To : Prof K.V. Ramkrishnan

By : Hiren Patel

About BOB

• Third largest Public Sector bank in India, • after State Bank of India and Punjab

National Bank• Founded in 1908• Headquartered at Baroda• It has total of 4267 branches including 70

overseas• Has a total staff of 43587 • CMD of BOB is M.D.Mallaya

It all started with a visionary of Maharaja of Baroda, H.H. Sir Sayajirao Gaekwad III’s uncanny foresight into the future of trade and enterprising in his country. On 20th July 1908, under the Companies Act of 1897, and with a paid up capital of Rs 10 Lacs started the legend that has now translated into a strong, trustworthy financial body, THE BANK OF BARODA.

HISTORY

TIMELINE

• 1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB).• 1910: established its first branch in Ahmedabad• 1953: established a branch in Mombasa and another in Kampala• 1959: acquired Hind Bank.• 1961: merged in New Citizen Bank of India. This merger helped it

increase its branch network in Maharashtra• 1969: The Government of India nationalized 14 top banks, including

BOB• 1975: BOB acquired the majority shareholding and management

control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh

• 1998:BOB also acquired Punjab Cooperative Bank in a rescue.

TIMELINE

• 2007: In its centenary year, BOB's total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people.

• 2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand

• 2010 : In 2010, Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. That same year, BOB also opened a branch in New Zealand.

• 2011 : In 2011, BoB opened an Electronic Banking Service Unit (EBSU) was opened at Hamriya Free Zone, Sharjah (UAE). It also opened four new branches in existing operations in Uganda, Kenya, and Guyana

YEAR 2009 2010 2011 2012

NIM 2.91% 2.74% 3.12% 2.97%

Net Interest Margin

Capital Adequacy Ratio31-3-2009 31-3-2010 31-3-2011 31-3-2012

Capital Adequacy Ratio (BASEL II) 14.05% 14.36% 14.52% 14.67%

Tier - I 8.49% 9.20% 9.99% 10.83%

Tier - II 5.56% 5.16% 4.53% 3.84%

Non Performing Asset

YEAR 2009 2010 2011 2012

TotalNPA’s 178.5 204.63 366.27 582.92

CASA

Particular(Rs crore) Sept’11 Mar’12 Sept’12 Y-O-Y

(%)

ChangeOver

Mar’12 (%)

Global CASA Deposits 90,179 1,03,524 1,05,259 16.7 1.7

Domestic CASA 83,250 92,948 92,979 11.7 0.03

Overseas CASA 6,929 10,576 12,280 77.2 16.1

Credit Deposit Ratio

YEAR 2009 2010 2011 2012

Credit- Deposit

Ratio81.94% 84.47% 86.77% 86.86%

Projection of Parameters2007-08(Annual)

2008-09(Annual)

2009-10(Annual)

2010-11(Annual)

2011-12(Annual)

2012-13 E(Annual)

Assets (Rs crore) 1,83,479 2,26,672 2,78,317 3,58,397 4,47,321 5,58,972

Net Profit (Rs crore) 1,436 2,227 3,058 4,242 5,007 6,842

Source : CAGR Given by BOB

Parameter CAGR (FY08 thru’FY12)

Assets 24.96%

Net Profit 36.65%

BOBFY 12 FY 13

EPS 122 122

P/BV Ratio 1.3 1.1

Source : Motilal Oswal Ltd

Para Banking Activities

Apart from the Loans, Deposits, Credit and Debit Cards, Bank of Baroda offers other services to make financial dealings easy and convenient.

• Demat• Baroda health• Remittances( Baroda money express)• Collection services• ECS(electronic clearing services)• Government business(PPF , tax collection and

savings bonds)

Conclusion• Reorienting its systems and procedures towards

customer convenience and enhanced customer satisfaction.

• Formulating and adhering to the best corporate governance practices.

• Focusing on a consistent and broad-based resource mobilization plan.

• Enlarging the base of retail customers by leveraging technology and taking newer technology based initiatives.