1. Performance Highlights
Presentation to Media
Performance Highlights
( Q4 & ) by
Dr Rupa Rege Nitsure
Chief Economist
April 27, 2009

2. Bank of Baroda: Key Strengths
BoB is a leading 100 years old PSB in India with modern and contemporary personality, offering banking products and services to industrial and commercial, retail and agricultural customers across the country.
Overseas Business
Operations extend across
25 countries
through 74 branches/ Offices
Modern & Contemporary
Personality
Uninterrupted Record
in Profit-making and
Dividend Payment
Strong Domestic
Presence through
2,926 branches
Pioneer in many
Customer-Centric
Initiatives
Provides Financial
Services to over
36.5 million customers
globally
First PSB to receive
Corporate Governance
Rating (CAGR-2)
Steady Movement towards
International best practices –
Preparing financials under
US GAAP
Rapid & Significant
Technology Progression
Since FY06
A well-accepted &
recognised Brand in
Indian banking industry

3. Domestic Branch Network at End-Mar, 2009
The Bank has a network of 2,926 domestic branches as on 31st Mar, 2009
On net basis, the Bank has added 73 new branches to its domestic network by merging nine branches in FY09.
About 59.80% of the domestic branches are in rural/semi-urban areas.
The Bank proposes to open 168 new branches in FY10 primarily in Southern States, Gujarat, Greater Mumbai & UP & Uttaranchal.
Highest no. of new branches will be in Semi-Urban followed by Urban, Metro & Rural areas.
Regional Break-up of
Domestic Branches
Metro
Urban
Semi-Urban
Rural
637
540
649
1,100

4. Robust Technology Platform
By 31 Mar, 2009, Bank completed CBS Rollout in 1,922 domestic branches & 66 overseas offices. All CBS branches are enabled for inter bank remittances through RTGS and NEFT.
Bank rolled out Internet Banking in India & seven Overseas Territories. Payment of all taxes, utility bills & online booking of railway tickets has been enabled.
Bank’s ATM network increased to 1,179 with two Bio-metric ATMs in rural areas.
Bank launched Phone Banking Service country-wide on 19th March 2009.
Corporate Cash Mgmt system, Payment Messaging Solution, Implementation of enterprise-wide GL, Online HRM System, Implementation of Global Treasury are some of the new technology initiatives taken during FY09.

5. Concentration (%): Domestic Branch Network

6. Pattern of Shareholding: 31st Mar, 2009
As on 31st Mar, 2009
Share Capital Rs crore
No. of Shares million
Net worth Rs 11, 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. Business Growth: FY05 to FY09

8. Profits: FY05 to FY09
Bet.’ FY05 & FY08, Bank’s Net Profit has grown at the CAGR of 26.9%.

9. Asset Quality: FY03 to FY09
Gross NPAs (%)
Net NPAs (%)

10. Performance Highlights
Bank’s Achievements against the Guidance for FY09
(1) Business Growth with a Thrust on Asset Quality
Bank has expanded its loan-book at 34.9% (y-o-y) & yet managed to reduce its Gross NPA from Rs 1, crore at end-Mar’08 to Rs 1, crore at end-Mar’09. Even its Net NPA declined in absolute terms.
Bank’s Advances Portfolio has been increasing on a sustained basis under “Investment Grade with High safety”.
(2) Bank to exercise control over “Cost of Deposits” to protect the NIMs.
Bank could protect its Domestic CASA share around 34.87% by achieving a CASA growth of 20.0% in FY09.
Bank’s interest expenses’ growth in Q4: FY09 was controlled at 15.87%, as BPLR was reduced twice in tandem with Monetary Policy Signals.

11. Performance Highlights
Bank’s Achievements against the Guidance for FY09
Share of Bulk (including CDs) in Total Domestic Deposits was reduced from 24.0% in FY08 to 16.9% in FY09.
(3) Focus on High-yielding Advances
Average Yield on Domestic Advances improved from 10.46% in FY08 to 10.86% FY09.
(4) Thrust on Protecting the NIM
Bank’s Global & Domestic NIM (% of interest-earning assets) improved from 2.90% & 3.06% in FY08 respectively to 2.91% & 3.21% in FY09.
(5) Special Emphasis on Fee-based Income
Bank’s Core Fee-Based Income expanded at the unprecedented pace of 39.5% (y-o-y) to Rs 1,223 crore in FY09

12. Business Performance: FY09 over FY08
Global Business up 30.0%(Y-o-Y) to Rs 3,36,383 crore at end-Mar, 2009
Domestic Business up 26.0%(Y-o-Y) to Rs 2,60,692 crore
Overseas Business up 46.3%(Y-o-Y) to Rs75,691 crore
Global Deposits up 26.6%(Y-o-Y) to Rs 1,92,397 crore
Domestic Deposits up 23.6%(Y-o-Y) to Rs 1,51,409 crore
Overseas Deposits up 38.7%(Y-o-Y) to Rs 40,988 crore
Domestic CASA share 34.87% at end-March 2009
Global Advances up 34.9% (Y-o-Y) to Rs 1,43,986 crore
Domestic Advances up 29.3% to Rs 1,09,283 crore
Overseas Advances up 56.3% to Rs 34,703 crore

13. Business Performance: FY09 over FY08
Retail Credit up 16.3%(Y-o-Y) to Rs 19,651 crore at end-Mar 2009
Retail Credit now forms 17.9% of Gross Domestic Credit
Home Loan Book up 13.5%(Y-o-Y) to Rs 8,265 crore
SME Credit up 24.2% (Y-o-Y) to Rs 14,662 crore
Farm Credit up 27.9% (Y-o-Y) to Rs 16,964 crore
Priority Sector Credit up 23.9%(Y-o-Y) to Rs 39,239 crore
Bank’s credit to weaker sections was up 35.1% (Y-o-Y) to Rs 8,156 crore.
Bank’s micro-credit to SHGs was up 43.5% (Y-o-Y) to Rs 606 crore.

14. Key Financial Ratios : Apr-Mar, 2008-09
Return on Average Assets (Return on Average Working Funds) at 1.15% [0.93% at end-Mar, 2008]
Earning per Share (annualised) at Rs [Rs in FY08]
Book Value per Share at Rs [Rs in FY08]
Return on Equity (ROE) at 19.56% [15.07% in FY08]
Capital Adequacy Ratio( Basel II) at 14.05%
Cost-Income Ratio declined from 50.89% to 45.38%(Y-o-Y).
Gross NPA ratio declined to 1.27% from 1.84% (Y-o-Y).
Net NPA ratio declined to 0.31% from 0.47%(Y-o-Y).
NPA Coverage improved to 75.52% on prudent provisioning

15. Operating Profits: FY08 and FY09
55.2%
82.6%
NII grew at 31.0% (Y-o-Y) in FY09 & at 43.0% (Y-o-Y) in Q4, FY09.

16. Net Profits: FY08 and FY09
55.2%
172.3%

17. Other Highlights: Apr-Mar, 2008-09
Net Interest Margin (as % of interest-bearing assets) in Global Operations at 2.91% and in Domestic Operations at 3.21% in
Cost of Deposits in Global Operations increased from 5.69% to 5.71%
Cost of Deposits in Domestic Operations increased from 5.91% to 6.30%
Cost of Deposits in Overseas Operations decreased from 4.76% to 3.29%
Yield on Advances in Global Operations declined from 9.53% to 9.50%
Yield on Advances in Domestic Operations improved from 10.46% to 10.86%
Yield on Advances in Overseas Operations declined sharply from 6.17% to 5.19%.
Yield on Investments in Global Operations improved from 6.55% to 7.05%.
Yield on Investments in Domestic Operations improved from 6.53% to 7.18% & in Overseas Operations declined from 6.48% to 5.68%

18. Other Highlights: Apr-Mar, 2008-09
Treasury Income (Profit on Sale of Investments) increased by 69.2% (Y-o-Y) to Rs 900 crore.
Fee-based Income (Commission, Exchange, Brokerage & Incidental Charges) improved by a strong 39.5% (Y-o-Y) to Rs 1,223 crore.
Cash Recovery (NPA & PWO) during FY09 stood at healthy Rs 830 crore despite severe industrial slowdown.
Profit from Exchange Transactions grew by a robust 33.3% (Y-o-Y) to Rs 372 crore.

19. Macro Scenario
Economic Scenario has worsened with sustained contraction in IIP & exports, widening of trade deficit & problems in fiscal consolidation
H1, FY10 will be relatively tougher than H2, FY10
RBI expects GDP growth at 6.5% - 6.7% in FY09 and 6.0% in FY10
RBI has pegged the M3 growth at 17.0%, Deposit mobilisation at 18.0% and Credit growth at 20.0% for FY10
Management of large government borrowings programme will be a critical challenge in FY10 and may militate against low interest rate environment.
On the positive side, some early signs of recovery are seen in auto, cement, steel sectors; railway freight has been increasing & business confidence surveys are indicating a reversal of sentiment
Agricultural outlook has turned optimistic & augurs well for rural consumption demand & SB mobilisation
EMEs still better destination for FII/FDI inflows.

20. Bank’s Guidance for
To continue with our thrust on “Growth with Quality” by focusing on CASA, by further reducing the dependence on Bulk Business & by protecting the Asset Quality with a firm control on the process of Credit Origination
To achieve the Business Growth of 23.0% to 25.0%% in FY10.
To protect the ROAA above 1.0% and ROE above 17.0% (already achieved in FY09) for FY10
To sustain the Cost-Income Ratio at 45.0% in FY10 & make efforts to lower it further
To maintain the growth of at least 25.0%-plus in core Fee-Based Income in FY10
To continue with our efforts to bring down Gross & Net NPA further despite challenging times ahead…

21. Thank you.