Development of Public Sector Bank

DEVELOPMENT OF PUBLIC SECTOR BANK

‡‡‡‡‡

Jitendra K. Gajera (M.A., M.Phil) & Dinesh R. Chavda (M.Com, M.Phil, G-slet)

ARTICLE BY

Jitendra K. Gajera & Dinesh R. Chavda

ISBN: 978-81-925441-7 - 5

Publisor: Jitendra K. Gajera, At. - Makhiyala, Ta - Dist Junagadh Pin: 362014 Printed by: Vaibhav Printing Press – Makhiyala

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Dedication

“Supreme sacred respected father and my mother stages”

PREFACE

An efficient banking system is necessary for the overall growth of an economy and in the case of a developing economy it becomes rather much more important. Only an efficient banking system can contribute towards the formation of capital and implementation of monetary policy of a country. Banking system serves as an important channel to accomplish higher economic development by mobilizing the small savings of the people from household sector and diverting them to the productive uses in Industrial sector. Efficient banking system of a country also makes a contribution towards the societal welfare by providing financial services at an economical cost to its citizens (Valverde et al., 2003. Because of the socioeconomic implications of the banking sector the analyses of relative efficiency of banks has gained popularity among people from banking sector, policy makers, researchers and academicians and other interested parties. Other important reasons for continued interest in this area are the financial liberalization and increasing competition in the sector. Financial liberalization was first introduced in developed countries and later on it was taken by developing economies. This is the reason why initial studies on the effect of liberalization or deregulation were carried out in developed countries first. The banking system in our country comprises of public, private and foreign banks. Among these three categories, the market share of public sector banks is much higher than their private sector banks and foreign banks existing in India. Given the size, importance and contribution of public sector banks in the economic activities of the country we have deliberately chosen public sector banks only for the purpose of this book.

India’s banking sector is growing rapidly and is expected to enjoy even greater growth opportunities in the future. Several Indian banks are pursuing global strategies, as Indian companies globalize and people of Indian origin increase their investment in India. At the same time, a large number of development banks have stepped up their focus on India. Keen to participate in the Indian banking sector’s growth. While on the surface most banks in India currently have similar levels of profitability, there are dramatic differences in the underlying economics. The profitability of the wholesale banking operations of attackers, i.e. new private and foreign banks, is much higher compared to incumbents, public sector and old private banks that mainly rely on their valuable legacy retail franchises.

DEVELOPMENT OF PUBLIC SECTOR BANK

INDEX

SR. CHAPTER NAME PAGE NO NO 1 STATE BANK OF INDIA 1 2 BANK OF BARODA 39 3 BANK OF INDIA 57 4 PUNJAB NATIONAL BANK 71 5 IDBI BANK 84 6 CANERA BANK 107 7 CORPORATION BANK 122 Bibliography

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Chapter: 1 State bank of India

State Bank of India

Type Public Traded as NSE : SBIN BSE : 500112 LSE : SBID BSE SENSEX Constituent Industry Banking, Financial services Founded 1 July 1955 Headquarters Mumbai , Maharashtra , India Area served Worldwide Key people Pratip Chaudhuri (Chairman ) Products Credit cards, Consumer banking , corporate banking , finance and insurance , investment banking , mortgage loans , private banking , wealth management

Revenue US$ 36.950 billion (2012) Profit US$ 3.202 billion (2012) Total assets US$ 359.237 billion (2012) Total equity US$ 20.854 billion (2012) Owner(s) Government of India

Employees 292,215 (2012) Website www.sbi.co.in Background - State Bank of India Industry Name: Finance - Banks - Public Sector House Name: SBI Group Collaborative Country Name: N.A. Joint Sector Name: N.A. Year of Incorporation: 1955 Year of Commercial Production: N.A

Location Details - State Bank of India

Registered Address State Bank Bhavan, Corporate Centre, Madame Cama Marg, Mumbai Maharashtra 400021 Tel: 022-22883888 022-22740841 Fax: 022-22855348 Email: [email protected] Website: http://www.sbi.co.in Group: SBI Group

Registrars Datamatics Financial Services Ltd. Plot No. B-5, MIDC, Part B Cross Lane, Andheri (E) Mumbai - 400093 Maharashtra Tel: 022-66712151 - 160 Fax: 022-66712230 Email: [email protected] Website: http://www.dfssl.com

State Bank of India ( SBI ) is a multinational banking and financial services company based in India. It is a state-owned corporation with its headquarters in Mumbai, Maharashtra . As of March 2012, it had assets of US$360 billion and 14,119 branches, including 157 foreign offices in 32 countries across the globe making it the largest banking and financial services company in India.

The bank traces its ancestry to British India , through the Imperial Bank of India , to the founding in 1806 of the Bank of Calcutta , making it the oldest commercial bank in the Indian Subcontinent . Bank of Madras merged into the other two presidencies banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI has been ranked 285th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012.

SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout the country.SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.

The State Bank of India was named the 29th most reputed company in the world according to Forbes 2009 rankings and was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

♦ LOGO AND SLOGAN

The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts perfection and the small man

the common man - being the center of the bank's business.

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SLOGANS : "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US".

♦ STRUCTURE

1. Current Board of Directors As on 14 January 2013, there are fifteen members in the SBI board of directors:-

Pratip Chaudhuri (Chairman) Hemant G. Contractor (Managing Director) Diwakar Gupta (Managing Director) Krishna Kumar (Managing Director) S. Visvanathan (Managing Director) S. Venkatachalam (Director) D. Sundaram (Director) Parthasarathy Iyengar (Director) Thomas Mathew (Director) S.K. Mukherjee (Officer Employee Director) Rajiv Kumar (Director)

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Jyoti Bhushan Mohapatra (Workmen Employee Director) Deepak Amin (Director) Harichandra Bahadur Singh (Director) D. K. Mittal (Director) 2. International presence

The Israeli branch of the State Bank of India located in Ramat Gan .

As of 31 March 2012, the bank had 173 overseas offices spread over 34 countries. It has branches of the parent in Moscow , Colombo , Dhaka , Frankfurt, Hong Kong, Tehran , Johannesburg , London, Los Angeles, Male in the Maldives , Muscat , Dubai, New York, Osaka , Sydney, and Tokyo. It has offshore banking units in the Bahamas , Bahrain, and Singapore , and representative offices in Bhutan and Cape Town . It also has an ADB in Boston, USA.

SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius).

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State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong

In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches – nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in British Columbia .

In Nigeria , SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria.

In Nepal , SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In Moscow, SBI owns 60% of Commercial Bank of India , with Canara Bank owning the rest. In Indonesia , it owns 76% of PT Bank Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin . In Kenya , State Bank of India owns 76% of Giro Commercial Bank , which it acquired for US$8 million in October 2005.

3. Associate banks

Main Branch of SBI in Mumbai. SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed by the regional headquarters' name:

1. State Bank of Bikaner & Jaipur 2. State Bank of Hyderabad 3. State Bank of Mysore 4. State Bank of Patiala 5. State Bank of Travancore Earlier SBI had seven associate banks, all of which had belonged to princely states until the government nationalised them between October 1959 and May 1960. In tune with the first Five Year Plan, which prioritized the development of rural India, the government integrated these banks into State Bank of India system to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline the group's operations.

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The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore . SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.77 %.

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches. Also, following the acquisition, SBI's total assets will inch very close to the 10 trillion marks. The total assets of SBI and the State Bank of Indore stood at 9,981,190 million as of March 2009. The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26 August 2010.

State Bank of India Mumbai LHO . 4. Non-banking subsidiaries

Apart from its five associate banks, SBI also has the following non-banking subsidiaries: 1. SBI Capital Markets Ltd 2. SBI Funds Management Pvt Ltd 3. SBI Factors & Commercial Services Pvt Ltd

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4. SBI Cards & Payments Services Pvt. Ltd. (SBICPSL) 5. SBI DFHI Ltd 6. SBI Life Insurance Co. Ltd. 7. SBI General Insurance In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. Nowadays, SBI Life Insurance Co. Ltd ranks among the top and most trusted Life Insurance Companies in India and also abroad. In 2004, SBI DFHI Ltd. (DISCOUNT AND FINANCE HOUSE OF INDIA) was founded with its headquarters in MUMBAI, MAHARASHTRA. SBIDFHI Ltd. is a primary dealer that trades in fixed income securities (treasury bills, state development loans, government securities, non SLR bonds, corporate bonds) and Short Term Money Market instruments (certificates of deposit, commercial papers, inter-corporate deposits, and call and money notice deposits). It is an institution formed by RBI to support the book building process in primary auctions of Government securities and to provide necessary depth and liquidity to the secondary market in Government securities. 5. Other SBI service points

SBI has 27,000+ ATMs (25,000th ATM was inaugurated by the then Chairman of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI group (including associate banks) has about 45,000 ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012. ♦ RECENT AWARDS AND RECOGNITIONS

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a) Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010 b) The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine c) Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009 d) Best Bank 2009 by Business India e) The Most Trusted Brand 2009 by The Economic Times f) Most Preferred Bank & Most preferred Home loan provider by CNBC g) Visionaries of Financial Inclusion By FINO h) Technology Bank of the Year by IBA Banking Technology Awards i) SKOCH Award 2010 for Virtual Corporation Category for its e-payment solution j) The Brand Trust Report: 11th most trusted brand in Hindustan. ♦ SERVICES OF STATE BANK OF INDIA

1. Access to Multiple Users 2. Account Statement 3. Funds Transfer 4. Third Party Transfer 5. Demat View 6. Demand Draft 7. Utility Bill Payment 8. File Upload Facility 9. Tax Payment 10. SMS/Email Alerts 11. E - collection Facility

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12. Direct Debit Facility 13. Online Auditor 14. User Hierarchy 15. MIS Reports 16. Host to Host Integration 17. PKI Based Secur 18. SBI e-File (E-filing of IT Returns) 19. Online Shopping 20. SSC & UPSC Online Fee Collection 21. Utility Bill Payments 22. E-tickets 23. Mutual Funds Investments 24. SBI e-Tax: Online Tax Payment 25. Credit Card (Visa) Bill Pay 26. Tax Payment using ATM cum Debit Card 27. Use your 3-in-1 account to trade online a. eZ-trade@sbi with SSL b. NRIeZ-trade@sbi with SSL 28. Access to Multiple Users 29. Account Statement 30. Funds Transfer 31. Third Party Transfer 32. Demat View 33. Demand Draft 34. Utility Bill Payment 35. File Upload Facility 36. Tax Payment 37. SMS/Email Alerts 38. E - collection Facility 39. Direct Debit Facility 40. Online Auditor 41. User Hierarchy 42. MIS Reports 43. Host to Host Integration 44. PKI Based Security 45. Complaints 46. Online Shopping 47. Foreign Travel/EZ-Pay/Gift Cards

48. Mobile Banking Services 49. NRI Services 50. OnlineSBI Global 51. SBI Express Remit 52. e-DFS/e-VFS 53. SBI F.A.S.T. 54. Secure Card Transactions 55. Net Banking for Visually Challenged

♦ History of State Bank of India

The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta , later renamed the Bank of Bengal , was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters . These three banks received the exclusive right to issue paper currency till 1861 when with the Paper Currency Act the right was taken over by the Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-organized banking

XXI entity took as its name Imperial Bank of India . The Imperial Bank of India remained a joint stock company but without Government participation. Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India , which is India's central bank , acquired a controlling interest in the Imperial Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI. A process of consolidation began on 13 September 2008, when the State Bank of Saurashtra merged with SBI. SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911), which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishna ram Baldeo Bank, which had been established in 1916 in Gwalior State , under the patronage of Maharaja Madho Rao Scindia . The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala , which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of Travancore , already had an extensive network in Kerala.

1955 On 1st July State Bank of India was constituted under the State Bank of India Act 1955, for the purpose of taking over the undertaking and business of the Imperial Bank of India.

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The Imperial Bank of India was founded in 1921 under the Imperial Bank of India Act 1920. The Bank transacts general banking business of every description including, foreign exchange, merchant banking and mutual funds.

1959 On September State Bank of India (Subsidiary Bank) Act was passed. On October State Bank of Hyderabad become the first subsidiary of SBI.

1960 During this period, State Bank of Jaipur, State Bank of Bikaner, State Bank of Indore, State Bank of Travancore, State Bank of Mysore, State Bank Patiala and State Bank of Saurashtra became subsidiaries of the bank.

1962 The Bhor State Bank Ltd was Amalgamated with the Bank bring the total number of minor State associated banks so amalgamated to five. A scheme for amalgamation of the Bank of Aundh Ltd. was also approved. On 20th August, the Unit Bank Ltd. Chennai was taken over by the Bank.

1963 In October Branch in London become bankers to the Indian High Commission, thereby taking over a function till then performed by the office of RBI. Of the other business transacted by the Branch, an important aspect was medium term loans mostly to Indian shipping companies.

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1977 During the year bank introduced the Perennial Pension Plan Scheme under which if the depositors make a regular monthly payment of a fixed amount for a period of 84 to 132 months, they become eligible from the 86th and 134th months respectively for getting a monthly pension of predetermined amount forever.

In order to meet all the developmental needs of the villages including their social and cultural needs, the bank launched an integrated rural development programme, aimed at not only covering the credit need of agriculture and agricultural activities and village industries, but also housing and social activities.

1980 Bank introduced the cash Certificate Scheme under which deposit certificate are issued for a fixed period on payment of the issue price specified for the respective maturity period and the face value corresponding to the issue price plus interest compounded at quarterly intervals is paid on maturity. The certificates are issued for the face value of Rs 100, Rs 1000, Rs 10,000 and Rs 50,000 maturing after 29,65,84 and 120 months.

1982 The Non-Resident Investment Cell was set up, which had streamlined the working operations of the non-resident investment sections at important centers.

1983 SBI launched self employment scheme, for providing self-employment to educated unemployed youth. Educated

XXIV unemployed youths are encouraged to undertake self- employment ventures in industry, services and business.

1985 During the year, company set up a data bank of sick units available for taken over by healthy units. With effect from 26th August, the Bank of Cochin Ltd with 108 branches was also amalgamated with the Bank.

All shares in the Capital of the Imperial Bank of India were vested in the RBI. The SBI was registered with an Authorised capital of Rs.20 crores, and an issued and paid up capital of Rs.562, 50,000 divided into 562,500 shares of Rs.100 each.

Every person who on the 30th June, 1955, was registered as a holder of shares in the Imperial Bank of India was paid by the Reserve Bank of India. 44, 37,500 No. of shares issued at a premium of Rs 160 per share.

1986 At the end of the year 324 sick units with an outstanding of Rs 1069 crores were assisted. Of these, 107 units were considered viable and 60 from them were placed under regular nursing programme. On 1st August a new subsidiary named SBI Capital Market was functioning independently, took up leasing business and certain other new services.100, 00, 00 No. of shares issued at a prem. of Rs 160 per share.

1987 Up to the end of the year the bank had sponsored 30 Regional Rural Banks covering 66 backward and under banked

XXV districts in the country. In terms of deployment, the advances portfolio of overseas offices rose to Rs 5,767 crores. Investments in inter-bank money markets and also in prime securities amounted to Rs 2,670 crores by the end of the year.

1988 During the year bank initiated UPTECH an Industrial Technology Group to direct and guide programmes aimed at facilitating technology up gradation. Also a scheme to develop entrepreneurship among woman under the name Stree Shakti was launched. Several concessions in respect of margin and rate of interest have been built into the package. There pilot programmes were launched at Chennai, Calcutta, and Hyderabad.

On 20th September, the bank inaugurated `SBINET,' an integrated communication project aimed at improving customer service, operational efficiency and administrative convenience. The network has been designed to handle voice, fax data and manages through the trunk routes and exchanges in important centres. The bank sponsored 30 RRB's covering 66 divisions in the country. 74 branches were opened raising the branch network to 2,306.

1989 SBICAP, in their capacity as Trustee and Manager of Mutual Fund, launched two scheme viz., Mangnum Monthly Income Scheme 1989 and Magnum Tax Service Scheme 1990. During the same period SBI in association with Morgan Stanley Asset Management Inc. of USA, launched the India Magnum Fund.

1990

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New products launched during the year included a Regular Income Scheme, offering an assured return in excess of 12% and the first Pure Growth Scheme aimed at capital appreciation. A Second offshore fund of US $ 12 million called Asian Convertible and Indian Fund was launched in association with Asian Development Bank, Manila.

During Kharif 1990, the bank introduced an agricultural credit card, known as SBI Green Card to give greater liquidity and flexibility to farmers in procuring agricultural inputs. The scheme was introduced on a pilot basis in 125 intensive centre branches. As at on 31st March, SBIMF had over 3, 40,000 Indian investors and about Rs 475 crores by way of investible domestic funds. 50, 00,000 No. of shares issued at a prem. of Rs 160 per share.

1991 During February the bank set up a new subsidiary called the SBI Factors and Commercial Serviced Pvt. Ltd. for rendering factoring services to the industrial and commercial units in Western India.

1992 The bank sponsored 30 RRBs with a network of 3189 offices covering 102 backward and under banked districts of the country. A sum of Rs 15.25 crores was contributed towards the share capital of the RRBs. During the period bank introduced `Stock invest' scheme. Also introduced a `Gyan Jyoti' that replaced earlier education loan schemes and offers substantial augmented assistance to students pursuing higher studies. Moreover dedicated NRI branches equipped with State-of-the- art technology was set up at Mumbai and Delhi to cater to the special needs of NRI residents.

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1993 During the year as a part of its overseas expansion the bank established representative office in Tashkent. During December, the bank issued 124,000,000 equity shares of Rs.10 each for cash at a premium of 90 per share of which 245,00,000 shares each were reserved for allotment on a preferential basis to Indian Financial Institutions and Indian Mutual Funds. Balance issued to the public.

Simultaneously it came out with another issue of 50,00,000 12% unsecured redeemable floating rate bonds in the nature of promissory notes of the face value of 1000 each. Oversubscription upon a further amount of Rs 500 crores (in all Rs 1000 crores) was to be allowed. The face value of each bond would be redeemed at par at the expiry of 10 years from the date of allotment. In the event that the State Bank decides to exercise its option to call up the bonds they would be redeemed at the rate of 5% at the end of 5th year, at 3% at the end of 7th year and 1% at the end of 9th year. It was proposed to issue 1200, 00,000 right equity shares of Rs.10 each at a premium of Rs.50 per share in the proportion of 3:5.

Another 120, 00,000 equity shares of Rs.10 each were to be issued at a premium of Rs.50 per share to employees on an equitable basis. 250 sick units with the bank were referred to the BIFR including 31 public sector units. Approved rehabilitation packages being implemented in 85 units and 41 have been recommended to be wound up. The bank continued to be appointed as the operating agency and rehabilitation packages were submitted to BIFR in 48 cases. Equity shares subdivided. 1418, 50,000 No. of Equity Shares of Rs. 10 each issued at a prem. of Rs 90 per share to the public. Another 1319,78,726 shares of Rs 10 each offered at a prem. of Rs 90 per share on Rights basis and to employees. 1994

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358 sick units with the bank were referred to the BIFR including 55 public sector units. Approved rehabilitation packages implemented in87 units. 1, 80,463 No. of Shares kept in abeyance were issued.

1995 351 sick units with the bank were referred to the BIFR including 66 public sector units. Approved rehabilitation packages implemented in 112 units. 683 No. of shares kept in abeyance were allotted.

1996 On 3rd October the Bank Issued 261, 45,000 GDRs amounting to 5, 22, 90,000 equity shares. 1 GDR is issued to 2 equity shares. The issue price of GDR was US $ 14.15 per GDR.

1997 1. Shares issued to employees of the bank bearing distinctive numbers 46, 26, 00,001 to 47, 46, 00,000 will not be good delivery. The rights issue was for 12 crore equity shares at a premium of Rs.50 aggregating Rs.720 crore in addition to a further issue of 1.2 crore equity shares of Rs.10 at a premium of Rs.50 aggregating Rs.72 crore for State Bank employees. The price of the rights had been Rs.60 per share. After SBI Capital Markets, Manila-based Asian Development bank will pick up 15 per cent equity stake in the new stock broking subsidiary of State Bank of India to be made operational by mid-1997. The balance 85 per cent will be subscribed to by SBI. 2. SBI Securities Ltd the 100 per cent stock broking subsidiary of SBI has recently received the much-awaited letter of incorporation from the Registrar of Companies. Following this, both SBI and ADB will pick up their

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respective shares in the new stock broking firm. SSL will have an equity base of Rs.50 crore.

3. The State Bank of India has tied up with GE Capital to float a venture in Mumbai. State Bank signed the memorandum of understanding with GE Caps in March. State Bank will tie up with either VISA or MasterCard or even both for the franchise network. GE Caps through this joint venture will be imparting technology, credit card expertise and payment card mechanism.

4. The Reserve bank of India has directed the SBI to set up a 0 million stand-by facility for the Indian oil corporation. State Bank of India (SBI) signed an agreement with the National.

5. Securities Depository Ltd (NSDL) for dematerialisation of its shares. Besides, SBI has also become an equity stake holder in NSDL to the extent of 4.76%.SBI Commercial and International Bank, has become the country's first public sector bank to introduce optical disk (OD) facilities for data storage.

1998 State Bank of India kick-start its credit card business on July 1 by floating two joint ventures with GE Capital. The largest financial intermediary in the country will sign the joint venture agreement with GE Caps in the last week of January.

The State Bank of India on Jan 27 kicked off its foray into the payment cards business with a joint venture agreement with US-based financial services giant, General Electric Capital Corporation (GE Capital). State Bank of India (SBI) on June 24 signed an exclusive agreement with the world's largest payment system - Visa International – for payment cards in India. The

XXX agreement was signed in Mumbai between the SBI managing director, Mr O P Sethia, and the general manager and executive vice president (South East Asia) of Visa, Mr James G Murray.

1999 State Bank of India (SBI) has bagged the mandate to syndicate the $ 120 million loan for the National Thermal Power Corporation (NTPC). The State Bank of India (SBI) proposes to take up the life insurance and general insurance business once the sector is opened up. State Bank of India has tied up with its associate banks to market the SBI Card. The SBI has tied up with State Bank of Patiala in Chandigarh and State Bank of Mysore in Bangalore to help market its credit card.

SBI proposes to introduce a value-added service for cardholders whereby the credit card can also be used as an ATM card. The State Bank of India will tie up with international investment banker Credit Suisse First Boston and three domestic public sector banks to form a gold assaying venture.

The State Bank of India (SBI) has decided to take over SBI Home Finance (SBIHF), with its assets and liabilities. Having the largest stake, SBI has been weighing various options for bailing out the joint venture company which has slipped into huge losses. The State Bank of India (SBI) has signed up with Central Depository Services (I) (CDSIL) for the dematerialisation of its shares. SBI shares have already been admitted as security with National Securities Depository (NSDL). Besides, SBI also has a stake (Rs 10 cr) in the equity of CSDL.

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According to an agreement entered into with the development bank, State Bank of India (SBI) was to reduce its stake in its investment banking subsidiary to below 50 per cent by March 31.The State Bank of India (SBI) has entered into an agreement with Moody's Investor Service and Icra, under which SBI will pick up Moody’s 11 per cent stake in Icra in case the global rating firm wants to get out of its investment in India. State Bank of India (SBI) has taken the lead in `convenience banking' by becoming the first public sector bank to offer its `savings bank' account holders the benefits of fixed deposits (higher interest rates) and current accounts (overdraft facility).

2000 1) The Bank has proposed to come out with an issue under private placement of unsecured, non-convertible, subordinated bonds in the nature of promissory notes of Rs 1 lakh each aggregating Rs 600 crores with an option to retain oversubscription of up to Rs 40 crores.

2) The Bank launched the Metal (Gold) Loan Scheme in Coimbatore. This is the third scheme to be introduced by SBI. SBI is also forming a subsidiary - SBI Gold and Precious Metals Pvt. Ltd. with 50 per cent equity participation.

3) SBI board cleared the setting up of a separate subsidiary of information technology. KC Raut has recently taken charge as general manager at State Bank of India, Chennai.

4) The Bank has become the first public sector bank to offer fixed-rate home loans.

5) The State Bank of India has tied up with State Bank of Mysore to launch co-branded credit cards as part its strategy

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to collaborate with associate banks to expand its cardholder base.

6) State Bank of India and the Exim Bank of the US have signed a memorandum of understanding, involving 0 million, to support the small and medium-sized Indian companies to purchase US goods and services.

7) State Bank of India Mutual Fund has launched the Magnum Gilt Fund, dedicated to investing in government securities.

2001

1. The Bank has introduced Voluntary Retirement Scheme for eligible employees, open from the 15th January 2001 to the 31st January 2001.

2. The Bank will install 10 more Automated Teller Machines in the north-eastern region in addition to the one already commissioned at Guwahati.

3. SBI Cards has set up a special insurance cell in Ahmadabad for facilitating the claims of SBI cardholders affected by the tragic earthquake in Gujarat. 4. SBI has assigned the Delhi-based HCL Com Net to provide it ATM teller inter-connectivity which could involve investments running into several hundred crores.

5. SBI chief general manager Madhav M Mehta, who is currently the operational head in Gujarat, has been transferred to its corporate office in Mumbai as chief general manager (CGM). July 3- Announces the launch of the SBI International card and the SBI Global Card for global travellers in India. SBI International cards and SBI

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Gold Cards would be accepted at over 20 million Visa outlets worldwide and one lakh outlets in India.

6. State Bank of India has embarked upon an ambitious Rs 800-crore technology up gradation programme. The bank has appointed KPMG, a consultant in computer technology, to provide inter connectivity networking to the computerised branches and also to the ATMs across the country enabling its customers to transact any kind of business from anywhere.

7. State Bank of India was presented the award for JD Power Asia Pacific’s 2001 India Sales Satisfaction Index (SSI) and Consumer Financing Satisfaction (CFS).

8. State Bank of India has added three more ATMs to its network. The new ATMs were installed at SBI's Andheri (west), Goregaon (east), and Borivili (east) branches on September 22.

9. State Bank of India has slashed the interest rate on home loans by 0.5 per cent to 12 per cent, effective from September 15. IN A significant move, the State Bank of India has decided to distance itself from its subsidiaries - SBI Capital Markets, SBI Gilts, SBI AMC and State Bank of Credit and Commerce International. They will have the autonomy, independent chairmen and external executives at the senior management level at market-related salaries. At present, the SBI chairman is the ex-officio chairperson of all the subsidiaries, including the associate banks.

10. The new scheme will be aimed only at the award staff, a category that was included with officers in the January 2001 voluntary retirement scheme.SBI Cards on July 3, announced the launch of the SBI International card and the SBI Global Card for global travellers in India.

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11. The Bank has crossed another milestone by making a successful foray into insurance. SBI is the only Bank to have been permitted a 74% stake in the insurance business. The Bank's insurance subsidiary, SBI Life Insurance Company, a joint venture with the Bank holding 74% and Cardiff S.A., the Joint venture partner, the balance 26%, was incorporated to undertake life insurance and pension business. Cardiff S.A. is a wholly-owned subsidiary of BNP-Paribas, which is the largest bank in France and one of the top ten banks in the world. Cardiff S.A. is the largest bank assurance company in France.

12. The bank's efforts to establish a world -class credit information bureau in India culminated in the successful setting up of the Credit Information Bureau (India) Ltd, a joint venture of the Bank with HDFC Ltd., Dun and Bradstreet Information Services India Pvt. Ltd. And Trans Union International Inc.

2002 1. In order to reduce risk and develop a transparent and active debt market in general and government securities market in particular, the Clearing Corporation of India Ltd. has been set up in Mumbai with the Bank as the chief promoter.

2. State Bank of India has informed BSE that the Bank has decided to close SBI Securities Ltd (SBISL), a subsidiary of the Bank, following a Directive in this regard from the RBI.

3. State Bank of India has informed that Shri Prithvi Raj Khanna and Shri Kumar Bery have been duly elected as Directors under Section 19(c) of SBI Act at the General

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Meeting of the -State Bank of India has informed that it has appointed Mr Ananta Chandra Kalita, as a Director on the Central Board of the Bank from amongst the employees of the Bank, who are workmen, for a period not exceeding six months commencing from October 03, 2002 or until his successor is appointed or till he ceases to be workmen employee of State Bank of India, or until further orders, whichever event occurs earlier. Shareholders of the bank held on September 09, 2002.

4. State Bank of India has informed BSE that Shri Janki Ballabh, Chairman has relinquished office of Chairman at the close of business hours on his attaining superannuation on October 31, 2002.

5. State Bank of India has informed that Smt Vineeta Rai, Secretary (Banking & Insurance), Ministry of Finance and Company Affairs, Department of Economic Affairs (Banking Division), New Delhi has been nominated as Director of the Board with effect from October 30, 2002. 6. State Bank of India has informed that the Central Government, after consultation with the Reserve Bank of India, appointed Shri A K Purwar, Deputy Managing Director, State Bank as Chairman, State Bank of India from the date of his taking charge of the post and up to May.

7. 2003 State Bank of India (SBI) and Maruti Udyog Ltd have announced a joint initiative aimed at making car finance affordable to middle and lower middle class customers. Customers will now have transparent car finance involving no hidden charges and pre-closure penalties, and also get the dealers' margins, Mr S.K. Bhattacharya, Chief General Manager, and SBI, told newspersons. It will help both the bank and Maruti to aggressively tap the Andhra Pradesh market, he said. SBI offers finance facility even for lifetime tax, insurance and accessories of the vehicle.

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8. State Bank of India has informed that the Bank has appointed Shri Ananta Chandra Kalita, Head Assistant, State Bank of India as a Director on the Central Board of the Bank amongst the employees of the Bank, who are workmen for a period of 3 years commencing from July 15, 2003 or until he ceases to be a workmen employee of the Bank or until further orders, whichever is earlier provided that he shall not hold the office continuously for a period exceeding six year. SBI group's total profit identified at Rs 3,354 cr in '02.

9. SBI Cards and Payment Services Private Ltd, the credit card subsidiary of the State Bank of India, introduces two new schemes recently- SBI Advantage Card to the bank's fixed deposit customers and SBI International Card for its home loan borrowers.

10. Launches a new credit appraisal system targeting the small and medium enterprises (SME) for loans up to Rs 25 lakh SBI selects TCS to execute trade finance solution.

11. SBI and ICICI Bank among the top 100 banks in Asia in 2001 as per the study by Asian Banker Journal Introduces SBI Cash Plus, its Maestro Debit Card that allows customers to access their deposit accounts from ATMs and merchant establishments.

2003 1. Increases its equity stake in Discount and Finance House of India Ltd (DFHIL) to 51% Increases its Equity Stake in DFHIL to 55.30%.

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2. Receives permission from Insurance Regulatory and Development Authority (IRDA) to sell healthcare products to individuals

3. Starts new 'Plus schemes' loans such as Justice Plus intended for the judges and court employees, Police Plus for the police personnel, Teacher Plus for the teaching community and Doctor Plus for the medical practitioners.

4. Plans a new scheme to attract Resurgent India Bonds (RIB)

5. State Bank of India along with ANZ Investment Bank have consummated 5 year syndicate loan facility of 0 million to Indian Petrochemicals Corporation (IPCL)

6. Inks pact with Mahindra & Mahindra (M&M) for co- branded tractor scheme SBI-Mahindra Tractor Plus. 7. Unveils new retail bank loan product Credit Khazana, which targets the bank's housing loan account holders Unveils Credit Khazana, retail bank loan product, to target the bank's housing loan account holders

8. 2003-Bank has entered into MOU with both ICICI Bank and HDFC Bank for sharing Bank's ATM Network with them on bilateral terms.

9. The State Bank of India has announced a special package to BSNL employees by allowing concessional interest rates for different types of loans to be availed by the BSNL staff.

2004 1) State Bank of India has informed that Reserve Bank of India has nominated Shri A V Sardesai, Executive Director,

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Reserve Bank of India on the Central Board of State Bank of India vice Dr. Rakesh Mohan.

2) Bahrain Monetary Agency (BMA) grants in-principle licence to State Bank of India (SBI)

3) State Bank of India has entered into an alliance with HDFC Bank for sharing ATM networks to be operationalised from February 3, this year.

4) State Bank of India appointed six new Deputy Managing Directors on February 11, 2004. The new DMDs are: Mr T.S. Bhattacharya, CGM, Product Development and Marketing, Mr M.M.Lateef, Managing Director, SBI Gilts, Mr Yogesh Agarwal, CGM, Chandigarh, Mr Krishnamurthy, CGM, Madras LHO and Mr R.Ramanathan, CGM, Technology and Mr Vijay Anand, CGM, Corporate Account group. These top level appointments follow the appointment of the new Managing Director for the bank, Mr Chandan Bhattacharya, in December.

5) SBI enters into ATM sharing agreements with UTI Bank & HDFC Bank.

6) Signs a Memorandum of Understanding (MoU) under which the bank will provide term loans to farmers for purchasing capital inputs from Jain Irrigation Systems Ltd (JISL).

7) Joins hands with VST Tillers to launch SBI-VST Shakti, a new loan scheme for farm mechanisation programme.

8) Unveils Vishwa Yatra foreign travel card, a prepaid card which offers the traveller a convenient and secure way to carry cash.

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9) The government has chosen State Bank of India (SBI) for channelizing government credit to other countries which runs into billions of dollar.

10) State Bank of India, Bangalore Circle, has announced its tie-up with New India Assurance Company Ltd (NIAC), for distribution of NIAC's general insurance products in Karnataka

11) State Bank of India has signed a Memorandum of Understanding (MOU) with the Societe Generale Asset Management of France (SGAM) for inducting Societe Generale Asset Management as a stake holding partner for SBI's mutual fund arm, SBI Fund Management Private Ltd (SBIFMPL).

12) State Bank of India, (SBI) with a view to expand the ambit of its educational loan schemes, has unveiled a unique educational loan scheme, christened Nursing Plus, for the nursing students of the country.

13) SBI Card has launched 'Instant Card' offering customers in need of instant credit opportunity. With this, the customers will get an opportunity to get ready to use credit card within a few hours of filing in their application form.

2005 1) State Bank of India and 8 associate banks have entered into an agreement with Bharat Petroleum Corporation Ltd (BPCL) for enhancing card usage at fuel stations

2) SBI signed a memorandum of understanding with Small Industries Development Bank of India for co-financing small and medium enterprises in Andhra Pradesh, Tamil

Nadu, Uttar Pradesh, Jammu & Kashmir, Jharkhand, Delhi and Bihar

3) State Bank of India and Crisis has signed a memorandum of understanding under which latter will assign ratings to small-scale industries that are borrowers of SBI.

2007 1) State Bank of India (SBI) has appointed Shri. S K Bhattacharya as Managing Director on the Board of the Bank with effect from October 08, 2007 to the October 31, 2010, as per the Notification dated October 08, 2007, by the Government of India.

2) The State Bank of India (SBI) has become the first foreign bank to set up a branch in the Israel's diamond exchange. Besides diamonds, they also see huge potential in telecommunications, hi-tech, chemicals, textiles, agriculture and water management, food processing, pharma and health care.

2008 1) State Bank of India (SBI) has informed that the Government of India in pursuance of clause (e) of Section 19 of the State Bank of India Act, 1955 (23 of 1955) has nominated Shri. Arun Raman than, Secretary, Ministry of Finance, Department of Financial Services, New Delhi as a Director on the Central Board of State Bank of India with effect from January 18, 2008, vice Shri. Vinod Rai.

2) State Bank of India (SBI) has informed that the Central Government, in consultation with the Reserve Bank of India and in pursuance of clause (d) of Section 19 of the State Bank of India Act, 1955 (23 of 1955), has nominated Dr. (Mrs.) Vasantha Bharucha as a part-time

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3) State Bank of India (SBI) has informed that the Central Government, in consultation with the Reserve Bank of India and in pursuance of clause (d) of Section 19 of the State Bank of India Act, 1955 (23 of 1955), has nominated Dr. Rajiv Kumar as part-time non-official director on the Central Board of Directors of State Bank of India for a period of three years with effect from September 08, 2008 or until further orders, whichever is earlier.

4) State Bank of India (SBI) has signed a Joint Venture Agreement with Insurance Australia Group to form a Joint Venture Company which will be engaged in General Insurance business in India.

5) State Bank of India has rolled out a micro insurance scheme ‘Grameen Shakti', for its Self Help Group (SHG) members. The product was launched on Nov 26 at the Tamil Nadu Agricultural University. The bank is hopeful to cover at least five lakh SHG members by December 31.

2009 1. State Bank of India yesterday slashed its benchmark lending rate by half a percentage point to 11.75 per cent. The Benchmark Prime Lending Rate (BPLR) was revised down by 50 basis points with effect from June 29, SBI informed the Bombay Stock Exchange. This move would benefit home, car and corporate loan customers.

2. State Bank of India on June 30 launched two new home loan products called as SBI Easy Home Loan and SBI Advantage Home Loan, with zero processing fees for both waived off till September 30. While SBI Easy Home is for loans amount up to Rs 30-lakh while the SBI Advantage Home is for loans above Rs 30-lakh, a press release issued here said.

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3. State Bank of India entered into an agreement with the government of Gujarat to create a fund of Rs 5,000 crore for investing in equity of infrastructure projects.

2010 1. State Bank of India, with a debit card base of over 70 million, comprising SBI Cash Plus, SBI Gold Debit Card and SBI Yuva Card, has added chip and PIN-based Platinum Debit Card to its bouquet on March 26.

2. Mr Arun Kumar Agarwal has taken over charge as General Manager at State Bank of India, Kerala Circle. Until now, he has been General Manager at the Luck now Circle of the bank. Mr Agarwal is Certified Associate of Indian Institute of Bankers and joined State Bank of India as a Probationary Officer in 1977. An expert in credit and foreign exchange, he has held several assignments ranging from Branch Manager to Regional Manager in the Patna and Delhi circles. He also served in the bank's foreign department at Kolkata handling investment of the FCNB portfolio, derivatives and correspondent relations. He has headed the Pune Module of the bank and has also served as the Deputy General Manager and Business Head for Network-1 of the Mumbai Circle.

3. State Bank of India (SBI) has signed a pact with Unique Identification Authority of India (UIDAI) to work as a registrar for the UID registration of residents. It has become the first bank to take up registration work for the UIDAI project. As a registrar, SBI will capture through empanelled enrolment agencies, the biometric characters such as finger prints, iris and so on and send the information to UIDAI.

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4. State Bank of India (SBI) has come up with an exclusive branch in Hyderabad, for their ultra high net worth individual (HNIs) which is by far is first of its kind in the country.

5. SBI - Joint Venture agreement with State General Reserve Fund (SGRF), Sultanate of Oman

6. State Bank of India (SBI) has signed an agreement with Unique Identification Authority of India (UIDAI) in order to work as a registrar for the UID registration of residents.

2011 1. State Bank of India, with a debit card base of over 70 million, comprising SBI Cash Plus, SBI Gold Debit Card and SBI Yuva Card, has added chip and PIN-based Platinum Debit Card to its bouquet on March 26.

2. Witnessed a joint venture between the nation's largest lender, State Bank of India and the telecom lead, Bharti Airtel with an aim to provide the banking services amongst the unbanked population of the country.

3. Experian Credit Information Company of India Private Limited, the first CICRA licensed credit bureau in India on September 23, 2011 said it has signed a membership agreement with State Bank of India (SBI), the largest consumer lender in India to contribute data to Experian’s credit bureau and enhance the effectiveness of company's range of products and services.

2012

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a) State Bank of India signed a Preliminary Non-Binding Memorandum of Understanding with Russian Direct Investment Fund (RDIF), to facilitate advancing bilateral economic cooperation and trade between Russia and India aimed at exploring investment opportunities in both the countries.

b) India's largest public sector lender, State Bank of India (SBI) has entered into an agreement with StarAgri Warehousing Ltd (StarAgri), India's leading agri-services & solutions provider, for Warehousing Receipt Financing and Collateral Management Services.

c) SBI, ICICI Bank leading m-banking revolution in India. With the advent of smart phones and 3G services, the Mobile Banking (m-Banking) services have been fast catching up with Indian customers for conducting balance inquiries, account transactions, utility payments, and other banking activities using a mobile handset

d) India's largest lender State Bank of India (SBI) has been planning to cut the processing and conversion fee for home loans to leverage the approaching festival season when Indians usually spur buying as Businesses offer healthy discounts.

2013 India's leading Public Sector lender the State Bank of India (SBI) is stepping up efforts to expand its presence in the world's second biggest economy with the lender set to launch its second branch in China.

• Source : Dion Global Solutions Limited

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CHAPTER: 2

Bank of Baroda

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Bank of Baroda

Type Public

Traded as BSE : 532134

Industry Banking, Financial services

Founded 1908

Founder(s) Maharaja Sayajirao Gaekwad

Headquarters Vadodara , India Bank of Baroda Area served Worldwide Registe Key people S S Mundra red (Chairman & MD ) Addres s Baroda House, Mandvi, Vadodra Products Credit cards , consumer banking , Gujarat corporate banking , finance and 390006 insurance , investment banking , Tel: mortgage loans , private banking , Fax: private equity , wealth management 0265- Email: i Revenue 345.88 billion ( US$ 6.3 billion) nvestors (2012) ervices @banko Net income 52.48 billion ( US$ 955.14 fbaroda. million) (2012) com Websit Total assets 4.574 trillion ( US$ 83.25 billion) e: (2012)

Website www.bankofbaroda.comXLVII

http://www.bankofbaroda.com Group: Public Sector

Registrars Karvy Computershare Private Ltd. Plot No.17- 24, Vittalrao Nagar, Madhapur Hyderabad - 500081 Andhra Pradesh Tel: 040-23420815, 23420816, 23420817, 23420818 Fax: 040-23420814 Email: [email protected] Website: http://www.karvy.com

♦ Bank Background - Bank Of Baroda

Industry Name: Finance - Banks - Public Sector House Name: Public Sector Collaborative Country Name: N.A. Joint Sector Name: N.A. Year of Incorporation: N.A. Year of Commercial Production: N.A. LISTING INFORMATION

Face Value of Equity Shares: 10 Market Lot of Equity Shares : 1 BSE Code: 532149 NSE Code: BANKINDIA BSE Group: A

XLVIII

♦ SERVICES OF BANK OF BARODA

A. CUSTOMER SERVICE

1. Customer Care

a. Contact Us

b. Guidance Note

c. Inquiry

d. Product Enquiry

e. Redressal of Complaints

2. Banker's Fair Practices Code

3. Banking Codes & Standards Board of India

4. Banking Ombudsman Scheme 2006

5. Citizen's Charter

6. Fair Practices Code 7. FAQs

8. Model Policy Documents

9. Right to Information Act

10. Journal on Banking, Insurance and Pension issued by Department of Financial Services, Ministry of Finance

B. NRI Services

1. Deposit Products 2. Simple steps to Open NRI A/c

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3. Loan Products 4. How to Send Money to India 5. Facilities to Returning Indians 6. Investment opportunities & Other value added products 7. Important FEMA provisions on investment 8. Taxation 9. Frequently asked questions 10. Enquiry

C. Personal

1. Deposits

a. Fixed b. Current c. Savings

2. Gen-Next

a. Gen-Next Junior b. Gen-Next Lifestyle c. Gen-Next Power d. Gen-Next Suvidha

3. Loans a. Home Loan b. Home Improvement Loan c. Loan Against Future Rent Receivables d. Advance Against Securities e. Baroda Career Development Loan f. Two Wheeler Loan g. Traders Loan

L h. Baroda Ashray (Reverse Mortgage Loan) i. Baroda Advance Against Gold Ornaments /Jewellries (At Urban & Metro Centres) j. Baroda Additional Assured Advance (AAA) (Resident / NRIs /PIOs) k. Mortgage Loan l. Education Loan m. Auto Loan n. Loan to Doctors o. Personal Loan p. Loan for financing Individuals for subscription to Public Issues /IPO

4. Credit Cards

5. Debit Cards

6. Services

7. Lockers

Bank of Baroda ( BoB ) ( Hindi : ) is the highest profit-making public sector undertaking (PSU) bank in India and the second largest PSU bank in terms of number of total business in India. Based in Vadodra , India, it is the country's first largest public sector lender in terms of annual profit. BoB is ranked 715 on Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores , or Rs. 3,583 billion, a network of 4007 branches (out of which 3914 branches are in India) and offices, and over 2000 ATMs. It plans to open 400 new branches in the coming year. It offers a wide range of banking products and financial services to corporate and retail customers through its delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, credit cards and asset management. Its total global business was Rs. 7,003.30 billion as of 30 Sep

2012. Its head quarter is in Vadodra and corporate headquarter is in Bandra Kurla Complex Mumbai .

The Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III , one of the knights of the Maratha Kingdom , founded the bank on 20 July 1908 in the Princely State of Baroda , in Gujarat . The bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969, by the Government of India . S Mundhra was appointed as the bank's chairman and MD in January 2013. He was an executive director in Union Bank of India prior to the appointment.

♦ History of Bank of Baroda

1908-1959

Maratha Maharaja Sayajirao Gaekwad III , the founder of Bank of Baroda

In 1908, Maharaja Sayajirao Gaekwad III , one of the knights of the Maratha Kingdom , set up the Bank of Baroda (BoB). Two years later, BoB established its first branch in

LII

Ahmadabad . The bank grew domestically, until after World War II. Then in 1953 it crossed the Indian Ocean to serve the communities of Indians in Kenya and Indians in Uganda by establishing a branch each in Mombasa and Kampala . The next year it opened a second branch in Kenya, in Nairobi , and in 1956 it opened a branch in Dar-es-Salaam . Then in 1957 BoB took a giant step abroad by establishing a branch in London . London was the center of the British Commonwealth and the most important international banking centre. 1959 saw BoB complete its first domestic acquisition when it took over Hind Bank.

1960 In 1961, BoB merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra . BoB also opened a branch in Fiji . The next year it opened a branch in Mauritius . Bank Of Baroda In 1963, BoB acquired Surat Banking Corporation in Surat , Gujarat . The next year BoB acquired two banks Umbergaon People’s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.

In 1965, BoB opened a branch in Guyana . That same year BoB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistani War of 1965 . It is unclear when BoB had opened the branch. In 1967 it suffered a second loss of branches when the Tanzanian government nationalized BoB’s three branches there ( Dar es Salaam , Mwanga , and Moshi ), and transferred their operations to the Tanzanian government- owned National Banking Corporation .

In 1969 the Indian government nationalized 14 top banks, including BoB. BoB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest.

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The Bank was brought into existence by an Ordinance issue on 19th July, by the Central Government. The Bank is a Government of India Undertaking and carries on all types of banking business including foreign exchange. The Ordinance was replaced by the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1969.

Besides managing public issues and giving underwriting support, the Bank established a `Non-resident Portfolio Management Consultancy Cell'. Due to closure of 2 branches in U.K. and 1 branch in UAE, non-operative branch in Bangladesh was not taken into account.

1970 1. Income-Tax consultancy services were set-up in September to assist its constituents in the filing of income returns.

2. Bank of Baroda (U.K.) Nominees Ltd., London is a subsidiary of the Bank. Bob Fiscal Services Ltd., is also a subsidiary of the Bank which handles functions such as merchant banking, equipment leasing, investment banking, inter-corporate deposit, etc. Bank of Baroda (Kenya) Ltd., Kenya is subsidiary of the Bank.

1993 1. The bank had established a new department to act as custodian of local shares issued by Indian companies who came out with Euro Issues (GDRs/ADRs) to raise funds from abroad. With this in view, the bank entered into an agreement with Bank of New York, who act as Depository for issue of GDRs by companies.

2. The bank was associated as lead manager/co-manager in respect of 142 issues involving a sum of Rs 3411 crores.

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The bank was activity considering setting up of a separate subsidiary to undertake all types of merchant banking activities. 1996

1. The Bank devised new products, two new deposit schemes BOB SUVIDHA, BOB CAPITAL GAINS EXEMPTION DEPOSIT' was launched to suit the savings requirements of individuals, HUF, Association of persuing, firms and companies.

2. The bank initiated several measures to bring qualitative improvement in the area of credit. A fast track system for processing credit proposals of A+ & A rated corporate client was introduced. In addition, schemes to increase credit fluid sectors like leasing, hire purchase, advances against shares, Can Loan Schemes etc. were formulated and guidelines were issued for increased lending to infrastructure projects.

3. The Company lead managed 1 public and 5 rights issues aggregating Rs 40.541 lakhs through BOB Capital Markets Ltd. BOB Housing Finance Ltd. made fresh disbursements of Rs 21 crores. Total cumulative loans sanctioned reached Rs 127 crores. 3810,00,000 No. of Equity shares returned to Govt. of India.1000,00,000 No. of Equity shares issued through prospectus to the public at a prem. of Rs 75 per share.

1997 1. Bank of Baroda (BoB) has received permission from the Reserve Bank of India to open a branch at Durban in South Africa. BoB proposes to start operations in the country soon after it receives a banking licence from the South African Reserve Bank (SARB).

2. Bank of Baroda (BoB) plans to have an alliance with a foreign bank for merchant banking. The proposed venture would manage external commercial borrowings (ECBs) by Indian corporate and handle disinvestment programmes of public sector undertakings.

3. Bank of Baroda's New York branch has received the highest 1 rating from the US Federal Reserve. This is for the first time that the US Fed has given the highest rating to any Indian bank branch operating in New York.

1998 1. Bank of Baroda has become the first public sector bank to implement the autonomy package announced by the ministry of finance in November, 1997.

2. Bob GLOBAL, the first Indian credit card introduced for international use, with VISA tie-up, is already being accepted by over ten million establishments in over 60 countries.

3. The Bank of Baroda (BoB) plans to restructure its international operations, particularly in Europe and the United States (US) ahead of the launch of the euro, the European Union's single currency unit.

4. Bank of Baroda is weighting the option of setting up a separate subsidiary dedicated exclusively to its highly profitable international business.

5. Bank of Baroda (BoB) has revised the rate of interest on foreign currency non-resident (banks) deposits for various maturities for different currencies effective October 26.

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6. Bank of Baroda has revised the rate of interest on FNCR (b) deposits for various maturities for different currencies with effect from November 30.

1999 1. Bank of Baroda (BoB) will co-ordinate with the finance ministry to set up a debt recovery tribunal (DRT) in Mumbai.

2. Bank of Baroda (BoB) has revised the rate of interest on its FCNR (B) deposits for various maturities and different currencies with effect from February 1.

3. Public sector Bank of Baroda has been designated as a clearing bank for castor oil trading in the future, which will be launched by the Bombay Oilseeds and Oils Exchange (BOOE) on May 10.

4. Bank of Baroda (BOB) is keen to diversify into the insurance sector, where the focus of its activities will be the rural population. BOB has proposed to enter health and general insurance where it plans to mainly target the rural areas.

5. Bank of Baroda (BoB) has made a proposal to the Union ministry of finance (MoF) to tap foreign markets for enhancing the bank's equity base.

6. International rating agency Standard & Poor's (S&P) has revised its rating outlook on Bank of Baroda (BoB) to stable from negative.

2000

LVII a) The BoB as launched services such as Omni BoB and BoB Cash to help the customer practice anywhere-banking at 18 branches with the `Smart Card'. b) Bank of Baroda has set up a core support group consisting 500 knowledge workers from across its branches to help catalyse change management. c) Bank of Baroda has opened its 104th branch in Kalyan and will also offer safe deposit lockers and a housing cell. d) The Bank is exploring strategic tie-ups with local and foreign partners in the area of insurance, retail lending and Web banking. e) Bank of Baroda is in an advance stage of talks with a foreign insurance company for a life insurance joint venture and is expected to finalise the tie-up within a fortnight. f) The Bank of Baroda has signed up to be a depository participant with Central Depository Services (India) Ltd.

2001 1) Bank of Baroda is tying up with a US-based IT company to set up the basic IT infrastructure of the bank at a cost of Rs 300 crore.

2) BANK of Baroda Housing Finance, a subsidiary of the Bank of Baroda, has disbursed a sum of Rs 50.0 crore to 2578 beneficiaries in rural and semi-urban areas under the golden rural housing schemes of the National Housing Bank.

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3) BoB has signed a redeployment policy with its Federation Union, affiliated to the National Confederation of Bank Employees (NCBE) regarding the transfer of clerical staff.

4) Bank (BoB) has lowered interest rates by 25-40 basis points, for FCNR (B) deposits in force from September 5, for different currencies, effective from September 17.

5) Bank of Baroda’s (BoB) net profit during the second quarter has dipped by 22.27 per cent to Rs 98.44 crore, down from Rs 126.64 crore in the corresponding period last fiscal.

2002 1) Bank of Baroda has informed BSE that the Benares State Bank Ltd now stands amalgamated with the bank wef June 20, 2002 and branches of erstwhile Benares State Bank Ltd have started functioning as Bank of Baroda's branches with effect from July 19, 2002.

2) Bank of Baroda has informed BSE that the Bank of Baroda (Uganda) Ltd., - Subsidiary of the Bank in Uganda has proposed to make Public Offer of 8 million equity shares of face value of Ushs.100/- each at an offer price of Ushs.600/- per share. The offer also involves concessional offer of 200 equity shares per staff member at a price of Ushs.350/-. The offer shall open on August 26, 2002. The said offer has been approved by RBI.

3) RBI grants BoB Capital Markets Ltd. to operate as a primary dealer in Government securities market. 4) Comes out with two special policies for the victims of the communal riots in Gujarat

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5) BOBCARDS Ltd, a wholly-owned subsidiary of Bank of Baroda, in collaboration with MasterCard International, unveils PARAS credit cards.

6) BOB CARDS, a subsidiary of Bank of Baroda, and Cholamandalam Investment and Finance Company declare a tie-up to issue co-branded credit cards to Cholamandalam's vehicle finance customers.

2003 1. Appoints IBM, H-P, and Accenture for Business Process Reengineering (BPR).

2. Paves the way for single-window banking across its 2,200 branches in the country

3. Ties up with Bharat Overseas Bank Ltd. (BOBL) to expand credit cards business in South India. 4. Sign MOU with Small Industries Development Bank of India (SIDBI) to co-finance the small scale industries sector

2004 1) The government has chosen Bank of Baroda for channelizing government credit to other countries which runs into billions of dollar

2) Bank of Baroda signed a memorandum of understanding with L&T John Deere Pvt Ltd to prop up farm sector lending.

3) Bank of Baroda inks pact with Escorts Ltd, Indo Farm Tractors & Motors Ltd to boost farm lending.

4) BOB join hands with NIC for non-life insurance products.

5) Bank of Baroda (BoB) has tied up with Mahindra and Mahindra Ltd (M&M) for tractor financing.

2005 1) Bank of Baroda signs contract with HP India Sales Pvt Ltd for implementation of Bank's IT enabled Business Transformation Process.

2) Bank of Baroda has amalgamated its three sponsored regional rural banks (RRBs) into single RRB, called Baroda Gujarat Gramin Bank.

2006 A. Bank of Baroda (BOB) has informed that the Bank and Infrastructure Development Finance Company Ltd (IDFC) have on February 16, 2006, entered into a Memorandum of Understanding (MOU) to enhance the provision of financing and other banking products and services to entities involved in infrastructure development.

B. Bank of Baroda (BOB) has informed that pursuant to powers conferred by clause (b) of sub-section (3) of section 9 of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, read with sub clause (1) of clause 3 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, the Government of India, Ministry of Finance, Department of Economic Affairs (Banking Division) vide their Notification Dated October 31, 2006 have nominated Shri G C Chaturvedi, Joint Secretary (B&I) MOF, GOI as Director of the Bank vice Shri Vinod Rai with immediate effect.

LXI

2007 1. Bank of Baroda and India Infrastructure Finance Company Ltd (IIFC) on January 10, 2007, have entered into a Memorandum of Understanding (MOU) to enhance the provision of financing and other banking products and services to entities involved in infrastructure development.

2. Bank of Baroda, Andhra Bank and M/s. Legal & General Group plc, UK have signed a MoU on November 16, 2007 to form a Joint Venture (JV) for Life Insurance Business.

3. Bank of Baroda has appointed Shri. Atul Agarwal as a part time non official Director on the Board of Directors of the Bank for a period of three years with effect from November 23, 2007 or until further orders, whichever is earlier.

2008 Bank of Baroda has appointed Smt. Shahid as Director on the Board of the Bank under section 9(3) (h) of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 vide Government Notification dated September 15, 2005 for a period of 3 years.

2009 Bank of Baroda has announced the deposit rate cuts by 50 basis points across all maturities. Bank of Baroda has appointed Dr. Masarrat Shahid as part time, non official director on the Board of Bank of Baroda, for a second term of three years w.e.f. October 29, 2009 or until further orders, whichever is earlier.

2010

LXII

1. Bank of Baroda (BoB) has launched a Mobile Micro Loan Factory (MMLF) in Sultanpur district of Uttar Pradesh.

2. Bank of Baroda (BoB) has signed a Memorandum of Understanding (MoU) with the Unique Identification Authority of India (UIDAI).The memorandum which has been signed between the two organizations would make the bank to act as a registrar for the enrolment of UID for its existing and future customers.

3. A memorandum of cooperation (MoC) has been signed by Bank of Baroda (BoB) with the Dubai Multi Commodities Centre Authority (DMCC) in order to provide value added services to DMCC-registered companies as well as to enhance the proposition of operating in Jumairah Lake Towers (JLT) Free Zone.

Source: Dion Global Solutions Limited

CHAPTER: 3

Bank of India

LXIII

Bank of India

Type Public ( BSE : BOI ) Bank Industry Financial services of India Founded 7 September 1906 Registe Headquarters Mumbai, Maharashtra , India red Addres Key people Vijayalakshmi R Iyer (CMD) s Star House, C-5, 'G' Products Commercial Banking Block,’ Retail Banking Bandra Private Banking Kurla Comple Asset Management x, Mortgages Mumbai Credit Cards Mahara shtra Revenue 24,393.50 crore ( US$ 4.44 400051 billion) Tel: 022- Operating 5,384.23 crore ( US$ 979.93 666844 income million) 44 Fax: Net income 2,488.71 crore ( US$ 452.95 022- million) 666844 91 Website www.bankofindia.com Email:

LXIV

[email protected] Website: http://www.bankofindia.co.in Group: Public Sector

Registrars Sharepro Services (India) Pvt.Ltd. 13 AB, Samhita Warehousing Complex, 2nd Floor, Sakinaka Telephone Exchange Lane, Off Andheri-Kurla Road, Mumbai - 400072 Maharashtra Tel: 022-67720300, 67720400 Fax: 022-28591568, 28508927 Email: [email protected] Website: http://www.shareproservices.com

Bank Background - Bank of India

Industry Name: Finance - Banks - Public Sector

House Name: Public Sector

Collaborative Country Name: N.A.

Joint Sector Name: N.A.

Year of Incorporation: N.A.

Year of Commercial Production: N.A.

♦ CMD since nationalisation

1. 1969-1970 : Tribhovandas Damodardas Kansara 2. 1970-1975 : J N Saxena 3. 1975-1977 : C P Shah 4. 1977-1980 : H C Sarkar 5. 1981-1984 : N Vaghul 6. 1984-1986 : T. Tiwari 7. 1987-1991 : R. Srinivasan

LXV

8. 1992-1995 : G. S. Dahotre 9. 1995-1997 : G. Kathuria 10. 1997-1998 : M G Bhide 11. 1998-2000 : S Rajagopal 12. 2000-2003 : K V Krishanamurthy 13. 2003-2005 : M Venugopal 14. 2005-2007 : M. Balachandran 15. 2007-2009 : T.S.Narayanasami 16. 2009-2012 : Alok Kumar Mishra (Former chairman of Indian Bank's Association) 17. 2012–present : Vijayalakshmi R Iyer

♦ History Bank of India

Bank of India is an Indian state-owned commercial bank with headquarters in Mumbai, Maharashtra . Government- owned since nationalization in 1969, it is India 's 4th largest PSU bank, after State Bank of India , Punjab National Bank and Bank of Baroda . It has 4187 branches as on 21/04/2012, including 52 branches outside India, and about 1679 ATMs. BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services. The Bank completed its first one hundred years of operations on 7 September 2006.

♦ Previous banks that used the name Bank of India

At least three banks having the name Bank of India had preceded the setting up of the present Bank of India.

1. A person named Ramakrishna Dutt set up the first Bank of India in Calcutta (now Kolkata ) in 1828, but nothing more is known about this bank. 2. The second Bank of India was incorporated in London in the year 1836 as an Anglo-Indian bank.

LXVI

3. The third bank named Bank of India was registered in Bombay (now Mumbai ) in the year 1864. The current bank

Bank of India, Mumbai Main Branch

The earlier holders of the Bank of India name had failed and were no longer in existence by the time a diverse group of Hindus, Muslims, Parsees , and Jews helped establish the present Bank of India in 1906. It was the first in India promoted by Indian interests to serve all the communities of India. At the time, banks in India were either owned by Europeans and served mainly the interests of the European merchant houses or by different communities and served the banking needs of their own community.

The promoters incorporated the Bank of India on 7 September 1906 under Act VI of 1882, with an authorized capital of Rs. 1 crore divided into 100,000 shares each of Rs. 100. The promoters placed 55,000 shares privately, and issued 45,000 to the public by way of IPO on 3 October 1906; the bank commenced operations on 1 November 1906.

The lead promoter of the Bank of India was Sir Sassoon J. David (1849-1926). He was a member of the Sassoons , who in turn were part of a Bombay community of Baghdadi Jews , which was notable for its history of social service. Sir David was a prudent banker and remained the Chief Executive of the bank from its founding in 1906 until his death in 1926.

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The first board of directors of the bank consisted of Sir Sassoon David, Sir Cowasjee Jehangir, J. Cowasjee Jehangir, Sir Frederick Leigh Croft, Ratanjee Dadabhoy Tata , Gordhandas Khattau, Lalubhai Samaldas, Khetsety Khiasey, Ramnarain Hurnundrai, Jenarrayen Hindoomull Dani, and Noordin Ebrahim Noordin.

1921 Bank of India entered into an agreement with the Bombay Stock Exchange to manage its clearing house.

1946 Bank of India opened a branch in London , the first Indian bank to do so. This was also the first post-WWII overseas branch of any Indian bank.

1967 The Government of Tanzania nationalized BoI's operations in Tanzania and folded them into the government- owned National Commercial Bank , together with those of Bank of Baroda and several other foreign banks.

1969 The Government of India nationalized the 14 top banks, including Bank of India. In the same year, the People's Democratic Republic of Yemen nationalized BoI's branch in Aden, and the Nigerian and Ugandan governments forced BoI to incorporate its branches in those countries.

The Bank was brought into existence by an Ordinance issued on 19th July by the Central Government. In terms of the Ordinance, the Undertaking of `The Bank of India Ltd.' was transferred to and vested in the new bank. The Ordinance was

LXVIII replaced by the Banking. Companies (Acquisition and Transfer of Undertakings) Act, 1969.

1970 National Bank of Southern Yemen incorporated BoI's branch in Yemen, together with those of all the other banks in the country; this is now National Bank of Yemen . BoI was the only Indian bank in the country.

The Acquisition and Transfer of Undertakings Act was declared null and valid by the Supreme Court on 10th February. An ordinance was thereupon promulgated which was later replaced by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 which was made effective retrospectively from 19th July, 1969.

1987 Bank of India took over the three UK branches of Central Bank of India (CBI). CBI had been caught up in the Sethia fraud and default and the Reserve Bank of India required it to transfer its branches.

1989 The Bank of India Finance Ltd. was incorporated in June as a subsidiary of Bank of India to extend a complete package of professional financial services to the corporate sector, including merchant banking, leasing and investment banking. Rs 140 crores capital contributed by Government.

1990 BOI Mutual Fund was established, to provide direct services to investors by pooling their resources and investing in

LXIX capital market securities. Rs 100 crores capital contributed by Government.

1994 A new subsidiary of the bank was formed to manage the investment operations of BOI Mutual Fund. It received Certificate of Commencement of Business on 21st February. Rs 848.38 crores capital contributed by Government.

1995 In terms of Ministry of Finance the accumulated loss of Rs 1369.91 crores adjusted against paid-up capital.

1997 The BOIFIN was associated with 12 issues as Lead Managers/Co-Manager/Arranger. The Company became Depository Participate of National Securities Depository Ltd., for the purpose of clearing and settlement of trades in the dematerialised segment of BSE.

1998 1. Bank of India (BOI) has set up a fully fledged risk management department at its corporate office. The bank has already integrated its money market and Forex operations to set up global treasury which will be better equipped to manage the types of risks arising from capital recent convertibility.

2. Four Banks - State Bank of India (SBI), Bank of India (BoI), Oriental Bank of Commerce (OBC) and Hong Kong

LXX

Bank - have introduced term deposits with a minimum maturity of 15 days.

3. Bank of India (BoI) has tied up with Equifax Venture InfoTech Ltd (EVI) to automate its credit card operations to provide electronic solutions to its customers. EVI is a 50:50 joint venture between the US-based Equifax Inc and Venture InfoTech. According to the agreement, BoI would provide point-of-sale (POS) terminals at its leading card acceptance establishments all over the country.

1999 The public sector, Bank of India (BoI), is currently on an exercise of restructuring its subsidiaries. As a part of the restructuring, the bank will be taking stock of the viability of the subsidiaries and try to turn them around. Bank of India will enter the insurance partnership with a foreign insurance company.

2000 1. Bank of India has introduced floating interest rate on deposits for select customers, besides advancing on Mumbai Inter Bank Offer Rate (MIBOR).

2. Bank of India (BoI) has unveiled major business initiatives like the introduction of a centralised banking system, floating deposit schemes and cash management services.

3. Bank of India (BoI) plans to introduce a centralised banking programme which will facilitate anytime and anywhere banking for its customers.

4. Bank of India and Andhra Bank have become the first public sector banks to receive an in-principle approval to

LXXI

dilute government shareholding in them to 33 per cent through mobilisation of fresh capital via a public issue. 5. Venugopalan, general manager, Bank of India (BoI) has been appointed as the new executive director of Union Bank of India (UBI).

2001 1. State-Run Bank of India has suspended bullion trading in Ahmadabad after being hit by a payment crisis involving a troubled cooperative bank.

2. Bank of India has passed a resolution to return Rs 300 crore capital to the government. Chairman K V Krishnamurthy said the depressed share value has been a matter of concern to the management.

3. Bank of India (BoI) has finalised a comprehensive human resource development (HRD) package for its employees. The scheme is believed to provide impetus to banks’ business growth and will cost the bank around Rs 30 lakh per annum.

4. Bank of India proposes to convert its fully-owned subsidiary in Kenya into a full-fledged bank. The two existing BoI branches in Kenya will also be merged into the entity. According to Mr S.A. Bhat, General Manager, International, and BoI.

2002 1. Bank of India has informed that it has decided to exit from the Mutual Fund Business and therefore the remaining two current Mutual Fund Schemes have been sold to Taurus Mutual Fund.

LXXII

2. Becomes the bank with third highest Non Performing Assets (NPA). 3. Decides to merge BOI Asset Management Co. Ltd. (BOIAMC), a wholly owned subsidiary, with the Bank. 4. Changes the maturity buckets for interest rates on domestic as well as non-resident external rupee (NRE) term deposits.

2003 1. Enters into a tie-up with leading information technology players CMC Ltd. and Infrasoft Technologies to extend its multi-branch banking (MBB) facility to another 450 branches in 21 cities.

2. Four state-owned banks (Bank of India (BoI), Indian Bank, Syndicate Bank and United Bank of India) enter into an agreement to share their respective ATM (automated teller machine) networks.

3. The bank has taken possession of a tea factory in Coonoor under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

4. The Company has tied up with insurers for Bank assurance products - both life insurance and general insurance. The bank launched some of the products on December 09, said it had tied up with ICICI Prudential Life Insurance Company and National Insurance Company.

2004 1) Bank of India has informed that the Govt of India vide its notification dated January 09, 2004 has nominated Mr. V S Das, Chief General Manager-in-charge, Department of Government and Bank Accounts, RBI as Director on the

LXXIII

Board of the Bank w.e.f. January 09, 2004 in place of Mr. M P Kothari, Regional Director, RBI.

2) Revises interest rates on its FCNR deposits in dollar and euro currencies.

3) Launches Star IPO, a demand loan for investors interested in subscribing to initial public offerings (IPO) approved by the bank.

4) Bank of India (BoI) has raised Rs 200 crore by way of issuing Tier II subordinated bonds.

2005 1) Bank of India (BoI) enters collaboration with ACIL- Navasarjan Rural Development Foundation (ANARDE), a non-government organisation (NGO) to increase rural penetration and boost lending to the agriculture sector.

2) Bank of India ties up with ICICI Prudential Life Insurance to provide cover to housing loan borrowers against risk of death during the loan tenure.

3) Bank of India and Banco Popolare Di Verona E Novara signed a Memorandum of Understanding (MoU) for supporting their respective customers doing business in each other's countries.

2006 1) BoI plans to upgrade the Shenzen and Vietnam representative offices to branches, and to open

LXXIV

representative offices in Beijing , Doha , and Johannesburg . In addition, BoI plans to establish a branch in Antwerp and a subsidiary in Dar-es-Salaam , marking its return to Tanzania after 37 years.

2) Change of address: the Company Secretary Bank of India Share Department, 8th Floor, Star House, C - 5, G. Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

2008 1) Bank of India has informed that the Government of India, Ministry of Finance, Department of Financial Services vide its Notification has nominated Shri. Amit Kumar Motayed as Officer Employee Director in place of Shri. V Eswaran for a period upto January 31, 2011 from the date of notification or until he ceases to be an officer of the Bank of India or until further orders, whichever is the earliest.

2) Bank of India on July 23 opened the first branch of its Tanzanian subsidiary, Bank of India Tanzania at Dar-es- Salaam.

2011 Bank of India opened a fully owned Subsidiary in Auckland, New Zealand on 6 October 2011 (Bank of India (New Zealand) Ltd.)

2012

Bank of India opened a fully owned subsidiary in Uganda on 18 June 2012 (Bank of India (Uganda) Ltd.).

LXXV

Source: Dion Global Solutions Limited

LXXVI

Chapter: 4

Punjab National Bank

LXXVII

Punjab National Bank

Type Public

Traded as BSE : 532461 NSE : PNB

Industry Banking, Financial services

Founded 1895

Founder(s) Lala Lajpat Rai Headquarters New Delhi , India PUNJA Key people K R Kamath (Chairman & MD) B NATO Products Credit cards, consumer banking , NAL corporate banking , finance and BANK insurance , investment banking , Registe mortgage loans , private banking , red private equity , wealth management Addres s 7, Bhikhaiji, Cama Place, Revenue 416.86 billion (US$7.59 billion) New (2012) Delhi Delhi Net income 50.25 billion (US$914.55 million) 110607 (2012) Tel: 011- Total assets 4.704 trillion (US$85.61 billion) (2012) LXXVIII Owner(s) Government of India Employees 62,127 (2012)

Website www.pnbindia.in 26102303 011-23323654 Fax: 011-26196456 011-23711663 Email: [email protected] Website: http://www.pnbindia.in Group: Public Sector

Registrars M C S Ltd. F-65, Okhla Industrial Area Phase-1, New Delhi - 110020 Delhi Tel: 011-41406149, 41406151,41406152 Fax: 011-41709881 Email: [email protected] Website: http://www.mcsdel.com

♦ Company Background - Punjab National Bank

Industry Name: Finance - Banks - Public Sector

House Name: Public Sector

Collaborative Country Name: N.A.

Joint Sector Name: N.A.

Year of Incorporation: N.A.

Year of Commercial Production: N.A.

♦ LISTING INFORMATION

Face Value of Equity Shares: 10

LXXIX

Market Lot of Equity Shares: 1

BSE Code: 532461

NSE Code: PNB

BSE Group: A

Punjab National Bank ( PNB ) is an Indian financial services company based in New Delhi, India . PNB is the third largest bank in India by assets. It was founded in 1894 by Lala Lajpat Rai and is currently the second largest state-owned commercial bank in India ahead of Bank of Baroda with about 5000 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by the Bankers' Almanac. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul , and representative offices in Almaty , Dubai , Oslo, and Shanghai. Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore . The founding board was drawn from different parts of India professing different faiths and a varied background with, however, the common objective of providing country with a truly national bank which would further the economic interest of the country. PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala Harkishan Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. The board first met on 23 May 1894. Ironically, the PNB Website now claims Lala Lajpat Rai to be the founding father, surpassing Rai Mul Raj and Dyal Singh Majithia. The bank opened for business on 12 April 1895 in Lahore .

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PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, Commercial Bank, was established in 1881 in Faizabad , but failed in 1958.)

PNB has had the privilege of maintaining accounts of national leaders such as Mahatma Gandhi , Shri Jawahar Lal Nehru , Shri Lal Bahadur Shastri , Shrimati Indira Gandhi , as well as the account of the famous Jalianwala Bagh Committee.

In 1900, PNB established its first branch outside Lahore in Rawalpindi . Branches in Karachi and Peshawar followed. The next year, PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi Circle.

In 1947, at the Partition of India and the commencement of Pakistani independence, PNB lost its premises in Lahore, but continued to operate in Pakistan. Partition forced PNB to close 92 offices in West Pakistan, 33% of the total number, and which held 40% of the total deposits. PNB still maintained a few caretaker branches. On 31 March 1947, even before Partition, PNB had decided to leave Lahore and transfer its registered office to India; it received permission from the Lahore High Court on 20 June 1947, at which time it established a new head office in Calcutta.

1965 After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks. PNB also had one or more branches in East Pakistan ( Bangladesh ).

1969

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The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on 19 July 1969.

1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of India after the branch was involved in a fraud scandal.

1986 PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition added Hindustan's 142 branches to PNB's network.

1996 A package was developed for corporate customers for fast remittance of funds from different up-country branches to the controlling office. The concept of 'Chief Host' introduced by the bank for resolving customers' complaints in the minimum possible time has resulted in substantial improvement in customer service. The company also entered into new activity of arranging Mergers, Acquisitions and Takeovers which has been quite rewarding in terms of return.

2000 1. The Credit Rating Information Services of India has suspended its rating for the fixed deposit programmes of Amruntanja Finance.

2. Punjab National Bank and Bank of Baroda will tie up to form a subsidiary for a foray into life insurance business, banking industry.

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3. PNB has launched a gold import scheme. The gold will be imported through an arrangement with Commerz bank.

4. Punjab National Bank has become the latest big player to enter the credit card market. The card will have two variants -- Gold and Classic.

5. Primary market dealers PNB Gilts Ltd is launching a retail scheme in the first week of January to rope in individuals as investors for govt. securities. It has recently tied up with.

6. Punjab National Bank and will be using the huge network of 2000 branches of the bank all over the country for distribution and receipt of forms for investment in govt. securities.

2002 1) Punjab National Bank is in a joint venture with Infosys for the implementation of a Centralised Banking Solution for it. The bank plans to implement Centralised Banking Solutions establishing connectivity between its branches to cover 1,500 to 2,000 branches and all ATMs by 2004.

2) Punjab National Bank has informed that the first AGM of the shareholders of the Bank was held on August 05, 2002. The Chairman declared the following candidates elected as Directors: Dr Pritam Singh.

3) Punjab National Bank has launched a special loan scheme called 'Fin-Basket', a composite package of retail loans, for a minimum size of Rs 5 lakhs.

2003

LXXXIII

1. Punjab National Bank (PNB) has entered into an alliance with New India Assurance for selling its general insurance products.

2. Punjab National Bank has informed that Shri V K Sibal, a director on the Board of the Bank has resigned from the Board. Ministry of Finance, Govt. of India, vide its letter dated May 09, 2003 has conveyed the acceptance of resignation w.e.f. May 07, 2003.

3. Punjab National Bank has informed the Exchange that the Bank has signed a Memorandum of Understanding (MOU) on June 24, 2003 with Principal Financial Services Inc. (USA) and Vijaya Bank for joint venture partnership in Life Insurance, Pensions and Asset Management’s (MF) business. 4. Punjab National Bank (PNB) has formed a strategic alliance with Infrastructure Leasing and Financial Services Ltd (IL&FS) to set up a private equity fund for investing in domestic companies.

5. New Delhi: Punjab National Bank has entered an agreement with Oriental Bank of Commerce, Indian Bank, UTI Bank and Global Trust Bank for sharing ATMs spread across the country.

6. Board of Directors approved investment of Rs 250 million in the units of 'Leverage India Fund' managed by IL&FS Investments Managers Ltd, and has entered into MoU with IL&FS and IL&FS Investment Managers to sponsor the Fund.

7. The Ministry of Finance, Government of India, vide their notification dated November 25, 2003, Shri Anand Swarup Agarwal has been nominated as part-time non official

LXXXIV

Director of the bank for a period of 3 years from the date of notification.

8. The next year, PNB established a branch in Kabul , Afghanistan and a representative office in Shanghai. PNB also established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal. Currently, PNB owns 20% of Everest Bank.

2004 1. Delhi based Punjab National Bank (PNB) and Bangalore- based Vijaya Bank enter into a four-way partnership with Principal Financial of the US and Berger Paints to set up an insurance broking company

2. Export Credit Guarantee Corporation of India Ltd (ECGC) and Punjab National Bank (PNB) sign a corporate agency agreement for marketing ECGC's export credit insurance products through the network of PNB branches.

3. Punjab National Bank has informed that the bank has signed agreement with M/s NCR Corporation India Pvt Ltd for providing clearance of Intercity cheques within 48 hours after the cheque is presented, at selected centers using cheque truncation, where there is Image based Cheque Clearing System.

4. Punjab National Bank (PNB) has enlisted the services of computer industry giant Intel to evaulate its current and future technological requirements. A MoU was signed for the deployment of various IT-related solutions today between the bank and Intel.

LXXXV

5. ICICI Bank and Punjab National Bank have signed a memorandum of understanding (MoU) for ATM network sharing, giving customers an access to over 2,200 ATMs in India

6. PNB implements Loans and Advances Data Desk for Evaluations and Reports, (LADDER) system for rationalisation of returns, asset classification and provisioning, credit monitoring and NPA management

7. Tata Consultancy Services (TCS) has joined hands with PeopleSoft to handle an R 5-10 crore worth project mandated by Punjab National Bank (PNB) to implement human capital management and payroll solution.

2006

1) Punjab National Bank (PNB) has tied up with Indian Airlines for online booking of air tickets.

2) Punjab National Bank has informed that Shri Rakesh Singh, Joint Secretary (IF), Ministry of Finance has been appointed Government nominee Director on the Board of the Bank w.e.f. October 20, 2006 under Clause 9(3)(b) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.

3) Punjab National Bank has informed that Sh. An S Agarwal, Government nominee Director on the Board of the Bank w.e.f. November 25, 2003, has demitted the office on November 24, 2006 on completion of his tenure of 3 years.

2007

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1) Punjab National Bank has informed that the Government of India, Ministry of Finance, Department of Economic Affairs (Banking Division), New Delhi vide Notification dated June 06, 2007 has appointed Shri. Jag Mohan Garg as a Whole- time-Director (designated as Executive Director) on the Board of Punjab National Bank from the date of his taking over charge of his post or until further orders or till the date of his superannuation i.e. upto July 31,2010 whichever Is earlier.

2) Punjab National Bank is entering into a MoU with India Infrastructure Finance Co. (IIFC) on October 17, 2007 with an aim to extend its cooperation and support to IIFC in areas of creating a deal flow of infrastructure projects.

2008 1. Punjab National Bank entered into a memorandum of understanding (MoU) with IL&FS Cluster Development Initiative Ltd in order to provide impetus to financing of industrial infrastructure projects.

2. Punjab National Bank (PNB) has tied up with Net worth Stock Broking Ltd (NSBL) for an Internet trading alliance. 3. Punjab National Bank has informed that Government of India has nominated Shri Vinod Kumar Mishra as part-time non-official Director on the Board of the Bank for a period of three years from the date of Notification of his appointment or until further orders, whichever is earlier.

2009 1. The Punjab National Bank has opened a new branch at Leicester in Britain. Leicester has a large section of people of Indian origin. The branch has been opened this week in the Belgrave Commercial Centre, in the heart of what is

LXXXVII

called the Golden Mile - the heart of Asians business and culture. It is also popularly known as 'Little India'.

2. Punjab National Bank (PNB) has entered into a pact with Ashok Leyland to extend finance to the latter's commercial vehicle customers.

2010 1. Punjab National Bank has forged an alliance with Oriental Insurance Company Limited, to offer a floater Health Insurance Policy covering the proposer and family under one sum insured.

2. Oriental Insurance Company (OICL) and Punjab National Bank launched 'PNB-oriental Royal Mediclaim Policy', exclusively for the bank customers

3. Punjab National Bank - Reserve Bank of India has issued Certificate of Registration No. N-13.01980 in the name of INDIA FACTORING & FINANCE SOLUTIONS PVT. LTD. (Joint Venture Company) permitting to commence & carry on the business of Non-Banking Financial Institution.

4. Punjab National Bank signed a Memorandum of Agreement with Principal Financial Group of Mauritius and Vijaya Bank for restructuring of their existing joint ventures subject to statutory approvals.

2011 a) PNB has launched two new deposit schemes- FCNR Premium Linked Deposit Scheme and NRE Rupee Flexible Deposit Scheme- which would provide special benefits to the NRIs.

LXXXVIII b) PNB's Mega Recovery Camps receives excellent response from small agricultural borrower in recovering the loan amount.

2012 a) In a move to bring cheers for the loan seekers, India's second largest public sector lender, Punjab National Bank (PNB) has reduced interest rates on housing and car loans by up to 50 basis point b) PNB Awarded Overall Best Corporate Social Responsibility Awards 2012. c) PNB Awarded SKOCH Award on Financial Inclusion 2012. d) In December 2012 it signed an agreement with US based life Insurance company MetLife to acquire a 30% stake in MetLife's Indian affiliate MetLife India Limited. The company would be renamed PNB MetLife India Limited and PNB would sell MetLife's products in its branches

2013 India's second largest public sector lender Punjab National Bank (PNB) acquired 30 per cent stake in Metlife India Insurance Co. Ltd.

Source: Dion Global Solutions Limited

LXXXIX

Chapter: 5

IDBI Bank

IDBI Bank Limited

Type Public ( BSE : 500116 )

Industry Banking, Financial services Founded July 1964

Headquarters Mumbai , India

Key people RM Malla (CMD) IDBI Products consumer banking , corporate Bank banking , finance and insurance , investment banking , mortgage Registe red loans , private banking , private Addres equity , wealth management , s IDBI Tower, Agriculture Loan WTC Comple Revenue 25,489 crore (US$4.64 billion) x, Cuffe (2012) Parade Mumbai Operating 4,057 crore (US$738.37 million) Mahara income (2012) shtra 400005 Net income 2,032 crore (US$369.82 million) Tel: (2012) 022-

Total assets 265,000 crore (US$48.23 billion) (2012) XCI Employees 15,0000 (2012)

Website www.idbi.com 66552779 022-66553062 Fax: 022-22182352 Email: [email protected] Website: http://www.idbi.com Group: IDBI Group

Registrars Karvy Computershare Private Ltd. Plot No. 17-24, Vittal Rao Nagar, Madhapur, Hyderabad - 500081 Andhra Pradesh Tel: 040-44655000 Fax: 040-44655814, 23420814 Email: [email protected] Website: http://www.karvy.com

Bank Background - IDBI Bank

Industry Name: Finance - Banks - Public Sector

House Name: IDBI

Group Collaborative Country Name: N.A.

Joint Sector Name: N.A.

Year of Incorporation: 1964

Year of Commercial Production: N.A.

LISTING INFORMATION

Face Value of Equity Shares: 10

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Market Lot of Equity Shares: 1

BSE Code: 500116

NSE Code: IDBI

BSE Group: A

IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India. RBI categorized IDBI as an "other public sector bank". It was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of the fledgling Indian industry. It is currently 10th largest development bank in the world in terms of reach with 1594 ATMs, 1000 branches including one overseas branch at DIFC, Dubai and 678 centers including two overseas centres at Singapore & Beijing. Some of the institutions built by IDBI are the Securities and Exchange Board of India (SEBI), National Stock Exchange of India (NSE), the National Securities Depository Limited (NSDL), the Stock Holding Corporation of India Limited (SHCIL), the Credit Analysis & Research Ltd , the Exim Bank (India) , the Small Industries Development Bank of India (SIDBI), the Entrepreneurship Development Institute of India , and IDBI Bank, which is owned by the Indian Government. IDBI Bank is on a par with nationalized banks and the SBI Group as far as government ownership is concerned. It is one among the 26 commercial banks owned by the Government of India. The Bank has an aggregate balance sheet size of Rs. 2, 90,837 crore as on March 31, 2012.

♦ Recent developments

To meet emerging challenges and to keep up with reforms in financial sector, IDBI has taken steps to reshape its

XCIII role from a development finance institution to a commercial institution. With the Industrial Development Bank (Transfer of Undertaking and Repeal ) Act , 2003, IDBI attained the status of a limited company viz. "Industrial Development Bank of India Limited" (IDBIL). Subsequently, the Reserve Bank of India (RBI) issued the requisite notification on 30 September 2004 incorporating IDBI as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI formally entered the portals of banking business as IDBIL from 1 October 2004. The commercial banking arm, IDBI BANK, was merged into.

In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48 percent. The company ended the year with over 300 Cr in premiums as on 31 March 2009.The name of IDBI Fortis Life Insurance is now changed to IDBI Federal Life Insurance Co Ltd.

It has bought 10% stake in upcoming commodity bourse Universal Commodity Exchange (UCX) for Rs 10 crore, the bank's top official said. The deal was completed recently. RM Malla, chairman and MD of IDBI Bank, confirmed that the bank had picked up 10% in what will become the country's sixth commodity futures exchange. "The idea behind acquiring equity is to push agriculture loans through this venture," said Malla. "The other advantage is IDBI will be the only bank among the promoters and therefore all transactions of the exchange will be routed through IDBI.”

It was the winner in two categories in Dun & Bradstreet's Polaris Software Banking Awards 2011. It has now a network of 1017 branches, 676 centres and 1597 ATMs as on December 31, 2012.The Bank's total business, during Fy 2011-12, reached Rs. 3,91,651 Crore, Balance sheet reached Rs. 2,90,837 Crore while it earned a net profit of Rs. 2032 Crore (up by 23.15%).

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♦ Linking of Aadhaar

As Government of India has decided to introduce ‘Direct Cash Transfer’ (DCT) of various welfare schemes directly to beneficiaries’ bank account which is linked with Aadhaar Number w.e.f. January 1, 2013, IDBI Bank customers can link their Aadhaar account.

♦ Overview of development banking in India

The concept of development banking rose only after Second World War, after the Great Depression in 1930s. The demand for reconstruction funds for the affected nations compelled in setting up a worldwide institution for reconstruction. As a result the IBRD was set up in 1945 as a worldwide institution for development and reconstruction. This concept has been widened all over the world and resulted in setting up of large number of banks around the world which coordinating the developmental activities of different nations with different objectives among the world. The Narashimam committee had recommended to give up its direct financing functions and to perform only the promotional and refinancing role. However, the S.H.Khan committee, appointed by the RBI, recommended its transformation into a universal bank.

The course of development of financial institutions and markets during the post-Independence period was largely guided by the process of planned development pursued in India with emphasis on mobilisation of savings and channelling investment to meet Plan priorities. At the time of Independence in 1947, India had a fairly well developed banking system. The adoption of bank dominated financial development strategy was aimed at meeting the sectoral credit needs, particularly of agriculture and industry. Towards this end, the Reserve Bank concentrated on regulating and

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developing mechanisms for institution building. The commercial banking network was expanded to cater to the requirements of general banking and for meeting the short- term working capital requirements of industry and agriculture. Specialised development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the Reserve Bank were set up to meet the long- term financing requirements of industry and agriculture. To facilitate the growth of these institutions, a mechanism to provide concessional finance to these institutions was also put in place by the Reserve Bank.

The first development bank In India incorporated immediately after independence in 1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer institutional credit to medium and large-scale. Then after in regular intervals the government started new and different development financial institutions to attain the different objectives and helpful to five-year plans.

♦ Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country. Although Government shareholding in the Bank came down below 100% following IDBI’s public issue in July 1995, the former continues to be the major shareholder (current shareholding: 75%). IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI also

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provides indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms.

IDBI has played a pioneering role, particularly in the pre-reform era (1964–91),in catalyzing broad based industrial development in the country in keeping with its Government- ordained ‘development banking’ charter.

Narasimham committee recommends that IDBI should give up its direct financing functions and concentrate only in promotional and refinancing role. But this recommendation was rejected by the government. Later RBI constituted a committee under the chairmanship of S.H.Khan to examine the concept of development financing in the changed global challenges. This committee is the first to recommend the concept of universal banking. The committee wanted the development financial institution to diversify its activity. It recommended harmonising the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking.

♦ Industrial Investment Bank of India Ltd.

The Industrial Investment Bank of India is one of oldest banks in India. The Industrial Reconstruction Corporation of India Ltd., set up in 1971 for rehabilitation of sick industrial companies, was reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI Act, 1984. With a view to converting the institution into a full- fledged development financial institution, IRBI was incorporated under the Companies Act, 1956, as Industrial Investment Bank of India Ltd. (IIBI) in March 1997. IIBI offers a wide range of products and services, including term

XCVII loan assistance for project finance, short duration non-project asset-backed financing, working capital other short-term loans to companies, equity subscription, asset credit, equipment finance as also investments in capital market and money market instruments.

In view of certain structural and financial problems adversely impacting its long-term viability, IIBI submitted a financial restructuring proposal to the Government of India on 25 July 2003. IIBI has since received certain directives from the Government of India, which, inter alias, include restricting fresh lending to existing clients approved cases rated corporate, restrictions on fresh borrowings, an action plan to reduce the overhead expenditure, disposal of fixed assets and a time-bound plan for asset recovery/reconstruction. The Government of India had also given its approval for the merger of IIBI with IDBI and the latter had already started the due diligence process. But on 17 December 2005 the IDBI rejected any such merger.

♦ Acquisition of United Western Bank

In 2006, IDBI Bank acquired United Western Bank in a rescue. Annasaheb Chirmule, who worked for the cause of Swadeshi movement, founded Satara Swadeshi Commercial Bank in 1907, and some three decades later founded United Western Bank. The bank was incorporated in 1936, and commenced operations the next year, with its head office in Satara, in Maharashtra State. It became a Scheduled Bank in 1951. In 1956 it merged with Union Bank of Kolhapur, and in 1961 with Satara Swadeshi Commercial Bank. At the time of the merger with IDBI, United Western had some 230 branches spread over 47 districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and Nagpur.

1964

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The Company was incorporated on 1st July, at Mumbai. The Bank was established as a wholly owned subsidiary of the Reserve Bank of India on 1st July, under a special statute, viz., Industrial Development Bank of India Act.

1965 a) The Bank decided to supplement its refinance operations with a measure of risk-sharing with other institutions on a systematic basis and introduced a participation scheme for this purpose, with effect from 1st April, 1966. b) The Development Assistance Fund was established on 27th March, in terms of Notification dated 16th March, issued by the Government of India.

1972 The IDBI took initiative in establishing a technical consultancy service centre at the State level in Kerala in February called the Kerala Industrial and Technical Consultancy Organisation and contributed 51% to its paid-up capital of Rs 2 lakhs.

1973 1. North Eastern Industrial and Technical Consultancy Organisation, Ltd. (NEITCO), was sponsored by the IDBI in May. Another technical consultancy organisation, viz., Bihar Industrial and Technical Consultancy Organisation, Ltd. (BITCO), was set up.

2. Refinance facilities are provided to eligible banks, which are authorised dealers in foreign exchange, against medium-term export credits granted to exporters in the

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private sector, who are manufacturers, recognised export houses or other exporters of standing.

3. The Bank as a apex institution, has also been vested with the responsibility of strengthening the resources position of the term financing institutions with a view to enabling them to expand and diversify their activities.

4. The Bank received various lines of credit from IDA/World Bank from time to time beginning from the year in US Dollars.

1976 a) With a view to promoting fuller utilisation of capacity, technological up gradation and export development, the Government of India established in March, the Technical Development Fund (TDF). b) Two Seed Capital Assistance Schemes were introduced by IDBI during the year viz. (i) SFC's Special Share Capital Scheme and (ii) IDBI's own scheme.

1977 a) IDBI introduced in January, at the instance of the Government of India, a scheme for providing rupee assistance, to industrial units receiving import licences, under the TDF. b) IDBI, apart from giving resource support for setting up of IFCI, UTI and SFCs, helped in establishing Shipping Credit and Investment Corporation of India, Ltd., Stock Holding Corporation of India Ltd., Securities and Exchange Board of India, Discount and Finance House of India, Ltd., Tourism Finance Corporation of India Ltd.,

Over The Counter (OTC) Exchange of India, Biotech Consortium India Ltd., and Indian Investment Management Company Ltd.

1985 I. A new scheme known as Equipment Refinance Scheme was introduced with effect from July 1st.

II. The Bank introduced a new scheme called the Foreign Currency Refinance scheme. Under this Scheme, the Bank would extend foreign currency refinance facility to SIDCs/SIICs under the Bank's Normal Refinance Scheme.

III. A special scheme of assistance for installing in-house quality testing facilities was introduced under SIDF. Presently, this scheme is being operated by SIDBI.

1986 Small industries development fund was set up in May to pay concentrated attention to the provision of financial and non-financial inputs to the small scale sector. 30, 00,000 shares issued.

1987 The National Equity Fund Scheme was introduced in August for providing equity type support to new tiny and small scale industrial units which are engaged in manufacturing activities and also for rehabilitation of potentially viable sick SSI units. 20, 00,000 shares issued.

1991 1. With effect from 1st April, DAF was merged with the General Fund.

2. The Bank's resources can be augmented through issue of bonds and debentures with or without Government guarantee.

1992 1. The bank entered the area of merchant banking to provide professional advice and services to industry for raising resources from capital market, acquisition of assets on lease and mergers/take-overs of existing units.

2. The Bank set up a foreign exchange dealing room to deal with all foreign exchange transactions. The bank had set up Investor Services of India Ltd. with a view to providing registrar and transfer services.

3. In order to provide wider range of direct finance to meet the specific requirements of clients, the bank introduced new products such as Asset Credit and Equipment Finance. Also introduce equipment leasing to meet the increasing demand for such services. 50, 00,000 shares issued.

1994 A. The Bank obtained the membership of National Stock Exchange. IDBI Bank Ltd. promoted and incorporated in September as a commercial bank with an authorised capital of Rs 500.

B. The Bank had set up a Mutual Fund as a trust with a view to offering innovative investment products to investors backed by high quality servicing. 17, 30, 93,300 shares allotted to public.

1995

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1. 17 New ventures were sanctioned. The beneficiary industries were electronics, industrial automation, industrial products and machinery, computer software etc.

2. The bank entered into an Umbrella Grant Agreement with the World Bank for US $ 50 million aimed at phasing out use of ozone Depleting Substances in industry as part of ongoing efforts to reduce environmental degradation.

3. Loan was approved by the World Bank as part of the financial sector development of select commercial banks underwrites the bank acts as pass through Agent.

4. 5,80,000 shares offered to employees, 10,02,20,000 shares were offered to public along with 19,78,000 shares not taken up in various categories (all were taken up along with unsubscribed portion of shares offered to other categories).

1997 a) IDBI became the first financial institution to apply NSDL as DP. b) IDBI has signed an agreement with National Securities Depository Ltd (NSDL) to get its equity shares admitted for dematerialisation. c) The Reserve Bank of India has shot down the IDBI's proposal to privately place equity shares of its subsidiary, IDBI Bank, with the shareholders of the financial institution. d) The largest financial institution of the country IDBI has merged its foreign exchange and domestic treasury operations following rapid deregulation of the money and foreign exchange markets in the country.

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e) The IDBI has signed a 0 million line of credit with the Export-Import Bank of Japan (EXIM-J) at Tokyo.

1998 a) American Express Bank, the travel related and financial services company, has entered into a strategic alliance for financial services with IDBI Bank. b) IDBI may tie the knot with US based .9 billion Principal Financial Group for management of provident & pension funds in the country. c) The Industrial Development Bank of India has tied up with 8 commercial banks for extension of loans against its Flexi bonds V issue slated to be launched from December 21.

1999 1. IDBI Bank, promoted by two premier financial institutions - Industrial Development Bank of India (IDBI) and Small Industries Development Corporation of India (SIDBI) - is coming out with a public issue of 40 million equity shares of Rs.10 each at a premium of Rs.8 per share aggregating Rs.72 crores.

2. THE IDBI is all set to launch the sixth issue of Flexi bonds, from February 22 to mobilise Rs. 1,500 crores, inclusive of a green shoe option of Rs. 750 crores.

3. American Express Bank (Amex) has entered into a strategic alliance with IDBI Bank for its personal financial services (PFS) division to jointly explore the development of products such as smart card and debit card, and market

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complementary products and services to customers of both the banks.

4. The Board for Industrial and Financial Reconstruction (BIFR) has declared ATV Projects a sick company and appointed IDBI as operating agency (OA) for preparing the rehabilitation package for the company.

5. IDBI has succeeded in entering into one-time settlement for 77 cases for fiscal year 1998-99 as compared to 45 cases in the previous year.

6. The IDBI has decided to enter the market for the first time this fiscal to borrow Rs 1500 crore through its Flexibond- VII issue.

7. A Memorandum of Understanding (MoU) between IDBI and Principal Financial Group was signed in Mumbai.

2000 a) The Bank has been made the nodal agency for disbursing the Montreal Protocol-approved million compensation package to four Indian companies, including SRF Ltd., and Gujarat Flurocarbonds. b) IDBI and CIDC would set up a joint working group to chalk out modalities for lending to the construction industry and risk assessment of the business. c) The Company has proposed to undertake a capital restructuring exercise to reduce the Government stake to 51 per cent through an American Depository Share issue. d) IDIB Principal Asset Management Company, the 50:50 joint ventures between Industrial Development Bank of

India and Principal Financial Group-USA, has brought about several changes in its top management. e) The company is launching a special deposit scheme- IDBI Suvidha - to mop-up Rs 2,200 crore worth of outflow on account of premature redemption of the discount bonds issued five years back. f) Industrial Development Bank of India and the Export- Import bank of the United States have signed an memorandum of understanding for financing in the amount of 0 million to support import of US-sourced goods for Indian borrowers. g) Industrial Development Bank of India has set up two internal task forces, one to explore opportunities to enter the insurance sector, while the other to lead IDBI Intech, a newly form IT subsidiary. h) Industrial Development Bank of India is considering hiving off its venture capital scheme as a separate company before the end of the year.

2001 i. India Post and Industrial Development Bank of India (IDBI) Principal Asset Management Company have entered into a joint partnership to make available current and future investment opportunities through post offices across India. ii. Credit Rating and Information Services of India Ltd (Crisil) has downgraded the outstanding bond issues and the certificate of deposit programme of the Industrial Development Bank of India.

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iii. India's largest term lender Industrial Development Bank of India raised Rs 55 crore (.68 million) through a private placement of 90-day commercial paper, debt dealers said.

2002 1) Board accords in-principal approval for group's entry into non-life reinsurance broking business.

2) ICRA assigns downward rating to IDBI long-term programmes.

3) FIs, banks given more power to recover NPAs through Asset Reconstruction Ordinance.

4) Refuses to accept GE-Bechtel offer to restart Dabhol Power Company (DPC).

5) Government gives nod for the restructuring package for the company by repealing the IDBI Act and facilitating the conversion of the development financial institution into a stand-alone bank.

6) Sells 2,98,174 fully paid equity shares of Rs 10/- each of InfoTech Enterprises, reduces the holding in the company to 4.51%

2003 A. IDBI board Okays 50 % Asset Management Company (AMC) stake sell off to Principal Financial Group of the USA.

B. Offloads 25 lakh Discount and Finance House of India (DFHI) equity shares to State Bank of India (SBI).

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C. Divests its 50% stake in AMC & Trustee Company in favour of Principal Financial Group of the USA for Rs 94 crore.

D. Modifies its financing pattern for films by doing away with profit-sharing or overflow, and the completion bond guarantee.

E. Offloads its stake in Gujarat Borosil Ltd. to Vulcan Exports Ltd.

F. Signs a formal subscription Agreement on July 7, 2003 with Nepal Development Bank Ltd. (NDBL), a private sector development bank in Nepal. Buys 10% stake in NDBL

G. Acquires the knit processing unit of Suditi Industries Ltd on July 4which is situated close to Navi Mumbai under the Securitisation Act.

H. J K Corp allots 26, 53,500 shares to IDBI by way of conversion of part of rupee term loans into equity shares of the company under restructuring scheme

I. IDBI Home finance mops up million through external commercial borrowings.

J. UTI Chairman & Managing Director (CMD) Mr. M Damodaran takes charge as CMD of IDBI and holds concurrent charge from October 1 as part of an interim arrangement.

2004

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1. Industrial Development Bank of India (IDBI) has informed that the Government of India, Ministry of Finance vide notification dated February 4, 2004 states that in supersession to the notification dated September 29, 2003 and consequent upon the approval of the Appointment Committee of the Cabinet, it has decided to entrust the additional charge of the post of Chairman and Managing Director (CMD), IDBI to Shri M. Damodaran, Chairman, Unit Trust of India w.e.f. October 1, 2003 to May 31, 2004.

2. Standard & Poor's (S&P) Ratings Services on February 19 assigned Industrial Development Bank of India's (IDBI) proposed 0 million senior unsecured notes a 'BB' rating. An obligation rated BB is less vulnerable to non-payments and other speculative issues. However, it faces major ongoing uncertainties or exposures to adverse business, financial or economic conditions, which could lead to obligour's inadequate capacity to meet its financial commitments on the obligation.

3. The promoters of Eastern Threads Ltd (ETL) have purchased 4 lakh equity shares of face value of Rs 10 each of ETL, from Industrial Development Bank of India, at a price of Re 1 per share. The transaction constituted over one per cent of the paid up capital of the ETL.

2005 Industrial Development Bank of India Ltd (IDBI) has informed that the Public Issue of IDBI Flexibonds - 23, which was opened for subscription on March 21, 2005 has been closed on March 29, 2005.IDBI enters into CO-Financing tie- up with SIDBI.

2006

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1. IDBI bags IT Team of the Year Award 2005.

2. IDBI - Tripartite MOU with Federal Bank & Forties Insurance International

3. IDBI bags Asia money’s Best India Deal of the Year Award 2005.

2007 1. IDBI, Federal Bank and Fortis Sign Joint Venture Agreement To Establish A New Life Insurance Company In India

2. IDBI Launches new 600 days ‘Suvidha Plus’ FD Scheme

2008 1. Industrial Development Bank Of India Limited has submitted to a copy of the Resolution passed by the Board by circulation on March 12, 2008 in respect of change of name of the Bank to IDBI Bank Limited by passing a Special Resolution through Postal Ballot in terms of Section 192A of the Companies Act, 1956.

2. Company name has been changed from Industrial Development Bank of India Ltd to IDBI Bank Ltd.

3. IDBI bags two Special IT Awards from IBA.

4. IDBI ties up with Motilal Oswal Securities for online trading.

2009

A. IDBI Bank has slashed its benchmark prime-lending rate (BPLR) by 25 basis points to 12.75 per cent. The reduction will come into effect from July 1 and will apply to all loans linked to the BPLR, including home loans, according to a press release from the bank. The bank cut deposit rates by 25-50 basis points earlier this week.

B. IDBI Bank bags IBA's prestigious Banking Technology award.

C. IDBI Bank Ltd and Tata Motors Limited (TML) sign MoU for Vehicle Loan Financing. 2010

IDBI Bank has opened its first overseas branch at the Dubai International Financial Centre.

Source: Dion Global Solutions Limited

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Chapter 6

CANARA BANK

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Canara Bank

Type Public (BSE : 532483 , NSE : CANBK )

Industry Banking , Financial services

Founded Canara Bank Hindu Permanent Fund (1906) Canara Bank Ltd (1910) Canara Bank (1969)

Headquarters Bangalore , Karnataka , India

Key people Rajiv Kishore Dubey (CMD) BANK FACTS Products Investment Banking - Consumer Banking CANA Commercial Banking RA Retail Banking BANK Private Banking Asset Management Registe red Pensions Addres Mortgages s 112, J C Road, Credit Cards Bangalo re Revenue 339.2 billion (US$6.17 billion) Karnata (2012) ka 560002 Net income 33.41 billion (US$608.06 million) Tel: (2012) 080- Total assets 3.794 trillion (US$69.05 billion) (2012) CXIV

Employees 44,090 (2012)

Website Canarabank.in 2238185 080-22100250 Fax: 080-2233573 080-22248831 Email: [email protected] Website: http://www.canarabank.com Group: Public Sector

Registrars Karvy Computershare Private Ltd. "Karvy House" 46, Avenue 4, Street No. 1, Hyderabad - 500034 Andhra Pradesh Tel: 040-23312454, 23320251/751/752 Fax: 040-23311968 Email: [email protected] Website: http://www.karvy.com

Bank Background - Canara Bank

Industry Name: Finance - Banks - Public Sector

House Name: Public Sector

Collaborative Country Name: N.A.

Joint Sector Name: N.A.

Year of Incorporation: N.A.

Year of Commercial Production: N.A.

LISTING INFORMATION

Face Value of Equity Shares: 10

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Market Lot of Equity Shares: 1

BSE Code: 532483

NSE Code: CANBK

BSE Group: A

Canara Bank is an Indian bank headquartered in Bangalore, Karnataka . It was established in 1906, making it one of the oldest banks in the country. As of December 2011, the bank had a network of 3564 branches and 4000 ATMs spread across India. The bank also has offices abroad in London , Hong Kong , Moscow , Shanghai , Doha , and Dubai . Widely known for customer centricity, Canara Bank was founded in 1906 by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, at Mangalore , then a small port in Karnataka. The bank was national sated in 1969. In 2006, the bank completed a century of operation in the Indian banking industry. Today, Canara Bank occupies a premier position in the comity of Indian banks with an unbroken record of profits since its inception. Canara Bank was ranked at 816 in the Forbes Global 2000 list.

♦ Overseas subsidiaries, branches and offices

Canara Bank established its International Division in 1976. In 1983, Canara Bank opened its first overseas office, a branch in London. Two years later, Canara Bank established a subsidiary in Hong Kong, Indo Hong Kong International Finance. In 2008-9, Canara Bank opened its third foreign operation, this one a branch in Shanghai. Later Canara Bank established a branch each in Leicester and Bahrain, and converted its Hong Kong subsidiary into a branch. It also has a representative office in Sharjah. Together with State Bank of

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India, Canara Bank established a joint venture in Moscow, Commercial Bank of India LLC.

Canara Bank provides the General Manager and the branch managers for Al Razouki Intl Exchange Co (LLC), which a number of business leaders and Non-Resident Indians (NRIs) established in 1981 into the United Arab Emirates to facilitate remittances to India by tourists and NRIs.

Since 1983, Canara Bank has been responsible for the management of Eastern Exchange Establishment, Doha, Qatar, which Abdul Rahman M.M. Al Muftah had established in 1979.

Subsidiary companies 1. Canfin Homes Limited 2. Canbank Factors Limited 3. Canbank Venture Capital Fund Limited 4. Canbank Computer Services Limited 5. Canara Bank Securities Limited 6. Canara Robeco Asset Management Company Limited 7. Canbank Financial Services Limited 8. Canara HSBC Oriental Life Insurance Company Limited

Regional rural banks

Canara Bank sponsors three regional rural banks (RRB).Shreyas Gramin Bank - Canara Bank is a sponsor of this bank, which came about with the amalgamation on 1 June 2006 after amalgamation of three RRBs, Aligarh Gramin Bank, Etah Gramin Bank & Jamuna Gramin Bank.

South Malabar Gramin Bank - is the largest RRB in India. Its headquarters are at Malappuram and it operates in

CXVII eight districts in Kerala. It was established in 1976 as a Scheduled Commercial Bank.

Pragathi Gramin Bank has its headquarters at Bellary, Karnataka, and has 405 branches spread over seven districts. Canara bank is a state level lead bank in Kerala.

Development projects

Canara Bank partnered with UNEP to initiate a solar loan program. It was a four-year $7.6 million effort, launched in April 2003, to help accelerate the market for financing solar home systems in southern India.

Major IT initiative

Canara Bank had a major IT initiative to network all branches and move them to a single software platform. Canara Bank chose Flexcube from Oracle Financial Services Software as the application. The Bank entered into an agreement with IBM for rolling out flexcube to over 1000 branches as part of Phase I. This phase has just been concluded, with Karaikudi Branch in Tamil Nadu being the 1000th branch to go live. Over 22 million customers are benefiting from this initiative. In March 2009 IT Examiner published reports of major problems with the flexcube implementation. Now, all the branches of Canara Bank are live on core banking application Flex cube.

Founding principles

To remove superstition and ignorance.

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To spread education among all to sub-serve the first principle. To inculcate the habit of thrift and savings. To transform the financial institution not only as the financial heart of the community but the social heart as well. To assist the needy. To work with sense of service and dedication. To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings

♦ History of canera bank

Logo of Canara bank

Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent Fund in Mangalore, India, on 1 July 1906. The bank changed its name to Canara Bank Limited in 1910 when it incorporated.

In 1958, the Reserve Bank of India ordered Canara Bank to acquire G. Raghumathmul Bank, in Hyderabad. This bank

CXIX had been established in 1870, and had converted to a limited company in 1925. At the time of the acquisition G. Raghumathmul Bank had five branches.

The Government of India nationalized Canara Bank, along with 13 other major commercial banks of India, on 19 July 1969. In 1976, Canara Bank inaugurated its 1000th branch. In 1985, Canara Bank acquired Lakshmi Commercial Bank in a rescue. This brought Canara Bank some 230 branches in northern India.

In 1996 Canara Bank became the first Indian Bank to get ISO certification for “Total Branch Banking” for its Seshadripuram branch in Bangalore. Canara Bank has now stopped opting for ISO certification of branches. The Bank is a Government of India undertaking, and carries on all banking business. The Bank was brought into existence by an ordinance passed on the 19th July 1969 by the Central Government. In terms of the ordinance the undertaking of the Canara Bank Ltd was vested to and transferred to the new bank. This ordinance was replaced by the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1969. This Act was declared null & void by the Supreme Court on the 10th of February 1970 and subsequently the Ordinance was promulgated. Then the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 was passed and it was made effective retrospectively from 19th July 1969.

2000 1. Canara Bank has launched its gold deposit scheme in Bangalore, offering 3-3.5 per cent interest on the deposits.

2. The Canara Bank and Bank of India have evinced interest to provide loan to the Rs 6,500 crore joint venture Bharat Oman Refineries project in Madhya Pradesh.

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3. Public Sector Canara Bank has hiked prime lending rate and MTLR to 12.25 percent from 11.75 percent and 12 percent respectively with effect from 10th August.

4. The Bank came up with a vanilla bonds issue of Rs 300 crore to increase the tier-II capital before September 30.

5. Bangalore - based Canara Bank has set up four corporate service branches in Bangalore, Mumbai, Delhi and Chennai and is likely to covert more branches for specialised services. 6. Canara Bank, the 100 per cent government-owned public sector bank will be roping in an overseas joint venture partner for its mutual fund subsidiary in the next three months.

7. Canara Bank has entered into an agreement with the Al Mirza group in Oman for opening an exchange house that will be managed by officers deputed by the bank.

2001 A. Canbank Factors Ltd., a subsidiary of Canara Bank, has opened its eighth branch in New Delhi.

B. The Public Sector Canara Bank has entered into an arrangement with the Infrastructure Development Finance Company for financing core sector projects.

2002 1. Launches Laghu Udhyami Credit Card to give its small borrowers credit facilities.

2. Reduces interest rates on NRE and domestic term deposits.

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3. Launches 3 ATMs at Nanganallur, Annanagar and Valmikinagar of Tamil Nadu.

4. Eight Regional Rural Banks (RRBs) sponsored by Canara Bank report total business of Rs 4,030 crore.

5. Launches 'Anywhere Banking' facility in Hyderabad making it the fifth city in the country to have the facility in addition to Bangalore, Mumbai, Delhi, and Kolkata & Chennai

2003 1. Launches a new credit scheme to encourage solar home lighting systems in Karnataka with assistance from the United Nations Environment Programme (UNEP)

2. Ties up with Aviva Life Insurance Company to act as Corporate Agent for selling the Life Insurance products of AVIVA without risk participation

3. Issues Tier II Capital (Unsecured Redeemable Non- Convertible Subordinated Bonds) aggregating Rs 400 crore.

4. Launches a floating rate deposit scheme (FRDS) for high net worth individuals.

5. Tops the recovery list of Non Performing Assets (NPA) among nationalised banks.

6. Canara Bank, Central Bank of India (CBI), Indian Overseas Bank (IOB), UCO Bank and Union Bank of India (UBI) form an alliance to launch `Cash Online' ATM network

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7. Eicher Tractors sign MoU with Canara Bank for providing financing solution to farmers buying Eicher Tractors and other farm implements

8. Canara Bank along with Central Bank of India (CBI) , Indian Overseas Bank (IOB), UCO Bank and Union Bank of India (UBI) have formed an alliance to launch `Cash Online' ATM network.

9. Canara Bank has signed a memorandum of understanding (MoU) with the Small Industries Development Bank of India (SIDBI) for co-financing small-scale industries, service sector and for undertaking related infrastructure projects.

2004 1. Central Government nominates Smt Supriya Pattnaik, General Manager, Reserve Bank of India, as a Director on the Board of Directors of the Bank with immediate effect in place of Shri C S Murthy.

2. Canara Bank enters into strategic tie-up with Western Union and its primary agent AFL WIZ.

3. Introduces a loan scheme for individuals to subscribe to initial public offers at five cities - Bangalore, Chennai, Kolkata, Delhi and Mumbai - with an aim to cater to the needs of retail investors.

4. Canara Bank has announced the launch of a housing loan scheme designed exclusively for the employees of the Kerala Water Authority (KWA).

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5. Canara Bank has entered into a franchise agreement with Western Union Financial Services for money transfer facility.

6. Canara Bank has launched a 'gold card' scheme for exporters, under which it will offer a three-year credit period with an automatic renewal clause, and with competitive interest and charges.

7. Canara Bank, one of the premier Banks in the country has signed a Memorandum of Understanding (MoU) with M/s Kerala Agro Machinery Corporation Limited (KAMCO), one of the largest manufacturers of power tillers.

8. Canara Bank and HDFC Mutual Fund on August 12 signed an agreement for the bank to distribute HDFC's MF products through its network.

9. Canara Bank has informed that the Bank vide agreement dated August 12, 2004 with HDFC Asset Management Company Ltd has entered into a strategic alliance for cross selling of the schemes/products of HDFC Mutual Fund, launched from time to time.

2005 A. Canara Bank inks bank assurance pact with United India Insurance Co Ltd (UIICL).

B. Canara Bank tied up with i-flex Solutions for core-banking project and IBM will be the systems integration partner.

2006

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A. Canara Bank has informed that in exercise of the powers conferred by clause (b) of sub-section (3) of section 9 of the Banking Companies (Acquisition and transfer of Undertakings) Act, 1970 / 1980 read with sub clause (1) of clause 3 of the Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970 - 1980, the Central Government, nominated Shri Amitabh Verma, Joint Secretary (BOA), Ministry of Finance Banking Division, as a Director of the Bank in the place of Shri G C Chaturvedi, vide notification Dated October 31, 2006, with immediate effect and until further orders.

B. Retained Number One Position in Aggregate Business among Nationalized Banks. Signed MoUs for Commissioning Two JVs in Insurance and Asset Management with international major’s viz, HSBC (Asia Pacific) Holding and Robeco Groep N.V respectively.

2007 1. Canara Bank has inked a memorandum of understanding with the ICRA Ltd for credit rating small and medium enterprises. The MoU will facilitate extending comprehensive rating services to all the bank's SME customers. This was especially since Canara Bank was aiming to expand its advances to the sector.

2. Canara Bank has rolled out two new schemes for their High Net worth Individuals - SB Gold (Savings Bank) and Can- Premium Current Account. The schemes offer various services like free debit and credit cards, anywhere banking facility, internet and mobile banking facility with free funds transfer, telebanking and issue of demand drafts at concessional charges, among others. SB Gold scheme, which was first launched in Bangalore last year, has been extended to the bank's customers across the country.

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3. Canara Bank, HSBC Insurance (Asia-Pacific) Holdings and Oriental Bank of Commerce have formally signed agreement to jointly establish life insurance Company in India.

2008 Canara Bank has informed that in exercise of the powers conferred by clause (e) Sub-Section 3 of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, read with sub- clause (2)(a) of clause 9 of the Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970, the Central Government has appointed Shri. Devender Dass Rustagi, Special Assistant, Canara Bank, Recovery Section, Circle Office, Nehru Place, New Delhi as Workmen Employee Director on the Board of Directors of Canara Bank, vide Notification dated September 15, 2008, for a period of three years from the date of Notification or until further orders whichever is earlier.

2009 A. Canara Bank has appointed Shri. Jagdish Pai K L, General Manager, Bank of India as a whole time director (designated as Executive Director) of Canara Bank with effect from the date of his taking over charge and up to June 30, 2011 i.e. the date of his superannuation or until further orders, whichever is earlier, vide notification dated February 04, 2009.

B. Canara Bank has entered into an alliance with Hyundai Motor India Ltd to finance the passenger vehicles manufactured by the company. The bank will extend the finance facility to the buyers through its branches across the country as well as through the 251 Hyundai dealers.

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2010 Canara Bank has nominated Shri Khalid Luqman Bilgrami as part-time non-official Director under Chartered Accountant category, on the Board of Directors of Canara Bank.

Source: Dion Global Solutions Limited

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Chapter 7

Corporation Bank

Corporation bank

Type Public

Traded as BSE : 532179 NSE : CORPBANK

Industry Banking

Founded Udupi , 1906

Headquarters Mangalore , India

Key people Ajai Kumar (Chairman , MD )

Products Loans , Credit Cards , Savings , Investment vehicles, etc.

Website www.corpbank.com

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Corporation Bank

Registered Address Mangaladevi Temple Road, Mangalore Karnataka 575001 Tel: 0824-2426416 Fax: 0824-2421581 0824-2423853 Email: [email protected] Website: http://www.corpbank.in Group: Public Sector

Bank Background - Corporation Bank

Industry Name: Finance - Banks - Public Sector

House Name: Public Sector

Collaborative Country Name: N.A.

Joint Sector Name: N.A.

Year of Incorporation: 1906

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Year of Commercial Production: N.A.

LISTING INFORMATION

Face Value of Equity Shares: 10

Market Lot of Equity Shares: 1

BSE Code: 532179

NSE Code: CORPBANK

BSE Group: A

Corporation is an India-based banking company based in Mangalore , India. The bank has pan-India presence with 6,164 functional units comprising 1500 branches, 1274 ATMs & 3390 branchless banking units as of 31.03.2012.

The total business of the bank during the financial year 2011-12 has been Rs.2, 03,598 crore, as on 31.03.2011. The total deposits have grown to Rs.1, 46,142 crore. Total income of the bank reached Rs.14, 510.40 crore during this period. Operating profit of the bank reached Rs.2, 855.97 crore and net profit reached Rs.1, 506.04 crore.

♦ AWARDS WON

⇒ National Award for Assistance to Exporters from the President of India (1976–77). ⇒ Gem & Jewellery Export Promotion Council Award successively for 5 years from 1981 to 1985. ⇒ Shiromani Award 1992 for Banking from Union Minister for Commerce

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⇒ Best Bank Award for Excellence in Banking Technology from Institute for Development & Research in Banking Technology (IDRBT), Hyderabad (2001). ⇒ Best Bank Award for Innovative Usage and Application on INFINET (Indian Financial Network) from Institute for Development and Research in Banking Technology (IDRBT), Hyderabad (2002). ⇒ Best Bank Award for Delivery Channels from Institute for Development and Research in Banking Technology (IDRBT), Hyderabad (2003). ⇒ Runner-up Awards in the “Best Online and Multi-channel Banking Team” and “Outstanding achiever of the year- corporate” categories in recognition of outstanding achievement in Banking Technology for 2004, instituted under the aegis of Indian Banks Association and Trade Fairs & Conferences International. ⇒ Best PSU Bank of the year by Bloom berg. ⇒ UTV Financial Leadership Award 2011. ⇒ Best Nationalized Bank by Financial Express (Source: Self Advertisement in Hindustan Times, Delhi, Front Page, 02 Apr 2011)

♦ Major recognitions

⇒ One of the Best 200 companies world over outside the United States having a turnover under a billion US$ - Forbes Global, Hong Kong, issue dated 27 October 2003 ⇒ India’s Best Public Sector Bank - Business Today - KPMG Survey dated 7 December 2003 ⇒ India’s Strongest and Asia’s Second Strongest - The Asian Banker, Singapore dated 15 December 2003. ⇒ India’s Best Public Sector Bank - Outlook Money, 15 March 2004

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⇒ One among the Best 200/100 companies in Asia/Pacific and Europe having turnover under a billion US $ - Forbes Global, Hong Kong dated 1 November 2004. ⇒ One among India’s Best Public Sector Banks - Business Today, 26 February 2006.

♦ Products and services

Anywhere banking Corp Convenience International Debit Card Corp International Credit card ASBA facility for IPO Inter Bank Payment Service (IMPS) Corp Money Purse VISA Gift Card Campus Cash card Corp Travel Card Funds Transfer using ATMs Online funds transfer using internet SMS Banking Mobile Banking Internet Banking M-commerce Multi city cheques Online Tax Payment Payment of Income Tax through Corporation Bank ATMs Pay Roll Account Millionnaire RD account Corp Recur Three-in-One account Gold Coins Corp Home-Housing Loan

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Corp Vehicle - Loan for vehicles Corp Vidya - Education Loan Corp Site Loan Corp Personal Loan Corp Consumer Loan Corp Doctor Plus Corp Mortgage - Funds against residential/commercial property Corp Vyapar - Short term credit for traders Corp rental - Finance against future rent receivable Corp Shelter - Reverse mortgage loan for senior citizens Corp Mitra - Personal loans to employees of other companies holding salary accounts with corporation bank Corp Investor Shoppe - Health check up of financial portfolio NRI Services Cash Management Services for corporate Fast Collection Service Corp NewGen SB account

♦ History of corporation bank

Corporation Bank, the oldest banking institution in the erstwhile undivided Dakshina Kannada(Mangalore) District of Karnataka and one of the oldest banks in India, was founded in 12 March 1906 in the Temple Town of Udupi, by a small group of philanthropists led by Khan Bahadur Haji Abdulla Haji Kasim Saheb Bahadur. The need to start this bank was felt because there was no such facility at Udupi, an important trading centre next to Mangalore in D.K. District. The indigenous banking was largely in the hands of a few rich private individuals and something had to be done to provide relief to the common man from the clutches of the money

CXXXIII lenders who held full sway. The first branch of a modern bank established in the district was the Bank of Madras, one of the three Presidency Banks, which set up its office in Mangalore in 1868 largely to cater to the business needs of a few British firms dealing in export of plantation products. Its agent used to visit Udupi once a fortnight or so, to do banking. Money remittances had to be made only through postal medium.

To overcome these drawbacks and also to provide banking facilities for Udupi in particular and the district in general, a cosmopolitan group of philanthropists led by Haji Abdulla Saheb made a bold venture to start this institution. What inspired the founding fathers was the fervour of "Swadeshism". For promoting the Bank, the Founder President made an appeal saying, " The primary object in forming the ‘Corporation' is not only to cultivate habits of thrift amongst all classes of people, without distinction of caste or creed, but also habits of co-operation amongst all classes. This is ‘swadeshism', pure and simple and every lover of the country is expected to come forward and co-operate in achieving the end in view." They rightly defined Swadeshism as institution- building to aid economic activity through co-operation of all, shorn of distinction of caste and creed.

The Canara Banking Corporation (Udupi) Limited, as the institution was called then, started functioning as a Nidhi with a humble beginning. The initial capital was Rs.5000/- and at the end of the first day, its resources stood at 38 Rupees - 13 Annas and 2 Pies. The setting up of the Canara Banking Corporation Ltd. seems to have given a fillip to co-operative Banking and also to regular banking elsewhere in the district. Between 1909 and 1917, six co-operative banks came into being and during the decade immediately after the First World War (1914-18) South Kanara gave birth to as many as eight banks. It is to the credit of this bank that despite two world wars, economic depression

CXXXIV and stiff competition, the bank not only quite survived, but also made satisfactory progress.

Having been started at Udupi, the bank first branched out by opening a branch at Kundapur in 1923. The second branch of the bank was opened in Mangalore at Car Street in 1926. The bank stepped into Kodagu district in 1934 by opening its seventh branch in Madikeri. In 1937, the bank was included in the second schedule of Reserve Bank of India Act, 1934. In 1939, the bank's name changed from "Canara Banking Corporation (Udupi) Ltd." to "Canara Banking Corporation Ltd." The Bank graduated into a Regional Bank in 1945 when the total number of its branches stood at 28. In 1961, it took over ‘Bank of Citizens, Belgaum.' In the same year, the Bank's Administration Office shifted from Udupi to Mangalore.

The second change in the name of the bank occurred in 1972, from Canara Banking Corporation Ltd. to Corporation Bank Limited. The bank was nationalised in 1980 along with 5 other private sector banks. After nationalisation, the pace of growth of the bank accelerated and it made all-round progress. Started as a common man's bank, it changed with the times to meet the aspirations of the people but never swerved from its motto - Sarve Janah Sukhino Bhavantu meaning Prosperity for All. It endeavoured and succeeded in striking a right balance between traditional values and innovative approach, personalised service and professional outlook and commercial considerations and public concern. One of the unique achievements of the bank is that it has been paying dividend continuously for the last 98 years since its inception. Today, with the most modern technology-driven products and services and nationwide branches & ATMs, Corporation Bank stands tall among the Public Sector Banks in India and is hailed as one among the well-managed Public Sector Banks with excellent track record in all the key parameters of banking. The bank has the second largest ATM network in the public sector.

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Corporation Bank had the honour of playing host to many a distinguished personality. During the bank's Platinum Jubilee Celebrations in 1976, the new administrative office building at Pandeshwar Mangalore was opened by Shri B.D.Jatti, the then Vice-President of India. The bronze statue of Pandit Jawaharlal Nehru installed by the bank at the Traffic Island in front of its Corporate Office at Pandeshwar Mangalore, was unveiled by Mr. Justice E.S. Venkataramaiah, the then Chief Justice of India. In 1992, R. Venkataraman, the then President of India, visited the bank to inaugurate its 85th anniversary celebrations and 60th anniversary of the bank's commencement of operation in Tamil Nadu state. In 1996, Mr. Justice A.M.Ahmadi, the then Chief Justice of India, visited the bank to deliver the 90th year commemorative lecture. Corporation Bank House, the new premises of the bank's Car Street Mangalore branch, was inaugurated by Dr. Manmohan Singh, who was then the Union Finance Minister. Dr. C. Rangarajan, the then Governor of Reserve Bank of India, launched the prestigious deposit product Corp Classic during his visit to the bank's corporate office in 1997. The bank's new Millennium Building was inaugurated by Union Minister of State for Finance Vikhe Patil in 2000. In the same year, Union Finance Minister Yashwant Sinha launched the bank's Cowpats product at the Corporate Office.

First Public Sector Bank (other than SBI Associates) to achieve 100% CBS (Core Banking Solutions) developed and implemented by Laser Soft Info systems Limited, Chennai.

1906 The Company was incorporated at Udipi. The Bank transacts banking business of every description. The undertaking of the Corporation Bank Ltd., was taken over by Government by an Ordinance promulgated on 15th April, 1980 viz., Banking Companies (Acquisition and Transfer of Undertakings) Ordinary, 1980 and vested in a new bank under

CXXXVI the name Corporation Bank. The Bank sponsored a RRB under the name The Chikmagalur-Kodagu Grameen Bank.

1996 Total Branch Automation package was launched in 46 branches taking the total number of branches under TBA project to 151.Rs 30, 00, 00,000 returned during the year.

1997 1. The Banks is one of the Co-promoters of a Primary Dealer in Govt. Securities, which has been promoted by Canara Bank viz. Gilt Securities Trading Corporation of India Ltd.

2. 84 branches were provided with Satellite based Communication Networks System (E-Mail taking the total number of branches) with E-Mail connectivity to 219.

3. Corporation Bank has cut its prime lending rate to 13.5 per cent from 14 per cent and will be entering the capital market on September 24 with a public issue of equity shares at the rate of Rs 80 per share which the bank board has considered reasonable at a price to earnings ratio of 5.2 and price to book value of just 1.6.

4. According to Hugar, Corporation Bank is the only bank in the country to set up specialised collection and payment service branches. The first branch has been set up in Bangalore.

5. Corporation Bank is working on a joint venture with National Housing Bank (NHB) to form a housing finance company. The public sector bank last month submitted the proposal to Reserve Bank of India (RBI).

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6. The Reserve Bank of India has in principle approved Mangalore-based Corporation Bank's proposal for setting up a wholly owned housing finance subsidiary.

1998 1) Corporation Bank is setting up a housing finance subsidiary, Corp Bank Homes Ltd, which will be inaugurated on 22nd May in Mangalore.

2) As part of the golden jubilee celebration of India's Independence, Corporation Bank has created two endowments for promotion of education in Dakshina Kannada district.

3) Corporation Bank has entered into a strategic alliance with the Stock Holding Corporation of India Ltd. (SHCIL).

4) Corporation Bank is the first public sector bank to launch the bullion scheme for jewellery exporters following the necessary amendments made by the Maharashtra State Government in the Mumbai Sales Tax Act of 1959.

1999 Close on the heels of having set up a housing finance subsidiary, Corporation Bank has drawn up plants to become a primary dealer in the money markets and has initiated talks with foreign majors for getting into the insurance field as soon as the sector opens up.

Corporation Bank is confident of its subsidiary doing well in the primary dealership firm as the bank has one of the most active treasury departments among public sector banks.

2000

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1) The Bank has entered into a Strategic Business Alliance with Net savvy Solutions Pvt. Ltd., a Chennai-based company, to provide Internet banking facilities to its customers.

2) The Bank has launched its tele-banking facilities called `Corp Dial' at its home city-Mangalore and Udupi in Karnataka.

3) The Bank has become the first public sector bank in the country to adopt US GAAP accounting standards.

4) Chennai-based Laser Soft Info systems Ltd, exclusively focussed on developing software suited to the banking industry, has signed a major contract recently with the Corporation Bank to bring about total branch automation through a unique concept called `cluster banking'. 5) Public Sector Corporation Bank will enter a three way tie- up to foray into the life insurance sector ad has created a separate division within the bank to speed up the entry procedure.

6) Corporation bank chose Chennai for launching its `Any branch banking' product covering the 12 computerised branches in the city.

7) Corporation Bank has launched Corp Access - the bank's any branch banking product at Chennai. 8) SalahkarIndia.com has tied up with Corporation Bank to display its products on the investment site of SalakharIndia.

2001 The State-run Corporation Bank is proposing to introduce demat services on its own to its customers early in the month of March.

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Corporation Bank's house magazine Kshema has won `The best editorial content award 2000' in the all-India house journal competition, organised by Mayarm Surjan Foundation, Rajpur.

2002 The above Directors are deemed to have assumed office with effect from July 25, 2002. The term of office of the above Directors will be three years upto July 24.

2003 1. National Bank for Agriculture and Rural Development (Nabard) and Corporation Bank have signed a MoU for the co-financing of hi-tech agricultural, agro-processing and export-oriented projects. Joint financing by these banks would help accelerate capital formation in rural areas

2. Corporation Bank on March 25, inaugurated 33 new outlets within premises of the Life Insurance Corporation. These service outlets, which includes extension counters and automated teller machines are spread across the states of Punjab, Delhi, Rajasthan, Jharkhand, Orissa, Maharashtra, Goa, Karnataka and Tamil Nadu.

3. Corporation Bank has informed the Exchange that Shri Ramakant Vashishtha, shareholder of the Bank is deemed elected on June 30, 2003 as Director on the Board of Bank, representing the shareholders of the Bank.

4. Corporation Bank has informed that Shri Ramakant Vashishtha, shareholder of the Bank is deemed elected on June 30, 2003 as Director of Board of the Bank, representing shareholders of the Bank.

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5. Corporation Bank has entered into an alliance with ECGC (Export Credit Guarantee Corporation) for a corporate agency tie-up.

2004 1. Corporation Bank signs Memorandum of agreement with Honda Siel Power Products Ltd. to provide easy loans for purchasing Honda power generators

2. Corporation Bank, Tanishq and World Gold Council (WGC) have entered into a tie-up to offer finance scheme to their customers for the purchase of gold jewellery. 3. Corporation Bank has signed a memorandum of understanding with SAME Deutz-Fahr India (P) Ltd for financing its tractors to farmers.

4. Corporation Bank and ICFAI University have signed a memorandum of understanding (MoU) to publish research papers submitted and discussed at the Bank Economists' Conference (BECON) 2002, as books.

5. Corporation Bank has entered into an agreement with the Indian Railway Catering and Tourism Corporation (IRCTC) for online booking of railway tickets.

6. Corporation Bank wins prestigious 'Best Bank Award for Delivery Channels' from the Institute for Development and Research in Banking Technology (IDRBT), sponsored by RBI.

2005 A. Corporation Bank inks agreement with IL&FS Investsmart for offering capital market services to the bank's customers

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B. Corporation Bank gets 'Outstanding Achiever of the Year' award.

C. Corporation Bank to introduce hi-tech products.

2006 Corporation Bank has informed that Shri Ramakant Vashishtha, Shareholders Director on the Board of the Bank has resigned as Director with effect from October 23, 2006.

2007 1) Corporation Bank has joined hands with Mumbai's dabbawallas to source clients for offering banking services.

2) Corporation Bank has entered into Memorandum of Understanding (MOU) with CRISIL Ltd for Rating of Small & Medium Enterprises (SMEs), Small Scale Industries (SSIs) and Facility Rating of corporate as required under BASEL II.

3) Corporation Bank has signed a Memorandum of Understanding with Credit Analysis & Research Ltd (CARE) on December 20, 2007 for assigning credit rating to SME units and also Bank loan rating to existing / prospective customers of the Bank.

2008 Corporation Bank has declared national excellence awards for 21 entrepreneurs comprising of micro, small and medium entrepreneurs and an emerging corporate.

2009

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Corporation Bank has signed MoU with Mahindra & Mahindra (M&M) Ltd and its joint venture company, Mahindra Navistar Automotives Ltd (MNAL), for vehicle finance.

Corporation Bank has inked a pact with TVS Motor Company for financing 'TVS King' (passenger auto-rickshaw). Under the agreement, customers will have to pay 15 per cent of the on-road price to avail themselves of the loan with low interest rate options. 2010 Corporation Bank has informed BSE that in exercise of the powers conferred by clause (c) of sub-section (3) of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980 read with sub-clause (1) of clause 3 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme 1970/1980, the Central Government has nominated Smt. Grace Koshie, as the Director on the Board of the Bank with effect from 30lh July 2010 until further orders, vice Shri M. A. Srinivasan.

♦ 107 years of banking

Corporation Bank completed 107 years of existence on 12 March 2012. On the occasion of 107th Foundation Day celebrations held at TMA Pai Hall in Mangalore, five eminent personalities who made immense contributions to the society were honoured by the bank. They include, Dr. B.M. Hegde, eminent physician, Dr. B. Ramana Rao, eminent cardiologist, Mrs. Ela Bhatt, social entrepreneur and founder of SEWA, Dr. B.R. Shetty, entrepreneur and Dr. Kadri Gopalnath, eminent saxophonist.

A new application for internet banking in iPad was launched on this occasion. A new caller tune for the bank for

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Bank's mobile/landline phones was also inaugurated in the function.

The Centenary celebrations were launched by Shri V. Leeladhar, Deputy Governor, Reserve Bank of India with the Bank's Foundation Day lecture on 12 March 2005.

As a part of the Bank's centenary celebrations, a number of programmes and projects were planned and executed. As a first step, the Bank has launched the Corp Kissan Card - debit card tied up with VISA international, to enable the farmers make timely purchases for agricultural operations.at Yeshwantpur-Malur in Kolar District on 13 March 2005. A modern public library was dedicated to the citizens of Mangalore in DK District, the birthplace of the Bank by Shri P. Chidambaram, Hon'ble Union Finance Minister on 2 March 2006. The library building also houses a Numismatic Museum and a multipurpose hall for intellectual activities. The Bank has also set up libraries in 25 villages and given away scholarship to 100 meritorious students of such villages for the pursuit of their higher education. Such libraries will be set up in 75 more villages in a phased manner. Corporation Bank - A Corporate Journey, the history of the Bank and Haji Abdullah Saheb a biography of the Bank's Founder President have been published on the occasion of the valedictory function of the Bank's Centenary Celebrations

Source: Dion Global Solutions Limited

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BIBLOGRAPHAY

Gopal, Madan (1994) "The Nation's Bankers". Dyal Singh Majithia . New Delhi: Publ. Div., Ministry of Information and Broadcasting, Gov. of India.

Tandon, Prakash (1989). Banking century: a short history of banking in India & the pioneer, Punjab National Bank . New Delhi, India: Viking.

Kaptan, S.S, (2003) “Indian Banking in the Electronic Era” Published by SAROP & SONS, New Delhi.

Desai Vasant, (2005) “Indian Financial System” Himalaya Publishing House.

Tannan, M.L, (2002), “Banking Law and Practice in India”, Indian Law house, Delhi.

Demetriades and Luinted, (1997) “Reports on Trends and Progress of Banking in India- RBI.”

Narendra Jadhav, (1996) “Challenges to Indian Banking Published by Macmillan India Limited.

Dr. Bhattacharyya. M. and Agarwal, O.P. (2006 ), “Basics of Banking and Finance Published by Himalaya Publishing House, Delhi

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Nitin Bhasin, (2006), “ Banking Development in India” (1947- 2007), new century Publication, New Delhi.

Satish Munjal (1992),” Banking law and practice” RBSA publishers-sms highway Jaipur-3.

Tripathi, Dwijendra and Priti Misra (1985). Towards a New Frontier: History of the Bank of Baroda, 1908–1983 . (New Delhi, India: Manohar).

Kneale, Klaus (6 May 2009). "World's Most Reputable Companies: The Rankings". Forbes . Retrieved 20 August 2010.

Economic Times (26 August 2010). "State Bank of Indore branches to become SBI units from Aug 26: SBI" The Times of India .

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