ANNUAL REPORT 2018-19 ¢¨¸«¸¡¸¬¸»¸ú Index ¢¨¸«¸¡¸ œ¸¼«“ Contents Page ‚š¡¸®¸ ˆÅ¸ ¬¸¿™½©¸ 06 Chairman’s Statement 08 œÏ¤¸¿š¸ ¢›¸™½©¸ˆÅ ‡¨¸¿ Ÿ¸º‰¡¸ ˆÅ¸¡¸Äœ¸¸¥¸ˆÅ ‚¢š¸ˆÅ¸£ú ˆÅ¸ ¨¸Æ÷¸¨¡¸ 10 MD & CEO’s Statement 14 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä 18 Directors’ Report 41 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½Ä›¬¸ œ¸£ ¥¸½‰¸¸ œ¸£ú®¸ˆÅ¸½¿ ˆÅ¸ œÏŸ¸¸μ¸-œ¸°¸ 63 Auditors’ Certificate on Corproate Goveranance 63 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½Ä›¬¸ ¢£œ¸¸½’Ä 65 Corporate Governance Report 65 ‡Ÿ¸”ú ¨¸ ¬¸úƒÄ‚¸½ ׸£¸ ‹¸¸½«¸μ¸¸ 101 Declaration by MD & CEO 101 ¬¸¢¸¨¸¸¥¸¡¸ ¥¸½‰¸¸œ¸£ú®¸¸ ¢£œ¸¸½’Ä 102 Secretarial Audit Report 102 Ÿ¸í÷¨¸œ¸»μ¸Ä ¢¨¸î¸ú¡¸ ¬¸»¸ˆÅ 105 Key Financial Indicators 105 ÷¸º¥¸›¸ œ¸°¸ 108 Balance Sheet 108 ¥¸¸ž¸ ¨¸ í¸¢›¸ ‰¸¸÷¸¸ 109 Profit & Loss Account 109 Ÿ¸í÷¨¸œ¸»μ¸Ä ¥¸½‰¸¸ ›¸ú¢÷¸¡¸¸¿ 120 Significant Accounting Policies 120 ›¸ˆÅ™ú-œÏ¨¸¸í ¢¨¸¨¸£μ¸ 188 Cash Flow Statement 188 ¥¸½‰¸¸ œ¸£ú®¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä 190 Auditors’ Report 190 ‚œ¸¹£¨¸¹÷¸Ä÷¸ ‚¹ž¸Ÿ¸÷¸ ¬¸¹í÷¸ ¥¸½‰¸¸œ¸£ú®¸¸ ¹£œ¸¸½’Ä ˆÅú ‹¸¸½«¸μ¸¸ 198 Declaration of Unmodififed Opinion 198 ¬¸úƒÄ‚¸½ / ¬¸ú‡œ¸€‚¸½ œÏŸ¸¸μ¸úˆÅ£μ¸ 199 CEO / CFO Certification 199 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£¢μ¸¡¸¸¿ 200 Consolidated Financial Statement 200 ‚œ¸¹£¨¸¹÷¸Ä÷¸ ‚¹ž¸Ÿ¸÷¸ ¬¸¹í÷¸ ¥¸½‰¸¸œ¸£ú®¸¸ ¹£œ¸¸½’Ä ˆÅú ‹¸¸½«¸μ¸¸ 248 Declaration of Unmodififed Opinion - Consolidated 248 - ¬¸Ÿ¸½¢ˆÅ÷¸ ¬¸úƒÄ‚¸½ / ¬¸ú‡œ¸€‚¸½ œÏŸ¸¸μ¸úˆÅ£μ¸ 249 CEO / CFO Certification 249 ¥¸¸ž¸¸¿©¸ ¬¸¿¢¨¸÷¸£μ¸ ›¸ú¢÷¸ 250 Dividend Distribution Policy 250 ¤¸¸¬¸½¥¸ III œÏˆÅ’úˆÅ£μ¸ 252 Basel III Disclosures 252 ›¸¸½¢’¬¸ 253 Notice 253 œÏ¸ÁƬ¸ú ûŸÁŸ¸Ä 271 Proxy Form 271 í¢£÷¸ œ¸í¥¸ - ©¸½¡¸£š¸¸£ˆÅ¸½¿ ¬¸½ ‚œ¸ú¥¸ 273 Green Initiative Appeal 273 1 8,60,00,000+ ~H$¢ Am° µ\$ ~µSmXm-EH$¡ PbH$ J«mhH$ BANK OF BARODA AT A GLANCE Customers 55,754 H$_©Mmar Employees 5,553 Kaobw emImE§ Domestic Branches 100 {dXoer emImE§ 21 Xoemo¨ _¨o Overseas Branches in 21 countries 9,572 EQ>rE_ Ed§ H¡ e [agmB³bg© ATMs and Cash Recyclers 15,356 ì`dgm` à{Ëm{Z{Y AmCQ>boQ²g Business Correspondent Outlets ` 12,690 Cr. {dÎmr` g_mdoeZ Ho$ VhV Hw b O_mam{e`m¨ Total Deposits amounting to Financial Inclusion 40.23% H mgm AZwnmV CASA Ratio 20.4% {Zdb ã`mO Am` _| df©-Xa-df© d¥{Õ Year-on-Year Growth in Net Interest Income 12.3% n{aMmbZ bm^ _| df© Xa-df© d¥{Õ Year-on-Year Growth in Operating Profit 13.42% nyOr§ n`m©áVm AZwnmV (~mgob &&&) 31 2019 Capital Adequacy Ratio (Basel III) g^r AmH§ ‹So [XZm§H _mM©, H m.o All data as on March 31, 2019. ãmohVa go ãmhVarZo ~¢{H§$J godma{hV Ed§ d§{MV dJm] H$m ge{º$H$aU EMPOWERING THE UNBANKED AND THE UNDERPRIVILEGED ~¢H$ `h _mZVm h¡ {H$ ^maV Ho$ {dH$mg Ho$ {bE {dÎmr` g_mdoeZ An{ahm`© h¡. The Bank believes that financial inclusion is a sine qua non for g^r dJm] H$mo ~¢{H§$J gw{dYmE§ CnbãY H$amZo H$s h_mar ì`mnH$ aUZr{V Ho$ India’s growth. Our comprehensive strategy for making banking VhV g_mO Ho$ ~¢{H§$J godma{hV Ed§ d§{MV dJm] H$mo godm àXmZ H$aZo Ho$ {bE solutions accessible to all includes deepening our reach through a network of semi-urban & rural branches, Business Correspond- AY©-ehar Ed§ J«m_rU emImAm|, ì`dgm` à{V{Z{Y`m|, {S>{OQ>b M¡Zbm| Ed§ ents, digital channels and ATMs with a customised suite of {d{eï> gw{dYm`wº$ EQ>rE_ _erZm| Ho$ {dñV¥V ZoQ>dH©$ Ho$ _mÜ`_ go h_mar nhw±M offerings for the unbanked and marginalised sections of society. H$mo ~‹T>mZm em{_b h¡. ~¢H$ Z Ho$db {dÎmr` gmjaVm àXmZ H$a ahm h¡ ~{ëH$ The Bank not only imparts financial literacy training but also J«m_rU AW©ì`dñWm H$mo godmE§ àXmZ H$aZo, gw{dYma{hV `wdmAm| Ho$ H$m¡eb focuses on developing an ecosystem of alliances and partner- {dH$mg Am¡a {H$gmZm| H$s Am` _| d¥{Ó hoVw ZE CËnmXm| Ed§ ßboQ>\$m°_© CnbãY ships to launch products and platforms for serving the rural H$amZo Ho$ {bE AnZo gmPoXmam| Am¡a ^mJrXmam| Ho$ ~rM gh`moJ ~‹T>mZo hoVw economy, skilling underprivileged youth and enhancing the income of farmers. AZwHy$b dmVmdaU Ho$ {Z_m©U na ^r Ü`mZ Ho${ÝÐV H$a ahm h¡. 61.07% 49 51 Baroda Swarojgar Vikas Sansthan Financial Literacy & Branches in Semi-Urban & (BSVS) & RSETI Centres Credit Counseling Rural Areas in Seven States Centres (FLCCs) in Eight States `12,690 Cr. `1,47,109 Cr. 2,38,974 Total Deposits in Farmers benefitted from Priority Sector Advances Financial Inclusion Accounts 8,018 choupals, 1,621 Kisan ( As of March 31, 2019 ) (10.7% share in A/cs, 12% in deposits) Melas, 339 Health Camps etc. BEHTAR SE BEHTAREEN gyú_, bKw Am¡a _Ü`_ CÚ_m| H$m ge{º$H$aU EMPOWERING MICRO, SMALL AND MEDIUM ENTERPRISES ~¢H$ `h _mZVm h¡ {H$ ^maVr` AW©ì`dñWm Ho$ {dH$mg H$mo J{V àXmZ H$aZo _| The Bank believes that MSMEs are the primary growth drivers of g~go _hËdnyU© `moJXmZ gyú_, bKw Am¡a _Ü`_ CÚ_m| H$m h¡ Am¡a Bg{bE ~¢H$ the Indian economy and has taken multiple initiatives to service Zo BZ CÚ_m| H$s {dÎmr` Ed§ boZXoZ Oê$aVm| H$mo nyam H$aZo Ho$ {bE H$B© nhb| their financing and transaction needs. We have 42 dedicated ‘SME H$s h¢. ~mOma na Ü`mZ Ho${ÝÐV H$aZo Ho$ Ñ{ïH$moU Ho$ gmW E_EgE_B© goJ_|Q> loan factories’ with specialised sales and loan processing teams H$mo godm àXmZ H$aZo Ho$ {bE ~¢H$ Ho$ nmg {deofkVm àmá goëg Ed§ bmoZ to service the MSME segment with a target market approach. To 42 “ ” àmogo{g§J Q>r_ g_{W©V- - g_{n©V EgE_B© emImE§ EgE_B© bmoZ \¡$ŠQ—>r improve the efficiency of service delivery, Bank has centralized h¢. godm àXmZ H$aZo _| H$m`©XjVm H$mo ~ohVa ~ZmZo H$s Ñ{ï go ~¢H$ Zo _wå~B© Ed§ MSME loan processing, approval, disbursal and monitoring at {Xëbr _| E_EgE_B© g§~§Yr G$U à{H«$`m, AZw_moXZ, g§{dVaU Ed§ _m{ZQ>{a§J H$mo H|$ÐrH¥$V {H$`m h¡ Am¡a Bgo AÝ` H|$Ðm| na ^r bmJy H$aZo H$s ~¢H$ H$s `moOZm Mumbai and Delhi and has plans to roll it out at other centers. h¡. h_mar Hw$N _hËdnyU© nhbm| _| {g{~b E_EgE_B© a¢H$ (grE_Ama) go g§~Ó Some of our other key initiatives include introducing Risk Based E_EgE_B© G$Um| hoVw Omo{I_ AmYm{aV _yë`-{ZYm©aU H$m àma§^, nyU©V`m Pricing for MSME loans linked with CIBIL MSME Rank (CMR), {S>{‹OQ>mB‹ÁS> gßbm` MoZ \$mBZ|{g§J ßboQ>\$m°_© H$m Ama§^, doë`y MoZ {dÎmnmofU launching a fully digitised supply chain financing platform, value H$m`©H«$_ H$m àma§^, {\$ZQo>H$ ßbo`am| Ho$ gmW Q>mB©An, ì`dgm` gmPoXmam| Ho$ chain financing programme, tie-ups with Fintech players, gmW G$Um| H$m g_Ýd`, H$m|Q¡>ŠQ>bog G$U ßboQ>\$m°_© - www.psbloan- co-origination of loans with business partners, leveraging the sin59minutes.com/bob H$m Cn`moJ, OrEgQ>r àm{á`m| Ho$ noQo> {dÎmnmofU, Contactless Loan Platform - www.psbloansin59minutes.com/bob, _wÐm `moOZm Ho$ VhV G$U Am{X H$m g_mdoe h¡. ~¢H$ Q—o>S> {agrdo~ëg financing against GST receivables, credit under the MUDRA etc,. B©boŠQ>´m°{ZH$ {S>ñH$mC§Q> {gñQ>_ (Q>rAmaAmB©S>rEg) Ho$ VhV bm°ÝM hwE VrZm| The Bank was first to onboard on all the three Trade Receivables ßboQ>\$m°_© na H$m`© àma§^ H$aZo dmbm àW_ ~¢H$ ahm h¡. electronic Discount System (TReDS) platforms. `6,023 Cr. `1,154 Cr. Specialised Scheme Loan Amount under Loan Amount under for Financing aganist GST MUDRA Scheme Stand-up India Scheme Receivables 1st Rank `1,888 Cr. 13% amongst PSBs Sanctioned out of which Market Share for Sanctions 55% is online in no. of Accounts ãmohVa go ãmhVarZo {S>{OQ>mBOoeZ H$s j_Vm H$m gXwn`moJ LEVERAGING THE POWER OF DIGITISATION ~¢H$ H$m _mZZm h¡ {H$ {S>{OQ>b _mÜ`_ hr {dÎmr` godmAm| H$m ^{dî` h¡. ~¢H$ Ho$ The Bank believes that the future of the financial services will be nmg {S>{OQ>b _mÜ`_m| _| boZXoZ H$mo gj_ ~ZmZo hoVw EH$ ì`mnH$ {S>{OQ>b digital. The Bank has a comprehensive digital strategy which H$m`©Zr{V h¡ {OZ_| \«§$Q> E§S> Am¡a ~¡H$-E§S> XmoZm| em{_b h¢. h_ AnZo J«mhH$m| encompasses both the front-end and the back-end to enable the H$mo AË`mYw{ZH$ gw{dYmE§ àXmZ H$aZo Ho$ {bE Z Ho$db AnZo _mÜ`_m| H$m migration of transactions to digital channels. We are not only g§dY©Z H$a aho h¢ Am¡a {deofê$n go V¡`ma CËnmXm|ã H$smohVa ewê$AmV H$a aho goh¢, ãaugmentingmhVarZo our channels and launching customised products to ~{ëH$ Ëd{aV Am¡a à^mdr n{aMmbZ hoVw AnZo ßboQ>\$m°_© Am¡a n{aMmbZ provide state-of-the-art digital experiences to customers but also upgrading our operating processes and platforms to enable us to à{H«$`mAm| H$mo AnJ«oS> ^r H$a aho h¢.