Report

A
SUMMAR TRAINING REPORT
ON
A Comparative study of Retail Loan products of

Bank of Baroda with competitive & peer bank
submitted in partial fulfillment for the award of

Post Graduate Diploma in Management
[2009-2011]
Submitted to: Submitted by:

Dr. P. K. AGARWAL AMAN PRAKASH
(Director) PGDM 3rd Sem.
Roll N0. M09004
IIMT PROFESSIONAL COLLEGE, MEERUT
COMPANY CERTIFICATE
Page 1
GUIDE CERTIFICATE
Page 2
DECLARATION
I, Aman Prakash, student of PGDM , here by declare that project entitled A

Comparative study of retail loan products of Bank of Baroda with
competitive & peer bank submitted in the partial fulfillment of the degree for
Post Graduate Diploma in Management to IIMT Professional College is of my
own accurate work.
I further declare that all the facts and figures furnished in this project report
are the outcome of my own intensive research and findings.
Name of student
Aman Prakash
Page 3
ACKNOWLEDGEMENT
First of all I would like to express my honest gratitude towards my institute,

IIMT Professional College for its Summer Internship Program, in which we are
inspired to take such challenging and focused projects.
I am thankful to BANK OF BARODA for providing me opportunity to work

with their organization and hence helping me to complete my Summer Internship
Program.
It has been a great time learning new things about Retail loan Industry and
acquiring professional attitude under the expert guidance of Mr. Manoj Agarwal
(Chief Manager) without whose constant encouragement and ever guiding spirit,
this project would not have been completed at all. I also convey my special thanks
to Mr.S.B.Sharma (Sr. Manager) and Mr. R.S. Malik (Manager). I pay my
sincere gratitude to all the respondents for giving me their precious time, without
their help I would not have been able to complete this project.
I want to give my genial and sincere thanks to Prof. P. K. Agarwal (Director,

IIMT Professional college) .I would like to sincerely thank to Ms. Anu Mittal
for his valuable suggestion and guidance and making it possible for us to
accomplish the project.
Above all, I bow my head before Almighty GOD without whose blessing
my present project would not have existed and thanks for giving me patience and
strength to overcome the difficulties, which crossed my way in the
accomplishment of this endeavor.
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EXECUTIVE SUMMARY
In the present age of business when profit maximization is the prime motive of
every individual, Price competitiveness & service quality are the major thrust areas to
conquer the market. Initiative, foresight, talent &competence are the imperatives to
manage the modern business.
The PGDM course inculcates those skills in students, which prepares them to
face the challenges of business world. In the midst of the course, summer training in
some business organization is arranged for the student that is very essential. Such
training gives practical experience and helps the students to view the real business
world closely, which in turn widely influences their conception and perceptions.
The idea and intention of taking training in the field of banking came up to me
because of tremendous changes in banking services. These days presence of banking
as service industry for anyone is must and no individual can ignore it. To have an
insight on this emerging domain of banks in India and its potential as a career led me
to BANK OF BARODA to do my summer project in this field. The summer training
becomes more significant when it is done in a reputed & fast growing professionally
managed organization like BANK OF BARODA. We were really fortunate to get an
opportunity to work with it.
The purpose of training was to provide practical exposure of working

environment, along with learning of operational aspects of Banking Industry and the
role managers play in the sectors.
The project assigned required a lot of extensive study, as we had too many
irons in fire. It gave an exposure, which helped us to get the thorough understanding
of fast moving Loan Industry and different market strategies used. We found practical
work totally different from the theoretical one.
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CO
NTENTS
INDEX
Particular Page No.
Company Certificate i
Guide Certificate ii
Declaration iii
Acknowledgement iv
Executive Summery v
Chapter 1
o Significance of Study 01
o History of Banking 2-5

o Introduction of Topic 6-
14
Retail Banking 15-
17
Retail Loan 18-
20
Retail Loan Factory 21-
25
Retail Lending Product 26
58

Chapter 2
o Research Methodology
Page 6
Objective of
Research 59
Research Methodology 60-
61
o Comparative Study of Retail Loan 62-

100
Product of BOB with Other Bank
Chapter 3
o Data Analysis And Interpretation 101-109
o Findings 110
o Suggestion 111
o Limitation 112
o Conclusion 113
Bibliography 114
Annexure 115-118
SIGNIFICANCE OF THE STUDY
Rising inflation is the main factor showing the importance of retail loans in our
daily life. In todays scenario life is moving out on the basis of loans. For each and
every small luxurious things retail loans are the best option. To increase the living
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standard this again plays a
significant role. Availability of these loans for every small or big segment of people
makes it more renowned. In each sector people move easily for these loan facilities.
Flexibility in schemes & rate of interest make it more useful. For higher studies,
education loan is like a necessity for middle or low-income groups. And for all these
facilities study on retail loans is must. Thus, the topic shows its importance helping
others in their livelihood.
The study provides the complete information about all close competitors banks
that provide the loan facility.
The study will also give information about prospective investors both
individual as well as institutional clients in areas of surrey where they can get
lead.
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HISTORY OF BANKING IN INDIA
Indias banking system has several outstanding achievements to its credit. An

extensive banking network has been established in the last thirty years, and Indias
banking system is no longer confined to metropolitan cities and large towns in fact,
Indian banks are now spread out into the remote concerns of our country. In terms of
branches, Indias banking system is one of the largest; the banks have played in
financing economic activities in different sectors. We can identify three distinct
phases in the history of banking-
1. Early phase from 1786 to 1969
2. Nationalization of Banks and up to 1991 prior to banking sector reforms
3. New phase of Indian banking with the advent of Financial & Banking Sector
Reforms after 1991.
NATIONALISATION OF BANKS
Despite of scheme of social control there was no significant reorientation of

lending activities of banks towards meeting the requirements of priority sector like
agriculture. This resulted in nationalized of 14 major commercial banks with
individual deposits exceeding Rs.50 crores in July 1969.
The major objective of nationalization were
Reduction in concentration of economic power in hands of few.

Expansion of credit to priority areas, which were hitherto neglected like
agriculture, small- scale industries and self employed people.
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Elimination of the use of
bank credit for speculative and unproductive purpose.
To provide a professional bend to bank management and encourage upcoming
entrepreneurs.
At the time of nationalization, the 14 major banks had a paid up capital of Rs.
28.50 crores, advances Rs.1813 crores and 4134 branches. In other words the
nationalized banks accounted for 80% of branches, 83% of deposits and 84% of
advances of the whole banking system.
The Banks nationalized in 1969 were-
1. Allahabad Bank 8. Indian Bank

2. Andhra Bank 9. Indian Overseas
Bank
3. Bank of Baroda 10. Punjab National
Bank
4. Bank of India 11. United
Commercial Bank
5. Canara Bank 12. Union Bank of
India
6. Central Bank of India 13. Syndicate Bank
7. Dena bank 14. Bank of
Maharashtra
SECOND NATIONALIZATION
In order to move effectively, meet the growth development needs of the

economy and to promote welfare of the people on the large scale six more commercial
banks with demand and time liabilities (deposits) with 200 crores were nationalized in
April 1980.With the second nationalization, The number of public sector banks
increased to 28 (1st nationalization- 14 banks, 2nd nationalization- 6 banks and SBI and
its associate banks).
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Over the years with the
directional change that has occurred in the banking system and the fact that the banks
are responding favorably by evolving new strategies and innovative ideas the credit
structure of the country has become strong and steady. Recognizing the fact that the
banks are vital catalytic agents of growth that provide the basic input of credit, new
programs with the social orientation have been designed with a view to assist the
society.
The name of six banks that were nationalized is shown under:
1. Corporation Bank
2. Oriental Bank of Commerce
3. Punjab & Sind Bank
4. Vijaya Bank
5. Andhra Bank
6. New Bank of India
After the nationalization of major banks the position altered rapidly and the flow
of credit to the rural areas increased considerably. Along with quantitative expansion
of branch network, there were qualitative improvements in the lending practices of
banks. The phenomenal change in the leading practices can be termed as a
transformation from class banking to mass banking. In fact the broader national
objectives of eradication of poverty, unemployment and growth with social justice
have shaped the formulation of various directives/scheme.
Banking in India
Central bank Reserve Bank of India

Nationalized banks Allahabad Bank Andhra Bank Bank of
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Baroda
Bank of India Bank of Maharashtra
Canara Bank Central Bank of India
Corporation Bank Dena Bank Indian
Bank Indian Overseas Bank Oriental
Bank of Commerce Punjab & Sind Bank
Punjab National Bank Syndicate Bank
Union Bank of India United Bank of
India UCO Bank Vijaya Bank
Axis Bank Bank of Rajasthan Bharat
Overseas Bank Catholic Syrian Bank
City Union Bank Development Credit
Bank Dhanalakshmi Bank Federal Bank
HDFC Bank ICICI Bank Indus land
Private banks Bank ING Vysya Bank Jammu &
Kashmir Bank Karnataka Bank Limited
Kotak Mahindra Bank Lakshmi Vilas
Bank Ratnakar Bank SBI Commercial and
International Bank South Indian Bank
Tamilnad Mercantile Bank YES Bank
Citibank HSBC Standard Chartered

Foreign banks
Deutsche Bank
Regional banks South Malabar Gramin Bank
Services National Electronic Fund Transfer (NEFT)
INTRODUCTION TO BANK OF BARODA
Bank of Baroda is a public sector bank established on July 20, 1908. It is one
of the largest banks in India and known as Indias International bank. A network of
CBS branches, offices and ATMs. Bank of Baroda offers wide range of banking
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products and financial
services to corporate and retail customers through a variety of delivery channels and
through its subsidiaries and affiliates in the area of investment banking, credit cards
and assets management, in its international expansion. Bank of Baroda followed the
Indian Diaspora, and especially that of the Gujrates. The bank has received RBI
approval to open various offices in the overseas territory. Its products includes loans,
Credit cards, Savings, Investment vehicles etc. The Corporate office is situated in
Mumbai. Its shares are listed in BSE and NSE.
Backed by the great vision of the founding father, Maharaja Sayajirao

Gaekwad III, Bank has a rich heritage of many flagship achievements, pioneering
endeavors and an undisputedly strong place in the Indian Banking industry today. The
Bank of Baroda has seen many ups and downs over a period of 100 years but stood
undaunted to surmount all hurdles, coming out with flying colors and reinforcing its
strong fundamentals. The world was convinced time and again that this is the bank
with impregnable foundation and immense potential to forge ahead to contribute to
the nations economic growth.
BRIEF HISTORY
Bank of Baroda has a long, eventful and glorious history of 100 years. Sir
Maharaja Sayajirao Gaekwad III founded the Bank.
The Bank made a humble beginning in 1908 in a small building in Baroda. On

20thJuly 1908. Bank of Baroda Limited was registered under the Baroda Companies
Act of 1897, with a paid up capital of Rs. 20 lacs and Shri Vithaldas Damodar
Thackeray as the first Chairman.
In 1918, the Bank crossed the state frontiers by setting up Mumbai Main
Office. In the year 1935, Bank became a scheduled Bank. RBI included the Bank in
second schedule of RBI and brought under direct control of RBI.
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At the time of
Independence in 1947, Bank of Baroda was a regional bank with 48 branches and at
the time of Nationalization in 1969 Bank of Baroda had 433 branches out of which
411 were Domestic and 22 were International.
Nine banks have merged with Bank of Baroda during its journey so far:
Hind Bank(1958)
New Citizen Bank of India (1961)
Surat Banking Corporation (1963)
Tamil Nadu Central Bank of India (1964)
Umbergaon Peoples Bank (1964)

Traders Bank Limited (1988)
Bareilly Corporation Ltd (1999)
Benares State Bank Ltd (2002)
South Gujarat Local Area Bank Ltd (2004)
NEW INITIATIVES OF BANK OF BARODA
In the pursuit of becoming a multi-specialist bank, the bank took a slew of business
oriented and customer-centric initiatives. The spree of CBS rollouts covering over
many branches in India and overseas, and expansion of ATM network. The bank
launched biometric ATMs and took many other technology driven initiatives such as
online payment of direct taxes, Baroda easy pay and online Railway booking facility.
The Bank believed that, in tune with the spirit of multi-specialist banking, the
product offerings should largely cater to the varied life cycle and life style needs of
different customer groups. In this backdrop a number of new assets and liability
products were launched. Adding further to the stream of new wealth management
products, the Bank entered into tie-up arrangements with India Info line Ltd. for
offering to its customers online e-trading facility in equity and derivatives, and with a
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few more global assets
management companies for distribution of mutual fund products. Fully aware of its
social role, the Bank contributed materially to the cause of the rural development of
the country in terms of major initiatives taken in rural and agricultural banking. The
Bank identified 500 villages for 100% financial inclusion and adopted many rural
areas for their integrated and over all development.
BANKS PROFILE
Bank of Baroda (BOB), Indias third largest bank and prominent among the
global top 200 banks, It has a centurys financial experience backing it. With an
expansion in global business level by 30% to Rs 3, 36,383 crores, the bank has a
network of many branches, offices, and ATMs. Today Bank of Baroda has
international presence across the continents, with a network of 74 offices in 25
countries, including branches of the bank, its subsidiaries and the representative
offices. The bank also has a joint venture in Zambia with 9 branches. The banks
international operations today contribute around 20% to its global business and well
as 30% to its net profits. Growing its presence across new geographies and
strengthening its equity in existing markets, Bank of Baroda is on the path to establish
itself round the clock around the globe. The bank is exploring out of the box means
to identify novel ways to tailor its growing repertoire of products and services to meet
segment- specific requirements across geographies. Automation-led process and cost
optimization, orchestration of the offices network and greater attention to compliance
with global regulations are aggressively being focused to help the bank achieve its
ambitious goals. Bank of Baroda, gearing to leverage the opportunities that the flat
world presents and nimbly skirting its threats, is charting a coherent strategy to not
just cope but break path and emerge with the winning edge, in the changing global
business scenario.
BOARD OF DIRECTORS
Name Designation
1. Mr. M.D. Mallya Chairman & Managing Director
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2.Mr. Rajiv Kumar Bakshi Executive Director
3. Mr. N. S. Srinath Executive Director
4. Mr. A. Somasundaram Director
5. Mr.Masarrat Shahid Director
6. Mr.Ranjit Kumar Chatterjee Director
7. Mr. Alok Nigam Director
8. Mr. Ajay Mathur Non official part time Director
9. Mr. Moulin A. Vaishnav Director
10.Dr. Atul Agarwal Director
11. Dr. Dharmendra Bhandari Director
12. Dr.Deepak Bhaskar Director

Pathak
BANKS CORPORATE GOALS & STRATEGIES:
To maximize quality growth and profit through enhanced customer

orientation with prudent risk and liquidity management policies and practices in our
endeavor to consolidate Banks financial strength
MISSION STATEMENT:
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Our new logo is a unique representation of a universal symbol. It comprises dual B
letterforms that hold the rays of the rising sun. They call this the Baroda Sun. The sun is
an excellent representation of what our bank stands for. It is the single most powerful
source of light and energy its far reaching rays dispel darkness to illuminate everything
they touch. At Bank of Baroda, They seek to be the sources that will help all our
stakeholders realize their goals. To their customers, They seek to be a one-stop, reliable
partner who will help them address different financial needs. To our employees, They
offer rewarding careers and to their investors and business partners, maximum return on
their investment. The single-color, compelling vermillion palette has been carefully
chosen, for its distinctiveness.
They also recognize that their bank is characterized by diversity. Their network of
branches spans geographical and cultural boundaries and rural-urban divides. Their
customers come from a wide spectrum of industries and backgrounds. The Baroda Sun is
a fitting face for their brand because it is a universal symbol of dynamism and optimism
it is meaningful for their many audiences and easily decoded by all.
Their new corporate brand identity is much more than a cosmetic change. It is a signal
that they recognize and are prepared for new business paradigms in a globalised world.
At the same time, they will always stay in touch with their heritage and enduring
relationships on which their bank is founded. By adopting a symbol as simple and
powerful as the Baroda Sun, They hope to communicate both.
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International Presence- Along
with a huge network of its branches spread across India, Bank of Baroda has its overseas
branches located in 14 other countries, which include Bahamas, Bahrain, Belgium, China,
Fiji Islands, Hong Kong, Mauritius, Republic of South Africa, Seychelles, Singapore,
Sultanate of Oman, United Arab Emirates, United Kingdom and United States of America.
Apart from it, the bank has established its subsidiaries in 7 countries viz. Botswana,
Ghana, Guyana, Kenya, Tanzania, Trinidad & Tobago and Uganda, and its representative
offices in 3 countries which are Australia, Malaysia and Thailand.
Business & Financial Metrics
Retail Business continued to be one of the thrust areas for achieving business growth
during FY10. In order to achieve the sustained growth of assets/ liabilities, the Bank had
improved and customized several retail lending products.
Retail Loan outstanding as on 31st March 2010 was Rs 24,247.71 crore as against the
level of Rs 19,627.55 crore as on 31st March, 2009. A growth rate of 23.54% (Rs 4,620.16
crore) was registered during FY10 as against the growth rate of 16.19% (Rs 2,723.35
crore) posted during FY09. The amount of Non Performing Assets as on 31st March, 2010
under the Retail Loan segment is Rs 511.77 crore (2.11%) as against the level of Rs
487.25 crore (2.48%) as on 31st March 2009 and Rs 507.72 crore (3.01%) as on 31st
March 2008
Bank of Baroda has announced its audited results for the fourth quarter of 2009-10 (or Q4,
FY10) and for the entire year 2009-10 or FY10 (April-March), following the approval of
its Board of Directors on April 28, 2010
RESULTS AT GLANCE
Results for Q4, 2009-10 (January-March)
Q4 (2009-10) Q4(2008-09) Change (in %)
Total Income# 5,120.73 4,992.41 2.57
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4,353.84 5.20
Interest Income 4,138.78
Other Income# 766.89 853.63 -10.16
Total Expenses 3,573.40 3,687.93 -3.11
Interest Expenses 2,608.89 2,667.99 -2.22
Operating Expenses 964.51 1,019.94 -5.43
Operating Profit# 1,547.33 1,304.48 18.62
Total Provisions (incl. Tax 722.50 551.79 30.94
prov.)
Net Profit 906.28 752.69 20.41
Results for 2009-10 (April-March)
Apr-Mar(2009-10) Apr-Mar(2008-09) Change (in %)
Total Income# 19,423.25 17,754.22 9.40

Interest Income 16,698.34 15,091.58 10.65
Other Income# 2,724.91 2,662.64 2.34
Interest Expenses 10,758.86 9,968.17 7.93
Operating 3,810.58 3,576.06 6.56
Expenses
Operating Profit# 4,853.81 4,209.99 15.29
Total Provisions 1,876.93 2,077.80 -9.673
(inc. Tax prov.)
Net Profit 3,058.33 2,227.20 37.32
# Excludes profit on sale of investments of Rs.81.45 crore for the FY10 due to sale of
6.5% holding in UTI AMC Co.Ltd & UTI Trustee Co.Pvt Ltd and Rs 95.01 crore for the
year FY09 due to winding up/dilution of the Banks holding in its Hong Kong subsidiary.
BANKS VISION:
To double its global business size within next 2-3 years
To regain the leadership spot among the public sector Banks in India.
To acquire at least 2 million customers every year.
To double the retail assets and fee based income.
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To bring at least 300 to 400
of the top 500 Corporate in the Banks Loan book.
To transform the top 500 branches into best of the breed sale and service
centers, through improved ambience, processes, people and technology.
To pursue best global practices for delivering best value to the customers.
OTHER GOALS:
To increase advances by 24% and to record an incremental rise of Rs. 20705

crore.
To affect recoveries of at least Rs. 350 crore in the prudentially written-off

(PWO) accounts.
To increase the customer- product ratio through aggressive cross selling and
up-selling of banks products, as well as third party products, to at least 1:2.
To improve usage of ATMs to reach at least 300 transactions per ATM per day.
To increase Priority Sector Credit by 22%.
To increase advances to SME by 21%.
To increase outstanding Retail Credit by 20% i.e. by Rs. 3300 crore.
To improve Return on Average Assets (ROAA) to 1.25%.
To generate fee income of Rs. 100 crore from Wealth Management Services.
To bring down gross NPA to less than 2% and net NPA to less than 0.50%.
To increase gross profit of the bank (domestic operations) by 40% and net
profit by 50 %.
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To increase the
customer base by at least 2.5 million.
RETAIL BANKING: AN OVERVIEW
Retail banking refers to the banking in which banks undergo transactions

directly with consumers, rather than corporations or other banks. It can also be
defined as typical mass market banking in which individual customers are local
branches of large commercial banks. Services include Savings and checking account,
Mortgages, Personal loans, Debit card, Credit card.
Retail banking aims to be the one shop for as many financial services as
possible on behalf of retail clients. Some retail banks have even made a push into
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investment services as wealth
management, brokerage accounts, private banking and retirement planning. While
some of these ancillary services are outsourced to third parties (often for regulatory
reasons), they often intervene with retail core banking accounts like checking and
saving to allow for easier transfers and maintenance.
Retail banking is, however quite broad in nature. It refers to dealings with
commercial banks with individual customers, both on assets and liability side of the
balance sheet. On the liabilities side, it includes fixed/current, savings accounts and
on assets side the most important products offered by the banks are mortgages and
loans (personal, housing, auto education) related ancillary services include credit
cards and depositor 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).
Multiple customer groups (consumer, small business, corporate).
Across the globe, retail lending has been the most spectacular innovation in
the commercial banking sector in recent years. Retail loans comprise consumer credit
for specific purpose and credit for general use. The surge in credit to the retail
segment across developing as well as developed economies has occurred due to
commercial bank shifting from traditional banking activities to a broad based lending
portfolio.
RETAIL BANKING IN INDIA
Retail Banking in India is not a phenomenon. It has always been prevalent in India in
various forms. For the last few years it has become synonymous with main stream
banking for many banks.
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Within the retail
segment, the housing loans, which formed nearly 48% of total retail portfolio had the
least gross asset impairment at 1.9 % while consumer durables segment had the
highest gross asset impairment at 6.3%.While retail banking has always been
prevalent in various forms (for instance, co-operatives) for last few years it has
become synonymous with main stream banking for banks.
While new generation private sector banks (ICICI bank, accounting for nearly
20% of domestic retail growth) have invested in creating and sustaining a retail brand,
their public sector counter parts too, have, have not lagged behind. Leveraging their
vast branch and outreach, public sector banks like SBI whose retail segment
constitutes 20% of the total advances have aggressively forayed to garner a larger
slice of retail pie. However, There are various corners as to whether retail lending has
emerged as an efficient channel for improving access to credit and promoting broad
based development. At present retail lending is largely confined to urban and
metropolitan regions. Expressing concerns about the high growth witnessed in the
consumer credit segments the Reserve Bank has, as a temporary measure, put in place
risk containment measures and increased the risk weight from 100% to 125%
in case of consumer credit including personal loans and credit cards.
The typical products offered in the retail baking segment are housing loans,
consumption loans for purchase of durables, auto loans, credit cards and educational
loans. The loans are marked under attractive brand names to differentiate the products
offered by banks. The loans are marketed under attractive brand names to differentiate
the products offered by banks. The loan values typically range between Rs. 20,000 to
Rs. 1.00 lacs. The loans are generally for duration of five to seven years with housing
loan granted for a longer duration of 15 years.
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An important
characteristic of retail banking assets in the comparatively low loan values. In order to
appraise such loans, banks are using more refined credit assessment methods. These
include credit scoring models and income surrogate models. In addition, banks are
also using data sharing as a means of improving the selection of customers and
reduction of credit losses. In the absence of fully fledged Credit Bureaus, The
negative data sharing extends to sharing of data on hot listed credit cards besides
using banks own internal black lists.
After all retail loans constitute less than 7% of GDP in India vis--vis about 35% for
other Asian economies- South Korea(55%), Taiwan(52%), Malaysia(33%), and
Thailand(18%). As retail banking in India is still growing from modest base, there is
likelihood that the growth number seem to get somewhat exaggerated. One thus has to
exercise caution in interpreting the growth of retail banking in India.
RETAIL LOAN
Before discussing about retail loan, we should clear the meaning of a loan.
What is a Loan?
A Loan is a type of debt. It can be described as the act of giving money,

property or other material goods to another party in exchange for future repayment of
the principal amount along with interest or other finance charges.
A borrower may be subject to certain restrictions known as loans covenants

under the terms of loan. The terms of standardized loan are formally presented
(usually in writing) to each party in transaction before any money or property changes
hands. If any lender requires any collateral, this will be stipulated in the loan
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documents as well. Most of the
loans also have legal stipulations regarding the maximum amount of interest that can
be charged, as well other covenants such as length of time before repayment is
required. Loans can come from individuals, corporations, financials and governments.
They are a way to grow the overall money supply in an economy as well as open
competition, introduce new products and expand business operations. Loans are the
primary source of revenue for many financial institutions such as banks, as well as
some retailers through the use of credit facilities.
Types of Loans
Secured Loans
A secured loan is loan in which the borrower pledges some asset (e.g. a car or
property) as collateral for the loan.
A mortgage is a very common type of debt instrument, used by many individuals to

purchase housing, sin this arrangement, the money is used to purchase the property.
The financial institution, however, is given security a lien on the title of the house-
until the mortgage is paid off in full. If the borrower defaults on the loan, the bank
would have the legal right to repossess the house and sell it, to recover sums owing to
it.
Unsecured Loans
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Unsecured loans are
monetary loans that are not secured against the borrowers assets. Or we can say that
an unsecured loan is a loan that is not backed by collateral. Also known as a signature
or personal loan.
These may be available from financial institutions under many different guises or
marketing packages:
Credit card debt.

Personal loan.
Bank Overdraft.
Credit facilities or lines of credit.
Corporate Bonds
The Interest rates applicable to different forms may vary depending on the lender and
the borrower. These may or may not be regulated by law. Now after we have
understood the real meaning of a loan, lets proceed towards the meaning of retail
loan.
What is Retail Loan?
Retail loans are the loans which offered to individual customers to fulfill their
personal needs.
The key components of retail loan portfolio are:
Housing Loan
Education Loan
Auto Loan
Traders Loan
Doctors Loan
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RETAIL LOAN FACTORY
THE BEGINING
With the advent of economic reforms in the country, retail lending has
emerged as one of the key thrust area of banking. Almost all banks are repositioning
themselves as retail banks. Housing is a growing and major sector under retail
segment, in which every bank is trying to increase its share as per its ability and
competitiveness in delivering timely credit. Bank of Baroda which has been making
rapid strides to emerge as a truly customer- centric and technology enabled initiatives
is fast extending its foot prints in service of retail customers. Through a business
transformation program called Project Parivartan, which means change, the bank is
endeavoring to reposition itself as a Sales and Service Organization.
GENESIS
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By virtue of large
amount per account and relatively higher demand, housing loans have grown speedily
and their proportion in the total retail loans has been around 15% at the industry level.
However, it has been observed that processing of housing loan proposals takes very
long time. Diagnostically speaking, one such reason is the inability of the branch to
handle all aspect of loans starting with marketing/mobilizing loan proposals to finally
disbursing and servicing it thereafter. With multifarious functions, handling large
number of accounts poses difficulty to branches and often results in longer turnaround
time of proposals, which irritates the customer and ultimately may mean loss of
business to the bank.Therefore a need was felt for setting up a structure, which may
help in establishing standardized appraisal and evaluation techniques and adoption of
risk management practices. Specialization in due diligence functions will help the
bank in preventing occurrence of frauds and commission of irregularities. Speedy
delivery of decisions will automatically enhance customer satisfaction and customer
services standers.
Banks above concern has given evolution to Retail Loan Factory, a unique
customer centric initiative being taken under Project Parivartan. Through Retail Loan
Factories, the bank is aiming to deliver a global standard of service through a
committed team of employees, by using simplified processes that are fast, accurate
and efficient and are supported by state of the art technology. The retail loan factory
comprises of two complementary units i.e. Sales wing and Centralized Processing
Cell (CPC).
Page 28
Loan application and appraisal flow
Incoming application
File Creation & Order Data Entry Operators

Processing
Advocate/value
Field Officer/ order for
verification report
inspection
Page 29
Credit Officer Completion of Loan file
Document preparation Files for Storage
Courier stamped
Fax Sanction Letter
documents
Branch Network
WORKFLOW OF CPC
RETAIL LENDING IS BLESSING OR CURSE FOR THE BANKS?
Retail lending is a boon for the banks due to the following facts:-
It gives higher return.

It is easy to sanction & disburse. Since no expertise is required.
Chances of going the account is are remote.
Due to diversified and large number of account with smaller loan amount,
credit risk is not very high.
Follow up is easy and inexpensive.
However retail lending may be proving to be bane if the banks dont observe
discipline & precaution in appraising the proposals and also because of lack of follow
Page 30
up. So suggestions for
follow up in retail lending are as following.
Before sanctioning of any loan under the retail lending scheme, branch officer
should invariably visit the residence or the work place of the applicant to
avoid personification / fraud.
Repaying capacity is the most important factor in these types of schemes. So
before lending the loan repaying capacity should be checked. Since in most of
the cases the money is lend for unproductive purpose cant repay any amount.
Contribution of the applicant should be adequate.
Securities in the account should be properly valued and adequate to cover the
loan amount.
Branch manager should have list of telephone number of the borrowers, so

that the borrower may be contacted in case of any default in paying the loan
installment.
The last but not the least is the quick reminder to the borrower whether on
phone, by letter or by personal visit in case term loan installments are not
received from them.
So from the firms view that if above points are kept in mind before appraising any
proposal of retail lending , then retail lending can be proved to be most profitable
business for the bank.
Page 31
RETAIL LENDING PRODUCTS
GENERAL PROVISIONS:
1-KNOW YOUR CUSTOMER
KYC guidelines for advances should be scrupulously followed.
2-AGE:
Principal borrower must have attained, except in case of education loan, age of
21 years. However, a co-borrower having age of 18 years and above may be
accepted.
The present age of the borrower plus tenure of the loan should not exceed the
cut off age at which regular cash flow ceases. Therefore, in case of salaried
persons, the date of superannuation/retirement may be taken as cut- off date,
whereas, for self- employed, it may be taken as 65 years except loan to
pensioners
3-EMPLOYMENT/INCOME STATUS:
Bank should lend to the applicants who are employed or self employed and
have stable source of income except where specifically approved under the
schemes viz. Loan to pensioners/defense pensioners and education loans to
students.
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Maximum eligible
amount of loan under any retail product is computed/ determined on the basis
of present/ current income.
4-REPAYING CAPACITY:
Any loan should be considered according to debt repaying capacity of the

borrower. It is presumed that an individual will require 40% of his gross
income for his/her subsistence needs. Therefore total deduction including
repayments towards existing and EMI of proposed loan should not be more
than 60% of income of the applicant.
5-NATURE & CONDITION OF THE PROPERTY:
As per the Act, in most of the states, agricultural land cannot be

charged/mortgaged for securing debts other than agricultural purposes.
Therefore, agricultural land should not be taken as security in retail loans,

except where ever permitted under the Act of respective State Government.
A property under litigation with the court of law/dispute with the local
authorities/ family dispute should not be considered for finance or taken as
security.
The branch should not lend to an applicant against the existing property, which
is in poor condition. The branches should also refrain from considering an
advance against the property occupied by tenants except as specifically
provided in the concerned products.
6-CONDUCT OF THE ACCOUNT & DEALINGS OF THE APPLICANT:
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If the applicant is
dealing with our bank/ branch, conduct of the account for a minimum period
of 6 months and repayment of existing loans should be pursued and satisfy
about satisfactory conduct of the accounts.
7-CREDIT RATING:
Credit rating has been stipulated in the following Retail Products, hence, while
considering any proposal relating to these products, credit rating is a relative
module should be carried out and proposal be considered if applicant secures
minimum C category except Education loan proposals.
8-DISCRETIONARY LENDING POWERS:
All retail loans to public may be considered by sanctioning authority up to the

amount secured/ unsecured advances normal discretionary lending powers as
his/her substantive rank.
Staff Related a/cs Branch managers/ Other sanctioning authorities may

consider all retail loans to the relatives of staff members, other relatives of
senior officers i.e. officers in grade of scale IV and above, as per normal
lending discretionary powers of their substantive rank.
As per extent guidelines, the staff members can avail following loans only
under public schemes.
Baroda Home Loan.

Vehicle Loans i.e. Car & Two wheeler.
Baroda Advance against Securities.
Baroda Education Loan (Till son/ daughter of the staff is minor)
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9-INSPECTION OF SECURITIES:
Following periodicity should be followed by the branches for inspection of

securities in respect of Retail Loans:
Baroda Housing Loan: At the time of every disbursement in case of

construction purchase of the house, thereafter once in three years, is the
account is regular.
Baroda Advance Against Property: Once in two years.
Baroda two Wheelers/ Car Loans: Yearly.
Baroda Traders Loan: Yearly in March.
Baroda Professional Loan: Yearly in March.
10-VALUATION OF IMMOVABLE PROPERTY:
Value of property to be financed/ mortgaged should be assessed at prevailing

market rates; overvaluation of the property should be avoided.
Condition of Valuation of properties once in three years has been waived in

respect of those Retail Loan a/cs which are regular and classified as Standard
except cases mentioned here under.
Page 35
Valuation of
immovable properties mortgaged in respect of retail products extended for
professional/ Business needs i.e. Baroda Traders Loan, Baroda loan to
Doctors, Baroda professional Loan should be got done once in every three
years.
Properties charged to Bank in Overdraft facility under any Retail Product

should also be got valued once in three years.
Valuation in NPA a/cs will be got done once in three years as per existing
guidelines.
Subsequent valuation should not be entrusted to the same valuer, who had
valued the property earlier.
11- RECOVERY:
Except where advance is self liquidating and repayment is fixed or deduction

of installments is assured by employer at source, the branches should
invariably obtain PDCs in all cases to ensure regular recovery in retail loans.
12-DEVIATIONS FROM THE NORMS OF ANY PRODUCT:
In case of any bulk business or any proposal of existing valued customer

warrants any deviation from the norms stipulated in any scheme, such cases
should be referred to competent authority.
On the approval of deviations by competent authority, credit decision will be

taken as per lending discretionary power of sanctioning loan.
13-PRIORITY SECTOR CLASSIFICATION:
In terms of guidelines issued by RBI, following retail loans will be classified and
categorized as priority sector advance.
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Housing Loan:-
Loans up to Rs. 20 lacs irrespective of locations, for construction of

houses.
Loans for repairs and renovations up to Rs1 lac in rural and semi urban
areas and up to Rs 2 lacs in urban areas.
Education Loans: - All loans granted to individuals for educational purposes.
Traders Loan: - Credit facilities granted to individuals for educational

purposes.
Loan to Doctors:-
Credit limits up to 10 lacs of which not more than Rs. 2 lacs should be
working capital requirement.
Credit limits up to 15 lacs with a sub ceiling of Rs. 3 lacs for working
capital requirement.
Loans granted to business enterprises for purchase of equipments for their
business up to Rs. 20 lacs.
Professional Loan:-
Credit limit up to Rs.10 lacs of which not more than Rs. 2 lacs should be
for working capital requirement.
Credit limits up to Rs.15 lacs with a sub ceiling of Rs.3 lacs for working
capital requirement.
Loans granted to business enterprises for purchase of equipments for their
business up to Rs.20 lacs.
14-OTHER PROVISIONS:
Branches should ensure not to sanction more than one retail loan on the same
property except where ever specifically allowed in any retail product.
The terms and conditions should be advised to the borrower / guarantor, if any
in writing and his/their acceptance should be obtained.
If there is more than one branch at the centre, the branch should ensure before
considering the loan application, that the applicant is not enjoying any loan
Page 37
from any other branch
at the centre with the help of Borrower wise search utility programme based
on ASCROM data.
The branches sanctioning authorities should access CIBIL report to assess the
present borrowing of the applicant and conduct of repayment.
Personal Accidental Insurance- Bank as a value preposition provides Personal

Accidental cum Property insurance in some retail products. The liability of
insurance company in such cases is restricted to the following:
Amount outstanding in concerned loan accounts on the date of eventuality.

For this purpose amount outstanding will be determined on the basis of
repayment schedule (i.e. excluding default in repayment).
Actual loss assured(in case of property)
Sum insured.
15-NORMAL DOCUMENTS TO BE OBTAINED IN ALL CASES:
For Salaried Individuals:
Passport size photograph
PAN card.
Proof of residence
Salary certificate/3 salary slips from employer of which one should be of

latest month.
Form no. 16.of three years.
For Self-Employed & Professional:
Passport size photograph.
PAN card.
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Proof of office
Address, which may include Shop and Establishment Certificate/Lease
Deed/ Telephone bills etc.
IT returns and financial statements for the last three/ two financial years, as
specifically provided in the product.
Copy of registration/License/Govt. approval required to pursue the

profession if any.
Proof of qualification, where ever required.
16- OTHER PROVISION:
Value of property to be financed/ mortgaged should be assessed at

prevailing market rates. Overvaluation of property should be avoided.
Branches should ensure that borrowers have not availed more than one
loan on the same property except as specifically.
The terms and conditions should be advised to the borrower/guarantor, if

any, in writing and his/their acceptance should be obtained.
If there is more than one branch at the centre , the branch should ensure
before considering the loan application, that applicant is not enjoying any
loan from any other branch at centre with help of Borrower wise search
utility programme based on ASCROM data.
The branches/ sanctioning authorities should access CIBIL report to assess

the present borrowing of the applicant and conduct of repayment.
Page 39
Retail loan products: A Description
Previous Products Existing Products
1.Baroda Home Loan Baroda Home Loan

2.Baroda Home Improvement Loan
3.Baroda Home Loan to NRIs/PIOs
4.Baroda AAA to residents/ NRIs
5.Baroda Education Loan Baroda Education Loan

6.Baroda loan for Career Development
7.Baroda loan for Skill development of
Construction workers
8.Baroda Car Loan Baroda Auto Loan

9.Baroda Car Loan to HNIs/Corporate
10.Baroda Loan for two Wheelers
11.Baroda advance against property Baroda Mortgage Loan

12.Baroda advance against property to NRIs
13.Baroda loan to Professionals
14.Baroda Marriage Loan
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15. Baroda Personal Loan Baroda
16. Baroda Vaibhav Laxmi Personal Loan
17.Baroda loan to Pensioners
18.Baroda loan to defence Pensioners.
19.Baroda loan for Earnest money deposit
20.Baroda loan for consumer durables
21.Baroda loan for Laptop and PCs
22.Baroda Desh Videsh Yatra loan
23.Baroda Ashray Baroda Ashray

(Reverse Mortgage Loan) (Reverse Mortgage Loan)
24.Baroda loan to Doctors Baroda loan to Doctors
25.Baroda Traders loan Baroda Traders loan
26.Baroda Loan against Security Baroda Loan against Security
It is clear from the above that the existing 26 products are realigned into 9 products.
For the existing accounts it may continue under its existing classification but in case
of fresh loans, it should be sanctioned under any of 9 realigned products only
depending upon security and purpose.
BARODA HOME LOAN
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PURPOSE:
Purchasing of new residential house /flat and construction of new dwelling

unit
Purchase of old dwelling unit(not more than 25 years old).Beyond 25 years

regional head permission required subject to ascertaining structural
soundness/residual life of the building(5 yrs more than the repayment period)
Purchase of plot of land, subject to construction thereon 3 years
Takeover of loan already availed from any other bank /HFCs and/or other
sources, provide documentary evidences are produced.
Reimbursement for houses/ flats constructed / purchased (not prior to 24

months) from own sources.
Loan for purchase /construction of second house can be considered
ELIGIBILITY:
All individuals singly or jointly.
Principal applicant must be employed minimum for three (03) years.
Minimum Age Principal Borrower 21 yrs and Co-borrower - 18 yrs

(Salaried Person - repayment period shouldnt be beyond retirement age and
for others 65years).
LIMIT:
The maximum limit is Rs 100 lacs. (Branches have to seek approval from
higher authority, if loan exceeds Rs 50 lacs).
Page 42
INCOME CRITERIA:
Monthly Income Modified Criteria
Up to Rs. 20,000/- 36 times of monthly income
Rs.20,000- Rs1 lac 48 times of monthly income
More than Rs. 1 lac 54 times of monthly income
MARGIN:
Amount of loan Purpose Margin
Up to Purchase of plot 20%

Rs.20000/-
House/flat already constructed from own 25%

resources
All other cases 20%
Above Purchase of plot 20%

Rs.20,000/-
House/flat already constructed from own 20%

resources
All other cases 15%
INTEREST RATE: BPLR-12%
Floating Rate
Tenure <30 lacs >30 lacs

Up to 5 years 3.50% below BPLR 2.75%below BPLR
i.e. 8.50% i.e. 9.25%
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5-15 years 3.25%below
BPLR 2.50%below BPLR
i.e. 8.75% i.e. 9.50%
15-25 years 3.00%below BPLR 2.25%below BPLR
i.e. 9.00% i.e. 9.75%
Fixed Rate
Tenure <30 lacs >30 lacs

Up to 5 years 2.50% below BPLR 1.75% below BPLR
i.e. 9.50% i.e. 10.25%
5-10 years 2.25% below BPLR 1.50% below BPLR
i.e. 9.75% i.e. 10.50%
10-15 years 2.00% below BPLR 1.25% below BPLR
i.e. 10.00% i.e. 10.75%
REPAYMENT:
Maximum 25 years ( including moratorium period of 18 months )
Age of the borrower plus repayment period should not exceed :
Retirement age in case of salaried
65 years in case of others
The repayment period in case of salaried persons can be extended up to 65

years in case drawing pension subject to condition that 40% of the pension is
sufficient to pay EMI.
Page 44
Interest charged during
the pre EMI period is to be recovered as and when debited, before
commencement of recovery by EMI
SECURITY:
Mortgage of the property constructed/purchased. If mortgage is not available,
branch can accept, at its discretion, security of adequate value in the form of
collateral as may be deemed adequate include third party from guarantee from
individual.
Create equitable mortgage by obtaining following documents duly supported

with the advocates search report and opinion of titles of the land as also on the
agreement to sale.
Duly stamped and registered original agreement to sale executed by

builder in favor of borrower.
Original receipt in respect of registration of Agreement to sell
Copy of the map of the building duly approved by the appropriate

authority.
NOC from the builder for creating mortgage and noting of Banks lien if
the building is under construction.
Share certificate, if society is formed, duly supported with NOC from the
society for creation of mortgage and noting of our lien in societys record.
PROCESSING CHARGES:
For Loan up to Rs.20 lacs 0.35 % on loan amount + Service tax
For loan above Rs.20 lacs 0.40 % on loan amount (Max Rs.15000.00
+Service tax )
Page 45
Normal processing
charges for take over of loans from other banks / financial institutions @ 0.10
% - maximum Rs.5000/- (incl. Documentation & Post Inspection charges)
PRECLOSURE CHARGES:
No pre closure charges for part / full payment from own resources.
Loan sanctioned on or after 01.12.02 @ 0.50 % of balance outstanding each

year of year of the residual period of loan subject to maximum of 2 %.
HOME IMPROVEMENT LOAN
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 (complementary for first year) will be issued to borrowers
with loan limit above Rs.2/-lacs.
TERMS & CONDITIONS:
The house should not be older than 25 years. Residual life of the house may be
minimum repayment period plus 5 years to be certified by approved architect /
valuer vis-a-vis total repayment period of the loan.
ELIGIBILITY:
Page 46
All individuals
(resident Indians) singly or jointly owing a dwelling unit in their name/(s).
Age:-
Minimum age 21 years.
Maximum Age of the borrower plus repayment period should not be
beyond retirement age, in case of salaried persons and 65 years in case
of others.
Principal applicant must have consistent and stable source of income
minimum for last three years.
INCOME CRITERIA:
The maximum amount of loan will not exceed the following:

Salaried person - 2 times of gross annual income.
Other than salaried persons i.e. professionals / self-employed / business
persons etc., 3 times of net (average of last three years) annual income
plus depreciation claimed individual capacity (and not the depreciation
claimed by the business unit).
MARGIN:
25% of the Project cost (Project cost will include - estimated cost of
repairing/renovation/extension, cost of furniture/fixtures/furnishing other
gadgets and also the stamp duty payable for criteria of equitable mortgage).
SECURITIES:
Mortgage of the property to be repaired / renovated.
REPAYMENT PERIOD:
Maximum-10-years by Equated Monthly instalments.

Moratorium period maximum-6-months or one month after completion of
repair/renovation work whichever is earlier.
Page 47
SERVICE CHARGES FOR FULL
PREPAYMENT/PREMATURE CLOSURE:
1% on amount prepaid including any such amount prepaid in the last financial
year.
No penalty on part pre-payment.
INTEREST RATE:
1.50% below BPLR i.e. 10.50%
PROCESSING CHARGE:
Baroda Home Improvement Loan-0.35%
HOME LOAN TO NRIs /PIOs
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)
ELIGIBILITY:
Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian

origin (PIOs) holding foreign passport, singly or jointly. For this purpose
Person of Indian Origin means a citizen of any country other than
Bangladesh / Pakistan / Sri Lanka / Afghanistan / China / Iran / Nepal &
Bhutan if -
a. He at any time held Indian passport or
Page 48
b. He or either of his
parents or any of his grandparents was a citizen of India by virtue of
the constitution of India of the Citizenship Act 1955, or
c. The person is a spouse of an Indian citizen or a person referred to in
sub-clause (a) or (b) above.
Must be employed/self-employed or having a business unit and staying abroad
at least for 2 years.
Must have minimum gross annual income equivalent to Rs. Five lacs per
annum.
In case of salaried persons - 48 times of monthly income (average of last 2
years income including incentive, commission, bonus etc.)
For others - 4 times of average (last 2 years) annual income.
AGE:
Minimum age must be 21 years. Age of the borrower plus repayment period
should not be beyond retirement age or 65 years whichever is earlier.
MARGIN:
For purchase of new/ old dwelling unit or Construction of the dwelling unit:
15%.
For purchase of plot: 20%.

For repairs / renovations / extension in existing home: 20% of the project cost.
SECURITY:
Equitable / legal mortgage of the property constructed / purchased or property

to be renovated / repaired etc.
Personal guarantee of spouse / family member, residing in India. In case the
spouse is also residing abroad, personal guarantee of one / two persons
resident in India shall be obtained.
REPAYMENT PERIOD:
Maximum 15 years including moratorium.
Page 49
Payment to be
remitted from abroad through normal banking channels or out of funds in
NRE/ NRO accounts.
Post-dated cheques drawn on NRE/ NRO account of the borrower are to be
obtained.
Close relatives of the borrower in India may also repay the installments of
such loans, interest and other charges, if any, through their bank account
directly to the borrower's loan account.
PART PREPAYMENT / PREMATURE CLOSURE CHARGES:
No pre-payment / fore-closure charges if the amount is partly or fully repaid

from own sources by the borrower/s.
In case of takeover of the account by other Bank / HFCs. - The charges @
0.5% of balance outstanding for each year of the residual period of housing
loan subject to maximum of 2.00%
RATE OF INTEREST:
Fixed Rate option

Repayment Period Up to Rs. 30 Lacs Above Rs. 30 Lacs
Up to 5 years 9.50% 10.25%
Over 5 years & up to 10 9.75% 10.50%
years
Over 10 years & up to 15 10.00% 10.75%
yrs
Floating Rate option
Up to 5 years 3.50% 2.75%
below BPLR i.e. 8.50% below BPLR i.e. 9.25%
Over 5 years up to 3.25% 2.50%
15 years below BPLR i.e. below BPLR i.e. 9.50%
Page 50
8.75%
Over 15 years up to 25 3.00% 2.25%
years below BPLR i.e. 9.00% below BPLR i.e. 9.75%
PROCESSING CHARGES
Loan up to Rs 20 lacs-0.35%
Loan above Rs 20 lacs-0.40%
BARODA EDUCATION LOAN
As we are aware that our Bank was having different products related to Education
Loan.
These Loan Schemes have been realigned for operational convenience under the name
BARODA EDUCATION LOAN as below:
1) Baroda Education Loan (Baroda Vidya / Gyan / Scholar)
2) Baroda Loan for Career Development
3) Baroda Loan for Skill Dev. of Construction Workers.
BARODA VIDYA
Bank of Baroda presents a one of its kind finance option for parents of
students pursuing school education. These loans are available for studies from
Nursery to Senior Secondary School.
No processing & documentation charges.
No Margin.
No security required.
ELIGIBILTY:
Page 51
Should be an Indian
national residing in India.
Student should have secured admission to a recognized school / High school /
Jr. College (including CBSE / ICSE / State Board) for any of the following
courses
1. Stage I: Nursery to V th STD.
2. Stage II: VI th to VIII STD.
3. Stage III: IX th to XII th STD.
COVERAGE OF EXPENSES FOR:
Fee payable to college / school.

Examination / Library / Laboratory Fee.
Fee and other charges payable to hostel.
Purchase of books / equipments / instruments / uniforms.
Personal Computers / Laptops wherever required.

Caution deposit / building fund / refundable deposit supported by institution
bills / receipts.
MAXIMUM LOAN AMOUNT:
Rs 4 Lacs
REPAYMENT PERIOD:
Loan for each yearly sub limit is repayable in 12 equal monthly installments.
First installment to be due 12 months after first disbursement of each year's
loan component.
SECURITY:
No security
In case the loan is given for purchase of computer the same is to be

hypothecated to the bank.
Page 52
RATE OF INTEREST:
1% concession in rate of interest to loans for girl students.

Interest to be serviced as and when applied during moratorium period.
Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/-
lacs.
Amount of Loan Rate of Interest
Up to Rs. 4.00 lacs 2.00% below BPLR i.e.

10.00%.
More than Rs. 4.00 lacs At BPLR i.e. 12.00%.
BARODA GYAN
A loan product specially designed for students pursuing Graduation, Post -

Graduation, Professional & Other courses in India. Bank of Baroda extends a helping
hand to energize your studies and promote education of the youth.
No processing charges.
No Margin on loans up to 4 lacs.
Free Debit Card.
COURSES ELIGIBILITY:
All Graduation courses.

All Post Graduation courses & Doctorate courses.
Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law,
Dental, Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel
Management, Hospital Management, Interior Designing, Architecture, Event
Management, Mass Communication, Fashion Technology, etc.
Computer certificate courses of reputed institutes accredited to Dept. of
Electronics or institutes affiliated to Universities.
Courses like C.A, ICWA, CFA, CS, etc.
Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
Page 53
Regular Degree/
Diploma courses like Aeronautical, pilot training,
shipping etc., approved by Director General of Civil Aviation/shipping.
Other courses leading to diploma / degree etc. conducted by
colleges/universities approved by UGC/Govt./ AICTE/ AIBMS/ ICMR etc.
Courses offered in India by reputed foreign Universities.
Evening courses of institutes approved by
State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.
Courses offered by National Institutes and other reputed private institutions.

The College/Institute must have been approved by the State/Central
Govt./UGC/AICTE, etc.
STUDENT ELIGIBILTY:
Should be Resident Indian.

Secured admission to either of above courses
COVERAGE OF EXPENSES:
Fee payable to college / Institution / University.

Examination / Library / Laboratory Fee.
Fee and other charges payable to hostel.
Purchase of books / equipments / instruments.

Personal Computers / Laptops wherever required.
Caution deposit / building fund / refundable deposit supported by institution
bills / receipts.
Any other expenses required to complete the course - like study tours, project
works, thesis, etc.
MAXIMUM LOAN AMOUNT: Rs.10.00 Lacs.
Page 54
MARGIN:
Above Rs. 4.00 lacs: - 5%

Margin is to be contributed on pro rata basis on year to year basis as and when
disbursements are availed.
REPAYMENT/MORATORIUM PERIOD:
Course period + 1 year or 6 months after getting job, whichever is earlier.
The loan is repayable in 5-7 years after the moratorium period.
SECURITY:
Up to Rs.4 lacs : No security

Above Rs. 4.00 lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable
third
party guarantee along with assignment of future income.
Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
amount along with assignment of future income
RATE OF INTEREST:
Simple interest to be charged at monthly rests during the repayment holiday /

moratorium period.
1% interest concession is provided if interest debited during repayment
holiday is serviced.
1% Concession in rate of interest to loans for girl student.
Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds
Rs.4.00 lacs.
Page 55
10.00%.
BARODA SCHOLAR
Bank of Baroda presents financial assistance to students going abroad for

Professional / Technical studies. The loan offering is designed to empower you with
the financial capability to realise your dreams Achieve your goals. Reach out to the
maximum limits.
COURSES ELIGIBLE:
Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical

Courses offered by reputed Universities overseas.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping
etc. The Institute should be recognized by the competent local aviation /
shipping authority and Director General of Civil Aviation/shipping in India.
STUDENT ELIGIBILTY:
Should be an Indian National.

Secured admission to Professional/Technical Courses at foreign
Universities/Institutions.
COVERAGE OF EXPENSES (for overseas studies):
Admission/Tuition fees to College/University.

Hostel/Mess charges.
Examination/Library/Laboratory fee.
Purchase of books/equipments/instruments.
Caution deposit/building fund/refundable deposit supported by institution
bills/receipts.
One way travel expenses/Passage money.
Purchase of computers if essential for completion of the course.
Page 56
MAXIMUM LOAN AMOUNT: Rs. 20.00 Lacs.
MARGIN: 15%
REPAYMENT /MORATORIUM PERIOD:
Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan is repayable in 5-7 years after the above period.
SECURITY:
Up to Rs.4.00/- lacs : No security

Above Rs. 4.00 lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable
third
party guarantee along with assignment of future income.
Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
amount along with assignment of future income.
RATE OF INTEREST:
Simple interest during repayment holiday/moratorium period.

1% interest concession, if interest debited during the repayment holiday is
serviced.
1% Concession in rate of interest to loans for girl student.
Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lacs.

10.00%.
Page 57
BARODA CAREER
DEVELOPMENT
Gainfully employed persons intend to pursue higher education, vocational courses,

trainings, pilot trainings, skill up gradation, diploma or degree courses offered in
aviation, hospitality and travel management, executive development etc. in India /
abroad.
To help the future management leaders acquire higher specialized managerial skills
and dominate the global arena, Bank of Baroda brings Baroda Career Development, a
unique loan facility for working persons.
ELIGIBILTY OF COURSES:
Graduate, Post Graduate, Diploma, Professional Courses, Specialization

courses offered by reputed Universities/ Institutions (Indian or Overseas),
having assured employment prospects,
Skill up gradation courses offered by various institutes (Indian/Overseas),
having assured employment prospects,
Courses offered by Hospitality Management Institutes for Skill upgrade/Short
course/ Training etc.
Pilot Training Courses, offered by reputed Institutions (Indian or Overseas),
approved by Director General of Civil Aviation (DGCA) /International Civil
Aviation Organization (ICAO).
STUDENT ELIGIBILTY:
Should be an Indian National.

Have secured admission to the course through entrance test / merit based
selection process.
MAXIMUM QUANTUM OF LOAN:
Page 58
Need based finance
subject to repaying capacity of applicant, based on present / expected income
after completion of the course.
In India: Rs. 10.00 Lacs.
Abroad: Rs. 20 Lacs.
COVERAGE OF EXPENSES:
Tuition Fees, Examination/ Library fee etc. charged by the Institution.

Hostel fees.
Cost of Books, equipments, instruments, etc.
Personal Computers/ Laptops, wherever required.
Any other expenses required to complete the Course viz: Study Tours, Project
works, thesis, etc.
MARGIN:
15% (Any scholarship / assistantship, if received, would not be included in

margin).
REPAYMENT PERIOD:
Maximum 60 EMIs.
SECURITY:
100% tangible collateral security by way of mortgage of property or

assignment of securities NSC, KVP, LIC policy, FDR etc.
Personal guarantee of Father / mother of the applicant or any other person
having sufficient worth
INTERST RATE:
0.75% Above BPLR i.e. 12.75%
Page 59
PROCESSING CHARGES:
0.50% of Loan amount
BARODA AUTO LOAN

As we are aware that our Bank was having different products related to Auto Loan
sector.
These Loan Schemes have been realigned for operational convenience under the name
BARODA AUTO LOAN as below:
1) Baroda Car Loan
2) Baroda Car Loan to HNIs /Corporates
3) Baroda Loan for Two Wheelers
PURPOSE:
For purchase of any new four wheeler, car, jeep, station wagon etc. and two
wheeler for private use.
For purchase of second hand car / Two Wheeler ( not more than 3 years old )
ELIGIBILITY:
Salaried Employees / Directors of private, Public Limited Companies,
Proprietorship /Partnership firms and Government Employees / individuals,
high salary earners /Businessmen / Professionals.
Prior account relationship not essential. However, statement of account for last
six months should be studied to satisfy that the conduct of the account is
satisfactory.
Minimum age 21 years
Maximum age
Page 60
Salaried:
Present age + repayment period should not exceed retirement age.
Others: Present age + repayment period should not exceed 65 years.
Minimum Employment one year / stable business.
LIMIT
New Vehicle: Rs.15.00 lacs
For HNIs/ Corporate: Rs.100 lacs
Old Vehicle: Rs.10.00 lacs,
INCOME CRITERIA:
Monthly Income Modified Criteria
For salaried 24 times of monthly income
Other than salaried 3 times of gross annual

income
For Two Wheeler: Rs.1.00 lac or 5 times of gross monthly income which ever
is lower subject to repayment capacity.
MARGIN:
Amount of loan Purpose Margin
Up to Rs.15 lac Purchase of new car 15%
Purchase of old vehicle 40%
Purchase of two wheeler 10%
Above Rs.15 lac Purchase of new car 20%
Page 61
INTEREST RATE: BPLR-12%
Amount of loan ROI

Up to Rs.15 lacs 1.50% below BPLR
i.e. 10.50%
Above Rs.15 lacs 0.75% below BPLR
i.e. 11.25%
Concession of 0.50% in rate of interest will be provided to those who offer

minimum 50 % of liquid security e.g. NSC, KVP, LIC Policy or Fixed Deposit
of our Bank as collateral.
Concession to existing housing loan customers of 0.25%
REPAYMENT:
New Car- 84 EMIs
Second Hand Cars -36 EMIs
Two Wheeler- 60 EMIs
SECURITY:
Banks charge to be noted with RTO.
Comprehensive Insurance of vehicle with Bank clause.
PROCESSING & DOCUMENTATION CHARGES:

Car Loans
Up to Rs.15.00 lacs - 0.75 % Maximum Rs.6000/-
Limit Over Rs.15.00 lacs - 0.50 % of loan amount with a maximum
of Rs.15000/-
Page 62
Two Wheeler
2 % of Loan amount
minimum Rs.250/-
INSURANCE:
Comprehensive Insurance of the Vehicle with Banks Clause. In case of
second hand car, the existing insurance policy be got transferred to the name
of the borrower with banks clause.
POWER OF DEVIATION:
Powers of Financial Deviations which have a direct impact on Profit & Loss
A/C of bank shall not be exercised below the level of Baroda Corporate
Centre(BCC). However non financial deviations may be considered as per
powers delegated.
REASEARCH METHODOLGY
Objective of Research:
To know the repayment procedure of loan from the customers.
Page 63
The main objective behind
this project is to enhance my knowledge regarding several loan facilities provided
by the banks and to compare them on various parameters.
The project was done to correctly examine the schemes and their benefits
according to different segment of people and then to analyze the proceedings.
To check whether the schemes are practically applicable or not and are customers
satisfied with the same.
The project also aims to know the role of banks in retail loans segment, to explore
the working of retail hub of BOB, to know the credit scheme of BOB regarding
retail loans, to know how the retail loans are sanctioned.
Criteria to test the credibility of customers, to know the documents required for
financing retail loans.
To know about the monthly installment paid by the customers.
Research Methodology
Population:
The study aimed to include the customers of SBI and BOB to make a comparative
analysis of different loan schemes of these two banks..
Sample Size:
Page 64
A Sample size of 50
respondents has been taken for the current study because it is not possible to cover the
whole universe in the available time period. So it is necessary to take the sample size.
In 50 respondents 25 respondents from BOB and 25 from SBI. The sample is the
people of age group lying between eighteen to sixty years. The sample was taken in
the form of strata based on age, sex, and income group.
Sampling technique:
The sampling technique was probabilistic sampling more specifically the
random convenient and judgmental sampling was used. As in probabilistic sampling
the select unit for observation, with known probabilities so that statistically sound
assumptions are supported from the sample to entire population so that we had
positive probability of being selected into the sample. I used stratified random
sampling and made the strata on the basis of age, occupation, income level, gender.
Research Type : Exploratory
Sources of Data:
The method adopted to carry on this report was based on both primary and secondary
sources.
Primary sources were:

Through personal interaction with the customers visiting to the bank.
Through telephonic interaction.
Through interaction with the existing employees.
Secondary sources were:

By reading manuals of bank.
Through websites.
Brochures, leaflets
Journals
Circulars
Page 65
COMPARATIVE STUDY:
PRODUCTS SELECTED:-
Home loan
Education loan
Auto loan.
BANKS COVERED
Page 66
Public Sector: - State
Bank of India & Punjab National Bank
Private Sector:- HDFC Bank & ICICI Bank
HOME LOAN
Basis of BANK OF BARODA STATE BANK OF INDIA
Comparison
Purpose Purchasing of new residential Same
house/flat and construction of
new dwelling unit.
Purchase of old dwelling
unit(not more than 25 year)
Purchase of plot of land, subject
to construction within 3 years.
Reimbursement for house/flats
constructed /purchased (not prior
to 24 months) from own sources.
Loan for purchase /constructed
of second house can be
considered.
Eligibility All individuals singly or jointly Minimum age 18 years
Principal applicants must be

employed minimum for 3 years
Maximum age limit -70
Minimum age-Principal
years
borrower-21 years and Co
borrower-18 years
Housing loan to HUF is not to be
considered
Limit Maximum limit-100 lacs
Page 67
Monthly Total Total
Repaying income(Rs) deduct Monthly income(Rs) deduct
Capacity (EMI ratio) (EMI
ratio)
Up to 20000 40% Up to 16000 40%
20000 50000 50% 16000 - 41000 50%
More than 50000 60% More than 41000 55%
Repayment Maximum 25 years (including Maximum 25 years

moratorium period) (including moratorium
Age of the borrower + repayment period period)
should not exceed Age of the borrower + repayment
Retirement age in case of salaried period should not exceed 70 years.
Moratorium 18 months Same
Period
Security Mortgage of the property Same
constructed/purchased
Processing Loan up to Rs 20 Lacs-0.35% on Loan up to Rs 20 Lacs-
Charges loan amount + service tax 0.25% on loan amount +
Loan above Rs 20 lacs -0.40%
service tax
on loan amount (Maximum Rs Loan above Rs 20 lacs
15000+Service tax) -0.50% on loan amount
(Maximum Rs
15000+Service tax)
Insurance The insurance of the house Free personal accident
mortgaged to the bank is to be insurance cover up to Rs 40
done at the banks cost under lacs
Optional group insurance
Baroda loan Suraksha Bima
from SBI life at
policy with national insurance
concessional premium.(up
company Ltd.
Page 68
Free accidental front
insurance of the borrower to premium financed as part of
cover the outstanding loan project cost)
amount with accrued interest at
the banks cost
Now it has been decided by the
bank to include another
insurance provider M/S Kotak
Mahindra life insurance Ltd
with a purpose to have an
additional option to provide life
insurance facility to our home
loan borrowers
In case of foreclosure of loan,
proportionate excess premium
paid shall be refunded by Kotak
Mahindra Life Insurance.
Speed of Within 6 days Same

Sanction
Pre- Payment Nil Nil
Charges
INTEREST RATE OF BOB

Fixed Rate option
Up to 5 years 9.50% 10.25%
Over 5 years & up to 9.75% 10.50%
10years
Over 10 years & up to 15 10.00% 10.75%
yrs
Up to 5 years 3.50% below BPLR i.e. 2.75% below BPLR i.e.
8.50% 9.25%
Page 69
Over 5 3.25% below 2.50%
years up to 15 years BPLR i.e. 8.75% below BPLR i.e. 9.50%
Over 15 years up to 25 3.00% below BPLR 2.25% below BPLR i.e.
years i.e.9.00% 9.75%
INTEREST RATE OF SBI
2nd and 3rd

Loan Schemes 1st Year After 3rd Year
year
9.00% (p.a.) 9.00% (p.a.)
Floating Interest Floating Interest
SBI HI-FIVE Loan 8.00% (p.a.) Rates Rates
Loan Amount up to Rs. 5 Fixed interest OR OR
Lacs rate 10.50% (p.a.) 10.50% (p.a.)
Fixed Interest Fixed Interest Rates
Rates
9.00% (p.a.)
Floating Interest
SBI Easy Home Loan 8.00% (p.a.)
8.50% (p.a.) Rate
Loan Amount up to Rs. 50 Fixed interest
Fixed Interest Rate OR
Lacs rate
10.50% (p.a.)
Fixed Interest Rate
10.00% (p.a.)
SBI Advantage Home Loan Floating Interest
8.00% (p.a.) 9.00% (p.a.)
Rate
Fixed interest Fixed Interest
Loan Amount Above Rs. OR
rate Rates
50 Lacs 11.00% (p.a.)
Fixed Interest Rate
Basis of BANK OF BARODA
Page 70
Comparison
Purpose Purchasing of new residential house/flat and construction of new dwelling unit.
Purchase of old dwelling unit(not more than 25 year)
Purchase of plot of land, subject to construction within 3 years.
Reimbursement for house/flats constructed /purchased (not prior to 24 months)
sources.
Loan for purchase /constructed of second house can be considered.
Eligibility All individuals singly or jointly

Principal applicants must be employed minimum for 3 years
Minimum age-Principal borrower-21 years and Co borrower-18 years
Housing loan to HUF is not to be considered
Limit Maximum limit-100 lacs
Repaying Month income(Rs) Total deduct
Capacity (EMI ratio)
Up to 20000 40%
20000-50000 50%
Greater than 50000 60%
Repayment Maximum 25 years (including moratorium period)

Age of the borrower + repayment period should not exceed
Retirement age in case of salaried
Moratorium 18 months
Page 71
Period
Security Mortgage of the property constructed/purchased
Processing Loan up to Rs 20 Lacs-0.35% on loan amount + service tax
Loan above Rs 20 lacs -0.40% on loan amount(Maximum Rs 15000 + Service tax)
Charges
Insurance The insurance of the house mortgaged to the bank is to be done at the banks c
Baroda loan Suraksha Bima policy with national insurance company Ltd.
Free accidental insurance of the borrower to cover the outstanding loan amount wi
interest at the banks cost
Now it has been decided by the bank to include another insurance provider M
Mahindra life insurance Ltd with a purpose to have an additional option to pr
insurance facility to our home loan borrowers
In case of foreclosure of loan, proportionate excess premium paid shall be re
Kotak Mahindra Life Insurance.
Speed of Within 6 days

Sanction
Pre Nil
Payment
Charges
Balance t/f Nil
Charges
MARGIN OF BOB
Monthly Purpose Margin

income
Up toPurchase of plot 20%
Page 72
Rs.20000/-
House/flat already constructed from 25%

own resources
All other cases 20%
Above Purchase of plot 20%

Rs.20,000/-
House/flat already constructed from 20%

own resources
All other cases 15%
MARGIN OF PNB
Purpose Margin
Purchase of plot 20%
House/flat already constructed from own resources 25%
All other cases 25%
INTEREST RATE OF BOB

Fixed Rate option
Up to 5 years 9.50% 10.25%
Over 5 years & up to 9.75% 10.50%
10years
Over 10 years & up to 15 10.00% 10.75%
yrs
Up to 5 years 3.50% below BPLR 2.75% below BPLR
i.e. 8.50% i.e. 9.25%
Page 73
Over 5 3.25% below 2.50%
years up to 15 years BPLR below BPLR
i.e. 8.75% i.e. 9.50%
Over 15 years up to 25 3.00% below BPLR 2.25% below BPLR
years i.e.9.00% i.e. 9.75%
INTEREST RATE OF PNB

Fixed Rate option
Up to 5 years 9.25% 10.00%
Over 5 years & up to 10 10 % 10.25%
years
Over 10 years & up to 25 10.75 % 11.00 %
yrs
Up to 5 years 8.75 % 9.25%
Over 5 years up to 15 9% 9.25 %
years
Over 15 years up to 25 9.50 % 10.75 %
years
Page 74
Basis of BANK OF BARODA HDFC
Compariso
n
Purpose Purchasing of new residential Construction or purchase of
house/flat and construction of house/flat.
Purchase of house/flat on
new dwelling unit.
Purchase of old dwelling power of attorney basis from
unit(not more than 25 year) the original allottee.
Purchase of plot of land, subject Carrying out
to construction within 3 years. repairs/renovations/additions/
Reimbursement for house/flats
alterations to existing
constructed /purchased (not
house/flat.
prior to 24 months) from own
sources.
Loan for purchase /constructed
of second house can be
considered.
Eligibility All individuals singly or jointly Same

Principal applicants must be
employed minimum for 3 years
Minimum age-Principal
borrower-21 years and Co
borrower-18 years
Housing loan to HUF is not to
be considered
Limit Maximum limit-100 lacs. For Construction/Purchase of
house/flat: - 85% of the cost
Page 75
of
construction of house.
For Carrying out
repairs/renovation/additions/a
lterations:-85% of estimated
cost subject to maximum of
Rs.20 lacs.
Repaymen Maximum 25 years (including Loan is to be repaid in EMIs
t moratorium period) with in a period of 15 years.
Age of the borrower +
repayment period should not
exceed
Retirement age in case of
salaried
Moratoriu 18 months Same
m Period
Security Mortgage of the property Same
constructed/purchased
Processing Loan up to Rs 20 Lacs - 0.35% 0.75% of original loan
Charges on loan amount + service tax amount.
Loan above Rs 20 lacs -0.40%
on loan amount(Maximum Rs
15000 + Service tax)
Speed of Within 6 days Same
Sanction
Page 76
BANK OF BARODA
Basis of
Comparison
Purpose Purchasing of new residential house/flat and construction of new dwelling unit.
Purchase of old dwelling unit(not more than 25 year)
Purchase of plot of land, subject to construction within 3 years.
Reimbursement for house/flats constructed /purchased (not prior to 24 months) f
sources.
Loan for purchase /constructed of second house can be considered.
Eligibility All individuals singly or jointly

Principal applicants must be employed minimum for 3 years
Minimum age-Principal borrower-21 years and Co borrower-18 years
Housing loan to HUF is not to be considered
Limit Maximum limit-100 lacs.
Page 77
Insurance The insurance of the house mortgaged to the bank is to be done at the banks cos
Baroda loan Suraksha Bima policy with national insurance company Ltd.
Free accidental insurance of the borrower to cover the outstanding loan amount with
interest at the banks cost
Now it has been decided by the bank to include another insurance provider M/
Mahindra life Insurance(KLI) Ltd with a purpose to have an additional option to pro
insurance facility to our home loan borrowers
In case of foreclosure of loan, proportionate excess premium paid shall be refunded
Home loan
CONCLUSION:-
After comparing BOB with other public & private sector banks, It is observed
that the extra benefit of the insurance of the house mortgaged to the bank is
extended by BOB at banks cost under Baroda loan Suraksha Bima policy
with national insurance company Ltd.
0.25% of concession in rate of interest is provided to the Govt. and preferred
organization and such facility is not given by any other bank.
SUGGESTION:-
Page 78
After the
comparison it is suggested for salaried applicants percentage total permissible
deductions should be increased in the lower income bracket to enhance his
eligibility.
Upper age limit for availing loan i.e. 65years be increased to 70 years.
EDUCATION LOAN

Comparison
Eligibility Should be Resident Indian. Same
Secured admission to professional
(In India)
/technical courses in India through
Entrance Test/merit based selection
process.
Should be an Indian national
Page 79
/technical courses in
Abroad through Entrance Test
(In Abroad) /merit based selection process
Limit In India-10 lacs Same
In Abroad-20 lacs
Margin Up to Rs 4 lacs-Nil Same
Above Rs 4 lacs-5%
(In India)
Up to Rs 4 lacs-Nil
Above Rs 4 lacs-15%
(In Abroad)
Moratorium Course period + 1 year or 6 months Same

Period after getting job, whichever is
earlier.
Repayment 5-7 years after moratorium period. Same
Period
Processing & In India-Nil Same
In Abroad-1% of the loan amount.
Doc.
But it refunded if applicants avail
loan.
Security Up to Rs 4 lacs-no security. Same

Above Rs 4 lacs & up to Rs 7.5
lacs-collateral in the form of a
suitable third party guarantee.
Above Rs 7.5 lacs-collateral
security equal to 100% of the loan
amount or suitable third party
guarantee along with the
assignment of future income of the
student for payment of installments.
Page 80
Penal interest @ 2% Penal
Other p.a be charged for loan amount interest @ 2% p.a be
Conditions above Rs 4 lacs for the overdue charged for loan amount
amount &period above Rs 4 lacs for the
overdue amount &
1% interest concession is provided
period.
if the interest debited during the
1% interest concession
repayment holiday is serviced.
is provided if the interest
debited during the
1 % concession in rate of interest
repayment holiday is
to loan sanctioned for the benefit
serviced.
of girl student.
0.5 % concession in
rate of interest to loan
sanctioned for the
benefit of girl student.
INTEREST RATE
BANK OF BARODA STATE BANK OF INDIA
Up to Rs 4 lacs-10% Above Rs 4 lacs and up to Rs 7.5 lacs-
Above Rs 4 lacs-12% 12.75%
Above Rs 7.5- 13.75%
Page 81
Basis of BANK OF BARODA PUNJAB NATIONAL BANK
Comparison
Eligibility Should be Resident Indian. Same
(In India)
/technical courses in India
through Entrance Test/merit based
selection process.
Should be an Indian national
(In Abroad) Secured admission to professional
/technical courses in Abroad
through Entrance Test /merit
based selection process
Limit In India-10 lacs Same
In Abroad-20 lacs
Above Rs 4 lacs-5%
(In India)
Up to Rs 4 lacs-Nil
Above Rs 4 lacs-15%
(In Abroad)
Moratorium Course period +1 year or 6 Same

Period months after getting job,
whichever is earlier.
Repayment 5-7 years after moratorium Same
Period period.
Processing In India-Nil
Charges Same
loan.
Documentation Up to Rs 4 lacs-Rs300 + service

Nil
Charges tax
Above Rs 4 lacs-Rs 500 +
Page 82
service tax
Security Up to Rs 4 lacs-no security. Same
assignment of future income of
the student for payment of
installments.
Other Charges Penal interest @ 2% p.a be Penal interest @ 2% p.a
charged for loan amount above be charged for loan
Rs 4 lacs for the overdue amount amount above Rs 4 lacs
&period for the overdue amount &
1% interest concession is
period
provided if the interest debited 1% interest concession is
during the repayment holiday is provided if the interest
serviced. debited during the
repayment holiday is
serviced.
PNB does not give any

such facility.
1 % concession in rate of
interest to loan sanctioned for
the benefit of girl student.
INTEREST RATE
BANK OF BARODA PUNJAB NATIONAL BANK
Up to Rs 4 lacs-10% Up to Rs 4 lacs-11.5%
Above Rs 4 lacs-12% Above Rs 4 lacs-12.25%
Page 83
Comparison
Eligibility Should be Resident Indian. Should be Resident
Secured admission to
(In India) Indian.
professional /technical courses in He/She should be aged
India through Entrance Test/merit between 16 -35 years.
based selection process.
Page 84
Should be an Indian
national professional /technical
courses in India through
professional /technical courses in
Entrance Test/merit
(In Abroad) Abroad through Entrance Test
based selection process.
/merit based selection process.
Limit In India-10 lacs In India-15 lacs
In Abroad-20 lacs In Abroad-20 lacs
Above Rs 4 lacs-5%
(In India)
Up to Rs 4 lacs-Nil
Above Rs 4 lacs-15%
(In Abroad)
Moratorium Course period +1 year or 6 months Same

Period after getting job, whichever is
earlier.
Repayment 5-7 years after moratorium period. Same
Period
Processing In India-Nil Maximum 2% of loan amount
Charges
loan.
Nil
Documentation Nil
Charges
Security Up to Rs 4 lacs-no security. Collateral are required only for
education loan above Rs7.5
lacs. The acceptable collaterals
are:
Fixed deposit
Property
assignment of future income of the
student for payment of
installments.
Page 85
Penal interest @ Pre-
Other Conditions 2% p.a be charged for loan amount payment charges i.e. 4
above Rs 4 lacs for the overdue % of the principal
amount & period outstanding.(after six
1% interest concession is provided
months of availing the
if the interest debited during the
loan, before that, is not
permitted)
1 % concession in rate of interest
Charges for late
to loan sanctioned for the benefit
payment of EMI
of girl student.
-@24%p.a on amount
outstanding from date
of default.
Cheque swapping
charges-up to Rs 500
per event
Loan Re-booking
Bounce cheque
per bouncing
RATE OF INTEREST
BANK OF BARODA HDFC
Up to Rs 4 lacs-10% Up to Rs 4 lacs-12.5%
Above Rs 4 lacs-12% Above Rs 4 lacs-13.75%
Page 86
Basis of BANK OF BARODA ICICI
Comparison
Eligibility (in India) Should be Resident Indian. Should be Resident
Indian.
professional /technical courses He/She should be aged
in India through Entrance between 16 -55 years
Test/merit based selection
process.
Should be an Indian national Secured admission to
(in abroad) Secured admission to
professional /technical
professional /technical courses
courses in India
in Abroad through Entrance Test
through Entrance
Page 87
/merit based
selection process Test/merit based
selection process
Limit In India-10 lacs In India-15 lacs
In Abroad-20 lacs In Abroad-20 lacs
Margin(In India) Up to Rs 4 lacs-Nil Same
Above Rs 4 lacs-5%
Up to Rs 4 lacs-Nil
Above Rs 4 lacs-15%
(In Abroad)
Moratorium Period Course period +1 year or 6 Same

months after getting job,
whichever is earlier.
Repayment Period 5-7 years after moratorium Same
period.
Processing Charges In India-Nil Maximum 2% of loan
In Abroad-1% of the loan
amount
amount. But it refunded if
applicants avail loan.
Nil
Documentation
Charges Nil
Security Up to Rs 4 lacs-no security.

security equal to 100% of the
loan amount or suitable third
party guarantee along with the
assignment of future income of
the student for payment of
installments.
Other Conditions Penal interest @ 2% p.a be NA
charged for loan amount above
Rs 4 lacs for the overdue amount
Page 88
&period
1% interest
concession is provided if the
interest debited during the
1 % concession in rate of
interest to loan sanctioned for
the benefit of girl student.
RATE OF INTEREST
BANK OF BARODA ICICI
Up to Rs 4 lacs-10% Up to Rs 4 lacs- 14.75%
Above Rs 4 lacs-12%
Education Loan
CONCLUSION:-
The benefit BOB is providing to its customers in education loan is 1 % concession in
rate of interest to loan sanctioned for the benefit of girl student. The closest
competitor SBI provides 0.5% concession rate of interest to loan sanctioned for the
benefit of girl student.
SUGGESTION:-
After the study it is suggested that education loan should be provided to those
meritorious students who are not financially strong i.e. the annual income of his/her
parents is Rs.1 la
Page 89
AUTO LOAN

Comparison
Purpose For purchase of any new four Same
wheeler ,car jeep station wagon
and two wheeler for private use
For purchase of second hand car
/two wheeler(not more than 3
years old)
Eligibility Minimum age-21 years Same
Maximum age-Salaried:
present age+ repayment period
should not exceed retirement
age. Other: present age+
exceed 65 years
Minimum employment one
year/stable business
Limit No Maximum limit, and subject to
New Vehicle Rs 15 lacs Maximum 2.5 times of the net

annual income
For Rs 100 lacs Old vehicle-Rs15 lacs
HNIs/Corporate
Rs 10 lacs
s
Rs. 1 lack
Old Vehicle
Two Wheeler
Processing & Up to Rs 15 lacs-0.75% 0.50% on loan amount.
Page 90
maximum Rs (Maximum
Doc. Charges 6000 Rs 10000)
Above Rs 15 lacs-0.50% 25% of processing fee will be
maximum Rs 15000 retained if application is
Two wheeler-2% of loan
rejected.
amount
Repayment New car-84 EMI For salaried person-7 years

Second hand car-36 EMI For self employed-5 years
Two wheeler-60 EMI
Security Banks charge to be noted with Same
RTO
Comprehensive insurance of
vehicle with bank clause
Margin Up to Rs 15 lacs-15% on Maximum 85% of total cost
invoice value or 2.5 times of net annual
Above Rs 15 lacs-20% on cost
income, whichever is less
including registration and
insurance.
Old vehicle-Rs 40%
Two wheeler-10% on invoice
value
Insurance Comprehensive insurance of the Same
vehicle with banks clause.
Interest Rate Up to Rs 15 lacs-10.50% 1st year : 8.25% fixed
Above Rs 15 lacs-11.25%
2nd and 3rd year : 10% fixed
For two wheeler-12%
4th and 5th year : 11.25%
floating
floating
Second hand cars-60 EMI For self employed-5 years
Period
Prepayment Nil 2% on loan amount prepaid
charges
Pre Closure Nil 2 % of pre-closed amount
Charges
Other Concession of 0.50% in interest No such concession is
Page 91
rate to those who provided.
Conditions offer minimum 50% liquid
security as collateral in bank
(NSC,KVP).
Concession of 0.25% in interest
rate of car loan, and concession
of 0.50 % in interest of two
wheeler loan to those who are
already availing home loan
Basis of BANK OF BARODA PUNJAB NATIONAL BANK

Comparison
wheeler, car jeep station wagon
and two wheeler for private
use
For purchase of second hand
car /two wheeler(not more than
3 years old)
Maximum age-
Salaried: present age+
Maximum age-
exceed retirement age. Other:
exceed 58 years. Other:
should not exceed 65 years
present age+ repayment
Page 92
Minimum
period should not exceed 65
employment one year/stable
years
business
Limit No Maximum limit, and subject to
New Vehicle 25 times of the monthly net

Rs 15 lacs
salary or Rs 25 lacs,
For whichever is lower.
HNIs/Corporates
Rs100 lacs
Old Vehicle
Rs 10 lacs
Two Wheeler
Rs 1 lacs
Processing & Up to Rs 15 lacs-0.75% 1% of loan amount.
Over Rs 15 lacs-0.50%(max
Doc. Charges (Maximum Rs 6000)
15000) 25% of processing fee will
For two wheeler-2%
be retained if application is
rejected.
Repayment New car-84 EMI Same
Second hand cars-60 EMI

RTO
vehicle with bank clause.
Margin Up to Rs 15 lacs-15% on For new vehicles-20%
For old vehicle-30%
invoice value
insurance.
Page 93
Old vehicle-Rs
40%
value
Insurance Comprehensive insurance of Same
the vehicle with banks clause.
Interest Rate Up to Rs 15 lacs-10.50% 1st year : 8.25% fixed
Above Rs 15 lacs-11.25%
2nd and 3rd year : 10% fixed
For two wheeler-12%

floating
floating
Second hand cars-60 EMI For self employed-5 years
Period
Prepayment Nil 2% on loan amount prepaid
Charges
Charges
Other Conditions Concession of 0.50% in No such concession is
interest rate to those who offer provided.
minimum 50% liquid security
as collateral in
bank(NSC,KVP)
Concession of 0.25% in
interest rate of car loan, and
concession of 0.50 % in
interest of two wheeler loan to
those who are already availing
home loan.
Page 94
Comparison
wheeler ,car jeep station wagon
and two wheeler for private use
/two wheeler(not more than 3
years old)
Eligibility Minimum age-21 years. Same
Maximum age-Salaried: present

Maximum age-
age+ repayment period should not
exceed retirement age. Other:
repayment period should
not exceed 58 years.
should not exceed 65 years
Other: present age+
repayment period should
not exceed 65 years
Limit No maximum limit and subject

to
New Vehicle
Rs 15 lacs
Borrow up to 3 times
For salary annual (for
HNIs/Corporates salaried person)
Rs100 lacs Borrow up to 6 times
Page 95
annual
Old Vehicle
Rs 10 lacs income(for self
employed)
Two Wheeler
Rs 1 lacs
Processing & Up to Rs 15 lacs-0.75% 2% of loan amount

Over Rs 15 lacs-0.50%(max
Doc. Charges (maximum Rs. 4000
15000)
whichever is lower.)
For two wheeler-2%
Repayment New car-84 EMI Flexible repayment
option ranging from 12 to
84 months

RTO
Margin Up to Rs 15 lacs-15% on invoice Nil
value
insurance.
Old vehicle-Rs 40%
value
Interest Rate Up to Rs 15 lacs-10.50% 1-5 year: 12.5 % fixed.
Above Rs 15 lacs-11.25% 6-7 year: 12% floating.
For two wheeler-12%
Repayment New car-84 EMI For salaried person-7
Period years
For self employed-5
years
Prepayment Nil 2% on loan amount
Charges prepaid
Page 96
Charges
Other Conditions Concession of 0.50% in interest No such concession is provided.
rate to those who offer minimum
50% liquid security as collateral in
bank (NSC, KVP).
rate of car loan, and concession of
0.50 % in interest of two wheeler
loan to those who are already
availing home loan
Basis of BANK OF BARODA ICICI

Comparison
wheeler ,car jeep station wagon and
two wheeler for private use
/two wheeler(not more than 3 years
old)
Maximum age-Salaried: present
age+ repayment period should not Maximum age-
exceed retirement age. Other: Salaried: present age +
present age+ repayment period repayment period
should not exceed 65 years should not exceed 58
years. Other: present
age+ repayment period
should not exceed 65
years
Limit No maximum limit and subject
Page 97
to
Rs 15 lacs
New Vehicle Borrow up to 3 times
salary annual (for
For salaried person)
Rs100 lacs Borrow up to 6 times
HNIs/Corporates
annual income(for self
Old Vehicle Rs 10 lacs employed)
Two Wheeler
Rs 1 lacs
Processing & Up to Rs 15 lacs-0.75% Less than 2.5 lack-
Over Rs 15 lacs-0.50%(max 15000)
Doc. Charges Rs.2500
For two wheeler-2%
Rs.2.5lack-Rs.5lackRs.
3100
Rs.5 lack- Rs. 4000
More than Rs. 10 lack-
Rs.5000
Repayment New car-84 EMI Tenure ranges from 1

year to 5 years for new
car
RTO
Margin Up to Rs 15 lacs-15% on invoice NA
value
insurance.
Old vehicle-Rs 40%
Two wheeler-10% on invoice value
Interest Rate Up to Rs 15 lacs-10.50% Less than 2.5 lack- 9.5%
Above Rs 15 lacs-11.25% Rs.2.5lack-Rs.5lack-
For two wheeler-12%
10%
Rs.5 lack-10.5%
More than Rs. 10 lack-
Page 98
11.5%
Repayment New car-84 EMI For salaried person-84

Period EMI
For self employed-60
EMI
Prepayment Nil 5% of principal
Charges outstanding or
Interest outstanding for
unexpired period of the
loan.
(Whichever is lower.)
Other Conditions Concession of 0.50% in interest NA
rate to those who offer minimum
50% liquid security as collateral in
bank (NSC, KVP).
rate of car loan, and concession of
0.50 % in interest of two wheeler
loan to those who are already
availing home loan
Page 99
DATA ANALYSIS & INTERPRTATION
I have done market research on customer of Bank of Baroda &State bank of India
through questionnaire .This interpretation are shown by bar graph.
Total number of respondent of BOB &SBI, based on age group.
Age BOB SBI

<21 1 2
21-30 years 10 5
31-40 years 9 13
Above 40 5 5
Interpretation:
The above bar graph shows that the maximum respondent s are from the age
group between 21-30 years is much larger than S.B.I. and leased are from below
age group of 21.
Page 100
No of respondents of BOB &SBI ,based on monthly income
Monthly income BOB SBI

<15000 2 1
15000-30000 5 4
30100-40000 13 10
Above 40000 5 5
NOTE:
On X-axis----monthly income
On Y-axis----no of respondent
Interpretation:
This bar graph shows that the largest number of respondent of BOB in
comparison with S.B.I are from income above 40,000 and the minimum are
from income below 15,000.
Page 101
No of
respondents of BOB & SBI ,on the basis of association
with bank
Association with bank BOB SBI

<1 year 2 4
1-5 year 11 13
>5 year 12 8
On X-axis----association with bank

On Y-axis----no of respondent
Interpretation:
Graph shows that the largest number of responded of BOB in comparison to S.B.I.
are from the age group 1 to 5.
No of respondent on the basis of reason of banking
Page 102
BOB SBI
Saving a/c 5 4
Current a/c 3 4
Fixed deposit 2 3
Loan purpose 11 14
others 4 0
NOTE:
Series 1-BOB
Series2-SBI
Interpretation:
In maximum cases of reason of banking is S.B.I is greater than the BOB but in
case of saving account the BOB is much beneficial than the S.B.I.
Page 103
No of respondents on the basis of different means of
source of information
Source of information BOB SBI

News paper 0 3
Television 0 0
Internet 2 0
Other resources 23 22
Interpretation:
Graph shows that the in means of source of information largest number of
respondent BOB in comparison to S.B.I in case of other recourses .
No of respondent on the basis of preferable loan
Types of loan BOB SBI

Home loan 12 9
Education loan 3 3
Personal loan 6 5
Auto loan 4 8
Page 104
Interpretation:
This bar graph shows that the largest number of respondent of BOB in comparison
with S.B.I are from home loan and the minimum are from auto loan.
No of respondents on the basis of key motivating

factors of different loan scheme
Key motivating factor BOB SBI

Interest rate 15 11
Page 105
Processing fee 2 2
Exiting relationship 9 4
Brand loyalty 2 7
Easy 0 0
documentation
other 0 0
Interpretation:
This bar graph shows that the largest number of respondent of BOB in comparison
with S.B.I are from interest rate and the minimum are from brand loyalty .
Page 106
No of
respondents on the basis of difficulty face while
availing the loan
Difficulty face BOB SBI

Yes 2 1
No 23 24
Interpretation:
On the basis of difficulty face while availing the loan maximum number of
respondent are agree with that they dont face any difficulties.
No of respondents on the basis of satisfaction of customer service
Page 107
Satisfaction BOB SBI
(customer service)
Yes 22 21
No 3 4
Interpretation:
The maximum number of respondents are from the BOB is satisfied of customer
service in comparison to the S.B.I.
FINDINGS
During survey I found that many people not aware with Loan due to the
Less promotion.
Suddenly People cannot change the Loan plan because they like to that
particular plan.
The maximum respondent s are from the age group between 21-30 years is
much larger than S.B.I. and leased are from below age group of 21.
Page 108
The maximum
number of respondents are from the BOB is satisfied of customer service in
comparison to the S.B.I.
On the basis of difficulty face while availing the loan maximum number of
respondent are agree with that they dont face any difficulty.
SUGGESTION
Page 109
(1) Some efforts should be
made at local level to make the loan more popular in the area.
(2) As the financial range of the rural population is limited therefore low price
scheme should be displayed at market places.
(3) The availability of loans are not regular in all the areas. Some steps should be
taken in this direction.
(4) Agents should try to improve their after sale services
(5) Some more and cheaper schemes should be started by BOB.
(6) BOB should try to expand agencies as it is not available in many villages of the
area
(7) Displaying of policies in maximum possible market places is the important

factor in this direction
(8) The introduction of the other companies in the area will also help in the
marketing activities of BOB.
LIMITATION
Page 110
There were certain limitations faced during the study.
Some people were not willing to disclose the investment profile
.The biased ness was being taken care of.
The area of sample was decided after taking into consideration the major
factors like
Availability of investors
Approachability
Time available with investor for interaction, etc.
CONCLUSION
Page 111
The people are availing loan
facility from both the banks. No. of respondents of SBI were 25 and 25 of BOB.
People related with SBI are more satisfied with the interest rate as compared
to BOB. Customers of BOB know much about home loan than SBI. Both
BOB and SBI mostly offer mobile banking services.
Processing of BOB is fast than SBI.
Home loan services of BOB are just as good as compared to SBI.
Customers related with SBI are more satisfied with the customer service as
compared to BOB.
From all this It is concluded that, no doubt SBI is the Indias largest bank but our
BOB is also has good positioning in the minds of customers.
BIBLIOGRAPHY
Sites Visited
Page 112
www. rbi.org.in
http://www.bank of baroda.com
www.eximbankindia.com
http://www.made from india.com/retail loan enterprises
www.tradeindia.com/newsletters
www.crisil.com/crisil-young/Divya-Sampath_Dissertation viewed on 30.5.10
www.fourthwavetpc.com/media/research.pdf
http://mpra.ub.uni-muenchen.de/6086/1/MPRA_paper_6086.pdf

Book Referred
Gopinath G.R-banking principles and operations

Circulars of Bank of Baroda
Books of instruction of Bank of Baroda
Newspaper
Business Standards
Economic Times
The Times of India
ANNEXURE
QUESTIONNAIRE FOR
THE STUDY OF BOBS RETAIL LOAN PRODUCTS VIS--VIS COMPETING &

PEER BANKS
NAME-
CONTACT NO.-
Page 113
ADDRESS-
OCCUPATION
1) Age?
a) Below 21 c) 34-40
b) 21 34 d) 45 & above
2) Monthly Income?
a) <15000 c) 30001
b) 15001-30000 d) 45001 & above
3) With which bank are you banking currently?
a) BOB d) IDBI
b) SBI e) ICICI
c) PNB f) HSBC
g) Others
4) From how many years you are associated with the bank?
a) <1 year c) > 5 year
b) 1-5 year
5) The services presently availed from banks?

a)Savings a/c d)Mutual Funds
b) Current a/c e) Others
Page 114
c) Fixed Deposits
6) Do you agree with the psychology that for asset creation one should opt for loan?
a) Yes b) No
7) Are you aware of these types of loans?

a) Housing loan
b)Education loan
c) Auto loan
d) Traders loan
e) Mortgage loan
f) Personal loan
8) What type of loan do you expect to avail in near future?

a) Home Loan c) Personal Loan
b) Education Loan d) Mortgage Loan
9) Where from would you prefer taking loan?

a) Private sector bank b) Public sector bank
10) Which key factors motivate you for choosing any loan from a bank?
Give ratings (1 to 5) from lower to higher scale
a) Interest rate
Page 115
b) Processing fees
c) Existing relationship
d) Brand loyalty
e) Easy documentation
f) Lead time
g) Others
11) How do you come to know about the different loan scheme of that bank
a) Newspaper c) Internet
b) Television d) other resources
12) Are you satisfied with the speed of disposal of the loan application?
a) Yes b) No
13) Are you satisfied with the scheme norms as to eligibility of the loan amount?
a) Yes b) No
14) Are you satisfied with the services provided by BOB?

a) Yes b) No
Page 116
(Signature)
Date________________
Place______________
__
Page 117

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A

SUMMAR TRAINING REPORT

A Comparative study of Retail Loan products of

submitted in partial fulfillment for the award of

Submitted to: Submitted by:

IIMT PROFESSIONAL COLLEGE, MEERUT

I, Aman Prakash, student of PGDM , here by declare that project entitled A

First of all I would like to express my honest gratitude towards my institute,

I am thankful to BANK OF BARODA for providing me opportunity to work

I want to give my genial and sincere thanks to Prof. P. K. Agarwal (Director,

The purpose of training was to provide practical exposure of working

Particular Page No.

o History of Banking 2-5

o Comparative Study of Retail Loan 62-

o Data Analysis And Interpretation 101-109

SIGNIFICANCE OF THE STUDY

Indias banking system has several outstanding achievements to its credit. An

1. Early phase from 1786 to 1969

2. Nationalization of Banks and up to 1991 prior to banking sector reforms

Despite of scheme of social control there was no significant reorientation of

The major objective of nationalization were

Reduction in concentration of economic power in hands of few.

The Banks nationalized in 1969 were-

1. Allahabad Bank 8. Indian Bank

In order to move effectively, meet the growth development needs of the

The name of six banks that were nationalized is shown under:

Central bank Reserve Bank of India

Citibank HSBC Standard Chartered

INTRODUCTION TO BANK OF BARODA

Backed by the great vision of the founding father, Maharaja Sayajirao

The Bank made a humble beginning in 1908 in a small building in Baroda. On

New Citizen Bank of India (1961)

Surat Banking Corporation (1963)

Tamil Nadu Central Bank of India (1964)

Umbergaon Peoples Bank (1964)

NEW INITIATIVES OF BANK OF BARODA

1. Mr. M.D. Mallya Chairman & Managing Director

3. Mr. N. S. Srinath Executive Director

4. Mr. A. Somasundaram Director

5. Mr.Masarrat Shahid Director

6. Mr.Ranjit Kumar Chatterjee Director

7. Mr. Alok Nigam Director

8. Mr. Ajay Mathur Non official part time Director

9. Mr. Moulin A. Vaishnav Director

10.Dr. Atul Agarwal Director

11. Dr. Dharmendra Bhandari Director

12. Dr.Deepak Bhaskar Director

BANKS CORPORATE GOALS & STRATEGIES:

To maximize quality growth and profit through enhanced customer

Business & Financial Metrics

Results for Q4, 2009-10 (January-March)

Q4 (2009-10) Q4(2008-09) Change (in %)

Total Income# 5,120.73 4,992.41 2.57

Results for 2009-10 (April-March)

Apr-Mar(2009-10) Apr-Mar(2008-09) Change (in %)

Total Income# 19,423.25 17,754.22 9.40

To double its global business size within next 2-3 years

To acquire at least 2 million customers every year.

To double the retail assets and fee based income.

To increase advances by 24% and to record an incremental rise of Rs. 20705

To affect recoveries of at least Rs. 350 crore in the prudentially written-off

To increase Priority Sector Credit by 22%.

To increase advances to SME by 21%.