Despite a creditable performance, the global performance of Bank of Baroda showed distorted figures as at the end of March, orchestrated by a sharp drop in the exchange value of the Indian Rupee in terms of the New Zealand Dollar.
The Bank’s total business worldwide increased by 25.9% to reach $161.67 billion from $157 billion recorded as at the end of March 31, 2011, while net profit stood at $1.20 billion, accounting for a rise of 38.7%.
In relative terms, when converted to New Zealand Dollars, the figures were far removed from reality. The Table appearing below would show a drop in net profit
From $1.24 billion reported last year.
The Banks’ total advances, which were $67.23 billion in March 2011, increased by 25.7% to reach $69.11 billion, Capital Adequacy Ratio (Basel II) moved up marginally to 14.67% (from 14.52%), reflecting growth.
The Bank’s Managing Director Mangalore Devadas Mallya said in Mumbai on May 4 that profit for the fourth quarter rose by 17%, supported by an increase in interest income and a tax refund.
However, the Bank was obliged to expand its provision for bad debt.
According to analysts, bad debt worsened during the final quarter of fiscal 2011-2012, as gross non–performing assets (NPAs) were at 1.53% of the Bank’s total advances, against 1.36% during the previous year.
“Post–provisioning, bad debts were at 0.54% of the advances as against 0.35%.
“Bank of Baroda restructured its loans, some which related to airlines and state electricity boards.
“We have seen some large accounts getting restructured during the year. Therefore, the lumpiness in stressed accounts is out. We do not see this high restructuring in the Full Year 2013 and hence the situation relating to non-performing assets will be much better,” he said.
Net interest margin (NIM), the difference between yields on advances and the cost of deposit, fell to 3.44% for domestic operations from 3.7% earlier. In FY13, the bank will maintain NIM at the current level, Mr Mallya said.
New Zealand Business
Bank of Baroda New Zealand Limited Managing Director Navin Upreti did not announce the results of the New Zealand operations at press time, but mentioned that two new branches are now in operation.
“Our Manukau branch in South Auckland commenced functioning with a soft-opening on May 7, 2012. Located at 726, Great South Road, Manukau, we are confident that our customers would find it convenient for their banking needs. This is our second branch in Auckland City and third in the country,” he said.
The Bank opened its branch in Wellington on April 2, 2o12 at 55 Featherston Street.
Arvind Srivastava and TVVS Sharma are respectively the managers of the Manukau and Wellington branches.
As at the end of March 31, the Bank had 89 overseas branches and offices in 24 countries, up from 85 as the end of March last year.
“Our overseas business contributed 28.3% to the Bank’s total business, 207% to gross profit and 34% to core free income,” Mr Mallya said.
Mr Mallya received a number of awards during the past financial year. These included ‘Outstanding Financial Professional 2010’ (CNBC-TV18 & MCX), ‘Best Banker Award’ (T A Pai Memorial Award by Karnataka State Open University), ‘Lifetime Achievement Award (Dainik Bhaskar India Pride Awards) and ‘The Banker of the Year Award’ (Business World-PWC).
Photo : Picture taken at the opening of the Manukau Branch opening on May 7, 2012 shows (from right) Navin Upreti (Managing Director) N. C. Upreti, Managing Director, Dr Rajen Prasad (Director), Ashok Bhaduria (Auckland City Branch Manager) Arvind Srivasatav (Manukau Branch Manager) and Mrs Srivastava.
Bank of Baroda at a Glance
|
Item |
March 31, 2012 |
March 31, 2011 |
Growth |
|
Total Business |
$161.67 billion |
$157 billion |
25.9% |
|
Total Deposits |
$ billion |
$85.80 billion |
26.6% |
|
Total Advances |
$69.11 billion |
$67.23 billion |
25.7% |
|
Capital Adequacy |
14.67% |
14.52% |
|
|
Gross Profit |
$ billion |
$2.05 billion |
43.8% |
|
Net Profit |
$1.20 billion |
$.1.24 billion |
38.7% |
|
Branches (India) |
3100 |
3364 |
|
|
Overseas* |
90 |
85 |
|
|
Employees** |
40000 |
39000 |
|
|
Customers** |
36 million |
39 million |
|
Notes:
Figures quoted above are in New Zealand Dollars. Figures have been rounded off for easy reading and hence percentages may not reflect actual figures, especially in view of the substantial difference in exchange rate of the Rupee during the period mentioned. For more details, visit www.bankofbaroda.co.in
*Includes branches and offices
** includes branches in India and branches and offices overseas
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