Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — Q1 FY2013 Earnings Presentation
33 slides from Bank of Baroda's earnings presentation, Jul 30, 2012
Slide 1: Bank of Baroda: A Journey of Sustained Soundness
Bank of Baroda: A Journey of Sustained Soundness erformance Analysis: Q1, 2012-13 (FY13 Performance Dr Rupa Rege Nitsure Chief Economist July 30, 2012
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 India and 24 other countries. Uninterrupted Record Overseas Business Modern
Slide 3: Results at a Glance
Results at a Glance .. •Net Profit up 10.3%(y-o-y) to Rs 1,139 crore •Operating Profit up 23.0% (y-o-y) to Rs 2,253 crore •Net Interest Income up 21.8% (y-o-y) to Rs 2,798 crore •Total Business up 22.6% (y-o-y) to Rs 6,68,552 crore •Total Advances up 23.02% (y-o-y) •Total Deposits up 22.3% (y-o-y) •
Slide 4: Domestic Branch Network
Domestic Branch Network No. of Domestic Branches •In a year’s time, the Bank added 391 3 504 brs to its domestic network 4000 3409 comprising 121 in metro; 77 in 3500 2851 2927 31 06 urban; 204 in semi-urban & 102 3000 in rural areas. 2500 •During Q1, FY13, the Bank opened 10 new brs (3 in metro, 5
Slide 5: Robust Technology Platform
Robust Technology Platform •Bank’s entire domestic, overseas and RRBs Framework is CBS-compliant •All domestic branches are migrated to MPLS (Multi-Protocol Label Switching) network. New branches are directly opened in MPLS network •Bank has IT facilities for online/offline account opening through B
Slide 6: Robust Technology Platform
Robust Technology Platform •Bank’s ATM Switch is upgraded to handle increasing volume of ATM transactions ; the Bank’s ATM count has increased to 2,130 by 30th June, 2012; its ATM switch also supports eight international territories. •Bank has a Facility of Multiple Accounts being linked to a single
Slide 7: Robust Technology Platform
Robust Technology Platform •ACPC (Automated Cheque Processing Centre) for centralised Inward / Outward clearing has been implemented in Mumbai, Surat and Ahmedabad regions of the Bank. •Back Office functions are centralised in the Bank at its City Back Offices & ten Regional Back Offices (at Baroda,
Slide 8: Concentration (%): Domestic Branch Network
Concentration (%): Domestic Branch Network Rest of India, 23.1 Gujarat, 20.8 Maharashtra, 11.9 UP & Uttaranchal, 21.9 South, 11.2 Rajasthan, 11.1
Slide 9: Pattern of Shareholding: 30th June, 2012
Pattern of Shareholding: 30th June, 2012 As on 30th June, 2012 Corp. Indian Bodies •Share Capital: Rs 412.38 crore Public 6.58% Others 4.93% 0.38% •No. of Shares: 411.12 million • Net worth: Rs 27889.31 crore (up FIIs 34.2%, y-o-y) 14.34% • B. V. per share: Rs 678.37 (up 27.8%, y-o-y) •Return on Equ
Slide 10: India's Macro Health: Q1, FY12 to Q1, FY13
India’s Macro Health: Q1, FY12 to Q1, FY13 Economic Indicator Q1, FY12 Q2, FY12 Q3, FY12 Q4, FY12 Q1, FY13 Real GDP growth (%) 8.0 6.7 6.1 5.3 NA Agriculture (%) 3.7 3.1 2.8 1.7 NA Industry (%) 5.7 2.8 0.8 0.7 NA Services (%) 10.2 8.7 8.7 7.5 NA Private Consumption Expenditure growth (%) (at 14.2 14
Slide 11: Bank's Business Growth (Y-O-Y): Jun'07 to Jun'12
Bank’s Business Growth (Y-O-Y): Jun’07 to Jun’12 Growth: Total Deposits (%) Growth: Total Advances (%) 28.2 28.23 30.0 26.5 42.1 22.88 45.0 22.7 22.3 25.0 40.0 30.7 35.0 27.5 27.7 25.2 20.0 30.0 23.0 25.0 15.0 20.0 10.0 15.0 10.0 5.0 5.0 0.0 0.0 Growth: Total Business (%) Domestic CASA Growth (%) 32
Slide 12: Bank's Profitability: Jun'07 to Jun'12
Bank’s Profitability: Jun’07 to Jun’12 2500.00 Rs crore •During the last five years, the Bank’s First 2253.18 Quarter Net Profit has grown at the rich CAGR 2000.00 of 28.1% . 1831.28 1527.87 1500.00 1138.86 1032.85 1009.94 1000.00 859.16 800.19 685.38 644.45 500.00 330.83 370.86 0.00 Jun'07 Jun'08 J
Slide 13: Bank's Asset Quality: Jun'06 to Jun'12
Bank’s Asset Quality: Jun’06 to Jun’12 % 4 2 % 1.8 3.5 1.6 3 2.78 1.4 2.5 1.2 1.86 1.84 2 1 Gross NPA 1.44 1.41 1.46 Net NPA 0.92 0.8 1.5 0.67 0.65 0.6 1 0.52 0.4 0.44 0.5 0.39 0.27 0.2 0 0 Jun'06 Jun'07 Jun'08 Jun'09 Jun'10 Jun'11 Jun'12
Slide 14: Bank's Business Performance: Jun'11 to Jun'12
Bank’s Business Performance: Jun’11 to Jun’12 Change Particular Y-O-Y Over Jun’11 Mar’12 Jun’12 (Rs crore) (%) Mar’11 (%) Global Business 5,45,283 6,72,248 6,68,552 22.6% -1.0% Domestic Business 4,05,156 4,82,211 4,73,825 17.0% -1.7% Overseas Business 1,40,127 1,90,038 1,94,726 39.0% 2.5% Global Dep
Slide 15: Bank's Business Performance: Jun'11 to Jun'12
Bank’s Business Performance: Jun’11 to Jun’12 Change Particular Y-O-Y Over Jun’11 Mar’12 Jun’12 (Rs crore) (%) Mar’11 (%) Global advances (Net) 2,32,340 2,87,377 2,85,813 23.0% -0.5% Domestic Advances 1,68,621 2,02,075 1,95,986 16.2% -3.0% Overseas Advances 63,719 85,302 89,827 41.0% 5.3% Retail Cre
Slide 16: Bank's Business Performance: Jun'11 to Jun'12
Bank’s Business Performance: Jun’11 to Jun’12 Change Particular Y-O-Y Over Jun’11 Mar’12 Jun’12 (Rs crore) (%) Dec’10 (%) Global Saving Deposits 65,654 74,580 75,562 15.1% 1.3% Domestic Savings Deposits 64,162 72,575 73,519 14.6% 1.3% Overseas Savings Deposits 1,491 2,004 2,043 37.0% 1.9% Global Cur
Slide 17: Bank's Profits & NII: Apr-Jun, FY12 & FY13
Bank’s Profits & NII: Apr-Jun, FY12 & FY13 Particular Y-O-Y Apr-Jun’11 Apr-Jun’12 (Rs crore) (%) Gross Profit 1,831 2,253 23.0% Net Profit 1,033 1,139 10.3% Net Interest 2,297 2,798 21.8% Income
Slide 18: Other Highlights: Q1, FY12 versus Q1, FY13
Other Highlights: Q1,FY12 versus Q1,FY13 Particular (in %) Q1, Q2, Q3, Q4, Q1, FY12 FY12 FY12 FY12 FY13 Global Cost of 5.36 5.61 5.65 5.81 5.89 Deposits Domestic Cost of 6.41 6.84 6.90 7.17 7.30 Deposits Overseas Cost of 1.80 1.82 1.96 1.74 1.86 Deposits Global Yield on 9.11 9.64 9.45 9.33 9.08 Adva
Slide 19: Other Highlights: Q1, FY12 versus Q1, FY13
Other Highlights: Q1, FY12 versus Q1,FY13 Particular (in %) Q1, Q2, Q3, Q4, Q1, FY12 FY1 FY1 FY12 FY13 2 2 Global Yield on 7.47 7.58 7.67 7.53 7.71 Investment Domestic Yield on 7.59 7.72 7.79 7.69 7.83 Investment Overseas Yield on 4.86 4.24 4.90 3.84 4.91 Investment Global NIM 2.87 3.07 2.99 2.96 2.
Slide 20: Key Financial Ratios: Q1, FY13
Key Financial Ratios : Q1, FY13 Return on Average Assets at 1.01% Earning per Share at Rs 110.80 Book Value per Share at Rs 678.37 Return on Equity (ROE) at 16.33% Capital Adequacy Ratio at 13.74% with Tier I Capital at 10.13% • Cost-Income Ratio at 37.21% Gross NPA ratio at 1.84% Net
Slide 21: Key Productivity Indicators: Q1, FY12 versus Q1, FY13
Key Productivity Indicators: Q1, FY12 versus Q1, FY13 Particulars Q1, FY12 Q1, FY13 Business per Employee (Rs 12.65 14.79 crore) Business per Branch (Rs 157.45 169.49 crore) Profit per Employee (Rs 10.26 10.81 lakh) Profit per Branch (Rs lakh) 119.30 114.80
Slide 22: Non-Interest Income: Q1, FY12 and Q1, FY13
Non-Interest Income: Q1, FY12 and Q1, FY13 % Q1, Change (Rs crore) Q1, FY12 FY13 (Y-O-Y) Commission, Exchange, 274.77 275.93 0.4% Brokerage Incidental Charges 79.55 82.82 4.1% Other Miscellaneous 43.76 55.45 55.5% Income Total Fee-Based 398.08 414.20 4.1% Income Trading Gains 74.02 81.51 10.1% Profi
Slide 23: Provisions & Contingencies: Q1, FY12 and Q1, FY13
Provisions & Contingencies: Q1, FY12 and Q1, FY13 Absolut Q1, Q1, e (Rs crore) FY12 FY13 Change Provision for NPA & Bad 131.95 812.11 680.16 Debts Written-off Provision for Depreciation 138.54 75.99 -62.55 on Investment Provision for Standard 112.94 3.34 -109.6 Advances Other Provisions (including P
Slide 24: Bank's Treasury Highlights
Bank’s Treasury Highlights: Q1, FY12 • Treasury Income stood at the level of Rs 273.61 crore (up 27.8%, y-o-y) in Q1, FY13. • Out of this, Trading Gains Stood at Rs 81.51 crore in Q1, FY13 despite extremely volatile financial market conditions. • As of June 30, 2012, the share of SLR Securities in T
Slide 25: Overseas Business
Overseas Business: Q1, FY12 • As on 30th June, 2012, the “Overseas Business” contributed 29.1% to the Bank’s Total Business, 23.7% to its Gross Profit and 36.2% to its Core Fee income. • While the Cost-Income Ratio for Domestic Operations stood at 41.51% in Q1, FY13, it was more favourable at 17.78%
Slide 26: NPA Movement (Gross): Q1, FY13
NPA Movement (Gross): Q1, FY13 Particular ( Rs crore) A. Opening Balance 4,464.75 B. Additions during Q1, FY13 1,256.66 Out of which, Fresh 1,221.22 Slippages C. Reduction during Q1, 454.62 FY13 Recovery 124.92 Upgradation 134.18 PWO & WO 195.52 Exchange Difference 52.62 NPA as on 30th June, 2012 5,
Slide 27: Sector-wise Gross NPAs: Q1, FY12 versus Q1, FY13
Sector-wise Gross NPAs: Q1, FY12 versus Q1, FY13 Sector Gross NPA Gross NPA (%) (%) Q1, FY12 Q1, FY13 Agriculture 4.10 4.66 Large & Medium 1.80 1.63 Industries Retail 2.11 2.00 Housing 1.96 1.70 SSI (Mfg) 1.50 4.78 Total MSME 2.50 3.49 Overseas 0.62 0.69 Operations
Slide 28: Cumulative Position of Restructured Assets
Cumulative Position of Restructured Assets • During the past 51 months (1 Apr’08 to 30 June’12), the Bank has restructured 86,596 accounts amounting Rs 15,747.41 crore in its Domestic operations. • Within this, the loans worth Rs 770.57 crore were restructured in Q1, FY13; Rs 8,265.41 crore were res
Slide 29: Sectoral Deployment of Credit at end-June, 2011
Sectoral Deployment of Credit at end-June, 2011 % share in Gross Sector Domestic Credit Agriculture 13.9% Retail 16.5% SME 17.2% Wholesale 37.8% Misc. including 14.6% Trade Total 100.0%
Slide 30: 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 31: Bank's BPR Project - Navnirmaan
Bank’s BPR Project - Navnirmaan •The initial impact of Baroda Next migration has been observed to be rewarding both in terms of increased customer satisfaction & CASA growth. •The said impact has been sustained at 110 Baroda Next brs evaluated on sales, customer satisfaction, etc., during the first
Slide 32: Bank's HR Initiatives
Bank’s HR Initiatives Recruitment – 2012-13 •Bank’s HR Function has focused on hiring efforts on a sustained basis to bridge the “gap” created by superannuation and to cater to the Bank’s consistent business growth and branch expansion •Bank’s Proposed New Hiring in FY13: 3,400 •Probationary Officer
Slide 33: Future Outlook & Guidance
Future Outlook & Guidance •The ongoing industrial slowdown, deficient monsoon & continued stresses in the global economy imply that India’s growth could be in the band of 6.0% to 6.2% in FY13. •According to the latest assessment by ICRA Ltd., Nominal GDP for India will expand by 14.0%, Bank Deposits