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BOB Profile-Sept05

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... 24,994 32,435 30,934 23.8 -4.6 Home Loans 10,779 12,539 12,910 19.8 3.0 SME Credit 21,593 27,365 28,367 31.4 3.7% Farm Credit* 20,475 24,529 23,211 13.4 -5.4% ... – PowerPoint PPT presentation

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Title: BOB Profile-Sept05


1
Bank of Baroda Standing Tall in Tough
Times Performance Analysis Q1, 2011-12
(FY12) Dr Rupa Rege Nitsure Chief
Economist July 27, 2011
2
Bank of Baroda Key Strengths
  • Bank of Baroda is a 103 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 in Profit-making and
Dividend Payment
Overseas Business Operations extend across 25
countries through 86 Offices
Modern Contemporary Personality
Strong Domestic Presence through 3, 409
Branches
Pioneer in many Customer-Centric Initiatives
Provides Financial Services to over 40.5 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
Indian Branches
A well-accepted recognised Brand in Indian
banking industry
3
Domestic Branch Network
  • Banks network of domestic branches as on 30th
    June, 2011 was 3,409 no. of ATMs were 1,657.
  • During Q1, FY12, the Bank opened 45 new
    branches.
  • In FY12, the Bank plans to open 269 branches in
    Tier-1 Tier-2 centres and 253 branches in
    Tier-3 to Tier-6 centres.
  • Also, 126 branches under the Branch Expansion
    Plan of FY11 are yet to be opened.
  • Newly opened branches in Q1, FY12 are mainly in
    Maharashtra followed by Gujarat, M.P. A.P.
  • Around 34.4 of the Banks network at the
    end-June, FY12 was situated in rural areas.

Regional Break-up of Domestic Branches as on 30th June, 2011 Regional Break-up of Domestic Branches as on 30th June, 2011 Regional Break-up of Domestic Branches as on 30th June, 2011 Regional Break-up of Domestic Branches as on 30th June, 2011
Metro Urban Semi-Urban Rural
756 639 842 1,172
4
Robust Technology Platform
  • As on 30th June 2011, the Banks entire domestic,
    overseas and RRBs i.e., five sponsored RRBs
    related operations were on the CBS platform.
  • Even the branches of Memon Co-op. Bk. Ltd. taken
    over by the Bank in April11 are successfully
    migrated to the CBS platform.
  • Bank has developed 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) online payment of bills
    taxes, rail-ticket booking, temple donations,
    online subscription to IPOs/FPOs thru ASBA
    institutional fee payment.
  • Bank has implemented Internet Banking in several
    of its overseas territories a Special Fund Mgmt
    Solution in UAE New Zealand.
  • 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.
  • 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.
  • Anti Money Laundering (AML) has been implemented
    in India and 20 overseas territories.

5
Robust Technology Platform
  • Bank has successfully 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.
  • Enterprise-wide General Ledger (EWGL) has been
    successfully implemented for the Banks domestic
    and overseas business.
  • 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 Ahmedabad,
    Pune, Lucknow New Delhi.
  • Back Office functions have been centralised in
    the Bank at City Back Offices five Regional
    Back Offices ( at Baroda, Jaipur, Lucknow, Bhopal
    Coimbtore) to improve the delivery of services.
  • On a pilot basis, Automated Cheque Processing
    Centre (Inward Outward) has been set up in
    Mumbai.
  • BoB IIT an exclusive IT Training Centre has
    been set up in Ghandhinagar to educate the Banks
    staff in all IT related products services.

6
Concentration () Domestic Branch Network
7
Pattern of Shareholding 30th June, 2011
As on 30th June, 2011
  • Share Capital Rs 392.81 crore
  • No. of Shares 391.55 million
  • Net worth Rs 20,785.30 crore
  • B. V. per share Rs 530.85
  • Return on Equity 19.88
  • BOB is a Part of the following Indexes
  • BSE 100, BSE 200, BSE 500 Bankex
  • Nifty Junior, BankNifty, CNX 100, CNX 500
  • BOBs Share is listed on BSE and NSE in Future
    and Options segment also.

8
Comparative Performance of BoB Stock Jun10
to Jun11
Index/Stock Value (30th June10) Value (30th June11) Change
Sensex 17,700.90 18,845.87 6.5
Nifty 5,312.50 5,647.40 6.3
Bankex 10,765.03 12,821.05 19.1
BankNifty 9,464.60 11,244.65 18.8
BoB-BSE 701.95 871.90 24.2
BoB-NSE 701.85 870.80 24.1
9
Indias Macro Health Q1, FY11 to
Q1, FY12
Economic Indicator Q1, FY11 Q2, FY11 Q3, FY11 Q4, FY11 Q1, FY12
Real GDP growth () 8.8 8.9 8.2 7.8 NA
Agriculture () 2.8 4.4 8.9 7.5 NA
Industry () 11.4 9.0 5.7 5.3 NA
Services () 9.4 9.7 8.7 8.6 NA
Private Consumption Expenditure growth () (at current market prices) 26.5 19.5 18.4 17.0 NA
Gross Fixed Capital Formation ( to GDP) (at current market prices) 29.8 32.4 27.3 29.6 NA
SCB Credit growth (, y-o-y) 21.7 19.0 24.4 21.4 19.9
SCB Deposit growth (, y-o-y) 14.9 14.3 16.5 15.8 18.4
SCB Incremental Credit-Deposit Ratio () 100.85 93.02 105.13 97.50 79.61
WPI-Inflation () (end-period) 10.6 9.3 8.9 9.6 9.4
Trade Balance ( US Billion) -32.2 -35.1 -21.3 -21.7 -31.6
Rupee-USD (, end-period) 46.60 44.92 44.81 44.65 44.72
Foreign Exchange Reserves (end-period, US Billion) 278.27 294.16 297.33 305.49 315.72
10
Quick Economic Observations
  • Tempo of global economic recovery has slowed down
    on account of various factors like elevated
    prices of crude oil other commodities,
    political tensions in Middle East, earthquake
    tsunami in Japan, sovereign debt problems of
    Europe and fiscal fragility of the U.S., etc.
  • Chronically high inflation pressures have started
    impacting adversely the investment sentiment and
    industrial production growth in India as well
  • Higher interest rates on term deposits have
    improved the pace of deposit mobilisation and
    reduced the gap between deposit and credit growth
  • While bank credit growth has decelerated to some
    extent, it is still above the indicative target
    of the RBI and has not shown a seasonal slack.
  • Rupee-USD Exchange Rate has shown a two-way
    movement
  • Equity markets remained sluggish, private
    placement market for bonds too was lack-lustre
    during Q1, FY12
  • Investments in physical assets improved
    non-bank finance to commercial sector remained
    healthy
  • Notwithstanding the partial signs of growth
    slowdown, the RBI has warned of inflationary
    risks and hence continuation of the
    anti-inflationary stance with a close watch on
    new information

11
Banks Business Growth (Y-O-Y) Jun06 to
Jun11
12
Banks Profitability Jun06 to Jun11
  • During the last five years, the Banks First
    Quarter Net Profit has grown at the robust CAGR
    of 44.6 .

13
Banks Asset Quality Jun06 to Jun11
14
Banks Business Performance Jun10 to
Jun11

Particular (Rs crore) Jun10 Mar11 Jun11 Y-O-Y () Change Over Mar11 ()
Global Business 4,40,262 5,34,116 5,45,283 23.9 2.1
Domestic Business 3,31,878 4,02,731 4,05,156 22.1 0.6
Overseas Business 1,08,384 1,31,385 1,40,127 29.3 6.7
Global Deposits 2,54,668 3,05,439 3,12,943 22.9 2.5
Domestic Deposits 1,96,166 2,33,323 2,36,536 20.6 1.4
Overseas Deposits 58,502 72,116 76,407 30.6 6.0
Global CASA Deposits 74,784 87,589 87,221 16.6 -0.4
Domestic CASA 69,114 80,181 80,225 16.1 0.05
Overseas CASA 5,670 7,407 6,996 23.4 -5.5
  • Share of Domestic CASA was at 33.92 in terms of
    Aggregate Deposits and at 35.90 in terms of Core
    Deposits as on 30th June, 2011.

15
Banks Business Performance Jun10 to
Jun11

Particular (Rs crore) Jun10 Mar11 Jun11 Y-O-Y () Change Over Mar11 ()
Global advances (Net) 1,85,595 2,28,676 2,32,340 25.2 1.6
Domestic Advances 1,35,712 1,69,408 1,68,621 24.3 -0.5
Overseas Advances 49,882 59,269 63,719 27.7 7.5

Retail Credit Of which 24,994 32,435 30,934 23.8 -4.6
Home Loans 10,779 12,539 12,910 19.8 3.0
SME Credit 21,593 27,365 28,367 31.4 3.7
Farm Credit 20,475 24,529 23,211 13.4 -5.4
Credit to Weaker Sections 11,012 13,245 13,248 20.3 0.02
As of Last Reporting Friday
16
Banks Business Performance Jun10 to
Jun11

Particular (Rs crore) Jun10 Mar11 Jun11 Y-O-Y () Change Over Dec10 ()
Global Saving Deposits 56,061 64,454 65,654 17.1 1.8
Domestic Savings Deposits 54,769 62,959 64,162 17.2 1.9
Overseas Savings Deposits 1,292 1,495 1,491 15.4 -0.3
Global Current Deposits 18,723 23,135 21,567 15.2 -6.8
Domestic Current Deposits 14,345 17,222 16,063 12.0 -6.7
Overseas Current Deposits 4,378 5,912 5,505 25.7 -6.9
17
Banks Profits NII Apr-Jun, FY11 FY12
Particular (Rs crore) Apr-Jun10 Apr-Jun11 Y-O-Y ()
Gross Profit 1,527.87 1,831.28 19.9
Net Profit 859.16 1,032.85 20.2
Net Interest Income 1,857.99 2,297.19 23.6
18
Other Highlights Q1,FY11 to Q1,FY12
Particular (in ) Q1, FY11 Q2, FY11 Q3, FY11 Q4, FY11 Q1, FY12

Global Cost of Deposits 4.39 4.50 4.53 4.79 5.36
Domestic Cost of Deposits 5.09 5.27 5.27 5.63 6.41
Overseas Cost of Deposits 1.95 2.02 1.94 1.83 1.80

Global Yield on Advances 8.17 8.40 8.58 8.74 9.11
Domestic Yield on Advances 9.79 10.17 10.34 10.65 11.23
Overseas Yield on Advances 3.67 3.75 3.70 3.54 3.38
19
Other Highlights Q1, FY11 to Q1,FY12
Particular (in ) Q1, FY11 Q2, FY11 Q3, FY11 Q4, FY11 Q1, FY12

Global Yield on Investment 6.66 7.06 7.39 7.45 7.47
Domestic Yield on Investment 6.83 7.24 7.56 7.60 7.59
Overseas Yield on Investment 3.71 3.71 3.85 4.34 4.86

Global NIM 2.90 3.02 3.20 3.45 2.87
Domestic NIM 3.43 3.62 3.82 4.16 3.39
Overseas NIM 1.31 1.33 1.40 1.41 1.37
20
Key Financial Ratios Q1, FY12 versus Q1, FY11
  • Return on Average Assets at 1.13 1.19 in Q1,
    FY11
  • Earning per Share at Rs 105.52 Rs 94.36 in Q1,
    FY11
  • Book Value per Share at Rs 530.85 Rs 402.08 in
    Q1, FY11
  • Return on Equity (ROE) at 19.88 23.46 in Q1,
    FY11
  • Capital Adequacy Ratio at 13.10 with Tier I
    Capital at 9.06
  • Cost-Income Ratio at 38.11 38.27 in Q1, FY11
  • Gross NPA ratio at 1.46 -- is one of the lowest
    for large-sized banks in India
  • Net NPA ratio too low at 0.44
  • NPA Coverage at the healthy level of 82.52
    (including the technical write-offs)
  • Incremental Delinquency Ratio contained at 0.25
    for Q1, FY12 This means 1.0 in annualised terms
    the best level by the international standards.

21
Key Productivity Indicators Q1, FY12 versus
Q1, FY11
Q1, FY11 Q1, FY12
Business per Employee (Rs crore) 10.57 12.65
Business per Branch (Rs crore) 129.07 146.97
Profit per Employee (Rs lakh) 2.23 2.57
Profit per Branch (Rs lakh) 27.22 29.83
22
Non-Interest Income Q1, FY11 and Q1, FY12
(Rs crore) Q1, FY11 Q1, FY12 Change (Y-O-Y)
Commission, Exchange, Brokerage 201.54 274.77 36.3
Incidental Charges 77.14 79.55 3.1
Other Miscellaneous Income 32.89 43.76 33.0
Total Fee-Based Income 311.57 398.08 27.8
Trading Gains 127.94 74.02 -42.4
Profit on Exchange Transactions 121.61 140.01 15.1
Recovery from PWO 56.12 28.76 -48.7
Total Non-Interest Income 617.25 640.87 3.8
23
Provisions Contingencies Q1, FY11 and
Q1, FY12
(Rs crore) Q1, FY11 Q1, FY12 Absolute Change
Provision for NPA Bad Debts Written-off 277.54 131.95 -146
Provision for Depreciation on Investment -58.91 138.54 197
Provision for Standard Advances 28.81 112.94 84
Other Provisions (including Provision for staff welfare) 3.89 7.62 4
Tax Provisions 417.38 394.37 -23
Total Provisions 668.71 785.42 117
24
Banks Treasury Highlights Q1, FY12
  • Treasury Income stood at the level of Rs 214.02
    crore in Q1, FY12
  • Out of this, Trading Gains Stood at Rs 74.01
    crore in Q1, FY12 despite the hardening of 31 bps
    in the benchmark yields on GoI paper
    lack-lustre equity markets.
  • As of June 30, 2011, the share of SLR Securities
    in Total Investment was 87.95
  • The Bank had 84.5 of SLR Securities in HTM and
    14.8 in AFS at end-June 2011.
  • The per cent of SLR to NDTL as on 30th June, 2011
    was 25.96.
  • While the modified duration of AFS investments is
    2.50 years that of HTM securities is 4.90 years.
  • Total size of Banks Domestic Investment Book as
    on 30th June, 2011 stood at Rs 79,818 crore.
  • Total size of Banks Overseas Investment Book as
    on 30th June, 2011 stood at Rs 3,084 crore.

25
Overseas Business Q1, FY12
  • As on 30th June, 2011, the Overseas Business
    contributed 25.7 to the Banks Total Business,
    19.4 to its Gross Profit and 35.5 to its Core
    Fee income.
  • While the Cost-Income Ratio for Domestic
    Operations stood at 41.53 in Q1, FY12, it was
    more favourable at 18.31 for the Banks Overseas
    Operations.
  • While the Gross NPA () in Domestic Operations
    stood at 1.77 at end-June, 2011, that for
    Overseas Operations was lower at 0.62.
  • The Gross Profit to Avg. Working Funds () for
    Overseas Operations stood at 1.40 in Q1, FY11
    and at 1.49 in Q1, FY12.
  • NIM as of Interest Earnings Assets in Overseas
    Operations improved from 1.31 in Q1, FY11 to
    1.37 in Q1, FY12.
  • Return on Equity in Overseas Operations too
    improved from 17.55 in Q1, FY11 to 21.44 in Q1,
    FY12.

26
NPA Movement (Gross) Q1, FY12

Particular ( Rs crore)
A. Opening Balance 3,152.50
B. Additions during Q1, FY12 584.82
Out of which, Fresh Slippages 566.19
C. Reduction during Q1, FY12 311.86

Recovery 125.47
Upgradation 71.48
PWO WO 114.91
Exchange Difference 0.00
NPA as on 30th June, 2011 3,425.46
Recovery in PWO in Q1, FY12 28.76
27
Sector-wise Gross NPAs Q1, FY12 versus Q1,
FY11
Sector Gross NPA () Q1, FY11 Gross NPA () Q1, FY12
Agriculture 3.43 4.10
Large Medium Industries 1.69 1.80
Retail 2.41 2.11
Housing 2.41 1.96
SSI (Mfg) 1.73 1.50
Total MSME 2.91 2.50
Overseas Operations 0.54 0.62
28
Cumulative Position of Restructured
Assets (Domestic)
  • During the past 39 months (1 Apr08 to 30
    June11), the Bank has restructured 74,050
    accounts amounting Rs 7,166.28 crore.
  • Within this, the loans worth Rs 454.85 crore were
    restructured in Q1, FY12 Rs 1,597.81 crore were
    restructured in FY11, Rs 2,455.05 crore in FY10
    Rs 2,658.57 crore in FY09.
  • For the period of 39 months, out of the total
    amount restructured, Rs 4,089.13 crore (57.1)
    belonged to wholesale banking, Rs 1,710.88 crore
    (23.9) to SMEs, Rs 583.83 crore (8.1) to retail
    and Rs 782.44 crore (10.9) to agriculture
    sector.
  • About 71 accounts (of Rs 1 crore above)
    restructured on/after 1st Apr, 2008 with
    aggregate outstanding of Rs 897.88 crore slipped
    to NPA after restructuring and most of them
    belonged to the SME segment.
  • Industry-wise break-up shows that the Banks
    restructured accounts are well spread over
    different sectors, the major ones being iron
    steel, cotton textiles, engineering,
    infrastructure, real estate, etc.
  • The Bank has primarily helped genuine borrowers
    who suffered from temporary cash flow problems
    due to the global crisis. These accounts are
    restructured looking into the internal strength
    and the financial viability of such borrowers.

29
Sectoral Deployment of Credit at end-June, 2011
Sector share in Gross Domestic Credit
Agriculture 13.6
Retail 18.1
SME 16.6
Wholesale 37.4
Misc. including Trade 14.3
Total 100.0
30
Banks BPR Project - Navnirmaan
  • Project Navnirmaan has altogether 18 activities
    covering both BPR Organisational Restructuring,
    aimed at transforming the Banks branches into a
    sales service centres to make possible a
    sustained sales growth, superior customer
    experience and alternate channel migration.
  • The most important initiatives were
  • Conversion of all metro urban branches into
    Baroda Next branches within a timeline 310
    branches rolled out so far across five zones 22
    regions
  • Creation of automated leaner Back Offices like
  • City Back Office (Automated cheque processing
    introduced in Mumbai on 17 Jan, 2011)
  • Regional Back Office five more offices are being
    opened coupled with technology changes for faster
    account opening.
  • Establishment of two Call Centres
  • Introduction of frontline automation at select
    branches for customer convenience
  • Creation of an Academy of excellence
  • Organisational Restructuring
  • The initial impact of Baroda Next migration has
    been found to be rewarding both in terms of
    increased customer satisfaction and CASA growth.
  • The said impact has been sustained at 110 Baroda
    Next branches recently evaluated on (a) sales and
    (b) customer satisfaction.

31
Banks HR Initiatives
  • Recruitment during FY11 Exercise Concluded
  • Probationary Officers 1,200
  • Specialist Officers (in various specialised
    disciplines) 319
  • Clerks 2,000
  • Campus Recruitment 608
  • (Bank visited nearly 102 institutes including
    some of the premier Business schools of the
    country)
  • Recruitment proposed in FY12
  • Probationary Officers 1,200
  • Campus Recruitment around 600 Currently in
    the process of joining
  • Specialist officers (in various disciplines)
    200
  • Clerks 2,000
  • New Hires Planned for Recruitment in FY12 4,000
  • Bank introduced a massive Leadership Development
    Programme in Aug10 under which 700 Senior
    Executives (AGMs/DGMs have been rigorously
    trained so far.
  • Bank proposes to inaugurate Baroda-Manipal
    School of Banking in August10 to create the
    future stream of professionally trained bankers
    for itself

32
  • Thank you.
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