Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — H1 FY2011 Earnings Presentation
36 slides from Bank of Baroda's earnings presentation, Oct 28, 2010
Slide 1: Bank of Baroda: A Bank of Credible Track Record
Bank of Baroda A Bank of Credible Track Record ( Q2 & H1 , 2010-11) Dr Rupa Rege Nitsure Chief Economist October 28, 2010
Slide 2: Bank of Baroda: Key Strengths
Bank of Baroda: Key Strengths Bank of Baroda is a 102 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 3: Domestic Branch Network
Domestic Branch Network No. of Domestic Branches •Bank’s network of domestic 3300 3202 branches as on 30th Sept., 3200 2010 was 3,202 & no. of ATMs 3100 3029 were 1,443 . 3000 2886 •During H1, FY11, Bank 2900 2775 opened 104 new branches 2709 2800 and merged two existing 2700 branches. 2600 •Around
Slide 4: Robust Technology Platform
Robust Technology Platform •As on 30 Sept 2010, all domestic branches, that is 3,202 branches and 38 extension counters were on CBS. •Additionally, 47 branches of 15 overseas territories and 28 branches of eight overseas subsidiaries are on the CBS covering 96.15% of the Bank’s overseas network. •A
Slide 5: Concentration (%): Domestic Branch Network
Concentration (%): Domestic Branch Network Rest of India, 21.61 Gujarat, 22.14 Maharashtra, 11.18 UP & Uttaranchal, 22.48 South, 10.85 Rajasthan, 11.74
Slide 6: Pattern of Shareholding: 30th Sept, 2010
Pattern of Shareholding: 30th Sept, 2010 As on 30th Sept., Indian Corp. 2010 Bodies •Share Capital Rs 365.53 crore Public 4.8% Others 6.0% 0.2% •No. of Shares 364.27 million • Net worth Rs 15,669.06 crore FIIs 18.5% • B. V. per share Rs 430.15 •Return on Equity (annualised): 23.98% • BOB is a Part o
Slide 7: Comparative Performance of BoB Stock: Sept'09 to Sept'10
Comparative Performance of BoB Stock: Sept’09 to Sept’10 Value Value Index/Stock (30th (30th % Sept’09) Sept’10) Change Sensex 17,126.84 20,069.12 17.2% Nifty 5,083.95 6,029.95 18.6% Bankex 9,855.60 14,025.04 42.3% BankNifty 8,812.35 12,366.35 40.3% BoB-BSE 482.40 872.80 80.9% BoB-NSE 481.70 872.50
Slide 8: Awards & Accolades
Awards & Accolades •The Bank has received several awards during the calendar 2010 for its consistent outstanding performance (both business & financial), superior management, dedication to excellence and contribution to rural economy & financial inclusion. •It is the only Indian bank whose “Rank” ha
Slide 9: Indian Macro Scene during Sep'09 to Sep'10
Indian Macro Scene during Sep’09 to Sep’10 IIP Growth (%) WPI (%) 11.39 10.31 20 12 11.00 10.23 18 16.3 15.2 9.68 10.28 8.51 14.5 10 8.53 16 17.7 14 12 11.5 8 6.92 12 9.3 14.7 15.2 8.62 10 6 1.48 8 10.2 4 4.50 6 4 5.8 2 1.09 2 5.6 0 0 Jan'10 Jul'10 Nov'09 May'10 Sep'09 Mar'10 Sept'10 9 9 9 t'0 ct'0
Slide 10: Economic & Policy Environment in H1, FY11
Economic & Policy Environment in H1, FY11 •The IMF’s latest World Economic Outlook (Oct. 6) says global economic recovery is proceeding, but it is an unbalanced recovery. •Global recovery is sluggish in advanced countries but much stronger in emerging and developing economies. •India’s GDP grew 8.8%
Slide 11: Economic & Policy Developments in H1, FY11
Economic & Policy Developments in H1, FY11 •However, capital account surplus on the back of short term credit, ECBs, banking capital, etc., has been adequately financing the current account deficit. •Net investment of portfolio investors in India’s debt & equity segments amounted to US $27.12 bln in
Slide 12: Bank's Business Growth (Y-O-Y): Sept'05 to Sept'10
Bank’s Business Growth (Y-O-Y): Sept’05 to Sept’10 Growth: Total Deposits (%) Growth: Total Advances (%) 45.0 45.0 30.1 35.0 28.7 40.0 30.9 31.6 29.6 30.0 25.0 22.6 35.0 27.1 22.0 25.4 25.0 30.0 25.0 20.0 9.6 20.0 15.0 15.0 10.0 10.0 5.0 5.0 0.0 0.0 Sep'05 Sep'06 Sep'07 Sep'09 Sep'10 Se'08 Sep'05 Se
Slide 13: Bank's Profitability: H1,FY06 to H1, FY11
Bank’s Profitability: H1,FY06 to H1, FY11 3500.00 Rs crore 3184.61 •During the last five years, the Bank’s 3000.00 Half-yearly Net Profit has grown at the CAGR of 35.2% 2500.00 2041.53 2000.00 1878.46 1585.81 1500.00 1319.56 1281.70 1002.15 1066.67 1000.00 766.14 658.03 416.01 451.68 500.00 0.00 H1-
Slide 14: Bank's Asset Quality: Sept'04 to Sept'10
Bank’s Asset Quality: Sept’04 to Sept’10 % 9 4 % 8 3.5 7 6.34 3 6 2.5 Gross NPA 5 2.27 2 3.44 4 1.5 2.33 3 1.13 1.62 1 2 1.30 1.39 0.77 0.5 1 Net NPA 0.55 0.38 0.43 0.27 0 0 Sep'04 Sep'05 Sep'06 Sep'07 Sep'08 Sep'09 Sep'10
Slide 15: Bank's Business Performance: Sep'09 to Sep'10
Bank’s Business Performance: Sep’09 to Sep’10 Change Particular Y-O-Y Over Sep’09 Mar’10 Sep’10 (Rs crore) (%) March (%) Global Business 3,56,274 4,16,080 4,62,619 29.9 11.2 Domestic Business 2,70,250 3,16,926 3,47,733 28.7 9.7 Overseas Business 86,025 99,153 1,14,885 33.6 15.9 Global Deposits 20735
Slide 16: Bank's Business Performance: Sep'09 to Sep'10
Bank’s Business Performance: Sep’09 to Sep’10 Change Particular Y-O-Y Over Sep’09 Mar’10 Sep’10 (Rs crore) (%) March (%) Global advances 1,48,919 1,75,035 1,92,959 29.6 10.2 (Net) Domestic Advances 1,09,641 1,31,644 1,41,732 29.3 7.7 Overseas Advances 39,278 43,392 51,227 30.4 18.1 Out of Gross Dome
Slide 17: Bank's Business Performance: Sep'09 to Sep'10
Bank’s Business Performance: Sep’09 to Sep’10 Change Particular Y-O-Y Over Sep’09 Mar’10 Sep’10 (Rs crore) (%) March (%) Global Saving 46,988 52,544 59,349 26.3 13.0 Deposits Domestic Savings 45,749 51,258 57,994 26.8 13.1 Deposits Overseas Savings 1,239 1,286 1,355 9.3 5.4 Deposits Global Current 1
Slide 18: Bank's Profits & NII: Jul-Sep, FY10 & FY11
Bank’s Profits & NII: Jul-Sep, FY10 & FY11 Particular Y-O-Y Jul-Sep’09 Jul-Sep’10 (Rs crore) (%) Gross Profit 1,031.59 1,656.74 60.6 Net Profit 634.18 1,019.30 60.7 Net Interest 1,388.60 2,038.14 46.8 Income •The Bank’s NII grew sequentially from Rs 1,744.95 crore in Jan-Mar’10 to Rs 1,857.99 crore
Slide 19: Other Highlights: For Last Select Quarters
Other Highlights: For Last Select Quarters Particular (in %) Q2, Q4, Q1, Q2, FY10 FY10 FY11 FY11 Global Cost of Deposits 5.15 4.42 4.39 4.50 Domestic Cost of 5.87 5.08 5.09 5.27 Deposits Overseas Cost of 2.49 2.06 1.95 2.02 Deposits Global Yield on Advances 8.71 8.23 8.17 8.40 Domestic Yield on 10.2
Slide 20: Other Highlights: For Last Select Quarters
Other Highlights: For Last Select Quarters Particular (in %) Q2, Q4, Q1, Q2, FY10 FY10 FY11 FY11 Global Yield on Investment 6.69 6.51 6.66 7.06 Domestic Yield on 6.87 6.72 6.83 7.24 Investment Overseas Yield on 4.33 3.68 3.71 3.71 Investment Global NIM 2.63 2.97 2.90 3.02 Domestic NIM 2.89 3.50 3.43
Slide 21: Key Financial Ratios: H1, FY10 and H1, FY11
Key Financial Ratios : H1, FY10 and H1,FY11 Return on Average Assets at 1.27% [1.13% in H1, FY10] Earning per Share (annualised) at Rs 103.14 [Rs 72.46 in H1, FY10] Book Value per Share at Rs 430.15 [Rs 348.70 in H1, FY10] Return on Equity (ROE) at 23.98% [20.78% in H1, FY10] Capital Adequ
Slide 22: Key Financial Ratios: Q2, FY10 and Q2, FY11
Key Financial Ratios : Q2, FY10 and Q2,FY11 Return on Average Assets at 1.34% [ 1.07% in Q2, FY10] Earning per Share (annualised) at Rs 111.92 [Rs 69.64 in Q2, FY10] Return on Equity (ROE) at 26.02% [ 19.97% in Q2, FY10] Cost-Income Ratio declined from 48.00% in Q2, FY10 to 39.08% in Q2, FY1
Slide 23: Non-Interest Income: Q2, FY10 and Q2, FY11
Non-Interest Income: Q2, FY10 and Q2, FY11 % Q2, Change (Rs crore) Q2, FY10 FY11 (Y-O-Y) Commission, Exchange, 192.05 248.28 29.3 Brokerage Incidental Charges 78.22 90.50 15.7 Other Miscellaneous 53.67 63.20 17.8 Income Total Fee-Based 323.94 401.98 24.1 Income Trading Gains 120.54 110.13 -8.6 Profi
Slide 24: Provisions & Contingencies: Q2, FY10 and Q2, FY11
Provisions & Contingencies: Q2, FY10 and Q2, FY11 (Rs crore) Q2, Q2, % FY10 FY11 Change (Y-O-Y) Provision for NPA & Bad 172.16 142.26 -17.4 Debts Written-off Provision for Depreciation on -61.07 -20.11 -- Investment Provision for Standard 1.49 52.04 3392.6 Advances Other Provisions (including Provis
Slide 25: Bank's Treasury Highlights: Q2 and H1, FY11
Bank’s Treasury Highlights: Q2 and H1, FY11 • Treasury Income stood at the healthy level of Rs 210.15 crore in Q2, FY11 and at Rs 459.70 crore in H1, FY11. • The Bank’s Trading Gains Stood at Rs 110.13 crore in Q2, FY11 and at Rs 238.07 crore in H1, FY11. • As of September 30, 2010, the share of SLR
Slide 26: Overseas Business: H1, FY11
Overseas Business: H1, FY11 • As on 30 Sept, 2010, the “Overseas Business” contributed 24.8% to the Bank’s Total Business, 16.9% to its Gross Profit and 31.6% to its Core Fee income. • While the Cost-Income Ratio for Domestic Operations stood at 41.51% in H1, FY11, it was more favourable at 19.74% f
Slide 27: Capital Adequacy & Capital Raising in H1, FY11
Capital Adequacy & Capital Raising in H1, FY11 • The Bank’s CRAR (Basel II) as on 30th Sept., 2010 was at 13.22%; of which Tier1 was at 8.16% and Tier 2 at 5.07%. • The size of Bank’s risk-weighted assets as on 30 th September, 2010 was Rs 1,85,282 crore. • The Bank proposes to maintain its CRAR in
Slide 28: NPA Movement (Gross): H1, FY11
NPA Movement (Gross): H1, FY11 Particular ( Rs crore) A. Opening Balance 2,400.69 B. Additions during H1, FY11 954.31 Out of which, Fresh 919.63 Slippages C. Reduction during H1, 635.15 FY11 Recovery 242.45 Upgradation 144.67 PWO & WO 248.03 Exchange Difference -- NPA as on 30th September, 2,719.85
Slide 29: Sector-wise Gross NPAs: H1, FY10 & FY11
Sector-wise Gross NPAs: H1, FY10 & FY11 Sector Gross NPA Gross NPA (%) (%) H1, FY10 H1, FY11 Agriculture 2.09 3.44 Large & Medium 1.21 1.56 Industries Retail 2.38 2.12 Housing 2.67 2.13 SME 1.70 2.94
Slide 30: Cumulative Position of Restructured Assets (Domestic)
Cumulative Position of Restructured Assets (Domestic) • During 30 months (1 Apr’08 to 30 Sep’10), the Bank has restructured accounts amounting Rs 5,432.66 crore. • Within this, the loans worth Rs 319.04 crore were restructured in H1, FY11. • For the period of 30 months, out of the total amount restr
Slide 31: Sectoral Deployment of Credit at end-Sept, 2010
Sectoral Deployment of Credit at end-Sept, 2010 Sector % share in Gross Domestic Credit Agriculture 15.0 Retail 18.9 SME 16.3 Wholesale 36.3 Miscellaneous 13.5 Total 100.0%
Slide 32: Economic Outlook
Economic Outlook • The IMF forecasts global output to increase by 4.8% in 2010 and by 4.2% in 2011 reflecting a temporary slowdown spanning the second half of this year. • It has revised upwards India’s economic growth forecast for 2010 from 9.4% to 9.7% citing strengthening local consumer demand. •
Slide 33: Bank's Guidance & Vision
Bank’s Guidance & Vision •The Bank would continue with its thrust on sustainable & qualitative growth -- •Would maintain its growth above the industry average to steadily expand the market share. From Sep’07 to Sep’10, the Bank’s market share in Deposits has gone up from 3.62% to 3.65% and in Advanc
Slide 34: Bank's BPR Project - Navnirmaan
Bank’s BPR Project - Navnirmaan •Roadmap of the Project Navnirmaan •Design : 4 Months •Pilot & Execution: 5 to 12 months •Roll-Out: 2 to 3 years •Project Navnirmaan has already entered the Implementation stage •There are in all 18 activities underway focusing on superior customer experience, custome
Slide 35: Bank's HR Initiatives
Bank’s HR Initiatives •Recruitment during FY11 •Probationary Officers – 1,200 •Specialist Officers (in various specialised disciplines) – 345 •Clerks – 2,000 (in progress) •Campus Recruitment – 616 •(Bank visited nearly 75 institutes including some of the premier Business schools of the country) •To
Slide 36: Thank you.
B Thank you.