INDEX

CONTENT

PAGE NO.

INTRODUCTION
EVALUATON OF BANKS

4
6

THE RISE OF BARODA SUN

THE INITIATIVES

10

PRODUCTS AND SERVICES

13

BOB CARDS

22

LOANS AND FINANCE

26

TREASURY OPERATION

40

INTERNATIONAL TRADE

43

I.T. INFRASTRUCTURE

45

QUESTIONAIRE

54

CONCLUSION

57

EXECUTIVE SUMMARY

59

BIBLIOGRAPHY

61

INTRODUCTION

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

Schedule Banks and

Non-schedule Banks.

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

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

EVALUATION OF BANKING INSTITUTION

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

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

THE RISE OF BARODA SUN

It has been a long and eventful journey for Bank of Baroda. And while it stands at the
threshold of history, looking forwards to its centenary celebrations next year, maybe its time to
turn back the pages of time, and salute the great moments of its historical saga.
Bank of Baroda began its first page in the history of time on July 20 th,
1908 when Sir Sayajirao III Gaekwad, the Maharaja of Baroda, set up the Bank in Baroda in a
busy market street in Baroda. Two years later, in 1910, the Bank opened its first office branch in
Ahmedabad, and the rest as they say is history. The Bank of Baroda has never looked back since
then, and today, it has grown to a total asset base of about Rs. 4.47 trillion (end-march 2012),
with a network of over 5,600 branches and offices and about 2000 ATMs.
Early 50s was a day and age when international banking was not considered fashionable or
too risky for Indian companies, but Baroda followed the Indian communities settled Abroad,
especially the affluent NRI Gujratis and set up its first international branch in Kenya 1953. Today,
the Bank has expanded its branches to 26 countries worldwide, spanning 4 continents.
Bank of Baroda was nationalized along with 13 other major commercial Banks on 19 th July
1969. As India marched from an agricultural economy to an industrial economy, to an
international economy Bank of Baroda also evolved at every stage. In the eighties, the Banks
customer focus initiatives led it to various innovations such as multi-service agency for microcredit, Gram Vikas Kendras, and launching Indias first Bank Card, the BOB Card. Bank of
Baroda branch offices opened up in various parts of the country, and around the world. There
were also strategic takeovers and mergers of other smaller banks like with Hind Bank, Benaras
State Bank, Bareilly Corporation Bank etc.
In 2005, closer to its centenary, the Bank realized that it should opt for a more drastic
change in positioning itself to the world. There was a need for revolution, a change of image. A
rite of passage from the old to the new, modern, and contemporary.

THE HARITAGE AND THE HEROES

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

BANK OF BARODA NEW LOGO

BOBs new logo is a unique representation of a universal symbol. It comprises dual B

letterforms that hold the rays of the rising sun. We call this the Baroda Sun.
The sun is an excellent representation of what Bank of Baroda 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
Bank of Baroda stakeholders realize their goals. To BOBs customers, we seek to be a one-stop,
reliable partner who will help them address different financial needs. To Bank of Baroda
employees, we offer rewarding careers and to Bank of Baroda 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 Bank of Baroda bank is characterized by diversity. Bank of
Baroda network of branches spans geographical and cultural boundaries and rural-urban divides.
BOBs customers come from a wide spectrum of industries and backgrounds. The Baroda Sun is
a fitting face for Bank of Baroda brand because it is a universal symbol of dynamism and
optimism it is meaningful for Bank of Baroda many audiences and easily decoded by all.
BOBs new corporate brand identity is much more than a cosmetic change. It is a signal
that we recognize and are prepared for new business paradigms in a globalize world. At the same
time, we will always stay in touch with Bank of Baroda heritage and enduring relationships on
which Bank of Baroda bank is founded. By adopting a symbol as simple and powerful as the
Baroda Sun, we hope to communicate both.

PRODUCTS & SERVICES OF BANK OF BARODA

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

1. BARODA CURRENT ACCOUNT

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

2. BARODA FLEXIBLE RECURRING DEPOSIT ACCOUNT

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

Key Benefits

Regularizes savings by encouraging a saving habit.

Loan/Overdraft facility up to 95% of the deposit amount.

Provision for nomination.

3. CAPITAL GAIN ACCOUNT SCHEME, 1988

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

Key Benefits

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

Provision for nomination.

4. SAVINGS BANK ACCOUNT

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

Key Benefits

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. No hidden costs.

5. NAGRIK BACHAT KHATA

No frills. No hidden charges. Just banking.

Key Benefits

Services designed to cater to a vast majority of Indian population

Open account with an initial amount of just Rs. 50/-

Zero service charges for non-maintenance of a minimum balance of Rs. 50/-

REMITTANCES (THE BOB MONEY EXPRESS)

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.

Key Benefits

10

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.

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.

Outward Bills for Collection:

All branches of Bank of Baroda have the facility of collecting Cheques, Demand Drafts,
Interest Warrants, Dividend Warrants, Refund Orders, Clean Bills and Documentary Bills from
customers and various centres. All Cheques and other instruments are collected into properly
introduced accounts and sent for collection on the day of receipt from the customers or the next
working day.

Time Bound Collection:

All branches of Bank of Baroda are prompt in terms of the collections and forwarding of
cheques and other instruments. For metro cities, when financial instruments are presented in a
branch, the proceeds are credited to the customer's account on the same day in the following
week. For state capitals, (and centres with more than 100 branches), amount is credited only after
10 days. If these instruments are not collected within 14 days of lodgment, interest @ 2% per
annum over savings bank rate is paid and is credited to the customer's account, without the
customer having to claim it.

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:

11

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

MULTI CITY CHEQUE

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

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

12

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 Bank of
Baroda consistent track record of profit making since 1908, BOB are confident of meeting all
your banking requirements.
BOBs wide network of foreign branches, offices and Correspondent Relations at
convenient business locations all round the world, which is the largest among any bank in India,
will ensure a smooth and safe banking experience.

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 BOB 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 Bank of Baroda 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.

13

Bank of Baroda 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 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.

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.
BOB extend loans for agricultural activities and a host of services for farmers well tuned to
the rural market, and aim to make a Self Reliant Rural India.

Faster technology for better service

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

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.

14

Appraisal:
Bank of Baroda carries out credit and merchant appraisals of all types of business ventures
including infrastructure projects by Bank of Baroda 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.

CARDS PROVIDED BY BANK OF BARODA

DEBIT CARD
The Bank of Baroda International Debit Card is accepted at over 10000 Visa Electron ATMs
in India and 850000 ATMs worldwide. The card is also accepted at any 100000 merchant outlets
in India and around 13 millions globally. The card enables you to enjoy the convenience of cashless purchasing power without the fear of overdrawing your account

Key Benefits

Take advantage of the most widely accepted card and be able to withdraw from any ATM
displaying the VISA logo, in India and abroad.

At VISA Electron merchant shops, it can also serve as your electronic purse, and money
gets debited instantly from your account, as you pay.

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.

FEATURES:
15

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

. Cash withdrawal: Rs.10, 000 per month.
. Service charge on revolving credit limit: 1.99%
Service charge on Cash withdrawal: 2% or Rs.100 whichever is higher
Service Charge on ATM Cash withdrawal: 2.5% or min. Rs.100 , 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).

BOBCARD CORPORATE GLOBAL

This credit card is affiliated with visa international & valid throughout the world all over
30 million establishments and 8, 00,000 Visa ATMs. It can only be applied by a corporate.

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
Service Charge on ATM Cash withdrawal: 2.5% or min. Rs.100 , 3% or min. Rs.150 (Abroad).
. 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).

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. 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.

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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).

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 corporate, business and trading houses

(including partnership firms).

LOAN AMOUNT:
Upto 25% of the existing Fund based Working capital limits (depending on the Credit Rating),
subject to a minimum of Rs. 10 lakhs and maximum of Rs. 250 lakhs.

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.

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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.

A) 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

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.

PURPOSE:
To augment enterprises working capital gap and to help in improvement of current ratio and also
for meeting genuine business requirements. The facility will also be available for repayment of
secured and unsecured Loans of other banks or institutions, but not for any purpose, which is not
related to the enterprises activity.

RATE OF INTEREST

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

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

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.

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.

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

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Loan can be availed Upto Rs. 10.00 Lacs.

Available for undertaking pleasure trips within the country as well as for overseas.

No margin money up to Rs. 50, 000.

BARODA EDUCATION LOAN

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

ADVANCES AGAINST SHARES/IPOS

i) Advances against Shares to Individuals: Bank of Baroda has introduced scheme of Advances to individuals against shares for genuine
individual investors. The maximum amount of finance that can be granted to an individual is to
the extent of Rs.20 lakh, subject to minimum margin stipulation from time to time.

ii) Bank Finance to employees to buy shares of their own companies: In view of a number of companies offering Employee Stock Options (ESOPs) and employee
quota in their IPOs, Bank of Baroda has introduced scheme to extend finance under ESOP/ IPO
to employees to buy shares of their own companies to the extent of 12- months salary of the
employee with a maximum of Rs. 10 Lacs subject to regulatory guidelines on margin, which is
presently as under: a. Initial Public Offering (IPO): 50% margin
b. Employees Stock Option Plan (ESOP): 10% margin.

BARODA VAIBHAV LAKSHMI LOAN

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

Key Benefits

Takes care of all kinds of expenses.

Loan can be availed as term loan or overdraft facility without any security.

Loan can be repaid in maximum 36 EMIs.

BARODA LOAN TO PENSIONERS

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

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.

HOUSING LOANS TO NRIS / PIOS

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

21

old dwelling unit, for repair / renovation / extension of your existing house, purchase of a plot and
repayment of loans from other housing finance companies.

Key Benefits

A loan product tailor-made for NRI / PIO needs

Opt for Flexi Rate plan to hedge the interest rate risk by breaking the loan into two
separate accounts

Free property insurance and personal accident insurance

No pre payment / foreclosure charges for part as well as full prepayment

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.

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.

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.

FOREIGN CURRENCY LOAN (FCNRB)

Currencies for loan: US $, Euro , Japanese and Sterling

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Purpose:
1.

Working Capital.

2.

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

3.

AGRICULTURAL FINANCE SCHEMES:

Agriculture being the backbone of the Indian Economy, Bank of Baroda, is contributing
significantly in accelerating the pace of rural development by providing finance to farmers by
way of following agriculture products.
1.

Baroda Kisan Credit Card (BKCC) - Empowering the farmer: The BKCC facility
designed exclusively for the benefit of the farmers aims to provide them the
opportunity to manage and utilize their funds in the manner they deem fit. BKCC
provide adequate and timely support to farmers for their production needs e.g. purchase
of

quality

inputs,

investment

requirements

like

purchase

of

agriculture

implements/tractor etc, farming expenses towards farm maintenance, unforeseen family

expenses (consumption) and maintenance of non-farm activities.
2.

Purchase of agricultural implements including indigenous improved ones being utilized

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

3.

Purchase of heavy agricultural machinery like tractors, power-tillers, etc. either by

farmers having larger holdings with irrigation facilities or group of farmers with
irrigation facilities.

4.

Purchase of second hand tractors to provide opportunity to those interested farmers in

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

5.

Production credit for raising various crops from the point of preparatory tillage till
harvesting, for land owners or permanent tenants or leaseholders or share croppers.

6. Farm produce marketing loan against pledge of receipt of warehouse or cold storages to
the farmers.
7.

Development of irrigation facilities, covering sinking of wells/bore wells, lifting of

water by installation of pump sets, transporting of water through field channels, water
saving system like drip irrigation/sprinkler irrigation etc. for farmers. Energizing of

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pump sets through Non-conventional Energy Resources like windmill, solar energy etc.
or installation of generation sets is also covered.
8.

Extending working capital needs to dealers of dealers/ distributors/traders of agricultural

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

9.

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

10.

Providing employment to the unemployed technical personnel through Agro service

Centre.

11. Setting up of Agri clinic and Agribusiness centre by agriculture graduates.

12.

Construction farm building/structures like cattle shed, tractor shed, thrashing yards,
fencing etc. by individual farmer or firms engaged in agricultural activity and is of long
term nature.

13. Construction/Expansion/modernization/Renovation of Rural Godowns/Cold storage.

14.

Developments of land like bunding, terracing, leveling etc. and reclamation of saline,
alkaline, ravine soils by farmer or organization like co-operative societies etc.

15.

Financing Scheduled Caste & Scheduled tribes, who have been provided/allotted land
by the State Govt, can be financed for purchase of farm implements irrigation pair of
bullocks etc.

EXPORT CREDIT (RS)

1. RUPEE EXPORT CREDIT:

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.

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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.

3. IMPORT FINANCE
Bank of Baroda provides various types of funding/ services to the importers for facilitating
the imports in the country. All the facilities are subject to the prevalent rules of the Bank/ RBI
guidelines. The various facilities provided are:

Collection of import bill.

Financing of import by way of Foreign Currency Loans

Issuing Guarantees etc. on behalf of importers.

COLLECTION OF IMPORT BILLS:

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

LETTER OF CREDIT:
Bank of Baroda offers L/C facility for the purchase of goods in the international market.
Being a well-known international Bank of repute, the L/Cs of the Bank of Baroda are well
accepted in the International market.
With the Letter of Credit of Bank of Baroda, importers can build up better trust/
confidence in their suppliers and develop other business relationship at a much faster pace.

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The vast network of Bank's overseas branches/ subsidiaries and Correspondent Banks
world-wide facilitate prompt & efficient services to the importers.

BANK GUARANTEES:
Bank of Baroda on behalf of importers/ other customers issues guarantees in favour of
beneficiaries abroad. The guarantees can be both Performance and Financial.

TREASURY OPERATIONS

In the changing economic environment of the country in particular and the globe in general,
Bank of Baroda was the premier public sector bank in India to set up a Specialized Integrated
Treasury Branch (SITB) in Mumbai and the integrated approach initiated by the Bank in its
treasury operations is now being emulated by other peer banks.
Bank of Baroda has consciously adopted a focused approach towards improving
efficiency and profitability by successfully integrating the operations of different financial
markets, viz. Domestic Money, Investments, Foreign Exchange and Derivatives and has made its
mark as an important player in the market-place.

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

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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.

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

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EXTERNAL COMMERCIAL BORROWINGS

The foreign currency borrowings raised by the Indian corporates from confirmed banking
sources outside India are called "External Commercial Borrowings" (ECBs). These Foreign
Currency borrowings can be raised within ECB Policy guidelines of Govt. of India/ Reserve Bank
of India applicable from time to time. ECBs includes the following:
1. Commercial Loans/Syndicated Loans
2. Floating/ Fixed rate Notes and Bonds
3. Import loans, loans from the export credit agencies of other countries.
4. Foreign Currency Convertible Bonds (FCCBs) before conversion
5. Commercial loans from multilateral agencies such as IFC, ADB, CDC etc.

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.

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.

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Real Time Gross Settlement System (RTGS):

RTGS is operational at the Banks Treasury Branch, Mumbai.

Funds transfer facility for customers is now operational at 234 branches.

Utility Bills Payment (Bill Pay):

This is an Internet based service for utility bill payments through BILLDESK.COM

RBIs Special EFT:

This facility for Inter bank electronic funds transfer is available at 206 branches of the
Bank.

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

29

bank are increasingly becoming fee earning oriented. Therefore, the bank has give more and
more services to the people in order to have increased returns from fee-based function.
Professionalism is getting the key word in banking sector. People now expect the privatized
banks to become more and more professional rather that of earlier years where the staff has no
sympathy or understanding for the time and value of the customer. People today demand more
working hours, more services to be provided at no extra cost or minimum cost. This has led to
more professional attitude by the banking people.
Foreign banks have not only brought in new concept from the west but are also responsible
for improving quality standards in the banking sector. With the influx of foreign bank, most of the
Indian banks have felt the need of change for the betterment of services to the customers. Even
then most of the nationalized bank are still following the age old traditions and are having low
satisfaction rates amongst its customer which results in mergers of different banks or most of the
banks making heavy loses at nay expense of the government.
Banks such as SBI, HDFC and other privatized banks in India are doing a terrific job in
banking sector handling better human resource, adopting new technologies, bringing new
concepts and maintaining a very high standards in services provided to the customers. They are
even giving a run for the money to the foreign bank that everyone feels are the benchmark for
measuring banking standards.
Perhaps the oldest form of service sector known to human is going through a radical
change not only throughout the world but also in India. The greatest beneficiary of this change is
none other than the human itself.

Conclusion

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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.

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.
Survey was analyzed and it is recommended as it improving the awareness amongst the
customers regarding Banks products and services and how banks serve well.

BIBLIOGRAPHY

BOOK
BANKING THEORY AND PRACTICES
- K.C SHEKHAR

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MAGAZINE
BUSINESS INDIA
BUSINESS TODAY

WEBSITE
WWW.GOOGLE.COM
WWW.BANKOFBARODA.COM

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