bcb gr-8 ppt

8/8/2019 BCB GR-8 PPT

1/38

By: Binit, Vinod, Kushagra, Mohit, Ashutosh, Pritish,

Kirti, Neiti & Nandita

8/8/2019 BCB GR-8 PPT

2/38

Agenda

Ref: Doug Ready, Linda Hill and Jay Conger - HBR Nov08

Bank Milestones

Business & Product Mix

Banks Financial Reviews

Banks Performance

Banks Strategy

Recent Banks News

8/8/2019 BCB GR-8 PPT

3/38

Milestones

Source: WarforTalent HBR

1906: Group of eminent businessmen establishes the Bank

1946: Opening of London Branch - First-ever Indian bank toopen a branch overseas

1969: Nationalization along with 13 other banks - branchNetwork Indian: 207 & Foreign: 12

1997: Launched maiden IPO - Government shareholdingdiluted to 76.53%

2007: Surpassed landmark of INR 10bn in net-profits



8/8/2019 BCB GR-8 PPT

4/38


Management


Alok K. Mishra A.K. Motayed B.A. Prabhakar

G. Mahalingam Indresh V. Singh K.S. Sampath M.N. Gopinath N. Shesadri P.M. Sirajuddin P.P. Mallya Rajeev Bhatia Shanta Chavda Tarun Bajaj

CEO/CHAIRMAN/MDCEO/CHAIRMAN/MDDIRECTORDIRECTOREXECUTIVE DIRECTOREXECUTIVE DIRECTOR

DIRECTORDIRECTORDIRECTORDIRECTORDIRECTORDIRECTORDIRECTORDIRECTOREXECUTIVE DIRECTOREXECUTIVE DIRECTORDIRECTORDIRECTOR

DIRECTORDIRECTORCOMPANY SECRETARYCOMPANY SECRETARYDIRECTORDIRECTORDIRECTORDIRECTOR

8/8/2019 BCB GR-8 PPT

5/38

Source: WarforTalent HBR

Branches

No. of Branches 3236Foreign 29

Indian 3207

Of which

Metropolitan 628Urban 607

Semi-Urban 701

Rural 1271

Computerized Branch 3207

Fully Computerized 3207

Partially Computerized 0

Specialized Branches 201

Extension Counters 57

8/8/2019 BCB GR-8 PPT

6/38

Global Footprints


8/8/2019 BCB GR-8 PPT

7/38

Employees


Category March 2009 March 2010

Total No. of Employees 40155 39676

Officers 14195 13990

Clerks 17517 16832

Sub- Staff 8443 8380

In Indian offices 39712 39202

In Overseas Offices 443 474

Women Employees 6392 6301

% of Total 16.09% 16.07%

Handicapped

Employees

582 607

% of Total 1.46% 1.55%

8/8/2019 BCB GR-8 PPT

8/38

Online Services


Mobile Banking & Payments

Internet Banking

Online Share Trading

Pay Bills

Book Tickets

Tax Payment

Star E-Remit

8/8/2019 BCB GR-8 PPT

9/38

Ancillary Services


Remittance

Star Cash Management Service

Safe Deposit Vault

Safe Custody Service

Depository Services

Gold

Insurance

Mutual Fund

8/8/2019 BCB GR-8 PPT

10/38

Debit Cards


Star links International debit cum ATM card(VISA)

BOI Global Debit cum ATM card(Master Card)

Eligibility: satisfactory running SB,OD,CA

Minimum Balance: SB 500/- , CD 5000/-

8/8/2019 BCB GR-8 PPT

11/38

Credit Cards

Card Type EntranceFee

Annual Membershipfee

ReplacementCharges andAdd on

Principal Add On

India Cards Credit Nil 400 200 100

Taj Premiumcards

Credit Nil 800 400 400

BOI NavySilver

Credit Nil 350 175 175

BOI Gold Credit Nil 500 250 250

Gold (VISA) Credit Nil 600 350 50% ofmembership

fee

GoldInternational

Credit Nil 1500 750 50% of

membershipfee

8/8/2019 BCB GR-8 PPT

12/38

Deposits


Savings Current Term Tax SavingStar Surakshya Star Benefit Double Benefit Star Sunidhi

Ordinary Normal Fixed Deposit

Receipt

Capital Gain Tax

Saving Scheme

Basic Saving CD Plus Short DepositReceipt

BOI Saving Plus Super Current Quarterly Income

Certificate

Super Saving Plus Star GoldCurrent

Monthly IncomeCertificate

Star Diamond Diamond Current Recurring

Power Salary Diamond Plus

8/8/2019 BCB GR-8 PPT

13/38

Loans


Personal

Loans

Agriculture &

Priority Sector

SME Commercial

Loans

Trade

Finance

Pensioner Agri Clinics Credit linked Channel Credit Bill Finance

Home Cold Storage Akshay Urja

Shops

Discounted FCF Bill

Guarantee

Holiday Cash Credit Priyadarshini

Yojana

Foreign Currency

Swing Limits

Mortgage Solar Energy National Equity

Fund

Exporters Gold

Card

IPO Crop Finance Energy

Efficiency

Dual Currency

Savings Limit

Education Land Devt. Artisan Credit

Cards

Export Finance

Mahila Gold Irrigation

Auto Fin. Poultry Devt.

Godowns

8/8/2019 BCB GR-8 PPT

14/38

NRI


NRI Deposit Scheme NRI--Yield EnhancingScheme

NRI HousingLoans/PIOs

Foreign Currency Non

Resident (FCNR)accounts

Yield Enhancing

Schemes For NRIs atour Overseas Branches

Cover Page

Non-Resident External

(NRE) accounts

Yield Enhancing

Schemes For NRIs at

our Overseas Branches

inside Page

Minimum Amt.

1500USD

8/8/2019 BCB GR-8 PPT

15/38

Interest Rates are different for different transactions. A clear picture of

the rates can be viewed in the website for all the

Deposits & Advances Schemes.

Country

CEOs

SB DepositRate

3.50% p.a

Base Rate8.50% p.a

NRI DepositRate

3.50% p.a

BPLR12.50% p.a

Rupee Export

Credit InterestRate

7% p.a

Interest Rates

8/8/2019 BCB GR-8 PPT

16/38

DepositsBanks deposits increased by Rs.40,053crore to Rs.229,762crore during

the year recording a growth of 21.11%

Current Deposits Savings Bank CASA Share of CASA toAggregateDeposits

Y-o-Y Growth:

32%

Y-o-Y Growth:

26%

Y-o-Y Growth:

27%

mar 09 : 30.76%

Mar 10 : 31.75%Sep 10 : 33.48%

Domestic Deposits MAR-2010(INR / MN.)

SEPT-2010(INR / MN.)

Current Deposits 158,872 139,146

Saving Deposits 480,758 541,532

CASA 639,630 680,678

8/8/2019 BCB GR-8 PPT

17/38

Contd

8/8/2019 BCB GR-8 PPT

18/38

C / D Ratio

8/8/2019 BCB GR-8 PPT

19/38

Investment / Deposit Ratio

8/8/2019 BCB GR-8 PPT

20/38

Advances


8/8/2019 BCB GR-8 PPT

21/38

Contd

8/8/2019 BCB GR-8 PPT

22/38

NII & NIM

Net Interest Income (Rs.In Cr) 2009 2010

Interest Earned 16,347 17,878

Interest Expended 10,848 12,122

Net Interest Income 5,499 5,756

NET INTEREST MARGIN (Rs.in Cr) 2009 2010

NII 5,499 5,756

Avg Earning Asset 229125 266801

NIM 2.54 2.16

8/8/2019 BCB GR-8 PPT

23/38

Non Performing Asset - NPA

Gross NPAs FY 2010

Category Amount(Rs In Cr.)

Sub Standard 2829.02

Doubtful 1 820.5

Doubtful 2 372.48

Doubtful 3 177.59

Loss 693.55

TOTAL 4893.14

8/8/2019 BCB GR-8 PPT

24/38

Banks Performance(Rs in Mn)

Mar 2010 Mar 2009Business Mix 4,010,788 3,344,400

Deposits 2,297,619 1,897,085

Advances 1,713,169 1,447,316

Net Profit 4,279 8,104

GrossNPA (%) 2.85 1.71

Net NPA (%) 1.31 0.44

Retur on Assets(%) 0.70 % 1.49%

Rtn.on Equity (%) 13.74 29.51

BookValue (INR) 236.84 211.89

8/8/2019 BCB GR-8 PPT

25/38

Contd


Gross credit touched Rs.171,317crore, recording a growth of 18.37% with

domestic credit recording a growth of 17.20% to reach level of

Rs.135,194crore.

Priority Sector lending constituted 46.39% of Net Adjusted Bank Creditand the share of Agricultural Credit to Net Adjusted Bank Credit was

16.24%.

Credit to SME sector grew from Rs.25,441crore to Rs.29,568crore

recording a growth of 16.22%.

Export Credit registered a growth of Rs. 602crore, i.e., 9.98% growth

over previous year.

8/8/2019 BCB GR-8 PPT

26/38

Capital Adequacy Ratios

2009 2010

Basel II Basel II

Tier I Capital 12466 13725

Tier II Capital 5745 7218

Total Capital 18211 20943

Total Assets 225502 274967

Risk Weighted Assets 139931 161857

CRAR -Tier I (%) 8.91 8.48

CRAR -Tier II (%) 4.10 4.46

CRAR (%) 13.01 12.94

8/8/2019 BCB GR-8 PPT

27/38

CAPITAL ADEQUACY RATIO - CAR (%)

8/8/2019 BCB GR-8 PPT

28/38

New Products & Services


All domestic branches are covered under Core Banking Solution. All

domestic branches are RTGS/NEFT enabled.

Call centre facility is made operational which would act as a Contact

centre and is a cost effective touch point for customers.

Bank has launched the Marathi version of its web-site.

Bank has launched Welcome Kit for all new accounts opened at the

select branches.

A web based Customer Complaint Management System has been made

live from 1st January, 2010 to reduce the response time.

Oracle Marketing Online product has been implemented at Data

Warehouse for communicating with customers via email.

8/8/2019 BCB GR-8 PPT

29/38

Contd


SMS alert facility has been introduced and provided to all customers for

all debit transactions from delivery channels.

Bank of India is the first PSU Bank in India to implement TWO-Factor

Authentication (2FA) Star Token for both Retail and Corporate internet

banking customers as an additional security measure.

Resetting or Unblocking of Internet Banking login password can be done

using Debit-cum-ATM card PIN.

Transaction under taken through Credit Card can be viewed through

Internet Banking channel.

Provision to make online bid-cum-application for Application Supported

by Blocked Amount (ASBA) IPO issues by Retail Internet Banking Customers.

8/8/2019 BCB GR-8 PPT

30/38

Contd


Mobile Banking Services extended to all retail internet banking

customers.

Bank has joined National Financial Switch (NFS) which enables customers

to access more than 50,000 ATMs.

Technology has been leveraged in some important projects like Financialinclusion project for Banking the unbanked sector, Solar Power Project

which is Eco-friendly for Technology Power for Rural Areas, V-sat

Connectivity Project Networking / connecting the Rural / Remote

locations.

Bank launched Star Abhilasha Biometric Smart Cards in 2010

8/8/2019 BCB GR-8 PPT

31/38

8/8/2019 BCB GR-8 PPT

32/38

8/8/2019 BCB GR-8 PPT

33/38

Latest News


Bank has been ranked 8th in TOP 50 SERVICE BRANDS in The Most Trusted Brands

Survey 2010 and 2nd among all Public Sector Banks.

The Managing Committee of the IBA has appointed Shri Alok K Misra, Chairmanand Managing Director, BOI as Deputy Chairman of the Association.

BOI appointed Shri. N. Seshadri as Executive Director of the Bank. He has taken

over charge on November 01, 2010.

Bank of India has revised Deposit Rates in some maturities, effective fromNovember 01, 2010@ 7%

The Bank has posted a net profit of Rs 6167.80 million for the quarter ended

September 30, 2010 as compared to Rs 3233.40 million for the quarter endedSeptember 30, 2009

8/8/2019 BCB GR-8 PPT

34/38

Contd


BOI Net Rises 91% 23-OCT-10

BOI, the countrys fifth-biggest public sector bank by market capitalization,reported a 91 per cent rise in net profit in the second quarter as it gave more

loans and its net interest income and margins improved.

BOI to recast Rs 725 cr airlines bad debts soon 22-OCT-10

Vijay Mallya owned Kingfisher Airlines accounts for around Rs 500 crore of the

Rs 725 crore of stressed airline loans that BOI has on its books, which will be

recast before the end of December, a senior bank official said here today.

BOI targets Rs 4500 cr business 01-OCT-10

BOI has targeted a business volume of Rs 4500 crore in 2010-11 from its

operations in the Bhubaneswar zone.

BOI can raise Rs 7,000 cr from bonds: CMD 07-SEP-10

State-owned Bank of India today said it can raise up to Rs 7,000 crore from

bonds to fund business growth.

BOI hikes interest rates on deposits by 50-100 bps 06-DEC-10BOI informed the stock exchanges today about an upwards revision in the

interest rates on deposits in some maturities by about 100 basis points. The

new rates will be effective from today.

8/8/2019 BCB GR-8 PPT

35/38

Opportunities


Recovery in global output and trade is expected to be strengthened in

2010 and as projected by IMF, output is expected to grow by 3.9% and

trade volume is to expand by 5.8%.

Similarly, domestically, Indias GDP growth is expected to exceed 8

percent in FY 2011 against 7.4 percent in FY2010.

The industrial sector is growing at over 10 percent and exports sector has

witnessed positive growth trend. These positive developments provide

opportunities for banks to expand their activities.

The pick up in consumption and investment demand and the

Governments thrust on investment in infrastructure sector will provide

impetus to the bank credit growth.

The stress on inclusive growth and financial inclusion will create enabling

environment for expansion of banking facilities.

8/8/2019 BCB GR-8 PPT

36/38

Challenges


With the inflation rising to double digit, which may necessitate certainrestrictive monetary measures, there is expected to be pressure on

interest rate. Among others, the challenges confronting banking sector

during 2010-11, include the following ones:

Improving NIM by keeping the overall of cost of deposits down by

expanding CASA base and improving yield on advances by prudentdeployment of resources among various portfolios.

Expansion of credit portfolio, which have shown a deceleration in growth

during 2009-10.

Pro-active NPA management, by arresting further slippages and

augmenting recovery efforts.Ensuring growth in profitability by steady increase in noninterest income

in light of pressure on NIM.

Increasing capital base to keep pace with the asset growth so as to

maintain a healthy capital adequacy ratio.

8/8/2019 BCB GR-8 PPT

37/38

Strategy ~ Road Map for 2011


20% incremental growth in MSE /MSME credit portfolio.

Reducing gross NPA level to below 2% (presently 2.85%).

Identifying and financing at least 100 new clusters @ 2 cluster per

zone.

Doubling SME branches share in total MSE advances to 20% from

the present level of less than 10% (9.38%).

Covering 25000 new accounts under CGTMSE guarantee scheme.

Increasing the flow of credit to Micro sector borrowers.

8/8/2019 BCB GR-8 PPT

38/38

Ref:Doug Ready Linda Hill and Jay Conger - HBR Nov08

bcb gr-8 ppt

Documents