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Bank of Baroda

BSE Code : 532134 | NSE Symbol : BANKBARODA | ISIN:INE028A01039| SECTOR : Banks |

NSE BSE
 
SMC down arrow

70.55

-0.10 (-0.14%) Volume 280564

07-May-2021 EOD

Prev. Close

70.65

Open Price

71.10

Bid Price (QTY)

0.00(0)

Offer Price (QTY)

70.55(8156)

 

Today’s High/Low 71.70 - 69.85

52 wk High/Low 99.85 - 36.00

Key Stats

MARKET CAP (RS CR) 36483.96
P/E 15.3
BOOK VALUE (RS) 151.5390348
DIV (%) 0
MARKET LOT 1
EPS (TTM) 4.61
PRICE/BOOK 0.465556614459841
DIV YIELD.(%) 0
FACE VALUE (RS) 2
DELIVERABLES (%) 20.14
4

News & Announcements

28-Apr-2021

Bank of Baroda up for third straight session

19-Apr-2021

Bank of Baroda - Bank Of Baroda - Updates

15-Apr-2021

Bank of Baroda announces change in directorate

15-Apr-2021

Bank of Baroda - Announcement under Regulation 30 (LODR)-Change in Directorate

15-Apr-2021

Bank of Baroda announces change in directorate

09-Apr-2021

Bank of Baroda revises MCLRs

10-Mar-2021

Bank of Baroda reviews MCLR

03-Mar-2021

Bank of Baroda closes QIP issue on 2 Mar

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Allahabad Bank(Merged) 532480 ALBK
Andhra Bank(Merged) 532418 ANDHRABANK
Bank of India 532149 BANKINDIA
Bank of Maharashtra 532525 MAHABANK
Canara Bank 532483 CANBK
Central Bank of India 532885 CENTRALBK
Corporation Bank(Merged) 532179 CORPBANK
Dena Bank(Merged) 532121 DENABANK
Indian Bank 532814 INDIANB
Indian Overseas Bank 532388 IOB
Oriental Bank of Commerce(Merged 500315 ORIENTBANK
Punjab & Sind Bank 533295 PSB
Punjab National Bank 532461 PNB
State Bank of Bikaner and Jaipur(Merged) 501061 SBBJ
State Bank of India 500112 SBIN
State Bank of Mysore(Merged) 532200 MYSOREBANK
State Bank of Travancore(Merged) 532191 SBT
Syndicate Bank(Merged) 532276 SYNDIBANK
UCO Bank 532505 UCOBANK
Union Bank of India 532477 UNIONBANK
United Bank of India(Merged) 533171 UNITEDBNK
Vijaya Bank(Merged) 532401 VIJAYABANK

Share Holding

Category No. of shares Percentage
Total Foreign 373409499 7.22
Total Institutions 822090386 15.90
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 48352784 0.94
Total Promoters 3308184689 63.97
Total Public & others 619324821 11.97
Total 5171362179 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Bank of Baroda

Bank of Baroda is one of the leading commercial public sector banks in India. The Bank's solutions includes personal banking, which includes deposits, gen-next services, retail loans, credit cards, debit cards, services and lockers; business banking, which includes deposits, loans and advances, services and lockers; corporate banking, which includes wholesale banking, deposits, loans and advances and services, and international business, which includes non-resident Indian (NRI) services, foreign currency credits, ECB, offshore banking, export finance, import finance, correspondent banking, trade finance and international treasury. The Bank offers services, such as domestic operations and For-ex operations. They also offer rural banking services, which include deposits, priority sector advances, remittance, collection services, pension and lockers. They also offer fee-based services such as cash management and remittance services. The Bank is having their head office located at Baroda and their corporate office is located at Mumbai. Bank of Baroda is one of India's largest banks and as on December 2020, the bank has a strong domestic presence spanning 8,246 domestic branches and 11,553 ATMs & Cash Recyclers supported by self-service channels. The bank has a significant international presence with a network of 99 overseas branches/offices subsidiaries, spanning 21 countries. The bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.) and BOB Capital Markets. Bank of Baroda also has a joint venture for life insurance business with India First Life Insurance. The bank owns 98.57% in The Nainital Bank. The bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank. Bank of Baroda was incorporated on July 20, 1908 as a as a private bank with the name The Bank of Baroda Ltd. The Bank was established with a paid up capital of Rs 1 million and was founded by Maharaja Sayajirao III of Baroda. In the year 1910, the Bank opened their first branch in the city of Ahmedabad. In the year 1919, they opened their first branch in Mumbai City. In the year 1953, the Bank opened first international branch at Mombasa, Kenya. During the period 1953-1969, the Bank opened three branches in Fiji, five branches in Kenya, three branches in Uganda and one each in London and Guyana. In the year 1958, The Hind Bank merged with the Bank and in the year 1962, The New Citizen Bank Ltd amalgamated with the Bank. In the year 1964, The Umargaon Peoples' Bank & Tamilnadu Central Bank amalgamated with the Bank. In July 1969, the Bank was nationalized and the name was changed from 'The Bank of Baroda Ltd' to 'Bank of Baroda'. During the period 1969 to 1974, they established three branches in Mauritius, two branches in UK and one branch in Fiji. They entered in the oil rich Gulf countries in the year 1974 with two branches were opened in UAE, one at Dubai and another at Abu Dhabi. In the year 1976, the Bank sponsored the first of their 19 Regional Rural Banks thereby seeking to complement their operations in rural heartland. In the year 1977, they launched the 'Gram Vikas Kendra' (GVK), an innovative model for integrated rural development. In the year 1984, the Bank launched their Credit Card Operations. In the year 1988, The Traders Bank Ltd amalgamated with the Bank. In the year 1991, the Bank established their housing finance subsidiary, BOB Housing. They also established subsidiaries for businesses of credit cards (BOBCARDS), asset management (BOB AMC) and capital market activities (BOB Caps). In December 1996, the Bank entered the capital market with an Initial Public Offering. In the year 1997, they opened a branch in Durban. In the year 1999, the Bank commenced operations as a depository. Also, Bareilly Corporation Bank amalgamated with the Bank during the year. In the year 2000, the Bank appointed Arthur Andersen India Pvt Ltd as risk management consultant for setting up Comprehensive Risk Management Architecture for the Bank. In the year 2001, they established a separate Risk Management Department and specialized integrated treasury branch. In the year 2002, The Benares State Bank Ltd merged with the Bank. They launched Debit Card project in affiliation with VISA. In the year 2004, The South Gujarat Local Area Bank amalgamated with the Bank. In June 1, 2004, the Bank signed a MoU with National Insurance Company Ltd for selling their non life insurance products under corporate agency arrangement. During the year 2004-05, the Bank expanded their interconnected ATM network to cross 501, spread over 180 centres in the country. The bank also introduced 8AM to 8PM banking at 101 branches and 24-Hour banking at 5 branches in the country. They launched the IT Enabled Business Transformation Program and signed the contract with Hewlett Packard. They launched Multicity cheque facility. In the year 2006, the Bank established an Offshrore Banking Unit (OBU) in Singapore. They commissioned 464 new ATMs across the country taking the tally to 634 Nos. In the year 2007, the Bank identified Legal & General, the UK-based life insurance company as a partner for their life-insurance venture with initial capital of about Rs 200 crore. In April 2007, the Bank opened Gen-Next, the youth-oriented branch. In May 2007, they signed an agreement with Dun & Bradstreet (D&B) regarding assign ratings to the bank's small-scale industry (SSI) customers. In October 6, 2007, the Bank made a tie up with Pioneer Global Asset Management SpA, Italy for launching joint venture for asset management business (Baroda Pioneer Asset Management Company). The joint venture would first offer products of Indian origin and later bring international investment opportunities to the Indian market. They launched sale of Gold Coins during the year. During the year 2008-09, the Bank opened eight new Urban Retail Loan Factories (URLFs) at Powai Mumbai, Agra, Bareili, Bhopal, Nagpur, Ernakulam, Jodhpur, and Noida. They launched new loan products, namely Loan for Earnest Money Deposit, Baroda Additional Assured Advance to NRIs, Baroda Bachat Mitra, Baroda Car Loan to HNIs/ Corporates, Baroda Advance Against Gold ornaments/ Jewelry/Gold Coins and Special Home Loans package. During the year, the Bank signed a MoU with number of car manufacturing companies viz. Maruti Suzuki India Ltd, Tata Motors Ltd, Hyundai Motors India Ltd and Mahindra & Mahindra Ltd for boosting up Auto Loan portfolio. They made a tie up with Kotak Mahindra Old Mutual Life Insurance Ltd for providing Life Insurance Cover to Education Loan borrowers and Home Loan borrowers sanctioned under a special package. During the year, the Bank opened four new branches/offices, viz. Branch at Guangzhou (China), Electronic Banking Unit at Musaffah (UAE) and branches of the Subsidiaries at Kawempe (Uganda) and Nakuru (Kenya). In July 2008, they received the license from the China Banking Regulatory Commission (CBRC) for their full-fledged branch in Guanzhou City in the Guangdong Province. Also, the online home loan application facility was made available with tracking of status of the application from July 20, 2008. During the year 2009-10, the Bank opened 6 new Retail Loan Factories (RLFs) at Chandigarh, Gamdevi (MMSR), Patna, Coimbatore, Ranchi and Allahabad. They established three SME Loan Factories during the year. In June 22, 2009, the Bank launched a new business process reengineering and organizational restructuring project 'Navnirmaan- Baroda Next'. In September 2009, the Bank brought all the branches of the Bank on CBS platform to offer 'Anywhere Anytime' banking to all its customers. All the branches of the Bank have been enabled to provide e-banking services as well as electronic fund transfer facilities by way of real time gross settlement (RTGS) and National Exchange Fund Transfer (NEFT) to its customers. In October 10, 2009, the Bank launched a new subsidy linked housing loan scheme under the Bank's Home Loan Product styled as 'Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)'. In November 2009, the Bank entered into definitive agreement with T Rowe Price for proposed divestment of 6.50% stake in UTI Asset Management Company and UTI Trustee Company. In November 16, 2009, the Bank entered into life insurance business by forming a Joint Venture (JV) Life Insurance Company namely IndiaFirst Life Insurance Company Limited where Bank of Baroda holds 40% stake, together with Andhra Bank holding 30% and Legal & General Group holding 26%. Also, the Bank signed Corporate Agency Agreement with their joint venture company in life insurance, IndiaFirst Life Insurance Co Ltd, to market their life insurance products under wealth management services. In the year 2010, the Bank received a commercial banking license from Malaysia to a locally incorporated bank, namely India BIA Bank (Malaysia), to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The Bank opened a branch in Auckland, New Zealand, and also opened their tenth branch in the United Kingdom. In July 2010, the Bank signed an agreement with the Unique Identification Authority of India (UIDAI) to act as a registrar for the project. The bank will join the UIDAI in collecting biometric and demographic details of their customers as well as others. In August 2010, the Bank signed a Memorandum of Co-operation (MoC) with the Dubai Multi Commodities Centre Authority (DMCC), a free zone authority dedicated to enhancing trade flows through Dubai. The MoC is designed to provide value-added services to DMCC-registered companies and further enhance the proposition of operating in the Jumairah Lake Towers (JLT) Free Zone. Also, DMCC and the Bank will share knowledge through seminars, workshops and exchange of faculty. During the year 2010-11, the Bank opened seven new branches/offices (including the ones for its overseas subsidiaries). A branch was opened at Ilford, Essex (UK) and five Electronic Banking Service Units (EBSUs) in UAE at RAKIA, Ras Al Khaimah, Al Qusais, Dubai, Sh. Zayed Road, Dubai, Al Karama, Dubai and National Paints, Sharjah. The subsidiary in New Zealand, Bank of Baroda (New Zealand), commenced operations with the opening of branch at Auckland. During the year, the Bank launched a new Retail Asset Product styled as Baroda Traders Loan against the Security of Gold Ornaments/Jewelleries. They launched a Retail Asset scheme under Baroda Personal Loan styled as Baroda Loan to Retirees for Pension Option. Also, they introduced a new Term Deposit Product styled as Baroda Utsav Deposit Scheme for 444 days at the interest rate of 8.10% which was revised from time to time. During the year, the Bank opened a new Gen-next branch in NOIDA. Also, they opened five new Retail Loan Factories at Karol Bagh New Delhi, Raipur, Ludhiana and Nasik, whereas one existing RLF at Jodhpur was closed. In January 15, 2011, the Bank launched two new Retail Liability Products under Savings Bank Segment styled as Baroda Pensioners Savings Account and a Life Insurance linked Savings product styled as Baroda Jeevan Suraksha Savings Account under a tie-up arrangement with IndiaFirst Life Insurance Company. On 29 March 2011, Bank of Baroda allotted 2.72 crore equity shares at issue price of Rs 902.14 per share amounting to Rs 2461 crore on preferential basis to Government of India. On 29 February 2012, Bank of Baroda announced that Banco Bilbao Vizcaya Argentaria (BBVA) has informed the bank that it may not be able to proceed further with regard to a proposed joint venture regarding credit card business. Earlier, Bank of Baroda had entered into a Memorandum of Understanding (MOU) with BBVA for a joint venture regarding credit card business. 30 Mar 2012, Bank of Baroda informed the stock exchanges that the bank has allotted 1.95 crore equity shares at issue price of Rs 840.10 per share aggregating to Rs 1644.68 crore to Life Insurance Corporation of India on preferential basis. On 12 March 2013, the Allotment Committee of Bank Baroda issued and allotted 1.01 crore equity shares at issue price of Rs 838.85 per share aggregating to Rs 850 crore to Government of India (President of India) on preferential basis, as per SEBI Guidelines. On 18 January 2014, the Allotment Committee of Bank Baroda issued and allotted 81.58 lakh equity shares at issue price of Rs 674.12 per share aggregating to Rs 550 crore to Government of India on preferential basis. On 9 July 2014, Bank of Baroda announced that the bank acting through its London branch, has issued fixed rate Senior Unsecured Notes amounting to USD 250 million on 8 July 2014 under Regulation-S by way of tapping/re-opening of its Senior Unsecured Notes of USD 750 million originally issued on 23 January 2014 and maturing on 23 July 2019. The notes are issued to meet the present/future long term funding requirement at the overseas centres of the bank. The Board of Directors of Bank of Baroda at its meeting held on 27 September 2014 accorded an in-principle approval for the sub-division of one equity share of the face value of Rs 10 each into five equity shares of face value of Rs 2 each. On 31 March 2015, Bank of Baroda issued and allotted 6.44 crore equity shares at an issue price of Rs 195.59 per equity share amounting to Rs 1260 crore to Government of India on preferential basis. On 29 September 2015, Bank of Baroda issued and allotted 9.26 crore equity shares at an issue price of Rs 192.74 per equity share amounting to Rs 1786 crore to Government of India on preferential basis. On 25 July 2016, Bank of Baroda announced that the Reserve Bank of India has imposed a penalty of Rs 5 crore on the bank. The RBI carried out the investigation and noted the deficiencies, which were reflective of weaknesses and failures in internal control mechanisms in respect of certain AML provisions such as monitoring of transactions, timely reporting to FIU, and assigning of UCIC to customers. Bank of Baroda said in a statement that the bank has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur. On 15 October 2016, Bank of Baroda announced that the bank has initiated the process of raising funds through issuance of Basel III compliant AT-I (Additional Tier-I Capital) Bonds, i.e. Perpetual Debt Instrument, as per the regulatory definitions of the Reserve Banks of India of Rs 1000 crore with Green Shoe Option of Rs 1000 crore on private placement basis. On 3 May 2017, Bank of Baroda announced that the bank has elected to exercise its option to redeem all outstanding US$ 300 million Upper Tier-II Subordinated Notes (the Notes) on 25 May 2017. The Notes were issued by the bank acting through its London Branch on 24 May 2007 pursuant to the bank's US$ 3 billion Medium Term Note Programme (the MTN Programme) listed with Singapore Stock Exchange. On 23 November 2017, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with CGR Collateral Management Ltd with an objective to provide collateral management services to the borrowers who are availing the facility of loan against warehouse receipt through the network of Bank of Baroda branches across the country. CGR Collateral Management Ltd is engaged in providing warehouse management services relating to commodities and inventories and complete Agri business solutions to farmers. On 28 December 2017, Bank of Baroda announced that it has entered into an agreement with UniCredit S.p.A. to acquire their entire stake in Baroda Pioneer Asset Management Company, thus increasing its shareholding to 100%. Its foreign partner Pioneer Investments will exit the venture. The move comes on the back of the acquisition of Pioneer Investments by Amundi earlier this year. Amundi already has a presence in an Indian asset management company. On 18 January 2018, Bank of Baroda announced its on boarding on all 3 RBI approved Trade Receivables Discounting System (TReDS) platforms, thereby becoming the first bank to support this novel Fintech initiative by RBI. On 12 February 2018, Bank of Baroda announced that in line with the bank's strategic plan for rationalization of overseas branches, the bank is exiting from its operations in South Africa. The business of the bank in South Africa is not very significant and the exit will not have any major impact on the financials of the bank. On 14 February 2018, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with Small Farmers' Agribusiness Consortium (SFAC) as a preferred bank for the State of Maharashtra. The bank will play an active role in promoting quality investments in the agri business sector and provide collateral free loans to Farmers Producer Companies (FPCs) in Maharashtra under the Credit Guarantee Scheme of SFAC. SFAC is an autonomous society promoted by Ministry of Agriculture, Cooperation and Farmers' Welfare, Government of India which is pioneering inclusive growth of small and marginal farmers engaged in agribusiness activities. On 6 March 2018, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with National e-Repository Limited (NERL). The MoU with NERL will provide the bank an access to IT based ecosystem for management of life cycle of negotiable warehouse receipts (NWRs) in electronic form. On 27 March 2018, Bank of Baroda announced the issue and allotment of 34.13 crore shares at an issue price of Rs 157.46 per share amounting to Rs 5375 crore to Government of India on preferential basis. During FY 2019, the Bank opened 22 new rural and semi-urban branches. During the year 2019, Bank closed down its Offshore Banking Unit at Bahamas, wholesale banking unit in Bahrain, and surrendered banking license of subsidiary at Ghana which had three branches. Further, Muttrah branch at Oman was merged with the Greater Muttrah branch and Durban branch was merged with Johannesburg branch in South Africa. The rationalisation of operations based on the strategic review is continuing. During the year 2019, Bank has developed customised software for the e-LC solution for Ministry of Defence. Bank of Baroda is the only Public Sector Bank to launch e-KVP utility through banks. The Bank has integrated itself on the e-PCS portal of Indian Port Association for all the 3 major ports across India. An MOU with the Kandla Port has been signed. During the year 2019, the Bank opened 55 new domestic branches and closed/merged 10. Of the new branches, two were high-tech digital branches and 9 digital portable branches. In international operations, Bank opened an Offshore International Banking Unit (OIBU) in International Financial Service Centre (IFSC), GIFT City, Gandhinagar, Gujarat and closed its representative office in Bangkok, Thailand and one electronic banking service unit in UAE. In FY2019, Bank opened 3 new branches and established 5 loan-processing units named as Naini Loan Points (NLPs) at different locations. Bank installed 11 white label ATMs taking the total to 24 such ATMs and installed 772 POS machines. During the year 2019, Bank entered into an agreement with UniCredit S.P.A.(the parent company of Pioneer Global Asset Management SpA) to buy its 51% stake in the company, subject to regulatory approvals. Post completion of the transaction, the Bank will own 100% of the asset. During FY 2020, credit growth increased to Rs 6,90,121 crore within which domestic advances of the Bank amounted to Rs 5,70,341 crore. The increase in domestic advances was led by retail loans and agriculture loans. Retail loan increased to Rs 1,20,657 crore led by home and auto loans at Rs 83,012 crore and Rs 16,490 crore respectively. With this, the ratio of retail loans to total domestic loans increased to 19.8% during the year. The international loan book grew by 21.4% to Rs 1,19,731 crore as on 31 March 2020. The total assets of the Bank increased to Rs 11,57,915 crore as on 31 March 2020. During the FY2020,Vijaya Bank and Dena Bank were amalgamated with Bank of Baroda. In pursuant to the scheme of Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda, and based on the Swap Ratio agreed upon between the banks on 02 January 2019. The bank has allotted the following shares to the shareholders to the erstwhile Vijaya Bank and erstwhile Dena Bank on 01 April 2019. i. 52,42,00,772 fully paid up equity shares of face value of Rs. 2/- each of Bank of Baroda aggregating Rs 104,84,01,544/- be issued and allotted to equity shareholders of Vijaya Bank.ii. 24,84,51,166 fully paid up equity shares of face value of Rs. 2/- each of Bank of Baroda aggregating Rs 49,69,02,332/- be issued and allotted to equity shareholders of Dena Bank. After the allotment of the above shares the Shareholding of the Government of India (the promoter shareholder) increased from 63.26% (69.23% including Share Application money) to 71.60% as at on 31March 2020. The Bank entered into a MoU with Government of Gujarat for hassle free finance to MSME borrowers and to be the preferred Bank under the Government of Gujarat's portal for the new entrepreneurs in the identified industrial area. As on 31 March 2020, the bank's distribution network stood at 9,482 domestic branches, 101 overseas branches, 13193 ATMs & cash recyclers. During the FY2020, the Bank awarded 'National award for SHG bank linkage 2018-19 'by DAY-NRLM, Government at New Delhi. The Bank received 'The Excellence Award under Gold Category for outstanding performance in implementation of NBCFDC Loans in the public sector schemes 'on the occasion of 28th foundation day of NBCFDC. The Bank bagged Silver at SAMMIE 2019 - Best Social Media Brand Award (BFSI - banking category). The Bank secured 1st position and has been awarded Top Performer in New Accounts Opened under PSU Bank category, at NSDL Star Performer Awards 2019, at TajLands End, Mumbai. As on 31 December 2020, the bank has 7 domestic subsidiaries, 8 overseas subsidiaries, 3 joint ventures and 4 associate companies. In December 2020,the bank signed a Memorandum of Understanding (MoU) with Indian Navy and Indian Coast Guard and renewed its existing MoU with the Indian Army, to offer specially customized banking services through Baroda Military Salary Package', The Bank has made the same arrangement with Indian Air Force also, thereby covering all the four Armed Forces under Ministry of Defence. A similar package has been introduced by the Bank for the Central Armed Police Forces also. In January 2021,the bank signed a memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI) to support MSME enterprises with an online facility of submitting their loan restructuring proposal. The Govt. of India and RBI has come up with several measures to extend relief to MSMEs to tide over the present pressing times post pandemic COVID-19. Furthermore, RBI has extended the One-Time Restructuring (OTR) window till March 2021 to provide relief to MSMEs under financial stress, with credit exposure up to Rs. 25 crores. In this backdrop, Bank of Baroda has entered into MoU arrangement with SIDBI for a web-based platform namely Asset Restructuring Module for MSMEs (ARM-MSME)'.

Bank of Baroda Chairman Speech

Dear Stakeholder,

It gives me great pleasure to place before you the highlights of the Bank's performance during the financial year 2019-20 (FY 2020). This was the first year of the amalgamated entity after merger of Vijaya Bank and Dena Bank into Bank of Baroda. I am happy to say that the amalgamation process was completed smoothly without any disruption or inconvenience to the customers. Once the changeover of the technology platform is completed in the current financial year, the customers of all erstwhile banks will have seamless benefit of advanced level of bouquet of services.

FY2020 was the year in which the change of MD and CEO happened. Mr. P S Jayakumar completed his tenure of 4 years in the Bank successfully, leaving behind many innovative practices in the Bank. I would like to express the gratitude of the Board of Directors to him for steering the Bank through the amalgamation. I would also like to welcome new MD and CEO, Shri Sanjiv Chadha, who brings with him the rich experience of the largest Public Sector Bank - SBI. I am sure new milestones will be achieved during his tenure in our Bank.

The Banking Landscape

One of the important areas of reform for the Government has been increasing scale and size of the Indian banks. As part of this strategy, Vijaya Bank and Dena Bank were amalgamated with Bank of Baroda. Continuing with this strategy, the Government has announced consolidation of 10 PSBs into 4. This will be helpful in strengthening balance sheet and underlying profitability to invest in technology to gain market share. Large banks will also be in a better position to raise capital from the equity and bond markets.

Other than amalgamation, the Government has implemented a number of reforms to increase India's growth. Notable among them are reduction in corporate tax rate, GST, Insolvency and Bankruptcy Code (IBC), opening up of mining sector to private sector, proposed privatisation of power distribution in Union Territories, investment in infrastructure and focus on Ease of Doing Business.

The benefit of these reform measures would be visible in the medium-term. However, due to cyclical factors, growth slowed down in FY 2020 which resulted in deceleration in credit growth of SCBs to 6.1% towards end of financial year from 13.1% in the previous financial year. The lower growth can also be partly attributed to outbreak of COVID-19 at the end of the year.

The Reserve Bank of India reduced policy rate by 250bps since February 2019 to support the economy. It also introduced an external benchmark linked lending rate for retail and MSME customers to ensure faster transmission. RBI has also taken steps to mitigate the impact of the slowdown due to COVID-19 by injecting liquidity, reducing CRR and advising banks to provide 6-month moratorium to borrowers. Bank of Baroda too has extended moratorium to its customers and has ensured continuous operation of banking services during the COVID-19 outbreak in the country. I would like to salute all officers and staff of the Bank who continued banking operations during lockdown also. They too are the frontline warriors of the war against COVID-19.

Bank of Baroda - The Continuing Transformation

We at Bank of Baroda have been investing in technology to improve customer experience. Initiativessuch as digitising account opening through TAB Banking, revamping our mobile application, centralisation of back office operations, setting up an Analytics Centre of Excellence (ACoE) and Baroda Kisan platform for our farmers are efforts in that direction. We are expanding our digital focus even further with setting up of a dedicated Digital Lending Department which will exclusively cater to digital on-boarding and processing of loans for Retail and MSME customers using internal and external sources of information and state-of-the-art machine learning and algorithms. These initiatives have already resulted in lower turnaround time and better customer experience. Our revamped mobile application is rated amongst the top 3 large banks in the country. Bank of Baroda has been ranked 2nd in Government's EASE ranking.

Financial Performance

The benefits from amalgamation of the three Banks are visible in the first year itself in the form of cost efficiency through reduction in cost to income ratio to 47.86% in FY 2020, improvement in margins through increase in CASA ratio to 39.07% and better credit quality in the form of decline in nonperforming loans to 3.13%. The combined entity has not only reported a much higher operating profit, but also returned to positive profit in FY 2020. This is despite the Bank increasing its provision coverage ratio to 81.33% in the financial year. The Bank also raised capital by way of AT-1 and Tier II bonds of Rs 6,817 crore. The results of the Bank show that Government's reform initiative is in the right direction of creating stronger banks which can invest in technology, have higher profits and raise capital from the markets leading to deeper capital cushion.

Looking Ahead

The Board of Directors of our Bank is continuously engaged with the management to set up business goals which benefit all the stakeholders including the shareholders. Our strategy this year will be to consolidate the gains of amalgamation and achieve better efficiency parameters while delivering healthy growth in credit and profitability. Also, we are conscious of the fact that the way we do business has to change in the post COVID world. We plan to strategise on these lines so that the adversity is converted into an opportunity. As the Chairman of the Bank, I am excited to be part of this journey.

Hasmukh Adhia

Chairman

   

Bank of Baroda Company History

Bank of Baroda is one of the leading commercial public sector banks in India. The Bank's solutions includes personal banking, which includes deposits, gen-next services, retail loans, credit cards, debit cards, services and lockers; business banking, which includes deposits, loans and advances, services and lockers; corporate banking, which includes wholesale banking, deposits, loans and advances and services, and international business, which includes non-resident Indian (NRI) services, foreign currency credits, ECB, offshore banking, export finance, import finance, correspondent banking, trade finance and international treasury. The Bank offers services, such as domestic operations and For-ex operations. They also offer rural banking services, which include deposits, priority sector advances, remittance, collection services, pension and lockers. They also offer fee-based services such as cash management and remittance services. The Bank is having their head office located at Baroda and their corporate office is located at Mumbai. Bank of Baroda is one of India's largest banks and as on December 2020, the bank has a strong domestic presence spanning 8,246 domestic branches and 11,553 ATMs & Cash Recyclers supported by self-service channels. The bank has a significant international presence with a network of 99 overseas branches/offices subsidiaries, spanning 21 countries. The bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.) and BOB Capital Markets. Bank of Baroda also has a joint venture for life insurance business with India First Life Insurance. The bank owns 98.57% in The Nainital Bank. The bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank. Bank of Baroda was incorporated on July 20, 1908 as a as a private bank with the name The Bank of Baroda Ltd. The Bank was established with a paid up capital of Rs 1 million and was founded by Maharaja Sayajirao III of Baroda. In the year 1910, the Bank opened their first branch in the city of Ahmedabad. In the year 1919, they opened their first branch in Mumbai City. In the year 1953, the Bank opened first international branch at Mombasa, Kenya. During the period 1953-1969, the Bank opened three branches in Fiji, five branches in Kenya, three branches in Uganda and one each in London and Guyana. In the year 1958, The Hind Bank merged with the Bank and in the year 1962, The New Citizen Bank Ltd amalgamated with the Bank. In the year 1964, The Umargaon Peoples' Bank & Tamilnadu Central Bank amalgamated with the Bank. In July 1969, the Bank was nationalized and the name was changed from 'The Bank of Baroda Ltd' to 'Bank of Baroda'. During the period 1969 to 1974, they established three branches in Mauritius, two branches in UK and one branch in Fiji. They entered in the oil rich Gulf countries in the year 1974 with two branches were opened in UAE, one at Dubai and another at Abu Dhabi. In the year 1976, the Bank sponsored the first of their 19 Regional Rural Banks thereby seeking to complement their operations in rural heartland. In the year 1977, they launched the 'Gram Vikas Kendra' (GVK), an innovative model for integrated rural development. In the year 1984, the Bank launched their Credit Card Operations. In the year 1988, The Traders Bank Ltd amalgamated with the Bank. In the year 1991, the Bank established their housing finance subsidiary, BOB Housing. They also established subsidiaries for businesses of credit cards (BOBCARDS), asset management (BOB AMC) and capital market activities (BOB Caps). In December 1996, the Bank entered the capital market with an Initial Public Offering. In the year 1997, they opened a branch in Durban. In the year 1999, the Bank commenced operations as a depository. Also, Bareilly Corporation Bank amalgamated with the Bank during the year. In the year 2000, the Bank appointed Arthur Andersen India Pvt Ltd as risk management consultant for setting up Comprehensive Risk Management Architecture for the Bank. In the year 2001, they established a separate Risk Management Department and specialized integrated treasury branch. In the year 2002, The Benares State Bank Ltd merged with the Bank. They launched Debit Card project in affiliation with VISA. In the year 2004, The South Gujarat Local Area Bank amalgamated with the Bank. In June 1, 2004, the Bank signed a MoU with National Insurance Company Ltd for selling their non life insurance products under corporate agency arrangement. During the year 2004-05, the Bank expanded their interconnected ATM network to cross 501, spread over 180 centres in the country. The bank also introduced 8AM to 8PM banking at 101 branches and 24-Hour banking at 5 branches in the country. They launched the IT Enabled Business Transformation Program and signed the contract with Hewlett Packard. They launched Multicity cheque facility. In the year 2006, the Bank established an Offshrore Banking Unit (OBU) in Singapore. They commissioned 464 new ATMs across the country taking the tally to 634 Nos. In the year 2007, the Bank identified Legal & General, the UK-based life insurance company as a partner for their life-insurance venture with initial capital of about Rs 200 crore. In April 2007, the Bank opened Gen-Next, the youth-oriented branch. In May 2007, they signed an agreement with Dun & Bradstreet (D&B) regarding assign ratings to the bank's small-scale industry (SSI) customers. In October 6, 2007, the Bank made a tie up with Pioneer Global Asset Management SpA, Italy for launching joint venture for asset management business (Baroda Pioneer Asset Management Company). The joint venture would first offer products of Indian origin and later bring international investment opportunities to the Indian market. They launched sale of Gold Coins during the year. During the year 2008-09, the Bank opened eight new Urban Retail Loan Factories (URLFs) at Powai Mumbai, Agra, Bareili, Bhopal, Nagpur, Ernakulam, Jodhpur, and Noida. They launched new loan products, namely Loan for Earnest Money Deposit, Baroda Additional Assured Advance to NRIs, Baroda Bachat Mitra, Baroda Car Loan to HNIs/ Corporates, Baroda Advance Against Gold ornaments/ Jewelry/Gold Coins and Special Home Loans package. During the year, the Bank signed a MoU with number of car manufacturing companies viz. Maruti Suzuki India Ltd, Tata Motors Ltd, Hyundai Motors India Ltd and Mahindra & Mahindra Ltd for boosting up Auto Loan portfolio. They made a tie up with Kotak Mahindra Old Mutual Life Insurance Ltd for providing Life Insurance Cover to Education Loan borrowers and Home Loan borrowers sanctioned under a special package. During the year, the Bank opened four new branches/offices, viz. Branch at Guangzhou (China), Electronic Banking Unit at Musaffah (UAE) and branches of the Subsidiaries at Kawempe (Uganda) and Nakuru (Kenya). In July 2008, they received the license from the China Banking Regulatory Commission (CBRC) for their full-fledged branch in Guanzhou City in the Guangdong Province. Also, the online home loan application facility was made available with tracking of status of the application from July 20, 2008. During the year 2009-10, the Bank opened 6 new Retail Loan Factories (RLFs) at Chandigarh, Gamdevi (MMSR), Patna, Coimbatore, Ranchi and Allahabad. They established three SME Loan Factories during the year. In June 22, 2009, the Bank launched a new business process reengineering and organizational restructuring project 'Navnirmaan- Baroda Next'. In September 2009, the Bank brought all the branches of the Bank on CBS platform to offer 'Anywhere Anytime' banking to all its customers. All the branches of the Bank have been enabled to provide e-banking services as well as electronic fund transfer facilities by way of real time gross settlement (RTGS) and National Exchange Fund Transfer (NEFT) to its customers. In October 10, 2009, the Bank launched a new subsidy linked housing loan scheme under the Bank's Home Loan Product styled as 'Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)'. In November 2009, the Bank entered into definitive agreement with T Rowe Price for proposed divestment of 6.50% stake in UTI Asset Management Company and UTI Trustee Company. In November 16, 2009, the Bank entered into life insurance business by forming a Joint Venture (JV) Life Insurance Company namely IndiaFirst Life Insurance Company Limited where Bank of Baroda holds 40% stake, together with Andhra Bank holding 30% and Legal & General Group holding 26%. Also, the Bank signed Corporate Agency Agreement with their joint venture company in life insurance, IndiaFirst Life Insurance Co Ltd, to market their life insurance products under wealth management services. In the year 2010, the Bank received a commercial banking license from Malaysia to a locally incorporated bank, namely India BIA Bank (Malaysia), to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The Bank opened a branch in Auckland, New Zealand, and also opened their tenth branch in the United Kingdom. In July 2010, the Bank signed an agreement with the Unique Identification Authority of India (UIDAI) to act as a registrar for the project. The bank will join the UIDAI in collecting biometric and demographic details of their customers as well as others. In August 2010, the Bank signed a Memorandum of Co-operation (MoC) with the Dubai Multi Commodities Centre Authority (DMCC), a free zone authority dedicated to enhancing trade flows through Dubai. The MoC is designed to provide value-added services to DMCC-registered companies and further enhance the proposition of operating in the Jumairah Lake Towers (JLT) Free Zone. Also, DMCC and the Bank will share knowledge through seminars, workshops and exchange of faculty. During the year 2010-11, the Bank opened seven new branches/offices (including the ones for its overseas subsidiaries). A branch was opened at Ilford, Essex (UK) and five Electronic Banking Service Units (EBSUs) in UAE at RAKIA, Ras Al Khaimah, Al Qusais, Dubai, Sh. Zayed Road, Dubai, Al Karama, Dubai and National Paints, Sharjah. The subsidiary in New Zealand, Bank of Baroda (New Zealand), commenced operations with the opening of branch at Auckland. During the year, the Bank launched a new Retail Asset Product styled as Baroda Traders Loan against the Security of Gold Ornaments/Jewelleries. They launched a Retail Asset scheme under Baroda Personal Loan styled as Baroda Loan to Retirees for Pension Option. Also, they introduced a new Term Deposit Product styled as Baroda Utsav Deposit Scheme for 444 days at the interest rate of 8.10% which was revised from time to time. During the year, the Bank opened a new Gen-next branch in NOIDA. Also, they opened five new Retail Loan Factories at Karol Bagh New Delhi, Raipur, Ludhiana and Nasik, whereas one existing RLF at Jodhpur was closed. In January 15, 2011, the Bank launched two new Retail Liability Products under Savings Bank Segment styled as Baroda Pensioners Savings Account and a Life Insurance linked Savings product styled as Baroda Jeevan Suraksha Savings Account under a tie-up arrangement with IndiaFirst Life Insurance Company. On 29 March 2011, Bank of Baroda allotted 2.72 crore equity shares at issue price of Rs 902.14 per share amounting to Rs 2461 crore on preferential basis to Government of India. On 29 February 2012, Bank of Baroda announced that Banco Bilbao Vizcaya Argentaria (BBVA) has informed the bank that it may not be able to proceed further with regard to a proposed joint venture regarding credit card business. Earlier, Bank of Baroda had entered into a Memorandum of Understanding (MOU) with BBVA for a joint venture regarding credit card business. 30 Mar 2012, Bank of Baroda informed the stock exchanges that the bank has allotted 1.95 crore equity shares at issue price of Rs 840.10 per share aggregating to Rs 1644.68 crore to Life Insurance Corporation of India on preferential basis. On 12 March 2013, the Allotment Committee of Bank Baroda issued and allotted 1.01 crore equity shares at issue price of Rs 838.85 per share aggregating to Rs 850 crore to Government of India (President of India) on preferential basis, as per SEBI Guidelines. On 18 January 2014, the Allotment Committee of Bank Baroda issued and allotted 81.58 lakh equity shares at issue price of Rs 674.12 per share aggregating to Rs 550 crore to Government of India on preferential basis. On 9 July 2014, Bank of Baroda announced that the bank acting through its London branch, has issued fixed rate Senior Unsecured Notes amounting to USD 250 million on 8 July 2014 under Regulation-S by way of tapping/re-opening of its Senior Unsecured Notes of USD 750 million originally issued on 23 January 2014 and maturing on 23 July 2019. The notes are issued to meet the present/future long term funding requirement at the overseas centres of the bank. The Board of Directors of Bank of Baroda at its meeting held on 27 September 2014 accorded an in-principle approval for the sub-division of one equity share of the face value of Rs 10 each into five equity shares of face value of Rs 2 each. On 31 March 2015, Bank of Baroda issued and allotted 6.44 crore equity shares at an issue price of Rs 195.59 per equity share amounting to Rs 1260 crore to Government of India on preferential basis. On 29 September 2015, Bank of Baroda issued and allotted 9.26 crore equity shares at an issue price of Rs 192.74 per equity share amounting to Rs 1786 crore to Government of India on preferential basis. On 25 July 2016, Bank of Baroda announced that the Reserve Bank of India has imposed a penalty of Rs 5 crore on the bank. The RBI carried out the investigation and noted the deficiencies, which were reflective of weaknesses and failures in internal control mechanisms in respect of certain AML provisions such as monitoring of transactions, timely reporting to FIU, and assigning of UCIC to customers. Bank of Baroda said in a statement that the bank has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur. On 15 October 2016, Bank of Baroda announced that the bank has initiated the process of raising funds through issuance of Basel III compliant AT-I (Additional Tier-I Capital) Bonds, i.e. Perpetual Debt Instrument, as per the regulatory definitions of the Reserve Banks of India of Rs 1000 crore with Green Shoe Option of Rs 1000 crore on private placement basis. On 3 May 2017, Bank of Baroda announced that the bank has elected to exercise its option to redeem all outstanding US$ 300 million Upper Tier-II Subordinated Notes (the Notes) on 25 May 2017. The Notes were issued by the bank acting through its London Branch on 24 May 2007 pursuant to the bank's US$ 3 billion Medium Term Note Programme (the MTN Programme) listed with Singapore Stock Exchange. On 23 November 2017, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with CGR Collateral Management Ltd with an objective to provide collateral management services to the borrowers who are availing the facility of loan against warehouse receipt through the network of Bank of Baroda branches across the country. CGR Collateral Management Ltd is engaged in providing warehouse management services relating to commodities and inventories and complete Agri business solutions to farmers. On 28 December 2017, Bank of Baroda announced that it has entered into an agreement with UniCredit S.p.A. to acquire their entire stake in Baroda Pioneer Asset Management Company, thus increasing its shareholding to 100%. Its foreign partner Pioneer Investments will exit the venture. The move comes on the back of the acquisition of Pioneer Investments by Amundi earlier this year. Amundi already has a presence in an Indian asset management company. On 18 January 2018, Bank of Baroda announced its on boarding on all 3 RBI approved Trade Receivables Discounting System (TReDS) platforms, thereby becoming the first bank to support this novel Fintech initiative by RBI. On 12 February 2018, Bank of Baroda announced that in line with the bank's strategic plan for rationalization of overseas branches, the bank is exiting from its operations in South Africa. The business of the bank in South Africa is not very significant and the exit will not have any major impact on the financials of the bank. On 14 February 2018, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with Small Farmers' Agribusiness Consortium (SFAC) as a preferred bank for the State of Maharashtra. The bank will play an active role in promoting quality investments in the agri business sector and provide collateral free loans to Farmers Producer Companies (FPCs) in Maharashtra under the Credit Guarantee Scheme of SFAC. SFAC is an autonomous society promoted by Ministry of Agriculture, Cooperation and Farmers' Welfare, Government of India which is pioneering inclusive growth of small and marginal farmers engaged in agribusiness activities. On 6 March 2018, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with National e-Repository Limited (NERL). The MoU with NERL will provide the bank an access to IT based ecosystem for management of life cycle of negotiable warehouse receipts (NWRs) in electronic form. On 27 March 2018, Bank of Baroda announced the issue and allotment of 34.13 crore shares at an issue price of Rs 157.46 per share amounting to Rs 5375 crore to Government of India on preferential basis. During FY 2019, the Bank opened 22 new rural and semi-urban branches. During the year 2019, Bank closed down its Offshore Banking Unit at Bahamas, wholesale banking unit in Bahrain, and surrendered banking license of subsidiary at Ghana which had three branches. Further, Muttrah branch at Oman was merged with the Greater Muttrah branch and Durban branch was merged with Johannesburg branch in South Africa. The rationalisation of operations based on the strategic review is continuing. During the year 2019, Bank has developed customised software for the e-LC solution for Ministry of Defence. Bank of Baroda is the only Public Sector Bank to launch e-KVP utility through banks. The Bank has integrated itself on the e-PCS portal of Indian Port Association for all the 3 major ports across India. An MOU with the Kandla Port has been signed. During the year 2019, the Bank opened 55 new domestic branches and closed/merged 10. Of the new branches, two were high-tech digital branches and 9 digital portable branches. In international operations, Bank opened an Offshore International Banking Unit (OIBU) in International Financial Service Centre (IFSC), GIFT City, Gandhinagar, Gujarat and closed its representative office in Bangkok, Thailand and one electronic banking service unit in UAE. In FY2019, Bank opened 3 new branches and established 5 loan-processing units named as Naini Loan Points (NLPs) at different locations. Bank installed 11 white label ATMs taking the total to 24 such ATMs and installed 772 POS machines. During the year 2019, Bank entered into an agreement with UniCredit S.P.A.(the parent company of Pioneer Global Asset Management SpA) to buy its 51% stake in the company, subject to regulatory approvals. Post completion of the transaction, the Bank will own 100% of the asset. During FY 2020, credit growth increased to Rs 6,90,121 crore within which domestic advances of the Bank amounted to Rs 5,70,341 crore. The increase in domestic advances was led by retail loans and agriculture loans. Retail loan increased to Rs 1,20,657 crore led by home and auto loans at Rs 83,012 crore and Rs 16,490 crore respectively. With this, the ratio of retail loans to total domestic loans increased to 19.8% during the year. The international loan book grew by 21.4% to Rs 1,19,731 crore as on 31 March 2020. The total assets of the Bank increased to Rs 11,57,915 crore as on 31 March 2020. During the FY2020,Vijaya Bank and Dena Bank were amalgamated with Bank of Baroda. In pursuant to the scheme of Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda, and based on the Swap Ratio agreed upon between the banks on 02 January 2019. The bank has allotted the following shares to the shareholders to the erstwhile Vijaya Bank and erstwhile Dena Bank on 01 April 2019. i. 52,42,00,772 fully paid up equity shares of face value of Rs. 2/- each of Bank of Baroda aggregating Rs 104,84,01,544/- be issued and allotted to equity shareholders of Vijaya Bank.ii. 24,84,51,166 fully paid up equity shares of face value of Rs. 2/- each of Bank of Baroda aggregating Rs 49,69,02,332/- be issued and allotted to equity shareholders of Dena Bank. After the allotment of the above shares the Shareholding of the Government of India (the promoter shareholder) increased from 63.26% (69.23% including Share Application money) to 71.60% as at on 31March 2020. The Bank entered into a MoU with Government of Gujarat for hassle free finance to MSME borrowers and to be the preferred Bank under the Government of Gujarat's portal for the new entrepreneurs in the identified industrial area. As on 31 March 2020, the bank's distribution network stood at 9,482 domestic branches, 101 overseas branches, 13193 ATMs & cash recyclers. During the FY2020, the Bank awarded 'National award for SHG bank linkage 2018-19 'by DAY-NRLM, Government at New Delhi. The Bank received 'The Excellence Award under Gold Category for outstanding performance in implementation of NBCFDC Loans in the public sector schemes 'on the occasion of 28th foundation day of NBCFDC. The Bank bagged Silver at SAMMIE 2019 - Best Social Media Brand Award (BFSI - banking category). The Bank secured 1st position and has been awarded Top Performer in New Accounts Opened under PSU Bank category, at NSDL Star Performer Awards 2019, at TajLands End, Mumbai. As on 31 December 2020, the bank has 7 domestic subsidiaries, 8 overseas subsidiaries, 3 joint ventures and 4 associate companies. In December 2020,the bank signed a Memorandum of Understanding (MoU) with Indian Navy and Indian Coast Guard and renewed its existing MoU with the Indian Army, to offer specially customized banking services through Baroda Military Salary Package', The Bank has made the same arrangement with Indian Air Force also, thereby covering all the four Armed Forces under Ministry of Defence. A similar package has been introduced by the Bank for the Central Armed Police Forces also. In January 2021,the bank signed a memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI) to support MSME enterprises with an online facility of submitting their loan restructuring proposal. The Govt. of India and RBI has come up with several measures to extend relief to MSMEs to tide over the present pressing times post pandemic COVID-19. Furthermore, RBI has extended the One-Time Restructuring (OTR) window till March 2021 to provide relief to MSMEs under financial stress, with credit exposure up to Rs. 25 crores. In this backdrop, Bank of Baroda has entered into MoU arrangement with SIDBI for a web-based platform namely Asset Restructuring Module for MSMEs (ARM-MSME)'.

Bank of Baroda Directors Reports

Your Directors have pleasure in presenting the One Hundred and Twelfth Annual Report of the Bank with the audited Balance Sheet, Profit & Loss Account and the Report on Business and Operations for the year ended March 31,2020 (FY 2020).

Financial Performance

Rs crore

Particulars 31.03.19* 31.03.20
Deposits 6,38,689.7 9,45,984.4
of which- Domestic Deposits 5,17,966.6 8,08,705.5
International Deposits 1,20,723.2 1,37,278.9
Domestic Deposits 5,17,966.6 8,08,705.5
of which- Current Account Deposits 34,327.6 49,650.1
Savings Bank Deposits 1,74,076.2 2,66,301.3
CASA Deposits 2,08,403.8 3,15,951.4
Domestic CASA to Domestic Deposits (%) 40.2 39.1
Advances 4,68,818.7 6,90,120.7
of which- Domestic Advances 3,70,185.0 5,70,340.8
International Advances 98,633.8 1,19,780.0
Total Assets 7,80,987.4 11,57,915.5
Net Interest Income (NII) 18,683.8 27,451.3
Other Income 6,294.5 10,317.3
of which-Fee Income 3,576.1 4,951.0
Forex Income 693.2 1,016.1
Trading Gains 989.5 2,750.7
Recovery from PWO 832.0 1,531.8
Non-customer interest income 204.0 67.0
NII + Other Income 24,774.7 37,768.6
Operating Expenses 11,288.0 18,077.2
Operating Profit 13,486.8 19,691.4
Provisions 12,788.7 21,493.5
of which- Provisions for NPAs and Bad debts written off 12,192.40 16,404.9
Profit Before Tax 698.2 -1,802.1
Provision for Tax 264.6 -2,348.3
Net Profit 433.5 546.2
Appropriations/Transfers
Statutory Reserve 108.4 145.9
Capital Reserve 210.4 822.2
Revenue and Other Reserves

 

I) General Reserve 0 -560.3
II) Special Reserve u/s 36 (I) (viii) of the Income Tax Act 1961 182.1 180.0
III) Investment Reserve Account -41.6
Proposed Dividend 0 0

*Figures are related to standalone Bank of Baroda financial results for pre- amalgamation period, hence not comparable with post amalgamation financial results for the year ended March 31,2020

Key Performance Indicators 31.03.19* 31.03.20
Average Cost of Funds (%) 4.83 5.11
Average Yield (%) 7.28 7.55
Average Interest Earning Assets 6,86,743.0 10,07,058.7
Average Interest Bearing Liabilities 6,48,495.6 9,49,179.9
Net Interest Margin (%) 2.72 2.72
Cost-Income Ratio (%) 45.56 47.86
Return on Average Assets (ROAA) (%) 0.06 0.06
Return on Equity (%) 1.18 1.23
Book Value per Share (') 138.42 96.22
Basic EPS (Rs) 1.64 1.36

Total deposits of the Bank increased to Rs 9,45,985 crore as on March 31, 2020. Advances increased to Rs 6,90,121 crore led by international loans and domestic retail loans. The net interest margin (NIM) was stable at 2.72% in FY 2020. The Bank posted an operating profit of Rs 1 9,691 crore. Total provisions (other than tax) and contingencies was Rs 21,493 and provisions for NPAs were Rs 1 6,405 crore. The Bank posted a net profit of Rs 546 crore.

Capital Adequacy Ratio (CAR)

Ratios in %

31.03. 19* 31.03.20
Capital Adequacy Ratio - Basel III 13.42 13.30
CET-I 10.38 9.44
Tier - I 11.55 10.71
Tier - II 1.87 2.59

The Capital Adequacy Ratio (CAR) and CET-1 of the Bank stood at 13.30% and 9.44% respectively as on March 31, 2020. The consolidated group capital adequacy ratio was 13.87%.

The Bank's net worth as of March 31, 2020 was Rs 44,457 crore comprising of paid-up equity capital of Rs 925 crore and reserves of Rs 43,532 crore (excluding revaluation reserves, foreign currency translation reserves and other intangible assets). The book value of the share (FV Rs 2) was Rs 96.22 as on 31.03.2020.

Dividend

Reserve Bank of India (RBI) Vide notification RBI/2019-20/218 DOR.BPBC.No.64/21.02.067/2019-20 dated April 17, 2020 has advised banks, due to heightened uncertainty caused by COVID-19, to conserve capital, retain their capacity, support the economy and absorb losses. Accordingly, Bank has not declared dividend pay outs from the profits pertaining to the financial year ended March 31,2020.

Management Discussion and Analysis Global Economy

Growth in the global economy slowed down to 2.9% in Calendar Year (CY) 2019 compared with 3.6% in CY 2018. With the ongoing COVID-19 pandemic, global GDP growth is expected to contract sharply by 4.5% in CY 2020 as per latest estimates by IMF The sluggishness in GDP growth was driven by contraction in world trade volume from 3.8% in CY 2018 to 0.9% in CY 2019 as trade and tariff wars disrupted global value chains. This in turn impacted global manufacturing activity and investments. Apart from this, higher interest rates, Brexit and waning effects of US fiscal stimulus also contributed to the moderation in growth. Further, global commodity prices also fell by 10.2% in CY 2019 after increasing by 29.4% in CY 2018.

According to IMF, growth slowdown was more pronounced in Emerging Market and Developing Economies (EMDEs) from 4.5% in CY 2018 to 3.7% in CY 2019 led by India and China. Advanced Economies (AEs) too slowed down to 1.7% versus 2.2% in CY 2019 led by Germany and US. In Germany, growth slowed down to 0.6% in CY 2019 from 1.5% in CY 2018 due to the disruptions in the auto industry resulting from new emission standards in the Euro Area.

Indian Economy

India's FY 2020 growth slipped to 4.2% from 6.1% in FY 2019, its lowest since FY 2009. The decline was led by investment demand at (-) 2.8% from an increase of 9.8%. Even consumption slipped to 5.3% in FY 2020 from 7.2% in FY 2019. Government spending maintained its momentum during the year. From a sectoral perspective, agriculture sector was the only one which stood out in the year and supported rural consumption and demand. Even this year, monsoon is expected to be normal which should support the rural economy.

Industrial activity was relatively subdued in FY 2020 and increased by only 0.9% compared with an increase of 4.6% in FY 2019. The dip in industrial activity was led by manufacturing sector which registered an increase of only 0.1% in FY 2020. Services activity was also muted and increased by 5.5% compared with an increase of 7.7% in FY 2019. Growth slipped in Q4 FY 2020 on the back of domestic and global disruptions on account of measures taken to restrict the spread of COVID-19.

While growth came off, CPI inflation edged up to 4.8% in FY 2020 from 3.4% in FY 2019. This was on account of higher food inflation. Food inflation build-up was visible in H2 FY 2020 at 10.9% compared with (-) 1.5% in H2 FY 2019. Unusual supply disruption due to weather and higher vegetable prices were responsible for increase in food inflation. Core inflation, however moderated to 4% in FY 2020 compared with 5.8% in FY 2019, especially on account of muted oil prices and slowdown in demand.

While this year is expected to be challenging due to disruptions caused by COVID-19, rural consumption may remain buoyant due to higher output and increase in Minimum Support Prices. Migration from urban to rural areas and higher government spending on Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) imply rural demand will be higher in the year. The government along with RBI has announced a monetary and fiscal package of Rs 21 lakh crore to mitigate the impact on the economy.

Developments in Indian Banking

Credit growth of Scheduled Commercial Banks (SCBs) declined to a multiyear low of 6.1% in FY 2020 from 13.2% in FY 2019. While retail loans continued to remain buoyant, growth in agriculture, MSME and corporate sector declined due to a fall in demand as seen in lower GDP growth. However, deposit growth continued to show traction at 7.9% YoY in FY 2020. Besides subdued credit growth, the banking sector saw some semblance of improvement in asset quality triggered by effective resolution of some accounts under IBC and improved capital position due to recapitalisation of Public Sector Banks (PSBs).

In view of relatively muted economic momentum, RBI reduced policy repo rate by 135bps between February 2019 and October 2019. It was followed by another 115bps rate cut in February and March 2020. In order to improve interest rate transmission to real economy, RBI introduced external benchmark system from October 1, 2019 for pricing of new retail loans which was extended to MSME loans on April 1, 2020.

Along with rate reduction, RBI announced significant measures to support the economy. First, it advised that banks may extend a three month moratorium to customers on account of impact of COVID-19. This was further extended by another three months. However, banks would have to provide additional provision of 10% on the accounts claiming benefit of standstill clause which otherwise would have been declared NPA. Second, it gave banks the flexibility to extend working capital loans to borrowers by increasing drawing power. Third, RBI provided credit lines to NABARD, SIDBI, NHB, EXIM Bank and SCBs to ensure there is enough transmission of liquidity to RRBs, mutual funds and HFCs/NBFCs. Fourth, it infused durable liquidity by way of long term repos, targeted long term repos and Open Market Operations (OMOs.) As a result, liquidity surplus of SCBs increased to an average of Rs 1 .8 lakh crore in FY 2020 compared with a deficit of Rs 1 .2 lakh crore in FY 2019.

The cumulative impact of RBI's liquidity infusion in the banking system led to 65bps decline in median lending rates and 47bps decline in median term deposit rates. Long-end (10 year) sovereign bond yield fell sharply by 121bps in FY 2020.

Government of India too announced a series of reform measures for the banking sector. First, the number of PSBs has been reduced to 12 by way of merger of 10 PSBs into 4 large PSBs. Second, Government also recapitalised PSBs in FY 2020 with a total capital injection of Rs 65,443 crore. Bank of Baroda too received capital of Rs 7,000 crore. Third, corporate tax rate was reduced for all corporate entities including banks. Fourth, Government announced Rs 21 lakh crore package for the economy which included a package of Rs 3 lakh crore for onward lending to MSME sector.

Synergies derived from the three-way amalgamation

Erstwhile Vijaya Bank and Dena Bank amalgamated into Bank of Baroda with effect from April 1,2019 and the amalgamated entity. i.e. Bank of Baroda has completed one year of unified operations. Over the past year, the Bank completed harmonisation of all products and processes based on the ‘Best of Three' principle and created the optimum product suite for customers. Bank successfully integrated the payment systems of the erstwhile Dena Bank and Vijaya Bank with itself and the Bank continues on implementing initiatives to further harmonise and improve the functioning of the amalgamated entity.

Data integration / migration of the branches and all other applications made good progress. The Bank aims to complete data integration of all branches during FY 2021. With this, the Bank would have successfully completed the entire integration process of the erstwhile banks with Bank of Baroda.

The entire amalgamation exercise is ‘customer centric'. Bank has taken extreme care to ensure minimum customer inconvenience. Constant customer communication ensured that no major customer grievances related to integration were reported.

Business Performance

The highlights of business performance of the Bank are as below:

Resource Mobilisation, Credit Expansion and Operating Performance

Particulars 31.03.19* 31.03.20
Deposits 6,38,689.7 9,45,985.4
of which- Domestic Deposits 5,17,966.6 8,08,705.5
International Deposits 1,20,723.2 1,37,278.9

 

Domestic Deposits 5,17,966.6 8,08,705.5
of which- Current Account Deposits 34,327.6 49,650.1
Savings Bank Deposits 1,74,076.2 2,66,301.3
CASA Deposits 2,08,403.8 3,15,952.4
Domestic CASA Deposits (%) 40.2 39.1
Advances 4,68,818.7 6,90,120.73
of which- Domestic Advances 3,70,185.0 5,70,340.8
International Advances 98,633.8 1,19,780.0
Total Assets 7,80,987.4 11,57,915.5

The Bank's absolute CASA deposits crossed the Rs 3 lakh crore milestone and reached Rs 3.16 lakh crore as of March 31,2020. The Bank opened 94.70 lakh new CASA accounts during FY 2020 of which bulk of the eligible accounts were opened through TAB Banking. The Bank introduced a host of new products and implemented several new initiatives to improve its processes and strengthen the product proposition to meet the enhanced customer expectations.

New products introduced during FY 2020 include Baroda Platinum Savings account in the value segment, Baroda Government Bodies SB account - an exclusive product for government bodies, BSNL/MTNL savings account with inbuilt personal accident insurance cover of Rs 40 lakh, foreign currency current account for SEZ and for project offices, escrow current account for corporates, real estate developers, and government bodies, “Startup India” and “Scale-Up India” current account schemes exclusively designed to meet the requirements of Startups and, Mahila Shakti- women's savings account with inbuilt complimentary personal accident insurance of Rs 50,000/- for first year.

Some of the strategic initiatives taken by the Bank to increase CASA deposits include integration with Ministry of Corporate Affairs (MCA) for instant current account generation for new companies which are formed through the MCA portal, Memorandum of Understanding (MoU) with Indian Army for salary and pension accounts, and acquiring prestigious banking relationship with Mumbai Police for opening current accounts. The Bank also introduced current account opening through TAB for individual proprietorship concerns. The Bank promoted its health insurance linked SB product - BOB Sehat Suraksha and opened over 1.19 lakh accounts under this segment. To bring strong awareness of health insurance to the women, Bank bundled a complimentary health insurance in its Women Savings Account - BOB Mahila Shakti Account.

The Bank also conducted an extensive customer contact programme “Phir Ek Mulakat” to contact existing customers at their residence or work place to strengthen relationships and over 3.8 lakh customers were contacted under this programme. Bank opened accounts of over 1163 schools for implementation of the grants under the ATAL TINKERING LAB scheme by Government of India.

The Bank offers various depository services like account maintenance, dematerialisation, settlement of trades through market transfers, off-market transfers and inter-depository transfers, distribution of non-cash corporate actions and nomination/ transmission etc. During the year, Bank opened 55,300 demat accounts. The Bank is a depository participant of Central Depository Services Ltd (CDSL) as well as National Securities Depository limited (NSDL).

Credit Expansion:

During FY 2020, credit growth increased to Rs 6,90,121 crore as on March 31,2020 within which domestic advances of the Bank amounted to Rs 5,70,341 crore. The increase in domestic advances was led by retail loans and agriculture loans. Retail loan increased to Rs 1 ,20,657 crore led by home and auto loans at Rs 83,012 crore and Rs 1 6,490 crore respectively. With this, the ratio of retail loans to total domestic loans increased to 19.8% during the year. The international loan book grew by 21.4% to Rs 1 ,19,731 crore as on March 31,2020.

The total assets of the Bank increased to Rs 1 1,57,915 crore as on March 31,2020.

Operating Performance:

The highlights of operating performance of the Bank are as below:

Particulars 31.03.19* 31.03.20
Interest Earned 49,770.0 75,983.7
Interest Expended 31,290.3 48,532.4
Net Interest Income (NII) 18,479.7 27,451.3
Other Income 6,294.5 10,317.3
of which- Fee Income 3,576.1 4,951.0
Forex Income 693.2 1,016.1
Trading Gains 989.5 2,750.7
Recovery from PWO 832.0 1,531.8
Non-customer interest income 204.0 67.0
Operating Income (NII + Other Income) 24,774.2 37,768.6
Operating Expenses 11,287.9 18,077.2
Employee Expenses 5,039.1 8,769.5
Other Operating Expenses 6,248.9 9,307.7
Operating Profit 13,486.8 19,691.4
Provisions 12,788.7 21,493.5
of which-Provisions for NPAs and Bad debts written off 12,192.4 16,404.9
Provision for Standard Advances (35.5) 3,085.0
Provision for Depreciation on Investment 138.5 987.0
Other Provisions 493.3 (1,332.0)
Profit Before Tax 698.2 (1,802.1)
Provision for Tax 264.6 (2,348.3)
Net Profit 433.5 546.2

 

Key Performance Indicators 31.03.19* 31.03.20
Cost of Deposits - Global (%) 4.68 4.98
Cost of Deposits - Domestic (%) 5.33 5.39
Cost of Deposits - International (%) 1.89 2.03
Yield on Advances - Global (%) 7.65 7.99
Yield on Advances (Domestic) (%) 8.67 8.82
Yield on Advances (International) (%) 4.12 3.77
Net Interest Margin - Global (%) 2.72 2.72
Net Interest Margin - Domestic (%) 2.93 2.84
Net Interest Margin - International (%) 1.71 1.34
Cost-Income Ratio (%) 45.56 47.86
Return on Average Assets (ROAA) (%) 0.06 0.06
Return on Equity (%) 1.18 1.23

The interest income of the Bank increased to Rs 75,984 crore during FY 2020. The global yield on advances increased to 7.99% from 7.65% and yield on domestic advances rose to 8.82% from 8.67%.

Total interest expenses stood at Rs 48,532 crore in FY 2020. The domestic cost of deposits stood at 5.39%.The cost of deposits in the international book increased from 1.89% to 2.03%. Net Interest Income (NII) for the Bank increased to a level of Rs 27,451 crore during FY 2020. Global NIM has remained constant at 2.72%.

Other income of the Bank increased to Rs 1 0,317 crore on account of increase in treasury gains to Rs 2,751 crore. Recovery from written-off accounts was higher at Rs 1 ,532 crore.

Operating expenses increased to Rs 1 8,077 crore in FY 2020. Employee cost during the year was Rs 8,770 crore whereas other operating expenses were Rs 9,308 crore. As a result, operating profit of the Bank increased to Rs 1 9,691 crore during FY 2020. Total provisions (other than tax) and contingencies increased to Rs 21,493 crore as provisions for NPAs increased to Rs 1 6,405 crore in FY 2020. The Bank posted a net profit of Rs 546 crore in FY 2020.

Corporate Credit

Corporate credit in the Bank is serviced through 14 Corporate Financial Services (CFS) branches which manage about 77% of the total corporate credit portfolio of the Bank. The corporate credit portfolio of the Bank increased to Rs 2,91,543 crore as on March 31,2020.

With revamp in approach towards corporate credit delivery, the risk profile of the portfolio further improved during FY 2020 as observed in the rating distribution of domestic credit portfolio as below:

Credit Rating Distribution** 31.03.19* 31.03.20
A and above 60% 61%
BBB 14% 19%
Below BBB 16% 15%
Unrated 10% 5%

**External rating distribution of advances above Rs 5 crore.

Total portfolio comprising of investment grade (BBB and above) in FY 2020 was 80% as against 74% in the previous year. Exposure to high rated accounts has helped to reduce capital charge and enhanced capital efficiency.

With a view to ensure enhanced customer experience, Bank has a bouquet of products and services as under:

• Supply chain finance including vendor financing, dealer financing and receivable financing.

• Baroda Diginext i.e. Cash Management Services (CMS) consisting of receivables and payables management services through efficient collection and integrated payment systems.

• “Usance Payable at Sight” (UPAS) LC - a product introduced as an alternate to buyer's credit leading to augmented growth in fee based income.

• In-house Project Finance Division for carrying out technoeconomic viability to reduce dependence on external consultants, improving the turnaround time (TAT) and contributing to the Bank's bottom line.

During the year under review, the corporate credit portfolio reaped the benefits of the amalgamation as under:

• Corporate vertical accounts have already been migrated to a common IT platform (Finacle 10). This has enabled automation in processing, reporting and monitoring. As a result, all corporate borrowers of the amalgamated entity have access to new products and services like supply chain finance, value chain finance, cash management services etc.

• An extensive exercise was undertaken to develop a common policy for all clients wherein the most beneficial and rational terms and policy guidelines of all three banks were incorporated. This led to simplification in assessment thus reducing time taken for decision making.

• In addition to the above, rationalisation of pricing was done to provide competitive rates to borrowers. This led to improved utilisation and availment of products and services.

• All large corporate accounts are serviced through specialised corporate credit branches which has resulted in standardisation of services, improved risk management and quick decision making.

Target Market approach: FY 2021

The Bank proposes to set up four Integrated CFS (ICFS) branches across the country during FY 2021 for quick processing of corporate proposals. The Bank follows a target market approach which has the following features:

• Identification of industries / sectors for growth based on industry outlook i.e. the combined output of various industry parameters including market size, growth, demand-supply outlook, cost structure, competition, financial performance, government policies and investment outlay.

• Sector-wise business plan for target market lending, based on exposure caps, existing exposures and further appetite for fresh acquisitions for the current financial year.

• Precise account planning with structured calling plans for meetings, identifying business opportunities, approval and closure.

• Execution of the business plan under target market approach through dedicated relationship managers across the Bank.

• The Bank focuses on overall yield from the customer rather than interest income by offering ancillary services like supply chain finance, value chain finance, CMS facility and other retail products.

MSME Credit

The MSME portfolio as on March 31,2020 stands at Rs 87,328 crore. The Bank added 94,775 new MSME customers to its base in FY 2020. To provide access to working capital to MSMEs at competitive rates on Trade Receivables electronic Discount System (TReDS), the Bank on-boarded itself on all the three TReDS platforms. As on March 31, 2020, the TReDS business accounted for Rs 385 crore. The Supply Chain business, which aims at addressing the working capital requirement and liquidity support to the MSMEs, has an outstanding book of Rs 721 crore as on March 31,2020. It is backed by a fully digitised supply chain financing product and has provided a new vehicle for sourcing of MSME customers, specifically vendors and suppliers of anchor corporates.

The Bank serves the MSME sector through 37 dedicated SME processing cells named ‘SME loan factories' and a wide network of branches servicing the MSME segment with a target market approach. Upon amalgamation, products and processes of the three entities have been harmonised to reach out to existing and new customers.

Supporting the Government's efforts under MUDRA scheme on employment generation, the Bank disbursed Rs 1 0,303 crore to the sector, thereby achieving the targets set for FY 2020. The Bank also extended credit of Rs 2,194 crore to SC, ST and women entrepreneurs under the Stand-Up India programme since the launch of the scheme. The Bank devised a product “Baroda Tankerz Scheme” for financing LPG tankers to SC/ ST borrowers under Stand-Up India scheme and was ranked first amongst PSBs during FY 2020. Under support of the Government's initiative to augment MSME units by speedy sanction of MSME loans through the ‘PSBloansin59minutes' portal, the Bank was ranked first amongst all PSBs in terms of in-principle sanction/ final sanction/ disbursement, as on March 31,2020.

The Bank entered into a MoU with Government of Gujarat for hassle free finance to MSME borrowers and to be the preferred Bank under the Government of Gujarat's portal for the new entrepreneurs in the identified industrial area.

The Bank also opened 15 startup branches across India to cater to the needs of new entrepreneurs under “Make in India” initiatives by Government of India.

In addition, the Bank has 11 area specific schemes for financing SME units. The Bank has been serving its MSME clientele through 30 different products, denoting the thrust of the Bank on this segment. The Bank has also adopted a new pricing strategy named CIBIL MSME Rank (CMR) based pricing for MSME enterprises with credit exposure above Rs 25 lakh and up to Rs 5 crore, which enables MSME businesses to access finance at competitive rates. To reach out to newer business segments and to deliver the benefit of lower interest rates in comparison to NBFCs, the Bank has entered into coorigination partnership with different NBFCs.

The Bank commissioned a dedicated team for financing commercial vehicles, and construction and mining equipment for the MSME segment. For this purpose, Bank entered into a strategic alliance with Tata Motor Finance Ltd. and SREI for capturing new business in the commercial vehicles segment. Further, the Bank on-boarded clients under a new scheme ‘Value Chain Finance' which is specifically designed to address the working capital requirements of such MSME customers who are dealing with anchors having maximum turnover of up to Rs 2,000 crore.

To ensure better reach to MSME market segments, the Bank established a separate specialised team dedicated to sales and loan processing, deployed at SME loan factories. The Bank participated in “Customer Outreach Initiatives” during FY 2020, by organising camps at 27 districts in 2 phases of the campaign. The Bank is also participating in MSME schemes such as ‘One District One Product' promoted by the Uttar Pradesh Government. Government Schemes Processing Cells (GSPC) have been set up across India to enable seamless processing of Pradhan Mantri Mudra Yojana, Stand-Up India, Pradhan Mantri Employment Generation Programme, National Urban Livelihoods Mission and State- specific government sponsored schemes.

Retail Credit

The retail portfolio of the Bank increased to Rs 1 ,20,657 crore as on March 31, 2020. The share of retail loans increased to 19.8% as of March 31,2019 of domestic advances as against 18.3% as on March 31,2019. This was possible as the Bank constantly strives to provide seamless credit delivery to customers in a hassle free manner

The Bank achieved 99.47% of the disbursement target given by Ministry of Finance for education loans. Although education loan market contracted by (-) 3.30%, the Bank registered a growth of 16.13% on YoY basis. The Bank was also adjudged as Best Buy for customer in education loans by Consumer Voice, which is an organisation supported by Ministry of Consumer Affairs under ‘Jago Grahak Jago' campaign. The Bank also continued to gain market share in vehicle loan business.

With the first ever three way amalgamation of PSU banks in the country, ‘best of three' approach was followed in products and processes. This led to availability of various new products such as Suvidha Personal Loans, special takeover schemes and pre-approved loans to customers of all three banks. Further, operating units were provided access to Loan Management System in FY 2020, which led to standardisation of loan appraisal process and improvement in TAT

The key initiatives taken by retail business in FY 2020 include:

• Opening of -14- new Specialised Mortgage Stores (SMS) and relocation of -10- SMS across geography to deliver specialised and faster credit delivery thereby taking the total number of SMS to 99 as on March 31,2020.

• Offering of fully digitised pre-approved loans (personal loans/ car loans) through TAB banking.

• Rationalisation of pricing through linkage with external benchmark (Repo rate) in all retail lending products. This enabled instant transmission of policy rates to the customers.

• Achievement of 50% YoY growth in credit insurance attachment ratio thereby securing the portfolio as well as family members of borrowers from life uncertainties.

• Focused approach on empanelment of digital Direct Selling Agents.

Rural and Agricultural Lending

The Bank has a network of 2,934 branches in rural and 2,525 branches in semi urban areas which are leveraged for priority sector and agriculture lending. The Bank's agriculture advances grew to Rs 87,921 crore as on March 31,2020.

The Bank is the convener of State Level Bankers' Committee (SLBC) in 3 states i.e. Uttar Pradesh, Gujarat and Rajasthan and Union Territory Level Bankers' Committee (UTLBC) in 1 Union Territory i.e. New Union Territory of Dadra and Nagar Haveli and Daman and Diu. Bank also shoulders the Lead Bank responsibility in 67 districts across the country.

The Bank continues to be the leader in lending to agriculture sector which received an impetus with the Government's vision of doubling farmers' income by 2022. The Bank has moved beyond granting simple farm credit to a more diversified rural lending strategy by focusing on new products like farm mechanisation, horticulture loans, warehouse receipt financing, financing to Self Help Groups (SHGs) , food and agro-processing and adopting a community based lending model for the small farmers across rural customer segments.

During the year, the Bank issued 3.76 lakh new Kisan Credit Cards. Baroda Kisan RuPay Card, an ATM enabled smart card, was issued to 18.11 lakh farmers.

As a part of its microfinance initiatives, the Bank has credit linked 56,367 SHGs by granting loans amounting to Rs 1,093 crore.

Centralised Processing Centres (CPC) for processing of agriculture loans have started functioning at Gandhinagar and Hyderabad.

Baroda Kisan, a unique initiative by the Bank was launched on September 21, 2019. This digital platform in partnership with strategic players aims to become a one-stop solution to cater to all major needs of a farmer ranging from notifications, weather forecast information, crop health, soil moisture, pest infection information, mandi prices, crop specific advisory, purchasing inputs (seeds, fertilisers, pesticides), equipment renting advisory services and innovative financing options for sale of agriculture produce.

In order to extend customer outreach, Baroda Kisan Pakhwada, a fortnight-long farmer outreach programme was organised across the country from October 1,2019 to October 15, 2019 and culminated with the celebration of Baroda Kisan Divas on October 16, 2019. During this fortnight, more than 6 lakh farmers were engaged with the Bank in active participation in various activities and loans amounting to Rs 2,229 crore were disbursed in 1,39,893 accounts.

The details of events organised and farmers connected during Baroda Kisan Pakhwada in FY 2020 are as given below::

Particulars Count
1 No. of Choupals organised 13,385
2 No. of participants in Choupals 3,56,056
3 No. of Kisan Melas (Credit Camps)/ Mega Kisan Mela 1,079
4 No. of Health Camps (Soil / Animal / Farmer) 745
5 Farmer Meetings (Other than Choupals) 6,135
6 Farmers Appreciated 28,311
7 Total Farmers Connected 6,11,779

Limca Book of Records has recognised the initiative of connecting with the farmers through Baroda Kisan Pakhwada as ‘being the largest farmer engagement programme by a Bank in the country'.

Priority Sector Lending

Priority sector advances of the Bank stood at Rs 2,26,336 crore as of March 31, 2020. The Bank achieved the mandatory targets under “Small and Marginal Farmers and weaker section advances” segments as on March 31,2020.

Advances to SC/ST Communities

The outstanding advances to SC/ST communities went up to Rs 1 1,106 crore as of March 31,2020. The SC/ST communities accounted for 17.06% share in total advances granted to weaker sections by the Bank.

Furthermore, special thrust is laid by the Bank in financing SC/ST communities under various government sponsored schemes such as National Rural Livelihood Mission (NRLM), MUDRA Loan, Startup India and Stand-Up India. Bank is exploring possibilities of entering into tie-ups with various State Rural Livelihood Missions (SRLMs) for providing finance to women SHGs to further the mission of women empowerment.

Financial Inclusion (FI)

In order to provide banking services to all sections of the society especially to rural, semi urban and urban poor at an affordable cost, Bank has taken financial inclusion as a social commitment and also an opportunity to tap business through Business Correspondent (BC) model. The Bank has been actively working towards ensuring financial inclusion in the country through its branch and BC network. With the advent of technology, innovative steps are being taken for serving in unbanked areas. The Bank deployed more than 18,000

BCs to cater to rural, semi urban and urban areas across the country.

The Bank took the following initiatives towards promoting financial inclusion:

• Micro insurance enrolment through various channels such as missed call / net banking / mobile banking/ SMS/ BC / branch.

• MoU with Women's World Banking, USA to increase usage of PMJDY accounts by women customers and launch of Baroda Jan Dhan Plus scheme for greater engagement with urban PMJDY women customers to inculcate saving habits.

• Availability of various services such as printing of passbook, issuing of digital life certificate (JeevanPramaan), payments through Bharat Bill Payment System (BBPS), initiation of request for cheque book, cheque status enquiry, stop payment of cheque, initiation of request for RuPay debit card at BC point

Performance highlights under financial inclusion during FY 2020

• Basic Saving Bank Deposit (BSBD) accounts increased by 41.20 lakh and deposits increased by Rs 3,758 crore.

• PMJDY accounts increased to 410.62 lakh and PMJDY deposits increased to Rs 1 4,294 crore.

• The Bank's market share as on March 31,2020 improved to 13.45% for number of PMJDY accounts and 14.75% for deposits under PMJDY accounts.

• The share of zero balance PMJDY accounts of the Bank were brought down to 7.88% as on March 31,2020.

• Cumulative enrolment in micro insurance was 212.69 lakh an increase of 44.40 lakh over last year.

• Fresh enrolment under PMJJBY for the year was 7.80 lakh and under PMSBY was 31.49 lakh.

• Bank surpassed the annual target of 5.62 lakh Atal Pension Yojana (APY) accounts by opening 5.74 lakh accounts during the year.

During the year, 998 Aadhar enrolment centres were set up as against an identified number of 935 centres. The Bank achieved the target as per UIDAI guidelines for minimum enrolment/ updation per day per branch throughout the year.

Performance of RRBs sponsored by Bank of Baroda

The Bank has sponsored three Regional Rural Banks (RRBs) viz. Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Kshetriya Gramin Bank and Baroda Gujarat Gramin Bank. The aggregate business of these three RRBs rose to Rs 76,278 crore as of March 31,2020. The three RRBs together posted a net profit of Rs 1 66 crore during FY 2020. The net worth of these RRBs put together improved to Rs 3,038 crore as of March 31,2020.

In terms of Government of India notification no. F. No. 7/8/2017- RRB (Gujarat) dated February 22, 2019, amalgamation of Baroda Gujarat Gramin Bank and Dena Gujarat Gramin Bank has been made effective on April 1, 2019 and new entity namely Baroda Gujarat Gramin Bank as transferee bank started functioning.

International Operations

The Bank has 101 overseas branches/ offices across 21 countries comprising of 35 overseas branches, 1 Mobile Unit and 9 Electronic Banking Service Units in 13 countries, 55 branches of the Bank's eight overseas subsidiaries and one International Banking Unit in GIFT City (SEZ), Gandhinagar, Gujarat, India which deals exclusively in foreign currency. In addition, the Bank has one joint venture viz. India International Bank (Malaysia) Bhd. in Malaysia and one associate bank viz. Indo Zambia Bank Ltd. in Zambia with 30 branches. During the year, Bank's wholly owned subsidiary at Botswana viz. Bank of Baroda (Botswana) Ltd. opened one new branch at Palapye.

The Bank has presence in the world's major financial centres viz. New York, London, Singapore, Brussels and Dubai. In the international arena, the Bank pursues a strategy of driving growth and value by meeting the international banking requirements of Indian corporates; catering to India linked cross-border trade flows for Indian and locally incorporated companies or firms and being the preferred Bank for NRIs/ Persons of Indian Origin. The Bank is continuously consolidating and re-organising its international operations in-line with the new global environment and is focused on rebalancing the portfolio with a view to manage risks, shed low-yield assets and increase profitability.

Since FY 2018, the Bank has strategically undertaken rationalisation of its overseas presence based on a comprehensive evaluation framework. This is also in consonance with the Government of India directives in this regard. The Bank decided to close its branches at China and South Africa, and divest its entire investment in the Subsidiaries at Trinidad and Tobago. Bank has also proposed to close its branch at Hong Kong and subsequently, set up a representative office

As of March 31, 2020, the Bank's total business from international branches was Rs 2,57,010 crore and constituted 15.71% of the overall business. Total deposits were at Rs 1 ,37,279 crore while net advances were Rs 1 ,19,731 crore.

Treasury Operations

The Bank operates its treasury operations from a state-of- the-art dealing room at its corporate office in Mumbai. The treasury is a prominent player in various markets e.g. foreign exchange, interest rates, fixed income, money market, derivative, equity, currency and interest rate futures and other alternate asset classes. The Bank offers various services like interest rate swaps, currency swaps, currency options and forward contracts through authorised branches dealing in foreign exchange across India.

The treasury is responsible for managing the funds position of the Bank and ensuring safety, liquidity and optimal yield on these funds. It maintains Statutory Reserve Requirements and invests in corporate bonds, commercial papers, equity, venture capital, mutual funds, etc. as a part of the fund management operations.

The total size of the Bank's domestic investment book as of March 31, 2020 stood at Rs 2,65,016 crore. The share of Statutory Liquidity Ratio (SLR) securities in total investments was 83.46%. The percentage of SLR securities (unencumbered) to NDTL at March 31,2020 was at 22.58%.

The Bank demonstrated its capabilities in effectively dealing with extreme adverse circumstances in the market. The Bank has been able to capitalise on the opportunities offered by yield movements. The Bank managed its portfolio efficiently and maintained average yields on investment for FY 2020 at 8.43% (including profit on sale). During FY 2020, the profit on sale of investment and foreign exchange earnings were Rs 2,751 crore and Rs 746 crore respectively.

Various contingency measures were undertaken to ensure uninterrupted business operations during the lockdown period caused by the pandemic. In addition to a Business Continuity Plan (BCP) setup of treasury at one location and additional two temporary, alternate sites in Mumbai, an alternate setup was also prepared in Gujarat to counter total shutdown in Mumbai. Remote access was enabled for staff, thus covering all functions of front and back office of treasury function. Hence, the entire treasury operations was run successfully and efficiently with these setups.

Government Business

Government business has huge potential to act as an effective vehicle for business growth and contribute significantly to CASA and fee based income.

The Bank is authorised to collect direct taxes through its designated branches and is an accredited banker to the Ministry of Health and Family Welfare and Ministry of Legal Affairs. Bank deployed relationship managers for government business in different states to provide much required thrust to obtain greater share in state government business and for good liaisoning with different departments in the state government for prompt delivery of services and products. Bank was appointed as Sponsor Bank for PM KiSaN of Madhya Pradesh Government.

The Bank is partnering with various departments at the central and state levels in developing e-solutions in line with the digital initiatives of the Government of India, leading to transparency and efficiency. MoUs with Ministry of Tourism, Sports Authority of India, Ministry of Shipping - Haldia Dock Complex, Noida Authority, Razorpay, and Indian Army for salary and pension accounts were signed to enhance fresh business opportunities.

In addition to the Deendyal Upadhyay Kandla Port, the Bank also signed MoU of Port Community System (PCS) with the ports at Haldia, Paradeep and Vishakhapatnam.

The Bank received recognition by National Saving Institute of Government of India for good work in Public Provident Fund (PPF), Sukanya Samriddhi Yojna (SSA) and Senior Citizen Savings Scheme (SCSS) and by Pension Fund Regulatory Development Authority for the achievement of the targets under APY and NPS.

Wealth Management

Wealth management services remain an area of focus for the Bank and provide investment and insurance services to customers. With the amalgamation, customers of erstwhile Dena Bank and Vijaya Bank were also able to benefit from the value added services and products offered by the Bank through its corporate partners. The Bank strives to be a one- stop shop for all financial needs of its customers. The Bank's flagship programme, ‘Baroda Radiance' continues to cater to the requirements of High Net worth Individuals through a dedicated structure of relationship managers. The Bank aims at providing best-in-class solutions and services to its customers and is developing digital solutions to do so. Some of the initiatives taken during the year are:

1) Fresh recruitment of a specialised team of wealth executives during the year to render investment and insurance services to the customers outside the ‘Radiance' programme.

2) Development and refining of the Bank's digital platform i.e. Baroda Wealth Solutions to enable seamless online boarding / distribution of investment and insurance products for customers.

3) Issuance of 97,096 life insurance policies.

4) Provision of health Insurance products to 3.26 lakh customers.

5) Offering ‘Group Credit Life' and 'Group Criti Care' to the retail borrowers, covering the credit risk in case of any eventuality (life or critical illness).

Stressed Asset Management

With an increase in non-performing loans over the years, the Bank revamped its strategy to augment recoveries and reduce slippages. For this, the Bank created a ‘Stressed Assets Management Vertical', where all major and medium sized NPA accounts are handled by specialised units called Stressed Assets Recovery Branches (SARB) set up at zonal and regional level. These specialised branches are under direct control of the corporate office. The movement of NPAs during the last two years is as under:

Particulars 31.03.19* 31.03.20
Gross NPA 48,233 69,381
Gross NPA (%) 9.61 9.40
Net NPA 15,609 21,577
Net NPA (%) 3.33 3.13
Additions to NPAs 13,614 23,315
Recovery/ Upgradations 8,759 7,972
Write offs including TWOs 13,102 15,806
Recoveries in written off accounts 832 1,532
Provision Coverage Ratio (including TWO) (%) 78.68 81.33
Provision Coverage Ratio (excluding TWO) (%) 67.64 68.90

As per asset classification, the bifurcation of loan book is as given below:

Asset Category 31.03.19* 31.03.20
Standard advances 4,53,473 6,68,715
Gross NPA 48,233 69,381
Total Gross Advances 5,01,706 7,38,096
Gross NPAs comprising
Sub-standard 9,014 14,311
Doubtful 32,398 37,005
Loss 6,821 18,065
Total Gross NPA 48,233 69,381

In order to address the large number of small NPA accounts, sector wise special OTS schemes were launched by the Bank. For MSME sector, the Bank launched special OTS scheme “MSME OTS Scheme” to provide opportunity for repayment of dues. For farmers in distress, a special OTS scheme was launched during FY 2020. The Bank continued with its earlier OTS scheme Lakshya II (Lakshya Agriculture, Retail and MSME). The Bank has made recoveries and upgraded NPA accounts amounting to Rs.1,296 crore under these schemes. An application called ‘One Time Settlement Tracking System' was implemented wherein customers could initiate settlement proceedings online. The Bank also set up a legal war-room for real-time tracking of recovery proceedings and to aid accelerated decision making wherein high value suit-filed accounts are monitored.

The Bank set up a solution provider cell to augment recoveries to ensure minimal slippages and to provide resolution strategies for large NPA accounts i.e. exposure above Rs 30 crores. For timely collections from retail and SME customers, a - 500 - member call centre with multilingual support was set up and supported by feet-on-street staff to drive on-ground collections. A special taskforce of about 2,300 officials of the Bank was deployed for recovery of small NPA and potential NPA accounts. Additionally, BCs are incentivised for collections in crop loans.

The Bank strengthened its NPA management with daily dashboards like Days Past Due (DPD) Report, NPA movement chart and mock runs for forecasting degradations to ensure reduction in slippages and improvement in collections. Further, the Bank is in the process of developing a mobile application which would enable the collection agents on the field to collect the amount based on data fed in the system and also update recovery details.

In addition, the Bank put in place the following measures on an ongoing basis to facilitate recovery of non-performing assets:

• Assigning nodal officers at each DRT for follow-up of legal cases on a daily basis so as to minimise the delay in obtaining decrees and execution and to maximise the recoveries.

• Taking assistance from advocates/consultants to liaise with Official Liquidators (OL) to get the recoveries in actual realisation of amounts by OLs.

• Liaising with Official Liquidators, organising recovery camps across branches, close monitoring of stressed accounts and recovery agents at all levels and monthly e-auctioning, especially in DRT suit filed NPA accounts.

• Improved use of online OTS platform to reduce TAT in OTS sanctions.

• Entered into tie-up with Magic Bricks for listing of properties in Bank's physical possession under SARFAESI Act.

• Empanelled real estate brokers for finding buyers for sale of properties in Bank's possession.

• The Bank proposes to set up five new Stressed Assets Management branches (SAM) exclusively for NCLT and high value NPA accounts.

Digital Transformation

The Bank is committed to digitisation and continuously strives to migrate transactions to digital channels which leads to better customer experience. The major focus of digital banking is to make Bank's products available to customers through digital and alternate delivery channels such as BHIM Baroda Pay, Baroda M-connect Plus, Baroda Connect, debit card, BHIM Aadhaar, Multi-Function Kiosk, Self Service Passbook Printers, TAB Banking, Internet Payment Gateway (IPG), BBPS, etc.

Bank has taken up responsibility of leading the initiative on “Promotion of Digital Transactions including Digital Payments” and is working on various strategies to create an ecosystem to enable digital journeys for customers. The Bank is working on strengthening of digital payment infrastructure and creating awareness through promotions of digital payments to achieve Government's vision of making citizens of the country digitally empowered.

The Digital India programme is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. “Faceless, Paperless, Cashless” is one of professed role of Digital India.

With an increased number of customers looking to transition to digital modes of payment, the Bank seeks to handhold and guide them through this journey. Several initiatives were undertaken to promote digital payments and achieve the targets in a mission mode. They are outlined as below:

Mobile Banking: The Bank added a number of services such as FASTag recharge, updation of email ID, linking and fund transfer to SSA, insurance and investments (PMJJBY/PMSBY/APY), access to Baroda Wealth, reset of internet banking password, extension of Baroda Kisan through mobile, application for export credit and locker facility. On an overall basis, 44 new features and services were added during the year.

Internet Payment Gateway: A new IPG infrastructure was set up to provide an electronic payment platform, Baroda e-Gateway for e-commerce business by enabling payment collection using credit card/ debit card and net banking through 18 aggregators/master merchants. Post amalgamation, 304 merchants from erstwhile Dena and Vijaya Bank were on-boarded on the Bank's payment gateway in June 2019. Bank achieved growth of 110% in Merchant on-boarding and transaction growth of 274% in FY 2020.

• Debit cards: The Bank has an active card base of 5.40 crore as on 31.03.2020. To increase e-commerce / POS transactions and to make Bank's debit card as the preferred card of choice for the customer, the Bank tied up with various merchants for providing lucrative offers to debit card customers. The Bank has also enabled RuPay debit cards for use in Bhutan for its RuPay debit card holders.

• Bharat Bill Payment System (BBPS): Bank provides BBPS services in mobile banking, BHIM UPI, BHIM Baroda Pay UPI app, net banking, BC points and UMANG application through net banking. With the integration of BBPS with BC points in September 2019, customers can avail the BBPS bill payment services at BC points as well. The Bank on-boarded Baroda FASTag as a biller to BOB BBPS systems in March 2020 and enabled newly introduced categories in front-end channels. Bank has achieved 30.55% transaction growth in BBPS - Customer Operating Unit (COU) and 60.22% in Biller Operating Unit (BOU).

• Baroda FASTag (National E Toll Collection - NETC):

The Bank acts as a tag issuer for the FASTag initiative by National Highway Authority of India (NHAI). This enables the customers hassle free toll payment service. The tag can be easily recharged through various payment channels such as debit cards, credit cards, net banking or UPI app. Bank launched various campaigns during FY 2020 to increase the FasTag sales, which resulted in good growth numbers in issuances as well as transactions.

• ATM banking: User-friendly graphic screens and easy to follow instructions in a language of customer's choice makes ATM Banking a smooth experience. ATMs are enriched with features such as green pin generation, NEFT, bill payment etc. The Bank successfully migrated all scheduled ATMs of erstwhile Dena and Vijaya Bank to Bank of Baroda switch. Bank has 13,193 ATMs, including cash recyclers as on March 31,2020.

• Self Service Pass Book Printer (SSPBP): A fully automated machine having the ability to auto flip, auto align and update the customer passbook without any manual intervention makes printing of passbooks convenient for all strata of customers. The Bank has 4,012 SSPBPs. The Bank enabled QR code based SSPBPs at four locations and is the first in the industry to implement QR code based fully automatic machines.

• TabiT: The Bank embarked upon digitising its current account customer onboarding process through tablet for instant account opening through Baroda TabiT This facility is available for sole proprietorship and individual current account and the process for partnership account is underway. Bank has also digitised the process of on-boarding UPI merchants as part of current account (Individual and sole proprietorship) opening through Baroda TabiT

Record digitisation: Digitisation of records is an ambitious project of the Bank under which around 25 crore documents covering more than -3,500- branches were scanned. As a result, around 2 lakh sq.ft of space was unlocked in the identified branches of the Bank. After successful implementation of the records digitisation in the Bank's identified branches and offices, it is being implemented in identified branches and offices of eDena and eVijaya Bank.

Analytics Centre of Excellence (ACoE)

Analytics Centre of Excellence (ACoE) built a petabyte scale Big Data Lake (BDL) platform which can process large volumes of structured and unstructured data. Leveraging the BDL, the Bank developed several predictive and machine learning based analytics models and self-service decision dashboards helping the Bank increase revenue, reduce cost and improve risk profile. This big data lake has a cutting edge architecture allowing it to seamlessly scale horizontally and vertically.

Analytics and machine learning has been at the core of the Bank's revenue programmes over the last two years. The Bank's cross-sell and up-sell opportunities in retail banking, MSME and wealth management segments are driven by over 15 machine learning and predictive models. One of the key tenets of the ACoE programme was driving the culture of data driven decision making - self-service campaign tracking dashboards provide near real time updates on different campaigns. This helps the Bank to effectively cross-sell its products and services.

To support the collection department in prioritising its collection effort, the Bank has built five predictive collection models indicating the high risk cases. These models augment the Bank's collection efforts bringing down overall collection cost and lowering slippages. Self-service dashboards for NPA and delinquency have been enabled for all branches to ensure management of delinquent customers across the board.

A number of risk related statistical models have been deployed for better prediction of expected credit loss. The models allow for more accurate provisioning. The machine learning based models for predicting core deposit balances allow the Bank to improve asset liability management. Over 60 Early Warning Signals (EWS) have been built through aggregation of internal and external data and the focus is on improving the Bank's ability to ensure AML triggers, detect fraud and drive regulatory compliance.

Information Technology (IT)

The Bank is constantly evolving its products, systems and structure to meet the growing aspirations of the customers. Digitisation requires continuous upgradation of the IT infrastructure. Some of the measures taken in the year are:

Extension of TAB based products to:

• Pre-Approved personal loan and auto loan . Pre-approved loan offers are sent to eligible customers through SMS. Interested customers can walk into a branch to avail the loans.

• Current accounts which offer an end-to-end digitised, simplified on-boarding journey for customers to open individual, sole-proprietor and non-individual current account.

• FASTag issuance for new and existing customers. If customer is New to Bank (NTB) the KYC details will be captured first.

Bank also rolled out a debit card with EMI feature. This product is designed and developed to offer instant preapproved personal loans to eligible customers at Point of Sale in the form of EMIs. Bank has also initiated an exercise of instant current account opening of online requests received from MCA under SPICe (Simplified Proforma for Incorporating Company Electronically) process. Bank has also tied up with MSIL (Maruti Suzuki India Ltd.) for auto loans. Pre-approved auto loan sanction and disbursement for customers is available at MSIL portal for purchasing cars of various models. The Bank embarked on the journey to build a one-stop solution “Baroda Kisan - Agri Platform” for farmer customers and collaborated with 7 AgriTechs for implementing Baroda Kisan.

The Bank upgraded its Loan Management System with new Loan Lifecycle Processing System. This new system streamlines loan origination and tracking process to ensure faster loan disbursals leading to business growth. The digitised solution enables end-to-end processing of loan proposals using image based workflow and Business Process Management (BPM) tool to improve TAT.

Bank is in process of implementing model builder to build predictive models, aligning actions and outcomes through analytics to maximise business performance to build competitive advantage. The solution delivers unique capabilities for managing complex decisions across the enterprise resulting in immediate value and allowing high impact decisions to be made with confidence.

The Bank is compliant with all the RBI mandates i.e. changes of old MICR, IFSC by March 31,2020 related to amalgamation of eVijaya and eDena Bank. In addition to the above, the Bank migrated all the payment applications i.e ATM, debit card, IMPS, NEFT RTGS, ECS mandates, internet banking and mobile banking. Bank has completed the movement to the newly built best in class Data Centre to ensure uninterrupted service delivery to its customers. Bank's Data Centre and DR operations are certified to ISO27001 standard which is a set of international best practices in the field of information security and provides assurance to all the stakeholders.

Cyber Security

Over the years, the Bank has built a strong foundation for cyber security comprising of a comprehensive set of information security measures to counter cyber attacks. The Bank has a well-defined cyber security governance framework in place that is operated through a combination of management structure, policy framework and operational controls. The Bank took major steps towards improving the cyber security preparedness in each of the five cyber security domain areas (Identify, Protect, Detect, Respond and Recover) defined in NIST (National Institute of Science and Technology, USA) cyber security framework and RBI cyber security framework.

In order to detect and prevent cyber incidents, the Bank upgraded its captive security operations centre to Cyber Security Operations Centre (C-SOC) which operates round the clock on a 24x7 basis. Further, the Bank has placed the following controls to enhance cyber security:

• ISO 27001:2013 certified data centre and disaster recovery operations (set of international best practices related to information security).

• Implementation of multi-layered security architecture to protect IT assets such as Data Leakage Prevention and Implementation of File Integrity Monitoring (FIM) solution for detection of any changes in configuration of critical servers and devices.

• Periodic audits of applications and infrastructure to identify weaknesses in the existing system and to take steps to rectify deficiencies.

• Monitoring of phishing sites, rogue mobile apps and social media sites for malicious activities/contents and the same are taken down on detection through antiphishing and brand protection services.

• Implementation of Network Behavior Anomaly Detection (NBAD) and forensic solutions.

• Compromise Assessment (CA) activity in place for secure migration of the systems of eVB and eDB branches to Bank's network as per amalgamation plan.

• Assessment of cyber security preparedness of SWIFT system as per SWIFT Customer Security Controls Framework v2019.

• Implementation of technology to protect the systems from Distributed Denial of Service (DDoS) and obtained clean pipe to ensure uninterrupted customer service.

The Bank also took various initiatives for educating customers for cyber security through various channels such as SMS, ATM slips and digital displays. Employees were also given training to enhance cyber security. The Bank participated in the cyber security drills conducted by agencies such as IDRBT, CERT-In to test its capabilities and further strengthen defence against cyber attacks. The Bank has an emergency response team and cyber crisis management plan in place and their effectiveness is periodically tested through drills.

FinTech

The Bank has been in the forefront of the digital revolution and has been the first PSU bank to have a dedicated Fintech vertical since 2016. It has enabled the Bank to develop partnerships with fintechs, launch new products and reinvent business processes. The Bank has about 50 partnerships with diverse fintech startups across lending, wealth, payments and technology as of March 31,2020.

Major achievements and initiatives during the year:

• The Bank continued to maintain its dominant position with a market share of 16% on TReDS platform. The cumulative throughput crossed Rs 2000 crore as on March 31,2020.

• Retail loan products such as home loans, personal loans and auto loans were launched on the Online PSB loans platform. Through this platform customers are able to get an in-principle approval within 30 minutes. The Bank maintained a leadership position in processing retail loans through the platform amongst other lenders.

• Launch of MUDRA loans on the Online PSB loans platform enabled the Bank to extend its reach, digitally to the MSME segment. In-principle approval for MUDRA loans are granted in 30 minutes to eligible applicants. The Bank maintained top position with maximum sanctions of MUDRA loans through the platform amongst other lenders.

• The Bank launched the ‘Off-The-Fly Debit Card EMI' (OTF-DCEMI) for its valued customers in partnership with Pine Labs. This is the Bank's first end-to-end digital loan product to its pre-approved savings bank customers. This product offers small ticket micro /consumer loans to a pre-approved customer base.

• The Baroda StartUp programme was launched by the Bank at the hands of Honorable Finance Secretary, Mr. Rajeev Kumar in February 2020. Under this programme, the Bank established dedicated startup branches at 15 centres that would offer bouquet of services such as customised current accounts, payment gateway, corporate credit cards etc. to meet the financial and banking needs of startups. The Bank is also working on a specific credit product designed to meet the financial needs of the startups.

• During the year the Bank established the BOB Innovation Centre (BoBIC) in collaboration with IIT, Mumbai at its Powai campus. Through this centre, the Bank launched a 100 ideas programme aimed at finding innovative solutions to the various issues faced by the BFSI segment.

Marketing

The Bank has ensured impactful presence in electronic media through regular TV and radio campaigns. In terms of external event associations, the Bank expanded its horizon to include more number of signature events such as Jaipur Literature Festival, Prithvi Festival, IIT - Bombay E-Summit and the Kala Ghoda Arts Festival among others.

The Bank released awareness messages for the public during the COVID-19 pandemic with the tagline “Stay Safe, Bank Safe” which helped register the brand name in mind of the public as a Bank with social commitment.

Professional advertorial releases were made in prominent magazines and newspapers and on Bank's popular products like car loan, home loan, savings account, NRI, FCNR schemes during campaign periods and festival seasons. Bank conducted two major campaigns “Happy Life Festival” and “Khushiyon Ka Remote Control” promoted by the Bank's brand endorser PV Sindhu.

Bank continues its transformation journey from physical to digital marketing with the Bank's website as the convergence point for all the data and customer engagement.

With the above strategic direction, Bank ramped up the digital marketing activities including social media and series of campaigns were conducted for customers for building awareness, creating brand engagement and business generation.

The details of Bank's social media presence are as below:

Social Media Channels Statistics (No of likes / Followers) as on 31.03.2020
Facebook Likes 14,45,000 +
Twitter Followers 95,000 +
YouTube Subscribers 44,000 +
LinkedIn Followers 77,000 +
Instagram Followers 1,10,000 +

As the Bank continues to build modern day digital marketing ecosystem and create an equilibrium between the physical and digital marketing, the objective is to be an aspirational brand which engages, empowers and educates digital audience by providing relevant content and fulfill banking needs by constantly analysing, measuring and improving experience, response and capabilities.

Customer Service

The Bank is sensitive and responsive towards customer needs and believes that technology, products, processes and human resources must be leveraged for delivering superior banking experience to customers.

Bank secured second place amongst PSBs in the ‘EASE of Banking Index', a strategic initiative undertaken by Government of India to imbibe best practices and provide superior customer experiences in PSBs.

Several initiatives were undertaken round the year to ensure “Enhanced Access and Service Excellence” - EASE of banking. Customer interactions are continuously monitored across channels and channel capabilities (functionalities and the user experience) were enhanced to ensure ease of banking from home.

The Bank ensured that frequently used functionalities by customers were made available through digital channels and contact centre. The 24*7 contact centre has the capability to connect with customers in their preferred language. Apart from Hindi and English, the language capability was increased to nine regional languages. The contact centre handled 1.51 crore customer calls during the year (approx. 85% of the calls were answered in 15 seconds).

The Bank launched an enterprise wide Customer Relationship Management (CRM) in the year. Customer Grievance Redressal System (a module of the CRM package) with time- bound auto escalation, options to attach documents, provide feedback on resolution quality and reopen complaints is now widely used by customers.

During FY 2020, the Bank saw significant improvement in the usage of remote channels for managing grievances (only 12% customers' use the branch for lodging complaints). As much as 75% of the grievances were resolved within 7 days in FY 2020.

The Bank implemented a new Queue Management System in 500 branches. Branches also underwent a facelift and were designed to enhance customer experience through better ambience, increased seating area with special focus for senior citizens and the differently abled customers.

Bank is focused on building the ‘Client First' culture and constantly engages with its customer to understand their needs, redesign experiences (product design, systems and processes) and enhance the governance model to deliver superior experiences. Feedback on quality of customer service at branches is obtained through the branch level customer service committee meetings that are held monthly in which customers from various cross sections of the society including senior citizens and pensioners are invited. Service levels across the network of branches are monitored through mystery shopping/service audits as well.

The General Manager, Operations & Services, is designated as Principal Nodal Officer for customer complaints in the Bank. Moreover, all zonal heads and regional heads are designated as nodal officers for their respective zones and regions. Further, the names of respective nodal officers along with their contact numbers are displayed in all the branches of the Bank.

The Bank has appointed an Internal Ombudsman which is a forum made available to customers for grievance redressal prior to approaching the Banking Ombudsman. All complaints, which are rejected or partially accepted by the Bank, are systematically escalated to the Internal Ombudsman for review. This enhances the customer confidence in the Bank's systems and expedites the process of grievance redressal, thus making it more transparent.

At the Board level, the sub-committee of Board for Customer Service addresses the issues relating to the formulation of policies and assessment of compliance with same with the aim of consistent improvement in the quality of customer service. The Bank's code of commitment to customers and MSME's, citizen charter, grievance redressal policy, and banking ombudsman scheme are available on the Bank's website to promote fair banking practices by maintaining transparency in various products, services and policies.

Shared Services

The journey that the Bank started in 2017, through formulating a Shared Services Centre (SSC) to centralise the key operations and activities has come a long way. Through centralisation, Bank has not only enhanced focus on customer service and risk management but also improved scalability, standardisation and risk management. Baroda Global Shared Services (BGSS) helps branches by migrating routine and repetitive transactions to a centralised hub. With this, branches are able to free up to 30 - 35% of their resources and redeploy this capacity in sales, recovery and customer service.

SSC operates from four locations (Mumbai, GIFT City, Gandhinagar, Bengaluru and Hyderabad) and has more than 1400 full time employees (FTEs) in non-voice (transaction processing) and 850 FTEs in voice (call centre with multilingual capabilities).

Functions such as trade and forex operations, account management services , mortgage based lending operations, agriculture loan processing, credit card operations, digital banking operations (reconciliations / vendor management / ATM monitoring / IPG) and pension services have been centralised. Further, centralisation of activities such as migration of collection services, CMS operations, international operations, Aadhar enrolment centres, establishing login shops at SMS and MSME lending operations, would help in releasing even more capacity for sales and customer service.

During the year, a ‘Priority Desk' was set-up to provide services to customers such as corporate customers.

Branch Network

As of March 31,2020, the branch network of the Bank is as under:

31.03.19*

31.03.20 (Amalgamated)

Domestic Branches Number of Branches % Share in Total Number of Branches % Share in Total
Metro 1,203 21.66% 2,163 22.81%
Urban 959 17.27% 1,860 19.62%
Semi-urban 1,546 27.84% 2,525 26.63%
Rural 1,845 33.23% 2,934 30.94%
Total 5,553 100 9,482 100
Overseas Branches/ Offices (including branches of overseas subsidiaries) 100 101

The Bank opened 44 new domestic branches and merged nine branches with existing branches during FY 2020.

Currency Chests

The number of currency chests increased from 100 to 150 after amalgamation. These chests support effective cash management in the Bank as well as vaulting cash on behalf of RBI. All the currency chests as well as branches are provided Note Sorting Machines (NSMs).

Risk Governance and Internal Controls

The Bank has implemented an integrated risk management framework for embedding a strong risk culture within the organisation. The framework ensures the tools and capability are in place to facilitate risk management and decisionmaking across the organisation.

Risk Management Governance

Risk management governance ensures that risk-taking activities are in-line with the Bank's strategy and risk appetite, and covers all material risk categories applicable to the Bank. The Board establishes the tone at the top by promoting risk awareness to promote a sound risk culture. The Bank ensures that material risks and risk-taking activities exceeding the risk appetite and limits, if any, are recognised, escalated and addressed in a timely manner.

The risk appetite framework of the Bank, apart from setting the minimum CRAR reflecting the Bank's risk appetite at the aggregate level, also defines risk appetite for Pillar 1 risks, viz. credit risk, market risk for the trading book and operational risk and Pillar 2 risk, namely Liquidity Risk, Reputation Risk etc.

Three Lines of Defence

To implement effective risk management governance and address the full spectrum of possible risks, the responsibilities among different units of the Bank are defined in such a way that there are three lines of defence which are independent from each other. The Bank uses the industry-standard three lines of defence model to articulate accountabilities and responsibilities for managing risk. It supports the embedding of effective risk management throughout the organisation.

i. First Line of Defence is the business verticals and operating units where risks are taken. In the course of conducting business activities, staff in the business verticals and operating units hold frontline positions and undertake the primary responsibility for the proper identification, assessment, management and reporting of risk exposures on an ongoing basis, having regard to the Bank's risk appetite and the limits/caps therein, policies, procedures and controls.

ii. Second Line of Defence is provided by risk management function and compliance functions which operate and function independently of each other and of the first line of defence. It is primarily responsible for overseeing the measurement and reporting of risk while monitoring and remaining compliant with applicable laws, regulations, corporate governance rules and internal policies.

iii. Third Line of Defence is provided by the internal audit function, which is responsible for providing independent assurance by conducting internal risk-based and other audits. The reviews provide assurance to the Board that the overall governance framework including the risk governance framework is effective and that policies and processes are in place and consistently applied. The role of the audit function is defined and overseen by the Audit Committee of the Board.

Risk Management and Compliance

Risk is an integral part of the banking business and the Bank aims to achieve an appropriate trade-off between risk and returns. To ensure sustainable and consistent growth, the Bank has developed a sound risk management framework so that the risks assumed by the Bank are properly assessed and monitored. The Bank undertakes business activities within the defined risk appetite limits and policies approved by the Board of Directors of the Bank. Specific committees of the Board have been constituted to facilitate focused oversight on various risks. The Board has also constituted a Risk Management Committee of the Board which oversees the different type of risks. It is supported by on-boarding specialists in the area. Policies approved from time to time by the Board of Directors or Committees of the Board form the governing framework for each type of risk.

The Bank has a comprehensive Internal Capital Adequacy Assessment Process and stress test policy. The Pillar 2 risks such as Liquidity Risk, Interest Rate Risk, Concentration Risk, Business and Strategic Risk, Reputation Risk, Pension Obligation Risk etc. and Capital Adequacy under both normal and stressed conditions are assessed as per the extant policies. A brief outline of the mechanism for identifying, evaluating and managing various risks within the Bank is as follows:

Enterprise Risk Management

The diversity of business lines requires a comprehensive Enterprise Risk Management approach to promote an enterprise-wide strong risk management culture to help in the early identification, assessment, measurement, aggregation and management of all risks and to facilitate capital allocation among various business lines. All risks are approved within the overarching risk appetite framework and are adequately hedged.

The Bank is constantly endeavouring to create a strong risk culture by imparting trainings to the employees at all levels.

Credit Risk

Credit risk is managed through a Board approved framework that sets out policies, procedures and reporting which is inline with international best practices. Adequate attention is given to the independence of the risk evaluators and business functions for establishing a sound credit culture and a well- structured credit approval process. Credit risk measurement models are validated by independent model validators for their discriminatory power, accuracy and stability.

The Bank's experience in internal ratings over the years has enabled the Bank to obtain the regulator's approval for running the Foundation Internal Rating (F-IRB) approach of credit risk under Basel II guidelines from March 31, 2013. Under the IRB approach, banks develop their own empirical model to quantify required capital for credit risk.

Bank has well established models for awarding internal rating to the borrowers and these models are calibrated and validated periodically by dedicated internal team as well as external agencies. The Bank has put in place prudential caps across industries, sectors and borrowers to manage credit concentration risk. The portfolio review cell carries out detailed reviews on sectoral exposure, credit concentration, rating distributions and migration.

The Bank has implemented ‘Risk Adjusted Return on Capital (RAROC)' framework for corporate credit exposures for evaluating credit risk exposures from the point of ‘economic value addition' to the shareholders.

The Bank has also implemented Enhanced Access and Service Excellence (EASE) Risk Scoring Model for independent risk- based review of the credit proposals by risk vertical of the Bank, including classification of credit proposals into high/ medium/ low risk along with risk decisions of go/ no go.

Market Risk

Market Risk implies the risk of loss of earnings or economic value due to adverse changes in market rates or prices of trading portfolio. The change in economic value of different market products is largely a function of change in factors such as interest rates, exchange rates, economic growth and business confidence. The Bank has well defined policies to control and monitor its treasury functions which undertake market risk positions.

The Bank measures and monitors interest rate risk in its trading book through duration, modified duration, PV01 and Value at Risk (VaR) on a daily basis. The foreign exchange risk is measured and monitored in terms of Net Overnight Open Position limits (NOOPL), VaR limits, Aggregate Gap Limits (AGL), Individual Gap Limits (IGL) on a daily basis. Equity price risk is measured and monitored through VaR limits and portfolio size limits, etc. At a transaction level, stop loss limits and dealer wise limits have been prescribed and implemented. Under its stress testing framework, the Bank conducts comprehensive stress tests of its trading book portfolio on a quarterly basis.

Asset Liability Management

Liquidity Risk is the inability to meet expected and unexpected cash and collateral obligations at reasonable cost. In the Bank, the liquidity risk is measured and monitored through Flow Approach and Stock Approach and other prudential stipulations as per the latest guidelines of the RBI. The Bank has implemented the Basel III Framework on Liquidity Standards - Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards. The LCR Standard aims to ensure that banks maintain an adequate level of unencumbered High-Quality Liquid Assets that can be converted into cash to meet liquidity needs for a 30-calendar days' time horizon under a significantly severe liquidity stress scenario. The Bank has always been well above the stipulated level of LCR on a solo basis as well as on a consolidated basis. The Bank discloses simple average of daily LCR for the respective quarter as part of Notes to Accounts on its website.

Interest Rate Risk in the Banking Book (IRRBB) arises due to mismatch between rate sensitive assets and liabilities which may adversely impact the earnings/economic value of equity of the Bank with the change in interest rates in the market. For measurement and monitoring of interest rate risk in banking book, the Bank uses risk management tools such as Traditional Gap Analysis, Earning at Risk and Modified Duration of Equity. The short- term impact of interest rate movements on NII is worked out through the ‘Earnings at Risk' approach by taking into consideration parallel shift in yield curve, yield curve risk, basis risk and embedded options risk. The long-term impact of interest rate movements is measured and monitored through change in Market Value of Equity (MVE).

Operational Risk

The Bank has a well-defined Operational Risk Management Framework (ORMF) and Operational Risk Management System (ORMS) for effective management of Operational Risk in the organisation. ORMF comprises of the organisational structure for management of operational risk, governance structures, policies, procedures and processes whereas ORMF consists of the systems used by the Bank in identifying, measuring, monitoring, controlling and mitigating operational risk.

The Bank implemented a web based Operational Risk Management System SAS Enterprise Governance, Risk and Compliance (SAS EGRC) for systemic and integrated management of Operational Risk.

Roll out of Key Risk Indicators Programme (KRI), Risk Control and Self-Assessment Programme (RCSA) and root cause analysis further strengthened the control environment. The Bank created a repository of Internal Loss Data as part of Operational Risk Management.

To mitigate and control operational risk at a transaction level, the Bank has established a Centralised Transaction Monitoring Unit for monitoring of all domestic transactions from the KYC/ AML/ CFT perspective. The Bank segregated customer interface (front office) from the execution of transactions (back office) by centralising a number of back office functions. The Centralised Trade Finance Back Office (TFBO) has been set up to minimise operational risk in forex transactions.

The Bank has put in place an incentive scheme to promote risk culture at enterprise wide level. Financial and non -financial incentives were announced for the employees for reporting of near miss events.

Climate Risk

Climate change risk has become crucial challenge to the financial industry of late. The Bank is committed to reduce the impact of climate change risk and is consciously working towards sustainable development of its banking operations so as to achieve the economic development while maintaining the quality of environmental and social ecosystems.

As a policy matter, to reduce the greenhouse effect, the Bank is not financing borrowers for setting up new units producing / consuming Ozone Depleting Substances (ODS) and small / medium scale units engaged in the manufacturing of aerosol units using Chlorofluorocarbons (CFC). While sanctioning project loans, the Bank ensures that all statutory permissions such as environmental clearance, pollution control etc. are put in place before sanction or disbursement.

The Bank intends to reduce the emissions by adoption of green technologies such as minimising / discontinuing the operation of Diesel Generator (DG) Sets, which acts as one of the major contributors to the environment pollutants and shift to alternate resources like hybrid UPS, solar based systems etc.

The Bank is also considering the impact of climate change while assessing operational risks during natural calamities such as floods, cyclone, earthquake, landslides, wildfires, storms etc. The impact of such risks on the Bank's operations and outcome is presented to various risk management committees from time to time.

The Bank has undertaken following green initiatives for reduction of climate change risk, environmental protection and sustainable development:

a) The Bank implemented e-approvals and Board-Pack for paperless approval and paperless e-meeting respectively, which resulted in substantial reduction in usage of paper in the Bank. The Bank stopped issuance of physical circulars for internal circulation. The Bank started sending statement of accounts through secured emails to willing customers so as to reduce paper consumption.

b) A wet garbage (Bio-Gas) plant was set up at the Corporate Office to process wet garbage / waste from staff canteen and convert into bio-gas and manure which was used for cooking and agricultural purposes.

c) Solar Panels / Tree were installed at Corporate Offices and at some of the Bank's staff quarters. The Bank is committed to increase the usage of renewable (Solar) energy resources for its internal energy requirements.

d) Energy efficient LED light fixtures were installed in all branches/offices.

The Bank started rain water harvesting in its owned buildings. Sewerage Treatment Plant (STP) was set up at Baroda Corporate Centre.

Compliance

Compliance function in the Bank is one of the key elements in its corporate governance structure. The compliance function in the Bank is adequately enabled and made sufficiently independent. The compliance function ensures strict observance of all statutory provisions contained in various legislations such as Banking Regulation Act, Reserve Bank of India Act, Foreign Exchange Management Act, and Prevention of Money Laundering Act etc. as well as ensures observance of other regulatory guidelines issued from time to time. It also ensures adherence to the Bank's internal policies and fair practices code. The Bank has put in place a robust compliance system including a well-documented compliance policy, outlining the compliance philosophy of the Bank, role and set up of the compliance department, composition of its staff and their specific responsibilities.

The compliance function advises senior management and the Board on the Bank's compliance with applicable laws, rules and global standards and keeps them informed of developments in the area. It also educates employees about compliance issues by conducting periodic trainings and workshops for business staff and designated compliance officers. Knowledge management tools for this purpose have also been uploaded on the Bank's website. The Bank has implemented a web based compliance management solution for certification and monitoring of various regulatory, statutory and internal guidelines at each level in the Bank for further strengthening the compliance function. The Bank has also Sautomated the process for obtaining information from the “Insiders" as defined in the SEBI's Code of Fair Disclosure and Conduct.

Amongst several activities monitoring compliances on the domestic front, the domestic compliance function conducts on-site compliance test checks on more than 80 parameters on KYC-AML carried out through Regional Compliance Officers (RCOs) of randomly selected 20% of the branches on a quarterly basis. Off-site compliance test check on around 30 parameters on issues related to KYC/AML guidelines and other parameters of compliance issues is carried out on monthly basis.

Under the EASE Reforms version 2.0, Bank retained the 2nd position across all PSBs in Q1 (June 2019), Q2 (September 2019) and Q3 (December 2019).

In the process of capacity building, the Bank imparted training to all compliance officers and nominated its officials to various external training programmes conducted by reputed institutions on latest developments in the areas of compliance. In order to promote professionalism, the Bank is encouraging staff members to pursue professional courses from reputed institutes like IIBF, ACAMS etc.

There were no significant incidents reported during FY 2020 relating to compliance failure.

KYC/ AML Compliance

The Bank has a well-defined KYC-AML-CFT policy. On the basis of this Policy, KYC norms, AML standards and CFT measures and obligations of the Bank under Prevention of Money Laundering Act (PMLA) 2002, are implemented. The Bank has elaborate systems to generate Cash Transaction Reports (CTRs) electronically for submission to Financial Intelligence Unit-India (FIU-IND). The Bank electronically files Counterfeit Currency Reports (CCRs), Non-profit Organisations Transaction Reports (NTRs) and cross border wire transfer (EFT) reports to FIU-IND, New Delhi on its portal every month within prescribed timelines. The Bank established a Central Transaction Monitoring Unit (CTMU) and put in place an AML Solution for monitoring and detection of unusual transaction patterns in customers' accounts and generation of system based transaction alerts on the basis of predefined alert parameters in the system. System based risk categorisation of customers' accounts is done on half yearly basis. Re-KYC of High Risk Customers is being done on half yearly basis after carrying out money laundering risk categorisation exercise, as per extant guidelines of the RBI. For this purpose, the Bank has developed automated process flow for identification and generation of notices for such customers to notify them for submission of requisite KYC documents.

The Bank has also implemented Aadhar based e-KYC in collaboration with UIDAI on voluntary declaration of customers for e-KYC authentication.

The Bank is in the process of allotting Unique Customer Identification Code (UCIC) to all its existing individual customers as per the RBI guidelines and has implemented a Central KYC Registry for allotment of CKYC Numbers to individual customers, as per prescribed RBI guidelines.

Internal Audit

The Bank's Central Internal Audit Division (CIAD) is responsible for Internal Audit. CIAD administers various streams of audits besides Risk Based Internal Audit (RBIA) of branches and offices. The Audit Committee of the Board oversees overall internal audit function and guides in developing effective internal audit, concurrent audit, IS Audit and all other audit functions of the Bank. The committee monitors the functioning of the audit committee of executives and internal audit department in the Bank.

CIAD operates through eighteen zonal internal audit divisions to carry out internal audit of branches/offices as per the periodicity decided by the RBIA policy. All branches of the Bank are covered under RBIA. Of the 9,482 branches audited during FY 2020, 8,481 branches (89.44%) were in Low Risk, 829 branches (8.74%) were in Medium Risk, 122 branches (1.29%) were in High Risk, 4 branches (0.04%) were in Very High Risk.

The Bank engaged an independent firm as a knowledge partner for comprehensive review of audit function with focus on centralisation of activities using imaging solutions and digitisation. The audit transformation process was completed and audits under the revised approach commenced during the previous financial year.

The audit execution under automated environment commenced for Credit Audit (from 01.09.2019) and Universal Branch (from 01.02.2020) during the FY 2020 and are stabilising, post which whole gamut of audit approach will undergo a change with extensive use of technology, analytics, sampling and advanced audit methodology. Internal audit processes thus will be revamped aided by technology.

Vigilance

Vigilance administration in the Bank is an integral function like other functions of management. While carrying out these functions every endeavour is made that not only procedure and processes are efficient but also ethical, just and fair.

The Bank's vigilance administration comprises of three segments:

a) Preventive Vigilance

b) Punitive Vigilance

c) Surveillance and Detection

While punitive actions are certainly important, preventive and surveillance measures are deemed to be more important as these are likely to be more helpful in reducing occurrence of punitive actions.

Punitive and surveillance functions are undertaken as per well-defined regulations. On the one hand, the Bank ensures that officers and employees at all levels resorting to unfair means, indulging in wilful and malafide practices, lacking in integrity are not allowed to go unpunished, while on the other hand the Bank also ensures that bonafide decisions taken in normal course of business with objectivity and required prudence are protected if the decision is proven wrong in hindsight.

Human Resources

The Bank has a rich talent pool with over 84,000+ employees on its rolls. The Bank continuously undertakes multiples initiatives for strengthening and developing its human resources viz., recruitment, addressing training needs of employees, employee engagement and capability building.

Bank has always been a forerunner in adopting and innovating new concepts, practices and processes. Post amalgamation “Best of Three” approach was adopted in framing the HR policies and schemes in the amalgamated entity.

The various employee-centric initiatives propelled Bank to be recognised as one of the Best 50 companies in India on the PCI (People Capital Index), an index measuring people practices of companies, instituted by a leading HR consultancy firm, M/s Jombay in association with the British Standards Institute (BSI). The Bank received this recognition in FY 2020 for the third year in succession.

The following initiatives have been taken during the year which had a direct and significant impact on Bank's performance:

Manpower Planning and Recruitment

The Bank has built a new scientific manpower planning model designed to estimate skill-based manpower needs at various levels. This would help the Bank in taking key strategic decisions viz. recruitment, deployment, promotions, trainings, etc.

The Bank recruited 1,728 officers and 2,430 business associates through direct recruitment during FY 2020. The Bank also hired specialised staff with expertise in niche and key focus areas to strengthen its capabilities and strength in different domain areas.

Baroda GEMS “Growth and Empowerment Management System”

The Bank had embarked upon an ambitious journey to unlock the potential of human capital. The transformation included a new scientific and objective performance management system named: Baroda GEMS “Growth and Empowerment Management System”.

Baroda Anubhuti Programme

It is an employee engagement programme designed to foster the spirit of team bonding and collaboration, and creating a happy and fun workplace. Various initiatives like employee of the month, spot recognition - capturing ‘WoW' moments, fun hour at all branches/offices, local community service/ social activities are undertaken to enhance the overall employee engagement levels. Mandatory community service programmes are carried out through all branches/offices once in six months.

Under the banner of Baroda Anubhuti, the Bank has also been conducting annual sports day on the 4th Saturday in November every year. Inter zonal sports and cultural tournaments in various disciplines were conducted during the last year which saw very enthusiastic participation from various employees and helped build team bonding and engagement levels amongst employees.

Wellness and Fitness Drives

The Bank has launched many initiatives for managing employee health and well-being, which include a mandatory health checkup scheme for employees and their spouses. The Bank offers all permanent employees with a Group Term Life Insurance cover of Rs. 20 lakh. The medical treatment needs of employees are met through a Group Medical Insurance Policy. The Bank regularly conducts health checkup camps, fitness drives, yoga sessions, etc. to promote the health and well-being of its employees. Bank observed ‘Wellness Month' during October-November 2019 under which preventive health checkups and fitness drives were conducted.

Bank's Creche facility

During the year, as part of its employee friendly welfare measures, the Bank set up a state-of-the-art onsite creche facility at Head Office, Baroda and Zonal Office, Bangalore, in addition to the first creche facility set up in Corporate Office, Mumbai. This creche facility provides day care facilities for the small children of employees.

Learning and Development

The Bank has always believed that learning and development plays a vital role in shaping the organisation's human capital and accordingly it has taken various learning initiatives during the last year. Baroda Gurukul, the Bank's comprehensive learning management system provides learning through various channels like e-learning modules, Baroda Tube, Baroda Radio, Margdarshak, digital library, weekly quizzes etc.

During FY 2020, the Baroda Apex Academy has designed a special programme named “UTSUK” for on boarding employees of amalgamating banks which played an important role in amalgamation. “Baroda Bahubali” a learning competition was launched during the year to introduce gamified learning. “Baroda Samhita”, a compilation of research papers conducted by various academies across India was also launched.

‘We Lead' - Comprehensive Leadership Development Programme

Bank of Baroda has been at the forefront in instituting leading HR policies and processes aimed at all round development of its talent. As part of its ongoing transformation, the Bank aspires to build a pipeline of leaders with the potential to take on leadership roles and play an instrumental role in driving the future growth of the Bank.

With a view to maintain continuity and spirit of the WeLead Leadership Development Programme in Phase I of its roll out, the Bank embarked upon WeLead II in FY2020 which assumes greater significance in the context of the amalgamation. Hence, an important component of the WeLead II was cultural assimilation. The programme also focuses on making the integration successful, realising synergies, maintaining the pace of growth and becoming future ready.

The WeLead II program covers the following number of especially identified people in three levels:

Programme Coverage No. of participants covered
Baroda Senior Leadership Programme General Managers and Dy. General Managers 150
Baroda Emerging Leaders Programme Asst. General Managers 275
Baroda Rising Stars Programme Chief Managers 575

Career Progression

Concerted efforts have been taken by Bank for fostering career progression of employees, for rewarding them for their performance and motivating them. Horizontal movement of officers across different functions and overseas placements are encouraged to provide employees with wider exposure.

HR policies and Development of Systems

The Bank is constantly updating its policies and systems with a view to bringing in relevant changes as may be necessitated on account of environmental changes, employee aspirations and the Bank's overall needs and business goals. During FY 2020, various policies viz., overseas placement policy, hr resourcing policy, employee engagement policy, sports policy, promotion policy, transfer policy and Social Media Policies were updated and put in place to keep up with the changing times.

Under the aegis of staff welfare fund, the Bank has standardised its facilities, increased the number of holiday home rooms and also started holiday home facility in new places like Alibaug and Mysore. The total number of holiday homes now stands at 57. The Bank's Human Resource Centralised Processing Cell (HRCPC) processes all staff loan applications and other online TA/DA claims on the same day of receiving the applications, maintaining a standardised TAT and contributing to employee satisfaction. The Bank has further improved its HR technology platform, “Human Resources Network for Employee Services (HRNes)” with latest features to enhance user experience.

Thrust on Diversity

The Bank follows a non-discriminatory and equal opportunity policy for all its employees. Bank is transparent in all issues relating to promotion, career path, transfer policy and employee benefit / welfare schemes. The Bank has put in place ‘Job Roles' for visually impaired employees. Further, in order to create a more diverse workplace, Bank has been progressively increasing its recruitment of women employees. The percentage of women in the overall staff composition has increased to 25.6% in FY 2020.

In order to retain women employees at all levels and in recognition of the concomitant responsibilities of women, Bank has put in place various facilities to support women employees such as sabbatical leave, health check-up programme for women employees, establishment of creche facility among other initiatives.

Reservation Cell

An exclusive Reservation Cell has been functioning to monitor the reservation and other enabling provisions for SC/ ST/PWD/Ex-Serviceman and OBC employees. Executives in the rank of General Manager are appointed as Chief Liaison Officers for SC/ST/PWD and ex-serviceman employees and OBC employees, respectively, who ensure compliance of various guidelines pertaining to them.

With effect from February 1, 2019, reservation of 10% for Economically Weaker Sections (EWSs) in all exercises for direct recruitment in the Bank is implemented. The Bank provides reservations for Persons with Disabilities (PWDs) at the rate of 4% of the total vacancies arising in Officer, (identified posts) Clerical and Sub-Staff Cadre in a year, as per Government guidelines.

Caste category wise count as on 31.03.20

Cadre SC ST OBC Ex-SM
Officer 7662 3495 12015 587
Clerk 4803 2938 7794 2817
Sub staff 3332 1143 3049 975
Total 15797 7576 22858 4379
% to total staff strength 18.78% 9.01% 27.18% 5.21%

Periodical Meetings: The Bank holds quarterly meetings with the representatives of All India Bank of Baroda SC/ST Employees' Welfare Association and half yearly meeting with the representatives of All India Bank of Baroda OBC Employees' Welfare Association, as per the Government guidelines.

Workshops and Training Programmes: Bank conducts following training programmes every year for members of AIBOBSCST Employees' Welfare Association and AIBOBOBC Employees' Welfare Association and Liaison Officers of SC/ STs and OBCs at Apex Academy, Gandhinagar:

• Pre-Promotion Training for SC/ST candidates

• Workshop on Reservation Policy

• Training programme on disciplinary proceedings

Premises Re-engineering

In an effort to improve the ambience of customer touch points, all identified branches across the country have been refurbished with special emphasis on maintaining a uniform look and feel in all branches. Remaining branches are also being refurbished on similar line. Bank is undertaking the work of construction of Apex Academy, Ahmedabad. It is proposed to have Platinum rated, state-of-the-art training Centre including classrooms, residential accommodation and recreational services.

As the Government of India initiated Swachhata Hi Sewa Abhiyaan, Bank took steps to participate in the event and undertook cleanliness drive inside and outside Bank premises throughout India.

Implementation of Official Language (OL) Policy

Use of Hindi and other Indian Languages for promoting business as well as providing digital products to the customers is a significant characteristic of the Bank's language policy. This approach has been well appreciated by Government of India and regulatory authorities from time to time.

Under various initiatives taken during the year, Bank organised an All India seminar on ‘Role of Public Sector Bank in making India a $5 trillion Economy'. Various books on topics such as ‘Samaavesh Se Samridhhi', ‘Vasooli Kee Daastaan', ‘Retail Rin Margdarshika', ‘MSME Rin Maargdarshika', ‘Opportunities for Credit Flow to Agricultural Sector' and collection of poetries ‘Bargad Kee Chhaon Mein' were published. Role based certification course ‘Bhasha Nirjhar' was introduced and mandatory courses like ‘OL Policy' and ‘Unicode' were made available in Hindi on the Bank's e-learning platform. Hindi Diwas, Vishwa Hindi Diwas and Matrubhasha Diwas were celebrated at various offices/branches across India and overseas.

During the year, Bank under its ‘Maharaja Sayajirao Bhasha Samman Yojana', felicitated Ms. Sweta Singh, senior journalist and famous anchor of ‘AajTak' TV channel for her outstanding contribution in propagating Hindi. Under ‘Maharaja Sayajirao Lokbhasha Samman Yojana', the Bank selected Prof. Bikaram Chaudhary for patronising the tribal dialects of Gujarat like Chaudhary, Ghodia, Gaamit and Kunkanaa.

The Town Official Language Implementation Committee (TOLIC) functioning under the auspices of the Bank at Bareilly, Jaipur, Varanasi, Faizabad, Rajkot and Jodhpur and the ROs/ZOs at Panaji, Ludhiana, Guwahati, Baroda and Patna were selected for awards by the respective regional implementation offices of Government of India.

Corporate Social Responsibility (CSR)

The Bank has a long legacy and tradition of actively contributing to the social and economic development of the communities through various developmental activities. The Bank as a responsible corporate citizen, continuously strives to contribute to the welfare of the society, particularly for the upliftment of the underprivileged sections of the society to make sustainable social changes in their lives. Skill development through training, for gainful employment, human welfare and other social activities for women and farmers continue to remain the Bank's key focus areas. The Bank is helping different organisations engaged in various community development and socio-economic welfare activities for the benefit of weaker sections and rural citizens.

The Bank undertakes CSR activities in two pillars as mentioned below:

• Baroda Swarojgar Vikas Sansthan Trust (BSVS Trust) which runs RSETI centres, imparts skill development training programmes to youth of rural and semi urban areas for generating self employment.

• Donations and/or funding of activities as mentioned in Schedule- VII of Companies Act, 2013.

The Bank has -64- RSETI centres in 10 states/UTs across the country. These centres have conducted 17,922 training programmes and imparted training to 5,03,145 youth, out of which 3,30,213 have already secured employment or have setup their own ventures. Out of 64 RSETI centres, 53 RSETI centres have been graded as “AA/A” (outstanding) based on the overall performance/functioning of the RSETIs.

The Bank has also set up -87- Financial Literacy and Credit Counseling Centres (FLCCs) in twelve states/UTs which provide financial counseling services and education to the people in rural and urban areas about various financial products and services available from the formal financial sector. These centres also take up activities that promote financial literacy, awareness about banking services, digital banking, financial planning and amelioration of debt-related distress of an individual.

Domestic Subsidiaries and Joint Ventures BOB Financial Solutions Ltd.

BOB Financial Solutions Limited (BFSL, formerly known as BOBCARDS Limited) is a wholly owned subsidiary of the bank. It is a non-deposit taking Non-Banking Finance Company (NBFC). BFSL was established in the year 1994 to cater to the need of rapidly growing credit card industry. BFSL was the first non-banking company in India to issue credit cards. The company's core business is credit card issuance. It also provides support to the Bank by carrying out its merchant acquiring operations.

New credit card acquisition in FY 2020 stood at 2.47 lakh which resulted into an active card base of 4.53 lakh ending March 31, 2020. BFSL was the 10th largest issuer of credit cards out of a total of 32 credit card issuers in FY 2020.

BFSL continued to issue pre-approved credit cards to Bank's customers under the tripartite partnership between the Bank, BFSL and Trans Union CIBIL. BFSL used a network of more than 2,000 sales representatives to cover the top 2,500 bank branches for focused credit card acquisition from both preapproved as well as walk-in customers.

Retail spends on the customer base increased by more than 80% during FY 2020, backed by marketing alliances and partnerships with top brands in both offline and online spend categories.

BFSL continues to invest in technology initiatives to improve customer experience (viz. Green Pin, robust execution platform, digital adoption, revamped website and customer service portal with robotics-based solutions for flaw less processing)

BOB Capital Markets Ltd.

BOB Capital Markets Ltd. (BOBCAPS), a wholly owned subsidiary of the Bank is a SEBI registered Category-I merchant banker as well as a stock broker with National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). BOBCAPS offers a wide spectrum of financial services that includes Initial Public Offerings, Debt Syndication, Stressed Asset Resolution, Business Valuation, Mergers and Acquisitions and Stock Broking. It has five lines of businesses viz. Investment Banking - Equity; Investment Banking - Debt; Institutional Broking, Retail Broking and Wealth Management.

During FY 2020, all business verticals of the subsidiary delivered healthy growth as BOBCAPS continued on its path of scaling up. Under Investment Banking - Debt, many debt syndications and stressed asset resolution transactions were completed during the year. While equity capital market activity was subdued during the year, Investment Banking - Equity built up a good pipeline of 10 mandates for IPOs / FPOs / OFS, PE fund raise and M&A transactions. Institutional Broking ramped up client empanelment, through quality research, sales and a robust technology platform. It commenced coverage of foreign institutional investors. In Retail Broking, rise in client acquisitions and business volumes were driven by enhanced products and services like 3-in-1 demat, trading and bank account, prepaid brokerage, online account opening platform and quality research. The firm's investment advisory team supports the wealth management vertical of the Bank.

Baroda Global Shared Services Ltd.

Bank's wholly owned captive “Baroda Global Shared Services” established in FY 2017, operates from 4 locations (Mumbai, Gandhinagar Gift City, Bengaluru and Hyderabad) and has more than 1400+ full time equivalents (FTEs) in nonvoice (transaction processing) and 850 FTEs in voice (Call Centre with multilingual capabilities).

Functions such as trade and forex operations, account management services , mortgage based lending operations, agriculture loan processing, credit card operations, digital banking operations (reconciliations / vendor management / ATM monitoring / IPG) and pension services have been centralised. Further, centralisation of activities such as migration of collection services, CMS operations, international operations, Aadhar enrolment centres, establishing login shops at SMS and MSME lending operations is continuing.

Barodasun Technologies Ltd.

Barodasun Technologies Limited has been incorporated as a wholly owned subsidiary of Bank of Baroda. The company was registered on July 5, 2017 with the Registrar of Companies, Mumbai, and Maharashtra. The company has been formed to provide, system integrator / consultancy services on matters relating to IT enabled business solutions / IT software product implementation across various lines of business for the Bank

It is engaged in the programme management / project management services to implement enterprise-wide IT projects and development of financial products and solutions to cater to various business needs across different business verticals of the Bank

The Nainital Bank Ltd.

The Nainital Bank Limited (NBL), originally promoted by Late Bharat Ratna Pandit Govind Ballabh Pant and others in 1922, became a subsidiary of Bank of Baroda in the year 1973. The Bank's holding in Nainital Bank Ltd. is 98.57%. NBL has its registered office at Nainital and has operations in five states namely, Uttarakhand, Uttar Pradesh, Delhi and NCR, Haryana and Rajasthan. NBL has 141 branches as on March 31,2020.

The total business of NBL increased to Rs 1 1,797 crore on March 31, 2020 from Rs 1 0,931 crore as on March 31, 2019. The Bank incurred a net loss of Rs 59.61 crore in FY 2020 against a net profit of Rs 26.89 crore during the previous year on account of enhanced provisioning requirements even though the operating profit of the Bank increased from '109.30 crore in FY 2019 to '114.27 crore in FY 2020.

Baroda Asset Management India Ltd.

Baroda Asset Management India Limited (Baroda AMC) is a wholly owned subsidiary of the Bank with effect from September 28, 2018. Baroda AMC acts as the investment manager to Baroda Mutual Fund (Baroda MF), a mutual fund registered with the Securities and Exchange Board of India. The average assets under management (AUM) of Baroda MF for FY 2020 were Rs 1 1,204 crore, a decline of 9% over the previous year due to fall in AUM in debt segment. The equity AUM within the overall AUM, grew by 30% over previous year. Baroda AMC continues to expand its third-party distribution network, with particular focus on IFAs. The company launched a few new funds during the year.

The Bank and BNP Paribas Asset Management Asia Ltd (BNP Asia) have signed binding agreements on October 11, 2019 to merge their Asset Management and Trustee Companies in India. Baroda Trustee India Private Ltd is the dedicated trustee company for the mutual funds managed by Baroda Asset Management India Limited.

IndiaFirst Life Insurance Company Ltd.

Headquartered in Mumbai, IndiaFirst Life Insurance Co. Ltd., is one of the country's youngest life insurance companies, with a paid-up share capital of Rs 635 crore. The company is promoted by two of India's largest public-sector banks - Bank of Baroda and Andhra Bank, which hold 43.3% and 29.5% stake in the company respectively along with 27.2% stake held by Carmel Point Investments India Private Limited incorporated by Carmel Point Investment Ltd, a body corporate incorporated under the laws of Mauritius and owned by private equity funds managed by Warburg Pincus LLC.

In FY 2020, IndiaFirst Life became the fastest growing Life Insurance Company in Individual New Business APE (Annual Premium Equivalent) with 25% YoY growth as compared to Life Insurance YoY growth of 6%. The company is currently ranked 12th in Individual New Business APE (Annual Premium Equivalent), among the private players with assets under management (AUM) at Rs 1 4,723 crore as on March 31,2020.

IndiaFirst Life was certified as a Great Place to Work (GPTW), a recognition considered as the gold standard for defining great workplaces across business, academia and government organisations along with being recognised among the ‘25 Best Workplaces in BFSI' by GPTW BFSI Survey, ‘India's Most Admirable Brands 2019-20' by The Brand Story and ‘Customer Service Provider of the Year' award at India Insurance Summit and Awards 2019.

India Infradebt Ltd.

India lnfradebt Limited (Infradebt) is the first Infrastructure Debt Fund (IDF) - NBFC. It was sponsored by Bank of Baroda along with ICICI Bank Limited. Citicorp Finance (India) Limited and LIC of India are its other shareholders. It has been rated AAA by CRISIL, ICRA and India Ratings since its inception. It finances the relatively safe, completed infrastructure projects which have achieved one year of commercial operations. Further, Infradebt enjoys 100% income-tax exemption. The synergy with the Bank arises from its focus on lending to strong, stable infrastructure projects - mainly NHAI road projects and renewable energy projects. The company has delivered healthy growth in its first full six years of operations, ending FY 2020. Its loan book as on March 31, 2020 was Rs 1 1,565 crore and net profit for FY 2020 was Rs 259 crore (as per Indian GAAP).

A brief summary of domestic subsidiaries and Joint Ventures is as below

Entity Owned funds Total assets Net profit Offices Staff
BOB Financial Solutions Ltd 196.36 572.17 (31.53) 38 561
BOB Capital Markets Ltd. 152.98 160.71 (0.80) 1 104
BarodaSun Technologies Limited 4.55 4.45 (0.09) 1 6
Baroda Global Shared Services Ltd. 16.03 17.19 4.00 5 1019
The Nainital Bank Ltd. 556.01 8440.39 (68.07) 4 971
Baroda Asset Management India Ltd. 65.01 80.02 0.85 5 76
Baroda Trustee India Pvt. Ltd. 0.10 0.15 0.01 1 0
IndiaFirst Life Insurance Company Ltd. 716.93 15273.30 (97.42) 29 2772
India Infradebt Limited 1866.82 12,289.03 259.05 1 21

Awards and Accolades

Date Awards 2019-20
11.06.2019 Bank awarded "National award for SHG bank linkage 2018-19 "by DAY-NRLM, Government at New Delhi.
29.06.2019 Award from “Governance Now” in 4th India Banking Reforms Conclave and BFSI Awards 2019 at Mumbai.
29.06.2019 Skoch Order of Merit 2019-Gold Award for Digital Financial Inclusion at New Delhi.
Skoch Award 2019-“BANKING SILVER for Digital Financial Inclusion” at New Delhi
06.07.2019 Bank was bestowed two Awards at World HRD Congress organised by the Human Resource Development Management Committee
1. National Award for Excellence in Training and Development under category - “Excellence in Training and Development Award.”
2. National Awards for Best in Class Learning and Development - under category “Best Deployment of a Learning Management System”
26.07.2019 Bank awarded ‘The Experience Advantage for Delivering Lasting Moments' (customer interactions) in the PSU category by Kantar IMRB.
09.08.2019 Bank was awarded as the Most Trusted Brand in the Nationalised - Banks category by Reader's Digest TRUSTED BRAND SURVEY
09.08.2019 Bank bagged Silver at SAMMIE 2019 - Best Social Media Brand Award (BFSI - banking category)
14.09.2019 The Bank received First Prize consecutively for third year in linguistic region ‘B' under RajbhashaKirtiPuraskarYojna of Government of India.
25.11.2019 General Manager (Marketing, PR and Wealth Management), Bank of Baroda was conferred with “Most Influential Global Marketing Leaders Award”, by World Marketing Congress, at TajLands end Hotel.
31.12.2019 Bank was awarded the ‘Global - Lowest Gross Fraud (Issuer)' by Visa at the Global Service Quality Awards 2018
04.01.2020 Bank secured 1st position and has been awarded Top Performer in New Accounts Opened under PSU Bank category, at NSDL Star Performer Awards 2019, at TajLands End, Mumbai
13.01.2020 Bank received “The Excellence Award under Gold Category for outstanding performance in implementation of NBCFDC Loans in the public sector schemes “on the occasion of 28th foundation day of NBCFDC
Date Awards 2019-20
31.01.2020 Bank received the IPE award for "Best Practices in CSR Awards-2020" For Livelihood Initiative.
Indian Banks' Association (IBA) Banking Technology Conference, Expo and Awards 2020 at Hotel Trident, Nariman Point
1. Best Technology bank of the year - Large Bank - Runner Up
07.02.2020 2. Best payments initiatives Amongst Public Sector Banks -Runner Up
3. The most customer centric bank using technology - Large Bank -Joint Runner Up
Baroda Rajasthan KshetriyaGramin Bank received Best Digital Financial Inclusion amongst RRBs and Technology Bank of the year amongst RRBs.
10.02.2020 The Bank was awarded the FINNOVITI 2020 Award for its sound based payment system - “TONETAG”.

Dividend Distribution Policy

RBI Vide notification RBI/2019-20/218 DOR.BPBC. No.64/21.02.067/2019-20 dated April 17, 2020 has advised banks, due to environment of heightened uncertainty caused by COVID-19, to conserve capital, retain their capacity, support the economy and absorb losses. Accordingly, Bank has not declared dividend pay outs from the profits pertaining to the financial year ended March 31,2020.The policy is given in this Annual Report and is also available on the Bank's website at https://www.bankofbaroda.in/writereaddata/ images/pdf/dividend-distribution-policy-of-the- bank-25-04-2019-17042020.pdf.

Board of Directors (Appointment /Cessation of Directors during the year)

Appointments

Shri Murali Ramaswami was appointed as Executive Director w.e.f. October 1, 2019 by the Central Government u/s 9 (3) (a) of The Banking Companies Acquisition and Transfer of Undertakings) Act, till his superannuation i.e., 31.12.2020, or until further order, whichever is earlier.

Prof. Biju Varkkey was appointed as Part Time Non Official Director w.e.f. October 21, 2019 by the Central Government u/s 9 (3) (h) and 9(3-A) of The Banking Companies Acquisition and Transfer of Undertakings) Act, 1970 for a period of -1- year or until further orders, whichever is earlier.

Shri Sanjiv Chadha was appointed as Managing Director and CEO w.e.f. January 20, 2020 by the Central Government u/s 9 (3) (a) of The Banking Companies Acquisition and Transfer of Undertakings) Act, 1970 for a period of -3- years or until further orders, whichever is earlier.

Shri Amit Agrawal was nominated as Government Nominee Director w.e.f. January 25, 2020 by the Central Government u/s 9 (3) (b) of The Banking Companies Acquisition and Transfer of Undertakings) Act, 1970, to hold the post until further orders.

Cessations

Prof. Biju Varkkey ceased to be Non-Executive Director w.e.f. April 25, 2019 on completion of his tenure of 3 years.

Shri Gopal Krishan Agarwal ceased to be Director nominated under Chartered Accountant Category w.e.f. July 26, 2019 on completion of his tenure of 3 years.

Smt. Papia Sengupta ceased to be Executive Director w.e.f. October 1,2019 upon attaining the age of superannuation on 30th September, 2019.

Shri Debasish Panda ceased to be Government Nominee Director w.e.f. January 25, 2020 and Shri Amit Agrawal was appointed in his place.

Shri P. S. Jayakumar ceased to be Managing Director and CEO w.e.f. October 13, 2019 on completion of his tenure.

Board Evaluation

Bank is following Government of India guidelines dated August 30, 2018 for PSB Governance Reforms - Enhancing governance through improved effectiveness of non-official directors.

Auditors' Compliance Certificate on Corporate Governance:

The Auditors' Compliance Certificate regarding the compliance of the conditions of Corporate Governance for the year 2019-20 is annexed with this report pursuant to “Part E” of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Business Responsibility Report

Business Responsibility Report as required by SEBI has been hosted on the website of the Bank (www.bankofbaroda. co.in). Any member interested in obtaining a physical copy of the same may write to the Company Secretary of the Bank.

Directors' Responsibility Statement

The Directors confirm that in the preparation of the annual accounts for the Financial Year ended March 31,2020:

a) The applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

b) The accounting policies framed in accordance with the guidelines of RBI were followed and the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for that period;

c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of applicable laws to the Bank for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

d) The directors had prepared the annual accounts on a going concern basis; and

e) The directors had ensured that internal financial controls followed by the Bank are adequate and were operating effectively.

Explanation: For the purposes of this clause, the term “internal financial controls” means the policies and procedures adopted by the Bank for ensuring the orderly and efficient conduct of its business, including adherence to Bank's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information;

f) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Acknowledgements

The Directors place on record their appreciation for the contributions made by the outgoing Managing Director and CEO Shri P S. Jayakumar and other outgoing Directors viz., Shri Gopal Krishan Agarwal, Smt. PapiaSengupta and Shri Debasish Panda. The Directors express their sincere thanks to the Government of India, RBI, Securities and Exchange Board of India, other regulatory authorities and the overseas regulators for their continued co-operation, guidance and support. The Directors would like to take this opportunity to express sincere thanks to valued clients for their continued patronage and support.

The Directors acknowledge with deep appreciation the cooperation extended by all shareholders, banks and financial institutions, rating agencies, stock exchanges and all well-wishers in India and abroad.

The Directors also take this opportunity to place on record deep appreciation for the hard work and dedication of the employees of the Bank.

For and on behalf of the Board of Directors,

Sanjiv Chadha

Managing Director and CEO

   

   

Bank of Baroda Company Background

Hasmukh AdhiaSanjiv Chadha
Incorporation Year1908
Registered OfficeBaroda House,Mandvi
Vadodara,Gujarat-390006
Telephone91-0265-2361724,Managing Director
Fax91-0265-2361824
Company SecretaryPrashant K Agarwal
AuditorSinghi & Co/G M Kapadia & Co/S R Dinodia & Co LLP
Face Value2
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarKFin Techologies Pvt Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Bank of Baroda Company Management

Director NameDirector DesignationYear
Prashant K Agarwal Company Secretary 2020
Soundara Kumar Director(Shareholders) 2020
Shanti Lal Jain Executive Director 2020
Vikramaditya Singh Khichi Executive Director 2020
Srinivasan Sridhar Director(Shareholders) 2020
Hasmukh Adhia Chairman (Non-Executive) 2020
Sanjiv Chadha Managing Director & CEO 2020
Amit Agrawal Nominee (Govt) 2020
Ajay K Khurana Executive Director 2020
Debadatta Chand Executive Director 2020
Parvathy V Sundaram Director 2020

Bank of Baroda Listing Information

Listing Information
BSE_500
BSE_200
BSEDOLLEX
BSE_PSU
CNX500
CNXMIDCAP
PSUBANK
CNXMID50
CNX200
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEFINANCE
BSEBHARA22
MID150
LMI250
MSL400
BSEEVI
NFTYMSC400

Bank of Baroda Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/Discount on Adv/BillsRs.00054115.7725
Income on Investments Rs.00018097.3572
Others Rs.0002001.7928
Interest on bal with RBI Rs.0001768.7325

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