A

PROJECT REPORT ON

COMPETETIVE ANALYSIS OF RETAIL ASSET

PRODUCTS IN BANK OF BARODA
At
BANK OF BARODA
BY
SHWETA RAJU CHAVAN

SUBMITTED TO SAVITRIBAI PHULE PUNE

UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF
PROF. DR. ABHAY KINIKAR
THROUGH
NEVILLE WADIA INSTITUTE OF
MANAGEMENT STUDIES AND
RESEARCH PUNE-411016
2016-2017
3

ACKNOWLEDGEMENT
The successful completion of any task will be incomplete without completing
those who made it possible and whose guidance and encouragement has made
my efforts successful.
I am indebted to Prof. Dr. Abhay Kinikar (Project Guide), for unforgettable
help, kind encouragement and providing me the idea to select the topic and
make proper study of it. I also accord deep sense of gratitude to the
professors of my college for their direct and indirect help during preparation
of this project report.
Words can never express satisfactorily indebtedness but I dare take this
opportunity to declare utmost gratitude to my affectionate parents for their
blessing and encouragement for the success.
Lastly there are many well-wishers and friends and even dearest of mine
who directly or indirectly rendered with valuable help to complete this
professional endeavor. I have deep sense of reverence for all of them.
The greatest of this credit goes to the bestowed upon on us by the lord
without whose yearnings; I could not have even moved a step forward.

SHWETA CHAVAN
(MBA, Finance)

DECLARATION
I hereby declare that the project titled Competetive analysis of Retail
Asset Products in Bank of Baroda is an original piece of research work
carried out by me under the guidance of Prof. Dr. Abhay Kinikar the
information has been collected from genuine & authentic sources. The work
has been submitted in partial fulfillment of the requirement of degree of
Master of Business Administration to University of Pune.

Date

Place

: Pune
SHWETA CHAVAN

EXECUTIVE SUMMARY
In this report I have tried to explain the basics of Competitive
analysis of Retail Asset of Products in Bank of Baroda. I have
included the company profile of Bank of Baroda, as well as stated
the strategic initiative during 2015 such as corporate credit, Retail
business, Priority sector, Financial Inclusion, Asset quality,
Customer service etc.
I have also included the awards and accolades that the bank has
received I the year 2015.
I have also explained the meaning of retail banking and its Subtypes.
I have included the retail products of bank of baroda and their
benefits,
For e.g. value added services, Cards and
other features.
In the end I have mentioned the services of other banks such as
HDFC bank and Axis Bank.

COMPANY PROFILE

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

headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.It is the
second largest bank in India, next to State Bank Of India. Its headquarters is in
Vadodara, it has a corporate office in the Bandra Kurla Complex in Mumbai. Bank
of Baroda is one of the Big Four banks of India, along with ICICI Bank, State
Bank of India and Punjab National Bank.[4]
Based on 2014 data, it is ranked 801 on Forbes Global 2000 list.[5][6] BoB has total
assets in excess of 3.58 trillion, a network of 5326 branches in India and abroad,
and over 8000 ATMs.[7]
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.[8] 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).
In 2015, Bank of Baroda officials recently stumbled upon illegal transfers of a
whopping Rs 6,172 crores in foreign exchange, made to Hong Kong through newly
opened accounts in the bank's Ashok Vihar branch.

Strategic Initiatives during FY15

Corporate Credit
The year FY15 was marked by low credit appetite by the corporate sector on
account of weak investment sentiment and issues relating to infrastructural and
other bottlenecks. Your Bank thus adopted a cautious approach towards corporate
credit growth. As a result your Bank has relatively lower credit growth of
7.82%.During the year your Bank introduced the system of Online loan
application tracking to facilitate knowing status of loan applications. Through
this, the applicant would be able to track the status of his application by logging
through loan tracking link provided on your Banks website.
To promote Forex business and increase fee based income, your Bank added 3
more Authorised B Category Branches to deal in Forex Business directly.
Retail Business
Your Bank strengthened its retail portfolio by placing special emphasis both on
asset as well as on the liability side so as to increase customer satisfaction and also
to generate synergy in its retail business model. On the liability side, with the
formation of a special vertical of Deposit Resources, focus was placed on
garnering higher share of retail term deposits while continuing to shedding the high
cost bulk deposits. A number of initiatives were undertaken during the year for
strengthening and reviving the relationship with existing customers for improving
CASA deposits and promoting debit cards. Furthermore, some special drives were
launched for activation of dormant accounts and funding of zero balance accounts
to widen the active customer base.
From the assets side, your Bank placed added thrust on retail business to make its
loan-book more balanced. To achieve this, your Bank introduced special measures
to increase the attractiveness of its products. Under Home Loans, new schemes
were introduced such as linking of Home Loan Advantage scheme with SB
accounts, for funding premium for home loan borrowers a personal loan scheme
was introduced, and a pre-approval home loan scheme was also introduced. Also,
modifications and improvement to education loan schemes were also effected
keeping in view the needs for higher education. Also, various campaigns were

carried out to place targeted focus on retail business.

Your Bank has now extensive presence of 60 RLFs in FY15 catering to the retail
sector across the country.
MSME Business
To give a boost to the MSME business as well as its employment generating
potential, your Bank undertook a number of initiatives during the year under
review. With the purpose to effectively finance the micro enterprises, your Bank
established Baroda Micro Enterprise Cell to facilitate focused attention on
financing of Micro Enterprise. As at end March, 2015, your Bank operationalised
80 such cells. Your Bank introduced new schemes such as Integrated Development
of leather sector (IDLS) scheme, promoted by Footwear Design & Development
Institute, Baroda, self employment programme for individuals and group
enterprises/SHGs (Restructured SJSRY scheme) and new schemes were designed
for chemical and pharmaceuticals sector in Bharuch Region. Also, many area
specific schemes were introduced given the demand and business potential. Apart
from this, your Bank organized campaigns and celebrated MSME festivals to
increase the awareness among borrowers. Moreover, to reduce the turnaround time,
your Bank rolled out Lending Automation Processing System (LAPS) in all SME
Loan Factories.
Your Bank has a set up of 54 SME Loan Factories (SMELFs) as of March 2015
across the country.
Priority Sectors
Your Bank has always focused on rural areas with its wide network of 1,912 rural
branches and 1,386 semi-urban branches as on March 31, 2015. In order to tap
emerging opportunities, your Bank undertook various initiatives during the year
under review. With the purpose of increasing awareness among farmers, your Bank
undertook two special campaigns viz., Joden Kisan and investment credit. Given
the area specific needs, your Bank formulated tailor made schemes to address their
unique requirements and also concessional rate of interest were offered to them to
enhance its attractiveness.
Furthermore, your Bank launched Agriculture Loan Factories for better customer
service and improving the volume and quality of the agriculture advances. Three
such factories are functioning in Mehsana in Gujarat, Bareilly in U.P and

Muzaffarpur in Bihar.
Your Bank strongly supported the growth and development of social sectors
through its various outfits like Baroda Swarojgar Vikas Samsthan (BSVS), Baroda
R-Seti Centres, Financial Literacy Centres and Micro Loan Factories.
Financial Inclusion
With the launching of Pradhan Mantri Jan Dhan Yojana (PMJDY) during FY15,
the financial inclusion received a massive impetus wherein its coverage and ambit
was enlarged as compared to the earlier initiatives and it is operating under defined
timelines in a mission mode. As always, your Bank has been a frontrunner even in
this initiative as it looks at it not just as a social commitment but as an effective
and profitable business proposition. Your Bank has achieved all the targets set
under PMJDY well ahead of its timelines. As on 31.03.2015, your Bank has
mobilized deposits of Rs 1,101 crore in PMJDY accounts with average balance per
account above Rs 2500. Moreover, the share of Bank of Baroda in opening
PMJDY account is at 5.7% of the total accounts opened by all banks and share in
deposits mobilized is at 7.86%.
Apart from this, your Bank continued its pursuit of achieving the targets set under
disaggregated Financial Inclusion Plan (FIP) 2016. Your Bank surpassed the target
of covering 22,030 villages as against the target of 16,324. Similarly, your Bank
surpassed its targets for opening of Basic Savings Bank Deposit Account and
opening of urban kiosk, and opening of accounts through BC mode.
Given the importance of financial literacy in achieving meaningful financial
inclusion, your Bank undertook Financial Literacy campaigns to educate villagers
on various banking facilities and particularly, the benefits of savings, Aadhaar
seeding, maintaining minimum balance, eligibility for availing Overdraft, use and
safekeeping of RuPay cards, USSD facility, eligibility of availing accidental & life
insurance, lodgment of claim under insurance, micro insurance products, pensions,
benefits of KCC, GCC, prompt repayment, and availability of other retail and SME
loans to them. Your Bank has set up a proper institutional structure for this purpose
in the form of Baroda Sawarojgar Vikas Sansthan (Baroda RSETI). It is a trust
formed by the Bank way back in 2003 for undertaking skill building activities for
unemployed rural youth and providing hand holding support to them till their
settlement in their respective venture. Further, there are Financial Literacy &
Credit Counseling Centres (FLCCs) SAARTHEE that are operational across the
country and Baroda Grameen Paramarsh Kendra that facilitate financial education,

credit counseling, information sharing and problem solving on technical issues,

synergy & liaison with other organizations for value added services and
development activities in rural areas.
Asset Quality
Due to continuous stress in the economy and slow recovery, the banking industry
continued to face the challenge of maintaining asset quality during the year under
review also. Asset Quality therefore continued to show increased stress during the
year leading to increase in gross NPA level to Rs 16,261 crore during FY 15
(3.72% of gross advances) from level of Rs 11,876 crore (2.94% of gross
advances) last year. Similarly, total restructured advances of the Bank increased to
Rs 31,572 crore in FY 15 as against Rs 26,537 crore in FY 14.
Your Bank has developed a comprehensive structure for recovery and credit
monitoring function at the Branch, Region, Zone and Corporate levels. From day
one of FY15, your Bank kept a close watch on potential stress accounts. Apart
from large accounts, , your Bank laid specific focus on recovery of small accounts
by organizing Lok Adalats and Recovery Camps at village/town level. Moreover
special Schemes called Bhagirath Prayas were also launched during first half of the
FY15. Your Bank also launched an incentive linked recovery scheme called
Sankalp-VII, to enlist personalized attention of each and every staff member in
pursuing recovery efforts.
Customer Service
Your Bank is highly responsive to the needs and satisfaction of its customers, and
is committed to the belief that all technology, processes, products and skills of its
people must be leveraged for delivering superior banking experience to its
customers. To improve the customer convenience further, your Bank introduced
SMS alerts, missed call facility, comprehensive information about cheques for
inward clearing and removal of maintenance charges on inoperative accounts. To
get feedback on Banks services, your Bank undertook online customer satisfaction
survey to know about the customers views / problems faced by customers and to
take remedial measures.
Information Technology Structure
Your Bank has been using Information and Communication Technology (ICT) not
only to improve its own internal processes but also to increase facilities and
services for its customers.

With the purpose to enhance the customer experience in alternative delivery

channels, your Bank introduced new facilities in its internet Banking viz., Baroda
Connect channel.
The new enhanced features includes such as online e-banking registration, view
and deposit to PPF accounts, Salary upload facility, Mobile OTP generation
through smartphone, Tax payments of various States, and IMPS (Immediate
Payment services), etc. Moreover, Internet Banking facility is made available on all
Smart-phones/tablets offering comfort of anywhere banking to its customers.
Internet Banking has been implemented in total 16 overseas territories viz.
Tanzania, Uganda, Kenya, Mauritius, Seychelles, Botswana, New Zealand, UAE,
Fiji, UK, Oman, Ghana, Australia, Trinidad & Tobago, Guyana and USA. Internet
banking is also provided in all the RRBs sponsored by Bank.
Mobile Banking - one more alternate delivery channel that offers various facilities
to your Banks customers was completely revamped by enhancing its look and feel,
user-friendliness and user experience for technology savvy customers. The Mobile
Banking platform offers many features and facilities to customers, viz., icon based
user interface, balance enquiry, mini statement, fund transfer, stop payment, cheque
status, and other services. Mobile banking application is made available in all iPhones, Blackberry, Android, Windows devices. Through mobile banking it is
facilitated to make payments for Mobile topup / DTH top-up, Insurance premium
payment, Online shopping, Over-the counter payments, fees payments to
schools/colleges/ universities, Utility Bill payments, Travel & Ticketing, Temple
Donations, and Non internet based railway ticket booking through mobile phones
using IMPS IRCTC.
During the year FY15, your Bank launched the first Cash Recyclers in the country
on July 20, 2014. The unique aspect of Cash Recycler is that, it is enabled to accept
cash as well as dispense cash apart from balance enquiry, mini statement and PIN
change facilities. These have found good response from retail as well as business
customers with ease of operation and 24x7 availability. As of end March 2015,
your Bank has installed 390 Cash Recyclers. Moreover, your Bank installed 1,776
new ATMs and opened 106 NonStop e-Lobbies equipped with Five Self Service
machines viz. Cash Recycler, ATM, Multi Function Kiosk, Passbook Printer and
Digital Signage System for providing 24x7 routine banking services during the
year. Your Bank also provided self service passbook printers to all Metro and
Urban branches apart from select high footfall semi-urban and rural branches. In
short, IT has made a visible difference in the functioning of your Bank and conduct
of its banking operations.

H. R. initiatives
Your Bank has adopted a very balanced people strategy to create a composite and
responsible Human Resource in the Bank that can drive growth and also
adequately meet the various challenges of the current times, viz, the large
retirements, massive induction of talent, huge training requirements and challenges
of successions.
During FY15, your Bank undertook automation and centralization of various
routine HR activities such as claims and reimbursements, thereby achieving faster
turn around time in settling of claims. Further, your Bank has put in place a
manpower planning tool which determines manpower required for different
Branches / units on a scientific basis. The output from the manpower planning tool
facilitates various manpower planning related decisions, that is, recruitment, new
hire allocation, transfers and promotions. Even the performance management for
your Banks officer has been completely automated making the system more
robust, objective and quicker.
To enhance the Employee Engagement, your Bank undertook various initiatives
like conduct of satisfaction surveys and workshops for interaction between juniors
and seniors. These workshops were conducted to improve the employee connect
with HR and top management. Furthermore, to reward the top performers, your
Bank has performance linked incentive scheme for its employees.
With a view to identify and groom young potential leaders, your Bank has
implemented a well orchestrated Talent Management System that proactively
identifies future potential leaders based on various criteria and also grooms them
through a systematic developmental plan for each of the identified future leader.
Against the backdrop of massive recruitments in view of large retirements, training
and developments of new recruits has assumed significant importance. Further,
training has now emerged as a critical function in the organizational endeavour to
compete and keep the workforce fit enough to take on the competition. Your Bank
has instituted learning systems through Baroda Academy which consists of series
of innovations and path breaking initiatives to groom staff in key banking areas
like credit, forex, core banking etc. apart from on boarding new recruits. During
FY15, your Bank rolled out state of the art Learning Management System for elearning courses which are available on the internet providing the convenience of
time and place. Your Bank is the first Bank to launch Mobile Snippets a Mobile
App for the benefit of employees. This enables the employees to access daily

banking news, gist of important BOB / RBI circulars, in-house publications,

announcements for upcoming events and video messages. Moreover, Baroda Apex
Academy has a Facebook page for informal learning. Further, to broad base
learning, your Bank organized events such as motivational speeches, video shows
and group activities etc under the name Mind Gym Series. Apart from this, your
Bank also sought to engage in external trainings so as to widen the knowledge base
of its employees. In recognition of the efforts towards learning practices, your
Bank received a number of awards from prestigious organization such as Golden
Peacock, IBA and others.
Risk Management
Risk is inevitable in the banking business and hence, a sound risk management
framework is the touchstone of an efficient bank. Your Bank has robust
architecture to address various risks inherent in its business viz Credit Risk,
Market Risk, Operational Risk, Liquidity Risk, Interest Rate Risk etc. The
architecture includes mechanism of defining risk appetite, its monitoring, reporting
and review. The objective of the architecture is to ensure that the asset quality is
sustained against economic shocks and sufficient capital buffers are available to
withstand them. The prudent risk taking culture revolves around continual and
optimal enhancement in our systems, process, awareness and skill sets, so that a
balance of support and control functions is achieved.
Few of the testimonies of enhanced risk management practices are that the Reserve
Bank of India has permitted bank for a parallel run under Foundation Internal
Rating-based (FIRB) Approach in respect of Credit Risk. For Market Risk, your
Bank has set up Global Mid Office in Mumbai, which facilitate cost-efficient and
more effective way of measuring, monitoring and reporting the Market Risk
positions in its global operations. The systems to operationalise the Global Mid
Office, compliant with Internal Model Approach of Basel II norms are in advance
stage of implementation. In respect of Operational Risk, your bank has
implemented a web based sophisticated Operational Risk Management solution,
which is one of the best available solution in the industry. Similarly for Asset
Liability Management, Fund Transfer Pricing and Profitability Analysis, Oracle
Financial Services Analytical Application Infrastructure has been deployed.
Your Bank has successfully implemented Basel III norms pertaining to capital
quantity and quality, Leverage Ratio and Liquidity Coverage Ratio with the
transition rules specified by the Reserve bank of India.

Overseas Business
Despite, the weakness in the global economies across advanced and emerging
economies, the overseas business of your Bank continued to contribute
significantly to its overall (global) business. Your Banks wide-spread overseas
presence provides it with significant risk diversification benefits across the globe.
Your Banks large network of branches in overseas territories and its continued
thrust on overseas expansion helped exploit rich business opportunities even
during FY15. As of 31st March 2015, it had operations in 24 countries with 104
offices. These 104 offices comprised of 60 overseas branches of your Bank, 43
branches of its overseas subsidiaries and one representative office. During the year
under review, your Bank opened two new branches at Meru in Kenya and Mwanza
in Tanzania.
Awards & Accolades
During the year FY15, Bank of Baroda received several awards for its noteworthy
performance across various business and financial parameters. The major ones
were as follows.
The Bank of Baroda conferred Best Bank Global Business Development
(Public Sector) & Best Bank Overall (Public Sector) Award in Dun &
Bradstreet Polaris Financial Technology Banking Awards 2014
Your Bank was awarded Best PSU for MSME by India SME Forum on
11th July, 2014 at New Delhi
The Bank of Baroda awarded Skoch Order of Merit in Indias Best 2014
Financial Inclusion & Deepening Awards 2014 by Skoch Consultancy
Services Pvt. Ltd
Your Bank Ranked 21st amongst Best Indian Brands 2014 in Brand Equity
The Economic Times dated 06.08.2014
The Bank of Baroda has won National Prize First Rank in Innovative
Training Practices for the year 2014 from Indian Society for Training and
Development(ISTD) at Bhubaneshwar

 Your Bank was conferred The Most Efficient Public Sector Bank for the
year 2014 by Dalal Street Investment Journal in the Best PSUs of India
Awards held at New Delhi.
These awards and recognition are particularly valuable, as they acknowledge the
merits of your Banks successful business model that made a difference to the
nations progress.

Introduction of Retail banking

Retail banking is, however, quite broad in nature - it refers to the dealing of
commercial banks with individual customers, both on liabilities and assets sides of
the balance sheet. Fixed, current / savings accounts on the liabilities side; and
mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side,
are the more important of the products offered by banks. Related ancillary services
include credit cards, or depository services. Todays retail banking sector is
characterized by three basic characteristics:

multiple products (deposits, credit cards, insurance, investments and

securities);

multiple channels of distribution (call centre, branch, Internet and kiosk);

and

multiple customer groups (consumer, small business, and corporate).

Products

Typical products offered by a retail bank include:

Transactional accounts
o Checking accounts (American english)
o Current accounts (British english)
Savings accounts
Debit cards

 ATM cards
Credit cards
Traveler's cheques
Mortgages
Home equity loans
Personal loans
Certificates of deposit/Term deposits

Sub-types of retail banks

Community development bank are regulated banks that provide financial

services and credit to underserved markets or populations.
Private Banks manage the assets of high-net-worth individuals.
Offshore banks are banks located in jurisdictions with low taxation and
regulation. Many offshore banks are essentially private banks.
Savings banks accept savings deposits.
Postal savings banks are savings banks associated with national postal
systems.

THE RISE OF BARODA SUN

It has been a long and eventful journey for Bank of Baroda.

And while it stands at the threshold of history, looking forwards to
its centenary celebrations next year, maybe its time to turn back
the pages of time, and salute the great moments of its historical
saga.

Bank of Baroda began its first page in the history of time on

July 20th,
1908 when Sir Sayajirao III Gaekwad, the Maharaja of Baroda, set
up the Bank in Baroda in a busy market street in Baroda. Two
years later, in 1910, the Bank opened its first office branch in

Ahmedabad, and the rest as they say is history. The Bank of

Baroda has never looked back since then, and today, it has grown
to a total asset base of about Rs.1, 133bn (end-march 2006), with
a network of over 2, 700 branches and offices and about 670
ATMs.

Early 50s was a day and age when international banking

was not considered fashionable or too risky for Indian companies,
but Baroda followed the Indian communities settled Abroad,
especially the affluent NRI Gujratis and set up its first
international branch in Kenya 1953. Today, the Bank has
expanded its branches to 21 countries worldwide, spanning 4
continents.

Bank of Baroda was nationalized along with 13 other major

commercial Banks on 19th July 1969. As India marched from an
agricultural economy to an industrial economy, to an international
economy Bank of Baroda also evolved at every stage. In the
eighties. The Banks customer focus initiatives led it to various
innovations such as multi-service agency for micro-credit, Gram
Vikas Kendras, and launching Indias first Bank Card, the BOB
Card. Bank of Baroda branch offices opened up in various parts of
the country, and around the world. There were also strategic
takeovers and mergers of other smaller banks like with Hind Bank,
Benaras State Bank, Bareilly Corporation Bank etc.

In 2005, closer to its centenary, the Bank realized that it

should opt for a more drastic change in positioning itself to the
world. There was a need for revolution, a change of image. A rite
of passage from the old to the new, modern, and contemporary.

THE HARITAGE AND THE HEROES

The founder, Maharaja Sayajirao Gaekwad, with his insight into the
future, saw "a bank of this nature will prove a beneficial agency for lending,
transmission, and deposit of money and will be a powerful factor in the
development of art, industries and commerce of the State and adjoining territories."
These words are etched into the mind, body and soul of
what has now become a banking legend. Following the Maharaja's
words, the emblem has been crafted to represent wealth, safety,
industrial development and an inclination to better and promote
the country's agrarian economy. This emblem shows a coin,
symbolizing wealth, embossed with an upraised palm, a safety
cover for the depositor's money, with a cogwheel that promotes
industrial growth in tandem with the two corn ears that stand for
the progress of the staple agricultural growth in the country.

No history is complete without mention of its heroes,

mostly ordinary people, who turn in extra-ordinary performances
and contribute to building an institution. Over the years, there
have been thousands of such people. The Bank salutes these
"unknown soldiers" who passionately helped to create the
legend of Bank of Baroda.
There were also the leaders, both corporate and royal, who provided the
vision and guided the Bank through trail blazing years, and departing, left behind
footprints on the sands of time. This Roll of Honor will be incomplete without
mention of men, of the stature of Maharaja Sayajirao Gaekwad, Sampatrao
Gaekwad, Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and
NM Chokshi.
Between 1913 and 1917, as many as 87 banks failed in
India. Bank of Baroda survived the crisis, mainly due to its

honest and prudent leadership. This financial integrity, business

prudence, caution and an abiding care and concern for the hard
earned savings of hard working people, were to become the
central philosophy around which business decisions would be
effected. This cardinal philosophy was over the 94 years of its
existence, to become its biggest asset. It ensured that the Bank
survived the Great War years. It ensured survival during the Great
Depression.

THE INITIATIVE

Marketing Initiatives
The mid-eighties marked the beginning of the shift to a
buyers` market. The Bank orchestrated its business strategies
around the centrality of the customer. It diversified into areas of
merchant banking, housing finance, credit cards and mutual
funds. A string of segment specific branches entrenched
operations in the profitable markets. Overseas operations were
revamped and structural changes intensified in the territories to
cater to second generation NRIs. Slowly but surely, the move to
become a one stop financial supermarket had been set in motion.
Service delivery standards were stipulated.

People Initiatives
Bank of Baroda has always had an immense faith in the infinite potential of
its people. This has been historically demonstrated in its recruitment practices,
developmental initiatives, placement processes and promotion policies. Strategic
HR interventions like, according cross border and cross cultural work exposure to

its managers, hiring diverse functional specialists to support line functionaries and
complementing the technical competencies of its people by imparting conceptual,
managerial and leadership skills, gave the Bank competitive advantage. The
elaborate man management policies also made the Bank a breeding ground for
business leaders. The Bank provided around a dozen CEOs to the industry- men
who went on to build other great institutions. People initiatives were blended with
IR initiatives to create an effectively harmonious workplace, where everyone
prospered.

Financial Initiative
New norms for capital adequacy required new capital management strategies.
In 1995 the Bank raised Rs 300 crores through a Bond issue. In 1996 the Bank
tapped the capital market with an IPO of Rs 850 crores, despite adverse market
conditions prevailing then, the issue was over subscribed, reflecting the positive
public perception of the Bank's fundamental financial strength.

Digital Initiatives
Bank of Baroda pioneered the shift from manual operating systems to a
computerized work environment. Starting with ledgers, to ledger posting machines,
through ALPMs, the Bank graduated to the use of UNIX based systems to
Mainframes, to client server based Total Branch Mechanization Systems. Today,
the Bank has 1918 computerized branches, covering 70% of its network and
91.64% of its business. Alive to the growing complexities of an intensely
competitive marketplace and the mounting expectations of customers fuelled by
this competition, the Bank reworked its distribution strategy. It ventured beyond
the brick and mortar delivery channel into ATMs and the Omni BOB range of
anytime, anywhere electronic channels of PC banking, telephone banking.

Quality Initiatives
In its relentless striving for quality perfection, the Bank secured the ISO
9001:2000 certifications for 15 branches. By end of the current financial, the
Bank is targeting 54 more branches for this quality certification.

The Future
Revolutionary and discontinuous changes in the operating environment are
a stark reminder that business success is 'impermanent'. The emergence of IT as a
major driver for change, has accentuated the need to initiate a major transformation
program. The conversion to an IT savvy, market driven bank will be a prerequisite
to survival and growth. A major and strategic step in hi-tech, was the establishment
of the Integrated Treasury branch, as a forerunner to full-fledged global treasury
operations.
At Bank of Baroda, change is a journey. It has a beginning. There will be no
end. It will be a long and difficult march. The relocation to the imposing Baroda
Corporate Centre is a true reflection of the Bank's resolve to move ahead of the
times. It will not be out of place now, as it stands on the threshold of a digital era,
to echo the same sentiments that guided the Bank in its platinum jubilee year - 'a
promising future is the sequel to a glorious past'.

BANK OF BARODA NEW LOGO

BOBs new logo is a unique representation of a universal symbol.
It comprises dual B letterforms that hold the rays of the rising sun. 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 farreaching rays dispel darkness to illuminate everything they touch. At
Bank of Baroda, we seek to be the sources that will help all our
stakeholders realize their goals. To BOBs 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.

The single-colour, compelling Vermillion palette has been

carefully chosen, for its distinctiveness as it stands for hope and energy.
BOB also recognize that our bank is characterized by diversity.
Our network of branches spans geographical and cultural boundaries and
rural-urban divides. BOBs 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.
BOBs new corporate brand identity is much more than a cosmetic
change. It is a signal that we recognize and are prepared for new
business paradigms in a globalize world. At the same time, we will
always stay in touch with our heritage and enduring relationships on
which our bank is founded. By adopting a symbol as simple and
powerful as the Baroda Sun, we hope to communicate both.

PRODUCTS OF BANK OF BARODA

Some of the products provided by bank of Baroda in banking
services are as follows:

BARODA CURRENT ACCOUNT

Current Deposits plan is ideal for professionals and
provides flexibility through overdraft facility. The most basic, most
flexible deposit option for those whose transactions take the form
of an everyday exercise. Bank of Baroda's Current Deposits
are the back-bone of all trading activities.
1.

2. BARODA FLEXIBLE RECURRING DEPOSIT ACCOUNT

Enjoy the facilities of a recurring deposit along with the flexibility of
varying monthly installments and a higher yield.

Key Benefits
Regularizes savings by encouraging a saving habit.
Loan/Overdraft facility up to 95% of the deposit amount.

Provision for nomination.

3. CAPITAL GAIN ACCOUNT SCHEME, 1988

The Capital Gain Account Scheme primarily helps you avail of tax
exemptions from capital gains. It offers two types of accounts- Savings and Term
Deposits.

Key Benefits
Tax exemption under section 54(F) (4) of Income Tax Act
1961.

Provision for nomination

4. SAVINGS BANK ACCOUNT

The savings bank account key benefits may be updated as under immediately: -

Key Benefits
Simplest deposit option available to the depositor.
Easy to operate. Terms and conditions kept lucid to facilitate
a layman's understanding. No hidden costs.
Zero balance facility Your Savings Bank Account with us
remain alive even when the balance reaches zero. This
facility is only for salaried employees in Central/ State Govt.
Public & Private Limited Companies, Agents of Life & General
Insurance Corporations and Students. Even for those
receiving compensation from govt. for acquisition of their
properties.
5. NAGRIK BACHAT KHATA
No frills. No hidden charges. Just banking.

Bank of Baroda launches a new small savings product Nagrik Bachat Khata

The Indian economy has undergone a significant transformation since the

economic reforms in 1991 with the banking sector in the forefront. Nagrik Bachat
Khata is a product through which Bank of Baroda intends to extend its services to
a vast section of population by making banking easy and convenient.

Key Benefits
Services designed to cater to a vast majority of Indian
population
Banking simplified
Open account with an initial amount of just Rs. 50/ Zero service charges for non-maintenance of a minimum
balance of Rs. 50/-

OTHER SERVICES:
REMITTANCES (THE BOB MONEY EXPRESS)
Business relations get strengthened and add to the trust when financial
dealings happen on time. The Bank of Baroda remittance facility expedites
payments and transfer of funds, saving you and your associates from waiting
endlessly for funds to get credited.
This facility is for both retail and corporate customers enabling efficient and
easy transfer of money. So no more delays in transfer of funds typical of Banker's
Cheque, Demand Drafts, Mail Transfers and Telegraphic Transfers.

Key Benefits
Can be used to transfer money to the beneficiary's account
in the same bank, or another bank or even to their
residential/office address, thus offering convenient options.

 This electronic remittance is the fastest way of transferring

money from one place to another, at no additional cost.
Added convenience of hassle free and quick customer
service.
The facility is available at 345 branches across 53 centres in
India inclusive of all branches in Ahmedabad, Bangalore,
Chennai, Delhi, Hyderabad, Mumbai, and Pune.
COLLECTION SERVICES

Outward Bills for Collection:

All branches of Bank of Baroda have the facility of collecting Cheques,

Demand Drafts, Interest Warrants, Dividend Warrants, Refund Orders, Clean Bills
and Documentary Bills from customers and various centres. All Cheques and other
instruments are collected into properly introduced accounts and sent for collection
on the day of receipt from the customers or the next working day.
Time Bound Collection:

All branches of Bank of Baroda are prompt in terms of the collections and
forwarding of cheques and other instruments. For metro cities, when financial
instruments are presented in a branch, the proceeds are credited to the customer's
account on the same day in the following week. For state capitals, (and centres
with more than 100 branches), amount is credited only after 10 days. If these
instruments are not collected within 14 days of lodgment, interest @ 2% per
annum over savings bank rate is paid and is credited to the customer's account,
without the customer having to claim it.
Branches also accept requests for collection of Loan Certificates / FDRs
issued by Joint Stock Cos.; prize money of Lottery Tickets, Foreign Currency
Notes etc. The bank levies service charges as stipulated from time to time.
Inward Bills for Collection:

Bills of Exchange, Promissory Notes, Hundi's etc. (Clean / Documentary),

payable locally but received from outstation branches / banks / parties are treated
as "Inward Bills for Collection". Also, Bills received from Bank of Baroda
branches and from other banks, directly from drawers or outstation parties are
treated as Usance (?) Bills.
BOB Quick:

The Funds collected in this offering are credited to the customer's account
within a guaranteed period of 7 days. Bank of Baroda's BOB Quick ensures a
better collection service, which creates new avenues of income and ensures better
investment of funds. All cheques amounting to Rs. 25000/- and above are drawn on
select banks and are eligible for "Quick inter station clearing". Rs. 50/- per
packet is charged for courier charges with an additional but nominal collection
charge.

MULTI CITY CHEQUE

Multi City Cheques are special series cheques issued by the banks customer
to their clients. The cheques will be payable at par, like local cheques, in the Multi
City Cheque centres of the Bank
Who Can Avail The Facility

This facility is being offered to our Current account customers at 201 branches in
16 cities maintaining a balance of over Rs.50, 000/-.
Facilities Provided

The customer will get a personalized "Multi City" cheque book (at par cheque
books) from which he can issue AT PAR cheques to his clients situated at MCC
centres.

Transaction Limits

Cash Payment of multi-city cheque is not allowed. For other transactions there are
no limits.
Charges

Being offered "Free of Charge" at present.

Multi-City Cheque Book

The Cheque book shall have the following features:

1. There would be a notation on top of the cheque as "MULTICITY CHEQUE". Similarly, the bottom of left section of the
cheque will contain the statement "Payable at par at
identified branches at centers listed overleaf except the
centre of issue".
2.

The customers must be advised that they must not issue

multi-city cheques for making local payments.

CASH MANAGEMENT & REMITTANCES

Bank of Baroda Cash Reach:

A product that enables electronic transfers/ cash remittances at designated
bank branches through a specialized network of branches. This facilitates the
availability of funds and credits in your account on the same day.
Dial Bank of Baroda:
Bank of Baroda also offers 24 hours tele-banking service through landline/
mobile phones, facilitating the following:
Balance Enquiry,

 An Enquiry into the last 5 transactions, and,

Bank statements on fax for the last 2 months.

NRI SERVICES
BOB offer a red carpet welcome to all NRIs to bank with us. As a premier nationalized
bank in India, with comprehensive banking experience world-wide, and by virtue of our
consistent track record of profit making since 1908, BOB are confident of meeting all your
banking requirements.

BOBs wide network of foreign branches, offices and Correspondent

Relations at convenient business locations all round the world, which is the largest
among any bank in India, will ensure a smooth and safe banking experience.
BOB continue to cherish our rich ethnic traditional values and culture,
during our personal interface. Yet BOB are speedily repositioning ourselves in the
e-millennium era of banking in India, to take care of your changing needs and
expectations. BOBs information technology strategies are directed towards
enabling us to provide you with a state of the art customer convenience, thereby
facilitating a global banking experience.
BOB understand you, the NRIs, your needs and immensely value your
patronage and would like to extend to you our bouquet of products and services.

OFFSHORE BANKING
Give your FOREX earnings a safe home
In an unpredictable financial world, your well earned money needs a safe
home. A home where it can grow. Bank of Baroda takes this opportunity to

announce the opening of its first Offshore Banking Unit (OBU) in India at
SEEPZ, Mumbai
With years of experience and expertise in overseas banking we are just one
of the few banks that have been granted permission by the Government of India to
operate OBU within the country. This comes in addition to our already existing
OBUs in Mauritius and Bahamas.
So, when you invest your well-earned FOREX with us, you get the expert
opinions and services of a bank, which has an international presence in 16
countries through 61 offices and represented by 2800 fully equipped branches
spanning the globe.

CORRESPONDENT BANKING
The extensive worldwide network of branches of Bank of Baroda offers
Correspondent Banking services to the Indian Banks as well as banks from other
countries.
Our branches are capable of providing the services that an international
correspondent Bank can offer. All the branches of the Bank are well equipped to
handle the business of Correspondent Banking.
The New York, Brussels and London Branches of the Bank are equipped
with latest technology and are having trained and experienced staff for handling the
maintenance of Nostro accounts in US$, Euro and GBP respectively.
The overseas presence of the Bank is further supported by a large number of
correspondent Banks (more than 500) which gives Bank of Baroda access to every
corner of the Globe.

The main services provided are:

1. Collection of bills both Documentary and Clean.

2. Advising / confirming of L/Cs opened by Indian Banks.
3. Discounting of Bills drawn under L/Cs as well as outside L/Cs.
4. Maintenance of foreign currency accounts (Nostro in US$,
Euro, GBP
at New York, Brussels and London respectively)
for settlement of transactions (Link).

5. Making foreign currency payments/ remittance on behalf of

customers of Indian Banks.

RURAL BANKING SERVICES

Strengthening the rural economy

Rural India contributes a major chunk to the economy every year. To give this
sector a stronghold on finance and to enable economic independence, Bank of
Baroda has special offerings that extend credit facilities to small and marginal
farmers, agricultural labourers and cottage industry entrepreneurs.

With the objective of developing rural economy through promotion of

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

Faster technology for better service

Baroda Internet Banking / Baroda Mobile Banking, our latest Internet
and Mobile banking initiatives enable you to operate your account just as you
would in any of our branches. You can through the Internet check your balance,
request for chequebooks and print account details.

Choose from our various products and services, that we sincerely feel will
put a smile on your face; an investment we would like to bank on forever.

APPRAISAL & MERCHANT BANKING

Bank of Baroda provides its assistance to corporate customers to assess

the value of their holdings, in syndicating loans and in consultations for Merchant
Banking purposes.

Appraisal:
Bank of Baroda carries out credit and merchant appraisals of all types of
business ventures including infrastructure projects by our specialized team of
officials at a reasonable cost.
Loan Syndication:
The bank also assists in loan syndication for all kinds of business ventures
when a tie-up of business sources is required.
Other Consultations:
Our team is highly capable of advising on parameters of feasibility &
viability of an existing / proposed project and suggests measures, if required, for
improvement of the business enterprise.

CARDS PROVIDED BY BANK OF BARODA

DEBIT CARD

The Bank of Baroda International Debit Card is accepted at over 10000

Visa Electron ATMs in India and 850000 ATMs worldwide. The card is also
accepted at any 100000 merchant outlets in India and around 13 millions
globally. The card enables you to enjoy the convenience of cash-less
purchasing power without the fear of overdrawing your account
Key Benefits
Take advantage of the most widely accepted card and be able to
withdraw from any ATM displaying the VISA logo, in India and abroad.

 At VISA Electron merchant shops, it can also serve as your electronic

purse, and money gets debited instantly from your account, as you
pay.
The Card allows you to get mini-statements from Bank of Baroda
ATMs, or to check the balance in your account, avoiding visits to even
our nearest branches.

BOBCARD EXCLUSIVE

This card is welcomed at over 29 million Merchant

Establishments and over 8, 00,000 ATMs worldwide. This card is
affiliated with MasterCard International and is very popular
amongst the Bob cards holder.

ELIGIBILITY
Individual: Annual income of Rs. 1, 00,000 or more.
Company: Paid-up capital of Rs. 5, 00,000 or more.
FEATURES:

Revolving credit: Upto Rs. 40,000 per month.

. Cash withdrawal: Rs.10, 000 per month.
. Service charge on revolving credit limit: 1.99%
Service charge on Cash withdrawal: 2% or Rs.100
is higher

whichever

Service Charge on ATM Cash withdrawal: 2.5% or min.

Rs.100
(Domestic), 3% or min. Rs.150 (Abroad).
. Insurance: Free accidental insurance of Rs. 5, 00,000, In case of
air-accident Rs. 10, 00,000.
. Spouse insurance: Rs. 2, 00,000 (need not be a bob card holder).
. Baggage insurance: Rs.10, 000 (for air travel only).
. Minimum payment: 5% per month.
Comprehensive monthly statements.
Zero interest period.
Cash can also be withdrawn at any branch of BOBCARDS Ltd. or at
any of the specified branches of Bank of Baroda

BOBCARD CORPORATE GLOBAL

This credit card is affiliated with visa international & valid

throughout the world all over 30 million establishments and 8,
00,000 Visa ATMs. It can only be applied by a corporate.

ELIGIBILITY
Individual: Not applicable.
Company: Turnover of Rs.1 crore or more.

FEATURES
Revolving credit: Upto Rs.3, 00,000 per month
. Cash withdrawal: Rs.15, 000 ONWARDS
. Service charge on revolving credit limit: 1.99%
Service charge on Cash withdrawal: 2% or Rs.100 whichever is
higher (At Bobcards/Bank of Baroda branches).
Service Charge on ATM Cash withdrawal: 2.5% or min. Rs.100
(Domestic), 3% or min. Rs.150 (Abroad).
. Insurance: Free personal accidental insurance of Rs.7, 50,000, In
case of air-accident Rs. 15, 00,000.
. Spouse insurance: Rs.2, 00,000 (need not be a bobcard holder).
. Baggage insurance: Rs.10, 000 (for air travel only).
. Minimum payment: 5% per month.
Comprehensive monthly statements.
Zero interest period.
Cash can be withdrawn at any branch of BOBCARDS Ltd. or at any

of the specified branches of Bank of Baroda.

FEES: FREE FOR FIRST YEAR (Principal Rs.1500)

(FOR

BOBCARD
EXCLUSIVE
TODAY'S
WOMAN)

BOBCARD Exclusive Woman Card is a tribute to the glorious

women of India who are acclaimed for their contributions to the
human civilization. BOBCARDS presents this Card to offer its
gratitude to the great women souls of the land. Exclusively
designed for the woman of today, this card is packed with great
features and benefits.

This card is welcomed at over 29 million Merchant

Establishments and over 8, 00,000 ATMs worldwide. This card is
affiliated with MasterCard International and is very popular
amongst the Bobcards holder.

ELIGIBILITY
Individual: Annual income of Rs. 75,000 or more.

FEATURES
Revolving credit: Upto Rs. 30,000 onwards.
. Cash withdrawal: Rs.10, 000 per month.
. Service charge on revolving credit limit: 1.99%
. Baggage insurance: Rs.10, 000 (for air travel only).
. Minimum payment: 5% per month.
Comprehensive monthly statements.

In case of medical emergency for a cardholder, his spouse or a family

member, the cardholder can draw cash up to a maximum of Rs.15, 000 from any of
our specified branches other than at the city of residence subject to production of
satisfactory evidence. This facility is over and above the cash advance facility of
Rs.10, 000 p.m.

Loan to Small & Medium Enterprises

A) SCHEME FOR GRANT OF SHORT TERM LOAN TO SMALL

AND MEDIUM SIZED ENTERPRISES
Enterprises GROUP:
Small and Medium-sized corporates, business and trading houses (including
partnership firms).

ELIGIBILITY CRITERIA
Continuous credit rating of at least B+ for the last three
years
Latest Balance Sheet etc. should be available.
Satisfactory financial performance in terms of sales /
turnover and profits. Negative variance, if any, should not be
more than 10%.
Satisfactory dealings with the Bank for at least five years.
No major inspection / audit irregularities.
LOAN AMOUNT:
Upto 25% of the existing Fund based Working capital limits (depending on the
Credit Rating), subject to a minimum of Rs. 10 lakhs and maximum of Rs. 250
lakhs.
PERIOD:
Not exceeding 180 days minimum 90 days.
PURPOSE:
To meet temporary shortfall / mismatch in liquidity, for meeting genuine business
requirements only.
SECURITY
First charge / Equitable mortgage of fixed assets of the
company / firm or extension of existing first charge /
equitable mortgage of fixed assets, ensuring that there is a
minimum asset cover of 1.50.

 Extension of Charge on current assets for the additional

facility ensuring that adequate drawing power is available.
RATE OF INTEREST:
0.5% below the existing rate on working capital limits.

B) SCHEME FOR GRANT OF MEDIUM TERM LOAN TO SMALL AND

MEDIUM SIZED ENTERPRISES
NAME OF THE SCHEME: SME Medium Term Loan
ENTERPRISES GROUP:
Small and Medium-sized corporates, business and trading houses (including
partnership firms).
ELIGIBILITY CRITERIA
Continuous credit rating of at least B+ for the last three
years.
Latest Balance Sheet etc. should be available.
Satisfactory financial performance in terms of Sales/turnover
and profits. Negative variance, if any, should not be more
than 10%.
Debt-equity ratio should not be higher than 2.5:1 and
average DSCR should be not less than 1.5:1.
Satisfactory dealings with the Bank for at least Three years.
No major inspection / audit irregularities.

LOAN AMOUNT:
Upto 25% of the existing fund based Working capital limits (depending on the
Credit Rating), subject to a minimum of Rs. 25 lakhs and maximum of Rs. 500
lakhs.
PERIOD:
Not exceeding 36- months, to be repaid in equal quarterly or half-yearly
installments.
PURPOSE:
To augment enterprises working capital gap and to help in improvement of current
ratio and also for meeting genuine business requirements. The facility will also be
available for repayment of secured and unsecured Loans of other banks or
institutions, but not for any purpose, which is not related to the enterprises activity.
SECURITY:
First charge / Equitable mortgage of fixed assets of the Company / firm or
extension of existing first charge/ equitable mortgage of fixed assets, ensuring that
there is a minimum asset cover of 1.50.
RATE OF INTEREST
0.5% - 1.0% over the Banks BPLR, only for the additional
Loan to be granted under the Scheme.
Prepayment penalty of 1%, if loan is prepaid within -24months of draw down.
PROCESSING CHARGES:
0.1% of the amount of loan, with a minimum of Rs. 25,000/- and maximum of Rs.
50,000/-.

BARODA PERSONAL LOAN

A wedding in the family, maybe it's high time you surprised your spouse with a
priceless gift. Or you simply need to pamper your family with an extended
vacation. These are the times when you may need a helping hand. That's when you
can bank on us. Bank of Baroda's Personal Loan offers financial help to meet your
personal requirements.
Key Benefits

Helps you take care of all kinds of expenses at a short notice.

The loan covers medical expenses, marriage expenses,
travel expenses, honeymoon holiday expenses and any other
personal use.

BARODA PERSONAL COMPUTER LOAN

The number of businesses and homes depending on computers for a more efficient
and systematic, day to day management of activities is on the rise.
Whether it helps your kid's education or augments your business
activities, or provides as a source of information and entertainment
at home, computers have proved to be indispensable.
Although computers are getting cheaper by the year, they still
come with a considerably high price tag. Bank of Baroda's Personal Computer
Loans enable you to finance your dream PC and also provide for the purchase of
legal software.
Key Benefits

Provides adequate finance to purchase a branded PC of your

choice.
Dual finance provision for PC (up to Rs. 1 Lakh) as well as
software (up to 20,000/-).

BARODA DESH VIDESH YATRA LOAN

Bank of Baroda introduces Baroda Desh

Videsh Yatra Loan, a unique loan product
specially designed to cater to the needs of
individuals to meet tour and travel expenses for
visiting any place in India and abroad.

Key Benefits

Travel now and pay later. Repayment in maximum 36 EMIs

Simple procedures / formalities.
Loan can be availed Upto Rs. 10.00 Lacs.

 Available for undertaking pleasure trips within the country as

well as for overseas.
Caters to the needs of individuals (salaried, self employed,
professionals and individuals engaged in business/industry)
No margin money up to Rs. 50, 000.

BARODA EDUCATION LOAN

Education is the most important investment one makes in life.
Higher studies and specialization in certain fields call for
additional financial support from time to time. Whether you
are planning school education (nursery to standard XII) of
your child, pursuing a graduate or post-graduate degree, the
Bank of Baroda Education Loans, can help finance your
ambitions and goals.

ADVANCES AGAINST SHARES/IPOS

i) Advances against Shares to Individuals: Bank of Baroda has introduced scheme of Advances to individuals against shares
for genuine individual investors. The maximum amount of finance that can be
granted to an individual is to the extent of Rs.20 lakh, subject to minimum margin
stipulation from time to time.
ii) Bank Finance to employees to buy shares of their own
companies: In view of a number of companies offering Employee Stock Options (ESOPs) and
employee quota in their IPOs, Bank of Baroda has introduced scheme to extend
finance under ESOP/ IPO to employees to buy shares of their own companies to
the extent of 12- months salary of the employee with a maximum of Rs. 10 Lacs
subject to regulatory guidelines on margin, which is presently as under: -

a. Initial Public Offering (IPO): 50% margin

b. Employees Stock Option Plan (ESOP): 10% margin.

BARODA VAIBHAV LAKSHMI LOAN

Bank of Baroda presents a unique Retail Loan
product Baroda Vaibhav Lakshmi specially
designed for women employees. A loan product that
addresses the varied needs of working women.

Key Benefits

Takes care of all kinds of expenses.

Loan can be availed as term loan or overdraft facility without
any security.
Loan can be repaid in maximum 36 EMIs.

BARODA LOAN TO PENSIONERS

We all retire from our jobs at some point in life. The continuous
toiling and hard work have made most of our dreams come true
and have also provided for our loved and dear ones. Yet there
remain some dreams unfulfilled, some personal dreams that you
need to achieve on your own.

Key Benefits

 Maximum amount of loan - Rs. 1,00000/- or 10 times of your

last monthly pension, whichever is lower
Personal accidental death Insurance cover of up to Rs.
75000/ This loan facility is available at all the branches of the bank,
enabling you the convenience of the Bank of Baroda branch
near you.

BARODA MARRIAGE LOAN

The marriage of your daughter or loving sister is usually one

that you want to celebrate with pride and joy. When it is the
most important day of her life, and yours, you want to give her
the best memories of the day to cherish. You want to make sure
that all arrangements are made well in advance and every
comfort meticulously provided for.
The Marriage Loan from Bank of Baroda is the ideal way to provide for such
occasions. Working women can also avail of this loan to meet expenses related to
their marriage.
Key Benefits

The Baroda Marriage Loan gives you the freedom of a

personal loan, as high as Rs. 2 Lakhs.

Ease of repayment in 60- months, in Monthly/Quarterly/Halfyearly installments or under the EMI (Equated Monthly
Installments) option.

HOUSING LOANS TO NRIS / PIOS

Bank of Baroda presents yet another innovative product

offering in the form of Baroda Housing Loans to NRIs /
PIOs, a unique housing loan facility designed specially for Non
Resident Indians (NRI) and Person of Indian Origin (PIO).

The Home Loans offering from Bank of Baroda essentially provides NRIs and
PIOs for finance in relation to the purchase of a new house, construction of a new
dwelling unit, financing of an old dwelling unit, for repair / renovation / extension
of your existing house, purchase of a plot and repayment of loans from other
housing finance companies.
Key Benefits

A loan product tailor-made for NRI / PIO needs

Opt for Flexi Rate plan to hedge the interest rate risk by
breaking the loan into two separate accounts
Free property insurance and personal accident insurance
No pre payment / foreclosure charges for part as well as full
prepayment (when repaid from own sources by the
borrower)

BARODA HOME IMPROVEMENT LOAN

Bank of Baroda brings to you a unique loan product. A loan for
Repairs / Renovations / Improvement / Extension of Home and for
Furniture, Fittings & Fixtures.

Key Benefits

 Loan available for repairs / renovation / improvement /

extension of the existing house.
Loan available for purchase of furniture / fixtures /
furnishing / other gadgets such as fans, geysers, air
conditioners etc. required, to:
o Our existing housing loan borrowers
o

New borrowers

Free Credit Card:

Free Credit Card (complementary for first year) will be issued
to borrowers with loan limit above Rs.2/-lacs. Type of card
will depend on loan limit as under
Loan limit

Type of card

Above Rs.2/-lacs - Up to Rs.5/lacs

Paras International

Above Rs.5/-lacs - Up to Rs.10/lacs

Exclusive

Concessions in respect of Group borrowers:

Group borrowers and employees of approved organizations will be eligible for
following concessions for loans considered for repairs necessitated on account of
natural calamities such as floods, cyclones and earth quakes etc.
o Rate of Interest - Reduction Upto 0.25%.
o Margin - After satisfying about the reasonability of
project cost, the margin may be reduced by a maximum
of 5%.

o Cross guarantees - cross guarantees may be allowed.

FOREIGN CURRENCY LOAN (FCNRB)

Currencies for loan:
US $, Euro , Japanese and Sterling
Who is Eligible:
This facility would be available to all our existing Corporate / non corporate clients
Purpose:
1.
2.

Working Capital.
Loan for capital expenditure such as purchase of new
plant and machinery, acquisition of equipments and other
assets.

3.

Tenor:
The facility can be allowed for a period from 3 months to 36 months subject to
periodical rollover.
Rate of Interest:
Interest rate would be linked to LIBOR of relevant currency + spread depending on
credit rating, payable at monthly rests.
Commitment Fee:
1% p.a. of unutilized amount of FCL if it is not availed within 30 days of sanction.
Prepayment charges:
1% on the loan amount for the remaining period

 Processing Charges:
1. Working Capital- Rs. 20,000/-

2. Term Loans- as applicable for rupee TL

FINANCE PROVIDED BY BANK OF BARODA IS AS
FOLLOWS:

AGRICULTURAL FINANCE SCHEMES:

Agriculture being the backbone of the Indian Economy,

Bank of Baroda, is contributing significantly in accelerating the
pace of rural development by providing finance to farmers by way
of following agriculture products.

1. Baroda Kisan Credit Card (BKCC) - Empowering the farmer:

The BKCC facility designed exclusively for the benefit of the
farmers aims to provide them the opportunity to manage
and utilize their funds in the manner they deem fit. BKCC
provide adequate and timely support to farmers for their
production needs e.g. purchase of quality inputs,
investment requirements like purchase of agriculture
implements/tractor etc, farming expenses towards farm
maintenance, unforeseen family expenses (consumption)
and maintenance of non-farm activities.
2.

Purchase of agricultural implements including indigenous

improved ones being utilized for field operations including
harvesting/sorting/grading, for not only to farmers, but also
for land-less labourers.

3.

Purchase of heavy agricultural machinery like tractors,

power-tillers, etc. either by farmers having larger holdings
with irrigation facilities or group of farmers with irrigation
facilities.

4.

Purchase of second hand tractors to provide opportunity

to those interested farmers in dry land farming or having a
small land holding who cannot afford to purchase new
tractors.

5.

Production credit for raising various crops from the point

of preparatory tillage till harvesting, for land owners or
permanent tenants or leaseholders or share croppers.

6. Farm produce marketing loan against pledge of receipt of

warehouse or cold storages to the farmers.
7.

Development of irrigation facilities, covering sinking of

wells/bore wells, lifting of water by installation of pump
sets, transporting of water through field channels, water
saving system like drip irrigation/sprinkler irrigation etc. for
farmers. Energizing of pump sets through Non-conventional
Energy Resources like windmill, solar energy etc. or
installation of generation sets is also covered.

8.

Extending working capital needs to dealers of dealers/

distributors/traders of agricultural inputs like seeds,
fertilizers etc. live stock inputs like cattle feed, medicine
etc. and supply of agriculture machinery/ irrigation system.

9.

Extending Custom services to farmers by way of

machinery like tractor thresher etc. Equipment on rental
basis and maintenance of cold storage /godowns for hiring,
by individuals, institutions / organisations.

10.
Providing employment to the unemployed technical
personnel through Agro service Centre.
11.
Setting up of Agri clinic and Agribusiness centre by
agriculture graduates.

12.
Construction farm building/structures like cattle shed,
tractor shed, thrashing yards, fencing etc. by individual
farmer or firms engaged in agricultural activity and is of
long term nature.
13.
Construction/Expansion/modernization/Renovation of
Rural Godowns/Cold storage.
14.
Developments of land like bunding, terracing, leveling
etc. and reclamation of saline, alkaline, ravine soils by
farmer or organization like co-operative societies etc.
15.
Financing Scheduled Caste & Scheduled tribes, who
have been provided/allotted land by the State Govt, can be
financed for purchase of farm implements irrigation pair of
bullocks etc.

EXPORT CREDIT (RS)

1. RUPEE EXPORT
SHIPMENT):

CREDIT

(PRE-SHIPMENT

&

POST-

BoB offers both pre and post shipment credit to the Indian exporters through
Rupee Denominated Loans as well as foreign currency loans in India.
Exporters having firm export orders or confirmed L/C from a recognized
Bank can avail the export credit facilities from BOB provided they satisfy the
required credit norms. The details of the credit norms can be obtained from the
nearest authorized branch of the Bank.

Rupee export credit is available for a maximum period of -180- days from
the date of first disbursement. The corporates, if required can book forward
contracts in respect of future export credit drawals.

2. EXPORT BILL REDISCOUNTING:

BOB offers financing of export by way of bill discounting of export bills to
provide post shipment finance to the exporters at competitive international rate of
interest. This facility is available in -4- currencies i.e. US$, Pound Sterling, Euro
and JPY.
The export bills (both Sight and Usance) can be purchased/ discounted
provided they comply with the norms of the Bank/ RBI.
All exporters are eligible to cover the bills drawn under L/C, non-credit bills
under sanctioned limits under the Bill discounting Scheme.

3. IMPORT FINANCE
Bank of Baroda provides various types of funding/ services to the importers
for facilitating the imports in the country. All the facilities are subject to the
prevalent rules of the Bank/ RBI guidelines. The various facilities provided are:
Collection of import bill.
Financing of import by way of Foreign Currency Loans

Issuing Guarantees etc. on behalf of importers.

COLLECTION OF IMPORT BILLS:

The import bills are collected through the 116 authorized branches at very
competitive rates. The Bank has correspondent relationship with reputed
International Banks throughout the world and can provide the services to importers
who may be importing from any part of the globe.
LETTER OF CREDIT:

Bank of Baroda offers L/C facility for the purchase of goods in the
international market. Being a well-known international Bank of repute, the L/Cs of
the Bank of Baroda are well accepted in the International market.
With the Letter of Credit of Bank of Baroda, importers can build up better
trust/ confidence in their suppliers and develop other business relationship at a
much faster pace.
The vast network of Bank's overseas branches/ subsidiaries and
Correspondent Banks world-wide facilitate prompt & efficient services to the
importers.
The L/C facility can be granted to the importers after assessing their
requirement/ credit worthiness/ financial strength and other parameters being to the
satisfaction of the Bank.
4. BANK GUARANTEES:

Bank of Baroda on behalf of importers/ other customers issues guarantees in

favour of beneficiaries abroad. The guarantees can be both Performance and
Financial.

TREASURY OPERATIONS
In the changing economic environment of the country in particular and the
globe in general, Bank of Baroda was the premier public sector bank in India to
set up a Specialized Integrated Treasury Branch (SITB) in Mumbai and the
integrated approach initiated by the Bank in its treasury operations is now being
emulated by other peer banks.

Bank of Baroda has consciously adopted a focused approach towards

improving efficiency and profitability by successfully integrating the operations of
different financial markets, viz. Domestic Money, Investments, Foreign Exchange
and Derivatives and has made its mark as an important player in the market-place.
The SITB at Mumbai, equipped with the State-of-the-art technology, with
modern communication facilities, handles all types of financial transactions, both
for managing its resources and deployments and effective compliance of regulatory
requirements.

DOMESTIC OPERATIONS

Bank of Baroda has set up dedicated desks at the SITB, headed

by experienced professionals, for undertaking various types of
treasury activities in different financial markets. Apart from
activities pertaining to management of funds and liquidity, the
domestic treasury also handles financial instruments like:
Commercial Papers (CP)
Certificate of Deposits (CD)
Government Securities
Treasury Bills (TB)
Bonds and Debentures
Equities and various other derivatives.
The products and services offered by SITB cater to the inter-bank
market as well as to the Corporate customers of the bank. The

Bank is an active participant both in the inter-bank market and

the corporate for all the products.
Bank's under mentioned branches are authorized for this purpose
and prospective investors may contact for our services:City

Branch Name

Ahmedabad Navrangpura

Telephone No.
7541494, 7540095, 7545504

Chennai

North Beach Road 25232320, 25232233, 25213811

Kolkata

India Exchange

22214468, 22206076, 22206077

Mumbai

Fort University

22672372, 22670620, 22670614

Mumbai

P M Road

22642074, 22662343, 22663348

New Delhi

Parliament Street

23321849, 23325557, 23328666

As an OTC product, the bank also arranges for hedging interest

rate risks or currency risks by offering Interest Rate Swaps (IRS),
Forward Rate Agreements (FRA) or Currency Swaps, with
reference to acceptable benchmark rates. Bank of Baroda also
offers derivative products like Options and Swaptions for
obtaining protection against adverse movements in exchange
and/or interest rates, while retaining the advantage of higher
profit from favourable movements.

FOREX OPERATIONS
Bank of Baroda, one of the major public sector banks in India having a
strong global presence with a wide network of 61 overseas offices, including those
of subsidiaries, spread over 16 countries, is considered as a market leader in foreign
exchange operations in India. At present the Bank is having branches / offices in

countries like USA, UK, Belgium, South Africa, Hong Kong, UAE, Oman, Fiji Islands,
Mauritius, Seychelles, Bahamas, Guyana, Kenya, Uganda and Zambia

The Bank has completed fifty years of operations in overseas

territories and is poised to expand its reach to countries like
Tanzania and China, apart from consolidating its overseas
operations in those countries where the bank has already made
its presence felt.

The modern state-of-the-art dealing room at its Specialized

Integrated Treasury Branch (SITB) at Mumbai provides the
necessary wherewithal to its 95 designated branches across the
length and breadth of the country authorized to handle foreign
exchange business of its clientele.
Through its large network of authorized branches, the bank caters to the
foreign exchange needs of its clientele engaged in export and import trade and the
SITB provides rates for conversion of all major world currencies like U S Dollar,
Sterling Pounds, Euro, Swiss Francs, Japanese Yen and other exotic currencies.
The services to the customers of the Bank include hedging of foreign currency
risks by providing forward covers and various derivatives product.

INTERNATIONAL TREASURY

Bank of Baroda has a strong presence in the Treasury

Market in India as well as abroad. The overseas Money Centre
Branches undertake the Forex treasury operations on behalf of
the customers. All the Forex treasuries at the overseas money
center branches are equipped with state of art technology, highly

experienced and motivated staff with professional skills. These

branches deal in all the major international currencies i.e. US$,
GBP, Euro, Yen as well as other currencies. These branches
undertake the following treasury related activities:
Forex Inter Bank Placements/ Borrowings
Sale & Purchase of currency on behalf of customers
Forward Cover Bookings
Cross Currency Swaps
Interest Rate Swaps (IRS)
Forward Rate Arrangements (FRA's)
Forex Money Market Operations.

INTERNATIONAL TRADE
EXTERNAL COMMERCIAL BORROWINGS
The foreign currency borrowings raised by the Indian
corporates from confirmed banking sources outside India are
called "External Commercial Borrowings" (ECBs). These Foreign
Currency borrowings can be raised within ECB Policy guidelines of
Govt. of India/ Reserve Bank of India applicable from time to time.
ECBs includes the following:
1. Commercial Loans

2. Syndicated Loans
3. Floating/ Fixed rate Notes and Bonds
4. Import loans, loans from the export credit agencies of other
countries.
5. Foreign Currency Convertible Bonds (FCCBs) before
conversion
6.

Commercial loans from multilateral agencies such as IFC,

ADB, CDC etc.

The ECBs route is beneficial to the Indian corporates on account of following:

1. It provides the foreign currency funds, which may not be
available in India.
2. The cost of funds at times works out to be cheaper as
compared to the cost of rupee funds.
3. The availability of the funds form the International market is
huge as compared to domestic market and corporates can
raise large amount of funds at competitive prices depending
on the risk perception of the International market.

FOREIGN CURRENCY CREDITS

The Foreign currency denominated credit facilities are granted to the

Indian corporations in India as well as at the Money Centre Branches abroad.

Corporations interested in raising foreign currency funds

both in India and abroad may contact in India the branches they

are dealing with, the Position Maintaining Offices (PMO's/

Authorized Foreign Exchange Branches), Corporate Banking
Branches, Industrial Finance branches or any of the major branch
in the city. They may also contact the Bank's Regional Offices/
Zonal Offices for the required information/ guidelines. They may
contact the International Division, Central Office at Mumbai on the
following address:
Corporate Office
Bank of Baroda, Baroda Corporate Centre,
International Division,
Plot No C - 26, G - Block, Bandra East, Mumbai 400 051.
Foreign Currency Credit outside India
With a presence at major financial centers of the world, Bank of Baroda has
strong foreign currency resources at Money Centre Branches. This enables Bank of
Baroda to arrange for and grant Foreign Currency Credits to Indian as well as
multinational corporations at competitive rates.
The foreign currency denominated Loans are granted at Money Centre
Branches across the globe. The Foreign Currency Loans granted to Indian
Corporate are granted as per External Commercial Borrowing (ECB) Policy of
Govt. of India.

I.T. INFRASTRUCTURE & IT-ENABLED SERVICES AT

BANK OF BARODA

Banks IT-enabled Business Transformation Programme; Roll

out of Core Banking Solution (CBS):
The Banks technology initiatives are clearly focused on the
customer.
The
Business
Transformation
Programme,
encompassing technology, is being implemented by the
Bank with a view to providing the customer, convenience
banking on 24X7 basis, at major centres in India and abroad,
through deployment of Core Banking Solution with
integrated delivery channels like ATM, Internet, Phone,
Mobile, Kiosk, Call Centre.
For implementation of Core Banking Solution, which will be a
single solution across all the countries where the Bank is
operating, the Bank has tied up with a world-class System
Integrator Hewlett Packard (HP). This solution is a
comprehensive solution incorporating various applications
like Enterprise wide General Ledger, Risk Management, AntiMoney Laundering, Cheque Truncation, Credit Cards, Mutual
Funds, On-line Trading, Data Warehousing, Customer
Relationship Management, RTGS, NEFT, Global Treasury,
Securitization, Human Resources Management System,
Employee Pay Roll.
By March 2006, CBS will be rolled out in 125 branches across
10 major centres in India and U.A.E. and Oman. This will be
taken forward to cover 600 branches including most of the
International Branches by March 2007. Per current plans,
the coverage will be further extended to 1900+ branches by
2008-09.

Banks State-of-the-Art Data Centre:

Bank has built and commissioned its own State-of-the-Art
Global Data Centre (DC) in Mumbai for running its
centralized banking solution and other applications in 1900+
branches across India and 20 other counties where the Bank
is operating. The Data Centre will function as a central data

hub of the Bank for both its domestic and international

operations.
The Data Centre has been designed and implemented by
Hewlett Packard (HP), its technology partner. It conforms to
critical technology standards and is equipped with full
Communication and Network Infrastructure, meeting all the
attributes of a Tier III Data Centre and having certification
capability for BS 7799.
Wide Area Network (WAN) - Networking of Branches under CBS:
1100+ branches in India have been networked through
Lease Lines, ISDN, and VSATs for running multiple
applications under CBS.
Branch Computerization:

Bank has computerized operations at 2697 branches in

India, out of which 516 branches have been brought under
computerization through cluster approach.

ATM Network:
The Banks interconnected ATM network in India now stands
at 535 across 203 centres.

The Banks plans are to extend this network in stages in

future. The Bank also plans to deploy low cost ATMs at Rural
centers.

Tele-Banking, PC-Banking, Any Branch Banking:

Centralized Telebanking, PC Banking and Any Branch

Banking are available at 294 branches across 7 centres.

Information based Internet & Mobile Banking (SMS) services:

These services are offered to customers at over 585

branches across 139 centres. SMS and WAP-based Mobile

Banking Services are also provided to the customers of these

branches, using mobile phone. Customers can get a single
view of their accounts across various branches; can obtain
account view for 2 months as also send request for
chequebook.

BOB Money Express Banks exclusive e-Payment Product:

This product is available at 340 branches across 53 centres.

Real Time Gross Settlement System (RTGS):

RTGS is operational at the Banks Treasury Branch, Mumbai.

Funds transfer facility for customers is now operational at

234 branches.

Utility Bills Payment (Bill Pay):

This is an Internet based service for utility bill payments

through BILLDESK.COM

RBIs Special EFT:

This facility for Inter bank electronic funds transfer is
available at 206 branches of the Bank.
MICR Processing Centres:
Bank of Baroda runs 3 MICR centres - at Ahmedabad, Rajkot
and Combater.
Indian Subsidiaries:
Operations at the Banks Indian Subsidiaries - BOBCARDS
Ltd., BOB Capital Markets Ltd. (Primary Dealership), BOB
Housing Finance Ltd., and BOB ASSET MANAGEMENT
COMPANY LTD - are 100% computerized.

International Operations:
Operations at all Banks overseas branches are 100%
computerized. Operations at all Offshore Business Units, Joint
Ventures & Subsidiaries are also 100% computerized.

Core banking at territory level is implemented in 8 overseas

territories.

COMPETITORS

HDFC Bank

HDFC Bank is a leading Indian retail bank. Innovative products and smart banking
solutions make us the banker of choice for millions of users each day. With a
nationwide network of 4,281 branches, 12,054 ATMs and 240,000+ merchants
(point-of-sale)accepting HDFC Bank credit and debit cards, we continue to
redefine banking convenience.
Personal banking solutions from HDFC Bank offer smart features and benefits to
ensure that you make the most of your relationship with us. Our retail banking
products and services are designed to meet the end-to-end needs of all types of
users. From zero balance savings accounts to customized salary accounts, flexible
home and personal loans to 360 NRI Banking services, HDFC Bank is for
everybody.
HDFC Bank is preferred because it offers the entire banking experience under one
roof. Amazing offers, customized solutions, minimum paperwork and quick
turnaround times are some of the hallmarks of HDFC Bank that has made it the
banker of choice in India.

Axis bank

And banks such as regional national and

other private banks which offer more or
less the same retail products,viz:
Reserve Bank of India
State Bank of India
Maharashtra Bank
ICICI bank
Union Bank
Canara Bank etc.

ANALYSIS OF THE SURVEY

Analysis for the better understanding of the BOB bank account holders was
carried out. The purpose of analyzing was to know customer satisfaction,
awareness of the products offered by the bank and that, their view about some
facilities they would like to have and improvements suggested for better working
of the bank and higher satisfaction.
Questionnaire method was used to carry out the survey. The survey was
carried out in the different part of city of Mumbai. Different types of account
holders like current account holder, saving account and fixed account holders were
interviewed. Some very interesting facts came up which will be dealt in detail later.
A set of 14 questions was used in the questionnaire, which varied from objective
types to descriptive types of questions. Questionnaire was framed and design in
such a manner that it could be filled up within 5 minutes by the person thus saving
time of interviewee.
The sample size of the survey was taken to be 50. Of this 50 people 20
questioned were to businessperson, 15 people were servicemen and professional,
10 students and 5 housewives or other categories. Questions ranged from getting
information about loan, different account, cards, use of bank overdraft etc.
Besides the questionnaire, method information was also gathered by means
of secondary data from sources such as:
1. Branches of Bank of Baroda.
2. BOB websites.

FINDINGS OF THE SURVEY

The first question asked was whether the bank account was
satisfied with the services of the Bank of Baroda.

The results were astonishing. They are as under:

100%
80%
60%

SATISFIED

40%

UNSATISFIED

20%
0%

Each person interrogated had no questions or hesitation in rating services

offered by bank of Baroda as satisfactory. Reason explained why the customer
were given quick response at the Bank of Baroda is the unique services, facility
offered by bank. Some of the facilities offered by the bank, which lead to such high
satisfaction, are as follows:
1. The reason for high satisfaction rate as mentioned by sample was that on
the standing instructions of the customers bank could pay bills such as
telephone bills, light bills etc. with the required minimum or low cost.
2. Sample also said that for the purpose of bank formalities bank send their
own representative, it saves the time of the customers.
3. The account holders were very well informed about the new facilities
started by the bank by sending letters.

4. Bank also provides E-Banking services.

The second question asked was whether they had ever taken a
bank loan?
The results were received are:

LOAN TAKEN BY BUSINESSMEN

60%

60%

50%
40%

40%
YES

30%

NO

20%
10%
YES

0%

Classically bank loans were meant for the businessman. Bank of Baroda has
given loans to almost 60% of its customer.
It is pleasing from the point of view of the bank that almost 60% of the
businessmen having account with the BOB have taken a bank loan. Most of the
bank loans taken by the businessman were for the purpose of raw materials or the
purchase of machinery or for the purchase of assets for the company. Some of them
had even taken loan for starting up the business and said that the bank was very
helpful for arranging for the loans.

LOANS TAKEN BY STUDENT

0.8
80%
70%
60%
50%
40%
30%

YES

NO

20%

20%
10%
0%

The reason for only 10% of students taking bank loans is that students do not
need to take loans. Their caretakers meet most of the expenses and it is seen that in
India loan taken by the students have only for the purpose of consumer durable
such as computer, music system etc

OVERALL LOAN TAKEN BY BOB CUSTOMERS

LOANS TAKEN BY BOB CUSTOMERS

100%
90%
80%
70%
60%
0.26
50%
40%
30%24%
20%
10%
0%

NO

YES

As we have seen earlier that 60% of businessman have taken loan, and 20%
of student have taken loan from the Bank. Overall, almost 48% of the BOB
customers have taken loan from the Bank. This is a big number; almost every
second customer has taken loan from the Bank.
This is very impressive rate of loan given by the Bank. It is assumed that
loan sanctioned in the rate of 45% to 55% is a good as it should be. As stated above
the loans given by the Bank are mainly because of attractive loan schemes offered
by the Bank. Because of this attractive loan scheme facility it has been able to
attract more loans than other Banks.
Another reason for such high BOB success of loan scheme is very few
formalities to carry out during the loan. The processing time taken by Bank is
much lower than the other Banks. The sample interviewed told that the time taken
for granting of loan scheme is almost half than taken by other Banks. One more
reason is extensive advertising taken up by Bank of Baroda, resulting in increasing
in bank of Barodas brand name.

Another question asked was that how they would like to

payback the loan taken from the Bank?
The overall result is as follows:

MONTHLY INSTALLMENT 44%

QUATERLY INSTALLMENT - 34%
YEARLY INSTALLMENT 22%
HOW THEY LIKE TO PAYBACK

10%
100%
90%
40%
80%
70%
60%YEARLY INSTALLMENT
50%
40%
50%
30%
20%
10%
0%
BUSINESS

6%
26%
34%
34%
QUATERLY INSTALLMENT

MONTHLY INSTALLMENT

60%
40%

STUDENT

OTHERS

From the graph we can see that customers mostly like to pay back the loans
as monthly installment. As we see that 50% of businessman like to pay loan as
monthly base. Like them others customer also likes to pay back the loan as
monthly base, students are 40% & others are 60%.
The main reason for such high payback of monthly installment schemes in
all customers is because they can instruct the Bank to debit their account at every
month so that they dont feel the pressure of loans and interest. The same is the
reason with businessman especially those whom take big loans which amount to
high interest. So monthly repayments can decrease the loan and interest liabilities
easily.

Another question asked was which of the BOB card customers

customer like to use?
The results are as follows:

70%
60%

60%
50%

50%

44%
38%

40%
30%

30%
CREDIT CARD

36%
DEBIT CARD

20%
10%
0%
BUSINESS

STUDENT

OTHERS

As we can see from the graph that almost 50% of accountholders have a credit
cards. Credit card often termed, as credit money is one of the products which
today every bank is providing to its customer. We can see that businessman have
the highest number of credit cards i.e. around 60%. This is because they are most
likely to be using more than any other category. Credit cards are very important as
during traveling customers dont need to keep too much of cash with them and can
just use the credit card as cash. Credit cards now have a Universal application.

When inquired about Internet Banking used by customer or

not, results were not in favor of Bank.

YES

76%

24%

NO

Customers are not at all interested in using the internet banking service,
because they dont have that much of knowledge about the process that how to
operate internet, how to access in it, as well as all customers dont have their on
computers so through which they can operate. Also customers are thinking that the
internet banking service is not safe.

QUESTIONNAIRE:

NAME: -

OCCUPATION:

1.

PROFESSIONAL
SERVICE
STUDENT
OTHERS (SPECIFY)

WHAT TYPE OF ACCOUNT DO YOU HAVE WITH BANK OF

BARODA?

CURRENT ACCOUNT
SAVING DEPOSIT ACCOUNT
FIXED ACCOUNT
FLEXIBLE RECCURING DEPOSIT ACCOUNT
OTHER (PLEASE SPECIFY)

2. ARE YOU SATISFIED WITH THE SERVICE PROVIDED BY THE

BANK OF BARODA?
YES
NO

3.

WHICH OF THE FOLLOWING DEPOSITS YOU ARE AWARE OF?

FIXE DEPOSIT
CURRENT DEPOSIT

SAVING DEPOSIT
RECURRING DEPOSIT
MONTHLY INCOME PLAN
NAGRIK BACHAT KHATA
OTHERS (PLEASE SPECIFY)
4. HAVE YOU EVER TAKEN A BANK LOAN?

YES
NO
5. WHICH OF THE FOLLOWING LOAN SCHEME YOU WERE AWARE OF?

HOUSING LOAN
PERSONAL LOAN
CONSUMER DURABLE LOAN
LOAN AGAINST SHARES
COMMERCIAL VEHICLE LOAN
BARODA DESH VIDESH YATRA LOAN
6. WHAT KIND OF LOAN WOULD YOU LIKE TO TAKE OTHER THAN
THOSE MENTIONED ABOVE? WHY?

7. HOW WOULD YOU PREFER TO PAYBACK THE LOAN?

MONTHLY INSTALLMENT
QUATERLY INSTALLMENT
YEARLY INSTALLMENT

8. DO YOU USE INTERNET BANKING FACILITY PROVIDE BY

BANK OF BARODA?

YES
NO

9. CAN YOU LIST SOME OF THE SERVICES WHICH YOU KNOW BANK
OF BARODA OFFERING?

10. DO YOU OWN ANY BOB CARD?

BOB EXCLUSIVE WOMEN CARD

BOB EXCLUSIVE YOUTH CARD
BOB PARAS CARD
BOB GOLD CARD
BOB SILVER CARD
INTERNATIONAL DEBIT CARD
OTHER (PLEASE SPECIFY)

11. DO YOU HAVE ANY INVESTMENT SCHEME WITH BANK OF

BARODA?
YES
NO

12. DO YOU KNOW THE RATE OF INTEREST OFFERED BY BANK

OF BARODA?

YES
NO

13. IF YES, PLEASE SPECIFY: -

14. HAVE YOU EVER USED PERSONAL BANK OVERDRAFT?

YES
NO

CONCLUSION

Banking sector has seen a lot of transformation in

the past post liberalization period, it has became very
important for bank to give services best to their
capabilities. If the customers are not satisfied with the
services provided by the bank, they will transfer their
account to some other bank. Result is loss of revenue for
the bank and the loss of goodwill.

New technology needs to be introduced in the

banking sector as it is utmost clear that people are not
only expecting normal banking services but they want to
be as their business partners and help accordingly. New
concept such as universal credit cards, debit cum ATM
cards need to be promoted along with the concept of
plastic money because most of the privatized bank are
increasingly becoming fee earning oriented. Therefore,
the bank has give more and more services to the people
in order to have increased returns from fee-based
function.

Professionalism is getting the key word in banking

sector. People now expect the privatized banks to become
more and more professional rather that of earlier years
where the staff has no sympathy or understanding for the

time and value of the customer. People today demand

more working hours, more services to be provided at no
extra cost or minimum cost. This has led to more
professional attitude by the banking people.

Foreign banks have not only brought in new

concept from the west but are also responsible for
improving quality standards in the banking sector. With
the influx of foreign bank, most of the Indian banks have
felt the need of change for the betterment of services to
the customers. Even then most of the nationalized bank
are still following the age old traditions and are having
low satisfaction rates amongst its customer which results
in mergers of different banks or most of the banks
making heavy loses at nay expense of the government.

Banks such as SBI, HDFC and other privatized

banks in India are doing a terrific job in banking sector
handling better human resource, adopting new
technologies, bringing new concepts and maintaining a
very high standards in services provided to the
customers. They are even giving a run for the money to
the foreign bank that everyone feels are the benchmark
for measuring banking standards.

Perhaps the oldest form of service sector known to human is going

through a radical change not only throughout the world but also in India.

The greatest beneficiary of this change is none other than the human
itself.

Theme of the project

The project speaks about the different types of

services offered by the Bank of Baroda. The project tries
to highlight the awareness of the customers in respect to
various products and services offered by the Bank of
Baroda. It also tries to find out satisfaction rate amongst
its customer.

Banking scenario

Banking system has improved tremendously over

the years. With the invasion of foreign bank on Indian soil
the outlook pf banking sector in India has changed
dramatically. Due to the professionalism showed by the
private banks in India it has been able to give other
foreign bank run for its money. Today the banks are
becoming more technology oriented rather than work
force oriented. New concepts are coming in day in day
out. Bank today are providing services to the best of their
ability and in this way had benefited the common man.

Survey

For knowing the satisfaction amongst its client and

awareness of BOB products and services know and used
by the customers of the Bank of Baroda a survey was
carried out in the city of Mumbai. The sample size
selected for the survey was kept at 50. The account
holder which included individual having current account,
saving account, and student having saving account.
Questionnaire method was used for primary data
collection procedure. Secondary data collected from other
sources.

Recommendation

Survey was analyzed and it is recommended as it

improving the awareness amongst the customers
regarding Banks products and services and how banks
serve well.

BIBLIOGRAPHY

WEBSITE
WWW.GOOGLE.COM
WWW.BANKOFBARODA.COM

WWW.RBI.ORG.IN

WWW.AXISBANK.COM

WWW.HDFCBANK.COM

WWW.WIKIPEDIA.COM