Bank of Baroda Financial Results Q1, 2009-10 July 27, 2009

Net Profit up 84.8%(y-o-y) to Rs 685.38 crore Operating Profit up 26.2% (y-o-y) to Rs 1,009.93 crore Total Business up 28.2% (y-o-y) to Rs 3,41,282crore Total Advances up 28.3% (y-o-y) Total Deposits up 28.2% (y-o-y) Total Income up 24.4% (y-o-y) Net NPAs (%) at 0.27% Capital Adequacy Ratio at 14.56% ROAA at 1.19% ROE at 22.72%

Bank of Baroda has announced its reviewed results for the first quarter of 2009-10 (April-June, 2009-10) following the approval of its Board of Directors on July 27, 2009. Results at a Glance
Particulars Total Income Interest Income Other Income Total Expenses Interest Expenses Operating Expenses Operating Profit Provisions & Contingencies (other than taxes) Provision for Taxes Net Profit Apr-June 2009-10 4,735.15 4,032.11 703.04 3,725.22 2,827.41 897.81 1,009.93 -38.96 363.51 685.38 Apr-June 2008-09 3,806.37 3,293.82 512.55 3,006.18 2,236.81 769.37 800.19 220.3 209.02 370.86 % Change 24.40% 22.41% 37.17% 23.92% 26.40% 16.69% 26.21% -117.68% 73.91% 84.81%

PROFIT

The Banks Operating Profit and Net Profit grew healthily in Q1, 2009-10 by 26.2% and 84.8% respectively, on year on year basis, despite subdued economic conditions. During the first quarter of 2009-10, the Banks Operating Profit stood at Rs 1,009.93 crore, while Net Profit at Rs 685.38 crore.

INCOME

The overall profitability was supported by a growth of 24.4% (y-o-y) in Total Income in Q1, 2009-10 that rose to Rs 4,735.15 crore. While Interest Income posted a growth of 22.4% (y-o-y) and attained the level of Rs 4,032.11 crore, Interest Earned on Advances grew by a robust 27.1% (y-o-y). The Banks Non-Interest Income too grew healthily by 37.2% (y-o-y) on the back of strong trading gains.
NET INTEREST INCOME

Net Interest Income of the Bank registered a growth of 14.0% (y-o-y) from Rs 1,057.01 crore in Q1, 2008-09 to Rs 1,204.70 crore in Q1, 2009-10.
EXPENSES

The Banks Total Expenses grew moderately by 23.9% (y-o-y) to Rs 3,725.22 in Q1, 2009-10. Whereas the growth in Operating Expenses was just 16.7% (y-o-y), that in Staff Expenses was 13.7% during Q1, 2009-10.
PROVISIONS AND CONTINGENCIES

Provisions and Contingencies (excluding tax provisions) made by the Bank sharply declined by 117.7% in Q1, 2009-10 on account of substantial write-backs from provisions on domestic and foreign investment books. In Indian markets, the yield on 10-year government bond was quite stable during Q1, 2009-10, while Sensex surged by a huge 49.3% offering good opportunities for trading gains. In a prudent fashion, the Bank has made additional provision of Rs 148.13 crore in certain identified NPA accounts during Q1, 2009-10. Provisions for Taxes, however, increased from Rs 209.02 crore to Rs 363.51crore in tandem with higher profits earned by the Bank.
BUSINESS EXPANSION

The Banks Total Business expanded by 28.2% (y-o-y) to Rs 3,41,282 crore in Q1, 2009-10. Out of this, Total Deposits increased by 28.2% (y-o-y) to Rs 1,98,609 crore, whereas Total Advances increased by 28.3% (y-o-y) to Rs 1,42,672 crore in Q1, 2009-10. The share of Domestic CASA was at the healthy level of 35.09% during Q1, 2009-10. The Banks Retail Credit increased by 19.7% (y-o-y) to Rs 20,221 crore and formed 18.8% of Gross Domestic Credit of the Bank as on 30th June, 2009. While the Banks Farm Credit grew by a healthy 31.2% (y-o-y) to Rs 18,010 crore, its Credit to SME sector grew by 25.2% (y-o-y) to Rs 15,136 crore.
ASSET QUALITY

Gross NPA of the Bank declined to Rs 2,068.15 crore as on June 30, 2009 from Rs 2,091.06 crore as on June 30, 2008. In percentage terms, the Gross NPA ratio stands at 1.44% as on 30th June, 2009. The Net NPA (%) too declined from 0.52% at end-June 2008 to 0.27% at end-June 2009. The Banks Loan Loss Coverage Ratio stood at the healthy level of 81.70% as on 30th June, 2009.

CAPITAL ADEQUACY

The Banks Capital Adequacy Ratio (Basel II) improved to 14.56% at end-June 2009 from 13.04% at end-June 2008. Out of 14.56%, the share of Tier 1 capital was 8.81% and that of Tier 2 Capital was 5.75%.
KEY FINANCIAL RATIOS

The Banks Net Worth expanded by 21.8% (y-o-y) to Rs 12,066.77 crore as on 30th June, 2009. In annualized terms, the Banks Return on Equity (%) stood at 22.72% and Return on Average Assets (%) at 1.19% in the first quarter of 2009-10. The Banks Book Value per Share improved to Rs 331.26 as on 30th June, 2009 from Rs 271.97 as on 30th June, 2008.
TECHNOLOGY

By 30th June, 2009, the Bank completed CBS rollout in 1,987 domestic branches and 66 overseas branches. The Bank so far has brought 94.0% of its business under the CBS platform and proposes to cover 100.0% by end-September, 2009. The Banks ATM network expanded to 1,183 by end-June, 2009 from a mere 170 in 2005.
OVERSEAS BUSINESS

The Banks Overseas Business continues to remain the mainstay of its overall operations. At end-June, 2009, it contributed 23.5% to the Banks Global Business and 23.2% to its Operating Profit. The Gross NPA (%) in overseas business stood at a moderate level of 0.52% at end-June, 2009. As on 30th June, 2009 the Banks Overseas Operations extended across 25 countries through 74 offices. On 10th July, 2009, the Bank opened two branches at its Trinidad & Tobago subsidiary. It proposes to open two more branches at its Uganda subsidiary by December, 2009. The Banks Joint Venture with Indian Overseas Bank and Andhra Bank to open a banking company at Kuala Lumpur in Malaysia is expected to materialize in Q4, 2009-10.

July 27, 2009 Mumbai

M. D. Mallya Chairman & Managing Director