Bank of Baroda posts $US1.25 billion profit

Mumbai based Bank of Baroda continued its robust growth, posting a net profit of $US 1.25 billion as at the end of its financial year ending March 31, 2011.

The figure accounted for an impressive rise of 38.7% over the previous year’s net profit of $US 866.48 million.

Gross Profit moved up from $US 1.39 billion to $US2.05 billion (an increase of 43.8%), while the Return on Average Assets increased from 1.21% to 1.33%, and the earning per share rose to $US 2.61 (from $US1.87).

The Bank improved its Capital Adequacy Ratio from 14.36% to 14.52%.

Non-Performing Assets (NPA) in gross terms remained static at 1.36% as at the end of March 31, 2011, while the Net NPA showed a negligible increase from 0.34% to 0.35%, bearing no impact on the Bank’s financial position.

Chairman & Managing Director Mangalore Devadas Mallya attributed the Bank’s sterling performance to its strong capital and liquidity position, good liability franchise, improved credit culture and highly motivated management and staff.

“These factors have helped Bank of Baroda to gain market share consistently during the past three years amidst maintaining profitability and asset quality standards,” he said.

He said the Bank’s motto of ‘Business Growth through Sales & Service Excellence’ will witness all-round improvement during the current fiscal year.

“Our efforts to make Bank of Baroda ‘The Most Admired Bank” is continuous. We have responded to the challenges of heightened competition and to improve its position in the market place,” he said.

Mr Mallya said the Bank’s focus on business transformation has encouraged the management to take a number of pioneering steps.

The Bank is proud of its 39 million customers worldwide, he said.

“We understand the need to harness the human resources capabilities built in the bank over time and taking forward our Business Process Re-Engineering (BPR) initiatives. We will make active efforts to promote business growth through sales and service excellence by continuously working on our people and processes,” he said.

New Zealand Scene

The Bank of Baroda (NZ) Limited, a fully owned subsidiary of Bank of Baroda appeared to have performed well during its first full year of operations.

The subsidiary currently operates a single branch in Mt Eden Auckland but is due to open shortly a branch each in Manukau (South Auckland) and Wellington.

Satish Vermani, who left New Zealand for India on July 29 following the completion of his tour of duty, said that the first (and only branch) had registered satisfactory progress during the first year.

According to him, as at the end of June 30, 2011, the branch had deposits of $22 million and advances of $10 million.

“With a customer base of 2000, we had made a modest profit of $280,000 during the first year. I am confident that the Bank will grow significantly in the coming years,” he said.

Navin Chandra Upreti, who has just taken charge as the Managing Director, said he was upbeat about the growth of the Bank.

“We are well positioned to cater to the banking needs of the target segment and will fine-tune our products whenever the need arises to suit the requirements of our customers,” he said.

Auckland Branch Manager Ashok Bahadur said the Bank will launch products and services to cater to the Small and Medium Enterprises in general and the dairy segment in particular.

“We will continue to focus in facilitating our customers in remitting their funds to India in an efficient and cost effective manner,” he said.

Bank of Baroda at a Glance

*As at June 30, 2011