Pro- New Edited CHAPTER 1

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CHAPTER 1

INTRODUCTION

1.1INTRODUCTION TO THE CONCEPT OF THE STUDYBanks play a predominant role in building the economy of an individual as well as nation.The importance for service sectors has been growing world wide. In line with the global

trend, in the Indian context also, the service sectors have been gaining prominence since the

introduction of New Economic Reforms in 1991. Of the various service sector activities, the

banking services in India has greater importance as it forms the lifeline of economic activity

of both rural and urban areas. However, the liberalization process has evoked skepticism on

the performance of the banks on the part of the planners, policy makers and small savers, due

to the increased competition faced by these institutions from the public and private domestic

banks and the foreign bank.

Banking services offered to the general public. Retail lending services are a group offinancial services that includes installment loans, residential mortgages, equity credit loans,

deposit services, and individual retirement accounts. Retail lending includes loans for

automobile purchases, home purchases, medical care, home repair, vacations, and other

consumer uses. In contrast with Wholesale Banking or corporate banking, retail banking is a

high volume business with many service providers competing for market share. Some retail

banking services, for example, credit cards, are among the most profitable services offered by

financial institutions.

Retail lending has taken a prominent role in the lending activities of banks, as the availability

of credit and the number of products offered for retail lending have grown. Retail lending

may take the form of installment loans, which must be paid off little by little over the course

of years, or non-installment loans, which are paid off in one lump sum.

1.2THEORITICAL BACKGROUND OF THE STUDYRetail lending in India is a new phenomenon. It has always been prevalent in India in various

forms. For the last few years it has become synonymous with mainstream banking for many

banks.

The typical products offered in the Indian retail banking segment are housing loans,

consumption loans for purchase of durables, auto loans, credit cards and educational loans.

The loans are marketed under attractive brand names to differentiate the products offered by

different banks. As the Report on Trend and Progress of India, 2009-010has shown that the

loan values of these retail typically range between Rs.50, 000 to Rs.150000 lakh. The loans


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are generally for duration of five to seven years with housing loans granted for a longer

duration of 15 years.

In recent past retail lending has turned out to be a key profit driver for banks with retail

portfolio constituting 21.5 per cent of total outstanding advances as on March 2004. `Retail

Lending, Banks retail advances increased by 39 per cent at March 31, 2010, which

constituted 65 per cent of advances. loan.

Retail lending ,a departure from conventional advance ,offer high yield ,quicker return ,the

possibility of less incidence of the account going bad or non performing if it is monitored on

an ongoing basis.Monitoring of the account is easier in retail lending segment when

compared to the conventional advances ,for the reason the instalment and reapayment

schedule have to be monitored in respect of retail lending.

The novel retail lending products are introduced by the banks to compete effictiveley in the

market ,the products which are prevalent in the bank of baroda are the following.

y Housing Loansy Vehicle Loans (two wheelers and four wheelers)y Personal loansy Mortgage loansy Pension loans

MARGIN

The contribution brought in by the borrowers is termed as margin.Margin requirements frombank to bank.

INTEREST

The rate of intrest has been deregulated by the apex monetary authority which suggest the

rate of intrest offered by one bank for a retail lending scheme may not match with the one

offered by the other bank .The rate of intrest is decided by the individual bank.

In the backdrop of increased focus on retail strategy and volatility of the financial

markets, the Indian banks need to be more cautious while making disbursements in the retail

sector. They would do well to closely monitor their personal loan portfolios.


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1.3 REVIEW OF LITERATURE

Mohamad Iruwab bin Ghuslan1, Junaina Muhammad and Sazali Zainal Abidin(2010)1 conducted a study onFactors Affecting Commercial Bank Lending Practices in theMalaysian Farm Sector and examined the lending practices of Malaysian commercial banksin the agricultural sector and analysed the relationship between bank lending practices such

as credit analysis, collateral policy and pricing policy to the agricultural sector and the resultswere commercial banks play a very important role as financial intermediaries, because theycan be more involved by injecting more funds that will benefit farmers and agro-basedentrepreneurs and the government should play its role to ensure that agricultural financingcontinues to progress.

Aldo Letizia 2(2010) conducted a study on The overhaul of the existing lending rate

practice is the need of the hour and the system would adjust to the new regime over a period

of time. Economic prosperity is linked to the level of interest rates and availability of

resources for productive uses. Till the late 1980s, we have seen highly administered interest

regime in India, on both the liability and asset side. With the introduction of financial sector

reforms in the early 1990s, most of the interest rates on the lending side were freed. With a

view to encourage competitive loan pricing, RBI freed lending rates of scheduled commercial

banks for credit limits of over Rs 2 lakh along with the introduction of the Prime Lending

Rate (PLR) system in 1994. Subsequently, we moved into a regime of Benchmark Prime

Lending Rate (BPLR) in 2003 and it was expected to reflect the actual cost of the banks. But

as competition intensified, many of the loan products were getting priced below base rate and

the concept of BPLR as a transparent benchmark reference rate lost its relevance. Cross-

subsidization was considered as the main cause for this type of situation. It was observed that

corporates were getting loans at very cheap rate at the cost of, probably, all other segments of

the society who do not have the necessary bargaining power.

1Mohamad Iruwab bin Ghuslan, Junaina Muhammad and Sazali Zainal Abidin.2010, Factors Affecting Commercial Bank Lending Practices in the Malaysian FarmSector,The IUP Journal of Public Finance, Vol. VIII, No.4, PP 39-49.

2 Aldo Letizia. 2010, The overhaul of the existing lending rate practice,The IUP Journalof Financial Risk Management, Vol VII, No. 3, PP 7-24.


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Satendramani Tiwari3(2010) conducted a study on lending policy for the fiscal 2009-10,

RBI, has yet gain reduced its key policy rates and interest rates, so as to boost the faltering

growth momentum of the country in the present financial crisis. This Credit Policy isnoteworthy not only for signalling reduction in interest rates but also for the directions given

to banks to transmit these signals to actual lending. rates. RBI's Credit Policy measures will,

if properly implemented, enable the economy to resume its growth.

Vasso Ioannidou and Steven Ongena4(2010) conducted a study on Time for a Change: Loan

Conditions and Bank Behavior when Firms Switch Banks and studied the loan conditionswhen firms switch banks and found that turning to a new bank leads to a substantial drop inthe loan rate.

3Satendramani Tiwari. 2010, Lending policy,The IUP Journal of Financial Risk

Management, Vol.VII, No.3, PP 25-45.

4Vasso Ioannidou and Steven Ongena. 2010, Time for a Change: Loan Conditions and

Bank Behavior when Firms Switch Banks,The Journal of Finance, Vol LXV, No. 5, PP1847-1875.


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Thorsten Beck, Ross Levine and Alexey Levkov5

(2010) conducted a studuy on the Bank

Rate,It is generally considered as the primary instrument of monetary control. However, with

the market-driven interest rate policy and advent of liquidity adjustment measures, its

efficacy has been questioned. In this article, an attempt has been made to articulate the

relevance of Bank Rate vis--vis other instruments of monetary influence and Interest rate

control is a prominent feature of government intervention in financial markets. The structureof interest rate was influenced by the requirements of financing budget deficits and making

bank credit available to favor activities at concessional rates. Prior to reforms, interest rate

was not performing any significant allocative function on the asset side of banks balance

sheets and credit was mostly allocative by non-price means.

Astrid A.Dick and Andreas Lehnert6(2010)conducted a study on The current economic

environment in lending rates which is sluggish in industrial production and new projects has

resulted in poor credit absorption both for long-term funding to big-ticket projects as well as

working capital. The slowdown in the economy as well as lending to corporates at

unjustifiable rates taking into account the banks' cost of funding, operating cost and riskpremium has resulted in limited lending opportunities to banks. Major portion of the loans

raised by corporates were to replace the existing high cost funding and is more in the nature

of arbitraging on the interest rates with various banks. The loan products to corporates with

strong financials now are almost linked to prices of government securities/or mark-up over

government paper.

Abhijt Lele 7(2011) conducted a study on a highly useful and comprehensive survey of theseveral loan pricing approaches has been discussed. Particular attention has been paid to themost significant and popularly practiced techniques of pricing the prime lending rate. In the

process, highly useful illustrative examples have been discussed on how to scientificallycompute the marginal cost of funds. Specifically, the present value approach to loan pricing isdiscussed as a novel and all inclusive model. This method explains as to how to incorporatethe benefits of any deposit balances the borrower leaves with the lending bank. Finally, a

brief discussion on the various forms of financial intermediation has been presented. This isdone with a view to relating the costs of borrowing funds under several forms of financialintermediation.

5Thorsten Beck, Ross Levine and Alexey Levkov. 2010, Bank Rate The Journal ofFinance, Vol LXV, No.5, PP 1637-1665.

6Astrid A.Dick and Andreas Lehnert. 2010, The current economic environment in lendingrates, The Journal of Finance, Vol LXV, No.2, PP 655-684.

7Abhijt Lele. 2011, A highly useful and comprehensive survey of the several loanpricing, The Journal of Banking Annual,Vol 2, PP 49-51.


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Ole .E.Andreassan8(2011)conducted a study on How Banks MakeLending Decisions,banks

do not allocate resources from savings efficiently; they do not allow higher risk levels than

individual investors; they do not focus on future firm performance; they monitor closely

rather than rely on standardized contracts; and they use collateral to remedy agency problems,

not to reduce risk. It is on the secured transactions to see if shortcomings in the legal

framework can explain observed lending patterns.

8Ole .E.Andreassan 2011How Banks Make Lending Decisions, The Journal of Bankingplans, Vol 2, PP 750-755.


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1.4STATEMENT OF THE PROBLEMThe special features of retail lending is to attract the customers about their retail products and

the implementation of the service offered.Retail lending system studies the gaps in the service

offered to various customers.The problem in retail lending is where bank to bank provide

different schemes and different norms for the eligibility of the applicant in providing

loans.For small borrowers it is difficult to get It returns.The approval ,documents from state

government is also difficult. The present study focuses on the lending rates products and

services offered in bank.

1.5 OBJECTIVES OF THE STUDY

y To study the lending rates on products and services provided by bank of baroda.y To study the opinion of the customers regarding the lending rate.y To know the different in the rate of intrest and other fees charged by Bank

ofBaroda .

1.6 SCOPE OF THE STUDY

The study is conducted to analyse the retail lending schemes in bank ofbaroda.The study is collected through primary data from customers through questionnaire andsecondary data in the form of reports,websites,madazines.

1.7 RESEARCH METHODLOGY

y Type of the study-Descriptive studyy Smapling Method-Convenience Sampling methody Sample Size-150Customersy Tools for data -Questionnairey Tools for anal -Chi square

1.8LIMITATIONS

y Few respondents where not intrested in filling up the questionnaire.y The results will be applied only to bank of baroda not to other banks .y Lending rates may change in future.


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1.9CHAPTER SCHEME

CHAPTER 1

The first chapter gives an introduction of the concept of the study,the theoretical backgroundof the study ,review of literature,statement of the problem,objective of the study,scope of the

study,research methodology adopted and the limitation of the study.

CHAPTER 2

The second chapter deals with the history of organisation,the management,organisation

structure,product profile and market potential,competitive strength of the company,future

plans and description about the various funactional areas.

CHAPTER 3

The third chapter is macr-micro analysis which gives an insight about the reatail lendings

globally and the indian scenario.

CHAPTER 4

The fourth chapter deals with the analysis of the data collected for the study and the

interpretation of the results obtained.

CHAPTER 5

The fifth chapter deals with the discussion on the findings and the suggested recommendation

based on the findings.


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CHAPTER 2

ORGANIZATION PROFILE

2.1 HISTORY OF THE ORGANISATION

The Bank of Baroda was started on 20th July 1908 under the Companies Act of 1887. Theinitial capital invested was ` 10 Lakhs. The Maharaja was none other than Sayajirao Gaekwadwho, with his visionary insight, planned the beginning of a reputed journey which overthe years, came to be known as the Bank of Baroda.

During the period of 1913 to 1917; almost 87 banks in India succumbed to a financialcrisis. However, the Bank of Baroda survived the economic depression by dint of its financialintegrity, business prudence and concern uncompromising concern about its customers andclients. This has transcended down to the present ages and has become the motto of the bank.

History

1908-1959

1908: Maharaja Sayajirao Gaekwad IIIset up Bank of Baroda (BOB)ps\pareek.

1910: BoB established its first branch in Ahmedabad. 1953: BoB established a branch in Mombasa and another in Kampala. 1954: BoB opened a branch in Nairobi. 1956: BoB opened a branch in Dar-es-Salaam. 1957: BoB established a branch in London. 1959: BoB acquired Hind Bank.

1960s

1961: BoB merged in New Citizen Bank of India. 1962: BoB opened a branch in Mauritius. 1963: BoB acquired Surat Banking Corporation in Surat, Gujarat. 1964: BoB acquired two banks. 1964: BoB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistan

war.

1965: BoB opened a branch in Guyana.


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1967: The Tanzanian government nationalized Bank of Barodas three branches thereand transferred their operations to the Tanzanian government-owned National

Banking Corporation.

1969: The government of India nationalized 14 top banks, including Bank of Baroda.

1970s

1972: BoB acquired The Bank of Indias operations in Uganda. 1974: BoB opened a branch each in Dubai and Abu Dhabi. 1975: BoB acquired the majority shareholding and management control of Bareilly

Corporation Bank

1976: BoB opened a branch in Oman and another in Brussels. 1978: BoB opened a branch in New York and another in the Seychelles. 1979: BoB opened a branch in Nassau, the Bahamas. 1977: BoB Opened a branch in imphal

1980s

y 1985: BoB also opened an Offshore Banking Unit (OBU) in Bahrain.y 1988: BoB acquired Traders Bank, which had a branch network in Delhi.

1990s

1990: BoB opened an branch in Mauritius.

1991: BoB took over the London branches of Union Bank of India 1992 BoB incorporated its operations in Kenya into a local subsidiary with a small

tranche of shares quoted on the Nairobi Stock Exchange.

1993: BoB opened a branch in Bahrain. 1996: BoB Bank entered the capital market in December with an Initial Public

Offering (IPO).

1997: BoB opened a branch in Durban. 1998: BoB bought out its partners in IUB International Finance in Hong Kong.

1999: BoB merged in Bareilly Corporation Bank in another rescue. At the time,Bareilly had 64 branches, including four in Delhi.

2000s

2000: BoB established Bank of Baroda (Botswana). 2001: BoB acquired Benares State Bank (BSB) at the Reserve Bank of India.


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2002: Bank of Baroda (Uganda) was listed on the Uganda SecuritiesExchange (USE).

2003: BoB opened an OBU in Mumbai. 2004: BoB also opened a representative office each in Kuala Lumpur,Malaysia,

and Guangdong, China. 2005: BoB also opened a representative office in Thailand. 2006: BoB established an Offshrore Banking Unit (OBU) in Singapore. 2007: In its centenary year, BoBs total business crossed 2.09 lakh crores, its branches

crossed 1000, and its global customer base 29 million people.

2008: BoB opened a branch in Guangzhou, China (02/08/2008) and in Kenton,Harrow United Kingdom.

2009: The Bank of Baroda registered with the Reserve Bank of New Zealand,enabling it to trade as a bank in New Zealand (2009/09/01)

2010s

2010: Malaysia awarded a commercial banking license to a locally incorporated bankto be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank.


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2.2 MANGEMENT

Management - Bank of Baroda

Mr.M D Mallya Chairman and Managing director

Mr.N S Srinath Executive Director

Mr.Dharmendra Bhandari Director

Mr.Alok Nigam Director

Mr.Masarrat Shahid Director

Mr.V B Chavan Director

Mr.R K Bakshi Executive Director

Mr.Maulin A Vaishnav Director

Mr.Ajay Mathur Director

Mr.Deepak B Phatak Director

Mr.Satya Dev Tripathi Director

Mr.Sudarshan Sen Director

2.3 ORGANISATION STRUCTURE

Figure 1.1

BANK PF BARODA-COIMBATORE BRANCH


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2.4 PRODUCT PROFILE AND MARKET POTENTIAL

2.4.1 PRODUCT PROFILE

Internet Banking & Mobile Banking

It is a Hi-Tech Convenience Banking product of Bank of Baroda. Baroda InternetBanking and Baroda Mobile Banking are two services which allow customers to access theiraccount at their convenience through the internet or mobile phone.

Baroda e-money Transfer

The Bank of Baroda e-remittance facilityat select branches expedites payments and transferof funds through electronic media.

Baroda RTGS Scheme

BoardofDirectors

Managing Director & ChiefExecutive Officer

Executive vice

president

Company Secretary Whole Time Director

InvestmentBanking

Decision

Asst. VP 2

Sr Managers2

Managers5

Asst. Managers 1

BrokingDivision Mutual Fund

Distribution

AssociateV.P. 1 Associate V.P 2 Assistant

Manager1

Sr. Managers2

Support

functions

Manager 1

Jr. Executives2


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Baroda Real Time Gross Settlement scheme (RTGS) is an online Inter - Bank funds transferfacility through RBI gateway available at select branches, which ensures high degree of

security, confidentiality and operational reliability.

Other products

DEPOSITS

- Opening of deposit accounts - Call and time deposits in EURO, USD and GBP.

- Offer attractive rate of interest on time deposits

- Automatics rollover facility - No necessity for renewal instructions.

- Simple account opening formalities.

- Time deposits on monthly, quarterly, halfyear and yearly schemes.

- Facilities for executing standing instructions for monthly payments

- No account maintenance charges.

MONEY TRANSFER

It is Easy, fast and effcient money transfer facilities.

Housing Loan

For construction / purchase / repairs / additions / renovations of residential house / flat

including the purchase of land and construction thereon.

Swarna Loan

Loan against gold jewellery / ornaments.

Education Loan

Loan for education provided to the students

SERVICES

- Issue of guarantiees behalf of constituents.

- Opening of letter of credit.


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- Correspondent banking.

- Collection of cheque, bills.

2.4.2 MARKET POTENTIAL

The Bank has selected the motto Business Growth through Sales and Service Excellence.Making Bank of Baroda the Most Admired Bank is a continuous process. Bank of Barodain fact it is the third largest bank and it has over taken Bank of India in last year itself interms of business and deposit mobilisation. Thbank has grown to 31% whereas it profits havegrown almost by 38% and its growth rate just 5 years back somewhere near 10%. So in thelast 5 years bank has phenomenally grown, its results have been pretty good. The bank istechnologically driven. Its very market friendly, its quality of service is also very good andeven in terms of valuations if we look based on FY12 valuations its available at 1.25 price to

book which is fairly cheap and the growth possibility potential for this bank is pretty high.

The Banks focus has always remained on the stable and consistent growth with quality. Thefact that the Bank has been delivering on its promises year after year has won the Bankseveral recognitions both nationally and internationally.

2.5 SWOT ANALYSIS

STRENGTH

Modern & ContemporaryPersonality A well-accepted & recognized Brand in Indian banking industry Rapid & Significant Technology Progression Since FY06

WEAKNESS

y They have increased their lending rates.y They lack in technology.

OPPURTUNITY

y The bank has its business strategies around the centrality of the customer.y It diversified rapidly into the areas of merchant banking, housing finance,

credit cards and mutual funds.

y The strategy also entailed the sustained development of a string of segment -specific branches entrenching operations in profitable markets, the world

over.

THREAT

y The lack of staffs in different branch.y The entry of foreign bank in the indian markets.


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2.6FUTURE PLANS

y Bank of Baroda will soon venture into mutual funds and life insurance.y BOB is planning to add 150 more branches and 120 offsite ATMs in India.y BOB is looking to realize a business volume target of Rs 3 trillion by 20 .y BOB is planning to expand its operations in the Gulf countries during its centenary

year with the opening of a new branch in Bahrain and planned opening in Qatar.

2.7 DESCRIPTION OF VARIOUS FUNCTIONAL AREAS

2.7.1 HUMAN RESOURCE

Bank of Baroda has the tradition of continuous enrichment of its human assets so that theydeliver value to the business.

HR Objectives

y To initiate & institutionalise globally competitive HR practicesy To bring about marked changes in the mindset of employees at all levels so as to

enhance HR Quality.

y To create a performance-driven culture and an exciting workplace for the employees.y To create a pool of entrepreneurial managers and business leaders for future.y To inculcate a strong and effective sales and service culture across levels in the

organization .

y To create a learning organization for employees intellectual growth and creativity.2.7.2 MARKETING DEPARTMENT

The Bank of Baroda has segmented its market both geographically ,demographically and behavioral segmentation can also be witnessed when we havea closer look at its market. The main

segmentation is based on the income level andthe class of people. Corporate clients and thepeople relating to high class of the society are the customers of Bank of Baroda.

Customer are segmented on the following criterion

Occupation-Different products for different occupational segment identified

Income -Minimum balance serves as a income segment barrier


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Geography Concentrated on Tier 1 & Tier 2 Cities trying to extend reach

Age-Different products like student account.

CHAPTER 3

3.1 MACRO ANALYSIS AND MICRO ANALYSIS

Bank of Baroda (BOB), Indias fifth largest bank and prominent among the globaltop 200. With assets in excess of USD 32 billion, the bank has a network of over 2800

branches and offices, and about 700 ATMs. Bank of Baroda offers a wide range of bankingproducts and financial services to 29 million global corporate and retail customers, throughvarious delivery channels, its specialized subsidiaries and affiliates in the areas of investment

banking, credit cards and asset management.Bank of Baroda has international presence across 5 continents, with a network of 71offices in 25 countries, including branches of the bank, its subsidiaries and the representativeoffices. The bank also has a joint venture in Zambia with 9 branches. The bank's internationaloperations today contribute around 20% to its global business and well as over 30% to its net

profits. Growing its presence across new geographies and strengthening its equity in existingmarkets, Bank of Baroda is on the path to establish itself round the clock around the globe.

The bank is exploring out-of-the-box means to identify novel ways to tailor its growingrepertoire of products and services to meet segment-specific requirements acrossgeographies. Automation-led process and cost optimization, orchestration of the officesnetwork and greater attention to compliance with global regulations are aggressively being

focused on to help the bank achieve its ambitious goals. Bank of Baroda, gearing to leveragethe opportunities that the flat world presents and nimbly skirting its threats, is charting acoherent strategy to not just cope but break path and emerge with the winning edge, in thechanging global business scenario.

Bank of Baroda (BOB) is a financial services company that provides banking services. It

offers personal banking, business banking, corporate banking, merchant banking and treasury

banking services. The bank primarily operates in the US, the UK and Asia Pacific regions. It

is headquartered in Baroda, India and employs about 38,960 people. The company recorded

revenues of INR87,458.4 million (approximately $1,943.3 million) in the financial year

ended March 2010 (FY2010), an increase of 11% over FY2009. Operating profit was

INR49,352.6 million (approximately $1,096.6 million) in FY2010, an increase of 14.6% overFY2009. Its net profit was INR30,583.3 million (approximately $679.6 million) in FY2010.

The global economic challenges, the Banks international operations continued to remain its

mainstay and contributed almost 24.0% to the Banks total business and 20.0% to its

operating profits in FY10. The Banks international business grew by 31.0% (y-o-y) in FY10


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without any compromise with credit quality. The Banks gross NPA in international

operations stood at 0.47% and net NPA at just 0.11% in FY10.

The Bank has implemented an Integrated Global Treasury Solution in its majoroverseas territories. It has also started providing Online Institutional Trading to its corporatecustomers. During FY10, many other important technological initiatives were taken in thedomain of anti-money laundering, document management system, payment messagingsolution, etc..

3.1.1GROWTH OF THE BANK

Fiscal year ending March 2001 was yet another period of all-round growth for Bank ofBaroda, according to its Annual Report released last fortnight in Mumbai.The Banks net

profit from its domestic and overseas operations reached $ 1.24 billion, accounting for anincrease of 38.7% over the previous financial year, while Operating Profit, at $2.05 billion,was up by an impressive 43.8%.

3.1.2The banks performance

However, according to the banks global financial results, it experienced a smalldecline in its net profit from US$664.85 million to US$640.73, while enjoying an increase inits total business of US$90452.08 million to US$106243.62 million. Its advances also had anincrease of US$38051.15 to US$45045.38 million and deposits read from US$52400.93 toUS$61198.24

International Operations

Wide global network

Bank of Baroda started its overseas journey by opening its first branch way back in1953 in Mombassa, Kenya. Since then the Bank has come a long way in expanding itsinternational network to serve NRls/PIOs, Indian Corporates around the world and to meetthe banking requirements of the local population in the country of operation. The Bank hastransformed intoIndia's International Bank.

Bank of Baroda had a total workforce of 38063 employees offering their services to theinstitution as of September 2006. Out of these, 13525 were Officers, 16497 were Clerkswhile 8041 were Sub-Staff members.

The bank offers a wide array of customized and specialized services to meet the diverseneeds of its customers, and these services have been categorized into Personal Banking,

Business Banking, Corporate Banking, International Banking, Treasury Banking and RuralBanking services.

The Bank has significant international presence with a network of 85 branches/offices in 26 countries including 53 branches/offices of the Bank, 28 branches of its 8Subsidiaries and 3 Representative Offices in Malaysia, Thailand & Australia. The Bank alsohas a Joint Venture in Zambia with 12 branches.


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The Bank has presence in world's major financial centers i.e. New York, London,Brussels, Dubai, Hong Kong and Singapore.

Bank of Baroda is pursuing an ambitious overseas expansion plan and is in the process of

identifying/opening more overseas centers for increasing its global presence to serve its 37million global customers in still better way.

During the current year bank has opened branch at IIford, U.K. & Auckland, New Zealandof its wholly owned subsidiary-Bank of Baroda (new Zealand) Ltd and -3- ElectronicBanking Service Units in UAE at RAKIA, Ras Al Khaimah, Al Quasis, Dubai and Sh. ZayedRoad, Dubai.

Bank has plans to establish overseas offices in Canada, Qatar, Suriname, Kuwait, Saudi

Arabia etc and also expand the network in UAE, Oman, Mauritius, China, Botswana, Kenyaand Uganda etc. It has further plans to upgrade its Representative Offices in Australia to a

branch and set up a Joint venture Commercial Bank.

OVERSEAS BRANCHES

Bahamas

Bahrain

Belgium

China

Fiji Islands

Hong Kong

Mauritius

Republic of South Africa

Seychelles

Singapore

Sultanate of Oman

United Arab Emirates

United Kingdom


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United States Of America

3.2 MICRO SCENARIO

BANK OF BARODA IN INDIAN SCENARIO

Bank of Baroda is one of the most prominent banks in India, having its total assets asRs. 1,43,146 Crores as on 31st of March 2007. The bank was founded by Maharaja SayajiraoGaekwad III (also known as Shrimant Gopalrao Gaekwad), the then Maharaja of Baroda on20th of July 1908 with a paid capital of Rs. 10 Lacs. From its introduction in a small buildingof Baroda, the bank has come a long way to achieve its current position as one of the mostimportant banks in India. On 19th of July 1969, Bank of Baroda was nationalized by theGovernment of India along with 13 other commercial banks.

3.2.1Customers

Individual Stock Broking Entities HUF (Hindu Undivided Family) Proprietorship Concerns Public Limited Companies Public Limited Companies Corporate Partnership Firms

3.2.2Competitors

y State Bank of Indiay Punjab National Banky Union Bank of Indiay H DF Cy ICICIy Standard Chartered Banky HSBC

3.2.3 LOCAL DEPOSITS OF BOB IN COIMBATORE

Bank of Baroda offers various deposit plans that you can choose from depending on theterm period, nature of deposit and its unique saving and withdrawal features.


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Apart from competitive interest rates and convenient withdrawal options, our deposit plansoffer other features such as overdraft facility, outstation cheque collections, safe deposit

lockers, ATM's etc.

Fixed deposits are categorised into deposits with a term period of less than 12 months,more than 12 months and recurring deposits. These deposit plans offer convenient solutions

to both working individuals as well as senior citizens.

Current and saving deposits are ideal for individuals who wish to take advantage ofmultiple benefits within the same plan and even be eligible to opt for overdrafts

3.2.4 COIMBATORE BRANCHES

Bank of Baroda-Gopala PuramCoimbatore

Bank of Baroda-Ram NagarCoimbatore

Bank of Baroda-TatabadCoimbatore

Bank of Baroda-Saibaba colonyCoimbatore

Bank of Baroda-peelameduCoimbatore

Bank of Baroda-RathinasabapathyCoimbatore

Documents

Pro- New Edited CHAPTER 1