UNIVERSITY OF MUMBAISYDENHAM COLLEGE OF COMMERCE &ECONOMICSB ROAD, CHURCHGATE,MUMBAI-400 020TELEPHONE: 2287-0269

A PROJECT ONHR PRACTICES IN BANKSSUBMITTED BYJITENDRA MAKWANAPROJECT GUIDE: PROF.SMITA KUNTAYSEMESTER VBACHELOR OF COMMERCE (BANKING & INSURANCE)ROLL NO:26

DECLARATION

I hereby declare that this submission is my own work & to the best of my knowledge & belief, it contains no material previously published or written by another person normaterial which to a substantial extent has been accepted for the award of any otherdegree or diploma of the university or other institute of higher learning except where due acknowledge has been made in the text.

ACKNOWLEDGEMENT

I would sincerely like to thank my project guideProf. S. Kuntayforenabling me to successfully carry out the project work through his constant guidance, forendless support and continuous involvement in the project. It was really worthwhile to receive help from Prof. S. Kuntay who in person was always present to help me out anytime i felt his need. Without his constant support this project would not have been acknowledged as it is now. Finally, I owe a great deal of sincere thanks to the faculty members who have been ofgreat support from time to time along with my friends, who kept encouraging me all along.

Contents1. Introduction to Human Resource.62. BOB Logo83. Introduction to BOB.9(A) History(B) Vision(C) Mission(D) BOB Logo(E) Global Presence of BOB(F) The Initiatives4. Human Resource.21(A) HR Objectives(B) HR Initiatives5. Training...28 Succession Planning6. Promotion307. Competitors..338. Business Strategies...349. Conclusion...4010. Recommendations4111. List of Reference..4212. Bibliography.4313. Glossary44

1. Introduction to Human ResourceThe banking industry is highly competitive. The key to a banks success is having the best people. In fact, people are the main commodity. Banks dont manufacture anything; they offer a service. Human Resources is core to the success of the bank. Its the HR team that hires, motivates, and develops the people that offer that service.HR is responsible for people issues across the whole company. This includes things like: Making sure the business is employing the best people, helping develop those people - and importantly ensuring they dont leave! Working with other divisions such as Legal and Compliance to help set company rules - and in some cases communicating those rules to staff Ensuring employees are treated fairly, that they know what their rights are, and that there are measures in place when something goes wrong Helping to develop people strategies to meet the goals of different parts of the business for example: succession planning for senior people or structuring teams to ensure they have the right type of skills and experience.The human resources of an organization consist of all people who perform its activities.

Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function.

The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job.

3. INTRODUCTION TO BOBBank of Baroda (BSE: 532134) (BOB) is the third largest Public Sector bank in India, after State Bank of India and Punjab National Bank. BOB has total assets in excess of Rs.2.27lakhcrores, or Rs. 2,274 billion, a network of over 3000 branches and offices, and about 1100+ ATMs. It offers a wide range of banking products and financial services to corporate and retail 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. Maharajah of Baroda Sir Sayajirao Gaekwad III founded the bank on July 20, 1908 in theprincely state of Baroda, in Gujarat. The bank, along with 13 other major commercialbanks of India, was nationalized on 19 July 1969, by the Government of India.

(A) HISTORY1908-19581908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB). 1910: BOB established its first branch in Ahmadabad.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 Bank1960s1961: BOB merged in New Citizen Bank of India. 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.1964: BOB acquired two banks, Umbergaon Peoples Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.1964: BOB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistan war. It is unclear when BOB had opened the branch.1965: BOB opened a branch in Guyana.

1967: The Tanzanian government nationalized BOBs three branches there and transferred their operations to the Tanzanian government-owned National Banking Corporation.1969: The Government of India nationalized 14 top banks, including BOB.BOB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest.1970s and 1980s1972: BOB acquired 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 (est. 1928) and Nainital Bank (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 was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a major center for diamond cutting.1978: BOB opened branch in New York and another in the Seychelles.1979: BOB opened a branch in Nassau, the Bahamas.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 of the three banks took an equal share.

1985: BOB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established Indo-Zambia Bank (Lusaka).BOB also opened an Offshore Banking Unit (OBU) in Bahrain.1988: BOB acquired Traders Bank, which had a branch network in Delhi.1990s1990: BOB opened an OBU in Mauritius, but closed its representative office in Sydney.1991: BOB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&Ss branch had been established before 1970 and Union Banks after1980. The Reserve Bank of India ordered the takeover of the 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 of shares quoted on the Nairobi Stock Exchange.1993: BOB closed its OBU in Bahrain.1996: BOB Bank entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, 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. Apparently this was a response to regulatory changes following Hong Kongs reversion to the Peoples Republic of China. The now wholly owned subsidiary

Became Bank ofBaroda (Hong Kong), a restricted license bank.BOB also acquired Punjab Cooperative Bank in a rescue.1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. 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.2000s2000: BOB established Bank of Baroda (Botswana).2002: BOB acquired Benares State Bank in Benares at the Reserve Bank of Indias request.2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE).2003: BOB opened an OBU in Mumbai.2004: BOB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing a subsidiary in Dar-es-Salaam.BOB also opened a representative office each in Kuala Lumpur, Malaysia, and Guangdong, PRC.2005: The Reserve Bank of India (RBI) has approved a joint venture between BOB, Bankof Maharashtra (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 ofIndians. The initial capital required will be US$78 million; BOB will invest 40%, and the other two banks will invest 30% each. The JV is awaiting approval from the Malaysian Central Bank. Bank has built and commissioned its own State-of-the-Art Global Data Centre (DC) in Mumbai for running its centralized banking solution (CBS) and otherapplications in 1900+ branches across India and 20 other counties where the Bank isoperating.BOB also opened a representative office in Thailand.2006: BOB established an Offshore Banking Unit (OBU) in Singapore.2007: In its centenary year, BOB's total business crossed 2.09lakhcrores, its branches crossed 1000, and its global customer base 29 million 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 to trade as a bank in New Zealand (2009/09/01).A saga of vision and mission of enterprise.

(B) Vision:It has been a long and eventful journey of almost a century across 25 countries. Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai is a saga of vision, enterprise, financial prudence and corporate governance. It all started with a visionary Maharaja'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 10Lacs started the legend that has now translated into a strong, trustworthy financial body.THE BANK OF BARODAIt has been a wisely orchestrated growth, involving corporate wisdom, social pride and the vision of helping others grow, and growing itself in turn. The founder,Maharaja Sayajirao Gaekwad, with his insight into the future, saw "abank of this nature will prove a beneficial agency for lending, transmission, and deposit of money and will be a powerful factor in the development of art, industries and commerce of the State and adjoining territories."It is a story scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a story of ordinary bankers and theirextraordinary contribution in the ascent of Bank of Baroda to the formidable heights ofcorporate glory. It is a story that needs to be shared with all those millions of people - customers, stakeholders, employees & the public at large - who in ample measure, have contributed to the making of an institution.

(C) Mission:To be a top ranking National Bank of International Standards committed to augmenting stakeholders' value through concern, care and competence.(D) BOB LogoOur new logo is a unique representation of a universal symbol. It comprises dualB letter forms that hold the rays of the rising sun. We call this the Baroda Sun.The sun is an excellent representation of what our bank stands for. It is the single mostpowerful source of light and energy its far-reaching rays dispel darkness to illuminate everything they touch. At Bank of Baroda, we seek to be the sources that will help all ourstakeholders realize their goals. To our customers, we seek to be one-stop, reliablepartners who will help them address different financial needs. To our employees, we offer rewarding careers and to our investors and business partners, maximum return on their investment. The single-colour, compelling vermillion palette has been carefully chosen, for its distinctiveness as it stands for hope and energy. We also recognize that our bank is characterized by diversity. Our network of branches spans geographical and cultural boundaries and rural-urban divides. Our customers come from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face forour brand because it is a universal symbol of dynamism and optimism it is meaningful for our many audiences and easily decoded by all. Our new corporate brand identity is much more than a cosmetic change. It is a signal that we recognize and are prepared for new business paradigms in a globalised world. At the same time, we will always stay in touch with our heritage and enduring relationships on which our bank is founded. By adopting a symbol as simple and powerful as the Baroda Sun, we hope to communicate both.(E) Global Presence of Bank of BarodaGlobal Presence

Australia

Bahamas

Bahrain

Belgium

Botswana

China

Fiji Islands

Ghana

Guyana

Hong Kong

Kenya

Mauritius

Malaysia

Seychelles

South Africa

Singapore

Sultanate of Oman

Tanzania

Trinidad & Tobago

United States of America

United Arab Emirates

United Kingdom

(F) The InitiativeMarketing InitiativesThe mid-eighties marked the beginning of the shift to a buyers` market. The Bankorchestrated its business strategies around the centrality of the customer. It diversified into areas of merchant banking, housing finance, credit cards and mutual funds. A string of segment specific branches entrenched operations in the profitable markets. Overseas operations were revamped and structural changes intensified in the territories to cater to second generation NRIs. Slowly but surely, the move to become a one stop financial supermarket had been set in motion. Service delivery standards were stipulated. Technology was adopted to add punch. Employees across the board were inculcated with the marketing concept. Aggressive marketing became the new business philosophy.

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

Financial InitiativesNew norms for capital adequacy required new capital management strategies. In 1995 the Bank raised Rs 300crores through a Bond issue. In 1996 the Bank tapped the capital25market with an IPO of Rs 850crores, despite adverse market conditions prevailing then, the issue was over subscribed, reflecting the positive public perception of the Bank's fundamental financial strength.

Digital InitiativesBank of Baroda pioneered the shift from manual operating systems to a computerized work environment. Starting with ledgers, to ledger posting machines, through ALPMs the Bank graduated to the use of Unix based systems to Mainframes; to client serverbased Total Branch Mechanization Systems. Today, the Bank has 1918 computerizedbranches, covering 70% of its network and 91.64% of its business. Alive to the growing complexities of an intensely competitive marketplace and the mounting expectations ofcustomers fuelled by this competition, the Bank reworked its distribution strategy. It ventured beyond the brick and mortar delivery channel into ATMs and the Omni BOB range of anytime, anywhere electronic channels of PC banking, telephone banking. Thee-banking products used state 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 Core Banking Systems, Multi Service Transaction Switch, Payment Gateways - all geared to deliver convenience banking.

Quality InitiativesIn its relentless striving for quality perfection, the Bank secured theISO 9001:2000certification for15 branches. By end of the current financial, the Bank is targeting 54more branches for this quality certification.The Future Revolutionary and discontinuous changes in the operating environment is a stark reminder that business success is 'impermanent'. The emergence ofIT as a major driver for change, has accentuated the need to initiate a majortransformation program. The conversion to an IT savvy, market driven bank will be aprerequisite to survival and growth. A major and strategic step in hi-tech, was the establishment of the Integrated Treasury branch, as a forerunner to full-fledged global 26 treasury operations. Towards creating a future Bank of Baroda, the Bank has adopted are evolutionary new business strategy that will be enabled by a revolutionary new ITstrategy. Actioning this strategy will position Bank of Baroda as India's uncontestedpremier bank. At Bank of Baroda, change is a journey. It has a beginning. There will be no end. It will be a long and difficult march. And the Bank will emerge stronger, more resilient and positioned to become India's first bank of truly global standards. The relocation to the imposing Baroda Corporate Centre is a true reflection of the Bank's resolve to move ahead of the times.

4. HUMAN RESOURCES

Bank of Baroda has the tradition of continuous enrichment of its human asset so that they deliver value to the business. In the ongoing Business Transformation Programme, our PEOPLE play a vital role and are one of the key business enablers. Under its plan of organizational transformation through people processes and systems, the Bank has launched a few innovative employee centric initiatives and has also undertaken revamp of key systems and practices.

(A) HR ObjectivesTo initiate & institutionalize globally competitive HR practices in the Bank in our pursuit to become a Bank of international standards and to become an employer of preferred choice;

To put in place relevant HRD strategies and use modern methodologies to undertake organizational renewal;

To identify and nurture talent, bring about marked changes in the mindset of employees at all levels so as to enhance HRQuality;

To create a performance-driven culture and an exciting workplace for the employees

To create a pool ofentrepreneurial managers and business leaders for future;

To inculcate a strong and effective sales and service culture across levels in the organization in order to generate strong stakeholder affiliation;

To create a learning organization for employees intellectual growth and creativity; and to re-skill the workforce to operate in digitally enabled modern core banking environment.

The Strategic HR Business Model adopted by Bank of Baroda incorporates its HRMission and Philosophy and is focused towards attainment of long-term organizational goals. A very strong Organizational Leadership at different levels forms the key link in the Model. These are; Strategic Leadership - Corporate level II.Business Leadership - Zonal & Regional level III.Operational Leadership - Business unit level i.e. branch

The two vital Human Resource sub-systems i.e. HR Planning & Management Sub-System & Competency Based HRD Sub-System shape the very crucial Performance Environment within the Bank which facilitates development of enabling capabilities ofpeople. Through proper developmental inputs, Positive Attitude &Right Mindset is created among people. Through properCommunication Medium and an Organizational Culture of sharing, openness, collaboration & confrontation, autonomy etc., people in the organization are facilitated to give their best output (performance).The Model is adequately supported by a suitable Learning Platform, which impartsproper Knowledge and enhances Learning among people (functional, behavioural etc)so that theirCompetence increases and their potential could be properly leveraged forgreater Individual and Organizational Effectiveness. These create properEmployee Motivation, which ultimately facilitates Goal.

(B) HR Initiatives

Board level approved strategy paper outlining various organization wide HR reforms /interventions HR Steering CommitteeBoard Level HR Committee for piloting HR initiatives and reforms. The Committee comprises of Directors and leading professionals as Experts from outside the Bank KHOJOrganization wide Talent identification and Development Programme for Officers and Clerks (Through scientific process of identification and selection, employees with high potential to be deployed in key business are as. Such employees to be provided with suitable grooming and career growth opportunities) PARAMARSHEmployees Counseling Center(Counseling centers for providing psychological assistance and guidance to overcome their stress, complexities and conflicts in order to lead a better life. This is totally confidential between the employee and the counselorHR RESOURCING POLICYNew HR Resourcing Policy formulate to take care of various recruitment needs of the bankconsequent upon abolition of the erstwhile Banking Services Recruitment Board (BSRB)Performance Appraisal System for Clerical and Sub-Staff

Massive Recruitment of Specialist officers and also graduates from B-Schools through campus recruitmentTo take care of the Banks requirement in different specialized areas like IT, Treasury, HR, Marketing &Sales, Credit, International Business etc (Around 500 officers being recruitedA New Induction cum Grooming Programme for Young OfficersWith the objective of developing future managers and leaders and for deployment in key areas, a re-vamped Officers Induction cum Grooming Programme is launched.Fast Track Career Growth Opportunities for Executives and Officers.In order to provide fast track growth opportunities to aspiring Executives and Officers, promotional opportunities have been provided.

5. TRAINING

To keep up with the fast changing business scenario, product profile, processes, customer preferences, numerous technology applications and compliance & regulatory requirements, training has become a centre-stage activity. The bank conducted 342 training programs in the area of CBS covering 6234 employees during the year. Toprovide appropriate thrust in the area of credit and risk management, 193 programmes were conducted in other functional areas covering 4595 employees during the year. The resources of external Training Institutions and Business schools were tapped for training employees in the functional areas where in-house expertise was not available. 741 Officers and Executives attended training programmes in specialized areas at various external training institutions and reputed Business Schools. Also 20 Officers/Executives attended training overseas.A Leadership Development Program Project LEAPPost-2009 technology environment, competitive compulsions, entry of foreign banks, M&A will all tend to change the course of banking necessitating new breed of leaders at different levels. So managing & leading a financial services organization in such an environment would be a new challenge for future leaders. Further, One of the key drivers for market leadership is the banks internal leadership. It is in response to this that the project LEAP (Leadership enhancement and appreciation process) was conceived and launched aimed to groom the executives in leadership and capability building. Under this program of Bank Of Baroda, nearby three hundred executives has been groomed in leadership in a phased manner.

Its rigorous process involvesTo identify a competency framework for future leaders in the Bank.Administration of psychometric instruments and 360-degree feedback for each identified executive for building on their strength and working in the areas where development is needed.Classroom Orientation & Action Learning Projects.

Succession Planning

Another is KHOJ-For talent Identification and groomingKHOJ initially was initiated as an in-house talent identification and development exercise in 2005. An element of self-development and career planning is built into the system, as this is a voluntary exercise where aspiring employees apply for selection for grooming in various areas they perceive as their areas ofstrength in our operations. Encouraged by the huge response to the initiative, KHOJ exercise has been repeated in 2006 and in2007.Candidates selected under KHOJ are groomed, placed in the area of operation of their choice. As part of their development many are identified as change champions in many of the new initiatives. Mentors are assigned for facilitating their grooming. Exclusive Conclaves of KHOJ selectees were organized. In order to make the KHOJ selectees a vibrant and visible group, due weight age is given to their contribution in career progression, rewards, special assignments, etc.

6.PROMOTION The present procedure of recruitment and promotion in the banks has evolved over the years in an ad hoc man With the objective of bringing an organization wide performance culture in the organization, hitherto un employees in the Clerical and Sub-Staff cadre brought in under a new performance appraisal system. To take care of the Banks requirement in different specialized areas like IT, Treasury, HR, Marketing &Credit, International Business etc. In most of the central government department there is provision for time bound promotion and hence question of stagnation in particular scale does not arise. It is banks that even after completing twenty or thirty years of service in a particular scale promotion is not given to an employee. (Now-a-days Interview is a killer injection in the pocket of management, which can be injected to any good or bad performer inpromotion process as per whims, and fancies of the interviewer).When leaders and bank management can give relief to retired employees In order to provide fast track growth opportunities to aspiring Executives and Officers, promotional offorhave been provided. According to Anurag Khanna, chairman and managing director of Bank net India, a banking research conew recruitments are to keep pace with the banks expansion plans. The banks are adopting fast-track promot fill in any management gap, said Khanna. We are battling private and foreign banks with public sector tools, said Dipankar Mukherjee, general human resources and marketing at Bank of Baroda. Low salary, tough working conditions, frequent transfers and an opaque promotion policy deter public employees from working effectively. Bank of Baroda wanted differential wages for their employees but they could not move ahead with their plan unions opposed that. Titles for the officer cadre start from assistant manager, deputy manager, manager, chief manager, general managing director and the chairman accordingly. Though the pay scaleslightly varies from bank to bank due to many reasons like the working place viz. metro areas the basic scale remains the same for every public sector bank. The employees are promoted on the basis of their score in the exams taken by the bank. It includes written ex-interview. It is taken time to time. There are some qualifications required for appearing in the exam.

The powers and duties of its officers and employees

All the officers from JMGS I to TEGS VI grade of the bank, working in branches have certain discretionary lending and administrative powers depending upon their positions. The Board decides the delegation of suchpowers of various grades of officials. These powers are revised periodically, depending upon the organizations requirement and also Government / RBI guidelines. Whether to sanction a loan or not, is the absolute discretion of the concerned sanctioning authority of thebank and such discretion is exercised, after taking into consideration the relevant facts and circumstances ofeach case.

The procedure followed in the decision-making process, including channels of supervision and accountability.

There is a well-defined system in the Bank regarding decision-making process. The Board takes lending and administrative decisions at various levels from JMGS I to Top Executive grade Scale VII and also by Executive Director and Chairman & Managing Director depending upon their positions as per the discretionary lending powers delegated to them. Branches receive applications for credit facilities and recommend to the appropriate sanctioning authority. In the case of major retail loan products applications areprocessed at branches and Centralised Credit Processing Cells at select centers. There is a well-defined organizational structure and clear system of accountability based on RBI / CVC guidelines. All credit decisions approved by any sanctioning authority are reported to the next higherauthority for control purpose. The system of exercising proper delegation of power and submission of control reports is in place and they are monitored by control officers and through internal inspection.

7.COMPETITORS

CompanySalesCurrent PriceChange (%)

SBI637884.342269.451.99

Bank of India163473.45385.00-0.21

Bank of Baroda150915.67511.30-0.81

IDBI116316.27127.450.08

Indian Bank Ltd.68303.30174.050.26

Dena Bank Ltd.34474.9583.25-0.89

Vijaya Bank 52378.6551.95-0.76

PNB193621.63906.85-1.07

8.Business Strategies

BOB intend to enhance our position as a cost efficient and customer focused institution that provides comprehensive banking and related services, with particular emphasis on the following strategies.Implement new initiatives to accomplish total customer centricity.BOB continue to implement new information technology and other initiatives to provide total customercentricity and have made advances in the networking, computerization and interconnectivity of our branches, ATMs and other delivery channels.As part of our strategy to provide our customers with the best on-demand service, BOB have commenced a comprehensive technology enabled business transformation project.BOB have entered into an agreement with Hewlett Packard (HP) to assist us in delivering a uniform, portal-based IT infrastructure to cover both our domestic and international operations. Through this project BOB will implement and manage an enterprise-wide service-oriented architecture including, among others, core banking, phone banking, Internetbanking, call centre, delivery channel integration, risk and performance management, financial analysis and planning, customer relationship management, data warehousing, enterprise general ledger, global treasury, human resources management system and cheque truncation system. The infrastructure will allow us to realign the way in which BOB interact with our employees and conduct business with our customers and businesspartners. It will also enable us to be compliant with Basel II norms within the prescribed time limit whilst fulfilling the requirements of regulators in various jurisdictions. Our aims that all our branches and offices be brought under our private network in order toprovide our customers with total customer centricity and service their needs on an anywhere anytime basis across the globe. BOBbelieve this will help us to compete and excel in the increasingly challenging and competitive domestic and global banking environments. Our additional customer service initiatives include providing customer services at certainbranches from 8 a.m. to 8 p.m., operating select 24-hour branches, providing value added services on ATMs and introducing low cost rural ATMs.

Grow our international operations:BOB have maintained an international presence for the past 52 years and BOB intend to continue to grow our global operations. Our international branches, Subsidiaries and Associate are focused on providing retail banking, structured products and BOB management services and, along with our representative offices, allow us to focus on asset creation and to develop cross border business by providing trade and project finance, remittances, syndications and correspondent banking services. In addition, BOB are looking to grow our global loan syndication business through our dedicated syndication center located in our London branch. BOB recently opened a branch in Leicester in the United Kingdom and a representative office in Bangkok in Thailand.BOB have received approval from the RBI and are awaiting host country approval for the opening of branches in Houston (USA), Hong Kong Bangladesh, Maldives and an OBU at Singapore. RBI approvals have been received for the opening of new offices in, Canada, New Zealand, Sri Lanka and Trinidad and Tobago and Isle of Man. BOB will continue to lookfor attractive opportunities to expand our international reach and grow our business outside India.

Entering new areas businesses, alliances and strategic acquisitions:BOB intend to expand into new lines of business, which are complementary to ourexisting product and service lines such as life insurance and stock broking.BOB intend to develop these businesses by entering into joint ventures and alliances with leadingproduct and service suppliers and, in some cases, may also make strategic acquisitions.BOB also intend to promote the cross selling of our own and third party products in orderto augment our fee-based revenue.

Reduce cost of funds:BOB have achieved a low overall cost of funds through a large base of low-cost deposits, with total deposits representing 85.92% of our funding as of March 31, 2005. Our low cost deposits, both current and savings, constituted 36.45 % of our total deposits as ofthat date. As of September 30, 2005, our low cost deposits constituted 38.32% of ourtotal deposits. Our total deposits represented 84.78% of our funds as of that date. BOBbelieve BOB can enlarge our low-cost funding base by leveraging our extensive branch network and large customer base, particularly in the rural areas where many of the 65deposits are low-cost savings deposits. In particular, BOB are focused on the retail rural section emphasizing low interest savings deposits. Building our corporate image and our Bank of Baroda brand BOB intend to continue to enhance our brand recognition in the marketplace through ourbrand building efforts. BOB have undertaken various communication and promotional initiatives such as developing and introducing our new logo, appointing a brand ambassador, and launching product focused campaigns. BOB believe that these initiatives, as BOB, will enhance the visibility of our brand name and strengthen ourrecognition as a premiere Indian bank.

Strengthen our priority sector banking business:BOB believe that priority sectors (including agriculture and small-scale industry) offerlarge and potentially profitable growth opportunities. India has large unexploited land resources and a variety of agro-climatic zones. It is one of the largest producers of milk, cereals, vegetables and fruits. Approximately 23.0% of Indias GDP is derived from agriculture. The industry supports approximately two-thirds of Indias population and accounts for14.7% of export earnings. BOB have 1,709 branches in rural and semi-urban centers and BOB intend to maintain and enhance our position as one of the leading banks foragricultural lending in India. BOB have a nationwide presence in the agriculture and small-scale industry sectors. BOB intend to further expand our agriculture and small-scale industry sector banking activities by establishing more small-scale industrybranches. BOB have identified over 500 of our rural branches to target consumers forintensive farm credit lending. BOB see increased potential for credit deployment in agricultural export zones throughout the country. Another aspect of our strategy is to further strengthen our ties with the agricultural community as BOB as related manufacturers. For example, BOB have entered tie-ups with eight tractor-manufacturing companies to promote investment credit, and BOB have also initiated a special scheme for financing the purchase of second hand farming equipment.Bank of Baroda - 5 yr Consolidated PerformanceBank of Baroda is fast trying to catch up with its private sector counterparts! While 5yrgrowth CAGR may seem poor at ~16%, FY08 has seen handsome spurts in growth. Interest Income and Total Income grew by over 30 percent. Bank of Baroda has now emerged as one of the most cost-efficient banks, beating itsprivate sector counterparts HDFC Bank and ICICI Bank and even the smallerand nimbler Axis Bank handsomely. It shows decent margins and return ratios but the stock is still languishing (Apr 2 2009) at less than consolidated book.

Efficiency RatioThe efficiency ratio or cost to income ratio, measures non-interest expense, or operating costs, as a percentage of income. Basically it tells you how efficiently the bank is managed. Many good banks have efficiency ratios under 55% (lower the better) Cost Efficiency ratio has seen significant improvements in the last 3 years with FY08cost-efficiency ratio standing at ~33 percent; beats its private sector peers HDFC Bank, ICICI Bank, and even the smaller, nimbler Axis Bank handsomely and rivals the much smaller Yes Bank.

Efficiency RatioThe efficiency ratio or cost to income ratio, measures non-interest expense, or operating costs, as a percentage of income. Basically it tells you how efficiently the bank is managed. Many good banks have efficiency ratios under 55% (lower the better) Cost Efficiency ratio has seen significant improvements in the last 3 years with FY08cost-efficiency ratio standing at ~33 percent; beats its private sector peers HDFC Bank, ICICI Bank, and even the smaller, nimbler Axis Bank handsomely and rivals the much smaller Yes Bank.Net Interest Margins (NIM)Another simple measure to watch is net interest margin, which looks at net interest income as a percentage of average earning assets. Track margins over time to get a feel for the trend.Net Interest margins have been around the 3 percent mark. FY08 has shown NIMs coming down a bit to 2.9 percent.Strong Revenues Historically many of the best-performing bank investments have been those that haveproven capable of above-average revenue growth While 5yr growth CAGR may seem poor at ~16%, FY08 growth has been good. Interest Income and Total Income growth stands at over 30 percentBank of Baroda Q2 profit jumps 60 pct- Public sector lender Bank of Baroda (BOB) reported a jump of 60 per cent in net profitto Rs 634.18crore for the second quarter ended September over the corresponding period a year earlier.

9.CONLUSION

Bank of Baroda an International bank of India. As the tag line of the bank suggests it is the bank which has stepped in the global market and has left its foot prints everywhere. Bank of Baroda is an organization which had believed in the saving that everyone has to change with the time. BOB changed its logo in 2005 and started its new journey. While visiting the BOB and after taking to the staff members we have found that BOB has reached the Zenith today. It has also been ranked as the top 25th organization by fortune 500 2009 companies.BOB has always provided the good services and hospitality to its customers the allbranched have been applied with core banking services. Most of the branches have 12working hours. From the journey of BOB till date, our group has come to a conclusion that BOB has struggled and survived only due to its mission and vision; its organization structure and also due to its business strategies. Being the budding managers of the future we learned that every organization has to accept the change at some point of time to be the marketleader.BOB has given a new meaning to the banking by understanding the needs of its customers. It has also provided a privilege to India by establishing its branches abroad. Lastly, we would like to conclude by saying that BOB is a gem to India. An organization writing new stories.

10.RECCOMENDATIONS

After studying about BOB our group would like the following recommendations:

BOB needs to increase its number of ATMs in the country. Especially in metropolitan cities. This is because today people dont like standing in queues forwithdrawing money.

Bank of Baroda did very well when Rahul Dravid was endorsed as its brand ambassadors. Today BOB has no ambassadors. Therefore it should endorse someone as their icon.

BOB is not very much liked by the youths of the country. The middle aged and old aged people use it more. Therefore BOB should now concentrate on young generation. It has a huge market in them.

11.LIST OF REFERENCES

http://www.bankofbaroda.com/

http://www.bankofbaroda.com/recruitment.asp

http://finance.indiamart.com/investment_in_india/bank_of_baroda.html

http://en.wikipedia.org/wiki/Bank_of_baroda

http://www.moneycontrol.com/company-article/bank-of-baroda/news/BOB

http://www.citefin.com/1373-history-banking-india.html

http://www.studentsguide.in/careers-in-banking-finance-insurance/history-of-banking-in-india.html

http://business.mapsofindia.com/banks-in-india/bank-of-baroda-credit-card.html

12.BIBLIOGRAPHY

Robbins Stephen P., Judge Timothy A, Sanghi Seema, OrganizationalBehaviour 12th Edition

Bovee,Thill, and Schatzman , Business Communication Today,9th edition

Aswathappa K., Essantials Of Business Environment, 6th Edition

Baroda Next; Annual Report 2008-09

13.GLOSSARY

BSE Bombay Stock Exchange

OBU Offshore Banking Unit

IPO Initial Public Offering

ISO International organization for standardizationHRD Human resource DevelopmentBSRB Banking Service Recruitment BoardGM General ManagerDGM Deputy General ManagerAGM Assistant General ManagerHRM Human Resource ManagementIRS Internal Revenue ServiceSME Small and Medium EnterprisesCAGR Compound Annual Growth RateCMD Chief Managing DirectorATM Automated Teller MachineDEMOGRAPHIC DIVIDEND The demographic dividend is a rise in therate of economic growth due to a rising share of working age people in apopulation

ORGANISATIONAL CULTURE - Specific collection of values and norms that are shared by people and groups in an organization and control the way they interact with each other.

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