Bank of Baroda (BANKBARODA) Q4 99/00 earnings summary

Executive summary

• FY00 operating profit reached ₹1,051.67 crore, up 11.3% YoY; net profit was ₹502.77 crore, up 19.3%.

• Balance-sheet growth was 12% amid consolidation and expense control; domestic advances grew ~18% YoY by year-end as credit expansion accelerated in H2.

• Strategy centered on technology, people and customer service, with new delivery channels and diversified financial products planned.

Financial highlights

• Total income rose 8.6% to ₹5,861.61 crore; interest income increased 8.3% and non-interest income 10.9% YoY.

• Operating expenses rose 8% despite wage revision costs; provisions and contingencies were ₹548.90 crore versus ₹523.86 crore in FY99.

• Global deposits increased 15% to ₹51,308.19 crore; global advances rose 15.7% to ₹24,392.91 crore at March 2000.

• Savings deposits grew 19.1% during FY00; total income included a 10.9% contribution from non-interest income.

Outlook and guidance

• Technology upgrades were budgeted at ₹250 crore over 18–24 months; plans included computerizing ~600 branches and increasing TBM branches to 466 by March 2001 from 162 in March 2000.

• Vision 2005 priorities included retail banking, capital-market services, investment banking and payment products, supported by process redesign and risk management.

• Planned new businesses included insurance, gold products, retail lending, internet services and capital-market products, potentially through strategic alliances.

• A final dividend of 15% was recommended on top of the 25% interim dividend, subject to RBI clearance.