1. TOPIC: -

2. ACKNOWLEDGEMENT
I feel deeply indebted people who have guided me in this
project. It would have not been possible to make such an extensive
report without help, guidance, and inputs from them. This was all
the more significant, since the changes in the banking sector, were
of recent origin and relatively less material was available in the
form of books or articles or information on the net. Most of my
information source has been from professionals & Newspaper
articles.
Project guide:
MS. VINITA PIMPALE
I would firstly like to express my gratitude towards my guide
MS. VINITA PIMPALE for having shown so much of flexibility
and guiding in such a way that I was really learning the subject all
the time. She showed us a lot of openness in his approach and I
would like to thank him for her support in a way that has lead to
proper and effective learning.
Also, I am very grateful to all my friends and senior for
being by my side always. Without their help and motivation, it
would have been impossible to complete my project.
2

3. INDEX
CONTENT PAGE NO.
INTRODUCTION 4
EVALUATON OF BANKS 6
THE RISE OF BARODA SUN 8
THE INITIATIVES 10
PRODUCTS AND SERVICES 13
BOB CARDS 22
LOANS AND FINANCE 26
TREASURY OPERATION 40
INTERNATIONAL TRADE 43
I.T. INFRASTRUCTURE 45
QUESTIONAIRE 54
CONCLUSION 57
EXECUTIVE SUMMARY 59
BIBLIOGRAPHY 61
3

4. INTRODUCTION
Banks were India started on the British pattern in the beginning of
the 19th
century. In those days, all the banks were joint stock banks and a
large number of them were small and weak. At the time of the Second World
War, about 1500 joint stock banks were operating in undivided India, out of
which over 1400 were non-schedule banks. A quiet few of them were
managed by bad and dishonest management and naturally, there were a
number of bank failures. Hence the government had to step in and the
Banking Companies Act, 1949 (which was subsequently renamed as
Banking Regulation Act) was enacted which led to gradual elimination of
weak banks who were not in a position to fulfill the various requirements of
the Act. In order to strengthen the weak units and revive public confidence
in the banking system, a new section 45 was inserted in the Banking
Regulation Act in September 1960, empowering the Government of India to
compulsory amalgamate weak units with stringer once on the
recommendation of RBI.
Today banks are broadly classified into two:
• Schedule Banks and
• Non-schedule Banks.
Schedule banks are those banks, which are included in the
second schedule of the Reserve Bank Act, 1934. In terms of Sec.
42(6) (a) of the Reserve Bank of India Act, a bank should fulfill
the following conditions:
1. It must have a paid up capital and reserves of an aggregate value of
not less than Rs.5 lakh;
2. It must satisfy RBI that its affairs are not conducted in a manner
detrimental to the depositors;
3. It must be a state co-operative bank, a company under Companies
Act, 1956, an institution notified by the Central Government in this
behalf or a corporation, or a company incorporated by or under any
law in force in any place outside India.
4

5. The schedule banks enjoys certain privileges like approaching RBI for
financial assistance, refinance etc and correspondingly, they have certain
obligations like maintaining certain cash reserves as prescribed the RBI,
submission of returns etc. The schedule commercial banks in India comprise
of, state bank of India and its associates (8), the other nationalized banks
(19), foreign banks, private sector banks, co-operative banks and regional
rural banks. As the and of 30th
June 2003, there were 300 schedule banks in
India having a total network of 64,918 branches among them.
Non-schedule Banks are those joint stock bank s, which are not
included in the second schedule of the RBI act because of the failure to reply
with the minimum requirements for being scheduled. After the
nationalization of 14 commercial banks in 1969, no new private banks were
licensed by RBI in the country though there was no legal bank on the entry
of private sector banks. The Narsimham committee report of 1991, has
envisaged a larger role for private sector banks. In recognition of the need to
introduce greater competition with a view to achieving higher productivity
and efficiency of the banking system, RBI issued few guideline ins in
January 1993 for the entry of private sector banks Also the new bank after
being granted license under the Banking Regulation Act, shall be registered
as a Public Limited Company under the Companies Act, 1956. Subsequently
9 new commercial banks have been granted license to start banking
operations.
Over the last several years, the Government of India have been seized
of the problem of weakness that has gripped some parts of the banking
system. This weakness became apparent in the early 1990s when, following
introduction of internationally accepted prudential accounting norms, banks
were required to segregate their performing and non-performing assets and,
after providing for those, which are on-performing, build up a minimum
level of capital related to risk-weighted assets.
Save in a few cases wherein additional capital was needed to support
the growing volume of business, the need for repeated capital infusion is on
account of chronic weaknesses, which, have been caused by several factors,
both internal and external. One would necessarily need to look into their
ability to achieve a minimum level of competitive efficiency in order that
their operations become profitable on a sustainable basis. Any effort at their
restructuring will have to involve operational as well as financial
restructuring.
5

6. The banking system, which constitutes the core of the financial sector,
plays a critical role in transmitting monetary policy impulses to the entire
economy system.
EVALUATION OF BANKING INSTITUTION
It may be said that banking in its most simple form, is as old as
authentic historic. As early as 2000 BC. Babylonians had developed a
system of granting credit was widely prevalent. ‘Traces of credit by
compensation and by transfer orders are found in Assyria, Phoenicia and
Egypt before the system attained full development in Greece and Rome. The
books of the old Sanskrit lawgiver, Manu, are full of regulations governing
credit. He speaks of judicial proceeding in which credit instrument were
called for, interest of loans on bankers, users, and even of the renewal of
commercial papers.
In Rome, the bankers were called Argentarii, Mensarii or Collybistoe.
The banks were called Tabernoe Argentarioe. Some of the banks carried
business on their own account and others were appointed by the Government
to receive the taxes. They used to transact their business on similar lines as
those of the modern bankers. People used to settle their accounts with their
creditors by giving a cheque or draft 011 the bank. I r the creditor had also
an account at the same bank; the account was settled by an order to make the
transfer of such money from one name to another. T pay money by a draft is
known as prescribe and rescribere, and the draft was known as attribution.
The banker also received deposits and lent money. Loan banks were also
common in Rome. From this loan banks, the poor citizens received loans
without paying interest. They lent money for a period of three or four years
on the security of land.
During the early periods, although the banking business was mostly
done by private individuals, many countries established public banks either
for the purpose of facilitating commerce or to serve the Government. The
bank of Venice, established in 1157, is supposed to be the most ancient
bank. Originally, it was not a bank in the modern sense, being simply an
office for the transfer of the public debt.
History shows the existence of a ‘Monte’ in Florence in 1336. The
meaning of ‘Monte’ is given in Italian Dictionary, 1959, as “Monte – a
6

7. standing bank or mount of money, as they have in diverse cities of Italy.”
Banbrigge, an English writer, speaks about the “three bankers of Venice”
meaning the three public loans or Monti.
As carly as 1349, the business of banking was carried on by the
drapers of Barcelona. There it was subject to official regulation. The drapers
were not allowed to commence this business until they had given sufficient
security. During 1401, a public bank was established in Barcelona. It used to
exchange money, receive deposits and discount bills of exchange, both for
the citizens and for the foreigners. During 1407, the bank of Genoa was
established. The bank of Amsterdam was established in 1609to meet the
needs of the merchants of the city. It accepted all kind of specie on deposits.
These deposits could be withdrawn on demand or transferred from the
account of one person to another. The bank also adopted a plan by which a
depositor received a kind or certificate entitling him to withdraw his deposit
within six months this written orders, in the same manner as the modern
cheques. It is interesting note that most of the European banks now in
existence were formed on the model of the bank of Amsterdam.
The beginning of English banking may correctly be attributed to the
London Goldsmiths. They used to receive their customers valuables and
funds for safe custody and issue receipts acknowledging the same. These
notes, in course of time, became payable to bearer; demand and hence enjoy
considerable circulation. In fact, the Gold smiths note may be considered as
the precursor of the bank note. The business of the Goldsmiths got a rude
shock by the ill treatment of the Government of Charles II, under the cabal
ministry. In the word of Bagehot: “It had perpetrated one of those monstrous
frauds which are likewise gross blunders. The Goldsmiths, who than carried
on upon a trifling scale what we should now call banking, used to deposit
reserve of treasure in the “Exchequer” with the sanction and under the care
of the Government. But Charles II showed that it was undeservedly. He shut
up the “Exchequer”, would pay no one and so the Goldsmiths were ruined.
“However the ruin of Goldsmiths marks a turning point in the history of
English banking which led to the growth of private banking and the
establishment of the “Bank of England” in 1964.
This is true not only in the case of India but also of the other
countries. Although the business of banking is old as authentic history,
banking institutions have since then changed in character and content very
much. They have developed from a few simple wants to the complicated
mechanism of modern banking, involving the satisfaction of the whole
7

8. community by securing speedy application of capital slowly seeking
employment and thus providing the very life-blood of commerce.
THE RISE OF BARODA SUN
It has been a long and eventful journey for Bank of Baroda. And while
it stands at the threshold of history, looking forwards to its centenary
celebrations next year, maybe its time to turn back the pages of time, and
salute the great moments of its historical saga.
Bank of Baroda began its first page in the history of time on July 20th
,
1908 when Sir Sayajirao III Gaekwad, the Maharaja of Baroda, set up the
Bank in Baroda in a busy market street in Baroda. Two years later, in 1910,
the Bank opened its first office branch in Ahmedabad, and the rest as they
say is history. The Bank of Baroda has never looked back since then, and
today, it has grown to a total asset base of about Rs.1, 133bn (end-march
2006), with a network of over 2, 700 branches and offices and about 670
ATM’s.
Early 50’s was a day and age when international banking was not
considered fashionable or too risky for Indian companies, but Baroda
followed the Indian communities settled Abroad, especially the affluent NRI
Gujratis and set up its first international branch in Kenya 1953. Today, the
Bank has expanded its branches to 21 countries worldwide, spanning 4
continents.
Bank of Baroda was nationalized along with 13 other major
commercial Banks on 19th
July 1969. As India marched from an agricultural
economy to an industrial economy, to an international economy Bank of
Baroda also evolved at every stage. In the eighties. The Bank’s customer
focus initiatives led it to various innovations such as multi-service agency
for micro-credit, Gram Vikas Kendras, and launching Indias first ‘Bank
Card’, the ‘BOB Card’. Bank of Baroda branch offices opened up in various
parts of the country, and around the world. There were also strategic
takeovers and mergers of other smaller banks like with Hind Bank, Benaras
State Bank, Bareilly Corporation Bank etc.
In 2005, closer to its centenary, the Bank realized that it should opt for
a more drastic change in positioning itself to the world. There was a need for
8

9. revolution, a change of image. A rite of passage from the old to the new,
modern, and contemporary.
THE HARITAGE AND THE HEROES
The founder, Maharaja Sayajirao Gaekwad, with his insight into the
future, saw "a bank of this nature will prove a beneficial agency for lending,
transmission, and deposit of money and will be a powerful factor in the
development of art, industries and commerce of the State and adjoining
territories."
These words are etched into the mind, body and soul of what has now
become a banking legend. Following the Maharaja's words, the emblem has
been crafted to represent wealth, safety, industrial development and an
inclination to better and promote the country's agrarian economy. This
emblem shows a coin, symbolizing wealth, embossed with an upraised palm,
a safety cover for the depositor's money, with a cogwheel that promotes
industrial growth in tandem with the two corn ears that stand for the
progress of the staple agricultural growth in the country.
No history is complete without mention of its heroes, mostly ordinary
people, who turn in extra-ordinary performances and contribute to building
an institution. Over the years, there have been thousands of such people.
The Bank salutes these "unknown soldiers" who passionately helped to
create the legend of Bank of Baroda.
There were also the leaders, both corporate and royal, who provided
the vision and guided the Bank through trail blazing years, and departing,
left behind footprints on the sands of time. This Roll of Honor will be
incomplete without mention of men, of the stature of Maharaja Sayajirao
Gaekwad, Sampatrao Gaekwad, Ralph Whitenack, Vithaldas
Thakersey, Tulsidas Kilachand and NM Chokshi.
Between 1913 and 1917, as many as 87 banks failed in India. Bank of
Baroda survived the crisis, mainly due to its honest and prudent leadership.
This financial integrity, business prudence, caution and an abiding care and
concern for the hard earned savings of hard working people, were to become
the central philosophy around which business decisions would be effected.
This cardinal philosophy was over the 94 years of its existence, to become
9

10. its biggest asset. It ensured that the Bank survived the Great War years. It
ensured survival during the Great Depression.
THE INITIATIVE
Marketing Initiatives
The mid-eighties marked the beginning of the shift to a buyers` market.
The Bank orchestrated its business strategies around the centrality of the
customer. It diversified into areas of merchant banking, housing finance,
credit cards and mutual funds. A string of segment specific branches
entrenched operations in the profitable markets. Overseas operations were
revamped and structural changes intensified in the territories to cater to
second generation NRIs. Slowly but surely, the move to become a one stop
financial supermarket had been set in motion. Service delivery standards
were stipulated.
People Initiatives
Bank of Baroda has always had an immense faith in the infinite
potential of its people. This has been historically demonstrated in its
recruitment practices, developmental initiatives, placement processes and
promotion policies. Strategic HR interventions like, according cross border
and cross cultural work exposure to its managers, hiring diverse functional
specialists to support line functionaries and complementing the technical
competencies of its people by imparting conceptual, managerial and
leadership skills, gave the Bank competitive advantage. The elaborate man
management policies also made the Bank a breeding ground for business
leaders. The Bank provided around a dozen CEOs to the industry- men who
went on to build other great institutions. People initiatives were blended with
IR initiatives to create an effectively harmonious workplace, where everyone
prospered.
Financial Initiative
New norms for capital adequacy required new capital management
strategies. In 1995 the Bank raised Rs 300 crores through a Bond issue. In
1996 the Bank tapped the capital market with an IPO of Rs 850 crores,
despite adverse market conditions prevailing then, the issue was over
10

11. subscribed, reflecting the positive public perception of the Bank's
fundamental financial strength.
Digital Initiatives
Bank of Baroda pioneered the shift from manual operating systems to
a computerized work environment. Starting with ledgers, to ledger posting
machines, through ALPMs, the Bank graduated to the use of UNIX based
systems to Mainframes, to client server based Total Branch Mechanization
Systems. Today, the Bank has 1918 computerized branches, covering 70%
of its network and 91.64% of its business. Alive to the growing complexities
of an intensely competitive marketplace and the mounting expectations of
customers fuelled by this competition, the Bank reworked its distribution
strategy. It ventured beyond the brick and mortar delivery channel into
ATMs and the Omni BOB range of anytime, anywhere electronic channels
of PC banking, telephone banking.
Quality Initiatives
In its relentless striving for quality perfection, the Bank secured the
ISO 9001:2000 certifications for 15 branches. By end of the current
financial, the Bank is targeting 54 more branches for this quality
certification.
The Future
Revolutionary and discontinuous changes in the operating
environment are a stark reminder that business success is 'impermanent'. The
emergence of IT as a major driver for change, has accentuated the need to
initiate a major transformation program. The conversion to an IT savvy,
market driven bank will be a prerequisite to survival and growth. A major
and strategic step in hi-tech, was the establishment of the Integrated
Treasury branch, as a forerunner to full-fledged global treasury operations.
At Bank of Baroda, change is a journey. It has a beginning. There will
be no end. It will be a long and difficult march. The relocation to the
imposing Baroda Corporate Centre is a true reflection of the Bank's resolve
to move ahead of the times. It will not be out of place now, as it stands on
the threshold of a digital era, to echo the same sentiments that guided the
11

12. Bank in its platinum jubilee year - 'a promising future is the sequel to a
glorious past'.
BANK OF BARODA – NEW LOGO
BOB’s new logo is a unique representation of a universal
symbol. It comprises dual ‘B’ letterforms that hold the rays of the
rising sun. We call this the Baroda Sun.
The sun is an excellent representation of what our bank
stands for. It is the single most powerful source of light and energy
– its far-reaching rays dispel darkness to illuminate everything they
touch. At Bank of Baroda, we seek to be the sources that will help
all our stakeholders realize their goals. To BOB’s customers, we
seek to be a one-stop, reliable partner who will help them address
different financial needs. To our employees, we offer rewarding
careers and to our investors and business partners, maximum return
on their investment.
The single-colour, compelling Vermillion palette has been
carefully chosen, for its distinctiveness as it stands for hope and
energy.
BOB also recognize that our bank is characterized by
diversity. Our network of branches spans geographical and cultural
boundaries and rural-urban divides. BOB’s customers come from a
wide spectrum of industries and backgrounds. The Baroda Sun is a
fitting face for our brand because it is a universal symbol of
dynamism and optimism – it is meaningful for our many audiences
and easily decoded by all.
BOB’s new corporate brand identity is much more than a
cosmetic change. It is a signal that we recognize and are prepared
12

13. for new business paradigms in a globalize world. At the same time,
we will always stay in touch with our heritage and enduring
relationships on which our bank is founded. By adopting a symbol
as simple and powerful as the Baroda Sun, we hope to
communicate both.
PRODUCTS OF BANK OF BARODA
Some of the products provided by bank of Baroda in banking services are as
follows:
1. BARODA CURRENT ACCOUNT
Current Deposits plan is ideal for professionals and provides
flexibility through overdraft facility. The most basic, most flexible deposit
option for those whose transactions take the form of an everyday exercise.
Bank of Baroda's Current Deposits are the back-bone of all trading
activities.
2. BARODA FLEXIBLE RECURRING DEPOSIT ACCOUNT
Enjoy the facilities of a recurring deposit along with the flexibility of
varying monthly installments and a higher yield.
Key Benefits
• Regularizes savings by encouraging a saving habit.
• Loan/Overdraft facility up to 95% of the deposit amount.
• Provision for nomination.
3. CAPITAL GAIN ACCOUNT SCHEME, 1988
The Capital Gain Account Scheme primarily helps you avail of tax
exemptions from capital gains. It offers two types of accounts- Savings and
Term Deposits.
13

14. Key Benefits
• Tax exemption under section 54(F) (4) of Income Tax Act 1961.
• Provision for nomination
4. SAVINGS BANK ACCOUNT
The savings bank account key benefits may be updated as under
immediately: -
Key Benefits
• Simplest deposit option available to the depositor.
• Easy to operate. Terms and conditions kept lucid to facilitate a
layman's understanding. No hidden costs.
• Zero balance facility – Your Savings Bank Account with us remain
alive even when the balance reaches zero. This facility is only for
salaried employees in Central/ State Govt. Public & Private Limited
Companies, Agents of Life & General Insurance Corporations and
Students. Even for those receiving compensation from govt. for
acquisition of their properties.
5. NAGRIK BACHAT KHATA
No frills. No hidden charges. Just banking.
Bank of Baroda launches a new small savings product – Nagrik Bachat
Khata
The Indian economy has undergone a significant transformation since the
economic reforms in 1991 with the banking sector in the forefront. Nagrik
Bachat Khata is a product through which Bank of Baroda intends to extend
its services to a vast section of population by making banking easy and
convenient.
Key Benefits
• Services designed to cater to a vast majority of Indian population
• Banking simplified
14

15. • Open account with an initial amount of just Rs. 50/-
• Zero service charges for non-maintenance of a minimum balance of
Rs. 50/-
OTHER SERVICES:
REMITTANCES (THE BOB MONEY EXPRESS)
Business relations get strengthened and add to the trust when financial
dealings happen on time. The Bank of Baroda remittance facility
expedites payments and transfer of funds, saving you and your associates
from waiting endlessly for funds to get credited.
This facility is for both retail and corporate customers enabling
efficient and easy transfer of money. So no more delays in transfer of funds
typical of Banker's Cheque, Demand Drafts, Mail Transfers and Telegraphic
Transfers.
Key Benefits
• Can be used to transfer money to the beneficiary's account in the same
bank, or another bank or even to their residential/office address, thus
offering convenient options.
• This electronic remittance is the fastest way of transferring money
from one place to another, at no additional cost.
• Added convenience of hassle free and quick customer service.
• The facility is available at 345 branches across 53 centres in India
inclusive of all branches in Ahmedabad, Bangalore, Chennai, Delhi,
Hyderabad, Mumbai, and Pune.
COLLECTION SERVICES
Outward Bills for Collection:
All branches of Bank of Baroda have the facility of collecting
Cheques, Demand Drafts, Interest Warrants, Dividend Warrants, Refund
15

16. Orders, Clean Bills and Documentary Bills from customers and various
centres. All Cheques and other instruments are collected into properly
introduced accounts and sent for collection on the day of receipt from the
customers or the next working day.
Time Bound Collection:
All branches of Bank of Baroda are prompt in terms of the
collections and forwarding of cheques and other instruments. For metro
cities, when financial instruments are presented in a branch, the proceeds are
credited to the customer's account on the same day in the following week.
For state capitals, (and centres with more than 100 branches), amount is
credited only after 10 days. If these instruments are not collected within 14
days of lodgment, interest @ 2% per annum over savings bank rate is paid
and is credited to the customer's account, without the customer having to
claim it.
Branches also accept requests for collection of Loan Certificates /
FDRs issued by Joint Stock Cos.; prize money of Lottery Tickets, Foreign
Currency Notes etc. The bank levies service charges as stipulated from time
to time.
Inward Bills for Collection:
Bills of Exchange, Promissory Notes, Hundi's etc. (Clean /
Documentary), payable locally but received from outstation branches / banks
/ parties are treated as "Inward Bills for Collection". Also, Bills received
from Bank of Baroda branches and from other banks, directly from drawers
or outstation parties are treated as Usance (?) Bills.
BOB Quick:
The Funds collected in this offering are credited to the customer's
account within a guaranteed period of 7 days. Bank of Baroda's BOB
Quick ensures a better collection service, which creates new avenues of
income and ensures better investment of funds. All cheques amounting to
Rs. 25000/- and above are drawn on select banks and are eligible for "Quick
inter station clearing". Rs. 50/- per packet is charged for courier charges
with an additional but nominal collection charge.
16

17. MULTI CITY CHEQUE
Multi City Cheques are special series cheques issued by the banks
customer to their clients. The cheques will be payable at par, like local
cheques, in the Multi City Cheque centres of the Bank
Who Can Avail The Facility
This facility is being offered to our Current account customers at 201
branches in 16 cities maintaining a balance of over Rs.50, 000/-.
Facilities Provided
The customer will get a personalized "Multi City" cheque book (at par
cheque books) from which he can issue AT PAR cheques to his clients
situated at MCC centres.
Transaction Limits
Cash Payment of multi-city cheque is not allowed. For other transactions
there are no limits.
Charges
Being offered "Free of Charge" at present.
Multi-City Cheque Book
The Cheque book shall have the following features:
1. There would be a notation on top of the cheque as "MULTI-CITY
CHEQUE". Similarly, the bottom of left section of the cheque will
contain the statement "Payable at par at identified branches at centers
listed overleaf except the centre of issue".
17

18. 2. The customers must be advised that they must not issue multi-city
cheques for making local payments.
CASH MANAGEMENT & REMITTANCES
Bank of Baroda Cash Reach:
A product that enables electronic transfers/ cash remittances at
designated bank branches through a specialized network of branches. This
facilitates the availability of funds and credits in your account on the same
day.
Dial Bank of Baroda:
Bank of Baroda also offers 24 hours tele-banking service through
landline/ mobile phones, facilitating the following:
• Balance Enquiry,
• An Enquiry into the last 5 transactions, and,
• Bank statements on fax for the last 2 months.
NRI SERVICES
BOB offer a red carpet welcome to all NRIs to bank with us. As a
premier nationalized bank in India, with comprehensive banking experience
world-wide, and by virtue of our consistent track record of profit making
since 1908, BOB are confident of meeting all your banking requirements.
BOB’s wide network of foreign branches, offices and Correspondent
Relations at convenient business locations all round the world, which is the
largest among any bank in India, will ensure a smooth and safe banking
experience.
BOB continue to cherish our rich ethnic traditional values and culture,
during our personal interface. Yet BOB are speedily repositioning ourselves
18

19. in the e-millennium era of banking in India, to take care of your changing
needs and expectations. BOB’s information technology strategies are
directed towards enabling us to provide you with a state of the art customer
convenience, thereby facilitating a global banking experience.
BOB understand you, the NRIs, your needs and immensely value your
patronage and would like to extend to you our bouquet of products and
services.
OFFSHORE BANKING
Give your FOREX earnings a safe home
In an unpredictable financial world, your well earned money needs a
safe home. A home where it can grow. Bank of Baroda takes this
opportunity to announce the opening of its first Offshore Banking Unit
(OBU) in India at SEEPZ, Mumbai
With years of experience and expertise in overseas banking we are
just one of the few banks that have been granted permission by the
Government of India to operate OBU within the country. This comes in
addition to our already existing OBUs in Mauritius and Bahamas.
So, when you invest your well-earned FOREX with us, you get the
expert opinions and services of a bank, which has an international presence
in 16 countries through 61 offices and represented by 2800 fully equipped
branches spanning the globe.
CORRESPONDENT BANKING
The extensive worldwide network of branches of Bank of Baroda
offers Correspondent Banking services to the Indian Banks as well as
banks from other countries.
19

20. Our branches are capable of providing the services that an
international correspondent Bank can offer. All the branches of the Bank are
well equipped to handle the business of Correspondent Banking.
The New York, Brussels and London Branches of the Bank are
equipped with latest technology and are having trained and experienced staff
for handling the maintenance of Nostro accounts in US$, Euro and GBP
respectively.
The overseas presence of the Bank is further supported by a large
number of correspondent Banks (more than 500) which gives Bank of
Baroda access to every corner of the Globe.
The main services provided are:
1. Collection of bills both Documentary and Clean.
2. Advising / confirming of L/Cs opened by Indian Banks.
3. Discounting of Bills drawn under L/Cs as well as outside L/Cs.
4. Maintenance of foreign currency accounts (Nostro in US$, Euro, GBP
at New York, Brussels and London respectively) for settlement of
transactions (Link).
5. Making foreign currency payments/ remittance on behalf of customers
of Indian Banks.
RURAL BANKING SERVICES
Strengthening the rural economy
Rural India contributes a major chunk to the economy every year. To
give this sector a stronghold on finance and to enable economic
independence, Bank of Baroda has special offerings that extend credit
facilities to small and marginal farmers, agricultural labourers and cottage
industry entrepreneurs.
20

21. With the objective of developing rural economy through promotion of
agriculture, trade, commerce, industry and extending credit facilities
particularly to small and marginal farmers, agricultural labourers and small
entrepreneurs, Bank of Baroda, over the years, has reached out to larger part
of rural India. We extend loans for agricultural activities and a host of
services for farmers well tuned to the rural market, and aim to make a Self
Reliant Rural India.
Faster technology for better service
Baroda Internet Banking / Baroda Mobile Banking, our latest
Internet and Mobile banking initiatives enable you to operate your account
just as you would in any of our branches. You can through the Internet check
your balance, request for chequebooks and print account details.
Choose from our various products and services, that we sincerely feel
will put a smile on your face; an investment we would like to bank on
forever.
APPRAISAL & MERCHANT BANKING
Bank of Baroda provides its assistance to corporate customers to
assess the value of their holdings, in syndicating loans and in consultations
for Merchant Banking purposes.
Appraisal:
Bank of Baroda carries out credit and merchant appraisals of all types
of business ventures including infrastructure projects by our specialized
team of officials at a reasonable cost.
Loan Syndication:
The bank also assists in loan syndication for all kinds of business
ventures when a tie-up of business sources is required.
21

22. Other Consultations:
Our team is highly capable of advising on parameters of feasibility &
viability of an existing / proposed project and suggests measures, if required,
for improvement of the business enterprise.
CARDS PROVIDED BY BANK OF BARODA
DEBIT CARD
The Bank of Baroda International Debit Card is accepted at over
10000 Visa Electron ATMs in India and 850000 ATMs worldwide. The
card is also accepted at any 100000 merchant outlets in India and
around 13 millions globally. The card enables you to enjoy the
convenience of cash-less purchasing power without the fear of
overdrawing your account
Key Benefits
22

23. • Take advantage of the most widely accepted card and be able
to withdraw from any ATM displaying the VISA logo, in India
and abroad.
• At VISA Electron merchant shops, it can also serve as your
electronic purse, and money gets debited instantly from your
account, as you pay.
• The Card allows you to get mini-statements from Bank of
Baroda ATMs, or to check the balance in your account,
avoiding visits to even our nearest branches.
BOBCARD EXCLUSIVE
This card is welcomed at over 29 million Merchant Establishments
and over 8, 00,000 ATMs worldwide. This card is affiliated with
MasterCard International and is very popular amongst the Bob cards holder.
ELIGIBILITY
Individual: Annual income of Rs. 1, 00,000 or more.
Company: Paid-up capital of Rs. 5, 00,000 or more.
FEATURES:
· Revolving credit: Upto Rs. 40,000 per month.
. Cash withdrawal: Rs.10, 000 per month.
. Service charge on revolving credit limit: 1.99%
· Service charge on Cash withdrawal: 2% or Rs.100 whichever is higher
23

24. · Service Charge on ATM Cash withdrawal: 2.5% or min. Rs.100
(Domestic), 3% or min. Rs.150 (Abroad).
. Insurance: Free accidental insurance of Rs. 5, 00,000, In case of air-
accident Rs. 10, 00,000.
. Spouse insurance: Rs. 2, 00,000 (need not be a bob card holder).
. Baggage insurance: Rs.10, 000 (for air travel only).
. Minimum payment: 5% per month.
· Comprehensive monthly statements.
· Zero interest period.
Cash can also be withdrawn at any branch of BOBCARDS Ltd. or at any of
the specified branches of Bank of Baroda
BOBCARD CORPORATE GLOBAL
This credit card is affiliated with visa international & valid
throughout the world all over 30 million establishments and 8, 00,000 Visa
ATM’s. It can only be applied by a corporate.
ELIGIBILITY
Individual: Not applicable.
Company: Turnover of Rs.1 crore or more.
FEATURES
· Revolving credit: Upto Rs.3, 00,000 per month
. Cash withdrawal: Rs.15, 000 ONWARDS
. Service charge on revolving credit limit: 1.99%
· Service charge on Cash withdrawal: 2% or Rs.100 whichever is higher (At
Bobcards/Bank of Baroda branches).
· Service Charge on ATM Cash withdrawal: 2.5% or min. Rs.100
(Domestic), 3% or min. Rs.150 (Abroad).
24

25. . Insurance: Free personal accidental insurance of Rs.7, 50,000, In case of
air-accident Rs. 15, 00,000.
. Spouse insurance: Rs.2, 00,000 (need not be a bobcard holder).
. Baggage insurance: Rs.10, 000 (for air travel only).
. Minimum payment: 5% per month.
· Comprehensive monthly statements.
· Zero interest period.
Cash can be withdrawn at any branch of BOBCARDS Ltd. or at any of the
specified branches of Bank of Baroda.
FEES: FREE FOR FIRST YEAR (Principal Rs.1500)
BOBCARD EXCLUSIVE (FOR TODAY'S WOMAN)
BOBCARD Exclusive Woman Card is a tribute to the glorious women
of India who are acclaimed for their contributions to the human civilization.
BOBCARDS presents this Card to offer its gratitude to the great women
souls of the land. Exclusively designed for the woman of today, this card is
packed with great features and benefits.
This card is welcomed at over 29 million Merchant Establishments
and over 8, 00,000 ATMs worldwide. This card is affiliated with
MasterCard International and is very popular amongst the Bobcards holder.
ELIGIBILITY
Individual: Annual income of Rs. 75,000 or more.
25

26. FEATURES
· Revolving credit: Upto Rs. 30,000 onwards.
. Cash withdrawal: Rs.10, 000 per month.
. Service charge on revolving credit limit: 1.99%
. Baggage insurance: Rs.10, 000 (for air travel only).
. Minimum payment: 5% per month.
· Comprehensive monthly statements.
In case of medical emergency for a cardholder, his spouse or a family
member, the cardholder can draw cash up to a maximum of Rs.15, 000 from
any of our specified branches other than at the city of residence subject to
production of satisfactory evidence. This facility is over and above the cash
advance facility of Rs.10, 000 p.m.
Loan to Small & Medium Enterprises
A) SCHEME FOR GRANT OF SHORT TERM LOAN TO SMALL
AND MEDIUM SIZED ENTERPRISES
Enterprises GROUP:
Small and Medium-sized corporates, business and trading houses (including
partnership firms).
ELIGIBILITY CRITERIA
• Continuous credit rating of at least B+ for the last three years
• Latest Balance Sheet etc. should be available.
• Satisfactory financial performance in terms of sales / turnover and
profits. Negative variance, if any, should not be more than 10%.
• Satisfactory dealings with the Bank for at least five years.
• No major inspection / audit irregularities.
LOAN AMOUNT:
26

27. Upto 25% of the existing Fund based Working capital limits (depending on
the Credit Rating), subject to a minimum of Rs. 10 lakhs and maximum of
Rs. 250 lakhs.
PERIOD:
Not exceeding 180 days – minimum 90 days.
PURPOSE:
To meet temporary shortfall / mismatch in liquidity, for meeting genuine
business requirements only.
SECURITY
• First charge / Equitable mortgage of fixed assets of the company /
firm or extension of existing first charge / equitable mortgage of fixed
assets, ensuring that there is a minimum asset cover of 1.50.
• Extension of Charge on current assets for the additional facility
ensuring that adequate drawing power is available.
RATE OF INTEREST:
0.5% below the existing rate on working capital limits.
B) SCHEME FOR GRANT OF MEDIUM TERM LOAN TO SMALL
AND MEDIUM SIZED ENTERPRISES
NAME OF THE SCHEME: SME Medium Term Loan
ENTERPRISES GROUP:
Small and Medium-sized corporates, business and trading houses (including
partnership firms).
27

28. ELIGIBILITY CRITERIA
• Continuous credit rating of at least B+ for the last three years.
• Latest Balance Sheet etc. should be available.
• Satisfactory financial performance in terms of Sales/turnover and
profits. Negative variance, if any, should not be more than 10%.
• Debt-equity ratio should not be higher than 2.5:1 and average DSCR
should be not less than 1.5:1.
• Satisfactory dealings with the Bank for at least Three years.
• No major inspection / audit irregularities.
LOAN AMOUNT:
Upto 25% of the existing fund based Working capital limits (depending on
the Credit Rating), subject to a minimum of Rs. 25 lakhs and maximum of
Rs. 500 lakhs.
PERIOD:
Not exceeding –36- months, to be repaid in equal quarterly or half-yearly
installments.
PURPOSE:
To augment enterprise’s working capital gap and to help in improvement of
current ratio and also for meeting genuine business requirements. The
facility will also be available for repayment of secured and unsecured Loans
of other banks or institutions, but not for any purpose, which is not related to
the enterprises activity.
SECURITY:
First charge / Equitable mortgage of fixed assets of the Company / firm or
extension of existing first charge/ equitable mortgage of fixed assets,
ensuring that there is a minimum asset cover of 1.50.
RATE OF INTEREST
• 0.5% - 1.0% over the Bank’s BPLR, only for the additional Loan to be
granted under the Scheme.
28

29. • Prepayment penalty of 1%, if loan is prepaid within -24- months of
draw down.
PROCESSING CHARGES:
0.1% of the amount of loan, with a minimum of Rs. 25,000/- and maximum
of Rs. 50,000/-.
BARODA PERSONAL LOAN
A wedding in the family, maybe it's high time you
surprised your spouse with a priceless gift. Or you simply
need to pamper your family with an extended vacation.
These are the times when you may need a helping hand.
That's when you can bank on us. Bank of Baroda's
Personal Loan offers financial help to meet your personal
requirements.
Key Benefits
• Helps you take care of all kinds of expenses at a short notice.
• The loan covers medical expenses, marriage expenses, travel
expenses, honeymoon holiday expenses and any other personal use.
BARODA PERSONAL COMPUTER LOAN
The number of businesses and homes depending on
computers for a more efficient and systematic, day to day
management of activities is on the rise. Whether it helps
your kid's education or augments your business activities,
or provides as a source of information and entertainment
at home, computers have proved to be indispensable.
29

30. Although computers are getting cheaper by the year, they still come with a
considerably high price tag. Bank of Baroda's Personal Computer Loans
enable you to finance your dream PC and also provide for the purchase of
legal software.
Key Benefits
• Provides adequate finance to purchase a branded PC of your choice.
• Dual finance provision for PC (up to Rs. 1 Lakh) as well as software
(up to 20,000/-).
BARODA DESH VIDESH YATRA LOAN
Bank of Baroda introduces Baroda Desh Videsh
Yatra Loan, a unique loan product specially designed
to cater to the needs of individuals to meet tour and
travel expenses for visiting any place in India and
abroad.
Key Benefits
• Travel now and pay later. Repayment in maximum 36 EMIs
• Simple procedures / formalities.
• Loan can be availed Upto Rs. 10.00 Lacs.
• Available for undertaking pleasure trips within the country as well as
for overseas.
• Caters to the needs of individuals (salaried, self employed,
professionals and individuals engaged in business/industry)
• No margin money up to Rs. 50, 000.
BARODA EDUCATION LOAN
30

31. Education is the most important investment one makes in life. Higher studies
and specialization in certain fields call for additional financial support from
time to time. Whether you are planning school education (nursery to
standard XII) of your child, pursuing a graduate or post-graduate degree, the
Bank of Baroda Education Loans, can help finance your ambitions and
goals.
ADVANCES AGAINST SHARES/IPOS
i) Advances against Shares to Individuals: -
Bank of Baroda has introduced scheme of Advances to individuals against
shares for genuine individual investors. The maximum amount of finance
that can be granted to an individual is to the extent of Rs.20 lakh, subject to
minimum margin stipulation from time to time.
ii) Bank Finance to employees to buy shares of their own companies: -
In view of a number of companies offering Employee Stock Options
(ESOPs) and employee quota in their IPOs, Bank of Baroda has introduced
scheme to extend finance under ESOP/ IPO to employees to buy shares of
their own companies to the extent of –12- months salary of the employee
with a maximum of Rs. 10 Lacs subject to regulatory guidelines on margin,
which is presently as under: -
a. Initial Public Offering (IPO): 50% margin
b. Employees Stock Option Plan (ESOP): 10% margin.
BARODA VAIBHAV LAKSHMI LOAN
Bank of Baroda presents a unique Retail Loan product
Baroda Vaibhav Lakshmi specially designed for women
employees. A loan product that addresses the varied needs
of working women.
Key Benefits
31

32. • Takes care of all kinds of expenses.
• Loan can be availed as term loan or overdraft facility without any
security.
• Loan can be repaid in maximum 36 EMIs.
BARODA LOAN TO PENSIONERS
We all retire from our jobs at some point in life. The
continuous toiling and hard work have made most of our
dreams come true and have also provided for our loved
and dear ones. Yet there remain some dreams unfulfilled,
some personal dreams that you need to achieve on your
own.
Key Benefits
• Maximum amount of loan - Rs. 1,00000/- or 10 times of your last
monthly pension, whichever is lower
• Personal accidental death Insurance cover of up to Rs. 75000/-
• This loan facility is available at all the branches of the bank, enabling
you the convenience of the Bank of Baroda branch near you.
BARODA MARRIAGE LOAN
The marriage of your daughter or loving sister is usually
one that you want to celebrate with pride and joy. When
it is the most important day of her life, and yours, you
want to give her the best memories of the day to cherish.
You want to make sure that all arrangements are made
well in advance and every comfort meticulously provided
for.
32

33. The Marriage Loan from Bank of Baroda is the ideal way to provide for
such occasions. Working women can also avail of this loan to meet expenses
related to their marriage.
Key Benefits
• The Baroda Marriage Loan gives you the freedom of a personal loan,
as high as Rs. 2 Lakhs.
• Ease of repayment in 60- months, in Monthly/Quarterly/Half-yearly
installments or under the EMI (Equated Monthly Installments) option.
HOUSING LOANS TO NRIS / PIOS
Bank of Baroda presents yet another innovative product
offering in the form of Baroda Housing Loans to
NRIs / PIOs, a unique housing loan facility designed
specially for Non Resident Indians (NRI) and Person of
Indian Origin (PIO).
The Home Loans offering from Bank of Baroda essentially provides NRIs
and PIOs for finance in relation to the purchase of a new house, construction
of a new dwelling unit, financing of an old dwelling unit, for repair /
renovation / extension of your existing house, purchase of a plot and
repayment of loans from other housing finance companies.
Key Benefits
• A loan product tailor-made for NRI / PIO needs
• Opt for Flexi Rate plan to hedge the interest rate risk by breaking the
loan into two separate accounts
• Free property insurance and personal accident insurance
33

34. • No pre payment / foreclosure charges for part as well as full
prepayment (when repaid from own sources by the borrower)
BARODA HOME IMPROVEMENT LOAN
Bank of Baroda brings to you a unique loan product. A
loan for Repairs / Renovations / Improvement / Extension
of Home and for Furniture, Fittings & Fixtures.
Key Benefits
• Loan available for repairs / renovation / improvement / extension of
the existing house.
• Loan available for purchase of furniture / fixtures / furnishing / other
gadgets such as fans, geysers, air conditioners etc. required, to:
o Our existing housing loan borrowers
o New borrowers
• Free Credit Card:
Free Credit Card (complementary for first year) will be issued to
borrowers with loan limit above Rs.2/-lacs. Type of card will depend
on loan limit as under
Loan limit Type of card
Above Rs.2/-lacs - Up to Rs.5/-lacs Paras International
Above Rs.5/-lacs - Up to Rs.10/-lacs Exclusive
• Concessions in respect of Group borrowers:
Group borrowers and employees of approved organizations will be
eligible for following concessions for loans considered for repairs
necessitated on account of natural calamities such as floods, cyclones and
earth quakes etc.
34

35. 1. Rate of Interest - Reduction Upto 0.25%.
2. Margin - After satisfying about the reasonability of project cost,
the margin may be reduced by a maximum of 5%.
3. Cross guarantees - cross guarantees may be allowed.
FOREIGN CURRENCY LOAN (FCNR’B)
• Currencies for loan:
US $, Euro €, Japanese ¥ and Sterling £
• Who is Eligible:
This facility would be available to all our existing Corporate / non
corporate clients
• Purpose:
1. Working Capital.
2. Loan for capital expenditure such as purchase of new plant and
machinery, acquisition of equipments and other assets.3.
• Tenor:
The facility can be allowed for a period from 3 months to 36 months
subject to periodical rollover.
• Rate of Interest:
Interest rate would be linked to LIBOR of relevant currency + spread
depending on credit rating, payable at monthly rests.
• Commitment Fee:
1% p.a. of unutilized amount of FCL if it is not availed within 30 days of
sanction.
• Prepayment charges:
1% on the loan amount for the remaining period
35

36. • Processing Charges:
1. Working Capital- Rs. 20,000/-
2. Term Loans- as applicable for rupee TL
FINANCE PROVIDED BY BANK OF BARODA IS AS
FOLLOWS:
AGRICULTURAL FINANCE SCHEMES:
Agriculture being the backbone of the Indian Economy, Bank of
Baroda, is contributing significantly in accelerating the pace of rural
development by providing finance to farmers by way of following
agriculture products.
1. Baroda Kisan Credit Card (BKCC) - Empowering the farmer: The
BKCC facility designed exclusively for the benefit of the farmers
aims to provide them the opportunity to manage and utilize their
funds in the manner they deem fit. BKCC provide adequate and
timely support to farmers for their production needs e.g. purchase of
quality inputs, investment requirements like purchase of agriculture
implements/tractor etc, farming expenses towards farm maintenance,
unforeseen family expenses (consumption) and maintenance of non-
farm activities.
2. Purchase of agricultural implements including indigenous improved
ones being utilized for field operations including
harvesting/sorting/grading, for not only to farmers, but also for land-
less labourers.
3. Purchase of heavy agricultural machinery like tractors, power-tillers,
etc. either by farmers having larger holdings with irrigation facilities
or group of farmers with irrigation facilities.
4. Purchase of second hand tractors to provide opportunity to those
interested farmers in dry land farming or having a small land holding
who cannot afford to purchase new tractors.
5. Production credit for raising various crops from the point of
preparatory tillage till harvesting, for land owners or permanent
tenants or leaseholders or share croppers.
36

37. 6. Farm produce marketing loan against pledge of receipt of warehouse
or cold storages to the farmers.
7. Development of irrigation facilities, covering sinking of wells/bore
wells, lifting of water by installation of pump sets, transporting of
water through field channels, water saving system like drip
irrigation/sprinkler irrigation etc. for farmers. Energizing of pump
sets through Non-conventional Energy Resources like windmill,
solar energy etc. or installation of generation sets is also covered.
8. Extending working capital needs to dealers of dealers/
distributors/traders of agricultural inputs like seeds, fertilizers etc.
live stock inputs like cattle feed, medicine etc. and supply of
agriculture machinery/ irrigation system.
9. Extending Custom services to farmers by way of machinery like
tractor thresher etc. Equipment on rental basis and maintenance of
cold storage /godowns for hiring, by individuals, institutions /
organisations.
10. Providing employment to the unemployed technical personnel
through Agro service Centre.
11. Setting up of Agri clinic and Agribusiness centre by agriculture
graduates.
12. Construction farm building/structures like cattle shed, tractor shed,
thrashing yards, fencing etc. by individual farmer or firms engaged
in agricultural activity and is of long term nature.
13. Construction/Expansion/modernization/Renovation of Rural
Godowns/Cold storage.
14. Developments of land like bunding, terracing, leveling etc. and
reclamation of saline, alkaline, ravine soils by farmer or organization
like co-operative societies etc.
15. Financing Scheduled Caste & Scheduled tribes, who have been
provided/allotted land by the State Govt, can be financed for
purchase of farm implements irrigation pair of bullocks etc.
EXPORT CREDIT (RS)
37

38. 1. RUPEE EXPORT CREDIT (PRE-SHIPMENT & POST-
SHIPMENT):
BoB offers both pre and post shipment credit to the Indian exporters
through Rupee Denominated Loans as well as foreign currency loans in
India.
Exporters having firm export orders or confirmed L/C from a
recognized Bank can avail the export credit facilities from BOB provided
they satisfy the required credit norms. The details of the credit norms can be
obtained from the nearest authorized branch of the Bank.
Rupee export credit is available for a maximum period of -180- days
from the date of first disbursement. The corporates, if required can book
forward contracts in respect of future export credit drawals.
2. EXPORT BILL REDISCOUNTING:
BOB offers financing of export by way of bill discounting of export
bills to provide post shipment finance to the exporters at competitive
international rate of interest. This facility is available in -4- currencies i.e.
US$, Pound Sterling, Euro and JPY.
The export bills (both Sight and Usance) can be purchased/ discounted
provided they comply with the norms of the Bank/ RBI.
All exporters are eligible to cover the bills drawn under L/C, non-credit
bills under sanctioned limits under the Bill discounting Scheme.
3. IMPORT FINANCE
Bank of Baroda provides various types of funding/ services to the
importers for facilitating the imports in the country. All the facilities are
38

39. subject to the prevalent rules of the Bank/ RBI guidelines. The various
facilities provided are:
• Collection of import bill.
• Financing of import by way of Foreign Currency Loans
• Issuing Guarantees etc. on behalf of importers.
COLLECTION OF IMPORT BILLS:
The import bills are collected through the 116 authorized branches at
very competitive rates. The Bank has correspondent relationship with
reputed International Banks throughout the world and can provide the
services to importers who may be importing from any part of the globe.
LETTER OF CREDIT:
Bank of Baroda offers L/C facility for the purchase of goods in the
international market. Being a well-known international Bank of repute, the
L/Cs of the Bank of Baroda are well accepted in the International market.
With the Letter of Credit of Bank of Baroda, importers can build up
better trust/ confidence in their suppliers and develop other business
relationship at a much faster pace.
The vast network of Bank's overseas branches/ subsidiaries and
Correspondent Banks world-wide facilitate prompt & efficient services to
the importers.
The L/C facility can be granted to the importers after assessing their
requirement/ credit worthiness/ financial strength and other parameters being
to the satisfaction of the Bank.
4. BANK GUARANTEES:
Bank of Baroda on behalf of importers/ other customers issues
guarantees in favour of beneficiaries abroad. The guarantees can be both
Performance and Financial.
TREASURY OPERATIONS
39

40. In the changing economic environment of the country in particular and
the globe in general, Bank of Baroda was the premier public sector bank in
India to set up a Specialized Integrated Treasury Branch (SITB) in
Mumbai and the integrated approach initiated by the Bank in its treasury
operations is now being emulated by other peer banks.
Bank of Baroda has consciously adopted a focused approach towards
improving efficiency and profitability by successfully integrating the
operations of different financial markets, viz. Domestic Money, Investments,
Foreign Exchange and Derivatives and has made its mark as an important
player in the market-place.
The SITB at Mumbai, equipped with the State-of-the-art technology,
with modern communication facilities, handles all types of financial
transactions, both for managing its resources and deployments and effective
compliance of regulatory requirements.
DOMESTIC OPERATIONS
Bank of Baroda has set up dedicated desks at the SITB, headed by
experienced professionals, for undertaking various types of treasury
activities in different financial markets. Apart from activities pertaining to
management of funds and liquidity, the domestic treasury also handles
financial instruments like:
• Commercial Papers (CP)
• Certificate of Deposits (CD)
• Government Securities
• Treasury Bills (TB)
• Bonds and Debentures
• Equities and various other derivatives.
The products and services offered by SITB cater to the inter-bank market as
well as to the Corporate customers of the bank. The Bank is an active
participant both in the inter-bank market and the corporate for all the
products.
Bank's under mentioned branches are authorized for this purpose and
prospective investors may contact for our services:-
40

41. City Branch Name Telephone No.
Ahmedabad Navrangpura 7541494, 7540095, 7545504
Chennai North Beach Road 25232320, 25232233, 25213811
Kolkata India Exchange 22214468, 22206076, 22206077
Mumbai Fort University 22672372, 22670620, 22670614
Mumbai P M Road 22642074, 22662343, 22663348
New Delhi Parliament Street 23321849, 23325557, 23328666
As an OTC product, the bank also arranges for hedging interest rate risks or
currency risks by offering Interest Rate Swaps (IRS), Forward Rate
Agreements (FRA) or Currency Swaps, with reference to acceptable
benchmark rates. Bank of Baroda also offers derivative products like
Options and Swaptions for obtaining protection against adverse movements
in exchange and/or interest rates, while retaining the advantage of higher
profit from favourable movements.
FOREX OPERATIONS
Bank of Baroda, one of the major public sector banks in India having
a strong global presence with a wide network of 61 overseas offices,
including those of subsidiaries, spread over 16 countries, is considered as a
market leader in foreign exchange operations in India. At present the Bank is
having branches / offices in countries like USA, UK, Belgium, South Africa,
Hong Kong, UAE, Oman, Fiji Islands, Mauritius, Seychelles, Bahamas,
Guyana, Kenya, Uganda and Zambia
The Bank has completed fifty years of operations in overseas
territories and is poised to expand its reach to countries like Tanzania and
China, apart from consolidating its overseas operations in those countries
where the bank has already made its presence felt.
The modern state-of-the-art dealing room at its Specialized Integrated
Treasury Branch (SITB) at Mumbai provides the necessary wherewithal to
its 95 designated branches across the length and breadth of the country
authorized to handle foreign exchange business of its clientele.
41

42. Through its large network of authorized branches, the bank caters to
the foreign exchange needs of its clientele engaged in export and import
trade and the SITB provides rates for conversion of all major world
currencies like U S Dollar, Sterling Pounds, Euro, Swiss Francs, Japanese
Yen and other exotic currencies. The services to the customers of the Bank
include hedging of foreign currency risks by providing forward covers and
various derivatives product.
INTERNATIONAL TREASURY
Bank of Baroda has a strong presence in the Treasury Market in India
as well as abroad. The overseas Money Centre Branches undertake the Forex
treasury operations on behalf of the customers. All the Forex treasuries at the
overseas money center branches are equipped with state of art technology,
highly experienced and motivated staff with professional skills. These
branches deal in all the major international currencies i.e. US$, GBP, Euro,
Yen as well as other currencies. These branches undertake the following
treasury related activities:
• Forex Inter Bank Placements/ Borrowings
• Sale & Purchase of currency on behalf of customers
• Forward Cover Bookings
• Cross Currency Swaps
• Interest Rate Swaps (IRS)
• Forward Rate Arrangements (FRA's)
• Forex Money Market Operations.
INTERNATIONAL TRADE
EXTERNAL COMMERCIAL BORROWINGS
The foreign currency borrowings raised by the Indian corporates from
confirmed banking sources outside India are called "External Commercial
Borrowings" (ECBs). These Foreign Currency borrowings can be raised
42

43. within ECB Policy guidelines of Govt. of India/ Reserve Bank of India
applicable from time to time. ECBs includes the following:
1. Commercial Loans
2. Syndicated Loans
3. Floating/ Fixed rate Notes and Bonds
4. Import loans, loans from the export credit agencies of other countries.
5. Foreign Currency Convertible Bonds (FCCBs) before conversion
6. Commercial loans from multilateral agencies such as IFC, ADB, CDC
etc.
The ECBs route is beneficial to the Indian corporates on account of
following:
1. It provides the foreign currency funds, which may not be available in
India.
2. The cost of funds at times works out to be cheaper as compared to the
cost of rupee funds.
3. The availability of the funds form the International market is huge as
compared to domestic market and corporates can raise large amount
of funds at competitive prices depending on the risk perception of the
International market.
FOREIGN CURRENCY CREDITS
The Foreign currency denominated credit facilities are granted to the
Indian corporations in India as well as at the Money Centre Branches
abroad.
Corporations interested in raising foreign currency funds both in India
and abroad may contact in India the branches they are dealing with, the
Position Maintaining Offices (PMO's/ Authorized Foreign Exchange
Branches), Corporate Banking Branches, Industrial Finance branches or any
of the major branch in the city. They may also contact the Bank's Regional
43

44. Offices/ Zonal Offices for the required information/ guidelines. They may
contact the International Division, Central Office at Mumbai on the
following address:
Corporate Office
Bank of Baroda, Baroda Corporate Centre,
International Division,
Plot No C - 26, G - Block, Bandra East, Mumbai 400 051.
Foreign Currency Credit outside India
With a presence at major financial centers of the world, Bank of
Baroda has strong foreign currency resources at Money Centre Branches.
This enables Bank of Baroda to arrange for and grant Foreign Currency
Credits to Indian as well as multinational corporations at competitive rates.
The foreign currency denominated Loans are granted at Money Centre
Branches across the globe. The Foreign Currency Loans granted to Indian
Corporate are granted as per External Commercial Borrowing (ECB) Policy
of Govt. of India.
I.T. INFRASTRUCTURE & IT-ENABLED SERVICES
AT BANK OF BARODA
Bank’s IT-enabled Business Transformation Programme; Roll
out of Core Banking Solution (CBS):
• The Bank’s technology initiatives are clearly focused on the customer.
The Business Transformation Programme, encompassing technology,
is being implemented by the Bank with a view to providing the
customer, convenience banking on 24X7 basis, at major centres in
44

45. India and abroad, through deployment of Core Banking Solution with
integrated delivery channels like ATM, Internet, Phone, Mobile,
Kiosk, Call Centre.
• For implementation of Core Banking Solution, which will be a single
solution across all the countries where the Bank is operating, the Bank
has tied up with a world-class System Integrator – Hewlett Packard
(HP). This solution is a comprehensive solution incorporating various
applications like Enterprise wide General Ledger, Risk Management,
Anti-Money Laundering, Cheque Truncation, Credit Cards, Mutual
Funds, On-line Trading, Data Warehousing, Customer Relationship
Management, RTGS, NEFT, Global Treasury, Securitization, Human
Resources Management System, Employee Pay Roll.
• By March 2006, CBS will be rolled out in 125 branches across 10
major centres in India and U.A.E. and Oman. This will be taken
forward to cover 600 branches – including most of the International
Branches – by March 2007. Per current plans, the coverage will be
further extended to 1900+ branches by 2008-09.
Bank’s State-of-the-Art Data Centre:
• Bank has built and commissioned its own State-of-the-Art Global
Data Centre (DC) in Mumbai for running its centralized banking
solution and other applications in 1900+ branches across India and 20
other counties where the Bank is operating. The Data Centre will
function as a central data hub of the Bank for both its domestic and
international operations.
• The Data Centre has been designed and implemented by Hewlett
Packard (HP), its technology partner. It conforms to critical
technology standards and is equipped with full Communication and
Network Infrastructure, meeting all the attributes of a Tier III Data
Centre and having certification capability for BS 7799.
Wide Area Network (WAN) - Networking of Branches under CBS:
• 1100+ branches in India have been networked through Lease Lines,
ISDN, and VSATs for running multiple applications under CBS.
Branch Computerization:
45

46. • Bank has computerized operations at 2697 branches in India,
out of which 516 branches have been brought under computerization
through cluster approach.
ATM Network:
• The Bank’s interconnected ATM network in India now stands at 535
across 203 centres.
• The Bank’s plans are to extend this network in stages in future. The
Bank also plans to deploy low cost ATMs at Rural centers.
Tele-Banking, PC-Banking, Any Branch Banking:
• Centralized Telebanking, PC Banking and Any Branch Banking
are available at 294 branches across 7 centres.
Information based Internet & Mobile Banking (SMS) services:
• These services are offered to customers at over 585 branches
across 139 centres. SMS and WAP-based Mobile Banking Services
are also provided to the customers of these branches, using mobile
phone. Customers can get a single view of their accounts across
various branches; can obtain account view for 2 months as also send
request for chequebook.
BOB Money Express – Bank’s exclusive e-Payment Product:
• This product is available at 340 branches across 53 centres.
Real Time Gross Settlement System (RTGS):
• RTGS is operational at the Bank’s Treasury Branch, Mumbai.
• Funds transfer facility for customers is now operational at 234
branches.
Utility Bills Payment (Bill Pay):
46

47. • This is an Internet based service for utility bill payments through
BILLDESK.COM
RBI’s Special EFT:
• This facility for Inter bank electronic funds transfer is available at 206
branches of the Bank.
MICR Processing Centres:
• Bank of Baroda runs 3 MICR centres - at Ahmedabad, Rajkot and
Combater.
Indian Subsidiaries:
• Operations at the Bank’s Indian Subsidiaries - BOBCARDS Ltd.,
BOB Capital Markets Ltd. (Primary Dealership), BOB Housing
Finance Ltd., and BOB ASSET MANAGEMENT COMPANY LTD -
are 100% computerized.
International Operations:
• Operations at all Bank’s overseas branches are 100% computerized.
Operations at all Offshore Business Units, Joint Ventures &
Subsidiaries are also 100% computerized.
• Core banking at territory level is implemented in 8 overseas
territories.
ANALYSIS OF THE SURVEY
Analysis for the better understanding of the BOB bank account
holders was carried out. The purpose of analyzing was to know customer
satisfaction, awareness of the products offered by the bank and that, their
view about some facilities they would like to have and improvements
suggested for better working of the bank and higher satisfaction.
Questionnaire method was used to carry out the survey. The survey
was carried out in the different part of city of Mumbai. Different types of
account holders like current account holder, saving account and fixed
47

48. account holders were interviewed. Some very interesting facts came up
which will be dealt in detail later. A set of 14 questions was used in the
questionnaire, which varied from objective types to descriptive types of
questions. Questionnaire was framed and design in such a manner that it
could be filled up within 5 minutes by the person thus saving time of
interviewee.
The sample size of the survey was taken to be 50. Of this 50 people 20
questioned were to businessperson, 15 people were servicemen and
professional, 10 students and 5 housewives or other categories. Questions
ranged from getting information about loan, different account, cards, use of
bank overdraft etc.
Besides the questionnaire, method information was also gathered by
means of secondary data from sources such as:
1. Branches of Bank of Baroda.
2. BOB websites.
FINDINGS OF THE SURVEY
The first question asked was whether the bank account
was satisfied with the services of the Bank of Baroda.
The results were astonishing. They are as under:
48

49. 0%
20%
40%
60%
80%
100%
SATISFIED
UNSATISFIED
Each person interrogated had no questions or hesitation in rating
services offered by bank of Baroda as satisfactory. Reason explained why
the customer were given quick response at the Bank of Baroda is the unique
services, facility offered by bank. Some of the facilities offered by the bank,
which lead to such high satisfaction, are as follows:
1. The reason for high satisfaction rate as mentioned by sample was that
on the standing instructions of the customers bank could pay bills
such as telephone bills, light bills etc. with the required minimum or
low cost.
2. Sample also said that for the purpose of bank formalities bank send
their own representative, it saves the time of the customers.
3. The account holders were very well informed about the new facilities
started by the bank by sending letters.
4. Bank also provides E-Banking services.
The second question asked was whether they had ever
taken a bank loan?
The results were received are:
LOAN TAKEN BY BUSINESSMEN
49

50. YES
40%
60%
0%
10%
20%
30%
40%
50%
60%
YES
NO
Classically bank loans were meant for the businessman. Bank of
Baroda has given loans to almost 60% of its customer.
It is pleasing from the point of view of the bank that almost 60% of
the businessmen having account with the BOB have taken a bank loan. Most
of the bank loans taken by the businessman were for the purpose of raw
materials or the purchase of machinery or for the purchase of assets for the
company. Some of them had even taken loan for starting up the business and
said that the bank was very helpful for arranging for the loans.
LOANS TAKEN BY STUDENT
20%
80%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
YES
NO
The reason for only 10% of students taking bank loans is that students
do not need to take loans. Their caretakers meet most of the expenses and it
is seen that in India loan taken by the students have only for the purpose of
consumer durable such as computer, music system etc
OVERALL LOAN TAKEN BY BOB CUSTOMERS
LOANS TAKEN BY BOB CUSTOMERS
50

51. 48% 52%
0%
20%
40%
60%
80%
100%
NO
YES
As we have seen earlier that 60% of businessman have taken loan, and
20% of student have taken loan from the Bank. Overall, almost 48% of the
BOB customers have taken loan from the Bank. This is a big number; almost
every second customer has taken loan from the Bank.
This is very impressive rate of loan given by the Bank. It is assumed
that loan sanctioned in the rate of 45% to 55% is a good as it should be. As
stated above the loans given by the Bank are mainly because of attractive
loan schemes offered by the Bank. Because of this attractive loan scheme
facility it has been able to attract more loans than other Banks.
Another reason for such high BOB success of loan scheme is very few
formalities to carry out during the loan. The processing time taken by Bank
is much lower than the other Banks. The sample interviewed told that the
time taken for granting of loan scheme is almost half than taken by other
Banks. One more reason is extensive advertising taken up by Bank of
Baroda, resulting in increasing in bank of Baroda’s brand name.
Another question asked was that how they would like to
payback the loan taken from the Bank?
The overall result is as follows:
51

52. MONTHLY INSTALLMENT – 44%
QUATERLY INSTALLMENT - 34%
YEARLY INSTALLMENT – 22%
HOW THEY LIKE TO PAYBACK
50%
40%
10%
40%
34%
26%
60%
34%
6%
0%
20%
40%
60%
80%
100%
BUSINESS STUDENT OTHERS
YEARLY INSTALLMENT
QUATERLY INSTALLMENT
MONTHLY INSTALLMENT
From the graph we can see that customers mostly like to pay back the
loans as monthly installment. As we see that 50% of businessman like to pay
loan as monthly base. Like them others customer also likes to pay back the
loan as monthly base, students are 40% & others are 60%.
The main reason for such high payback of monthly installment
schemes in all customers is because they can instruct the Bank to debit their
account at every month so that they don’t feel the pressure of loans and
interest. The same is the reason with businessman especially those whom
take big loans which amount to high interest. So monthly repayments can
decrease the loan and interest liabilities easily.
Another question asked was which of the BOB card
customer’s customer like to use?
The results are as follows:
52

53. 60%
50%
44%
30%
38% 36%
0%
10%
20%
30%
40%
50%
60%
70%
BUSINESS STUDENT OTHERS
CREDIT CARD
DEBIT CARD
As we can see from the graph that almost 50% of accountholders have a
credit cards. Credit card often termed, as credit money is one of the
products which today every bank is providing to its customer. We can see
that businessman have the highest number of credit cards i.e. around 60%.
This is because they are most likely to be using more than any other
category. Credit cards are very important as during traveling customers don’t
need to keep too much of cash with them and can just use the credit card as
cash. Credit cards now have a Universal application.
When inquired about Internet Banking used by customer
or not, results were not in favor of Bank.
76% 24%
YES
NO
Customers are not at all interested in using the internet banking
service, because they don’t have that much of knowledge about the process
that how to operate internet, how to access in it, as well as all customers
don’t have their on computers so through which they can operate. Also
customers are thinking that the internet banking service is not safe.
QUESTIONNAIRE:
53

54. NAME: -
OCCUPATION:
 PROFESSIONAL
 SERVICE
 STUDENT
 OTHERS (SPECIFY)
1. WHAT TYPE OF ACCOUNT DO YOU HAVE WITH BANK OF
BARODA?
 CURRENT ACCOUNT
 SAVING DEPOSIT ACCOUNT
 FIXED ACCOUNT
 FLEXIBLE RECCURING DEPOSIT ACCOUNT
 OTHER (PLEASE SPECIFY)
2. ARE YOU SATISFIED WITH THE SERVICE PROVIDED BY THE
BANK OF BARODA?
 YES
 NO
3. WHICH OF THE FOLLOWING DEPOSITS YOU ARE AWARE
OF?
 FIXE DEPOSIT
 CURRENT DEPOSIT
 SAVING DEPOSIT
 RECURRING DEPOSIT
 MONTHLY INCOME PLAN
 NAGRIK BACHAT KHATA
 OTHERS (PLEASE SPECIFY)
4. HAVE YOU EVER TAKEN A BANK LOAN?
 YES
54

55.  NO
5. WHICH OF THE FOLLOWING LOAN SCHEME YOU WERE
AWARE OF?
 HOUSING LOAN
 PERSONAL LOAN
 CONSUMER DURABLE LOAN
 LOAN AGAINST SHARES
 COMMERCIAL VEHICLE LOAN
 BARODA DESH VIDESH YATRA LOAN
6. WHAT KIND OF LOAN WOULD YOU LIKE TO TAKE OTHER
THAN THOSE MENTIONED ABOVE? WHY?
7. HOW WOULD YOU PREFER TO PAYBACK THE LOAN?
 MONTHLY INSTALLMENT
 QUATERLY INSTALLMENT
 YEARLY INSTALLMENT
8. DO YOU USE INTERNET BANKING FACILITY PROVIDE BY
BANK OF BARODA?
 YES
 NO
9. CAN YOU LIST SOME OF THE SERVICES WHICH YOU KNOW
BANK OF BARODA OFFERING?
55

56. 10. DO YOU OWN ANY BOB CARD?
 BOB EXCLUSIVE WOMEN CARD
 BOB EXCLUSIVE YOUTH CARD
 BOB PARAS CARD
 BOB GOLD CARD
 BOB SILVER CARD
 INTERNATIONAL DEBIT CARD
 OTHER (PLEASE SPECIFY)
11. DO YOU HAVE ANY INVESTMENT SCHEME WITH BANK OF
BARODA?
 YES
 NO
12. DO YOU KNOW THE RATE OF INTEREST OFFERED BY BANK
OF BARODA?
 YES
 NO
13. IF YES, PLEASE SPECIFY: -
14. HAVE YOU EVER USED PERSONAL BANK OVERDRAFT?
 YES
 NO
56

57. CONCLUSION
Banking has become one of the most important tools for the
success of any country. It has become became a backbone of any
countries growing economy. Banking over the years, in India has
seen lots of ups and downs. Today due to liberalization of the
economy, more and more sectors are becoming more and more
competitive. Banking is no different.
Banking sector has seen a lot of transformation in the past
post liberalization period, it has became very important for bank to
give services best to their capabilities. If the customers are not
satisfied with the services provided by the bank, they will transfer
their account to some other bank. Result is loss of revenue for the
bank and the loss of goodwill.
New technology needs to be introduced in the banking sector
as it is utmost clear that people are not only expecting normal
banking services but they want to be as their business partners and
help accordingly. New concept such as universal credit cards, debit
cum ATM cards need to be promoted along with the concept of
‘plastic money’ because most of the privatized bank are
increasingly becoming ‘fee earning oriented’. Therefore, the bank
has give more and more services to the people in order to have
increased returns from fee-based function.
Professionalism is getting the key word in banking sector.
People now expect the privatized banks to become more and more
professional rather that of earlier years where the staff has no
sympathy or understanding for the time and value of the customer.
People today demand more working hours, more services to be
provided at no extra cost or minimum cost. This has led to more
professional attitude by the banking people.
57

58. Foreign banks have not only brought in new concept from
the west but are also responsible for improving quality standards in
the banking sector. With the influx of foreign bank, most of the
Indian banks have felt the need of change for the betterment of
services to the customers. Even then most of the nationalized bank
are still following the age old traditions and are having low
satisfaction rates amongst its customer which results in mergers of
different banks or most of the banks making heavy loses at nay
expense of the government.
Banks such as SBI, HDFC and other privatized banks in
India are doing a terrific job in banking sector handling better
human resource, adopting new technologies, bringing new
concepts and maintaining a very high standards in services
provided to the customers. They are even giving a run for the
money to the foreign bank that everyone feels are the benchmark
for measuring banking standards.
Perhaps the oldest form of service sector known to human is
going through a radical change not only throughout the world but
also in India. The greatest beneficiary of this change is none other
than the human itself.
58

59. EXECUTIVE SUMMARY
 Theme of the project
The project speaks about the different types of services
offered by the Bank of Baroda. The project tries to highlight the
awareness of the customers in respect to various products and
services offered by the Bank of Baroda. It also tries to find out
satisfaction rate amongst its customer.
 Banking scenario
Banking system has improved tremendously over the years.
With the invasion of foreign bank on Indian soil the outlook pf
banking sector in India has changed dramatically. Due to the
professionalism showed by the private banks in India it has been
able to give other foreign bank run for its money. Today the banks
are becoming more technology oriented rather than work force
oriented. New concepts are coming in day in day out. Bank today
are providing services to the best of their ability and in this way
had benefited the common man.
 Survey
For knowing the satisfaction amongst its client and
awareness of BOB products and services know and used by the
customers of the Bank of Baroda a survey was carried out in the
city of Mumbai. The sample size selected for the survey was kept
at 50. The account holder which included individual having current
account, saving account, and student having saving account.
Questionnaire method was used for primary data collection
procedure. Secondary data collected from other sources.
59

60.  Recommendation
Survey was analyzed and it is recommended as it improving
the awareness amongst the customers regarding Banks products
and services and how banks serve well.
 Conclusion
To conclude banking sector is the backbone of any economy.
Services offered by them go a long way in upliftment of the
society. In this world of high competition where banking too faces
very high competition, if has to survive has to serve its customer to
the best of their ability.
60

61. BIBLIOGRAPHY
BOOK
BANKING THEORY AND PRACTICES
- K.C SHEKHAR
MAGAZINE
BUSINESS INDIA
BUSINESS TODAY
WEBSITE
WWW.GOOGLE.COM
WWW.BANKOFBARODA.COM
NEWSPAPER
DNA
61