fm termpaper

8/7/2019 fm termpaper

1/40

SUBMITTED TO: SUBMITTED BY:

KAWALPREET MAM VIPRANDRA TARUN

10904736

RR 1904 A13


2/40

_______________________________________CONTEST

1) HISTORY2) CHANGE IN SHARE PRICE LAST YEAR IN 2008-093) BANK OF BARODA FINANCIALS REPORT4) CAPITAL ADEQUACY5) PRUDENTIAL MEASURES6) RATIOS CALCULATION7) LIQUIDITY RISK OF COMPANY8) CREDIT RISK OF THE COMPANY9) DIVIDEND10)EARNING & DIVIDEND ANALYSIS11)BALANCE SHEET12)RATIO ANALYSIS13)PROFIT/LOSS A/C14)BUSINESS PERFORMANCE ACCORDING TO BALANCE SHEET:15)SEGMENT-WISE PERFORMANCE16)RESOURCE MOBILISATION & ASSET EXPANSION17)IPO ISSUES OF BANK OF BARODA18)BACKGROUND19)OBJECTS OF THE ISSUE20)KEY INVESTMENT RATIONALE21)NEW INITIATIVES TO DRIVE GROWTH22)RETAIL THRUST23)TECHNOLOGY GROWTH ENABLER24)DE-RISKING OF INVESTMENT PORTFOLIO25)IMPROVING ASSET QUALITY26)KEY INVESTMENT CONCERNS27)FINANCIALS28)VALUATIONS29)INTERPRETATION30)NET PROFIT31)PERFORMANCE OF INDIAN BANKING SECTOR IN 2008-0932)BUSINESS AND FINANCIAL METRICS33)NEWS OF BANK OF BARODA


3/40

INTRODUCTION

Bank of Baroda

Bank of Baroda

TypePublic

BSE & NSE:BOB}

Industry BankingCapital Markets and allied industries

Founded 1908

HeadquartersBank of Baroda,

Baroda Corporate Centre,


4/40

Plot No - C-26, G - Block,

Bandra Kurla Complex

Mumbai India

Key people M D Mallya, Chairman & Managing Director

Products Loans, Credit Cards, Savings, Investment vehicles etc.

Revenue Rs. 17754 crores (US$ 3.9 billion)

Total assets Rs. 2,274 bn (US$ 50 billion)

Website www.bankofbaroda.com

Cadre Year ended March

2005 2006 2007 2008 2009

Officers 11,848 12,345 13,636 13,840 13,542

Clerks 19,284 18,231 16,979 15,777 15,485

Sub-staff 8,397 8,198 7,989 7,643 7,811

Total 39,529 38,774 38,604 37,260 36,838

Area Classification (India) Number of Branches % Share in Total

Metro 637 21.77

Urban 540 18.46

Semi-urban 649 22.18

Name of the Director Period

Meetings held

during the period

of their tenure

Meetings attended

Shri M D Mallya 07.05.2008 to 31.03.2009 3 3

Shri V Santhanaraman 01.04.2008 to 31.03.2009 3 3

Shri S C Gupta 01.04.2008 to 05.11.2008 2 2

Shri Rajiv Kumar

Bakshi06.11.2008 to 31.03.2009 1 1

Shri A Somasundaram 01.04.2008 to 31.03.2009 3 3


5/40

Rural 1100 37.59

Total 2926 100.00

Overseas 48 100.00

Bank of Baroda Key Data:

Ticker: 532134 Country: INDIAExchanges: BOM Major Industry: Financial

Sub Industry: Commercial Banks

183,932,617,000

(Year Ending Jan 2010).Employees: 36,838

Currency: Indian Rupees Market Cap: 242,583,275,675

Fiscal Yr Ends: March Shares Outstanding: 364,266,500

Share Type: Ordinary Closely Held Shares: 196,000,000

Shri M.D.Mallya, was appointed by the Central Government as Whole time Director designated as Chairman

and Managing Director w.e.f. 07th May 2008, under section 9(3) (a) of the Banking Companies (Acquisition &

Transfer of Undertakings) Act, 1970.

Shri Rajiv Kumar Bakshi, was appointed by the Central Government as Whole time Director designated as

Executive Director w.e.f. 06th November 2008, under section 9(3) (a) of the Banking Companies (Acquisition

& Transfer of Undertakings) Act, 1970, vice Shri S.C.Gupta who ceased to be a Director on his appointment as

Chairman and Managing Director of United Bank of India.

Shri Amitabh Verma, IAS was nominated by the Central Government as a Director w.e.f. 10th June 2008,under section 9(3) (b) of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970

representing the Central Government vice Shri G.C. Chaturvedi, IAS who ceased to be a Director on the

nomination of Shri Verma

Smt. Masarrat Shahid nominated by the Central Government under section 9(3) (h) of the Banking

Companies (Acquisition & Transfer of Undertakings) Act, 1970, ceased to be a Director w.e.f 14.09.2008 on

completion of her tenure.

Shri Maulin A. Vaishnav nominated by the Central Government under section 9(3) (h) of the Banking

Companies (Acquisition & Transfer of Undertakings) Act, 1970, ceased to be a Director w.e.f. 28.11.2008 uponhis resignation.

Dr. Dharmendra Bhandari, Shri Manesh P Mehta and Dr. Deepak B. Phatak representing shareholders

other than Central Government, elected as Directors under section 9(3) (i) of the Banking Companies

(Acquisition & Transfer of Undertakings) Act, 1970, ceased to be Directors w.e.f. 15.11.2008, on completion of

their tenure.

Dr. Dharmendra Bhandari, Dr. Deepak B. Phatak and Shri Maulin A. Vaishnav were elected as Directors from

amongst Shareholders other than Central Government under section 9(3) (i) of the Banking Companies


6/40

(Acquisition & Transfer of Undertakings) Act, 1970. The elections were held at the Extra Ordinary General

Meeting of the Shareholders of the Bank held on 23.12.2008 and they assumed office w.e.f. 24.12.2008 for a

period of three years till 23.12.2011.

HISTORY

Bank of Baroda (BSE: 532134) (BoB) (Hindi: ) is the third largest Public Sector bank in India

after State Bank of India and Punjab National Bank. BoB has total assets in excess of Rs. 2.27 lakh crores, orRs. 2,274 billion, a network of over 3000 branches and offices, and about 1100+ ATMs. It offers a wide range

of banking products and financial services to corporate and retail customers through a variety of delivery

channels and through its specialised subsidiaries and affiliates in the areas of investment banking, credit cards

and asset management.

Maharajah of Baroda Sir Sayajirao Gaekwad III founded the bank on July 20, 1908 in the princely state of

Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalised on 19

July 1969, by the Government of India.

INTERNATIONAL PRESENCE

Bank of Baroda Building in Dubai

In its international expansion Bank of Baroda followed the Indian diasporas, and especially that of the

Guajaratis. It has significant international presence with a network of 72 offices in 25 countries, six

subsidiaries, and four representative offices.

Among Bank of Baroda's 42 overseas branches are ones in the worlds major financial centers i.e. New YorkLondon, Dubai, Hong Kong (which it has upgraded recently), Brussels and Singapore, as well as a number in

other countries. The bank is engaged in retail banking via 17 branches of subsidiaries in Botswana, Guyana,

Kenya, Tanzania, and Uganda. Bank of Baroda also has a joint-venture bank in Zambia with nine branches

Bank of Baroda maintains representative offices in Malaysia, China, Thailand, and Australia. It plans to

upgrade its offices in China and Malaysia shortly to a branch and joint-venture, respectively.

Bank of Baroda has received permission or in principle approval from host country regulators to open new

offices in Trinidad and Tobago and Ghana, where it is seeking to establish joint ventures or subsidiaries. The

bank has received Reserve Bank of India approval to open offices in the Maldives, and New Zealand. It is


7/40


8/40

y BOB, Union Bank of India and Indian Bank established IUB International Finance, a licensed deposittaker, in Hong Kong. Each of the three banks took an equal share.

y 1985: BOB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambiangovernment; 40%) established Indo-Zambia Bank(Lusaka).

y BOB also opened an Offshore Banking Unit (OBU) in Bahrain.y 1988: BOB acquired Traders Bank, which had a branch network in Delhi.

1990s

y 1990: BOB opened an OBU in Mauritius, but closed its representative office in Sydney.y 1991: BOB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S)

P&Ss branch had been established before 1970 and Union Banks after 1980. The Reserve Bank of

India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and

subsequent losses.

y 1992 BOB incorporated its operations in Kenya into a local subsidiary with a small tranche of sharesquoted on the Nairobi Stock Exchange.

y 1993: BOB closed its OBU in Bahrain.y 1996: BOB Bank entered the capital market in December with an Initial Public Offering (IPO). The

Government of India is still the largest shareholder, owning 66% of the bank's equity.

y 1997: BOB opened a branch in Durban.y 1998: BOB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a

response to regulatory changes following Hong Kongs reversion to the Peoples Republic of China. The

now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license bank.

y BOB also acquired Punjab Cooperative Bankin a rescue.y 1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64

branches, including four in Delhi.

y In Guyana, BOB incorporated its branch as a subsidiary, Bank of Baroda Guyana.y BOB added a branch in Mauritius, but closed its Harrow Branch in London.

2000s

y 2000: BOB established Bank of Baroda (Botswana).y 2002: BOB acquired Benares State Bankin Benares at the Reserve Bank of Indias request.y 2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE).y 2003: BOB opened an OBU in Mumbai.y 2004: BOB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing a

subsidiary in Dar-es-Salaam. BOB also opened a representative office each in Kuala Lumpur, Malaysia

and Guangdong, PRC.

y 2005: The Reserve Bank of India (RBI), has approved a joint venture between BOB, Bank ofMaharashtra (BOM), and Oriental Bank of Commerce (OBC) to set up a bank in Malaysia. The new

bank will reside in Kuala Lumpur, which has a large population of Indians. The initial capital required

will be US$78 million; BOB will invest 40%, and the other two banks will invest 30% each. The JV is

awaiting approval from the Malaysian Central Bank. Bank has built and commissioned its own State-of-


9/40

the-Art Global Data Centre (DC) in Mumbai for running its centralized banking solution(CBS) and other

applications in 1900+ branches across India and 20 other counties where the Bank is operating. BOB

also opened a representative office in Thailand.

y 2006: BOB established an off shrore Banking Unit (OBU) in Singapore.y 2007: In its centenary year, BOB's total business crossed 2.09 crores, its branches crossed 1000, and its

global customer base 29 million people.

y 2008: BOB opened a branch in Guangzhou, China (02/08/2008).y 2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank

in New Zealand (2009/09/01)

CHANGE IN SHARE PRICE LAST YEAR IN 2008-09

DateOpenPrice

HighPrice

LowPrice

ClosePrice WAP

No.ofShares

No. ofTrades

TotalTurnover(Rs.)

SpreadHigh-Low

SpreadClose-Open

1-Jan-08 455 478 451.1 474.8 471.1187 116281 2701 54782152 26.9 19.8

2-Jan-08 478 497.4 472.5 485.35 484.0713 228652 3782 110683879 24.9 7.35

3-Jan-08 485 501 480.15 491.1 490.8065 214757 3769 105404135 20.85 6.1

4-Jan-08 491 497 475.05 481.6 487.9079 113350 3024 55304366 21.95 -9.4

7-Jan-08 472 479.95 459.9 467.55 468.4447 324546 3669 152031840 20.05 -4.45

8-Jan-08 467 480 450 452.4 460.9435 130887 3064 60331517 30 -14.6

9-Jan-08 451 474.7 441.5 462.55 458.9681 246524 4378 113146644 33.2 11.5510-Jan-

08 460 472 441 443.65 459.5023 85512 2885 39292961 31 -16.35

11-Jan-08 445 451 436 444.15 441.9282 101003 2763 44636074 15 -0.85

14-Jan-08 452 470 442 467.9 461.6144 153828 3280 71009217 28 15.9

15-Jan-08 477 478 460.05 462.9 470.5415 103943 2334 48909498 17.95 -14.1

16-Jan-08 454.6 474 445 465.05 457.4884 106597 2752 48766889 29 10.45

17-Jan-08 465 473.1 457 464.1 467.6688 119313 2711 55798965 16.1 -0.9

18-Jan-

08 460 460 426 437.6 446.6002 175792 3058 78508739 34 -22.421-Jan-

08 430 430 370 385.25 399.998 198760 3252 79503606 60 -44.7522-Jan-

08 370.25 410 300.05 369.35 361.0118 109756 1609 39623210 109.95 -0.923-Jan-

08 400 424.3 365.3 412.85 398.2037 102129 2730 40668145 59 12.8524-Jan-

08 421 434 393.2 406.35 416.0758 128364 4051 53409153 40.8 -14.6525-Jan-

08 416 444.2 410.15 420.35 432.3108 143322 3757 61959649 34.05 4.35


10/40

28-Jan-08 403.2 444 385 429.95 430.059 147311 4525 63352423 59 26.75

29-Jan-08 439.8 444.9 405.2 407.75 421.137 143937 3589 60617202 39.7 -32.05

30-Jan-08 412 418 385 391.3 399.5314 198482 5449 79299783 33 -20.7

31-Jan-08 391 399.9 380.15 388.9 390.4489 148943 3413 58154629 19.75 -2.1

1-Feb-08 392 413.5 381 405.75 396.7451 113961 3401 45213468 32.5 13.75

4-Feb-08 415 428 409 416.05 420.113 274116 4580 115159692 19 1.05

5-Feb-08 414.4 427 410 419.9 420.9783 116265 3503 48945043 17 5.5

6-Feb-08 400.1 409 390 404.65 405.3746 133170 3055 53983734 19 4.55

7-Feb-08 406.5 419 390 393.4 406.3389 205726 4435 83594484 29 -13.1

8-Feb-08 395.85 403 383 386.1 389.503 163574 3539 63712567 20 -9.75

9-Feb-08 384 386 354 364.9 364.7112 215296 3347 78520872 32 -19.1

10-Feb08 370 381 354.15 361.65 369.4319 108924 2651 40240003 26.85 -8.35

11-feb08 365 388 365 381.7 374.782 131140 2779 49148916 23 16.7

12feb08 387 401 385 398.75 392.9673 68903 3021 27076627 16 11.75

13feb08 390 416 382 411.85 402.8519 142098 3200 57244449 34 21.85

14feb08 413 432 412.5 427.75 426.4226 223090 3591 95130627 19.5 14.75

15feb08 430 434.8 402.2 405.75 415.1281 301699 5991 125243729 32.6 -24.25

16feb08 400 404.5 387 401 399.0537 192509 4788 76821423 17.5 1

17feb08 410 412 376.5 380.2 387.637 232786 5856 90236457 35.5 -29.8

18feb08 377 382.9 367.1 377.5 374.384 179373 4823 67154385 15.8 0.5

19feb08 385 385 366.5 375.45 371.055 523882 3458 194389019 18.5 -9.55

20feb08 374.1 381.9 372.45 375.6 376.4221 103528 2417 38970223 9.45 1.5

21feb08 381 383 368 369.85 375.8286 134533 3485 50561355 15 -11.15

22feb08 369.85 375 353.6 357.15 358.106 756301 6062 270835911 21.4 -12.7

23feb08 358 369.9 341.25 365.75 356.3439 819772 11389 292120780 28.65 7.75

3-Mar-08 360 360 336 339.45 347.1679 222484 6368 77239300 24 -20.55

4-Mar-08 340 347 315 333.2 332.2303 234223 6969 77815972 32 -6.8

5-Mar-08 331 331 309 311.55 319.1577 606202 10358 193474033 22 -19.45

7-Mar-08 303 306 285.5 299.2 292.991 279001 4773 81744793 20.5 -3.8

9mar08 295 313.4 278 293.85 295.6459 550629 8517 162791223 35.4 -1.15

10mar08 291 308 287 304.05 302.4573 179703 4441 54352478 21 13.05


11/40

12mar08 312 322 286 292.35 306.2106 294490 6708 90175955 36 -19.65

13Mar08 285 291.5 270.1 273.4 282.2371 220573 4969 62253886 21.4 -11.6

14mar08 275 289.85 270.4 287.7 280.2524 224854 4884 63015881 19.45 12.7

17mar08 273 283 255.55 277.3 277.1215 216678 4705 60046132 27.45 4.3

20mar08 272 284 262 278.15 273.3019 254608 5111 69584859 22 6.15

21mar08 285 298.4 262 271.2 281.1076 533146 5450 149871388 36.4 -13.8

22mar08 274 279.4 264 273.65 269.937 121332 2150 32751999 15.4 -0.35

24mar08 277.15 305 277.15 299.3 290.0605 272879 5275 79151428 27.85 22.15

26mar08 302 305 290.5 292.75 295.7093 181805 3825 53761436 14.5 -9.25

28mar08 285 295 283 290.75 289.4523 191834 3144 55526801 12 5.75

29mar08 275 305 275 301.3 293.701 123054 3643 36141078 30 26.3

30mar08 304 304.8 282.15 283.9 290.0264 162953 3378 47260673 22.65 -20.1

1-Apr-08 282 295 277 290.25 284.433 176261 3218 50134437 18 8.25

2-Apr-08 300 305.9 288.1 293.75 292.9206 481489 4890 141038025 17.8 -6.25

3-Apr-08 297 300.2 281.2 283 289.6819 199020 3758 57652498 19 -14

4-Apr-08 286.3 288 269 270.35 276.1939 218547 4521 60361353 19 -15.95

7-Apr-08 274.5 285 267 283.15 278.4232 214018 3951 59587566 18 8.65

8-Apr-08 277 287.95 277 280.15 281.8432 265717 4735 74890534 10.95 3.15

9-Apr-08 280 295.95 276.6 294.1 289.1835 197316 4348 57060525 19.35 14.1

12apr08 295 298.5 289 291.7 295.2521 232818 4188 68739992 9.5 -3.3

14apr08 295.95 297 288.15 294.75 292.7673 164909 3683 48279964 8.85 -1.2

16apr08 286 296.45 286 293.05 293.9497 128565 2717 37791649 10.45 7.05

17Apr08 294 298 286.75 289.7 294.1827 78078 2282 22969194 11.25 -4.3

18Apr08 294.7 302 292.3 299.05 298.3928 219786 4314 65582554 9.7 4.35

24Apr08 300 311.25 295 310 305.3433 188804 3666 57650039 16.25 10

24Apr08 310 320 309 313.2 314.8794 217384 4429 68449744 11 3.2

25apr08 314 316.5 305 306.5 309.5202 103020 3009 31886776 11.5 -7.5

26Apr08 307 314 291.3 301.25 303.9948 176511 3899 53658432 22.7 -5.75

27Apr08 303 313.95 303 309.85 309.3299 151682 3774 46919776 10.95 6.85

28Apr08 315 315 305.3 307.05 307.9256 87274 3039 26873903 9.7 -7.95

29Apr08 308 320.9 304.9 314.8 315.7545 262694 6126 82946815 16 6.8

30Apr08 315.05 320.9 313 315.15 317.3616 167091 4349 53028273 7.9 0.1


12/40

2-May-08 320 328.9 315 320.1 323.6963 253414 5867 82029183 13.9 0.1

5-May-08 322.05 329.9 318.1 320.05 323.8499 214870 4529 69585625 11.8 -2

6-May-08 320.15 327.85 319.15 325.35 324.6418 385038 3866 124999415 8.7 5.2

7-May-08 324 325 316.6 317.55 320.4018 86026 2220 27562883 8.4 -6.45

8-May-08 316.9 317 298.5 300.05 303.3593 234826 3968 71236662 18.5 -16.85

9-May-08 298 302.9 291 293.55 298.03 156683 3938 46696239 11.9 -4.45

10May08 292.55 295.4 284.1 291.75 288.5347 97371 3024 28094910 11.3 -0.8

12May08 295 301 294 295.1 296.6628 78926 2571 23414411 7 0.1

14may08 292.55 297.5 286 287.5 291.0388 103984 2610 30263380 11.5 -5.05

16May08 290.05 294.9 290 292.05 291.8732 103262 1841 30139412 4.9 2

18May08 294 298.7 292.1 295.45 295.4503 206975 3441 61150818 6.6 1.45

20May08 296.4 305.3 290.1 291.9 298.3347 486114 8783 145024672 15.2 -4.5

22may08 291.1 293 285 291.35 289.6867 219031 4548 63450362 8 0.25

24May08 290.35 293.5 283 288.45 286.2125 199607 4326 57130020 10.5 -1.9

26May08 291.1 295.45 283.1 285.3 288.8416 186145 4241 53766426 12.35 -5.8

27May08 280.3 285 272 274.95 277.2993 123161 2875 34152454 13 -5.35

28May08 279.95 281 260.1 261.75 268.6108 215510 4999 57888321 20.9 -18.2

29May08 259.5 272 254.2 269.15 260.6941 322403 5952 84048560 17.8 9.65

30May08 269.9 276.9 265.15 273.2 270.4398 170904 3951 46219252 11.75 3.3

1Jun08 277.2 277.2 266.1 270.05 271.2811 80739 2776 21902967 11.1 -7.15

2-Jun-08 271 273.8 257 259.9 265.9937 157708 3792 41949327 16.8 -11.1

3-Jun-08 255 255 246.3 247.9 250.4278 180771 3648 45270087 8.7 -7.1

4-Jun-08 249 253.5 240.05 241.6 247.1653 128803 3137 31835626 13.45 -7.4

5-Jun-08 241 243 234.25 235.95 237.5804 140200 3085 33308779 8.75 -5.05

6-Jun-08 239.9 241.9 226.2 228.65 232.8541 266882 5539 62144564 15.7 -11.25

9-Jun-08 220 225 211.15 223.35 219.4565 156267 3918 34293812 13.85 3.3510-Jun-

08 222 228 215 218.55 219.3685 141604 3851 31063453 13 -3.4511-Jun-

08 219 230 219 228.45 225.5758 139684 3414 31509334 11 9.4512-Jun-

08 224 238.5 215 236.45 229.8521 227118 5273 52203541 23.5 12.4513-Jun-

08 238.9 239.8 230.1 231.75 234.1678 146631 3139 34336263 9.7 -7.15


13/40


14/40

25-Jul-08 248 258 240 252.25 249.579 227860 4611 56869078 18 4.25

28-Jul-08 249 255.9 243 251.3 249.037 163669 4543 40759633 12.9 2.3

29-Jul-08 247 252.5 225.1 227.35 235.9473 389440 8094 91887304 27.4 -19.65

30-Jul-08 234.9 251.8 231.4 248.35 243.8968 377773 7119 92137620 20.4 13.45

31-Jul-08 252 262 242.1 255.5 250.4675 349815 7638 87617300 19.9 3.5

1-Aug-08 251 280 245 275.9 264.1452 527043 9883 139215861 35 24.9

4-Aug-08 273 284.7 271 278.3 280.3525 312259 7204 87542594 13.7 5.3

5-Aug-08 272 300 271 298.75 290.0409 524350 9514 152082937 29 26.75

6-Aug-08 295 309.5 278 281 293.5253 733302 12112 215242678 31.5 -14

7-Aug-08 280 290 280 283.55 284.9025 292647 6132 83375867 10 3.55

8-Aug-

08 278 289 275.5 285.8 282.1601 292847 6757 82629733 13.5 7.8

10Aug08 292 298.9 291.9 296.2 296.5262 223151 4147 66170119 7 4.2

12Aug08 300 300 282 284.4 287.7461 206982 4095 59558255 18 -15.6

14Aug08 280 285 269 271.3 276.2334 373305 6596 103119316 16 -8.7

16Aug08 268 272 251.1 254.65 259.3022 437026 6796 113321802 20.9 -13.35

18Aug08 253 260.9 249 258.6 255.9885 350796 6312 89799734 11.9 5.6

20Aug08 254 261.85 252.4 258.6 255.724 215626 4174 55140753 9.45 4.6

22Aug08 263 266 256.1 257.9 260.9059 157119 3262 40993271 9.9 -5.1

24Aug08 258 258.05 249.6 252.85 253.1361 176189 3131 44599795 8.45 -5.15

26Aug08 249.5 256.3 247 254.1 252.7318 171561 4579 43358917 9.3 4.6

27Aug08 257 266.85 257 264.05 263.9749 207068 5161 54660764 9.85 7.05

28Aug08 261 273.25 259.5 271.85 267.9454 368621 7044 98770318 13.75 10.85

29Aug08 273.7 275 268 269.35 272.3333 271423 5498 73917514 7 -4.35

30Aug08 266.65 277.5 266.65 273.6 271.8228 264348 4861 71855808 10.85 6.95

31Aug08 277 286 276.5 284.3 283.6411 308254 6205 87433508 9.5 7.3

1-Sep-08 282 294.5 270.15 289.9 284.2269 302296 5913 85920659 24.35 7.9

2-Sep-08 292 303.35 289.6 299.7 296.9047 599992 10001 178140431 13.75 7.7

4-Sep-08 297 307.1 292.1 302.4 300.1123 433022 8777 129955232 15 5.4

5-Sep-08 297 303.95 292.3 294.45 298.5421 376633 7471 112440800 11.65 -2.55

8-Sep-08 303 309.85 297.6 300.35 301.7405 220864 4442 66643605 12.25 -2.65

9-Sep-08 296 300 290.05 293.25 292.5597 308536 5089 90265213 9.95 -2.75


15/40

10Sep08 290 311.9 287 309.6 306.2481 1105309 14912 338498751 24.9 19.6

12Sep08 306 313.9 303.5 309.25 309.2108 825795 13010 255344745 10.4 3.25

14Sep08 310.2 316 305.45 309.8 311.1407 792983 10470 246729252 10.55 -0.4

16Sep08 303 305 290.05 302.05 295.8063 540010 7337 159738368 14.95 -0.95

17Sep08 290 322 287.3 316.55 308.9743 844819 14854 261027329 34.7 26.55

18Sep08 318 322.4 306 309.4 314.3791 988069 14507 310628240 16.4 -8.6

20Sep08 290.55 329.7 290.55 327.35 312.7712 781622 14796 244468858 39.15 36.8

22Sep08 335 338 320.25 323.85 324.9289 1030274 14088 334765786 17.75 -11.15

23Sep08 328 329.75 304.25 307 316.7676 664715 10766 210560189 25.5 -21

24Sep08 303 311 295.6 304.6 304.1734 557506 10549 169578488 15.4 1.6

25Sep08 306 308.6 298.35 300.8 303.3365 436993 6841 132555934 10.25 -5.2

26Sep08 300.8 306.5 295.5 303.6 300.3747 331072 6094 99445654 11 2.8

27Sep08 303.95 306 290 293 296.0567 529199 7879 156672928 16 -10.95

29Sep08 295 295.3 282.5 287.25 288.0739 594697 6693 171316689 12.8 -7.75

30Sep08 279.95 300 271 297.55 291.2513 287464 6749 83724264 29 17.6

1-Oct-08 301.05 314.85 290 311 305.0982 515851 11091 157385191 24.85 9.95

3-Oct-08 310 315.8 295.6 297.1 305.2817 351116 8708 107189281 20.2 -12.9

6-Oct-08 292.9 296 286.45 290.5 289.9148 323194 6382 93698730 9.55 -2.4

7-Oct-08 292.9 306.9 285.2 289.8 296.3687 513451 8789 152170812 21.7 -3.1

8-Oct-08 283 288.4 265.4 282.95 277.1834 347649 7067 96362525 23 -0.0510-Oct-

08 270 288.75 252 278.6 277.5551 608885 7861 168999139 36.75 8.613-Oct-

08 284.5 310 283 307.75 296.941 258682 6002 76813292 27 23.2514-Oct-

08 322.4 330 307 309.1 316.6008 529313 6926 167580906 23 -13.315-Oct-

08 304.95 316.8 298.4 305.2 309.4194 417141 9649 129071535 18.4 0.2516-Oct-

08 305 321 288 316.6 307.0148 603387 10966 185248714 33 11.617-Oct-08 320 326.95 300.1 304.05 316.6088 520948 10707 164936721 26.85 -15.95

20-Oct-08 304.25 320 295 312.55 309.846 369254 9054 114411874 25 8.3

21-Oct-08 315 318 304.05 309.55 310.9065 296030 7534 92037657 13.95 -5.45

22-Oct-08 303 310.6 278.55 283.15 292.2493 386283 8702 112890947 32.05 -19.85

23-Oct-08 274 288 268.8 273.55 274.4352 355249 7675 97492835 19.2 -0.45


16/40

24-Oct-08 270 271.95 230.25 245.35 251.597 414043 9298 104171967 41.7 -24.65

27-Oct-08 235 247.9 215.1 227.9 224.7287 307779 7292 69166785 32.8 -7.1

28-Oct-08 240 240 231 233.25 233.3318 41899 1496 9776370 9 -6.75

29-Oct-08 240 247 223.4 241.6 237.029 292853 6776 69414665 23.6 1.6

31-Oct-08 243 256.5 237 241.7 247.1876 349198 7153 86317407 19.5 -1.3

3-Nov-08 251 256 244.05 248.2 249.5802 276149 5855 68921333 11.95 -2.8

4-Nov-08 245.1 293.7 243.45 286.65 267.3734 490020 10849 131018295 50.25 41.55

5-Nov-08 295 299 278 280.1 289.4198 369711 8339 107001690 21 -14.9

6-Nov-08 265.05 292 265.05 275.55 275.2654 536224 8970 147603891 26.95 10.5

7-Nov-

08 275 299.5 272 292.65 281.762 330297 8654 93065150 27.5 17.65

8Nov08 301.7 301.7 292.7 298.1 297.3819 228116 6138 67837579 9 -3.6

10Nov08 296 300 281 284.7 287.2549 145841 4798 41893544 19 -11.3

12Nov08 281.5 290 277.5 282.35 282.6854 412364 6046 116569269 12.5 0.85

14Nov08 288.8 290 274.7 276.55 278.3669 544766 4838 151644819 15.3 -12.25

16Nov08 277 280 260.05 270.95 268.112 162674 4327 43614859 19.95 -6.05

18Nov08 267 271 253.6 263.8 261.2223 214664 5042 56075023 17.4 -3.2

20Nov08 264 270.95 258.1 263.7 263.335 301261 5262 79332569 12.85 -0.3

22Nov08 258 270 248.9 259.6 255.3326 383930 5891 98029834 21.1 1.6

24Novo8 265 272.5 253.5 267.55 261.8997 276117 6801 72314968 19 2.55

26Nov08 264.1 272.25 251.45 255 259.2731 283887 6150 73604255 20.8 -9.1

28Nov08 260 265 240 242.3 253.1371 272065 7052 68869749 25 -17.7

29Nov08 244.05 255.5 235.25 253.65 243.8601 346701 8616 84546550 20.25 9.6

30Nov08 250 261.3 246.35 257.85 255.7548 186105 5783 47597252 14.95 7.85

1-Dec-08 259 264 243.6 245.7 254.4724 195093 5615 49645791 20.4 -13.3

2-Dec-08 240 246 232.5 243.7 238.7118 209278 6451 49957129 13.5 3.7

3-Dec-08 245 252.45 241.2 248.75 248.2788 304991 6672 75722813 11.25 3.75

4-Dec-08 252 253.25 242.1 252.1 250.4767 396837 7486 99398440 11.15 0.1

5-Dec-08 252 258.9 245.65 247.65 252.5156 249789 7253 63075612 13.25 -4.35

8-Dec-08 253 258 249 252.85 252.7476 238827 4670 60362944 9 -0.15

12Dec08 252 256 247.2 249.25 250.9147 309883 5219 77754199 8.8 -2.75


17/40

14Dec08 250.05 254.45 248.1 251.7 251.877 359452 5888 90537700 6.35 1.65

16Dec08 247 258 244.05 256.05 253.4623 257259 4995 65205453 13.95 9.05

17Dec08 260.55 265.6 256.75 260.25 262.9846 198679 4598 52249519 8.85 -0.3

18Dec08 261 268.4 255.2 264.9 264.9581 173784 4175 46045487 13.2 3.9

20Dec08 270.3 273.1 262 264.05 266.3574 429744 6372 114465510 11.1 -6.25

22Dec08 265 275.9 263.5 274.9 270.1705 255312 5659 68977779 12.4 9.9

23Dec08 276.95 282.4 272.5 274.8 278.3007 256286 6047 71324579 9.9 -2.15

24Dec08 276 287.45 273 276.6 280.8452 286129 5577 80357953 14.45 0.6

25Dec08 275 277.15 257.4 260.6 262.3211 295948 5421 77633401 19.75 -14.4

26Dec08 262 272.5 255.5 268.55 267.5824 325449 6768 87084440 17 6.55

28Dec08 270 274.95 260 262.9 268.1272 138913 4715 37246352 14.95 -7.1

29Dec08 264 267.7 252.75 266.6 262.182 166787 5369 43728544 14.95 2.6

30Dec08 268 277.9 262.6 274.9 271.1505 207161 5488 56171807 15.3 6.9

31Dec08 279.9 283.5 270 280.45 276.8588 209641 5172 58040951 13.5 0.55

1-Jan-09 283.1 286.8 278.15 284.75 283.9019 141404 3983 40144864 8.65 1.65

BANK OF BARODA FINANCIALS REPORT

y Sales Rs. 17,754 croresy Profits Rs. 2,227 croresy Assets Rs. 2,27,406 crores

Capital Structure of Last Years

From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (Nos)Paid Up Face Value Paid Up Capital

2008 2009Equity

Share1,500.00 367.00 364266500 10 364.27


18/40

From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (Nos)Paid Up Face Value Paid Up Capital

2007 2008Equity

Share1,500.00 367.00 364266400 10 364.27

2006 2007Equity

Share1,500.00 367.00 364266000 10 364.27

2005 2006Equity

Share1,500.00 367.00 364265500 10 364.27

CAPITAL ADEQUACY

The Banks Capital Adequacy is comfortable at 14.05% under Basel II on 31st March 2009. During the year

the Bank strengthened its capital-base by raising Rs 1,500 crore through unsecured subordinated bonds and Rs

300.20 crore through innovative perpetual bonds.

The Banks Net Worth as at 31st March 2009 was Rs 11,387.19 crore comprising of paid-up equity capital of

Rs 363.53 crore and reserves (excluding revaluation reserves) of Rs 11,021.67 crore. An amount of Rs 1,843.65

crore was transferred to reserves from the profits earned.

PRUDENTIAL MEASURES

As a prudent measure, the Bank has made provision towards contribution to gratuity (Rs 38.60 crore), pension

funds (Rs 435 crore), leave encashment (Rs 37 crore) and additional retirement benefits (Rs 40 crore) on

actuarial basis. Total provisions under these four categories amounted to Rs 550.60 crore during the year 2008-

09, against Rs 421.43 crore during 2007-08. Total corpus available with the Bank at end March 2009 under

these heads is: Rs 794.57 crore (gratuity), Rs 2,629.00 crore (pension funds), Rs 300.40 crore (leave

encashment), and Rs 278.80 crore (additional retirement benefits).

RATIOS CALCULATION OF LAST 6 YEAR

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Per share ratios

Adjusted EPS (Rs) 61.14 39.40 27.83 28.84 23.08

Adjusted cash EPS (Rs) 67.47 45.77 33.16 31.89 25.87


19/40


Reported EPS (Rs) 61.14 39.41 28.18 22.70 23.08

Reported cash EPS (Rs) 67.47 45.78 33.51 25.75 25.87

Dividend per share 9.00 8.00 6.00 5.00 5.00

Operating profit per share (Rs) 82.98 57.48 42.41 22.10 31.70

Book value (excl rev res) per share (Rs) 352.37 303.18 237.46 215.35 191.90

Book value (incl rev res) per share (Rs.) 352.37 303.18 237.46 215.35 191.90

Net operating income per share (Rs) 455.85 360.56 262.13 200.24 228.86

Free reserves per share (Rs) 208.73 180.73 162.88 150.04 119.84

Profitability ratios

Operating margin (%) 18.20 15.94 16.17 11.03 13.85

Gross profit margin (%) 16.81 14.17 14.14 9.51 12.63

Net profit margin (%) 12.86 10.38 10.22 10.76 9.77

Adjusted cash margin (%) 14.19 12.06 12.03 15.12 10.95

Adjusted return on net worth (%) 17.35 12.99 11.71 13.39 12.02

Reported return on net worth (%) 17.35 12.99 11.86 10.54 12.02

Return on long term funds (%) 103.70 91.52 81.71 66.45 76.67

Leverage ratios

Long term debt / Equity - - - - -

Total debt/equity 14.99 13.77 14.44 11.94 14.45

Owners fund as % of total source 6.25 6.77 6.47 7.72 6.47

Fixed assets turnover ratio 4.20 3.47 4.25 3.89 3.93Liquidity ratios

Current ratio 0.27 0.34 0.61 0.56 0.67

Current ratio (inc. st loans) 0.02 0.02 0.03 0.03 0.04

Quick ratio 9.62 9.56 11.29 9.49 8.28

Inventory turnover ratio - - - - -

Payout ratios

Dividend payout ratio (net profit) 17.22 23.75 24.59 25.11 24.66

Dividend payout ratio (cash profit) 15.60 20.44 20.68 22.13 22.00Earning retention ratio 82.78 76.25 75.10 80.23 75.34

Cash earnings retention ratio 84.40 79.55 79.10 82.12 78.00

Coverage ratios

Adjusted cash flow time total debt 78.28 91.19 103.42 80.64 107.21

Financial charges coverage ratio 1.37 1.35 1.37 1.31 1.33

Fin. charges cov.ratio (post tax) 1.25 1.21 1.22 1.24 1.22

Component ratios


20/40


Material cost component (% earnings) - - - - -

Selling cost Component 0.24 0.25 0.26 0.35 0.15

Exports as percent of total sales - - - - -

Import comp. in raw mat. Consumed - - - - -

Long term assets / total Assets 0.92 0.91 0.87 0.90 0.90

Bonus component in equity capital (%) - - - - -

Ratio analysis:

1. Current ratio; in this ratio a comparison is made between current assets and current liabilities. this ratioshow that how much our current assets are more than our current liabilities.

Golden role: 2:1 Its means that if the current assets are double of current liabilities than the ratio is

considered satisfactory.

In year 2009

Current ratio= 0.27

In year 2008 Current ratio= 0.34

Thats means company have more current assets of the current liabilities .and company have a good

financial position

2. Quick assets ratio: liquid, quick, acid test ratio is that raito in which a compression is made between

quick assets and current liabilities.

Quick assets ratio= quick assets\current liabilities

In year 2009

Quick assets ratio=9.62

In year 2008

Quick assets test ratio=9.56

Thats means that company has more quick assets to the current liabilities. And companies easily face any

future loss.


21/40

3) Working turnover ratio capital ratio: working capital turnover ratio is that ratio which shows the

efficiency with which working capital has been used in business. Ratio shows the efficiency of working capital

in making sales of business.

Working turnover ratio= net sales\ working capital

Working capital=C.A- C.L

After calculating and analyzing the ratio I reach that Point Company have a very good

position and this company stay in this industry forever and can beat competitor easily and this organization

good for investor.

LIQUIDITY RISK OF COMPANY

Liquidity risk is the risk that the Bank either does not have the financial resources available to meet all itsobligations and commitments as they fall due or has to access these resources at excessive cost. During the

second and third quarters of 2008-09, Indian market line with the global financial market, exhibited high levelof volatility causing liquidity stress to the market participants. The Indian Government as well as the ReserveBank of India introduced various economic and monetary measures to inject liquidity into the financial system.As a result, the financial system exhibited a fair level of stability at the end of the year under review.

The Banks ALCO has the overall responsibility to monitor liquidity risk of the Bank. The liquidity risk ismeasured by flow approach on a daily basis through Structural Liquidity Gap reports and on a dynamic basis byDynamic Gap reports on fortnightly basis for the next three months. Under Stock Approach, the Bank hasestablished a series of caps on activities such as daily call lending, daily call borrowings, net short termborrowings and net credit to customer deposit ratio and prime asset ratio, etc. The Asset Liability Management(ALM) Cell, working in the Risk Management Department reviews the liquidity position on a daily basis to

ensure that the negative liquidity gap does not exceed the tolerance limit in the respective time bucketsSpecialized Integrated Treasury Branch, Mumbai assesses the domestic liquidity in respect of all foreigncurrency exposures. In respect of overseas operations, each territory assesses its currency wise liquidity positionat prescribed intervals. The funding requirements in case of contingencies are also examined at regular intervalsto keep the Bank ready to meet any crisis scenario.

The Bank has managed its liquidity by prudent diversification of the deposit base, control on the level of bulkdeposit, and ready access to wholesale funds under normal market conditions. The Bank has significant level ofmarketable securities, which can be sold, repaid, or used as collateral in case of need.

Credit Risk of the company

Credit Risk is the risk that the counterparty to a financial transaction will fail to discharge an obligationresulting in a financial loss to the Bank. Credit risk management processes involve identification, measurementmonitoring and control of credit exposures.

In order to provide clarity to the operating functionaries, the Bank has various policies in place such asDomestic Loan Policy, Off-Balance Sheet Exposure Policy, etc, wherein the Bank has specified variousprudential caps for credit risk exposures. The Bank also conducts industry studies to assess the risk prevalent inindustries where the Bank has sizable exposure and also for identification of sunrise industries. The industryreports are communicated to the operating functionaries to consider the same while lending to these industries.


22/40

The Bank has adopted various credit rating models to measure the level of credit risk in a specific loantransaction. The Bank uses a robust rating model developed to measure credit risk for majority of the businessloans (non personal loans). The rating model has the capacity to estimate probability of default (PD), LossGiven Default (LGD) and unexpected losses in a specific loan asset.

Apart from estimating PD and LGD, the credit rating model will also help the Bank in several other ways asunder.

y To migrate to Rating Based Approaches of computation of Risk Weighted Assetsy To price a specific credit facility considering the inherent credit risk.y To measure and assess the overall credit risk and to evolve a desired profile of credit risk.

Apart from assessing credit risk at the counterparty level, the Bank has appropriate processes and systems toassess credit risk at portfolio level. The Bank undertakes portfolio reviews at regular intervals to improve thequality of the portfolio or to mitigate the adverse impact of concentration of exposures to certain borrowers,sectors or industries.

DIVIDEND

Year Month Dividend (%)2010 Apr 150

2009 Apr 90

2008 May 80

Calenda

r year

EARNINGS PER SHARE DIVIDEND PER SHARE


23/40

EARNING & DIVIDEND ANALYSIS

This detailed Report provides an Earnings and Dividends history forBank of Baroda. Tabular results include

up to a ten-year history of "as reported" Earnings per Share and Dividends per Share plus a calculation of the

amount of earnings paid out over the year in dividends (i.e. Payout Ratio). Earnings and Dividends arepresented on both a Quarterly and Annual basis. An annual Percent Change factor is calculated for both

Earnings and Dividends. Bank of Baroda. The Group's principal activities are to provide banking and related

services. The Group's services include personal banking, which includes deposits, retail loans, credit cards,

debit card, lockers and other services; business banking, which includes deposits, loans and advances, services

and lockers; corporate banking, which includes wholesale banking, deposits, appraisals and merchant banking,

and cash management and remittances; international business, which includes non-resident Indian (NRI)

services, offshore banking, export finance, import finance, correspondent banking, trade finance and

international treasury; treasury banking, which includes domestic operations and forex operations, and rural

banking, which includes deposits, loans, priority sector advances, services and lockers. The Group's

international operations cover 25 countries through its 74 branches/offices.

Directors have proposed a higher dividend of 90.0% (Rs 9 per share) for the year ended March 31st, 2009.

Total outgo in the form of dividend, including taxes, will be Rs 383.56 crore.

Balance sheet

------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 month

Earning %change

Quarterly reported earning

Q1 Q2 Q3 Q4

MAR JUN SEP DEC

12 month

dividend %change Q1 Q2 Q3 Q4

MAR JUN SEP DEC

%

Pay

out

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

0.057 -97.0%

2.534 5693.0

2.650 -20.2

2.715 2.5

2.435 -10.3

1.232 -49.4

-3.113 0.0

-7.239 0.0

2.340 0.0

-8.140 0.0

0.0 0.0

0.476 0.542 0.102 1.064

0.542 0.586 0.567 0.840

0.644 0.55 0.700 0.756

0.653 0.075 1.092 1.045

.532 0.686 0.714 0.504

0.686 0.686 0.518 -0.658

-0.350 -0.868 -1.189 -0.706

-0.056 -6224 0.100 -1.060

0.670 0.600 0.560 0.430

0.380 0.140 -8.950 0.330

0.660 r/a r/a r/a

0.641 0.0%

A n/a -100.0%

A 1.232 A/C

1.232 0.0%

1.232 0.0%

0.976 - 20.9%

A0.244 -75.0%

A0.397 62.3%

0.050 114.4%

0.950 11.8%

r/a -100.0%

0.210 0.210 0.210 0.210

0.210 0.210 0.210 0.293

0.308 0.308 0.308 0.308

0.308 0.308 0.308 0.308

0.308 0.308 0.308 0.308

0.308 0.308 0.308 0.052

0.052 0.052 0.070 0.070

0.070 0.070 0.070 0.188

0.100 0.100 0.237 0.237

0.237 0.237 0.237 0.237

0.237 r/a r/a r/a

0.0%

35.9%

46.2%

34.2%

79.1%

69.7%

7.9%

0.0%

33.7%

0.0%

0.0%


24/40

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 294.53 365.53 365.53 365.53 365.53

Equity Share Capital 294.53 365.53 365.53 365.53 365.53

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 5,333.23 7,478.91 8,284.41 10,678.40 12,470.01Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 5,627.76 7,844.44 8,649.94 11,043.93 12,835.54

Deposits 81,333.4693,661.99 124,915.98 152,034.13 192,396.95

Borrowings 1,640.83 4,802.20 1,142.56 3,927.05 5,636.09

Total Debt 82,974.2998,464.19 126,058.54 155,961.18 198,033.04

Other Liabilities & Provisions 6,062.19 7,083.90 8,437.70 12,594.41 16,538.15

Total Liabilities 94,664.24113,392.53 143,146.18 179,599.52 227,406.73

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 2,712.32 3,333.43 6,413.52 9,369.72 10,596.34

Balance with Banks, Money at Call 6,541.88 10,121.21 11,866.85 12,929.56 13,490.77

Advances 43,400.3859,911.78 83,620.87 106,701.32 143,985.90

Investments 37,074.4435,114.22 34,943.63 43,870.07 52,445.88

Gross Block 1,707.68 1,873.17 2,244.62 3,787.14 3,954.13

Accumulated Depreciation 846.88 952.44 1,155.81 1,360.14 1,644.41

Net Block 860.80 920.73 1,088.81 2,427.00 2,309.72

Capital Work In Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 4,074.41 3,991.16 5,212.50 4,301.83 4,578.12

Total Assets 94,664.23113,392.53 143,146.18 179,599.50 227,406.73

RATIO ANALYSIS

As on 31-Mar-09 31-Mar-08 31-Mar-07

Profitability

Interest Income/Total Income (%) 84.60 85.20 86.70

Non Interest Income/Total Income (%) 15.40 14.80 13.30

Reported Net Profit/Total Income (%) 12.50 10.40 9.90

Net Interest Income/Total Income (%) 28.70 28.20 34.40

Net Interest Margin (%) 3.60 3.70 4.30

Return Related

ROE (%) 17.40 13.00 11.90

ROA (%) 1.00 0.80 0.70

Leverage & Capital Measures


25/40

Customer loans/deposits (%) 74.80 70.20 66.90

Investments/Deposits (%) 27.30 28.90 28.00

Total Liabilities/Net worth 17.70 16.30 16.50

Growth (%)

Growth in Interest Income 27.75 31.20 27.72

Growth in Interest Expenses 26.15 45.61 40.04

Growth in Employee cost 23.34 9.71 7.89

Growth in PAT 55.15 39.85 24.13

Growth in Deposits 26.55 21.71 33.37

Growth in Borrowings 43.52 243.71 --

Per Share

Book Value Per Share (Rs) 351.10 302.10 236.60

Earnings Per Share (Rs) 60.90 39.30 28.10

Dividend Per Share (Rs) 10.50 9.30 6.90

PROFIT/LOSS A/C

31-Mar-09(12) 31-Mar-08(12) 31-Mar-07(12)

Profit/Loss A/C Rs. mn %OI Rs. Mn %OI Rs. mn %OI

Interest Income Earned 150915.77 84.55 118134.77 85.21 92126.37 88.70

Commission, Exchange and Brokerage Income 7455.04 4.18 5401.68 3.90 4728.50 4.55

Lease Income 0.00 0.00 0.00 0.00 0.00 0.00

Dividend Income 322.24 0.18 109.38 0.08 318.72 0.31

Miscellaneous Income 19799.30 11.09 14999.30 10.82 6685.19 6.44

Other Income 27576.58 15.45 20510.36 14.79 11732.41 11.30

Total Income (OI) 178492.35 100.00 138645.13 100.00 103858.78 100.00

Interest Expenditure 99681.68 55.85 79016.71 56.99 54265.57 52.25

Employee Expenditure 23481.33 13.16 18037.64 13.01 16440.63 15.83

Depreciation 2305.03 1.29 2319.96 1.67 1942.85 1.87

Other Operating Expenditure 9974.26 5.59 8985.32 6.48 7059.65 6.80

Provision and Contingencies 20778.04 11.64 8213.99 5.92 7607.43 7.32

Total Expenditure 156220.34 87.52 116573.61 84.08 87316.14 84.07

Pretax Income 22272.01 12.48 22071.52 15.92 16542.64 15.93

Tax 0.00 0.00 7716.30 5.57 6278.00 6.04

Extra Ordinary and Prior Period Items Net 0 0.00 0 0.00 0 0.00

Net Profit 22272.02 12.48 14355.22 10.35 10264.65 9.88

Adjusted Net Profit 22272.02 12.48 14355.22 10.35 10264.65 9.88


26/40

Dividend Preference 0.00 0.00 0.00 0.00 0.00 0.00

Dividend - Equity 3835.56 2.15 3409.39 2.46 2524.58 2.43

diff.2005-06 diff.06-07 diff.07-08 diff.08-09 %change05-06 %chnage06-07 %change07-08 %chnage08-09

71 0 0 0 24.1062031 0 0 0

71 0 0 0 24.1062031 0 0 0

0 0 0 0

0 0 0 0

2,145.68 805.5 2393.99 1791.61 40.2322795 10.77028604 28.89753163 16.77788807

0 0 0 0

2,216.68 805.5 2393.99 1791.61 39.38831791 10.26841942 27.67637695 16.22257656

12,328.53 31253.99 27118.15 40362.82 15.15800508 33.36891518 21.709112 26.54852565

3,161.37 -3659.64 2784.49 1709.04 192.6689541 -76.20757153 243.7062386 43.51969035

15,489.90 27594.35 29902.64 42071.86 18.6683128 28.02475702 23.72123301 26.97585386

1,021.71 1353.8 4156.71 3943.74 16.85381026 19.11094171 49.26354338 31.31341603

-18,728.29 29753.65 36453.34 47807.21 -19.78391207 26.23951507 25.46581404 26.61878495

0.00 0 0 0

0.00 0 0 0

0.00 0 0 0

-621.11 3080.09 2956.2 1226.62 -22.89958412 92.4000204 46.093253 13.0913197

-3,579.33 1745.64 1062.71 561.21 -54.7140883 17.24734493 8.955282994 4.340518935

-16,511.40 23709.09 23080.15 37284.88 -38.04436735 39.573336 27.6009446 34.94332107


27/40

1,960.22 -170.59 8926.44 8575.81 5.287254507 -0.485814579 25.54525675 19.54820223

-165.49 371.45 1542.52 166.99 -9.6909257 19.83002077 68.72076343 4.409396009

-105.56 203.37 204.33 284.27 -12.46457585 21.35252614 17.67851117 20.90005441

-59.93 168.08 1338.19 -117.28 -6.962128253 18.25508021 122.9039043 -4.832303255

0.00 0 0 0

83.25 1221.34 -910.67 276.29 2.043240616 30.60112849 -17.47088729 6.422615492

-18,728.30 29753.65 36453.32 47807.23 -19.78392472 26.23951507 25.46580007 26.61879905

0.00 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!

BUSINESS PERFORMANCE ACCORDING TO BALANCE SHEET:

The Bank continued its journey of making sustained growth by setting new milestone of business size recording

global business growth of 30% during 2008-09. The domestic deposits of the Bank increased by 23.6% and

domestic advances rose by 29.3% - way ahead of the Indian banking industrys average growth. The priority

sector credit surpassed the mandatory requirement and registered a growth rate of 23.9% during the year 2008-

09. The Bank recorded a growth of 24.2% in SME credit, 27.9% in farm credit and 16.3% in retail credit

reflecting a balanced growth of its loan book.

The level of Banks Net Profit at Rs 2,227.20 crore for the year 2008-09 reflected a robust year-on-year growth

of 55.2%. During 2008-09, the Banks overseas business grew by 46.3% partly reflecting an impact of 25.0%

depreciation of rupee against the US dollar on rupee balance sheet. The overseas business contributed 22.5% to

the Banks Global Business and 21.2% to the Banks Gross Profit during 2008-09.

As the Banks primary objective is to grow with quality, the Bank focused on containing the impaired assets to

the minimum possible level. While the Gross NPA in domestic operations stood at 1.51% at end-March 2009,

the same for Overseas Operations was just 0.51%. The global Net NPA too was pegged at 0.31% by the year-

end 2008-09 in line with the promise given by the Bank to its stakeholders.

SEGMENT-WISE PERFORMANCE

The Segment Results for the year 2008-09 of Rs 3,342.95 crore have been contributed by the Treasury

Operations to the extent of Rs 1,019.57 crore, Rs 845.22 crore by Corporate/ Wholesale banking, Rs 1,406.50crore by Retail Banking and Rs 1,769.39 crore by Other Banking Operations. The Bank earned the Profit after

Tax of Rs 2,227.20 crore after deducting Rs 1,697.74 crore of unallocated expenditure and Rs 1,115.75 crore as

provision for tax.


28/40

Resource Mobilisation & Asset Expansion

The share of Banks deposits in total resources stood at 84.60% as of 31st March 2009. The total deposits grew

from Rs 1,52,034.13 crore to Rs 1,92,396.95 crore, reflecting a growth of 26.55% over the previous year. Of

this, Savings Bank Deposits an important constituent of low cost deposits grew by 18.76% - from Rs35,776.38 crore to Rs 42,487.28 crore. The share of low cost deposits (Current & Savings) in Total Global

Deposits was at 29.59% and in Domestic Deposits at 34.87%. The banking industry as a whole witnessed a

movement from low cost deposits to term deposits during the year, in view of sharp increase in the interest

rates offered on term deposits during 2008-09.

The Banks Global Advances expanded by 34.94% during 2008-09 led by 29.32% expansion in domestic

advances and 56.3% expansion in overseas advances. It may be noted that expansion in overseas advances also

factors in the impact of currency depreciation (of the order of 26.9% against the US dollar) during 2008-09.

IPO ISSUES OF BANK OF BARODABank of Baroda-

Issue details

Bid/Issue opens on : January 16, 2006

Bid/Issue closes on : January 20, 2006

Price Band : Rs 210 to Rs 230.

Minimum application : 30 equity shares and in multiples of 30 equity shares thereafter.

Maximum Retail Bid Amount : Rs. 1,00,000.

Present Equity Capital comprises 1500,000,000 Equity shares of Rs.10/- each fully paid up

Issue size of 71,000,000 Equity Shares at a face value of Rs 10 each through the 100 per cent book-building

route


29/40

BACKGROUND

Bank of Baroda is among the top five PSU banks in the country with considerable presence outside India and

services over 25 million customers across India. The bank has a network of 2694 branches in India spread over

27 states and 5 union territories. In has an international presence in 19 countries and government of India

presently holds 66.8 per cent stake in it. BOB derives 85% of its revenues from domestic operation while the

balance rest is contributed by international operations.

OBJECTS OF THE ISSUE

The objects of the issue are to augment its capital base to meet the future capital requirements arising out of the

implementation of the Basel II standards and the growth in assets, primarily loan and investment portfolio due

to the growth of the Indian economy and for other general corporate purposes including meeting the expenses

of the Issue.

KEY INVESTMENT RATIONALE

Indian economy has grown at a sustained pace over the last few years with GDP growing at 6.9% in financiayear 2005 and 8.5% in financial year 2004. A key beneficiary of this economic boom was the banking sector,

which posted credit growth of more than 30%. The banks have been able to post higher jump in profitability

due to sustained credit growth, which continues to be fuelled by retail and SME (Small & Medium Enterprise)

financing. The incremental credit deposit ratio has climbed above 80% along with jump in deposit

mobilization. This credit boom also aided the banks to improve their asset quality and reduced their

dependence on treasury incomes. We expect the current growth momentum to continue with banks likely to

further grow in size & profitability in years to come.

NEW INITIATIVES TO DRIVE GROWTH

The bank has envisaged growth through remoulding itself from a traditional bank into a bank with an

aggressive retail push, renewed credit thrust and strong branding, which is evident from its new logo of the

Rising Sun. The recent change in top management has brought forth an aggressive ideology, which believes

in taking the bank to the next level. The current management has adopted implementation of core banking

solution (CBS) & result-oriented, performance-driven work culture. The bank has adopted initiative steps by

introduction of 12-and 24-hour branch banking in some branches and expanding its ATM base.

RETAIL THRUST

The bank is targeting 20% savings growth, 40% growth in retail lending around 25% growth in agriculture and30% growth in SME credit. It has tied up with SIDBI to increase its thrust towards SMEs and is also coming

out with new products like Multi-City Cheque Facility for its current account customers. It is likely to open

100 money plexus across the country in the current fiscal to provide the entire range of its retail products under

one roof. Money plexus will be a branch within a branch with a distinct and uniform ambience, and keeping

customer convenience as its prime focus. These factors will drive retail growth and act as a major factor for

driving future earnings growth.


30/40

TECHNOLOGY GROWTH ENABLER

The technology will be another major tool in driving its growth plan. The bank expects to implement CBS in

1,979 branches by FY2009. BOB expects to have around 125 branches under CBS by FY2006 and total of 600

branches with CBS by FY2007.This will result in its customers experiencing a centralized real-time 24x7

banking system and would result in sound customer base. The bank is a PSU, which in itself provides an

element of safety in minds of people when coupled with technology driven business will lead to phenomenal

growth opportunity in the long run.

DE-RISKING OF INVESTMENT PORTFOLIO

BOB transferred securities worth Rs.6617 crore from Available-for-sale (AFS) to the Held-to- Maturity (HTM)

category in Q1 FY06. BOB has ensured that its portfolio is considerably de-risked by transferring these

securities and it need not make significant provision in the current financial year. However, other income wil

decrease as BOB had large amount of trading income in earlier years. This will, however, will be offset by

higher core income growth and improved asset quality.

IMPROVING ASSET QUALITY

The bank has reduced its gross NPA from 10.41% to 7.21% for Q1 FY06 and net NPA for Q1FY 06 have

come down from 2.9 % to 1.41%. The reduced NPA levels would lead increased profitability for BOB.

KEY INVESTMENT CONCERNS

HIGH OTHER INCOME: The bank continues to derive a large part of its income from treasury operations

which contributed 54.54% & 52.81% to its total income in fiscal 2004 and fiscal 2005 respectively. The bank

faces risk of decline in treasury income in the event of firming up of interest rates and would face problems in

replicating the bond gains going forward.

FINANCIALS

During the first half of current fiscal, the bank reported a modest increase in net interest income (NII) by 12%

to Rs 1540cr (Rs 1,371cr) on the back jump in Advances. The non-Interest Income fell sharply by 31% to Rs

518 crore due to lower treasury gains. Operating expenses flared up by 13% to Rs 1108 crore due to increase in

staff cost, technology and brand building exercise undertaken by the bank. Jump in operating expenses &

lower treasury gains lead to a decline of 18 per cent in net profits to Rs 416 crore from Rs 506.3 crore earlier.

VALUATIONS

BOBs core income growth, increased retail penetration & improved asset quality driven by sound technology

base would catapult BOB into the big league. We expect BOB to register a y-o-y growth of 26% in its PAT for

FY 2006. The increased asset quality and retail thrust makes the current valuations of 1.35 x FY06E Book

Value & 1.55 xFY06E Adjusted Book Value relatively attractive. The issue is priced attractively as it discounts

its FY06E Book Value 1.14x at the lower price brand of Rs 210 and 1.25x at the upper price band of Rs 230.

The investors may subscribe from a long-term investment perspective as well as deriving benefits of listing

gains.


31/40

INTERPRETATION

After witnessing a robust average growth of around 8.9% during 2003-04 through 2007-08, the Indian economy

experienced a growth deceleration in 2008-09 primarily on account of a synchronized global slowdown.

Emerging market economies including India suffered primarily due to diminishing export demand and

constrained external financing conditions. For India, the growth slowdown was more pronounced in the secondhalf of 2008-09 triggered by a broad-based industrial slowdown and a contraction in exports for five

consecutive months beginning October 2008. The Reserve Bank of India (RBI) in its Annual Monetary Policy

for 2009-10 has projected Indias GDP growth for 2008-09 in the range of 6.5% to 6.7%.

At the sectoral level, the performance of agriculture sector during 2008-09 was satisfactory. The Central

Statistical Organisation (CSO) has projected agriculture and allied activities to grow by 2.6% in 2008-09.

According to the Second Advance Estimates of GDP, the total foodgrains production during 2008-09 would be

around 227.9 million tonnes as against 230.8 million tonnes in 2007-08.

Industrial sector, however, experienced a loss of growth momentum during 2008-09 with the year-on-yearexpansion being 2.4% as against 8.5% in 2007-08. Similarly the core or infrastructure industries recorded a

lower growth of 2.7% in their production during 2008-09 as compared to 5.9% during 2007-08. Within the core

sector, slowdown was more pronounced for steel and crude oil segments. The primary contributor to industrial

slowdown was a slowdown in investment and private consumption demand. The government consumption

expenditure, however, remained buoyant on account of fiscal stimulus measures and committed expenditure.

Corporate performance too remained subdued throughout the year, though the third quarter of 2008-09 was the

worst in terms of both the sales turnover and profitability.

After rising to nearly 13.0% (y-o-y) in August 2008, headline inflation (Wholesale Price Index) dropped to0.26% as on March 28, 2009. With decreasing commodity prices and weaker domestic demand, inflationary

environment is weaker domestic demand, inflationary environment is expected to remain benign in the coming

six months.

Hit by the slump in global demand, Indias merchandise exports ended the year 2008-09 at U.S. $168.7 billion,

up a modest 3.4% from U.S. $163 billion a year ago. The imports too registered a limited growth of 14.3% (y-o-

y). Indias trade deficit for 2008-09 widened to U.S. $119.05 billion from U.S. $88.52 billion a year ago. The

current account deficit is projected at about 3.0% of GDP in 2008-09 primarily due to a markedly higher oil

import bill (especially in the first six months of 2008-09).

Indian economy also suffered on account of the reduced inflow of the long and short-term debt and reversal of

portfolio inflows during 2008-09. A positive development was, however, relative resilience of FDI inflows (US

$27.38 billion in 2008-09) in the face of reversal of capital flows, reflecting the attractiveness of India as a long

term investment destination.

While Indias foreign exchange reserves declined from a peak f $315 billion in May 2008 to $252.33 billion at

end-March, 2009 they remain adequate compared to the countrys gross financing requirement and imports.


32/40

Moreover, Indias external debt and debt sustainability indicators continue to remain at comfortable levels and

ensure external stability.

As a result of the global crisis, the benchmark stock market index declined by over 38.0% in 2008-09 and the

rupee depreciated 26.4% against the U.S. dollar. In early 2009-10,however, the rupee and the stock markets

have stabilized to a great extent.

During the year 2008-09, the monetary policy stance of RBI (Reserve Bank of India) shifted from concernsrelated to inflation in the first half of 2008-09 to maintaining financial stability and arresting the growth

moderation in the second half. The RBIs measures including cutting policy rates, lowering the cash reserve

ratio and statutory liquidity ratio and easing controls on capital inflows eased the domestic liquidity pressures

that appeared in September and October and brought down inter-bank rates. Through the RBIs policy actions,

the cumulative primary liquidity potentially available to the financial system is almost 7.0% of GDP.

In response to the global crisis, the Government too launched three fiscal stimulus, which came on top of an

already announced expanded safety-net programme for the rural poor, the farm loan waiver package and payout

following the Sixth Pay Commission Report. The combined impact of these fiscal measures is around 3.0% of

GDP.

Indian economy has to face several challenges, going forward, in the context of the ongoing global financial

crisis such as stepping up public and private investment demand, maintaining adequate liquidity in the system in

view of higher government spending, preserving financial stability and benign interest rate environment, etc.

Going forward, the fiscal and monetary stimulus initiated during 2008-09 combined with lower commodity

prices would cushion the economic downturn by stabilizing domestic economic activity. Accordingly, with the

assumption of normal monsoon, the RBI has placed real GDP growth at 6.0% for 2009-10 and inflation (WPI)

at 4.0% by end of fiscal 2010.

NET PROFIT

The Net Profit of International Operations during the year increased by 23.17% (y-o-y). This is in spite of the

huge requirement of provisioning due to Mark to Market of Investments. The Bank does not have exposure to

subprime assets. Also, its exposure to Derivatives is only by way of investments in Credit Linked Notes

(CLNs) of Indian Corporate of repute and where it is confident of the underlying credit quality. The investments

have been Marked to Market based on Issuers/Traders Quotes, as impact was felt on valuation as markets

were quoting two way quotes at wide variance. The provisioning made by the Bank in the current year is on

account of a decline in present value and is likely to get reversed on maturity of the investments. The

contribution of international operations to the Banks global Net Profit moderated to 18.86% in 2008-09.

PERFORMANCE OF INDIAN BANKING SECTOR IN 2008-09

Indian banking industry faced many uncertainties during 2008-09 in the face of tight market liquidity in the

global financial markets. The RBIs prompt and relevant measures ensured adequate domestic and foreign

liquidity to Indian banking industry so that the flow of credit to productive sectors would not suffer much. Yet,

on account of the severe global economic slowdown and its spillover effects on India, growth of bank credit to


33/40

commercial sector decelerated in 2008-09.Moreover, expansion in net foreign exchange assets of the Indian

banking industry moderated to a large extent.

Bank credit to the commercial sector increased by 16.9% (y-o-y) in 2008-09 as against 21.0% a year ago. Non-

food credit growth of commercial banks picked up in the first two quarters of 2008-09 on account of a sizeable

increase in credit to petroleum sector and also as a substitution for funds raised by the corporate from non-

banking and external sources. However, non-food credit growth for the year as a whole was 17.5% at end-

March, 2009 as against 23.0% a year ago. The lower expansion of credit compared to deposit mobilization at19.8% (y-o-y) resulted in a decline in incremental credit-deposit ratio (y-o-y) of scheduled commercial banks

(SCBs to 64.4% at end-March 2009 as against 73.6% at end-March 2008.

The RBI data shows that while the deceleration in bank credit was observed across the banking system, it was

shaper for the private and foreign banks.

The SCBs investment in SLR securities as a per cent of their net demand and time liabilities increased to

28.1% at end-March 2009 from 27.8% a year ago due to lower credit expansion in 2008-09.

Data on sect oral deployment of credit of SCBs shows that during 2008-09, the incremental credit expansionwas primarily led by infrastructure, petroleum, coal products & nuclear fuels, iron & steel, engineering

construction and chemical & chemical products industries. While the credit flows to small industries and

personal borrowers moderated, those to agriculture sector posted an increase.

The Indian banks, in general, posted healthy financial results during 2008-09 compared to their global peers

despite challenging economic conditions. The outlook for Indian banking industry remains positive in 2009-10

on the backdrop of its stricter prudential regulation by the RBI, sound financial indicators and stable political

regime.

Business and Financial Metrics

Metric (in Billions INR) 2005 2006 2007 2008 2009

Total Interest Income 64.31 71.00 92.13 118.13 150.92

Non - Interest Income 13.05 11.92 13.82 20.51 27.58

Total Revenue 77.36 82.92 105.94 138.65 178.49

Cost Income ratio 46.24% 55.43% 51.30% 50.89% 45.38%

Net Profit 6.768 10.50 10.26 14.36 22.27

Credit - Deposit Ratio 55.82% 67.15% 74.35% 77.32% 82.36%


34/40

Net NPA's(%) 1.45% 0.87% 0.60% 0.47% 0.31%

Return on Average Assets (%) 0.71% 0.73% 0.72% 0.80% 0.98%

Total Assets 946.64 1,133.93 1,431.46 1,796.00 2,274.07

In FY2009, Total revenue grew by 28.7% to Rs.178.55 billion from Rs. 138.64 billion in FY2008, led by

33.10% and 34.50% growth in its total interest and Non-Interest Income respectively. In the period from 2005-09, the bank grew by 28% every year, and interest income growth outpaced the non interest income growth.

During 2008-09, Non-Interest income growth was largely driven by strong growth of 39.50% in fees income

Despite the healthy growth in advances, the bank was able to maintain current account and savings account

(CASA) at 34.90% reduced marginally from 35.80% in FY2008, which is still the smallest fall compared to its

peers. The highest low-cost deposit among public sector banks helped the Bank achieve a net interest margin of

2.91% compared to 2.90% in FY2008.


35/40

Total Revenue and total Operating Profit of Indian bank Breakdown by Segment during the year 2008-2009

Where other large banks achieved less than 30% growth in advances, Bank of Barodas advances portfolio grew

34.90% to Rs.1439.86 billion, which was the highest growth recorded in FY2009. Overseas loan book have

grown by 56% largely due to rupee depreciation during the year. Even in the financial crisis, the bank was able

to increase its return on assets to 1.09%, from 0.89% propelled by 34.90% increase in total advances. Due to its

diversified loans portfolio and better asset management skills, the Bank reduced its Non-Performing Assets

(NPAs) to 0.44% from 0.59%, which was lowest among its peers like State Bank of India and Punjab National

Bank.

In FY09, the Bank reported a net profit of Rs 22.75 billion driven by strong growth in advances, higher

treasury, and loan provisioning. The expenses on salaries and other operating heads grew by 21.8% and 10.9%

respectively in the fourth quarter of 2009. The Bank managed expenses growth at lesser rates than growth in

interest and other incomes which is one of the most important reasons behind its high profit growth.

NEWS OF BANK OF BARODA

Bank of Baroda Sees Net Interest Margin at 3.45-3.5%

State-run Bank of Baroda expects net interest margin in FY11 to be at 3.45% - 3.5%, Chairman and Managing

Director MD Mallya said on Wednesday.

The bank is planning to add 400 new branches in the current year, he told reporters.

Analysis


36/40

The bank baroda expects net interest margin in FY11 to be at 3.45% - 3.5% by this the share price of bank of

baroda. The bank can also open new policy because by this the image of bank will be increase.

Bobibanking- Bank of Baroda Internet Banking

Bobibanking means Bank of Baroda Internet banking. Customer of this bank will now be able to access their

bank accounts and make any bank transactions 24/7 online

Customers can login to the official website https://www.bobibanking.com/ for online banking. Customers just

need to enter their usernames and passwords and then start availing the banking facility.

Other facilities which are available in the website are that customers can also book railway tickets through this

website and customers will also be able to pay their commercial taxes through this portal.

It also has different facilities like Baroda easy pay, Baroda eshoppe and temple donation. Customers can even

make temple donations through this website. Customers will also be able to download various registration forms

here.

ANALYSIS

Bank of baroda is entering in net banking by this the many customer will use this service and many customer

will open the account in baroda and baroda will increase the business world wide.

Bank of Baroda Exposure to Dubai World at $200 Mln - India Minister

Friday, Apr 23, 2010

NEW DELHI (Dow Jones)--State-run Bank of Baroda (532134.BY) has a $200 million exposure as of Nov. 30

2009 to Dubai World, Nakheel and its group companies, Junior Finance Minister Namo Narain Meena saidFriday.

The State Bank of India (500112.BY) has an exposure of $50 million to Dubai World and the associate

companies, while ICICI Bank Ltd. (532174.BY) has an exposure of $28.5 million, he told lawmakers in the

lower house of parliament.

Meena said HDFC Bank Ltd. (500180.BY) has an exposure of $4.23 million to Dubai World and its associates

Investor confidence worldwide was shaken in November after Dubai announced that it was seeking a six-month

standstill on the debt ofDubai World, its flagship conglomerate.

Bank of Baroda cancels plan to sell bonds

Hong Kong/Singapore: Bank of Baroda has cancelled its planned benchmark sale of bonds denominated in

dollars, according to three people familiar with the matter.

The people didnt say whether the sale will be rescheduled, nor did they provide further details.

The bank had planned to sell five-year notes priced to yield about 250 basis points over the benchmark mid-

swap rate, people familiar with the deal said, declining to be identified before a public announcement.


37/40

A benchmark sale is typically $500 million (Rs2,330 crore) in size.

India US Banking finance

HOUSTON: Bank of Baroda plans to open a branch here to serve the growing number of Indian origin

customers and expand its services in the US.

Bank of Baroda, which dubs itself as "India's international bank," has a history of providing financial services

for Indian expatriates.

It has now approached the Texas Department of Banking to provide small business services targeting the Indian

American community here. "The Houston branch will enable Bank of Baroda to better serve the needs of the

large and growing number of persons of Indian origin," a bank document said.

"The branch proposes to reach out to small businesses in the local area to provide timely and adequate

assistance with starting their business by utilising the small business administration (SBA) facility," according

to the filing before the Texas Department of Banking.

Indian Americans feel that the opening of the branch could usher in a positive tone and lead various other

financial institutions to establish their presence in Houston.

The state's regulatory body still has to process the application, which can take weeks or even months. The bank

has also filed an application with the Board of Governors of the Federal Reserve System.

The bank has 42 overseas branches and operates 17 retail banking subsidiaries, located primarily in Africa.

K D Lamba, chief executive officer and general manager of the bank's New York-based US operations, will

head a four-person staff in Houston until a formal branch manager is appointed, the application stated.

However, this filing isn't the first time the bank's US wing has submitted an application to move into the

Houston market. The institution filed and then withdrew an application to set up a local branch in 2009.

Bank of Baroda opens two branches in Trinidad in a day

Bank of Baroda has created history by opening two branches in one country in a day, according to M.D. Mallya,

global chairman and managing director.

Mallya underscored this point in an address at the opening of the Bank of Barodas second branch inChaguanas, Central Trinidad, Friday. The other one was opened in San Fernando.

Mallya praised the government of Trinidad and Tobago and the central bank for their cooperation in bringing

this project to its conclusion.

We have been able to assess and analyse the social ethos of the people of Chaguanas. We will continue in the

same trend that we started when we opened our first branch in Port-of-Spain in October 2007, he said.


38/40

Bank of Baroda has over 36 million customers in over 25 countries across the globe. We have survived two

world wars and the great depression among other serious economic issues. We will continue to serve the people

as we have done so far, Mallya said.

Trinidad and Tobagos Minister of Trade and Industry and Minister in the Ministry of Finance Senator Mariano

Browne praised the initiatives of the Bank of Baroda for its insight in investing in Trinidad and Tobago.

He hailed the recent India Trade Mission to Trinidad and Tobago as a success.

Browne said that India was the fourth largest trading country in the world, and he hoped Trinidad and Tobago

will continue to meet Indian businessmen on a regular basis.

He said that at the forthcoming Commonwealth Heads of Government Conference in this country Nov 26-29,

more than 1,000 businessmen are expected to discuss multilateral trading agreements, of which Indian

businessmen would be a part.

We will continue to work with the Bank of Baroda. We will give it our support as it has demonstrated a spirit

of innovation.

Indian High Commissioner Malay Mishra said that Bank of Baroda had created history by opening two

branches in one country in the same day. He urged the bank to extend its operations to other sectors of the

economy.

Mishra said that Bank of Baroda continued to show its marketing skills to the people of Trinidad and Tobago

adding that less than two years after opening its first branch in Port-of-Spain, it has demonstrated confidence in

the local economy by opening two more.

MP for Chaguanas West Jack Warner saw great opportunities for the branch in the area, which had a primarilyagriculture-based economy. Warner said the banks marketing initiatives must focus on the farmers and the

small businessmen, giving them priority loans at affordable rates.

This countrys Indian Diaspora came from Uttar Pradesh and Bihar between 1845 and 1917 to work on the

sugar plantations and to boost agriculture. Around 44 percent of the 1.3 million people in Trinidad and Tobago

are of Indian descent.

Fire in Bank of Baroda's Bhubaneswar Branch

Report by Dipti Ranjan Kanungo, Bhubaneswar: In Wednesday morning the Bank of Baroda, BapujeenagarBranch, Bhubaneswar set fired due to short circuit of Electric wires. Local peoples informed the Fire station.

After receiving the information, the firemen immediately rushed to the spot. They controlled the fire but the

furniture, fixtures, and computers of lakhs of Rupees has been damaged.

Bank Saw A Net Profit Growth Of 37.32% In 2009-10

Mumbai: Bank of Baroda (BoB) posted a better-than-expected net profit of Rs 906 crore in January-March, up

20.41% on year helped by growth in net interest income. Net interest income grew 18.6% in January-March to


39/40

Rs 1,745 crore from Rs 1,471 crore last year.The bank saw a net profit growth of 37.32% in 2009-10 at Rs3,058.33 crore as against Rs 2,227.20 crore in FY09.

The banks initiatives in terms of shedding bulk business and focusing on current account and savings account

(CASA) growth have started to pay off, said chairman and managing director M D Mallya. Going ahead, the

bank hopes to continue lowering fund costs by cutting back further on bulk deposits, he said.

Net interest margin (NIM) grew 10 basis points to 3.50% in the quarter ended March. The bank is looking atmaintaining its NIM at 3.45-3.5%. In 2009-10, NIM was 3.12%.

The lenders loan book grew 22.2% on year to Rs 1.75 lakh crore, while deposit base expanded 25.2% to Rs

2.41 lakh crore. Inthe March quarter, treasury gains jumped 82% on year to Rs 62 crore. Mallya said the bank

had made provisions against mark-to-market losses and would remain insulated even if yields touched 8.5%

Net non-performing assets as on March-end stood at 0.34%, versus 0.31% last year. Gross NPAs rose to 1.36%

in January-March, from 1.27% a year ago. The bank also declared a Rs 15 per share dividend for 2009-10.

NW18

The Bank Is a Member of Financial Services Compensation Scheme

We are covered by the Financial Services Compensation Scheme (FSCS).The FSCS can pay compensation to

depositors if a bank is unable to meet its financial obligations. Most depositors including most individuals and

small businesses are covered by the scheme.

In respect of deposits, an eligible depositor is entitled to claim up to 50,000. For joint accounts each account

holder is treated as having a claim in respect of their share so, for a joint account held by two eligible

depositors, the maximum amount that could be claimed would be 50,000 each making a total of 100,000

The 50,000 limit relates to the combined amount in all the eligible depositors accounts with the bank

including their share of any joint account, and not to each separate account.

For further information about the scheme (including the amounts covered and eligibility to claim) refer to theFSCS website www.FSCS.org.uk or call 020 7892 7300 or 0800 678 1100.

Bank of Baroda Builds On Good Q1

Bank of Baroda surged 5.12% to Rs 226.05 on Friday after the company posted good Q1 June 2006 results.

As many as 7.10 lakh shares were traded on the BSE

The stock has been on recovery path after hitting the low of Rs 176.85 on 19 July due to overall weakness in the

market. Here, the stock found support and rose to higher ground to settle at Rs 226.05 on 28 July 2006 onexpectation of good Q1 results.

Bank of Baroda (BoB) has posted a net profit growth of 4% to Rs 163.32 crore for Q1 June 2006 compared to

Rs 156.94 crore for Q1 June 2005. Total income during the period has increased from Rs 1882.01 crore to Rs

2297.62 crore.

BoB had formally signed Life Insurance Company


40/40

As per reports, in June, BoB had formally signed a pact with HDFC Standard Life to market the private life

insurance company's banc assurance products through its network of 2,700 branches. However, the bank has

already sold 1,200 policies (of the private insurer) with sum assured of Rs 112 crore in the last 21 days. BoB

also said its plans to set up a life insurance company through a joint venture remain intact.

On 4 April, BoB had acquired 49,34,200 shares of BoB Housing Finance (BoBHFL), making it a 100%

subsidiary of itself. The company has further informed that they will initiate further steps for merging BOBHFL

with the bank.

In March, the company had raised FCNR(B) rates with effect from 1 April. BoB has hiked rates on dollar

deposits for one year to less than two year to 5.15% from 4.90%, for two years to less than three years to 5.13

from 4.88% and, for three years to five years - 5.11% from 4.86%.

Earlier this year, Bank of Baroda (BoB) had come out with a follow-on issue of 7.1 crore equity shares of Rs 10

each on 16 January. The proceeds would be used to help public sector bank augment its capital to meet the

Basel-II norms and grow its assets and investment

fm termpaper

Documents

Transcript of fm termpaper