Industrial Profile:

Bank of Baroda Limited provides various banking products and

services to individuals, government departments, and corporate
customers in India and internationally. The company operates
through Treasury, Corporate/Wholesale Banking, Retail Banking,
and Other Banking Operations segments. It offers savings and
current accounts; term, fixed and recurring deposits; and NRI
deposit products. The company also provides loans, such as
home, education, vehicle, gold, mudra, personal, and mortgage
loans, as well as loans against securities and public issues/IPO;
professional, composite, bridge, FCNR, and short and medium-
term corporate loans, as well as loans for micro, small, and
medium enterprises; working capital finance, term finance,
commercial vehicle finance, export finance, advances against
shares, bill finance, lines of credit, loans against rent receivables,
project finance, infrastructure finance, supply chain finance, loans
for the takeover of accounts, foreign currency credit, and non-
fund based services; and debit, prepaid, and credit cards. In
addition, it offers loans and advances, and pensions and
government schemes to customers; life insurance, general
insurance, and health insurance products, as well as mutual funds;
appraisal merchant banking, cash management, remittance,
collection, e-stamping, ECS, hedging, FX retail, correspondent
banking, treasury, investment, lockers, and capital market
services; and ATM, mobile banking, internet banking, cash
recycler, and e-lobby services. Bank of Baroda Limited was
incorporated in 1908 and is headquartered in Vadodara, India.

Company Profile:
Bank of Baroda (BOB or BoB) is an Indian public sector bank
headquartered in Vadodara, Gujarat.it is India's second-largest public
sector bank after State Bank of India, with 132 million customers, a
total business of US$218 billion, and a global presence of 100 overseas
offices. It has international experience of over 52 years, it was
among the first bank to venture overseas by opening a branch in
Mombasa, Kenya in 1953. Based on 2019 data, it is ranked 1145 on the
Forbes Global 2000 list.

The Maharaja of Baroda, Sayajirao Geakwad III founded the Bank of

Baroda (bob) on 20th July 1908 in the princely state of Baroda in
Gujarat. The government of India nationalized the Bank of Baroda
along with 13 other major commercial banks of India on 19th July 1969
and the bank was designed as a profit-making public sector undertaking
(PSU).

A unique representation of a universal symbol. It comprises dual ‘B’

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

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

the single most powerful source of light and energy – its far-reaching
rays dispel darkness to illuminate everything they touch. At Bank of
Baroda, we seek to be the source that will help all our stakeholders
realize their goals. To our customers, we seek to be a one-stop, reliable
partner who will help them address different financial needs. To our
employees, we offer rewarding careers, and to our investors and
business partners, maximum return on their investment. The single-
color, compelling vermillion palette has been carefully chosen, for its
distinctiveness as it stands for hope and energy.

They also recognize that our bank is characterized by diversity. Our

network of branches spans geographical and cultural boundaries and
rural-urban divides. Our customers come from a wide spectrum of
industries and backgrounds. The Baroda Sun is a fitting face for our
brand because it is a universal symbol of dynamism and optimism – it is
 meaningful for our many audiences and easily decoded by all. The
current identity is a result of the amalgamation of e-Dena and e-Vijaya
with the Bank of Baroda. The revised logo consists of two parts: the
identifier and logotype in Hindi and English along with the Vijaya and
Dena Bank units. Together, they are referred to as the Composite Logo.
The new corporate brand identity is a clear, strategically designed,
powerful visual representation that affirms that we

recognize and are prepared for new business paradigms in a globalized

world. All while we stay in touch with our heritage and the enduring
relationships on which our bank is founded.

Promoters
2021, Government of India holds 63.97% of total paid up equity of the Bank
and Public Shareholding is at 36.03%, which is held by Retail Investors,
Employees, Banks and Financial Institutions, FIIs and NRIs, Mutual Funds,
Insurance Companies and Others.

Vision

To be the most respected and preferred mid-size bank, striving to

enhance stakeholders' value with care, concern, and competence.

mission

To Maximize customer satisfaction through well-trained staff and

strive to establish a mutually beneficial and long-term business
relationship.
Quality policy:
To create a performance-driven culture and an exciting workplace for the employees

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

To inculcate a strong and effective sales and service culture across levels in the
organization in order to generate strong stakeholder affiliation.
To create a learning organization for employees’ intellectual growth and creativity; and
to re-skill the workforce to operate in digitally enabled modern core banking
environment.

Product and service profile

Savings Account
Current Account
Vehicle loans
Housing loans
 Debit card and credit card sevices
Education and Industrial loans
Internet banking

Area of Operations:

Bank of Baroda has reached a new milestone in branch banking by launching its 2060th
branch in Hounsabhavi, Haveri, today. The remaining asset centres will be converted
into bank branches, and the bank will have approximately 3000 bank branches by
March 2021.

Bank of Baroda services over all Indian consumers in India through 8546 bank
branches and over 2060 asset centres /outlets, with over 79858 workers.

Infrastructure facility:
Well equipped bank office
Bank branches under cc surveillance
Parking facilities to staff and customers
Locker facilities to their customers
Competitors information:
IDBIBank
HDFC Bank
ICICI Bank
Canara Bank
SBI Bank
Axis Bank
IDFC Bank
GVB Bank

Swot Analysis:
Strength:
 Complete Banking Products Portfolio: Bank of Baroda has a wide range of banking services and financial instruments available for its customers.
 Wide Branch Network: Bank of Baroda, the second-largest bank in India, has a diversified branch network mix that sustains low-cost capital
mobilization. Bank of Baroda has over 9482 branches throughout the country and has also reached rural India with over 1964 branches in rural India.
Bank of Baroda has 13193 ATMs.
 Salary Account of Government Employees: Most of the government employees are having salary account in the Bank of Baroda.
 Strong Capital Position: Bank of Baroda held a strong capital adequacy ratio (CAR) of 13.45 percent as of 31 March 2019. Bank of Baroda has a
business of 218 billion US Dollars.
 Large Customer Base: Bank of Baroda has a customer base of 131 million.
 Merger: Government has merged Bank of Baroda, Vijaya Bank, and Dena Bank. Bank of Baroda is now the third-largest lender in the country.
 Interest Rates: Interest rates are less as compared to private sector banks.
Weakness:

 NPA: The NPA of Bank of Baroda is increasing year by year. In the year 2019, it was 15610 Crores and in the year 2020, it was 21577 Crore rupees.
The bank is not able to decrease this NPA.
 Less Presence in International Markets: Bank of Baroda has business in 27 countries but the bank is primarily focused on its Indian market. BOB’s
must increase their services in international markets to increase its profits.
 Forex Fraud: A number of employees have been caught in Forex Scam over the years. Even the RBI penalized the Bank of Baroda for a forex fraud of
almost 6000 crores. Likewise, there have been other scams concerning bank employees.
 Less Brand Value: Government banks are known to advertise even less and only on the basis of the available budget. As a consequence, the bank has
very poor brand value relative to private banks. In terms of the Government Banks, the Central Bank of India and other subsidiaries of the State Bank, as
well as the Bank of India, has higher brand equity.

Opportunities:
 Bancassurance: Most of the banks are promoting products offered by one or the other insurance companies. Bank of Baroda has entered into a joint
venture with Andhra Banks and the UK-based firm and promoting products of IndiaFirst Life Insurance. This bancassurance model may have long-term
results for the Bank of Baroda.
 UPI / Payment Bank: New banking products like UPI Payment Wallets are also a great opportunity for the bank. Bank can launch its UPI Payment app
like Paytm or PhonePe.
 Development of Loan Market: Due to developing infrastructure Bank of Baroda can provide loans at less interest rates to potential customers.
 Business / Personal Loan: The business and personal loan segment can be a great opportunity for Bank of Baroda.
 Threats:
 High competition: There are many national and international players in Banking Industry. Due to intense competition business of Bank of Baroda is
affected and this can be a major threat to the bank.
 Online Lending: Online Loans offered by various NBFC and Private Banks can be a major threat to the Personal Loan department of Bank of Baroda.
 Private banks:  Private banks are a big rival to government banks because of the facilities offered and because of the strong functionality of private
banks over government banks.
 Payment Wallets: Payment Wallets can also affect the business of Banks. This can be a major threat to Bank of Baroda and other government sector
banks.

CHAPTER-02
THEORETICAL BACKGROUND AND LITERATURE REVIEW

Bank of Baroda is a leading contributor for inclusive financial growth of the society.
Bank has a wide network of 2,930 rural branches and more than 17,800 Business
Correspondents serving across 10085 SSA locations and Bank has opened more
than 5 Crore Basic Savings Bank Deposit accounts. Bank has extensively
campaigned and marketed the social security products such as Pradhan Mantri
Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension
Yojana etc. which are the flagship schemes of Government of India. Our bank has
a market share of 13.29% in terms of PMJDY accounts and 14.40% in terms of
deposit in PMJDY accounts in the banking industry. Bank is also a leader in
providing Financial Literacy and Credit Counselling through 87 FLCC centers and
skill based training to unemployed people through 64 Baroda Swarojgar Vikas
Sansthan (BSVS). All our CSP outlets managed by BC agents are enabled for
providing gamut of financial services to the customers.
Bank has been receiving numerous awards and recognitions in the field of
Financial Inclusion from time to time. Some of the awards received by our bank in
the recent past in the field of Financial Inclusion are as under:

1. Award from ‘Governance Now’ in 4th India Banking Reforms Conclave & BFSI
Awards 2019 on 29th May 2019 at Mumbai.
2. Skoch Award 2019 - Banking Silver for Digital Financial Inclusion on 29th June
2019 at New Delhi.

Bank of Baroda has a dynamic and a vibrant work environment that not just
facilitates the career progression but also provides a platform to its employees to
explore various dimensions of their personality. We believe that the happiest
employees are the most productive

Bank of Baroda hosts various Inter –Zonal Competitions annually in various

categories like Drama, Music & Dance, Carrom, Chess, Badminton, Table Tennis
etc. to encourage the employees to explore their interests and passion beyond the
regular work. The Annual Sports day is celebrated every year on 3rd Saturday of
the November month across various Regions/Zones where all the employees and
their family members are invited to participate in various sports activities/games.
The bank of Baroda’s role of banking sector is evaluated in its whole and includes
categories,including resources, liabilities, values, costs, income, and overall benefit. It is
calculated using various business-related formulas that enable customers to compute in-
depth insights regarding a bank’s potential viability.
For internal clients, role of bank of baroda in banking sector is examine to determine the
banking performance comparison of other banks and also other financial institutions. In
order to determine whether a company is good of their time and attention for outside
clients, role of bank of baroda is examined.

Literature review:
Kaveri (2001)[50] studied the non-performing assets of various banks and suggested
various strategies to reduce the extent of NPAs.

Prashanth k Reddy (2002)[51] in his study focuses on comparative study on Non- Performing
Assets in India in the Global context.

Ramu, N (2009)[52] has made an attempt to analyze the asset quality in selected UCBs in
Tamil Nadu. The researcher also pointed out that, with the tightening of prudential norms, the
banking sector has been consistently conforming to and adopting international prudential
norms and accounting practices.

Meenakshi Rajeev and Mahesh, H.P. (2010)[53] in their study concluded that
accounting norms have been modified substantially and mechanisms are in place for
reduction of bad debts. Bhavani Prasad and Veera D (2011) studied NPAs in Indian
Banking sector and concluded that PSBs accounted for 78% of total NPAs and this is
due to falling revenues from traditional sources.

Jaynal Ud-din Ahmed (2011)[54] in his study concluded that the earning capacity
and profi- tability of banks has been adversely affected by the high level of NPAs and
the reduction of NPAs in banks is posing the biggest challenges in the Indian
economy.

Veerakumar,K. (2012)[55] in his research study concluded that the bank

management may speed up recovery of good loans and bad loans through various
modes to decelerated growth of NPAs from the present level and also to prevent re-
emergence of NPAs over the minimum level.
Sandeep and Parul Mital (2012)[57] analysed the comparative position of non-
performing assets of selected public and private sector banks in India to find their
efficiency through comparative study.

Zahoor Ahmed and Prof. Jagadeeshwaran.M. (2013)[58] in their research study

concluded that NPA is a major problem and hurdle faced by banking industry. And
also assessed the various causes for accounts for becoming NPAs are wilful defaults,
improper processing of loan proposals, poor monitoring and so on.

Ganesan. D. and Santhanakrishnan. R. (2013)[59] have made an attempt to

analyse the sector-wise NPAs, category-wise priority sector NPAs and impact of
spread on Gross and Net NPAs. They also analysed the reasons for an assets
becoming NPA and remedial measures to be taken and concluded that due to various
steps taken by the Government of India, NPAs were reduced to considerable level.

RBI and Govt. of India had appointed various committees and Study Groups from
time to time to study in depth different aspects on Banks Credit, Legal Reform and
Non-Performing Assets. All these subject matters are co-related and interconnected
to this research study and hence it is necessary to know, in brief, about the purpose of
appointment of such Committees, their terms of reference and some of the valuable
recommendations made by them. Non- performing Assets have been plaguing the
Indian financial sector since long but were not in the public domain till early nineties.
By that time, significant amount of loan assets involving uncertainly with respect to
ultimate collection piled up creating concerns with the opinion makers about health
of Indian banking and financial sector.

Mohina satish Kulkarni (1986)[60] The author reviewed the progress made by the
scheduled banks since nationalization in financing agriculture. The study also
emphasized on interstate and regional imbalances. Deals with adoption of multi
agency approach and agricultural credit which will enable disbursement of credit
directly or indirectly to the borrowers and also suggest maximum agricultural credit
is utilized by the rural borrowers. The study mainly deals with agricultural credit and
there was an imbalance between the states and union territories and the percentage of
credit level exceeds rural populations.

Srinivasan (1991)[61] dealt with national level accelerated the flow of credit to the
neglected sector and also brings correlation between state development and relative
human material resource endowment. The researcher has provided certain
recommendations which if practiced by the public sector banks can reduce the level
of NPA.

Chandran Sankarnarayanan(1992)[62] The last two decades have witnessed

unprecedented crises in banking sectors across the world, developed and developing
countries alike. The author deals internal strengths and weaknesses, which matter in
handling NPAs of the Bank, it has also been endeavored to evaluate broadly the
various strategies available for meeting the issue. The study does not aim to work out
purpose-related or area-based strategies for managing NPAs.

Desai Maulesh-(1992)[63] the huge burden of NPA is breaking the back bone of the
banking sector. Credit monitoring and recovery are the methods applied for NPA
management. The research study recommends various issues relating to NPA
exclusively in the Gujarat Zone. Author provides insight into warning signal emitted
before the credit becomes NPA. Aspects relating increase in bills receivable
without changing business propositions affects the profitability. The author has
highlighted in order to avoid NPA the bankers should be careful keeping in mind the
warning signals which can avoid the disastrous situations or alarming contingencies.

Gunasekaran (1995)[65] The author highlighted through his research financing of

agriculture by commercial banks in micro level .His study was restricted to Tanjaur
District in Tamil Nadu. The researcher examined the lending pattern and
disbursement of farm finance and their over dues on farm finance by the commercial
banks. Over all comparison of the commercial banks in farm lending with other
institutional partner namely the crop finance. Deals with areas of farm lending and
their improvements in quantitative & qualitative lending pattern & recovery methods also
brings about scheme lending operations on user which is effectiveness in rural areas.
Kishor Bhoir(1999)[66] deals with the various aspects of NPA in public sector
banks... Study highlighted the main reason which turns the performing advances to
non performing ones. The author recommends remedial measures taken by the public
sector banks and compromise settlement as one of the solutions to the problem faced
by the Public sector banks. The author analyzed internal and external Industrial
sickness. According to the researchers NPA has a multiple effects on the total
working of Indian banking system and the banks looses further opportunity of
investment. The study also emphasized different categories of borrowers.

Pankaj B.Trivedi (2000)[67] brings about the causes and factors responsible for
lower Profitability and impact of inflation and changes in price level. It very clearly
implies that there is correlation between efficiency and profitability.

Kalkoti(2003)[68] The bank faces various difficulties in good performance with

respect to priority sector .Any defect in the performance can bring down the
profitability of the bank. As a result, various banking regulations and quality of assets
and various measures to identify the risk has been introduced and also the efforts are
made to bring about the awareness in the industry.

Veerachamy (2006)[69] the bank faces various difficulties in good performance with
respect to priority sector. The researcher in his study clearly deals with the
performance of primary co-operative agricultural and rural development in Dindigul
District in TamilNadu. The author analyzed and examined through his study the
impact of over dues of the banks. The study revealed the external factor and internal
factor as to the cause of borrower not making the due and account becoming NPA.
Socio economic institutional, psychological and political factors. Default in payment
of credit is correlated with literacy and illetracy of a borrower.
Ananth (2007)[70], The Indian banking and financial system has made commercial
progress in extending its geographical spread and functions reach. The study brings
about the performance of private banks in the post liberalization era and analyzing the
cause of the poor performance and suggesting the measures to improve upon it. The
study highlighted the strength and weakness of only the private sector banks. Emitted
various financial problems and focus on the financial problems and encourages new
technology and new products with the result the profitability and efficiency can be
increased.

Gita.A.Kumta(2007)[71] The study evolves modes for efficient management of funds

with special reference to inflow, planning functions and policy changes. The study
highlights to identify various steps taken by various agencies to guide the District
Central Co-operative in Maharashtra. The author opined that the cooperative banks
are unable to take the advantages of the liberalization measures unless the cooperative
societies Act and Banking Regulation Act give full protection to DCCB.

K.Ramesha (2003)[72] Co-operative banks have made substantial progress in India;

the movement cannot be termed as a vibrant one in regard to cooperative values and
philosophy as enunciated in cooperative principles. While the extension of financial
sector reform programme mainly the prudential standards to cooperative banking on
par with commercial banks. The notion of code of good practices though intuitively
appealing the temptation to prescribe universally valid model codes which do not allow
for differences in institutional development, legislative framework. The paper
identifies several broad areas for the intervention of researchers under three
categories, i.e. prudential standards, professional management and governance and
supervision and regulation against the backdrop of financial sector reforms.
Rajesh Chakrabharti and Gaurav Chawla (2004)[73] Authors suggested
increasingly popular methodology of Data Envelopment Analysis to evaluate the
relative efficiency of Indian Banks in comparison with Foreign Banks. The result of
the study suggests on a value basis, the foreign banks, as a group, have been
considerably more efficient than all other bank groups, followed by the Indian Private
Banks. From the quantitative performance aspect private banks supersedes the other
bank group. The study emitted their views on regulatory mechanism is a cause for
poor performance aspects like poor quality of goods is a cause of NPA and
emphasizing the level of profitability and in performance.

Milind (2007)[78] The objective of the paper is to measure the productive efficiency of banks
in developing country. The measurement of efficiency in this paper is done using Data
Envelopment Analysis.

Namboodiri (2001-2002)[82] identifies 5Cs, and 7Pswhich are simple and basic point a
banker has to apply his mind and be alert about while appraising a credit proposal. And also
adds the phrase as banker an employee should act in good faith and without negligence to
avoid the problem by the bank.

CHAPTER-03
RESEARCH DESIGN