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ACKNOWLEDGEMENT

I feel deeply indebted people who have guided me in this project. It would have not been possible to make such an extensive report without help, guidance, and inputs from them. This was all the more significant, since the changes in the banking sector, were of recent origin and relatively less material was available in the form of books or articles or information on the net. Most of my information source has been from professionals & Newspaper articles.

Project guide:MS. VINITA PIMPALE

I would firstly like to express my gratitude towards my guide MS. VINITA PIMPALE for having shown so much of flexibility and guiding in such a way that I was really learning the subject all the time. She showed us a lot of openness in his approach and I would like to thank him for her support in a way that has lead to proper and effective learning.

Also, I am very grateful to all my friends and senior for being by my side always. Without their help and motivation, it would have been impossible to complete my project.

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INDEX

CONTENT PAGE NO.

INTRODUCTION 4

EVALUATON OF BANKS 6

THE RISE OF BARODA SUN 8

THE INITIATIVES 10

PRODUCTS AND SERVICES 13

BOB CARDS 22

LOANS AND FINANCE 26

TREASURY OPERATION 40

INTERNATIONAL TRADE 43

I.T. INFRASTRUCTURE 45

QUESTIONAIRE 54

CONCLUSION 57

EXECUTIVE SUMMARY 59

BIBLIOGRAPHY 61

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INTRODUCTION

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

Today banks are broadly classified into two: Schedule Banks and Non-schedule Banks.

Schedule banks are those banks, which are included in the second schedule of the Reserve Bank Act, 1934. In terms of Sec. 42(6) (a) of the Reserve Bank of India Act, a bank should fulfill the following conditions:

1. It must have a paid up capital and reserves of an aggregate value of not less than Rs.5 lakh;

2. It must satisfy RBI that its affairs are not conducted in a manner detrimental to the depositors;

3. It must be a state co-operative bank, a company under Companies Act, 1956, an institution notified by the Central Government in this behalf or a corporation, or a company incorporated by or under any law in force in any place outside India.

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,

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submission of returns etc. The schedule commercial banks in India comprise of, state bank of India and its associates (8), the other nationalized banks (19), foreign banks, private sector banks, co-operative banks and regional rural banks. As the and of 30th June 2003, there were 300 schedule banks in India having a total network of 64,918 branches among them.

Non-schedule Banks are those joint stock bank s, which are not included in the second schedule of the RBI act because of the failure to reply with the minimum requirements for being scheduled. After the nationalization of 14 commercial banks in 1969, no new private banks were licensed by RBI in the country though there was no legal bank on the entry of private sector banks. The Narsimham committee report of 1991, has envisaged a larger role for private sector banks. In recognition of the need to introduce greater competition with a view to achieving higher productivity and efficiency of the banking system, RBI issued few guideline ins in January 1993 for the entry of private sector banks Also the new bank after being granted license under the Banking Regulation Act, shall be registered as a Public Limited Company under the Companies Act, 1956. Subsequently 9 new commercial banks have been granted license to start banking operations.

Over the last several years, the Government of India have been seized of the problem of weakness that has gripped some parts of the banking system. This weakness became apparent in the early 1990s when, following introduction of internationally accepted prudential accounting norms, banks were required to segregate their performing and non-performing assets and, after providing for those, which are on-performing, build up a minimum level of capital related to risk-weighted assets. Save in a few cases wherein additional capital was needed to support the growing volume of business, the need for repeated capital infusion is on account of chronic weaknesses, which, have been caused by several factors, both internal and external. One would necessarily need to look into their ability to achieve a minimum level of competitive efficiency in order that their operations become profitable on a sustainable basis. Any effort at their restructuring will have to involve operational as well as financial restructuring. 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.

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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.

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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.

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THE RISE OF BARODA SUN

It has been a long and eventful journey for Bank of Baroda. And while it stands at the threshold of history, looking forwards to its centenary celebrations next year, maybe its time to turn back the pages of time, and salute the great moments of its historical saga.

Bank of Baroda began its first page in the history of time on July 20th,1908 when Sir Sayajirao III Gaekwad, the Maharaja of Baroda, set up the Bank in Baroda in a busy market street in Baroda. Two years later, in 1910, the Bank opened its first office branch in Ahmedabad, and the rest as they say is history. The Bank of Baroda has never looked back since then, and today, it has grown to a total asset base of about Rs.1, 133bn (end-march 2006), with a network of over 2, 700 branches and offices and about 670 ATM’s.

Early 50’s was a day and age when international banking was not considered fashionable or too risky for Indian companies, but Baroda followed the Indian communities settled Abroad, especially the affluent NRI Gujratis and set up its first international branch in Kenya 1953. Today, the Bank has expanded its branches to 21 countries worldwide, spanning 4 continents.

Bank of Baroda was nationalized along with 13 other major commercial Banks on 19th July 1969. As India marched from an agricultural economy to an industrial economy, to an international economy Bank of Baroda also evolved at every stage. In the eighties. The Bank’s customer focus initiatives led it to various innovations such as multi-service agency for micro-credit, Gram Vikas Kendras, and launching Indias first ‘Bank Card’, the ‘BOB Card’. Bank of Baroda branch offices opened up in various parts of the country, and around the world. There were also strategic takeovers and mergers of other smaller banks like with Hind Bank, Benaras State Bank, Bareilly Corporation Bank etc.

In 2005, closer to its centenary, the Bank realized that it should opt for a more drastic change in positioning itself to the world. There was a need for revolution, a change of image. A rite of passage from the old to the new, modern, and contemporary.

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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.

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THE INITIATIVE

Marketing Initiatives

The mid-eighties marked the beginning of the shift to a buyers` market. The Bank orchestrated its business strategies around the centrality of the customer. It diversified into areas of merchant banking, housing finance, credit cards and mutual funds. A string of segment specific branches entrenched operations in the profitable markets. Overseas operations were revamped and structural changes intensified in the territories to cater to second generation NRIs. Slowly but surely, the move to become a one stop financial supermarket had been set in motion. Service delivery standards were stipulated.

People Initiatives

Bank of Baroda has always had an immense faith in the infinite potential of its people. This has been historically demonstrated in its recruitment practices, developmental initiatives, placement processes and promotion policies. Strategic HR interventions like, according cross border and cross cultural work exposure to its managers, hiring diverse functional specialists to support line functionaries and complementing the technical competencies of its people by imparting conceptual, managerial and leadership skills, gave the Bank competitive advantage. The elaborate man management policies also made the Bank a breeding ground for business leaders. The Bank provided around a dozen CEOs to the industry- men who went on to build other great institutions. People initiatives were blended with IR initiatives to create an effectively harmonious workplace, where everyone prospered.

Financial Initiative

New norms for capital adequacy required new capital management strategies. In 1995 the Bank raised Rs 300 crores through a Bond issue. In 1996 the Bank tapped the capital market with an IPO of Rs 850 crores, despite adverse market conditions prevailing then, the issue was over subscribed, reflecting the positive public perception of the Bank's fundamental financial strength.

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Digital Initiatives

Bank of Baroda pioneered the shift from manual operating systems to a computerized work environment. Starting with ledgers, to ledger posting machines, through ALPMs, the Bank graduated to the use of UNIX based systems to Mainframes, to client server based Total Branch Mechanization Systems. Today, the Bank has 1918 computerized branches, covering 70% of its network and 91.64% of its business. Alive to the growing complexities of an intensely competitive marketplace and the mounting expectations of customers fuelled by this competition, the Bank reworked its distribution strategy. It ventured beyond the brick and mortar delivery channel into ATMs and the Omni BOB range of anytime, anywhere electronic channels of PC banking, telephone banking.

Quality Initiatives

In its relentless striving for quality perfection, the Bank secured the ISO 9001:2000 certifications for 15 branches. By end of the current financial, the Bank is targeting 54 more branches for this quality certification.

The Future

Revolutionary and discontinuous changes in the operating environment are a stark reminder that business success is 'impermanent'. The emergence of IT as a major driver for change, has accentuated the need to initiate a major transformation program. The conversion to an IT savvy, market driven bank will be a prerequisite to survival and growth. A major and strategic step in hi-tech, was the establishment of the Integrated Treasury branch, as a forerunner to full-fledged global treasury operations.

At Bank of Baroda, change is a journey. It has a beginning. There will be no end. It will be a long and difficult march. The relocation to the imposing Baroda Corporate Centre is a true reflection of the Bank's resolve to move ahead of the times. It will not be out of place now, as it stands on the threshold of a digital era, to echo the same sentiments that guided the Bank in its platinum jubilee year - 'a promising future is the sequel to a glorious past'.

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BANK OF BARODA – NEW LOGO

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

The sun is an excellent representation of what our bank stands for. It is the single most powerful source of light and energy – its far-reaching rays dispel darkness to illuminate everything they touch. At Bank of Baroda, we seek to be the sources that will help all our stakeholders realize their goals. To BOB’s customers, we seek to be a one-stop, reliable partner who will help them address different financial needs. To our employees, we offer rewarding careers and to our investors and business partners, maximum return on their investment.

The single-colour, compelling Vermillion palette has been carefully chosen, for its distinctiveness as it stands for hope and energy.

BOB also recognize that our bank is characterized by diversity. Our network of branches spans geographical and cultural boundaries and rural-urban divides. BOB’s customers come from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face for our brand because it is a universal symbol of dynamism and optimism – it is meaningful for our many audiences and easily decoded by all.

BOB’s new corporate brand identity is much more than a cosmetic change. It is a signal that we recognize and are prepared for new business paradigms in a globalize world. At the same time, we will always stay in touch with our heritage and enduring relationships on which our bank is founded. By adopting a symbol as simple and powerful as the Baroda Sun, we hope to communicate both.

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PRODUCTS OF BANK OF BARODA

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

1. BARODA CURRENT ACCOUNT

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

2. BARODA FLEXIBLE RECURRING DEPOSIT ACCOUNT

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

Key Benefits

Regularizes savings by encouraging a saving habit.

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

3. CAPITAL GAIN ACCOUNT SCHEME, 1988

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

Key Benefits

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

Provision for nomination

4. SAVINGS BANK ACCOUNT

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

Key Benefits

Simplest deposit option available to the depositor.

Easy to operate. Terms and conditions kept lucid to facilitate a layman's understanding. No hidden costs.

Zero balance facility – Your Savings Bank Account with us remain alive even when the balance reaches zero. This facility is only for salaried employees in Central/ State Govt. Public & Private Limited Companies, Agents of Life & General Insurance Corporations and Students. Even for those receiving compensation from govt. for acquisition of their properties.

5. NAGRIK BACHAT KHATA

No frills. No hidden charges. Just banking.

Bank of Baroda launches a new small savings product – Nagrik Bachat Khata

The Indian economy has undergone a significant transformation since the economic reforms in 1991 with the banking sector in the forefront. Nagrik Bachat Khata is a product through which Bank of Baroda intends to extend its services to a vast section of population by making banking easy and convenient.

Key Benefits

Services designed to cater to a vast majority of Indian population

Banking simplified Open account with an initial amount of just Rs. 50/- Zero service charges for non-maintenance of a minimum balance of

Rs. 50/-

OTHER SERVICES:

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REMITTANCES (THE BOB MONEY EXPRESS)

Business relations get strengthened and add to the trust when financial dealings happen on time. The Bank of Baroda remittance facility expedites payments and transfer of funds, saving you and your associates from waiting endlessly for funds to get credited.

This facility is for both retail and corporate customers enabling efficient and easy transfer of money. So no more delays in transfer of funds typical of Banker's Cheque, Demand Drafts, Mail Transfers and Telegraphic Transfers.

Key Benefits

Can be used to transfer money to the beneficiary's account in the same bank, or another bank or even to their residential/office address, thus offering convenient options.

This electronic remittance is the fastest way of transferring money from one place to another, at no additional cost.

Added convenience of hassle free and quick customer service. The facility is available at 345 branches across 53 centres in India

inclusive of all branches in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Mumbai, and Pune.

COLLECTION SERVICES

Outward Bills for Collection:

All branches of Bank of Baroda have the facility of collecting Cheques, Demand Drafts, Interest Warrants, Dividend Warrants, Refund 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:

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

Branches also accept requests for collection of Loan Certificates / FDRs issued by Joint Stock Cos.; prize money of Lottery Tickets, Foreign Currency Notes etc. The bank levies service charges as stipulated from time to time.

Inward Bills for Collection:

Bills of Exchange, Promissory Notes, Hundi's etc. (Clean / Documentary), payable locally but received from outstation branches / banks / parties are treated as "Inward Bills for Collection". Also, Bills received from Bank of Baroda branches and from other banks, directly from drawers or outstation parties are treated as Usance (?) Bills.

BOB Quick:

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

MULTI CITY CHEQUE

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

Who Can Avail The Facility

This facility is being offered to our Current account customers at 201 branches in 16 cities maintaining a balance of over Rs.50, 000/-.

Facilities Provided

The customer will get a personalized "Multi City" cheque book (at par cheque books) from which he can issue AT PAR cheques to his clients situated at MCC centres.

Transaction Limits

Cash Payment of multi-city cheque is not allowed. For other transactions there are no limits.

Charges

Being offered "Free of Charge" at present.

Multi-City Cheque Book

The Cheque book shall have the following features:

1. There would be a notation on top of the cheque as "MULTI-CITY CHEQUE". Similarly, the bottom of left section of the cheque will contain the statement "Payable at par at identified branches at centers listed overleaf except the centre of issue".

2. The customers must be advised that they must not issue multi-city cheques for making local payments.

CASH MANAGEMENT & REMITTANCES

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Bank of Baroda Cash Reach:

A product that enables electronic transfers/ cash remittances at designated bank branches through a specialized network of branches. This facilitates the availability of funds and credits in your account on the same day.

Dial Bank of Baroda:

Bank of Baroda also offers 24 hours tele-banking service through landline/ mobile phones, facilitating the following:

Balance Enquiry, An Enquiry into the last 5 transactions, and, Bank statements on fax for the last 2 months.

NRI SERVICES

BOB offer a red carpet welcome to all NRIs to bank with us. As a premier nationalized bank in India, with comprehensive banking experience world-wide, and by virtue of our consistent track record of profit making since 1908, BOB are confident of meeting all your banking requirements.

BOB’s wide network of foreign branches, offices and Correspondent Relations at convenient business locations all round the world, which is the largest among any bank in India, will ensure a smooth and safe banking experience.

BOB continue to cherish our rich ethnic traditional values and culture, during our personal interface. Yet BOB are speedily repositioning ourselves in the e-millennium era of banking in India, to take care of your changing needs and expectations. BOB’s information technology strategies are directed towards enabling us to provide you with a state of the art customer convenience, thereby facilitating a global banking experience.

BOB understand you, the NRIs, your needs and immensely value your patronage and would like to extend to you our bouquet of products and services.

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OFFSHORE BANKING

Give your FOREX earnings a safe home

In an unpredictable financial world, your well earned money needs a safe home. A home where it can grow. Bank of Baroda takes this opportunity to announce the opening of its first Offshore Banking Unit (OBU) in India at SEEPZ, Mumbai

With years of experience and expertise in overseas banking we are just one of the few banks that have been granted permission by the Government of India to operate OBU within the country. This comes in addition to our already existing OBUs in Mauritius and Bahamas.

So, when you invest your well-earned FOREX with us, you get the expert opinions and services of a bank, which has an international presence in 16 countries through 61 offices and represented by 2800 fully equipped branches spanning the globe.

CORRESPONDENT BANKING

The extensive worldwide network of branches of Bank of Baroda offers Correspondent Banking services to the Indian Banks as well as banks from other countries.

Our branches are capable of providing the services that an international correspondent Bank can offer. All the branches of the Bank are well equipped to handle the business of Correspondent Banking.

The New York, Brussels and London Branches of the Bank are equipped with latest technology and are having trained and experienced staff for handling the maintenance of Nostro accounts in US$, Euro and GBP respectively.

The overseas presence of the Bank is further supported by a large number of correspondent Banks (more than 500) which gives Bank of Baroda access to every corner of the Globe.

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The main services provided are:

1. Collection of bills both Documentary and Clean.

2. Advising / confirming of L/Cs opened by Indian Banks.3. Discounting of Bills drawn under L/Cs as well as outside L/Cs.4. Maintenance of foreign currency accounts (Nostro in US$, Euro, GBP

at New York, Brussels and London respectively) for settlement of transactions (Link).

5. Making foreign currency payments/ remittance on behalf of customers of Indian Banks.

RURAL BANKING SERVICES

Strengthening the rural economy

Rural India contributes a major chunk to the economy every year. To give this sector a stronghold on finance and to enable economic independence, Bank of Baroda has special offerings that extend credit facilities to small and marginal farmers, agricultural labourers and cottage industry entrepreneurs.

With the objective of developing rural economy through promotion of agriculture, trade, commerce, industry and extending credit facilities particularly to small and marginal farmers, agricultural labourers and small entrepreneurs, Bank of Baroda, over the years, has reached out to larger part of rural India. We extend loans for agricultural activities and a host of services for farmers well tuned to the rural market, and aim to make a Self Reliant Rural India.

Faster technology for better service

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

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Choose from our various products and services, that we sincerely feel will put a smile on your face; an investment we would like to bank on forever.

APPRAISAL & MERCHANT BANKING

Bank of Baroda provides its assistance to corporate customers to assess the value of their holdings, in syndicating loans and in consultations for Merchant Banking purposes.

Appraisal:

Bank of Baroda carries out credit and merchant appraisals of all types of business ventures including infrastructure projects by our specialized team of officials at a reasonable cost.

Loan Syndication:

The bank also assists in loan syndication for all kinds of business ventures when a tie-up of business sources is required.

Other Consultations:

Our team is highly capable of advising on parameters of feasibility & viability of an existing / proposed project and suggests measures, if required, for improvement of the business enterprise.

CARDS PROVIDED BY BANK OF BARODA

DEBIT CARD

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

Key Benefits

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

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

The Card allows you to get mini-statements from Bank of Baroda ATMs, or to check the balance in your account, avoiding visits to even our nearest branches.

BOBCARD EXCLUSIVE

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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.

ELIGIBILITYIndividual: Annual income of Rs. 1, 00,000 or more.Company: Paid-up capital of Rs. 5, 00,000 or more.

FEATURES:

· Revolving credit: Upto Rs. 40,000 per month.. Cash withdrawal: Rs.10, 000 per month.. Service charge on revolving credit limit: 1.99%· Service charge on Cash withdrawal: 2% or Rs.100 whichever is higher· Service Charge on ATM Cash withdrawal: 2.5% or min. Rs.100 (Domestic), 3% or min. Rs.150 (Abroad). . Insurance: Free accidental insurance of Rs. 5, 00,000, In case of air-accident Rs. 10, 00,000.. Spouse insurance: Rs. 2, 00,000 (need not be a bob card holder).. Baggage insurance: Rs.10, 000 (for air travel only).. Minimum payment: 5% per month.· Comprehensive monthly statements.· Zero interest period.Cash can also be withdrawn at any branch of BOBCARDS Ltd. or at any of the specified branches of Bank of Baroda

BOBCARD CORPORATE GLOBAL

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

ELIGIBILITY Individual: Not applicable.Company: Turnover of Rs.1 crore or more.

FEATURES · Revolving credit: Upto Rs.3, 00,000 per month. Cash withdrawal: Rs.15, 000 ONWARDS. Service charge on revolving credit limit: 1.99%· Service charge on Cash withdrawal: 2% or Rs.100 whichever is higher (At Bobcards/Bank of Baroda branches).· Service Charge on ATM Cash withdrawal: 2.5% or min. Rs.100 (Domestic), 3% or min. Rs.150 (Abroad).. Insurance: Free personal accidental insurance of Rs.7, 50,000, In case of air-accident Rs. 15, 00,000.. Spouse insurance: Rs.2, 00,000 (need not be a bobcard holder).. Baggage insurance: Rs.10, 000 (for air travel only).. Minimum payment: 5% per month.· Comprehensive monthly statements.· Zero interest period.Cash can be withdrawn at any branch of BOBCARDS Ltd. or at any of the specified branches of Bank of Baroda.

FEES: FREE FOR FIRST YEAR (Principal Rs.1500)

BOBCARD EXCLUSIVE (FOR TODAY'S WOMAN)

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BOBCARD Exclusive Woman Card is a tribute to the glorious women of India who are acclaimed for their contributions to the human civilization. BOBCARDS presents this Card to offer its gratitude to the great women souls of the land. Exclusively designed for the woman of today, this card is packed with great features and benefits.

This card is welcomed at over 29 million Merchant Establishments and over 8, 00,000 ATMs worldwide. This card is affiliated with MasterCard International and is very popular amongst the Bobcards holder.

ELIGIBILITYIndividual: Annual income of Rs. 75,000 or more.

FEATURES· Revolving credit: Upto Rs. 30,000 onwards.. Cash withdrawal: Rs.10, 000 per month.. Service charge on revolving credit limit: 1.99%. Baggage insurance: Rs.10, 000 (for air travel only).. Minimum payment: 5% per month.· Comprehensive monthly statements.

In case of medical emergency for a cardholder, his spouse or a family member, the cardholder can draw cash up to a maximum of Rs.15, 000 from any of our specified branches other than at the city of residence subject to production of satisfactory evidence. This facility is over and above the cash advance facility of Rs.10, 000 p.m.

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Loan to Small & Medium Enterprises

A) SCHEME FOR GRANT OF SHORT TERM LOAN TO SMALL AND MEDIUM SIZED ENTERPRISES

Enterprises GROUP:

Small and Medium-sized corporates, business and trading houses (including partnership firms).

ELIGIBILITY CRITERIA

Continuous credit rating of at least B+ for the last three years

Latest Balance Sheet etc. should be available. Satisfactory financial performance in terms of sales / turnover and

profits. Negative variance, if any, should not be more than 10%. Satisfactory dealings with the Bank for at least five years. No major inspection / audit irregularities.

LOAN AMOUNT:

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

PERIOD:

Not exceeding 180 days – minimum 90 days.

PURPOSE:

To meet temporary shortfall / mismatch in liquidity, for meeting genuine business requirements only.

SECURITY

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First charge / Equitable mortgage of fixed assets of the company / firm or extension of existing first charge / equitable mortgage of fixed assets, ensuring that there is a minimum asset cover of 1.50.

Extension of Charge on current assets for the additional facility ensuring that adequate drawing power is available.

RATE OF INTEREST:

0.5% below the existing rate on working capital limits.

B) SCHEME FOR GRANT OF MEDIUM TERM LOAN TO SMALL AND MEDIUM SIZED ENTERPRISES

NAME OF THE SCHEME: SME Medium Term Loan

ENTERPRISES GROUP:

Small and Medium-sized corporates, business and trading houses (including partnership firms).

ELIGIBILITY CRITERIA

Continuous credit rating of at least B+ for the last three years.

Latest Balance Sheet etc. should be available. Satisfactory financial performance in terms of Sales/turnover and

profits. Negative variance, if any, should not be more than 10%. Debt-equity ratio should not be higher than 2.5:1 and average DSCR

should be not less than 1.5:1. Satisfactory dealings with the Bank for at least Three years. No major inspection / audit irregularities.

LOAN AMOUNT:

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Upto 25% of the existing fund based Working capital limits (depending on the Credit Rating), subject to a minimum of Rs. 25 lakhs and maximum of Rs. 500 lakhs.

PERIOD:

Not exceeding –36- months, to be repaid in equal quarterly or half-yearly installments.

PURPOSE:

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

SECURITY:

First charge / Equitable mortgage of fixed assets of the Company / firm or extension of existing first charge/ equitable mortgage of fixed assets, ensuring that there is a minimum asset cover of 1.50.

RATE OF INTEREST

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

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

PROCESSING CHARGES:

0.1% of the amount of loan, with a minimum of Rs. 25,000/- and maximum of Rs. 50,000/-.

BARODA PERSONAL LOAN

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A wedding in the family, maybe it's high time you surprised your spouse with a priceless gift. Or you simply need to pamper your family with an extended vacation. These are the times when you may need a helping hand. That's when you can bank on us. Bank of Baroda's Personal Loan offers financial help to meet your personal requirements.

Key Benefits

Helps you take care of all kinds of expenses at a short notice.

The loan covers medical expenses, marriage expenses, travel expenses, honeymoon holiday expenses and any other personal use.

BARODA PERSONAL COMPUTER LOAN

The number of businesses and homes depending on computers for a more efficient and systematic, day to day management of activities is on the rise. Whether it helps your kid's education or augments your business activities, or provides as a source of information and entertainment at home, computers have proved to be indispensable.

Although computers are getting cheaper by the year, they still come with a considerably high price tag. Bank of Baroda's Personal Computer Loans enable you to finance your dream PC and also provide for the purchase of legal software.

Key Benefits

Provides adequate finance to purchase a branded PC of your choice.

Dual finance provision for PC (up to Rs. 1 Lakh) as well as software (up to 20,000/-).

BARODA DESH VIDESH YATRA LOAN

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Bank of Baroda introduces Baroda Desh Videsh Yatra Loan, a unique loan product specially designed to cater to the needs of individuals to meet tour and travel expenses for visiting any place in India and abroad.

Key Benefits

Travel now and pay later. Repayment in maximum 36 EMIs

Simple procedures / formalities. Loan can be availed Upto Rs. 10.00 Lacs. Available for undertaking pleasure trips within the country as well as

for overseas. Caters to the needs of individuals (salaried, self employed,

professionals and individuals engaged in business/industry) No margin money up to Rs. 50, 000.

BARODA EDUCATION LOAN

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: -

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

ii) Bank Finance to employees to buy shares of their own companies: -

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

a. Initial Public Offering (IPO): 50% margin

b. Employees Stock Option Plan (ESOP): 10% margin.

BARODA VAIBHAV LAKSHMI LOAN

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

Key Benefits

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

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

Key Benefits

Maximum amount of loan - Rs. 1,00000/- or 10 times of your last monthly pension, whichever is lower

Personal accidental death Insurance cover of up to Rs. 75000/- This loan facility is available at all the branches of the bank, enabling

you the convenience of the Bank of Baroda branch near you.

BARODA MARRIAGE LOAN

The marriage of your daughter or loving sister is usually one that you want to celebrate with pride and joy. When it is the most important day of her life, and yours, you want to give her the best memories of the day to cherish. You want to make sure that all arrangements are made well in advance and every comfort meticulously provided for.

The Marriage Loan from Bank of Baroda is the ideal way to provide for such occasions. Working women can also avail of this loan to meet expenses related to their marriage.

Key Benefits

The Baroda Marriage Loan gives you the freedom of a personal loan, as high as Rs. 2 Lakhs.

Ease of repayment in 60- months, in Monthly/Quarterly/Half-yearly installments or under the EMI (Equated Monthly Installments) option.

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HOUSING LOANS TO NRIS / PIOS

Bank of Baroda presents yet another innovative product offering in the form of Baroda Housing Loans to NRIs / PIOs, a unique housing loan facility designed specially for Non Resident Indians (NRI) and Person of Indian Origin (PIO).

The Home Loans offering from Bank of Baroda essentially provides NRIs and PIOs for finance in relation to the purchase of a new house, construction of a new dwelling unit, financing of an old dwelling unit, for repair / renovation / extension of your existing house, purchase of a plot and repayment of loans from other housing finance companies.

Key Benefits

A loan product tailor-made for NRI / PIO needs

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

Free property insurance and personal accident insurance No pre payment / foreclosure charges for part as well as full

prepayment (when repaid from own sources by the borrower)

BARODA HOME IMPROVEMENT LOAN

Bank of Baroda brings to you a unique loan product. A loan for Repairs / Renovations / Improvement / Extension of Home and for Furniture, Fittings & Fixtures.

Key Benefits

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Loan available for repairs / renovation / improvement / extension of the existing house.

Loan available for purchase of furniture / fixtures / furnishing / other gadgets such as fans, geysers, air conditioners etc. required, to:

o Our existing housing loan borrowers o New borrowers

Free Credit Card: Free Credit Card (complementary for first year) will be issued to borrowers with loan limit above Rs.2/-lacs. Type of card will depend on loan limit as under

Loan limit Type of card

Above Rs.2/-lacs - Up to Rs.5/-lacs Paras International

Above Rs.5/-lacs - Up to Rs.10/-lacs Exclusive

Concessions in respect of Group borrowers:

Group borrowers and employees of approved organizations will be eligible for following concessions for loans considered for repairs necessitated on account of natural calamities such as floods, cyclones and earth quakes etc.

1. Rate of Interest - Reduction Upto 0.25%. 2. Margin - After satisfying about the reasonability of project cost,

the margin may be reduced by a maximum of 5%. 3. Cross guarantees - cross guarantees may be allowed.

FOREIGN CURRENCY LOAN (FCNR’B)

Currencies for loan:

US $, Euro €, Japanese ¥ and Sterling £

Who is Eligible:

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This facility would be available to all our existing Corporate / non corporate clients

Purpose:

1. Working Capital. 2. Loan for capital expenditure such as purchase of new plant and

machinery, acquisition of equipments and other assets. 3.

Tenor:

The facility can be allowed for a period from 3 months to 36 months subject to periodical rollover.

Rate of Interest:

Interest rate would be linked to LIBOR of relevant currency + spread depending on credit rating, payable at monthly rests.

Commitment Fee:

1% p.a. of unutilized amount of FCL if it is not availed within 30 days of sanction.

Prepayment charges:

1% on the loan amount for the remaining period

Processing Charges:

1. Working Capital- Rs. 20,000/- 2. Term Loans- as applicable for rupee TL

FINANCE PROVIDED BY BANK OF BARODA IS AS FOLLOWS:

AGRICULTURAL FINANCE SCHEMES:

Agriculture being the backbone of the Indian Economy, Bank of Baroda, is contributing significantly in accelerating the pace of rural

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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 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.

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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 (PRE-SHIPMENT & POST-SHIPMENT):

BoB offers both pre and post shipment credit to the Indian exporters through Rupee Denominated Loans as well as foreign currency loans in India.

Exporters having firm export orders or confirmed L/C from a recognized Bank can avail the export credit facilities from BOB provided they satisfy the required credit norms. The details of the credit norms can be obtained from the nearest authorized branch of the Bank.

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Rupee export credit is available for a maximum period of -180- days from the date of first disbursement. The corporates, if required can book forward contracts in respect of future export credit drawals.

2. EXPORT BILL REDISCOUNTING:

BOB offers financing of export by way of bill discounting of export bills to provide post shipment finance to the exporters at competitive international rate of interest. This facility is available in -4- currencies i.e. US$, Pound Sterling, Euro and JPY.

The export bills (both Sight and Usance) can be purchased/ discounted provided they comply with the norms of the Bank/ RBI.

All exporters are eligible to cover the bills drawn under L/C, non-credit bills under sanctioned limits under the Bill discounting Scheme.

3. IMPORT FINANCE

Bank of Baroda provides various types of funding/ services to the importers for facilitating the imports in the country. All the facilities are 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:

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Bank of Baroda offers L/C facility for the purchase of goods in the international market. Being a well-known international Bank of repute, the L/Cs of the Bank of Baroda are well accepted in the International market.

With the Letter of Credit of Bank of Baroda, importers can build up better trust/ confidence in their suppliers and develop other business relationship at a much faster pace.

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

The L/C facility can be granted to the importers after assessing their requirement/ credit worthiness/ financial strength and other parameters being to the satisfaction of the Bank.

4. BANK GUARANTEES:

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

TREASURY OPERATIONS

In the changing economic environment of the country in particular and the globe in general, Bank of Baroda was the premier public sector bank in India to set up a Specialized Integrated Treasury Branch (SITB) in Mumbai and the integrated approach initiated by the Bank in its treasury operations is now being emulated by other peer banks.

Bank of Baroda has consciously adopted a focused approach towards improving efficiency and profitability by successfully integrating the operations of different financial markets, viz. Domestic Money, Investments, Foreign Exchange and Derivatives and has made its mark as an important player in the market-place.

The SITB at Mumbai, equipped with the State-of-the-art technology, with modern communication facilities, handles all types of financial transactions, both for managing its resources and deployments and effective compliance of regulatory requirements.

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DOMESTIC OPERATIONS

Bank of Baroda has set up dedicated desks at the SITB, headed by experienced professionals, for undertaking various types of treasury activities in different financial markets. Apart from activities pertaining to management of funds and liquidity, the domestic treasury also handles financial instruments like:

Commercial Papers (CP) Certificate of Deposits (CD) Government Securities Treasury Bills (TB) Bonds and Debentures Equities and various other derivatives.

The products and services offered by SITB cater to the inter-bank market as well as to the Corporate customers of the bank. The Bank is an active participant both in the inter-bank market and the corporate for all the products.

Bank's under mentioned branches are authorized for this purpose and prospective investors may contact for our services:-

City Branch Name Telephone No.Ahmedabad Navrangpura 7541494, 7540095, 7545504Chennai North Beach Road 25232320, 25232233, 25213811Kolkata India Exchange 22214468, 22206076, 22206077Mumbai Fort University 22672372, 22670620, 22670614Mumbai P M Road 22642074, 22662343, 22663348New Delhi Parliament Street 23321849, 23325557, 23328666

As an OTC product, the bank also arranges for hedging interest rate risks or currency risks by offering Interest Rate Swaps (IRS), Forward Rate Agreements (FRA) or Currency Swaps, with reference to acceptable benchmark rates. Bank of Baroda also offers derivative products like Options and Swaptions for obtaining protection against adverse movements

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in exchange and/or interest rates, while retaining the advantage of higher profit from favourable movements.

FOREX OPERATIONS

Bank of Baroda, one of the major public sector banks in India having a strong global presence with a wide network of 61 overseas offices, including those of subsidiaries, spread over 16 countries, is considered as a market leader in foreign exchange operations in India. At present the Bank is having branches / offices in countries like USA, UK, Belgium, South Africa, Hong Kong, UAE, Oman, Fiji Islands, Mauritius, Seychelles, Bahamas, Guyana, Kenya, Uganda and Zambia

The Bank has completed fifty years of operations in overseas territories and is poised to expand its reach to countries like Tanzania and China, apart from consolidating its overseas operations in those countries where the bank has already made its presence felt.

The modern state-of-the-art dealing room at its Specialized Integrated Treasury Branch (SITB) at Mumbai provides the necessary wherewithal to its 95 designated branches across the length and breadth of the country authorized to handle foreign exchange business of its clientele.

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

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treasury operations on behalf of the customers. All the Forex treasuries at the overseas money center branches are equipped with state of art technology, highly experienced and motivated staff with professional skills. These branches deal in all the major international currencies i.e. US$, GBP, Euro, Yen as well as other currencies. These branches undertake the following treasury related activities:

Forex Inter Bank Placements/ Borrowings

Sale & Purchase of currency on behalf of customers Forward Cover Bookings Cross Currency Swaps Interest Rate Swaps (IRS) Forward Rate Arrangements (FRA's) Forex Money Market Operations.

INTERNATIONAL TRADE

EXTERNAL COMMERCIAL BORROWINGS

The foreign currency borrowings raised by the Indian corporates from confirmed banking sources outside India are called "External Commercial Borrowings" (ECBs). These Foreign Currency borrowings can be raised within ECB Policy guidelines of Govt. of India/ Reserve Bank of India applicable from time to time. ECBs includes the following:

1. Commercial Loans

2. Syndicated Loans3. Floating/ Fixed rate Notes and Bonds4. Import loans, loans from the export credit agencies of other countries.5. Foreign Currency Convertible Bonds (FCCBs) before conversion6. Commercial loans from multilateral agencies such as IFC, ADB, CDC

etc.

The ECBs route is beneficial to the Indian corporates on account of following:

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1. It provides the foreign currency funds, which may not be available in India.

2. The cost of funds at times works out to be cheaper as compared to the cost of rupee funds.

3. The availability of the funds form the International market is huge as compared to domestic market and corporates can raise large amount of funds at competitive prices depending on the risk perception of the International market.

FOREIGN CURRENCY CREDITS

The Foreign currency denominated credit facilities are granted to the Indian corporations in India as well as at the Money Centre Branches abroad.

Corporations interested in raising foreign currency funds both in India and abroad may contact in India the branches they are dealing with, the Position Maintaining Offices (PMO's/ Authorized Foreign Exchange Branches), Corporate Banking Branches, Industrial Finance branches or any of the major branch in the city. They may also contact the Bank's Regional Offices/ Zonal Offices for the required information/ guidelines. They may contact the International Division, Central Office at Mumbai on the following address:

Corporate OfficeBank of Baroda, Baroda Corporate Centre,International Division,Plot No C - 26, G - Block, Bandra East, Mumbai 400 051.

Foreign Currency Credit outside India

With a presence at major financial centers of the world, Bank of Baroda has strong foreign currency resources at Money Centre Branches. This enables Bank of Baroda to arrange for and grant Foreign Currency Credits to Indian as well as multinational corporations at competitive rates.

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The foreign currency denominated Loans are granted at Money Centre Branches across the globe. The Foreign Currency Loans granted to Indian Corporate are granted as per External Commercial Borrowing (ECB) Policy of Govt. of India.

I.T. INFRASTRUCTURE & IT-ENABLED SERVICES AT BANK OF BARODA

Bank’s IT-enabled Business Transformation Programme; Roll out of Core Banking Solution (CBS):

The Bank’s technology initiatives are clearly focused on the customer. The Business Transformation Programme, encompassing technology, is being implemented by the Bank with a view to providing the customer, convenience banking on 24X7 basis, at major centres in India and abroad, through deployment of Core Banking Solution with integrated delivery channels like ATM, Internet, Phone, Mobile, Kiosk, Call Centre.

For implementation of Core Banking Solution, which will be a single solution across all the countries where the Bank is operating, the Bank has tied up with a world-class System Integrator – Hewlett Packard (HP). This solution is a comprehensive solution incorporating various applications like Enterprise wide General Ledger, Risk Management, Anti-Money Laundering, Cheque Truncation, Credit Cards, Mutual Funds, On-line Trading, Data Warehousing, Customer Relationship Management, RTGS, NEFT, Global Treasury, Securitization, Human Resources Management System, Employee Pay Roll.

By March 2006, CBS will be rolled out in 125 branches across 10 major centres in India and U.A.E. and Oman. This will be taken forward to cover 600 branches – including most of the International

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Branches – by March 2007. Per current plans, the coverage will be further extended to 1900+ branches by 2008-09.

Bank’s State-of-the-Art Data Centre:

Bank has built and commissioned its own State-of-the-Art Global Data Centre (DC) in Mumbai for running its centralized banking solution and other applications in 1900+ branches across India and 20 other counties where the Bank is operating. The Data Centre will function as a central data hub of the Bank for both its domestic and international operations.

The Data Centre has been designed and implemented by Hewlett Packard (HP), its technology partner. It conforms to critical technology standards and is equipped with full Communication and Network Infrastructure, meeting all the attributes of a Tier III Data Centre and having certification capability for BS 7799.

Wide Area Network (WAN) - Networking of Branches under CBS:

1100+ branches in India have been networked through Lease Lines, ISDN, and VSATs for running multiple applications under CBS.

Branch Computerization:

Bank has computerized operations at 2697 branches in India, out of which 516 branches have been brought under computerization through cluster approach.

ATM Network:

The Bank’s interconnected ATM network in India now stands at 535 across 203 centres.

The Bank’s plans are to extend this network in stages in future. The Bank also plans to deploy low cost ATMs at Rural centers.

Tele-Banking, PC-Banking, Any Branch Banking:

Centralized Telebanking, PC Banking and Any Branch Banking are available at 294 branches across 7 centres.

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Information based Internet & Mobile Banking (SMS) services:

These services are offered to customers at over 585 branches across 139 centres. SMS and WAP-based Mobile Banking Services are also provided to the customers of these branches, using mobile phone. Customers can get a single view of their accounts across various branches; can obtain account view for 2 months as also send request for chequebook.

BOB Money Express – Bank’s exclusive e-Payment Product:

This product is available at 340 branches across 53 centres.

Real Time Gross Settlement System (RTGS):

RTGS is operational at the Bank’s Treasury Branch, Mumbai.

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

Utility Bills Payment (Bill Pay):

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

RBI’s Special EFT:

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

MICR Processing Centres:

Bank of Baroda runs 3 MICR centres - at Ahmedabad, Rajkot and Combater.

Indian Subsidiaries:

Operations at the Bank’s Indian Subsidiaries - BOBCARDS Ltd., BOB Capital Markets Ltd. (Primary Dealership), BOB Housing

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Finance Ltd., and BOB ASSET MANAGEMENT COMPANY LTD - are 100% computerized.

International Operations:

Operations at all Bank’s overseas branches are 100% computerized. Operations at all Offshore Business Units, Joint Ventures & Subsidiaries are also 100% computerized.

Core banking at territory level is implemented in 8 overseas territories.

ANALYSIS OF THE SURVEY

Analysis for the better understanding of the BOB bank account holders was carried out. The purpose of analyzing was to know customer satisfaction, awareness of the products offered by the bank and that, their view about some facilities they would like to have and improvements suggested for better working of the bank and higher satisfaction.

Questionnaire method was used to carry out the survey. The survey was carried out in the different part of city of Mumbai. Different types of account holders like current account holder, saving account and fixed account holders were interviewed. Some very interesting facts came up which will be dealt in detail later. A set of 14 questions was used in the questionnaire, which varied from objective types to descriptive types of questions. Questionnaire was framed and design in such a manner that it could be filled up within 5 minutes by the person thus saving time of interviewee.

The sample size of the survey was taken to be 50. Of this 50 people 20 questioned were to businessperson, 15 people were servicemen and professional, 10 students and 5 housewives or other categories. Questions ranged from getting information about loan, different account, cards, use of bank overdraft etc.

Besides the questionnaire, method information was also gathered by means of secondary data from sources such as:

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1. Branches of Bank of Baroda.2. BOB websites.

FINDINGS OF THE SURVEY

The first question asked was whether the bank account was satisfied with the services of the Bank of Baroda.

The results were astonishing. They are as under:

Each person interrogated had no questions or hesitation in rating services offered by bank of Baroda as satisfactory. Reason explained why the customer were given quick response at the Bank of Baroda is the unique services, facility offered by bank. Some of the facilities offered by the bank, which lead to such high satisfaction, are as follows:

1. The reason for high satisfaction rate as mentioned by sample was that on the standing instructions of the customers bank could pay bills such as telephone bills, light bills etc. with the required minimum or low cost.

2. Sample also said that for the purpose of bank formalities bank send their own representative, it saves the time of the customers.

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3. The account holders were very well informed about the new facilities started by the bank by sending letters.

4. Bank also provides E-Banking services.

The second question asked was whether they had ever taken a bank loan?

The results were received are:

LOAN TAKEN BY BUSINESSMEN

Classically bank loans were meant for the businessman. Bank of Baroda has given loans to almost 60% of its customer.

It is pleasing from the point of view of the bank that almost 60% of the businessmen having account with the BOB have taken a bank loan. Most of the bank loans taken by the businessman were for the purpose of raw materials or the purchase of machinery or for the purchase of assets for the company. Some of them had even taken loan for starting up the business and said that the bank was very helpful for arranging for the loans.

LOANS TAKEN BY STUDENT

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The reason for only 10% of students taking bank loans is that students do not need to take loans. Their caretakers meet most of the expenses and it is seen that in India loan taken by the students have only for the purpose of consumer durable such as computer, music system etc

OVERALL LOAN TAKEN BY BOB CUSTOMERS

LOANS TAKEN BY BOB CUSTOMERS

As we have seen earlier that 60% of businessman have taken loan, and 20% of student have taken loan from the Bank. Overall, almost 48% of the BOB customers have taken loan from the Bank. This is a big number; almost every second customer has taken loan from the Bank.

This is very impressive rate of loan given by the Bank. It is assumed that loan sanctioned in the rate of 45% to 55% is a good as it should be. As stated above the loans given by the Bank are mainly because of attractive

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loan schemes offered by the Bank. Because of this attractive loan scheme facility it has been able to attract more loans than other Banks.

Another reason for such high BOB success of loan scheme is very few formalities to carry out during the loan. The processing time taken by Bank is much lower than the other Banks. The sample interviewed told that the time taken for granting of loan scheme is almost half than taken by other Banks. One more reason is extensive advertising taken up by Bank of Baroda, resulting in increasing in bank of Baroda’s brand name.

Another question asked was that how they would like to payback the loan taken from the Bank?

The overall result is as follows:

MONTHLY INSTALLMENT – 44%QUATERLY INSTALLMENT - 34%YEARLY INSTALLMENT – 22%

HOW THEY LIKE TO PAYBACK

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From the graph we can see that customers mostly like to pay back the loans as monthly installment. As we see that 50% of businessman like to pay loan as monthly base. Like them others customer also likes to pay back the loan as monthly base, students are 40% & others are 60%.

The main reason for such high payback of monthly installment schemes in all customers is because they can instruct the Bank to debit their account at every month so that they don’t feel the pressure of loans and interest. The same is the reason with businessman especially those whom take big loans which amount to high interest. So monthly repayments can decrease the loan and interest liabilities easily.

Another question asked was which of the BOB card customer’s customer like to use?

The results are as follows:

As we can see from the graph that almost 50% of accountholders have a credit cards. Credit card often termed, as credit money is one of the products which today every bank is providing to its customer. We can see that businessman have the highest number of credit cards i.e. around 60%. This is because they are most likely to be using more than any other category. Credit cards are very important as during traveling customers don’t need to keep too much of cash with them and can just use the credit card as cash. Credit cards now have a Universal application.

When inquired about Internet Banking used by customer or not, results were not in favor of Bank.

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Customers are not at all interested in using the internet banking service, because they don’t have that much of knowledge about the process that how to operate internet, how to access in it, as well as all customers don’t have their on computers so through which they can operate. Also customers are thinking that the internet banking service is not safe. QUESTIONNAIRE:

NAME: -

OCCUPATION:

PROFESSIONAL SERVICE STUDENT OTHERS (SPECIFY)

1. WHAT TYPE OF ACCOUNT DO YOU HAVE WITH BANK OF BARODA?

CURRENT ACCOUNT SAVING DEPOSIT ACCOUNT FIXED ACCOUNT FLEXIBLE RECCURING DEPOSIT ACCOUNT OTHER (PLEASE SPECIFY)

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2. ARE YOU SATISFIED WITH THE SERVICE PROVIDED BY THE BANK OF BARODA?

YES NO

3. WHICH OF THE FOLLOWING DEPOSITS YOU ARE AWARE OF?

FIXE DEPOSIT CURRENT DEPOSIT SAVING DEPOSIT RECURRING DEPOSIT MONTHLY INCOME PLAN NAGRIK BACHAT KHATA OTHERS (PLEASE SPECIFY)

4. HAVE YOU EVER TAKEN A BANK LOAN?

YES NO

5. WHICH OF THE FOLLOWING LOAN SCHEME YOU WERE AWARE OF?

HOUSING LOAN PERSONAL LOAN CONSUMER DURABLE LOAN LOAN AGAINST SHARES COMMERCIAL VEHICLE LOAN BARODA DESH VIDESH YATRA LOAN

6. WHAT KIND OF LOAN WOULD YOU LIKE TO TAKE OTHER THAN THOSE MENTIONED ABOVE? WHY?

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7. HOW WOULD YOU PREFER TO PAYBACK THE LOAN?

MONTHLY INSTALLMENT QUATERLY INSTALLMENT YEARLY INSTALLMENT

8. DO YOU USE INTERNET BANKING FACILITY PROVIDE BY BANK OF BARODA?

YES NO

9. CAN YOU LIST SOME OF THE SERVICES WHICH YOU KNOW BANK OF BARODA OFFERING?

10. DO YOU OWN ANY BOB CARD?

BOB EXCLUSIVE WOMEN CARD BOB EXCLUSIVE YOUTH CARD BOB PARAS CARD BOB GOLD CARD BOB SILVER CARD INTERNATIONAL DEBIT CARD OTHER (PLEASE SPECIFY)

11. DO YOU HAVE ANY INVESTMENT SCHEME WITH BANK OF

BARODA?

YES NO

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12. DO YOU KNOW THE RATE OF INTEREST OFFERED BY BANK OF BARODA?

YES NO

13. IF YES, PLEASE SPECIFY: -

14. HAVE YOU EVER USED PERSONAL BANK OVERDRAFT?

YES NO

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

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banking services but they want to be as their business partners and help accordingly. New concept such as universal credit cards, debit cum ATM cards need to be promoted along with the concept of ‘plastic money’ because most of the privatized bank are increasingly becoming ‘fee earning oriented’. Therefore, the bank has give more and more services to the people in order to have increased returns from fee-based function.

Professionalism is getting the key word in banking sector. People now expect the privatized banks to become more and more professional rather that of earlier years where the staff has no sympathy or understanding for the time and value of the customer. People today demand more working hours, more services to be provided at no extra cost or minimum cost. This has led to more professional attitude by the banking people.

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.

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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.

EXECUTIVE SUMMARY

Theme of the project

The project speaks about the different types of services offered by the Bank of Baroda. The project tries to highlight the awareness of the customers in respect to various products and services offered by the Bank of Baroda. It also tries to find out satisfaction rate amongst its customer.

Banking scenario

Banking system has improved tremendously over the years. With the invasion of foreign bank on Indian soil the outlook pf banking sector in India has changed dramatically. Due to the professionalism showed by the private banks in India it has been

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able to give other foreign bank run for its money. Today the banks are becoming more technology oriented rather than work force oriented. New concepts are coming in day in day out. Bank today are providing services to the best of their ability and in this way had benefited the common man.

Survey

For knowing the satisfaction amongst its client and awareness of BOB products and services know and used by the customers of the Bank of Baroda a survey was carried out in the city of Mumbai. The sample size selected for the survey was kept at 50. The account holder which included individual having current account, saving account, and student having saving account. Questionnaire method was used for primary data collection procedure. Secondary data collected from other sources.

Recommendation

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

Conclusion

To conclude banking sector is the backbone of any economy. Services offered by them go a long way in upliftment of the society. In this world of high competition where banking too faces very high competition, if has to survive has to serve its customer to the best of their ability.

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BIBLIOGRAPHY

BOOK

BANKING THEORY AND PRACTICES - K.C SHEKHAR

MAGAZINE

BUSINESS INDIA

BUSINESS TODAY

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WEBSITE

WWW.GOOGLE.COM

WWW.BANKOFBARODA.COM

NEWSPAPERDNA

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