Bank of Baroda
Directors Reports
"Your Directors have pleasure in presenting the One Hundred and
Fifteenth 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, 2023 (FY
2023)."
Business Performance & Key Financials
(Rs. in crore)
Particulars |
FY 2022 |
FY 2023 |
Global
Deposits |
10,45,938.56 |
1203687.79 |
of which -
International Deposits |
1,18,927.99 |
156312.58 |
Domestic
Deposits |
9,27,010.57 |
1047375.21 |
of which |
Current Account Deposits |
68,779.64 |
75110.67 |
| Savings Bank Deposits |
3,41,343.27 |
367399.83 |
Domestic CASA
Deposits |
4,10,122.92 |
442510.50 |
Domestic CASA
to Domestic Deposits (%) |
44.24 |
42.25 |
Net Advances |
777155.18 |
940998.27 |
of which |
Domestic Advances |
653381.55 |
776589.63 |
| International
Advances |
123773.63 |
164408.64 |
Global Gross
Advance |
818120.39 |
969548.31 |
Total Business
(Global Deposit + Global Gross Advance) |
1864058.95 |
2173236.10 |
Total Assets |
12,77,999.83 |
1458561.54 |
Net Interest
Income (NII) |
32621.34 |
41356.01 |
Other Income |
11483.95 |
10025.84 |
Of which Trading
Gains |
2728.76 |
1062.50 |
Operating
Income (NII + Other Income) |
44105.29 |
51381.58 |
Operating
Expenses |
21716.44 |
24518.31 |
Operating
Profit |
22388.85 |
26863.54 |
Provisions (Other
than Tax) |
13002.41 |
7136.90 |
of
which-Provisions for NPAs and Bad debts written off |
14640.12 |
4,350.52 |
Profit Before
Tax |
9,386.44 |
19726.64 |
Provision for Tax |
2,114.16 |
5617.02 |
Net Profit |
7,272.28 |
14109.62 |
Appropriations/Transfers |
|
|
Statutory Reserve |
1,814.34 |
3,527.40 |
Capital Reserve |
523.35 |
92.57 |
Particulars |
FY 2022 |
FY 2023 |
Revenue
and Other Reserves |
I)
General Reserve |
827.40 |
7274.12 |
II)
Special Reserve u/s 36 (I) (viii) of the Income Tax Act 1961 |
250.00 |
300.00 |
III)
Investment Reserve Account |
0.00 |
0.00 |
IV)
Investment Fluctuation Reserve |
2,368.42 |
30.00 |
V)
Statutory Reserve (Foreign) |
14.93 |
41.28 |
Proposed
Dividend |
1473.84 |
2,844.25 |
Total deposits of the bank increased to '12,03,688 crore during FY 2023
from '10,45,939 crore during FY 2022, there by registered a growth of 15.1 % on a YoY
basis. The domestic CASA of the bank recorded a growth of 7.9% on YoY basis, to reach to
the level of '4,42,511 crore, during FY 2023. The Domestic Deposit marked a growth of 13%
on a YoY basis, which increased to '10,47,375 crore, during the FY 2023. The Net advance
of the bank increased to '9,40,998 crore during FY 2023 from '7,77,155 crore during FY
2022, there by recorded a growth of 21.1% during the period. The Global Gross advance of
the Bank reached to the level of '9,69,548 crore in FY 2023 as compared with '8,18,120
crore in FY 2022 by registering a growth of 18.5% on a YoY basis. The Total Business of
the Bank grew to '21,73,236 crore in FY 2023 crore from '18,64,059 crore in FY 2022,
registered a growth of 16.6% on YoY basis.
Net Interest Income of the Bank increased to '41,356 crore in FY 2023
from '32,621 crore in FY 2022, registered a growth of 26.8% on a YoY basis. Other Income
of the Bank stood at '10,026 crore in FY 2023 which was at '11,484 crore in FY 2022.
Operating expenses of the Bank stood at '24,518 crore in FY 2023 as compared with '21,716
crore in FY 2022. Operating Income of the Bank increased to '51,382 crore in FY 2023 from
'44,106 crore in FY 2022, registered a growth of 16.5% on a YoY basis.
The Bank reported a Net Profit of '14,110 crore in FY 2023 which was
nearly double of previous year's Net Profit of '7,272 crore. The Operating profit of
the Bank grew by 20% to reach to '26,864 crore in FY 2023 as compared with '22,389 crore
in FY 2022.
Key Performance indicators
Key
Performance Indicators |
FY
2022 |
FY
2023 |
Net
Interest Margin - Global (%) |
3.03 |
3.31 |
Cost-Income
Ratio (%) |
49.24 |
47.72 |
Return on
Average Assets (ROAA)(%) |
0.60 |
1.03 |
Return on
Equity (%) |
11.86 |
18.34 |
Book
Value per Share (Rs.) |
118.97 |
148.80 |
Basic EPS
(Rs.) |
14.06 |
27.28 |
Net Interest Margin (NIM) global improved to 3.31% in FY 2023 as
against 3.03% in FY 2022. Cost to income ratio decreased to 47.72% in FY 2023 from 49.24%
in FY 2022. Return on Assets for FY 2023 improved by 43 bps to 1.03% in FY 2023 from 0.60%
in FY 2022, reflects exceptional performance in profitability. Return on Equity increased
by 648 bps to 18.34% in FY2023. Book value per share increased to '148.80 in FY 2023 from
'118.97 in FY 2022. Earnings Per share increased to '27.28 in FY 2023 from '14.06 in FY
2022.
Average Cost & Yield of funds and Average Interest earning Assets
Key
Performance Indicators |
FY 2022 |
FY 2023 |
Average
Cost of Funds (%) |
3.64 |
4.08 |
Average
Yield on Funds (%) |
6.49 |
7.17 |
Average
Interest Earning Assets (Rs. in crore) |
10,77,177 |
12,49,846 |
Average
Interest Bearing Liabilities (Rs. in crore) |
10,24,804 |
11,81,750 |
The average cost of fund and yield of fund stood at 4.08% and 7.17% in
FY 2023. Average Interest bearing asset increased to '12,49,846 crore in FY 2023 from
'10,77,177 crore in FY 2022. The Average Interest Bearing Liabilities also increased to
'11,81,750 crore in FY 2023 from '10,24,804 crore in FY 2022.
Capital Adequacy Ratio (CAR)
(Ratios in %)
Particulars |
FY
2022 |
FY
2023 |
Capital
Adequacy Ratio Basel III |
15.68 |
16.24 |
CET I |
11.42 |
12.24 |
Tier I |
13.18 |
13.99 |
Tier
II |
2.50 |
2.25 |
The Capital Adequacy Ratio (CAR) of the bank increased to 16.24% as of
March 31, 2023 from 15.68% as of March 31, 2022. CET-1 ratio increased to 12.24% in FY
2023 from 11.42% in FY 2022. The consolidated group capital adequacy ratio increased to
16.73% as of March 31,2023 as compared with 16.19% as of March 31,2022.
During FY 2023, the Bank issued Additional Tier I (AT-I) capital bonds
of '2,474 crore.
Net worth
The Bank's net worth as of March 31, 2023 was '76,591.07 crore
comprising of paid-up equity capital of '1,035.53 crore and reserves of '97,187.36 crore
(excluding revaluation reserves, foreign currency translation reserves and other
intangible assets). The book value of the share (Face Value '2) was '148.80 as of March
31,2023.
Provisions towards Retirement and other benefits
During FY 2023, the Bank made provision towards contribution to
gratuity ('125.75 crore), pension funds ('2911.62 crore), leave encashment, additional
retirement
benefits and other benefits ('78.51 crore). Total provisions under
these categories amounted to '3115.88 crore during FY 2023.
Dividend Distribution
Board of Directors of the bank has recommended a dividend of '5.50 per
share for the financial year ended March 31,2023. The total outgo in the form of dividend
will be '2,844.25 crore. The payment of dividend is subject to requisite approvals.
Management Discussion and Analysis
Global Economy
The world economy witnessed a major shock in the first quarter of the
calendar year with Russia invading Ukraine. This had an immediate response of a ban being
imposed by the western powers on dealings with Russia that led to supply chain
disruptions. This in turn affected the overall pace of growth across various geographies.
Global economic growth moderated to 3.4% in 2022 from 6.3% in 2021 according to the IMF,
due to several factors such as war, disruptions in trade, zero covid policy of China,
aggressive action by central banks to quell inflation etc.
The situation was further exacerbated by cost of living crisis in many
countries amidst high inflation, tightening financial conditions due to higher rates and
prolonged impact of the Russia-Ukraine war and Covid-19 pandemic. Growth in Advanced
Economies (AEs) halved to 2.7% in 2022 from 5.4% in 2021. Within this group, growth in
Euro Area moderated to 3.5% in 2022 compared with 5.4% in 2021. This was led by France and
Italy. Growth in US also slowed down to 2.1% from 5.9% in 2021.
Growth in Emerging and Developing Economies (EMDEs) held up better,
expanding by 4% in 2022, after increasing by 6.9% in 2021. A severe slowdown in growth in
China from 8.5% in 2021 to 3% in 2022 accounted for most of the moderation in growth in
this region. China had gradually withdrawn from their strict stance on zero-covid by the
end of the year and normalized economic activity, albeit in a phased manner.
On the prices front, global inflation remained elevated at 8.7% in 2022
compared with 4.7% in 2021. Higher global commodity prices due to the Russia-Ukraine war
as well as strained global supply chains were responsible for the steep increase in
prices. Inflation in several AEs as well as EMDEs remained well over the central
banks' targets. In fact, inflation in several AEs such as UK surged to double digits
during the year.
To bring inflation under control, global central banks world over
raised policy rates aggressively. Amongst major AE central banks, US Fed has raised policy
rates by 500bps, followed by Bank of England (BoE) and European Central Bank (ECB) with
rate hikes of 440bps and 375bps respectively, in the same period. Amongst Emerging Markets
(EMs), central banks in Brazil and Indonesia have also raised policy rates aggressively.
The aggressive stance of the Fed also led to the dollar strengthening
in the global market with the parity level with euro being breached for a short while.
This did cause virtually all currencies to depreciate against the dollar. The rupee held
out relatively well falling the median level of depreciation across major currencies.
Global trade volumes dipped in 2022 amidst a decline in global growth
and demand. Volume of goods and services trade moderated to 5.1% from 10.6% in 2021. This
was led by a sharp deceleration in volume of goods export to 2.6% compared with 10.7% in
2021. Volume of goods imports was also lower at 4% in 2022 compared with 11.5% in 2021.
Uncertainties have once again risen over the global growth outlook.
Financial conditions have tightened considerably as global central banks embarked on an
accelerated monetary policy tightening path, amidst stubbornly high inflation. This
coupled with the recent stress seen in the banking system due to the failure of a few US
regional banks as well as strain in Credit Suisse, a systemic important bank, impinge on
the growth outlook. Concomitantly, inflation though declining has remained stubbornly high
led by core, and with continued strength in the labour market can prove to be even more
long lasting. This can lead to a much more aggressive stance by global central banks which
will further tip the scale against a possible growth recovery.
Based on this, IMF projects global GDP growth at 2.8% in 2023 with
risks heavily tilted to the downside. In fact, the report notes that the possibility of a
"hard landing" have increased. Growth in AEs is expected to moderate further to
just 1.3%. This will be led by a sharp slowdown in growth in Euro Area to just 0.8%.
Significantly, growth in Germany, the region's biggest economy is expected to
contract by 0.1%. In UK, output growth is expected to decline by 0.3%. Growth in US is
expected at 1.6%.
On the other hand, growth in EMDEs is expected at 3.9%, slowing only
marginally. This will be supported by a strong rebound in growth in China, which is
expected to grow by 5.2%. This will offset the loss in momentum in activity in other
countries such as India, Brazil and South Africa. India's growth is projected at 5.9%
for the year against RBI's forecast of 6.5%.
While inflation is expected to moderate, the pace has been much slower
than anticipated. Global inflation is expected to decelerate to 7% in 2022. While global
commodity prices have corrected, led by food and fuel, core inflation in several economies
has continued to remain high and is yet to peak in several countries across the globe.
Hence, this could necessitate more rate hikes by global central banks which will further
push growth lower.
Indian Economy
India's economy registered a strong growth of 7.2% in FY23, much
higher than anticipated signal resilience in the economy. Agriculture and allied
activities registered a growth of 4% compared with 3.5% in FY22. Even Financial, real
estate and professional services recorded a strong growth of 7.1% in FY22 against 4.7% in
the previous year. Despite global headwinds at play, Indian economy is poised to do
much better than the global counterparts on the back of strong domestic
fundamentals.
Industrial activity, came down from a high base of 11.4% in
Apr-Mar'22, to 5.1% in Apr-Mar'23. This was led by slowdown in manufacturing and
mining activity, while electricity production continued to inch up. Manufacturing activity
moderated by 4.5% in FY'23 period versus 11.8% growth noted in during FY'22.
Mining output eased to 5.8% during Apr-Mar'23 from 12.2% in Apr-Mar'22.
Electricity production growth on the other hand remained robust and rose by 8.9% in
FY'23 compared with 7.9% in the previous year. Separately, services sector performed
very well, as was also indicated by services PMI (averaged 57.3 in FY23 versus 52.3 in
FY22). GST collections, port cargo volume, rail freight, property sales and domestic
passenger growth all did well in FY23.
The steady growth in FY23 was also positive for the government as the
fiscal deficit target (6.4%) has been achieved as per the provisional estimates. The same
for FY24 has been targeted at 5.9%. FY23 target was achieved owing to buoyancy in overall
revenue receipts which were higher under the provisional estimates at '23.8 lakh crore in
FY23 against a revised estimates (RE) of '23.5 lakh crore. Collections under net tax
revenue also beat RE and rose to '21 lakh crore from '20.9 lakh crore. Thus, higher
outlays on certain essentials like fertilizer subsidies ('2.51 lakh crore as per FY23PE
versus '2.25 lakh crore as per FY23RE), capex, was achieved without any untoward pressure
on the government finances.
Despite moderation in economic momentum in FY23, prices continued to
remain elevated. CPI inflation averaged 6.7% in FY23, up from 5.5% in FY23, thus also
crossing RBI's upper tolerance band of 6%. Q1FY23 was when inflation was at its peak
(7.3%), following the breakout of war between Russia and Ukraine in Feb'22. Since
then, as global economic outlook was dampened (global GDP at 3.2% in CY22 versus 6% in
CY21), domestic inflation began coming down (Q2: 7%; Q3: 6.1%; Q4: 6.2%). Core inflation
too remains sticky (6.1% in FY23 versus 6% in FY22). Following the dip in core inflation
in Q2FY23 (5.9% versus 6.3% in Q1), it has again inched up and steadied at 6% in Q3 and
Q4. In the current fiscal year (FY24), RBI expects headline CPI to ease to 5.2%. However,
significant upside risks to the projection remain, such as adverse climate conditions
(heat wave, actual performance of monsoon), increased fodder cost and imported
inflationary pressures.
The external situation in FY23 was strained as trade deficit ballooned
to US$ 267bn from US$ 191bn in FY22. Coming off a high base and due to weakening global
demand, our export growth slowed to 7.2% in the last fiscal year, following 54% growth
witnessed in FY22. On the other hand, relative stability in domestic demand and volatile
commodity prices led to less sharper dip in imports (19% in FY23 versus 64% in FY22).
Forex reserves, which is the summary indicator of all developments on this front fell by
US$ 39.2bn to reach US$ 578.4bn as of March 31,2023. The rupee, on a point to point basis,
ended at '82.18/$ on 31st March 2023 compared with '75.79/$ a year back, thus showing a
depreciation of 7.8%. This was in line with depreciation witnessed across most currencies
due to strengthening US dollar.
On the monetary policy front, RBI has increased repo rate by 250 bps in
FY23, in line with global central banks. In its first policy for FY24 RBI decided to
pause, but has indicated that it stands ready to take action if inflation does not fall
within the targeted band.
Going forward, RBI expects FY24 growth to settle at 6.5%. As most
developed economies are projected to enter recession/ face significant slowdown in
economic activity in CY23, and uncertainty prevails in global financial systems, risks to
our domestic growth persists. On the positive side, prediction of normal monsoon, enhanced
government budget for capex spending, and ebbing inflation, will provide support to growth
in FY24. Our expectation is that GDP growth will be in the region of 6-6.5% for FY24..
Developments in Indian Banking
Credit growth of Scheduled Commercial Banks (SCBs) rose at a double
digit of 15% as of March 2023 from 8.6% as of March 2022. The faster pace of credit off
take is attributable to pent up demand factor as normalisation of economic activity gained
pace. Sector wise, pick up in credit was driven by services where credit on an average
rose by 19.8% in FY23 compared with 8.7% in FY22. Within services, lending to NBFCs
improved significantly to 30.2% in FY23 versus 7.8% in FY22. Credit to the personal loan
segment also grew at a healthy pace of 20.6% from 12.6%. Within this segment, education,
vehicle and housing loan grew at a robust pace. Credit to industry on the other hand,
moderated and grew by 5.7% in FY23 from to 7.5% in FY22. Apart from large industries (3%
from 2%), credit to both medium (19.6% from 54.4%) and micro and small enterprise (12.3%
from 23%) showed moderation.
A plausible explanation could be that this sector is still reeling
under liquidity pressure despite government's support in terms of ECLGS scheme and
RBI's support in terms of extension of moratorium. Notably, weighted average lending
rates of SCBs on fresh rupee loans rose to 9.32% as of March 2023 compared to 7.63% as of
March 2022. Clearly higher borrowing cost did not put a strain in the rising credit cycle
of the economy.
Growth in deposits also picked up to 9.6% as of March 2023 compared to
8.9% as of March 2022. This is to be noted that, the pace of deposit accretion in FY23 has
been much slower compared to the pace of accretion in credit. Within deposits, time
deposits grew at a steady pace of 10.2% as of March 2023 from 8.6% as of March 2022. In a
rising interest rate cycle, where weighted average domestic term deposit rates of SCBs
rose by 113bps (5.03% as of March 2022 to 6.16% as of March 2023), household's
preferred choice has been bank deposits for better returns due to risk aversion factor.
During the year, the repo rate increased by 250bps, from 4% in April
2022, it rose to 6.5% in March 2023. Apart from the 250bps increase in repo rate, RBI has
also introduced Standing Deposit Facility (SDF) at a rate 40 bps higher than the fixed
rate reverse repo. Thus, the effective rate hike since April has been 290 bps. The
overnight MCLR rose sharply to 7.5-8.5% as of 31 March 2023 from 6.45-7.00% in the same
period of previous year and in consonance with rising policy rate. The
term deposit rate for deposit of above 1 year rose to 6.00-7.25% compared to 5.00-5.60%.
The 10-year Gsec rate increased by around 49bps to 7.32% from 6.83%
during this period. Another notable thing worth mentioning is, FY23 witnessed considerable
flattening of the yield curve. The difference between long end papers (29Years maturity)
and short term papers (6months paper) fell sharply to 31bps as on 31 March 2023 compared
to 306bps as on 31 March 2022. This is because of sharp pace of increase in short term
papers with increase in policy rate, whereas long end yields remained broadly stable.
Going forward, some degree of steepening in India's yield curve may be observed as
higher proportion of borrowing in H1FY24 is concentrated towards longer tenor papers.
FY23 witnessed quite a bit of volatility on liquidity front. Liquidity
went into deficit with pressure from TLTRO redemption and gradual scale back of liquidity
measures undertaken during the pandemic period. However, RBI's fine tuning operations
through conduct of Variable rate repo and reverse repo supported liquidity to an extent
which did not put stain on productive lending to sectors. On an average, liquidity surplus
fell down to '1.6 lakh crore in FY23 compared to '6.5 lakh crore in FY22.
On the banking front, RBI's Dec'2022 Financial Stability
Report highlighted that Indian banks are well capitalized and are in a well-equipped
position to absorb any macroeconomic shocks. Under baseline scenario, GNPA ratio of SCBs
is likely to improve to 4.9% in Sep'23 from 5% in Sep'22. Even the slippage
ratio which has been on the uptrend since Dec'21 has cooled off in Q2FY23. PSBs have
registered the most improvement during this period.
EASE
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.
EASE4.0
With innovative technologies & tools such as AI, Automation, data
analytics and technical support services, critical backend 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 consistently secured
1st position in all quarters of FY22 among all the Public Sector Banks.
The Bank topped in the themes ‘Smart Lending for Aspiring
India' and ‘New Age 24*7 Banking' while consistently improving the
performance in the themes ‘Governance and Outcome-centric HR',
‘Institutionalizing Prudent Banking' and ‘Tech-enabled ease of
Banking‘.
EASE 5.0
The EASE 5.0 agenda mainly focusses on Enhancing Digital Customer
Experience, Data-driven Integrated and Inclusive Banking with emphasis on supporting small
businesses and agriculture.
Further, EASE 5.0 continues to drive progress in ongoing agendas such
as co-lending partnerships, mobile banking enhancements, payments in semi-urban and rural
areas, cloud adoption, digital marketing improvement through Search Engine Optimization
and deepening financial inclusion.
Under EASE 5.0, Bank has -
• Launched Digital Lending Journey for Pension Loan, MSME Term
Loan Renewal
• Enhanced MSME & Agri functionalities in Mobile Banking and
Internet Banking
• Improved use of Analytics to enable customer retention; increase
product penetration
• Further enhanced the services provided at call centres
• Increased thrust on promotion of gender diversity
• Introduced advanced stress testing model for retail and MSME.
• Introduced digital and analytics driven Collection; set up
operating hubs for driving collection function
• Provides customised services, nudges, reminders based on
analytics driven mining of transaction history and customer data in BOB World
• Provides open APIs with Introduction of Repository for
use cases and documentation, Sandbox Testing platform - It lets you
interact with APIs, Mocked API response is in Bank's own Developer Portal
• Increased focus on Digital Adoption in semi-urban and Rural
Areas
All through the past five years, EASE reforms agenda has contributed
immensely towards the PSBs' journey in achieving efficiency and ease of operations in
almost all areas of operations, helping the Banks in providing an enhanced experience to
the customers.
EASE Next (Pillar - II):
Bank-specific 3-year roadmap program: Creation of bank- specific
three-year strategic roadmaps, conceptualised to each bank's starting position and
business priorities, to enable reforms above and beyond the common reform agenda.
Strategic 3-Year Roadmap: As a part of EASENext's second
pillar, 3-year strategic roadmap is conceptualised. The program has been designed with a
view to encourage banks to adopt transformational initiatives that go beyond the common
reforms agenda.
For this purpose, 45 wide-ranging financial and non-financial metrics
have been identified. Each bank will identify shortterm and long-term targets for each
metric, and identify initiatives to drive improvement in these metrics.
Project BOB-NOWW:
The journey to shape the future Bank of Baroda continues
In the year 2020, Bank of Baroda embarked on a transformation journey -
BOB-NOWW to build an industry-first operating model through new ways of working and
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:
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 network this year. As of March 2023, the
total number of touch points grew to over 51,000, jumping close to 24 percent YOY.
A dedicated BC 2.0 programme have been introduced which not only
focuses on increasing the BC network at potential areas but also on increasing BC earnings
by adding Asset Products such as housing, personal, auto, agriculture loan leads in their
service portfolio. This programme continuously monitor their performance through
publishing of leaderboards and dashboards.
Collection: Collection saw a revamped organization structure with more
focus on product based vertical structure. Collections organization has been set up with
receivables managers across all levels from Branch to central level. It leverages BC
network also to drive agri collections. An integrated digital collection platform have
been introduced for allocation, collections, tracking and performance management. Pilots
with two Fintech vendors have also been launched for digital interventions. Collaborations
have been made for successful execution. Implementation tracking is being done through
dashboards and initiative owners have been identified.
DST channel for Agri Tractor Loan: BOBNOWW introduced DST model in
Tractor loan product to give it the necessary boost. Tractor loan campaigns have been
launched to expand the benefits of DST model across 10 identified zones. These campaigns
have given encouraging results simultaneously establishing well-structured existing DST
model across 10 zones.
DST channel for Home Loan: Bank has engaged Baroda Global Shared
Services Limited (BGSS) for setting up of Direct Sales Team (DST) channel to generate and
fulfil business leads related to Retail Assets. DST channel is being set up with an
objective to help Bank in acquiring new business in an accelerated manner.
NRI helpdesk: BOBNOWW initiated establishment of centralized NRI help
desk at GIFT City for Account opening, e mail management and toll free contact center in
order to provide superior customer service to its NRI clients.
Digital led experience: The Bank moved a step closer to its goal of
digitizing critical banking services and processes, starting with the launch of 49
self-assisted customer journeys that enables faster and straight-through processing of
transactions.48 bob World service outlets has been opened at different locations to serve
the customer digitally. E- Mandate service have also been launched to facilitate the
customers for online registration of mandate. Through the paperless office initiative,
approval process have been digitized, bringing transparency and accountability to the
operations.
Under branch reformatting, we have enabled the branches with requisite
infrastructure to service the customers through digital mode and provided other enablers
for enhanced customer experience & service.
Adopting digital channels allows for improved productivity and
efficiency among the Bank staff and helps customers solve queries swiftly. To provide best
in class service in the quickest possible manner, we embarked on the journey of
on-boarding customers to our best in class Banking App bob World Over a period of -2-
Years, i.e. FY 2022 and 2023 we have added 2 Crs customers on to our bob World platform, a
feat achieved through collective team work. We cumulatively, now we have 3 crore customers
on boarded on bob World platform wherein their continuous engagement is the key to further
growth.
Operating Performance & Key Ratios
The highlights of operating performance of the bank are as below:
(Rs. in crore)
Particulars |
FY 2022 |
FY 2023 |
Interest
Earned |
69880.78 |
89588.54 |
Interest
Expended |
37259.44 |
48232.53 |
Net
Interest Income (NII) |
32621.34 |
41356.01 |
Other
Income |
11483.95 |
10025.57 |
Of which-
Trading Gains |
2728.76 |
1062.50 |
Operating
Income (NII + Other Income) |
44105.29 |
51381.58 |
Operating
Expenses |
21716.44 |
24518.31 |
Employee
Expenses |
11978.84 |
13352.66 |
Other
Operating Expenses |
9737.60 |
11165.65 |
Operating
Profit |
22388.85 |
26863.54 |
Provisions
(Other than Tax) |
13002.41 |
7136.90 |
of
which-Provisions for NPAs and Bad debts written off |
14640.12 |
4,350.52 |
Provision
for Standard Advances |
(2672.26) |
527.50 |
Provision
for Depreciation on Investment |
558.97 |
1704.03 |
Other
Provisions |
475.58 |
554.85 |
Profit
Before Tax |
9386.44 |
19726.64 |
Particulars |
FY 2022 |
FY 2023 |
Provision
for Tax |
2114.16 |
5617.02 |
Net
Profit |
7272.28 |
14109.62 |
Net Interest Income of the Bank increased to '41,355 crore in FY 2023
from '32,622 crore in FY 2022, registered a growth of 26.8% on a YoY basis. This was
mainly due to increase in the Interest Income to reach to '89,589 crore in FY 2023 by
registering a growth of 28.2% on a YoY basis. The Interest Expense stood at '48,233 crore
in FY 2023 which was at '37,259 crore in FY 2022.
Other Income of the Bank stood at '10,026 crore in FY 2023 which was at
'11,484 crore in FY 2022. Operating expenses of the Bank stood at '24,518 crore in FY 2023
as compared with '21,716 crore in FY 2022. Operating Income of the Bank increased to
'51,382 crore in FY 2023 from '44,106 crore in FY 2022, registered a growth of 16.5% on a
YoY basis.
Total provisions (other than tax) and contingencies declined to '7137
crore during FY 2023 from '13,002 crore during FY 2022. Provisions for Non- Performing
Assets (NPA) declined to '4351 crore crore in FY 2023 from Rs 14,640 crore in FY 2022.
The Bank reported a net profit of '14,110 crore in FY 2023 which was
increased nearly double of previous year's Net Profit of '7,272 crore. The Operating
profit of the Bank grew by 20% to reach to '26,864 crore in FY 2023 as compared with
'22,389 crore in FY 2022.
Key Ratios
Key
Ratios |
FY
2022 |
FY
2023 |
Cost of
Deposits - Global (%) |
3.52 |
3.89 |
Cost of
Deposits - Domestic (%) |
3.85 |
4.09 |
Cost of
Deposits - International (%) |
0.48 |
2.37 |
Yield on
Advances - Global (%) |
6.79 |
7.54 |
Yield on
Advances (Domestic) (%) |
7.61 |
8.25 |
Yield on
Advances (International) (%) |
2.18 |
4.21 |
Net
Interest Margin - Global (%) |
3.03 |
3.31 |
Net
Interest Margin - Domestic (%) |
3.09 |
3.42 |
Net
Interest Margin - International (%) |
1.47 |
1.94 |
Cost-Income
Ratio (%) |
49.24 |
47.72 |
Return on
Average Assets (ROAA) (%) |
0.60 |
1.03 |
Return on
Equity (%) |
11.86 |
18.34 |
Cost of deposit (global) stood at 3.89% and Yield on Advances (global)
improved to 7.54% in FY 2023. Net Interest Margin (NIM) global and NIM domestic improved
to 3.31% and 3.42% in FY 2023 as against 3.03% and 3.09%
respectively in FY 2022. Cost to income ratio decreased to 47.72% in FY
2023 from 49.24% in FY 2022. Return on Assets for FY 2023 improved by 43 bps to 1.03% in
FY 2023 from 0.60% in FY 2022, reflects exceptional performance in profitability. Return
on Equity increased by 648 bps to 18.34% in FY2023.
Resource Mobilisation
(Rs. in crore)
SL
No |
Particulars |
FY 2022 |
FY 2023 |
I |
Total
Deposits |
10,45,938.56 |
12,03,687.79 |
II |
International
Deposits |
1,18,927.99 |
1,56,312.58 |
III |
Total
CASA |
4,33,605.23 |
4,75,096.83 |
IV |
Total
Current Account Deposits |
88,861.21 |
1,04,000.51 |
V |
Total
Savings Bank Deposits |
3,44,744.02 |
3,71,096.32 |
VI |
Global
CASA % |
41.46 |
39.47 |
VII |
Domestic
Deposits |
9,27,010.57 |
10,47,375.21 |
VIII |
Domestic
CASA Deposits |
4,10,122.92 |
4,42,510.50 |
IX |
Dom.
Current Account Deposits |
68,779.64 |
75,110.67 |
X |
Dom.
Savings Bank Deposits |
3,41,343.27 |
3,67,399.83 |
XI |
Domestic
CASA to Domestic Deposits
(%) |
44.24 |
42.25 |
Total Deposit of the Bank increased to '12,03,688 crore during FY 2023
from '10,45,939 crore during FY 2022, there by recorded a growth of 15.1% during the
period. The International Deposit of the Bank also increased to '1,56,313 crore as on
31.03.2023 from to '1,18,928 crore as on 31.03.2022, recorded a robust growth of 31.4% on
a YoY basis.
The global CASA of the bank increased to '4,75,097 crore as on 31st
March 2023 from the level of '4,33,605 crore as on 31st March 2022, registered a growth of
9.8% on a YoY basis. The global current deposit of the bank increased to '1,04,001 crore
as on 31st March 2023 from '88,861 crore as on 31st March 2022, marked a growth of 17% on
a YoY basis. The global Savings deposit of the bank increased to '3,71,096 crore as on
31st March 2023 from '3,44,744 crore as on 31st March 2022, recorded a growth of 7.6%
during the period. The global CASA % to global deposit stood at 39.47% during the period.
Domestic Deposits and Domestic CASA
Domestic Deposit of the Bank increased to '10,47,375 crore as on
31.03.2023 from '9,27,011 crore as on 31.03.2022, registering a growth of 13% during the
period.
Bank's domestic CASA deposits increased by 7.90% and rose to
'4,42,511 crore as on March 31, 2023. Bank has achieved Domestic CASA ratio to the
domestic deposit of 42.25% during FY 2023. Current Account deposits registered growth of
9.20% and reached to '75,111 crore, while Savings Bank deposits reached to '3,67,400 crore
with an increase of 7.63% as on 31.03.2023.
Low cost deposit mobilization initiatives
During FY 2023, Bank opened 1.09 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. Baroda
Professional Savings account, RERA Current accounts, Current Account for Government
Bodies. Extensive focus was given on Government business relationships and acquiring new
accounts particularly SNA accounts of Centrally sponsored schemes across States. Special
Emphasis was given for Increasing penetration of Key CASA enablers like POS, IPG& BCMS
and activation of dormant accounts.
On Digital front, Bank has increased penetration of client acquisition
through digital channels like VCIP, TAB & Digital ONLY accounts and during the FY
2023, 1,22,020 VCIP
Savings Accounts, 87,290 B3- Digital only A/c were opened. Also out of
2,71,800 Current Accounts opened during the year, 2,30,046 Current Accounts (89.88% of
eligible Current Accounts opened) and out of 72,27,954 Non FI Savings accounts opened
during the year, 62,50,104 Non FI Savings Accounts ( 97.90% of eligible Non FI Savings
accounts opened) were opened through TAB during FY 2023.
Bank's integration with the Ministry of Corporate Affairs Portal
for opening Current Accounts of newly formed Companies has yielded opening of 4,641
current accounts during the year.
Bank is having 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.
Bank is leading from front in extending Door Step Banking Services
through the PSB Alliance Door Step Banking Services. Bank has successfully completed
1,42,955 Door Step Banking service requests during FY 2023.
Baroda Cash Management Services
The Bank's cash management business, Baroda DigiNext, providing a
wide range of Omni-channel digital solutions for Corporate and Government Customers for
management of their cash flows and liquidity has witnessed rapid growth in the last 3
years. 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 in addition to solutions used by Corporates. It provides
valuable information on real-time basis of all receipts - electronic, cheques and cash
deposits at all its branches.
Baroda DigiNext Cash Management continues to rapidly expand its
footprint acquiring more than 1,700+ new large corporate and government relationships in
FY 2023. Over 6,600 large customers of the bank are utilizing Bank's cash management
services for executing over 6 crore transactions during the year.
Credit Expansion
The Global Gross advance of the bank increased to '9,69,548 crore
during FY 2023 from '8,18,120 crore during FY 2022, thereby registering a growth of 18.5%
on YoY basis. The gross domestic advance increased to '7,95,560 crore as on 31st March
2023 from '6,84,153 crore as on 31st March 2022, there by marked a growth of 16.3% during
the period. The international gross advance of the bank increased to '1,73,988 crore
during FY 2023, from '1,33,968 crore during FY 2022, there by registered a robust growth
of 29.9% on a YoY basis.
(Rs. in crore)
Credit
Portfolio of the Bank |
Segment |
FY
2022 |
FY
2023 |
YoY
(%) |
Retail* |
1,40,399 |
1,78,037 |
26.8 |
Agriculture |
1,09,796 |
1,24,247 |
13.2 |
MSME* |
96,863 |
1,08,196 |
11.7 |
Corporate |
3,00,693 |
3,40,408 |
13.2 |
Others |
36,402 |
44,672 |
22.7 |
Gross
Domestic Advances |
6,84,153 |
7,95,560 |
16.3 |
International
Gross Advances |
1,33,968 |
1,73,988 |
29.9 |
Global
Gross Advances |
8,18,120 |
9,69,548 |
18.5 |
*Ex-pool purchase (Organic)
The growth in Advance portfolio was supported by Retail Advance
(organic) which increased to '1,78,037 crore grew by 26.8%, Agriculture advance which
increased to '1,24,247 crore grew by 13.2%, MSME (organic) segment which rose to '108,196
crore by 11.7%, on a YoY basis during FY 2023. The retail advance including pool purchase
stood at '187,688 crore and MSME including pool purchase stood at '1,14,918 crore as on
31.03.2023.
The growth in Retail advance (organic) portfolio was led by key
portfolios like Personal Loan Auto Loan (organic) which grew by 24.4% to reach to '31,261
crore, Home Loan (organic) which grew by 19.5% to reach to '98,014 crore, Personal Loan
which grew by 101.5% to reach to '19,645 crore, Mortgage Loan (organic) which grew by 18%
to reach to '16,801 crore and Education Loan which grew by 21.8% to reach to '8,196 crore
on a YoY basis.
Corporate Loan of the Bank increased to '3,40,408 crore in FY 2023 from
'3,00,693 crore in FY 2022, grew by 13.2% on YoY basis.
The bank was highly benefited by its continuous focus on digital
banking backed by latest technology. The Bank has launched many new initiatives on its
ditgital platform like Pre-approved Auto Loan, Digital Education Loan, Preapproved Home
Loan Top-up, Digital Pensioner Loan etc. The digital loan products was also extended to
MSME and Agri segments wherein Bank has got a very good responds. The Bank has also well
focused on key segments through its traditional banking activities by launching various
campaigns at branch, regional and zonal level to augment maximum quality loan business.
The continuous and equal focus on its branch banking and digital banking helped the bank
to expand its loan portfolio in a healthy manner during FY 2023.
Corporate Credit
Corporate credit in the Bank is serviced through 30 specialized
Corporate Financial Services (CFS) & Mid Corporate branches (MCB) which manage
approximately 90% of the total standard corporate credit portfolio of the Bank. The
corporate credit portfolio of the Bank increased to '3,40,408 crore as on March 31,2023.
With revamp in approach towards corporate credit delivery, the risk
profile of the portfolio further improved during FY 2023 as observed in the rating
distribution of domestic credit portfolio as below:
Credit
Rating Distribution* |
FY
2022 |
FY
2023 |
A and
above |
78% |
86% |
BBB |
10% |
7% |
Below BBB |
6% |
3% |
Unrated |
5% |
4% |
*External Rating Distribution of Domestic Advances above '50 crore
Total portfolio comprising of A and above in FY 2023 was 86% as against
78% in the previous year.
Corporate Banking - Revamped Structure
During the year bank has revamped its Corporate Banking Structure with
a strategy to focus more on Mid Corporate Advances. Bank has opened -4- Mid Corporate
Clusters located at strategic locations i.e. New Delhi (North), Chennai (South), Mumbai
(West) and Kolkata (East). During the year bank has opened -15- New Mid Corporate branches
across the country for quick processing of corporate proposals and tap the opportunities
available in the Mid Corporate Segment.
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, CMS facility and other retail products.
• During FY 2023-24 bank is planning to open additional -6- New
Mid Corporate Branches across the country.
MSME Credit
The MSME portfolio of the Bank increased to '1,14,918 crore (excluding
TWO)in FY 2023 from '1,00,131 crore in FY 2022, registered a growth of 14.8% on a YoY
basis. The MSME (organic) business reached to '1,08,196 crore in FY 2023 from '96,863
crore in FY 2022, thereby registered a growth of 11.7% on a YoY basis. During the year,
the Bank has taken many business initiatives to augment maximum MSME business into its
fold which helped the Bank to achieve a healthy business growth in MSME segment.
Bank has achieved the Target (106%) under PMMY Scheme for the FY 2023.
As on Mar'23 - Bank has sanctioned PMSvanidhi loan to 4,81,771
applicants and disbursed facilities to 4,45,511 customers.
To reach to the above target following initiatives have been taken by
the department:
• Fast-track lane for NTB customers & simplified AIP/
Modifications for ETB and NTB customers - focus for reduction of TAT.
• "MSME Mahotsav" campaign, was launched on 15.06.2022
with aggressive pricing to capture quality MSME NTB business. The Campaign was in force
upto Mar'23. Under the campaign, we have disbursed '10,162 cr. to 17,677 customers.
• "The Last Mile" Campaign was launched for Q4-
FY'23 with a target to canvass quality MSME accounts preferably with term loan
facilities.
Performance under the campaign:
(Rs. in crore)
Targets |
Sanction
Amount |
Disbursement
Amount |
9,935 |
13,921 |
11,848 |
• Scheme specific campaign "Raftaar" was launched for CV
and CME and recorded 225% growth in FY'23.
• New Product: - "Scheme for Financing Micro units engaged in
Exports" has been floated.
• Modification in Baroda Property Pride (Overdraft) and Launch of
a new scheme LAP Premium (Term Loan)
• The new Baroda Healthcare scheme with focus on providing
collateral-free finance to medical equipment, to ‘micro to mid-level' healthcare
professionals/Doctors/ Diagnostic centers/ Hospitals/ Clinics located in Tier 1,2 & 3
cities, for purchase of healthcare equipment based on cash flow assessment has been
launched.
• Bank entered into MoU arrangement with Hyundai Construction
Equipment India Pvt. Ltd, for obtaining business leads in construction & mining
equipment, for 2 years
• MOU with Aerem Finance Pvt. Ltd: Our bank has come with a
collateral free scheme to finance Solar Rooftop Projects for captive use by MSMEs.
• MOU with LiuGong India Pvt. Ltd. Equipment's: Construction
Equipment's financing under our bank CV- CME scheme.
• Co-Lending :- Financing under Co-lending model with Paisa Lo
Digital Limited which is actively involved in extending loans to SMEs with focus on small
ticket size to individuals (mainly women)
Launch of Unsecured Loans to MSMEs under co-lending arrangement: We had
launched the product under colending arrangement with UGRO Capital Limited on Digital
Co-Lending platform on 31.03.2023.
Retail Credit
The Retail Asset of the Bank increased to '1,87,688 crore (excluding
TWO)in FY 2023 from '1,50,253 crore in FY 2022, registeed a growth of 25% on a YoY basis.
The organic Retail Loans increased to '1,78,037 crore in FY 2023 from '1,40,399 crore in
FY 2022, an increase of 26.8% over the previous year. Retail Assets constitutes 23.5%
(excluding LABOD and Staff Loan) of Domestic Advances as on 31st March 2023.
Retail portfolio of the Bank
(Rs. in crore)
Retail
Portfolio |
Portfolio |
FY
2022 |
FY
2023 |
YoY
(%) |
Retail
Loans* |
1,40,399 |
1,78,037 |
26.8 |
Home
Loans* |
82,009 |
98,014 |
19.5 |
Auto
Loans* |
25,130 |
31,261 |
24.4 |
Mortgages
Loans* |
14,242 |
16,801 |
18 |
Education
Loans |
6,731 |
8,196 |
21.8 |
Personal
Loans |
9,748 |
19,645 |
101.5 |
Gold
Loans |
1,371 |
2,420 |
76.5 |
Others |
1,168 |
1,700 |
45.5 |
*Ex-pool purchase (Organic)
The key highlights of retail business in FY 2023 include:
• Our Bank got award for "Best Bank in Home Loan and Car
Loan" from NAVBHARAT Group.
• Our Bank got award for "Best Bank in Home Loan" from
Financial Express.
• Our Bank got award for "BEST PERFORMING PRIME LENDING
INSTITUTION" under PMAY (U) CLSS from HUDCO.
• Bank's Mortgage-based loan book (Home, Mortgage and Rent
Receivables) stood at '1, 25,737 crore as on 31st March 2023 (excluding TWO)
• Within Retail segment (Excluding Two) Organic Auto, Education
and Home loans posted an increase of 24.96%, 24.55% and 19.52% respectively.
• Personal Loans Book of Bank increased by 102%.
• Bank opened 2 more new Specialised Mortgage Stores (SMS), with
that SMSs increased to 137 as on 31st March 2023. These stores are located all across the
country to deliver specialized and faster mortgage-based retail credit delivery.
• Introduced Home Loan to Corporates and special offerings to
Govt. Employees.
• 1357 NewProjectApproved.
• DST channel strengthened, number of DSTs increased to 2101 as on
31.03.2023 from 660 as on 31.03.2022.
• Digital End-to-End Auto Loan journey for ETB / NTB Pre-approved
& non-preapproved journey launched. 1562 digitally end-to-end Auto Loans sanctioned
and disbursed amount of '131.53 Crores.
• Presence on Maruti & Hyundai online portal.
• Google Top 10 search ranking achieved - Education Loan #1st
position with FAQ scheme snippet.
• Digital End-to-End Education Loan launched for study in Premier
Institutions.
• In Education Loan, Bank disbursed amount of '2799.38 Crores in
the financial year 2022-23 as against disbursement target of '2030 Crores given by DFS.
• Digital End-to-End non pre-approved Personal Loan for ETB / NTB
launched.
• New API - 2.0 integrated in LLPS for account opening in FINCALE
which will reduce efforts & improve account opening data quality as well as prevent
fraud / MIS reporting.
• Mobile App for post sanction inspection in Retail Loan launched.
• Baroda Loan against Future Rent Receivable (FRR), Home Loan,
Mortgage Loan, Education Loan schemes revamped.
• BCs been engaged for Home Loan, Auto Loan & Other Retail
Loans.
• Implemented retention & cross sell process.
• Automated Pool Portfolio for NPA classification &
provisioning in line with RBI directions.
• Introduced digital End-to-End loan to Pensioners, Top- up Loan
to Home Loan customers.
• Introduced Mobile Apps for file login by partners.
Rural and Agricultural Lending
Agriculture, with its allied sectors, is unquestionably the largest
livelihood provider in India, more so in the vast rural areas and it also contributes
significantly to the Gross Domestic Product (GDP).
Bank has a network of 8,200 domestic branches, of which 4,942 rural and
semi urban branches are leveraged fully for priority sector and agriculture lending. The
Bank's agriculture advances increased to '1, 24,247 crore as on 31st March 2023
forming about 16% of the gross domestic credit.
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 the Union Territory of Dadra and Nagar Haveli and Daman and Diu. Bank
also shoulders the Lead Bank responsibility in 69 districts across the country.
Bank continues to be one of the leaders 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 based 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.
In the recently concluded ‘BEST' campaign under AIF launched
by Ministry of Agriculture and Farmers Welfare, our Bank secured the 1st position under
"Achievers of Campaign Sanction Target" by achieving 113.50% of target among all
Commercial Banks. Bank has also qualified in the remaining two categories i.e.
"Amount sanctioned under AIF" and No. of project sanctioned" among TOP 5
Banks from the Banking Industry.
Bank continues to focus on its flagship products like KCC, Agri Gold
Loans, Farm mechanisation (Tractor loans), Horticulture loans, Financing to Self Help
Groups (SHGs), Financing to Farmer Producer Organization / Farmer producer company
(FPO/FPC), Hi-tech Agriculture and Food and agro-processing. During the year, the Bank has
issued 3.17 lakh new Kisan Credit Card (KCC) of which 1.18 lakh are Animal Husbandry and
Dairy (AHD) KCC issued to farmers engaged in animal husbandry and fisheries activities. As
part of its microfinance initiatives, Bank has credit linked 84,573 SHGs by granting loans
amounting to '2,899 crore during FY 2023.
Bank is pursuing tie ups with various 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 was introduced last year. In Tractor
loans, rate of interest has been linked with LTV of Tractor for the convenience of
farmers. Our Bank is a partner in the development of the digital KCC journey, on the Jan
Samarth portal, initiated by the Government of India. It is expected to go live in a few
months. We have already introduced a digital journey for Gold Loans.
Bank had introduced Centre for Agriculture marketing and Processing
(CAMP), a dedicated centralized centres for processing of agriculture loans with a special
focus on nontraditional and high value Agri advances. During FY 2022-23, CAMP has
sanctioned loans to 30,473 farmers, amounting to '2,898 crore.
Bank had also organized its unique annual customer outreach programme
"Baroda Kisan Phakwada" from 15.11.2022 to 30.11.2022. During the fortnight long
programme, a total of -20152- outreach programmes like Farmer Meetings/ Choupals/ Kisan
Melas/ Health Camps (Soil / Animal / Farmer) etc were organized by the Branches/ Regions
& Zones, connected with -3,87,179- farmers.
Priority Sector Lending
Priority sector advances of the bank increased to '2, 87,589 crore
during FY 2023 from '2,60,818 crore during FY 2022, growing @ 10.26 %. Bank achieved the
mandatory targets under all the categories of Priority Sector Lending as on 31st March
2023.
Advances to SC/ST Communities
The outstanding advances to Scheduled Caste/ Scheduled Tribe (SC/ST)
communities went up to '17,519 crore as of 31st March 2023. The SC/ST communities
accounted for 17.73% share in total advances granted to weaker sections by the Bank.
Further, special thrust is given 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.
Gold Loan
Bank's gold loan portfolio increased to '38,518 crore as on 31st
March 2023 from '29,316 crore as on 31st march 2022, registering a growth of 31.38% on YOY
basis. Within gold loan portfolio, Agriculture gold loan grew by 30.47% contributing
'35,829 crore (excluding TWO) in FY 2023 from '27,459 crore in FY 2022. Retail gold loan
increased to '2,419 crore in FY 2023 from '1,371 crore in FY 2022, registered a growth of
76.44%. During the year, the Bank has added 303 new gold loan disbursing branches taking
total number of Gold Loan designated branches to 5,900 in FY 2023 from 5,601 branches in
FY 2022. The increase in spread of Gold loan designated branches across the country with
share of geographies other than southern parts stands at 27.11% in FY 2023 as compared to
25.18% in FY 2022. The number of Women beneficiaries of gold loan accounts increased to
10,09,856 in FY 2023 from 8,13,502 in FY'22, added 1,96,354 new such accounts during
the year. The contribution of Agri Gold Loan in total Agriculture advances increased to
28.49% in FY 2023 which was at 25.14% in FY 2022 and 22.30% in FY 2021. Average ticket
size of gold loan increased to '1.58 lakhs in FY 2023 from '1.46 lakhs FY 2022. Average
amount of gold loan per branch increased to '6.52 crore in FY 2023 from '5.23 crore in FY
2022. Credit quality of Gold Loan portfolio remained healthy with GNPA ratio of 0.22% as
on 31st March 2023.
During the financial year. Beside many changes in the product bank has
imparted training on appraisal of gold jewels/coins and certification to our own staff, in
orderto build confidence among the staff while appraising of gold ornaments done by
assayers.
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 branches and BC network. With the advent of technology,
innovative steps are being taken for serving the unbanked areas. Bank expanded its BC
network to 51,780 by engaging additional 12,442 BCs (including 8861 BCs of UPSRLM project)
as on March 31, 2023 to cater to rural, semi urban and urban areas across the country.
Bank took the following initiatives towards promoting financial inclusion:
• Online NPA Recovery portal for BCs was launched.
• Online Loan Lead portal for BCs was launched.
• Survey of Customers who transacted at BC point was conducted and
94% of Customers rated the services at BC point were satisfactory and above.
• Launched opening of NON BSBD Account at BC Point.
• Launched Android based BC Inspection App for monthly inspection
of BC points by officials of the Bank and BC Supervisors.
• As a risk mitigation measure voice over in Bilingual for every
transaction was introduced at BC points.
Performance highlights under financial inclusion during FY 2022-23:
• Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts increased by
31.21 lakh (5.63%) and PMJDY deposits increased by '4,920 crore (21.76%).
• The Bank's share in comparison with PSBs stood at 15.30%
for PMJDY accounts and 17.50% for deposits under PMJDY accounts.
• Zero balance PMJDY accounts of the Bank reduced to 5.22% as on
31st March 2023 as against 5.75% as on 31st March 2022.
• Cumulative enrolments under micro insurance during the financial
year increased by 77 lakh and reached to 3.90 crore as on 31st March 2023.
Performance of RRBs sponsored by Bank of Baroda
The Bank sponsors 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 increased to '1,48,737 crore as on 31st March 2023 from '1,33,080 crore as on
31st March 2022. These RRBs together posted a net profit of '719 crore during FY 2023,
increased by 15.49 % as compared with net profit of '594 crore during FY 2022. The net
worth of these RRBs put together improved to '5704 crore as of 31st March 2023 from the
level of '4,986 crore as of 31st March 2022.
Awards:
• Our sponsored RRBs put together bags 21 Top Performing Awards
(BGGB-9, BUPB-6, and BRKGB-6) under various campaigns conducted for enrolment of Atal
Pension Yojana by Pension Fund Regulatory and Development Authority (PFRDA).
• Baroda Gujarat Gramin Bank was Runner UP for Best Technology
Talent at 18th IBA Technology Conference, Expo and Awards.
• Baroda Gujarat Gramin Bank also conferred with the special prize
for Best Financial Inclusion RRB and IT Risk Management at 18th IBA Technology Conference,
Expo and Awards.
• Baroda Rajasthan Kshetriya Gramin Bank was recognized with
following five awards at IBA Annual Technology Awards:
1. Best Technology Bank of the Year (Consecutive 8th Year).
2. Best Digital Financial Inclusion Award (Consecutive 4th Year).
3. Best IT Risk Management.
4. Best Artificial Intelligence and Machine Learning.
5. Best Digital Engagement.
Further Runner Up in following two categories:
1. Technology Talent.
2. Fintech Collaboration.
• Baroda Rajasthan Kshetriya Gramin Bank also won award for
outstanding performance in AIF (Agri Infra Fund) Scheme and NRLM by Ministry of
Agriculture and NRLM.
Stressed Asset Management
The Bank believes that continuous day-to-day monitoring is the first
step towards reduction in non-performing loans and in 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 having 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), -12- Stressed Assets Recovery Branches (SARB Branch)
at zonal level were established to handle NPA accounts other than NCLT with outstanding
balance above '5 crore. These Branches are under direct supervision of corporate office to
reduce TAT Further -65- Regional Stressed Assets Recovery Branches (ROSARB Branch) at
Region level were established to handle NPA accounts with outstanding balance above '50
lacs to '5 crore.
Under Govt of India Digital Initiative, Bank has taken several steps
for end to end digitalization 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 proposals it reduced the TAT.
3. Bank is member of eBkray portal which is being used for auction of
properties under Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Act (SARFAESI) & banks success rate under SARFAESI is 52%.
Bank also adopted the following strategies for recoveries and reduce
slippages.
1. To have a proper monitoring of the portfolio of Agriculture, MSME
and Retail Loans we have taken a cluster / area approach with dedicated recovery officers.
2. Proper allocation of small NPA accounts to Recovery Agents /
Business Correspondents / Feet on Street to be done by Portfolio Managers at ZO/RO level
and properly monitoring them.
3. Arranging the National Lok-Adalats & Introducing the Pre
Lok-Adalat meetings for maximum participation of borrower during the Lok Adalats.
4. Bank has initiate the SARFAESI action in all eligible NPA accounts
and continue the action till conclusion / disposal of asset & recovery in the account.
We are also listing/ publishing the auction property details on Bank's website,
Newspaper, Radio, social media web portals and as well as leading property web sites.
The movement of NPAs during the last two years is as
under:
(Rs. in crore'
Particulars |
FY
2022 |
FY
2023 |
Gross NPA |
54059 |
36764 |
Gross NPA
(%) |
6.61% |
3.79% |
Net NPA |
13365 |
8384 |
Net NPA
(%) |
1.72% |
0.89% |
Additions
to NPAs |
14255 |
11150 |
Recovery/
Upgradations |
8448 |
10100 |
Write
offs including TWOs |
17967 |
17998 |
Recoveries
in write off accounts |
3578 |
4781 |
Provisional
Coverage Ratio (including TWO) (%) |
88.71% |
92.43% |
Provisional
Coverage Ratio (excluding TWO) (%) |
75.28% |
77.19% |
As per asset classification, the bifurcation of loan book is as given
below:
(Rs. in crore)
Asset
Category |
FY
2022 |
FY
2023 |
Standard
Advances |
764061 |
932784 |
Gross NPA |
54059 |
36764 |
Total
Gross Advances |
818120 |
969548 |
Gross
NPAs comprising |
Sub-standard |
5280 |
5439 |
Doubtful |
31512 |
19182 |
Loss |
17267 |
12143 |
Total
Gross NPA |
54059 |
36764 |
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 had
launched in FY 22-23 its special One-Time Settlement (OTS) scheme "Rin Mukti
Yojana" for settlement of NPAs in small value DB - II, DB - III, Loss, PWO & TWO
accounts and "Vasooli Sankalp" for settlement of NPA/TWO/ PWO accounts having
outstanding balance up to '1.00 Crs. The Bank recovered NPA accounts amounting to '596
crore (NPA accounts Balance reduced by the '1326 crore) under Rin Mukti Yojana and
recovered '1665 crore under Vasooli Sankalp scheme.
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 in coordination with Credit Monitoring Vertical to find out the
resolution and exploring all prospects of recovery, up gradation.
International Banking
The Bank has -93- overseas branches/offices across -17- countries
comprising of -40- 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 addition, Bank has a wholesale branch
in GIFT City (SEZ), Gujarat, India which is treated as an offshore banking unit and has
been 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.
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 portfolio by taking exposure on Non-India related syndication
loans in the primary and secondary market. Also, various new products have been launched
to broaden the product basket.
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 FY'22 Bank has closed its operations in
Hong Kong and South Africa while in FY 2023, Bank had closed one of its branches in UAE.
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 March 31, 2023, the Bank's total business (net) from
international branches was '3,20,722 crore and constituted 14.95% of the global business.
Total deposits were at '1,56,313 crore while net advances were '1,64,409 crore as on
31.03.2023.
Domestic 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 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 2023 stood at '3,52,875 crore. The share of SLR securities in total investments was
83.22%. The percentage of SLR securities (unencumbered) to Net Demand and Time Liabilities
(NDTL) as of 31st March, 2023 was at 23.89%. The Bank capitalized on the opportunities
offered by yield movements. The Bank managed its portfolio efficiently and maintained
yields on total investment for FY 2022-23 at 6.84% (including profit on sale). During FY
2023, the profit on sale of investment and foreign exchange earnings were '1,115 crore and
'124 crore respectively.
Government Business
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), CBIC,
ESIC, MHFW, GST, e-stamping and Sovereign Gold Bonds. These products have contributed
towards collection of fee income of '120.48 crore and also enhancing Bank's goodwill.
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. On
01.02.2023 the bank has integrated with newly launched e-Filing portal (CBDT TIN 2.0) .
All the branches of the bank are now authorized for collection of OTC CBDT challans.
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 launch campaigns to constantly motivate all the branches to
enhance business.
Appreciations from Government bodies during FY 2023;
• Awarded Certificate of Excellence for Winning Wednesday in
recognition of achievement of Targets & contribution towards Atal Pension Yojana.
• Awarded Makers of Excellence 5.0, Best Performing Executive
Director, Leadership Campaign 4.0, Award of Excellence & APY Annual Award from PFRDA.
• Qualified under Beat the Best & Be the Best campaign for APY
launched by PFRDA and awarded Exemplary Award of Par Excellence.
Wealth Management
Growth of Wealth Management business is linear to growth in economy and
burgeoning growth of India economy augurs well for Bank of Baroda with captive clientele
base of 160 million. Hence, Wealth is emerging as a key focused area for your Bank. The
efforts of your Bank are being recognized in the industry, and your Bank is now
internationally accredited & winner of ‘Global Private Banking Innovations Awards
2022' for Outstanding Wealth Management Offerings for affluent clients.
The Bank is constantly hiring skill resources from the market to cater
to the affluent segment (Radiance) whereas incumbent staff, having requisite regulatory
certificates and
knowledge of Wealth, is deployed at potential branches to reach out to
the customers.
Bank has also launched ‘Radiance Private' segment for the
super affluent clients and is on hiring spree to create robust team and value proposition.
The Bank is bracing up for delivering efficient and seamless services
to the customers by focusing on product, process and people. To smoothen the process of
distribution of investment and insurance products, your Bank is investing in robust
technology to reach out to customers, through digital mode giving them a delightful
experience. With this objective your Bank has on boarded new aged tech companies in FY
2023, to develop digital and customized journey, providing insurance and investment
solutions. These solutions will enable Bank to make efficient use of Al and analytic to
offer customized products to the customers.
The Bank believes that only skilled resource can cater to the
clients' requirement and hence the Bank has entered into some reputed training
providers institutions.
However, leveraging the vast network of branches Bank collected premium
of INR 1288 Crore under Life Insurance and joined the league of handful of Banks having
cross the milestone of '1000 crore premium through bancassurance channel. This performance
has enabled your Bank to register 31 % growth in Life insurance premium segment.
Similarly, collective premium from non-life insurance has grown 23 % from '490 Cr to '605
crore. MF AUM stands at INR 9740 Cr despite the market volatility.
On engagement front, with internal and external stakeholders, Bank is
reaching out to affluent clients with ‘Wealth Insight' monthly magazine
and customer engagement conclaves at major cities, keeping customers abreast of market
happenings and Bank's initiatives in Wealth space. Whereas for internal staff your
Bank is enhancing skill & knowledge of staff deployed in Wealth Business by arranging
Webinars, inviting market experts on regular basis.
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
bob World activation increased substantially during FY 2023 to 102.72
Lakh from 101.45 Lakh during FY 2022, thereby registering a growth of 1.2% during the
period. Financial transactions on bob World also increased to 1,864.7 lakh in FY 2023 from
1,483.94 lakh in FY 2022, grew by 25.66%
during the period. The Non-Financial transactions increased by 26.51%
to 27,745lakh in FY-2023 from 21,931.55 lakh in FY-2022.
Debit cards
The Bank has an active card base of 8.25 crore as on 31st
March'2023, an YoY increase of 11%.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 and
launched 26 campaigns during the period from Oct'22 to March'23 with various
popular merchants such as Xiaomi, Swiggy, Meesho, Myntra, EaseMyTrip, Yatra, JioMart,
Tata.
In FY 2022-23, Bank has launched "bob World Sapphire" (Male
& Female sub-variants) and "bob World Opulence" (Metal card) debit cards
which are exclusively curated for our premium and Super premium customers bundled with
value added features. During the year Bank has also launched "bob World Yoddha"
& "bob World Agniveer" debit card exclusively for Defence personnel and
"bob World Pudhumai penn" debit card for Girl Students in the state of Tamil
Nadu. Bank's Platinum debit card base has increased to 1.24 crore as on 31st March
2023 registering an increase of 83% over the previous year.
Baroda FASTag (National Electronic Toll Collection - NETC)
Bank has issued 1.71 lakh FASTag in FY 2023. Bank's FASTag is
available to BOB customers through bob World mobile app and customers as well as
non-customers can apply for FASTag through FASTag customer portal.
Bharat Bill Payment System (BBPS)
Bharat Bill Payment System (BBPS) is an interoperable platform for
repetitive bill payments which offers real time bill payment and recharge services to
customers. BBPS is an RBI initiative product and managed by NBBL (wholly owned subsidiary
of NPCI). Our Bank is authorized as Customer Operating Unit (COU) and Biller Operating
Unit (BOU) for facilitating BBPS services. In FY 2023, Bank has processed 3.29 crore bill
payment transactions amounting approx. '4,800 crore. Bank has also on-boarded Pimpri
Chinchwad Municipal Corporation (PCMC) biller under Municipal Tax category for
facilitating their bill collections through Bank's Biller Operating Unit (BOU).
ATM
Our Bank is having the wide network of 9,764 ATMs and 1,637 Cash
re-cyclers as on 31st March 2023 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.
Our Bank has launched the facility of Interoperable Card less Cash withdrawal (UPI ATM)
at 4725 locations where customer can withdraw money using UPI QR
services (ICCW) of Bank.
Bank is also in process of revamping/replacing the existing 6592 ATMs
sites and machine under OPEX Model. As of 31st March 2023, 4646 are made live under OPEX
model for seamless ATM services and enhanced customer's experience.
Internet Payment Gateway (IPG)
The Bank's IPG infrastructure bob World Merchant Gateway is an
online service that is being offered to customers to conduct their business online by
accepting payments securely in real time. The Internet Payment Gateway provides an
interface between merchants and their customers for secure payment processing using online
modes.
bob World Merchant Gateway facilitates receiving payment online from
debit/credit card, Net Banking, UPI, Wallet, AEPS, AADHAR PAY, QR code etc. And offline
modes i.e. NEFT/ RTGS in a simple and secured manner, which is essential for
e-Commerce/online business.
To provide a seamless and customizable service, Bank has tied up with
13 aggregators and 3 master merchants. Bank achieved a growth of 16% in IPG merchant
on-boarding in FY 2023.
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 2023, an increase of 46% merchant on-boarding for UPI QR in
comparison to FY 2022. There is tremendous growth in UPI QR transactions from 2.34 Crores
to 6.63 Crores.
bob World (Internet Banking):
During FY 2023, 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 99.71 lakh during FY 2023 from 88.09 Lakh during FY 2022.
Baroda TabIT:
The Bank embarked upon digitizing its customer on boarding process
through tablet for instant CASA opening along with bundle of services (Personalized Cheque
Book, Personalized Debit Card, Mobile Banking with MPIN, SMS Alert, Internet Banking) and
POS, UPI QR, IPG lead generation through its TAB banking platform - bob World Tab. Bank
opened more than 63 lakh savings account and 2.3 Lakh Current accounts through this
platform during the FY 2023.
Credit Card Issuance and Self-help Group account opening has been
initiated through bob World Tab. Feedback functionality has implemented in bob World Tab
Platform for capturing customer experience.
Company Account ( Public / Pvt ) Opening has started through bob World
Tab and total 1413 account are opened
so far through bob World Tab ( Launch on 22 Nov 2022)
The bob World TAB on-boarding platform is now extended for Existing
Customer with new 17 Services to Digital Banking Units. These Services are;
Customer Complaint Registration - Tracking of Complaint &
Suggestion/Registration (Redirections)
Online FD account opening for ETB customers
Online RD account opening for ETB customers
Blocking, of Debit Card service
Email ID Updation service
Online PAN Number Updation
Account Statement Service
Cheque Book Request -ETB
Nomination Update - ETB
Lead Generation ( HL/PL/AL/EL) - Redirections - ( Self Services)
Mobile Banking Registration service for ETB customers through TAB:
Internet Banking Registration service for ETB Retail customers through
TAB
APY Opening through TAB PMJJY - PMSBY Micro Insurance
Self-Services - Jansamarath Portal , Internet Banking , bob Wolrd
Kishan , B-3 Accounts
Lead Generation for Assets products ( Redirections)
Personnel Loan & Auto Loan ( Assisted Mode - Redirections)
Fun7ctionality |
FY 2022 |
FY 2023 |
Growth
YOY % |
Saving
Bank Account |
5046885 |
6301204 |
24.85 |
Current
Account |
147908 |
230046 |
55.53 |
SHG A/c |
11221 |
50077 |
11.50 |
Credit
Card Application |
190960 |
1196735 |
56.00 |
UPI
Merchant On boarding |
199772 |
520424 |
160.51 |
Company
account |
0 |
1413 |
|
WhatsApp Banking:
• WhatsApp Banking User registration -
Year |
Number
of Users registered on WhatsApp Banking (in lacs) |
FY 2021 |
6.16 |
FY 2022 |
14.04 |
FY 2023 |
40.48 |
Total
registration |
60.68 |
• WhatsApp Banking Transactions -
Year |
Number
of WhatsApp Banking Transactions (in lacs) |
FY 2021 |
47.8 |
FY 2022 |
207.5 |
FY 2023 |
343.4 |
Digital Banking Units:
In the Budget -2022, Government of India announced to set up 75 Digital
Banking Units across 75 districts with an aim to take digital banking to every citizen.
Our Bank had been identified as core committee member by IBA for
setting up of Digital Banking Units. IBA conducted various meeting with Public sector
Banks and private sector Bank for finalizing the setup of Digital Banking Units. Our Bank
has set up Digital Banking Unit in 8 districts (Vadodara, Silvassa, Kanpur Dehat,
Varanasi, Karauli, Kota, Indore and Leh). As of 31.03.2023, bank has operationalised 12
DBUs.
Digital Lending
In these times, the paradigm shift in technological advancements has
reshaped the global era of digitization. Almost every industry is trying to drive the
change through digitization and the banking industry is on the frontline of exploration
and innovation.
The financial services industry is undergoing rapid and far-reaching
transformation, underpinned by emerging technologies and socio-economic drivers. This
transformation is fundamentally changing market structures and opening opportunities for
both incumbents & challengers to create innovative, game-changing alternative products
& services.
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.
Atthe core of this digital lending platform, fintech are playing a
pivotal role in revolutionizing credit ecosystem by creating alternative lending channels
that offer significant advantages to both Bank and borrowers.
Initiatives of Digital Lending to improve Bank's business
portfolios;
Retail Initiatives:
• Bank has launched Digital Auto Loan journey with customer
self-service journey, Bank Officer assisted journey and Dealer assisted customer journey.
• Bank has launched Pre-approved Auto Loan for ETB
customers that enables an existing customer to get auto loan digitally
for purchase of a vehicle without any separate income assessment process. This will result
in significant reduction in TAT.
• Bank has launched Digital Education Loan journey for
pre-approved institutes & non-preapproved institutes. Journey is made ready for
Educational Development Program.
• Branch Officer Assisted Journey for Personal Loan
to facilitate the branches to carry out / support the Digital Personal
Loan process for customers at different stages of the journey.
• Expanded gamut of pre-approved loans with launch of Pre-approved
Home Loan Top-up for Bank's existing home loan customers.
• Bank has launched Digital Pensioner Loan for Bank's
existing pension customers.
MSME Initiatives:
• Bank has enhanced limit from Rs.25 lakhs to Rs.1 crore for Digital
Renewal of MSME loans. With enhancement in limit, additional 80,000 accounts can be
renewed digitally.
Agri Initiatives:
• Bank has launched Digital Journey for Gold Loan to
provide enhanced banking experience to the customers.
• bob World Kisan platform has been revamped to align with
bob World branding. The platform is revamped in order to enhance customer experience and
to increase the traffic on the platform by offering new functionalities like lending,
insurance, integrated marketplace and new advisory services.
• Bank has launched digital process for renewal of BKCC loans.
• Bank has launched digital journey for BKCC upto inprinciple
journey
Analytics Cyentre of Excellence (ACoE)
The Bank continues to accelerate in data driven banking. Self-service
analytical capabilities are rolled out to all business units and branches. The digital
banking initiatives are being augmented with advanced analytics and real time use cases.
The Bank is going beyond cross sell, up-sell, early warning signal, etc. use cases to
advanced ALM, Risk and AML/ Fraud management with advanced machine Learning
techniques. The focus of the bank is to drive personalization
while establishing a strong risk management framework on
the back of data and analytics.
Information Technology
• Bank has successfully implemented Account aggregator (AA)
ecosystem as an alternative mechanism to provide the bank statement and related details
through the ecosystem with customer's consent.
• Bank has revamped the UPI platform to handle better transaction
processing capability to cater the multi fold increase in transaction volume.
• Bank has implemented Card on file tokenization (CoFT) and Token
Life Cycle Management for RuPay & MasterCard variants.
• Bank has set up Digital Banking Units for delivering digital
banking products & services as well as servicing existing financial products &
services digitally.
• Bank has introduced various enhancements in VCIP (Video based
Customer Identification Process/Video KYC) process viz. life certificate, language based
call assigning, digital education loan etc. along with new centers.
• Bank has implemented new portal for facilitating release of
funds under Centrally Sponsored Schemes (CSS) of Govt. of India.
• Kisan Portal revamping done to make the portal more customer
friendly and to extend the service to non-bank customers.
• Bank has rolled out pilot Central Bank Digital Currency (CBDC)
referred to as e' (Digital Rupee) is a digital form of currency notes issued by the RBI.
Digital Rupee is to provide an alternate to cash which is secure, fast (instant
settlement) and cost-effective payment system for both individuals and businesses.
• Bank has added new services in Mobile Banking application
"bob World" for the customers including Persona based theme for Senior Citizens,
NPS subscription through bob World, Insta-Demat Account Opening, Common QR scanner for UPI
& Bharat QR, Wearable (bob World Wave) issuance and management, Chatbot, Allowing
PC/FB accounts access, Account statement/lnterest & TDS certificates in Hindi, Smart
search, Credit Card integration, Sovereign Gold Bond issuance, eKVP account opening etc.
bob World contains 200+ services for 360? banking needs of the customers.
• Bank has added new services in Internet Banking Platform to
enhance customer experience viz. ePA PFMS online payments, Integration with TIN 2.0 for
Tax payments, Multiple integrations with state treasuries for Tax payments, Enabling bulk
NEFT/ RTGS upload feature for corporate Users, NPS registration & contribution etc.
• Bank has augmented the infrastructure to sustain load of all
applications based on the present volumes, future projections.
• Bank has automated many internal banking processes to improve
the efficiency.
• Bank has enhanced CRM capabilities by integrating Lead
management module for Retail Asset products, Retail, MSME, AGRI, Credit Card & Wealth
products.
• Bank has upgraded AML in international territories (IFSC BU,
Uganda, Botswana, Oman, Australia, Seychelles, Fiji & UK Wholesale).
Cyber Security
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 which is aligned with business strategies of Bank for comprehensive
IT risk management. To provide cyberresilience & for managing enterprise risk, Bank
continuously implements adaptive security controls to mitigate risks, thereby minimizing
cyber-attack surface. The Bank follows both NIST (National Institute of Science and
Technology, USA) Cyber Security Framework and RBI Cyber Security Framework.
Cyber Security is being monitored and managed on 24X7X365 basis by
Cyber Security Operation Center (CSOC) for monitoring active threats in Bank's
environment. The Global CSOC is tightly coupled with all the verticals of the bank at
domestic and international territories. It is equipped with state-of-art cyber security
solutions for threat modelling, detecting, analyzing and mitigation of cyber-threats.
Bank's Data Centre and Data Recovery Centre are ISO 27001:2013 certified.
In addition to the existing checks and controls, Bank undertook the
following measures to enhance cyber security:
• 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.
• Customer Awareness includes Cyber Security awareness messages
via SMS & E-mail, social media platforms, websites, ATM's for educating customers
about cyber security.
• 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.
• Anti-Phishing & Brand Monitoring Services
Marketing
The Bank continued to have its impactful presence across the media
spectrum reaching out to its customers through electronic, radio, OOH, digital, and
events. During the year, Bank continued to further thrust on its flagship digital sub
brand ‘bob World' by highlighting additional new features and other products
campaigns such as Home Loan, Car Loan, MSME loans, Online SB Account Opening etc. Bank
celebrated ‘Azadi Ka Amrit Mahotsav' during anchor months (July 2022 and January
2023) on Pan India basis with special focus on SLBC states (Gujarat, UP and Rajasthan).
Using an innovative approach, Bank launched 115 hours of RJ Marathon to
commemorate Bank's 115th Foundation Day giving insights into the rich history,
legacy, products, and remarkable achievements over the years. On the same lines, Bank
associated with reputed and vibrant platforms like Rashtra Sarvopari Sammelan, India
Economic Summit and Sahitya Aaj Tak which promotes freewheeling conversations around
India's Culture, Economy, Politics, Literature, etc
Bank has a history of associating with ace athletes and sportspersons
making them brand endorsers and play a crucial part in their sporting career. The Bank
continuously supports the youth of the country through its various banking and non-banking
initiatives. This association reflects the Bank's ethos of adding value to its
customer experience by choosing to associate in various Sports. In order to reach these
Millenials and sports loving youth; Bank initiated television campaigns during All England
Open Badminton Championships, 2023 and FIH Hockey World Cup at Odisha and also run a
special TV campaign on occasion of National Sports Day.
Bank of Baroda has always been a strong supporter and enabler of women
empowerment through its various products and services. In addition, Bank has always been a
strong Launchpad for women in sports like in the case of Ms P V Sindhu who is a renowned
sports icon and is associated as Bank's Brand endorser. In order to further deepen
the association with our new Brand endorser Ms. Shafali Verma, Bank released TV Media
campaigns during T20 Women's Asia Cup 2022, U19 Women's T20 World Cup and Maiden
Women's IPL 2023.
Bank of Baroda's Sun Run 2.0 took place on January 29, 2023 at Jio
World Garden in Mumbai. Ms. PV Sindhu, India's badminton superstar and Bank of
Baroda's brand endorser along with the top management from Bank of Baroda including
Shri Ajay K Khurana, Executive Director, Shri Debadatta Chand, Executive Director and Shri
Lalit Tyagi, Executive Director flagged off the event. Over 3500 people participated in
the event, resulting in an electrifying and fun atmosphere. Sun Run 2.0 which featured two
race categories - a 10 km timed BOB Pro Run and a 5 km non-timed BOB Fun Run was aimed at
promoting fitness amongst Corporate employees thereby building a much stronger and greener
environment.
Bank of Baroda associated with ultra-marathoner and Founder Director of
Team Fab Foundation, Shri Kumar Ajwani for the BOB Golden Quadrilateral Run, covering
5,933 kilometers in ~100 days. The run was recognized by Guinness World Records for the
fastest time to travel the Indian Golden Quadrilateral on foot (Male) and also been
recognized by World Books of Records, London. On social media platforms, Bank of Baroda
extensively promoted the #GoldenQuadrilateralRun of Mr. Kumar Ajwani, supporting the
rehabilitation of Indian soldiers, who have been wounded in battle while defending our
country as well as helping tribal schools.
As part of Bank Green initiative ‘#BOBGreenRideWithMilind 2.0, Ek
Pehal Swachh Hawa Ki Aur,' was extensively promoted on social media which was
partnered with the environment advocate and fitness enthusiast, Milind Soman. Under this
initiative, Milind embarked an 8-day sustainable journey on a bicycle and an electric
scooter covering about 1,400 km from Mumbai to Mangalore. Various social media posts and
videos were published promoting eco-friendly transportation, a green lifestyle as well as
the importance of health & fitness.
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. To promote literature
Bank has initiated ‘Bank of Baroda Rajbhasha Samman' awards for translation of
Novels in Indian languages.
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, MSME, Mudra Loans etc. A total of 100+ Campaigns were executed for
awareness as well as business conversions for various products & services such as
Home, Car, Personal & MSME loans. More than 10 lakhs leads were generated through
Digital paid Marketing activities with approx. sanction of '170002.
The Bank's social media family achieved a remarkable milestone in
the FY 2022-23 by gaining over 2 million followers across various social media platforms,
with the continued and aggressive social media strategy. As a result, the Bank has
achieved the milestone of a total of 5 million+ followers. A significant contribution in
the growth has been through the #IAmSocial campaign, wherein almost 80% of the Barodians
came together and participated with full enthusiasm building an organic fan base for Bank.
Further Bank continued its aggressive social media strategy, promoting
its products and services, throughout the year, strengthening its digital presence. The
Bank achieved a milestone of 5 million followers across platforms by end of
July 2023.
Bank has been doing multiple social media campaigns to empower women
and promote gender equality. In continuation of its efforts, the third edition of digital
IP #SmashItWithSindhu wherein the Bank provided a platform to bring forward the women who
have done commendable work to promote gender equality and meet PV Sindhu and Shafali
Verma.
Throughout the year, the Bank's social media strategy effectively
showcased the numerous features and offerings of bobWorld. In particular, promotional
efforts were intensified during the festive season.
The details of Bank's social media presence are as below:
Social
Media Channels |
Statistics
(No of likes/Followers) as on March 31 2023 |
Facebook
likes |
2.96
million + |
Twitter
followers |
9.29
million + |
YouTube
Subscribers |
5.22
million + |
LinkedIn
followers |
2.57
million + |
Instagram
followers |
4.43
million + |
Quora
Views (started on 1st
Jan 20221 |
381,412 + |
In Website operations, with the go live of Bank of Baroda UK Ltd
website, Bank has crossed another MILESTONE in website centralization exercise. With this
the bank has successfully revamped and centralized all its 19 websites including domestic
corporate website, international territories/subsidiary websites and the bob World website
under the centralization project. In FY 2022-23 total session in website is 71.65 million
and total 34.71 million users visited the website, Out of total session 67.44% traffic is
coming from Organic Sources.
The website enhanced features and functionalities now
include:
• Robust search functionality with improved voice search
• Official blog, Lead Management System (LMS) and sophisticated
calculators
• Multilingual capabilities Advanced filters
• WCAG 2.0, GDPR compliance, cooks management capabilities
• Accelerating Digital Growth
• Regularized Search Engine
• Optimization (SEO) for all websites Set-up of analytics for data
gathering, analysis and action Supporting digital marketing ecosystem with tracking and
conversions
• Improving the page load speed time by implementing the best SEO
practices
Bank Secured top position in EASE 5.0 for two Search Engine
Optimization Performance related parameter, Domain Authority and Keywords
Ranking. Organic session in Banking Mantra section grew by %417 on Y-o-Y As per Google
search console data in FY 2023 Bank of Baroda website pages had total impression of 511
million out of which the total no of clicks was 53.8 million. Performance of product pages
saw a healthy growth as listed in table below"
Product |
Y-o-Y
Growth |
Personal
Loan |
150% |
Savings
Account |
58% |
Home Loan |
40% |
Gold Loan |
342% |
Total 3,95,899 Leads collected for various products through bank's
corporate website channel during FY 2022-23. Top 5 products for highest leads collected
during FY 2023, Mudra Loan (74,073), Salary Package for the Brave Beginners- Agniveers
(58,217), Baroda Home Loan Takeover Scheme (37,245), Pradhan Mantri Jan Dhan Yojana
(36,957) and Mortgage Loan (17,406). The details of the various Social Media Awards
received by the Bank during FY 2023 have been given in award section of the report.
From a Public Relations perspective, the aim was to build the Bank of
Baroda brand, highlighting the Bank's financial performance as well as communicating
other key announcements across digital banking, business initiatives, product launches,
interest rate offers, partnerships, marketing campaigns, award wins etc. In FY2023,
increased the Bank's visibility and positioned Bank of Baroda as the #2 Public Sector
Bank and amongst the top banks in the country.
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
The Bank launched ‘Our Code of Ethics' on 21st May 2022,
which has been a milestone in the journey of ethics which the Bank embarked upon by
setting up a dedicated Corporate Ethics department and an Apex Level Ethics Committee in
2021. The launch of the Code of Ethics was undertaken at an event where the senior
leadership of the Bank was assembled, in the presence of the Managing Director and
Executive Directors of the Bank. The department works on the Ethics Agenda of the Bank
primarily comprising of developing and implementing the Code of Ethics, conducting round
the year education and awareness programmes and devising metrics for measurement of
Ethics.
The Code of Ethics is 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 of Ethics has been benchmarked with peer organizations from around
the world and has been structured on a stakeholders-centric 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 Code addresses contemporary challenges that the Bank and its employees face, and
outlines the responsibilities they carry when addressing emerging critical issues in areas
like cybersecurity and climate change.
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. The Code gives us the strength to do what is "RIGHT" and will help to
enhance our Bank's brand and reputation. The Bank's leaders have been supporting
the cascade of the Code through multiple employee engagement events.
One of the most powerful strategies for ensuring the success of our
ethics agenda is developing effective channels of communication and towards this
endeavour, ‘Speak Up!' initiative in line with the Code of Ethics was organized
which highlights the channels available in the Bank to raise complaints and issues against
unethical practices. Further, a quarterly in-house journal - ‘Baroda Sanskriti'
- was launched with creative contributions from the employees. Regular Snippets from the
Code of Ethics, quizzes, competitions, bilingual Audiobook on COE and other digital
communications like the initiative- ‘Naitik Series' -videos on ethical dilemmas
from the Ethics Department also ensure better awareness of ethics. The Department also
carried out a campaign of taking the Ethics Pledge in HR Connect by all employees and
achieved an overall completion of 97%, for the Bank as a whole.
Webinars, dedicated training programmes and mandatory e-learning course
on Ethics being conducted for all staff members 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. The Bank ensured that
frequently used functionalities by customers were made available through digital channels
and the contact centre. The 24*7 contact centre has the capability to connect with
customers in their preferred languages. Apart from Hindi and English, the language
capability was increased to nine regional languages.
The highlight of Contact Centre:
1. The contact centre handled more than 1.5 lakh average inbound
customer calls per day during the year and over 1.00 lakh calls daily responded to through
IVR.
2. Average more than 1.00 lakh outbound calls per day for sales and
surveys.
3. Contact Centre provided emergency services to 6 overseas territories
i.e. Botswana, Mauritius, Uganda, Oman, Fiji & Seychelles.
4. 24*7 FRMS alerts by Contact Centre.
5. L2 helpdesk at Contact Centre for exclusively bob World internet and
bob World mobile banking related complaints.
6. Contact Centre is providing 15 IVR services and 16 services through
agents 24*7.
7. First in industry contact centre started live Video call and live
web chat facility for customers.
8. Now contact centre is equipped with many Al-based technologies like
Speech Analytics, Social Media Tools, Automated Email Tool, Genie training Tool, AURA call
quality Tool, Power Bl smart dashboard and many more technologies.
During FY 2023, the Bank saw significant improvement in the usage of
remote channels for managing grievances. Approximately 93% 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. 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 for the
grievance redressal of customers before they approach the RBI Ombudsman. All complaints,
which are rejected or partially accepted by the Bank, are systematically escalated to the
Internal Ombudsman for review. This enhances customer confidence in the Bank's
systems and expedites the process of grievance redressal, thus making it even more
transparent.
The Bank's code of commitment to customers and MSMEs, citizen
charter, grievance redressal policy, and RBI Integrated 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 the Board
for Customer Services addresses the issues relating to the formulation of policies
and assessment of compliance with the same with the aim of consistent
improvement in the quality of customer service.
Bank's ChatBot "ADI" is already functional on its
website. ADI assists customers in navigating through various pages of the website while
providing an interactive experience to the customers. A few features of "ADI"
are an instant response to our customers' queries, convenience to chat, available
24*7, digital assistance, and a seamless chatting experience. Bank has also tied up with
True Caller 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 fraud.
The Bank has also changed its toll-free number. It is now an 8-digit
number instead of the earlier 11-digit number. This was done after it had come to notice
that fraudsters obtain a number similar to Bank's toll-free number and try to dupe
customers posing as Bank officials. This has been done with a view to safeguard our
customers from vishing.
Handling Customer Complaints
Customers can very easily lodge their complaints directly with the Bank
by visiting its website of the Bank and clicking the appropriate link. Alternatively, the
customers may also call the toll-free number and get their complaints lodged in the CRM
portal of the Bank. Customers also have the option of sending their complaints to Branches
and other offices via any mode. All the complaints will be entered into the CRM portal.
The complaints are automatically addressed to the concerned resolver based on the category
of complaint selected at the time of lodging the complaint.
Bank also has an Internal Ombudsman mechanism in place, as per
regulatory guidelines, to instil confidence in the customers regarding the resolution of
their complaints.
Bank has also implemented an Online Dispute Redressal (ODR) mechanism
for the speedy resolution of online transaction relate complaints. Also, the blocking of
Baroda Connect facility has been extended via Interactive Voice Response System (IVR) in
the contact centre.
To monitor the quality of resolution being given to the customers, Bank
subjects 100% of Non - ADC complaints and 5-10% of ADC complaints to quality check. The
outcome of the quality check is shared with the concerned resolver group. To make the
process of quality check more efficient and less laborious, the Bank, in collaboration
with IIT - Bombay has developed an AI Tool, which will assess the quality of redressal,
thus reducing the time and manpower required.
Branch Network
As of March 31, 2023, the branch network of the bank is as
under:
|
FY 2022 |
FY 2023 |
Domestic
Branches |
Number of
Branches |
%
Share in Total |
Number
of
Branches |
% Share
in Total |
Metro |
1,766 |
21.62 |
1,787 |
21.79 |
Urban |
1,475 |
18.06 |
1,471 |
17.94 |
Semi
Urban |
2,083 |
25.50 |
2,075 |
25.31 |
Rural |
2,844 |
34.82 |
2,867 |
34.96 |
Total |
8,168 |
100.00 |
8,200 |
100.00 |
Overseas
Branches/ Offices (including branches of overseas subsidiaries) |
94 |
|
93 |
|
The Bank opened new 73 domestic branches and merged 41 branches with
existing branches during FY 2023.
Currency Chests
The number of currency chests stood at 137 as on 31st March 2023. 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, measurement, 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 defense", each of the three
lines has an important role to play. These are:
i. First line of defense - 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 defense - This comprises of 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
defense.
iii. Third line of defense - 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 specialist Risk advisor on Board. 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 Bank's 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 and making them
updated on various risk appetite limits.
Climate Risk
The Bank understands that environmental sustainability is critical for
the long-term growth of our business, and accordingly has started working in specific
domains of Energy efficiency, Waste reduction, Biodiversity, Water
conservation, Green infrastructure, Sustainable agriculture etc. By
prioritizing sustainability in these areas, we can create a path to sustainable
development that benefits both, economy and the environment. It is also important to
promote understanding and awareness on emerging threats and educate stakeholders -
customers & vendors alike, on good practices to achieve long-term environmental
sustainability.
With sustainable finance in focus, changing investment patterns have
started altering financial markets configuration and scope which will significantly
contribute towards this noble cause. As we understand, multi-stakeholder approaches are
necessary for this complex global challenge. The Bank is actively looking into catalysing
finance and investments towards decarbonisation, positive social impact and improved
governance with an emphasis on design and delivery of sustainable finance strategy. The
Bank is preparing an approach for products and practices towards augmenting mitigation,
adaptation and resilience for climate risk related challenges.
Bank has also developed an Approach Paper for management of risk
arising due to Climate Risk & Sustainability which covers, inter-alia, Governance
Structure; Strategy to address climate change risks and Risk management structure to
effectively manage them from a micro-prudential perspective.
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 by adding three MSME score card models to bring in
efficiency and strong data management system. The internal ratings are validated by
independent rating validating authority.
The Bank has put in place prudential caps across industries, sectors
and borrowers with an objective to build a resilient portfolio and de-risk from portfolio
concentration. The Bank has developed in-house models for risk assessment of various
Countries, State Governments, Group Borrowers etc. and setting exposure caps. As a part of
enhanced exposure monitoring, quarterly reviews are carried out for the Bank's key
exposures, segments, industries and sectors. A dedicated team tracks internal &
external developments to assess impact on the portfolio performance and recommend
pro-active remedial actions. The Bank also conducts comprehensive Thematic review
comprising sector outlook & other event-specific impact studies.
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
defined policies to 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 modified duration, PV01 and Value
at Risk (VaR) on a daily basis. The foreign exchange risk is measured and monitored in
terms of Net Overnight Open Position limits (NOOPL), VaR limits, 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. MidOffice also 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 organization. ORMF comprises the organizational 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 endeavor
to use the best of technology, we have procured a web based Operational Risk Management
System 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.
Efforts are made for inculcation of risk culture, values, beliefs,
knowledge, attitudes and understanding about risk among the staff. In order to ensure
this, Campaigns are carried out to create awareness in the staff by the means of emails,
workshops, webinars, meetings, fliers, magazines, E-Learning modules etc.
Business Continuity Plan
Bank has a detailed and effective Business Continuity Management (BCM)
framework in place for ensuring continuity of operations and rendering customer service at
the Branches and Offices during disruptions. The framework is in line with the guidelines
issued by RBI and global best practices. The Bank continuously works towards strengthening
the business continuity preparedness. Bank is also in process of obtaining ISO 22301:2019
certification.
The Bank has ISO 27001:2013 certified Data Centre and Disaster Recovery
site. Bank's Disaster Recovery 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, Anti 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 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 has 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.
Amongst several activities, the domestic compliance function conducts
on-site compliance test checks on more than 93 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% branches are
randomly selected on a quarterly basis. Bank also conducts onsite compliance test check of
various functions on half yearly basis. Off-site compliance test check of around 52
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. The above activities helps in maintaining a robust compliance
posture of the Bank.
An annual group wide compliance plan is prepared and regular monitoring
is carried out for ensuring adherence to the plan. Bank also undertake Compliance Risk
Assessment (CRA) of the Bank annually by sourcing the parameters from RBI's
Tranche-III data template, Onsite/Offsite/Vertical Test check reports etc. and derive CRA
score. Bank also uses CRA matrix to prepare Risk Oriented Activity Plan for timely
compliance of non-complied Regulatory parameters.
Bank has also taken various new initiatives such as creation of Data
Analytics Cell (DAC) for data dump analysis in order to identify the gaps in the system
and processes and to take corrective action. Product analysis is carried out to ensure
that the new / existing product is working as per the expectation and fulfilling all
Regulatory guidelines. Similarly, Circular vetting is done to ensure that the guidelines
issued by the vertical is commensurating with the RBI / Statutory guidelines. Moreover,
some Important Regulatory and/ or Statutory guidelines had been identified, being of prime
importance, since any breach in these guidelines may invite adverse
observation of the Regulator. These guidelines are termed as Key Compliance Indicators
(KCI) and monitored at periodic interval to take corrective action immediately incase of
breach/deviation. These activities shall help the Bank in further strengthening the
compliance posture of the Bank
Bank has also developed a portal to collect the data from field
functionaries on penalties, displeasure letters, warning letters, etc. on real time basis.
It enables the Bank to monitor the data centrally and to take corrective action
immediately.
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 is encouraging 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.
There were no significant incidents reported during FY 2023 relating to
compliance failure other than breach of RBI guidelines on Small Account and failure to pay
the interest rates in certain term deposit accounts as per the schedule of interest rates.
KYC/ AML Compliance
The Bank has a well-defined KYC-AML-CFT policy. On the basis of this
policy, KYC norms, AML standards and CFT Measures and obligations of the bank under
Prevention of Money Laundering Act (PMLA) 2002, are implemented. The Bank electronically
files Cash Transaction Reports (CTRs), Counterfeit Currency Reports (CCRs), Non-profit
organizations Transaction Reports (NTRs) and cross border wire transfer (EFT) reports to
Financial Intelligence Unit- India (FIU-IND), New Delhi on its portal every month within
prescribed timelines.
The Bank has an established Central Transaction Monitoring Unit (CTMU)
and put in place 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' is done on a half yearly basis. For
carrying out Re-KYC of eligible customers, the Bank has developed an automated process for
identification and generation of notices/ sending SMS/email to notify them for submission
of requisite KYC documents.
The Bank implemented Central KYC (CKYC) process for registration of
newly on-boarded customers' KYC information on Central KYC Registry. CKYC number was
allotted to 649.15 lakh customers as of March 31,2023.
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 headed by General
Manager / Chief General Manager administers various types of Audits i.e. Internal Audit,
IS Audit, Credit Audit, Concurrent Audit & Management Audit. Internal Audit function
in the Bank is an independent activity and has sufficient standing and authority within
the Bank. The Internal Audit Department, works under the guidance and supervision of the
Audit Committee of the Board. Bank's Internal Audit Function works in close
co-ordination with other Assurance functions i.e Risk Management Department &
Compliance Department.
Bank's Central internal Audit Division operates through -18- Zonal
Internal Audit Divisions to carry out internal Audit of Branches / offices as per the
periodicity decided by RBIA Policy. All Branches, Centralized Units, Administrative
Offices are covered under Risk Based Internal Audit. The summarized risk perception of all
8199 Branches & Specialized Integrated Treasury Branch as on 31st March 2023 are as
under:
• Low Risk Branch - 7003 Branches (85.41 %)
• Medium Risk Branch - 937 Branches (11.42 %)
• High Risk Branch - 187 Branches (2.28 %)
• -72- Branches with no Rating (New Branches)
• Specialized Integrated Treasury Branch was in Low Risk.
Total -1285- Branches and other units are covered under Concurrent
Audit covering Bank's 52.26 % Deposit, 78.05 % Advances & overall 62.92 %
Business coverage. All Category B Branches, Currency Chests & Centralized Processing
Cells are covered under Concurrent Audit.
Credit Audit is carried out of all Fresh Sanctions/ Existing Accounts
including Retail Loans and Restructured Accounts with aggregate exposure of '10.00 Crores
and above (FB + NFB) and 5% of borrower accounts are randomly selected from fresh Accounts
and Reviewed with increase having aggregate exposure of '1.00 Crore above but below '10.00
Crores (FB + NFB).
All Bank's branches are subjected to Information System audits
("IS Audits") to assess the IT-related risks as part of the RBIA of the
Branches. IS Audit of Data Center & IT Applications are also carried out periodically
by a team of CISA /DISA qualified IS Auditors and external CERT-in Firms.
Few Key initiatives include the following:
• Revised framework of Concurrent Audit is implemented and Daily
& weekly Report is introduced apart from existing Monthly Reporting.
• Audit Automation Software is implemented for Audit, tracking of
Compliance & Dashboard.
• Centralized Exceptional Monitoring unit is established for
ongoing monitoring of exceptions as per system data based on pre-defined logic under -66-
parameters.
• Data Analytics team is established for offsite surveillance and
data analysis as per different scenarios.
• -21- Point Roadmap is implemented during F.Y 2022
23 with objective to further strengthen Internal Audit, improve
compliance culture and reduction in Persisting irregularities & Repeat Audit
observations and ultimately achieve sustained compliance. Thrust is given on spot
rectification during course of audit itself and total -371- Branches submitted spot CRC
during F.Y 2022-23.
External Review of Internal Audit Framework is carried out by External
Firm during the Year and as per their assessment Internal Audit Framework in Bank is
robust and one of the best in peer Banks.
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 maintain asset quality, ensure Compliance of sanction terms and
end use of funds. It has to ensure that the credit assets remain in regular category,
endeavour made for upgrading asset quality of identified stressed accounts and take
corrective action to prevent slippage of the accounts. 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 system 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 RFA/fraud in accounts (if any). This
solution also enables the branches to closely monitor the 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 '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: 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/Book Debt statement,
review pendency, insufficient/ no credit in CC accounts, inadequate margins in LABOD/ODBOD
accounts etc. These triggers focused on 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 Audit: Credit Audit 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 as per sanction terms. This facilitates prompt corrective action, wherever
required, without waiting for the regular Audit/ Inspection, which usually takes place
with a time lag. Credit Audit is integrated with the core system Finacle to monitor it on
realtime 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:
• Bank has appointed Agency for Special Monitoring (ASMs) for
specialized monitoring in accounts of '250 crore & above for verification of
transaction monitoring, inspections etc.
• The Bank has also digitized 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 analyzer for analyzing, tracking &
monitoring the borrower's accounts periodically.
• Digital monitoring reports at pre-determined period are
regularly evaluated & taken up for corrective measures wherever required in respect of
big accounts of '1 crore & above.
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.
Vigilance setup at Zonal level conducts preventive audit of all
branches at regular intervals and to act proactively on information controls the damage at
bare minimum level.
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 programs 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 willful 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. Loan Document Manual has been revisited and simplified the documents.
Additionally, in the existing Advocate Portal, second phase with regard
to assignment of work and reviewing advocates' performance are made available. In
order to facilitate the faster process for vetting of loan and mortgage documents by Law
Officers, the Department has recently launched on pilot basis an online vetting portal for
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.
Further, the Department has been promoting environment of knowledge
sharing by issuing ‘Circulars', ‘Legal News Flash',etc. regarding ever
changing set of laws, latest amendments and interpretation of laws by Courts affecting the
Banking sector. In association with APEX Academy and a reputed Law Firm, initiated
Training program for Law Officers to groom them in specific legal fields as well as to
make them conversant with ever changing enactments, rules and regulations. Recently, we
had also organized ‘Symposium' on the topic "Digital Journey in
Banking-Legal and Business Challenges" with the aim to provide a platform for
dialogue and discussion amongst banking and legal experts on the spectrum of changing laws
and their materiality in the current market framework.
Apart from above we also succeeded in settling 211 Consumer cases
pending at the various Consumer Forums under National Lok Adalat and ‘Grahak
Madhystata Samadhan' organized by the National Legal Services Authority (NALSA). We
are continuing our efforts to settle more number of consumer cases by sensitizing legal
team at Regional/Zonal Office level.
Human Resources
Bank believes that our human resources are the biggest differentiator
having a direct and significant impact on Bank's overall performance. The Bank has a
talented workforce of more than 77,000 employees. Bank's HR has taken a number of
initiatives for recruiting, strengthening and developing its human resources through
various activities viz. recruitment of talent in highly specialized fields in order to tap
the potential and garner higher business/revenue across various verticals & new
business avenues and also to compensate the large number of superannuation; strengthening
performance management system through Project SparshPlus, addressing training needs/
leadership development needs across the Bank through leadership development programs,
coaching programs and capability building; succession planning and
health and wellness initiatives for the employees. These initiatives
have resulted in increased level of employee engagement and productivity over the years.
The Bank has a history of setting the bar high when it comes to
implementing fresh ideas and methods. The primary business facilitators are
"PEOPLE," who are at the centre of all activities. The Bank has introduced a
number of creative employee-centric initiatives as part of its organizational
transformation projects, which focuses on people, processes, and systems. The Bank has
also carried out initiatives to revamp important systems and procedures.
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' for the second time in a
row by Great Place to Work Institute India. It is a gold standard recognition framework in
assessing, enabling and recognizing work place culture in the organizations around the
globe. Bank also won the most admired Best Bank Award in Talent and Workforce by BT-KPMG
in Jan'23. With this certification, Bank has made a distinctive mark among Banks with
best practices in Talent Management and Workforce in the country.
The following initiatives have been taken during the year which have
had a direct and significant impact on Bank's performance:
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
2022 under which preventive health checkups and fitness drives were conducted. Online Yoga
Classes for all employees during wellness month was organized at the Bank level. More than
200 activities like Health Checkup, Eye/Dental Checkup, Blood Donation Camp, Yoga/Zumba
Camps, and Webinars by eminent health experts were also organized. 15,000+ staff members
and 2800+ family members have been directly covered.
Bank's Annual Mandatory Health Check-up Scheme is for all
permanent & confirmed employees and their spouses which facilitates to detect health
issues before they start and enable to take timely prevention and cure with the right
health services, screenings and treatments. Health Check-up is facilitated by tie-up
hospitals/ diagnostic centers by Zonal Offices/ Regional Offices at local level and PAN
India through service provider. Due to increase in the number of centers and awareness
among employees regarding medical health check-up, the percentage of employees who have
availed health check-up has increased tremendously from 25% in FY 22 to 42% in FY 23 with
a rise of 17%.
Employee Assistance Programme
Bank has put in place ‘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 2023, 184 workshops were conducted to sensitize the
employees on various aspects of mental, psychological and emotional wellbeing covering
more than 13,000 employees. Focused ‘Emotional Quotient' (EQ) Workshops were
conducted successfully for Branch Managers. The EQ workshops focused on various aspects
with an aim to provide insights to the Branch Managers to resolve conflict effectively,
adapt to changing business goals / circumstances and decision making. It also aimed to
help in developing collaborative approach and effective communication. For the year
2023-24, a focused outreach program is planned in association with ‘EAP India'
(the service provider), for the Joint Managers through workshops on the topic ‘From
Stress to Strength: Using Emotional Intelligence to Thrive under Pressure'. More than
500 counselling sessions were conducted helping 468 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-2023' survey, the overall employee engagement
score for the Bank stood at 75%.
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.
On the occasion of our Bank's 115th Foundation Day on or around
20th July 2022 and on the occasion of Republic Day Bank undertookthe following activities:
• Blood Donation - more than 15000 units of Blood
• Distribution of Saplings/ Tree Plantation - around 45000
saplings planted
• Cleanliness Drives - more than 2700 drives in various localities
• Distribution of materials and miscellaneous items to poor and
needy - more than 90000 items
• Distribution of materials and miscellaneous items to old age
homes, orphanages, disability centers etc. - more than 65000 items
• Conducting Health Check-up Camps - more than 5000 people were
covered
Learning and Development
The Bank holds a strong belief in the significance of learning and
development for nurturing its human capital. It boasts of a flexible and adaptable
learning system that has been further strengthened by the pandemic. The Bank's swift
response to the crisis has facilitated the establishment of a resilient digital training
infrastructure that effectively addresses the employees' learning and developmental
requirements.
More than 68,830 Bank's employees received training through the
Apex Academy, 18 Zonal Academies, and 4 Baroda Satellite Learning Units, along with
eLearning through Baroda Gurukul in this financial year, and help improving their
performance.
In FY 2023, Bank has leveraged its Learning Management System (Baroda
Gurukul) to facilitate learning and development across the Bank including overseas
establishment, which has helped Bank to align training needs as per business goals and
ensuring compliance across territories. Significant utilization of digital process and LMS
platform helped Bank to impart learning to staff in timely manner and extending benefit of
cost optimization to shareholders.
The Bank has been placing a strong emphasis on the acquisition of new
age skills and IDP based training to enhance its human capital. In line with this, it has
introduced simulation games that replicate real-life business scenarios to better educate
its staff. To further enhance the learning experience, the Bank has adopted a blended
learning approach that combines traditional and digital methods, with 365*24 availability.
In a collaborative effort to synergize external resources and promote a
hybrid learning model, the Bank has partnered with prominent organizations such as AAFM,
CRISIL, and NIIT to provide training to its Wealth Management Executives. This pilot phase
will allow the Bank to refine its approach and fine-tune the training process to better
serve the learning and development needs of its employees.
Overall, the Bank is committed to providing its employees with the
necessary training and development opportunities to succeed in their roles and achieve
their career aspirations.
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 has migrated Ex-Employee portal to HR Connect which is
providing one stop solution for accessing various modules and facilities viz. Pension Pay
Slip, PPO Generation, Family Pension Conversion, Tax Computation, Holiday Home Booking
etc. Ex-Employees can also apply for TE/DA Claims online through HR Connect.
Reservation Cell
An exclusive cell has been functioning to monitor the reservation and
other enabling provisions for employees belonging to Scheduled Castes (SC) /Scheduled
Tribes (ST) / Person with Disabilities (PWD) /Ex-Serviceman (Ex-SM) and Other Backward
Classes (OBC).
Executives in the rank of General Managers are appointed as Chief
Liaison Officers for SC/ST/PWD & Ex-Serviceman employees and for OBC employees
respectively who ensure compliance of various guidelines pertaining to them.
With effect from 1st February, 2019 reservation of 10% for Economically
Weaker Sections (EWS) in 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 in a year, as per Government guidelines.
Caste
category wise count as on March 31,2023 |
Cadre |
Total |
GEN |
SC |
ST |
OBC |
EWS |
Officer |
41837 |
19063 |
7362 |
3284 |
12118 |
10 |
Clerk |
27328 |
11636 |
4501 |
2835 |
8274 |
82 |
Sub staff |
7348 |
2217 |
2333 |
728 |
2070 |
0 |
Total |
76513 |
32916 |
14196 |
6847 |
22462 |
92 |
% to total staff strength |
43.02 |
18.55 |
8.95 |
29.36 |
0.12 |
Cadre |
PwD |
Ex-SM |
Officer |
1052 |
577 |
Clerk |
1055 |
3055 |
Sub staff |
164 |
598 |
Total |
2271 |
4230 |
%
to total staff strength |
3.00% |
5.53 |
Periodical Meetings: The Bank holds Quarterly 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.
School Tie-up for admission of Children of employees
Transfers and relocations are an inevitable part of banking career and
every year employees in all cadres are transferred as per Bank's guidelines.
Transfers involve relocation and one major challenge faced by employees upon transfer is
to arrange for quality education for their children due to mid-academic year admissions,
late admissions, change of school etc.
To ease out the inconvenience faced by the employees and to facilitate
admissions of their children, Bank has entered into a tie-up arrangement with two renowned
and reputed chain of schools having PAN India presence viz. ‘Ryan International Group
of Institutions' and ‘VIBGYOR Group of Schools' in the current year. The
classes offered are from Kindergarten to 12th Class. Children can also shift from one
School to other without hassle as per Schools' transfer policy.
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 has also put in place a
DEI Policy for promoting Diversity, Equity and Inclusion. 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 Check-up programme for women
employees, establishment of Creche 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 PSBs in initiating 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 52.77 Cr images have already been scanned
covering more than -7000- branches. Also, around -3.01- lac sq. ft. of space has been
unlocked in identified Branches of Bank of Baroda. After successful implementation of
Records Management System (RMS) / Document Management System (DMS) in Bank's Metro
& Urban and identified branches 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
The following are some the highlights of the Bank in an attempt to
reduce carbon footprint:
• Bank has Green Building Certificate GOLD rating for Baroda
Corporate Centre and SILVER rating for Baroda Sun Tower Building (Corporate Office
Buildings) through IGBC (Indian Green Building Council). Four of Bank's other
buildings in India have green building rating.
• Waterless Urinals installed at BCC & BST in all washrooms,
saving of approx. 7 lakh liters of water a year. The same is being implemented in other
Administrative Offices in PAN India in phased manner.
• Around 175 branches in rural/semi urban areas are being run on
Solar Energy, thereby reducing the consumption of power and carbon dioxide emissions.
Approx 2400 tons of Carbon Dioxide Emission reduced as a result of using Green
Energy/renewable/solar energy.
• All domestic branches have LED lights installed in the premises
for reduction of energy.
• Bio-Gas Plant (capacity of 500 kg wet waste) is installed at
Bank's building at BKC Mumbai which produces cooking gas that is used in Bank's
canteen and organic manure is used in garden/lawns.
• All boundary lights in the Corporate Office Building, Mumbai are
powered through Solar Energy with the help of Solar Tree, thereby adopting renewable
energy sources.
Other initiatives
• Several Govt, directed schemes viz. Swachhata Pakhwada, Special
Campaign 2.0 were organized efficiently.
• Cleanliness Campaign to ensure upkeep of Ambience of Branches
are also being carried out on ongoing basis.
• High speed seamless Wifi facility has been provided to all staff
members at Bank's important Building, i.e. BCC, BST & HO.
Implementation of Official Language (OL) Policy
Use of Hindi and other Indian Languages for promoting business as well
as providing digital products to the customers is a significant characteristic of the
Bank's language policy. This approach has been well appreciated by Government of
India and regulatory authorities from time to time. 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 2022-23 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.
The Meetings of Central Official Language Implementation Committee,
presided over by MD & CEO/ Executive Director of the Bank, were organized regularly on
quarterly basis and various new initiatives were taken during the year FY 202223. Your
Bank has made remarkable progress to provide Mobile Banking and transactional SMS services
in Hindi and 11 other regional languages. Whatsapp Banking service and Internet Banking
services are available to our customers in Hindi too. As a new initiative during the
period under review, Bank's Chatbot facility, Digital lending platform, BCMS portal
and BC knowledge portal have been made available in Hindi also. All the auto generated
emails from various apps and digital channels/portals of the Bank and loan sanction
letters containing terms and conditions generated through Bank's LLPS package have
been made available in bilingual i.e. Hindi & English.
Under various initiatives taken during the year, your Bank organised an
All India seminar on ‘Digital lending' in Amritsar wherein representatives from
RBI, Public Sector Banks, Insurance companies and other Financial Institutes participated
actively. The official language rating system for Branches/ offices and ‘Bhashayi
Choupal' programs for staff members were continued in the Bank. 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
‘Cyber-crime in Banking', ‘MSME Rin Maargdarshika' and ‘CASA
Margdarshika' were published. Hindi Diwas, Vishwa Hindi Diwas and Matribhasha Diwas
were celebrated at various offices/branches across India and overseas. Your Bank has also
rolled out a Mobile app named ‘Bob Abhivykti 2.0' for all serving and retired
staff members which provides online reading experience of all the magazines/ news letters/
house journals. This has proved to be an innovative idea of promoting go-green initiative.
With a view to boost implementation of Official Language in your Bank
and to create awareness among the staff members about various e-tools facilitating them to
work in Hindi and regional languages, a ‘Samarthya Toolkit/Branch Samarthya'
(Technical Toolkit) was developed by the Bank and around 18643staff members were imparted
training through508 programs during the period under review .Further ,various programs
/competitions were also organized in Schools/ Colleges across the country to connect the
young generation with your Bank which ultimately helped in mobilizing/
augmenting business .During FY ,2022-23 total 819 such programs were
organized in which about 50411 students participated.
Your Bank‘s efforts earned accolades from Government of India from
time to time .During the year ,your Bank was awarded with first Prize under"
Rajbhasha Kirti Puraskar" scheme of Govt .of India for outstanding performance in the
area of Official Language Implementation .Also ,Town Official Language Implementation
Committee) TOLIC (functioning under the auspices of the Bank at Vadodara was selected for
second Prize under the said scheme .Similarly ,TOLIC functioning under the auspices of the
Bank at Rajkot were selected for awards by the respective regional implementation offices
of Government of India .Our Zonal Office ,Bhopal and Regional Offices Surat City ,Goa and
Chandigarh were also awarded by the respective regional implementation Offices of
Government of India for outstanding performance in the area of Official Language
Implementation.
Bank continued with its unique scheme" Medhavi Vidyarthi Samman
Yojana "for popularising Hindi in 71 Universities of the country .Under this scheme
,cash prizes and commendation certificates are given to two meritorious students securing
First and Second positions respectively in M.A) .Hindi (examinations every academic year.
With a view to popularize the novels written in Indian languages ,your
Bank has instituted' Bank of Baroda Rashtrabhasha Samman ‘to honour the
translators who have translated the novels written in Indian language to Hindi in order to
make it available to mass readers.
Sustainability - ESG - An environmental friendly approach
The Bank recognizes the pressing importance of addressing climate
change and acknowledges global warming as one of the most significant threats to
businesses and communities worldwide .In recent times ,climate change risk has emerged as
a critical challenge for the financial industry .In response, the Bank is deeply committed
to minimizing the impact of climate change risk and actively working towards the
sustainable development of its banking operations .Our objective is to achieve economic
growth while ensuring the preservation of environmental and social ecosystems.
As a responsible policy measure, the Bank strictly adheres to
guidelines that prohibit financing borrowers involved in the establishment of new units
producing or consuming Ozone Depleting Substances (ODS). Similarly, small and
medium-scale units engaged in the manufacturing of aerosol units using Chlorofluorocarbons
(CFC) are not eligible for Bank financing. These measures align with our commitment to
reducing the greenhouse effect and contribute to a more sustainable future.
To strengthen our commitment to sustainability ,the Bank has
established the CSR and Sustainability Committee at the Board level .This committee plays
a pivotal role in implementing sustainable strategies and integrating responsible
Environment ,Social ,and Governance) ESG( practices throughout the organization
.Furthermore ,a
dedicated core committee has been formed to provide operational support
to the Board level committee in fulfilling its objectives effectively.
The Bank has implemented various initiatives to reduce emissions,
conserve energy, and minimize water consumption. A key focus area has been the reduction
of carbon emissions. Currently, around 175 branches located in rural and semi-urban
areas are powered by solar energy, resulting in reduced power consumption and
significant reductions in carbon dioxide emissions. Through the utilization of
renewable energy sources, we have successfully eliminated approximately 2400 tons of
carbon dioxide emissions. Additionally, the installation of LED lights in all 8200
branches has contributed to enhanced energy efficiency.
The Bank actively promotes sustainability awareness among the
stakeholders and have organized initiatives such as Swachhata Pakhwada to foster a culture
of sustainable living, environmental preservation ,and cleanliness .These efforts have
engaged citizens in cleanliness drives at public parks, railway stations ,and beaches ,in
addition to organizing health check-up camps .The Bank aims to inspire and encourage
active participation in creating a cleaner and healthier environment.
The Bank places significant emphasis on technology- enabled banking
through our platform" bobWorld ".This enables seamless and convenient
banking operations for our customers while reducing paper usage for transactions and the
need for physical visits to branches .The Bank has implemented a paperless approval
process internally and has digitized the document management ,contributing to enhanced
operational efficiency and reduced environmental impact.
As part of the Banks' commitment to environmental conservation,
the Bank has initiated the "Plant a Tree Program." For every auto or home loan
disbursed, the Bank plants a fruit-bearing tree on behalf of its customers.
The customers receive a Green Tree Plantation certificate that contains
details of the tree planted on their behalf .Each tree is geotagged and secured using
blockchain technology to ensure authenticity .Customers can track their planted tree
online ,view its exact geolocation ,and even visit the tree personally using the provided
coordinates. As of March 31, the Bank has planted over 1.5 lakh trees. Through this
program ,we strive to make a positive impact on the environment while promoting a greener
and healthier future for all .The Bank continually strive to integrate responsible
practices ,reduce its carbon footprint ,and actively engage in initiatives that benefit
our planet and society as a whole.
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 centers
have conducted 22405 training programmes and imparted training to 6.22 lakh youth, out of
which 4.24 lakh have already setup their own ventures or have secured wage employment. All
the 64 RSETIs are 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 Centers (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 centers 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 114 Centers for Financial
Literacy (CFLs) spread across 10 states and a Union Territory that are aimed at imparting
financial literacy in tribal and backward blocks through innovative and participatory
approach.
As a part of Bank's commitment towards protection of environment,
under Environmental, Social, and Governance (ESG) principles, Bank has implemented
planting a tree against each Auto loan/Housing loan disbursement. More than 1.50 lakh
trees has been planted till 31.03.2023.
Bank has also donated to various social causes viz., financial
assistance to deserving poor students for their undergraduation studies, donation of 2
distribution vehicles to NGO for providing mid-day meal to underprivileged and deprived
children in government schools, installation of 11 CCTV cameras at sensitive locations in
Gautam Buddh Nagar District, Uttar Pradesh for the public safety and security, donation of
vehicle for highway patrolling and combing operations in forest, medical support project
for curing Childhood Cancer.
Domestic Subsidiaries and Joint Ventures
BOB Financial Solutions Ltd.
BOB Financial Solutions Limited was established in 1994 as a
Non-Banking Financial Company, wholly owned by the Bank. Its primary business is issuance
of credit cards with its key differentiator being simple, easy-to-understand products that
are fairly priced, efficiently serviced, and can easily be availed through a digital-all
application process.
FY 2023 was a year of significant growth for BOB Financial. As per RBI
data, the company grew much faster than the industry, both in terms of number of credit
cards (76% vs. 16% for the industry) and spends (152% vs. 47% for the industry). The
company emerged as the 8th largest issuer of credit cards in India for FY 2023.
• BOB Financial doubled the acquisition of new credit cards in FY
2023, by issuing close to 1.2 million credit cards (compared to 0.5 million credit cards
issued in FY 2022). It consistently featured among the Top 10 issuers throughout the
Financial Year
• Retail spends too, more than doubled compared to FY 2022,
clocking approximately '17,300 crores (compared to '7,000 crores in FY 2022).
The company further cemented 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 including exclusive partnerships
with Defence Forces (Army, Assam Rifles and Coast Guard), HPCL and Snapdeal. Within the
BoB ecosystem, the company launched co-branded credit cards with Nainital Bank and the 3
Regional Rural Banks sponsored by Bank of Baroda. The Company also launched Vikram, a
credit card for police and paramilitary personnel and Empower, a credit card for the
self-employed customers.
The company launched multiple customer communication initiatives, both
to encourage card usage, as well as enhance customer engagement. This was especially
important in the light of regulatory mandates around activation of new cards and usage of
vintage cards.
To evoke brand recognition & connect beyond the regular business
reasons, a distinctive brand musical identity was launched and is now in use as background
score for all branded video content
BOB Financial continued to invest in technology, to drive business
growth and customer experience. A standalone Mobile App was launched to give complete
control of their credit card on the cardholder's smartphone. And it was also
integrated with BoB's bobWorld app, giving seamless access to BoB customers within
the Bank's app itself.
Automation of various processes was another focus area. RBI mandate
related processes, Risk categorization of customers, Re-KYC were some of the key processes
automated during FY 2023. Implementation of Finance & Procurement modules powered by
Oracle Fusion also began towards the end of FY 2023.
With focus on leveraging the Bank's distribution strength while
building its own, BOB Financial continued to invest both in human resources as well as
points of presence, to effectively align with all the Zones and Regions of Bank of Baroda.
Brief Highlights of BFSLfor FY 2023 are indicated below:
(Rs. in crore)
BOB
Financial Solutions Ltd. |
Particulars |
FY
2022 |
FY
2023 |
Total
Assets |
1562.45 |
3,520.45 |
Net
Profit/(Loss) for current FY |
10.07 |
24.62 |
Net
NPA levels for current FY |
29.07 |
68.55 |
Credit rating |
Crisil
A1 + |
Crisil
A1 + |
India
rating A1 + |
India
rating A1 + |
Return
on Assets |
0.66% |
0.71% |
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 continued to receive good traction for its businesses during FY
2023 despite challenging market conditions. Investment banking team successfully closed
several transactions across debt resolutions, debt syndication, DCM, M&A advisory and
capital markets. Retail Equities business successfully launched a completely new revamped
and customer friendly Trading Platform/ Application with seamless trading capabilities,
comparable to the best in Industry. This resulted in significant increase in monthly
client acquisition run rate from an average of 1,000 accounts per month last financial
year to 11,000 accounts per month in recent months. Institutional broking revenue
increased YoY despite drop in trading volumes across both the Equities and F&O
segments of the Exchanges.
During the year, BOBCAPS received Depositary Participant license from
SEBI. This will enable the Company to offer Demat services to its clients alongwith
Trading Accounts to offer a seamless experience. BOBCAPS also entered into an alliance
with Maybank Securities Pte. Ltd., Singapore for Foreign Institutional client's
business. This will ensure BOBCAPS has presence in International market. These initiatives
will augment new sources of the revenue for the company going forward.
Brief Highlights of BOB Capital Markets Ltd for FY 2023 are indicated
below:
(Rs. in crore)
BOB
Capital Markets Ltd |
Particulars |
FY 2022 |
FY 2023 |
Total
Assets |
187.97 |
179.34 |
Net
Profit for current FY |
7.72 |
1.25 |
Customer
base (Nos) |
35,191 |
1,00,929 |
Total
number of branches |
2 |
3 |
Baroda Global Shared Services Ltd.
Baroda Global Shared Services, a wholly owned subsidiary of the bank is
outcome of a strategic decision made by the Bank in 2017. The intent was to integrate
service functions into a single entity, thereby reducing service duplication and business
unit silos, creating synergies and economies of scale. Bank has been able to achieve
improved efficiency and substantial cost saving because of centralisation. Subsequent
automation of various processes has resulted in freeing of workforce bandwidth at branches
and providing an opportunity to focus on core activities. This set-up has enabled the Bank
to focus more on sales and service function and contributing significant value by
delivering on the crosssell initiatives for the Bank.
Basis successful set-up and scaling-up of centralised processing by
BGSS, Bank reposed confidence in BGSS by leveraging its capabilities in new areas of
sourcing loans and improving collection efficiency, thereby augmenting Bank's
capacity.
In FY 2023, BGSS launched Digital Penetration, Rural & Agri Banking
(DST) and Pimpri Chinchwad Municipal Corporation (PCMC) Tax Collection (Government
Business) for the Bank. Further to aid Bank's Financial Inclusion objectives, BGSS
has been empanelled as a Corporate Business Correspondent for the bank to deploy BC agents
Pan-India (especially in semi-urban and rural areas).
The Shared Services entity also ensures that robust and stringent
controls are in place through various internal and external assessments conducted from
time-to-time, basis availability of data sets through common platforms. Some of the key
achievements of BGSS are as follows:
1. Property tax collection through digital mode of INR 109 Cr. with
over 26,800 transactions was executed across 17 zonal offices, an overall increase of 184%
in the Pimpri Chinchwad Municipal Corporation (PCMC) Tax Collection business (Government
business).
2. Within a span of 10 months, 1,258 BCAs were appointed along with
1440 KOIDs executed to further support BCs, thereby expanding the overall Financial
Inclusion business.
3. In line with augmenting of digital banking, BOB World, Corporate
Banking, B3 Account Opening and Inbound services have gone live. There has been a
month-on- month improvement in conversion numbers for manual calling with a focus to shift
branch walk-in customers to digital channels.
4. CPPCs (Central Pension Processing Center) operations of six states
migrated to GIFT City.
5. BGSS is supporting bank in deploying new ATM machines - 4,500+
machines deployed.
6. Provided support to EDPMS team for marking 5,000 shipping bills as
Director of Enforcement (DOE) in TRRACS portal (Regulatory Requirement).
7. With a focus on customer delight, BGSS has supported bank and helped
setting-up an NR Operations Helpdesk which went live in January 2023 to extend end-to- end
query resolution, complaints handling, feedback acknowledgement & suggestions for
NRI/NRO customers.
8. 100% Target achieved for Mar'23 with 1,200+ Cr. business
generated for DST products - Auto Loan, Home Loan, Education Loan and LAP
9. Evaluation of Cyber Security Incident Team (CSIRT) is complete;
CSIRT plan is in place.
10. BOB World Orbit portal - an Online Public B2B e-commerce platform
to carry out business activities. MVP (Minimum Viable Product) has been developed.
11. BGSS has delivered on Lean Six Sigma Project to improve the FTR% in
Current Account Opening (Non-Individual) Process and achieved an efficiency gain in FTR %
from 24.72% to 50%.
12. The annual CSAT survey was conducted in Dec'22 with 87% of the
audience following in Excellent & Very Good category.
Barodasun Technologies Ltd.
Barodasun Technologies Limited has been incorporated as a wholly owned
subsidiary of Bank of Baroda on July 5, 2017 with the Registrar of Companies, Mumbai,
Maharashtra. The company has been formed to deliver system integration/ consultancy
services on matters relating to ever evolving IT enabled business solutions/IT software
product application and implementation across various lines of business, for Bank of
Baroda.
The Company is yet to commence full-fledged operations and it is
envisioned to initiate activities like programme / project management and support services
to implement enterprisewide 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 167
branches as on March 31, 2023. The total business of NBL increased to '12,305 crore on
March 31,2023 from '11,698 crore as on March 31, 2022. The Bank posted a net profit
of '46.30 crore in FY 2023 against a net profit of '28.93 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 from
March 14, 2022 & became the subsidiary of the Bank.
Following the merger, the product range, AUM as well as share of equity
to AUM has increased substantially with touch points in 140 towns and cities across India.
During the FY 2022 -23 AMC grew faster than Industry. AAUM during Jan - March 23 quarter
was '24,507 crores up 15% YoY compared to the industry growth of 6%.
In the FY 2022-23 company continued to expand its third- party
distribution network 16% YoY, with particular focus on IFAs. The Company launched 4 new
products successfully. This includes one equity fund - BBNPP Flexi Cap Fund, one hybrid
fund - BBNPP Multi Asset Fund and two Passive Debt Index Funds - BBNPP NIFTY SDL December
2026 INDEX Fund and BBNPP NIFTY SDL December 2028 INDEX Fund.
Brief Highlights of Baroda BNP Paribas Asset Management India Pvt. Ltd
for FY 23 are indicated below:
C in crore)
Baroda
BNP Paribas Asset Management
India Pvt. Ltd. |
Particulars |
FY 2022 |
FY 2023 |
Total
Assets |
200.24 |
187.36 |
Net
Profit for current FY |
(22.28) |
(6.88) |
Average
Assets under Management (AAuM) |
23,453* |
26,436* |
Equity
to overall AAuM (%) |
53% |
56% |
*Includes advisory AAuM of '2,060 crores in FY 21-22 and '1,929 crores
in FY 22-23.
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 share capital of '1,433 Crores
(including share premium). 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 investor.
In FY 2023, IndiaFirst Life registered YoY growth of 27% in Individual
New Business APE (Annual Premium Equivalent). On Individual New Business APE basis,
IndiaFirst Life's had a private market share of 2.5% and grew at 1.4 times the
overall Life Insurance Industry (including LIC). This record of
growing at a faster rate than overall Industry has been upheld by
IndiaFirst Life for last consecutive 9 years (since FY 201415). The company improved its
ranking by 1 position to 10th in Individual New Business APE among the private peers as
compared to last year and has assets under management (AUM) at '21,683 Crores as on 31st
March 2023. IndiaFirst Life posted Net Profit of '76.25 crore for FY 2023, total Income of
'7380 crore including total Premium Income of '6074 crore.
IndiaFirst Life was certified as a Great Place to Work (GPTW) for the
fifth 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 fifth time in
a row. The Company was also recognised among Best Brands of 2022 by The Economic Times
India Infradebt Ltd.
India Infradebt 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 of
'17,711 crores, Net Profit of '369 crores and Return on Equity of 14%
during FY 2023. Infradebt has also been paying dividends continuously for the past six
years.
A brief summary of Bank's all the domestic subsidiaries and
JointVentures is given below:
(Rs. in crore)
Entity |
Owned
funds |
Total
assets |
Net
profit |
Offices |
Staff |
BOB
Financial Solutions Ltd |
1009.52 |
3520.45 |
24.62 |
44 |
485 |
BOB
Capital Markets Ltd. |
161.29 |
179.34 |
1.25 |
3 |
106 |
Baroda Sun
Technologies
Limited |
4.55 |
4.69 |
0.06 |
1 |
1 |
Baroda
Global Shared Services Ltd. |
39.55 |
56.50 |
9.50 |
4 |
5789 |
The
Nainital Bank Ltd. |
727.79 |
8656.67 |
46.30 |
171 |
1223 |
Baroda
BNP Paribas Asset Management India Pvt. Ltd. |
154.15 |
187.36 |
(6.88) |
13 |
166 |
Baroda
BNP Paribas Trustee India Pvt. Ltd. |
0.25 |
0.38 |
0.01 |
1 |
1 |
IndiaFirst
Life Insurance Company Ltd. |
1069.00 |
22090.00 |
76.00 |
29 |
3,595 |
India
Infradebt Limited |
2781.30 |
19301.70 |
368.60 |
1 |
28 |