Final

Presentation
On Comparative Study Of
Bank’s Retail Loan Product
At
Bank Of Baroda
 COMPANY PROFILE
• Founded - 20 July 1908
• Headquarters -Vadodara
• Key people - Ravi Venkatesan (Chairman) P.S. Jayakumar (CEO&MD)
• Industry - Banking
• Products - Financial Services
• Employees - 52420
• Branches - 5478 (India) - 585 (Rajasthan)
• Owner - Government of India
• Website - www.bankofbaroda.com
• Tagline - India’s International Bank
 INTRODUCTION
• Retail finance or retail lending is that segment of retail banking which offers various
loan products to the customers. Housing loans, loan for the purchase of durables,
auto loans, credit cards and educational loans are the typical products offered in
Indian retail finance segment.
• Bank of Baroda is the second-largest bank in India, after  State Bank of India.
• Bank of Baroda offers a wide range of retail loans whether the need is for a new house,
child's education, purchase of a new car or home appliances, our unique and need specific
loans .
 OBJECTIVE OF THE
STUDY
• The main objective of this study is to analyze different types of home
loans and education loans offered by Bank of Baroda and also identify the
competitive advantage of Bank of Baroda over its competitors and peer
banks in retail loan segment in India.
• This study also covers the recent transformations taken place in retail
loan segment in recent past in both Public sector and Private sector
financial institutions in India.
 RESEARCH
METHODOLOGY
•  A science of studying how research is done scientifically
• A way to systematically solve the research problem by logically adopting
various steps •
• Methodology helps to understand not only the products of scientific
inquiry but the process itself
• Aims to describe and analyze methods, throw light on their limitations
and resources, clarify their presuppositions and consequences, relating
their potentialities to the twilight zone at the ‘frontiers of knowledge’
 ANALYSIS AND
INTERPRETATION
 
• Data analysis involves converting a series of recorded observation (data)
into descriptive statements (information). The Analysis will be showed
with the help of a tables.
 CONCLUSION
Banker’s View
• The main businesses of bank is accepting deposits with low interest rates & lend
it on high interest rate and enjoy the variation for long period of time.
• Maximum interest rate will help the bank, but it will not attract customer to earn
the interest for long period. Retail Lending in term of home loans, education loans
is more reliable to gain constant interest for long period of time and the recovery
will be more. Maximum fund will be disbursed and will have less risk rather than
other loans, which are in short term and high interest rate schemes.
• Among banking sector, Bank of Baroda & SBI will enjoy long term benefit & other
may have problem in future course. The number of customers that banks are
chosen for retail loans are salaried employee in which it reduces the risk involved
in recoveries
 CONCLUSION
Customer’s View
• In terms of Home loan, SBI is better because of its wide variety of products and low
interest rates. Whereas, Bank of Baroda is trying to provide better products and services
by providing concession in interest rates to govt. and preferred organization employees.
• Bank of Baroda bank sanction loan within short time period with respect to other
Nationalized banks.
• Nationalized banks takes maximum time for processing loan application.
• In co-op. banks loan will be sanctioned but it depends upon the relation with banking
personnel & member of the banks.
• The very important benefit that the customer getting is tax benefit. Home loans are the
only loan product which Government Of India have given relief & tax deduction up to
Rs1,50,000 p.a. for the income tax payee.
 RECOMMENDATIONS
•Interest rate, processing fees, tenure, security and margin money-all these are important in all
kinds of retail loans - housing loans, education loans, auto loans, personal loans etc. So bank
should revise all above keeping in view of all other banks. Bank should appoint some marketing
executive for this purpose who can give information of market and other banks, revision of loan
timely so that the bank can revise it very soon. These marketing executives should give report
to Head Office directly for timely processing, so that the market can be fully captured as early
as possible 
•Limit of loan amount of all retail loans should keep increasing keeping in view of private sector
banks and other nationalized banks. 
•One of the major strengths of Bank of Baroda is timely processing of loan application. So, it
must keep on processing the loan application as soon as possible.
•The major competitor to Bank of Baroda in Home Loan category is State Bank of India. In order
to compete with SBI, Bank of Baroda must introduce attractive schemes in home loan category
and must also adjust the interest rate that makes a major difference. 
• In Education Loan category, Punjab National Bank is a major competitor
to Bank of Baroda in Northern part of India. Bank of Baroda has a good
portfolio in educational loan category, but it is not successful in utilizing
this advantage. It has to promote its products well in the market in
order to can gain advantage over Punjab National Bank.
• Bank of Baroda should not only attract salaried people but also the
businessmen and contractors where more money will be disbursed and
may enjoy large rate of interest. 
• Bank must adopt new methodology for recovering balances. 
• Bank needs to identify and select the sectors in which the funds are
invested in large and for long time period such as Home Loan.
 
 Thanking You

Presented By-
Pragya
Singh
MBA 3rd
Sem