CHAPTER 1

INTRUDUCTION

BANK OF BARODA

1.1 Introduction

Bank of Baroda was established on April 20, 1908, as a small regional bank in Baroda, Gujarat. The
bank’s early success was due to its strong leadership and focus on meeting the financial needs of the
local population. The Maharaja of Baroda envisioned the bank as a key institution to foster economic
growth in the region by providing financing for small and medium businesses, agricultural activities,
and individuals. The early years saw steady growth, and the bank soon expanded its operations in
various regions.

After India's independence in 1947, the Indian government embarked on a program of nationalizing
major banks to ensure better access to banking services for the masses and to drive economic
development. In 1969, the Indian government nationalized Bank of Baroda along with 13 other major
commercial banks, transforming it into a state-owned entity.

Bank of Baroda diversified into a wide range of financial services, such as personal loans, corporate
banking, investment banking, and wealth management.

the bank took its first steps into the global market by opening a branch in Nairobi, Kenya. This
marked the beginning of its international operations. Over the next several decades, Bank of Baroda
extended its reach to countries across the globe, with branches in key markets such as the United
States, United Kingdom, United Arab Emirates, South Africa, Singapore, and many.

One of the most significant developments in Bank of Baroda’s recent history was its merger with
Vijaya Bank and Dena Bank in 2019. This consolidation created the third-largest public sector bank
in India by assets, and significantly expanded the bank’s customer base, branch network, and
financial resources. The merger was part of the Indian government’s strategy to strengthen the
banking sector, improve efficiency, and reduce the overall number of public sector banks. Post-
merger, Bank of Baroda leveraged

the combined strengths of the three banks to enhance its competitive position and improve service
delivery across various sectors.
1.2 Brief Overview of the Company

Bank of Baroda, established in 1908, is one of India's oldest and largest public sector banks. The bank
is headquartered in Vadodara, Gujarat, and operates more than 9,500 branches and offices across
India and several international markets. Over the years, BoB has made significant strides in
modernizing its operations, expanding its offerings, and adopting digital banking services. The bank
provides a comprehensive suite of products, including retail banking, corporate banking, investment
banking, asset management, and wealth management services. It also has a strong presence in the
foreign exchange and international banking markets.

1.3 Inception of the Company

Bank of Baroda was founded by Maharaja Sayajirao Gaekwad III of Baroda in 1908 with the aim of
providing financial services to the people of Baroda (now Vadodara), Gujarat. The inception of the
bank was a response to the growing demand for modern banking services during the early 20th
century. Over time, the bank expanded its operations nationally and internationally, establishing itself
as one of India's most prominent banks. Since its inception, Bank of Baroda has played a pivotal role
in shaping the Indian banking landscape, providing essential banking services to individuals,
businesses, and governments.

1.4 Nature of the Business Carried Out

Bank of Baroda operates in various segments of the financial services industry, including retail
banking, corporate banking, treasury services, and international banking. Its retail banking services
include savings accounts, current accounts, loans, credit cards, and wealth management products.
In the corporate banking sector, BoB offers term loans, working capital finance, trade finance, and
project financing. The bank’s treasury services include managing investments, foreign exchange
operations, and government securities. Additionally, Bank of Baroda has a strong presence in the
international market, with branches and subsidiaries in multiple countries.

1.5 Mission

The mission of Bank of Baroda is to be the most respected and preferred bank in India, providing high-
quality financial services while maintaining a balance between profitability and customer
satisfaction. The bank strives to be a global leader in the banking sector by offering innovative,
customer-centric solutions and contributing to the economic development of the country. The bank
aims to build strong relationships with customers, employees, and shareholders through sustainable
and ethical banking practices.
1.6 Vision

Bank of Baroda’s vision is to become the most trusted and preferred bank for all customers by
providing accessible and innovative banking services. The bank envisions a future where it is
recognized for its customer-centric approach, strong financial performance, and global presence. It
aims to transform banking experiences by leveraging technology, sustainability, and a commitment to
social and environmental responsibility.

1.7 Values

Bank of Baroda operates under a set of core values that guide its decision-making processes and
organizational culture. These values include:

• Customer Centricity: Prioritizing customer satisfaction and building long-term relationships.

• Integrity: Upholding ethical standards and transparent practices.

• Innovation: Embracing technology and continuous innovation to improve services.

• Excellence: Striving for excellence in all aspects of operations.

• Sustainability: Promoting environmentally and socially responsible practices.

• Teamwork: Encouraging collaboration and a positive work environment.

1.8 Goals and Objectives

The key goals and objectives of Bank of Baroda include:

• Achieving sustainable growth by expanding its customer base and product offerings.
• Enhancing financial inclusion through the introduction of innovative banking solutions.
• Maintaining high standards of corporate governance and transparency.
• Leveraging digital banking technologies to improve operational efficiency and customer
service.
• Strengthening the bank’s international presence and expanding into new markets.
• Contributing to the economic and social development of communities through corporate
social responsibility initiatives.
1.9 Quality Policy

Bank of Baroda is committed to providing high-quality services to its customers while continually
improving its processes. The bank’s quality policy focuses on customer satisfaction, operational
efficiency, and maintaining compliance with all regulatory standards. The policy is designed to ensure
that all banking operations meet customer expectations and deliver value through constant
innovation, training, and development. The bank regularly monitors and evaluates customer feedback
to improve service delivery and customer experience.

1.10 Product or Service Profile

Bank of Baroda offers a wide range of banking products and services tailored to meet the diverse
needs of individuals, businesses, and corporations. Some of the key products and services include:

• Retail Banking: Savings accounts, current accounts, personal loans, home loans, car loans,
educational loans, and credit cards.
• Corporate Banking: Working capital finance, project financing, trade finance, term loans, and
cash management services.
• Treasury Services: Foreign exchange, investments, government securities, and derivatives
trading.
• Wealth Management: Investment advisory, portfolio management, and mutual fund services.
• International Banking: NRI accounts, foreign exchange services, and remittance services.

1.11 Ownership Patterns

Bank of Baroda is a public sector bank owned by the Government of India, which holds a significant
portion of its equity. The remaining shares are publicly traded on the Bombay Stock Exchange (BSE)
and National Stock Exchange (NSE), and are owned by institutional investors, retail investors, and
other stakeholders. As a publicly listed entity, the bank is subject to regulations by the Reserve Bank
of India (RBI) and other regulatory bodies.

1.12 Competitors Information

Bank of Baroda competes with other large public sector banks such as State Bank of India (SBI),
Punjab National Bank (PNB), Union Bank of India, and Canara Bank. It also faces competition from
private sector banks like HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. The
competition is intense in terms of customer acquisition, product offerings, interest rates, digital
banking services, and customer experience.
1.13 Infrastructure Facilities

Bank of Baroda boasts a robust infrastructure, with over 9,500 branches across India and a significant
number of international branches in countries such as the United States, United Kingdom, Singapore,
and Canada. The bank has modernized its branches with technology-driven systems to offer a
seamless banking experience. In addition, the bank has implemented a comprehensive IT
infrastructure that supports its digital banking services, including mobile banking apps, internet
banking platforms, and ATM networks. Its head office is located in Vadodara, Gujarat, and the bank
also operates several regional offices and subsidiaries worldwide.

1.14 Achievement and Awards

Bank of Baroda has earned numerous accolades and awards for its exemplary performance in the
banking sector. The bank has bee

n recognized for its excellence in various categories, including customer service, innovation, and
financial inclusion. Some notable awards include:

• Best Bank in Customer Service: Recognized by industry bodies for its customer service
excellence.

• Best Use of Technology: Awarded for implementing cutting-edge banking technology to

• Financial Inclusion Award: Acknowledged for efforts in promoting financial inclusion in rural
and remote areas.

• Best Bank for Corporate Social Responsibility: Recognized for its initiatives in social welfare,
education, and healthcare.

Through these awards, Bank of Baroda continues to demonstrate its leadership and commitment to
excellence in the banking sector.