About Bank of Baroda

Bank of Baroda is one of the leading commercial public sector banks in India. The Bank's solutions includes personal banking, which includes deposits, gen-next services, retail loans, credit cards, debit cards, services and lockers; business banking, which includes deposits, loans and advances, services and lockers; corporate banking, which includes wholesale banking, deposits, loans and advances and services, and international business, which includes non-resident Indian (NRI) services, foreign currency credits, ECB, offshore banking, export finance, import finance, correspondent banking, trade finance and international treasury. The Bank offers services, such as domestic operations and For-ex operations. They also offer rural banking services, which include deposits, priority sector advances, remittance, collection services, pension and lockers. They also offer fee-based services such as cash management and remittance services. The Bank is having their head office located at Baroda and their corporate office is located at Mumbai. Bank of Baroda is one of India's largest banks and as on December 2020, the bank has a strong domestic presence spanning 8,246 domestic branches and 11,553 ATMs & Cash Recyclers supported by self-service channels. The bank has a significant international presence with a network of 99 overseas branches/offices subsidiaries, spanning 21 countries. The bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.) and BOB Capital Markets. Bank of Baroda also has a joint venture for life insurance business with India First Life Insurance. The bank owns 98.57% in The Nainital Bank. The bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank. Bank of Baroda was incorporated on July 20, 1908 as a as a private bank with the name The Bank of Baroda Ltd. The Bank was established with a paid up capital of Rs 1 million and was founded by Maharaja Sayajirao III of Baroda. In the year 1910, the Bank opened their first branch in the city of Ahmedabad. In the year 1919, they opened their first branch in Mumbai City. In the year 1953, the Bank opened first international branch at Mombasa, Kenya. During the period 1953-1969, the Bank opened three branches in Fiji, five branches in Kenya, three branches in Uganda and one each in London and Guyana. In the year 1958, The Hind Bank merged with the Bank and in the year 1962, The New Citizen Bank Ltd amalgamated with the Bank. In the year 1964, The Umargaon Peoples' Bank & Tamilnadu Central Bank amalgamated with the Bank. In July 1969, the Bank was nationalized and the name was changed from 'The Bank of Baroda Ltd' to 'Bank of Baroda'. During the period 1969 to 1974, they established three branches in Mauritius, two branches in UK and one branch in Fiji. They entered in the oil rich Gulf countries in the year 1974 with two branches were opened in UAE, one at Dubai and another at Abu Dhabi. In the year 1976, the Bank sponsored the first of their 19 Regional Rural Banks thereby seeking to complement their operations in rural heartland. In the year 1977, they launched the 'Gram Vikas Kendra' (GVK), an innovative model for integrated rural development. In the year 1984, the Bank launched their Credit Card Operations. In the year 1988, The Traders Bank Ltd amalgamated with the Bank. In the year 1991, the Bank established their housing finance subsidiary, BOB Housing. They also established subsidiaries for businesses of credit cards (BOBCARDS), asset management (BOB AMC) and capital market activities (BOB Caps). In December 1996, the Bank entered the capital market with an Initial Public Offering. In the year 1997, they opened a branch in Durban. In the year 1999, the Bank commenced operations as a depository. Also, Bareilly Corporation Bank amalgamated with the Bank during the year. In the year 2000, the Bank appointed Arthur Andersen India Pvt Ltd as risk management consultant for setting up Comprehensive Risk Management Architecture for the Bank. In the year 2001, they established a separate Risk Management Department and specialized integrated treasury branch. In the year 2002, The Benares State Bank Ltd merged with the Bank. They launched Debit Card project in affiliation with VISA. In the year 2004, The South Gujarat Local Area Bank amalgamated with the Bank. In June 1, 2004, the Bank signed a MoU with National Insurance Company Ltd for selling their non life insurance products under corporate agency arrangement. During the year 2004-05, the Bank expanded their interconnected ATM network to cross 501, spread over 180 centres in the country. The bank also introduced 8AM to 8PM banking at 101 branches and 24-Hour banking at 5 branches in the country. They launched the IT Enabled Business Transformation Program and signed the contract with Hewlett Packard. They launched Multicity cheque facility. In the year 2006, the Bank established an Offshrore Banking Unit (OBU) in Singapore. They commissioned 464 new ATMs across the country taking the tally to 634 Nos. In the year 2007, the Bank identified Legal & General, the UK-based life insurance company as a partner for their life-insurance venture with initial capital of about Rs 200 crore. In April 2007, the Bank opened Gen-Next, the youth-oriented branch. In May 2007, they signed an agreement with Dun & Bradstreet (D&B) regarding assign ratings to the bank's small-scale industry (SSI) customers. In October 6, 2007, the Bank made a tie up with Pioneer Global Asset Management SpA, Italy for launching joint venture for asset management business (Baroda Pioneer Asset Management Company). The joint venture would first offer products of Indian origin and later bring international investment opportunities to the Indian market. They launched sale of Gold Coins during the year. During the year 2008-09, the Bank opened eight new Urban Retail Loan Factories (URLFs) at Powai Mumbai, Agra, Bareili, Bhopal, Nagpur, Ernakulam, Jodhpur, and Noida. They launched new loan products, namely Loan for Earnest Money Deposit, Baroda Additional Assured Advance to NRIs, Baroda Bachat Mitra, Baroda Car Loan to HNIs/ Corporates, Baroda Advance Against Gold ornaments/ Jewelry/Gold Coins and Special Home Loans package. During the year, the Bank signed a MoU with number of car manufacturing companies viz. Maruti Suzuki India Ltd, Tata Motors Ltd, Hyundai Motors India Ltd and Mahindra & Mahindra Ltd for boosting up Auto Loan portfolio. They made a tie up with Kotak Mahindra Old Mutual Life Insurance Ltd for providing Life Insurance Cover to Education Loan borrowers and Home Loan borrowers sanctioned under a special package. During the year, the Bank opened four new branches/offices, viz. Branch at Guangzhou (China), Electronic Banking Unit at Musaffah (UAE) and branches of the Subsidiaries at Kawempe (Uganda) and Nakuru (Kenya). In July 2008, they received the license from the China Banking Regulatory Commission (CBRC) for their full-fledged branch in Guanzhou City in the Guangdong Province. Also, the online home loan application facility was made available with tracking of status of the application from July 20, 2008. During the year 2009-10, the Bank opened 6 new Retail Loan Factories (RLFs) at Chandigarh, Gamdevi (MMSR), Patna, Coimbatore, Ranchi and Allahabad. They established three SME Loan Factories during the year. In June 22, 2009, the Bank launched a new business process reengineering and organizational restructuring project 'Navnirmaan- Baroda Next'. In September 2009, the Bank brought all the branches of the Bank on CBS platform to offer 'Anywhere Anytime' banking to all its customers. All the branches of the Bank have been enabled to provide e-banking services as well as electronic fund transfer facilities by way of real time gross settlement (RTGS) and National Exchange Fund Transfer (NEFT) to its customers. In October 10, 2009, the Bank launched a new subsidy linked housing loan scheme under the Bank's Home Loan Product styled as 'Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)'. In November 2009, the Bank entered into definitive agreement with T Rowe Price for proposed divestment of 6.50% stake in UTI Asset Management Company and UTI Trustee Company. In November 16, 2009, the Bank entered into life insurance business by forming a Joint Venture (JV) Life Insurance Company namely IndiaFirst Life Insurance Company Limited where Bank of Baroda holds 40% stake, together with Andhra Bank holding 30% and Legal & General Group holding 26%. Also, the Bank signed Corporate Agency Agreement with their joint venture company in life insurance, IndiaFirst Life Insurance Co Ltd, to market their life insurance products under wealth management services. In the year 2010, the Bank received a commercial banking license from Malaysia to a locally incorporated bank, namely India BIA Bank (Malaysia), to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The Bank opened a branch in Auckland, New Zealand, and also opened their tenth branch in the United Kingdom. In July 2010, the Bank signed an agreement with the Unique Identification Authority of India (UIDAI) to act as a registrar for the project. The bank will join the UIDAI in collecting biometric and demographic details of their customers as well as others. In August 2010, the Bank signed a Memorandum of Co-operation (MoC) with the Dubai Multi Commodities Centre Authority (DMCC), a free zone authority dedicated to enhancing trade flows through Dubai. The MoC is designed to provide value-added services to DMCC-registered companies and further enhance the proposition of operating in the Jumairah Lake Towers (JLT) Free Zone. Also, DMCC and the Bank will share knowledge through seminars, workshops and exchange of faculty. During the year 2010-11, the Bank opened seven new branches/offices (including the ones for its overseas subsidiaries). A branch was opened at Ilford, Essex (UK) and five Electronic Banking Service Units (EBSUs) in UAE at RAKIA, Ras Al Khaimah, Al Qusais, Dubai, Sh. Zayed Road, Dubai, Al Karama, Dubai and National Paints, Sharjah. The subsidiary in New Zealand, Bank of Baroda (New Zealand), commenced operations with the opening of branch at Auckland. During the year, the Bank launched a new Retail Asset Product styled as Baroda Traders Loan against the Security of Gold Ornaments/Jewelleries. They launched a Retail Asset scheme under Baroda Personal Loan styled as Baroda Loan to Retirees for Pension Option. Also, they introduced a new Term Deposit Product styled as Baroda Utsav Deposit Scheme for 444 days at the interest rate of 8.10% which was revised from time to time. During the year, the Bank opened a new Gen-next branch in NOIDA. Also, they opened five new Retail Loan Factories at Karol Bagh New Delhi, Raipur, Ludhiana and Nasik, whereas one existing RLF at Jodhpur was closed. In January 15, 2011, the Bank launched two new Retail Liability Products under Savings Bank Segment styled as Baroda Pensioners Savings Account and a Life Insurance linked Savings product styled as Baroda Jeevan Suraksha Savings Account under a tie-up arrangement with IndiaFirst Life Insurance Company. On 29 March 2011, Bank of Baroda allotted 2.72 crore equity shares at issue price of Rs 902.14 per share amounting to Rs 2461 crore on preferential basis to Government of India. On 29 February 2012, Bank of Baroda announced that Banco Bilbao Vizcaya Argentaria (BBVA) has informed the bank that it may not be able to proceed further with regard to a proposed joint venture regarding credit card business. Earlier, Bank of Baroda had entered into a Memorandum of Understanding (MOU) with BBVA for a joint venture regarding credit card business. 30 Mar 2012, Bank of Baroda informed the stock exchanges that the bank has allotted 1.95 crore equity shares at issue price of Rs 840.10 per share aggregating to Rs 1644.68 crore to Life Insurance Corporation of India on preferential basis. On 12 March 2013, the Allotment Committee of Bank Baroda issued and allotted 1.01 crore equity shares at issue price of Rs 838.85 per share aggregating to Rs 850 crore to Government of India (President of India) on preferential basis, as per SEBI Guidelines. On 18 January 2014, the Allotment Committee of Bank Baroda issued and allotted 81.58 lakh equity shares at issue price of Rs 674.12 per share aggregating to Rs 550 crore to Government of India on preferential basis. On 9 July 2014, Bank of Baroda announced that the bank acting through its London branch, has issued fixed rate Senior Unsecured Notes amounting to USD 250 million on 8 July 2014 under Regulation-S by way of tapping/re-opening of its Senior Unsecured Notes of USD 750 million originally issued on 23 January 2014 and maturing on 23 July 2019. The notes are issued to meet the present/future long term funding requirement at the overseas centres of the bank. The Board of Directors of Bank of Baroda at its meeting held on 27 September 2014 accorded an in-principle approval for the sub-division of one equity share of the face value of Rs 10 each into five equity shares of face value of Rs 2 each. On 31 March 2015, Bank of Baroda issued and allotted 6.44 crore equity shares at an issue price of Rs 195.59 per equity share amounting to Rs 1260 crore to Government of India on preferential basis. On 29 September 2015, Bank of Baroda issued and allotted 9.26 crore equity shares at an issue price of Rs 192.74 per equity share amounting to Rs 1786 crore to Government of India on preferential basis. On 25 July 2016, Bank of Baroda announced that the Reserve Bank of India has imposed a penalty of Rs 5 crore on the bank. The RBI carried out the investigation and noted the deficiencies, which were reflective of weaknesses and failures in internal control mechanisms in respect of certain AML provisions such as monitoring of transactions, timely reporting to FIU, and assigning of UCIC to customers. Bank of Baroda said in a statement that the bank has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur. On 15 October 2016, Bank of Baroda announced that the bank has initiated the process of raising funds through issuance of Basel III compliant AT-I (Additional Tier-I Capital) Bonds, i.e. Perpetual Debt Instrument, as per the regulatory definitions of the Reserve Banks of India of Rs 1000 crore with Green Shoe Option of Rs 1000 crore on private placement basis. On 3 May 2017, Bank of Baroda announced that the bank has elected to exercise its option to redeem all outstanding US$ 300 million Upper Tier-II Subordinated Notes (the Notes) on 25 May 2017. The Notes were issued by the bank acting through its London Branch on 24 May 2007 pursuant to the bank's US$ 3 billion Medium Term Note Programme (the MTN Programme) listed with Singapore Stock Exchange. On 23 November 2017, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with CGR Collateral Management Ltd with an objective to provide collateral management services to the borrowers who are availing the facility of loan against warehouse receipt through the network of Bank of Baroda branches across the country. CGR Collateral Management Ltd is engaged in providing warehouse management services relating to commodities and inventories and complete Agri business solutions to farmers. On 28 December 2017, Bank of Baroda announced that it has entered into an agreement with UniCredit S.p.A. to acquire their entire stake in Baroda Pioneer Asset Management Company, thus increasing its shareholding to 100%. Its foreign partner Pioneer Investments will exit the venture. The move comes on the back of the acquisition of Pioneer Investments by Amundi earlier this year. Amundi already has a presence in an Indian asset management company. On 18 January 2018, Bank of Baroda announced its on boarding on all 3 RBI approved Trade Receivables Discounting System (TReDS) platforms, thereby becoming the first bank to support this novel Fintech initiative by RBI. On 12 February 2018, Bank of Baroda announced that in line with the bank's strategic plan for rationalization of overseas branches, the bank is exiting from its operations in South Africa. The business of the bank in South Africa is not very significant and the exit will not have any major impact on the financials of the bank. On 14 February 2018, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with Small Farmers' Agribusiness Consortium (SFAC) as a preferred bank for the State of Maharashtra. The bank will play an active role in promoting quality investments in the agri business sector and provide collateral free loans to Farmers Producer Companies (FPCs) in Maharashtra under the Credit Guarantee Scheme of SFAC. SFAC is an autonomous society promoted by Ministry of Agriculture, Cooperation and Farmers' Welfare, Government of India which is pioneering inclusive growth of small and marginal farmers engaged in agribusiness activities. On 6 March 2018, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with National e-Repository Limited (NERL). The MoU with NERL will provide the bank an access to IT based ecosystem for management of life cycle of negotiable warehouse receipts (NWRs) in electronic form. On 27 March 2018, Bank of Baroda announced the issue and allotment of 34.13 crore shares at an issue price of Rs 157.46 per share amounting to Rs 5375 crore to Government of India on preferential basis. During FY 2019, the Bank opened 22 new rural and semi-urban branches. During the year 2019, Bank closed down its Offshore Banking Unit at Bahamas, wholesale banking unit in Bahrain, and surrendered banking license of subsidiary at Ghana which had three branches. Further, Muttrah branch at Oman was merged with the Greater Muttrah branch and Durban branch was merged with Johannesburg branch in South Africa. The rationalisation of operations based on the strategic review is continuing. During the year 2019, Bank has developed customised software for the e-LC solution for Ministry of Defence. Bank of Baroda is the only Public Sector Bank to launch e-KVP utility through banks. The Bank has integrated itself on the e-PCS portal of Indian Port Association for all the 3 major ports across India. An MOU with the Kandla Port has been signed. During the year 2019, the Bank opened 55 new domestic branches and closed/merged 10. Of the new branches, two were high-tech digital branches and 9 digital portable branches. In international operations, Bank opened an Offshore International Banking Unit (OIBU) in International Financial Service Centre (IFSC), GIFT City, Gandhinagar, Gujarat and closed its representative office in Bangkok, Thailand and one electronic banking service unit in UAE. In FY2019, Bank opened 3 new branches and established 5 loan-processing units named as Naini Loan Points (NLPs) at different locations. Bank installed 11 white label ATMs taking the total to 24 such ATMs and installed 772 POS machines. During the year 2019, Bank entered into an agreement with UniCredit S.P.A.(the parent company of Pioneer Global Asset Management SpA) to buy its 51% stake in the company, subject to regulatory approvals. Post completion of the transaction, the Bank will own 100% of the asset. During FY 2020, credit growth increased to Rs 6,90,121 crore within which domestic advances of the Bank amounted to Rs 5,70,341 crore. The increase in domestic advances was led by retail loans and agriculture loans. Retail loan increased to Rs 1,20,657 crore led by home and auto loans at Rs 83,012 crore and Rs 16,490 crore respectively. With this, the ratio of retail loans to total domestic loans increased to 19.8% during the year. The international loan book grew by 21.4% to Rs 1,19,731 crore as on 31 March 2020. The total assets of the Bank increased to Rs 11,57,915 crore as on 31 March 2020. During the FY2020,Vijaya Bank and Dena Bank were amalgamated with Bank of Baroda. In pursuant to the scheme of Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda, and based on the Swap Ratio agreed upon between the banks on 02 January 2019. The bank has allotted the following shares to the shareholders to the erstwhile Vijaya Bank and erstwhile Dena Bank on 01 April 2019. i. 52,42,00,772 fully paid up equity shares of face value of Rs. 2/- each of Bank of Baroda aggregating Rs 104,84,01,544/- be issued and allotted to equity shareholders of Vijaya Bank.ii. 24,84,51,166 fully paid up equity shares of face value of Rs. 2/- each of Bank of Baroda aggregating Rs 49,69,02,332/- be issued and allotted to equity shareholders of Dena Bank. After the allotment of the above shares the Shareholding of the Government of India (the promoter shareholder) increased from 63.26% (69.23% including Share Application money) to 71.60% as at on 31March 2020. The Bank entered into a MoU with Government of Gujarat for hassle free finance to MSME borrowers and to be the preferred Bank under the Government of Gujarat's portal for the new entrepreneurs in the identified industrial area. As on 31 March 2020, the bank's distribution network stood at 9,482 domestic branches, 101 overseas branches, 13193 ATMs & cash recyclers. During the FY2020, the Bank awarded 'National award for SHG bank linkage 2018-19 'by DAY-NRLM, Government at New Delhi. The Bank received 'The Excellence Award under Gold Category for outstanding performance in implementation of NBCFDC Loans in the public sector schemes 'on the occasion of 28th foundation day of NBCFDC. The Bank bagged Silver at SAMMIE 2019 - Best Social Media Brand Award (BFSI - banking category). The Bank secured 1st position and has been awarded Top Performer in New Accounts Opened under PSU Bank category, at NSDL Star Performer Awards 2019, at TajLands End, Mumbai. In December 2020,the bank signed a Memorandum of Understanding (MoU) with Indian Navy and Indian Coast Guard and renewed its existing MoU with the Indian Army, to offer specially customized banking services through Baroda Military Salary Package', The Bank has made the same arrangement with Indian Air Force also, thereby covering all the four Armed Forces under Ministry of Defence. A similar package has been introduced by the Bank for the Central Armed Police Forces also. In January 2021,the bank signed a memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI) to support MSME enterprises with an online facility of submitting their loan restructuring proposal. The Govt. of India and RBI has come up with several measures to extend relief to MSMEs to tide over the present pressing times post pandemic COVID-19. Furthermore, RBI has extended the One-Time Restructuring (OTR) window till March 2021 to provide relief to MSMEs under financial stress, with credit exposure up to Rs. 25 crores. In this backdrop, Bank of Baroda has entered into MoU arrangement with SIDBI for a web-based platform namely Asset Restructuring Module for MSMEs (ARM-MSME)'. During FY 2021, Bank raised capital through the Qualified Institutional Placement route (QIP) amounting to Rs 4,500 crore. Bank issued and allotted 55.08 crore equity shares to eligible qualified institutional buyers at the issue price of Rs 81.70 per equity share. New retail asset products such as Personal Loan under COVID-19 Scheme for individual existing borrowers, Baroda Personal Loan to Government Employees Salary Account customers and pre-approved loan for liability customers were launched during the year 2021. The Bank introduced SB account linked insurance products in partnership with TATA AIG, Max Bupa and Star Health Insurance Company and opened 1.73 lakh insurance linked SB accounts during FY 2021. During the year 2021, Bank entered into MoU arrangement with Daimler India Commercial Vehicles Pvt. Ltd. (Bharat Benz). As on 31 March 2021, the bank's distribution network stood at 8,214 domestic branches, 96 overseas branches, 11633 ATMs & cash recyclers. The Bank opened 13 new domestic branches and merged 1,281 branches with existing branches during FY 2021. As on 31 March 2022, the Bank's distribution network stood at 8,168 domestic branches, 94 overseas branches, 11633 ATMs & cash recyclers. It opened new 9 domestic branches and merged 55 branches with existing branches during FY 2022.

Bank of Baroda Chairman Speech

Dear Stakeholders,

It gives me great pleasure to share with you the progress made by your Bank through this Annual Report and the general operating environment during 2021-22 (FY 2022).

FY2021-22 started with the second wave of Covid-19 and the uncertainty on its spread posed high risks across the globe. The faster spread of the mutated virus across the world and the unequal access to vaccine for countries severely affected the overall global growth prospects. However, the response of countries to the situation in terms of ensuring access to the vaccines and additional policy stimulus helped revive global economic activity to a great extent, though in a phased manner. India has done very well in this respect and this is manifested in the GDP growth of 8.7% in FY 2022 with all sectors operating in a normal manner.

The credit for this high growth trajectory for the economy may be attributed to the efforts of the Government which provided an enabling environment by providing incentives where required, like the PLI scheme while also addressing the needs of the weaker sections and yet maintaining the fiscal deficit at the targeted rate. At the same time the capex provided the necessary push for investment which had to pick up at the private sector end. We can be sanguine of this link being strengthened in FY23.

As far as the Indian Economy is concerned, the year 2021-22 witnessed overall revival across all major sectors in the economy. The GDP of the country expanded by 20.3% in Q1, 8.5% in Q2, 5.4% in Q3 and 4.1% in Q4 of FY 2022. The GDP for the full year (FY 2022) is marked at 8.7% as compared with a contraction of (-)6.6% during FY 2021, as a result of overall revival in the economic activity of the country. India?s GDP growth at 8.7% for FY 2022 was in line with the estimates of Ministry of Statistics and Programme Implementation (MoSPI) at 8.9% and the IMF estimates at 8.2%. With the proactive actions being taken by the government and regulators, we do believe that India?s GDP rate will continue to grow in FY 2023 as well and India will still be one of the fastest growing economies in the world. The RBI had maintained an accommodative monetary policy with unchanged repo rate through the year as the focus was on growth. The RBI has taken several measures to tackle the situation that has arisen due to the pandemic and due to the geopolitical problems which has the potential of affecting the country?s finan -cial sector. The Reserve Bank has given the highest priority to maintain financial stability by taking necessary steps to ease liquidity constraints, restore market confi -dence and prevent contagion to other segments of the financial market. All this has ensured that the banking system has become well capitalized with the quality of assets improving substantially during the year.

Towards the end of FY 2022, the war in Ukraine has enhanced uncertainty and posed challenges. The Indian government has reacted proactively to curb inflation as well as reducing supply disruptions to ensure that the equilibrium is maintained in the economy.

Currency markets have turned highly volatile in response to a hawkish Fed and elevated Russia-Ukraine tensions with the US dollar index reaching its highest level since June 2020 due to a flight to safety syndrome. Here too prompt intervention and guidance by the RBI has ensured that volatility has been curbed without the rupee losing the competitive edge in the exports market.

Going forward, elevated oil and commodity prices, lingering war and sanctions, prolonged supply chain disruptions, global financial market volatility emanating from monetary policy shifts in major economies, and renewed waves of COVID-19 across countries are factors that will drive market sentiments.

We are, however, quite sanguine of FY23 notwithstanding the challenges being posed by the external economy as the strong foundations for sustained growth in the Indian economy as well as in your Bank are in place. The banking sector can see better business as the private sector investment cycle gradually turns around. This augurs well for your Bank.

Dividend to the Shareholders

Your Bank recorded an excellent performance during the Financial Year 2022. The major business and profitability parameters of the Bank have been improved significantly as compared with previous financial

I am happy to inform you that, after FY 2017, the Bank has proposed a dividend of Rs. 2.85 per share for the financial year ended 31st March 2022, which is a clear indication of Bank?s strong financials and increasing

Striving to offer future banking today

Your Bank has always been striving to be the first in the industry to offer the best. The Bank has launched various unique banking features on its digital interfaces like bobWorld. The initiatives like bob World, BoB-NOWW, digital lending platform ensure that our customers are not only getting the best in the industry today but also elements of future banking today itself. Our digital banking platform is not only state of the art but is also safe with all risk and security features built in. We have been awarded as the ‘Best Technology Bank? by the Indian Banks? Association (IBA) for the 2nd year in a row. The bank is getting a lot of positive responses from our retail as well as corporate banking customers for our digital products and services. This gives us a lot of motivation to work even harder to always offer the best and latest in the industry.

Looking ahead

The Bank has a positive outlook for the Financial Year 2022-23. The Government of India has come up with many initiatives for increasing spending on infrastructure projects and other investments to revive the economy. The banking industry of course would be benefited due to increase in the demand for bank credit and Bank of Baroda would be a key beneficiary of these developments. The Bank has shown that it is adaptable to change and has been able to respond quickly to the evolving macroeconomic conditions. The Bank has fine-tuned its operational capabilities and increased its delivery capacity. The Bank has adopted a ‘PHYGITAL? model by offering the latest products and services using its strong digital platform along with conventional branch banking. The major business goals and objectives of the Bank are focused on creating a sustainable and profitable business model year.with a greater customer friendly approach adopting latest technological innovations to increase the brand name of the Bank.

Going forward, the Bank will continue to serve the society and all our customers, while supporting various Government initiatives for the progress of the Nation and maximizing our productivity and profitability to enhance the satisfaction of our stakeholders.

I sincerely thank all the stakeholders including shareholders, customers for their continued support and trust in our Bank. I would like to place on record my appreciation for all our Barodian (employees) for their hard work and enthusiasm shown, especially during the difficult time of the pandemic, which ensured continuous services to our customers. I also express my sincere thanks to the Government of India, the Reserve Bank of India and other regulators for their support and guidance. Last but not the least is to place on record my thanks and appreciation to all the Board members for their valuable inputs and guidance.

I am confident that the Bank will remain committed to achieve its business goals and social commitments and make you all more proud of being associated with the Bank.

Dr. Hasmukh Adhia

Chairman

   

Bank of Baroda Company History

Bank of Baroda is one of the leading commercial public sector banks in India. The Bank's solutions includes personal banking, which includes deposits, gen-next services, retail loans, credit cards, debit cards, services and lockers; business banking, which includes deposits, loans and advances, services and lockers; corporate banking, which includes wholesale banking, deposits, loans and advances and services, and international business, which includes non-resident Indian (NRI) services, foreign currency credits, ECB, offshore banking, export finance, import finance, correspondent banking, trade finance and international treasury. The Bank offers services, such as domestic operations and For-ex operations. They also offer rural banking services, which include deposits, priority sector advances, remittance, collection services, pension and lockers. They also offer fee-based services such as cash management and remittance services. The Bank is having their head office located at Baroda and their corporate office is located at Mumbai. Bank of Baroda is one of India's largest banks and as on December 2020, the bank has a strong domestic presence spanning 8,246 domestic branches and 11,553 ATMs & Cash Recyclers supported by self-service channels. The bank has a significant international presence with a network of 99 overseas branches/offices subsidiaries, spanning 21 countries. The bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.) and BOB Capital Markets. Bank of Baroda also has a joint venture for life insurance business with India First Life Insurance. The bank owns 98.57% in The Nainital Bank. The bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank. Bank of Baroda was incorporated on July 20, 1908 as a as a private bank with the name The Bank of Baroda Ltd. The Bank was established with a paid up capital of Rs 1 million and was founded by Maharaja Sayajirao III of Baroda. In the year 1910, the Bank opened their first branch in the city of Ahmedabad. In the year 1919, they opened their first branch in Mumbai City. In the year 1953, the Bank opened first international branch at Mombasa, Kenya. During the period 1953-1969, the Bank opened three branches in Fiji, five branches in Kenya, three branches in Uganda and one each in London and Guyana. In the year 1958, The Hind Bank merged with the Bank and in the year 1962, The New Citizen Bank Ltd amalgamated with the Bank. In the year 1964, The Umargaon Peoples' Bank & Tamilnadu Central Bank amalgamated with the Bank. In July 1969, the Bank was nationalized and the name was changed from 'The Bank of Baroda Ltd' to 'Bank of Baroda'. During the period 1969 to 1974, they established three branches in Mauritius, two branches in UK and one branch in Fiji. They entered in the oil rich Gulf countries in the year 1974 with two branches were opened in UAE, one at Dubai and another at Abu Dhabi. In the year 1976, the Bank sponsored the first of their 19 Regional Rural Banks thereby seeking to complement their operations in rural heartland. In the year 1977, they launched the 'Gram Vikas Kendra' (GVK), an innovative model for integrated rural development. In the year 1984, the Bank launched their Credit Card Operations. In the year 1988, The Traders Bank Ltd amalgamated with the Bank. In the year 1991, the Bank established their housing finance subsidiary, BOB Housing. They also established subsidiaries for businesses of credit cards (BOBCARDS), asset management (BOB AMC) and capital market activities (BOB Caps). In December 1996, the Bank entered the capital market with an Initial Public Offering. In the year 1997, they opened a branch in Durban. In the year 1999, the Bank commenced operations as a depository. Also, Bareilly Corporation Bank amalgamated with the Bank during the year. In the year 2000, the Bank appointed Arthur Andersen India Pvt Ltd as risk management consultant for setting up Comprehensive Risk Management Architecture for the Bank. In the year 2001, they established a separate Risk Management Department and specialized integrated treasury branch. In the year 2002, The Benares State Bank Ltd merged with the Bank. They launched Debit Card project in affiliation with VISA. In the year 2004, The South Gujarat Local Area Bank amalgamated with the Bank. In June 1, 2004, the Bank signed a MoU with National Insurance Company Ltd for selling their non life insurance products under corporate agency arrangement. During the year 2004-05, the Bank expanded their interconnected ATM network to cross 501, spread over 180 centres in the country. The bank also introduced 8AM to 8PM banking at 101 branches and 24-Hour banking at 5 branches in the country. They launched the IT Enabled Business Transformation Program and signed the contract with Hewlett Packard. They launched Multicity cheque facility. In the year 2006, the Bank established an Offshrore Banking Unit (OBU) in Singapore. They commissioned 464 new ATMs across the country taking the tally to 634 Nos. In the year 2007, the Bank identified Legal & General, the UK-based life insurance company as a partner for their life-insurance venture with initial capital of about Rs 200 crore. In April 2007, the Bank opened Gen-Next, the youth-oriented branch. In May 2007, they signed an agreement with Dun & Bradstreet (D&B) regarding assign ratings to the bank's small-scale industry (SSI) customers. In October 6, 2007, the Bank made a tie up with Pioneer Global Asset Management SpA, Italy for launching joint venture for asset management business (Baroda Pioneer Asset Management Company). The joint venture would first offer products of Indian origin and later bring international investment opportunities to the Indian market. They launched sale of Gold Coins during the year. During the year 2008-09, the Bank opened eight new Urban Retail Loan Factories (URLFs) at Powai Mumbai, Agra, Bareili, Bhopal, Nagpur, Ernakulam, Jodhpur, and Noida. They launched new loan products, namely Loan for Earnest Money Deposit, Baroda Additional Assured Advance to NRIs, Baroda Bachat Mitra, Baroda Car Loan to HNIs/ Corporates, Baroda Advance Against Gold ornaments/ Jewelry/Gold Coins and Special Home Loans package. During the year, the Bank signed a MoU with number of car manufacturing companies viz. Maruti Suzuki India Ltd, Tata Motors Ltd, Hyundai Motors India Ltd and Mahindra & Mahindra Ltd for boosting up Auto Loan portfolio. They made a tie up with Kotak Mahindra Old Mutual Life Insurance Ltd for providing Life Insurance Cover to Education Loan borrowers and Home Loan borrowers sanctioned under a special package. During the year, the Bank opened four new branches/offices, viz. Branch at Guangzhou (China), Electronic Banking Unit at Musaffah (UAE) and branches of the Subsidiaries at Kawempe (Uganda) and Nakuru (Kenya). In July 2008, they received the license from the China Banking Regulatory Commission (CBRC) for their full-fledged branch in Guanzhou City in the Guangdong Province. Also, the online home loan application facility was made available with tracking of status of the application from July 20, 2008. During the year 2009-10, the Bank opened 6 new Retail Loan Factories (RLFs) at Chandigarh, Gamdevi (MMSR), Patna, Coimbatore, Ranchi and Allahabad. They established three SME Loan Factories during the year. In June 22, 2009, the Bank launched a new business process reengineering and organizational restructuring project 'Navnirmaan- Baroda Next'. In September 2009, the Bank brought all the branches of the Bank on CBS platform to offer 'Anywhere Anytime' banking to all its customers. All the branches of the Bank have been enabled to provide e-banking services as well as electronic fund transfer facilities by way of real time gross settlement (RTGS) and National Exchange Fund Transfer (NEFT) to its customers. In October 10, 2009, the Bank launched a new subsidy linked housing loan scheme under the Bank's Home Loan Product styled as 'Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)'. In November 2009, the Bank entered into definitive agreement with T Rowe Price for proposed divestment of 6.50% stake in UTI Asset Management Company and UTI Trustee Company. In November 16, 2009, the Bank entered into life insurance business by forming a Joint Venture (JV) Life Insurance Company namely IndiaFirst Life Insurance Company Limited where Bank of Baroda holds 40% stake, together with Andhra Bank holding 30% and Legal & General Group holding 26%. Also, the Bank signed Corporate Agency Agreement with their joint venture company in life insurance, IndiaFirst Life Insurance Co Ltd, to market their life insurance products under wealth management services. In the year 2010, the Bank received a commercial banking license from Malaysia to a locally incorporated bank, namely India BIA Bank (Malaysia), to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The Bank opened a branch in Auckland, New Zealand, and also opened their tenth branch in the United Kingdom. In July 2010, the Bank signed an agreement with the Unique Identification Authority of India (UIDAI) to act as a registrar for the project. The bank will join the UIDAI in collecting biometric and demographic details of their customers as well as others. In August 2010, the Bank signed a Memorandum of Co-operation (MoC) with the Dubai Multi Commodities Centre Authority (DMCC), a free zone authority dedicated to enhancing trade flows through Dubai. The MoC is designed to provide value-added services to DMCC-registered companies and further enhance the proposition of operating in the Jumairah Lake Towers (JLT) Free Zone. Also, DMCC and the Bank will share knowledge through seminars, workshops and exchange of faculty. During the year 2010-11, the Bank opened seven new branches/offices (including the ones for its overseas subsidiaries). A branch was opened at Ilford, Essex (UK) and five Electronic Banking Service Units (EBSUs) in UAE at RAKIA, Ras Al Khaimah, Al Qusais, Dubai, Sh. Zayed Road, Dubai, Al Karama, Dubai and National Paints, Sharjah. The subsidiary in New Zealand, Bank of Baroda (New Zealand), commenced operations with the opening of branch at Auckland. During the year, the Bank launched a new Retail Asset Product styled as Baroda Traders Loan against the Security of Gold Ornaments/Jewelleries. They launched a Retail Asset scheme under Baroda Personal Loan styled as Baroda Loan to Retirees for Pension Option. Also, they introduced a new Term Deposit Product styled as Baroda Utsav Deposit Scheme for 444 days at the interest rate of 8.10% which was revised from time to time. During the year, the Bank opened a new Gen-next branch in NOIDA. Also, they opened five new Retail Loan Factories at Karol Bagh New Delhi, Raipur, Ludhiana and Nasik, whereas one existing RLF at Jodhpur was closed. In January 15, 2011, the Bank launched two new Retail Liability Products under Savings Bank Segment styled as Baroda Pensioners Savings Account and a Life Insurance linked Savings product styled as Baroda Jeevan Suraksha Savings Account under a tie-up arrangement with IndiaFirst Life Insurance Company. On 29 March 2011, Bank of Baroda allotted 2.72 crore equity shares at issue price of Rs 902.14 per share amounting to Rs 2461 crore on preferential basis to Government of India. On 29 February 2012, Bank of Baroda announced that Banco Bilbao Vizcaya Argentaria (BBVA) has informed the bank that it may not be able to proceed further with regard to a proposed joint venture regarding credit card business. Earlier, Bank of Baroda had entered into a Memorandum of Understanding (MOU) with BBVA for a joint venture regarding credit card business. 30 Mar 2012, Bank of Baroda informed the stock exchanges that the bank has allotted 1.95 crore equity shares at issue price of Rs 840.10 per share aggregating to Rs 1644.68 crore to Life Insurance Corporation of India on preferential basis. On 12 March 2013, the Allotment Committee of Bank Baroda issued and allotted 1.01 crore equity shares at issue price of Rs 838.85 per share aggregating to Rs 850 crore to Government of India (President of India) on preferential basis, as per SEBI Guidelines. On 18 January 2014, the Allotment Committee of Bank Baroda issued and allotted 81.58 lakh equity shares at issue price of Rs 674.12 per share aggregating to Rs 550 crore to Government of India on preferential basis. On 9 July 2014, Bank of Baroda announced that the bank acting through its London branch, has issued fixed rate Senior Unsecured Notes amounting to USD 250 million on 8 July 2014 under Regulation-S by way of tapping/re-opening of its Senior Unsecured Notes of USD 750 million originally issued on 23 January 2014 and maturing on 23 July 2019. The notes are issued to meet the present/future long term funding requirement at the overseas centres of the bank. The Board of Directors of Bank of Baroda at its meeting held on 27 September 2014 accorded an in-principle approval for the sub-division of one equity share of the face value of Rs 10 each into five equity shares of face value of Rs 2 each. On 31 March 2015, Bank of Baroda issued and allotted 6.44 crore equity shares at an issue price of Rs 195.59 per equity share amounting to Rs 1260 crore to Government of India on preferential basis. On 29 September 2015, Bank of Baroda issued and allotted 9.26 crore equity shares at an issue price of Rs 192.74 per equity share amounting to Rs 1786 crore to Government of India on preferential basis. On 25 July 2016, Bank of Baroda announced that the Reserve Bank of India has imposed a penalty of Rs 5 crore on the bank. The RBI carried out the investigation and noted the deficiencies, which were reflective of weaknesses and failures in internal control mechanisms in respect of certain AML provisions such as monitoring of transactions, timely reporting to FIU, and assigning of UCIC to customers. Bank of Baroda said in a statement that the bank has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur. On 15 October 2016, Bank of Baroda announced that the bank has initiated the process of raising funds through issuance of Basel III compliant AT-I (Additional Tier-I Capital) Bonds, i.e. Perpetual Debt Instrument, as per the regulatory definitions of the Reserve Banks of India of Rs 1000 crore with Green Shoe Option of Rs 1000 crore on private placement basis. On 3 May 2017, Bank of Baroda announced that the bank has elected to exercise its option to redeem all outstanding US$ 300 million Upper Tier-II Subordinated Notes (the Notes) on 25 May 2017. The Notes were issued by the bank acting through its London Branch on 24 May 2007 pursuant to the bank's US$ 3 billion Medium Term Note Programme (the MTN Programme) listed with Singapore Stock Exchange. On 23 November 2017, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with CGR Collateral Management Ltd with an objective to provide collateral management services to the borrowers who are availing the facility of loan against warehouse receipt through the network of Bank of Baroda branches across the country. CGR Collateral Management Ltd is engaged in providing warehouse management services relating to commodities and inventories and complete Agri business solutions to farmers. On 28 December 2017, Bank of Baroda announced that it has entered into an agreement with UniCredit S.p.A. to acquire their entire stake in Baroda Pioneer Asset Management Company, thus increasing its shareholding to 100%. Its foreign partner Pioneer Investments will exit the venture. The move comes on the back of the acquisition of Pioneer Investments by Amundi earlier this year. Amundi already has a presence in an Indian asset management company. On 18 January 2018, Bank of Baroda announced its on boarding on all 3 RBI approved Trade Receivables Discounting System (TReDS) platforms, thereby becoming the first bank to support this novel Fintech initiative by RBI. On 12 February 2018, Bank of Baroda announced that in line with the bank's strategic plan for rationalization of overseas branches, the bank is exiting from its operations in South Africa. The business of the bank in South Africa is not very significant and the exit will not have any major impact on the financials of the bank. On 14 February 2018, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with Small Farmers' Agribusiness Consortium (SFAC) as a preferred bank for the State of Maharashtra. The bank will play an active role in promoting quality investments in the agri business sector and provide collateral free loans to Farmers Producer Companies (FPCs) in Maharashtra under the Credit Guarantee Scheme of SFAC. SFAC is an autonomous society promoted by Ministry of Agriculture, Cooperation and Farmers' Welfare, Government of India which is pioneering inclusive growth of small and marginal farmers engaged in agribusiness activities. On 6 March 2018, Bank of Baroda announced that it has entered into a Memorandum of Understanding (MoU) with National e-Repository Limited (NERL). The MoU with NERL will provide the bank an access to IT based ecosystem for management of life cycle of negotiable warehouse receipts (NWRs) in electronic form. On 27 March 2018, Bank of Baroda announced the issue and allotment of 34.13 crore shares at an issue price of Rs 157.46 per share amounting to Rs 5375 crore to Government of India on preferential basis. During FY 2019, the Bank opened 22 new rural and semi-urban branches. During the year 2019, Bank closed down its Offshore Banking Unit at Bahamas, wholesale banking unit in Bahrain, and surrendered banking license of subsidiary at Ghana which had three branches. Further, Muttrah branch at Oman was merged with the Greater Muttrah branch and Durban branch was merged with Johannesburg branch in South Africa. The rationalisation of operations based on the strategic review is continuing. During the year 2019, Bank has developed customised software for the e-LC solution for Ministry of Defence. Bank of Baroda is the only Public Sector Bank to launch e-KVP utility through banks. The Bank has integrated itself on the e-PCS portal of Indian Port Association for all the 3 major ports across India. An MOU with the Kandla Port has been signed. During the year 2019, the Bank opened 55 new domestic branches and closed/merged 10. Of the new branches, two were high-tech digital branches and 9 digital portable branches. In international operations, Bank opened an Offshore International Banking Unit (OIBU) in International Financial Service Centre (IFSC), GIFT City, Gandhinagar, Gujarat and closed its representative office in Bangkok, Thailand and one electronic banking service unit in UAE. In FY2019, Bank opened 3 new branches and established 5 loan-processing units named as Naini Loan Points (NLPs) at different locations. Bank installed 11 white label ATMs taking the total to 24 such ATMs and installed 772 POS machines. During the year 2019, Bank entered into an agreement with UniCredit S.P.A.(the parent company of Pioneer Global Asset Management SpA) to buy its 51% stake in the company, subject to regulatory approvals. Post completion of the transaction, the Bank will own 100% of the asset. During FY 2020, credit growth increased to Rs 6,90,121 crore within which domestic advances of the Bank amounted to Rs 5,70,341 crore. The increase in domestic advances was led by retail loans and agriculture loans. Retail loan increased to Rs 1,20,657 crore led by home and auto loans at Rs 83,012 crore and Rs 16,490 crore respectively. With this, the ratio of retail loans to total domestic loans increased to 19.8% during the year. The international loan book grew by 21.4% to Rs 1,19,731 crore as on 31 March 2020. The total assets of the Bank increased to Rs 11,57,915 crore as on 31 March 2020. During the FY2020,Vijaya Bank and Dena Bank were amalgamated with Bank of Baroda. In pursuant to the scheme of Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda, and based on the Swap Ratio agreed upon between the banks on 02 January 2019. The bank has allotted the following shares to the shareholders to the erstwhile Vijaya Bank and erstwhile Dena Bank on 01 April 2019. i. 52,42,00,772 fully paid up equity shares of face value of Rs. 2/- each of Bank of Baroda aggregating Rs 104,84,01,544/- be issued and allotted to equity shareholders of Vijaya Bank.ii. 24,84,51,166 fully paid up equity shares of face value of Rs. 2/- each of Bank of Baroda aggregating Rs 49,69,02,332/- be issued and allotted to equity shareholders of Dena Bank. After the allotment of the above shares the Shareholding of the Government of India (the promoter shareholder) increased from 63.26% (69.23% including Share Application money) to 71.60% as at on 31March 2020. The Bank entered into a MoU with Government of Gujarat for hassle free finance to MSME borrowers and to be the preferred Bank under the Government of Gujarat's portal for the new entrepreneurs in the identified industrial area. As on 31 March 2020, the bank's distribution network stood at 9,482 domestic branches, 101 overseas branches, 13193 ATMs & cash recyclers. During the FY2020, the Bank awarded 'National award for SHG bank linkage 2018-19 'by DAY-NRLM, Government at New Delhi. The Bank received 'The Excellence Award under Gold Category for outstanding performance in implementation of NBCFDC Loans in the public sector schemes 'on the occasion of 28th foundation day of NBCFDC. The Bank bagged Silver at SAMMIE 2019 - Best Social Media Brand Award (BFSI - banking category). The Bank secured 1st position and has been awarded Top Performer in New Accounts Opened under PSU Bank category, at NSDL Star Performer Awards 2019, at TajLands End, Mumbai. In December 2020,the bank signed a Memorandum of Understanding (MoU) with Indian Navy and Indian Coast Guard and renewed its existing MoU with the Indian Army, to offer specially customized banking services through Baroda Military Salary Package', The Bank has made the same arrangement with Indian Air Force also, thereby covering all the four Armed Forces under Ministry of Defence. A similar package has been introduced by the Bank for the Central Armed Police Forces also. In January 2021,the bank signed a memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI) to support MSME enterprises with an online facility of submitting their loan restructuring proposal. The Govt. of India and RBI has come up with several measures to extend relief to MSMEs to tide over the present pressing times post pandemic COVID-19. Furthermore, RBI has extended the One-Time Restructuring (OTR) window till March 2021 to provide relief to MSMEs under financial stress, with credit exposure up to Rs. 25 crores. In this backdrop, Bank of Baroda has entered into MoU arrangement with SIDBI for a web-based platform namely Asset Restructuring Module for MSMEs (ARM-MSME)'. During FY 2021, Bank raised capital through the Qualified Institutional Placement route (QIP) amounting to Rs 4,500 crore. Bank issued and allotted 55.08 crore equity shares to eligible qualified institutional buyers at the issue price of Rs 81.70 per equity share. New retail asset products such as Personal Loan under COVID-19 Scheme for individual existing borrowers, Baroda Personal Loan to Government Employees Salary Account customers and pre-approved loan for liability customers were launched during the year 2021. The Bank introduced SB account linked insurance products in partnership with TATA AIG, Max Bupa and Star Health Insurance Company and opened 1.73 lakh insurance linked SB accounts during FY 2021. During the year 2021, Bank entered into MoU arrangement with Daimler India Commercial Vehicles Pvt. Ltd. (Bharat Benz). As on 31 March 2021, the bank's distribution network stood at 8,214 domestic branches, 96 overseas branches, 11633 ATMs & cash recyclers. The Bank opened 13 new domestic branches and merged 1,281 branches with existing branches during FY 2021. As on 31 March 2022, the Bank's distribution network stood at 8,168 domestic branches, 94 overseas branches, 11633 ATMs & cash recyclers. It opened new 9 domestic branches and merged 55 branches with existing branches during FY 2022.

Bank of Baroda Directors Reports

"Your Directors have pleasure in presenting the One Hundred and Fourteenth Annual Report of the bank with the audited Balance Sheet, Profit & Loss Account and the Report on Business and

Operations for the year ended March 31, 2022 (FY 2022)."

Financial Performance

(Rs. in crore)

Particulars	Year ended March 31, 2021	Year ended March 31, 2022
Deposits	9,66,996.93	10,45,938.56
of which - International Deposits	1,08,583.81	1,18,927.99
Domestic Deposits	8,58,413.12	9,27,010.57
of which- Current Account Deposits	61,609.03	68,779.64
Savings Bank Deposits	3,06,418.54	3,41,343.27
CASA Deposits	3,68,027.57	4,10,122.92
Domestic CASA to	42.87	44.24
Domestic Deposits (%)
Net Advances	7,06,300.51	7,77,155.18
of which- Domestic Advances	6,05,615.80	6,53,381.55
International Advances	1,00,684.71	1,23,773.63
Total Assets	11,55,364.77	12,77,999.83
Net Interest Income (NII)	28,809.02	32,621.34
Other Income	12,933.97	11,483.95
of which-Trading gains	3,375.97	2,728.76
NII + Other Income	41,742.99	44,105.29
Operating Expenses	20,543.66	21,716.44
Operating	21,199.34	22,388.85
Provisions (Other than Tax)	15,643.33	13,002.41
of which- Provisions for NPAs & Bad debts written off	12,407.71	14,640.12
Profit Before Tax	5,556.00	9,386.44
Provision for Tax	4,727.05	2,114.16
Net Profit	828.95	7,272.28
Appropriations/ Transfers
Statutory Reserve	207.22	1,814.34
Capital Reserve	676.90	523.35
Revenue and Other Reserves
I) General Reserve	-341.79	827.40
II) Special Reserve u/s 36
(I) (viii) of the Income Tax Act 1961	286.56	250.00
III) Investment Reserve Account	0.00	0.00
IV) Investment Fluctuation Reserve		2,368.42
V) Statutory Reserve (Foreign)	0.06	14.93
Proposed Dividend	0.00	1,473.84

(Rs. in crore)

Key Performance Indicators	FY 2021	FY 2022
Average Cost of Funds (%)	4.11	3.64
Average Yield on Funds (%)	6.62	6.49
Average Interest Earning Assets	10,64,844	10,77,177
Average Interest Bearing	10,14,762	10,24,804
Liabilities
Net Interest Margin (%)	2.71	3.03
Cost-Income Ratio (%)	49.22	49.24
Return on Average Assets	0.07	0.60
(ROAA) (%)
Return on Equity (%)	1.50	11.82
Book Value per Share (Rs. )	106.72	118.97
Basic EPS (Rs.)	1.78	14.06

Total deposits of the bank increased to Rs.10,45,939 crore during FY 2022 from Rs.9,66,997 crore during FY 2021, there by registered a growth of 8.2% on a YoY basis. The domestic CASA of the bank recorded a growth of 11.4% on YoY basis, to reach to the level of Rs.410,123 crore, during FY 2022. The Domestic Deposit also marked a growth of 8% on a YoY basis, which was increased to Rs.9,27,011 crore, during the FY 2022. The Net advance of the bank increased to Rs.7,77,155 crore during FY 2022 from Rs.7,06,301 crore during FY 2021, there by recorded a growth of 10% during the period. The growth in Advance portfolio was supported by Retail Advance (organic) which grew by 16.8%, Agriculture advance which grew by 10.3%, MSME (organic) segment which grew by 5.4%, on a YoY basis during FY 2022. The net interest margin (NIM) improved by 32 bps to 3.03% during FY 2022 from 2.71% during FY

2021. Operating profit for the Bank rose to Rs. 22,389 crore during FY 2022 from Rs.21,199 crore during FY 2021, an increase of 5.6% during the period.

Total provisions (other than tax) and contingencies declined to Rs. 13,002 crore during FY 2022 by 16.9% from Rs. 15,643 crore during FY 2021. Provisions for Non- Performing Assets (NPA) stood at Rs.14,640 crore during FY 2022 compared with Rs.12,408 crore during FY 2021. The Bank posted a net profit of Rs.7,272 crore during FY 2022 from Rs.829 Crore during FY 2021, marked a growth of 777% on a YoY basis.

Capital Adequacy Ratio (CAR)

(Ratios in %

	As on 31.03.2021	As on 31.03.2022
Capital Adequacy Ratio Basel III	14.99	15.84
CET I	10.94	11.59
Tier I	12.67	13.34
Tier II	2.32	2.50

The Capital Adequacy Ratio (CAR) of the bank increased to 15.84% as on March 31, 2022 from 14.99% as on March 31, 2021. CET-1 ratio also increased to 11.59% during FY 2022 from 10.94% during FY 2021. The consolidated group capital adequacy ratio increased to 16.33% as on 31.03.2022 as compared with 15.74% as on 31.03.2021.

During FY 2022, The Bank issued Additional Tier I (AT-I) capital bonds of Rs.2,749 crore during FY 2022.

Net worth

The Bank?s net worth as of March 31, 2022 was Rs.61,521.92 crore comprising of paid-up equity capital of 1,035.53 crore and reserves of 60,486.39 crore (excluding revaluation reserves, foreign currency translation reserves and other intangible assets). The book value of the share (Face Value 2) was 118.97 as on March 31, 2022

Provisions towards Retirement and other benefits

During FY 2022, the Bank made provision towards contribution to gratuity (Rs. 267.15 crore), pension funds (Rs. 2387.40 crore), leave encashment, additional retirement benefits and other benefits (Rs. 107.78 crore). Total provisions under these categories amounted to Rs.2762.33 crore during FY 2022.

Dividend Distribution Policy

Board of Directors of the Bank has recommended a dividend of Rs. 2.85 per share for the financial year ended March 31, 2022. The total outgo in the form of dividend will be Rs. 1,473.84 crore. The payment of dividend is subject to requisite approvals.

Management Discussion and Analysis Global Economy

The global economy emerged stronger from the Covid-19 pandemic, lifted by pent-up demand and improvement in industrial activity. Further, fast pace of vaccination in many countries supported rapid normalisation of economic activity. GDP growth bounced back from a contraction of 3.1% in 2020 to 6.1% in 2021. The pickup in growth was led by Emerging and Developing Economies (EMDEs) where growth picked up to 6.8% in 2021. Within this group, developing Asia outperformed with GDP growth at 7.3%, led by strong rebound in GDP growth in China and India at 8.1% and 8.9% respectively.

Improvement was also seen in GDP growth in Advanced Economies (AEs), registering growth of 5.2%. This was led by a sharp rebound in GDP growth in the US at 5.7%. On the other hand, growth in Japan remained relatively muted at 1.6% while the Euro area rebounded by 5.3%. Even within Euro Area, GDP growth in France recovered to 7%, while Germany?s GDP expanded by only 2.8%.

There was also significant improvement global growth recovered. World trade volume rose by 10.1%. Here again, EMDEs outperformed, noting a much sharper rebound in trade volumes than AEs. Commodity prices too increased as demand picked up. Oil prices rose by 67.3% led by a pick-up in demand that was not matched by supply due the limited investments made by the oil producers during the pandemic time. Non-fuel prices too increased by 26.8% as supply-chain bottlenecks lingered. As a result, global inflation rose in 2021. Inflation averaged about 3.1% in AEs, and much higher at 5.9% for EMDEs.

Global growth outlook is once again on shaky grounds due to the Russia-Ukraine war. The war has led to a sharp rise in already elevated global commodity prices thus intensifying the inflationary pressures. This has prompted central several countries to cut back on the expansionary monetary policy and turn increasingly hawkish. Debt levels remain at record-high levels in several countries. As a result, global growth outlook has become more uncertain, with risks tilted to the downside. Global GDP growth is projected at 3.6% in 2022. Importantly, growth in EMDEs is expected to slow down to 3.8% in 2022 led by Russia and China. Russia?s GDP is expected to contract sharply by 8.5% as a result of the war and international sanctions on its crucial energy sector. In China, GDP growth is expected to moderate to 4.4% as recent flare-ups in the pandemic and resulting lockdowns, especially some in key industrial areas, threaten to derail industrial activity and put further strain on supply chains. Growth in AEs is also expected to slow down to 3.3% in 2022 led by US, Euro Area and UK. Growth is expected to slowdown in the US as monetary support is withdrawn at a much faster pace. In Euro Area, countries such as Germany and Italy with large manufacturing base and higher dependence on Russian energy imports, growth is expected to slow down markedly. Even in UK, tight financial conditions coupled with high inflation is likely to keep growth muted. Global inflation is also expected to remain elevated at 5.7%.

Indian Economy

India?s economy grew by 8.7% in FY 2022 compared with a contraction of (-) 6.6% in FY 2021. Apart from favorable base, improvement in consumption expenditure (7.9% against -6% in FY'21), investment (15.8% from -10.4% in FY 2021), exports (24.3% compared with -9.2% in FY'21) and imports (35.5% from -13.8%) have contributed the most. Ebbing of the third wave of Covid-19, resumption of economic activities and universal vaccination has supported the growth story. RBI had expected GDP growth at 9.1% in FY'22.

Industrial activity recovered on the back of low base to 11.3% in Apr-Mar?22 compared with a decline of (-) 8.4% in Apr-Mar?21. This was led by manufacturing sector which registered an increase of 11.7% in Apr-Mar?22 (-9.6% in Apr-Mar?21). Mining and electricity activity also improved by 12.2% and 7.9% respectively for the same period. Services activity improved in FY22 on the back of higher GST collections, port cargo volume, rail freight, property sales and domestic passenger. The revival in growth was also positive for the government as the fiscal deficit remained close to the budgeted number at

6.9% in FY 2022. The same for FY 2023 has been targeted at 6.4%. This was achieved mainly due to buoyancy in overall tax revenue which were higher under the revised estimates at Rs.20.79 lakh crore in FY 2022 against a budgeted number of Rs.17.88 lakh crore. Higher outlays on certain essentials like food and fertilizers could be achieved without any untoward pressure on the government finances.

While overall growth did rebound in FY 2022 on the back of favourable base, however the pace of improvement was dampened specially in Q4FY 2022 on the back of global supply chain disruptions on account of Russia-Ukraine war.

CPI inflation moderated to nearly 5.5% in FY 2022 from 6.2% in FY 2021. However, in Q4FY 2022 it had accelerated to 6.3% compared with 4.9% in Q4FY21. It had also edged upwards beyond the MPC?s upper tolerance band during this period. This was on account of supply related disruptions and surge in commodity prices across the globe. Build up in food inflation was visible in Q4FY 2022 at 6.3% as against 3.6% in Q4FY 2021. Even core inflation had edged up to 6.1% in Q4FY 2022 especially on the back of surge in crude oil prices and pick-up in demand.

The external situation was comfortable even though capital flows on account of FPI was strained in the face of the current account balance turning negative. Forex reserves, which is the summary indicator of all developments on this front increased by Rs.40.6 bn to reach Rs.617.6 bn as of March 25, 2022. The rupee, on a point to point basis, ended at Rs.76.18 on 25th March 2022 compared with Rs.72.40 a year back, thus showing a depreciation of 5.2%. This was in line with the depreciation witnessed across most currencies due to the strengthening of the dollar.

Going forward, RBI expects growth at 7.2% in FY 2023. The upside to these estimates stem from the uptick in private investment and boost to domestic demand, also for contact intensive sectors. However, uncertainty due to geopolitical developments with hardening of commodity prices, surge in crude oil prices along with spread of new and contagious.

Covid-19 variants continue to pose a significant risk to these estimates.

Developments in Indian Banking

Credit growth of Scheduled Commercial Banks (SCBs) improved to 9.6% as of March 2022 from 4.6% as of March 2021. This explains steady rebound of the credit off-take.

Industry registered a significant compared with a contraction of (-) 0.4% last year. Across the board uptick was seen for industries with micro and small (21.5% from 3.9% in Mar?21), medium industries (71.4% from 34.5%) reporting a substantial increase. Large industry witnessed a turnaround from -2.5% in FY21 to +0.9% in FY 2022. Credit off-take to services sector reported an increase of 8.9% as of March 2022. Consumer loans too noticed an improvement with much higher growth at 12.4% as of March 2022 from 10.7% in March 2021.

Growth in deposits was slower in FY 2022 at 8.9% as against 11.4% in FY 2021. While growth was higher in FY 2021 due to the pandemic where household?s preferred the safety of bank deposits, the stock market book in FY 2022 did shift household funds to the equity segment as well as mutual funds where expected returns were perceived to be much better in an environment of low interest rates.

During the year the repo rate remained unchanged at 4%. The overnight MCLR came down marginally from 6.55/7.05 as of March 26, 2021 to 6.45/7.00% as on March 25, 2022. The term deposit rate for deposit of above 1 year averaged 4.90/5.50% and 5.00/6.0% respectively. The 10-year Gsec rate increased by around 50 bps from 6.32% to 6.83% during this period. The interest rate environment can be viewed against the background of central government borrowing of Rs.11.27 lakh crore in FY22 (Rs.13.70 lakh crore in FY21) and gross state government borrowing of Rs.6.70 lakh crore (Rs.7.78 lakh crore) in FY 2022.

There was also substantial improvement witnessed in the asset quality of banks which improved to 6.9% as of September. PSBs had a ratio of 8.8% and private banks 4.6%. The annualized slippage ratio for the Banking system as of September 2021 was 3.6%.

In order to enhance liquidity and with the objective to revive sectors, RBI had extended its on tap TLTRO scheme until Dec?21. Further, RBI had also provided fresh support of Rs.50,000 crore to All India Financial Institutions (AIFIs) for new lending. It was also suggested to extend the Priority Sector Lending classifications to Sep?21 as this will ensure credit availability towards the following sectors-Agriculture, Housing and MSME. RBI has also extended to continue to enhance the interim WMA limit for states, so as to help them to manage their finances after facing difficulties during the pandemic, till Sep?21.

RBI had created an on-tap liquidity window with tenors of up to 3-years with objective to boost liquidity and separate window for contact intensive sectors was also proposed at repo rate till Jun?22. In order to facilitate credit transfers, NACH (National automated clearing house) will be made available throughout the week.

RBI enhanced the limit on e-RUPI vouchers issued by Governments to downside Rs.1,00,000/-per voucher from Rs.10,000 earlier, and also allowed its use multiple times. To help finance MSMEs, the NACH mandate limit for TReDS settlements was raised to Rs.3 crore. Transaction limit for payments through UPI for Retail Direct Scheme and IPO applications was also raised from Rs.2 lakh to Rs.5 lakh.

The overall performance of your company should be viewed against this background. improvement at 7.1%

EASE 3.0

EASE reforms agenda has contributed immensely towards the Bank?s journey in achieving efficiency and ease of operations in almost all areas of operations, helping in providing an enhanced experience to its customers.

The action points under each phase of EASE Programme envisaged deep-rooted transformation in approach and building new capabilities.

In Government of India?s EASE 3.0 index, Bank secured the "Second" position among all Public Sector Banks. As per the index, significant progress is themes "Smart Lending for Aspiring India", "Tech-enabled ease of Banking", "Institutionalised Prudent Banking", "Governance and Outcome centric HR" and "Deepening FI and Customer Protection".

Bank ranked ‘First? in categories of "Smart Lending for Aspiring India" and "Institutionalised Prudent Banking" under EASE 3.0 Index.

Bank secured the "second" place in ‘Tech-enabled ease of Banking? and third place in ‘Deepening FI and Customer Protection? categories under EASE 3.0 Index.

EASE 4.0

With innovative technologies & tools such as AI, Automation, data analytics and technical support services, critical back-end functions including document verification, background checks and seamless loan disbursals, making the process not only efficient, paperless and non-cumbersome, but also makes the customer feel in-charge of the entire process. In Government of India?s EASE 4.0 index, Bank secured 1st position for the first three quarters (Q1, Q2, & Q3) of FY 2022 among all the Public Sector Banks.

The Bank topped in the theme i.e. "Smart Lending for Aspiring India" for all the three quarters and improved the performance in the Theme "Governance and Outcome-centric HR".

Project BOB-NOWW: The journey to shape the future Bank of Baroda continues

Last year, Bank of Baroda embarked on a transformation journey - BOB-NOWW - to build an industry-first operating model through new ways of working and a reimagined retail network. Ever since, the project has successfully executed a variety of initiatives, bringing superior, tailored services to our customers, unlocking growth potential across businesses, and creating value for all our stakeholders.

The impact of these initiatives is captured below:

Unlocking business potential: The Bank is enhancing its business offerings across revenue lines with a special focus on Corporate and Wealth verticals. Marquee BOB-NOWW initiatives such as the Corporate Sales War room and Fee Booster Campaign simplified and speeded up processes within the Corporate Banking vertical, contributing significantly towards the 15% YoY growth in overall fee income this year. Next, the spotlight will be on the growing mid-corporate segment, where the Bank plans to strengthen its operating model, branch network and credit decision making process. Meanwhile, the Wealth vertical closed the year with a 46% YoY jump in revenue at INR 317 crore, on the back of superior customer service and improved offerings in its Radiance business. Launching a central Digihub for remote support, a Sales War Room to drive the investment and insurance business and adding new talent further boosted customer-centricity and business focus.

Reimagined retail distribution network: Staying true to its vision of ‘BOB everywhere?, the Bank accelerated efforts to ramp up the total number of touch points, adding significantly to its BC intheBankacrossfive network this year. As of March 2022, the total number of touch points grew to over 41,000, jumping close to 32 percent YOY. It also introduced new-age, compact and digital branch formats to offer seamless customer experience. Furthermore, the expanded BC network and revamped branches are being leveraged to allow easy accessibility to banking services such as home, auto and personal loans, credit cards, current accounts, etc., in rural areas.

Digital led experience: The Bank moved a step closer to its goal of digitizing critical banking services and processes, starting with the launch of 25 self-assisted customer journeys that enable faster and straight-through processing for transactions. It also piloted a video servicing solution for customers at its NRI centres and plans to soon introduce the tool at other touchpoints. Finally, several key offices have digitized certain approval processes through the paperless office initiative, bringing transparency and accountability to their operations.

New ways of working: Adopting digital channels allows for improved productivity and efficiency among the Bank staff and helps customers solve queries swiftly. To make this possible, several BOB-NOWW campaigns this year focused on adding customers to the Bank?s flagship module app bob World. As a result, in FY 2022, the app added 1 Cr + customers, a feat achieved through successive campaigns and the collective efforts of branch employees and BCs. The total number of app activations presently stands at 2 Cr +, with a goal of reaching the 3 Cr + mark in FY 2023.

Business Performance

The highlights of business performance of the bank are as below:

Operating Performance

The highlights of operating performance of the bank are as below:

(Rs. in crore)

Particulars	Year ended March 31, 2021	Year ended March 31, 2022
Interest Earned	70,495.06	69,880.78
Interest Expended	41,686.04	37,259.44
Net Interest Income (NII)	28,809.02	32,621.34
Other Income	12,933.97	11,483.95
Trading Gains	3,375.97	2,728.76
Operating Income (NII + Other Income)	41,742.99	44,105.29
Operating Expenses	20,543.66	21,716.44
Particulars	Year ended March 31, 2021	Year ended March 31, 2022
Employee Expenses	11,445.53	11,978.84
Other Operating Expenses	9,098.13	9,737.6
Operating Profit	21,199.34	22,388.85
Provisions (Other than Tax)	15,643.33	13,002.41
of which-Provisions for NPAs and Bad debts written off	1,2407.71	1,4640.12
Provision for Standard Advances	2,158.03	-2,672.26
Provision for Depreciation on Investment	879.44	558.98
Other Provisions	198.16	475.57
Profit Before Tax	5,556.00	9,386.44
Provision for Tax	4,727.05	62,114.16
Net Profit	828.95	7,272.28
Key Performance Indicators	FY 2021	FY 2022
Cost of Deposits - Global (%)	4.01	3.52
Cost of Deposits - Domestic (%)	4.44	3.85
Cost of Deposits - International (%)	0.95	0.48
Yield on Advances - Global (%)	6.98	6.79
Yield on Advances (Domestic) (%)	7.83	7.61
Yield on Advances (International) (%)	2.48	2.18
Net Interest Margin - Global (%)	2.71	3.03
Net Interest Margin - Domestic (%)	2.79	3.09
Net Interest Margin - International (%)	1.29	1.47
Cost-Income Ratio (%)	49.22	49.24
Return on Average Assets (ROAA) (%)	0.07	0.60
Return on Equity (%)	1.50	11.82

The interest income of the bank stood at Rs.69,881 crore during FY 2022. Interest expenses decreased by 10.6%, reached to the level of Rs.37,259 crore during FY 2022. The Global cost of deposit decreased to 3.52% and Global yield on advances stood at 6.79% during FY 2022. The Global Net Interest Margin (NIM) improved to 3.03% during FY 2022 from 2.71% during FY 2021.

The cost of deposits in domestic book decreased to 3.85% and to 0.48% in the international book during FY 2022. The Yield on Advance in domestic book stood at 7.61% and in International book stood at 2.18% during FY 2022.

Net Interest Income (NII) for the Bank increased to Rs.32,622 crore during FY 2022 from Rs.28,809 crore during FY 2021. Other income of the bank stood at Rs.11,484 crore during FY 2022. The Fee income of the bank increased Rs.6,409 crore, registered a growth of 12.6% during FY 2022. Recovery from written-off accounts stood at Rs.2,510 crore, during FY 2022. Employee costs during FY 2022 was Rs.11,979 crore whereas other operating expenses stood at Rs. 9,738 crore during the period. The Operating expenses of the bank stood at Rs.21,716 crore during FY 2022. The Operating profit of the bank increased to Rs.22,389 crore during FY 2022 from Rs.21,199 crore during FY 2021.

Provisions for Non- Performing Assets (NPA) stood at Rs.14,640 crore during FY 2022. The Bank posted a net profit of Rs.7,272 crore during FY 2022 from Rs.829 Crore during FY 2021, marked a growth of 777% on a YoY basis.

Resource Mobilisation (Rs. in crore)

SL No Particulars	As on 31.03.2021	As on 31.03.2022
I Total Deposits	9,66,996.93	10,45,938.56
II International Deposits	1,08,583.81	1,18,927.99
III Total CASA	3,88,282.22	4,33,605.23
IV Total Current Account Deposits	78671.42	88861.21
V Total Savings Bank Deposits	309610.80	344744.02
VI Global CASA %	40.15	41.46
VII Domestic Deposits	8,58,413.12	9,27,010.57
VIII Domestic CASA Deposits	3,68,027.57	4,10,122.92
IX Dom. Current Account Deposits	61,609.03	68,779.64
X Dom. Savings Bank Deposits	3,06,418.54	3,41,343.27
XI Domestic CASA %	42.87	44.24

Global Deposits and Global CASA

Total Deposit of the Bank increased to Rs.10,45,939 crore during FY 2022 from Rs.9,66,997 crore during FY 2021, there by recorded a growth of 8.2% during the period. The International Deposit of the Bank also increased to Rs.1,18,928 crore as on 31.03.2022 from Rs.1,08,584 crore as on 31.03.2021, recorded a growth of 9.5% on a YoY basis.

The global CASA of the bank increased to Rs.4,33,605 crore as on 31st March 2022 from the level of Rs.3,88,282 crore as on 31st March 2021, registered a growth of 11.67% during the period. The global current deposit of the bank increased to Rs.88,861 crore as on 31st March 2022 from Rs.78,671 crore as on 31st March 2021, marked a growth of 12.95% during the period. The global Savings deposit of the bank increased to Rs.3,44,744 crore as on 31st March 2022 from Rs.3,09,611 crore as on 31st March 2021, recorded a growth of 11.35% during the period. The global CASA % to global deposit improved to 41.46% from 40.15%, increased by 131 bps, during the period.

Domestic Deposits and Domestic CASA

Domestic Deposit of the Bank increased to Rs.927011 crore as on 31.03.2022 from Rs.8,58,413 crore as on 31.03.2021, registered a growth of 8% during the period.

Bank?s domestic CASA deposits increased by 11.4% and rose to Rs.4,10,123 crore as on March 31, 2022. Domestic CASA ratio of the bank to the domestic deposit improved to 44.24% during FY 2022 from 42.87% during FY 2021, increased by 137 bps. Current Account deposits registered growth of 11.6% and reached to Rs. 68,780 crore, while Savings Bank deposits reached to Rs. 3,41,343 crore with an increase of 11.40% as on 31.03.2022.

Low cost deposit mobilization initiatives

During the FY 2022, Bank opened 1.18 crore new CASA accounts. Within this, the thrust was for opening accounts in paperless mode using Tablets (TAB) and increasing penetration of Video Based Customer Identification Process (VCIP) mode of account opening. Bank also launched New Products suiting to specific segments of customers viz. B3 DIGITAL ONLY SAVINGS ACCOUNT, BARODA SINGLE NODAL SAVINGS ACCOUNT FOR GOVT. BODIES. Extensive focus was given on Government business relationships and acquiring new accounts particularly SNA accounts of Centrally sponsored schemes across States - Bank has opened 169 SNA Accounts up to 31.03.2022. Special Emphasis was given for Increasing penetration of Key CASA enablers like POS, IPG& BCMS and activation of dormant account. In Digital front, Bank has increased penetration of client acquisition through digital channels like VCIP, TAB & Digital ONLY accounts and during the FY 2022, 64,480 VCIP Savings Accounts, 34,134 B3- Digital only A/c were opened. Also out of 2,18,828 Current Accounts opened during the year, 1,35,469 Current Accounts (74.68% of eligible Current Accounts opened) and out of 53,89,352 Non FI Savings accounts opened during the year, 50,46,885 Non FI Savings Accounts (95.53% of eligible Non FI Savings accounts opened) were opened through TAB during FY 2022.

Bank?s integration with the Ministry of Corporate Affairs Portal for opening Current Accounts of newly formed Companies has yielded opening of 5,591 current accounts during the year. Bank has setup a separate Defence Banking Vertical headed by Chief Defence Banking Advisor in the Cadre of Retired Lieutenant General and ably supported by Deputy Defence Banking Advisors posted at key locations to penetrate the Defence segment.

Banking is leading from front in extending Door Step Banking Services through the PSB Alliance Door Step Banking Services. Bank has successfully completed 1,13,733 Door Step Banking service requests during FY 2022.

Baroda Cash Management Services

The Bank?s cash management business, Baroda DigiNext, provides a wide range of Omni-channel digital solutions for Corporate and Government Customers for management of their cash flows and liquidity. Baroda DigiNext provides valuable information on real-time basis of all payments and receipts - electronic, cheques and cash deposits at all its branches. The solution is used in key Government initiatives like Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana, digitization of land records and Agricultural Produce Market

Committee (APMC) collections. Bank of Baroda is amongst the only two major banks that are fully integrated with Integrated Financial Management and Human Resource Management System (IFHRMS) a key initiative for management of State Government treasury.

Baroda DigiNext Cash Management continues to rapidly expand its footprint acquiring a record 1,900+ new large corporate and government relationships in FY 2022. Over 4,800 large customers of the bank utilized Bank?s cash management services for over 5.50 crore transactions during the year."

Credit Expansion

The global gross advance of the bank increased to Rs.8,18,120 crore during FY 2022 from Rs.7,51,590 crore during FY 2021, thereby registering a growth of 8.9% on YoY basis. The gross domestic advance increased to Rs.6,84,153 crore as on 31st March 2022 fromRs.6,41,076 crore as on 31st March 2021, there by marked a growth of 6.7% during the period. The growth in advance portfolio of the bank was supported by Retail loan segment (organic) which increased to Rs.1,40,399 crore, grew by 16.8%, Agriculture which increased to Rs.1,09,796 crore, grew by 10.3%, MSME segment (organic) which rose to Rs.96,863 crore, grew by 5.4% on a YoY basis. Within Retail Portfolio, personal loan at Rs.9,748 crore registered a growth of 108%, Home Loans (organic) at Rs.82,009 crore registered a growth of 11.3%, Auto loan (organic) at 25,130 crore marked a growth of 19.5% and Educational Loan at Rs.6,731 crore marked a growth of 16.7% on a YoY basis.

The international gross advance of the bank increased to Rs.1,33,968 crore during FY 2022, from Rs.1,10,514 crore during FY 2021, there by registered a growth of 21.2% on a YoY basis.

The Bank was highly benefited from its focused effort on digital front to source additional business along with its branch banking business model. The Digital lending platform of the bank has a special focus to improve its business in Retail Loan, MSME and Agri segment. The Bank has digitalized the renewal process of small ticker MSME loans covering around 70% of Bank?s portfolio by number. In Retail loan segment, bank has launched end to end STP process upto disbursement for personal loan up to 10 lakh using fully digital metrics. In Agri segment, the Bank has launched Digital journey for Gold Loan to provide enhanced banking experience of the customers. The BOB-BOWW, BoB World, digital lending platform (DLP), social media handles, whatsApp Banking, digital loan services, tie-up with major market players from different fields etc have helped the Bank to generate additional business and to increase its brand value & customer base.

Corporate Credit

Corporate credit in the Bank is serviced through 15 Corporate Financial Services (CFS) branches which manage approximately 84% of the total standard corporate credit portfolio of the Bank. The corporate credit portfolio of the Bank increased to Rs.3,00,693 crore as on March 31, 2022. With revamp in approach towards corporate credit delivery, the risk profile of the portfolio further improved during FY

2022 as observed in the rating distribution of domestic credit portfolio as below:

Credit Rating Distribution*	As on 31.03.2021	As on 31.03.2022
A and above	73%	78%
BBB	11%	10%
Below BBB	8%	6%
Unrated	8%	5%

 

*External Rating Distribution of Domestic Advances above Rs.50 crore

Total portfolio comprising of A and above in FY 2022 was 78% as against 73% in the previous year.

To provide relief to the borrowers impacted by COVID-19, Bank introduced various Guaranteed Emergency Credit Line (BGECL) Schemes in line with government schemes under which overall Rs. 1,682 crore was sanctioned to corporate borrowers and out of which Rs.1,294 crore was disbursed as of 31st March 2022. Under Credit Guarantee Scheme for MFI, Rs.1,067 crore was sanctioned and disbursed. Further, under Scheme for Financial Assistance to the project proponents for enhancement of ethanol distillation capacity or to set up distilleries for producing 1st generation ethanol from feed stocks Rs.635 crore was sanctioned and out of which Rs.126 crore has been disbursed.

Target market approach

The Bank follows a target market approach which has the following features:

? ?Identification of industries / sectors for growth based on industry outlook i.e. the combined output of various industry parameters including market size, growth, demand-supply outlook, cost structure, competition, financial performance, government policies and investment outlay.

? Sector-wise business plan for target market lending, based on exposure caps, existing exposures and further appetite for fresh acquisitions.

? Detailed account planning with structured calling plans for meetings, identifying business opportunities, approval and closure.

? Execution of the business plan under target market approach through dedicated relationship managers across the Bank.

? The Bank focuses on overall yield from the customer rather than interest income by offering ancillary services like supply chain finance, value chain finance, facility and other retail products.

The Bank also plans to set up Mid Corporate branches across the country for quick processing of corporate proposals and tap the opportunities available in the Mid Corporate Segment.

MSME Credit

The MSME portfolio of the Bank stood at Rs.1,00,131 crore (excluding TWO) as of March- 2022. The Bank added 2.55 lakh MSME customers during FY 2021-‘22. Bank implemented various schemes to provide liquidity support to MSMEs affected by COVID-19 pandemic and to improve Bank?s MSME business in general, some of such initiates are as follows;

1. ECLGS: Bank sanctioned Rs.14,864 crore and disbursed Rs.12,587 crore under Emergency Credit Line Guarantee Scheme (ECLGS) till 31st March 2022.

2. Credit Outreach Programme: As per the initiative of DFS, the Bank had launched Credit Outreach Programme on Pan India basis from 16th October to 30th October, 2021, with 18 mega outreach Programmes conducted at various locations in UP, Rajasthan, Gujarat and Daman & Diu where our Bank is SLBC / UTLBC convener. During the programme period (16.10.21 to 30.10.21), the

Bank sanctioned MSME loans to 17,282 beneficiaries amounting to Rs.1,185 crore.

3. MSME Utsav campaign: The MSME Utsav campaign started in the month of October 21 concluded on 31st March 2022. The details of the business mobilised by the Bank during the campaign are as under;

? Added 12,026 number of New to Bank (NTB) clients in our fold with an approximate disbursement of Rs. 8,610 Crore, out of which 10,328 NTB clients were canvassed with ticket size of less than Rs.1 crore.

? Also 9,795 numbers of MICRO New to Bank customers have been added during this campaign.

4. Agreement with PAISALO Digital Limited:

? The Bank has entered into a co-lending pact with non-banking financial company Paisalo Digital to provide small-ticket business loans to women entrepreneurs & MSMEs.

? The partnership will provide access to small-ticket finance for income generation to Micro, Small and Medium Enterprises (MSMEs) and women entrepreneurs.

? The Co-Lending arrangement will leverage Bank of Baroda?s low cost of funds and credit assessment expertise, combined with Paisalo?s rule engine-based loan origination and underwriting capabilities. This will be done with the help of an end-to-end digital platform for sourcing, servicing and recovery of small-ticket income generation priority sector loans.

? 232 sanctions have been conveyed to beneficiaries amounting to Rs.1.12 crore at the time of launch.

5. Analytics-based and technology enabled canvassing of MSME business from existing MSME customers: Under this initiative, customers who are availing only term loan facility, were pitched for CC/OD accounts through our dedicated outbound contact center executives. We have done cross selling of working capital facilities to 307 existing Term loan customers to the tune of Rs.162.17 crore. We will be going for cross selling of Term loan Facility to existing Working Capital customers through similar process.

6. PMMY loans are sanctioned through Digitalized mode.

7. Bank entered into MoU with Tata Power for financing solar power systems up to 2 MW, used by MSME units

8. Area Specific Scheme has been launched for Small Scale Distributed Solar Power Generating Units in the State of Gujarat.

9. Bank introduced ‘Baroda Energy Efficient Project (BEEP) finance? scheme based on MoU with SIDBI for World Bank assisted ‘Partial Risk Sharing Facility (PRSF) for Energy Efficiency Project?.

10. MoU with National Small Industries Corporation - As per this MoU, NSIC shall provide MSME leads to our Bank and Bank have to share 50% of its processing fee with NSIC only for the cases where loan is sanctioned to the borrower.

Bank has a specialised vertical for supply chain business for providing liquidity support to various constituents with high focus on MSMEs. Bank?s supply chain business is a supply chain solution to extend short term working capital finance on a digitized and automated platform, providing real time alerts, reports and end-to-end automated reconciliation.

The on-boarded limits for MSME segment stood at Rs.1,464.45 crore out of total limits of Rs.2,601.45 crore under Supply Chain Finance portfolio as on 31st March 2022.

Retail Credit

The retail assets of the bank increased to Rs.1,50,253 Crore as on 31st March 2022 from Rs.1,32,564 Crore as on 31st March 2021 thereby posting an overall growth of 13.34%. Organic Retail Loans (excluding portfolio purchase) increased to Rs.1,40,399 Crore, an increase of 16.75% over the previous year. Retail assets formed 21.82% of domestic advances as on 31st March 2022.

The key highlights of retail business in FY 2022 include:

Bank?s Mortgage-based loan book (Home, Mortgage and Rent Receivables) stood at Rs.106844 Crore as on 31st March 2022.

Within Retail segment Organic Auto, Education and Home loans posted an increase of 19.49%, 16.74% and 11.25% respectively.

Personal Loans Book of Bank increased at 108.07%.

Bank opened 9 new Specialised Mortgage Stores (SMS), with that increased to 135 SMSs as on 31st March 2022. These stores are located all across the country to deliver specialised and faster mortgage-based retail credit delivery.

During the Loan Sanction Cell (ELSC), with that increased to 11 ELSCs as on 31st March 2022, to focus on Education Loan in key cities.

Bank has commenced DST channel to fulfil leads for increase in Retail Loans.

Bank has Tie-up with Centrum Housing Finance Limited (CHFL) for Co-lending in Home & Mortgage Loan.

Bank has partnership with Maruti, Hyundai and OLA for generation of vehicle loans leads through integration with their portal.

Customers can now apply for Retail Loans i.e. HL, AL, ML and EL Loan against deposit loans through Website, Net Banking & Mobile Banking channels.

Developed special scheme specific product under various Govt Programme i.e. PMAY, Electric Vehicle, Student Credit Card, Defence Personnel.

Under the Digital Lending platform, in-principle approval for retail loan products such as Home loan, Personal loan and Auto loan is now being done online. Bank is offering end-to-end online Micro & Mini Personal loans upto Rs.50,000 & Rs.5,00,000 respectively to its liability customers. Baroda Personal Loan to Government Employees Salary Account customers and pre-approved loan for liability customers were launched during the year.

Revamped Education loan scheme in line with IBA model scheme with added features.

Revamped other Retail Loans and made them more competitive and customer friendly.

Rural and Agricultural Lending

Bank has a network of 8,168 domestic branches of which 4,927 rural and semi urban branches are leveraged fully for priority sector and agriculture lending. The Bank?s agriculture advances increased to Rs.1,09,796 crore as on 31st March 2022.

Bank is the convener of State Level Bankers? Committee (SLBC) in 3 states i.e. Uttar Pradesh, Gujarat and Rajasthan and Union Territory Level Bankers? Committee (UTLBC) in 1 Union Territory of Dadra and Nagar Haveli and Daman and Diu. Bank also shoulders the Lead Bank responsibility in 67 districts across the country.

Bank continues to be the leader in lending to agriculture sector which received an impetus with the Government?s vision of "Atmanirbhar Bharat". The Bank has moved beyond granting simple farm credit to a more diversified rural lending strategy to encourage capital generation to farmers and build a robust infrastructure in agriculture and Animal Husbandry. We are focusing more on newly introduced products such as Agriculture Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund Scheme (AHIDF), PM Formalisation of Micro Food Processing Enterprises (PMFME), Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan Scheme (PM Kusum), Pradhan Mantri Matsya Sampada Yojana Scheme (PMMSY) and compressed biogas products. yearBankopened9newEducation Bank continues to focus on its flagship products like Kisan Credit Card (KCC), Gold Loans, Farm mechanisation (Tractor loans), Horticulture loans, Financing to Self Help Groups (SHGs), Financing to Farmer Producer Organisation (FPO)/ Farmer Producer Company (FPC), Hi-tech Agriculture and Food and agro-processing. During the year, the Bank has issued 2.75 lakh new KCC of which 0.80 lakh Animal Husbandry and Dairy (AHD) KCC issued to farmers engaged in animal husbandry and fisheries activities under the ambit of KCC mechanism. As part of its microfinance initiatives, Bank has credit linked 92,615 SHGs by granting loans amounting to Rs. 2,782 crore during FY 2022.

Bank is encouraging tie ups with various Government agencies like State Rural Livelihoods Mission (SRLMs) and other private partners to enhance credit linkage of SHGs. To improve Turnaround Time and to enable hassle free instant Savings Bank Account opening for SHGs, TAB banking has been introduced from 01.01.2022 onwards. In Tractor loans, rate of interest has been linked with LTV of Tractor for the convenience of farmers. In Digital Front, we have introduced digital journey for Gold Loan to farmers and in-principle sanction journey for Kisan Credit Card.

Bank has introduced Centre for Agriculture marketing and Processing (CAMP), a dedicated centralized centres for processing of agriculture loans with a special focus on non-traditional and high value Agri advances. In the first 5 months of its inception CAMP has sanctioned loans to -10216- farmers amounting Rs.952.85 crore.

Bank has organised its unique annual customer outreach programme "Baroda Kisan Phakwada" in the month of October aligning with "Credit Outreach" Programme promoted by Government of India. Total of 7,623 events were organised during the "Baroda Kisan Pakhwada" in which 1.59 lakh farmers were participated. Under Credit outreach programme Bank has sanctioned Rs.3,660.88 Crore to 1,75,722 farmers under various agricultural products.

Priority Sector Lending

Priority sector advances of the bank increased to Rs. 2,60,818 crore during FY 2022 from Rs.2,49,196 crore during FY 2021, marked a growth of 4.66 % on a YoY basis. Bank achieved the mandatory targets under all the categories of Priority Sector Lending segments as on 31st March 2022.

Advances to SC/ST Communities

The outstanding advances to Scheduled Caste/ Scheduled Tribe (SC/ST) communities went up to Rs. 14,469 crore as of 31st March 2022. The SC/ST communities accounted for 19.87% share in total advances granted to weaker sections by the Bank.

Further, special thrust being laid by the Bank in financing SC/ST communities under various Government sponsored schemes such as National Rural Livelihood Mission (NRLM), MUDRA Loan, Startup India and Stand-Up India. Bank is exploring possibilities of entering into tie-ups with various State Rural Livelihood Missions (SRLMs) for providing finance to women SHGs to further the mission of women empowerment.

Gold Loan

Bank?s gold loan portfolio increased to Rs.29,316 crore as on 31st March 2022 from Rs.23,593 crore, by registering a growth of 24.26% on YoY basis. Within gold loan portfolio, Agriculture gold loan grew by 24.25% to Rs.27,946 crore in FY 2022 from Rs. 22,492 crore in FY 2021. Retail gold loan increased to Rs.1,371 crore in FY 2022 from Rs.1,101 crore in FY 2021, registered a growth of 24.52%. During the year, the Bank has added 363 new gold loan disbursing branches taking total number of Gold Loan designated branches to 5,601 in FY 2022 from 5,238 branches in FY 2021. The increase in spread of Gold loan designated branches across the country with share of geographies other than southern parts stands at 25.18% in FY 2022 as compared to 22.65% in FY 2021. The number of Women beneficiaries of gold loan accounts increased to 8,13,502 in FY 2022 from 6,91,029 in FY?21, added 1,22,473 new such accounts during the year. The contribution of Agri Gold Loan in total Agriculture advances increased to 25.14% in FY 2022, which was at 22.30% in FY 2021. Average ticket size of gold loan increased to Rs.1.46 lakhs in FY 2022 from Rs.1.36 lakhs FY 2021. Average amount of gold loan per branch increased to Rs.5.23 crore in FY 2022 from Rs.4.51 crore in FY 2021. Credit quality of Gold Loan portfolio remained healthy with GNPA ratio of 0.26% as on 31st March 2022.

During the financial year the Bank has launched Digital Gold Loan with In principal sanction approval to the customers. The Bank has also launched Gold Loan eligibility calculator based on carat wise gold jewellery on our Bank?s website for existing as well as prospective customers. The Bank has introduced Aatmanirbhar Women Scheme exclusive for women customers, in order to increase women beneficiaries in gold loan segment.

Financial Inclusion (FI)

In order to provide universal banking services to all sections of the society especially to rural, semi-urban and urban poor at an affordable cost, Bank has taken financial inclusion as a social commitment and also an opportunity to tap business through BC model. The Bank has been actively working towards ensuring financial inclusion in the country through its branch and BC network. With the advent of technology, innovative steps are being taken for serving in unbanked areas. Bank expanded its BC network by additional 16,018 BCs to 39,338 BCs as on March 31, 2022 to cater to rural, semi urban and urban areas across the country. The Bank took the following initiatives towards promoting financial inclusion:

? ?Enabled Micro insurance enrolment through various channels such as missed call / net banking / mobile banking/ SMS/ BC / branch. Introduced online claim lodgement and settlement facility for both PMJJBY & PMSBY in association with the Insurance Partners.

? Introduced new services at BC point viz., printing of self-service pass books, NEFT, TD renewal, online lead generation for Agri, MSME, retail assets, Credit cards & Retail liabilities.

? Bank is one of the implementing Agencies of BC Sakhi project of Uttar Pradesh State Rural Livelihood Mission (UPSRLM).

? Bank has signed MOU with RBIH (RBI Innovation Hub) as a scale up partner for its ‘Project Swanari? that is intended to encourage women startups.

Performance highlights under financial inclusion during

FY 2021-22

? Basic Saving Bank Deposit (BSBD) accounts increased by 56.48 lakh (9.57%) and deposits increased by 4,342 crore (18.46%).

? Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts increased by 59.92 lakh (12.13%) and PMJDY deposits increased by 3,977 crore (21.34%).

? The Bank?s share in comparison with PSBs stood at 15.60% for PMJDY accounts and 17.42% for deposits under PMJDY accounts.

? The zero balance PMJDY accounts of the Bank increased to 5.75 % as on 31st March 2022 as against 5.30% as on 31st March 2021.

? Enrolments in micro insurance during the financial year increased by 52 lakh numbers and reached to 3.12 crore as on 31st March 2022.

Performance of RRBs sponsored by Bank of Baroda

The Bank sponsored three Regional Rural Banks (RRBs) namely Baroda U.P. Bank, Baroda Rajasthan Kshetriya Gramin Bank and Baroda Gujarat Gramin Bank in the state of Uttar Pradesh, Rajasthan and Gujarat respectively. The aggregate business of these three RRBs rose to Rs. 1,33,080 crore as on 31st March 2022 from Rs.1,23,427 crore as on 31st March 2021. The three RRBs together posted a net profit of Rs. 594 crore during FY 2022, increased by 84.47 % as compared with net profit of Rs. 322 crore during FY 2021. The net worth of these RRBs put together improved to Rs. 4,986 crore as of 31st March 2022 from the level of Rs.4,289 Crore as of 31st March 2021.

Stressed Asset Management

The Bank believes that continuous day-to-day monitoring is the first step ensuring good recovery. For this, the Bank undertook various steps and formulated strategies to augment recoveries and reduce slippages. Bank has strategies to touch each and every NPA account in a scientific manner. Hence Bank has created special skill set under an Apex Vertical ‘Stressed Assets Management Vertical?, at Corporate Office. In this vertical -5- Stressed Assets Branches (SAM) were set up with special skill set to cater all accounts under National Company Law Tribunal (NCLT), -16- Stressed Assets Recovery Branches (SARB Branch) at zonal level were established to handle NPA accounts other than NCLT with outstanding balance above Rs.5 crore. These Branches are under direct supervision of corporate office to reduce TAT. Further -66- Stressed

Assets Recovery Branches (SARB Branch) at Region level were established to handle NPA accounts with outstanding balance above Rs. 50 lacs to Rs. 5 crore.

Under Govt of India Digital Initiative, Bank has taken several steps for end to end digitalisation of the entire recovery and monitoring procedure without paper movement and Real Time basis. In this connection,

1. "QLICK" It picks several data points from FINACLE on real time basis without manual intervention and calculates Days Past Due (DPD) Report, NPA Movement Chart and Mock Runs - for forecasting daily degradations.

2. "ILMS" Mobile app and Desktop based portal which is an online repository of entire NPA a/cs irrespective of amount. It provides online 360 degree live monitoring of accounts without any manual intervention, like SARFAESI status, DRT/NCLT status, Provisioning, Daily Recovery, lawyers performance analysis and online submission/ sanction of OTS.

3. An application called One Time Settlement Tracking System has been implemented wherein customers can initiate settlement proceedings online. Bank has developed Automated Collection System (ACS) Mobile application - for taskforce staff on the field to collect the amount based on allocation of the accounts in the system and also update recovery details. Bank has an automated early warning system to identify the stress at the earlier stage so as to take timely remedial measures to address the stress and has a robust collection mechanism.

4. A new e-auction platform, eBkray was used for sale of properties under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) & banks success rate under SARFAESI is 38%.

5. Several Digital initiatives are under process like Geo tagging, TAT analysis etc.

The movement of NPAs during the last two years is as under:

(Rs. in crore)

Particulars	FY 2021	FY 2022
Gross NPA	66,670.99	54,059.39
Gross NPA (%)	8.87%	6.61%
Net NPA	21,799.88	13,364.64
Net NPA (%)	3.09%	1.72%
reduction in non-performing loans and in Additions to NPAs	20,005.12	14,255.33
Recovery/ Upgradations	7,290.05	8,448.15
Write offs including TWOs	14,877.64	17,966.81
Recoveries in write off accounts	2,985.00	2,510.00
Provisional Coverage Ratio (including TWO) (%)	81.80%	88.71%
Provisional Coverage Ratio (excluding TWO) (%)	67.30%	75.28%

As per assetclassification,the bifurcation of loan book is as given below:

(Rs. in crore)

Asset Category	FY 2021	FY 2022
Standard Advances	6,84,919.17	7,64,061.10
Gross NPA	66,670.99	54,059.39
Total Gross Advances	7,51,590.16	8,18,120.49
Gross NPAs comprising
Sub-standard	15,056.08	5,280.47
Doubtful	35,526.49	31,512.32
Loss	16,088.42	17,266.60
Total Gross NPA	66,670.99	54,059.39

Bank believes in Nation Building by extending hands to stressed entrepreneurs through restructuring as per RBI guidelines.

In order to address the large number of small NPA accounts, Bank continued with its special One-Time Settlement (OTS) scheme "Lakshya-II - MSME, Retail and Agriculture" for settlement of NPAs in these segments and "Rin Chukaao Shaan Se Jio" for settlement of NPAs in Doughtfull, Loss, PWO accounts. The Bank recovered and upgraded NPA accounts amounting to Rs. 285 crore & Rs. 370 crore under these schemes.

To have better and targeted monitoring mechanism & reduction in SMA - I & SMA - II accounts of large corporate are being monitored by Stressed Asset Management Vertical to find out the resolution and exploring all prospects of recovery, up gradation.

International Banking

The Bank has 94 overseas branches/offices across 17 countries comprising of 41 overseas branches/offices ( including 1 International Banking Unit in GIFT City, Gandhinagar, Gujarat, India, 9 EBSUs in UAE and 1 Mobile Banking Unit in Mauritius), 53 branches of the bank?s 7 overseas subsidiaries. In addition, the Bank has one Joint Venture viz. India International Bank (Malaysia) Bhd. in Malaysia and one associate bank viz. Indo Zambia Bank Ltd. in Zambia with 30 branches.

The Bank has presence in the world?s major financial centers of New York, London, Dubai, Singapore and Australia. In the international arena, Bank pursues a strategy of driving growth and value by meeting the international banking requirements of Indian corporates; catering to India linked cross-border trade flows for Indian and locally incorporated companies or firms and being the preferred Bank for NRIs/ Persons of Indian Origin.

Looking into the available business opportunities, Bank has also diversified the advances on Non-India related syndication loans in the primary and secondary market. Also, various new products have been launched to broaden the product basket.

Bank has a wholesale branch in GIFT City (SEZ), Gujarat, India which is treated as an offshore banking unit and has chosen the branch as a center for business growth taking into consideration the immense business potential, tax advantage, Government initiatives etc. Bank has taken various proactive steps in creating world class infrastructure for the branch in IFSC including state of the art dealing room for International treasury of global standard at GIFT city.

Further, in overseas centers, substantial progress was made in IT up gradation for end-to-end business solution, with a focus on digitization and centralization, to improve productivity and customer experience. Bank is continuously integrating multiple platforms of technology to generate synergies.

In line with directives of Government of India, Bank has strategically undertaken rationalization of its overseas presence based on a comprehensive evaluation framework. As part of this exercise, during the year, Bank had closed its operations in Hong Kong and South Africa. The Bank is continuously consolidating and re-organising its International Operations in line with the new global environment and focused on rebalancing the portfolio with a view to manage risks, shed low-yield assets and increase profitability.

As of 31st March 2022, the Bank?s total business (net) from international branches was Rs.2,42,702 crore and constituted 13.31% of the global business. Total deposits were at Rs.1,18,928 crore while net advances were Rs.1,23,774 crore.

Treasury Operations

The Bank operates its treasury operations from a state of- the-art dealing room at its Corporate Office in Mumbai.

The treasury is a prominent player in various markets such as foreign exchange, interest rates, fixed income, money of market, derivatives, equity, currency and interest rate futures and other alternate asset classes. The Bank offers various services like interest rate swaps, currency swaps, currency options and forward contracts through authorised branches dealing in foreign exchange across India.

Treasury maintains the regulatory requirements of CRR and Statutory Liquidity Ratio (SLR) and manages the surplus/ deficit funds. Treasury borrows/invests in money market and capital market instruments as part of fund management operations. The total size of the Bank?s domestic investment book as of 31st March 2022 stood at Rs. 3,04,062 crore. The share of SLR securities in total investments was 82.71%. The percentage of SLR securities (unencumbered) to Net Demand and Time Liabilities (NDTL) as of 31st March, 2022 was at 21.93%. The Bank capitalised on the opportunities offered by yield movements. The Bank managed its portfolio efficiently maintained yields on total investment for FY 2021-22 at 7.26% (including profit on sale). During FY 2022, the profit on sale of investment and foreign exchange earnings were Rs. 2,702 crore and Rs. 714 crore respectively.

Government Business portfolio by taking exposure

The Government Business Vertical is an important part of the bank?s strategy. It caters to the Banking requirements of Central/State Government and PSUs across India.

We handle payment of Central Government and State Government pensions, postal transactions, Treasury/sub- Treasury transactions, Public Provident Fund scheme, Senior Citizens? Saving Scheme, Sukanya Samriddhi Yojana, National Pension System, Atal Pension Yojana, e-Kisan Vikas Patra, RBI bonds, Direct Tax collection (CBDT), CBEC, ESIC, MHFW, GST, e-stamping and Sovereign Gold Bonds.

We also facilitate opening of Accounts of various State/ Central Government organizations and helps in mobilizing CASA deposits for the Bank. We also focus on offering various services such as onboarding of our customers to GEM portal, PFMS etc. which in turn helps us in establishing new relationships and canvassing CASA.

Our Bank is an accredited banker to the Ministry of Health and Family Welfare and Ministry of Legal Affairs.

Our main focus is on providing the allied services i.e. on boarding of Govt. departments on PFMS Portal, canvassing Govt, CASA accounts, monitors all the branches conducting Government business and provide endless support to their queries and address their doubts. We are constantly motivating all the branches through various Campaigns to fetch in more business.

Appreciations from Government bodies;

a) Bank has received appreciation letter from Pension Fund Regulatory & Development Authority (PFRDA) Government of India for the commendable efforts in various Atal Pension Yojna (APY) campaigns launched in Q1 & Q2 FY 2022.

b) Bank has received appreciation letter from Pension Fund Regulatory & Development Authority (PFRDA), Government of India for exemplary performance in Atal Pension Yojna (APY) enrollments in FY 2022.

c) Bank has also received appreciation letter from the Ministry of Panchayati Raj, Government of India for outstanding performance. Ministry of Panchayati Raj recognized our performance on the basis of feedback regarding swift redressal of issues from the users and technical team for PFMS integration.

Wealth Management

FY 2022 has been a pivotal year for the Wealth Management business in transitioning from a business unit focused on cross selling to a Strategic Business Unit focused on growing its Asset under management (AUM) across various business lines and this pivot is expected to yield positive results for the business in FY 2023.

We are focussed on growing our Wealth Management Business within the guardrails of regulatory compliance. In FY 2022, Premium mobilisation in life Insurance for the year ended 31st March 2022 was Rs.982 crore, growing by 45 percent over the year. In the Non-Life insurance space, your Bank along with its five Non-Life insurance partners introduced new and innovative products and increased customer offerings. Various business driving forces have been brought into effect in terms of increased manpower resources. Employees across channels have been trained on the new products and processes. Premium mobilisation in General and Health Insurance grew by 11 per cent over the year earlier to Rs.490 crore. In Mutual Fund segment, the AUM stands at Rs.8,352 crore with growth of 44 percent.

A comprehensive transformation journey under the aegis of BONOWW project was undertaken for the Baroda Radiance premium banking segment. The Bank tripled headcount of dedicated Baroda Radiance Relationship Managers with fresh hiring of professionals to enhance coverage and value across the segment. Refreshed Baroda Radiance 2.0 value proposition was rolled out for Radiance Customers offering cutting edge, comprehensive and competitive products and services. Investment products like Portfolio Management

Services (PMS) as well as Alternate Investment Funds (AIF) have been launched for Baroda Radiance customers. Baroda Radiance business model has undergone a major overhaul with various capabilities built and introduction of business enablers. The Bank also embarked upon an ambitious digital journey and has initiated the process of tying up with advanced digital technology service providers with an objective to extend seamless digital platforms to customers and the frontline staff to facilitate end to end wealth management solutions. We aim to leverage our technological capabilities and our holistic offerings of wealth management products and services to create value for our customers.

Digital Banking products

The Bank is committed to digitisation and continuously strives to migrate transactions to digital channels which leads to better customer experience. The major focus of digital banking is to make Bank?s products available to customers through digital and alternate delivery channels. The key instruments in digital banking are bob World, BHIM Baroda Pay, Baroda Connect, Debit Cards, Prepaid Cards, BHIM Aadhaar, ATM and Cash Recycler machines, Self Service Passbook Printers(SSPBP), TAB Banking, Internet Payment Gateway (IPG), Bharat Bill Payment Services (BBPS), Baroda FASTag, Bharat QR, Point of Sale (POS), etc.

bob World

During the year the Bank launched an upgraded mobile banking application with new features and services christened bob World. bob World activation increased substantially during FY 2022 to 101.54 Lakh from 49.87 Lakh during FY 2021, thereby registering a growth of 104% during the period. Financial transactions on bob World also increased to 1,483.94 lakh in FY 2022 from 1,226.21 lakh in FY 2021, grew by 21% during the period. The Non-Financial transactions increased by 76 % to 21,931.55 lakh in FY-2022 from 12,430.51 lakh in FY-2021.

Debit cards

The Bank has an active card base of 7.45 crore as on March 31, 2022, an increase of 14%. To increase e-commerce / POS transactions and to make Bank?s debit card as the preferred card of choice for the customer, the Bank tied up with various merchants for providing lucrative offers to debit card customers. Within a duration of six months (from October 2021 to March 2022), a total of 26 campaigns were launched with various popular merchants such as Xiaomi, Zomato, Myntra, EaseMyTrip, Yatra, Ajio, Tata CLiQ, Croma, Amazon, Snapdeal etc..Bank has during the year also launched BCL co-branded NCMC platinum card in the month of Sept?21 and issued 15.58 lac cards by 31/3/22. The Bank?s platinum card base has increased to 81 lacs as on 31/3/22 registering an increase of 165% over the previous year.

Baroda FASTag (National Electronic Toll Collection - NETC)

Bank issued 2.01 lakh FASTag in FY 2021-22. Bank?s FASTag is now available to BOB customers through bob World mobile app. Customers can even apply FASTag for commercial vehicles through Online mode".

Bank has onboarded and issued FASTags for the buses of Kerala State Road Transport Corporation in FY 2022.

Bharat Bill Payment System (BBPS)

Bharat Bill Payment System (BBPS) is an interoperable platform for repetitive bill payments which offers real time bill payment services to customers. BBPS is an RBI initiative product and managed by NPCI. Our Bank is authorized as Customer Operating Unit and Biller Operating Unit for facilitating BBPS services.

? Customer Operating Unit (COU): During FY 2022, Bank has on-boarded M/s Any Time Money Pvt Ltd as an Agent Institution (AI) for facilitating bill payment services to their customers.

? Biller Operating Unit (BOU): Bank has on-boarded following billers in the FY 2022 for facilitating their bill collections :

? Puducherry Local Administration Department

? Silvassa Municipal Corporation

? Stree Nidhi Credit Cooperative Federation Ltd., Telangana

? Mira Bhayandar Municipal Corporation

ATM

Our Bank is having the wide network of 9,845 ATM and 1,642 Cash re-cycler as on 31st March 2022 with very user friendly screen to navigate under 8 languages Hindi, English and local language of place of deployment offering a smooth experience for our customers in their day to day banking operation. Our ATMs are enriched with features such as green pin generation, National Electronic Fund transfer, Cash on mobile services where customer can withdraw money from ATM without using Debit card etc. Now Bank is shortly launching the facility where customer can withdraw money using UPI QR services (ICCW) of Bank. Similarly, the new facility of interbank cash deposit using Bank?s Cash Re-cycler is also going to be launched soon by Bank.

Internet Payment Gateway (IPG)

The Bank?s IPG infrastructure was set up to provide an electronic payment platform, Baroda e-Gateway for its customers to enable them to collect payments through their own website / e-commerce business by enabling payment collection using credit card/ debit card, UPI and net banking. Bank is also having the Paypoint facility through which we provide the complete ERP solution to the merchants and can on board the merchants not having website. To provide a seamless and customisable service, Bank tied up with 16 aggregators and 4 master merchants and onboarded around 3,100 merchants. Bank achieved a growth of 55% in IPG merchant on-boarding in FY 2022.

BHIM Baroda Pay:

UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing and merchant payments into one hood. It also caters to the "Peer to Peer" collect requests which can be scheduled and paid as per requirement and convenience. During FY 2022, financial transactions (outward) under UPI (P2P & P2M) rose to Rs. 250 crore, an increase of 100%.

? ?UPI International: UPI International is jointly developed by National Payments Corporation of India (NPCI) and NETS (Network for Electronic Transfers) of Singapore for promoting QR based payment through UPI application in Singapore Dollar (SGD). The account shall be debited in INR but the amount paid to the merchant will be in SGD. Presently, Bank is live as an issuer. The same facility is also enabled for Bhutan, Nepal and UAE.

? GST payments through UPI: In a momentous decision to promote digital payments in Business to Customer (B2C) transactions through Dynamic QR Code, Government of India laid down guidelines for Goods and Services Tax (GST) enablement in UPI. It was mandated that corporate merchants with annual turnover of Rs.500 crore and above, have to follow QR code provisions for Dynamic QR Code invoicing solution with GST components to customers. Acquired merchants of the bank can avail the facility of Dynamic QR Code with GST components. BHIM Baroda Pay application is compliant with the GST related changes and can scan the GST enabled QR Code, decode and provide the requisite information required by NPCI in request message.

Baroda Connect:

During FY 2022, Bank has successfully on boarded many new customers on its internet banking platform. The total number of Internet Banking users of the bank increased to 88.09 lakh from 76.80 Lakh during FY 2021.

Baroda TabIT:

The Bank embarked upon digitising its customer on boarding process through tablet for instant CASA opening along with host of services (Personalised Cheque Book, Personalised Debit Card, Mobile Banking with MPIN, SMS Alert, Internet Banking and Mobile Banking registration in SB and Current account, UPI etc.) through its TAB banking platform - Baroda TabIT. Bank opened more than 50 lakh savings account and 1.48 Lakh Current accounts through this platform during the year. The TAB on-boarding platform is now extended for FASTag issuance, Debit Card & Vyapar Card Issuance and on-boarding of merchants for availing UPI QR. The TAB platform is now also extended for generating leads for Bhim Adhaar, Credit Card and POS (Individual and non-Individual).

WhatsApp Banking:

Based on the inputs and feedbacks received from various stakeholders?. On 11th Feb, 2022, we have launched the Phase-2 functionalities under New Digital Delivery channel WhatsApp Banking for our customer and non-customers of the bank. Gist of the new functionalities are given as under-

1. CBS/ Digital Channel based services:

? Account Statement

? Disabling of UPI

? Account Blocking (Debit freeze)

? Disabling Debit Card for Domestic Transactions (POS/ECOM/ATM)

? Disabling Debit Card for International Transactions (POS/ECOM/ATM)

? Tracking of Cheque Book request

? WhatsApp Banking Registration/Deregistration Functionalities

? OTP validation for critical services (Cheque Book request, Debit Card Blocking, Disabling Debit Card for Domestic/ International transactions, Registration/De-Registration WhatsApp Banking and Disabling of UPI)

2. Baroda FasTag:

? Tag Balance Inquiry

? Mini Statement (Tag Transactions)

3. Wealth Management Services (Both customers and non-customers): Wealth Management Services (M/s IndiaFirst Life Insurance) will be provided using redirection to respective business partner?s WhatsApp Business Account.

4. Other Facilities (Re-directional):

? MSME Banking Product

? Agri loan and Services

? Agri Loan Feature

? Apply for Agri Loans

? Baroda Kisan

? bob World cross marketing text with link on main menu

5. Digital loan Services (Re-directional):

? Personal Loan

? Auto loan

? Home Loan

? Mudra loan

6. Introduction of WhatsApp Banking in Hindi Language: We have introduced our WhatsApp Banking option and customer journeys in Hindi for customer convenience and promote usage of our official Language.

7. Extended WhatsApp Banking services to International numbers of selected countries (19 countries)

? In addition to the above, we have developed a Push notification API for integration with various channels as per the requirement.

? We have also initiated Marketing campaign during Diwali by sending messages on awareness of Bank of Baroda Debit Cards and bob World application.

? Extension of Digital B3 Accounts under WhatsApp Banking has been deployed and made live in production.

? Admin portal of WhatsApp Banking has been made live, which is having modules for Admin and customer care.

? As on 31st March 2022, approx. 1.6 lacs cheque request has been submitted successfully.

? WhatsApp Banking User registration -

Year	Number of Users registered on WhatsApp Banking (in lacs)
FY 2021	6.16
FY 2022	14.04
Total registration	20.2

? WhatsApp Banking Transactions -

Year	Number of WhatsApp Banking Transactions (in lacs)
FY 2021	47.8
FY 2022	207.5

8. Digital Lending

As the world transitions into the new normal, technology has become an essential factor in our productivity and efficiency.

As technology took the front seat, customers started to seek services that did not require them to travel, particularly for their routine banking needs. This evolving landscape of customer preferences led us to build Digital Lending Platform (DLP).

The Digital Platform is helping Bank to cater to existing customer borrowing needs and acquire new customers from diverse segments using digital means, enter new and hitherto untapped markets, and add a prominent digital dimension to Bank?s brand identity.

The platform is empowering the borrower to complete the end-to-end loan process from lead, to sanction, and to disbursement in a few clicks with minimal including mandatory documentation using contactless and paperless process from the convenience of their homes/ office, eliminating the need to physically visit the Bank?s branch.

At the core of this digital lending platform, fintech are playing a pivotal role in revolutionizing credit ecosystem by creating alternative lending channels that offer significant to both Bank and borrowers.

Bank of Baroda has been ranked 1st for Digital Lending by Govt. of India for adoption of PSB Reforms EASE 4.0

Initiatives of Digital Lending to improve Bank?s business portfolios;

MSME Segment:

? ?Bank has digitized renewal process of small ticket MSME loans covering around 70% of Bank?s portfolio by number. This has brought in significant terms of operational efficiency, process standardization and better monitoring. We are well on track of digitally renewing 1 lakh cases during this Financial Year and at least 50% more in the coming year.

? ?Bank has launched straight through process journey for sanctioning Mudra Loans up to 10 lakh using fully digital metrics. This initiative is expected to drive significant value in the coming years in terms of quality MSME business.

Retail Segment:

? ?Bank has launched end to end Straight-Through Processing (STP) upto disbursement for Personal Loan up to 10 lakh using fully digital metrics.

? Further analytics are used to understand customer?s behavior and account information, thereby offering pre-approved personal loans to existing customers through end-to-end digital journeys.

Agri Segment:

? ?Bank is working on STP digital journey for BKCC in selected states which are having progressive digitization of agri land records. The journey involves integration with Agritech?s for fetching of land record and risk analysis of the farm data.

? Bank has launched Digital Journey for Gold Loan to provide enhanced banking experience to the customers.

Analytics Centre of Excellence (ACoE)

Bank are continuing extending the data and breadth of analytics use cases for different business verticals. Bank have integrated multiple external data sources to get deep insights of our customers. We have also rolled out multiple analytical use cases related to cross -sell, up-sell, forecasting, Early Warning Signals etc. to generate revenue and optimise the efficiencies.

Information Technology

? ?Bank has successfully upgraded CBS international-Finacle 7x to 10x for all 18 territories, additionally re-architected the infrastructure for better availability and performance.

? Bank has successfully completed the amalgamation of Kashi Gomti Samyut Gramin Bank (e-KGSGB) and major CBS cross platform migration of erstwhile Purvanchal Bank (e-PB) to Baroda Uttar Pradesh Gramin Bank (BUPGB).

? Bank has successfully implemented multiple government sponsored schemes like IFMS Integration, Single Nodal Account (SNA) for managing of funds through PFMS under the umbrella of Centrally Sponsored Schemes (CSS).

? Bank has upgraded the Integrated Global Treasury application for Front, Mid and Back office with augmented hardware and latest operating system

? Bank has revamped the BoB World mobile banking platform with enhanced user interface, state-of-the-art design, and ease of use. Presently there are 235+ services covering almost all banking services.

? Bank has enhanced the tablet based assisted banking platform for on boarding and servicing Customers Bank.

Bank is the first in the industry to introduce assisted journey for opening of SHG Accounts.

? Bank has introduced Chatbot, a cognitive assistant designed for providing customer support to Bank?s International Centers at Uganda, Kenya, Botswana, Mauritius, UAE and Tanzania.

? Bank has enhanced the WhatsApp Banking services for providing better customer service experience with 18 services.

? Bank has revamped the Internet Banking application for International Centers with various enhancements and also provided various customer centric features like Green PIN, Cash on Mobile for International centers.

? Bank has augmented the infrastructure to sustain load of all applications based on the present volumes, future projections for 3-5 years.

Cyber Security

In today?s world, new risks emerge every hour of the day. Increased risk of cybercrime has led to a focussed approach to mitigate the emerging cyber risk. Monetary and reputational risks are high and have been mitigated with appropriate Cyber Security Policy and Cyber Security Crisis Plan. The Bank has a well-defined Cyber Security Governance framework in place that is operated through a combination of management structure, policy framework and operational controls. The Bank follows both NIST (National Institute of Science and Technology, USA) Cyber Security Framework and RBI Cyber Security Framework.

In addition to the existing checks and controls, Bank undertook the following measures to enhance cyber security: ? ?Deception Technology, which aims at preventing cybercriminals who have managed to infiltrate network from doing any damage to the Bank.

? Regular Random Early Detection (RED) team exercise carried out to provide valuable and objective insights about vulnerabilities and the efficacy of defenses and mitigating controls already in place.

? Cyber Insurance Policy from a reputed insurance provider to protect business and individuals from Internet-based risks and frauds.

? Data Leak Prevention (DLP) ensures that no confidential information is leaving the Bank network. Data leakage prevention is helping in application monitoring, email monitoring, malware protection and user access control.

? Network Access Control (NAC) is helping Bank in providing restricted access to computing resources. It provides visibility, access control, and compliance that are required to strengthen network security infrastructure.

Marketing

The Bank launched its flagship digital sub brand ‘bobWorld‘on the occasion of its 114th Foundation Day in the month of July.

The launch was done through first of its kind 360 Degree pre-teaser campaign followed by a teaser and the mega launch campaign with Bank?s brand endorser Ms. P V Sindhu, Indian International badminton player, at its face. Ever since the launch throughout the year there has been constant & continued thrust on the sub brand bobWorld through various campaigns.

Apart from the flagship bobWorld campaign, with the onset of festive season and opening up of markets, other products campaigns such as Home Loan, Car Loan, MSME loans, Online SB Account Opening etc were also run during the year. Bank also celebrated ‘Azadi Ka Amrit Mahotsav? during anchor month (February 2022) on Pan India basis with special focus on SLBC states ( Gujrat, UP and Rajasthan).

Bank signed Indian Cricketer Ms. Shafali Verma as its brand endorser. It is a welcome result of her consistent outstanding performance in the women?s Cricket for India. Bank has a history of associating with ace athletes and sportspersons as its brand endorsers and being a crucial part of their journey. The Bank continuously supports the youth of the country through its various banking and non-banking initiatives and this association reflects the Bank?s ethos of adding value to its customer experience by choosing youth-icons like Shafali to inspire them. Further, Ms. Shafali?s personality resonates grit, determination and dependability which reflects the Bank?s brand ideologies.

Ms. Shafali has created various records, one of which is when she became the youngest woman cricketer to play for India in her debut game against South Africa. The youngest Indian to top any ICC list, Ms. Shafali is hailed as one of the promising talents to watch out for in Women?s Cricket.

On the digital front, Bank fortified its digital marketing efforts for business conversion leveraging on the digital journeys rolled out for Home Loan, Car, Loan, Personal, Loan, Mudra Loans etc.

The Bank continued to have its impactful presence across the media spectrum reaching out to its customers through electronic, radio, digital, and events. #BOB Green Ride With Milind was one such initiative in collaboration with fitness icon Milind Soman. Overall, the initiative proved to be yet another benchmark in the Bank?s contribution toward a healthier tomorrow held this year in a hybrid avatar. The Bank has always advocated the might of knowledge acquisition and learning in youth and millennials and Jaipur Literature Festival an iconic annual literary festival, was one of the perfect opportunities to champion the same. Further strengthening our presence across our digital marketing channels, we rang in the festive season during Diwali urging our customers to gift their loved ones as per their choice using compare & shop options on our mobile banking application - bobWorld. Bank has been associated with Olympic star PV Sindhu for over 5 years now and launched the second edition digital IP #SmashItWithSindhu2 wherein she interacted with her fans and also giving a sneak peak into bob World, describing it as super-fast and convenient. The details of Bank?s social media presence are as below:

Social Media Channels	Statistics(No of likes/Followers) as on March 31 2022
Facebook likes	21,53,983 +
Twitter followers	3,95,000 +
YouTube Subscribers	1,03,937 +
LinkedIn followers	1,73,605 +
Instagram followers	2,14,473 +
Quora Views (started on 1st Jan 2022)	27,459 +

As the Bank continues to leverage new age digital marketing and create an equilibrium between the physical and digital marketing, the objective is to be an aspirational brand which engages, empowers and educates digital audience by providing relevant content and fulfill banking needs by constantly analyzing, measuring and improving experience, response and capabilities.

Corporate Ethics

In our pursuit of joining the international ranks of the most respected organizations in terms of ethical conduct, our Bank formally established the Corporate Ethics function on 10th August 2021, with the objective of developing a strong ethical culture that leads to building better trust with employees, customers and other stakeholders. Ethical conduct needs to be reinforced in everything we do and a well-defined ethics framework will go a long way in enhancing employee engagement, job satisfaction, organizational commitment, brand equity and trust.

The Corporate Ethics Department receives guidance and support from the leadership of the bank, as well as an Apex Level Ethics Committee, formed from a cross-section of the entire Barodian workforce with various representations like gender, function, geography, caste, cadre, sports, PWD, ex-servicemen and international geographies, with a mandate to embrace inclusiveness and collaboration as central themes. One of the most powerful strategies for ensuring the success of our ethics agenda is developing effective channels of communication and towards this endeavour, a quarterly in-house journal - "Baroda Sanskriti" - was launched on 1st January 2022 with contributions from the employees. Further, regular quizzes, competitions and digital communications from the Corporate Ethics Department also ensure better awareness of ethics.

The Bank is soon going to launch 'Our Code of Ethics', which will be a milestone for us in our journey of ethics and a landmark initiative for a Public Sector Bank in the country. We are proud to be amongst the pioneers in adopting a Code of Ethics and devising an institutional mechanism for handling ethical concerns and issues in the organization. The Code has been structured on a stakeholders? based approach with the employees at the centre as the ultimate owners and drivers of culture. There is a strong alignment of the Code of Ethics with our Core Values and the Code sets out a guiding framework for how we behave with our colleagues and stakeholders and our expectations from those who work with us.

The Banking industry has seen a lot of challenges with the changing times but amidst these, ethics and trust remain at the core of the industry on any given day. Bankers face ethical dilemmas in their day to day working, and it is therefore important to have some markers and a guide to taking the right decisions at work. The Code gives us the strength to do what is "RIGHT" and will help to enhance our Bank?s brand and reputation.

The Code of Ethics has been benchmarked with peer organizations from around the world. Webinars and dedicated training programmes planned for all staff members will ensure that the Code of Ethics is cascaded to all employees and strengthen the culture of ethics and transparency in our Bank. By creating a corporate culture that encourages employees to behave ethically and speak up against unethical practices, we expect our organization will be able to deliver powerful Environment, Social and Governance (ESG) outcomes that addresses the interests of all our stakeholders.

Customer Service

The Bank constantly endeavours to set industry benchmarks and pioneer innovations across products, processes and service delivery that are imperative to providing seamless experiences to its customers. Customer interactions are continuously monitored across channels and channel capabilities (functionalities and the user experience) were enhanced to ensure ease of banking from home which has become the need of the hour due to the pandemic. The Bank ensured that frequently used functionalities by customers were made available through digital channels and contact centre. The 24*7 contact centre has the capability to connect with customers in their preferred language. Apart from Hindi and English, the language capability was increased to nine regional languages. The contact centre handled more than 4.31 crore customer calls during the year. To assess customer satisfaction levels across segments various surveys are conducted by the contact centre. Customer Grievance Redressal System (a module of the CRM package) with time bound auto escalation, options to attach documents, provide feedback on resolution quality and reopen complaints is now widely used by customers. During FY 2022, the Bank saw significant improvement in the usage of remote channels for managing grievances. Approximately 92.43% of the grievances were resolved within the pre-defined turnaround time. The Bank not only focussed on improving the quantitative performance indicators of grievance redressal but also on improving the quality of resolution to improve customer satisfaction. Service levels across the network of branches are monitored through mystery shopping/service audits and workshops. The General Manager, Operations and Services, is designated as Principal Nodal Officer for customer complaints in the Bank. Moreover, all zonal heads and regional heads are designated as nodal officers for their respective zones and regions. Further, the names of respective nodal officers along with their contact numbers are displayed in all the branches of the bank. The Bank has appointed an Internal Ombudsman which is a forum made available to customers for grievance redressal prior to approaching the Banking Ombudsman. All complaints, which are rejected or partially accepted by the Bank, are systematically escalated to the Internal Ombudsman for review. This enhances the customer confidence in the Bank?s systems and expedites the process of grievance redressal, thus making it more transparent.

The Bank?s code of commitment to customers and MSME?s, citizen charter, grievance redressal policy, and banking ombudsman scheme are available on the Bank?s website to promote fair banking practices by maintaining transparency in various products, services and policies. At the Board level, the subcommittee of Board for Customer Services addresses the issues relating to the formulation of policies and assessment of compliance with same with the aim of consistent improvement in the quality of customer service. The subcommittee also analyses the feedback received from customers through Voice of Customers and compares the Bank with its peers on various parameters to enhance the customer experience. During FY 2022, the Bank ensured that ramp facility (wherever possible), comprehensive notice boards (displaying relevant and updated information), special queue for senior citizens were available in the branches, ATMs and e-lobbies. Branches also underwent a facelift and were designed to enhance customer experience through better ambience, increased seating area with special focus for senior citizens and the differently abled customers.

The Bank has also launched its ChatBot "ADI" on its website. ADI assists customers in navigating through various pages of the website while providing an interactive experience to the customers. Few features of "ADI" are instant response to our customers? queries, convenient to chat, available 24*7, digital assistance, seamless chatting experience. Bank has also tied up with TrueCaller services for outbound sales calls. This means that whenever a call is made via an authorized phone no. of the bank, Bank?s Logo and a "blue-tick" will be visible to the customers on their phone screens, thus assuring the customers that the call is genuine. This will also prevent customers from falling prey to frauds.

The Bank has also implemented Queue Management System (QMS). It is a crowd management tool. The customers need not crowd at the counters and instead wait for their turn in more relaxed/comfortable position. QMS revolves around Customer Service as the MIS has various outputs to gauge the average waiting time, average serving time. It has been installed in 1,266 branches across India.

Bank has also implemented Online Dispute Redressal (ODR) mechanism for speedy resolution of online transaction relate complaints. Also, blocking of Baroda Connect facility has been extended via Interactive Voice Response System (IVR) in contact centre.

Branch Network

As of March 31, 2022, the branch network of the bank is as under:

	March 31, 2021	March 31, 2022
Domestic Branches	Number of Branches	% Share in Total	Number of Branches	% Share in Total
Metro	1,794	21.84	1,766	21.62
Urban	1,478	17.99	1,475	18.06
Semi Urban	2,090	25.44	2,083	25.50
Rural	2,852	34.72	2,844	34.82
Total	8,214	100.00	8,168	100.00
Overseas Branches/ Offices (including branches of overseas subsidiaries)	96		94

The Bank opened new 9 domestic branches and merged 55 branches with existing branches during FY 2022.

Currency Chests

The number of currency chests stood at 141 as on 31st March 2022. These chests support effective cash management in the Bank as well as vaulting cash on behalf of RBI. All the currency chests as well as branches are provided with Note Sorting Machine (NSMs) as per RBI guidelines.

Risk Governance and Internal Controls

The increased focus on risk and the supporting governance framework includes identification, monitoring and controlling of risks as well as ensuring that risk-taking activities are in line with the Bank?s strategy and risk appetite. Often referred to as the "three lines of defence", each of the three lines has an important role to play. These are:

i. First line of defence - This comprises of the Business verticals and Operating units, as they are required to own and ensure the effective management of risk and compliance with regulations, Bank?s policies and guidelines.

ii. Second line of defence - This comprises of the risk control owners, the risk management function and compliance function. It is responsible for identifying, measuring, monitoring and reporting risk on an enterprise-wide basis independently from the first line of defence.

iii. Third line of defence - An independent assurance is provided by the internal audit function by conducting internal risk-based and other audits. The reviews provide assurance to the Board that the overall governance framework, including the risk governance framework, is effective and that policies and processes are in place and consistently applied. The role of audit function is defined and overseen by the Audit Committee of the Board.

Risk Management and Compliance

Risk Management and Compliance is an integral part of the banking business and the Bank aims to achieve an appropriate trade-off between risk and returns. To ensure sustainable and consistent growth, the Bank has developed a sound risk management framework so that the risks assumed by the Bank are properly assessed and monitored.

The Bank undertakes business activities within the defined risk appetite limits and policies approved by the Board of Directors of the Bank. Specific committees of the Board have been constituted to facilitate focussed oversight on various risks. The Board has also constituted a Risk Management Committee of the Board which oversees the different type of risks. It is supported by on- board specialists in the area. Policies approved from time to time by the Board of Directors or committees of the Board form the governing framework for each type of risk.

Basel III Framework

The Banks risk management framework rests firmly on the three Basel pillars, i.e Pillar I- Capital Adequacy, Pillar II- Supervisory Review and Pillar III-Market Discipline. The Bank is strengthened by a healthy level of capital. The Bank maintains adequate levels of Common Equity Tier I, Additional Tier I and Tier II Capital including required Capital Conservation Buffer. Futuristic capital projection ensures that the Bank is always ready to raise additional capital from the market as per business necessity. The position of risk weighted assets is constantly under strong vigil by the credit risk and capital adequacy team. Adequate capital and rationalised risk weighted assets ensures strong Capital to Risk Weighted Assets Ratio (CRAR) for the Bank.

The Bank has a comprehensive Internal Capital Adequacy Assessment Process and Stress Testing Policy in place. Capital Adequacy is assessed considering Pillar 2 risks such as Liquidity Risk, Interest Rate Risk, Concentration Risk, etc. and stressed conditions (under both normal and adverse scenarios) as per the extant guidelines. A brief outline of the mechanism for identifying, evaluating and managing various risks within the Bank is given below:

Enterprise Risk Management

The diversity of the Bank?s business lines requires a comprehensive Enterprise Risk Management approach to promote a strong risk management culture to help in the early identification, assessment, measurement, aggregation and management of all risks and to facilitate capital allocation among various business lines. All material risk appetite limits are approved within the overarching Risk Appetite Framework and are adequately hedged. The Bank is constantly endeavouring to create a strong risk culture by imparting trainings to the employees at all levels.

Climate Risk

Climate change risk has become a crucial challenge to the financial industry, of late. The Bank is committed to reduce the impact of climate change risk and is consciously working towards sustainable development of its banking operations so as to achieve the economic development while maintaining the quality of environmental and social ecosystems. As a policy matter, to reduce the greenhouse effect, the Bank does not finance borrowers for setting up new units producing consuming Ozone Depleting Substances (ODS) and small / medium scale units engaged in the manufacturing of aerosol units using Chlorofluorocarbons (CFC) which enables reduction in greenhouse effect.

Credit Risk

Credit risk is managed through a Board approved framework that sets out policies, procedures and reporting which is in line with best practices. Bank has a strong credit appraisal and risk management framework for identification, measurement, monitoring and control of the risks in credit exposures. Bank uses various Internal Credit Risk Assessment Models and scorecards to assess borrower-wise credit risk. Various Credit Risk models for internal credit ratings of the borrowers were developed in-house. They are reviewed and back tested through comprehensive validation including external validation. Bank has recently upgraded its Internal Credit Rating system to bring in efficiency and strong data management system.

The Bank has put in place prudential caps across industries, sectors and borrowers to manage credit concentration risk. The Risk Management Department carries out detailed reviews on sectoral exposure, credit concentration, rating distributions and migration. The Bank has developed in-house models for Country Risk assessment and State Government exposure model for assessing the riskiness of the borrower by assessing various parameters and exposure caps are fixed considering the riskiness estimated by these models.

Bank?s experience in internal ratings over the years has enabled to obtain the regulator?s approval for running the foundation internal rating-based approach (F-IRB) approach of credit risk under Basel II guidelines from 31st March 2013. Under the IRB approach, banks develop their own empirical model to quantify required capital for credit risk. Bank has well established models for awarding internal rating to the borrowers and these models are calibrated and validated periodically by dedicated internal team as well as external agencies The Bank has implemented ‘Risk Adjusted Return on Capital (RAROC)? framework for corporate credit exposures for evaluating credit risk exposures from the point of ‘economic value addition? to the shareholders. The Bank has also implemented Enhanced Access and Service Excellence (EASE) Risk Scoring Model for independent risk-based review of the credit proposals by risk vertical of the bank, including classification of credit proposals into high/ medium/ low risk along with risk decisions of go/ no go.

Adequate attention is given to the independence of the risk evaluators and business functions for establishing a sound credit culture and a well-structured credit approval process.

Market Risk

Market Risk implies the risk of loss of earnings or economic value due to adverse changes in market rates or prices of trading portfolio. The change in economic value of different market products is largely a function of change in factors / such as interest rates, exchange rates, economic growth and business confidence. The Bank has well control and monitor its treasury functions which undertakes various market risk positions.

Mid-Office as a part of Risk Management, measures and monitors interest rate risk in its trading book through risk limits like duration, modifiedduration, PV01 and Value at Risk (VaR) on a daily basis. The foreign exchange risk is measured and monitored in terms of Net Overnight Open Position limits (NOOPL), VaR limits, Individual Gap Limits (IGL), Aggregate Gap Limits (AGL) and total Aggregate Gap Limit (TAGL) on a daily basis. Equity price risk is measured and monitored through VaR limits and portfolio size limits, etc. At a transaction level, stop loss limits and dealer wise limits have been prescribed and implemented as per the extant guidelines of the Bank. Mid-Officealso conducts back testing of the VaR numbers on a daily basis. Under its stress testing framework, the Bank conducts comprehensive stress tests of its trading book portfolio on a quarterly basis. Risk-return analysis of treasury trading portfolio is also conducted on a quarterly basis. The market risk capital charge for the Bank is computed by mid office as per the Standardised Duration Approach (SDA) in line with the regulatory guidelines.

Asset Liability Management

Liquidity Risk is the inability to meet expected and unexpected cash and collateral obligations at reasonable cost. In the Bank, the liquidity risk is measured and monitored through Flow Approach and Stock Approach and other prudential stipulations as per the latest guidelines of the RBI. The Bank has implemented the Basel III Framework on Liquidity Standards - Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards. The LCR standard aims to ensure that banks maintain an adequate level of unencumbered High - Quality Liquid Assets that can be converted into cash to meet liquidity needs for a 30-calendar days? time horizon under a significantly severe liquidity stress scenario. The Bank has always been well above the stipulated level of LCR on a solo basis as well as on a consolidated basis. The RBI has also introduced NSFR (Net Stable Funding Ratio) with effect from 01st October 2021 which promotes resilience over a longer-term time horizon whereby Banks are required to fund their activities with more stable sources on an ongoing basis. The NSFR seeks to ensure that Bank maintains a stable funding profile in relation to the composition of its assets and off-balance sheet activities. The Bank?s NSFR has been well above the stipulated level of 100%.

Interest Rate Risk in the Banking Book (IRRBB) arises due to mismatch between rate sensitive assets and rate sensitive liabilities which may adversely impact the earnings/economic value of equity of the Bank with the change in interest rates in the market. For measurement and monitoring of interest rate risk in banking book, the Bank uses risk management tools such as Traditional Gap Analysis, Earning at Risk and Modified Duration of Equity. The short-term impact of interest rate movements on Net Interest Income (NII) is worked out through the ‘Earnings at Risk? approach by taking into consideration parallel shift in yield curve, yield curve risk, basis risk and embedded options risk. The long-term impact of interest rate movements is measured and monitored through change in Market Value of Equity.

Operational Risk

The Bank has a well-defined Operational Risk Management Framework (ORMF) and Operational Risk Management System (ORMS) for effective management of Operational Risk in the organisation. ORMF comprises of the organisational structure for management of Operational Risk, Governance Structures, Policies, Procedures and Processes whereas ORMS consists of the systems used by the Bank in identifying, measuring, monitoring, controlling and mitigating Operational Risk.

The Bank has a web based Operational Risk Management System for data capturing and for systemic and integrated management of Operational Risk. In our endeavour to use the best of technology, we have procured a web based Operational Risk Management System SAS GCM for Operational Risk Compliance & Governance.

Monitoring of Key Risk Indicators Programme (KRI), Risk & Control Self-Assessment Programme (RCSA) and Root Cause Analysis of various loss incidents strengthen the control environment. The Bank created a repository of Internal Loss Data as part of Operational Risk Management. Ongoing review of products and processes in the light of the changing business environment further strengthens the risk culture. In order to ensure operational resilience, Bank has a well-defined Policy on Business Continuity Planning. BCP enabled the Bank to ensure minimum disruption during the COVID-19 pandemic and the natural disasters which occurred during the year. Risk Culture in the Organisation is being ingrained across the gamut of employees through the Training System.

Business Continuity Plan

Bank has a detailed and effective Business Continuity Plan (BCP) in place for ensuring continuity of operations and rendering customer service at the Branches and Offices during disruptions. The same could be witnessed when we rose to the challenge of delivering uninterrupted banking services amid wide ranging restrictions following the outbreak of COVID-19 pandemic.

With regard to this, quick response teams and help desks have been setup at Corporate Office/Head Administrative Offices. Staggered working hours / Team ‘A? and Team ‘B? concept / work from home is being followed as a part of proactive Business Continuity Plan. Bank also arranged vaccination camps and quarantine centres in association with various hotels for the safety and proper medical care of the employees. Further, foreseeing the impact and extent of pandemic crisis, the Bank has taken all precautionary initiatives to ensure continuity in day to day operations. The Bank has ISO 27001:2013 certified Data Centre and Disaster Recovery site. Bank?s Disaster Recover site is capable of handling the CBS and other functions of the bank in case of any disruption at Data Centre.

Compliance

Compliance function in the Bank is one of the key elements in its corporate governance structure. The compliance function in the Bank is adequately enabled and an independent function. The compliance function ensures strict observance of all statutory provisions contained in various legislations such as Banking Regulation Act, Reserve Bank of India Act, Foreign Exchange Management Act, and Prevention of Money Laundering Act etc. as well as other regulatory guidelines issued from time to time. It also ensures adherence to the Bank?s internal policies and fair practices code. The Bank has a robust compliance system including a well-documented compliance policy, outlining the compliance philosophy of the bank, role and set-up of the compliance vertical, composition of its staff and their specific responsibilities.

The compliance function advises senior management and the Board on the position of Bank?s compliance with applicable laws, rules and global standards and keeps them informed of developments in the area. It also educates employees about compliance issues by conducting periodic training and workshops for business staff and designated compliance officers. Knowledge management tools for this purpose have also been uploaded on the Bank?s website. The Bank has implemented a web-based compliance management solution for certification and monitoring of various regulatory, statutory and internal guidelines at each level in the Bank for further strengthening the compliance function. The Bank has also automated the process for obtaining information from the "Insiders" as defined in the Securities and Exchange Board of India (SEBI) Code of Fair Disclosure and Conduct.

Domestic Compliance

Amongst several activities, the domestic compliance function conducts on-site compliance test checks on more than 73 parameters on KYC-AML guidelines and other parameters of compliance through Regional Compliance Officers (RCOs) by using web based tool - Onsite Compliance Testing and Reporting System. As many as 25% of branches are randomly selected on a quarterly basis. Bank conducts on-site compliance audit of various functions on half yearly basis. Off-site compliance test check of around 50 parameters on issues related to KYC/AML guidelines and other parameters of compliance is carried out on a monthly basis through the web based tool - Offsite Compliance Reporting and Monitoring System (OCRMS).

An annual group wide compliance plan is prepared and regular monitoring is carried out for ensuring adherence toOffice and all our the plan. Additionally, compliance risk is assessed annually and a risk-oriented activity plan is developed for compliance assessment.

In the process of capacity building, the Bank imparted training to all compliance officers and nominated officials to various external training programmes conducted by reputed institutions on latest developments in the areas of compliance. In order to promote professionalism, the Bank encouraged staff members to pursue professional courses from reputed institutes like Indian Institute of Banking and Finance (IIBF), Association of Certified Anti-Money Laundering Specialists (ACAMS) etc.

FY 2022 There were no significant relating to compliance failure.

International Compliance

The compliance function is also having an oversight on the compliance of overseas territories and subsidiaries for which an International Compliance (IC) unit headed by a Deputy General Manager is set up. IC monitors the compliance of overseas centres through an automated compliance monitoring tool. Additionally, the IC also provides support on the AML-KYC function of overseas territories and subsidiaries for which an experienced and skilled team is available in the unit.

As part of new initiatives IC has implemented automated compliance monitoring tools Tasc+, Cermonxt and TestChk through which monitoring of monthly compliance certificates, offsite test checks, Annual Compliance Plan, Regulatory/ Non-Regulatory issues and ATRs.on various internal/external audits, inspections and examinations is being carried out. The automation is being used to not only monitor how effectively the compliance processes are being implemented but also to identify areas where new standards and controls may need to be applied or existing ones be improved along with identifying any potential breaches. Additionally, the tools will help in generating appropriate MIS and maintaining historical data for all overseas territories and subsidiaries.

Apart from the above, the IC has also developed an AML-Compliance Risk Rating Matrix for risk categorization of the respective overseas centres based on the levels of compliance and AML-KYC standards. Further, to apprise the Board of the adequacy of the AML-Compliance function, the IC carries out off-site test checks of CBS and AML systems to exercise oversight on the territories and subsidiaries. Data is sourced from respective IT teams, analysed and anomalies observed are shared with the overseas centres and necessary guidance for remediation of gaps is provided to the Compliance officers.

The IC also arranges trainings for overseas centres in coordination with the Apex Academy on various compliance matters like KYC-AML/CFT standards, transactions monitoring, sanctions screening, offline alert monitoring, etc. and ensures adequate and timely trainings are provided to minimize risks, maintain reputation and benefit employee productivity in the long run.

KYC/ AML Compliance

The Bank has a well-defined KYC-AML-CFT policy. On basis of this policy, KYC norms, AML standards and CFT Measures and obligations of the bank under Prevention of Money Laundering Act (PMLA) 2002, are implemented. The Bank has elaborate systems to generate Cash Transaction Reports (CTRs) electronically for submission to Financial Intelligence Unit-India (FIU-IND). The Bank electronically files Counterfeit Currency Reports (CCRs), Non-profit organizations Transaction Reports (NTRs) and cross border wire transfer (EFT) reports to FIU-IND, New Delhi on its portal every month within prescribed timelines. The Bank established a Central Transaction Monitoring Unit (CTMU) and put in place an AML Solution for monitoring and detection of unusual transaction patterns in customers? accounts and generation of system based transaction alerts on the basis of predefined alert parameters in the system. System based risk categorization (money laundering risk categorization) of customers? accounts is done on a half yearly basis. Re-KYC of all eligible customers is done on half yearly basis after carrying out money laundering risk categorization exercise, as per extant guidelines of the RBI. For this purpose, the Bank has developed automated process for identification and generation of notices/ sending SMS/email to such customers to notify them for submission of requisite KYC documents. The Bank implemented Central KYC (CKYC) process for registration of newly on-boarded individual customers? KYC information on Central KYC Registry. CKYC number was allotted to 439.86 lakh customers as of March 31, 2022. The Bank has also implemented Video based Customer Identification Process (V-CIP) as an alternate method of establishing the customer?s identity for on boarding new Tax Resident Indian Individual customers.

Internal Audit

The Bank?s Central Internal Audit Division (CIAD) is responsible for Internal Audit. CIAD administers various streams of audits besides Risk Based Internal Audit (RBIA) of branches and offices. The Audit Committee of the Board oversees overall internal audit function and guides in developing effective internal audit, concurrent audit, IS Audit and all other audit functions of the bank. The committee monitors the functioning of the Audit Committee of Executives and Internal Audit Department in the Bank.

CIAD operates through 18 Zonal Internal Audit Divisions to carry out internal audit of branches/offices as per the periodicity decided by the Risk Based Internal Audit Policy. All branches of the Bank are covered under Risk Based Internal Audit. The summarized risk perception of all 8,167 branches & SITB (Specialized Integrated Treasury Branch) for FY2022 are as under:

? 7340 Branches (89.87%) were in Low Risk

? 704 Branches (8.62%) were in Medium Risk

? 119 Branches (1.46%) were in High Risk

? 0 Branches (0.00%) were in Very High Risk

? 4 Branches with no rating (New Branches)

? SITB was in Low Risk

The Bank had engaged an independent firm as a knowledge partner for comprehensive review of Audit function in-line with the processes focusing on centralisation of activities by use of technology, imaging solutions and digitisation. The audit transformation process was completed and audits under the revised approach have now stabilized over the period.

Credit Monitoring

Monitoring of the credit portfolio is essential in order to maintain and improve the asset quality of the Bank and minimize credit risks. The main objective of Credit Monitoring is to ensure Compliance of sanction terms and end use of funds. It has to further ensure that the credit assets remain in standard category, endeavour made for up-gradation of identified stressed accounts/ watch list accounts and take corrective action to prevent slippage of the accounts from Standard to NPA category. The Department has been using various tools and methods for identifying and monitoring stressed accounts with signs of weakness/ potential default/ delinquencies to ensure good asset quality coupled with containment of probable slippages effectively.

Tools for efficient monitoring & control process:-

Early Warning Signal: A fully tech based EWS solution is implemented in our Bank since August 2020. Our EWS is fully automated solution with in built well defined work flow.

Alerts are generated based on both internal (CBS and Rating Data) and External Data (MCA, CIC etc). The alerts generated helps the Bank for identifying incipient weakness and initiate proactive timely remedial measures. The solution help the Bank in early identification of fraud in accounts (if any). This solution also enables the branches for close monitoring of accounts with appropriate resolution/ action.

CRILC Reporting: Identification of the accounts in SMA category triggers mitigating steps, such as follow-up for regularization, restructuring etc. In terms of RBI?s guidelines, stressed accounts with credit exposure of Rs. 5 crore and above are reported to RBI on CRILC platform on a weekly basis.

Analytical Dashboard: Bank has devolved various analytical Dashboard for identification stressed accounts (Viz SMA Dashboard, Future Demand Dashboard, Collection efficiency Dashboard, Technical stress Dashboard for focused monitoring.

System based prediction of Asset Classification (SASCL):

A predictive program is identifying the probable slippages showing overdue of more than two months period based on record of recovery as well as for accounts showing technical irregularities such as non-submission of Stock/QIS statement over three months, insufficient/ no credit in CC accounts etc. This triggers focussed timely corrective action to prevent downgrading of such accounts. These accounts are monitored specifically by various operational units for minimizing the slippage of standard assets.

Credit Process Audit: Credit Process Audit (CPA) is to ensure compliance of pre and post disbursement terms of sanction terms/ covenants, wherein it is audited whether the disbursing officer, before parting with the Bank?s funds, has taken all necessary measures for creation/ perfection of security with a view to ensure enforceability of the said securities. This facilitates prompt corrective action, wherever required, without waiting for the regular Audit/ Inspection, which usually takes place with a time lag. CPA is integrated with the core system Finacle to monitor it on real-time basis.

Stock Audit: We ensure timely conduct of Stock & Receivables audit in eligible accounts and take active/ preventive steps wherever warranted. The stock audit is applicable for standard advance accounts having working capital exposure of Rs.1 crore and above. It is required to be conducted annually for such accounts with exposure below Rs.5 crore, while for accounts of Rs.5 crore and above, it is on a half yearly basis. Assets showing inherent signs of weakness, such as out of order position, overdue Bills under Letters of Credit, invocation of guarantees, review overdue etc., which pose a threat to the Bank?s asset quality, are followed up at various platforms & levels.

Daily marking of NPA: The Bank has migrated to daily marking of NPA as per RBI guidelines to have better transparency in identification of NPA & for compliance of regulatory guidelines.

Other monitoring tools:

? ?Centralized monitoring of pre-disbursement & post disbursement covenants implemented for strengthening compliance level.

? Bank has appointed Agency for Special Monitoring (ASMs) for specialized monitoring in accounts of Rs. 250 crore & above for verification of transaction monitoring, inspections etc.

? Policies are in place for Red Flagging of accounts on observance of EWS & examination of fraud angle within a specified timeline in terms of regulatory guidelines.

Prompt reporting is ensured once account is declared as fraud, in RBI?s CRILC platform.

? ?The Bank has also digitised the stock and book Debt statement submission, which is real time and user friendly.

? The Bank has also initiated many tools in credit monitoring for robust monitoring like GST, ITR & Statement analyser for analysing the strength of the business.

Vigilance

The Vigilance administration in the Bank is professionally managed and an integral part of management function. It promotes clean business transactions, professionalism, productivity and ethical practices apart from control, monitor and supervision of various vigilance functions. The Bank has a very strong and transparent Vigilance Administration headed by Chief Vigilance Officer who oversees all vigilance functions of the Bank as per the guidelines from the Central Vigilance Commission. Participative / Proactive & Preventive vigilance are the important functions of Bank?s vigilance administration.

The vigilance machinery in the Bank also imparts knowledge at all levels about vigilance functions, extends help to various disciplinary authorities and appointing authorities to act swiftly and correctly in examining issues arising out of frauds, complaints and serious irregularities pointed out in various inspection reports of branches/ offices.

The Bank has beefed up its vigilance setup at Zonal level to conduct preventive audit of all branches at regular intervals and to act proactively on information to control the damage at bare minimum level. The vigilance team shall focus on preventive measures.

The vigilance function in the Bank consists of three sections:

1. Preventive Vigilance: Preventive measures hold greater significance in containing damage than detection and punishment of corrupt and other malpractices. Preventive measures such as inspections of sensitive areas of business, identification of sensitive posts and scrutiny of personnel posted thereon, ensuring observance of conduct rules, monthly meetings at branch level to discuss branch specific vulnerabilities, training programmes for staff, regular scrutiny of inspections and audit reports and circulars on preventive vigilance regularly issued and circulated by various business verticals were undertaken to reduce the number of vigilance cases.

2. Detective Vigilance: Detective Vigilance includes conducting regular and surprise inspection in the sensitive area to detect if there have been any instances of corrupt or improper practices by the staff, undertaking prompt scrutiny of annual property returns and take further action if called for, gathering intelligence from own source about the misconduct / malpractices, examining the same for logical conclusion through appropriate action after due process.

3. Punitive Vigilance: In addition to ensuring that employees at all levels indulging in wilful and mala fide transgressions of rules and provisions are not allowed to go unpunished, the Bank also ensures that bona fide decisions taken in normal course of business are evaluated objectively and with required prudence.

The vigilance function in the Bank enables proactive decisions by stressing on strengthening systems and procedures through preventive vigilance administration. It also plays a major role in identifying and plugging loopholes and providing inputs to the top management in framing policies in fraud prevention. The turnaround time of disciplinary cases improved due to proactive communication which helped in motivating the employees with quick redressals.

Legal Service

The Bank has a vibrant legal department consisting of qualified and experienced legal officers. The main role of the Legal

Department is to support and to provide assistance for various matters relating to Opinion, Documentation, Litigation, etc., referred by or in relation to various functional departments of the Bank. The department also provides support for references submitted by the various zones, regional offices, domestic and foreign branches, and subsidiaries of the bank on the matters related to legal aspects.

Further, in order to meet the digitalization of banking loan process, a set of documents for retail and SME facilities compatible with digital lending platform has been prepared which will enable Bank?s customers to execute the documents through electronic means.

Additionally, the Department had launched the Advocate Portal, an online system that facilitates the process of empaneling, renewing, and even reviewing advocates? performance. In order to facilitate the faster process for vetting of loan and mortgaged documents by Law Officers, the Department is currently working on introducing a portal for this purpose that may facilitate the real time verification of loan documents and the correction of discrepancies, if any, prior to disbursement of funds and flawless record keeping that will enable easy retrieval when needed.

Human Resources

The Bank has a rich talent pool of over 79,000+ employees on its rolls. The Bank has been continuously undertaking multiple initiatives for strengthening and developing its human resources through various activities to increase employee satisfaction, recruitment of right talent, addressing the training needs of employees, employee engagement, taking care of health and wellness of the employees and capability building.

The Bank has always been a forerunner in adopting and innovating new concepts, practices and processes. At the core of all activities are ‘PEOPLE? who are the key business enablers. Under the Bank?s organisational transformation initiatives envisaging people, processes and systems, the Bank launched various innovative employee centric initiatives and has also undertaken activities to revamp key systems and practices.

Bank has always been recognized for its HR Policies and Practices in the industry. During the last few years, the Bank is in the limelight for receiving number of awards in recognition of its HR initiatives, reforms and excellence. During the current year, Bank has been certified as ‘Great Place to Work? by ‘Great Employers Pvt. Ltd.?. It is a gold standard recognition framework in assessing, enabling and recognizing work place culture in the organizations around the globe. With this certification, Bank has also made a distinctive mark as one of the organization with best and progressive HR practices in the country.

The following initiatives have been taken during the year which have had a direct and significant performance:

Manpower Planning and Recruitment

The Bank has built a new scientific manpower planning model designed to estimate skill-based manpower needs at various levels. The model helps the Bank in taking key strategic decisions such as recruitment, deployment, promotions and trainings. During the FY 2022, The Bank hired a good number of specialised staff with expertise in niche and key focus areas to strengthen its capabilities in different domain areas.

Baroda GEMS "Growth and Empowerment Management System"

The Bank has put in place a scientific and objective driven Performance Management System (PMS) named Baroda GEMS, which ensures greater clarity of roles & expectations and is designed to suggest areas of improvement to employees as well. The platform provides recognition to meritorious Officers who have demonstrated extraordinary performance, while executing their duties.

This robust PMS paved the way for several waves of transformational initiatives, each intended to realise untapped productivity

? Scientific and personalised target setting with built-in market outlook

INSIGHT, a firstin the industry tool delivering personalised performance analytics and forward looking priorities for employees to get system generated feedback for improving their performance.

Job family and career path design is an opportunity for employees to pursue a career based on their choice and enabling a focussed career path.

‘Baroda Rewards for Individual & Team Excellence? (BRITE) is a holistic rewards and recognition programme that links performance to outcome.

Wellness and Fitness Drives

In addition to the Group Medical Insurance Policy, the Bank regularly conducts health checkup camps, fitness drives, yoga sessions, etc. to promote the health and well-being of its employees. Bank observed ‘Wellness Month? during November 2021 under which preventive health checkups and fitness drives were conducted. More than 200 activities like Health Checkup, Eye/Dental Checkup, Blood Donation Camp, Yoga/Zumba Camps, and Webinars by eminent health experts were organized. 17,000+ staff members and 700+ family members have been directly covered.

Employee Assistance Programme

Bank introduced ‘workplace counselling? called ‘Employee Assistance Programme? (EAP). Under this initiative, employees can seek counselling support for any issues including anxiety, depression, stress, insecurity, fears, loneliness, loss of self-confidence, inter-personal relationships and communication issues, family problems, bereavement, any traumatic situation, disease (like cancer, etc.), addiction, motivation, personal development, work-life balance or any other issues which disturbs peace of mind.

During the FY 2022, 335 workshops were conducted to sensitize the employees on various aspects of mental, psychological and emotional wellbeing covering more than 79,000 employees. More than 900 counselling sessions were conducted helping 723 employees to overcome their issues related to their mental and psychological health. These counselling services were facilitated through multiple channels such as face-to-face counselling, phone-call and video conferencing, emails and chats.

‘Voice of Barodians? - Employee Engagement Survey

As an organization with progressive HR practices, our Bank is open to employee suggestions and encourages constructive and honest feedback from all employees on a periodic basis. To facilitate this, Bank conducts ‘Voice of Barodians? - Employee Engagement Survey, to understand the level of employee engagement and the opinion of the employees on various factors affecting the engagement levels. As per the outcomes of the latest ‘Voice of Barodians-2021? survey, the overall employee engagement score for the Bank stood at 74% as against 63% in 2018, with an encouraging 11% increase in employee engagement levels vis-?-vis the previous survey.

Baroda Anubhuti Programme

It is an employee engagement programme designed to foster the spirit of team bonding and collaboration, camaraderie and creating a happy and fun workplace. Various initiatives like employee of the month, spot recognition-capturing ‘WoW? moments, fun hour at all branches/offices, local community service/ social activities are undertaken to enhance the overall employee engagement levels. Mandatory community service programmes are carried out through all branches/ offices once in six months.

Response to COVID-19 pandemic

The Bank had geared up to address immediate issues of keeping employees safe, provide banking facilities to customers/ general public and maintain continuity of business operations. Some of the measures put in place by the Bank for providing timely help and support to the employees during the 2nd and 3rd wave of pandemic are detailed under:

? Provision of isolation rooms for COVID positive staff members in cities which were in severe grip of the infection and facing dearth of availability of hospital beds.

? Reimbursement of hospitalisation/ home quarantine expenses incurred by employees for COVID-19 treatment.

? Reimbursement of cost of vaccination by the Bank to employees and their dependent family members.

? Payment of lumpsum amount of Rs. 25,000 to COVID infected staff members for defraying the miscellaneous expenses incurred for treatment etc.

? Payment of ex-gratia/ additional financial assistance of Rs. 30 lakh to dependents of employees in case of fatality due to COVID-19.

? Scholarship up to graduation level for children of employees who died in harness due to COVID-19.

? COVID helpline put in place at Zonal centres and Corporate Office for enabling the employees/ ex- employees to reach out in case of any emergency/ clarification related to COVID.

? Bank provided ‘Doctor-on-call? facility for all its employees for any concerns related to general health and wellness.

? One month gross salary paid as advance at "NIL" rate of interest to employees who were in dire financial assistance for treatment of COVID.

? Vaccination Drives were held by Zonal & Regional Offices in coordination with hospitals/ vaccination centres, local/ district authorities for immunization of staff/ their dependent members. More than 99% of the eligible employees have been vaccinated by the Bank.

? Vulnerable section of our employees viz. Disabled employees, employees suffering from chronic ailments, respiratory issues, pregnant lady employees etc. were permitted to work from home/ granted special leave during the pandemic situation.

Learning and Development

The Bank always believes that learning and development plays a vital role in shaping the organisation?s human capital. The Bank possesses a nimble and agile learning system. The pandemic enabled accelerated movement towards setting up of a robust digital training structure in the Bank which continues to cater to the learning and developmental needs of the employees.

The Bank?s learning Management System, i.e. Baroda Gurukul?s capabilities were harnessed to devise, deliver, and penetrate learning to all corners of the bank including its overseas centres.

During the year, emphasis was laid on development of simulation and games based learning owing to the latest developments in the learning pedagogy. Over 99% of the officer employees were imparted minimum 30 hours of training during the year through Apex Academy, 18 Zonal Academies and 4 Baroda Satellite Learning Units (BSLU?s) along with eLearning through Baroda Gurukul.

Bank has also formulated Individual Development Plans for its Executives and has also taken various interventions for ensuring their continuous growth and development.

Ex-employees

In recognition of the invaluable services of our Ex-Employees, the Bank continuously strives to put in place measures to make the post retirement life of our retired Barodians, comfortable and hassle-free.

The Bank has put in place various measures for the welfare of its ex-employees. It has also arranged to provide Health Check-up facility to Ex-employees through health check-up facilitator, similar to that of existing employees, however at their own cost to help them monitor their health. The health check-up packages are carefully designed looking to the various categories of employees and considering their affordability and requirements Bank has also appointed Zonal Nodal Officers for addressing the grievances of Retired Employees.

The Bank is fully prepared to migrate its Ex-employee portal to HR-Connect by the beginning of the next financial year. HR- Connect will provide one stop solution to its ex-employees to access various modules and facilities viz. Pension Pay Slips, PPO generation, Family Pension Conversion, Tax Computation, Holiday Home booking etc.

‘We Lead? - Comprehensive Leadership Development

Programme

As part of business transformation initiative, Bank embarked upon the second phase of WeLead programme named WeLead-II, for creating a robust and sustainable pipeline of leaders who are ready to take on leadership roles and play an instrumental role in driving the future growth of the bank.

WeLead-II assumed greater significance in the context of amalgamation, since an important component of the programme included cultural assimilation aspect of bringing high potential candidates from the -3- amalgamated entities.

The programme also focused on making the integration successful, realizing synergies, maintaining the pace of growth and becoming future ready organization. Around 1000 Executives in Scale-V and above have graduated from WeLead-II.

Reservation Cell

An exclusive cell has been functioning to monitor the reservation and other enabling provisions for Scheduled Castes (SC) /Scheduled Tribes (ST) / Person with Disabilities (PWD) /Ex-Serviceman (Ex-SM) and Other Backward Castes (OBC) employees. Executives in the rank of General Manager are appointed as Chief Liaison Officers for SC/ST/PWD and ex-serviceman employees and OBC employees, respectively, who ensure compliance of various guidelines pertaining to them.

With effect from February 1, 2019, reservation of 10% for Economically Weaker Sections (EWS) in all exercises for direct recruitment in the Bank was implemented. The Bank provides reservations for Persons with Disabilities (PWDs) at the rate of 4% of the total vacancies arising in officer, (identified posts) clerical and sub-staff cadre Government guidelines.

Caste category wise count as on March 31, 2022

Cadre	SC	ST	OBC	Ex-SM
Officer	7334	3296	11984	574
Clerk	4581	2848	8222	2899
Sub staff	2690	919	2485	822
Total	14605	7063	22691	4295
% to total staff strength	18.55%	8.97%	28.81%	5.45%

Periodical Meetings: The Bank holds meetings with the representatives of All India Bank of Baroda SC/ST (AIBOBSCST) Employees? Welfare Association and half yearly meetings with the representatives of All India Bank of Baroda OBC Employees? (AIBOBOBC) Welfare Association, for addressing their concerns.

Workshops and Training Programmes: Bank conducts following training programmes every year for members of AIBOBSCST Employees? Welfare Association and AIBOBOBC Employees? Welfare Association and Liaison Officers of SC/ STs and OBCs at its various training academies:

Pre-promotion training for SC/ST candidates. Workshop on reservation policy. Training programme on disciplinary proceedings.

Career Progression

Concerted efforts have been taken by the Bank for fostering career progression of employees for rewarding them for their performance and motivation. Horizontal movement of officers across different functions and overseas placements opportunities are provided to employees for wider exposure.

Thrust On Diversity & Inclusion

The Bank follows a non-discriminatory and equal opportunity policy for all its employees and is transparent in all issues relating to promotion, career path, transfer policy and employee benefit / welfare schemes. The Bank introduced

‘Job Roles? for visually impaired employees.

Further, in recognition of the concomitant responsibilities of women, the Bank has put in place various facilities to support women employees such as Sabbatical Leave, Health Checkup programme for women employees, establishment of Cr?che facility etc. among other initiatives.

The Bank conducts special training programme on capability building and motivation for its women employees and also creates awareness on POSH guidelines.

Document Management System

The Bank is one of the pioneer PSB to initiate implementation of Document Management System (DMS) (First among PSBs to implement Records Digitisation) by engaging professional companies to manage the records with an aim to give our Branches a leaner look having better feel and experience to our customers. Under Records Management System (RMS), physical records are barcoded, indexed and moved to Vendor?s warehouse for storage thereof, which can be retrieved any time as per Bank?s requirement. The space which is unlocked, is being utilized for setting up new ATMs/ E-lobbies or being surrendered to save the cost.

Document Management System (DMS), is a major step towards paperless banking under green initiative, encompasses scanning of identified documents (Loan Files/ HR documents/Legal documents and other critical documents) and uploading the scanned data on "Baroda Document Management System (BDMS) server, a digital repository. This is an ambitious project of our Bank under which around 36.45 crore images have already been scanned covering more than -5,300- branches. Also, around -2.21- lakh sq. ft. of space has been unlocked in identified Branches of BOB/eDena / eVijaya Bank. After successful implementation of Records Management System (RMS) / Document Management System (DMS) in Bank?s Metro & Urban and identifiedBranches of Semi-urban, it is now being implemented in the remaining identified Branches of Semi-urban and Rural branches of the Bank.

Premises Re-engineering

Following are some of the highlights of the Bank in an attempt to reduce carbon footprint:

? ?Bank has obtained Green Building Certificate rating for Baroda Corporate Centre and SILVER rating for Baroda Sun Tower Building) through IGBC (Indian Green Building Council). Four of Bank?s buildings across PAN India have green building rating and -43- more buildings are identified for Green Building.

? Bank is aiming to obtain platinum rating as per IGBC for its proposed Baroda Apex Academy Building in Ahmedabad.

? 145 branches in rural/semi urban areas are being run on Solar Energy only. Total 960 Tons of Carbon Dioxide Emission reduced as a result of using Green Energy/renewable/solar energy. Further, more than 600 branches/premises are identified to be powered by Solar Energy in phased manner.

? Dry Waste and Wet waste of Corporate Office buildings are being segregated and the wet waste is processed in Bio-Gas plant.

? A Large size Bio-Gas plant (capacity of 500Kg wet waste) is installed at Bank?s building at BKC, Mumbai which produces cooking gas (used in canteen) and organic manure (used in garden/lawns)

? Rain Water harvesting facility has been made available in some of the branches/premises and Bank is in the process for providing the same in many more branches/ premises.

Implementation of Official Language (OL) Policy

During the period under review, your Bank made outstanding progress in implementing the Official Language Policy of Government of India. Besides compliance of various statutory requirements under Official Language Policy of the Union Government and directives issued by RBI, your Bank moved forward to promote Hindi as a tool for business development. Your Bank adopted a well-structured Annual Action Plan for Official Language in order to achieve various targets set by the Government of India under its Annual Implementation Programme 2021-22 and the assurances given to the Committee of Parliament on Official Language during its visits to various offices/branches of the bank. All the assurances given to the Committee have been fulfilled within the prescribed time frame. Your Bank?s efforts earned accolades from Government of India from time to time.

The Meetings of Central Official Language Implementation

Committee, presided over by MD & CEO/ Executive Director of the Bank, were organized regularly on quarterly basis. Under the guidance from the Committee, various new initiatives were taken during the year FY 2022. Your Bank has made remarkable progress to provide Internet Banking, Mobile Banking and transaction SMS services, whatsapp banking service to its customers in Hindi and various other Regional languages for the convenience of customers. The Bank has also made arrangements for generation of loan sanction letters containing terms and conditions, in Hindi along with English in its loan processing package LLPS. Under various initiatives taken during the year, Your Bank organised an All India seminar on ‘Cyber Crime in Banking? (GOLD in Mysuru wherein representatives from RBI, Public Sector Banks, Insurance companies and other Financial Institutes took part. As a new initiative, Bank implemented Official language rating system for its Branches/ office and started ‘Bhashayi Choupal? programme for its staff members at regular intervals digitally. Bank?s Self-service Passbook printing machine ‘Kiosk? were enabled for printing of Passbook in Hindi for the convenience of customers. Books on topics such as ‘Compliance Culture in Banking? and ‘Retail Rin Margdarshika? were published. Hindi Diwas, Vishwa Hindi Diwas and Matrubhasha Diwas were celebrated at various offices/branches across India and overseas.

During the year, Town Official Language Implementation Committee (TOLIC) functioning under the auspices of the Bank at Baroda was selected for first Prize under "Rajbhasha Kirti Puraskar" scheme of Government of India for outstanding performance in the area of Official Language Implementation under linguistic Region ‘B?. Similarly, TOLIC functioning under the auspices of the bank at Varanasi, Jodhpur, Jaipur, Rajkot and Baroda were selected for awards by the respective regional implementation offices of Government of India Bank?s Zonal office at Baroda & Patna and Regional Office at Panaji & Varanasi were also awarded by the respective regional implementation offices of Government of India outstanding performance in the area of Official Language Implementation.

Bank continued with its unique scheme "Medhavi Vidyarthi Samman Yojana" for popularising Hindi in 70 universities of the country. Under this scheme, cash prizes and commendation certificates are given to two students securing First and Second positions in M.A. (Hindi) examinations.

Corporate Social Responsibility (CSR)

The Bank has a long legacy and tradition of actively contributing to the social and economic development of the communities through various development activities. The Bank as a responsible corporate citizen, continuously strives to contribute towards social welfare & environmental protection, particularly for the upliftment of the underprivileged sections of the society to make sustainable social changes in their lives. Skill development through training for gainful employment, human welfare and other social activities for women and farmers continue to remain the Bank?s key focus areas. The Bank is helping different organizations engaged in various community development and socio-economic welfare activities for the benefit of weaker sections and rural citizens.

The Bank has 64 Rural Self Employment Training Institutes (RSETIs) in 10 States/UTs across the country to impart skill development training to the youth of rural and semi urban areas for generating self-employment. Since inception, these centres have conducted 20,644 training programmes and imparted training to 5.75 lakh youth, out of which 3.85 lakh have already setup their own ventures or have secured wage employment. All the 64 RSETIs have been graded as "AA" (outstanding) by Ministry of Rural Development, GOI based on the overall performance/functioning of the RSETIs. The Bank has also set up 85 Financial Literacy Centres (FLCs) in 12 States/UTs which provide financial counselling services and education to the people in rural, semi-urban and urban areas about various financial products and services available from the formal financial sector. These centres also take up activities that promote financial literacy, awareness about banking services, digital banking, financial planning and amelioration of debt-related distress of an individual. As per RBI directives, Bank has also set up 93 Centres for Financial Literacy (CFLs) spread over 8 states and a Union Territory that are aimed at imparting financial literacy in tribal and backward blocks through innovative and participatory approach.

Bank has also rolled out a scholarship scheme for Girl Student School Toppers of class X and XII studying in Government schools in 9 Aspirational Districts in the states of Gujarat, Uttar Pradesh and Rajasthan.

As a part of Bank?s commitment towards protection of environment, under Environmental, Social, and Governance (ESG) principles, Bank has implemented a pilot of planting a tree against each Auto loan/Housing loan disbursement.

Bank has also donated to various social causes viz., distribution of protective Kits to social workers under Project Chhaav, donation of vehicles to AIISH, AIIMS and donating to Government Middle school of Chennai for its Smart Class project.

Domestic Subsidiaries and Joint Ventures

BOB Financial Solutions Ltd.

BOB Financial Solutions Limited (BFSL, formerly known as BOBCARDS Limited) is a wholly owned subsidiary of the bank. It is a non-deposit accepting Non-Banking Finance Company (NBFC). BFSL was established in the year 1994 to cater to the needs of a rapidly growing credit card industry.

BFSL was the first non-banking company in India to issue credit cards. The company?s core business is credit card issuance. It also provides support to the bank by carrying out merchant acquiring operations on the Bank?s behalf.

FY 2022 was a watershed year for BOB Financial. The aspiration to grow into a leading Indian credit card issuer was evident in the many firsts, achievements and investments that underlined the financial year, in spite of the challenges brought about by the pandemic that continued in varying degrees.

Product launches and innovations were one of the key highlights of FY 2022, right from the issuance of RuPay credit cards to the global first launch of ConQR - the two-in-one product combining credit card and QR acceptance that was done in partnership with Mastercard (as it owns the patent). The company continued to implement its two-pronged growth strategy (of BoB customers on one side and key partnerships on the other) by entering into co-brand partnerships with both large and trusted organizations as well as new age Fintechs. These included partnerships with Fintechs like FPL Technologies (for OneCard) and CreditAI (for Unnati - the credit card for farmers), thereby positioning the BOB Financial as an issuer that is receptive to new age partners. Co-branded credit cards were also launched with IRCTC and the Indian Navy. The Indian Navy co-brand helped BOB Financial to expand the portfolio of co-branded credit cards with the Defence Forces, as Memoranda of Understanding were signed with the Indian Army, Assam Rifles and Indian Coast Guard for launch of co-branded credit cards.

The company issued more than 5,00,000 new credit cards in FY 2022, doubling the new acquisition done in FY 2021.

It also joined the elite club of issuers with a base of 1 Million or more credit cards, thus positioning it as a force to reckon with, in the Indian credit cards industry. In March 2022 itself, more than 1,30,000 new credit cards were issued, making BOB Financial one of the Top 5 issuers (estimated) for the month.

Retail spends more than doubled compared to FY 2021, clocking approximately Rs. 7,000 crore. This growth was made possible by relevant customer offers across merchant categories, in partnership with leading offline and online merchants. At any given time, more than 100 customer offers were live across regular and EMI spends.

The growth in retail spends was also a result of multiple initiatives towards improving customer experience, in addition to launch of relevant products and offers. Initiatives like self-service through website, IVR and SMS or programs like Add-On cards for family, referral programs, topical campaigns on social media etc. all helped in increasing customer engagement, leading to more than doubling the retail spends.

The focus on enhancing technology infrastructure continued in FY 2022. The implementation of FirstVision - the leading Card Management System and the launch of 100% digital Credit Card journey on TABIT - Bank of Baroda?s digital origination platform were the flagship achievements.

Several other initiatives across the customer lifecycle, from origination to usage to retention, were undertaken in line with the strategic intent of being a top ranking, customer-centric credit card issuer.

The company also continued to invest both in human resources as well as points of presence, to effectively align with the 18 Zones and 148 Regions of Bank of Baroda. This focus on leveraging the Bank?s distribution strength while building its own is in line with BOB Financial?s growth aspirations.

(Rs. in crore)

	BOB Financial Solutions Ltd.
	FY 2021	FY 2022
Total Assets	972.16	1562.45
Net Profit/(Loss)	10.73	10.07
Net NPA levels	NIL	29.07
Credit rating	Crisil A1+	Crisil A1+
	India rating	India rating A1+
	A1+
Return on Assets	1.14%	0.66%

BOB Capital Markets Ltd.

BOB Capital Markets Ltd. (BOBCAPS), a wholly owned subsidiary of Bank of Baroda is a SEBI registered Category-I Merchant Banker and also a Stock Broker with memberships of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

BOBCAPS offers a wide spectrum of financial services that includes fund raising from primary markets /PE funds, debt syndication, stressed asset resolution, equity valuation, mergers and acquisitions advisory and stock broking (both institutional and retail). It has two operating segments, viz. Investment Banking and Broking & Distribution.

BOBCAPS further strengthened its position in both its business segments in FY 2022, and remains optimistic about the future potential of its businesses, primarily on account of growing depth of Indian capital markets and post-COVID resurgence in the economic activities in the country. However, BOBCAPS acknowledges the challenges emanating from the recent rate actions by several central banks across the world including by the RBI and ongoing geo-political conflicts.

(Rs. in crore)

	BOB Capital Markets Ltd
Particulars	FY 2021	FY 2022
Total Assets	175.59	187.97
Net Profit/(Loss)	9.34	7.72
Customer base (Nos)	26,715	35,191
Total number of branches	1	2

Baroda Global Shared Services Ltd.

Baroda Global Shared Services, Bank?s wholly owned subsidiary resulted from a strategic decision made by the Bank in 2017, with an intention of integrating service functions into a single entity thus reducing service duplication and business unit silos, creating synergies and economies of scale. Bank has been able to achieve improved efficiency and cost saving because of centralisation. It has also led to redeployment of large workforce to Branches from job roles that could be automated. This setup has enabled the Bank to focus more on the sales and service function. The setup also has contributed significant value by sell initiatives for the Bank.

Based on the successful set-up and scaling-up of centralised processing by BGSS, Bank expressed confidence in BGSS by deciding to utilise its capabilities in the new areas of sourcing loans and improving collection efficiency, thereby augmenting Bank?s capacity. In FY 2021-22, BGSS launched Direct Sales Team and Collection Unit for the Bank.

To aid Bank?s Financial Inclusion objectives, BGSS has been empanelled as a Corporate Business Correspondent of the bank to deploy BC agents Pan-India (especially in semi-urban and rural areas) in FY 2022.

The Shared Services also ensures robust and stringent controls in place through various internal and external assessments conducted from time to time, leveraging the centralised execution for availability of data sets through common platforms. Some of the key achievements of BGSS are as follows: Some of the key achievements of BGSS from the last FY:

1. More than 750 Direct Sales Team (DST) resources were deployed to generate additional Loan business (HL, AL, EL & LAP) for the Bank.

2. More than 90% month on month collection of instalments achieved during FY 2022 by the Collections Unit set-up at Vadodara through Feet-on-Street (FOS) resources and Vendors managed by BGSS.

3. Transaction processing activities related to Bank products is rolled out through Business Correspondent (BC) points appointed and managed by BGSS.

4. BGSS continue to excel in Cross Sell business by booking Rs.1,000 crore. in Trade Finance and sourcing more than Rs.10,000 crore. in retail loans through contact centre (including through Digital Lending Platform).

5. As part of continuous cum ongoing exercise to improve customer experience especially in terms of doing business with EASE, some of the initiatives taken by BGSS include on boarding of more than 1,000 customers in Baroda Insta-Trade Platform (Digital platform for customers to initiate and process trade transactions), rolled out Queue Management system (QMS) to improve customer service at Branches and deployed resources across locations to improve processing accuracy and speed for Home Loan File Log-ins at Specialised Mortgage Stores (SMS).

6. A dedicated IT Platform was set up to help Implement BC Sakhi on-boarding across various districts of UP state to facilitate banking transactions in rural areas of UP.

7. BGSS continues to grow and improve efficiency across metrics like productivity, First Time Right (FTR), turnaround time (TAT), ATM uptime and error-reduction through various initiatives.

Barodasun Technologies Ltd.

Barodasun Technologies Limited has been incorporated as a wholly owned subsidiary of Bank of Baroda. The company was registered on July 5, 2017 with the Registrar of Companies, Mumbai, Maharashtra. The company has been formed to provide system integrator services, consultancy and IT development services on matters relating to IT enabled business solutions / IT software product implementation across various lines of business for the Bank.

The Company is yet to commence full-fledgedoperations and it is envisaged to initiate activities like programme / project management services to implement enterprise-wide IT projects and development of financial products and solutions to effectively cater to various business needs providing technological edge across different business verticals of the Bank.

The Nainital Bank Ltd.

The Nainital Bank Limited (NBL), originally promoted by Late Bharat Ratna Pandit Govind Ballabh Pant and others in 1922, became a subsidiary of Bank of Baroda in the year 1973. The Bank?s holding in Nainital Bank Ltd is 98.57%.

NBL has its registered office at Nainital and has operations in five states: Uttarakhand, Uttar Pradesh, Delhi and National Capital Region (NCR), Haryana and Rajasthan. NBL has 164 branches as on March 31, 2022. The total business of NBL increased to Rs. 11,698 crore on March 31, 2022 from Rs. 11,441 crore as on March 31, 2021. The Bank posted a net profit of Rs. 33.01 crore in FY 2022 against a net profit of Rs. 1.26 crore during the previous year.

Baroda BNP Paribas Asset Management India Pvt. Ltd (BBNPA AMC)

BBNPP AMC is a joint venture between Bank of Baroda (50.10% shareholding) and BNP Paribas Asset Management Asia Ltd (49.90% shareholding). This Company is the Asset manager for Baroda BNP Paribas Mutual Fund. Bank of Baroda and BNP Asia had signed binding agreements on October 11, 2019 to merge their Asset Management and Trustee Companies in India. On receipt of regulatory approvals and completing the necessary formalities under SEBI(MF) Regulations, the entities got merged effective March 14, 2022. The merged entity leverages strength of two partners - Bank of Baroda?s strong brand name, reach and understanding of retail market and BNP Paribas?s global know-how to grow the business.

Following the merger, the product range, AUM as well as share of equity to AUM has increased substantially with touch points in 90 towns and cities across India.

(Rs. in crore)

Baroda BNP Paribas Asset Management India Pvt. Ltd.

Particulars	FY 2021	FY 2022
Total Assets	78.39	147.18
NetProfit/	1.76	(20.00)
Assets under Management	8,220.15	23,393*
Equity to overall AuM (%)	37%	60%

*Includes advisory AuM of Rs.2,188 crore.

IndiaFirst Life Insurance Company Ltd.

Headquartered in Mumbai, IndiaFirst Life Insurance Co. Ltd., is one of the country?s youngest life insurance companies, with a paid-up share capital of Rs.663 crore. The company is a domestic subsidiary of Bank of Baroda promoted along with Carmel Point Investments India Private Limited, owned by private equity funds managed by Warburg Pincus LLC. Union Bank of India is company?s third strategic partner.

In FY 2022, IndiaFirst Life is the fastest growing Life Insurer in Individual New Business APE at 50% YoY growth with 2.4% private market share and grew at 3.2 times the overall Life Insurance Industry (including LIC). This super record of growing at a faster rate than overall Industry has been upheld by IndiaFirst Life for last consecutive 8 years (since FY 2014-15). The company improved its ranking by 1 position to 11th in Individual New Business APE (Annual Premium Equivalent) among the private peers as compared to last year and has assets under management (AUM) at Rs.18,932 Crores as on 31st March 2022.

IndiaFirst Life was certified as a Great Place to Work (GPTW) for the fourth time in a row, a recognition considered as the gold standard for defining great workplaces across business, academia and government organisations along with being recognised among the ‘Best Workplaces in BFSI? by GPTW BFSI Survey fourth time in a row. The Company was also awarded the "Life Insurance Company of the Year" at the India Insurance Summit 2022.

India Infradebt Ltd.

India lnfradebt Limited (Infradebt) is the first Infrastructure Debt Fund (IDF) NBFC to commence operations in India. Bank of Baroda and ICICI Bank are the Sponsors of Infradebt, while other shareholders include Citicorp Finance (India) Limited and Life Insurance Corporation of India. Infradebt finances the relatively safe, completed infrastructure projects which have achieved at least one year of commercial operations. Infradebt has been rated AAA/Stable outlook by CRISIL, ICRA and India Ratings since inception. Infradebt also enjoys 100% income-tax exemption on all its income.

The synergy with the Bank arises from Infradebt?s focus on lending to strong, stable infrastructure projects - mainly renewable energy projects and road projects, thus promoting green energy in India and contributing to nation building. Infradebt business has grown steadily, with a loan book as of Rs.14,729 crore, Net Profit of Rs.330 crore (as per Indian GAAP) and Return on Equity of 14% during FY 2022. Infradebt has also been paying dividends continuously for the past five years.

A brief summary of all the Bank?s domestic subsidiaries and Joint Ventures is given below:

Entity	Owned funds	Total assets	Net profit	Offices	Staff
BOB Financial Solutions Ltd	287.56	1562.45	10.07	40	410
BOB Capital Markets Ltd.	165.03	187.97	7.72	2	103
Baroda Sun Technologies Limited	4.55	4.47	0.09	1	1
Baroda Global Shared Services Ltd.	20.53	32.02	9.07	5	1113
The Nainital Bank Ltd.	607.04	8337.85	33.00	5	941
Baroda BNP Paribas As- set Manage- ment India Pvt. Ltd.	152.57	147.18	-20.00	13	150
Baroda BNP Paribas Trustee India Pvt. Ltd.	0.09	0.24	0.012	1	1
IndiaFirst Life Insurance Company Ltd.	493	19,765	(282)	29	3,272
India Infradebt Limited	2,431.1	16,922.8	329.9	1	25

Awards

In recognition of Bank?s excellent performance in financial, digital front and other unique initiatives, the Bank was conferred with many awards and accolades during the FY 2022 which are given below;

Month	Details of the Award received during FY 2022
April 2021	Bank of Baroda was declared Joint-Winner under Digital Lending & Winner under Digital Services in the PSB- Merged category at ASSOCHAM National E-Summit & Awards - Banking & Financial Lending Companies
May 2021	Bank of Baroda won the Silver Award in the "Best Public Sector Bank of the Year " category at the 20th Edition of Outlook Money Awards Additional information:
	Outlook Money Awards Knowledge Partner, Care Ratings Ltd., and its eminent Jury board found Bank of Baroda has done well in all the parameters in FY20 compared to other Public Sector Banks. BoB?s Composite score is 3.83 out of 5.
June 2021	Bank of Baroda was recognised at the 4th edition of The Economics Times Iconic Brands of India 2021, which featured success stories of the most distinguished brands. Additional information:
	Executive Director Shri Vikramaditya Singh Khichi virtually addressed the audience at the ‘The ET Iconic Brands of India 2021? Virtual Summit, which featured success stories of the most distinguished brands, while also outlining their DNA and knowing what makes brands stand out from the clutter. The virtual awards also carried a video byte of Shri Purshotam, CGM - Retail Liabilities, WMS, Marketing, and Capital Markets & NRI Services, speaking about the brand?s vision during the pandemic.
September 2021	Bank of Baroda was conferred with the award for Best Digital Banking Product for bob World at the 4th Edition of The Economic Times BFSI Innovation Tribe Awards.
October 2021	Bank of Baroda, its sponsored RRBs, UTLBC Dadra & Nagar Haveli & Daman & Diu (Convenor Bank of Baroda) bags 6 top performing awards under various campaigns held for enrolment of Atal Pension Yojana from Pension Fund Regulatory and Development Authority (PFRDA) Additional information:
	Leadership Capital 3.0 (Jan-Feb 2021) award of excellence to Best Performing Managing Director, Shri Sanjiv Chadha, MD & CEO, Bank of Baroda APY Big Believers 3.0 (March 21) awards of appreciation to Best Performing Executive Director, Shri Vikramaditya Singh Khichi Leadership Capital 3.0 (Jan-Feb 2021) award of Excellence to Best Performing Chairman of RRB, Shri Prabhat K Sharma, Chairman, Baroda Gujarat Gramin Bank.
	APY Big Believers 3.0 (March 21) awards of Par Excellence to Best Performing Chairman of RRB, Shri Prabhat K Sharma, Chairman, Baroda Gujarat Gramin Bank.
	Leadership Capital 3.0 (Jan-Feb 2021) award of Excellence to Best Performing Chairman of RRB, Shri R.C. Gaggar, Chairman, Baroda Rajasthan Kshetriya Gramin Bank Annual Award, Award of Par Excellence, Best Performing UTLBC, Dadra & Nagar Haveli and Daman & Diu.
December 2021	Bank of Baroda has been recognised among the 50 Most Trusted BFSI Brands of India, 2021 by Team Marksmen in association with NDTV 24X7
December 2021	Bank of Baroda was recognized in four categories at the Chamber of Indian Micro Small & Medium Enterprises? (CIMSME) MSME Banking Excellence Awards 2021.
	Best MSME Bank - Winner
	Best MSME Friendly Bank - Winner
	Best Branding - Runner-up
	Best Bank for Promoting Social Schemes - Runner-up
February 2022	Bank of Baroda was conferred with two awards "Best in Innovation" and "Best In Fintech Initiative" at the 26th Edition of the Business Today-KPMG Best Banks Survey 2020-21
February 2022	Bank of Baroda has been named the Best Technology Bank for the 2nd year in a row at Indian Banks? Association?s (IBA) 17th Annual Banking Technology Conference, Expo & Awards.
	Bank of Baroda was also the Runner-Up for Best Use of AI/ML & Data Analytics and Best IT Risk Management & Cybersecurity.

Dividend Distribution Policy

Board of Directors of the Bank has recommended a dividend of Rs. 2.85 per share for the financial year ended March 31, 2022. The total outgo in the form of dividend will be Rs. 1,473.84 crore. The payment of dividend is subject to requisite approvals. The dividend distribution policy is given in this Annual Report and is also available on the Bank?s website.

Board of Directors (Appointment / Cessation of Directors during the year) Appointments

? Smt. Parvathy V. Sundaram was appointed as RBI Nominee Director w.e.f. April 13, 2021 by the Central Government u/s 9 (3) (c) of the Banking Companies Acquisition and Transfer of Undertakings) Act, 1970, until further orders, vice Shri Ajay Kumar.

? Shri Alok Vajpeyi was elected as Shareholder Director under section 9 (3) (i) of the banking Companies Acquisition and Transfer of Undertakings) Act, 1970, for a period of three years from July 9, 2021 to July 8, 2024.

? Central Government has extended the term of office of Shri Ajay K. Khurana, Executive Director u/s 9 (3) (a) of the banking Companies Acquisition and Transfer of Undertakings) Act, 1970, for a period of two years beyond his currently notified terms which expires on regarding September 19, 2021, or until further orders, whichever is earlier.

? Central Government has extended the term of office of Shri Vikramaditya Singh Khichi, Executive Director u/s 9 (3) (a) of the banking Companies Acquisition and Transfer of Undertakings) Act, 1970, for a period beyond September 30, 2021 till the date of his superannuation, i.e. July 31, 2022, or until further orders, whichever is earlier.

? Shri Joydeep Dutta Roy was appointed as Executive Director w.e.f. October 21, 2021 by the Central Government u/s 9 (3) (a) of the banking Companies Acquisition and Transfer of Undertakings) Act, 1970, for a period of three years from the date of assumption of office, or until further orders, whichever is earlier.

? Shri Srinivasan Sridhar was re-elected as Shareholder Director under section 9 (3) (i) of the banking Companies Acquisition and Transfer of Undertakings) Act, 1970, for a period of three years from December 12, 2021 to December 11, 2024.

? Shri Ajay Singhal was nominated as Part-Time Non- Official Director on the Board of Bank of Baroda w.e.f. December 21, 2021 under section 9 (3) (h) of the banking Companies Acquisition and Transfer of Undertakings) Act, 1970, for a period of three years from the date of notification, or until further orders, whichever is earlier.

? Dr. Hasmukh Adhia was re-nominated as Part-Time Non- Official Director on the Board of the bank by the Central Government u/s 9 (3) (h) of the banking Companies Acquisition and Transfer of Undertakings) Act, 1970, his period of appointment as non-executive Chairman has been extended for a further period of two years with effect from March 1, 2022, or until further orders, whichever is earlier.

Cessations

? Shri Shanti Lal Jain ceased to be Executive Director w.e.f. September 1, 2021, on his appointment as Managing Director & Chief Executive Officer of Indian Bank.

? Shri Ajay Kumar ceased to be RBI Nominee Director w.e.f. April 13, 2021, on the appointment of Smt. Parvathy V. Sundaram.

Board Evaluation

Bank is following Government of India guidelines dated August 30, 2018 for PSB Governance Reforms - Enhancing governance through improved effectiveness of non-official directors.

Auditors? Compliance Certificate

Governance: the The Auditors? Compliance Certificate compliance of the conditions of Corporate Governance for the year 2021-22 is annexed with this report pursuant to "Part E" of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Business Responsibility Report

Business Responsibility Report as required by SEBI has been hosted on the website of the bank (www.bankofbaroda. co.in). Any member interested in obtaining a physical copy of the same may write to the Company Secretary of the bank.

Directors? Responsibility Statement

The Directors confirm that in the preparation of the annual accounts for the Financial Year ended March 31, 2022

a) The applicable accounting standards had been followed along with proper explanation relating to material departures, if any;

b) The accounting policies framed in accordance with the guidelines of RBI were followed and the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the bank for that period;

c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of applicable laws to the Bank for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

d) The Directors had prepared the annual accounts on a going concern basis; and

e) The Directors had ensured that internal financial controls followed by the Bank are in accordance with guidelines issued by the RBI in this regard and that such internal financial controls are adequate and were operating effectively. Explanation: For the purposes of this clause, the term "internal financial controls" means the policies and procedures adopted by the Bank for ensuring the orderly and efficient conduct of its business, including adherence to Bank?s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information;

f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Acknowledgements

The Directors placed on record their appreciation for the contribution made by Shri Shanti Lal Jain outgoing Executive Director and Shri Ajay Kumar.

The Directors express their sincere thanks to the Government of India, RBI, Securities and Exchange Board of India, other regulatory authorities and the overseas regulators for their continued co-operation, guidance and support.

The Directors would like to take this opportunity to express sincere thanks to our valued clients for their continued patronage and support.

The Directors acknowledge with deep appreciation for the cooperation extended by all shareholders, banks and financial institutions, rating agencies, stock exchanges and all well-wishers in India and abroad.

The Directors also take this opportunity to place on record deep appreciation for the hard work and dedication of the employees of the bank.

Sanjiv Chadha

Managing Director and CEO