Bank of Baroda

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Bank of Baroda
बैंक ऑफ़ बडौदा
Public
Traded as BSE532134
Industry Banking, Financial services
Founded 20 July 1908 (1908-07-20)
Founder Maharaja Sayajirao Gaekwad[1]
Headquarters Vadodara (Baroda), Gujarat, India
Area served
Worldwide
Key people
P S Jayakumar(Chairman & MD)
Products Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management
Owner Government of India
Website www.bankofbaroda.com

Bank of Baroda is an Indian state-owned banking and financial services company headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It is the second-largest bank in India, after State Bank of India, and offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialised subsidiaries and affiliates. In addition to its headquarters in its home state of Gujarat, it has a corporate headquarters in the Bandra Kurla Complex in Mumbai.

Based on 2014 data, it is ranked 801 on Forbes Global 2000 list.[2][3] BoB has total assets in excess of 3.58 trillion, a network of 5307 branches in India and abroad, and over 8000 ATMs. [4]

The bank was founded by the Maratha, Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on 20 July 1908 in the Princely State of Baroda, in Gujarat.[5] The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by the Government of India and has been designated as a profit-making public sector undertaking (PSU).

September 2014 Data[edit]

Global_Business 154.28 billion (US$2.3 billion) (Sept 2014)
Total Deposits 91.81 billion (US$1.4 billion) (Sept 2014)
Total Advances 62.47 billion (US$940 million) (Sept 2014)
Total Investments 21.04 billion (US$320 million) (Sept 2014)
Total Assets 106.84 billion (US$1.6 billion) (Sept 2014)
Capital 0.07 billion (US$1.1 million) (Sept 2014)
Reserves & Surplus 6.19 billion (US$93 million) (Sept 2014)
Gross Profit(H1) 0.79 billion (US$12 million) (Sept 2014)[6]
Net Profit(H1) 0.40 billion (US$6.0 million) (Sept 2014)[7]
Domestic Deposits 61.48 billion (US$930 million) (Sept 2014)
Domestic CASA 19.61 billion (US$300 million) (Sept 2014)
Domestic Advances 41.91 billion (US$630 million) (Sept 2014)
Global Gross NPA 2.11 billion (US$32 million) (Sept 2014)
Global Net NPA 1.09 billion (US$16 million) (Sept 2014)
Ret'n Assets(%)Annualzd 0.75% (Sept 2014)
Basel III Tier I CRAR 9.26% (Sept 2014)
Basel III CRAR 12.19% (Sept 2014)
Book Value/Share 14.18 billion (US$210 million) (Sept 2014)[6][8]
Customer base 47.74 million
Deposits accounts 53.35 million
Borrower accounts 3.04 million
Employees 49956
Domestic Branches 5193 [9]
Metro Branches 969
Semiurban branches 1321
Rural Branches 1833
Overseas branches 60
Overseas Offices 44
ATM 7000 approx

History[edit]

1908–1959[edit]

Maratha Maharaja Sayajirao Gaekwad III, the founder of Bank of Baroda

In 1908, Maharaja Sayajirao Gaekwad III, one of the knights of the Maratha Kingdom, set up the Bank of Baroda (BoB),[1] with other stalwarts of industry such as Sampatrao Gaekwad, Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM Chokshi.[10] Two years later, BoB established its first branch in Ahmedabad. The bank grew domestically until after World War II. Then in 1953 it crossed the Indian Ocean to serve the communities of Indians in Kenya and Indians in Uganda by establishing a branch each in Mombasa and Kampala. The next year it opened a second branch in Kenya, in Nairobi, and in 1956 it opened a branch in Tanzania at Dar-es-Salaam. Then in 1957 BoB took a giant step abroad by establishing a branch in London. London was the center of the British Commonwealth and the most important international banking center. In 1958 BoB acquired Hind Bank (Calcutta; est. 1943), which became BoB's first domestic acquisition.

1960s[edit]

In 1961, BoB merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra. BoB also opened a branch in Fiji. The next year it opened a branch in Mauritius. Bank of Baroda In 1963, BoB acquired Surat Banking Corporation in Surat, Gujarat. The next year BoB acquired two banks: Umbergaon People’s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.

In 1965, BoB opened a branch in Guyana. That same year BoB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistani War of 1965. It is unclear when BoB had opened the branch. In 1967 it suffered a second loss of branches when the Tanzanian government nationalised BoB’s three branches there at (Dar es Salaam, Mwanga, and Moshi), and transferred their operations to the Tanzanian government-owned National Banking Corporation.

In 1969 the Indian government nationalised 14 top banks, including BoB. BoB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest.

1972s[edit]

In 1972, BoB acquired Bank of India's operations in Uganda. Two years later, BoB opened a branch each in Dubai and Abu Dhabi.

Back in India, in 1975, BoB acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand state.

International expansion continued in 1976 with the opening of a branch in Oman and another in Brussels. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a major center for diamond cutting.

Two years later, BoB opened a branch in New York and another in the Seychelles. Then in 1979, BoB opened a branch in Nassau, the Bahamas.

1980s[edit]

In 1980, BoB opened a branch in Bahrain and a representative office in Sydney, Australia. BoB, Union Bank of India and Indian Bank established IUB International Finance, a licensed deposit taker, in Hong Kong. Each of the three banks took an equal share. Eventually (in 1999), BoB would buy out its partners.

A second consortium or joint-ventrue bank followed in 1985. BoB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established Indo-Zambia Bank in Lusaka. That same year BoB also opened an Offshore Banking Unit (OBU) in Bahrain.

Back in India, in 1988, BoB acquired Traders Bank, which had a network of 34 branches in Delhi.

1990s[edit]

In 1990, BoB opened an OBU in Mauritius, but closed its representative office in Sydney. The next year BoB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&S’s branch had been established before 1970 and Union Bank’s after 1980. The Reserve Bank of India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and subsequent losses.

Then in 1992 BoB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange. The next year, BoB closed its OBU in Bahrain.

In 1996, BoB Bank entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, owning 66% of the bank's equity.

In 1997, BoB opened a branch in Durban. The next year BoB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a response to regulatory changes following Hong Kong’s reversion to the People’s Republic of China. The now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license bank. BoB also acquired Punjab Cooperative Bank in a rescue. BoB incorporate wholly owned subsidiary BOB Capital Markets Ltd for broking business.

In 1999, BoB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. In Guyana, BoB incorporated its branch as a subsidiary, Bank of Baroda Guyana. BoB added a branch in Mauritius and closed its Harrow Branch in London.

2000s[edit]

In 2000 BoB established Bank of Baroda (Botswana). The bank has three banking offices, two in Gaberone and one in Francistown. In 2002, BoB converted its subsidiary in Hong Kong from deposit taking company to a Restricted License Bank.

In 2002 BoB acquired Benares State Bank (BSB) at the Reserve Bank of India’s request. BSB was established in 1946 but traced its origins back to 1871 and its function as the treasury office of the Benares state. In 1964, BSB had acquired Bareilly Bank (est. 1934), with seven branches in western districts of Uttar Pradesh; BSB also had taken over Lucknow Bank in 1968. The acquisition of BSB brought BoB 105 new branches. Lucknow Bank, a unit bank with its only office in Aminabad, had been established in 1913. Also in 2002, BoB listed Bank of Baroda (Uganda) on the Uganda Securities Exchange (USE). The next year BoB opened an OBU in Mumbai.

In 2004 BoB acquired the failed Gujarat Local Area Bank. BoB also returned to Tanzania by establishing a subsidiary in Dar-es-Salaam. BoB also opened a representative office each in Kuala Lumpur, Malaysia, and Guangdong, China.

  • 2005: BoB built a Global Data Centre (DC) in Mumbai for running its centralised banking solution (CBS) and other applications in more than 1,900 branches across India and 20 other counties where the bank operates. BoB also opened a representative office in Thailand.
  • 2006: BoB established an Offshrore Banking Unit (OBU) in Singapore.
  • 2007: In its centenary year, BoB’s total business crossed 2.09 trillion (short scale), its branches crossed 2000, and its global customer base 29 million people. In Hong Kong, Bank got Full Fledged Banking license and business of its Restricted License Banking subsidiary was taken over Bank of Baroda branch in Hong Kong w.e.f.01.04.2007.
  • 2008: BoB opened a branch in Guangzhou, China (02/08/2008) and in Kenton, Harrow United Kingdom. BoB opened a joint venture life insurance company with Andhra Bank and Legal and General (UK) called IndiaFirst Life Insurance Company.

2010s[edit]

In 2010, Malaysia awarded a commercial banking licence to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. That same year, BoB also opened a branch in New Zealand.

In 2011, BoB opened an Electronic Banking Service Unit (EBSU) was opened at Hamriya Free Zone, Sharjah (UAE). It also opened four new branches in existing operations in Uganda, Kenya (2), and Guyana. BoB closed its representative office in Malaysia in anticipation of the opening of its consortium bank there. BoB received 'In Principle' approval for the upgrading of its representative office in Australia to a branch.

The Malaysian consortium bank, India International Bank Malaysia (IIBM), finally opened in Kuala Lumpur, which has a large population of Indians. BOB owns 40%, Andhra Bank owns 25%, and IOB the remaining 35% of the share capital. IIBM seeks to open five branches within its first year of operations in Malaysia, and intends to grow to 15 branches within the next three years.

Subsidiaries[edit]

BOB Capital Markets (BOBCAPS) is a SEBI-registered investment banking company based in Mumbai, Maharashtra.[11] It is a wholly owned subsidiary of Bank of Baroda.[12] Its financial services portfolio includes initial public offerings, private placement of debts, corporate restructuring, business valuation, mergers and acquisition, project appraisal, loan syndication, institutional equity research, and brokerage.

Bobcards Ltd is a credit card company, 100% subsidiary of Bank of Baroda. The company is in the business of Credit cards, Acquiring Business & back end support for Debit cards operations to Bank of Baroda. Bank of Baroda had introduced its first charged card named BOBCARD in the year 1984. The whole operation of this plastic card was managed by Credit card division of Bank of Baroda. It established a wholly owned subsidiary, Bobcards Limited in the year 1994 to cater to the need of rapidly growing credit card industry in a focused manner. BOBCARDS Ltd is the first Non-banking company in India issuing credit cards

International presence[edit]

In its international expansion, the Bank of Baroda followed the Indian diaspora, especially that of Gujaratis. The Bank has 104 branches/offices in 24 countries including 61 branches/offices of the bank, 38 branches of its 8 subsidiaries and 1 representative office in Thailand. The Bank of Baroda has a joint venture in Zambia with 16 branches.[13]

Among the Bank of Baroda’s overseas branches are ones in the world’s major financial centres (e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well as a number in other countries. The bank is engaged in retail banking via the branches of subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans has recently upgraded its representative office in Australia to a branch and set up a joint venture commercial bank in Malaysia. It has a large presence in Mauritius with about nine branches spread out in the country.[14]

The Bank of Baroda has received permission or in-principle approval from host country regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing operations in the United Kingdom, the United Arab Emirates, and Botswana.

The tagline of Bank of Baroda is "India's International Bank".

Affiliates[edit]

IndiaFirst Life Insurance Company is a joint venture between Bank of Baroda (44%) and fellow Indian state-owned bank Andhra Bank (30%), and UK’s financial and investment company Legal & General (26%).[15] It was incorporated in November, 2009 and has its headquarters in Mumbai.[15] The company started strongly, achieving a turnover in excess of 2 billion in its first four and half months.[16][17][18]

See also[edit]

References[edit]

  1. ^ a b "India's International Bank - About Us - The Heritage". Bank of Baroda. 20 July 1908. Retrieved 13 September 2013. 
  2. ^ "Bank of Baroda". Forbes. Retrieved 3 April 2015. 
  3. ^ "Resilience to help Bank of Baroda stay a step ahead of peers". Economictimes. 30 July 2010. Retrieved 28 April 2012. 
  4. ^ "Bank of Baroda Branches". bankifsccodes.co.in. Retrieved 2014-05-09. 
  5. ^ "About us - The Heritage". Bank of Baroda. Retrieved 27 March 2013. 
  6. ^ a b http://www.moneycontrol.com/news/results/bank-of-baroda-q3-profit-tanks-68-provisionstax-hurt_1287893.html
  7. ^ http://www.business-standard.com/company/bank-of-baroda-5456.html
  8. ^ http://www.bseindia.com/stock-share-price/bank-of-baroda/bankbaroda/532134/
  9. ^ "Branch Locator". Bank of Baroda. Retrieved 13 April 2015. 
  10. ^ "The Heroes". Bank of Baroda. Retrieved 13 September 2013. 
  11. ^ "Contact Us". BOB Capital Markets Ltd. Retrieved 3 February 2011. 
  12. ^ "BOB Capital to begin e-broking by March-end". Business-standard.com. 9 September 2008. Retrieved 3 February 2011. 
  13. ^ "India's International Bank - International". Bank of Baroda. Retrieved 3 April 2015. 
  14. ^ "India's International Bank - Branch Locator - Overseas Branches - Mauritius". Bank of Baroda. Retrieved 13 September 2013. 
  15. ^ a b anurag. "IndiaFirst Life Insurance becomes the 23rd life insurer in India". Banknet India. Retrieved 13 September 2011. 
  16. ^ "IndiaFirst new business premium crosses Rs 200 crore-Finance-Banking/Finance-News By Industry-News-". The Economic Times. 5 April 2010. Retrieved 28 April 2010. IndiaFirst Life today said it has collected first year premium of over Rs 200 crore in just four and half months since the insurance company became operational. 
  17. ^ "IndiaFirst Life Insurance to begin operations by Dec". The Hindu BusinessLine. 10 November 2009. Retrieved 28 April 2010. 
  18. ^ "IndiaFirst Life eyes Rs 100 crore". dnaindia.com. 26 December 2009. Retrieved 28 April 2010. 
  19. ^ "Life Insurance|term plan|investment plans - IndiaFirst Life Insurance". Indiafirstlife.com. Retrieved 13 September 2013. 

Further reading[edit]

  • Tripathi, Dwijendra and Priti Misra (1985). Towards a New Frontier: History of the Bank of Baroda, 1908–1983. (New Delhi, India: Manohar), SAYEED INDIAN.

External links[edit]

Media related to Bank of Baroda at Wikimedia Commons