BANK OF BARODA

CONTENT

INTRODUCTION METHODS MARKETING STRATEGY MARKET SEGMENTATION International presence CSR ASSETS FUNCTION

HUMAN RESOURCE History

1908-1959 1960s 1970s 1980s 1990s 2000s 2010s

Bank of Baroda financials 2011

Type Traded as

Public BSE: 532134 Banking

Industry

Financial services Investment services

Founded

1908

Bank of Baroda, Baroda Corporate Centre, Headquarters Plot No - C-26, G - Block, Bandra Kurla Complex, Mumbai India

M D Mallya Key people (Chairman & MD) Finance and insurance Consumer banking Corporate banking Investment banking Products Investment management Private banking Private equity Mortgages Credit cards

24,695.10 crore (US$5.51 Revenue billion) (2011)

[1]

358,397 crore (US$79.92 Total assets

INTRODUCTION

Bank of Baroda is the third largest bank in India, after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank. The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in the princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969, by the government of India. M D Mallya is the chairman and MD

BoB has total assets in excess of Rs. 3.58 lakh crores, or Rs. 3,583 billion, a network of over 3,409 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 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. Its total business was Rs. 5,452 billion as of June 30.

METHODS OF INCREASING MARKET SHARE

Marketing strategy Market segmentation Service marketing in banking sector. 7ps in banking sector Using CSR as a marketing tool in banking sector. Hybrid marketing channels in service sector.

MARKETING STRATEGY OF BANK OF BORODA

Market penetration
OLD Agriculture and Allied sector Manufacturing

Product Development
Retail chain Infrastructure financing Export Financing Mutual Fund

MKT

Market development Diversification

Retail Finance Housing Finance Agro-Processing International Corporative Financing Defense Equipment Oil and Gas Exploration

NEW

MARKET SEGMENTATION

DEMOGRAPHIC

GEOGRAPHIC

PHYCHOGRAPHIC

BEHAVIORAL

International presence

Bank of Baroda Building in Dubai In its international expansion, the Bank of Baroda followed the Indian diaspora, especially that of the Gujaratis. It has significant international presence with a network of 72 offices in 25 countries, six subsidiaries, and four representative offices. Among the Bank of Barodas 43 overseas branches are ones in the 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 nine branches. The Bank of Baroda maintains representative offices in Malaysia, China, Thailand, and Australia. It plans to upgrade its offices in China and Malaysia shortly to a branch and joint-venture, respectively.

The Bank of Baroda has received permission or in principle approval from host country regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish joint ventures. The bank has received Reserve Bank of India approval to open offices in The Maldives, and New Zealand. 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".

Bank of Braoda Branch Locator. History 1908-1959 1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB)ps\pareek. 1910: BoB established its first branch in Ahmedabad. 1953: BoB established a branch in Mombasa and another in Kampala.

1954: BoB opened a branch in Nairobi.

1956: BoB opened a branch in Dar-es-Salaam. 1957: BoB established a branch in London. 1959: BoB acquired Hind Bank. 1960s 1961: BoB merged in New Citizen Bank of India. This merger helped it increase its branch 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 1972: BoB acquired The Bank of Indias operations in Uganda. 1974: BoB opened a branch each in Dubai and Abu Dhabi. 1975: BoB acquired the majority shareholding and management control of Bareilly Corporation Bank (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 a branch in New York and another in the Seychelles. 1979: BoB opened a branch in Nassau, the Bahamas. 1977: BoB Opened a branch in Imphal 1980s 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.

1990s 1990: 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 after 1980. 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 of Baroda (Hong Kong), a restricted license bank. BoB also acquired Punjab Cooperative Bank in a rescue. BoB also incorporate wholly owned subsidiary BOB Capital Markets Ltd.for Broking Business. 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.

2000s

2000: BoB established Bank of Baroda (Botswana).

2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank of Indias request. BSB was established 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 had taken over Lucknow Bank in 1968. The acquisition of BSB brought BOB 105 new branches. 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, China. 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 counties where the bank operates. BoB also opened a representative office in Thailand. 2006: BoB established an Offshrore Banking Unit (OBU) in Singapore. 2007: In its centenary year, BoBs total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people. 2008: BoB opened a branch in Guangzhou, China (02/08/2008) and in Kenton, Harrow United Kingdom. 2008: BoB opened a joint venture life insurance company with Andhra Bank and Legal and General (UK) called IndiaFirst Life Insurance Company 2009: The Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand (2009/09/01) 2010s 2010: Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned 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 of Indians. Andhra Bank will hold a 25% stake in the joint-venture, BoB will own 40% and IOB the

Subsidiaries 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, corporate restructuring, Business valuation, mergers & acquisition, project appraisal and loan syndication. Bank of Baroda financials 2011 Sales Rs. 24,695 crores Profits Rs. 4,241 crores Assets Rs. 3,58,397 croreS

CSR

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 to the 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 imparting training 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 a boost to the local economy. 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).

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 [2] Mobile Banking model using Mobile 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.

ASSETS

Asset Quality 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. Timely response to early warning signals resulted in Cash Recovery of Rs 455.49 crore. Your Bank could upgrade accounts to the tune of Rs 189.17 crore to standard category. Moreover, your Bank recovered Rs 272.66 crore from the prudentially written off accounts.

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

Return on Average Assets Your Banks Return on Average Assets sharply improved from 1.21% in 2009-10 to 1.33% on the back of sustained gains in core earnings and operating efficiency.

Book Value per Share 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). Earnings Per Share 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).

FUNCTION

ion 6 of Banking Regulation Act, 1949 reads as follows :"Forms of business in which banking companies may engage 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 :-

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, collecting and dealing in bills of exchange, hundies, promissory notes, coupons, drafts, bill of lading, railway receipts, 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 of foreign 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 forms of securities on behalf of constituents or others; the negotiating of loans and advances; the receiving 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;
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 of goods, giving of receipts and discharges and otherwise acting as an attorney on behalf of customers, but excluding the business of a [Managing Agent or Secretary and Treasurer] of a company; c. Contracting for public and private loans and negotiating and issuing the same; 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;

e. Carrying on and transacting every kind of guarantee and indemnity business; 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; 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; h. Undertaking and Executing trusts. i. Undertaking the administration of estates as Executor, Trustee or otherwise; 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. k. The acquisition, construction, maintenance and alteration of any building or works necessary or convenient for the purposes of the company; 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; 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

Human Resources (HR)

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 motivated employee 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. 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.

Acknowledgement

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 of India, RBI, SEBI, other regulatory authorities, various financial institutions, banks and correspondents in India and abroad.

We also place on record our appreciation for the unstinted trust and support of our customers, shareholders, investors and vendors.
As in the past, our performance during 2010-11 was driven by the dedication and commitment of our employees. On your behalf as well as on behalf of the Board of Directors, I salute the employees of the Bank on another impressive performance for the year 2010-11. Before I conclude, I would like to thank all of you for your presence and interest in the Bank.

THANK YOU

PRESENTED BY
ABDUSSAMAD CHANDIWALA (18) SAURABH APTE (06) DEV JAISING (44) RAHUL SAROGI ( AMITESH (40) VISHAL (01)