1. Presentation to Analysts
Performance Highlights
( Apr-Dec & Q3, ) by
Dr Rupa Rege Nitsure
Chief Economist
January 27, 2010

2. Bank of Baroda: Key Strengths
Bank of Baroda is a 101 years old State-owned Bank with modern and contemporary personality, offering banking products and services to industrial and commercial, retail and agricultural customers across the country.
Modern & Contemporary
Personality
Uninterrupted Record
in Profit-making and
Dividend Payment
Overseas Business
Operations extend across
25 countries
through 78 Offices
Strong Domestic
Presence through
3,050 branches
Pioneer in many
Customer-Centric
Initiatives
Provides Financial
Services to over
35.20 million customers
globally
First PSB to receive
Corporate Governance
Rating (CAGR-2)
Relatively Strong Presence
In Progressive States like
Maharashtra & Gujarat
All Domestic Operations
Covered under
the CBS
A well-accepted &
recognised Brand in
Indian banking industry

3. Domestic Branch Network
Bank’s network of domestic branches as on 31st Dec., 2009 was 3,050 & no. of ATMs were 1,238.
During Apr-Dec, FY10, Bank opened 128 new branches & merged four existing branches.
Around 36.7% of the Bank’s branch network is located in rural areas.
New branches are primarily opened in Metro, Urban & Semi-Urban areas in Southern States, UP & Uttaranchal, Gujarat & Maharashtra.
Bank proposes to open 50 more branches during FY10.
Regional Break-up of
Domestic Branches as on 31st Dec, 2009
Metro
Urban
Semi-Urban
Rural
658
575
699
1,118

4. Robust Technology Platform
Bank achieved 100.0% CBS implementation in its domestic operations on 19th Sept’09.
Additionally, 43 br. in 12 overseas territories & 27 br. in seven overseas subsidiaries covering 79.0% of total overseas business is also on the CBS.
All CBS branches are enabled for inter bank remittances through RTGS and NEFT.
Bank’s customers enjoy facilities like internet banking, phone banking, rapid funds2india – an online money transfer service, e-tax payment, NEFT/RTGS thru’ e-banking, sms alerts, etc.
 Global Treasury Solution is implemented in UK, UAE, Baharain, Hong Kong & India.
Bank has made operational Corporate Cash Mgmt Services in all major cities of India
Back office functions have been centralised for the branches & two regional back offices at Baroda & Jaipur have commenced operations for centralised account opening & issuance of personal cheque-books.
AML System has been implemented in India & 14 overseas territories.
Bank has introduced HRNES System comprising a Centralised-Database of its employees, which enables speedy decision-making, promotions, selection, etc. through automated processes.
Payment Messaging Solution has been implemented in 13 overseas territories & all B category branches in India.
A module for School Fee Collection has been implemented.
Debit cards are now CVX2 enabled for online payment & 3D Secure (3DS) has been implemented.
Online trading facility was launched for institutional trading on 17th October, 2009.

5. Concentration (%): Domestic Branch Network

6. Pattern of Shareholding: 31st Dec, 2009
As on 31st Dec, 2009
Share Capital Rs crore
No. of Shares million
Net worth Rs 13, crore
B. V. per share Rs
Return on Equity (annualised): %
BOB is a Part of the following Indexes
BSE 100, BSE 200 and BSE 500
Nifty Junior and Bankex.
BOB’s Share is listed on BSE and NSE in ‘Future and Options’ segment also.

7. Comparative Performance of BoB Stock: Apr-Dec’09
Index/Stock
Value
(31st Mar’09)
(31st Dec’09)
% Change
(Value)
Sensex
9,708.50
17,464.81
79.9%
Nifty
3,020.95
5,201.05
72.2%
Bankex
4,490.97
10,030.80
123.4%
BankNifty
4,133.20
9,029.50
118.5%
BoB-BSE
234.55
511.30
118.0%
BoB-NSE
234.35
513.95
119.3%

8. Indian Macro Scene: Apr-Dec’09

9. Indian Macro Scene: Apr-Dec’09
Macro scenario was quite mixed during Apr-Dec’09.
While there was a sharp deceleration in kharif foodgrain production (-16.2%) due to erratic & poor rainfall, the growth in industry (7.6% in Apr-Nov’09) & services (9.3% in Jul-Sept’09) sectors was quite strong.
Demand conditions remained weak as reflected in a decline of 5.8% (y-o-y) in Apr-Sept’09 in Corporate Sales and a fall of 18.0% (y-o-y) in Indirect Tax Collections during Apr-Dec’09.
Capital market activity remained strong on the back of a turnaround in industrial growth and robust capital inflows. During Apr-Dec’09, FIIs’ total investment in India (both equity & debt) was US $ bln.
FDI too remained strong. India attracted Foreign Direct Investment (FDI) to the tune of US $19.38 bln during Apr-Nov’09.
Growth in non-food credit of SCBs was subdued during Apr-Dec’09, partly reflecting weaker investment demand. Whereas it grew by 7.1% over Mar’09, by just 12.1% on year.
On the back of strong local shares, buoyant private capital inflows & weakening of the USD against all major currencies, Rupee appreciated by 8.10% against the USD during Apr-Dec’09.
Food price inflation (close to 20.0% on year in Dec’09) has emerged as a major policy concern.
Globally, Crude Price rose by almost 52.0% during Apr-Dec’09 from $52.38 to $79.36 per barrel – creating another strain on our fiscal balances.

10. BoB’s Business Growth (Y-O-Y): Dec’05 to Dec’09

11. Profits for Nine Months: Apr-Dec: FY06 to FY10
Net Profit has grown at a CAGR of 36.6% between Dec’05 & Dec’09

12. Asset Quality: Dec’04 to Dec’09

13. Business Performance: Dec’09 over Dec’08
Particular
(Rs crore)
Dec’08
Dec’09
% Change
Global Business
2,95,091
3,71,288
25.8%
Domestic Business
2,33,855
2,82,159
20.7%
Overseas Business
61,236
89,130
45.6%
Global Deposits
1,68,616
2,15,117
27.6%
Domestic Deposits
1,36,516
1,66,159
21.7%
Overseas Deposits
32,100
48,958
52.5%
Global CASA Deposits
53,454
66,584
24.6%
Domestic CASA
49,283
61,385
Overseas CASA
4,171
5,199
24.7
Share of Domestic CASA consistently improved from 35.09% at endJun’09 to 36.17% at end-Sept’09 to 36.94% at end-Dec’09.

14. Business Performance: Dec’09 over Dec’08
Particular
(Rs crore)
Dec’08
Dec’09
% Change
Global Advances (Net)
1,26,475
1,56,171
23.5%
Domestic Advances (Net)
97,339
1,16,000
19.2%
Overseas Advances (Net)
29,136
40,171
37.9%
Out of Gross Domestic Credit,
Retail Credit
Of which:
18,805
22,301
18.6%
Home Loans
7,937
9,810
23.6%
SME Credit
13,710
20,233
47.6%
Farm Credit
15,655
18,803
20.1%
Credit to Weaker Sections
7,356
10,041
36.5%

15. Business Performance: Dec’09 over Dec’08
Particular
(Rs crore)
Dec’08
Dec’09
% Change
Global Saving Deposits
40,181.32
49,542
23.3%
Domestic Savings Deposits
39,043
48,175
23.4%
Overseas Savings Deposits
1,139
1,367
20.1%
Global Current Deposits
13,273
17,042
28.4%
Domestic Current Deposits
10,240
13,210
29.0%
Overseas Current Deposits
3,033
3,832
26.4%

16. Profits & NII: For Nine Months & Q3, FY09 & FY10
Particular
(Rs crore)
Apr-Dec,
FY09
FY10
% Change
Gross Profit
2,905.51
3,306.48
13.8%
Net Profit
1,474.51
2,152.05
46.0%
Net Interest Income
3,652.62
4,194.53
14.8%
Oct-Dec,
1,345.64
1,264.95
-6.0%
708.37
832.49
17.5%
1,461.84
1,601.23
9.5%
Net Profit for Q3, FY09 includes the exceptional income of Rs cr & Net Profit for Apr-Dec, FY09 includes Rs cr due to winding up/dilution of Bank’s holdings in its subsidiaries.

17. Key Financial Ratios : Apr-Dec, 2009-10
Return on Average Assets at 1.20% [1.04% at end-Dec, 2008]
Earning per Share (annualised) at Rs [Rs at end-Dec, 2008]
Book Value per Share at Rs [Rs at end-Dec, 2008]
Return on Equity (ROE) at 21.20% [17.85% at end-Dec, 2008]
Capital Adequacy Ratio at 14.65% with Tier I Capital at 9.31%
Cost-Income Ratio increased from 40.49% to 44.05%(Y-o-Y).
Gross NPA ratio declined from 1.50% to 1.43% (Y-o-Y).
Net NPA ratio declined from 0.37% to 0.31%(Y-o-Y).
NPA Coverage improved to 78.42% [75.41% last yr] on prudent provisioning.

18. Other Highlights: Apr-Dec, FY09 & FY10
Particular (In %)
Apr-Dec’08
Apr-Dec’09
Global Cost of Deposits
5.73
5.11
Domestic Cost of Deposits
6.25
5.80
Overseas Cost of Deposits
3.52
2.54
Global Yield on Advances
9.58
8.71
Domestic Yield on Advances
10.94
10.17
Overseas Yield on Advances
5.21
4.47

19. Other Highlights: Apr-Dec, FY09 & FY10
Particular (In %)
Apr-Dec’08
Apr-Dec’09
Global Yield on Investment
7.18
6.71
Domestic Yield on Investment
7.30
6.92
Overseas Yield on Investment
5.88
3.96
Global NIM
2.94
2.65
Domestic NIM
3.17
2.96
Overseas NIM
1.97
1.48
NIM indicates Net Interest Income as % of Avg. Interest Earning Assets.

20. Other Highlights: Oct-Dec, FY09 & FY10
Particular (In %)
Oct-Dec’08
Oct-Dec’09
Global Cost of Deposits
5.95
4.69
Domestic Cost of Deposits
6.45
5.36
Overseas Cost of Deposits
3.78
2.24
Global Yield on Advances
9.91
8.60
Domestic Yield on Advances
11.25
10.21
Overseas Yield on Advances
5.58
3.96

21. Other Highlights: Oct-Dec, FY09 & FY10
Particular (In %)
Oct-Dec’08
Oct-Dec’09
Global Yield on Investment
7.87
6.65
Domestic Yield on Investment
7.97
6.87
Overseas Yield on Investment
6.78
3.76
Global NIM
3.30
2.95
Domestic NIM
3.61
3.40
Overseas NIM
2.08
1.37
Sequentially, the NIM has improved from 2.37% in Q1, FY10 to 2.63% in Q2, FY10 to 2.95% in Q3, FY10 in global operations & from 2.57% to 2.89% to 3.40% in domestic operations.

22. Non-Interest Income: Apr-Dec, FY09 & FY10
(Rs crore)
Apr-Dec, 2008
Apr-Dec 2009 %
Change
Comm., Exchange, Brokerage
491.62
623.95
26.9%
Incidental Charges
256.19
224.41
-12.4%
Profit on Exchange Transactions
286.01
279.26
-2.4%
Recovery from PWO
180.54
182.05
0.8%
Trading Gains
504.28
516.43
2.4%
Other Misc. Income
90.37
131.92
46.0%
Total Non-Interest Income
1,809.01
1,958.02
8.2%

23. Non-Interest Income: Oct-Dec, FY09 & FY10
(Rs crore)
Oct-Dec, 2008
Oct-Dec, 2009 %
Change
Comm., Exchange, Brokerage
172.87
230.92
33.6%
Incidental Charges
84.27
82.25
-2.4%
Profit on Exchange Transactions
136.70
98.71
-27.8%
Recovery from PWO
82.36
65.50
-20.5%
Trading Gains
346.79
139.30
-59.8%
Other Misc. Income
23.50
42.97
82.9%
Total Non-Interest Income
846.49
659.65
-22.1%

24. Provisions & Contingencies: Apr-Dec, FY09 & FY10
(Rs crore)
Apr-Dec’08
Apr-Dec’09
Provision for NPA / Bad Debts Written-off
101.32
723.63
Prov. For Dep. on Investment
570.42
Prov. For Std. Adv.
59.66
27.42
Other Provisions (including Prov. For staff welfare)
20.92
11.25
Tax Provisions
773.69
834.56
Total Provisions
1,526.01
1,154.43

25. Provisions & Contingencies: Oct-Dec, FY09 & FY10
(Rs crore)
Oct-Dec’08
Oct-
Dec’09
Provision for NPA/ Bad debts written-off
100.10
242.95
Prov. For Dep. on Investment
232.87
-21.56
Prov. For Std. Adv.
3.80
17.35
Other Provisions (including Prov. For staff welfare)
13.32
3.75
Tax Provisions
356.25
189.97
Total Provisions
706.34
432.46

26. Treasury Highlights: As on 31st Dec., 2009
Treasury Income was marginally up 0.7% from Rs crore in Apr-Dec, FY09 to Rs crore in Apr-Dec, FY10.
As of Dec 31st 2009, the share of SLR Securities in Total Investment was 86.91%.
The Bank had 79.45% of SLR Securities in HTM and 19.94% in AFS at end-Dec 2009.
The per cent of SLR to NDTL as on 31st Dec., 2009 was 27.57%.
While the modified duration of AFS investments is years; that of HTM securities is years.
Total size of Bank’s Domestic Investment Book as on 31st Dec 2009 stood at Rs 53,854 crore.
Total size of Bank’s Overseas Investment Book as on 31st Dec 2009 stood at Rs 3,803 crore.

27. Overseas Business: Apr-Dec, 2009-10
In Apr-Dec, FY10, the “Overseas Business” contributed 24.0% to the Bank’s Total Business, 21.6% to its Gross Profit and 41.7% to its Fee-based income.
While the Cost-Income Ratio for Domestic Operations stood at 50.47% in Apr-Dec, FY10, it was just 22.23% for Overseas Operations.
While the Gross NPA (%) in Domestic Operations stood at 1.73% at end-Dec, 2009, that for Overseas Operations was just 0.53%.
“Gross Profit to Avg. Working Funds” ratio for Overseas Operations was 1.57% in Q3, FY10 comparable to 2.22% for Domestic Operations.
On the Overseas Investment Book of Rs 3,803 crore, the Bank held Provisions worth Rs crore during Apr-Dec, FY10.

28. Capital Adequacy & Capital Raising: Apr-Dec, FY10
Bank’s CRAR as on 31st Dec, 2009 stood at 14.65%; of which Tier1 was at 9.31% and Tier 2 at 5.34%.
The size of Bank’s risk-weighted assets as on 31st Dec, 2009 was Rs 1,50,800 crore.
Bank proposes to maintain its CRAR in the band of 13.0% to 13.5% in the coming years (with the Tier 1 at 8.5% to 9.0%).
Bank has raised Rs 1,900 crore during Apr-Dec, FY10 by way of the following issues.
Subordinated Upper Tier II Bonds: Rs 500 crore in June, 2009
Subordinated Upper Tier II (Fixed Rate) Bonds: Rs 500 crore in July 2009.
Fixed Rate Perpetual Bonds (Innovative): Rs 300 crore in Oct, 2009
Fixed Rate Perpetual Bonds (Innovative): Rs 600 crore in Nov, 2009

29. NPA Movement (Gross): Apr-Dec, 2009-10
Particular
Amount in Rs crore
A. Opening Balance
1,842.92
B. Additions during Apr-Dec, FY10
1,216.00
Out of which, Fresh Slippages
1,180.66
C. Reduction during Apr-Dec, FY10
798.64
Of which,
Recovery
275.93
Upgradation
187.68
PWO & WO
323.01
Exchange Difference
12.02
NPA as on 31st Dec, 2009
2,260.28
Recovery in PWO in Apr-Dec, FY10
182.05

30. Gross NPAs: Sectoral Break-up at end-Dec, 2009
Apr-Dec’08
Apr-Dec’09
Agriculture
2.25
3.45
Large & Medium Ind.
0.86
1.23
Retail
2.85
2.34
Housing
3.43
2.50
SME
2.79
2.91

31. Restructured Loans : April, 2008 to December, 2009
During 21 months (1 Apr’08 to 31 Dec’09), Bank has restructured 65,487 accounts amounting Rs 4, crore.
Within this, the loans worth Rs were restructured in Q3, FY10.
For the period of 21 months, out of the total amount restructured Rs 2, cr belonged to wholesale banking, Rs 1, cr to SMEs, Rs cr to retail and Rs cr to agriculture sector.
About 54 accounts above Rs 25 lakh restructured in & in first nine months of slipped during Apr-Dec, FY10 and they were worth just Rs crore.
Industry-wise break-up shows that-- Bank’s restructured accounts are well spread over different sectors, the major ones being cotton textiles, engineering goods, iron & steel, food processing, infrastructure, etc.
Bank has primarily helped genuine borrowers who suffered from temporary cash flow problems due to global crisis. These accounts are restructured looking into their internal strength & after ensuring their financial viability.

32. Sectoral Deployment of Credit in Apr-Dec, FY10
% share in Gross Domestic Credit
Agriculture
15.94%
Retail
18.91%
SME
17.16%
Trading plus Others
16.45%
Wholesale
31.54%
Total
100.0%

33. Emerging Economic Scenario
Global economic recovery, currently underway, is expected to slow later in 2010, as the impact of fiscal stimulus wanes.
According to the World Bank’s latest assessment, financial markets in developed countries remain troubled and private sector demand lags amid high unemployment.
However, Asia is much better placed as domestic demand in Asian countries is replacing exports as the main growth driver, led by China.
While India is likely to post the growth bet.’ 6.5% to 6.7% in FY10, the growth is expected to rebound to 8.0% in FY11 backed by stronger than expected growth momentum in industry & services.
Food inflation- a major macro concern for India.
With both growth & inflation heading towards 8.0%, the RBI would start normalising monetary policy from Jan 29th policy review.
Hence, upward pressure to continue on long-term yields.
Government’s gross borrowings are to stay substantial in FY11 and non-food credit growth will gradually pick up. We expect credit growth around 18.0% (y-o-y) in FY11.
Key risks: high food & oil prices, a double-dip, etc.
Positives: strong net capital inflows & early signs of investment rebound.

34. Bank’s Guidance & Vision
The Bank would continue with its thrust on growth with quality & try to grow at above industry average to steadily expand its market share.
The Bank would protect the current soundness of its key financials like ROAA, ROE, EPS, BVPS, NPL Position etc., through its dedicated focus on CASA Mobilisation, Efficient Pricing of Retail Deposits & Loans, Steady Reduction in Bulk Business and Credit Origination & Monitoring.
The Bank would try to grow its Fee-based Income in tandem with its Loan-Book growth.
The Bank is building Strong Foundation for Future Growth by
Recruiting the best possible talent in the country from the Premier Institutions
Working on BPR project in consultation with Mckinsey & Co. so as to achieve the optimum use of technology and right skilling of the manpower to yield maximum customer satisfaction.

35. Thank you.