"Your Directors have pleasure in presenting the One Hundred and Fourth Annual Report of Your Bank with the audited Balance Sheet, Profit & Loss Account and the Report on Business and Operations for the year ended March 31, 2013 (FY13)."
- Total Business (Deposit+Advances) increased to Rs 8,02,069 crore reflecting a growth of 19.3% (y-o-y).
- Gross Profit and Net Profit were Rs 8,999.15 crore and Rs 4,480.72 crore respectively. Net Profit registered a growth of -10.5% over previous year.
- Credit-Deposit Ratio stood at 82.03% as against 86.86% last year.
- Retail Credit posted a growth of 6.7% constituting 16.6% of your Bank’s Gross Domestic Credit in FY13.
- MSME Credit posted a growth of 30.3% constituting 19.7% Gross Domestic Credit in FY13.
- Net Interest Margin (NIM) as per cent of interest earning assets in global operations was at the level of 2.66% and in domestic operations at 3.11% during FY13.
- Net NPAs to Net Advances stood at 1.28% this year against 0.54% last year.
- Capital Adequacy Ratio (CAR) as per Basel II stood at 13.30%.
- Net Worth improved to Rs 30,714.19 crore registering a rise of 17.2%.
- Book Value improved from Rs 637.37 to Rs 729.11 on year.
- Business per Employee moved up from Rs 1,466 lakh to Rs 1,689 lakh on year.
Key Financial Ratios
Return on Average Assets (ROAA) (%)
Average Cost of Funds (%)
Average Yield (%)
Average Interest Earning Assets (Rs crore)
Average Interest Bearing Liabilities (Rs crore)
Net Interest Margin (%)
Cost-Income Ratio (%)
Book Value per Share (Rs)
The Segment Results for the year FY13 reveal that the
contribution of Treasury Operations was Rs 1,070.13 crore,
that of Corporate/Wholesale Banking was minus Rs 103.95 crore, that of Retail Banking was Rs 3,085.71 crore, and of
Other Banking Operations was Rs 2,221.71 crore. Your Bank
earned a Profit after Tax (PAT) of Rs 4,480.72 crore after
deducting Rs 1,442.37 crore of unallocated expenditure and
Rs 350.51 crore towards provision for tax.
Your Bank’s Directors have proposed a dividend of Rs 21.50
per share (on the face value of Rs 10/-per share) for the year ended March 31st, 2013. The total outgo in the form of dividend, including taxes, will be Rs 1,059.62 crore.
Capital Adequacy Ratio (CAR)
Your Bank’s Capital Adequacy Ratio (CAR) was comfortable at 13.30% under Basel II as on 31st March 2013.
Your Bank’s Net Worth as at 31st March 2013 was Rs 30,714.19
crore comprising paid-up equity capital of Rs 422.52 crore and reserves (excluding revaluation reserves) of Rs 30,291.67
crore. An amount of Rs 3,421.10 crore was transferred to
reserves from the profits earned.
Provisions towards Retirement and Other Benefits
During the year FY13, your Bank made provision towards
contribution to gratuity (Rs 133.00 crore), pension funds
(Rs 683.96 crore), leave encashment (Rs 204.38 crore) and
additional retirement benefits (Rs 184.29 crore) on actuarial
basis. Total provisions under these four categories amounted
to Rs 1,205.63 crore during the year FY13, against Rs 991.94
crore during FY12. Total corpus available with your Bank at the
end of March 2013 under these heads was: Rs 1,506.13 crore (gratuity), Rs 6,770.08 crore (pension funds), Rs 709.73
crore (leave encashment), and Rs 592.45 crore (additional
Management Discussion and Analysis
Economic Scene in FY13 and Outlook for FY14
The projection of India’s real GDP growth for FY13 by the
Central Statistical Organisation (CSO) at 5.0% is the lowest
growth registered in this decade and even weaker than the
growth posted during the first year of global financial crisis.
The weakening of Indian economy during FY13 was broad
based and primarily driven by sub-optimal monsoon rains,
stagnant infrastructure, declining exports, subdued corporate
investments and weak consumption demand. Due to sluggish
global growth, the hitherto resilient services sector also
weakened considerably during FY13.
So far as the agriculture was concerned, its modest growth at
1.8% was mainly supported by the Rabi (winter) crop, as the
delayed monsoon affected the Kharif (summer) output.
Industrial growth (including manufacturing, mining & quarrying,
electricity, gas, water supply & construction) too declined
significantly to 3.1% during FY13. A slew of factors responsible
for this weak performance were poor global demand, weak
supply linkages, high input costs, sluggish investment activity,
regulatory and environmental bottlenecks, and lack of reliable
power supply. Furthermore, the slowdown in consumption
demand affected the growth of industrial sector, in general
and of motor vehicles, food products and apparel industries,
Weaknesses in domestic industrial activity and fragile global
environment dragged down the services sector growth to 6.6%
While the overall growth slipped rather rapidly, the inflation,
however, remained rather sticky during the year suggesting a
stagflationary state of the economy. Though both the WPI and
CPI based inflation rates slipped from their peak levels, they
remained way above the RBI’s comfort zone.
However, the WPI-based inflation consistently eased since
October, 2012. From a high of 8.06% in Sept, 2012 it fell
to 5.96% in Mar, 2013. With rising demand deficit in the
manufacturing sector, the core inflation too declined steadily
from 5.56% in Aug, 2012 to 3.48% in Mar, 2013. In contrast,
the retail (CPI-based) inflation stayed at 10.39% in Mar, 2013.
In view of the sharp deceleration in growth, the government
has been introducing several corrective measures and reforms
since mid-Sept, 2012 to help revive the economy. The reform
measures pertained to Fiscal Sector (upward adjustment in
the administered prices of fuels to curb energy subsidies,
expenditure control, medium-term fiscal consolidation plan,
launching of direct cash transfer programme, etc); to Balance
of Payments sector (Liberalisation of FDI in multi-brand retail,
domestic airlines, power exchanges, insurance & pension
companies, etc., liberalization of ECBs & a reduction in the
withholding tax on interest payments from 20.0% to 5.0%
for three years, increase in import duty on gold from 4.0%
to 6.0% and hike in the limit of foreign holdings of domestic government & non-infrastructure corporate bonds, etc.); to
Investment (Creation of Cabinet Committee on Investment to
fast track major infrastructure and other projects, deferment
in the implementation of GAAR by two years to Apr 1, 2016);
to Financial Sector (Encouragement to Mutual Fund industry
outside of top 15 cities by allowing higher commissions
and passing of Banking Bill raising voting caps & allowing
new banking licenses to be issued while strengthening the
RBI’s role). Furthermore, in the Union Budget for FY14, the
government was successful in containing the fiscal deficit as a
percentage of GDP at 5.2% and set a target of 4.8% for FY14.
India’s situation became more vulnerable on the external
front during FY13. The widening of the Current Account
Deficit (CAD) to a historically high level of 6.7% in Q3 of FY13
heightened concerns about the sustainability and financing of
CAD. Worsening trade deficit and slower growth in services
exports were the major factors behind the sharp rise in CAD.
Weak external demand, which affected merchandise exports
adversely, combined with continued high imports of POL and
gold, resulted in deterioration of the trade balance. During
FY13, India’s merchandise exports contracted by 1.76% to
US$ 300.6 billion, while imports rose by 0.44% to US$ 491.48
billion leaving a huge trade deficit of US$ 190.88 billion in FY13.
According to the commodity-wise data released by the DGCI&S,
merchandise export decline was mainly observed in items like
engineering goods, petroleum products, textiles and iron ore.
Wider trade and current account deficits have a tendency
to weaken the currency, raising domestic prices of imported
commodities, further fuelling India’s already high inflation rate.
Thanks to the decent capital inflows during FY13, India’s rupee
depreciated by 6.7% against the greenback during FY13 despite
a record high level of current account deficit. During the year
under review, India received US$ 18 billion in the form of FDI
(net term), US$ 24 billion in Portfolio Inflows (net terms), US$
30 billion in the form of External Commercial Borrowings &
Short-term Loans and US$ 24 billion as the total banking capital.
Going forward into FY14, as per the projections of the Economic
Advisory Council to Prime Minister, India’s economic growth is
expected to rise to 6.4% in FY14 from 5.0% in the previous year
on the back of recently introduced structural measures and an
expected normal monsoon. Moreover, steady easing of headline
inflation (WPI-based) will provide more space for monetary
policy to support growth. While the government has shown its
determination to contain the fiscal deficit, the current account
deficit remains a source of concern. However, the nation can
manage it by taking actions that are necessary to encourage
capital flows and by further streamlining the procedures.
Performance of Indian Banking Sector in FY13 and Outlook for FY14
During FY13, both the deposit and lending growth of the
banking industry decelerated significantly on the back of overall
economic slowdown and elevated inflationary pressures. On
an average, the growth differential between deposit and credit kept hovering between 250 and 300 bps with deposit growth
outpacing the credit growth. This kept liquidity persistently tight
in the banking industry.
The cost of deposits and other funds remained high throughout
the year on account of the various monetary tightening
measures undertaken by the Reserve Bank of India (RBI).
People preferred to park their funds in higher yielding fixed
deposits rather than current or savings account (CASA). As a
result, CASA accretion slowed for most banks which led to a
high cost of funds for banks.
A broad-based industrial slowdown adversely impacted the
asset quality of banks, especially of the state-owned banks as
they were the ones who primarily supported productive sectors
post the global crisis of FY09. Slowing loan growth weighed
on the NIMs (net interest margins) of the banking industry.
Low NIMs combined with higher credit costs (provisioning
requirements) including the ones on restructured loans
depressed the earnings of several banks during FY13.
A sharp drop in new project sanctions during FY12 and FY13 will
be felt on the loan demand during FY14, as current sanctions
exhaust. According to Standard & Poor’s (S&P) Ratings Agency,
credit growth for Indian banks is likely to remain muted at 15.0%
in FY14 due to several economic and political uncertainties.
While the revival of power, roads, metals and mining sectors
depends most on government action, the revival of construction
and consumer durables is directly related to economic recovery
and increased consumption. However, Indian banking industry’s
core customer deposit base will continue to provide access to
According to S&P, while non-performing assets of banks will
surge to 3.9% of gross loans in FY14, the banks’ return on
assets will remain depressed, at about 0.9%. Moreover, the
Indian banking industry would face a capital shortfall of US$
3-4 billion if it immediately tried to attain common equity Tier-1
ratio of 8.0% to comply with Basel III guidelines, which kicked
in on April 1, 2013.
In order to ensure sustainable and consistent growth
performance, your Bank has developed a sound risk
management framework so that the risks assumed by the
Bank are properly assessed and monitored continuously. It
may be noted that the ultimate responsibility for setting up
the risk management framework lies with the Board of the
Bank. It includes setting up risk appetite, framing policies and
effective monitoring. Your Bank’s Board has put in place a
robust Enterprise-wide Risk Management architecture so that
the risks remain within the risk appetite defined by the Board.
A brief outline of the mechanism for identifying, evaluating and
managing various risks is as follows.
Liquidity risk implies the “risk” when the Bank either does not
have sufficient financial resources available to meet its financial
obligations, as and when they are due, or can only access
these financial resources at excessive and unsustainable cost.
Liquidity risk may arise from the failure to recognize or address
changes in market conditions that affect the ability to liquidate
assets quickly and with minimal loss in value. In your Bank,
the liquidity risk is measured and monitored by flow approach
on a daily basis against prudential caps fixed for liquidity
gap positions. Moreover, liquidity position is projected every
fortnight, for the subsequent three months on a dynamic basis
through Dynamic Gap Reports. The quality of liquidity is further
tested by working out various ratios under Stock Approach,
wherein a series of prudential caps such as daily call lending,
daily call borrowings, net short-term borrowings and net credit to
customer deposit ratio and prime asset ratio, etc. are tested on
a daily basis. The compliance to Stock Approach caps ensures
that the Bank has managed its liquidity through appropriate
diversification and remained within the sustainable limit.
• Interest rate risk: The risk that aries from changes in yield
curves, credit spreads and volatility in interest rates.
The monitoring of liquidity risk, cost of liquidity, opportunities
and return from deployment, available contingencies, etc is
done by the Asset Liability Committee (ALCO) which comprises
of General Managers and Executive Directors and is headed
by the Chairman and Managing Director. The prudential caps
are monitored by ALCO by way of various regular and special
Credit risk implies potential loss to the Bank on account of either
lack of capacity or unwillingness of a counterparty to meet its
obligations as per the agreed terms. Credit risk is managed in
your Bank through a clearly articulated framework that sets out
policies, procedures and reporting. In line with international best
practices, there is a clear segregation between risk takers and
policy framers. Furthermore, the Bank has adopted risk-based
delegated lending power where higher discretionary lending
powers have been delegated for low credit risk proposals. Your
Bank also conducts industry studies to assess the risk prevalent
in industries where the Bank has sizable exposure and also
for identification of sunrise industries. The industry reports
are communicated to the Bank’s field-level people to consider
the same while lending to these industries. However, to avoid
imprudent concentration, your Bank has put in place prudential
caps across industries, sectors and borrowers.
Your Bank has adopted a robust two dimensional credit rating
system from 2007 onwards and has now built up six-year’s data
on credit rating and borrowers’ rating migration. This preparation
has enabled your Bank to make an application to the RBI to
migrate to Foundation Internal rating based (FIRB) approach
of credit risk under Basel II rules. The FIRB implementation will
also prepare your Bank to drive its business in more systematic
and sophisticated manner in terms of risk-based pricing,
portfolio construction and fixation of risk appetite.
Market Risk implies the “risk” of loss of earnings or economic
value due to adverse changes in market rates or prices. The
sources of market risk may be enumerated as under.
• Currency exchange rate risk: The risk that arises from
changes in exchange rates and their volatility.
• Equity price risk: The risk that arises from changes in
the prices of equities, equity indices, equity baskets and
volatility in stock market.
The market risk may also arise from changes in commodity
prices and volatility. However, your Bank does not have any
exposure to commodity related markets.
Your Bank has clearly articulated policies to control and monitor
its treasury functions. These policies comprise management
practices, procedures, prudential risk limits, review mechanisms
and reporting systems. These policies are reviewed regularly in
line with changes in financial and market conditions.
The Interest rate risk in your Bank is measured through Interest
Rate Sensitivity Gap Reports and Earning at Risk. Furthermore,
your Bank calculates duration, modified duration, Value at Risk
for its investment portfolio consisting of fixed income securities,
equities and forex positions on monthly basis. It monitors the
short-term Interest rate risk from the NII (Net Interest Income)
perspective and long-term interest rate risk from the EVE
(Economic Value of Equity) perspective. The Value at Risk for
the treasury positions is calculated for ten days holding period,
at 99.0% confidence level. Moreover, the stress testing of fixed
interest investment portfolio through sensitivity analysis and
equities through scenario analysis is regularly conducted in
Based on the RBI directions, your Bank has also been estimating
the “Economic Value of Equity Impact” on a quarterly basis.
Operational risk is the risk of loss on account of inadequate
or failed internal processes, people and systems or external
factors and also includes a legal risk. Operational Risk
Management Committee (ORMC) of your Bank shoulders the
responsibility of monitoring and controlling the operational
risk by way of prescribing/amending processes, imposing
controls and defining roles and responsibilities. Your Bank has
a robust inspection and audit system to ensure that its internal
guidelines, policies and procedures are complied with.
Your Bank is in the process of implementing a sophisticated
system to capture, measure, monitor and manage its
operational risk exposures by installing an enterprise-level
automated web based solution of international standard. The
solution is expected to be operational before the end of the
current year. This will enable your Bank to meet the quantitative
and qualitative requirements of the Standardized Approach
(TSA) and Advanced Measurement Approach (AMA) of Basel
II rules of Operational Risk Capital Measurement.
Bank’s Preparedness for Basel III
The Reserve Bank of India (RBI) has issued final Guidelines on
Basel III on May 2, 2012. The international regulations on new
liquidity standards – Liquidity Coverage Ratio and Net Stable
Funding Ratio are currently subject to an observation period/
revision by the BCBS [Basel Committee on Banking supervision]
with a view to addressing any unintended consequences that
the standard may have for financial market, credit extension
and economic growth. Hence, the framework has been put on
hold for implementation.
A comparison of minimum capital requirement, under Basel- II vis-à-vis Basel- III, on full implementation of capital rules is
Basel - II
Basel - III
Common Equity Capital
Tier I Capital
Capital Conservation Buffer (a buffer of capital that can be used to absorb losses during periods of financial and economic stress.) (in the form of Common Equity)
The RBI guidelines on capital rules have become effective
from 1st April 2013. Apart from meeting the new capital rules,
a risk insensitive Leverage Ratio will also be required to be
implemented from 30th June 2013. With the preponderance
of common equity in the tier I capital as well as total capital
of the Bank, your Bank does not envisage any difficulty in
implementing Basel III capital rules.
Credit Monitoring Function
Credit monitoring on a continuous basis is one of the most
important tools for ensuring the quality of advance assets. Your
Bank has the system of monthly monitoring of the advance
accounts at various levels to prevent asset quality slippages
and to take timely corrective steps to improve the quality of
A separate department for Credit Monitoring functions at the
Corporate level, headed by a General Manager, and one at the
Regional/Zonal level, has been functioning in your Bank since
September 2008. A Slippage Prevention Task Force was formed
at all Zonal/Regional offices based on the Bank’s Domestic
Loan Policy. This Task Force was activated for the purpose of
arresting slippages and for initiating necessary restructuring
in potentially sick accounts. This was achieved at an early
stage in conformity with the laid down norms and guidelines.
Your Bank has placed a special focus on sharpening the credit
monitoring process for improving its asset quality, identifying
areas of concern and branches requiring special attention,
working out strategies and ensuring their implementation in a
time bound manner.
The primary objectives of your Bank’s Credit Monitoring Department at the Corporate level are fixed as under:
- Identification of weakness/Potential default/incipient sickness in the account at an early stage;
- Initiation of suitable and timely corrective actions for preventing impairment in credit quality, whenever signals are noticed in any account, e.g. decline in credit rating, delay in meeting liabilities in LC/Guarantee and delay in servicing of interest/ installments etc;
- Prevention of slippage in the Asset Classification and relegation in Credit Ratings through a vigorous follow up;
- Identification of suitable cases for restructuring/
rescheduling/rephasement to explore the possiblility of
further financing in deserving and genuine cases; Liaison
with CDR Cell and functional units is undertaken on
- Taking necessary steps/regular follow up, for review of accounts and compliance of terms and conditions, thereby improving the quality of your Bank’s credit portfolio;
- Endeavoring for upward migration of Credit Ratings.
- Monitoring progress of accounts under BIFR.
Prevention of Slippages
As a part of an ongoing business strategy to improve upon the
quality of assets, your Bank reaffirmed the need to look into
the advances portfolio on a continuous basis, industry-wise as
well as borrower-wise, to analyze the present position and the
problems foreseen in near future and to identify weaknesses/
potential default/incipient sickness in the advance accounts at
an early stage so as to initiate suitable and timely corrective
measures for preventing impairment in credit quality.
Your Bank launched an online web-based software developed
by its IT Department for MMRs (Monthly Monitoring Reports) in
respect of advance accounts with Fund-based plus non-fundbased
exposure of Rs 10 crore and above in January 2013.
This will enable speedy and effective monitoring of advances
and ensure timely action in respect of stressed accounts.
Your Bank also initiated follow up actions for ensuring
expeditious review of accounts, compliance of terms and
conditions, up-gradation in credit rating etc. in high value
advance accounts for improving the asset quality of its credit
During FY13, your Bank undertook restructuring of various
advances accounts in its global operations as per the table
Restructuring of Advance Accounts (Global) Done during FY 2012-13
| (Rs crore)
Standard Advances Restructured
No. of Borrowers
||Sacrifice [diminution in fair value]
Sub-standard Advances Restructured
No. of Borrowers
||Sacrifice [diminution in fair value]
Doubtful Advances Restructured
No. of Borrowers
||Sacrifice [diminution in fair value]
No. of Borrowers
||Sacrifice [diminution in fair value]
Economic Intelligence Unit
At the Corporate Office of your Bank, a specialized Economic
Intelligence Unit (EIU) supports the Top Management in
several critical areas like Macroeconomic Forecasting,
Business Strategy Formulation, Investor Relations, Asset-
Liability Management and in discussions/deliberations with
the Regulators (both domestic & international) and Rating
Agencies. The Unit regularly provides the Top Management
as well as various operational units a periodic outlook on
key macro variables like industrial and infrastructural growth,
inflation, interest rates, stocks’ movement, credit deployment
& resource mobilization of Banking industry, liquidity conditions
and exchange rates.
By providing better understanding of macroeconomic aspects,
corporate sector health and banking sector policies, the EIU
of Bank of Baroda supports Bank’s efforts in tapping business
opportunities and swiftly responding to market dynamics.
The EIU brings out a weekly e-publication on macro-economic,
policy and regulatory developments to share its perspective
with bankers, investors, regulators and other industry
leaders. The division works as an intellectual arm of your
Bank in comprehending developments that eventually aid the
development of rightly aligned strategies.
Internal Control Systems
Your Bank has a well established Central Inspection & Audit
Division (CIAD) that examines the adherence to systems,
policies and procedures of the Bank. The guidelines received
on various issues of internal control from RBI, Government
of India, Bank’s Board and the Audit Committee of the Board
have become part of the Internal Control System for better risk
With the size of business increasing year after year, the CIAD is
constantly aiming for curbing the inherent risks through effective
control mechanism so as to safeguard the Banks’ interest.
The CIAD operates through thirteen Zonal Inspection Centres
to carry out the inspection of branches/offices as per the
periodicity decided by the Audit Committee of the Board and
examines adherence to such systems of internal control and
The Audit Committee of the Board oversees the Internal Audit
function of your Bank. The committee guides in developing
effective internal audit, concurrent audit, IS Audit and all other
inspection & audit functions for improving the efficiency of
systemic controls. The committee monitors the functioning
of the Audit Committee of Executives and inspection/audit
department in the Bank.
Audit Committee of Executives has been established and is
one layer above the CIAD and it monitors the entire inspection
system in the Bank. The Audit Committee of Executives has
worked as a strong deterrent and preventive mechanism
for frauds as it focuses on audit system in the Bank and its
effectiveness in getting the desired results.
All the branches of your Bank are covered under the Risk Based
Internal Audit (RBIA). A total of 3,046 branches were inspected
during FY13. Out of these, 2,206 branches (72.42%) were in Low Risk, 735 branches (24.13%) were in Medium Risk and
105 branches (3.45%) were in High Risk categories.
The I.S. Audit Cell working under Inspection Division, is based
in Mumbai and performing the function of Offsite Surveillance.
In line with the guidelines issued by the Department of Financial Services, Ministry of Finance, your Bank has implemented the
• Audit Committee of Executives has been established to
oversee the work of Central Inspection & Audit Division and
Zonal Audit Committees with effect from March 2013. This
is expected to strengthen further the level of compliance
of systems, procedures and internal guidelines.
• The Concurrent Audit Policy, Manual and Scoring Sheets
duly approved by Audit Committee of the Board and Risk
Based Concurrent Audit will be implemented from the next
The coverage of Concurrent Audit has been increased to
834 branches in 2013-14 from 709 branches in FY13 and will
cover 64.36% of the Bank’s total deposits, 80.87% of its total
advances and 71.13% of its total business as on 31.12.2012.
As per the observation made by the RBI during Annual Financial
Inspection: 2011-12, Credit Audit will now be nurtured as a
specialized function within CIAD and the new structure will start
functioning from July 2013. The Credit Audits were conducted
in respect of 3,504 accounts covering fund-based and nonfund-
based business of Rs 1,97,048 crore ensuring increased
level of compliance for large loans.
To summarise, your Bank’s Central Inspection & Audit Division
has been effectively monitoring the compliance of systems &
procedures laid down by its own Board, the Regulator and the
Government of India.
Operations and Services
As always, efficient customer service and customer satisfaction
are the primary objectives of your Bank in its day to day
operations. Your Bank is highly responsive to the needs and
satisfaction of its customers, and is committed to the belief
that all technology, processes, products and skills of its people
must be leveraged for delivering superior banking experience
to its customers.
Recently, your Bank has taken several measures to improve
the customer service at its branches and at the same time,
strengthened the customer complaint redressal machinery
for fast disposal of customer complaints. Your Bank has
implemented Standardized Public Grievances Redressal
System (SPGRS), a web-based customer complaint redressal
Some of the other major initiatives in improving the customer
service during FY13 are as under.
1. Online Fixed Deposits- The Bank’s customers can now
make online Fixed Deposits through the system called
2. SMS alert facility
a. Financial transactions: In respect of transactions
where the amount is greater than or equal to Rs 5,000
has been enabled to all resident savings and current
deposit holders and overdraft customers of the Bank
whose mobile numbers are registered in the Bank’s
record (CBS system).
b. Non financial transactions:
i. For renewal of term deposits: 30 days before due
ii. Communicating to the potentially dormant account
holders (i.e. before the account becomes dormant)
to operate the accounts.
iii. To advise dormant account holders to activate
3. Intra-Bank Deposit Account Portability: This means
savings, current and time deposits accounts in your Bank
may be transferred from one branch to another branch
without changing the account number.
4. Activation of inoperative Accounts: A campaign was
launched for activation of Inoperative Accounts during the
period 01.09.2012 to 30.12.2012. Your Bank’s branches
were advised to put their all out efforts for activation of
inoperative/dormant accounts and to prevent potential
dormant accounts from becoming dormant/ inoperative.
5. Campaign for Mobile Number/Email ID Registration: A
campaign was launched with some incentives to staff from
01.01.2013 to 31.03.2013 to register mobile numbers and
email-ids in existing as well as new accounts.
6. Details of Principal Nodal Officer in Pass Book: For
convenience of customers to lodge their grievances/
complaints, the process has been initiated to incorporate
the details of Principal Nodal Officer and Banking
Ombudsman in the passbook at the time of passbook
printing. In the meantime, the branches have been advised
to affix these details in all passbooks by a rubber stamp.
7. Display of gross interest on Term Deposit: This means
monthly or quarterly interest paid or tax deducted at source,
etc., are displayed separately in the customer’s saving bank
(SB) account statement.
8. Compensation for ATM failed Transactions: Branches
were advised to resolve the complaints lodged on the
ATM failed transactions, cash not dispensed, etc., and the
account is credited within seven working days from the date
of lodging the complaint.
If not resolved, compensation of Rs 100 per day will be
paid from the eighth day till the amount is re-credited
automatically by the Bank.
9. NEFT/RTGS: To popularize remittance through NEFT
[National Electronic Funds Transfer] and RTGS [Real time
Gross settlement], the remittance request for fund transfer
up to Rs 50,000 is accepted from the walk-in customers.
Moreover, the following information is displayed on the
1. Notice for CTS 2010 (Cheque Truncation System)
Standards Cheque Book as per the direction of the RBI.
2. Checklist along with all relevant forms for deceased
account claim settlement.
3. Display of the list of inoperative/dormant/unclaimed
deposit accounts on the Banks’ website (only name
and address of the customers more than 10 years are
displayed as per the advice of the RBI).
Efforts to Improve Customer Service at Branches
The feedback on quality of customer service at branches
is obtained through the Branch Level Customer Service
Committee meetings that are held every month in which
customers from various cross sections of the society are invited
including senior citizens and pensioners. The suggestions/views
generated during the meetings are collated and an appropriate
follow-up action is taken to examine the feasibility to implement
the suggestions for improving the service quality.
Your Bank is focused towards providing excellent customer
service through all delivery channels and has been making
continuous efforts for enhancing the level of customers’
satisfaction by leveraging technology to provide e-products and
alternative delivery channels e.g. ATM/Debit cards, POS, Internet
Banking, Mobile Banking, etc., best suited to the diverse needs
of different customers. The varied interests and expectations
of customers are taken care of by improving upon various
processes and procedures.
Your Bank is a member of the Banking Codes and Standards
Board of India (BCSBI) and has adopted the “Code of
Commitment to the Customers” prescribed by the BCSBI
in August 2009. It has also adopted the “Code of Bank’s
Commitment to MICRO and Small Enterprises”. These have
been placed on your Bank’s website and also made available
to customers at the branches.
While announcing the “Annual Monetary and Credit Policy for
the year FY11”, the Governor, RBI, had proposed that banks
should devote exclusive time in their Board Meetings once in
every six months to review and deliberate on issues concerning
customer service/customer care. To comply with this, two such
six monthly reviews were undertaken by your Bank’s Board
for the sub-periods January-June 2012 and July-December
2012, in meetings dated 4th August 2012 and 3rd March 2013,
Customer Service Committee of the Board
Your Bank has a Sub-Committee of Board for Customer Service which is headed by your Bank’s Chairman and Managing Director with the following members as on 31st March 2013.
Shri S. S. Mundra
Chairman and Managing Director
Shri P. Srinivas
Shri Sudhir Kumar Jain
Shri Ranjan Dhawan
Shri Maulin Arvind Vaishnav
Shri Satya Dev Tripathi
This Sub-Committee addresses the issues relating to the
formulation of policies and assessment of their compliance which
brings about consistent improvement in the quality of customer
service. It also monitors the status of the number of deceased
claims pending for settlement beyond 15 days pertaining to
depositors/locker hirers/depositors of safe custody articles, and
reviews the status of implementation of awards passed by the
Standing Committee on Customer Service
Your Bank has also set up a Standing Committee on
Procedures and Performance Audit on Customer Services,
comprising of three eminent public personalities as members
along with all the three Executive Directors and four General
Managers of your Bank. This Committee oversees timely and
effective compliance of the RBI instructions on Customer
Service and also reviews the practices and procedures
prevalent in your Bank and takes necessary corrective steps
on an ongoing basis.
The suggestions emanating in the Branch Level Customer
Service Committee meetings are obtained by your Bank’s Head
Office on quarterly basis from Regional Offices and placed
before the Standing Committee on Procedure and Performance
Audit on Customer Services. The feedback of the committee
meetings is then put up to the Customer Service Committee
of the Board of Directors.
Customer-Centric Initiatives and Redressal of Complaints
- Your Bank has put in place a Customer Grievance
Redressal Policy, approved by the Board, and a well
structured Customer Grievance Redressal Mechanism.
The General Manager in charge of Operations & Services
is designated as Nodal Officer for customer complaints
regarding your Bank. At Zonal and Regional levels, Zonal
Heads and Regional Heads are designated as Nodal
Officers for their respective Zones and Regions. The names
of all Nodal Officers along with their contact numbers are
displayed in all the branches.
- A note on Review of Customer Services & Grievances
Redressal is placed before the Board of Directors
every quarter giving position of customers’ complaints
received at your Bank’s Regional Offices and Head office.
Subsequently, relevant follow up measures with important
initiatives are taken by your Bank for improving the service
quality to customers.
- To minimize customer complaints and to ensure hassle
free customer service, a regular analysis is done on the
complaints received from the customers and a suitable
action is taken on time so that there is no repetition of such
complaints in future.
- Your Bank has Board-approved policies on customer
services and the same are placed on your Bank’s website.
To facilitate customers, as directed by Ministry of Finance
(MOF), Govt. of India, vide their letter No. DO:NO:1/3/2012-BOIII
dated 11th June, 2012, to bring uniformity in all banks and for
maintaining centralized data base of all complaints, your Bank
has implemented Standardized Public Grievance Redress
System to enable the complainants to lodge their grievances
in a simple and easy manner through multiple channels.
Furthermore, to facilitate this, an icon “online complaints
(SPGRS)” has been provided on the home page of your Bank’s
Features of SPGRS
- An icon “online complaints (SPGRS)” has been provided
on the home page of your Bank’s website.
- Immediately upon registering the grievances/complaints,
an automatic tracker id is generated and the same is
conveyed to the complainant on his e-mail id. On the basis
of this tracker-id, a customer is able to know the current
status of his complaint/grievance.
- The same tracker id is also sent to the concerned branch
through e-mail for speedy disposal of the grievances.
- An auto escalating matrix to next higher authority is also
provided in redressing the grievances depending upon the
number of days taken to resolve the complaint.
- An auto generated text message is sent to the complainant
at the time of closure of the grievances.
- Upon implementation of SPGRS, the “turnaround time” for
the redressal of grievances/complaints lodged has been
reduced drastically to an average of five to seven days.
- Your Bank has installed KIOSK, a dedicated computer
system at all Zonal Offices along with the Head Office, to
enable the customers to lodge their grievances/complaints
Based on the feedback and suggestions from the grass root
level customer committees and various studies/surveys, a slew
of customer centric initiatives and measures were taken by
your Bank during the year under review to improve customer
service at its branches.
Systems for KYC-AML-CFT
Know Your Customer (KYC) norms/Anti-Money Laundering
(AML) Standards/Combating of Financing of Terrorism
(CFT) measures and Obligation of Bank under PMLA, 2002
Your Bank has a Board-approved KYC-AML-CFT Policy. The
said Policy is the foundation on which the Bank’s implementation
of KYC norms, AML standards, CFT measures and obligation
of the Bank under Prevention of Money Laundering Act (PMLA)
2002 is based.
The major highlights of KYC-AML-CFT implementation
across the Bank are as under.
- The Bank generates Cash Transaction Reports (CTRs) electronically for submission to Financial Intelligence
Unit (FIU), through the electronic medium.
- The “AML Solution” for generating system-based alerts
has been installed and implemented.
- There is a system-based detection and submission
of Suspicious Transaction Reports (STRs) to the
Financial Intelligence Unit (FIU).
- System-based Risk Categorization (from AML
Measure) of Bank’s customers’ accounts has been
done every half year.
- The Bank files Counterfeit Currency Reports (CCRs)
to FIU-IND, New Delhi.
- The Bank files Non Profit Organizations Transaction
Reports (NTRs) to FIU-IND.
The full KYC compliance entails Staff Education as
well as Customer Education for which the following
measures are taken by the Bank.
- A comprehensive list of KYC documents is uploaded
on the Bank’s website (www.bankofbaroda.com) for
the benefit of customers.
- A KYC-AML page is created at the Bank’s INTRANET
for posting reference material on KYC-AML-CFT
- Regular training sessions are conducted on the
KYC-AML-CFT guidelines at the Bank’s training
- Training is being arranged for the Bank’s senior officials/
executives at RBI, IBA (Indian Banks’ Association) and
National Institute of Bank Management (NIBM).
- Sustained efforts are being made to create expertise
at the Banks’ Head Office for the Corporate Oversight
and also for the KYC Audit of branches.
Back Office Operations
Regional Back Offices and City Back Offices
Two types of Back Offices have been conceptualized and rolled
out by your Bank – Regional Back Offices (RBO) and City Back
Offices (CBO). The RBO deals with centralized processing of
account opening forms (AOF) and centralized processing of
issuance of Personalized Cheque Books (PCB). Your Bank has
ten RBOs - one each at Baroda, Bhopal, Delhi, Coimbatore,
Mumbai, Lucknow, Jaipur, Kolkata, Pune and Jamshedpur. The
RBOs are opening CASA accounts for 2,915 branches. The
Centralised account opening activities of seven RBOs have
ensured coverage of 100.0% branches of eight zones of your
Bank and the process has been initiated to roll out two more
RBOs to cover all the remaining branches of the Bank under
the RBO process for account opening and maintenance.
The Personalised Cheque Book (PCB) issuance through
Regional Back Offices provides customers of the 3,908
branches of your Bank with this facility. Your Bank has extended
this facility to all the branches in 12 out of its 13 zones. The
remaining branches of the Rajasthan Zone will soon be brought
under the PCB issuance facility to cover customers across
The CBOs deal with centralized upload of clearing transactions
– both inward and outward – as well as government collections
and ECS transactions. Your Bank has 21 CBOs (service
branches) where clearing and ECS are centralized for branches
in each city/centre. The centralization of clearing has also been
introduced in 64 main branches (which handles clearing for local branches). The CBO concept has so far covered 1,372
branches of your Bank. During FY13, your Bank has introduced
fully automated cheque processing system at Mumbai,
Ahmedabad and Surat.
Government Business & Currency Chest
Given below are the new business avenues opened by your
Bank in the domain of Government Business during FY13.
- Your Bank has obtained permission for “Tax Collection”
in the states of Jharkhand, Orissa, Assam, Tripura, West
Bengal, Daman & Diu, Chhattisgarh, MP, Chandigarh,
- Additional 350 branches have been authorized by your
Bank for undertaking PPF/SCSS business.
- Your Bank undertook special campaigns for the mobilization
of PPF accounts with effect from 1st December, 2012 to
31st March, 2013 and total, 22,540 new PPF accounts
were mobilized during the campaign period.
- The Remittance business from Ministry of External Affairs
through their missions/ posts abroad has also been
obtained. The International Business Branch (IBB) located
in New Delhi has been identified as Nodal branch for
settlement of funds in respect of Banking arrangements
under the scheme.
- The Bank implemented physical collection of Custom
Duty at Kennedy Avenue Branch, Amritsar and B M Marg
- In Tamil Nadu, the payment of RTO taxes through e-mode
has been made operational in your Bank.
- Around 15 more branches in Delhi and Himachal Pradesh
of your Bank have been activated for the purpose of
- Your Bank has activated the GBM module for the receipt
and payment of RBI Bonds. All the authorized branches
have now migrated the entire data into the GBM module
and changed the reporting system as per the RBI
- For e-payment of Direct taxes by all the Bank’s branches,
CA118 menu developed in Finacle which provides off line
mode for the remittance of taxes.
- Establishment of CPPC for processing and payment of
pension to the Telecom pensioners.
New Pension Scheme (NPS)
Your Bank has made operational the New Pension Scheme
(NPS) under NPS-Lite. After launching the scheme on
14.09.2012 in your Bank, a total of 20,872 applications were
canvassed up to 31.03.2013 under the scheme.
Cash Management & Currency Chest
1. Your Bank has managed to maintain the Cash Deposits
Ratio (Without ATM cash) at 0.30 or below by constant
monitoring and follow up with the Zones/Regions.
2. Your Bank has identified 30 centers for opening of new
currency chest and has begun the process of obtaining
the sanction from various authorities.
Strategic Plan on Currency Management (2011-14)
As a customer-centric Initiative to improve payment system, your
Bank has identified 30 new centres for opening New Currency
Chests under Strategic Plan on Currency Management 2011-
14, thereby increasing total No. of Currency Chest from 84 at
present to 114.
Name of the Zone
New Currency Chest Proposed over three years (By March 2014)
Bihar Orissa & Jharkhand Zone
Greater Mumbai Zone
North Gujarat Zone
South Gujarat Zone
Maharashtra & Goa Zone
MP & Chhatisgarh Zone
Karnataka & AP Zone
Tamilnadu & Kerala Zone
Eastern UP Zone
||WUP & Uttarakhand Zone
Despite global changes towards automation and other drastic
changes that are taking place in the banking industry, its very
nature remains person oriented. Banking unlike production
organisations demands personalised service hence the quality
of its service largely depends upon the quality and attitude of
It has been the endeavour of the Vigilance department of
your Bank to encourage and enable the operating level staff
as also those at controlling offices to exercise due care and
caution to take preventive and detective measures. This helps
in increasing efficiency and creating an environment of security
for the honest workforce.
Careful distinction is made by your Bank’s Vigilance department
between the cases of gross negligence and the cases where
business decisions have gone awry. Also, periodical monitoring
of individual cases is carried out to ensure that inquiries are
quickly concluded and are perceived as fair by all the concerned
parties. Endeavour is made towards ensuring that penalties,
where necessary, are timely and just.
Vigilance machinery in your Bank is effectively performing
its proactive role in new risk prone areas emerging in
computerised/e-banking environment, in addition to sensitising
all categories of staff members with the various preventive
To bring about greater transparency in procurement and
tendering processes in your Bank, a notice inviting tenders/
details of tenders awarded by the Bank and summary of tenders/
contracts concluded are put on your Bank’s website for widest
Your Bank has introduced a facility for on-line application and
tracking status thereof in respect of Housing loans, Education
loans and Auto loans. Standardized Public Grievance Redress
System (SPGRS) as advised by the Ministry of Finance for
uniform implementation in PSBs is made active with effect
from 11th January, 2013.
It is heartening to note that with the awareness, alertness
and diligence exhibited by the operating staff, 40 fraudulent
attempts by unscrupulous elements were thwarted in your
Bank which saved it from a colossal financial loss.
Given below are the details of your Bank’s major achievements
on business front during the year FY13.
Resource Mobilisation and Asset Expansion
The share of Bank’s Deposits in total resources stood at
86.6% as of 31st March 2013. The Total Deposits grew
from Rs 3,84,871.11 crore to Rs 4,73,883.34 crore, posting
a healthy growth of 23.1% over the previous year. Of this,
Savings Bank Deposits – a critical component of low cost
deposits grew by 13.04% from Rs 74,579.53 crore to Rs
The share of low cost deposits (Current + Savings) or
CASA deposits in Total Deposits was at 25.3% and in
Domestic Deposits at 30.4%.
Your Bank’s Total Advances expanded by 14.2% during FY13
led by 11.0% expansion in Domestic Advances and 21.89%
expansion in Overseas Advances.
Composition of Funds – Global
Particulars (Rs crore)
End March 2012
End March 2013
Global Advances (Net)
Particulars (Rs crore)
End March 2012
End March 2013
Wholesale & Mid Corporate Banking
Your Bank’s Wholesale Banking and Mid Corporate Division
offers an array of loan products and services such as Term
Loans, Short-Term Loans, Demand Loans, Working Capital
Facilities, Trade Finance Products, Bridge Loans, Syndicated
Loans, Infrastructure Loans, Foreign Currency Loans, Loan
Against Future Rent Receivables and many more to its large
and mid corporate clients depending upon their needs. The
product offerings are flexible and suitably structured taking into
account the customers’ risk profile and specific needs.
Over the years, your Bank has made significant progress
in establishing healthy business relations with several
multinationals, domestic business houses and prime public
Your Bank’s corporate customers are segmented as large and
mid corporate. Those with sales turnover above Rs 500 crore
are classified as large corporates and those having annual
sales turnover of between Rs 150 crore to Rs 500 crore are
classified as mid-corporates.
The prospect of any banking industry is closely interlinked with
the growth of the economy to which it belongs. Unfortunately,
Indian economy has recorded the decade’s lowest economic
growth in FY13. The twin deficits viz. fiscal & current account
deficits, high inflation & interest rates, volatile exchange rate,
low private investment in new projects, etc., have thwarted the
growth story of the country.
However, even during this phase, your Bank identified
sectors for credit expansion and created 94 new relationships
through its Fast Track Desk. The Wholesale & Mid Corporate
departments have sanctioned fresh/increased credit facilities to
the tune of Rs 53,565 crore during the year to various sectors
/industries with projects /units spread across the country. It
also took a view for further exposure to sensitive sectors like
Domestic Commercial Real Estate, Power, Roads, Telecom,
Iron & Steel etc.
Total domestic non-food gross advances of your Bank
increased from Rs 2,01,822.71 crore as on 31.03.2012 to Rs
2,23,990.20 crore as on 31.03.2013. Approximately, 37.5% of
the Bank’s total gross domestic credit belonged to wholesale
credit during FY13.
Your Bank set up a new business vertical, i.e., Mid Corporate
Segment in FY13. The objective was to create a specialisation
to accelerate the credit to Mid Corporate borrowers and
substantially increase the number of mid corporate clients
through dedicated branches. In order to have a focused
business approach for catering to the valued Mid– Corporate
business segment, initially 16 Mid Corporate branches were
opened across the country.
Your Bank’s aim is to harness Large Corporate business
through CFS branches and Mid Corporate business through
Mid Corporate Branches thereby maximizing earnings from
both the “On and Off” balance sheet business.
Your Bank’s Wholesale Banking Department also has a fullfledged
‘Project Finance Division’ (PFD). This PFD is well
equipped with professionals from various disciplines who
undertake the TEV (i.e. Technical Evaluation & Viability)
studies for your Bank’s clients.
The Department is also equipped with a Syndication Desk to
syndicate domestic funding requirement of the clients. The
Department earns decent fee-based income by carrying out
TEV studies, vetting of projects, syndication deals, etc.
Your Bank’s Wholesale Banking Department also houses the
“Domestic Foreign Business” Division (DFB). The DFB drives
its business through all Authorized Branches including its MIS
and reporting/managing Export–Import business.
Your Bank has placed thrust on proper due diligence and
screening to raise the bar on the quality of appraisal to
maintain asset quality.
A necessary precondition to achieve the above is rightly skilled
employees or the agile, able and skilled manpower. Keeping
this in view, your Bank continued its thrust on regular grooming
of Credit and Forex Officers and provides specialized training
within the Bank as well as in collaboration with renowned
institutions outside. Your Bank also continued to recruit
specialized officers and lateral recruitment of professionals
like CA/ICWA/CS/MBA as well as the experienced banking
It may be noted that your Bank has adopted a “Committee
Approach for Credit Approval Process” for fast dispensation
of credit proposals. These committees meet as frequently as
possible to reduce the Turn Around Time (TAT).
Retail banking services continued to remain an important
business division for your Bank in FY13. Your Bank is focused
on meeting the financial needs of personal and small business
customers (traders) who are looking for accessible and
affordable banking services.
The performance of your Bank’s Retail banking division during
the year under review is as under.
Growth under Retail Lending
Your Bank’s Retail Loan Book consists of five key products viz.
Home Loan, Auto Loan, Education Loan, Traders Loan and
Mortgage Loan, which constituted 80.4% of the total Retail
Loans at end-Mar, 2013. The other products namely LABOD/
ODBOD constituted 16.7% of the Bank’s total Retail loans.
Besides, the products like Baroda Personal Loan and other
miscellaneous product viz. Doctors Loan, Loan against
government securities, etc., constituted 2.9% of Retail Loans.
Total Retail Loans stood at Rs 38,046 crore as on 31.03.2013
as against the level of Rs 35,668 crore as on 31.03.2012. A
growth of Rs 2,379 crore (6.7%) was registered during FY13
reflecting a slowdown in retail demand on account of economic
slowdown and high fuel prices.
Growth under Five Key Retail Products
Under five key loan products which constituted 80.4% of total
Retail Loans, an absolute growth of Rs 4,412 crore (16.9%)
was posted during FY13.
• Under Home Loans, an absolute growth of Rs 1,911 crore
(13.5%) was registered during FY13.
• Under Auto Loans, an absolute growth of Rs 512 crore
(21.1%) was registered during FY13.
• Under Baroda Traders Loans, an absolute growth of Rs
1,620 crore (29.1%) was registered during FY13.
• Under Baroda Mortgage Loans, an absolute growth of Rs
284 crore (13.0%) was registered during FY13.
• Under Education Loans, an absolute growth of Rs 86
crore (4.6%) was registered during FY13..
NPAs under the Retail Loan
The amount of Non Performing Assets as on 31.03.2013
under your Bank’s Retail Loans Business stood at Rs 669.08
crore (1.76%) as against the level of Rs 681.67 crore (1.99 %)
as on 31.12.2012 and the level of Rs 653.47 crore (1.92%) as
on 30.09.2012. The amount of Non Performing Assets as on
31.03.2012 under Retail Loan was Rs 682.37 crore (1.91%).
Growth under Retail Deposits
Savings Deposit of your Bank stood at Rs 81,995 crore as
on 31.03.2013 reflecting a growth of Rs 9,425 crore (12.98%)
on y-o-y basis.
Retail Term Deposit of your Bank were at Rs 1,37,215 crore
as on 31.03.2013 indicating an annual growth of Rs 16,672
Under Total Retail Deposits, i.e., Retail Term Deposit plus
Savings Deposit, an absolute growth of Rs 26,097 crore
(13.51%) was posted during the year under consideration.
Sale of Gold Coins
Around 77,459 Gold Coins of different denominations
aggregating 696.076 kgs were sold during the year FY13.
Initiatives in Retail Banking during FY13
1. New Products Launched
A Retail Asset product styled as ‘Baroda Education Loan
for Vocational Education & Training Courses’ was
introduced on 1st July 2012 during this year.
Baroda Double Dhamaka Deposit Scheme or a Term
Deposit Product styled as “Baroda Double Dhamaka”
was introduced on 25th February 2013 offering an interest
rate of 9.34% for a period of seven years, six months and
2. Product Modification
• During FY13, your Bank modified Baroda Additional
Assured Advance (AAA) Scheme, a Top-Up Home
Loan Product, by increasing the maximum limit to Rs
25 lakh and reducing the interest rate to Base Rate
• Baroda Nagarik Bachat Khata was modified as
Baroda Small Savings Bank Deposit Scheme and
followings features were added to make it more
acceptable and attractive.
- Minimum initial deposit amount was reduced to
NIL from Rs 50.
- Number of Withdrawals allowed in a month
increased to four from three.
- Number of cheque leaves allowed free in a year
is increased to 50 from the existing ten.
- NIL Charges for non operation/ activation of
inoperative /dormant accounts from charges
- Availability of standing instruction, ECS and
Internet Banking, which were not available earlier.
• Your Bank effected several modifications in key
parameters of home Loan, Educational Loan and
Baroda Traders’ Loan schemes to make the offerings
under these loans more attractive to your Bank’s retail
3. Other Business Initiatives
- Retail Loan Campaign- Retail Mansoon Dhamaka: For augmenting your Banks’ Retail Loan portfolio,
a Retail Loan Campaign, Mansoon Dhamaka was
launched during the period 14th May, 2012 to 30th
September, 2012. During the campaign period, a fresh
business of Rs 2,088.21 crore in 24,323 accounts was
- Retail Loan Campaign- Retail Loan Festive
Dhamaka (i): Going by the success of Retail Mansoon
Dhamaka Campaign, a new campaign - “Retail Loan
Festive Dhamaka” with a focus on Home Loans and
Car Loans was launched between 1st October 2012
and 30th November 2012. This was further extended
up to 31st December 2012, going by the response.
Aggregate amount of sanctions until 31st December
2012 after the launch of this campaign stood at Rs
1,617.58 crore in 18,102 accounts.
- Retail Loan Campaign- Retail Loan Festive
Dhamaka (ii): Going by the success of the above
mentioned campaigns, a new campaign, “Retail Loan
Festive Dhamaka (II)” focusing on the Home and Car
Loans was launched from 1st January 2013 to 31st
January 2013, and further extended up to 31st March
2013. Aggregate amounts of sanctions until 31st
March 2013 after the launch of this Campaign were
Rs 1,811.04 crore in 16,750- accounts.
- Baroda Maha Utsava Deposit Scheme: Term Deposit
Product styled as “Baroda Maha Utsava Deposit
Scheme” for 1111 days was introduced on 13th August
2012 offering an interest rate of 9.15% replacing earlier
scheme “Baroda Utsav Deposit Scheme” of 444 days
with interest rate of 9.35%.
- Savings Bank Deposit Campaign (i): For mobilizing
low cost deposits, a Savings Bank Deposit Campaign
was launched on 1st July 2012 for a period of three
months. An amount of Rs 2,301 crore (retained
amount) as fresh Savings Bank Deposit was mobilized
in 16, 06,508 accounts during the campaign period.
- Savings Bank Deposit Campaign (ii): To further
mobilise low cost deposits, a second Campaign was
launched on 1st January 2013 again for a period of
three months. An amount of Rs 2,700 crore (retained
amount) as fresh Savings Bank Deposit was mobilized
in 13,89,750 accounts opened during this particular
- Opening of new Retail Loan factories: Three new
Retail Loan factories were opened during the year
under review at Sodepur, Mehsana and Rajkot to
stimulate the retail loan business.
Wealth Management Services
As a part of its customer centric measures, your Bank has
been providing Wealth Management Services (WMS) for its
HNI & affluent customers since June 2004. At present, under
its WMS, your Bank provides various third-party products in
Life Insurance, Non Life Insurance including Health Insurance,
Mutual Funds & Equity Trading under tie-up arrangements with
With a purpose to strengthen the Wealth Management
segment, your Bank had formed two joint ventures with leading
international brands in Mutual Funds and Life Insurance. The
products of these two J.V. Companies are distributed through
your Bank’s wide network of branches across India. The sales
have started showing encouraging growth since the inception
of these joint venture companies.
Besides distributing the products of its J.V. Companies, your
Bank has other tie-ups with National Insurance Company Ltd.
for General Insurance and seven leading Asset Management
Companies for Mutual Fund products. Your Bank also has a tie
up with India Infoline Ltd for e-trading since Jan 2007 and has
its own equity trading platform through BOB Capital Market Ltd.
which was launched for retail customers. Your Bank has taken
several customer friendly & investor convenience measures
by enabling all its branches to accept ASBA applications for
IPO/FPO and Rights Issue subscriptions. Furthermore, it has
launched an online ASBA application submission facility for its
net-banking customers with transaction rights to apply in IPO/
FPO/Rights issue from the comfort of their home/office. Your
Bank has enabled 12 centers for accepting Syndicate ASBA
applications. These customer centric measures are expected to contribute significantly to your Bank’s endeavor at CASA
To improve its service standards further, your Bank has
introduced a premium Collection module for IndiaFirst Life
Insurance policy holders. Moreover, your Bank’s Non-Life
Insurance products provide a cover to the assets financed by
your Bank. This augments your Bank’s fee based income and
also offers borrowal units the option to mitigate risks under the
umbrella of its Wealth Management services.
The year FY14 would see the Bank move to the next stage
in qualitative Wealth Management Services. These include
“insurance renewal premium collection” through ATMs and
fund collection module for Baroda Pioneer. This will help your
Bank’s branches to extend services to its investor customers.
Your Bank’s tie up partner for Non-life Insurance business will
also take a further step by enabling issuance and renewal
of policy through the CBS platform and through the Bank’s
The importance of micro, small & medium enterprise sector
(MSME) in the developmental context of any country is well
According to the Dun & Bradstreet research (2012), the MSME
sector in India is highly heterogeneous in terms of the size of
the enterprises, variety of products and services, and levels of
technology. The sector not only plays a critical role in providing
employment opportunities at comparatively lower capital cost
than large industries but also helps in industrialisation of
rural and backward areas, reducing regional imbalances and
assuring more equitable distribution of national income and
wealth. MSMEs complement large industries as ancillary units
and contribute enormously to the socioeconomic development
of the country.
Taking into account the importance of this sector, your Bank
also considers units in manufacturing/services sectors that have
investment in Plant and Machinery/Equipment respectively, in
excess of regulatory guidelines and have turnover up to Rs
150 crore, on the same footing as MSME units. This is done
to give a preferred attention to this ‘expanded’ sector on the lines of regulatory MSME enterprises. For regulatory reporting,
however, your Bank strictly follows the regulatory definition
Performance of your Bank under the regulatory category of
MSME was extremely strong during FY13 despite challenging
economic environment. In fact, to give a boost to this business,
the interest rates applicable to these units were further
rationalized by your Bank during the year under review to suit
the specific requirements of MSME units.
It may be noted that your Bank successfully achieved all targets
under this business fixed at the beginning of the year.
Growth of Business
The total outstanding in MSME Sector works out to Rs 44,974
crore as on 31st March 2013. The growth in MSME advances
during the last three years is given in the table below.
Growth (%, YoY)
Major Achievements in FY13
- The SME advances of Rs 44,974 crore as of end-Mar
2013 reflected a growth of Rs 10,462 crore (30.31%)
on a y-o-y basis.
- The advances of Rs 17,409 crore to Micro Enterprises
in the total credit of Rs 28,047 crore to MSE sector
(as of the previous year) stood at 62.1% in FY13
comfortably surpassing the mandatory target of 60.0%
fixed by the RBI.
- The SME advances as on 31st Mar, 2013 contributed
19.7% to the Gross Domestic Credit of your Bank.
- The advances to Micro & Small enterprises reached
the level of Rs 38,227 crore as against the government
set mandatory target of Rs 33,650 crore by end-Mar,
- Going by the success of the loan factory model, your
Bank opened six New SME Loan Factories during
- Your Bank introduced a New Product named as
“MSME Capex Loan and Capex Card” during FY13
to further promote its MSME business.
Initiatives in MSME Financing During FY13
- Your Bank opened five new SME Loan Factories at
Indraprastha (New Delhi), Anand, Bhopal, Junagarh,
and Jalandhar – taking the total of SME loan factories to
52 across India. The ‘loan-factory’ model is a pioneering
concept introduced by your Bank to ensure better quality
of credit appraisal, reduced turn-around time and improved
volumes – thereby enabling your Bank to increase its
MSME lending without sacrificing the quality of credit.
- Your Bank has already planned the SME Loan Factories,
Specialized SME Branches and MSME cells at various
branches for the fiscal year FY14.
- Your Bank actively participated in various exhibitions and
seminars during FY13 to build brand image of the Bank
in MSME financing.
- Your Bank organized an Awareness Programme in order
to achieve total customer relationship through enhanced
cross selling, locational meetings, and involvement of trade
bodies at national and state levels.
- Your Bank introduced the system of monthly performance
ranking to share performance of SME Loan Factories
amongst all and to recognize/felicitate/award best
performing SME Loan Factory on half yearly/ annual basis
as a proactive skill building and encouraging measure.
- For the purpose of continuous knowledge updating and
skill building of processing/ marketing officers attached to
the SME factories, your Bank organized external training/
special courses at Training Centers and its own Staff
- Your Bank has a plan to introduce a new product viz.
‘Standby Term Loan and Working Capital Limit’ to SMEs with attractive value propositions.
- Your Bank also introduced a “online loan application” for
MSME borrowers with tracking of the proposal.
- Your Bank renewed a number of area specific schemes
pertaining to a variety of sectors/industries across India
- Your Bank also celebrated the MSME Festival during Jan-
Mar 2013 to encourage staff at the SME Loan Factories
and branches to re-double efforts at canvassing new
- Your Bank organized an SME borrowers’ meet at Aligarh &
Raipur jointly with Dun & Bradstreet for imparting relevant
knowledge about Rating, Financial terms & balance sheet
The area-specific-schemes developed for certain pockets
involving a cluster of units engaged in similar activities with
good business potential yielded satisfactory results during
the year under review. The cluster Development was also
undertaken with lead district branches. Directed programmes of
the Government of India, particularly the Weavers Credit Card
and lending under Prime Minister’s Employment Generation
Programme (PMEGP) received focused attention during FY13.
In recognition of your Bank’s performance in the MSME lending
in the Western part of India, your Bank received an Award at
the august hands of His Excellency, the President of India for
the year FY13 in New Delhi recently.
Rural and Agricultural Lending
Your Bank has always been a frontrunner in the area of Priority
Sector, in general, and Agriculture lending, in particular. It has
been harnessing the vast potential of the rural market through
its wide network of 1,436 rural branches and 1,162 semi-urban
Even during FY13, your Bank opened 291 new branches in
rural and semi-urban areas.
Your Bank is the proud Convener of State Level Banker’s
Committee (SLBC) in the states of Uttar Pradesh and Rajasthan.
Your Bank shoulders the Lead Bank Responsibility in 45 districts
in the states of Gujarat (12), Rajasthan (12), Uttar Pradesh (15), Uttaranchal (2), Madhya Pradesh (2) and Bihar (2).
Your Bank has also sponsored three Regional Rural Banks
(RRBs) in three states with a network of 1,526 branches and
total business of Rs 29,282.38 crore as of end-March, 2013.
Performance of Priority Sector Lending in FY13
Priority Sector Advances of your Bank surged from Rs
68,527 crore as at the end-March 2012 to Rs 80,004 crore as
at the end-March 2013 and formed 39.31% of the Adjusted Net
Bank Credit (ANBC) against the mandated target of 40.00%.
A shortfall in achieving the target is primarily due to some
changes/modifications in the regulatory definitions pertaining
to priority sectors.
Agriculture Advances: The Direct Agriculture advances of
your Bank rose to Rs 22,645 crore with a rise of 10.9% over
the previous year with an absolute growth of Rs 2,220 crore.
The total agriculture advances of your Bank recorded a flat
growth of 0.02% (y-o-y) and reached the level of Rs 28,739
crore as at end-March 2013. As stated earlier, this is due to the
impact of revised guidelines of Priority Sector Lending issued
by the RBI and made applicable w.e.f.20.07.2012. Your Bank’s
Direct Agricultural advances formed 11.13 % of ANBC as at
end-March 2013 against the mandated target of 13.50%. The
Total Agricultural Advances were at 14.12% of ANBC against
the mandated target of 18.00%.
Under its flagship agriculture loan product “Baroda Kisan
Credit Card”, your Bank issued as many as 2,74,665 Credit
Cards during FY13 to provide credit to farmers. Your Bank
has also launched Baroda Kisan RuPay Card, a ATM enabled
Kisan Card, during the year, for the convenience of the farming
community. Your Bank financed as many as 3,32,141 new
farmers during FY13. As a part of its microfinance initiatives,
your Bank credit linked 10,912 Self Help Groups with an
amount of Rs 198.45 crore during FY13 thereby taking the
total number of SHGs credit linked to 1,65,328 amounting to
Rs 1,369.97 crore.
Business and Social Initiatives
Your Bank introduced various initiatives/strategies during FY13
to harness the emerging opportunities for rural and agriculture
lending. Some of them are mentioned below.
- To augment Agriculture advances, your Bank conducted
Special Campaigns viz. Kharif and Rabi campaigns for
crop loans under which the disbursements of Rs 5,284
crore and Rs 2,262 crore, respectively, were made. Another
campaign for Investment Credit was also launched under
which disbursements of Rs 1,096 crore were made.
- Your Bank organized 4,245 Village Level Credit Camps and disbursed Rs 2,922.48 crore to 2,06,375 borrowers
- Your Bank identified 450 Thrust Branches across India
to enhance Agriculture lending which contributed 36.0%
of total Agriculture outstanding as at end-March 2013.
- Your Bank formulated various Area-specific Schemes tailor-made to the needs of local requirements, particularly
where there is a concentration of activities like Cold
storages, Poultry units, fishery etc. Suitable concessions
in the rates of interest, charges, etc. were allowed under
these schemes to garner maximum possible business.
- Your Bank launched automated loan processing system
for improving the efficiency of branches in processing of
loan proposals under Agriculture thereby facilitating timely
availability of credit to farmers in adequate quantity.
Baroda Grameen Paramarsh Kendra (BGPK)This
is another initiative undertaken by your Bank to help the rural
community by providing credit counseling, financial literacy
and other services like information on the prices of agricultural
products, scientific farming, etc. Your Bank had 52 BGPKs as
on 31st March, 2013.
Also, one more Baroda Swarojgar Vikas Sansthan
(BSVS),Baroda R-SETI Center was opened during FY13.
With this, the total number of BSVS went up to 47. Thus, each
of your Bank’s Lead Districts now has a R-SETI as per the
Indian government’s guidelines. A BSVS centre at Ajmer is
exclusively for women entrepreneurs. The BSVSs are primarily
the institutes for training the youth and imparting knowledge and
skills required for taking up self-employment ventures. During
FY13, around 42,601 youth beneficiaries were trained out of
which 27,891 have established self-employment ventures. Out
of the total 1,64,899 beneficiaries trained by these centers so
far, 1,02,996 have established their self employment ventures.
Financial Literacy and Credit Counseling Centres (FLCC)-“SARATHEE” : Based on the guidelines issued
by the RBI, your Bank has established 45 FLCCs, christened
as “SARATHEE” to impart financial literacy and credit
counseling services to the needy people to help them avail
financial services from the banking system and also to provide
counseling services to those who are under financial distress
due to a debt burden.
Your Bank has opened these centers under its BSVS trust and
services are provided by these centers to all the concerned free
of cost. Your Bank opened six new FLCCs during FY13, taking
the total number of FLCCs to 45 by end-Mar, 2013. Thus, each
of the Bank’s Lead Districts now has a FLCC centre.
Business Facilitators Model : This model has been
implemented across the country to accelerate Financial
Inclusion of the excluded segment as well as to augment
agriculture portfolio. Business Facilitators will mainly canvass
loan applications for your Bank for which Bank will pay
them compensation. Individuals including retired bank and
government employees, NGOs, farmers’ clubs and SHGs are
engaged as agents to greatly improve your Bank’s outreach in
the rural/semi-urban areas.
Micro Loan Factory : Your Bank has opened Micro Loan
Factories at Raebareli and Sultanpur in U.P. The Micro Finance
Loan Factory has a mobile van with facilities and all related
stationeries/documents necessary for SHG financing. It is
manned by officers who are duly authorised to sanction and
disburse loans up to Rs 25,000 to SHGs on the spot and at
their door steps.
Performance of RRBs Sponsored by the Bank
Consequent upon the mergers of two of its RRBs during the
year, the number of your Bank’s sponsored RRBs came down
• Baroda Uttar Pradesh Gramin Bank, Head Office:
• Baroda Rajasthan Khetriya Gramin Bank, Head Office:
• Baroda Gujarat Gramin Bank, Head Office: Bharuch.
Two of the other banks’ RRBs were also merged with your Baroda
Rajasthan RRB during the year under review. Consequent upon
the merger, the aggregate business of these three RRBs rose to
Rs. 29,284.23 crore as of end-March, 2013 from Rs 26,257.43
crore as at end-March, 2012, registering a growth of 11.53%.
The three RRBs together posted a Net Profit of Rs 97.06 crore
during FY13 as against Rs 148.22 crore earned during FY12.
The “Net Worth” and the “Reserves and Surplus” of all these
RRBs put together improved from Rs 1,018.44 crore at end-
March, 2012 to Rs 1,234.42 crore at end-March, 2013 and
from Rs 726.55 crore at end-March, 2012 to Rs 777.52 crore
at end-March, 2013, respectively.
Bank’s Committed Efforts towards Financial
Financial Inclusion (FI) is being viewed in your Bank not just
as a social commitment, but also as an instrument to bring
about overall economic development of rural India so as to tap
opportunities at the bottom of the pyramid of Indian economy
through sustainable ICT based delivery channels.
Your Bank’s Financial Inclusion Plan aims at providing banking
services at affordable cost to those segments of society who
are deprived of it, thereby bringing the unbanked population/
areas into the formal financial sector.
Strategies & Models Adopted
The Ministry of Finance has identified around 6 lakh villages
across India as an unbanked area. These villages are allocated
to various banks under the service area approach. Your Bank
had 21,526 villages under its service area as on 31/03/2013.
The Ministry of Finance and Reserve Bank of India has advised
banks to provide banking services at affordable costs to these
villages. Accordingly your Bank has approved a plan, which is
disaggregated further to a village level to cover these 21,526
service area villages by providing banking services to them in
three years’ time i.e. 2013-2016.
The following three business models are adopted by your Bank
for financial inclusion
1. ICT Based Business Correspondent Model
2. Mobile Van Model
3. Brick & mortar branches in FI villages.
Your Bank has covered 4,959 villages through the network of
1,436 brick and mortar rural branches, 3,474 villages through
the BC model and 49 villages through the mobile van.
During FY13, your Bank opened 151 brick and mortar branches
in un-banked villages.
• ICT Based Business Correspondent Model
In order to ensure that Financial Inclusion is implemented
in a most efficient manner and is fully integrated with
CBS, your Bank has appointed two Service Providers for
a complete end to end solution, i.e., from enrolment of
villagers to issuance of smart cards to them. The purpose
is to bring technology-based banking transactions to the
doorsteps of all villages.
The ICT based Business Correspondent Model is based on
Application Service Provider (ASP) model with Biometric
Smart Card based technology. Under this approach,
Business Correspondents visit villages with Point of Service
(POS) devices for carrying out customer enrolments
and transaction processing. These POS devices are
directly connected with the CBS of the Bank using GPRS
• Mobile Van Model
The second business model adopted for implementation of
financial inclusion is Mobile Van model. Under this model,
Mobile Vans move within a cluster of villages in service
area of the existing branch. The vans with the staff visit the
identified villages during fixed days in a week for providing
These mobile vans are equipped with the computer
hardware and connected directly to the CBS of the Bank
to enable the customers to operate their accounts through
mobile vans instantly. The account opening process and
other activities including transactions in accounts are
carried out in Mobile vans, as is done in normal branches.
Your Bank has presently deployed five mobile vans in
Gujarat, Uttar Pradesh, Bihar and Goa states covering 49
FI villages allotted to it. There is good response from the
FI customers for your Bank’s mobile vans. These vans’
exterior is designed with a view to educate the rural masses
about the Bank’s various deposit/loan schemes.
Ultra Small Branches (USBs)
As per the guidelines of Ministry of Finance, Government of
India, your Bank has opened 2,695 Ultra Small Branches
by 31st Mar, 2013 across the country in villages having
population above 2,000 which are covered through the
Business Correspondent Model. Your Banks’ officers from the
link branches are visiting these USBs on a pre-fixed date and
time. They would clear all the applications for account opening,
loan requests, resolving grievances, arranging meetings with
villagers on financial literacy, etc. besides advising villagers on
various banking products.
This initiative of your Bank has facilitated improvement in
financial literacy and confidence building at the village level,
which should eventually improve the responses for your Bank’s
financial inclusion drive.
Financial Literacy: A Key to successful Inclusion
The desired objective of Financial Inclusion can be achieved
only when the Bank is able to generate equal response from
the villages. In order to invoke a response from the villagers,
the Bank needs to educate them on various banking facilities
and its benefits to them. In other words, financial literacy would
be the key for success of financial inclusion initiatives of any
bank. Therefore, all constituents of FI need to develop a bond
with each other not only to provide banking facilities but also
to create massive awareness of banking and banking products
amongst the population through Financial Literacy, wherever a
bank is implementing Financial Inclusion program.
Your Bank has taken the following major initiatives towards
financial literacy in rural parts of the country.
- Around 47 Baroda Swarojgar Vikas Sansthan (Baroda
RSETI) impart vocational training to unemployed youth
in rural and semi-urban areas with the aim of equipping
them to become self employed and have conducted 5,505
training programmes and trained 1,64,742 youth of which
1,02,477 are self employed, with a settlement ratio of 62.20
% as on March 2013.
- Around 45 Financial Literacy & Credit Counseling Centres
(FLCCs) “SAARTHEE” are operational across the country.
Since the inception of these FLCCs, total 46,860 individuals
visited these centres and in 33,050 cases, the issues were
resolved by end-Mar, 2013.
- Around 52 Baroda Grameen Paramarsh Kendra’s facilitate
financial education, credit counseling, information sharing
and problem solving on technical issues, synergy & liaison
with other organizations for value added services and
development activities in rural areas.
- Mobile Micro Finance Loan Factory has been established
with a vision to provide credit and banking facilities to SHGs
at their doorsteps under the SHG – Bank linkage program,
ensuring a hassle free and prompt credit delivery within maximum of four days & hassle free credit to the SHGs.
- “BYST-BoB Entrepreneurship Development Programme”
(BYST) provides end-to-end support to disadvantaged
young dynamic micro-entrepreneurs in the form of loans,
business mentors, training, and networking & marketing.
- Tie up with Centre for Micro Finance (CmF), Jaipur to
provide support in formation of Quality SHGs, facilitating
credit linkages and training of branch staff thus helps in
development of villages in the service area of the Bank’s
branches and improving the micro finance and agriculture
- Your Bank has also instituted a Professor Chair at the
Institute of Development Studies (IDS), Jaipur one of
the premier Research & Policy Advisory institutions with
a view to examine space available to rural credit, rural
development and agriculture development and also to
study challenges and measures to overcome them. The
objective is to conduct various studies on the above lines
and learn from the feedback.
Product Innovation in Financial Inclusion
Your Bank has also been using financial inclusion as an
opportunity to strengthen its function of Corporate Social
Responsibility (CSR). Your Bank is taking various steps to
increase banking awareness amongst the rural people, educate
them on its products, rural credit, agriculture technical knowhow,
credit counseling, knowledge sharing/problem solving,
up-lifting the women and the girl children, formation of farmers’
clubs & formation of SHGs, etc.
The project, with the help of imparting basic training and
guidance, brought out the potential of the unemployed youth by
encouraging them to start their own business in rural areas. With
the introduction of new technologies, now customers are getting
banking services instantly through business correspondents
appointed in their villages.
Your Bank has introduced several customer-oriented products
specifically designed for FI customers. Some of them are as
Basic Savings Bank Deposit Account with in-Built
The product is specially devised for individuals from Financial
Inclusion villages with relaxed KYC norms as per the RBI
guidelines. The account can be opened without depositing
amount which doesn’t attract any penalty and will be opened/
operated through business correspondent, branch and ATM.
Flexible RD Account (Yashasvi Jama Yojana)
This is a money back RD facility duly designed for financial
inclusion account holders to provide liquidity. The product
offers money back facility, at the end of six months, an amount
equivalent to 50.0% of the outstanding credit balance in the
account can be paid back as per the requirement of depositor.
Baroda Kisan Credit Card (BKCC)
This product is for farmers to cover their needs like production
credit, investment credit, personal loan needs as well as
consumption needs. It is flexible in utilization of the limit as he
can utilize the limits as per his requirements during the year.
Baroda General Credit Card (BGCC)
The BGCC is implemented through all the rural and semiurban
branches of the Bank to cater to the different needs of
Insurance Product with Low Premium
Your Bank has also introduced a life insurance product with
low premium for financial inclusion customers in coordination
with India-first Life Insurance Company. This gives flexibility to
customers to obtain cover from Rs. 5,000/- to Rs. 50,000/- at
single premium of Rs. 20.99 per thousand for the period of
Direct Benefit Transfer
The Government of India has decided to roll out Direct Benefit
Scheme (DBT). The purpose of Direct Benefit Transfer is
to ensure that beneficiaries directly receive the government
benefits to their accounts electronically, cutting down delays
and pilferages if any in existing distribution system. A lot of
preparatory work has been done and a lot of work is ongoing in
connection with the rollout of DBT. The government will transfer
cash benefits like subsidies, scholarships, pensions, NREGA
wages, LPG subsidy, etc. directly to the bank accounts of the
identified beneficiaries under this programme. A shift to this
method of transferring government benefits would be done in a
phased and time bound manner. Around 43 districts in 16 states
have been identified for the first phase of DBT under 26 selected
schemes w.e.f 01/01/2013. It should be rolled out in another 78
districts w.e.f. 01/07/2013. It is intended that the DBT scheme
would be rolled out in all districts across India by 31/03/2013.
The implementation of DBT scheme is done from the lead
bank platform. Your Bank has the lead bank responsibility in 45
districts. Besides this, your Bank has to monitor the effective
implementation of the DBT scheme.
Aadhaar Payment Bridge System (APBS)
APBS is the new payment service offered by National Payment
Corporation of India (NPCI) using the Aadhaar Number issued
by Unique Identification Authority of India. The government
benefits are transferred to the accounts of the beneficiaries
on the basis of Aadhaar number so that the bank details and
account numbers of the beneficiaries need not be maintained
by the government departments/agencies. APBS is now
operational in your Bank.
Aadhaar Enabled Payment System (AEPS)
AEPS is a bank led model which allows online interoperable
financial transactions by PoS (Micro ATM) through the Business
correspondent of any bank using the Aadhaar authentication.
The four Aadhaar enabled basic types of banking transactions
are as follows.
1. Balance Enquiry
2. Cash Deposit
3. Cash Withdrawal
4. Aadhaar to Aadhaar Funds Transfer
AEPS is in a testing phase in your Bank and will be operational
by mid of May 2013.
Highlights of the Bank’s Performance in FI up to
• Your Bank has so far covered 4,959 villages out of 21,526
villages under its service area. Almost 90% of the villages
are on the active transaction mode.
• Your Bank has opened 49.60 lakh “No-Frill Basic Saving
Banks Accounts”, out of which 8.69 lakh accounts were
opened through the Business Correspondent Agents
• The average balance outstanding in the “No-Frill accounts”
of your Bank is around Rs. 1,200 crore.
• Your Bank has opened 2,695 Ultra Small Branches in
villages with population above 2,000.
• Your Bank has approved a disaggregation plan up to the
branch level to implement its FIP for 21,526 villages by
• Your Bank has introduced “Micro-Insurance” product for FI
customers. Your Bank is the 1st Bank to do so.
• Your Bank is operating five mobile vans in four states i.e.
Gujarat, Bihar, Goa and Uttar Pradesh and has plans to
deploy 100 more mobile vans.
• Your Bank has entered into an agreement with CSC
e-governance Ltd. to enroll their CSCs in the Bank’s service
area as BCAs on KIOSK platform under FI.
• Your Bank is fully prepared technologically for Aadhar based
payments, UIDAI Linkages, Village code updation etc.
Advances to SC/ST Communities during FY13
The outstanding advances granted by your Bank to SC/
ST communities have been growing year after year. This is
evident from the fact that the outstanding advances granted to
them went up from Rs 4,336.02 crore as at end-March, 2012
to Rs.4,712.66 crore as at end-March, 2013. In fact, the SC/
ST communities accounted for a share of 27.64% in the total
advances granted to weaker sections by your Bank during the
year under review. Furthermore, a special thrust is laid by your
Bank in financing SC/ST under various government sponsored
schemes namely Swaranjayanti Gram Swarojgar Yojana
(SGSY), Swarna Jayanti Shahari Rojgar Yojana (SJSRY), Prime
Minister Employment Generation Programme (PMEGP), etc.
The Baroda Swarojgar Vikas Sansthans (BSVS) have been
giving due preference to SC/ST communities while selecting
the trainees. It is heartening to indicate that so far, these centres
have trained 72,365 youths under the SC/ST category.
It was a historic year in the International Operations of your
Bank with opening of 100th overseas office at DIFC, Dubai.
The branch was inaugurated by Shri P. Chidambaram, Union
Minister of Finance, Government of India. Since its foray into international arena in the year 1953, your Bank has been
consistently expanding its overseas network to tap the global
During the year, the major advanced economies continued
to face sluggish growth, fiscal drag and severe austerity
measures and its spillover effect continued to impinge on the
other economies. Even during this difficult environment, the
International Operations of your Bank maintained the healthy
growth trend, by keeping a constant watch on the developments
and taking pre-emptive steps by suitably adjusting the business
Your Bank kept a constant watch on the emerging opportunities
and there was greater synergy amongst the overseas centres
to derive the full benefit of the large network of branches.
Your Bank continued with its initiatives for customer convenience
through improvements/enhancements in its IT infrastructure,
modifications in products and services in line with the local
requirements, expanding the branch network and publicity through
print and electronic media. The year also saw your Bank entering
two new centres through branches in Sydney, Australia and DIFC,
Dubai. The Joint Venture Bank in Malaysia – India International
Bank (Malaysia) Bhd. was also made operational during the year.
Business & Profit Performance
During FY13, the total business (Deposits + Advances) of your
Bank’s overseas branches registered a growth of 24.2%. While
its Customer Deposits increased by 24.3%, Total Deposits by
26.2 % and Advances by 21.8%.
During FY13, the International Operations contributed a
sizeable 29.4% to your Bank’s global business.
Total Assets of the Bank’s International Operations showed
a healthy growth of 30.1% on y-o-y basis, as they increased
from Rs 1,28,398 crore as of March 2012 to Rs 1,67,038 crore
as on March 2013.
Even during this challenging period of surplus liquidity in the
system and slowdown in the credit offtake, the Gross Profit for
the year FY13 registered a growth of 24.7% over the level of
previous year due to enhanced business level and improvement
in spreads. However, the Net Profit posted a negative growth
of 19.20% during the year on account of higher provisions.
The contribution of international operations to the Bank’s global
Gross Profit was 24.6%.
The wide spread international presence of your Bank exposes
it to increased credit risk. Your Bank takes all steps for
realistically assessing the credit needs of any project during the
pre-disbursement stage and carefully monitors the appraisal
and other technical, economic, commercial, organizational and
The global slowdown has impacted all sectors of the world
economy and this has put added pressure on the quality of
assets. In response to this, your Bank has further enhanced the
monitoring techniques to maintain the quality of assets. This
required timely identification of stressed accounts and taking
all possible steps for recoveries. Furthermore, an enhanced
monitoring of restructured accounts was effected so that these
do not slip to NPA categories.
However, the external environment did impact the quality of
assets and Gross NPAs as % to Total Advances increased from
0.68% as of Mar’12 to 1.37% as on Mar’13.
Your Bank’s international presence covered 24 countries
through its 100 offices during FY13 are as under:
Bank’s Overseas Branches/Offices
Bank’s Representative Offices
Branches of Bank’s Overseas Subsidiaries
The Bank also has the following Joint Ventures:
1. Indo Zambia Bank Ltd., Zambia having - 20 branches
2. India International Bank (Malaysia) Bhd., Malaysia - 1 branch
During FY13, your Bank opened 12 new branches/offices
(including those of the subsidiaries). This included opening of
the branches of the Bank at Sydney, Australia; DIFC, Dubai,
Sohar, Oman; Rose Belle, Mauritius and Electronic Banking
Service Unit (EBSU) at DMCC, Dubai.
The branches of the subsidiaries were opened at Wellington
and Manukau in New Zealand; Entebbe, Kabale and Industrial
Area, Kampala in Uganda; Tema in Ghana and Gaborone West
In addition, the Joint Venture Bank in Malaysia – ‘India
International Bank (Malaysia) Bhd. also commenced operations
during the year.
In order to further expand the branch network, your Bank has
identified upcoming centres in countries where it is already
present. This will further consolidate your Banks’ operations
and improve/protect the market share. Your Bank also has
plans to enter new countries offering opportunities for profitable
growth of business.
Necessary infrastructure is being created in your Bank for
further expanding the network in UAE, Uganda, Kenya, and
Botswana. Your Bank is awaiting approval of the RBI for opening
of two additional branches in the U.K.
The overseas expansion is being considered in line with the
various directives issued from Ministry of Finance, Government
of India regarding the overseas expansion of Public Sector
Banks of India.
Your Bank has Global Syndication Centre at London and
Regional Syndication Centres at Dubai and Singapore, which
focus on the business of Syndication Loans in International
Market. Your Bank has set up an International Merchant
Banking Cell (IMBC) at Corporate Office, Mumbai, which mainly
caters to the requirements of Indian corporates. Your Bank
is an active player in the Syndication Loan Market and also
participates in loan origination.
Products and Services
Your Bank is having a single Core Banking Solution at all its
overseas branches and subsidiaries. This facilitates introduction
of new products and services and also helps in carrying out
modification/improvement in line with the requirements of
customers in the country of operation.
The technology is being fully utilized by your Bank to have a
competitive edge by continuous improvement and innovation.
Due publicity is given through electronic and print media to the
target customers of your Bank.
Technology in Overseas Operations
- The No. of ATMs at overseas Territories and subsidiaries
increased to 89 (54 on-site and 35 off-site) as on 31st
March, 2013 from 76 (45 onsite and 31 offsite) as on 31st
March, 2012. Further, three more ATMs are in the process
of being installed.
- Many of the territories/Subsidiaries are moving to Chip
based debit cards.
- Transaction based internet banking branded as “Baroda
Connect” is implemented in 12 overseas territories/
subsidiaries viz UAE, United Kingdom, Oman, Mauritius,
Fiji, Seychelles, Australia, Kenya, Uganda, Botswana, New
Zealand and Ghana. Moreover, a “view-based internet
banking” is implemented in Tanzania.
- Global Treasury Solution has been implemented at US,
UK, UAE, Bahamas, Bahrain, Hongkong, Singapore and
- Implementation of Centralized SWIFT activity has been
completed and is operating from your Bank’s Data Centre.
Except US Territory, all Territories/Subsidiaries are routing
their Swift operations through SWIFT Cell, Data Centre.
- Payment Messaging System is a middleware between
Core Banking Solution (Finacle) and SWIFT which help
in Straight through Processing of incoming and outgoing
SWIFT messages with Anti Money Laundering check. The
same has been implemented in all /Subsidiaries, except in
the US Territory.
- The AML Erase (Batch mode) has been implemented in
- The Anti Money Laundering Online List Matching solution
has been implemented at 21 Territories/Subsidiaries,
except the US territory.
Risk Management in Overseas Operations
The Basel II guidelines were implemented at all the overseas
territories of your Bank with effect from 31st March, 2008 and
your Bank has adopted a Standardised Approach for Credit
Risk, Standardised Duration Method for Market Risk and Basic
Indicator Approach for Operational Risk.
Your Bank has set up a separate Risk Management Department
at overseas centres to deal with Credit, Market & Operational
Risk and has posted specialized Risk Managers to such
centres. This has resulted in strengthening of Risk Management
Systems and their implementation.
The BOB RAM Model for internal Credit Rating implemented at
overseas centres has further strengthened the credit monitoring
process by capturing vital information related to advances
accounts and their pricing.
The ASCROM Model for Asset Classification and Credit
Monitoring has been implemented at all the overseas territories
of your Bank.
Regulatory Compliance in Overseas Operations
Your Bank follows stringent of the home/host country regulatory
norms and always remains a regulation-compliant Bank. All
the regulatory guidelines/changes/issues are attended on top
To handle the compliance issues, your Bank has posted
dedicated officers at overseas centres whose skills are
continuously enhanced through training and other avenues.
The compliance is seen not merely a regulatory requirement but also to protect the interest and reputation of the Bank and
All the overseas territories/subsidiaries have the Policies/
Manuals in varied areas of banking as per their respective
regulatory requirements. These are periodically reviewed to
ensure their conformity with the regulatory guidelines and
Your Bank operates a State of the Art Dealing Room at Baroda
Sun Tower at its Corporate Office in Mumbai. Through this
dealing room, your Bank is well positioned to scale up its
Treasury Operations. The Treasury Division handles your
Bank’s domestic treasury operations and covers activities in
various markets i.e. Foreign Exchange, Interest Rates, Fixed
Income, Derivatives, Equity and other alternative asset classes.
The advanced technology platforms are used by your Bank to
offer a basket of financial products to its clients including interest
rate swaps, currency swaps, forwards and options.
Your Bank has also put in place a sophisticated Automated
Dealing system to offer the auto generated real time foreign
exchange rates to the clients of its authorised branches
spread across the country. As a customer friendly initiative,
during the year FY13, enhancements were made by replacing
the old servers with high end servers for BOB-Authorised
Dealing System facilitating improved and faster processing of
transactions cutting delays and breakdown in customer service.
Under the Business Process Re-engineering, your Bank has
successfully implemented Global Treasury solution across
major financial centers. The Global Treasury Platform is running
smoothly in nine centres, notably, Mumbai, London, Bahamas,
Brussels, Dubai, Bahrain, Singapore, Hong Kong and New York.
The tenth implementation of Treasury solution at DIFC Dubai,
an offshore Banking unit is on the cards.
During FY13, promotion of growth and control of stubborn
inflation were the key monetary policy challenges. The RBI
reduced the Repo and Reverse repo rates by 100 bps and
infused liquidity by cutting CRR by 75 bps during the last year.
The RBI also conducted Open Market Operations to the extent
of Rs 1,27,180 crore to infuse liquidity into the system. Higher
than announced borrowing programme and high inflation put
pressure on Gilt yields until November, 2012. This and the
pause by RBI in changing monetary policy rates resulted in the
10-year benchmark gilt to trade in the range of 8.05%-8.25%
during July to December, FY13. However, after the resumption
of Open Market Operations by the RBI in Dec, 2012 and easing
of policy rates in January 2013, the 10 year Gilt touched a low
of 7.80% while ending the year at 7.95%.
Against a backdrop of weak economic growth and corrective
steps & measures by the government to control fiscal deficit,
your Bank’s Treasury accumulated securities offering higher
yields and maintained a prudent duration for its fixed income
portfolio. This strategy was useful for the Bank to maintain
a good average yield on its Investments and also helped in
booking of profit on sale of Investments when the rate cutting
cycle resumed in the last quarter of the year. The average yield
on Domestic SLR investments was 7.76%. During FY13, the
Treasury earned Rs 7,450 crore as Interest/Discount earnings,
while the Profit on Sale of Investment and Exchange Earnings
were Rs 617 crore and Rs 803 crore, respectively.
Your Bank’s Treasury offers customized solutions using
available products viz Interest Rate Swaps (IRS), Currency
Swaps (CIRS), Forwards and Options to meet the Interest
rate and Foreign Exchange risk mitigation requirements of
the corporate clients. During the year, your Bank’s Treasury
actively participated in the arbitrage opportunities available
between various asset classes including Money Market CBLO,
Call, Market Repo, Government Securities and Forex markets.
The Treasury actively utilised the market movements and used
Overnight Indexed swaps for harnessing available hedging and
The sentiment in Equity markets improved during second half
of FY13 due to FII inflows, reform initiatives announced by the
Government and improving fundamentals of the US economy.
The Equity Desk of the Treasury actively churned its portfolio
and booked profits at regular intervals whenever an opportunity
emerged in the markets.
In line with the announcement of the Finance Minister in his
budget speech for FY12, your Bank, last year, co-promoted
the country’s First Infrastructure Debt Fund – M/s India
Infradebt Limited to facilitate the flow of long term debt fund to
The Foreign exchange desk of the Treasury retained its position
as one of the premier market players in the Forex desks of the
Public Sector Banks. The Proprietary trading desk was active in
cashing in of available arbitrages, using volatility in the markets
and mobilised resources in a tight liquidity position impacting
the Indian markets.
Your Bank’s Treasury Mid-Office monitors market exposures
and limits fixed by the Board of Directors, on a real time basis.
The Risk Management parameters, including Value-at-risk
(VaR) are used to measure Market Risk on all portfolios.
These measures are backed up by the Back Testing on risk
numbers and Stress Testing of various investment and currency
Corporate Social Responsibility (CSR)
As a responsible corporate citizen, your Bank is considering
donation to National/State Relief Funds and to any individual,
trust, society, charitable/social institutes of repute engaged in
social activities for the benefit of vast variety of people.
Donations are given to promote various activities. They are
extended essentially as a social welfare measure on a noncommercial
basis to individual trusts, social work organizations/
In particular, your Bank has been giving donations for the
• For the spread of education – including for the girl child
and womenfolk in remote villages.
• To reputed colleges/public schools and other similar
• To reputed hospitals engaged in charity or in service of
• Assisting families of soldiers died in wars and handicapped
• Old age homes
• Preservation of places of historical interest like gardens,
forts, temples etc.
• Promotion of efforts for protection, conservation and
cleaning of environment including plantation/re-plantation,
rivers, lakes, forests, sanctuaries etc.
• Adoption of gardens in cities where your Bank’s name can
• Family planning activities
• For measures promoting prevention of cruelty to animals
and for setting up and maintaining animal and bird Hospitals
• For promoting the promotion and use of non exhaustible
sources of energy like solar power, gobar gas plants in
• Vaccination projects for controlling spread of diseases/
• Providing support to organizations extending support to
handicapped persons like blind, lame, deaf and dumb, etc.
or suffering from any other disabilities
• Promotion of measures for pollution control
• Other matters/ projects of social and human value
During the Financial Year FY13, your Bank disbursed
donations amounting to Rs.699.74 lakh to various
organizations engaged in the field of education, health,
women welfare etc. The activity-wise disbursement of
donations are as follows.
|No. of Donations
Amount (Rs lakh)
Social Welfare Activities
Besides these activities, your Bank has established
Baroda Swarozgar Vikas Sansthan for imparting training to
unemployed youth, free of cost, for gainful self employment and
entrepreneurship skill development which help them improve
their family economic status and also gives a boost to various
regional economies within these locations. All the Lead Districts
of your Bank have Baroda Rural Self Employment Training
Institute (R-SETI ).
Your Bank has also established 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 mass on various financial
and banking services and to speed up the process of financial
inclusion, your Bank has also established Financial Literacy
and Credit counseling Centres (FLCC). As on 31st March, 2013
your Bank had 45 FLCCs.
Asset Quality Management
The year FY13 was a challenging year for the Indian banking
industry from the perspective of Asset Quality due to a fragile
economic environment. However, your Bank continued its
practice of rigorous monitoring and recovery of the NPA portfolio
to prevent any serious deterioration in its asset quality. Yet, an
overstretched economic downturn did impact your Bank’s asset
quality to some extent during FY13.
Indian banks, in general, witnessed heavy incidence of
slippages in FY13 due to volatile financial markets both within
and outside India, higher inflation and higher interest rate
regime throughout the year FY13.
In spite of various depressed economic parameters, the fresh
slippages during the year, were at 2.29% of the opening
Standard Advances of your Bank. Against the backdrop of high
slippages, the ratio of Gross NPA to Gross Advances was at
2.40% as on 31st Mar, 2013. Consequently, the ratio of Net
NPA to Net Advances increased to 1.28% by end-Mar, 2013.
However, your Bank’s Loan Loss Coverage ratio (including
the technical write-offs) was at 68.24% in FY13 - a relatively
higher level, if compared to your Bank’s peers from the PSU
During the year under review, your Bank laid down a
comprehensive structure of recovery and credit monitoring
function at the Branch, Region, Zone and Corporate levels.
Besides this, the Nodal officers at each DRT centre were
advised to follow-up the legal cases on day to day basis so as
to minimize the delay in obtaining decrees and execution thereof
in order to expedite and maximize recoveries. For Recoveries
of all DRT Suit filed NPA accounts, the assets charged to the
banks are now being sold through E-auction to get a fair market
value of assets charged to the Bank. Additionally, ARCs have
been appointed as recovery agents and consultants have
been appointed for liaison with Official Liquidator to speed up
Your Bank continued its emphasis on follow-up mechanism to
explore recovery prospects of NPA accounts. The system of
monitoring of large value NPA accounts of say Rs 25 lakh and
above, directly from the corporate office has ensured proactive
action by branches, advocates and recovery agents. Therefore,
the cash recovery in NPA accounts during FY13 was Rs 625.57 crore, higher than the cash recovery of Rs 580.46 crore during
FY12. The upgradation was also higher at Rs 341 crore during
FY13 compared to Rs 336 crore during FY12.
During FY13, your Bank laid specific focus on recovery of small
accounts by organizing Lok Adalats and Recovery Camps at
village/town level. Your Bank also launched an incentive linked
recovery scheme called “Sankalp – V”, to enlist personalized
attention of each and every staff member in pursuing recovery
efforts of small value accounts with an outstanding up to Rs 15
lakh. The cash recovery made during the year FY13 under the
scheme was very impressive at over Rs 231 crore.
The asset classification wise breakup of advances portfolio of
your Bank is as under.
| (Rs crore)
Asset Category (Gross)
31st March 2013
31st March 2012
Gross NPA is comprising of:
Total Gross NPA
Your Bank has undertaken a total end-to-end business and IT
strategy project covering your Bank’s domestic, overseas and
- Your Bank has built the best of technology infrastructure
by implementing a state-of-the-art Data Centre conforming to
Uptime Institute Tier-3 standard and also a Disaster Recovery
Site in different seismic zone with redundancy built in every
single point of failure to ensure uninterrupted banking service
delivery to customers. After successfully migrating Data
Centre to new Data Centre in the Bank’s own premises, your
Bank had undertaken Disaster Recovery Centre expansion
during the year to support its business growth and technology
- Your Bank has undertaken various other technology
initiatives like windows server virtualization, desktop
virtualization and backup consolidation as green initiatives
and also to improve Data Centre operational efficiency,
Application virtualization, Bandwidth up-gradation, ASM &
RAC Implementation, migration of Bank wide network to
new technology based on MPLS for improving uptime and
on demand upgrade has been successfully implemented.
Enterprise Management System was upgraded and new
modules deployed to effectively manage and monitor Bank’s
growing IT infrastructure.
- The Core Banking infrastructure has been upgraded
by your Bank from PA-RISC to Itanium servers in all 23
Overseas Territories for supporting additional business
volumes. Various new Regulatory initiatives like Linking of UID
numbers, Account number portability, Capturing KYC related
information, Simplified account opening procedures, Addition
of village codes in core banking system, Implementation of
Adhaar Payment Bridge System(APBS), Centralization of
Loan Processing at RLF and SMEs, Biometric Authentication
for CBS Login at Branches, Deployment of NPSLite (a
scheme to provide financial security for economically
disadvantaged people for protecting their future during old
age), automated processing of payments to NREGA, NPS
and MGPSYS beneficiaries etc were added during the year.
Core Banking Solution was implemented in Sydney Branch,
Australia. The robust technology platform has enabled your
Bank to open 100th International Branch during the year. Your
Bank’s RRBs are also on CBS Platform and as notified by
GOI, your Bank has successfully migrated RRBs of Central
Bank of India and Punjab National Bank with 350 branches
into one of RRBs’ of your Bank.
Alternate Delivery channels
• Internet Banking - BARODA CONNECT
The Internet Banking, viz., Baroda Connect (Retail portal)
has been completely revamped in your Bank to enhance
its look and feel and user-friendliness. Your Bank continued
to add more facilities under its Internet Banking channels.
Other enhanced features such as Tax payments of various
States, Integration of GRIPS (Government Revenue
Receipts for West Bengal), Credit to Loan accounts, Bill
payments, Online donations to Prime Minister Relief Fund,
India Life Insurance premium payment through e-banking,
IMPS(Immediate Payment services) through e-banking
were added during the year. Your Bank’s Internet banking
facility is made available on all Smart-phones/ tablets
offering comfort of anywhere Banking to its customers.
Internet Banking has also been implemented in total
13 overseas territories viz. Tanzania, Uganda, Kenya,
Mauritius, Seychelles, Botswana, New Zealand, UAE,
FIJI and by adding Transaction based Internet Banking
in UK, Oman and Ghana and view based in Australia
during the Financial Year. View Based e-banking is also
provided in all Bank sponsored RRBs. In order to enhance
security and confidence in Internet Banking, your Bank
introduced enhanced security features by deploying Fraud
Management Solution, including two factor authentications
in India and 5 Overseas territories viz. UAE, UK, New
Zealand, Kenya and Uganda by enabling ARCOT OTP,
PULL OTP and SMS OTP.
Your Bank has initiated the process of implementing Fraud
Management Solution for remaining six overseas territories
where transaction-based e-Banking is implemented.
View-based Internet Banking for US territory, PPF through
e-banking, Inter-Bank fund transfer through Internet
Banking for UAE have also been initiated by your Bank.
Your Bank also proposes to implement Transaction based
Internet banking for its sponsored RRBs, with two-factor
• Mobile Banking – BARODA M-CONNECT
As one more alternate delivery channel, many features
were added to Mobile Banking by your Bank to provide
various facilities to customers, viz., IMPS i.e. Immediate
Payment Services Person to Account (P2A) fund transfer, enabling mobile banking application in all i-Phones and
i-Pads in addition to Blackberry, Android, Windows,
enabling of NUUP(National Unified USSD Platform) etc.
Your Bank is also in process of implementing P2M (person
to Merchant) fund transfer under IMPS and has acquired
India First Life Insurance as the first merchant. Your
Bank proposes to enable Mobile Banking application for
Windows8, Implementation of Mobile banking in Uganda
and UAE etc. It has also initiated implementation of Mobile
banking in its sponsored RRBs.
The ATM Switch is upgraded in your Bank to a higher
version along with Hardware up-gradation with many
enhanced features for better performance, speedy ATM
transactions and ease of ATM expansion during the
year. The ATM switch is upgraded for India, UAE, Oman,
Mauritius, Fiji, Tanzania, Botswana, T&T and New Zealand.
Many customer centric initiatives such as implementation
of Rupay ATM Cards, Rupay POS and Rupay KCC Cards,
Brown label ATMs, Collection of Insurance premium for
IndiaFirst Life Insurance Policy holders through ATMs, ATM
Transaction receipt printing in HINDI, Regional Language
Screen selection for Gujarati, Marathi and Tamil, Talking
ATMs for visually impaired persons, implementation of
Fraud management Solution in ATMs/ POS in India have
been added during the year. Your Bank has successfully
launched Rupay ATM and Rupay KCC cards for its RRBs
Your Bank has also proposed some more Customer
Centric initiatives like Immediate Payment Services (IMPS)
through ATMs, Regional Language screen selection in
ATMs (for Malyalam, Telugu, Kannada, Bengali), Cheque
book request through ATMs, NEFT through ATMs, Rupay
e-commerce, multi-factor authentication for card not
present transactions, Visa Debit card for UAE, BSP(Bank
South Pacific) Interchange Implementation for FIJI,
Prepaid card withdrawals through ATMs, Chip Based Card
Implementation in India, Oman and Mauritius, Card to Card
fund transfer, Bill Payment through ATMs etc.
- All branches of your Bank (which are CBS-compliant)
are enabled for interbank remittances through RTGS and
NEFT. The RTGS and NEFT have also been interfaced
with your Bank’s internet banking portal. The Straight
through Processing (STP) of NEFT & RTGS have been
implemented for the Bank as well as RRBs. RTGS & NEFT
has also been implemented in Uganda.
- Internet Payment Gateway services for debit cards/credit
cards are increasingly offered to merchants and internet
shopper as a safe and secure channel for online purchases.
- Cash Management System is a full-function web enabled
cash management solution offered to your Bank’s
customers, covering services like Receipt Management
(Collections), Payment Management and Invoice
Management (Receivable and Payable Management).
- New Credit Card Management System has been
implemented to provide comprehensive management and support for your Bank’s Credit Card operations.
- The SWIFT facility for worldwide inter-bank financial
communication is provided at Foreign Exchange Authorized
Branches in India as also in 22 overseas territories by
adding UK and Australia during the year.
- The Payment Messaging Solution (PMS) is implemented in
22 overseas territories by adding UK and Australia during
the year & all authorized branches in India. PMS facilitates
validation and formatting of SWIFT messages generated
from CBS as per SWIFT standards, and also goes through
- During the year under review, a grid based Cheque
Truncation System (CTS) was implemented in all MICR
Centres in Southern States, Kolkata, Ludhiana and
Chandigarh in addition to Delhi. Your Bank has also
initiated the process of implementation of CTS in Mumbai
and Western Grid of Maharashtra, Gujarat and Madhya
- Automated Cheque Processing Centre (Inward & Outward)
was implemented in Mumbai and Surat and Ahmedabad
were added during the year, as a part of Business Process
Re-engineering under its Project Navnirmaan.
- For regulatory compliance, the Anti Money Laundering
(AML) has been implemented in India and 22 overseas
territories by adding Belgium during the year. Your Bank
has also implemented Risk Management solution. Your
Bank has also implemented Phase I AML solution in all its
sponsored RRBs and implementation for Phase II AML is
- Your Bank has implemented Customer Relationship
Management as a new initiative for providing better
services to customers through a contact centre over phone
in order to improve their satisfaction and loyalty. Existing
customers/Prospective customers may call on Toll Free no.
(1800223344 & 18001024455) wherein following services
can be availed of.
- Issuance of a cheque book
- Enquiry about products and services
- Account Enquiry – Balance, Transaction, Amount in
- Hot-listing of ATM cards
- Stop payment marking / un-marking
- Request for issuance of debit card.
- Request for re-generation of debit card PIN
- Support for e-banking users
- Re-generation of mobile banking password
- On-line (paperless) TPIN generation facility
Other information regarding products and services of your
Bank is also provided to prospective customers/account
holders. The CRM applications is linked to sales offices like
Retail Loan Factories (RLFs), City Sales Offices (CSOs)
wherein the leads generated at contact centre on the basis
of enquiry about the products by customers are transferred
to these offices for further processing.
Your Bank has also completed a launch of recovery processes through contact centre wherein customers
are informed about the EMI and due amounts. This shall
facilitate customers to deposit EMI/due amount on demand
- The Retail Depository Services are made available to
your Bank’s Retail as well as Corporate customers. With a
centralized depository application, branches are equipped
to provide depository services for both NSDL as well as
CDSL. With Online Trading System, your Bank will be
able to provide complete suite of online services to the
customers for trading in instruments like equities, mutual
funds, bonds and initial public offering (IPOs).
- For improving your Bank’s service delivery, the Back Office
functions have been centralized at City Back Offices and
Regional Back Offices. Your Bank now has 70 City Back
Offices and 10 Regional Back Offices. The personalized
cheque book issuance has been centralized. Your Bank
has also started centralized FCNR operations.
- The Integrated Global Treasury Solution has been
implemented in UK, UAE, Bahamas, Bahrain, Hongkong,
Singapore, Belgium and in India, reducing the cost of
operations and better fund management.
- Enterprise wide GL Solution has been implemented. This
provides variety of inputs to your Bank for strategic decision
making in business development and also generates
enterprise wide consolidated reports.
- The Centralized Payroll, Salary module, e-TDS module and
Leave Module have been implemented for all your Bank’s
offices in India.
- The Human Resource Networking for Employees Service
has been implemented with the objective of creating a
central database of the Bank employees for facilitating
decision-making, promotion and selection exercise as also
for automating other HR processes.
- Your Bank had also undertaken as a part of its business
strategy, Data Warehouse for providing flexible and
interactive source of strategic information, Customer
Relationship Management for better customer insight and
uniform customer view across channels.
- Your Bank has upgraded existing applications like
Exchange, e-Business suite with enhanced features,
encompassing Customer Relationship Management,
HRNes and Enterprise wide GL modules.
- The IT setup has been developed for account opening
process and transactions, both online and offline, to be
carried out through Business Correspondent thus enabling
Financial Inclusion. The Mobile Van Banking is launched in
Gujarat, UP & Bihar on a pilot basis as the Bank’s Financial
- Your Bank has fully automated its Loan Processing (Retail,
Agri and SME) modules for better and quick customer
service. Your Bank also provides a single click Online
loan Application feature for Home Loan, Auto Loan and
Your Bank has also initiated automation of Loan processing
for MID-Corporate and Corporate customers.
- A robust Information Security Management System was
put in place during the year under review to protect the
technology against security threat. A Comprehensive Audit
by External Agencies is being successfully carried out
by your Bank for its Core Banking Solution and all other
applications as well as for Data Centre/Disaster Recovery
- Your Bank has set up a Security Operation Centre (SOC)
for enhanced IT security.
- Your Bank’s both Data Centre and Disaster Recovery
Centre are ISO 27001 certified.
- Your Banks has Implemented Fraud Management Solution
for Internet Banking, ATM & POS. In order to enhance
security and confidence in Internet Banking, your Bank
introduced Fraud Management Solution, including two
factor authentications in India and five Overseas territories
viz. UAE, UK, New Zealand, Kenya and Uganda by
enabling ARCOT OTP, PULL OTP and SMS OTP.
- As a security measure, Your Bank has also enabled SMS
Alerts delivery facility to its customers for all transactions
made through alternate delivery channels and for all CBS
transactions worth Rs.5000 and more.
- Your Bank is regularly conducting VAPT (Vulnerability
assessment & Penetration Testing) of external facing
applications, eBanking log monitoring etc.
- Your Bank has enabled a Fraud Risk Management system
for day-to-day monitoring of suspicious transactions at
Branches for protecting interest of customers.
- While cyber-attacks have become more unpredictable
and electronic payment systems vulnerable to new types
of misuse, it is imperative that banks introduce certain
minimum checks and balances to minimise the impact
of such attacks and to arrest/minimise the damage. To
minimise the damage, your Bank has initiated following
additional security measures which will be enabled shortly.
- All new debit and credit cards will be issued for
domestic usage unless international usage is
specifically sought by the customer.
- Convert existing MagStrip Cards to EMV Chip card.
- PIN enabled POS
- Enabling additional security as addition of Digital
signatures for Corporate Internet Banking.
Direct Benefit Transfer
- Your Bank has initiated Direct Beneficiary Transfer under
Aadhaar Payment Bridge System (APBS) and wages
payment for Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA).
- For MGNREGA transactions, your Bank has started Pilot
Project for Sanganer Block in State of Rajasthan during
the year and processed 9,593 transactions amounting Rs.
- Under APBS, your Bank has linked 1, 31,735 Adhaar Card
and provided credit to 6,635 beneficiary amounting Rs
- Your Bank has also initiated another project for Direct
Beneficiary transfer in association with Central Project
Scheme Monitoring System (CPSMS).
Your Bank’s e-business department provides different types
of Alternate Delivery Channels (ADC) such as ATMs, Internet
Banking (Baroda Connect), Mobile Banking, RTGS/NEFT,
Phone Banking, Internet Payment Gateway (IPG), Contact
Centres etc. In addition to this, the e-banking department of
your Bank looks after Depository Services, Cash Management
This year, your Bank introduced different variants of Debit Cards
i.e. Maestro PIN Debit Card and RuPay Debit Card. In addition
to this, your Bank also launched a new variant of Pre-paid Card
i.e. Baroda Travel Easy US Dollar Travel Card.
Also, Online Trading facility for Retail customers of your Bank
was launched in July 2012.
The performance of various sections under the e-Business
Department during FY13 is summarised below.
ATM/DEBIT Card Operations
Addition during the year
No. of ATMs operationalised
No. of Debit Cards Issued (lakh)
New Initiatives & Achievement during FY13
a) Maestro PIN Debit Card: Launched in April’12
b) RuPay Debit Card : Launched in September’12
c) Onsite ATM – Installation of Cheque Drop Box in all onsite
d) Issuance of debit cards in Nagrik Bachat Khata with effect
from 5th Dec, 2012.
Baroda Connect (Internet Banking)
during the year
No. of Users
No. of A/cs. Linked
New Initiatives during FY13
a) Credit/transfer to loan account through Baroda Connect.
b) Online FDR for NRIs/PIO enabled.
c) Online payment of premium of India First Insurance
No. of Inward Transactions
No. of Outward Transactions
Avg Transactions per
day (Inward) –during
last month i.e. March
Avg Transactions per
day (Outward) – during
last month i.e. March
Baroda Cash Management Services
- During FY13, the total number of transactions in BCMS
was 30.91 lakh as against 14.19 lakh during FY12, with
a total turnover was Rs.27,480.62 crore as against Rs
10,355 crore during FY12 and a profit of Rs 97.27 lakh
was earned during FY13.
- The number of customer has increased from 206 as on
31/03/12 to 308 as on 31/03/13.
- It is proposed to extend these services to 100 more centres
in a phased manner.
Baroda e-Gateway (Internet Payment Gateway)
- As on 31st March 2013, a total of 148 Merchants were
registered as against 124 as on 31st March 2012 and the
total turnover during FY13 was Rs 50.85 crore. A Profit of
Rs 65.68 lakh was earned during FY13 from this activity.
Other New Initiatives taken during FY13
- Online Trading launched for Retail Customers.
- Baroda Travel Easy US Dollar Travel Card has been
- Debit Card failed transaction complaint registration through
Contact Centre has been started.
- Contact Centre for NRIs has also been launched.
- Standardized Public Grievance Redressal system has been
launched from Contact Centre (for registration of customer
- Recovery of Retail Loans (EMIs) through ECS has been
started on pilot basis in two Zones of your Bank, notably,
the Greater Mumbai and Northern Zones in April 2013.
- Your Bank is ready for a pilot launch of National Automated
Clearing House (ECS credits).
- The Complaints registration through Contact Centre
(SPGRS Portal) has also been initiated in your Bank.
Proposed Initiatives/Strategies for FY14
- To launch 50 e-lobbies (with ATM, Bulk Note Acceptor, Self
Service Passbook Printer Kiosk, Internet Banking Kiosk,
Cheque Deposit Machine & Phone Banking facility).
- Installation of Self Service Passbook Printer Kiosks in all
Baroda Next Branches.
- To install 50-100 Bulk Note Acceptors.
- Card to Card transfer
- ATM Bill Pay
- Non-Personalized Debit Card
- Biometric ATMs/Debit Card
- NEFT through ATM
- Talking ATM
- Request for Cheque book through ATM
Baroda Connect (Internet Banking)
- Online premature payment of Fixed Deposit Receipt
- Online facility of Saving Bank and Recurring Deposit
- Providing convenient login without one-time-password with
the help of QNA (for registered customers).
- Revamping pages of “Baroda Connect” Corporate portal.
- IMPS payments through Net Banking.
Baroda M-Connect (Mobile Banking)
Baroda Pre-paid Cards
Outbound calls for Recovery and Sales.
Expanded IVR (i.e. Mini Statement, request for account
Human resource Development is a critical element of your
Bank’s overall strategy for ensuring profitable and qualitative
Today, your Bank is endowed with a competent and highly
motivated employee base of around 43,108 people who are
engaged in handling its mammoth business operations.
Your Bank has adopted a very balanced people strategy to
create a composite and responsible Human Resource culture in
the Bank that can drive growth and also adequately face various
challenges of the current times, viz. the large retirements,
massive induction of talent, huge training requirements and
challenges of succession and productivity. A comprehensive
HR strategy and Framework has been drawn up to take care of
all these challenges in an integrated manner through a focused
HR transformation project called Project SPARSH which is
unique and path-breaking in the entire industry.
This journey of HR Transformation was started in August’2011
and over the last one year, various landmark HR initiatives have
been launched in your Bank which are futuristic and designed
to make Bank of Baroda one of the best places to work for its
employees. For this, your Bank wants to create cutting edge
HR policies and processes through which it can become a
role model for all other banks and in the process, leverage the
full potential of its human capital to substantially improve the
Formulation of Talent Management system:
Developing the next line of leaders in the Bank
Your Bank took a big step for developing the next line of
leaders for the future by putting in place a Talent Management
system which proactively identifies future potential leaders
to effectively mitigate the risks arising out of the anticipated
leadership gaps in the next five years and also grooms these
future leaders through a systematic development agenda.
Through a systematic and structured process, the Bank was
able to clearly identify around 15.0% to 20.0% people in specific
scales of officers viz. in Scales III, IV, V and VI as the future
leaders. A grooming plan has been laid down for each of them.
The process is envisaged as an annual exercise so that the
pool of identified people and the various talent management
activities envisioned are continuously reviewed and refined. A
first of its kind “Baroda Annual Leadership Conclave” was
conceptualized to provide the members of the Talent pool to
broaden their perspectives on banking and industry trends and
help them connect and network with their peers and senior
leadership in the Bank, and the first such conclave was held
in Mumbai on 11-12 August, 2012.
Strategic workforce planning and Recruitment
A scientific manpower planning model was developed by
your Bank to estimate manpower needs by level, skills and
by branch. With its help, your Bank has also undertaken the
strategic workforce planning for the next few years to feed into
various other HR functions like recruitment planning, career
progression vacancies and postings & deployment.
Your Bank has put in place a clearly defined Recruitment
strategy which looks at broad-basing recruitment from different
channels, hiring of larger numbers in view of the emerging
requirements as thrown up by the strategic workforce planning
and also articulating a clearly-defined Employer Value
proposition with the acronym “F I R S T” as shown below:
A specially designed ‘Career portal’ has been launched on
the Bank’s website which defines this Value proposition further
with clearly laid out sections related to why your Bank should
be the preferred choice for any prospective applicant, what is
the career path, the recruitment channels available, different
facets of working at Bank of Baroda and testimonials from
Bank’s existing employees. All these strategies are designed
to improve Bank’s Employer Branding significantly.
In order to tackle the challenge of making the large number
of fresh recruits productive in the quickest possible time, your
Bank initiated a very structured “on-boarding programme”
consisting of both functional and cultural components which
enabled them to be work-ready quickly and also helped in their
cultural assimilation within the Bank.
“Baroda Manipal School of Banking”
The Baroda Manipal School of Banking is a special initiative
taken jointly by Bank of Baroda and Manipal Global education
to train students for a Banking career in Bank of Baroda on a
“first-day, first-hour” productivity model. The students undergo
a focused one-year programme which is tailored to the Bank’s
requirements and which leads to the award of a post-graduate
diploma in Banking and Finance, before they are absorbed in
your Bank as Probationary officers.
This innovative Resourcing channel was initiated during the year
FY12 but after completing the one year course, the students
have started joining the Bank from FY13 onwards. Around three
batches of students numbering 526 have already joined the
Bank while another four batches of students numbering around
864 are undertaking the said one-year course at present.
Capability Building Initiatives
With the objective of bringing the desired
focus and developmental orientation, your
Bank rebranded its training system as
“Baroda Academy” and launched various
training initiatives under this Baroda Academy
umbrella in order to create a learning
organization, help in better grooming and
development of its people and thereby significantly improve
On the processes side, several landmark initiatives were
introduced like publication of a comprehensive annual training
calendar, introduction of self-nominations as an additional
channel of training nominations, introduction of the system of
training credits, introduction of tests at the end of every training
program, creation of a pool of expert practitioners as Associate
Faculty, enhancement and standardization of course content,
drive for building a directory of Case Studies for use in training
programmes, preparation of a Training policy, Training Manuals,
etc. All these initiatives have brought about a renewed focus to
the Training and development function and helped in making
training a very potent tool for human capital development in the
Bank. Various IT tools have been put in place to streamline the
training processes and enable large-scale implementation of
all the training initiatives.
On specific capability building initiatives, your Bank has, in line
with the renewed focus given to training, carried out substantial
training and developmental activities during FY13, which
included comprehensive grooming programmes in the area of
Credit, Forex, Dealings, Branch Management, Planning, Risk
Management, etc. besides soft skills programmes and ensuring
all-round development and grooming of young officers and new
recruits. Your Bank conducted 2,198 training programmes inhouse
(through its network of 12 Training Centres across the
country, one IT training center and an Apex Training College
at Ahmedabad) and thereby trained 43,465 people during the
year. Besides, your Bank also sent around 2015 employees for
undergoing training in various reputed external training institutes
of the country and even abroad. As part of the overall grooming
plan for the Talent pool members, customized programmes
were conducted through specialized external training institutions
covering specific developmental areas.
Select Deputy General Managers and Assistant General
Managers of your Bank were sent to undergo a Top
Management programme at one of India’s best B-Schools viz.
ISB, Hyderabad whereas in another initiative, your Bank trained
an additional 150 specially identified people across the Bank to
undergo a focused Mentoring programme so that they could act
as ‘mentors’ to newly recruited officers, taking the total number
of trained mentors in the Bank to around 500.
Leadership Development (Project UDAAN)
Taking into account the critical need for building leadership
competencies in people, your Bank had launched a
comprehensive leadership development program named
as ‘Project UDAAN’ in FY12, covering Branch Heads of all
Urban/Metro Branches and all Assistant General Managers
and Deputy General Managers with the objective of creating
leaders for the future.
The programme was structured around three modules of
leadership viz. ‘Leading Self’, ‘Leading Others’ and ‘Leading
Business’ and each of the three modules are being addressed
through a combination of off-site forum events and coaching
clinics. The programme covered around 960 participants
across seven zones of your Bank during the year FY12 and
the same was continued in FY13 to cover an additional 760
more participants in another five batches. Such a massive and
comprehensive leadership development effort is first of its kind
for an Indian state-owned Bank.
Implementation of HR Technology
Your Bank has created a very comprehensive HR technology
platform covering HRM, Training, Payroll & Leave modules
christened as the Human Resources Network for Employee
Services (HRNes). This technology platform has enabled
automation of various HR functionalities and various modules/
various new processes were automated/ implemented during
Your Bank has been undertaking focused hiring efforts on
a sustained basis year on year, to cater to superannuation,
sustained business growth and rapid Branch expansion.
Various recruitment exercises were undertaken during the
year to address the emerging manpower requirements in your
Bank. Recruitment of Specialist officers, probationary officers,
recruitment of young MBAs directly from the campuses of
renowned Business Schools were initiated to meet the needs
of your Bank, both in terms of replacements for normal attrition
and factoring in the business growth needs. Your Bank recruited
1,246 Officers in various Grades/Scales (both Generalists &
Specialists), 1,731 Clerks and 700 Subordinate staff members
during FY13. The recruitment process is continued in the year
2013-14 also with various recruitment projects underway for
filling up almost 2,800 posts of officers and 3,500 posts of clerks.
Framework for Career Progression
Special efforts were made during the year under review to
fulfill the growing aspirations of the employees for faster
career progression, thereby, motivating employees for higher
productivity. Your Bank has been regularly promoting people in
all grades / scales, year after year, without a break, in order to
keep on continuously rewarding its top performers and make
them assume higher responsibilities faster. In keeping with this
trend, a large number of promotion exercises were undertaken
during FY13 also resulting in the elevation of around 3,793
people within the Bank in all cadres/grades/scales, as
depicted in the table below.
Sub-Staff to Clerk
Clerk to Officer
JM-I to MM-II (Officer to Manager)
MM-II to MM-III (Manager to Sr Manager)
MM-III to SM-IV (Sr. Manager to Chief Manager)
SM-IV to SM-V (Chief Manager to Asstt. Gen.
SM-V to TEG-VI (Asstt. Gen. Manager to Dy. Gen.
TEG-VI to TEG-VII (Dy. Gen. Manager to General
Special Thrust on Development of SC/ST/Other
Your Bank is committed to the constitutional safeguards and
social objectives for development and welfare of persons
belonging to SCs, STs and other backward classes in the
society. Your Bank is one of those banks in the entire banking
industry that have the highest number of employees belonging
to SCs and STs, which itself shows the commitment of the
Bank towards their development and upliftment. Some of the
highlights of your Bank’s efforts for development and welfare
of people belonging to SCs and STs are enumerated as under.
Reservation in Employment
Your Bank observes all guidelines stipulated by the Government of
India for reservation of posts in employment in All India recruitment
and local recruitment. Around 15.0% posts are reserved for SCs
and 7.5% posts are reserved for STs in all India recruitments
as also for selection to Baroda Manipal School of Banking (i.e.,
another channel of resourcing started by the Bank). For other
recruitments made on regional basis, appropriate percentage
prescribed for various States is being observed. Special efforts
are made like offering pre-recruitment orientation training to SC/ST
applicants for recruitment in your Bank. Relaxation in age limit and
qualifications are given and interviews of SC/ST candidates are
taken on relaxed standards in order to ensure that appointment of
candidates to the reserved posts happens. In the Interview Panel for
recruitment, a member belonging to SC/ST is invariably associated.
Candidates belonging to SC/ST, who are called for interview, are
reimbursed traveling expenses. In addition to providing reservation
in employment, your Bank is also providing reservation and other
enabling mechanisms in career growth and promotions to SC
and ST employees as per the existing guidelines. Pre-promotion
training before participating in promotion exercises is also provided
to these candidates. Around 10.0% of the available residential
accommodation of your Bank is reserved for the SC/ST candidates.
The staff strength and representation of SCs and STs as of 31st
March 2013 is as under.
An exclusive SC/ST Cell in your Bank has been set up to
monitor the reservation and other enabling provisions for SC/
ST employees. An executive in the rank of General Manager
is appointed as Chief Liaison Officer for SC/ST employees to
ensure compliance of various guidelines pertaining to the SC/
ST employees. A Liaison Officer for SC/ST has been appointed
in each Zone of the Bank who takes care of all matters and grievance redressal of SC/ST employees of that Zone.
Meeting with SC/ST Welfare Association
With a view to have direct dialogue and review of reservation
and other special provisions for SC and ST, your Bank holds
quarterly meetings with the representatives of SC/ST Welfare
Association of the Bank. Your Bank’s Chairman and Managing
Director and Senior Executives including the Chief Liaison
Officer for SC/ST participate in such meetings.
Bharat Ratna Dr. Babasaheb Ambedkar Memorial
Your Bank has established the “Bharat Ratna Dr. Babasaheb
Ambedkar Memorial Trust” in 1991 for promoting welfare
activities for the benefit of SC/ST employees and their family
members. Apart from scholarships to children of employees
belonging to SC/ST, the Trust also provides scholarship to
needy students belonging to SC/ST community, in general, in
major centres of the country.
Visit of National Commission for Scheduled Castes
The National Commission for Scheduled Castes visited your
Bank at various places during the year as shown in the following
table to review the implementation of the reservation policy of
the Government of India for SCs in your Bank, had discussions
and interactions and examined the level of implementation of
the policies and programmes.
Place of Meeting
The National Commission for SCs for verification of Rosters and
other working service safeguards visited the Bank at Baroda on
05.12.2012 and also at Jaipur on 31.01.2013. The suggestions
and guidance of the Commission are being scrupulously
observed by your Bank.
Various other commissions and parliamentary committees
formed for promoting the welfare of different backward classes
and safeguarding the interest/working conditions of different
sections of society also visited your Bank as per the details
given below and were apprised of the steps taken by the Bank
in implementing all the relevant government guidelines and the
different welfare measures adopted by the Bank to ensure their
overall development and meeting of social objectives.
The National Commission for Safai Karamcharis at Goa on 11.02.2013
Study visit of the Committee on Government Assurances, Rajyasabha (for Persons with disabilities) at Mumbai on 22.01.2013
Meeting with Parliamentary Committee on Welfare of OBCs at Mumbai on 07.02.2013.
Business Process Re-engineering (Project
After almost four years of the BPR-led transformation, your
Bank now stands tall in the Indian Banking space. First ever
Annual Conference of Indian Public Sector Banks on Business
Process Reengineering (BPR) was hosted by Bank of Baroda
in Mumbai on 14 July, 2012, along with Union Bank of India
under the aegis of the Ministry of Finance, Government of India.
Key areas of the “NAVNIRMAAN” Transformation
Your Bank has created the “Baroda-Next” line of branches
with a modular design, clear front/back office separation,
comfortable customer waiting area, suitable frontline
automation and dedicated sales & service teams at all
metro and urban centres.
It has carried out the upgradation of Back Offices through:
- Process Redesign
- Workflow-based Systems replacing Manual process
and use of machines.
- Enlargement (to make room for new work-step
- Your Bank has aggressively rolled out the Baroda-Next
Branches and Back Offices across the country.
- Your Bank has created a Sustainability enabler e.g.
Documentation, Technology enablement, Performance
Management and Training and Re-training.
- Your Bank has rolled out the Sales processes at branch and
enterprise-wide Sales Accountability Model (Baroda-Next
Sales Operating Model).
- Your Bank undertakes periodic customer and Employee
Satisfaction Surveys for impact evaluation.
The BPR performance of your Bank has created a positive
impact both in terms of business growth and customer/
employee satisfaction through the following.
• Baroda-Next Branch- Around 1,382 metro/urban
branches have been rolled out as Baroda Next branches
in your Bank so far.
• Branch Front-end Automation- The Queue Management
System (QMS) & Cheque Deposit Machine (CDS)
machines are installed in 93 and 40 branches, respectively.
• City Back Office (CBO) - Clearing operations have been
centralized for all branches (linked to CBO). Three CBOs
at Mumbai, Ahmadabad and Surat have been automated.
• Regional Back Office (RBO) - Altogether 2,925 and
3,900 branches are linked for CASA opening and PCB
(Personalized Cheque Book) issuance, respectively.
• Credit centralization Pilot (RLF/ SMELF) – The Retail
and SME credit centralization pilot is under progress at
the Loan Factories in Baroda.
• Rollout Sales Operating Model at each Baroda next
branch- The Sales Operating Model at 32 Regions
covering 739 Baroda-Next branches has been rolled out.
• Mid-corporate vertical- Separate Mid-corporate vertical
has been created and 15 Mid-corporate branches have
been opened at important locations.
• Academy of Excellence- Continuous sensitization,
training and capability building at all levels remain an
integral part of the Baroda Next rollout programme. It
involves a Zonal /Regional Kick-off, Branch Meeting; Boot
camp, Branch-based Training, External Sales Trainings
• Sustainability of Navnirmaan Initiatives/Impact- A
certification procedure for Baroda Next branches has
been introduced in terms of which process compliance/
adherence are being evaluated by your Bank’s Internal
inspectors and CSAT/ESAT are being evaluated externally
by the Market Research Agencies.
During FY13, your Bank continued to promote its brand and
various products and services through advertising, customer
engagement programs and in-branch display. In the process,
your Bank endeavoured to use different media vehicles such
as Print, Electronic and OOH apart from supporting the onground
activities undertaken by branches in the Zones/Regions.
The highlights of various marketing/communication activities
undertaken during FY13 are given below.
Your Bank initiated a unique Brand Engagement Program
titled ‘Bank of Baroda Canvass Competition’ on 14th
November 2012 - Children’s Day, to create a platform for
building a long-term relationship with a younger audience as
well as their influencers i.e. parents/teachers. The Competition
was designed to invite entries from school children across the
country on a pre-determined topic and winning entries were
selected on National/Zonal/Regional levels by a select panel of
judges. Your Bank’s mascot i.e. ‘Stickman’ was also leveraged
extensively during the Competition to help establish a brandassociation
with the Target audience. A judicious mix of Print & Radio Media was used in the Campaign to maximise the
number of entries in the Competition. Around cities, where our
Regional Offices are present, were primarily targeted. A total of
1.98 Lakh students representing over 3,000 schools from across
the country participated in the Competition, during a short span
of 45 days, giving your Bank an opportunity to engage with
them in the near future.
Your Bank undertook various Product Promotion Campaigns
to promote its products and services amongst target audience
through advertising across different geographies. The focus
was on providing information on various products and services,
particularly Savings Deposits, Current Deposits, NRI Deposits,
Home Loan, Car Loan, SME Loans and Alternate Delivery
Channels through judicious use of various media vehicles.
Information relating to expansion of branch network, both
domestic and overseas, was also given due publicity largely
through print medium which helped in enhancing your Bank’s
brand image & visibility.
Your Bank also took the initiative of educating its customers
through publication of special literature on Alternate Delivery
Channels and products & services relating to SME segment.
It also participated in various events such as Pravasi Bhartiya
Diwas 2013, FICCI – IBA Banking Conference, Dun &
Bradstreet – Exporter’s Excellence Awards, MINT Annual
Banking Conclave, CII’s Manufacturing Summit and Standard
Chartered Mumbai Marathon 2013, among many others to
interact with customers and also for creating brand association
During FY13, as part of its Public Relations task, your Bank had
wide Media Coverage of its activities across the country which
helped in maintaining the Bank’s Brand image.
Your Bank also won several awards from reputed Media Houses
and other Organizations during the Year on various business
parameters, a list of which is appended below.
Awards and Industry Recognition for Bank of Baroda
Your Bank received several awards during FY13, for its
consistent outstanding and all-round performance (both
business and financial), superior management, dedication to
excellence and contribution to rural economy and financial
Given below are a few select awards won by Bank during the
Bloomberg UTV Financial Leadership Award –Best PSU
Bank – 07.04.012, Mumbai
Best CIO Award of BFSI sector from Institute of Public
Enterprises, 2012 – June, Hyderabad
Reserve Bank Rajbhasha Shield – 29.06.2012, Mumbai
a) First Prize in Region A
b) Second Prize in Region B
c) Consolation Prize in bilingual house journal – Bob
- The Sunday Standard FINWIZ 2012 Awards – 20.08.2012,
- Best Indian Bank – Large (Runner Up)
- Best Public Sector Banker – Large (Runner Up)
- Dun & Bradstreet – Polaris Financial Technology Banking
Awards – 24.08.2012, Mumbai
a) Best Public Sector Bank under the category Global
b) Overall Best Public Sector Bank
- Banking Technology Award-2011 by IBA – 27.08.2012,
a) Use of Technology in Training & e-learning – Winner
b) Best Customer Relationship initiatives – 1st Runner
c) Best use of Business Intelligence – 1st Runner up
d) Best use of mobility tech in Banking – 2nd Runner up
e) Best Risk management & Security initiatives – 2nd
- Silver Trophy for effective implementation of Automated
storage Management & Oracle RAC from SKOCH Digital
Inclusion Award- 2012, 04.09.2012, New Delhi
- Business India Best Bank Award 2012 – 14.09.2012,
- Indira Gandhi Rajbhasha Shield Competition, New Delhi
a) First Prize – 14.09.2012
b) Second Prize for Akshayyam in Hindi House – Journal
- (Association of Business Communicators of India) ABCI
Awards 2012, 19.10.2012
a) Special Column (English) - Bobmaitri, Silver Trophy
b) Special Column (Language) – Akshayyam, Silver Trophy
c) Corporate Web-site – Bank of Baroda website, Silver
- Forbes India Leadership Award – Best CEO Public Sector, 28.09.2012, Mumbai to Shri M D Mallya
- CNBC TV18 – ‘India Best Banks and Financial Institutions
Award 2012’ – Best Public Sector Bank, 17.10.2012,
Mumbai presented to Shri M D Mallya
- Best Large Bank 2012 – Business World November 26th
- Best Large Bank 2012 – Business Today – KPMG –
- Best Public Sector Bank Award by State Forum of Bankers
Club, Kerala, December 2012, at Ernakulam
- Business Standard Banker of the Year (2011-12) was
conferred on Shri. M D Mallya, Former CMD of Bank of
Baroda in January 2013. Conferred on 23.03.2013.
- My FM Stars of the Industry Award for Excellence
in Banking (PSU) – Silver awarded by Radio FM on
14.02.2013 in Mumbai
- My FM Stars of the Industry Award for Excellence in
Home Loan Banking – Bronze awarded by Radio FM on
14.02.2013 in Mumbai
- FE Best Banks Award 2011-12 for ‘Best PSU Bank’
awarded by Financial Express Group on 20.02.2013 in
- “Strategic Communication and Leadership Award” by Asian
Confederation of Business and World CSR Congress at
Corporate Affairs Award Ceremony, Mumbai on 18/02/2013
- The Most Efficient Public Sector Bank by Dalal Street
Investment Journal on 23/03/2013.
- National Award for 2011-12, conferred for excellence in
the field of Khadi & village Industries by Khadi & Village
Industries Commission on 3rd April,2013
Premises Re-Engineering and Ambience
Given below are the major achievements of your Bank in the
area of “Premises re-engineering and ambience enhancement”
during the year FY13.
- Your Banks’ administrative office cum residential complex
at Jamshedpur was completed. It was equipped with
ultra modern gadgets and systems with energy efficient
equipments, rain water harvesting system and eco- friendly
materials. Your Bank’s presence by this building in the
Steel City is admired by one and all. Now, it has become
landmark building of Jamshedpur city.
- As per the directives from Ministry of Finance, your Bank
linked its Corporate Office and all Zonal and Regional
Offices through State-of-the Art Video Conferencing
systems with MPLS Connectivity. Interaction of functional
heads through VC has expedited the decision making
process in a more efficient and cost effective manner.
- Your Bank is also marching towards technology based
initiatives in the form of e-tendering, e-procurement, etc., and
implemented these initiatives in a phased manner during FY13.
All payments to vendors are being made through RTGS/
NEFT or credit to beneficiary account.
- In tune with your Bank’s policy to have its administrative
offices in owned premises, your Bank purchased land at
Bangalore (Karnataka), Hyderabad (AP), Faizabad (UP)
Indore (MP), Udaipur, Haldwani (Uttrakhand ), Dehradun
(Uttrakhand), Jaipur (Rajasthan) and New Raipur
(Chhatisgarh) for construction of commercial buildings.
- Looking to the ever increasing rentals, a need is being felt
to use every nook and corner of the available premises.
Layouts were revisited while renovation and furnishing of
branches/offices was done by introducing eco-friendly and
ergonomically designed sleek furniture items. The area
norms for acquisition of the premises were also reviewed
- To have uniformity in systems and procedures pan-India,
Premises Policy Guidelines, Constructions Manual,
Refurbishment Manual were formulated and agencies
for modular and chairs were also identified for quick
procurement of the furniture items and to have similar and
identical design to get aesthetically pleasant look.
Projects Implemented during FY13
Your Bank constructed a commercial complex at Mylapore,
Chennai having Zonal Office, Branch & Currency Chest.
A residential complex at Cenotaph Road, Chennai was
constructed wherein there were three 3-BHK flats, twelve
2-BHK and one General Guest house, and state of the art
VIP guest house.
Your Bank constructed a residential complex at East of
Kailash, New Delhi wherein there are 14 executive flats
(four 3BHK flats, ten 2BHK flats) and one top executives/
The construction of commercial cum residential complex
at (Tata Nagar) Jamshedpur was wherein there are 23
Projects under implementation
The construction of residential complex at Janakpuri, New
Delhi of your Bank is in the advanced stage of completion.
The construction of office building cum currency chest at
Varanasi is also nearing the completion.
The construction of Multi storey integrated office building
at Jaipur is in the advanced stage of completion.
The construction of BSVS at Ajmer, Banswada, Dungarpur,
Pratapgarh are also under implementation.
The construction of administrative and residential buildings
at New Raipur is under implementation.
The construction of residential cum commercial complex
at Indore (MP) is under implementation.
Future Plans for Estate Management
To facelift the Bank’s Building at Parliament Street, New
To redevelop the Ram Nagar Premises at Coimbatore, to
have optimum utilisation of available space for Branch/
To construct an own building for Disaster Recovery Site at
To renovate the Bank of Baroda Institute of Information
Technology at Gandhinagar (Gujarat)
To undertake the redevelopment of Bhandup Staff Quarters
building, Mumbai, thereby to construct about 138 residential
flats for transferee Officers/ Executives.
To undertake the redevelopment of Jogeshwari Staff
Quarters, Mumbai, to construct a building for residential
and commercial use.
To construct a training centre at Bangalore.
To construct an Administrative Regional Office Building at
To construct the BSVS at various centres across India as
per the directives from the Government of India.
Domestic Subsidiaries and Associates
The performance of “Subsidiaries, Joint Venture & Associates”
of Bank of Baroda was satisfactory during FY13.
The BOBCARDS Limited turned around during FY11 and
made profit during FY12 and FY13. The Company has focused
on all qualitative aspects of business development, which has
resulted in better profitability, quality card base and ME base.
The Company has introduced a range of Platinum Cards with
premium features like added privileges & offers. The Company
has drawn up aggressive plans for enlargement of Card &
The BOB Capital Markets Ltd. has been activated by recruiting
a professional team. The focus is on investment advisory
services, Debt & Equity Syndication and Capital market
activities. The Company commenced institutional broking
business and has also launched an Online Institutional Trading
Platform from October 2009. The Company commercially
launched an On-Line Retail Trading platform on July 20, 2012.
The Nainital Bank Ltd. was promoted by Late Bharat
Ratna Pandit Govind Vallabh Pant and others and became
Associate Bank of Bank of Baroda in the year 1973. Today, the
shareholding of Bank of Baroda in Nainital Bank Ltd. is 98.57%
and is a subsidiary of the Bank. The State of Uttarakhand,
vide its communiqué dated August 3, 2012, has notified that
The Nainital Bank Limited be treated at par with other PSU
Banks. The Bank has initiated branch expansion initiatives
and has already established a Regional Office at Dehradun
and has aggressive plans to ramp up its scale of operations.
The Bank has launched e-stamping facility in 15 branches and
has initiated several new IT initiatives such as Mobile banking
& e-banking, etc.
Baroda Pioneer Asset Management Company Ltd. is a joint
venture with Pioneer Global Asset Management SpA and is
in its fifth year of operation. During the year under review, the
Company was able to strengthen its AUM significantly which
rose by 75.0% on year on year basis as of Mar’13 and was
able to add one lakh folios despite weak sentiments prevailing
in Debt & Equity markets. The key to this growth was strong
focus on the institutional segment which helped the Company
grow its debts & money market products coupled with focus on
Systematic Investment Plans for retail investors. Several new
NFOs were launched during the year and two new channels
were added to take care of the third party products. The
Company has increased the number of investor servicing points
from 77 to 203 during the year under review.
IndiaFirst Life insurance Company Ltd. is a joint venture
company with Andhra Bank and Legal & General Group, U.K.
It commenced its business operations on 16th November 2009
and has received an overwhelming response for its products
across the country. The Company has outperformed the industry
by having maximum year on year growth of 34.0%. The
Company was the 22nd entrant in the Life Insurance space &
has become the 8th largest player among private players within
a span of less than four years. The IndiaFirst has launched
MagicBoard, a one- of- its kind portable sales process tool.
The Company has won Model Insurer Award (Asia) for the 3rd
India Infradebt Ltd. is a joint venture company with ICICI
Bank Ltd., ICICI Home Finance Company Ltd., Citicorp
Finance (India) Ltd. and Life Insurance Corporation of India.
The Company was incorporated on Oct 31, 2012 in Mumbai
and has been issued registration certificate No. N-13.022039
dated 08.02.2013 by the RBI to operate as an infrastructure Debt Fund – Non Banking Financial Company (IDF-NBFC).
The Company’s principal activity is to refinance part of the debt
liabilities of the project companies.
| (Rs lakh)
Entity (with date of
BOB Capital Markets
Ltd., 11 Mar, 1996
BOBCARDS Ltd., 29
Baroda Pioneer Asset
Mgmt Co. Ltd., 5 Nov,
IndiaFirst Life Insurance
Co. Ltd., 19 June, 2008
Nainital Bank Ltd., 31
|India Infradebt Ltd.
Implementation of Official Language (OL) Policy
During the period under review, your Bank made significant
progress with regard to implementation of Official Language
policy and ensured compliance of various statutory requirements
of Official Language Act/Official Language Rules. Your Bank
could achieve all major targets set by the Government o India
under its Annual Implementation Programme and fulfilled the
assurances given to the Committee of Parliament on Official
In recognition of your Bank’s outstanding performance, the
Bank was awarded 1st prize in Indira Gandhi Rajbhasha Shield
by Shri Pranab Mukherjee, Hon’ble President of India. Your
Banks’ in-House Hindi Magazine-Akshayam was also awarded
Second prize at the hands of Shri Pranab Mukherjee, Hon’ble
President of India for the year FY12.
During the year FY13, your Bank’s In-House Magazine
‘BOBMAITRI’ and Hindi magazine ‘AKSHYAAM’ got 3rd prize
in the RBI Rajbhasha shield Competition. The Town Official
Language Implementation Committees functioning at Jaipur
and Baroda under your Bank’s convenorship were awarded 1st prize for their outstanding performance by the Department
of Official Language, Government of India. Your Bank’s Zonal
Office at Pune, Regional office at Jodhpur and Zonal office at
Ahmedabad too got 1st, 2nd and 3rd prizes, respectively. Your
Bank’s in-House Hindi Magazine ‘Akshayyam’ was awarded
with ‘Gold Prize under Indian Language Publication category
by the ‘ABCI’ and ‘Apni Baat’ with silver prize under special
column (Language) category.
In addition to the above two magazines, a publication of your
Bank’s Hindi web Magazine Baroda Hindi.com has been
popularsing the use of Hindi language through technology.
The Hindi magazines are regularly published by different Town
Official Language Implementation Committees functioning
under your Banks’ convenorship.
The Town Official Language Implementation Committees
functioning under the convenorship of your Bank discharged
their responsibilities excellently. During the year, three newly
constituted Town Official Language Implementation Committees
started functioning at Jalandhar, Varanasi and Haldwani under
your Bank’s Convenorship and now your Bank is the Convenor
of nine Town Official Language Implementation Committees.
The Third Sub-Committee of Parliament on Official Language
visited your Bank’s branches at Jaisalmer, Vikas Nagar and
Rudraprayag and appreciated the efforts put in by the Bank in
the area of Official Language Implementation.
Your Bank was able to come out with a Programme to generate
and print pass books and account statements in Hindi at the
branches situated in linguistic regions A and B, through Finacle
System on the CBS platform.
During the year under review, your Bank started printing the
ATM slips in Hindi for the convenience of customers and
introduced a display of ATM screen in Gujarati and Marathi
languages in addition to Hindi and English. During the year,
‘Pragati online package’ was also developed for consolidation
of quarterly progress report regarding the use of Hindi and
online submission of Hindi reports.
During FY13, Hindi version of your Bank’s Book of Instructions
was uploaded on the Bank’s Intranet. During the year FY13,
your Bank published two books in Hindi namely “Financial
Inclusion & Indian Languages” and “Samvaad” for prorogating
the use of Hindi in the Indian banking industry.
Board of Directors
Shri S. S. Mundra appointed as the Chairman and
Managing Director of the Bank w.e.f. 21.01.2013 by the
Central Government u/s 9 (3) (a) of The Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 to hold
the office till 31.07.2014 i.e. the date of his superannuation
or until further orders, whichever is earlier.
Shri P. Srinivas appointed as a Whole Time Director
(designated as Executive Director) w.e.f. 18.06.2012 by
the Central Government u/s 9 (3) (a) of The Banking
Companies (Acquisition and Transfer of Undertakings)
Act, 1970, to hold office up to 30.06.2016 i.e. the date of
his superannuation or until further orders, whichever is earlier.
Shri Sudhir Kumar Jain appointed as a Whole Time Director
(designated as Executive Director) w.e.f. 18.06.2012 by the
Central Government u/s 9 (3) (a) of The Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 for a
period of five years, or until further orders, whichever is earlier.
Shri Ranjan Dhawan appointed as a Whole Time Director
(designated as Executive Director) w.e.f. 01.11.2012 by The
Central Government u/s 9 (3) (a) of The Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970, to hold
office up to 30.09.2015 i.e. the date of his superannuation or
until further orders, whichever is earlier.
Shri n. S. Srinath, a Whole Time Director (designated as
Executive Director) ceased to be a Director with effect from
01.06.2012 on completion of his term.
Dr. (Smt.) Masarrat Shahid, a part time non- official
Director ceased to be a Director with effect from 29.10.2012
on completion of her term.
Shri Rajiv Kumar Bakshi , a Whole Time Director (designated
as Executive Director), ceased to be a Director with effect from
01.11.2012 on completion of his term.
Shri M. D. Mallya, Chairman and Managing Director, ceased
to be a Director with effect from 01.12.2012 on completion of
Directors’ Responsibility Statement
The Directors confirm that in the preparation of the annual
accounts for the year ended March 31, 2013:
- The applicable accounting standards have been followed
along with proper explanation relating to material
departures, if any;
- The accounting policies framed in accordance with the
guidelines of the Reserve Bank of India, were consistently
- Reasonable and prudent judgment and estimates were
made so as to give true and fair view of the state of affairs
of your Bank at the end of financial year and of the profit
of your Bank for the year ended on March 31, 2013;
- Proper and sufficient care was taken for the maintenance of
adequate accounting records in accordance with the provisions
of the applicable laws governing banks in India; and
- The accounts have been prepared on a going concern
The Directors express their sincere thanks to the Government
of India, Reserve Bank of India, Securities and Exchange
Board of India, other regulatory authorities, various financial
institutions, banks and correspondents in India and abroad for
their valuable guidance and support.
The Directors acknowledge with appreciation the assistance
and cooperation extended by all stakeholders of your Bank like
customers, shareholders and well wishers in India and abroad.
The Directors place on record deep appreciation for the hard
work and dedication of the members of your Bank’s staff at
different levels, which enabled your Bank to record high quality,
consistent growth year after year despite economic challenges
and consolidate its position as one of the premier banks in the
For and on behalf of the Board of Directors,
S. S. Mundra
Chairman & Managing Director