bank of baroda result updated

8/3/2019 Bank of Baroda Result Updated

1/12

Please refer to important disclosures at the end of this report 1

Particulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)NII 2,567 2,297 11.7 2,038 25.9Pre-prov. profit 2,140 1,831 16.9 1,657 29.2

PAT 1,166 1,033 12.9 1,019 14.4Source: Company, Angel Research

For 2QFY2012, Bank of Baroda reported reasonable 14.4% yoy growth in its net

profit to `1,166cr, above our estimate of `1,088cr, primarily due to considerably

better operating income than built in by us, which was largely offset by higher

provisioning expenses. Sequential expansion in NIM coupled with persistence of

healthy asset-quality trends were the key positive takeaways from the results. werecommend an Accumulate on the stock.Sequential expansion in NIM coupled with persistence of healthy asset-quality: For2QFY2012, the banks overall business momentum remained moderate, with

advances growing by 2.9% qoq (up 23.9% yoy) and deposits increasing by 5.2%

qoq (22.1% yoy). Global saving account deposits growth was relatively better at

15.5% yoy. However, slower (5.7% yoy) growth in current account deposits led to

a 220bp yoy compression in calculated global CASA ratio to 27.4%. The sharp

91bp qoq expansion in yield on advances vis--vis a 43bp qoq rise in cost of

deposits led to a 28bp qoq expansion in reported domestic NIM to 3.7%.

Fee-based income rose reasonably by 13.2% yoy. Recoveries from written-off

accounts witnessed a robust 76.4% yoy rise to`

122cr during 2QFY2012. On theasset-quality front, the bank continued to surprise positively with annualized

slippage ratio in check at 1.0%. Absolute amount of gross NPAs declined on a

qoq basis, albeit marginally. Gross and net NPA ratios remained largely flat on a

sequential basis at 1.4% and 0.5%, respectively. Provisioning expenses were

considerably higher than expected as the bank chose to maintain its provision

coverage ratio (including technical write-offs) at elevated levels of 82.0%.

Outlook and valuation:The stock is trading at 1.1x FY2013E ABV. Historically, thestock has traded at 0.8x1.3x one-year forward P/ABV multiple, with a five-year

median of 1.0x, but it has been rerated over the past two years to a 1.3x average

on the back of the banks consistent improvement in profitability, underpinned by

fruitful investments in channel modernisation, healthy CASA and balance sheet

growth and declining operating expenses (1.5% of avg. assets in FY2011).Post the recent run-up in the stock after the announcement of the results, we

recommend an Accumulate stance on the stock with a target price of `881.

Key financialsY/E March (` cr) FY2010 FY2011 FY2012E FY2013ENII 5,939 8,802 10,268 11,890% chg 15.9 48.2 16.6 15.8

Net profit 3,058 4,242 4,658 5,527% chg 37.3 38.7 9.8 18.7

NIM (%) 2.4 2.8 2.7 2.6

EPS (`) 83.7 108.0 118.6 140.7P/E (x) 9.5 7.4 6.7 5.7

P/ABV (x) 1.9 1.5 1.3 1.1

RoA (%) 1.2 1.3 1.2 1.2

RoE (%) 21.9 23.5 20.4 20.7

Source: Company, Angel Research

ACCUMULATECMP `799

Target Price `881

Investment Period 12 months

Stock Info

Sector Banking

Market Cap (` cr) 31,270

Beta 0.8

52 Week High / Low 1,050/681

Avg. Daily Volume 65,619

Face Value (`

) 10BSE Sensex 17,481

Nifty 5,258

Reuters Code BOB.BO

Bloomberg Code BOB@IN

Shareholding Pattern (%)

Promoters 57.0

MF / Banks / Indian Fls 16.8

FII / NRIs / OCBs 14.9Indian Public / Others 11.4

Abs. (%) 3m 1yr 3yr

Sensex (4.6) (14.1) (78.6)

Bank of Baroda (9.0) (21.6) 230.4

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Shrinivas Bhutda022 3935 7800 Ext: 6845

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Bank of BarodaPerformance Highlights

2QFY2012 Result Update | Banking

November 1, 2011


2/12

Bank of Baroda | 2QFY2012 Result Update

November 1, 2011 2

Exhibit 1:2QFY2012 performanceParticulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)Interest earned 7,251 6,632 9.3 5,159 40.6- on Advances / Bills 5,482 5,077 8.0 3,838 42.8- on investments 1,546 1,352 14.3 1,157 33.7

- on balance with RBI & others 208 163 27.7 147 41.5

- on others 15 39 (61.8) 17 (11.2)

Interest Expended 4,685 4,335 8.1 3,121 50.1Net Interest Income 2,567 2,297 11.7 2,038 25.9Other income 734 641 14.6 681 7.8Other income excl. treasury 724 567 27.8 571 26.8

- Fee Income 314 275 14.2 248 26.3

- Treasury Income 10 74 (86.3) 110 (90.8)

- Recoveries from written off a/cs 122 29 324.1 69 76.4

- Others 289 263 9.6 254 13.7

Operating income 3,301 2,938 12.4 2,719 21.4Operating expenses 1,161 1,107 4.9 1,063 9.3- Employee expenses 647 645 0.2 656 (1.5)

- Other Opex 515 461 11.5 407 26.6

Pre-provision Profit 2,140 1,831 16.9 1,657 29.2Provisions & Contingencies 496 404 22.8 185 167.6- Provisions for NPAs 298 132 125.9 142 109.6

- Provisions for Standard adv. 47 113 (58.5) 52 (9.8)

- Provisions for Investments 145 139 4.7 (20) -

- Other Provisions 6 21 (69.4) 11 (44.2)

PBT 1,644 1,427 15.2 1,471 11.7Provision for Tax 478 394 21.1 452 5.7PAT 1,166 1,033 12.9 1,019 14.4Effective Tax Rate (%) 29.1 27.6 142bp 30.7 (166)bp


Exhibit 2:2QFY2012 Actual vs. EstimatesParticulars (` cr) Actual Estimates Var. (%)NII 2,567 2,341 9.7

Non-interest income 734 679 8.1

Operating income 3,301 3,020 9.3Operating expenses 1,161 1,148 1.1

Pre-prov. profit 2,140 1,871 14.3Provisions & cont. 496 316 56.8

PBT 1,644 1,555 5.7

Prov. for taxes 478 466 2.4

PAT 1,166 1,088 7.1Source: Company, Angel Research


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November 1, 2011 3

Exhibit 3:2QFY2012 performance analysisParticulars 2QFY12 1QFY12 %chg (qoq) 2QFY11 %chg (yoy)Balance sheetAdvances (`cr) 239,120 232,340 2.9 192,959 23.9Deposits (`cr) 329,185 312,943 5.2 269,660 22.1

Credit-to-Deposit Ratio (%) 72.6 74.2 (160)bp 71.6 108bp

Current deposits (`cr) 21,639 21,567 0.3 20,466 5.7

Saving deposits (`cr) 68,541 65,654 4.4 59,349 15.5

CASA deposits (` cr) 90,180 87,221 3.4 79,815 13.0

Global CASA ratio (%) 27.4 27.9 (48)bp 29.6 (220)bp

Domestic CASA ratio (%) 34.0 33.9 10bp 35.9 (187)bp

CAR (%) 12.7 13.1 (37)bp 13.2 (49)bp

Tier 1 CAR (%) 8.8 9.1 (24)bp 8.2 66bp

Profitability Ratios (%)Cost of deposits 6.8 6.4 43bp 5.3 157bp

Yield on advances 12.1 11.2 91bp 10.2 197bp

Yield on investments 7.7 7.6 13bp 7.2 48bp

Reported NIM 3.7 3.4 28bp 3.6 5bp

Cost-to-income ratio 35.2 37.7 (249)bp 39.1 (390)bp

Asset qualityGross NPAs (` cr) 3,402 3,425 (0.7) 2,720 25.1

Gross NPAs (%) 1.4 1.5 (5)bp 1.4 2bp

Net NPAs (`cr) 1,119 1,024 9.2 731 53.0

Net NPAs (%) 0.5 0.4 3bp 0.4 9bp

PCR incl. tech. w/offs (%) 82.0 82.5 (55)bp 85.6 (359)bp

Annualized slippage ratio (%) 1.0 1.0 (0)bp 0.7 36bp

NPA prov. to avg. assets (%) 0.3 0.1 17bp 0.2 13bp



4/12


November 1, 2011 4

Moderate business growth, aided by overseas business

For 2QFY2012, the banks overall business momentum remained moderate, with

advances growing by 2.9% qoq (up 23.9% yoy) and deposits increasing by 5.2%

qoq (22.1% yoy). The banks business growth was aided by strong growth inoverseas business (primarily due to the depreciation of the INR vis--vis the USD),

with the advances rising by 10.5% qoq and deposits increasing by 10.0% qoq.

Domestic advances growth was muted at 0.2% qoq and deposits accretion was

moderate at 3.5% qoq.

Saving account deposits growth was relatively better at 15.5% yoy. However,

slower (5.7% yoy) growth in current account deposits led to a ~200bp yoy

compression in calculated global CASA ratio to 27.4%. Domestic CASA ratio

improved marginally (10bp qoq) to 34.0%.

Exhibit 4:Business growth moderates


Exhibit 5:Moderation in CASA growth continues


NIM improves on the back of better loan yields

The sharp 91bp qoq expansion in yield on advances vis--vis a 43bp qoq rise in

cost of deposits led to a 28bp qoq expansion in reported domestic NIM to 3.7%.

The overseas NIM improved by 5bp qoq to 1.42% in spite of a 62bp qoq decline

in overseas yield on investments. Reported global NIM improved by 20bp qoq to

3.1%, on the back of a sharp 53bp qoq rise in global yield on advances as

compared to a 25bp qoq rise in cost of deposits.

Exhibit 6:Surge in yield on advances....


Exhibit 7:...leads to 28bp qoq rise in domestic NIM

Source: Company, Angel Research; Note: 4QFY11 adj. NIM at 3.70%

29.6

32.7

30.6

25.2

23.9

30.0

30.9

26.6

22.9

22.1

71.6

73.6

74.974.2

72.6

68.0

70.0

72.0

74.0

76.0

-

7.0

14.0

21.0

28.0

35.0

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)

29.6

29.1

28.7

27.9

27.4

27.3

23.1 22.6

16.6

13.0

-

10.0

20.0

30.0

26.0

27.0

28.0

29.0

30.0


Global CASA ratio CASA yoy growth (%, RHS)

10.1710.34

10.65

11.23

12.14

8.50

9.50

10.50

11.50

12.50


(%)

3.62

3.82

4.16

3.39

3.67

2.75

3.00

3.25

3.50

3.75

4.00

4.25


(%)


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November 1, 2011 5

Fee income growth remains healthy; recoveries witness pick-up

Overall non-interest income growth was muted at 7.8% yoy, primarily due to a

90.8% yoy decline in treasury income. However, core fee income registered

healthy growth of 14.2% qoq and 26.3% yoy to `314cr. Management plans toincrease its fee-based income in-line with the loan book for FY2012. With the

hardening of interest rates, trading income for the bank declined substantially to

just `10cr as compared to `110cr earned in 2QFY2011. Recoveries from

written-off accounts witnessed healthy traction, rising by 76.4% yoy to `122cr.

Exhibit 8:Recoveries gain traction; forex income rises by a healthy 47%Particulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)CEB 314 275 14.2 248 26.3

Treasury 10 74 (86.3) 110 (90.8)

Forex 147 140 5.2 100 47.3

Recoveries 122 29 324.1 69 76.4

Others 141 123 14.5 154 (8.1)

Other income 734 641 14.6 681 7.8Other income excl. treasury 724 567 27.8 571 26.8


Stable asset quality

The bank maintained its healthy track record on the asset quality front, with the

annualized slippages ratio coming in well within manageable limits at 1.0%. The

annualized slippage ratio for 1HFY2012 stands at 1.0% well below managements

guidance for slippages ratio of 1.251.30% for FY2012.The bank had alreadyfully migrated to the system-based NPA recognition platform. While gross NPAs

remained largely stable sequentially, net NPAs rose by 9.2% qoq. However, gross

and net NPA ratios remained amongst the better ones especially among the PSU

peers at 1.4% and 0.5%, respectively. The provision-to-coverage ratio (including

technical write-offs) was maintained at healthy levels of 82.0%. Credit costs for the

quarter rose (to 32bp) from the below normal levels (14bp) witnessed in

1QFY2012.

Exhibit 9:NPA ratios stable


Exhibit 10:Slippages remain in check


The bank restructured advances of `663cr, taking the cumulative outstanding

restructured book to `7,829cr. Cumulative slippages from restructured loans

(accounts above `1cr) stood at `959cr (12.2% of restructured advances).

1.4

1.3

1.4

1.5

1.4

0.4

0.4

0.4

0.4

0.5

85.6 85.5 85.082.5 82.0

50.0

60.0

70.0

80.0

90.0

-

0.4

0.8

1.2

1.6


Gross NPAs (%) Net NPAs (%) PCR (%, RHS)

0.7

0.6

1.5

1.0

1.0

0.2

0.3

0.5

0.1

0.3

-

0.2

0.4

0.6

-

0.4

0.8

1.2

1.6


Slippages (%) Credit cost (%, RHS)


6/12


November 1, 2011 6

Opex under control; branch expansion gains traction

Operating expenses of the bank were well under control during the quarter with

the cost-to-income ratio improving further to 35.2% (amongst the best in the

industry) from 39.1% in 2QFY2011 and opex-to-average assets remaining

sequentially steady at 1.2%.

The branch expansion plans of the bank picked up pace with opening of 83

branches in 2QFY2012 (128 branches added in 1HFY2012), taking its total

number of domestic branches to 3,492. The bank also added 143 ATMs during

the quarter (added 239 ATMs in 1HFY2012), taking its ATM network to 1,800. The

bank plans to open over 550 branches (264 in Tier-1 and Tier-2 centres and 305

in Tier-3 to Tier-6 centres) in FY2012.

Exhibit 11:Branch expansion continues at healthy pace


Exhibit 12:Further improvement in cost ratios


Investment arguments

Credit market share gains with reasonable asset quality

The banks advances growth (28.6% CAGR) outpaced the sectors growth (19.5%

CAGR) during FY200711, leading to credit market share gains of 148bp.

The banks domestic NIM as well as its asset quality have been reasonably healthy

relative to peers, as reflected in the RoE of 21.5% and net NPA of 0.4% (as of

FY2011). The banks RoA has been increasing consistently since FY2007 (0.8% in

FY2007, 1.3% in FY2011); and by increasing its leverage from 16x to 18x

over FY200710, the bank has managed to nearly double its RoE in the

last four years.

Managements focus on channel improvement

Management is focusing on new business, customers and technology initiatives to

further strengthen its operations and leverage its considerable domestic footprint.

The bank offers multiple service channels such as Baroda Connect (Internet

Banking), Phone Banking, Baroda Cash Management Services, NRI Services and

Depository Services. The bank has implemented an Integrated Global Treasury

Solution in its major overseas territories. The bank has also started providingonline institutional trading to its corporate customers. This has aided the bank to

register healthy CASA at a 20.6% CAGR over FY200711 and a decline in

opex-to-average assets from 2.0% in FY2007 to 1.5% in FY2011.

3,2023,259

3,3643,409

3,492

3,000

3,150

3,300

3,450

3,600


39.1

37.6

43.6

37.7

35.2

1.4 1.4

1.8

1.2 1.2

-

0.5

1.0

1.5

2.0

32.0

36.0

40.0

44.0

48.0


Cost-to-income ratio (%) Opex to average assets (%, RHS)


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November 1, 2011 7

Outlook and valuation

The bank has been able to grow its bottom line at a 42.6% CAGR over

FY200711, driven by strong CASA ratio and market share gains in credit and

deposits and opex leverage.

At the CMP, the stock is trading at 1.1x FY2013E ABV. Historically, the stock has

traded at 0.8x1.3x one-year forward P/ABV multiple, with a five-year median of

1.0x, but it has been rerated over the past two years to a 1.3x average on the back

of the banks consistent improvement in profitability, underpinned by fruitful

investments in channel modernisation, healthy CASA and balance sheet growth

and declining operating expenses (1.5% of average assets in FY2011).

Also the banks strong branch network expansion plans, in our view, augur well for

credit as well as CASA market share gains, going forward. The bank plans to add

over 550 branches in FY2012 alone, representing a healthy 16%+ increase in its

branch network. So far, in 1HFY2012 the bank has added 128 branches which is

expected to pick up further going ahead.

We have tweaked our estimates to factor in a better-than-expected NIM trajectory

and higher provisioning expenses considering the slowing economic growth

scenario.

Post the recent run-up in the stock after the announcement of the results, werecommend an Accumulate stance on the stock with a target price of `881,implying an upside of 10.4% from the current levels. Exhibit 13:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2012 FY2013 FY2012 FY2013Credit growth 18.0 18.0 17.0 18.0

Deposit growth 20.0 18.0 20.0 18.0

CASA ratio 28.0 27.4 28.0 27.4

NIMs 2.5 2.4 2.7 2.6

Other income growth 2.9 19.1 3.6 19.1

Growth in staff expenses (8.0) 12.0 (7.0) 14.0

Growth in other expenses 17.0 17.0 24.0 22.0

Slippages 1.1 1.1 1.1 1.1

Treasury gain/(loss) (% of investments) 0.2 0.2 0.1 0.2



8/12


November 1, 2011 8

Exhibit 14:Change in estimatesParticulars (` cr)

FY2012 FY2013Earlierestimates Revisedestimates % chg Earlierestimates Revisedestimates % chg

NII 9,634 10,268 6.6 11,029 11,890 7.8

Non-interest income 2,890 2,911 0.7 3,442 3,466 0.7

Operating income 12,524 13,178 5.2 14,471 15,356 6.1Operating expenses 4,688 4,837 3.2 5,350 5,684 6.2

Pre-prov. profit 7,836 8,342 6.5 9,121 9,672 6.0Provisions & cont. 1,319 1,688 28.0 1,442 1,490 3.3

PBT 6,517 6,654 2.1 7,679 8,182 6.5Prov. for taxes 1,955 1,996 2.1 2,491 2,655 6.5

PAT 4,562 4,658 2.1 5,188 5,527 6.5Source: Company, Angel Research

Exhibit 15:P/ABV band

Source: Company, Angel Research;

0

200

400

600

800

1,000

1,200

1,400

Apr-06

Nov-0

6

Jun-0

7

Jan-0

8

Aug-0

8

Mar-09

Oct-09

May-1

0

Dec-1

0

Jul-11

Feb-1

2

Price (`) 0.5x 0.8x 1.1x 1.4x 1.7x


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November 1, 2011 9

Exhibit 16:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2013EP/ABV (x) FY2013ETgt P/ABV (x) FY2013EP/E (x) FY2011-13EEPS CAGR (%) FY2013ERoA (%) FY2013ERoE (%) AxisBk Buy 1,135 1,41424.5 1.8 2.3 9.9 17.7 1.5 20.0

FedBk Accumulate 415 444 7.0 1.1 1.2 8.5 19.5 1.2 14.0

HDFCBk Neutral 482 - - 3.3 - 16.8 30.5 1.7 20.9

ICICIBk* Buy 895 1,114 24.4 1.6 2.0 13.2 23.3 1.4 15.4

SIB Accumulate 23 24 5.3 1.1 1.2 6.7 15.6 1.0 18.2

YesBk Accumulate 308 347 12.9 1.9 2.2 10.2 19.9 1.3 20.8

AllBk Accumulate 149 16913.0 0.7 0.8 4.2 8.9 0.9 17.7

AndhBk Neutral 121 -- 0.8 - 5.4 (0.9) 0.9 15.8

BOB Accumulate 799 881 10.4 1.1 1.2 5.7 14.2 1.2 20.7BOI Accumulate 337 362 7.5 0.9 1.0 5.6 15.2 0.7 17.1

BOM Accumulate 51 55 9.7 0.7 0.7 4.3 38.1 0.6 16.5

CanBk Neutral 478 - - 0.9 - 5.6 (3.0) 0.9 17.2CentBk Neutral 102 - - 0.7 - 5.0 (14.6) 0.5 14.2

CorpBk Accumulate 430 483 12.3 0.7 0.8 4.4 1.5 0.8 16.6

DenaBk Neutral 81 - - 0.6 - 3.9 5.8 0.8 16.2

IDBI# Neutral 114 - - 0.7 - 5.4 12.3 0.7 14.0

IndBk Neutral 217 - - 0.9 - 5.6 0.2 1.1 17.4

IOB Neutral 100 - - 0.6 - 4.0 20.0 0.6 15.9

J&KBk Neutral 825 - - 0.9 - 5.7 6.7 1.2 16.4

OBC Accumulate 289 314 8.7 0.7 0.7 5.1 5.4 0.8 13.9

PNB Accumulate 1,013 1,085 7.1 1.2 1.3 6.3 7.2 1.0 20.0

SBI* Buy 1,902 2,239 17.7 1.4 1.7 7.3 41.4 1.0 21.9

SynBk Buy 107 123 15.4 0.7 0.8 4.7 11.8 0.7 16.3

UcoBk Neutral 75 - - 0.9 - 4.6 14.0 0.6 16.5

UnionBk Accumulate 222 238 7.5 0.8 0.9 5.1 5.2 0.8 17.0

UtdBk Accumulate 74 82 10.9 0.6 0.7 4.4 11.7 0.6 13.8

VijBk Neutral 60 -- 0.8 - 7.3 (3.2) 0.4 10.5

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF


10/12


November 1, 2011 10

Income statementY/E March (` cr) FY07 FY08 FY09 FY10 FY11 FY12E FY13ENII 3,786 3,912 5,123 5,939 8,802 10,268 11,890- YoY Growth (%) 17.4 3.3 31.0 15.9 48.2 16.6 15.8Other Income 1,390 2,051 2,758 2,806 2,809 2,911 3,466- YoY Growth (%) 16.6 47.6 34.5 1.8 0.1 3.6 19.1

Operating Income 5,176 5,963 7,881 8,746 11,611 13,178 15,356- YoY Growth (%) 17.2 15.2 32.2 11.0 32.8 13.5 16.5

Operating Expenses 2,544 2,934 3,576 3,811 4,630 4,837 5,684- YoY Growth (%) 6.7 15.3 21.9 6.6 21.5 4.5 17.5

Pre - Provision Profit 2,632 3,029 4,305 4,935 6,982 8,342 9,672- YoY Growth (%) 29.5 15.1 42.1 14.6 41.5 19.5 16.0

Prov. & Cont. 982 821 962 697 1,331 1,688 1,490- YoY Growth (%) 7.0 (16.3) 17.1 (27.5) 90.9 26.8 (11.7)

Profit Before Tax 1,650 2,207 3,343 4,238 5,650 6,654 8,182- YoY Growth (%) 48.0 33.8 51.5 26.8 33.3 17.8 23.0

Prov. for Taxation 623 772 1,116 1,180 1,409 1,996 2,655- as a % of PBT 37.8 35.0 33.4 27.8 24.9 30.0 32.4

PAT 1,026 1,436 2,227 3,058 4,242 4,658 5,527- YoY Growth (%) 24.1 39.9 55.1 37.3 38.7 9.8 18.7

Balance sheetY/E March (` cr) FY07 FY08 FY09 FY10 FY11 FY12E FY13EShare Capital 366 366 366 366 393 393 393Reserves & Surplus 8,284 10,678 12,514 14,741 20,600 24,185 28,457

Deposits 124,916 152,034 192,397 241,262 305,439 366,527 432,502

- Growth (%) 33.4 21.7 26.5 25.4 26.6 20.0 18.0

Borrowings 1,143 3,927 5,636 6,160 12,906 15,524 18,297

Tier 2 Capital 2,719 5,423 7,132 7,190 9,402 11,000 12,980

Other Liab & Prov. 5,719 7,172 8,628 8,598 9,657 13,459 15,458

Total Liabilities 143,146 179,599 226,672 278,317 358,397 431,088 508,087Cash balances 6,414 9,370 10,596 13,540 19,868 23,824 28,113

Bank balances 11,867 12,930 13,491 21,927 30,066 36,164 42,623

Investments 34,944 43,870 52,446 61,182 71,261 93,376 109,746

Advances 83,621 106,701 143,251 175,035 228,676 267,551 3

- Growth (%) 39.6 27.6 34.3 22.2 30.6 17.0 18.0

Fixed Assets 1,089 2,427 2,310 2,285 2,300 2,683 3,068

Other Assets 5,213 4,302 4,578 4,347 6,226 7,489 8,827

Total Assets 143,146 179,600 226,672 278,317 358,397 431,088 508,087- Growth (%) 26.2 25.5 26.2 22.8 28.8 20.3 17.9


11/12


November 1, 2011 11

Ratio analysis

Y/E March FY07 FY08 FY09 FY10 FY11 FY12E FY13EProfitability ratios (%)NIMs 3.1 2.5 2.6 2.4 2.8 2.7 2.6Cost to Income Ratio 49.2 49.2 45.4 43.6 39.9 36.7 37.0

RoA 0.8 0.9 1.1 1.2 1.3 1.2 1.2

RoE 12.4 14.6 18.6 21.9 23.5 20.4 20.7

B/S ratios (%)CASA Ratio 33.2 31.2 29.6 29.6 28.7 28.0 27.4

Credit/Deposit Ratio 66.9 70.2 74.5 72.5 74.9 73.0 73.0

CAR 11.8 12.9 13.1 13.4 13.6 14.1 14.0

- Tier I 8.7 7.6 7.9 8.6 9.3 9.6 9.5

Asset Quality (%)Gross NPAs 2.5 1.8 1.3 1.4 1.4 1.8 2.1

Net NPAs 0.6 0.5 0.3 0.3 0.3 0.4 0.6

Slippages 1.3 1.2 0.9 1.2 1.1 1.1 1.1

Loan Loss Prov. /Avg. Assets 0.2 0.3 0.1 0.4 0.3 0.3 0.2

Provision Coverage 76.0 75.0 75.6 86.0 85.0 82.0 78.0

Per Share Data (`)EPS 28.1 39.3 60.9 83.7 108.0 118.6 140.7

ABVPS (75% cover.) 236.6 302.1 352.4 413.3 534.4 625.7 734.5

DPS 6.0 8.0 9.0 15.0 16.5 23.5 27.5

Valuation RatiosPER (x) 28.4 20.3 13.1 9.5 7.4 6.7 5.7

P/ABVPS (x) 3.4 2.6 2.3 1.9 1.5 1.3 1.1

Dividend Yield 0.7 1.0 1.1 1.9 2.1 2.9 3.4

DuPont AnalysisNII 3.0 2.4 2.5 2.4 2.8 2.6 2.5

(-) Prov. Exp. 0.8 0.5 0.5 0.3 0.4 0.4 0.3

Adj. NII 2.2 1.9 2.0 2.1 2.3 2.2 2.2

Treasury 0.1 0.3 0.4 0.3 0.1 0.0 0.0

Int. Sens. Inc. 2.3 2.2 2.5 2.4 2.5 2.2 2.3

Other Inc. 1.0 0.9 0.9 0.8 0.7 0.7 0.7

Op. Inc. 3.3 3.2 3.4 3.2 3.2 2.9 3.0

Opex 2.0 1.8 1.8 1.5 1.5 1.2 1.2PBT 1.3 1.4 1.6 1.7 1.8 1.7 1.7

Taxes 0.5 0.5 0.5 0.5 0.4 0.5 0.6

RoA 0.8 0.9 1.1 1.2 1.3 1.2 1.2Leverage 15.6 16.4 17.0 18.0 17.6 17.3 17.6

RoE 12.4 14.6 18.6 21.9 23.5 20.4 20.7


12/12


November 1 2011 12

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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Disclosure of Interest Statement Bank of Baroda

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

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