Operating Profit at Rs 6,892 crore in Apr-Dec, FY13 (up 4.7%, yoy)
Operating Profit at Rs 2,256 crore in Q3, FY13 (dn 13.5%, yoy)
Net Profit at Rs 3,452 crore in Apr-Dec, FY13 (dn 1.1%, yoy)
Net Profit at Rs 1,012 crore in Q3, FY13 (dn 21.6%, yoy)
NII at Rs 8,501 crore in Apr-Dec, FY13 (up 13.1%, yoy)
NII at Rs 2,841 crore in Q3, FY13 (up 7.0%, y-o-y)
Total Business at Rs 7,14,051 crore (up 17.1%, yoy)
Net NPAs at 1.12% as on 31 Dec, 2012
Book Value at Rs 733.78 (up 18.9%, yoy)
Capital Adequacy Ratio (Basel II) at 12.66% & Tier 1 at 9.33%
ROAA at 0.98% in Apr-Dec, FY13 & 0.84% in Q3, FY13
ROE at 15.3% (annualized) in Apr-Dec, FY13
NIM (Domestic) at 3.17% & NIM (Global) at 2.73% in Apr-Dec, FY13
Bank of Baroda has announced its reviewed results for the third quarter of 2012-13 (Q3, FY13)
of its Board of Directors on February 4, 2013.
Results at a Glance
Quarterly Results Results for Nine Months
Q3:FY12
(Rs cr)
Q3:FY13
(Rs cr)
%
Chang
e
Apr-Dec
FY12
(Rs cr)
Apr-Dec
FY13
(Rs cr)
%
Change
Total Income 8,821.32 9,685.51 9.8 24,079.74 28,564.78 18.6
Interest Income 7,671.99 8,844.92 15.3 21,555.20 26,125.08 21.2
Interest Expenses 5,016.48 6004.02 19.7 14,035.59 17,623.81 25.6
Net Interest
Income
2,655.51 2,840.90 7.0 7,519.61 8,501.27 13.1
Other Income 1,149.33 840.59 -26.9 2,524.54 2,439.70 -3.4
Operating
Expenses
1,196.65 1,425.51 19.1 3,464.71 4,049.23 16.9
Staff Expenses 674.03 798.15 18.4 1,966.02 2,310.35 17.5
Total Expenses 6,213.13 7,429.53 19.6 17,500.30 21,673.04 23.8
Operating Profit 2,608.19 2,255.98 -13.5 6,579.44 6,891.74 4.7
Provision for Tax 468.60 202.61 -56.8 1,340.51 833.03 -37.9
Provisions (other
than tax) &
contingencies
836.74 1,029.31 23.0 1,711.14 2,569.52 50.2
Net Profit 1,289.85 1,011.62 -21.6 3,488.78 3,451.87 -1.1
Note: As Bank had taken over the specified Assets & Liabilities of the Memon Co-operative Bank Ltd. on 18
th
April,
2011, it has proportionately charged Rs 12.44 crore to the Profit & Loss A/c during Q3, FY13 as per the approval
granted by the RBI [See Note 4 of the SEBI Statement].
Bank of Baroda Financial Results
Q3, 2012-13 (FY13) and Apr-Dec, FY13
February 4, 20132
Profits
The Bank’s Operating Profit and Net Profit stood at Rs 2,255.98 crore and Rs 1,011.62 crore,
respectively in Q3, FY13 on the back of a faster rise in interest expenses versus interest earnings
(primarily due to elevated inflation & subdued credit demand) and on lower trading gains.
While, Operating Profit for the first nine months of FY13 posted a gain of 4.7% to attain Rs
6,891.74 crore, the Net Profit remained at Rs 3,451.87 crore during Apr-Dec, FY13 almost at the
same level as in the comparable period of previous year.
Income
During Q3, FY13, the Bank’s Interest Earnings increased by 15.3% (y-o-y) to Rs 8,844.92 crore,
whereas Interest Expenses grew by 19.7% to Rs 6,004.02 crore. As a result, the Net Interest
Income (NII) posted a modest growth of 7.0% (y-o-y) to Rs 2,840.90 crore. The Bank’s Other
Income during Q3, FY13 posted a decline of 26.9% (y-o-y) primarily due to the lower trading
gains. However, in sequential terms, trading gains improved for the Bank from Rs 112 crore in
Q2, FY13 to Rs 136 crore in Q3, FY13.
In overall terms, the Bank’s Total Income increased by 9.8% (y-o-y) to Rs 9,685.51 crore in Q3,
FY13.
During the first nine months of FY13, the Bank’s NII, Other Income and Total Income stood at
Rs 8,501.27 crore, Rs 2,439.70 crore and Rs 28,564.78 crore, respectively.
Despite continued macro headwinds and subdued credit demand, the Bank could protect its
Net Interest Margin (NIM) in domestic operations around 3.08% during Q3, FY13 and at 3.17%
during Apr-Dec, FY13.
Expenses
During Q3, FY13, the Bank’s Interest Expended (at Rs 6,004.02 crore) posted a growth of 19.7%
(y-o-y), as interest rates on deposits continued to stay elevated on account of sticky inflationary
pressures. Employee Cost, too increased by 18.4% (y-o-y) to Rs 798.15 crore partly due to the
ad hoc provisions for wage revisions. During Apr-Dec, FY13, the Bank’s Interest Expended,
Employee Cost and Total Expenses stood at Rs 17,623.81 crore (up 25.6%), Rs 2,310.35 crore
(up 17.5%) and Rs 21,673.04 crore (up 23.8%), respectively.
Despite challenging economic environment, the Bank has maintained its Cost-Income Ratio at
the level of 37.35% during Apr-Dec, FY13 – one of the best amongst peers.
Provisions
Keeping up with its prudent practices, the Bank has maintained its Provision Coverage Ratio
at the healthy level of 70.9% during Apr-Dec, FY13. This will act as a cushion against the
stricter regulatory norms, going forward.
The Bank’s Provisions (other than Tax Provisions) increased by 23.0% (y-o-y) in Q3, FY13 to
Rs 1,029.31 crore and by 50.2% (y-o-y) in Apr-Dec, FY13 to Rs 2,569.52 crore.3
Business Expansion
On y-o-y basis, Total (Global) Business of the Bank posted a growth of 17.1% to Rs 7,14,051
crore as at end-Dec, 2012 from Rs 6,09,867 crore as at end-Dec, 2011. While Global Deposits
increased by 18.8% (y-o-y) to Rs 4,14,733 crore at end-Dec, 2012, Global Advances increased by
14.8% to Rs 2,99,318 crore during the first nine months of FY13.
Despite elevated interest rates on retail term deposits, the Bank could protect its Domestic
CASA share (%) around 32.22% as on 31st December, 2012.
The Bank’s Retail Credit increased by 14.0% (y-o-y) and reached Rs 35,392 crore by end-Dec,
2012. The Retail Loan-book formed 17.2% of the Bank’s Gross Domestic Credit. While the
Bank’s Credit to SMEs expanded by 21.7% to Rs 39,083 crore, its Farm Credit was up 10.7% to
Rs 28,716 crore by end-Dec, 2012.
Asset Quality
Gross NPA of the Bank increased to Rs 7,321.45 crore as on Dec 31, 2012 from Rs 5,879.01 crore
as on Sept 30, 2012 primarily due to continued weaknesses in both agriculture and
manufacturing sectors during the quarter. However, as % to gross advances, the Gross NPA
stood at 2.41% as at 31st Dec, 2012 – one of the lowest amongst peers. The ratio of Net NPAs (%)
too was contained at 1.12% as at end-December, 2012. During the first nine months of FY13, the
Bank recovered Rs 222.07 crore from its written off accounts.
Capital Adequacy
The Bank’s Capital Adequacy Ratio stood at 12.66% as at end-Dec, 2012 with the Tier 1 Capital
ratio at 9.33% (without including the first nine months’ profit earned during FY13). Both the
CRAR and Tier 1 ratios will go up by 114 bps, if we add the profits earned during Apr-Dec,
FY13 to the Bank’s Capital.
The Bank did not raise any “Capital” during the first nine months of FY13, given a muted
growth in credit demand and the adequate level of Bank’s Capital Adequacy.
Overseas Business
As on 31st December, 2012, the Bank was present in 24 countries (other than India) with 97
offices. During the first nine months of FY13, the 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 and Australia.
During the period Apr-Dec, FY13, the Bank’s International Business contributed 30.4% to its
Global (Total) Business, 24.4% to its Global Gross Profits and 37.7% to its Global Core Fee
Income defined as “Commission, Exchange & Brokerage.”4
Important Initiatives
During Apr-Dec, 2012, the Bank opened 231 new branches in its domestic operations and 276
new ATMs. With this, the Bank’s domestic branch network has reached the level of 4,134 and
its ATMs have increased to 2,288.
Bank has been hiring people in a focused fashion year on year to cater to the challenges of
superannuation and sustained business growth led by branch expansion. During the first nine
months of FY13, the Bank has hired 2,700 new employees in various cadres. The Bank has
undertaken massive skills up-gradation programmes for its existing employees and also a few
structured programmes for its new employees to train them in various specialised banking
skills pertaining to credit, forex, marketing, etc. The Bank has made further progress in its
Business Process Re-engineering Project that is underway for the last couple of years.
In the domain of Financial Inclusion, around 4,535 villages having population more than 1,000
were allotted to our Bank in two phases i.e. 2,839 in the first phase and 1,696 in the second
phase. Our Bank has achieved 100.0% coverage of all 2,839 villages of the first phase well before
March 2012 and it is in preparedness to cover new 1,696 villages by March 2013. Our Bank has
also established 2,734 Ultra Small Branches across the country as on 31st December, 2012.
Awards and Accolades
The Bank has received several prestigious awards this year so far for its consistent and
qualitatively superior performance under various business heads. To name a few, it received
the Bloomberg UTV Financial Leadership Award – Best PSU Bank; Best CIO Award of BFSI
Sector from Institute of Public Enterprises, 2012; Dun & Bradstreet – Polaris Financial
Technology Banking Awards – Best PSB under the Global Business development & Overall Best
PSB; Banking Technology Award- 2011 by IBA for various categories such as Technology in
Training & e-Learning, Best CRM, Best Business Intelligence, Best Mobile Technology & Best
Risk Management & Security Initiatives; Business India Best Bank Award 2012; Forbes India
Leadership Award- Best CEO of Public Sector; CNBC TV18 “India Best Bank & Financial
Institutions Award – Best PSB, etc.
Mumbai S. S. Mundra
February 4, 2013 Chairman & Managing Director
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