMs.
• Enjoy shopping to the hilt with high withdrawal and spending limits at merchant locations
and online.
• Bank of Baroda Debit Cards are available in Visa, MasterCard and Ru-Pay variants

Types of Debit card from Bank of Baroda

Visa Electron Debit Card
• A flexible debit card designed for convenience while shopping, travelling and dining.
• Features a daily spending limit of Rs.50,000 and cash withdrawal limit of Rs.25,000.
• This is a PIN based card which works with security verification to secure all your
transactions.

Visa EMV Chip Debit Card

• An international debit card which can be used for ATM withdrawals, online transactions
and making payments worldwide.
• Premium category debit card with higher daily withdrawal limit of Rs.1,00,000 and
purchase limit of Rs.2,00,000 per day at Pos.
• This is an EMV Chip based card which requires a PIN number for the transaction to be
completed.

Baroda MasterCard Gold Debit Card

• Designed for the Premium category customers of Bank of Baroda and can be used at all
MasterCard enabled ATMs and merchant outlets.
• Features a high daily cash withdrawal limit of Rs.50,000 and spending limit of
Rs.1,00,000.
• This is a PIN based card which requires a PIN number for the transaction to be authorized.

Ru-Pay EMV Chip Debit Card

30
• This is an international debit card which can be used at all Ru-pay enabled ATMs and
merchant outlets
• The Ru-Pay EMV Chip Debit Card features a high daily purchase limit of Rs.2,00,000 and
ATM withdrawal limit up to Rs.1,00,000.
• Like other chip-based cards, this debit card also requires a PIN number to authenticate and
secure transactions.

Ru-Pay Debit Card

• This is a domestic use debit card introduced in association with NPCI and can be used only
within India at Ru-Pay enabled POS and ATMs.
• Features high daily limits on transactions (Rs.50,000) and ATM withdrawals (Rs.25,000).

Non-personalized Debit Card

• This is a non-personalized debit card which will be given to customers at the time of
opening an account.
• Being a Ru-Pay debit card, it can be used only within India at all Ru-Pay enabled merchant
outlets and ATMs.
• Carries per day transaction limit of Rs.50,000 and cash withdrawal Rs.25,000.

Subsidiaries
BOB Capital Markets (BOBCAPS) is a SEBI-registered investment banking company based
in Mumbai, Maharashtra. It is a wholly owned subsidiary of Bank of Baroda. 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.
BOB cards Ltd is a credit card company, 100% subsidiary of Bank of Baroda. The company
is in the business of Credit cards, Acquiring Business & back end support for Debit cards
operations to Bank of Baroda. Bank of Baroda had introduced its first charged card named
BOBCARD in the year 1984. The whole operation of this plastic card was managed by Credit
card division of Bank of Baroda. It established a wholly owned subsidiary, BOB cards
Limited in the year 1994 to cater to the need of rapidly growing credit card industry in a
focused manner. BOBCARDS Ltd is the first non-banking company in India issuing credit
cards.
The Nainital Bank Ltd. was established in the year 1922 with the objective to cater banking
needs of the people of the region. In the year 1973, Reserve Bank of India directed Bank of
Baroda, to manage the affairs of the Nainital Bank Limited.

International presence

31
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.
Among the Bank of Baroda's overseas branches are ones in the world's major financial
centres (e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well as a
number in other countries. The bank is engaged in retail banking via the branches of
subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans has
recently upgraded its representative office in Australia to a branch and set up a joint venture
commercial bank in Malaysia. It has a large presence in Mauritius with about nine branches
spread out in the country.
The Bank of Baroda has received permission or in-principle approval from host country
regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish
joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open
offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain,
South Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New
Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing
operations in the United Kingdom, the United Arab Emirates, and Botswana.
The tagline of Bank of Baroda is "India's International Bank".

Affiliates
India First Life Insurance Company is a joint venture between Bank of Baroda (44%) and
fellow Indian state-owned bank Andhra Bank (30%), and UK's financial and investment
company Legal & General (26%). It was incorporated in November, 2017 and has its
headquarters in Mumbai. The company started strongly, achieving a turnover in excess of ₹
2 billion in its first four and half months.
Bank of Baroda and HDFC Bank are partner banks in Chillr Mobile app. Non-partner bank
customers can only receive funds. Only the mobile number of the beneficiary in the remitter's
phonebook is needed. Application enables customers to send money to any registered Chillr
user on phone contact list.

Honours

• Best Public Sector Bank Award under the category of Global Business at the Dun &
Bradstreet Banking Awards 2015.

32
• The Government of India awarded Bank with the 1st Prize in the Indira Gandhi Raj
bhasha Shield
Competition in Region 'B'. on Hindi Divas 2014. Further, Bank was awarded first prize for 'B'
Region and second prizes for Region 'A' and 'B' by Reserve Bank of India (RBI) under the
RBI Raj bhasha Shield Competition.

• BML Munjal award in Public Sector Category for Business Excellence Through Learning
& Development –2015.
• Excellence in Banking (PSU Sector) at the 5th My FM Stars of the Industry Awards
recently held in Mumbai on 30.01.2015
• National Prize – First Rank in Innovative Training Practices for the year 2014 from
―Indian Society for Training and Development‖ (ISTD).
• Golden Peacock National Training Award for the year 2014 under the aegis of Institute of
Directors, New Delhi.
• Champion of Champions Award at the 54th annual ABCI Awards 2015, for 6 Categories-
Indian
Language Publication – Bronze; Exhibition Collateral – Gold; Wall Calendar 2014 – Silver;
Environmental Communication – Silver; E-Zine – Bronze; Corporate Film – Gold.

• 3 Awards at the IBA Banking Technology Awards 2014 – 15, Winner in Best Financial
Inclusion
Initiative; First Runner up in Training & Human Resources, E – learning Initiatives; First
Runner up in ―Best Use of Data.

• Best Bank – Global Business Development (Public Sector) & Best Bank – Overall
(Public Sector) Award in Dun & Bradstreet – Polaris Financial Technology Banking
Awards 2014.
• Scoch Order of Merit in India's Best 2014 Financial Inclusion & Deepening Awards
2014.
• ASSOCHAM Social Banking Excellence Award under Public Sector Banks category, in
recognition of the significant initiatives being undertaken by the bank in social banking
sphere.
• The Most Efficient Public Sector Bank for the year 2014 by Dalal Street Investment
Journal in the Best PSU's of India Awards.

Products and Services of Bank of Baroda

I. Personal:
a) Accounts: Savings Account
Current Account
b) Deposits: Fixed Deposit
Recurring Deposit
c) Loans: Home loan
Vehicle loan
Education loan
Personal loan
Other loan (Mortgage loan, Mudra loan, Commission agents loan, Traders
loan, loan from IPO, Advance against gold ornaments)

33
 d) Cards: Debit cards
Prepaid cards
Credt cards
e) Wealth: Life insurance
General insurance
Health insurance
Mutual funds
Baroda m-invest App
Baroda e-trade
f) Digital: Baroda M-connect plus (Mobile banking)
Baroda connect (Internet Banking)
Baroda m-CLIP (Mobile wallet)
Baroda Gift Card
Baroda m-passbook

II. Business:
a) MSME banking
b) Corporate (wholesale) banking
c) International banking
d) Treasury

III. NRI:
a) Deposit products, Loan facilities to NRI, Facilities to returning Indians,
Instrument opportunities, Value added services
b) Money transfer to India

IV. Rural and Agriculture

a) Priority sector loan and advances:
Traders loan
Marriage loan
Rural housing finance scheme
Advance against property
Consumer durables loan
b) Other services:
Pension
Agriculture Debit waiver
Baroda Grameen Paramarsh Kendra
Agriculture finance scheme
Baroda Swarojgar Vikas Sanstha

Bank of Baroda branches in India

Bank of Baroda in 35 States

• Andaman Nicobar
• Andhra Pradesh
• Arunachal Pradesh
• Assam

34
• Bihar
• Chandigarh
• Chhattisgarh
• Dadra Nagar Haveli
• Daman Diu
• Delhi
• Goa
• Gujarat
• Haryana
• Himachal Pradesh
• Jammu Kashmir
• Jharkhand
• Karnataka
• Kerala
• Madhya Pradesh
• Maharashtra
• Manipur
• Meghalaya
• Mizoram
• Nagaland
• Orissa
• Pondicherry
• Punjab
• Rajasthan
• Sikkim
• Tamil Nadu
• Telangana
• Tripura
• Uttar Pradesh
• Uttarakhand
• West Bengal

ABOUT BANK OF BARODA

A saga of vision and enterprise

It has been a long and eventful journey of more than a century across 25 countries. Starting
in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate
Centre in Mumbai is a saga of vision, enterprise, financial prudence and corporate
governance.

It is a story scripted in corporate wisdom and social pride. It is a story crafted in private
capital, princely patronage and state ownership. It is a story of ordinary bankers and their
extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of
corporate glory. It is a story that needs to be shared with all those millions of people -
customers, stakeholders, employees & the public at large - who in ample measure, have
contributed to the making of an institution.

35
Mission statement

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

holders' value through concern, care and competence.

Bank of Baroda's Initiatives toward Financial Inclusion

Bank of Baroda has adopted the 'whole village approach' as part of its mandate for enabling
for financial inclusion by extending banking services to the country's rural population. To
give rural India access to finance and to enable economic independence, Bank of Baroda has
introduced a slew of services that extend credit facilities to small and marginal farmers,
agricultural laborers and cottage industry entrepreneurs. Villages in Dungarpur district of
Rajasthan were among the first 500 villages to benefit from the Bank's financial inclusion and
total integrated village development program.

In the past too, the Bank has taken a number of initiatives such as opening of specialised
outlets of Gram Vikas Kendras (GVKS) and Multi Service Agencies (MSAS). The Baroda
Swarojgar Vikas Sansthan (BSVS) was another initiative for capacity building and provided
appropriate training for skill up-gradation to unemployed youth and women for employment.

36
 CHAPTER - 3
RESEARCH METHODOLOGY

37
 RESEARCH TOPIC

A RESEARCH STUDY OF BANK OF BARODA

2.1 INTRODUCTION
Financial Management is the specific area of finance dealing with the financial decision
corporations make, and the tools and analysis used to make the decisions. The discipline as a
whole may be divided between long-term and short-term decisions and techniques. Both
share the same goal of enhancing firm value by ensuring that return on capital exceeds cost of
capital, without taking excessive financial risks.
Capital investment decisions comprise the long-term choices about which projects receive
investment, whether to finance that investment with equity or debt, and when or whether to
pay dividends to shareholders.
Short-term corporate finance decisions are called working capital management and deal with
balance of current assets and current liabilities by managing cash, inventories, and short-term
borrowings and lending (e.g., the credit terms extended to customers).Corporate finance is
closely related to managerial finance, which is slightly broader in scope, describing the
financial techniques available to all forms of business enterprise, corporate or not.

2.2 OBJECTIVE OF THE STUDY:

1. To know the strength and weakness of Bank of Baroda through Ratio analysis.
2. To evaluate the performance of the companies.
3. To understand the liquidity, profitability and efficiency positions of the companies.
4. To make comparison between the ratios during different periods.
5. To identify the needs and expectations of the Bank’s customers and measure the
extent to which they are met.
6. To assess the current satisfaction level among the customers with regards to the Bank
competition.
7. To establish a baseline for future maintaining.
8. To do a quantitative study on the result obtained.

2.3 RESEARCH METHODOLOGY

The conclusive research is being used to study the comparison of the companies.
➢ Data collection:
Secondary data is being taken
Websites
Outcomes of the study:
1. With this analysis we come to know about the strength and weakness of Bank of
Baroda through Ratio analysis.

38
 2. To evaluate the performance of the companies.
3. To understand the liquidity, profitability and efficiency positions of the companies.
4. To make comparison between the ratios during different periods.

2.4 Limitation of the study:

The study is done in Mumbai.

The study is constrained to the all information about Bank of Baroda.

2.5 Selection of study destination

There was many branches for study on my project, but I choose Mumbai branch name is
Bhaudaji Road, Matunga. I just check this bank is better or not by the peoples opinions.

2.6 Sample size

A total of 50 respondents were surveyed as part of study. This figures has been arrived at to
have a reasonably good sample size and also in acknowledgement of the fact that the study.
Hence, distribution of sample size to the peoples opinion who says bank of Baroda is better
or not, but in case (table 1.1) only 10 respondents was out of 50 respondents was say bank of
Baroda is not better.
To pick up sample respondents from each study destination, discussions with the employees
at study location also helped in finalizing the segment-wise sample size. I just put in table 1.1
a people who says not better Bank of Baroda.

Table - 1.1 sample size for the study

no. Names Better Not

1 Mr. Pratik Nehate Not
2 Mrs. Shraddha Kamble Not
3 Mrs. Renuka Sharma Not
4 Mrs. Panchshila More Not
5 Mr. Pravin Chandanshive Not
6 Mr. Ankit Ghadilkar Not
7 Mrs. Sarika Chaulkar Not
8 Mrs. Gunjan shete Not
9 Mr. Sandesh Shinde Not
10 Mr. Ramesh Awhad Not

Hypothesis
Null Hypothesis: The financial statements of Bank of Baroda is not properly maintained.

39
Alternative Hypothesis: The financial statements of Bank of Baroda is properly
maintained.

Null Hypothesis: Customers are not satisfied with services provided by Bank of Baroda.

Alternative Hypothesis: Customers are satisfied with services provided by Bank of

Baroda.

TOOLS USED:
Ratio analysis
Trend analysis
Beta valuation
Sustainable earnings
Basel-II CRAR % capital requirement
Cash Flow Statement Analysis

40
 CHAPTER - 4

LITRATURE REVIEW

41
 A brief review of the relevant literature on bank of Baroda.

Mr. Mohammad Arish

Mr. Mohammad Arish identify the risks and risk management

practices associated with e-banking activities. Provide standardized guidance to
examiners on e-banking reviews.

The paper aims to examine the scenario of ATM in banks. In this broader framework,
an attempt is made to achieve the following specific objectives:

➢ To analyze the present ATM facilities

➢ To examine the factors affecting the choice of ATM.
➢ To examine the impact of ATM on customer satisfaction by appraising the
problems faced by the customers.

Mrs. Rashmi Sharma

➢ As per Mrs. Rashmi Sharma review third largest Public Sector bank in India, after
State Bank of India and Punjab National Bank.
➢ This bank Is founded in1908.
➢ That banks headquartered at the Baroda.
➢ Bank of Baroda has total of 3159 branches including 70 overseas as per her review.

Mr. Ashish Shinde

Bank of Baroda was recognized by Dun & Bradstreet as the

Best Public Sector Bank under the category ‘global business development’ at
Polaris financial technology banking awards 2013, bank won a special award for
best IT team among public sector bank at IDRBT banking technology excellence
awards 2012-13.

Mr. Mayank Dhingra

42
 To be a top-ranking national bank of international standards committed to
augmenting stake holder’s value through concern, care and competence.

Andrew Grant

• Bank of Baroda offers a simple and memorable expression of all that the Bank stands.
• It is a phrase you can actually imagine people saying in real life.
• It is relevant to everything from the integrity of our staff to the strength of our
products.
• It stresses reliability, security and safety.
• It can work in different media and sales situations.

Mrs. Bhavya J. Shah

To conclude banking sector is the backbone of any economy.

Services offered by them go a long way in upliftment of the society. In this world of
high competition where banking too faces very high competition, if has to survive has
to serve its customer to the best of their ability.

43
 CHAPTER - 5

DATA ANALYSIS, INTERPRETATION AND

PRESENTATION

44
BALANCE SHEET OF BANK OF BARODA

2015 2016 2017 2018 2019

Cash 235,569 228,108 239,151 240,350 282,253
Money at call 1,280,742 1,141,833 1,301,999 733,878 696,595
Loans and
advances 4,354,155 3,941,860 3,922,623 4,379,413 4,842,148
Investments 1,302,464 1,288,941 1,407,164 1,751,372 1,957,162
Fixed assets 29,784 63,592 59,297 55,323 71,437
Other assets 137,058 274,408 261,971 317,714 347,123
Total assets 7,339,774 6,911,791 7,192,205 7,478,049 8,196,719

Borrowing 355,015 338,452 312,420 648,598 688,675

Deposits 6,299,813 5,866,905 6,172,569 6,074,514 6,655,887
Provisions 0 0 0 0 0
Other liabilities 262,902 279,465 274,215 286,550 298,782
Total liabilities 6,917,730 6,484,822 6,759,204 7,009,662 7,643,345

Share capital 4,436 4,621 4,621 5,304 5,304

Retained earnings 415,741 420,411 426,055 460,359 494,238
Other equity 0 0 0 0 50,420
Minority interest 1,867 1,937 2,325 2,725 3,414
Total Equity 422,044 426,969 433,001 468,388 553,375
Total Liabilities
& Equity 7,339,774 6,911,791 7,192,205 7,478,049 8,196,719

Contingent
Liabilities 2,473,324 2,298,070 2,533,946 2,990,234 3,815,435
Bills for collection 377,211 324,421 376,808 458,594 492,129
Cash per share 109.7 101.0 103.8 104.1 106.7

PROFIT AND LOSS OF BANK OF BARODA

2015 2016 2017 2018 2019

45
Interest Earned 449,150 547,990 444,735 460,564 529,062

Other Income 54,493 59,922 79,368 79,922 78,871

Total Income 503,642 517,912 524,102 540,486 607,933

Interest Expended 305,466 321,074 295,957 291,605 325,057

Operating
Expenses
86,044 99,624 103,498 113,266 127,690

Provisions and

contingency 73,805 147,744 106,873 154,736 144,315

Other expenses 0 0 0 0 0

Total Expenses 465,315 568,443 506,328 559,607 597,062

Net profit 38,327 -50,531 17,774 -19,121 10,871

Non-Controlling 790 -146 376 250 130

Net Income 39,117 -50,677 18,150 -18,871 11,001

NI – Preferred 39,117 -50,677 18,150 -18,871 11,001

Dividend

Basic shares 2,147 2,258 2,304 2,309 2,646

Diluted shares 2,147 2,258 2,304 2,309 3,074

EPS basic 18.22 -22.44 7.88 -8.17 4.16

EPS Diluted 18.22 -22.44 7.88 -8.17 3.58

CASH FLOW IN BANK OF BARODA

2015 2016 2017 2018 2019

46
Net Income 60,623 -62,473 30,619 -20,807 15,376

NPA Provision 40,045 135,925 86,034 139,748 123,223

Cash flow 178,383 -100,113 178,648 -596,917 -14,491

Operating acts

Investment in -6,289 -40,494 -8285 -6,131 -26,660

PPE

Cash flow -5,563 -40,051 -5,506 -4,136 -25,374

Investing acts

Cash flow -64 -6,157 -1,983 34,131 44,485

Financing acts

Cash at 1,343,557 1,516,312 1,3696,991 1,541,150 974,227

beginning
period

Cash at end of 1,516,312 1,369,991 1,541,150 947,227 978,848

period

Free Cash Flow 172,094 -140,607 170,364 -603,048 -41,151

CAPITAL STRUCTURE
From To Year Class of Authorized Issued Paid Up Paid Up Paid Up
Year Share Capital Capital Shares Face Capital
(Nos) Value
2018 2019 Equity 3,000.00 531.84 2645516132 2 529.10
Share

2017 2018 Equity 3,000.00 529.10 2645516132 2 529.10

Share

2016 2017 Equity 3,000.00 463.57 2304159598 2 460.83

Share

2015 2016 Equity 3,000.00 462.09 2310465500 2 462.09

Share

2014 2015 Equity 3,000.00 445.03 2211495906 2 442.30

Share

47
2013 2014 Equity 3,000.00 432.15 429415087 10 429.42
Share

2012 2013 Equity 3,000.00 423.99 421256303 10 421.26

Share

2019 2012 Equity 3,000.00 413.86 411123383 10 411.12

Share

2018 2019 Equity 3,000.00 394.28 391546079 10 391.55

Share

2017 2018 Equity 3,000.00 367.00 364266500 10 364.27

Share

2016 2017 Equity 1,500.00 367.00 364266500 10 364.27

Share

2015 2016 Equity 1,500.00 367.00 364266400 10 364.27

Share

2006 2015 Equity 1,500.00 367.00 364266000 10 364.27

Share

2005 2006 Equity 1,500.00 367.00 364265500 10 364.27

Share

2004 2005 Equity 1,500.00 296.00 293265400 10 293.27

Share

2003 2004 Equity 1,500.00 296.00 293261700 10 293.26

Share

2002 2003 Equity 1,500.00 296.00 296000000 10 296.00

Share

2001 2002 Equity 1,500.00 296.00 296000000 10 296.00

Share

2000 2001 Equity 1,500.00 296.00 296000000 10 296.00

Share

1999 2000 Equity 1,500.00 296.00 296000000 10 296.00

Share

48
1998 1999 Equity 1,500.00 296.00 296000000 10 296.00
Share

1997 1998 Equity 1,500.00 296.00 296000000 10 296.00

Share

1996 1997 Equity 1,500.00 388.46 203537400 10 203.54

Share

1996 1997 Equity 1,500.00 388.46 92462600 6 55.48

Share

1995 1996 Equity 1,500.00 740.94 740935900 10 740.94

Share

Dividend
year month Dividend %
2017 May 60
2015 May 160
2014 May 105
2014 Jan 110
2013 May 215
2012 May 170
2019 Apr 165
2018 Apr 150
2017 Apr 90
2016 May 80
2015 Apr 30
2015 March 30
2006 Apr 50
2005 May 32
2005 Jan 18
2004 May 35
2003 Nov 30
2003 May 40
2003 Feb 20
2002 Jun 40
2001 Jun 40
2000 Jun 15
2000 May 25
1999 May 30
1998 May 30
1997 may 26

49
TREND ANALYSIS

Trend Analysis is the practice of collecting information and attempting to spot a pattern, or
trend, in the information. In some fields of study, the term "trend analysis" has more
formally-defined meaning.

Although trend analysis is often used to predict future events, it could be used to estimate
uncertain events in the past, such as how many ancient kings probably ruled between two
dates, based on data such as the average years which other known kings reigned.

TREND ANALYSIS OF BANK OF BARODA

Bank of Baroda
Base year 2015-2019
In percentage(%) figures

2015 2016 2017 2018 2019

deposits 100 122 154 193 245

advances 100 128 172 209 273
net 100 140 217 298 413
profit

450

400

350

300
deposits
250
advances
200
net profit
150

100

50

INTERPRETATION:
Deposits:
The trend shows that the deposits are increasing from 2015-2019

50
Advances:
The trend of advances shows that it is increasing in those four years 2016-2019
Net profit:
The trend of net profit shows the increase from 2016-2019
BETA ANALYSIS

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to

the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that
calculates the expected return of an asset based on its beta and expected market returns.
Also known as "beta coefficient".

Beta valuation of Bank of Baroda

Beta Values of Bank of Baroda

Period Long Daily - Daily - Weekly - Weekly - Weekly - Monthly -
Term One Three One Year Two Year Two Year Two Year
Beta * Month Month Range Range Range Range
Range Range

Beta 1.62 0.789 1.37 1.86 1.70 2.20 1.99

Mean 140.89 85.66 94.07 111.85 126.88 126.99 123.20

Standard 11.20 % 2.03 % 2.10 % 5.42 % 5.61 % 8.41 % 11.13 %

Deviation

Share Price Range of Bank of Baroda

Share Price Range of Bank of Baroda

Date High Low Close Price Range Price Range %

28-Feb-20 77.60 73.30 76.30 4.30 5.64

27-Feb-20 80.35 77.20 78.30 3.15 4.02

26-Feb-20 81.05 79.05 80.20 2.00 2.49

51
25-Feb-20 81.20 79.40 80.05 1.80 2.25

24-Feb-20 82.10 79.70 79.90 2.40 3.00

20-Feb-20 83.25 80.30 82.25 2.95 3.59

19-Feb-20 82.60 80.20 81.10 2.40 2.96

18-Feb-20 82.40 78.20 81.00 4.20 5.19

17-Feb-20 86.35 82.00 82.30 4.35 5.29

14-Feb-20 88.95 86.10 86.45 2.85 3.30

13-Feb-20 89.10 87.75 88.05 1.35 1.53

12-Feb-20 91.20 87.55 88.25 3.65 4.14

Average Price Range

Average Price Range (Various Periods)

Period Average Price range Price Range %

3 Day Period 3.72 4.97

5 Day Period 2.81 3.69

10 Day Period 3.06 3.90

15 Day Period 2.84 3.49

30 Day Period 2.57 3.02

52
50 Day Period 2.54 2.83

5 Week Period 6.65 8.14

10 Week Period 5.79 6.66

20 Week Period 7.04 7.72

50 Week Period 8.88 8.76

3 Months Period 14.45 17.38

6 Months Period 14.36 16.49

9 Months Period 16.78 18.50

12 Months Period 19.85 20.46

Monthly Share Price Range of Bank of Baroda

Monthly Share Price Range of Bank of Baroda

Start Date End Date High Low Close Price Range Price Range %

01-Feb-20 29-Feb-20 93.25 73.30 76.30 19.95 26.15

01-Jan-20 31-Jan-20 104.85 92.00 92.70 12.85 13.86

01-Dec-19 31-Dec-19 106.15 94.20 101.90 11.95 11.73

01-Nov-19 30-Nov-19 108.25 90.65 104.90 17.60 16.78

01-Oct-19 31-Oct-19 99.00 85.65 97.20 13.35 13.73

53
01-Sep-19 30-Sep-19 103.15 90.30 93.05 12.85 13.81

01-Aug-19 31-Aug-19 107.15 89.10 92.60 18.05 19.49

01-Jul-19 31-Jul-19 132.85 101.35 106.70 31.50 29.52

01-Jun-19 30-Jun-19 135.10 114.30 121.60 20.80 17.11

01-May-19 31-May-19 144.00 104.25 133.25 39.75 29.83

01-Apr-19 30-Apr-19 137.30 113.75 116.65 23.55 20.19

01-Mar-19 31-Mar-19 133.10 101.60 128.65 31.50 24.49

Weekly Share Price Range of Bank of Baroda

Weekly Share Price Range of Bank of Baroda

Start Date End Date High Low Close Price Range Price Range %

24-Feb-20 28-Feb-20 82.10 73.30 76.30 8.80 11.53

17-Feb-20 21-Feb-20 86.35 78.20 82.25 8.15 9.91

10-Feb-20 14-Feb-20 92.30 86.10 86.45 6.20 7.17

03-Feb-20 07-Feb-20 92.75 85.40 92.05 7.35 7.98

27-Jan-20 31-Jan-20 94.20 88.10 89.30 6.10 6.83

20-Jan-20 24-Jan-20 97.85 93.50 95.60 4.35 4.55

13-Jan-20 17-Jan-20 99.00 95.10 97.35 3.90 4.01

54
06-Jan-20 10-Jan-20 99.95 93.50 97.05 6.45 6.65

30-Dec-19 03-Jan-20 104.85 100.10 100.85 4.75 4.71

23-Dec-19 27-Dec-19 104.60 98.55 104.25 6.05 5.80

16-Dec-19 20-Dec-19 103.50 97.65 100.70 5.85 5.81

09-Dec-19 13-Dec-19 102.15 94.20 101.75 7.95 7.81

RATIO ANALYSIS
A tool used by individuals to conduct a quantitative analysis of information in a company's
financial statements. Ratios are calculated from current year numbers and are then compared
to previous years, other companies, the industry, or even the economy to judge the
performance of the company. Ratio analysis is predominately used by proponents of
fundamental analysis.

There are many ratios that can be calculated from the financial statements pertaining to a
company's performance, activity, financing and liquidity. Some common ratios include the
price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital.

SUSTAINABLE EARNINGS OF BANK OF BARODA

IN RS. CR.

2011/03 2010/03 2009/03 2008/03 2007/03

INCOME:

Total 24695.1 19504.7 17876.11 13892.18 10438.12

II. Expenditure

Total 20453.42 16446.37 15648.91 12456.66 9411.66

Fringe Benefit tax 0 0 0 11 7.5

Deferred Tax 0 0 0 -3.12 -3.11
Reported Net Profit 4241.68 3058.33 2227.2 1435.52 1026.46
Extraordinary Items -0.12 56.12 62.29 0.22 8.01
Adjusted Net Profit 4241.8 3002.21 2164.91 1435.3 1018.45

55
Average of Adjusted net profit for the year 2009,2010,2011

2009 2164.91
2010 3002.21
2011 4241.8

Sum = 9408.92

Average = 3136.30

Standard deviation 1044.466

Rounding off 1044

CRAR% OF BANK OF BARODA:

201103 201003 200903

CRAR(%)
Year End 201103 201003 200903
CRAR - Tier I (%) 9.99 9.2 8.49
CRAR - Tier II (%) 4.53 5.16 5.56
Total CRAR (%) 14.52 14.36 14.05

Total
CRAR
(%)
2009 14.05
year 2010 14.36
2011 14.52

56
 14.6
14.52
14.5
14.4 14.36

14.3
14.2

14.1 14.05 Total CRAR (%)

14
13.9

13.8
2009 2010 2011
year

Quick Ratio
Quick
Ratio

Mar 15 20.78

Mar 16 18.27

year Mar 17 19.38

Mar 18 21.18

57
 Quick Ratio
21.5

21

20.5

20

19.5

19

18.5

18

17.5

17

16.5
Jan-15 Jan-16 Jan-17 Jan-18

Current Ratio
Current
ratio

Mar 15 0.59

Mar 16 1.14

year Mar 17 1.16

Mar 18 1.37

58
 Current Ratio
1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
Jan-15 Jan-16 Jan-17 Jan-18

Total debt/Equity
Total
Debt

Mar 15 16.39

Mar16 15.11

year Mar 17 15.69

Mar 18 15.07

Mar 19 15.37

59
 Total Debt
16.5

16

15.5

15

14.5

14
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
ratios

Earning Retention Ratio

Earning
retention
ratio

March 15 78.58

March 16 100.00

year March 17 75.94

March 18 100.00

March 19 100.00

60
 Earning Retention Ratio
120

100

80

60

40

20

0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

ratio

Total Assets Ratio

Total assets
ratio

Mar 15 0.90

Mar 16 0.82

year Mar 17 0.84

Mar 18 0.84

Mar 19 0.84

61
 Total Asset Ratio
0.92

0.9

0.88

0.86

0.84

0.82

0.8

0.78
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

years

Fixed Asset Turnover Ratio

Asset
turnover
ratio

March 15 0.06

March 16 0.06

year March 17 0.06

March 18 0.06

March 19 0.06

62
 Fixed Asset Turnover Ratio
0.07

0.06

0.05

0.04

0.03

0.02

0.01

0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Ratio

Dividend Per Share

Dividend
per share

Mar 15 3.20

March 16 -

years March 17 1.20

March 18 -

Mar 19 -

63
 Dividend per share
3.5

2.5

1.5

0.5

0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

per share

Return on long term funds

Returns

March 15 88.35

March 16 61.25

years March 17 77.31

March 18 58.38

March 19 69.62

64
 Return on long term fund
100
90
80
70
60
50
40
30
20
10
0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Returns

Dividend Payout Ratio(Net Profit)

Ratios

Mach 15 21.42

March 16 -

years March 17 24.06

March 18 -

March 19 -

65
 Dividend payout ratio (net profit)
30

25

20

15

10

0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

ratios

Dividend Payout Ratio (Cash Ratio)

Ratio

March 15 19.47

years March 16 -

March 17 17.56

March 18 -

March 19 -

66
 Dividend payout ratio (cash ratio)
25

20

15

10

0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

ratios

Selling cost
Cost
March 15 -
years March 16 0.17
March 17 0.23
March 18 0.26
March 19 0.20

67
 Selling cost
0.3

0.25

0.2

0.15

0.1

0.05

0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

cost

FINANCIAL ANALYSIS
Introduction to the topic
RATIO ANALYSIS
FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strengths and weaknesses of the
firm and establishing relationship between the items of the balance sheet and profit & loss
account.
Financial ratio analysis is the calculation and comparison of ratios, which are derived from
the information in a company’s financial statements. The level and historical trends of these
ratios can be used to make inferences about a company’s financial condition, its operations
and attractiveness as an investment. The information in the statements is used by
Trade creditors, to identify the firm’s ability to meet their claims i.e. liquidity position of
the company.
Investors, to know about the present and future profitability of the company and its
financial structure.
Management, in every aspect of the financial analysis. It is the responsibility of the
management to maintain sound financial condition in the company.

RATIO ANALYSIS
The term “Ratio” refers to the numerical and quantitative relationship between two items or
variables. This relationship can be exposed as
Percentages
Fractions
Proportion of numbers
Ratio analysis is defined as the systematic use of the ratio to interpret the financial
statements. So that the strengths and weaknesses of a firm, as well as its historical

68
performance and current financial condition can be determined. Ratio reflects a quantitative
relationship helps to form a quantitative judgment.
STEPS IN RATIO ANALYSIS
The first task of the financial analysis is to select the information relevant to the decision
under consideration from the statements and calculates appropriate ratios.
To compare the calculated ratios with the ratios of the same firm relating to the pas6t or
with the industry ratios. It facilitates in assessing success or failure of the firm.
Third step is to interpretation, drawing of inferences and report writing conclusions are
drawn after comparison in the shape of report or recommended courses of action.

BASIS OR STANDARDS OF COMPARISON

Ratios are relative figures reflecting the relation between variables. They enable analyst to
draw conclusions regarding financial operations. They use of ratios as a tool of financial
analysis involves the
comparison with related facts.
NATURE OF RATIO ANALYSIS
Ratio analysis is a technique of analysis and interpretation of financial statements. It is the
process of establishing and interpreting various ratios for helping in making certain decisions.
It is only a means of
understanding of financial strengths and weaknesses of a firm. There are a number of ratios
which can be calculated from the information given in the financial statements, but the
analyst has to select the appropriate data and calculate only a few appropriate ratios. The
following are the four steps
involved in the ratio analysis.
Selection of relevant data from the financial statements depending upon the objective of the
analysis.
Calculation of appropriate ratios from the above data.
Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios
developed from projected financial statements or the ratios of some other firms or the
comparison with ratios of the
industry to which the firm belongs.
INTERPRETATION OF THE RATIOS
The interpretation of ratios is an important factor. The inherent limitations of ratio analysis
should be kept in mind while interpreting them.
The impact of factors such as price level changes, change in accounting policies, window
dressing etc., should also be kept in mind when attempting to interpret ratios.

IMPORTANCE OF RATIO ANALYSIS

Aid to measure general efficiency
Aid to measure financial solvency
Aid in forecasting and planning
Facilitate decision making
Aid in corrective action
Aid in intra-firm comparison
Act as a good communication
Evaluation of efficiency
Effective tool

IN THE VIEW OF FUNCTIONAL CLASSIFICATION THE RATIOS

ARE
69
1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio

1. LIQUIDITY RATIOS

Liquidity refers to the ability of a concern to meet its current obligations as & when there
becomes due. The short-term obligations of a firm can be met only when there are sufficient
liquid assets. The short-term obligations are met by realizing amounts from current, floating
(or) circulating assets The current assets should either be calculated liquid (or) near liquidity.
They should be convertible into cash for paying obligations of short term nature. The
sufficiency (or) insufficiency of current assets should
be assessed by comparing them with short-term current liabilities. If current assets can pay
off current liabilities, then liquidity position will be satisfactory.
To measure the liquidity of a firm the following ratios can be
calculated
Current ratio
Quick (or) Acid-test (or) Liquid ratio
Absolute liquid ratio (or) Cash position ratio

(a) CURRENT RATIO:

Current ratio may be defined as the relationship between current assets and current liabilities.
This ratio also known as Working capital ratio is a measure of general liquidity and is most
widely used to
make the analysis of a short-term financial position (or) liquidity of a firm.

Current ratio= current assets/ current liabilities

Components of current ratio:
Current Assets Current Liabilities
Cash in hand Outstanding expenses
Cash at bank Bank overdraft
Bills receivable Bill payable
Inventories Short term advances
Work-in-progress Sundry creditors

70
Marketable securities Dividend payable
Short-term investments Income-tax payable
Sundry debtors
Prepaid expenses

(b) QUICK RATIO

Quick ratio is a test of liquidity than the current ratio. The term liquidity refers to the ability
of a firm to pay its short-term obligations as & when they become due. Quick ratio may be
defined as the relationship
between quick or liquid assets and current liabilities. An asset is said to be liquid if it is
converted into cash within a short period without loss of value.

Quick or liquid assets

Quick Ratio= quick or liquid assets/ current liabilities

Components
Quick Assets Current liabilities
Cash in hand Outstanding or accrued expenses
Cash at bank Bank overdraft
Bills receivable Bills payable
Sundry debtors Short term advances
Marketable securities Sundry creditors
Temporary investments Dividend payable
Income tax payable
(c) ABSOLUTE LIQUID RATIO
Although receivable, debtors and bills receivable are generally
more liquid than inventories, yet there may be doubts regarding their
realization into cash immediately or in time. Hence, absolute liquid ratio
should also be calculated together with current ratio and quick ratio so as to
exclude even receivables from the current assets and find out the absolute
liquid assets.
Absolute liquid ratio = Absolute liquid assets/Current liabilities

Absolute liquid assets include cash in hand etc. The acceptable

forms for this ratio is 50% (or) 0.5:1 (or) 1:2 i.e., Rs.1 worth absolute liquid
assets are considered to pay Rs.2 worth current liabilities in time as all the creditors are nor
accepted to demand cash at the same time and then cash
may also be realized from debtors and inventories.
Components:
Absolute liquid assets Current liabilities
Cash in hand Outstanding or accrued expenses
Cash in bank Bank overdraft
Interest on fixed deposits Bills payable
Dividend payable
Sundry creditors
Short term advances
Income tax payable

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2. LEVERAGE RATIOS
The leverage or solvency ratio refers to the ability of a concern
to meet its long-term obligations. Accordingly, long term solvency ratios
indicate firm’s ability to meet the fixed interest and costs and repayment
schedules associated with its long-term borrowings.
The following ratio serves the purpose of determining the
solvency of the concern.
· Proprietory ratio
(a) PROPRIETORY RATIO
A variant to the debt-equity ratio is the proprietary ratio which
is also known as equity ratio. This ratio establishes relationship between
share holders funds to total assets of the firm.
Proprietoryratio = Shareholders funds/ Total assets
Shareholder fund Total Assets
Share capital Fixed assets
Reserve& surplus Current assets
Cash in hand
Cash at bank
Bills receivable
Inventories
Marketable securities
Short term investment
Sundry debtors
Prepaid expenses
3. ACTIVITY RATIOS
Funds are invested in various assets in business to make sales
and earn profits. The efficiency with which assets are managed directly
effect the volume of sales. Activity ratios measure the efficiency (or)
effectiveness with which a firm manages its resources (or) assets. These
ratios are also called “Turn over ratios” because they indicate the speed with which assets are
converted or turned over into sales.
Working capital turnover ratio
Fixed assets turnover ratio
Capital turnover ratio
Current assets to fixed assets ratio
(a) WORKING CAPITAL TURNOVER RATIO
Working capital of a concern is directly related to sales.
Working capital= current assets – current liabilities
It indicates the velocity of the utilization of net working capital.
This indicates the no. of times the working capital is turned over in the
course of a year. A higher ratio indicates efficient utilization of working
capital and a lower ratio indicates inefficient utilization.

Working capital turnover ratio=cost of goods sold/workingcapital.

Components of working capital:

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Current assets Current liabilities

Cash in hand Outstanding or accrued expenses

Cash at bank Bank overdraft
Bills receivable Bills payable
Prepaid expenses Short term advances
Short term investments Sundry creditors
Inventories Dividend payable
Work in progress Income tax payable
Marketable securities
Sundry debtors
(b) FIXED ASSETS TURNOVER RATIO
It is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit
earning capacity of the firm. Higher the
ratio, greater is the intensive utilization of fixed assets. Lower ratio means
under-utilization of fixed assets.
Fixed assets turnover ratio = Cost of Sales/ Net fixed assets
Cost of Sales = Income from Services
Net Fixed Assets = Fixed Assets - Depreciation

(c) CAPITAL TURNOVER RATIOS

Sometimes the efficiency and effectiveness of the operations
are judged by comparing the cost of sales or sales with amount of capital
invested in the business and not with assets held in the business, though in
both cases the same result is expected. Capital invested in the business may be classified as
long-term and short-term capital or as fixed capital and working capital or Owned Capital and
Loaned Capital. All Capital
Turnovers are calculated to study the uses of various types of capital.

Capital turnover ratio= cost of goods sold/capital employed

Capital employed = capital+ reserves& surplus

Cost of goods sold = income from services

(d) CURRENT ASSETS TO FIXED ASSETS RATIO

This ratio differs from industry to industry. The increase in the

ratio means that trading is slack or mechanization has been used. A decline in the ratio means
that debtors and stocks are increased too much or fixed assets are more intensively used. If
current assets increase with the corresponding increase in profit, it will show that the business
is expanding.

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Current assets to fixed assets ratio= current assets/ fixed assets
Current assets Fixed assets
Cash in hand Plant
Cash at bank Machinery
Bills receivables Land
Short term investment Building
Inventories Vehicles
Sundry debtors
Work in progress
Marketable securities
4. PROFITABILITY RATIOS

The primary objectives of business undertaking are to earn profits. Because profit is the
engine, that drives the business enterprise.
Net profit ratio
Return on total assets
Reserves and surplus to capital ratio
Earnings per share
Operating profit ratio
Price –Earningratio
Return on investments
(a) NET PROFIT RATIO
Net profit ratio establishes a relationship between net profit (after tax) and sales and indicates
the efficiency of the management in manufacturing, selling administrative and other activities
of the firm.

Net profit after tax = net profit-( depreciation+ interest+ income tax)

Net sales = income from services

Net profit ratio = net profit after tax/ net sales

It also indicates the firm’s capacity to face adverse economic

conditions such as price competitors, low demand etc. Obviously higher the
ratio, the better is the profitability.
(b) RETURN ON TOTAL ASSETS
Profitability can be measured in terms of relationship between
net profit and assets. This ratio is also known as profit-to-assets ratio. It

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measures the profitability of investments. The overall profitability can be
known.

Returns on assets = net profit / total assets

Net profit = earnings before interest and tax
Total assets = current assets+ fixed assets

(c) RESERVES AND SURPLUS TO CAPITAL RATIO

It reveals the policy pursued by the company with regard to
growth shares. A very high ratio indicates a conservative dividend policy
and increased ploughing back to profit. Higher the ratio better will be the
position.

Reserves& surplus to capital ratio = reserves& surplus/capital

(d) EARNINGS PER SHARE

Earnings per share is a small verification of return of equity and
is calculated by dividing the net profits earned by the company and those
profits after taxes and preference dividend by total no. of equity shares.

Earning per share = net profit after tax/ no. of equity shares

The Earnings per share is a good measure of profitability when

compared with EPS of similar other components (or) companies, it gives a
view of the comparative earnings of a firm.
(e) OPERATING PROFIT RATIO
Operating ratio establishes the relationship between cost of goods sold and other operating
expenses on the one hand and the sales on
the other.

Operating ratio = operating cost / net sales

However, 75 to 85% may be considered to be a good ratio in case of a manufacturing under
taking.
Operating profit ratio is calculated by dividing operating profit
by sales.

Operating profit = net sales – operating cost

Operating profit ratio = operating profit / sales

(f) PRICE - EARNING RATIO

Price earning ratio is the ratio between market price per equity

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share and earnings per share. The ratio is calculated to make an estimate of appreciation in
the value of a share of a company and is widely used by
investors to decide whether (or) not to buy shares in a particular company.
Generally, higher the price-earning ratio, the better it is. If the
price earning ratio falls, the management should look into the causes that
have resulted into the fall of the ratio.

Price earning ratio = market price per share/ earning per share

Market price per share = capital + reserves& surplus / no. of equity shares

Earning per share = earnings before interest and tax / no. of equity shares

(g) RETURN ON INVESTMENTS

Return on shareholder’s investment, popularly known as Return on investments (or) return on
shareholders or proprietor’s funds is
the relationship between net profit (after interest and tax) and the
proprietor’s funds.

Return on shareholder’s investment = net profit after interest and tax / shareholder’s
fund

The ratio is generally calculated as percentages by multiplying

the above with 100.

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CHAPTER – 6
CONCLUSION

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 Findings

• 75 % of responded are females and 25 % of responded are males.

• Some people are not satisfy with the bank, but some peoples are satisfy.
• 25 % information was collect from bank and 75 % information was collect from
internet.
• This bank was better than other banks.
• Mr. Mohammad Arish has research study on that project was July, 2010.
• Mr. Ashish Shinde was project study on bank of Baroda was Jan, 2015.
• Mrs. Rashmi Sharma was study on the Jan, 2010.

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 Suggestion

• The bank should adopt a procedure of obtaining details of loans from other banks
before sanctioning credit, BOB should insist on a clearance certificate stating that no
loan is overdue to any bank of institution.
• The BOB should also reach out to the corporate client for financing their working
capital and other requirement.
• Bank must try to reduce its NPA as there is steep rise in doubtful and loss category of
NPA. Efforts should be made to organize an effective credit collection department.
• There is an increase in deposit in BOB so it must take necessary steps to increase the
percentage of profit by increasing lending to corporate and big clients.
• BOB must increase the percentage of loan amount on the fixed deposit.
• BOB should take an initiative to achieve their future goals and plans.
• Capacity building is another area where BOB has to invest significantly.
• Provision coverage ratio needs to be improved.

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 Conclusion

1. Bank of Baroda has overall better efficiency and has performed better in the banking
institution.
2. EPS And DPS of Bank of Baroda is increasing due to increase in theuse of debtrather
than the use of improved operations.
3. The P/E Ratio of Bank of Baroda is high as compared to its industry which means that
Bank of Baroda is using its funds in a better manner and it is fundamentally sound in
nature.
4. Beta of Bank of Baroda is less than the market beta which means thatbanks are giving
less returns but they are less risky and investors can invest in these shares.
5. The Average Sustainable Earnings of Bank of Baroda is high and the standard
deviation is low so the bank has its earnings is sustain and more robust in nature.
6. The Credit Deposit of Bank of Baroda is close but the ratio is high which means that
Bank of Baroda has overall good efficiency and better performance, i.e., the bank has
high-credit deposit ratio.

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 CHAPTER – 7
BIBLIOGRAPHY

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 Bibliography

• https://en.wikipedia.org/wiki/Bank_of_Baroda
• https://www.askbankifsccode.com/BANK-OF-BARODA
• https://money.rediff.com/companies/Bank-of-Baroda/14030010/ratio
• https://money.rediff.com/companies/Bank-of-
Baroda/14030010/balance-sheet
• https://money.rediff.com/companies/Bank-of-
Baroda/14030010/profit-and-loss
• https://money.rediff.com/companies/Bank-of-Baroda/14030010/cash-
flow
• https://money.rediff.com/companies/Bank-of-
Baroda/14030010/dividend
• https://www.topstockresearch.com/INDIAN_STOCKS/BANKS/Price
RangeOf_Bank_of_Baroda.html
• www.investopedia.com

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