bank of india

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‘Implementation of Information System Security Policies’ from the Institute for Development &

Research in Banking Technology (IDRBT), Hyderabad.

It has also been recognised as the ‘second best bank for Excellence in lending to Tiny Sector’ for the year 2005-06 by the Government of India.

BOI generated revenues of US$ 1,822 million in the financial year 2006, up from US$ 1,632.7 million in the previous year. 15 per cent of the Bank’s revenue comes from its international operations.

The Bank had a work force of 41,893 employees as on 31 Sept 06. It is listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited.

Global Footprint of Bank of India

BOI has established a global presence through a network of 23 branches and three representative offices in various geographies – the USA, the UK, Japan, China, France, Singapore, etc. It was the first Indian bank to expand its business globally by establishing a branch in London in 1946 and by venturing into Europe in 1974.

in the United States of America

Mode of Operation

BOI operates in the US through its branch office in New York and an agency at San Francisco.

Overview

Bank of India started its operations in the USA

Company Background

Bank of India (BOI) was established in September 1906, in Mumbai, by a group of distinguished businessmen.The bank provides a wide range of banking and financial services to corporate and retail customers. In addition to basic banking services, the bank offers various financial services such as credit cards, merchant banking, leasing, housing finance, stock broking, venture capital, mutual funds, etc.The bank has recently completed its centenary year in September 2006.

The Bank now has 2,644 branches in India. It has established specialised branches for various business segments - credit, foreign exchange, capital market, commercial and personal banking and services for non-resident Indians. It has also set up branches for small-scale industries, asset recovery, hi-tech agriculture finance, lease finance and treasury.

Bank of India is known to be a pioneer in the Indian Banking System – especially in the area of technology or credit dispensation/credit management. BOI was one of the founders of the Society for Worldwide Inter-bank Financial Telecommunication (SWIFT) in India. In 1989, it became the first nationalised bank to establish a fully computerized branch and ATM facility in India. It is amongst the top Indian banks that provide export credit to industries (such as for diamond export). It introduced the Health Code System for the evaluation of its credit portfolio in 1982.

BOI recently received the Best Bank Award for 14

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in December 1977 by opening an agency office in San Francisco.Thereafter, it established a full- fledged branch in December 1978 in New York.

The New York branch of the BOI is a member of the Federal Deposit Insurance Corporation (FDIC).

BOI generated revenues of US$ 16 million in the current financial year from the US market and has 51 employees in the US.

The business of the United States branch is focused on:

Certificate of Deposits:

The Bank offers attractive interest rates for Certificate of Deposits, which are one of the best rates offered by banks in the US.

Advances:

• US dollar loans to Indian corporates based in India.

• Loans to subsidiaries of Indian companies in the US.

• Loans and line of credit to US-based companies.

• Trade-related finance and services,

• Loans for acquisition of business in India and the US.

Trade-related services:

• Advising and adding confirmation to letter of credit of the branches in India and overseas, and to other banks on request

• Opening of letter of credits, and getting them confirmed by its branches

• Negotiating drafts drawn under letters of credit opened by Indian banks

• Discounting drafts drawn under DA term letters of credit opened by Indian banks

• Arranging issuance of guarantees through the bank’s branches in India

• Processing reimbursement claims

• Advisory services in respect of doing business with India, guidance on documentation for LCs emanating from India

15 Remittances:

• Cross-border remittances

• Rupee remittances to India

Corresponding Banking Services:

The New York branch offers Correspondent Banking Services to a number of Indian Banks besides the Bank’s own offices at different centers.

Currently, it has a workforce of more than 50 employees having expertise in the banking domain.

They also possess keen insights on the trade- related intricacies in India and the market scenario in the USA, thereby assisting investors better in establishing their foothold in the USA.

Success Factors

Technology Implementation

Bank of India is among the leading Indian banks to have adopted new technologies and providing better services to its consumers.The Bank continues to successfully offer high-quality technology-based products and services to its customers.This has helped the Bank in tapping the USA market. It has computerised all its branches and networked its foreign branches through the global processing centre in Singapore.

The Bank has successfully integrated technology to support applications such as tele-banking, internet banking, signature retrieval system, fax on demand, and remote access terminal services for its corporate clients. It has also instituted effective monitoring and control mechanisms to provide efficient services to its customers.

Wide Spectrum of Services

BOI is strategically targeting the Indian corporate and entrepreneurs residing in the USA and is providing them services to set up projects and make acquisitions in the USA. It facilitates a wide range of services in various business segments – deposits(C/Ds), corporate checking accounts, trade

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finance and trade-related services including remittances, business loans, cross-border loans to joint ventures and wholly-owned subsidiaries of Indian companies and ECBs.The Bank also provides India-related business services, such as the efficient, timely, and cost-effective transferral of funds to BOI accounts in India. It provides technologically advanced and customer-friendly services to its clients in the USA.

Extensive Network

BOI has a large and well-distributed network of branches in India as well as across the globe.

It has 2,644 branches spread across all states and union territories in India and 23 branches and three representative offices in various geographies – the USA, the UK, Japan, China, France and Singapore.

Future Plans

The improved trade relations between the US and India, along with India’s emergence as the global back office for service industries has resulted in increased demand for banking services. In keeping with this, BOI is planning to increase its presence in the US by opening branches at more locations.

It plans to target the Indian ethnic population through its new branch offices.

BOI also plans to enhance its services to Indian companies that are investing in the USA. It intends to leverage developments in implementation of technology developments and develop high-quality and customer-friendly products and services in order to increase its reach and gain competitive advantage.

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