Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — FY2012 Earnings Presentation
39 slides from Bank of Baroda's earnings presentation, May 4, 2012
Slide 1: Bank of Baroda: Performance Analysis Q4 & Full Year 2011-12
Bank of Baroda ia’s Leading Banking Brand that Made a Differe ormance Analysis: Q4 & Full Year , 2011-12 (FY Dr Rupa Rege Nitsure Chief Economist May 4, 2012
Slide 2: 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 & Contempora
Slide 3: Results At A Glance (FY12)
Results At A Glance (FY12) … •Global Business Size: Rs 6,72,248 crore on 31st Mar, 2012 [up 25.9%, y-o-y] •Market Share in Aggregate Deposits up from 3.70% in Mar’07 to 4.31% in Mar’12 •Market Share in Credit up from 3.53% in Mar’07 to 4.19% in Mar’12 •Global Loan-book: Rs 2,87,377 crore on 31st Mar
Slide 4: Performance during FY08 thru' FY12
Performance during FY08 thru’ FY12 …. 2007-08 2008- 2009-10 2010- 2011- CAGR 09 11 12 (for 4 yrs) Assets 3,58,39 4,47,32 1,83,479 2,26,672 2,78,317 25.0% (Rs crore) 7 1 Net Profit 1,436 2,227 3,058 4,242 5,007 36.6% (Rs crore) Tier 1 Capital (Rs 8,496 11,070 14,357 20,974 27,498 34.1% crore) Return
Slide 5: Domestic Branch Network
Domestic Branch Network …. No. of Domestic Branches •During the last five yrs, the Bank 3904 has added 1,172 brs to its 4000 31 00 3364 domestic network. 3500 2853 2926 2732 •During FY12, the Bank opened 3000 540 new brs and merged just one 2500 br. 2000 •During FY13, the Bank proposes 1500 to open
Slide 6: Rich Technology Platform
Rich Technology Platform … •The Bank’s entire domestic, overseas and RRBs Framework is CBS-compliant. •The Bank has IT facilities for online/offline account opening through Business Correspondents under Financial Inclusion. •The Bank has implemented Internet Banking in 11 of its overseas territories
Slide 7: Rich Technology Platform
Rich Technology Platform…. •The Bank has set up two Contact Centres in Lucknow & Baroda to address customer queries & grievances without any delay. •Cash Management Solution is implemented to provide Operational Support to the Customers’ ALM. •Anti Money Laundering (AML) is implemented in India and
Slide 8: Concentration (%): Domestic Branch Network
Concentration (%): Domestic Branch Network … Rest of India, 21.95 Gujarat, 20.85 Maharashtra, 11.81 UP & Uttaranchal, 21.93 South, 11.16 Rajasthan, 11.09
Slide 9: Pattern of Shareholding: 31st Mar, 2012
Pattern of Shareholding: 31st Mar, 2012 … As on 31st Mar, 2012 Corp. •Share Capital: Rs 412.38 crore Indian Bodies Others 6.2% •No. of Shares: 411.12 million Public 2.6% • 4.8% • Net worth: 33.2%, yoy) Rs 26,303.17 crore (up FIIs 14.0% • B. V. per share: Rs 639.79 (up 26.8%, yoy) •Return on Equity:
Slide 10: Awards & Accolades in FY12
Awards & Accolades in FY12…. 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 2011 • Most Eff
Slide 11: India's Macro Health: FY12
India’s Macro Health: FY12 …. •After 2 yrs of fairly robust growth of 8.4%, India’s GDP is estimated at 6.9% for FY12 •While agriculture & services maintained growth momentum in FY12, industry slowed down sharply, led by contraction in mining & manufacturing segments •Capacity utilisation in various
Slide 12: Bank Proved its Resilience Again in FY12
Bank Proved its Resilience Again in FY12 …. Growth: Total Deposits (%) Growth: Total Advances (%) 34.3 35.0 30.7 26.6 26.6 27.6 30.0 25.4 26.0 30.0 21.7 25.7 25.0 25.0 22.2 20.0 20.0 15.0 15.0 10.0 10.0 5.0 5.0 0.0 0.0 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Growth: Tot
Slide 13: Steadily Improving Profitability during the last 5 yrs
Steadily Improving Profitability during the last 5 yrs ….. 10000.00 Rs crore •During the last five years, the Bank’s Net 9000.00 Profit has grown at the robust CAGR of 37.3% 8630.37 on the back of smart business strategising. 8000.00 6981.61 7000.00 6000.00 5006.96 5000.00 4935.26 4305.01 4241.68 40
Slide 14: Asset Quality Stresses Kept to the Minimum
Asset Quality Stresses Kept to the Minimum ….. % 4 2 % 3.90 1.8 3.5 1.6 3 1.4 2.47 2.5 1.2 1.84 2 1 Gross NPA 1.36 1.53 1.27 Net NPA 1.36 0.8 1.5 0.87 0.6 0.6 1 0.54 0.47 0.4 0.35 0.5 0.31 0.34 0.2 0 0 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12
Slide 15: Healthy Growth in Business during FY'12
Healthy Growth in Business during FY’12 …… Change Particular Y-O-Y Over Mar’11 Dec’11 Mar’12 (Rs crore) (%) Dec’11 (%) Global Business 5,34,116 6,09,867 6,72,248 25.9 10.2 Domestic Business 4,02,731 4,35,228 4,82,211 19.7 10.8 Overseas Business 1,31,385 1,74,639 1,90,038 44.6 8.8 Global Deposits 3,0
Slide 16: Healthy Growth in Business during FY'12
Healthy Growth in Business during FY’12 …… Change Particular Y-O-Y Over Mar’11 Dec’11 Mar’12 (Rs crore) (%) Dec’11( %) Global advances (Net) 2,28,676 2,60,661 2,87,377 25.7 10.2 Domestic Advances 1,69,408 1,80,234 2,02,075 19.3 12.1 Overseas Advances 59,269 80,427 85,302 43.9 6.1 Retail Credit 32,43
Slide 17: Decent Growth in CASA Despite Elevated Term Deposit Rates
Decent Growth in CASA Despite Elevated Term Deposit Rates .. Change Particular Y-O-Y Over Mar’11 Dec’11 Mar’12 (Rs crore) (%) Dec’11 (%) Global Saving 64,454 71,842 74,580 15.7 3.8 Deposits Domestic Savings 62,959 70,169 72,575 15.3 3.4 Deposits Overseas Savings 1,495 1,674 2,004 34.1 19.7 Deposits
Slide 18: Bank's Profits & NII: Jan-Mar, FY11 & FY12
Bank’s Profits & NII: Jan-Mar, FY11 & FY12 Particular Y-O-Y Jan-Mar’11 Jan-Mar’12 (Rs crore) (%) Gross Profit 1,945.81 2,050.93 5.4% Net Profit 1,294.35 1,518.18 17.3% Net Interest 2,613.88 2,797.40 7.0% Income •The Bank’s NII grew sequentially from Rs 2,297.19 crore in Apr- Jun FY12 to Rs 2,567 cro
Slide 19: Deposit & Loan Costs: Q4,FY11 to Q4,FY12
Deposit & Loan Costs: Q4,FY11 to Q4,FY12 Particular (in %) Q4, Q1, Q2, Q3, Q4, FY11 FY12 FY12 FY12 FY12 Global Cost of Deposits 4.79 5.36 5.61 5.65 5.81 Domestic Cost of Deposits 5.63 6.41 6.84 6.90 7.17 Overseas Cost of Deposits 1.83 1.80 1.82 1.96 1.74 Global Yield on 8.74 9.11 9.64 9.45 9.33 Adva
Slide 20: Investment Yields & NIMs: Q4, FY11 to Q4,FY12
Investment Yields & NIMs: Q4, FY11 to Q4,FY12 Particular (in %) Q4, Q1, Q2, Q3, Q4, FY11 FY12 FY1 FY1 FY1 2 2 2 Global Yield on 7.45 7.47 7.58 7.67 7.53 Investment Domestic Yield on 7.60 7.59 7.72 7.79 7.69 Investment Overseas Yield on 4.34 4.86 4.24 4.90 3.84 Investment Global NIM 3.45 2.87 3.07 2.
Slide 21: Key Financial Ratios: FY12 versus FY11
Key Financial Ratios : FY12 versus FY11 Return on Average Assets at 1.24% [1.33% in FY11] Earning per Share at Rs 127.84 [Rs 116.37 in FY11] Book Value per Share at Rs 639.79 [Rs 504.43 in FY11] Return on Equity (ROE) at 19.04% [21.48% in FY11] Capital Adequacy Ratio at 14.67% with Tier I
Slide 22: Consistent Improvement in Productivity Indicators
Consistent Improvement in Productivity Indicators … Q1, Q2, Q3, Q4, FY12 FY12 FY12 FY12 Business per Employee (Rs 12.65 12.98 13.53 14.66 cr) Business per Branch (Rs cr) 157.45 160.27 162.85 169.80 Profit per Employee (Rs 10.26 11.39 12.27 14.00 lakh) Profit per Branch (Rs lakh) 119.30 131.54 137.77
Slide 23: Other Income in FY12 Vs FY11
Other Income in FY12 Vs FY11 … % (Rs crore) FY11 FY12 Change (Y-O-Y) Commission, Exchange, 1,020.64 1,226.08 20.1 Brokerage Incidental Charges 346.46 316.23 -8.7 Other Miscellaneous Income 210.97 253.85 20.3 Total Fee-Based Income 1,578.07 1,796.16 13.8 Trading Gains 443.70 606.67 36.7 Profit on Exc
Slide 24: Other Income in Q4, FY12 Vs Q4, FY11
Other Income in Q4, FY12 Vs Q4, FY11…. % (Rs crore) Q4, FY11 Q4, FY12 Change (Y-O-Y) Commission, Exchange, 326.27 344.69 5.6 Brokerage Incidental Charges 104.72 87.63 -16.3 Other Miscellaneous Income 50.71 58.91 16.2 Total Fee-Based Income 481.70 491.23 2.0 Trading Gains 120.86 137.01 13.4 Profit on
Slide 25: Provisions & Contingencies: FY11 and FY12
Provisions & Contingencies: FY11 and FY12 … Absolute (Rs crore) FY11 FY12 Change Provision for NPA & Bad 1,050.60 1,865.19 814.6 Debts Written-off Provision for Depreciation 9.01 236.33 227.3 on Investment Provision for Standard 223.85 448.17 224.3 Advances Other Provisions (including Provision for
Slide 26: Provisions & Contingencies: Q4, FY12 Vs Q4, FY11
Provisions & Contingencies: Q4, FY12 Vs Q4, FY11 Absolute (Rs crore) Q4, FY11 Q4, FY12 Change Provision for NPA & Bad 424.39 926.19 501.8 Debts Written-off Provision for Depreciation 34.58 -271.31 -305.9 on Investment Provision for Standard 106.10 188.79 82.7 Advances Other Provisions (including 25.
Slide 27: Bank's Domestic Treasury Highlights: Q4 and Full Year, FY12
Bank’s Domestic Treasury Highlights: Q4 and Full Year, FY12 • Treasury Income stood at the healthy level of Rs 300.17 crore in Q4, FY12 and at Rs 1,297.41 crore in FY12 • The Bank’s Trading Gains Stood at Rs 137.01 crore in Q4, FY12 and at Rs 606.67 crore in FY12. • As of March 31, 2012, the share o
Slide 28: Highlights of Overseas Business: FY12
Highlights of Overseas Business: FY12 • As on 31st Mar, 2012, Bank had operations in 24 countries; it opened five new branches during FY12, notably, in Uganda (1), Kenya (2), UAE (1) and Guyana (1) taking the total tally to 89 offices • During FY12, Bank’s “Overseas Business” contributed 28.3% to th
Slide 29: Capital Adequacy in FY12
Capital Adequacy in FY12…. • The Bank’s CRAR (Basel II) as on 31 st Mar., 2012 was at 14.67%; of which Tier1 was at 10.83% and Tier 2 at 3.84% • The size of Bank’s risk-weighted assets as on 31 st March, 2012 was Rs 2,53,733.75 crore • The Bank proposes to maintain its CRAR in the band of 13.0% to 1
Slide 30: NPA Movement (Gross): FY12
NPA Movement (Gross): FY12… Particular ( Rs crore) A. Opening Balance 3,152.50 B. Additions during FY12 3,443.31 Out of which, Fresh Slippages 3,291.43 C. Reduction during FY12 2131.06 Recovery 580.46 Upgradation 335.55 PWO & WO 1,215.05 Exchange Difference 0.00 NPA as on 31st March, 2012 4,464.75 R
Slide 31: Sector-wise Gross NPAs: FY12 versus FY11
Sector-wise Gross NPAs: FY12 versus FY11… Sector Gross NPA (%) Gross NPA (%) FY11 FY12 Agriculture 3.41 3.99 Large & Medium 1.77 1.06 Industries Retail 1.79 1.91 Housing 1.92 1.94 SSI (Mfg) 1.25 2.24 Total MSME 2.66 3.19 Overseas Operations 0.62 0.68
Slide 32: Cumulative Position of Restructured Assets
Cumulative Position of Restructured Assets …. • During the past 48 months (1 Apr’08 to 31 Mar’12), the Bank has restructured 84,498 accounts in its domestic business amounting Rs 15,084.23 crore. • Within this, the loans worth Rs 8,514.91 crore were restructured in FY12 • For the period of 48 months
Slide 33: Sectoral Deployment of Credit in FY12
Sectoral Deployment of Credit in FY12 … Sector % share in Gross Domestic Credit Agriculture 14.1% Retail 17.4% SME 16.8% Wholesale 38.7% Misc. including 13.0% 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 gro
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 FY12 • Focused hiring efforts on a sustained basis year on year, to cater tosuperannuation, sustained business growth and rapid Branch expansion -------------------------------------------------- • New Hiring in FY12: 3,250 Probationary Officers – 1,012 joi
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…….. • We expect India’s industrial scenario to improve during FY13 • The OECD Leading Index for India that leads industrial output growth, has trended higher and continues to point to a pick-up in output growth in the coming quarters. • Factors such as a cut in policy rat
Slide 39: Thank you.
B Thank you.