1

MOTILAL NEH

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 CERTIFICATE:

Date: 9 July 2010

This is to certify that Miss Binita Kumari (registration no .2009mb11) ,

MBA Second Semester , has completed his Summer Training Project
Titled “MARKETING STRATEGY OF THIRD PARTY IN GENERAL
AND NON LIFE IN PARTICULAR PRODUCTS “from Bank of
Baroda , Allahabad , in partial fulfillment of MBA program under the
been submitted anywhere in anywhere in any manner .
Guidance of the undersigned . The work is originally and has not
been submitted anywhere in any manner.

Mr. R.K .VIJAY Sanjeev Anand &

(D.R.M) Bank of Baroda Ikramul Haq
Project guide (Marketing deptt)

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 DECLARATION:

I hereby declare that this report on “MARKETING STRATEGY OF THRD PARTY IN

GENERAL AND NON LIFE PARTICULAR” has been written and prepared by me during
the academic year 2010-11. This project was done under the able guidance and supervision of
Mr. R K VIJAY Dy Regional Manager, Bank of Baroda Allahabad. This report is submitted as
partial fulfillment of the requirement of MBA Program of SMS MNNIT ALLAHABAD.
I also declare that this project is the result of my own efforts and has not been
submitted to any other institution for the award of any Degree or Diploma.

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S.NO CONTENT PAGE NO

1 ACKNOWLEDGEMENT

2 EXECUTIVE SUMMARY

3 INTRDUCTION

4
BANKING IN INDIA
5
COMPANY PROFILE
6
ORGANISATION HIERARCHY IN BANK OF BARODA
7
PRODUCT & SERVICES OFFERED BY BANK OF BARODA
8 BRIEF STUDY OF INSURANCE
9 MARKETING STRATEGY OF THIRD PARTY IN GENERAL
AND NON LIFE IN PARTICULARS
10
COMPANY PROFILE OF INDIAFIRST LIFE INSURANCE

11 COMPANY PROFILE OF NICL WHICH HAVE TIE UP

WITH BARODA HEALTH

12 ANALYSIS OF QUESTIONNAIRE

13 FINDINGS

14 SUGGESSTION
15 LIMITATION

16 REFERENCES

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 ACKNOWLEDGEMENT:

With immense pleasure, I would like to present this project report to BANK OF
BARODA,REGIONAL OFFICE ALLAHABAD. It has been an enriching experience for
me to undergo my summer training at BANK OF BARODA, I take this opportunity to thank all
those who have helped and inspired me during the course of my project which the successful
completion of project would not have been possible.
I sincerely thank Mr.R.K.VIJAY (D.R.M) of BANK OF BARODA for giving me this
opportunity to take up this project
I wish to record my deep sense of gratitude and profound thanks to my company guide, Mr.
SANJEEV ANAND and Mr. IKRAMUL HAQ for his valuable guidance throughout this
project, and for providing me the necessary facts and data relevant to this study.
I also express my gratitude to Prof. GEETIKA (HOD) my faculty guide at SMS MNNIT
ALLAHABAD who has been a constant source of encouragement to me and has been
instrumental in bringing about the successful completion of this project.
I am thankful to all the employees of BANK OF BARODA, ALLAHABAD for their help and
suggestions in conducting this study.
And above all, I thank the Almighty God for helping me to complete this work successfully. I
would like to thank the entire respondent who took out from their busy schedules to interact with
me, fill the questionnaires and answer my queries.
I am thankful to my parents for their unfailing support and warm wishes. Lastly I take this
opportunity to my friends, who chipped-in with some valuable suggestions for the betterment of
this project.

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 EXECUTIVE SUMMARY:

The MBA course offered by MOTILAL NEHRU NATIONAL INSTITUTE OF TECHNOLOGY ,

ALLAHABAD has its own unique syllabus which require its students to undertake any internship
with any of the leading business houses for a period ranging from 6-8 weeks at the end of the second
semester . the purpose of this internship is to enable the students to appreciate and understand the
nuances of practical world vis –a-vis the theoretical input administered during regular academic
session. This help in creating managers who are well equipped with the experience of linking the
theoretical inputs with those of practical environment.In partial fulfillment of MBA degree of MNNIT
ALLAHABAD. I was given a project on “”.I was given a project on Marketing Strategy of Third
Party in General & Non Life in Particular”.
have experienced the heat of work for more than six weeks and it was really a great exposure in the
corporate world. I have learned a lot regarding the working of banks related to mentoring and noticed
various problems which they face and are still facing during mentoring period . it was really great
working with this prestigious organization of Bank of Baroda.

OBJECTIVE OF THE STUDY:

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 • To study the customer of BANK OF BARODA.

• To know about the how many people have knowledge about insurance

• To know about marketing strategy of INDIAFIRST life insurance

• To find out the problems which they had or still facing from insurance service provide by
BANK OF BARODA.

• Are they satisfy by the plan of Indiafirst insurance.

• To suggest measures that can help Indiafirst insurance to capture the market as soon as
possible

• To find out are they have awareness about insurance policy provide by bank of baroda.

RESEARCH METHODOLOGY:

SOURCES OF DATA:
The study is based on both primary & secondary data.

 Primary data is the data that is collected personally, and is first hand as well as unique in nature. For
this study , the primary data has been collected with the help of the following two methods:
(1) Personal interview
(2) Questionnaire

 Secondary data is second hand data or information that has already been collected by someone
else for a different purpose. For this study , the secondary data has been collected through:
 Books
 Magazines
 Newspapers
 Circulars
 In-house journals
 Internet

The exploratory research method has been adopted for study. Exploratory research is a type of research
conducted because a problem has not been clearly defined. Exploratory research helps determine the best
research design, data collection mehod and selection of subjects. Exploratory research often relies on
secondary research such as reviewing available literature and/or data, or qualitative approaches such as
informal discussion with employees mentors, management or competitors.

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RESEARCH INSTRUMENTS;
The data collection instruments used for this study are personal (unstructured) interviews and questionnaires.
There are two different sets of questionnaires, designed to gather as much relevant data as possible from the
respondents. These questionnaire are:

 Questionnaire.

SAMPLE DESIGN:
Sample refers to small part or subset of the total population, being similar and representative of whole.

The sample design of a sample survey refers to the techniques for selecting a probability sample and methods
to obtain estimates of the survey variables from the selected sample.

It is an integral part of the research design.

Target Population:
It includes the new entrants/employees of the bank of baroda and some other private and public sector banks
who were mentored.

Sampling Frame:
The sampling frame for the research includes new employees and mentors of some of private sectoe and
public sector banks.

Type Of Sample
The type sampling choosen for the project are convenience sampling and random sampling.

A radom sampling refers to taking a number of independent observations from the same probability
distribution , without involving any real population .

Random sampling all members of the population have an equa chance of being selected as part of the
sample.

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 Sample Size:
Total sample size for the research is 120.

Location No of customer covered

S.No

M.G.Marg 20

Katra 20

RAS Ashok Nagar 20

3

20
4 Bahadurganj

20
Kydganj
5

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 INTRODUCTION:

Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India which started in 1786, and the Bank of Hindustan, both of which are
now defunct. The oldest bank in existence in India 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. For many years the Presidency banks acted as quasi-
central banks, as did their successors. The three banks merged in 1921 to form the Imperial
Bank of India, which, upon India's independence, became the State Bank of India. Indian
merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865
and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank. . That
honor 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 b Foreign banks too
started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de
Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in
Madras and Pondichery, then a French colony, 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 center.
Being transferred to the Alliance Bank of Simla. The Bank of Bengal, which later merged with
the Bank of Bombay and the Bank of Madras to form the Imperial Bank of India in 1921.

The period between 1906 and 1911 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 partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,
paralyzing banking activities for months. 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 economic life 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

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state in different segments of the economy including banking and finance. The major steps to
regulate banking included:

• In 1949, the In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became Banking Regulation Act was enacted which empowered the
Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank
could be opened without a license from the RBI, and no two banks could have common
directors.

However, despite these provisions, control and regulations, banks in India except the State Bank
of India, continued to be owned and operated by private persons. This changed with the
nationalization of major banks in India on 19 July 1969.

NATIONALISATION :

The RBI was nationalized on January 1, 1949 in terms of the Reserve Bank of India (Transfer to
Public Ownership) Act, 1948 (RBI,

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 possibility to nationalise the banking industry. Indira Gandhi, the-
then Prime Minister of India expressed the intention of the GOI in the annual conference of the
All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation. The
paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and
the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from
the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the
step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the
Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the GOI controlled around 91% of the banking business of
India. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to
the average growth rate of the Indian economy.

Liberalization:

In the early 1990s, the then Narsimha Rao government embarked on 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

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up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI
Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of
India, revitalized the banking sector in India, which has seen rapid growth with strong
contribution from all the three sectors of banks, namely, government banks, private banks and
foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10%,at present it has gone up to 74% with some
restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this
led to the retail boom in India. People not just demanded more from their banks but also received
more.

Currently , banking in India is generally fairly mature in terms of supply, product range -even
though reach in rural India still remains a challenge for the private sector and foreign banks. In
terms of quality of assets and capital adequacy.

Markets First
31st May, 2010
Headlines

• Equity benchmark indices recover lost ground with a 2.5% gain for the week on the back
of short covering.

• 10 year GOI Benchmark at 7.55% (17 bps hardening WoW) due to pressure of liquidity.

Robust GDP growth of 7.4% for the FY 2010 - helped by higher than expected growth from
manufacturing and agriculture.

Bond market update

10 year benchmark G-sec at 7.55% on 28th May, 2010 (hardening of 17bps WoW)
The yields on the G-sec started hardening in view of the impending liquidity shortage due to the
3G auction, tax outflows and the weekly auction supply. The yields on the US Treasury also
hardened.
Corporate bonds yields range bound in view of ample liquidity

The 10 year AAA bond traded at a yield of around 8.67% compared to 8.60% observed in the
previous week. The 1 year bond was stable at 6.65%. The AAA 5 year corporate bonds hardened
to 8.18%. The hardening is due to the increase in yields in government securities and the
impending liquidity shortage.

GDP growth and inflation

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The robust GDP growth of 7.4% for the FY 2010 was triggered by the higher than expected
growth from manufacturing and agriculture, boosted by the economic stimulus. The primary
articles inflation rate for the week ended 15th May stood at 15.9% vis-à-vis 16.19% a week
earlier - the index declined by 0.1%. The fuel and power index rose 0.05% taking the YoY
inflation rate to 12.08% from 12.33% a week earlier.

Foreign exchange reserves

India's foreign exchange reserves for the week ended 21st May stood at $273.36 bln lower by
$2.87bln.

Global news update for bond markets

 According to the 2nd estimate released by the Bureau of Economic Analysis, real GDP of the
US increased at an annual rate of 3.0% in the first quarter of 2010 as against 3.2% in the advance
estimate. In the fourth quarter of 2009, real GDP had increased 5.6%.

 As per the Office for National Statistics, GDP in the UK rose by 0.3% in the first quarter
compared to an initial measurement of 0.2% as rebounding investment and the biggest jump
manufacturing for four years strengthened the recovery.

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“PASSION TO SERVE.
PASSION TO PERFORM”
COMPANY PROFILE

Our Mission:

BRIEF HISTORY :

Bank of Baroda is having a long, eventful and glorious history of more than 101 years. HH Sir.
Maharaj Sayajirao-III founded the Bank.The Bank made a humble beginning in 1908 in a small
building in Baroda. On 20th July 1908 Bank of Baroda Limited was registered under the Baroda
Companies Act of 1897, with a paid up capital of Rs. 10 lacs.

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In the year 1935 Bank became a scheduled Bank. RBI included the Bank in the second schedule
of RBI and brought under direct control of RBI. At the time of independence in 1947, Bank of
Baroda was a regional bank with 48 branches. However, it found a place in India’s ‘Fortune
Five’ list of Banks. During 1953 - 1958 Bank opened 30 new offices and had become an all-
India Bank. Bank of Baroda (BSE: 532134) (BoB) (Hindi: बैक ऑफ बडौदा) is the 3rd largest bank
in India, after State Bank of India and 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 3000
branches and offices, and about 1100+ ATMs. 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 specialised subsidiaries and affiliates in the areas of investment banking, credit cards
and asset management.

Maharajah of Baroda Sir Sayajirao Gaekwad III founded the bank on July 20, 1908 in the
princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of
India, was nationalised on 19 July 1969, by the Government of India.

As many as nine banks have merged with Bank of Baroda during its journey so far:
Hind Bank Ltd (1958)
New Citizen Bank of India Ltd (1961)
Surat Banking Corporation (1963)
Tamil Nadu Central Bank (1964)
Umbergaon People Bank (1964)
Traders Bank Limited (1988)
Bareilly Corporation Bank Ltd (1998)
Benares State Bank Ltd (2002)
South Gujarat Local Area Bank Ltd (2004).

The Heritage

It all started with a visionary Maharaja's uncanny foresight into the future of trade and
enterprising in his country. On 20th July 1908, under the Companies Act of 1897, and with a
paid up capital of Rs 10 Lacs started the legend that has now translated into a strong, trustworthy
financial body, THE BANK OF BARODA

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It has been a wisely orchestrated growth, involving corporate wisdom, social pride and the vision
of helping others grow, and growing itself in turn.

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 has been 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.

The Ethics:

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 century old existence, to become its biggest
asset. It ensured that the Bank survived the Great War years. It ensured survival during the Great
Depression. 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

Our Logo:

Our new logo is a unique representation of a universal symbol. It comprises dual ‘B’
letterforms that hold the rays of the rising sun. We call this the Baroda Sun.

The sun is an excellent representation of what our bank stands for. It is the single most powerful
source of light and energy – its far reaching rays dispel darkness to illuminate everything they
touch. At Bank of Baroda, we seek to be the source that will help all our stakeholders realise
their goals. To our customers, we seek to be a one-stop, reliable partner who will help them

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 address different financial needs. To our employees, we offer rewarding careers and to our
investors and business partners, maximum return on their investment.

The single-colour, compelling vermillion palette has been carefully chosen, for its distinctivenes
as it stands for hope and energy. The Baroda Sun is a fitting face for our brand because it is a
universal symbol of dynamism and optimism – it is meaningful for our many audiences and
easily decoded by all. It is a signal that we recognize and are prepared for new business
paradigms in a globalised world. At the same time, we will always stay in touch with our
heritage and enduring relationships on which our bank is founded. By adopting a symbol as
simple and powerful as the Baroda Sun, we hope to communicate both.

INITIAL EMBLEM:

The emblem show a coin, symboilizing wealth , embossed with an an unpraised

palm, a safety cover for the depositor’s money with a cogwheel that promotes industrial growth
in tandem with the two corn ears that stan for the progress of the staple agriculture growth
in the country .

Marketing Initiatives

The mid-eighties marked the beginning of the shift to a buyers` market. The Bank orchestrated
its business strategies around the centrality of the customer. It diversified into areas of merchant
banking, housing finance, credit cards and mutual funds. A string of segment specific branches
entrenched operations in the profitable markets. Overseas operations were revamped and
structural changes intensified in the territories to cater to second generation NRIs. Slowly but
surely, the move to become a one stop financial supermarket had been set in motion. Service
delivery standards were stipulated.

Technology was adopted to add punch. Employees across the board were inculcated with the
marketing concept. Aggressive marketing became the new business philosophy.

People Initiatives

Bank of Baroda has always had an immense faith in the infinite potential of its people. This has
been historically demonstrated in its recruitment practices, developmental initiatives, placement
processes and promotion policies. Strategic HR interventions like, according cross border and
cross cultural work exposure to its managers, hiring diverse functional specialists to support line
functionaries and complementing the technical competencies of its people by imparting
conceptual, managerial and leadership skills, gave the Bank competitive advantage. The
elaborate man management policies also made the Bank a breeding ground for business leaders.
The Bank provided around a dozen CEOs to the industry- men who went on to build other great

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institutions. People initiatives were blended with IR initiatives to create an effectively
harmonious workplace, where everyone prospered.

Financial Initiatives

New norms for capital adequacy required new capital management strategies. In 1995 the Bank
raised Rs 300 crores through a Bond issue. In 1996 the Bank tapped the capital market with an
IPO of Rs 850 crores, Despite adverse market conditions prevailing then, the issue was over
subscribed, reflecting the positive public perception of the Bank's fundamental financial strength.

The Future

Revolutionary and discontinuous changes in the operating environment are a stark reminder that
business success is 'impermanent'. The emergence of IT as a major driver for change, has
accentuated the need to initiate a major transformation program. The conversion to an IT savvy,
market driven bank will be a prerequisite to survival and growth. A major and strategic step in
hi-tech, was the establishment of the Integrated Treasury branch, as a forerunner to full-fledged
global treasury operations. Towards creating a future Bank of Baroda, the Bank has adopted a
revolutionary new business strategy that will be enabled by a revolutionary new IT strategy.
Actioning this strategy will position Bank of Baroda as India's uncontested premier bank.

At Bank of Baroda, change is a journey. It has a beginning. There will be no end. It will be a
long and difficult march. And the Bank will emerge stronger, more resilient and positioned to
become India's first bank of truly global standards. The relocation to the imposing Baroda
Corporate Centre, is a true reflection of the Bank's resolve to move ahead of the times. It will not
be out of place now, 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'.

International Presence:

In the year 1953, taking a pioneering step, the Bank opened its first overseas branch at Mombasa
on 14.12.1953 followed by two other branches at Kampala and Nairobi.

Subsequently, operations started in Dar-Es-Salaam in 1956 and in London in 1957. At present,

the Bank has 78 overseas network branches / offices in the following 25 countries:

1 Australia 10 Guyana 19 Tanzania

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2 Bahamas 11 Hong Kong 20 Trinidad & Tobago
3 Bahrain 12 Kenya 21 Uganda
4 Belgium 13 Mauritius 22 UAE
5 Botswana 14 Malaysia 23 UK
6 Bangkok 15 South Africa 24 USA
7 China 16 Seychelles 25 Zambia
8 Fiji Island 17 Sultanate of Oman 26 Mozambique
9 Ghana 18 Singapore 27 Quatar

OVERSEAS SUBSIDIARIES
Bank of Baroda (Botswana) Ltd.
Bank of Baroda (Kenya) Ltd.
Bank of Baroda (Uganda) Ltd.
Bank of Baroda (Guyana) Inc.
Bank of Baroda (Tanzania) Ltd.
Bank of Baroda (Ghana) Ltd.
Bank of Baroda (Trinidad & Tobago) Ltd.
Bank of Baroda (New Zealand Ltd.

Joint Venture
India-Zambia Bank Ltd. (Lusaka)
Representative Offices
Australia
Kuala Lumpur, Malaysia
Bangkok, Thailand
Major Financial centers of the world

Brussels, Bahamas, Dubai, Hongkong, London, Singapore

and New York.

Important milestones post-nationalisation:

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1969: Bank was nationalised in the year 1969 along with
fourteen other banks.

1972: Established Multi Service Agency for urban micro-

credit.

1976: Opened the first of its Regional Rural Banks

complementing its own operations in the rural
heartland. Today the Bank is the sponsor for 6
Regional Rural Banks spread over 5 states and 41
lead districts.

1977: Launched Gram Vikas Kendras (GVK), an

innovative model for integrated rural
development. The Bank is having 170 GVK
branches today.

1995: Bank raised Rs. 300 crore through a Bond issue to

comply with new norms of capital adequacy.

1996: Bank launched its initial public offer of 10 crore

equity shares for an aggregate amount of Rs. 850
crore.

2004: Bank entered into MOU with National Insurance

Company Limited for their non life insurance
products under corporate agency arrangement.

2004: Bank was ranked as the best customer centric bank

among all the public sector banks operating in
India by the magazine Outlook Money (Sep-2004
issue).

2005: Bank’s new Logo, BARODA SUN was launched

2005: CBS rollout in Powai, Mumbai

2006: Bank came out with a follow on issue of 710 lacs

shares each at a bidding price of Rs. 230/- per
share, which had a tremendous response from all
the segments.

2008: Completed “Centenary Year”.

2009: CBS roll out in 100% branches & mega project

“Navnirmaan” launched

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Business Philosophy:

The 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 decision would be
effected. This cardinal philosophy was over the 100 years
of its existence, to become its biggest asset. The banking
crisis of 1914 to 1918 put a lock on many banks, but not
on Bank of Baroda. It not only survived but also emerged
as a vital force in the world of banking – a financial
powerhouse.The Bank is emerging stronger, more resilient
and positioned to become India’s first bank of truly global
standards.

Project “NAVNIRMAAN – Baroda Next”

A comprehensive transformation programme called

“NAVNIRMAAN” has launched by our Bank on 22 June
2009. The Bank has partnered with McKinsey &
Company for this programme, which is centered around
our customers and our employees, and has two core
elements – Business Process Re-engineering (BPR) and
Organization Restructuring (OR).
Primarily, the main objective of this programme revolves
around the following:

 Ensure best in class customer service

 Streamline processes to make life simpler for
employees and customers
 Equip you with the best tools and techniques to
discharge your roles effectively
 Align the Bank’s organization structure and systems to
help build ‘Baroda Next’ and drive the new strategy.

MAJOR INITIATIVES TAKEN BY BANK IN

RECENT PAST:

Paramarsh – Centre for personal counseling Sampark–

22
 SOS helpline for employee
Khoj – talent identification and development programme
Baroda Sujhav -Staff suggestion scheme
BOB signed MOU with (i) Exim Bank
(ii)IDFC(iii)SIDBI for co financing of projects
BGPK (Baroda Grameen Paramarsh Kendra)
MOU with Grow Talent Co. Ltd For HR development
(300 leaders)
SUNDARAM PARIBAS Asset Management
Company for Mutual funds
FRANKLIN TEMPLETON Asset Management Co.
for Mutual funds
Baroda GOLD COIN selling started.
BSE enters into an agreement with Bank of Baroda for
clearing and settlement
CBS roll-out in 100% branches
Launching of JV “IndiaFirst Life Insurance Co. Ltd.”
Sankalp scheme for recovery
BSVS (Baroda Swarojgar Vikas Sansthan)
Baroda Swarojgar Vikas Sansthan (BSVS) is a body
registered under Societies Act and Trust Act at our Staff
College with the Principal as its president and now it is
being monitored by Priority Sector Deptt, BCC, Mumbai.
The objectives of BSVS are:
1. To provide education, information and skills to youth
for setting up own enterprise.
2. To encourage them to start suitable viable economic
activities in their local areas

Gen-Next Branch

11. To respond to the needs of the changing demographic profile of the country, the bank has
been endeavoring to customize delivery channels especially for youth segment.
22. As a part of these efforts, the bank has set up an innovative “Gen- Next branch” dedicated
to youth and young IT professionals at Pune
3
4Base Rate - 8% (currently)

23
 PRODUDT & SERVICES OFFERED BY BANK OF BARODA :
Retail Loans:

A wide range of solutions for your financial needs.

Bank of Baroda offers a wide range of retail loans to meet your diverse needs. Whether the need
is for a new house, child's education, purchase of a new car or home appliances, our unique and
need specific loans will enable you to convert your dreams to realities.

Key products :
BARODA HOME LOAN:

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Home Improvement Loan

Bank of Baroda brings to you a unique loan product. A loan for Repairs /
Renovations / Improvement / Extension of Home and for Furniture, Fittings & Fixtures.

Key Benefits

• Loan available for repairs / renovation / improvement / extension of the existing house.

• Loan available for purchase of furniture / fixtures / furnishing / other gadgets such as
fans, geysers, air conditioners etc. required, to:

Baroda Mortgage Loan

Bank of Baroda brings to you an innovative combination of a loan and over draft facility with
flexible repayment options against the security of your immovable property.

Key Benefits

• Ideal use of idle property - Generate additional income from an otherwise idle property.

• Withdraw money as per your need and save on interest cost.

• Deposit surplus money / regular income / salary and save interest.

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

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 • Baroda Scholar

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.

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...

Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses offered by

reputed Universities .

BARODA CAR LOAN :

In today's fast paced world, a vehicle is but a necessity. Yet other expenses and plans in life take
priority and the dream of owning a car takes a back seat. Whether as a comfortable and
dependable means of transport or as a status symbol in society, we believe you deserve
ownership of a vehicle.

The Car Loans from Bank of Baroda are designed to finance the car that suits your need and
matches to your status & taste.

Baroda Loan to Doctors

Bank of Baroda brings to you Baroda Loan to Doctors, a one of its kind, designed specially to
cater to the financial needs of the doctors.

The advance is available for projects related to setting up / expansion of nursing home / hospital /
clinic and pathological .

BARODA PERSONAL LOAN:

26
A wedding in the family. Maybe it's high time you surprised your spouse with a priceless gift. Or
you simply need to pamper your family with an extended vacation. These are the times when you
may need a helping hand. That's when you can bank on us. Bank of Baroda's Personal Loan
offers financial help to meet your personal requirements.

Key Benefits:

• Helps you take care of all kinds of expenses at a short notice.

• The Loan may be availed to meet expenses related to marriage, travel, honeymoon,
holiday and medical expenditure or for any other personal use.

• The loan is also available to Pensioners/Defence Pensioners

• Loan is also available for Earnest Money Deposits for buyers of home/flat/plot.

Baroda Ashray (Reverse Mortgage Loan)

Eligibility:

• Should be Senior Citizen of India, above 60 years of age.

• Married couples will be eligible as joint borrowers provided one of them is above 60
years of age and age of spouse is not below 55 years at the time of application.

• Should be the owner of a residential property (house or flat) located in India in his/her
own name.

The maximum loan amount inclusive of interest for entire tenure of the loan shall be restricted to
Rs. 1 crore subject to value of the property. The Bank shall have the option to revise periodic
annuity amount, if lump-sum payment is taken or at the interval of every 5 years based on
valuation of the property.

Repayment of Loan:

27
The loan shall become due and payable when the last surviving borrower dies or would like to
sell the home / permanently moves out of the home for aged care to an institution or relatives.
The loan will, as such, become due for recovery and payable.

• Settlement of loan, along with accumulated interest, to be met by the proceeds received
out of sale of residential property.

• The borrower(s) or his/her/their estate shall be provided with the first right to settle the
loan along with accumulated interest, without sale of property. A reasonable period of 2
months may be provided when repayment is triggered, for house to be sold.

Baroda Traders Loan:

The Baroda Traders Loan facility enables individuals, Proprietorships, bodies such as
Partnership firms and Co-op societies to avail of working capital or undertake development of
shop by way of loan/overdraft. Dealers in gold/ silver jewelry are also covered under the scheme.

Key Benefits

• Option to avail the credit facility as loan or overdraft.

• Advance available up to Rs. 200 Lacs.

• Loan can be repaid in a maximum period of 60 months.

• The business units should have been established in the line of business for a minimum period
of 2 years

• 40% on realizable market value of immovable property.

• 10% on Bank's own Fixed Deposits.

• 15% on face value of NSCs, Govt. Bonds, surrender value of LIC policies.

BarodaTwoWheelerLoan:

28
For those individuals who prefer to travel more conservatively or to get to their destinations
faster, a two-wheeler is as much a boon as it is to a car owner. With newer models coming out
each year, the options available to the customer are both attractive as well as convenient.

Bank of Baroda's Two-Wheeler Loan make it possible to purchase a two-wheeler and pay
back in easy monthly instalments, thereby reducing the burden of a one-time payment.

All resident Indians, salaried, professionals, self-employed, businessmen and farmers can apply
for this loan.

Terms & Conditions

• Finance for a minimum of Rs. 5000 and a maximum of Rs. 1 Lakh (or five times of the
monthly income, whichever is less) can be availed of through the loan.

• Margin of 10% on loan amount.

• The loan amount can be repaid in maximum 60 months from the date of disbursement of
loan.

Baroda Career Development

Gainfully employed persons intend to pursue higher education, vocational courses, trainings,
pilot trainings, skill up gradation, diploma or degree courses offered in aviation, hospitality and
travel management, executive development etc. in India / abroad.

Eligiblity of Courses :

• Graduate, Post Graduate, Diploma, Professional Courses, Specialization courses offered

by reputed Universities/ Institutions (Indian or Overseas), having assured employment
prospects,

• Skill up gradation courses offered by various institutes (Indian/Overseas), having assured

employment prospects,

• Courses offered by Hospitality Management Institutes for Skill upgrade/Short course/

Training etc.

29
 • Pilot Training Courses, offered by reputed Institutions (Indian or Overseas), approved by
Director General of Civil Aviation (DGCA) /International Civil Aviation Organization
(ICAO).

Student Eligiblity :

• Should be an Indian National.

• Have secured admission to the course through entrance test / merit based selection
process.

Loan Against Future Rent Receivables

Has been developed considering the growth potential in the real estate in various metros and
urban centers, where many commercial properties/shopping malls are being developed and the
owners approach banks for loans against securitization of future rent receivables from such
properties.

Key Benefits

• The scope for the New Product has been kept wide to cover the target groups, viz. owners
of immoveable properties (lessor) belonging to all types of the constitution.

• The minimum and maximum loan limits are fixed at Rs.1 lac and Rs.1000 lacs
respectively.

Baroda Home Loans to NRIs / PIOs

Bank of Baroda presents yet another innovative product in the form of Baroda Home Loans to
NRIs / PIOs, a unique housing loan facility designed specially for Non Resident Indians (NRI)
and Person of Indian Origin (PIO).

Key Benefits

• A loan product tailor-made for NRI / PIO needs

• Opt for Flexi Rate plan to hedge the interest rate risk by breaking the loan into two
separate accounts

• Free property insurance and personal accident insurance

• No pre payment / foreclosure charges for part as well as full prepayment (when repaid
from own sources by the borrower) .

30
Baroda Home Loans to NRIs / PIOs:

Bank of Baroda presents yet another innovative product in the form of Baroda Home Loans to
NRIs / PIOs, a unique housing loan facility designed specially for Non Resident Indians (NRI)
and Person of Indian Origin (PIO).

Key Benefits

• A loan product tailor-made for NRI / PIO needs

• Opt for Flexi Rate plan to hedge the interest rate risk by breaking the loan into two
separate accounts

• Free property insurance and personal accident insurance

• No pre payment / foreclosure charges for part as well as full prepayment (when repaid
from own sources by the borrower)

Deposits:

• Bank of Baroda offers various deposit plans that you can choose from depending on the
term period, nature of deposit and its unique saving and withdrawal features.
• Apart from competitive interest rates and convenient withdrawal options, our deposit
plans offer other features such as overdraft facility, outstation cheque collections, safe
deposit lockers, ATM's etc.
• Choose from Fixed, Current and Savings Deposit plans.
• Fixed deposits are categorised into deposits with a term period of less than 12 months,
more than 12 months and recurring deposits. These deposit plans offer convenient
solutions to both working individuals as well as senior citizens.
• Current and saving deposits are ideal for individuals who wish to take advantage of
multiple benefits within the same plan and even be eligible to opt for overdrafts.

Gen Next Services:

Gen-Next Junior (Saving Account)

Product Nature

• This is a Special kind of Savings Bank Deposit product for children to be made available
in Gen-Next Pune branch.

Gen-Next Lifestyle

31
Type Of Facility

• Term Loan (Combo Pack)

Purpose

• Purchase of Home Furnishings / Consumer Durable goods (includes color T.V., video
camera / refrigerator / washing machine / music system / air-conditioners / cooking
system etc).
• Purchase of vehicle i.e. two-wheeler / four-wheeler.
• Purchase of Laptop / PC.
• Purchase of any new electronic gadgets like Mobile, i-Pod, Handycam etc.

Target Group

Working Gen-Next Power (OD Facility)

Product Nature

• This is a special Savings Deposit product having an in built feature of overdraft facility to
be available at Gen-Next Pune branch.

Target Group

• The product is targeted to working executives and other working professionals.

Our Bank’s Staff members are not eligible to avail the product.

. Gen-Next Suvidha :

Product Nature :

• This is a Recurring Deposit product enabling the customer to make regular savings on
monthly basis and earn higher interest.

Customer Segment :

• Individuals in their single / joint names.

• Minors of age 10 years and above jointly with their parents / natural guardians.
• Minors below 10 years age through their parents.

DEBIT CARD :

32
Bank of Baroda International Debit Card is accepted at over 50000 Visa Electron ATMs in
India and 1000000 ATMs worldwide. The card is also accepted at any 350000 merchant outlets
in India and around 29 millions globally. The card enables you to enjoy the convenience of cash-
less purchasing power without the fear of overdrawing your account

Key Benefits

• Take advantage of the most widely accepted card and be able to withdraw from any ATM
displaying the VISA logo, in India and abroad.

• At VISA Electron merchant shops, it can also serve as your electronic purse, and money
gets debited instantly from your account, as you pay.

• The Card allows you to get mini-statements from Bank of Baroda ATMs, or to check the
balance in your account, avoiding visits to even our nearest branches.

Remittances (Baroda Money Express):

Business relations get strengthened and add to the trust when financial dealings happen on time.
The Baroda Money Express remittance facility ensure instant payments and transfer of funds,
saving you and your associates from waiting endlessly for funds to get credited.

This facility is available for both retail and corporate customers enabling efficient and easy
transfer of money. So no more delays in transfer of funds typical of Banker's Cheque, Demand
Drafts, Mail Transfers and Telegraphic Transfers.

The facility is available at 345 branches across 53 centres in India inclusive of all branches in
Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Mumbai, and Pune.

Key Benefits:

• Can be used to transfer money to the beneficiary's account in the same bank, or another
bank or even to their residential/office address, thus offering convenient options.

• This electronic remittance is the fastest way of transferring money from one place.

Demat:

The Depository system was introduced in India more than a decade back.

33
Today the word "Demat" is well known and most of the investors are conversant with the Demat
of shares and securities.

Presently, there are only two depositories functioning in India and they are:-

i. National Securities Depository Limited (NSDL) and

ii. Central Depository Services (India) Limited (CDSL).

Financial Institutions, banks, custodians and stockbrokers complying with the requirements
prescribed by Securities & Exchange Board of India (SEBI) can be registered as a Depository
Participant (DP).

A "Depository Participant" is an agent of the Depository (NSDL or CDSL) who is authorized

to offer depository services to investors. Thus to open a Demat account of an investor, a bank or
its branch has to get registered .

Baroda Health:

"Baroda Health" (Mediclaim Insurance Policy) for Bank’s Account holders.

With a view to offer value added services to our customers, we have developed a co-branded
insurance product called as "BarodaHealth" (Mediclaim Insurance Policy) for Bank's Account
holders w.e.f. 23rd February 2006 available at all our branches across the country.

What is Baroda Health Policy?

It is a Medical Insurance Scheme, available only to account holders of our Bank, which takes
care of the hospitalization expenses incurred by the customer up to the amount of sum insured, in
respect of the following eventualities.

 Any illness / disease

 Accidental injury and/ or any ailment.

 Any surgery that is required in respect of any disease or accident that has arisen during
the policy period

 The minimum hospitalization should be for 24 hours.

Collection Services >

Outward Bills for Collection:

All branches of Bank of Baroda have the facility of collecting Cheques, Demand Drafts, Interest
Warrants, Dividend Warrants, Refund Orders, Clean Bills and Documentary Bills from
customers and various centres.. All Cheques and other instruments are collected into properly

34
introduced accounts and sent for collection on the day of receipt from the customers or the next
working day.

Time Bound Collection:

All branches of Bank of Baroda are prompt in terms of the collections and forwarding of
cheques and other instruments. For metro cities, when financial instruments are presented in a
branch, the proceeds are credited to the customer's account on the same day in the following
week. For state capitals, (and centres with more than 100 branches), amount is credited only after
10 days. If these instruments are not collected within 14 days of lodgement, interest @ 2% per
annum over savings bank rate is paid and is credited to the customer's account, without the
customer having to claim it.

Branches also accept requests for collection of Loan Certificates / FDRs issued by Joint Stock
Cos.; prize money of Lottery Tickets, Foreign Currency Notes etc. The bank levies service
charges as stipulated from time to time.

Inward Bills for Collection:

Bills of Exchange, Promissory Notes, Hundi's etc. (Clean / Documentary), payable locally but
received from outstation branches / banks / parties are treated as "Inward Bills for Collection".
Also, Bills received from Bank of Baroda branches and from other banks, directly from drawers
or outstation parties are treated as Usance (??) Bills.

BOB Quick:

The Funds collected in this offering are credited to the customer's account within a guaranteed
period of 7 days. Bank of Baroda's BOB Quick ensures a better collection service, which
creates new avenues of income and ensures better investment of funds. All cheques amounting to
Rs. 25000/- and above are drawn on select banks and are eligible for "Quick inter station
clearing". Rs. 50/- per packet is charged for courier charges with an additional but nominal
collection charge.

National Clearing Special Facilities:

This product is an undertaking by the Reserve Bank of India, for inter city clearing of cheques
between the four metropolitan centres of Delhi, Mumbai, Chennai and Calcutta.

Key Benefits

• Settlement of transactions on the basis of net value of instruments.

• All financial instruments are cleared promptly with the introduction of mechanised
cheque processing, achieved through MICR technology. The concept of clearing has been
extended to clearance of outstation cheques also.

35
 • In addition to the four metropolitan centres, certain other centres have also been
identified for "One Way National Clearing". These centres are Nagpur, Ahmedabad,
Hyderabad, Bangalore, Pondichery, Trichy, Trivendrum, Vellore, Baroda, Erode,
Madurai, and more.

ElectronicClearingServices(ECS):

This is a unique system under which Bank of Baroda helps companies and institutions
making heavy payments disburse these amounts directly into the bank accounts of the
beneficiaries such as account holders, shareholders, investors etc.

WholesaleBanking:

Bank has identified the following new business segments as a step toward becoming Multi
Specialist Bank.

 Wholesale (Large & Mid Corporates)

 Urban Retail

 Small & Medium Enterprises

 Rural/Agri Business

Under Wholesale Banking the corporate customers are identified as Large and Mid corporates.
Companies having annual sales turnover of over Rs. 500 crore are classified as Large Corporate
and those having annual sales turnover between Rs 100 crore to 500 crore are classified as Mid
Corporate.

TREASURY:

DomesticOperations

Bank of Baroda has set up dedicated desks at the SITB, headed by experienced professionals,
for undertaking various types of treasury activities in different financial markets. Apart from
activities pertaining to management of funds and liquidity, the domestic treasury also handles
financial instruments like:

• Commercial Papers (CP)

• Certificate of Deposits (CD)
• Government Securities
• Treasury Bills (TB)
• Bonds and Debentures
• Equities and various other derivatives.

36
The products and services offered by SITB cater to the inter-bank market as well as to the
Corporate customers of the bank. The Bank is an active participant both in the inter-bank market
and the corporates for all the products.

The Bank offers its customers, including firms, companies, corporate bodies, institutions,
provident funds trusts, Regional Rural Banks, Urban Cooperative Banks and Non-Banking
Financial Companies opportunities to invest in Government Securities as allowed by Reserve
Bank of India for non-competitive bidding.

ForexOperations:

Bank of Baroda, one of the major public sector banks in India having a strong global presence
with a wide network of 61 overseas offices, including those of subsidiaries, spread over 16
countries, is considered as a market leader in foreign exchange operations in India. At present the
Bank is having branches / offices in countries like USA, UK, Belgium, South Africa, Hong
Kong, UAE, Oman, Fiji Islands, Mauritius, Seychelles, Bahamas, Guyana, Kenya, Uganda and
Zambia

The Bank has completed fifty years of operations in overseas territories and is poised to expand
its reach to countries like Tanzania and China, apart from consolidating its overseas operations in
those countries where the bank has already made its presence felt.

The modern state-of-the-art dealing room at its Specialised Integrated Treasury Branch (SITB) at
Mumbai provides the necessary wherewithal to its 95 designated branches across the length and
breadth of the country authorized to handle foreign exchange business of its clientele. The bank
has retained its primacy as a leading market maker both in spot and forward markets, along with
foreign exchange swap markets.

The forex dealing desk at the SITB is provided with all modern communication facilities and is
in the process of linking all its authorized branches via Reuters Automated Dealing System, to
provide on-line quotes for foreign exchange transactions.

Through its large network of authorized branches, the bank caters to the foreign exchange needs
of its clientele engaged in export and import trade and the SITB provides rates for conversion of
all major world currencies like U S Dollar, Sterling Pounds, Euro, Swiss Francs, Japanese Yen
and other exotic currencies. The services to the customers of the Bank include hedging of foreign
currency risks by providing forward covers and various derivatives product.

IN RURAL SECTOR :

37
 Bank’s passion for Rural Development

Bank of Baroda, since its inception on 20th July 1908 by the great visionary Maharaja Sayajirao
Gaekward III, has been in the forefront for social commitment with its innovative approaches
and products. A passion for agriculture and rural development and to serve the common man is
ingrained in the Bank’s philosophy.

In the past, the Bank has taken a number of initiatives such as opening of specialized outlets of
Gram Vikas Kendras (GVKs) and Multi Service Agencies (MSAs). Baroda Swarojgar Vikas
Sansthan (BSVS) is another initiative for capacity building by providing appropriate training for
skill upgradation to unemployed youth and women for their gainful employment.

Centenary Year commitments

During the Centenary Year, the Bank is committed to continue its initiatives towards Corporate
Social Responsibilities. Baroda Grameen Paramarsh Kendra (BGPK) – a centre for Knowledge
Sharing, Problem solving and Credit Counseling for the Rural Community, is one of such
initiatives.

Concept :

For the rural community, especially for the farmers, there is a big “Knowledge Gap” in
financial literacy, better farming practices, technology adoption, diversification of opportunities,
market linked prices, value addition services offered by various institutions, women
empowerment and also for employment opportunities for rural youth. In addition to this, the
deficiencies/ ignorance about credit related repayment during distress situations call for credit
counseling.

With a view to assist the rural community, the Bank has conceptualised “Baroda Grameen
Paramarsh Kendra (BGPK)” and its implementation by the dedicated team, which would build
the confidence of the rural people.

Activities to be covered:

• Financial Education and Financial Inclusion

• Information sharing and problem solving on technical issues
• Credit counseling

Services offered: (Illustrative Only)

1. Financial Education and Financial Inclusion:

o Spreading “Financial Awareness” among rural masses through village level

meetings and help them to choose suitable banking products.
o 100% Financial Inclusion in 5-10 villages.

38
 2. Information sharing and problem solving:

o Interface sessions with the Subject Matter Specialists from Knowledge

institutions like Agri. Universities, KVKs, NGOs, etc.
o Providing extension services to the farmers by organizing / participating in
Grameen melas, TV & Radio talks, Film / Puppet shows, etc.
o Maintaining a small library containing books, journals, audio-visual aids, etc.
o Information on the prices of Agriculture commodities in various mandis across
the country so that the farmers can sell their products at best price.

3. Credit Counseling:

o Providing credit counseling on repayment pattern, rephasement, reschedulement

and fresh credit during distress situations for rural people.

Baroda Fixed Deposit Account

Why just let your money idle, when you can idle it with interest?
Depending on the period, our various fixed deposit products help you get the best out of your
savings by offering you good interest rates.

Enjoy both security and competitive rates of interest on your deposits with any of the following
products. Click each product for more information.

• For Deposits upto 12 months:

o Short Deposits

• For Deposits over 12 months:

o Fast Access Deposit Scheme

o BoB Flexible Fixed Deposit Scheme
o Regular Income Plan

AGRICULTURE:

AGRICULTURAL FINANCE SCHEMES :

Agriculture being the backbone of the Indian Economy, Bank of Baroda, is contributing
significantly in accelerating the pace of rural development by providing finance to farmers by
way of following agriculture products.

39
 • Baroda Kisan Credit Card (BKCC)- Empowering the farmer : The BKCC facility
designed exclusively for the benefit of the farmers aims to provide them the opportunity
to manage and utilise their funds in the manner they deem fit. BKCC provide adequate
and timely support to farmers for their production needs e.g. purchase of quality inputs,
investment requirements like purchase of agriculture implements/tractor etc, farming
expenses towards farm maintenance, unforeseen family expenses (consumption) and
maintenance of non-farm activities.

• Purchase of agricultural implements including indigenous improved ones being utilised

for field operations including harvesting/sorting/grading, for not only to farmers, but also
for land-less labourers.

• Small Scale Industries

• A Small Scale Industrial Unit, is one which is engaged in the manufacture, processing
or preservation of goods or is a servicing and repair workshop undertaking repairs of
machinery used for production, mining or quarrying or custom service unit (except water
service units), having investments in plant and machinery (original cost) not exceeding
Rs. 1 Crore.
• Bank of Baroda has special Loans and Advances for the purpose of fixed capital
investment and also for working capital requirement.

Baroda General Credit Card Scheme (BGCC):

Bank of Baroda presents a tailor-made Credit Card Scheme for the citizens belonging to the rural
and semi-urban parts of India. Baroda General Credit Card Scheme (BGCC) is designed to
provide hassle free and easy credit access to people in the rural and semi-urban areas.

Key Benefits

• No insistence on security, purpose or end-use of credit

• Upto a maximum limit of Rs.25000/-

• Unlimited number of withdrawals and repayments (within the credit limit)

40
Bank of Baroda Next Has Miles to go!

ABOUT US

Bank of Baroda, one of India's oldest and largest PSU banks, has always made a concerted effort
to stay in tune with changing times and consumer preferences.

BARODA NEXT – “ STATE-OF-THE-ART- STRAIGHT FROM THE HEART”

Baroda Next is Bank of Baroda's initiative to offer high-tech banking solutions without losing
the human touch. It aims to bring in new technologies, systems and processes to offer fast,
prompt and paperless banking solutions. At the same time, it also focuses on nurturing long term
relationships and superior customer service.

STICKMAN

The protagonist Stickman is our customer who discovers the joy of technology in banking with
Bank of Baroda. In a series of ads, stick man faces a number of tricky situations which he
resolves using Bank of Baroda’s services in a humorous and endearing manner. You will
experience the magic as you further surf the pages of this site

PRODUCT OF BARODA NEXT:

ONLINE PAYMENT OF INSURANCE PREMIUMS

To unleash the power of technology for the convenience of our customers, we have devised a
series of e-banking products and services.

Through Baroda Connect internet banking facility, we let you pay your insurance premium
online so that you don't have to run around to pay your premiums.

Because at Bank of Baroda, we understand time is very precious to you, and we are committed to
compliment your effort to do things faster with less strain or stress to you.

HOME LOAN: MOVE INTO DREAM HOME IN 6 DAYS:

41
 You don't have to wait for your dream home for long. Through simplified processing systems, we
offer you home loan in just 6 days. The loan is available for construction of new house, purchase of
new/old house/flat/residential plot and extension/renovation of existing house/flat.

Loans are also available for those who wish to transfer their existing home loan from another
financial institution/bank to Bank of Baroda.

ONLINE UTILITY BILLS PAYMENT :

To unleash the power of technology for the convenience of our customers, we have devised a series of
e-banking products and services.

Now you can stop worrying about due dates of your bills and live a relaxed life as we make life easier
by offering Baroda Connect internet banking facility to pay your bills online.

Because at Bank of Baroda, we understand time is very precious to you, and we are committed to
compliment your effort to do things faster with less strain or stress to you.

INDIAFIRST LIFE INSURANCE:

Joint venture on bank of baroda & Legal & General & Andhra Bank

GOLD COIN:

Bank of Baroda offers sale of 24 Karat 999.9 pure Swiss made gold coins with Assay Certification in
the denomination of 2, 4, 5 & 8 grams in round shape and 10 grams bar. These coins are available for
sale at select POS Branches. Baroda Vidyasthali Loan

Baroda Vidyasthali Loan is a special scheme for financing Educational Institutions.

42
PURPOSE

To meet the financial requirements for setting up the institutions which includes construction of
building, purchase of equipment etc. for the new set up as also renovation of the existing facilities,
purchase of instruments for imparting education training to the students.

Baroda Arogyadham Loan:

PURPOSE

To meet the financial requirements for setting up of new Nursing Home/Hospital including
Pathological Laboratory, Expansion/renovation/modernization of existing Nursing Home/ Hospital
including Pathological Laboratory, Purchase of medical diagnostic equipments as also office
equipments, viz. computers, air conditioners, office furniture, Purchase of ambulance etc and to meet
working capital requirements.

Baroda Artisans Credit Card (BACC):

PURPOSE

• To provide adequate and timely assistance to the artisans to meet their credit requirements -
both investment needs as well as working capital - in a flexible and cost effective manner. The
scheme is implemented in rural and urban areas.

Loans Under Interest Subsidy Eligibility Certificate Scheme of Khadi & Village Industries
Commission (KVIC-ISEC)

Purpose

To finance institutional financing agencies for lending to Khadi & Village Industries

CREDIT CARD:

BOBCARD EXCLUSIVE WOMAN

43
DESCRIPTION
BOBCARD Exclusive Woman Card is a tribute to the glorious women of India who are acclaimed for
their contributions to the human civilization. BOBCARDS presents this Card to offer its gratitude to the
great women souls of the land.
This card is welcomed at over 29 million Merchant Establishments and over 8,00,000 ATMs

MARKETING STRATEGY OF THIRD PARTY PRODUCT IN GENERAL AND NON

LIFE PRODUCT :

History of insurance

Insurance began as a way of reducing the risk of traders, as early as 5000 BC in China and 4500
BC in Babylon. Life insurance dates only to ancient Rome; "burial clubs" covered the cost of
members' funeral expenses and helped survivors monetarily. Modern life insurance started in
17th century England, originally as insurance for traders[7] : merchants, ship owners and
underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the famous Lloyd's of
London.

The first insurance company in the United States was formed in Charleston, South Carolina in
1732, but it provided only fire insurance. The sale of life insurance in the U.S. began in the late
1760s. The Presbyterian Synods in Philadelphia and New York created the Corporation for
Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759;
Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two
dozen life insurance companies were started, but fewer than half a dozen survived.

Prior to the American Civil War, many insurance companies in the United States insured the
lives of slaves for their owners. In response to bills passed in California in 2001 and in Illinois in
2003, the companies have been required to search their records for such policies. New York Life
for example reported that Nautilus sold 485 slaveholder life insurance policies during a two-year
period in the 1840s; they added that their trustees voted to end the sale of such policies 15 years
before the Emancipation Proclamation.

44
 Insurance developed from the fourteenth century as a means of spreading huge risks attendant
on early maritime enterprises; life and fire insurance developed later. The main classes of
insurance are life and other personal insurance, marine insurance, accident or property insurance
and liability insurance when the sum becomes payable when legal liability is incurred as for
personal injuries or professional negligence to another.

LIFE INSURANCE :

life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to
the designated beneficiaries if an insured event occurs which is covered by the policy. In return,
the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums. There
may be designs in some countries where bills and death expenses plus catering for after funeral
expenses should be included in Policy Premium. In the United States, the predominant form
simply specifies a lump sum to be paid on the insured's demise.

Life-based contracts tend to fall into two major categories:

• Protection policies - designed to provide a benefit in the event of specified event,

typically a lump sum payment. A common form of this design is term insurance.
• Investment policies - where the main objective is to facilitate the growth of capital by
regular or single premiums. Common forms (in the US anyway) are whole life, universal
life and variable life policies.

• Types of life insurance

• Life insurance may be divided into two basic classes – temporary and permanent or
following subclasses - term, universal, whole life and endowment life insurance.

There are three key factors to be considered in term insurance:

• Face amount (protection or death benefit),

• Premium to be paid (cost to the insured)
• Length of coverage (term)

Various insurance companies sell term insurance with many different combinations of these
three parameters. The face amount can remain constant or decline. The term can be for one or
more years. The premium can remain level or increase. Common types of term insurance include
Level, Annual Renewable and Mortgage insurance. Level Term policy has the premium fixed for
a period of time longer than a year. These terms are commonly 5, 10, 15, 20, 25, 30 and even 35
years. Level term is often used for long term planning and asset management because premiums
remain consistent year to year and can be budgeted long term. At the end of the term, some
policies contain a renewal or conversion option. Guaranteed Renewal, the insurance company
guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the
insured and with a premium set for the insured's age at that time. Some companies however do
not guarantee renewal, and require proof of insurability to mitigate their risk and decline

45
renewing higher risk clients (for instance those that may be terminal). Renewal that requires
proof of insurability often includes a conversion options that allows the insured to convert the
term program to a permanent one that the insurance company makes available. This can force
clients into a more expensive permanent program because of anti selection if they need to
continue coverage. Renewal and conversion options can be very important when selecting a
program.

What is General Insurance?

Insurance other than ‘Life Insurance’ falls under the category of General Insurance. General
Insurance comprises of insurance of property against fire, burglary etc, personal insurance such
as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are
also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.

Non-life insurance companies have products that cover property against Fire and allied perils,
flood storm and inundation, earthquake and so on. There are products that cover property against
burglary, theft etc. The non-life companies also offer policies covering machinery against
breakdown, there are policies that cover the hull of ships and so on. In respect of insurance of
property, it is important that the cover is taken for the actual value of the property to avoid being
imposed a penalty should there be a claim. Where a property is undervalued for the purposes of
insurance, the insured will have to bear a ratable proportion of the loss There are general
insurance products that are in the nature of package policies offering a combination of the covers
mentioned above. For instance, there are package policies available for householders, shop
keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering
standard covers, insurers also offer customized or tailor-made ones. Insuring anything other than
human life is called general insurance. Examples are insuring property like house and belongings
against fire and theft or vehicles against accidental damage or theft. Injury due to accident or
hospitalization for illness and surgery can also be insured. Your liabilities to others arising out of
the law can also be insured and is compulsory in some cases like motor third party insurance.

THIRD PARTY INSURANCE:

There are two quite different kinds of insurance involved in the damages system. One is Third
Party liability insurance, which is just called liability insurance by insurance companies and the
other one is first party insurance.

46
A third party insurance policy is a policy under which the insurance company agrees to
indemnify the insured person, if he is sued or held legally liable for injuries or damage done to a
third party. The insured is one party, the insurance company is the second party, and the person
you (the insured) injure who claims damages against you is the third party.

Salient Features of Third Party Insurance

Ø Third party insurance is compulsory for all motor vehicles. In G. Govindan v. New India
Assurance Co. Ltd.[2],Third party risks insurance is mandatory under the statute .This provision
cannot be overridden by any clause in the insurance policy.

Ø Third party insurance does not cover injuries to the insured himself but to the rest of the world
who is injured by the insured.

Ø Beneficiary of third party insurance is the injured third party, the insured or the policy holder
is only nominally the beneficiary of the policy. In practice the money is always paid direct by the
insurance company to the third party (or his solicitor) and does not even pass through the hands
of the insured person.

Ø In third party policies the premiums do not vary with the value of what is being insured
because what is insured is the ‘legal liability’ and it is not possible to know in advance what that
liability will be.

Ø Third party insurance is almost entirely fault-based.(means you have to prove the fault of the
insured first and also that injury occurred from the fault of the insured to claim damages from
him)
Ø Third party insurance involves lawyers aid

Ø The third party insurance is unpopular with insurance companies as compared to first party
insurance, because they never know the maximum amounts they will have to pay under third
party policies.

THIRD PARTY PRODUCT :

LIFE INSURANCE: - INDIAFIRST LIFE INSURANCE

GENERAL INSURANCE: - BARODA HEALTH & NICL

47
JOINT VENTURE OF:

& &

Vision:

“Become a life insurance and pensions business leader in providing significant value for all
stakeholders through true customer delight”

Bank of Baroda: is the 3rd largest public sector bank in the country with an enviable network
of over 3000 branches that spreads across the geography of India and over 70 branches across 22
countries globally! This behemoth financial institution is over 100 years old and has been built
on financial prudence, corporate governance and most importantly – the trust of valuable
customers like you.

Andhra Bank has been serving the Indian customer for over 85 years and currently has a
network of over 1500 branches. The bank has developed best in class deposit and lending
schemes for its valued customers.

Both the banks are nationalized and provide best in class products and services to every Indian
citizen.

48
Legal & General is one of UK’s leading financial institutions with a heritage of over 150 years.
It provides life assurance, pensions, investments and general insurance plans to over 5 crore
customers across countries. Legal and General brings rich fund management and insurance
experience into India and aspires to provide first-rate products and services to the doorstep of
every Indian customer in conjunction with the 2 trusted public sector banks.India First Life
Insurance Co. Ltd. is a 3 way joint venture of Bank of Baroda, Andhra Bank and Legal &
General (UK), in which Bank of Baroda holds major share of 44% and remaining 30% & 26%
are shared between Andhra Bank and Legal & General (UK) respectively. Bank of Baroda
entered into a Strategic Marketing tie-up with the company for distribution of its life insurance
products across the Bank’s branches on 12th November, 2009 at Mumbai. Banking Channel is
one of the best platforms for reaching out to the masses more particularly in rural and semi-urban
area where the vast potential lies for insurance business. Bank’s foray into life insurance
business through this joint venture route will help its customers to have convenience of all at one
place at the branches of the Bank in catering to their insurance needs. The Company since plans
to initially focus on bancassurance model, it will be largely benefited by the Bank’s large
presence throughout the country in augmenting its business. With this tie-up, the Bank’s
customers will get easy access to the insurance schemes of India First Life Insurance Co. Ltd.
This joint venture brings together a real understanding of the Indian consumers by the promoter
banks with international best practices developed by Legal & General. We aim to provide world
class products and services that are customized to meet the requirements of the Indian consumer .
The three promoters put together have over 360 combined years of service to customers across
the world an envious achievement. The company plans to initially focus on the bancassurance
model. It plans to leverage the existing customer base of over 50 million customers of the
promoter banks spread across 4,500 branches in the country. Each bank has its own
segmentation and profile of customers. Both have a huge semi urban and rural
network. The challenge for the company is to optimally exploit the entire potential
provided by both Bank of Baroda and Andhra Bank. The new corporate identity
represents the company's personality. IndiaFirst aims to be modern in its outlook, creative in
its approach, energetic in its attitude, focus on principles, cheerful and vibrant yet simple and
clear in its communication. It aims to always place the Indian consumer First in everything it
does. Our philosophy of putting the customer First together with our cost effective distribution
model, will enable us to make a real long-term contribution to the Indian economy by broadening
the choices available to our customers as they harvest the fruits of their economic success and
invest them for a stable long term future for themselves and their families. They are a testimony
to the commitment of our promoters of always putting our customers First in everything we do.
We represent India's new found confidence, its resolve, grit and spirit. The wave in the logo
represents the colors of the three promoters Bank of Baroda, Andhra Bank and Legal & General.
Dr. Nandagopal added, IndiaFirst is an open, modern and hardworking organization. We believe
in doing things right for the customer, the distributors and our shareholders. We as a company
are committed to providing value for money products and service excellence to our
customers.

IndiaFirst Life Insurance has, so far, collected Rs 200 crore as premium in four months of
operations and is all set to release more products in the current financial year, according to Dr P.
Nandgagopal, Managing Director and CEO.At a press meet here on Thursday, he said the
company — a joint venture between the Andhra Bank, the Bank of Baroda and Legal & General
— had made rapid strides, with only three products. “The company is offering IndiaFirst

49
Education Plan, IndiaFirst Savings Plan and IndiaFirst Future Plan. We will release two more
products on April 21 - Creditlife and Groupterm. In the current financial year, we are planning
six to eight new products,” he said.He said the company currently was selling its products
through3,000 branches of Andhra Bank and Bank of Baroda.“Both the banks put together have
4,500 branches and we will in a few more months' time extend our services to all the branches,”
he added.“In future, the products may be sold through the regional rural banks of bothAndhra
Bank as well as Bank of Baroda, he said.Dr Nandagopal said the company was also planning to
have of its own and in Andhra Pradesh initially three branches would be set up — one each in
Hyderabad, Vijayawada and Visakhapatnam.

During the current financial year, 50 such independent branches may be set up in the country.He
said, “Our aim is to offer simple products suited to the needs of our customers, fairly priced and
truthfully delivered. We insist on showing the audio-visuals to our customer and explain all the
features of the products to them.”

SALIENT FEATURES AND BENEFITS:

• You can build your savings corpus systematically, through investments in various funds.
• You secure the future of your family, as they get an assured lump sum benefit
immediately, in case of your untimely death.
• You have the option to invest in debt, equity or a balanced fund, where you choose the
proportion of your investment into each!
• You can make the most of your investments by ‘switching’ from one fund to another.
• You have the option to build up your corpus through additional deposits.
• You get easy access to your money by being able to withdraw partially.
• Under Section 80C you can enjoy Tax Benefits on the premium you invest.
• You also get tax benefits on the benefits you receive at maturity of your payment.

PRODUCT OF INDIAFIRST INSURANCE:

Your child, your pride… Our responsibility"

50
We understand that, as a parent, you want to give nothing but the best to your child. Be it your
child’s education or any dream. You will not allow anything to come in the way of your child’s
success.
To help you give your child everything that you have dreamt of, we have introduced the
IndiaFirst Education Plan.
BENEFITS AND FEATURES:

• Your child will always receive funds at every momentous occasion in his/her life.
• Be it High School / College/ Professional course or any other life event!
• Your child gets financial security even if any untoward incident results in your death /
disability.
• We will do this by paying the remaining premiums into your policy.
• Your child, who we may also refer as the ‘ Beneficiary ‘, receives the Fund Value at
Maturityeven if the ‘Sum Assured’ has been paid out on the unfortunate incident of your
demise.
• You have the option to invest in debt, equity or a balanced fund, where you choose the
proportion of your investment into each!
• You can make the most of your investments by ‘switching’ from one fund to another.
• You have the option to build up your corpus through additional deposits.
• You get easy access to your money by being able to withdraw partially.
• Under Section 80C and 10(10D) you can enjoy Tax Benefits on the premium you invest

You evolve, you mature... And we help you prosper"

The best years of ‘Life’ ought to be your retirement years. You

have worked hard all your life, and you deserve the best things in life in these golden years.

51
We identify with you. We are therefore presenting the perfect plan that will empower you for
this golden period. The IndiaFirst Future plan helps you set-aside money in your prime years
when are generating income and enjoy a healthy lump sum or a steady income in your retirement
years.
BENEFITS AND FEATURES

• You can choose the age at which you want to retire.

• You have the option to invest in Debt, Equity or a Balanced fund, where you choose the
proportion of your investment into each!

• You can make the most of your investments by ‘switching’ from one fund to another.
• You have the option to build up your retirement corpus through additional deposits.

• You get easy access to your money by being able to withdraw partially.
• You can enjoy tax free returns up to 1/3rd of the fund value as at your chosen date of
retirement (called Vesting Age).

You dream, you aspire…. And we help you achieve!

Each of us aspires to own a house, dreams of exotic overseas

vacations, wishes to fund our children in all their life’s events, hopes to have sufficient
retirement funds…

The IndiaFirst Savings Plan helps you grow and develop a body of wealth through market linked
investments. We help you save systematically and provide you avenues to invest your savings in
funds, on the basis of your risk appetite.

BENEFITS AND FEATURES:

52
 • Your child will always receive funds at every momentous occasion in his/her life.
• Be it High School / College/ Professional course or any other life event!
• Your child gets financial security even if any untoward incident results in your death /
disability.
• We will do this by paying the remaining premiums into your policy.
• Your child, who we may also refer as the ‘ Beneficiary ‘, receives the Fund Value at
Maturityeven if the ‘Sum Assured’ has been paid out on the unfortunate incident of your
demise.
• You have the option to invest in debt, equity or a balanced fund, where you choose the
proportion of your investment into each!
• You can make the most of your investments by ‘switching’ from one fund to another.

Your protection, our security…

BENEFITS AND FEATURES:

• Enjoy the benefits of a life cover for a period of up

to 30 years at an extremely reasonable price

The life assured's family is secured, as they get an

assured lump sum benefit immediately, in case of
the life assured's untimely death

Under Section 80C you can enjoy tax benefits on

the premium you invest

• Under Section 10 (10D) your family also gets tax

break on the benefits they receive from your plan

Risk factors

• There is no maturity or survival benefit payable

under this plan

53
 • this is a non participating pure term
assurance

Your people, your trust… our accountability

BENEFITS AND FEATURES:

• You can now provide life cover at reasonable rates to your members – be it your
employees or your customers.
• You have the flexibility to automatically cover the life of all your members or offer it as
a voluntary scheme where your members may choose to participate.
• You have the flexibility to choose between three premium paying frequencies.
• The plan provides you the flexibility of adding new members during the plan year.
• You can also opt for the Employees Deposit Linked Insurance (EDLI) scheme under this
plan.
• The plan is renewed yearly.
Risk factors:
The sum assured is paid to the nominee through you, the master policyholder

• You may deduct any amount due before paying the proceeds to the nominee. However,
this is not applicable under EDLI
• Minimum group size is 50.

• Tax laws are subject to change from time to time. Please speak to your tax consultant
before deciding to invest in any financial planning tool. Please read the entire brochure to
understand how this plan can work for you.

54
 You build your dreams, we help protect them…

BENEFITS AND FEATURES:

• You can enhance your product offering by combining insurance with your credit or
loan products
• You can protect your assets against uncertainty.
• We help you do this by paying the outstanding loan amount in the unfortunate event of
the member’s demise
• You have the flexibility to choose the coverage and the mode of payment you want to
offer your members.

IndiaFirst Annuity Plan:

This is a traditional Immediate Annuity plan, which can be purchased by paying a lump sum
amount. You get the choice to select your retirement age, and we pay you a fixed annuity on a
monthly basis for life.

Key Features

• You can choose your retirement age as per your need; You can reap the returns starting
anytime between 40 and 80 years.
• You can receive a definite regular monthly income through your years of retirement.

2. WHAT IS THE ELIGIBILITY FOR ENTERING THE PLAN?

The eligibility criterion is as under:

Minimum age at entry 40 years (attained)
Maximum age at entry 80 years (attained)

3.WHAT IS THE MODE FOR PAYMENT OF PREMIUMS?

This is like a single premium policy. You make a single lump sum payment to enter the plan. This

55
payment is called the purchase price paid through cheque, DD or ECS.

4.WHAT IS THE TERM FOR ANNUITY PAYOUTS?

The term for annuity payouts is as follows:

Term for Annuity payouts Single Life Annuity
i.e. we will pay you the annuity till as long as you live.

IN GENERAL INSURANCE WE HAVE TIE UP WITH NATIONAL INSURANCE

COMPANY LIMITED WHICH PROVIDE BARODA HEALTH POLICY :

COMPANY PROFILE:

National Insurance Company Limited was incorporated in 1906 with its Registered office in
Kolkata. Consequent to passing of the General Insurance Business Nationalisation Act in 1972,
21 Foreign and 11 Indian Companies were amalgamated with it and National became a
subsidiary of General Insurance Corporation of India (GIC) which is fully owned by the
Government of India. After the notification of the General Insurance Business (Nationalisation)
Amendment Act, on 7thAugust 2002, National has been de-linked from its holding company GIC
and presently operating as a Government of India undertaking.

National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies
of India, carrying out non life insurance business. Headquartered in Kolkata, NIC's network of
about 1000 offices, manned by more than 16,000 skilled personnel, is spread over the length and
breadth of the country covering remote rural areas, townships and metropolitan cities. NIC's
foreign operations are carried out from its branch offices in Nepal.

Befittingly, the product ranges, of more than 200 policies offered by NIC cater to the diverse
insurance requirements of its 14 million policyholders. Innovative and customized policies
ensure that even specialized insurance requirements are fully taken care of.

National Insurance Co Ltd awarded "Most Preferred Non Life Insurer" by CNBC AWAAZ
Consumer Awards 2009

56
WE ARE:

The fastest growing Non-life Insurance Company in India The second largest Non-life Insurance
Company in India Internationally recognized as one of the top 5 General Insurance Companies in
the Asia Pacific.

CUSTOMER SERVICE INITIATIVES

Establishing Connectivity among 1000 offices with in the country Facility to get Policy through
NET Tie-ups with leading Banks, Corporate Sectors, State Government Conciliatory Fora for
facilitating quick settlement of Motor Third Party claims, Compromise settlement, Lok Adalat
and Jald Rahat Yojana.Zonal Advisory Committees set up to maintain progress.

PRODUCT DEVELOPMENT

• More than 200 products available to cater to the needs of various sectors of the economy.

• Continuous product development to meet emerging needs of society and industry.

• R&D cell set up at Head Office for distinctive product innovation relevant to indigenous
conditions and rural masses.

The paid-up share capital of National is Rs.100 crores. Starting off with a premium base of 500
million rupees (50 crores rupees) in 1974, NIC's gross direct premium income has steadily grown
to 42799 million rupees (4279.9 crores rupees) in the financial year 2008-2009.

National transacts general insurance business of Fire, Marine and Miscellaneous insurance. The
Company offers protection against a wide range of risks to its customers. The Company is
privileged to cater its services to almost every sector or industry in the Indian Economy viz.

Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy,
Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment,
Space Research etc.

National Insurance is the second largest non life insurer in India having a large market presence
in Northern and Eastern India.

57
The steady growth in premium income has been commensurately matched by profits over the
years. As of March 2009, NIC's general reserve stood at 13080.5 million rupees (1308.05 crores
rupees) with a net worth of 5015.97 million rupees (501.59 crores rupees) signaling strong
financial fundamentals. No wonder than that NIC has been accorded “AAA/STABLE” financial
strength rating by CRISIL rating agency, which reflects the highest financial strength to meet
policyholders’ obligations.

Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy,
Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment,
Space Research etc.

National Insurance is the second largest non life insurer in India having a large market presence
in Northern and Eastern India.

The steady growth in premium income has been commensurately matched by profits over the
years. As of March 2009, NIC's general reserve stood at 13080.5 million rupees (1308.05
crores rupees) with a net worth of 5015.97 million rupees (501.59 crores rupees) signaling
strong financial fundamentals. No wonder than that NIC has been accorded “AAA/STABLE”
financial strength rating by CRISIL rating agency, which reflects the highest financial
strength to meet policyholders’ obligations.

POLICIES:

MOTOR POLICY : TWO WHEELER

Policy indemnifies bona fide owner of Two wheeler, used for personal purposes against the loss
due to damage / theft / burglary of vehicle or any part there of, electrical accessories and also
includes cover against liability towards third party personal injury and property damage1.

BARODA HEALTH:

Baroda Health policy is a unique Health cum Accident Policy designed especially for the a/c
holders of Bank of Baroda. The entire family consisting of the a/c holder, spouse and 2
dependent children can be covered under this policy. This policy covers Hospitalization expenses
for a/c. holder and family. In case of Hospitalization Expenses, the entire family is covered for
the Floater Sum Insured as opted for, i.e., either one or all members of the family can utilize the
Sum Insured during the policy period.

"Baroda Health" (Mediclaim Insurance Policy) for Bank’s Account holders.

58
With a view to offer value added services to our customers, we have developed a co-branded
insurance product called as "BarodaHealth" (Mediclaim Insurance Policy) for Bank's Account
holders w.e.f. 23rd February 2006 available at all our branches across the country.

What is Baroda Health Policy?

It is a Medical Insurance Scheme, available only to account holders of our Bank, which takes
care of the hospitalization expenses incurred by the customer up to the amount of sum insured, in
respect of the following eventualities.

• Any illness / disease

• Accidental injury and/ or any ailment.

• Any surgery that is required in respect of any disease or accident that has arisen during
the policy period

• The minimum hospitalization should be for 24 hours

Key Benefits :

• Very low premium

• In this co-branded product, single premium (generally payable for a single person)
is payable and Medical Health insurance cover is available to family of -4- (self,
spouse and 2 dependent children) up to the amount insured without any additional
premium.

• A member or all the members in insured family can avail hospitalization benefits
during the policy period, to the extent of aggregate sum not exceeding the sum
insured.

• Premium paid is eligible for Income Tax exemption under Section 80 D as per
Income Tax Rules.

Salient features:

• No medical examination required for commencement of health cover.

• Pre-existing diseases also get coverage after 3 continuous claim-free policy years.

• Coverage options available: 8 slabs ranging from Rs. 50,000/- to Rs. 5,00,000/-
per family of 1+3.

59
 • Upper age limit of primary member (first named person) is allowed upto 80 years,
if a person obtains the insurance cover before completion of 65 years and
continue to renew the policy upto the age he wishes to or 80 years, whichever is
earlier.

• The scheme is administered through Third Party Administrators (TPAs) for

settlement of Hospitalization Claims under the insurance cover.

• The insured individuals get cashless hospitalization facility also in the selected
hospitals through TPAs. The whole process is hassle-free and treatment upto the
limit of insurance is available without any payment at the time of admission or
discharge. Payment of hospital bill up to the sum insured will be taken care of by
the TPA directly.

Mediclaim Policy

1. Salient Feature
2. Scope of Cover
3. Additional Features
4. Exclusions

1. Salient Feature

Hospitalisation for illness, disease or accident, whether including surgery or not, imposes
heavy financial burden on individuals, families, employers and welfare bodies.

2. Scope Of Cover

Mediclaim insurance policy has been devised under the aegis of the Government of India.
The policy provides the following benefits.

1) Reimbursement of hospitalization expenses which are reasonably and necessarily incurred,

under the following heads:
Room, boarding expenses as provided by the hospital/nursing home.Fees of surgeon, anesthetist,
medical practitioner, consultant and specialisExpenses on account of anesthesia, blood, oxygen,
operation theatre charges, surgical appliances, medicines and drugs, diagnostic material, X-ray,
dialysis, chemotherapy, radiotherapy, cost of pacemaker, artificial limbs and cost of organs and
similar expenses.

60
 ANALYSIS

Q1.Do know about the insurance ?

yes no Total

57 3 60

Percentage% 95 5

Every one in
know about
insurance 95%
people are
aware about
insurance
policy of
different
company,and
they know that
insurance give
security to
family so that
children
education go
ahead and make life easy and financially strong.

Q2..Are you aware about the insurance policy provide by the bank?

yes no Total

43 17 60

percentage 72 28

61
72% people are aware about the insurance provide the bank and only 28% are not aware

Q3. .If yes then which life insurance or general insurance you are using ?

a) life insurance policy (LIC)

b) Reliance life insurance

c)Bajaj insurance

d)HDFC insurance

e)Indiafirst life insurance

f)general insurance- NICL etc..

Q4 .From how long you are using life insurance of that company?

2years 5 years 10 years Above total

10years

13 22 19 8 62

% 20.9 35.4 30.6 12.9

62
Maximum people are using insurance from over last 5 years (35%), 13 % are using insurance
from 2 years , 31% are using from 10 years.

Q5. .what is time interval of your premium payment ?

monthly quaterly annually Half yearly total

7 - 52 1 60
% 11.6 86.6 1.6

63
86% people pay their premium payment by annually according to their annual income,11.6%
pay monthly and only 2% pay their premium half yearly and no one pay quaterly accoording to
survey report.

Q6 .Are you aware about the insurance of policy of bank of baroda?

yes No total

20 40 60

% 40 60

Only 33% people know about Indiafirst which is the joint venture of Bank of Baroda & legal &
general & Andhra bank and 67% people don’t know about the Indiafirst insurannce due to lack
of awareness , lack of marketing strategy and the most important thing is Indiafirst in started in
2009 in November so, it is very new company in compare to LIC.Reliance,Bajaj Allianz etc it
takes time to capture the market.

64
Q7. If yes then which insurance policy you are using ?
a) Indiafirt life insurance

b)NICL

Many people have opt general insurance like NICL and many go for Indiafirst insurance.

Q8 .Which features do you like or dislike of that product?

a) saving plan

b)future plan

c)education plan

d) term plan (which recently start under my training period)

Q9. Have you taken insurance for your children ?

yes No total
47 13 60
percentage 78.3 21.6

65
78% people have taken insurance for their children for betterment of their future and 22%
people have not taken insurance for their children according to their income ,people who have
age above 35 have taken insurance for their children.

Q10 . Do you face any problem at the time of renewal of your account in bank of baroda ?

yes No total
10 50 60
% 16.6 83.3

Only 16.6 % face problem at the time of renewal because service provide by the bank of baroda
is very good 83% are satisfy and happy.

66
Q11. Why life insurance so important for you?

a) security

b)rebate on tax

c)life cover

d)children education go ahead

e) financial support to family

Q12 . What are the problem do you face in bank of baroda (in terms of insurance) if any please
specify ?

Ans- lack of awareness

b)lack of marketing strategy

c) less door to door service

d)less advertisement

e) no one there to tell about information about the Indiafirt insurance.

Q13 . Do you want to give any suggestion to bank of baroda in respect of service provide in
isurance?

Ans- More aggressive marketing strategy is required beacause very few people know about the
Indiafirst life insurance even the customer who has account in Bank of Baroda from 20 years

67
they even don’t kow about the Indiafirst.Door to door service should be there , more
advertisement and more awareness is required .

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 FINDINGS:

• Most of the people of ALLAHABAD know about the insurance policy provide by the
bank .Many people have done LIC ,Reliance,Bajaja Allianz insurance.

• According to their income people have choose insurance policy .

• People opt for insurance due to :

It make family secure

Risk cover

Tax benefits

Finanacial support

Investment

• According to survey I collect 60 customer where I find that only 20% know about third
party and 40% don’t know about about the INDIAFIRST LIFE INSURANCE.

• Maximum people have opt insurance policy over 10 years of other company.

• Age of above 35 years they have opt insurance policy for their children for her future

• I found that very few people have taken INDIAFIRST life insurance policy due to less
marketing , less advertisement .

• Another reason is that INDIAFIRST is very new if we compare from other insurance
company like LIC ,RELIANCE.

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• No facility of door to door service.

• Plan is good but marketing is not appropriate.No special employee is appoint who take
care of INDIAFIRST OR NICL in different branches of ALLAHABAD.

• One thing I would like to add that service provide by BANK OF BARODA is very good
it observe by survey.

• Recently BARODA NEXT is launch due to which life become easy for customer of
BANK OF BARODA.

SUGGESTION:

• The first and the foremost suggestion which I would like to give is that there should more
awareness of insurance policy of BANK OF BARODA , proper marketing strategy
should be plan.

• Door to door service.

• More advertisement by distributing pamphlets, hodings,commercial add on T.V like

BARODA NEXT.

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• More awareness

• Proper marketing should be done for insurance policy of Bank of Baroda.

• First Bank of Baroda have to convince the old customer of account holder of Bank. Then
you have to catch others.

• They should identify the threats and challenges prevailing in the market and according to
that they should form strategy to be more unique.

• As we all know that BANK OF BARODA is third position among all bank ,they have
more customer as compare to other bank they can easily attract more people for
insurance ,by using the goodwill of bank.

• Service of BANK OF BARODA is very good this feature can also use for convincing the
people.

• It does not take any commission to customer for policy like LIC take, this point also use
for convincing the people.

• INDIAFIRST insurance for different people .

Like savings plan is good for business

Service people go for future plan , they can also take education plan for their chidren.
Such thing we can say to customer for insurance.

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 CONCLUSIONS:

Today organization are knowledge based and their success and survival depend on creativity ,
innovation , discovery and inventiveness.An effective reaction to these demands lead to
innovative change in the organisation in order to to ensure their existence . The rate of changes is
accelerating rapidly , as a new knowledge idea generation and global diffusion are increasing .
Creativity and innovation have a bigger role in this change process for survival.

Today the life insurance is growing at CAGR of 35% and private player are growing at a CAGR
of 125% . There are total 23 insurance players in the market selling insurance policy. In the
developed countries life insurance contributes 8% to GDP , while in India it is less than 2% of
GDP.As you see there is huge potential in the market to cover lives through life insurance .

India’s population is more than one crore

Insured population : 6.73%

Average insurance life cover: less than Rs 10,000

In the era of globalisation ,INDIAFIRST life insurance need aggressive marketing strategy
because there is already major player exist in market like LIC ,RELIANCE , BAJAJ ALLIANZ
etc,which are very old also .INDIAFIRST is started recently in Nov 2009 joint venture of bank
of baroda & legal & general & andhra bank .It need more innovative idea for marketing.

By the help of survey I collected informaton that very few know about INDIAFIRST insurance
policy due to lack of awareness. Those who have 20-30 years old account holder in bank of
baroda they even don’t know about the insurance policy .People who above 35 years age have
done insurance of different company.95% know about the insurance basically people know more
about LIC because it is very old and trustworthy company.As we know that insurance give

• Family security
• Systematic savings
• Tax benefits
• Investment

I would like to conclude that third party product of BANK OF BARODA really needs aggressive
marketing strategy , more advertisement.more awareness among people atleast those who have
account in bank of baroda because already the big company is running in market like LIC
.Distribute more and more pamphlets etc.INDIAFIRST have very good scheme ,it has 6 plan
which really very good the term plan started in my training period .Good things about this
insurance is it is associated with brand name BANK OF BARODA which is 100 years old bank

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people have faith on that. No need of commision as LIC agent take , no need to worry about the
return of money.USP of this insurance is that it charge applicable under this policy

Year charge
1 20%

2-3 7%

4-10 3%

11 onwards 1%

Top up 2%

While other take 40%. If Bank of Baroda use good strategy for marketing of Indiafirst very
soon it will capture whole market like LIC.It is started with 12000/-

• INDIAFIRST PLAN
• EDUCATION PLAN
• SAVINGS PLAN
• FUTURE PLAN
• TERM PLAN
• LIFE PLAN
• ANNUNITY PLAN

According to their income level and interest level people choose different plan

MAIN AIM IS TO SECURE YOUR LIFE .

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 REFRENCES:

• www.Bank Of Baroda.Com
• Business Line news papaer
• www indiafirst.com
• www wekepidia .com
• Business line magazine
•

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 ANNEXURE

MOTILAL NEHRU NATIONAL INSTITUTE OF TECHNOLOGY

QUESTIONNAIRE
ON
MARKETING STRATEGY OF THIRD PARTY IN GENERAL & NON LIFE PARTICULARS
PRODUCT
NAME-_________________________________
GENDER-_______________________________
PROFFESSION-___________________________
DESIGNATION-___________________________
1.AGE-_____________________
2.Do know about the insurance ?
a) yes b) no
3.Are you aware about the insurance policy provide by the bank?
a) yes b) no
4.If yes then which life insurance or general insurance you are using ?

5.From how long you are using life insurance of that company?
a)2 years b)5years c)10 years d)above 10 years
6.what is time interval of your premium payment ?
a)monthly b)quarterly c)annually d)half yearly
7.Are you aware about the insurance of policy of bank of baroda?
a) yes b)no
8.If yes then which insurance policy you are using ?
a) Indiafirst line insurance b) NICL (general insurance)

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9.Which features do you like or dislike of that product?
_____________________________________________________________________________
_____________________________________________________________________________
_
10. Have you taken insurance for your children and family?
a) yes b)no
11. .Do you face any problem at the time of renewal of your account in bank of baroda ?
a)yes b) no

12.Why life insurance is so important for you?

13.What are the problem do you face in bank of baroda (in terms of insurance) if any please
specify?

14.Do you want to gave any suggestion to bank of baroda in respect of service provide in
insurance?
_____________________________________________________________________________
_____________________________________________________________________________
__

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