Bank of baroda

BANK OF BARODA
Progress
We have begun installing leased lines connecting 1,000 of our branches to our network and we believe the task is likely
to be completed during this year. The preparation of infrastructure at 28 network aggregation points is in the final stages
of completion. Our centralised data centre spread over an area of 8,000 square feet was commissioned on December 10,
2005 as a stepping stone towards CBS. The first pilot branch under CBS is scheduled to be rolled out in December 2005.
With respect to CBS implementation:
80 members of the CBS implementation team have completed their initial 11-week training.in two branches. Another
40 officers are currently undergoing this training;
An eight member project team has been trained in the operation of the e-channel solution which will be implemented
in conjunction with CBS; and
Both HP and our information technology team have completed a detailed system study and a project management
plan is being created by us in consultation with HP.
In addition, we have also begun implementing the enterprise general ledger, HRMS, payroll applications, RTGS, Credit
Risk Management application and the Anti Money Laundering solution associated with the technology enabled business
transformation project. Dedicated teams for all the applications have been identified and are currently being trained by
HP. Given the critical significance of introducing risk management solutions and the time frame for compliance with Basel
II norms we have accelerated the date for the implementation of the credit risk management solution to be established in
conjunction with the project
The project, currently running to its implementation and roll-out schedule, is on its way to establish a robust technology
platform for us.
Risk Management
The management of risk is a major determinant of success in all multinational business and we place particular attention
to actively managing and controlling our risk exposures. In the financial services industry, the three main risk exposures
we face are credit risk, market risk and operational risk. For all of these risks, we have devised and implemented policies,
procedures, organizational structures and control systems for their identification, measurement, monitoring and control.
These systems are not static but are flexible enough to allow our procedures to be modified in accordance with changes
in our risk profile.
Since October 2001, we have implemented an internal risk management system headed by one of our General Managers,
which has evolved into a sophisticated and effective risk management tool for our business whereby overall responsibility
for management of risks rests with a Sub-Committee of our Board. Further, we have in place a Credit Policy Committee,
Asset Liability Management Committee and Operational Risk Management Committee, all of which comprise experienced
Senior General Managers to formulate and implement various risk strategies. Reporting to each of these committees is a
range of cells that identify, measure, monitor and attempt to control risks within prescribed limits.