DECLARATION

We hereby declare that the project work entitled BANKING OPERATIONS submitted to IMI,Bubaneswar, is a record of an original work done by us under the guidance of Dr.P.K.Dash of Operations Management,IMI Bhubaneswar. The results embodied in this thesis have not been submitted to any other University or Institute for the award of any degree or diploma.

Date: 16.12.2011

ACKNOWLEDGEMENT

We have taken efforts in this case study. However, it would not have been possible without the kind support and help of many individuals. We would like to extend my sincere thanks to all of them. Firstly,we would like to thank IMI Bhubaneswar for giving us this opportunity to do this analysis.We would like to thank Dr.P.K.Dash for his support and guidance. We would like to thank all the people who have directly or indirectly helped in completing this work.

Competitive strategy of Bank of Baroda Bank of Baroda is a pioneer in various customer centric initiatives in the Indian banking sector. Bank is amongst first in the industry to complete an all-inclusive rebranding exercise wherein various novel customer centric initiatives were undertaken along with the change of logo. The initiatives include setting up of specialized NRI Branches, Gen-Next Branches and Retail Loan Factories/ SME Loan Factories with an assembly line approach of processing loans for speedy disbursal of loans. Its competitive strategy mainly focuses on the following initiativesCustomized product base-its main goal is to achieve customer satisfaction by serving all kinds of customers. It has a pool of both the customized and standardized products that suits the requirement of all customers. Their main aim is to create customer loyalty by providing best services to them. People initiatives- the most important asset of the bank is its competent and motivated employee base which is engaged in handling the complex business operations of the Bank across the globe. It also provides extensive training to its employee which help them to work cross border and also expose them to cross culture work. It also builds technical competencies of its people by imparting conceptual, managerial and leadership skills which gave the Bank a competitive advantage. Innovation and new technology- bank has taken various initiatives in this context. Bank has been providing to its customers Internet Banking, viz., Baroda Connect and other facilities such as online payment of direct and indirect taxes and certain State Government taxes, utility bills, rail tickets, online shopping, donation to temples and institutional fee payment. Bank has a wide network of ATMs across the country and has also launched mobile ATMs in select cities. Initiatives have been taken to provide corporate customers with facilities like direct salary upload, trade finance and State Tax payments etc. Bank has introduced Mobile Banking (Baroda M-connect) and prepaid gift cards.

LOCATIONAL FACTOR Proximity to customers-it should be located at such a place from where all the customers can be served easily and effectively. An easy access to the bank helps in creating a large pool of customers. There are instances where more than 3 branches of bank of Baroda are located in the same area due to high rate of customer visits. Business climate- banks mainly focuses on those areas in which development trend is experiencing a rising curve. The banks have an advantage in opening up branches in those areas where the business is flourishing as the customer base increases due to the employees working other organizations as well as the people visiting those organizations. Total cost Banks decide to set up in those areas in which regional cost, in bound distribution cost and outbound distribution cost are lowest. Regional cost mainly includes land, construction, labour, taxes and energy.Since, profitability of the banks relies mainly on the deposits which come from the customers, so,the setting up cost plays a crucial role here. And for this reason, bank of Baroda has established six branches in Bhubaneswar. Infrastructure It includes cost of transportation, telecommunication & power energy. In addition, the local governments willingness to invest in the infrastructure required by the banks is another incentive to select a specific location. Other facilities-The location of other branches of the same bank may influence a new facilitys location in the network.Isuues of capacity layout are strongly interconnected to the location decision in this context.

CUSTOMER STAFF RATIO Customer staff ratio is defined as the ratio of customers to staff in help desk environment. Establishing the proper support staff to customer ratio is essential for any organization. However bank of Baroda doest follow this ratio. Its employees are mainly recruited on the basis of job requirements and the new skills and abilities that a specific job demands which in turn increases the productivity as it avoids labor surplus. PARAMETERS OF OPENING OF NEW OFFICE OR BRANCH As per the RBI guidelines, these are the parameters that bank of Baroda follows while setting up a new branch or officeBanks may note that for opening of rural branches approval of District Consultative Committee (DCC) is not required. Further, banks are encouraged to open branches in under banked districts and rural centers. In order to ensure even spread of banking in the under banked districts, it has been decided that proposals submitted by banks for opening of branches in under banked districts would be considered provided that the location of the proposed branch is not: (a) Within the municipal limits of State Capital, a Metropolitan Centre or a District Headquarters and (b) Within 100 kms from the 4 major Metropolitan Centers (Mumbai, New Delhi, Kolkata and Chennai) and 50 kms from a State Capital. However, the above restrictions at (a) and (b) will not be applicable in cases where the location of the proposed branch is in the State of Jammu & Kashmir or any of the 7 North Eastern States viz., Arunachal Pradesh ,Assam, Manipur, Meghalaya ,Mizoram,Nagaland and Tripura. Notwithstanding the provisions as indicated above, RBI would consider on a case-by-case basis, proposals from banks for opening branches at centers located within under banked districts which fall within the category of (a) and (b) above, provided the bank is able to satisfy RBI that the location of the proposed branch is really under banked.