Analyst Meet / AGM - Analyst Meet
Expects to further improvement in margins ahead
Bank of Baroda conducted an analyst meet on 30 January 2019 to discuss the financial results for the quarter ended December 2018 and prospects of the bank. PS Jayakumar, MD&CEO of the bank addressed the meet:
Highlights:
* The bank has posted improved margins with higher yield on advances, while the bank expects further improvement in margins, going forward. The margins on overseas loan book of the bank has improved with the focus on local credit business and rising share of high yielding products.
* The fresh slippages of loans stood at Rs 2933 crore, of which Rs 1169 crore related to IL&FS account for that 20% provision has been made above IRAC norms. The bank has overall exposure of Rs 4677 crore to IL&FS group, with Rs 1169 crore relating to parent company.
* The banks watch list of stressed account stand at Rs 8500 crore end December 2018.
* The bank has exposure of Rs 3910 crore of loans under NCLT 1 and Rs 3839 crore under NCLT 2 end December 2018. The bank has made provisions of 73% to its NCLT related exposure.
* The bank has exhibited decline in SMA-2 category loan book, while the SMA-1 category loan book has witnessed marginal increase in Q3FY2019.
* The Tier I capital adequacy ratio of the bank has declined to 9.86% from 10.25% on sequential basis due to transfer of Rs 1345 crore to banks UK subsidiary.
* The bank expects further decline in net NPA ratio in Q4FY2019.
* The bank is looking at strong opportunities related to cross sell with respect to managing risk, moving ahead.
* With regards to network expansion, the bank expects the branch expansion to normalize with amalgamation process underway.
* The bank has exhibited increase in operating expenses on account of higher depreciation and provisions for employee pension benefit.
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