Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — FY2014 Earnings Presentation
33 slides from Bank of Baroda's earnings presentation, May 13, 2014
Slide 1: A Credible Show in Tough Times
Bank of Baroda: A Credible Show in Tough Times Performance Analysis: 2013-14 (FY14) Dr Rupa Rege Nitsure Chief Economist May 13, 2014
Slide 2: BOB's Results At A Glance
BOB’s Results At A Glance Results for Q4, FY14 Ratios for 2013-14 (FY14) Performance Growth Rs crore Parameter (y-o-y) Key Performance Ratio (in %) Net Profit 1,157 12.5 Return on Average Assets 0.75 Operating Profit 2,564 19.5 Return on Equity 13.0 Total Business 9,65,900 20.4 Cost-Income Ratio 43.
Slide 3: BOB's Results At A Glance: Sequential Improvement
BOB’s Results At A Glance Sequential Improvement In ….. Parameter Q1, FY14 Q2, FY14 Q3, FY14 Q4, FY14 Net Interest Rs 2,889 cr Rs 2,895 cr Rs 3,057 cr Rs 3,124 cr Income Fresh Slippages Rs 1,960 cr Rs 1,863 cr Rs 1,553 cr Rs 1,295 cr Incremental Rs 2,147 cr Rs 1,637 cr Rs 1,213 cr Rs 1,157 cr Restru
Slide 4: Bank's Key Strategic Initiatives in FY14
Bank’s Key Strategic Initiatives in FY14 • High-Cost Deposit at Preferential Rate (above Rs 1 crore) were lowered from Rs 24,279 crore at end- Mar, 2013 to Rs 12,700 crore at end-Mar, 2014 in the Bank’s domestic business. •To give a boost to Retail/MSME businesses, it brought down the effective cost
Slide 5: Bank of Baroda: Key Strengths
Bank of Baroda: Key Strengths Bank of Baroda is a 105 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 6: Domestic Branch Network
Domestic Branch Network (as on 31st Mar, 2014) No. of Domestic Branches •During FY09 to FY14, the Bank added 4,874 1,948 branches to its domestic network. 5000 4276 4500 3904 •During FY14, the Bank opened 601 new 4000 3100 3364 branches & merged 3 brs in its domestic 2926 3500 operations. 3000 •Duri
Slide 7: Concentration: Domestic Branch Network
Concentration (%): Domestic Branch Network (As on 31st Mar, 2014) Rest of India, 25.6 Gujarat, 19.0 Maharashtra, 10.9 UP & Uttaranchal, 23.0 South, 11.0 Rajasthan, 10.6
Slide 8: Pattern of Shareholding: 31st Mar, 2014
Pattern of Shareholding: 31st Mar, 2014 As on 31st Mar, 2014 Corp. Indian •Share Capital: Rs 430.68 crore Bodies Public Others 3.9% •Net worth: Rs 34,933 crore (up 13.7%, y-o-y) 4.7% 1.8% • FIIs 16.1% • B. V. per share (vs. F. V. per share: Rs 10): Rs 813.50 (up 11.6%, y-o-y) •Return on Equity: 13.0
Slide 9: Macro Environment: FY14
Macro Environment: FY14 • Underlying economic currents remained weak for India throughout FY14. • Official estimates place economic growth for FY14 at 4.9% supported by strong agricultural growth of 4.6%. • A deep slowdown continued in the mining and manufacturing sectors. In fact, it was the first
Slide 10: Business Expansion
Business Expansion Change Particular Y-O-Y Over Mar’13 Dec’13 Mar’14 (Rs crore) (%) Dec’13 (%) Global Business 8,02,069 8,56,218 9,65,900 20.4 12.8 Domestic Business 5,66,000 5,78,616 6,51,223 15.1 12.5 Overseas Business 2,36,069 2,77,602 3,14,677 33.3 13.3 Global Deposits 4,73,883 5,03,772 5,68,894
Slide 11: Business Expansion
Business Expansion Change Particular Y-O-Y Over Mar’13 Dec’13 Mar’14 (Rs crore) (%) Dec’13 (%) Global advances (Net) 3,28,186 3,52,446 3,97,006 21.0 12.6 Domestic Advances 2,24,294 2,37,674 2,72,169 21.3 14.5 Overseas Advances 1,03,891 1,14,772 1,24,837 20.2 8.8 Retail Credit 38,046 42,777 46,019 21
Slide 12: CASA Position
CASA Position Change Particular Y-O-Y Over Mar’13 Dec’13 Mar’14 (Rs crore) (%) Dec’13 (%) Global Saving Deposits 84,303 90,398 96,437 14.4 6.7 Domestic Savings Deposits 82,002 87,579 93,381 13.9 6.6 Overseas Savings Deposits 2,300 2,819 3,057 32.9 8.4 Global Current Deposits 35,678 41,668 50,050 40.
Slide 13: Bank's Profits & Key Components: Q4 FY13 & FY14
Bank’s Profits & Its Key Components: Q4, FY13 & FY14 Particular YOY Q4, FY13 Q4, FY14 (Rs crore) (%) Interest Income 9,072 10,289 13.4 Interest Expenses 6,258 7,164 14.5 NII (Spread) 2,814 3,124 11.0 Other Income 1,191 1,326 11.4 Staff Expenses 1,139 1,040 -8.7 Total Expenses 8,080 9,035 11.8 Operat
Slide 14: Bank's Profits & Key Components: FY13 & FY14
Bank’s Profits & Its Key Components: FY13 & FY14 Particular YOY FY13 FY14 (Rs crore) (%) Interest Income 35,197 38,940 10.6 Interest Expenses 23,881 26,974 13.0 NII (Spread) 11,315 11,965 5.7 Other Income 3,631 4,463 22.9 Staff Expenses 3,450 4,140 20.0 Total Expenses 29,754 34,049 14.4 Operating Pr
Slide 15: Deposit & Loan Costs: Q4 FY13 to Q4 FY14
Deposit & Loan Costs: Q4,FY13 to Q4,FY14 Particular (in %) Q4, Q1, Q2, Q3, Q4, FY13 FY14 FY14 FY14 FY14 Global Cost of Deposits 5.75 5.60 5.41 5.24 5.27 Domestic Cost of Deposits 7.41 7.23 7.29 7.10 7.18 Overseas Cost of Deposits 1.42 1.25 1.15 1.10 1.08 Global Yield on Advances 8.64 8.46 8.34 8.30
Slide 16: Investment Yields & NIMs
Investment Yields & NIMs: Q4,FY13 to Q4,FY14 Particular (in %) Q4, Q1, Q2, Q3, Q4, FY13 FY14 FY14 FY14 FY14 Global Yield on Investment 7.74 7.79 7.74 7.78 7.81 Domestic Yield on Investment 7.85 7.93 7.90 7.98 7.99 Overseas Yield on Investment 5.05 4.39 4.19 3.62 4.00 Global NIM 2.51 2.41 2.32 2.37 2
Slide 17: Non-Interest Income: Q4 of FY13 & FY14
Non-Interest income: Q4 of FY13 & FY14 % Change (Rs crore) Q43, FY13 Q4, FY14 (Y-O-Y) Commission, Exchange, 376.41 419.24 11.38 Brokerage Incidental Charges 89.93 112.46 25.05 Other Miscellaneous Income 59.25 69.89 17.96 Total Fee-Based Income 525.59 601.59 14.46 Trading Gains 288.17 89.30 -69.01 FX
Slide 18: Non-Interest Income: FY13 & FY14
Non-Interest income: FY13 & FY14 % Change (Rs crore) FY13 FY14 (Y-O-Y) Commission, Exchange, 1,257.36 1,437.39 14.32 Brokerage Incidental Charges 337.41 388.03 15.00 Other Miscellaneous Income 263.69 291.13 10.41 Total Fee-Based Income 1,858.46 2,116.55 13.89 Trading Gains 617.29 743.80 20.07 FX Pro
Slide 19: Provisions & Contingencies: Q4 of FY13 & FY14
Provisions & Contingencies: Q4 of FY13 & FY14 % (Rs crore) Q4, FY13 Q4, FY14 Change Provision for NPA & Bad Debts 1097.24 637.42 -41.91 Written-off Provision for Depreciation on 211.16 293.40 38.95 Investment Provision for Standard Advances 220.35 191.27 -13.20 Other Provisions (including 69.66 31.0
Slide 20: Provisions & Contingencies: FY13 & FY14
Provisions & Contingencies: FY13 & FY14 % (Rs crore) FY13 FY14 Change Provision for NPA & Bad Debts 3,449.44 2,967.72 -13.97 Written-off Provision for Depreciation on 225.46 198.59 -11.92 Investment Provision for Standard Advances 393.80 535.04 35.87 Other Provisions (including 99.22 92.36 -6.91 Pro
Slide 21: Bank's Domestic Treasury Highlights
Bank’s Domestic Treasury Highlights: Q4 & Full year FY14 • Trading Gains improved from Rs 617 crore in FY13 to Rs 741 crore in FY14 reflecting growth of 20.1%. Despite heightened volatility in financial markets, trading gains remained decent on y-o-y basis. • The FX Profits too increased by a signif
Slide 22: Highlights of Overseas Business
Highlights of Overseas Business: Q4 & Full Year FY14 • During FY14, the Bank’s “Overseas Business” contributed 32.6% to its Total Business, 24.2% to Gross Profit and 30.5% to Core Fee-based income (i.e., Commission, Exchanges, brokerage, etc.) • Out of the Total Overseas Loan-book, 48.5% was Buyers’
Slide 23: NPA Movement (Gross): FY14
NPA Movement (Gross): FY14 Particular ( Rs crore) A. Opening Balance 7,982.58 B. Additions during FY14 6,833.93 Out of which, Fresh Slippages 6,469.62 C. Reduction during FY14 Recovery 1,261.81 Upgradation 684.72 PWO & WO 963.52 Other Adjustments 30.56 NPA as on 31st Mar, 2014 11,875.90 Recovery in
Slide 24: Sector-wise Gross NPA
Sector-wise Gross NPA [Sequential Movement] Gross NPA Gross NPA Gross NPA Gross NPA (%) (%) (%) (%) Sector End-June, End-Sept, End-Dec, End-Mar, 2013 2013 2013 2014 Agriculture 5.29 5.76 5.77 5.35 Large & Medium Industries 5.06 5.56 6.03 5.05 Retail 2.24 2.52 2.11 1.96 Housing 1.52 1.91 1.47 1.45 MS
Slide 25: Restructured Accounts (Domestic)
Restructured Accounts (Domestic) Year Outstanding as on 31st March, 2014 (Rs crore) Standard Category NPA Category Grand total No. of A/Cs Amount No of A/Cs Amount No of A/Cs Amount Up to 2008 112 581.15 161 7.66 273 588.81 2008-09 4,841 856.07 3,874 177.05 8,715 1,033.12 2009-10 2,457 1,475.41 1,55
Slide 26: Restructured Accounts
Restructured Accounts •In its global operations, the Bank restructured loans to the tune of Rs 1,157 cr (6,556 accounts) in Q4, FY14 versus Rs 1,213 crore (6,173 accounts) in Q3, FY14. •For the full year FY14, the amount restructured was Rs 6,397 cr as against Rs 8,506 cr in FY13. •As on 31st March,
Slide 27: Sectoral Deployment of Credit at end-Mar, 2014
Sectoral Deployment of Credit at end-Mar, 2014 % share in Gross Sector Domestic Credit Agriculture 10.2 Retail 16.6 SME 20.3 Large & Medium 32.1 Misc. including Trade 20.8 Total 100.0%
Slide 28: Technology Initiatives in FY14
Technology Initiatives in FY14 •Under various alternate delivery channels (like ATM, Internet Banking, Mobile Banking etc) the Bank had the following value additions during FY14. •e-Banking •IMPS (Immediate Payment Services) implemented for funds-transfer through Mobile number and MMID of beneficiar
Slide 29: Technology Initiatives in FY14
Technology Initiatives in FY14 •ATM (Contd.) •Online Hot listing between Card Management System and Base 24 switch completed •Regional language screen selection option provided in Marathi, Gujarati and Tamil & talking ATMs for visually impaired persons. •Mobile Banking •Mobile Banking application (B
Slide 30: Technology Initiatives in FY14
Technology Initiatives in FY14 •Other Initiatives during FY14 •Activated online Fund Transfer to other country through SWIFT message for UAE territory. •Created module for sale of RBI Inflation Index Bond •National Automated Clearing House (NACH): Both Debit and Credit processing completed. •Cheque
Slide 31: Bank's BPR Project – New Initiatives in FY14
Bank’s BPR Project – New Initiatives in FY14 •Bank’s BPR Project or Navnirmaan has altogether 18 initiatives covering both business process re-engineering and organizational re-structuring, aimed at transforming the Bank’s branches into the “Sales and Service Centres” through Centralization to make
Slide 32: New Recruitment in FY14
New Recruitment in FY14 Category Proposed Joined up to 30/03/2014 Total New Hiring for FY14 6,300 5,810 Of which: Probationary Officers 1,530 1494 Specialist Officers 389 321 Baroda Manipal Trainees 870 859 Campus Recruitment 11 11 Clerks 3,500 3,125 *No. of Employees superannuated in FY14: 1,566 •A
Slide 33: Bank's Forward Guidance
Bank’s Forward Guidance •Indian economy is expected to recover gradually in FY15, supported by political stability & enabling policy framework, relatively stronger global economic growth and improved competitiveness of exports. •This augurs well for the banking business. Also comfortable liquidity p