Bank of baroda

BANK OF BARODA
Reserve Bank of India
RBI is the central banking and monetary authority in India. RBI manages the country’s money supply and foreign
exchange and also serves as a bank for the GoI and for the country’s commercial banks. In addition to these traditional
central banking roles, RBI undertakes certain developmental and promotional activities.
RBI issues guidelines, notifications and circulars on various areas, including exposure standards, income recognition,
asset classification, provisioning for non-performing assets, investment valuation and capital adequacy standards for
commercial banks, long-term lending institutions and non-banking finance companies. RBI requires these institutions to
furnish information relating to their businesses to RBI on a regular basis.
Commercial Banks
Commercial banks in India have traditionally focused on meeting the short-term financial needs of industry, trade and
agriculture. At the end of March 2005 there were 284 scheduled commercial banks and four non-scheduled commercial
banks in the country, with a network of 68,116 branches. Scheduled commercial banks are banks that are listed in the
second schedule to the RBI Act, and may further be classified as public sector banks, private sector banks and foreign
banks. Industrial Development Bank of India was converted into a banking company by the name of Industrial Development
Bank of India Limited with effect from October 2004 and is a scheduled commercial bank. Scheduled commercial banks
have a presence throughout India, with nearly 69.49% of bank branches located in rural or semi-urban areas of the
country. A large number of these branches belong to the public sector banks.
Public Sector Banks
Public sector banks make up the largest category of banks in the Indian banking system. There are 28 public sector
banks in India. They include the SBI and its associate banks and 20 nationalised banks. Nationalised banks are governed
by the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 and 1980. The banks nationalised under
the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 and 1980 are referred to as ‘corresponding
new banks’.
Bank of Baroda is a corresponding new bank, nationalised in 1969 under the Bank Acquisition Act. At the end of March
2005, public sector banks had 47,320 branches and accounted for 74.00% of the aggregate deposits and 70.47% of the
outstanding gross bank credit of the scheduled commercial banks.