bank of baroda

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ACKNOWLEDGEMENT We have sincerely done our project allotted to us. With a deep sense of gratitude we wish to express our sincere thanks to________________ for his help. We would also like to thank our parents, who taught us the value of hard work and would also like to thanks our friends for their support and cooperation finally we would like to thank the direct and indirect support who helped me in completing the project. ____________________ Signature of student


DECLARATION We roll no .03, 30, 34, 39 students of S.Y. BMS (semester III) of Smt. Kamala Mehta College of commerce and Management Here by submit our project report on We also declare that this project which has been the Partial fulfillment of the requirement for the degree of “BMS” of the Mumbai University has been the result of my own efforts.


INTRODUCTION TO BANK A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the zaibatsu. In France, banc assurance is prevalent, as most banks offer insurance services (and now real estate services) to their clients. The level of government regulation of the banking industry varies widely, with countries such as Iceland, the United Kingdom and the United States having relatively light regulation of the banking sector, and countries such as China having relatively heavier regulation (including stricter regulations regarding the level of reserves).


BANKING REGULATIONS ACT 1949 The Banking Regulation Act was passed as the Banking Companies Act 1949 and came into force wef 16.3.49. Subsequently it was changed to Banking Regulations Act 1949 wef 01.03.66. Summary of some important sections is provided hereunder. The section no. is given at the end of each item. For details, kindly refer the bare Act. Banking means accepting for the purpose of lending or investment of deposits of money from public repayable on demand or otherwise and withdrawable by cheque, drafts order or otherwise (5 (i) (b)). Banking company means any company which transacts the business of banking (5(i)(c) Transact banking business in India (5 (i) (e). Demand liabilities are the liabilities which must be met on demand and time liabilities means liabilities which are not demand liabilities (5(i)(f) Secured loan or advances means a loan or advance made on the security of asset the market value of which is not at any time less than the amount of such loan or advances and unsecured loan or advances means a loan or advance not secured (5(i)(h).

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Defines business a banking company may be engaged in like borrowing, lockers, letter of credit, traveller cheques, mortgages etc (6(1). States that no company shall engage in any form of business other than those referred in Section 6(1) (6(2). For banking companies carrying on banking business in India to use at least one word bank, banking, banking company in its name (7). Restrictions on business of certain kinds such as trading of goods etc. (8) Prohibits banks from holding any immovable property howsoever acquired except as acquired for its own use for a period exceeding 7 years from acquisition of the property. RBI may extend this period by five years (9) Prohibitions on employments like Chairman, Directors etc (10) Paid up capital, reserves and rules relating to these (11 & 12) Banks not to pay any commission, brokerage, discount etc. more than 2.5% of paid up value of one share (13)

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Return of unclaimed deposits (10 years and above) (26) Every bank has to publish its balance sheet as on March 31st (29). Balance sheet is to be got audited from qualified auditors (30 (i)) Publish balance sheet and auditors report within 3 months from the end of period to which they refer. RBI may extend the period by further three month (31) Prevents banks from producing any confidential information to any authority under Indl Disputes Act. (34A) RBI authorised to undertake inspection of banks (35). Amendment carried in the Act during 1983 empowers Central Govt to frame rules specifying the period for which a bank shall preserve its books (45-y), nomination facilities (45ZA to ZF) and return a paid instrument to a customer by keeping a true copy (45Z). Certain returns are also required to be sent to RBI by banks such as monthly return of liquid assets and liabilities (24-3), quarterly return of assets and liabilities in India (25), return of unclaimed deposits i.e. 10 years and above (26) and monthly return of assets and liabilities (27-1).

Instruments Of Banking : 

Instruments Of Banking The principal instruments of banking are:- (1) money and currency (2) checks (3) bills of exchange or drafts (4) acceptances (5) promissory notes A "check" may be defined as a written order on a bank or banker for the payment of money. A "bill of exchange" or "draft" may be defined as an order drawn by one party, called the "drawer," on another party, called the "drawee," for the payment of money to a third party, called the "payee," the amount to be charged to the drawer. A bill of exchange may be drawn payable at sight or at some specified time subsequent to sight or demand. Unless the drawee wishes to pay a time draft or bill when presented before it is due, he writes across the face of the paper the word "accepted," with his signature and the date. This means that the drawee assents to the terms of the bill or draft and binds himself to honor it at maturity. It then becomes known as an "acceptance." A "promissory note" is a promise made in writing by one party, called the "maker," to pay a sum of money to another party, called the "payee," or to his order.

Bank of Baroda : 

Bank of Baroda (BSE: 532134) (BOB) is the third largest Public Sector bank in India, after State Bank of India and Punjab National Bank. BOB has total assets in excess of Rs. 2.27 lakh crores, or Rs. 2,274 bn., a network of over 3000 branches and offices, and about 1100+ ATMs. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, credit cards and asset management. Maharajah of Baroda Sir Sayajirao Gaekwad III founded the bank on July 20, 1908 in the princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969, by the Government of India.

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International Presence Bank of Baroda Building Dubai

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In its international expansion Bank of Baroda followed the Indian diaspora, and especially that of the Gujaratis. It has significant international presence with a network of 72 offices in 25 countries, six subsidiaries, and four representative offices. Among Bank of Baroda's 42 overseas branches are ones in the world’s major financial centers i.e. New York, London, Dubai, Hong Kong (which it has upgraded recently), Brussels and Singapore, as well as a number in other countries. The bank is engaged in retail banking via 17 branches of subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. Bank of Baroda also has a joint-venture bank in Zambia with nine branches. Bank of Baroda maintains representative offices in Malaysia, China, Thailand, and Australia. It plans to upgrade its offices in China and Malaysia shortly to a branch and joint-venture, respectively. Bank of Baroda has received permission or in principle approval from host country regulators to open new offices in Trinidad and Tobago and Ghana, where it is seeking to establish joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South Africa, Kuwait, Mozambique, and Qatar and is establishing offices in Canada, New Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing operations in the United Kingdom, the United Arab Emirates, and Botswana.

History : 

History 1908-1958 1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB). 1910: BOB established its first branch in Ahmedabad. 1953: BOB established a branch in Mombassa and another in Kampala. 1954: BOB opened a branch in Nairobi. 1956: BOB opened a branch in Dar-e-Salaam. 1957: BOB established a branch in London. 1959: BOB acquired Hind Bank. 1960s 1961: BOB merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra. BOB also opened a branch in Fiji. 1962: BOB opened a branch in Mauritius. 1963: BOB acquired Surat Banking Corporation in Surat, Gujarat. 1964: BOB acquired two banks, Umbergaon People’s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state. .

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BOB, Union Bank of India and Indian Bank established IUB International Finance, a licensed deposit taker, in Hong Kong. Each of the three banks took an equal share. 1985: BOB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established Indo-Zambia Bank (Lusaka). BOB also opened an Offshore Banking Unit (OBU) in Bahrain. 1988: BOB acquired Traders Bank, which had a branch network in Delhi. 1990s 1990: BOB opened an OBU in Mauritius, but closed its representative office in Sydney. 1991: BOB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&S’s branch had been established before 1970 and Union Bank’s after 1980. The Reserve Bank of India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and subsequent losses. 1992 BOB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange. 1993: BOB closed its OBU in Bahrain. 1996: BOB Bank entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, owning 66% of the bank's equity. 1997: BOB opened a branch in Durban. 1998: BOB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a response to regulatory changes following Hong Kong’s reversion to the People’s Republic of China. The now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license bank. BOB also acquired Punjab Cooperative Bank in a rescue. 1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. In Guyana, BOB incorporated its branch as a subsidiary, Bank of Baroda Guyana. BOB added a branch in Mauritius, but closed its Harrow Branch in London.

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1964: BOB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistan war. It is unclear when BOB had opened the branch. 1965: BOB opened a branch in Guyana. 1967: The Tanzanian government nationalized BOB’s three branches there and transferred their operations to the Tanzanian government-owned National Banking Corporation. 1969: The Government of India nationalized 14 top banks, including BOB. BOB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest. 1970s and 1980s 1972: BOB acquired Bank of India’s operations in Uganda. 1974: BOB opened a branch each in Dubai and Abu Dhabi. 1975: BOB acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand State. 1976: BOB opened a branch in Oman and another in Brussels. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewelry having business in Antwerp, a major center for diamond cutting. 1978: BOB opened branch in New York and another in the Seychelles. 1979: BOB opened a branch in Nassau, the Bahamas. 1980: BOB opened a branch in Bahrain and a representative office in Sydney, Australia.

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2000s 2000: BOB established Bank of Baroda (Botswana). 2002: BOB acquired Benares State Bank in Benares at the Reserve Bank of India’s request. 2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE). 2003: BOB opened an OBU in Mumbai. 2004: BOB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing a subsidiary in Dar-e-Salaam. BOB also opened a representative office each in Kuala Lumpur, Malaysia, and Guangdong, PRC. 2005: The Reserve Bank of India (RBI), has approved a joint venture between BOB, Bank of Maharashtra (BOM), and Oriental Bank of Commerce (OBC) to set up a bank in Malaysia. The new bank will reside in Kuala Lumpur, which has a large population of Indians. The initial capital required will be US$78 million; BOB will invest 40%, and the other two banks will invest 30% each. The JV is awaiting approval from the Malaysian Central Bank. Bank has built and commissioned its own State-of-the-Art Global Data Centre (DC) in Mumbai for running its centralized banking solution (CBS) and other applications in 1900+ branches across India and 20 other counties where the Bank is operating. BOB also opened a representative office in Thailand. 2006: BOB established an Offshore Banking Unit (OBU) in Singapore. 2007: In its centenary year, Bob's total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people. 2008: BOB opened a branch in Guangzhou, China (02/08/2008). 2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand (2009/09/01)

Bank of Baroda Financials Sales Rs. 17,754 crores Profits Rs. 2,227 crores, Assets Rs. 2,27,406 crores : 

Bank of Baroda Financials Sales Rs. 17,754 crores Profits Rs. 2,227 crores, Assets Rs. 2,27,406 crores Bank of Baroda Branches No. of branches in India 2700 No. of computerized branches 2176 No. of branches connected with leased lines 450 No. of branches operating e-payment product 340 in 53 centre. No. of branches serving BOB CASHREACH 58 in 53 centre for corporate stele-Banking, PC-Banking and Any Branch Banking services 291 in following 7 cities Chennai Bangalore Hyderabad Pune Mumbai Ahmedabad Delhi SMS and WAP based mobile banking services 423 branch sinter bank electronic transfer funds (ETF)206 branches

Note : Bank of Baroda has joined National Financial Switch (NFS) of Institute of Development and Research in Banking Technology (IDRBT) to enable customers to use ATMs of other Banks, connected to NFS, at a lower cost. It also allows Master Card and VISA card holders to use its ATMs. ATM / Debit Card services of Bank of Baroda No. of branches with ATMs250 No. of networked ATMs219No. of VISA ATMs in India for use15,000 No. of VISA ATMs around the world for use8,50,000No. of POS in India for card acceptance1,00,000No. of POS terminals globally13 million No. of Debit Cards customers Approximately 3 lakhs

BOB CASH SEARCH A product by Bank of Baroda to enable electronic transfers/ cash remittances at designated branch through specialized network. The facility makes available funds or credits in the customers account on the same day. : 

BOB CASH SEARCH A product by Bank of Baroda to enable electronic transfers/ cash remittances at designated branch through specialized network. The facility makes available funds or credits in the customers account on the same day. Bank of Baroda's Equity Bank of Baroda returned the Govt. Capital of Rs 381 crores in December 1996 and became one of the early birds to tap the equity market. Today its equity capital is Rs 294 crores of which one third is held by non-Govt. Investors like employees, retail investors, bank & financial institutions, the FIIs and OCBs, Mutual Funds and some insurance companies.

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Bank of Baroda Deposit ServicesBank of Baroda has three deposit schemes. They are as follows: Fixed Deposits Current Deposits Savings Deposits Bank of Baroda LoansBank of Baroda has the following bouquet of loan solutions for its customers diverse requirements. Housing Loan Home Improving Loan Education Loan Car Loan Two Wheeler Loan Consumer Durables Loan Personal Computers Loan Personal Loan Marriage Loan Festival Loan Advance Against Securities Overdraft Against Property Loan to Pensioners Loan to Defense Pensioners Professional Loan Traders Loan Loan Against Rent Receivables

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Bank of Baroda Key ServicesApart from the different types of Loan Solutions, Deposits, Credit and Debit Cards, Bank of Baroda also offers other services to make financial dealings easy and convenient for customers. They are as follows: Remittances (Baroda Money Express) Collection Services ECS (Electronic Clearing Services) Government Business (PPF, DSRGE, Tax Collections and Savings Bonds) Bank of Baroda NRI/OCB services The NRIs/OCBs are granted the following facilities by Bank of Baroda Maintenance of Bank accounts in India Investments in securities/shares of, and deposits with, Indian firms/companies. Investments in immovable properties in India. Bob Credit Card Customer RelationA successful business depends upon long lasting relationship with customers. Bank of Baroda has setup a separate Customer Grievances and Redressed Cell to take care of its customers enquiries, queries and complaints.

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Financial Statement From 2005 to 2009 (Rs crore) Balance sheet

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Profit loss account

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Cash flow