bob media apr dec fy09 29 jan 2009

8/8/2019 BOB Media Apr Dec FY09 29 Jan 2009

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Presentation to MediaPresentation to MediaPerformance HighlightsPerformance Highlights

( Q3 & Apr( Q3 & Apr--Dec, 2008Dec, 2008--09)09)

bybyDr Rupa Rege NitsureDr Rupa Rege Nitsure

Chief EconomistChief Economist

January 29, 2009January 29, 2009


2/23

Bank of Baroda: Key StrengthsBank of Baroda: Key Strengths

BoB is a leading 100 years old PSB in India with modern and contemporary

personality, offering banking products and services to industrial and commercial,retail and agricultural customers across the country.

Steady Movement towardsInternational best practices Preparing financials under

US GAAP

Uninterrupted Recordin Profit-making andDividend Payment

Overseas BusinessOperations extend across

25 countriesthrough 74 branches/ Offices

First PSB to receive

Corporate GovernanceRating (CAGR-2)

Rapid & SignificantTechnology Progression

Since FY06

Pioneer in manyCustomer-Centric

Initiatives

Strong DomesticPresence through

2,899 branches

Modern & Contemporary

Personality

Provides FinancialServices to around

36.3 million customersglobally

A well-accepted &recognised Brand in

Indian banking industry


3/23

Domestic Branch Network at EndDomestic Branch Network at End--Dec, 2008Dec, 2008

2

0 8

2 8 2

2 8

2600

2650

2700

2750

2800

2850

2900

Dec'06 Dec'07 Dec'08

No. of Branches

Regional Break-up of

Domestic Branches

Metro Urban Semi-Urban

Rural

631 528 645 1,0 5

The Bank has a network of

2,899 domestic branches &it merged seven branches in

Apr-Dec, FY09.

About 60.0% of the

domestic branches are in

rural/semi-urban areas

areas.

Of the total no of 2,899

branches, 350 are

Agriculture Thrust

branches.

Around 672 branches are

located in minority

concentrated districts.

There are 126 specialised

branches (including 19

service branches) & five

Gen-Next branches as on

date.


4/23

Robust Technology PlatformRobust Technology Platform

By 31 Dec, 2008, the Bank has completed CBS Rollout in 1,923domestic branches including 31 extension counters.

All CBS branches are enabled for inter bank remittancesthrough RTGS and NEFT.

CBS has also been implemented in 66 overseas branches of

Bank/its Subsidiaries.

The Banks ATM network has increased to 1,175 from a mere 170in 2005.

The Bank has installed 48 ATMs at Railway Stations.

Many novel products like RapidFunds2India, Baroda Connect,Online Tax Payment Facility, Depository Facility, Baroda EasyPay, Online Payment of Railway Ticket Booking, etc. have beendeveloped by the Bank to enhance customer convenience.


5/23

Concentration (%): Domestic Branch NetworkConcentration (%): Domestic Branch Network

Rest of India, 21.34

UP & Uttaranchal,

21.91

South, 10.56Rajasthan, 11.99

Maharashtra, 11.18

Gujarat, 23.02


6/23

Pattern of Shareholding: 31Pattern of Shareholding: 31stst Dec, 2008Dec, 2008

ovt. of

ndia

3.8 anks

0.3 utual

Funds

11.

orp.

odies

1.8

F

s

18.0

ndian

Public

.

nsurance

os

8.0

thers

0.1

is a Part of the following ndexes

SE 100, SE 200 and SE 00

Nifty Junior and ankex.

s Share is listed on SE and NSE inFuture and ptions segment also.

As on 31st Dec, 2008

Share Capital Rs 365.53 crore

No. of Shares 364.27 million

Net worth Rs 11,011.17 crore

B. V. per share Rs 302.28

Return on Equity (annualised): 17.85%


7/23

Business Growth: Dec04 to Dec08Business Growth: Dec04 to Dec08

13.72

9.02

31.03

21.91 23.17

0 00

00

0 00

00

0 00

00

0 00

00

Dec'04 Dec'0

Dec'0

Dec'0

Dec'08

Growth: Total Deposits (%)

18.56

33.78

46.82

22.99

33.17

0

10

20

30

40

50

Dec'04 Dec'05 Dec'06 Dec'07 Dec'08

Growth: Total Advances (%)

15.30

17.31

37.06

22.35

27.28

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

D ec'04 D ec'05 D ec'06 D ec'07 D ec'08

Growth: Total Business (%)

38.23

4240.44

37.28

36.1

32

34

36

38

40

42

Dec'04 Dec'05 Dec'06 Dec'07 Dec'08

Domestic CASA Share (%)


8/23

Profits: AprProfits: Apr--Dec03 to AprDec03 to Apr--Dec08Dec08

3000

8 3

8 3

0

0

1474.51

1159.08

780.80

618.20

575.80

810.99

0 ! 00

"

00 ! 00

#

000 ! 00

#"

00 ! 00

$

000!

00

$ "

00 ! 00

3000 ! 00

3"

00 ! 00

Dec'03 Dec'04 Dec'05 Dec'06 Dec'07 Dec'08

Rs crore

Gross Profit Net Profit

Bet Dec0 & Dec08, Banks Gross Profit has

grown at the CAGR of 8 %


9/23

Asset Quality: Dec03 to Dec08Asset Quality: Dec03 to Dec08

8 3

3 0

0

3

00 0 0 % 3 &

0 % 0 0

'

% 0 0

(

% 0 0

) %0 0

8 % 0 0

0

0 % 0 0

0 '

% 0 0

D

ec03

D

ec0

D

ec0

D

ec0

D

ec0

D

ec08

Gross NPAs (%)

Net NPAs (%)


10/23

Performance HighlightsPerformance Highlights

Banks Achievements against the Guidance for FY09

(1) Business Growth with a Thrust on Asset Quality

Bank has expanded its loan-book at 33.2% (y-o-y) & yetmanaged to reduce its Gross NPA from Rs 2,040.30 crore at end-Dec07 to Rs 1,981.38 crore at end-Mar08 to Rs 1,921.42 crore at

end-Dec08 despite challenging economic conditions.Bank has added 6.3 million new customers to its books in Apr-Dec, FY09.

(2) Bank to exercise control over Cost of Deposits byfocusing on CASA and by reducing dependence on BulkDeposits

Banks Domestic CASA share sequentially improved from35.85% at end-Sept08 to 36.10% at end-Dec08 despite higherinterest rates on term deposits available in the system.


11/23

Performance HighlightsPerformance Highlights

Banks Achievements against the Guidance for FY09

Banks Core Deposits excluding Bulk Deposits increased at thepace of 17.9% in Apr-Dec, FY09 versus 12.3% in Apr-Dec, FY08.

(3) Focus on High-yielding Advances

While Avg Yield on Domestic Advances & Global Advances

stood at 10.53% & 9.58% respectively in Q3, FY08, it improved to11.25% & 9.91% respectively in Q3, FY09.

(4) Thrust on Improving the NIM

Banks Global NIM (% of interest-earning assets) improved to

3.30% & Domestic NIM to 3.61% in Q3, FY09 from 3.00% & 3.20%respectively in Q3, FY08.

(5) Special Emphasis on Fee-based Income

Banks Core Fee-Based Income expanded at the pace of 25.8%(y-o-y) in Q3, FY09 despite volatile financial markets.


12/23

Thrust on Averages Rather Than Terminal Nos.Thrust on Averages Rather Than Terminal Nos.

Parameter

Apr-Dec07

(Rs Cr)

Apr-Dec08

(Rs cr)

Apr-Dec07

(% Y-o-Y)

Apr-Dec08

(% Y-o-Y)

CurrentDeposit

6,805 7,826 9.76% 15.00%

SavingsDeposit

30,970 36,389 11.78% 17.50%

TimeDeposit

63,807 82,418 28.54% 29.17%

TotalDeposit

1,01,582 1,26,632 21.59% 24.66%

Advances 66,396 86,389 22.20% 30.11%

Business 1,67,978 2,13,022 21.83% 26.82%

Figures pertain to domestic business based on weekly averages.


13/23

Business Performance: Dec07 to Dec08Business Performance: Dec07 to Dec08

Global Business up 27.3%(Y-o-Y) to Rs 2,95,815.20 crore at end-Dec, 2008

Domestic Business up 25.5%(Y-o-Y) to Rs 2,34,579.17 crore

Overseas Business up 34.8%(Y-o-Y) to Rs 61,236.03 crore

Global Deposits up 23.2%(Y-o-Y) to Rs 1,68,616.06 croreDomestic Deposits up 21.5%(Y-o-Y) to Rs 1,36,515.77 crore

Overseas Deposits up 30.8%(Y-o-Y) to Rs 32,100.29 crore

Domestic CASA share 36.10% at end-Dec08

Global Advances up 33.17% (Y-o-Y) to Rs 1,27,199.14 crore

Domestic Advances up 31.4% to Rs 98,063.40 crore

Overseas Advances up 39.4% to Rs 29,135.74 crore


14/23

Business Performance: Dec07 to Dec08Business Performance: Dec07 to Dec08

Retail Credit up 22..1%(Y-o-Y) to Rs 18,804.62 crore at end-Dec2008

Retail Credit now forms 19.03% of Gross Domestic Credit

Home Loan Book up 18.3%(Y-o-Y) to Rs 7,937.02 crore

SME Credit up 27.8% (Y-o-Y) to Rs 13,710 crore

Farm Credit up 25.8% (Y-o-Y) to Rs 15,620.56 crore

Priority Sector Credit up 23.7%(Y-o-Y) to Rs 39,648.51 crore

Banks credit to weaker sections was up 42.1% (Y-o-Y) to Rs7,354.96 crore.

Banks micro-credit to SHGs was up 45.0% (Y-o-Y) to Rs 549crore.


15/23

Key Financial Ratios : AprKey Financial Ratios : Apr--Dec, 2008Dec, 2008--0909

Return on Average Assets (ROAA) at 1.04% [0.89% at end-Mar, 2008]

Earning per Share (annualised) at Rs 53.97 [Rs 39.41 in FY08]

Book Value per Share at Rs 302.28 [Rs 261.54 in FY08]

Return on Equity (ROE) at 17.85% [15.07% in FY08]

Capital Adequacy Ratio( Basel II) at 13.20%

Cost-Income Ratio declined from 49.45% to 46.00%(Y-o-Y).

Gross NPA ratio declined to 1.50% from 2.11% (Y-o-Y).

Net NPA ratio declined to 0.37% from 0.54%(Y-o-Y).

NPA Coverage improved to 75.40% on prudent provisioning


16/23

Operating Profits: AprOperating Profits: Apr--Dec08 & Q3, FY09Dec08 & Q3, FY09

2214.10

3000.52

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

Rs Crore

Apr-Dec'07 Apr-Dec'08

35.5%

932.40

1414.71

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

1600.00

Rs Crore

Q3,FY08 Q3, FY09

51.7%

NII grew at 26.7% (Y-o-Y) in Apr-Dec, FY09 & at 46.6% (Y-o-Y) inQ3, FY09.


17/23

Net Profits: AprNet Profits: Apr--Dec08 & Q3, FY09Dec08 & Q3, FY09

1159.08

1474.51

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

1600.00

Rs

Apr-Dec'07 Apr-Dec'08

27.2%

501.05

708.37

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

Rs Crore

Q3,FY08 Q3, FY09

41.4%


18/23

Other Highlights: AprOther Highlights: Apr--Dec, FY09Dec, FY09

Net Interest Margin (as % of interest-bearing assets) in Global Operations

stood at 2.94% in Apr-Dec, FY09 and 3.30% in Q3, FY09.

Cost of Deposits in Global Operations increased from 5.60% to 5.73%

Cost of Deposits in Domestic Operations increased from 5.77% to 6.25%

Cost of Deposits in Overseas Operations decreased from 4.84% to 3.52%

Yield on Advances in Global Operations declined from 9.61% to 9.58%

Yield on Advances in Domestic Operations improved from 10.51% to11.25%

Yield on Advances in Overseas Operations declined sharply from 6.31%

to 5.58%.

Yield on Investments in Global Operations improved from 6.91% to 7.18%.

Yield on Investments in Domestic Operations improved from 6.95% to7.30% & in Overseas Operations declined from 6.53% to 5.88%


19/23

Other Highlights: AprOther Highlights: Apr--Dec, FY09Dec, FY09

Treasury Income (Profit on Sale of Investments) increasedby 32.9% (Y-o-Y) to Rs 599.29 crore.

Fee-based Income (Commission, Exchange, Brokerage &Incidental Charges) improved by a strong 34.5% (Y-o-Y)

to Rs 747.81 crore.

Cash Recovery (NPA & PWO) during Apr-Dec, FY09stood at healthy Rs 633.21 crore despite visible signs ofindustrial slowdown.

Profit from Exchange Transactions grew by a robust48.6% (Y-o-Y) to Rs 286.01 crore.


20/23

Overseas Business: AprOverseas Business: Apr--Dec, FY09Dec, FY09

In Apr-Dec, FY09, the Overseas Business contributed 20.70% to

Total Business and 16.92% to Net Profit.

In Apr-Dec, FY09, the Overseas Business contributed 34.79% tothe Banks income from commission/exchange/brokerage.

While the Cost-Income Ratio for Domestic Operations stood at50.42% in Apr-Dec, FY09, it was just 20.35% for OverseasOperations.

While the Gross NPA (%) in Domestic Operations stood at 1.78%

at end-Dec 2008, that for Overseas Operations was just 0.55%.

Whereas the Gross Profit to Avg. Working Funds ratio forOverseas Operations was 2.22% in Apr-Dec, FY09, it was 2.08%for Domestic Operations.


21/23

Banking ScenarioBanking Scenario

Economic slowdown has deepened considerably with IIP growth

slipping to 3.9% in Apr-Nov, 2008 from 9.20% in Apr-Nov, 2007

The RBI has revised its GDP growth forecast downwards inMonetary Policy Review (Jan 27) to 7.0% (with a downward bias)from 7.58.0%

Inflation, however, has eased considerably & expected in the band

of 2.5% to 3.0% by end of FY09.

Interest Rates have developed a south-ward bias , but adjustmentsof lending rates will be gradual as cost of funds still on the higherside and downside risks to growth remain significant

Banks credit growth estimated at 24% & deposit growth at 19.0%for FY09.

RBIs steps since Oct, 2008 have released liquidity worth of Rs3,66,000 crore so far in the banking system.


22/23

Banks Guidance for FY09Banks Guidance for FY09

To continue with our thrust on Growth with Quality by

focusing on CASA, by further reducing the dependence onBulk Business & by protecting the Asset Quality with a firmcontrol on the process of Credit Origination

To achieve the Business Growth of 25.0% in FY09 and FY10.

To protect the ROAA above 1.0% and ROE above 17.0%(already achieved in Apr-Dec, FY09) for FY09 & later

To bring down the Cost-Income Ratio to 45.0%

To maintain the growth of at least 25.0%-plus in core Fee-

Based Income in FY09 and improve it further for the comingyears

To continue with our efforts to bring down Gross & NetNPA further despite challenging times ahead


23/23

Thank you.

bob media apr dec fy09 29 jan 2009

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