INSTITUTE OF MANAGEMENT STUDIES GHAZIABAD
A PROJECT REPORT ON TOPIC: HR PRACTICES AND VARIOUS BUSINESS
STRATEGIES OF BANK
In SUBJECT: PPSP
Submitted to: Prof. Soumen Mukherjee.
Date of Submission: 4-01-2010.
INSTITUTE OF MANAGEMENT STUDIES GHAZIABAD
A PROJECT REPORT ON TOPIC: HR PRACTICES AND VARIOUS BUSINESS
STRATEGIES OF BANK
Submitted to: Prof. Soumen Mukherjee09087)
Submitted by:Jyoti Varma (BM-
Kalap Sen(BM09089) Manisha Agarwal(BM-09100) Mayank Mohan(BM-09106) Naveen Pandey(BM-09113) Neelu Chaudhary(BM-09115) Neha Rathi(BM-09119) Nikhil Singh(BM-09124) Nitya Singh(BM-09130) Nupur Sharma(BM-09132) Pradeep Sharma(BM-09142)
Pratik Dhir(BM-09147) Prerna Paul(BM-09151) Priyanka Gulati(BM-09152) Rashmi Amita(BM-
DECLARATIONWe hereby declare that this submission is our own work & to the best of our knowledge & belief, it contains no material previously published or written by another person nor material which to a substantial extent has been accepted for the award of any other degree or diploma of the university or other institute of higher learning except where due acknowledge has been made in the text. Jyoti Varma(BM-09087) January 2010 Kalap Sen(BM-09089) Manisha(BM-09100) Mayank Mohan(BM-09106) Naveen Pandey(BM-09113) Neelu Chaudhary(BM-09115) Neha Rathi(BM-09119) Nikhil Singh(BM-09124) Nitya Singh(BM-09130) Nupur Sharma(BM-09132) Pradeep Sharma(BM-09142) Pratik Dhir(BM-09147) Prerna Paul(BM-09151) Priyanka Gulati(BM-09152) Rashmi Amita(BM-09247) 3 Date: 2nd
This is to certify that the Project entitled HR Practices of Bank of Baroda which is being submitted by PGDM (Jyoti Varma(BM-09087),Kalap Rathi(BM-09119),Nikhil Paul(BM-09151),Priyanka Sen(BMPandey(BMSingh(BMSharma(BMGulati(BM09089),Manisha(BM-09100),Mayank 09113),Neelu 124),Nitya 09142),Pratik Singh(BM-091),Nupur Dhir(BM-09147), Mohan(BM-09106),Naveen Sharma(BM-09132),Pradeep
09152),Rashmi Amita(BM-09247) student of IMS, Ghaziabad is a record of the candidate groups own work carried by them under my supervision. The matter embodied in this report is original and has not been submitted for the award of any other degree.
Project Guide: Prof. Soumen Mukherjee Date: 04-01-2010.
PREFACEGross profit of the organization is directly influenced by the marketing strategy and practices followed by the organization and it has always been one of the most important aspect of the succeeding process. However in the recent age Marketing is the core function of any organization to be put in sight of administration and always need standardized manual and digital backup. HR department has a strong correlation and harbored link with marketing and rest of the departments. HR is also responsible equally for the better output, services and productivity of any organization. Both these factors are considered immense in BOB. A century long sustainability of BOB is successful blend of the HR and marketing practices. BOB planned to expand its wing internationally within 40 years of establishment in the decade of independence, that proves BOB has been following a planned HR strategy from its day of establishment. Within 50 years of establishment BOB got one of eminent organization of that time The Hind. Dissolution shows the constructive strength of HR practices followed by the BOB. Economically effective presence of BOB in more than 25 nations is another proof of follow up of class practices in HR adopted by BOB. Aims and objective in the declaration of BOB are demonstrative elements of compactness of HR practices of BOB. This report inculcate various aspects of infrastructural complexity and strength of BOB including a specified emphasis on the HR practices followed by BOB.
We would sincerely like to thank our project guide Prof. Soumen Mukherjee, for enabling us to successfully carry out the project work through his constant guidance, for endless support and continuous involvement in the project. It was really worthwhile to receive help from Mr. S. K. Luthra, Senior Branch Manager of Bank of Baroda, who in person was always present to help us out anytime we felt his need. Without his constant support this project would not have been acknowledged as it is now. Finally, we owe a great deal of sincere thanks to the faculty members who have been of great support from time to time along with our friends, who kept encouraging us all along.
TABLE OF CONTENTS
SR.NO. 1. 2. 3. 4. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19 20 ABSTRACT QUESTION LOGO
PAGE NO. 1 2 3 4 21 27 28 52 54 68 71 73 77 80 81 82 85 86 87
INTRODUCTION HR MISSION TRAINNING PROMOTION COMPETITORS BUSINESS STRATEGIES ORGANIZATIONAL STRUCTURE LITERATURE REVIEW QUESTIONS ASKED EXERPTS CONCLUSION RECOMMENDATIONS APPENDIX LIST OF REFRENCES BIBLIOGRAPHY GLOSSARY INDEX
India is being widely recognized as one of the most exciting emerging economics in the world. Besides becoming a global hub of outsourcing, Indian firms are spreading their wings globally through mergers and acquisitions. During the first four months of 1997, Indian companies have bought 34 foreign companies for about U.S. $11 billion dollars. This impressive development has been due to a growth in inputs (capital and labor) as well as factor productivity. By the year 2020, India is expected to add about 250 million to its labor pool at the rate of about 18 million a year, which is more than the entire labor force of Germany. This so-called demographic dividend has drawn a new interest in the Human Resource concepts and practices in India. This paper traces notable evidence of economic organizations and managerial ideas from ancient Indian sources with enduring traditions and considers them in the context of contemporary challenges.
QUESTION: Given the fact that a brand name can be worth almost half of a companies value, the effective use of brands is extremely important. As Adrea Dunham of Unique Value International puts it, reliability associated with the brand becomes a repository of knowledge about the things that people are going to buy or use (U.S. news and world report, 9 October 2000.). What are some dos and donts as far as brand maintenance goes? From the marketing stand point, what should companies do to insure that their brands are effective? Keeping in mind the structure of a standard report, prepare a report based on the above mentioned questions.
INTRODUCTIONBank of Baroda (BSE: 532134) (BoB) is the third largest Public Sector bank in India, after State Bank of India and Punjab National 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 specialized 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 nationalized on 19 July 1969, by the Government of India.
HISTORY1908-1958 1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB). 1910: BOB established its first branch in Ahmadabad. 1953: BOB established a branch in Mombasa and another in Kampala. 1954: BOB opened a branch in Nairobi. 1956: BOB opened a branch in Dar-es-Salaam. 1957: BOB established a branch in London. 1959: BOB acquired Hind Bank
1960s1961: BOB merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra. BOB also opened a branch in Fiji. 1962: BOB opened a branch in Mauritius. 1963: BOB acquired Surat Banking Corporation in Surat, Gujarat. 1964: BOB acquired two banks, Umbergaon Peoples Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state. 1964: BOB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistan war. It is unclear when BOB had opened the branch. 1965: BOB opened a branch in Guyana. 1967: The Tanzanian government nationalized BOBs three branches there and transferred their operations to the Tanzanian government-owned National Banking Corporation. 1969: The Government of India nationalized 14 top banks, including BOB. BOB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest.
1970s and 1980s1972: BOB acquired Bank of Indias operations in Uganda. 1974: BOB opened a branch each in Dubai and Abu Dhabi. 1975: BOB acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand State. 1976: BOB opened a branch in Oman and another in Brussels. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a major center for diamond cutting. 1978: BOB opened branch in New York and another in the Seychelles. 1979: BOB opened a branch in Nassau, the Bahamas. 1980: BOB opened a branch in Bahrain and a representative office in Sydney, Australia. BOB, Union Bank of India and Indian Bank established IUB International Finance, a licensed deposit taker, in Hong Kong. Each of the three banks took an equal share. 1985: BOB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established Indo-Zambia Bank (Lusaka). BOB also opened an Offshore Banking Unit (OBU) in Bahrain. 1988: BOB acquired Traders Bank, which had a branch network in Delhi.
1990s1990: BOB opened an OBU in Mauritius, but closed its representative office in Sydney. 1991: BOB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&Ss branch had been established before 1970 and Union Banks after 1980. The Reserve Bank of India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and subsequent losses. 1992 BOB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange. 1993: BOB closed its OBU in Bahrain. 1996: BOB Bank entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, owning 66% of the bank's equity. 13
1997: BOB opened a branch in Durban. 1998: BOB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a response to regulatory changes following Hong Kongs reversion to the Peoples Republic of China. The now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license bank. BOB also acquired Punjab Cooperative Bank in a rescue. 1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. In Guyana, BOB incorporated its branch as a subsidiary, Bank of Baroda Guyana. BOB added a branch in Mauritius, but closed its Harrow Branch in London.
2000s2000: BOB established Bank of Baroda (Botswana). 2002: BOB acquired Benares State Bank in Benares at the Reserve Bank of Indias request. 2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE). 2003: BOB opened an OBU in Mumbai. 2004: BOB acquired the failed Gujarat Local Area Bank, and returned establishing a subsidiary in Dar-es-Salaam. BOB also opened a representative office each in Kuala Lumpur, Malaysia, and Guangdong, PRC. 2005: The Reserve Bank of India (RBI) has approved a joint venture between BOB, Bank of Maharashtra (BOM), and Oriental Bank of Commerce (OBC) to set up a bank in Malaysia. The new bank will reside in Kuala Lumpur, which has a large population of Indians. The initial capital required will be US$78 million; BOB will invest 40%, and the other two banks will invest 30% each. The JV is awaiting approval from the Malaysian Central Bank. Bank has built and commissioned its own State-of-the-Art Global Data Centre (DC) in Mumbai for running its centralized banking solution (CBS) and other applications in 1900+ branches across India and 20 other counties where the Bank is operating. BOB also opened a representative office in Thailand. 2006: BOB established an Offshore Banking Unit (OBU) in Singapore. to Tanzania by
2007: In its centenary year, BOB's total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people. 2008: BOB opened a branch in Guangzhou, China (02/08/2008). 2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand (2009/09/01)
A saga of vision and mission of enterpriseVision: It 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 hi-rise and hi-tech Baroda Corporate Centre in Mumbai is a saga of vision, enterprise, financial prudence and corporate governance. 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. 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." It is a story scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of corporate glory. It is a story that needs to be shared with all those millions of people 15
customers, stakeholders, employees & the public at large - who in ample measure, have contributed to the making of an institution. Mission: To be a top ranking National Bank of International Standards committed to augmenting stakeholders' value through concern, care and competence.
BOB LogoOur 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 energ...