Submitted by –Gautam Gulati , Kapil Manwani , Rashmi Sharma , Mohit Motwani , Ankitha Singavi

Bank Of Baroda•Third largest Public Sector bank in India, after State Bank of India and Punjab National Bank•Founded in 1908•Headquartered at Baroda•It has total of 3159 branches including 70 overseas•Has a total staff of 38063 •CMD of BOB is M.D.Mallaya

Mission Statement

To be a top ranking National Bank of International Standards committed to augmenting stake holders' value through concern, care and competence.

History 1908: Maharaja Sayajirao Gaekwad III set up Bank of

Baroda (BOB).

1910: established its first branch in Ahmedabad

1953: established a branch in Mombasa and another

in Kampala

1959: acquired Hind Bank.

1961: merged in New Citizen Bank of India. This

merger helped it increase its branch network

in Maharashtra

1963: acquired Surat Banking

Corporation in Surat, Gujarat.

1964: acquired two banks, Umbergaon People’s

Bank in southern Gujarat and Tamil Nadu Central

Bank in Tamil Nadu state.

1969: The Government of India nationalized 14 top

banks, including BOB

History contd. 1975: BOB acquired the majority shareholding

and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh

1998:BOB also acquired Punjab Cooperative Bank in a rescue.

1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi.

2007: In its centenary year, BOB's total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people.

2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand 

Services

Apart from the Loans, Deposits, Credit and Debit Cards, Bank of Baroda offers other services to make financial dealings easy and convenient.

DematBaroda healthRemittances(baroda money express)Collection servicesECS(electronic clearing services)Government business(PPF , tax

collection and savings bonds)

Subsidiaries

Domestic◦Bobcards ltd.◦BOB capital markets ltd.◦Nanital bank ltd.

Subsidiaries

Overseas Bank of Baroda (Botswana)

Ltd. Bank of Baroda (Kenya) Ltd. Bank of Baroda (Uganda) Ltd. Bank of Baroda (Guyana) Ltd. Bank of Baroda (UK) Ltd. Bank of Baroda (Tanzania) Ltd Bank of Baroda (Trinidad & Tobago) Ltd.Bank of Baroda (Ghana) Ltd.

Strategic initiative(2008-09) The Bank’s focus was optimise human resource

management in a highly motivating work

environment, rawing maximum mileage out of the

available Information Technology and mbibing a full-

fledged marketing culture to promote a sense of

professionalism in approach and attitude.

BOB completed Core Banking Solution (CBS) rollout in

1,922 domestic branches covering 94% of its

business as at 31st March, 2009.

The Bank launched several new IT products and

services such as Phone Banking, Corporate Cash

Management System, Payment Messaging Solution

and Global Treasury.

the Bank took many initiatives introducing new

products both on assets and liability sides during

2008-09 such as Loan for Earnest Money Deposit,

Baroda Additional Assured Advance to NRIs, Baroda

Bachat Mitra etc.

In its role as a partner to the rural development, the Bank, besides meeting all its credit deployment targets, established four Baroda Swarojgar Vikas Sansthan during the year 2008-09 for imparting training to the unemployed youth and facilitating their gainful self-employment.

It organised awareness programmes for SME borrowers to educate them about various products, services and precautionary steps to be taken in view of global financial crisis.

ASSETS

Total assets increased by 26.66% to Rs. 2.27 bn at year-end fiscal 2009 from Rs. 1.79 bn at year-end fiscal 2008.

Total investments at year-end fiscal 2009 increased by 19.5% due to

Increase in investment in Govt securities and Debentures and Bonds in the fiscal year 2009.

While there has been an decrease in investment in Shares and Other approved securities.

The Cash balances have increased from Rs 93697.23 mn in the fiscal year 2008 to Rs 10593.43 mn in the fiscal year 2009.

The balances with RBI in Current Account has also increased .

There has been an increase in deposit outside India in the form of Bank balances and Money at call from Rs 86020.43 mn in the fiscal year 2008 to Rs 120873.58 mn in the fiscal year 2009.

o Increase in net advances by 34.9% to Rs. 1.43 bn at year-end fiscal 2009 from Rs. 1.067bn at year-end fiscal 2008 due to increase in advances inside and outside India.

Non Performing Asset (NPA)

Under the RBI guidelines, an asset is classified as non-performing if any amount of interest or principal remains overdue for more than 90 days, in respect of term loans. In respect of overdraft or cash credit, an asset is classified as non-performing if the account remains out of order for a period of 90 days and in respect of bills, if the account remains overdue for more than 90 days.

Based on the criteria stipulated by the RBI NPAs are classified into

sub-standard, doubtful and loss assets.

AdvanceCategory(Gross)

31st March 2009

Percentage of Total

31st March 2008

Percentage of Total

Standard 143001.94 98.73 105690.44 98.16

Loss 345.34 0.24 366.12 0.34

Doubtful 832.32 0.57 887.65 0.82

Sub Standard

665.26 0.46 727.61 0.68

Gross NPA 1842.92 1.27 1981.38 1.84

Total 144844.86 100 107671.82 100

LIABILITIES

Capital & Liabilities

 

Capital 1 365,52,77 365,52,77

Reserves & Surplus 2

124700135 10678,39,91

Deposits 3 1923969517 152034,12,72

Borrowings 4 5636,08,59 3927,04,80

Other Liabilities & Provisions

5 16538,14,66 12594,41,42

Total   227406,72,54 179599,51,62

CAPITAL

SCHEDULE - 1 CAPITAL (000's omitted)

 As on 31st March,

2009As on 31st March,

2008  Rs. Rs. Rs. Rs.AUTHORISED CAPITAL        150,00,00,000 Equity Shares of Rs.10/- each

  1500,00,00   1500,00,00

ISSUED & SUBSCRIBED CAPITAL        

36,70,00,000 Equity Shares of Rs.10/- each (previous year 36,70,00,000/- equity shares of Rs. 10/- each)

  367,00,00   367,00,00

36,42,66,500 (Previous Year 36,42,66,400) Equity Shares of Rs.10 each including 19,60,00,000 Equity Shares (Previous year 19,60,00,000 Equity Shares) amounting to Rs.196 crores held by Central Government

  364,26,65   364,26,64

Add: Forfeited Shares   1,26,12   1,26,13

TOTAL   365,52,77   365,52,77

Reserves and Surplus% Increase: 6.75%

SCHEDULE – 2 RESERVES & SURPLUS

(000's omitted)

  As on 31st March, 2009 As on 31st March, 2008  Rs. Rs. Rs. Rs.I Statutory Reserves        

Opening Balance 2230,37,10   1871,49,06  Additions during the year 556,80,05 2787,17,15 358,88,04 2230,37,10II  Capital Reserves (including revaluation reserve)        Opening Balance 1789,93,47   402,19,30  Additions/ Adjustments during the year * 362,05,56   85,07,80  * [After adjustment of Exchange fluctuation Rs.(37998)(Previous year 4295)]

2151,99,03   487,27,10  

Additions during the year on account of revaluation of properties

-   1377,74,38  

Deductions:    Depreciation on revalued fixed assets transferred to Profit & Loss account

72,40,75 2079,58,28 75,08,01 1789,93,47

III  Share Premium        Opening Balance 2273,88,53   2273,88,43  Additions/Adjustments during the year 3 2273,88,56 10 2273,88,53IV Revenue & Other Reserves        a) Statutory Reserve (Foreign)    Opening Balance 74,60,02   77,58,50  Additions during the year 1,17,48   70,30  Other Adjustments 16,57,63   -3,68,78  

92,35,13   74,60,02  b) Special Reserve u/s 36(1)(viii) of Income Tax Act      Opening Balance -   -  Add: Transferred from General Reserve 200,00,00   -  Add: Additions during the year for FY 2008-09 220,00,00   -  

420,00,00   -  c) Other Reserves    Opening Balance 4309,60,79   3659,25,71  Transferred to Special Reserve u/s 36(1)(viii) for F.Y 2007-08

200,00,00   -  

Additions/Adjustments during the Year 707,41,44   650,35,08  4817,02,23   4309,60,79  

TOTAL - IV (a, b & c)   5329,37,36   4384,20,81TOTAL (I to IV)   12470,01,35   10678,39,91

increase16.77%

DEPOSITS

SCHEDULE - 3 DEPOSITS (000's omitted)

  As on 31st March, 2009 As on 31st March, 2008

  Rs. Rs. Rs. Rs.A.  I  Demand Deposits           i)  From Banks 682,99,04   616,16,58  

   ii)  From Others 13768,23,44 14451,22,48 11079,83,97 11696,00,55

II  Savings Bank Deposits   42487,27,78   35776,38,18

III  Term Deposits           i)  From Banks 16887,48,83   13416,55,88  

   ii)  From Others 118570,96,08

135458,44,91 91145,18,11 104561,73,99

TOTAL (I to III)   192396,95,17   152034,12,72

B.  I  Deposits of branches in India 151408,98,64

  122479,35,32

 

     II  Deposits of branches outside India 40987,96,53   29554,77,40  

TOTAL (I & II) 192396,95,17

  152034,12,72

 

increase 26.54%

Borrowings increase 43.51%

SCHEDULE - 4 BORROWINGS

(000's omitted)

  As on 31st March, 2009 As on 31st March, 2008

  Rs. Rs. Rs. Rs.

  Borrowings in India        

   i)  Reserve Bank of India   2700,00,00   -

   ii)  Other Banks   17,17,26   18,57,54

   iii) Other Institutions and Agencies   442,94,17   670,56,83

TOTAL   3160,11,43   689,14,37

 Borrowings outside India   2475,97,16   3237,90,43

Total - Borrowings   5636,08,59   3927,04,80

Secured Borrowings included in above   242,94,17   740,22,47

RATIO ANALYSIS

Profitability Ratios 2008-09 2007-08

Return On Equity 6.09% 3.927%

Return on Asset 1.09% 0.89%

Interest Spread 4.02% 4.21%

Cost Income Ratio 45.38% 50.89%

Net interest margin 2.91% 2.90%

Credit-Deposit Ratio

82.36% 77.52%

ANALYSISBank’s Cost income ratio

decreased to 45.89% from previous yrs 50.89% highlighting that banks costs are rising but its interest income are rising at a higher rate.

There is a increase in return on asset depicting that assets were more efficiently employed in 08-09 when compared to 07-08.

ASSET QUALITY RATIOS

2008-2009 2007-2008

NPA Coverage 75.52% 69.25%

Total Capital Adequacy Ratio

12.88% 12.91%

Interest Income to AWFs 7.78% 7.63%

Net NPAs to net advances

.31% .47%

ANALYSIS The Bank delivered a stellar

performance in asset quality management in 2008-09 despite a severe industrial slowdown.

Through well coordinated and sustained efforts, the Bank’s Global Gross NPA level was brought down from 0.47% to 0.31% in the course of one year.

Not not only the Gross NPA and Net NPA were brought down in percentage terms but were also reduced in absolute terms to Rs 1,842.92 crore and Rs 451.15 crore as at end-March, 2009 from the opening portfolio of Rs 1,981.38 crore and Rs 493.55 crore respectively

PERFORMANCE HIGHLIGHTSTotal Business (Deposit+Advances)

increased to Rs 3,36,383 crore reflecting a growth of 30.01%.

Gross Profit and Net Profit were Rs 4,305.01 crore and Rs 2,227.20 crore respectively. Net Profit registered a growth of 55.2% over previous year.

Retail Credit posted a modest growth of 16.3% constituting 17.8% of the Bank’s Gross Domestic Credit in FY09.

Net Interest Margin (NIM) as per cent of interest earning assets was at the level of 2.91%.

Contd...Net Worth improved to Rs 11,387

crore registering a rise of 19.52%.Book Value improved from Rs

261.54 to Rs 312.61 on year.Business per Employee moved up

from Rs 710 lacs to Rs 914 lacs on year.

Comparison between BOB n PNB

V/S

Comparison on the basis on Ratios

0

5

10

15

20

25

7.48

19.37

1.79

9.628.71

24.22

1.92

9.75

bank of barodapnb

ASSETS

BOB PNB0

50000

100000

150000

200000

250000

300000

179,599.51203,744.46

227,406.72253,612.42

2007-082008-09

26.61%

24.47%

Deposits

bank of baroda

pnb0

5

10

15

20

25

3026.5 26

% Change in deposits

% Change in deposits

Advances

Bank of Baroda

Pnb10

15

20

25

30

35

4034.94

31.01

% Change in advances

% Change in advances2

THE ROAD AHEAD During 2009-10, the Bank is targeting to

achieve the total business growth of about 20.0% to 22.0%.

Will focus on low-cost deposits, by prudent management of cost of resources and by making every possible effort to protect the asset quality with a firm control on the process of credit origination.

It will place additional emphasis on business process reengineering to reduce transaction costs and will try to add at least 2.5 to 3.0 million quality customers during the year.

During 2009-10, the emphasis would, inter alia, be on improving the share of Retail / SME / Agriculture in total business without any compromise on the asset quality.

Reorienting its systems and procedures towards customer convenience and enhanced customer satisfaction.

Formulating and adhering to the best corporate governance practices.

Focusing on a consistent and broad-based resource mobilization plan.

Enlarging the base of retail customers by leveraging technology and taking newer technology based initiatives.