FINALbank of Baroda PPT

8/3/2019 FINALbank of Baroda PPT

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BANK OF BARODABANK OF BARODA


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CONTENTCONTENT

y INTRODUCTION

y METHODS

y MARKETING STRATEGYy MARKET

SEGMENTATION

y Contents

y International presence

y Bank of Braoda Branch

Locator


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History

1908-1959

1960s

1970s

1980s

1990s

2000s

2010s

Subsidiaries

Bank of Baroda financials 2011

CSR ASSETS

FUNCTION


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Type Public

Traded as BSE: 532134

Industry

Banking

Financial services

Investment services

Founded 1908

Headquarters

Bank of Baroda,

Baroda Corporate Centre,

Plot No - C-26, G - Block,

BandraKurla Complex,

Mumbai India

Key peopleM D Mallya

(Chairman& MD

)

Products

Finance and insurance

Consumer banking

Corporate banking

Investment banking

Investment management

Private banking

Private equity

Mortgages

Credit cards

Revenue24,695.10 crore (US$5.51

billion) (2011) [1]

Total assets358,397crore (US$79.92

billion) (2011) [2]

Website www.bankofbaroda.com


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INTRODUCTIONINTRODUCTION

y Bank of Baroda is the third largest bank in India,after the State Bank of India and the PunjabNational Bank and ahead of ICICI Bank.

y The Maharajah of Baroda, Sir Sayajirao Gaekwad III,

founded the bank on 20 July 1908 in the princelystate of Baroda, in Gujarat.

y The bank, along with 13 other major commercial

banks of India, was nationalized on 19 July 1969, bythe government of India.

y M D Mallya is the chairman and MD


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y BoB has total assets in excess of Rs. 3.58 lakh

crores, or Rs. 3,583 billion, a network of over3,409 branches and offices, and about 1,657

ATMs. It plans to open 400 new branches in the

coming year. It offers a wide range of banking

products and financial services to corporate andretail customers through a variety of delivery

channels and through its specialized subsidiaries

and affiliates in the areas of investment banking,

credit cards and asset management. Its totalbusiness was Rs. 5,452 billion as of June 30.


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METHODS OF INCREASINGMETHODS OF INCREASING

M

ARKET SHAREM

ARKET SHAREy Marketing strategyy Market segmentation

y Service marketing in banking sector.

y 7ps in banking sector

y Using CSR as a marketing tool in banking

sector.

y

Hybrid marketing channels in service sector.


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MARKETING STRATEGY OFMARKETING STRATEGY OF

BANK OF BORODABANK OF BORODA

Market penetration

Agriculture and

Allied sector

Manufacturing

Product

Development

Retail chain

Infrastructure financingExport Financing

Mutual Fund

Market development

Retail Finance

Housing Finance

Agro-Processing

Diversification

International Corporative

Financing

Defense Equipment

Oil and Gas Exploration

OLD

MKT

NEW


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MARKET SEGMENTATIONMARKET SEGMENTATION

DEMOGRAPHIC GEOGRAPHIC

PHYCHOGRAPHIC BEHAVIORAL


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y Bank of Baroda Building in Dubai

y In its international expansion, the Bank of Baroda followed theIndian diaspora, especially that of the Gujaratis. It has significant

international presence with a network of 72 offices in 25countries, six subsidiaries, and four representative offices. [5]

y Among the Bank of Barodas 43 overseas branches are ones inthe worlds major financial centers (e.g., New York, London,

Dubai, Hong Kong (which it has upgraded recently), Brussels and

Singapore), as well as a number in other countries. The bank is

engaged in retail banking via 17 branches of subsidiaries in

Botswana, Guyana, Kenya, Tanzania, and Uganda. The Bank of

Baroda also has a joint-venture bank in Zambia with ninebranches. The Bank of Baroda maintains representative offices in

Malaysia,China, Thailand, and Australia. It plans to upgrade itsoffices in China and Malaysia shortly to a branch and joint-

venture, respectively.

International presenceInternational presence


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y The Bank of Baroda has received permission or

in principle approval from host countryregulators to open new offices in Trinidad and

Tobago and Ghana, where it seeks to establish

joint ventures or subsidiaries. The bank has

received Reserve Bank ofIndia approval to openoffices in The Maldives, and New Zealand. It is

seeking approval for operations in Bahrain,

South Africa, Kuwait,Mozambique, and Qatar

and is establishing offices in Canada, New

Zealand, Sri Lanka, Bahrain, Saudi Arabia, andRussia. It also has plans to extend its existing

operations in the United Kingdom, the United

Arab Emirates, and Botswana. The slogan of

Bank of Baroda is "India's International Bank".


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y Bank of Braoda Branch Locator.

y History

y 1908-1959

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

y 1910: BoB established its first branch in Ahmedabad.

y 1953: BoB established a branch in Mombasa and another in Kampala.

y 1954: BoB opened a branch in Nairobi.

y 1956: BoB opened a branch in Dar-es-Salaam.

y 1957: BoB established a branch in London.

y 1959: BoB acquired Hind Bank.

y 1960s

y 1961: BoB merged in New Citizen Bank ofIndia. This merger helped it increase its branch network inMaharashtra.

y BOB also opened a branch in Fiji.

y 1962: BoB opened a branch in Mauritius.

y 1963: BoB acquired Surat Banking Corporation in Surat, Gujarat.

y 1964: BoB acquired two banks, Umbergaon Peoples Bank in southern Gujarat and Tamil Nadu Central

Bank in Tamil Nadu state.

y 1964: BoB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistan war. It is unclear when

BOB had opened the branch.

y 1965: BoB opened a branch in Guyana.

y 1967: The Tanzanian government nationalized BoBs three branches there and transferred theiroperations to the Tanzanian government-owned National Banking Corporation.

y 1969: The Government ofIndia nationalized 14 top banks, including BoB.

y BoB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest.


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y 1970s

y 1972: BoB acquired The Bank ofIndias operations in Uganda.

y 1974: BoB opened a branch each in Dubai and Abu Dhabi.

y 1975: BoB acquired the majority shareholding and management control of Bareilly CorporationBank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bankhas expanded to Uttarakhand State.

y 1976: BoB opened a branch in Oman and another in Brussels. The Brussels branch was aimed atIndian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business inAntwerp, a major center for diamond cutting.

y 1978: BoB opened a branch in New York and another in the Seychelles.

y 1979: BoB opened a branch in Nassau, the Bahamas.

y 1977: BoB Opened a branch in Imphal

y 1980s

y BoB opened a branch in Bahrain and a representative office in Sydney, Australia.

y BoB, Union Bank ofIndia and Indian Bank established IUB International Finance, a licenseddeposit taker, in Hong Kong. Each of the three banks took an equal share.

y 1985: BoB (20%), Bank ofIndia (20%),Central Bank ofIndia (20%) and ZIMCO (Zambian

government; 40%) established Indo-Zambia Bank (Lusaka). BoB also opened an Offshore BankingUnit (OBU) in Bahrain.

y 1988: BoB acquired Traders Bank, which had a branch network in Delhi.


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y 1990s

y 1990: BoB opened an OBU in Mauritius, but closed its representative office in Sydney.

y 1991: BoB took over the London branches of Union Bank ofIndia and Punjab & Sind Bank (P&S).

P&Ss branch had been established before 1970 and Union Banks after 1980. The Reserve Bank ofIndia ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987and subsequent losses.

y 1992 BoB incorporated its operations in Kenya into a local subsidiary with a small tranche ofshares quoted on the Nairobi Stock Exchange.

y 1993: BoB closed its OBU in Bahrain.

y 1996: BoB Bank entered the capital market in December with an Initial Public Offering (IPO). TheGovernment ofIndia is still the largest shareholder, owning 66% of the bank's equity.

y 1997: BoB opened a branch in Durban.

y 1998: BoB bought out its partners in IUB International Finance in Hong Kong. Apparently this was

a response to regulatory changes following Hong Kongs reversion to the Peoples Republic ofChina. The now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restrictedlicense bank.

y BoB also acquired PunjabCooperative Bank in a rescue.

y BoB also incorporate wholly owned subsidiary BOB Capital Markets Ltd.for Broking Business.

y

1999: BoB merged in BareillyC

orporation Bank in another rescue. At the time, Bareilly had 64branches, including four in Delhi.

y In Guyana, BoB incorporated its branch as a subsidiary, Bank of Baroda Guyana.

y BoB added a branch in Mauritius, but closed its Harrow Branch in London.


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y 2000s

y 2000: BoB established Bank of Baroda (Botswana).

y 2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank ofIndias request. BSB wasestablished in 1946 but traced its origins back to 1871 and its function as the treasury office of the

Benares state. In 1964, BSB had acquired Bareilly Bank (est. 1934), with seven branches; it also hadtaken over Lucknow Bank in 1968. The acquisition of BSB brought BOB 105 new branches.

y 2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE).

y 2003: BoB opened an OBU in Mumbai.

y 2004: BoB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing asubsidiary in Dar-es-Salaam. BoB also opened a representative office each in Kuala Lumpur,Malaysia, and Guangdong,China.

y 2005: BoB built a Global Data Centre (DC) in Mumbai for running its centralized banking solution

(CBS) and other applications in more than 1,900 branches across India and 20 other countieswhere the bank operates. BoB also opened a representative office in Thailand.

y 2006: BoB established an Offshrore Banking Unit (OBU) in Singapore.

y 2007: In its centenary year, BoBs total business crossed 2.09 lakh crores, its branches crossed1000, and its global customer base 29 million people.

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

y

2008: BoB opened a joint venture life insurance company with Andhra Bank and Legal andGeneral (UK) called IndiaFirst Life InsuranceCompany

y 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)

y 2010s

y 2010:Malaysia awarded a commercial banking license to a locally incorporated bank to be jointlyowned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank, India BIA Bank(Malaysia), will reside in Kuala Lumpur, which has a large population ofIndians. Andhra Bank will

hold a 25% stake in the joint-venture, BoB will own 40% and IOB the remaining 35%.


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y Subsidiaries

y BOB Capital Markets Ltd. (BOBCAPS) is a SEBI-

registered investment banking company based in

Mumbai,Maharashtra. [7] It is a wholly owned

subsidiary of Bank of Baroda.[8] Its financial

services portfolio includes Initial Public

Offerings, private placement of debts, corporaterestructuring, Business valuation, mergers &

acquisition, project appraisal and loan

syndication.

y Bank of Baroda financials 2011

y Sales Rs. 24,695 crores

y Profits Rs. 4,241 crores

y Assets Rs. 3,58,397 croreS


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CSRCSR

y It has been the vision of Bank to empower the community

through socio-economic development of underprivileged and

weaker sections.In its continued efforts to make a difference tothe society at large Bank further intensified its efforts in this

direction in 2010-11. As stated earlier, Bank has established 36

Baroda Swarojgar Vikas Sansthan (Baroda R-SETI

) for impartingtraining to unemployed youth, free of cost for gainful self

employment and entrepreneurship skill development. This is

done with a view to improve their economic status and give aboost to the local economy. Additionally, Bank has established 52

Baroda Gramin Paramarsh Kendra for knowledge sharing,problem solving and credit counseling for rural masses across the

country. In order to spread awareness among the rural masses

on various financial and banking services and to speed up the

process of Financial Inclusion, Bank has also established 18

Financial Literacy and Credit Counseling Centres (FLCC).


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y Bank has neatly designed a three year Financial

Inclusion Plan based on two delivery channel

models [1] Application Service Provider (ASP)

model with Biometric Smart Card based

technology and [2] Mobile Banking model usingMobile Vans within a cluster of villages in close

proximity to the Banks existing branches.

During the period under review, Bank deployed

four such mobile vans one each in Gujarat and

Bihar and two in Uttar Pradesh.


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ASSETSASSETSy Asset Quality

y While the Indian banking industry continued to reel under the pressure of stressed asset quality,

your bank could again restrict its Gross NPA to 1.36% and Net NPA to 0.35% during 2010-11,thanks to its robust systems of credit origination, credit monitoring and asset recovery. TheBanks Incremental Delinquency Ratio too was contained at 1.09% during the year under review.Your Banks rigorous follow up of all NPA accounts and timely response to early warning signalsresulted in Cash Recovery of Rs 455.49 crore. Your Bank could upgrade accounts to the tune of Rs189.17 crore to standard category.

y Moreover, your Bank recovered Rs 272.66 crore from the prudentially written off accounts. YourBanks NPA Coverage Ratio (including technical write-off) stood at the rich level of 85.0% in 2010-11 as against the regulatory requirement of 70.0%.

y Cost-Income Ratio

y Your BanksCost-Income Ratio further declined from 43.57% in 2009-10 to 39.87% in 2010-11 on

the back of improved operating efficiency during the year under review.

y Net Worth

y Your Banks Net Worth grew by a rich 43.27% (y-o-y) to Rs 19,750.63 crore from the last yearslevel of Rs 13,785.14 crore.


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y Return on Average Assets

y Your Banks Return on Average Assets sharply improved from

1.21% in 2009-10 to 1.33% on the back of sustained gains in coreearnings and operating efficiency.

y Book Value per Share

y Banks Book Value per Share sharply improved from Rs 378.44 in

2009-10 to Rs 504.43 reflecting a rich growth of 33.3% (y-o-y).

y Earnings Per Share

y Banks Earnings per Share too increased significantly from Rs

83.96 in2009-10 to Rs 116.37 in 2010-11 (crossing the mark of Rs

100 for the first time during an interim quarter of 2010-11)

reflecting a sizeable growth of 38.60% (y-o-y).


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FUNCTIONFUNCTIONy ion 6 of Banking Regulation Act, 1949 reads as follows :-

y "Forms of business in which banking companies may engage -

y 1. In addition to the business of banking, a banking company may engage in any one or more

of the following forms of business. namely :-y a. The borrowing, raising, or taking up of money; the lending or advancing of money either

upon or without security; and drawing, making, accepting, discounting, buying, selling, collectingand dealing in bills of exchange, hundies, promissory notes, coupons, drafts, bill of lading, railwayreceipts, warrants, debentures, certificates, scrips and other instruments, and securities whether

transferable or negotiable or not; the granting and issuing of letters of credit, travellers cheques

and circular notes; the buying, selling and dealing in bullion and specie; the buying and selling offoreign exchange, including foreign bank notes; the acquiring , holding, issuing on commission,underwriting and dealing in stock, funds, shares, debentures, debenture stock, bonds, obligations,securities and investments of all kinds; the purchasing and selling of bonds, scrips or other formsof securities on behalf of constituents or others; the negotiating of loans and advances; thereceiving of all kinds of bonds, scrips or valuables on deposit or for safe custody or otherwise; the

providing of safe deposit vaults; the collecting and transmitting of money and securities;y b. Acting as agents for any government or local authority or any other person or persons;

the carrying on of agency business of any description, including the clearing and forwarding ofgoods, giving of receipts and discharges and otherwise acting as an attorney on behalf ofcustomers, but excluding the business of a [Managing Agent or Secretary and Treasurer] of a

company;y c. Contracting for public and private loans and negotiating and issuing the same;y d. The Effecting, Insuring, Guaranteeing, Underwriting, participating in managing and

carrying out of any issue, public or private, of state, municipal or other loans or of shares, stock,debentures or debenture stock of any company, corporation or association and the lending of

money for the purpose of any such issue;


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y e. Carrying on and transacting every kind of guarantee and indemnity

business;y f. Managing, Selling and Realising any property which may come into the

possession of the company in satisfaction or part satisfaction of any of its claims;y g. Acquiring and holding and generally dealing with any property or any right

title or interest in any such property which may form the security or part of the

security for any loans or advances or which may be connected with any such

security;y h. Undertaking and Executing trusts.y i. Undertaking the administration of estates as Executor, Trustee or

otherwise;y j. Establishing and supporting or aiding in the establishment and support of

associations, institutions, funds, trusts, and conveniences calculated to benefit

employees or ex-employees of the company or the dependents or connections of

such persons; granting pension and allowances and making payments towards

insurance; subscribing to or guaranteeing moneys of charitable or benevolent object

or for any exhibition or for any public., general or useful object.y k. The acquisition, construction, maintenance and alteration of any building or

works necessary or convenient for the purposes of the company;y l. Selling, improving, managing, developing, exchanging, leasing, mortgaging,

disposing of or turning into account or otherwise dealing with all or any part of the

property and rights of the company;y m. Acquiring & Undertaking the whole or any part of the business of any person

or company, when such business is of a nature enumerated or described in this subsection.


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Human Resources (HR)Human Resources (HR)

y The function of HR Management in your Bank primarily focuses on

aligning its existing HR capabilities with the future business plans with a

view to maximize returns and fulfill the objective of its massive business

transformation plan. Your Bank took several initiatives during the year

under review, to enhance the level of employee motivation, commitment

and productivity. Your Bank is endowed with a competent and motivatedemployee base of around 39,385 who are engaged in handling the

extensive business operations of the Bank across the globe. During 2010-

11, your Bank implemented a comprehensive HR technology platform

covering HR Management, Training, Payroll & Leave modules enabling

automation of various functions.

y Considering the critical need for building leadership competencies in

Senior Executives, your Bank launched a comprehensive leadership

development program Project UDAAN during 2010-11 with the prime

objective of creating leaders for the future. Such a massive and

comprehensive leadership development effort is unparalleled in the

Indian banking industry and first of its kind for any Indian state-owned

Bank.


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AcknowledgementAcknowledgement

y I would like to take this opportunity to thank the Members of the Board

for their valuable guidance, support and prudent counsel. I and my

colleagues on the Board place on record our appreciation for continued

support and guidance received from the Government ofIndia, RBI, SEBI,

other regulatory authorities, various financial institutions, banks and

correspondents inIndia and abroad.

y We also place on record our appreciation for the unstinted trust and

support of our customers, shareholders, investors and vendors.

y As in the past, our performance during 2010-11 was driven by the

dedication and commitment of our employees. On your behalf as well ason behalf of the Board of Directors, I salute the employees of the

y Bank on another impressive performance for the year 2010-11.

y Before I conclude, I would like to thank all of you for your presence and

interest in the Bank.


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THANKTHANK YOUYOU


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PRESENTED BYPRESENTED BY

y ABDUSSAMAD CHANDIWALA

y

SAURABH APTEy DEV JAISING

y RAHUL SAROGI

FINALbank of Baroda PPT

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