BOB Profile-Sept05

1
Bank of Baroda Banking on Consistent
Leadership Performance Analysis Q3 Apr-Dec,
2012-13 (FY13) Dr Rupa Rege Nitsure Chief
Economist February 4, 2013
2
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 in Profit-making and
Dividend Payment
Overseas Business Operations extend across 24
countries through 97 Offices
Modern Contemporary Personality
Strong Domestic Presence through 4,134 Branches
Pioneer in many Customer-Centric Initiatives
Provides Financial Services to over 49 mln
Customers Globally
First PSB to receive Corporate Governance
Rating (CGR-2)
Relatively Strong Presence in Progressive
States like Gujarat Maharashtra
Robust Technology Platform with 100 CBS in
global operations
A well-accepted recognised Brand in Indian
banking industry
3
Results at a glance
Apr-Dec, FY13 Q3, FY13
Operating Profit up 4.7 (y-o-y) to Rs 6,892 crore Operating Profit dn -13.5 (y-o-y) to Rs 2,256 crore
Net Profit dn 1.1 (y-o-y) to Rs 3,452 crore Net Profit dn 21.6 (y-o-y) to Rs 1,012 crore
Net Interest Income up 13.1 (y-o-y) to Rs 8,501 crore Net Interest Income up 7.0(y-o-y) to Rs 2,841 crore
NIM at 2.73 in Global at 3.17 in Domestic operations NIM at 2.65 in Global at 3.08 in Domestic operations
ROAA (annualized) at 0.98 ROAA (annualized) at 0.84

Total Business up 17.1 (y-o-y) to Rs 7,14,051 crore by end-Dec, 2012 Total Business up 17.1 (y-o-y) to Rs 7,14,051 crore by end-Dec, 2012
Total Advances up 14.8 (y-o-y) to Rs 2,99,318 crore by end-Dec, 2012 Total Advances up 14.8 (y-o-y) to Rs 2,99,318 crore by end-Dec, 2012
Total Deposits up 18.8 (y-o-y) to Rs 4,14,733 crore by end-Dec, 2012 Total Deposits up 18.8 (y-o-y) to Rs 4,14,733 crore by end-Dec, 2012
Net NPAs () at 1.12 as on 31st Dec, 2012 Net NPAs () at 1.12 as on 31st Dec, 2012
Provision Coverage Ratio at the healthy level of 70.88 as on 31st Dec, 2012 Provision Coverage Ratio at the healthy level of 70.88 as on 31st Dec, 2012
CRAR at 12.66 with Tier 1 at 9.33 as on 31st Dec, 2012 CRAR at 12.66 with Tier 1 at 9.33 as on 31st Dec, 2012
Cost-Income ratio at 37.35 in Apr-Dec, FY13. Cost-Income ratio at 37.35 in Apr-Dec, FY13.
4
Performance since FY08 .
2007-08 (Annual) 2008-09 (Annual) 2009-10 (Annual) 2010-11 (Annual) 2011-12 (Annual) Apr-Dec, 2012-13 (Nine-Monthly)
Assets (Rs crore) 1,83,479 2,26,672 2,78,317 3,58,397 4,47,321 4,88,563
Net Profit (Rs crore) 1,436 2,227 3,058 4,242 5,007 3,452
Tier 1 () 7.64 8.49 9.20 9.99 10.83 9.33
Return on Equity () 15.07 19.48 22.19 21.48 19.04 15.26
Cost-Income Ratio () 50.89 45.38 43.57 39.87 37.55 37.35
NPL (Net, ) 0.47 0.31 0.34 0.35 0.54 1.12

• In four yrs nine months, Banks assets have
  grown 2.66 times.
• Banks nine-monthly net profit in Apr-Dec, FY13
  is bigger than its full years profit in FY10.

5
Impressive CAGR for key parameters
(FY08 thru FY12)
Parameter CAGR (FY08 thruFY12)
Assets 24.96
Gross Profit 31.02
Net Profit 36.65
Net Worth 28.90
Total Capital 26.84
Tier-1 Capital 34.13
6
Sustained expansion of global branch
network
7
Features of domestic branch network

• In a years time (Dec11 to Dec12), the Bank
  added 443 brs to its domestic network comprising
  91 in metro 49 in urban 169 in semi-urban 134
  in rural areas.
• During Apr-Dec, FY13, the Bank opened 231 new
  brs (22 in metro, 23 in urban, 81 in semi-urban
  and 105 in rural areas) and merged one rural br
  in June, 2012 converted that into a satellite
  unit.
• In the remaining part of FY13, the Bank plans to
  open 365 new brs with 196 brs in Tier-I Tier-II
  centres 169 brs in Tier-III to Tier-VI centres.
• Newly opened branches in H1, FY13 majorly belong
  to Rajasthan Eastern UP Bihar, Jharkhand
  Orissa Maharashtra Gujarat.
• Around 33.14 of the Banks network at the
  end-Dec, FY13 was situated in rural areas.
• Moreover, the Banks ATM tally improved from
  1,838 at end-Dec, 2011 to 2,288 at end-Dec, 2012.

Regional Break-up of Domestic Branches as on 31st Dec, 2012 Regional Break-up of Domestic Branches as on 31st Dec, 2012 Regional Break-up of Domestic Branches as on 31st Dec, 2012 Regional Break-up of Domestic Branches as on 31st Dec, 2012
Metro Urban Semi-Urban Rural
900 738 1,126 1,370
8
Deepening of overseas business
..
No. branches, offices, countries
9
Other strengths Robust
technology platform

• Banks entire domestic, overseas and RRB
  framework is CBS-compliant.
• All domestic branches are migrated on MPLS
  network. New branches are directly opened in MPLS
  network.
• Bank has IT facilities for online/offline account
  opening through Business Correspondents under
  Financial Inclusion.
• Banks retail corporate customers enjoy
  several facilities under its Internet Banking
  Delivery Channel such as fund transfers to self
  third party (within BoB) RTGS/NEFT, online
  payment of bills taxes, Custom duty payments,
  rail-ticket booking, temple donations, online
  subscription to IPOs/FPOs thru ASBA
  institutional fee payment etc. The SMS alerts
  RTGS/NEFT transactions are also implemented in
  the Internet Banking Portal.
• Bank has implemented Internet Banking in 13 of
  its overseas territories, notably Oman, Tanzania,
  Uganda, Kenya, Mauritius, Seychelles, Botswana,
  New Zealand, UAE, Fiji, UK ,Ghana. And Australia.
• To provide safe online banking services to its
  customers protect them from phishing attacks,
  Bank has implemented a Fraud Management Solution.
  SMS alerts facility is also provided to
  customers.
• Bank has implemented the RaidFunds2India solution
  in all its major territories.
• Banks Mobile Banking (Baroda M-Connect) provides
  various facilities to its customers like
  balance-enquiry, mini-statements, linking of
  multiple accounts, funds transfer, bill
  payments, ticket booking, shopping, feedback
  facilities, etc. IMPS facility is also launched
  for customers. Banks Mobile Banking application
  is available on all Leading Brands including
  Blackberry, Android, iPhone, Windows, etc.
• National Unified USSD Platform is also enabled
  through Mobile Banking. Account transfers through
  IMPS is also made available through Mobile
  Banking.

10
Other strengths Robust
technology platform

• Internet Payment Gateway has been implemented to
  facilitate e-commerce transactions in multi
  currencies across the globe.
• ATM switch is upgraded to handle increasing
  volume of ATM transactions the ATM Switch also
  support eight international territories.
• Bank has introduced Rupay Card, Rupay KCC Card.
  The eight Brown Label ATMs are also made live.
• Bank has introduced the facility of Multiple
  Accounts being linked to a single Debit Card
  (verified by Visa, CVV2) and also Mobile Number
  registration thru ATMs in CBS for SMS Alerts.
• E-tax payments thru ATMs are also facilitated
  and Mobile ATMs are introduced in several cities.
• Bank has set up two Contact Centres in Lucknow
  Baroda to fast address the customer queries
  grievances.
• Cash Management Solution is implemented to
  provide operational support to customers ALM.
• Anti Money Laundering (AML) has been implemented
  in India and 23 of Banks overseas territories.
• Online Trading (Corporate and Retail) has been
  implemented in India.
• Bank has implemented an Integrated Global
  Treasury Solution in its major territories like
  U.K., UAE, Bahamas, Bahrain, Hong Kong,
  Singapore, Belgium, USA and India to achieve
  reduced cost of operations better fund mgmt.
• Bank has a centralised SWIFT system for India
  its 23 overseas territories.
• CTS -Cheque Truncation System implemented in
  Delhi and Grid based CTS was implemented in
  Chennai, Coimbatore and Bangalore. CTS will be
  shortly implemented in Western Grid also.

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Other strengths Robust
technology platform

• ACPC (Automated Cheque Processing Centre) for
  centralised Inward/Outward clearing has been
  implemented in Mumbai, Surat and Ahmedabad.
• Back Office functions have been centralised in
  the Bank at City Back Offices ten Regional Back
  Offices (at Baroda, Jaipur, Lucknow, Bhopal,
  Coimbatore, Kolkata, Mumbai, Jamshedpur, New
  Delhi, Pune) to improve the delivery of services.
• Travel Card in foreign currency is introduced.
• HRNes- A centralised database of employees for
  facilitating promotion, selection exercise and
  automating HR policies with transparency is
  implemented.
• Payroll- A centralised online mechanism for
  salary payment of employees and leave maintenance
  has also been implemented.
• Online application for SME and Agriculture Loan
  enabled along-with Housing Loan, Education and
  Auto Loan. Online tracking of those applications
  has also been enabled.
• Bank has built a State-of-the-Art Data Centre
  conforming to Uptime Institute Tier-3 standard
  a Disaster Recovery Site in different seismic
  zones to ensure uninterrupted banking services
  delivery to customers.
• Various technology projects like Virtualization,
  CPU and Memory up-gradation, Backup
  consolidation, RAC implementation, bandwidth
  up-gradation of branches are undertaken to
  support increasing business requirement.
• BoB IIT an exclusive IT Training Centre has
  been set up in Gandhi-Nagar to educate the Banks
  staff in all IT related products services.

12
Other strengths Rich human
resource base .
Period No. of Employees No. of Officers Ratio of Officers to Total Employees
Q1, FY09 36,344 13,643 37.5
Q2, FY09 36,255 13,615 37.6
Q3, FY09 36,045 13,502 37.5
Q4, FY09 36,838 13,346 36.2
Q1, FY10 37,007 14,163 38.3
Q2, FY10 38,609 14,378 37.2
Q3, FY10 37,039 14,358 38.8
Q4,FY10 38,960 14,431 37.0
Q1, FY11 38,551 14,335 37.2
Q2, FY11 38,724 15,148 39.1
Q3, FY11 38,629 15,838 41.0
Q4, FY11 40,046 15,759 39.4
Q1, FY12 40,250 15,681 39.0
Q2, FY12 40,967 16,426 40.1
Q3, FY12 41,345 16,646 40.3
Q4, FY12 42175 16,953 40.2
Q1, FY13 42,136 16,991 40.3
Q2, FY13 42,815 17,316 40.4
Q3,FY13 42,585 17,214 40.4
13
Other strengths Steady
improvement in capital strength
Capital Adequacy Ratio (Basel-II) Tier-I () Tier-II ()
Q1, FY09 13.04 7.79 5.25
Q2, FY09 12.57 7.57 5.00
Q3, FY09 13.20 8.53 4.67
Q4, FY09 14.05 8.49 5.56
Q1, FY10 14.56 8.81 5.75
Q2, FY10 14.67 8.86 5.81
Q3, FY10 14.65 9.31 5.34
Q4,FY10 14.36 9.20 5.16
Q1, FY11 13.25 8.16 5.09
Q2, FY11 13.22 8.16 5.06
Q3, FY11 12.45 7.70 4.75
Q4, FY11 14.52 9.99 4.53
Q1, FY12 13.10 9.06 4.04
Q2, FY12 12.73 8.82 3.91
Q3, FY12 13.45 9.31 4.14
Q4, FY12 14.67 10.83 3.84
Q1, FY13 13.74 10.13 3.61
Q2, FY13 12.91 9.57 3.34
Q3, FY13 12.66 9.33 3.33
14
Other strengths Relatively stronger
presence in progressive states
15
Pattern of shareholding 31st Dec, 2012
As on 31st Dec, 2012

• Share Capital Rs 412.38 crore
• No. of Shares 411.12 million
• Net worth Rs 30,167 crore (up 24.8 ,
  y-o-y)
• B. V. per share Rs 733.78 (up 18.9,
  y-o-y)
• Return on Equity 15.3 in Apr-Dec, FY13

• BOB is a Part of the following Indexes
• BSE 100, BSE 200, BSE 500 Bankex
• Nifty, BankNifty, CNX 100, CNX 200, CNX 500
• BOBs Share is also listed on BSE and NSE in the
  Future and Options segment.

16
Sustained growth in financial
value
Period Net Worth Growth Rate (y-o-y)
Q1, FY09 9,907 13.05
Q2, FY09 10,304 13.44
Q3, FY09 11,011 14.84
Q4, FY09 11,387 19.52
Q1, FY10 12,067 21.80
Q2, FY10 12,703 23.28
Q3, FY10 13,533 22.90
Q4,FY10 13,785 21.06
Q1, FY11 14,646 21.37
Q2, FY11 15,669 23.35
Q3, FY11 16,741 23.70
Q4, FY11 19,751 43.28
Q1, FY12 20,785 41.92
Q2, FY12 22,440 43.21
Q3, FY12 24,169 44.37
Q4, FY12 26,303 33.18
Q1, FY13 27,889 34.20
Q2, FY13 28,880 28.70
Q3, FY13 30,167 24.80
17
Bank had consistent
performance
despite a non-supportive macro backdrop
Economic Indicator Q3, FY12 Q4, FY12 Q1, FY13 Q2, FY13 Q3, FY13
Real GDP growth () 6.1 5.3 5.5 5.3 N.A.
Agriculture () 2.8 1.7 2.9 1.2 N.A.
Industry () 0.8 0.7 0.8 1.2 N.A.
Services () 8.7 7.5 7.4 7.1 N.A.
Private Consumption Expenditure growth () (at current market prices) 15.2 13.9 12.6 12.3 N.A.
Gross Fixed Capital Formation ( to GDP) (at current market prices) 27.8 28.6 29.9 30.5 N.A.
SCB Credit growth (, Avg Basis) 17.9 16.8 17.7 16.7 16.2
SCB Deposit growth (, Avg Basis) 16.8 15.3 13.8 14.2 13.2
SCB Incremental Credit-Deposit Ratio (, end-period) 68.3 84.3 46.6 46.2 73.1
WPI-Inflation, Core Inflation () (end-period) 7.74 (7.91) 7.69 (4.96) 7.25 (4.85) 7.81 (5.56) 7.18 (4.24)
Trade Balance ( US Billion) -47.7 -51.7 -42.50 -49.3 -58.0
Rupee-USD (, end-period) 53.10 50.88 55.60 52.86 55.00
Foreign Exchange Reserves (end-period, US Billion) 296.69 294.40 289.99 294.81 296.58
18
Total business growth from
FY09..

• During the last three yrs nine months, the
  Banks total business has expanded 2.13 times.
• However, the pace of change in domestic business
  has been modest in Apr-Dec, FY13 due to the macro
  headwinds.

19
Total deposit growth from
FY09..

• During the past three yrs nine months, the
  Banks total deposits have grown 2.16 times.
• The pace of deposit mobilisation has been
  consistently well maintained avoiding any kind of
  liquidity stress.

20
Total advances growth from
FY09..

• During the past three a half years, the Banks
  total advances (net terms) too have more than
  doubled.
• However, the pace of advances growth has slowed
  down during FY13 on the back of lack-lustre
  credit demand.

21
Steady gains in market
share ..
22
Consistency in profit-making

• During the last five years, the Banks
  Nine-monthly Net Profit has grown at the decent
  CAGR of 24.4.

23
Relatively lower NPL ratios in
the industry
Period Gross NPA () Net NPA ()
Q1, FY09 1.86 0.52
Q2, FY09 1.62 0.43
Q3, FY09 1.50 0.37
Q4, FY09 1.27 0.31
Q1, FY10 1.44 0.27
Q2, FY10 1.30 0.27
Q3, FY10 1.43 0.31
Q4,FY10 1.36 0.34
Q1, FY11 1.41 0.39
Q2, FY11 1.39 0.38
Q3, FY11 1.32 0.36
Q4, FY11 1.36 0.35
Q1, FY12 1.46 0.44
Q2, FY12 1.41 0.47
Q3, FY12 1.48 0.51
Q4, FY12 1.53 0.54
Q1, FY13 1.84 0.65
Q2, FY13 1.98 0.82
Q3, FY13 2.41 1.12
24
Banks business
Dec11 to Dec12

Particular (Rs crore) Dec11 Mar12 Dec12 Y-O-Y () Change Over Mar12 ()
Global Business 6,09,867 6,72,248 7,14,051 17.1 6.2
Domestic Business 4,35,228 4,82,211 4,96,595 14.1 3.0
Overseas Business 1,74,639 1,90,038 2,17,456 24.5 14.4
Global Deposits 3,49,206 3,84,871 4,14,733 18.8 7.8
Domestic Deposits 2,54,994 2,80,135 2,95,388 15.8 5.4
Overseas Deposits 94,212 1,04,736 1,19,346 26.7 13.9
Global CASA Deposits 94,823 1,03,524 1,07,937 13.8 4.3
Domestic CASA 86,836 92,948 95,188 9.6 2.4
Overseas CASA 7,987 10,576 12,749 59.6 20.5

• Share of Domestic CASA was at 32.22 in terms of
  Aggregate Deposits and at 34.35 in terms of Core
  Deposits as on 31st December, 2012.

25
Banks business Dec11 to
Dec12
Particular (Rs crore) Dec11 Mar12 Dec12 Y-O-Y () Change Over Mar12 ()
Global advances (Net) 2,60,661 2,87,377 2,99,318 14.8 4.2
Domestic Advances 1,80,234 2,02,075 2,01,208 11.6 -0.4
Overseas Advances 80,427 85,302 98,110 22.0 15.0

Retail Credit Of which 31,047 35,668 35,392 14.0 -0.8
Home Loans 13,700 14,133 15,205 11.0 7.6
SME Credit 32,123 34,512 39,083 21.7 13.2
Farm Credit 25931 28,733 28716 10.7 -0.1
Credit to Weaker Sections 14,080 15,863 16,091 14.3 1.4

26
Banks business Dec11
to Dec12

Particular (Rs crore) Dec11 Mar12 Dec12 Y-O-Y () Change Over Mar12 ()
Global Saving Deposits 71,842 74,580 79,980 11.3 7.2
Domestic Savings Deposits 70,169 72,575 77,888 11.0 7.3
Overseas Savings Deposits 1,674 2,004 2,092 25.0 4.4
Global Current Deposits 22,981 28,944 27,958 21.7 -3.4
Domestic Current Deposits 16,667 20,372 17,300 3.8 -15.0
Overseas Current Deposits 6,314 8,572 10,658 68.8 24.3
27
Other highlights Q3,FY12 versus Q3,FY13
Particular (in ) Q3, FY12 Q4, FY12 Q1, FY13 Q2, FY13 Q3, FY13

Global Cost of Deposits 5.65 5.81 5.89 5.85 5.82
Domestic Cost of Deposits 6.90 7.17 7.30 7.36 7.33
Overseas Cost of Deposits 1.96 1.74 1.86 1.73 1.61

Global Yield on Advances 9.45 9.33 9.08 9.07 8.96
Domestic Yield on Advances 12.01 11.71 11.65 11.75 11.57
Overseas Yield on Advances 3.60 3.75 3.52 3.49 3.41
28
Other highlights Q3, FY12 versus Q3,FY13
Particular (in ) Q3, FY12 Q4, FY12 Q1, FY13 Q2, FY13 Q3, FY13

Global Yield on Investment 7.67 7.53 7.71 7.79 7.75
Domestic Yield on Investment 7.79 7.69 7.83 8.18 7.88
Overseas Yield on Investment 4.90 3.84 4.91 4.64 4.67

Global NIM 2.99 2.96 2.73 2.71 2.65
Domestic NIM 3.51 3.44 3.22 3.23 3.08
Overseas NIM 1.64 1.68 1.55 1.54 1.58

• The Banks NIM in Domestic Operations stood at
  3.17 and in Overseas Operations at 1.62 and in
  Global Operations at 2.73 during Apr-Dec, FY13.

29
Key productivity indicators Q3, FY12 versus Q3,
FY13
Particulars Q3, FY12 Q3, FY13
Business per Employee (Rs crore) 13.53 15.07
Business per Branch (Rs crore) 162.85 170.34
Profit per Employee (Rs lakh) 12.27 9.33
Profit per Branch (Rs lakh) 137.77 96.53
30
Non-Interest income Q3, FY12 and Q3, FY13
(Rs crore) Q3, FY12 Q3, FY13 Change (Y-O-Y)
Commission, Exchange, Brokerage 292.97 294.62 0.6
Incidental Charges 74.20 79.78 7.5
Other Miscellaneous Income 84.79 76.63 -9.6
Total Fee-Based Income 451.96 451.03 --
Trading Gains 385.50 135.59 -64.8
Profit on Exchange Transactions 240.74 180.36 -25.1
Recovery from PWO 71.13 73.61 3.5
Total Non-Interest Income 1,149.33 840.59 -26.9
31
Provisions contingencies Q3, FY12 and Q3,
FY13
(Rs crore) Q3, FY12 Q3, FY13 Absolute Change
Provision for NPA Bad Debts Written-off 508.92 817.16 308.24
Provision for Depreciation on Investment 224.11 72.34 -151.77
Provision for Standard Advances 99.51 129.32 29.81
Other Provisions (including Provision for staff welfare) 4.21 10.48 6.27
Tax Provisions 468.59 202.62 -265.97
Total Provisions 1,305.34 1,231.92 -73.42
32
Banks domestic treasury
highlights Q3, FY13

• Trading Gains sequentially improved from Rs 112
  cr in Q2, FY13 to Rs 136 cr in Q3, FY13 on
  account of improved market dynamics during the
  quarter. Even Forex profits remained firm on
  sequential basis.
• As of Dec 31, 2012, the share of SLR Securities
  in Total Investment was 84.87.
• The Bank had 78.59 of SLR Securities in HTM and
  21.12 in AFS at end-Dec 2012.
• During the year FY13, the Bank shifted SLR
  securities worth Rs 1,265.42 cr (at book value)
  from AFS to HTM on 3rd April and provided Rs
  20.69 cr as depreciation on shifting.
• The benchmark G-sec yield at the time of shifting
  ruled at 8.57.
• The per cent of SLR to NDTL as on 31st Dec, 2012
  was closer to 28.0.
• As on 31st Dec, 2012, the modified duration of
  AFS investments was 3.34 years that of HTM
  securities was 5.00 years.
• Total size of Banks Domestic Investment Book as
  on 31st Dec, 2012 stood at Rs 98,612.48 crore.

33
Highlights of overseas business Apr-Dec,
FY13

• As on 31st Dec, 2012, the Banks Overseas
  Business contributed 30.4 to its Total
  Business, 24.4 to Gross Profit and 37.7 to Core
  Fee-based income (i.e., Commission, Exchanges,
  brokerage, etc.)
• Out of the Total Overseas Loan-book, 53.6 was
  Buyers Credit/ Export Credit 27.4 in was
  Syndicated Loans/ECBs (mostly to Indian
  corporates) 19.01 was Local Credit.
• Less riskiness of the Overseas Loan-book was
  responsible in keeping Gross NPA () in Overseas
  Assets at 0.73 as on 31st Dec, 2012.
• Even the Cost-Income Ratio in Overseas operations
  was more favourable at 17.59 in Apr-Dec, FY13
  versus 43.62 in Domestic operations.
• In Q3, FY13, the NIM (as of interest-earning
  assets) in Overseas operations stood at the
  healthy level of 1.58 Gross Profit to Avg.
  Working Funds ratio at 1.42 and Return on Equity
  at 15.66.
• During Apr-Dec, FY13, Bank opened nine new
  branches in its overseas territories, out of
  which two belonged to New Zealand two to Uganda
  and one each was opened in Mauritius, Ghana,
  Oman, Kampala Australia.

34
NPA movement (Gross) Apr-Dec, FY13

Particular ( Rs crore)
A. Opening Balance 4,464.75
B. Additions during Apr-Dec, FY13 4,727.80
Out of which, Fresh Slippages 4,490.28
C. Reduction during Apr-Dec, FY13 1,871.10

Recovery 400.50
Upgradation 339.84
PWO WO 1,127.63
Exchange Difference 3.13
NPA as on 31st Dec, 2012 7,321.45
Recovery in PWO in Apr-Dec, FY13 222.07
35
Sector-wise gross NPAs End-Dec, FY12 FY13
Sector Gross NPA () End-Dec, FY12 Gross NPA () End-Dec, FY13
Agriculture 4.01 4.89
Large Medium Industries 1.36 3.27
Retail 2.13 1.93
Housing 1.85 1.54
SSI (Mfg) 1.35 4.31
Total MSME 3.09 4.03
Overseas Operations 0.69 0.73
36
Banks domestic exposure to different industries,
31st Dec, 2012
Industry Share in Gross Domestic Credit as on 31st Dec, 2012 Industry Share in Gross Domestic Credit as on 31st Dec, 2012
1. Infrastructure 14.5 10. Paper Paper Products 0.8
2. Basic Metals Metal Products 7.1 11. Gems Jewellery 0.7
3. Textiles 5.1 12. Mining Quarrying 0.6
4. Chemicals Chemical Products 3.3 13. Cement Cement Products 0.6
5. All Engineering 3.0 14. Vehicles, Vehicle parts Transport Equipment 0.5
6. Construction 2.5 15. Glass Glassware 0.4
7. Food Processing 2.4 16. Beverages 0.3
8. Rubber, Plastic their Products 1.5 17. Leather Leather Products 0.2
9. Petroleum 1.4 18. Wood Wood Products 0.2
37
Cumulative position of
restructured assets

• During the past 57 months (1 Apr08 to 30
  Sept12), Bank has restructured 89,050 accounts
  amounting Rs 18,268 crore in its Domestic
  operations.
• Within this, the loans worth Rs 771 cr were
  restructured in Q1, FY13, Rs 933 cr in Q2, FY13
  Rs 1,587 cr in Q3, FY13 Rs 8,265.41 cr in FY12,
  Rs 1,597.81 cr in FY11, Rs 2,455.05 cr in FY10
  Rs 2,658.57 cr in FY09.
• For the period of 57 months, out of the total
  amount restructured, Rs 13,974 cr (76.5)
  belonged to wholesale banking, Rs 2,600 cr
  (14.2) to SMEs, Rs 624 cr (3.4) to retail and
  Rs 1,069 cr (5.9) to agriculture sector.
• About 118 accounts (of Rs 1 crore above)
  restructured on/after 1st Apr, 2008 with
  aggregate outstanding of Rs 2,496 cre slipped to
  NPA after restructuring and most of them belonged
  to the SME segment.
• In cumulative terms, the Bank has restructured 89
  accounts in its Overseas operations involving the
  amount of Rs 4,725 crore.
• Out of these, the accounts restructured during
  Apr-Dec, FY13 are 20 involving the amount of Rs
  1,069 crore.

38
Sectoral deployment of credit at end-Dec, 2012
Sector share in Gross Domestic Credit
Agriculture 14.0
Retail 17.2
SME 19.0
Wholesale 35.9
Misc. including Trade 13.9
Total 100.0
39
Banks BPR Project - Navnirmaan

• Project Navnirmaan has altogether -18-
  initiatives covering both Business Process
  Re-engineering and Organization Re-structuring,
  aimed at transforming the Banks branches into a
  sales and service centres through sustained
  Centralization to make possible Sales growth,
  superior customer experience and alternate
  channel migration.
• The most important initiatives are-
• Conversion of all metro and urban branches into
  Baroda Next within a timeline -1328- branches
  rolled out so far across -13- Zones and -56-
  Regions.
• Creation of automated and lean Back Offices
  like
• City Back Office Automated cheque processing
  introduced at Mumbai, Surat and Ahmedabad.
• Regional Back Office -10- RBOs functioning for
  CASA opening No. of branches linked 2710
  issuance of Personalized Cheque Books No. of
  branches linked - 3788. More than 5,700 CASA are
  being opened per day.
• Establishment of -2- Contact Centres at Lucknow
  and Baroda.
• Introduction of frontline automation viz. Queue
  Management System and Cheque deposit Machines at
  select branches for customer convenience.
• Conducting Trainings and Boot camps.
• Organization Re-structuring creation of Selling
  roles at branch, R.O. and Z.O.
•  The initial impact of Baroda Next migration has
  been found to be rewarding both in terms of
  increased customer satisfaction and CASA growth.

40
Banks BPR Project - Navnirmaan

• The said impact has been sustained at 110 Baroda
  Next branches evaluated on (a) sales and (b)
  customer satisfaction during first stage of
  evaluation.
• Another evaluation carried out recently on (a)
  Customer satisfaction at -177- and (b) Employee
  satisfaction at -171 Baroda Next branches,
  shows significant improvement.
• A certification procedure for Baroda Next
  branches have been introduced in terms of which
  process compliance/ adherence are being evaluated
  by Banks Internal inspectors and CSAT / ESAT
  externally evaluated by engaging Market Research
  Agencies.
• To sustain Sales Growth, a new Sales Operating
  Model has been rolled out in -629- branches in
  -25- Regions over 20 cities.
• Out of -15- Mid-corporate branches planned, all
  are functional.
• Further centralization initiatives are being
  piloted to enable the branches to become a
  Sales-cum-Service Outlet.
• Banks Hi-tech City branch, Hyderabad has been
  transformed into an e-branch.

41
Banks HR initiatives

• Recruitment - FY13
• The Bank has been hiring on a sustained basis
  year after year, to cater to the gap created by
  superannuation, sustained business growth and
  rapid branch expansion.
• (Joined up to 31.12.2012)
• New Hiring in FY12-13 -3400
  (2700)
• Probationary Officers - 600
  (429)
• Specialist officers - 150
  (54)
• Baroda Manipal Trainees - 400
  (342)
• Campus Recruitment - 250
  (237)
• Clerks - 2,000 (1,638)
• Massive skills up-gradation and several
  structured programmes for new joinees werec
  carried out during the year to develop important
  Banking skills with a focus on skills needed for
  Credit Forex operations, soft skills, etc.

42
Banks HR initiatives

• A dedicated HR transformation project SPARSH
  has been initiated by the Bank - to revamp its
  existing HR processes, structures and policies.
  Various measures in the direction of talent
  management, succession planning, creating a
  scientific staffing model manpower planning,
  development and capability building, performance
  management, etc. have been initiated.

• Opening of the Baroda Manipal School of Banking
  as an innovative and new channel of resourcing of
  trained manpower in the Bank. Around 180 students
  are being inducted into this school every quarter
  for a focussed grooming and for a one-year
  full-time PG course in banking which is tailored
  to the Banks specific requirements.

43
Future Outlook Guidance

• Since mid-Sept, 2012, Indias government has
  taken several corrective measures to improve
  fiscal consolidation and investment climate.
• RBI also has cut both the CRR and key policy
  rates to address the risks to growth liquidity.
• Advancing of long-awaited reforms has helped
  lift the stock market and the rupee.
• Yet, given the intensity of macro headwinds, the
  nation is likely to post the growth between 5.2
  to 5.5 in FY13.
• As the outlook for credit is still not very
  positive, the Bank will continue with its
  Cautious stance.
• Strategic thrust will be on protecting the
  Financial Soundness that the Bank has
  consistently maintained throughout the period of
  global turbulence.
• With a primary focus on asset quality management,
  CASA mobilisation, recovery, liquidity
  management, etc.
• The positive factor for the Bank, going ahead is
  the Consistent Leadership. I would like to
  conclude by giving the quote of Tom Seaver
• In baseball my theory is to strive for
  consistency, not to worry about the numbers. If
  you dwell on statistics you get shortsighted, if
  you aim for consistency, the numbers will be
  there at the end.
• Thank you.