UNIVERSAL BANKING

MEMBERS
Name
Roll No.
Shakuntala Sharma
45
Nikita Vaz
47
Rahul Makwana
53
Samreen Sayyed
54
Jason Fernandes
56
Rollisha Dsouza
59

INTRODUCTION

Bank of Baroda is an Indian state-owned banking and

financial services company headquartered in Vadodara
(earlier known as Baroda) in Gujarat, India

It is the second-largest bank in India, after State Bank of

India, providing a wide range of banking products and
financial services to corporate and retail customers

In addition to its headquarters in its home state of Gujarat, it

has a corporate headquarters in the Bandra-Kurla Complex in
Mumbai

Based on 2014 data, it is ranked 801 on Forbes Global 2000

list

It has total assets in excess of 3.58 trillion, a network of

5307 branches in India and abroad, and over 8000 ATMs

FACTS
Type

Public Bank

Tradedas

BSE :532134

Industry

Banking, Financial services

Founded

20July1908

Founder

Maharaja Sayajirao Gaekwad

Headquarters

Vadodara (Baroda), Gujarat, India

Area served

Worldwide

Key people

P S Jayakumar (Chairman & MD)

Products

Credit cards, consumer banking, corporate

banking, finance and insurance, investment
banking, mortgage loans, private banking,
private equity, wealth management

Owner

Government of India

Website

www.bankofbaroda.com

GROWTH OF THE BANK

Stock prices have been fluctuating

Stock prices crashed from 1050 per share to 215
per share around the end of last year
It has been plummeting ever since
Failing to stay in the 200 zone and falling to the
165 - 185 zone.

UNIVERSAL BANKING

Universal Banking is a multi-purpose and multifunctional financial supermarket providing both

banking and financial services through a single window
Definition : As per the World Bank, "In Universal
Banking, large banks operate extensive network of
branches, provide many different services, hold
several claims on firms(including equity and debt) and
participate directly in the Corporate Governance of
firms that rely on the banks for funding or as insurance
underwriters"
In a nutshell, a Universal Banking is a superstore for
financial products under one roof, Corporate can get
loans and avail of other handy services, while they can
also deposit and borrow, It includes not only services
related to savings and loans but also investments

THE NEED FOR UNIVERSAL BANKING

The global retail financial services market is growing

very fast and chains of foreign banks are attacking
traditional banks by offering new products of loans and
investment portfolios under one roof
Information Technology development has paved the
way for excellent customer services
Liberalization and de-regulation of financial market
have led to fragmentation of traditional branch
services
The foreign and the new private sector banks have
started outsourcing various products
Customers have become very demanding now
Data warehousing has surfaced as an important
instrument in relation to how the banks use their
information with their virtual delivery channels

ADVANTAGES OF UNIVERSAL BANKING

Economies of Scale

Profitable Diversions

Resource Utilization

Easy Marketing on the Foundation of a Brand Name.

One-stop shopping

Investor Friendly Activities

DISADVANTAGES OF UNIVERSAL
BANKING

Different Rules and Regulations

Effect of failure on Banking System
Monopoly
Conflict of Interest

UNIVERSAL BANKING IN INDIA

The second Narasimham committee of 1998 gave an

introductory remark on the concept of the Universal
banking, as a different concept than the Narrow
Banking. Narsimham Committee II suggested that
Development Financial Institutions (DFIs) should
convert ultimately into either commercial banks or
non-bank finance companies
However, the concept of Universal Banking
conceptualized in India after the RH Khan Committee
recommended it as a different concept. The Khan
Working Group held the view that DFIs (Development
Finance Institutions) should be allowed to become
banks at the earliest

RBI GUIDELINES ON UNIVERSAL

BANKING

Reserve requirements

Reserve requirements

Disposal of non-banking assets

Composition of the Board

Prohibition on floating charge of assets

Nature of subsidiaries

Restriction on investments

Connected lending

Licensing

Branch network

Assets in India

Format of annual reports

Managerial remuneration of the Chief Executive Officers

Deposit insurance

Authorized Dealer's License

Priority sector lending

Prudential norms

UNIVERSAL BANKING MODELS

Fully Integrated Universal Banks

Partly Integrated Universal Conglomerates
Bank Subsidiary Structure
Bank Holding Company Structure

PRODUCTS ADOPTED BY BANK OF BARODA

Retail Banking
Rural/ Agri Banking
Wholesale Banking
SME Banking
Wealth Management
Demat
Product Enquiry
Internet Banking
NRI Remittances
Baroda e-Trading
Interest Rates
Deposit Products
Loan Products
ATM / Debit Cards

AGENCY FUNCTIONS OF THE BANK

Change of address or names of Shareholders
Transmission of shares
Transposition
De-materializing Shares
Investors Services Department
Registrars & Share Transfer Agent
Bonds related to Transfer
Lodgement of Shares
Duplicate Share Certificate
Duplicate Dividend Warrants
Revalidation
Means of communication
Investor Grievance Committee
Electronic Clearing Services or ECS
Stock Market Data

SME LENDING
Purpose: To provide hassle free credit for working capital and also long term
requirements, taking into account nature of business, cyclical trends, cash
flow projections, peak time requirements and any eventuality of unforeseen
spurt in the business
Eligibility: All Enterprises, i.e. Micro, Small & Medium Enterprises, as defined
under MSMED Act, 2006, and other entities with annual sales turnover up to
150/- crores exclusively banking with our bank/new borrowers desirous of
having sole banking arrangement with our bank
Compose Limit: 4.5 times of borrowers tangible net worth as per last audited
Balance Sheet, or, 5 Crores, whichever is lower
Margin: 25%
Rate of Interest: As per credit rating of the borrower
Security:
1. Exclusive charge on the assets of the enterprise.
2. Personal Guarantees of all promoter Directors / Partners.
3. Charge on the unencumbered personal properties of the partners,
promoter Directors, wherever applicable.
4. Third party guarantee in case of credit line above 1 Crore to Micro &
Small Enterprises as per Regulatory definition.
5. Any other collateral for the credit line above Rs. 25.00 lacs in case of
other Enterprises, i.e. Medium Enterprises and Enterprises based on the
turnover criteria to maintain asset coverage ratio above 1.25.

UNIVERSAL BANKING IN BANK OF

BARODA

Bank of Baroda uses, FINACLE a core universal banking

solution from INFOSYS an Indian software company

This solution addresses the core banking, e-Banking,

treasury, wealth, CRM and cash management requirements
of universal, retail, corporate, community and private banks
worldwide.

Finacle has been architected out of years of experience with

global banks and offers several powerful and differentiating
features making it one of the most comprehensive, flexible
and scalable solutions in its class

Finacle 11E is the latest release of the award-winning Finacle

Universal Banking Solution

VIEWS FROM THE ANALYST

COMMUNITY ON FINACLE

Termed as a long term leader by forrester for offering

comprehensive banking functionalities
Positioned as the leader in Gartner Magic Quadrant for
International Retail Core Banking in Nov 2014
Noted as a leader by the IDC Financial Insights in its
new IDC Market Scape report
Finacle Mobile Banking and e-Banking solutions were
rated as Best-in-Class for security and authentication
capabilities and enterprise support, in a report
published by CEB TowerGroup analysts

CONCLUSION
Universal banking, as a global system of banking, is a
major innovation in the banking sector
It was designed to ensure a diversified, strong and
reliable banking that would stimulate the economic
growth of the nation
To enjoy the benefits of universal banking, a good
capital base for banks is essential.
The adoption and implementation of universal banking
system and other reforms that accompany it would
herald rapid and sustainable development and
economic growth in the country.
Universal banking has many prospects as well as
challenges confronting it.

THENKS 4 VIEW

FIN.