Bank of Baroda · NSE:BANKBARODA
Bank of Baroda — Q1 FY2011 Earnings Presentation
31 slides from Bank of Baroda's earnings presentation, Jul 29, 2010
Slide 1: Bank of Baroda: From Stability to Sustainability (Q1, 2010-11)
Bank of Baroda From Stability to Sustainability ( Q1, 2010-11) Dr Rupa Rege Nitsure Chief Economist July 29, 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 3200 3106 domestic branches as on 3100 30th June, 2010 was 3,106 & 2927 3000 no. of ATMs were 1,372 . 2851 2900 •During Q1, FY10, Bank 2735 2800 2703 opened seven new branches and merged one 2700 existing branch. 2600 •Around 36.35%
Slide 4: Robust Technology Platform
Robust Technology Platform •As on 30 June 2010, all domestic branches, that is 3,106 branches & 26 extension were on CBS. •Additionally, 43 branches in 12 overseas territories & 28 branches in eight overseas subsidiaries are on CBS covering 94.0% of total overseas business. During Q1, FY11, the CBS
Slide 5: Concentration (%): Domestic Branch Network
Concentration (%): Domestic Branch Network Rest of India, 21.45 Gujarat, 22.47 Maharashtra, 11.30 UP & Uttaranchal, 21.99 Rajasthan, 11.82 South, 10.97
Slide 6: Pattern of Shareholding: 30th June, 2010
Pattern of Shareholding: 30th June, 2010 As on 30th June, 2010 Indian Corp. Public Bodies •Share Capital Rs 365.53 4.9% Others 5.9% crore 0.2% •No. of Shares 364.27 FIIs million 17.8% • Net worth Rs 14,646.26 crore • B. V. per share Rs 402.08 •Return onaEquity • BOB is (annualised): Part of the foll
Slide 7: Comparative Performance of BoB Stock: Jun'09 to Jun'10
Comparative Performance of BoB Stock: Jun’09 to Jun’10 Value Value Index/Stock (30th (30th % Change Jun’09) Jun’10) Sensex 14,493.84 17,700.90 22.1% Nifty 4,219.10 5,312.50 25.9% Bankex 8,211.48 10,765.03 31.1% BankNifty 7,338.85 9,464.60 29.0% BoB-BSE 445.30 701.95 57.6% BoB-NSE 445.45 701.85 57.6%
Slide 8: Indian Macro Scene during Jun'09 to Jun'10
Indian Macro Scene during Jun’09 to Jun’10 IIP Growth (%) WPI (%) 20 17.7 11.23 10.16 16.5 12 18 9.89 15.1 16 10 8.56 14 16.3 7.31 10.6 10.2 8 9.90 10.55 12 13.9 10 8.3 5.55 12 8 11.5 6 9.3 6 7.2 4 1.46 4 2 2 -1.01 0.46 0 0 Jun'09 Aug'09 Apr'10 Jun'10 Feb'10 Oct'09 Dec'09 -2 -0.67 -0.17 Bank Credit
Slide 9: Economic Environment & Policy Developments in Q1, FY11
Economic Environment & Policy Developments in Q1, FY11 •Global economy grew by over 5.0% in Q1, FY11 but has developed some downside risks after that due to sovereign debt concerns in the euro area. •Good progress of monsoon so far implies better prospects for agriculture growth in FY11; industrial
Slide 10: Bank's Business Growth (Y-O-Y): Jun'06 to Jun'10
Bank’s Business Growth (Y-O-Y): Jun’06 to Jun’10 Growth: Total Deposits (%) Growth: Total Advances (%) 42.1 27.0 45.0 37.5 30.0 25.2 24.7 40.0 30.7 25.0 35.0 27.7 19.3 27.5 30.0 20.0 13.7 25.0 15.0 20.0 15.0 10.0 10.0 5.0 5.0 0.0 0.0 Jun'06 Jun'07 Jun'08 Jun'09 Jun'10 Jun'06 Jun'07 Jun'08 Jun'09 Jun
Slide 11: Bank's Profitability: Jun'06 to Jun'10
Bank’s Profitability: Jun’06 to Jun’10 1800.00 Rs crore Bank’s Net Profit has grown by a 1600.00 healthy 1527.87 CAGR of 51.4% between Jun’06 & 1400.00 Jun’10 1200.00 1009.93 1000.00 859.16 800.19 800.00 685.38 644.45 600.00 503.53 370.86 400.00 330.83 163.33 200.00 0.00 Jun'06 Jun'07 Jun'08 Jun'09
Slide 12: Bank's Asset Quality: Jun'04 to Jun'10
Bank’s Asset Quality: Jun’04 to Jun’10 % 9 4 % 8 3.5 7.21 7 3 6 2.94 Gross NPA 2.5 5 4.06 2 4 2.78 1.5 1.47 3 1.86 1 2 0.92 1.44 1.41 Net NPA 0.67 1.03 0.5 1 0.39 0.27 0 0 Jun'04 Jun'05 Jun'06 Jun'07 Jun'08 Jun'09 Jun'10
Slide 13: Bank's Business Performance: Jun'09 to Jun'10
Bank’s Business Performance: Jun’09 to Jun’10 Change Particular Y-O-Y Over Jun’09 Mar’10 Jun’10 (Rs crore) (%) March (%) Global Business 3,40,616 4,16,080 4,40,262 29.3% 5.8% Domestic Business 2,60,332 3,16,926 3,31,878 27.5% 4.7% Overseas Business 80,284 99,153 1,08,384 35.0% 9.3% Global Deposits 1
Slide 14: Bank's Business Performance: Jun'09 to Jun'10
Bank’s Business Performance: Jun’09 to Jun’10 Change Particular Y-O-Y Over Jun’09 Mar’10 Jun’10 (Rs crore) (%) March (%) Global advances 1,42,007 1,75,035 1,85,595 30.7% 6.0% (Net) Domestic Advances 1,05,897 1,31,644 1,35,712 28.2% 3.1% Overseas Advances 36,109 43,392 49,882 38.1% 15.0% Out of Gross
Slide 15: Bank's Business Performance: Jun'09 to Jun'10
Bank’s Business Performance: Jun’09 to Jun’10 Change Particular Y-O-Y Over Jun’09 Mar’10 Jun’10 (Rs crore) (%) March (%) Global Saving 44,237 52,544 56,061 26.7% 6.7% Deposits Domestic Savings 43,103 51,258 54,769 27.1% 6.8% Deposits Overseas Savings 1,134 1,286 1,292 13.9% 0.5% Deposits Global Curr
Slide 16: Bank's Profits & NII: Apr-June, FY10 & FY11
Bank’s Profits & NII: Apr-June, FY10 & FY11 Particul ar Apr- Apr- Y-O-Y (Rs Jun’09 Jun’10 (%) crore) Gross 1,009.9 1,527.8 51.3% Profit 3 7 Net Profit 685.38 859.16 25.4% Net 1,204.7 1,857.9 Interest 54.2% 0 9 Income •The Bank’s NII grew even sequentially from Rs 1744.95 crore in Jan-Mar’10 to Rs 18
Slide 17: Other Highlights: Apr-June, FY10 & FY11
Other Highlights: Apr-June, FY10 & FY11 Particular (in %) Apr-Jun’09 Jan- Apr- Mar’10 Jun’10 Global Cost of Deposits 5.41 4.42 4.39 Domestic Cost of Deposits 6.16 5.08 5.09 Overseas Cost of Deposits 2.65 2.06 1.95 Global Yield on Advances 8.72 8.23 8.17 Domestic Yield on Advances 10.10 9.76 9.79 Ove
Slide 18: Other Highlights: Apr-June, FY10 & FY11
Other Highlights: Apr-June, FY10 & FY11 Particular (in %) Apr-Jun’09 Jan- Apr- Mar’10 Jun’10 Global Yield on Investment 6.83 6.51 6.66 Domestic Yield on 7.07 6.72 6.83 Investment Overseas Yield on 3.87 3.68 3.71 Investment Global NIM 2.37 2.97 2.90 Domestic NIM 2.57 3.50 3.43 Overseas NIM 1.48 1.30
Slide 19: Key Financial Ratios: Apr-June, FY10 & FY11
Key Financial Ratios : Apr-June, FY10 & FY11 Return on Average Assets at 1.19% [1.19% in Q1, FY10] Earning per Share (annualised) at Rs 94.36 [Rs 75.28 in Q1, FY10] Book Value per Share at Rs 402.08 [Rs 331.26 in Q1, FY10] Return on Equity (ROE) at 23.46% [22.72% in Q1, FY10] Capital Adequ
Slide 20: Non-Interest Income: Apr-June, FY10 & FY11
Non-Interest Income: Apr-June, FY10 & FY11 % (Rs crore) Q1, FY10 Q1, FY11 Change (Y-O-Y) Commission, Exchange, 200.98 201.54 0.3% Brokerage Incidental Charges 63.94 77.14 20.6% Other Miscellaneous Income 35.28 32.89 -6.8% Total Fee-Based Income 300.20 311.57 3.8% Trading Gains 256.58 127.94 -50.1% P
Slide 21: Provisions & Contingencies: Apr-June, FY10 & FY11
Provisions & Contingencies: Apr-June, FY10 & FY11 (Rs crore) Q1, FY10 Q1, FY11 % Change (Y-O-Y) Provision for NPA & Bad 308.51 277.54 -10.0% Debts Written-off Provision for Depreciation -359.80 -58.91 -83.6% on Investment Provision for Standard 8.58 28.81 235.8% Advances Other Provisions (including
Slide 22: Bank's Treasury Highlights: Q1, FY11
Bank’s Treasury Highlights: Q1, FY11 • Treasury Income stood at the healthy level of Rs 249.55 crore in Q1, FY11 despite heightened volatility in the G-sec market. • The Bank’s Trading Gains Stood at Rs 127.94 crore; of which Rs 57 crore came from the domestic equity portfolio. • As of June 30, 2010
Slide 23: Overseas Business: Apr-June, FY11
Overseas Business: Apr-June, FY11 • In Q1, FY11, the “Overseas Business” contributed 24.6% to the Bank’s Total Business, 16.4% to its Gross Profit and 26.7% to its Fee-based income. • While the Cost-Income Ratio for Domestic Operations stood at 41.03% in Q1, FY11, it was just 19.06% for the Bank’s O
Slide 24: Capital Adequacy & Capital Raising in Q1, FY11
Capital Adequacy & Capital Raising in Q1, FY11 • The Bank’s CRAR as on 30th June, 2009 stood at 13.25%; of which Tier1 was at 8.16% and Tier 2 at 5.09%. • The size of Bank’s risk-weighted assets as on 30 th June, 2010 was Rs 1,76,705 crore. • The Bank proposes to maintain its CRAR in the band of 13.
Slide 25: NPA Movement (Gross): Q1, FY11
NPA Movement (Gross): Q1, FY11 Particular ( Rs crore) A. Opening Balance 2,400.69 B. Additions during Q1, FY11 666.21 Out of which, Fresh Slippages 639.21 C. Reduction during Q1, FY11 Recovery 143.32 Upgradation 109.56 PWO & WO 156.60 Exchange Difference -- NPA as on 30th June, 2010 2,657.42 Recover
Slide 26: Sector-wise Gross NPAs: Q1, FY10 & FY11
Sector-wise Gross NPAs: Q1, FY10 & FY11 Sector Gross NPA Gross NPA (%) (%) Q1, FY10 Q1, FY11 Agriculture 2.15% 3.43% Large & Medium 1.05% 1.69% Industries Retail 2.65% 2.41% Housing 2.99% 2.41% SME 2.47% 2.91%
Slide 27: Cumulative Position of Restructured Assets
Cumulative Position of Restructured Assets • During 27 months (1 Apr’08 to 30 June’10), the Bank has restructured 63,454 accounts amounting Rs 5,283.41 crore. • Within this, the loans worth Rs 169.79 were restructured in Q1, FY11. • For the period of 27 months, out of the total amount restructured,
Slide 28: Sectoral Deployment of Credit in Q1, FY11
Sectoral Deployment of Credit in Q1, FY11 Sector % share in Gross Domestic Credit Agriculture 15.3% Retail 18.1% SME 15.7% Trading plus Other PS 15.2% Wholesale 35.7% Total 100.0%
Slide 29: Economic Outlook
Economic Outlook • The IMF has revised upwards its projection of global growth from 4.2% to 4.6% for 2010 on the strength of robust Q1 growth; but warned of many downside risks that may pull down the growth later. • With increasing uncertainty about the pace of global recovery, global energy & commo
Slide 30: 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 Jun’09 to Jun’10, the Bank’s market share in Deposits has gone up from 3.68% to 3.98% and in Advanc
Slide 31: Thank you.
B Thank you.