SUMMER TRAINING PROJECT REPORT (KMBN 308)

ON
“FINANCIAL ANALYSIS OF BANKING INDUSTRY
BANK OF BARODA”

For the partial fulfillment of Degree of

Master of Business Administration (MBA) Program

Under the Guidance of: Submitted By:

Ms. Pooja Yadav Avanish Parashar
MBA IInd Year Roll No. 2204310700017
Assistant Professor MBA 3rd Sem.
Department of Management

Submitted To
Prof. (Dr.) Apoorva Mishra
Head of Department
Department of Management

B.N. College of Engineering & Technology , Lucknow (College Code-431)

AFFILIATED TO
DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW
Session-2023-24

i
 DECLARATION

I hereby declare that the following project report titled "“FINANCIAL

ANALYSIS OF BANKING INDUSTRY BANK OF BARODA”" is an

authentic work done by me. This is to declare that all the work indulged in the

completion of this work such as research, data collection, analysis is a profound

and honest work of mine.

Avanish Parashar

Date: Roll No. 2204310700017

Place: MBA 3rd Sem.

ii
 ACKNOWLEDGEMENT

Like most effective endeavors, preparing this project was a collaborative effort.

I owe a great debt to many individuals who helped me in successful completion

of this project.

I would not have completed this journey without the help, guidance and

constant support and co-operation of certain people who acted as guides and

friends along the way. I would like to express my deepest and sincere thanks to

Prof.(Dr.) Apoorva Mishra (HOD, Department of Management), Ms. Pooja

yadav and all faculty members for their invaluable guidance and help. The

project could not have been completed without their support and guidance.

In this connection I would like to express my gratitude to my parents and

friends who were constant source of inspiration during my mini project report.

At last I thank to Almighty for giving me the power to complete this project

successfully.

Avanish Parashar
Roll No. 2204310700017
rd
MBA 3 Sem.

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 EXECUTIVE SUMMARY
This report is a research of the dissertation done at Bank of Baroda The first

few pages of the report talk about an introduction to the financial analysis the

need for specialists in housing loan independently since their incorporation &

then with the profile of financial analysis. Hereafter the report talks about the

Research i.e. trend analysis of organization. Here we talk about the process of

financial analysis followed by principles of trend analysis. In the next few

pages an attempt has been made to clarify the details & descriptions which one

should know the qualities & reasons for benefits provided by Identify costs of

quality.

The last pages constitute of the findings of the Research & the conclusion.

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 TABLE OF CONTENTS

Page No.

1. INTRODUCTION 1-21

2. COMPANY PROFILE 22-54

3. OBJECTIVES OF THE STUDY 55-56

4. RESEARCH METHODOLOGY 57-59

5. LIMITATIONS 60

6. DATA ANALYSIS AND INTERPREATATION 61-71

7. FINDINGS 72-74

8. CONCLUSION 75-77

9. BIBLIOGRAPHY 78-79

10.APPENDIX 80- 83

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INTRODUCTION

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 INTRODUCTION

FINANCIAL ANALYSIS

Financial analysis (also referred to as financial statement analysis or

accounting analysis or Analysis of finance) refers to an assessment of the
viability, stability and profitability of a business, sub-business or project.

It is performed by professionals who prepare reports using ratios that make use
of information taken from financial statements and other reports. These reports
are usually presented to top management as one of their bases in making
business decisions.

Continue or discontinue its main operation or part of its business;

Make or purchase certain materials in the manufacture of its product;
Acquire or rent/lease certain machineries and equipment in the
production of its goods;
Issue stocks or negotiate for a bank loan to increase its working capital;
Make decisions regarding investing or lending capital;
Other decisions that allow management to make an informed selection on
various alternatives in the conduct of its business.

Goals

Financial analysts often assess the following elements of a firm:

1. Profitability - its ability to earn income and sustain growth in both the short-
and long-term. A company's degree of profitability is usually based on
the income statement, which reports on the company's results of operations;

2. Solvency - its ability to pay its obligation to creditors and other third parties
in the long-term;

3. Liquidity - its ability to maintain positive cash flow, while satisfying

immediate obligations;
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Both 2 and 3 are based on the company's balance sheet, which indicates the
financial condition of a business as of a given point in time.

4. Stability - the firm's ability to remain in business in the long run, without
having to sustain significant losses in the conduct of its business. Assessing a
company's stability requires the use of both the income statement and the
balance sheet, as well as other financial and non-financial indicators. etc.

Method

Financial analysts often compare financial ratios (of solvency, profitability,

growth, etc.):

Past Performance - Across historical time periods for the same firm (the
last 5 years for example),
Future Performance - Using historical figures and certain mathematical
and statistical techniques, including present and future values, This
extrapolation method is the main source of errors in financial analysis as
past statistics can be poor predictors of future prospects.
Comparative Performance - Comparison between similar firms.

These ratios are calculated by dividing a (group of) account balance(s), taken
from the balance sheet and / or the income statement, by another, for example :

Net income / equity = return on equity (ROE)

Net income / total assets = return on assets (ROA)
Stock
Assetprice / earningsRatios
Management per share = P/E
gauge howratio
efficiently a company can
Comparing
change financial
assets into sales.ratios is merely one way of conducting financial
analysis. Financial ratios face several theoretical challenges:

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 They say little about the firm's prospects in an absolute sense. Their insights
about relative performance require a reference point from other time periods
or similar firms.

One ratio holds little meaning. As indicators, ratios can be logically

interpreted in at least two ways. One can partially overcome this problem by
combining several related ratios to paint a more comprehensive picture of
the firm's performance.

Seasonal factors may prevent year-end values from being representative. A

ratio's values may be distorted as account balances change from the
beginning to the end of an accounting period. Use average values for such
accounts whenever possible.

Financial ratios are no more objective than the accounting methods

employed. Changes in accounting policies or choices can yield drastically
different ratio values.

Fundamental analysis.

Financial analysts can also use percentage analysis which involves reducing a
series of figures as a percentage of some base amount. For example, a group of
items can be expressed as a percentage of net income. When proportionate
changes in the same figure over a given time period expressed as a percentage is
known as horizontal analysis. Vertical or common-size analysis, reduces all
items on a statement to a “common size” as a percentage of some base value
which assists in comparability with other companies of different sizes. As a
result, all Income Statement items are divided by Sales, and all Balance Sheet
items are divided by Total Assets.

Another method is comparative analysis. This provides a better way to

determine trends. Comparative analysis presents the same information for two
or more time periods and is presented side-by-side to allow for easy analysis.

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WORKING CAPITAL

Working capital, also known as net working capital or NWC, is a financial

metric which represents operating liquidity available to a business. Along with
fixed assets such as plant and equipment, working capital is considered a part of
operating capital. It is calculated as current assets minus current liabilities. If
current assets are less than current liabilities, an entity has a working capital
deficiency, also called a working capital deficit.

Net Working Capital = Current Assets − Current Liabilities

A company can be endowed with assets and profitability but short of liquidity if
its assets cannot readily be converted into cash. Positive working capital is
required to ensure that a firm is able to continue its operations and that it has
sufficient funds to satisfy both maturing short-term debt and upcoming
operational expenses. The management of working capital involves managing
inventories, accounts receivable and payable and cash.

Calculation

Current assets and current liabilities include three accounts which are of
special importance. These accounts represent the areas of the business where
managers have the most direct impact:

accounts receivable (current asset)

inventory (current assets), and
accounts receivable (current asset)

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 FIFO VS. LIFO ACCOUNTING

When a dealer buys goods from inventory, the value of the inventory is reduced
by the cost of goods sold (COGS). This is simple where the COGS has not
varied across those held in stock; but where it has, then an agreed method must
be derived to evaluate it. For commodity items that one cannot track
individually, accountants must choose a method that fits the nature of the sale.
Two popular methods which normally exist are: FIFO and LIFO accounting
(first in - first out, last in - first out). FIFO regards the first unit that arrived in
inventory as the first one sold. LIFO considers the last unit arriving in inventory
as the first one sold. Which method an accountant selects can have a significant
effect on net income and book value and, in turn, on taxation. Using LIFO
accounting for inventory, a company generally reports lower net income and
lower book value, due to the effects of inflation. This generally results in lower
taxation. Due to LIFO's potential to skew inventory value, UK GAAP and IAS
have effectively banned LIFO inventory accounting.

STANDARD COST ACCOUNTING

Standard cost accounting uses ratios called efficiencies that compare the labour
and materials actually used to produce a good with those that the same goods
would have required under "standard" conditions. As long as similar actual and
standard conditions obtain, few problems arise. Unfortunately, standard cost
accounting methods developed about 100 years ago, when labor comprised the
most important cost in manufactured goods. Standard methods continue to
emphasize labor efficiency even though that resource now constitutes a (very)
small part of cost in most cases.

Standard cost accounting can hurt managers, workers, and firms in several
ways. For example, a policy decision to increase inventory can harm a
manufacturing managers' performance evaluation. Increasing inventory requires

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increased production, which means that processes must operate at higher rates.
When (not if) something goes wrong, the process takes longer and uses more
than the standard labor time. The manager appears responsible for the excess,
even though s/he has no control over the production requirement or the
problem.

In adverse economic times, firms use the same efficiencies to downsize,

rightsize, or otherwise reduce their labor force. Workers laid off under those
circumstances have even less control over excess inventory and cost efficiencies
than their managers.

Many financial and cost accountants have agreed for many years on the
desirability of replacing standard cost accounting. They have not, however,
found a successor.

Theory of Constraints cost accounting

Eliyahu M. Goldratt developed the Theory of Constraints in part to address the

cost-accounting problems in what he calls the "cost world". He offers a
substitute, called throughput accounting, that uses throughput (money for goods
sold to customers) in place of output (goods produced that may sell or may
boost inventory) and considers labor as a fixed rather than as a variable cost. He
defines inventory simply as everything the organization owns that it plans to
sell, including buildings, machinery, and many other things in addition to the
categories listed here. Throughput accounting recognizes only one class of
variable costs: the trully variable costs like materials and components that vary
directly with the quantity produced.

Finished goods inventories remain balance-sheet assets, but labor efficiency

ratios no longer evaluate managers and workers. Instead of an incentive to
reduce labor cost, throughput accounting focuses attention on the relationships

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between throughput (revenue or income) on one hand and controllable operating
expenses and changes in inventory on the other. Those relationships direct
attention to the constraints or bottlenecks that prevent the system from
producing more throughput, rather than to people - who have little or no control
over their situations.

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 NATIONAL ACCOUNTS

Inventories also play an important role in national accounts and the analysis of
the business cycle. Some short-term macroeconomic fluctuations are attributed
to the inventory cycle.

Distressed inventory

Also known as distressed or expired stock, distressed inventory is inventory

whose potential to be sold at a normal cost has or will soon pass. In certain
industries it could also mean that the stock is or will soon be impossible to sell.
Examples of distressed inventory include products that have reached its expiry
date, or has reached a date in advance of expiry at which the planned market
will no longer purchase it (e.g. 3 months left to expiry), clothing that is
defective or out of fashion, and old newspapers or magazines. It also includes
computer or consumer-electronic equipment that is obsolescent or discontinued
and whose manufacturer is unable to support it. One current example of
distressed inventory is the VHS format.

Inventory credit

Inventory credit refers to the use of stock, or inventory, as collateral to raise

finance. Where banks may be reluctant to accept traditional collateral, for
example in developing countries where land title may be lacking, inventory
credit is a potentially important way of overcoming financing constraints. This
is not a new concept; archaeological evidence suggests that it was practiced in
Ancient Rome. Obtaining finance against stocks of a wide range of products
held in a bonded warehouse is common in much of the world. It is, for example,
used with Parmesan cheese in Italy. Inventory credit on the basis of stored
agricultural produce is widely used in Latin American countries and in some
Asian countries. A precondition for such credit is that banks must be confident

9
that the stored product will be available if they need to call on the collateral; this
implies the existence of a reliable network of certified warehouses. Banks also
face problems in valuing the inventory. The possibility of sudden falls in
commodity prices means that they are usually reluctant to lend more than about
60% of the value of the inventory at the time of the loan.

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 ACCOUNTS PAYABLE

(CURRENT LIABILITY)

Accounts payable is a file or account that contains money that a person or

company owes to suppliers, but has not paid yet (a form of debt). When you
receive an invoice you add it to the file, and then you remove it when you pay.
Thus, the A/P is a form of credit that suppliers offer to their purchasers by
allowing them to pay for a product or service after it has already been received.

The profession is unregulated, though there are international standard setting

bodies, an example of which is the International Accounts Payable
Professionals (IAPP), an association of more than 5,000 members in the United
States, Canada, the United Kingdom and other countries.[1] As part of its
Professional Standards Framework,[2] the IAPP has established a new definition
of accounts payable:

Accounts payable is a strategic, value-added accounting function that performs

the primary non-payroll disbursement functions in an organization. As such, the
AP operation plays a critical role in the financial cycle of the organization. AP
enables an organization to accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve the effectiveness of the entire
payables process. In addition to the traditional AP activities whereby liabilities
to third-party entities (suppliers, vendors, taxing authorities, etc.) are recognized
and paid based on the credit policies agreed to between the company and its
suppliers, today's AP departments have taken on much wider roles including
fraud prevention, cost reduction, workflow system solutions, cash-flow
management, internal controls and vendor (supply chain) financing.

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In households, accounts payable are ordinarily bills from the electric company,
telephone company, cable television or satellite dish service, newspaper
subscription, and other such regular services. Householders usually track and
pay on a monthly basis by hand using cheques or credit cards. In a business,
there is usually a much broader range of services in the A/P file, and
accountants or bookkeepers usually use accounting software to track the flow of
money into this liability account when they receive invoices and out of it when
they make payments. Increasingly, large firms are using specialized Accounts
Payable Automation to automate the paper and manual elements of processing
an organization's invoices.

Commonly, a supplier will ship a product, issue an invoice, and collect payment
later, which creates a cash conversion cycle, a period of time during which the
supplier has already paid for raw materials but hasn't been paid in return by the
final customer.

When the invoice arrives it is matched to the packing slip and purchase order,
and if all is in order, the invoice is paid. This is referred to as the three-way
match.

Quite a few organizations have been told that their vendors won‟t be sending
paper invoices in the future. They insist on e-invoicing, fax or email. You can
take advantage of this new methodology in an organized manner. It‟s not that
hard. Here‟s what Accounts Payable Now & Tomorrow suggests:

1) Set up a single e-mail address to be used exclusively for the receipt of

invoices. Whoever is responsible for either processing the invoices that come
into this address or forwarding them for approval should have the password, as
should their backup and perhaps the department manager. The important thing
is the e-mail account not belong to one person but several in case of absences
etc.

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2) Set up a dedicated fax number to be used for accounts payable invoices only.
Invoices can be retrieved throughout the day and integrated into the normal
accounts payable workflow.

3) Set up an e-fax facility to receive faxed invoices into an e-mail account. This
should eliminate the problem of illegible invoices.

4) Make sure your new e-mail address and fax number are included in all
correspondence with vendors, especially your New Vendor Welcome kit

EXPENSE ADMINISTRATION

Expense administration is usually closely related to accounts payable, and

sometimes those functions are performed by the same employee. The expense
administrator verifies employees' expense reports, confirming that receipts exist
to support airline, ground transportation, meals and entertainment, telephone,
hotel, and other expenses. This documentation is necessary for tax purposes and
to prevent reimbursement of inappropriate or erroneous expenses. Airline
expenses are, perhaps, the most prone to fraud because of the high cost of air
travel and the confusing nature of airline-related documentation, which can
consist of an array of reservations, receipts, and actual tickets.

Petty cash is also usually paid out by A/P personnel in the form of a check made
out to an employee, who cashes the check at the bank and puts the cash in the
petty cashbox.

INTERNAL CONTROLS

A variety of checks against abuse are usually present to prevent embezzlement

by accounts payable personnel. Separation of duties is a common control.
Nearly all companies have a junior employee process and print a cheque and a
senior employee review and sign the cheque. Often, the accounting software

1
will limit each employee to performing only the functions assigned to them, so
that there is no way any one employee – even the controller – can
singlehandedly make a payment.

Some companies also separate the functions of adding new vendors and
entering vouchers. This makes it impossible for an employee to add himself as a
vendor and then cut a cheque to himself without colluding with another
employee. This file is referred to as the master vendor file. It is the repository of
all significant information about the company's suppliers. It is the reference
point for accounts payable when it comes to paying invoices.

In addition, most companies require a second signature on cheques whose

amount exceeds a specified threshold.

Accounts payable personnel must watch for fraudulent invoices. In the absence
of a purchase order system, the first line of defense is the approving manager.
However, A/P staff should become familiar with a few common problems, such
as "Yellow Pages" ripoffs in which fraudulent operators offer to place an
advertisement. The walking-fingers logo has never been trademarked, and there
are many different Yellow Pages-style directories, most of which have a small
distribution. According to an article in the Winter 2000 American Payroll
Association's Employer Practices, "Vendors may send documents that look like
invoices but in small print they state "this is not a bill." These may be charges
for directory listings or advertisements. Recently, some companies have begun
sending what appears to be a rebate or refund check; in reality, it is a
registration for services that is activated when the document is returned with a
signature."

In accounts payable, a simple mistake can cause a large overpayment. A

common example involves duplicate invoices. An invoice may be temporarily
misplaced or still in the approval status when the vendors calls to inquire into its

1
payment status. After the A/P staff member looks it up and finds it has not been
paid, the vendor sends a duplicate invoice; meanwhile the original invoice
shows up and gets paid. Then the duplicate invoice arrives and inadvertently
gets paid as well, perhaps under a slightly different invoice number.

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 AUDITS OF ACCOUNTS PAYABLE

Auditors often focus on the existence of approved invoices, expense reports,

and other supporting documentation to support checks that were cut. The
presence of a confirmation or statement from the supplier is reasonable proof of
the existence of the account. It is not uncommon for some of this documentation
to be lost or misfiled by the time the audit rolls around. An auditor may decide
to expand the sample size in such situations.

Auditors typically prepare an ageing structure of accounts payable for a better

understanding of outstanding debts over certain periods (30, 60, 90 days, etc).
Such structures are helpful in the correct presentation of the balance sheet as of
year end.

The current portion of debt (payable within 12 months) is critical, because it

represents a short-term claim to current assets and is often secured by long term
assets. Common types of short-term debt are bank loans and lines of credit.

An increase in working capital indicates that the business has either increased
current assets (that is received cash, or other current assets) or has decreased
current liabilities, for example has paid off some short-term creditors.

Implications on M&A: The common commercial definition of working capital

for the purpose of a working capital adjustment in an M&A transaction ( i .e for
a working capital adjustment mechanism in a sale and purchase agreement) is
equal to:

CASH BALANCE:

Current Assets - Current Liabilities excluding deferred tax assets/liabilities, excess cash,
surplus assets and/or deposit balances.

items often attract a one-for-one purchase price adjustment.

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 WORKING CAPITAL MANAGEMENT

Decisions relating to working capital and short term financing are referred to
as working capital management. These involve managing the relationship
between a firm's short-term assets and its short-term liabilities. The goal of
working capital management is to ensure that the firm is able to continue its
operations and that it has sufficient cash flow to satisfy both maturing short-
term debt and upcoming operational expenses.

Decision criteria

By definition, working capital management entails short term decisions -

generally, relating to the next one year period - which are "reversible". These
decisions are therefore not taken on the same basis as Capital Investment
Decisions (NPV or related, as above) rather they will be based on cash flows
and / or profitability.

One measure of cash flow is provided by the cash conversion cycle - the
net number of days from the outlay of cash for raw material to receiving
payment from the customer. As a management tool, this metric makes
explicit the inter-relatedness of decisions relating to inventories, accounts
receivable and payable, and cash. Because this number effectively
corresponds to the time that the firm's cash is tied up in operations and
unavailable for other activities, management generally aims at a low net
count.

In this context, the most useful measure of profitability is Return on

capital (ROC). The result is shown as a percentage, determined by
dividing relevant income for the 12 months by capital employed; Return
on equity (ROE) shows this result for the firm's shareholders. Firm value
is enhanced when, and if, the return on capital, which results from

1
 working capital management, exceeds the cost of capital, which results
from capital investment decisions as above. ROC measures are therefore
useful as a management tool, in that they link short-term policy with
long-term decision making. See Economic value added (EVA).

MANAGEMENT OF WORKING CAPITAL

Guided by the above criteria, management will use a combination of policies

and techniques for the management of working capital. These policies aim at
managing the current assets (generally cash and cash equivalents, inventories
and debtors) and the short term financing, such that cash flows and returns are
acceptable.

Cash management. Identify the cash balance which allows for the
business to meet day to day expenses, but reduces cash holding costs.
Inventory management. Identify the level of inventory which allows for
uninterrupted production but reduces the investment in raw materials -
and minimizes reordering costs - and hence increases cash flow; see
Supply chain management; Just In Time (JIT); Economic order quantity
(EOQ); Economic production quantity
Debtors management. Identify the appropriate credit policy, i.e. credit
terms which will attract customers, such that any impact on cash flows
and the cash conversion cycle will be offset by increased revenue and
hence Return on Capital (or vice versa); see Discounts and allowances.
Short term financing. Identify the appropriate source of financing,
given the cash conversion cycle: the inventory is ideally financed by
credit granted by the supplier; however, it may be necessary to utilize a
bank loan (or overdraft), or to "convert debtors to cash" through
"factoring".

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Working capital is directly affecting by other management issues, such as
product mix, supply chain design and business model (for example agent vs.
distributor)

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COMPANY PROFILE

2
 COMPANY PROFILE

A saga of vision and enterprise

It has been a long and eventful journey of almost a century across 25 countries.
Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech
Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial
prudence and corporate governance.

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

private capital, princely patronage and state ownership. It is a story of ordinary
bankers and their extraordinary contribution in the ascent of Bank of Baroda to
the formidable heights of corporate glory. It is a story that needs to be shared
with all those millions of people - customers, stakeholders, employees & the
public at large - who in ample measure, have contributed to the making of an
institution.

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 OUR MISSION STATEMENT

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

augmenting stake holders' value through concern, care and competence.

Our Logo
Our new logo is a unique representation of a universal symbol. It comprises
dual „B‟ letterforms that hold the rays of the rising sun. We call this the Baroda
Sun.
The sun is an excellent representation of what our bank stands for. It is the
single most powerful source of light and energy – its far reaching rays dispel
darkness to illuminate everything they touch. At Bank of Baroda, we seek to be
the source that will help all our stakeholders realise 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-colour, compelling vermillion palette has been carefully chosen, for
its distinctivenes as it stands for hope and energy.
We also recognize that our bank is characterised by diversity. Our network of
branches spans geographical and cultural boundaries and rural-urban divides.
Our customers come from a wide spectrum of industries and backgrounds. The
Baroda Sun is a fitting face for our brand because it is a universal symbol of
dynamism and optimism – it is meaningful for our many audiences and easily
decoded by all.
Our new corporate brand identity is much more than a cosmetic change. It is a
signal that we recognize and are prepared for new business paradigms in a
globalised world. At the same time, we will always stay in touch with our
heritage and enduring relationships on which our bank is founded. By adopting

2
a symbol as simple and powerful as the Baroda Sun, we hope to communicate
both.

Bank of Baroda

Bank of Baroda

Type Public

Traded as BSE: 532134

Banking
Industry
Financial services
Investment services

Founded 1908

Bank of Baroda,
Baroda Corporate Centre,
Headquarter Plot No - C-26, G - Block,
s
Bandra Kurla Complex,
Mumbai India

M D Mallya
Key people (Chairman & MD)

Finance and insurance

Consumer banking
Corporate banking

Products Investment banking

Investment management
Private banking

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 Private equity
Mortgages
Credit cards

24,695.10 crore (US$5.51

Revenue
billion) (2011) [1]

358,397 crore (US$79.92

Total
assets billion) (2011) [2]

Website www.bankofbaroda.com

Bank of Baroda (BoB) is the third largest bank in India, after the State Bank of
India and the Punjab National Bank and ahead of ICICI Bank. BoB is ranked
763 in Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh
crores, or Rs. 3,583 billion, a network of over 3,409 branches and offices, and
about 1,657 ATMs. It plans to open 400 new branches in the coming year. It
offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, credit
cards and asset management. Its total business was Rs. 5,452 billion as of June
30.

As of August 2010, the bank has 78 branches abroad and by the end of FY11
this number should climb to 90. In 2010, BOB opened a branch in Auckland,
New Zealand, and its tenth branch in the United Kingdom. The bank also plans
to open five branches in Africa. Besides branches, BoB plans to open three
outlets in the Persian Gulf region that will consist of ATMs with a couple of
people.

The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20
July 1908 in the princely state of Baroda, in Gujarat. The bank, along with 13

2
other major commercial banks of India, was nationalised on 19 July 1969, by
the government of India.

International presence

Bank of Baroda Building

In its international expansion, the Bank of Baroda followed the Indian diaspora,
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 the Bank of Baroda‟s 85 overseas branches are ones in the world‟s
major financial centers (e.g., 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. The Bank of Baroda also
has a joint-venture bank in Zambia with nine branches. The 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.

The 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 seeks to establish joint ventures or subsidiaries. The bank has received
Reserve Bank of India approval to open offices in The Maldives, and New

2
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. The slogan of Bank of Baroda is "India's International Bank".

Bank of Braoda Branch Locator

One can use www.bankbranchin.com to locate Bank of Baroda branches in

India. You can also find IFSC code for BOB branches, that can used for NEFT
and RTGS transactions. Further, all contact details, address, etc. can be easily
filtered out with few clicks of mouse.[6]

Mile stone

1908-1959

1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda

(BOB)ps\pareek.
1910: BoB established its first branch in Ahmedabad.
1953: BoB established a branch in Mombasa and another in Kampala.
1954: BoB opened a branch in Nairobi.
1956: BoB opened a branch in Dar-es-Salaam.
1957: BoB established a branch in London.
1959: BoB acquired Hind Bank.

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1960s

1961: BoB merged in New Citizen Bank of India. This merger helped it
increase its branch network in Maharashtra.

BOB also opened a branch in Fiji.

1962: BoB opened a branch in Mauritius.

1963: BoB acquired Surat Banking Corporation in Surat, Gujarat.
1964: BoB acquired two banks, Umbergaon People’s Bank in
southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.
1964: BoB lost its branch in Narayanjanj (East Pakistan) due to the
Indo- Pakistan war. It is unclear when BOB had opened the branch.
1965: BoB opened a branch in Guyana.
1967: The Tanzanian government nationalized BoB‟s three branches
there and transferred their operations to the Tanzanian government-
owned National Banking Corporation.
1969: The Government of India nationalized 14 top banks,
including BoB.

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

government owning the rest.

1970s

1972: BoB acquired The 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.

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 1976: BoB opened a branch in Oman and another in Brussels. The
Brussels branch was aimed at Indian firms from Mumbai (Bombay)
engaged in diamond cutting and jewellery having business in
Antwerp, a major center for diamond cutting.
1978: BoB opened a branch in New York and another in the
Seychelles.
1979: BoB opened a branch in Nassau, the
Bahamas. 1977: BoB Opened a branch in Imphal

1980s

BoB opened a branch in Bahrain and a representative office in Sydney,

Australia.
BoB, Union Bank of India and Indian Bank established IUB International
Finance, a licensed deposit taker, in Hong Kong. Each of the three banks
took an equal share.

1985: BoB (20%), Bank of India (20%), Central Bank of India (20%)
and ZIMCO (Zambian government; 40%) established Indo-Zambia
Bank (Lusaka). BoB also opened an Offshore Banking Unit (OBU) in
Bahrain.
1988: BoB acquired Traders Bank, which had a branch network in
Delhi.

1990s

1990: BoB opened an OBU in Mauritius, but closed its representative

office in Sydney.
1991: BoB took over the London branches of Union Bank of India and
Punjab & Sind Bank (P&S). P&S‟s branch had been established before
1970 and Union Bank‟s after 1980. The Reserve Bank of India ordered

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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.

BoB also incorporate wholly owned subsidiary BOB Capital

Markets Ltd.for Broking Business.
1999: BoB merged in Bareilly Corporation Bank in another rescue. At
the time, Bareilly had 64 branches, including four in Delhi.

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

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

2000s

2000: BoB established Bank of Baroda (Botswana).

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2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank of
India‟s request. BSB was established in 1946 but traced its origins back
to 1871 and its function as the treasury office of the Benares state. In
1964, BSB had acquired Bareilly Bank (est. 1934), with seven branches;
it also had taken over Lucknow Bank in 1968. The acquisition of BSB
brought BOB 105 new branches.
2002: Bank of Baroda (Uganda) was listed on the Uganda Securities
Exchange (USE).
2003: BoB opened an OBU in Mumbai.
2004: BoB acquired the failed Gujarat Local Area Bank, and returned to
Tanzania by establishing a subsidiary in Dar-es-Salaam. BoB also opened
a representative office each in Kuala Lumpur, Malaysia, and Guangdong,
China.
2005: BoB built a Global Data Centre (DC) in Mumbai for running its
centralized banking solution (CBS) and other applications in more than
1,900 branches across India and 20 other counties where the bank
operates. BoB also opened a representative office in Thailand.
2006: BoB established an Offshrore 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) and in
Kenton, Harrow United Kingdom.
2008: BoB opened a joint venture life insurance company with Andhra
Bank and Legal and General (UK) called IndiaFirst Life Insurance
Company
2009: The Bank of Baroda registered with the Reserve Bank of New
Zealand, enabling it to trade as a bank in New Zealand (2009/09/01)

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2010s

2010: Malaysia awarded a commercial banking license to a locally

incorporated bank to be jointly owned by Bank of Baroda, Indian
Overseas Bank and Andhra Bank. The new bank, India BIA Bank
(Malaysia), will reside in Kuala Lumpur, which has a large population of
Indians. Andhra Bank will hold a 25% stake in the joint-venture, BoB
will own 40% and IOB the remaining 35%.

Subsidiaries

BOB Capital Markets Ltd. (BOBCAPS) is a SEBI-registered

[7]
investment banking company based in Mumbai, Maharashtra. It is a
wholly owned subsidiary of Bank of Baroda.[8] Its financial services
portfolio includes Initial Public Offerings, private placement of debts,
corporate restructuring, Business valuation, mergers & acquisition,
project appraisal and loan syndication.

Bank of Baroda financials 2014

Sales Rs. 24,695 crores

Profits Rs. 4,241 crores
Assets Rs. 3,58,397 crores

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 BOARD OF DIRECTORS

Dr. Hasmukh Adhia

Non-Executive Chairman

Shri Debadatta Chand Shri N S Srinath

Managing Director & CEO Executive Director

Shri Ajay K Khurana Shri Joydeep Dutta Roy

Executive Director Executive Director

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 PERFORMANCE OF PRODUCT AND SERVICES
WHOLESALE BANKING SERVICES:
The bank‟s target market ranges from large, blue-chip manufacturing
companies in the Indian corporate to small mid-sized corporate and agri-based
businesses. For these customers, the bank provides a wide range of commercial
and transactional banking services, including working capital finance, trade
services, transactional services, cash management, etc. the bank is also a leading
provider of structured solutions, which combine cash management services with
vendor and distributor finance for facilitating superior supply chain
management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the bank has made
significant inroads into the banking consortia of a number of leading Indian
corporate including multinationals, companies from the domestic business
houses and prime public sector companies. It is recognized as a leading provider
of cash management and transactional banking solutions to corporate
customers, mutual funds, stock exchange members and banks.
RETAIL BANKING SERVICES:
The objective of the Retail Bank is to provide its urgent market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by
world- class service and delivered to the customers through the growing branch
network, as well as through alternative delivery channels like ATM‟s, Phone
Banking and Mobile Banking. The Bank of baroda Preferred program for high
net worth individuals, the Bank of baroda Plus and the Investment Advisory
Services program have been designed keeping in mind needs of customers who
seek distinct financial solutions, information and advice on various investment
avenues. The bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for two-
wheelers. It is also a leading provider of Depository Participant (DP) services

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for retail customers, providing customers the facility to hold their investments in
electronic form. Bank of baroda was the first bank in India an International
Debit Card in association with VISA (VISA Electron) and issues the
MasterCard Maestro debit card as well. The Bank launched its credit card
business in late 2001. By September 30, 2005; the bank had a total card base
(debit and credit cards) of 5.2 million cards. The bank is also one of the leading
players in the “merchant acquiring” business with over 50,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments.
TREASURY:
Within this business, the bank has three main product areas – Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and
Equities. With the liberalization of the financial markets in India, corporate need
more sophisticated risk management information, advice and product structures.
These and fine pricing on various treasury products are provided through the
bank‟s Treasury team. To comply with statutory reserve requirements, the bank
is required to hold 25% of its deposits in government securities. The Treasury
business is responsible for managing the returns and market risk on this
investment portfolio.

RATINGS
CREDIT RATING:
The bank has its deposit programs rated by two rating agencies – Credit
Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited.
The Bank‟s Fixed Deposit programme has been rated „CARE AAA (FD)‟
[Triple A] by CARE, which represents instruments considered to be “of the best
quality, carrying negligible investment risk”. CARE has also rated the bank‟s
Certificate of Deposit (CD) programme “PR 1+” which represents “superior
capacity for repayment of short term promissory obligations”. Fitch Ratings
India Pvt. Ltd. (100%subsidiary of Fitch Inc.) has assigned the “tAAA (Ind)”

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rating to the bank‟s deposit programme, with the outlook on the rating as
“stable”. This rating indicates “highest credit quality” where “protection factors
are very high”. The bank also has its long term unsecured, subordinated (Tier-2)
Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier-1
perpetual Bonds and Upper Tier-2 Bonds rated by CARE and CRISIL Ltd.
CARE has assigned the rating of “CARE AAA” with the outlook on the rating
as “stable”. CARE has also assigned “CARE AAA [Triple A]” for the Banks
Perpetual Bond and Upper Tier-2 bond issues. CRISIL has assigned the rating
“AAA / Stable” for the Bank‟s Perpetual Debt programme and Upper Tier-2
Bond issue.
CORPORATE GOVERNANCE RATING:
The bank was one of the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating agency.
The Credit Rating Information Services of India Limited (CRISIL). The rating
provides an independent assessment of an entity‟s current performance and an
expectation on its “balanced value creation and corporate governance practices”
in future. The bank has been assigned a „CRISIL GVC Level 1‟ rating which
indicates that the bank‟s capability with respect to wealth creation for all its
stakeholders while adopting sound corporate governance practices is the
highest.
Bank of baroda began operations in 1995 with a simple mission: to be a
“WORLD-CLASS INDIAN BANK”. We realized that only a single-minded
focus on product quality excellence would help us get there. Today, we are
proud to say that we are well on our way towards that goal.

MISSION AND STRATEGIES

Our mission is to be a “WORLD CLASS INDIAN BANK”, benchmarking
ourselves against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit & compliance.

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To objective is to build sound customer franchises across distinct businesses so
as to be a preferred provider of banking services for target retail and wholesale
customer segments, and to achieve a healthy growth in profitability, consistent
with the Bank‟s risk appetite. We are committed to do this while ensuring the
highest levels of ethical standards, professional integrity, corporate governance
and regulatory compliance.
Our business strategy emphasizes the following:

Increase our market share in India‟s expanding banking and

financial services industry by following a disciplined growth
strategy focusing on quality and not on quantity and
delivering high quality customer service.

Leverage our technology platform and open scalable system

to deliver more products to more customers and to control
operating costs.

Maintain our current high standards for assets quality

through disciplined credit risk management.

Develop innovative products and services that attract our

targeted customers and address inefficiencies in the Indian
Financial Sector.

Continue to develop products and service that reduce our

cost of funds.
Focus on high earnings growth with low volatility.

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 PRODUCTS OF THE COMPANY
Instant Banking
bob World Internet Banking
bob World (Mobile
Banking) WhatsApp
Banking

Cards
Credit Card
Debit
Cards
Prepaid Cards

Payment Solutions
Phone Banking
ATMs and Kiosks

BOB World Wave - A Wearable Contactless Payment Smart Watch

Tokenisation
FASTag
Debit Card e-Mandate
bobWorld Digital Rupee

Merchant Payment Solutions

bob World Merchant Gateway
Baroda DigiNext Cash Management Services
BarodaINSTA SmartTrade

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 RETAIL BANKIN SERVICES IN BANK OF BARODA:
The objective of Retail Bank is to provide its target market
customers a full range of financial products and banking services,
giving the customer a one –stop window for all his / her banking
requirements. The products are backed by world-class service and
delivered to the customers through the growing branch network, as
well as through alternative delivery channels like ATMs, Phone
Banking, Net Banking and Mobile Banking. The Bank of baroda Plus
and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial
solutions, information and advice on various investment avenues. The
bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans
for Two- wheelers. It is also a leading provider of Depository
Participant services for retail customers, providing customers the
facility to hold their investment in electronic form. Bank of baroda was
the first in India to launch an international Debit Card in association
with VISA and issues the Master Card Maestro debit card as well. The
bank is also one of the leading players in the “merchant acquiring”.
Under retail banking the various other products and services offered by
the Bank of barodas are:

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 SAVINGS ACCOUNT
REGULAR SAVINGS ACCOUNT:
An easy-to-operate savings account that allows you to issue cheques, draw
Demand Draft and withdraw cash. Check up on your balances from the comfort
of your home or office through Net Banking, Phone Banking. Need money
urgently? Withdraw cash from any of the 2526 ATM centers spread across the
country.
SAVING PLUS ACCOUNT:
Introducing the best banking option for you with Bank of baroda Savings
Plus Account. Now you can get access to some of the finest banking facilities
with Bank of baroda‟s Savings Plus Account. All you have to do is maintain an
Average Quarterly Balance of Rs. 10,000. Free International Debit Card for all
account holders for life time of the account. Free payable at par chequebook
without any usage charges up to limit of 50,000 per month. Free Demand Draft
on Bank of baroda locations, upto a limit of 25,000/- per day, etc. and many
more facilities are provided.
SAVING MAX ACCOUNT:
Welcome to the world of convenience. Presenting Savings Max Account,
loaded with maximum benefits to make your banking experience a pleasure. By
maintaining an average quarterly balance of just Rs. 25,000/- you get a host of
premium services from Bank of baroda absolutely free. Free Gold Debit Card
for primary account holder for life time of the account. Gold Debit Card for
other account holder at Rs. 250 p.a.
SENIOR CITIZEN ACCOUNT:
Bank of baroda appreciates your need and endeavors, which is why, we
present an account especially dedicated to you, which like a dutiful child will
help your needs in the best manner possible. Shop with pride with your Easy
Shop International Debit Card offered free for life to the first applicant. Payable

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at par (PAP) chequebooks are issued free. Free Email statement facility and
National Electronic Funds Transfer facility available.
NO FRILLS ACCOUNT:
An effort to make banking simpler and more accessible on our customers,
we have introduced the „No Frills‟ Saving Account, which offers you all the
basic banking facilities & can even avail of services like Net Banking, Mobile
Banking free of cost. All this with a Zero Initial Pay – in and Zero Balance
account. In this enjoy free IVR based phone banking. Get free quarterly account
statements. Access your account through a free ATM card. Enjoy free cash
deposits at Branch. Free transactions at Bank of baroda ATMs, etc.
INSTITUTIONAL SAVING ACCOUNT:
A specially designed account that offers twin benefits of a saving as well as
a current account. Your funds continue to earn you interest while you enjoy
hassle-free banking & a host of other features. All this and more in a Zero
Balance Account.
SALARIES ACCOUNT
REGULAR SALARIES ACCOUNT:
The Bank of baroda Regular Salary account is a zero Balance account. No
minimum balance is required. Interest at the applicable savings account rate.
Free issuance of Demand Draft up to Rs. 25,000 per instrument. Free Net
Banking, Phone Banking, Mobile Banking, Free Sweep-in facility, Free
intercity/branch banking, safe deposit lockers.
CLASSIC SALARIES ACCOUNT:
The classic salary is a zero balance account which earns you interest on your
savings from salary at a competitive rate fixed by the bank from time to time.
There is no fee applicable for branch transactions and receive banking
statements once every six months.

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 PREMIUM SALARY ACCOUNT:
A power packed account for successful salaried professionals, the premium
salary account comes with a free international debit card and add-on debit card
for life, with the option of choosing between a Silver or Gold card at
preferential rates.
PAYROLL ACCOUNT:
It is the zero balance account, Nil interest payout on account balance. It also
provides Personal Accident Insurance cover of Rs. 2,00,000. Free Payroll Debit
Card. Branch transaction at Rs. 60 per transaction. Free Net Banking, Phone
Banking, Free Insta Alert Facility, Six-monthly account statements. Free
monthly email statements. Free Passbook facility is available at home branch
for account holders.
KIDS ADVANTAGE ACCOUNT:
Start saving for your child today and secure his/her future. Open a Savings
Account and transfer money every month into his/her Kids Advantage Account.
Watch the savings grow as your child grows. The accumulated savings in the
Kids Advantage Account can over the years help in meeting your child‟s needs.
PENSION SAVING BANK ACCOUNT:
A Pension Saving Account is a Zero Balance Account that accumulates your
pension over the years. It comes with a free International Debit Card and
facilities like Phone and Net Banking. You can access this account from any
branch within the Bank of baroda network and also request for transfer to
another bank.
FAMILY SAVING GROUP:
The Family Saving Group links together up to four individual Bank of
baroda accounts (same family) under a single group. Take advantage of the
group Average Quarterly Balance (AQB) and operate your individual accounts
without worrying about minimum balance.
CURRENT ACCOUNT

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 PLUS CURRENT ACCOUNT:
Bank of baroda Plus Current Account gives you the power of inter-city
banking with a single account and access to more than 444 cities. From special
cheques that get treated at par with local ones in any city where we have a
branch, faster collection of outstation cheques (payable at branch locations).
Free account to account transfer between Bank of baroda accounts to Free inter-
city clearing of up to 100 lakhs per month, our priority services have become
the benchmark for banking efficiency. Plus Current Account requires you to
maintain an average quarterly balance of Rs. 1,00,000.

TRADE CURRENT ACCOUNT:

Bank of baroda Trade Current Account gives you the power of inter-city
banking with a single account. From special cheques that get treated at par with
local ones in any city where we have a branch, to free account to account funds
transfer between Bank of baroda accounts, to free inter-city clearing of up to 50
lakhs per month, our priority services have become the benchmark for banking
efficiency. Trade Current account requires you to maintain an average quarterly
balance of Rs. 40,000.
PREMIUM CURRENT ACCOUNT:
You can avail benefits of inter-city banking account with Premium Current
Account that requires an average quarterly balance of only Rs. 25,000 offers
Payable-at- par cheque book facility & Free inter-city clearing transactions
across our network up to Rs.25 lacs per month. A Current Account with the
benefits of accessing your account from a large network of branches, and
through direct access channels – the phone, mobile, Internet and through the
ATM.

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 REGULAR CURRENT ACCOUNT:
With the Bank of baroda Regular Current account, you can access your
account anytime, anywhere, pay using payable at par cheques or deposit cheque
at any Bank of baroda branch. It also facilities FREE NEFT transactions &
FREE RTGS collections for faster collections in your account. Regular Current
account requires you to maintain an average quarterly balance of only Rs.
10,000. With a vast network of branches in cities all over the country, and
access to a multitude of ATM‟s, you can keep track fall your transaction
anytime.
FLEXI CURRENT ACCOUNT:
Bank of baroda Flexi Current Account is the answer to your changing
banking needs during peak seasons. With Bank of baroda Flexi Current Account
your Cash Deposit and anywhere transaction limits are a multiple of the balance
you maintain in your Current Account. So, during peak season you get the
benefit of higher transaction limits due to the higher average balances
maintained in your account. Flexi Current Account requires you to maintain a
minimum average monthly balance (AMB) of just Rs. 75,000.
APEX CURRENT ACCOUNT:
The top position is always the coveted position. With the Apex current
account, take your business to a new high. On maintaining an average quarterly
balance of Rs. 10 lakhs, this account makes sure you make the most of every
business opportunities coming your way. Unlimited, free, anywhere Banking
experience at the Apex is reserved for you.
MAX CURRENT ACCOUNT:
Presenting maximum benefits and minimum hassles for you with Max
Current Account! With a Rs. 5 lakhs average quarterly balance requirement, we
present to you a world of privileged that helps your business expand and grow.
Features like maximum free transaction limits including other beneficial

4
features on this current account enhances your business potential to the
maximum.

FIXED DEPOSIT
REGULAR FIXED DEPOSIT:
Potential to earn compound interest by reinvesting the principal amount
along with the interest earned during the period. No penalty for premature
withdrawal. Flexibility in altering period of deposit, maturity payment
instructions, principal amount and rollover mode before maturity of the rollover
deposit. Higher rate of interest Fixed Deposits for Senior Citizens.
5 YEAR TAX SAVING FIXED DEPOSIT:
In 2006, it was announced for the first time that bank fixed deposits booked
by an individual / HUF for 5 years & up to Rs. 1,00,000/- will be allowed
exemption under Sec 80c of the income tax, 1961 subject to necessary
declarations taken from the customer.
SUPER SAVER FACILITY:
A high rate of interest along with the liquidity of a Savings Account by
opting for a Supersaver Facility on your savings account. Avail of an overdraft
facility of up to 75% of the value of your fixed deposit.

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 SWEEP IN FACILITY:
There is a choice between a Savings Account or Current Account to link to
your Fixed Deposit. Earn higher interest on the money till it is swept- in, while
the remaining Fixed Deposit continues to earn you interest. Multiple deposits
can be linked to the savings. Flexibility in altering the period of deposit,
maturity and payment instructions, principal amount and rollover mode. Senior
citizen enjoy a higher rate of interest on their Fixed Deposits.

DEMAT ACCOUNT
Bank of baroda is one of the leading Depository Participant (DP) in the
country with over 8 lacs demat accounts. Bank of baroda Demat services offers
you a secure and convenient way to keep track of your securities and
investments, over a period of time, without the hassle of handling physical
documents that get mutilated or lost in transit. Bank of baroda is Depository
participant both with – National Securities Depositories Limited (NSDL) and
Central Depository Services Limited (CDSL).

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 CONVENIENCE BANKING
BILL PAY:
No need to stand in long queues and waste time and effort for paying bills
through utility company‟s counters. Register for Bill Pay and pay utility Bills
through ATM/Net Banking Mobile Banking.

Pay at your convenience anytime, from anywhere.

Register online on Bank of baroda website or by submitting the Bill Pay
registration form at the branch.

INSTA ALERT
Be updated on your accounts while on the move. Receive alerts for transactions
in your account.

SMS alert on mobile phone or e-mail alerts on e-mail or both.

Register online through Net Banking or by submitting the Insta Alert

registration form at the branch.

DIRECT BANKING
PHONE BANKING:
Avail the convenience of operating the bank A/c from the comfort of home,
without even visiting the branch.

Carry out multiple transactions with great ease,e.g.:

Balance enquiry.
Details of last 5 transactions.

Cheque status enquiry and request for stop cheque.

Cheque book and statement request.
Information on various product offerings and lots more!

NET BANKING
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Your account is where you are!

Get real time information at the click of a button.

Bank of baroda‟s Net Banking is secure. It uses industry standard technologies

and infrastructures, thus ensuring the safety and security of the transactions.

Following are some of the transactions that can be carried out.

View A/C Balances and Statements.
Transfer funds between accounts.
Create fixed deposit online.
Request for a demand draft.
Pay bills.
Order for a cheque book, request stop payment on a cheque and lots more!

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 MOBILE BANKING

Access the bank account with Bank of baroda‟s unique Mobile Banking service.

Mobile banking works through a set of messages (SMS) without even making a
call.

All one needs to do is to type in the specified code for the transaction as a text
message and send it to 676712.

Bank of baroda‟s Mobile Banking service provides a host of features at your

finder tips through SMS.

Get balance details, obtain last 3 transaction detail.

Request for a cheque book, stop a cheque
payment. Enquire cheque status.
Request an A/C
statement. Get fixed
deposit details.

LOANS
HOME
LOAN:
Bank of baroda brings, Bank of baroda home loans to your doorstep. Over 3
decades of exclusive experience, a dedicated team of experts and a complete
package to meet all your housing finance needs. Bank of baroda home loans,
help you realize your home. Home loans for individuals to purchase
(fresh/resale) or construct houses. Application can be made individually or
jointly. Bank of baroda finances up to 85% maximum of the cost of the property
based on the repayment capacity of the customer.
TWO WHEELER LOAN:
Whichever the bike, our Two Wheeler Loan is the answer. With quick
approvals, flexible payment options and easy repayment – we will help you buy
the bike you desire.

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FEATURES & BENEFITS:

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Flexible repayment options, ranging from 12 to 48 months available even at the
point of purchase.

Repay through post-dated cheques with easy EMIs.

Hassel free loans.
Speedy loan approval.

Available for almost all models at attractive interest rates.

Free gifts from time to time on approval of your two wheeler loan.
Special schemes to suit your needs.

EDUCATION LOAN:
With Bank of baroda student education loans, pursue your dream higher
studies without worrying for financial assistance. We provide student education
loans for all Graduate, Post-Graduate, Engineering, Medical, MBA, Vocational
Courses offered by recognized institutions in India. No more running from pillar
to post for availing student loans! Our friendly sales managers will guide you in
every step to make your dreams into reality.
SMART DRAFT – OVERDRAFT AGAINST SALARY:
Smart Draft is an unsecured overdraft facility offered to Bank of baroda‟s
corporate salary account holders. The facility operates in the form of additional
funds in the account, for use during short-term exigencies. Our corporate salary
account holders can avail of facility of up to 3 times the salary.
LOAN AGAINST PROPERTY:
Bank of baroda brings to you Loan Against Property (LAP). You can now
take a loan against your residential or commercial property, to expand your
business, plan a dream wedding, fund your child‟s education and much more.
You can depend on us to meet all your business requirements even to purchase a
new shop or office for your business. Loan to purchase Commercial Property
(LCP) is a specially designed to help you expand your business without
reducing the capital from your business.

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 LOAN AGAINST SECURITIES:
With Bank of baroda‟s Loan against securities, you can get an overdraft
against your securities like:

Equity shares.

Mutual fund unit.

Gold exchange traded fund.

NABARD‟s Bhavishya Nirman

Bonds. RBI Bonds.
Policies issued by LIC & Select Private Insurance Companies.
NSC, KVP and Gold Deposit Certificates.

NEW CARS LOAN:

FEATURES AND BENEFITS:

Covers the widest range of cars and multi – utility vehicles in India.
Avail 100% finance on your favourite car.
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INVESTMENT AND INSURANCE

BONDS:
Just as people need money, so do companies and governments. A company need
funds to expand into new markets, while governments need money for
everything from infrastructure to social programs. The problem large
organizations run into is that they typically need far more money than the
average bank can provide. The solution is to raise money by issuing bonds to a
public market. Thousands of investors then each lend a portion of the capital
needed. A bond is nothing more than a loan for which you are the lender. The
organization that sells a bond is known as the issuer.
The different types of bonds include government securities, corporate
bonds, commercial paper, treasury bills, strips, etc. these bonds are either fixed
interest component remains the same throughout the tenure of the security. Say
a 10-year bond issued today bears 8% interest. Even if 5 years hence, the
interest rate in the economy goes down to 5%, this 8% bond will interest rate
varies depending on the interest rate of a security that the bond chooses to
benchmark its interest rate too.
INSURANCE:
Life insurance is designed to offer financial protection for you and your
family during the times of uncertainties. Choose from a range of traditional
insurance and unit linked plans designed to help you with your savings,
retirement, investment, and protection needs.

MUTUAL FUNDS:
Mutual funds are funds that pool the money of several interest to invest in
equity or debt markets. Mutual funds could be Equity funds, Debt funds or
5
balanced funds. Funds are selected on quantitative parameters like volatility,
FAMA model, risk adjusted returns, rolling return coupled with a qualitative
analysis of fund performance and investment styles through regular interactions
/ due diligence processes with fund manager.

5
OBJECTIVES OF

THE STUDY

5
 OBJECTIVES OF THE STUDY

1. To know the causes of the financial analysis of Bank of baroda

2. To know procedure of financial analysis of Bank of baroda .
3. To know the working capital management of Bank of baroda

5
RESEARCH METHODOLOGY

5
 RESEARCH METHODOLOGY

The report is the result of a survey which was undertaken in working capital of
Bank of baroda . The objectives of the project has been fulfilled by getting
response from the Employee's associated to these segments through a personal
interview in finance department. The responses available through the balance
sheet and personal interview are used to evaluate the working capital
management of the company.

THE RESEARCH PROBLEM

The problem formulation is the first step to a successful research process. The
summer training undertaken the problem of analyzing the trend analysis of
working capital management of Bank of baroda and to find out the ratio
analysis of company.

THE RESEARCH DESIGN

The research design used in the project is Descriptive Research.

The investigation is carried upon the working capital in working capital
management in Bank of baroda in Lucknow. The reason for choosing this
design is to get responses from the company‟s Balance sheet.

COLLECTION OF DATA

The data has been taken from secondary source

 Secondary data source

Secondary data was collected from following sources

Balance sheet

5
Websites

Books

Personal consultation

THE AREA OF WORK

The field work is conducted in the Bank of baroda in financial

department Lucknow .

THE ANALYTICAL TOOLS USED

The analytical tools used are mostly graphical in nature which

include

 Bar Charts
 Tables showing percentage

5
 LIMITATIONS

It is not possible to remove the limitation of any investigators. So this project

also has certain limitation that is:

1) Information was gathered through the rating of the subject, thus biasness
is possible.
2) As the sample size was small it is possible that it may not represent the
precise picture.
3) Employees of the organization may hide the fact.
4) The management did not agree to disclose all the confidential data.
5) Number of respondent are very less, so clear conclusion can‟t be drawn.

6
DATA ANALYSIS AND
INTERPRETATION

6
 DATA ANALYSIS AND INTERPRETATION

PERFORMANCE HIGHLIGHTS

Company has completed another successful year in 2020-21 registering

impressive growth over the previous year. During the year, the company has
registered a net profit of Rs. 30.50 million by increasing production to Rs.
191.77 million from a level of Rs. 149.83 million during the previous year. The
turnover during the year has increased by 35.40% to Rs. 194.59 million from
Rs. 143.72 million during the previous year. During the year 2020-21, net worth
of the company reached a level of Rs. 87.28 million. The major highlights of
performance during the year 2022-23 are summarized below.

(Rupees in million)

s.no. Particulars 2022-2023 2021-2022 Increased by

1 Turnover 194.59 143.72 35.40%
2 Production 191.77 149.83 27.99%
3 Value added 74.91 61.46 21.88%
4 Net profit before 30.50 19.14 59.35%
tax
5 Value added per 6.69 5.06 32.21%
employee (Rs. In
lacs)
6 New worth 87.28 56.96 53.23%

6
1 What is Profitability Ratio (EBIT) in Bank of baroda in last 5 year?

PROFITABILITY RATIO -:

EBIT (Earnings Before Interest and Taxes)

Revenue - COGS- Operating Expenses

EBIT =

Year EBIT
2019-18 -24.94
2020-19 -10.86
2021-20 1.84
2022-21 19.14
2023-22 30.5

INTERPETATION:

Profitability Ratio (EBIT) in Bank of baroda in last 5 year is increased year by year
in 2019-18 is -24.94 and in 2023-22 is 30.50

6
Q.2 What is Return on Assets in Bank of baroda in last 2 year?

Return on Assets

Return on Assets = Net Income / Assets * 100

2022-21 33.52%
2023-22 34.94%

INTERPETATION:

Return on Assets in Bank of baroda in last 2 year is increased year by year in 2022-
21 is 33.52 and in 2023-22 is 34.94%

6
Q. 3 What is solvency ratio in Bank of baroda in last 5 year?

SOLVENCY RATIO

2019-18 -113.4%
2020-19 -121.61%
2021-20 -117.14%
2022-21 56.96%
2023-22 87.28%

INTERPETATION:

solvency ratio in Bank of baroda in last 5 year is increased year by year in 2019-18
is -113.40 and in 2023-22 is 87.28%

6
Q.4 What is Liquidity Ratio in Bank of baroda in last 2 year?

2022-21 1.4
2023-22 4.57

LIQUIDITY RATIO

In , the Acid-test or quick ratio or liquid ratio measures the ability of a company to use its o

INTERPETATION:

The quick ratio 2022-21 is 1.4 and in 2023-22 the ratio is increasing 4.57.

6
Q. 5 What is Current Ratio in Bank of baroda in last 2 year?

2023-22 4.53
2022-21 2.4

CURRENT RATIO

The current ratio is a financial ratio that measures whether or not a firm has
enough resources to pay its debts over the next 12 months. It compares a
firm's current assets to its current liabilities. It is expressed as follows:

INTERPETATION:

The current ratio 2022-21 is 2.40 and in 2023-22 the ratio is increasing 4.53.

6
Q. 6 What is Networking Capital in Bank of baroda in last 2 year?

NETWORKING CAPITAL

Net Working Capital =Current Assets –Current Liabilities

2023-22 2022-21
Current assets 30581.46 13222.70
Current liabilities 6749.80 5506.25
Net W.C. 23831.66 7716.45

INTERPETATION:

The NETWORKING CAPITAL 2022-21 is 7716.45 and in 2023-22 the ratio is

increasing 23831.66.

6
Q.7 What is activity ratio in Bank of baroda in last 5 year?

ACTIVITY RATIO

Rs. In million

2019-18 51.4
2020-19 70.07
2021-20 94.42
2022-21 143.72
2023-22 194.59

INTERPETATION:

The activity ratio in Bank of baroda in last 5 year is increase year by year 2019-18
is 51.40 and in 2023-22 the ratio is increasing by 194.59.

6
Q.8 What is debt equity ratio in Bank of baroda in last 2 year?

2022-21 1.26%
2023-22 1.02%

DEBT EQUITY RATIO

Debt equity ratio =total liabalities /share holders equity

INTERPETATION:

The Dept equity ratio 2022-21 is 1.02 and in 2023-22 the ratio is increasing
1.26.

7
Q. 9 What is value added per employee in Bank of baroda in last 5 year?

VALUE ADDED PER EMPLOYEE

Rs. In Lakhs

2019-18 1.93
2020-19 2.8
2021-20 4.02
2022-21 5.06
2023-22 6.69

INTERPETATION:

The value added per employee in Bank of baroda in last 5 year 2019-18 is 1.93
and in 2023-22 the ratio is increasing 6.69.

7
FINDINGS

7
 FINDINGS

The summary of results of various ratios are presented. The summary of major
findings are mentioned below :-

(I) Gross Working Capital :- Trend of Gross Working Capital ( GWC) or

total current assets showed an upward trend. The total investment in current
assets increases from Rs. 7716.45 million to Rs. 23831 million during the
period under reviewed. This is a good indication from the smooth running of the
day-to-day operation as well as paying the current obligation points of review.
But since 2020-19 it has been decreased continuously the main factor for this is
decrease in sundry debtors.

Net Working Capital ( NWC) :- Likewise GWC trend of NWC also showed
an increasing trend up to 2023-22 but thereafter it has decreased year by year.
The highest NWC was in the year of 2020-19 and lowest being in the year of
2021-20. The factor contributed to decrease is the decrease in sundry debtors
considerably and also increase in sundry creditors and other current liabilities.
This must be reviewed and attempts to reduce the other current liabilities. This
attempts shall improve the liquidity position of organization.

Position of Liquidity or Trend in liquidity :- Analysis of various liquidity

ratio express the trend of liquidity over the past twelve years.

Analysis of current ratio reveals that the ratio shown an increasing trend up
to 1999-00 but thereafter it decreased . It was highest in the year of 2023-22
being 3.97:1 thereafter it has decreased continuously and comes to 1.09 in 2021-
20. This is below the norms. It should be improve by reducing the other current
liabilities and sundry creditors. However current ratio in many cases does not
reveal the real picture of liquidity as the same is trend analysis only . It

7
takes into consideration all the components of current assets (e.g.) inventory and
debtors, which ultimately takes some times for conversion into cash.

Analysis of the Super quick ratio also reveals that the trend is increasing up to
2019-18 but after that it decreased. It has .71:1 in 2023-22 and then comes to
.66:1 except slightly increased in the year 2021-20 .In the year 2022-21 it is
below than the standard norms of 1:1. These leads to analysis of super quick
ratio which is quite relevant in this case.

The results shows a gloomy picture in comparison to current & quick ratio.
Since super quick ratio excludes aspects of sundry debtors from the
components of current assets in comparison to super quick ratio, hence analysis
of sundry debtors needs for the investigation. This aspect is further summarized
and explained in expressing the results of efficiency of working capital used.

Over all receivable management shows a gloomy picture, which indicates

inefficiency in receivable management. However the situation is quite
improving due to continuous efforts of present management. In a nut shell the
position of sundry debtors requires more constituent collection effort, special
cell to monitor and review the position incessantly, pressure on various state
electricity department and SEB through central govt. for speed collection of
receivable.

7
CONCLUSIONS

7
 CONCLUSIONS

In spite of various obstacle hurdles, limitations and bottlenecks, financial

analysis in Bank of baroda has a bright future for growth and expansion. The
organization is a profit making and contributing lot in the path of the progress of
the nation by providing easy working capital management of Bank of baroda to
various states including some strategic remote areas. financial analysis of Bank
of baroda is the only pioneer organization in the field of financial analysis in
Bank of baroda sector at present . As mentioned in this chapter the organization
is already working on its planning for rapid growth by commissioning more
projects, entering. Our nation is facing acute shortage of technology . Thus to
achieve rapid industrialization & growth of other sector including software.
financial analysis of Bank of baroda has to play a greater role by increasing its
capacity manifold in future / coming days and the organization has great
importance from the nations point of view.

Trend analysis in a business enterprise is synonymous with the blood of the

human body. The importance of Trend analysis from liquidity and profitability
point of view can not be over emphasized. Both these significant aspects largely
depends upon efficient management of Trend analysis, (i.e.) management of
inventory, receivable, cash & bank balances and short term creditors & other
short-term liabilities, liquidity which refers to the ability of a firm to meet its
current obligations encompasses current assets and their structure. In recent
times high importance is being given corporate liquidity as it has direct impact
on profitability as well as long term survival of the firms. Maintaining sound
liquidity and profitability position ultimately depends upon efficient and smooth
management of working .

The present study is divided into five parts. In this part importance
of the study, importance of financial analysis and potential, status and

7
development of financial analysis of Bank of baroda , data and methodology of
the study has been discussed. In the second part the objectives of the study has
clearly defined. In third chapter deals with various concepts, aspects &
dimensions of working capital. In forth part an attempt is made to know the
trend, status and management of Trend analysis through analysis by using
various financial and statistical techniques. In fifth chapter summery of result,
findings, scope of futures research limitations of study etc. has been described
briefly.

7
BIBILIOGRAPHY

7
 BIBILIOGRAPHY

1- I M PANDEY FINANCIAL MANAGEMENT

2- C.R. KOTHARI Research Methodology
3- Website : www.reliancemutual.com
4- www.google.com
5- www.wikipedia.com

7
APPENDIX

8
Balance Sheet of Bank of
------------------- in Rs. Cr. -------------------
baroda
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 489.52 489.52 489.52 489.52 489.52
Equity Share Capital 489.52 489.52 489.52 489.52 489.52
Reserves 31,804.92 32,563.83 33,595.08 32,557.53 29,954.58
Networth 32,294.44 33,053.35 34,084.60 33,047.05 30,444.10
Secured Loans 0.00 0.00 0.00 2,550.00 1,286.00
Unsecured Loans 89.55 126.29 61.00 104.77 129.20
Total Debt 89.55 126.29 61.00 2,654.77 1,415.20
Total Liabilities 32,383.99 33,179.64 34,145.60 35,701.82 31,859.30
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 5,279.20 12,965.92 12,304.80 11,812.47 10,585.56
Less: Accum. Depreciation 1,683.32 9,002.73 8,164.28 7,119.53 6,127.07
Net Block 3,595.88 3,963.19 4,140.52 4,692.94 4,458.49
Capital Work in Progress 168.34 315.36 517.80 642.12 1,171.59
Investments 661.42 663.40 417.67 420.17 429.17
Inventories 7,372.38 9,637.39 10,101.66 9,797.55 11,763.82
Sundry Debtors 22,075.56 24,428.98 26,223.50 28,071.92 29,234.49
Cash and Bank Balance 10,491.79 10,085.99 9,812.70 11,872.93 7,732.05
Total Current Assets 39,939.73 44,152.36 46,137.86 49,742.40 48,730.36
Loans and Advances 16,864.83 17,595.79 17,253.28 17,293.54 15,338.84
Total CA, Loans &
56,804.56 61,748.15 63,391.14 67,035.94 64,069.20
Advances
Current Liabilities 19,653.30 22,069.67 23,281.09 26,763.33 29,327.02
Provisions 9,192.91 11,440.79 11,040.44 10,326.02 8,942.13
Total CL & Provisions 28,846.21 33,510.46 34,321.53 37,089.35 38,269.15
Net Current Assets 27,958.35 28,237.69 29,069.61 29,946.59 25,800.05
Total Assets 32,383.99 33,179.64 34,145.60 35,701.82 31,859.30

Contingent Liabilities 13,992.77 8,778.10 6,016.83 11,337.90 3,441.04

Book Value (Rs) 131.94 135.04 139.26 135.02 124.38