CONTENT

Sr. No. PARTICULARS Page No.INTRODUCTION

1 History of Banking 32 History of Banking in India 4

BANK OF BARODA

1 Introduction 7

2 Products and Services 11

DATA COLLECTION1 Consolidated Balance Sheet of BoB 152 Consolidated Profit and Loss Statement of BoB 173 Stand alone Cash flow Statement of BoB 18

DATA ANALYSIS1 Ratio Analysis 212 Comparative Financial Statement 243 Trend Analysis 27

FINDINGS AND SUGGESTIONS1 Comments 332 Suggestions 38

CONCLUSION 39BIBLIOGRAPHY

INTRODUCTION:

Banking is the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit. The banking also includes issuance of debit and credit cards, providing safe custody of valuable items, lockers, ATM services and online transfer of funds across the country or world. It is well said

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that banking plays a silent, yet crucial part in economy. The banking activity encourages the flow of money to productive use and investments. This is turn allows the economy to grow.

A banking system also referred as a system provided by the bank which offers cash management services for customers, reporting the transactions of their accounts and portfolios. The banking system should not only be hassle free but it should be able to meet the new challenges posed by the technology and any other external and internal factors. The banks also offer investment and insurance products. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits.

Generally banking in India was fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance. This also included the 2014 plan by prime minister to bring bank accounts to the estimated 40% of the population that are still unbanked.

HISTORY OF BANKING:

The history of banking depends on the history of money—and on grain-money and food cattle-money used from at least 9000 BC. The history of banking begins with the first prototype banks of merchants of the ancient world, which made grain loans to farmers and traders who carried goods between cities. This began around 2000 BC in Assyria and Babylonia. Later, in ancient

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Greece and during the Roman Empire, lenders based in temples made loans and added two important innovations: they accepted deposits and changed money.

During the early periods, although the banking business was mostly done by private individuals, many countries established public banks either for the purpose of facilitating commerce or to serve the Government. The bank of Venice, established in 1157, is supposed to be the most ancient bank. Originally, it was not a bank in the modern sense, being simply an office for the transfer of the public debt.

Banking, in the modern sense of the word, can be traced to medieval Renaissance Italy, to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe. Perhaps the most famous Italian bank was the Medici bank, established by Giovanni Medici in 1397. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.

As early as 1349, the business of banking was carried on by the drapers of Barcelona. There it was subject to official regulation. The drapers were not allowed to commence this business until they had given sufficient security. During 1401, a public bank was established in Barcelona. It used to exchange money, receive deposits and discount bills of exchange, both for the citizens and for the foreigners. During 1407, the bank of Genoa was established.

The development of banking spread from northern Italy throughout the Roman Empire, and in the 15th and 16th century to northern Europe. During the 20th century, developments in telecommunications and computing caused major changes to banks' operations and let banks dramatically increase in size and geographic spread.

HISTORY OF BANKING IN INDIA:

A. BANKING IN ANCIENT PERIOD:

The origin of banking in India can be traced back to almost the Vedic period (beginning 1750 BC). The transformation from pure money lending to proper banking appears to have taken place

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before the times of Manu. Manu, a great Hindu jurist, has devoted a section of his work explaining the deposits and advances and he even laid down certain rules on rates of interest. Later, during the Maurya dynasty (321 to 185 BC), an instrument called ‘Adesha’ was in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another. Also, during the Moghul period indigenous bankers started playing a vital role in lending money and financing of foreign trade and commerce.

B. BANKING DURING BRITISH PERIOD:

Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India’s independence, became the State Bank of India in 1955. For many years the presidency banks acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935.

Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoir d’Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French possession, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking centre.

The Allahabad Bank, established in 1865 and still functioning today, is the oldest joint stock bank in India, it was not first though. The honour belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India.

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi movement led to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by

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the name South Canara (South Kanara) district. Four nationalized banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as “Cradle of Indian Banking”.

C. BANKING POST INDEPENDENCE:

India’s independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economy of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the States in different segments of the economy including banking and finance.

D. NATIONALISATION OF INDIAN BANKS:

Despite the provisions, control and regulation of the RBI, banks in India except the State Bank of India, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. The Government of India issued an ordinance (Banking Companies (Acquisition and Transfer of Undertaking) Ordinance, 1969) and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. These banks contained 85% of bank deposits in the country.

A second dose of nationalization of 6 more commercial banks followed in 1980. With the second dose of nationalization, the Government of India controlled around 91% of the banking business of India. Later on, in 1993, the Government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks. Until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

E. LIBERALISATION OF INDIAN BANKS:

In the early 1990s, the Government entered into a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new-generation banks to be set-up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (renamed as Axis Bank), ICICI Bank

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and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India.

BANK OF BARODA

Bank of Baroda (BoB) is an Indian state-owned banking and financial services company headquartered in Vadodara (earlier known as Baroda) in Gujarat. It is among top four largest bank in India and offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialized subsidiaries and affiliates.

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Currently it is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bank having international presence.

It has been a long and eventful journey for Bank of Baroda with it completing its centenary celebrations in 2008 starting from a small building in Baroda to hi-tech corporate centre in Mumbai and having international presence in over 20 countries, so it’s time to turn back the pages of time, and salute the great moments of its historical saga.

A. HISTORY

The Bank of Baroda was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on 20 July 1908 in the Princely State of Baroda, in Gujarat, under the Companies Act of 1887 with a paid up capital of Rs.10 Lakh. Two years later, in 1910, the Bank opened its first office branch in Ahmedabad.

The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a bank of this nature will prove a beneficial agency for lending, transmission, and deposit of money and will be a powerful factor in the development of art, industries and commerce of the State and adjoining territories."

These words are etched into the mind, body and soul of what has now become a banking legend. Following the Maharaja's words, the emblem was crafted to represent wealth, safety, industrial development and an inclination to better and promote the country's agrarian economy. This emblem shows a coin, symbolizing wealth, embossed with an upraised palm, a safety cover for the depositor's money, with a cogwheel that promotes industrial growth in tandem with the two corn ears that stand for the progress of the staple agricultural growth in the country.

Since its inception in 1908 in Gujarat, the bank had the logo of an industrial and agriculture wheel with Sanskrit letters - `Akshayam te Bhavishyati' (the future is secure).

No history is complete without mention of its heroes, mostly ordinary people, who turn in extra-ordinary performances and contribute to building an institution. There were also the leaders, both corporate and royal, who provided the vision and guided the Bank through trail blazing years, and departing, left behind footprints on the sands of time. This Roll of Honor will be incomplete without mention of men, of the stature of Maharaja Sayajirao Gaekwad, Sampatrao Gaekwad, Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM Chokshi.

Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda survived the crisis, mainly due to its honest and prudent leadership. This financial integrity, business prudence, caution and an abiding care and concern for the hard earned savings of hard working people, were to become the central philosophy around which business decisions would be effected. This cardinal philosophy was over the 94 years of its existence, to become its biggest asset. It ensured that the Bank survived the Great War years. It ensured survival during the Great Depression.

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The bank grew domestically until after World War II. Then in 1953 it crossed the Indian Ocean to serve the communities of Indians in Kenya and Uganda by establishing a branch each in Mombasa and Kampala. The next year it opened a second branch in Kenya, in Nairobi, and in 1956 it opened a branch in Dar-es-Salaam. Then in 1957 BoB took a giant step abroad by establishing a branch in London which was the center of the British Commonwealth and the most important international banking center. In 1958 BoB acquired Hind Bank which was its first domestic acquisition. In 1961 it merged New Citizen Bank of India which helped to increase its branches in Maharashtra. In 1960’s it opened new branches in Fiji and Mauritius and expanded its operation to Tamil Nadu.

In 1969 the Indian government nationalized 14 top banks, including BoB subsequent to which it became state owned banking company.

Even while big names were dragged into the Stock Market scam and the Capital Market scam, the Bank of Baroda continued its triumphant march along the best ethical practices and has managed to insulate itself away from fatal transactions and has strictly adhered to the RBI guidelines.

B. COMPANY PROFILE:

With over 5000 branches globally and staff strength of over 42,000 BoB has continued to retain its leadership position amongst the nationalized banks. The Bank enjoys strong fundamentals, large franchise value and good brand image. Story of Bob is scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of corporate glory. It is a story that needs to be shared with all those millions of people - customers, stakeholders, employees & the public at large - who in ample measure, have contributed to the making of an institution.

Based on 2014 data, the bank is ranked 801 on Forbes Global 2000 list.

Ever since it’s rebranding in 2005, Bank has consistently promoted its major strengths viz. large international presence; technological advancement and superior customer service etc. Bank had introduced the sub brand BARODA NEXT-State of the Art-Straight from the Heart to showcase how it has utilized technology to nurture long term relationships for superior customer experience. The sub brand has been reinforced by alternate delivery channels such as internet banking, ATMs, mobile banking etc and robust delivery outfits like Retail Loan Factories, SME Loan Factories, City Sales Office etc. Bank’s constant endeavor to strengthen its branch/ATM network combined with well informed staff offering personalized service at its various touch points have enhanced customer interactions and satisfaction. Thus the Bank has firmly positioned itself as a technologically advanced customer-centric bank.

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It won best Public Sector Bank award at MCX and CNBC–TV18, India’s No. 1 Business medium presented for the first time, the ‘India Best Banks and Financial Institutions Awards’ to felicitate India’s best financial professionals for their contribution in building a robust financial system in 2011.It won first prize under Indira Gandhi Rajbhasha Shield Competition in 2012.

It was in 2005 when Bob went in for rebranding by spending about Rs.800 million on a high profile rebranding campaign which included Rs.50 million spent on appointing the then Indian cricket team's captain, Rahul Dravid as its Brand ambassador and a punch line "India's International Bank" added to the campaign. In the same year it built a Global Data Centre in Mumbai for running its centralized banking solution (CBS) and other applications in more than 1,900 branches across India and 20 other counties where the bank operates. The bank also changed its decade long logo which comprise dual ‘B’ letterforms that hold the rays of the rising sun which is called the Baroda Sun implying that the bank seek to be the source that will help all the stakeholders realize their goals. The single-colour, compelling vermillion palette was carefully chosen, for its distinctiveness as it stands for hope and energy.

The bank is the first among Public Sector Banks in India, to introduce and implement extended working hours like 12-Hour Banking and 24-Hour Banking. The bank also introduced the unique concept of Happy Hour banking which is designed to encourage customers to avail certain services during lean business hours of the branch by providing them incentives, gifts as well as concessions in service charges etc. This facility is available from 5 p.m. to 8 p.m. at 24 hour banking branches and from 6 p.m. to 8 p.m. at 8 am to 8 pm branches.

After a century now, the bank has its presence in 25 countries across the world. Besides, the Bank of Baroda possess about 495 urban and 561 semi-urban branches throughout the country and about 63 branches in the foreign countries.

C. TIMELINE OF THE BANK:

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Below are some of the important landmarks in the history of the bank.

1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB).1910: established its first branch in Ahmedabad.1953: established a branch in Mombasa and another in Kampala.1959: acquired Hind Bank.1961: merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra.1963: acquired Surat Banking Corporation in Surat, Gujarat.1964: acquired two banks, Umbergaon People’s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.1969: The Government of India nationalized 14 top banks, including BOB

1975: Acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh.

1991: Took over London branches of Union Bank of India and Punjab & Sind Bank.

1996: Entered Capital Market in an IPO.1998: BOB also acquired Punjab Cooperative Bank in a rescue.1999: BOB merged in Bareilly Corporation Bank in another rescue and also incorporated its branch in Guyana and Mauritius.

2002: Got listed on the Uganda Securities Exchange.

2005: Rebranding and acquiring new logo.2007: In its centenary year, BOB total business crossed 2.09 lakh crores, its branches crossed 2000, and its global customer base 29 million people.2010: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand.

At Bank of Baroda, change is a journey. It has a beginning but there will be no end,as it stands on the threshold of a digital era, to echo the same sentiments that guided the Bank in its platinum jubilee year - 'a promising future is the sequel to a glorious past'.

D. MISSION OF THE BANK:

To be a top ranking National Bank of International Standards committed to augmenting stake holders' value through concern, care and competence.

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E. PRODUCTS AND SERVICES OF THE BANK

BoB has a wide variety of products and services that meet diverse requirements of its vast customer base. Some of the products provided by bank of Baroda in banking services are as follows:

PERSONAL:

• Deposits.

• Gen-Next Service.

• Retail Loans.

• Credit Cards.

• Debit Cards.

• Services.

• Lockers.

BUSSINESS:

• Deposits

• Loans and Advances.

• Services.

• Lockers.

CORPORATE:

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• Wholesale Banking.

• Deposits.

• Loans and Advances.

• Services.

INTERNATIONAL:

• Foreign Currency Credit.

• External Currency Bonds.

• FCNR (B) Loan.

• Export Finance.

• Import Finance.

NRI SERVICES:

• Products and Services.

• Deposits Account.

• Taxation.

• Facilities to returning Indians.

• General Information.

TREASURY:

• Domestic Operation.

• Forex Operation.

RURAL:

• Deposits.

• Priority Sector Advances.

• Services.

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• Lockers.

OTHER SERVICES:

• Internet Banking.

• Mobile Banking.

• ATM/Debit Cards.

• DEMAT.

• Rail Ticket.

• Baroda eShopee.

• Baroda Instapay.

• Baroda easy pay.

F. REWARDS

Some of the important rewards received by the bank in last 2 years are as follows:

• Best Public Sector Bank under the category ‘Global Business Development’ by Dun &

Bradstreet – Polaris Financial Technology Banking Awards 2013.

• Banking Technology Excellence Award 2013 among PSBs by IDRBT.

• Bank was awarded 1st Rank in the Public Sector Bank Category in Financial Express -

Ernst & Young Best Banks Survey 2012-13 published in The Financial Express Magazine,

March 2014 issue.

• MSME Banking Excellence Award-2013 as the Best Bank in MSME by the Chamber of

Indian Micro Small and Medium Enterprises.

• The Sunday Standard Best Banker’s Award – Best Banker-HR constituted by The New Indian Express Group.

• ASSOCHAM 9th Annual Banking Summit –cum-Social Banking Award 2013-Winner in Public Sector Banks Category in the field of ‘Social Banking’.

• “Excellence in Home Loan Banking” Award by My FM Stars of the Industry.

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• The ‘Global Excellence and Leadership Award’ in the category of 50 most talented CSR Professionals of India by the World CSR Congress.

G. SUBSIDIARIES OF BANK OF BARODA

Bob has established presence in all the major areas of banking including housing finance, credit cards, asset management and capital market through its various subsidiaries which function in synergy with the Bank. This diversified presence places the Bank in a position to move towards the concept of Universal Banking.

Following are the Domestic Subsidiaries of BoB• BOBCARDS Ltd.

• BOB Capital Markets Ltd.

• Nainital Bank Ltd.

• BOB Housing Finance Ltd.

• BOB Asset Mgmt. Co. Ltd.

BoB has following international subsidiaries

• BOB (Botswana) Ltd.

• BOB (Kenya) Ltd.

• BOB (Uganda) Ltd.

• BOB (Hong Kong) Ltd.

• BOB (Guyana) Inc.

• BOB (UK) Ltd

H. JOINT VENTURES OF BANK OF BARODA

Besides above subsidiaries Bob also has entered into Joint Ventures which are

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Domestic Joint Ventures:

• Baroda Pioneer Asset Management Company Ltd

• India First Life Insurance Company Limited

• Baroda Uttar Pradesh Gramin Bank

• Baroda Rajasthan Gramin Bank

• Baroda Gujarat Gramin Bank

• Nanital -Almora Kshetriya Gramin Bank

• Jhabua-Dhar Kshetriya Gramin Bank

International Joint Ventures:

• Indo-Zambia Bank Ltd. (Lusaka)

• India International Bank Malaysia Berhad

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DATA COLLECTION

FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET OF BoB FOR THE YEAR ENDED 31ST MARCH

2014

Capital and Liabilities: in Rs. Cr.

Total Share Capital 430.68

Equity Share Capital 430.68

Preference Share Capital 0.00

Reserves 37,416.15

Revaluation Reserves 0.00

Net Worth 37,846.83

Deposits 579,997.06

Borrowings 36,976.30

Total Debt 616,973.36

Minority Interest 158.41

Policy Holders Funds 0.00

Group Share in Joint Venture 0.00

Other Liabilities & Provisions 21,135.52

Total Liabilities 676,114.10

Assets in Rs. Cr.

Cash & Balances with RBI 19,444.73

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Balance with Banks, Money at Call 114,910.94

Advances 403,715.37

Investments 122,112.86

Gross Block 2,849.30

Accumulated Depreciation 0.00

Net Block 2,849.30

Capital Work In Progress 0.00

Other Assets 13,080.90

Minority Interest 0.00

Group Share in Joint Venture 0.00

Total Assets 676,114.10

Contingent Liabilities 292,860.91

Bills for collection 17,531.43

Book Value (Rs) 881.36

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CONSOLIDATED PROFIT & LOSS STATEMENT OF BoB FOR THE YEAR ENDED

31 ST MARCH 2014

Incomein Rs. Cr.

Interest Earned 40,462.89

Other Income 5,555.15

Total Income 46,018.04

Expenditure

Interest expended 27,604.43

Employee Cost 4,334.61

Selling and Admin Expenses 0.00

Depreciation 368.11

Miscellaneous Expenses 8,779.66

Preoperative Exp Capitalized 0.00

Operating Expenses 7,592.29

Provisions & Contingencies 5,890.09

Total Expenses 41,086.81

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STAND ALONE CASH FLOW STATEMENT OF BoB FOR THE YEAR ENDED 31 ST

MARCH 2014

in Rs. Cr.

Net Profit Before Tax5497.31

Net Cash From Operating Activities 41016.38

Net Cash (used in)/from Investing Activities -688.70

Net Cash (used in)/from Financing Activities5151.34

Net (decrease)/increase In Cash and Cash Equivalents 45479.01

Opening Cash & Cash Equivalents 85398.90

Closing Cash & Cash Equivalents130877.91

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DATA ANALYSIS

METHODS OF FINANCIAL DATA ANALYSIS

A number of methods can be used for the purpose of analysis of financial statements. These are

also termed as techniques or tools of financial analysis. Out of these, an enterprise can choose

those techniques which are suitable to its requirements. The principal techniques of financial

analysis are:

a. Ratio Analysis

b. Comparative Financial Statements.

c. Trend Analysis.

d. Cash Flow Analysis.

e. Common size Statement.

RATIO ANALYSIS

MEANING:-

Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication

of a firm's financial performance in several key areas. It compares relationships between

financial statement accounts to identify the strengths and weaknesses of a company. Absolute

figures expressed in financial statements by themselves are meaningfulness.

TYPES OF RATIOS:-

Liquidity.

Solvency.

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Profitability

Efficiency

ADVANTAGES OR USES OF RATIO ANALYSIS:-

Ratios are worked out to analyze the following aspects of business organization-

Simplifies the financial statements

Helps in trend analysis

Judging Efficiency and Locating Weakness

Formulating plans

LIMITATION OF RATIO ANALYSIS:-

False accounting data gives false ratios

Comparisons not possible if different firms adopt different accounting policies or operate in

different environmental conditions

Ratio analysis becomes less effective in dynamic environment.

Ratios may be misleading in the absence of absolute data.

CLASSIFICATION OF RATIOS:-

BASED ON FINANCIAL STATEMENT:-

1] Balance sheet ratio.

2] Revenue ratio.

3] Composite ratio.

BASED ON FUNCTION:-

1] Liquidity ratios.

2] Leverage ratios.

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3] Activity ratios.

4] Profitability ratios.

5] Coverage ratios.

RATIO ANALYSIS OF BoB(Consolidated)

PER SHARE RATIOS

Adjusted EPS (Rs.) 114.84

Adjusted Cash EPS (Rs.) 123.41

Reported EPS (Rs.) 116.45

Reported Cash EPS (Rs.) 125.03

Dividend Per Share 0

Operating Profit Per Share (Rs.) 131.21

Book Value (Excl Rev Res) Per Share (Rs.) 881.36

Book Value (Incl. Rev Res) Per Share (Rs.) 881.36

Net Operating Income Per Share (Rs.) 942.28

Free Reserves Per Share (Rs.) 0

PROFITABILITY RATIOS

Operating Margin (%) 13.92

Gross Profit Margin (%) 13.01

Net Profit Margin (%) 10.86

Adjusted Cash Margin (%) 11.51

Adjusted Return On Net Worth (%) 13.02

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Reported Return On Net Worth (%) 13.21

Return On long Term Funds (%) 88.78

LEVERAGE RATIOS

Long Term Debt / Equity 0

Total Debt/Equity 15.32

Owners fund as % of total Source 6.12

Fixed Assets Turnover Ratio 0.06

LIQUIDITY RATIOS

Current Ratio 0.61

Current Ratio (Inc. ST Loans) 0.02

Quick Ratio 20.64

Inventory Turnover Ratio 0

PAYOUT RATIOS

Dividend payout Ratio (Net Profit) 21.67

Dividend payout Ratio (Cash Profit) 20.18

Earning Retention Ratio 78.03

Cash Earnings Retention Ratio 79.56

COVERAGE RATIOS

Adjusted Cash Flow Time Total Debt 109.45

Financial Charges Coverage Ratio 1.41

Fin. Charges Cov. Ratio (Post Tax) 1.19

COMPONENT RATIOS

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Material Cost Component(% earnings) 0

Selling Cost Component 0

Exports as percent of Total Sales 0

Import Comp. in Raw Mat. Consumed 0

Long term assets / Total Assets 0.9

Bonus Component In Equity Capital (%) 0

COMPARATIVE FINANCIAL STATEMENTS

When financial statements figures for two or more years are placed side-side to facilitate

comparison, these are called ‘comparative Financial Statements’.

Such statements not only show the absolute figures of various years but also provide for columns

to indicate to increase or decrease in these figures from one year to another. In addition, these

statements may also show the change from one year to another on percentage form. Such

cooperative statements are of great value in forming the opinion regarding the progress of the

enterprise.

PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE

STATEMENTS:-

i. To make the Data simpler and more understandable.

ii. To indicate the Trend.

iii. To indicate the strong points weak points of the concern.

iv. To compare the firms performance with the average performance of the industry.

v. To help in forecasting.

COMPARATIVE BALANCE SHEET:-

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The Comparative Balance Sheet as on two or more different dates can be prepared to show the

increase or decrease in various assets, liabilities and capital. Such a comparative Balance Sheet is

very useful in studying the trends in a business enterprise.

ADVANTAGES OF COMPARATIVE BALANCE SHEET:-

i. Helpful for comparison.

ii. Helpful for various stakeholders in knowing growth of the company.

COMPARATIVE CONSOLIDATED BALANCE SHEET OF BoB

Particulars Mar '14 Mar '13 Inc/Dec(Rs) Inc/Dec (%)

Capital and Liabilities:

Total Share Capital430.68 422.52 8.16 1.93

Equity Share Capital430.68 422.52 8.16 1.93

Reserves37,416.15 32,859.25 4556.9 13.87

Net Worth37,846.83 33,281.77 4565.06 13.72

Deposits5,79,997.06 4,82,638.89 97358.17 20.17

Borrowings36,976.30 26,552.94 10423.36 39.26

Total Debt6,16,973.36 5,09,191.83 107781.5 21.17

Minority Interest158.41 110.05 48.36 43.94

Other Liabilities & Provisions21,135.52 16,804.67 4330.85 25.77

Total Liabilities6,76,114.12 5,59,388.32 116725.8 20.87

Assets

Cash & Balances with RBI19,444.73 14,151.18 5,293.55 27.22

Balance with Banks, Money at

Call 1,14,910.94 73,550.88 41,360.06 35.9925

Advances4,03,715.37 3,33,625.20 70,090.17 17.36

Investments1,22,112.86 1,25,617.05 -3,504.19 -2.87

Gross Block2,849.30 2,550.43 298.87 10.49

Accumulated Depreciation 0 0 0 0

Net Block2,849.30 2,550.43 298.87 10.49

Other Assets13,080.90 9,893.59 3,187.31 24.37

Total Assets6,76,114.10 5,59,388.33 1,16,725.77 17.26

COMPARATIVE PROFIT & LOSS ACCOUNT:-

• Profit and loss account shows the net profit or net loss of a particular year whereas

comparative profit and loss account for a number of years provides the following

information1.Rate of increase or decrease in gross profit.

• Rate of increase or decrease in operating profit.

• Rate of increase or decrease in cost of goods sales.

• Rate of increase or decrease in net profit.

• Rate of increase or decrease in sales.

COMPARATIVE CONSOLIDATED PROFIT & LOSS STATEMENT

ParticularsMar '14 Mar '13 Inc/Dec(Rs) Inc/Dec (%)

IncomeInterest Earned 40,462.89 36,442.06 4,020.83 11.03Other Income 5,555.15 4,510.62 1,044.53 23.16Total Income 46,018.04 40,952.68 5,065.36 12.37

ExpenditureInterest expended 27,604.43 24,486.41 3,118.02 12.73Employee Cost 4,334.61 3,615.95 718.66 19.87Selling and Admin

Expenses 0 0 0 0

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Depreciation 368.11 321.7 46.41 14.43Miscellaneous Expenses 8,779.66 7,778.14 1,001.52 12.88Operating Expenses 7,592.29 6,306.36 1,285.93 20.39Provisions &

Contingencies 5,890.09 5,409.43 480.66 8.89Total Expenses 41,086.81 36,202.20 4,884.61 13.49

Net Profit for the Year 4,931.24 4,750.48 180.76 3.81Minority Interest 35.68 24.79 10.89 43.93Share Of P/L Of

Associates -105.17 -78.54 -26.63 33.91Net P/L After Minority

Interest & Share Of

Associates 5,000.73 4,804.23 196.50 4.09Profit brought forward 281.19 178.73 102.46 57.33Total 5,212.43 4,929.21 283.22 5.75Equity Dividend 1,083.68 1,059.63 24.05 2.27Earning Per Share

(Rs) 114.84 112.77 2.07 1.84Book Value (Rs) 881.36 790.06 91.30 11.56Transfer to Statutory

Reserves 3,782.39 3,642.14 140.25 3.85Proposed Dividend/

Transfer to Govt 1,083.68 1,059.63 24.05 2.27Balance c/f to Balance

Sheet 415.85 281.19 134.66 47.89Total 5,281.92 4,982.96 298.96 6.00

TREND ANALYSIS

Trend analysis are very useful is making comparative study of the financial statements for a

number of years. These indicate the direction of movement over a long time and help an analyst

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of financial statements to form an opinion as to whether favorable or unfavorable tendencies

have developed. This helps in future forecasts of various items.

KEY BUSINESS ANALYSIS

Total assets and total asset turnover ratio

As we can see in below graph, the Total Assets have increased gradually over the year.

The Asset Turnover ratio is an indicator of the efficiency with which a company is deploying its assets. It measures the ability of a company to use its assets to efficiently generate sales.

This ratio considers all assets, current and fixed. Those assets include fixed assets, like plant and equipment, as well as inventory, accounts receivable, as well as any other current assets.

The higher the ratio indicates that the company is utilizing all its assets efficiently to generate sales. Companies with low profit margins tend to have high asset turnover.

As we can see that the Asset turnover ratio is steady between 0.06 to 0.08 over last 5 years, it increased in 2011 and 2012 and dipped back in 2013 only to remain steady in 2014.

Profit Before Tax(PBT) and Profit After Tax(PAT)

Just like Asset Turnover ratio the Profit increased steadily in 2011&2012 only to fall in 2013.

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The graph visually shows how the net profit of the company stand reduced due to the impact of Tax.

Net Interest income

It is the difference between interest payments the company receives on loans outstanding and interest payments the company makes to customers on their deposits. The same has gradually increased over the last 5 years.

Networth

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Networth is the difference between a company's total assets and its total liabilities. It is also known as shareholder`s equity.

As we can see, the same has gradually increased over the year

Dividend

Dividend is a payment made by a company to its shareholders usually as a distribution of profits. When a company makes profit it can either re-invest it in the business or it distributes it to its shareholders by way of dividends. The dividend payout ratio is the amount of dividends paid to shareholders relative to the amount of total net profit of a company.

As we can see Equity Dividend has increased over the period. As Net profit reduced in 2013 and Dividend increased resulting in steep rise in equity dividend ratio.

Book Value

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Book value is a company's assets minus its liabilities. In simple terms it would be the amount of money that a share holder would get if a company were to liquidate.

Book value appeals more to value investors who look at the relationship to the stock's price by using the Price to Book ratio.

As we can see the same has increased gradually over the year which is good sign.

Deposit and Advance

Deposits are liability to banks, which need money to lend. It is the amount kept with the bank subject to some regulatory compliance. In turn, banks pay interest on deposits. It is considered the safest form of investment. Deposits are of two types current and savings deposits (CASA) as well as term deposits.

Advance is the amount that banks lend to individuals and companies. They charge interest on loans. Interest rates vary depending on the terms and conditions of such credit. Banks raise money to lend through different sources like deposits, money market and so on.

The difference between credit and deposits is expressed as CD ratio in banking parlance. Neither an extreme lower nor higher CD ratio is good for banks. Generally, a high CD ratio means credit growth is higher than deposit growth. Alternatively, it also suggests, banks may be hiring more from debt market than deposits. A lower CD ratio means, deposit growth is higher than credit expansion.

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As we can see in below graph both Deposit and Advances have increased gradually with difference remaining more or less the same.

Capital Adequacy Ratio

Capital Adequacy Ratio (CAR) is the measure of a bank's capital and expressed in percentage term. In simple terms, this capital is set aside by banks to protect depositors. A lower CAR means a bank is prone to the risk of going burst in case of any crisis. However, a very high CAR means, the bank is not doing enough business.

As we can see that CAR of bank has reduced in last 2 year which means its expanding its business.As of Mar-14 its steady at 12.28%

Asset Quality

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As we can see the % of NPA have increased over the years implying risk for the bank but despite of this fact the overall NPA% remains one of the least in the PSU banks.

Shareholding Pattern

(As on 31st March'14)

FINDINGS AND SUGGESTIONS

COMMENTS

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• BUSINESS

Total Business (Deposit+Advances) increased to Rs 9,65,900 crore reflecting a growth of

20.43% (y-o-y) supported by 20.1% in global deposits and 21.0% growth in global

advances despite sluggish economic environment.

Global Advances (Net)

Particulars (Rs crore)

End March 2013

End March 2014

Growth (%)

Advances 3,28,185.77 3,97,005.81 20.97- Domestic 2,24,294.33 2,72,168.96 21.34- Overseas 1,03,891.44 1,24,836.85 20.16

Global Deposits

Particulars (Rs crore)

End March 2013

End March 2014

Growth (%)

Deposits 4,73,883.34 5,68,894.39 20.05- Domestic 3,41,705.59 3,79,054.04 10.93- Overseas 1,32,177.74 1,89,840.35 43.62

Credit-Deposit Ratio stood at 86.15% as against 82.03% last year.

Retail Credit posted a growth of 20.96% constituting 16.6% of Bank’s Gross Domestic

Credit in FY14.

• PROFITABILITY:-

Gross Profit and Net Profit were Rs 9,291 crore and Rs 4,541 crore respectively. Net Profit

registered a growth of 1.35% over the previous year.

Bank earned a Profit after Tax (PAT) of Rs 4,541.08 crore after deducting Rs 1,386.68

crore of unallocated expenditure and Rs 956.23 crore towards provision for tax.

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An amount of Rs 3,457.40 crore was transferred to reserves from the profits earned.

Stand alone total income during FY’14 rose by 11.78 % to Rs. 43402 crore due to a growth

of 10.63% in Interest Income.

• ASSET QUALITY:-

The ratio of Gross NPA to Gross Advances was at 2.94%.

Net NPAs to Net Advances stood at 1.52% this year against 1.28% last year.

Both the Gross NPA as well as Net NPA are one of the lowest in the large-sized public

sector banking space.

The cash recovery in NPA accounts during FY14 was Rs 1,261.81 crore, higher than the

cash recovery of Rs 625.57 crore during FY13

As a part of strategy suggested by the RBI for NPA management, Bank sold 23 NPL (NPA

& Write Off accounts) accounts with aggregate outstanding balance of Rs 671.27 crore to

four ARCs

The “asset classification-wise” breakup of advances portfolio is as under.

Asset Category (Gross)

31st March 2014

31st March 2013

Standard 3,91,823.53 3,24,828.74Gross NPA 11,875.90 7,982.58Total 4,03,699.43 3,32,811.32

Gross NPA are further comprised of

Sub-standard 3,809.20 4,981.15Doubtful 6,863.10 2,628.33Loss 1,203.60 373.1Total Gross NPA 11,875.90 7,982.58

Provision Coverage ratio also improved to 65.45% in Mar’14 from 61.68% in

Sep’13,however the same was less than mandated norm of 70% set by the RBI due to a

steep rise in NPAs and higher provisioning.

• COMMENTS ON RATIOS:-

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Net Interest Margin (NIM) as per cent of interest earning assets in global operations was at

the level of 2.36% and in domestic operations at 2.87% during FY14.

Healthy mobilization of domestic CASA deposits at the rate of 16.0% (y-o-y) and shedding

of high-cost preferential deposits were the reasons of the same.

Return on Average Assets stood at 0.75% for FY’14.

Cost of Deposit stood at 5.38% for Mar’14 as against 5.80 for Mar’13

Cost Income ratio stood at 43.44 % in Mar’14 as compared to 39.79 for Mar’13

Return on Net worth stood at 13.00% for Mar’14 as against 14.59 for Mar’13

Earnings Per Share was Rs.107.38 in Mar’14 and Rs.108.84 in FY ended Mach’13.

Book Value per Share improved to Rs 813.50 in March’14 as against Rs.729.11 in

March’13.

CRAR of the bank was comfortable at 12.88% under BASEL-II (Tier-I Capital: 9.54%;

Tier-II Capital: 3.34%) which reflects the capital strength of the bank.

Book value of Share is consistently increasing over Years .

Bank’s international business too grew at a stronger pace of 33.3% (y-o-y), partly driven by

massive rupee depreciation during FY14.

Business per Employee moved up from Rs 16.89 crore to Rs18.65 crore on year by year

basis.

Business per Branch moved up from Rs 184.98 crore to Rs 195.76 crore on year by year

basis.

• PRIORITY SECTOR & MSME ADVANCES:-

Bank has always been a frontrunner in the area of Priority Sector and Agriculture lending

through its wide network of 1,781 rural branches and 1,267 semi-urban branches.

Priority Sector Advances of your Bank surged from Rs 80,003 crore as on March 2013 to

Rs 90,488 crore as on March 2014 and formed 40.02% of the Adjusted Net Bank Credit

(ANBC) against the mandated target of 40.00%.

The MSME advances of Rs 56,634 crore as of end-Mar 2014 reflected a growth of Rs

9,912 crore (21.21%) over the MSME advances in the previous year

MSME Credit posted a growth of 21.21% constituting 20.3% of Bank’s Gross Domestic 36

Credit in FY14.

Under its flagship agriculture loan product “Baroda Kisan Credit Card (BKCC)”, Bank

issued as many as 2,47,796 Credit Cards during FY14 to provide credit to farmers across

India. Baroda Kisan RuPay Card, an ATM enabled smart Card, has been issued to 3,30,257

BKCC holders for their convenience.Bank financed as many as 2,95,743 new farmers

during FY14 granting them loans worth Rs 4,505.55 crore.

As a part of its microfinance initiatives, your Bank credit linked 11,908 Self Help Groups

by granting loans amounting to Rs 198.03 crore during FY14.

Through Baroda Swarojgar Vikas Sansthans (BSVS) ,Bank has also been giving due

preference to SC/ST communities while selecting the trainees.

• INTERNATIONAL FORAYS:-

Bank retained its market position as one of the leading Indian banks in providing services

to the customers across the globe.

Bank further spread its presence in UAE, Tanzania and Uganda by opening an additional

branch in each of these three countries.

Bank’s international presence covers 24 countries through its 102 branches/offices as

under:

Particular NumberBank’s Overseas Branches/ Offices 60Bank’s Representative Offices 1Branches of Bank’s Overseas Subsidiaries 41TOTAL 102

The Bank also has following Joint Ventures/ Associates:

1. Indo Zambia Bank Ltd., Zambia having 25 branches.

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2. India International Bank (Malaysia) Bhd., Malaysia having one branch.

During FY14, Bob opened three new overseas branches/offices. An Electronic Banking

Service Unit at Shabiya, UAE was also made operational during the year.

2 branches of the subsidiaries were opened at Kariakoo in Tanzania and Kololo in Uganda.

Bank has further plans for expansion in upcoming centers in the countries where Bank is

already present. Bank also has plans to enter new countries offering opportunities for

profitable growth of business.

Necessary infrastructure is being created for further expanding the network in UAE, UK,

Kenya, Tanzania and Ghana.

Internet banking (Baroda Connect) is implemented in 14 overseas territories/ subsidiaries.

viz 1.UAE, 2. United Kingdom 3. Oman, 4. Mauritius, 5. Fiji 6.Seychelles, 7. Australia

(View) 8.Kenya, 9.Uganda, 10.Botswana, 11.New Zealand, 12. Ghana. 13. Tanzania (View

Based) 14. USA (View Based). The USA territory has been added in this financial year and

internet banking implementation is in progress for Trinidad & Tobago and Guyana

Subsidiaries and will be made live in the next financial year.

Implementation for sending SMS alert for all transaction is in progress for six territories/

subsidiaries. (Fiji, Guyana, Uganda, Botswana, China, and Kenya).

Bank’s Global Syndication Centre at London and Regional Syndication Centres at Dubai

and Singapore specially focus on the business of Syndication Loans in International

Market. Your Bank has also set up an International Merchant Banking Cell (IMBC) at

Corporate Office, Mumbai, which mainly caters to the requirements of Indian corporates

and also supports the regional syndication centres to canvass business from Indian

corporates who are in need of foreign currency resources.

International Operations contributed a sizeable 32.6% to Bank’s global business.

SUGGESTIONS

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• The bank should adopt a procedure of obtaining details of loans from other banks before

sanctioning credit, Bob should insist on a clearance certificate stating that no loan is overdue

to any bank of institution.

• The Bob should also reach out to the corporate client for financing their working capital and

other requirement.

• Bank must try to reduce its NPA as there is steep rise in Doubtful and Loss Category of

NPA. Efforts should be made to organize an effective credit collection department.

• There is an increase in deposit in BoB so it must take necessary steps to increase the

percentage of profit by increasing lending to corporate and big clients..

• BoB must increase the percentage of loan amount on the fixed deposits.

• BoB should take an initiative to achieve their future goals and plans.

• Capacity Building is another area where BoB has to invest significantly.

• Provision Coverage ratio needs to be improved.

CONCLUSION

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Bank of Baroda was recognized by Dun & Bradstreet as the Best Public Sector Bank under the

category ‘Global Business Development’ at Polaris Financial Technology Banking Awards

2013.. Bank won a Special Award for Best IT Team among Public Sector Banks at IDRBT

Banking Technology Excellence Awards 2012-13. Bank has been pioneer in spreading and

promoting the use of Hindi through the forum of Nagar Rajbhasha Samitis and has won Reserve

Bank Rajbhasha Competition on Aug-13.

Bank constantly innovates, reorients strategies and realigns business processes with advanced

technology to serve the customers better and earn strong brand. The Bank has identified “RACE

AHEAD” as its motto for the FY15 and it can not only achieve a significant business growth but

also improve its profitability and soundness indicators. With GDP growth expected to pick up,

banking business is likely to witness higher optimism during FY15.

BoB has always looked at technology as a key facilitator to provide better customer service and

ensured that its ‘IT strategy’ follows the ‘Business strategy’ to serve all stakeholders. To respond

to increasing competition and other challenges, Bank will make its business model more cost-

efficient and try to improve its Earnings through an optimum mix of interest income and non-

interest income. To achieve this, it will constantly optimise the use of technology as the change

agent. Boosted by robust economic growth, the bank expects to sustain and improve its

performance. Similar to its efforts to improve Asset Quality management in FY14, your Bank

will focus on credit monitoring, NPA recovery and up-gradation in a big way and further arrest

the fresh slippages. Bank proposes to launch ‘Adarsh Grameen Branches’ shortly. These

branches will be constructed by Bank on its owned plot of land in rural areas and will include

branch premises, manager’s residence and assembly areas. The assembly area will be having

audio-visual facilities to enable various activities like agri-clinic, vocational education, medical

camp etc. This endeavor will not only provide BoB to take forward the mission of Financial

Inclusion, but also generate a lot of goodwill. With its intrinsic strengths in the form of capital,

human resources, technology and iconic brand, Bob is well positioned for growth during FY15.

BIBLIOGRAPHY

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• Annual report of Bank of Baroda for 2014

• www.bankofbaroda.co.in

• www.moneycontrol.com

• www.wikipedia.com

• www.profit.ndtv.com

• www. money.rediff.com

• www.economictimes.indiatimes.com

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