SWOT ANALYSIS

OF

BANK OF BARODASHAHGANJ

BY: MANISH SUJANANIBBM V SEMDAYALBAGH EDUCATIONAL INSTITUTE

ACKNOWLEDGEMENT

I would like to express my gratitude towards Dr. Sumita Srivastava, Placement Co-ordinator, Department of Management, Faculty of Social Sciences, Dayalbagh Educational Institute for her guidance and efforts to help me secure this internship. I am indebted and highly grateful to her.I would also sincerely thank the Human Resource Department, Bank of Baroda headed by Mr. Manoj Bakshi for giving me this opportunity to learn under such an establishment and provide a medium in the form of this project to learn and explore my capabilities.In the end I would like to pay homage to each and every staff member of Bank of Baroda, Shahganj and thank them from the bottom of my heart for their co-operation and intent efforts in helping me learn and develop as a professional and work out this project.

ABSTRACT

The following document is an accumulation of the learning experience as a part of my summer internship during the month of June,2015 at Bank of Baroda, Shahganj. It was a great opportunity to learn, grow and develop under such an establishment of Bank of Baroda. The primary objective of this internship was to expose one towards the dynamics of an organizational working environment, its complexities, flows and functioning. It served as an opportunity to explore our knowledge so inculcated over four semesters of study of Business Management at Dayalbagh Educational Institute. The internship programme proves to be a platform to manifest our learning to practice and gain guidance towards our future endeavours.As a part of the internship I was directed to work towards drawing a SWOT analysis of the branch where I was stationed while witnessing day to day operations of the branch and becoming an active part in the same.The document initially covers a brief introduction about the establishment of Bank of Baroda highlighting some of the parameters which give it a distinctive edge over other organisations. Furthermore, in order to analyse the branch for its strength, weaknesses, opportunity and threats I imbibed certain basic methodologies to draw inferences. The analysis is based on my experience and learning while working as member of the staff of the branch and have reflected on reports like audit assessment reports of the bank to highlight certain essential parameters and have also conducted surveys to capture the exact feedback of employees and customers.The workforce or manpower of the branch seems to be the greatest asset behind the success and continuity of the branch. The dedication and relentless hardwork of the employees prove to be their strength abiding by the corporate strategies and objectives of the bank but the absence of essential infrastructure and inefficient use of technology and other resources holds the branch on a stagnant growth rate. Being situated close to a business centre the branch is easily accessible and has turned out to be exposed to a plethora of opportunities under the Small and Medium enterprise and retail lending products of the bank. The branch though facing a stagnant growth and being classified as a low risk platform is making adequate efforts to accelerate its profitability.

CONTENTS ACKNOWLEDGEMENT

ABSTRACT

INTRODUCTION INVESTOR RELATIONS INITIATIVES NETWORK MISSION STATEMENT LOGO HUMAN RESOURCES

RESEARCH METHODOLOGY EMPLOYEE SURVEY CUSTOMER SURVEY

SWOT ANALYSIS INTRODUCTION SWOT GRID STRENGTH WEAKNESS OPPORTUNITY THREAT

CONCLUSION

RECOMMENDATIONS

INTRODUCTIONIt has been a long and eventful journey of almost a century across 25 countries. Starting in 1908 from a small building in Baroda to its new highly specialised Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial prudence and corporate governance. Bank of Baroda has emerged as an establishment of corporate wisdom and social pride in private capital, princely patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of corporate glory.Bank of Baroda is an Indian state-owned banking and financial services company headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It is the second-largest bank in India, after State Bank of India, and offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialised subsidiaries and affiliates. In addition to its headquarters in its home state of Gujarat, it has a corporate headquarters in the Bandra Kurla Complex in Mumbai.Based on 2014 data, it is ranked 801 on Forbes Global 2000 list. Bank of Baroda has total assets in excess of 3.58trillion, a network of 5307 branches in India and abroad, and over 8000 ATMs.The bank was founded by the Maratha, Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on 20 July 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 and has been designated as a profit-making public sector undertaking (PSU).

INVESTOR RELATIONSBank of Baroda was one of the early movers in Public Sector Banks to have tapped the equity market in December 1996. Further the Bank has come out with a "Follow on Public Offer" in January 2006. The Bank has also issued equity shares to the Government of India on Preferential Basis in March 2011, March 2013, January 2014 and March 2015 and to LIC of India in March 2012, pursuant to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended. The Government of India holds 57.53% of total paid up equity of the Bank as on the date. The Bank has reduced the face value of its equity shares from Rs.10/- each to Rs.2/- each (Rupees TWO Only) by sub dividing ONE equity share in to FIVE w.e.f. 24th January 2015 (Record Date being 23rd January 2015). At present, out of the total paid up equity capital of 221,14,95,906 equity shares of Rs.2/- each fully paid up, the Public Shareholding is as large as 42.47%, which is held by Retail Investors, Employees, Banks and Financial Institutions and NRIs, Mutual Funds, Insurance Companies and Others.

INITIATIVESBank of Baroda is a pioneer in various customer centric initiatives in the Indian banking sector. Bank is amongst first in the industry to complete an all-inclusive rebranding exercise wherein various novel customer centric initiatives were undertaken along with the change of logo. The initiatives include setting up of specialized NRI Branches, Gen-Next Branches and Retail Loan Factories/ SME Loan Factories with an assembly line approach of processing loans for speedy disbursal of loans. The major ongoing initiatives of the Bank are detailed below: BUSINESS PROCESS REENGINEERING (BPR): Bank had initiated a major Business Process Reengineering to give a big boost to sales growth by enhancing customer satisfaction and by making possible alternate channel migration thus reinventing itself to challenges of the 21st century. Banks BPR project known as Project- Navnirmaan has altogether 18 activities covering both the BPR and organisational restructuring, aimed at transforming the Banks branches into modern sales & service outlets. The most important initiatives planned under this project include (1) Conversion of all metro and urban branches into modern centres known as Baroda Next branches; (2) Creation of Automated and Leaner Back Offices like City Back Office (for automated cheque processing etc), Regional Back Office (for faster account opening etc), Establishment of two Call Centres, Creation of Academy of Excellence, Introduction of Frontline Automation at select branches for customer convenience and Organisational Restructuring. PEOPLE INITIATIVES: Bank is endowed with a competent and motivated employee base which is engaged in handling the extensive business operations of the Bank across the globe. 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. People initiatives were blended with IR initiatives to create an effectively harmonious workplace, where everyone prospered. Bank launched a comprehensive leadership development program Project UDAAN during 2010-11 with the prime objective of creating leaders for the future. Such a massive and comprehensive leadership development effort is unparalleled in the Indian banking industry and first of its kind for any Indian state-owned Bank. These kinds of elaborate man management policies have made the Bank a breeding ground for business leaders. The Bank provided several leaders to the industry- men who went on to build other great institutions.

NEW TECHNOLOGY PLATFORM: Bank has made substantial progress in its end-to-end business and IT strategy project covering the Banks domestic, overseas and subsidiary operations. All Branches, Extension Counters in India, overseas business and five sponsored Regional Rural Banks are on the Core Banking Solution (CBS) platform. Bank has been providing to its customers Internet Banking, viz., Baroda Connect and other facilities such as online payment of direct and indirect taxes and certain State Government taxes, utility bills, rail tickets, online shopping, donation to temples and institutional fee payment. Bank has a wide network of ATMs across the country and has also launched mobile ATMs in select cities. Initiatives have been taken to provide corporate customers with facilities like direct salary upload, trade finance and State Tax payments etc. Bank has introduced Mobile Banking (Baroda M-connect) and prepaid gift cards.Bank has implemented the Global Treasury Solution in its key territories like UK, UAE, Bahamas, Bahrain, Hong Kong, Singapore and Belgium. Bank has taken various technological initiatives in overseas operations such as implementation of Centralized SWIFT activity through Data Centre in Mumbai, Payment Messaging System with Anti Money Laundering check, Anti Money laundering Compliance and Online List Matching solution. While Bank implemented Transaction-based Internet Banking facility for its customers in Uganda, Botswana, UAE, New Zealand, Kenya, Mauritius and Seychelles, a Viewbased e-banking facility was made available in Fiji, Oman, Tanzania and UK.

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

CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES: Bank has always upheld inclusive growth high on its agenda. Bank has established 36 Baroda Swarojgar Vikas Sansthan (Baroda R-SETI) for imparting training to unemployed youth, free of cost for gainful self-employment & entrepreneurship skill development and 52 Baroda Gramin Paramarsh Kendra and for knowledge sharing, problem solving and credit counselling for rural masses across the country, as on 31.03.2011. Bank has also established 18 Financial Literacy and Credit Counselling Centres (FLCC) in order to spread awareness among the rural masses on various financial and banking services and to speed up the process of Financial Inclusion.

THE FUTURE: Revolutionary and discontinuous changes in the operating environment are stark reminders that business success is 'impermanent'. Bank has achieved substantial progress in technology and is continuously integrating multiple platforms of technology to generate synergies. Bank continuously attempts to adapt to the dynamic economic environment while engaging in long term relationships to provide superior customer service. Banks constant endeavour to delight its customers, which is built on its strong fundamentals will make it stronger, more resilient and enable to achieve its vision of to be the Most Admired Bank.

NETWORKBANK OF BARODAs very well known as INDIAS INTERNATIONAL BANK has an adequate network of branches and offices classified as followsAREANO. OF BRANCHES

Metro991

Urban905

Semi-Urban1388

Rural1919

Total (Indian)5203

Foreign (Overseas)104

Total (Global)5307

CONTROLLING OFFICES

Zonal Offices13

Regional Offices65

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

LOGOThe banks logo is a unique representation of a universal symbol. It comprises dual B letterforms that hold the rays of the rising sun called 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. Bank of Baroda seeks to be the source that will help all their stakeholders realise their goals. To their customers, they seek to be a one-stop, reliable partner who will help them address different financial needs. To their employees, they 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.

It also recognizes that the bank is characterised by diversity. Their network of branches spans geographical and cultural boundaries and rural-urban divides. Their customers come from a wide spectrum of industries and backgrounds. 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.

Their new corporate brand identity is much more than a cosmetic change. It is a signal that they recognize and are prepared for new business paradigms in a globalised world. At the same time, they will always stay in touch with their heritage and enduring relationships on which the bank is founded. By adopting a symbol as simple and powerful as the Baroda Sun, they hope to communicate both.

HUMAN RESOURCESA quite distinctive feature of Bank of Baroda is its HUMAN RESOURCES and it has Bank of Baroda has the tradition of continuous enrichment of its human assets so that they deliver value to the business. In the ongoing Business Transformation Programme, their PEOPLE play a vital role and are one of the key business enablers. Under its plan of organizational transformation through people processes and systems, the Bank has launched various innovative employee centric initiatives and has also undertaken revamp of key systems and practices.

HUMAN RESOURCE BUSINESS MODELThe Strategic HR Business Model adopted by Bank of Baroda incorporates its HR Mission and Philosophy and is focused towards attainment of long-term organizational goals. A very strong Organizational Leadership at different levels forms the key link in the Model. These are; Strategic Leadership - Corporate level Business Leadership - Zonal & Regional level Operational Leadership - Business unit level i.e. branchThe two vital Human Resource sub-systems i.e. HR Planning & Management Sub-System & Competency Based HRD Sub-System shape the very crucial Performance Environment within the Bank which facilitates development of enabling capabilities of people. Through proper developmental inputs, Positive Attitude is created among people. Through proper Communication Medium and an Organizational Culture of sharing, openness, collaboration & confrontation, autonomy etc., people in the organization are facilitated to give their best output (performance). The Model is adequately supported by a suitable Learning Platform, which imparts proper Knowledge and enhances Learning among people (functional, behavioural etc) so that their Competence increases and their potential could be properly leveraged for greater Individual and Organizational Effectiveness. These create proper Employee Motivation, which ultimately facilitates Goal Achievement.

OBJECTIVES To initiate & institutionalise globally competitive HR practices in the Bank in our pursuit to become a Bank of international standards and to become an employer of preferred choice; To put in place relevant HRD strategies and use modern methodologies to undertake organizational renewal; identify and nurture talent, bring about marked changes in the mindset of employees at all levels so as to enhance HR Quality; To create a performance-driven culture and an exciting workplace for the employees To create a pool of entrepreneurial managers and business leaders for future; To inculcate a strong and effective sales and service culture across levels in the organization in order to generate strong stakeholder affiliation; To create a learning organization for employees intellectual growth and creativity; and to re-skill the workforce to operate in digitally enabled modern core banking environment.

RESEARCH METHODOLOGY

A SWOT analysis of a bank formally evaluates the financial institutions strengths, weaknesses, opportunities and threats. This analysis identifies these four main elements to help upper management better leverage its strengths to take advantage of future business opportunities while better understanding its operational weaknesses to combat threats to potential growth. A SWOT analysis can also address many other scenarios, such as new business initiatives, marketing budgets or even advertising campaigns. As a trainee at Bank of Baroda, Shahganj, I resorted to expose myself and learn about the four parameters of the analysis by taking part in the day to day workings of the bank. Assisting the employees in their routine work gave an insight to the working environment of the bank, drawing inferences about the internal factors contributing to the strength and weaknesses of the branch revealing the efficiencies and shortcomings of the management. The routine work involved updating records, scrutinising accounts, loans and other documents, database management, dealing with customers to attend to their grievances, communicating and marketing schemes offered by the branch. Henceforth I was revealed to the complexities and functioning of managing a bank branch being a part of the management itself.To get insights about the external factors influencing the potentials of the branch I was guided to take references from the Annual Risk Based Internal Audit report of the branch and making attempts to compare deviations and improvements over time as well as drawing inferences from the surrounding factors and strategies of competing banks in the locality and assessing the feedback of the people i.e. the employees and the customers through questionnaires samples of which have been attached herewith.

CUSTOMER SURVEYI am a student of Business Management and would request you to answer the following questions for the purpose of my training report on SWOT analysis of the Shahganj branch of Bank of Baroda. The following questionnaire is aimed at assessing your satisfaction from the services of the bank. The results and inferences are strictly for academic use.1. Name :

2. Occupation :

3. Annual Income :

4. Do you think that your bank caters all your banking needs?(a) Yes (b) No

5. For the past how many years you have account with this bank?

6. What kind of account do you maintain in this bank?(a)Current (b)Savings (c)Loan a/c (d)Fixed/Recurring deposit

7. Which of the following facilities is given more importance in your bank?(a)Loan facilities (b)O/D facilities (c)ATM facilities

8. Do they charge unnecessarily for not maintain minimum balance in your account?(a) Yes (b) No

9. Does your bank offer competitive service charges?(a) Yes (b) No

10. Do you think your bank offers competitive interest rate(a) Yes (b) No

11. Do you use the service of alternative bank(a) Yes (b) No

12. What do you feel about overall service quality of the branch?(a)Excellent (b)Very good (c)Good (d)Average (e)Poor

13. Would you recommend this bank to your friends, relatives, associates?(a) Yes (b) No

14. When do you think of your bank what comes first in your mind(a)Personalised service (b)Wide branch network (c)Customer service (d)computerised banking (e)Core banking

15. How has your experience been with the employees of the branch? (a) Pleasant (b)Satisfactory (c)Unpleasant

16. Do you have any advice for the branch to improve its services/operations?

EMPLOYEE SURVEYI am a student of Business Management and would request you to answer the following questions for the purpose of my training report on SWOT analysis of the Shahganj branch of Bank of Baroda. The following questionnaire is aimed at assessing your experience and view-point. The results and inferences are strictly for academic use.

1. Name:

2. What is your gender?(a)Male (b)Female

3. What is your age?

4. Designation/department:

5. For how long have you been working in this branch of the bank?

6. How can you describe the working environment?(a)Participative (b)Autonomy (c)Co-operative and amusing (d)Strict/Boring

7. Are you satisfied with the top management?(a)Yes (b)No

8. Are you satisfied with your job in terms of salary and growth prospects?(a)Yes (b)No

9. Are you equipped with adequate tools and authority to carry out your work effectively and efficiently?(a)Strongly agree (b)Agree (c)Strongly disagree (d)Disagree

10. How do rate the performance appraisal and other allied functions of the human resource department?(a)Very good (b)Good (c)Average (d)Poor

11. Is your works success acknowledged and appreciated?(a)Yes (b)No

12. Your Overall Satisfaction as an employee of the branch?(a)Highly Satisfied (b)Satisfied (c)Average (d)Dissatisfied (e)Highly Dissatisfied

Any suggestions to improve the efficiency and effectiveness of the branchs operations.

SWOT ANALYSISA SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective. Some authors credit SWOT to Albert Humphrey who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s.However, Humphrey himself does not claim the creation of SWOT, and the origins remain obscure. The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Strengths: characteristics of the business or project that give it an advantage over others. Weaknesses: characteristics that place the business or project at a disadvantage relative to others. Opportunities: elements that the project could exploit to its advantage. Threats: elements in the environment that could cause trouble for the business or project.Identification of SWOTs is important because they can inform later steps in planning to achieve the objective.First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated.Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage.One way of utilizing SWOT is matching and converting. Matching is used to find competitive advantage by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. An example of conversion strategy is to find new markets. If the threats or weaknesses cannot be converted, a company should try to minimize or avoid them.

BANK OF BARODA, SHAHGANJThe branch was opened on 29 December 1981, classified as a branch of a metro area under zonal office of Western Uttar Pradesh and Uttarakhand, Bareilly. It was equipped with Core Banking Solution mechanization on 2 December 2006.Currently as in June of 2015 it has Mr A.K. Gangwar as its chief manager and Mr Pratap Singh as its joint manager with a vision of financial prudence and corporate governance, abiding by the organizations ethics and policies cementing the banks legacy.

SWOT MATRIXSTRENGTHWEAKNESS

Highly co-operative workforce with effective interpersonal communication. Advanced technology like auto deposit and passbook updating machines to enhance customer experiences. Robust and reliable IT framework and CBS mechanized. Handles government business. Effective marketing of banks products. Compassionate handling of grievances. Strictly followed business policies and norms ensuring security. Widening customer base. Not authorised to deal in Foreign Exchange Business. Poor involvement of staff to achieve corporate goals. High amount of Non-performing assets. Stagnant growth and assessed to be classified as a low risk undertaking. Inefficient use of resources. Absence of essential infrastructure for smooth functioning.

OPPORTUNITYTHREATS

Branch located close/within the business centre. SME and retail lending products of the bank are well suited for the branch by virtue of its location. Competitive technological advances tapping wide customer base. Competitive banks nearby advancing technologically and strategizing competitive marketing programs. Legislations from government and regulations from the bank.

STRENGTHIn the area of strengths, a SWOT analysis should list the areas where the bank is succeeding and excelling in reaching its goals. These successes should also be internal components reflective of the banks physical and human resources. These areas are your critical success factors and they give your business its competitive advantage.Identifying these strengths can help makes sure maintaining them so that one does not lose their competitive advantage. Growing the business involves finding ways of using and building on these strengths. Effective communication is critical to any organization and can help it in many ways. In fact, communication plays a role in product development, customer relations, employee management - virtually every facet of a business' operations. Employees are a key audience because they often serve as the conduit to other audiences. If employees are informed and engaged, communications with other constituencies are likely to be strong as well. The branch employees prove to be highly co-operative and earnest in handling routine activities and grievances and work as a team to achieve corporate goals and rightfully turn out to be the greatest asset to the bank.

Technology is an integral part of banking. Right from sourcing and acquiring the customer to servicing and delighting the customer, bank depends upon technology. Technology needs to be leveraged to make the Banks routine operations cost-effective. To achieve this, the Bank has engaged the services of McKinsey & Co. to advise it on Business Process Re-engineering and Organizational Restructuring so that its branches can devote maximum time to sales and marketing functions and handle the newly acquired business in an effective manner. The newly created robust technology platform would also facilitate supervision and control and building up of rich management information system to aid the business decision making. The branch has a reliable, robust and secure IT framework. Adhering to the banks initiatives focused on customers the branch keeps up to provide state of art technology complemented with human interface. Initiatives offered by the bank are: Enterprise wide General Ledger, Risk Management, Anti-Money Laundering, Cheque Truncation, Credit Cards, Mutual Funds, On-line Trading, Data Warehousing, Customer Relationship Management, , RTGS, NEFT, Internet Payment gateway, , Cash Management, Mobile Banking, SMS delivery, Retail Depository, Phone Banking, Risk Management, Knowledge Management etc. which are well integrated and provide a seamless experience to customers of all segments and lines of business.

The branch is strict on regulations in cash management following the prescribed security norms for inward and outward cash remittance and the Clean Note Policy of RBI is effectively followed wherein branch does not accept notes in stapled conditions, notes withdrawn from circulation are segregated as non-issuable notes, mutilated/soiled notes are not held for long period. Periodical counting and verifications are carried out and cash transactions are conducted as per the stipulated timings.

Locker room is located at a place away from the surveillance area, master keys are handled by authorized officer and certified at the end of the day.

The General Ledger and Profit and Loss reports are generated regularly and kept in record. The branch is showing continuous profits but it has decreased by 19.95% in comparison to last year.

The branch officials are steadfast in service and courteous towards customers carrying forward an effective grievance redressal mechanism.

The branch carries out government business in the prescribed formats in the form of transactions relating to payment of pensions, dearness relief, public provident fund scheme(1968). Recently the branch officials have indulged in framing marketing strategies for schemes put forth by the government namely Pradhan Mantri Jan Dhan Yojana and allied insurance and loan schemes efficiently achieving the targets allocated to the branch.

The security norms and other rules and regulations are strictly followed as follows: CCTV and security alarms are functioning and an armed guard as per risk classification is present and all essential notices, boards, circulars are bilingual/trilingual in display. Ultraviolet machine is in working condition and is used in scanning notes/instruments. All inward and outward bills are scrutinised and recorded with full particulars. KYC norms observed. Keys/code books/specimen signature books are kept under dual control and remittance message is authenticated by two authorised branch officers. Instruments lodged are duly crossed and kept under lock and key. Proper records of staff members is maintained in terms of salaries, leaves and other allowances. The branch is observing the restrictions on grant of loans and advances as per Loan Policy Document.

WEAKNESS

Weaknesses are the characteristics that put your business at a disadvantage to others. Conducting a SWOT analysis can help you identify these characteristics and minimise or improve them before they become a problem. When conducting a SWOT analysis, it is important to be realistic about the weaknesses in your business so you can deal with them adequately.

Bank of Baroda is called as Indias International Bank but unfortunately the Shahganj branch is not authorised to carry out Foreign Exchange Business activities.

The branchs efforts in rectifying the irregularities mentioned in the audit reports has been satisfactory.

A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of Bond finance principal has remained past due for a specified period of time. NPA is used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make interest or principle payments for 90 days the loan is considered to be a non-performing asset. Non-performing assets are problematic for financial institutions since they depend on interest payments for income. Troublesome pressure from the economy can lead to a sharp increase in non-performing loans and often results in massive write-downs. Banks are required to classify non-performing assets further into the following three categories based on the period for which the asset has remained non-performing and the realisability of the dues:1. Sub-standard assets: a sub-standard asset is one which has been classified as NPA for a period not exceeding 12 months.2. Doubtful Assets: a doubtful asset is one which has remained NPA for a period exceeding 12 months.3. Loss assets: where loss has been identified by the bank, internal or external auditor or central bank inspectors. But the amount has not been written off, wholly or partly.According to the Annual Risk Based Internal Audit report the branch the branch has high amount of non-performing assets worth 92.40 lakhs. Cash discrepancies (excess/shortage) are noticed and cash is maintained on higher side, generally in excess of the retention limit of Rs 12 lakhs. Cash management register is not maintained/updated properly. Misplaced token register is not maintained.

The branch fails to efficiently utilise its resources for the records of pins and ATM cards which are not maintained properly and data is misplaced. Utilising technological advances can add efficiencies to such activities compensating for shortage of workforce and pacing services and customer experiences.

Immediate credit is not extended to customers as per banks guidelines for outstation cheques and interest is not paid to customers for delayed collection.

All the staff members are not made aware about the targets they are involved in achieving under special campaigns.

The branch is assessed to be a low risk undertaking.Risk management in Indian banks is a relatively newer practice, but has already shown to increase efficiency in governing of these banks as such procedures tend to increase the corporate governance of a financial institution. In times of volatility and fluctuations in the market, financial institutions need to prove their mettle by withstanding the market variations and achieve sustainability in terms of growth and well as have a stable share value. Hence, an essential component of risk management framework would be to mitigate all the risks and rewards of the products and service offered by the bank. Thus the need for an efficient risk management framework is paramount in order to factor in internal and external risks.Indian Banks have been making great advancements in terms of technology, quality, as well as stability such that they have started to expand and diversify at a rapid rate. However, such expansion brings these banks into the context of risk especially at the onset of increasing Globalization and Liberalization. In banks and other financial institutions, risk plays a major part in the earnings of a bank. The higher the risk, the higher the return, hence, it is essential to maintain a parity between risk and return. The term Risk and the types associated to it would refer to mean financial risk or uncertainty of financial loss. The Reserve Bank of India guidelines issued in Oct. 1999 has identified and categorized the majority of risk into three major categories assumed to be encountered by banks.

Financial risk Credit risk: Borrower risk, Industry risk, Portfolio or concentration risk. Market risk: Interest rate risk, Liquidity rate risk, Currency forex risk.

Non-Financial risk Operational risk Strategic risk Legal and political risk OPPORTUNITYA SWOT analysis can help you identify opportunities that your business could take advantage of to make greater profits. Opportunities are created by external factors, such as new consumer trends and changes in the market.Conducting a SWOT analysis will help you understand the internal factors (your business's strengths and weaknesses) that will influence your ability to take advantage of a new opportunity. If your business doesn't have the capability to seize an opportunity but decides to anyway, it could be damaging. Similarly, if one has the capability to seize an opportunity and does not, it could also be damaging.

The Micro, Small and Medium Enterprises in Manufacturing and service sector are defined as under in MSMED ACT, 2006.

ParticularsInvestment in Plant & Machineries in case of Manufacturing EnterprisesInvestment in Equipment in case of Service Sector Enterprises

Micro EnterprisesUp to Rs. 25/- lacsUp to Rs.10/- lacs

Small EnterprisesAbove Rs. 25/- lacs and up to Rs.500/- lacsAbove Rs.10/- lacs and upto Rs.200/- lacs

Medium EnterprisesAbove Rs.500/- lacs and up to Rs.1000/- lacsAbove Rs.200/- lacs and up to Rs.500/- lacs

Manufacturing Enterprises i.e. enterprises engaged in the manufacture or production, processing or preservations of goods with investment in Plant & Machinery as stated above.Service Enterprises i.e. Enterprises engaged in providing or rendering services and whose investment in equipment as specified above. (Original cost excluding Land & Building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006).Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the units satisfy investments criteria prescribed for Micro and Small Enterprises, as provided in MSMED Act, 2006.The bank has for internal purposes given focused attention to finance all Commercial enterprises i.e. enterprises which may be outside the purview of regulatory definition of SME but having turnover up to Rs 150.00 crores and new infrastructure and real estate projects where the project cost is up to Rs. 50/- crores by treating them as part of SME segment. The loans and advances offered by Bank of Baroda for MSME Units can be used for the basic needs of: Acquisition of factory, land and construction of building spaces. Purchase of plant and machinery including lab equipment, testing equipment, etc. Meeting working capital requirements, like raw materials, stock-in-progress, finished goods and for purchase or discounting of bills. Temporary additional assistance for meeting the urgent needs of raw material. Additional monitory assistance for any eligible purpose.The Shahganj branch being in the business centre easily accessible by potential customers has great opportunity to tap customer base under this scheme.

The branch is equipped with advanced automatic cash deposit and pass book updating machines which seek to enhance the banks positioning and provide pleasant experiences to customers building its brand equity.

THREAT

Threats are external factors that could cause problems for your business, such as changes to the market, a competitor's new advertising campaign, or new government policy. A SWOT analysis can help you identify threats and ways to counteract them, depending on your strengths and weaknesses.

A major threat to the branch is the nearby located branches of competitive banks which have undertaken massive large scale advertising and marketing activities attracting attention of substantial amount of the masses.

High amount of Non-performing assets hamper the profitability of the branch though the branch makes attempts to retrench the dues and follows adequate actions against defaulters.

Certain regulations implemented by the bank and legislations, amendments passed by the government often turn out to adversely affect the operations of the branch and make the banking sector more competitive as it is seen to have potential for growth in the economy. Likewise in the Budget of 2014-15 it was proposed that after making suitable changes to current framework of the banking sector, a structure will be put in place for continuous authorization of universal banks in the private sector in the current financial year. RBI will create a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force. Following which RBI released the Draft Guidelines for Licensing of Payments Banks and Draft Guidelines for Licensing of Small Banks and recently released the names of undertakings which applied for the same.A payments bank is a type of non-full service niche bank in India. A bank licensed as a payments bank can only receive deposits and provide remittances. It cannot carry out lending activities. This type of bank is targeted at migrant labourers, low income households, small businesses, and other unorganised sector entities. Such advancements of niche marketing would prove to be competitive for the branch for the small and payment banks would be specialised to cater to the target market only whereas the branch will have to rethink its strategies to keep up in the market.

CONCLUSIONS

As seen from the audit reports the branch can be said to satisfactorily functioning mainly because of shortage of resources absence of essential infrastructure and other contingencies. The branch has a stagnant growth trend following which it is categorised to be a low risk platform. With the established reputation of the bank and its officials i.e. the human resource of the bank being the greatest asset the branch has a plethora of opportunities to explore in the loan sector of Small and Medium enterprise as well as retail lending products of the bank. With its ongoing efforts, financial prudence and corporate governance the branch has huge prospects of growth.

RECOMMENDATIONS

With the little knowledge and valuable experience of working in such an organisation I can draw some recommendations which would be beneficial for the branch, nevertheless the officials at the branch are already working on the same. The branch should concentrate for mobilizing qualitative, Small and Medium enterprise and retail advances. Target/responsibilities should be fixed for each staff member for business development assessing the potential of the staff. Branch should plan strategy for cross selling third party products. Concentration should be laid on recovery of Non-performing assets.