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Bank of Baroda.

BSE: 532134 Sector: Financials
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OPEN 87.30
VOLUME 2368934
52-Week high 108.00
52-Week low 53.05
P/E 13.84
Mkt Cap.(Rs cr) 45,792
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Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 87.30
CLOSE 88.10
VOLUME 2368934
52-Week high 108.00
52-Week low 53.05
P/E 13.84
Mkt Cap.(Rs cr) 45,792
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bank of Baroda. (BANKBARODA) - Director Report

Company director report

Your Directors have pleasure in presenting the One Hundred and Thirteenth Annual Reportof the Bank with the audited Balance Sheet Profit & Loss Account and the Report onBusiness and Operations for the year ended March 31 2021 (FY 2021).

Financial Performance

Rs crore

Particulars Year ended March 31 2020 Year ended March 31 2021
Deposits 945984.4 966996.9
of which - International Deposits 137278.9 108583.8
Domestic Deposits 808705.5 858413.1
of which - Current Account 49650.1 61609.0
Savings Bank Deposits 266301.3 306418.5
CASA Deposits 315951.4 368027.6
Domestic CASA to Domestic 39.07 42.87
Deposits (%)
Advances 690120.7 706300.5
of which - Domestic Advances 570340.8 605615.8
International Advances 119780.0 100684.7
Total Assets 1157915.5 1155364.8
Net Interest Income (NII) 27451.3 28809.0
Other Income 10317.3 12364.4
of which - Trading Gains 2750.7 3376.0
NII + Other Income 37768.6 41173.5
Operating Expenses 18872.4 20543.7
Operating Profit 18896.2 20629.8
Provisions 20698.3 15073.8
of which - Provisions for NPAs 16404.9 12407.7
and Bad debts written off
Profit Before Tax -1802.1 5556.0
Provision for Tax -2348.3 4727.0
Net Profit 546.2 829.0
Statutory Reserve 136.5 207.2
Capital Reserve 822.3 676.9
Revenue and Other Reserves
I) General Reserve -560.3 -341.8
II) Special Reserve u/s 36 (I) 180.0 286.6
(viii) of the Income Tax Act
III) Investment Reserve Account -41.6 0.0
IV) Statutory Reserve (Foreign) 9.3 0.1
Proposed Dividend 0.0 0.0
Rs crore
Key Performance Indicators FY 2020 FY 2021
Average Cost of Funds (%) 5.11 4.11
Average Yield on Funds (%) 7.55 6.62
Average Interest Earning Assets 1007058.7 1064844.0
Average Interest Bearing Liabilities 949179.9 1014761.9
Net Interest Margin (%) 2.73 2.71
Cost-Income Ratio (%) 49.97 49.90
Return on Average Assets (ROAA) (%) 0.06 0.07
Return on Equity (%) 1.23 1.50
Book Value per Share (Rs) 96.22 106.72
Basic EPS (Rs) 1.36 1.78

Total deposits of the Bank increased to Rs 966997 crore as on March 31 2021. Netadvances increased to Rs 706301 crore led by domestic retail loans agriculture and MSMEloans. The net interest margin (NIM) was at 2.71% in FY 2021.

Operating profit for the Bank rose to Rs 20630 crore in FY 2021 from Rs 18896 crorein FY 2020 an increase of 9.17%. Total provisions (other than tax) and contingenciesdeclined by 27.17% from Rs 20698 crore in FY 2020 to Rs 15074 crore in FY 2021.Provisions for Non- Performing Assets (NPA) also declined to Rs 12408 crore in FY 2021from Rs 16405 crore in FY 2020. The Bank posted a net profit of` 829 crore an increaseof 51.83% over the previous financial

Capital Adequacy Ratio (CAR)

Ratios in %

Particulars As on 31.03.2020 As on 31.03.2021
Capital Adequacy Ratio –
Basel III 13.30 14.99
CET-I 9.44 10.94
Tier – I 10.71 12.67
Tier – II 2.59 2.32

The Capital Adequacy Ratio (CAR) of the Bank increased from 13.30% as on March 31 2020to 14.99% as on March 31 2021. CET-1 ratio also increased from 9.44% to 10.94% during thesame period. The consolidated group capital adequacy ratio stood at 15.74%.

During FY 2021 Bank raised capital through the Qualified Institutional Placement route(QIP) amounting to Rs 4500 crore. Bank issued and allotted 55.08 crore equity shares toeligible qualified institutional buyers at the issue price of ` 81.70 per equityshare.

The Bank issued Additional Tier I (AT-I) capital bonds of ` 3735 crore duringFY 2021.

The Bank's net worth as of March 31 2021 was Rs 55191 crore comprising of paid-upequity capital of Rs 1036 crore and reserves of Rs 54155 crore (excluding revaluationreserves foreign currency translation reserves and other intangible assets). The bookvalue of the share (Face Value Rs 2) was ` 106.72 as on March 31 2021.

Provisions towards Retirement and other

During FY 2021 the Bank made provision towards contribution to gratuity (` 669 crore)pension funds (` 2188 crore) leave encashment additional retirement benefits and otherbenefits (` 13 crore). Total provisions under these categories amounted to Rs 2870 croreduring FY 2021.


Bank is not eligible to pay dividend for the financial year ended March 31 2021 onaccount of not meeting the eligibility criteria stipulated by Reserve Bank of India (RBI)for this purpose.

Management Discussion and Analysis

Global Economy

The world went through an unprecedented health crisis in the form of a pandemic in2020. Almost all global economies announced a lockdown starting in early 2020. The worldentered into a lockdown. This resulted in a contraction in global GDP by 3.3% in 2020(Source: IMF). The global contraction was led by Advanced Economies (AEs) where GDPcontracted by 4.7%. Within AEs the highest decline was seen in UK at 9.9% followed byEuro Area at 6.6% and US at 3.5%. All AEs announced fiscal and monetary stimulus tosupport growth. As a result fiscal deficit in US is estimated to have increased to 14.9%of GDP in 2020 from 4.6% of GDP in 2019. UK and Euro Area too followed expansionary fiscalpolicies. Expansionary fiscal policy went hand-in-hand with monetary accommodation whichincluded reduction in interest rates asset purchase programmes and provision of liquidityto different segments of the economy to mitigate the economic impact of the pandemic.

GDP of Emerging and Developing Economies is estimated to have contracted by 2.2% led byLatin America with a decline of 7% in 2020. Asia seems to have been relatively betterplaced with Emerging and Developing Asian economies reporting a decline of 1% in 2020. Thedecline in global GDP led to 8.5% reduction in world trade volumes in 2020 as restrictionsdisrupted supply chains. Global commodity prices also fell sharply in 2020 led by oil.However the underlying economic situation seems to have changed dramatically withavailability of vaccines and gradual opening of lockdown restrictions. The monetary andfiscal stimulus given by governments and central banks seems to have led to resurgence indemand in particular for goods. More importantly there has been a significant progressin terms of vaccinations being able to reduce the spread of pandemic.

IMF expects global growth to rebound to 6% in 2021. While AEs are expected to grow by5.1% in 2021 Emerging and Developing Economies are estimated to grow by 6.7%. Within AEsgrowth is driven by US at 6.4% followed by Euro Area at 4.4%. Within Emerging economiesAsian economies are slated to grow by 8.6% followed by Latin America at 4.6%. The suddenrebound in world demand led to sharp increase in global commodity prices and long-termgrowth outlook. Global growth even in 2022 is estimated to maintain above average momentumat 4.4%.

Indian Economy

In-line with the decline seen in the world economy India's GDP is estimated to havecontracted by 7.3% in FY 2021 following a 4.0% increase in FY 2020. The contraction is aresult of nationwide lockdown imposed at the beginning of the financial year to controlthe spread of COVID-19 pandemic.

The decline is led by 10.8% drop in investment demand from an increase of 5.4% in FY2020. Even consumption is expected to have fallen by 9.1% after reporting an increase of5.5% in FY 2020. The bright spot in the year was the agriculture sector and which did notsee any disruption. The disruption to the Indian and global economy resulted in India'sindustrial production falling by 8.7% during FY 2021. Manufacturing and mining sectordeclined sharply by 9.8% and 7.8% respectively. Electricity output reported a much betterpicture with a decline of only 0.5% during FY 2021. The lockdowns and restrictions haveimpacted the services sector as well. Services sector is estimated to report a decline ofmore than 8% in FY 2021. The maximum impact has been felt in contact intensive servicessuch as travel tourism and education. In order to mitigate the impact of the pandemicthe Government presented a pro-growth Budget with a large outlay on capital spending. TheCentral Government not only made direct cash transfers to the marginal households butalso increased outlay on food subsidies and employment programmes. This led to increase infiscal deficit to 9.3% of GDP in FY 2021 from 4.6% of GDP in FY 2020.

The restrictions imposed to contain the pandemic resulted in disruptions in both demandand supply side. As a result retail inflation edged up to 6.2% in FY 2021 from 4.8% in FY2020. The increase in inflation was led by higher food prices. Food inflation increased by9.8% in the first half of the financial year compared with only 5.8% increase seen insecond half of the financial year. Even non-food inflation or core inflation increased onthe back of higher retail fuel prices. With reduction in spread of infection more andmore restrictions were lifted from the middle of last financial year. However COVID-19infections increased towards the end of FY 2020. Instead of a national lockdown stategovernments have imposed local lockdowns to contain the spread of the virus. The same hasled to a decline in economic momentum seen towards the end of last financial year. RBI hasrevised its growth forecast to 9.5% in FY 2022. With global economy reviving demand forIndia's software services and merchandise goods is likely to do well. The Government isramping up health infrastructure and working towards vaccinating maximum percentage ofpopulation in the shortest possible time.

Developments in Indian Banking

Credit growth of Scheduled Commercial Banks (SCBs) declined to 5.6% as of March 2021from 6.1% as of March 2020. The economic impact of the pandemic explains the muted creditoff-take. With agriculture sector remaining relatively free of any disruption creditoff-take to agriculture increased by 12.3% as of March 2021. On the other hand creditoff-take to industry remained muted. Within this credit off-take to medium industryreported an increase of 28.8% as of March 2021. This can be explained by credit guaranteegiven by Government of India for incremental lending to MSMEs to tide over the economicimpact of the pandemic. Credit off-take to services sector and consumer sector too saw adecline in momentum. While consumer loans did increase by 10.2% as of March 2021 thegrowth was lower than last year when this segment witnessed an increase of 15%. Relativelymuted demand for bank credit is also attributable to corporate institutions tapping thebond market to meet the need for their funds. In fact in FY 2021 corporate institutionsincluding financial institutions were able to raise` 7.7 lakh crore from bond marketcompared with Rs 6.7 lakh crore in FY 2020.

In order to mitigate the impact of the pandemic on the economy RBI reduced repo rateby 115bps between March 2020 and May 2020. The reverse repo rate was reduced by an evensharper 155bps. RBI also injected liquidity in the form of targeted long term repurchaseoperations (TLTROs) open market operations (OMOs) and reduction in cash reserve ratio(CRR). In addition to this RBI advised banks to announce moratorium for customersimpacted by COVID-19. It also gave banks flexibility to extend increasing drawing power.It also provided credit lines to banks to on-lend to National Housing Bank (NHB) NationalBank for Agriculture and Rural Development (NABARD) etc. The Kamath Committee allowedrestructuring for twenty-six stressed sectors impacted by pandemic under certainconditions. The measures taken by RBI ensured an orderly conduct of bond and currencymarkets. Despite a large increase in fiscal deficit and ensuing government borrowingyields remained in a tight range. The benchmark 10-year yield traded in a range of 5.8% to6.5% during the financial year.

INR gained 3.3% in FY 2021 after depreciating by 8.5% in FY 2020. Transmission of lowerinterest rates into the economy improved with weighted average lending rate for freshrupee loans for SCBs falling by 79bps and weighted average term deposit rate of SCBs fellby 100bps.

In order to mitigate the impact of the pandemic Indian Government announced a numberof economic measures and reforms. In a major push towards privatisation Governmentannounced privatisation of two public sector banks and an insurance company along withearlier announcement of strategic sale of Air India and Bharat Petroleum CorporationLimited. It also announced creation of an asset reconstruction and management company todispose of bad debts. National Bank for Financing Infrastructure and Development wasproposed to be set up as the principal development financial institution (DFI) forinfrastructure financing.

With the second wave hitting the country various state governments have announcedlocal containment measures. Economic activity has also been impacted due to localrestrictions. RBI announced resolution framework for MSMEs small businesses andindividual loans with exposure up to ` 50 crore. In addition it gave ample liquidity tobanks and small finance banks for onward lending to healthcare rural and informalsectors.


The Bank achieved a major milestone in the amalgamation journey and concluded the ITintegration of erstwhile Dena Bank and erstwhile Vijaya Bank. The IT integration of 1770erstwhile Dena Bank branches and 2128 erstwhile Vijaya Bank branches to Bank's corebanking solution (CBS) heralded the completion of the amalgamation journey. The entire ITintegration exercise was carried out with a customer centric approach while ensuringbusiness continuity and minimum disruption to services. Post IT integration customershave access to Bank's feature rich digital channels and wide network of 8214 branches inIndia and abroad.

The centralisation of back-office processes such as trade finance back office (TFBO)CASA account opening through retail liabilities back office (RLBO) account openingthrough working TAB Banking and loan capital loans processing using loanorigination andby processing application software (LLPS) have led to reduction in serviceturnaround time (TAT).

EASE 2.0

In Government of India's EASE 2.0 index Bank secured the “First” positionamong all Public Sector Banks. As per the index significant progress is themes‘Responsible Banking' ‘Governance and HR' ‘PSBs as Udyamimitra forMSMEs' ‘Credit off-take' ‘Financial Inclusion and Digitisation' and‘Customer Responsiveness'.

Project BOB-NOWW

A collective aspiration to shape the future Bank of Baroda

The Bank embarked on a new transformation journey BOB-NOWW with a commitment to createvalue for all stakeholders. The word NOWW represents the Bank's aspiration to shape andembrace ‘New Operating model and Ways of Working'.

The objective is to build an industry-first operating model through new ways of workingand a reimagined retail network which will unlock growth potential across businesses. Itwill also encompass adoption of digitisation at every level so as to optimise costs andincrease productivity. Initiatives currently underway to reshape the Bank for the futureare:

Unlocking business potential: The Bank is enhancing its business offerings in themarketplace across revenue lines with a special focus on corporate MSME internationaland wealth verticals. The Bank is looking at offering a full-stack corporate bankingsolution to its customers. The Bank launched initiatives such as corporate fee boostercampaign sales war room and revamping the trade finance and supply chain financeplatforms. The Bank is reshaping its wealth management strategy as well to retainactivate and deepen relationships with existing customers. The Bank is hiring therequisite talent to scale up its wealth management offering.

Reimagined retail distribution network: The Bank is following the motto of‘BOB Everywhere' by expanding its network including Business Correspondents (BC)and services to a larger pool of customers and bigger geographical spread. The Bank isalso introducing new-age compact and digital branch formats to offer seamless customerexperience across the country. This will also enable easy accessibility of bankingservices through multiple formats. The new formats and bigger network will enable the Bankto deepen its presence in rural areas.

Digital led experience and Mobile first:A critical part of BOB-NOWW is to increasedigitisation of banking processes and services. For this the Bank is building anorganisation structure and operating model which includes cross-functional agile squadswith representatives from critical departments of the Bank to accelerate the pace at whichnew digital banking services and journeys are rolled out. The Bank plans to bolster itsmobile banking app by revamping existing customer journeys to offer best-in-class andlatest banking services. The mobile platform will also give option to consumers to payinsurance premium and invest in mutual funds. In addition the Bank is looking atdigitising customer interface at branch level through self-service kiosks thus enablingfaster and straight-through processing for transactions.

New ways of working: in the Bank across six The Bank is exploring “Work fromAnywhere” for its employees in select roles. This will enable a better work-lifebalance and improve employee productivity. The Bank has already implemented hybrid workingmodel on pilot basis and learnings from the pilot will be incorporated into the programmedesign. A Bank-wide campaign called “Let's Simplify” was launched to crowdsource ideas and close to 2500 ideas were received and the most impactful ones are underconsideration for implementation.

Business Performance

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

Operating Performance

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

Rs crore

Particulars Year ended March 31 2020 Year ended March 31 2021
Interest Earned 75983.7 70495.1
Interest Expended 48532.4 41686.0
Net Interest Income (NII) 27451.3 28809.0
Other Income 10317.3 12364.4
Trading Gains 2750.7 3376.0
Operating Income (NII + Other Income) 37768.6 41173.5
Operating Expenses 18872.4 20543.7
Employee Expenses 9564.7 11445.5
Other Operating Expenses 9307.7 9098.1
Operating Profit 18896.2 20629.8
Provisions 20698.3 15073.8
of which - Provisions for NPAs and Bad debts written off 16404.9 12407.7
Provision for Standard
3085.5 2158.0
Provision for Depreciation on Investment 986.7 309.9
Other Provisions 221.2 198.2
Profit Before Tax -1802.1 5556.0
Provision for Tax -2348.3 4727.0
Net Profit 546.2 829.0
Key Performance Indicators FY 2020 FY 2021
Cost of Deposits - Global (%) 4.98 4.01
Cost of Deposits - Domestic (%) 5.39 4.44
Cost of Deposits - International (%) 2.03 0.95
Yield on Advances – Global (%) 7.99 6.98
Yield on Advances (Domestic) (%) 8.82 7.83
Yield on Advances (International) (%) 3.77 2.48
Net Interest Margin – Global (%) 2.73 2.71
Net Interest Margin – Domestic (%) 2.85 2.79
Net Interest Margin – International (%) 1.34 1.29
Cost-Income Ratio (%) 49.97 49.90
Return on Average Assets (ROAA) (%) 0.06 0.07
Return on Equity (%) 1.23 1.50

The interest income of the Bank contracted to Rs 70495 crore during FY 2021. Globalyield on advances fell to 6.98% from 7.99% and yield on domestic advances decreased to7.83% from 8.82%.

Total interest expenses also declined to Rs 41686 crore in FY 2021. The cost ofdeposits in domestic book fell to 4.44% and to 0.95% in the international book. NetInterest Income (NII) for the Bank increased to Rs 28809 crore during FY 2021. Global NIMremained stable at 2.71%.

Other income of the Bank increased to Rs 12364 crore on account of increase intreasury gains to Rs 3376 crore. Recovery from written-off accounts was higher at Rs2985 crore.

Operating expenses increased to Rs 20544 crore in FY 2021 on account of employeeexpenses. Employee costs during the year was Rs 11446 crore whereas other operatingexpenses were Rs 9098 crore. Hence operating profit of the Bank increased to Rs 20630crore during FY 2021. Total provisions (other than tax) and contingencies decreased to `15074 crore. The Bank posted a net profit of Rs 829 crore in FY 2021.

During the year the Bank exercised the option to transition to the lower tax rateregime i.e. 25.17% permitted under Section 115 BAA of the Income Tax Act 1961 asintroduced by the Taxation Law (Amendment) Act 2019 as against existing tax rate of34.95%. Accordingly the Bank re-measured the Deferred Tax Asset and Liabilities at March31 2020. The impact of these changes is a one-time charge of Rs 3837 crore to Profit andLoss account made during the year.

Resource Mobilisation

Rs crore

Particulars As on 31.03.2020 As on 31.03.2021
Deposits 945984.4 966996.9
of which - International Deposits 137278.9 108583.8
Domestic Deposits 808705.5 858413.1
of which- Current Account
Deposits 49650.1 61609.0
Savings Bank Deposits 266301.3 306418.5
CASA Deposits 315951.4 368027.6
Domestic CASA to Domestic
Deposits (%) 39.07 42.87
Advances 690120.7 706300.5
of which- Domestic Advances 570340.8 605615.8
International Advances 119780.0 100684.7
Total Assets 1157915.5 1155364.8

Bank's domestic CASA deposits increased by 16.48% and rose to Rs 368028 crore as onMarch 31 2021. Domestic CASA ratio of the Bank was at 42.87% as of March 31 2021 anincrease of 3.80% compared to March 31 2020 level of 39.07%. Current deposits registeredgrowth of 24.09% and reached Rs 61609 crore while savings bank deposits crossed ` 3 lakhcrore with an increase of 15.06%.

During the year Bank opened 1.24 crore new CASA accounts. Within this the thrust wasfor opening accounts in paperless mode using Tablets (TAB). Bank also launched atailor-made salary account product Baroda Defence Salary Package for serving and retireddefence forces personnel. This customised product offers in-built comprehensive personalaccident insurance upto ` 50 lakh (on duty) and air accident insurance cover upto` 1 crore. In addition Bank successfully serviced more than 16000 doorstep requestsduring the year under the PSB Alliance Doorstep Banking Service.

Under Baroda Government Employees' Salary Account Scheme close to 30000 salaryaccounts were opened and ` 397 crore was mobilised with an average balance of Rs 1.41 lakhper account. The integration with Ministry of Corporate Affairs (MCA) portal for onlinecurrent account opening of new companies incorporated through the platform brought in morethan 7000 current accounts of companies for the Bank with an average balance of Rs 2.50lakh.

The Bank introduced SB account linked insurance products in partnership with TATA AIGMax Bupa and Star Health Insurance Company and opened 1.73 lakh insurance linked SBaccounts during FY 2021. Bank successfully issued 2.55 lakh credit cards during FY 2021compared to 2.47 lakh credit cards during FY 2020. Bank initiated lead generation modulefor acquiring customers through digital and social media channels.

Baroda Cash Management Services

The Bank's cash management business Baroda DigiNext provides a wide range ofomni-channel digital solutions for customers for management of cash flowsand liquidity.Baroda DigiNext Cash Management continued to rapidly expand its footprint acquiring arecord 1300+ new large corporate and government relationships in FY 2021. Over 3500large customers of the Bank utilised the cash management services for over 5 croretransactions during the year.

The Bank's cash management solutions provide valuable information on real-time basis ofall receipts - electronic cheques and cash deposits at all its branches. The solution isused in key Government initiatives like Pradhan Mantri Bhartiya Jan Aushadhi Pariyojanadigitisation of land records and Agricultural Produce Market Committee (APMC) collections.Bank of Baroda is amongst the only two major banks that are fully integrated withIntegrated Financial Management and Human Resource Management System (IFHRMS) a keyinitiative for management of State Government treasury.

Credit Expansion

Outstanding net credit of the Bank increased to Rs 706301 crore as on March 31 2021within which domestic advances were Rs 605616 crore. The increase in domestic advanceswas led by retail MSME and agriculture sector. Organic retail loans increased to Rs120256 crore led by auto and personal loans. With this the ratio of retail loans tototal domestic loans increased to 20.68% during the year. The international loan bookstood at Rs 100685 crore as on March 31 2021. The Bank is focussed on adopting‘Digital First operating model' to deliver enhanced customer experience. Towards thisobjective the Bank established a dedicated vertical known as ‘Digital LendingDepartment' responsible for developing digital journey for Bank's lending productsparticularly in Retail and MSME segments. As part of roll-out retail products such aspersonal loans car loans and home loans are being digitised. The MSME loan renewal forloans upto Rs 25 lakh was launched digitally. The Bank integrated Pradhan Mantri StreetVendor's Atmanirbhar Nidhi scheme (PM SVANidhi) portal for on-boarding the street vendorsand providing them with Unified Payments Interface (UPI) Quick Response (QR) codes.

The total assets of the Bank increased to Rs 1155365 crore as on March 31 2021.

Corporate Credit

Corporate credit in the Bank is serviced through 15 Corporate Financial Services (CFS)branches which manage about 73% of the total corporate credit portfolio of the Bank. Thecorporate credit portfolio of the Bank increased to Rs 291615 crore as on March 312021.

With revamp in approach towards corporate credit delivery the risk profile of theportfolio further improved during FY 2021 as observed in the rating distribution ofdomestic credit portfolio as below:

Credit Rating Distribution* As on 31.03.2020 As on 31.03.2021
A and above 62% 63%
BBB 13% 11%
Below BBB 13% 9%
Unrated 11% 16%

*External rating distribution of advances above Rs 5 crore.

Total portfolio comprising of A and above in FY 2021 was 63% as against 62% in theprevious year. To provide relief to the borrowers impacted by COVID-19 Bank introducedLiberalised Working Capital Assessment and extended support to borrowers with fund-basedbalance of Rs 4931 crore. The Bank also launched Baroda COVID Emergency Credit Line(BCECL) under which overall ` 2417 crore was sanctioned and Rs 1398 crore wasdisbursed as of March 31 2021. Under the Government's Guaranteed Emergency Credit LineBank sanctioned Rs 849 crore and disbursed Rs 382 crore during FY 2021. Bank offered fundsto corporates and NBFCs under the TLTRO scheme introduced by RBI. Funds worth Rs 6519crore were sanctioned and the entire amount was deployed as on March 31 2021. Under thePartial Credit Guarantee Scheme Rs 3078 crore was lent to NBFCs.

MSME Credit

The MSME portfolio as on March 31 2021 stood at Rs 96200 crore. The Bank added 2.72lakh new MSME customers in FY 2021. The Bank increased the network of dedicated SMEprocessing centres from 27 to 71 SME Loan Factories (SMELF). In addition 15 new SMEbranches were opened to cater to customers as one-stop solution for all financialneeds which include personal loans deposits forex related services and financialsolutions to promoters. For the geographical areas not covered by these loan factories andSME branches the Bank established specialised 49 SME cells to process loan proposalsunder COVID relief package with focussed approach along with monitoring of SME accounts.

Bank implemented various schemes to provide liquidity support to MSMEs affected byCOVID-19 pandemic:

• Under Emergency Credit Line Guarantee Scheme (ECLGS) Bank sanctioned Rs 8725crore and disbursed ` 7765 crore as on March 31 2021. In addition Bank providedtemporary credit lines to MSME customers to meet any liquidity mismatch. Under thisscheme Bank sanctioned Rs 3013 crore and disbursed Rs 983 crore.

• Additionally Bank sanctioned loans to 799 MSME borrowers under Credit GuaranteeScheme for subordinate debt. Bank also offered pre-approved loan for current accountholders based on underlying cash flows to meet any liquidity requirement due to COVID -19.

• Bank also revived working capital requirement of MSME borrowers based upon needbecause of pandemic. Bank also provided interest subvention for 105793 Shishu customersunder Micro Units Development and Refinance Agency (MUDRA).

Bank was the first to launch PM SVANidhi with end-to-end digital solution. To supportMSME enterprises with an online facility for submitting restructuring proposal Bankentered into Memorandum of Understanding (MoU) arrangement with SIDBI for a web-basedplatform named ‘Asset Restructuring Module for MSMEs (ARM-MSME)'. A MoU arrangementwith Andhra Pradesh State Civil Supplies Corporation Ltd was also entered into to provideMUDRA loans to unemployed youth for purchasing commercial vehicles to be used in publicdelivery system. Under this MoU Bank disbursed ` 476 crore to 9100 beneficiaries.

Bank has a dedicated cell for Commercial Vehicle and Construction Equipment Financewith portfolio of Rs 915 crore as on March 31 2021. Bank tied up with major OriginalEquipment Manufacturers (OEM) to enhance the business in this segment. During the yearBank entered into MoU arrangement with Daimler India Commercial Vehicles Pvt. Ltd. (BharatBenz).

Bank has a specialised vertical for supply chain business for providing liquiditysupport to MSMEs. Bank's supply chain business is a digitised supply chain solutionproviding real time alerts reports and end-to-end automated reconciliation.

The supply chain finance portfolio stood at Rs 1430 crore as on March 31 2021.

Retail Credit

The retail assets of the Bank increased to Rs 132565 crore as on March 31 2021 fromRs 120822 crore as on March 31 2020 thereby posting an overall growth of 9.72%. Organicretail loans (excluding portfolio purchase) increased to ` 120256 crore anincrease of 14.35% over the previous year. Retail assets formed 20.68% of domesticadvances as of March 31 2021.

The key highlights of retail business in FY 2021 include:

• Bank's mortgage-based loan book (home mortgage and rent receivables) stood atRs 99630 crore as on March 31 2021.

• Within retail segment personal home and education loans posted an increase of27.21% 11.10% and 9.06% respectively.

• Auto loans for the Bank increased at 27.79% against industry growth of 9.50%.

• Bank opened 27 new Specialised Mortgage Stores (SMS) with a total of 126 SMSs ason March 31 2021. These stores are located all across the country to deliver specialisedand faster mortgage-based retail credit delivery.

• Under the Digital Lending platform in-principle approval for retail loanproducts such as home loan personal loan and auto loan is now being done online. Bank isoffering end-to-end online micro personal loans upto ` 50000 to its liabililtycustomers.

New retail asset products such as Personal Loan under COVID-19 Scheme for individualexisting borrowers Baroda Personal Loan to Government Employees Salary Account customersand pre-approved loan for liability customers were launched during the year.

Rural and Agricultural Lending

Bank has a network of 2852 branches in rural and 2090 branches in semi urban areaswhich are leveraged for priority sector and agriculture lending. The Bank's agricultureadvances increased to Rs 99543 crore as on March 31 2021. Bank is the convener of StateLevel Bankers' Committee (SLBC) in 3 states i.e. Uttar Pradesh Gujarat and Rajasthan andUnion Territory Level Bankers' Committee (UTLBC) in 1 Union Territory i.e. New UnionTerritory of Dadra and Nagar Haveli and Daman and Diu. Bank also shoulders the Lead Bankresponsibility in 67 districts across the country.

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 (tractor loans) horticulture loanswarehouse receipt financing financing to Self Help Groups (SHGs) food andagro-processing gold loans and flagship product Kisan Credit Card (KCC). Bank enteredinto MoU with tractor manufacturers such as Gromax Agri Equipment Limited Eicher MotorsTractors and Farm Equipment Limited (TAFE) and Mahindra and Mahindra Tractors Ltd. forincreasing the tractor loan portfolio.

During the year the Bank issued 3.91 lakh new KCC and devised new scheme for bringingfarmers engaged in animal husbandry and fisheries activities under the ambit of KCCmechanism. As a part of its micro finance initiatives Bank has credit linked 77722 SHGsby granting loans amounting to ` 1671 crore during FY 2021.

The Bank's unique annual farmer outreach programme “Baroda Kisan Pakhwada”was organised across the country from October 1 2020 to October 15 2020. The focus wasto reach out to maximum farmers virtually through digital platform in view of the COVIDscenario. A total of 13811 activities/ events were organised during the “BarodaKisan Pakhwada” and 3.57 lakh farmers participated.

The Bank also introduced Infrastructure Development Schemes such as AgricultureInfrastructure Fund (AIF) Animal Husbandry Infrastructure Development Fund Scheme(AHIDF) PM Formalisation of Micro Food Processing Enterprises (PMFME) Pradhan MantriKisan Urja Suraksha evem Utthan Mahabhiyan Scheme (PM Kusum) Pradhan Mantri MatsyaSampada Yojana Scheme (PMMSY) and compressed biogas to encourage growth of agricultureinfrastructure projects.

The vertical rolled out a number of initiatives to offer credit support to SHGs FarmerProducer Organisations (FPO) Baroda Kisan Credit Card (BKCC) and investment creditborrowers. Overall amount sanctioned under different schemes were Rs 2378 crore undervarious COVID-19 schemes in FY 2021.

Priority Sector Lending

Priority sector advances of the Bank grew at 10.14% during FY 2021 from Rs 226336crore as on March 31 2020 to ` 249285 crore as of March 31 2021. Bank achievedthe mandatory targets under all the categories of Priority Sector Lending segments as onMarch 31 2021.

Advances to SC/ST Communities

The outstanding advances to Scheduled Caste/ Scheduled Tribe (SC/ST) communities wentup to Rs 12633 crore as of March 31 2021. The SC/ST communities accounted for 18.68%share in total advances granted to weaker 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.

Gold Loans

Bank's gold loan portfolio increased to Rs 23593 crore as on March 31 2021 from Rs17393 crore in the previous year an increase of 35.64%. Within gold loans agriculturegold loans grew at 32.64% in FY 2021 to Rs 22492 crore. Retail gold loans more thandoubled from Rs 436 crore as on March 31 2020 to ` 1101 crore as on March 31 2021. Theincrease is led by Gold Loan Shoppes which increased from 185 to 984 during the sameperiod.

Share of gold loans in agriculture loans increased from 19.13% in FY 2020 to 22.30% inFY 2021. Average gold loan ticket size increased from Rs 1.05 lakh to Rs 1.36 lakh. Theincrease was spread across the country with share of geographies other than South Indianow at 22.65% in FY 2021 compared with 18.96 % in the previous year. Credit quality of theportfolio remains healthy with GNPA ratio of only 0.19% as of March 31 2021.

Financial Inclusion (FI)

In order to provide universal banking services to all sections of the societyespecially to rural semi urban and urban poor at an affordable cost Bank has takenfinancial inclusion as a social commitment and also an opportunity to tap business throughBC model. The Bank has been actively working towards ensuring financial inclusion in thecountry through its branch and BC network. With advent of technology innovative steps arebeing taken for serving in unbanked areas. Bank expanded its BC network by additional5200 BCs to 23320 BCs as on March 31 2021 to cater to rural semi urban and urban areasacross 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.

• Availability of services such as initiation of request for SMS subscriptioninitiation of email statement and debit card hot-listing at BC point. Aadhaar look-upfacility and Aadhaar OTP based authentication of BC agent during transactions. Bilingualconsent for Aadhaar seeding and instant pop-up for micro insurance for enrolment at BCpoint.

Performance highlights under financial inclusion during

FY 2021

• Basic Saving Bank Deposit (BSBD) accounts increased by 78.13 lakh (15.26%) anddeposits increased by ` 4791 crore (25.58%).

• Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts increased by 83.34 lakh (20.30%)and PMJDY deposits increased by Rs 4340 crore (30.36%).

• The Bank's share in comparison with PSBs stood at 14.79% for PMJDY accounts and16.47% for deposits under PMJDY accounts.

• The share of zero balance PMJDY accounts of the Bank reduced to 5.30% as onMarch 31 2021 from 7.88% as on March 31 2020

• Enrolment in micro insurance during the year increased by 48 lakh and was 2.60crore as on March 31 2021.

Performance of RRBs sponsored by Bank of Baroda

The Bank sponsored three Regional Rural Banks (RRBs) namely Baroda Uttar Pradesh GraminBank Baroda Rajasthan Kshetriya Gramin Bank and Baroda Gujarat Gramin Bank. The aggregatebusiness of these three RRBs rose to ` 123579 crore as on March 31 2021 from Rs76278 crore as of March 31 2020. The three RRBs together posted a net profit of` 322crore during FY 2021. The net worth of these RRBs put together improved to Rs 4289 croreas of March 31 2021.

In terms of Government of India notification no. F. No. 07/08/2017-RRB (Uttar PradeshIII) dated November 26 2019 amalgamation of Baroda Uttar Pradesh Gramin Bank (BUPGB)Kashi Gomti Samyut Gramin Bank (KGSGB) and Purvanchal Bank (PB) sponsored by Bank ofBaroda Union Bank of India and State Bank of India respectively was made effective onApril 1 2020 and new entity namely Baroda U. P. Bank as transferee bank startedfunctioning from the same date with its head office at Gorakhpur. The Bank has 1983branches across the state.

International Operations

The Bank has 96 overseas branches/offices across 19 countries. Out of this 44 overseasbranches/offices (including 9 EBSUs in UAE 1 Mobile Banking Unit in Mauritius and 1International Banking Unit in GIFT City Gandhinagar Gujarat India) belong to the Bankand 52 branches are part of the Bank's 7 overseas subsidiaries. In addition the Bank hasone Joint Venture viz. India International Bank (Malaysia) Bhd. in Malaysia and oneassociate bank viz. Indo Zambia Bank Ltd. in Zambia with 30 branches.

The Bank has presence in the world's major financial centres of New York LondonSingapore and Dubai. In the international arena Bank pursues a strategy of driving growthand value by meeting the international banking requirements of Indian corporates; cateringto India linked cross-border trade flows for Indian and locally firms and being thepreferred Bank for (NRI)/ Persons of Indian Origin (PIO).

In overseas centres substantial progress was made in IT upgradation for end-to-endbusiness solution with a focus on digitisation and centralisation to improveproductivity and customer experience.

The Bank has strategically undertaken rationalisation of its overseas presence based ona comprehensive evaluation framework. As part of this exercise during the year wholesalebranch in China was closed Sohar branch was merged with Greater Muttrah branch in Omanand the entire stake in wholly owned overseas subsidiary at Trinidad and Tobago viz. Bankof Baroda (Trinidad and Tobago) Ltd was divested by the way of sale to Ansa Merchant BankLimited. The Bank is continuously consolidating and re-organising its internationaloperations in-line with the new global environment and focussed on rebalancing theportfolio with a view to manage risks shed low-yield assets and increase profitability.

As of March 31 2021 the Bank's total business from international branches was Rs209269 crore and constituted 12.51% of the global business. Total deposits were at `108584 crore while net advances were Rs 100685 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 such as foreign exchangeinterest rates fixed income money market derivatives equity currency and interestrate futures and other alternate asset classes. The Bank offers various services likeinterest rate swaps currency swaps currency options and forward contracts throughauthorised branches dealing in foreign exchange across India. Treasury maintains theregulatory requirements of CRR and Statutory Liquidity Ratio (SLR) and manages thesurplus/ deficit funds. Treasury borrows/invests in money market and capital marketinstruments as part of fund management operations. The total size of the Bank's domesticinvestment book as of March 31 2021 stood at Rs 251708 crore. The share of SLRsecurities in total investments was 81.10%. The percentage of SLR securities(unencumbered) to Net Demand and Time Liabilities (NDTL) as of March 31 2021 was at20.77%. The Bank capitalised on the opportunities offered by yield movements. The Bankmanaged its portfolio efficiently and maintained average yields on investment for FY 2021at 7.69% (including profit on sale). During FY 2021 the profit on sale of investment andforeign exchange earnings were ` 3326 crore and Rs 658 crore respectively.

Various contingency measures were undertaken to ensure uninterrupted companies orbusiness operations during the lockdown Non-Resident Indian period caused by the pandemic.In addition to a Business Continuity Plan (BCP) setup of an alternate site in Mumbairemote access was enabled for staff thus covering all functions of front and back officeof treasury. Hence the entire treasury operations were run successfully and efficientlywith these setups.

Government Business

Government Business forms an important part of the business strategy of the Bank. Itcontributes significantly to low cost deposits and fee based income. It caters to thebanking requirements of Central/State Government and PSUs across India. The Bank isauthorised to collect direct taxes through its designated branches and is an accreditedbanker to the Ministry of Health and Family Welfare and Ministry of Legal Affairs. TheBank ensures implementation/promotion of various small savings schemes and social securityschemes launched by various departments of Ministry of Finance Government of India. TheBank partners with various departments at Central and State levels in developinge-solutions in line with the digital initiatives of the Government of India. During theyear the Bank signed MoU for defence salary package with the Indian Navy and the IndianCoast Guard. The MoU with Indian Army was renewed with added features in Baroda DefenceSalary Package. The Bank also canvassed the prestigious account of Shri Ram JanmabhoomiTeerth Kshetra.

During FY 2021 the commendable performance of the Bank in implementation of the PublicFinancial Management System (PFMS) scheme was appreciated by the Ministry of Finance.Further the Bank also qualified in various campaigns launched by Pension Fund Regulatoryand Development Authority (PFRDA) for canvassing Atal Pension Yojana.

Wealth Management

With the seamless integration of erstwhile Dena and Vijaya Bank branches Bank'scustomer base for distribution of wealth products has seen a large increase. The wealthmanagement distribution platform is segregated into retail distribution (cross-sell) andRadiance channel (a niche segment for High Net Worth Individuals) with the objective ofdeveloping a comprehensive distribution network across the branches catering to more than14 crore customers. The underlying tenet of revamping this business model is to be‘future ready' to leverage growth opportunities and ride on digital transformationsand scale up fee income. This business model envisages delivering investment and insuranceproducts through various touch points like branches mobile and net banking to reach outto last-mile customer across geographies.

Further relationship manager-based business model Radiance was revamped by makingthis product offering more competitive as per industry benchmark and some of thedevelopments are:

• Wealth professionals have been on-boarded with requisite skill set to offerbouquet of investment and insurance products to the customers.

• Digital back-end processes have been strengthened by integrating wealth businessplatform with Registrar and Transfer Agents (RTAs) and availability of current value ofmutual fund investments on mobile and net banking.

• The Bank offered various health insurance products including COVID-19 policiesto provide basic health cover to the customers at the bottom of the pyramid at competitivepricing through insurance partners.

• Investment and insurance products were made available to the defence personnelas one of product offerings under salary accounts.

• Customer Relationship Management (CRM) tool is used effectively to attend to allcustomer complaints on priority and capture the business opportunities.

Stressed Asset Management

The Bank believes that continuous day-to-day monitoring is the first step towardsreduction in non-performing loans and in ensuring good recovery. For this the Bankundertook various steps and formulated strategies to augment recoveries and reduceslippages. The Bank has a ‘Stressed Assets Management Vertical' to monitor all NPAaccounts. For improved monitoring and recovery of NPA accounts five Stressed AssetsBranches (SAM) were set up and all accounts under National Company Law Tribunal (NCLT)were transferred to these specialised branches. Further 16 Stressed Assets RecoveryBranches (SARB Branch) at zonal level were established to handle NPA accounts other thanNCLT with outstanding balance above ` 5 crore.

The movement of NPAs during the last two years is as under:

Rs crore

Particulars FY 2020 FY 2021
Gross NPA 69381 66671
Gross NPA (%) 9.40 8.87
Net NPA 21577 21800
Net NPA (%) 3.13 3.09
Additions to NPAs 23315 20005
Recovery/ Upgradations 7942 7290
Write offs including TWOs 15806 14878
Recoveries in write off accounts 1532 2985
Provisional Coverage Ratio 81.33 81.80
(including TWO) (%)
Provisional Coverage Ratio 68.90 67.30
(excluding TWO) (%)

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

Rs crore

Asset Category FY 2020 FY 2021
Standard Advances 668715 684919
Gross NPA 69381 66671
Total Gross Advances 738096 751590
Gross NPAs comprising
Sub-standard 14311 15056
Doubtful 37005 35527
Loss 18065 16088
Total Gross NPA 69381 66671

In order to address the large number of small NPA accounts Bank continued with itsexisting special One-Time Settlement (OTS) scheme “Lakshya-II - MSME Retail andAgriculture” for settlement of NPAs in these segments. The Bank recovered andupgraded NPA accounts amounting to Rs 694 crore under these schemes. A new e-auctionplatform eBkray was used for sale of properties under Securitisation and Reconstructionof Financial Assets and Enforcement of Security Interest Act (SARFAESI). RBI announcedmeasures under Regulatory Package for COVID-19 vide its circular dated March 27 2020April 17 2020 and May 23 2020. Under these guidelines moratorium was offered toexisting borrowers. In accordance with RBI Guidelines dated April 17 2020 the Bank wasrequired to make provision not less than 10% of the outstanding advances in respect ofborrower accounts where asset classification benefit was granted. The Bank recognisedadequate provision for COVID-19 amounting to Rs 811 crore during the quarter ended March31 2020 and further provision of Rs 1065 crore during the quarter ended June 30 2020and the amount of residual provision of Rs 1309 crore is written back/ adjusted as onMarch 31 2021 in line with RBI guidelines.

In respect of working capital facilities under the above moratorium period Bank hadconverted the accumulated interest for this moratorium period up to August 31 2020 into afunded interest term loan which was repayable by March 2021 as per RBI guidelines. TheBank implemented restructuring under Resolution framework 1.0 - Resolution of COVID-19related stress in 7861 accounts with aggregate exposure of Rs 3774 crore as per RBIcircular dated August 6 2020. The Bank extended RBI's One-Time Restructuring facility toMSMEs under which 125906 borrowers were supported with MSME Asset Restructuring facilitywith overall amount of Rs 9039 crore. Bank has an automated early warning system toidentify the stress at the earlier stage so as to take timely remedial measures to addressthe stress and has a robust collection mechanism.

Digital Banking products

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. The key instruments in digital banking are Mobile banking BHIM BarodaPay Baroda M-connect Plus Baroda Connect Debit Cards Prepaid Cards BHIM Aadhaar ATMand Cash Recycler machines Self Service Passbook Printers(SSPBP) TAB Banking InternetPayment Gateway (IPG) Bharat Bill Payment Services (BBPS) Baroda FASTag Bharat QRPoint of Sale (POS) etc.

Mobile Banking: The Bank added 40 new features and services during theyear to its mobile banking application such as pre-approved Micro Personal Loan UPIfacility passbook debit card management opening of Public Provident Fund (PPF) accountpositive pay confirmation for inward cheques spend analyser mini-statement withoutlogin enabling/disabling contactless payment mode interactive customer feedback RealTime Gross Settlement (RTGS) payment mode for other bank transfers loan against depositsdeposit calculator applications for MUDRA and MSME loans etc. In addition to the abovedaily active users increased 2.84 times from 11 lakh in April 2020 to 31 lakh in

March 2021. In addition financial transactions recorded an increase of 44% whilenon-financial transactions registered an increase of 96%.

ATM: User-friendly graphic screens and easy to follow instructionsin a language of customer's choice makes using the Bank's ATMs a smooth experience. ATMsare enriched with features such as green pin generation National Electronic FundTransfer (NEFT) bill payment etc. The Bank successfully completed ATM GL wise project for9578 ATMs. Bank has 11633 ATMs including cash recyclers as on March 31 2021.

Debit cards: The Bank has an active card base of 6.54 crore as on March31 2021 an increase of 21%. To increase e-commerce / POS transactions and to make Bank'sdebit card as the preferred card of choice for the customer the Bank tied up with variousmerchants for providing lucrative offers to debit card customers.

Within a duration of five months (from November 2020 to March 2021) a total of 31campaigns were launched with various popular merchants such as Jio Mart Ixigo MyntraSwiggy EaseMyTrip Yatra Zomato Uber Grofers Goibibo Flipkart Seniority etc.

Internet Payment Gateway (IPG): The Bank's IPG infrastructure was set upto provide an electronic payment platform Baroda e-Gateway for its customers to enablethem to collect payments through their own website / e-commerce business by enablingpayment collection using credit card/ debit card and net banking. To provide a seamlessand customisable service Bank tied up with 18 aggregators/master merchants and onboardedaround 1500 merchants. Bank achieved a growth of 57% in IPG merchant on-boarding in FY2021.

Baroda FASTag (National Electronic Toll Collection - NETC): Bank issued2.68 lakh FASTag. The Bank's FASTag is now available of FASTag to other banks' customersthrough online mode and TAB banking.

BHIM Baroda Pay: UPI is a system that powers multiple bank accounts intoa single mobile application (of any participating bank) merging several banking featuresseamless fund routing and merchant payments into one hood. It also caters to the“Peer to Peer” collect requests which can be scheduled and paid as perrequirement and convenience. During FY 2021 financial transactions (outward) under UPIrose to Rs 110 crore an increase of 100%.

UPI Autopay: With this new facility introduced under UPI 2.0 customerscan now enable recurring e-mandate using any UPI application for recurring payments suchas mobile bills electricity bills EMI payments entertainment/ over the top (OTT)subscriptions mutual funds etc. Presently Bank is live in UPI Autopay as an issuer.

UPI International: UPI International is jointly developed by NationalPayments Corporation of India (NPCI) and NETS (Network for Electronic Transfers) ofSingapore for promoting QR based payment through UPI application in Singapore Dollar(SGD). The account shall be debited in INR but the amount paid to the merchant will be inSGD. Presently Bank is live as an issuer.

GST payments through UPI: In a momentous decision to promote digitalpayments in Business to Customer (B2C) transactions through Dynamic QR Code Government ofIndia laid down guidelines for Goods and Services Tax (GST) enablement in UPI. It wasmandated that corporate merchants with annual turnover of Rs 500 crore and above have tofollow QR code provisions for Dynamic QR Code invoicing solution with GST components tocustomers.

Acquired merchants of the Bank can avail the facility of Dynamic QR Code with GSTcomponents. BHIM Baroda Pay application is compliant with the GST related changes and canscan the GST enabled QR Code decode and provide the requisite information required byNPCI in request message.

WhatsApp Banking : Bank launched WhatsApp Banking as a new age deliverychannel that uses social media platform i.e. WhatsApp Messenger application forproviding banking services to Bank's customers and non-customers. Within three months ofits launch more than 6.25 lakh users have been onboarded on WhatsApp Banking. During theyear Bank provided 13 services to its customers and 5 services to non-customers. In thenext phase 11 additional services are proposed to be incorporated into this platformwhich would further enhance customer convenience and improve their banking experience.

Baroda Connect : During the year a new version of Internet Banking(FEBA) was implemented with additional features capabilities and customer friendlyinterface. During the year the Bank on-boarded 11.65 lakh users on the internet bankingplatform.

Baroda TabIT: The Bank embarked upon digitising its customer on boardingprocess through tablet for instant CASA opening along with host of services (PersonalisedCheque Book Personalised Debit Card Mobile Banking with MPIN UPI etc.) through its TABbanking platform - Baroda TabIT. Bank opened around 27 lakh savings account through thisplatform during the year. Current accounts of individuals proprietorship and partnershipfirms are now being opened through TAB Banking. The TAB on-boarding platform is nowextended for FASTag issuances and on-boarding of merchants for availing UPI services.

Analytics Centre of Excellence (ACoE)

ACoE set up the Peta Bytes of Big Data Lake (BDL) platform which was further expandedin January 2020. The Big Data Lake platform is currently ingesting data from multiplesource systems which include key internal sources such as domestic and international corebanking treasury management systems LLPS mobile banking internet banking etc. andexternal sources such as Credit Information Bureau (India) Limited (CIBIL) CRIF High MarkCredit Information Services Pvt. Ltd (CRIF) Corpository Capital Line etc.

Multiple dashboards were developed to provide actionable insights to various verticalsthrough rich visualisations exhaustive Key Performance Indicators (KPI) and dimensions.These dashboards cater to both business and regulatory/ compliance needs up to branchlevel.

One of the key focus areas of the ACoE programme has been the development of predictiveand descriptive analytics use-cases to help the Bank across revenue cost and riskinitiatives with multiple predictive models across retail/ MSME/ wealth cross-sellcollection management ATM forecasting treasury asset and liability management (ALM) andIndian Accounting Standard (Ind AS) 109 pertaining to financial instruments.

ACOE developed models to cross-sell asset (home loans personal loans car loans) andliability products (saving bank accounts fixed deposits) to customers.

Information Technology (IT)

The Bank continuously improves its products systems and structure to meet the growingaspirations of the customers. Digitisation requires constant evolution and upgradation ofIT infrastructure. Some of the major initiatives undertaken during the year are:

• Bank successfully completed the technology integration of erstwhile Dena Bankand Vijaya Bank well ahead of the set timeline of March 2021 in spite of the challengesdue to COVID-19.

• Bank successfully completed the CBS application upgrade of Finacle 10 for all 17international territories of the Bank.

• Bank introduced Centralised Positive Pay System (CPPS) for Cheque TruncationSystem (CTS) clearing.

Customers can reconfirm the key details of issued cheques through various alternatedelivery channels and through branches.

• There is consistent reduction in overall technical declines across all channelsto 0.42% in FY 2021 from 0.67% in FY 2020 in spite of considerable growth in transactionsacross all channels particularly through Mobile Banking and UPI.

Significant improvement in many technology related parameters which reflected inMinistry of Electronics and Information Technology (MeitY) scorecard of the Bank.

Cyber Security

In today's world new risks emerge every hour of the day. Increased risk of cybercrimehas led to a focussed approach to mitigate the emerging cyber risk. Monetary andreputational risks are high and have been mitigated with appropriate Cyber Security Policyand Cyber Security Crises Plan. The Bank has a well-defined Cyber Security Governanceframework in place that is operated through a combination of management structure policyframework and operational controls. The Bank follows both NIST (National Institute ofScience and Technology USA) Cyber Security Framework and RBI Cyber Security Framework. Inaddition to the existing checks and controls Bank undertook the following measures toenhance cyber security:

• Deception Technology which aims at preventing cybercriminals who have managedto infiltrate network from doing any damage to the Bank.

• Regular Random Early Detection (RED) team exercise carried out to providevaluable and objective insights about vulnerabilities and the efficacy of defenses andmitigating controls already in place.

• Cyber Insurance Policy from a reputed insurance provider to protect business andindividuals from Internet-based risks and frauds.


The Bank has been instrumental in developing fintech partnerships launching newproducts and reinventing business processes. Major achievements and initiatives during theyear:

• The Bank has a market share of 11% on the online bill discounting TReDSplatforms. The Bank served the credit needs of over 3000 MSMEs through this platform.

• As a step aimed at strengthening the loan processing Bank integrated the onlinePSB59 loan portal with its internal Loan processing system i.e. LLPS for retail MUDRA andMSME products. This enabled seamless flow of all information thus improving the TAT.

• The Baroda StartUp programme launched in February 2020 has been gainingmomentum. The Bank on-boarded about 1500 startups by March 2021 through its uniquebouquet of services with a market share of 4% in Department for Promotion of Industry andInternal Trade (DPIIT) registered startups. The Bank performance under UPI on is alsoworking on a specific credit product designed to meet the financial needs of the startups.

• The BOB Innovation Centre (BOBIC) set up in collaboration with IIT Mumbai atits Powai campus continues to show satisfactory progress. This is the first of its kindpartnership between a PSB and technology institute in the Banking Financial Services and

Insurance (BFSI) space. Five major projects in the field of banking technology havebeen identified for research and development by IIT professors. During the year the Bankalso instituted a Chair Professorship on “Digital Entrepreneurship” in IITMumbai.


The Bank has ensured impactful presence in electronic media through regular TV andradio campaigns. The Bank increased its focus on signature events such as Udayswar –Prithvi Concert “Facebook Live musical events” of Srajan – the sparkJashn-e-Rekhta Season 1 and India v/s England cricket series which consisted of 4 Testmatches 5 Twenty20s and 3 One Day Internationals among others.

Advertorials were released on benefits of Bank's popular products such as car loanshome loans savings accounts NRI accounts gold loans and digital lending schemes duringcampaign periods and festival season. Bank conducted major campaign “Hum KareMumkin” promoted by the Bank's Brand endorser P.V Sindhu. The campaign was designedto build positivity during festival season. With COVID-19 pandemic impact and increasedconsumption of digital marketing channels Bank strengthened its transformation journeyfrom physical to digital marketing with the Bank's social media channels and website asthe convergence point for all the data and customer engagement. Special digital campaign‘Ek Forever Rishta' was launched for car loan home loan education loan and otherdigital products. Also special lead generation digital campaigns were launched for carloan and home loan lead generation. The leads are collected using the Digital LendingPlatform of the Bank. The campaign uses various digital platforms like FacebookInstagram Google Search and Display Hotstar Inshorts Times Hindustan Times and othernews websites website aggregators native and affiliate channels.

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

Social Media Channels Statistics (No of likes / Followers) as on March 31 2021
Facebook Likes 1680000+
Twitter Followers 137000+
YouTube Subscribers 69000+
LinkedIn Followers 123000+
Instagram Followers 165000+

The Bank released a number of awareness messages for the public during COVID-19pandemic.

Customer Service

The Bank constantly endeavours to set industry benchmarks and pioneer innovationsacross products processes and service delivery that are imperative to providing seamlessexperiences to its customers. Customer interactions are continuously monitored acrosschannels and channel capabilities (functionalities and the user experience) were enhancedto ensure ease of banking from home which has become the need of the hour due to thepandemic. The Bank ensured that frequently used functionalities by customers were madeavailable through digital channels and contact centre.

The 24*7 contact centre has the capability to connect with customers in their preferredlanguage. Apart from Hindi and English the language capability was increased to nineregional languages. The contact centre handled 3.95 crore customer calls during the year.To assess customer satisfaction levels across segments various surveys are conducted bythe contact centre.

Customer Grievance Redressal System (a module of the CRM package) with time bound autoescalation options to attach documents provide feedback on resolution quality and reopencomplaints is now widely used by customers.

During FY 2021 the Bank saw significant the usage of remote channels for managinggrievances. Approximately 80% of the grievances were resolved within the pre-definedturnaround time. The Bank on improving the quantitative performance indicators ofgrievance redressal but also on improving the quality of resolution to improve customersatisfaction. Service levels across the network of branches are monitored through mysteryshopping/service audits and workshops these audits were conducted through videoconferencing due to the pandemic. The General Manager Operations and Services isdesignated as Principal Nodal Officer for customer complaints in the Bank. Moreover allzonal heads and regional heads are designated as nodal officers for their respective zonesand regions. Further the names of respective nodal officers along with their contactnumbers are displayed in all the branches of the Bank. The Bank has appointed an InternalOmbudsman which is a forum made available to customers for grievance redressal prior toapproaching the Banking Ombudsman. All complaints which are rejected or partiallyaccepted by the Bank are systematically escalated to the Internal Ombudsman for review.This enhances the customer confidencein the Bank's systems and expedites the process ofgrievance redressal thus making it more transparent. The Bank's code of commitment tocustomers and MSME's citizen charter grievance redressal policy and banking ombudsmanscheme are available on the Bank's website to promote fair banking practices bymaintaining transparency in various products services and policies.

At the Board level the subcommittee of Board for Customer addresses the issuesrelating to the formulation of policies and assessment of compliance with same with theaim of consistent improvement in the quality of customer service. The subcommittee alsoanalyses the feedback received from customers through Voice of Customers and compares theBank with its peers on various parameters to enhance the customer experience.

During FY 2021 the Bank ensured that ramp facility comprehensive notice boards(displaying relevant and updated information) special queue for senior citizens wereavailable in all the branches ATMs and e-lobbies. Branches also underwent a facelift andwere designed to enhance customer experience through better ambience increased seatingarea with special focus for senior citizens and the differently abled customers.

Branch Network

As of March 31 2021 the branch network of the Bank is as under:

March 31 2020

March 31 2021

Domestic Branches Number of Branches % Share in Total Number of Branches % Share in Total
Metro 2163 22.81 1794 21.84
Urban 1860 19.62 1478 17.99
Semi urban 2525 26.63 2090 25.44
Rural 2934 30.94 2852 34.72
Total 9482 100.00 8214 100.00
Overseas Branches/ Offices (including branches of overseas subsidiaries) 101 96

The Bank opened 13 new domestic branches and merged 1281 branches with existingbranches during FY 2021.

Currency Chests

The number of currency chests stood at 145 as on March 31 2021. These chests supporteffective cash management in the Bank as well as vaulting cash on behalf of RBI. All thecurrency chests as well as branches are provided with Note Sorting Machine (NSMs) as perRBI guidelines.

Risk Governance and Internal Controls

The increased focus on risk and the supporting governance framework includesidentifying the responsibilities of different parts of the Bank for addressing andmanaging risk. Often referred to as the “three lines of defence” each of thethree lines has an important role to play. These are: i. First line of defence – Thiscomprises of all the Bank's employees as they are required to own and ensure the effectivemanagement of risk and compliance with regulations Bank's policies and guidelines. ii.Second line of defence – This comprises of the risk control owners the riskmanagement function and compliance function. It is responsible for identifying measuringmonitoring and reporting risk on an enterprise-wide basis independently from the firstline of defence. iii. Third line of defence - An independent assurance is provided by theinternal audit function by conducting internal risk-based and other audits. The reviewsprovide assurance to the Board that the overall governance framework including the riskgovernance framework is effective and that policies and processes are in place andconsistently applied. The role of audit function is defined and overseen by the AuditCommittee 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 focussedoversight 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 given below:

Enterprise Risk Management

The diversity of the Bank's business lines requires a comprehensive Enterprise RiskManagement approach to promote a strong risk management culture to help in the aggregationearlyidentification and management of all risks and to facilitate capital allocationamong various business lines. All risks are approved within the overarching Risk AppetiteFramework and are adequately hedged.

The Bank is constantly endeavoring 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. TheBank's experience in internal ratings over the years has enabled the Bank to obtain theregulator's approval for running the foundation internal rating-based approach(F-IRB) approach of credit risk under Basel II guidelines from March 31 2013. Under theIRB approach banks develop their own empirical model to quantify required capital forcredit 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 developed in-house internal rating model for Country Riskassessment and State Government exposure model for assessing the riskiness of the borrowerby assessing various parameters and exposure caps are fixed considering the riskinessestimated by these models. The Bank has implemented ‘Risk Adjusted Return on Capital(RAROC)' framework for corporate credit exposures for evaluating credit risk exposuresfrom the point of ‘economic value addition' to the shareholders. The Bank has alsoimplemented Enhanced Access and Service Excellence (EASE) Risk Scoring Model forindependent risk-based review of the credit proposals by risk vertical of the Bankincluding classification of credit proposals into high/ medium/ low risk along with riskdecisions 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 controland monitor its treasury functions which undertake market risk positions.

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 and risk-return analysis oftreasury trading portfolio on 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. Interest Rate Risk in the Banking Book(IRRBB) arises due to mismatch between rate sensitive assets and liabilities which mayadversely impact the earnings/economic value of equity of the Bank with the change ininterest rates in the market. For measurement and monitoring of interest rate risk inbanking book the Bank uses risk management tools such as Traditional Gap AnalysisEarning at Risk and Modified

Duration of Equity. The short-term impact of interest rate movements on net interestincome (NII) is worked out through the ‘Earnings at Risk' approach by taking intoconsideration parallel shift in yield curve yield curve risk basis risk and embeddedoptions risk. The long-term impact of interest rate movements is measured and monitoredthrough 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 StatisticalAnalysis System (SAS) Enterprise Governance Risk and Compliance (SAS EGRC) for systemicand integrated management of Operational Risk. Monitoring of Key Risk Indicators Programme(KRI) Risk Control and Self-Assessment Programme (RCSA) and root cause analysis furtherstrengthened the control environment. The Bank created a repository of Internal Loss Dataas part of Operational Risk Management and carrying out Root Cause Analysis.

To mitigate and control operational risk at a transaction level the Bank hasestablished a CTMU for monitoring of all domestic transactions from the Know YourCustomer/Anti-Money Laundering/ Combating the Financing of Terrorism (KYC/ AML/ CFT)perspective. The Bank segregated customer interface (front office) from the execution oftransactions (back office) by centralising a number of back-office functions. CentralisedTrade Finance Back Office has been set up to minimise operational risk in forextransactions. The Bank has put in place an incentive scheme to promote Risk Culture atEnterprise wide level. Financial and non -financial incentives were announced for theemployees for reporting of near miss events.

In order to ensure the operational resilience Bank has a well-defined Policy onBusiness Continuity Planning in place to address issues in efficient manner at differentlevels.

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 apolicy matter to reduce the greenhouse effect the Bank does not finance borrowers forsetting up new units producing / consuming Ozone Depleting Substances (ODS) and small /medium scale units engaged in the manufacturing of aerosol units using Chlorofluorocarbons(CFC) which enables reduction in greenhouse effect.


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 an independentfunction. 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 other regulatory guidelines issued from time to time. It also ensures adherence to theBank's internal policies and fair practices code. The Bank has a robust compliance systemincluding a well-documented compliance policy outlining the compliance philosophy of theBank role and set-up of the compliance vertical composition of its staff and theirspecific responsibilities.

The compliance function advises senior management and the Board on the position ofBank's compliance with applicable laws rules and global standards and keeps them informedof developments in the area. It also educates employees about compliance issues byconducting periodic trainings and workshops for business staff and designated complianceofficers. Knowledge management tools for this purpose have also been uploaded on theBank's website. The Bank has implemented a web-based compliance management solutionfor certification and monitoring of various regulatory statutory and internal guidelinesat each level in the Bank for further strengthening the compliance function. The Bank hasalso automated the process for obtaining information from the “Insiders”as defined in the Securities and Exchange Board of India (SEBI) Code of Fair Disclosureand Conduct.

Amongst several activities the domestic compliance function conducts on-sitecompliance test checks on more than 65 parameters on KYC-AML carried out through RegionalCompliance Officers (RCOs). As many as 25% of branches are randomly selected on aquarterly basis. Bank conducts on-site compliance audit of various functions on halfyearly basis. Off-site compliance test check of around 30 parameters on issues related toKYC/AML guidelines and other parameters of compliance is carried out on a monthly basisthrough the web based tool-Offsite Compliance Reporting and Monitoring System (OCRMS).

An annual group wide compliance plan is prepared and regular monitoring is carried outfor ensuring adherence to the plan. Additionally compliance risk is assessed annually anda risk-oriented activity plan developed is for compliance assessment.

In the process of capacity building the Bank imparted training to all complianceofficers and nominated officials to various external training programmes conducted byreputed institutions on latest developments in the areas of compliance. In order topromote professionalism the Bank encouraged staff members to pursue professional coursesfrom reputed institutes like Indian Institute of Banking and Finance (IIBF) Associationof Certified Anti-Money Laundering Specialists (ACAMS) etc.

There were no significant incidents reported during FY 2021 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 (money laundering riskcategorisation) of customers' accounts is done on half yearly basis. Re-KYC of alleligible customers is done on half yearly basis after carrying out money laundering riskcategorisation exercise as per extant guidelines of the RBI. For this purpose the

Bank has developed automated process for identification and generation of notices/sending SMS/email to such customers to notify them for submission of requisite KYCdocuments. The Bank implemented Central KYC (CKYC) process for registration of newlyon-boarded individual customers' KYC information on Central KYC Registry. CKYC number wasallotted to 399 lakh customers as of March 31 2021.

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. During the audit carried out for 8214 branches in FY2021 7536 branches (91.87%) were in Low Risk 572 branches (6.57%) were in Medium Risk94 branches (1.15%) were in High Risk 1 branch (0.01%) was in Very High Risk. Out of thetotal 11 branches had no rating as they were new branches/ treasury.

The Bank engaged an independent firm as a knowledge partner for comprehensive review ofaudit function in-line with the processes focusing on centralisation of activities by useof technology imaging solutions and digitisation. The audit transformation process wascompleted and audits under the revised approach commenced during FY 2020 and now hasstabilised over the period.

The Audit execution under automated environment commenced for Credit Audit (fromSeptember 1 2019) and Universal Branch (from February 1 2020) during FY 2020 and hasstabilised post which whole gamut of audit approach is undergoing a change with extensiveuse of technology analytics sampling and advanced audit methodology.


The vigilance administration in the Bank includes monitoring/ reporting of frauds apartfrom control monitor and supervision of various vigilance functions. The vigilancemachinery in the Bank also imparts knowledge at all levels about vigilance functionsextends help to various disciplinary authorities and appointing authorities to act swiftlyand correctly in examining issues arising out of frauds complaints and seriousirregularities pointed out in various inspection reports of branches/ offices.

The Bank has beefed up its vigilance setup at zonal level to conduct preventive auditof all branches at regular intervals and to act proactively on information to control thedamage at bare minimum level. The vigilance team shall focus on preventive measures.

The vigilance function in the Bank consists of three sections:

1. Preventive Vigilance: Preventive measures hold greater significance in containingdamage than detection and punishment of corrupt and other malpractices. Preventivemeasures such as inspections of sensitive areas of business identification of sensitiveposts and scrutiny of personnel posted thereon ensuring observance of conduct rulesmonthly meetings at branch level to discuss branch specific vulnerabilities trainingprogrammes for staff regular scrutiny of inspections and audit reports and circulars onpreventive vigilance regularly issued and circulated by various business verticals wereundertaken to reduce the number of vigilance cases.

2. Detective Vigilance: Detective Vigilance includes conducting regular and surpriseinspection in sensitive areas to detect if there have been any instances of corrupt orimproper practices by the staff undertaking prompt scrutiny of annual property returnsand take further action if called for gathering intelligence from own source about themisconduct / malpractices examining the same for logical conclusion through appropriateaction after due process.

3. Punitive Vigilance: In addition to ensuring that employees at all levels indulgingin wilful and mala fide transgressions of rules and provisions are not allowed to gounpunished the Bank also ensures that bona fide decisions taken in normal course ofbusiness are evaluated objectively and with required prudence. The vigilance function inthe Bank enables proactive decisions by stressing on strengthening systems and proceduresthrough preventive vigilance administration. It also plays a major role in identifying andplugging loopholes and providing inputs to the top management in framing policies in fraudprevention. The turnaround time of disciplinary cases improved due to proactivecommunication which helped in motivating the employees with quick redressals.

Human Resources

The Bank has a rich talent pool with over 82000+ employees on its rolls. The Bankcontinuously undertakes multiple initiatives for strengthening and developing its humanresources such as recruitment addressing training needs of employees employee engagementand capability building. The Bank has always been a forerunner in adopting and innovatingnew concepts practices and processes. Post amalgamation “Best of Three”approach was adopted in framing the HR policies and schemes in the amalgamated entity. Atthe core of all activities are ‘PEOPLE' who are the key business enablers. Under theBank's organisational transformation initiatives envisaging people processes and systemsthe Bank launched various innovative employee centric initiatives and has also undertakenactivities to revamp key systems and practices.

The various employee centric initiatives propelled the Bank to be bestowed with theprestigious ‘Golden Peacock HR Excellence Award 2020'. The award is instituted by the‘Institute of Directors' and is bestowed upon organisations that have achievedoverall excellence in HR and people management practices thus contributing to the needsof business the profession employees industry and the nation. The following initiativeshave been taken during the year which have had a direct and significant performance:

Manpower Planning and Recruitment

The Bank has built a new scientificmanpower planning model designed to estimateskill-based manpower needs at various levels. The model helps the Bank in taking keystrategic decisions such as recruitment deployment promotions and trainings.

The Bank recruited 63 officers and 2360 business associates through direct recruitmentduring FY 2021. The Bank also hired specialised staff with expertise in niche and keyfocus areas to strengthen its capabilities in different domain areas.

Baroda GEMS “Growth and Empowerment Management System”

The Bank had embarked upon an ambitious journey to unlock the potential of its humancapital. The transformation included a new scientific and objective Performance

Management System (PMS) named Baroda GEMS which is also developmental and is designedto suggest areas of improvement to employees as well. This robust PMS paved the way forseveral waves of transformational initiatives each intended to realise untappedproductivity benefits:

• Scientific and personalised target setting with built-in market outlook

• INSIGHT a first in the industry tool delivering personalised performanceanalytics and forward looking priorities for employees to get system generated feedbackfor improving their performance.

• Job family and career path design is an opportunity for employees to pursue acareer based on their choice and enabling a focussed career path.

• BRITE is a holistic rewards and recognition programme that links performance tooutcome.

Employee Assistance Programme

Bank introduced ‘workplace counselling' called ‘Employee AssistanceProgramme' (EAP). Under this initiative Bank has hired the services of professional EAPservice provider who provide counselling services through multiple channels such asface-to-face counselling phone-call and video-conferencing emails and chats. Employeescan seek counselling support for any issues including anxiety depression stressinsecurity fears loneliness loss of self-confidenceinter-personal relationships andcommunication issues family problems bereavement any traumatic situation disease (likecancer etc.) addiction motivation personal development work-life balance or any otherissues which disturbs peace of mind.

Baroda Anubhuti Programme

It is an employee engagement programme designed to fosterimpact on Bank's the spirit ofteam bonding and collaboration and creating a happy and fun workplace. Variousinitiatives like employee of the month spot recognition–capturing ‘WoW'moments fun hour at all branches/offices local community service/ social activities areundertaken to enhance the overall employee engagement levels. Mandatory community serviceprogrammes are carried out through all branches/offices once in six months.

Measures amid COVID-19 worldwide pandemic

With the classification of banking under ‘essential services' the Bank had togear up to address immediate issues of keeping employees safe provide banking facilitiesto customers/ general public and maintain continuity of business operations. The Bank'spriority has always been to safeguard the health and well-being of its 82000+ workforce inall the countries that it operates while continuing to support the national priorities.Barodians have risen to the occasion in these challenging times and responded splendidlyto the call of nation through their sincere dedicated and tireless efforts alongside thestress and anxiety of being exposed to the infection amid the sudden outbreak of COVID.Some of the measures put in place by the Bank for providing timely help and support to itsemployees during the pandemic situation is detailed under:

• Provision of isolation rooms for COVID positive staff members in cities whichwere in severe grip of the infection and facing dearth of availability of hospital beds.

• Reimbursement of hospitalisation/ home quarantine expenses incurred by employeesfor COVID-19 treatment.

• Payment of lumpsum amount of Rs 25000 to COVID infected staff members fordefraying the miscellaneous expenses incurred for treatment etc.

• Payment of ex-gratia/ additional financial assistance of ` 30 lakh to dependentsof employees in case of fatality due to COVID-19.

• Scholarship up to graduation level for children of employees who died in harnessdue to COVID-19.

• COVID helpline put in place at zonal centres and Corporate Office for enablingthe employees to reach out in case of any emergency/ clarification related to COVID.

• Bank provided ‘Doctor-on-call' facility for all its employees for anyconcerns related to general health and wellness.

Learning and Development

The Bank always believed that learning and development plays a vital role in shapingthe organisation's human capital. 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. Baroda ApexAcademy continued their training efforts and excelled in the training delivery also indifficult times of COVID-19 pandemic by taking following initiatives:

• Launch of Baroda e-Academy virtual training through Microsoft Teams platform.

• Launch of Baroda Tuber ‘Each One Teach Many' campaign on Learners' day foradoption of peer-to-peer learning

• Development of a new on-boarding and mid-career programme.

‘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 a 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 LeadershipDevelopment Programme post outbreak of COVID-19 a re-look at the entire portfolio oflearning offerings vis--vis the original design was undertaken to set priorities forwhat will be necessary to adapt to a virtual or digital-only format.

• To ensure uninterrupted capacity building a hybrid learning model with a blendof synchronous and asynchronous channels that can deliver most impactful and enjoyableexperience for participants was put together in the rapidly evolving times to reinforcethe link between business outcomes and long-term capability building without compromisingon the learning experience and developmental journey envisaged for the participants ofWeLead.

Reservation Cell

An exclusive reservation cell has been functioning to monitor the reservation and otherenabling provisions for SC/ST/ Person with Disabilities (PWD) /Ex-Serviceman and OtherBackward Castes (OBC) employees. Executives in the rank of General Manager are appointedas Chief Liaison Officers for SC/ST/PWD and ex-serviceman employees and OBC employeesrespectively who ensure compliance of various guidelines pertaining to them. With effectfrom February 1 2019 reservation of 10% for Economically Weaker Sections (EWSs) in allexercises for direct recruitment in the Bank was implemented. The Bank providesreservations for Persons with Disabilities (PWDs) at the rate of 4% of the total vacanciesarising in officer (identified posts) clerical and sub Government guidelines.

Caste category wise count as on March 31 2021
Officer 7488 3388 12088 -
Clerk 4709 2915 8228 95
Sub staff 3041 1028 2811 -
Total 15238 7331 23127 95
% to total staff strength 18.58% 8.94% 28.20% 0.12%

Periodical Meetings: The Bank holds quarterly meetings with the representatives ofAll India Bank of Baroda SC/ST (AIBOBSCST) Employees' Welfare Association and half-yearlymeetings with the representatives of All India Bank of Baroda OBC Employees' (AIBOBOBC)Welfare Association as per the 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.

Career Progression

Concerted efforts have been taken by Bank for fostering career progression of employeesfor rewarding them for their performance and motivation. Horizontal movement of officersacross different functions and overseas placements are encouraged to provide employeeswith wider exposure.

Thrust On Diversity

The Bank follows a non-discriminatory and equal opportunity policy for all itsemployees and is transparent in all issues relating to promotion career path transferpolicy and employee benefit / welfare schemes. The Bank introduced ‘Job Roles' forvisually impaired employees. In order to retain women employees at all levels and inrecognition of the concomitant responsibilities of women the Bank put in place variousfacilities to support women employees such as sabbatical leave health check-up programmefor women employees establishment of crche facility etc. among other initiatives.

Premises Re-engineering

Following are some of the highlights of the Bank in an attempt to reduce carbonfootprint:

• Bank obtained Green Building Certificate GOLD rating for Baroda CorporateCentre and SILVER rating for -staff cadreinayearasper Baroda Sun Tower Building in Mumbaithrough Indian Green Building Council (IGBC).

• More than 120 branches in rural/semi urban areas are run on solar energy. Totalcarbon dioxide emission of 344 tonnes was reduced as a result of using greenenergy/renewable/solar energy.

• The Bank is aiming to obtain platinum rating as per IGBC for proposed BarodaApex Academy Building in Ahmedabad.

• Conventional lights fittings in all branches and offices were replaced withenergy efficient LED lights which consumes half the power of conventional lights.

Implementation of Official Language (OL) Policy

The Bank continued to make exemplary progress in the implementation of the OfficialLanguage Policy of the Government of India. Use of Hindi and other Indian languages forbusiness growth as well as for providing digital products to the customers is asignificantcharacteristic of the language policy adopted by the Bank and has been wellappreciated by Government of India and regulatory authorities from time to time.

Bank organised a webinar on ‘Compliance Culture in Banking'. Books such as‘Bhartiya Bhashaen- Ek Nazar Mein' ‘Apni Bhasha – Apni Baat (Grahak BankerSanwad in 11 Indian languages)' and ‘Role of Public Sector Banks in making India a $5trillion Economy' and on other various topics were published. Hindi Diwas Vishwa HindiDiwas and Matribhasha Diwas were celebrated at various offices/ branches across India andoverseas. A ‘Kavi Sammelan- Geet Gazalevam Hasya ki ek Suhani Sham' was alsoorganised through digital mode. To promote the availability of Bank services/ apps invarious Indian languages a short film ‘Banking Apki Bhasha Mein' was made in-house.A campaign to popularise these facilities was launched through Bank's social mediachannels like Facebook Twitter and YouTube under #Bankingapkibhashamein. For FY 2021 theBank under its ‘Maharaja Sayajirao Lokbhasha Samman Yojana' felicitated Prof.Bikaram Chaudhary for patronising the tribal languages of Gujarat like Chaudhary GhodiaGaamit and Kunkanaa. Bank selected renowned ghazal singer Padmashri Pankaj Udhas for‘Maharaja Sayajirao Bhasha Samman' and Indian folk singer Padmashri Malini Awasthifor ‘Maharaja Sayajirao Lokbhasha Samman'.

Bank continued with its unique scheme “Medhavi Vidyarthi Samman Yojana” forpopularising Hindi in 69 universities of the country.

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 has 64 Rural Self Employment Training Institutes (RSETI) centres in 10 states/UTs across the country to impart skill development training programmes to the youth ofrural and semi urban areas for generating self employment. These centres have conducted19188 training programmes and imparted training to 5.35 lakh youth out of which 3.52lakh have already secured employment or have setup their own ventures. Out of 64 RSETIcentres 59 RSETI centres were graded as “AA/A” (outstanding) based on theoverall performance/functioning of the RSETIs. The Bank has also set up 85 FinancialLiteracy and Credit Counseling Centres (FLCCs) in twelve states/ UTs which providefinancial counseling services and education to the people in rural and urban areas aboutvarious financial products and services available from the formal financial sector. Thesecentres also take up activities that promote financial literacy awareness about bankingservices digital banking financial planning and amelioration of debt-related distress ofan 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 accepting 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 credit cards. The company'score business is credit card issuance and also provides support to the Bank by carryingout its merchant acquiring operations. New credit card acquisition by BFSL in FY 2021stood at 2.55 lakh which resulted into an active card base of 6.44 lakh ending March 312021. BFSL is among the top 5 issuers in the country (out of a total of 32 credit cardissuers) for March 2021 by issuing more than 55000 new credit cards as per RBI data.

In FY 2021 a super-premium credit card ‘Eterna' was launched for Baroda Radianceand other high net worth customers. BFSL also launched three co-branded credit cards withesteemed professional institutions such as The Institute of Chartered Accountants of India(ICAI) The Institute of Cost and Management Accountants of India (ICMAI) and TheInstitute of Company Secretaries of India (ICSI).

Retail spends grew by more than 51% over FY 2020 backed by marketing alliances andpartnerships with top brands in both offline and online spend categories.

BFSL continues to invest in technology initiatives to improve customer experience viz.BBPS and Vision Plus the leading Card Management System project to go live soon. BFSLimplemented video KYC Central KYC full-fledged contact centre along with IVR customerDIY journey with revised flow integrated with e-signatures. The strategic intent of thefirm is to be a top ranking customer centric credit card issuer creating value for allits stakeholders.

Rs crore

BOB Financial Solutions Ltd.
Particulars FY 2020 FY 2021
Total Assets 572.17 972.16
Net Profit/(Loss) (31.53) 10.73
Credit rating Crisil A1+ India rating A1+ Crisil A1+ India rating A1+
Net NPA levels NIL NIL
Return on Assets -5.69% 1.14%

BOB Capital Markets Ltd.

BOB Capital Markets Ltd. (BOBCAPS) a wholly owned subsidiary of Bank of Baroda is aSEBI registered Category-I Merchant Banker and also a Stock Broker with memberships ofNational Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

BOBCAPS offers a wide spectrum of financial services that includes fund raising fromprimary markets / PE funds debt syndication stressed asset resolution equity valuationmergers and acquisitions advisory and stock broking. It has currently five lines ofbusiness viz. investment banking – equity; investment banking – debt;institutional broking retail broking and wealth management. The customer base as of March31 2021 stands at 26715. BOBCAPS achieved a turnaround in its profits during FY 2021.

Notwithstanding the challenges in the business environment due to economic disruptionson account of COVID-19 pandemic BOBCAPS remains cautiously optimistic about the futurepotential of its business verticals primarily on account of growth trends in Indiancapital markets enhanced need for capital structuring and rise in financial literacy/investment awareness. Hence while taking necessary measures to effectively emergestronger BOBCAPS remains focussed on cost while effectively growing its businesses bothon the retail and institutional fronts.

Rs crore

BOB Capital Markets Ltd
Particulars FY 2020 FY 2021
Total Assets 160.71 175.59
Net Profit -0.80 9.34

Baroda Global Shared Services Ltd (BGSS)

Baroda Global Shared Services Bank's wholly owned subsidiary resulted from a strategicdecision made by the Bank in 2017 with an intention of integrating service functions intoa single entity thus reducing service duplication and business unit silos thus creatingsynergies and economies of scale.

BGSS has been able to achieve cost saves because of centralisation. It has also led toredeployment of large workforce from branches in job roles that could be automated. Thisimplies that focus at the branch is on sales and service.

The setup has contributed significantly to delivering cross-sell for the Bank.

The Shared Services also ensures robust and stringent controls in place through variousinternal and external assessments conducted from time to time leveraging the centralisedexecution and availability of data sets through common platforms.

Some of the key achievements of BGSS are as follows:

1. More than 998 Aadhar enrolment centres across country were operationalised for easeof customers and transforming the whole initiative into revenue generating model as well.

2. All trade and forex products pan India have been migrated to Trade Finance BackOffice (TFBO) and hence domestic trade processes have been centralised.

3. A dedicated social media complaint handling unit was rolled out which handlesqueries / grievances / complaints from customers

4. Pension processing activities were centralised at BGSS.

5. There has been significant like productivity First Time Right (FTR) turnaroundtime ATM uptime across verticals through various initiatives.

6. A digital platform Baroda Insta Trade Smart was rolled out to customers andbranches which enables end-to-end integrated channel for customer self-initiatedtransactions and processing of trade finance activities.

7. All the backend activities under cash management services have been migrated and arebeing managed at BGSS.

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 Maharashtra. The company has been formed to provide system integratorservices consultancy and IT development services on matters relating to IT enabledbusiness solutions / IT software product implementation across various lines of businessfor the Bank.

The Company is yet to commence full-fledged operations and it is envisaged to initiateactivities like 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:

Uttarakhand Uttar Pradesh Delhi and National Capital Region (NCR) Haryana andRajasthan. NBL has 160 branches as on March 31 2021. The total business of NBL decreasedto ` 11441 crore on March 31 2021 from Rs 11797 crore as on March 31 2020 onaccount of conscious shedding of bulk deposits and change in composition of its lendingbook. The Bank posted a net profit of Rs 1.26 crore in FY 2021 against a net loss of Rs 68crore during the previous year and thereby has been able to turnaround its profitposition.

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 andExchange Board of India.

The average assets under management (AUM) of Baroda MF for FY 2021 were Rs 8220 crorewhich was lower by 26% as compared to previous year. The flows were impacted improvementacrossmetrics primarily in liquid and fixed income category owing to market conditions andthe pandemic. However the equity AUM continued to grow registering an increase of 29% inAverage Assets under Management (AAUM) over last year. Baroda AMC continues to expand itsthird-party distribution network with particular focus on Independent Financial Advisors(IFA). The company launched two new funds during the year – one equity and one fixedincome each collecting over` 500 crore.

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. This merger will enable the merged entity to have higher market share from thecurrent level of market share which is around 0.3%. Baroda Trustee India Private Ltd isthe dedicated trustee company for the mutual funds managed by Baroda Asset ManagementIndia Limited. The integration is under progress and is expected to be completed during FY2022 subject to receipt of regulatory approvals. The NCLT has approved the amalgamationon February 12 2021.

Rs crore

Baroda Asset Management India Ltd
Particulars FY 2020 FY 2021
Total Assets 77.58 78.39
Net Profit 0.85 1.76
Assets under Management 11204.42 8220.15
Ratio of equity to non-equity oriented assets (%) 0.26 0.58
Return on Assets (%) 2.25 3.00

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 663 crore. Thecompany is promoted by two of India's largest public-sector banks – Bank of Barodaand Union Bank of India which hold 44% and 30% stake in the company respectively alongwith 26% stake held by Carmel Point Investments India Private Limited incorporated byCarmel Point Investment Ltd a body corporate incorporated under the laws of Mauritius andowned by private equity funds managed by Warburg Pincus LLC.

In FY 2021 IndiaFirst Life grew at 1.75 times the overall Life Insurance Industry(including LIC) with 5% growth in Individual New Business APE (Annual Premium Equivalent)compared to Life Insurance growth of 3%. IndiaFirst Life has been growing at a faster ratethan overall industry for the last consecutive seven years which is a record in theinsurance industry. The company is currently ranked 12th in Individual New Business APE(Annual Premium Equivalent) among the private players with assets under management (AUM)at Rs 17109 crore as on March 31 2021.

IndiaFirst Life was certified as a Great Place to Work (GPTW) for the fourth time arecognition considered as the gold standard for defining great workplaces across businessacademia and government organisations along with being recognised among the ‘BestWorkplaces in BFSI' by GPTW BFSI Survey third time in a row and India's Most AdmirableBrands 2020 by The Brand Story on NDTV Prime Profit.

India Infradebt Ltd.

India lnfradebt Limited (Infradebt) is the first Infrastructure Debt Fund (IDF) –NBFC. Bank of Baroda and ICICI Bank are the Sponsors of Infradebt while othershareholders include Citicorp Finance (India) Limited and Life Insurance Corporation ofIndia. Infradebt finances the relatively safe completed infrastructure projects whichhave achieved at least one year of commercial operations. Infradebt has been ratedAAA/Stable outlook by CRISIL ICRA and India Ratings since inception. Infradebt alsoenjoys 100% income-tax exemption on all its income.

The synergy with the Bank arises from Infradebt's focus on lending to strong stableinfrastructure projects - mainly road projects and renewable energy projects thuscontributing to nation building. Infradebt business has grown steadily with a loan bookas on March 31 2021 of Rs 12782 crore net profit for FY 2021 of Rs 283 crore (as perIndian GAAP) and Return on Equity of 14%. Infradebt has also been paying dividendscontinuously for the past four years.

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

Entity Owned funds Total assets Net profit No. of offices No. of Staff
BOB Financial Solutions Ltd 187.6 972.2 10.7 38 546
BOB Capital Markets Ltd. 162.3 175.6 9.3 1 109
BarodaSun Technologies Limited 4.6 4.4 -0.1 1 3
Baroda Global Shared Services Ltd. 21.7 22.9 5.7 5 1981
The Nainital Bank Ltd. 574.6 8182.3 1.3 4 992
Baroda Asset Management India Ltd. 66.6 78.4 1.8 5 94
Baroda Trustee India Pvt. Ltd. 0.1 0.2 0.0 1 1
IndiaFirst Life Insurance Company Ltd. 775.5 17651.3 30.2 29 3102
India Infradebt Limited 2127.8 14692.6 283.2 1 22
Date Awards 2020-21
• Baroda Apex Academy was declared as the winner of the prestigious Golden Peacock National Training Awards 2020 by the awards jury under the Chairmanship of Hon'ble Justice M. N. Venkatachaliah former Chief Justice of India Chairman National Human Rights Commission of India and National Commission for Constitution of India Reforms.
June 2020
• Bank's Digital Marketing entry won the Gold Award in the 4th Annual Masters of Modern Marketing Awards mCube 2020
August 2020
• Best Multi-Channel Campaign by/for a Financial Services/Banking enterprise - The ‘Power of 3' Amalgamation Campaign for Bank of Baroda.
• Bank was awarded the `Top Performing Bank' by the Indian Banks' Association for “Launch of Doorstep Banking Services and Declaration of EASE 2.0 Index Results”.
• Bank ranked ‘First' in categories of “Responsible Banking” and “Deepening Financial Inclusion and Digitisation” under EASE 2.0 Index.
• Bank secured the second place in ‘Governance and HR' and third place in ‘Customer Responsiveness' categories under EASE 2.0 Index.
• Bank won the LearnX Award 2020 for Best use of Technology in Learning.
September 2020
• Bank received the second prize under “Rajbhasha Kirti Puraskar” scheme of Government of India for outstanding performance in the area of Official Language Implementation under linguistic Region ‘B'.
• Bank's Hindi magazine ‘Akshayyam' was also selected for Second Prize under “Rajbhasha Kirti Puraskar” scheme of Government of India.
• Town Official Language Implementation Committee (TOLIC) functioning under the auspices of the Bank at Varanasi and Baroda were selected for awards by the respective regional implementation offices of Government of India.
• Bank was recognised by Optimal Media Solution (A Times Group Companies) by conferring Certificate of recognition “Top Home Loan Provider”.
October 2020
• Bank was adjudged as “Best Technology Bank of the year” by an eminent jury of IBA Annual Banking Technology Awards.
• ‘Baroda Rajasthan Kshetriya Gramin Bank' sponsored by Bank of Baroda received Best Technology Bank award amongst the large banks at IBA Banking Technology Awards 2021. Bank was also declared as the Joint Runner up for Best IT Risk and Cyber Security Initiatives amongst large banks and Best Payment Initiatives.
March 2021 • ‘Baroda Gujarat Gramin Bank' sponsored by Bank of Baroda received Joint Runner up award amongst the large banks at IBA Banking Technology Awards 2021. Bank was declared as the Joint Runner up for Best Technology Bank of Year.
• Bank was adjudged as the winner in the ‘Home Loan' category as part of the FE Best Bank awards for 2020.
• Bank was awarded as the “Best Bank in SHG Credit Linkage” among the Public Sector Banks for FY 2021. This award is announced and awarded to Banks by (MoRD) Ministry of Rural Development Government of India.

Dividend Distribution Policy

Bank is not eligible to pay dividend for the financial year ended March 31 2021 onaccount of not meeting the eligibility criteria stipulated by RBI for this purpose. Thepolicy is given in this Annual Report and is also available on the Bank's website.

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

Shri Ajay Khurana was appointed as Executive Director w.e.f. April 1 2020 by theCentral Government u/s 9 (3) (a) of The Banking Companies Acquisition and Transfer ofUndertakings) Act 1970 till September 19 2021 or until further orders whichever isearlier.

Smt. Soundara Kumar was elected as Shareholder Director under section 9 (3) (i) of TheBanking Companies Acquisition and Transfer of Undertakings) Act 1970 for a period ofthree years from December 24 2020 to December 23 2023. Shri Debadatta Chand wasappointed as Executive Director w.e.f. March 10 2021 by the Central Government u/s 9 (3)(a) of The Banking Companies Acquisition and Transfer of Undertakings) Act 1970 for aperiod of three years or until further orders whichever is earlier vice Shri MuraliRamaswami.


Shri Murali Ramaswami ceased to be Executive Director w.e.f. January 1 2021 uponattaining the age of superannuation on December 31 2020.

Dr. Bharatkumar D. Dangar ceased to be a Shareholders Director w.e.f. December 24 2020on completion of his tenure of three years.

Shri Biju Varkkey ceased to be Non-Executive Director w.e.f. October 21 2020 oncompletion of his term of appointment on October 20 2020.

Board Evaluation

Bank is following Government of India guidelines dated August 30 2018 for PSBGovernance Reforms – Enhancing governance through improved effectiveness ofnon-official directors.

Auditors' Compliance Certificate

The Auditors' Compliance Certificate compliance of the conditions of CorporateGovernance for the year 2020-21 is annexed with this report pursuant to “Part E”of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015.

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 31 2021:

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 arein accordance with guidelines issued by RBI in this regard and that such internalfinancial controls are adequate and were operating effectively. Explanation: For thepurposes of this clause the term “internal financial controls” means thepolicies and procedures adopted by the Bank for ensuring the orderly and efficient conductof its business including adherence to Bank's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information; onCorporate Governance:

f) The regarding directors had the devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.


The Directors place on record their appreciation for the contributions made by theoutgoing Executive Director Shri Murali Ramaswami and other outgoing Directors viz. Dr.Bharatkumar D. Dangar and Shri Biju Varkkey. The Directors express their sincere thanks tothe Government of India RBI Securities and Exchange Board of India other regulatoryauthorities and the overseas regulators for their continued co-operation guidance andsupport. The Directors would like to take this opportunity to express sincere thanks toour valued clients for their continued patronage and support. The Directors acknowledgewith deep appreciation for the co-operation extended by all shareholders banks andfinancial institutions rating agencies stock exchanges and all well-wishers in India andabroad. The Directors also take this opportunity to place on record deep appreciation forthe hard work and dedication of the employees of the Bank.

For and on behalf of the Board of Directors

Sanjiv Chadha

Managing Director and CEO