Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — Q3 FY2010 Earnings Presentation
35 slides from Bank of Baroda's earnings presentation, Jan 27, 2010
Slide 1: Presentation to Analysts: Performance Highlights (Apr-Dec & Q3, 2009-10)
Presentation to Analysts Performance Highlights ( Apr-Dec & Q3, 2009-10) by Dr Rupa Rege Nitsure Chief Economist January 27, 2010
Slide 2: Bank of Baroda: Key Strengths
Bank of Baroda: Key Strengths Bank of Baroda is a 101 years old State-owned Bank with modern and contemporary personality, offering banking products and services to industrial and commercial, retail and agricultural customers across the country. Uninterrupted Record Overseas Business Modern & Cont
Slide 3: Domestic Branch Network
Domestic Branch Network No. of Domestic Branches 3050 •Bank’s network of domestic 3050 branches as on 31st Dec., 3000 2899 2009 was 3,050 & no. of 2950 ATMs were 1,238. 2900 2827 •During Apr-Dec, FY10, Bank 2850 opened 128 new branches & 2800 merged four existing 2750 branches. 2700 •Around 36.7% of
Slide 4: Robust Technology Platform
Robust Technology Platform •Bank achieved 100.0% CBS implementation in its domestic operations on 19th Sept’09. •Additionally, 43 br. in 12 overseas territories & 27 br. in seven overseas subsidiaries covering 79.0% of total overseas business is also on the CBS. •All CBS branches are enabled for int
Slide 5: Concentration (%): Domestic Branch Network
Concentration (%): Domestic Branch Network Rest of India, 17.99 Gujarat, 23.98 Maharashtra, 11.85 UP & Uttaranchal, 22.4 Rajasthan, 12.27 South, 11.51
Slide 6: Pattern of Shareholding: 31st Dec, 2009
Pattern of Shareholding: 31st Dec, 2009 As on 31st Dec, 2009 Corp. Others • Share Capital Bodies Rs 365.53 Indian 0.6% 6.2% crore Public 5.7% •No. of Shares 364.27 million FIIs 14.8% • Net worth Rs 13,532.76 crore Insurance • B. V. per share Rs 371.47 Cos 8.7% Govt. of •Return onaEquity • BOB is (an
Slide 7: Comparative Performance of BoB Stock: Apr-Dec'09
Comparative Performance of BoB Stock: Apr- Dec’09 Value Value % Change Index/Stock (31st (31st (Value) Mar’09) Dec’09) Sensex 9,708.50 17,464.81 79.9% Nifty 3,020.95 5,201.05 72.2% Bankex 4,490.97 10,030.80 123.4% BankNifty 4,133.20 9,029.50 118.5% BoB-BSE 234.55 511.30 118.0% BoB-NSE 234.35 513.95
Slide 8: Indian Macro Scene: Apr-Dec'09
Indian Macro Scene: Apr-Dec’09 IIP Growth (%) WPI (%) 7.31 14 8 11.7 12 10.6 10.3 7 6 4.78 10 8.3 5 8 9.6 4 6 7.2 3 1.31 1.46 4 2 0.46 1.38 1.1 1 2 2.1 0 Apr'09 Jun'09 Aug'09 Oct'09 0 -1 Dec'09 -1.01 -0.17 -0.67 Apr'09 May'09 Jun'09 Jul'09 Aug'09 Sep'09 Oct'09 Nov'09 -2 Bank Credit Growth (%) Rs/USD
Slide 9: Indian Macro Scene: Apr-Dec'09
Indian Macro Scene: Apr-Dec’09 •Macro scenario was quite mixed during Apr-Dec’09 . •While there was a sharp deceleration in kharif foodgrain production (- 16.2%) due to erratic & poor rainfall, the growth in industry (7.6% in Apr-Nov’09) & services (9.3% in Jul-Sept’09) sectors was quite strong. • D
Slide 10: BoB's Business Growth (Y-O-Y): Dec'05 to Dec'09
BoB’s Business Growth (Y-O-Y): Dec’05 to Dec’09 Growth: Total Deposits (%) Growth: Total Advances (%) 46.8 31.0 50.0 35.0 27.6 23.2 32.4 40.0 33.8 30.0 21.9 23.0 23.5 25.0 30.0 20.0 15.0 9.0 20.0 10.0 10.0 5.0 0.0 0.0 Dec'05 Dec'06 Dec'07 Dec'08 Dec'09 Dec'05 Dec'06 Dec'07 Dec'08 Dec'09 Growth: Tota
Slide 11: Profits for Nine Months: Apr-Dec: FY06 to FY10
Profits for Nine Months: Apr-Dec: FY06 to FY10 •Net Profit has grown at a CAGR of 3500.00 3306.48 36.6% between Dec’05 & Dec’09 Rs crore 3000.00 2905.51 2500.00 2214.10 2152.05 2000.00 1671.01 1474.51 1428.43 1500.00 1159.08 1000.00 780.80 618.20 500.00 0.00 Dec'05 Dec'06 Dec'07 Dec'08 Dec'09 Gross
Slide 12: Asset Quality: Dec'04 to Dec'09
% Asset Quality: Dec’04 to Dec’09 9 4 % 8.31 8 3.5 7 3 5.74 6 2.5 Gross 5 NPA 2 4 2.11 3.02 1.5 3 2.11 Net 1.1 1.5 1 NPA 2 0.67 1.43 1 0.5 0.54 0.31 0.37 0 0 Dec'04 Dec'05 Dec'06 Dec'07 Dec'08 Dec'09
Slide 13: Business Performance: Dec'09 over Dec'08
Business Performance: Dec’09 over Dec’08 Particular Dec’08 Dec’09 % Change (Rs crore) Global Business 2,95,091 3,71,288 25.8% Domestic Business 2,33,855 2,82,159 20.7% Overseas Business 61,236 89,130 45.6% Global Deposits 1,68,616 2,15,117 27.6% Domestic Deposits 1,36,516 1,66,159 21.7% Overseas Dep
Slide 14: Business Performance: Dec'09 over Dec'08
Business Performance: Dec’09 over Dec’08 Particular Dec’08 Dec’09 % Change (Rs crore) Global Advances (Net) 1,26,475 1,56,171 23.5% Domestic Advances (Net) 97,339 1,16,000 19.2% Overseas Advances (Net) 29,136 40,171 37.9% Out of Gross Domestic Credit, Retail Credit 18,805 22,301 18.6% Of which: Home
Slide 15: Business Performance: Dec'09 over Dec'08
Business Performance: Dec’09 over Dec’08 Particular (Rs crore) Dec’08 Dec’09 % Change Global Saving Deposits 40,181.32 49,542 23.3% Domestic Savings Deposits 39,043 48,175 23.4% Overseas Savings Deposits 1,139 1,367 20.1% Global Current Deposits 13,273 17,042 28.4% Domestic Current Deposits 10,240 1
Slide 16: Profits & NII: For Nine Months & Q3, FY09 & FY10
Profits & NII: For Nine Months & Q3, FY09 & FY10 Particular Apr-Dec, Apr-Dec, (Rs crore) % Change FY09 FY10 Gross Profit 2,905.51 3,306.48 13.8% Net Profit 1,474.51 2,152.05 46.0% Net Interest Income 3,652.62 4,194.53 14.8% Particular Oct-Dec, Oct-Dec, % Change (Rs crore) FY09 FY10 Gross Profit 1,34
Slide 17: Key Financial Ratios: Apr-Dec, 2009-10
Key Financial Ratios : Apr-Dec, 2009-10 Return on Average Assets at 1.20% [1.04% at end-Dec, 2008] Earning per Share (annualised) at Rs 78.77 [Rs 53.97 at end- Dec, 2008] Book Value per Share at Rs 371.47 [Rs 302.28 at end-Dec, 2008] Return on Equity (ROE) at 21.20% [17.85% at end-Dec, 2008]
Slide 18: Other Highlights: Apr-Dec, FY09 & FY10
Other Highlights: Apr-Dec, FY09 & FY10 Particular (In %) Apr- Apr- Dec’08 Dec’09 Global Cost of Deposits 5.73 5.11 Domestic Cost of Deposits 6.25 5.80 Overseas Cost of Deposits 3.52 2.54 Global Yield on Advances 9.58 8.71 Domestic Yield on 10.94 10.17 Advances Overseas Yield on 5.21 4.47 Advances
Slide 19: Other Highlights: Apr-Dec, FY09 & FY10
Other Highlights: Apr-Dec, FY09 & FY10 Particular (In %) Apr- Apr- Dec’08 Dec’09 Global Yield on Investment 7.18 6.71 Domestic Yield on 7.30 6.92 Investment Overseas Yield on 5.88 3.96 Investment Global NIM 2.94 2.65 Domestic NIM 3.17 2.96 Overseas NIM Net Interest Income •NIM indicates 1.97 1.48 as
Slide 20: Other Highlights: Oct-Dec, FY09 & FY10
Other Highlights: Oct-Dec, FY09 & FY10 Particular (In %) Oct- Oct-Dec’09 Dec’08 Global Cost of Deposits 5.95 4.69 Domestic Cost of Deposits 6.45 5.36 Overseas Cost of Deposits 3.78 2.24 Global Yield on Advances 9.91 8.60 Domestic Yield on 11.25 10.21 Advances Overseas Yield on 5.58 3.96 Advances
Slide 21: Other Highlights: Oct-Dec, FY09 & FY10
Other Highlights: Oct-Dec, FY09 & FY10 Particular (In %) Oct- Oct-Dec’09 Dec’08 Global Yield on 7.87 6.65 Investment Domestic Yield on 7.97 6.87 Investment Overseas Yield on 6.78 3.76 Investment Global NIM 3.30 2.95 •Sequentially, the NIM has improved from 2.37% in Q1, Domestic NIM 3.61 3.40 FY10 to
Slide 22: Non-Interest Income: Apr-Dec, FY09 & FY10
Non-Interest Income: Apr-Dec, FY09 & FY10 % Apr-Dec, Apr-Dec (Rs crore) Chang 2008 2009 e Comm., Exchange, 491.62 623.95 26.9% Brokerage Incidental Charges 256.19 224.41 -12.4% Profit on Exchange 286.01 279.26 -2.4% Transactions Recovery from PWO 180.54 182.05 0.8% Trading Gains 504.28 516.43 2.4% O
Slide 23: Non-Interest Income: Oct-Dec, FY09 & FY10
Non-Interest Income: Oct-Dec, FY09 & FY10 (Rs crore) Oct-Dec, Oct-Dec, % 2008 2009 Change Comm., Exchange, 172.87 230.92 33.6% Brokerage Incidental Charges 84.27 82.25 -2.4% Profit on Exchange 136.70 98.71 -27.8% Transactions Recovery from PWO 82.36 65.50 -20.5% Trading Gains 346.79 139.30 -59.8% Ot
Slide 24: Provisions & Contingencies: Apr-Dec, FY09 & FY10
Provisions & Contingencies: Apr-Dec, FY09 & FY10 (Rs crore) Apr- Apr- Dec’08 Dec’09 Provision for NPA / 101.32 723.63 Bad Debts Written-off Prov. For Dep. on 570.42 -442.43 Investment Prov. For Std. Adv. 59.66 27.42 Other Provisions (including Prov. For 20.92 11.25 staff welfare) Tax Provisions 773.
Slide 25: Provisions & Contingencies: Oct-Dec, FY09 & FY10
Provisions & Contingencies: Oct-Dec, FY09 & FY10 (Rs crore) Oct- Oct- Dec’08 Dec’09 Provision for NPA/ 100.10 242.95 Bad debts written-off Prov. For Dep. on 232.87 -21.56 Investment Prov. For Std. Adv. 3.80 17.35 Other Provisions (including Prov. For 13.32 3.75 staff welfare) Tax Provisions 356.25 1
Slide 26: Treasury Highlights: As on 31st Dec., 2009
Treasury Highlights: As on 31st Dec., 2009 • Treasury Income was marginally up 0.7% from Rs 790.29 crore in Apr-Dec, FY09 to Rs 795.69 crore in Apr-Dec, FY10. • As of Dec 31st 2009, the share of SLR Securities in Total Investment was 86.91%. • The Bank had 79.45% of SLR Securities in HTM and 19.94%
Slide 27: Overseas Business: Apr-Dec, 2009-10
Overseas Business: Apr-Dec, 2009-10 • In Apr-Dec, FY10, the “Overseas Business” contributed 24.0% to the Bank’s Total Business, 21.6% to its Gross Profit and 41.7% to its Fee-based income. • While the Cost-Income Ratio for Domestic Operations stood at 50.47% in Apr-Dec, FY10, it was just 22.23% for
Slide 28: Capital Adequacy & Capital Raising: Apr-Dec, FY10
Capital Adequacy & Capital Raising: Apr-Dec, FY10 • Bank’s CRAR as on 31st Dec, 2009 stood at 14.65%; of which Tier1 was at 9.31% and Tier 2 at 5.34%. • The size of Bank’s risk-weighted assets as on 31st Dec, 2009 was Rs 1,50,800 crore. • Bank proposes to maintain its CRAR in the band of 13.0% to 13
Slide 29: NPA Movement (Gross): Apr-Dec, 2009-10
NPA Movement (Gross): Apr-Dec, 2009-10 Particular Amount in Rs crore A. Opening Balance 1,842.92 B. Additions during Apr-Dec, 1,216.00 FY10 Out of which, Fresh 1,180.66 Slippages C. Reduction during Apr- 798.64 Dec, FY10 Of which, Recovery 275.93 Upgradation 187.68 PWO & WO 323.01 Exchange Differenc
Slide 30: Gross NPAs: Sectoral Break-up at end-Dec, 2009
Gross NPAs: Sectoral Break-up at end- Dec, 2009 Sector Gross NPA Gross NPA (%) (%) Apr-Dec’08 Apr-Dec’09 Agriculture 2.25 3.45 Large & Medium 0.86 1.23 Ind. Retail 2.85 2.34 Housing 3.43 2.50 SME 2.79 2.91
Slide 31: Restructured Loans: April, 2008 to December, 2009
Restructured Loans : April, 2008 to December, 2009 • During 21 months (1 Apr’08 to 31 Dec’09), Bank has restructured 65,487 accounts amounting Rs 4,801.35 crore. • Within this, the loans worth Rs 248.36 were restructured in Q3, FY10. • For the period of 21 months, out of the total amount restructure
Slide 32: Sectoral Deployment of Credit in Apr-Dec, FY10
Sectoral Deployment of Credit in Apr- Dec, FY10 Sector % share in Gross Domestic Credit Agriculture 15.94% Retail 18.91% SME 17.16% Trading plus Others 16.45% Wholesale 31.54% Total 100.0%
Slide 33: Emerging Economic Scenario
Emerging Economic Scenario • Global economic recovery, currently underway, is expected to slow later in 2010, as the impact of fiscal stimulus wanes. • According to the World Bank’s latest assessment, financial markets in developed countries remain troubled and private sector demand lags amid high u
Slide 34: Bank's Guidance & Vision
Bank’s Guidance & Vision •The Bank would continue with its thrust on growth with quality & try to grow at above industry average to steadily expand its market share. •The Bank would protect the current soundness of its key financials like ROAA, ROE, EPS, BVPS, NPL Position etc., through its dedicate
Slide 35: Thank you.
B Thank you.