Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — Q3 FY2012 Earnings Presentation
37 slides from Bank of Baroda's earnings presentation, Jan 25, 2012
Slide 1: Bank of Baroda: Financial Results Q3 & Apr-Dec 2011-12
Bank of Baroda Story of Commitment, Consistency & Credibili ncial Results: Q3 & Apr-Dec, 2011-12 (FY ancial Dr Rupa Rege Nitsure Chief Economist January 25, 2012
Slide 2: Bank of Baroda: Comfortably Beats its Guidance for Q3, FY12
Bank of Baroda: Comfortably Beats its Guidance for Q3, FY12 •Global Business Size: Rs 6,09,867 crore on 31st Dec, 2011 [up 24.8%, y-o-y] •Market Share in Aggregate Deposits up from 3.70% in Mar’07 to 4.14% in Dec’11 •Market Share in Credit up from 3.53% in Mar’07 to 4.09% in Dec’11 •Global Loan-book
Slide 3: Bank of Baroda: Key Strengths
Bank of Baroda: Key Strengths Bank of Baroda is a 103 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 & Contemporary
Slide 4: Domestic Branch Network
Domestic Branch Network No. of Domestic Branches 3691 •Bank has added 983 branches in 4000 3050 3259 its Indian operations during 3500 2827 2899 Dec’06 to Dec’11. 2708 3000 •With this, its domestic branches 2500 totaled 3,691 at end-Dec, 2011. 2000 •During Apr-Dec, FY12, the Bank 1500 opened 327 new
Slide 5: Robust Technology Platform
Robust Technology Platform •As on 31st Dec 2011, the Bank’s entire domestic, overseas and RRBs [i.e., five sponsored RRBs] related operations were on the CBS platform. •Bank has developed IT facilities for online/offline account opening through Business Correspondents under Financial Inclusion. • Ba
Slide 6: Robust Technology Platform
Robust Technology Platform •Bank has developed an Integrated Global Treasury Solution in its major territories like U.K., UAE, Bahamas, Bahrain, Hong Kong, Singapore, Belgium, USA and India to achieve reduced cost of operations & better fund mgmt. •Bank has a centralised SWIFT system for India & its
Slide 7: Concentration (%): Domestic Branch Network
Concentration (%): Domestic Branch Network [As on 31st Dec, 2011] Rest of India, 22.87 Gujarat, 21.02 Maharashtra, 11.84 UP & Uttaranchal, 22.21 South, 10.87 Rajasthan, 11.19
Slide 8: Pattern of Shareholding: 31st Dec, 2011
Pattern of Shareholding: 31st Dec, 2011 As on 31st Dec, 2011 •Share Capital: Rs 392.81 crore Corp. Bodies Indian Public 6.5% Others •No. of Shares: 391.55 million 5.0% 1.1% • Net worth: Rs 24,168.56 crore FIIs 14.1% • B. V. per share: Rs 617.26 •Return on Equity (Apr-Dec, FY12): 19.25% •Return on Eq
Slide 9: Comparative Performance of BoB Stock: Dec’10 to Dec’11
Comparative Performance of BoB Stock: Dec’10 to Dec’11 Value Value Index/Stock (31st Dec’10) (31st Dec’11) % Change Sensex 20,509.09 15,454.92 -24.6% Nifty 6,134.50 4,624.30 -24.6% Bankex 13,379.73 9,153.39 -31.6% BankNifty 11,791.45 7,968.65 -32.4% BoB-BSE 896.50 660.85 -26.3% BoB-NSE 896.70 665.35
Slide 10: India’s Macro Health: Dec’10 to Dec’11
India’s Macro Health: Dec’10 to Dec’11 Indicator Apr-Nov, 2010 Apr-Nov, 2011 Infrastructure 5.0% 4.6% Industries’ Growth (%, yoy) IIP Growth (%, yoy) 8.4% 3.8% Exports (US$ Bln) 144.66 192.69 Trade Deficit (US$ Bln) 93.00 116.84 Dec, 2010 Dec, 2011 Food Inflation 15.1% 0.7% Fuel Inflation 11.3% 14.9
Slide 11: Economic & Banking Outlook
Economic & Banking Outlook •Global growth forecasts for 2012 have been revised downwards by most of the multilateral agencies & investments firms due to the European sovereign debt crisis & ripple effects of 2008 crisis. •Developing countries like India would still lead the global growth but at slow
Slide 12: Bank’s Business Growth (Y-O-Y): Dec’06 to Dec’11
Bank’s Business Growth (Y-O-Y): Dec’06 to Dec’11 Growth: Total Deposits (%) Growth: Total Advances (%) 46.8 50.0 31.0 35.0 27.6 30.9 45.0 40.0 32.4 32.7 30.0 23.2 24.1 21.9 35.0 23.5 25.8 25.0 30.0 23.0 20.0 25.0 15.0 20.0 15.0 10.0 10.0 5.0 5.0 0.0 0.0 D ec'06 D ec'07 D ec'08 D ec'09 D ec'10 D ec'1
Slide 13: Bank’s Profitability: Dec’06 to Dec’11
Bank’s Profitability: Dec’06 to Dec’11 7000.00 Rs crore 6540.43 •During the last five years, the Bank’s Gross 6000.00 Profit during Nine Months (Apr-Dec) has grown at the robust CAGR of 31.4% & Net Profit at 34.9%. 5035.80 5000.00 4000.00 3488.78 3306.49 3000.52 2947.33 3000.00 2152.05 2214.10 2000.
Slide 14: Bank’s Asset Quality: Dec’06 to Dec’11
Bank’s Asset Quality: Dec’06 to Dec’11 4.00 2.00 % % 1.80 3.50 1.60 3.00 3.02 1.40 2.50 1.20 2.11 2.00 1.00 Gross NPA 1.50 1.43 1.32 1.48 Net NPA 0.80 1.50 0.60 0.67 0.54 1.00 0.51 0.40 0.37 0.50 0.31 0.36 0.20 0.00 0.00 Dec'06 Dec'07 Dec'08 Dec'09 Dec'10 Dec'11
Slide 15: Bank’s Business Performance: Dec’10 to Dec’11
Bank’s Business Performance: Dec’10 to Dec’11 Change Particular Y-O-Y Over Dec’10 Mar’11 Dec’11 (Rs crore) (%) Mar’11 (%) Global Business 4,88,721 5,34,116 6,09,867 24.8 14.2 Domestic Business 3,67,417 4,02,731 4,35,228 18.5 8.1 Overseas Business 1,21,304 1,31,385 1,74,639 44.0 32.9 Global Deposits
Slide 16: Bank’s Business Performance: Dec’10 to Dec’11
Bank’s Business Performance: Dec’10 to Dec’11 Change Particular Y-O-Y Over Dec’10 Mar’11 Dect’11 (Rs crore) (%) Mar’11 (%) Global advances (Net) 2,07,209 2,28,676 2,60,661 25.8 14.0 Domestic Advances 1,52,039 1,69,408 1,80,234 18.5 6.4 Overseas Advances 55,170 59,269 80,427 45.8 35.7 Retail Credit 2
Slide 17: Bank’s Business Performance: Dec’10 to Dec’11
Bank’s Business Performance: Dec’10 to Dec’11 Change Particular Y-O-Y Over Dec’10 Mar’11 Dec’11 (Rs crore) (%) Dec’10 (%) Global Saving 61,540 64,454 71,842 16.7 11.5 Deposits Domestic Savings 60,092 62,959 70,169 16.8 11.5 Deposits Overseas Savings 1,448 1,495 1,674 15.6 12.0 Deposits Global Curren
Slide 18: Bank’s Profits & NII: Apr-Dec & Q3, FY11 and FY12
Bank’s Profits & NII: Apr-Dec & Q3, FY11 and FY12 % Particular Apr-Dec’ Apr-Dec’ Q3, % Change Change Q3, FY11 (Rs crore) FY11 FY12 FY12 (Y-o-Y (Y-o-Y) Gross Profit 5,035.81 6,579.44 30.7% 1,851.20 2,608.19 40.9% Net Profit 2,947.34 3,488.78 18.4% 1,068.88 1,289.85 20.7% Net Interest Income 6,188.39
Slide 19: Other Highlights: Q3,FY11 to Q3,FY12
Other Highlights: Q3,FY11 to Q3,FY12 Particular (in %) Q3, Q4, Q1, Q2, Q3, FY11 FY11 FY12 FY12 FY12 Global Cost of Deposits 4.53 4.79 5.36 5.61 5.65 Domestic Cost of Deposits 5.27 5.63 6.41 6.84 6.90 Overseas Cost of Deposits 1.94 1.83 1.80 1.82 1.96 Global Yield on Advances 8.58 8.74 9.11 9.64 9.45
Slide 20: Other Highlights: Q3, FY11 to Q3,FY12
Other Highlights: Q3, FY11 to Q3,FY12 Particular (in %) Q3, Q4, Q1, Q2, Q3, FY11 FY11 FY12 FY12 FY12 Global Yield on 7.39 7.45 7.47 7.58 7.67 Investment Domestic Yield on 7.56 7.60 7.59 7.72 7.79 Investment Overseas Yield on 3.85 4.34 4.86 4.24 4.90 Investment Global NIM 3.20 3.45 2.87 3.07 2.99 Dom
Slide 21: Key Financial Ratios: Q3, FY12 versus Q3, FY11
Key Financial Ratios : Q3, FY12 versus Q3, FY11 • Return on Average Assets at 1.29% [ 1.34% in Q3, FY11] • Earning per Share at Rs 131.76 [Rs 117.36 in Q3, FY11] • Book Value per Share at Rs 617.26 at end-Dec, 2011 [Rs 459.58 at end-Dec, 2010 ] • Return on Equity (ROE) at 21.35% [ 25.5% in Q3, FY11]
Slide 22: Key Productivity Indicators Q3, FY12 versus Q3, FY11
Key Productivity Indicators Q3, FY12 versus Q3, FY11 Particular Q3, FY11 Q3, FY12 Business per Employee (Rs 11.54 13.53 crore)# Business per Branch (Rs crore)# 147.65 162.85 Profit per Employee (Rs lakh) 10.88 12.27 Profit per Branch (Rs lakh) 129.17 137.77 #: Total Business = Core Deposits + Net Ad
Slide 23: Non-Interest Income: Q3, FY11 and Q3, FY12
Non-Interest Income: Q3, FY11 and Q3, FY12 % (Rs crore) Q3, FY11 Q3, FY12 Change (Y-O-Y) Commission, Exchange, 244.54 292.97 19.8% Brokerage Incidental Charges 74.11 74.20 0.12% Other Miscellaneous Income 64.17 84.79 32.1% Total Fee-Based Income 382.82 451.96 18.1% Trading Gains 84.77 385.50 354.8%
Slide 24: Non-Interest Income: Apr-Dec, FY11 and Apr-Dec, FY12
Non-Interest Income: Apr-Dec, FY11 and Apr- Dec, FY12 % Apr-Dec, Apr-Dec, Change (Rs crore) FY11 FY12 (Y-O-Y) Commission, Exchange, 694.36 881.40 26.9% Brokerage Incidental Charges 241.74 228.60 -5.4% Other Miscellaneous Income 160.27 194.93 21.6% Total Fee-Based Income 1,096.37 1,304.93 19.0% Tradi
Slide 25: Provisions & Contingencies: Q3, FY11 and Q3, FY12
Provisions & Contingencies: Q3, FY11 and Q3, FY12 (Rs crore) Q3, FY11 Q3, FY12 Absolute Change Provision for NPA & Bad 206.42 508.92 +302.5 Debts Written-off Provision for Depreciation on 53.45 224.11 +170.7 Investment Provision for Standard 36.91 99.51 +62.6 Advances Other Provisions (including 7.2
Slide 26: Provisions & Contingencies: Apr-Dec, FY11 and Apr-Dec, FY12
Provisions & Contingencies: Apr-Dec, FY11 and Apr- Dec, FY12 (Rs crore) Apr-Dec, Apr-Dec, Absolute FY11 FY12 Change Provision for NPA & Bad 626.21 939.00 +312.8 Debts Written-off Provision for Depreciation on -25.71 507.64 +533.4 Investment Provision for Standard 117.76 259.38 +141.6 Advances Other
Slide 27: Bank’s Treasury Highlights: Q3, FY12
Bank’s Treasury Highlights: Q3, FY12 • Treasury Income stood at the level of Rs 626.24 crore in Q3, FY12. • As on 31st Dec, 2011, the Bank’s break-even yield on AFS was 8.55%. • As of Dec 31st, 2011, the share of SLR Securities in Total Investment was 88.9%. • The Bank had 81.9% of SLR Securities in
Slide 28: Overseas Business: Apr-Dec & Q3, FY12
Overseas Business: Apr-Dec & Q3, FY12 • As on 31st Dec, 2011, the “Overseas Business” contributed 28.6% to the Bank’s Total Business, 19.6% to its Gross Profit and 36.1% to its Core Fee income (i.e. Commission, Exchange & Brokerage) based on the first nine months’ data. • While the Cost-Income Ratio
Slide 29: NPA Movement (Gross): Apr-Dec, FY12
NPA Movement (Gross): Apr-Dec, FY12 Particular ( Rs crore) A. Opening Balance 3,152.50 B. Additions during Apr-Dec, 2,119.98 FY12 Out of which, Fresh Slippages 1,979.80 C. Reduction during Apr-Dec, 1,377.40 FY12 Recovery 409.71 Upgradation 279.17 PWO & WO 688.52 Exchange Difference 0.00 NPA as on 31
Slide 30: Sector-wise Gross NPAs: Apr-Dec, FY12 versus Apr-Dec, FY11
Sector-wise Gross NPAs: Apr-Dec, FY12 versus Apr-Dec, FY11 Sector Gross NPA Gross NPA (%) (%) Apr-Dec, Apr-Dec, FY11 FY12 Agriculture 3.24 4.01 Large & Medium 1.41 1.36 Industries Retail 1.94 2.13 Housing 2.00 1.85 SSI (Mfg) 1.45 1.35 Total MSME 2.91 3.09 Overseas 0.55 0.69 Operations
Slide 31: Cumulative Position of Restructured Assets (Domestic)
Cumulative Position of Restructured Assets (Domestic) • During the past 45 months (1 Apr’08 to 31 Dec’11), the Bank has restructured 78,239 accounts amounting Rs 9,945.43 crore. • Within this, the loans worth Rs 3,234.00 crore were restructured in Apr-Dec, FY12. • For the period of 45 months, out of
Slide 32: Sectoral Deployment of Credit, End-Dec, 2011
Sectoral Deployment of Credit, End-Dec, 2011 Sector % share in Gross Domestic Credit Agriculture 14.2% Retail 17.0% SME 17.6% Wholesale 37.2% Misc. including 14.0% Trade Total 100.0%
Slide 33: Major Awards & Accolades in FY12 so far
Major Awards & Accolades in FY12 so far .. • Awards for the Bank • Best Public Sector Bank (PSB) by CNBC-TV18 & MCX • Golden Peacock Award for Excellence in Corporate Governance by Institute of Directors & World Forum for Corporate Governance received in London • Dainik Bhaskar India Pride Award for
Slide 34: Bank’s BPR Project - Navnirmaan
Bank’s BPR Project - Navnirmaan •Project Navnirmaan has altogether 18 activities covering both BPR & Organisational Restructuring, aimed at transforming the Bank’s branches into a sales & service centres to make possible a sustained sales growth, superior customer experience and alternate channel mi
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 recently evaluated on (a) sales and (b) customer satisfaction,
Slide 36: Bank’s HR Initiatives
Bank’s HR Initiatives • Recruitment Plan for FY12 • Total New Hires Planned for Recruitment: Approximately 4,000 • Probationary Officers: 1,200 planned; 891 joined up to Dec’11 • Campus Recruitment: 539 joined so far • Specialist Officers: 58 joined; 50 more to join soon • Clerks – 2,000 planned; 1,
Slide 37: Thank you
•Abraham Lincon (1809 to 1865) had said “Always bear in mind that your own resolution to succeed is more important than any one thing.” •Bank of Baroda’s consistently sound performance for the last 15 quarters despite global turbulence & domestic risks reflects nothing but its “Firm Resolution to Su