Transcript BOB Profile-Sept05

Bank of Baroda:
Banking on Consistent Leadership
Performance Analysis: Q3 & Apr-Dec, 2012-13 (FY13)
Dr Rupa Rege Nitsure
Chief Economist
February 4, 2013
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
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)
A well-accepted &
recognised Brand in
Indian banking industry
Modern & Contemporary
Personality
Relatively Strong Presence
in Progressive States like
Gujarat & Maharashtra
Robust Technology
Platform with 100%
CBS in global operations
Results at a glance
Apr-Dec, FY13
•Operating Profit up 4.7% (y-o-y) to Rs
6,892 crore
Q3, FY13
•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 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
•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
•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.
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, Bank’s assets have grown 2.66 times.
•Bank’s nine-monthly net profit in Apr-Dec, FY13 is bigger than its full year’s profit in
FY10.
Impressive CAGR for key parameters (FY08 thru’ FY12)
Parameter
CAGR
(FY08 thru’FY12)
Assets
24.96%
Gross Profit
31.02%
Net Profit
36.65%
Net Worth
28.90%
Total Capital
26.84%
Tier-1 Capital
34.13%
Sustained expansion of global branch network
4500
3904
4000
3500
3000
2853
2899
2926
2974
3100
3148
3364
3959
4134
4192
3418
2500
2000
1500
1000
500
0
FY'08
FY'09
Domestic Brs
FY'10
FY'11
FY'12
Global Brs
Apr-Dec, FY13
Features of domestic branch network
•In a year’s time (Dec’11 to Dec’12), 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 Bank’s network at the end-Dec, FY13 was situated in rural areas.
•Moreover, the Bank’s 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
Metro
Urban
Semi-Urban
Rural
900
738
1,126
1,370
Deepening of overseas business ..
No. branches, offices, countries
120
97
100
80
72
58
60
47
40
25
24
20
0
Overseas Branches
Overseas Offices
Presence: No. of Countries
Other strengths: Robust technology platform
•Bank’s 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.
• Bank’s 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.
•Bank’s Mobile Banking (Baroda M-Connect) provides various facilities to its customers like balanceenquiry, mini-statements, linking of multiple accounts, funds’ transfer, bill payments, ticket booking,
shopping, feedback facilities, etc. IMPS facility is also launched for customers. Bank’s 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.
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 Bank’s 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.
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 Bank’s staff
in all IT related products & services.
Other strengths: Rich human resource base ….
Period
No. of Employees
No. of Officers
Q1, FY09
36,344
13,643
Ratio of Officers to Total
Employees
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%
Other strengths: Steady improvement in capital strength
Q1, FY09
Q2, FY09
Q3, FY09
Q4, FY09
Q1, FY10
Q2, FY10
Q3, FY10
Q4,FY10
Q1, FY11
Q2, FY11
Q3, FY11
Q4, FY11
Q1, FY12
Q2, FY12
Q3, FY12
Q4, FY12
Q1, FY13
Q2, FY13
Q3, FY13
Capital Adequacy Ratio
(Basel-II)
13.04%
12.57%
13.20%
14.05%
14.56%
14.67%
14.65%
14.36%
13.25%
13.22%
12.45%
14.52%
13.10%
12.73%
13.45%
14.67%
13.74%
12.91%
12.66%
Tier-I (%)
Tier-II (%)
7.79%
7.57%
8.53%
8.49%
8.81%
8.86%
9.31%
9.20%
8.16%
8.16%
7.70%
9.99%
9.06%
8.82%
9.31%
10.83%
10.13%
9.57%
9.33%
5.25%
5.00%
4.67%
5.56%
5.75%
5.81%
5.34%
5.16%
5.09%
5.06%
4.75%
4.53%
4.04%
3.91%
4.14%
3.84%
3.61%
3.34%
3.33%
Other strengths: Relatively stronger presence in progressive states
Rest of India, 23.5
Gujarat, 20.4
Maha & Goa, 11.7
UP & Uttaranchal,
21.9
Southern States, 11.2
Rajasthan, 11.3
Pattern of shareholding: 31st Dec, 2012
Indian
Public
4.65%
Corp.
Bodies
5.51%
As on 31st Dec, 2012
•Share Capital: Rs 412.38 crore
Others
0.24%
•No. of Shares:
• Net worth:
FIIs
16.60%
• B. V. per share:
411.12 million
Rs 30,167 crore (up 24.8% , y-o-y)
Rs 733.78 (up 18.9%, y-o-y)
•Return on Equity: 15.3% in Apr-Dec, FY13
Govt. of
India
54.31%
Insurance
Cos
12.72%
Mutual
Funds
5.97%
• BOB is a Part of the following Indexes
BSE 100, BSE 200, BSE 500 & Bankex
Nifty, BankNifty, CNX 100, CNX 200, CNX 500
• BOB’s Share is also listed on BSE and NSE in the
‘Future and Options’ segment.
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%
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 (endperiod, US $ Billion)
296.69
294.40
289.99
294.81
296.58
Total business growth from FY09..
800,000
672248
700,000
600,000
482211
416297
300,000
335,648
473825
491561
414733
402731
349206
316928
259958
190038
200,000
100,000
668552
534116
500,000
400,000
714051
700330
75,690
99,152
194726
208769
131385
0
FY09
FY10
FY11
Series1
FY12
Domestic Business
Q1, FY13
Q2, FY13
Q3, FY13
Overseas Business
•During the last three yrs & nine months, the Bank’s 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.
Total deposit growth from FY09..
450000
414733
408149
384871
400000
382739
350000
305439
300000
280135
241044
250000
200000
150000
192397
292877
295388
233323
185283
151409
104736
100000
50000
277839
40,988
104899
115273
119346
72,116
55,762
0
FY09
FY10
FY11
Total Deposits
FY12
Domestic Deposits
Q1, FY13
Q2, FY13
Q3, FY13
Overseas Deposits
•During the past three yrs & nine months, the Bank’s total deposits have grown 2.16 times.
•The pace of deposit mobilisation has been consistently well maintained avoiding any kind of
liquidity stress.
Total advances growth from FY09..
40.00%
300010
287377
34.25%
299318
292181
285813
30.70%
22.19%
228676
25.00%
22.19%
200010
23.00%
175035
150010
30.00%
25.70%
250010
35.00%
20.00%
143251
15.00%
14.80%
100010
10.00%
50010
5.00%
10
0.00%
FY09
FY10
FY11
Net Advances
FY12
Q1, FY13
Q2, FY13
Q3, FY13
Net Advances Growth
•During the past three & a half years, the Bank’s total advances (net terms) too have more
than doubled.
•However, the pace of advances growth has slowed down during FY13 on the back of lacklustre credit demand.
Steady gains in market share …..
4.40%
4.25%
4.20%
4.00%
3.97%
3.80%
3.63%
3.60%
3.40%
3.42%
3.20%
3.00%
Deposit Share
Advances Share
Consistency in profit-making
8000.00
Rs crore
7000.00
•During the last five years, the Bank’s Ninemonthly Net Profit has grown at the decent
CAGR of 24.4%.
6891.74
6579.44
6000.00
5035.80
5000.00
4000.00
3488.78
3306.49
2947.33
3000.52
3000.00
2214.10
3451.87
2152.05
2000.00
1159.08
1474.51
1000.00
0.00
Dec'07
Dec'08
Gross Profit
Dec'09
Dec'10
Dec'11
Net Profit
Dec'12
Relatively lower NPL ratios in the industry
Period
Q1, FY09
Q2, FY09
Q3, FY09
Q4, FY09
Q1, FY10
Q2, FY10
Q3, FY10
Q4,FY10
Q1, FY11
Q2, FY11
Q3, FY11
Q4, FY11
Q1, FY12
Q2, FY12
Q3, FY12
Q4, FY12
Q1, FY13
Q2, FY13
Q3, FY13
Gross
NPA
(%)
1.86%
1.62%
1.50%
1.27%
1.44%
1.30%
1.43%
1.36%
1.41%
1.39%
1.32%
1.36%
1.46%
1.41%
1.48%
1.53%
1.84%
1.98%
2.41%
Net
NPA
(%)
0.52%
0.43%
0.37%
0.31%
0.27%
0.27%
0.31%
0.34%
0.39%
0.38%
0.36%
0.35%
0.44%
0.47%
0.51%
0.54%
0.65%
0.82%
1.12%
Bank’s business: Dec’11 to Dec’12
Particular
(Rs crore)
Change
Over
Mar’12 (%)
Dec’11
Mar’12
Dec’12
Y-O-Y
(%)
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.
Bank’s business: Dec’11 to Dec’12
Particular
(Rs crore)
Change
Over
Mar’12 (%)
Dec’11
Mar’12
Dec’12
Y-O-Y
(%)
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
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
Home Loans
Bank’s business: Dec’11 to Dec’12
Particular
(Rs crore)
Dec’11
Mar’12
Dec’12
Y-O-Y
(%)
Change
Over
Mar’12
(%)
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
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
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 Bank’s 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.
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
Non-Interest income: Q3, FY12 and Q3, FY13
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%
1,149.33
840.59
-26.9%
(Rs crore)
Total Non-Interest Income
Provisions & contingencies: Q3, FY12 and Q3, FY13
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
468.59
202.62
-265.97
1,305.34
1,231.92
-73.42
(Rs crore)
Tax Provisions
Total Provisions
Bank’s 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 Bank’s Domestic Investment Book as on 31st Dec, 2012 stood at Rs 98,612.48
crore.
Highlights of overseas business: Apr-Dec, FY13
•
As on 31st Dec, 2012, the Bank’s “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 AprDec, 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.
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
NPA as on 31st Dec, 2012
Recovery in PWO in Apr-Dec, FY13
3.13
7,321.45
222.07
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
Bank’s 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%
Cumulative position of restructured assets
•
•
During the past 57 months (1 Apr’08 to 30 Sept’12), 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.
Sectoral deployment of credit at end-Dec, 2012
Sector
% share in Gross
Domestic Credit
Agriculture
14.0%
Retail
17.2%
SME
19.0%
Wholesale
Misc. including
Trade
Total
35.9
13.9
100.0%
Bank’s BPR Project - Navnirmaan
•Project Navnirmaan has altogether -18- initiatives covering both Business Process Re-engineering and
Organization Re-structuring, aimed at transforming the Bank’s 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.
Bank’s 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 Bank’s 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 -629branches 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”.
•Bank’s Hi-tech City branch, Hyderabad has been transformed into an e-branch.
Bank’s 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.
Bank’s 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 Bank’s specific requirements.
Future Outlook & Guidance
•Since mid-Sept, 2012, India’s 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.