A study of retail liability products and ways to

augment it.

Aradhana Kumari
147503
BBM 5th Semester
 Contents

• Introduction
• Retail Banking.

• Retail liability Products.

 Saving Account
 Current Account
 Fixed Deposit Account

• Ways to augment Retail Liability Products.

• Conclusion
 Introduction

• The Bank of Baroda was established in the year 1908 in Baroda.

Ever since its inception, the bank has been growing and expanding its
branches successfully.

• At the turn of a century, the bank has its presence in 25 countries across the
world. Bank of Baroda has progressively taken a step towards commitment
and values by providing uncompromising standards of service to its
customers, stakeholders, employees and others.
• Headquarters: Vadodra, is the 3rd largest city in the Western Indian State
of Gujrat.

• C.E.O: P.S Jayakumar

• Bank of Baroda (BoB) was founded by Maharaja Sayajirao Gaekwad in
July 1908.
• It started with a paid up capital of Rs. 10 lakh. Bank of Baroda is a pioneer
in various customer centric initiatives in the Indian banking sector.
• Ever since it’s rebranding in 2005, bank has consistently promoted its
major strengths viz. large international presence; technological
advancement and superior customer service etc.

• The sub brand has been reinforced by alternate delivery channels such as
internet banking, ATMs, mobile banking etc. and robust delivery outfits
like Retail Loan Factories, SME Loan Factories, City Sales Office etc.

• Presently it has a network of 3454 branches across India and 86 branches

overseas, spread at Australia, Bahamas, Bahrain, Belgium, Botswana,
China, Fiji islands, Ghana, Guyana, Hong Kong, Kenya, Mauritius,
Malaysia, South Africa, Singapore, Oman, Tanzania, Thailand, Trinidad,
Uganda, UAE, UK, US and Zambia.
 Business:

• Retail banking: It offers products and services such as deposits, loans,

credit and debit cards, Demat services, ECS (electronic clearing services,
government business, etc.

• Rural and agri banking: It offers products and services such as deposits,
agricultural loans, lockers services, etc. to rural customers and agricultural
sector.

• Corporate banking: It provides project finance, film finance, foreign

currency loans, working capital finance, treasury products, etc. to the
corporate sector.
 A saga of vision and enterprise:
• 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 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.
 What is their mission statement?

To be a top ranking National Bank of International Standards committed to

augmenting stake holders' value through concern, care and competence.
 LOGO:

Our new logo is a unique representation of a universal symbol. It comprises dual ‘B’
letterforms that hold the rays of the rising sun. We call this the Baroda Sun.

The sun is an excellent representation of what our bank stands for.

• It is the single most powerful source of light and energy – its far reaching rays
dispel darkness to illuminate everything they touch.
• To our customers, we seek to be a one-stop, reliable partner who will help them
address different financial needs.
• To our employees, we offer rewarding careers and to our investors and business
partners, maximum return on their investment.

• The single-color, compelling vermillion palette has been carefully chosen, for its
distinctiveness as it stands for hope and energy.
 Products & Services of BoB:

• Retail Banking: It offers products and services such as deposits, loans, credit and debit
cards etc.

• Rural/Agri Banking: It offers products and services such as deposits, agricultural loans,
lockers services, etc. to rural customers and agricultural sector.

• Demat: The banks help their customers with Demat to transfer their funds online with
convenience and comfort.

• Product Enquiry

• Internet Banking

• Interest Rates: The banks provides various interest rates.

• Deposit Products: Various Products provided to the customers.
• ATM / Debit Cards:
 Approaches:

• Prepare excel sheet of income tax (form no. 15H).

- it is made by an individual who is the age of 60 yrs. or more claiming certain
incomes without deduction of tax.

• Vouchers:
- counted the number of debit and credit.
- January 2015- June 2016.

• Helped less-educated people in filling the form.

A study of retail liability products and
ways to augment it.
 Retail Banking:
Retail banks are the high street banks we are all familiar with. They take
deposits from individuals, provide saving facilities and pay interest on these
accounts.

They also lend money to individuals, in the form of loans and overdrafts, and
charge interest on the money they lend. They provide a range of other financial
services.
 Retail Liability Products
Mostly banks have four types of deposit accounts, namely



However, in recent years, due to ever increasing competition, some banks
have introduced new products, which combine the features of above two or
more types of deposit accounts.

These are known by different names in different banks, examples, 2-in-1

deposits, Smart Deposits, Power Saving Deposits, Automatic Sweep Deposits
etc. However, these have not been very popular among the public.
 Retail Liability
Products

Term Deposit/
Saving Account Current Account
Fixed Deposit
• Saving Bank Account is an ideal account.
• It is suitable for Residents and Non Residents, Charities, Clubs, Association and
Trusts.
• One of the most popular deposits for individual accounts.
• These accounts not only provide cheque facility but also have a lot of flexibility for
deposits and withdrawal of funds from the account.

• Most of the banks have rules for the maximum number of withdrawals in a period
and the maximum amount of withdrawal, but hardly any bank enforces these.

• However, banks have every right to enforce such restrictions if it is felt that the
account is being misused as a current account.
• Till 24/10/2011, the interest on Saving Bank Accounts was regulered by RBI and it
was fixed at 4.00% on daily balance basis.

• Bank of Baroda also gives 4.00% interest in saving account.

Here are the interest rates of Bank of Baroda
according to the duration:

Days Interest Rate

• 7- 14 4.50%
• 15- 45 4.50%
• 46- 90 6.50%
• 91- 180 6.50%
• 181-270 7.30%

• 271- less than 1 year 7.30%

• 1 Year – 443 Days 7.30%
• 445 – 3 Year 7.30%
• 3 Year- 10 Year 7.30%
 The highest Saving Account interest rate is being offered by :

• The Ratnakar Bank which at 7.1% for balance above Rs 10 lakh and 6.1% for
balance above 1 lakh and 5.1% below that,

• Yes Bank has the second best offering at 7% for balance above 3 lakh and 7% for
all others.

• Four small banks Kotak Mahindra Bank, Indusind Bank, Bandhan Bank and
Lakshmi Vilas Bank are offering interest rates of 4.25% to 6% depending on
your balance of savings account. All other banks are still offering 4% irrespective
of the balance.
 Current Account
• Ideal for firm, companies, institutions, and individuals etc., who need
frequent banking facility. This is one of the most basic and flexible deposit
options.

• Basically meant for businessmen and are never used for the purpose of
investment or savings.

• Cheque book facility is provided and the account holder can deposit all types
of the Cheque and drafts in their name or endorsed in the favour by third
parties.

• No interest is paid by banks on these accounts. On the other hand, bank

charges certain service charges, on such accounts.
 Features of Current Account:

(a) The main objective of Current Account holders in opening these accounts is to
enable them (mostly businessmen) to conduct their business transactions
smoothly.

(b) There are no restrictions on the number of times deposit in cash / cheque can
be made or the amount of such deposits;

(c) Usually banks do not have any interest on such current accounts. However,
in recent times some banks have introduced special current accounts where
interest (as per banks' own guidelines) is paid.

(d) The current accounts do not have any fixed maturity as these are on
continuous basis accounts.
 Fixed Deposit

A bank financial instrument, where money is invested at a fixed rate for fixed
period (also called as Term Deposits).

All Banks in India (including other banks) offer fixed deposits schemes with a
wide range of tenures for periods from 7 days to 10 years. These are also popularly
known as FD accounts.

However, in some other countries these are known as "Term Deposits" or even
called "Bond". The term "fixed" in Fixed Deposits (FD) denotes the period of
maturity or tenor.
 Contd…
• Some banks introduced variable interest fixed deposits. The rate of interest on
such deposits keep on varying with the prevalent market rates.

• The rate of interest for Fixed Deposits differs from bank to bank. The present
trends indicate that private sector and foreign banks offer higher rate of
interest.

• However, most of the banks have also facility to pay/ credit interest in saving
account at the end of every quarter. If one desires to get interest paid every
month, then the interest paid will be at a marginal discounted rate.
• In the changed computerized environment, now the Interest payable on Fixed
Deposit can also be easily transferred on due dates to Savings Bank or Current
Account of the customers.
 Comparison of fixed deposit interest rates by Indian banks –
2016

• Bandhan Bank
• 1 year to less than 3 years 8.25

• IDFC Bank
• 366 to 400 days 8.25

• IDFC Bank
• 271 - 365 days 8.00

• DCB Bank
• 24 months to 60 months 8.00

• IDFC Bank
• 271 to 365 days & 401 to 540 days 8.00
• Bandhan Bank
• 3 year to < 5 years 8.00

• DCB Bank
• 18 months to less than 24 months 7.90

• DCB Bank
• More than 60 months to 120 months 7.90

• Lakshmi Vilas Bank

• 18 Months to less than 5 years 7.90

• DCB Bank
• 13 months to less than 18 months 7.85

• DCB Bank
• 12 months to less than 13 months 7.80

• Lakshmi Vilas Bank

• 1 year to < 18 months OR 5 years & above 7.80

• Tamilnad Mercantile Bank Ltd

• 20 months 20 days 7.75
• Yes Bank
• a) 12 Months 10 Days to 12 Months 20 Days

b) 18 Months 8 Days to 18 Months 18 Days 7.75

•
• Karur Vysya Bank
• 1 year and above
• 7.75

• IDBI Bank
• 1yrs to < 2yrs 7.75

• City Union Bank

• 1 year & upto 5 years 7.75

• IDFC Bank
• 541 to 731 days 7.75

• Central Bank of India

• 777 days 7.65
 Schemes of liability products:

In current account, these are for business establishment/ club/

societies, corporate/companies/trusts/HUF/ associations etc.

• Advantage current account:

It makes business banking easy, we will get bank balance certificate once in a
year and free signature certificate once in 3 months.
Minimum balance is 15000/- and in the maximum there is no upper limit.

We can deposit cash at base and local non-base branch is up to 50000 or 10

packets per day, above that Rs.10 per packet.
Contd…
• Premium current account:
Minimum balance is QAB 75000/- and non- maintenance charges is and
maximum balance has no upper limit. Number of transaction has no limit and
free balance certificate is free and also free credit card (for 1st year) and
maximum to 2 partners/ directors.

• Present current account:

Minimum balance is QAB 250000/- and also maximum balance has no upper
limit. We can deposit cash free up to 50000/- or 10 packets and above per day.
• Saving account, we have many schemes Subh saving account, cenetary
saving account, Pension saving account, bachat mitra saving account,
salary advantage saving account, basic saving account, zero balance
account, jeevan suraksha account.

• And, the last products are Term deposits; in this we also have many
products and their schemes like Baroda short term deposits, regular
income plan, regular income cum recurring deposits, tax saving term
deposit, Baroda flexible fixed deposit scheme etc.
 Ways to Augment the Retail Liability
Products:

• ASBA (Application Supported by Blocked Amount)

• Baroda Easypay
• Baroda e-shopping
• Baroda Instapay
• Demat
• Payment Gateway
• RTGS/ NEFT
 ASBA - Application Supported by Blocked Amount

It enables investors to apply for IPO/FPO/NFO issues without making immediate payment. The
application amount is “Blocked” in investor’s Bank account and is released in a proportionate amount on
allotment of shares.

• ASBA Online Facility

• It is simple, instant, secure and available 24x7.

• Eligibility
• All Baroda Connect customers (net banking users) having transaction rights are eligible to utilize the
ASBA Online facility

• Bank of Baroda introduces yet another new functionality for the benefit of the internet banking users
having transaction rights -ASBA.
• Under this functionality, any internet banking user can make application for IPO subscription for
any company. The functionality is user friendly and simple and available 24x7.
Advantages to customers:
• No need to procure & submit IPO application forms from Broker or Bank
• The facility is free of cost to the users
• Facility available 24 x 7. On closing day of an issue, the subscription can be made only
up to 3:00 P.M.
• Easy and convenient to operate from comfort of your home / office. Saves time &
energy.

Baroda Easy Pay:

• The latest Internet banking initiative enables you to operate your account just as you
would in any of our branches. In this person can through the Internet check balance,
request for cheque books and print account details.
 Baroda e- shoppe:
Click ‘n’ shop….it’s easy…it’s quick…it’s secure….

Baroda e Shoppe is designed to facilitate the Bank’s customers to make payments for goods and
services purchased online through Baroda Connect- the Bank’s world class Internet Banking
facility.

Benefits:
• Available to all: All the Net banking (existing & new) users having transaction rights are
eligible to utilize this on-line facility.

• It's simple, convenient, quick and secure: Customers can make payments for goods and
services purchased online in a simple, convenient and seamless manner.
Payments made through Baroda Connect are fast, secure and safe.

• Anytime, anywhere...: Simple and easy to operate - from home / office anytime, anywhere
it save time and energy

• Anything, everything...
Experience a virtual departmental store that gives you the power to purchase almost
everything.
 DEMAT:
• The banks help their customers with Demat to transfer their funds online with
convenience and comfort.

• Demat refers to a deposits that can be used for investing in Financial Institution that can
be used for investing in share and stock and other financial Assets.

• Customers can transfer fund to any other bank (covered under NEFT) through
NEFT by depositing cash less than Rs.50000/-

• No need to issue cheques by investors while subscribing to IPO.

•
• KYC is one time exercise while dealing in securities markets- once KYC is done
through a SEBI registered intermediary (broker, DP, Mutual Funds etc.), you need not
undergo the same process again when you approach another intermediary.
 Baroda e-Gateway (Bank's Internet Payment Gateway):

• To receive payment online from any debit/credit card, net banking (through aggregator)
of more than 34 banks called ‘Baroda e-Gateway’ (Internet Payment Gateway).

• Ideal for Schools and Colleges for Fee Collection, Travel agents, Merchants who wish to
sell online products / services, Associations to receive subscriptions from their members,
Govt. & Semi-Government offices, Municipal Corporations, Electricity Boards and other
Utility Payment Services companies to collect dues/payments from consumers etc.
 Contd…….

Features:

Bank has technology infrastructure, which links the client’s website with its
Payment Gateway.

Bank has implemented latest industry standard security viz. Verified by Visa,
Master Card Secure Code - two factor authentication, 128 bit SSL, continuous
monitoring of server for vulnerability etc. for the safety of cardholder, merchant
and bank.
 Contd…
• Cards affiliated to VISA / Master Card and Net banking of more than 34 banks
(including all Major banks, through our aggregator) are eligible to make
payment irrespective of the card issuing banks.

• Merchant’s bank account is credited with payment amount (in INR) on

subsequent working day (or as per agreed terms). For foreign currency
transaction, fund is usually settled in 3 working days on receipt of proceeds to
bank.

• Quick and easy Integration process.

• Reports (MIS) available at Merchant’s end to view and print reports of

payments received with full details (as per normal industry requirement).
 RTGS/ NEFT

In NEFT we can transfer our funds from any bank branches while RTGS lets individuals and
companies to transfer funds between two banks within a country.

If submit RTGS when the fund is equal to or more than Rs. 2,00,000 and NEFT for less than Rs.
2,00,000.

Benefits:

• Available to all: All Net banking (existing & new) users are eligible to utilize this on-line
facility.

• It's simple, convenient, quick and secure: Funds transfer to other banks is faster, secure and
safe.

• Anytime, anywhere...: Simple and easy to operate - from home / office anytime, anywhere
and it also save time and energy.

• Get more for less: RTGS/NEFT cost less than the conventional modes of remittance such as
DD/MT.
 Conclusion
• There are mainly three types of retail liability products: current, saving and fixed
deposits. These are offer to the customers. The banks provide them many
schemes and facilities to the customers.

• Banks accept various types of deposits from public especially from its clients,
including saving account deposits, recurring account deposits, and fixed
deposits. These deposits are returned whenever the customer demands it or after
a certain time period.

• So the conclusion is that the bank supports their customers from many online
services and easy payments and so they can get their money easy. Retail liability
products help them to secure their money with various interest and schemes.
THANK YOU!!!