Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — Q3 FY2015 Earnings Presentation
32 slides from Bank of Baroda's earnings presentation, Jan 30, 2015
Slide 1: Weathering the Storm by Building Business Resilience
Bank of Baroda: Weathering the Storm by Building Business Resilience Performance Analysis: Q3 & Apr-Dec, 2014-15 (FY15) Dr Rupa Rege Nitsure Chief Economist January 30, 2015
Slide 2: BOB's Results At A Glance
BOB’s Results At A Gla ce Results for Q3, FY15 Ratios for Apr-Dec, FY15 Performance Growth Key Performance Ratio (in %) Rs crore Parameter (y-o-y) Return on Average Assets 0.57% Net Profit 334 -68.1% Return on Equity 9.80% Operating Profit 2,339 6.4% Cost-Income Ratio 44.97% Total Business 9,58,230
Slide 3: BOB's Results At A Glance
BOB’s Results At A Gla ce Parameter Q1, FY15 Q2, FY15 Q3, FY15 Net Interest 3,328 3,401 3,286 Income Fresh Slippages 1,881 1,758 3,042 Incremental 986 1,175 1,598 Restructuring
Slide 4: Bank's Key Strategic Initiatives in Apr-Dec, FY15
Ba k’s Key “trategic I itiati es i Apr-Dec, FY15 • During Apr-Dec, FY15, the Ba k’s term deposits with preferential rate of interest has declined from Rs 11,792 cr at end-Mar, 2014 to Rs 8,082 cr at end-Dec, 2014; even the share of CDs to Term Deposits fell from 7.5% at end-Mar 14 to 2.51% at end-De
Slide 5: Bank's Key Strategic Initiatives in Apr-Dec, FY15
Ba k’s Key “trategic I itiati es i Apr-Dec, FY15 It opened 215 new branches in its Domestic Operations and set up 1,055 new ATMs and 2,270 new POS machines (Point of Sale Machines) in Apr-Dec,FY15. It also opened 7 new e-Lobbies during this period to offer 24*7 basic banking operations. In its over
Slide 6: Bank of Baroda: Key Strengths
Bank of Baroda: Key Strengths Bank of Baroda is a 106 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 7: Domestic Branch Network (as on 31st Dec, 2014)
Domestic Branch Network (as on 31st Dec, 2014) No. of Domestic Branches •During past five years, the Bank added 2,004 branches to its domestic network. 6000 4575 5,054 •In Apr-Dec, FY15, 22 service brs & 5 MICR 4134 5000 brs were classified as offices instead of 3691 3050 3259 branches as per the ne
Slide 8: Concentration (%): Domestic Branch Network
Concentration (%): Domestic Branch Network (As on 31st Dec, 2014) Rest of India, 25.55 Gujarat, 18.54 Maharashtra, 10.43 UP & Uttaranchal, 23.84 South, 10.92 Rajasthan, 10.72
Slide 9: Pattern of Shareholding: 31st December, 2014
Pattern of Shareholding: 31st December, 2014 As on 31st Dec, 2014 Indian Corp. Public Bodies •Share Capital: Rs 430.68 crore Others 4.3% 2.9% 1.3% •Net worth: Rs 38,089 crore (up 10.2%, y-o-y) • FIIs 18.4% • B. V. per share (vs. F. V. per share: Rs 10): Rs 887 (up 8.1%, y-o-y) •Return on Equity: 9.8
Slide 10: Macro Environment: Apr-Dec, FY15
Macro Environment: Apr-Dec, FY15 • Real Sector weaknesses continued during Apr-Dec, 2014 as – • Rainfall this year was deficient & unevenly distributed and hence official estimates place the output of kharif grain 6.7% (yoy) lower at 120.3 mt. Even sowing of rabi crop until Jan 23, 2015 has been low
Slide 11: Business Expansion
Business Expansion Change Particular Y-O-Y Over Dec’1 Mar’1 Dec’1 (Rs crore) (%) Mar’1 (%) Global Business 8,56,218 9,65,900 9,58,230 11.9 -0.8 Domestic Business 5,78,616 6,51,223 6,43,380 11.2 -1.2 Overseas Business 2,77,602 3,14,677 3,14,850 13.4 0.1 Global Deposits 5,03,772 5,68,894 5,64,600 12.1
Slide 12: Business Expansion
Business Expansion Change Particular Y-O-Y Over Dec’1 Mar’1 Dec’1 (Rs crore) (%) Mar’1 (%) Global advances (Net) 3,52,446 3,97,006 3,93,631 11.7 -0.9 Domestic Advances 2,37,674 2,72,169 2,60,913 9.8 -4.1 Overseas Advances 1,14,772 1,24,837 1,32,717 15.6 6.3 Retail Credit 42,777 46,019 48,736 14.0 5.
Slide 13: CASA Position
CASA Position Change Particular Y-O-Y Over Dec’1 Mar’1 Dec’1 (Rs crore) (%) Mar’1 (%) Global Saving Deposits 90,398 96,437 1,02,844 13.8 6.6 Domestic Savings Deposits 87,579 93,381 99,449 13.6 6.5 Overseas Savings Deposits 2,819 3,057 3,395 20.4 11.1 Global Current Deposits 41,668 50,050 46,297 11.1
Slide 14: Bank's Profits & Its Key Components: Apr-Dec, FY14 & FY15
Ba k’s Profits & Its Key Co po e ts: Apr-Dec, FY14 & FY15 Particular YOY Apr-Dec, FY14 Apr-Dec, FY15 (Rs crore) (%) Interest Income 28,651 32,202 12.4 Interest Expenses 19,810 22,186 12.0 NII (Spread) 8,841 10,016 13.3 Other Income 3,136 3,107 -1.0 Staff Expenses 3,100 3,333 7.5 Total Expenses 25,01
Slide 15: Deposit & Loan Costs: Q3,FY14 to Q3,FY15
Deposit & Loan Costs: Q3,FY14 to Q3,FY15 Particular (in %) Q3, Q4, Q1, Q2, Q3, FY14 FY14 FY15 FY15 FY15 Global Cost of Deposits 5.24 5.27 5.19 5.18 5.18 Domestic Cost of Deposits 7.10 7.18 7.13 7.23 7.12 Overseas Cost of Deposits 1.10 1.08 1.10 1.06 1.02 Global Yield on Advances 8.30 8.16 8.31 8.36
Slide 16: Investment Yields & NIMs: Q3,FY14 to Q3,FY15
Investment Yields & NIMs: Q3,FY14 to Q3,FY15 Particular (in %) Q3, Q4, Q1, Q2, Q3, FY14 FY14 FY15 FY15 FY15 Global Yield on Investment 7.78 7.81 7.91 8.00 7.94 Domestic Yield on Investment 7.98 7.99 8.09 8.19 8.13 Overseas Yield on Investment 3.62 4.00 4.12 4.26 4.22 Global NIM 2.37 2.29 2.35 2.40 2
Slide 17: Non-Interest income: Q3 of FY14 & FY15
Non-Interest income: Q3 of FY14 & FY15 % Change (Rs crore) Q3, FY14 Q3, FY15 (Y-O-Y) Commission, Exchange, Brokerage 321.4 373.2 16.1 Incidental Charges 87.4 78.5 -10.2 Other Miscellaneous Income 86.0 106.0 23.6 Total Fee-Based Income 494.8 557.7 12.7 Trading Gains 127.1 243.6 91.7 FX Profits (Treas
Slide 18: Non-Interest income: Apr-Dec of FY14 & FY15
Non-Interest income: Apr-Dec of FY14 & FY15 Apr-Dec, Apr-Dec, % Change (Rs crore) FY14 FY15 (Y-O-Y) Commission, Exchange, Brokerage 1,018.2 1,053.3 3.4 Incidental Charges 275.6 254.36 -7.7 Other Miscellaneous Income 221.2 262.8 18.8 Total Fee-Based Income 1,515.0 1,570.5 3.7 Trading Gains 654.5 646.
Slide 19: Provisions & Contingencies: Q3 of FY14 & FY15
Provisions & Contingencies: Q3 of FY14 & FY15 % (Rs crore) Q3, FY14 Q3, FY15 Change Provision for NPA & Bad Debts 818.59 1,149.82 40.5 Written-off Provision for Depreciation on -119.80 -50.17 -58.1 Investment Provision for Standard Advances 26.81 141.03 426.0 Other Provisions (including 36.27 21.56
Slide 20: Provisions & Contingencies: Apr-Dec of FY14 & FY15
Provisions & Contingencies: Apr-Dec of FY14 & FY15 % Apr-Dec, Apr-Dec, (Rs crore) Change FY14 FY15 Provision for NPA & Bad Debts 2,330.30 2,505.87 7.5 Written-off Provision for Depreciation on -94.81 -187.26 97.5 Investment Provision for Standard Advances 343.77 233.60 -32.0 Other Provisions (includ
Slide 21: Bank's Domestic Treasury Highlights: Q3, FY15
Ba k’s Do estic Treasury Highlights: Q , FY1 • Treasury Income stood at the level of Rs 497 crore in Q3, FY15 and provided good support to Non-Interest Income generation. • However, the write-back received on investment depreciation was lower at Rs 50 crore in Q3, FY15 on y-o-y basis. • As on 31st D
Slide 22: Highlights of Overseas Business: Q3, FY15
Highlights of Overseas Business: Q3, FY15 • During Q3, FY15, the Ba k s Overseas Business contributed 32.9% to its Total Business, 24.7% to Gross Profit and 30.2% to Core Fee-based income (i.e., Commission, Exchanges, Brokerage, etc.) • Out of the Total Overseas Loan-book, 52.3% was Buyers’ Credit/B
Slide 23: NPA Movement (Gross): Apr-Dec, FY15
NPA Movement (Gross): Apr-Dec, FY15 Particular ( Rs crore) A. Opening Balance 11,875.90 B. Additions during Apr-Dec, FY15 6,726.08 Out of which, Fresh Slippages 6,385.36 C. Reduction during Apr-Dec, FY15 3,109.95 Recovery 1,077.45 Upgradation 1,119.97 Write-Offs 903.27 Other Adjustments 9.26 NPA as
Slide 24: Sector-wise Gross NPA [Sequential Movement]
Sector-wise Gross NPA [Sequential Movement] GNPA (%) GNPA (%) Sector GNPA (%) GNPA (%) GNPA (%) Mar, Sept, Dec, 2013 Jun, 2014 Dec, 2014 2014 2014 Agriculture 5.77 5.35 5.98 5.72 5.74 Large & Medium 6.03 5.05 5.35 6.13 6.83 Industries Retail 2.11 1.96 2.29 2.15 2.24 Housing 1.47 1.45 1.47 1.43 1.46
Slide 25: Restructured Accounts
Restructured Accounts •In its global operations, the Bank restructured loans to the tune of Rs 1598 cr (2,284 accounts) in Q3, FY15 versus Rs 1,175 cr (4,266 accounts) in Q2, FY15 versus Rs 986 cr ( 3,761 accounts) in Q1, FY15; •Within this, domestic restructuring was Rs 1,529 crore (2,278 accounts)
Slide 26: Sectoral Deployment of Credit at end-Dec, 2014
Sectoral Deployment of Credit at end-Dec, 2014 % share in Gross Sector Domestic Credit Agriculture 13.2 Retail 18.2 SME 22.1 Large & Medium 27.1 Misc. including Trade 19.4 Total 100.0%
Slide 27: Technology Achievements in Q3, FY15: Customer Service
Technology Achievements in Q3, FY15 Steps taken by the Ba k’s IT Division to enhance Customer Service • Integration with PAYTM in e-banking • Significant progress under Card to Card Funds Transfer • Facilitated Cyber Treasury Payments by Customers in Madhya Pradesh via an online e-banking portal • I
Slide 28: Technology Achievements in Q3, FY15: Organisational Efficiency
Technology Achievements in Q3, FY15 Steps taken to improve Organisational Efficiency • Upgradation from DCMS (Debit Card Mgmt system) to PA-DSS compliant solution CMS (Card Mgmt System) in global operations • Corporate Module in LAPs • New Learning Mgmt System in Community Cloud for staff • Automati
Slide 29: Bank's BPR Project – Status as of 31st Dec, 2014
Ba k’s BPR Project – Status as of 31st Dec, 2014 •The Ba k’s BPR Project or Navnirmaan has altogether 18 initiatives covering both business process re-engineering and organizational re-structuring, aimed at transforming the Ba k’s branches into the “ales and Service Ce tres through centralization to
Slide 30: New Recruitment in Apr-Dec, FY15
New Recruitment in Apr-Dec, FY15 Joining Status Proposed Recruitment for Category (01-04-2014 to the year 31.12.2014) Total New Hiring for FY15 7,600 5,476 Of which: A. Total No. of Officers 3,800 2,885 a) Probationary Officers 2360 2040 b) Specialist Officers 600 361 c) Baroda Manipal Trainees 840
Slide 31: Bank's Novel HR Initiatives
Ba k’s No el HR I itiati es Among various HR Initiatives undertaken, the following are notable. a) A Structured Six-monthly On-Boarding Programme for new officers put in place. b) Focussed Talent Management Programme & Succession Planning Exercise conducted. c) Centralisation of various HR activitie
Slide 32: Bank's Forward Guidance / Thank you
Ba k’s For ard Guida ce •Against the backdrop weak economic recovery and global uncertainties, the Bank would like to stay cautiously optimistic and focus more on bottomline and capital conservation rather than topline expansion. •The focus will be on building Business Resilience to weather the stor