Bank of Baroda Smooth Sailing through the Rough .ppt

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1、,Bank of Baroda Smooth Sailing through the Rough WatersFinancial Results: Q2 & H1, 2011-12 (FY12)Dr Rupa Rege Nitsure Chief EconomistOctober 31, 2011,Bank of Baroda: Key Strengths,Bank of Baroda is a 103 years old State-owned Bank with modern & contemporary personality, offering banking products and

2、 services to Large industrial, SME, retail & agricultural customers across the country.,Relatively Strong Presence in Progressive States like Gujarat & Maharashtra,Uninterrupted Recordin Profit-making and Dividend Payment,Overseas Business Operations extend across25 countries through 86 Offices,Firs

3、t PSB to receive Corporate Governance Rating (CGR-2),Robust Technology Platform with 100% CBS in Indian Branches,Pioneer in many Customer-Centric Initiatives,Strong Domestic Presence through 3, 492 Branches,Modern & Contemporary Personality,Provides Financial Services to over 41.8 mln Customers Glob

4、ally,A well-accepted &recognised Brand in Indian banking industry,Domestic Branch Network,Banks network of domestic branches as on 30th Sept, 2011 was 3,492 & no. of ATMs were 1,800. During H1, FY12, the Bank opened 128 new branches. In FY12, the Bank plans to open 264 branches in Tier-1 & Tier-2 ce

5、ntres and 305 branches in Tier-3 to Tier-6 centres. Also, 91 branches under the Branch Expansion Plan of FY11 are yet to be opened. Newly opened branches in H1, FY12 are well diversified across U.P & Uttaranchal, Maharashtra & Southern zones Around 34.4% of the Banks network at the end-June, FY12 wa

6、s situated in rural areas.,Robust Technology Platform,As on 30th Sept 2011, the Banks entire domestic, overseas and RRBs i.e., five sponsored RRBs related operations were on the CBS platform. Bank has developed IT facilities for online/offline account opening through Business Correspondents under Fi

7、nancial Inclusion.Banks retail online payment of bills & taxes, rail-ticket booking, temple donations, online subscription to IPOs/FPOs thru ASBA & institutional fee payment. SMS alerts & RTGS/NEFT transactions are also implemented in the Internet Banking Portal. Bank has implemented Internet Bankin

8、g in several of its overseas territories & a Special Fund Mgmt Solution in UAE & New Zealand. 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 custom

9、ers.Banks Mobile Banking (Baroda M-Connect) provides various facilities to its customers like balance-enquiry, mini-statements, linking of multiple accounts, funds transfer, bill payments, ticket booking, shopping, feedback facilities, etc. Anti Money Laundering (AML) has been implemented in India a

10、nd 20 overseas territories.,Robust Technology Platform,Bank has successfully 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. Enterprise

11、-wide General Ledger (EWGL) has been successfully implemented for the Banks domestic and overseas business. 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 pa

12、yments thru ATMs are also facilitated and Mobile ATMs are introduced in Ahmedabad, Pune, Lucknow & New Delhi. Back Office functions have been centralised in the Bank at City Back Offices & five Regional Back Offices ( at Baroda, Jaipur, Lucknow, Bhopal & Coimbtore) to improve the delivery of service

13、s. On a pilot basis, Automated Cheque Processing Centre (Inward & Outward) has been set up in Mumbai. BoB IIT an exclusive IT Training Centre has been set up in Ghandhinagar to educate the Banks staff in all IT related products & services.,Concentration (%): Domestic Branch Network,Pattern of Shareh

14、olding: 30th Sept, 2011,BOB is a Part of the following Indexes BSE 100, BSE 200, BSE 500 & Bankex Nifty Junior, BankNifty, CNX 100, CNX 500 BOBs Share is listed on BSE and NSE in Future and Options segment also.,As on 30th Sept, 2011,Share Capital: Rs 392.81 crore No. of Shares: 391.55 millionNet wo

15、rth: Rs 22,440.25 crore B. V. per share: Rs 573.12 Return on Equity (H1, FY12): 19.60%,Comparative Performance of BoB Stock: Sept10 to Sept11,Indias Macro Health: Sept10 to Sept11,Quick Economic Observations,Economic activity in advanced nations weakened further in Jul-Sept, 2011 on the back of wors

16、ening sovereign debt dynamics in the euro region High commodity prices including those of crude oil, persistently high unemployment Indias fiscal stresses higher market borrowings elevated interest rates crowding out of private investment, etc. Structural imbalances in protein rich food items and th

17、is years poor performance of pulses crop during the kharif season are likely to maintain upward pressure on food inflation.,Banks Business Growth (Y-O-Y): Sept06 to Sept11,Banks Profitability: Sept06 to Sept11,During the last five years, the Banks Half-yearly Net Profit has grown at the robust CAGR

18、of 37.2% .,Banks Asset Quality: Sept06 to Sept11,Banks Business Performance: Sept10 to Sept11,Share of Domestic CASA was at 34.02% in terms of Aggregate Deposits and at 36.23% in terms of Core Deposits as on 30th Sept, 2011.,Banks Business Performance: Sept10 to Sept11,* As of Last Reporting Friday,

19、Banks Business Performance: Sept10 to Sept11,Banks Profits & NII: Jul-Sept, FY11 & FY12,Other Highlights: Q2,FY11 to Q2,FY12,Other Highlights: Q2, FY11 to Q2,FY12,Key Financial Ratios : Q2, FY12 versus Q2, FY11,Return on Average Assets at 1.23% 1.27% in Q2, FY11Earning per Share at Rs 119.12 Rs 103.

20、14 in Q2, FY11Book Value per Share at Rs 573.12 Rs 430.15 in Q2, FY11Return on Equity (ROE) at 20.79% 23.98% in Q2, FY11Capital Adequacy Ratio at 12.73% with Tier I Capital at 8.82%Cost-Income Ratio at 35.57% 38.69% in Q2, FY11Gross NPA ratio at 1.41% - is one of the lowest for large-sized banks in

21、India Net NPA ratio too low at 0.47% NPA Coverage at the healthy level of 81.97% (including the technical write-offs)Incremental Delinquency Ratio contained at 0.47% for H1, FY12; This means 0.94% in annualised terms the best possible level by international standards.,Key Productivity Indicators Q2,

22、 FY12 versus Q2, FY11,Non-Interest Income: Q2, FY11 and Q2, FY12,Non-Interest Income: H1, FY11 and H1, FY12,Provisions & Contingencies: Q2, FY11 and Q2, FY12,Provisions & Contingencies: H1, FY11 and H1, FY12,Banks Treasury Highlights: Q2, FY12,Treasury Income stood at the level of Rs 157.48 crore in

23、 Q2, FY12 Out of this, Trading Gains stood at Rs 10.15 crore in Q2, FY12, as the yield on benchmark G-sec hardened further by 11 bps and Sensex (additionally) lost 12.7% in Q2, FY12. As of Sept 30, 2011, the share of SLR Securities in Total Investment was 81.30%. The Bank had 81.75% of SLR Securitie

24、s in HTM and 17.62% in AFS at end-Sept 2011. The per cent of SLR to NDTL as on 30th Sept., 2011 was 27.11%. While the modified duration of AFS investments is 2.80 years; that of HTM securities is 4.96 years. Total size of Banks Domestic Investment Book as on 30th Sept, 2011 stood at Rs 85043.60 cror

25、e. Total size of Banks Overseas Investment Book as on 30th Sept, 2011 stood at Rs 3,628 crore.,Overseas Business: Q2, FY12,As on 30th Sept, 2011, the “Overseas Business” contributed 27.2% to the Banks Total Business, 20.1% to its Gross Profit and 36.0% to its Core Fee income (i.e. Commission, Exchan

26、ge & Brokerage).While the Cost-Income Ratio for Domestic Operations stood at 39.23% in Q2, FY12, it was more favourable at 16.21% for the Banks Overseas Operations.While the Gross NPA (%) in Domestic Operations stood at 1.70% at end-Sept, 2011, that for Overseas Operations was lower at 0.69%.The Gro

27、ss Profit to Avg. Working Funds (%) for Overseas Operations stood at 1.36% in Q2, FY11 and at 1.58% in Q2, FY12.NIM as % of Interest Earnings Assets in Overseas Operations improved from 1.33% in Q2, FY11 to 1.42% in Q2, FY12.Return on Equity in Overseas Operations was at 19.18% in Q2, FY12,NPA Movem

28、ent (Gross): H1, FY12,Sector-wise Gross NPAs: H1, FY12 versus H1, FY11,Cumulative Position of Restructured Assets (Domestic),During the past 42 months (1 Apr08 to 30 Sept11), the Bank has restructured 77,521 accounts amounting Rs 7,829.17 crore.Within this, the loans worth Rs 1,117.74 crore were res

29、tructured in H1, FY12; Rs 1,597.81 crore were restructured in FY11, Rs 2,455.05 crore in FY10 & Rs 2,658.57 crore in FY09.For the period of 42 months, out of the total amount restructured, Rs 4,546.75 crore (58.1%) belonged to wholesale banking, Rs 1,804.19 crore (23.0%) to SMEs, Rs 589.43 crore (7.

30、5%) to retail and Rs 888.80 crore (11.4%) to agriculture sector.About 73 accounts (of Rs 1 crore & above) restructured on/after 1st Apr, 2008 with aggregate outstanding of Rs 959.11 crore slipped to NPA after restructuring and most of them belonged to the SME segment.Industry-wise break-up shows tha

31、t the Banks 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

32、accounts are restructured looking into the internal strength and the financial viability of such borrowers.,Sectoral Deployment of Credit, End-Sept, 2011,Major Awards & Accolades in H1, 2011-12,Awards for the BankBest Public Sector Bank (PSB) by CNBC-TV18 & MCX Golden Peacock Award for Excellence in

33、 Corporate Governance by Institute of Directors & World Forum for Corporate Governance received in London Dainik Bhaskar India Pride Award for 2011 Most Efficient Bank in Kenya Best Initiatives in Inclusive Banking FIBC Banking Award Dun & Bradstreets Leading PSB in “Global Business Development Cate

34、gory” National Award for Performance under SME BusinessAwards for the Banks CEO (CMD)Outstanding Financial Professional-2010 by CNBC-TV18 & MCX Best Banker Award (T. A. Pai Memorial Award) by Karnataka State Open University Lifetime Achievement Award by Dainik Bhaskar India Pride Awards,Banks BPR Pr

35、oject - Navnirmaan,Project Navnirmaan has altogether 18 activities covering both BPR & Organisational Restructuring, aimed at transforming the Banks branches into a sales & service centres to make possible a sustained sales growth, superior customer experience and alternate channel migration. The mo

36、st important initiatives were Conversion of all metro & urban branches into Baroda Next branches within a timeline 485 branches rolled out so far across Nine zones & 28 regions Creation of automated & leaner Back Offices like: City Back Office (Automated cheque processing introduced in Mumbai on 17

37、Jan, 2011) Regional Back Office Six RBOs at present & four more are being opened coupled with tech changes for faster account opening. Establishment of two Contact or Call Centres Introduction of frontline automation at select branches for customer convenience Creation of an Academy of excellence Or

38、ganisational RestructuringThe initial impact of Baroda Next migration has been found to be rewarding both in terms of increased customer satisfaction and CASA growth. The said impact has been sustained at 110 Baroda Next branches recently evaluated on (a) sales and (b) customer satisfaction.,Banks H

39、R Initiatives,Recruitment Plan for FY12 Probationary Officers 1,200 Campus Recruitment 600 Specialist officers (in various disciplines) 200 Clerks 2,000 Total new Hires Planned for Recruitment in FY12: 4,000Project Udaan: Bank is currently conducting a massive & comprehensive Leadership Development

40、Programme to cover all branch heads of Urban/Metro Branches and AGMs/DGMs in the Bank. This programme will cover almost 1,500 people and develop their leadership effectiveness further. Opening of Baroda-Manipal School of Banking: This is to help in getting trained manpower for the Bank. Project Spar

41、sh: The Bank has initiated this project in consultation with BCG to revamp its existing HR processes, structures and policies and create an integrated HR framework revolving around initiatives like creating a scientific staffing model, manpower planning, succession planning, development and capability building, career management, performance management, etc.,Thank you.,