Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — FY2013 Earnings Presentation
42 slides from Bank of Baroda's earnings presentation, May 13, 2013
Slide 1: Bank of Baroda: Well Poised for Growth
Bank of Baroda India’s Largest Nationalised Bank: Well Poised for Growth Performance Analysis: Q4 & Full Year , 2012-13 (FY13) Dr Rupa Rege Nitsure Chief Economist May 13, 2013
Slide 2: Bank of Baroda: Key Strengths
Bank of Baroda: Key Strengths … Bank of Baroda is a 104 years old State-owned Bank with modern & contemporary personality, offering banking products and services to Large industrial, SME, retail & agricultural customers across the country. Uninterrupted Record Overseas Business Modern & Contempora
Slide 3: Results At A Glance (FY13)
Results At A Glance (FY13) … •Global Business Size: Rs 8,02,069 crore on 31st Mar, 2013 [up 19.3%, y-o-y] •Market Share in Aggregate Deposits up from 3.70% in Mar’07 to 4.35% in Mar’13 •Market Share in Credit up from 3.53% in Mar’07 to 3.99% in Mar’13 •Global Loan-book: Rs 3,28,186 crore on 31st Mar
Slide 4: Domestic Branch Network
Domestic Branch Network …. No. of Domestic Branches •During the last five yrs, the Bank has 4,276 added 1,423 brs to its domestic network. 4500 3904 4000 3364 •During FY13, the Bank opened 373 new 3500 2853 2926 3100 brs and merged one branch in Jun’12. 3000 •During FY14, the Bank proposes to open 2
Slide 5: Rich Technology Platform
Rich Technology Platform…. •Bank’s entire domestic, overseas and RRB framework is CBS-compliant. • While all domestic branches are migrated on MPLS network, the new branches are directly opened in MPLS network. •Bank has IT facilities for online/offline account opening through Business Correspondent
Slide 6: Rich Technology Platform
Rich Technology Platform…. •Bank’s Mobile Banking (Baroda M-Connect) provides various facilities to its customers like balance- enquiry, mini-statements, linking of multiple accounts, funds’ transfer, bill payments, ticket booking, shopping, feedback facilities, etc. •The IMPS (Immediate Payment ser
Slide 7: Rich Technology Platform
Rich Technology Platform…. •Anti Money Laundering (AML) has been implemented in India and 22 of Bank’s overseas territories. •Online Trading (Corporate and Retail) has been implemented in India. •Bank has implemented an Integrated Global Treasury Solution in its major territories like U.K., UAE, Bah
Slide 8: Rich Technology Platform
Rich Technology Platform…. •Bank has created a Data Warehouse for providing flexible and interactive source of strategic information, CRM support, etc. to Top Management. • Bank has fully automated its Loan Processing (Retail, Agri and SME) modules for better and quick customer service. •Bank also p
Slide 9: Concentration (%): Domestic Branch Network
Concentration (%): Domestic Branch Network … Rest of India, 24.00 Gujarat, 20.00 Maharashtra, 12.00 UP & Uttaranchal, 22.00 South, 11.00 Rajasthan, 11.00
Slide 10: Pattern of Shareholding: 31st Mar, 2013
Pattern of Shareholding: 31st Mar, 2013 … As on 31st Mar, 2013 Corp. •Share Capital: Rs 422.52 crore Indian Bodies Public 4.8% 4.7% Others •No. of Shares: 421.26 million • 0.3% • Net worth: Rs 30,714 crore (up 17.0%, yoy) FIIs 17.2% • B. V. per share: Rs 729.11 (up 14.0%, yoy) •Return on Equity: 14.
Slide 11: Select Awards & Accolades in FY13
Select Awards & Accolades in FY13 •Bloomberg UTV Financial Leadership Award –Best PSU bank – 07.04.012, Mumbai •Best CIO Award of BFSI sector from Institute of Public Enterprises, 2012 – June, Hyderabad •The Sunday Standard FINWIZ 2012 Awards – 20.08.2012, New Delhi •Best Indian Bank – Large (Runner
Slide 12: Select Awards & Accolades in FY13
Select Awards & Accolades in FY13 •Forbes India Leadership Award – Best CEO Public Sector, 28.09.2012, Mumbai to the Bank’s CEO •CNBC TV18 – ‘India Best Banks and Financial Institutions Award 2012’ – Best Public Sector Bank, 17.10.2012, Mumbai. •Best Large Bank 2012 – Business World November 26th 20
Slide 13: India's Macro Health: FY13
India’s Macro Health: FY13 …. •India’s economic growth reached the decade’s low of 5.0% in FY13 on the back of stalled mining and manufacturing sectors, weaker agricultural performance due to deficient rains and moderation in business related services. •Headline (WPI) inflation declined from the ave
Slide 14: Business Expansion
Business Expansion Change Particular Y-O-Y Over Mar’12 Dec’12 Mar’13 (Rs crore) (%) Dec’12 (%) Global Business 6,72,248 7,14,051 8,02,069 19.3 12.3 Domestic Business 4,82,211 4,96,595 5,66,000 17.4 14.0 Overseas Business 1,90,038 2,17,456 2,36,069 24.2 8.6 Global Deposits 3,84,871 4,14,733 4,73,883
Slide 15: Business Expansion
Business Expansion Change Particular Y-O-Y Mar’12 Dec’12 Mar’13 Over (Rs crore) (%) Dec’12(%) Global advances (Net) 2,87,377 2,99,318 328186 14.2 9.64 Domestic Advances 2,02,075 2,01,208 224294 11.0 11.5 Overseas Advances 85,302 98,110 103891 21.79 5.9 Retail Credit 35,668 35,392 38,046 6.7 7.5 Of w
Slide 16: CASA Position
CASA Position Change Particular Y-O-Y Mar’12 Dec’12 Mar’13 Over (Rs crore) (%) Dec’12 (%) Global Saving Deposits 74,580 79,980 84,303 13.0 5.4 Domestic Savings 72,575 77,888 82,002 13.0 5.3 Deposits Overseas Savings 2,004 2,092 2,300 14.8 9.9 Deposits Global Current Deposits 28,944 27,958 35,678 23.
Slide 17: Bank's Profits & Its Components: Q4, FY12 & FY13
Bank’s Profits & Its Components: Q4, FY12 & FY13 Particular YOY Q4, FY12 Q4, FY13 (Rs crore) (%) Interest Income 8,119 9,072 11.7 Interest Expenses 5,321 6,258 17.6 NII (Spread) 2,798 2,814 0.6 Other Income 898 1,191 32.7 Staff Expenses 1,020 1,139 11.7 Total Expenses 6,965 8,080 16.0 Operating Prof
Slide 18: Bank's Profits & Its Components: FY12 & FY13
Bank’s Profits & Its Components: FY12 & FY13 Particular YOY FY12 FY13 (Rs crore) (%) Interest Income 29,674 35,197 18.6 Interest Expenses 19,357 23,881 23.4 NII (Spread) 10,317 11,316 9.7 Other Income 3,422 3,631 6.1 Staff Expenses 2,986 3,450 15.5 Total Expenses 24,466 29,754 21.6 Operating Profit
Slide 19: Deposit & Loan Costs: Q4 FY12 to Q4 FY13
Deposit & Loan Costs: Q4,FY12 to Q4,FY13 Particular (in %) Q4, Q1, Q2, Q3, Q4, FY12 FY13 FY13 FY13 FY13 Global Cost of Deposits 5.81 5.89 5.85 5.82 5.75 Domestic Cost of Deposits 7.17 7.30 7.36 7.33 7.41 Overseas Cost of Deposits 1.74 1.86 1.73 1.61 1.42 Global Yield on Advances 9.33 9.08 9.07 8.96
Slide 20: Investment Yields & NIMs: Q4 FY12 to Q4 FY13
Investment Yields & NIMs: Q4, FY12 to Q4,FY13 Particular (in %) Q4, Q1, Q2, Q3, Q4, FY12 FY13 FY13 FY13 FY13 Global Yield on Investment 7.53 7.71 7.79 7.75 7.74 Domestic Yield on Investment 7.69 7.83 7.92 7.88 7.85 Overseas Yield on Investment 3.84 4.91 4.64 4.67 5.05 Global NIM 2.96 2.73 2.71 2.65
Slide 21: Key Financial Ratios: FY13
Key Financial Ratios : FY13 •ROAA at 0.90% for FY13 •ROE at 14.59% for FY13 •NIM at 3.11% in Domestic Operations & at 2.66% in Global Operations •Provision Coverage Ratio at 68.24% as on 31st March, 2013 •CRAR (Basel II) at 13.30% & Tier 1 Capital at 10.13% as on 31st March, 2013 •Cost-Income Ratio
Slide 22: Non-Interest income: Q4 FY12 and Q4 FY13
Non-Interest income: Q4, FY12 and Q4, FY13 % Change (Rs crore) Q4, FY12 Q4, FY13 (Y-O-Y) Commission, Exchange, 344.69 376.41 9.2 Brokerage Incidental Charges 87.63 89.93 2.6 Other Miscellaneous Income 58.91 59.25 0.6 Total Fee-Based Income 491.23 525.59 7.0 Trading Gains 137.01 288.17 110.3 Profit o
Slide 23: Non-Interest income: FY12 and FY13
Non-Interest income: FY12 and FY13 % Change (Rs crore) FY12 FY13 (Y-O-Y) Commission, Exchange, 1,226.08 1,257.36 2.6 Brokerage Incidental Charges 316.23 337.41 6.7 Other Miscellaneous Income 253.86 263.68 3.9 Total Fee-Based Income 1,796.17 1,858.45 3.5 Trading Gains 606.67 617.29 1.8 Profit on Exch
Slide 24: Provisions & contingencies: Q4 FY12 and Q4 FY13
Provisions & contingencies: Q4, FY12 and Q4, FY13 Absolute (Rs crore) Q4, FY12 Q4, FY13 Change Provision for NPA & Bad Debts 926.19 1097.24 171.05 Written-off Provision for Depreciation on -271.31 211.16 482.47 Investment Provision for Standard Advances 188.79 220.35 31.56 Other Provisions (includin
Slide 25: Provisions & contingencies: FY12 and FY13
Provisions & contingencies: FY12 and FY13 Absolute (Rs crore) FY12 FY13 Change Provision for NPA & Bad Debts 1865.19 3449.44 1584.25 Written-off Provision for Depreciation on 236.33 225.46 -10.87 Investment Provision for Standard Advances 448.17 393.80 -54.37 Other Provisions (including 5.14 99.22 9
Slide 26: Bank's domestic treasury highlights: Q4, FY13
Bank’s domestic treasury highlights: Q4, FY13 • Trading Gains sequentially improved from Rs 82 cr in Q1 to Rs 112 cr in Q2 to Rs 136 cr in Q3 to Rs 288 cr in Q4 due to improving market dynamics. Even Forex Profits firmed up sequentially. • As of Mar 31, 2013, the share of SLR Securities in Total Inv
Slide 27: Highlights of Overseas Business: FY13
Highlights of Overseas Business: FY13 • During FY13, the Bank’s “Overseas Business” contributed 29.4% to its Total Business, 24.6% to Gross Profit and 34.2% to Core Fee-based income (i.e., Commission, Exchanges, brokerage, etc.) • Out of the Total Overseas Loan-book, 54.87% was Buyers’ Credit/ Expor
Slide 28: NPA Movement (Gross): FY13
NPA Movement (Gross): FY13 Particular ( Rs crore) A. Opening Balance 4,464.75 B. Additions during FY13 6,843.80 Out of which, Fresh Slippages 6,572.51 C. Reduction during FY13 3,325.97 Recovery 625.57 Upgradation 340.93 PWO & WO 2,356.38 Other Adjustments 3.09 NPA as on 31st March, 2013 7,982.58 Rec
Slide 29: GNPA movement in Domestic Advances: Quarter-Wise
GNPA movement in Domestic Advances: Quarter-Wise Particular Q1, FY13 Q2, FY13 Q3, FY13 Q4, FY13 A. Opening Balance 3,881.83 4,696.22 5,285.43 65,98.90 B. Additions 1,120.60 1,234.46 1,880.76 1,723.35 Out of which, Fresh 1,085.16 1,178.28 1,781.17 1,657.48 Slippages C. Reduction 306.21 645.25 567.29
Slide 30: Sector-wise gross NPAs: End-Mar, FY12 & FY13
Sector-wise gross NPAs: End-Mar, FY12 & FY13 Sector Gross NPA (%) Gross NPA (%) End-Mar, FY12 End-Mar, FY13 Agriculture 3.99 4.90 Large & Medium 1.06 3.29 Industries Retail 1.91 1.76 Housing 1.94 1.30 SSI (Mfg) 2.24 4.26 Total MSME 3.19 3.44 Overseas Operations 0.68 1.37
Slide 31: Restructured Accounts (Domestic)
Restructured Accounts (Domestic) Year Outstanding as on 31st March (Rs crore) Standard Category NPA Category Grand total No. of A/Cs Amount No of A/Cs Amount No of A/Cs Amount Up to 2008 152 301.94 75 106.89 227 408.83 2008-09 4349 1091.96 4725 488.91 9074 1580.87 2009-10 3263 1910.97 1777 303.96 50
Slide 32: Restructured Accounts (Domestic)
Restructured Accounts (Domestic) •Restructured accounts include the following amounts pertaining to other facilities of the borrowers not restructured but included in the restructured portfolio as per the RBI guidelines: Rs 80.26 cr up to end-Mar, 2008; Rs 706.04 cr in FY09; Rs 1044.64 cr in FY10, R
Slide 33: Sectoral Deployment of Credit at end-Mar, 2013
Sectoral Deployment of Credit at end-Mar, 2013 % share in Gross Sector Domestic Credit Agriculture 12.6% Retail 16.6% SME 19.7% Wholesale 37.5% Misc. including 13.6% Trade Total 100.0%
Slide 34: Bank's BPR Project – Navnirmaan
Bank’s BPR Project – Navnirmaan….. •Project Navnirmaan has altogether -18- initiatives covering both Business Process Re- engineering and Organization Re-structuring, aimed at transforming the Bank’s branches into a sales and service centres through sustained Centralization to make possible Sales gr
Slide 35: Bank's BPR Project – Navnirmaan
Bank’s BPR Project – Navnirmaan….. •The initial impact of Baroda Next migration has been found to be rewarding both in terms of increased customer satisfaction and CASA growth. •The said impact has been sustained at 110 Baroda Next branches evaluated on (a) sales and (b) customer satisfaction during
Slide 36: Bank's HR Initiatives
Bank’s HR Initiatives • Recruitment in FY13 • Focused hiring efforts on a sustained basis year on year, to cater to superannuation, sustained business growth and rapid branch expansion -------------------------------------------------- •New Hiring in FY12: 3,400 [2,973 joined up to 31st March, 2013)
Slide 37: Bank's HR Initiatives
Bank’s HR Initiatives…….. Project Udaan: • A Large scale, comprehensive Leadership Development training covering almost 1,500 people (all branch heads of Urban / Metro Branches & AGMs/DGMs in the Bank) ----------------------------------- Project Sparsh: • A focused HR transformation project – ‘SPARS
Slide 38: Economic Outlook & Guidance
Economic Outlook & Guidance…….. •A growing list of global agencies including the World Bank are predicting a turnaround in India’s economy in FY14 on account of slowing inflation & narrowing trade deficit •World Bank expects India’s growth to recover to 6.1% in FY14 & 6.7% in FY15 from 5.0% in FY13
Slide 39: Major reasons for a likely pick-up in FY14
Major reasons for a likely pick-up in FY14 •Prospect of likely normal monsoon – This should help boost growth, rural incomes and help in moderating stubborn food inflation. •Improvement in global food outlook - Record crops are expected in all the major agricultural nations of the world, which is re
Slide 40: Major reasons for a likely pick-up in FY14
Major reasons for a likely pick-up in FY14 •Progress on power debt restructuring – As per the plan, the state governments will take on half of the debt given to SEBs and convert them into long-term bonds. In return, banks will restructure the remaining 50% and provide a 3-year moratorium. •The SEBs
Slide 41: Bank's Guidance for FY14
Bank’s Guidance for FY14 •RBI’s Guidance - Aggregate Deposits to grow by 14.0% & Non-food credit by 15.0% in FY14 for the Indian banking industry •Bank’s Guidance: The Bank would like to avoid aggression as the economy is still in the recovery mode, but will try to grow 1.5% to 2.0% over and above t
Slide 42: Thank you.
B Thank you.