Bank of India was founded on September 07, 1906 by a group of eminent businessmen from Mumbai. The bank was under private ownership and control till July 1969 when it was nationalized along with 13 other banks. Beginning with one office in Mumbai, with a paid-up capital of Rs 50 lakh and 50 employees, the bank has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations. In business volume, the bank occupies a premier position among the nationalized banks.
The bank has 3101 branches in India spread over all states/ union territories including 141 specialized branches. These branches are controlled through 48 Zonal Offices. There are 29 branches/ offices (including three representative offices) abroad. The bank came out with its maiden public issue in 1997 and follow on Qualified Institutions Placement in February 2008. Total number of shareholders as on September 30, 2009 is 2,15,790.
While firmly adhering to a policy of prudence and caution, the bank has been in the forefront of introducing various innovative services and systems. Business has been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. The bank has been the first among the nationalized banks to establish a fully computerized branch and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The bank is also a founder member of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for evaluating/ rating its credit portfolio.
The bank's association with the capital market goes back to 1921 when it entered into an agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an association that has blossomed into a joint venture with BSE, called the BOI Shareholding Ltd. to extend depository services to the stock broking community.
The bank has presence across 4 continents and 18 countries covering all the major financial centres such as London, New York, Paris, Tokyo, Singapore and Hong Kong. As on March 31, 2011, bank has a network of 29 branches and offices abroad, including 5 representative offices.
The bank has also received permission from RBI to expand its overseas operations in Bangladesh, Canada, China, Egypt, New Zealand, Madagascar, Qatar, South Africa, UK (Leeds and Coventry), UAE and Vietnam. In New Zealand, the subsidiary Bank of India (New Zealand) Limited has been registered as a bank by the local regulators RBNZ on March 31, 2011. The bank has a Global Processing Centre (GPC) at Singapore with identical IT systems at Bank’s foreign branches, thereby improving the Management Information system and the customer service.
The bank is acting as Mandated Lead Arranger (MLA) and Joint Book Runner (JBR) for Multicurrency International Syndication loans and has arranged loan in USD, JPY, EURO and GBP currencies for Indian Corporates for their expansion / acquisition and Joint Ventures, covering a wide range of industries. The bank has also opened Global Remittance Centre (GRC) in Mumbai. The inward remittances, SB accounts, NRE/NRO Account opening of NRI customers have been centralized at GRC. The bank has initiated the process for establishing a hub for the purpose of handling the documentation part of Trade Finance portfolio.
Products & Services
Bank of India provides a wide range of products and services in deposits, loans, NRI banking, cards, and online services such as Internet banking. Following are the new products and services introduced:
Bank’s Subsidiaries / Associates
BOI Shareholding Ltd. (BOISL)
Bank’s association with the Capital Market spans a period of nine decades. The clearing and settlement function of Bombay Stock Exchange (BSE) was being handled by the Bank since 1921. In 1989, Bank set-up ‘BOI Shareholding Ltd. (BOISL)’, joint venture with BSE, to manage the clearing house activities of the Stock Exchange. The bank is holding 51% of its paid up capital of Rs 2 crore.
The company has been carrying out the rolling and weekly settlements of trades executed by member brokers operating on the Exchange, BOISL is also a Depository Participant (DP) of both the Depositories viz. the National Securities Depository Ltd. (NSDL) and the Central Depository Services (India) Ltd. (CDSL) and provides depository services to the clearing members and investors. BOISL is the first Securities Clearing House in the country to have been awarded the ISO 9001-2000 ISO Certification.
Securities Trading Corporation of India Ltd. (STCI)
STCI Ltd. is one of the leading primary dealers in the country. It was established in 1999 with the objectives of widening the gilt and other debt security market through development of a vibrant secondary market. Bank of India with 29.96% holding is the single largest stakeholder in STCI having paid-up capital of Rs 380 crore. The company is an associate company of the bank in terms of Accounting Standards 21 (AS-21) of the Institute of Chartered Accountants of India.
With growing perception that primary dealership by itself is no longer an attractive business, STCI decided to hive off the primary dealership business to its new subsidiary namely STCI Primary Dealer Ltd. which commenced its operations from June 25, 2007. The subsidiary which started on a cautious note has made steady progress since then.
After formation of subsidiary, STCI took up activities of IPO funding, margin funding, commodity future trading, Asset Management, investments in short term corporate loans / CP, equity trading.
Star Union Dai-ichi Life Insurance Company Ltd. (SUDLife)
Bank of India, Union Bank of India and Dai-ichi Mutual Life Insurance Company, Japan have formed ‘Star Union Dai-ichi Life Insurance Company’ to take advantage of the growing insurance market and to provide quality assured insurance to its clients spread across the length and breadth of the country. The company has commenced insurance business since February 2009. BOI holds 48% in the company’s paid up capital of Rs 250.00 crore.
Union Bank holds 26% stake and Dai-ichi Mutual Life Insurance Company, Japan holds 26% in addition to the bank’s stake. In terms of the Joint Venture Agreement, the bank has transferred its 3% stake in favour of Union Bank.
ASREC (India) Ltd. (Associate)
The company was floated by the Specified Undertaking of the Unit Trust of India to undertake securitization and asset reconstruction activities. The company was granted Certificate of Registration by RBI under the SARFAESI Act, 2002 in the second half of FY 2004-05 and has since commenced full-fledged operation. Currently the Bank is holding 26.02% stake, in the equity capital of the company which is Rs 27.06 crore.
Indo Zambia Bank Ltd. (IZB)
IZB is a joint venture of three Indian Banks viz. Bank of India, Bank of Baroda, Central Bank of India and Government of Zambia. Each of the Indian Banks holds 20% of the share capital, whereas Government of Zambia holds 40% of the share capital. Indo-Zambia Bank Ltd is fine example successful joint venture. It enjoys the patronage of two friendly republics, the Government of Republic of Zambia and Government of India.
PT Bank Swadeshi Tbk, Indonesia
During FY 2007-08 the bank acquired a stake of 76% in PT Bank Swadeshi Tbk at a total consideration of Indian Rs 3.77 crore. The Bank has three Directors on the Board of PT Bank Swadeshi Tbk.
Bank of India (Tanzania) Ltd.
Bank of India (Tanzania) Ltd. is wholly owned subsidiary of the Bank and commenced operations on June 16, 2008 with first branch at Dar-Es-Saleam.
Bank of India (New Zealand) Ltd.
Bank of India (New-Zealand) Ltd. is wholly owned subsidiary of the bank with Rs 176.95 crore paid up capital. The bank has received a license to operate as a bank from Reserve Bank of New Zealand on March 31, 2011. The operations are likely to start shortly.
Keeping its growth aspirations in mind, the bank embarked upon a new bold vision Sankalp 10,000. Sankalp 10,000 rests on the three pillars of customer first, building winning teams and high performance driven culture. Under Project Sankalp, the organizational structure of the bank has been redesigned in September 2010 with its division in two distinctly separate groups of businesses i.e. (a) National Banking Group and (b) Wholesale and International Banking Group in order to have a more focused attention to each business segment. The two groups are headed by the two executive directors of the bank.