The Bank of Baroda, or BOB, is one of the largest banks in India, and it’s government-owned and operated. In fact, it’s the oldest commercial bank in India, and its headquarters are located in Vadodara. Let’s see how it stacks up against private banks like ICICI Bank and State Bank of India, two other large financial institutions in the country.
What is Bank of Baroda (BOB)?
Bank of Baroda (BOB) is a private-sector bank based in India. BOB offers personal and business banking services, including saving and current accounts, home loans, car loans, term deposits, personal loans, and insurance. The history of the Bank of Baroda dates back to 1906 when it was first established as Bank of Bombay by Rai Bahadur Mavji Bhaiji Sheth.
Today, the Bank of Baroda has a network of more than 1600 branches in India and over 80 offices abroad across 19 countries. The bank also owns several subsidiaries, including life insurance company Bank of Baroda Life Insurance Company Limited, asset management firm BOB Asset Management Company Ltd., investment banking firm Merrill Lynch India Holdings Pvt. Ltd., and commercial vehicles manufacturer Bharat Benz.
Difference between Private & Public Banks
The basic difference between a public and private bank is that: Public Banks are owned by the government (central bank) while Private Banks are owned by individual people.
Other than that, there are several more differences between public and private banks. Public Banks are mostly regulated by the government (Reserve Bank of India), whereas Private Banks work under a controlled environment called Minimum Reserve System.
BOB – A Brief History
Bank of Baroda was founded in 1906 in Bombay, India. It initially began as Bank of Bombay, but by 1921 it merged with two other banks to form Bank of Baroda and Central India Bank Ltd. Its main offices are now located in Vadodara, Gujarat.
In 1944, during India’s Independence movement, the Bank of Baroda became a public limited company and was subsequently listed on the Bombay Stock Exchange. It remains headquartered in Vadodara, where it also has regional offices. Today, it is one of India’s top 20 banks by market capitalization.
Difference Between BOB & SBI
Banks in India fall into three types – State Bank of India (SBI), Regional Rural Banks (RRBs), and Public Sector Banks. SBI is a government bank while other banks are private, excluding RRBs. However, the State Bank of Patiala, State Bank of Hyderabad, and State Bank of Mysore are semi-government banks that have been privatized by acquiring majority shares from state governments but are still dependent on them for funds.
The minimum capital required to start a bank in India ranges from ₹ 100 crores for a public sector bank to ₹ 50 crores for a private sector one. The ownership details depend on which type of bank you want to establish. While all banks have to be owned by individuals, a public sector bank can have up to 10% foreign equity, while private banks can have 26%. The government also owns and controls RRBs and several non-banking financial companies.
CEO and MD of BOB
Bank of Baroda was founded in 1908 as a private bank and has only recently become a government-owned corporation. It is ranked as one of India’s top banks by asset size, deposits, profits, branches, and workforce. It is also among Asia’s largest financial institutions by assets. It offers several product lines to retail customers and corporate clients. And it runs on technology provided by the Microsoft Azure cloud platform.
Name -Mr. Ravi Kumar Khanderia has been appointed as Managing Director and Chief Executive Officer (CEO) of Bank of Baroda. The Appointments Committee of Cabinet (ACC) has approved his appointment for a period up to 31st August 2021 or until further orders, whichever is earlier.