banking.bob 180911
TRANSCRIPT
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GROUP3
Akanksha Shukla 10020241005Abhishek John Aind 10020241029Nikhil Wajekar 10020241073Nishant Singhaniya 10020241016Subin George Sajan 10020241053
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PROFILE
On 20th July 1908, under the Companies Act of 1897, and with a paidup capital of Rs 10 Lacs started the legend that has now translated intoa strong, trustworthy financial body, THE BANK OF BARODA.
Bank of Baroda Bank of Baroda (BoB) is the third largest bank in India,after the State Bank of India and the Punjab National Bank and ahead ofICICI Bank.
BoB has total assets in excess of Rs. 3,583 billion, a network of over
3,409 branches and offices, and about 1,657 ATMs.
Cashing in on its strong capital and liquidity position, robust liabilityfranchise and improved credit culture, the Bank has managed to gainmarket share consistently during the past three years amidst
maintaining high profitability and asset quality standards.
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LIABILITIESIt shows how much the Company owes to others. It comprises of:
Capital Reserves & Surplus
Deposits
Borrowings Other Liabilities & Provisions
0.11%5.75%
85.22%
6.22%2.69%0.13%
5.30%
86.69%
4.80% 3.09%
Capital Reserves &Surplus
Deposits Borrowings Other Liabilties& Provisions
31-Mar-11 31-Mar-10
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LIABILITIES:-
DEPOSITS
76.39% 76.89%
23.61% 23.11%
2011 2010
Deposits of branches in India Deposits of Branches outside India
Deposits is a major component of the Liabilities side of the bank.(Rs. In 000)
Deposits of branches in India 2,333,233,001 1,855,002,469
Deposits of Branches outside India 721,161,818 557,616,783
TOTAL 3,054,394,819 2,412,619,252
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ASSETS
5.54%8.39%
19.88%
63.81%
0.64% 1.74%4.86%
7.88%
21.98%
62.89%
0.82% 1.56%
Cash &
Balances with
RBI
Balance with
Banks and
Money at Call
and Short
Notice
Investments Loans &
Advances
Fixed Assets Other Assets
31-Mar-11 31-Mar-10
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ASSETS:-INVESTMENTS
These are assets held to earn interest and help meet liquidity needs. It
comprises :-
31/Mar/10
94.08%
31/Mar/11
94.95%
31/Mar/10
5.92%31/Mar/11
5.05%
investments in India Investments outside India
(Rs. In 000) 31-Mar-11 31-Mar-10Investments in India 676,643,732 575,616,432
Investments outside India 35,962,577 36,207,322
TOTAL 712,606,309 611,823,754
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ASSETS :- LOANS & ADVANCES
12.98%
42.77% 44.25%
11.01%
45.49% 43.50%
Bill Purchased and
discounted
Cash Credits, Overdrafts and
loans repayable
Term Loans
31-Mar-11 31-Mar-10
31-Mar-11 31-Mar-10Bills Purchased and discounted 296,899,020 192,659,326
Cash Credits, Overdrafts and loans repayable 978,048,618 796,314,689
Term Loans 1,011,815,971 761,378,844
Total 2,286,763,609 1,750,352,859
The Banks Loans and Advances increased healthily by 28.7%.
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RETURN ON EQUITY (ROE = NI / TE)
ROE is composed of two parts: Return on Assets (ROA = NI / TA),
Equity Multiplier (EM = TA / TE),
Despite widening of the equity base, the Banks Return on Equity
stood at a healthy level of 20.21% during 2010-11 with improved
profitability and productivity.
2011 2010
ROA 1.18% 1.10%
Equity Multiplier 17.07 18.42
ROE = (ROA*EM) 20.21% 20.25%
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PERFORMANCE ANALYSIS RATIOS
Return on Assets (ROA = NI / TA)
ROA =AU(Asset utilization)- ER(Expense ratio)
= (TR / TA) - (TE / TA)
Banks Return on Assets (ROA) sharply improved due to sustained gains in
core earnings and operating efficiency.
Return on Equity (ROE = NI / TE)
2011 2010
AU 6.89% 7.01%
ER 5.71% 5.91%
ROA 1.18% 1.10%
NI 42416797 30583310
TE 209931119 151063827
ROE (same asROA*EM)
20.21% 20.25%
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AGGREGATE PROFITABILITY MEASURES
31-Mar-11 31-Mar-10
Net Interest Margin =NII/ EARNING ASSETS(EA)
2.93% 2.51%
Spread
=(INT INCOME/EA)
(INT EXPENSE/INT BEARING
LIABILITIES) 3.30% 2.84%
Earning Base
=EA / TA 83.69% 84.87%
Burden/TA =(NONINTEREST EXP. - NONINTEREST
INCOME) / TA 0.51% 0.36%
Efficiency Ratio =NON INT. EXP. / (NET INT. INC. +
NON INT. INC.) 39.87% 43.57%
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NPA
31-Mar-11 31-Mar-10Gross NPA (Rs. 000) 3152.50 2400.69
Net NPA to Net Advances 0.35 0.34
Sector-wise NPAPercentage of NPA to total
advances in that sector
31-Mar-11 31-Mar-10
Agriculture & Allied Activities 3.47 3.33
Industry(Micro, Small, Medium & Large) 1.76 1.06
Services 1.22 0.82
Personal Loans 1.72 3.68
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EPS
31-Mar-11 31-Mar-10
Net PAT (Rs. In Crores) 4433.71 3179.30
No. of Shares 391546079 364266500
Basic & Diluted EPS (Rs.) 121.34 87.28
Nominal Value per Share (Rs.) 10 10
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OBSERVATIONS
Commission, Exchange and Brokerage and a
growth in operating expenses enabled the Bank
to grow its Operating Profit by 43.8% (y-o-y) to
Rs 6,981.61 crore and Net Profit by 38.7% (y-o-y)
to Rs 4,241.68 crore in 2010-11.
The Banks Domestic Low-cost or CASA deposits
richly grew by 21.4% (y-o-y) forming 34.4% share
of the total Domestic Deposits.
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OBSERVATIONS
Priority Sector Credit recorded a growth of
18.2% during 2010-11 and formed 43.57% of
its Adjusted Net Bank Credit, surpassing the
mandatory requirement of 40.00%.