INDEX

CONTENT

PAGE NO.

INTRODUCTION
EVALUATON OF BANKS

4
6

THE RISE OF BARODA SUN

THE INITIATIVES

10

PRODUCTS AND SERVICES

13

BOB CARDS

22

LOANS AND FINANCE

26

TREASURY OPERATION

40

INTERNATIONAL TRADE

43

I.T. INFRASTRUCTURE

45

QUESTIONAIRE

54

CONCLUSION

57

EXECUTIVE SUMMARY

59

BIBLIOGRAPHY

61

INTRODUCTION

Banks were India started on the British pattern in the beginning of the 19 th century. In
those days, all the banks were joint stock banks and a large number of them were small and weak.
At the time of the Second World War, about 1500 joint stock banks were operating in undivided
India, out of which over 1400 were non-schedule banks. A quiet few of them were managed by
bad and dishonest management and naturally, there were a number of bank failures. Hence the
government had to step in and the Banking Companies Act, 1949 (which was subsequently
renamed as Banking Regulation Act) was enacted which led to gradual elimination of weak banks
who were not in a position to fulfill the various requirements of the Act. In order to strengthen the
weak units and revive public confidence in the banking system, a new section 45 was inserted in
the Banking Regulation Act in September 1960, empowering the Government of India to
compulsory amalgamate weak units with stringer once on the recommendation of RBI.
Today banks are broadly classified into two:

Schedule Banks and

Non-schedule Banks.

Schedule banks are those banks, which are included in the second
schedule of the Reserve Bank Act, 1934. In terms of Sec. 42(6) (a) of the
Reserve Bank of India Act, a bank should fulfill the following conditions:
1. It must have a paid up capital and reserves of an aggregate value of not less than Rs.5
lakh;
2. It must satisfy RBI that its affairs are not conducted in a manner detrimental to the
depositors;
3. It must be a state co-operative bank, a company under Companies Act, 1956, an
institution notified by the Central Government in this behalf or a corporation, or a
company incorporated by or under any law in force in any place outside India.
The schedule banks enjoys certain privileges like approaching RBI for financial assistance,
refinance etc and correspondingly, they have certain obligations like maintaining certain cash

reserves as prescribed the RBI, submission of returns etc. The schedule commercial banks in
India comprise of, state bank of India and its associates (8), the other nationalized banks (19),
foreign banks, private sector banks, co-operative banks and regional rural banks. As the and of
30th June 2003, there were 300 schedule banks in India having a total network of 64,918 branches
among them.
Non-schedule Banks are those joint stock bank s, which are not included in the second
schedule of the RBI act because of the failure to reply with the minimum requirements for being
scheduled. After the nationalization of 14 commercial banks in 1969, no new private banks were
licensed by RBI in the country though there was no legal bank on the entry of private sector
banks. The Narsimham committee report of 1991, has envisaged a larger role for private sector
banks. In recognition of the need to introduce greater competition with a view to achieving higher
productivity and efficiency of the banking system, RBI issued few guideline ins in January 1993
for the entry of private sector banks Also the new bank after being granted license under the
Banking Regulation Act, shall be registered as a Public Limited Company under the Companies
Act, 1956. Subsequently 9 new commercial banks have been granted license to start banking
operations.
Over the last several years, the Government of India have been seized of the problem of
weakness that has gripped some parts of the banking system. This weakness became apparent in
the early 1990s when, following introduction of internationally accepted prudential accounting
norms, banks were required to segregate their performing and non-performing assets and, after
providing for those, which are on-performing, build up a minimum level of capital related to riskweighted assets.
Save in a few cases wherein additional capital was needed to support the growing volume of
business, the need for repeated capital infusion is on account of chronic weaknesses, which, have
been caused by several factors, both internal and external. One would necessarily need to look
into their ability to achieve a minimum level of competitive efficiency in order that their
operations become profitable on a sustainable basis. Any effort at their restructuring will have to
involve operational as well as financial restructuring.
The banking system, which constitutes the core of the financial sector, plays a critical role
in transmitting monetary policy impulses to the entire economy system.

EVALUATION OF BANKING INSTITUTION

It may be said that banking in its most simple form, is as old as authentic historic. As early
as 2000 BC. Babylonians had developed a system of granting credit was widely prevalent.
Traces of credit by compensation and by transfer orders are found in Assyria, Phoenicia and
Egypt before the system attained full development in Greece and Rome. The books of the old
Sanskrit lawgiver, Manu, are full of regulations governing credit. He speaks of judicial
proceeding in which credit instrument were called for, interest of loans on bankers, users, and
even of the renewal of commercial papers.
In Rome, the bankers were called Argentarii, Mensarii or Collybistoe. The banks were
called Tabernoe Argentarioe. Some of the banks carried business on their own account and others
were appointed by the Government to receive the taxes. They used to transact their business on
similar lines as those of the modern bankers. People used to settle their accounts with their
creditors by giving a cheque or draft 011 the bank. I r the creditor had also an account at the same
bank; the account was settled by an order to make the transfer of such money from one name to
another. T pay money by a draft is known as prescribe and rescribere, and the draft was known as
attribution. The banker also received deposits and lent money. Loan banks were also common in
Rome. From this loan banks, the poor citizens received loans without paying interest. They lent
money for a period of three or four years on the security of land.
During the early periods, although the banking business was mostly done by private
individuals, many countries established public banks either for the purpose of facilitating
commerce or to serve the Government. The bank of Venice, established in 1157, is supposed to be
the most ancient bank. Originally, it was not a bank in the modern sense, being simply an office
for the transfer of the public debt.
History shows the existence of a Monte in Florence in 1336. The meaning of Monte is
given in Italian Dictionary, 1959, as Monte a standing bank or mount of money, as they have
in diverse cities of Italy. Banbrigge, an English writer, speaks about the three bankers of
Venice meaning the three public loans or Monti.

As carly as 1349, the business of banking was carried on by the drapers of Barcelona.
There it was subject to official regulation. The drapers were not allowed to commence this
business until they had given sufficient security. During 1401, a public bank was established in
Barcelona. It used to exchange money, receive deposits and discount bills of exchange, both for
the citizens and for the foreigners. During 1407, the bank of Genoa was established. The bank of
Amsterdam was established in 1609to meet the needs of the merchants of the city. It accepted all
kind of specie on deposits. These deposits could be withdrawn on demand or transferred from the
account of one person to another. The bank also adopted a plan by which a depositor received a
kind or certificate entitling him to withdraw his deposit within six months this written orders, in
the same manner as the modern cheques. It is interesting note that most of the European banks
now in existence were formed on the model of the bank of Amsterdam.
The beginning of English banking may correctly be attributed to the London Goldsmiths.
They used to receive their customers valuables and funds for safe custody and issue receipts
acknowledging the same. These notes, in course of time, became payable to bearer; demand and
hence enjoy considerable circulation. In fact, the Gold smiths note may be considered as the
precursor of the bank note. The business of the Goldsmiths got a rude shock by the ill treatment
of the Government of Charles II, under the cabal ministry. In the word of Bagehot: It had
perpetrated one of those monstrous frauds which are likewise gross blunders. The Goldsmiths,
who than carried on upon a trifling scale what we should now call banking, used to deposit
reserve of treasure in the Exchequer with the sanction and under the care of the Government.
But Charles II showed that it was undeservedly. He shut up the Exchequer, would pay no one
and so the Goldsmiths were ruined. However the ruin of Goldsmiths marks a turning point in the
history of English banking which led to the growth of private banking and the establishment of
the Bank of England in 1964.
This is true not only in the case of India but also of the other countries. Although the
business of banking is old as authentic history, banking institutions have since then changed in
character and content very much. They have developed from a few simple wants to the
complicated mechanism of modern banking, involving the satisfaction of the whole community
by securing speedy application of capital slowly seeking employment and thus providing the very
life-blood of commerce.

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 20 th,
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. 4.47 trillion (end-march 2012),
with a network of over 5,600 branches and offices and about 2000 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 26 countries worldwide, spanning 4 continents.
Bank of Baroda was nationalized along with 13 other major commercial Banks on 19 th 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 microcredit, 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.

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 whatBank of Barodabank stands for. It is the
single most powerful source of light and energy its far-reaching rays dispel darkness to
illuminate everything they touch. At Bank of Baroda, we seek to be the sources that will help
allBank of Barodastakeholders realize their goals. To BOBs customers, we seek to be a one-stop,
reliable partner who will help them address different financial needs. ToBank of
Barodaemployees, we offer rewarding careers and toBank of Barodainvestors 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 thatBank of Barodabank is characterized by diversity.Bank of
Barodanetwork 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 forBank of Barodabrand because it is a universal symbol of dynamism and optimism
it is meaningful forBank of Barodamany 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 withBank of Barodaheritage and enduring relationships on
whichBank of Barodabank 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:

1. 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.

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.

10

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.

11

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.

12

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 This Facility

This facility is being offered toBank of BarodaCurrent 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

13

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 "MULTI-CITY 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

14

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 ofBank of
Barodaconsistent 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 cherishBank of Barodarich ethnic traditional values and culture,
duringBank of Barodapersonal interface. Yet BOB are speedily repositioning ourselves in the emillennium 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 youBank of Barodabouquet 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 toBank of Barodaalready 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.

15

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.
Bank of Barodabranches 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.

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

17

Appraisal:
Bank of Baroda carries out credit and merchant appraisals of all types of business ventures
including infrastructure projects byBank of Barodaspecialized 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:
Bank of Barodateam 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 cashless purchasing power without the fear of overdrawing your account

18

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 Bank of Baroda 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.

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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

whichever is higher

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 airaccident 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

20

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).
21

. 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)

BOBCARD EXCLUSIVE (FOR 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.

22

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 ofBank of Barodaspecified 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

23

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.

24

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).

25

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.
26

SECURITY:
First charge / Equitable mortgage of fixed assets of the Company / firm or
extension of existing first charge/ equitable mortgage of fixed assets,
ensuring that there is a minimum asset cover of 1.50.
RATE OF INTEREST

0.5% - 1.0% over the Banks BPLR, only for the additional Loan to be
granted under the Scheme.

Prepayment penalty of 1%, if loan is prepaid within -24- months of

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.

27

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.

28

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

29

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.
30

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 fromBank of Barodajobs at some point in
life. The continuous toiling and hard work have made
most ofBank of Barodadreams come true and have also
provided forBank of Barodaloved and dear ones. Yet
there remain some dreams unfulfilled, some personal
dreams that you need to achieve on your own.

31

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.
32

Ease of repayment in 60- months, in Monthly/Quarterly/Half-yearly

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

33

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:

Our existing housing loan borrowers

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

34

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.
1.

Rate of Interest - Reduction Upto 0.25%.

2.

Margin - After satisfying about the reasonability of project cost,

the margin may be reduced by a maximum of 5%.

3.

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 allBank of Barodaexisting Corporate /

non corporate clients

Purpose:
1.

Working Capital.

35

2.

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:

36

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 nonfarm 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 landless 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.
37

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.

38

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

CREDIT

(PRE-SHIPMENT

&

POST-

SHIPMENT):
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.
39

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.

40

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:

41

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

42

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 forBank of Barodaservices:City
Ahmedabad
Chennai
Kolkata
Mumbai
Mumbai
New Delhi

Branch Name
Navrangpura
North Beach Road
India Exchange
Fort University
P M Road
Parliament Street

Telephone No.
7541494, 7540095, 7545504
25232320, 25232233, 25213811
22214468, 22206076, 22206077
22672372, 22670620, 22670614
22642074, 22662343, 22663348
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
43

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

44

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

45

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:

46

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:
47

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

48

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,
Anti-Money 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:

49

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.

50

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):

51

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.

52

CONCLUSION

Banking has become one of the most important tools for the
success of any country. It has become became a backbone of any
countries growing economy. Banking over the years, in India has
seen lots of ups and downs. Today due to liberalization of the
economy, more and more sectors are becoming more and more
competitive. Banking is no different.
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

53

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.

54

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.

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EXECUTIVE SUMMARY

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

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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.

Conclusion

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To conclude banking sector is the backbone of any economy.

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

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BIBLIOGRAPHY

BOOK
BANKING THEORY AND PRACTICES
- K.C SHEKHAR

MAGAZINE
BUSINESS INDIA
BUSINESS TODAY

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WEBSITE
WWW.GOOGLE.COM
WWW.BANKOFBARODA.COM

NEWSPAPER
DNA

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