Bank of baroda

Compensation, Rewards and Staff Welfare
The salaries and benefits payable to our employees are in terms of the industry level bipartitie settlement between the
employee/workmen unions and the IBA. The present industry wage and salary settlement covering employees in public
sector banks was signed on June 2, 2005 covering the period November 2002-2007.
We have performance-linked incentive packages for our employees. We also provide welfare benefits to our employees
such as financial assistance in times of need, loans to assist payment of health-related expenses reimbursement of
medical expenses, academic scholarships for dependents of staff and holiday homes.
Competition
We face competition in all of our main business areas. Our primary competitors are other large public sector banks, new
private sector banks and foreign banks.
Commercial Banking
Our principal competitors in wholesale banking are public and new private sector banks as well as foreign banks. In
commercial banking, the large public sector banks have traditionally been the market leaders, with the focus of foreign
banks being multinational companies and Indian corporations with cross-border financing requirements including trade,
transactional and foreign exchange services. In contrast, large public sector banks have established extensive branch
networks and large local currency funding capabilities.
Retail Banking
In retail banking, our principal competitors are the large public sector banks, as well as existing and new private sector
banks and foreign banks who offer retail loan products. Other public sector banks like us have large deposit bases and
extensive branch networks, including the State Bank of India Group which has over 13,500 branches. Although foreign
banks have a small market penetration, they have a significant presence among non-resident Indians and also compete
for non-branch based products such as auto loans and credit cards. Private sector and foreign banks compete through a
wider product range offering and greater technological sophistication.
In particular, we face significant competition primarily from private sector banks and to a lesser degree from other public
sector banks, in the housing, auto and personal loan segments.