95
1 INSTITUTE OF MANAGEMENT STUDIES GHAZIABAD A PROJECT REPORT ON TOPIC: HR PRACTICES AND VARIOUS BUSINESS STRATEGIES OF BANK OF BARODA In SUBJECT: PPSP Submitted to: Prof. Soumen Mukherjee. Date of Submission: 4-01-2010.

Hr Practice in Bank of Baroda

Embed Size (px)

Citation preview

Page 1: Hr Practice in Bank of Baroda

1

INSTITUTE OF MANAGEMENT STUDIES

GHAZIABAD

A PROJECT REPORT ON

TOPIC: HR PRACTICES AND VARIOUS BUSINESS

STRATEGIES OF BANK OF BARODA

In

SUBJECT: PPSP

Submitted to: Prof. Soumen Mukherjee.

Date of Submission: 4-01-2010.

Page 2: Hr Practice in Bank of Baroda

2

INSTITUTE OF MANAGEMENT STUDIES

GHAZIABAD

A PROJECT REPORT ON

TOPIC: HR PRACTICES AND VARIOUS BUSINESS

STRATEGIES OF BANK OF BARODA In

SUBJECT: PPSP

Submitted to: Submitted by:

Prof. Soumen Mukherjee Jyoti Varma (BM-

09087)

Kalap Sen(BM-

09089)

Manisha Agarwal(BM-09100)

Mayank Mohan(BM-09106)

Naveen Pandey(BM-09113)

Neelu Chaudhary(BM-09115)

Neha Rathi(BM-09119)

Nikhil Singh(BM-09124)

Nitya Singh(BM-09130)

Nupur Sharma(BM-09132)

Pradeep Sharma(BM-09142)

Page 3: Hr Practice in Bank of Baroda

3

Pratik Dhir(BM-09147)

Prerna Paul(BM-09151)

Priyanka Gulati(BM-09152)

Rashmi Amita(BM-

DECLARATION

We hereby declare that this submission is our own work & to the best of our knowledge

& belief, it contains no material previously published or written by another person nor

material which to a substantial extent has been accepted for the award of any other

degree or diploma of the university or other institute of higher learning except where due

acknowledge has been made in the text.

Jyoti Varma(BM-09087) Date: - 2nd

January 2010

Kalap Sen(BM-09089)

Manisha(BM-09100)

Mayank Mohan(BM-09106)

Naveen Pandey(BM-09113)

Neelu Chaudhary(BM-09115)

Neha Rathi(BM-09119)

Nikhil Singh(BM-09124)

Nitya Singh(BM-09130)

Nupur Sharma(BM-09132)

Pradeep Sharma(BM-09142)

Pratik Dhir(BM-09147)

Prerna Paul(BM-09151)

Priyanka Gulati(BM-09152)

Rashmi Amita(BM-09247)

Page 4: Hr Practice in Bank of Baroda

4

CERTIFICATE

This is to certify that the Project entitled “HR Practices of Bank of Baroda ” which is

being submitted by PGDM (Jyoti Varma(BM-09087),Kalap Sen(BM-

09089),Manisha(BM-09100),Mayank Mohan(BM-09106),Naveen Pandey(BM-

09113),Neelu Chaudhary(BM-09115),Neha Rathi(BM-09119),Nikhil Singh(BM-

124),Nitya Singh(BM-091),Nupur Sharma(BM-09132),Pradeep Sharma(BM-

09142),Pratik Dhir(BM-09147), Prerna Paul(BM-09151),Priyanka Gulati(BM-

09152),Rashmi Amita(BM-09247) student of IMS, Ghaziabad is a record of the

candidate group’s own work carried by them under my supervision. The matter embodied

in this report is original and has not been submitted for the award of any other degree.

Project Guide:

Prof. Soumen Mukherjee Date: 04-01-2010.

Page 5: Hr Practice in Bank of Baroda

5

PREFACE

Gross profit of the organization is directly influenced by the marketing strategy and

practices followed by the organization and it has always been one of the most important

aspect of the succeeding process. However in the recent age Marketing is the core

function of any organization to be put in sight of administration and always need

standardized manual and digital backup. HR department has a strong correlation and

harbored link with marketing and rest of the departments. HR is also responsible equally

for the better output, services and productivity of any organization. Both these factors are

considered immense in BOB.

A century long sustainability of BOB is successful blend of the HR and marketing

practices. BOB planned to expand its wing internationally within 40 years of

establishment in the decade of independence, that proves BOB has been following a

planned HR strategy from its day of establishment. Within 50 years of establishment

BOB got one of eminent organization of that time ‘The Hind’. Dissolution shows the

constructive strength of HR practices followed by the BOB. Economically effective

presence of BOB in more than 25 nations is another proof of follow up of class practices

in HR adopted by BOB. Aims and objective in the declaration of BOB are demonstrative

elements of compactness of HR practices of BOB.

This report inculcate various aspects of infrastructural complexity and strength of BOB

including a specified emphasis on the HR practices followed by BOB.

Page 6: Hr Practice in Bank of Baroda

6

ACKNOWLEDGEMENT

We would sincerely like to thank our project guide Prof. Soumen Mukherjee, for

enabling us to successfully carry out the project work through his constant guidance, for

endless support and continuous involvement in the project.

It was really worthwhile to receive help from Mr. S. K. Luthra, Senior Branch

Manager of Bank of Baroda, who in person was always present to help us out anytime

we felt his need. Without his constant support this project would not have been

acknowledged as it is now.

Finally, we owe a great deal of sincere thanks to the faculty members who have been of

great support from time to time along with our friends, who kept encouraging us all

along.

Page 7: Hr Practice in Bank of Baroda

7

TABLE OF CONTENTS

SR.NO. CHAPTER PAGE

NO.

1. ABSTRACT 1

2. QUESTION 2

3. LOGO 3

4. INTRODUCTION 4

6. HR MISSION 21

7. TRAINNING 27

8. PROMOTION 28

9. COMPETITORS 52

10. BUSINESS STRATEGIES 54

11. ORGANIZATIONAL STRUCTURE 68

12. LITERATURE REVIEW 71

13. QUESTIONS ASKED 73

14. EXERPTS 77

15. CONCLUSION 80

16. RECOMMENDATIONS 81

17. APPENDIX 82

18. LIST OF REFRENCES 85

19 BIBLIOGRAPHY 86

20 GLOSSARY 87

INDEX

Page 8: Hr Practice in Bank of Baroda

8

ABSTRACT

India is being widely recognized as one of the most exciting emerging economics

in the world. Besides becoming a global hub of outsourcing, Indian firms are

spreading their wings globally through mergers and acquisitions. During the first

four months of 1997, Indian companies have bought 34 foreign companies for

about U.S. $11 billion dollars. This impressive development has been due to a

growth in inputs (capital and labor) as well as factor productivity. By the year

2020, India is expected to add about 250 million to its labor pool at the rate of

about 18 million a year, which is more than the entire labor force of Germany.

This so-called ‘demographic dividend’ has drawn a new interest in the Human

Resource concepts and practices in India. This paper traces notable evidence of

economic organizations and managerial ideas from ancient Indian sources with

enduring traditions and considers them in the context of contemporary

challenges.

Page 9: Hr Practice in Bank of Baroda

9

QUESTION:

Given the fact that a brand name can be worth almost half of a

companies value, the effective use of brands is extremely

important. As Adrea Dunham of Unique Value International puts

it, reliability associated with the brand becomes “ a repository of

knowledge about the things that people are going to buy or use”

(U.S. news and world report, 9 October 2000.). What are some

do’s and don’ts as far as brand maintenance goes? From the

marketing stand point, what should companies do to insure that

their brands are effective? Keeping in mind the structure of a

standard report, prepare a report based on the above mentioned

questions.

Page 10: Hr Practice in Bank of Baroda

10

Page 11: Hr Practice in Bank of Baroda

11

INTRODUCTION

Bank of Baroda (BSE: 532134) (BoB) is the third largest Public Sector bank in India,

after State Bank of India and Punjab National Bank. BoB has total assets in excess of Rs.

2.27 lakh crores, or Rs. 2,274 billion, a network of over 3000 branches and offices, and

about 1100+ ATMs. It offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and through its

specialized subsidiaries and affiliates in the areas of investment banking, credit cards and

asset management.

Maharajah of Baroda Sir Sayajirao Gaekwad III founded the bank on July 20, 1908 in the

princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial

banks of India, was nationalized on 19 July 1969, by the Government of India.

Page 12: Hr Practice in Bank of Baroda

12

HISTORY 1908-1958

1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB).

1910: BOB established its first branch in Ahmadabad.

1953: BOB established a branch in Mombasa and another in Kampala.

1954: BOB opened a branch in Nairobi.

1956: BOB opened a branch in Dar-es-Salaam.

1957: BOB established a branch in London.

1959: BOB acquired Hind Bank

1960s 1961: BOB merged in New Citizen Bank of India. This merger helped it increase its

branch network in Maharashtra.

BOB also opened a branch in Fiji.

1962: BOB opened a branch in Mauritius.

1963: BOB acquired Surat Banking Corporation in Surat, Gujarat.

1964: BOB acquired two banks, Umbergaon People’s Bank in southern Gujarat and

Tamil Nadu Central Bank in Tamil Nadu state.

1964: BOB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistan war. It

is unclear when BOB had opened the branch.

1965: BOB opened a branch in Guyana.

1967: The Tanzanian government nationalized BOB’s three branches there and

transferred their operations to the Tanzanian government-owned National Banking

Corporation.

1969: The Government of India nationalized 14 top banks, including BOB.

BOB incorporated its operations in Uganda as a 51% subsidiary, with the government

owning the rest.

Page 13: Hr Practice in Bank of Baroda

13

1970s and 1980s 1972: BOB acquired Bank of India’s operations in Uganda.

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

1975: BOB acquired the majority shareholding and management control of Bareilly

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

Since then, Nainital Bank has expanded to Uttarakhand State.

1976: BOB opened a branch in Oman and another in Brussels. The Brussels branch was

aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery

having business in Antwerp, a major center for diamond cutting.

1978: BOB opened branch in New York and another in the Seychelles.

1979: BOB opened a branch in Nassau, the Bahamas.

1980: BOB opened a branch in Bahrain and a representative office in Sydney, Australia.

BOB, Union Bank of India and Indian Bank established IUB International Finance, a

licensed deposit taker, in Hong Kong. Each of the three banks took an equal share.

1985: BOB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO

(Zambian government; 40%) established Indo-Zambia Bank (Lusaka).

BOB also opened an Offshore Banking Unit (OBU) in Bahrain.

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

1990s 1990: BOB opened an OBU in Mauritius, but closed its representative office in Sydney.

1991: BOB took over the London branches of Union Bank of India and Punjab & Sind

Bank (P&S). P&S’s branch had been established before 1970 and Union Bank’s after

1980. The Reserve Bank of India ordered the takeover of the two following the banks'

involvement in the Sethia fraud in 1987 and subsequent losses.

1992 BOB incorporated its operations in Kenya into a local subsidiary with a small

tranche of shares quoted on the Nairobi Stock Exchange.

1993: BOB closed its OBU in Bahrain.

1996: BOB Bank entered the capital market in December with an Initial Public Offering

(IPO). The Government of India is still the largest shareholder, owning 66% of the bank's

equity.

Page 14: Hr Practice in Bank of Baroda

14

1997: BOB opened a branch in Durban.

1998: BOB bought out its partners in IUB International Finance in Hong Kong.

Apparently this was a response to regulatory changes following Hong Kong’s reversion

to the People’s Republic of China. The now wholly owned subsidiary became Bank of

Baroda (Hong Kong), a restricted license bank.

BOB also acquired Punjab Cooperative Bank in a rescue.

1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly

had 64 branches, including four in Delhi.

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

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

2000s 2000: BOB established Bank of Baroda (Botswana).

2002: BOB acquired Benares State Bank in Benares at the Reserve Bank of India’s

request.

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

2003: BOB opened an OBU in Mumbai.

2004: BOB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by

establishing a subsidiary in Dar-es-Salaam.

BOB also opened a representative office each in Kuala Lumpur, Malaysia, and

Guangdong, PRC.

2005: The Reserve Bank of India (RBI) has approved a joint venture between BOB, Bank

of Maharashtra (BOM), and Oriental Bank of Commerce (OBC) to set up a bank in

Malaysia. The new bank will reside in Kuala Lumpur, which has a large population of

Indians. The initial capital required will be US$78 million; BOB will invest 40%, and the

other two banks will invest 30% each. The JV is awaiting approval from the Malaysian

Central Bank. Bank has built and commissioned its own State-of-the-Art Global Data

Centre (DC) in Mumbai for running its centralized banking solution (CBS) and other

applications in 1900+ branches across India and 20 other counties where the Bank is

operating.

BOB also opened a representative office in Thailand.

2006: BOB established an Offshore Banking Unit (OBU) in Singapore.

Page 15: Hr Practice in Bank of Baroda

15

2007: In its centenary year, BOB's total business crossed 2.09 lakh crores, its branches

crossed 1000, and its global customer base 29 million people.

2008: BOB opened a branch in Guangzhou, China (02/08/2008).

2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to

trade as a bank in New Zealand (2009/09/01)

A saga of vision and mission of enterprise

Vision:

It has been a long and eventful journey of almost a century across 25 countries. Starting

in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate

Centre in Mumbai is a saga of vision, enterprise, financial prudence and corporate

governance.

It all started with a visionary Maharaja's uncanny foresight into the future of trade and

enterprising in his country. On 20th July 1908, under the Companies Act of 1897, and

with a paid up capital of Rs 10 Lacs started the legend that has now translated into a

strong, trustworthy financial body, THE BANK OF BARODA.

It has been a wisely orchestrated growth, involving corporate wisdom, social pride and

the vision of helping others grow, and growing itself in turn.

The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a

bank of this nature will prove a beneficial agency for lending, transmission, and deposit

of money and will be a powerful factor in the development of art, industries and

commerce of the State and adjoining territories."

It is a story scripted in corporate wisdom and social pride. It is a story crafted in private

capital, princely patronage and state ownership. It is a story of ordinary bankers and their

extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of

corporate glory. It is a story that needs to be shared with all those millions of people -

Page 16: Hr Practice in Bank of Baroda

16

customers, stakeholders, employees & the public at large - who in ample measure, have

contributed to the making of an institution.

Mission:

To be a top ranking National Bank of International Standards committed to augmenting

stakeholders' value through concern, care and competence.

BOB Logo

Our new logo is a unique representation of a universal symbol. It comprises dual ‘B’

letterforms that hold the rays of the rising sun. We call this the Baroda Sun.

The sun is an excellent representation of what our bank stands for. It is the single most

powerful source of light and energy – its far-reaching rays dispel darkness to illuminate

everything they touch. At Bank of Baroda, we seek to be the sources that will help all our

stakeholders realize their goals. To our customers, we seek to be one-stop, reliable

partners who will help them address different financial needs. To our employees, we

offer rewarding careers and to our investors and business partners, maximum return on

their investment.

The single-colour, compelling vermillion palette has been carefully chosen, for its

distinctiveness as it stands for hope and energy.

We also recognize that our bank is characterized by diversity. Our network of branches

spans geographical and cultural boundaries and rural-urban divides. Our customers come

from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face for

our brand because it is a universal symbol of dynamism and optimism – it is meaningful

for our many audiences and easily decoded by all.

Our new corporate brand identity is much more than a cosmetic change. It is a signal that

we recognize and are prepared for new business paradigms in a globalised world. At the

same time, we will always stay in touch with our heritage and enduring relationships on

which our bank is founded. By adopting a symbol as simple and powerful as the Baroda

Sun, we hope to communicate both.

Page 17: Hr Practice in Bank of Baroda

17

BOB ETHICS

Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda survived

the crisis, mainly due to its honest and prudent leadership. This financial integrity,

business prudence, caution and an abiding care and concern for the hard earned savings

of hard working people, were to become the central philosophy around which business

decisions would be effected. This cardinal philosophy was over the 94 years of its

existence, to become its biggest asset. It ensured that the Bank survived the Great War

years. It ensured survival during the Great Depression. Even while big names were

dragged into the Stock Market scam and the Capital Market scam, the Bank of Baroda

continued its triumphant march along the best ethical practices.

Page 18: Hr Practice in Bank of Baroda

18

Global Presence of Bank of Baroda Global Presence Australia Bahamas Bahrain Belgium Botswana China Fiji Islands Ghana Guyana Hong Kong Kenya Mauritius Malaysia Seychelles South Africa Singapore Sultanate of Oman Tanzania Thailand Trinidad & Tobago Uganda United Arab Emirates United Kingdom United States of America Zambia

Page 19: Hr Practice in Bank of Baroda

19

Subsidiaries & Joint Ventures

Domestic Overseas

Subsidiary Subsidiary

Bank of Baroda (Botswana) Ltd.

Bank of Baroda (Kenya) Ltd.

Bank of Baroda (Uganda) Ltd.

Bank of Baroda (Guyana) Ltd.

Bank of Baroda (UK) Ltd.

Bank of Baroda (Tanzania) Ltd

Bank of Baroda (Trinidad &

Tobago) Ltd.

Bank of Baroda (Ghana) Ltd.

Representative Offices

BOBCARDS Ltd.

BOB Capital Markets Ltd.

Nainital Bank Ltd.

Bank of Baroda (Thailand)

Bank of Baroda (Malaysia)

Bank of Baroda (Australia)

Associate Associate

Baroda Pioneer Asset Management

Company Ltd

UTI Asset Management Company Ltd

UTI Trustee Company Pvt Ltd

Baroda Uttar Pradesh Gramin Bank

Baroda Rajasthan Gramin Bank

Baroda Gujarat Gramin Bank

Nanital -Almora Kshetriya Gramin

Bank

Jhabua-Dhar Kshetriya Gramin Bank

Indo-Zambia Bank Ltd. (Lusaka)

Page 20: Hr Practice in Bank of Baroda

20

Offices & Branches

Corporate Offices

Head Office

Suraj Plaza 1, Sayaji Ganj,

Baroda 390005

Ph: (0265) 2361852(10lines)

Fax: (0265) 2362395, 2361824, 2361806

Corporate Centre

Bank Of Baroda

Baroda Corporate Centre,

Plot No. C-26, Block G,

Bandra Kurla Complex,

Bandra (East),

Mumbai 400051

Ph: (022) 6698 5000-04 (PBX)

Fax: (022) 2652 1955

Branch Network (as of 1/1/2010)

Area No. of Branches

Metro 555

Urban 627

Semi-Urban 684

Rural 1216

Total (Indian) 3082

Foreign (Overseas) 70

Total (Global) 3152

Controlling Offices

Zonal Offices 10

Regional Offices 43

Human Resources (Staff as of September 2006)

Officers 13525

Clerks 16497

Sub – Staff 8041

Total 38063

Page 21: Hr Practice in Bank of Baroda

21

Business Indicators Key Business Indicators

(Rs. in Crore) 31.03.2009 31.03.2008

Total Deposits 1,92,396.95 1,52,034.12

Total Advances 1,43,985.90 1,06,701.33

Total Investments 52445.88 43870.07

Total Assets 227406.73 179599.52

Net Profit 2227.20 1435.52

Capital Adequacy Ratio

(percentage)

12.88 as per Basel I

14.05 as per Basel II

12.91 as per Basel I

12.94 as per Basel II

Net Non Performing Loans

to Net Advances (percentage)

0.31 0.47

Operating profit to working

funds (percentage)

2.22 1.96

Business Per Employee

(Lacs)

914 704

Dividend History (Percentage)

2009 90

2008 80

2007 60

2006 50

2005 50

2004 65

2003 60

2002 40

2001 40

2000 40

1999 30

1998 30

Page 22: Hr Practice in Bank of Baroda

22

KEY EXECUTIVE

S.No Name Designation

1 Milind N

Nadkarni Director

2 Dharmendra

Bhandari Director

3 A

Somasundar

am

Director

4 Amitabh

Verma Director

5 Maulin A

Vaishnav Director

6 Atul Agarwal Director

7 Ranjit Kumar

Chatterjee Director

8 Deepak B

Patak Director

9 R K Bakshi

Executive

Director

10 Srinath

Executive

Director

Page 23: Hr Practice in Bank of Baroda

23

Page 24: Hr Practice in Bank of Baroda

24

The Initiative

• Marketing Initiatives

The mid-eighties marked the beginning of the shift to a buyers` market. The Bank

orchestrated its business strategies around the centrality of the customer. It diversified

into areas of merchant banking, housing finance, credit cards and mutual funds. A string

of segment specific branches entrenched operations in the profitable markets. Overseas

operations were revamped and structural changes intensified in the territories to cater to

second generation NRIs. Slowly but surely, the move to become a one stop financial

supermarket had been set in motion. Service delivery standards were stipulated.

Technology was adopted to add punch. Employees across the board were inculcated with

the marketing concept. Aggressive marketing became the new business philosophy.

• People Initiatives

Bank of Baroda has always had an immense faith in the infinite potential of its people.

This has been historically demonstrated in its recruitment practices, developmental

initiatives, placement processes and promotion policies. Strategic HR interventions like,

according cross border and cross cultural work exposure to its managers, hiring diverse

functional specialists to support line functionaries and complementing the technical

competencies of its people by imparting conceptual, managerial and leadership skills,

gave the Bank competitive advantage. The elaborate man management policies also made

the Bank a breeding ground for business leaders. The Bank provided around a dozen

CEOs to the industry- men who went on to build other great institutions. People

initiatives were blended with IR initiatives to create an effectively harmonious

workplace, where everyone prospered.

• Financial Initiatives

New norms for capital adequacy required new capital management strategies. In 1995 the

Bank raised Rs 300 crores through a Bond issue. In 1996 the Bank tapped the capital

Page 25: Hr Practice in Bank of Baroda

25

market with an IPO of Rs 850 crores, despite adverse market conditions prevailing then,

the issue was over subscribed, reflecting the positive public perception of the Bank's

fundamental financial strength.

• Digital Initiatives

Bank of Baroda pioneered the shift from manual operating systems to a computerized

work environment. Starting with ledgers, to ledger posting machines, through ALPMs,

the Bank graduated to the use of Unix based systems to Mainframes; to client server

based Total Branch Mechanization Systems. Today, the Bank has 1918 computerized

branches, covering 70% of its network and 91.64% of its business. Alive to the growing

complexities of an intensely competitive marketplace and the mounting expectations of

customers fuelled by this competition, the Bank reworked its distribution strategy. It

ventured beyond the brick and mortar delivery channel into ATMs and the OmniBOB

range of anytime, anywhere electronic channels of PC banking, telephone banking. The

e-banking products used state of the art technologies like digital certificates, smart card

authentication and secure networking.

The new IT strategy, in the process of implementation will see the deployment of Core

Banking Systems, Multi Service Transaction Switch, Payment Gateways - all geared to

deliver convenience banking.

• Quality Initiatives

In its relentless striving for quality perfection, the Bank secured the ISO 9001:2000

certification for 15 branches. By end of the current financial, the Bank is targeting 54

more branches for this quality certification.

The Future Revolutionary and discontinuous changes in the operating

environment is a stark reminder that business success is 'impermanent'. The emergence of

IT as a major driver for change, has accentuated the need to initiate a major

transformation program. The conversion to an IT savvy, market driven bank will be a

prerequisite to survival and growth. A major and strategic step in hi-tech, was the

establishment of the Integrated Treasury branch, as a forerunner to full-fledged global

Page 26: Hr Practice in Bank of Baroda

26

treasury operations. Towards creating a future Bank of Baroda, the Bank has adopted a

revolutionary new business strategy that will be enabled by a revolutionary new IT

strategy. Actioning this strategy will position Bank of Baroda as India's uncontested

premier bank.

At Bank of Baroda, change is a journey. It has a beginning. There will be no end.

It will be a long and difficult march. And the Bank will emerge stronger, more resilient

and positioned to become India's first bank of truly global standards. The relocation to

the imposing Baroda Corporate Centre is a true reflection of the Bank's resolve to move

ahead of the times. It will not be out of place now, as it stands on the threshold of a

digital era, to echo the same sentiments that guided the Bank in its platinum jubilee year

- 'a promising future is the sequel to a glorious past'.

Page 27: Hr Practice in Bank of Baroda

27

HUMAN RESOURCES

Bank of Baroda has the tradition of continuous enrichment of its human asset so that

they deliver value to the business.

In the ongoing Business Transformation Programme, our PEOPLE play a vital role and

are one of the key business enablers. Under its plan of organizational transformation

through people processes and systems, the Bank has launched a few innovative employee

centric initiatives and has also undertaken revamp of key systems and practices.

HR Objectives To initiate & institutionalize globally competitive HR practices in the Bank in

our pursuit to become a Bank of international standards and to become an

employer of preferred choice;

To put in place relevant HRD strategies and use modern methodologies to

undertake organizational renewal; identify and nurture talent, bring about

marked changes in the mindset of employees at all levels so as to enhance HR

Quality;

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

employees

To create a pool of entrepreneurial managers and business leaders for future;

To inculcate a strong and effective sales and service culture across levels in the

organization in order to generate strong stakeholder affiliation;

To create a learning organization for employees’ intellectual growth and

creativity; and to re-skill the workforce to operate in digitally enabled modern

core banking environment.

Page 28: Hr Practice in Bank of Baroda

28

Page 29: Hr Practice in Bank of Baroda

29

HR Business Model

The Strategic HR Business Model adopted by Bank of Baroda incorporates its HR

Mission and Philosophy and is focused towards attainment of long-term organizational

goals.

A very strong Organizational Leadership at different levels forms the key link in the

Model. These are;

I. Strategic Leadership - Corporate level

II. Business Leadership - Zonal & Regional level

III. Operational Leadership - Business unit level i.e. branch

Page 30: Hr Practice in Bank of Baroda

30

The two vital Human Resource sub-systems i.e. HR Planning & Management Sub-

System & Competency Based HRD Sub-System shape the very crucial Performance

Environment within the Bank which facilitates development of enabling capabilities of

people.

Through proper developmental inputs, Positive Attitude & Right Mindset is created

among people.

Through proper Communication Medium and an Organizational Culture of sharing,

openness, collaboration & confrontation, autonomy etc., people in the organization are

facilitated to give their best output (performance).

The Model is adequately supported by a suitable Learning Platform, which imparts

proper Knowledge and enhances Learning among people (functional, behavioural etc)

so that their Competence increases and their potential could be properly leveraged for

greater Individual and Organizational Effectiveness.

These create proper Employee Motivation, which ultimately facilitates Goal

Achievement.

Page 31: Hr Practice in Bank of Baroda

31

HR Initiatives

Board level approved strategy paper outlining various organization wide HR reforms /interventions

» HR Steering Committee

Board Level HR Committee for piloting HR initiatives and reforms. The Committee comprises of Directors

and leading professionals as Experts from outside the Bank.

» KHOJ

Organization wide Talent identification and Development Programme for Officers and Clerks

(Through scientific process of identification and selection, employees with high potential to be deployed in

key business areas. Such employees to be provided with suitable grooming and career growth opportunities)

» SAMPARK

SOS Employee HELP Line

(Employees in distress can directly approach the CMD for immediate relief)

» PARAMARSH

Employees Counseling Centre

(Counseling centers for providing psychological assistance and guidance to overcome their stress,

complexities and conflicts in order to lead a better life.

This is totally confidential between the employee and the counselor.

Page 32: Hr Practice in Bank of Baroda

32

First such center set up at Mumbai where services of professional Clinical Psychologist are available.

» BARODA FINANCIAL REWARDS FOR BUSINESS LEADERS

Weighted Index based Model (with pre-defined weightages for different business KRAs) for balanced

assessment of efforts of Business Leaders (Branch Heads, Regional Heads, Deputy Regional Heads and

Zonal Heads).

Rewards in Cash for achievement of business KRAs

» MEP-TIKSHNA

Management Education Programs for Executives (GM, DGM, AGM, Chief Managers) in association

with top B-Schools like IIM-Ahemedabad and Management Development Institute, Gurgaon.

The specially designed programme is aimed at development of strategic business leaders for the future.

So far, 213 executives have undergone the programme.

» HR POLICY FOR OVERSEAS SELECTION & DEPLOYMENT

Scientific and process orientation in the new revamped policy for selection and deployment of officers

at the Bank’s overseas territories.

» HR RESOURCING POLICY

New HR Resourcing Policy formulate to take care of various recruitment needs of the bank

consequent upon abolition of the erstwhile Banking Services Recruitment Board (BSRB)

» Performance Appraisal System for Clerical and Sub-Staff

Page 33: Hr Practice in Bank of Baroda

33

With the objective of bringing an organization wide performance culture in the organization, hitherto

uncovered employees in the Clerical and Sub-Staff cadre brought in under a new performance appraisal

system.

» Massive Recruitment of Specialist officers and also graduates from B-Schools through campus

recruitment

To take care of the Bank’s requirement in different specialized areas like IT, Treasury, HR, Marketing &

Sales, Credit, International Business etc (Around 500 officers being recruited).

» A New Induction cum Grooming Programme for Young Officers

With the objective of developing future managers and leaders and for deployment in key areas, a re-

vamped Officers’ Induction cum Grooming Programme is launched.

» Fast Track Career Growth Opportunities for Executives and Officers

In order to provide fast track growth opportunities to aspiring Executives and Officers, promotional

opportunities have been provided.

» BARODA LEADERSHIP DEVELOPMENT CENTRE

Board has taken the decision to set-up a World-Class Leadership Development Centre to be set up to

prepare future leaders for the Bank.

» NEW GROUP HR STRUCTURE

A new Group HR Organization Structure is being put in place to take care of the strategic business –

HR needs of the Organization. The Structure would have balanced focus on HRM and HRD aspects and

will put in place competency based HR systems and practices.

Page 34: Hr Practice in Bank of Baroda

34

TRAINING

To keep up with the fast changing business scenario, product profile, processes, customer preferences,

numerous technology applications and compliance & regulatory requirements, training has become a centre-

stage activity.

The bank conducted 342 training programs in the area of CBS covering 6234 employees during the year. To

provide appropriate thrust in the area of credit and risk management, 193 programmes were conducted in

other functional areas covering 4595 employees during the year.

The resources of external Training Institutions and Business schools were tapped for training employees in

the functional areas where in-house expertise was not available. 741 Officers and Executives attended

training programmes in specialized areas at various external training institutions and reputed Business

Schools. Also 20 Officers/Executives attended training overseas.

A Leadership Development Program – Project LEAP

Post-2009 technology environment, competitive compulsions, entry of foreign banks, M&A will all tend to

change the course of banking necessitating new breed of leaders at different levels. So managing & leading a

financial services organization in such an environment would be a new challenge for future leaders.

Further, One of the key drivers for market leadership is the bank’s internal leadership. It is in response to this

that the project LEAP (Leadership enhancement and appreciation process) was conceived and launched

aimed to groom the executives in leadership and capability building.

Under this program of Bank Of Baroda, nearby three hundred executives has been groomed in leadership in

a phased manner. It’s rigorous process involves:

Page 35: Hr Practice in Bank of Baroda

35

To identify a competency framework for future leaders in the Bank.

Administration of psychometric instruments and 360-degree feedback for each identified executive

for building on their strength and working in the areas where development is needed.

Classroom orientation & Action Learning Projects.

Succession Planning.

Another is KHOJ-For talent Identification and grooming

KHOJ initially was initiated as an in-house talent identification and development exercise in 2005. An

element of self-development and career planning is built into the system, as this is a voluntary exercise

where aspiring employees apply for selection for grooming in various areas they perceive as their areas of

strength in our operations.

Encouraged by the huge response to the initiative, KHOJ exercise has been repeated in 2006 and in

2007.Candidates selected under KHOJ are groomed, placed in the area of operation of their choice. As part

of their development many are identified as change champions in many of the new initiatives. Mentors are

assigned for facilitating their grooming.

Exclusive Conclaves of KHOJ selectees were organized. In order to make the KHOJ selectees a vibrant and

visible group, due weight age is given to their contribution in career progression, rewards, special

assignments, etc.

PROMOTION

Page 36: Hr Practice in Bank of Baroda

36

The present procedure of recruitment and promotion in the banks has evolved over the years in an ad hoc manner.

With the objective of bringing an organization wide performance culture in the organization, hitherto uncovered

employees in the Clerical and Sub-Staff cadre brought in under a new performance appraisal system.

To take care of the Bank’s requirement in different specialized areas like IT, Treasury, HR, Marketing & Sales,

Credit, International Business etc.

In most of the central government department there is provision for time bound promotion and hence

question of stagnation in particular scale does not arise. It is banks that even after completing twenty or thirty

years of service in a particular scale promotion is not given to an employee. (Now-a-days Interview is a

killer injection in the pocket of management, which can be injected to any good or bad performer in

promotion process as per whims, and fancies of the interviewer).

When leaders and bank management can give relief to retired employees

In order to provide fast track growth opportunities to aspiring Executives and Officers, promotional opportunities

have been provided.

According to Anurag Khanna, chairman and managing director of Bank net India, a banking research company,

new recruitments are to keep pace with the banks’ expansion plans. “The banks are adopting fast-track promotions to

fill in any management gap,” said Khanna.

We are battling private and foreign banks with public sector tools,” said Dipankar Mukherjee, general manager,

human resources and marketing at Bank of Baroda.

Low salary, tough working conditions, frequent transfers and an opaque promotion policy deter public sector

employees from working effectively.

Bank of Baroda wanted differential wages for their employees but they could not move ahead with their plans as the

unions opposed that.

Titles for the officer cadre start from assistant manager, deputy manager, manager, chief manager, general manager,

managing director and the chairman accordingly.

Though the pay scale slightly varies from bank to bank due to many reasons like the working place viz.metros, rural

areas the basic scale remains the same for every public sector bank.

The employees are promoted on the basis of their score in the exams taken by the bank. It includes written exam and

interview. It is taken time to time. There are some qualifications required for appearing in the exam.

Page 37: Hr Practice in Bank of Baroda

37

For example a clerk is eligible for the promotion to the Probationary Officer after one year of his service.

The promotion policy is based on two parameters

(i) Qualification,

(ii) Time

Separate marks were prescribed for each of the two parameters and, after obtaining the minimum qualifying marks

varying from cadre to cadre one could be promoted to the next higher position. While formulating the merit-based

promotion policy the consideration opinion was that separate points should not be prescribed for qualification and

length of service. The simple reason for this thinking was that the minimum qualification stood as prescribed at

induction for different levels of hierarchy. The other consideration for such views was that in case the employee had

increased his qualification for his better performance as compared to other colleagues, then the said qualification

would be reflected on his performance and this would obviously have him rated better than others. Views regarding

the seniority of an employee were similar.

To meet the Bank’s growth requirements and to fulfill the aspirations of employees, avenues for career progression

have been numerous. Special efforts have been made to maintain relatively younger employees manning key

positions. Keeping this in view the following numbers of employees were promoted to higher grade/scale during the

year

YEAR (2008-09)

JMG/S-I to MMG/S-II (Officer to Manager) 927

MMG/S II to MMG/S III (Manager to Sr. Manager) 552

MMG/S III to MMG/S IV (Sr. Manager to Chief Manager) 220

SMG/S IV to SMG/S V (Chief Manager to Asst. Gen. Manager) 46

SMG/S V to TEG/S VI (Asst. Gen. Manager to Dy. Gen. Manager) 30

TEG/S VI to TEG/S VII (Dy. Gen. Manager to General Manager) 10

Page 38: Hr Practice in Bank of Baroda

38

But there are some negative aspect is also present. In olden days when officer was not found fit for

promotion due to inefficiency he was to face stagnation as mild dose of punishment. This used to happen

when promotion based on seniority used to take place and management used to give promotion even if there

were not adequate vacancies in that scale.

The powers and duties of its officers and employees All the officers from JMGS I to TEGS VI grade of the bank, working in branches have certain discretionary

lending and administrative powers depending upon their positions. The Board decides the delegation of such

powers of various grades of officials. These powers are revised periodically, depending upon the

organization’s requirement and also Government / RBI guidelines.

Whether to sanction a loan or not, is the absolute discretion of the concerned sanctioning authority of the

bank and such discretion is exercised, after taking into consideration the relevant facts and circumstances of

each case.

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

accountability.

There is a well-defined system in the Bank regarding decision-making process. The Board takes lending and

administrative decisions at various levels from JMGS I to Top Executive grade Scale VII and also by

Executive Director and Chairman & Managing Director depending upon their positions as per the

discretionary lending powers delegated to them. Branches receive applications for credit facilities and

recommend to the appropriate sanctioning authority. In the case of major retail loan products applications are

processed at branches and Centralised Credit Processing Cells at select centers.

There is a well-defined organizational structure and clear system of accountability based on RBI / CVC

guidelines. All credit decisions approved by any sanctioning authority are reported to the next higher

authority for control purpose. The system of exercising proper delegation of power and submission of control

reports is in place and they are monitored by control officers and through internal inspection

Page 39: Hr Practice in Bank of Baroda

39

The Baroda Sun

Our logo is a unique representation of a universal symbol. It comprises dual 'B' letterforms that hold the rays

of the rising sun. We call this the Baroda Sun.

The sun is an excellent representation of what our Bank stands for. It is the single most powerful source of

light and energy. Its far-reaching rays dispel darkness to illuminate everything they touch. At Bank of

Baroda, we seek to be the sources that will help all our stakeholders realize their goals. To our customers, we

seek to be a one stop, reliable partner who will help them address different financial needs. To our

employees, we offer rewarding careers and to our investors and business partners, maximum return on their

investment. The single color, compelling Vermillion palette has been carefully chosen, for its

distinctiveness as it stands for hope and energy. We also recognize that our Bank is characterized by

diversity. Our network of branches spans geographical and cultural boundaries and rural-urban divides. Our

Customers come from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face for

our brand because it is a universal symbol of dynamism and optimism. Our corporate brand identity is

much more than a cosmetic change. It is a signal that we recognize and are prepared for new business

paradigms in a globalised world. At the same time, we will always stay in touch with our heritage and

enduring relationships on which our bank is founded. By adopting a symbol as simple and powerful as the

Baroda Sun, we hope to communicate both.

Bank of Baroda rose in a new avatar with what it calls the "Baroda Sun" with cricketer Rahul Dravid (in

picture) roped in to endorse the brand which now projects itself as a modern and tech-savvy bank.

Brand marketers are calling it the impact of cut-throat competition in the domestic market. Faced with rising

competition on the domestic front, many Indian companies are increasingly going in for a corporate brand

makeover. But, as they insist, it's not merely a logo change but represents a fundamental shift in the way the

companies will operate henceforth.

According to Sharma, it is the fast-changing society and environment, which is driving companies to go in

for a change in their corporate logo and identity. "The change has to be relevant, as the company is related to

society and society is changing quickly and that change needs to be reflected," he says. "In fact, consumers

are evolving all the time, so it becomes critical for companies to stay contemporary and relevant. A

makeover gives a new identity and infuses freshness and is undertaken with an aim of altering perceptions,"

Page 40: Hr Practice in Bank of Baroda

40

says an official from Synovate India, a market research firm. In most cases, the change in corporate logos is

also used to announce a far-reaching change within the company itself.

As Meeta Malhotra, Director, Ray + Keshavan Design, which redesigned the Bank of Baroda logo, says, a

logo is the face of a company and when you change that face, a company sets a certain level of expectation

which it has to meet. "Logo redesign is meant to signal change in a company and is the most effective way to

do it," she says. In BoB's case, she explains, the bank was itself undergoing a transformation in its operations

and services. "It's a huge exercise, and companies need to communicate that they are changing in a tangible

and visible way." A mere logo change without a change in a company's functioning is a meaningless

exercise, she adds.

The Bangalore-based design house has a five-point test for a company's brand identity: Is it relevant,

enduring, sustainable, memorable and unique? If they fail to meet one or more of the above requirements,

companies should look at a change. "It is hard to imagine a company changing logos just for cosmetic

reasons because it requires such significant investment and change management," says Malhotra

Interestingly, companies which are going in for a change in their corporate image can be divided into two -

those that have already implemented a change in their style of functioning and want to come up with a

fresher image to reflect it and those that are set to bring about far-reaching changes within the firm and are

announcing those changes through a new corporate identity.

A company's logo is perhaps the opening impression of a company in the eyes of its consumers both internal

and external. For companies, which grew organically over the last few decades and were often sheltered in

an economy that did not allow competition, the importance of the logo or initial impression was lost. Too

few players and hugely different product offerings! So no real competition. They didn't feel the need to

invest in an image. However, increasing competition and the need of companies to be seen differently from

their peers has catalyzed the need for change." says Anisha Shakdher, Founder & Creative Head, and Bounce

Design.

This is probably the reason why even public sector banks are now going in for an image makeover. While

State Bank of India is sprucing up many of its branches, the 97-year-old Bank of Baroda (BoB) is now

sporting a new logo and will soon unleash a high-pitched ad campaign? The old logo makes way for a new

one, which is a double `B' with a rising sun called `The Baroda Sun.' According to Anil K. Khandelwal,

Chairman & Managing Director, BoB, "The new corporate logo is much more than a cosmetic change. It is a

signal the bank recognizes and is preparing itself for the new business paradigms in the globalised world."

Page 41: Hr Practice in Bank of Baroda

41

Coinciding with the unveiling of the new logo, the Bank also announced that it would be launching a number

of customer-centric initiatives, including IT products and expansion of electronic delivery channels. The

uphill task, however, is to create a lasting, perceptible difference in the consumer's mind that its style of

functioning too has changed. Otherwise, the whole exercise might be ineffectual.

"For instance, if a bank were to go in for a new corporate identity to appear younger and more modern, but

its branches are working in the same manner in which they were earlier, the point of the whole exercise of a

change in corporate identity would be lost on the consumer. Thereby, a change should not merely be

cosmetic," points out Sharma. In other words, a huge bank such as Bank of Baroda, which has over 2,700

branches, would need to implement a change across a large portion of its network to make an impression. "In

fact, it is tougher for service-oriented companies to make this transition. And even more difficult for banking

ones, since they have to focus on building a relationship with the consumer and in the same breath ask them

to use technology for banking, as banks increasingly do not want consumers visiting banks in order to cut

costs," says Sharma.

On whether the makeover actually makes a difference to the company's sales, analysts say it depends on

whether, after the initial "cosmetic" change, the company has been able to infuse the same freshness into its

functioning over a period of time. Trademarks or logos are unique symbols that help identify a product, a

brand or an institution, but as legendary designer Paul Rand once explained, "a trademark is created by a

designer but made by a corporation."

Bank of Baroda features in list of 50 India’s Most Valuable Brand 2009

The Economic Times has published the list of India’s Most Valuable Brands (2009) released out by Brand

Finance, a leading global brand valuation firm. Bank of Baroda features in the elite club of 9 Banking and

Finance companies in the list. Even though the Top 50 list points to the declining influence of companies

from the banking and finance services sector, Bank of Baroda has achieved 34th position as against its 39th

position last year. The brand is now valued at 466 US million $, close to 11 % increase from last year. It is

worth mentioning that the Brand Finance IMVB study indicates that as long as brands continue to reinvent

and deliver good value for money, they will do well.

Page 42: Hr Practice in Bank of Baroda

42

Domestic Operations

Baroda Fixed Deposit Account

Why just let your money idle, when you can idle it with interest? Depending on the period, our various fixed

deposit products help you get the best out of your savings by offering you good interest rates.

Enjoy both security and competitive rates of interest on your deposits with any of the following products.

For Deposits upto 12 months:

Short Deposits

For Deposits over 12 months:

Fast Access Deposit Scheme

BoB Flexible Fixed Deposit Scheme

Regular Income Plan

Monthly Income Plan

Regular Income Cum Recurring Deposit

Capital Gain Account Scheme, 1988

Term Deposits

Baroda Tax Savings Term Deposit

As Recurring Deposits:

General Scheme

Baroda Flexible Recurring Deposit Account

Current Account Current Deposits product is ideal for firm, companies, institutions, HUF, individuals etc., who need banking

facility more frequently. This is one of the most basic and flexible deposit options, allowing transaction

without limiting the numbers.You may choose from:

Page 43: Hr Practice in Bank of Baroda

43

Baroda Current Account

Baroda Premium Current Account (BPCA)

Baroda Premium Current Account-Privilege (BPCAP)

Baroda Advantage Current Account

Current Account rules

Baroda Savings Account

Depending on the nature of the account and the governing terms and conditions, Bank of Baroda offers you

under Savings Accounts.

Baroda Centenary Savings Account

Savings Bank Account

Super Savings Account

Nagrik Bachat Khata

Baroda Salary Advantage Saving Account

Baroda Bachat Mitra

Business Banking Services

Customised services for unique requirements.

The small and medium business enterprise is one of the fastest growing sectors in the country. Bank of

Baroda offers various products and services that meet the specific requirements of such enterprises and help

them grow.

In addition to tailor-made products, you can depend on the strength of our nation-wide network and facilities

that will enable you to conduct your business smoothly, without geographical constraints.

Be it Deposits, Loans & Advances, Collection Services, Working Capital Finance, Term Finance, Non-Fund

based Facilities, Trade Finance, Merchant Banking or other such aspects of banking, we have a solution to

help your business run smoothly and efficiently.

Page 44: Hr Practice in Bank of Baroda

44

Personal Banking Service

The strength and integrity of relationships.

Bank of Baroda believes in the strength and integrity of relationships built with its customers like you. With

over 101 years of experience in the banking industry and a wide network of over 3000 branches all over the

country, we have always been active in extending financial support and adapting to your changing needs.

Our Deposit Products, Retail Loans, Credit Cards and Debit Cards help you with your growing financial

needs. With facilities like Lockers we ensure that your valuables are safe with us.

Our countrywide branches offer you convenience and ease in operating your account wherever you are. Our

24-hour ATMs enable you to withdraw cash, check your account balance and request for a new chequebook

even after banking hours.

Faster technology for better service

Baroda Internet Banking / Baroda Mobile Banking, our latest Internet and Mobile banking initiatives enable

you to operate your account just as you would in any of our branches. You can through the Internet check

your balance, request for chequebooks and print account details.

Corporate

Banking

Services

Supporting corporate growth

As corporations grow they feel the need to expand and invest in new infrastructure.

External finance is one of the most important sources for funding expansion plans.

With services ranging from Working Capital Finance, Short Term Corporate Loans

Project Finance to Cash Management and Merchant Banking,

Bank of Baroda Corporate Banking offers various options that help

fund and enable corporations in their investment and expansion plans.

These products also offer merchant banking and cash management solutions.

Our global presence, large-scale operability, highly networked systems and local market penetration allow

our customers to reap financial benefits to the maximum.

Page 45: Hr Practice in Bank of Baroda

45

Treasury

Operations

In the changing economic environment of the country in particular and the globe in general,

Bank of Baroda was the premier public sector bank in India to set up a Specialized Integrated Treasury

Branch (SITB) in Mumbai and the integrated approach initiated by the Bank in its treasury operations is

now being emulated by other peer banks.

Bank of Baroda has consciously adopted a focused approach towards improving efficiency and profitability by

successfully integrating the operations of different financial markets, viz. Domestic Money, Investments,

Foreign Exchange and Derivatives and has made its mark as an important player in the market-place.

The SITB at Mumbai, equipped with the State-of-the-art technology, with modern communication facilities,

handles all types of financial transactions, both for managing its resources and deployments and effective

compliance of regulatory requirements.

Rural

Banking

Services

Strengthening the rural economy

Rural India contributes a major chunk to the economy every year. To give this sector a

stronghold on finance and to enable economic independence, Bank of Baroda has special

offerings that extend credit facilities to small and marginal farmers, agricultural labourers

and cottage industry entrepreneurs.

With the objective of developing rural economy through promotion of agriculture, trade,

commerce, industry and extending credit facilities particularly to small and marginal

farmers, agricultural labourers and small entrepreneurs, Bank of Baroda, over the years, has

reached out to larger part of rural India. We extend loans for agricultural activities and a host

of services for farmers well tuned to the rural market, and aim to make a Self Reliant Rural

India.

Page 46: Hr Practice in Bank of Baroda

46

International Operations

• Wide global network

Bank of Baroda started its overseas journey by opening its first branch way back in 1953 in Mombassa,

Kenya. Since then the Bank has come a long way in expanding its international network to serve NRIs/PIOs

and locals. Today it has transformed into India's International Bank.

It has significant international presence with a network of 76 offices in 25 countries including 48

branches/offices of the Bank, 25 branches of its 7 Subsidiaries and 3 Representative Offices in Malaysia,

Thailand & Australia. The Bank also has a Joint Venture in Zambia with 11 branches.

The Bank has presence in world's major financial centers i.e. New York, London, Brussels, Dubai, Hong

Kong, and Singapore.The "round the clock around the globe", Bank of Baroda is further in the process of

identifying/opening more overseas centers for increasing its global presence to serve its 36 million global

customers in still better way.

Recently, its Subsidiary in Uganda - Bank of Baroda (Uganda) Ltd. opened its 8th branch at Kawempe and

the Subsidiary in Kenya - Bank of Baroda (Kenya) Ltd. also opened its 8th branch at Nakuru. Bank now has

-32- branches in -8- countries in Africa.

Bank has plans to establish overseas offices in New Zealand, Russia, Canada, Qatar, Mozambique,

Suriname, Kuwait, Saudi Arabia etc. and also open additional branches in UAE, Oman, USA, China,

Trinidad & Tobago and Uganda. It has further plans to upgrade its Representative Offices in Malaysia and

Australia to branches.

Money Centre Branches

Seven branches at London, New York,

Brussels, OBU Mauritius, OBU Nassau,

Dubai and Singapore are our Money

Centre Branches, thus offering flexibility

as well as good standing.

Page 47: Hr Practice in Bank of Baroda

47

International Treasury: Bank of Baroda has a strong presence in the Treasury Market in India as well as abroad. The overseas

Money Centre Branches undertake the Forex treasury operations on behalf of the customers. All the Forex

treasuries at the overseas money center branches are equipped with state of art technology, highly

experienced and motivated staff with professional skills. These branches deal in all the major international

currencies i.e. US$, GBP, Euro, Yen as well as other currencies. These branches undertake the following

treasury related activities:

• Forex Inter Bank Placements/ Borrowings

• Sale & Purchase of currency on behalf of customers

• Forward Cover Bookings

• Cross Currency Swaps

• Interest Rate Swaps (IRS)

• Forward Rate Arrangements (FRA's)

• Forex Money Market Operation

Page 48: Hr Practice in Bank of Baroda

48

NRI Services

We offer a red carpet welcome to all NRI's to bank with us. As a premier nationalised bank in India,

with comprehensive banking experience world-wide, and by virtue of our consistent track record of profit

making since 1908,we are confident of meeting all your banking requirements.

Our wide network of foreign branches, offices and Correspondent Relations at convenient business locations

all round the world, which is the largest among any bank in India, will ensure a smooth and safe banking

experience.

We continue to cherish our rich ethnic traditional values and culture, during our personal interface. Yet we

are speedily repositioning ourselves in the e-millennium era of banking in India, to take care of your

changing needs and expectations. Our information technology strategies are directed towards enabling us to

provide you with a state of the art customer convenience, thereby facilitating a global banking experience.

We understand you, the NRI's, your needs and immensely value your patronage and would like to extend to

you our bouquet of products and services. We assure you the best possible banking experience and will

ensure that your wealth continues to grow with us.

Eligibility - FOR NON-RESIDENT INDIANS ONLY

Different meaning under different statutes

FERA, 1973 and I.T. Act 1961 had different definitions

Includes NRI and other non-resident foreign nationals

NRI includes non-resident Indian nationals and also non-resident Persons of Indian origin

Under FERA, emphasis in determining residential status was based on purpose of stay outside India and

not on duration of stay outside India.

Definition of person resident in India as per new legislation, FEMA

Earlier definition independent of period of stay

Current definition dependent on both 'purpose of stay' and on 'period of stay' as defined in Chapter 1,Clause

2 of FEMA

Page 49: Hr Practice in Bank of Baroda

49

Definition of NRI: Regulation 2(vi) of FEMA 5

Person resident outside India, who is a citizen of India or is a person of Indian origin

Indian citizens working abroad on assignment with Foreign Governments, Govt. agencies or in UNO and

its affiliates IMF,IBRD etc. and Govt. officials (both central and state) and other officials of PSU's

deputed abroad on assignments or posted abroad including Diplomatic Missions.

Indian Students studying abroad are also treated as NRIs provided their stay abroad is for more than 182

days in the preceding financial year and their intention to stay outside India for an uncertain period

when they go abroad for studies.

Non-resident foreign citizens of Indian origin are treated on par with NRI citizens for the purpose of

certain facilities

Foreign Currency Credits

The Foreign currency denominated credit facilities are granted to the Indian corporations in India as well as

at the Money Centre Branches abroad.

Corporations interested in raising foreign currency funds both in India and abroad may contact in India the

branches they are dealing with, the Position Maintaining Offices (PMO's/ Authorised Foreign Exchange

Branches), Corporate Banking Branches, Industrial Finance branches or any of the major branch in the city.

They may also contact the Bank's Regional Offices/ Zonal Offices for the required information/ guidelines.

They may contact the International Division, Central Office at

Foreign Currency Loans In India (FCNR 'B' Loans).

The foreign currency denominated loans in India are granted against the foreign currency funds a bank has

on account of FCNR(B) Deposit. These loans are commonly known as FCNR(B) Loans.

Bank of Baroda with a wide global presence has a large base of NRI customers/ depositors. This enables,

Bank of Baroda pool in from a arge resource base of FCNR(B) deposits and is in a position to offer the

Foreign Currency Loans in India under FCNR(B) Plan at very competitive rates.

Page 50: Hr Practice in Bank of Baroda

50

Foreign Currency Credit outside India

With a presence at major financial centers of the world, Bank of Baroda has strong foreign currency

resources at Money Centre Branches. This enables Bank of Baroda to arrange for and grant Foreign

Currency Credits to Indian as well as multinational corporations at competitive rates.

The foreign currency denominated Loans are granted at Money Centre Branches across the globe. The

Foreign Currency Loans granted to Indian Corporate are granted as per External Commercial Borrowing

(ECB) Policy of Govt. of India.

Mid-sized companies have also joined the bandwagon. The idea behind is to scale up operations, become

globally competitive and getting access to foreign markets.

They will also require the international Corporate/ Merchant/ Investment Banking Services to arrange the

funds as well for other purposes.

International Merchant Banking Cell (IMBC) has been set up at BCC, Mumbai to pay focused attention to

the international merchant banking needs of Indian corporates with special emphasis on Externational

Commercial Borrowing .

IMBC has been offering Corporate/ Merchant/ Investment Banking services with a range of products as

enumerated below :

Arranging/ granting Foreign Currency Loans/ External Commercial Borrowing.

Providing whole range of transactional banking services to Indian corporates for their offices, Joint

Ventures, Subsidiaries abroad at places where we have branches.

Offering Foreign Exchange/ Derivative products.

Providing Buyers’ Credit/ Suppliers’ Credit.

Arranging / underwriting/ participating in Syndicated Loan

Raising funds for corporates through bilateral loans/ club deals

Arranging funds from International Markets by way of Bonds, FRNs, FCCBs etc.

Arranging loans from Export Credit Agencies of other countries

Advisory services on overseas investments

Page 51: Hr Practice in Bank of Baroda

51

Innovative tailor-made solutions to the specific requirements of corporates.

Structured financing for procuring specific assets such as rigs, ships, aircrafts etc.

Financing and structuring cross border acquisition debt.

External Commercial Borrowings

The foreign currency borrowings raised by the Indian corporates from confirmed banking sources outside

India are called "External Commercial Borrowings" (ECBs). These Foreign Currency borrowings can be

raised within ECB Policy guidelines of Govt. of India/ Reserve Bank of India applicable from time to time.

ECBs at Bank Of Baroda (BOB)

BOB is very active and is a leading player in granting and arranging various forms of foreign currency

facilities through ECB route for the Indian Corporates. BOB focuses on all type of foreign currency credit

requirements of Indian corporates in arranging the Foreign Currency Loans.

Bank of Baroda , India’s International Bank , having a strong global presence with 60 offices in 21 countries

including the major global Financial Centers ( Brussels, Dubai, Hong Kong, London, New York and

Singapore etc.) is very evenly placed and have an edge over all others in its capability to arrange/ grant the

funds from the international market.

BOB has a few decades of experience in arranging foreign currency loans. This long experience and wide

presence across the globe brings leverage to BOB to understand the ECB market better thus offer best terms

to the clientele .

International Merchant Banking Cell (IMBC)

With rising activities by Indian corporates in the global as well as back home in India , the quest for cheaper

and quicker global fund is growing at a substantial pace. Mid-sized companies have also joined the

bandwagon. The idea behind is to scale up operations, become globally competitive and getting access to

foreign markets.

They will also require the international Corporate/ Merchant/ Investment Banking Services to arrange the

Page 52: Hr Practice in Bank of Baroda

52

funds as well for other purposes.

International Merchant Banking Cell (IMBC) has been set up at BCC, Mumbai to pay focused attention to

the international merchant banking needs of Indian corporates with special emphasis on Externational

Commercial Borrowing .

IMBC has been offering Corporate/ Merchant/ Investment Banking services with a range of products as

enumerated below :

Arranging/ granting Foreign Currency Loans/ External Commercial Borrowing.

Providing whole range of transactional banking services to Indian corporates for their offices, Joint

Ventures, Subsidiaries abroad at places where we have branches.

Offering Foreign Exchange/ Derivative products.

Providing Buyers’ Credit/ Suppliers’ Credit.

Arranging / underwriting/ participating in Syndicated Loan

Raising funds for corporates through bilateral loans/ club deals

Arranging funds from International Markets by way of Bonds, FRNs, FCCBs etc.

Arranging loans from Export Credit Agencies of other countries

Advisory services on overseas investments

Innovative tailor-made solutions to the specific requirements of corporates.

Structured financing for procuring specific assets such as rigs, ships, aircrafts etc.

Financing and structuring cross border acquisition debt.

Regional Syndication Centres (RSCs)

BOB has set up Regional Syndication Centres at Dubai , London and Singapore to exclusively arrange tailor

made solutions for foreign currency / services at a competitive price for Indian / non Indian corporates .

It has a dedicated , professionally expert and specialist team both in India and abroad with international

exposure in the area of arranging Loan Syndication / other services .

Contact us at Intending corporate / Institutional clients can contact any of the following offices

Page 53: Hr Practice in Bank of Baroda

53

Corporate Financial Service Branches (CFS)

Corporate Banking Branches (CBBs)

International Business Branches (IBBs)

Nearest selected branches

Main branch of the city

Pricing :

The pricing of the foreign currency loans/ services implies the total cost to the company comprising –

rate of interest / margin ( it is linked with the risk profile of the intending borrower)

arrangement/ upfront fee and other fees.

The arrangement fee / upfront fee is a one time cost. The pricing depends on various factors such as the

credit rating of the borrower, tenor of the loan, demand/supply position of the foreign currency

available, market conditions etc. The prices keep on changing as per the market scenario and are

normally valid for a period of -30- days. In addition to the pricing, there are legal/ documentation /

out of pocket expenses etc. These are normally in the range of US$ 15,000 or US$ 20,000, but can be

higher in some cases.

Offshore Banking

Give your FOREX earnings a safe home:

In an unpredictable financial world, your well earned money needs a safe home. A home

where it can grow. Bank of Baroda takes this opportunity to announce the opening of its first Offshore

Banking Unit (OBU) in India at SEEPZ, Mumbai

With years of experience and expertise in overseas banking we are just one of the few banks

that have been granted permission by the Government of India to operate OBU within the country. This

comes in addition to our already existing OBUs in Mauritius and Bahamas.

So, when you invest your well earned FOREX with us, you get the expert opinions and services of a

Page 54: Hr Practice in Bank of Baroda

54

bank which has an international presence in 22 countries through 64 offices and represented by 2800 fully

equipped branches spanning the globe.

Export Credit (Rs)

RUPEE EXPORT CREDIT (PRE-SHIPMENT AND POST-SHIPMENT) : BOB offers both pre and post

shipment credit to the Indian exporters through Rupee Denominated Loans as well as foreign currency loans

in India.

Exporters having firm export orders or confirmed L/C from a recognized Bank can avail the export credit

facilities from BOB provided they satisfy the required credit norms. The details of the credit norms can be

obtained from the nearest authorised branch of the Bank.

Rupee export credit is available for a maximum period of -180- days from the date of first disbursement. The

corporates, if required can book forward contracts in respect of future export credit drawals.

EXPORT BILL REDISCOUNTING : BOB offers financing of export by way of bill discounting of

export bills to provide post shipment finance to the exporters at competitive international rate of interest.

The export bills (both Sight and Usance) can be purchased/ discounted provided they comply with the norms

of the Bank/ RBI.

All exporters are eligible to cover the bills drawn under L/C, non-credit bills under sanctioned limits under

the Bill discounting Scheme.

Import Finance

Bank of Baroda provides various types of funding/ services to the importers for facilitating the imports in the

country. The vast network of Bank's overseas branches/ subsidiaries and Correspondent Banks worldwide

facilitate prompt & efficient services to the importers. All the facilities are subject to the prevalent rules of

the Bank/ RBI guidelines. The various facilities provided are:

Collection of import bill.

Page 55: Hr Practice in Bank of Baroda

55

Opening of Import L/Cs (Sight/ DA)

Financing of import by way of Foreign Currency Loans

Issuing Guarantees etc. on behalf of importers.

COLLECTION OF IMPORT BILLS:

The import bills are collected through the 120 authorised branches at very competitive rates. The Bank has

correspondent relationship with reputed International Banks throughout the world and can provide the

services to importers who may be importing from any part of the globe.

LETTER OF CREDIT:

Bank of Baroda offers L/C facility for the purchase of goods in the international market. Being a well-known

international Bank of repute, the L/Cs of the Bank of Baroda are well accepted in the International market.

With the Letter of Credit of Bank of Baroda, importers can build up better trust/ confidence in their suppliers

and develop other business relationship at a much faster pace.

The L/C facility can be granted to the importers after assessing their requirement/ credit worthiness/ financial

strength and other parameters being to the satisfaction of the Bank.

BANK GUARANTEES:

Bank of Baroda on behalf of importers/ other customers issues guarantees in favour of beneficiaries abroad.

The guarantees can be both Performance and Financial.

Trade Finance

Bank of Baroda through its overseas branches and subsidiaries, is very active in financing of Usance post

sales international trade bills by way of discounting of the same.

With its large foreign currency resources and overseas presence , Bank of Baroda is in a position to offer the

most competitive rates for discounting of these bills.

The bills under the L/Cs of the most of the Indian Banks as well as International Banks can be discounted at

Page 56: Hr Practice in Bank of Baroda

56

competitive rates.

The Banks / Corporates desirous of discounting the bills under / outside L/Cs can contact the respective

overseas money center branches / overseas subsidiaries

Corporate Office Bank of Baroda,

LIFE INSURANCES OF BANK OF BARODA

Life insurance business may take over eight years to break even, but, venturing into life insurance is turning

out to be extremely profitable for banks, which are also very aggressive in the marketing strategy.

Baroda L&G Life Insurance, the insurance joint venture (JV) promoted by Bank of Baroda, Andhra Bank

and the UK insurer Legal and General (L&G), has called for a pitch for its creative and media duties.

The life insurance JV, with an initial paid up capital of Rs 220 crore, was formed in November 2007. Bank

of Baroda holds a 44 per cent stake, Andhra Bank has a 30 per cent holding and the remaining 26 per cent is

held by L&G.

The company is poised to launch its products like savings insurance, Unit Linked Insurance Plans as well as

pure protection and term products, within a few months from now and plans to empanel three agencies for

about three years. For this, the company is inviting presentations from about 25 Mumbai based agencies.

Baroda L&G Life Insurance will bank on the customer base of both Bank of Baroda and Andhra Bank to

cash in on the already cluttered Indian life insurance segment. The two Indian banks have more than 40

million customers, who could be captive clients for the proposed insurance business. Together, these banks

have a network of about 4,000 branches across the country. The JV also plans to benefit from the strong

presence of the two banks in the rural and semi-urban markets.Life insurance is a very lucrative business,

with private life insurers having pumped in around Rs 25,000 crore into the life insurance segment. Most of

the money has come in the past two years when rising stock prices enabled promoters to raise funds from

foreign institutional investors

Page 57: Hr Practice in Bank of Baroda

57

The norms set by the Bank for the discharge of its functions.

Corporate Centre decide the rates to be offered by the Bank for the deposits, for different tenures which are

displayed in the Bank’s website and also at the branches. Regarding the advance, again the corporate centre

takes a decision on introduction of various loan products and details of which are available in the website as

well as at the branches. Corporate Centre also decides about the rates of interest for various advances which

again are available on our website and also at the offices / Branches of the Bank.

Whether to sanction a loan or not, is the absolute discretion of the concerned sanctioning authority of the

Bank and such discretion is exercised, after taking into consideration the relevant facts and circumstances of

each case.

The rules, regulations, instructions, manuals and records, held by the Bank or under its control or

used by its employees for discharging its functions.

There are quite a number of documents like manuals, book of instructions, codified circulars, scheme of

delegation of powers, proceedings of the board etc. And also the periodical circulars, used by the employees

for discharging various functions. (These are all meant for internal circulation and can not be shared with

public)

A statement of the boards, councils, committees and other bodies consisting of two or more persons

constituted as its part or for the purpose of its advice, and as to whether meetings of those boards,

councils, committees and other bodies are open to the public, or the minutes of such meetings are

accessible for public

Page 58: Hr Practice in Bank of Baroda

58

The Bank has following Sub Committees of the Board

• Management Committee of the Board

• Audit Committee of the Board

• ALM & Risk Management Committee of the Board

• Customer Service Committee of the Board

• Committee on High Value Frauds

• Shareholders Investors Grievances Committee

• Committee of Directors

• Steering Committee on HR

The Public are not entitled to participate on the above Committee meetings and minutes are not accessible to

public.

Page 59: Hr Practice in Bank of Baroda

59

COMPETITORS

Company Sales

(Rs.Million)

Current

Price Change (%) P/E Ratio

Market

Cap.(Rs.Millio

n)

52-Week

High/Low

SBI 637884.34 2269.45 1.99 14.35 1440828.92 2500/894

Punjab National Bank 193261.63 906.85 -1.07 7.88 285932.07 943/286

Bank Of India Ltd 163473.58 385.00 -0.21 7.81 202192.49 475/180

Bank Of Baroda Ltd 150915.77 511.30 -0.81 6.70 186249.46 563/181

Canara Bank Ltd 171190.54 390.75 -1.83 5.55 160207.50 437/144

Union Bank Of India 118893.79 264.00 -0.36 6.40 133351.13 291/115

IDBI 116316.27 127.45 0.08 9.60 92378.09 140/40

Indian Bank Ltd 68303.30 174.05 0.26 5.16 74801.47 196/64

CentralBank of India 104551.89 167.25 10.95 6.78 67592.66 164/30

OrientBan 88564.72 250.40 -1.20 6.43 62735.14 296/95

Corporation Bank Ltd 60673.52 422.35 0.42 5.66 60581.88 480/156

Indian Overseas Bank 96414.03 110.55 -1.29 5.07 60227.64 141/38

Allahabad Bank Ltd 73647.28 126.10 -0.86 4.44 56328.87 144/37

Page 60: Hr Practice in Bank of Baroda

60

Andhra Bank Ltd 53746.17 104.35 0.34 5.36 50609.75 125/37

Syndicate Bank Ltd 95796.37 95.95 0.10 5.00 50082.86 105/38

UCO Bank Ltd 81213.82 55.75 -0.18 4.98 30626.82 62/22

State.Bk of Travancore 41231.52 548.25 0.06 3.63 27412.50 604/176

StBkMysor 32472.76 707.65 2.00 6.16 25475.40 786/294

Dena Bank Ltd 34474.95 83.25 -0.89 4.86 23878.03 93/27

StBkBikan 38102.80 464.90 0.84 5.04 23245.00 540/168

Vijaya Bank 52378.25 51.95 -0.76 4.41 22521.25 59/20

Bank of Maharashtra 42915.57 50.15 0.30 4.84 21590.58 53/19

Business Strategies

Page 61: Hr Practice in Bank of Baroda

61

BOB intend to enhance our position as a cost efficient and customer focused institution

that provides comprehensive banking and related services, with particular emphasis on

the following strategies.

Implement new initiatives to accomplish total customer centricity. BOB continue to

implement new information technology and other initiatives to provide total customer

centricity and have made advances in the networking, computerization and

interconnectivity of our branches, ATMs and other delivery channels.

As part of our strategy to provide our customers with the best on-demand service, BOB

have commenced a comprehensive technology enabled business transformation project.

BOB have entered into an agreement with Hewlett Packard (HP) to assist us in delivering

a uniform, portal-based IT infrastructure to cover both our domestic and international

operations.

Through this project BOB will implement and manage an enterprise-wide service-

oriented architecture including, among others, core banking, phone banking, Internet

banking, call centre, delivery channel integration, risk and performance management,

financial analysis and planning, customer relationship management, data warehousing,

enterprise general ledger, global treasury, human resources management system and

cheque truncation system. The infrastructure will allow us to realign the way in which

BOB interact with our employees and conduct business with our customers and business

partners. It will also enable us to be compliant with Basel II norms within the prescribed

time limit whilst fulfilling the requirements of regulators in various jurisdictions. Our aim

is that all our branches and offices be brought under our private network in order to

provide our customers with total customer centricity and service their needs on an

“anywhere anytime” basis across the globe. BOB believe this will help us to compete and

excel in the increasingly challenging and competitive domestic and global banking

environments.

Our additional customer service initiatives include providing customer services at certain

branches from 8 a.m. to 8 p.m., operating select 24-hour branches, providing value added

Page 62: Hr Practice in Bank of Baroda

62

services on ATMs and introducing low cost rural ATMs.

Focus on marketing our credit products to large and medium sized

industrial units and infrastructure projects

BOB have initiated operational and organizational structure changes to accelerate our

credit growth to large and medium sized industrial units and infrastructure projects. Our

organizational changes include creating separate internal departments for product

development, marketing and credit expansion and establishing a project finance

department. Our operational changes include moving large corporate accounts to

dedicated corporate finance services branches and sanctioning of hunting limits (pre-

approved credit limits) for top rated corporations. Through competitive pricing, BOB also

plan to increase our share of non-funded and fee based business such as project

appraisals, loan syndications, debt refinancing, guarantees and letters of credit.

Grow our international operations

BOB have maintained an international presence for the past 52 years and BOB intend to

continue to grow our global operations. Our international branches, Subsidiaries and

Associate are focused on providing retail banking, structured products and BOBalth

management services and, along with our representative offices, allow us to focus on

asset creation and to develop cross border business by providing trade and project

finance, remittances, syndications and correspondent banking services. In addition, BOB

are looking to grow our global loan syndication business through our dedicated

syndication center located in our London branch. BOB recently opened a branch in

Leicester in the United Kingdom and a representative office in Bangkok in Thailand.

BOB have received approval from the RBI and are awaiting host country approval for the

opening of branches in Houston (USA), Hong Kong Bangladesh, Maldives and an OBU

at Singapore.

Page 63: Hr Practice in Bank of Baroda

63

RBI approvals have been received for the opening of new offices in, Canada, New

Zealand, Sri Lanka and Trinidad and Tobago and Isle of Man. BOB will continue to look

for attractive opportunities to expand our international reach and grow our business

outside India.

Continue growing our retail banking business

BOB have identified the growth of our retail-banking sector as a priority business

initiative for the past few years. Our dedicated retail-banking department was established

in October 2002. Our retail loans have grown from Rs. 27,128 million as at March 31,

2003 to Rs. 63,830 million as at March 31, 2005, reflecting a CAGR of 53.39%. BOB

have already intensified our focus on this sector by simplifying our current processes,

launching new products and services, establishing specialist personal banking, Baroda

Money lexes (dedicated retail product cells) and housing finance branch locations,

developing our distribution channels, including ATMs and internet banking, and

improving customer service. In addition, BOB believe that there is potential to generate

additional revenue growth by focusing on higher value added products and by enhancing

cross-selling across our different distribution channels. Increasing the sale of high margin

products such as insurance products and selling our depository services will also increase

our fee-based revenue.

Strengthen our priority sector banking business

BOB believe that priority sectors (including agriculture and small-scale industry) offer

large and potentially profitable growth opportunities. India has large unexploited land

resources and a variety of agro-climatic zones. It is one of the largest producers of milk,

cereals, vegetables and fruits. Approximately 23.0% of India’s GDP is derived from

agriculture.

The industry supports approximately two-thirds of India’s population and accounts for

14.7% of export earnings. BOB have 1,709 branches in rural and semi-urban centers and

Page 64: Hr Practice in Bank of Baroda

64

BOB intend to maintain and enhance our position as one of the leading banks for

agricultural lending in India. BOB have a nationwide presence in the agriculture and

small-scale industry sectors. BOB intend to further expand our agriculture and small-

scale industry sector banking activities by establishing more small-scale industry

branches. BOB have identified over 500 of our rural branches to target consumers for

intensive farm credit lending. BOB see increased potential for credit deployment in

agricultural export zones throughout the country. Another aspect of our strategy is to

further strengthen our ties with the agricultural community as BOB as related

manufacturers. For example, BOB have entered tie-ups with eight tractor-manufacturing

companies to promote investment credit, and BOB have also initiated a special scheme

for financing the purchase of second hand farming equipment.

Entering new areas businesses, alliances and strategic acquisitions

BOB intend to expand into new lines of business, which are complementary to our

existing product and service lines such as life insurance and stock broking. BOB intend to

develop these businesses by entering into joint ventures and alliances with leading

product and service suppliers and, in some cases, may also make strategic acquisitions.

BOB also intend to promote the cross selling of our own and third party products in order

to augment our fee-based revenue.

Reduce cost of funds

BOB have achieved a low overall cost of funds through a large base of low-cost deposits,

with total deposits representing 85.92% of our funding as of March 31, 2005. Our low

cost deposits, both current and savings, constituted 36.45 % of our total deposits as of

that date. As of September 30, 2005, our low cost deposits constituted 38.32% of our

total deposits. Our total deposits represented 84.78% of our funds as of that date. BOB

believe BOB can enlarge our low-cost funding base by leveraging our extensive branch

network and large customer base, particularly in the rural areas where many of the

Page 65: Hr Practice in Bank of Baroda

65

deposits are low-cost savings deposits. In particular, BOB are focused on the retail rural

section emphasizing low interest savings deposits.

Building our corporate image and our “Bank of Baroda” brand

BOB intend to continue to enhance our brand recognition in the marketplace through our

brand building efforts. BOB have undertaken various communication and promotional

initiatives such as developing and introducing our new logo, appointing a brand

ambassador, and launching product focused campaigns. BOB believe that these

initiatives, as BOB, will enhance the visibility of our brand name and strengthen our

recognition as a premiere Indian bank.

Page 66: Hr Practice in Bank of Baroda

66

BANK OF BARODA VARIOUS LOANS

• Baroda Car Loan

BOB provide loans up to Rs. 1 million to finance the purchase of new and used

automobiles.

• Baroda Two Wheeler loan

Available for all two wheelers, this loan product allows customers to borrow from Rs.

5,000 to Rs. 100,000, secured against the vehicle. The loan is to be repaid in a maximum

of 60 months from the date of the loan.

• Baroda Consumer Durables Loan

BOB provide personal loans up to a maximum of Rs. 100,000 for the purchase of

consumer durables. These loans are typically made for a period of up to five years and

secured against the durables purchased. Further security is required for loans in excess of

Rs. 50,000.

• Baroda Personal Computer Loans

Available for computer hardware (up to Rs. 100,000) and software (up to Rs. 20,000),

our personal computer loans allow individuals, families and small businesses obtain up to

date technology.

Page 67: Hr Practice in Bank of Baroda

67

• Baroda Personal Loans and Marriage Loan

BOB offer loans of betBOBen Rs. 20,000 and Rs. 200,000 to customers to cover

expenses such as unexpected medical expenses, travel expenses and honeymoon

holidays. BOB offer a maximum repayment period of 48 months. BOB also offer is the

Baroda Marriage Loan, which gives the flexibility of a personal loan as high as Rs.

200,000 to cover the expenses associated with BOBdding arrangements.

• Baroda Vaibhav Lakshmi

BOB extend loans to workingwomen up to a maximum of Rs. 200,000. BOB offer a

maximum repayment period of three years. BOB do not take any margin or security for

this loan.

• Baroda Festival Loans

Our Festival Loan facility provides loans up to a maximum of Rs. 50,000. The loans are

intended to meet expenses associated with festivals, purchase of gifts and purchase of

food grains, oil and other grocery items for the full year. Usual repayment terms of 10

months are offered to customers taking out festival loans.

• Baroda Advance against Securities

BOB are able to provide advances against national savings certificates, Kisan Vikas

Patra, Indira Vikas Patra, Life Insurance Polices, Relief Bonds, eligible Government

Bonds and shares.

Page 68: Hr Practice in Bank of Baroda

68

• Baroda Advance against Property

For properties in urban and metro centers, BOB offer loan/ overdrafts against

unencumbered property. Professionals, salaried individuals and self-employed

businessmen are able to take advantage of this product by borrowing up to a maximum of

Rs. 5 million with a repayment period of ten years for overdraft facilities and seven-years

for loans.

• Baroda Doctors Loans

BOB offer an exclusive product to cater to the financial needs of medical practitioners.

Under this scheme, an

amount up to Rs. 5 million can be availed way of loan and/or an overdraft facility for the

purchase of medical equipments, development of clinic, purchase of ambulance etc.

• Baroda Desh Videsh Yatra Loan

BOB extend loans to finance the expenses that may be incurred in the course of travelling

within India or and abroad. This facility is available to salaried or self-employed

individuals, professionals and businessmen having regular and stable income. A

maximum amount of Rs. 0.2 million and Rs. 1 million may be availed for travel in India

and abroad respectively. Such loans are typically repayable in three years.

• Baroda Loan for IPO Subscription

BOB extend loans up to a maximum of Rs. 1 million to individuals for subscribing to

equity shares in public issues. The margin money payable for such loans is 50% of the

loan extended. Such loans are required be repaid within 90 days.

Page 69: Hr Practice in Bank of Baroda

69

• Baroda Loans to Pensioners and Defense Pensioners

BOB extend loans to pensioners up to Rs. 0.1 million rising to Rs. 1.5 million for retired

defence personnel and their spouses.

• Baroda Professional Loans

BOB extend loans to professionals and self-employed individuals including, doctors,

chartered accountants, interior decorators, architects, practising company secretaries and

travel agents. Amounts betBOBen Rs. 25,000 and Rs. 2.5 million may be borrowed BOB

under this product.

• Baroda Traders Loan

The Baroda Traders Loan enables individuals and bodies such as partnership firms and

co-operative societies to raise working capital or undertake development of workspace by

way of loan or overdraft. Loans under this facility are limited to Rs. 10 million and

subject to a maximum term of five years.

• Baroda Loans against Future Rent Receivable

The Loans against Future Rent Receivables product has been developed following the

growth of real estate in various metropolitan and urban centers. Through this facility

BOB are able to offer loans secured against the future rental receipts of commercial

properties and shopping malls.

Page 70: Hr Practice in Bank of Baroda

70

• Baroda Eco-friendly Gas Kit Loan

BOB provide loans of up to Rs. 25,000 for the installation of eco-friendly gas kits in cars,

which are often secured by the automobile or other acceptable security.

• New Retail Banking Initiatives

As part of our strategy to grow our retail banking business, BOB have undertaken the

following initiatives:

_ Customizing products for specific borroBOBr groups such as group of employees,

teachers, defence personnel, among others, and offering incentives for such borroBOBrs

such as concessional rates of interest or waiving processing and documentation charges;

_ Rolling-out our Lending Automation Processing Software package in all metro and

urban branches to simplify and speed up the authorisation and processing of loans and

ensure consistency amongst branches. As at November 30, 2005, Lending Automation

Processing Software had been rolled-out in 185 branches of which 71 BOBre dedicated

corporate branches; and

_ Establishing Baroda Money lexes, which are essentially dedicated retail centres within

branches with staff with authority to undertake the processing of loans and make credit

decisions. As at November 30, 2005, 62 Moneyplexes had been rolled-out. Money lexes

are designed to promote all of our retail products, and will allow us to foster relationships

with service providers such as builders, educational institutions, car manufacturers and

dealers and white goods suppliers and enter into tie-ups and strategic alliances in the

future.

_ Establishing ten ‘Centralized Processing Cells’ in eight metro/ urban centres for

speedier appraisal, processing and sanctioning of retail proposals by using Lending

Page 71: Hr Practice in Bank of Baroda

71

Bank of Baroda - 5 yr Consolidated Performance Bank of Baroda is fast trying to catch up with its private sector counterparts! While 5yr

growth CAGR may seem poor at ~16%, FY08 has seen handsome spurts in growth.

Interest Income and Total Income grew by over 30 percent.

Bank of Baroda has now emerged as one of the most cost-efficient banks, beating its

private sector counterparts HDFC Bank and ICICI Bank and even the smaller and

nimbler Axis Bank handsomely. It shows decent margins and return ratios but the stock is

still languishing (Apr 2 2009) at less than consolidated book.

Want to collaborate with me and contribute towards India Stock Analysis?

Strong Capital Base

A strong capital base is the number one issue to consider before investing in a lender

Bank of Baroda has its Capital Adequacy ratios at ~13 percent, much above the

mandatory 9 percent requirement stipulated by RBI. Only 5 years back, Gross and Net

NPAs (Non-Performing Assets) were very high. But with a consistent focus on reducing

NPA levels, these have been brought down sequentially, year on year, to very

comfortable levels in FY08. FY08 Gross and Net NPAs stand at 1.82% and 0.45%,

respectively. Financial Leverage is around 16 percent in FY08.

It is good to see Bank of Baroda maintaining contingent liabilities at low levels.

Derivatives Exposure stood at ~31% of total assets, while total contingent liabilities stood

at ~45% of total assets. This is probably one of the most conservative among all banks.

Private Banks usually average above 200% of total assets on contingent liabilities.

Return on Equity (RoE) and Return on Assets (RoA)

These metrics are the defacto standards for gauging bank profitability.

Bank of Baroda's record on profitability needs to see more consistency. After dipping for

a couple of years in FY2005 and FY2006 Return on Equity is again showing signs of

improvement with FY08 RoE standing at 15%.This is primarily due to some

improvement in net margins. Return on Assets is also showing gradual improvement over

last 4 years.

Page 72: Hr Practice in Bank of Baroda

72

Efficiency Ratio

The efficiency ratio or cost to income ratio, measures non-interest expense, or operating

costs, as a percentage of income. Basically it tells you how efficiently the bank is

managed. Many good banks have efficiency ratios under 55% (lower the better)

Cost Efficiency ratio has seen significant improvements in the last 3 years with FY08

cost-efficiency ratio standing at ~33 percent; beats its private sector peers HDFC Bank,

ICICI Bank, and even the smaller, nimbler Axis Bank handsomely and rivals the much

smaller Yes Bank.

Net Interest Margins (NIM)

Another simple measure to watch is net interest margin, which looks at net interest

income as a percentage of average earning assets. Track margins over time to get a feel

for the trend.

Net Interest margins have been around the 3 percent mark. FY08 has shown NIMs

coming down a bit to 2.9 percent.

Strong Revenues

Historically many of the best-performing bank investments have been those that have

proven capable of above-average revenue growth

While 5yr growth CAGR may seem poor at ~16%, FY08 growth has been good. Interest

Income and Total Income growth stands at over 30 percent

Bank of Baroda Q2 profit jumps 60 pct - Public sector lender Bank of Baroda (BoB) reported a jump of 60 per cent in net profit

to Rs 634.18 crore for the second quarter ended September over the corresponding period

a year earlier.

Page 73: Hr Practice in Bank of Baroda

73

- The bank had a net profit of Rs 395.29 crore during the September quarter last financial

year.

- Total income of the bank rose to Rs 4,730.75 crore in the latest quarter of the current

fiscal from Rs 4,026.90 crore of the corresponding period a year ago, Bank of Baroda

said in a filing to the Bombay Stock Exchange (BSE).

- For the half-year ended September 30, 2009, Bank of Baroda registered a net profit of

Rs 1,319.56 crore, up 72 per cent compared to Rs 766.14 crore of the same period last

fiscal. Shares of Bank of Baroda were trading at Rs 506.70, up 4.10 per cent in afternoon

trade on the BSE.

Page 74: Hr Practice in Bank of Baroda

74

Page 75: Hr Practice in Bank of Baroda

75

ORGANISATIONAL STRUCTURE OF BANK OF BARODA

Page 76: Hr Practice in Bank of Baroda

76

Organizational Structure of Bank of Baroda, Ghantaghar Branch, Ghaziabad

• Total Number of employees

The Total number of employees in Bank of Baroda is 12.

• Classes

The total number of classes is 2 .

a) Skilled work men

b) Non working men

i) Clerical

a. Union Teller

b. Head Cashier

c. Computer operator / Simple Clerk

ii) Sub Staff

a. Duftary

b. Guard

c. Peon

iii) Management Teams

The number of officers in BoB are –

a. Branch Head

b. Two managers

c. 3 officers

Page 77: Hr Practice in Bank of Baroda

77

• Who is accountable to whom?

In BoB all the staff members are accountable to the Branch Manager and the

Branch Manager is accountable to –

Branch Manager

Regional Officer

Zonal Officer

Central Office / Corporate Office

Page 78: Hr Practice in Bank of Baroda

78

LITERATURE REVIEW

Bank lending in Dec up five-fold over Nov

31 Dec 2009, 0212 hrs IST, ET Bureau

After a sluggish November, bank lending picked up nearly five-fold in December over

the previous month.

According to the latest Reserve Bank of India (RBI) figures, total loans, including food

credit—loans to Food Corporation of India for food grain procurement—and non-food

credit (all other loans) amounted to Rs 29,41,293.07 crore as on December 19. This

represents a sequential growth of Rs 34,028 crore since November 27 compared to a

growth of Rs 7,698 crore in the whole of November. Of this, non-food credit grew Rs

31,342 crore in December, compared to Rs 5,247 crore in the entire month.

In a speech on Tuesday, RBI deputy governor Shyamala Gopinath had said that with the

economy posting strong growth in the second quarter of the year, credit demand was

expected to pick up. She added that this has already started reflecting in the recent

fortnight.

Speaking to ET recently, Bank of India chairman & MD Alok Misra and Bank of Baroda

CMD MD Mallya had indicated that there were initial signs of credit revival. “Going by

the credit proposals that we received for December, we are hopeful that the fourth quarter

would be better than the preceding three quarters,” said Mr Misra.

“There are signs of revival in credit demand and it is seen across sectors—infrastructure,

SME and retail,” Mr Mallya pointed out.

Oriental Bank of Commerce CMD TY Prabhu said that as of now credit demand is seen

primarily from the agriculture sector.

Page 79: Hr Practice in Bank of Baroda

79

In the second quarter ended September 2009, many banks, including State Bank of India,

Bank of India, Union Bank of India and Bank of Baroda, had reported sanctioning large

loans worth Rs 20,000-30,000 crore to the infrastructure sector. However, the borrowers

have not sought disbursal for these loans.

Bank of Baroda to open over 300 branches next fiscal

N.S. Vageesh Chennai. Dec. 20 2009

Mr M.D. Mallya, Chairman and Managing Director of Bank of Baroda, is described by

his colleagues as a ‘down-to-earth person and a thorough gentleman'. They say he has a

good grip on the business and has built on the contributions made by his predecessors. He

has taken the bank forward – instead of undoing their initiatives.

Mr Mallya's academic credentials are interesting. He did his Engineering graduation from

REC Surathkal, and then did a management program at the Indian Institute of Science

before joining the banking world three decades ago. While acknowledging the

contribution of his background in giving him analytical skills, Mr Mallya tells you that

what a banker needs most is common sense. That point is highlighted a few moments

later when we discuss new business being acquired by the bank. He points out that the

bank must chase profits rather than business volumes. He carefully monitors the

‘sustainability' of the business by looking at weekly growth figures submitted by his

officers rather than quarter-end figures — which can often be dressed up.

Page 80: Hr Practice in Bank of Baroda

80

QUESTIONS ASKED TO THE IT MANAGER OF BOB: -

Which technologies are going to be the key drivers in banking in the

coming days?

Our technology initiatives are focused on the customer. Our “Business Transformation

Program”, encompassing technology, is a customer centric initiative to offer the

convenience of banking on a 24x7 basis, at all major centers in India and abroad. This

would be done through deployment of the core banking solution integrated with delivery

channels like the ATM, Internet, phones, mobiles, kiosks, and call centers.

Mobile technologies will play a very dominant role, as they provide convenience and

ease of use. In the indian banking space it will broaden the meaning of 'anytime,

anywhere' banking to customers. With increasing mobility of the Indian workforce, our

customers want more information on the move. Besides SMS-based information on their

bank balance, they also need information about the nearest ATM/branch on their mobile.

While banking transaction on the mobile is already a reality in India, the integration of

barcodes and technologies like RFID will bring on a revolution. Mobile phones used in

European countries will be introduced in India shortly, where the ATM will be able to

connect to the phone and carry out banking transactions.

Your presence is growing in both India and abroad. What then are your

main IT/telecom requirements?

What is your investment plan for 2008-09? We are looking at network expansion to

remote branches where terrestrial links are not available. We are also planning to explore

alternative links like RF/VSAT. Migration of our existing branches to a centralized

banking system will continue as a focus area. However, through unified communication

systems, we wish to introduce a videoconferencing system for our customers/branch

officials seeking experts' opinion from a centralized pool. This could be for portfolio

management, credit options, etc. We are also exploring various alternatives for our

ambitious overseas expansion. The time to market, reliability, and costs are major

Page 81: Hr Practice in Bank of Baroda

81

concerns.

We had built our global data center in Mumbai for running our centralized banking

solution and other applications for all our branches across India and other countries on a

single platform of technology. The data center functions as a central data and application

hub of the bank for both its domestic and international operations. The center has been

designed and implemented by our technology partner HP, meeting all attributes of a tier-3

data center and having certification capability for ISO 27001.

When we started the data center, it was in a rental space. We are shifting this to our own

facilities, and this forms a large chunk of our expenditure. We are also planning to make

it green, aimed at contributing to the ecosystem. Our existing data center was designed

considering the vertical servers. With the invention of blade servers, which are horizontal

and have a very high computing density, the entire thermodynamics of the cooling system

at the data center has changed and, as the research indicates, it is extremely important to

look at an alternate design. With the introduction of the green data center, we will not

only save on energy bills, but, more importantly, will contribute to the ecosystem and

join the growing list of organizations concerned about ecology.

We are also planning to set up a “near site data center.” This is aimed at ensuring “online-

real time duplication of financial data to ensure 100% recovery. The other focus areas

include virtualization, data archival and data cleaning.

The uniqueness of your IT and telecom infrastructure?

The IT infrastructure is mission critical in our bank because our 1,600 plus domestic

branches and 43 branches in 14 countries are running on a common platform, using

centralized systems through the IT infrastructure. Our ever-expanding ATM network and

a vast card base with merchant establishments are all linked through this infrastructure.

Our value added services like e-banking, RapidFunds2India, utility bills payment, and e-

ticketing depend on the infrastructure. Being the banking sector, our services are essential

to our customers at any time and place. Our presence in different time zones and 24x7

Page 82: Hr Practice in Bank of Baroda

82

operations are supported by the IT infrastructure. The intra-bank STP is possible through

this infrastructure.

Now that convergence is taking place in ICT, how important would it be for your sector?

The banking sector is completely dependent on ICT. We expect that with the

convergence of these technologies, the operations will move toward self-service, and,

thus, will substantially bring down the cost of transaction with improved customer

convenience. There will also be a lot of savings on deployment, maintenance and

operational cost of technology within the organization.

How do you handle the IT risks and security issues?

IT security issues are handled through a well-defined information security management

structure adopted by the bank, working at strategic, tactical and day-to-day operational

level. At the implementation level, the bank has deployed various advance security

mechanism and best-of-breed products like centralized AV solution, firewalls, IDS, RSA

tokens, ADs, SSL certificates, SSO, DR solutions, among other. Security services where

the bank does not have the required competence have been outsourced to SI, who are

implementing controls as based on the security management directives.

What has been your experience in terms of services delivered by the

service provider? Our experience is reasonably good. It largely depends on a clear understanding of

expectations, backed by properly defined and documented SLAs. However, the industry

has to mature in terms of their commitment for deliveries, which, in the absence of a fast

and strong legal system, remains only at the contractual level. For instance, when we

enter into an agreement, we meet the marketing team of a vendor which promises the

heaven. But when they start delivering, our interaction is with the execution team, who

start reading the fine prints of the contract rather than the spirit of the relationship.

We also feel that lack of appreciation of virtues and follies of technology by conventional

business owners continue to be the biggest problem in unlocking business values.

Besides, integration of heterogeneous technologies to provide flexibility in delivering

Page 83: Hr Practice in Bank of Baroda

83

services is a technological challenge. Ultimately, to derive maximum value out of IT

investments, the technology has to be embedded in the business strategy of the

organization.

Through active participation of business leaders in making IT investment decisions, we

try to ensure that all IT and telecom investments are linked to the business goals. Our

outsourcing model is BOT (Build, Operate and Transfer). We have adopted the system

integrator approach, where the identified SI is responsible for designing and

implementing an end-to-end solution, confirming to functional requirements and laid

down SLAs.

Page 84: Hr Practice in Bank of Baroda

84

Excerpts from the interview:

What are your plans for branch expansion?

As of now we have 3,033 branches pan-India. We have already opened 120 branches in

this fiscal. We plan to open 80 more in the next four months. Going forward, we have

applied to the RBI for opening 250 branches in Tier-I and Tier-II centres. So in fiscal

2010-11, we will probably open over 300 branches. The basic idea is to be present in all

district centres and in places where we are not adequately represented.

How have these new branches performed?

The business that has been generated by these new branches has been substantial. On an

average, each branch would be able to mop about Rs 20 crore of business in the first year

of its existence. Therefore, from the point of business expansion, it is a remunerative

work to do. Further, if I analyse the business mix, especially under deposits, about 44 per

cent of it is from CASA (current account and savings bank accounts) – which is a

substantial improvement over our overall CASA and our existing record.

The branch opening that we are doing is also happening where we are well represented.

For example, in Gujarat, we have a good presence. But we are still opening branches

there – where it will add to our strength and synergy.

What about your presence in the southern region? What is the potential that you see

here?

In the southern region, we have about 325 branches in the four States. We have opened

about 45 branches here in the last one-year and hope to open another 75 branches over

the next one year to take our network here to 400 branches. We have already identified

centers where we expect substantial business. To give you an example, we opened a

branch in Sriperumbudur (a major industrial hub) in June and opened a branch in

Kanchipuram recently. If I take just these two branches, I expect a business of Rs 100

crore by March 2010. And I am not talking about bulk business. I want sustainable and

normal retail business. I am talking about a number of centers like this. We have a

Page 85: Hr Practice in Bank of Baroda

85

network of branches here and we have a footprint in the south. So, opening new branches

and getting business is not difficult at all.

How is your bank affected by the wage agreement between IBA (Indian Banks'

Association) and bank unions?

We have been providing 17.5 per cent for wage arrears from the day, the old agreement

ended. Coincidentally, it has been the same number that has been agreed to. Therefore,

we are not impacted either way. There is no impact on our Profit and Loss account in

terms of extra provisions.

How has your bank been impacted by the crisis in Dubai?

Dubai has been facing a bit of slowdown for the last couple of months. The recent

developments that you are talking about are only one of the triggers. We were well

prepared. We did not make any investment in real estate during the last one-and-half

years. We do not have any issue whatsoever. The little exposure that we have was

contracted more than two years ago, when rates were low and those projects are nearing

completion. In any case, we have been cautious. Our gross NPA is about 0.4 per cent and

our net NPA is almost negligible. So I don't see any problem there.

What has been the impact of restructuring of distressed assets in your domestic

operations?

In terms of percentage of restructured assets to total loan book size, it is one of the lowest

in the industry at about 3.2 per cent. But more importantly the restructured assets are

performing well. The restructuring has been restricted to re-schedulement of interest –

and these have been prompt. There has not been much of interest funding or hair-cuts for

the bank. The evidence of this is that these restructured assets have not turned into NPA –

in September or till now. Our delinquency rate has been pegged at 1.04 per cent (when

the international benchmark is about 1 per cent). In a difficult economic scenario, if we

have been able to contain our NPAs (non-performing assets) at these levels, that indicates

the quality of our assets.

Page 86: Hr Practice in Bank of Baroda

86

What are your capital raising plans?

As of September 2009, our capital adequacy ratio was 14.67 per cent, which is

significantly high. In that, Tier-I was 8.8 per cent which was again quite high. We have

sufficient headroom in both Tier-I & II to raise about Rs 10,000 to 12,000 crore.

Factoring in a credit growth of 25 per cent, we can maintain our CAR (compounded

annual return) at above 13 per cent and higher than our internal benchmark of 12.5 per

cent. In the current quarter, we have risen about Rs. 600 crore in Tier-I capital through

perpetual bonds and this has taken our CAR beyond 15 per cent. So we can manage quite

comfortably for the next two to three years with this.

Page 87: Hr Practice in Bank of Baroda

87

CONLUSION

Bank of baroda – an International bank of India. As the tag line of the bank suggests it is

the bank which has stepped in the global market and has left its foot prints everywhere.

Bank of baroda is an organization which had believed in the saving that every one has to

change with the time. BOB changed its logo in 2005 and started its new journey. While

visiting the BOB and after taking to the staff members we have found that BOB has

reached the Zenith today.

It has also been ranked as the top 25th organization by fortune 500 2009 companies.

BOB has always provided the good services and hospitality to its customers the all

branched have been applied with core banking services. Most of the branches have 12

working hours.

From the journey of BOB till date, our group has come to a conclusion that BOB has

struggled and survived only due to its mission and vision; its organization structure and

also due to its business strategies. Being the budding managers of the future we learned

that every organization has to accept the change at some point of time to be the market

leader.

BOB has given a new meaning to the banking by understanding the needs of its

customers. It has also provided a privilege to India by establishing its branches abroad.

Lastly, we would like to conclude by saying that BOB is a gem to India. An organization

writing new stories

Page 88: Hr Practice in Bank of Baroda

88

RECCOMENDATIONS

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

BOB needs to increase its number of ATMs in the country. Especially in

metropolitan cities. This is because today people don’t like standing in queues for

withdrawing money.

Bank of Baroda did very well when Rahul Dravid was endorsed as its brand

ambassadors. Today BOB has no ambassadors. Therefore it should endorse

someone as their icon.

BOB is not very much liked by the youths of the country. The middle aged and

old aged people use it more. Therefore BOB should now concentrate on young

generation. It has a huge market in them.

Page 89: Hr Practice in Bank of Baroda

89

Appendix

MR. S.K. LUTHRA

BRANCH MANAGER

BANK OF BARODA

GHANT GHAR BRANCH

GHAZIABAD.

Page 90: Hr Practice in Bank of Baroda

90

Our team’s photograph with Branch manager of BOB and

their employees

Page 91: Hr Practice in Bank of Baroda

91

Group photograph with some other employees of BOB.

Page 92: Hr Practice in Bank of Baroda

92

LIST OF REFERENCES

http://www.bankofbaroda.com/

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

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

ml

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

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

baroda/news/BOB

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

http://www.studentsguide.in/careers-in-banking-finance-

insurance/history-of-banking-in-india.html

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

credit-card.html

Page 93: Hr Practice in Bank of Baroda

93

BIBLIOGRAPHY

Robbins Stephen P., Judge Timothy A., Sanghi Seema,

Organizational Behaviour 12th Edition

Bovee,Thill, and Schatzman , Business Communication Today,

9th edition

Aswathappa K., Essantials Of Business Environment, 6th

Edition

Baroda Next; Annual Report 2008-09

Page 94: Hr Practice in Bank of Baroda

94

GLOSSARY

• BSE      Bombay Stock Exchange 

• OBU     Offshore Banking Unit 

• IPO       Initial Public Offering 

• ISO       International organization for standardization 

• HRD     Human resource Development 

 

• BSRB     Banking Service Recruitment Board 

• GM         General Manager 

 

• DGM      Deputy General manager  

• AGM      Assistant General Manager 

• HRM      Human Resource Management 

• IRS Internal Revenue Service

• SME Small and Medium Enterprises

• CAGR Compound Annual Growth Rate

• CMD Chief Managing Director

• ATM Automated Teller Machine

• DR Death Rate

• DEMOGRAPHIC DIVIDEND - The demographic dividend is a rise in the

rate of economic growth due to a rising share of working age people in a

population

• ORGANISATIONAL CULTURE - Specific collection of values and norms

that are shared by people and groups in an organization and control the way the

interact with each other.

Page 95: Hr Practice in Bank of Baroda

95

INDEX

ABSTRACT

QUESTION

LOGO

INTRODUCTION

HR MISSION

TRAINNING

PROMOTION

COMPETITORS

BUSINESS STRATEGIES

ORGANIZATIONAL STRUCTURE

LITERATURE REVIEW

QUESTIONS ASKED

EXERPTS

CONCLUSION

RECOMMENDATIONS

LIST OF REFRENCES

BIBLIOGRAPHY