Tuesday, June 6, 2023


Shri. S S Mundra, Chairman and Managing Director of Bank of Baroda ( Centre ), Shri P Srinivas (Left) and Shri Ranjan Dhawan (Right), Executive Directors of the Bank, during the Media Meet on Banks Quarterly Result Declaration for Quarter ended June 30th, 2013.

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Net Profit at Rs 1,168 crore in Q1, FY14- up 2.6% y-o-y & up 13.5% sequentiall

Operating Profit at Rs 2,452 crore in Q1, FY14 – up 8.8%, y-o-y & up 12.4% sequentiall

Total Business at Rs 7,88,340 crore at end-June, 2013 (up 17.9%, y-o-y)

NIM (Domestic) at 2.84% & NIM (Global) at 2.41%

Gross NPA at 2.99% & Net NPA at 1.69%

Provision Coverage Ratio at 63.6%

ROAA (annualized) at 0.85%

ROE (annualized) at 14.33%CRAR at 12.70% with Tier 1 at 9.68%


The Bank could keep in the positive growth zone both its Operating Profit (up 8.8%, y-o-y and up 13.5% sequentially) and Net Profit (up 2.6%, y-o-y and 12.4% sequentially) even as the economic environment worsened during Q1, FY14. During the first quarter of 2013-14, the Bank’s Operating Profit stood at Rs 2,451.62 crore, while Net Profit at Rs 1,167.87 crore. It may be noted that the Bank has prudently made full provisions on its existing restructured accounts during Q1, FY14 itself, even though the RBI guidelines permit to distribute this burden over four quarters of FY14, whose impact works out to Rs 92 crore.


The Bank’s Total Income posted a healthy growth of almost 15.0% (y-o-y) and attained the level of Rs 10,717.49 crore in Q1, FY14. Within this, Interest Income grew by 10.9% (y-o-y) to Rs 9,486.94 crore, whereas Other Income grew by 59.7% to Rs 1,230.55 crore primarily due to the excellent performance put out by the Bank’s Treasury Division. However, stronger growth of interest expenses kept the growth in Net Interest Income (NII) muted at 3.3%, which attained the level of Rs 2,889.10 crore in Q1, FY13.


The Bank’s Total Expenses grew by 16.8% (y-o-y) to Rs 8,265.87 crore in Q1, FY14 primarily on the back of a strong growth of 33.2% (y-o-y) in Staff Expenses to Rs 1,013.98 crore and a growth of 14.55% (y-o-y) in Interest Expenses to Rs 6,597.84 crore. A sharp increase in Staff Expenses was on account of higher provisions against AS-15 requirements and a wage hike. Other Operating Expenses (other than Staff Costs) grew at the pace of 17.9% (y-o-y) to Rs 654.05 crore in Q1, FY14 – in line with the past trend.


Provisions and Contingencies (excluding tax provisions) made by the Bank stood at Rs 1,017.86 crore in Q1, FY14 versus Rs 893.80 crore in Q1, FY13. An increase in these provisions was primarily on account of higher provisions against standard advances in line with the RBI’s revised restructuring guidelines. Provisions for Taxes too increased from Rs 208.08 crore to Rs 250.34 crore reflecting a y-o-y growth of 20.3%.


The Bank’s Total Business expanded by 17.9% (y-o-y) to Rs 7,88,340 crore in Q1, FY14. Out of this, Total Deposits increased by 22.0% (y-o-y) to Rs 4,67,026 crore, whereas Total Advances increased by 12.4% (y-o-y) to Rs 3,21,314 crore in Q1, FY14. Domestic CASA Deposits share stood at the decent levels of 31.2% in terms of Total Deposits and 33.4% in terms of Core Deposits despite continued elevated interest rates on term-deposits. The Bank’s Retail Credit increased by 16.0% (y-o-y) to Rs 38,191 crore and formed 17.3% of the Gross Domestic Credit of the Bank as on 30th June, 2013. While the Bank’s Farm Credit marginally declined by 2.3% (y-o-y) to Rs 27,142  crore, its Credit to MSME sector grew by 37.04% (y-o-y) to Rs 47,068 crore.  A decline in Farm Credit was mainly due to the continued effect of re-classification of priority sectors by the RBI last year.


Gross NPA of the Bank increased to Rs 9,762.55 crore as on June 30, 2013 from Rs 7,982.58 crore as on March 31, 2013 driven by continued weaknesses in economic activity. The Gross NPA ratio stood at 2.99% as on 30th June, 2013. The Bank’s Net NPA ratio stood at 1.69% in Q1, FY14. In relative terms, the Bank’s Provision Coverage Ratio was better at 63.6% as on 30th June, 2013.


The Bank’s Capital Adequacy Ratio (Basel II) was at 12.70% as on 30th June, 2013. Out of 12.70%, the share of Tier 1 capital was 9.68% and that of Tier 2 Capital was 3.02%.


The Bank’s Net Worth expanded by 16.9% (y-o-y) to Rs 32,598 crore as on 30th June, 2013.

In annualized terms, the Bank’s Return on Equity (%) stood at 14.33%.

Its Return on Average Assets (%) stood at 0.85%.

The Bank’s Book Value per Share improved to Rs 773.83 as on 30th June, 2013 from Rs 678.37 as on 30th June, 2012 (up 14.1% y-o-y).


The Bank’s Overseas Business continued to remain a major support to its Overall Business. It posted a y-o-y growth of 27.7% in Q1, FY14 out of which around 8.0% was contributed by the currency depreciation. During Q1, FY14, the Overseas Operations contributed 31.5% to the Bank’s Global Business, 22.2% to its Gross Profit and 33.3% to its Core Fee Income. The Gross NPA (%) in overseas business marginally increased from 1.37% in Q4, FY13 to 1.56% in Q1, FY14.

As on 30th June, 2013 the Bank’s Overseas Operations were spread across 24 countries through 100 offices. During FY14, the Bank proposes to open five offices in its own overseas operations in Abu Dhabi, Shaijah and U.K. and four offices in its overseas subsidiaries.


The Bank has shed Preferential High-Cost Deposits to the extent of Rs 22,363 crore in Q1, FY14 to control the pressure on cost of funds.

To give a boost to Retail/MSME businesses, it brought down the effective cost of borrowing not just for the new borrowers but also for the existing borrowers.

It significantly strengthened its Credit Monitoring process and the system for “Early Detection of Stress Accounts” to enable it to take suitable follow-up actions.

Furthermore, it also strengthened its Loan Factory set up with marketing people. Its Central Sales Offices (CSOs) have been streamlined at the Zonal (or State) level to help create a “Sales and Service Culture” in the Bank.

It opened 13 new branches in its Domestic Operations and set up 370 new ATMs and 109 new POS machines (Point of Sale Machines) in Q1, FY14. The Bank has set for itself the target of 6,000 ATMs from the current level of 3,000 ATMs and 25,000 POS machines from the current level of 5,622 POS.

During Q1, FY14, its HR initiative of Project Sparsh was taken forward for Talent Identification and Succession Planning.

The Bank converted 11 more Metro and Urban branches into Baroda Next branches during Q1, FY14