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UNIVERSITY OF MUMBAI

SYDENHAM COLLEGE OF COMMERCE &ECONOMICS

B ROAD, CHURCHGATE, MUMBAI-400 020

TELEPHONE: 2287-0269

A PROJECT ON
HR PRACTICES IN BANKS
SUBMITTED BY
JITENDRA MAKWANA
PROJECT GUIDE: PROF.SMITA KUNTAY

SEMESTER V
BACHELOR OF COMMERCE (BANKING & INSURANCE)
ROLL NO:26

DECLARATION

I hereby declare that this submission is my own work & to the best of my
knowledge & belief, it contains no material previously published or written by
another person nor material which to a substantial extent has been accepted for the
award of any other degree or diploma of the university or other institute of higher
learning except where due acknowledge has been made in the text.

ACKNOWLEDGEMENT

I would sincerely like to thank my project guide

Prof. S. Kuntay
for enabling me to successfully carry out the project work through his constant
guidance, for endless support and continuous involvement in the project. It was
really worthwhile to receive help from Prof. S. Kuntay who in person was always
present to help me out anytime i felt his need. Without his constant support this
project would not have been acknowledged as it is now. Finally, I owe a great deal
of sincere thanks to the faculty members who have been of great support from time
to time along with my friends, who kept encouraging me all along.

Contents
1. Introduction to Human Resource.6
2. BOB Logo8
3. Introduction to BOB.9
(A) History
(B) Vision
(C) Mission
(D) BOB Logo
(E) Global Presence of BOB
(F) The Initiatives
4. Human Resource.21
(A) HR Objectives
(B) HR Initiatives
5. Training...28
Succession Planning
6. Promotion30
7. Competitors..33
8. Business Strategies...34
9. Conclusion...40
10. Recommendations41
11. List of Reference..42
12. Bibliography.43
13. Glossary44

1. Introduction to Human Resource

The banking industry is highly competitive. The key to a banks success is having
the best people. In fact, people are the main commodity. Banks dont manufacture
anything; they offer a service. Human Resources is core to the success of the bank.
Its the HR team that hires, motivates, and develops the people that offer that
service.
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HR is responsible for people issues across the whole company. This includes things
like:
Making sure the business is employing the best people, helping develop
those people - and importantly ensuring they dont leave!
Working with other divisions such as Legal and Compliance to help set
company rules - and in some cases communicating those rules to staff
Ensuring employees are treated fairly, that they know what their rights are,
and that there are measures in place when something goes wrong
Helping to develop people strategies to meet the goals of different parts of
the business for example: succession planning for senior people or
structuring teams to ensure they have the right type of skills and experience.
The human resources of an organization consist of all people who perform its
activities.
Human resource management (HRM) is concerned with the personnel policies and
managerial practices and systems that influence the workforce. In broader terms,
all decisions that affect the workforce of the organization concern the HRM
function.

The activities involved in HRM function are pervasive throughout the

organization. Line managers, typically spend more than 50 percent of their time for
human resource activities such hiring, evaluating, disciplining, and scheduling
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employees. Human resource management specialists in the HRM department help

organizations with all activities related to staffing and maintaining an effective
workforce. Major HRM responsibilities include work design and job analysis,
training and development, recruiting, compensation, team-building, performance
management and appraisal, worker health and safety issues, as well as identifying
or developing valid methods for selecting staff. HRM department provides the
tools, data and processes that are used by line managers in their human resource
management component of their job.

3. INTRODUCTION TO BOB
Bank of Baroda (BSE: 532134) (BOB) is the third largest Public Sector bank in
India, after State Bank of India and Punjab National Bank. BOB has total assets in
excess of Rs.2.27lakhcrores, or Rs. 2,274 billion, a network of over 3000 branches
and offices, and about 1100+ ATMs. It offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, credit cards and asset management. Maharajah of Baroda Sir
Sayajirao Gaekwad III founded the bank on July 20, 1908 in the princely state of
Baroda, in Gujarat. The bank, along with 13 other major commercial banks of
India, was nationalized on 19 July 1969, by the Government of India.

(A)HISTORY
1908-1958
1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB).
1910: BOB established its first branch in Ahmadabad.
1953: BOB established a branch in Mombasa and another in Kampala.
1954: BOB opened a branch in Nairobi.
1956: BOB opened a branch in Dar-es-Salaam.
1957: BOB established a branch in London.
1959: BOB acquired Hind Bank
1960s
1961: BOB merged in New Citizen Bank of India. This merger helped it increase
its branch network in Maharashtra.BOB also opened a branch in Fiji.
1962: BOB opened a branch in Mauritius.
1963: BOB acquired Surat Banking Corporation in Surat, Gujarat.
1964: BOB acquired two banks, Umbergaon Peoples Bank in southern Gujarat
and Tamil Nadu Central Bank in Tamil Nadu state.
1964: BOB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistan
war. It is unclear when BOB had opened the branch.
1965: BOB opened a branch in Guyana.

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1967: The Tanzanian government nationalized BOBs three branches there and
transferred their operations to the Tanzanian government-owned National Banking
Corporation.
1969: The Government of India nationalized 14 top banks, including BOB.BOB
incorporated its operations in Uganda as a 51% subsidiary, with the government
owning the rest.
1970s and 1980s
1972: BOB acquired Bank of Indias operations in Uganda.
1974: BOB opened a branch each in Dubai and Abu Dhabi.
1975: BOB acquired the majority shareholding and management control of
Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in
Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand State.
1976: BOB opened a branch in Oman and another in Brussels. The Brussels branch
was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting
and jewellery having business in Antwerp, a major center for diamond cutting.
1978: BOB opened branch in New York and another in the Seychelles.
1979: BOB opened a branch in Nassau, the Bahamas.
1980: BOB opened a branch in Bahrain and a representative office in Sydney,
Australia.BOB, Union Bank of India and Indian Bank established IUB
International Finance, a licensed deposit taker, in Hong Kong. Each of the three
banks took an equal share.

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1985: BOB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO
(Zambian government; 40%) established Indo-Zambia Bank (Lusaka).BOB also
opened an Offshore Banking Unit (OBU) in Bahrain.
1988: BOB acquired Traders Bank, which had a branch network in Delhi.
1990s
1990: BOB opened an OBU in Mauritius, but closed its representative office in
Sydney.
1991: BOB took over the London branches of Union Bank of India and Punjab &
Sind Bank (P&S). P&Ss branch had been established before 1970 and Union
Banks after 1980. The Reserve Bank of India ordered the takeover of the two
following the banks' involvement in the Sethia fraud in 1987 and subsequent
losses.
1992 BOB incorporated its operations in Kenya into a local subsidiary with a small
tranche of shares quoted on the Nairobi Stock Exchange.
1993: BOB closed its OBU in Bahrain.
1996: BOB Bank entered the capital market in December with an Initial Public
Offering (IPO). The Government of India is still the largest shareholder, owning
66% of the bank's equity.
1997: BOB opened a branch in Durban.
1998: BOB bought out its partners in IUB International Finance in Hong Kong.
Apparently this was a response to regulatory changes following Hong Kongs
reversion to the Peoples Republic of China. The now wholly owned subsidiary

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Became Bank of Baroda (Hong Kong), a restricted license bank.BOB also acquired
Punjab Cooperative Bank in a rescue.
1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time,
Bareilly had 64 branches, including four in Delhi. In Guyana, BOB incorporated its
branch as a subsidiary, Bank of Baroda Guyana.BOB added a branch in Mauritius,
but closed its Harrow Branch in London.
2000s
2000: BOB established Bank of Baroda (Botswana).
2002: BOB acquired Benares State Bank in Benares at the Reserve Bank of Indias
request.
2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange
(USE).
2003: BOB opened an OBU in Mumbai.
2004: BOB acquired the failed Gujarat Local Area Bank, and returned to Tanzania
by establishing a subsidiary in Dar-es-Salaam.BOB also opened a representative
office each in Kuala Lumpur, Malaysia, and Guangdong, PRC.
2005: The Reserve Bank of India (RBI) has approved a joint venture between
BOB, Bank of Maharashtra (BOM), and Oriental Bank of Commerce (OBC) to set
up a bank in Malaysia. The new bank will reside in Kuala Lumpur, which has a
large population of Indians. The initial capital required will be US$78 million;
BOB will invest 40%, and the other two banks will invest 30% each. The JV is
awaiting approval from the Malaysian Central Bank. Bank has built and
commissioned its own State-of-the-Art Global Data Centre (DC) in Mumbai for
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running its centralized banking solution (CBS) and other applications in 1900+
branches across India and 20 other counties where the Bank isoperating.BOB also
opened a representative office in Thailand.
2006: BOB established an Offshore Banking Unit (OBU) in Singapore.
2007: In its centenary year, BOB's total business crossed 2.09lakhcrores, its
branches crossed 1000, and its global customer base 29 million people.
2008: BOB opened a branch in Guangzhou, China (02/08/2008).
2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling
it to trade as a bank in New Zealand (2009/09/01).A saga of vision and mission of
enterprise.

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(B) Vision:
It has been a long and eventful journey of almost a century across 25 countries.
Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech
Baroda Corporate Centre in Mumbai is a saga of vision, enterprise, financial
prudence and corporate governance. It all started with a visionary Maharaja's
uncanny foresight into the future of trade and enterprising in his country. On 20th
July 1908, under the Companies Act of 1897, and with a paid up capital of Rs
10Lacs started the legend that has now translated into a strong, trustworthy
financial body.
THE BANK OF BARODA
It has been a wisely orchestrated growth, involving corporate wisdom, social pride
and the vision of helping others grow, and growing itself in turn. 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."It is a story scripted in corporate
wisdom and social pride. It is a story crafted in private capital, princely patronage
and state ownership. It is a story of ordinary bankers and their extraordinary
contribution in the ascent of Bank of Baroda to the formidable heights of corporate
glory. It is a story that needs to be shared with all those millions of people customers, stakeholders, employees & the public at large - who in
ample measure, have contributed to the making of an institution.

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(C)Mission:
To be a top ranking National Bank of International Standards committed to
augmenting stakeholders' value through concern, care and competence.
(D)BOB Logo
Our new logo is a unique representation of a universal symbol. It comprises dual
B letter forms 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 our customers, we
seek to be one-stop, reliable partners 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. We also recognize that our bank is characterized by
diversity. Our network of branches spans geographical and cultural boundaries and
rural-urban divides. Our 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. Our 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 globalised 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.
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(E) Global Presence of Bank of Baroda

Global Presence
Australia
Bahamas
Bahrain
Belgium
Botswana
China
Fiji Islands
Ghana
Guyana
Hong Kong
Kenya
Mauritius
Malaysia
Seychelles
South Africa
Singapore
Sultanate of Oman
Tanzania
Trinidad & Tobago
United States of America
United Arab Emirates
United Kingdom

(F) The Initiative

Marketing Initiatives

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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. Technology was adopted to add punch.
Employees across the board were inculcated with the marketing concept.
Aggressive marketing became the new business philosophy.
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 Initiatives

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New norms for capital adequacy required new capital management strategies. In
1995 the Bank raised Rs 300crores through a Bond issue. In 1996 the Bank tapped
the capital25market with an IPO of Rs 850crores, despite adverse market
conditions prevailing then, the issue was over 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. Theebanking products used state of the art technologies like digital certificates, smart
card authentication and secure networking. The new IT strategy, in the process of
implementation will see the deployment of Core Banking Systems, Multi Service
Transaction Switch, Payment Gateways - all geared to deliver convenience
banking.

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Quality Initiatives
In its relentless striving for quality perfection, the Bank secured the
ISO 9001:2000certification for15 branches. By end of the current financial, the Bank
is targeting 54more branches for this quality certification.
The Future Revolutionary and discontinuous changes in the operating environment
is 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 fullfledged global 26 treasury operations. Towards creating a future Bank of Baroda,
the Bank has adopted are evolutionary new business strategy that will be enabled
by a revolutionary new ITstrategy. Actioning this strategy will position Bank of
Baroda as India's uncontested premier bank. 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. And the Bank will emerge stronger, more resilient and positioned to
become India's first bank of truly global standards. The relocation to the imposing
Baroda Corporate Centre is a true reflection of the Bank's resolve to move ahead of
the times.

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4. HUMAN RESOURCES
Bank of Baroda has the tradition of continuous enrichment of its human asset so that
they deliver value to the business. In the ongoing Business Transformation
Programme, our PEOPLE play a vital role and are one of the key business
enablers. Under its plan of organizational transformation through people processes
and systems, the Bank has launched a few innovative employee centric initiatives
and has also undertaken revamp of key systems and practices.
(A)HR Objectives
To initiate & institutionalize globally competitive HR practices in the Bank in our pursuit
to become a Bank of international standards and to become an employer of preferred
choice;
To put in place relevant HRD strategies and use modern methodologies to
undertake organizational renewal;
To identify and nurture talent, bring about marked changes in the mindset of
employees at all levels so as to enhance HR Quality;
To create a performance-driven culture and an exciting workplace for the employees
To create a pool of entrepreneurial managers and business leaders for future;
To inculcate a strong and effective sales and service culture across levels in the
organization in order to generate strong stakeholder affiliation;

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To create a learning organization for employees intellectual growth and creativity;

and to re-skill the workforce to operate in digitally enabled modern core banking
environment.

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The Strategic HR Business Model adopted by Bank of Baroda incorporates its

HR Mission and Philosophy and is focused towards attainment of long-term
organizational goals. A very strong Organizational Leadership at different levels forms
the key link in the Model. These are;
Strategic Leadership - Corporate level II.
Business Leadership - Zonal & Regional level III.
Operational Leadership - Business unit level i.e. branch

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The two vital Human Resource sub-systems i.e. HR Planning & Management SubSystem & Competency Based HRD Sub-System shape the very crucial Performance
Environment within the Bank which facilitates development of enabling capabilities
of people. Through proper developmental inputs, Positive Attitude &Right Mindset is
created among people. Through proper Communication Medium and an Organizational
Culture of sharing, openness, collaboration & confrontation, autonomy etc., people
in the organization are facilitated to give their best output (performance).The
Model is adequately supported by a suitable Learning Platform, which imparts proper
Knowledge and enhances Learning among people (functional, behavioural etc)so
that their Competence increases and their potential could be properly leveraged
for greater Individual and Organizational Effectiveness. These create proper Employee
Motivation, which ultimately facilitates Goal.

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(B)HR Initiatives

Board level approved strategy paper outlining various organization wide

HR reforms /interventions
HR Steering Committee
Board Level HR Committee for piloting HR initiatives and reforms.
The Committee comprises of Directors and leading professionals as
Experts from outside the Bank
KHOJ
Organization wide Talent identification and Development Programme
for Officers and Clerks (Through scientific process of identification and
selection, employees with high potential to be deployed in key business
are as. Such employees to be provided with suitable grooming and
career growth opportunities)
PARAMARSH
Employees Counseling Center(Counseling centers for providing
psychological assistance and guidance to overcome their stress,
complexities and conflicts in order to lead a better life. This is totally
confidential between the employee and the counselor
HR RESOURCING POLICY
New HR Resourcing Policy formulate to take care of various
recruitment needs of the bank consequent upon abolition of the
erstwhile Banking Services Recruitment Board (BSRB)
Performance Appraisal System for Clerical and Sub-Staf
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 Massive Recruitment of Specialist officers and also graduates from B-Schools through
campus recruitment
To take care of the Banks requirement in different specialized areas like IT,
Treasury, HR, Marketing &Sales, Credit, International Business etc (
Around 500 officers being recruited
A New Induction cum Grooming Programme for Young Officers
With the objective of developing future managers and leaders and
for deployment in key areas, a re-vamped Officers Induction cum
Grooming Programme is launched.
Fast Track Career Growth Opportunities for Executives and Officers.
In order to provide fast track growth opportunities to aspiring
Executives and Officers, promotional opportunities have been
provided.

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5. TRAINING

To keep up with the fast changing business scenario, product profile, processes,
customer preferences, numerous technology applications and compliance &
regulatory requirements, training has become a centre-stage activity. The bank
conducted 342 training programs in the area of CBS covering 6234 employees
during the year. To provide appropriate thrust in the area of credit and risk
management, 193 programmes were conducted in other functional areas covering
4595 employees during the year. The resources of external Training Institutions
and Business schools were tapped for training employees in the functional areas
where in-house expertise was not available. 741 Officers and Executives attended
training programmes in specialized areas at various external training institutions
and reputed Business Schools. Also 20 Officers/Executives attended training
overseas.
A Leadership Development Program Project LEAP
Post-2009 technology environment, competitive compulsions, entry of foreign
banks, M&A will all tend to change the course of banking necessitating new breed
of leaders at different levels. So managing & leading a financial services
organization in such an environment would be a new challenge for future leaders.
Further, One of the key drivers for market leadership is the banks internal
leadership. It is in response to this that the project LEAP (Leadership enhancement
and appreciation process) was conceived and launched aimed to groom the
executives in leadership and capability building. Under this program of Bank Of
Baroda, nearby three hundred executives has been groomed in leadership in a
phased manner.

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Its rigorous process involves

To identify a competency framework for future leaders in the Bank.
Administration of psychometric instruments and 360-degree feedback for each
identified executive for building on their strength and working in the areas where
development is needed.
Classroom Orientation & Action Learning Projects.
Succession Planning

Another is KHOJ-For talent Identification and grooming

KHOJ initially was initiated as an in-house talent identification and development
exercise in 2005. An element of self-development and career planning is built into
the system, as this is a voluntary exercise where aspiring employees apply for
selection for grooming in various areas they perceive as their areas of strength in
our operations. Encouraged by the huge response to the initiative, KHOJ exercise
has been repeated in 2006 and in2007.Candidates selected under KHOJ are
groomed, placed in the area of operation of their choice. As part of their
development many are identified as change champions in many of the new
initiatives. Mentors are assigned for facilitating their grooming. Exclusive
Conclaves of KHOJ selectees were organized. In order to make the KHOJ
selectees a vibrant and visible group, due weight age is given to their contribution
in career progression, rewards, special assignments, etc.

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6.PROMOTION
The present procedure of recruitment and promotion in the banks has evolved over
the years in an ad hoc man With the objective of bringing an organization wide
performance culture in the organization, hitherto un employees in the Clerical and
Sub-Staff cadre brought in under a new performance appraisal system. To take care
of the Banks requirement in different specialized areas like IT, Treasury, HR,
Marketing &Credit, International Business etc. In most of the central government
department there is provision for time bound promotion and hence question of
stagnation in particular scale does not arise. It is banks that even after completing
twenty or thirty years of service in a particular scale promotion is not given to an
employee. (Now-a-days Interview is a killer injection in the pocket of
management, which can be injected to any good or bad performer in promotion
process as per whims, and fancies of the interviewer).When leaders and bank
management can give relief to retired employees In order to provide fast track
growth opportunities to aspiring Executives and Officers, promotional offor have
been provided. According to Anurag Khanna, chairman and managing director of
Bank net India, a banking research conew recruitments are to keep pace with the
banks expansion plans. The banks are adopting fast-track promot fill in any
management gap, said Khanna. We are battling private and foreign banks with
public sector tools, said Dipankar Mukherjee, general human resources and
marketing at Bank of Baroda. Low salary, tough working conditions, frequent
transfers and an opaque promotion policy deter public employees from working
effectively. Bank of Baroda wanted differential wages for their employees but they
could not move ahead with their plan unions opposed that. Titles for the officer
cadre start from assistant manager, deputy manager, manager, chief manager,
general managing director and the chairman accordingly. Though the pay scale
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slightly varies from bank to bank due to many reasons like the working place viz.
metro areas the basic scale remains the same for every public sector bank. The
employees are promoted on the basis of their score in the exams taken by the bank.
It includes written ex-interview. It is taken time to time. There are some
qualifications required for appearing in the exam.
The powers and duties of its officers and employees
All the officers from JMGS I to TEGS VI grade of the bank, working in branches
have certain discretionary lending and administrative powers depending upon their
positions. The Board decides the delegation of such powers of various grades of
officials. These powers are revised periodically, depending upon the organizations
requirement and also Government / RBI guidelines. Whether to sanction a loan or
not, is the absolute discretion of the concerned sanctioning authority of the bank
and such discretion is exercised, after taking into consideration the relevant facts
and circumstances of each case.

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The procedure followed in the decision-making process, including channels of

supervision and accountability.
There is a well-defined system in the Bank regarding decision-making process. The
Board takes lending and administrative decisions at various levels from JMGS I to
Top Executive grade Scale VII and also by Executive Director and Chairman &
Managing Director depending upon their positions as per the discretionary lending
powers delegated to them. Branches receive applications for credit facilities and
recommend to the appropriate sanctioning authority. In the case of major retail loan
products applications are processed at branches and Centralised Credit Processing
Cells at select centers. There is a well-defined organizational structure and clear
system of accountability based on RBI / CVC guidelines. All credit decisions
approved by any sanctioning authority are reported to the next higher authority for
control purpose. The system of exercising proper delegation of power and
submission of control reports is in place and they are monitored by control officers
and through internal inspection.

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7.COMPETITORS
Company
SBI
Bank of India
Bank of Baroda
IDBI
Indian Bank Ltd.
Dena Bank Ltd.
Vijaya Bank
PNB

Sales
637884.34
163473.45
150915.67
116316.27
68303.30
34474.95
52378.65
193621.63

Current Price
2269.45
385.00
511.30
127.45
174.05
83.25
51.95
906.85

Change (%)
1.99
-0.21
-0.81
0.08
0.26
-0.89
-0.76
-1.07

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8.Business Strategies
BOB intend to enhance our position as a cost efficient and customer focused
institution that provides comprehensive banking and related services, with
particular emphasis on the following strategies.
Implement new initiatives to accomplish total customer centricity.
BOB continue to implement new information technology and other initiatives to
provide total customer centricity and have made advances in the networking,
computerization and interconnectivity of our branches, ATMs and other delivery
channels.
As part of our strategy to provide our customers with the best on-demand service,
BOB have commenced a comprehensive technology enabled business
transformation project.BOB have entered into an agreement with Hewlett Packard
(HP) to assist us in delivering a uniform, portal-based IT infrastructure to cover
both our domestic and international operations. Through this project BOB will
implement and manage an enterprise-wide service-oriented architecture including,
among others, core banking, phone banking, Internet banking, call centre, delivery
channel integration, risk and performance management, financial analysis and
planning, customer relationship management, data warehousing, enterprise general
ledger, global treasury, human resources management system and cheque
truncation system. The infrastructure will allow us to realign the way in which
BOB interact with our employees and conduct business with our customers and
business partners. It will also enable us to be compliant with Basel II norms within
the prescribed time limit whilst fulfilling the requirements of regulators in various
jurisdictions. Our aims that all our branches and offices be brought under our
private network in order to provide our customers with total customer centricity
and service their needs on an anywhere anytime basis across the globe. BOB
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believe this will help us to compete and excel in the increasingly challenging and
competitive domestic and global banking environments. Our additional customer
service initiatives include providing customer services at certain branches from 8
a.m. to 8 p.m., operating select 24-hour branches, providing value added services
on ATMs and introducing low cost rural ATMs.
Grow our international operations:
BOB have maintained an international presence for the past 52 years and BOB
intend to continue to grow our global operations. Our international branches,
Subsidiaries and Associate are focused on providing retail banking, structured
products and BOB management services and, along with our representative offices,
allow us to focus on asset creation and to develop cross border business by
providing trade and project finance, remittances, syndications and correspondent
banking services. In addition, BOB are looking to grow our global loan syndication
business through our dedicated syndication center located in our London branch.
BOB recently opened a branch in Leicester in the United Kingdom and a
representative office in Bangkok in Thailand.BOB have received approval from the
RBI and are awaiting host country approval for the opening of branches in Houston
(USA), Hong Kong Bangladesh, Maldives and an OBU at Singapore.
RBI approvals have been received for the opening of new offices in, Canada,
New Zealand, Sri Lanka and Trinidad and Tobago and Isle of Man. BOB will
continue to look for attractive opportunities to expand our international reach and
grow our business outside India.
Entering new areas businesses, alliances and strategic acquisitions:
BOB intend to expand into new lines of business, which are complementary to
our existing product and service lines such as life insurance and stock broking.
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BOB intend to develop these businesses by entering into joint ventures and
alliances with leading product and service suppliers and, in some cases, may also
make strategic acquisitions.BOB also intend to promote the cross selling of our
own and third party products in order to augment our fee-based revenue.
Reduce cost of funds:
BOB have achieved a low overall cost of funds through a large base of low-cost
deposits, with total deposits representing 85.92% of our funding as of March 31,
2005. Our low cost deposits, both current and savings, constituted 36.45 % of our
total deposits as of that date. As of September 30, 2005, our low cost deposits
constituted 38.32% of our total deposits. Our total deposits represented 84.78% of
our funds as of that date. BOB believe BOB can enlarge our low-cost funding base
by leveraging our extensive branch network and large customer base, particularly
in the rural areas where many of the
65deposits are low-cost savings deposits. In particular, BOB are focused on the
retail rural section emphasizing low interest savings deposits. Building our
corporate image and our Bank of Baroda brand BOB intend to continue to
enhance our brand recognition in the marketplace through our brand building
efforts. BOB have undertaken various communication and promotional initiatives
such as developing and introducing our new logo, appointing a brand ambassador,
and launching product focused campaigns. BOB believe that these initiatives, as
BOB, will enhance the visibility of our brand name and strengthen our recognition
as a premiere Indian bank.

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Strengthen our priority sector banking business:

BOB believe that priority sectors (including agriculture and small-scale industry)
offer large and potentially profitable growth opportunities. India has large
unexploited land resources and a variety of agro-climatic zones. It is one of the
largest producers of milk, cereals, vegetables and fruits. Approximately 23.0% of
Indias GDP is derived from agriculture. The industry supports approximately twothirds of Indias population and accounts for 14.7% of export earnings. BOB have
1,709 branches in rural and semi-urban centers and BOB intend to maintain and
enhance our position as one of the leading banks for agricultural lending in India.
BOB have a nationwide presence in the agriculture and small-scale industry
sectors. BOB intend to further expand our agriculture and small-scale industry
sector banking activities by establishing more small-scale industry branches. BOB
have identified over 500 of our rural branches to target consumers for intensive
farm credit lending. BOB see increased potential for credit deployment in
agricultural export zones throughout the country. Another aspect of our strategy is
to further strengthen our ties with the agricultural community as BOB as related
manufacturers. For example, BOB have entered tie-ups with eight tractormanufacturing companies to promote investment credit, and BOB have also
initiated a special scheme for financing the purchase of second hand farming
equipment.
Bank of Baroda - 5 yr Consolidated Performance
Bank of Baroda is fast trying to catch up with its private sector counterparts! While
5yr growth CAGR may seem poor at ~16%, FY08 has seen handsome spurts in
growth. Interest Income and Total Income grew by over 30 percent. Bank of
Baroda has now emerged as one of the most cost-efficient banks, beating its private
sector counterparts HDFC Bank and ICICI Bank and even the smaller

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and nimbler Axis Bank handsomely. It shows decent margins and return ratios but
the stock is still languishing (Apr 2 2009) at less than consolidated book.
Efficiency Ratio
The efficiency ratio or cost to income ratio, measures non-interest expense, or
operating costs, as a percentage of income. Basically it tells you how efficiently the
bank is managed. Many good banks have efficiency ratios under 55% (lower the
better) Cost Efficiency ratio has seen significant improvements in the last 3 years
with FY08cost-efficiency ratio standing at ~33 percent; beats its private sector
peers HDFC Bank, ICICI Bank, and even the smaller, nimbler Axis Bank
handsomely and rivals the much smaller Yes Bank.
Efficiency Ratio
The efficiency ratio or cost to income ratio, measures non-interest expense, or
operating costs, as a percentage of income. Basically it tells you how efficiently the
bank is managed. Many good banks have efficiency ratios under 55% (lower the
better) Cost Efficiency ratio has seen significant improvements in the last 3 years
with FY08cost-efficiency ratio standing at ~33 percent; beats its private sector
peers HDFC Bank, ICICI Bank, and even the smaller, nimbler Axis Bank
handsomely and rivals the much smaller Yes Bank.
Net Interest Margins (NIM)
Another simple measure to watch is net interest margin, which looks at net interest
income as a percentage of average earning assets. Track margins over time to get a
feel for the trend. Net Interest margins have been around the 3 percent mark. FY08
has shown NIMs coming down a bit to 2.9 percent.
Strong Revenues Historically many of the best-performing bank investments have
been those that have proven capable of above-average revenue growth While 5yr
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growth CAGR may seem poor at ~16%, FY08 growth has been good. Interest
Income and Total Income growth stands at over 30 percent
Bank of Baroda Q2 profit jumps 60 pct
- Public sector lender Bank of Baroda (BOB) reported a jump of 60 per cent in net
profitto Rs 634.18crore for the second quarter ended September over the
corresponding period a year earlier.

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9.CONLUSION
Bank of Baroda an International bank of India. As the tag line of the bank
suggests it is the bank which has stepped in the global market and has left its foot
prints everywhere. Bank of Baroda is an organization which had believed in the
saving that everyone has to change with the time. BOB changed its logo in 2005
and started its new journey. While visiting the BOB and after taking to the staff
members we have found that BOB has reached the Zenith today. It has also been
ranked as the top 25th organization by fortune 500 2009 companies.BOB has
always provided the good services and hospitality to its customers the all branched
have been applied with core banking services. Most of the branches have
12working hours. From the journey of BOB till date, our group has come to a
conclusion that BOB has struggled and survived only due to its mission and vision;
its organization structure and also due to its business strategies. Being the budding
managers of the future we learned that every organization has to accept the change
at some point of time to be the marketleader.BOB has given a new meaning to the
banking by understanding the needs of its customers. It has also provided a
privilege to India by establishing its branches abroad. Lastly, we would like to
conclude by saying that BOB is a gem to India. An organization writing new
stories.

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10.RECCOMENDATIONS
After studying about BOB our group would like the following recommendations:
BOB needs to increase its number of ATMs in the country. Especially in
metropolitan cities. This is because today people dont like standing in
queues for withdrawing money.
Bank of Baroda did very well when Rahul Dravid was endorsed as its brand
ambassadors. Today BOB has no ambassadors. Therefore it should endorse
someone as their icon.
BOB is not very much liked by the youths of the country. The middle aged
and old aged people use it more. Therefore BOB should now concentrate on
young generation. It has a huge market in them.

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11.LIST OF REFERENCES
http://www.bankofbaroda.com/
http://www.bankofbaroda.com/recruitment.asp
http://finance.indiamart.com/investment_in_india/bank_of_baroda.html
http://en.wikipedia.org/wiki/Bank_of_baroda
http://www.moneycontrol.com/company-article/bank-of- baroda/news/BOB
http://www.citefin.com/1373-history-banking-india.html
http://www.studentsguide.in/careers-in-banking-finance-insurance/historyof-banking-in-india.html
http://business.mapsofindia.com/banks-in-india/bank-of-baroda-creditcard.html

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12.BIBLIOGRAPHY
Robbins Stephen P., Judge Timothy A, Sanghi Seema, Organizational
Behaviour 12th Edition
Bovee,Thill, and Schatzman , Business Communication Today,9th edition
Aswathappa K., Essantials Of Business Environment, 6th Edition
Baroda Next; Annual Report 2008-09

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13.GLOSSARY
BSE Bombay Stock Exchange
OBU Offshore Banking Unit
IPO

Initial Public Offering

ISO

International organization for standardization

HRD Human resource Development

BSRB Banking Service Recruitment Board
GM General Manager
DGM Deputy General Manager
AGM Assistant General Manager
HRM Human Resource Management
IRS Internal Revenue Service
SME Small and Medium Enterprises
CAGR Compound Annual Growth Rate
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CMD Chief Managing Director

ATM Automated Teller Machine
DEMOGRAPHIC DIVIDEND The demographic dividend is a rise in therate
of economic growth due to a rising share of working age people in a population
ORGANISATIONAL CULTURE - Specific collection of values and norms
that are shared by people and groups in an organization and control the way they
interact with each other.

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