Anirudh Bhagirath_Bank of Baroda_Retail Landing

8/6/2019 Anirudh Bhagirath_Bank of Baroda_Retail Landing

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A PROJECT REPORT

ON

BANK OF BARODA

Retail landing-

UNDERTAKEN AT:

Delhi Road ,Alwar.

{Submitted towards the partial fulfillment of the

requirements of the two year full time MBA Programme}

SUBMITTED TO:

FACULTY OF MANAGEMENT STUDIES

(Mohanlal Sukhadia University, Udaipur, Rajasthan)Supervision Guide:- Submitted by:-

Mr. Vinod Sharma Anirudh

Bhagirath (Manager)

MBA (2008-10)


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ACKNOWLEDGEMENTAny piece of work is not completed in one day or without

any co-operation from others. There are many helping

hands behind this project.My lifes professional journey

began with a very renowned organisation that is Bank of

baroda, Delhi Road, Alwar.I take this opportunity to place on my grateful

thanks and sincere gratitude to the officials and staff of bank of baroda for

providing me a wonderful chance of working in a prestigious company.

I wish to extend my gratitude to Mr. V.P.Gothwal, Senior Branch Manager, Delhi

road branch , Alwar and also to my Company Guide Mr.Vinod Sharma,

Manager(credit),Delhi road Branch for giving me a lot of their precious time

and inputs to make this extensive research report. My study could not have

been completed if I had not been able to get all the valuable data and

reference materials from the company.

I would like to express my sincere gratitude to Prof. Karunesh Saxena, Director

of FMS UDAIPUR, Asst. Prof. Mr. Anil Kothari, Placement co-ordinator, FMS

UDAIPUR and Dr. Hanuman Prasad Course Coordinator MBA for their sincere

help and guidance.

Last but not the least I would extend my thanks to all the other members of Bank

of baroda Branch, for their co-operation during my training days.

And I also give the thanks to my all friends and my

parents who help me in this training period.

Anirudh bhagirath.


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PrefaceNo professional curriculum is considered complete without work experience. It is

well evident that work experience is an indispensable part of every professional

course. In the same manner practical work in any organization is must for every

individual, who is undergoing management course. Without the practical exposure

one cannot develop the ability to manage the organisation.

Entering in the organization is like stepping into

altogether a new world. In beginning, everything seems

strange and unheard but as the time passes one can

understands the concept and working of the organization

and thereby develop professional relationship.

Initially it is felt that as if classroom study was irrelevant

and it is useless without practical experience. But

gradually it is realized that all fundamental basic concepts

studied are linked in one or other ways to the practical

aspect of working in an organization. But how and whatcan be done with fundamentals depends upon the

intellectual and applicability of an individual.

Summer training was an exposure to corporate functional

environment. It was opportunity & great pleasure for me

to be in Corporate Environment and having interaction

with concerned people.

This project is based on a brief study of eight weeks oftraining period. Efforts have been made to present all

authentic information as far as possible.


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Content

Acknowledgement--------------------------------------------------------------------

--------------- i

Preface-----------------------------------------------------------------------------------

-------------- ii

History------------------------------------------------------------------------------------

------------- 1-10

Board of directors

Vision and missions

Loans andAdvances-------------------------------------------------------------------------------

11-35

Baroda Traders loan

Baroda car loan

Baroda two-wheelers loan

Baroda vidhya

Baroda personal loan

Baroda home loan

Advance against the security of Indra Vikas Patra

Advance against the security of LIC


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Advance against NSC/KVP

Baroda advance against property

Advance against the security of relief govt. bonds

Baroda scholar

Work done at bank of

baroda----------------------------------------------------------------- 36- 40

SWOT

analysis----------------------------------------------------------------------------------

--- 41

Conclusion and

recommendation------------------------------------------------------------ 42-45

Bibliography

---------------------------------------------------------------------------------------

46

History:-

Bank of Baroda(BoB) is the third largest PublicSector bank in India, after State Bank of India andPunjab National Bank. BoB has total assets inexcess of Rs. 2.27 lakh crores, or Rs. 2,274 bn., anetwork of over 3000 branches and offices, andabout 1100+ ATMs. It offers a wide range ofbanking products and financial services tocorporate and retail customers through a variety ofdelivery channels and through its specialisedsubsidiaries and affiliates in the areas ofinvestment banking, credit cards and assetmanagement.


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Maharajah of Baroda Sir Sayajirao Gaekwad IIIfounded the bank on July 20, 1908 in the princelystate of Baroda, in Gujarat. The bank, along with 13

other major commercial banks of India, wasnationalised on 19 July 1969, by the Government ofIndia.

Bank of Baroda Building in Dubai

In its international expansion Bank of Barodafollowed the Indian diaspora, and especially that ofthe Gujaratis. It has significant internationalpresence with a network of 72 offices in 25
http://en.wikipedia.org/wiki/File:Bank_of_Baroda_in_Dubai_on_31_May_2007.jpghttp://en.wikipedia.org/wiki/File:Bank_of_Baroda_in_Dubai_on_31_May_2007.jpg


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countries, six subsidiaries, and four representativeoffices.

Among Bank of Baroda's 42 overseas branches areones in the worlds major financial centers i.e. NewYork, London, Dubai, Hong Kong (which it hasupgraded recently), Brussels and Singapore, aswell as a number in other countries. The bank isengaged in retail banking via 17 branches ofsubsidiaries in Botswana, Guyana, Kenya,Tanzania, and Uganda. Bank of Baroda also has a

joint-venture bank in Zambia with nine branches.Bank of Baroda maintains representative offices inMalaysia, China, Thailand, and Australia. It plans toupgrade its offices in China and Malaysia shortly toa branch and joint-venture, respectively.

Bank of Baroda has received permission or inprinciple approval from host country regulators toopen new offices in Trinidad and Tobago andGhana, where it is seeking to establish jointventures or subsidiaries. 2 The bank has receivedReserve Bank of India approval to open offices inthe Maldives, and New Zealand. It is seekingapproval for operations in Bahrain, South Africa,Kuwait, Mozambique, and Qatar and is establishing

offices in Canada, New Zealand, Sri Lanka, Bahrain,Saudi Arabia, and Russia. It also has plans toextend its existing operations in the UnitedKingdom, the United Arab Emirates, and Botswana


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History:-

1908-1958

1908: Maharaja Sayajirao Gaekwad III set upBank of Baroda (BOB).

1910: BOB established its first branch inAhmedabad.

1953: BOB established a branch in Mombasaand 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 ofIndia. This merger helped it increase itsbranch network in Maharashtra.

BOB also opened a branch in Fiji.

1962: BOB opened a branch in Mauritius. 1963: BOB acquired Surat Banking

Corporation in Surat, Gujarat.3 1964: BOB acquired two banks, Umbergaon

Peoples Bankin southern Gujarat and TamilNadu Central Bankin Tamil Nadu state.


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1964: BOB lost its branch in Narayanjanj (EastPakistan) due to the Indo-Pakistan war. It isunclear when BOB had opened the branch.

1965: BOB opened a branch in Guyana. 1967: The Tanzanian government nationalized

BOBs three branches there and transferredtheir operations to the Tanzanian government-owned National Banking Corporation.

1969: The Government of India nationalized 14top banks, including BOB.

BOB incorporated its operations in Uganda as a51% subsidiary, with the government owning

the rest.

1970s and 1980s

1972: BOB acquired Bank of Indias operationsin Uganda.

1974: BOB opened a branch each in Dubai andAbu Dhabi.

1975: BOB acquired the majority shareholdingand management control ofBareillyCorporation Bank(est. 1928) and NainitalBank(est. in 1954), both in Uttar Pradesh.Since then, Nainital Bank has expanded to

Uttarakhand State. 1976: BOB opened a branch in Oman and

another in Brussels. The Brussels branch wasaimed at Indian firms from Mumbai (Bombay)engaged in diamond cutting and jewelery


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having business in Antwerp, a major center fordiamond cutting.

1978: BOB opened branch in New York and

another in the Seychelles. 1979: BOB opened a branch in Nassau, the

Bahamas. 4 1980: BOB opened a branch in Bahrain and a

representative office in Sydney, Australia.

BOB, Union Bank of India and Indian Bank

established IUB International Finance, a

licensed deposit taker, in Hong Kong. Each ofthe three banks took an equal share.

1985: BOB (20%), Bank of India (20%), CentralBank of India (20%) and ZIMCO (Zambiangovernment; 40%) established Indo-ZambiaBank(Lusaka).

BOB also opened an Offshore Banking Unit

(OBU) in Bahrain.

1988: BOB acquired Traders Bank, which hada branch network in Delhi.

1990s

1990: BOB opened an OBU in Mauritius, butclosed its representative office in Sydney.

1991: BOB took over the London branches ofUnion Bank of India and Punjab & Sind Bank(P&S). P&Ss branch had been established


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before 1970 and Union Banks after 1980. TheReserve Bank of India ordered the takeover ofthe two following the banks' involvement in the

Sethia fraud in 1987 and subsequent losses. 1992 BOB incorporated its operations in Kenya

into a local subsidiary with a small tranche ofshares quoted on the Nairobi Stock Exchange.

1993: BOB closed its OBU in Bahrain.

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1996: BOB Bank entered the capital market in

December with an Initial Public Offering. TheGovernment of India is still the largestshareholder, owning 66% of the bank's equity.

1997: BOB opened a branch in Durban. 1998: BOB bought out its partners in IUB

International Finance in Hong Kong. Apparentlythis was a response to regulatory changes

following Hong Kongs reversion to the PeoplesRepublic of China. The now wholly ownedsubsidiary became Bank of Baroda (HongKong), a restricted license bank.

BOB also acquired Punjab Cooperative Bank

in a rescue.

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


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In Guyana, BOB incorporated its branch as a

subsidiary, Bank of Baroda Guyana.

BOB added a branch in Mauritius, but closed its

Harrow Branch in London.

2000s

2000: BOB established Bank of Baroda(Botswana).

2002: BOB acquired Benares State BankinBenares at the Reserve Bank of Indias request.

2002: Bank of Baroda (Uganda) was listed onthe Uganda Securities Exchange (USE).

2003: BOB opened an OBU in Mumbai. 2004: BOB acquired the failed Gujarat Local

Area Bank, and returned to Tanzania byestablishing a subsidiary in Dar-es-Salaam.

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BOB also opened a representative office eachin Kuala Lumpur, Malaysia, and Guangdong,

PRC.

2005: The Reserve Bank of India (RBI), hasapproved a joint venture between BOB, Bank ofMaharashtra (BOM), and Oriental Bank of

Commerce (OBC) to set up a bank in Malaysia.The new bank will reside in Kuala Lumpur,which has a large population of Indians. Theinitial capital required will be US$78 million;BOB will invest 40%, and the other two banks


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will invest 30% each. The JV is awaitingapproval from the Malaysian Central Bank.Bank has built and commissioned its own

State-of-the-Art Global Data Centre (DC) inMumbai for running its centralized bankingsolution(CBS) and other applications in 1900+branches across India and 20 other countieswhere the Bank is operating.

BOB also opened a representative office in

Thailand.

2006: BOB established an Offshrore BankingUnit (OBU) in Singapore.

2007: In its centenary year, BOB's totalbusiness crossed 2.09 lakh crores, its branchescrossed 1000, and its global customer base 29million people.

2008: BOB opened a branch in Guangzhou,China (02/08/2008). 2009: Bank of Baroda registered with the

Reserve Bank of New Zealand, enabling it totrade as a bank in New Zealand (2009/09/01)

7

Board of directors:

Name Designation


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Milind N Nadkarni DirectorDharmendraBhandari

Director

V Santhanaraman Executive DirectorR K Bakshi Executive DirectorMaulin A Vaishnav DirectorRanjit KumarChatterjee

Director

Name DesignationAmarjit Chopra DirectorA Somasundaram Director

M D MallyaChairman and Managingdirector

Amitabh Verma DirectorAtul Agarwal DirectorDeepak B Phatak Director


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Our Vision & Mission

Our Mission Statement

8


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A saga of vision and enterprise

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It has been a long and eventful journey of almost acentury across 24 countries. Starting in 1908 froma small building in Baroda to its new hi-rise and hi-


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tech Baroda Corporate Centre in Mumbai, it is asaga of vision, enterprise, financial prudence andcorporate governance.

It is a story scripted in corporate wisdom and socialpride. It is a story crafted in private capital,princely patronage and state ownership. It is astory of ordinary bankers and their extraordinarycontribution in the ascent of Bank of Baroda to theformidable heights of corporate glory. It is a storythat needs to be shared with all those millions of

people - customers, stakeholders, employees & thepublic at large - who in ample measure, havecontributed to the making of an institution.

Singapore Branch

Bank of Barodas Singapore branch wasinaugurated on 19 September, 2006. It is the

Banks 60th overseas office.

The Singapore branch is an off shore bank licensedby Monetary Authority of Singapore and it has aDomestic Banking Unit (DBU) and Asian CurrencyUnit (ACU). With our presence in Hong Kong, China,Malaysia, Thailand, Australia - now joined byoffshore branch in Singapore - the Bank is wellpositioned to synergistically provide internationalBanking services in the Asia- Pacific region. TheBank's long standing presence in the Middle Eastand Africa would provide added advantage to thecustomers of the region.


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We are committed to offer to our customers a widerange of international banking products andservices. These include trade finance, treasury

products, syndicated/bilateral loans, foreigncurrency deposits etc.

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Loans and advances:-

1) Baroda Traders Loan

The Baroda Traders Loan facility enablesindividuals, Proprietorships, bodies such asPartnership firms and Co-op societies to avail ofworking capital or undertake development of shopby way of loan/overdraft. Dealers in gold/ silverjewelry are also covered under the scheme.

Key Benefits

Option to avail the credit facility as loan oroverdraft.

Advance available up to Rs. 200 Lacs.

Loan can be repaid in a maximum period of 60months.

Terms & Conditions

The business units should have beenestablished in the line of business for aminimum period of 2 years


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Loan limits

o Minimum : Rs. 25,000/-

o Maximum : Rs. 200 Lakhs.

Margin

o 40% on market value of immovableproperty.

o 10% on Bank's own Fixed Deposits.11

o 15% on face value of NSCs, Govt. Bonds,surrender value of LIC policies.

Securityo Tangible collateral Securities in the form of

mortgage of land (not agricultural land)and building is acceptable as security

o National Savings Certificates, GovernmentBonds, our Bank's Term Deposits,Assignment of Life Insurance Policies,standing in the name of theborrower/proprietor/partner/director areacceptable as security.


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Interest rates:-

Upto Rs.2lakh 12.75%

Above Rs.2 lakh upto 1 year-13.25%

More then 1 year- 13.5%

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2) Baroda Car Loan

In today's fast paced world, a vehicle is but anecessity. Yet other expenses and plans in life takepriority and the dream of owning a car takes aback seat. Whether as a comfortable anddependable means of transport or as a statussymbol in society, we believe you deserveownership of a vehicle.

The Car Loans from Bank of Baroda aredesigned to finance the car that suits your needand matches to your status & taste.

Bank of Baroda also presents a unique add onfacility for installation ofCNG / LPG gas-kit in


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new/old (not more than 3 years) four wheeler.Save money. Save earth. Convert to alternativefuel today and bank on us for your financial

requirements.Key Benefits

Loans available up to Rs 15 Lacs for any carmake/model (Inclusive of Gas-Kit).

Loans can be availed for new and second-handvehicles (Not more than 3 years old).

Repayment period as long as 7 years.

Low interest rates.

13

Baroda Car Loan

More Benefits

Low processing fee.

Zero prepayment charges

Concession of 0.5 % in rate of interest to thosewho offer minimum 50% liquid security as

collateral.

Terms & Conditions

To qualify as an applicant for this loan, youneed to be an employee or a director of a


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public limited company, businessman,professional, proprietor / partner in a firm or aGovt employee.

The maximum loan amount is Rs. 15 Lakhs, ortwice of your gross annual income if you aresalaried, and thrice of it (average of last 2years gross annual income) if you are abusinessman, whichever is lower.

Maximum loans upto Rs 0.25 lac available forinstallation of CNG/LPG Gas-Kit in new/old (notmore than 5 years) four-wheeler, if takenseparately.

Repayment :

New Vehicles : 84 months.Second hand vehicles : 36 months.

CNG/LPG Gas-Kit : 24 months. (If loansanctioned is only for Gas-Kit)

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Margin :

New Vehicles : 15%Second hand vehicle : 40%Gas kit (new / old vehicle) : 15%

Age :


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Minimum - 21 yearsMaximum present age + repayment periodshould not exceed retirement age in case of

salaried person and 65 years in case of others.

Interest rates:-

Existing a/cs as on 10.08.08 9.5%

Sanctioned on or after 11.08.08 10%

Sanctioned on or after 01.04.09 10.5%

Car loan to corporate 10.75%

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3)Baroda Two Wheeler Loan

For those individuals who prefer to travel moreconservatively or to get to their destinations faster,a two-wheeler is as much a boon as it is to a car


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owner. With newer models coming out each year,the options available to the customer are bothattractive as well as convenient.

Bank of Baroda's Two-Wheeler Loan make itpossible to purchase a two-wheeler and pay backin easy monthly instalments, thereby reducing theburden of a one-time payment.

All resident Indians, salaried, professionals, self-employed, businessmen and farmers can apply for

this loan.Terms & Conditions

Finance for a minimum of Rs. 5000 and amaximum of Rs. 1 Lakh (or five times of themonthly income, whichever is less) can beavailed of through the loan.

Margin of 10% on loan amount.

The loan amount can be repaid in maximum 60months from the date of disbursement of loan.

As a security, the vehicle to be purchased outof the loan is to be hypothecated to the bank.

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For loan exceeding Rs. 50000, a third partyguarantee and / other securities like NSC,


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Share certificates, etc or a mortgage ofproperty owned.

The vehicle will have to be insured with the

bank's clause.

Interest 12%.

17


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4)Baroda Vidya

Bank of Baroda presents a one of its kind financeoption for parents of students pursuing schooleducation. These loans are available for studiesfrom Nursery to Senior Secondary School.

No processing & documentation charges.

No Margin.

No security required.

Terms & Conditions

Eligibility :

Should be an Indian national residing in India.

Student should have secured admission to arecognized school / Highschool / Jr. College(including CBSE / ICSE / State Board) for any ofthe following courses

1.Stage I : Nursery to V th STD.2.Stage II : VI th to VIII STD.3.Stage III : IX th to XII th STD.

Coverage of expenses for :

Fee payable to college / school.


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Examination / Library / Laboratory Fee.

Fee and other charges payable to hostel.18

Purchase of books / equipments / instruments /uniforms.

Personal Computers / Laptops whereverrequired.

Caution deposit / building fund / refundabledeposit supported by instituion bills / receipts.

Maximum Loan Amount : Rs.4.00 Lacs

Repayment Period :

Loan for each yearly sub limit is repayable in12 equal monthly instalments. First instalmentto be due 12 months after first disbursement ofeach year's loan component.

The parents must be residing in the place for aminimum period of -3- years, except in the case oftransferable job.

Security :

In case the loan is given for purchase of

computer the same is to be hypothecated tothe bank.

Rate of Interest :


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1% concession in rate of interest to loans forgirl students.

Interest to be serviced as and when applied

during moratorium period.

Penal Interest @ 2% on overdue amount if theloan amount exceeds Rs. 2/- lacs.

Rates:- Upto Rs.4 lakh 10%

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Above Rs.4 lakh 12%

5) Baroda Personal Loan

A wedding in the family. Maybe it's high time yousurprised your spouse with a priceless gift. Or yousimply need to pamper your family with anextended vacation. These are the times when youmay need a helping hand. That's when you canbank on us. Bank of Baroda's Personal Loan offersfinancial help to meet your personal requirements.

Key Benefits

Helps you take care of all kinds of expenses ata short notice.


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The Loan may be availed to meet expensesrelated to marriage, travel, honeymoon,holiday and medical expenditure or for any

other personal use. The loan is also available to

Pensioners/Defence Pensioners

Loan is also available for Earnest MoneyDeposits for buyers of home/flat/plot.

Baroda Personal Loan

Terms & Conditions

The beneficiaries of this loan can be:

1. Permanent confirmed employees(minimum 1 year service) of

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o Central/State Govt/ /AutonomousBodies/Public/ Joint sectorundertakings.

o Reputed Limited companies / MNCs &Educational Institutions.

2.Self Employed Professional

Doctors, Architects, Interior Designers,Engineers, Chartered Accountants,Technical & Management Consultants &


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practicing Company Secretaries only, witha stable business (minimum 1-year).

3.Insurance agents subject to

a.The agent is doing insurance businessfor the last -5- years

b.The agent has regular and stableincome and maintaining SB a/c with thebank for crediting commission chequesreceived from their principals.

Loan Amount :Minimum : Rs. 20000 andMaximum of Rs. 2,00,000 (Subject to condition)

Repayment :Up to 36 months (maximum) in Equated

Monthly Installments.No pre-payment charges. However, penalty of2% on overdue amount.

Interest rates 14.5%

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Loan to pensioners 13.25%

Loan to Defence pensioners 13.25%


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22

6) Baroda Home LoanBe a proud home owner in 6 days

Bank of Baroda invites you to be a proud ownerof your own home and offers easy Home Loan witha number of conveniences to suit your budget.

Home Loan is available for:


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Purchase of new / old dwelling unit.

Construction of house.

Purchase of plot of land for construction of ahouse.

Repaying a loan already taken from otherHousing Finance Company / Bank.

Repayment period up to 25 years (floating rateoption).

Interest :-

Fixed rate option Upto 30lakh Over to Rs.30lakh

Upto 5 years 9.5% 10.25%

Over 5yrs &

upto10 yrs 9.75% 10.5%

Over 10 years&

upto 15 years 10% 10.75%

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Floating rate option up-30lakh over 30 lakh

Upto 5 yrs 8.5% 9.25%

Over to 5yrs&

upto 15 yrs 8.75% 9.5%


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Over 15 yrs &

upto 25 years 9% 9.75%

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7) Advance Against the security of Indira Vikas

Patra

Nature of facility - Demand Loan

Margin - 25%

Amount of advance


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Minimum: Rs.3000/- Maximum: No ceiling

Rate of Interest - 3.0% above BPLR

Processing Charges - 0.25% on the loan amount

Minimum: Rs.100/- Maximum: Rs.1000/-

Repayment Period - Maximum 35 EMIs or withinthe maturity period

Security/Documentation - As per Bank's norms

25

8)Advance Against the security of Life InsurancePolicies

. Nature of facility

Demand / Term Loan Overdraft


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Margin

15% of surrender value, if the insurance policyis maturing within a period of less than 3 years

20% of surrender value, if the residual maturityperiod is 3 years and above.

Amount of advance

Minimumo Demand Loan : Rs.3000/-o Overdraft: Rs.20,000/-

Repayment Period

Demand Loan:

Maximum 60 EMIs subject to maturity date ofpolicy. Financial assistance to identified individuals

and enterprises engaged in industry, services,and trading activities. Clients Group: Lendingin Tri-State area of New York, New Jersey andConnecticut. However, the customers outsidethe tri state area 26 may also be consideredfor general lending - on individual selectionbasis, like-

Companies / Firms / Individuals carrying outtrade with India or with the Bank's


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branches in other countries.

US Corporations with existing or potentialbusiness opportunities in India or in other

centers where there are branches of Bank ofBaroda.

Individual / Firms / Corporations in the USintroduced by Bank's other offices in India

or offices in other countries

Certain Dollar denominated InternationalLoans/Lines of Credit as approved by Home

Office. Type of Finance:Overdraft against receivables / inventory,

Short term self-liquidating transactions involvingLetters of Credit, Acceptances, Trust

Receipt Advances,Bills Purchased/Discountedunder or outside L/Cs and the like.

Revolving Credit Demand Loans

Term Loan for premises / equipment / machinery

Opening / issuance of Letters of Credit / StandbyLetters of Credit. Loans Products:Lending under Small Business Administration

Lending for Real Estate for Business purposeonly.

Loans Syndication for Corporates

Credit Linked Notes for Corporates27


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Discounting of Usance Bills on Indian Corporates. General Considerations : Recognizing the purpose and income

generating capacity of the business / projectsfor servicing principal and interest on acompetitive basis. Other terms and conditionslike period of loan, Margin and collateral shallbe stipulated as per Bank's loan policy.


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28

9) Advance Against National Savings Certificates(NSC) / Kisan Vikas Patra (KVP)

Nature of facility


Margin

15% of face value of NSC /KVP ( if residual

maturity period is less than 3 years) 20% of face value of NSC /(KVP) ( if the residual

maturity period is 3 years and above)

Amount of advance

Minimumo Loan : Rs.3000/-o Overdraft: Rs.20,000/-

Repayment of loan in easy EMIs.


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29

10)Baroda Advance Against Property

Bank of Baroda brings to you an innovativecombination of a loan and over draft facility withflexible repayment options against the security ofyour immovable property.

Key Benefits:-

Ideal use of idle property - Generate

additional income from an otherwise idleproperty.

Withdraw money as per your need and save oninterest cost.

Deposit surplus money / regular income /salary and save interest.

Flexibility to withdraw money deposited earlier.

Can be availed either as overdraft or demandloan as per your need.

Salient Features

Limit:

Minimum : Rs. 1.5 lac


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Maximum areas

o Rural areas: Rs. 5 Lacso Other areas: Rs. 15 Lacs

30

Repayment

o Loan: Maximum 84 EMIs

Easy Documentation

Mortgage loan from other banks can be takenover

Terms & Conditions

Eligibility:

Salaried Employees / Professional, Self Employed &Other income tax assesses for last 3 years with aminimum gross annual income of Rs. 60000.

Age: Minimum 21 years

Income Criteria:

Salaried: 36 times ofnet monthly income Others: 3.5 times ofnet annual income

(average of last 3 years)


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Interest 13.25%

31

11) Advance Against the security of ReliefBonds/Government Bonds eligible for bank financeand not restricted from availing Bank Finance

Nature of facility


Margin

15% of face value - if residual period of ReliefBonds is up to 3 years

20% of face value - if residual period is over 3years

Amount of advance

Minimumo Loan: Rs.3000/-o Overdraft: Rs.20,000/-

Repayment of loan in easy EMIs.


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32

12)Baroda Scholar

Bank of Baroda presents financial assistance tostudents going abroad for Professional / Technicalstudies. The loan offering is designed to empower

you with the financial capability to realise yourdreams... Achieve your goals... Reach out to themaximum limits...

Terms & Conditions

Eligiblity of Courses :

Graduate/Post Graduate / Doctorate / Job OrientedProfessional / Technical Courses offered by reputedUniversities overseas.

Regular Degree/ Diploma courses like Aeronautical,pilot training, shipping etc. The Institute should berecognized by the competent local aviation /

shipping authority and Director General of CivilAviation/shipping in India.

Student Eligiblity :

Should be an Indian National.


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Secured admission to Professional/TechnicalCourses at foriegn Universities/Institutions.

Coverage of expenses (for overseas studies) :

Admission/Tuition fees to College/University.

Hostel/Mess charges.33

Examination/Library/Laboratory fee.

Purchase of books/equipments/instruments.

Caution deposit/building fund/refundabledeposit supported by institution bills/reciepts.

One way travel expenses/Passage money.

Purchase of computers if essential forcompletion of the course.

Any other expense required to complete thecourse e.g. study tour, project work, thesis etc.

Maximum amount of loan : Rs. 20.00 Lacs.

Margin : 15%

Repayment Period :


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Repayment Holiday/Moratorium Period :

Course period + 1 year or 6 months aftergetting job, whichever is earlier.

The loan is repayable in 5-7 years afterthe above period.

Security :

Upto Rs.4.00/- lacs : No security

34

Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs:Collateral in the form of a suitable thirdparty guarantee alognwith assignment offuture income.

Above Rs.7.5 lacs: Tangible collateral securityequal to 100% of the loanamount along with assignment of futureincome

Rate of Interest :

Simple interest during repaymentholiday/moratorium period.

1% interest concession, if interest debitedduring the repayment holiday is serviced.


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1% Concession in rate of interest to loans forgirl student.

Upto 4 lakh 10.5%

Above 4 lakh 11.5%.

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Work done at bank of baroda:-

My work at bob is to convince the customersregarding the various loan which are available withbob according to there needs.

At my first week at bob:-

Number of customers I met :- 25


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Products offered:- people interested

a)education loan 5

b) car loan 8

c) personal loan 6

d)two wheeler loan 2

e) home loan 4

loan sanctioned:-

-Nil-

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At my second week at bob:-



a)education loan 3

b) car loan 5

c) personal loan 5


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e) home loan 4

loan sanctioned:-

1) Rs150000 education loan.

At my third week at bob:-



a)education loan 6

b) car loan 10

c) personal loan 5


e) home loan 537

loan sanctioned:-

-nil-

At my fourth week at bob:-



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a)education loan 3

b) car loan 4

c) personal loan 4


e) home loan 2

loan sanctioned:-

1)Rs.50000 personal loan.

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At my fifth week at bob:-



a)education loan 6

b) car loan 3


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c) personal loan 6


e) home loan 4

loan sanctioned:-

-Nil-

At my sixth week at bob:-



a)education loan 6

b) car loan 4

c) personal loan 2


e) home loan 039

loan sanctioned:-

1)Rs.35000 Two wheeler.


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40

SWOT Analysis:-

STRENGTH WEAKNESS


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One of Oldest Bank

Good Brand Name

Complete & Diversified

product portfolio

Investment in Secured

Sector

Latest Technology

High penalty amount

for not keeping

minimum balance

Too much dependent

on Govt. interference.

OPPORTUNITIES THREATS

New areas for bank

financing

Technology

enhancement

Set up in new areas

like small business

units.

Competitors

Fluctuation in market

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Conclusion & recommendations:-

Marketing Initiatives

The mid-eighties marked the beginning of the shiftto a buyers` market. The Bank orchestrated itsbusiness strategies around the centrality of thecustomer. It diversified into areas of merchantbanking, housing finance, credit cards and mutual

funds. A string of segment specific branchesentrenched operations in the profitable markets.Overseas operations were revamped and structuralchanges intensified in the territories to cater tosecond generation NRIs. Slowly but surely, themove to become a one stop financial supermarkethad been set in motion. Service delivery standards

were stipulated.Technology was adopted to add punch. Employeesacross the board were inculcated with themarketing concept. Aggressive marketing becamethe new business philosophy.


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42

People Initiatives

Bank of Baroda has always had an immense faithin the infinite potential of its people. This has beenhistorically demonstrated in its recruitmentpractices, developmental initiatives, placementprocesses and promotion policies. Strategic HRinterventions like, according cross border and cross

cultural work exposure to its managers, hiringdiverse functional specialists to support linefunctionaries and complementing the technicalcompetencies of its people by impartingconceptual, managerial and leadership skills, gavethe Bank competitive advantage. The elaborateman management policies also made the Bank abreeding ground for business leaders. The Bankprovided around a dozen CEOs to the industry-men who went on to build other great institutions.People initiatives were blended with IR initiatives tocreate an effectively harmonious workplace, whereeveryone prospered.


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43

Financial Initiatives

New norms for capital adequacy required new

capital management strategies. In 1995 the Bankraised Rs 300 crores through a Bond issue. In 1996the Bank tapped the capital market with an IPO ofRs 850 crores. Despite adverse market conditionsprevailing then, the issue was over subscribed,reflecting the positive public perception of theBank's fundamental financial strength.

Digital Initiatives

Bank of Baroda pioneered the shift from manualoperating systems to a computerized workenvironment. Starting with ledgers, to ledgerposting machines, through ALPMs, the Bankgraduated to the use of Unix based systems to

Mainframes, to client server based Total BranchMechanization Systems. Today, the Bank has 1918computerized branches, covering 70% of itsnetwork and 91.64% of its business. Alive to thegrowing complexities of an intensely competitive


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marketplace and the mounting expectations ofcustomers fuelled by this competition, the Bankreworked its distribution strategy. It ventured

beyond the brick and mortar delivery channel intoATMs and the OmniBOB range of anytime,anywhere electronic channels of PC banking,telephone banking. The e-banking products usedstate of the art technologies like digital certificates,smart card authentication and secure networking.

The new IT strategy, in the process of

implementation will see the deployment of CoreBanking Systems, Multi Service Transaction Switch,Payment Gateways - all geared to deliverconvenience banking.

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Quality Initiatives

In its relentless striving for quality perfection, theBank secured the ISO 9001:2000 certification for15 branches. By end of the current financial, theBank is targeting 54 more branches for this qualitycertification.

The Future

Revolutionary and discontinuous changes in theoperating environment are a stark reminder thatbusiness success is 'impermanent'. The emergence


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of IT as a major driver for change, has accentuatedthe need to initiate a major transformationprogram. The conversion to an IT savvy, market

driven bank will be a prerequisite to survival andgrowth. A major and strategic step in hi-tech, wasthe establishment of the Integrated Treasurybranch, as a forerunner to full-fledged globaltreasury operations. Towards creating a futureBank of Baroda, the Bank has adopted arevolutionary new business strategy that will beenabled by a revolutionary new IT strategy.Actioning this strategy will position Bank of Barodaas India's uncontested premier bank.

At Bank of Baroda, change is a journey. It has abeginning. There will be no end. It will be a longand difficult march. And the Bank will emergestronger, more resilient and positioned to become

India's first bank of truly global standards. Therelocation to the imposing Baroda CorporateCentre, is a true reflection of the Bank's resolve tomove ahead of the times. It will not be out of placenow, as it stands on the threshold of a digital era,to echo the same sentiments that guided the Bankin its platinum jubilee year - 'a promising future isthe sequel to a glorious past'.

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Bibliography:-

WWW.Bankofbaroda.com

www.google.com

www.yahoo.com

www.rupeetimes.com

www.bse.com

www.Timesofindia.com
http://www.bse.com/http://www.timesofindia.com/http://www.bse.com/http://www.timesofindia.com/


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Anirudh Bhagirath_Bank of Baroda_Retail Landing

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