Results at a Glance Q % Change

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Margaret Fitzgerald
5 years ago
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1 Bank of Baroda Financial Results FY (FY14) and Q4: FY14 May 13, 2014 Global Business touched Rs 9.66 lakh crore level (up 20.4%, yoy) Operating Profit for Q4, FY14 at Rs 2,580 crore (up 18.2%, yoy) Net Profit for Q4, FY14 at Rs 1,157 crore (up 12.5%, yoy) Operating Profit for FY14 at Rs 9,353 crore (up 3.1%, yoy) Net Profit for FY14 at Rs 4,541 crore (up 1.3%, yoy) Sequential Improvement in Asset Quality with GNPA at 2.94% & NNPA at 1.52% ROAA at 0.75% in FY14 CRAR (Basel II) at 12.87%, with Tier 1 at 9.54% CRAR (Basel III) at 12.28%, with Tier 1 at 9.28% and Core Tier 1 at 8.95% in FY14 NII up 11.0% to Rs 3,124 cr and Core Fees up 15.0% to Rs 602 cr in Q4, FY14 Bank of Baroda has announced its audited results for the fourth quarter of (or Q4, FY14) and for the full year or FY14 (April-March), following the approval of its Board of Directors on May 13, Results at a Glance Results for Q4, (January-March) Results for (April-March) Q Q % Change Apr-Mar Apr-Mar % Change Total Income 11, , , , Interest Income 10, , , , Other Income 1, , , , Total Expenses 9, , , , Interest Expenses 7, , , , Net Interest Income 3, , , , Staff Expenses 1, , , , Operating Expenses 1, , , , Operating Profit 2, , , , Provision other than Tax 1, , , , Tax Provision Net Profit # 1, , , , # Net Profit for Q4, FY14 is arrived at after netting out Rs crore and that of the full year FY14 after netting out Rs crore as a part of the deficit Rs crore on account of the takeover of The Memon Cooperative Bank Ltd. by the Bank on 18 th April, 2011 in line with the approval granted by the RBI vide its letter dated 4 th March,

2 PROFITABILITY The Bank s Operating Profit (gross profit) posted healthy growth of 18.2% (yoy) to Rs 2, crore in Q4, FY14 supported by a well-balanced growth in net interest income and other income and controlled operating expenses. Even for the full year FY14, the Bank s Operating Profit was at Rs 9, crore (up 3.1%, yoy) despite sluggish economic growth. Its Net Profit for Q4, FY14 stood at Rs 1, crore, up 12.5% (yoy) reflecting the Bank s resilient earnings profile. Its Net Profit for FY14 was at Rs 4, crore, up 1.3% (yoy). INCOME Bank s Total Income registered a growth of 13.2% (yoy) and reached the level of Rs 11, crore in Q4, FY14 boosted by 13.4% growth in Interest Income and 11.4% growth in Other (Non-Interest) Income. The Other Income growth in Q4, FY14 was supported by a robust growth in recoveries from written off accounts and core fees. Growth in the Bank s Total Income, Net Interest Income and Other Income during FY14 was at 11.8%, 5.7% and 22.9%, respectively, on year-on-year basis. A healthy growth of Other Income at 22.9% during FY14 was on the back of strong treasury gains (up 25.6%, yoy) and rich recoveries from the written off accounts (up 59.9%, yoy) EXPENSES Interest Expenses increased by a relatively lower 14.5% (yoy) to Rs 7, crore in Q4, FY14 as compared to the previous year s growth of 23.4% on account of prudent management of liabilities. Within domestic deposits, the Share of CASA improved to 31.76% in FY14 from 30.38% in FY13. For the full year FY14 also, the growth in Interest Expenses stayed controlled at 13.0%. Staff Expenses grew by 20.0% (yoy) in FY14 to Rs 4, crore on account of DA adjustment, provisions against wage hike and pension liabilities, etc., and increase in staff strength. Unlike the previous year, the burden of Staff Expenses was uniformly distributed during FY14 so as to avoid lumpiness in the last quarter. Hence, there was a decline of 8.7% (yoy) in Staff Expenses to Rs 1, crore in Q4, FY14. Total Expenses increased by 14.4% (yoy) to Rs 34, crore in FY14 and by 11.8% (yoy) in Q4, FY14 to Rs 9, crore - well in line with the Bank s guidance at the beginning of the year FY14. PROVISIONS & CONTINGENCIES Provisions and Contingencies (excluding tax provisions) for the Bank declined by 9.0% (yoy) to Rs 3, crore in FY14 and by 27.9% (yoy) in Q4, FY14 to Rs 1, crore on account of lower incidence of fresh slippages and lesser technical write-offs. 2

3 Tax Provisions, however, have increased this year due to some changes in the income tax law and the RBI s directive to create a deferred tax liability out of the current year s profit on Special Reserve. BUSINESS EXPANSION On a y-o-y basis, Global (Total) Business of the Bank increased by 20.4% (yoy) to Rs 9,65,900 crore from Rs 8,02,069 crore between end-march 2013 and end-march While Total Deposits increased by 20.1% (yoy) to Rs 5,68,894 crore on March 31, 2014, Total Advances rose by 21.0% (yoy) to Rs 3,97,006 crore. Bank s Total CASA (Low-cost) Deposits grew by 22.1% (yoy) to Rs 1,46,488 crore in FY14 with the Share of Domestic CASA showing improvement to 31.76% at end-mar, 2014 from 30.38% at end-mar, The Bank s Retail Credit grew by 21.0% (yoy) to Rs 46, crore by end-march, 2014 and formed 16.6% of total gross domestic credit. While the Bank s Farm Credit stood at Rs 28,431.9 crore (up 2.8%, yoy), its MSME Loan-book stood at Rs 56,634 crore at end-march 2014 reflecting a growth of 21.2% (yoy) in FY14. ASSET QUALITY Bank s focused efforts towards recovery and asset up-gradation enabled it to improve its asset quality position sequentially despite worsening of macroeconomic situation. Bank s Gross NPA ratio stood at 2.94% in Q4, FY14 versus 3.32% in Q3, FY14 and its Net NPA ratio stood at 1.52% in Q4, FY14 versus 1.88% in Q3, FY14. While the Bank s Cash Recovery from NPA amounted to Rs 1, crore, the Recovery from PWO accounts was Rs crore in FY14. The Loan Loss Coverage Ratio was further strengthened to 65.45% on 31 st March, 2014 versus 62.22% on 31 st December, IMPORTANT RATIOS ROAA at 0.75% for FY14 ROE at 13.00% for FY14 NIM at 2.87% in Domestic Operations & 2.36% in Global Operations CRAR (Basel II) at 12.87%, with Tier 1 at 9.54% CRAR (Basel III) at 12.28%, Tier 1 at 9.28%, Core Tier 1 at 8.95% as on 31 st Mar, 2014 Cost-Income Ratio at 43.44% for FY14 Earnings per Share at Rs for FY14 Book Value Per Share at Rs for FY14 3

4 DOMESTIC NETWORK Bank has pan Indian presence with 4,874 branches and 6,254 ATMs as on 31 st March, During the year FY14, the Bank opened 601 new branches and merged three branches in its domestic operations across India and it proposes to open 400 new branches during FY15 under its Branch Expansion Plan. In particular, it opened 341 branches in rural operations of which 279 were opened in unbanked rural centres during FY14. The Bank had established 2,584 Ultra Small Branches across the country before 31 st March, Also, the Bank installed 3,624 new ATMs, opened 45 e-lobbies and provided a number of Bunch Note Acceptors, Self-service Pass book Printers, etc. to its branches during FY14. It also provided Note Counting Machines to almost all its branches and strengthened the structure of Retail and SME Loan Factories its innovative business model - in the country. At end-march, 2014 the Bank possessed a rich set up of 45 Retail Loan Factories and 52 SME Loan Factories across India. OVERSEAS BUSINESS As on 31 st Mar, 2014, the Bank had operations in 24 countries with 102 offices. These 102 offices comprise of 60 branches of the Bank, 41 branches of its overseas subsidiaries and one representative office. During FY14, the Bank opened three new branches in its subsidiaries in Tanzania and Uganda and one Electronic Banking Service Unit (EBSU) in UAE and closed one OBU (Offshore Banking Unit) in Mumbai. During FY14, the Bank s Overseas Business contributed 32.6% to the Bank s Total Business, 24.2% to its Operating Profit and 30.5% to its Core Fee income. SELECT AWARDS & ACCOLADES Best Public Sector Bank under the category Global Business Development by Dun & Bradstreet Polaris Financial Technology Banking Awards Banking Technology Excellence Award 2013 among PSBs by IDRBT. Bank was awarded 1 st Rank in the Public Sector Bank Category in Financial Express - Ernst & Young Best Banks Survey published in The Financial Express Magazine, March 2014 issue. MSME Banking Excellence Award-2013 as the Best Bank in MSME by the Chamber of Indian Micro Small and Medium Enterprises. 4

5 The Sunday Standard Best Banker s Award Best Banker-HR constituted by The New Indian Express Group. ASSOCHAM 9 th Annual Banking Summit cum-social Banking Award 2013-Winner in Public Sector Banks Category in the field of Social Banking. Excellence in Home Loan Banking Award by My FM Stars of the Industry. The Global Excellence and Leadership Award in the category of 50 most talented CSR Professionals of India by the World CSR Congress. May 13, 2014 Mumbai S. S. Mundra Chairman & Managing Director 5

Results at a Glance Q % Change

Results at a Glance Q % Change Bank of Baroda Financial Results FY 2014-15 (FY15) and Q4: FY15 May 11, 2015 Global Business touched Rs 10.46 lakh crore level (up 8.25%, yoy) Operating Profit for Q4, FY15 at Rs 2693.52 crore (up 4.42%,