Summer Internship Project On
“Analysis of Product and Services of Bank of Baroda” At
Bank of Baroda (City light, Surat)
Submitted by: Shreya Kejriwal
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Declaration I, Shreya Kejriwal, the undersigned, a Student of BK School of Business Management, Ahmedabad (Full Time MBA-2013-15), hereby declare that the Project Report entitled ― Analysis of Product and Services of Bank of Baroda is submitted in partial fulfillment of the requirement for the summer internship project. The project is undertaken as a part of Summer Internship Training during time period 19th May to 12th July, 2014. The matter embodied in this project report has not been submitted elsewhere by anybody for the award of any degree or diploma.
Shreya Kejriwal
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Acknowledgement There are countless individuals who help us in making our journey of life successful and enriching. As I resume towards the end of my summer training, I take this opportunity to thank all those individuals who have contributed in one way or the other in making this journey of mine successful and a great learning experience which will help me in my future endeavors. First and foremost, I would like to thank my project guide, Mr. Satya Narain Sharma, Chief Manager, City Light Branch, Bank of Baroda, Surat for not only providing me with invaluable advice and guidance to carry on with my project work, but also motivating me throughout my training period. He supported me continuously with his valuable knowledge and experience in the successful completion of the project. I also take this opportunity to thank all other staff members of City Light Branch for their cooperation and support. Finally I would like to thank all those who have either directly or indirectly contributed in the completion of my project.
Shreya Kejriwal
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Table of Contents SR. NO.
PARTICULARS
PAGE NO.
1.
Declaration
2
2.
Acknowledgement
3
3.
Executive summary
5
4.
Introduction to industry
6
5.
Company profile
13
6.
Product and services of Bank of Baroda
25
7.
Research methodology
47
7.1 Objective of the study
48
7.2 Type of research
48
7.3 Sampling plan
49
7.4 scope of study
50
7.5 Limitations of study
51
8.
Data analysis and interpretation
52
9.
Facts and findings
64
10.
My Learning
65
11.
Conclusion
66
12.
Recommendations and suggestions
68
13.
Bibliography
69
14.
Annexure: questionnaire
70
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Executive summary Bank of Baroda‟s principal activities are to provide banking and related services through 4,873 branches in India and 93 overseas branches. The services include accepting deposits, commercial and institutional credit, project finance, treasury, Forex, investment and risk management and other related financial services. As a part of my M.B.A curriculum I have taken my summer training in Bank of Baroda (City light branch, Surat). The report title is “Analysis of Product and Services of Bank of Baroda”. The report gives an overview of the banking Sector- introduction to the industry, present status and future of banking sector and major reforms made in this sector and company profile- SWOT analysis, business overview, various initiatives taken by bank. And awareness of customers about different types of products and services offered by Bank of Baroda. This study was conducted to find out the customer satisfaction regarding Bank of Baroda.
Report also contains information about products and services of Bank of Baroda which gives a brief idea regarding the operations of the Bank. The report is supported by figures and data wherever necessary with a view to assist in developing a clear cut understanding of the topic. Findings, conclusion and recommendations for the bank are also there which are made after a depth study of the analysis part of thesis. For this a mixed approach- a combination of quantitative and qualitative approach is used. The nature of the study is primarily analytical though specific portions of the study are descriptive in nature. The data is collected from various secondary sources like bank policies, websites etc. and some primary sources too. The findings are based on structured interviews with the bank customers. The views of these people are used to find out the need, scope, issues and challenges relating to product and services of Bank of Baroda. During the project, I was fortunate to have the learning and experiences such as: practical application of theory, understanding work and organizational culture, interacting with different stakeholders of the Bank, improvement in communication and soft skill, and many more. Overall, it was an enriching experience.
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Introduction to Industry
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Bank may be defined as a financial institution which is engaged in the business of keeping money for savings and maintaining accounts and issuing loans & credit etc. A set of services intended for private customers and characterized by a higher quality than the services offered to retail customers.
Based on the notion of tailor-made services, it aims to offer advice on investment, inheritance plans and provide active support for general transactions and the resolution of assetrelated problems.
The essential function of a bank is to provide services related to the storing of deposits and the extending of credit. Basic function may include Credit collection, Issuer of banking notes, Depositor of money and lending loans. Now a day‟s banking is not in its traditional way, with the advancement of technology it‟s focusing on more comfort of customer providing services such as:
Online banking Investment banking Electronic banking Internet banking Pc banking/mobile banking E-banking
The importance of banking sector is immense in the progress and prosperity of any State or country.
Banking in India Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.
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A brief history Banking in India originated in the last decades of the 18th century. The oldest bank inexistence in India is the State the State Bank of India, a India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve the Reserve Bank of India, which India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 69 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), stake), 23 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 30 foreign banks. They have a combined network of over 1,00,000 branches and 50,000ATMs. 50,000ATMs. Acc ording to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding18.2% and 6.5% respectively.
From World War I to Independence: The period during the First World War (1914-1918) (1914-1918) through the end of the Second World War (1939-1945), (1939-1945), and two years thereafter until the independence the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918.
Post-independence: The partition of India in 1947 adversely impacted the economies of Punjab Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed a mixed economy.This economy.This resulted into greater involv ement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included: 8|Page
In 1948, theReserve theReserve Bank of India, India's India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.
In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks b anks in India."
The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.
However, despite these provisions, control and regulations, banks in India except the State the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19 July, 1969.
Nationalization of Banks Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State of India (SBI) was only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores.
Private Banks All the banks in India were earlier private banks. They were founded in the pre-independence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up to private banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an „In principle‟ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive. 9|Page
Growth and Present Status of Banks In the early 1990s, the then Narsimha then Narsimha Rao Government embarked on a policy of liberalization, liberalization, licensing a small number of private banks. These came to be known as New Generation techsavvy banks, and included Global Trust Bank (the first of such newgeneration banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank (earlier (earlier as UTI Bank ), ), ICICI Bank and HDFC and HDFC Bank . This . This move, along with the rapid growth in the economy the economy of India, India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The revenue of Indian banks grew four-fold from US$ 11.8 billion to US$ 46.9 billion, whereas the profit after tax rose nearly nine-fold from US$ 1.4 billion to US$ 12 billion over 2001-105. This growth was driven primarily by two factors. First, the influx of Foreign Direct Investment (FDI) of up to 74 per cent with certain restrictions. Second, the conservative policies of the Reserve Bank of India (RBI), which have shielded Indian banks from recession and global economic turmoil. Currently, banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks incomparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail especially retail banking, mortgages banking, mortgages and investment services are expected to be strong. One may also expect takeovers and asset sales.
Future of Banking Sector and Initiated Reforms Financial sector reforms were initiated as part of overall economic reforms in the country and wide ranging reforms covering industry, trade, taxation, external sector, banking and financial markets have been carried out since mid-1991. A decade of economic and financial sector reforms has strengthened the fundamentals of the Indian economy and transformed the operating environment for banks and financial institutions in the country. The sustained and gradual pace 10 | P a g e
of reforms has helped avoid any crisis and has actually fuelled growth. The most significant achievement of the financial sector reforms has been the marked improvement in the financial health of commercial banks in terms of capital adequacy, profitability and asset quality as also greater attention attention to risk management. Further, deregulation has opened up new opportunities for banks to increase revenues by diversifying into investment banking, insurance, credit cards, depository services, mortgage financing, securitization, etc. At the same time, liberalization has brought greater competition among banks, both domestic and foreign, as well as competition from mutual funds, NBFCs, post office, etc. Post-WTO, competition will only get intensified, as large global players emerge on the scene. Increasing competition is squeezing profitability and forcing banks to work efficiently on shrinking spreads. Positive fallout of competition is the greater choice available to consumers, and the increased level of sophistication and technology in banks. As banks benchmark themselves against global standards, there has been a marked increase in disclosures and transparency in bank balance sheets as also greater focus on corporate governance.
Major Reforms in Banking Sector Some of the major reform initiatives in the last decade that have changed the face of the Indian banking and financial sector are:
Interest rate deregulation. Interest rates on deposits and lending have been deregulated with banks enjoying greater freedom to determine their rates.
Adoption of prudential norms in terms of capital adequacy, asset classification, income recognition, provisioning, and exposure limits, investment fluctuation reserve, etc.
Reduction in pre-exemptions – lowering of reserve requirements (SLR and CRR), thus releasing more lendable resources which banks can deploy profitably. Government equity in banks has been reduced and strong banks have been allowed to access the capital market for raising additional capital.
Banks now enjoy greater operational freedom in terms of opening and swapping of branches, and banks with a good track record of profitability have greater flexibility in recruitment.
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New private sector banks have been set up and foreign banks permitted to expand their operations in India including through subsidiaries. Banks have also been allowed to set up Offshore Offshore Banking Units in Special Economic Zones.
New areas have been opened up for bank financing: insurance, credit cards, infrastructure financing, leasing, gold banking, besides of course investment banking, asset management, factoring, etc.
New instruments have been introduced for greater flexibility and better risk management: e.g. interest rate swaps, forward rate agreements, cross currency forward contracts, forward cover to hedge inflows under foreign direct investment, liquidity adjustment facility for meeting day-to-day liquidity mismatch.
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Company Profile
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Indian state-owned banking banking and financial services company Bank of Baroda (BoB) is an Indian state-owned headquartered in Vadodara in Vadodara in Gujarat, India. It is the second-largest bank in India, after State State Bank of India, India, and offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialized subsidiaries and affiliates. During FY 2013-14, its total business was 9,659 billion. In addition to its headquarters in its home state of Gujarat, it Gujarat, it has a corporate headquarters in the Bandra the Bandra Kurla Complex in Mumbai. in Mumbai. Based on 2014 data, it is ranked 801 on Forbes on Forbes Global 2000 list. BoB has total assets in excess of 6,595 billion, a network of 4966 branches (out of which 4873 branches are in India) and offices, and over 5000 ATMs. Growing its presence across new regions and strengthening its equity in existing markets, Bank of Baroda is on the path to establish itself „round the clock around the globe.' The bank is exploring out-of-the-box means to identify new ways to tailor its growing repertoire of products and services to meet segment-specific requirements across regions. Automation-led process and cost optimization, orchestration of the offices network, and greater attention to compliance with global regulations are aggressively being focused on to help the bank achieve its ambitious goals. Bank of Baroda is gearing to leverage the opportunities that a globalized era presents and devising nimble ways to skirt its threats. The bank is now charting a coherent strategy to not just cope but break new ground and emerge with the winning edge in the changing global business scenario. Bank of Baroda is amongst first in the industry to complete an all-inclusive rebranding exercise wherein various novel customer centric initiatives were undertaken along with the change of logo. The initiatives include setting up of specialized NRI Branches, Gen-Next Branches and Retail Loan Factories/ SME Loan Factories with an assembly line approach of processing loans for speedy disbursal of loans. Ever since it‟s rebranding in 2005, Bank has consistently promoted its major strengths viz. large international presence; technological advancement and superior customer service etc. Bank had introduced the sub brand BARODA NEXT-State of the Art-Straight from the Heart to showcase how it has utilized technology to nurture long term relationships for superior customer experience. The sub brand has been reinforced by alternate delivery channels such as internet banking, ATMs, mobile banking etc. and robust delivery outfits like Retail Loan Factories, SME Loan Factories, and City Sales Office etc. Bank‟s constant endeavor to strengthen its branch/ATM network combined with well-informed staff offering personalized service at its various touch points have enhanced customer interactions and satisfaction. Thus the Bank has firmly positioned itself as a technologically advanced customer-centric bank.
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History of the Bank 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, trust worthy 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 territor ies.” ies.” These words are etched into the mind, body and soul of what has now become a banking legend. Following the Maharajas words, the emblem has been crafted to represent wealth, safety, industrial development and an inclination to better and promote the country‟s agrarian economy. This emblem shows a coin, symbolizing wealth, embossed with an upraised palm, a safety cover for the depositor‟s money, with a cogwheel that promotes industrial growth in tandem with the two corn ears that stand for the progress of the staple agricultural growth in the country. cou ntry. 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. No history is complete without mention men tion of its heroes, mostly ordinary people, peo ple, who turn in extraextra ordinary performances and contribute to building an institution. Over the years, there have been thousands of such people. The Bank salutes these "unknown soldiers" who passionately helped to create the legend of Bank of Baroda. There were also the leaders, both corporate and royal, who provided the vision and guided the Bank through trail blazing years, and departing, left behind footprints on the sands of time. This Roll of Honor will be incomplete without mention of men, of the stature of Maharaja Sayajirao Gaekwad, Sampatrao Gaekwad, Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM Chokshi.
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Mission Statement To be a top ranking National Bank of International Standards committed to augmenting stake holders' value through concern, care and competence.
Business Strategy
Focusing upon customer needs and preferences and fulfilling them in a cost effective manner by leveraging strong technology platform Attain a well balanced growth in its loan book across different sectors like retail, SME, agriculture, wholesale etc. and across different geographies Further strengthen its systems for credit origination and monitoring Maintain a high provision coverage ratio to protect the quality of its asset portfolio from any downside growth risks Develop innovative products and services that attract targeted customers and address inefficiencies in the Indian financial sector Back office functions moved to hub, so branch staff can spend time with customers cu stomers
SWOT Analysis Strength
Well diversified branch distribution One of the biggest names in public sector banking CBS implementation in its branches Strong concentration in the western region makes sure that it is CASA rich Better focus on international market Strong asset quality with healthy coverage ratio Improvement on the ROE margins in the last fiscal year International presence adds to the credibility
Weakness
Lesser branches across the country when compared with with SBI and PNB Inadequate talent pool to compete with strong private banks Late on introducing latest products in the market Lesser strategic initiatives as compared to larger private banks Due to focus on international branches, local focus sometimes gets diluted
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Opportunities
International branches give scope to expand in other economies Expansion in the rural areas to include the unbanked and under banked BoB Caps can contribute more to the revenues Cost to Income could improve in coming years Scope to improve non-interest income Focus more aggressively on retail banking
Threat
New banking licenses by RBI NPA levels could rise as there is over reliance on corporate and SME‟s. Contribution from the foreign business of the bank is around a round 25% on the bottom line Foreign banks
Business Description The bank offers a wide array of customized and specialized services to meet the diverse needs of its customers, and these services have been categorized into Personal Banking, Business Banking, Corporate Banking, International Banking, Treasury Banking and Rural Banking services. The company offers fixed, current, and savings deposits; and home loans, mortgage loans, advance against securities, education loans, auto loans, term finance, small scale industries and SME loans, traders loans, working capital, export and import finance, bill finance, bridge loans, project finance, and infrastructure finance.
Subsidiaries Domestic
BOBCARDS Ltd. BOB Capital Markets Ltd. Nainital Bank Ltd.
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Overseas
Bank of Baroda (Botswana) Ltd. Bank of Baroda (Kenya) Ltd. Bank of Baroda (Uganda) Ltd. Bank of Baroda (Guyana) Ltd. Bank of Baroda (New Zealand) Ltd Bank of Baroda (Tanzania) Ltd Bank of Baroda (Trinidad & Tobago) Ltd. Bank of Baroda (Ghana) Ltd.
Business overview An overview of various business segments
Retail Banking Bank of Baroda has developed a strong retail banking franchise over the years. Retail Banking is one of the key drivers of the Bank‟s growth strategy and it encompasses a wide range of products delivered to customers through multiple channels. The Bank offers a complete suite of products across deposits, loans, investment solutions, payments and cards to help customers achieve their financial objectives. The Bank focuses on product differentiation as well as a high level of customer-service to enable it to build its retail business. The Bank has continued to develop its risk management capabilities in Retail business, both from a credit and operations risk standpoint. The branch channel is effectively utilized for growing the retail assets business, with loan and card products p roducts being offered to existing clientele. The growth areas identified by the Bank are in the areas of residential mortgages and passenger car loans. Of the total retail loans portfolio, 57.47% is in the form of secured loans (residential mortgages and auto loans). The Bank offers a wide range of payment solutions to its customers in the form of debit cards, prepaid cards and credit cards. As on 31st March 2014, the Bank has a base of approximately 99,000+ debit cards, placing it among the leading players in the country. The Bank also distributes third party products such as mutual funds, Bank assurance products (life and general insurance), online trading, and Gold and Silver coins through its branches. The retail business of the Bank is supported by innovative services and alternate channels which provide convenience of transactions to customers. These channels include an extensive ATM network, internet banking, mobile banking and phone banking. 18 | P a g e
International Retail International Retail Business focuses specifically on the overseas sales channel, retail foreign exchange business, remittances and retail businesses in overseas centers such as Hong Kong and Singapore, where the Bank has a presence. The products offered in the area of retail Forex and remittances include travel currency cards, inward and outward wire transfers, traveler‟s cheques and foreign currency notes, remittance facilities through online portals as well as through collaboration with correspondent banks, exchange houses and money transfer operators.
Business Banking a well distributed network of branches and a Business Banking leverages the Bank‟s strengths – a strong technology platform to offer the best in transaction banking services. The Bank offers a range of current account products and cash management solutions across all business segments covering corporates, institutions, central and state government ministries and undertakings as well as small and retail customers. The Bank is one of the top CMS providers in the country. The Bank acts as an agency bank for transacting government business offering services to various Central Government Ministries / Departments and other State Governments and Union Territories. In order to provide solutions for business to effectively manage their funds flow, the Bank has introduced liquidity management solution for corporate customers. Similarly, a single window for all payment requirements was launched with several advanced features such as setting a daily transaction limit for corporate users, setting transaction limits for individual beneficiaries, prioritizing payment methods, online stop payment and cancellation facilities.
Corporate Credit Bank of Baroda has built a strong corporate banking franchise across corporate, liability and asset businesses. Bank provides customized structuring and financing solutions in a timely and comprehensive manner to its corporate customers with a focus on building out a high quality credit portfolio. The Bank is among market leaders in Debt Capital Markets and loan syndication business across segments, sectors and geographies. The Bank also provides full range of Treasury and Trade Finance solutions to its corporate clients. The Bank offers technology enabled transaction banking and cash management services to customers across Government, financial institutions and corporate segments. Bank‟s infrastructure business includes project and bid advisory services, project lending, debt syndication, project structuring and due diligence, securitization and structured finance.
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Treasury The Bank has an integrated Treasury, covering both domestic and global markets, which manages the Bank‟s funds across geographies. The Bank‟s treasury business has grown substantially over the years, gaining market share and continuing to be among the top five banks in terms of forex revenues. The Treasury plays an important role in the sovereign debt markets and participates in the primary auctions held b y RBI. It also actively participates in the secondary government securities and corporate debt market. The foreign exchange and money markets desk is an active participant in the inter- bank/ FI space. The Bank has been exploring various cross border markets to augment resources and support customer cross-border trade. The Bank has emerged as one of the leading providers of foreign exchange and trade finance services. It provides a gamut of products p roducts for exports exp orts and imports as well as retail services. Its cutting edge technology provides comprehensive and timely customer services.
International Banking The international operations of the Bank form a key enabler in its strategy to partner with the overseas growth potential of its domestic clientele, who are venturing abroad or require nonrupee funds for domestic projects. The Bank now has a foreign network of branches in 14 other countries, which include Bahamas, Bahrain, Belgium, China, Fiji Islands, Hong Kong, Mauritius, Republic of South Africa, Seychelles, Singapore, Sultanate of Oman, United Arab Emirates, United Kingdom and United States of America and tree representative offices (Australia, Malaysia Malaysia and Thailand.) While corporate banking, trade finance, treasury and risk risk management solutions are the primary offerings, the Bank also offers retail liability products Further, the Bank‟s alliances with banks and exchange houses in the Middle East provide the support for leveraging the business opportunities emanating from the large NRI Diaspora present in these countries.
Small and Medium Enterprises The Small and Medium Enterprises (SME) segment is a thrust area of the Bank. The business approach towards this segment, which is expected to contribute significantly to economic growth in future, is to build relationships and nurture the entrepreneurial talent available. The relationship based approach enables the Bank to deliver value through the entire life cycle of SMEs. The Bank has segmented its SME business in three groups: Small Enterprises, Medium Enterprises and Supply Chain Finance. The Bank extends working capital, project finance as well as trade finance facilities to SMEs.
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Information Technology Technology is one of the key enablers for business and delivery of customized financial solutions. The Bank continues to focus on introducing innovative banking services through investments in scalable and robust technology platforms that delivers efficient and seamless services across multiple channels for customer convenience and cost reduction. The Bank has also focused on improving the governance gov ernance process in IT. The Bank has undertaken various steps in order to align itself towards RBI guidelines on security and governance, including setting up of Board and Executive level committees and working on IT operations and other key areas.
Agriculture The Bank continues to drive and expand the flow of credit to the agricultural sector. More than 400 branches of the Bank have dedicated officers for providing farm loans. Products and solutions are created specifically with simple features and offered at affordable rates to rural customers. The Bank has also adopted a value-chain approach, wherein end-to-end solutions are being provided for various v arious stakeholders. It also offers various customized solutions to meet the regional requirements.
Human RESOURCES The Bank aims in creating and developing human capital to realize its vision of nurturing a mutually beneficial relationship with its employees. Employee engagement and learning, leadership development, enhancing productivity and building multiple communication platforms thus occupied center stage in the Bank ‟s ‟s HR objective. The Bank continues to maintain a strong employer brand in the financial services sector especially on the campuses of the premier business schools of the country. Bank of Baroda has a middle age workforce with an average age of 46 years.
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Various initiatives taken up by the Bank
Strategic initiative The Bank‟s focus was optimize human resource management in a highly motivating work environment, rawing maximum mileage out of the available Information Technology and imbibing a full-fledged marketing culture to promote a sense of professionalism in approach and attitude. BOB completed Core Banking Solution (CBS) rollout in 4,952 domestic branches covering 94% of its business as at 31st March, 2014. The Bank launched several new IT products and services such as Phone Banking, Corporate Cash Management System, Payment Messaging Solution and Global Treasury. The Bank took many initiatives introducing new products both on assets and liability sides such as Loan for Earnest Money Deposit, Baroda Additional Assured Advance to NRIs, Baroda Bachat Mitra etc.
In its role as a partner to the rural development, the Bank, besides meeting all its credit deployment targets, established four Baroda Swarojgar Vikas Sansthan for imparting training to the unemployed youth and facilitating their gainful self-employment. It organized awareness programmes for SME borrowers to educate them about various products, services and precautionary steps to be taken in view of global financial crisis.
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 ca rds 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.
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Quality Initiatives In its relentless striving for quality perfection, the Bank secured the ISO 9001:2000 certifications for 15 branches. By end of the current financial, the Bank is targeting 54 more branches for this quality certification.
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 d evelopmental 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 c apital adequacy adequac y required new capital management strategies. In 1995 the Bank raised Rs 300 crores through a Bond issue. In 1996 the Bank tapped the capital market with an IPO of Rs 850 crores, despite adverse market conditions prevailing then, the issue was oversubscribed, reflecting the positive public perception of the Banks 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 3918 computerized branches, covering 75% 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 23 | P a g e
banking, telephone banking. The e-banking e-bankin g 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.
Corporate Social Responsibility (CSR) Initiatives Bank has always upheld inclusive growth high on its agenda. Bank has established 36 Baroda Swarojgar Vikas Sansthan (BSVS) for imparting training to unemployed youth, free of cost for gainful self-employment & entrepreneurship skill development and 52 Baroda Gramin Paramarsh Kendra and for knowledge sharing, problem solving and credit counseling for rural masses across the country. Bank has also established 18 Financial Literacy and Credit Counseling Centers (FLCC) in order to spread awareness among the rural masses on various financial and banking services and to speed up the process of Financial Inclusion.
The Future Revolutionary and discontinuous changes in the operating environment are 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 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 Banks resolves 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 pl atinum jubilee year - a promising future is the sequel to a glorious past.
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Product and Services Of Bank of Baroda 25 | P a g e
Bank of Baroda offers its services majorly in six parts: A. Personal Banking B. Business Banking C. Corporate Banking D. International Banking E. Treasury Banking F. Rural Banking
A. Personal Banking
1. Deposits offered by Bank of Baroda: a) Fixed Deposits Bank of Baroda offers simple Fixed Deposits (at very competitive interest rates), which can be opened with a minimum investment of Rs 1,000. The tenure of their deposit must be a minimum of 7 days for deposit amount of Rs.100/- lacs and above & minimum 15 days for amounts less than Rs.100/- lacs. Fixed deposit accounts can be opened with instructions payable to 'either or Survivor‟, payable jointly, payable to any one of the depositor‟s etc. Following fixed deposit schemes are offered by bank:
As Recurring Deposits: o o o o
Recurring Deposit Baroda Samriddhi Quarterly Recurring Deposit Baroda Samriddhi Half Yearly Recurring Deposit Yatha Shakthi Jama Yojana
For Deposits up to 12 months: o
Short Deposits
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For Deposits over 12 months: o o o o o o
Baroda Double Dhamaka Fixed Deposit Monthly Income Plan Quarterly Income Plan Half Yearly Income Plan Regular Income Cum Recurring Deposit Capital Gain Account Scheme, 1988
b) Current Deposits co mpanies, institutions, HUF, individuals etc., who Current Deposits product is ideal for firm, companies, need banking facility more frequently and provides flexibility through overdraft facility. This is one of the most basic and flexible deposit options, allowing transaction without limiting the numbers. Bank of Baroda's Current Deposits are the back-bone of all trading activities. Following current account options are available:
o o o
Baroda Advantage Current Account Baroda Premium Current Account (BPCA) Baroda Premium Current Account-Privilege (BPCAP)
c) Savings Deposits Depending on the nature of the account and the governing terms and conditions, Bank of Baroda offers following Savings Accounts: o o o o o o
Baroda Centenary Savings Account Savings Bank Account Super Savings Account Baroda Basic Savings Ac Baroda Salary Advantage Saving Account Baroda Bachat Mitra
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2. Gen-Next services offered by Bank of Baroda: a) Gen-Next Junior This is a Special kind of Savings Bank Deposit product for children upto 18 years of age to be made available in Gen-Next Gen-Nex t Pune branch. Account will be operated by b y the customers using withdrawal slip, Cheque leaves, Standing instruction, ECS (debit), Debit Card, Internet banking facility etc. Interest rate, periodicity and method of application of interest will be similar to usual Savings Bank a/c. The other provisions like transfer to dormant, in operative etc. will be same as applicable to usual Savings Bank a/c.
b) Gen-Next Lifestyle
It is a term loan(combo pack) for purchase of Home Furnishings / Consumer Durable goods goods (includes color T.V., video camera / refrigerator / washing machine / music system / airconditioners / cooking system etc.), vehicle(two wheeler and four wheeler), laptop/pc or any other electronic gadget. Minimum age to apply is 21 years and maximum age is 45 years.
c) Gen-Next Power
This is a special Savings Deposit product having an in built feature of overdraft facility to be available at Gen-Next Pune branch. The product is targeted to working executives and other working professionals. There is no minimum balance requirement in the account and as such no service charges shall be levied towards this. Other Features
Anywhere banking facility. Personalized Debit Card. Free Internet Banking facility. Travel, Investment and FOREX Support. Free Demat Account opening. e - Trading facility available. Free NEXT GEN GOLD Credit Card with Add on card for spouse (As per eligibility criteria fixed by BOB Cards Ltd.).
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d) Gen-Next Suvidha
This is a Recurring Deposit product enabling the customer to make regular savings on monthly basis and earn higher interest. “Gen-next Suvidha” Account can be opened with monthly installments of Rs.100/- or above & in multiples thereof with a maximum of Rs.10, 000/- per month.
3. Loan services offered by Bank of Baroda:
Home Loan Home Loans to NRIs / PIOs Home Improvement Loan Interest Subsidy Scheme for Housing The Urban Poor P oor (ISHUP) Loan Against Future Rent Receivables Mortgage Loan Advance Against Securities Education Loan Baroda Career Development Loan Auto Loan Two Wheeler Loan Car Loan to NRI Traders Loan Loan to Doctors Baroda Ashray (Reverse Mortgage Loan) Personal Loan Baroda Advance Against Gold Ornaments /Jewellries (At Urban & Metro Cen tres) Loan for financing Individuals for subscription to Public Issues /IPO Baroda Additional Assured Advance (AAA) (Resident / NRIs /PIOs) Baroda Traders Loan Against the Security of Gold Ornaments /Jewellries (At Urban & Metro Centres) Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS) Baroda Traders Gold Card Scheme Baroda Premium Personal Loan
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4. Credit Cards offered by Bank of Baroda: a) BOBCARD Signature (Visa) BOBCARD presents these premium cards to offer its gratitude to the High Net worth Individuals. Exclusively designed, these cards are packed with great features and benefits. So, get your signature Visa today and be a part of the evolution.
b) BOBCARD Platinum (Visa, Master & Assure) Bob card Platinum Credit Cards are designed to suit lifestyle and stature and to empower the distinction and recognition you desire. Its inbuilt offers and privileges bring elegance to your life at ease.
c) BOBCARD Titanium (Master) Bobcard Titanium is an innovation to take you beyond the boundaries of Classic & Gold Cards. It is a value-added, distinctive credit card that brings together exclusive MasterCard privileges with inherited economy and suite of Bobcards. This card is guaranteed to assist you to transform your lifestyle in the most cost effective manner.
d) Co-Branded Card Bobcard BBA cobranded Platinum Credit Card is an attempt to pay gratitude to enduring and enriching relationship of Bank of Baroda and Bombay Bullion Association over several years. The card is exclusively designed for BBA members. Its distinctive features, benefits and privileges give an extra mileage to BOB BBA relationship.
5. Debit Cards offered by Bank of Baroda: a) Baroda Vision Electron
Baroda Visa Electron Debit Card is an ideal choice for your requirement of performance, simplicity, flexibility, and worldwide recognition. For securing hotel reservations, buying books online, or making everyday purchases Baroda Electron, offers value proposition, reliable form of payment, recognized in more than 170 countries around the globe. 30 | P a g e
b) Baroda Maestro
Baroda Maestro meets the growing requirement of enhanced security in debit card usage and creates customer confidence. In this card, authorization happens through Personal Identification Number, even for shopping transactions, similar to ATM transaction. The card is issued in affiliation with Master Card and is usable at any ATM/ Merchant outlet having MasterCard logo and NFS member bank ATMs in the country. Baroda Maestro card is an International debit card which can be used within the country and abroad. c) Baroda Master Card „Combi‟ Gold
Baroda Master Card „Combi‟ Gold, a golden choice for our premium customers, which is envisaged to meet their requirement of higher spend/cash withdrawal. The card is issued in affiliation with Master Card and is usable at any ATM/ Merchant outlet having MasterCard logo and NFS member bank ATMs. The card makes merchant and online shopping very convenient and safe. Baroda Gold debit card is usable within India and abroad. d) Baroda Visa Platinum
Baroda Visa Platinum is an exclusive offer for all our esteemed customers allows higher spending power, more cash withdrawal limits apart from a host of offers extended by Visa International and Bank. A true privileged class experience. ex perience.
e) RuPay Debit Card
It can be used only with PIN hence a more secured debit card. Card would be accepted only at secured PIN based POS terminals. It is available to all customers eligible for debit card issuance.
6. Services offered by Bank of Baroda: a) Demat
An individual, Non-Resident Indian, Foreign Institutional Investor, Trusts, Clearing Houses, Financial Institution, Clearing Members and Mutual Funds can open a Demat account.
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Key Benefits:
Buy and sell shares and stock of any company listed on the stock exchange of India i.e. NSE and BSE Make on line investment in mutual fund. Apply in IPO Trade in Futures and Options No threat of loss of shares due to faulty/bogus/forged faulty/bogus/forged delivery. Dividend and issuance of bonus shares are directly credited into linked accounts and Demat accounts respectively. No share transfer fees or stamp duty. Application can be made vide facility of ASBA (Application Supported by Blocked Amount) wherein amount does not get debited into the account and is remitted only when shares are allotted. The shares trading account enables you to view live prices watch lists and place transactions. The deposit account is linked to the trading account for seamless transfer of funds.
b) Baroda Health
It is a Medical Insurance Scheme, available only to account holders of our Bank, which takes care of the hospitalization expenses incurred by the customer up to the amount of sum insured. Key Benefits:
Very low premium In this co-branded product, single premium (generally payable for a single person) is payable and an d Medical Health insurance cover is available to family of -4- (self, spouse and 2 dependent children) up to the amount insured without any additional premium. A member or all the members in insured family can avail hospitalization benefits during the policy period, to the extent of aggregate sum not exceeding the sum insured. Premium paid is eligible for Income Tax exemption under Section 80 D as per Income Tax Rules.
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c) Remittances (Baroda Money Express)
The Baroda Money Express remittance facility ensures instant payments and transfer of funds, saving you and your associates from waiting endlessly for funds to get credited. The facility is available at 345 branches across 53 centers in India inclusive of all branches in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Mumbai, and Pune. This facility is available for both retail and corporate customers enabling efficient and easy transfer of money. So no more delays in transfer of funds typical of Banker's Banker's Cheque, Demand Cheque, Demand Drafts, Mail Drafts, Mail Transfers and Telegraphic Transfers.
d) Collection Services
All branches of Bank of Baroda have the facility of collecting Cheque, Demand Drafts, Interest Warrants, Dividend Warrants, and Refund Orders, Clean Bills and Documentary Bills from customers and various centers. All Cheque and other instruments are collected into properly introduced accounts and sent for collection on the day of receipt from the customers or the next working day. The Funds collected in this offering are credited to the customer's account within a guaranteed period of 7 days. Bank of Baroda's BOB Quick ensures a better collection service, which creates new avenues of income and ensures better investment of funds.
e) ECS (Electronic Clearing Services)
This is a unique system under which Bank of Baroda helps companies and institutions making heavy payments disburse these amounts directly into the bank accounts of the beneficiaries such as account holders, shareholders, investors etc. Key Benefits:
Prompt payment on the due date. Convenient receipt of money reduces trips made to the bank for depositing dividend/interest warrants. Elimination of fraudulent encashment against instruments lost in transit.
f) Government Business
Apart from rendering all other Personal banking services to its customers/public, Bank o Baroda also works as Agency Bank for undertaking various v arious types of Govt. Business viz. 33 | P a g e
Following schemes are available at Bank of Baroda:
Public Provident Fund 1968 Scheme (PPF) Senior Citizens Savings Scheme, 2004 (SCSS 2004) Govt. of India 8% Savings Bonds 2003 (Taxable) National Pension System (NPS) & NPS – Lite Lite – Swavalamban Swavalamban Collection of Central/State Taxes
7. Locker Facility offered by Bank of Baroda: Bank of Baroda offers a safe, trustworthy space to store your valuables, jewellery, documents and other things dear to you. Key Benefits:
State-of-the-art Lockers, the safe deposit vaults with fully equipped, latest burglar alarm systems. For additional safety, the Locker holder assigns a code word which further increases security. Available in different sizes as per your requirement. These Lockers and their contents can be nominated to people near and dear to you.
B. Business Banking
1. Deposits a) Short Term Fixed Deposits
Ideal for those considering a transitory deposit during their business ventures. The extremely short period of one year also helps in fast liquidity in addition to a good rate of interest.
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Key Benefits:
Ideal for all transitory savings. High liquidity with good returns. Avail of Overdraft / loan against deposit up to 95% of the deposit amount without the hassles of a guarantor or processing fee or, filling of an y forms etc. Ideal for meeting short-term commitments as these advances are also available for a single day and till a maximum of 12 months. On pre-matured withdrawal of your deposits amount, interest will be calculated at 1% below the rate applicable for the period of deposits. Can be used as margin money mone y for Non-fund based facilities.
b) Long Term Fixed Deposits
Ideal for long term investments. Secure money that earns good returns and can be easily liquidated. Key Benefits:
Easy liquidity even with a long term period. Increasing interest in proportion to the increasing term of deposit
c) 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.
2. Loans and Advances offered by Bank of Baroda: In addition to Working Capital Finance and Term Finance, Bank of Baroda has laid out a comprehensive suite of products specifically catering to SME Borrowers. Loans and Advances offered by Bank are as follows:
Baroda Professionals Scheme for Textile Industry Working Capital Finance Term Finance
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MSME Baroda SME Loan Pack Baroda Vidyasthali Loan Baroda Arogyadham Loan Baroda Laghu Udhyami Credit Card Baroda Artisans Credit Card (BACC) Baroda Weavers Credit Card Technology Upgradation Fund Scheme (TUFS) For Textile And Jute Industries Credit Linked Capital Subsidy Scheme (CLCSS) For SSI S SI Units Composite Loans Collateral Free Loans Under Guarantee Scheme Of Credit Guarantee Fund Trust For Micro And Small Enterprises SME Short Term Loans SME Medium Term Loans Baroda SME Gold Card Scheme for Financing Energy Efficiency Projects Baroda Overdraft Against Land and Building Prime Minister's Employment Generation Programme (PMEGP) Loans Under Interest Subsidy Eligibility Certificate Scheme of Khadi & Village Industries Commission (KVIC-ISEC) Baroda MSME Capex Card & Baroda MSME Capex Loan
3. Key Services offered by Bank of Baroda: a) Remittances Key Benefits:
Can be used to transfer money to the beneficiary's account in the same bank, or another bank or even to their residential/office address, thus offering convenient options. This electronic remittance is the fastest way of transferring money from one place to another, at no additional cost. Added convenience of hassle free and quick customer service. The facility is available at 345 branches across 53 centres in India inclusive of all branches in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Mumbai, and Pune.
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b) Collection Services
All branches of BoB are prompt in terms of the collections and forwarding of cheques and other instruments. For state capitals, amount is credited only after 10 days. If these instruments are not collected within 14 days of lodgement, interest @ 2% per annum over savings bank rate is paid and is credited to the customer's account, without the customer having to claim it. Branches also accept requests for collection of Loan Certificates issued by Joint Stock Cos.; prize money of Lottery Tickets, Foreign Currency Notes etc.
c) ECS
This is a unique system under which Bank of Baroda helps companies and institutions making heavy payments disburse these amounts directly into the bank accounts of the beneficiaries such as account holders, shareholders, investors etc. Key Benefits: Corporate bodies who have periodic, large volume payments to a fixed group investors / beneficiaries enjoy the following benefits:
Savings in administrative cost presently being incurred for printing of paper instruments in MICR format and dispatching them by Registered Post. Elimination of fraudulent encashment due to loss in transit of instruments. Reconciliation of transactions is made automatic. By the time the ECS cycle is completed, the user institution gets electronic data file from its bank with the date of payment and banker's confirmation thereon. Cash management becomes easier as arrangement for funds is to be made only on the specified date. Ensures better customer / investor service. In line with practices adopted by best companies the world over who pay their shareholders / investors and customers.
d) Debit cards
The Bank of Baroda International Debit Card is accepted at over 10000 Visa Electron ATMs in India and 850000 ATMs worldwide. The card is also accepted at any 100000 merchant outlets in India and around 13 million globally. The card enables you to enjoy the convenience of cash-less purchasing power without the fear of overdrawing your account.
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Key Benefits:
Take advantage of the most widely accepted card and be able to withdraw from any ATM displaying the VISA logo, in India and abroad. At VISA Electron merchant shops, it can also serve as your electronic purse, and money gets debited instantly from your account, as you pay. The Card allows you to get mini-statements from Bank of Baroda ATMs, or to check the balance in your account, avoiding visits to even our nearest branches.
e) Baroda e-Gateway
Bank of Baroda provides a facility, to receive payment online from any debit/credit card, called „Baroda e-Gateway‟ (Internet Payment Gateway), which is a safe, secure and trusted payment solution for e-Commerce/online business. Baroda e-Gateway is ideal for Schools and Colleges for Fee Collection, Travel agents, Merchants who wish to sell online products / services, Associations to receive subscriptions from their members, Govt. & Semi-Government offices, Municipal Corporations, Electricity Boards and other Utility Payment Services companies to collect dues/payments from consumers etc.
4. Locker Facility offered by Bank of Baroda: Bank has adopted the various guidelines issued by Reserve Bank of India in connection with allotment of Safe Deposit Lockers and Safe Custody articles facility and allowing access to the nominees / survivors / legal representatives in the event of the death of the Locker Hirer/s and Depositor/s of Safe Custody articles. The lockers will be allotted on first come first served basis to the customers only. A waiting list register is maintained by the branches for the purpose. The Bank has the facility of nomination in case of deposit of Locker and safe custody articles facility. However, the facility of nomination is not available in case of deposit of safe custody articles by more than one person.
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C. Corporate Banking
1. Wholesale Banking Under Wholesale Banking the corporate customers are identified as Large and Mid-corporates. Companies having annual sales turnover of over Rs. 500 crore are classified as Large Corporate and those having annual sales turnover between Rs 100 crore to 500 crore are classified as Mid Corporate. Under Wholesale Banking it has been proposed that Large & Mid M id Corporate customer of the Bank is located at the identified branches for providing them better services. Initially 11 important centers, 2 at Mumbai & 1 each at Delhi, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Baroda, Kolkata and Raipur have been identified for the rollout of Wholesale Banking. The Corporates can take advantage of the expertise available at Wholesale Banking Branches.
The following are the areas in which Client Service Team can help the Large & Mid Corporate:
Trade Finance products Cash Management Products Treasury Products Bridge Loans Syndicated Loans Infrastructure Loans Cross Currency/Interest Rate Swaps Foreign Currency Loans and many more depending upon the needs of the Corporate.
2. Deposits a) Short term
Ideal for those considering a transitory deposit during their business ventures. The extremely short period of one year also helps in fast liquidity in addition to a good rate of interest. Minimum deposit required would be Rs.1000/-, which has to be made for a minimum of 7 days, and can then be extended to a maximum of 12 months. Compound interest is calculated quarterly and the rate is decided based on the maturity period.
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b) Flexi Deposit Schemes
Ideal for corporations that have huge cash flow and need to transfer and manage funds in excess of 5 crores or more. Deposits can be maintained for as little as 7 days to one o ne full year. Key Benefits: Targets high value customers offering them the following conveniences: convenien ces:
Flexibility - Allows withdrawals of deposit without any restriction on amount, even before the maturity of the deposit, without a charge for premature withdrawal. The Interest on such premature withdrawal will be paid at the rate applicable to the period for which the deposit has remained with the Bank. Withdrawals can be made by just serving one days‟ notice.
c) Term Deposits
It is ideal for long term investments. Secure money that earns good returns and can be easily liquidated. Key Benefits:
Avail of Overdraft / loan against deposit up to 95% of the deposit amount (plus accrued interest) without the hassles of a guarantor or processing fee or, filling of a ny forms etc. Interest will be charged at 1.50 % over the deposit rate with monthly rests in case of depositor being the borrower and higher in case your friends wants to avail of the loan. No processing fee is charged on loans and advances taken against Bank's Deposits. For deposits up to Rs. 5 Lakhs, no interest will be charged for premature withdrawal, provided it has remained with bank for a minimum period of 12 months. Automatic renewal of deposit on maturity, thereby avoiding interest loss in the absence of instructions from you.
3. Loans and Advances For immediate financial need in times, Bank of Baroda has a host of loan options for a corporate to choose from. These enable smooth functioning without monitory hassles. 40 | P a g e
Loan and advances offered by Bank of Baroda is –
Working Capital Line of Credit Export Finance Bill Finance FCNR (B) Loans Bridge Loans Advance against Shares Loan against Rent Receivables Term Finance Short Term Corporate Loan Project Finance Infrastructure Finance Takeover of Accounts Non Fund Based Services
4. Services In addition to the loans and advances offered by Bank of Baroda, there are other value-added services that it provides to its corporate customers. The services offered are listed as follows:
Appraisal & Merchant Banking o o o
Appraisal Loan Syndication Other Consultations
Cash Management & Remittances o o
Cash Management Service Remittances & Collection
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D. International Banking 1. 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/ Authorized 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 O ffices for the required information/ guidelines.
2. External Commercial Borrowings Bank of Baroda 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 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) has been set up at BCC, Mumbai to pay focused attention to the international merchant banking needs of Indian corporates with special emphasis on External Commercial Borrowing.
3. FCNR (B) Loans Corporate can avail loans from Bank of Baroda. The Indian corporates/ firms are allowed to raise the funds through foreign currency loans at select Indian branches within the prevailing policy guidelines of the Bank/ RBI. Key Benefits:
FCNR (B) loans are beneficial to the corporates on account of following:
At times, it may entail lesser interest cost vis-à-vis Rupee borrowings. The borrower is not required to go to the International market for raising the funds as foreign currency funds are made available in India reducing the cost of raising such funds.
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4. Export Finance 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 the y satisfy the required credit norms. Rupee export credit is available ava ilable for a maximum period of -360- days from the date of first disbursement. The corporates, if required can book forward contracts in respect of future export credit drawls. 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.
5. 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. Opening of Import L/Cs (Sight/ DA) Financing of import by way of Foreign Currency Loans Issuing Guarantees etc. on behalf of importers.
6. Correspondent Correspondent Banking The extensive worldwide network of branches of Bank of Bank of Baroda offers Correspondent Banking services to the Indian Banks as well as banks from other countries. The New York, Brussels and London Branches of the Bank are equipped with latest technology and are having trained and experienced staff for handling the maintenance of Nostro accounts in US$, Euro and GBP respectively. The overseas presence of the Bank is further supported by a large number of correspondent Banks (more than 500) which gives Bank of Baroda access to every corner of the Globe.
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The main services provided are:
Collection of bills both Documentary and Clean. Advising / confirming of L/Cs opened by Indian Banks. Discounting of Bills drawn under L/Cs as well as outside L/Cs. Maintenance of foreign currency accounts (Nostro in US$, Euro, GBP at New York, Brussels and London respectively) for settlement of transactions (Link). Making foreign currency payments/ remittance on behalf of customers of Indian Banks
7. 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 competitive rates.
8. 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 Operations
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E. Treasury Banking 1. Domestic Operations Bank of Baroda has set up dedicated desks at the SITB, headed by experienced professionals, for undertaking various types of treasury activities in different financial markets. Apart from activities pertaining to management of funds and liquidity, the domestic treasury also handles financial instruments like:
Commercial Papers (CP) Certificate of Deposits (CD) Government Securities Treasury Bills (TB) Bonds and Debentures Equities and various other derivatives.
The products and services offered by SITB cater to the inter-bank market as well as to the corporate customers of the bank. The Bank is an active participant both in the inter-bank market and the corporates for all the products.
2. Forex Operations The modern state-of-the-art dealing room at its Specialized Integrated Treasury Branch (SITB) at BKC, Mumbai provides the necessary wherewithal to its 152 designated branches across the length and breadth of the country authorized to handle foreign exchange business of its clientele. The bank has retained its primacy as a leading market maker both in spot and forward markets. The forex dealing desk at the SITB is provided with all modern communication facilities, all its authorized branches via Reuters Automated Dealing System, to provide on-line quotes for foreign exchange transactions. Since most of its overseas branches are strategically situated at places where sizeable Nonresident Indians are residing, the Bank is in a position to deliver its products promptly and efficiently to its NRI customers. The range of products includes remittance facilities and acceptance of deposits in Indian Rupees (NRE / NRO) as well as in designated foreign currencies (FCNR). Resident as well as Returning Indians can avail of benefits like Resident Foreign Currency Accounts (RFC).
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F. Rural Banking Various services offered under rural banking are as follows:
Baroda General Credit Card Scheme (BGCC) Baroda Kisan Credit Card (BKCC) Agricultural Implements Tractors and Heavy Agricultural Machinery Financing Second Hand Tractors Cultivation of Crops Farm Produce Marketing Loan / Financing against warehouse receipt Irrigation Potential Baroda Kisan Tatkal Loan Scheme Dealers of Agriculture Inputs Financing Agencies Providing Custom Services To Farmers Providing Employment To Unemployed Technicians Through Agro Service Centers Agriclinics and Agribusiness Centers by Agriculture Graduates Financing Construction of Farm Building and Structures Construction / Expansion / Modernization / Renovation of o f rural godown Development of Horticulture Land Development Scheme for Loan Against Gold Ornaments / Jewellery J ewellery Financing Scheduled Caste/Scheduled Tribes Scheme for purchase of Agricultural land Scheme For Construction Of Sanitation Facilities In Rural Areas
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Research Methodology
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7.1
Objectives of Study
Banking and finance can be called as the nerves of any economic system as they accelerate the process of economic development through canalization of adequate finance. It is hard to anticipate development of efficient banking services in the country. No doubt financial institutions play so important in economic development but at the sometime economic development determines the growth and development dev elopment of banking institutions. Main objective of the study is to “Critical appraisal of product & services offered by Bank of Baroda.” Some of the major ma jor objectives of the study include the determination d etermination of the following:
Consumer awareness about the products and services provided by the Bank of Baroda. Consumer preference about various products and services. s ervices. Customer‟s perception towards public sector banking and their expectations from public banks. Customer satisfaction with the service provided by the bank. To identify the major attributes of customer satisfaction. To check out staff co-operation towards customers.
7.2 Type of Research Research is one of the most important parts of any study and pertains to the collection of information and knowledge. Marketing research is defined as the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. The research process depends upon developing the most efficient plan for gathering the needed information. Designing a research plan calls for decisions on the data sources, research approaches, research instruments, sampling plan, and contact methods. My project has been developed on has basis of both exploratory and descriptive research. The research is descriptive as the study has been completed based on the data collected from the internet and secondary sources like news, magazines, database BOB, reports etc. It is also analytical in nature as the data collected from questionnaire is analyzed and necessary findings and conclusion is derived based on the data from collected from questionnaire.
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Data Source For this project both primary and secondary data d ata were valuable sources of information.
Primary data Primary data are data freshly gathered for a specific purpose. For my project work, the study has been done using an exploratory research process and a structured questionnaire was developed for this purpose. For the collection of primary data this was the only method used. The filled up information was later analyzed to obtain the required interpretation and the findings. The reason I used this method is because a need was felt for the free influx of information about the products.
Secondary data Secondary data provides a starting point for any research and offers valuable sources of already existing information. Secondary data are the easiest to gather and the cost of collecting this data is also very low. For my project work, study of the banking industry, Bank of Baroda was done using secondary data sources. This secondary information has been sourced from the internet and from business related magazines and newspapers.
7.3 Sampling Plan
Sample size I chose a sample size of 100 respondents consisting of based on convenient sampling. All respondents were the customers of Bank of Baroda. The method was simple random sampling.
Sampling Units For the purpose of research, customers of Bank of Baroda, city light branch were surveyed.
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Sampling Technique Used Since the information required was not of a very technical nature and also looking at the scope of the project and the extent of the target segment, the sampling technique employed was Convenience Sampling. I administered the questionnaires.
Research Instrument Structured Questionnaire method was used to carry out the survey. Questionnaire was framed and design in such a manner that it could be filled up within 5 minutes by the person thus saving time of interviewee. Questions ranged from getting information about loan, different account, cards, use of bank overdraft etc.
Contact Method: Personal Interview.
7.4 Scope of Study Bank of Baroda is one of the most famous banks in India. The various products and services offered by it include:
PRODUCT
Deposits (Saving account and current account) Loans Card
SERVICES
Mobile Banking Internet Banking Payment Other Services
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The deposit mix of an organization especially the saving accounts are the backbone of every bank as an ordinary man is most inclined to invest in it due to its convenience and easy availability. This project deals with the various customer concerns regarding these and tries to suggest appropriate suggesting based on conclusions. I hope that this report would be able to suggest some measures and draw attention of bank ban k towards the area of improvement. The study would try to throw some insights into the existing products and services provided by the bank, perceptions and the actual service quality of the bank. The results of the study would be able to recognize reco gnize the lacuna in the system and thus provide key areas where improvement is required for better performance and success ratio. In the days of intense competition, superior product and service delivery d elivery is the only differentiator left before the banks to attract, retain and partner with the customers. Superior service quality enables a firm to differentiate itself from its competition, gain a sustainable competitive advantage, and enhance efficiency.
7.5 Limitations of Study
The study is only for the Bank of Baroda confined to a particular location and a very small sample of respondents. Hence the findings cannot be treated as representative of the entire banking industry.
In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.
Respondents may give biased answers for the required data. Some of the respondents did not like to respond.
The conclusion arrived at are based on a very less experience of o f researcher in this field.
In our study we have included includ ed 100 customers of bank because bec ause of time limit.
The study can also not be generalized for public and private sector banks of the country.
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Data Analysis and Interpretation
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Age group of customers
Age of Customers 0- 2 5
25 -3 5
3 5 -45
11%
45-55
55+
18%
16% 26% 29%
After looking this bar graph, it can be said the customers of age group 25-45 are the main customer of the banks as they occupied almost 55% of this graph. The bank has a huge potential in terms of the untapped market – Young and old age group people. High pay packages to today‟s employed youth and large saving with the old age people (especially in urban areas) has made them attractive potential customers.
Occupation of customers
Occupation
23%
21%
Professional Business
10%
Students 46%
Other
We can see that about 50% of customers are business class people. Service Se rvice class people comprise of only 20%. This may be possible due to Surat being a city where more of business business class people reside as compare to service class. 53 | P a g e
1. Which income group does you belong to?
Income Group > 500000
23
300000-500000
21
100000-300000
22
50000-100000
16
< 50000
18
Income does not make any difference as far as opening the account in the Bank of Baroda is concerned, as the bar diagram is vividly revealing that more or less people of every segment of income group have opened and are opening the account. So it can be said that the target group of the Bank of Baroda, specially for saving account are of every segment of income group since its is devoted to render best services to its costumer.
2. What are the features/attributes you expect while opening a bank account?
Features/Attributes 50 40 30
41
20 10
8
18
12
21
0 Quick Services
Variety of Less products formalities of documents
Working hours
Proper information
When a customer visits any bank, the first and foremost thing he expects is the quickness of service and the promptness in entertaining by the bank employee. Second thing customer wishes to have is proper information regarding his queries. Also factor like less formalities of document is really significant while opening an account. Varieties of product do not make a big impact on customer behavior for opening an account in any bank if its services are efficient. But on the other hand bank can‟t ignore working hours. As in this bar customer has erred it. For these services like bank preference should be given to make a prompt and customer friendly service channel. 54 | P a g e
3. What type of account do you have with Bank of Baroda?
Type of Account Current deposit account
7% 12%
25%
Saving deposit account Fixed deposit account Others
56%
Saving account is the leading and attractive product for the Bank of Baroda as it occupies a major chunk in this chart. It is clearly implying that this product has the ability to satisfy the customers. On the second and third positions, current accounts and fixed deposits has also been helpful to increase the customer base but still their performances needs to be improved. One thing in this chart which is significant is the business of the bank is relying on only few leading products, reason for this could be, neither has it limited range of products nor rest of the product does not have much ability to penetrate in the stiff market of banking of Surat. That is giving an alarming message to the management of the bank to analyze the situation very minutely and must ascertain where things are going wrong and for that what short of necessary step could be taken. Providing better services in comparison with the competitors is a must for excelling in industry.
4. Who influenced you to open an account with Bank of Baroda? 60 50
52
40 30 20
23
10
11
14
0 bank em employees
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prospectus
advertisement
friend /r /relative
As it is said, a satisfied customer is the best medium for advertisement since in this bar friends and relatives have play a key role in opening the accounts for others, which implies that bank real customer are satisfied enough with the facilities available on the products and the services enjoyed by them. An advertisement and bank employees more or less has been good performer in their respective domain. It reveals advertisement of different medium has been a key factor in generating the awareness about banks product as well as facilities that are made to available on then in the peoples mind.
5. How would you rate the account features/services features/services of Bank of Baroda?
Rating 3% 9%
excellent 34%
25%
very good good satisfactory
29%
poor
As we can see in the above chart that around 65% of its customers have rated features/attributes of Bank of Baroda‟s account as excellent or very good, we can say that customers are satisfied. Reason for this could be different type of facility associated with products, which are reading true value to the customer and marketing people are also very much devoted to give the best from this part. Efforts must be given to know why they are people who are still saying average and poor about accounts and what are the factors that are going wrong with that segment of people.
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6. Have you ever taken a bank loan?
yes
48%
52%
no
We can see from the chart the almost 48% of the BOB customers have taken loan from the Bank. This is a big number; almost every second customer has taken loan from the Bank. This is very impressive rate of loan given by the Bank. It is assumed that loan sanctioned in the rate of 45% to 55% is a good as it should be. As stated above the loans given by the Bank are mainly because of attractive loan schemes offered by the Bank. Because of this attractive loan scheme facility it has been able to attract more loans than other Banks. Another reason for such high BOB success of loan scheme is very few formalities to carry out during the loan. The processing time taken by Bank is much lower than the other Banks. The sample interviewed told that the time taken for granting of loan scheme is almost half than taken by other Banks. One more reason is extensive advertising taken up by Bank of Baroda, resulting in increasing in bank of Baroda‟s brand name.
7. If yes, what type of bank loan have you availed?
Type of Loan 25 20
22
15 10
13
5 5
7
1
0 housing loan auto loan
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personal loan
traders lo loan
other
From the sample size 48% of people are using the BOB loan product. From the 48 people, 45% of people took home loan from Bank of Baroda. 27% of people took auto loan, 15% took traders loan and10% of people took personal loan. From this we can say that, housing loan is most common among customers of Bank of Baroda. Customers also prefer auto loan as compare to other loan of Bank of Baroda.
8. How would you prefer to pay back the loan?
16% Monthly Quarterly 25%
59%
Yearly
From the graph we can see that customers mostly like to pay back the loans as monthly installment. As we see that 60% of customers like to pay loan as monthly base. The main reason for such high payback of monthly installment schemes in all customers is because they can instruct the Bank to debit their account at every month so that they don‟t feel the pressure of loans and interest. So, monthly repayments can decrease the loan and interest liabilities easily.
9. Do you use internet/mobile internet/mobile banking facility provided by Bank of Baroda?
Internet Banking
31% yes no 69%
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From the chart, we can see that around 70% of customers are using internet/mobile banking which is a good number as compare to other banks. Reason for this can be that today almost everyone has access to either mobile or computer, thus increasing internet/mobile banking. Also, this helps in saving time and energy of customers as they don‟t have to go to bank. Also, bank should try to increase the level of internet banking users by making it more customers friendly.
10.Do 10.Do you have a fixed deposit or any other forms of investments with Bank of Baroda?
46%
yes 54%
no
Around 55% of the customers have investments with the bank either as fixed deposits or other investments offered by the bank. Bank should advertise more about their investment schemes to attract more investments.
11.Have 11. Have you ever used personal bank overdraft?
Personal Bank O/D 11% Yes no 89%
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Only about 10% of customers have used personal overdraft facility given by the bank. This is a good sign as most of customers withdraw within their limit.
12.Do 12. Do you own any BOB Card?
BOB Card
36% Yes no 64%
From the chart we can see that around 65% of customers use BOB Card. Bank should try to increase the sale of cards to increase their revenue. To increase their sales, they should make cards more customer friendly.
13.If 13. If yes, which of the following BOB Cards do you own?
Other
11
International debit card
32
BOB silver card
8
BOB gold card BOB exclusive women card
9 4
From the 64 people using BOB Cards, 50% of people use international debit card. Around 25% of people use BOB gold and silver card. 18% of customers use other forms of card. From this we can say that, international debit card is most common among customers of Bank of Baroda because of facility available with it as well as ease of use. 60 | P a g e
14.How 14.How long did you have to wait for getting the bank services?
Waiting Time 0-5 minutes
12% 39%
5-10 minutes More than 10 minutes
49%
As this pie chart is showing, around 90% people wait in queue for 0-10 minutes. It is a good sign for company as it shows efficiency of employees but bank should try to further reduce waiting time.
15.Do 15. Do you think there are sufficient numbers of counters at the bank?
38% Yes 62%
No
As shown in the chart, we can see that only 62% of customers believe that there are sufficient counters available at the bank. Bank should increase the number of counters so as to increase their productivity.
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16.Do 16. Do employees of Bank of Baroda understand your specific needs?
9%
Yes No
91%
As we can see from the chart, 91% of customers said that employees of Bank of Baroda are customer friendly and understand their specific needs. They should try to bring this level to 100% so as to increase customer satisfaction level.
17.In 17. In which of these areas do you think Bank of Baroda needs improvement?
Areas of Improvement 40 35 35
30 25 20 15 10 5 0
21
18
17
9 Product
Relationship Management
Services
Technology
Updates
35% customers feel that bank needs to improve their services. . Second thing customer wishes to improve is technology. Bank needs to be fast enough to install new technology. Also factor like relationship management and updates is really significant to the customers. Customers feel that a good relationship manager and timely updates helps in convenient banking. Very few customers feel that there is need for improvement in products of bank. 62 | P a g e
18.In 18. In comparison with other banks, how would you rate Bank of Baroda‟s product and services?
Comparision with Other Banks Can't Say
Poor
Average
1
7
17
Good
Excellent
44
31
Rating of any bank depends on its overall performance in the eye of the people. This graph is vividly showing that around 75% of customers rate Bank of Baroda good as compare to other banks. The performance of Bank of Baroda has been good in this city with strong competition from major public sector bank like SBI and other private banks. Reason for this could be, it has occupied a different position in the people‟s mind with its customer friendly products and to serve them with an efficient and prompt banking ban king system.
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Facts and Findings
It was found from the study that bank believes in quality service rather than quantity of service.
Bank of Baroda is having a distribution network of more than 4500 branches. This is the main strength of the Bank of Baroda.
Bank of Baroda has a strong brand image in the market built over the time & a huge stockpile of the customers under its arms.
The bank and its customers have a long term relationship. Bank of Baroda has the tendency to retain its customers at any cost. They believe that the old customer is more profitable instead of a new one that‟s why they try to maintain good and long term relations to their
customers.
The perception of the majority of the customer regarding the bank is good because majority of the customers are satisfied with the bank and they also recommend the products of the bank.
The reason for high satisfaction rate was that on the standing instructions of the customers, bank could pay bills such as telephone bills, light bills etc. with the required minimum minimu m or low cost.
According to the customer perception, Bank of Baroda is highly responsive. Customers are assured while transacting with the bank.
Majority of the customers are aware of services and extra services offered by Bank of Baroda. But they are not aware about all the services.
The officials employed are very much enthusiastic about their job.
The officials try to make best relation with the customers.
The registers and files are maintained on a daily basis and in a well organized manner.
The marketing strategy of the bank is very attractive and it tries to attract customers with innovative offers.
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My Learning Working with one of the leading public sector bank of India was a great learning experience for me. During my summer internship with Bank of Baroda I learned how the banking sector works. Apart from working on my project I experienced day to day operations of a City Light Branch. I was used to sit at the customer service desk and help the customer service representatives of the branch. Handling customers and solving their problems was a great learning experience for me. I helped the customers in filling “Know Your Customer (KYC)” forms and account opening forms. I also learned about other transactions like NEFT, RTGS, Clearing, Transfer, issue of Demand Draft and Bankers Cheque, etc. et c. Other learnings from my project are:
Learn to work in the various divisions of the bank.
Got insight about various financial transactions and banking te rminology.
Develop skills required to interact with senior management and staff in a professional manner.
Learn to work with bank customers and explain the account options available at the bank.
Gain an understanding of the procedures used by the firm to evaluate its loan applicants.
Learn the process of documenting work performed on loan applications and communicating effectively with supervisors and other company personnel .
Learn the regulations related to lending policies of the firm.
Gain insight into customer service focus of the firm.
Gain insight into the working environment and understanding the culture of the bank.
Develop organizational and time management skills to complete the project in a timely manner.
Got familiar with various working job profile on which the officers of BOB work upon.
While concluding my project, I would like to say this internship with Bank of Baroda provided me practical knowledge of every field of management being it finance or marketing or human resource or operations.
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Conclusion In the days of intense competition, superior product and service is the only differentiator left before the banks to attract, retain and partner with the customers. Superior service quality enables a firm to differentiate itself from its competition, gain a sustainable competitive advantage, and enhance efficiency. Thus, improving service quality leads to the customer satisfaction and, ultimately, to customer loyalty. Bank of Baroda is doing a terrific job in banking sector handling better human resource, adopting new technologies, bringing new concepts and maintaining very high standards in services provided to the customers. They are even giving a run for the money to the foreign bank that everyone feels are the benchmark for measuring banking standards. Based on the study conducted it can be concluded that professionalism, technology and updates are the critical dimensions of service quality of Bank of Baroda and they are directly related to overall service quality. The factors that may delight customers tend to be concerned more with the intangible nature of the service, commitment, attentiveness, friendliness, care, and courtesy. Also, the international scope of E-banking provides new growth perspectives and Internet business is a catalyst for new technologies and new business processes. To sum up, conclusion of the study can be drawn as follows:
The study mainly was on the customer orientation that how they think, what they want from their banks and how they take decision going to any bank.
In this study I found that the bond of Bank of Baroda with its customers is very strong, because Bank of Baroda mainly focuses on retaining their customers.
This study finds that however Bank of Baroda is not the leading public sector bank but its vast range of products and availability of options make it one of the better banks in India.
The bank should focus on the semi urban and rural market because these markets are very good opportunity for someone like Bank of Baroda which is in growing fast. Without expanding in these markets Bank of Baroda cannot be a leading bank so they should focus on this market.
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The bank should focus on mass banking in order to increase their market share. They should launch such products which would be within the reach of the lower middle class
The bank should pay more attention on giving updates and should increase the level of service providing because the competitors of Bank of Baroda are better in this area.
The bank should try to increase the use of technology like mobile and net banking among its customers.
Bank has to maintain its working environment as result of which customers not even hesitate to enter the bank.
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Recommendations and Suggestions
The bank has a wide customer base, so the bank should concentrate on this to retain its customers. The majority of customers are satisfied. But the bank should target on the rest of the customers who are not satisfied. The customers are aware about the bank‟s services but the Bank should should try to create more awareness among people. Bank of Baroda should lay more stress on advertisements, both in print as well as in other media m edia for this purpose. Number of formalities should reduce, as customer feels irritated with lots of formalities and it will save the time of customer and Bank also. It is the duty of the bank to disclose all the material facts regarding products, like interest charged, repayment period, other types of charges, etc. The bank should enhance their services according to the needs of the customer. Mostly business class persons prefer the Bank of Baroda in comparison of professionals and students and other class persons thus it needs to promote its product and services that are offered mainly for the service class people and students. Because these class are major users of the banking services. Customers of the bank want to know their resources are safe and within trustworthy institutions. A way to ensure this peace of mind would be to take steps to ensure bank employees are well trained, so each bank associate is able to offer complete and comprehensive information at all times. Consistent policies combined with a knowledgeable staff will foster a high degree of institutional cohesion and reliability. Learning to understand customer‟s needs will allow bank associates to offer enhanced services, perhaps lowering customers banking costs and increasing their investment potential. This could also open up the possibility of increased profits for banks. Staff should be encouraged to present relevant options to banking customers in a manner that does not resemble salesmanship so much as a desire to serve. Keeping the bank with up-to-date technologically is an important factor. Modern equipments, new improved technology should be replaced with the old ones. If the staff inside is pleasant and well-informed, in an aesthetically pleasing environment, then customer satisfaction will be high. Thus, the banking industries must continuously measure and improve their services in order to gain customers loyalty.
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Bibliography Websites
www.bankofbaroda.com www.wikipedia.org www.moneycontrol.com www.nseindia.com www.indianbusiness.nic.in
Magazine
BUSINESS INDIA BUSINESS TODAY
Newspaper
DNA Economic times Business world Hindustan times
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Annexure Questionnaire
Name: __________________________ ________________________ __ Age: ___________________ Educational qualification: _____________________ Occupation: Professional Business Students Any other _____________________ 1. Which income group do you belong to?
Less than 50,000 p.a. 50,000 to 1, 00,000 p.a. 1, 00,000 to 3, 00,000 p.a. 3, 00,000 to 5, 00,000 p.a. More than 5, 00, 000 p.a.
2. What are the features/attributes you expect while opening a bank account?
Quick services Variety of products Less formalities of documents Working hours Proper information
3. What type of account do you have with Bank of Baroda?
Current account Saving deposit account Fixed account Any other ____________________
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4. Who influenced you to open an account with Bank of Baroda?
Bank employees Prospectus Advertisement Friend/relative
5. How would you rate the account features/services of Bank of Baroda?
Excellent Very good Good Satisfactory Poor
6. Have you ever taken a bank loan?
Yes No
7. If yes, what type of bank loan have you availed?
Housing loan Auto loan Personal loan Traders loan Any other _______________
8. How would you prefer to pay back the loan?
Monthly installment Quarterly installment Yearly installment
9. Do you use internet/mobile banking facility provided by Bank of Baroda?
Yes No
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10. Do you have a fixed deposit or any other forms of investments with Bank of Baroda?
Yes No
11. Have you ever used personal bank overdraft?
Yes No
12. Do you own any BOB Card?
Yes No
13. If yes, which of the following BOB Cards do you own? BOB exclusive women card
BOB gold card BOB silver card International debit card Any other ___________________
14. How long did you have to wait for getting the bank services?
0-5 minutes 5-10 minutes More than 10 minutes
15. Do you think there are sufficient numbers of counters at the bank?
Yes No
16. Do employees of Bank of Baroda understand your specific needs?
Yes No
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17. In which of these areas do you think Bank of Baroda needs improvement?
Products RM Services Technology Updates
18. In comparison with other banks, how would you rate Bank of Baroda‟s product and services?
Excellent Good Average Poor Can‟t say
THANK YOU
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