BOB Profile-Sept05

1
Presentation to Media Performance Highlights (
Q4 2008-09) by Dr Rupa Rege Nitsure Chief
Economist April 27, 2009
2
Bank of Baroda Key Strengths

• BoB is a leading 100 years old PSB in India with
  modern and contemporary personality, offering
  banking products and services to industrial and
  commercial, retail and agricultural customers
  across the country.

Overseas Business Operations extend across 25
countries through 74 branches/ Offices
Modern Contemporary Personality

• Uninterrupted Record
• in Profit-making and
• Dividend Payment

Strong Domestic Presence through 2,926 branches

• Pioneer in many
• Customer-Centric
• Initiatives

Provides Financial Services to over 36.5
million customers globally

• First PSB to receive
• Corporate Governance
• Rating (CAGR-2)

• Steady Movement towards
• International best practices
• Preparing financials under
• US GAAP

• Rapid Significant
• Technology Progression
• Since FY06

A well-accepted recognised Brand in Indian
banking industry
3
Domestic Branch Network at End-Mar, 2009

• The Bank has a network of 2,926 domestic branches
  as on 31st Mar, 2009
• On net basis, the Bank has added 73 new branches
  to its domestic network by merging nine branches
  in FY09.
• About 59.80 of the domestic branches are in
  rural/semi-urban areas.
• The Bank proposes to open 168 new branches in
  FY10 primarily in Southern States, Gujarat,
  Greater Mumbai UP Uttaranchal.
• Highest no. of new branches will be in Semi-Urban
  followed by Urban, Metro Rural areas.

4
Robust Technology Platform

• By 31 Mar, 2009, Bank completed CBS Rollout in
  1,922 domestic branches 66 overseas offices.
  All CBS branches are enabled for inter bank
  remittances through RTGS and NEFT.
• Bank rolled out Internet Banking in India seven
  Overseas Territories. Payment of all taxes,
  utility bills online booking of railway tickets
  has been enabled.
• Banks ATM network increased to 1,179 with two
  Bio-metric ATMs in rural areas.
• Bank launched Phone Banking Service country-wide
  on 19th March 2009.
• Corporate Cash Mgmt system, Payment Messaging
  Solution, Implementation of enterprise-wide GL,
  Online HRM System, Implementation of Global
  Treasury are some of the new technology
  initiatives taken during FY09.

5
Concentration () Domestic Branch Network
6
Pattern of Shareholding 31st Mar, 2009
As on 31st Mar, 2009

• Share Capital Rs 365.53 crore
• No. of Shares 364.27 million
• Net worth Rs 11,387.19 crore
• B. V. per share Rs 312.61
• Return on Equity (annualised) 19.56

• BOB is a Part of the following Indexes
• BSE 100, BSE 200 and BSE 500
• Nifty Junior and Bankex.
• BOBs Share is listed on BSE and NSE in Future
  and Options segment also.

7
Business Growth FY05 to FY09
8
Profits FY05 to FY09
Bet. FY05 FY08, Banks Net Profit has grown at
the CAGR of 26.9.
9
Asset Quality FY03 to FY09
Gross NPAs ()
Net NPAs ()
10
Performance Highlights

• Banks Achievements against the Guidance for FY09
• (1) Business Growth with a Thrust on Asset
  Quality
• Bank has expanded its loan-book at 34.9 (y-o-y)
  yet managed to reduce its Gross NPA from Rs
  1,981.38 crore at end-Mar08 to Rs 1,842.92 crore
  at end-Mar09. Even its Net NPA declined in
  absolute terms.
• Banks Advances Portfolio has been increasing on
  a sustained basis under Investment Grade with
  High safety.
• (2) Bank to exercise control over Cost of
  Deposits to protect the NIMs.
• Bank could protect its Domestic CASA share around
  34.87 by achieving a CASA growth of 20.0 in
  FY09.
• Banks interest expenses growth in Q4 FY09 was
  controlled at 15.87, as BPLR was reduced twice
  in tandem with Monetary Policy Signals.

11
Performance Highlights

• Banks Achievements against the Guidance for FY09
  
• Share of Bulk (including CDs) in Total Domestic
  Deposits was reduced from 24.0 in FY08 to 16.9
  in FY09.
• (3) Focus on High-yielding Advances
• Average Yield on Domestic Advances improved from
  10.46 in FY08 to 10.86 FY09.
• (4) Thrust on Protecting the NIM
• Banks Global Domestic NIM ( of
  interest-earning assets) improved from 2.90
  3.06 in FY08 respectively to 2.91 3.21 in
  FY09.
• (5) Special Emphasis on Fee-based Income
• Banks Core Fee-Based Income expanded at the
  unprecedented pace of 39.5 (y-o-y) to Rs 1,223
  crore in FY09

12
Business Performance FY09 over FY08

• Global Business up 30.0(Y-o-Y) to Rs 3,36,383
  crore at end-Mar, 2009
• Domestic Business up 26.0(Y-o-Y) to Rs 2,60,692
  crore
• Overseas Business up 46.3(Y-o-Y) to Rs75,691
  crore
• Global Deposits up 26.6(Y-o-Y) to Rs 1,92,397
  crore
• Domestic Deposits up 23.6(Y-o-Y) to Rs 1,51,409
  crore
• Overseas Deposits up 38.7(Y-o-Y) to Rs 40,988
  crore
• Domestic CASA share 34.87 at end-March 2009
• Global Advances up 34.9 (Y-o-Y) to Rs 1,43,986
  crore
• Domestic Advances up 29.3 to Rs 1,09,283 crore
• Overseas Advances up 56.3 to Rs 34,703 crore

13
Business Performance FY09 over FY08

• Retail Credit up 16.3(Y-o-Y) to Rs 19,651 crore
  at end-Mar 2009
• Retail Credit now forms 17.9 of Gross Domestic
  Credit
• Home Loan Book up 13.5(Y-o-Y) to Rs 8,265 crore
• SME Credit up 24.2 (Y-o-Y) to Rs 14,662 crore
• Farm Credit up 27.9 (Y-o-Y) to Rs 16,964 crore
• Priority Sector Credit up 23.9(Y-o-Y) to Rs
  39,239 crore
• Banks credit to weaker sections was up 35.1
  (Y-o-Y) to Rs 8,156 crore.
• Banks micro-credit to SHGs was up 43.5 (Y-o-Y)
  to Rs 606 crore.

14
Key Financial Ratios Apr-Mar, 2008-09

• Return on Average Assets (Return on Average
  Working Funds) at 1.15 0.93 at end-Mar, 2008
• Earning per Share (annualised) at Rs 61.14 Rs
  39.41 in FY08
• Book Value per Share at Rs 312.61 Rs 261.54 in
  FY08
• Return on Equity (ROE) at 19.56 15.07 in FY08
• Capital Adequacy Ratio( Basel II) at 14.05
• Cost-Income Ratio declined from 50.89 to
  45.38(Y-o-Y).
• Gross NPA ratio declined to 1.27 from 1.84
  (Y-o-Y).
• Net NPA ratio declined to 0.31 from
  0.47(Y-o-Y).
• NPA Coverage improved to 75.52 on prudent
  provisioning

15
Operating Profits FY08 and FY09
55.2
82.6

• NII grew at 31.0 (Y-o-Y) in FY09 at 43.0
  (Y-o-Y) in Q4, FY09.

16
Net Profits FY08 and FY09
55.2
172.3
17
Other Highlights Apr-Mar, 2008-09

• Net Interest Margin (as of interest-bearing
  assets) in Global Operations at 2.91 and in
  Domestic Operations at 3.21 in 2008-09.
• Cost of Deposits in Global Operations increased
  from 5.69 to 5.71
• Cost of Deposits in Domestic Operations increased
  from 5.91 to 6.30
• Cost of Deposits in Overseas Operations decreased
  from 4.76 to 3.29
• Yield on Advances in Global Operations declined
  from 9.53 to 9.50
• Yield on Advances in Domestic Operations improved
  from 10.46 to 10.86
• Yield on Advances in Overseas Operations declined
  sharply from 6.17 to 5.19.
• Yield on Investments in Global Operations
  improved from 6.55 to 7.05.
• Yield on Investments in Domestic Operations
  improved from 6.53 to 7.18 in Overseas
  Operations declined from 6.48 to 5.68

18
Other Highlights Apr-Mar, 2008-09

• Treasury Income (Profit on Sale of Investments)
  increased by 69.2 (Y-o-Y) to Rs 900 crore.
• Fee-based Income (Commission, Exchange, Brokerage
  Incidental Charges) improved by a strong 39.5
  (Y-o-Y) to Rs 1,223 crore.
• Cash Recovery (NPA PWO) during FY09 stood at
  healthy Rs 830 crore despite severe industrial
  slowdown.
• Profit from Exchange Transactions grew by a
  robust 33.3 (Y-o-Y) to Rs 372 crore.

19
Macro Scenario

• Economic Scenario has worsened with sustained
  contraction in IIP exports, widening of trade
  deficit problems in fiscal consolidation
• H1, FY10 will be relatively tougher than H2, FY10
• RBI expects GDP growth at 6.5 - 6.7 in FY09 and
  6.0 in FY10
• RBI has pegged the M3 growth at 17.0, Deposit
  mobilisation at 18.0 and Credit growth at 20.0
  for FY10
• Management of large government borrowings
  programme will be a critical challenge in FY10
  and may militate against low interest rate
  environment.
• On the positive side, some early signs of
  recovery are seen in auto, cement, steel sectors
  railway freight has been increasing business
  confidence surveys are indicating a reversal of
  sentiment
• Agricultural outlook has turned optimistic
  augurs well for rural consumption demand SB
  mobilisation
• EMEs still better destination for FII/FDI
  inflows.

20
Banks Guidance for 2009-10

• To continue with our thrust on Growth with
  Quality by focusing on CASA, by further reducing
  the dependence on Bulk Business by protecting
  the Asset Quality with a firm control on the
  process of Credit Origination
• To achieve the Business Growth of 23.0 to 25.0
  in FY10.
• To protect the ROAA above 1.0 and ROE above
  17.0 (already achieved in FY09) for FY10
• To sustain the Cost-Income Ratio at 45.0 in FY10
  make efforts to lower it further
• To maintain the growth of at least 25.0-plus in
  core Fee-Based Income in FY10
• To continue with our efforts to bring down Gross
  Net NPA further despite challenging times
  ahead

21

• Thank you.