Bank of Baroda (BANKBARODA) Q4 98/99 earnings summary

Executive summary

• FY1998-99 operating profit rose 17.28% to Rs. 945.30 crore; net profit fell 8.65% to Rs. 421.44 crore, partly reflecting prior-year investment-provision income.

• Capital adequacy reached 13.30%; deposits grew 14% to Rs. 44,614.04 crore, while net NPLs rose to 7.70% of net advances.

Financial highlights

• Total income increased to Rs. 5,399.73 crore from Rs. 4,714.20 crore; total expenses rose to Rs. 4,454.43 crore from Rs. 3,908.15 crore.

• Operating profit was Rs. 945.30 crore versus Rs. 806.05 crore; net profit was Rs. 421.44 crore versus Rs. 461.35 crore.

• Prior-year net profit was adjusted from Rs. 458.73 crore to Rs. 461.35 crore after reclassifying Rs. 2.62 crore of overseas statutory reserves as an appropriation.

• Net profit comparison includes Rs. 168.66 crore of prior-year income, after tax, from write-back of investment depreciation provisions.

• Balance-sheet size rose to Rs. 52,232.40 crore from Rs. 45,841.87 crore; net worth reached Rs. 2,587.05 crore.

Outlook and guidance

• Vision 2005 was planned as a five-year strategy focused on technology, people, risk management and qualitative and quantitative growth.

• FY2000 priorities included global treasury integration, stronger risk tools and asset-liability management, branch computerisation, and staff capability-building.

• A 30% dividend on 29.6 crore equity shares, amounting to Rs. 88.80 crore, was recommended subject to RBI approval.