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Bank of Baroda

Indias International Bank


A Bank of Strength, Diversity and Flexibility

1.1 Executive Summary

Bank of Baroda is one of the most prominent banks in India, having its total
assets as Rs. 714,988.55 Crores as on 31st of March 2015. The bank was founded
by Maharaja Sayajirao Gaekwad III (also known as Shrimant Gopalrao Gaekwad),
the then Maharaja of Baroda on 20th of July 1908 with a paid capital of Rs. 10
Lacs.

A Premier Public Sector Indian Bank Govt. of India holding majority stake
Uninterrupted Profit every year since inception
Global Customer Base : 33+ million
Wide reach through over 2850+ branches and over 1100 ATMs in India
Global footprints in 24 countries with 104 offices. These 104 offices
comprise of 60 branches of the Bank, 43 branches of its overseas subsidiaries
and one representative office, as on 31st Mar, 2015,.
World Ranking 258, Country Ranking 4
Bank of Baroda Ranked 21st amongst Best Indian Brands 2014 in Brand Equity

CONCENTRATION (%): DOMESTIC


BRANCH NETWORK

GLOBAL FOOTPRINTS

* USA

UK *
Belgium *
Bahrain*

* Bahamas
# Trinidad & Tobago
# Guyana

* Oman

Ghana*

Botswana

* Branches=60
# Subsidiaries=43

* UAE

China
* Hong Kong

Thailand
# Kenya
Singapore *Malaysia
# Uganda
# Tanzania
*Seychelles
#

* Fiji

* Mauritius

South Africa
*

Australia

Representative Offices=1
Total Offices - 104

PATTERN OF SHAREHOLDING: 31ST MARCH, 2015

Share Capital: Rs. 443.52 crore


No. of Shares: Rs. 443.52 million
Net worth:
Rs. 39835.55 crore
M. V. per share: Rs. 212.05
B.V. Per Share at Rs.166.83 for FY15
Cost-Income Ratio at 43.63% for FY15
Earnings per Share at Rs.15.83 for
FY15
ROAA at 0.49% for FY15
ROE at 9.21% for FY15
BOB is a Part of the following Indexes
BSE 100,
BSE 200, BSE 500 & Bankex Nifty,
Bank Nifty,
CNX 100, CNX 200, CNX 500. BOBs
Share is
also listed on BSE and NSE in The
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Future and
Options segment.

Q. Do a Strategic Planning exercise for Bank of Baroda in the face


of competition from current players and future entries.
I.

Mission:

.
.

Mission is to be the Top National Bank with International Standards.


To provide High Quality and Low Cost service.

II.

SWOT Analysis

Strengths
One of the biggest names in Banking.

Variety of Services and Products offered by the

Weaknesses
Lesser number of branches compared to SBI and
PNB.

bank.

Low Rural presence.

CBS implementation in its Branches.

Low market share in the International and

International presence adds to the credibility.

Domestic Market with respect to SBI and PNB.

Great Product Diversification.

Late Implementation of Finacle.

International branches give scope to expand in

New banking license regulations by RBI.

other Economies.

Foreign banks.

Expansion in the rural areas to increase

Competition from new banks like Kotak & Yes

volumes.

Bank as well as established banks like SBI and

Potential to penetrate in the urban markets.

PNB.

High level of customer


Opportunities
satisfaction.

Threats

Different IT operating platforms in different


branches.

III.

Strategy Formation:

CBS and IT up-gradation strategy for improving efficiency.


Increasing international and domestic market share through improving branch network
and implementation of the IT developments.
Increasing presence in rural markets by providing market specific products and
increasing the number of branches in rural areas.
Product development in the existing target market of middle class and HNIs and
Corporate.
Educating the rural markets about the various financial products Bank of Baroda can
offer.
Offer cost efficient products compared to new entrants in the Banking Sector.

Q 2. HOW WILL YOU DEVELOP A POSITIVE PERCEPTION FOR BANK OF BARODA FOR BOTH URBAN AND RURAL CUSTOMERS?

CHALLENGES IN RURAL MARKETING

Underdeveloped people and underdeveloped markets


Inadequate Media coverage for rural communication
Multi language and Dialects
Traditional Values
Lack of proper physical communication facilities

STRATEGIES FOR RURAL MARKETING


Strategies that may be helpful in improving marketing in Rural Market are
listed below:
Product Strategies
Pricing Strategies
Distribution Strategies
Promotion Strategies
Marketing Strategies
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Sales Strategies

Marketing Strategy:
Bank of Baroda needs to understand the psyche of the rural
consumers and then act accordingly. Rural marketing involves
more intensive personal selling efforts as compared to urban
marketing. To effectively tap the rural market a bank must
associate it with the same things the rural folks do. This can be
done by utilizing the various rural folk media to reach them in
their own language and in large number so that the brand can be
associated with the rituals, celebrations, festivals, melas and
other activities where they assemble.

CHALLENGES IN URBAN MARKETING


The challenges in urban marketing are:

Urban market flooded with low demand


High degree of competition
Large expenses
Market saturation

STRATEGIES FOR URBAN MARKETING


A. Capture the youth segment: Bank of Baroda can try to capture the gen Y by
introducing new services
B. Personalized Banking: Bank of Baroda should try to build more and better
customer relationships. For example they can simply call the customer on
his/her birthday and wish him/her. This would add a personal touch.
C. Faster banking services: In metro cities and also the tier 2 cities, time is
everything. If Bank of Baroda can provide banking solutions and services
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faster than their competitors, the can grab a major chunk of urban
customers

3) HOW DO YOU THINK SBI WILL RETALIATE?


In 2004, Indias largest bank, State Bank of India (SBI), decided to deploy
Infosyss Finacle core banking, e-banking and treasury solutions across its
global operations after BOB has implemented same in 2002. The bank was
also able to offer more products, roll them out faster, and roll them out globally.
The solution addresses the core banking, e-banking, treasury, wealth
management, CRM, and cash management requirements of universal, retail,
corporate, community and private banks worldwide.
The solution will enable SBI to streamline and consolidate its technology
infrastructure across its global operations apart from providing value added
services on par with international banks whereas BOB was lagging behind it.
The State Bank of India won in many ways. They were able to drop costs, while
gaining functionality and improving customer service whereas BOB was
lagging behind it. Its a win-win-win for the bank, its product offerings, and its
customers.

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This report examines the State Bank of India, the size of the organization,
and the businesses it conducts in its domestic market.
State Bank of India has a greater number of branches spread over rural area
compared to Bank of Baroda and has a good market share of rural customers.
State Bank of India always charge lower interest for Housing loan, which can
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be an advantage for revenue enhancement.

THANK YOU

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