Bank of Baroda:

Consistently Sound Performance Achieved through

Best Practices of People, Processes & Technology

Performance Analysis: Q2 & H1, 2012-13 (FY13)

Dr Rupa Rege Nitsure
Chief Economist
October 22, 2012
 Bank of Baroda: Key strengths
Bank of Baroda is a 104 years old State-owned Bank with modern & contemporary personality,
offering banking products and services to Large Industrial, SME, Retail & Agricultural customers
across India and 24 other countries.

Uninterrupted Record Overseas Business Modern & Contemporary

in Profit-making and Operations extend across Personality
Dividend Payment 24 countries
through 96 Offices
Strong Domestic
Pioneer in many Presence through
Customer-Centric 4,021 Branches
Initiatives
Provides Financial
Services to over
First PSB to receive 47 mln Customers
Corporate Governance Globally
Rating (CGR-2)
Relatively Strong Presence
Robust Technology
A well-accepted & in Progressive States like
Gujarat & Maharashtra Platform with 100%
recognised Brand in
Indian banking industry CBS in Indian Branches
 Results at a glance
Q2, FY13 H1, FY13

•Net Profit up 11.6%(y-o-y) to Rs 1,301.39 •Net Profit up 11.0%(y-o-y) to Rs 2,440.25

crore crore
•Operating Profit up 11.3% (y-o-y) to Rs •Operating Profit up 16.7% (y-o-y) to Rs
2,382.58 crore 4,635.76 crore
•Net Interest Income up 11.5% (y-o-y) to Rs •Net Interest Income up 16.4% (y-o-y) to
2,862.30 crore Rs 5,660.37 crore
•NIM at 2.71% in Global & at 3.23% in •NIM at 2.73% in Global & at 3.22% in
Domestic operations Domestic operations
•ROAA (annualized) at 1.12% •ROAA (annualized) at 1.06%

•Total Business up 23.2% (y-o-y) to Rs 7,00,330 crore by end-Sept, 2012

•Total Advances up 22.2% (y-o-y) to Rs 2,92,181 crore by end-Sept, 2012
•Total Deposits up 24.0% (y-o-y) to Rs 4,08,150 crore by end-Sept, 2012
•Net NPAs (%) at 0.82% as on 30th Sept, 2012
•Provision Coverage Ratio at the healthy level of 75.72% as on 30th Sept, 2012
•CRAR at 12.91% with Tier 1 at 9.57% as on 30th Sept, 2012
•Cost-Income ratio at 36.48% in H1, FY13.
 Sustained sound performance from FY08

2007-08 2008-09 2009-10 2010-11 2011-12 H1, 2012-13

(Annual) (Annual) (Annual) (Annual) (Annual) (Half-Yearly)
Assets
1,83,479 2,26,672 2,78,317 3,58,397 4,47,321 4,75,827
(Rs crore)
Net Profit
1,436 2,227 3,058 4,242 5,007 2,440.25
(Rs crore)

Tier 1 Capital
8,496 11,070 14,357 20,974 27,498 26,712
(Rs crore)

Return on
15.07% 19.48% 22.19% 21.48% 19.04% 16.90%
Equity (%)

Cost-Income
50.89% 45.38% 43.57% 39.87% 37.55% 36.48%
Ratio (%)

NPL (Net, %) 0.47% 0.31% 0.34% 0.35% 0.54% 0.82%

•In four & a half yrs, Bank’s assets have grown 2.6 times.
•Bank’s half-yearly net profit in H1, FY13 is bigger than its full year’s profit in FY09.
Impressive CAGR for key parameters (FY08 thru’ FY12)

Parameter CAGR
(FY08 thru’FY12)
Assets 24.96%
Gross Profit 31.02%
Net Profit 36.65%
Net Worth 28.90%
Total Capital 26.84%
Tier-1 Capital 34.13%
 Sustained expansion of global branch network

4500
4078
3959 4021
4000 3904

3418
3500 3364
3100 3148
2974
3000 2853 2899 2926

2500

2000

1500

1000

500

0
FY'08 FY'09 FY'10 FY'11 FY'12 H1, FY13

Domestic Brs Global Brs

 Features of domestic branch network
•In a year’s time (Sept’11 to Sept’12), the Bank added 529 brs to its domestic network comprising
120 in metro; 76 in urban; 205 in semi-urban & 128 in rural areas.
•During H1, FY13, the Bank opened 118 new brs (11 in metro, 10 in urban, 38 in semi-urban and
59 in rural areas) and merged one rural br in June, 2012 & converted that into a satellite unit.
•In the remaining part of FY13, the Bank plans to open 475 new brs with 241 brs in Tier-I & Tier-II
centres & 234 brs in Tier-III to Tier-VI centres.
•Newly opened branches in H1, FY13 majorly belong to Eastern UP, Rajasthan, Maharashtra, Gujarat
& Eastern states.
•Around 33.03% of the Bank’s network at the end-Sept, FY13 was situated in rural areas.
•Moreover, the Bank’s ATM tally improved from 1,800 at end-Sept, 2011 to 2,230 at end-June,
2012.

Regional Break-up of
Domestic Branches as on 30th Sept, 2012
Metro Urban Semi-Urban Rural

885 725 1,083 1,328

 Deepening of overseas business ..
No. branches, offices, countries
120

100 96
93
89
85 86 86 86
81 81 82
76 78 78
80 74 74 74
72 72

60 55 55 57
54 54 54 54
50 50 51
47 46 48 48 48 48 48 48

40

25 25 25 25 25 25 25 25 26 26 25 25 25 25 24 24 24 24
20

Overseas Branches Number of Overseas Offices Number of Countries where present

 Other strengths: Robust technology platform

•Bank’s entire domestic, overseas and RRBs Framework is CBS-compliant

•All domestic branches are migrated to MPLS (Multi-Protocol Label Switching) network. New branches
are directly opened in MPLS network
•Bank has IT facilities for online/offline account opening through Business Correspondents under
Financial Inclusion.
•Bank’s retail e-banking portal has been made more use-friendly through enhancement of its look &
feel for customers.
•Bank has implemented Internet Banking in 12 of its overseas territories , notably Oman, Tanzania,
Uganda, Kenya, Mauritius, Seychelles, Botswana, New Zealand, UAE, Fiji, UK & Ghana.
•For provision of Safe Online Banking & to protect customers from Phishing Attacks, the Bank has
implemented a Fraud Management Solution. A SMS alerts facility is also being provided to customers
•Bank has implemented a RaidFunds2India solution in all its major territories.
•Bank’s 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. The IMPS facility is also being introduced for its customers.
•Bank’s Mobile Banking application is available on all Leading Brands including Blackberry, Android,
iPhone and Windows; National Unified USSD Platform also being enabled thru’ mobile banking.
•Internet Payment Gateway is implemented by the Bank to facilitate E-commerce Transactions in
multi currencies across the globe.
 Other strengths: Robust technology platform

•Bank’s ATM Switch is upgraded to handle increasing volume of ATM transactions ; the Bank’s ATM
count has increased to 2,230 by 30th Sept, 2012; its ATM switch also supports eight international
territories.
•Bank has introduced a Rupay card.
•Bank has a Facility of Multiple Accounts being linked to a single Debit Card (verified by Visa, CVV2)
and also a Mobile Number registration thru’ ATMs in CBS for the SMS Alerts.
•E-tax payments thru’ ATMs are also facilitated by the Bank and Mobile ATMs are introduced in several
cities.
•Bank has set up two Contact Centres in Lucknow & Baroda to address customer queries and
grievances speedily.
•Cash Management Solution is implemented to provide Operational Support to the Customers’ ALM.
•Anti Money Laundering (AML) is implemented in India and 21 of the Bank’s overseas territories.
•Bank has developed an Integrated Global Treasury Solution in its major territories like U.K., UAE,
Bahamas, Bahrain, Hong Kong, Singapore, Belgium, USA and India to reduce the cost of operations and
improve the fund management.
• Bank has a Centralised SWIFT system for India & its 22 overseas territories.
•The CTS -Cheque Truncation System is implemented in Delhi and a Grid based CTS System is
implemented in Chennai, Coimbatore and Bangalore.
•Online Trading (Corporate & Retail) has been implemented in India.
 Other strengths: Robust technology platform

•ACPC (Automated Cheque Processing Centre) for centralised Inward / Outward clearing has been
implemented in Mumbai, Surat and Ahmedabad regions of the Bank.
•Back Office functions are centralised in the Bank at its City Back Offices & ten Regional Back Offices
(at Baroda, Jaipur, Lucknow, Bhopal, Coimbtore, Kolkata, Mumbai, Jamshedpur, New Delhi, Pune) to
improve the service delivery to customers.
•RTGS & NEFT straight through processing has been implemented for all sponsored RRBs of the Bank.
•Bank’s intranet portal is revamped into a complete Knowledge Mgmt Solution for the employees’
benefit.
•Travel card has been introduced in Foreign Currency.
•Online loan applications have been rolled out for SME, Agriculture, Housing, Educational & Auto loans
along with the facility of online tracking of these applications.
•Bank has built a State-of-the-Art Data Centre conforming to Uptime Institute Tier-3 standard and a
Disaster Recovery Site in different seismic zones to ensure uninterrupted banking services to its
customers.
•Various Technology projects like Virtualisation, Back-up Consolidation & RAC (Realtime Application
Cluster) are being undertaken to support increasing business requirement.
•BoB IIT – an exclusive IT Training Centre has been set up in Ghandhinagar to educate the Bank’s Staff
in all IT related products & services.
 Other strengths: Rich human resource base ….
Ratio of Officers to Total
Period No. of Employees No. of Officers
Employees
Q1, FY09 36,344 13,643 37.5%
Q2, FY09 36,255 13,615 37.6%
Q3, FY09 36,045 13,502 37.5%
Q4, FY09 36,838 13,346 36.2%
Q1, FY10 37,007 14,163 38.3%
Q2, FY10 38,609 14,378 37.2%
Q3, FY10 37,039 14,358 38.8%
Q4,FY10 38,960 14,431 37.0%
Q1, FY11 38,551 14,335 37.2%
Q2, FY11 38,724 15,148 39.1%
Q3, FY11 38,629 15,838 41.0%
Q4, FY11 40,046 15,759 39.4%
Q1, FY12 40,250 15,681 39.0%
Q2, FY12 40,967 16,426 40.1%
Q3, FY12 41,345 16,646 40.3%
Q4, FY12 42175 16,953 40.2%
Q1, FY13 42,136 16,991 40.3%
Q2, FY13 43,587 17,316 39.7%
Other strengths: Steady improvement in capital strength
Capital Adequacy Ratio
Tier-I (%) Tier-II (%)
(Basel-II)
Q1, FY09 13.04% 7.79% 5.25%
Q2, FY09 12.57% 7.57% 5.00%
Q3, FY09 13.20% 8.53% 4.67%
Q4, FY09 14.05% 8.49% 5.56%
Q1, FY10 14.56% 8.81% 5.75%
Q2, FY10 14.67% 8.86% 5.81%
Q3, FY10 14.65% 9.31% 5.34%
Q4,FY10 14.36% 9.20% 5.16%
Q1, FY11 13.25% 8.16% 5.09%
Q2, FY11 13.22% 8.16% 5.06%
Q3, FY11 12.45% 7.70% 4.75%
Q4, FY11 14.52% 9.99% 4.53%
Q1, FY12 13.10% 9.06% 4.04%
Q2, FY12 12.73% 8.82% 3.91%
Q3, FY12 13.45% 9.31% 4.14%
Q4, FY12 14.67% 10.83% 3.84%
Q1, FY13 13.74% 10.13% 3.61%
Q2, FY13 12.91% 9.57% 3.34%
Other strengths: Relatively stronger presence in progressive states

Rest of India, 23.3 Gujarat, 20.6

Maharashtra, 11.8

UP & Uttaranchal,
22.0
South, 11.1
Rajasthan, 11.2
 Pattern of shareholding: 30th Sept, 2012

As on 30th Sept, 2012

Corp.
Indian Bodies
Public 6.20% Others •Share Capital: Rs 412.38 crore
4.80% 0.45%
•No. of Shares: 411.12 million

FIIs • Net worth: Rs 28,880.09 crore (up 28.7% , y-o-y)

15.37% • B. V. per share: Rs 702.47 (up 22.6%, y-o-y)
•Return on Equity: 16.9% in H1 & 18.02% in Q2, FY13

Govt. of • BOB is a Part of the following Indexes

Insurance India
Cos 54.31% BSE 100, BSE 200, BSE 500 & Bankex
12.87%
Mutual
Nifty, BankNifty, CNX 100, CNX 200, CNX 500
Funds • BOB’s Share is also listed on BSE and NSE in the
6.00% ‘Future and Options’ segment.
Sustained growth in financial value

Growth Rate
Period Net Worth
(y-o-y)

Q1, FY09 9,907 13.05%

Q2, FY09 10,304 13.44%
Q3, FY09 11,011 14.84%
Q4, FY09 11,387 19.52%
Q1, FY10 12,067 21.80%
Q2, FY10 12,703 23.28%
Q3, FY10 13,533 22.90%
Q4,FY10 13,785 21.06%
Q1, FY11 14,646 21.37%
Q2, FY11 15,669 23.35%
Q3, FY11 16,741 23.70%
Q4, FY11 19,751 43.28%
Q1, FY12 20,785 41.92%
Q2, FY12 22,440 43.21%
Q3, FY12 24,169 44.37%
Q4, FY12 26,303 33.18%
Q1, FY13 27,889 34.20%
Q2, FY13 28,880 28.70%
 Bank has performed consistently well
despite a non-supportive macro backdrop
Economic Indicator Q2, FY12 Q3, FY12 Q4, FY12 Q1, FY13 Q2, FY13

Real GDP growth (%) 6.7 6.1 5.3 5.5 NA

Agriculture (%) 3.1 2.8 1.7 2.9 NA

Industry (%) 2.8 0.8 0.7 0.8 NA

Services (%) 8.7 8.7 7.5 7.4 NA

Private Consumption Expenditure

growth (%) (at current market 14.1 15.2 13.9 12.6 NA
prices)
Gross Fixed Capital Formation (% to
30.9 27.8 28.6 29.9 NA
GDP) (at current market prices)
SCB Credit growth (%, Avg Basis) 20.0 17.9 16.8 17.7 16.7

SCB Deposit growth (%, Avg Basis) 18.0 16.8 15.3 13.8 14.2

SCB Incremental Credit-Deposit

55.0 68.3 84.3 46.6 46.2
Ratio (%, end-period)
WPI-Inflation, Core Inflation (%) 10.00 7.74 7.69 7.25 7.81
(end-period) (7.99) (7.91) (4.96) (4.85) (5.56)
Trade Balance ( US $ Billion) -43.9 -47.7 -51.7 -42.50 -49.3

Rupee-USD (%, end-period) 48.97 53.10 50.88 55.60 52.86

Foreign Exchange Reserves (end-

311.48 296.69 294.40 289.99 294.81
period, US $ Billion)
 Total business growth from FY09..
800,000

700330
700,000 672248 668552

600,000
534116
482211 491561
500,000 473825
416297 402731
400,000
335,648
316928
300,000 259958

194726 208769
190038
200,000
131385
99,152
100,000 75,690

0
FY09 FY10 FY11 FY12 Q1, FY13 Q2, FY13

Total Business Domestic Business Overseas Business

•In just three & a half years, the Bank’s total business has more than doubled.
 Total deposit growth from FY09..
450000
408149
400000 384871 382739

350000
305439
292877
300000 280135 277839
241044 233323
250000
192397 185283
200000
151409
150000
115273
104736 104899
100000 72,116
55,762
40,988
50000

0
FY09 FY10 FY11 FY12 Q1, FY13 Q2, FY13

Total Deposits Domestic Deposits Overseas Deposits

•In just three & a half years, the Bank’s total deposits have grown 2.12 times.
 Relatively well-protected domestic CASA share

120,000 45%

105259
39.81% 40%
100,000
35%
31.75%

80,000 30%

25%
60,000
49,290 20%

16.72%
40,000 15.02% 15%

10%
20,000
5%

0 0%

CASA Deposits CASA as % to Dom. Dep. CASA Deposits Growth Rate (y-o-y)
 Total advances growth from FY09..
300,000 287377 292181 40.00%
285813

35.00%
34.25%
250,000
228676
30.00%

200,000 25.70%
30.70%
175035 25.00%
23.00%
22.19% 22.19%
150,000 143251 20.00%

15.00%
100,000

10.00%

50,000
5.00%

0 0.00%
FY09 FY10 FY11 FY12 Q1, FY13 Q2, FY13

Net Advances Net Advances Growth Rate (y-o-y)

•In just three & a half years, the Bank’s total advances (net terms) have also
more than doubled.
 Steady gains in market share …..

4.40%
4.32%

4.20%

4.00% 4.18%

3.80%
3.63%
3.60%

3.40%
3.42%
3.20%

3.00%

Deposits Domestic Market Share Advances Domestic Market Share

 Consistency in profit-making
5000.00
Rs crore •During the last five years, the Bank’s Half-yearly Net Profit 4610.88
4500.00 has grown at the rich CAGR of 30.0%.

4000.00 3945.23

3500.00
3184.61

3000.00

2440.25
2500.00
2198.92
2041.53 1878.46
2000.00
1585.81
1500.00 1281.70 1319.56

1000.00
658.13 766.14

500.00

0.00
Sep'07 Sep'08 Sep'09 Sep'10 Sep'11 Sep'12

Gross Profit Net Profit

Relatively lower NPL ratios in the industry
Gross Net
Period NPA NPA
(%) (%)
Q1, FY09 1.86% 0.52%
Q2, FY09 1.62% 0.43%
Q3, FY09 1.50% 0.37%
Q4, FY09 1.27% 0.31%
Q1, FY10 1.44% 0.27%
Q2, FY10 1.30% 0.27%
Q3, FY10 1.43% 0.31%
Q4,FY10 1.36% 0.34%
Q1, FY11 1.41% 0.39%
Q2, FY11 1.39% 0.38%
Q3, FY11 1.32% 0.36%
Q4, FY11 1.36% 0.35%
Q1, FY12 1.46% 0.44%
Q2, FY12 1.41% 0.47%
Q3, FY12 1.48% 0.51%
Q4, FY12 1.53% 0.54%
Q1, FY13 1.84% 0.65%
Q2, FY13 1.98% 0.82%
 Bank’s business: Sept’11 to Sept’12

Change
Particular Y-O-Y
Sept’11 Mar’12 Sept’12 Over
(Rs crore) (%)
Mar’12 (%)

Global Business 5,68,306 6,72,248 7,00,330 23.2 4.2

Domestic Business 4,13,753 4,82,211 4,91,561 18.8 1.9

Overseas Business 1,54,552 1,90,038 2,08,769 35.1 9.9

Global Deposits 3,29,185 3,84,871 4,08,150 24.0 6.0

Domestic Deposits 2,44,720 2,80,135 2,92,877 19.7 4.5

Overseas Deposits 84,466 1,04,736 1,15,273 36.5 10.1

Global CASA Deposits 90,179 1,03,524 1,05,259 16.7 1.7

Domestic CASA 83,250 92,948 92,979 11.7 0.03

Overseas CASA 6,929 10,576 12,280 77.2 16.1

•Share of Domestic CASA was at 31.75% in terms of Aggregate Deposits and at 33.43% in
terms of Core Deposits as on 30th Sept, 2012.
 Bank’s business: Sept’11 to Sept’12
Change
Particular Y-O-Y
Sept’11 Mar’12 Sept’12 Over
(Rs crore) (%)
Mar’12 (%)

Global advances (Net) 2,39,120 2,87,377 2,92,181 22.2 1.7

Domestic Advances 1,69,034 2,02,075 1,98,685 17.5 -1.7

Overseas Advances 70,087 85,302 93,496 33.4 9.6

Retail Credit
29,885 35,668 34,245 14.6 -4.0
Of which:

Home Loans 13,304 14,133 14,789 11.2 4.6

SME Credit 30,149 34,512 36,915 22.4 7.0

Farm Credit* 22,043 29,036 25,735 16.8 -11.4

Credit to Weaker
13,650 15,863 14,780 8.3 -6.8
Sections*
* As of Last Reporting Friday
 Bank’s business: Sept’11 to Sept’12

Change
Particular Y-O-Y
Sept’11 Mar’12 Sept’12 Over
(Rs crore) (%)
Mar’12 (%)

Global Saving Deposits 68,541 74,580 77,824 13.5 4.3

Domestic Savings Deposits 67,013 72,575 75,821 13.1 4.5

Overseas Savings Deposits 1,528 2,004 2,002 31.1 -0.1

Global Current Deposits 21,639 28,944 27,436 26.8 -5.5

Domestic Current Deposits 16,237 20,372 17,158 5.7 -15.8

Overseas Current Deposits

5,401 8,572 10,278 90.2 19.9
 Other highlights: Q2,FY12 versus Q2,FY13

Particular (in %) Q2, Q3, Q4, Q1, Q2,

FY12 FY12 FY12 FY13 FY13

Global Cost of Deposits 5.61 5.65 5.81 5.89 5.85

Domestic Cost of Deposits 6.84 6.90 7.17 7.30 7.36
Overseas Cost of Deposits 1.82 1.96 1.74 1.86 1.73

Global Yield on Advances 9.64 9.45 9.33 9.08 9.07

Domestic Yield on Advances 12.14 12.01 11.71 11.65 11.75
Overseas Yield on Advances 3.37 3.60 3.75 3.52 3.49
 Other highlights: Q2, FY12 versus Q2,FY13

Particular (in %) Q2, Q3, Q4, Q1, Q2,

FY12 FY12 FY12 FY13 FY13

Global Yield on Investment 7.58 7.67 7.53 7.71 7.79

Domestic Yield on Investment 7.72 7.79 7.69 7.83 7.92
Overseas Yield on Investment 4.24 4.90 3.84 4.91 4.64

Global NIM 3.07 2.99 2.96 2.73 2.71

Domestic NIM 3.67 3.51 3.44 3.22 3.23
Overseas NIM 1.42 1.64 1.68 1.55 1.54
Key productivity indicators: Q2, FY12 versus Q2, FY13

Particulars Q2, FY12 Q2, FY13

Business per Employee (Rs crore) 12.98 14.84

Business per Branch (Rs crore) 160.27 171.73

Profit per Employee (Rs lakh) 2.85 2.98

Profit per Branch (Rs lakh) 32.89 31.91

Non-Interest income: Q2, FY12 and Q2, FY13

% Change
(Rs crore) Q2, FY12 Q2, FY13
(Y-O-Y)
Commission, Exchange,
313.65 310.40 -1.0
Brokerage
Incidental Charges 74.85 84.88 13.4
Other Miscellaneous Income 66.38 72.36 9.0
Total Fee-Based Income 454.88 467.64 2.8
Trading Gains 10.15 112.02 1003.7

Profit on Exchange Transactions 147.33 183.18 24.3

Recovery from PWO 121.97 65.47 -46.3

Total Non-Interest Income 734.33 828.31 12.8

Provisions & contingencies: Q2, FY12 and Q2, FY13

Absolute
(Rs crore) Q2, FY12 Q2, FY13 Change

Provision for NPA & Bad Debts

298.13 722.93 424.81
Written-off
Provision for Depreciation on
144.99 -134.04 -279.03
Investment

Provision for Standard Advances 46.92 40.79 -6.13

Other Provisions (including

-6.68 16.73 23.41
Provision for staff welfare)

Tax Provisions 477.54 422.34 -55.20

Total Provisions 960.90 1068.75 107.85

 Bank’s domestic treasury highlights: Q2, FY12

• Treasury Income stood at the level of Rs 295.20 crore in Q2, FY13 up 87.5% (y-o-y).
• Out of this, Trading Gains stood at Rs 112.02 crore in Q2, FY13 as financial market
conditions improved significantly in Q2, FY13.
• As of Sept 30, 2012, the share of SLR Securities in Total Investment was 84.61%.
• The Bank had 81.80% of SLR Securities in HTM and 17.95% in AFS at end-Sept 2012.
• During the year FY13, the Bank shifted SLR securities worth Rs 1,265.42 cr (at book value)
from AFS to HTM on 3rd April and provided Rs 20.69 cr as “depreciation” on shifting.
• The benchmark G-sec yield at the time of shifting ruled at 8.57%.
• The per cent of SLR to NDTL as on 30th Sept, 2012 was 27.94%.
• As on 30th Sept, 2012, the modified duration of AFS investments was 3.52 years & that of
HTM securities was 5.07 years.
• Total size of Bank’s Domestic Investment Book as on 30th Sept, 2012 stood at Rs 98,375
crore.
 Highlights of overseas business: Q2, FY13
• During H1, FY13, Bank’s “Overseas Business” contributed 29.8% to its Total Business,
24.7% to Gross Profit and 38.9% to Core Fee-based income (i.e., Commission, Exchanges,
brokerage, etc.)

• Out of the Total Overseas Loan-book, 54.4% was Buyers’ Credit/ Export Credit; 26.3% in
was Syndicated Loans (mostly to Indian corporates) & 19.3% was Local Credit.

• Less riskiness of the Overseas Loan-book was responsible in keeping Gross NPA (%) in
Overseas Assets at 0.63% as on 30th Sept, 2012.

• Even the Cost-Income Ratio in Overseas operations was more favourable at 16.44% in H1,
FY13 versus 41.13% in Domestic operations.

• In Q2, FY13, the NIM (as % of interest-earning assets) in Overseas operations stood at the
healthy level of 1.54%; Gross Profit to Avg. Working Funds ratio at 1.76% and Return on
Equity at 17.26%.

• During H1, FY13, Bank opened branches in Wellington and Manukau, New Zealand;
Entebbe and Kabale, Uganda, Rose Belle in Mauritius, Tema in Ghana and Sohar in Oman.
 NPA movement (Gross): H1, FY13

Particular ( Rs crore)
A. Opening Balance 4,464.75
B. Additions during H1, FY13 2,728.12

Out of which, Fresh Slippages 2,613.34

C. Reduction during H1, FY13 1,313.84

Recovery 298.95

Upgradation 238.07
PWO & WO 773.81
Exchange Difference 3.01
NPA as on 30th Sept, 2012 5,879.03

Recovery in PWO in H1, FY12 148.46

Sector-wise gross NPAs: End-Sept, FY12 & FY13

Sector Gross NPA (%) Gross NPA (%)

End-Sept, FY12 End-Sept, FY13

Agriculture 4.58 4.58

Large & Medium

1.38 1.63
Industries

Retail 2.17 2.29

Housing 1.89 1.99

SSI (Mfg)
1.65 4.14

Total MSME
3.06 3.55

Overseas Operations
0.69 0.63
 Cumulative position of restructured assets

• During the past 54 months (1 Apr’08 to 30 Sept’12), Bank has restructured 88,288
accounts amounting Rs 16,680.44 crore in its Domestic operations.

• Within this, the loans worth Rs 933.03 cr were restructured in Q2, FY13; Rs
770.57 cr in Q1, FY13; Rs 8,265.41 cr were restructured in FY12, Rs 1,597.81 cr
were restructured in FY11, Rs 2,455.05 cr in FY10 & Rs 2,658.57 cr in FY09.

• For the period of 54 months, out of the total amount restructured, Rs 12,582.17
cr (75.4%) belonged to wholesale banking, Rs 2,422.49 cr (14.5%) to SMEs, Rs
620.12 cr (3.7%) to retail and Rs 1,055.66 cr (6.3%) to agriculture sector.

• About 94 accounts (of Rs 1 crore & above) restructured on/after 1st Apr, 2008
with aggregate outstanding of Rs 1,500.53 cr slipped to NPA after restructuring
and most of them belonged to the SME segment.

• In net terms terms, the outstanding amount of restructured loans in the Bank’s
Overseas Business was Rs 4,398.65 crore against 87 accounts as on 30/09/2012.
• Out of these twelve accounts were restructured during H1, FY13 involving the
amount Rs 457.47 crore.
Sectoral deployment of credit at end-Sept, 2012

% share in Gross
Sector
Domestic Credit

Agriculture 12.7

Retail 16.9

SME 18.2

Wholesale
37.8

Misc. including
14.4
Trade

Total 100.0%
Bank’s BPR Project - Navnirmaan
•Project Navnirmaan has altogether 18 activities covering both BPR & Organisational
Restructuring, aimed at transforming the Bank’s branches into a sales & service centres to
make possible a sustained sales growth, superior customer experience and alternate
channel migration.
•The most important initiatives are-
•Conversion of all metro & urban branches into Baroda Next branches within a
timeline [1,273 branches rolled out so far across 13 zones & 56 regions]
•Creation of automated & lean Back Offices like:
•City Back Office (Automated cheque processing introduced at Mumbai, Surat &
Ahmedabad)
•Regional Back Office [Ten RBOs functioning (one in each zone); five RBOs opened
during FY13]; for CASA opening [No. of brs linked – 2,210]; for issuance of personalised
cheque books [ no. of brs linked – 3,185]. More than 6,500 CASA are being opened per
day.
•Establishment of two Contact (or Call) Centres
•Introduction of frontline automation [Queue Management System & Cheque Deposit
Machines] at select branches for customer convenience
•Creation of an Academy of excellence [Thru’ Training & Boot Camps]
•Organisational Restructuring [ Creation of Selling roles at branch, R.O. & Z.O.]
Bank’s BPR Project - Navnirmaan
•The initial impact of Baroda Next migration has been observed to be rewarding both in
terms of increased customer satisfaction & CASA growth.
•The said impact has been sustained at 110 Baroda Next brs evaluated on sales, customer
satisfaction, etc., during the first stage of evaluation.
•Another evaluation carried out recently at Baroda Next brs on (a) customer satisfaction
[at 177 brs] and (b) employee satisfaction [at 171 brs] showed significant improvement.
•Further evaluation initiatives are on.
•A certification procedure for Baroda Next brs has been introduced for process
compliance/adherence, etc.; CSAT/ESAT externally evaluated by engaging market research
agencies.
•To sustain Sales growth, a new Sales Operating Model has been rolled out in 255 brs in Mumbai,
Surat, Baroda, Ahmedabad, Delhi & Kanpur
•Out of 15 Mid Corporate Brs planned, 14 are already functional and one more is expected to be
opened soon.
•Further centralisation initiatives are going to be piloted soon to enable the brs to become a
“Sales-cum-Service” outlet.
•Bank’s Hi-Tech City Branch at Hyderabad has been transformed into an e-branch.
 Bank’s HR initiatives
Recruitment – 2012-13
•Bank’s HR Function has focused on hiring efforts on a sustained basis to bridge the “gap” created by
superannuation and to cater to the Bank’s consistent business growth and branch expansion
•Bank’s Proposed New Hiring in FY13: 3,400 { 2,280 joined up to 30th Sept, 2012}
•Probationary Officers: 600 { 403 joined up to 30/09/12}
•Specialist Officers: 150 { 25 joined up to 30/09/12}
•Baroda Manipal Trainees: 400 { 169 joined up to 30/09/12}
•Campus Recruitment: 250 { 220 joined up to 30/09/12}
•Clerks: 2,000 { 1,463 joined up to 30/09/12}
•Bank carried out a three-month long residential programme involving massive skills’ upgradation for its
new recruits during FY13 with a focus on development of key banking skills covering the major areas like
credit, forex operations, soft skills, etc.
•Other path-breaking initiatives in Employee Development & HR are –
•Baroda Next: A comprehensive leadership development training covering almost 1,500 leaders {all branch
heads of urban/metro branches & AGMs/DGMs in the Bank
•Project Sparsh: A transformational HR project focusing on talent management, succession planning,
creation of a scientific staffing model & manpower planning, capability building & performance management.
•Baroda-Manipal School of Banking: An innovative & new channel of resourcing of trained manpower in the
Bank. Around 180 students are being inducted in this school every quarter for a focused grooming and a one-
year full-time PG Course in Banking that is tailored to the Bank’s specific requirements.
Future Outlook & Guidance
•Recently, India’s government hiked administered domestic diesel prices, resumed privatization &
permitted FDI in multi-brand retail and aviation.
•RBI also cut the CRR, but kept the policy rates unchanged.
• Advancing of long-awaited reforms helped lift the stock market and the rupee.
•Due to delayed monsoon & weak external demand, India likely to grow in the band of 5.2% to 5.5%
in FY13. At present, the growth in non-food credit is in the band of 15.0%-16.0% and deposits in
13.0%-14.0% and M3 around 13.0%.
•Bank of Baroda will continue with its cautious stance and try to grow at 1.0% to 1.5% over the
banking industry’s average growth, given its strong presence in the industrially progressive states and
the support it receives from its overseas operations.
•Strategic thrust will be on protecting the “Financial Soundness” that the Bank has consistently
maintained throughout the past five years vitiated by global financial & economic turbulence.
•With a primary focus on risk management, improvement of systems & controls, liquidity and
capital strength, development of human capital and customer-friendly branch structures, etc.
• Coming to the imminent change in the Top Leadership, I would like to give a quote of Walter
Lippman ( a famous American Writer) – “The final test of a leader is that he leaves behind him in
other men, the conviction and the will to carry on”.
•In the times to come, all Barodians will collectively prove that our revered leaders have passed
the test with flying colours.
Thank you.