Functions
The Bank carries on and transacts the business of banking. Sub section (5) of section 3 of the
Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 mandates that Bank of
Baroda as a “corresponding new bank” shall carry on and transact the business of banking as
defined in clause (b) of section 5 of the Banking Regulations Act 1949 and may engage in one or
more of the other forms of business specified in sub-section (1) of section 6 of that Act.
Section 6 of Banking Regulation Act, 1949 reads as follows:-
"Forms of business in which banking companies may engage -
In addition to the business of banking, a banking company may engage in any one or more of the
following forms of business. Namely:-
The borrowing, raising, or taking up of money; the lending or advancing of money either upon or
without security; and drawing, making, accepting, discounting, buying, selling, collecting and
dealing in bills of exchange, hundies, promissory notes, coupons, drafts, bill of lading, railway
receipts, warrants, debentures, certificates, scrips and other instruments, and securities whether
transferable or negotiable or not; the granting and issuing of letters of credit, travellers’ cheques
and circular notes; the buying, selling and dealing in bullion and specie; the buying and selling of
foreign exchange, including foreign bank notes; the acquiring , holding, issuing on commission,
underwriting and dealing in stock, funds, shares, debentures, debenture stock, bonds, obligations,
securities and investments of all kinds; the purchasing and selling of bonds, scrips or other forms
of securities on behalf of constituents or others; the negotiating of loans and advances; the
receiving of all kinds of bonds, scrips or valuables on deposit or for safe custody or otherwise; the
providing of safe deposit vaults; the collecting and transmitting of money and securities;
Acting as agents for any government or local authority or any other person or persons; the carrying
on of agency business of any description, including the clearing and forwarding of goods, giving
of receipts and discharges and otherwise acting as an attorney on behalf of customers, but
excluding the business of a [Managing Agent or Secretary and Treasurer] of a company;
Contracting for public and private loans and negotiating and issuing the same;
The Effecting, Insuring, Guaranteeing, Underwriting, participating in managing and carrying out
of any issue, public or private, of state, municipal or other loans or of shares, stock, debentures or
debenture stock of any company, corporation or association and the lending of money for the
purpose of any such issue;
Carrying on and transacting every kind of guarantee and indemnity business;
Managing, Selling and Realising any property which may come into the possession of the company
in satisfaction or part satisfaction of any of its claims;
Acquiring and holding and generally dealing with any property or any right title or interest in any
such property which may form the security or part of the security for any loans or advances or
which may be connected with any such security;
Undertaking and Executing trusts.
Undertaking the administration of estates as Executor, Trustee or otherwise;
Establishing and supporting or aiding in the establishment and support of associations, institutions,
funds, trusts, and conveniences calculated to benefit employees or ex-employees of the company
or the dependents or connections of such persons; granting pension and allowances and making
payments towards insurance; subscribing to or guaranteeing moneys of charitable or benevolent
object or for any exhibition or for any public., general or useful object.
The acquisition, construction, maintenance and alteration of any building or works necessary or
convenient for the purposes of the company;
Selling, improving, managing, developing, exchanging, leasing, mortgaging, disposing of or
turning into account or otherwise dealing with all or any part of the property and rights of the
company;
Acquiring & Undertaking the whole or any part of the business of any person or company, when
such business is of a nature enumerated or described in this sub section.
Doing all such other things as are incidental or conducive to the promotion or advancement of the
business of the company;
Any other form of business which the Central Government may, by notification in the official
gazette, specify as a form of business in which it is lawful for a Banking Company to engage."