Bank of Baroda (BANKBARODA) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 net profit nearly doubled to ₹545.93 crore; operating profit reached ₹1,309.26 crore, up 26.3% YoY.

• Global credit grew 22.8%, deposits 14.3% and investments 20%; the balance sheet expanded 12% to ₹70,910.07 crore.

• Performance improved despite slow economic growth and lower banking-sector resource flows; management emphasized retail expansion, efficiency and business transformation.

Financial highlights

• Total income was ₹6,948.71 crore vs ₹6,463.62 crore; interest earned was ₹5,955.55 crore vs ₹5,757.34 crore.

• Net profit was ₹545.93 crore vs ₹301.13 crore; the prior-year figure included ₹26.47 crore transferred from the Investment Fluctuation Reserve.

• Operating expenses fell 2.8% YoY, including a 7.8% decline in staff expenses; total expenses rose 3.9% as interest expense increased 6.7%.

• Profit on sale of investments rose to ₹415.38 crore from ₹101.97 crore.

Outlook and guidance

• Business Transformation Programme, supported by an IT consultancy, was under phased implementation; priorities included customer focus, faster decisions, flexible service and stronger profitability.

• Long-term technology plans targeted core banking in urban and metro centres, basic IT in semi-urban and rural centres, and expanded ATM, internet and telephone banking channels.

• ISO 9001:2000 certification covered 15 branches by March 2002; the target was 69 branches by March 2003.

• Planned offices in China, Malaysia and Tanzania were subject to regulatory approval.