Bank of Baroda
BANKING
Bank of Baroda Financial Results
FY 2012-13 (FY13) and Q4: FY13
· Global Business crosses Rs 8.00 lakh crore mark
· Operating Profit for FY13 at Rs 9,074 crore & Net Profit at Rs 4,481 crore
· Stable Asset Quality ratios with GNPA at 2.40% & NNPA at 1.28%
· ROAA at 0.90% in FY13
· CRAR at 13.30% with Tier 1 Capital at 10.13% for FY13
· NIM at 3.11% in Domestic Operations & at 2.66% in Global Operations
· Global Customer Base crosses the mark of 50 million in FY13
Bank of Baroda has announced its audited results for the fourth quarter of 2012-13 (or Q4, FY13) and for the full year 2012-13 or FY13 (April-March), following the approval of its Board of Directors on May 13, 2012.
Results at a Glance
Results for Q4, 2012-13
(January-March)
|
Results for 2012-13
(April-March)
| |||||||||||||||
Q4
2012-13
|
Q4
2011-12
|
%
Change
|
Apr-Mar
2012-13
|
Apr-Mar
2011-12
|
% Change
| |||||||||||
Total Income
|
10,262.50
|
9,016.31
|
13.8
|
38,827.28
|
33,096.05
|
17.3
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Interest Income
|
9,071.57
|
8,118.52
|
11.7
|
35,196.65
|
29,673.72
|
18.6
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Other Income
|
1,190.93
|
897.79
|
32.7
|
3,630.63
|
3,422.33
|
6.1
| ||||||||||
Total Expenses
|
8,080.46
|
6,965.38
|
16.0
|
29,753.50
|
24,465.68
|
21.6
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Interest Expenses
|
6,257.58
|
5,321.12
|
17.6
|
23,881.39
|
19,356.71
|
23.4
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Net Interest Income
|
2,813.99
|
2,797.40
|
0.6
|
11,315.26
|
10,317.01
|
9.7
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Staff Expenses
|
1,139.30
|
1,019.56
|
11.7
|
3,449.65
|
2,985.58
|
15.5
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Operating Expenses
|
1,822.88
|
1,644.26
|
10.9
|
5,872.11
|
5,108.97
|
14.9
| ||||||||||
Operating Profit
|
2182.04
|
2,050.93
|
6.4
|
9,073.78
|
8,630.37
|
5.1
| ||||||||||
Provision other than Tax
|
1,598.40
|
843.68
|
89.5
|
4,167.92
|
2,554.82
|
63.1
| ||||||||||
Tax Provision
|
-482.52
|
-321.67
|
50.0
|
350.51
|
1,018.84
|
-65.6
| ||||||||||
Net Profit#
|
1,028.85
|
1,518.18
|
-32.2
|
4,480.72
|
5,006.96
|
-10.5
| ||||||||||
# Net Profit for Q4, FY13 is arrived at after netting out Rs 37.31 cr and that of the full year FY13 after netting out Rs 74.63 crore as a part of the deficit Rs 186.58 crore on account of the takeover of The Memon Cooperative Bank Ltd. by the Bank on 18th April, 2011 in line with the approval granted by the RBI.
PROFITABILITY
· Bank’s Operating Profit (gross profit) remained in positive growth zone despite a significant industrial slowdown during FY13. It grew by 6.4% (y-o-y) in Q4, FY13 to Rs 2,182.04 crore and by 5.1% (y-o-y) in the full year FY13 to Rs 9,073.78 crore.
· Its Net Profit for Q4, FY13 stood at Rs 1,028.85 crore against Rs 1,518.18 crore in Q4, FY12 primarily on account of higher provisions. Similarly, its Net Profit for FY13 was at Rs 4,480.72 crore versus Rs 5,006.96 crore in FY12.
INCOME
· Bank’s Total Income registered a growth of 17.3% (y-o-y) and reached the level of Rs 38,827.28 crore in FY13 boosted by 18.6% growth in Interest Income and 6.1% growth in Other (Non-Interest) Income. With interest expenses growing at 23.4% (y-o-y), Bank’s Net Interest Income increased by 9.7% (y-o-y) to Rs 11,315.26 crore.
· A growth in the Bank’s Total Income, Net Interest Income and Other Income during Q4, FY13 too was at 13.8%, 0.6% and 32.7%, respectively, on year-on-year basis.
· A healthy growth of Other Income at 32.7% during Q4, FY13 was on the back of strong treasury gains made possible by steadily declining bond yields and revival in stock markets.
EXPENSES
· Interest Expenses increased by 23.4% (y-o-y) to Rs 23,881.39 crore in the year FY13 on account of healthy growth in retail term deposits and elevated deposit rates. During Q4, FY13 also, Interest Expenses increased by 17.6% to Rs 6,257.58 crore.
· The growth in Staff Expenses was at 11.7% in Q4, FY13 and 15.5% for the full year FY13 – reflecting an increase on y-o-y basis on account of an increase in dearness allowance, provisions against the wage hike and net additions to the Bank’s employee base.
· Yet, Total Expenses increased by 21.6% (y-o-y) to Rs 29,753.50 crore in FY13 and by 16.0% (y-o-y) in Q4, FY13 to Rs 8,080.46 crore, as the Bank’s Operating Expenses kept the modest pace of growth.
PROVISIONS & CONTINGENCIES
· Provisions and Contingencies (excluding tax provisions) for the Bank increased by 63.1% (y-o-y) to Rs 4,167.92 crore in FY13 and by 89.5% (y-o-y) in Q4, FY13 to Rs 1,598.40 crore on account of higher provisions against NPAs and bad debts written off.
· Tax Provisions, however, have declined this year on account of income tax refund due to the tax reversal from the previous years.
BUSINESS EXPANSION
· On a y-o-y basis, Global (Total) Business of the Bank increased by 19.3% to Rs 8,02,069 crore from Rs 6,72,248 crore between end-March 2012 and end-March 2013.
· While Total Deposits increased by 23.1% (y-o-y) to Rs 4,73,883 crore on March 31, 2013, Total Advances rose by 14.2% (y-o-y) to Rs 3,28,186 crore.
· Bank’s Total CASA (Low-cost) Deposits grew by 15.9% (y-o-y) to Rs 1,19,981 crore in FY13 with the Share of Domestic CASA at the level of 30.38%.
· The Bank’s Retail Credit grew by 6.7% (y-o-y) to Rs 38,046 crore by end-March, 2013 and formed 16.6% of total gross domestic credit. While the Bank’s Farm Credit stood at Rs 28,739 crore, its MSME Loan-book stood at Rs 44,974 crore at end-March 2013 reflecting a growth of 30.3% (y-o-y) in FY13.
ASSET QUALITY
· Bank’s dedicated efforts towards recovery and asset up-gradation enabled it to prevent any deterioration in its Gross NPA ratio sequentially despite continued economic stresses.
· Bank’s Gross NPA ratio stood at 2.40% in Q4, FY13 versus 2.41% in Q3, FY13 and its Net NPA ratio stood at 1.28% - one of the lowest in the large state-owned banking segment.
· While the Bank’s Cash Recovery from NPA amounted to Rs 625.57 crore, the Recovery from PWO accounts was Rs 352.37 crore in FY13.
· The Loan Loss Coverage Ratio is also at a relatively higher level of 68.24% as on 31st March, 2013.
IMPORTANT RATIOS
· ROAA at 0.90% for FY13
· ROE at 14.59% for FY13
· NIM at 3.11% in Domestic Operations & 2.66% in Global Operations
· CRAR (Basel II) at 13.30% & Tier 1 Capital at 10.13% as on 31st March, 2013
· Cost-Income Ratio at 39.79% for FY13
· Earnings per Share at Rs 108.84 for FY13
· Book Value Per Share at Rs 729.11 for FY13
DOMESTIC NETWORK
· Bank has pan Indian presence with 4,276 branches and 2,630 ATMs as on 31st March, 2013.
· During the year FY13, the Bank opened 373 new branches in its domestic operations across India and it proposes to open 625 new branches during FY14 under its Branch Expansion Plan.
· In particular, it opened 170 branches in rural operations of which 101 were opened in unbanked rural centres during FY13.
· The Bank has established 2,695 Ultra Small Branches across the country as on 31st March, 2013.
· Bank’s retail and corporate customers enjoy several facilities under its Alternate Delivery Channels. Under Internet banking, the Bank offers various features such as fund transfers to self and third party; RTGS/NEFT, online payment of bills & taxes, custom duty payments, rail-ticket booking, temple donations, other donations, online subscription to IPOs/FPOs through ASBA and institutional fee payment, IMPS (Immediate Payment services thru e-banking), Credit to Loan accounts etc. Bank’s Internet Banking portal is made available on all smart phones/ipads. The SMS alerts for all transactions are also implemented in the Internet Banking Portal.
· Additionally, a view Based e-banking is enabled for all Bank sponsored RRBs.
· During FY14, the Bank plans to enhance its self-service channels substantially with the objective of providing world class hassle free services to its customers. It proposes to add 3,500 additional ATMs and cash dispensers plus “self-service passbook printing kiosks” in 1,500 branches.
· It plans to deploy 100 bunch note acceptors, 50 self-service 24×7 e-lobbies equipped with cash dispensers, cash acceptors, cheque deposit machines, internet banking kiosks, self-service passbook printing kiosks, and hotline to the Bank’s contact centres.
· It also proposes to develop single note acceptors for cash acceptance in smaller centres.
OVERSEAS BUSINESS
· As on 31st Mar, 2013, the Bank had operations in 24 countries with 100 offices. These 100 offices comprise of 60 branches of the Bank, 39 branches of its overseas subsidiaries and one representative office.
· During FY13, the Bank opened 12 new branches in various countries like New Zealand, Uganda, Mauritius, Ghana, Oman, Kampala, Australia, Botswana and Dubai.
· During FY13, the Bank’s Overseas Business contributed 29.4% to the Bank’s Total Business, 24.6% to its Operating Profit and 34.2% to its Core Fee income.
SELECT AWARDS & ACCOLADES
· Bloomberg UTV Financial Leadership Award –Best PSU bank – 07.04.012, Mumbai
· Dun & Bradstreet – Polaris Financial Technology Banking Awards – 24.08.2012, Mumbai
- Best Public Sector bank under the category Global Business Development
- Overall Best Public Sector Bank
· Banking Technology Award-2011 by IBA – 27.08.2012, Mumbai
- Use of Technology in Training & e-learning – Winner
- Best Customer Relationship initiatives – 1st Runner up
- Best use of Business Intelligence – 1st Runner up
- Best use of mobility tech in Banking – 2nd Runner up
- Best Risk management & Security initiatives – 2nd Runner up
· Business India Best Bank Award 2012 – 14.09.2012, Mumbai
· Forbes India Leadership Award – Best CEO Public Sector, 28.09.2012, Mumbai
· CNBC TV18 – ‘India Best Banks and Financial Institutions Award 2012’ – Best Public Sector Bank, 17.10.2012, Mumbai
· Best Large Bank 2012 – Business World November 26th 2012 Issue
· Best Large Bank 2012 – Business Today – KPMG – December 2012
· Best Public Sector Bank Award by State Forum of Bankers Club, Kerala, December 2012, at Ernakulam
· Business Standard Banker of the Year (2011-12)
· FE Best Banks Award 2011-12 for ‘Best PSU Bank’ awarded by Financial Express Group on 20.02.2013 in Mumbai
· The Most Efficient Public Sector Bank by Dalal Street Investment Journal on 23/03/2013
· National Award for 2011-12, conferred for excellence in the field of Khadi & village Industries by Khadi & Village Industries Commission on 3rd April,2013
· “Strategic Communication and Leadership Award” by Asian Confederation of Business and World CSR Congress at Corporate Affairs Award Ceremony, Mumbai on 18/02/2013
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