Bank of Baroda (BANKBARODA) Q4 96/97 earnings summary

Executive summary

• FY1996-97 total business reached ₹48,688.41 crore; net profit was ₹276.53 crore, up 32.8% YoY, before ₹85.74 crore interest refunded to the Government on redeemed recapitalisation bonds.

• Global deposits grew 13.3% to ₹32,156.78 crore, while global advances rose 3.3% to ₹16,531.63 crore amid weak credit demand.

• A ₹850 crore public equity issue was fully subscribed despite depressed market sentiment; the Government held 66.22% after the issue and capital return.

Financial highlights

• Total income rose to ₹4,220.39 crore from ₹3,996.37 crore; total expenditure increased to ₹3,943.86 crore from ₹3,788.10 crore.

• Operating profit was ₹776.44 crore; profit for the year was ₹276.53 crore, up ₹68.26 crore YoY, before the ₹85.74 crore interest refund to the Government.

• After the interest refund and ₹40.56 crore pro-rata dividend refund from the Government, profit available for appropriation was ₹231.36 crore.

• Net profit per employee rose to ₹0.60 lakh from ₹0.45 lakh; EPS was ₹10.90 versus ₹3.60, and book value per share was ₹65 versus ₹23.90.

Outlook and guidance

• Management expected sustained business growth with higher profitability in FY1997-98, citing improved capital adequacy and resource conditions.

• The 1996-2000 Corporate Strategic Plan was intended to support stronger performance and improved investor earnings in coming years.

• Growth prospects for the Indian economy in FY1997-98 were described as promising, supported by a growth-oriented Union Budget and infrastructure and social-sector priorities.