Transcript Document 7144145

Bank of Baroda
A Bank of Credible Track Record
( Q2 & H1 , 2010-11)
Dr Rupa Rege Nitsure
Chief Economist
October 28, 2010
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
in Profit-making and
Dividend Payment
Overseas Business
Operations extend across
26 countries
through 81 Offices
Pioneer in many
Customer-Centric
Initiatives
Strong Domestic
Presence through
3, 202 Branches
Provides Financial
Services to over
37.153 mln Customers
Globally
First PSB to receive
Corporate Governance
Rating (CAGR-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 Indian Branches
Domestic Branch Network
No. of Domestic Branches
3300
3202
3200
3029
3100
3000
•During H1, FY11, Bank opened 104
new branches and merged two
existing branches.
2886
2900
2775
2709
2800
•Around 35.98% of the Bank’s
branch network is located in rural
areas.
2700
2600
2500
2400
Sep'06
•Bank’s network of domestic
branches as on 30th Sept., 2010 was
3,202 & no. of ATMs were 1,443 .
Sep'07
Sep'08
Sep'09
Sep'10
Regional Break-up of
Domestic Branches as on 30th Sept, 2010
Metro
Urban
SemiUrban
Rural
692
591
767
1,152
•Newly opened branches are
primarily situated in UP &
Uttaranchal (38), Gujarat (13),
Northern (13) & Rajasthan (10)
zones.
•Bank proposes to open 300 more
branches by the end of FY11, for
which it has already received
authorisations.
Robust Technology Platform
•As on 30 Sept 2010, all domestic branches, that is 3,202 branches and 38 extension counters were on CBS.
•Additionally, 47 branches of 15 overseas territories and 28 branches of eight overseas subsidiaries are on
the CBS covering 96.15% of the Bank’s overseas network.
•A pilot roll out has started for the Bank’s RRBs and the Bank plans to achieve 100.0% roll out in its RRBs in
the current financial year.
•Bank’s Retail & Corporate Customers enjoy several facilities like internet banking, phone banking, rapid
funds2india – an online money transfer service, retail depository services, e-tax payment, NEFT/RTGS
through e-banking, sms alerts, cash mgmt services, online institutional trading, etc.
•As on 30 Sept., 2010, Bank had 1,443 ATMs – 910 Onsite ATMs & 533 Offsite ATMs.
• An Integrated Global Treasury Solution is implemented in UK, UAE, Bahamas, Baharain, Hong Kong,
Singapore & in India.
•AML System has been implemented in India and in 19 overseas territories.
• Bank has created an Online Centralised-Database of its employees, which enables speedy decisionmaking, promotions, selection, etc. through automated processes.
• Payment Messaging Solution has been implemented in 18 territories including India.
•Bank has implemented multiple accounts being linked to a single Debit Card (verified by Visa; CVV2) &
has also implemented 3DSecure feature & Back Office for Merchant Mgmt in the Internet Payment
Gateway.
•Document Mgmt System has been rolled out for Centralised Pension Payment Cell at Baroda.
•All Back-Office functions have now been effectively centralised in Bank of Baroda.
•Bank has also implemented the NRHM (software) for National Rural Health Mission for Gujarat &
Rajasthan and Solar Power Generation System – a Green Initiative in 64 branches.
Concentration (%): Domestic Branch Network
Rest of India, 21.61
Gujarat, 22.14
Maharashtra, 11.18
UP & Uttaranchal,
22.48
South, 10.85
Rajasthan, 11.74
Pattern of Shareholding: 30th Sept, 2010
As on 30th Sept., 2010
Indian
Public
6.0%
Corp.
Bodies
4.8%
Others
0.2%
FIIs
18.5%
•Share Capital
Rs 365.53 crore
•No. of Shares
364.27 million
• Net worth
Rs 15,669.06 crore
• B. V. per share
Rs 430.15
•Return on Equity (annualised): 23.98%
• BOB is a Part of the following Indexes
Insurance
Cos
7.7%
Govt. of
India
53.8%
Mutual
Funds
9.1%
BSE 100, BSE 200, BSE 500 & Bankex
Nifty Junior, BankNifty, CNX 100, CNX 500
• BOB’s Share is listed on BSE and NSE in
‘Future and Options’ segment also.
Comparative Performance of BoB Stock: Sept’09 to Sept’10
Value
(30th Sept’09)
Value
(30th Sept’10)
% Change
Sensex
17,126.84
20,069.12
17.2%
Nifty
5,083.95
6,029.95
18.6%
Bankex
9,855.60
14,025.04
42.3%
BankNifty
8,812.35
12,366.35
40.3%
BoB-BSE
482.40
872.80
80.9%
BoB-NSE
481.70
872.50
81.1%
Index/Stock
Awards & Accolades
•The Bank has received several awards during the calendar 2010 for its
consistent outstanding performance (both business & financial), superior
management, dedication to excellence and contribution to rural economy &
financial inclusion.
•It is the only Indian bank whose “Rank” has improved by 69 notches in just a
year’s time from 283 to 214 in the Banker’s (London) Top 1,000 World Banks.
•To list a few select awards that the Bank has received in the recent past,
•Business India’s “Best Bank” award for the year 2010
•Dainik Bhaskar-DNA India Pride Award 2010 – A Silver Trohy
•Dalal Street-KPMG DSIJ PSU Award 2010
•Runner Up in Financial Express Best Bank Awards under the
Nationalised Bank Category
•Innovative Brand Builder Award by CMO Asia Awards, Singapore
• Skoch Challenger Award for “Bank of the Year”
Indian Macro Scene during Sep’09 to Sep’10
WPI (%)
IIP Growth (%)
12
8
8.62
4.50
2
1.09
Nov'09
0
Sep'09
5.6
Rs/$
Bank Credit Growth (%)
25.0
49
21.7
19.7 19.4
18.1
20.0
19
48.1
48
46.51
47
15.1
12.2
15.0 12.6
47.07
46.95
16.7 17.6
14.8
8.51
1.48
4
5.8
10.28
6.92
6
10.2
10.31
Sept'10
11.5
11.39
Jul'10
15.2
9.68
11.00
May'10
14.7
9.3
8.53
10
10.23
Mar'10
17.7
12
15.2
14.5
Jan'10
16.3
Se
pt
'0
9
O
ct
'0
9
N
ov
'0
9
D
ec
'0
9
Ja
n'
10
Fe
b'
10
M
ar
'1
0
A
pr
'1
0
M
ay
'1
0
Ju
n'
10
Ju
l'1
0
A
ug
'1
0
20
18
16
14
12
10
8
6
4
2
0
46.53
46.17
46.37 46.46
46.08
46.4
46
9.5 10.0
44.93
44.9
45
10.0
44.36
44
5.0
43
0.0
42
Sep'09
Nov'09
Jan'10
Mar'10
May'10
Jul'10
Sept'10
Sep'09
Nov'09
Jan'10
Mar'10
May'10
Jul'10
Sept'10
Economic & Policy Environment in H1, FY11
•The IMF’s latest World Economic Outlook (Oct. 6) says global economic recovery is
proceeding, but it is an unbalanced recovery.
•Global recovery is sluggish in advanced countries but much stronger in emerging
and developing economies.
•India’s GDP grew 8.8% in Q1, FY11 over & above 8.6% in Q4, FY10.
•Growth in Q1, FY11 was driven by a strong growth rebound in manufacturing
sector and a few segments of services sector like hospitality & communications.
•India’s industrial output grew 10.6% (y-o-y) in Apr-Aug, FY11 versus 5.9% a year ago.
• However, the growth is still quite lop-sided and stresses are seen in sectors like
power generation, beverages, textiles, chemicals, wood products, consumer nondurables, etc.
•Thanks to good monsoon rains, India’s kharif foodgrain production in FY11 is estimated
at 114.63 mln tns – 10.4% higher than the last year’s level.
•India’s exports grew 28.6% (y-o-y) in Apr-Aug’10, while imports grew 33.1%, taking
trade deficit to US$56.62 bln in Apr-Aug’10, versus UD $40.28 bln a year ago.
•Higher trade deficit combined with the lower invisibles surplus has been putting
sustained adverse pressure on current account deficit.
Economic & Policy Developments in H1, FY11
•However, capital account surplus on the back of short term credit, ECBs, banking
capital, etc., has been adequately financing the current account deficit.
•Net investment of portfolio investors in India’s debt & equity segments amounted
to US $27.12 bln in H1,FY11.
•Indian rupee that depreciated against the USD by 3.5% in Q1, FY11 to 46.46 as on 30 Jun,
2010 bounced back in Q2 and appreciated by 3.3% during Q2, FY11 to 44.93 as on 30 Sept,
2010.
•Indian government’s Fiscal Deficit declined 16.9% (y-o-y) during Apr-Aug, FY11 mainly
on account of windfall from 3G & broadband spectrum auctions and decent revenue
generation.
•Inflation has emerged as a major concern in macroeconomic management and is still
sticky in the band of 8.5% to 9.0%.
•To counter inflationary pressures, the RBI has cumulatively raised Repo rate by 125
bps and Reverse Repo rate by 175 bps since Mar’10.
• Banking industry’s aggregate deposit growth at 14.3% (y-o-y) and credit growth at
19.0% (y-o-y) as on Sept 24, 2010 were way below market expectations. The broad money
supply expansion was also controlled at 14.7% (y-o-y).
Bank’s Business Growth (Y-O-Y): Sept’05 to Sept’10
Growth: Total Advances (%)
Growth: Total Deposits (%)
45.0
28.7
35.0
30.0
25.0
25.0
35.0
22.6
29.6
31.6
27.1
30.0
25.4
25.0
20.0
9.6
15.0
10.0
Sep'10
Sep'09
Se'08
Sep'07
Sep'10
Sep'09
Sep'08
Sep'07
Sep'06
0.0
Sep'05
5.0
0.0
Sep'06
10.0
5.0
Domestic CASA Growth (%)
Growth: Total Business (%)
32.2
29.9
20.0
0.0
0.0
Sep'10
5.0
Sep'09
5.0
Sep'08
10.0
10.0
Sep'07
15.0
Sep'06
15.0
27.3
18.2
17.3
7.9
Sep'10
16.5
22.2
Sep'09
25.0
25.0
Sep'05
23.7
30.0
Sep'08
24.0
27.3
Sep'07
30.0
26.3
Sep'06
35.0
20.0
30.9
Sep'05
15.0
40.0
Sep'05
20.0
22.0
30.1
45.0
Bank’s Profitability: H1,FY06 to H1, FY11
3500.00
Rs crore
3000.00
3184.61
•During the last five years, the Bank’s Half-yearly
Net Profit has grown at the CAGR of 35.2%
2500.00
2041.53
1878.46
2000.00
1585.81
1500.00
1319.56
1281.70
1066.67
1002.15
766.14
1000.00
658.03
500.00
416.01
451.68
0.00
H1-FY06
H1-FY07
Gross Profit
H1-FY08
H1-FY09
H1-FY10
Net Profit
H1-FY11
%
9
%
Bank’s Asset Quality: Sept’04 to Sept’10
8
4
3.5
7
6.34
3
6
2.5
Gross NPA
5
2.27
2
3.44
4
1.62
1.13
2
1
1.5
2.33
3
1.30
0.77
Net NPA
0.55
1.39
0.38
0.43
1
0.5
0.27
0
0
Sep'04
Sep'05
Sep'06
Sep'07
Sep'08
Sep'09
Sep'10
Bank’s Business Performance: Sep’09 to Sep’10
Sep’09
Mar’10
Sep’10
Y-O-Y
(%)
Change
Over
March
(%)
Global Business
3,56,274
4,16,080
4,62,619
29.9
11.2
Domestic Business
2,70,250
3,16,926
3,47,733
28.7
9.7
Overseas Business
86,025
99,153
1,14,885
33.6
15.9
Global Deposits
207355
2,41,044
2,69,660
30.1
11.9
Domestic Deposits
1,60,609
1,85,283
2,06,001
28.3
11.2
Overseas Deposits
46,746
55,762
63,659
36.2
14.2
Global CASA Deposits
62705
71,468
79,815
27.3
11.7
Domestic CASA
58,091
66,024
73,944
27.3
12.0
Overseas CASA
4,614
5,444
5,870
27.2
7.8
Particular
(Rs crore)
•Share of Domestic CASA improved from 35.23% in Q1, FY11 to 35.89% in Q2, FY11.
Bank’s Business Performance: Sep’09 to Sep’10
Sep’09
Mar’10
Sep’10
Y-O-Y
(%)
Change
Over
March
(%)
Global advances (Net)
1,48,919
1,75,035
1,92,959
29.6
10.2
Domestic Advances
1,09,641
1,31,644
1,41,732
29.3
7.7
Overseas Advances
39,278
43,392
51,227
30.4
18.1
21,403
24,248
27,192
27.0
12.1
9,353
10,313
11,324
21.1
9.8
SME Credit
16,666
21,111
23,506
41.0
11.3
Farm Credit
17,744
21,617
21,555
21.5
-0.3
Credit to Weaker
Sections
8,961
10,945
11,976
33.6
9.4
Particular
(Rs crore)
Out of Gross Domestic Credit,
Retail Credit
Of which:
Home Loans
Bank’s Business Performance: Sep’09 to Sep’10
Sep’10
Y-O-Y
(%)
Change
Over
March (%)
52,544
59,349
26.3
13.0
45,749
51,258
57,994
26.8
13.1
Overseas Savings
Deposits
1,239
1,286
1,355
9.3
5.4
Global Current
Deposits
15,717
18,924
20,466
30.2
8.1
Domestic Current
Deposits
12,343
14,766
15,950
29.2
8.0
Overseas Current
Deposits
3,375
4,158
4,516
33.8
8.6
Particular
(Rs crore)
Sep’09
Mar’10
Global Saving
Deposits
46,988
Domestic Savings
Deposits
Bank’s Profits & NII: Jul-Sep, FY10 & FY11
Particular
(Rs crore)
Gross Profit
Net Profit
Net Interest
Income
Jul-Sep’09
Jul-Sep’10
Y-O-Y
(%)
1,031.59
1,656.74
60.6
634.18
1,019.30
60.7
1,388.60
2,038.14
46.8
•The Bank’s NII grew sequentially from Rs 1,744.95 crore in JanMar’10 to Rs 1,857.99 crore in Apr-Jun’10 to Rs 2,038.14 crore on the
back of a healthy growth in credit and prudent management of
liabilities.
Other Highlights: For Last Select Quarters
Particular (in %)
Q2,
FY10
Q4,
FY10
Q1,
FY11
Q2,
FY11
Global Cost of Deposits
5.15
4.42
4.39
4.50
Domestic Cost of Deposits
5.87
5.08
5.09
5.27
Overseas Cost of Deposits
2.49
2.06
1.95
2.02
Global Yield on Advances
8.71
8.23
8.17
8.40
Domestic Yield on Advances
10.23
9.76
9.79
10.17
Overseas Yield on Advances
4.48
3.74
3.67
3.75
Other Highlights: For Last Select Quarters
Particular (in %)
Q2,
FY10
Q4,
FY10
Q1,
FY11
Q2,
FY11
Global Yield on Investment
6.69
6.51
6.66
7.06
Domestic Yield on Investment
6.87
6.72
6.83
7.24
Overseas Yield on Investment
4.33
3.68
3.71
3.71
Global NIM
2.63
2.97
2.90
3.02
Domestic NIM
2.89
3.50
3.43
3.62
Overseas NIM
1.59
1.30
1.31
1.33
Key Financial Ratios : H1, FY10 and H1,FY11

Return on Average Assets at 1.27% [1.13% in H1, FY10]

Earning per Share (annualised) at Rs 103.14 [Rs 72.46 in H1, FY10]

Book Value per Share at Rs 430.15 [Rs 348.70 in H1, FY10]

Return on Equity (ROE) at 23.98% [20.78% in H1, FY10]

Capital Adequacy Ratio at 13.22% with Tier I Capital at 8.16%
•
Cost-Income Ratio declined from 47.54% to 38.69% (Y-o-Y)

Gross NPA ratio increased marginally from 1.30% to 1.39% (Y-o-Y)

Net NPA ratio increased from 0.27% to 0.38% (Y-o-Y).

NPA Coverage at the healthy level of 73.11% (without technical write-offs) and at
85.56% (with technical write-offs)

Incremental Delinquency Ratio at 1.05% (annualised) in H1, FY11.
Key Financial Ratios : Q2, FY10 and Q2,FY11

Return on Average Assets at 1.34% [ 1.07% in Q2, FY10]

Earning per Share (annualised) at Rs 111.92 [Rs 69.64 in Q2, FY10]

Return on Equity (ROE) at 26.02% [ 19.97% in Q2, FY10]

Cost-Income Ratio declined from 48.00% in Q2, FY10 to 39.08% in
Q2, FY11

Incremental Delinquency Ratio at 0.16% (non-annualised) in Q2,
FY11 versus 0.37% (non-annualised) in Q1, FY11.
Non-Interest Income: Q2, FY10 and Q2, FY11
Q2, FY10
Q2, FY11
%
Change
(Y-O-Y)
Commission, Exchange,
Brokerage
192.05
248.28
29.3
Incidental Charges
78.22
90.50
15.7
Other Miscellaneous Income
53.67
63.20
17.8
Total Fee-Based Income
323.94
401.98
24.1
Trading Gains
120.54
110.13
-8.6
Profit on Exchange
Transactions
84.24
100.02
18.7
Recovery from PWO
66.61
69.16
3.8
Total Non-Interest Income
595.33
681.29
14.4
(Rs crore)
Provisions & Contingencies: Q2, FY10 and Q2, FY11
(Rs crore)
Q2, FY10
Q2, FY11
% Change
(Y-O-Y)
Provision for NPA & Bad
Debts Written-off
172.16
142.26
-17.4
Provision for Depreciation
on Investment
-61.07
-20.11
--
Provision for Standard
Advances
1.49
52.04
3392.6
Other Provisions (including
Provision for staff welfare)
3.75
11.30
201.3
Tax Provisions
281.08
451.95
60.8
Total Provisions
397.41
637.44
60.4
Bank’s Treasury Highlights: Q2 and H1, FY11
•
Treasury Income stood at the healthy level of Rs 210.15 crore in Q2, FY11
and at Rs 459.70 crore in H1, FY11.
•
The Bank’s Trading Gains Stood at Rs 110.13 crore in Q2, FY11 and at Rs
238.07 crore in H1, FY11.
•
As of September 30, 2010, the share of SLR Securities in Total Investment
was 85.85%.
•
The Bank had 78.35% of SLR Securities in HTM and 20.92% in AFS at endSeptember 2010.
•
The per cent of SLR to NDTL as on 30th September, 2010 was 26.79%.
•
While the modified duration of AFS investments is 2.52 years; that of
HTM securities is 5.15 years.
•
Total size of Bank’s Domestic Investment Book as on 30th September, 2010
stood at Rs 63,081.12 crore.
•
Total size of Bank’s Overseas Investment Book as on 30th September, 2010
stood at Rs 3,193 crore.
Overseas Business: H1, FY11
•
As on 30 Sept, 2010, the “Overseas Business” contributed 24.8% to the Bank’s
Total Business, 16.9% to its Gross Profit and 31.6% to its Core Fee income.
•
While the Cost-Income Ratio for Domestic Operations stood at 41.51% in H1,
FY11, it was more favourable at 19.74% for the Bank’s Overseas Operations.
•
While the Gross NPA (%) in Domestic Operations stood at 1.68% at endSeptember, 2010, that for Overseas Operations was lower at 0.58%.
•
The ROAA for Overseas Operations stood at 1.05% in Q2, FY11 and at 0.98% in
H1, FY11.
•
The Return on Avg. Net Worth for Overseas Operations improved from 16.41%
at end-June, 2010 to 19.23% at end-Sept, 2010.
•
During H1, FY11, the Bank raised US $350 mln for 5.5 years at 4.75% coupon
(YTM: 4.886) under its MTN programme to finance asset growth in overseas
operations.
Capital Adequacy & Capital Raising in H1, FY11
•
The Bank’s CRAR (Basel II) as on 30th Sept., 2010 was at 13.22%; of
which Tier1 was at 8.16% and Tier 2 at 5.07%.
•
The size of Bank’s risk-weighted assets as on 30th September, 2010 was
Rs 1,85,282 crore.
•
The Bank proposes to maintain its CRAR in the band of 13.0% to 13.5%
in the coming years (with the Tier 1 between 8.0% and 8.5%).
•
The Bank raised Rs 2,211.50 crore during H1, FY11 by way of the
following issues.
• Subordinated Upper Tier II Bonds (maturing in 2025): Rs 500 crore
in May, 2010
• Subordinated Upper Tier II Bonds (maturing in 2025): Rs 500 crore
in June, 2010
• Subordinated Upper Tier II Bonds (maturing in 2025): Rs 500 crore
in August, 2010
• Perpetual [IPID] (maturing in 2020): Rs 711.50 crore in August,
2010
NPA Movement (Gross): H1, FY11
Particular
A. Opening Balance
( Rs crore)
2,400.69
B. Additions during H1, FY11
954.31
Out of which, Fresh Slippages
919.63
C. Reduction during H1, FY11
635.15
Recovery
242.45
Upgradation
144.67
PWO & WO
248.03
Exchange Difference
NPA as on 30th September, 2010
Recovery in PWO in H1, FY11
--
2,719.85
125.28
Sector-wise Gross NPAs: H1, FY10 & FY11
Sector
Gross NPA
(%)
H1, FY10
Gross NPA
(%)
H1, FY11
Agriculture
2.09
3.44
Large & Medium
Industries
1.21
1.56
Retail
2.38
2.12
Housing
2.67
2.13
SME
1.70
2.94
Cumulative Position of Restructured Assets (Domestic)
•
During 30 months (1 Apr’08 to 30 Sep’10), the Bank has restructured
accounts amounting Rs 5,432.66 crore.
•
Within this, the loans worth Rs 319.04 crore were restructured in H1, FY11.
•
For the period of 30 months, out of the total amount restructured, Rs 2,845.44
crore (52.4%) belonged to wholesale banking, Rs 1,345.59 crore (24.8%) to
SMEs, Rs 566.08 crore (10.4%) to retail and Rs 675.55 crore (12.4%) to
agriculture sector.
•
About 41 accounts (of Rs 1 crore & above) restructured on/after 1st Apr,
2008 with aggregate outstanding of Rs 539.01 crore slipped to NPA after
restructuring and most of them belonged to the SME segment.
•
Industry-wise break-up shows that the Bank’s 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.
Sectoral Deployment of Credit at end-Sept, 2010
Sector
% share in Gross
Domestic Credit
Agriculture
15.0
Retail
18.9
SME
16.3
Wholesale
36.3
Miscellaneous
13.5
Total
100.0%
Economic Outlook
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The IMF forecasts global output to increase by 4.8% in 2010 and by 4.2% in
2011 reflecting a temporary slowdown spanning the second half of this year.
It has revised upwards India’s economic growth forecast for 2010 from 9.4% to
9.7% citing strengthening local consumer demand.
• However, it has maintained its 2011 economic growth forecast for India at
8.4%.
Indian policymakers project India’s economy to expand by 8.0% to 8.5% in
FY11.
While a good harvest season augurs well for domestic consumption, inflation
inertia and appreciating rupee pose significant challenges for policymakers.
Credit growth is still not highly broad-based and is expected to stay in the
band of 18% to 20% for the banking industry in FY11.
Slow pace of deposit mobilisation and large IPO issues have created shortterm tightness in liquidity and pressure on short term interest rates.
Busy season of H2, FY11 & continuation of tightening cycle are supportive of
an upward bias in long-term interest rates.
Banks will continue to focus on the CASA franchise and recovery from the non
performing loans.
Pressures on asset quality have eased on the back of improving rating
upgrades for the corporates.
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 Sep’07 to Sep’10, the Bank’s market
share in Deposits has gone up from 3.62% to 3.65% and in Advances
from 3.45% to 3.71%.
•The Bank would grow its deposits in the band of 20% to 22.0%; credit in the
range of 23.0% to 24.0%, fee-based income in line with the loan-book and
overall profitability by 25.0%, factoring in various downside risks stemming
from the economic environment.
•The Bank is building Strong Foundation for Future Growth by
•working aggressively on enhancing the HR capabilities
•working in a dedicated fashion on its BPR project in consultation with
Mckinsey & Co.
•focusing on development of marketing and sales & service culture
•expanding the market share in both Indian and overseas territories
•raising capital at every appropriate opportunity
Bank’s BPR Project - Navnirmaan
•Roadmap of the Project Navnirmaan
•Design : 4 Months
•Pilot & Execution: 5 to 12 months
•Roll-Out: 2 to 3 years
•Project Navnirmaan has already entered the Implementation stage
•There are in all 18 activities underway focusing on superior
customer experience, customer convenience, capacity building of
employees & leveraging technology.
•As a part of rollout, all branches at metro & urban centres shall be
brought under the new model of Baroda Next branch
• Training system is being revamped and an Academy of Excellence
is being created to meet the soft skill requirement of the employees
besides developing a pipeline of business leaders
•Organisational restructuring is being undertaken to align the Bank
with redesigned processes and prepare it for the challenges of
ambitious growth
Bank’s HR Initiatives
•Recruitment during FY11
•Probationary Officers – 1,200
•Specialist Officers (in various specialised disciplines) – 345
•Clerks – 2,000 (in progress)
•Campus Recruitment – 616
•(Bank visited nearly 75 institutes including some of the premier Business schools of
the country)
•Total New Hires Joining BoB in FY11 : 4,161
•Tentative Recruitment Plans for FY12
•Probationary Officers – 1,500
•Campus Recruitment – around 800
•Specialist officers (in various disciplines) – 200
•Clerks – 1,700
•New Hires Planned for Recruitment in FY12: 4,200
•Bank has launched two massive Leadership Development Programmes for 1,200 of its
branch heads, 300 AGMs/DGMs – unparalleled in industry & first of its kind for an Indian
state-owned Bank.
Thank you.