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Bank of Baroda.

BSE: 532134 Sector: Financials
BSE 00:00 | 04 Dec 59.05 0.75






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OPEN 59.00
VOLUME 4731337
52-Week high 105.65
52-Week low 36.05
Mkt Cap.(Rs cr) 27,284
Buy Price 58.90
Buy Qty 105.00
Sell Price 59.00
Sell Qty 7416.00
OPEN 59.00
CLOSE 58.30
VOLUME 4731337
52-Week high 105.65
52-Week low 36.05
Mkt Cap.(Rs cr) 27,284
Buy Price 58.90
Buy Qty 105.00
Sell Price 59.00
Sell Qty 7416.00

Bank of Baroda. (BANKBARODA) - Director Report

Company director report

Your Directors have pleasure in presenting the One Hundred and Twelfth Annual Report ofthe Bank with the audited Balance Sheet Profit & Loss Account and the Report onBusiness and Operations for the year ended March 312020 (FY 2020).

Financial Performance

Rs crore

Particulars 31.03.19* 31.03.20
Deposits 638689.7 945984.4
of which- Domestic Deposits 517966.6 808705.5
International Deposits 120723.2 137278.9
Domestic Deposits 517966.6 808705.5
of which- Current Account Deposits 34327.6 49650.1
Savings Bank Deposits 174076.2 266301.3
CASA Deposits 208403.8 315951.4
Domestic CASA to Domestic Deposits (%) 40.2 39.1
Advances 468818.7 690120.7
of which- Domestic Advances 370185.0 570340.8
International Advances 98633.8 119780.0
Total Assets 780987.4 1157915.5
Net Interest Income (NII) 18683.8 27451.3
Other Income 6294.5 10317.3
of which-Fee Income 3576.1 4951.0
Forex Income 693.2 1016.1
Trading Gains 989.5 2750.7
Recovery from PWO 832.0 1531.8
Non-customer interest income 204.0 67.0
NII + Other Income 24774.7 37768.6
Operating Expenses 11288.0 18077.2
Operating Profit 13486.8 19691.4
Provisions 12788.7 21493.5
of which- Provisions for NPAs and Bad debts written off 12192.40 16404.9
Profit Before Tax 698.2 -1802.1
Provision for Tax 264.6 -2348.3
Net Profit 433.5 546.2
Statutory Reserve 108.4 145.9
Capital Reserve 210.4 822.2
Revenue and Other Reserves


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

*Figures are related to standalone Bank of Baroda financial results for pre-amalgamation period hence not comparable with post amalgamation financial results for theyear ended March 312020

Key Performance Indicators 31.03.19* 31.03.20
Average Cost of Funds (%) 4.83 5.11
Average Yield (%) 7.28 7.55
Average Interest Earning Assets 686743.0 1007058.7
Average Interest Bearing Liabilities 648495.6 949179.9
Net Interest Margin (%) 2.72 2.72
Cost-Income Ratio (%) 45.56 47.86
Return on Average Assets (ROAA) (%) 0.06 0.06
Return on Equity (%) 1.18 1.23
Book Value per Share (') 138.42 96.22
Basic EPS (Rs) 1.64 1.36

Total deposits of the Bank increased to Rs 945985 crore as on March 31 2020.Advances increased to Rs 690121 crore led by international loans and domestic retailloans. The net interest margin (NIM) was stable at 2.72% in FY 2020. The Bank posted anoperating profit of Rs 1 9691 crore. Total provisions (other than tax) and contingencieswas Rs 21493 and provisions for NPAs were Rs 1 6405 crore. The Bank posted a net profitof Rs 546 crore.

Capital Adequacy Ratio (CAR)

Ratios in %

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

The Capital Adequacy Ratio (CAR) and CET-1 of the Bank stood at 13.30% and 9.44%respectively as on March 31 2020. The consolidated group capital adequacy ratio was13.87%.

The Bank's net worth as of March 31 2020 was Rs 44457 crore comprising of paid-upequity capital of Rs 925 crore and reserves of Rs 43532 crore (excluding revaluationreserves foreign currency translation reserves and other intangible assets). The bookvalue of the share (FV Rs 2) was Rs 96.22 as on 31.03.2020.


Reserve Bank of India (RBI) Vide notification RBI/2019-20/218DOR.BPBC.No.64/21.02.067/2019-20 dated April 17 2020 has advised banks due to heighteneduncertainty caused by COVID-19 to conserve capital retain their capacity support theeconomy and absorb losses. Accordingly Bank has not declared dividend pay outs from theprofits pertaining to the financial year ended March 312020.

Management Discussion and Analysis Global Economy

Growth in the global economy slowed down to 2.9% in Calendar Year (CY) 2019 comparedwith 3.6% in CY 2018. With the ongoing COVID-19 pandemic global GDP growth is expected tocontract sharply by 4.5% in CY 2020 as per latest estimates by IMF The sluggishness in GDPgrowth was driven by contraction in world trade volume from 3.8% in CY 2018 to 0.9% in CY2019 as trade and tariff wars disrupted global value chains. This in turn impacted globalmanufacturing activity and investments. Apart from this higher interest rates Brexit andwaning effects of US fiscal stimulus also contributed to the moderation in growth.Further global commodity prices also fell by 10.2% in CY 2019 after increasing by 29.4%in CY 2018.

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

Indian Economy

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

Industrial activity was relatively subdued in FY 2020 and increased by only 0.9%compared with an increase of 4.6% in FY 2019. The dip in industrial activity was led bymanufacturing sector which registered an increase of only 0.1% in FY 2020. Servicesactivity was also muted and increased by 5.5% compared with an increase of 7.7% in FY2019. Growth slipped in Q4 FY 2020 on the back of domestic and global disruptions onaccount of measures taken to restrict the spread of COVID-19.

While growth came off CPI inflation edged up to 4.8% in FY 2020 from 3.4% in FY 2019.This was on account of higher food inflation. Food inflation build-up was visible in H2 FY2020 at 10.9% compared with (-) 1.5% in H2 FY 2019. Unusual supply disruption due toweather and higher vegetable prices were responsible for increase in food inflation. Coreinflation however moderated to 4% in FY 2020 compared with 5.8% in FY 2019 especially onaccount of muted oil prices and slowdown in demand.

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

Developments in Indian Banking

Credit growth of Scheduled Commercial Banks (SCBs) declined to a multiyear low of 6.1%in FY 2020 from 13.2% in FY 2019. While retail loans continued to remain buoyant growthin agriculture MSME and corporate sector declined due to a fall in demand as seen inlower GDP growth. However deposit growth continued to show traction at 7.9% YoY in FY2020. Besides subdued credit growth the banking sector saw some semblance of improvementin asset quality triggered by effective resolution of some accounts under IBC and improvedcapital position due to recapitalisation of Public Sector Banks (PSBs).

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

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

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

Government of India too announced a series of reform measures for the banking sector.First the number of PSBs has been reduced to 12 by way of merger of 10 PSBs into 4 largePSBs. Second Government also recapitalised PSBs in FY 2020 with a total capital injectionof Rs 65443 crore. Bank of Baroda too received capital of Rs 7000 crore. Thirdcorporate tax rate was reduced for all corporate entities including banks. FourthGovernment announced Rs 21 lakh crore package for the economy which included a package ofRs 3 lakh crore for onward lending to MSME sector.

Synergies derived from the three-way amalgamation

Erstwhile Vijaya Bank and Dena Bank amalgamated into Bank of Baroda with effect fromApril 12019 and the amalgamated entity. i.e. Bank of Baroda has completed one year ofunified operations. Over the past year the Bank completed harmonisation of all productsand processes based on the ‘Best of Three' principle and created the optimum productsuite for customers. Bank successfully integrated the payment systems of the erstwhileDena Bank and Vijaya Bank with itself and the Bank continues on implementing initiativesto further harmonise and improve the functioning of the amalgamated entity.

Data integration / migration of the branches and all other applications made goodprogress. The Bank aims to complete data integration of all branches during FY 2021. Withthis the Bank would have successfully completed the entire integration process of theerstwhile banks with Bank of Baroda.

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

Business Performance

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

Resource Mobilisation Credit Expansion and Operating Performance

Particulars 31.03.19* 31.03.20
Deposits 638689.7 945985.4
of which- Domestic Deposits 517966.6 808705.5
International Deposits 120723.2 137278.9


Domestic Deposits 517966.6 808705.5
of which- Current Account Deposits 34327.6 49650.1
Savings Bank Deposits 174076.2 266301.3
CASA Deposits 208403.8 315952.4
Domestic CASA Deposits (%) 40.2 39.1
Advances 468818.7 690120.73
of which- Domestic Advances 370185.0 570340.8
International Advances 98633.8 119780.0
Total Assets 780987.4 1157915.5

The Bank's absolute CASA deposits crossed the Rs 3 lakh crore milestone and reached Rs3.16 lakh crore as of March 312020. The Bank opened 94.70 lakh new CASA accounts duringFY 2020 of which bulk of the eligible accounts were opened through TAB Banking. The Bankintroduced a host of new products and implemented several new initiatives to improve itsprocesses and strengthen the product proposition to meet the enhanced customerexpectations.

New products introduced during FY 2020 include Baroda Platinum Savings account in thevalue segment Baroda Government Bodies SB account - an exclusive product for governmentbodies BSNL/MTNL savings account with inbuilt personal accident insurance cover of Rs 40lakh foreign currency current account for SEZ and for project offices escrow currentaccount for corporates real estate developers and government bodies “StartupIndia” and “Scale-Up India” current account schemes exclusively designed tomeet the requirements of Startups and Mahila Shakti- women's savings account with inbuiltcomplimentary personal accident insurance of Rs 50000/- for first year.

Some of the strategic initiatives taken by the Bank to increase CASA deposits includeintegration with Ministry of Corporate Affairs (MCA) for instant current accountgeneration for new companies which are formed through the MCA portal Memorandum ofUnderstanding (MoU) with Indian Army for salary and pension accounts and acquiringprestigious banking relationship with Mumbai Police for opening current accounts. The Bankalso introduced current account opening through TAB for individual proprietorshipconcerns. The Bank promoted its health insurance linked SB product - BOB Sehat Surakshaand opened over 1.19 lakh accounts under this segment. To bring strong awareness of healthinsurance to the women Bank bundled a complimentary health insurance in its Women SavingsAccount - BOB Mahila Shakti Account.

The Bank also conducted an extensive customer contact programme “Phir EkMulakat” to contact existing customers at their residence or work place to strengthenrelationships and over 3.8 lakh customers were contacted under this programme. Bank openedaccounts of over 1163 schools for implementation of the grants under the ATAL TINKERINGLAB scheme by Government of India.

The Bank offers various depository services like account maintenancedematerialisation settlement of trades through market transfers off-market transfers andinter-depository transfers distribution of non-cash corporate actions and nomination/transmission etc. During the year Bank opened 55300 demat accounts. The Bank is adepository participant of Central Depository Services Ltd (CDSL) as well as NationalSecurities Depository limited (NSDL).

Credit Expansion:

During FY 2020 credit growth increased to Rs 690121 crore as on March 312020 withinwhich domestic advances of the Bank amounted to Rs 570341 crore. The increase indomestic advances was led by retail loans and agriculture loans. Retail loan increased toRs 1 20657 crore led by home and auto loans at Rs 83012 crore and Rs 1 6490 crorerespectively. With this the ratio of retail loans to total domestic loans increased to19.8% during the year. The international loan book grew by 21.4% to Rs 1 19731 crore ason March 312020.

The total assets of the Bank increased to Rs 1 157915 crore as on March 312020.

Operating Performance:

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

Particulars 31.03.19* 31.03.20
Interest Earned 49770.0 75983.7
Interest Expended 31290.3 48532.4
Net Interest Income (NII) 18479.7 27451.3
Other Income 6294.5 10317.3
of which- Fee Income 3576.1 4951.0
Forex Income 693.2 1016.1
Trading Gains 989.5 2750.7
Recovery from PWO 832.0 1531.8
Non-customer interest income 204.0 67.0
Operating Income (NII + Other Income) 24774.2 37768.6
Operating Expenses 11287.9 18077.2
Employee Expenses 5039.1 8769.5
Other Operating Expenses 6248.9 9307.7
Operating Profit 13486.8 19691.4
Provisions 12788.7 21493.5
of which-Provisions for NPAs and Bad debts written off 12192.4 16404.9
Provision for Standard Advances (35.5) 3085.0
Provision for Depreciation on Investment 138.5 987.0
Other Provisions 493.3 (1332.0)
Profit Before Tax 698.2 (1802.1)
Provision for Tax 264.6 (2348.3)
Net Profit 433.5 546.2


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

The interest income of the Bank increased to Rs 75984 crore during FY 2020. The globalyield on advances increased to 7.99% from 7.65% and yield on domestic advances rose to8.82% from 8.67%.

Total interest expenses stood at Rs 48532 crore in FY 2020. The domestic cost ofdeposits stood at 5.39%.The cost of deposits in the international book increased from1.89% to 2.03%. Net Interest Income (NII) for the Bank increased to a level of Rs 27451crore during FY 2020. Global NIM has remained constant at 2.72%.

Other income of the Bank increased to Rs 1 0317 crore on account of increase intreasury gains to Rs 2751 crore. Recovery from written-off accounts was higher at Rs 1532 crore.

Operating expenses increased to Rs 1 8077 crore in FY 2020. Employee cost during theyear was Rs 8770 crore whereas other operating expenses were Rs 9308 crore. As a resultoperating profit of the Bank increased to Rs 1 9691 crore during FY 2020. Totalprovisions (other than tax) and contingencies increased to Rs 21493 crore as provisionsfor NPAs increased to Rs 1 6405 crore in FY 2020. The Bank posted a net profit of Rs 546crore in FY 2020.

Corporate Credit

Corporate credit in the Bank is serviced through 14 Corporate Financial Services (CFS)branches which manage about 77% of the total corporate credit portfolio of the Bank. Thecorporate credit portfolio of the Bank increased to Rs 291543 crore as on March 312020.

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

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

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

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

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

• Supply chain finance including vendor financing dealer financing and receivablefinancing.

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

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

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

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

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

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

• In addition to the above rationalisation of pricing was done to providecompetitive rates to borrowers. This led to improved utilisation and availment of productsand services.

• All large corporate accounts are serviced through specialised corporate creditbranches which has resulted in standardisation of services improved risk management andquick decision making.

Target Market approach: FY 2021

The Bank proposes to set up four Integrated CFS (ICFS) branches across the countryduring FY 2021 for quick processing of corporate proposals. The Bank follows a targetmarket 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 growthdemand-supply outlook cost structure competition financial performance governmentpolicies and investment outlay.

• Sector-wise business plan for target market lending based on exposure capsexisting exposures and further appetite for fresh acquisitions for the current financialyear.

• Precise account planning with structured calling plans for meetings identifyingbusiness opportunities approval and closure.

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

• The Bank focuses on overall yield from the customer rather than interest incomeby offering ancillary services like supply chain finance value chain finance CMSfacility and other retail products.

MSME Credit

The MSME portfolio as on March 312020 stands at Rs 87328 crore. The Bank added 94775new MSME customers to its base in FY 2020. To provide access to working capital to MSMEsat competitive rates on Trade Receivables electronic Discount System (TReDS) the Bankon-boarded itself on all the three TReDS platforms. As on March 31 2020 the TReDSbusiness accounted for Rs 385 crore. The Supply Chain business which aims at addressingthe working capital requirement and liquidity support to the MSMEs has an outstandingbook of Rs 721 crore as on March 312020. It is backed by a fully digitised supply chainfinancing product and has provided a new vehicle for sourcing of MSME customersspecifically vendors and suppliers of anchor corporates.

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

Supporting the Government's efforts under MUDRA scheme on employment generation theBank disbursed Rs 1 0303 crore to the sector thereby achieving the targets set for FY2020. The Bank also extended credit of Rs 2194 crore to SC ST and women entrepreneursunder the Stand-Up India programme since the launch of the scheme. The Bank devised aproduct “Baroda Tankerz Scheme” for financing LPG tankers to SC/ ST borrowersunder Stand-Up India scheme and was ranked first amongst PSBs during FY 2020. Undersupport of the Government's initiative to augment MSME units by speedy sanction of MSMEloans through the ‘PSBloansin59minutes' portal the Bank was ranked first amongst allPSBs in terms of in-principle sanction/ final sanction/ disbursement as on March 312020.

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

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

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

The Bank commissioned a dedicated team for financing commercial vehicles andconstruction and mining equipment for the MSME segment. For this purpose Bank enteredinto a strategic alliance with Tata Motor Finance Ltd. and SREI for capturing new businessin the commercial vehicles segment. Further the Bank on-boarded clients under a newscheme ‘Value Chain Finance' which is specifically designed to address the workingcapital requirements of such MSME customers who are dealing with anchors having maximumturnover of up to Rs 2000 crore.

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

Retail Credit

The retail portfolio of the Bank increased to Rs 1 20657 crore as on March 31 2020.The share of retail loans increased to 19.8% as of March 312019 of domestic advances asagainst 18.3% as on March 312019. This was possible as the Bank constantly strives toprovide seamless credit delivery to customers in a hassle free manner

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

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

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

• Opening of -14- new Specialised Mortgage Stores (SMS) and relocation of -10- SMSacross geography to deliver specialised and faster credit delivery thereby taking thetotal number of SMS to 99 as on March 312020.

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

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

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

• Focused approach on empanelment of digital Direct Selling Agents.

Rural and Agricultural Lending

The Bank has a network of 2934 branches in rural and 2525 branches in semi urbanareas which are leveraged for priority sector and agriculture lending. The Bank'sagriculture advances grew to Rs 87921 crore as on March 312020.

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

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

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

As a part of its microfinance initiatives the Bank has credit linked 56367 SHGs bygranting loans amounting to Rs 1093 crore.

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

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

In order to extend customer outreach Baroda Kisan Pakhwada a fortnight-long farmeroutreach programme was organised across the country from October 12019 to October 152019 and culminated with the celebration of Baroda Kisan Divas on October 16 2019. Duringthis fortnight more than 6 lakh farmers were engaged with the Bank in activeparticipation in various activities and loans amounting to Rs 2229 crore were disbursedin 139893 accounts.

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

Particulars Count
1 No. of Choupals organised 13385
2 No. of participants in Choupals 356056
3 No. of Kisan Melas (Credit Camps)/ Mega Kisan Mela 1079
4 No. of Health Camps (Soil / Animal / Farmer) 745
5 Farmer Meetings (Other than Choupals) 6135
6 Farmers Appreciated 28311
7 Total Farmers Connected 611779

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

Priority Sector Lending

Priority sector advances of the Bank stood at Rs 226336 crore as of March 31 2020.The Bank achieved the mandatory targets under “Small and Marginal Farmers and weakersection advances” segments as on March 312020.

Advances to SC/ST Communities

The outstanding advances to SC/ST communities went up to Rs 1 1106 crore as of March312020. The SC/ST communities accounted for 17.06% share in total advances granted toweaker sections by the Bank.

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

Financial Inclusion (FI)

In order to provide banking services to all sections of the society especially torural semi urban and urban poor at an affordable cost Bank has taken financial inclusionas a social commitment and also an opportunity to tap business through BusinessCorrespondent (BC) model. The Bank has been actively working towards ensuring financialinclusion in the country through its branch and BC network. With the advent of technologyinnovative steps are being taken for serving in unbanked areas. The Bank deployed morethan 18000

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

The Bank took the following initiatives towards promoting financial inclusion:

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

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

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

Performance highlights under financial inclusion during FY 2020

• Basic Saving Bank Deposit (BSBD) accounts increased by 41.20 lakh and depositsincreased by Rs 3758 crore.

• PMJDY accounts increased to 410.62 lakh and PMJDY deposits increased to Rs 14294 crore.

• The Bank's market share as on March 312020 improved to 13.45% for number ofPMJDY accounts and 14.75% for deposits under PMJDY accounts.

• The share of zero balance PMJDY accounts of the Bank were brought down to 7.88%as on March 312020.

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

• Fresh enrolment under PMJJBY for the year was 7.80 lakh and under PMSBY was31.49 lakh.

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

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

Performance of RRBs sponsored by Bank of Baroda

The Bank has sponsored three Regional Rural Banks (RRBs) viz. Baroda Uttar PradeshGramin Bank Baroda Rajasthan Kshetriya Gramin Bank and Baroda Gujarat Gramin Bank. Theaggregate business of these three RRBs rose to Rs 76278 crore as of March 312020. Thethree RRBs together posted a net profit of Rs 1 66 crore during FY 2020. The net worth ofthese RRBs put together improved to Rs 3038 crore as of March 312020.

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

International Operations

The Bank has 101 overseas branches/ offices across 21 countries comprising of 35overseas branches 1 Mobile Unit and 9 Electronic Banking Service Units in 13 countries55 branches of the Bank's eight overseas subsidiaries and one International Banking Unitin GIFT City (SEZ) Gandhinagar Gujarat India which deals exclusively in foreigncurrency. 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 Zambiawith 30 branches. During the year Bank's wholly owned subsidiary at Botswana viz. Bank ofBaroda (Botswana) Ltd. opened one new branch at Palapye.

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

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

As of March 31 2020 the Bank's total business from international branches was Rs257010 crore and constituted 15.71% of the overall business. Total deposits were at Rs 137279 crore while net advances were Rs 1 19731 crore.

Treasury Operations

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

The treasury is responsible for managing the funds position of the Bank and ensuringsafety liquidity and optimal yield on these funds. It maintains Statutory ReserveRequirements and invests in corporate bonds commercial papers equity venture capitalmutual funds etc. as a part of the fund management operations.

The total size of the Bank's domestic investment book as of March 31 2020 stood at Rs265016 crore. The share of Statutory Liquidity Ratio (SLR) securities in totalinvestments was 83.46%. The percentage of SLR securities (unencumbered) to NDTL at March312020 was at 22.58%.

The Bank demonstrated its capabilities in effectively dealing with extreme adversecircumstances in the market. The Bank has been able to capitalise on the opportunitiesoffered by yield movements. The Bank managed its portfolio efficiently and maintainedaverage yields on investment for FY 2020 at 8.43% (including profit on sale). During FY2020 the profit on sale of investment and foreign exchange earnings were Rs 2751 croreand Rs 746 crore respectively.

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

Government Business

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

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

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

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

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

Wealth Management

Wealth management services remain an area of focus for the Bank and provide investmentand insurance services to customers. With the amalgamation customers of erstwhile DenaBank and Vijaya Bank were also able to benefit from the value added services and productsoffered by the Bank through its corporate partners. The Bank strives to be a one- stopshop for all financial needs of its customers. The Bank's flagship programme ‘BarodaRadiance' continues to cater to the requirements of High Net worth Individuals through adedicated structure of relationship managers. The Bank aims at providing best-in-classsolutions and services to its customers and is developing digital solutions to do so. Someof the initiatives taken during the year are:

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

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

3) Issuance of 97096 life insurance policies.

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

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

Stressed Asset Management

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

Particulars 31.03.19* 31.03.20
Gross NPA 48233 69381
Gross NPA (%) 9.61 9.40
Net NPA 15609 21577
Net NPA (%) 3.33 3.13
Additions to NPAs 13614 23315
Recovery/ Upgradations 8759 7972
Write offs including TWOs 13102 15806
Recoveries in written off accounts 832 1532
Provision Coverage Ratio (including TWO) (%) 78.68 81.33
Provision Coverage Ratio (excluding TWO) (%) 67.64 68.90

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

Asset Category 31.03.19* 31.03.20
Standard advances 453473 668715
Gross NPA 48233 69381
Total Gross Advances 501706 738096
Gross NPAs comprising
Sub-standard 9014 14311
Doubtful 32398 37005
Loss 6821 18065
Total Gross NPA 48233 69381

In order to address the large number of small NPA accounts sector wise special OTSschemes were launched by the Bank. For MSME sector the Bank launched special OTS scheme“MSME OTS Scheme” to provide opportunity for repayment of dues. For farmers indistress a special OTS scheme was launched during FY 2020. The Bank continued with itsearlier OTS scheme Lakshya II (Lakshya Agriculture Retail and MSME). The Bank has maderecoveries and upgraded NPA accounts amounting to Rs.1296 crore under these schemes. Anapplication called ‘One Time Settlement Tracking System' was implemented whereincustomers could initiate settlement proceedings online. The Bank also set up a legalwar-room for real-time tracking of recovery proceedings and to aid accelerated decisionmaking wherein high value suit-filed accounts are monitored.

The Bank set up a solution provider cell to augment recoveries to ensure minimalslippages and to provide resolution strategies for large NPA accounts i.e. exposure aboveRs 30 crores. For timely collections from retail and SME customers a - 500 - member callcentre with multilingual support was set up and supported by feet-on-street staff to driveon-ground collections. A special taskforce of about 2300 officials of the Bank wasdeployed for recovery of small NPA and potential NPA accounts. Additionally BCs areincentivised for collections in crop loans.

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

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

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

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

• Liaising with Official Liquidators organising recovery camps across branchesclose monitoring of stressed accounts and recovery agents at all levels and monthlye-auctioning especially in DRT suit filed NPA accounts.

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

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

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

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

Digital Transformation

The Bank is committed to digitisation and continuously strives to migrate transactionsto digital channels which leads to better customer experience. The major focus of digitalbanking is to make Bank's products available to customers through digital and alternatedelivery channels such as BHIM Baroda Pay Baroda M-connect Plus Baroda Connect debitcard BHIM Aadhaar Multi-Function Kiosk Self Service Passbook Printers TAB BankingInternet Payment Gateway (IPG) BBPS etc.

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

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

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

Mobile Banking: The Bank added a number of services such as FASTagrecharge updation of email ID linking and fund transfer to SSA insurance andinvestments (PMJJBY/PMSBY/APY) access to Baroda Wealth reset of internet bankingpassword extension of Baroda Kisan through mobile application for export credit andlocker facility. On an overall basis 44 new features and services were added during theyear.

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

• Debit cards: The Bank has an active card base of 5.40 crore as on31.03.2020. To increase e-commerce / POS transactions and to make Bank's debit card as thepreferred card of choice for the customer the Bank tied up with various merchants forproviding lucrative offers to debit card customers. The Bank has also enabled RuPay debitcards for use in Bhutan for its RuPay debit card holders.

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

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

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

• ATM banking: User-friendly graphic screens and easy to follow instructionsin a language of customer's choice makes ATM Banking a smooth experience. ATMs areenriched with features such as green pin generation NEFT bill payment etc. The Banksuccessfully migrated all scheduled ATMs of erstwhile Dena and Vijaya Bank to Bank ofBaroda switch. Bank has 13193 ATMs including cash recyclers as on March 312020.

• Self Service Pass Book Printer (SSPBP): A fully automated machine having theability to auto flip auto align and update the customer passbook without any manualintervention makes printing of passbooks convenient for all strata of customers. The Bankhas 4012 SSPBPs. The Bank enabled QR code based SSPBPs at four locations and is the firstin the industry to implement QR code based fully automatic machines.

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

Record digitisation: Digitisation of records is an ambitious project ofthe Bank under which around 25 crore documents covering more than -3500- branches werescanned. As a result around 2 lakh sq.ft of space was unlocked in the identified branchesof the Bank. After successful implementation of the records digitisation in the Bank'sidentified branches and offices it is being implemented in identified branches andoffices of eDena and eVijaya Bank.

Analytics Centre of Excellence (ACoE)

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

Analytics and machine learning has been at the core of the Bank's revenue programmesover the last two years. The Bank's cross-sell and up-sell opportunities in retailbanking MSME and wealth management segments are driven by over 15 machine learning andpredictive models. One of the key tenets of the ACoE programme was driving the culture ofdata driven decision making - self-service campaign tracking dashboards provide near realtime updates on different campaigns. This helps the Bank to effectively cross-sell itsproducts and services.

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

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

Information Technology (IT)

The Bank is constantly evolving its products systems and structure to meet the growingaspirations of the customers. Digitisation requires continuous upgradation of the ITinfrastructure. Some of the measures taken in the year are:

Extension of TAB based products to:

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

• Current accounts which offer an end-to-end digitised simplified on-boardingjourney for customers to open individual sole-proprietor and non-individual currentaccount.

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

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

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

Bank is in process of implementing model builder to build predictive models aligningactions and outcomes through analytics to maximise business performance to buildcompetitive advantage. The solution delivers unique capabilities for managing complexdecisions across the enterprise resulting in immediate value and allowing high impactdecisions to be made with confidence.

The Bank is compliant with all the RBI mandates i.e. changes of old MICR IFSC by March312020 related to amalgamation of eVijaya and eDena Bank. In addition to the above theBank migrated all the payment applications i.e ATM debit card IMPS NEFT RTGS ECSmandates internet banking and mobile banking. Bank has completed the movement to thenewly built best in class Data Centre to ensure uninterrupted service delivery to itscustomers. Bank's Data Centre and DR operations are certified to ISO27001 standard whichis a set of international best practices in the field of information security and providesassurance to all the stakeholders.

Cyber Security

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

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

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

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

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

• Monitoring of phishing sites rogue mobile apps and social media sites formalicious activities/contents and the same are taken down on detection throughantiphishing and brand protection services.

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

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

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

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

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


The Bank has been in the forefront of the digital revolution and has been the first PSUbank to have a dedicated Fintech vertical since 2016. It has enabled the Bank to developpartnerships with fintechs launch new products and reinvent business processes. The Bankhas about 50 partnerships with diverse fintech startups across lending wealth paymentsand technology as of March 312020.

Major achievements and initiatives during the year:

• The Bank continued to maintain its dominant position with a market share of 16%on TReDS platform. The cumulative throughput crossed Rs 2000 crore as on March 312020.

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

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

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

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

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


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

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

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

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

With the above strategic direction Bank ramped up the digital marketing activitiesincluding social media and series of campaigns were conducted for customers for buildingawareness creating brand engagement and business generation.

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

Social Media Channels Statistics (No of likes / Followers) as on 31.03.2020
Facebook Likes 1445000 +
Twitter Followers 95000 +
YouTube Subscribers 44000 +
LinkedIn Followers 77000 +
Instagram Followers 110000 +

As the Bank continues to build modern day digital marketing ecosystem and create anequilibrium between the physical and digital marketing the objective is to be anaspirational brand which engages empowers and educates digital audience by providingrelevant content and fulfill banking needs by constantly analysing measuring andimproving experience response and capabilities.

Customer Service

The Bank is sensitive and responsive towards customer needs and believes thattechnology products processes and human resources must be leveraged for deliveringsuperior banking experience to customers.

Bank secured second place amongst PSBs in the ‘EASE of Banking Index' a strategicinitiative undertaken by Government of India to imbibe best practices and provide superiorcustomer experiences in PSBs.

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

The Bank ensured that frequently used functionalities by customers were made availablethrough digital channels and contact centre. The 24*7 contact centre has the capability toconnect with customers in their preferred language. Apart from Hindi and English thelanguage capability was increased to nine regional languages. The contact centre handled1.51 crore customer calls during the year (approx. 85% of the calls were answered in 15seconds).

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

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

The Bank implemented a new Queue Management System in 500 branches. Branches alsounderwent a facelift and were designed to enhance customer experience through betterambience increased seating area with special focus for senior citizens and thedifferently abled customers.

Bank is focused on building the ‘Client First' culture and constantly engages withits customer to understand their needs redesign experiences (product design systems andprocesses) and enhance the governance model to deliver superior experiences. Feedback onquality of customer service at branches is obtained through the branch level customerservice committee meetings that are held monthly in which customers from various crosssections of the society including senior citizens and pensioners are invited. Servicelevels across the network of branches are monitored through mystery shopping/serviceaudits as well.

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

The Bank has appointed an Internal Ombudsman which is a forum made available tocustomers for grievance redressal prior to approaching the Banking Ombudsman. Allcomplaints which are rejected or partially accepted by the Bank are systematicallyescalated to the Internal Ombudsman for review. This enhances the customer confidence inthe Bank's systems and expedites the process of grievance redressal thus making it moretransparent.

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

Shared Services

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

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

Functions such as trade and forex operations account management services mortgagebased lending operations agriculture loan processing credit card operations digitalbanking operations (reconciliations / vendor management / ATM monitoring / IPG) andpension services have been centralised. Further centralisation of activities such asmigration of collection services CMS operations international operations Aadharenrolment centres establishing login shops at SMS and MSME lending operations would helpin releasing even more capacity for sales and customer service.

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

Branch Network

As of March 312020 the branch network of the Bank is as under:


31.03.20 (Amalgamated)

Domestic Branches Number of Branches % Share in Total Number of Branches % Share in Total
Metro 1203 21.66% 2163 22.81%
Urban 959 17.27% 1860 19.62%
Semi-urban 1546 27.84% 2525 26.63%
Rural 1845 33.23% 2934 30.94%
Total 5553 100 9482 100
Overseas Branches/ Offices (including branches of overseas subsidiaries) 100 101

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

Currency Chests

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

Risk Governance and Internal Controls

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

Risk Management Governance

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

The risk appetite framework of the Bank apart from setting the minimum CRAR reflectingthe Bank's risk appetite at the aggregate level also defines risk appetite for Pillar 1risks viz. credit risk market risk for the trading book and operational risk and Pillar2 risk namely Liquidity Risk Reputation Risk etc.

Three Lines of Defence

To implement effective risk management governance and address the full spectrum ofpossible risks the responsibilities among different units of the Bank are defined in sucha way that there are three lines of defence which are independent from each other. TheBank uses the industry-standard three lines of defence model to articulateaccountabilities and responsibilities for managing risk. It supports the embedding ofeffective risk management throughout the organisation.

i. First Line of Defence is the business verticals and operating units where risks aretaken. In the course of conducting business activities staff in the business verticalsand operating units hold frontline positions and undertake the primary responsibility forthe proper identification assessment management and reporting of risk exposures on anongoing basis having regard to the Bank's risk appetite and the limits/caps thereinpolicies procedures and controls.

ii. Second Line of Defence is provided by risk management function and compliancefunctions which operate and function independently of each other and of the first line ofdefence. It is primarily responsible for overseeing the measurement and reporting of riskwhile monitoring and remaining compliant with applicable laws regulations corporategovernance rules and internal policies.

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

Risk Management and Compliance

Risk is an integral part of the banking business and the Bank aims to achieve anappropriate trade-off between risk and returns. To ensure sustainable and consistentgrowth the Bank has developed a sound risk management framework so that the risks assumedby the Bank are properly assessed and monitored. The Bank undertakes business activitieswithin the defined risk appetite limits and policies approved by the Board of Directors ofthe Bank. Specific committees of the Board have been constituted to facilitate focusedoversight on various risks. The Board has also constituted a Risk Management Committee ofthe Board which oversees the different type of risks. It is supported by on-boardingspecialists in the area. Policies approved from time to time by the Board of Directors orCommittees of the Board form the governing framework for each type of risk.

The Bank has a comprehensive Internal Capital Adequacy Assessment Process and stresstest policy. The Pillar 2 risks such as Liquidity Risk Interest Rate Risk ConcentrationRisk Business and Strategic Risk Reputation Risk Pension Obligation Risk etc. andCapital Adequacy under both normal and stressed conditions are assessed as per the extantpolicies. A brief outline of the mechanism for identifying evaluating and managingvarious risks within the Bank is as follows:

Enterprise Risk Management

The diversity of business lines requires a comprehensive Enterprise Risk Managementapproach to promote an enterprise-wide strong risk management culture to help in the earlyidentification assessment measurement aggregation and management of all risks and tofacilitate capital allocation among various business lines. All risks are approved withinthe overarching risk appetite framework and are adequately hedged.

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

Credit Risk

Credit risk is managed through a Board approved framework that sets out policiesprocedures and reporting which is inline with international best practices. Adequateattention is given to the independence of the risk evaluators and business functions forestablishing a sound credit culture and a well- structured credit approval process. Creditrisk measurement models are validated by independent model validators for theirdiscriminatory power accuracy and stability.

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

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

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

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

Market Risk

Market Risk implies the risk of loss of earnings or economic value due to adversechanges in market rates or prices of trading portfolio. The change in economic value ofdifferent market products is largely a function of change in factors such as interestrates exchange rates economic growth and business confidence. The Bank has well definedpolicies to control and monitor its treasury functions which undertake market riskpositions.

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

Asset Liability Management

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

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

Operational Risk

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

The Bank implemented a web based Operational Risk Management System SAS EnterpriseGovernance Risk and Compliance (SAS EGRC) for systemic and integrated management ofOperational Risk.

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

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

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

Climate Risk

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

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

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

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

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

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

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

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

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

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


Compliance function in the Bank is one of the key elements in its corporate governancestructure. The compliance function in the Bank is adequately enabled and made sufficientlyindependent. The compliance function ensures strict observance of all statutory provisionscontained in various legislations such as Banking Regulation Act Reserve Bank of IndiaAct Foreign Exchange Management Act and Prevention of Money Laundering Act etc. as wellas ensures observance of other regulatory guidelines issued from time to time. It alsoensures adherence to the Bank's internal policies and fair practices code. The Bank hasput in place a robust compliance system including a well-documented compliance policyoutlining the compliance philosophy of the Bank role and set up of the compliancedepartment composition of its staff and their specific responsibilities.

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

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

Under the EASE Reforms version 2.0 Bank retained the 2nd position across all PSBs inQ1 (June 2019) Q2 (September 2019) and Q3 (December 2019).

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

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

KYC/ AML Compliance

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

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

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

Internal Audit

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

CIAD operates through eighteen zonal internal audit divisions to carry out internalaudit of branches/offices as per the periodicity decided by the RBIA policy. All branchesof the Bank are covered under RBIA. Of the 9482 branches audited during FY 2020 8481branches (89.44%) were in Low Risk 829 branches (8.74%) were in Medium Risk 122 branches(1.29%) were in High Risk 4 branches (0.04%) were in Very High Risk.

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

The audit execution under automated environment commenced for Credit Audit (from01.09.2019) and Universal Branch (from 01.02.2020) during the FY 2020 and are stabilisingpost which whole gamut of audit approach will undergo a change with extensive use oftechnology analytics sampling and advanced audit methodology. Internal audit processesthus will be revamped aided by technology.


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

The Bank's vigilance administration comprises of three segments:

a) Preventive Vigilance

b) Punitive Vigilance

c) Surveillance and Detection

While punitive actions are certainly important preventive and surveillance measuresare deemed to be more important as these are likely to be more helpful in reducingoccurrence of punitive actions.

Punitive and surveillance functions are undertaken as per well-defined regulations. Onthe one hand the Bank ensures that officers and employees at all levels resorting tounfair means indulging in wilful and malafide practices lacking in integrity are notallowed to go unpunished while on the other hand the Bank also ensures that bonafidedecisions taken in normal course of business with objectivity and required prudence areprotected if the decision is proven wrong in hindsight.

Human Resources

The Bank has a rich talent pool with over 84000+ employees on its rolls. The Bankcontinuously undertakes multiples initiatives for strengthening and developing its humanresources viz. recruitment addressing training needs of employees employee engagementand capability building.

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

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

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

Manpower Planning and Recruitment

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

The Bank recruited 1728 officers and 2430 business associates through directrecruitment during FY 2020. The Bank also hired specialised staff with expertise in nicheand key focus areas to strengthen its capabilities and strength in different domain areas.

Baroda GEMS “Growth and Empowerment Management System”

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

Baroda Anubhuti Programme

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

Under the banner of Baroda Anubhuti the Bank has also been conducting annual sportsday on the 4th Saturday in November every year. Inter zonal sports and culturaltournaments in various disciplines were conducted during the last year which saw veryenthusiastic participation from various employees and helped build team bonding andengagement levels amongst employees.

Wellness and Fitness Drives

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

Bank's Creche facility

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

Learning and Development

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

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

‘We Lead' - Comprehensive Leadership Development Programme

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

With a view to maintain continuity and spirit of the WeLead Leadership DevelopmentProgramme in Phase I of its roll out the Bank embarked upon WeLead II in FY2020 whichassumes greater significance in the context of the amalgamation. Hence an importantcomponent of the WeLead II was cultural assimilation. The programme also focuses on makingthe integration successful realising synergies maintaining the pace of growth andbecoming future ready.

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

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

Career Progression

Concerted efforts have been taken by Bank for fostering career progression ofemployees for rewarding them for their performance and motivating them. Horizontalmovement of officers across different functions and overseas placements are encouraged toprovide employees with wider exposure.

HR policies and Development of Systems

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

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

Thrust on Diversity

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

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

Reservation Cell

An exclusive Reservation Cell has been functioning to monitor the reservation and otherenabling provisions for SC/ ST/PWD/Ex-Serviceman and OBC employees. Executives in the rankof General Manager are appointed as Chief Liaison Officers for SC/ST/PWD and ex-servicemanemployees and OBC employees respectively who ensure compliance of various guidelinespertaining to them.

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

Caste category wise count as on 31.03.20

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

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

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

• Pre-Promotion Training for SC/ST candidates

• Workshop on Reservation Policy

• Training programme on disciplinary proceedings

Premises Re-engineering

In an effort to improve the ambience of customer touch points all identified branchesacross the country have been refurbished with special emphasis on maintaining a uniformlook and feel in all branches. Remaining branches are also being refurbished on similarline. Bank is undertaking the work of construction of Apex Academy Ahmedabad. It isproposed to have Platinum rated state-of-the-art training Centre including classroomsresidential accommodation and recreational services.

As the Government of India initiated Swachhata Hi Sewa Abhiyaan Bank took steps toparticipate in the event and undertook cleanliness drive inside and outside Bank premisesthroughout India.

Implementation of Official Language (OL) Policy

Use of Hindi and other Indian Languages for promoting business as well as providingdigital products to the customers is a significant characteristic of the Bank's languagepolicy. This approach has been well appreciated by Government of India and regulatoryauthorities from time to time.

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

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

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

Corporate Social Responsibility (CSR)

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

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

• Baroda Swarojgar Vikas Sansthan Trust (BSVS Trust) which runs RSETI centresimparts skill development training programmes to youth of rural and semi urban areas forgenerating self employment.

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

The Bank has -64- RSETI centres in 10 states/UTs across the country. These centres haveconducted 17922 training programmes and imparted training to 503145 youth out of which330213 have already secured employment or have setup their own ventures. Out of 64 RSETIcentres 53 RSETI centres have been graded as “AA/A” (outstanding) based on theoverall performance/functioning of the RSETIs.

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

Domestic Subsidiaries and Joint Ventures BOB Financial Solutions Ltd.

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

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

BFSL continued to issue pre-approved credit cards to Bank's customers under thetripartite partnership between the Bank BFSL and Trans Union CIBIL. BFSL used a networkof more than 2000 sales representatives to cover the top 2500 bank branches for focusedcredit card acquisition from both preapproved as well as walk-in customers.

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

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

BOB Capital Markets Ltd.

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

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

Baroda Global Shared Services Ltd.

Bank's wholly owned captive “Baroda Global Shared Services” established in FY2017 operates from 4 locations (Mumbai Gandhinagar Gift City Bengaluru and Hyderabad)and has more than 1400+ full time equivalents (FTEs) in nonvoice (transaction processing)and 850 FTEs in voice (Call Centre with multilingual capabilities).

Functions such as trade and forex operations account management services mortgagebased lending operations agriculture loan processing credit card operations digitalbanking operations (reconciliations / vendor management / ATM monitoring / IPG) andpension services have been centralised. Further centralisation of activities such asmigration of collection services CMS operations international operations Aadharenrolment centres establishing login shops at SMS and MSME lending operations iscontinuing.

Barodasun Technologies Ltd.

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

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

The Nainital Bank Ltd.

The Nainital Bank Limited (NBL) originally promoted by Late Bharat Ratna Pandit GovindBallabh 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 atNainital and has operations in five states namely Uttarakhand Uttar Pradesh Delhi andNCR Haryana and Rajasthan. NBL has 141 branches as on March 312020.

The total business of NBL increased to Rs 1 1797 crore on March 31 2020 from Rs 10931 crore as on March 31 2019. The Bank incurred a net loss of Rs 59.61 crore in FY2020 against a net profit of Rs 26.89 crore during the previous year on account ofenhanced provisioning requirements even though the operating profit of the Bank increasedfrom '109.30 crore in FY 2019 to '114.27 crore in FY 2020.

Baroda Asset Management India Ltd.

Baroda Asset Management India Limited (Baroda AMC) is a wholly owned subsidiary of theBank with effect from September 28 2018. Baroda AMC acts as the investment manager toBaroda Mutual Fund (Baroda MF) a mutual fund registered with the Securities and ExchangeBoard of India. The average assets under management (AUM) of Baroda MF for FY 2020 were Rs1 1204 crore a decline of 9% over the previous year due to fall in AUM in debt segment.The equity AUM within the overall AUM grew by 30% over previous year. Baroda AMCcontinues to expand its third-party distribution network with particular focus on IFAs.The company launched a few new funds during the year.

The Bank and BNP Paribas Asset Management Asia Ltd (BNP Asia) have signed bindingagreements on October 11 2019 to merge their Asset Management and Trustee Companies inIndia. Baroda Trustee India Private Ltd is the dedicated trustee company for the mutualfunds managed by Baroda Asset Management India Limited.

IndiaFirst Life Insurance Company Ltd.

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

In FY 2020 IndiaFirst Life became the fastest growing Life Insurance Company inIndividual New Business APE (Annual Premium Equivalent) with 25% YoY growth as compared toLife Insurance YoY growth of 6%. The company is currently ranked 12th in Individual NewBusiness APE (Annual Premium Equivalent) among the private players with assets undermanagement (AUM) at Rs 1 4723 crore as on March 312020.

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

India Infradebt Ltd.

India lnfradebt Limited (Infradebt) is the first Infrastructure Debt Fund (IDF) - NBFC.It was sponsored by Bank of Baroda along with ICICI Bank Limited. Citicorp Finance (India)Limited and LIC of India are its other shareholders. It has been rated AAA by CRISIL ICRAand India Ratings since its inception. It finances the relatively safe completedinfrastructure projects which have achieved one year of commercial operations. FurtherInfradebt enjoys 100% income-tax exemption. The synergy with the Bank arises from itsfocus on lending to strong stable infrastructure projects - mainly NHAI road projects andrenewable energy projects. The company has delivered healthy growth in its first full sixyears of operations ending FY 2020. Its loan book as on March 31 2020 was Rs 1 1565crore and net profit for FY 2020 was Rs 259 crore (as per Indian GAAP).

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

Entity Owned funds Total assets Net profit Offices Staff
BOB Financial Solutions Ltd 196.36 572.17 (31.53) 38 561
BOB Capital Markets Ltd. 152.98 160.71 (0.80) 1 104
BarodaSun Technologies Limited 4.55 4.45 (0.09) 1 6
Baroda Global Shared Services Ltd. 16.03 17.19 4.00 5 1019
The Nainital Bank Ltd. 556.01 8440.39 (68.07) 4 971
Baroda Asset Management India Ltd. 65.01 80.02 0.85 5 76
Baroda Trustee India Pvt. Ltd. 0.10 0.15 0.01 1 0
IndiaFirst Life Insurance Company Ltd. 716.93 15273.30 (97.42) 29 2772
India Infradebt Limited 1866.82 12289.03 259.05 1 21

Awards and Accolades

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

Dividend Distribution Policy

RBI Vide notification RBI/2019-20/218 DOR.BPBC. No.64/21.02.067/2019-20 dated April 172020 has advised banks due to environment of heightened uncertainty caused by COVID-19to conserve capital retain their capacity support the economy and absorb losses.Accordingly Bank has not declared dividend pay outs from the profits pertaining to thefinancial year ended March 312020.The policy is given in this Annual Report and is alsoavailable on the Bank's website at bank-25-04-2019-17042020.pdf.

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


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

Prof. Biju Varkkey was appointed as Part Time Non Official Director w.e.f. October21 2019 by the Central Government u/s 9 (3) (h) and 9(3-A) of The Banking CompaniesAcquisition and Transfer of Undertakings) Act 1970 for a period of -1- year or untilfurther orders whichever is earlier.

Shri Sanjiv Chadha was appointed as Managing Director and CEO w.e.f. January 202020 by the Central Government u/s 9 (3) (a) of The Banking Companies Acquisition andTransfer of Undertakings) Act 1970 for a period of -3- years or until further orderswhichever is earlier.

Shri Amit Agrawal was nominated as Government Nominee Director w.e.f. January 252020 by the Central Government u/s 9 (3) (b) of The Banking Companies Acquisition andTransfer of Undertakings) Act 1970 to hold the post until further orders.


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

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

Smt. Papia Sengupta ceased to be Executive Director w.e.f. October 12019 uponattaining the age of superannuation on 30th September 2019.

Shri Debasish Panda ceased to be Government Nominee Director w.e.f. January 252020 and Shri Amit Agrawal was appointed in his place.

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

Board Evaluation

Bank is following Government of India guidelines dated August 30 2018 for PSBGovernance Reforms - Enhancing governance through improved effectiveness of non-officialdirectors.

Auditors' Compliance Certificate on Corporate Governance:

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

Business Responsibility Report

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

Directors' Responsibility Statement

The Directors confirm that in the preparation of the annual accounts for the FinancialYear ended March 312020:

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

b) The accounting policies framed in accordance with the guidelines of RBI werefollowed and the directors had selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Bank at the end of the financialyear and of the profit and loss of the Bank for that period;

c) The directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of applicable laws to the Bank forsafeguarding the assets of the Bank and for preventing and detecting fraud and otherirregularities;

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

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

Explanation: For the purposes of this clause the term “internal financialcontrols” means the policies and procedures adopted by the Bank for ensuring theorderly and efficient conduct of its business including adherence to Bank's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information;

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


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

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

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

For and on behalf of the Board of Directors

Sanjiv Chadha

Managing Director and CEO