Chapter - 1

EXECUTIVE SUMMARY

This report concentrates on the work that has been done during the internship period at
Bank of Baroda, Charkop Branch, Kandivali west, Mumbai. It highlights the manner in
which Wealth Management is done in Bank of Baroda and comparative study of various
alternatives available in the market for wealth management.
Bank of Baroda is the second largest public sector bank in India after State Bank of
India. It offers a wide range of banking products and financial services to its corporate and
retail customers through its branches and through its specialized subsidiaries and affiliates.
Bank of Baroda Wealth Management provides discretionary wealth management service, in
which wealth managers give recommendations to customers and invest according to customer
discretion.
Further an attempt has been made to understand key elements of wealth
management Services and how wealth management has developed as an emerging sector. The
project aims to study different wealth management products provided by Bank of Baroda to
its customers. The project analyzes and compares various services provided by different
wealth management institutions in India.
A survey was conducted in order to get branches feedback on current scenario of
wealth management in Bank of Baroda and a survey for customers feedback on the various
wealth management services used by them and how much satisfied are they using the services
provided by Bank of Baroda.
The data is been collected from two sources- Primary and secondary. The primary data
is collected from various Branches in Mumbai suburb including Charkop Branch & secondary
data collected from the official record on the bank and other documents like books, journals,
Website, etc.

Chapter - 2
INTRODUCTION

2.1

INTRODUCTION TO BANKING INDUSTRY IN INDIA

Banking in India in modern sense originated in the last decades of the 18th century.
The first banks were Bank of Hindustan (1770-1829) and The General Bank of India,
established 1786 and since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank
of Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from
the British East India Company. The three banks merged in 1921 to form the Imperial Bank of
India, which, upon India's independence, became the State Bank of India in 1955. For many
years the presidency banks acted as quasi-central banks, as did their successors, until
the Reserve Bank of India was established in 1935.
In 1969 the Indian government nationalized all the major banks that it did not already
own and these have remained under government ownership. They are run under a structure
known as 'profit-making public sector undertaking' (PSU) and are allowed to compete and
operate as commercial banks. The Indian banking sector is made up of four types of banks, as
well as the PSUs and the state banks, they have been joined since the 1990s by new private
commercial banks and a number of foreign banks.
Banking in India was generally fairly mature in terms of supply, product range and
reach-even though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India
expanding its branch network and through the National Bank for Agriculture and Rural
Development with focus on microfinance.

2.1.1

STRUCTURE OF THE INDIAN BANKING INDUSTRY:

Scheduled Banks in India constitute those banks which have been included in the second
schedule of RBI act 1934. Scheduled banks comprise scheduled commercial banks and
scheduled co-operative banks.
Public sector banks are those in which the majority stake is held by the Government of India.
Public sector banks together make up the largest category in the Indian banking system. There
are currently 26 public sector banks in India. They include the SBI and its 5 associate banks,
19 nationalized banks and IDBI Bank Ltd.
Private Sector Banks have the majority of share capital held by private individuals and
corporate. These are the major players in the Banking sector as well as in the expansion of
business activities.

Foreign Banks are those banks which have their registered head offices in foreign country,
but operate their branches in India. The primary activity of most foreign bank has been in the
corporate segment.
Regional Rural Banks (RRBs) were established during 1976-1987 with a view to develop
the rural economy. Each RRB is owned jointly by the Central Government, concerned State
Government and a sponsoring public sector commercial bank.
Co-operative Banking sector is the oldest segment of the Indian banking system. The rural
co-operative banks comprise State co-operative banks, district co-operative banks, SCARDBs
and PCARDBs.
Non Scheduled banks form a very small component of Local Area Banks (LABs), which
play an important role in financial inclusion process.

2.1.2

SEGMENTS COVERED BY BANKS:

In earlier times Banks were used only a place to park surpluses. Now due to rapid

competition and customer preferences, banks have started undertaking many activities and
have become one stop service providers for customers convenience.

Risk Management
Retail Banking
Investment Banking
Wholesale Banking
Treasury
Wealth Management
Corporate Banking
Depository
Cards
Banking Operations

2.2

INTRODUCTION TO WEALTH MANAGEMENT INDUSTRY

2.2.1

WEALTH MANAGEMENT GLOBALLY

From 2008 to 2013 wealth grew fastest in the Asia-Pacific region. Across all regions,
the growth of both the high net worth and ultra high net worth customer segments outpaced
that of the mass market and mass affluent segments. By 2016, total wealth in Asia-pacific is
predicted to be US $116.8 trillion and to have surpassed that of Europe (US $110.4 trillion).
The global HNWI population is 12 million and HNWI wealth is $48.5 trillion
(2013).The Worlds Wealth report states that in 2008 there were 8.6 million HNWIs
worldwide, a decline of 14.9% from 2007. The total HNWI wealth worldwide totaled
US$32.8 trillion, a 19.5% decrease from 2007.
The ultra-HNWIs experienced the greater loss, losing 24.6% in population size and
23.9% in accumulated wealth. The report revised its 2007 projections that HNWI financial
wealth would reach US$59.1 trillion by 2012 and revised this downward to a 2013 HNWI
wealth valued at $48.5 trillion advancing at an annual rate of 8.1%.Total Asset Under
Management in 2012 is a total of $64 trillion, representing a compound annual growth rate
(CAGR) of nearly 6 percent, which is estimated to grow to $102 trillion by 2020Major
competitors in wealth management industry globally are UBS, Bank of America (parent
company of Merrill lynch),Wells Fargo, Credit Suisse, JPMorgan Chase, Morgan Stanley,
HSBC, Deutsche Bank, Barclays, BNP Paribas.

2.2.2

WEALTH MANAGEMENT IN INDIA

Before the advent of liberalization in India wealth was concentrated in few hands.
After 1991, when the Narasimha Rao Government introduced liberalization it lead to wealth
creation from private enterprises.
Wealth Management is one of the fastest growing disciplines of the banking sector and
with a GDP growth rate hovering around the 9% , 175,000 millionaire households and a
strong future outlook, Indias growth story is making it an increasingly attractive market for
wealth management firms. This trend is expected to continue, with India estimated to become
the third largest global economy by 2030.
Indias market is fragmented, with organized sector (independent firms, banks,
brokers) battling unorganized sector (private advisors, CAs)
The 21st century in India saw a spell of entrepreneurial ventures which has created an
ever growing High Net worth Individuals or HNWIs. India has more billionaires than Japan.
5

In India, 1000+ house-holds with USD 30 Million or above, 2,50,000+ house-holds with USD
1 Million or above.25 Private Banks with around 15000 Wealth Manager targeting this big
chunk of Wealthy Indians. Only 5% of High Net Worth Individuals are tapped by the Indian
Wealth Management Industry. HNWIs consist of 8% of the total wealthy households but
constitute around 45% of the total wealth.
Among the total HNWIs in India, only 20% of the HNWI take advice from the
financial advisors. Advisory asset management and Tax planning is the most demanding
among HNWIs followed by Financial Planning Investment in Fixed income products accounts
for maximum percentage of HNWI investment in various investment products. Business
income contributes the maximum (39%) wealth for HNWIs in India and requires solutions
which can help to protect wealth and risk mitigation. The majority (69%) of the HNWI
population lies in the age group of 30-55 and they prefer wealth accumulation, and risk
mitigation and require sophisticated products which can offer high returns in a short period of
time.
Indias HNWIs wealth will grow by a CAGR of 12% and it will reach close to $949
billion by 2015.Preferred savings instruments of Indian as of now is Real Estate and Gold.
Both of these have their own problems and sooner or later Indians would become more
agreeable to Capital Market Investment Instruments.

2.2.3

THE EVOLUTION OF WEALTH MANAGEMENT MARKET IN INDIA

In the early 1990s, the economic reforms started by the Indian

government to attract foreign investment created a lot of opportunities for
entrepreneurs, And because of the GDP growth of 7% to 8% in the earlier
years, and then a bit higher more recently, a huge amount of wealth has
been created for a lot of people.
More specifically, after around 1999 / 2000, on the back of the new service
economy and IT boom, a lot more wealth got created and the nature of
wealthy individuals changed. So rather than there only being wealth in the
form of old money, a lot of new wealth led to the development of more
formal wealth management offerings in India.
Wealth management in India was historically conducted in a
relatively dis-organised way with accountants, lawyers and other trusted
adviser providing the advice, rather than private bankers. The
formal wealth management industry is therefore only really about 10 to 12
years old
Until 2003, banks only really focused on deposit-taking, but then
slowly foreign banks introduced more formal wealth management offerings

and began to scale those businesses. The more formal wealth

management landscape began with banks selling mutual funds
and insurance products to their customers
And then as capital markets started to take off in 2004 and 2005, the main
thrust behind the industrys growth began. Since then, everyone wants to
have a piece of the Indian wealth market from foreign banks to Indian
non-banking brokerages to traditional domestic banks and also
independent financial advisers.
Since then it has developed into an industry where a large variety of
products is distributed by third-party banks, with what as the advisory
component of wealth management only really being minimal both in
terms of what is offered to clients, as well as part of the revenue stream.

2.2.4 COMPETITIVE PLAYERS OF WEALTH MANAGEMENT IN INDIA

The competitive rivalry is increasing in the wealth management sector in India as the
existing players are expanding and diversifying their operations where as there are new local
and global players wanting to make a stand here. As of now this industry is fragmented with
lot number of brokers, sub-brokers, financial advisers, insurance and tax consultants.
Financial institutions like Reliance Money, Aditya Birla Group provide these services. Private
banking divisions of popular lenders such as Barclays, Deustche Bank, ICICI Bank, HSBC
and Kotak Mahindra are already well established in this segment. Customers can also opt for
public sector banks such as Indian Bank, Canara Bank and State Bank of India for availing
wealth management services.
The entry of public sector banks in the wealth management domain cannot be
neglected. They possess prodigious brand equity, influence, corporate affiliations which can
prove as a tough competitor for the existing players.

2.3

INTRODUCTION TO BANK OF BARODA

On 20th July 1908, under the Companies Act of 1897, and with a paid up capital of Rs
10 Lacs started the legend that has now translated into a strong, trustworthy financial
body, THE BANK OF BARODA.
The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a bank of
this nature will prove a beneficial agency for lending, transmission, and deposit of money and
will be a powerful factor in the development of art, industries and commerce of the State and
adjoining territories."

2.3.1

MISSION STATEMENT

To be a top ranking National Bank of International Standards committed to

augmenting stake holders' value through concern, care and competence.

2.3.2

ABOUT THE BANK

Bank of Baroda (BoB) is an Indian state-owned banking and financial

services company headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.
Shri S.S. Mundra is the Chairman and Managing Director of Bank of Baroda since
21st January, 2013.It is the second-largest bank in India, after State Bank of India, and offers a
range of banking products and financial services to corporate and retail customers through its
branches and through its specialized subsidiaries and affiliates. Its corporate headquarters is in
the Bandra Kurla Complex in Mumbai.

Bank of Baroda has 4873 branches in India , 93 branches overseas , 13 zonal offices
and 56 regional offices with employee base of 42215 as on 2014.The bank, along with 13
other major commercial banks of India, was nationalized on 19 July 1969, by the
Government and has been designated as a profit-making public sector undertaking (PSU).
Bank of Baroda is one of the Big Four banks of India, along with State Bank of
India, ICICI Bank and Punjab National Bank.

2.3.3

PRODUCTS AND SERVICES

Bank of Baroda offers a wide range of products and services:

Deposit Products-Fixed , Current ,Savings ,Recurring, Baroda First Wealth Pack.

Loan Products-For Education, Business , Individuals ,Traders , NRIs etc

Wealth Management Products-Insurance products , Mutual Fund Products , ASBA.

Central Pension Processing Centre (CPPC)

Government Business
Apart from rendering all other Personal banking services to its customers/public, Bank
of Baroda also works as Agency Bank for undertaking various types of Govt. Business
viz.
Govt. Deposit Schemes/Bonds
Pension Payment Business
Collection of Central/State Taxes
Services to Civil/Non-Civil Ministries

Baroda Gift Cards, Prepaid Cards, ATM cards , Debit cards and Credit cards.

Facilities like Internet Banking, Mobile Banking , RTGS and NEFT and E-broking.

Facility to Book Rail Tickets, Baroda easy pay, Baroda eshoppe , Baroda Instapay ,
Payment Gateway, Making donation online , Online loan application and tracking.

E-Lobby and Branch locators are Provided.

Bank of Baroda operates in Treasury-Domestic and FOREX

International Operations- FGN Currency Credits ,External Commercial Borrowings

( ECB) ,FCNR (B) Loans ,Export Finance, Import Finance, Correspondent Banking
, Trade Finance and International Treasury.

Bank of Baroda offers various NRI services and does business in Retail banking,
Wholesale Banking ,Rural Agriculture Banking , SME Banking.

2.3.4

INITIATIVES

The initiatives include setting up of specialized NRI Branches, Gen-Next Branches

and Retail Loan Factories/ SME Loan Factories with an assembly line approach of processing
loans for speedy disbursal of loans.

The major ongoing initiatives of the Bank are detailed below:

Business Process Reengineering (BPR)
Bank had initiated a major Business Process Reengineering to give a big boost to sales
growth by enhancing customer satisfaction and by making possible alternate channel
migration thus reinventing itself to challenges of the 21st century. Banks BPR project known
as Project- Navnirmaan has altogether 18 activities covering both the BPR and
organizational restructuring, aimed at transforming the Banks branches into modern sales &
service outlets.
The most important initiatives planned under this project include

10

(1) Conversion of all metro and urban branches into modern centres known as Baroda
Next branches.
(2) Creation of Automated and Leaner Back Offices like City Back Office (for
automated cheque processing etc), Regional Back Office (for faster account opening etc),
Establishment of two Call Centres, Creation of Academy of Excellence, Introduction of
Frontline Automation at select branches for customer convenience and Organizational
Restructuring.
Peoples Initiatives
Bank is endowed with a competent and motivated employee base which is engaged in
handling the extensive business operations of the Bank across the globe. Strategic HR
interventions like, according cross border and cross cultural work exposure to its managers,
hiring diverse functional specialists to support line functionaries and complementing the
technical competencies of its people by imparting conceptual, managerial and leadership
skills, gave the Bank competitive advantage. People initiatives were blended with IR
initiatives to create an effectively harmonious workplace, where everyone prospered.

New Technology Platform

Bank has made substantial progress in its end-to-end business and IT strategy project
covering the Banks domestic, overseas and subsidiary operations. All Branches, Extension
Counters in India, overseas business and five sponsored Regional Rural Banks are on the Core
Banking Solution (CBS) platform.
Bank has been providing to its customers Internet Banking, viz., Baroda Connect and
other facilities such as online payment of direct and indirect taxes and certain State
Government taxes, utility bills, rail tickets, online shopping, donation to temples and
institutional fee payment. Bank has a wide network of ATMs across the country and has also
launched mobile ATMs in select cities.
Initiatives have been taken to provide corporate customers with facilities like direct
salary upload, trade finance and State Tax payments etc. Bank has introduced Mobile Banking
(Baroda M-connect) and prepaid gift cards.

Marketing Initiatives
Ever since its rebranding in 2005, Bank has consistently promoted its major strengths
viz. large international presence; technological advancement and superior customer service
etc. Bank had introduced the sub brand BARODA NEXT-State of the Art-Straight from the

11

Heart to showcase how it has utilized technology to nurture long term relationships for
superior customer experience.
The sub brand has been reinforced by alternate delivery channels such as internet
banking, ATMs, mobile banking etc and robust delivery outfits like Retail Loan Factories,
SME Loan Factories, City Sales Office etc. Banks constant endeavor to strengthen its
branch/ATM network combined with well informed staff offering personalized service at its
various touch points have enhanced customer interactions and satisfaction. Thus the Bank has
firmly positioned itself as a technologically advanced customer-centric bank.

Corporate Social Responsibility (CSR) Initiatives

Bank has always upheld inclusive growth high on its agenda. Bank has established 36
Baroda Swarojgar Vikas Sansthan (Baroda R-SETI) for imparting training to unemployed
youth, free of cost for gainful self employment & entrepreneurship skill development and 52
Baroda Gramin Paramarsh Kendra and for knowledge sharing, problem solving and credit
counseling for rural masses across the country, as on 31.03.2011. Bank has also established 18
Financial Literacy and Credit Counseling Centres (FLCC) in order to spread awareness
among the rural masses on various financial and banking services and to speed up the process
of Financial Inclusion, as on 31.03.2011.

2.3.5 PERFORMANCE HIGHLIGHTS OF THE YEAR 2014

Total Business (Deposit+Advances) increased to Rs 9,65,900 crore reflecting a growth

of 20.43% (y-o-y).

Gross Profit and Net Profit were Rs 9,291 crore and Rs 4,541 crore respectively.
Net Profit registered a growth of 1.35% over the previous year.

Credit-Deposit Ratio stood at 86.15% as against 82.03% last year.

Retail Credit posted a growth of 20.96% constituting 16.6% of your Banks

Gross Domestic Credit in FY14.

12

MSME Credit posted a growth of 21.21% constituting 20.3% of your Banks

Gross Domestic Credit in FY14.

Net Interest Margin (NIM) as per cent of interest earning assets in global operations
was at the level of 2.36% and in domestic operations at 2.87% during FY14.

Capital Adequacy Ratio (CAR) as per Basel II stood at 12.87%.

Capital Adequacy Ratio (CAR) as per Basel III stood at 12.28%

Net Worth improved to Rs 34,933 crore registering a rise of 13.7%.

Book Value improved from Rs 729.11 to Rs 813.50 on year.

Business per Employee moved up from Rs 1,689 lakh to Rs1,865 lakh on year.

2.3.6

SUBSIDIARIES AND JOINT VENTURES

BOB Capital Markets (BOBCAPS):

is a SEBI-registered investment banking company based in Mumbai, Maharashtra. It is a
wholly owned subsidiary of Bank of Baroda. Its financial services portfolio includes initial
public offerings, private placement of debts, corporate restructuring, business valuation,
mergers and acquisition, project appraisal, loan syndication, institutional equity research, and
brokerage.

BOBCARDS Ltd.:
Bobcards Ltd is a credit card company, 100% subsidiary of Bank of Baroda , one among the
pioneers in Indian card market. The company is in the business of Credit cards And Point of
sale (POS) Acquiring. Bank of Baroda had introduced its first charged card

13

named BOBCARD in the year 1984. The whole operation of this plastic card was managed by
Credit card division of Bank of Baroda. BOBCARDS has over 6000 Electronic Data Capture
(EDC) terminals all over India.
The various products, which are marketed by BOBCARDS are namely BOBCARD Corporate
Global, GOLD Visa, GOLD MasterCard,EXCLUSIVE (General, Youth & Woman), SILVER,
PLATINUM, SIGNATURE. These card products has been launched keeping in view the
different need of different people.
Nainital Bank Ltd:
Bank has its Head Office at Nainital, Uttarakhand and Three Regional Office's, one each at
New Delhi, Haldwani & Dehradun. The delegation of powers is decentralized upto the branch
level to facilitate quick decision making.
Associates:
Baroda Pioneer Asset Management Company Ltd
India First Life Insurance Company Limited
Baroda Uttar Pradesh Gramin Bank
Baroda Rajasthan Gramin Bank
Baroda Gujarat Gramin Bank
Nanital -Almora Kshetriya Gramin Bank
Jhabua-Dhar Kshetriya Gramin Bank

Overseas Subsidiary:
Bank of Baroda (Botswana) Ltd.
Bank of Baroda (Kenya) Ltd.
Bank of Baroda (Uganda) Ltd.
Bank of Baroda (Guyana) Ltd.
Bank of Baroda (New Zealand) Ltd
Bank of Baroda (Tanzania) Ltd
Bank of Baroda (Trinidad & Tobago) Ltd.
Bank of Baroda (Ghana) Ltd.
Representative Offices:
Bank of Baroda (Thailand)
Associate:

14

Indo-Zambia Bank Ltd. (Lusaka)

India International Bank Malaysia Berhad

2.3.7

FINANCIAL BACKGROUND

The Banks performance has been improving over the years and is evident from the year
on year growth as reported in the annual report and other financials
2013-14
(Rs. In crores)
Segments

Domestic

International

Total

Particular
s

Curr year

Prev.year

Curr year

Prev.year

Curr year

Prev.year

Revenue

38421.82

33876.80

4980.63

4950.58

43402.45

38827.28

Assets

4,27,952.6
1

3,81,404.3
2

2,31,551.9
2

1,65,731.1
2

6,59,504.5
3

5,47,135.4
4

Balance sheet of Bank Of Baroda

15

Chapter - 3
16

WEALTH MANAGEMENT SERVICES

3.1

CONCEPT OF WEALTH MANAGEMENT:

The term Wealth Management formed with two words Wealth and Management. The meaning
of Wealth is-Funds, Assets, investments and cash ,it means the term Wealth Management
deals with funds Asset , instrument ,cash and any other item of similar nature. Wealth
Management is an all inclusive set of strategies that aims to grow , manage ,protect and
distribute assets in a much planned systematic and integrated manner.
3.2

CONCEPT OF HNWI:

A high-net-worth individual (HNWI) is a person with a high net worth that is a person with
with high investible surplus.
The Worlds Wealth Report defines HNWIs as those who hold at least US$1 million in
financial assets and ultra-HNWIs as those who hold at least US$30 million in financial assets,
with both excluding collectibles, consumables, consumer durables and primary residences.
According to Investopedia, there are distinct classifications of HNWI. An investor with less
than $1 million but more than $100,000 is considered to be "affluent", or perhaps even "subHNWI". The upper end of HNWI is around $5 million, at which point the client is then
referred to as "very HNWI". More than $50 million in wealth classifies a person as "ultra
HNWI"
3.3

TYPES OF WEALTH MANAGEMENT SERVICE PROVIDERS

Currently in India there are majorly three types of wealth management service providers viz.
Banks, Brokerage firms and Boutique advisory firms.

Banks Banks are known to have larger investment distribution model which means
that they do not concentrate on only one investment options but on a large investment
portfolio. Further they cater also to mid-level segment clients apart from the HNWIs

Brokerage Firms Brokerage firms focus on investing the customers money

majorly in shares and IPO which are equity market products.

Boutique advisory firms Boutique advisory firms are known to provide customized
financial solutions to the clients which are majorly the ultra-HNWIs (greater than
USD 30 million) and HNWIs(USD 1 million to 30 million).

17

3.4

KEY ELEMENTS OF WEALTH MANAGEMENT SERVICES

Wealth Management services involve fiduciary responsibilities in providing professional

investment advice and investment management services to a client . Depending on the
mandate of the services given to the Wealth Manager , Wealth Management services could be
packaged at various levels:
A. Advisory
B. Investment Processing
C. Custody , Safekeeping and Asset Services
D. End-to-end Investment Lifecycle Management

3.5

WEALTH MANANGEMENT SERVICES:

The term Wealth Management comprises a number of aggregated financial services. The
following categories of services offered by banks in India to their customers are generally
included in the term Wealth Management Services (WMS):
i) Referral Services
ii) Investment Advisory Services (IAS); and
iii) Portfolio Management Services (PMS).
In addition to the above services, banks also market and distribute third party financial
products. The particular business model adopted by individual banks may differ in terms of
products and services offered, corporate structure, clients targeted and revenue generated.
Though these services are offered by banks, Investment Advisory as well as Portfolio
Management Services are regulated by SEBI. Similarly, in offering referral services for
insurance, banks are required to comply with relevant IRDA regulations.

18

3.6

CONCEPT OF ASSSET CLASSES:

Asset Mix
Asset mix is the allocation of a portfolio between asset classes, it balances return and risk .
Returns are a combination of the income from an investment and the price appreciation over
the period of time. Returns is usually proxies by the standard deviation of returns, how
much the return change about the long term average.
List of different asset classes
1. Fixed deposit
2. Mutual fund
3. Equity
4. Commodities
5. Art fund
6. Real estate fund
7. Insurance product
8. Structured product
9. Gold
10. Currency

3.7

KEY CHALLENGE AREAS

Wealth management firms face many challenges in formulating winning services offering
meeting the client needs. Some of key challenges faced by wealth management firms are:
1. Highly Personalized and Customized Services

19

2. Personal relationship driving the business

3. Evolving Client Profile
4. Client Involvement Level
5. Passion Investment (Philanthropy and Social Responsibility)
6. Limited Leveraging Capabilities of Technology (as an enabler)
7. Technical Architecture and Technology Investment
8. Intricate Knowledge of Cross-functional Domain

PLAYERS IN WEALTH MANAGEMENT SPACE

MAJOR REGULATORY CHANGES SINCE 1992

20

Chapter - 4
OBJECTIVE AND SCOPE OF STUDY

The project aims to study and analyze Wealth Management in Bank of Baroda :

To have a conceptualized view on wealth management services.

Through the past results, to identify the potential of wealth management sector

To know about current scenario of Wealth Management in Bank of

Baroda ,

procedures and offerings in Wealth Management Department.

To study perceptions, preferences and investment style of customers of wealth

management products in Bank of Baroda.

Acknowledging Comparative position of the companies in the market offering wealth

management.

To know market position of Bank of Baroda in reference to Wealth Management

services.

21

4.1

METHODOLOGY

RESEARCH METHODOLY
For this study the following approach has been adopted:
Two questionnaires were prepared for branches and customers:
A structured questionnaire containing those factors which revealed product offerings,
current practices and procedures adopted for Wealth Management at Branch level.
A structured questionnaire containing those factors which revealed the understanding
and preferences of the customer regarding their investment in Wealth Management
products.

PRIMARY DATA
The primary data for this research is collected directly from the Branch Managers of
various branches in Mumbai Suburbs and the High Net Worth customers of Bank of Baroda,
Charkop Branch. Also, primary data for insurance products in Bank of Baroda was collected
22

from India First Life Insurance sales representative and some assistance was taken from
Jogeshwari Regional Office, Bank of Baroda.
SECONDARY DATA
The secondary data for this research is collected from the annual reports of Bank of Baroda,
documents provided at the branch regarding Wealth Management and Social media sites.

SAMPLE DESIGN AND SAMPLE SIZE

The design of the study undertaken is exploratory and descriptive in nature. The
research tool used is Questionnaire.
In order, to arrive at a reliable and valid conclusion it was very important that an
exploratory research should be carried out so that all the variables could be taken into
account. The inputs are given by the managers of Bank of Baroda and the customers of
Bank of Baroda. Since, the project aims at the study of various alternatives available in
the market for Wealth Management, it was apt that the respondents should be the
customers who have been using such services in past.
Quota sampling is used for both surveys of branches and customers. For the sample
units were selected into a sample on the basis of pre-specified characteristics such as location
and convenience in data collection, branches of a particular area , only high net worth
customers so that the total sample has the same distribution of characteristics assumed to exist
in the population being studied.
For this Research, data from Bank Managers of 14 branches in Mumbai suburbs for
the branch survey and data from 40 High Net Worth customers of Charkop branch for
Customer survey was collected.

TOOLS OF DATA COLLECTION

There are various tools of data collection that can be used while collecting data from
the respondents. One such tool is a Questionnaire that has been used in this project.
Following are the points that were taken into consideration while designing the questionnaire:

23

Length of the Questionnaire: The questionnaire for Factor Analysis was restricted to only
12 questions for branch survey and 18 questions for customer survey apart from
demographics and a lengthy questionnaire was avoided. Only those questions were
included in the questionnaire which would help to determine the different alternatives
taken up by the customers for Wealth Management. The questionnaire was approved by the
faculty guide as well as the industrial guide. Lengthy questionnaire can negatively impact
the response rates as well as the representation of the sample.
Questions: Repetitive questions were avoided in the questionnaire so that the respondent
enjoys filling the questionnaire and can fill it using all his knowledge without getting
irritated. Apart from this, while framing the questions, only relevant factors were taken into
consideration. The relevance of the factors was determined on the basis of the discussions
held with the mentors. The factors included are those which would reveal the tastes and
preferences of the customers regarding their investment portfolios and some well-known
principles of Wealth management. In the process, for every factor, both positive and
negative questions were designed so as to probe the respondent and get a true picture.
Scale of the Questionnaire: A Likert scale was used for the questionnaire covering all the
possible answers to the questions asked so that the respondent has a say in his answer. The
respondent should never feel that the answer he actually wants to give is not present in the
questionnaire.
Structure of the Questionnaire: The questionnaire used in the study was structured in a
manner that it reflects a train of thought, so that the respondent feels connected to the
questionnaire as if it is a logical conversation. Another important feature that was taken into
consideration while structuring the questionnaire is the order of questions. If the questions are
not properly ordered, it would result in the problem of Habituation. It means that some people
will usually start giving the same answer, without really considering it, after being asked a
series of similar questions. Respondents tend to deliver more accurate answers if the
questions pertaining to a particular factor are not asked in a series. The third important feature
that was considered during the formulation of questions is avoidance of multiple concepts in a
single question. So, after taking all the above mentioned variables into mind the questionnaire
was formulated and consequently designed.

24

Avoidance of errors: While the questionnaire was designed, full attention was paid that all
be possible errors that can be avoided. There are two types of errors that could arise while
constructing a questionnaire:

Error of Commission, Where the questions involved are worded poorly so that
they are unclear and ambiguous.

Error of Omission, Where in some questions representing a factor are left out and
hence omitted from the study.

4.2

LIMITATIONS

The limitations in the research conducted are:

Small sample size of primary data collected.

Sample data collected from only few branches of Bank of Baroda in Mumbai Suburbs
which may have resulted in biasness in data.

Sample data collected from only High Net Worth customers of Bank of Baroda ,
Charkop branch which may result in biasness in data.

Incomplete knowledge of customers and employees about the concept of Wealth

Management , products and services offered under it and the various companies
offering them in the market.

Actual Picture VS Inflation: What is the actual position of market they dont know
because everything is done by WM professionals. So they cannot assume their
position in the market that also results in inflation because economy is unknown about
the actual state. There may be chance that the customers are in risk but they are
showing the false return and Vice-versa.

25

Chapter - 5

COMPANIES OFFERING WEALTH MANAGEMENT SERVICES

5.1

PRIVATE SECTOR BANKS AND FOREIGN BANKS

5.1.1

STANDARD CHARTERED

Priority Banking personalized Wealth management program at Standard Chartered Bank. It

is their endeavor to be the Right Partner in all their personal and business ventures. Thats
why Priority Banking has been tailored to offer customers the highest level of service,

26

appropriate

to

your

5.1.1.1

ASSET SIZE:

Wealth

Management

5.1.1.2

ASSET CLASSES USED:

Department

Equities

Deposits

Mutual funds.

Commodities

Structured Products

Insurance Products

5.1.1.3

unique

has

asset

requirements

under

management

and

is

status.

Rs710

Cr.

PRODUCTS AND SERVICES

Excel banking
In todays fast moving, technology-driven world, you need your bank to keep pace
with your banking needs. Thats why you need Excel Banking - a much personalized Wealth
management service that has been designed to help you make the most of your money,
without taking up most of your time. With the services of their personal Relationship Manager
customer can access complete Wealth management solutions, from routine banking and
transaction management to more complex investment services and insurance advisory
services. Whats more, you also get fee waivers on premium savings and current accounts and
preferred pricing on a range of complementary banking products and services.
Here are the unique features of Excel Banking:

Access to a personal Relationship Manager

Exclusive privileges such as a free gold card, free debit cards and discounts on
lockers, demat accounts and overdraft against term deposits.

Free multi-city cheque book for current account and savings account holders.

Express cheque collection and national clearing speed service.

27

Free demat account.

Extended branch hour for easier and quick transactions.

Redirection of interest into any account specified by you.

Phone Banking and ATM facilities for 24 hour access Parivaar Account
Parivaar is a unique Wealth Management Solution from Standard Chartered Bank

that offers your family flexibility, convenience and essential tools for Wealth accumulation
and preservation.
Parivaar is much more than a regular Savings Account. It allows you maintain your
individual identity while allowing you to tap your familys financial strength.
Here are some of the features of the Parivaar savings account:

Your family can maintain individual savings accounts with the benefit of clubbing
balances in grouped accounts.

Anytime, anywhere access to accounts through ATMs, Phone Banking and Online
Banking.

Globa1ly valid ATM-cum-debit card can be used at 3,26,000 merchant outlets in India
and 14 million outlets worldwide.

5.1.2

ICICI WEALTH MANAGEMENT

In India ICICI bank is a very Well-known bank in the field of Wealth management. ICICI
Bank will float subsidiary for the purpose of WM activities in Canada & other market even as
ICICI has rolled out ICICI Group Global Private Clients for those with net worth of$ 1
million or more. ICICI GCPC launched their business in Dubai very recently in the month of
April-08 and caught 2500 clients. They are going to add another 1000 high network clients
this year. ICICI Bank is using the services of global players like Merrill Lynch, City group,
and UBS for catching the clients for Wealth Management business. ICICI Bank and its
subsidiaries are engaged in the development of various attractive products (services) for the

28

clients with net worth of$ I million. The eyes of ICICI Group Global Pvt. Clients on the rising
number of dollar millionaires at present they are 100,000 in number in few year the number
will definitely increase. Indias No.2 lender banker IC ICI expects to sustain the 70% growth
in its private Wealth management business. ICICI has 150,000 customers with investible
surplus of at least Rs. 10 lakhs equity, real estate and private equity is driving the private
banking business in India.
5.1.2.1 ASSET SIZE
Wealth Management Department has asset under management - Rs.1230 Cr.
5.1.2.2 ASSET CLASSES USED

Deposits

Mutual Fund

Equity

Structured Product

Insurance Products

5.1.2.3 PRODUCTS AND SERVICES

To customers of high net worth of holding deposits and investments of value 25 lac.
i.e savings account and current account , fixed deposits , mutual fund and ulip.
At ICICI Bank Wealth Management each customer have access to

Dedicated Relationship Manager.

Dedicated Customer Service Manager.

Team of Financial Experts.

Dedicated Business Banking Advisor (For entrepreneurs, managing the financial needs
of a business.)

ICICI Group Expertise. (expertise in many financial services, from banking and
broking, to insurance, real estate, equities etc)
Priority services

29

Wealth Management Branches and Lounges ( 5 wealth management branches and 8

lounges in Mumbai)

Priority Processing.

Exclusive 24-hour Customer Care Helpdesk.

Investment Planning
Step 1: Understanding your Risk Profile.
Step 2: Asset Allocation.
Step 3: Investment Advisory.
Step 4: Review your Investments.
Step 5: Matching your changing needs.

5 stage process, where Relationship Manager and a team of experts will work closely with
the customer.
Privileges
Personal Banking Privileges
personalized international Debit Card and Family Wealth Account.

Lifestyle Privileges
Investment seminars, lifestyle events and special offers on lifestyle brands.

3 Stages Objective-

1.Grow your wealth

30

Relationship Manager and assigned expert will analyze financial need and suggest
superior investment solutions to meet customers specific objectives taking into account the
current economic environment. Current financial position, investment objective and risk
taking ability is analyzed of a customer.
Accordingly investment is suggested. In case of property investment ICICI Home
Finance along with their team of real estate experts will helps to identify and shortlist
properties that meet customer's requirements. They will be with you at every step of the
property purchase process. Along with assistance in property selection, support for loans and
documentation is also provided.
2.Manage your wealth

Monitoring investments and providing periodic reviews to customers. Timely alerts on

your maturity dates, credit card and loan repayment dates, insurance premium due date etc.
Timely product recommendations.

3.Protect your wealth

Risk management of investments . diversification of investments , investment in

products according long term and short term objectives and insurance schemes and retirement
plans .

PRODUCTS

Mutual funds( ICICI Prudential Mutual Fund)

1.Equity fund, Balanced Fund , Funds of Funds ,Debt Funds , Exchange Traded Fund
.
2.IMAP- ICICI bank mutual fund analyzer for performance rating. Comparative
ratings are given between different options.

31

Portfolio management services (ICICI Prudential Management Services)

According to customer need and risk taking ability Aggressive portfolio, Deep Value
Portfolio and Focused 20 stock Portfolio are offered.7000 client base in India ,formed
in the year 2000 with 10 years of experience in portfolio management services.
Investment in Real Estate Fund-ICICI Bank has a referral tie up with ICICI Home
Finance for providing property related services.
Deposits investment can be done through Internet Banking, Phone Banking & at
selected ATMs.
Life insurance and General Insurance
Foreign exchange services
Family wealth Account
Demat account
Savings and current account
Promotions
Aggressive marketing . Advertising through newspapers , television adds , pamphlets
Hoardings
Conducting Events and Seminars, Contest at colleges, promotions in Exhibits and
fairs, communicating verbally , by phone calls, emails ,post etc. Conducting campaigns ,
providing various offers on credit card points .

5.2

FINANCIAL INSTITUTIONS

5.2.1

MOTILAL OSWAL

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer-first attitude, ethical and transparent
business practices, respect for professionalism, research-based value investing and
implementation of cutting-edge technology have enabled us to blossom into an over 1500
member team.
It has a diversified client base that includes retail customers (including High Net worth
Individuals), mutual funds, foreign institutional investors, financial institutions and corporate
clients. The Companies headquarter is in Mumbai since March 31, 2014, has a network spread
over 507 cities and towns comprising 1,534 Business Locations operated by our Business
Partners and us. As on March 31, 2014, company has 800,385 registered customers.
Research is the solid foundation on which Motilal Oswal Securities advice is based. Almost
10% of revenue is invested on equity research .At present there are 30 research analysts
researching over 200 companies across 20 sectors. From a fundamental, technical

32

and derivatives research perspective, Motilal Oswal`s research reports have received wide
coverage in the media..
5.2.1.1 ASSET SIZE

Motilal Oswal Securities Ltd brings with more than 2 decades of experience & expertise in
equity research and stock broking. They are one of the leading portfolio service providers,
with asset under management worth Rs. 590 Crores
5.2.1.2

Direct Equity

Mutual funds

Structured products

Insurance products

Fixed deposits

Commodities

Currency

ASSET

CLASSES

USED

5.2.1.3 PRODUCTS AND SERVICES

It is offering a range of financial products and services such as Private Wealth

Management, Retail Broking and Distribution, Institutional Broking, Asset Management,
Investment Banking, Private Equity, Commodity Broking, Currency Broking , Principal
Strategies and Portfolio Management services.
Portfolio Management Services (MOSt Portfolios)
Motilal Oswal is one of the leading PMS service providers, with assets under
management of approx Rs. 1300 crores and with a customer base of over 4,300. Our core
principles are value based investing, aimed at providing long-term wealth creation for
investors. Below are the flagship strategies of MOSt Portfolios, each with a different approach
to managing investments:

Value Strategy: The Value Strategy aims to benefit from the long term compounding
effect on investments done in good businesses, run by great business managers for superior
wealth creation.

Next Trillion Dollar Opportunity Strategy: The Next Trillion Dollar Opportunity
Strategy aims to deliver superior returns by investing in focused themes which are part of the
next Trillion Dollar GDP growth opportunity. It aims to predominantly invest in Small & Mid
Cap stocks with a focus on Identifying Emerging Stocks/Sectors.
33

Bull`s Eye Strategy: Bulls Eye PMS Strategy is designed to invest in stocks with
short-medium term perspective. The investment philosophy is to find Momentum in Value.
It follows an active process driven method of profit booking .The Strategy aims to buy stocks
ahead of the window when positive corporate developments occur /when valuation gaps open
up & sell when the target price of stock is reached or prices stagnate.

Focused 5- A Contra Strategy: The strategy aims to invest in fundamentally sound

companies that can benefit from changes in a companys valuation which reflects a significant
change in the markets view of the company over an horizon of three years. The Contra
Strategy focuses on investing in stocks that can benefit from growth in earnings, re-rating of
business or higher valuation of assets.
Private Wealth Management
3 categories to classify individuals and families:
1. Growth 2. Preservation 3.Transmission of families
3 critical factors:
1.Customers individuality 2.Financial Environment 3.Advisory Solutions.

Motilal Oswal Value Proposition From personalized advice to exceptional experience

Customized Financial Strategy

Privileged Access
Capabilities

Tailor Account Structures

Investment Banking Services

Relationship
Benchmarks
Personalized
Strategies

Measurement
Investment

Strong Risk Management

Investment Advisory Committee
Product Due Diligence

to

Institutional

Institutional Research
Credit Solutions
Exceptional Client Experience
Multi
Platform
Monitoring
&
Transactional Capabilities
Institutional Approach to Client
Servicing

Adherence & Governance to

your risk profile
Relationship Benefits
Global Concierge Services

Travel Services

34

Premium Lifestyle Memberships World-wide and World-class services

5.2.2

KOTAK WEALTH MANAGEMENT

The Kotak Mahindra Group (Kotak) has one of the oldest and the most respected
Wealth Management teams in India. Kotak offers the widest range of wealth to High NetWorth Individuals for over thirteen years, emerging as the largest Wealth Manager by a wide
margin.
The Kotak client base ranges from entrepreneurs to business families, and also
includes employed professionals. Kotak provides financial advice and manages wealth for
40% of Indias top 100 families with Management offices spread across 9 cities in India.
5.2.2.1 ASSET SIZE
It is also one of the largest, with Assets under Management of over Rs. 3300 Crores.
ASSET

5.2.2.2

Direct Equity

Mutual funds

Structured products

Insurance products

Fixed deposits

Commodities

Real Estate

Estate Planning

Art

CLASSES

USED

5.2.2.3 PRODUCTS AND SERVICES

Need Analysis:

Defining the customer risk profile and connecting it with the environment such as
Demographics - age and life stage and Socio economic profile attributes such as
habits and lifestyle.

Deciding Asset risk portfolio , Asset allocation and stabilizing the returns.

35

Building Portfolio of customers.

Kotak Portfolio Management products:

GEMS Portfolio

Origin

Select Portfolio

Select Optima

Klassic Portfolio Flexi

Investguard Portfolio

Core Portfolio

NRI
They are providing above products according to the customer requirement. The above
products are varying to high risk customers to low risk customers with a time origin of
investment. They have a separate service for NRI asset management service.

Transaction services:

Selecting product from wide range of Asset classes.

Research and Execution:
Research
Tier I Quantitative Assessment
Tier II Quantitative & Qualitative Assessment
Tier III Qualitative Assessment
Scheme Recommendation and Monitoring and Based on the research findings, the
best scheme should be recommended and monitored for its performance over the
investment period.

o Execution
Your decision to invest in a certain scheme comes with the need for execution of such
an investment. In this scenario, you will benefit the most with a dedicated team of
managers: Relationship manager and Service Manager

Asset Advisory services:

The main characteristics of the Asset Advisory Services are:

Transparent Advice: by allowing a broad portfolio view with no bias regarding any
product or manufacturer.

36

Asset-Goal Planning: brings in the necessary discipline to make asset allocation work
helping you plan for clear goals and ambitions.
Additional Value Added Services:

Estate Planning Services:

Following is the range of Estate Planning Services offered:

Advisory
Advise on the structuring of an Estate Plan for the benefit of future generations and
management and administration of the Estate during and post life.

Drafting and Execution

Facilitating drafting of Wills, Trust Deeds and ancillary documents tailored to specific
family needs.

Trusteeship

Acting as a Corporate Trustee for administration and distribution of the Estate.

Executorship

Acting as an Executor for administration of the Estate on the death of the Settlor.

Safe Custody

Providing safe custody for all the movable assets viz. jewellery, paintings, etc. and title
documents of various properties.
Kotak Mahindra Trusteeship Services Ltd (KMTSL) is a 100% subsidiary of Kotak Mahindra
Bank Ltd and offers Estate Planning Services to High Net-worth families.
Family Office Services:
Created to meet the needs of Ultra High Net-worth Investors, Family Offices function
as private wealth management advisory outfits. A Family Office is a comprehensive solution
to manage your familys financial and wealth affairs.
Diverse range of services for Ultra High Net-worth Individuals (UHNI) families:
Wealth Advisory and Investment Services
Banking and Credit
Estate Planning Services*
37

Consolidated Reporting
Referral for Philanthropy Services
Professional, Taxation and Administrative Services
Concierge Services

Service Eligibility

Asset Advisory Services-Financial Assets of Rs. 5 crores and more

Family Office Services-Net Worth of Rs. 1 billion and more

5.3

PUBLIC SECTOR BANKS

5.3.1

PUNJAB NATIONAL BANK

With more than 120 years of strong existence and 6081 total branches including 5
foreign branches, 6940 ATMs as on Mar14, Punjab National Bank is serving more than 8.9
crores esteemed customers. PNB, being one of the largest nationalized banks, has continued
to provide prudent and trustworthy banking services to its customers. The Bank enjoys strong
fundamentals, large franchise value and good brand image. To meet the growing aspirations of
the people and compete in these tough conditions, the Bank offers wide range of products and
services.
Wealth Management services is a stride towards PNBs Endeavour to give to its
customers an End to End solution for all their financial needs under one roof.
5.3.1.1 ASSET SIZE
Punjab National Bank and Principal Financial Group are co-sponserers.Principal
Financial Group is a recognized leader in investment management, with more than $483.2
billion in assets under management.
5.3.1.2 ASSET CLASS USED

Fixed Deposits

Mutual Fund

Equity

Insurance Products

Real Estate Fund

38

SUBSIDARIES AND JOINT VENTURES.

PNB Gilts Ltd.

COUNTRY
OF INCORPORATION
INDIA

PROPORTION
OF OWNERSHIP %
74.07

PNB Housing Finance Ltd.

INDIA

51.01

PNB Investment Services

INDIA

100

PNB Insurance Broking Pvt Ltd.

INDIA

81

NAME OF THE ENTITY

Domestic Joint Ventures

The Bank has the following Joint Ventures:
1.

Principal PNB Asset Management Company Pvt. Ltd

2.

Principal Trustee Company Pvt. Ltd

3.

Assets Care & Reconstruction Enterprise Ltd.

4.

PNB Metlife India Insurance Company Ltd

5.3.1.3

PRODUCTS AND SERVICES:

Under the Wealth Management services, the bank gives expert advice on the following areas:

Mutual fund investment

Debt Market instruments
Insurance services
Tax/Retirement planning
On line trading
Real estate

PRODUCTS:
Insurance:

Life
PNB has partnered with MetLifeInc. To form a Life Insurance Joint Venture in
India called PNB MetLife India Insurance Co. Ltd. The products of PNB MetLife

39

are being sold with trust of PNB under corporate agency arrangement with this
insurance giant.

Non Life
The Bank has made Bancassurance Tie-up with Oriental Insurance Co. Ltd.
(OICL), a Public Sector Undertaking, which offers variety of products e.g. Fire
Insurance, Motor Vehicle Insurance, Marine Insurance & Misc. Insurance Policies
like Shop-keepers Policy; Theft/Burglary Policy; Fidelity Guarantee Policy;
Personal Accident Policy, Health Insurance Policy; Overseas Travel Insurance
Policy, House Hold Goods Policy etc. at a competitive price with assured post sale
services.

Mutual Fund:
In an endeavor to enlarge the range of services available to our customers , PNB has
been distributing the products of Principal PNB asset Management Company Pvt. Ltd. from
its designated branches since July, 2004. To provide variety of Mutual Funds to its customers
now bank has also started the Distribution and Marketing of UTI Mutual Fund products.
ASBA (Applications Supported by Blocked Amount):
As a "Self Certified Syndicate Bank" (SCSB) by SEBI, an additional mode for
applying in IPO / FPO / Right Issues and NFO of Mutual Funds has been made available by
Punjab National Bank in the form of Application Supported by Blocked Amount (ASBA) to
All category of Investors who are the customers of our Bank.
What is ASBA:-ASBA means "Application Supported by Blocked Amount", enables
investors to apply for IPOs / FPOs and rights issues without making a payment. Instead, the
amount is blocked in investors' own account and only an amount proportionate to the shares
allotted goes out when allotment is finalized.
NSE Market tracker:
It is a share market tracker of NSE stock Exchange.

5.3.2 BANK OF BARODA

Bank of Baroda initiated process of providing Wealth Management Services to HNI &
affluent customers a total financial solution at one place since June 2004.
In order to offer qualitative Wealth Management Services to the customers, Bank has enabled
India First Life Insurance (IFLI) renewal insurance premium collection through ATMs and
Fund collection module for Baroda Pioneer Mutual Fund.

40

On Banks 106th Foundation Day , India First Health Card was introduced to facilitate
cash less benefits to card holders at empanelled hospitals through Point of sale(POS)
Machines ,also enabled at Merchant establishments since 2014.
Bank of Baroda offers various products of Wealth Management under different asset class
such as:
5.3.2.1 ASSET CLASSES USED
Insurance Products
Mutual Fund
Structured Products
Deposits
5.3.2.2 PRODUCTS OFFERED UNDER WEALTH MANAGEMENT
BANCASSURANCE:
For development of business of Wealth Management under Insurance Products, Bank
of Baroda has entered into Joint ventures and tie-ups with Insurance Companies likeName of Tie-up Partner
National Insurance Co Ltd
National Insurance Co Ltd
India First Life Insurance Co. Ltd

Name of Product
Non Life (General) Insurance
Medical aid Insurance
Co-branded Product Baroda
Health
Life Insurance

Date of Tie-up
01.06.2004
23.02.2006
12.11.2009

LIFE INSURANCE PRODUCTS OF INDIAFIRST LIFE INSURANCE COMPANY

Bank signed a Corporate Agency Agreement with India First Life Insurance Co. Ltd.
on 12th November, 2009 with India First Life Insurance Co. Ltd. for distribution of their Life
Insurance Products through the network of branches.
India First Life Insurance Co. Ltd. is a joint venture between our Bank (44% share),
Andhra Bank (30%) and Legal & General U.K. (26%). Andhra Bank, as we all know, is a peer
PSU Bank. Legal & General, U.K. is one of leading financial services company of United
Kingdom. Established in 1836, it has around 7 million customers relying for life insurance,
pensions, investments and general insurance plans. It is responsible for investing GBP 370
billion ( ` 26.46 lac crores) on behalf of investors, policy holders and institutions.
Bank of Baroda has obtained Corporate Agency License, from Insurance Regulatory
and Development Authority (IRDA).
The current list of products from India First Life Insurance Co. Ltd. is

41

India First Smart Save Plan

India First Young India Plan
India First Money Balance Plan
India First Money Back Health Insurance Plan
India First Secure Save Plan
India First Life Plan

(ULIP)
(ULIP)
(ULIP)
(ULIP based Health Insurance)
(Endowment Plan)
(Pure Term Insurance Plan)

Benefits:

Personal services for every customer

24 hour enquiry and grievance redresal facility online or by telephonically
Tailored made products according to the market demand and need of the customers
Dedicated sales representatives allotted to max. 11 branches for more concentrated and
efficient services.
30 mins policy issue with 3 min claim process to customers with minimal paper work ,
documents of policy delivered to customers within 7-10 working days.
Online facilities available as help desk, issuing policy online ,live chat.
Follows AAG- ask, apply and Get.
Always connected with customers through message alerts ,sending emails etc about
reminders or new offerings.

NON-LIFE INSURANCE BUSINESS:

Bank has entered into Bancassurance business on 1st June 2004 for selling non life
insurance policies without participating in the risk by signing a Memorandum of
Understanding (MOU) with the National Insurance Company Ltd. (NICL), which is one of
the fastest growing general insurance companies in Public Sector. Bank also obtained a
license for undertaking this business as Corporate Agent from the Insurance Regulatory &
Development Authority (IRDA) under the provisions of IRDA Act.
Bank is authorized to sell all the 200 and odd different types of policies of NICL
covering variety of non life risks, some of the policies which are easy to sell and which are
common in the market are:
1. Personal Accident Policy.
2. Comprehensive Motor Policy.
3. House-holders Policy.
4. Shop-keepers Policy.
5. Fire Insurance Policy.
6. Burglary Policy.
7. Machinery Breakdown Policy.
8. Electronics Equipment Policy.
9. Marine Transit Policy.
10. Traveler's Policy.
11. Overseas Medi-claim Policy.

42

12. Farmers Package Policy.

13. Workmen Compensation Policy.
14. Fidelity Insurance Policy.
Benefits:

Payment of premium Online www.niconline.in : using Credit/ Debit cards or swipe machines
in select offices and for select products Private Car, Two Wheeler, Personal Accident,
Individual Mediclaim, Parivar and Overseas Mediclaim
24x7 live chat for Product and service related information for Customers
Facility of payment of premium through NEFT / RTGS.
Swipe card facility in all offices in Delhi
Net banking transaction introduced
Mobile based renewal facility for personal line insurances
SAMMAN Services has been introduced for Senior Citizens
BARODA HEALTH MEDICLAIM INSURANCE BUSINESS:
Bank launched a co-branded product for the benefit of Banks customers with
exceptional features in a tie-up arrangement with National Insurance Company Ltd. (NICL)
on 23rd February 2006. The product carries a very low amount of premium besides having
many benefits.
This product that is available through network of Banks branches, attaches utmost
importance for our Bank in terms of augmenting fee-based income. Our Bank earns
commission @ 15% of the premium amount paid by the customer.
It is a Medical Insurance Scheme, which takes care of the hospitalization expenses incurred
by the customer upto the amount of sum insured, in respect of the following eventualities.

Any illness / disease

Accidental injury and / or any ailment
Any surgery that is required in respect of any disease or accident that has occurred
during the policy period
Pre-existing diseases covered after three consecutive continuous claims free policy
years in respect of all diseases provided there was no hospitalization for pre-existing
ailments during such three years of insurance.

Benefits:

This policy is available only to account holders of Bank of Baroda.

It is available for a very low premium compared with similar products available in the
market.

43

The insured pays one single premium and obtains cover for a family of 4 self, spouse
and 2 dependent children upto the age of 25 (A family Floater Scheme).

Non-earning son / daughter upto the age of 25 years are considered dependent
(scholarship amount is not considered as income.) Married daughters even below the
age of 25 years are not considered dependent.

Upper age limit of primary member (first named person) is allowed upto 80 years, if a
person obtains the insurance cover before completion of 65 years and continue to
renew the policy upto the age he wishes to or 80 years, whichever is earlier.

No pre-medical examination required for commencement of health cover.

Insurance coverage i.e. sum assured may range from ` 50,000/- to ` 5.00 lacs per
family of 1+3.

Any surgery required on account of any disease or accident that occurs during the
currency of the policy is also covered.

Pre-existing diseases also get coverage after 3 continuous claim-free policy years.

The scheme is administered through Third Party Administrators (TPAs) and the TPAs,
looking after the entire country have collectively identified the hospitals in various
cities for treatment of the insured individuals.

The insured individuals get cashless hospitalization facility in these selected hospitals
through TPAs. The whole process is hassle-free and treatment upto the limit of
insurance is available without any payment at the time of admission or discharge.
Payment of hospital bill up to the sum insured will be taken care of by the TPA
directly.

Cost of Health check up is allowed @ 1% of sum insured after completion of 3

continuous claim free years of Policy.

In case of hospitalization of children below 12 years a lump sum amount of ` 1000/- as

out of pocket expenses to any one of the parent is payable.

Income Tax benefit is available under section 80 D for the premium paid.

Ambulance charges up to ` 1,000/- is reimbursable, additionally.

A copy of the guidebook is provided to each policyholder who takes policy from the
branch which provides all the details and procedure with regard to lodgment of insurance
claim.
MUTUAL FUNDS:

44

Bank of Baroda to provide HNI and affluent customers a total financial solution
including alternate investment avenues under one single roof, has entered into tie-up
arrangements with -8 Asset Management companies namely,
Name of Tie-up Partner
UTI Mutual Fund AMC Ltd.
Birla Sunlife AMC Ltd.
Reliance Capital AMC Ltd.
Sundaram BNP Paribas AMC Ltd.
Franklin Templeton Investments
Baroda Pioneer AMC Ltd.
Kotak Mahindra AMC Ltd.
IDFC AMC LTD.

Name of Product
Various Mutual Fund Products
Various Mutual Fund Products
Various Mutual Fund Products
Various Mutual Fund Products
Various Mutual Fund Products
Various Mutual Fund Products
Various Mutual Fund Products
Various Mutual Fund Products

Date of Tie-up
01.03.2006
05.04.2006
06.06.2007
15.10.2007
15.10.2007
05-10-2007
03.06.2009
03.06.2009

Product Offerings:
UTI Mutual Fund AMC Ltd:
Offers fund in 3 categoriesEquity Fund (27)
Balanced Fund (9)
Debt Fund (15)
Birla Sunlife AMC Ltd:
Birla Sunlife AMC Ltd offers fund on the bases of customer needs:
Wealth creation Funds (18)
Tax savings Fund (1)
Savings Fund (9)
Regular Income Fund (2)
Other Funds (4)
Reliance Capital AMC Ltd:
Offers fund 3 categoriesEquity Fund (28)
Debt Fund (12)
Gold (2)
Sundaram Mutual Fund :
Offers fund in 2 categories:
Equity (15)
Fixed Income (12)
Frankiln Templeton Investments:

45

Set up in 1996 as Templeton Asset Management India Pvt. Limited in India. It flagged off the
mutual fund business with the launch of Templeton India Growth Fund in September 1996,
and since then the business has grown at a steady pace.
It offers fund in 2 categories-equity and Fixed Income funds. Total funds offered are 26.
Baroda Pioneer Asset Management Company Limited:
Baroda Pioneer Asset Management Company Limited is a joint venture between two large
and well-established financial services companies - Bank of Baroda and Pioneer Investments,
a joint venture (2008).
Baroda Pioneer Mutual Fund is positioned to serve the varied asset management needs of
investors in India through a range of equity, debt and money market offerings.
The Company operates out of 54 locations in India and manages average ass ets of about Rs.
8105.95 cr. for the quarter ending March 2014.
Product offerings:
Baroda Pioneer PSU Equity Fund
Baroda Pioneer infrastructure Fund
Baroda Pioneer ELSS96
Baroda Pioneer Growth Fund
Baroda Pioneer Balanced Fund
Baroda Pioneer Banking and Financial services Fund
Kotak Mahindra Mutual Fund:
Offers funds in following categories:
Equity fund (9)
Debt fund (14)
Balanced fund (1)
Funds of fund (2)
Exchange traded fund (4)
IDFC Mutual Fund:
Offers funds in the following categories:
Equity Funds (7)
Hybrid Funds (4)
Debt Funds (3)

Ranking of the Tie-up Mutual Fund Companies with Bank of Baroda

Name of Mutual Fund Company

Asset under Management (Rs.Cr)

Industrial Rank based on AU

Reliance Mutual Fund

103542

Birla Sun Life Mutual Fund

89051

46

UTI Mutual Fund

74233

Franklin Temp Mutual Fund

45404

IDFC Mutual Fund

41349

Kotak Mahindra Mutual Fund

33079

Sundaram Mutual Fund

16024

14

Baroda Pioneer Mutual Fund

7217

19

Benefits:

Payment of premium Online

24x7 live chat for Product and service related information for Customers
Net banking transaction introduced
Mobile based renewal facility for personal line insurances
Personal services for every customer
Performance can be viewed online .
All the Mutual Fund Companies are renowned and well performers in market.
Tailored made products according to the market demand and need of the customers
Dedicated sales representatives allotted to branches for more concentrated and efficient
services.
Online facilities available as help desk, issuing policy online ,live chat.
Always connected with customers through message alerts ,sending emails etc about reminders
or new offerings.
BARODA FIRST WEALTH PACK (BFWP)
Under Wealth Management Services, Bank has recently introduced a new combo pack
of Savings Bank, Recurring Deposit & Group Term Insurance and Unit Linked Life Insurance
Product styled as Baroda First Wealth Pack (BFWP), it is a structured product catering to
customer various investing needs together.
Under Baroda First Wealth Pack, which is a bundle of Banking and Insurance
products, a lump sum amount shall be taken from the customer in order to provide the
customer high yield through advanced savings account, safe and steady growth of investment
through Recurring Deposit, Market related return through ULIP and life Insurance cover
through ULIP as well as inbuilt term insurance in Savings Bank Account. Under the Baroda
First Wealth Pack (BFWP) following products shall be offered to customers:
1.Savings Account styled as Baroda First Savings Deposit Account having in-built term
insurance and other various features like auto sweep, reverse sweep etc.

47

2.Recurring Deposit Account styled as Baroda First Regular Deposit Account, wherein only
annual installments shall be payable.
3.India First Smart Save Plan- ULIP Scheme of India First Life Insurance Co. Ltd.
4.Group Term Insurance through Baroda First Savings Deposit Account.
Baroda First Wealth Pack shall be available in 3 variants:

Baroda First Wealth Pack-Silver

Baroda First Wealth Pack-Gold
Baroda First Wealth Pack-Platinum

Out of above three variants, customer will have the option to choose any of the
variants depending on his income as well as saving needs and shall be required to deposit the
respective annual amount as stated above for 10 years. Parent company for BFWP is Malad
Branch.
Target Group:

HNI, Salaried Class people, Professional and Self-employed persons, Businessmen as

well as the agriculturists in the rural areas and other individuals

Customers who have attained the age of 18 years or above but not completed the age
of 60 years and wish to buy Baroda First Wealth Pack (BFWP).
Features:

Baroda First Savings Bank A/c and Baroda First Regular Deposit A/c are products of
Bank of Baroda and shall be governed as per Banks rules.

India First Smart Save Plan and India First Group Term Insurance Plan are products of
India First Life Insurance Co Ltd and shall be governed by Companys rules.
Insurance claims shall also be settled as per Companys rules.

The amount paid by the customer towards insurance premium is admissible for
deduction . Insurance premium shall be payable on the date of opening of account and
renewal premium on the respective date in the next year and subsequent years.

Settlement of claim under the scheme rests with India First Life Insurance Co Ltd.

The completed proposal form along with other supporting document for insurance (i.e.
papers related to India First Smart Save Plan (ULIP) and Group Term Insurance
Plan) will be collected from customer by the India First Business Development
Manager (BDM)/ Bank staff and finally given to the Branch for opening of account.

The process of Ask Apply Get (AAG) for simplified issuance of the policy shall be
followed by the India First BDM (Business Development Manager) to activate the
insurance policy.
48

The documents collected shall be dispatched by the Branch to the Central Processing
Center of India First Insurance Co Ltd at Central Processing Cell of Company.

The hard copy of the India First Smart Save Plan policy document along with the
certificate of insurance for group term plan shall be handed over by India First
Insurance Co Ltd to the Branch within one week after opening of account for onward
delivery to the customer.

Benefits:

FREE COLLECTION of outstation cheques up to ` 15,000/- drawn in favor of account

holder, however, postage / out of pocket expenses will be recovered.
IMMEDIATE CREDIT of outstation cheques up to ` 25,000/-.
20 Cheque leaves will be provided free of cost per half year
FREE NET BANKING
FREE ATM CARD
FREE STANDING INSTRUCTIONS
It is a structured product of moderate risk to cater the customer need of maximum
return on low risk of investment.

5.3.2.3
SERVICES PROVIDED BY BANK OF BARODA UNDER WEALTH
MANAGEMENT:
E-BROKING:
Baroda e-Trade:
Bank of Baroda offers Baroda e-trade, the online trading facility, through its whollyowned subsidiary BOB Capital Markets Ltd. BOBCAPS is a SEBI registered Category I
Merchant Banker and is also a member of both the premier exchanges in India.
Benefits of Baroda e-trade:

Simple and Reliable Online Trading Platform.

No account opening charges
No annual maintenance charges (AMC) for Baroda e-trade
Competitive brokerage structure
2-factor authentication as per the SEBI guidelines enabling the secured trading
transactions
The system offers Browser and EXE version as per clients choice
After market order (AMO)
Clients also get to use the call-n-trade option along with the Internet trading option for
placing orders
The back office reports have more than 30 reports - contract notes/bills/ledger/STT etc
available to clients through internet on 24x7x365 basis.

49

Baroda e-Trading:
Name of Tie-up Partner
M/s India Infoline Limited

Name of Product
Baroda e-Trading

Date of Tie-up
25.01.2007

Bank of Baroda in association with M/s. India Infoline Ltd. brings forward a fast, easy,
transparent and hassle-free way for investing / trade in shares in secondary capital market
through National Stock Exchange and Bombay Stock Exchange.
Benefits of Baroda e-Trading:

Baroda e-Trading is 3-in-1 integrated account. Bank of Baroda helps to integrate

banking, demat and trading accounts.

Trading in shares backed by funds and securities available in the bank / demat
account.

Access to world class research reports, absolutely free, on trading and investment from
India Infoline.

All hurdles associated with e-trading like tracking of settlement cycles, paying and
receiving funds in savings account, paying and receiving shares in Demat accounts
have been removed.

Investor Terminal & Trader Terminal - Trading work station that refreshes the rates on
its own of stocks that are of interest the customers. For traders, this is a premium
service and available at a cost or minimum brokerage amount.

Multi exchange trading :Trade execution on both the exchanges, BSE & NSE.

Instant Limit - based on funds transferred to trading account.

MIS Customer can generate / view / print your accounts related reports and details
(contracts/bills/ledger, trade register, net position details, etc.) any time any where.
Other Products under Tie-up Arrangements:
Name of Tie-up Partner

Name of Product

Date of Tie-up

SEBI (NSE BSE)

ASBA (Application Supported 04-09-2008

by Blocked Accounts)

ASBA (Applications Supported by Blocked Amount)

As a "Self Certified Syndicate Bank" (SCSB) by SEBI, an additional mode for
applying in IPO / FPO / Right Issues and NFO of Mutual Funds has been made available

50

by our Bank in the form of Application Supported by Blocked Amount (ASBA) to All
category of Investors who are the customers of our Bank.
What is ASBA:
ASBA means "Application Supported by Blocked Amount", enables investors to apply
for IPOs / FPOs and rights issues without making a payment. Instead, the amount is blocked
in investors' own account and only an amount proportionate to the shares allotted goes out
when allotment is finalized.
It is a supplementary process of applying in initial public offers (IPO), right issues and
follow on public offers (FPO) made through book building route and co-exists with the
current process of using cheque as a mode of payment and submitting applications.
Bank is providing this value added service free of cost for issues with book building at Stock
Exchanges.
Benefits of ASBA to Investors:

The investor need not pay the application money by cheque rather block his/her bank
account to the extent of the application money, thus continue to earn interest on
blocked money in the account.
The investor does not have to bother about refunds, as in ASBA only an amount
proportionate to the securities allotted is taken from the bank account when his/her
application is selected for allotment after the basis of allotment is finalized.
The application form is simple and can be downloaded from BSE / NSE websites and
need not to visit the office of broker / consultant to collect blank form or deposit the
filled up form.
The investor deals with the known intermediary i.e. his/her own bank.

Eligibility of Investors:All investors who are having a current / savings bank account with our bank can apply
IPO/FPO/NFO/Right issues using ASBA facility thorough his/her bank account with us.
FIXED DEPOSITS:
Depending on the period, various fixed deposit products are available with good
interest rates on your savings. Offering security and competitive rates of interest on the
following deposits with

For Deposits upto 12 months:

o Short Deposits
For Deposits over 12 months:
o Baroda Maha Utsav Deposit Scheme
o Baroda Double Dhamaka Fixed Deposit
o Fast Access Deposit Scheme
o BOB Suvidha Fixed Deposit Scheme
o Regular Income Plan
51

o
o
o
o
o

Monthly Income Plan

Regular Income Cum Recurring Deposit
Capital Gain Account Scheme, 1988
Term Deposits
Baroda Tax Savings Term Deposit

As Recurring Deposits:
o Recurring Deposit
o Baroda Samriddhi Quarterly Recurring Deposit
o Baroda Samriddhi Half Yearly Recurring Deposit
o Yatha Shakthi Jama Yojana

Benefits:

Wide range of deposits available to suit various needs of customers regarding short
term o long term deposits with attractive interest rates.

Wide range of deposits available which varies according customer preferences such as
tax saving, monthly savings, combination of fixed and recurring deposits.

Various schemes to give added advantage to customers with attractive interest rates.

Deposits tailored according to the demographics of the customers such as income, age,
purposes etc.

Low risk products for investing money with fixed and secured returns.

5.3.2.4

ROLE AND RESPONSIBILITIES

ROLE OF THE BRANCHES IN PROMOTING WEALTH MANAGEMENT SERVICES

Role of the branches in promoting wealth management services attaches utmost importance in
todays perspective as Wealth management services offered by the banking institutions have
assumed significance from the customers perspective as they always look for plethora of
choices in terms of return as well as protection of their investment.
Branches are the delivery channels in selling & distribution of various third party products,
which in turn not only generates revenue handsomely but also enhances the brand value of the
Bank. Therefore, the branches must have focused marketing approach with aggressive and
organized efforts.
Role of branches in promoting Wealth Management Products:

Liaise with the Regional marketing officers

52

Liaise with local marketing officers, if any, allotted to the branch

Liaise with the sales team of the respective third party

Observing special week / fortnight

Provide guidance / counseling to customers with regard to their investment queries

Popularizing the Banks initiatives for sale & distribution of these third party products

The widespread publicity with focused marketing approach proactively amongst the
target group of customers would certainly give an edge to the efforts of the branches for
increase of business and revenue for the Bank in this fiercely competitive environment.
However, branches must note that the efforts should be made to sell those products that satisfy
and meet with the needs & requirements of the customers.

INSURANCE PRODUCTS
ROLE OF INSURANCE COMPANIES REGIONAL OFFICES
SALES PROMOTION
India first life insurance company is conducting wide publicity in the branches of the
Bank through supplying Posters, Banners and Pamphlets specially targeting the product.
Offices of NICL all over the country are advised to supply publicity material,
necessary literature on their various insurance policies and stationery for facilitating the
insurance business at all Bank of Baroda branches.
Sales representatives appointed for sale of India first life insurance with allotment of
maximum 11 branches of a particular area. Total responsibility from Targeting customers,
converting leads into clients to providing after sale services and grievance redressal is handled
by the assigned Sales representative of that particular area thereafter.
ROLE OF SPECIFIED/IDENTIFIED STAFF IDENTIFIED FOR INSURANCE PRODUCTS
Popularizing the tie-ups in local areas and approaching all our Corporate clients &
Big Clients for business along with the branch officials.
Sensitizing the designated Branch Managers and other Officers / staff about the tie-up
and also familiarizing them about the procedure of mobilizing / booking business.
Following up with the leads generated by branch staff , need analysis of customers,
converting them into clients,(additions)

53

Insurance being a matter of solicitation, requiring appreciation of the insurance needs

of the prospective customer and effectively explaining to him/her the coverage of risks. This
warrants application of selling skills and proactive approach on the sales representatives part.
MUTUAL FUND
ROLE OF MUTUAL FUND COMPANIES REGIONAL OFFICES
SALES PROMOTION

During the NFOs Mutual Fund company does a lot of publicity and promotional
activities which generates the customer interest to invest in the offers and this makes
selling easier.

MF Company would be giving wide publicity in the branches of the Bank. They shall
be supplying Posters, Banners and Pamphlets specially targeting the product.

The application forms and other promotional materials will be made available at all
major centers and offices across the country.

Popularize the tie-up in local areas and approach all our Corporate clients & Big
Clients for business along with the branch officials.

Sensitizing the designated Branch Managers and other Officers / staff about the tie-up
and also familiarizing them about the procedure of mobilizing / booking business.

MONITORING THE PROGRESS OF THE BRANCHES / SPECIFIED PERSONS ON

MONTHLY BASIS
Collecting and compiling the monthly progress made by the Branches for Mutual
Fund business and sending the monthly consolidated Branch wise progress of the Zone to the
Head Office.

ROLE OF SPECIFIED/IDENTIFIED STAFF IDENTIFIED FOR SELLING MUTUAL

FUND PRODUCTS

To explore business prospects along with the Branch Staff & Branch Managers
support and the Mutual Fund Companys Staff, and mobilize maximum business to
make the tie-up a successful initiative.

To guide and facilitate the customers of the Branches for the Mutual Fund business
development with the support and team work of the Branch Manager & other Staff
member.

54

To maintain a close liaison with the corresponding Asset Management Company at

local level.

To ensure that the applications received at the designated Branch are properly dealt as
per the laid down procedure.

The Branches / Specified Persons should see that all transactions of investors will be
processed by the AMC as per the rules & regulations prescribed by the AMC
governing the transaction.

EFFORTS BY BANK OF BARODA

In terms of IRDA requirement Banks own employees are required to undergo training
and pass the examination in life insurance for undertaking selling of life insurance
products.
Bank of Baroda has been organizing such training program from time to time in
coordination with insurance partners.

Augmentation of fee income is vital for the Bank and each branch to make extra
efforts to increase its fee income through a variety of product and services by cross
selling and up selling strategies.

All the branches are proactive in marketing /selling of life insurance products and
spontaneously render help / assistance and co operation to the representatives of
IndiaFirst Life Insurance Co. Ltd. towards developing the business.

Intensive training of identified officers and staff in the branches was given through
the training system of NICL as well as the Bank. (additions)

5.3.2.5

CUSTOMER GRIEVANCE REDRESSAL MECHANISM

The grievance redressal mechanism in case of any customer complaint has been
introduced to ensure hassle free customer service. In case branches / regions do not get
positive response from ROSA coordinators / Chief Regional Manager, they are suppose to
make a reference to Wealth Management Services department at Corporate office giving
full particulars and details of the case.

Chapter - 6

55

ANALYSIS AND FINDINGS

6.1

ANALYSIS

Survey was conducted in order to get branch feedback about the current practices and
procedure for wealth management and the major constraints faced to promote these services.
Also a survey was conducted to collect customers feedback on the various wealth
management services used by them and how much satisfied are they using the services
provided by Bank of Baroda. Below are some of the key findings:
In Bank of Baroda following products and services are offered under Wealth Management:

Deposits
Insurance products
Mutual Funds
Structured Product
ASBA and e-broking

Approximate number of customers using services provided under Wealth Management

6
5
4

Number of Branch

3
2
1
0
1000-5000

10000-15000 15000 and above

Age

Gender
Male

18%

5000-10000

>
30

Female

30
20
10
no.of customers
0

83%

51
-6
0

Below 1000

Age in years

56

Profession
Service

Awarness about WM in BOB

Professionals

5% 3%
Self Employed
Housewife
18%
18%
58%
Other

23%
78%

no of
customers
knowing about
WM in BOB

No of
customers not
knowing about
WM in BOB

Approximate Income generated through Wealth Management services in your Branch

9
8
7
6
5

Number of Branch

4
3
2
1
0
Below 30000

30000-50000

50000-100000

100000 and above

Product preference by customers

23%

15%
4%
2%

india fisrt life

insurance

baroda wealth pack

baroda health

mutual fund

deposits

other

55%

57

Product Preference by customers

Fixed deposits

Baroda Health

Baroda Pioneer mutual fund

other

4%
13%

Baroda Wealth Pack

India first life Insuranace

13%
39%

26% 4%

REASONS FOR SUCH PREFERENCE

Fixed and assured returns for customers

lower premiums

4%
online facility to make premiums or payments
8%

good services

4%

35%
exemption from medical check up

unique scheme/policy
19%
wide range of deposits available
4%
4%
other

reimbursementof mediclaim
23%

Promotional Activities
adv through newspapers,pamphlets and banners

customer meets

promotion within branch

conducting campagns

2% 7% 2%
30%
5%
setting up help desk
12%
28%

communicating verbally

personal visits

14%
other

58

No of customers
30
25
20
15
10
5
0

re
co
m

ot
he
r

si
on
al
pr
of
es

Annual Income

18
16
14
12
10
8
6
4
2
0

10
00
00
0-

15
00
00
0

no of customers

>
50
00
00

no of customers

by

m
en
da
tio
n

O
ve
ra
ll
re
pu
ta
ba
tio
nk
n
s
in
ve
st
m
en
ts
ty
le

tr
an
sp
ar
en
cy

no of customers

Anticipated trend of annual income of customers

25

23

20
15
10

11
Annual income

5 6

m
gr
ow

de
cr
ea
se

e
sa
m
St
ay

su
bs
ta
nt
ia
ly

0
od
er
at
el
y

59

investments in WM products
Fixed deposit

Mutual fund

structured product

other

Equity
Commodities
6%
6%
25%

Real estate fund

Insurance product

29%
13%
10% 1% 10%

Risk apetite of the consumers

35
30
25

preference for investment rupee

acc to the risk involved
investment in stock mutual fund

20
15
10
5
0
low risk/Mf in blue chip comapnies

next major expentidutre

25%

23%

5%
20%

28%

Buying a house-real esate-car

college edcaton
capitalizing new business
providing for reirement
other

60

Spending Accumulated Investments

18% 10%

any time now

1 to 5 years
6 to 10 years
11 to 201 years

15%
58%

Strategies to maximise income from Wealth Managment

Creating maximum product awarness

cross selling and up selling

13%
generating leads and identifying HNW customers
word of mouth adv
19%
6%
3%
competitive rate of int
flexible procedures and door to door services
13%
16%
29%

other

Preferences for other banks over BOB

30
25

27

20
15

19

10

no of customers
16

16

5
0
private and foreign banks

financial institutions

1
other

behaviour of customers towards losses

Sell it quickly

15%
3%
sell over several months40%sell over an entire year

stick with investments for long term

43%

61

Understanding of investing in the market

25
20
15
10
5
0
in
ve
st
in
g

am

at
eu
r

in
te
re
st
in

no
vi
ce

no of customers

no of customers

no of customers choose other banks over BOB for:

de
di
ca
te
d

W
M

se
rv
ic
es

te
am

ot
he
r

no of customers

be
tt
er

be
tt
er

in
tr
at
es

30
25
20
15
10
5
0

MAJOR CONSTRAINTS
customer reluctance in investing in high risk products

10%
insufficient time and knowledge with BOB staff

No dedicated dept or specialised officer

competition by peer banks

15%

5%
5%
past experience,current economic and market conditions
5%
5%

26%

already investors with other institutions

13%
other

no proper after sale services to customers

Low confidence in wealth managemnet products

15%

62

EXPECTED SUPPORT BY BOB

Dedicated department team or

officer
introduction of competitive
products with low risk
installation of system to provide
after sale services

3% 6%
17%

33%

8%

Training to staff
increase in advertising rate to
create maximum product awarness
good co ordination with india first
and baroda pioneer
representatives

other

8%

25%

Rating for BOB WM services

185
180
175

179
176

176

177

170

172

165

171
165

160

162

rating by customers

155
ef
ci
en
tly
in
te
ra
ct
in
g

un
de
rs
ta
nd
in
g

ne
ed
s

150

63

customer satisfaction with overall products of Bankof Baroda

8%3%
8%

20%

63%

very satisfied
somewhat satisfied
neutral
somewhat dissatisfied
very dissatisfied

64

6.2

KEY FINDINGS:

These findings are based on the branch survey and customer survey conducted :

Maximum number of Customer generated in the branches monthly is between 10005000 for Wealth Management products.

The customer available for Wealth management products are 18% female and 82%
male out of which maximum are in the age group 31-50.

Mostly the HNWI are self employed or professionals with annual household income
between 500000-1000000.Their income is likely to grow moderately in future.

Awareness about the Wealth Management products of Bank of Baroda among the
customers is only 22%.

Apart from deposits customers are not fully aware of the Wealth management products
and services.

After deposits the second most preferred product by customers is India first life
insurance and Baroda wealth pack.

Majorly below 30000 income monthly is generated through Wealth management

products in the branches.

Customer needs products with assured and safe returns with low or moderate risk.

Major promotion of Wealth management products is done through advertising through

print media followed by communicating verbally to customers when they visit branch
and by conducting campaigns in the branch or off-site in specific localities.

Majorly customers choose Bank of Baroda for banking because of overall reputation
of the bank, location of the branch suiting their convenience and customer services
provided at Bank of Baroda branches.62% of customers are very satisfied with overall
products of Bank of Baroda followed by 20% customers somewhat satisfied. Bank of
Baroda Wealth management services are opted majorly for understanding and meeting
customer investment needs, Being easily accessible and Following up reliably.

Customer preference over Bank of Baroda for banking is majorly with financial
institutions and Private sector and Foreign Banks. This is majorly because of better
services, better interest rates and strong customer relationship management in these
Banks.

65

Preference of customers is maximum for investment basket of low risk plus high risk
products and to stock in blue chip Mutual Fund Companies. This indicates that
maximum number of customers have low risk taking capabilities.

Maximum customers next major expenditure is paying for college education 28%
followed by Buying a house, car , investment in real estate etc 22%. This is evident
from the fact that maximum number of customers belonging in the age group of 31-50
, whereby an individual is in process of settling in his or her life. Therefore whatever
the investments with the individual would be used in 1 to 5 years.

Most commonly used strategy used for income maximization from wealth
management products is indentifying HNW customers and generating leads for India
first and Baroda Pioneer representative 29% followed by creating maximum product
awareness 19% among existing customers and building strong customer relationship
and using word of mouth advertising to attract customers. Maximum product
awareness is created through various promotional activities.

Maximum customers plan for long term investments for about a year or above a year
and not selling them immediately after incurring losses. This is because maximum
customers have basic understanding or no knowledge about Wealth Management
industry products and services. Majorly their primary investing objective is is growth
47% followed by Safety 40%.

The major constrain faced by the branches is that there is no special department or
specialized officer appointed in every branch or at least in high business branches
(26%)who can completely focus on Wealth Management services right from
indentifying the HNW customers, their need analysis to providing efficient after sale
services and handling customer grievances. The next constrain is customer reluctance
in investing in high risk products(16%) because of low confidence in wealth
management products followed by the constrain -insufficient time and knowledge
with the Bank of Baroda branch staff(15%).

Dedicated team or a specialized officer should be appointed in each or major business

branches (33%)to only look after the wealth management products and services. Also
for generating leads for India first life insurance and baroda pioneer mutual fund staff
should be trained (25%)and provided sufficient knowledge about wealth management
products so that they can cater to customer doubts and queries in the absence of these
representatives. Many customer have grievances about after sale services , they require
constant updates on their investment growth and further action plan relating to market
based investments. Such systems can be installed (17%)which can maintain complete
customer profile of his accounts products and customer details so that grievances of
after sale services can brought down to a lower rate.

66

Chapter - 7
CONCLUSION & RECOMMENDATION
7.1 CONCLUSION
The Indian markets competitive intensity is increasing as a number of new local and
global players are planning to enter the market, while existing players are expanding their
operations aggressively. A number of wire houses are launching wealth management services,
aiming to gain greater wallet share by cross-selling. In the short term, the industry will remain
fragmented, with a large number of broker-dealers, sub-brokers, financial advisors, insurance
agents and tax consultants offering wealth management services.
Wealth Management being ancillary business of Bank of Baroda it has not still
established its roots in the Wealth Management market where well established players and cut
throat competition already exists. Most organized players have so far focused mainly on the
urban segment, leaving untapped about one-fifth of Indias high net worth individuals
(HNWI) population. While early entrants and established local players have gained trust with
potential investors. New entrants like Bank of Baroda in the Wealth Management market will
need to invest heavily in brand-building exercises to convey their trustworthiness.
For brand-building as a Wealth Management service provider it is necessary to create
maximum awareness about the Wealth Management products among the existing and
potential customers. Awareness of available financial products is low in the target population,
especially in Tier 2 and Tier 3 cities. This is mainly because the bank has joint ventures and
tie-ups with other Mutual fund and insurance companies for sale of Wealth Management
product. The marketing and selling is mainly done by sales representatives of these
companies. Bank Of Baroda as a bank is a well established player in the banking industry but
as a Wealth management service provider it plays a secondary role in promoting these
services. For example , India first life insurance company does not engage in any marketing
and promotional activities for its products. It conducts all marketing activities through its copartners Bank of Baroda and Andhra Bank. Here, it is very difficult to tap potential customers
for insurance products where a well known established player like LIC already exists.
Also, majority customers targeted for wealth management products are existing
customers of Bank of Baroda. These customers divert their fund from deposits and saving
accounts to invest in wealth management products affecting the core banking business of
Bank of Baroda. Therefore it should be seen that Wealth management business should be
conducted without affecting its core business.
Moreover customer faith in private investment companies has dithered due to number of
factors including a series of high-profile scams, detrimental practices of wealth advisors
with a short-term view , miss-selling on account of completing the targets and the lack of a
strong investor protection environment which has contributed to investor insecurity. Advisors
tend to push products that earn higher commissions under the current framework and
recommend frequent portfolio churns to increase the number of transactions, leaving clients
feeling cheated. This the primary reason for investors taking a myopic view towards
investments, largely discarding the option of long-term investments and personal retirement
planning unless offered as an additional tax savings instrument. This affects the brand image
of the institution offering Wealth management Services.

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The percentage of wealthy individuals with the branches is very small compared to
other established players. This factor also differs according to the locality of Bank of Baroda
branches. For many branches in suburb areas the HNWI customer base is low, 80%- 90%is
aspiring class who does not have the surplus income to invest in high risk products. Their
major requirement is fixed and secure income with minimal risk, 5%-6% are senior citizens
who are risk averse hence not available for investments in Wealth Management products,
remaining 5%-10% are already investors with other established players in the market.
The HNWI and family-office segment is largely served by foreign banks and large
domestic brokers, whose reach is limited to metro areas. It is estimated that about 20% of the
Indian HNWI population lives outside major metros and is still served by unorganized
players. Here, the reach of Bank of Baroda as a wealth management service provider will play
a very important role in capturing available wealth and converting it to assets under
management.
Bank of Baroda has maximum customers in the age group of 31-50. This group of age
is dynamic in nature, comparatively has high risk taking capability. The demographic
difference presents an opportunity to create new products to address the needs of a young
population and leverage new technologies. Also bank has high number of customers
belonging to below 25 years age group. Focused efforts are required to tap this young mass
affluent segment with more tailored products and services under Wealth Management suiting
their requirements. This would enable the bank to maintain long term relationship with this
group of customers. Banks focus of promoting the Wealth management products is more
Traditional, advertising through print media which can be changed to more technology driven
approach such as social- and mobile-enabling investing applications as a key differentiator.
India has the key ingredients of a high-growth wealth management market, namely a
very large and young mass affluent segment; an increase in the wealth of global Indians; the
Indian governments push to curb illicit leaks and more tightly regulate markets; and an
increasing share of the organize market players. The regulatory environment in the Indian
wealth management space is evolving, presenting opportunities for established wealth
managers to expand their offerings. Still, the sophistication and breadth of products is limited
by Bank of Baroda compared with the choices offered by players in Wealth Management
markets. Also, bank offers wealth management products and not services. The income
generated through these products to the bank is purely commission based. No fee is being
charged for the advices given to customer for investment for their rupee. Therefore the
income generated through these products is minimal.
In comparison to other competitors bank has no dedicated department or specialised
team of Wealth management (consisting of relationship manager , service manager etc)
assigned to branches selling Wealth Management products. Bank has introduced project
Navnirman for organizational restructuring aimed at transforming the banks branches into
modern sales and services outlets. In these structural changes branch is to be divided into
back office and customer service departments. Also various individuals have been identified
as Sales Manager, Relationship Manager etc with pre defined roles and responsibilities
including cross selling and up selling of products. The implementation is this initiative is still
in process. Major limitations for this initiative is mainly reluctance of employees specially old
to accept the structural change and mould according to the new role defined for them. Second

68

major reason is no sufficient training to employees and monetary incentives are provided too
keep them motivated. Cost has to be incurred in training and hiring employees for wealth
advisory services. Given the nascent stage of the Indian wealth management industry, firms
face a shortage of trained advisors. This problem is further aggravated by the high rate of
employee attrition. Developing and retaining highly qualified advisors will be critical. Bank
will need to work out a retention strategy for their advisors as demand of resources rapidly
exceeds supply. Stemming attrition is critical because when advisors leave the firm, they take
a significant portion of their client base and assets with them.
Considering all this , the entry of Bank of Baroda in the Wealth Management industry cannot
be neglected. Given the phenomenal brand equity, reach, old corporate relationships and
ability to invest in top-of-the-line technology platforms, Bank of Baroda can be a formidable
competitor, particularly in the mass affluent segment.

69

7.2

RECOMMENDATION

It is recommended that Bank take a long-term view while evaluating potential return on
investment.

Build your brand and focus on overcoming the trust barrier.

Establishing trust is a vital component for any successful brand-building exercise.
Invest in advisor technology to improve advisor productivity and retention.
Evaluate a partnership-based model, coupled with innovative use of technology, to
increase reach.
Focus on transparency and compliance, while targeting customers with attractive,
segment focused products.

The wealth management model is based on a high-touch client relationship, and,

therefore, establishing a physical presence is critical.
Customers demand flexibility in how, where and when they access desired information
and a deeper understanding of alternatives before making final investment decisions.
Therefore bank need to provide sophisticated analytics and decision making tools to equip
these individuals with the insights required to fulfill their investment needs.This will also help
in investor education and contribute to brand-building efforts.
Promotion of investor education can help in long-term relationship building. Greater
financial awareness will also help in informed decision making and will reduce the chances of
fraud. Creation of maximum awareness about the Wealth Management offerings among the
existing as well as potential customers. Investor education programs could deliver information
pertaining to various asset classes and the associated risks, market structures and benefits of
each. Programs must be tailored, allowing for differences in the maturity and experience
levels of investors. In addition, programs should cover common fraudulent practices rampant
in the industry and include precautionary measures that investors could take to avoid falling
victim to such practices.
Investments in employee training and qualification will be vital for firms looking to
stay ahead in the game, as employees will act as advisors and are the primary touch points for
investors. Well-trained advisors can be especially critical in high-touch relationships in the
case of ultra-high net worth individual (UHNWI) clients. Qualified advisors will be the best
brand ambassadors for the Bank seeking to gain a competitive edge against established
players.
Monetary incentives should be provided to the employees for conducting wealth
management services to keep them motivated. Incentives should be linked to performance of
customers investments to avoid miss-selling. Wealth management firms offering services in
India will need to build flexibility into their operating models and processes in order to adapt
to frequent changes in the regulatory landscape. Shifting to a profit-sharing model (where the
advisors fees are based on the overall performance of the portfolio) would help mitigate these
issues to some extent.

70

Bank can team up with the local players like with wealth specialists, professional
CAs, private investment firm from developed markets to enhance their product and service
offerings.
Superior advisor technology has the potential to greatly enhance advisor productivity,
by minimizing the time spent on administrative and compliance activities, thus allowing
advisors to better focus on client servicing. Advisor platforms that offer lead management,
portfolio management, financial profiling, asset allocation and transaction management
capabilities can integrate multiple touch points and improve advisor experience. Adoption of
these platforms will also reduce time to market and help in providing differentiated services
based on client segments.
Embracing Mobility solutions will provide the bank with the ability to conduct
business in locations that are not covered by the branch network. They also provide financial
advisors with the flexibility to work from anywhere and provide them critical information on
a real-time basis. Also, as the target segment for wealth management products is fairly young
and fluent in the use of technology, mobility solutions will help avoid situations where the
customer is better aware than the bank, contributing to higher customer satisfaction.
Internet and mobile technology penetration is deep among the target segment and has
the potential to exponentially increase the reach of wealth management services. Employing
these technologies will also help bank serve customers in a cost-effective manner and will
enable them to reach out to the larger mass affluent segment. With the of 3G services in hand,
wealth managers have the potential to connect with clients via video telephony, further
reducing the need for them to establish an extensive physical presence.
Some efforts to be taken at branch level:

An effort towards customer need analysis and accordingly suggesting investments

suitable to their financial needs.

Building strong customer relationship through providing efficient services which

would further enhance the business on the bases of word of mouth advertising.

More usage of social media like phone banking , internet banking ,sms banking for
being easily accessible and for better grievance redresal .

Aggressive marketing to be adopted in case of Wealth Management products too.

Proper co-ordination with India first life insurance and Baroda pioneer mutual fund
sales representatives for customer convenience like fixed day and time of their visits to
branch so the customer queries can be solved face to face.

More use of innovative ideas to increase up selling and cross selling of these products
as being different than competitors is the need of the hour.

A specialised department for wealth management including wealth experts and advisors
can be regulated in major metro Politian cities with a centralized Data centre to handle all the
71

clients of that particular city removing branches as intermediaries. Data can be collected from
all the branches about the customers and targeting of customers can be done directly through
data centers by way of electronic media or telephonically. Customers can be targeted above
a threshold limit. A team of specialised officers can then schedule meetings in branches to
meet their investors to address their doubts and grievances periodically.
Also cost effectives measures can be adopted to reduce the cost incurred on Wealth
Management products. For example, front and back covers of pass books can be used for
advertising new product offerings , advertising on cover pages of annual reports etc this
would create awareness about the products and also reduce cost. Also focusing more on
advertising through websites , messages , emails and adopting more technological driven
approach for advertising these products would be cost effective.
The initial cost on applying these measures would be more than the income generated
through these services. Allocating a separate personal or department for wealth management,
converting banks approach from providing wealth management products to providing wealth
management services would not be cost beneficial, the cost incurred would be more than the
income generated. But there exist a possibility that if expenses are incurred on applying the
aforesaid measures the income generated may increase due to focused approach. This one
time expenditure incurred for further enhancement of wealth management can prove to be an
investment with profitable returns in long run.
The wealth management industry in India is poised for significant expansion, given the
favorable market landscape and expected regulatory boosts for the sector. This provides
exciting growth opportunities which will drive rapid market expansion, coupled with an
increase in the number of industry participants. To successfully tap into this potential, Bank of
Baroda must undertake a customized approach, taking into account the specific attributes of
the Indian market. This will need to be supported by a robust and cost-effective business
model focused on improved transparency and compliance, synergistic partnerships and
efficient technology solutions.

72

Chapter - 8
ANNEXURES

8.1

Questionnaire For Branch Staff on WEALTH MANGEMENT

DATE

:_______________________________.

NAME OF THE BRANCH :_______________________________.

NAME

:_______________________________.

DESIGNATION

:_______________________________.

Questionnaire
1. Do you have Wealth Management services in your Branch?
a) Yes
b) No
2. What Products are offered under Wealth Management in your Branch?
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)

Fixed Deposits
Mutual Fund
Equity
Commodities
Art Fund
Real Estate
Insurance Product
Structured Product
Gold
Other(specify)
_________________________________________________________.

3. What is the approximate number of customers using services provided under Wealth
Management?
a)
b)
c)
d)
e)

Below 1000
1000-5000
5000-10000
10000-15000
15000 and above

73

4. What is the Approximate Income generated through Wealth Management services in your
Branch?
a)
b)
c)
d)

Below 30000
30000-50000
50000-100000
100000 and above.

5. Do you have a dedicated department or an individual responsible for Wealth Management

Services?
a) Yes
b) No
If yes mention the name of the person or head of the department
_____________________________________________.

6. What are the major promotional activities taken for products of Wealth Management?
__________________________________________________________________________.

7. What Strategies are applied to maximize the income generated through wealth management
services?
__________________________________________________________________________.

8. Which is the most preferred product by customers under wealth management?

__________________________________________________________________________.

9. Possible reasons for such preference?

__________________________________________________________________________.

10. What are the major constraints faced by the bank in marketing and selling the Wealth
management products?
___________________________________________________________________________.

74

11. Expectations regarding support by BANK OF BARODA

selling of other products?

to facilitate marketing and

__________________________________________________________________________.

12. Future plans for development of Wealth management?

________________________________________________________________________.
8.2

Questionnaire on Wealth Management in BANK OF BARODA.

NAME (optional)

:____________________________________

Date

:_____________________________________

CONTACT NO.

: ____________________________________

EMAIL ID

:_____________________________________

STATUS:
a) Married
b) Unmarried
Gender :
a) Male
b) Female
Profession:
a)
b)
c)
d)
e)

Service
Professionals
Self-employed
Housewife
Other

Age:
a)
b)
c)
d)

30 and below
31-50
51-60
60 and above

Approximate annual income of the household:

a) 500,000 and below

75

b) 500,000-10,00,000
c) 10,00,000-15,00,000
d) 15,00,000 and above.
1. Over the next several years, you expect your household annual income to:
a)
b)
c)
d)
e)

Stay about the same

Increase substantially
Grow moderately
Decrease moderately
Decrease substantially

2. What do you expect to be your next major expenditure ?

a)
b)
c)
d)
e)

Buying a house, investment in real estate, car etc.

Paying for a college education.
Capitalizing a new business.
Providing for retirement.
Other.

3. When do you expect to use the bulk of the money you have been accumulating in your
Investments?
a)
b)
c)
d)

At any time now so a high level of liquidity is important.

Probably in the near future 1 to 5 years from now.
In 6 to 10 years.
Probably in 11 to 20 years from now.

4. How well do you understand investing in the markets?

a) I am a novice. I dont understand the markets at all.
b) I have basic understanding of investing. I understand the risks and basic investment
concepts like diversification.
c) I have an amateur interest in investing. I have invested earlier on my own. I
understand how markets fluctuate and the pros and cons of different investment
classes.
d) I am an experienced investor. I have invested in different markets and understand
different investment strategies. I have my own investment philosophy
5. Generally where do you invest your money ?
a)
b)
c)
d)

Fixed Deposit
Mutual Fund
Equity
Commodities

76

e)
f)
g)
h)

Real-Estate Fund
Insurance product
Structured product
Other

6.Which Investments do you hold with BANK OF BARODA?

a)
b)
c)
d)
e)

India First Life Insurance.

National Insurance(Mediclaim)
Baroda Health.
Mutual Fund.
Deposits.

7.Are you availing the following services offered by Bank of Baroda:

a) ASBA
b) e-broking.
8.How satisfied are you with the overall products of BANK OF BARODA?
a)
b)
c)
d)
e)

Very satisfied
Somewhat satisfied
Neutral
Somewhat dissatisfied
Very dissatisfied.

9. Apart from BANK OF BARODA in which Banking/Financial institutions you have

investments in ?
a) Private and Foreign Banks.
________________________________________________________.
b) Public Sector Banks
________________________________________________________.
c) Financial Institutions.
________________________________________________________.
d) Co-operative Banks
________________________________________________________.
e) Other
________________________________________________________.
10.Are you aware of all the services provided by BANK OF BARODA under Wealth
Management?
a) Yes
b) No

77

11. What is your primary Investing objective?

a) Safety :- with low return on investment and which are risk averse.
b) Growth: - invested amount to grow which are subject to taxes , the percentage of
which varies according to the number of years of investment.
c) Fixed income :- investments generating a regular and fixed flow of income .
d) Tax exemption:- investing in financial products to solely reduce the tax liability and
long term profits.
e) Liquidity :- investments which can be converted into cash easily and can be used for
emergencies.
12. Which of these plans would you choose for your investment rupee?
a) You would go for maximum diversity, dividing your portfolio among all available
investments, including those ranging from high return; high risk to low return; low
risk.
b) You are concerned about putting all your eggs in one basket. So you would diversify
your portfolio amount into investments with high rates of return , moderate risk and
Low risk.
c) You would put your investment rupee into the investment with the high rate of return
with high risk.
13. Assuming you are investing in a stock mutual fund, which one do you choose?
a) A fund with companies with the potential to make signicant technological
breakthroughs, and whose stocks are still at their low initial offering prices.
b) A fund that only invests in established, well-known companies that have a potential
for continued growth.
c) A fund devoted to blue chip", highly diversied stocks that pay dividends.
14.For many investors, the possibility of losing money is a main concern. How do you
feel about investment losses?
a) I check the value of my investments quite often so I can sell quickly if they begin to
lose money.
b) Daily losses in the value of my investments make me uncomfortable, but not
uncomfortable enough to sell. If losses occur over several months, I would probably
sell.
c) Short-term losses in the value of my investments do not bother me. I would wait an
entire year before making changes.

78

d) I understand that investments can have occasional negative annual returns. However, I
have a higher chance of reaching my investment goals if I stick with my portfolio over
the long term. I would not make changes.

15. Rate the following for Bank of Baroda Wealth Management Services:
Very
satisfied

Somewhat
satisfied

Neutral

Somewhat
Dissatisfied

Very
Dissatisfied

Understanding your needs

Meeting your needs
Following up reliably
Being accessible
Interacting efficiently
Discussing investments
knowledgeably
Communicating in a
timely manner
Meeting your Investment
Objectives
16. Why did you choose BANK OF BARODA:
a)
b)
c)
d)
e)
f)
g)
h)
i)

Overall reputation of the bank.

Referral
Firms Investment Style
Location and convenience.
Transparency
Customer Service
Recommended by other professional
Product offerings
Other (specify)______________________

17. Reasons for Choosing Other Institutions Over Bank of Baroda for Wealth
Management?
a)
b)
c)
d)

Better Interest rates.

Tax benefit
Better services
Strong Customer relationship management.

79

e) Dedicated Wealth Management team

f) Higher Insurance Premiums.
g) Other (Specify):_____________________________________________________

18. What enhancements or new services would you like to see from Bank of Baroda
Wealth Management?
__________________________________________________________________________.

80

REFERENCES AND BIBLIOGRAPHY

1. www.bankofbaroda.com
2. www.moneycontrol.com.
3. www.iciciwealth.com
4. www.hubbis.com
5. www.educorporatebridge.com
6. www.motilaloswal.com
7. www.capgemini.com
8. World Wealth Report - Merrill Lynch
.
9. Investment Strategy - No.6 Societe Generale Asset Management.
10. www.kotaksecurities.com
11. www.hsbc.co.in
12. www.pnbindia.in
13. www.investopedia.com

81