History of Bank of Baroda

Bank of Baroda is the third largest bank in India, after the State
Bank of India and the Punjab National Bank and ahead of ICICI Bank.
BoB has total assets in excess of Rs. 2.27 lakh crores, or Rs. 2,274
billion, a network of over 3,000 branches and offices, and about 1,100
ATMs. IT plans to open 400 new branches in the coming year. It
offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels
and through its specialized subsidiaries and affiliates in the areas of
investment banking, credit cards and asset management. Its total
business was Rs. 4,402 billion as of June 30.

As of August 2010, the bank has 78 branches abroad and by the end
of FY11 this number should climb to 90. In 2010, BOB opened a
branch in Auckland, New Zealand, and its tenth branch in the United
Kingdom. The bank also plans to open five branches in Africa.
Besides branches, BoB plans to open three outlets in the Persian
Gulf region that will consist of ATMs with a couple of people.

The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the

bank on 20 July 1908 in the princely state of Baroda, in Gujarat. The
bank, along with 13 other major commercial banks of India, was
nationalized on 19 July 1969, by the government of India.
 Company Profile of

Type Public (BSE: 532134)

Banking
Industry Financial services
Investment services
Founded 1908
Bank of Baroda,
Baroda Corporate Centre,
Headquarters Plot No - C-26, G - Block,
Bandra Kurla Complex,
Mumbai India
M D Mallya
Key people
(Chairman & MD)
Finance and insurance
Consumer banking
Corporate banking
Investment banking
Products Investment management
Private banking
Private equity
Mortgages
Credit cards

Revenue 19,423.25 crore (US$4.31 billion)

Total assets 3,058.33 crore (US$678.95 million)

Website www.bankofbaroda.com
 MD Mallya
(Chairman & Managing Director of Bank of Baroda)
 Historical Milestone of

1908-1959

• 1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda

(BOB).
• 1910: BoB established its first branch in Ahmedabad.
• 1953: BoB established a branch in Mombasa and another in
Kampala.
• 1954: BoB opened a branch in Nairobi.
• 1956: BoB opened a branch in Dar-es-Salaam.
• 1957: BoB established a branch in London.
• 1959: BoB acquired Hind Bank.

1960s

• 1961: BoB merged in New Citizen Bank of India. This merger

helped it increase its branch network in Maharashtra.

BOB also opened a branch in Fiji.

• 1962: BoB opened a branch in Mauritius.

• 1963: BoB acquired Surat Banking Corporation in Surat,
Gujarat.
• 1964: BoB acquired two banks, Umbergaon People’s Bank in
southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu
state.
• 1964: BoB lost its branch in Narayanjanj (East Pakistan) due to
the Indo-Pakistan war. It is unclear when BOB had opened the
branch.
• 1965: BoB opened a branch in Guyana.
• 1967: The Tanzanian government nationalized BoB’s three
branches there and transferred their operations to the
Tanzanian government-owned National Banking Corporation.
• 1969: The government of India nationalized 14 top banks,
including BoB.
 BoB incorporated its operations in Uganda as a 51%
subsidiary, with the government owning the rest.

1970s

• 1972: BoB acquired The Bank of India’s operations in Uganda.

• 1974: BoB opened a branch each in Dubai and Abu Dhabi.
• 1975: BoB acquired the majority shareholding and
management control of Bareilly Corporation Bank (est. 1928)
and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since
then, Nainital Bank has expanded to Uttarakhand State.
• 1976: BoB opened a branch in Oman and another in Brussels.
The Brussels branch was aimed at Indian firms from Mumbai
(Bombay) engaged in diamond cutting and jewellery having
business in Antwerp, a major center for diamond cutting.
• 1978: BoB opened a branch in New York and another in the
Seychelles.
• 1979: BoB opened a branch in Nassau, the Bahamas.
• 1977: BoB Opened a branch in imphal

1980s

BoB opened a branch in Bahrain and a representative office in

Sydney, Australia.
BoB, Union Bank of India and Indian Bank established IUB
International Finance, a licensed deposit taker, in Hong Kong.
Each of the three banks took an equal share.

• 1985: BoB (20%), Bank of India (20%), Central Bank of India

(20%) and ZIMCO (Zambian government; 40%) established
Indo-Zambia Bank (Lusaka). BoB also opened an Offshore
Banking Unit (OBU) in Bahrain.
• 1988: BoB acquired Traders Bank, which had a branch
network in Delhi.

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. The now wholly owned subsidiary became
Bank of Baroda (Hong Kong), a restricted license bank.

BoB also acquired Punjab Cooperative Bank in a rescue.

• BoB also incorporate wholly owned subsidiary BOB Capital

Markets Ltd.for Broking Business.
• 1999: BoB merged in Bareilly Corporation Bank in another
rescue. At the time, Bareilly had 64 branches, including four in
Delhi.

In Guyana, BoB incorporated its branch as a subsidiary, Bank

of Baroda Guyana.
BoB added a branch in Mauritius, 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.
• 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)
and in Kenton, Harrow United Kingdom.
• 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)

2010s

• 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. The new
bank, India BIA Bank (Malaysia), will reside in Kuala Lumpur,
which has a large population of Indians. Andhra Bank will hold
a 25% stake in the joint-venture, BoB will own 40% and IOB the
remaining 35%.
 Education Loans in India
Till some years back higher education and quality education was not affordable to some
illustrious students because of the financial constraints. There was no any alternative but
to jump in the job market prematurely.

And this led to untimely end of budding talents and their forceful transformation into to
the mediocrity.

Scholarships

were there, but those were so less in numbers that only luckier few could avail them. But
now the scene has changed drastically.

The boom in the banking sector has led to release of large amount of funds for education
loans. Now, education loans are easily available from various banks in India and this
change is encouraging more and more students to take up higher education despite their
financial shortcomings.

Many nationalized banks have come up with various educational loan schemes that
students can benefit from.

Even private banks are not lagging far behind. The wave of change could be well
gauged from the amusing situation that immediately after the results announcements of
CAT or PMT/ IIT JEE, the representatives of the banks queue up for giving education
loans to the successful candidate even with very flexible conditions. This scenario is
certainly helping the illustrious students to pursue higher education and realize their
dreams. Here, we have tried to list the name of banks and the details about various
educational loans provided by them.

Benefits of Taking Education Loans

The question which sometimes puzzles the mind of both aspiring students and parents is
why one should opt for an education loan.

1. Financial support for professional courses such as MBA, BTech and MBBS

2. Avaliable for higher education in India and abroad

3. Easy repayment only after job placement

4. Affordable Interest Rates

5. Lesser burden on parents

6. Loan cover upto as much as 20 lac avaliable by various banks

7. Expenses such as tuition fees, travel expenses, hostel charges are included in education
loan
 Baroda Education Loan

Education is the most important investment one makes in life. Higher

studies and specialization in certain fields call for additional financial
support from time to time.

Whether you are planning school education (nursery to standard XII)

of your child, pursuing a graduate or post-graduate degree, the Bank
of Baroda Education Loans, can help finance your ambitions and
goals.

Following are the loan options available:

• Baroda Vidya

• Baroda Gyan

• Baroda Scholar

• Central Scheme of Interest Subsidy for Education Loans

Baroda Vidya
Bank of Baroda presents a one of its kind finance option for parents
of students pursuing school education. These loans are available for
studies from Nursery to Senior Secondary School.

• No processing & documentation charges.

• No Margin.

• No security required.

Terms & Conditions

Eligibility:

• Should be an Indian national residing in India.

• Student should have secured admission to a recognized school

/ High school / Jr. College (including CBSE / ICSE / State
Board) for any of the following courses

1. Stage I : Nursery to V th STD.

2. Stage II : VI th to VIII STD.
3. Stage III : IX th to XII th STD.

Coverage of expenses for:

• Fee payable to college / school.

• Examination / Library / Laboratory Fee.

• Fee and other charges payable to hostel.

• Purchase of books / equipments / instruments / uniforms.

• Personal Computers / Laptops wherever required.

• Caution deposit / building fund / refundable deposit supported

by instituion bills / receipts.

Maximum Loan Amount: Rs.4.00 Lacs

Repayment Period :

• Loan for each yearly sub limit is repayable in 12 equal monthly

instalments. First instalment to be due 12 months after first
disbursement of each year's loan component.
The parents must be residing in the place for a minimum period of
-3- years, except in the case of transferable job.

Security:

• In case the loan is given for purchase of computer the same is

to be hypothecated to the bank.

Rate of Interest:

• 1% concession in rate of interest to loans for girl students.

• Interest to be serviced as and when applied during moratorium

period.

• Penal Interest @ 2% on overdue amount if the loan amount

exceeds Rs. 2/- lacs.

Baroda Gyan
A loan product specially designed for students pursuing Graduation,
Post - Graduation, Professional & Other courses in India. Bank of
Baroda extends a helping hand to energize your studies and promote
education of the youth.

• No processing charges.

• No Margin on loans upto 4 lacs.

• Free Debit Card.

Terms & Conditions

Courses Eligible:

• All Graduation courses.

 • All Post Graduation courses & Doctorate courses.

• Professional Courses viz. Engineering, Medical, Agriculture,

Veterinary, Law, Dental, Management, Computer, Ayurved,
Homeopathy, Physiotherapy, Hotel Management, Hospital
Management, Interior Designing, Architecture, Event
Management, Mass Communication, Fashion Technology, etc.

• Computer certificate courses of reputed institutes accredited to

Dept. of Electronics or institutes affiliated to Universities.

• Courses like C.A, ICWA, CFA, CS, etc.

• Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.

• Regular Degree/ Diploma courses like Aeronautical, pilot

training,
shipping etc., approved by Director General of Civil
Aviation/shipping.

• Other courses leading to diploma / degree etc. conducted by

colleges/universities approved by UGC/Govt./ AICTE/ AIBMS/
ICMR etc.

• Courses offered in India by reputed foreign Universities.

• Evening courses of institutes approved by

State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.

• Courses offered by National Institutes and other reputed private

institutions. The College/Institute must have been approved by
the State/Central Govt./UGC/AICTE,etc.

Student Eligibility:

• Should be Resident Indian.

• Secured admission to either of above courses

Coverage of expenses:

• Fee payable to college / Institution / University.

 • Examination / Library / Laboratory Fee.

• Fee and other charges payable to hostel.

• Purchase of books / equipments / instruments.

• Personal Computers / Laptops wherever required.

• Caution deposit / building fund / refundable deposit supported

by institution bills / receipts.

• Any other expenses required to complete the course - like study

tours, project works, thesis, etc.

Maximum Loan Amount: Rs.10.00 Lacs.

Margin:

 Upto Rs. 4.00 lacs :- NIL

 Above Rs. 4.00 lacs :- 5%

 Margin is to be contributed on pro rata basis on year to year

basis as and when disbursements are availed.

Repayment Holiday / Moratorium Period:

• Course period + 1 year or 6 months after getting job, whichever

is earlier.

Repayment Period:

• The loan is repayable in 5-7 years after the above period.

Security:

• Upto Rs.4 lacs : No security

 • Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the
form of a suitable third party guarantee alognwith assignment of
future income.

• Above Rs.7.5 lacs: Tangible collateral security equal to 100% of

the loan amount along with assignment of future income

Rate of Interest:

• Simple interest to be charged at monthly rests during the

repayment holiday / moratorium period.

• 1% interest concession is provided if interest debited during

repayment holiday is serviced.

• 1% Concession in rate of interest to loans for girl student.

• Penal interest @ 2% p.a. on overdue amount, if the loan

amount exceeds Rs.4.00 lacs.

• For loans above 4 lacs, interest rate will be 2 % above base

rate for ISB, Hyderabad Students which is 2 % less than that for
students of other institutes

Baroda Scholar
Bank of Baroda presents financial assistance to students going
abroad for Professional / Technical studies. The loan offering is
designed to empower you with the financial capability to realise your
dreams... Achieve your goals... Reach out to the maximum limits...

Terms & Conditions

Eligiblity of Courses:

Graduate/Post Graduate / Doctorate / Job Oriented Professional /

Technical Courses offered by reputed Universities overseas.
Regular Degree/ Diploma courses like Aeronautical, pilot training,
shipping etc. The Institute should be recognized by the competent
local aviation / shipping authority and Director General of Civil
Aviation/shipping in India.

Student Eligibility:

• Should be an Indian National.

• Secured admission to Professional/Technical Courses at

foriegn Universities/Institutions.

Coverage of expenses (for overseas studies):

• Admission/Tuition fees to College/University.

• Hostel/Mess charges.

• Examination/Library/Laboratory fee.

• Purchase of books/equipments/instruments.

• Caution deposit/building fund/refundable deposit supported by

institution bills/reciepts.

• One way travel expenses/Passage money.

• Purchase of computers if essential for completion of the course.

• Any other expense required to complete the course e.g. study

tour, project work, thesis etc.

Maximum amount of loan: Rs. 20.00 Lacs.

Margin: 15%

Repayment Period:

Repayment Holiday/Moratorium Period:

 • Course period + 1 year or 6 months after getting job, whichever
is earlier.

The loan is repayable in 5-7 years after the above period.

Security:

• Upto Rs.4.00/- lacs : No security

• Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the
form of a suitable third party guarantee alognwith assignment of
future income.

• Above Rs.7.5 lacs: Tangible collateral security equal to 100% of

the loan amount along with assignment of future income

Rate of Interest:

• Simple interest during repayment holiday/moratorium period.

• 1% interest concession, if interest debited during the repayment

holiday is serviced.

• 1% Concession in rate of interest to loans for girl student.

• Penal interest @ 2% p.a. on overdue amount if loan exceeds

Rs.4/- lacs.

Central Scheme of Interest Subsidy for

Education Loans
Government of India, Ministry of Human Resources
Development, and Department of Higher Education has
formulated an Interest Subsidy for Education Loans for the
students of economically weaker section (EWS) for pursuing
technical / professional courses in India.

Salient features of scheme are as under:

• Scheme will be named as “Education Loan Interest Subsidy

Scheme” specially designed to provide Interest Subsidy for the
period of moratorium on educational loans taken by students
from Economically Weaker Sections from our Bank under the
educational loan scheme of the Indian Banks’ Association to
pursue Technical / Professional Education studies in India.
• Maximum loan limit under this scheme would be Rs.10 lac
• Government of India will provide full interest subsidy during the
moratorium period on loans taken by students from the Bank.
For loans sanctioned prior to 01.04.2009, only interst on the
amount disbursed after 01.04.2009 are eligible.
• After the moratorium period interest will be borne by student.
• Student should belong to Economically Weaker Section
(not on social background) having parental family income
from all sources not more than Rs. 4.5 lac per annum.
• State Government will designate appropriate authority or
authorities who are competent to issue Income certificate,
based on economic index and not social background, for the
purpose of this scheme.
• Subsidy will be available only to students enrolled in recognized
Technical / Professional courses (after XII) in India in
Educational Institutions established by Acts of Parliament, other
institutions recognized by the concerned Statutory Bodies,
Indian Institutes of Management (IIMs) and other Institutions set
up by the Central / State Government.
• Interest rates charged on the loan shall be as per interest
rates applicable under our Education Loan Scheme.
• Interest subsidy shall be available to the eligible students only
once, either for first undergraduate degree course or the post
graduate degrees / diplomas in India. Interest subsidy shall,
however, be admissible for integrated courses (graduates +
post graduates).
• Subsidy shall not be available if a student discontinues the
course in midstream, expelled from Institutions on disciplinary
or academic grounds.
• There would be tag / marker on the degree and marksheet
of the student indicating his repayment liabilities. Electronic
tag will enable employers to identify loanees. Nodal Bank for
the scheme shall be Canara Bank and monitoring shall be
finalized in consultation with the Canara Bank.
• List of Technical / Professional courses for which the scheme
would be applicable, shall be publicized from time to time by
UGC and AICTE and the same would be immediately displayed
at their websites, which may be accessed for verification
purposes.
• Agreement is also to be signed by the student and Bank.