BANK OF BARODA 1.1 INTRODUCTION OF BANK OF BARODA Bank of Baroda is one of the most prominent banks in India, having its total assets as Rs. 1, 43,146 Crores as on 31st of March 2007. The bank was founded by Maharaja Sayajirao Gaekwad III (also known as Shrimant Gopalrao Gaekwad), the then Maharaja of Baroda on 20th of July 1908 with a paid capital of Rs. 10 Lacs. From its introduction in a small building of Baroda, the bank has come a long way to achieve its current position as one of the most important banks in India. On 19th of July 1969, Bank of Baroda was nationalized by the Government of India along with 13 other commercial banks. 1
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BANK OF BARODA
1.1 INTRODUCTION OF BANK OF BARODA
Bank of Baroda is one of the most prominent banks in India, having its total
assets as Rs. 1, 43,146 Crores as on 31st of March 2007. The bank was
founded by Maharaja Sayajirao Gaekwad III (also known as Shrimant
Gopalrao Gaekwad), the then Maharaja of Baroda on 20th of July 1908 with
a paid capital of Rs. 10 Lacs. From its introduction in a small building of
Baroda, the bank has come a long way to achieve its current position as one
of the most important banks in India. On 19th of July 1969, Bank of Baroda
was nationalized by the Government of India along with 13 other
commercial banks.
The bank offers a wide array of customized and specialized services to meet
the diverse needs of its customers, and these services have been categorized
into Personal Banking, Business Banking, Corporate Banking, International
Banking, Treasury Banking and Rural Banking services
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BANK OF BARODA
1.2 DEFINITION & MEANING OF BANK
BANK DEFINITION:
A financial institution that is licensed to deal with money and its substitutes
by accepting time and demand deposits, making loans, investing in
securities. The bank generates profits from the difference in the interest rates
charged and paid.
MEANING OF BANK:
A bank is a financial institution licensed by a government. Its primary
activities include borrowing and lending money. Many other financial
activities were allowed over time. For example, banks are important Players
in financial markets and offer financial services such as investment funds. In
some countries such as Germany, banks have historically owned major
stakes in industrial corporations while in other countries such as the United
States banks are prohibited from owning non-financial companies. In Japan,
banks are usually the nexus of a cross-share holding entity known as
thezaibatsu. In France, banc assurance is prevalent, as most banks offer
insurance services (and now real estate services) to their clients.
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1.3 HISTORY OF BANK OF BARODA
1990s
1990: BoB opened an OBU in Mauritius, but closed its representative
office in Sydney.
1991: BoB took over the London branches of Union Bank of India
and Punjab & Sind Bank (P&S). P&S’s branch had been established
before 1970 and Union Bank’s after 1980. The Reserve Bank of India
ordered the takeover of the two following the banks' involvement in
the Sethia fraud in 1987 and subsequent losses.
1992 BoB incorporated its operations in Kenya into a local subsidiary
with a small tranche of shares quoted on the Nairobi Stock Exchange.
1993: BoB closed its OBU in Bahrain.
1996: BoB Bank entered the capital market in December with an
Initial Public Offering (IPO). The Government of India is still the
largest shareholder, owning 66% of the bank's equity.
1997: BoB opened a branch in Durban.
1998: BoB bought out its partners in IUB International Finance in
Hong Kong. Apparently this was a response to regulatory changes
following Hong Kong’s reversion to the People’s Republic of China.
BoB also acquired Punjab Cooperative Bank in a rescue.
1999: BoB merged in Bareilly Corporation Bank in another rescue. At
the time, Bareilly had 64 branches, including four in Delhi.
In Guyana, BoB incorporated its branch as a subsidiary, Bank of
Baroda Guyana.
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BoB added a branch in Mauritius, but closed its Harrow Branch in
London.
2000s
2000: BoB established Bank of Baroda (Botswana).
2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank
of India’s request. BSB was established in 1946 but traced its origins
back to 1871 and its function as the treasury office of the Benares
state. In 1964, BSB had acquired Bareilly Bank (est. 1934), with
seven branches; it also had taken over Lucknow Bank in 1968. The
acquisition of BSB brought BOB 105 new branches.
2002: Bank of Baroda (Uganda) was listed on the Uganda Securities
Exchange (USE).
2003: BoB opened an OBU in Mumbai.
2004: BoB acquired the failed Gujarat Local Area Bank, and returned
to Tanzania by establishing a subsidiary in Dar-es-Salaam. BoB also
opened a representative office each in Kuala Lumpur, Malaysia, and
Guangdong, China.
2005: BoB built a Global Data Centre (DC) in Mumbai for running its
centralized banking solution (CBS) and other applications in more
than 1,900 branches across India and 20 other counties where the bank
operates. BoB also opened a representative office in Thailand.
2006: BoB established an Offshrore Banking Unit (OBU) in
Singapore.
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2007: In its centenary year, BoB’s total business crossed 2.09 lakh
crores, its branches crossed 1000, and its global customer base 29
million people.
2008: BoB opened a branch in Guangzhou, China (02/08/2008).
2008: BoB opened a joint venture life insurance company with
Andhra Bank and Legal and General (UK) called IndiaFirst Life
Insurance Company
2009: The Bank of Baroda registered with the Reserve Bank of New
Zealand, enabling it to trade as a bank in New Zealand (2009/09/01)
2010
2010: Malaysia awarded a commercial banking license to a locally
incorporated bank to be jointly owned by Bank of Baroda, Indian
Overseas Bank and Andhra Bank.
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1.4 DEPOSITS OFFERED BY BANK OF BARODA:
1. FIXED DEPOSITS
TYPES OF FIXED DEPOSITS:
Short Deposits
A Scheme for High Return on your savings even for a short period of
less than 1 year. An ideal option for all transitory savings to meet the
requirements. An ideal option for all transitory savings.
Overdraft / loan against deposit provided on demand upto 95% of
deposit amount without any guarantor and processing fee, filling of
any forms etc. even for 1 day and upto the maturity period of deposits
to meet short term requirements and needs.
For such advances interest shall be charged 1.5% over the deposit rate
with monthly rests in case of depositor -borrower and in case your
friends want to avail loan against your deposit the rate of interest will
be a little higher depending on loan amount.
Accepted as a Security by Govt. Deptt.
Accepted as margin for Non-fund based facilities.
Nomination facility is available.
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Baroda Fast Access Deposit Scheme
Bank of Baroda's Fast Access Deposit is a prudent way to security, liquidity
and relief. The plan provides you with the facility of overdrawing your
account up to 95% of your deposits.
Join this deposit product with a minimum deposit of Rs. 10,000/-
Add to this, in multiples of Rs. 1,000/- (under RIRD plan)
Key Benefits
Loan/Overdraft facility up to 95% of the deposit amount right from
day one.
No additional documentation for availing overdraft.
An additional 0.50% interest for senior citizens.
Provision for nomination.
Terms & Conditions
Minimum amount required to open an account - Rs. 10,000/-.
Subsequent deposits in multiples of Rs. 1000 (under RIRD plan).
Deposit Tenure:
o Minimum - 12 months.
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o Maximum - 120 months.
Interest will be compounded quarterly depending upon the maturity
period of the deposit.
No penalty for premature payment will be levied in case of premature
payment of deposits up to Rs. 5 Lakhs provided it remained with the
Bank for a minimum period of 12 months.
On pre-matured withdrawal of your deposits amount, interest will be
calculated at 1% below the rate applicable for the period of deposits.
Interest payments are subject to TDS (Tax Deducted at Source).
Opening of a current account is mandatory.
BOB Suvidha Fixed Deposit Scheme
A product is offering a combination of competitive interests as well as easy
liquidity. A convenient way of utilizing your deposits giving you the best of
both, long-term as well as short-term deposit plans.
Key Benefits:
A highly flexible product, which works to your needs, always.
Offers dual advantage of attractive rate of interest as well as flexible
withdrawal limit.
Provision for nomination.
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BANK OF BARODA
Regular Income Plan
Your deposits bring regular income i.e. monthly/quarterly/half yearly/yearly
and supplement your earnings.
Key Benefits:
This plan does not demand any extra formalities, as concerns
overdrafts and withdrawals, hence enabling you to withdraw as much
as 95% of the deposit amount.
Provides you the comfort of liquidity along with a security of your
money being in safe hands.
An additional 0.50% interest for senior citizens (applicable only for
deposits of Rs. 10000/- and above).
Provision for nomination.
Terms & Conditions:
Deposit account can be opened with minimum amount of Rs. 1,000/-
and subsequent deposits in multiples of Rs.100/-.
Minimum period of deposit is 12 months, extending to a maximum of
120 months.
Interest on your deposit credited on quarterly basis.
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BANK OF BARODA
No penalty for premature payment will be levied in case of premature
payment of deposits up to Rs. 5 Lakhs provided it remained with the
Bank for a minimum period of 12 months.
On pre-matured withdrawal of your deposits amount, interest will be
calculated at 1% below the rate applicable for the period of deposits.
Interest payments are subject to TDS (Tax Deducted at Source).
Monthly Income Plan
The Monthly Income Plan is tailored for those individuals who regularly
need money to supplement their income i.e. each month. Interest earned on
your deposit becomes another source of income.
Key Benefits:
This plan does not demand any extra formalities, as concerns
overdrafts and withdrawals, hence enabling you to withdraw as much
as 95% of the deposit amount.
Provides you the comfort of liquidity along with a security of your
money being in safe hands.
An additional 0.50% interest for senior citizens (applicable only for
deposits of Rs. 10000/- and above).
Provision for nomination.
Terms & Conditions:
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Deposit account can be opened with minimum amount of Rs. 1,000/-
and subsequent deposits in multiples of Rs.100/-.
Deposit Tenure:
o Minimum - 12 months.
o Maximum - 120 months.
Interest will be paid on monthly basis at discounted rate.
No penalty for premature payment will be levied in case of premature
payment of deposits up to Rs. 5 Lakhs provided it remained with the
Bank for a minimum period of 12 months.
On pre-matured withdrawal of your deposits, interest will be
calculated at 1% below the rate applicable for the period of deposits.
Interest payments are subject to TDS (Tax Deducted at Source).
Regular Income cum Recurring Deposit
Enjoy an increasing rate of interest with longer periods of deposit.
Compound interest ensures that your savings grow faster. The plan provides
you with the facility of overdrawing your account by way of a pre-issued
cheque of up to 95% of your deposits.
Key Benefits:
This plan does not demand any extra formalities, as concerns
overdrafts and withdrawals, hence enabling you to withdraw as much
as 95% of the deposit amount.
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BANK OF BARODA
Provides you the comfort of liquidity along with a security of your
money being in safe hands.
An additional 0.50% interest for senior citizens (applicable only for
deposits of Rs. 10000/- and above).
Provision for nomination.
Terms & Conditions
Deposit account can be opened with minimum amount of Rs. 1,000/-
and subsequent deposits in multiples of Rs.100/-.
Deposit Tenure:
o Minimum - 12 months.
o Maximum - 120 months.
Interest will be compounded quarterly & credited to your account half
yearly.
No penalty for premature payment will be levied in case of premature
payment of deposits up to Rs. 5 Lakhs provided it remained with the
Bank for a minimum period of 12 months.
On pre-matured withdrawal of your deposits, interest will be
calculated at 1% below the rate applicable for the period of deposits.
Interest payments are subject to TDS (Tax Deducted at Source).
Capital Gain Account Scheme, 1988
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BANK OF BARODA
The Capital Gain Account Scheme primarily helps you avail of tax
exemptions from capital gains. It offers two types of accounts- Savings and
Term Deposits.
Key Benefits:
Tax exemption under section 54(F)(4) of Income Tax Act 1961.
Provision for nomination
Terms & Conditions:
Interest rates as per Savings Deposits/Term Deposits.
Interest payments are subject to TDS (Tax Deducted at Source).
Term Deposits
Enjoy an increasing rate of interest with longer periods of deposit. Your
money remains safe and secure with an option of easy liquidity.
Key Benefits
Loan/Overdraft facility up to 95% of the deposit amount
additional to the accrued interest thereon (nature of requirement
will not be a factor for withdrawal).
For such loans interest shall be charged 1.50% to 1.75%
(Depending on amount of loan) over the deposit rate with
monthly rest in case of depositor -borrower and in case of others
the rate of interest will be a little higher depending upon loan
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BANK OF BARODA
amount. Interest rate on Loan against deposits of Senior Citizens
shall be charged at 1.25% over deposit rate.
No processing fees will be charged for Loans and Advances
against bank deposits.
The Govt. of India accepts the money deposited in this plan as a
security.
Deposits can be accepted as the margin money for non-fund
based facilities.
No penalty for premature payment will be levied in case of
premature payment of deposits up to Rs. 5 Lakhs provided it
remained with the Bank for a minimum period of 12 months.
On pre-matured withdrawal of your deposits, interest will be
calculated at 1% below the rate applicable for the period of
deposits.
Facility for auto renewal of your deposit, in case such instructions
haven't been received for the same. This ensures that you don't
lose out on interest.
Provision for nomination
Baroda Tax Savings Term Deposit Account .
Eligible Persons:
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All individuals and HUF are eligible to invest in the product. It is
most suitable for income tax payers like salaried persons, higher and
middle-income group, retired persons etc.
Deposit can be made in single name of an individual for himself or in
the name of the Karta of the HUF OR in joint name.
Joint account may be in the name of maximum two adults or jointly to
an adult and a minor. As per Government’s present Guidelines, in
case of joint account/ joint holding of deposit, income tax relief will
be available only to the first holder of the deposit.
The firms, companies, trust, societies, clubs, institutions, corporate
etc. are not allowed to invest under the product.
Period of the deposit:
Minimum 5 years with a maximum tenure up to 10 years.
Minimum & Maximum Amount:
Minimum amount shall be Rs. 100/- & in multiples of Rs. 100/- .
For availing Tax benefit maximum amount in a financial year - Rs. 1/-
lakh.
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2. CURRENT ACCOUNT
Current Deposits product is ideal for firm, companies, institutions, HUF,
individuals etc., who need banking facility more frequently. This is one of
the most basic and flexible deposit options, allowing transaction without
limiting the numbers.
You may choose from:
Baroda Advantage Current Account
Baroda Premium Current Account (BPCA)
Baroda Premium Current Account-Privilege (BPCAP)
3. TYPES OF SAVING ACCOUNT
Baroda Savings Account
Depending on the nature of the account and the governing terms and
conditions, Bank of Baroda offers you under Savings Accounts.
Click each product for more information.
Baroda Centenary Savings Account
Savings Bank Account
Super Savings Account
Nagrik Bachat Khata
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BANK OF BARODA
Baroda Salary Advantage Saving Account
Baroda Bachat Mitra
Baroda Centenary Savings Account:
Baroda Centenary Savings Account a Superior Savings Bank a/c with added
value propositions. This product is available at all CBS branches in India.
Key Benefits:
Auto sweep: Auto transfer of funds exceeding certain fixed amount to
Term Deposit to provide high yield on such funds.
Auto reverse sweep in case of need to honour Cheque to Savings
account from Term Deposit.
Free collection of outstation cheques drawn in favour of account
holder (postage out of pocket expenses are recoverable).
IMMEDIATE CREDIT of outstation cheques upto Rs.25, 000/-, as
per norms.
FREE DEBIT CARD.
Savings Bank Account
Key Benefits
Simplest deposit option available to the depositor.
Easy to operate. Terms and conditions kept lucid to facilitate a
layman's understanding. No hidden costs.
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Zero balance facility – Your Savings Bank Account with us remain
alive even when the balance reaches zero. This facility is only for
salaried employees in Central/ State Govt. Public & Private Limited
Companies, Agents of Life & General Insurance Corporations and
Students. Even for those receiving compensation from govt. for
acquisition of their properties.
Your deposits are insured by DICGC
Option for money withdrawal by withdrawal forms or by cheque.
An ideal option to cultivate the habit of banking and saving amongst
the younger generation.
Provision for nomination.
Super Savings Account
The product is in the nature of superior Savings Bank Account with added
value propositions to high value resident customers. The product is available
at our computerized branches at Metro and Urban centers only.
Key Benefits
No charges for issuance of Demand Drafts (drawn on Indian
branches) / Banker's Cheques to meet personal needs of the
customers.
Free transfer of funds to any branch of our bank by Mail Transfers /
Telegraphic Transfers (usual telegram charges to be recovered).
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Free collection of outstation cheques drawn in favour of a/c holder.
Auto / Reverse Sweep: Auto transfer of funds exceeding certain fixed
amount to short deposit and auto retransfer to the account from short
deposit, in case funds are required in the account to bring you higher
interest with high liquidity.
Nagrik Bachat Khata
The Indian economy has undergone a significant transformation since the
economic reforms in 1991 with the banking sector in the forefront. Nagrik
Bachat Khata is a product through which Bank of Baroda intends to extend
its services to a vast section of population by making banking easy and
convenient.
Key Benefits:
Services designed to cater to a vast majority of Indian population
Banking simplified
Open account with an initial amount of just Rs. 50/-
Zero service charges for non-maintenance of a minimum balance of
Rs. 50/-
Terms & Conditions:
Who can open the account:
All resident individuals who are eligible to open Savings Bank
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Account avail of this offering in single or joint names. This product is
not for Non Resident Indians, Trusts, Societies, etc.
Minimum amount:
Rs. 50/- at all centers (Metro/Urban/Semi Urban/Rural). No service
charges for non-maintenance of minimum balance
Maximum amount:
There is no ceiling on the amount deposited/held in the account.
However, in case of minors (between 10 and 14 years), maximum
amount cannot exceed Rs. 1 lakh
Account can be operated by the customers using withdrawal slip along
with pass book only.
A cheque book of -10- leaves will be issued on request for one year
free of cost.
Number of withdrawals not to exceed thrice in a month.
Baroda Salary Advantage Saving Account
Bank of Baroda now has a special salary account with added benefits. It's a
saving bank account with an in built feature of overdraft facility to the
salaried persons.
Key Benefits
Overdraft facility available upto Rs 1 lakh.
Earn interest on credit balance account as per saving bank a/c rules.
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Free Chequebooks for routine requirement.
No minimum balance requirement in the account.
No ceiling on the amount to be deposited and credit balance in the a/c.
Terms & Conditions
This account can be availed by regular employees of state/central