Bank of Baroda
Directors Reports
"Your Directors have pleasure in presenting the One Hundred and
Fourteenth 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, 2022 (FY 2022)."
Financial Performance
(Rs. in crore)
| Particulars |
Year ended March 31, 2021 |
Year ended March 31, 2022 |
| Deposits |
9,66,996.93 |
10,45,938.56 |
| of which - International Deposits |
1,08,583.81 |
1,18,927.99 |
| Domestic Deposits |
8,58,413.12 |
9,27,010.57 |
| of which- Current Account Deposits |
61,609.03 |
68,779.64 |
| Savings Bank Deposits |
3,06,418.54 |
3,41,343.27 |
| CASA Deposits |
3,68,027.57 |
4,10,122.92 |
| Domestic CASA to |
42.87 |
44.24 |
| Domestic Deposits (%) |
|
|
| Net Advances |
7,06,300.51 |
7,77,155.18 |
| of which- Domestic Advances |
6,05,615.80 |
6,53,381.55 |
| International Advances |
1,00,684.71 |
1,23,773.63 |
| Total Assets |
11,55,364.77 |
12,77,999.83 |
| Net Interest Income (NII) |
28,809.02 |
32,621.34 |
| Other Income |
12,933.97 |
11,483.95 |
| of which-Trading gains |
3,375.97 |
2,728.76 |
| NII + Other Income |
41,742.99 |
44,105.29 |
| Operating Expenses |
20,543.66 |
21,716.44 |
| Operating |
21,199.34 |
22,388.85 |
| Provisions (Other than Tax) |
15,643.33 |
13,002.41 |
| of which- Provisions for NPAs & Bad debts written off |
12,407.71 |
14,640.12 |
| Profit Before Tax |
5,556.00 |
9,386.44 |
| Provision for Tax |
4,727.05 |
2,114.16 |
| Net Profit |
828.95 |
7,272.28 |
| Appropriations/ Transfers |
|
|
| Statutory Reserve |
207.22 |
1,814.34 |
| Capital Reserve |
676.90 |
523.35 |
| Revenue and Other Reserves |
|
|
| I) General Reserve |
-341.79 |
827.40 |
| II) Special Reserve u/s 36 |
|
|
| (I) (viii) of the Income Tax Act 1961 |
286.56 |
250.00 |
| III) Investment Reserve Account |
0.00 |
0.00 |
| IV) Investment Fluctuation Reserve |
|
2,368.42 |
| V) Statutory Reserve (Foreign) |
0.06 |
14.93 |
| Proposed Dividend |
0.00 |
1,473.84 |
(Rs. in crore)
| Key Performance Indicators |
FY 2021 |
FY 2022 |
| Average Cost of Funds (%) |
4.11 |
3.64 |
| Average Yield on Funds (%) |
6.62 |
6.49 |
| Average Interest Earning Assets |
10,64,844 |
10,77,177 |
| Average Interest Bearing |
10,14,762 |
10,24,804 |
| Liabilities |
|
|
| Net Interest Margin (%) |
2.71 |
3.03 |
| Cost-Income Ratio (%) |
49.22 |
49.24 |
| Return on Average Assets |
0.07 |
0.60 |
| (ROAA) (%) |
|
|
| Return on Equity (%) |
1.50 |
11.82 |
| Book Value per Share (Rs. ) |
106.72 |
118.97 |
| Basic EPS (Rs.) |
1.78 |
14.06 |
Total deposits of the bank increased to Rs.10,45,939 crore during FY
2022 from Rs.9,66,997 crore during FY 2021, there by registered a growth of 8.2% on a YoY
basis. The domestic CASA of the bank recorded a growth of 11.4% on YoY basis, to reach to
the level of Rs.410,123 crore, during FY 2022. The Domestic Deposit also marked a growth
of 8% on a YoY basis, which was increased to Rs.9,27,011 crore, during the FY 2022. The
Net advance of the bank increased to Rs.7,77,155 crore during FY 2022 from Rs.7,06,301
crore during FY 2021, there by recorded a growth of 10% during the period. The growth in
Advance portfolio was supported by Retail Advance (organic) which grew by 16.8%,
Agriculture advance which grew by 10.3%, MSME (organic) segment which grew by 5.4%, on a
YoY basis during FY 2022. The net interest margin (NIM) improved by 32 bps to 3.03% during
FY 2022 from 2.71% during FY
2021. Operating profit for the Bank rose to Rs. 22,389 crore during FY
2022 from Rs.21,199 crore during FY 2021, an increase of 5.6% during the period.
Total provisions (other than tax) and contingencies declined to Rs.
13,002 crore during FY 2022 by 16.9% from Rs. 15,643 crore during FY 2021. Provisions for
Non- Performing Assets (NPA) stood at Rs.14,640 crore during FY 2022 compared with
Rs.12,408 crore during FY 2021. The Bank posted a net profit of Rs.7,272 crore during FY
2022 from Rs.829 Crore during FY 2021, marked a growth of 777% on a YoY basis.
Capital Adequacy Ratio (CAR)
(Ratios in %
|
As on 31.03.2021 |
As on 31.03.2022 |
| Capital Adequacy Ratio Basel III |
14.99 |
15.84 |
| CET I |
10.94 |
11.59 |
| Tier I |
12.67 |
13.34 |
| Tier II |
2.32 |
2.50 |
The Capital Adequacy Ratio (CAR) of the bank increased to 15.84% as on
March 31, 2022 from 14.99% as on March 31, 2021. CET-1 ratio also increased to 11.59%
during FY 2022 from 10.94% during FY 2021. The consolidated group capital adequacy ratio
increased to 16.33% as on 31.03.2022 as compared with 15.74% as on 31.03.2021.
During FY 2022, The Bank issued Additional Tier I (AT-I) capital bonds
of Rs.2,749 crore during FY 2022.
Net worth
The Bank?s net worth as of March 31, 2022 was Rs.61,521.92 crore
comprising of paid-up equity capital of 1,035.53 crore and reserves of 60,486.39 crore
(excluding revaluation reserves, foreign currency translation reserves and other
intangible assets). The book value of the share (Face Value 2) was 118.97 as on March 31,
2022
Provisions towards Retirement and other benefits
During FY 2022, the Bank made provision towards contribution to
gratuity (Rs. 267.15 crore), pension funds (Rs. 2387.40 crore), leave encashment,
additional retirement benefits and other benefits (Rs. 107.78 crore). Total provisions
under these categories amounted to Rs.2762.33 crore during FY 2022.
Dividend Distribution Policy
Board of Directors of the Bank has recommended a dividend of Rs. 2.85
per share for the financial year ended March 31, 2022. The total outgo in the form of
dividend will be Rs. 1,473.84 crore. The payment of dividend is subject to requisite
approvals.
Management Discussion and Analysis Global Economy
The global economy emerged stronger from the Covid-19 pandemic, lifted
by pent-up demand and improvement in industrial activity. Further, fast pace of
vaccination in many countries supported rapid normalisation of economic activity. GDP
growth bounced back from a contraction of 3.1% in 2020 to 6.1% in 2021. The pickup in
growth was led by Emerging and Developing Economies (EMDEs) where growth picked up to 6.8%
in 2021. Within this group, developing Asia outperformed with GDP growth at 7.3%, led by
strong rebound in GDP growth in China and India at 8.1% and 8.9% respectively.
Improvement was also seen in GDP growth in Advanced Economies (AEs),
registering growth of 5.2%. This was led by a sharp rebound in GDP growth in the US at
5.7%. On the other hand, growth in Japan remained relatively muted at 1.6% while the Euro
area rebounded by 5.3%. Even within Euro Area, GDP growth in France recovered to 7%, while
Germany?s GDP expanded by only 2.8%.
There was also significant improvement global growth recovered. World
trade volume rose by 10.1%. Here again, EMDEs outperformed, noting a much sharper rebound
in trade volumes than AEs. Commodity prices too increased as demand picked up. Oil prices
rose by 67.3% led by a pick-up in demand that was not matched by supply due the limited
investments made by the oil producers during the pandemic time. Non-fuel prices too
increased by 26.8% as supply-chain bottlenecks lingered. As a result, global inflation
rose in 2021. Inflation averaged about 3.1% in AEs, and much higher at 5.9% for EMDEs.
Global growth outlook is once again on shaky grounds due to the
Russia-Ukraine war. The war has led to a sharp rise in already elevated global commodity
prices thus intensifying the inflationary pressures. This has prompted central several
countries to cut back on the expansionary monetary policy and turn increasingly hawkish.
Debt levels remain at record-high levels in several countries. As a result, global growth
outlook has become more uncertain, with risks tilted to the downside. Global GDP growth is
projected at 3.6% in 2022. Importantly, growth in EMDEs is expected to slow down to 3.8%
in 2022 led by Russia and China. Russia?s GDP is expected to contract sharply by 8.5%
as a result of the war and international sanctions on its crucial energy sector. In China,
GDP growth is expected to moderate to 4.4% as recent flare-ups in the pandemic and
resulting lockdowns, especially some in key industrial areas, threaten to derail
industrial activity and put further strain on supply chains. Growth in AEs is also
expected to slow down to 3.3% in 2022 led by US, Euro Area and UK. Growth is expected to
slowdown in the US as monetary support is withdrawn at a much faster pace. In Euro Area,
countries such as Germany and Italy with large manufacturing base and higher dependence on
Russian energy imports, growth is expected to slow down markedly. Even in UK, tight
financial conditions coupled with high inflation is likely to keep growth muted. Global
inflation is also expected to remain elevated at 5.7%.
Indian Economy
India?s economy grew by 8.7% in FY 2022 compared with a
contraction of (-) 6.6% in FY 2021. Apart from favorable base, improvement in consumption
expenditure (7.9% against -6% in FY'21), investment (15.8% from -10.4% in FY 2021),
exports (24.3% compared with -9.2% in FY'21) and imports (35.5% from -13.8%) have
contributed the most. Ebbing of the third wave of Covid-19, resumption of economic
activities and universal vaccination has supported the growth story. RBI had expected GDP
growth at 9.1% in FY'22.
Industrial activity recovered on the back of low base to 11.3% in
Apr-Mar?22 compared with a decline of (-) 8.4% in Apr-Mar?21. This was led by
manufacturing sector which registered an increase of 11.7% in Apr-Mar?22 (-9.6% in
Apr-Mar?21). Mining and electricity activity also improved by 12.2% and 7.9%
respectively for the same period. Services activity improved in FY22 on the back of higher
GST collections, port cargo volume, rail freight, property sales and domestic passenger.
The revival in growth was also positive for the government as the fiscal deficit remained
close to the budgeted number at
6.9% in FY 2022. The same for FY 2023 has been targeted at 6.4%. This
was achieved mainly due to buoyancy in overall tax revenue which were higher under the
revised estimates at Rs.20.79 lakh crore in FY 2022 against a budgeted number of Rs.17.88
lakh crore. Higher outlays on certain essentials like food and fertilizers could be
achieved without any untoward pressure on the government finances.
While overall growth did rebound in FY 2022 on the back of favourable
base, however the pace of improvement was dampened specially in Q4FY 2022 on the back of
global supply chain disruptions on account of Russia-Ukraine war.
CPI inflation moderated to nearly 5.5% in FY 2022 from 6.2% in FY 2021.
However, in Q4FY 2022 it had accelerated to 6.3% compared with 4.9% in Q4FY21. It had also
edged upwards beyond the MPC?s upper tolerance band during this period. This was on
account of supply related disruptions and surge in commodity prices across the globe.
Build up in food inflation was visible in Q4FY 2022 at 6.3% as against 3.6% in Q4FY 2021.
Even core inflation had edged up to 6.1% in Q4FY 2022 especially on the back of surge in
crude oil prices and pick-up in demand.
The external situation was comfortable even though capital flows on
account of FPI was strained in the face of the current account balance turning negative.
Forex reserves, which is the summary indicator of all developments on this front increased
by Rs.40.6 bn to reach Rs.617.6 bn as of March 25, 2022. The rupee, on a point to point
basis, ended at Rs.76.18 on 25th March 2022 compared with Rs.72.40 a year back, thus
showing a depreciation of 5.2%. This was in line with the depreciation witnessed across
most currencies due to the strengthening of the dollar.
Going forward, RBI expects growth at 7.2% in FY 2023. The upside to
these estimates stem from the uptick in private investment and boost to domestic demand,
also for contact intensive sectors. However, uncertainty due to geopolitical developments
with hardening of commodity prices, surge in crude oil prices along with spread of new and
contagious.
Covid-19 variants continue to pose a significant risk to these
estimates.
Developments in Indian Banking
Credit growth of Scheduled Commercial Banks (SCBs) improved to 9.6% as
of March 2022 from 4.6% as of March 2021. This explains steady rebound of the credit
off-take.
Industry registered a significant compared with a contraction of (-)
0.4% last year. Across the board uptick was seen for industries with micro and small
(21.5% from 3.9% in Mar?21), medium industries (71.4% from 34.5%) reporting a
substantial increase. Large industry witnessed a turnaround from -2.5% in FY21 to +0.9% in
FY 2022. Credit off-take to services sector reported an increase of 8.9% as of March 2022.
Consumer loans too noticed an improvement with much higher growth at 12.4% as of March
2022 from 10.7% in March 2021.
Growth in deposits was slower in FY 2022 at 8.9% as against 11.4% in FY
2021. While growth was higher in FY 2021 due to the pandemic where household?s
preferred the safety of bank deposits, the stock market book in FY 2022 did shift
household funds to the equity segment as well as mutual funds where expected returns were
perceived to be much better in an environment of low interest rates.
During the year the repo rate remained unchanged at 4%. The overnight
MCLR came down marginally from 6.55/7.05 as of March 26, 2021 to 6.45/7.00% as on March
25, 2022. The term deposit rate for deposit of above 1 year averaged 4.90/5.50% and
5.00/6.0% respectively. The 10-year Gsec rate increased by around 50 bps from 6.32% to
6.83% during this period. The interest rate environment can be viewed against the
background of central government borrowing of Rs.11.27 lakh crore in FY22 (Rs.13.70 lakh
crore in FY21) and gross state government borrowing of Rs.6.70 lakh crore (Rs.7.78 lakh
crore) in FY 2022.
There was also substantial improvement witnessed in the asset quality
of banks which improved to 6.9% as of September. PSBs had a ratio of 8.8% and private
banks 4.6%. The annualized slippage ratio for the Banking system as of September 2021 was
3.6%.
In order to enhance liquidity and with the objective to revive sectors,
RBI had extended its on tap TLTRO scheme until Dec?21. Further, RBI had also provided
fresh support of Rs.50,000 crore to All India Financial Institutions (AIFIs) for new
lending. It was also suggested to extend the Priority Sector Lending classifications to
Sep?21 as this will ensure credit availability towards the following
sectors-Agriculture, Housing and MSME. RBI has also extended to continue to enhance the
interim WMA limit for states, so as to help them to manage their finances after facing
difficulties during the pandemic, till Sep?21.
RBI had created an on-tap liquidity window with tenors of up to 3-years
with objective to boost liquidity and separate window for contact intensive sectors was
also proposed at repo rate till Jun?22. In order to facilitate credit transfers, NACH
(National automated clearing house) will be made available throughout the week.
RBI enhanced the limit on e-RUPI vouchers issued by Governments to
downside Rs.1,00,000/-per voucher from Rs.10,000 earlier, and also allowed its use
multiple times. To help finance MSMEs, the NACH mandate limit for TReDS settlements was
raised to Rs.3 crore. Transaction limit for payments through UPI for Retail Direct Scheme
and IPO applications was also raised from Rs.2 lakh to Rs.5 lakh.
The overall performance of your company should be viewed against this
background. improvement at 7.1%
EASE 3.0
EASE reforms agenda has contributed immensely towards the Bank?s
journey in achieving efficiency and ease of operations in almost all areas of operations,
helping in providing an enhanced experience to its customers.
The action points under each phase of EASE Programme envisaged
deep-rooted transformation in approach and building new capabilities.
In Government of India?s EASE 3.0 index, Bank secured the
"Second" position among all Public Sector Banks. As per the index, significant
progress is themes "Smart Lending for Aspiring India", "Tech-enabled ease
of Banking", "Institutionalised Prudent Banking", "Governance and
Outcome centric HR" and "Deepening FI and Customer Protection".
Bank ranked ‘First? in categories of "Smart Lending for
Aspiring India" and "Institutionalised Prudent Banking" under EASE 3.0
Index.
Bank secured the "second" place in ‘Tech-enabled ease of
Banking? and third place in ‘Deepening FI and Customer Protection?
categories under EASE 3.0 Index.
EASE 4.0
With innovative technologies & tools such as AI, Automation, data
analytics and technical support services, critical back-end functions including document
verification, background checks and seamless loan disbursals, making the process not only
efficient, paperless and non-cumbersome, but also makes the customer feel in-charge of the
entire process. In Government of India?s EASE 4.0 index, Bank secured 1st position
for the first three quarters (Q1, Q2, & Q3) of FY 2022 among all the Public Sector
Banks.
The Bank topped in the theme i.e. "Smart Lending for Aspiring
India" for all the three quarters and improved the performance in the Theme
"Governance and Outcome-centric HR".
Project BOB-NOWW: The journey to shape the future Bank of Baroda
continues
Last year, Bank of Baroda embarked on a transformation journey -
BOB-NOWW - to build an industry-first operating model through new ways of working and a
reimagined retail network. Ever since, the project has successfully executed a variety of
initiatives, bringing superior, tailored services to our customers, unlocking growth
potential across businesses, and creating value for all our stakeholders.
The impact of these initiatives is captured below:
Unlocking business potential: The Bank is enhancing its business
offerings across revenue lines with a special focus on Corporate and Wealth verticals.
Marquee BOB-NOWW initiatives such as the Corporate Sales War room and Fee Booster Campaign
simplified and speeded up processes within the Corporate Banking vertical, contributing
significantly towards the 15% YoY growth in overall fee income this year. Next, the
spotlight will be on the growing mid-corporate segment, where the Bank plans to strengthen
its operating model, branch network and credit decision making process. Meanwhile, the
Wealth vertical closed the year with a 46% YoY jump in revenue at INR 317 crore, on the
back of superior customer service and improved offerings in its Radiance business.
Launching a central Digihub for remote support, a Sales War Room to drive the investment
and insurance business and adding new talent further boosted customer-centricity and
business focus.
Reimagined retail distribution network: Staying true to its vision
of ‘BOB everywhere?, the Bank accelerated efforts to ramp up the total number of
touch points, adding significantly to its BC intheBankacrossfive network this year. As of
March 2022, the total number of touch points grew to over 41,000, jumping close to 32
percent YOY. It also introduced new-age, compact and digital branch formats to offer
seamless customer experience. Furthermore, the expanded BC network and revamped branches
are being leveraged to allow easy accessibility to banking services such as home, auto and
personal loans, credit cards, current accounts, etc., in rural areas.
Digital led experience: The Bank moved a step closer to its goal of
digitizing critical banking services and processes, starting with the launch of 25
self-assisted customer journeys that enable faster and straight-through processing for
transactions. It also piloted a video servicing solution for customers at its NRI centres
and plans to soon introduce the tool at other touchpoints. Finally, several key offices
have digitized certain approval processes through the paperless office initiative,
bringing transparency and accountability to their operations.
New ways of working: Adopting digital channels allows for improved
productivity and efficiency among the Bank staff and helps customers solve queries
swiftly. To make this possible, several BOB-NOWW campaigns this year focused on adding
customers to the Bank?s flagship module app bob World. As a result, in FY 2022, the
app added 1 Cr + customers, a feat achieved through successive campaigns and the
collective efforts of branch employees and BCs. The total number of app activations
presently stands at 2 Cr +, with a goal of reaching the 3 Cr + mark in FY 2023.
Business Performance
The highlights of business performance of the bank are as below:
Operating Performance
The highlights of operating performance of the bank are as below:
(Rs. in crore)
| Particulars |
Year ended March 31, 2021 |
Year ended March 31, 2022 |
| Interest Earned |
70,495.06 |
69,880.78 |
| Interest Expended |
41,686.04 |
37,259.44 |
| Net Interest Income (NII) |
28,809.02 |
32,621.34 |
| Other Income |
12,933.97 |
11,483.95 |
| Trading Gains |
3,375.97 |
2,728.76 |
| Operating Income (NII + Other Income) |
41,742.99 |
44,105.29 |
| Operating Expenses |
20,543.66 |
21,716.44 |
| Particulars |
Year ended March 31, 2021 |
Year ended March 31, 2022 |
| Employee Expenses |
11,445.53 |
11,978.84 |
| Other Operating Expenses |
9,098.13 |
9,737.6 |
| Operating Profit |
21,199.34 |
22,388.85 |
| Provisions (Other than Tax) |
15,643.33 |
13,002.41 |
| of which-Provisions for NPAs and Bad debts written off |
1,2407.71 |
1,4640.12 |
| Provision for Standard Advances |
2,158.03 |
-2,672.26 |
| Provision for Depreciation on Investment |
879.44 |
558.98 |
| Other Provisions |
198.16 |
475.57 |
| Profit Before Tax |
5,556.00 |
9,386.44 |
| Provision for Tax |
4,727.05 |
62,114.16 |
| Net Profit |
828.95 |
7,272.28 |
| Key Performance Indicators |
FY 2021 |
FY 2022 |
| Cost of Deposits - Global (%) |
4.01 |
3.52 |
| Cost of Deposits - Domestic (%) |
4.44 |
3.85 |
| Cost of Deposits - International (%) |
0.95 |
0.48 |
| Yield on Advances - Global (%) |
6.98 |
6.79 |
| Yield on Advances (Domestic) (%) |
7.83 |
7.61 |
| Yield on Advances (International) (%) |
2.48 |
2.18 |
| Net Interest Margin - Global (%) |
2.71 |
3.03 |
| Net Interest Margin - Domestic (%) |
2.79 |
3.09 |
| Net Interest Margin - International (%) |
1.29 |
1.47 |
| Cost-Income Ratio (%) |
49.22 |
49.24 |
| Return on Average Assets (ROAA) (%) |
0.07 |
0.60 |
| Return on Equity (%) |
1.50 |
11.82 |
The interest income of the bank stood at Rs.69,881 crore during FY
2022. Interest expenses decreased by 10.6%, reached to the level of Rs.37,259 crore during
FY 2022. The Global cost of deposit decreased to 3.52% and Global yield on advances stood
at 6.79% during FY 2022. The Global Net Interest Margin (NIM) improved to 3.03% during FY
2022 from 2.71% during FY 2021.
The cost of deposits in domestic book decreased to 3.85% and to 0.48%
in the international book during FY 2022. The Yield on Advance in domestic book stood at
7.61% and in International book stood at 2.18% during FY 2022.
Net Interest Income (NII) for the Bank increased to Rs.32,622 crore
during FY 2022 from Rs.28,809 crore during FY 2021. Other income of the bank stood at
Rs.11,484 crore during FY 2022. The Fee income of the bank increased Rs.6,409 crore,
registered a growth of 12.6% during FY 2022. Recovery from written-off accounts stood at
Rs.2,510 crore, during FY 2022. Employee costs during FY 2022 was Rs.11,979 crore whereas
other operating expenses stood at Rs. 9,738 crore during the period. The Operating
expenses of the bank stood at Rs.21,716 crore during FY 2022. The Operating profit of the
bank increased to Rs.22,389 crore during FY 2022 from Rs.21,199 crore during FY 2021.
Provisions for Non- Performing Assets (NPA) stood at Rs.14,640 crore
during FY 2022. The Bank posted a net profit of Rs.7,272 crore during FY 2022 from Rs.829
Crore during FY 2021, marked a growth of 777% on a YoY basis.
Resource Mobilisation (Rs. in crore)
| SL No Particulars |
As on 31.03.2021 |
As on 31.03.2022 |
| I Total Deposits |
9,66,996.93 |
10,45,938.56 |
| II International Deposits |
1,08,583.81 |
1,18,927.99 |
| III Total CASA |
3,88,282.22 |
4,33,605.23 |
| IV Total Current Account Deposits |
78671.42 |
88861.21 |
| V Total Savings Bank Deposits |
309610.80 |
344744.02 |
| VI Global CASA % |
40.15 |
41.46 |
| VII Domestic Deposits |
8,58,413.12 |
9,27,010.57 |
| VIII Domestic CASA Deposits |
3,68,027.57 |
4,10,122.92 |
| IX Dom. Current Account Deposits |
61,609.03 |
68,779.64 |
| X Dom. Savings Bank Deposits |
3,06,418.54 |
3,41,343.27 |
| XI Domestic CASA % |
42.87 |
44.24 |
Global Deposits and Global CASA
Total Deposit of the Bank increased to Rs.10,45,939 crore during FY
2022 from Rs.9,66,997 crore during FY 2021, there by recorded a growth of 8.2% during the
period. The International Deposit of the Bank also increased to Rs.1,18,928 crore as on
31.03.2022 from Rs.1,08,584 crore as on 31.03.2021, recorded a growth of 9.5% on a YoY
basis.
The global CASA of the bank increased to Rs.4,33,605 crore as on 31st
March 2022 from the level of Rs.3,88,282 crore as on 31st March 2021, registered a growth
of 11.67% during the period. The global current deposit of the bank increased to Rs.88,861
crore as on 31st March 2022 from Rs.78,671 crore as on 31st March 2021, marked a growth of
12.95% during the period. The global Savings deposit of the bank increased to Rs.3,44,744
crore as on 31st March 2022 from Rs.3,09,611 crore as on 31st March 2021, recorded a
growth of 11.35% during the period. The global CASA % to global deposit improved to 41.46%
from 40.15%, increased by 131 bps, during the period.
Domestic Deposits and Domestic CASA
Domestic Deposit of the Bank increased to Rs.927011 crore as on
31.03.2022 from Rs.8,58,413 crore as on 31.03.2021, registered a growth of 8% during the
period.
Bank?s domestic CASA deposits increased by 11.4% and rose to
Rs.4,10,123 crore as on March 31, 2022. Domestic CASA ratio of the bank to the domestic
deposit improved to 44.24% during FY 2022 from 42.87% during FY 2021, increased by 137
bps. Current Account deposits registered growth of 11.6% and reached to Rs. 68,780 crore,
while Savings Bank deposits reached to Rs. 3,41,343 crore with an increase of 11.40% as on
31.03.2022.
Low cost deposit mobilization initiatives
During the FY 2022, Bank opened 1.18 crore new CASA accounts. Within
this, the thrust was for opening accounts in paperless mode using Tablets (TAB) and
increasing penetration of Video Based Customer Identification Process (VCIP) mode of
account opening. Bank also launched New Products suiting to specific segments of customers
viz. B3 DIGITAL ONLY SAVINGS ACCOUNT, BARODA SINGLE NODAL SAVINGS ACCOUNT FOR GOVT.
BODIES. Extensive focus was given on Government business relationships and acquiring new
accounts particularly SNA accounts of Centrally sponsored schemes across States - Bank has
opened 169 SNA Accounts up to 31.03.2022. Special Emphasis was given for Increasing
penetration of Key CASA enablers like POS, IPG& BCMS and activation of dormant
account. In Digital front, Bank has increased penetration of client acquisition through
digital channels like VCIP, TAB & Digital ONLY accounts and during the FY 2022, 64,480
VCIP Savings Accounts, 34,134 B3- Digital only A/c were opened. Also out of 2,18,828
Current Accounts opened during the year, 1,35,469 Current Accounts (74.68% of eligible
Current Accounts opened) and out of 53,89,352 Non FI Savings accounts opened during the
year, 50,46,885 Non FI Savings Accounts (95.53% of eligible Non FI Savings accounts
opened) were opened through TAB during FY 2022.
Bank?s integration with the Ministry of Corporate Affairs Portal
for opening Current Accounts of newly formed Companies has yielded opening of 5,591
current accounts during the year. Bank has setup a separate Defence Banking Vertical
headed by Chief Defence Banking Advisor in the Cadre of Retired Lieutenant General and
ably supported by Deputy Defence Banking Advisors posted at key locations to penetrate the
Defence segment.
Banking is leading from front in extending Door Step Banking Services
through the PSB Alliance Door Step Banking Services. Bank has successfully completed
1,13,733 Door Step Banking service requests during FY 2022.
Baroda Cash Management Services
The Bank?s cash management business, Baroda DigiNext, provides a
wide range of Omni-channel digital solutions for Corporate and Government Customers for
management of their cash flows and liquidity. Baroda DigiNext provides valuable
information on real-time basis of all payments and receipts - electronic, cheques and cash
deposits at all its branches. The solution is used in key Government initiatives like
Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana, digitization of land records and
Agricultural Produce Market
Committee (APMC) collections. Bank of Baroda is amongst the only two
major banks that are fully integrated with Integrated Financial Management and Human
Resource Management System (IFHRMS) a key initiative for management of State Government
treasury.
Baroda DigiNext Cash Management continues to rapidly expand its
footprint acquiring a record 1,900+ new large corporate and government relationships in FY
2022. Over 4,800 large customers of the bank utilized Bank?s cash management services
for over 5.50 crore transactions during the year."
Credit Expansion
The global gross advance of the bank increased to Rs.8,18,120 crore
during FY 2022 from Rs.7,51,590 crore during FY 2021, thereby registering a growth of 8.9%
on YoY basis. The gross domestic advance increased to Rs.6,84,153 crore as on 31st March
2022 fromRs.6,41,076 crore as on 31st March 2021, there by marked a growth of 6.7% during
the period. The growth in advance portfolio of the bank was supported by Retail loan
segment (organic) which increased to Rs.1,40,399 crore, grew by 16.8%, Agriculture which
increased to Rs.1,09,796 crore, grew by 10.3%, MSME segment (organic) which rose to
Rs.96,863 crore, grew by 5.4% on a YoY basis. Within Retail Portfolio, personal loan at
Rs.9,748 crore registered a growth of 108%, Home Loans (organic) at Rs.82,009 crore
registered a growth of 11.3%, Auto loan (organic) at 25,130 crore marked a growth of 19.5%
and Educational Loan at Rs.6,731 crore marked a growth of 16.7% on a YoY basis.
The international gross advance of the bank increased to Rs.1,33,968
crore during FY 2022, from Rs.1,10,514 crore during FY 2021, there by registered a growth
of 21.2% on a YoY basis.
The Bank was highly benefited from its focused effort on digital front
to source additional business along with its branch banking business model. The Digital
lending platform of the bank has a special focus to improve its business in Retail Loan,
MSME and Agri segment. The Bank has digitalized the renewal process of small ticker MSME
loans covering around 70% of Bank?s portfolio by number. In Retail loan segment, bank
has launched end to end STP process upto disbursement for personal loan up to 10 lakh
using fully digital metrics. In Agri segment, the Bank has launched Digital journey for
Gold Loan to provide enhanced banking experience of the customers. The BOB-BOWW, BoB
World, digital lending platform (DLP), social media handles, whatsApp Banking, digital
loan services, tie-up with major market players from different fields etc have helped the
Bank to generate additional business and to increase its brand value & customer base.
Corporate Credit
Corporate credit in the Bank is serviced through 15 Corporate Financial
Services (CFS) branches which manage approximately 84% of the total standard corporate
credit portfolio of the Bank. The corporate credit portfolio of the Bank increased to
Rs.3,00,693 crore as on March 31, 2022. With revamp in approach towards corporate credit
delivery, the risk profile of the portfolio further improved during FY
2022 as observed in the rating distribution of domestic credit
portfolio as below:
| Credit Rating Distribution* |
As on 31.03.2021 |
As on 31.03.2022 |
| A and above |
73% |
78% |
| BBB |
11% |
10% |
| Below BBB |
8% |
6% |
| Unrated |
8% |
5% |
*External Rating Distribution of Domestic Advances above Rs.50
crore
Total portfolio comprising of A and above in FY 2022 was 78% as against
73% in the previous year.
To provide relief to the borrowers impacted by COVID-19, Bank
introduced various Guaranteed Emergency Credit Line (BGECL) Schemes in line with
government schemes under which overall Rs. 1,682 crore was sanctioned to corporate
borrowers and out of which Rs.1,294 crore was disbursed as of 31st March 2022. Under
Credit Guarantee Scheme for MFI, Rs.1,067 crore was sanctioned and disbursed. Further,
under Scheme for Financial Assistance to the project proponents for enhancement of ethanol
distillation capacity or to set up distilleries for producing 1st generation ethanol from
feed stocks Rs.635 crore was sanctioned and out of which Rs.126 crore has been disbursed.
Target market approach
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.
? Detailed 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, facility and other retail products.
The Bank also plans to set up Mid Corporate branches across the country
for quick processing of corporate proposals and tap the opportunities available in the Mid
Corporate Segment.
MSME Credit
The MSME portfolio of the Bank stood at Rs.1,00,131 crore (excluding
TWO) as of March- 2022. The Bank added 2.55 lakh MSME customers during FY 2021-‘22.
Bank implemented various schemes to provide liquidity support to MSMEs affected by
COVID-19 pandemic and to improve Bank?s MSME business in general, some of such
initiates are as follows;
1. ECLGS: Bank sanctioned Rs.14,864 crore and disbursed Rs.12,587 crore
under Emergency Credit Line Guarantee Scheme (ECLGS) till 31st March 2022.
2. Credit Outreach Programme: As per the initiative of DFS, the Bank
had launched Credit Outreach Programme on Pan India basis from 16th October to 30th
October, 2021, with 18 mega outreach Programmes conducted at various locations in UP,
Rajasthan, Gujarat and Daman & Diu where our Bank is SLBC / UTLBC convener. During the
programme period (16.10.21 to 30.10.21), the
Bank sanctioned MSME loans to 17,282 beneficiaries amounting to
Rs.1,185 crore.
3. MSME Utsav campaign: The MSME Utsav campaign started in the month of
October 21 concluded on 31st March 2022. The details of the business mobilised by the Bank
during the campaign are as under;
? Added 12,026 number of New to Bank (NTB) clients in our fold with an
approximate disbursement of Rs. 8,610 Crore, out of which 10,328 NTB clients were
canvassed with ticket size of less than Rs.1 crore.
? Also 9,795 numbers of MICRO New to Bank customers have been added
during this campaign.
4. Agreement with PAISALO Digital Limited:
? The Bank has entered into a co-lending pact with non-banking
financial company Paisalo Digital to provide small-ticket business loans to women
entrepreneurs & MSMEs.
? The partnership will provide access to small-ticket finance for
income generation to Micro, Small and Medium Enterprises (MSMEs) and women entrepreneurs.
? The Co-Lending arrangement will leverage Bank of Baroda?s low
cost of funds and credit assessment expertise, combined with Paisalo?s rule
engine-based loan origination and underwriting capabilities. This will be done with the
help of an end-to-end digital platform for sourcing, servicing and recovery of
small-ticket income generation priority sector loans.
? 232 sanctions have been conveyed to beneficiaries amounting to
Rs.1.12 crore at the time of launch.
5. Analytics-based and technology enabled canvassing of MSME business
from existing MSME customers: Under this initiative, customers who are availing only term
loan facility, were pitched for CC/OD accounts through our dedicated outbound contact
center executives. We have done cross selling of working capital facilities to 307
existing Term loan customers to the tune of Rs.162.17 crore. We will be going for cross
selling of Term loan Facility to existing Working Capital customers through similar
process.
6. PMMY loans are sanctioned through Digitalized mode.
7. Bank entered into MoU with Tata Power for financing solar power
systems up to 2 MW, used by MSME units
8. Area Specific Scheme has been launched for Small Scale Distributed
Solar Power Generating Units in the State of Gujarat.
9. Bank introduced ‘Baroda Energy Efficient Project (BEEP)
finance? scheme based on MoU with SIDBI for World Bank assisted ‘Partial Risk
Sharing Facility (PRSF) for Energy Efficiency Project?.
10. MoU with National Small Industries Corporation - As per this MoU,
NSIC shall provide MSME leads to our Bank and Bank have to share 50% of its processing fee
with NSIC only for the cases where loan is sanctioned to the borrower.
Bank has a specialised vertical for supply chain business for providing
liquidity support to various constituents with high focus on MSMEs. Bank?s supply
chain business is a supply chain solution to extend short term working capital finance on
a digitized and automated platform, providing real time alerts, reports and end-to-end
automated reconciliation.
The on-boarded limits for MSME segment stood at Rs.1,464.45 crore out
of total limits of Rs.2,601.45 crore under Supply Chain Finance portfolio as on 31st March
2022.
Retail Credit
The retail assets of the bank increased to Rs.1,50,253 Crore as on 31st
March 2022 from Rs.1,32,564 Crore as on 31st March 2021 thereby posting an overall growth
of 13.34%. Organic Retail Loans (excluding portfolio purchase) increased to Rs.1,40,399
Crore, an increase of 16.75% over the previous year. Retail assets formed 21.82% of
domestic advances as on 31st March 2022.
The key highlights of retail business in FY 2022 include:
Bank?s Mortgage-based loan book (Home, Mortgage and Rent
Receivables) stood at Rs.106844 Crore as on 31st March 2022.
Within Retail segment Organic Auto, Education and Home loans posted an
increase of 19.49%, 16.74% and 11.25% respectively.
Personal Loans Book of Bank increased at 108.07%.
Bank opened 9 new Specialised Mortgage Stores (SMS), with that
increased to 135 SMSs as on 31st March 2022. These stores are located all across the
country to deliver specialised and faster mortgage-based retail credit delivery.
During the Loan Sanction Cell (ELSC), with that increased to 11 ELSCs
as on 31st March 2022, to focus on Education Loan in key cities.
Bank has commenced DST channel to fulfil leads for increase in Retail
Loans.
Bank has Tie-up with Centrum Housing Finance Limited (CHFL) for
Co-lending in Home & Mortgage Loan.
Bank has partnership with Maruti, Hyundai and OLA for generation of
vehicle loans leads through integration with their portal.
Customers can now apply for Retail Loans i.e. HL, AL, ML and EL Loan
against deposit loans through Website, Net Banking & Mobile Banking channels.
Developed special scheme specific product under various Govt Programme
i.e. PMAY, Electric Vehicle, Student Credit Card, Defence Personnel.
Under the Digital Lending platform, in-principle approval for retail
loan products such as Home loan, Personal loan and Auto loan is now being done online.
Bank is offering end-to-end online Micro & Mini Personal loans upto Rs.50,000 &
Rs.5,00,000 respectively to its liability customers. Baroda Personal Loan to Government
Employees Salary Account customers and pre-approved loan for liability customers were
launched during the year.
Revamped Education loan scheme in line with IBA model scheme with added
features.
Revamped other Retail Loans and made them more competitive and customer
friendly.
Rural and Agricultural Lending
Bank has a network of 8,168 domestic branches of which 4,927 rural and
semi urban branches are leveraged fully for priority sector and agriculture lending. The
Bank?s agriculture advances increased to Rs.1,09,796 crore as on 31st March 2022.
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 of Dadra and Nagar Haveli and Daman and Diu. Bank
also shoulders the Lead Bank responsibility in 67 districts across the country.
Bank continues to be the leader in lending to agriculture sector which
received an impetus with the Government?s vision of "Atmanirbhar Bharat".
The Bank has moved beyond granting simple farm credit to a more diversified rural lending
strategy to encourage capital generation to farmers and build a robust infrastructure in
agriculture and Animal Husbandry. We are focusing more on newly introduced products such
as Agriculture Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund
Scheme (AHIDF), PM Formalisation of Micro Food Processing Enterprises (PMFME), Pradhan
Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan Scheme (PM Kusum), Pradhan Mantri Matsya
Sampada Yojana Scheme (PMMSY) and compressed biogas products. yearBankopened9newEducation
Bank continues to focus on its flagship products like Kisan Credit Card (KCC), Gold Loans,
Farm mechanisation (Tractor loans), Horticulture loans, Financing to Self Help Groups
(SHGs), Financing to Farmer Producer Organisation (FPO)/ Farmer Producer Company (FPC),
Hi-tech Agriculture and Food and agro-processing. During the year, the Bank has issued
2.75 lakh new KCC of which 0.80 lakh Animal Husbandry and Dairy (AHD) KCC issued to
farmers engaged in animal husbandry and fisheries activities under the ambit of KCC
mechanism. As part of its microfinance initiatives, Bank has credit linked 92,615 SHGs by
granting loans amounting to Rs. 2,782 crore during FY 2022.
Bank is encouraging tie ups with various Government agencies like State
Rural Livelihoods Mission (SRLMs) and other private partners to enhance credit linkage of
SHGs. To improve Turnaround Time and to enable hassle free instant Savings Bank Account
opening for SHGs, TAB banking has been introduced from 01.01.2022 onwards. In Tractor
loans, rate of interest has been linked with LTV of Tractor for the convenience of
farmers. In Digital Front, we have introduced digital journey for Gold Loan to farmers and
in-principle sanction journey for Kisan Credit Card.
Bank has introduced Centre for Agriculture marketing and Processing
(CAMP), a dedicated centralized centres for processing of agriculture loans with a special
focus on non-traditional and high value Agri advances. In the first 5 months of its
inception CAMP has sanctioned loans to -10216- farmers amounting Rs.952.85 crore.
Bank has organised its unique annual customer outreach programme
"Baroda Kisan Phakwada" in the month of October aligning with "Credit
Outreach" Programme promoted by Government of India. Total of 7,623 events were
organised during the "Baroda Kisan Pakhwada" in which 1.59 lakh farmers were
participated. Under Credit outreach programme Bank has sanctioned Rs.3,660.88 Crore to
1,75,722 farmers under various agricultural products.
Priority Sector Lending
Priority sector advances of the bank increased to Rs. 2,60,818 crore
during FY 2022 from Rs.2,49,196 crore during FY 2021, marked a growth of 4.66 % on a YoY
basis. Bank achieved the mandatory targets under all the categories of Priority Sector
Lending segments as on 31st March 2022.
Advances to SC/ST Communities
The outstanding advances to Scheduled Caste/ Scheduled Tribe (SC/ST)
communities went up to Rs. 14,469 crore as of 31st March 2022. The SC/ST communities
accounted for 19.87% share in total advances granted to weaker sections by the Bank.
Further, special thrust being 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.
Gold Loan
Bank?s gold loan portfolio increased to Rs.29,316 crore as on 31st
March 2022 from Rs.23,593 crore, by registering a growth of 24.26% on YoY basis. Within
gold loan portfolio, Agriculture gold loan grew by 24.25% to Rs.27,946 crore in FY 2022
from Rs. 22,492 crore in FY 2021. Retail gold loan increased to Rs.1,371 crore in
FY 2022 from Rs.1,101 crore in FY 2021, registered a growth of 24.52%. During the year,
the Bank has added 363 new gold loan disbursing branches taking total number of Gold Loan
designated branches to 5,601 in FY 2022 from 5,238 branches in FY 2021. The increase in
spread of Gold loan designated branches across the country with share of geographies other
than southern parts stands at 25.18% in FY 2022 as compared to 22.65% in FY 2021. The
number of Women beneficiaries of gold loan accounts increased to 8,13,502 in FY 2022 from
6,91,029 in FY?21, added 1,22,473 new such accounts during the year. The contribution
of Agri Gold Loan in total Agriculture advances increased to 25.14% in FY 2022, which was
at 22.30% in FY 2021. Average ticket size of gold loan increased to Rs.1.46 lakhs in FY
2022 from Rs.1.36 lakhs FY 2021. Average amount of gold loan per branch increased to
Rs.5.23 crore in FY 2022 from Rs.4.51 crore in FY 2021. Credit quality of Gold Loan
portfolio remained healthy with GNPA ratio of 0.26% as on 31st March 2022.
During the financial year the Bank has launched Digital Gold Loan with
In principal sanction approval to the customers. The Bank has also launched Gold Loan
eligibility calculator based on carat wise gold jewellery on our Bank?s website for
existing as well as prospective customers. The Bank has introduced Aatmanirbhar Women
Scheme exclusive for women customers, in order to increase women beneficiaries in gold
loan segment.
Financial Inclusion (FI)
In order to provide universal 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 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. Bank expanded its BC
network by additional 16,018 BCs to 39,338 BCs as on March 31, 2022 to cater to rural,
semi urban and urban areas across the country. The Bank took the following initiatives
towards promoting financial inclusion:
? ?Enabled Micro insurance enrolment through various channels such as
missed call / net banking / mobile banking/ SMS/ BC / branch. Introduced online claim
lodgement and settlement facility for both PMJJBY & PMSBY in association with the
Insurance Partners.
? Introduced new services at BC point viz., printing of self-service
pass books, NEFT, TD renewal, online lead generation for Agri, MSME, retail assets, Credit
cards & Retail liabilities.
? Bank is one of the implementing Agencies of BC Sakhi project of Uttar
Pradesh State Rural Livelihood Mission (UPSRLM).
? Bank has signed MOU with RBIH (RBI Innovation Hub) as a scale up
partner for its ‘Project Swanari? that is intended to encourage women startups.
Performance highlights under financial inclusion during
FY 2021-22
? Basic Saving Bank Deposit (BSBD) accounts increased by 56.48 lakh (9.57%) and
deposits increased by 4,342 crore (18.46%).
? Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts increased by 59.92 lakh (12.13%) and
PMJDY deposits increased by 3,977 crore (21.34%).
? The Bank?s share in comparison with PSBs stood at 15.60% for PMJDY accounts and
17.42% for deposits under PMJDY accounts.
? The zero balance PMJDY accounts of the Bank increased to 5.75 % as on 31st March 2022
as against 5.30% as on 31st March 2021.
? Enrolments in micro insurance during the financial year increased by 52 lakh numbers
and reached to 3.12 crore as on 31st March 2022.
Performance of RRBs sponsored by Bank of Baroda
The Bank sponsored three Regional Rural Banks (RRBs) namely Baroda U.P.
Bank, Baroda Rajasthan Kshetriya Gramin Bank and Baroda Gujarat Gramin Bank in the state
of Uttar Pradesh, Rajasthan and Gujarat respectively. The aggregate business of these
three RRBs rose to Rs. 1,33,080 crore as on 31st March 2022 from Rs.1,23,427 crore as on
31st March 2021. The three RRBs together posted a net profit of Rs. 594 crore during FY
2022, increased by 84.47 % as compared with net profit of Rs. 322 crore during FY 2021.
The net worth of these RRBs put together improved to Rs. 4,986 crore as of 31st March 2022
from the level of Rs.4,289 Crore as of 31st March 2021.
Stressed Asset Management
The Bank believes that continuous day-to-day monitoring is the first
step ensuring good recovery. For this, the Bank undertook various steps and formulated
strategies to augment recoveries and reduce slippages. Bank has strategies to touch each
and every NPA account in a scientific manner. Hence Bank has created special skill set
under an Apex Vertical ‘Stressed Assets Management Vertical?, at Corporate
Office. In this vertical -5- Stressed Assets Branches (SAM) were set up with special skill
set to cater all accounts under National Company Law Tribunal (NCLT), -16- Stressed Assets
Recovery Branches (SARB Branch) at zonal level were established to handle NPA accounts
other than NCLT with outstanding balance above Rs.5 crore. These Branches are under direct
supervision of corporate office to reduce TAT. Further -66- Stressed
Assets Recovery Branches (SARB Branch) at Region level were established
to handle NPA accounts with outstanding balance above Rs. 50 lacs to Rs. 5 crore.
Under Govt of India Digital Initiative, Bank has taken several steps
for end to end digitalisation of the entire recovery and monitoring procedure without
paper movement and Real Time basis. In this connection,
1. "QLICK" It picks several data points from FINACLE on real
time basis without manual intervention and calculates Days Past Due (DPD) Report, NPA
Movement Chart and Mock Runs - for forecasting daily degradations.
2. "ILMS" Mobile app and Desktop based portal which is an
online repository of entire NPA a/cs irrespective of amount. It provides online 360 degree
live monitoring of accounts without any manual intervention, like SARFAESI status,
DRT/NCLT status, Provisioning, Daily Recovery, lawyers performance analysis and online
submission/ sanction of OTS.
3. An application called One Time Settlement Tracking System has been
implemented wherein customers can initiate settlement proceedings online. Bank has
developed Automated Collection System (ACS) Mobile application - for taskforce staff on
the field to collect the amount based on allocation of the accounts in the system and also
update recovery details. Bank has an automated early warning system to identify the stress
at the earlier stage so as to take timely remedial measures to address the stress and has
a robust collection mechanism.
4. A new e-auction platform, eBkray was used for sale of properties
under Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act (SARFAESI) & banks success rate under SARFAESI is 38%.
5. Several Digital initiatives are under process like Geo tagging, TAT
analysis etc.
The movement of NPAs during the last two years is as under:
(Rs. in crore)
| Particulars |
FY 2021 |
FY 2022 |
| Gross NPA |
66,670.99 |
54,059.39 |
| Gross NPA (%) |
8.87% |
6.61% |
| Net NPA |
21,799.88 |
13,364.64 |
| Net NPA (%) |
3.09% |
1.72% |
| reduction in non-performing loans and in Additions to NPAs |
20,005.12 |
14,255.33 |
| Recovery/ Upgradations |
7,290.05 |
8,448.15 |
| Write offs including TWOs |
14,877.64 |
17,966.81 |
| Recoveries in write off accounts |
2,985.00 |
2,510.00 |
| Provisional Coverage Ratio (including TWO) (%) |
81.80% |
88.71% |
| Provisional Coverage Ratio (excluding TWO) (%) |
67.30% |
75.28% |
As per assetclassification,the bifurcation of loan book is as given
below:
(Rs. in crore)
| Asset Category |
FY 2021 |
FY 2022 |
| Standard Advances |
6,84,919.17 |
7,64,061.10 |
| Gross NPA |
66,670.99 |
54,059.39 |
| Total Gross Advances |
7,51,590.16 |
8,18,120.49 |
| Gross NPAs comprising |
|
|
| Sub-standard |
15,056.08 |
5,280.47 |
| Doubtful |
35,526.49 |
31,512.32 |
| Loss |
16,088.42 |
17,266.60 |
| Total Gross NPA |
66,670.99 |
54,059.39 |
Bank believes in Nation Building by extending hands to stressed
entrepreneurs through restructuring as per RBI guidelines.
In order to address the large number of small NPA accounts, Bank
continued with its special One-Time Settlement (OTS) scheme "Lakshya-II - MSME,
Retail and Agriculture" for settlement of NPAs in these segments and "Rin
Chukaao Shaan Se Jio" for settlement of NPAs in Doughtfull, Loss, PWO accounts. The
Bank recovered and upgraded NPA accounts amounting to Rs. 285 crore & Rs. 370 crore
under these schemes.
To have better and targeted monitoring mechanism & reduction in SMA
- I & SMA - II accounts of large corporate are being monitored by Stressed Asset
Management Vertical to find out the resolution and exploring all prospects of recovery, up
gradation.
International Banking
The Bank has 94 overseas branches/offices across 17 countries
comprising of 41 overseas branches/offices ( including 1 International Banking Unit in
GIFT City, Gandhinagar, Gujarat, India, 9 EBSUs in UAE and 1 Mobile Banking Unit in
Mauritius), 53 branches of the bank?s 7 overseas subsidiaries. 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.
The Bank has presence in the world?s major financial centers of
New York, London, Dubai, Singapore and Australia. In the international arena, 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.
Looking into the available business opportunities, Bank has also
diversified the advances on Non-India related syndication loans in the primary and
secondary market. Also, various new products have been launched to broaden the product
basket.
Bank has a wholesale branch in GIFT City (SEZ), Gujarat, India which is
treated as an offshore banking unit and has chosen the branch as a center for business
growth taking into consideration the immense business potential, tax advantage, Government
initiatives etc. Bank has taken various proactive steps in creating world class
infrastructure for the branch in IFSC including state of the art dealing room for
International treasury of global standard at GIFT city.
Further, in overseas centers, substantial progress was made in IT up
gradation for end-to-end business solution, with a focus on digitization and
centralization, to improve productivity and customer experience. Bank is continuously
integrating multiple platforms of technology to generate synergies.
In line with directives of Government of India, Bank has strategically
undertaken rationalization of its overseas presence based on a comprehensive evaluation
framework. As part of this exercise, during the year, Bank had closed its operations in
Hong Kong and South Africa. The Bank is continuously consolidating and re-organising its
International Operations in line with the new global environment and focused on
rebalancing the portfolio with a view to manage risks, shed low-yield assets and increase
profitability.
As of 31st March 2022, the Bank?s total business (net) from
international branches was Rs.2,42,702 crore and constituted 13.31% of the global
business. Total deposits were at Rs.1,18,928 crore while net advances were Rs.1,23,774
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 such as foreign
exchange, interest rates, fixed income, money of market, derivatives, 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.
Treasury maintains the regulatory requirements of CRR and Statutory
Liquidity Ratio (SLR) and manages the surplus/ deficit funds. Treasury borrows/invests in
money market and capital market instruments as part of fund management operations. The
total size of the Bank?s domestic investment book as of 31st March 2022 stood at Rs.
3,04,062 crore. The share of SLR securities in total investments was 82.71%. The
percentage of SLR securities (unencumbered) to Net Demand and Time Liabilities (NDTL) as
of 31st March, 2022 was at 21.93%. The Bank capitalised on the opportunities offered by
yield movements. The Bank managed its portfolio efficiently maintained yields on total
investment for FY 2021-22 at 7.26% (including profit on sale). During FY 2022, the profit
on sale of investment and foreign exchange earnings were Rs. 2,702 crore and Rs. 714 crore
respectively.
Government Business portfolio by taking exposure
The Government Business Vertical is an important part of the
bank?s strategy. It caters to the Banking requirements of Central/State Government
and PSUs across India.
We handle payment of Central Government and State Government pensions,
postal transactions, Treasury/sub- Treasury transactions, Public Provident Fund scheme,
Senior Citizens? Saving Scheme, Sukanya Samriddhi Yojana, National Pension System,
Atal Pension Yojana, e-Kisan Vikas Patra, RBI bonds, Direct Tax collection (CBDT), CBEC,
ESIC, MHFW, GST, e-stamping and Sovereign Gold Bonds.
We also facilitate opening of Accounts of various State/ Central
Government organizations and helps in mobilizing CASA deposits for the Bank. We also focus
on offering various services such as onboarding of our customers to GEM portal, PFMS etc.
which in turn helps us in establishing new relationships and canvassing CASA.
Our Bank is an accredited banker to the Ministry of Health and Family
Welfare and Ministry of Legal Affairs.
Our main focus is on providing the allied services i.e. on boarding of
Govt. departments on PFMS Portal, canvassing Govt, CASA accounts, monitors all the
branches conducting Government business and provide endless support to their queries and
address their doubts. We are constantly motivating all the branches through various
Campaigns to fetch in more business.
Appreciations from Government bodies;
a) Bank has received appreciation letter from Pension Fund Regulatory
& Development Authority (PFRDA) Government of India for the commendable efforts in
various Atal Pension Yojna (APY) campaigns launched in Q1 & Q2 FY 2022.
b) Bank has received appreciation letter from Pension Fund Regulatory
& Development Authority (PFRDA), Government of India for exemplary performance in Atal
Pension Yojna (APY) enrollments in FY 2022.
c) Bank has also received appreciation letter from the Ministry of
Panchayati Raj, Government of India for outstanding performance. Ministry of Panchayati
Raj recognized our performance on the basis of feedback regarding swift redressal of
issues from the users and technical team for PFMS integration.
Wealth Management
FY 2022 has been a pivotal year for the Wealth Management business in
transitioning from a business unit focused on cross selling to a Strategic Business Unit
focused on growing its Asset under management (AUM) across various business lines and this
pivot is expected to yield positive results for the business in FY 2023.
We are focussed on growing our Wealth Management Business within the
guardrails of regulatory compliance. In FY 2022, Premium mobilisation in life Insurance
for the year ended 31st March 2022 was Rs.982 crore, growing by 45 percent over the year.
In the Non-Life insurance space, your Bank along with its five Non-Life insurance partners
introduced new and innovative products and increased customer offerings. Various business
driving forces have been brought into effect in terms of increased manpower resources.
Employees across channels have been trained on the new products and processes. Premium
mobilisation in General and Health Insurance grew by 11 per cent over the year earlier to
Rs.490 crore. In Mutual Fund segment, the AUM stands at Rs.8,352 crore with growth of 44
percent.
A comprehensive transformation journey under the aegis of BONOWW
project was undertaken for the Baroda Radiance premium banking segment. The Bank tripled
headcount of dedicated Baroda Radiance Relationship Managers with fresh hiring of
professionals to enhance coverage and value across the segment. Refreshed Baroda Radiance
2.0 value proposition was rolled out for Radiance Customers offering cutting edge,
comprehensive and competitive products and services. Investment products like Portfolio
Management
Services (PMS) as well as Alternate Investment Funds (AIF) have been
launched for Baroda Radiance customers. Baroda Radiance business model has undergone a
major overhaul with various capabilities built and introduction of business enablers. The
Bank also embarked upon an ambitious digital journey and has initiated the process of
tying up with advanced digital technology service providers with an objective to extend
seamless digital platforms to customers and the frontline staff to facilitate end to end
wealth management solutions. We aim to leverage our technological capabilities and our
holistic offerings of wealth management products and services to create value for our
customers.
Digital Banking products
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. The key instruments in digital banking
are bob World, BHIM Baroda Pay, Baroda Connect, Debit Cards, Prepaid Cards, BHIM Aadhaar,
ATM and Cash Recycler machines, Self Service Passbook Printers(SSPBP), TAB Banking,
Internet Payment Gateway (IPG), Bharat Bill Payment Services (BBPS), Baroda FASTag, Bharat
QR, Point of Sale (POS), etc.
bob World
During the year the Bank launched an upgraded mobile banking
application with new features and services christened bob World. bob World activation
increased substantially during FY 2022 to 101.54 Lakh from 49.87 Lakh during FY 2021,
thereby registering a growth of 104% during the period. Financial transactions on bob
World also increased to 1,483.94 lakh in FY 2022 from 1,226.21 lakh in FY 2021, grew by
21% during the period. The Non-Financial transactions increased by 76 % to 21,931.55 lakh
in FY-2022 from 12,430.51 lakh in FY-2021.
Debit cards
The Bank has an active card base of 7.45 crore as on March 31, 2022, an
increase of 14%. 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. Within a duration of six
months (from October 2021 to March 2022), a total of 26 campaigns were launched with
various popular merchants such as Xiaomi, Zomato, Myntra, EaseMyTrip, Yatra, Ajio, Tata
CLiQ, Croma, Amazon, Snapdeal etc..Bank has during the year also launched BCL co-branded
NCMC platinum card in the month of Sept?21 and issued 15.58 lac cards by 31/3/22. The
Bank?s platinum card base has increased to 81 lacs as on 31/3/22 registering an
increase of 165% over the previous year.
Baroda FASTag (National Electronic Toll Collection - NETC)
Bank issued 2.01 lakh FASTag in FY 2021-22. Bank?s FASTag is now
available to BOB customers through bob World mobile app. Customers can even apply FASTag
for commercial vehicles through Online mode".
Bank has onboarded and issued FASTags for the buses of Kerala State
Road Transport Corporation in FY 2022.
Bharat Bill Payment System (BBPS)
Bharat Bill Payment System (BBPS) is an interoperable platform for
repetitive bill payments which offers real time bill payment services to customers. BBPS
is an RBI initiative product and managed by NPCI. Our Bank is authorized as Customer
Operating Unit and Biller Operating Unit for facilitating BBPS services.
? Customer Operating Unit (COU): During FY 2022, Bank has on-boarded M/s Any Time Money
Pvt Ltd as an Agent Institution (AI) for facilitating bill payment services to their
customers.
? Biller Operating Unit (BOU): Bank has on-boarded following billers in the FY 2022 for
facilitating their bill collections :
? Puducherry Local Administration Department
? Silvassa Municipal Corporation
? Stree Nidhi Credit Cooperative Federation Ltd., Telangana
? Mira Bhayandar Municipal Corporation
ATM
Our Bank is having the wide network of 9,845 ATM and 1,642 Cash
re-cycler as on 31st March 2022 with very user friendly screen to navigate under 8
languages Hindi, English and local language of place of deployment offering a smooth
experience for our customers in their day to day banking operation. Our ATMs are enriched
with features such as green pin generation, National Electronic Fund transfer, Cash on
mobile services where customer can withdraw money from ATM without using Debit card etc.
Now Bank is shortly launching the facility where customer can withdraw money using UPI QR
services (ICCW) of Bank. Similarly, the new facility of interbank cash deposit using
Bank?s Cash Re-cycler is also going to be launched soon by Bank.
Internet Payment Gateway (IPG)
The Bank?s IPG infrastructure was set up to provide an electronic
payment platform, Baroda e-Gateway for its customers to enable them to collect payments
through their own website / e-commerce business by enabling payment collection using
credit card/ debit card, UPI and net banking. Bank is also having the Paypoint facility
through which we provide the complete ERP solution to the merchants and can on board the
merchants not having website. To provide a seamless and customisable service, Bank tied up
with 16 aggregators and 4 master merchants and onboarded around 3,100 merchants. Bank
achieved a growth of 55% in IPG merchant on-boarding in FY 2022.
BHIM Baroda Pay:
UPI is a system that powers multiple bank accounts into a single mobile
application (of any participating bank), merging several banking features, seamless fund
routing and merchant payments into one hood. It also caters to the "Peer to
Peer" collect requests which can be scheduled and paid as per requirement and
convenience. During FY 2022, financial transactions (outward) under UPI (P2P & P2M)
rose to Rs. 250 crore, an increase of 100%.
? ?UPI International: UPI International is jointly developed by
National Payments Corporation of India (NPCI) and NETS (Network for Electronic Transfers)
of Singapore for promoting QR based payment through UPI application in Singapore Dollar
(SGD). The account shall be debited in INR but the amount paid to the merchant will be in
SGD. Presently, Bank is live as an issuer. The same facility is also enabled for Bhutan,
Nepal and UAE.
? GST payments through UPI: In a momentous decision to promote
digital payments in Business to Customer (B2C) transactions through Dynamic QR Code,
Government of India laid down guidelines for Goods and Services Tax (GST) enablement in
UPI. It was mandated that corporate merchants with annual turnover of Rs.500 crore and
above, have to follow QR code provisions for Dynamic QR Code invoicing solution with GST
components to customers. Acquired merchants of the bank can avail the facility of Dynamic
QR Code with GST components. BHIM Baroda Pay application is compliant with the GST related
changes and can scan the GST enabled QR Code, decode and provide the requisite information
required by NPCI in request message.
Baroda Connect:
During FY 2022, Bank has successfully on boarded many new customers on
its internet banking platform. The total number of Internet Banking users of the bank
increased to 88.09 lakh from 76.80 Lakh during FY 2021.
Baroda TabIT:
The Bank embarked upon digitising its customer on boarding process
through tablet for instant CASA opening along with host of services (Personalised Cheque
Book, Personalised Debit Card, Mobile Banking with MPIN, SMS Alert, Internet Banking and
Mobile Banking registration in SB and Current account, UPI etc.) through its TAB banking
platform - Baroda TabIT. Bank opened more than 50 lakh savings account and 1.48 Lakh
Current accounts through this platform during the year. The TAB on-boarding platform is
now extended for FASTag issuance, Debit Card & Vyapar Card Issuance and on-boarding of
merchants for availing UPI QR. The TAB platform is now also extended for generating leads
for Bhim Adhaar, Credit Card and POS (Individual and non-Individual).
WhatsApp Banking:
Based on the inputs and feedbacks received from various
stakeholders?. On 11th Feb, 2022, we have launched the Phase-2 functionalities under
New Digital Delivery channel WhatsApp Banking for our customer and non-customers of the
bank. Gist of the new functionalities are given as under-
1. CBS/ Digital Channel based services:
? Account Statement
? Disabling of UPI
? Account Blocking (Debit freeze)
? Disabling Debit Card for Domestic Transactions (POS/ECOM/ATM)
? Disabling Debit Card for International Transactions (POS/ECOM/ATM)
? Tracking of Cheque Book request
? WhatsApp Banking Registration/Deregistration Functionalities
? OTP validation for critical services (Cheque Book request, Debit Card Blocking,
Disabling Debit Card for Domestic/ International transactions,
Registration/De-Registration WhatsApp Banking and Disabling of UPI)
2. Baroda FasTag:
? Tag Balance Inquiry
? Mini Statement (Tag Transactions)
3. Wealth Management Services (Both customers and non-customers): Wealth
Management Services (M/s IndiaFirst Life Insurance) will be provided using redirection to
respective business partner?s WhatsApp Business Account.
4. Other Facilities (Re-directional):
? MSME Banking Product
? Agri loan and Services
? Agri Loan Feature
? Apply for Agri Loans
? Baroda Kisan
? bob World cross marketing text with link on main menu
5. Digital loan Services (Re-directional):
? Personal Loan
? Auto loan
? Home Loan
? Mudra loan
6. Introduction of WhatsApp Banking in Hindi Language: We have
introduced our WhatsApp Banking option and customer journeys in Hindi for customer
convenience and promote usage of our official Language.
7. Extended WhatsApp Banking services to International numbers of
selected countries (19 countries)
? In addition to the above, we have developed a Push notification API
for integration with various channels as per the requirement.
? We have also initiated Marketing campaign during Diwali by sending
messages on awareness of Bank of Baroda Debit Cards and bob World application.
? Extension of Digital B3 Accounts under WhatsApp Banking has been
deployed and made live in production.
? Admin portal of WhatsApp Banking has been made live, which is having
modules for Admin and customer care.
? As on 31st March 2022, approx. 1.6 lacs cheque request has been
submitted successfully.
? WhatsApp Banking User registration -
| Year |
Number of Users registered on WhatsApp
Banking (in lacs) |
| FY 2021 |
6.16 |
| FY 2022 |
14.04 |
| Total registration |
20.2 |
? WhatsApp Banking Transactions -
| Year |
Number of WhatsApp Banking Transactions
(in lacs) |
| FY 2021 |
47.8 |
| FY 2022 |
207.5 |
8. Digital Lending
As the world transitions into the new normal, technology has become an
essential factor in our productivity and efficiency.
As technology took the front seat, customers started to seek services
that did not require them to travel, particularly for their routine banking needs. This
evolving landscape of customer preferences led us to build Digital Lending Platform (DLP).
The Digital Platform is helping Bank to cater to existing customer
borrowing needs and acquire new customers from diverse segments using digital means, enter
new and hitherto untapped markets, and add a prominent digital dimension to Bank?s
brand identity.
The platform is empowering the borrower to complete the end-to-end loan
process from lead, to sanction, and to disbursement in a few clicks with minimal including
mandatory documentation using contactless and paperless process from the convenience of
their homes/ office, eliminating the need to physically visit the Bank?s branch.
At the core of this digital lending platform, fintech are playing a
pivotal role in revolutionizing credit ecosystem by creating alternative lending channels
that offer significant to both Bank and borrowers.
Bank of Baroda has been ranked 1st for Digital Lending by Govt. of
India for adoption of PSB Reforms EASE 4.0
Initiatives of Digital Lending to improve Bank?s business
portfolios;
MSME Segment:
? ?Bank has digitized renewal process of small ticket MSME loans
covering around 70% of Bank?s portfolio by number. This has brought in significant
terms of operational efficiency, process standardization and better monitoring. We are
well on track of digitally renewing 1 lakh cases during this Financial Year and at least
50% more in the coming year.
? ?Bank has launched straight through process journey for sanctioning
Mudra Loans up to 10 lakh using fully digital metrics. This initiative is expected to
drive significant value in the coming years in terms of quality MSME business.
Retail Segment:
? ?Bank has launched end to end Straight-Through Processing (STP) upto
disbursement for Personal Loan up to 10 lakh using fully digital metrics.
? Further analytics are used to understand customer?s behavior and
account information, thereby offering pre-approved personal loans to existing customers
through end-to-end digital journeys.
Agri Segment:
? ?Bank is working on STP digital journey for BKCC in selected states
which are having progressive digitization of agri land records. The journey involves
integration with Agritech?s for fetching of land record and risk analysis of the farm
data.
? Bank has launched Digital Journey for Gold Loan to provide enhanced
banking experience to the customers.
Analytics Centre of Excellence (ACoE)
Bank are continuing extending the data and breadth of analytics use
cases for different business verticals. Bank have integrated multiple external data
sources to get deep insights of our customers. We have also rolled out multiple analytical
use cases related to cross -sell, up-sell, forecasting, Early Warning Signals etc. to
generate revenue and optimise the efficiencies.
Information Technology
? ?Bank has successfully upgraded CBS international-Finacle 7x to 10x
for all 18 territories, additionally re-architected the infrastructure for better
availability and performance.
? Bank has successfully completed the amalgamation of Kashi Gomti
Samyut Gramin Bank (e-KGSGB) and major CBS cross platform migration of erstwhile
Purvanchal Bank (e-PB) to Baroda Uttar Pradesh Gramin Bank (BUPGB).
? Bank has successfully implemented multiple government sponsored
schemes like IFMS Integration, Single Nodal Account (SNA) for managing of funds through
PFMS under the umbrella of Centrally Sponsored Schemes (CSS).
? Bank has upgraded the Integrated Global Treasury application for
Front, Mid and Back office with augmented hardware and latest operating system
? Bank has revamped the BoB World mobile banking platform with enhanced
user interface, state-of-the-art design, and ease of use. Presently there are 235+
services covering almost all banking services.
? Bank has enhanced the tablet based assisted banking platform for on
boarding and servicing Customers Bank.
Bank is the first in the industry to introduce assisted journey for
opening of SHG Accounts.
? Bank has introduced Chatbot, a cognitive assistant designed for
providing customer support to Bank?s International Centers at Uganda, Kenya,
Botswana, Mauritius, UAE and Tanzania.
? Bank has enhanced the WhatsApp Banking services for providing better
customer service experience with 18 services.
? Bank has revamped the Internet Banking application for International
Centers with various enhancements and also provided various customer centric features like
Green PIN, Cash on Mobile for International centers.
? Bank has augmented the infrastructure to sustain load of all
applications based on the present volumes, future projections for 3-5 years.
Cyber Security
In today?s world, new risks emerge every hour of the day.
Increased risk of cybercrime has led to a focussed approach to mitigate the emerging cyber
risk. Monetary and reputational risks are high and have been mitigated with appropriate
Cyber Security Policy and Cyber Security Crisis Plan. 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 follows both
NIST (National Institute of Science and Technology, USA) Cyber Security Framework and RBI
Cyber Security Framework.
In addition to the existing checks and controls, Bank undertook the
following measures to enhance cyber security: ? ?Deception Technology, which aims at
preventing cybercriminals who have managed to infiltrate network from doing any damage to
the Bank.
? Regular Random Early Detection (RED) team exercise carried out to
provide valuable and objective insights about vulnerabilities and the efficacy of defenses
and mitigating controls already in place.
? Cyber Insurance Policy from a reputed insurance provider to protect
business and individuals from Internet-based risks and frauds.
? Data Leak Prevention (DLP) ensures that no confidential information
is leaving the Bank network. Data leakage prevention is helping in application monitoring,
email monitoring, malware protection and user access control.
? Network Access Control (NAC) is helping Bank in providing restricted
access to computing resources. It provides visibility, access control, and compliance that
are required to strengthen network security infrastructure.
Marketing
The Bank launched its flagship digital sub brand ‘bobWorld‘on
the occasion of its 114th Foundation Day in the month of July.
The launch was done through first of its kind 360 Degree pre-teaser
campaign followed by a teaser and the mega launch campaign with Bank?s brand endorser
Ms. P V Sindhu, Indian International badminton player, at its face. Ever since the launch
throughout the year there has been constant & continued thrust on the sub brand
bobWorld through various campaigns.
Apart from the flagship bobWorld campaign, with the onset of festive
season and opening up of markets, other products campaigns such as Home Loan, Car Loan,
MSME loans, Online SB Account Opening etc were also run during the year. Bank also
celebrated ‘Azadi Ka Amrit Mahotsav? during anchor month (February 2022) on Pan
India basis with special focus on SLBC states ( Gujrat, UP and Rajasthan).
Bank signed Indian Cricketer Ms. Shafali Verma as its brand endorser.
It is a welcome result of her consistent outstanding performance in the women?s
Cricket for India. Bank has a history of associating with ace athletes and sportspersons
as its brand endorsers and being a crucial part of their journey. The Bank continuously
supports the youth of the country through its various banking and non-banking initiatives
and this association reflects the Bank?s ethos of adding value to its customer
experience by choosing youth-icons like Shafali to inspire them. Further, Ms.
Shafali?s personality resonates grit, determination and dependability which reflects
the Bank?s brand ideologies.
Ms. Shafali has created various records, one of which is when she
became the youngest woman cricketer to play for India in her debut game against South
Africa. The youngest Indian to top any ICC list, Ms. Shafali is hailed as one of the
promising talents to watch out for in Women?s Cricket.
On the digital front, Bank fortified its digital marketing efforts for
business conversion leveraging on the digital journeys rolled out for Home Loan, Car,
Loan, Personal, Loan, Mudra Loans etc.
The Bank continued to have its impactful presence across the media
spectrum reaching out to its customers through electronic, radio, digital, and events.
#BOB Green Ride With Milind was one such initiative in collaboration with fitness icon
Milind Soman. Overall, the initiative proved to be yet another benchmark in the
Bank?s contribution toward a healthier tomorrow held this year in a hybrid avatar.
The Bank has always advocated the might of knowledge acquisition and learning in youth and
millennials and Jaipur Literature Festival an iconic annual literary festival, was one of
the perfect opportunities to champion the same. Further strengthening our presence across
our digital marketing channels, we rang in the festive season during Diwali urging our
customers to gift their loved ones as per their choice using compare & shop options on
our mobile banking application - bobWorld. Bank has been associated with Olympic star PV
Sindhu for over 5 years now and launched the second edition digital IP #SmashItWithSindhu2
wherein she interacted with her fans and also giving a sneak peak into bob World,
describing it as super-fast and convenient. The details of Bank?s social media
presence are as below:
| Social Media Channels |
Statistics(No of likes/Followers) as on
March 31 2022 |
| Facebook likes |
21,53,983 + |
| Twitter followers |
3,95,000 + |
| YouTube Subscribers |
1,03,937 + |
| LinkedIn followers |
1,73,605 + |
| Instagram followers |
2,14,473 + |
| Quora Views (started on 1st Jan 2022) |
27,459 + |
As the Bank continues to leverage new age digital marketing 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 analyzing, measuring and
improving experience, response and capabilities.
Corporate Ethics
In our pursuit of joining the international ranks of the most respected
organizations in terms of ethical conduct, our Bank formally established the Corporate
Ethics function on 10th August 2021, with the objective of developing a strong ethical
culture that leads to building better trust with employees, customers and other
stakeholders. Ethical conduct needs to be reinforced in everything we do and a
well-defined ethics framework will go a long way in enhancing employee engagement, job
satisfaction, organizational commitment, brand equity and trust.
The Corporate Ethics Department receives guidance and support from the
leadership of the bank, as well as an Apex Level Ethics Committee, formed from a
cross-section of the entire Barodian workforce with various representations like gender,
function, geography, caste, cadre, sports, PWD, ex-servicemen and international
geographies, with a mandate to embrace inclusiveness and collaboration as central themes.
One of the most powerful strategies for ensuring the success of our ethics agenda is
developing effective channels of communication and towards this endeavour, a quarterly
in-house journal - "Baroda Sanskriti" - was launched on 1st January 2022 with
contributions from the employees. Further, regular quizzes, competitions and digital
communications from the Corporate Ethics Department also ensure better awareness of
ethics.
The Bank is soon going to launch 'Our Code of Ethics', which will be a
milestone for us in our journey of ethics and a landmark initiative for a Public Sector
Bank in the country. We are proud to be amongst the pioneers in adopting a Code of Ethics
and devising an institutional mechanism for handling ethical concerns and issues in the
organization. The Code has been structured on a stakeholders? based approach with the
employees at the centre as the ultimate owners and drivers of culture. There is a strong
alignment of the Code of Ethics with our Core Values and the Code sets out a guiding
framework for how we behave with our colleagues and stakeholders and our expectations from
those who work with us.
The Banking industry has seen a lot of challenges with the changing
times but amidst these, ethics and trust remain at the core of the industry on any given
day. Bankers face ethical dilemmas in their day to day working, and it is therefore
important to have some markers and a guide to taking the right decisions at work. The Code
gives us the strength to do what is "RIGHT" and will help to enhance our
Bank?s brand and reputation.
The Code of Ethics has been benchmarked with peer organizations from
around the world. Webinars and dedicated training programmes planned for all staff members
will ensure that the Code of Ethics is cascaded to all employees and strengthen the
culture of ethics and transparency in our Bank. By creating a corporate culture that
encourages employees to behave ethically and speak up against unethical practices, we
expect our organization will be able to deliver powerful Environment, Social and
Governance (ESG) outcomes that addresses the interests of all our stakeholders.
Customer Service
The Bank constantly endeavours to set industry benchmarks and pioneer
innovations across products, processes and service delivery that are imperative to
providing seamless experiences to its customers. Customer interactions are continuously
monitored across channels and channel capabilities (functionalities and the user
experience) were enhanced to ensure ease of banking from home which has become the need of
the hour due to the pandemic. 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 more than 4.31 crore customer calls during the year.
To assess customer satisfaction levels across segments various surveys are conducted by
the contact centre. 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 2022, the Bank
saw significant improvement in the usage of remote channels for managing grievances.
Approximately 92.43% of the grievances were resolved within the pre-defined turnaround
time. The Bank not only focussed on improving the quantitative performance indicators of
grievance redressal but also on improving the quality of resolution to improve customer
satisfaction. Service levels across the network of branches are monitored through mystery
shopping/service audits and workshops. The General Manager, Operations and 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.
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. At the Board level, the subcommittee of Board for
Customer Services 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 subcommittee also analyses the feedback received from customers
through Voice of Customers and compares the Bank with its peers on various parameters to
enhance the customer experience. During FY 2022, the Bank ensured that ramp facility
(wherever possible), comprehensive notice boards (displaying relevant and updated
information), special queue for senior citizens were available in the branches, ATMs and
e-lobbies. 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.
The Bank has also launched its ChatBot "ADI" on its website.
ADI assists customers in navigating through various pages of the website while providing
an interactive experience to the customers. Few features of "ADI" are instant
response to our customers? queries, convenient to chat, available 24*7, digital
assistance, seamless chatting experience. Bank has also tied up with TrueCaller services
for outbound sales calls. This means that whenever a call is made via an authorized phone
no. of the bank, Bank?s Logo and a "blue-tick" will be visible to the
customers on their phone screens, thus assuring the customers that the call is genuine.
This will also prevent customers from falling prey to frauds.
The Bank has also implemented Queue Management System (QMS). It is a
crowd management tool. The customers need not crowd at the counters and instead wait for
their turn in more relaxed/comfortable position. QMS revolves around Customer Service as
the MIS has various outputs to gauge the average waiting time, average serving time. It
has been installed in 1,266 branches across India.
Bank has also implemented Online Dispute Redressal (ODR) mechanism for
speedy resolution of online transaction relate complaints. Also, blocking of Baroda
Connect facility has been extended via Interactive Voice Response System (IVR) in contact
centre.
Branch Network
As of March 31, 2022, the branch network of the bank is as under:
|
March 31, 2021 |
March 31, 2022 |
| Domestic Branches |
Number of Branches |
% Share in Total |
Number of Branches |
% Share in Total |
| Metro |
1,794 |
21.84 |
1,766 |
21.62 |
| Urban |
1,478 |
17.99 |
1,475 |
18.06 |
| Semi Urban |
2,090 |
25.44 |
2,083 |
25.50 |
| Rural |
2,852 |
34.72 |
2,844 |
34.82 |
| Total |
8,214 |
100.00 |
8,168 |
100.00 |
| Overseas Branches/ Offices (including
branches of overseas subsidiaries) |
96 |
|
94 |
|
The Bank opened new 9 domestic branches and merged 55 branches with
existing branches during FY 2022.
Currency Chests
The number of currency chests stood at 141 as on 31st March 2022. 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 with Note Sorting Machine
(NSMs) as per RBI guidelines.
Risk Governance and Internal Controls
The increased focus on risk and the supporting governance framework
includes identification, monitoring and controlling of risks as well as ensuring that
risk-taking activities are in line with the Bank?s strategy and risk appetite. Often
referred to as the "three lines of defence", each of the three lines has an
important role to play. These are:
i. First line of defence - This comprises of the Business
verticals and Operating units, as they are required to own and ensure the effective
management of risk and compliance with regulations, Bank?s policies and guidelines.
ii. Second line of defence - This comprises of the risk control owners,
the risk management function and compliance function. It is responsible for identifying,
measuring, monitoring and reporting risk on an enterprise-wide basis independently from
the first line of defence.
iii. Third line of defence - An independent assurance is provided by
the internal audit function 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 audit function is defined and overseen by the Audit
Committee of the Board.
Risk Management and Compliance
Risk Management and Compliance 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 focussed 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- board 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.
Basel III Framework
The Banks risk management framework rests firmly on the three Basel
pillars, i.e Pillar I- Capital Adequacy, Pillar II- Supervisory Review and Pillar
III-Market Discipline. The Bank is strengthened by a healthy level of capital. The Bank
maintains adequate levels of Common Equity Tier I, Additional Tier I and Tier II Capital
including required Capital Conservation Buffer. Futuristic capital projection ensures that
the Bank is always ready to raise additional capital from the market as per business
necessity. The position of risk weighted assets is constantly under strong vigil by the
credit risk and capital adequacy team. Adequate capital and rationalised risk weighted
assets ensures strong Capital to Risk Weighted Assets Ratio (CRAR) for the Bank.
The Bank has a comprehensive Internal Capital Adequacy Assessment
Process and Stress Testing Policy in place. Capital Adequacy is assessed considering
Pillar 2 risks such as Liquidity Risk, Interest Rate Risk, Concentration Risk, etc. and
stressed conditions (under both normal and adverse scenarios) as per the extant
guidelines. A brief outline of the mechanism for identifying, evaluating and managing
various risks within the Bank is given below:
Enterprise Risk Management
The diversity of the Bank?s business lines requires a
comprehensive Enterprise Risk Management approach to promote a 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 material risk appetite limits 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.
Climate Risk
Climate change risk has become a 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 does not finance
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) which enables reduction in greenhouse effect.
Credit Risk
Credit risk is managed through a Board approved framework that sets out
policies, procedures and reporting which is in line with best practices. Bank has a strong
credit appraisal and risk management framework for identification, measurement, monitoring
and control of the risks in credit exposures. Bank uses various Internal Credit Risk
Assessment Models and scorecards to assess borrower-wise credit risk. Various Credit Risk
models for internal credit ratings of the borrowers were developed in-house. They are
reviewed and back tested through comprehensive validation including external validation.
Bank has recently upgraded its Internal Credit Rating system to bring in efficiency and
strong data management system.
The Bank has put in place prudential caps across industries, sectors
and borrowers to manage credit concentration risk. The Risk Management Department carries
out detailed reviews on sectoral exposure, credit concentration, rating distributions and
migration. The Bank has developed in-house models for Country Risk assessment and State
Government exposure model for assessing the riskiness of the borrower by assessing various
parameters and exposure caps are fixed considering the riskiness estimated by these
models.
Bank?s experience in internal ratings over the years has enabled
to obtain the regulator?s approval for running the foundation internal rating-based
approach (F-IRB) approach of credit risk under Basel II guidelines from 31st March 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 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.
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.
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
control and monitor its treasury functions which undertakes various market risk positions.
Mid-Office as a part of Risk Management, measures and monitors interest
rate risk in its trading book through risk limits like duration, modifiedduration, 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, Individual
Gap Limits (IGL), Aggregate Gap Limits (AGL) and total Aggregate Gap Limit (TAGL) 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 as per the extant guidelines of the Bank. Mid-Officealso
conducts back testing of the VaR numbers on a daily basis. Under its stress testing
framework, the Bank conducts comprehensive stress tests of its trading book portfolio on a
quarterly basis. Risk-return analysis of treasury trading portfolio is also conducted on a
quarterly basis. The market risk capital charge for the Bank is computed by mid office as
per the Standardised Duration Approach (SDA) in line with the regulatory guidelines.
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 RBI has
also introduced NSFR (Net Stable Funding Ratio) with effect from 01st October 2021 which
promotes resilience over a longer-term time horizon whereby Banks are required to fund
their activities with more stable sources on an ongoing basis. The NSFR seeks to ensure
that Bank maintains a stable funding profile in relation to the composition of its assets
and off-balance sheet activities. The Bank?s NSFR has been well above the stipulated
level of 100%.
Interest Rate Risk in the Banking Book (IRRBB) arises due to mismatch
between rate sensitive assets and rate sensitive 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 Net Interest
Income (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.
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 ORMS consists of the systems used by the Bank in identifying, measuring,
monitoring, controlling and mitigating Operational Risk.
The Bank has a web based Operational Risk Management System for data
capturing and for systemic and integrated management of Operational Risk. In our endeavour
to use the best of technology, we have procured a web based Operational Risk Management
System SAS GCM for Operational Risk Compliance & Governance.
Monitoring of Key Risk Indicators Programme (KRI), Risk & Control
Self-Assessment Programme (RCSA) and Root Cause Analysis of various loss incidents
strengthen the control environment. The Bank created a repository of Internal Loss Data as
part of Operational Risk Management. Ongoing review of products and processes in the light
of the changing business environment further strengthens the risk culture. In order to
ensure operational resilience, Bank has a well-defined Policy on Business Continuity
Planning. BCP enabled the Bank to ensure minimum disruption during the COVID-19 pandemic
and the natural disasters which occurred during the year. Risk Culture in the Organisation
is being ingrained across the gamut of employees through the Training System.
Business Continuity Plan
Bank has a detailed and effective Business Continuity Plan (BCP) in
place for ensuring continuity of operations and rendering customer service at the Branches
and Offices during disruptions. The same could be witnessed when we rose to the challenge
of delivering uninterrupted banking services amid wide ranging restrictions following the
outbreak of COVID-19 pandemic.
With regard to this, quick response teams and help desks have been
setup at Corporate Office/Head Administrative Offices. Staggered working hours / Team
‘A? and Team ‘B? concept / work from home is being followed as a part
of proactive Business Continuity Plan. Bank also arranged vaccination camps and quarantine
centres in association with various hotels for the safety and proper medical care of the
employees. Further, foreseeing the impact and extent of pandemic crisis, the Bank has
taken all precautionary initiatives to ensure continuity in day to day operations. The
Bank has ISO 27001:2013 certified Data Centre and Disaster Recovery site. Bank?s
Disaster Recover site is capable of handling the CBS and other functions of the bank in
case of any disruption at Data 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 an independent function. 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 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 a robust compliance system including a well-documented compliance policy,
outlining the compliance philosophy of the bank, role and set-up of the compliance
vertical, composition of its staff and their specific responsibilities.
The compliance function advises senior management and the Board on the
position of 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 training 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 automated the process for obtaining information from the
"Insiders" as defined in the Securities and Exchange Board of India (SEBI) Code
of Fair Disclosure and Conduct.
Domestic Compliance
Amongst several activities, the domestic compliance function conducts
on-site compliance test checks on more than 73 parameters on KYC-AML guidelines and other
parameters of compliance through Regional Compliance Officers (RCOs) by using web based
tool - Onsite Compliance Testing and Reporting System. As many as 25% of branches are
randomly selected on a quarterly basis. Bank conducts on-site compliance audit of various
functions on half yearly basis. Off-site compliance test check of around 50 parameters on
issues related to KYC/AML guidelines and other parameters of compliance is carried out on
a monthly basis through the web based tool - Offsite Compliance Reporting and Monitoring
System (OCRMS).
An annual group wide compliance plan is prepared and regular monitoring
is carried out for ensuring adherence toOffice and all our the plan. Additionally,
compliance risk is assessed annually and a risk-oriented activity plan is developed for
compliance assessment.
In the process of capacity building, the Bank imparted training to all
compliance officers and nominated 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 encouraged staff members to pursue professional
courses from reputed institutes like Indian Institute of Banking and Finance (IIBF),
Association of Certified Anti-Money Laundering Specialists (ACAMS) etc.
FY 2022 There were no significant relating to compliance failure.
International Compliance
The compliance function is also having an oversight on the compliance
of overseas territories and subsidiaries for which an International Compliance (IC) unit
headed by a Deputy General Manager is set up. IC monitors the compliance of overseas
centres through an automated compliance monitoring tool. Additionally, the IC also
provides support on the AML-KYC function of overseas territories and subsidiaries for
which an experienced and skilled team is available in the unit.
As part of new initiatives IC has implemented automated compliance
monitoring tools Tasc+, Cermonxt and TestChk through which monitoring of monthly
compliance certificates, offsite test checks, Annual Compliance Plan, Regulatory/
Non-Regulatory issues and ATRs.on various internal/external audits, inspections and
examinations is being carried out. The automation is being used to not only monitor how
effectively the compliance processes are being implemented but also to identify areas
where new standards and controls may need to be applied or existing ones be improved along
with identifying any potential breaches. Additionally, the tools will help in generating
appropriate MIS and maintaining historical data for all overseas territories and
subsidiaries.
Apart from the above, the IC has also developed an AML-Compliance Risk
Rating Matrix for risk categorization of the respective overseas centres based on the
levels of compliance and AML-KYC standards. Further, to apprise the Board of the adequacy
of the AML-Compliance function, the IC carries out off-site test checks of CBS and AML
systems to exercise oversight on the territories and subsidiaries. Data is sourced from
respective IT teams, analysed and anomalies observed are shared with the overseas centres
and necessary guidance for remediation of gaps is provided to the Compliance officers.
The IC also arranges trainings for overseas centres in coordination
with the Apex Academy on various compliance matters like KYC-AML/CFT standards,
transactions monitoring, sanctions screening, offline alert monitoring, etc. and ensures
adequate and timely trainings are provided to minimize risks, maintain reputation and
benefit employee productivity in the long run.
KYC/ AML Compliance
The Bank has a well-defined KYC-AML-CFT policy. On 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 organizations 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 categorization
(money laundering risk categorization) of customers? accounts is done on a half
yearly basis. Re-KYC of all eligible customers is done on half yearly basis after carrying
out money laundering risk categorization exercise, as per extant guidelines of the RBI.
For this purpose, the Bank has developed automated process for identification and
generation of notices/ sending SMS/email to such customers to notify them for submission
of requisite KYC documents. The Bank implemented Central KYC (CKYC) process for
registration of newly on-boarded individual customers? KYC information on Central KYC
Registry. CKYC number was allotted to 439.86 lakh customers as of March 31, 2022. The Bank
has also implemented Video based Customer Identification Process (V-CIP) as an alternate
method of establishing the customer?s identity for on boarding new Tax Resident
Indian Individual customers.
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 18 Zonal Internal Audit Divisions to carry out
internal audit of branches/offices as per the periodicity decided by the Risk Based
Internal Audit Policy. All branches of the Bank are covered under Risk Based Internal
Audit. The summarized risk perception of all 8,167 branches & SITB (Specialized
Integrated Treasury Branch) for FY2022 are as under:
? 7340 Branches (89.87%) were in Low Risk
? 704 Branches (8.62%) were in Medium Risk
? 119 Branches (1.46%) were in High Risk
? 0 Branches (0.00%) were in Very High Risk
? 4 Branches with no rating (New Branches)
? SITB was in Low Risk
The Bank had engaged an independent firm as a knowledge partner for
comprehensive review of Audit function in-line with the processes focusing on
centralisation of activities by use of technology, imaging solutions and digitisation. The
audit transformation process was completed and audits under the revised approach have now
stabilized over the period.
Credit Monitoring
Monitoring of the credit portfolio is essential in order to maintain
and improve the asset quality of the Bank and minimize credit risks. The main objective of
Credit Monitoring is to ensure Compliance of sanction terms and end use of funds. It has
to further ensure that the credit assets remain in standard category, endeavour made for
up-gradation of identified stressed accounts/ watch list accounts and take corrective
action to prevent slippage of the accounts from Standard to NPA category. The Department
has been using various tools and methods for identifying and monitoring stressed accounts
with signs of weakness/ potential default/ delinquencies to ensure good asset quality
coupled with containment of probable slippages effectively.
Tools for efficient monitoring & control process:-
Early Warning Signal: A fully tech based EWS solution is
implemented in our Bank since August 2020. Our EWS is fully automated solution with in
built well defined work flow.
Alerts are generated based on both internal (CBS and Rating Data) and
External Data (MCA, CIC etc). The alerts generated helps the Bank for identifying
incipient weakness and initiate proactive timely remedial measures. The solution help the
Bank in early identification of fraud in accounts (if any). This solution also enables the
branches for close monitoring of accounts with appropriate resolution/ action.
CRILC Reporting: Identification of the accounts in SMA category
triggers mitigating steps, such as follow-up for regularization, restructuring etc. In
terms of RBI?s guidelines, stressed accounts with credit exposure of Rs. 5 crore and
above are reported to RBI on CRILC platform on a weekly basis.
Analytical Dashboard: Bank has devolved various analytical
Dashboard for identification stressed accounts (Viz SMA Dashboard, Future Demand
Dashboard, Collection efficiency Dashboard, Technical stress Dashboard for focused
monitoring.
System based prediction of Asset Classification (SASCL):
A predictive program is identifying the probable slippages showing
overdue of more than two months period based on record of recovery as well as for accounts
showing technical irregularities such as non-submission of Stock/QIS statement over three
months, insufficient/ no credit in CC accounts etc. This triggers focussed timely
corrective action to prevent downgrading of such accounts. These accounts are monitored
specifically by various operational units for minimizing the slippage of standard assets.
Credit Process Audit: Credit Process Audit (CPA) is to ensure
compliance of pre and post disbursement terms of sanction terms/ covenants, wherein it is
audited whether the disbursing officer, before parting with the Bank?s funds, has
taken all necessary measures for creation/ perfection of security with a view to ensure
enforceability of the said securities. This facilitates prompt corrective action, wherever
required, without waiting for the regular Audit/ Inspection, which usually takes place
with a time lag. CPA is integrated with the core system Finacle to monitor it on real-time
basis.
Stock Audit: We ensure timely conduct of Stock & Receivables
audit in eligible accounts and take active/ preventive steps wherever warranted. The stock
audit is applicable for standard advance accounts having working capital exposure of Rs.1
crore and above. It is required to be conducted annually for such accounts with exposure
below Rs.5 crore, while for accounts of Rs.5 crore and above, it is on a half yearly
basis. Assets showing inherent signs of weakness, such as out of order position, overdue
Bills under Letters of Credit, invocation of guarantees, review overdue etc., which pose a
threat to the Bank?s asset quality, are followed up at various platforms &
levels.
Daily marking of NPA: The Bank has migrated to daily marking of NPA
as per RBI guidelines to have better transparency in identification of NPA & for
compliance of regulatory guidelines.
Other monitoring tools:
? ?Centralized monitoring of pre-disbursement & post disbursement
covenants implemented for strengthening compliance level.
? Bank has appointed Agency for Special Monitoring (ASMs) for
specialized monitoring in accounts of Rs. 250 crore & above for verification of
transaction monitoring, inspections etc.
? Policies are in place for Red Flagging of accounts on observance of
EWS & examination of fraud angle within a specified timeline in terms of regulatory
guidelines.
Prompt reporting is ensured once account is declared as fraud, in
RBI?s CRILC platform.
? ?The Bank has also digitised the stock and book Debt statement
submission, which is real time and user friendly.
? The Bank has also initiated many tools in credit monitoring for
robust monitoring like GST, ITR & Statement analyser for analysing the strength of the
business.
Vigilance
The Vigilance administration in the Bank is professionally managed and
an integral part of management function. It promotes clean business transactions,
professionalism, productivity and ethical practices apart from control, monitor and
supervision of various vigilance functions. The Bank has a very strong and transparent
Vigilance Administration headed by Chief Vigilance Officer who oversees all vigilance
functions of the Bank as per the guidelines from the Central Vigilance Commission.
Participative / Proactive & Preventive vigilance are the important functions of
Bank?s vigilance administration.
The vigilance machinery in the Bank also imparts knowledge at all
levels about vigilance functions, extends help to various disciplinary authorities and
appointing authorities to act swiftly and correctly in examining issues arising out of
frauds, complaints and serious irregularities pointed out in various inspection reports of
branches/ offices.
The Bank has beefed up its vigilance setup at Zonal level to conduct
preventive audit of all branches at regular intervals and to act proactively on
information to control the damage at bare minimum level. The vigilance team shall focus on
preventive measures.
The vigilance function in the Bank consists of three sections:
1. Preventive Vigilance: Preventive measures hold greater
significance in containing damage than detection and punishment of corrupt and other
malpractices. Preventive measures such as inspections of sensitive areas of business,
identification of sensitive posts and scrutiny of personnel posted thereon, ensuring
observance of conduct rules, monthly meetings at branch level to discuss branch specific
vulnerabilities, training programmes for staff, regular scrutiny of inspections and audit
reports and circulars on preventive vigilance regularly issued and circulated by various
business verticals were undertaken to reduce the number of vigilance cases.
2. Detective Vigilance: Detective Vigilance includes
conducting regular and surprise inspection in the sensitive area to detect if there have
been any instances of corrupt or improper practices by the staff, undertaking prompt
scrutiny of annual property returns and take further action if called for, gathering
intelligence from own source about the misconduct / malpractices, examining the same for
logical conclusion through appropriate action after due process.
3. Punitive Vigilance: In addition to ensuring that
employees at all levels indulging in wilful and mala fide transgressions of rules and
provisions are not allowed to go unpunished, the Bank also ensures that bona fide
decisions taken in normal course of business are evaluated objectively and with required
prudence.
The vigilance function in the Bank enables proactive decisions by
stressing on strengthening systems and procedures through preventive vigilance
administration. It also plays a major role in identifying and plugging loopholes and
providing inputs to the top management in framing policies in fraud prevention. The
turnaround time of disciplinary cases improved due to proactive communication which helped
in motivating the employees with quick redressals.
Legal Service
The Bank has a vibrant legal department consisting of qualified and
experienced legal officers. The main role of the Legal
Department is to support and to provide assistance for various matters
relating to Opinion, Documentation, Litigation, etc., referred by or in relation to
various functional departments of the Bank. The department also provides support for
references submitted by the various zones, regional offices, domestic and foreign
branches, and subsidiaries of the bank on the matters related to legal aspects.
Further, in order to meet the digitalization of banking loan process, a
set of documents for retail and SME facilities compatible with digital lending platform
has been prepared which will enable Bank?s customers to execute the documents through
electronic means.
Additionally, the Department had launched the Advocate Portal, an
online system that facilitates the process of empaneling, renewing, and even reviewing
advocates? performance. In order to facilitate the faster process for vetting of loan
and mortgaged documents by Law Officers, the Department is currently working on
introducing a portal for this purpose that may facilitate the real time verification of
loan documents and the correction of discrepancies, if any, prior to disbursement of funds
and flawless record keeping that will enable easy retrieval when needed.
Human Resources
The Bank has a rich talent pool of over 79,000+ employees on its rolls.
The Bank has been continuously undertaking multiple initiatives for strengthening and
developing its human resources through various activities to increase employee
satisfaction, recruitment of right talent, addressing the training needs of employees,
employee engagement, taking care of health and wellness of the employees and capability
building.
The Bank has always been a forerunner in adopting and innovating new
concepts, practices and processes. At the core of all activities are ‘PEOPLE?
who are the key business enablers. Under the Bank?s organisational transformation
initiatives envisaging people, processes and systems, the Bank launched various innovative
employee centric initiatives and has also undertaken activities to revamp key systems and
practices.
Bank has always been recognized for its HR Policies and Practices in
the industry. During the last few years, the Bank is in the limelight for receiving number
of awards in recognition of its HR initiatives, reforms and excellence. During the current
year, Bank has been certified as ‘Great Place to Work? by ‘Great Employers
Pvt. Ltd.?. It is a gold standard recognition framework in assessing, enabling and
recognizing work place culture in the organizations around the globe. With this
certification, Bank has also made a distinctive mark as one of the organization with best
and progressive HR practices in the country.
The following initiatives have been taken during the year which have
had a direct and significant 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. The model helps the Bank in taking
key strategic decisions such as recruitment, deployment, promotions and trainings. During
the FY 2022, The Bank hired a good number of specialised staff with expertise in niche and
key focus areas to strengthen its capabilities in different domain areas.
Baroda GEMS "Growth and Empowerment Management System"
The Bank has put in place a scientific and objective driven Performance
Management System (PMS) named Baroda GEMS, which ensures greater clarity of roles &
expectations and is designed to suggest areas of improvement to employees as well. The
platform provides recognition to meritorious Officers who have demonstrated extraordinary
performance, while executing their duties.
This robust PMS paved the way for several waves of transformational
initiatives, each intended to realise untapped productivity
? Scientific and personalised target setting with built-in market
outlook
INSIGHT, a firstin the industry tool delivering personalised
performance analytics and forward looking priorities for employees to get system generated
feedback for improving their performance.
Job family and career path design is an opportunity for employees to
pursue a career based on their choice and enabling a focussed career path.
‘Baroda Rewards for Individual & Team Excellence? (BRITE)
is a holistic rewards and recognition programme that links performance to outcome.
Wellness and Fitness Drives
In addition to the 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 November
2021 under which preventive health checkups and fitness drives were conducted. More than
200 activities like Health Checkup, Eye/Dental Checkup, Blood Donation Camp, Yoga/Zumba
Camps, and Webinars by eminent health experts were organized. 17,000+ staff members and
700+ family members have been directly covered.
Employee Assistance Programme
Bank introduced ‘workplace counselling? called ‘Employee
Assistance Programme? (EAP). Under this initiative, employees can seek counselling
support for any issues including anxiety, depression, stress, insecurity, fears,
loneliness, loss of self-confidence, inter-personal relationships and communication
issues, family problems, bereavement, any traumatic situation, disease (like cancer,
etc.), addiction, motivation, personal development, work-life balance or any other issues
which disturbs peace of mind.
During the FY 2022, 335 workshops were conducted to sensitize the
employees on various aspects of mental, psychological and emotional wellbeing covering
more than 79,000 employees. More than 900 counselling sessions were conducted helping 723
employees to overcome their issues related to their mental and psychological health. These
counselling services were facilitated through multiple channels such as face-to-face
counselling, phone-call and video conferencing, emails and chats.
‘Voice of Barodians? - Employee Engagement Survey
As an organization with progressive HR practices, our Bank is open to
employee suggestions and encourages constructive and honest feedback from all employees on
a periodic basis. To facilitate this, Bank conducts ‘Voice of Barodians? -
Employee Engagement Survey, to understand the level of employee engagement and the opinion
of the employees on various factors affecting the engagement levels. As per the outcomes
of the latest ‘Voice of Barodians-2021? survey, the overall employee engagement
score for the Bank stood at 74% as against 63% in 2018, with an encouraging 11% increase
in employee engagement levels vis-?-vis the previous survey.
Baroda Anubhuti Programme
It is an employee engagement programme designed to foster the spirit of
team bonding and collaboration, camaraderie 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.
Response to COVID-19 pandemic
The Bank had geared up to address immediate issues of keeping employees
safe, provide banking facilities to customers/ general public and maintain continuity of
business operations. Some of the measures put in place by the Bank for providing timely
help and support to the employees during the 2nd and 3rd wave of pandemic are detailed
under:
? Provision of isolation rooms for COVID positive staff members in cities which were in
severe grip of the infection and facing dearth of availability of hospital beds.
? Reimbursement of hospitalisation/ home quarantine expenses incurred by employees for
COVID-19 treatment.
? Reimbursement of cost of vaccination by the Bank to employees and their dependent
family members.
? Payment of lumpsum amount of Rs. 25,000 to COVID infected staff members for defraying
the miscellaneous expenses incurred for treatment etc.
? Payment of ex-gratia/ additional financial assistance of Rs. 30 lakh to dependents of
employees in case of fatality due to COVID-19.
? Scholarship up to graduation level for children of employees who died in harness due
to COVID-19.
? COVID helpline put in place at Zonal centres and Corporate Office for enabling the
employees/ ex- employees to reach out in case of any emergency/ clarification related to
COVID.
? Bank provided ‘Doctor-on-call? facility for all its employees for any
concerns related to general health and wellness.
? One month gross salary paid as advance at "NIL" rate of interest to
employees who were in dire financial assistance for treatment of COVID.
? Vaccination Drives were held by Zonal & Regional Offices in coordination with
hospitals/ vaccination centres, local/ district authorities for immunization of staff/
their dependent members. More than 99% of the eligible employees have been vaccinated by
the Bank.
? Vulnerable section of our employees viz. Disabled employees, employees suffering from
chronic ailments, respiratory issues, pregnant lady employees etc. were permitted to work
from home/ granted special leave during the pandemic situation.
Learning and Development
The Bank always believes that learning and development plays a vital
role in shaping the organisation?s human capital. The Bank possesses a nimble and
agile learning system. The pandemic enabled accelerated movement towards setting up of a
robust digital training structure in the Bank which continues to cater to the learning and
developmental needs of the employees.
The Bank?s learning Management System, i.e. Baroda Gurukul?s
capabilities were harnessed to devise, deliver, and penetrate learning to all corners of
the bank including its overseas centres.
During the year, emphasis was laid on development of simulation and
games based learning owing to the latest developments in the learning pedagogy. Over 99%
of the officer employees were imparted minimum 30 hours of training during the year
through Apex Academy, 18 Zonal Academies and 4 Baroda Satellite Learning Units
(BSLU?s) along with eLearning through Baroda Gurukul.
Bank has also formulated Individual Development Plans for its
Executives and has also taken various interventions for ensuring their continuous growth
and development.
Ex-employees
In recognition of the invaluable services of our Ex-Employees, the Bank
continuously strives to put in place measures to make the post retirement life of our
retired Barodians, comfortable and hassle-free.
The Bank has put in place various measures for the welfare of its
ex-employees. It has also arranged to provide Health Check-up facility to Ex-employees
through health check-up facilitator, similar to that of existing employees, however at
their own cost to help them monitor their health. The health check-up packages are
carefully designed looking to the various categories of employees and considering their
affordability and requirements Bank has also appointed Zonal Nodal Officers for addressing
the grievances of Retired Employees.
The Bank is fully prepared to migrate its Ex-employee portal to
HR-Connect by the beginning of the next financial year. HR- Connect will provide one stop
solution to its ex-employees to access various modules and facilities viz. Pension Pay
Slips, PPO generation, Family Pension Conversion, Tax Computation, Holiday Home booking
etc.
‘We Lead? - Comprehensive Leadership Development
Programme
As part of business transformation initiative, Bank embarked upon the
second phase of WeLead programme named WeLead-II, for creating a robust and sustainable
pipeline of leaders who are ready to take on leadership roles and play an instrumental
role in driving the future growth of the bank.
WeLead-II assumed greater significance in the context of amalgamation,
since an important component of the programme included cultural assimilation aspect of
bringing high potential candidates from the -3- amalgamated entities.
The programme also focused on making the integration successful,
realizing synergies, maintaining the pace of growth and becoming future ready
organization. Around 1000 Executives in Scale-V and above have graduated from WeLead-II.
Reservation Cell
An exclusive cell has been functioning to monitor the reservation and
other enabling provisions for Scheduled Castes (SC) /Scheduled Tribes (ST) / Person with
Disabilities (PWD) /Ex-Serviceman (Ex-SM) and Other Backward Castes (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 (EWS) in all exercises for direct recruitment in the Bank was 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
Government guidelines.
Caste category wise count as on March 31, 2022
| Cadre |
SC |
ST |
OBC |
Ex-SM |
| Officer |
7334 |
3296 |
11984 |
574 |
| Clerk |
4581 |
2848 |
8222 |
2899 |
| Sub staff |
2690 |
919 |
2485 |
822 |
| Total |
14605 |
7063 |
22691 |
4295 |
| % to total staff strength |
18.55% |
8.97% |
28.81% |
5.45% |
Periodical Meetings: The Bank holds meetings with the
representatives of All India Bank of Baroda SC/ST (AIBOBSCST) Employees? Welfare
Association and half yearly meetings with the representatives of All India Bank of Baroda
OBC Employees? (AIBOBOBC) Welfare Association, for addressing their concerns.
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
its various training academies:
Pre-promotion training for SC/ST candidates. Workshop on reservation
policy. Training programme on disciplinary proceedings.
Career Progression
Concerted efforts have been taken by the Bank for fostering career
progression of employees for rewarding them for their performance and motivation.
Horizontal movement of officers across different functions and overseas placements
opportunities are provided to employees for wider exposure.
Thrust On Diversity & Inclusion
The Bank follows a non-discriminatory and equal opportunity policy for
all its employees and is transparent in all issues relating to promotion, career path,
transfer policy and employee benefit / welfare schemes. The Bank introduced
‘Job Roles? for visually impaired employees.
Further, in recognition of the concomitant responsibilities of women,
the Bank has put in place various facilities to support women employees such as Sabbatical
Leave, Health Checkup programme for women employees, establishment of Cr?che facility
etc. among other initiatives.
The Bank conducts special training programme on capability building and
motivation for its women employees and also creates awareness on POSH guidelines.
Document Management System
The Bank is one of the pioneer PSB to initiate implementation of
Document Management System (DMS) (First among PSBs to implement Records Digitisation) by
engaging professional companies to manage the records with an aim to give our Branches a
leaner look having better feel and experience to our customers. Under Records Management
System (RMS), physical records are barcoded, indexed and moved to Vendor?s warehouse
for storage thereof, which can be retrieved any time as per Bank?s requirement. The
space which is unlocked, is being utilized for setting up new ATMs/ E-lobbies or being
surrendered to save the cost.
Document Management System (DMS), is a major step towards paperless
banking under green initiative, encompasses scanning of identified documents (Loan Files/
HR documents/Legal documents and other critical documents) and uploading the scanned data
on "Baroda Document Management System (BDMS) server, a digital repository. This is an
ambitious project of our Bank under which around 36.45 crore images have already been
scanned covering more than -5,300- branches. Also, around -2.21- lakh sq. ft. of space has
been unlocked in identified Branches of BOB/eDena / eVijaya Bank. After successful
implementation of Records Management System (RMS) / Document Management System (DMS) in
Bank?s Metro & Urban and identifiedBranches of Semi-urban, it is now being
implemented in the remaining identified Branches of Semi-urban and Rural branches of the
Bank.
Premises Re-engineering
Following are some of the highlights of the Bank in an attempt to
reduce carbon footprint:
? ?Bank has obtained Green Building Certificate rating for Baroda
Corporate Centre and SILVER rating for Baroda Sun Tower Building) through IGBC (Indian
Green Building Council). Four of Bank?s buildings across PAN India have green
building rating and -43- more buildings are identified for Green Building.
? Bank is aiming to obtain platinum rating as per IGBC for its proposed
Baroda Apex Academy Building in Ahmedabad.
? 145 branches in rural/semi urban areas are being run on Solar Energy
only. Total 960 Tons of Carbon Dioxide Emission reduced as a result of using Green
Energy/renewable/solar energy. Further, more than 600 branches/premises are identified to
be powered by Solar Energy in phased manner.
? Dry Waste and Wet waste of Corporate Office buildings are being
segregated and the wet waste is processed in Bio-Gas plant.
? A Large size Bio-Gas plant (capacity of 500Kg wet waste) is installed
at Bank?s building at BKC, Mumbai which produces cooking gas (used in canteen) and
organic manure (used in garden/lawns)
? Rain Water harvesting facility has been made available in some of the
branches/premises and Bank is in the process for providing the same in many more branches/
premises.
Implementation of Official Language (OL) Policy
During the period under review, your Bank made outstanding progress in
implementing the Official Language Policy of Government of India. Besides compliance of
various statutory requirements under Official Language Policy of the Union Government and
directives issued by RBI, your Bank moved forward to promote Hindi as a tool for business
development. Your Bank adopted a well-structured Annual Action Plan for Official Language
in order to achieve various targets set by the Government of India under its Annual
Implementation Programme 2021-22 and the assurances given to the Committee of Parliament
on Official Language during its visits to various offices/branches of the bank. All the
assurances given to the Committee have been fulfilled within the prescribed time frame.
Your Bank?s efforts earned accolades from Government of India from time to time.
The Meetings of Central Official Language Implementation
Committee, presided over by MD & CEO/ Executive Director of the
Bank, were organized regularly on quarterly basis. Under the guidance from the Committee,
various new initiatives were taken during the year FY 2022. Your Bank has made remarkable
progress to provide Internet Banking, Mobile Banking and transaction SMS services,
whatsapp banking service to its customers in Hindi and various other Regional languages
for the convenience of customers. The Bank has also made arrangements for generation of
loan sanction letters containing terms and conditions, in Hindi along with English in its
loan processing package LLPS. Under various initiatives taken during the year, Your Bank
organised an All India seminar on ‘Cyber Crime in Banking? (GOLD in Mysuru
wherein representatives from RBI, Public Sector Banks, Insurance companies and other
Financial Institutes took part. As a new initiative, Bank implemented Official language
rating system for its Branches/ office and started ‘Bhashayi Choupal? programme
for its staff members at regular intervals digitally. Bank?s Self-service Passbook
printing machine ‘Kiosk? were enabled for printing of Passbook in Hindi for the
convenience of customers. Books on topics such as ‘Compliance Culture in
Banking? and ‘Retail Rin Margdarshika? were published. Hindi Diwas, Vishwa
Hindi Diwas and Matrubhasha Diwas were celebrated at various offices/branches across India
and overseas.
During the year, Town Official Language Implementation Committee
(TOLIC) functioning under the auspices of the Bank at Baroda was selected for first Prize
under "Rajbhasha Kirti Puraskar" scheme of Government of India for outstanding
performance in the area of Official Language Implementation under linguistic Region
‘B?. Similarly, TOLIC functioning under the auspices of the bank at Varanasi,
Jodhpur, Jaipur, Rajkot and Baroda were selected for awards by the respective regional
implementation offices of Government of India Bank?s Zonal office at Baroda &
Patna and Regional Office at Panaji & Varanasi were also awarded by the respective
regional implementation offices of Government of India outstanding performance in the area
of Official Language Implementation.
Bank continued with its unique scheme "Medhavi Vidyarthi Samman
Yojana" for popularising Hindi in 70 universities of the country. Under this scheme,
cash prizes and commendation certificates are given to two students securing First and
Second positions in M.A. (Hindi) examinations.
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 development
activities. The Bank as a responsible corporate citizen, continuously strives to
contribute towards social welfare & environmental protection, 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 organizations engaged in
various community development and socio-economic welfare activities for the benefit of
weaker sections and rural citizens.
The Bank has 64 Rural Self Employment Training Institutes (RSETIs) in
10 States/UTs across the country to impart skill development training to the youth of
rural and semi urban areas for generating self-employment. Since inception, these centres
have conducted 20,644 training programmes and imparted training to 5.75 lakh youth, out of
which 3.85 lakh have already setup their own ventures or have secured wage employment. All
the 64 RSETIs have been graded as "AA" (outstanding) by Ministry of Rural
Development, GOI based on the overall performance/functioning of the RSETIs. The Bank has
also set up 85 Financial Literacy Centres (FLCs) in 12 States/UTs which provide financial
counselling services and education to the people in rural, semi-urban 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. As per RBI directives, Bank has also set up 93 Centres for
Financial Literacy (CFLs) spread over 8 states and a Union Territory that are aimed at
imparting financial literacy in tribal and backward blocks through innovative and
participatory approach.
Bank has also rolled out a scholarship scheme for Girl Student School
Toppers of class X and XII studying in Government schools in 9 Aspirational Districts in
the states of Gujarat, Uttar Pradesh and Rajasthan.
As a part of Bank?s commitment towards protection of environment,
under Environmental, Social, and Governance (ESG) principles, Bank has implemented a pilot
of planting a tree against each Auto loan/Housing loan disbursement.
Bank has also donated to various social causes viz., distribution of
protective Kits to social workers under Project Chhaav, donation of vehicles to AIISH,
AIIMS and donating to Government Middle school of Chennai for its Smart Class project.
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 accepting
Non-Banking Finance Company (NBFC). BFSL was established in the year 1994 to cater to the
needs of a 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 merchant acquiring operations on the Bank?s behalf.
FY 2022 was a watershed year for BOB Financial. The aspiration to grow
into a leading Indian credit card issuer was evident in the many firsts, achievements and
investments that underlined the financial year, in spite of the challenges brought about
by the pandemic that continued in varying degrees.
Product launches and innovations were one of the key highlights of FY
2022, right from the issuance of RuPay credit cards to the global first launch of ConQR -
the two-in-one product combining credit card and QR acceptance that was done in
partnership with Mastercard (as it owns the patent). The company continued to implement
its two-pronged growth strategy (of BoB customers on one side and key partnerships on the
other) by entering into co-brand partnerships with both large and trusted organizations as
well as new age Fintechs. These included partnerships with Fintechs like FPL Technologies
(for OneCard) and CreditAI (for Unnati - the credit card for farmers), thereby positioning
the BOB Financial as an issuer that is receptive to new age partners. Co-branded credit
cards were also launched with IRCTC and the Indian Navy. The Indian Navy co-brand helped
BOB Financial to expand the portfolio of co-branded credit cards with the Defence Forces,
as Memoranda of Understanding were signed with the Indian Army, Assam Rifles and Indian
Coast Guard for launch of co-branded credit cards.
The company issued more than 5,00,000 new credit cards in FY 2022,
doubling the new acquisition done in FY 2021.
It also joined the elite club of issuers with a base of 1 Million or
more credit cards, thus positioning it as a force to reckon with, in the Indian credit
cards industry. In March 2022 itself, more than 1,30,000 new credit cards were issued,
making BOB Financial one of the Top 5 issuers (estimated) for the month.
Retail spends more than doubled compared to FY 2021, clocking
approximately Rs. 7,000 crore. This growth was made possible by relevant customer offers
across merchant categories, in partnership with leading offline and online merchants. At
any given time, more than 100 customer offers were live across regular and EMI spends.
The growth in retail spends was also a result of multiple initiatives
towards improving customer experience, in addition to launch of relevant products and
offers. Initiatives like self-service through website, IVR and SMS or programs like Add-On
cards for family, referral programs, topical campaigns on social media etc. all helped in
increasing customer engagement, leading to more than doubling the retail spends.
The focus on enhancing technology infrastructure continued in FY 2022.
The implementation of FirstVision - the leading Card Management System and the launch of
100% digital Credit Card journey on TABIT - Bank of Baroda?s digital origination
platform were the flagship achievements.
Several other initiatives across the customer lifecycle, from
origination to usage to retention, were undertaken in line with the strategic intent of
being a top ranking, customer-centric credit card issuer.
The company also continued to invest both in human resources as well as
points of presence, to effectively align with the 18 Zones and 148 Regions of Bank of
Baroda. This focus on leveraging the Bank?s distribution strength while building its
own is in line with BOB Financial?s growth aspirations.
(Rs. in crore)
|
BOB Financial Solutions Ltd. |
|
|
FY 2021 |
FY 2022 |
| Total Assets |
972.16 |
1562.45 |
| Net Profit/(Loss) |
10.73 |
10.07 |
| Net NPA levels |
NIL |
29.07 |
| Credit rating |
Crisil A1+ |
Crisil A1+ |
|
India rating |
India rating A1+ |
|
A1+ |
|
| Return on Assets |
1.14% |
0.66% |
BOB Capital Markets Ltd.
BOB Capital Markets Ltd. (BOBCAPS), a wholly owned subsidiary of Bank
of Baroda is a SEBI registered Category-I Merchant Banker and also a Stock Broker with
memberships of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
BOBCAPS offers a wide spectrum of financial services that includes fund
raising from primary markets /PE funds, debt syndication, stressed asset resolution,
equity valuation, mergers and acquisitions advisory and stock broking (both institutional
and retail). It has two operating segments, viz. Investment Banking and Broking &
Distribution.
BOBCAPS further strengthened its position in both its business segments
in FY 2022, and remains optimistic about the future potential of its businesses, primarily
on account of growing depth of Indian capital markets and post-COVID resurgence in the
economic activities in the country. However, BOBCAPS acknowledges the challenges emanating
from the recent rate actions by several central banks across the world including by the
RBI and ongoing geo-political conflicts.
(Rs. in crore)
|
BOB Capital Markets Ltd |
|
| Particulars |
FY 2021 |
FY 2022 |
| Total Assets |
175.59 |
187.97 |
| Net Profit/(Loss) |
9.34 |
7.72 |
| Customer base (Nos) |
26,715 |
35,191 |
| Total number of branches |
1 |
2 |
Baroda Global Shared Services Ltd.
Baroda Global Shared Services, Bank?s wholly owned subsidiary
resulted from a strategic decision made by the Bank in 2017, with an intention of
integrating service functions into a single entity thus reducing service duplication and
business unit silos, creating synergies and economies of scale. Bank has been able to
achieve improved efficiency and cost saving because of centralisation. It has also led to
redeployment of large workforce to Branches from job roles that could be automated. This
setup has enabled the Bank to focus more on the sales and service function. The setup also
has contributed significant value by sell initiatives for the Bank.
Based on the successful set-up and scaling-up of centralised processing
by BGSS, Bank expressed confidence in BGSS by deciding to utilise its capabilities in the
new areas of sourcing loans and improving collection efficiency, thereby augmenting
Bank?s capacity. In FY 2021-22, BGSS launched Direct Sales Team and Collection Unit
for the Bank.
To aid Bank?s Financial Inclusion objectives, BGSS has been
empanelled as a Corporate Business Correspondent of the bank to deploy BC agents Pan-India
(especially in semi-urban and rural areas) in FY 2022.
The Shared Services also ensures robust and stringent controls in place
through various internal and external assessments conducted from time to time, leveraging
the centralised execution for availability of data sets through common platforms. Some of
the key achievements of BGSS are as follows: Some of the key achievements of BGSS from the
last FY:
1. More than 750 Direct Sales Team (DST) resources were deployed to
generate additional Loan business (HL, AL, EL & LAP) for the Bank.
2. More than 90% month on month collection of instalments achieved
during FY 2022 by the Collections Unit set-up at Vadodara through Feet-on-Street (FOS)
resources and Vendors managed by BGSS.
3. Transaction processing activities related to Bank products is rolled
out through Business Correspondent (BC) points appointed and managed by BGSS.
4. BGSS continue to excel in Cross Sell business by booking Rs.1,000
crore. in Trade Finance and sourcing more than Rs.10,000 crore. in retail loans through
contact centre (including through Digital Lending Platform).
5. As part of continuous cum ongoing exercise to improve customer
experience especially in terms of doing business with EASE, some of the initiatives taken
by BGSS include on boarding of more than 1,000 customers in Baroda Insta-Trade Platform
(Digital platform for customers to initiate and process trade transactions), rolled out
Queue Management system (QMS) to improve customer service at Branches and deployed
resources across locations to improve processing accuracy and speed for Home Loan File
Log-ins at Specialised Mortgage Stores (SMS).
6. A dedicated IT Platform was set up to help Implement BC Sakhi
on-boarding across various districts of UP state to facilitate banking transactions in
rural areas of UP.
7. BGSS continues to grow and improve efficiency across metrics like
productivity, First Time Right (FTR), turnaround time (TAT), ATM uptime and
error-reduction through various initiatives.
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, Maharashtra. The company has been formed to provide system
integrator services, consultancy and IT development services on matters relating to IT
enabled business solutions / IT software product implementation across various lines of
business for the Bank.
The Company is yet to commence full-fledgedoperations and it is
envisaged to initiate activities like programme / project management services to implement
enterprise-wide IT projects and development of financial products and solutions to
effectively cater to various business needs providing technological edge 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: Uttarakhand, Uttar Pradesh, Delhi and National Capital Region (NCR), Haryana and
Rajasthan. NBL has 164 branches as on March 31, 2022. The total business of NBL increased
to Rs. 11,698 crore on March 31, 2022 from Rs. 11,441 crore as on March 31, 2021. The Bank
posted a net profit of Rs. 33.01 crore in FY 2022 against a net profit of Rs. 1.26 crore
during the previous year.
Baroda BNP Paribas Asset Management India Pvt. Ltd (BBNPA AMC)
BBNPP AMC is a joint venture between Bank of Baroda (50.10%
shareholding) and BNP Paribas Asset Management Asia Ltd (49.90% shareholding). This
Company is the Asset manager for Baroda BNP Paribas Mutual Fund. Bank of Baroda and BNP
Asia had signed binding agreements on October 11, 2019 to merge their Asset Management and
Trustee Companies in India. On receipt of regulatory approvals and completing the
necessary formalities under SEBI(MF) Regulations, the entities got merged effective March
14, 2022. The merged entity leverages strength of two partners - Bank of Baroda?s
strong brand name, reach and understanding of retail market and BNP Paribas?s global
know-how to grow the business.
Following the merger, the product range, AUM as well as share of equity
to AUM has increased substantially with touch points in 90 towns and cities across India.
(Rs. in crore)
Baroda BNP Paribas Asset Management India Pvt. Ltd.
| Particulars |
FY 2021 |
FY 2022 |
| Total Assets |
78.39 |
147.18 |
| NetProfit/ |
1.76 |
(20.00) |
| Assets under Management |
8,220.15 |
23,393* |
| Equity to overall AuM (%) |
37% |
60% |
*Includes advisory AuM of Rs.2,188 crore.
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.663 crore. The company is a domestic subsidiary of Bank of Baroda promoted along with
Carmel Point Investments India Private Limited, owned by private equity funds managed by
Warburg Pincus LLC. Union Bank of India is company?s third strategic partner.
In FY 2022, IndiaFirst Life is the fastest growing Life Insurer in
Individual New Business APE at 50% YoY growth with 2.4% private market share and grew at
3.2 times the overall Life Insurance Industry (including LIC). This super record of
growing at a faster rate than overall Industry has been upheld by IndiaFirst Life for last
consecutive 8 years (since FY 2014-15). The company improved its ranking by 1 position to
11th in Individual New Business APE (Annual Premium Equivalent) among the private peers as
compared to last year and has assets under management (AUM) at Rs.18,932 Crores as on 31st
March 2022.
IndiaFirst Life was certified as a Great Place to Work (GPTW) for the
fourth time in a row, a recognition considered as the gold standard for defining great
workplaces across business, academia and government organisations along with being
recognised among the ‘Best Workplaces in BFSI? by GPTW BFSI Survey fourth time
in a row. The Company was also awarded the "Life Insurance Company of the Year"
at the India Insurance Summit 2022.
India Infradebt Ltd.
India lnfradebt Limited (Infradebt) is the first Infrastructure Debt
Fund (IDF) NBFC to commence operations in India. Bank of Baroda and ICICI Bank are the
Sponsors of Infradebt, while other shareholders include Citicorp Finance (India) Limited
and Life Insurance Corporation of India. Infradebt finances the relatively safe, completed
infrastructure projects which have achieved at least one year of commercial operations.
Infradebt has been rated AAA/Stable outlook by CRISIL, ICRA and India Ratings since
inception. Infradebt also enjoys 100% income-tax exemption on all its income.
The synergy with the Bank arises from Infradebt?s focus on lending
to strong, stable infrastructure projects - mainly renewable energy projects and road
projects, thus promoting green energy in India and contributing to nation building.
Infradebt business has grown steadily, with a loan book as of Rs.14,729 crore, Net Profit
of Rs.330 crore (as per Indian GAAP) and Return on Equity of 14% during FY 2022. Infradebt
has also been paying dividends continuously for the past five years.
A brief summary of all the Bank?s domestic subsidiaries and Joint
Ventures is given below:
| Entity |
Owned funds |
Total assets |
Net profit |
Offices |
Staff |
| BOB Financial Solutions Ltd |
287.56 |
1562.45 |
10.07 |
40 |
410 |
| BOB Capital Markets Ltd. |
165.03 |
187.97 |
7.72 |
2 |
103 |
| Baroda Sun Technologies Limited |
4.55 |
4.47 |
0.09 |
1 |
1 |
| Baroda Global Shared Services Ltd. |
20.53 |
32.02 |
9.07 |
5 |
1113 |
| The Nainital Bank Ltd. |
607.04 |
8337.85 |
33.00 |
5 |
941 |
| Baroda BNP Paribas As- set Manage- ment India Pvt. Ltd. |
152.57 |
147.18 |
-20.00 |
13 |
150 |
| Baroda BNP Paribas Trustee India Pvt. Ltd. |
0.09 |
0.24 |
0.012 |
1 |
1 |
| IndiaFirst Life Insurance Company Ltd. |
493 |
19,765 |
(282) |
29 |
3,272 |
| India Infradebt Limited |
2,431.1 |
16,922.8 |
329.9 |
1 |
25 |
Awards
In recognition of Bank?s excellent performance in financial,
digital front and other unique initiatives, the Bank was conferred with many awards and
accolades during the FY 2022 which are given below;
| Month |
Details of the Award received during FY 2022 |
| April 2021 |
Bank of Baroda was declared Joint-Winner under Digital
Lending & Winner under Digital Services in the PSB- Merged category at ASSOCHAM
National E-Summit & Awards - Banking & Financial Lending Companies |
| May 2021 |
Bank of Baroda won the Silver Award in the "Best Public
Sector Bank of the Year " category at the 20th Edition of Outlook Money Awards
Additional information: |
|
Outlook Money Awards Knowledge Partner, Care Ratings Ltd.,
and its eminent Jury board found Bank of Baroda has done well in all the parameters in
FY20 compared to other Public Sector Banks. BoB?s Composite score is 3.83 out of 5. |
| June 2021 |
Bank of Baroda was recognised at the 4th
edition of The Economics Times Iconic Brands of India 2021, which featured success stories
of the most distinguished brands. Additional information: |
|
Executive Director Shri Vikramaditya Singh Khichi virtually
addressed the audience at the ‘The ET Iconic Brands of India 2021? Virtual
Summit, which featured success stories of the most distinguished brands, while also
outlining their DNA and knowing what makes brands stand out from the clutter. The virtual
awards also carried a video byte of Shri Purshotam, CGM - Retail Liabilities, WMS,
Marketing, and Capital Markets & NRI Services, speaking about the brand?s vision
during the pandemic. |
| September 2021 |
Bank of Baroda was conferred with the award for Best Digital
Banking Product for bob World at the 4th Edition of The Economic Times BFSI
Innovation Tribe Awards. |
| October 2021 |
Bank of Baroda, its sponsored RRBs, UTLBC Dadra & Nagar
Haveli & Daman & Diu (Convenor Bank of Baroda) bags 6 top performing awards under
various campaigns held for enrolment of Atal Pension Yojana from Pension Fund Regulatory
and Development Authority (PFRDA) Additional information: |
|
Leadership Capital 3.0 (Jan-Feb 2021) award of excellence to
Best Performing Managing Director, Shri Sanjiv Chadha, MD & CEO, Bank of Baroda APY
Big Believers 3.0 (March 21) awards of appreciation to Best Performing Executive Director,
Shri Vikramaditya Singh Khichi Leadership Capital 3.0 (Jan-Feb 2021) award of Excellence
to Best Performing Chairman of RRB, Shri Prabhat K Sharma, Chairman, Baroda Gujarat Gramin
Bank. |
|
APY Big Believers 3.0 (March 21) awards of Par Excellence to
Best Performing Chairman of RRB, Shri Prabhat K Sharma, Chairman, Baroda Gujarat Gramin
Bank. |
|
Leadership Capital 3.0 (Jan-Feb 2021) award of Excellence to
Best Performing Chairman of RRB, Shri R.C. Gaggar, Chairman, Baroda Rajasthan Kshetriya
Gramin Bank Annual Award, Award of Par Excellence, Best Performing UTLBC, Dadra &
Nagar Haveli and Daman & Diu. |
| December 2021 |
Bank of Baroda has been recognised among the 50 Most Trusted
BFSI Brands of India, 2021 by Team Marksmen in association with NDTV 24X7 |
| December 2021 |
Bank of Baroda was recognized in four categories at the
Chamber of Indian Micro Small & Medium Enterprises? (CIMSME) MSME Banking
Excellence Awards 2021. |
|
Best MSME Bank - Winner |
|
Best MSME Friendly Bank - Winner |
|
Best Branding - Runner-up |
|
Best Bank for Promoting Social Schemes - Runner-up |
| February 2022 |
Bank of Baroda was conferred with two awards "Best in
Innovation" and "Best In Fintech Initiative" at the 26th Edition of the
Business Today-KPMG Best Banks Survey 2020-21 |
| February 2022 |
Bank of Baroda has been named the Best Technology Bank for
the 2nd year in a row at Indian Banks? Association?s (IBA) 17th
Annual Banking Technology Conference, Expo & Awards. |
|
Bank of Baroda was also the Runner-Up for Best Use of AI/ML
& Data Analytics and Best IT Risk Management & Cybersecurity. |
Dividend Distribution Policy
Board of Directors of the Bank has recommended a dividend of Rs. 2.85
per share for the financial year ended March 31, 2022. The total outgo in the form of
dividend will be Rs. 1,473.84 crore. The payment of dividend is subject to requisite
approvals. The dividend distribution policy is given in this Annual Report and is also
available on the Bank?s website.
Board of Directors (Appointment / Cessation of Directors during the
year) Appointments
? Smt. Parvathy V. Sundaram was appointed as RBI Nominee Director
w.e.f. April 13, 2021 by the Central Government u/s 9 (3) (c) of the Banking Companies
Acquisition and Transfer of Undertakings) Act, 1970, until further orders, vice Shri Ajay
Kumar.
? Shri Alok Vajpeyi was elected as Shareholder Director under section 9
(3) (i) of the banking Companies Acquisition and Transfer of Undertakings) Act, 1970, for
a period of three years from July 9, 2021 to July 8, 2024.
? Central Government has extended the term of office of Shri Ajay K.
Khurana, Executive Director u/s 9 (3) (a) of the banking Companies Acquisition and
Transfer of Undertakings) Act, 1970, for a period of two years beyond his currently
notified terms which expires on regarding September 19, 2021, or until further orders,
whichever is earlier.
? Central Government has extended the term of office of Shri
Vikramaditya Singh Khichi, Executive Director u/s 9 (3) (a) of the banking Companies
Acquisition and Transfer of Undertakings) Act, 1970, for a period beyond September 30,
2021 till the date of his superannuation, i.e. July 31, 2022, or until further orders,
whichever is earlier.
? Shri Joydeep Dutta Roy was appointed as Executive Director w.e.f.
October 21, 2021 by the Central Government u/s 9 (3) (a) of the banking Companies
Acquisition and Transfer of Undertakings) Act, 1970, for a period of three years from the
date of assumption of office, or until further orders, whichever is earlier.
? Shri Srinivasan Sridhar was re-elected as Shareholder Director under
section 9 (3) (i) of the banking Companies Acquisition and Transfer of Undertakings) Act,
1970, for a period of three years from December 12, 2021 to December 11, 2024.
? Shri Ajay Singhal was nominated as Part-Time Non- Official Director
on the Board of Bank of Baroda w.e.f. December 21, 2021 under section 9 (3) (h) of the
banking Companies Acquisition and Transfer of Undertakings) Act, 1970, for a period of
three years from the date of notification, or until further orders, whichever is earlier.
? Dr. Hasmukh Adhia was re-nominated as Part-Time Non- Official
Director on the Board of the bank by the Central Government u/s 9 (3) (h) of the banking
Companies Acquisition and Transfer of Undertakings) Act, 1970, his period of appointment
as non-executive Chairman has been extended for a further period of two years with effect
from March 1, 2022, or until further orders, whichever is earlier.
Cessations
? Shri Shanti Lal Jain ceased to be Executive Director w.e.f. September
1, 2021, on his appointment as Managing Director & Chief Executive Officer of Indian
Bank.
? Shri Ajay Kumar ceased to be RBI Nominee Director w.e.f. April 13,
2021, on the appointment of Smt. Parvathy V. Sundaram.
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
Governance: the The Auditors? Compliance Certificate
compliance of the conditions of Corporate Governance for the year 2021-22 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, 2022
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 in accordance with guidelines issued by the RBI in this regard and that
such internal financial controls 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 placed on record their appreciation for the contribution
made by Shri Shanti Lal Jain outgoing Executive Director and Shri Ajay Kumar.
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 our valued clients for their continued patronage and support.
The Directors acknowledge with deep appreciation for 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.
Sanjiv Chadha
Managing Director and CEO