Bank of Baroda (BANKBARODA) Q4 97/98 earnings summary

Executive summary

• FY1997-98 net profit rose 65.9% YoY to Rs. 458.73 crore, a record result attributed to higher business growth and improved operating efficiency.

• Global business reached Rs. 58,929.32 crore; deposits were Rs. 39,125.83 crore and advances Rs. 19,803.49 crore at 31 March 1998.

• The Board proposed a 30% dividend, subject to Reserve Bank of India approval.

Financial highlights

• Total income was Rs. 4,714.20 crore, up from Rs. 4,220.39 crore; total expenditure was Rs. 4,255.47 crore, up from Rs. 3,943.86 crore.

• Net profit was Rs. 458.73 crore vs Rs. 276.53 crore in FY1996-97; operating profit was Rs. 806.05 crore.

• Excluding Rs. 92.12 crore of additional issue-expense, pension-fund and leave-encashment charges, gross profit would have been Rs. 898.17 crore.

• Interest earned was Rs. 4,170.91 crore; other income was Rs. 543.29 crore.

Outlook and guidance

• The national growth outlook targeted GDP growth of 6–7%, with fiscal deficit at 5.6% and inflation projected at 6–8% for the current year.

• Vision 2000 priorities included business diversification, new products and services, and potential entry into insurance, infrastructure finance and leasing, supported by risk management.

• Functional autonomy was expected to support stronger competition, business growth and profitability in coming years.