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. As on 31 March 2023, the Bank's distribution network stood at 8,200 domestic branches, 93 overseas branches, 11401 ATMs & cash recyclers. It opened new 73 domestic branches and merged 41 branches with existing branches during FY 2023.

Bank of Baroda Chairman Speech

Dear Stakeholders,

It is my privilege to share with you the overall developments in the economy, banking sector and journey of Bank of Baroda in FY 2022-23 (FY 2023).

Global economy

The Financial Year 2023 started amidst the shadow of war between Russia and Ukraine. The world had gradually started recovering from the economic slowdown and hardships due to the Covid19 pandemic, and it was at this time that geo-political tussle occurred between Russia and Ukraine. These two countries being the key suppliers of major commodities like food and energy, the war between these two countries led to supply chain disruptions and substantial jolt to commodity markets globally.

Following this, the prices of energy, food grains and metals have shot up substantially which has intensified infiationary pressures across advanced economies (AEs) and emerging market economies (EMEs). Subsequently central banks of the major economies were compelled to tighten their monetary policy stances. The US Fed Reserve has increased its policy rates by 500bps (cumulative) since March 2022, while Bank of England (BoE) and European Central Bank (ECB) followed with rate hikes of 440bps and 370bps respectively, during the same period.

The emerging market and developing economies also experienced the shock waves of different wave lengths. Many countries witnessed huge outflow of capital which put pressure on the value of their domestic currencies. According to IMF, the global economy has moderated to 3.4% in 2022 from 6.3% in 2021 and is expected to further come down to 2.8% in 2023. This reflects the severity of geopolitical issues on the global economy.

Domestic economy

Coming to the domestic economy, the Indian economy has comparatively performed well and positioned better through its strategic policy decisions in the context of the adverse global economic scenario as mentioned above. This was mainly because of proactive fiscal policy and regulatory measures which were already aligned to revive the economy with stimulus policy measures in order to come out of the sluggishness in

economic activities caused by the Covid-'19 pandemic. Further India's quick response to International issues like the Russia-Ukraine war and related matters through country's diplomatic policies have also helped to safeguard the Indian economy from a free fall to a large extent.

India's GDP growth for the FY 2023 has been registered at 7.2%, which can be considered as a good number as compared with the growth of other economies in the world. Inflation (CPI) level in the country averaged at 6.7% during the FY 2022-23 which is marginally above the RBI's CPI inflation target of 4% within a band of +/- 2%. The inflation on a monthly basis during the year ranged from 5.7% to 7.8%. The RBI has projected CPI inflation at 5.2% for FY2023-24.

Banking scenario

With regard to Banking Sector, despite intensified pressures from the global financial markets and the global banking crisis, it may be noted that Indian Banking industry withstood these adversities and performed relatively well. The Indian banking industry is adequately capitalised and growing healthy in terms of asset size, total business and profitability. The RBI has taken several measures to protect the banking

sector through its monetary policy and through its various Developmental and Regulatory initiatives.

During FY2023, RBI has increased the repo rate by 250bps from 4% to 6.50%. This was in response to prolonged global geopolitical tensions, elevated commodity prices, continued supply bottlenecks, tightening global financial conditions and its consequent impact on the Indian financial system including the banking sector.

Apart from regulating policy rates, RBI has taken a lot of initiatives in the areas of liquidity management, good governance, improving customer service, KYC, Payment and settlement system, issuance of Bonds, etc., to strengthen the Banking system of the country and to enable Banks to withstand the unprecedented uncertainty arising out of the global and domestic economic issues.

In the meantime, the Government of India has come out with many policy stimulus to boost the financial sector and in turn the banking sector of the economy. The government's investments and policy initiatives to spur economic activities in key areas such as mining, manufacturing, construction, infrastructure, MSME, Agriculture etc., helped to revive the economy and to increase demand for Bank credit. Launch of EASE 5.0 (Enhanced Access and Service Excellence) in FY

2023 as a continuation of the EASE Reforms Agenda for the Public Sector Banks, with a focus on digital customer experience and integrated inclusive banking, with emphasis on supporting small business and agriculture, has been a significant contributor in the strengthening of Public Sector Banks.

During FY 2023, Bank credit (non-food) rose by 15.4% as compared with 8.6% in FY 2022. The aggregate deposits of the SCBs grew by 9.6% in March 2023 as compared with 8.9% growth in March 2022. Considering the Government's initiatives, a visionary budget for FY

2024 and the RBI's policy initiatives, the Bank credit is expected to grow further in the coming financial year as well.

Bank of Baroda's performance in FY 2023

Bank of Baroda performed exceptionally well in the financial year 2023. Total Business of the Bank increased to the level of Rs 21.73 lakh crore by registering 17% growth on YoY basis. Operating profit of the Bank reached to Rs 26,864 crore, registering a growth of 20% on a YoY basis. The Net Profit of the Bank has nearly doubled to Rs 14,110 crore in FY 2023 from Rs 7,272 crore in FY 2022.

The impressive growth in business levels as well as in profits reflects the success of efficient management and the commitment of its work force which together improved its profitability, asset quality and customer happiness.

Dividend to the Shareholders

I am happy to inform you that the Bank has proposed a dividend of Rs. 5.50 per share for the financial year ended 31st March 2023, which is a clear signal of the Bank's improving profitability and operational efficiency.

Experience a new Digital World & environment friendly banking with BoB

It is my privilege to inform you that your bank has always been in the forefront to offer its products and services based on the latest technology and keep improving upon its offerings to our customers. We are second to none in adopting the latest technology based banking. Our mobile banking app "bob world" is one of the best in industry. We offer almost all banking services on our digital banking platform in a most convenient and safe way. We strongly believe that our customers always deserve the best and we shall continue to strive for it.

The bank believes that success should not be measured by financials alone, it should also take into account the quality of the business generated. The bank is in the process of revamping its business model by including Environmental, Social and Governance (ESG) elements, the key factors for a sustainable business model, which will help us to reduce the carbon footprints and in turn will improve our ESG ratings.

Another major milestone in our journey is the launch of ‘Our Code of Ethics' on 21st May 2022. We are proud to be amongst the pioneers in adopting such an elaborate code and devising an institutional mechanism for handling the ethical concerns and issues in the organisation.

Your bank is committed to adopting best recognised corporate governance practices and is continuously benchmarking itself against each such practice. The adherence to best corporate governance practices is an integral part of the Bank's operations.

Going forward

The banking sector being at the heart of the economy to channelise money into growth sectors, there is a huge scope for banking companies in India to grow faster and in a healthy fashion. Your bank is all set to tap the potential benefits by streamlining its business strategies backed by latest available technology. The bank is also well prepared to face any challenges arising out of any adverse changes in external geopolitical conditions and domestic issues.

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

I would like to express my thanks to all stakeholders of the Bank including our shareholders and customers for their continued support and trust in our Bank. I would like to place on record my appreciation for all our Barodian colleagues (employees) for their sincerity,

enthusiasm and wholehearted support to the Bank and its growth journey which has helped the bank to perform exceptionally well. 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 firmly believe that the Bank will continue to perform well to achieve its business goals and social commitments for a more prosperous, inclusive, resilient, and sustainable future and will add more happiness to its stake holders in the days and years ahead.

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. As on 31 March 2023, the Bank's distribution network stood at 8,200 domestic branches, 93 overseas branches, 11401 ATMs & cash recyclers. It opened new 73 domestic branches and merged 41 branches with existing branches during FY 2023.

Bank of Baroda Directors Reports

"Your Directors have pleasure in presenting the One Hundred and Fifteenth 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, 2023 (FY 2023)."

Business Performance & Key Financials

(Rs. in crore)

Particulars		FY 2022	FY 2023
Global Deposits		10,45,938.56	1203687.79
of which - International Deposits		1,18,927.99	156312.58
Domestic Deposits		9,27,010.57	1047375.21
of which	Current Account Deposits	68,779.64	75110.67
	Savings Bank Deposits	3,41,343.27	367399.83
Domestic CASA Deposits		4,10,122.92	442510.50
Domestic CASA to Domestic Deposits (%)		44.24	42.25
Net Advances		777155.18	940998.27
of which	Domestic Advances	653381.55	776589.63
	International Advances	123773.63	164408.64
Global Gross Advance		818120.39	969548.31
Total Business (Global Deposit + Global Gross Advance)		1864058.95	2173236.10
Total Assets		12,77,999.83	1458561.54
Net Interest Income (NII)		32621.34	41356.01
Other Income		11483.95	10025.84
Of which Trading Gains		2728.76	1062.50
Operating Income (NII + Other Income)		44105.29	51381.58
Operating Expenses		21716.44	24518.31
Operating Profit		22388.85	26863.54
Provisions (Other than Tax)		13002.41	7136.90
of which-Provisions for NPAs and Bad debts written off		14640.12	4,350.52
Profit Before Tax		9,386.44	19726.64
Provision for Tax		2,114.16	5617.02
Net Profit		7,272.28	14109.62
Appropriations/Transfers
Statutory Reserve		1,814.34	3,527.40
Capital Reserve		523.35	92.57

Particulars	FY 2022	FY 2023
Revenue and Other Reserves
I) General Reserve	827.40	7274.12
II) Special Reserve u/s 36 (I) (viii) of the Income Tax Act 1961	250.00	300.00
III) Investment Reserve Account	0.00	0.00
IV) Investment Fluctuation Reserve	2,368.42	30.00
V) Statutory Reserve (Foreign)	14.93	41.28
Proposed Dividend	1473.84	2,844.25

Total deposits of the bank increased to '12,03,688 crore during FY 2023 from '10,45,939 crore during FY 2022, there by registered a growth of 15.1 % on a YoY basis. The domestic CASA of the bank recorded a growth of 7.9% on YoY basis, to reach to the level of '4,42,511 crore, during FY 2023. The Domestic Deposit marked a growth of 13% on a YoY basis, which increased to '10,47,375 crore, during the FY 2023. The Net advance of the bank increased to '9,40,998 crore during FY 2023 from '7,77,155 crore during FY 2022, there by recorded a growth of 21.1% during the period. The Global Gross advance of the Bank reached to the level of '9,69,548 crore in FY 2023 as compared with '8,18,120 crore in FY 2022 by registering a growth of 18.5% on a YoY basis. The Total Business of the Bank grew to '21,73,236 crore in FY 2023 crore from '18,64,059 crore in FY 2022, registered a growth of 16.6% on YoY basis.

Net Interest Income of the Bank increased to '41,356 crore in FY 2023 from '32,621 crore in FY 2022, registered a growth of 26.8% on a YoY basis. Other Income of the Bank stood at '10,026 crore in FY 2023 which was at '11,484 crore in FY 2022. Operating expenses of the Bank stood at '24,518 crore in FY 2023 as compared with '21,716 crore in FY 2022. Operating Income of the Bank increased to '51,382 crore in FY 2023 from '44,106 crore in FY 2022, registered a growth of 16.5% on a YoY basis.

The Bank reported a Net Profit of '14,110 crore in FY 2023 which was nearly double of previous year's Net Profit of '7,272 crore. The Operating profit of the Bank grew by 20% to reach to '26,864 crore in FY 2023 as compared with '22,389 crore in FY 2022.

Key Performance indicators

Key Performance Indicators	FY 2022	FY 2023
Net Interest Margin - Global (%)	3.03	3.31
Cost-Income Ratio (%)	49.24	47.72
Return on Average Assets (ROAA)(%)	0.60	1.03
Return on Equity (%)	11.86	18.34
Book Value per Share (Rs.)	118.97	148.80
Basic EPS (Rs.)	14.06	27.28

Net Interest Margin (NIM) global improved to 3.31% in FY 2023 as against 3.03% in FY 2022. Cost to income ratio decreased to 47.72% in FY 2023 from 49.24% in FY 2022. Return on Assets for FY 2023 improved by 43 bps to 1.03% in FY 2023 from 0.60% in FY 2022, reflects exceptional performance in profitability. Return on Equity increased by 648 bps to 18.34% in FY2023. Book value per share increased to '148.80 in FY 2023 from '118.97 in FY 2022. Earnings Per share increased to '27.28 in FY 2023 from '14.06 in FY 2022.

Average Cost & Yield of funds and Average Interest earning Assets

Key Performance Indicators	FY 2022	FY 2023
Average Cost of Funds (%)	3.64	4.08
Average Yield on Funds (%)	6.49	7.17
Average Interest Earning Assets (Rs. in crore)	10,77,177	12,49,846
Average Interest Bearing Liabilities (Rs. in crore)	10,24,804	11,81,750

The average cost of fund and yield of fund stood at 4.08% and 7.17% in FY 2023. Average Interest bearing asset increased to '12,49,846 crore in FY 2023 from '10,77,177 crore in FY 2022. The Average Interest Bearing Liabilities also increased to '11,81,750 crore in FY 2023 from '10,24,804 crore in FY 2022.

Capital Adequacy Ratio (CAR)

(Ratios in %)

Particulars	FY 2022	FY 2023
Capital Adequacy Ratio Basel III	15.68	16.24
CET I	11.42	12.24
Tier I	13.18	13.99
Tier II	2.50	2.25

The Capital Adequacy Ratio (CAR) of the bank increased to 16.24% as of March 31, 2023 from 15.68% as of March 31, 2022. CET-1 ratio increased to 12.24% in FY 2023 from 11.42% in FY 2022. The consolidated group capital adequacy ratio increased to 16.73% as of March 31,2023 as compared with 16.19% as of March 31,2022.

During FY 2023, the Bank issued Additional Tier I (AT-I) capital bonds of '2,474 crore.

Net worth

The Bank's net worth as of March 31, 2023 was '76,591.07 crore comprising of paid-up equity capital of '1,035.53 crore and reserves of '97,187.36 crore (excluding revaluation reserves, foreign currency translation reserves and other intangible assets). The book value of the share (Face Value '2) was '148.80 as of March 31,2023.

Provisions towards Retirement and other benefits

During FY 2023, the Bank made provision towards contribution to gratuity ('125.75 crore), pension funds ('2911.62 crore), leave encashment, additional retirement

benefits and other benefits ('78.51 crore). Total provisions under these categories amounted to '3115.88 crore during FY 2023.

Dividend Distribution

Board of Directors of the bank has recommended a dividend of '5.50 per share for the financial year ended March 31,2023. The total outgo in the form of dividend will be '2,844.25 crore. The payment of dividend is subject to requisite approvals.

Management Discussion and Analysis

Global Economy

The world economy witnessed a major shock in the first quarter of the calendar year with Russia invading Ukraine. This had an immediate response of a ban being imposed by the western powers on dealings with Russia that led to supply chain disruptions. This in turn affected the overall pace of growth across various geographies. Global economic growth moderated to 3.4% in 2022 from 6.3% in 2021 according to the IMF, due to several factors such as war, disruptions in trade, zero covid policy of China, aggressive action by central banks to quell inflation etc.

The situation was further exacerbated by cost of living crisis in many countries amidst high inflation, tightening financial conditions due to higher rates and prolonged impact of the Russia-Ukraine war and Covid-19 pandemic. Growth in Advanced Economies (AEs) halved to 2.7% in 2022 from 5.4% in 2021. Within this group, growth in Euro Area moderated to 3.5% in 2022 compared with 5.4% in 2021. This was led by France and Italy. Growth in US also slowed down to 2.1% from 5.9% in 2021.

Growth in Emerging and Developing Economies (EMDEs) held up better, expanding by 4% in 2022, after increasing by 6.9% in 2021. A severe slowdown in growth in China from 8.5% in 2021 to 3% in 2022 accounted for most of the moderation in growth in this region. China had gradually withdrawn from their strict stance on zero-covid by the end of the year and normalized economic activity, albeit in a phased manner.

On the prices front, global inflation remained elevated at 8.7% in 2022 compared with 4.7% in 2021. Higher global commodity prices due to the Russia-Ukraine war as well as strained global supply chains were responsible for the steep increase in prices. Inflation in several AEs as well as EMDEs remained well over the central banks' targets. In fact, inflation in several AEs such as UK surged to double digits during the year.

To bring inflation under control, global central banks world over raised policy rates aggressively. Amongst major AE central banks, US Fed has raised policy rates by 500bps, followed by Bank of England (BoE) and European Central Bank (ECB) with rate hikes of 440bps and 375bps respectively, in the same period. Amongst Emerging Markets (EMs), central banks in Brazil and Indonesia have also raised policy rates aggressively.

The aggressive stance of the Fed also led to the dollar strengthening in the global market with the parity level with euro being breached for a short while. This did cause virtually all currencies to depreciate against the dollar. The rupee held out relatively well falling the median level of depreciation across major currencies.

Global trade volumes dipped in 2022 amidst a decline in global growth and demand. Volume of goods and services trade moderated to 5.1% from 10.6% in 2021. This was led by a sharp deceleration in volume of goods export to 2.6% compared with 10.7% in 2021. Volume of goods imports was also lower at 4% in 2022 compared with 11.5% in 2021.

Uncertainties have once again risen over the global growth outlook. Financial conditions have tightened considerably as global central banks embarked on an accelerated monetary policy tightening path, amidst stubbornly high inflation. This coupled with the recent stress seen in the banking system due to the failure of a few US regional banks as well as strain in Credit Suisse, a systemic important bank, impinge on the growth outlook. Concomitantly, inflation though declining has remained stubbornly high led by core, and with continued strength in the labour market can prove to be even more long lasting. This can lead to a much more aggressive stance by global central banks which will further tip the scale against a possible growth recovery.

Based on this, IMF projects global GDP growth at 2.8% in 2023 with risks heavily tilted to the downside. In fact, the report notes that the possibility of a "hard landing" have increased. Growth in AEs is expected to moderate further to just 1.3%. This will be led by a sharp slowdown in growth in Euro Area to just 0.8%. Significantly, growth in Germany, the region's biggest economy is expected to contract by 0.1%. In UK, output growth is expected to decline by 0.3%. Growth in US is expected at 1.6%.

On the other hand, growth in EMDEs is expected at 3.9%, slowing only marginally. This will be supported by a strong rebound in growth in China, which is expected to grow by 5.2%. This will offset the loss in momentum in activity in other countries such as India, Brazil and South Africa. India's growth is projected at 5.9% for the year against RBI's forecast of 6.5%.

While inflation is expected to moderate, the pace has been much slower than anticipated. Global inflation is expected to decelerate to 7% in 2022. While global commodity prices have corrected, led by food and fuel, core inflation in several economies has continued to remain high and is yet to peak in several countries across the globe. Hence, this could necessitate more rate hikes by global central banks which will further push growth lower.

Indian Economy

India's economy registered a strong growth of 7.2% in FY23, much higher than anticipated signal resilience in the economy. Agriculture and allied activities registered a growth of 4% compared with 3.5% in FY22. Even Financial, real estate and professional services recorded a strong growth of 7.1% in FY22 against 4.7% in the previous year. Despite global headwinds at play, Indian economy is poised to do

much better than the global counterparts on the back of strong domestic fundamentals.

Industrial activity, came down from a high base of 11.4% in Apr-Mar'22, to 5.1% in Apr-Mar'23. This was led by slowdown in manufacturing and mining activity, while electricity production continued to inch up. Manufacturing activity moderated by 4.5% in FY'23 period versus 11.8% growth noted in during FY'22. Mining output eased to 5.8% during Apr-Mar'23 from 12.2% in Apr-Mar'22. Electricity production growth on the other hand remained robust and rose by 8.9% in FY'23 compared with 7.9% in the previous year. Separately, services sector performed very well, as was also indicated by services PMI (averaged 57.3 in FY23 versus 52.3 in FY22). GST collections, port cargo volume, rail freight, property sales and domestic passenger growth all did well in FY23.

The steady growth in FY23 was also positive for the government as the fiscal deficit target (6.4%) has been achieved as per the provisional estimates. The same for FY24 has been targeted at 5.9%. FY23 target was achieved owing to buoyancy in overall revenue receipts which were higher under the provisional estimates at '23.8 lakh crore in FY23 against a revised estimates (RE) of '23.5 lakh crore. Collections under net tax revenue also beat RE and rose to '21 lakh crore from '20.9 lakh crore. Thus, higher outlays on certain essentials like fertilizer subsidies ('2.51 lakh crore as per FY23PE versus '2.25 lakh crore as per FY23RE), capex, was achieved without any untoward pressure on the government finances.

Despite moderation in economic momentum in FY23, prices continued to remain elevated. CPI inflation averaged 6.7% in FY23, up from 5.5% in FY23, thus also crossing RBI's upper tolerance band of 6%. Q1FY23 was when inflation was at its peak (7.3%), following the breakout of war between Russia and Ukraine in Feb'22. Since then, as global economic outlook was dampened (global GDP at 3.2% in CY22 versus 6% in CY21), domestic inflation began coming down (Q2: 7%; Q3: 6.1%; Q4: 6.2%). Core inflation too remains sticky (6.1% in FY23 versus 6% in FY22). Following the dip in core inflation in Q2FY23 (5.9% versus 6.3% in Q1), it has again inched up and steadied at 6% in Q3 and Q4. In the current fiscal year (FY24), RBI expects headline CPI to ease to 5.2%. However, significant upside risks to the projection remain, such as adverse climate conditions (heat wave, actual performance of monsoon), increased fodder cost and imported inflationary pressures.

The external situation in FY23 was strained as trade deficit ballooned to US$ 267bn from US$ 191bn in FY22. Coming off a high base and due to weakening global demand, our export growth slowed to 7.2% in the last fiscal year, following 54% growth witnessed in FY22. On the other hand, relative stability in domestic demand and volatile commodity prices led to less sharper dip in imports (19% in FY23 versus 64% in FY22). Forex reserves, which is the summary indicator of all developments on this front fell by US$ 39.2bn to reach US$ 578.4bn as of March 31,2023. The rupee, on a point to point basis, ended at '82.18/$ on 31st March 2023 compared with '75.79/$ a year back, thus showing a depreciation of 7.8%. This was in line with depreciation witnessed across most currencies due to strengthening US dollar.

On the monetary policy front, RBI has increased repo rate by 250 bps in FY23, in line with global central banks. In its first policy for FY24 RBI decided to pause, but has indicated that it stands ready to take action if inflation does not fall within the targeted band.

Going forward, RBI expects FY24 growth to settle at 6.5%. As most developed economies are projected to enter recession/ face significant slowdown in economic activity in CY23, and uncertainty prevails in global financial systems, risks to our domestic growth persists. On the positive side, prediction of normal monsoon, enhanced government budget for capex spending, and ebbing inflation, will provide support to growth in FY24. Our expectation is that GDP growth will be in the region of 6-6.5% for FY24..

Developments in Indian Banking

Credit growth of Scheduled Commercial Banks (SCBs) rose at a double digit of 15% as of March 2023 from 8.6% as of March 2022. The faster pace of credit off take is attributable to pent up demand factor as normalisation of economic activity gained pace. Sector wise, pick up in credit was driven by services where credit on an average rose by 19.8% in FY23 compared with 8.7% in FY22. Within services, lending to NBFCs improved significantly to 30.2% in FY23 versus 7.8% in FY22. Credit to the personal loan segment also grew at a healthy pace of 20.6% from 12.6%. Within this segment, education, vehicle and housing loan grew at a robust pace. Credit to industry on the other hand, moderated and grew by 5.7% in FY23 from to 7.5% in FY22. Apart from large industries (3% from 2%), credit to both medium (19.6% from 54.4%) and micro and small enterprise (12.3% from 23%) showed moderation.

A plausible explanation could be that this sector is still reeling under liquidity pressure despite government's support in terms of ECLGS scheme and RBI's support in terms of extension of moratorium. Notably, weighted average lending rates of SCBs on fresh rupee loans rose to 9.32% as of March 2023 compared to 7.63% as of March 2022. Clearly higher borrowing cost did not put a strain in the rising credit cycle of the economy.

Growth in deposits also picked up to 9.6% as of March 2023 compared to 8.9% as of March 2022. This is to be noted that, the pace of deposit accretion in FY23 has been much slower compared to the pace of accretion in credit. Within deposits, time deposits grew at a steady pace of 10.2% as of March 2023 from 8.6% as of March 2022. In a rising interest rate cycle, where weighted average domestic term deposit rates of SCBs rose by 113bps (5.03% as of March 2022 to 6.16% as of March 2023), household's preferred choice has been bank deposits for better returns due to risk aversion factor.

During the year, the repo rate increased by 250bps, from 4% in April 2022, it rose to 6.5% in March 2023. Apart from the 250bps increase in repo rate, RBI has also introduced Standing Deposit Facility (SDF) at a rate 40 bps higher than the fixed rate reverse repo. Thus, the effective rate hike since April has been 290 bps. The overnight MCLR rose sharply to 7.5-8.5% as of 31 March 2023 from 6.45-7.00% in the same

period of previous year and in consonance with rising policy rate. The term deposit rate for deposit of above 1 year rose to 6.00-7.25% compared to 5.00-5.60%.

The 10-year Gsec rate increased by around 49bps to 7.32% from 6.83% during this period. Another notable thing worth mentioning is, FY23 witnessed considerable flattening of the yield curve. The difference between long end papers (29Years maturity) and short term papers (6months paper) fell sharply to 31bps as on 31 March 2023 compared to 306bps as on 31 March 2022. This is because of sharp pace of increase in short term papers with increase in policy rate, whereas long end yields remained broadly stable. Going forward, some degree of steepening in India's yield curve may be observed as higher proportion of borrowing in H1FY24 is concentrated towards longer tenor papers.

FY23 witnessed quite a bit of volatility on liquidity front. Liquidity went into deficit with pressure from TLTRO redemption and gradual scale back of liquidity measures undertaken during the pandemic period. However, RBI's fine tuning operations through conduct of Variable rate repo and reverse repo supported liquidity to an extent which did not put stain on productive lending to sectors. On an average, liquidity surplus fell down to '1.6 lakh crore in FY23 compared to '6.5 lakh crore in FY22.

On the banking front, RBI's Dec'2022 Financial Stability Report highlighted that Indian banks are well capitalized and are in a well-equipped position to absorb any macroeconomic shocks. Under baseline scenario, GNPA ratio of SCBs is likely to improve to 4.9% in Sep'23 from 5% in Sep'22. Even the slippage ratio which has been on the uptrend since Dec'21 has cooled off in Q2FY23. PSBs have registered the most improvement during this period.

EASE

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.

EASE4.0

With innovative technologies & tools such as AI, Automation, data analytics and technical support services, critical backend 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 consistently secured 1st position in all quarters of FY22 among all the Public Sector Banks.

The Bank topped in the themes ‘Smart Lending for Aspiring India' and ‘New Age 24*7 Banking' while consistently improving the performance in the themes ‘Governance and Outcome-centric HR', ‘Institutionalizing Prudent Banking' and ‘Tech-enabled ease of Banking‘.

EASE 5.0

The EASE 5.0 agenda mainly focusses on Enhancing Digital Customer Experience, Data-driven Integrated and Inclusive Banking with emphasis on supporting small businesses and agriculture.

Further, EASE 5.0 continues to drive progress in ongoing agendas such as co-lending partnerships, mobile banking enhancements, payments in semi-urban and rural areas, cloud adoption, digital marketing improvement through Search Engine Optimization and deepening financial inclusion.

Under EASE 5.0, Bank has -

• Launched Digital Lending Journey for Pension Loan, MSME Term Loan Renewal

• Enhanced MSME & Agri functionalities in Mobile Banking and Internet Banking

• Improved use of Analytics to enable customer retention; increase product penetration

• Further enhanced the services provided at call centres

• Increased thrust on promotion of gender diversity

• Introduced advanced stress testing model for retail and MSME.

• Introduced digital and analytics driven Collection; set up operating hubs for driving collection function

• Provides customised services, nudges, reminders based on analytics driven mining of transaction history and customer data in BOB World

• Provides open APIs with Introduction of Repository for

use cases and documentation, Sandbox Testing platform - It lets you interact with APIs, Mocked API response is in Bank's own Developer Portal

• Increased focus on Digital Adoption in semi-urban and Rural Areas

All through the past five years, EASE reforms agenda has contributed immensely towards the PSBs' journey in achieving efficiency and ease of operations in almost all areas of operations, helping the Banks in providing an enhanced experience to the customers.

EASE Next (Pillar - II):

Bank-specific 3-year roadmap program: Creation of bank- specific three-year strategic roadmaps, conceptualised to each bank's starting position and business priorities, to enable reforms above and beyond the common reform agenda.

Strategic 3-Year Roadmap: As a part of EASENext's second pillar, 3-year strategic roadmap is conceptualised. The program has been designed with a view to encourage banks to adopt transformational initiatives that go beyond the common reforms agenda.

For this purpose, 45 wide-ranging financial and non-financial metrics have been identified. Each bank will identify shortterm and long-term targets for each metric, and identify initiatives to drive improvement in these metrics.

Project BOB-NOWW:

 

The journey to shape the future Bank of Baroda continues

In the year 2020, Bank of Baroda embarked on a transformation journey - BOB-NOWW to build an industry-first operating model through new ways of working and 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:

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 network this year. As of March 2023, the total number of touch points grew to over 51,000, jumping close to 24 percent YOY.

A dedicated BC 2.0 programme have been introduced which not only focuses on increasing the BC network at potential areas but also on increasing BC earnings by adding Asset Products such as housing, personal, auto, agriculture loan leads in their service portfolio. This programme continuously monitor their performance through publishing of leaderboards and dashboards.

Collection: Collection saw a revamped organization structure with more focus on product based vertical structure. Collections organization has been set up with receivables managers across all levels from Branch to central level. It leverages BC network also to drive agri collections. An integrated digital collection platform have been introduced for allocation, collections, tracking and performance management. Pilots with two Fintech vendors have also been launched for digital interventions. Collaborations have been made for successful execution. Implementation tracking is being done through dashboards and initiative owners have been identified.

DST channel for Agri Tractor Loan: BOBNOWW introduced DST model in Tractor loan product to give it the necessary boost. Tractor loan campaigns have been launched to expand the benefits of DST model across 10 identified zones. These campaigns have given encouraging results simultaneously establishing well-structured existing DST model across 10 zones.

DST channel for Home Loan: Bank has engaged Baroda Global Shared Services Limited (BGSS) for setting up of Direct Sales Team (DST) channel to generate and fulfil business leads related to Retail Assets. DST channel is being set up with an objective to help Bank in acquiring new business in an accelerated manner.

NRI helpdesk: BOBNOWW initiated establishment of centralized NRI help desk at GIFT City for Account opening, e mail management and toll free contact center in order to provide superior customer service to its NRI clients.

Digital led experience: The Bank moved a step closer to its goal of digitizing critical banking services and processes, starting with the launch of 49 self-assisted customer journeys that enables faster and straight-through processing of transactions.48 bob World service outlets has been opened at different locations to serve the customer digitally. E- Mandate service have also been launched to facilitate the customers for online registration of mandate. Through the paperless office initiative, approval process have been digitized, bringing transparency and accountability to the operations.

Under branch reformatting, we have enabled the branches with requisite infrastructure to service the customers through digital mode and provided other enablers for enhanced customer experience & service.

Adopting digital channels allows for improved productivity and efficiency among the Bank staff and helps customers solve queries swiftly. To provide best in class service in the quickest possible manner, we embarked on the journey of on-boarding customers to our best in class Banking App bob World Over a period of -2- Years, i.e. FY 2022 and 2023 we have added 2 Crs customers on to our bob World platform, a feat achieved through collective team work. We cumulatively, now we have 3 crore customers on boarded on bob World platform wherein their continuous engagement is the key to further growth.

Operating Performance & Key Ratios

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

(Rs. in crore)

Particulars	FY 2022	FY 2023
Interest Earned	69880.78	89588.54
Interest Expended	37259.44	48232.53
Net Interest Income (NII)	32621.34	41356.01
Other Income	11483.95	10025.57
Of which- Trading Gains	2728.76	1062.50
Operating Income (NII + Other Income)	44105.29	51381.58
Operating Expenses	21716.44	24518.31
Employee Expenses	11978.84	13352.66
Other Operating Expenses	9737.60	11165.65
Operating Profit	22388.85	26863.54
Provisions (Other than Tax)	13002.41	7136.90
of which-Provisions for NPAs and Bad debts written off	14640.12	4,350.52
Provision for Standard Advances	(2672.26)	527.50
Provision for Depreciation on Investment	558.97	1704.03
Other Provisions	475.58	554.85
Profit Before Tax	9386.44	19726.64

Particulars	FY 2022	FY 2023
Provision for Tax	2114.16	5617.02
Net Profit	7272.28	14109.62

Net Interest Income of the Bank increased to '41,355 crore in FY 2023 from '32,622 crore in FY 2022, registered a growth of 26.8% on a YoY basis. This was mainly due to increase in the Interest Income to reach to '89,589 crore in FY 2023 by registering a growth of 28.2% on a YoY basis. The Interest Expense stood at '48,233 crore in FY 2023 which was at '37,259 crore in FY 2022.

Other Income of the Bank stood at '10,026 crore in FY 2023 which was at '11,484 crore in FY 2022. Operating expenses of the Bank stood at '24,518 crore in FY 2023 as compared with '21,716 crore in FY 2022. Operating Income of the Bank increased to '51,382 crore in FY 2023 from '44,106 crore in FY 2022, registered a growth of 16.5% on a YoY basis.

Total provisions (other than tax) and contingencies declined to '7137 crore during FY 2023 from '13,002 crore during FY 2022. Provisions for Non- Performing Assets (NPA) declined to '4351 crore crore in FY 2023 from Rs 14,640 crore in FY 2022.

The Bank reported a net profit of '14,110 crore in FY 2023 which was increased nearly double of previous year's Net Profit of '7,272 crore. The Operating profit of the Bank grew by 20% to reach to '26,864 crore in FY 2023 as compared with '22,389 crore in FY 2022.

Key Ratios

Key Ratios	FY 2022	FY 2023
Cost of Deposits - Global (%)	3.52	3.89
Cost of Deposits - Domestic (%)	3.85	4.09
Cost of Deposits - International (%)	0.48	2.37
Yield on Advances - Global (%)	6.79	7.54
Yield on Advances (Domestic) (%)	7.61	8.25
Yield on Advances (International) (%)	2.18	4.21
Net Interest Margin - Global (%)	3.03	3.31
Net Interest Margin - Domestic (%)	3.09	3.42
Net Interest Margin - International (%)	1.47	1.94
Cost-Income Ratio (%)	49.24	47.72
Return on Average Assets (ROAA) (%)	0.60	1.03
Return on Equity (%)	11.86	18.34

Cost of deposit (global) stood at 3.89% and Yield on Advances (global) improved to 7.54% in FY 2023. Net Interest Margin (NIM) global and NIM domestic improved to 3.31% and 3.42% in FY 2023 as against 3.03% and 3.09%

respectively in FY 2022. Cost to income ratio decreased to 47.72% in FY 2023 from 49.24% in FY 2022. Return on Assets for FY 2023 improved by 43 bps to 1.03% in FY 2023 from 0.60% in FY 2022, reflects exceptional performance in profitability. Return on Equity increased by 648 bps to 18.34% in FY2023.

Resource Mobilisation

(Rs. in crore)

SL No	Particulars	FY 2022	FY 2023
I	Total Deposits	10,45,938.56	12,03,687.79
II	International Deposits	1,18,927.99	1,56,312.58
III	Total CASA	4,33,605.23	4,75,096.83
IV	Total Current Account Deposits	88,861.21	1,04,000.51
V	Total Savings Bank Deposits	3,44,744.02	3,71,096.32
VI	Global CASA %	41.46	39.47
VII	Domestic Deposits	9,27,010.57	10,47,375.21
VIII	Domestic CASA Deposits	4,10,122.92	4,42,510.50
IX	Dom. Current Account Deposits	68,779.64	75,110.67
X	Dom. Savings Bank Deposits	3,41,343.27	3,67,399.83
XI	Domestic CASA to Domestic Deposits (%)	44.24	42.25

Total Deposit of the Bank increased to '12,03,688 crore during FY 2023 from '10,45,939 crore during FY 2022, there by recorded a growth of 15.1% during the period. The International Deposit of the Bank also increased to '1,56,313 crore as on 31.03.2023 from to '1,18,928 crore as on 31.03.2022, recorded a robust growth of 31.4% on a YoY basis.

The global CASA of the bank increased to '4,75,097 crore as on 31st March 2023 from the level of '4,33,605 crore as on 31st March 2022, registered a growth of 9.8% on a YoY basis. The global current deposit of the bank increased to '1,04,001 crore as on 31st March 2023 from '88,861 crore as on 31st March 2022, marked a growth of 17% on a YoY basis. The global Savings deposit of the bank increased to '3,71,096 crore as on 31st March 2023 from '3,44,744 crore as on 31st March 2022, recorded a growth of 7.6% during the period. The global CASA % to global deposit stood at 39.47% during the period.

Domestic Deposits and Domestic CASA

Domestic Deposit of the Bank increased to '10,47,375 crore as on 31.03.2023 from '9,27,011 crore as on 31.03.2022, registering a growth of 13% during the period.

Bank's domestic CASA deposits increased by 7.90% and rose to '4,42,511 crore as on March 31, 2023. Bank has achieved Domestic CASA ratio to the domestic deposit of 42.25% during FY 2023. Current Account deposits registered growth of 9.20% and reached to '75,111 crore, while Savings Bank deposits reached to '3,67,400 crore with an increase of 7.63% as on 31.03.2023.

Low cost deposit mobilization initiatives

During FY 2023, Bank opened 1.09 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. Baroda Professional Savings account, RERA Current accounts, Current Account for Government Bodies. Extensive focus was given on Government business relationships and acquiring new accounts particularly SNA accounts of Centrally sponsored schemes across States. Special Emphasis was given for Increasing penetration of Key CASA enablers like POS, IPG& BCMS and activation of dormant accounts.

On Digital front, Bank has increased penetration of client acquisition through digital channels like VCIP, TAB & Digital ONLY accounts and during the FY 2023, 1,22,020 VCIP

Savings Accounts, 87,290 B3- Digital only A/c were opened. Also out of 2,71,800 Current Accounts opened during the year, 2,30,046 Current Accounts (89.88% of eligible Current Accounts opened) and out of 72,27,954 Non FI Savings accounts opened during the year, 62,50,104 Non FI Savings Accounts ( 97.90% of eligible Non FI Savings accounts opened) were opened through TAB during FY 2023.

Bank's integration with the Ministry of Corporate Affairs Portal for opening Current Accounts of newly formed Companies has yielded opening of 4,641 current accounts during the year.

Bank is having 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.

Bank is leading from front in extending Door Step Banking Services through the PSB Alliance Door Step Banking Services. Bank has successfully completed 1,42,955 Door Step Banking service requests during FY 2023.

Baroda Cash Management Services

The Bank's cash management business, Baroda DigiNext, providing a wide range of Omni-channel digital solutions for Corporate and Government Customers for management of their cash flows and liquidity has witnessed rapid growth in the last 3 years. 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 in addition to solutions used by Corporates. It provides valuable information on real-time basis of all receipts - electronic, cheques and cash deposits at all its branches.

Baroda DigiNext Cash Management continues to rapidly expand its footprint acquiring more than 1,700+ new large corporate and government relationships in FY 2023. Over 6,600 large customers of the bank are utilizing Bank's cash management services for executing over 6 crore transactions during the year.

Credit Expansion

The Global Gross advance of the bank increased to '9,69,548 crore during FY 2023 from '8,18,120 crore during FY 2022, thereby registering a growth of 18.5% on YoY basis. The gross domestic advance increased to '7,95,560 crore as on 31st March 2023 from '6,84,153 crore as on 31st March 2022, there by marked a growth of 16.3% during the period. The international gross advance of the bank increased to '1,73,988 crore during FY 2023, from '1,33,968 crore during FY 2022, there by registered a robust growth of 29.9% on a YoY basis.

(Rs. in crore)

Credit Portfolio of the Bank
Segment	FY 2022	FY 2023	YoY (%)
Retail*	1,40,399	1,78,037	26.8
Agriculture	1,09,796	1,24,247	13.2
MSME*	96,863	1,08,196	11.7
Corporate	3,00,693	3,40,408	13.2
Others	36,402	44,672	22.7
Gross Domestic Advances	6,84,153	7,95,560	16.3
International Gross Advances	1,33,968	1,73,988	29.9
Global Gross Advances	8,18,120	9,69,548	18.5

*Ex-pool purchase (Organic)

The growth in Advance portfolio was supported by Retail Advance (organic) which increased to '1,78,037 crore grew by 26.8%, Agriculture advance which increased to '1,24,247 crore grew by 13.2%, MSME (organic) segment which rose to '108,196 crore by 11.7%, on a YoY basis during FY 2023. The retail advance including pool purchase stood at '187,688 crore and MSME including pool purchase stood at '1,14,918 crore as on 31.03.2023.

The growth in Retail advance (organic) portfolio was led by key portfolios like Personal Loan Auto Loan (organic) which grew by 24.4% to reach to '31,261 crore, Home Loan (organic) which grew by 19.5% to reach to '98,014 crore, Personal Loan which grew by 101.5% to reach to '19,645 crore, Mortgage Loan (organic) which grew by 18% to reach to '16,801 crore and Education Loan which grew by 21.8% to reach to '8,196 crore on a YoY basis.

Corporate Loan of the Bank increased to '3,40,408 crore in FY 2023 from '3,00,693 crore in FY 2022, grew by 13.2% on YoY basis.

The bank was highly benefited by its continuous focus on digital banking backed by latest technology. The Bank has launched many new initiatives on its ditgital platform like Pre-approved Auto Loan, Digital Education Loan, Preapproved Home Loan Top-up, Digital Pensioner Loan etc. The digital loan products was also extended to MSME and Agri segments wherein Bank has got a very good responds. The Bank has also well focused on key segments through its traditional banking activities by launching various campaigns at branch, regional and zonal level to augment maximum quality loan business. The continuous and equal focus on its branch banking and digital banking helped the bank to expand its loan portfolio in a healthy manner during FY 2023.

Corporate Credit

Corporate credit in the Bank is serviced through 30 specialized Corporate Financial Services (CFS) & Mid Corporate branches (MCB) which manage approximately 90% of the total standard corporate credit portfolio of the Bank. The corporate credit portfolio of the Bank increased to '3,40,408 crore as on March 31,2023.

With revamp in approach towards corporate credit delivery, the risk profile of the portfolio further improved during FY 2023 as observed in the rating distribution of domestic credit portfolio as below:

Credit Rating Distribution*	FY 2022	FY 2023
A and above	78%	86%
BBB	10%	7%
Below BBB	6%	3%
Unrated	5%	4%

 

*External Rating Distribution of Domestic Advances above '50 crore

Total portfolio comprising of A and above in FY 2023 was 86% as against 78% in the previous year.

Corporate Banking - Revamped Structure

During the year bank has revamped its Corporate Banking Structure with a strategy to focus more on Mid Corporate Advances. Bank has opened -4- Mid Corporate Clusters located at strategic locations i.e. New Delhi (North), Chennai (South), Mumbai (West) and Kolkata (East). During the year bank has opened -15- New Mid Corporate branches across the country for quick processing of corporate proposals and tap the opportunities available in the Mid Corporate Segment.

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, CMS facility and other retail products.

• During FY 2023-24 bank is planning to open additional -6- New Mid Corporate Branches across the country.

MSME Credit

The MSME portfolio of the Bank increased to '1,14,918 crore (excluding TWO)in FY 2023 from '1,00,131 crore in FY 2022, registered a growth of 14.8% on a YoY basis. The MSME (organic) business reached to '1,08,196 crore in FY 2023 from '96,863 crore in FY 2022, thereby registered a growth of 11.7% on a YoY basis. During the year, the Bank has taken many business initiatives to augment maximum MSME business into its fold which helped the Bank to achieve a healthy business growth in MSME segment.

Bank has achieved the Target (106%) under PMMY Scheme for the FY 2023.

As on Mar'23 - Bank has sanctioned PMSvanidhi loan to 4,81,771 applicants and disbursed facilities to 4,45,511 customers.

To reach to the above target following initiatives have been taken by the department:

• Fast-track lane for NTB customers & simplified AIP/ Modifications for ETB and NTB customers - focus for reduction of TAT.

• "MSME Mahotsav" campaign, was launched on 15.06.2022 with aggressive pricing to capture quality MSME NTB business. The Campaign was in force upto Mar'23. Under the campaign, we have disbursed '10,162 cr. to 17,677 customers.

• "The Last Mile" Campaign was launched for Q4- FY'23 with a target to canvass quality MSME accounts preferably with term loan facilities.

Performance under the campaign:

(Rs. in crore)

Targets	Sanction Amount	Disbursement Amount
9,935	13,921	11,848

• Scheme specific campaign "Raftaar" was launched for CV and CME and recorded 225% growth in FY'23.

• New Product: - "Scheme for Financing Micro units engaged in Exports" has been floated.

• Modification in Baroda Property Pride (Overdraft) and Launch of a new scheme LAP Premium (Term Loan)

• The new Baroda Healthcare scheme with focus on providing collateral-free finance to medical equipment, to ‘micro to mid-level' healthcare professionals/Doctors/ Diagnostic centers/ Hospitals/ Clinics located in Tier 1,2 & 3 cities, for purchase of healthcare equipment based on cash flow assessment has been launched.

• Bank entered into MoU arrangement with Hyundai Construction Equipment India Pvt. Ltd, for obtaining business leads in construction & mining equipment, for 2 years

• MOU with Aerem Finance Pvt. Ltd: Our bank has come with a collateral free scheme to finance Solar Rooftop Projects for captive use by MSMEs.

• MOU with LiuGong India Pvt. Ltd. Equipment's: Construction Equipment's financing under our bank CV- CME scheme.

• Co-Lending :- Financing under Co-lending model with Paisa Lo Digital Limited which is actively involved in extending loans to SMEs with focus on small ticket size to individuals (mainly women)

Launch of Unsecured Loans to MSMEs under co-lending arrangement: We had launched the product under colending arrangement with UGRO Capital Limited on Digital Co-Lending platform on 31.03.2023.

Retail Credit

The Retail Asset of the Bank increased to '1,87,688 crore (excluding TWO)in FY 2023 from '1,50,253 crore in FY 2022, registeed a growth of 25% on a YoY basis. The organic Retail Loans increased to '1,78,037 crore in FY 2023 from '1,40,399 crore in FY 2022, an increase of 26.8% over the previous year. Retail Assets constitutes 23.5% (excluding LABOD and Staff Loan) of Domestic Advances as on 31st March 2023.

Retail portfolio of the Bank

(Rs. in crore)

Retail Portfolio
Portfolio	FY 2022	FY 2023	YoY (%)
Retail Loans*	1,40,399	1,78,037	26.8
Home Loans*	82,009	98,014	19.5
Auto Loans*	25,130	31,261	24.4
Mortgages Loans*	14,242	16,801	18
Education Loans	6,731	8,196	21.8
Personal Loans	9,748	19,645	101.5
Gold Loans	1,371	2,420	76.5
Others	1,168	1,700	45.5

*Ex-pool purchase (Organic)

The key highlights of retail business in FY 2023 include:

• Our Bank got award for "Best Bank in Home Loan and Car Loan" from NAVBHARAT Group.

• Our Bank got award for "Best Bank in Home Loan" from Financial Express.

• Our Bank got award for "BEST PERFORMING PRIME LENDING INSTITUTION" under PMAY (U) CLSS from HUDCO.

• Bank's Mortgage-based loan book (Home, Mortgage and Rent Receivables) stood at '1, 25,737 crore as on 31st March 2023 (excluding TWO)

• Within Retail segment (Excluding Two) Organic Auto, Education and Home loans posted an increase of 24.96%, 24.55% and 19.52% respectively.

• Personal Loans Book of Bank increased by 102%.

• Bank opened 2 more new Specialised Mortgage Stores (SMS), with that SMSs increased to 137 as on 31st March 2023. These stores are located all across the country to deliver specialized and faster mortgage-based retail credit delivery.

• Introduced Home Loan to Corporates and special offerings to Govt. Employees.

• 1357 NewProjectApproved.

• DST channel strengthened, number of DSTs increased to 2101 as on 31.03.2023 from 660 as on 31.03.2022.

• Digital End-to-End Auto Loan journey for ETB / NTB Pre-approved & non-preapproved journey launched. 1562 digitally end-to-end Auto Loans sanctioned and disbursed amount of '131.53 Crores.

• Presence on Maruti & Hyundai online portal.

• Google Top 10 search ranking achieved - Education Loan #1st position with FAQ scheme snippet.

• Digital End-to-End Education Loan launched for study in Premier Institutions.

• In Education Loan, Bank disbursed amount of '2799.38 Crores in the financial year 2022-23 as against disbursement target of '2030 Crores given by DFS.

• Digital End-to-End non pre-approved Personal Loan for ETB / NTB launched.

• New API - 2.0 integrated in LLPS for account opening in FINCALE which will reduce efforts & improve account opening data quality as well as prevent fraud / MIS reporting.

• Mobile App for post sanction inspection in Retail Loan launched.

• Baroda Loan against Future Rent Receivable (FRR), Home Loan, Mortgage Loan, Education Loan schemes revamped.

• BCs been engaged for Home Loan, Auto Loan & Other Retail Loans.

• Implemented retention & cross sell process.

• Automated Pool Portfolio for NPA classification & provisioning in line with RBI directions.

• Introduced digital End-to-End loan to Pensioners, Top- up Loan to Home Loan customers.

• Introduced Mobile Apps for file login by partners.

Rural and Agricultural Lending

Agriculture, with its allied sectors, is unquestionably the largest livelihood provider in India, more so in the vast rural areas and it also contributes significantly to the Gross Domestic Product (GDP).

Bank has a network of 8,200 domestic branches, of which 4,942 rural and semi urban branches are leveraged fully for priority sector and agriculture lending. The Bank's agriculture advances increased to '1, 24,247 crore as on 31st March 2023 forming about 16% of the gross domestic credit.

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 the Union Territory of Dadra and Nagar Haveli and Daman and Diu. Bank also shoulders the Lead Bank responsibility in 69 districts across the country.

Bank continues to be one of the leaders 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 based 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.

In the recently concluded ‘BEST' campaign under AIF launched by Ministry of Agriculture and Farmers Welfare, our Bank secured the 1st position under "Achievers of Campaign Sanction Target" by achieving 113.50% of target among all Commercial Banks. Bank has also qualified in the remaining two categories i.e. "Amount sanctioned under AIF" and No. of project sanctioned" among TOP 5 Banks from the Banking Industry.

Bank continues to focus on its flagship products like KCC, Agri Gold Loans, Farm mechanisation (Tractor loans), Horticulture loans, Financing to Self Help Groups (SHGs), Financing to Farmer Producer Organization / Farmer producer company (FPO/FPC), Hi-tech Agriculture and Food and agro-processing. During the year, the Bank has issued 3.17 lakh new Kisan Credit Card (KCC) of which 1.18 lakh are Animal Husbandry and Dairy (AHD) KCC issued to farmers engaged in animal husbandry and fisheries activities. As part of its microfinance initiatives, Bank has credit linked 84,573 SHGs by granting loans amounting to '2,899 crore during FY 2023.

Bank is pursuing tie ups with various 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 was introduced last year. In Tractor loans, rate of interest has been linked with LTV of Tractor for the convenience of farmers. Our Bank is a partner in the development of the digital KCC journey, on the Jan Samarth portal, initiated by the Government of India. It is expected to go live in a few months. We have already introduced a digital journey for Gold Loans.

Bank had introduced Centre for Agriculture marketing and Processing (CAMP), a dedicated centralized centres for processing of agriculture loans with a special focus on nontraditional and high value Agri advances. During FY 2022-23, CAMP has sanctioned loans to 30,473 farmers, amounting to '2,898 crore.

Bank had also organized its unique annual customer outreach programme "Baroda Kisan Phakwada" from 15.11.2022 to 30.11.2022. During the fortnight long programme, a total of -20152- outreach programmes like Farmer Meetings/ Choupals/ Kisan Melas/ Health Camps (Soil / Animal / Farmer) etc were organized by the Branches/ Regions & Zones, connected with -3,87,179- farmers.

Priority Sector Lending

Priority sector advances of the bank increased to '2, 87,589 crore during FY 2023 from '2,60,818 crore during FY 2022, growing @ 10.26 %. Bank achieved the mandatory targets under all the categories of Priority Sector Lending as on 31st March 2023.

Advances to SC/ST Communities

The outstanding advances to Scheduled Caste/ Scheduled Tribe (SC/ST) communities went up to '17,519 crore as of 31st March 2023. The SC/ST communities accounted for 17.73% share in total advances granted to weaker sections by the Bank.

Further, special thrust is given 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.

Gold Loan

Bank's gold loan portfolio increased to '38,518 crore as on 31st March 2023 from '29,316 crore as on 31st march 2022, registering a growth of 31.38% on YOY basis. Within gold loan portfolio, Agriculture gold loan grew by 30.47% contributing '35,829 crore (excluding TWO) in FY 2023 from '27,459 crore in FY 2022. Retail gold loan increased to '2,419 crore in FY 2023 from '1,371 crore in FY 2022, registered a growth of 76.44%. During the year, the Bank has added 303 new gold loan disbursing branches taking total number of Gold Loan designated branches to 5,900 in FY 2023 from 5,601 branches in FY 2022. The increase in spread of Gold loan designated branches across the country with share of geographies other than southern parts stands at 27.11% in FY 2023 as compared to 25.18% in FY 2022. The number of Women beneficiaries of gold loan accounts increased to 10,09,856 in FY 2023 from 8,13,502 in FY'22, added 1,96,354 new such accounts during the year. The contribution of Agri Gold Loan in total Agriculture advances increased to 28.49% in FY 2023 which was at 25.14% in FY 2022 and 22.30% in FY 2021. Average ticket size of gold loan increased to '1.58 lakhs in FY 2023 from '1.46 lakhs FY 2022. Average amount of gold loan per branch increased to '6.52 crore in FY 2023 from '5.23 crore in FY 2022. Credit quality of Gold Loan portfolio remained healthy with GNPA ratio of 0.22% as on 31st March 2023.

During the financial year. Beside many changes in the product bank has imparted training on appraisal of gold jewels/coins and certification to our own staff, in orderto build confidence among the staff while appraising of gold ornaments done by assayers.

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 branches and BC network. With the advent of technology, innovative steps are being taken for serving the unbanked areas. Bank expanded its BC network to 51,780 by engaging additional 12,442 BCs (including 8861 BCs of UPSRLM project) as on March 31, 2023 to cater to rural, semi urban and urban areas across the country. Bank took the following initiatives towards promoting financial inclusion:

• Online NPA Recovery portal for BCs was launched.

• Online Loan Lead portal for BCs was launched.

• Survey of Customers who transacted at BC point was conducted and 94% of Customers rated the services at BC point were satisfactory and above.

• Launched opening of NON BSBD Account at BC Point.

• Launched Android based BC Inspection App for monthly inspection of BC points by officials of the Bank and BC Supervisors.

• As a risk mitigation measure voice over in Bilingual for every transaction was introduced at BC points.

Performance highlights under financial inclusion during FY 2022-23:

• Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts increased by 31.21 lakh (5.63%) and PMJDY deposits increased by '4,920 crore (21.76%).

• The Bank's share in comparison with PSBs stood at 15.30% for PMJDY accounts and 17.50% for deposits under PMJDY accounts.

• Zero balance PMJDY accounts of the Bank reduced to 5.22% as on 31st March 2023 as against 5.75% as on 31st March 2022.

• Cumulative enrolments under micro insurance during the financial year increased by 77 lakh and reached to 3.90 crore as on 31st March 2023.

Performance of RRBs sponsored by Bank of Baroda

The Bank sponsors 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 increased to '1,48,737 crore as on 31st March 2023 from '1,33,080 crore as on 31st March 2022. These RRBs together posted a net profit of '719 crore during FY 2023, increased by 15.49 % as compared with net profit of '594 crore during FY 2022. The net worth of these RRBs put together improved to '5704 crore as of 31st March 2023 from the level of '4,986 crore as of 31st March 2022.

Awards:

• Our sponsored RRBs put together bags 21 Top Performing Awards (BGGB-9, BUPB-6, and BRKGB-6) under various campaigns conducted for enrolment of Atal Pension Yojana by Pension Fund Regulatory and Development Authority (PFRDA).

• Baroda Gujarat Gramin Bank was Runner UP for Best Technology Talent at 18th IBA Technology Conference, Expo and Awards.

• Baroda Gujarat Gramin Bank also conferred with the special prize for Best Financial Inclusion RRB and IT Risk Management at 18th IBA Technology Conference, Expo and Awards.

• Baroda Rajasthan Kshetriya Gramin Bank was recognized with following five awards at IBA Annual Technology Awards:

1. Best Technology Bank of the Year (Consecutive 8th Year).

2. Best Digital Financial Inclusion Award (Consecutive 4th Year).

3. Best IT Risk Management.

4. Best Artificial Intelligence and Machine Learning.

5. Best Digital Engagement.

Further Runner Up in following two categories:

1. Technology Talent.

2. Fintech Collaboration.

• Baroda Rajasthan Kshetriya Gramin Bank also won award for outstanding performance in AIF (Agri Infra Fund) Scheme and NRLM by Ministry of Agriculture and NRLM.

Stressed Asset Management

The Bank believes that continuous day-to-day monitoring is the first step towards reduction in non-performing loans and in 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 having 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), -12- Stressed Assets Recovery Branches (SARB Branch) at zonal level were established to handle NPA accounts other than NCLT with outstanding balance above '5 crore. These Branches are under direct supervision of corporate office to reduce TAT Further -65- Regional Stressed Assets Recovery Branches (ROSARB Branch) at Region level were established to handle NPA accounts with outstanding balance above '50 lacs to '5 crore.

Under Govt of India Digital Initiative, Bank has taken several steps for end to end digitalization 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 proposals it reduced the TAT.

3. Bank is member of eBkray portal which is being used for auction of properties under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) & banks success rate under SARFAESI is 52%.

Bank also adopted the following strategies for recoveries and reduce slippages.

1. To have a proper monitoring of the portfolio of Agriculture, MSME and Retail Loans we have taken a cluster / area approach with dedicated recovery officers.

2. Proper allocation of small NPA accounts to Recovery Agents / Business Correspondents / Feet on Street to be done by Portfolio Managers at ZO/RO level and properly monitoring them.

3. Arranging the National Lok-Adalats & Introducing the Pre Lok-Adalat meetings for maximum participation of borrower during the Lok Adalats.

4. Bank has initiate the SARFAESI action in all eligible NPA accounts and continue the action till conclusion / disposal of asset & recovery in the account. We are also listing/ publishing the auction property details on Bank's website, Newspaper, Radio, social media web portals and as well as leading property web sites.

The movement of NPAs during the last two years is as

under:

(Rs. in crore'

Particulars	FY 2022	FY 2023
Gross NPA	54059	36764
Gross NPA (%)	6.61%	3.79%
Net NPA	13365	8384
Net NPA (%)	1.72%	0.89%
Additions to NPAs	14255	11150
Recovery/ Upgradations	8448	10100
Write offs including TWOs	17967	17998
Recoveries in write off accounts	3578	4781
Provisional Coverage Ratio (including TWO) (%)	88.71%	92.43%
Provisional Coverage Ratio (excluding TWO) (%)	75.28%	77.19%

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

(Rs. in crore)

Asset Category	FY 2022	FY 2023
Standard Advances	764061	932784
Gross NPA	54059	36764
Total Gross Advances	818120	969548
Gross NPAs comprising
Sub-standard	5280	5439
Doubtful	31512	19182
Loss	17267	12143
Total Gross NPA	54059	36764

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 had launched in FY 22-23 its special One-Time Settlement (OTS) scheme "Rin Mukti Yojana" for settlement of NPAs in small value DB - II, DB - III, Loss, PWO & TWO accounts and "Vasooli Sankalp" for settlement of NPA/TWO/ PWO accounts having outstanding balance up to '1.00 Crs. The Bank recovered NPA accounts amounting to '596 crore (NPA accounts Balance reduced by the '1326 crore) under Rin Mukti Yojana and recovered '1665 crore under Vasooli Sankalp scheme.

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 in coordination with Credit Monitoring Vertical to find out the resolution and exploring all prospects of recovery, up gradation.

International Banking

The Bank has -93- overseas branches/offices across -17- countries comprising of -40- 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 addition, Bank has a wholesale branch in GIFT City (SEZ), Gujarat, India which is treated as an offshore banking unit and has been 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.

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 portfolio by taking exposure on Non-India related syndication loans in the primary and secondary market. Also, various new products have been launched to broaden the product basket.

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 FY'22 Bank has closed its operations in Hong Kong and South Africa while in FY 2023, Bank had closed one of its branches in UAE. 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 March 31, 2023, the Bank's total business (net) from international branches was '3,20,722 crore and constituted 14.95% of the global business. Total deposits were at '1,56,313 crore while net advances were '1,64,409 crore as on 31.03.2023.

Domestic 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 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 2023 stood at '3,52,875 crore. The share of SLR securities in total investments was 83.22%. The percentage of SLR securities (unencumbered) to Net Demand and Time Liabilities (NDTL) as of 31st March, 2023 was at 23.89%. The Bank capitalized on the opportunities offered by yield movements. The Bank managed its portfolio efficiently and maintained yields on total investment for FY 2022-23 at 6.84% (including profit on sale). During FY 2023, the profit on sale of investment and foreign exchange earnings were '1,115 crore and '124 crore respectively.

Government Business

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), CBIC, ESIC, MHFW, GST, e-stamping and Sovereign Gold Bonds. These products have contributed towards collection of fee income of '120.48 crore and also enhancing Bank's goodwill.

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. On 01.02.2023 the bank has integrated with newly launched e-Filing portal (CBDT TIN 2.0) . All the branches of the bank are now authorized for collection of OTC CBDT challans.

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 launch campaigns to constantly motivate all the branches to enhance business.

Appreciations from Government bodies during FY 2023;

• Awarded Certificate of Excellence for Winning Wednesday in recognition of achievement of Targets & contribution towards Atal Pension Yojana.

• Awarded Makers of Excellence 5.0, Best Performing Executive Director, Leadership Campaign 4.0, Award of Excellence & APY Annual Award from PFRDA.

• Qualified under Beat the Best & Be the Best campaign for APY launched by PFRDA and awarded Exemplary Award of Par Excellence.

Wealth Management

Growth of Wealth Management business is linear to growth in economy and burgeoning growth of India economy augurs well for Bank of Baroda with captive clientele base of 160 million. Hence, Wealth is emerging as a key focused area for your Bank. The efforts of your Bank are being recognized in the industry, and your Bank is now internationally accredited & winner of ‘Global Private Banking Innovations Awards 2022' for Outstanding Wealth Management Offerings for affluent clients.

The Bank is constantly hiring skill resources from the market to cater to the affluent segment (Radiance) whereas incumbent staff, having requisite regulatory certificates and

knowledge of Wealth, is deployed at potential branches to reach out to the customers.

Bank has also launched ‘Radiance Private' segment for the super affluent clients and is on hiring spree to create robust team and value proposition.

The Bank is bracing up for delivering efficient and seamless services to the customers by focusing on product, process and people. To smoothen the process of distribution of investment and insurance products, your Bank is investing in robust technology to reach out to customers, through digital mode giving them a delightful experience. With this objective your Bank has on boarded new aged tech companies in FY 2023, to develop digital and customized journey, providing insurance and investment solutions. These solutions will enable Bank to make efficient use of Al and analytic to offer customized products to the customers.

The Bank believes that only skilled resource can cater to the clients' requirement and hence the Bank has entered into some reputed training providers institutions.

However, leveraging the vast network of branches Bank collected premium of INR 1288 Crore under Life Insurance and joined the league of handful of Banks having cross the milestone of '1000 crore premium through bancassurance channel. This performance has enabled your Bank to register 31 % growth in Life insurance premium segment. Similarly, collective premium from non-life insurance has grown 23 % from '490 Cr to '605 crore. MF AUM stands at INR 9740 Cr despite the market volatility.

On engagement front, with internal and external stakeholders, Bank is reaching out to affluent clients with ‘Wealth Insight' monthly magazine and customer engagement conclaves at major cities, keeping customers abreast of market happenings and Bank's initiatives in Wealth space. Whereas for internal staff your Bank is enhancing skill & knowledge of staff deployed in Wealth Business by arranging Webinars, inviting market experts on regular basis.

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

bob World activation increased substantially during FY 2023 to 102.72 Lakh from 101.45 Lakh during FY 2022, thereby registering a growth of 1.2% during the period. Financial transactions on bob World also increased to 1,864.7 lakh in FY 2023 from 1,483.94 lakh in FY 2022, grew by 25.66%

during the period. The Non-Financial transactions increased by 26.51% to 27,745lakh in FY-2023 from 21,931.55 lakh in FY-2022.

Debit cards

The Bank has an active card base of 8.25 crore as on 31st March'2023, an YoY increase of 11%.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 and launched 26 campaigns during the period from Oct'22 to March'23 with various popular merchants such as Xiaomi, Swiggy, Meesho, Myntra, EaseMyTrip, Yatra, JioMart, Tata.

In FY 2022-23, Bank has launched "bob World Sapphire" (Male & Female sub-variants) and "bob World Opulence" (Metal card) debit cards which are exclusively curated for our premium and Super premium customers bundled with value added features. During the year Bank has also launched "bob World Yoddha" & "bob World Agniveer" debit card exclusively for Defence personnel and "bob World Pudhumai penn" debit card for Girl Students in the state of Tamil Nadu. Bank's Platinum debit card base has increased to 1.24 crore as on 31st March 2023 registering an increase of 83% over the previous year.

Baroda FASTag (National Electronic Toll Collection - NETC)

Bank has issued 1.71 lakh FASTag in FY 2023. Bank's FASTag is available to BOB customers through bob World mobile app and customers as well as non-customers can apply for FASTag through FASTag customer portal.

Bharat Bill Payment System (BBPS)

Bharat Bill Payment System (BBPS) is an interoperable platform for repetitive bill payments which offers real time bill payment and recharge services to customers. BBPS is an RBI initiative product and managed by NBBL (wholly owned subsidiary of NPCI). Our Bank is authorized as Customer Operating Unit (COU) and Biller Operating Unit (BOU) for facilitating BBPS services. In FY 2023, Bank has processed 3.29 crore bill payment transactions amounting approx. '4,800 crore. Bank has also on-boarded Pimpri Chinchwad Municipal Corporation (PCMC) biller under Municipal Tax category for facilitating their bill collections through Bank's Biller Operating Unit (BOU).

ATM

Our Bank is having the wide network of 9,764 ATMs and 1,637 Cash re-cyclers as on 31st March 2023 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. Our Bank has launched the facility of Interoperable Card less Cash withdrawal (UPI ATM)

at 4725 locations where customer can withdraw money using UPI QR services (ICCW) of Bank.

Bank is also in process of revamping/replacing the existing 6592 ATMs sites and machine under OPEX Model. As of 31st March 2023, 4646 are made live under OPEX model for seamless ATM services and enhanced customer's experience.

Internet Payment Gateway (IPG)

The Bank's IPG infrastructure bob World Merchant Gateway is an online service that is being offered to customers to conduct their business online by accepting payments securely in real time. The Internet Payment Gateway provides an interface between merchants and their customers for secure payment processing using online modes.

bob World Merchant Gateway facilitates receiving payment online from debit/credit card, Net Banking, UPI, Wallet, AEPS, AADHAR PAY, QR code etc. And offline modes i.e. NEFT/ RTGS in a simple and secured manner, which is essential for e-Commerce/online business.

To provide a seamless and customizable service, Bank has tied up with 13 aggregators and 3 master merchants. Bank achieved a growth of 16% in IPG merchant on-boarding in FY 2023.

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 2023, an increase of 46% merchant on-boarding for UPI QR in comparison to FY 2022. There is tremendous growth in UPI QR transactions from 2.34 Crores to 6.63 Crores.

bob World (Internet Banking):

During FY 2023, 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 99.71 lakh during FY 2023 from 88.09 Lakh during FY 2022.

Baroda TabIT:

The Bank embarked upon digitizing its customer on boarding process through tablet for instant CASA opening along with bundle of services (Personalized Cheque Book, Personalized Debit Card, Mobile Banking with MPIN, SMS Alert, Internet Banking) and POS, UPI QR, IPG lead generation through its TAB banking platform - bob World Tab. Bank opened more than 63 lakh savings account and 2.3 Lakh Current accounts through this platform during the FY 2023.

Credit Card Issuance and Self-help Group account opening has been initiated through bob World Tab. Feedback functionality has implemented in bob World Tab Platform for capturing customer experience.

Company Account ( Public / Pvt ) Opening has started through bob World Tab and total 1413 account are opened

so far through bob World Tab ( Launch on 22 Nov 2022)

The bob World TAB on-boarding platform is now extended for Existing Customer with new 17 Services to Digital Banking Units. These Services are;

Customer Complaint Registration - Tracking of Complaint & Suggestion/Registration (Redirections)

Online FD account opening for ETB customers

Online RD account opening for ETB customers

Blocking, of Debit Card service

Email ID Updation service

Online PAN Number Updation

Account Statement Service

Cheque Book Request -ETB

Nomination Update - ETB

Lead Generation ( HL/PL/AL/EL) - Redirections - ( Self Services)

Mobile Banking Registration service for ETB customers through TAB:

Internet Banking Registration service for ETB Retail customers through TAB

APY Opening through TAB PMJJY - PMSBY Micro Insurance

Self-Services - Jansamarath Portal , Internet Banking , bob Wolrd Kishan , B-3 Accounts

Lead Generation for Assets products ( Redirections)

Personnel Loan & Auto Loan ( Assisted Mode - Redirections)

Fun7ctionality	FY 2022	FY 2023	Growth YOY %
Saving Bank Account	5046885	6301204	24.85
Current Account	147908	230046	55.53
SHG A/c	11221	50077	11.50
Credit Card Application	190960	1196735	56.00
UPI Merchant On boarding	199772	520424	160.51
Company account	0	1413

WhatsApp Banking:

• WhatsApp Banking User registration -

Year	Number of Users registered on WhatsApp Banking (in lacs)
FY 2021	6.16
FY 2022	14.04
FY 2023	40.48
Total registration	60.68

• WhatsApp Banking Transactions -

Year	Number of WhatsApp Banking Transactions (in lacs)
FY 2021	47.8
FY 2022	207.5
FY 2023	343.4

Digital Banking Units:

In the Budget -2022, Government of India announced to set up 75 Digital Banking Units across 75 districts with an aim to take digital banking to every citizen.

Our Bank had been identified as core committee member by IBA for setting up of Digital Banking Units. IBA conducted various meeting with Public sector Banks and private sector Bank for finalizing the setup of Digital Banking Units. Our Bank has set up Digital Banking Unit in 8 districts (Vadodara, Silvassa, Kanpur Dehat, Varanasi, Karauli, Kota, Indore and Leh). As of 31.03.2023, bank has operationalised 12 DBUs.

Digital Lending

In these times, the paradigm shift in technological advancements has reshaped the global era of digitization. Almost every industry is trying to drive the change through digitization and the banking industry is on the frontline of exploration and innovation.

The financial services industry is undergoing rapid and far-reaching transformation, underpinned by emerging technologies and socio-economic drivers. This transformation is fundamentally changing market structures and opening opportunities for both incumbents & challengers to create innovative, game-changing alternative products & services.

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.

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

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

Retail Initiatives:

• Bank has launched Digital Auto Loan journey with customer self-service journey, Bank Officer assisted journey and Dealer assisted customer journey.

• Bank has launched Pre-approved Auto Loan for ETB

customers that enables an existing customer to get auto loan digitally for purchase of a vehicle without any separate income assessment process. This will result in significant reduction in TAT.

• Bank has launched Digital Education Loan journey for pre-approved institutes & non-preapproved institutes. Journey is made ready for Educational Development Program.

• Branch Officer Assisted Journey for Personal Loan

to facilitate the branches to carry out / support the Digital Personal Loan process for customers at different stages of the journey.

• Expanded gamut of pre-approved loans with launch of Pre-approved Home Loan Top-up for Bank's existing home loan customers.

• Bank has launched Digital Pensioner Loan for Bank's existing pension customers.

MSME Initiatives:

• Bank has enhanced limit from Rs.25 lakhs to Rs.1 crore for Digital Renewal of MSME loans. With enhancement in limit, additional 80,000 accounts can be renewed digitally.

Agri Initiatives:

• Bank has launched Digital Journey for Gold Loan to

provide enhanced banking experience to the customers.

• bob World Kisan platform has been revamped to align with bob World branding. The platform is revamped in order to enhance customer experience and to increase the traffic on the platform by offering new functionalities like lending, insurance, integrated marketplace and new advisory services.

• Bank has launched digital process for renewal of BKCC loans.

• Bank has launched digital journey for BKCC upto inprinciple journey

Analytics Cyentre of Excellence (ACoE)

The Bank continues to accelerate in data driven banking. Self-service analytical capabilities are rolled out to all business units and branches. The digital banking initiatives are being augmented with advanced analytics and real time use cases. The Bank is going beyond cross sell, up-sell, early warning signal, etc. use cases to advanced ALM, Risk and AML/ Fraud management with advanced machine Learning

techniques. The focus of the bank is to drive personalization

while establishing a strong risk management framework on

the back of data and analytics.

Information Technology

• Bank has successfully implemented Account aggregator (AA) ecosystem as an alternative mechanism to provide the bank statement and related details through the ecosystem with customer's consent.

• Bank has revamped the UPI platform to handle better transaction processing capability to cater the multi fold increase in transaction volume.

• Bank has implemented Card on file tokenization (CoFT) and Token Life Cycle Management for RuPay & MasterCard variants.

• Bank has set up Digital Banking Units for delivering digital banking products & services as well as servicing existing financial products & services digitally.

• Bank has introduced various enhancements in VCIP (Video based Customer Identification Process/Video KYC) process viz. life certificate, language based call assigning, digital education loan etc. along with new centers.

• Bank has implemented new portal for facilitating release of funds under Centrally Sponsored Schemes (CSS) of Govt. of India.

• Kisan Portal revamping done to make the portal more customer friendly and to extend the service to non-bank customers.

• Bank has rolled out pilot Central Bank Digital Currency (CBDC) referred to as e' (Digital Rupee) is a digital form of currency notes issued by the RBI. Digital Rupee is to provide an alternate to cash which is secure, fast (instant settlement) and cost-effective payment system for both individuals and businesses.

• Bank has added new services in Mobile Banking application "bob World" for the customers including Persona based theme for Senior Citizens, NPS subscription through bob World, Insta-Demat Account Opening, Common QR scanner for UPI & Bharat QR, Wearable (bob World Wave) issuance and management, Chatbot, Allowing PC/FB accounts access, Account statement/lnterest & TDS certificates in Hindi, Smart search, Credit Card integration, Sovereign Gold Bond issuance, eKVP account opening etc. bob World contains 200+ services for 360? banking needs of the customers.

• Bank has added new services in Internet Banking Platform to enhance customer experience viz. ePA PFMS online payments, Integration with TIN 2.0 for Tax payments, Multiple integrations with state treasuries for Tax payments, Enabling bulk NEFT/ RTGS upload feature for corporate Users, NPS registration & contribution etc.

• Bank has augmented the infrastructure to sustain load of all applications based on the present volumes, future projections.

• Bank has automated many internal banking processes to improve the efficiency.

• Bank has enhanced CRM capabilities by integrating Lead management module for Retail Asset products, Retail, MSME, AGRI, Credit Card & Wealth products.

• Bank has upgraded AML in international territories (IFSC BU, Uganda, Botswana, Oman, Australia, Seychelles, Fiji & UK Wholesale).

Cyber Security

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 which is aligned with business strategies of Bank for comprehensive IT risk management. To provide cyberresilience & for managing enterprise risk, Bank continuously implements adaptive security controls to mitigate risks, thereby minimizing cyber-attack surface. The Bank follows both NIST (National Institute of Science and Technology, USA) Cyber Security Framework and RBI Cyber Security Framework.

Cyber Security is being monitored and managed on 24X7X365 basis by Cyber Security Operation Center (CSOC) for monitoring active threats in Bank's environment. The Global CSOC is tightly coupled with all the verticals of the bank at domestic and international territories. It is equipped with state-of-art cyber security solutions for threat modelling, detecting, analyzing and mitigation of cyber-threats. Bank's Data Centre and Data Recovery Centre are ISO 27001:2013 certified.

In addition to the existing checks and controls, Bank undertook the following measures to enhance cyber security:

• 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.

• Customer Awareness includes Cyber Security awareness messages via SMS & E-mail, social media platforms, websites, ATM's for educating customers about cyber security.

• 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.

• Anti-Phishing & Brand Monitoring Services

Marketing

The Bank continued to have its impactful presence across the media spectrum reaching out to its customers through electronic, radio, OOH, digital, and events. During the year, Bank continued to further thrust on its flagship digital sub brand ‘bob World' by highlighting additional new features and other products campaigns such as Home Loan, Car Loan, MSME loans, Online SB Account Opening etc. Bank celebrated ‘Azadi Ka Amrit Mahotsav' during anchor months (July 2022 and January 2023) on Pan India basis with special focus on SLBC states (Gujarat, UP and Rajasthan).

Using an innovative approach, Bank launched 115 hours of RJ Marathon to commemorate Bank's 115th Foundation Day giving insights into the rich history, legacy, products, and remarkable achievements over the years. On the same lines, Bank associated with reputed and vibrant platforms like Rashtra Sarvopari Sammelan, India Economic Summit and Sahitya Aaj Tak which promotes freewheeling conversations around India's Culture, Economy, Politics, Literature, etc

Bank has a history of associating with ace athletes and sportspersons making them brand endorsers and play a crucial part in their sporting career. The Bank continuously supports the youth of the country through its various banking and non-banking initiatives. This association reflects the Bank's ethos of adding value to its customer experience by choosing to associate in various Sports. In order to reach these Millenials and sports loving youth; Bank initiated television campaigns during All England Open Badminton Championships, 2023 and FIH Hockey World Cup at Odisha and also run a special TV campaign on occasion of National Sports Day.

Bank of Baroda has always been a strong supporter and enabler of women empowerment through its various products and services. In addition, Bank has always been a strong Launchpad for women in sports like in the case of Ms P V Sindhu who is a renowned sports icon and is associated as Bank's Brand endorser. In order to further deepen the association with our new Brand endorser Ms. Shafali Verma, Bank released TV Media campaigns during T20 Women's Asia Cup 2022, U19 Women's T20 World Cup and Maiden Women's IPL 2023.

Bank of Baroda's Sun Run 2.0 took place on January 29, 2023 at Jio World Garden in Mumbai. Ms. PV Sindhu, India's badminton superstar and Bank of Baroda's brand endorser along with the top management from Bank of Baroda including Shri Ajay K Khurana, Executive Director, Shri Debadatta Chand, Executive Director and Shri Lalit Tyagi, Executive Director flagged off the event. Over 3500 people participated in the event, resulting in an electrifying and fun atmosphere. Sun Run 2.0 which featured two race categories - a 10 km timed BOB Pro Run and a 5 km non-timed BOB Fun Run was aimed at promoting fitness amongst Corporate employees thereby building a much stronger and greener environment.

Bank of Baroda associated with ultra-marathoner and Founder Director of Team Fab Foundation, Shri Kumar Ajwani for the BOB Golden Quadrilateral Run, covering 5,933 kilometers in ~100 days. The run was recognized by Guinness World Records for the fastest time to travel the Indian Golden Quadrilateral on foot (Male) and also been recognized by World Books of Records, London. On social media platforms, Bank of Baroda extensively promoted the #GoldenQuadrilateralRun of Mr. Kumar Ajwani, supporting the rehabilitation of Indian soldiers, who have been wounded in battle while defending our country as well as helping tribal schools.

As part of Bank Green initiative ‘#BOBGreenRideWithMilind 2.0, Ek Pehal Swachh Hawa Ki Aur,' was extensively promoted on social media which was partnered with the environment advocate and fitness enthusiast, Milind Soman. Under this initiative, Milind embarked an 8-day sustainable journey on a bicycle and an electric scooter covering about 1,400 km from Mumbai to Mangalore. Various social media posts and videos were published promoting eco-friendly transportation, a green lifestyle as well as the importance of health & fitness.

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. To promote literature Bank has initiated ‘Bank of Baroda Rajbhasha Samman' awards for translation of Novels in Indian languages.

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, MSME, Mudra Loans etc. A total of 100+ Campaigns were executed for awareness as well as business conversions for various products & services such as Home, Car, Personal & MSME loans. More than 10 lakhs leads were generated through Digital paid Marketing activities with approx. sanction of '170002.

The Bank's social media family achieved a remarkable milestone in the FY 2022-23 by gaining over 2 million followers across various social media platforms, with the continued and aggressive social media strategy. As a result, the Bank has achieved the milestone of a total of 5 million+ followers. A significant contribution in the growth has been through the #IAmSocial campaign, wherein almost 80% of the Barodians came together and participated with full enthusiasm building an organic fan base for Bank.

Further Bank continued its aggressive social media strategy, promoting its products and services, throughout the year, strengthening its digital presence. The Bank achieved a milestone of 5 million followers across platforms by end of

July 2023.

Bank has been doing multiple social media campaigns to empower women and promote gender equality. In continuation of its efforts, the third edition of digital IP #SmashItWithSindhu wherein the Bank provided a platform to bring forward the women who have done commendable work to promote gender equality and meet PV Sindhu and Shafali Verma.

Throughout the year, the Bank's social media strategy effectively showcased the numerous features and offerings of bobWorld. In particular, promotional efforts were intensified during the festive season.

The details of Bank's social media presence are as below:

Social Media Channels	Statistics (No of likes/Followers) as on March 31 2023
Facebook likes	2.96 million +
Twitter followers	9.29 million +
YouTube Subscribers	5.22 million +
LinkedIn followers	2.57 million +
Instagram followers	4.43 million +
Quora Views (started on 1st Jan 20221	381,412 +

In Website operations, with the go live of Bank of Baroda UK Ltd website, Bank has crossed another MILESTONE in website centralization exercise. With this the bank has successfully revamped and centralized all its 19 websites including domestic corporate website, international territories/subsidiary websites and the bob World website under the centralization project. In FY 2022-23 total session in website is 71.65 million and total 34.71 million users visited the website, Out of total session 67.44% traffic is coming from Organic Sources.

The website enhanced features and functionalities now

include:

• Robust search functionality with improved voice search

• Official blog, Lead Management System (LMS) and sophisticated calculators

• Multilingual capabilities Advanced filters

• WCAG 2.0, GDPR compliance, cooks management capabilities

• Accelerating Digital Growth

• Regularized Search Engine

• Optimization (SEO) for all websites Set-up of analytics for data gathering, analysis and action Supporting digital marketing ecosystem with tracking and conversions

• Improving the page load speed time by implementing the best SEO practices

Bank Secured top position in EASE 5.0 for two Search Engine Optimization Performance related parameter, Domain Authority and Keywords Ranking. Organic session in Banking Mantra section grew by %417 on Y-o-Y As per Google search console data in FY 2023 Bank of Baroda website pages had total impression of 511 million out of which the total no of clicks was 53.8 million. Performance of product pages saw a healthy growth as listed in table below"

Product	Y-o-Y Growth
Personal Loan	150%
Savings Account	58%
Home Loan	40%
Gold Loan	342%

Total 3,95,899 Leads collected for various products through bank's corporate website channel during FY 2022-23. Top 5 products for highest leads collected during FY 2023, Mudra Loan (74,073), Salary Package for the Brave Beginners- Agniveers (58,217), Baroda Home Loan Takeover Scheme (37,245), Pradhan Mantri Jan Dhan Yojana (36,957) and Mortgage Loan (17,406). The details of the various Social Media Awards received by the Bank during FY 2023 have been given in award section of the report.

From a Public Relations perspective, the aim was to build the Bank of Baroda brand, highlighting the Bank's financial performance as well as communicating other key announcements across digital banking, business initiatives, product launches, interest rate offers, partnerships, marketing campaigns, award wins etc. In FY2023, increased the Bank's visibility and positioned Bank of Baroda as the #2 Public Sector Bank and amongst the top banks in the country.

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

The Bank launched ‘Our Code of Ethics' on 21st May 2022, which has been a milestone in the journey of ethics which the Bank embarked upon by setting up a dedicated Corporate Ethics department and an Apex Level Ethics Committee in 2021. The launch of the Code of Ethics was undertaken at an event where the senior leadership of the Bank was assembled, in the presence of the Managing Director and Executive Directors of the Bank. The department works on the Ethics Agenda of the Bank primarily comprising of developing and implementing the Code of Ethics, conducting round the year education and awareness programmes and devising metrics for measurement of Ethics.

The Code of Ethics is 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 of Ethics has been benchmarked with peer organizations from around the world and has been structured on a stakeholders-centric 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 Code addresses contemporary challenges that the Bank and its employees face, and outlines the responsibilities they carry when addressing emerging critical issues in areas like cybersecurity and climate change.

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. The Code gives us the strength to do what is "RIGHT" and will help to enhance our Bank's brand and reputation. The Bank's leaders have been supporting the cascade of the Code through multiple employee engagement events.

One of the most powerful strategies for ensuring the success of our ethics agenda is developing effective channels of communication and towards this endeavour, ‘Speak Up!' initiative in line with the Code of Ethics was organized which highlights the channels available in the Bank to raise complaints and issues against unethical practices. Further, a quarterly in-house journal - ‘Baroda Sanskriti' - was launched with creative contributions from the employees. Regular Snippets from the Code of Ethics, quizzes, competitions, bilingual Audiobook on COE and other digital communications like the initiative- ‘Naitik Series' -videos on ethical dilemmas from the Ethics Department also ensure better awareness of ethics. The Department also carried out a campaign of taking the Ethics Pledge in HR Connect by all employees and achieved an overall completion of 97%, for the Bank as a whole.

Webinars, dedicated training programmes and mandatory e-learning course on Ethics being conducted for all staff members 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. The Bank ensured that frequently used functionalities by customers were made available through digital channels and the contact centre. The 24*7 contact centre has the capability to connect with customers in their preferred languages. Apart from Hindi and English, the language capability was increased to nine regional languages.

The highlight of Contact Centre:

1. The contact centre handled more than 1.5 lakh average inbound customer calls per day during the year and over 1.00 lakh calls daily responded to through IVR.

2. Average more than 1.00 lakh outbound calls per day for sales and surveys.

3. Contact Centre provided emergency services to 6 overseas territories i.e. Botswana, Mauritius, Uganda, Oman, Fiji & Seychelles.

4. 24*7 FRMS alerts by Contact Centre.

5. L2 helpdesk at Contact Centre for exclusively bob World internet and bob World mobile banking related complaints.

6. Contact Centre is providing 15 IVR services and 16 services through agents 24*7.

7. First in industry contact centre started live Video call and live web chat facility for customers.

8. Now contact centre is equipped with many Al-based technologies like Speech Analytics, Social Media Tools, Automated Email Tool, Genie training Tool, AURA call quality Tool, Power Bl smart dashboard and many more technologies.

During FY 2023, the Bank saw significant improvement in the usage of remote channels for managing grievances. Approximately 93% 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. 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 for the grievance redressal of customers before they approach the RBI Ombudsman. All complaints, which are rejected or partially accepted by the Bank, are systematically escalated to the Internal Ombudsman for review. This enhances customer confidence in the Bank's systems and expedites the process of grievance redressal, thus making it even more transparent.

The Bank's code of commitment to customers and MSMEs, citizen charter, grievance redressal policy, and RBI Integrated 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 the Board for Customer Services addresses the issues relating to the formulation of policies

and assessment of compliance with the same with the aim of consistent improvement in the quality of customer service.

Bank's ChatBot "ADI" is already functional on its website. ADI assists customers in navigating through various pages of the website while providing an interactive experience to the customers. A few features of "ADI" are an instant response to our customers' queries, convenience to chat, available 24*7, digital assistance, and a seamless chatting experience. Bank has also tied up with True Caller 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 fraud.

The Bank has also changed its toll-free number. It is now an 8-digit number instead of the earlier 11-digit number. This was done after it had come to notice that fraudsters obtain a number similar to Bank's toll-free number and try to dupe customers posing as Bank officials. This has been done with a view to safeguard our customers from vishing.

Handling Customer Complaints

Customers can very easily lodge their complaints directly with the Bank by visiting its website of the Bank and clicking the appropriate link. Alternatively, the customers may also call the toll-free number and get their complaints lodged in the CRM portal of the Bank. Customers also have the option of sending their complaints to Branches and other offices via any mode. All the complaints will be entered into the CRM portal. The complaints are automatically addressed to the concerned resolver based on the category of complaint selected at the time of lodging the complaint.

Bank also has an Internal Ombudsman mechanism in place, as per regulatory guidelines, to instil confidence in the customers regarding the resolution of their complaints.

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

To monitor the quality of resolution being given to the customers, Bank subjects 100% of Non - ADC complaints and 5-10% of ADC complaints to quality check. The outcome of the quality check is shared with the concerned resolver group. To make the process of quality check more efficient and less laborious, the Bank, in collaboration with IIT - Bombay has developed an AI Tool, which will assess the quality of redressal, thus reducing the time and manpower required.

Branch Network

As of March 31, 2023, the branch network of the bank is as

under:

	FY 2022		FY 2023
Domestic Branches	Number of Branches	% Share in Total	Number of Branches	% Share in Total
Metro	1,766	21.62	1,787	21.79
Urban	1,475	18.06	1,471	17.94
Semi Urban	2,083	25.50	2,075	25.31
Rural	2,844	34.82	2,867	34.96
Total	8,168	100.00	8,200	100.00
Overseas Branches/ Offices (including branches of overseas subsidiaries)	94		93

The Bank opened new 73 domestic branches and merged 41 branches with existing branches during FY 2023.

Currency Chests

The number of currency chests stood at 137 as on 31st March 2023. 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, measurement, 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 defense", each of the three lines has an important role to play. These are:

i. First line of defense - 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 defense - This comprises of 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 defense.

iii. Third line of defense - 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 specialist Risk advisor on Board. 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 Bank's 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 and making them updated on various risk appetite limits.

Climate Risk

The Bank understands that environmental sustainability is critical for the long-term growth of our business, and accordingly has started working in specific domains of Energy efficiency, Waste reduction, Biodiversity, Water

conservation, Green infrastructure, Sustainable agriculture etc. By prioritizing sustainability in these areas, we can create a path to sustainable development that benefits both, economy and the environment. It is also important to promote understanding and awareness on emerging threats and educate stakeholders - customers & vendors alike, on good practices to achieve long-term environmental sustainability.

With sustainable finance in focus, changing investment patterns have started altering financial markets configuration and scope which will significantly contribute towards this noble cause. As we understand, multi-stakeholder approaches are necessary for this complex global challenge. The Bank is actively looking into catalysing finance and investments towards decarbonisation, positive social impact and improved governance with an emphasis on design and delivery of sustainable finance strategy. The Bank is preparing an approach for products and practices towards augmenting mitigation, adaptation and resilience for climate risk related challenges.

Bank has also developed an Approach Paper for management of risk arising due to Climate Risk & Sustainability which covers, inter-alia, Governance Structure; Strategy to address climate change risks and Risk management structure to effectively manage them from a micro-prudential perspective.

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 by adding three MSME score card models to bring in efficiency and strong data management system. The internal ratings are validated by independent rating validating authority.

The Bank has put in place prudential caps across industries, sectors and borrowers with an objective to build a resilient portfolio and de-risk from portfolio concentration. The Bank has developed in-house models for risk assessment of various Countries, State Governments, Group Borrowers etc. and setting exposure caps. As a part of enhanced exposure monitoring, quarterly reviews are carried out for the Bank's key exposures, segments, industries and sectors. A dedicated team tracks internal & external developments to assess impact on the portfolio performance and recommend pro-active remedial actions. The Bank also conducts comprehensive Thematic review comprising sector outlook & other event-specific impact studies.

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 defined policies to 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 modified duration, 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. MidOffice also 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 organization. ORMF comprises the organizational 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 endeavor to use the best of technology, we have procured a web based Operational Risk Management System 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.

Efforts are made for inculcation of risk culture, values, beliefs, knowledge, attitudes and understanding about risk among the staff. In order to ensure this, Campaigns are carried out to create awareness in the staff by the means of emails, workshops, webinars, meetings, fliers, magazines, E-Learning modules etc.

Business Continuity Plan

Bank has a detailed and effective Business Continuity Management (BCM) framework in place for ensuring continuity of operations and rendering customer service at the Branches and Offices during disruptions. The framework is in line with the guidelines issued by RBI and global best practices. The Bank continuously works towards strengthening the business continuity preparedness. Bank is also in process of obtaining ISO 22301:2019 certification.

The Bank has ISO 27001:2013 certified Data Centre and Disaster Recovery site. Bank's Disaster Recovery 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, Anti 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 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 has 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.

Amongst several activities, the domestic compliance function conducts on-site compliance test checks on more than 93 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% branches are randomly selected on a quarterly basis. Bank also conducts onsite compliance test check of various functions on half yearly basis. Off-site compliance test check of around 52 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. The above activities helps in maintaining a robust compliance posture of the Bank.

An annual group wide compliance plan is prepared and regular monitoring is carried out for ensuring adherence to the plan. Bank also undertake Compliance Risk Assessment (CRA) of the Bank annually by sourcing the parameters from RBI's Tranche-III data template, Onsite/Offsite/Vertical Test check reports etc. and derive CRA score. Bank also uses CRA matrix to prepare Risk Oriented Activity Plan for timely compliance of non-complied Regulatory parameters.

Bank has also taken various new initiatives such as creation of Data Analytics Cell (DAC) for data dump analysis in order to identify the gaps in the system and processes and to take corrective action. Product analysis is carried out to ensure that the new / existing product is working as per the expectation and fulfilling all Regulatory guidelines. Similarly, Circular vetting is done to ensure that the guidelines issued by the vertical is commensurating with the RBI / Statutory guidelines. Moreover, some Important Regulatory and/ or Statutory guidelines had been identified, being of prime

importance, since any breach in these guidelines may invite adverse observation of the Regulator. These guidelines are termed as Key Compliance Indicators (KCI) and monitored at periodic interval to take corrective action immediately incase of breach/deviation. These activities shall help the Bank in further strengthening the compliance posture of the Bank

Bank has also developed a portal to collect the data from field functionaries on penalties, displeasure letters, warning letters, etc. on real time basis. It enables the Bank to monitor the data centrally and to take corrective action immediately.

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 is encouraging 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.

There were no significant incidents reported during FY 2023 relating to compliance failure other than breach of RBI guidelines on Small Account and failure to pay the interest rates in certain term deposit accounts as per the schedule of interest rates.

KYC/ AML Compliance

The Bank has a well-defined KYC-AML-CFT policy. On the 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 electronically files Cash Transaction Reports (CTRs), Counterfeit Currency Reports (CCRs), Non-profit organizations Transaction Reports (NTRs) and cross border wire transfer (EFT) reports to Financial Intelligence Unit- India (FIU-IND), New Delhi on its portal every month within prescribed timelines.

The Bank has an established Central Transaction Monitoring Unit (CTMU) and put in place 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' is done on a half yearly basis. For carrying out Re-KYC of eligible customers, the Bank has developed an automated process for identification and generation of notices/ sending SMS/email to notify them for submission of requisite KYC documents.

The Bank implemented Central KYC (CKYC) process for registration of newly on-boarded customers' KYC information on Central KYC Registry. CKYC number was allotted to 649.15 lakh customers as of March 31,2023.

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 headed by General Manager / Chief General Manager administers various types of Audits i.e. Internal Audit, IS Audit, Credit Audit, Concurrent Audit & Management Audit. Internal Audit function in the Bank is an independent activity and has sufficient standing and authority within the Bank. The Internal Audit Department, works under the guidance and supervision of the Audit Committee of the Board. Bank's Internal Audit Function works in close co-ordination with other Assurance functions i.e Risk Management Department & Compliance Department.

Bank's Central internal Audit Division operates through -18- Zonal Internal Audit Divisions to carry out internal Audit of Branches / offices as per the periodicity decided by RBIA Policy. All Branches, Centralized Units, Administrative Offices are covered under Risk Based Internal Audit. The summarized risk perception of all 8199 Branches & Specialized Integrated Treasury Branch as on 31st March 2023 are as under:

• Low Risk Branch - 7003 Branches (85.41 %)

• Medium Risk Branch - 937 Branches (11.42 %)

• High Risk Branch - 187 Branches (2.28 %)

• -72- Branches with no Rating (New Branches)

• Specialized Integrated Treasury Branch was in Low Risk.

Total -1285- Branches and other units are covered under Concurrent Audit covering Bank's 52.26 % Deposit, 78.05 % Advances & overall 62.92 % Business coverage. All Category B Branches, Currency Chests & Centralized Processing Cells are covered under Concurrent Audit.

Credit Audit is carried out of all Fresh Sanctions/ Existing Accounts including Retail Loans and Restructured Accounts with aggregate exposure of '10.00 Crores and above (FB + NFB) and 5% of borrower accounts are randomly selected from fresh Accounts and Reviewed with increase having aggregate exposure of '1.00 Crore above but below '10.00 Crores (FB + NFB).

All Bank's branches are subjected to Information System audits ("IS Audits") to assess the IT-related risks as part of the RBIA of the Branches. IS Audit of Data Center & IT Applications are also carried out periodically by a team of CISA /DISA qualified IS Auditors and external CERT-in Firms.

Few Key initiatives include the following:

• Revised framework of Concurrent Audit is implemented and Daily & weekly Report is introduced apart from existing Monthly Reporting.

• Audit Automation Software is implemented for Audit, tracking of Compliance & Dashboard.

• Centralized Exceptional Monitoring unit is established for ongoing monitoring of exceptions as per system data based on pre-defined logic under -66- parameters.

• Data Analytics team is established for offsite surveillance and data analysis as per different scenarios.

• -21- Point Roadmap is implemented during F.Y 2022

23 with objective to further strengthen Internal Audit, improve compliance culture and reduction in Persisting irregularities & Repeat Audit observations and ultimately achieve sustained compliance. Thrust is given on spot rectification during course of audit itself and total -371- Branches submitted spot CRC during F.Y 2022-23.

External Review of Internal Audit Framework is carried out by External Firm during the Year and as per their assessment Internal Audit Framework in Bank is robust and one of the best in peer Banks.

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 maintain asset quality, ensure Compliance of sanction terms and end use of funds. It has to ensure that the credit assets remain in regular category, endeavour made for upgrading asset quality of identified stressed accounts and take corrective action to prevent slippage of the accounts. 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 system 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 RFA/fraud in accounts (if any). This solution also enables the branches to closely monitor the 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 '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: 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/Book Debt statement, review pendency, insufficient/ no credit in CC accounts, inadequate margins in LABOD/ODBOD accounts etc. These triggers focused on 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 Audit: Credit Audit 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 as per sanction terms. This facilitates prompt corrective action, wherever required, without waiting for the regular Audit/ Inspection, which usually takes place with a time lag. Credit Audit is integrated with the core system Finacle to monitor it on realtime 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:

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

• The Bank has also digitized 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 analyzer for analyzing, tracking & monitoring the borrower's accounts periodically.

• Digital monitoring reports at pre-determined period are regularly evaluated & taken up for corrective measures wherever required in respect of big accounts of '1 crore & above.

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.

Vigilance setup at Zonal level conducts preventive audit of all branches at regular intervals and to act proactively on information controls the damage at bare minimum level.

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 programs 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 willful 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. Loan Document Manual has been revisited and simplified the documents.

Additionally, in the existing Advocate Portal, second phase with regard to assignment of work and reviewing advocates' performance are made available. In order to facilitate the faster process for vetting of loan and mortgage documents by Law Officers, the Department has recently launched on pilot basis an online vetting portal for 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.

Further, the Department has been promoting environment of knowledge sharing by issuing ‘Circulars', ‘Legal News Flash',etc. regarding ever changing set of laws, latest amendments and interpretation of laws by Courts affecting the Banking sector. In association with APEX Academy and a reputed Law Firm, initiated Training program for Law Officers to groom them in specific legal fields as well as to make them conversant with ever changing enactments, rules and regulations. Recently, we had also organized ‘Symposium' on the topic "Digital Journey in Banking-Legal and Business Challenges" with the aim to provide a platform for dialogue and discussion amongst banking and legal experts on the spectrum of changing laws and their materiality in the current market framework.

Apart from above we also succeeded in settling 211 Consumer cases pending at the various Consumer Forums under National Lok Adalat and ‘Grahak Madhystata Samadhan' organized by the National Legal Services Authority (NALSA). We are continuing our efforts to settle more number of consumer cases by sensitizing legal team at Regional/Zonal Office level.

Human Resources

Bank believes that our human resources are the biggest differentiator having a direct and significant impact on Bank's overall performance. The Bank has a talented workforce of more than 77,000 employees. Bank's HR has taken a number of initiatives for recruiting, strengthening and developing its human resources through various activities viz. recruitment of talent in highly specialized fields in order to tap the potential and garner higher business/revenue across various verticals & new business avenues and also to compensate the large number of superannuation; strengthening performance management system through Project SparshPlus, addressing training needs/ leadership development needs across the Bank through leadership development programs, coaching programs and capability building; succession planning and

health and wellness initiatives for the employees. These initiatives have resulted in increased level of employee engagement and productivity over the years.

The Bank has a history of setting the bar high when it comes to implementing fresh ideas and methods. The primary business facilitators are "PEOPLE," who are at the centre of all activities. The Bank has introduced a number of creative employee-centric initiatives as part of its organizational transformation projects, which focuses on people, processes, and systems. The Bank has also carried out initiatives to revamp important systems and procedures.

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' for the second time in a row by Great Place to Work Institute India. It is a gold standard recognition framework in assessing, enabling and recognizing work place culture in the organizations around the globe. Bank also won the most admired Best Bank Award in Talent and Workforce by BT-KPMG in Jan'23. With this certification, Bank has made a distinctive mark among Banks with best practices in Talent Management and Workforce in the country.

The following initiatives have been taken during the year which have had a direct and significant impact on Bank's performance:

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 2022 under which preventive health checkups and fitness drives were conducted. Online Yoga Classes for all employees during wellness month was organized at the Bank level. More than 200 activities like Health Checkup, Eye/Dental Checkup, Blood Donation Camp, Yoga/Zumba Camps, and Webinars by eminent health experts were also organized. 15,000+ staff members and 2800+ family members have been directly covered.

Bank's Annual Mandatory Health Check-up Scheme is for all permanent & confirmed employees and their spouses which facilitates to detect health issues before they start and enable to take timely prevention and cure with the right health services, screenings and treatments. Health Check-up is facilitated by tie-up hospitals/ diagnostic centers by Zonal Offices/ Regional Offices at local level and PAN India through service provider. Due to increase in the number of centers and awareness among employees regarding medical health check-up, the percentage of employees who have availed health check-up has increased tremendously from 25% in FY 22 to 42% in FY 23 with a rise of 17%.

Employee Assistance Programme

Bank has put in place ‘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 2023, 184 workshops were conducted to sensitize the employees on various aspects of mental, psychological and emotional wellbeing covering more than 13,000 employees. Focused ‘Emotional Quotient' (EQ) Workshops were conducted successfully for Branch Managers. The EQ workshops focused on various aspects with an aim to provide insights to the Branch Managers to resolve conflict effectively, adapt to changing business goals / circumstances and decision making. It also aimed to help in developing collaborative approach and effective communication. For the year 2023-24, a focused outreach program is planned in association with ‘EAP India' (the service provider), for the Joint Managers through workshops on the topic ‘From Stress to Strength: Using Emotional Intelligence to Thrive under Pressure'. More than 500 counselling sessions were conducted helping 468 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-2023' survey, the overall employee engagement score for the Bank stood at 75%.

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.

On the occasion of our Bank's 115th Foundation Day on or around 20th July 2022 and on the occasion of Republic Day Bank undertookthe following activities:

• Blood Donation - more than 15000 units of Blood

• Distribution of Saplings/ Tree Plantation - around 45000 saplings planted

• Cleanliness Drives - more than 2700 drives in various localities

• Distribution of materials and miscellaneous items to poor and needy - more than 90000 items

• Distribution of materials and miscellaneous items to old age homes, orphanages, disability centers etc. - more than 65000 items

• Conducting Health Check-up Camps - more than 5000 people were covered

Learning and Development

The Bank holds a strong belief in the significance of learning and development for nurturing its human capital. It boasts of a flexible and adaptable learning system that has been further strengthened by the pandemic. The Bank's swift response to the crisis has facilitated the establishment of a resilient digital training infrastructure that effectively addresses the employees' learning and developmental requirements.

More than 68,830 Bank's employees received training through the Apex Academy, 18 Zonal Academies, and 4 Baroda Satellite Learning Units, along with eLearning through Baroda Gurukul in this financial year, and help improving their performance.

In FY 2023, Bank has leveraged its Learning Management System (Baroda Gurukul) to facilitate learning and development across the Bank including overseas establishment, which has helped Bank to align training needs as per business goals and ensuring compliance across territories. Significant utilization of digital process and LMS platform helped Bank to impart learning to staff in timely manner and extending benefit of cost optimization to shareholders.

The Bank has been placing a strong emphasis on the acquisition of new age skills and IDP based training to enhance its human capital. In line with this, it has introduced simulation games that replicate real-life business scenarios to better educate its staff. To further enhance the learning experience, the Bank has adopted a blended learning approach that combines traditional and digital methods, with 365*24 availability.

In a collaborative effort to synergize external resources and promote a hybrid learning model, the Bank has partnered with prominent organizations such as AAFM, CRISIL, and NIIT to provide training to its Wealth Management Executives. This pilot phase will allow the Bank to refine its approach and fine-tune the training process to better serve the learning and development needs of its employees.

Overall, the Bank is committed to providing its employees with the necessary training and development opportunities to succeed in their roles and achieve their career aspirations.

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 has migrated Ex-Employee portal to HR Connect which is providing one stop solution for accessing various modules and facilities viz. Pension Pay Slip, PPO Generation, Family Pension Conversion, Tax Computation, Holiday Home Booking etc. Ex-Employees can also apply for TE/DA Claims online through HR Connect.

Reservation Cell

An exclusive cell has been functioning to monitor the reservation and other enabling provisions for employees belonging to Scheduled Castes (SC) /Scheduled Tribes (ST) / Person with Disabilities (PWD) /Ex-Serviceman (Ex-SM) and Other Backward Classes (OBC).

Executives in the rank of General Managers are appointed as Chief Liaison Officers for SC/ST/PWD & Ex-Serviceman employees and for OBC employees respectively who ensure compliance of various guidelines pertaining to them.

With effect from 1st February, 2019 reservation of 10% for Economically Weaker Sections (EWS) in 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 in a year, as per Government guidelines.

Caste category wise count as on March 31,2023
Cadre	Total	GEN	SC	ST	OBC	EWS
Officer	41837	19063	7362	3284	12118	10
Clerk	27328	11636	4501	2835	8274	82
Sub staff	7348	2217	2333	728	2070	0
Total	76513	32916	14196	6847	22462	92
% to total staff strength		43.02	18.55	8.95	29.36	0.12

Cadre	PwD	Ex-SM
Officer	1052	577
Clerk	1055	3055
Sub staff	164	598
Total	2271	4230
% to total staff strength	3.00%	5.53

Periodical Meetings: The Bank holds Quarterly 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.

School Tie-up for admission of Children of employees

Transfers and relocations are an inevitable part of banking career and every year employees in all cadres are transferred as per Bank's guidelines. Transfers involve relocation and one major challenge faced by employees upon transfer is to arrange for quality education for their children due to mid-academic year admissions, late admissions, change of school etc.

To ease out the inconvenience faced by the employees and to facilitate admissions of their children, Bank has entered into a tie-up arrangement with two renowned and reputed chain of schools having PAN India presence viz. ‘Ryan International Group of Institutions' and ‘VIBGYOR Group of Schools' in the current year. The classes offered are from Kindergarten to 12th Class. Children can also shift from one School to other without hassle as per Schools' transfer policy.

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 has also put in place a DEI Policy for promoting Diversity, Equity and Inclusion. 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 Check-up programme for women employees, establishment of Creche 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 PSBs in initiating 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 52.77 Cr images have already been scanned covering more than -7000- branches. Also, around -3.01- lac sq. ft. of space has been unlocked in identified Branches of Bank of Baroda. After successful implementation of Records Management System (RMS) / Document Management System (DMS) in Bank's Metro & Urban and identified branches 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

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

• Bank has Green Building Certificate GOLD rating for Baroda Corporate Centre and SILVER rating for Baroda Sun Tower Building (Corporate Office Buildings) through IGBC (Indian Green Building Council). Four of Bank's other buildings in India have green building rating.

• Waterless Urinals installed at BCC & BST in all washrooms, saving of approx. 7 lakh liters of water a year. The same is being implemented in other Administrative Offices in PAN India in phased manner.

• Around 175 branches in rural/semi urban areas are being run on Solar Energy, thereby reducing the consumption of power and carbon dioxide emissions. Approx 2400 tons of Carbon Dioxide Emission reduced as a result of using Green Energy/renewable/solar energy.

• All domestic branches have LED lights installed in the premises for reduction of energy.

• Bio-Gas Plant (capacity of 500 kg wet waste) is installed at Bank's building at BKC Mumbai which produces cooking gas that is used in Bank's canteen and organic manure is used in garden/lawns.

• All boundary lights in the Corporate Office Building, Mumbai are powered through Solar Energy with the help of Solar Tree, thereby adopting renewable energy sources.

Other initiatives

• Several Govt, directed schemes viz. Swachhata Pakhwada, Special Campaign 2.0 were organized efficiently.

• Cleanliness Campaign to ensure upkeep of Ambience of Branches are also being carried out on ongoing basis.

• High speed seamless Wifi facility has been provided to all staff members at Bank's important Building, i.e. BCC, BST & HO.

Implementation of Official Language (OL) Policy

Use of Hindi and other Indian Languages for promoting business as well as providing digital products to the customers is a significant characteristic of the Bank's language policy. This approach has been well appreciated by Government of India and regulatory authorities from time to time. 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 2022-23 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.

The Meetings of Central Official Language Implementation Committee, presided over by MD & CEO/ Executive Director of the Bank, were organized regularly on quarterly basis and various new initiatives were taken during the year FY 202223. Your Bank has made remarkable progress to provide Mobile Banking and transactional SMS services in Hindi and 11 other regional languages. Whatsapp Banking service and Internet Banking services are available to our customers in Hindi too. As a new initiative during the period under review, Bank's Chatbot facility, Digital lending platform, BCMS portal and BC knowledge portal have been made available in Hindi also. All the auto generated emails from various apps and digital channels/portals of the Bank and loan sanction letters containing terms and conditions generated through Bank's LLPS package have been made available in bilingual i.e. Hindi & English.

Under various initiatives taken during the year, your Bank organised an All India seminar on ‘Digital lending' in Amritsar wherein representatives from RBI, Public Sector Banks, Insurance companies and other Financial Institutes participated actively. The official language rating system for Branches/ offices and ‘Bhashayi Choupal' programs for staff members were continued in the Bank. 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 ‘Cyber-crime in Banking', ‘MSME Rin Maargdarshika' and ‘CASA Margdarshika' were published. Hindi Diwas, Vishwa Hindi Diwas and Matribhasha Diwas were celebrated at various offices/branches across India and overseas. Your Bank has also rolled out a Mobile app named ‘Bob Abhivykti 2.0' for all serving and retired staff members which provides online reading experience of all the magazines/ news letters/ house journals. This has proved to be an innovative idea of promoting go-green initiative.

With a view to boost implementation of Official Language in your Bank and to create awareness among the staff members about various e-tools facilitating them to work in Hindi and regional languages, a ‘Samarthya Toolkit/Branch Samarthya' (Technical Toolkit) was developed by the Bank and around 18643staff members were imparted training through508 programs during the period under review .Further ,various programs /competitions were also organized in Schools/ Colleges across the country to connect the young generation with your Bank which ultimately helped in mobilizing/

augmenting business .During FY ,2022-23 total 819 such programs were organized in which about 50411 students participated.

Your Bank‘s efforts earned accolades from Government of India from time to time .During the year ,your Bank was awarded with first Prize under" Rajbhasha Kirti Puraskar" scheme of Govt .of India for outstanding performance in the area of Official Language Implementation .Also ,Town Official Language Implementation Committee) TOLIC (functioning under the auspices of the Bank at Vadodara was selected for second Prize under the said scheme .Similarly ,TOLIC functioning under the auspices of the Bank at Rajkot were selected for awards by the respective regional implementation offices of Government of India .Our Zonal Office ,Bhopal and Regional Offices Surat City ,Goa and Chandigarh were also awarded by the respective regional implementation Offices of Government of India for outstanding performance in the area of Official Language Implementation.

Bank continued with its unique scheme" Medhavi Vidyarthi Samman Yojana "for popularising Hindi in 71 Universities of the country .Under this scheme ,cash prizes and commendation certificates are given to two meritorious students securing First and Second positions respectively in M.A) .Hindi (examinations every academic year.

With a view to popularize the novels written in Indian languages ,your Bank has instituted' Bank of Baroda Rashtrabhasha Samman ‘to honour the translators who have translated the novels written in Indian language to Hindi in order to make it available to mass readers.

Sustainability - ESG - An environmental friendly approach

The Bank recognizes the pressing importance of addressing climate change and acknowledges global warming as one of the most significant threats to businesses and communities worldwide .In recent times ,climate change risk has emerged as a critical challenge for the financial industry .In response, the Bank is deeply committed to minimizing the impact of climate change risk and actively working towards the sustainable development of its banking operations .Our objective is to achieve economic growth while ensuring the preservation of environmental and social ecosystems.

As a responsible policy measure, the Bank strictly adheres to guidelines that prohibit financing borrowers involved in the establishment of new units producing or consuming Ozone Depleting Substances (ODS). Similarly, small and medium-scale units engaged in the manufacturing of aerosol units using Chlorofluorocarbons (CFC) are not eligible for Bank financing. These measures align with our commitment to reducing the greenhouse effect and contribute to a more sustainable future.

To strengthen our commitment to sustainability ,the Bank has established the CSR and Sustainability Committee at the Board level .This committee plays a pivotal role in implementing sustainable strategies and integrating responsible Environment ,Social ,and Governance) ESG( practices throughout the organization .Furthermore ,a

dedicated core committee has been formed to provide operational support to the Board level committee in fulfilling its objectives effectively.

The Bank has implemented various initiatives to reduce emissions, conserve energy, and minimize water consumption. A key focus area has been the reduction of carbon emissions. Currently, around 175 branches located in rural and semi-urban areas are powered by solar energy, resulting in reduced power consumption and significant reductions in carbon dioxide emissions. Through the utilization of renewable energy sources, we have successfully eliminated approximately 2400 tons of carbon dioxide emissions. Additionally, the installation of LED lights in all 8200 branches has contributed to enhanced energy efficiency.

The Bank actively promotes sustainability awareness among the stakeholders and have organized initiatives such as Swachhata Pakhwada to foster a culture of sustainable living, environmental preservation ,and cleanliness .These efforts have engaged citizens in cleanliness drives at public parks, railway stations ,and beaches ,in addition to organizing health check-up camps .The Bank aims to inspire and encourage active participation in creating a cleaner and healthier environment.

The Bank places significant emphasis on technology- enabled banking through our platform" bobWorld ".This enables seamless and convenient banking operations for our customers while reducing paper usage for transactions and the need for physical visits to branches .The Bank has implemented a paperless approval process internally and has digitized the document management ,contributing to enhanced operational efficiency and reduced environmental impact.

As part of the Banks' commitment to environmental conservation, the Bank has initiated the "Plant a Tree Program." For every auto or home loan disbursed, the Bank plants a fruit-bearing tree on behalf of its customers.

The customers receive a Green Tree Plantation certificate that contains details of the tree planted on their behalf .Each tree is geotagged and secured using blockchain technology to ensure authenticity .Customers can track their planted tree online ,view its exact geolocation ,and even visit the tree personally using the provided coordinates. As of March 31, the Bank has planted over 1.5 lakh trees. Through this program ,we strive to make a positive impact on the environment while promoting a greener and healthier future for all .The Bank continually strive to integrate responsible practices ,reduce its carbon footprint ,and actively engage in initiatives that benefit our planet and society as a whole.

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 centers have conducted 22405 training programmes and imparted training to 6.22 lakh youth, out of which 4.24 lakh have already setup their own ventures or have secured wage employment. All the 64 RSETIs are 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 Centers (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 centers 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 114 Centers for Financial Literacy (CFLs) spread across 10 states and a Union Territory that are aimed at imparting financial literacy in tribal and backward blocks through innovative and participatory approach.

As a part of Bank's commitment towards protection of environment, under Environmental, Social, and Governance (ESG) principles, Bank has implemented planting a tree against each Auto loan/Housing loan disbursement. More than 1.50 lakh trees has been planted till 31.03.2023.

Bank has also donated to various social causes viz., financial assistance to deserving poor students for their undergraduation studies, donation of 2 distribution vehicles to NGO for providing mid-day meal to underprivileged and deprived children in government schools, installation of 11 CCTV cameras at sensitive locations in Gautam Buddh Nagar District, Uttar Pradesh for the public safety and security, donation of vehicle for highway patrolling and combing operations in forest, medical support project for curing Childhood Cancer.

Domestic Subsidiaries and Joint Ventures

BOB Financial Solutions Ltd.

BOB Financial Solutions Limited was established in 1994 as a Non-Banking Financial Company, wholly owned by the Bank. Its primary business is issuance of credit cards with its key differentiator being simple, easy-to-understand products that are fairly priced, efficiently serviced, and can easily be availed through a digital-all application process.

FY 2023 was a year of significant growth for BOB Financial. As per RBI data, the company grew much faster than the industry, both in terms of number of credit cards (76% vs. 16% for the industry) and spends (152% vs. 47% for the industry). The company emerged as the 8th largest issuer of credit cards in India for FY 2023.

• BOB Financial doubled the acquisition of new credit cards in FY 2023, by issuing close to 1.2 million credit cards (compared to 0.5 million credit cards issued in FY 2022). It consistently featured among the Top 10 issuers throughout the Financial Year

• Retail spends too, more than doubled compared to FY 2022, clocking approximately '17,300 crores (compared to '7,000 crores in FY 2022).

The company further cemented 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 including exclusive partnerships with Defence Forces (Army, Assam Rifles and Coast Guard), HPCL and Snapdeal. Within the BoB ecosystem, the company launched co-branded credit cards with Nainital Bank and the 3 Regional Rural Banks sponsored by Bank of Baroda. The Company also launched Vikram, a credit card for police and paramilitary personnel and Empower, a credit card for the self-employed customers.

The company launched multiple customer communication initiatives, both to encourage card usage, as well as enhance customer engagement. This was especially important in the light of regulatory mandates around activation of new cards and usage of vintage cards.

To evoke brand recognition & connect beyond the regular business reasons, a distinctive brand musical identity was launched and is now in use as background score for all branded video content

BOB Financial continued to invest in technology, to drive business growth and customer experience. A standalone Mobile App was launched to give complete control of their credit card on the cardholder's smartphone. And it was also integrated with BoB's bobWorld app, giving seamless access to BoB customers within the Bank's app itself.

Automation of various processes was another focus area. RBI mandate related processes, Risk categorization of customers, Re-KYC were some of the key processes automated during FY 2023. Implementation of Finance & Procurement modules powered by Oracle Fusion also began towards the end of FY 2023.

With focus on leveraging the Bank's distribution strength while building its own, BOB Financial continued to invest both in human resources as well as points of presence, to effectively align with all the Zones and Regions of Bank of Baroda.

Brief Highlights of BFSLfor FY 2023 are indicated below:

(Rs. in crore)

BOB Financial Solutions Ltd.
Particulars	FY 2022	FY 2023
Total Assets	1562.45	3,520.45
Net Profit/(Loss) for current FY	10.07	24.62
Net NPA levels for current FY	29.07	68.55
Credit rating	Crisil A1 +	Crisil A1 +
	India rating A1 +	India rating A1 +
Return on Assets	0.66%	0.71%

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 continued to receive good traction for its businesses during FY 2023 despite challenging market conditions. Investment banking team successfully closed several transactions across debt resolutions, debt syndication, DCM, M&A advisory and capital markets. Retail Equities business successfully launched a completely new revamped and customer friendly Trading Platform/ Application with seamless trading capabilities, comparable to the best in Industry. This resulted in significant increase in monthly client acquisition run rate from an average of 1,000 accounts per month last financial year to 11,000 accounts per month in recent months. Institutional broking revenue increased YoY despite drop in trading volumes across both the Equities and F&O segments of the Exchanges.

During the year, BOBCAPS received Depositary Participant license from SEBI. This will enable the Company to offer Demat services to its clients alongwith Trading Accounts to offer a seamless experience. BOBCAPS also entered into an alliance with Maybank Securities Pte. Ltd., Singapore for Foreign Institutional client's business. This will ensure BOBCAPS has presence in International market. These initiatives will augment new sources of the revenue for the company going forward.

Brief Highlights of BOB Capital Markets Ltd for FY 2023 are indicated below:

(Rs. in crore)

BOB Capital Markets Ltd
Particulars	FY 2022	FY 2023
Total Assets	187.97	179.34
Net Profit for current FY	7.72	1.25
Customer base (Nos)	35,191	1,00,929
Total number of branches	2	3

Baroda Global Shared Services Ltd.

Baroda Global Shared Services, a wholly owned subsidiary of the bank is outcome of a strategic decision made by the Bank in 2017. The intent was to integrate service functions into a single entity, thereby reducing service duplication and business unit silos, creating synergies and economies of scale. Bank has been able to achieve improved efficiency and substantial cost saving because of centralisation. Subsequent automation of various processes has resulted in freeing of workforce bandwidth at branches and providing an opportunity to focus on core activities. This set-up has enabled the Bank to focus more on sales and service function and contributing significant value by delivering on the crosssell initiatives for the Bank.

Basis successful set-up and scaling-up of centralised processing by BGSS, Bank reposed confidence in BGSS by leveraging its capabilities in new areas of sourcing loans and improving collection efficiency, thereby augmenting Bank's capacity.

In FY 2023, BGSS launched Digital Penetration, Rural & Agri Banking (DST) and Pimpri Chinchwad Municipal Corporation (PCMC) Tax Collection (Government Business) for the Bank. Further to aid Bank's Financial Inclusion objectives, BGSS has been empanelled as a Corporate Business Correspondent for the bank to deploy BC agents Pan-India (especially in semi-urban and rural areas).

The Shared Services entity also ensures that robust and stringent controls are in place through various internal and external assessments conducted from time-to-time, basis availability of data sets through common platforms. Some of the key achievements of BGSS are as follows:

1. Property tax collection through digital mode of INR 109 Cr. with over 26,800 transactions was executed across 17 zonal offices, an overall increase of 184% in the Pimpri Chinchwad Municipal Corporation (PCMC) Tax Collection business (Government business).

2. Within a span of 10 months, 1,258 BCAs were appointed along with 1440 KOIDs executed to further support BCs, thereby expanding the overall Financial Inclusion business.

3. In line with augmenting of digital banking, BOB World, Corporate Banking, B3 Account Opening and Inbound services have gone live. There has been a month-on- month improvement in conversion numbers for manual calling with a focus to shift branch walk-in customers to digital channels.

4. CPPCs (Central Pension Processing Center) operations of six states migrated to GIFT City.

5. BGSS is supporting bank in deploying new ATM machines - 4,500+ machines deployed.

6. Provided support to EDPMS team for marking 5,000 shipping bills as Director of Enforcement (DOE) in TRRACS portal (Regulatory Requirement).

7. With a focus on customer delight, BGSS has supported bank and helped setting-up an NR Operations Helpdesk which went live in January 2023 to extend end-to- end query resolution, complaints handling, feedback acknowledgement & suggestions for NRI/NRO customers.

8. 100% Target achieved for Mar'23 with 1,200+ Cr. business generated for DST products - Auto Loan, Home Loan, Education Loan and LAP

9. Evaluation of Cyber Security Incident Team (CSIRT) is complete; CSIRT plan is in place.

10. BOB World Orbit portal - an Online Public B2B e-commerce platform to carry out business activities. MVP (Minimum Viable Product) has been developed.

11. BGSS has delivered on Lean Six Sigma Project to improve the FTR% in Current Account Opening (Non-Individual) Process and achieved an efficiency gain in FTR % from 24.72% to 50%.

12. The annual CSAT survey was conducted in Dec'22 with 87% of the audience following in Excellent & Very Good category.

Barodasun Technologies Ltd.

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

The Company is yet to commence full-fledged operations and it is envisioned to initiate activities like programme / project management and support services to implement enterprisewide 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 167 branches as on March 31, 2023. The total business of NBL increased to '12,305 crore on March 31,2023 from '11,698 crore as on March 31, 2022. The Bank posted a net profit

of '46.30 crore in FY 2023 against a net profit of '28.93 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 from March 14, 2022 & became the subsidiary of the Bank.

Following the merger, the product range, AUM as well as share of equity to AUM has increased substantially with touch points in 140 towns and cities across India. During the FY 2022 -23 AMC grew faster than Industry. AAUM during Jan - March 23 quarter was '24,507 crores up 15% YoY compared to the industry growth of 6%.

In the FY 2022-23 company continued to expand its third- party distribution network 16% YoY, with particular focus on IFAs. The Company launched 4 new products successfully. This includes one equity fund - BBNPP Flexi Cap Fund, one hybrid fund - BBNPP Multi Asset Fund and two Passive Debt Index Funds - BBNPP NIFTY SDL December 2026 INDEX Fund and BBNPP NIFTY SDL December 2028 INDEX Fund.

Brief Highlights of Baroda BNP Paribas Asset Management India Pvt. Ltd for FY 23 are indicated below:

C in crore)

Baroda BNP Paribas Asset Management India Pvt. Ltd.
Particulars	FY 2022	FY 2023
Total Assets	200.24	187.36
Net Profit for current FY	(22.28)	(6.88)
Average Assets under Management (AAuM)	23,453*	26,436*
Equity to overall AAuM (%)	53%	56%

*Includes advisory AAuM of '2,060 crores in FY 21-22 and '1,929 crores in FY 22-23.

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 share capital of '1,433 Crores (including share premium). 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 investor.

In FY 2023, IndiaFirst Life registered YoY growth of 27% in Individual New Business APE (Annual Premium Equivalent). On Individual New Business APE basis, IndiaFirst Life's had a private market share of 2.5% and grew at 1.4 times the overall Life Insurance Industry (including LIC). This record of

growing at a faster rate than overall Industry has been upheld by IndiaFirst Life for last consecutive 9 years (since FY 201415). The company improved its ranking by 1 position to 10th in Individual New Business APE among the private peers as compared to last year and has assets under management (AUM) at '21,683 Crores as on 31st March 2023. IndiaFirst Life posted Net Profit of '76.25 crore for FY 2023, total Income of '7380 crore including total Premium Income of '6074 crore.

IndiaFirst Life was certified as a Great Place to Work (GPTW) for the fifth 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 fifth time in a row. The Company was also recognised among Best Brands of 2022 by The Economic Times

India Infradebt Ltd.

India Infradebt 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 of

'17,711 crores, Net Profit of '369 crores and Return on Equity of 14% during FY 2023. Infradebt has also been paying dividends continuously for the past six years.

A brief summary of Bank's all the domestic subsidiaries and JointVentures is given below:

(Rs. in crore)

Entity	Owned funds	Total assets	Net profit	Offices	Staff
BOB Financial Solutions Ltd	1009.52	3520.45	24.62	44	485
BOB Capital Markets Ltd.	161.29	179.34	1.25	3	106
Baroda Sun Technologies Limited	4.55	4.69	0.06	1	1
Baroda Global Shared Services Ltd.	39.55	56.50	9.50	4	5789
The Nainital Bank Ltd.	727.79	8656.67	46.30	171	1223
Baroda BNP Paribas Asset Management India Pvt. Ltd.	154.15	187.36	(6.88)	13	166
Baroda BNP Paribas Trustee India Pvt. Ltd.	0.25	0.38	0.01	1	1
IndiaFirst Life Insurance Company Ltd.	1069.00	22090.00	76.00	29	3,595
India Infradebt Limited	2781.30	19301.70	368.60	1	28

   

Bank of Baroda Company Background

Sanjiv Chadha

Incorporation Year	1908
Registered Office	Baroda House,Mandvi Vadodara,Gujarat-390006
Telephone	91-0265-2361724,Managing Director
Fax	91-0265-2361824
Company Secretary	Prashant K Agarwal
Auditor	R Devendra Kumar & Associates/Vyas & Vyas
Face Value	2
Market Lot	1
Listing	BSE,MSEI ,NSE,
Registrar	KFin Techologies Ltd Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Bank of Baroda Company Management

Director Name	Director Designation	Year
Prashant K Agarwal	Company Secretary	2023
Sanjiv Chadha	Managing Director & CEO	2023
Ajay K Khurana	Executive Director	2023
Debadatta Chand	Executive Director	2023
Parvathy V Sundaram	Director	2023
Alok Vajpeyi	Director (Shareholder)	2023
Joydeep Dutta Roy	Executive Director	2023
Ajay SInghal	Non Official Director	2023
Lalit Tyagi	Executive Director	2023
Mukesh Kumar Bansal	Nominee (Govt)	2023

Bank of Baroda Listing Information

Listing Information
BSE_500
BSE_100
BSE_200
BSEDOLLEX
BSE_PSU
NIFTYJR
CNX500
BSEBANKEX
BANKNIFTY
CNX100
PSUBANK
CNX200
CNXDIVIDEN
BSECARBONE
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEFINANCE
SENSNEXT50
BSEBHARA22
LMI250
BSEEVI
BSE100LTMC
NFTYLM250
NFTY100ESG
NF500M5025
NFTYTOTMKT

Bank of Baroda Finished Product

Product Name	Unit	Installed Capacity	Production Quantity	Sales Quantity	Sales Value
Interest/Discount on Adv/Bills	Rs.	0	0	0	64073.4891
Income on Investments	Rs.	0	0	0	22155.9959
Others	Rs.	0	0	0	1921.6419
Interest on bal with RBI	Rs.	0	0	0	1437.4138