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SWOT analysis of Bank of Baroda (BOB)

SWOT analysis of Bank of Baroda (BOB)

This is a detailed SWOT analysis of Bank of Baroda (BOB). It aims to analyse the strengths and the weaknesses of Bank of Baroda. It also aims to explore the opportunities and the threats facing the bank. Bank of Baroda is an Indian multinational banking and financial services company, headquartered in Baroda, Gujarat, India. It was founded by the Maharaja of Baroda (Maharaja Sayajirao Gaekwad III) in 1908.


Strengths of Bank of Baroda (BOB)

The strengths of Bank of Baroda are quite numerous. It has many years of experience, a wide network of branches across the country, and a vast customer base. It also offers customers a broad range of services such as loans, deposits, credit cards, insurance, digital products, government business schemes, and investment products.


Bank of Baroda is an Indian state-owned institution. It was nationalised by the Government of India in 1969. It operates across 18 countries and serves 131 million customers (Bank of Baroda, 2022). It has thousands of branches, and ATMs in India. Its total asset is approximately 11.55 trillion Indian rupees (Statista, 2021). In fact, it is the second-largest public sector bank after State Bank of India.


The service portfolio of Bank of Baroda is quite extensive. Its main services are categorised as retail banking, corporate banking, remittances, and wholesale banking. Savings account, current account, home loan, personal loan, car loan, education loan, fixed deposit, recurring deposit, credit card, debit card, mobile banking, and the Internet banking are some of the services provided by the bank.


The merger of Vijaya Bank and Dena Bank into Bank of Baroda in April 2019 has given Bank of Baroda a mega bank status. It has also strengthened the position of the bank in India. The merger should help it improve its customer base and compete efficiently at the global level.


Bank of Baroda’s CSR activities are very good as well. It carries out several activities e.g. youth skill development, social welfare, empowerment of women, economic development, health care, and education.


Weaknesses of Bank of Baroda (BOB)

A key part in this SWOT analysis of Bank of Baroda is the discussion on weaknesses. Though Bank of Baroda is an international bank, its most focus is on its home market, India. This over reliance is a weakness and may turn out to be costly for it should there be any massive economic challenges affecting the Indian economy.


Great customer service is a key for a service organisation to thrive rapidly. However, an investigation into review sites show that most of Bank of Baroda’s customers are very unhappy with its customer service quality. Customers have expressed frustration about staff’s late response, inability to activate customers’ cards, and lack of cooperation. In fact, some of the reviews on Trustpilot are troublesome for the bank (Trustpilot, 2022).


A technical glitch in 2017 caused thousands of accounts of Bank of Baroda’s customers to be wrongly debited (Times of India, 2017). The money was debited in the form of various bank charges. The bank’s migration to a new version of the core banking system was blamed for the glitch; however, it should be noted that it created panic among thousands of customers and affected the image of the bank. The bank was also caught up in an alleged Rs 6000 crore forex scam in 2015.


Opportunities for Bank of Baroda (BOB)

Bank of Baroda can grow further in India by opening new branches or taking over smaller banks and or other financial institutions. It is currently operating across 18 countries; and therefore, opening new operations in more countries and territories is worth exploring.


There have been huge changes in consumer behaviour in India over the years. Adult Indians carry out financial transactions more through their bank accounts than through cash. Many people have opened bank accounts in the recent years as well and the march continues with the full speed. This is a good opportunity for Bank of Baroda further penetrate the home market.


An opportunity for Bank of Baroda is to increase its social media presence. Though its Facebook page has a lot of followers, so is not the case with its Instagram page. More presence on social media and other relevant online platforms should help it reach new customers. This could also create a stronger public image for the bank which should also translate into more businesses.


Threats to Bank of Baroda (BOB)

Threat is the last element to address in the SWOT analysis of Bank of Baroda. Bank of Baroda faces a number of strong competitors in the Indian market such as State Bank of India, Punjab National Bank, ICICI Bank, Union Bank of India, Canara Bank, IDBI Bank, Syndicate Bank, and Allahabad Bank to name but a few. It also competes with big global banking brands in its international markets. If it is not careful, it may lose customers to its competitors. Therefore, it must ensure that it is keeping up with what its competitors are doing in order to stay competitive.


Legal threats may turn out to be costly and challenging for Bank of Baroda. For instance, it was fined ₹11 million (equivalent to US$837,000) in 2017 by the South African Reserve Bank (SARB) for allegedly not complying with international money laundering regulations. Due to this and other challenges, Bank of Baroda announced its exit from South Africa. Similarly, it was fined over Rs 13 crore by the Central Bank of the United Arab Emirates (UAE) for violating anti-money laundering law (The Economic Times, 2021).


We hope the article ‘SWOT analysis of Bank of Baroda (BOB)’ has been helpful. If you have liked it, please share it with others to support our educational work. You may also like reading SWOT analysis of Barclays and SWOT analysis of HSBC. Other relevant articles for you are:

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Last update: 01 February 2022


Bank of Baroda (2022) About us, available at: (accessed  01 February 2022)

Statista (2021) Total assets Bank of Baroda India FY 2018-2021, available at: (accessed 01 February 2022)

The Economic Times (2021) UAE central bank slaps over Rs 13 crore monetary sanction on Bank of Baroda, available at: (accessed 01 February 2022)

Times of India (2017) Tech glitch triggers panic among BoB depositors, available at: (accessed 12 December 2019)

Trustpilot (2022) Bank of Baroda, available at: (accessed 01 January 2022)

Photo credit: Wikipedia

Author: M Rahman

M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.

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