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Analyst Meet / AGM - Analyst Meet

Proposes to focus on profitable business growth

Bank of Baroda

28-Jul-2014, 08:31
Bank of Baroda conducted an analyst meet on 28 July 2014 to discuss the financial results for the quarter ended June 2014 and prospects of the bank. S.S. Mundra CMD of the bank addressed the meet:
Highlights:

Bank proposes to focus on profitable business growth, with proper co-ordination between deposits and advances growth.
On asset quality front, bank witnessed stability and improvement, while expects upgradation cycle to kick in supporting asset quality.
Bank continues not to sale any bad loans to Asset Reconstruction Companies (ACRs).
Bank has utilized gains from the reversal of mark-to-market provisions related to investments for improving the provision coverage ratio (PCR).
Bank has consistently improved PCR from 61.68% at end September 2013 to 62.22% at end December 2013, 65.45% at end March 2014 and further up to 66.68% at end June 2014.
Bank expects capital raising requirement at Rs 6000 crore for FY2015. It expects to meet about Rs 5000 crore of capital requirement from various Tier I and Tier II instruments. Meanwhile, the core equity and retained earnings are expected to contribute about Rs 1000 crore to the capital raising.
During Q1FY2015, the Bank did not raise any high-cost preferential rate deposits in its domestic operations.
During FY2015, the Bank proposes to open 400 new branches under its Branch Expansion Plan.
Standard restructured loans in overseas operations stood at Rs 3053 crore at end June 2014. The Bank restructured three accounts in its overseas operations in Q1FY2015 worth Rs 37.84 crore.
Domestic restructuring was Rs 948 crore (3758 accounts) in Q1FY2015 versus Rs 1157 crore (6556 accounts) in Q4F20Y14.
Globally, Restructured Standard Advances (at Rs 22832 crore) stood at 6.06% of Total Standard Advances
Globally, restructured assets worth Rs 489 crore slipped to NPA during Q1FY2015 and Rs 6002 crore cumulatively so far.
Bank aspires to grow with cautious optimism and would concentrate on improving its domestic NIM to 3.0% through further rebalancing of loan-book; bringing the ROAA close to 1.0% by further improving the CASA share and improving the yield on advances on the back of likely industrial recovery.
On the qualitative side, the bank's endeavours at business process re-engineering, capacity building, technology up-gradation, talent management & training, marketing, etc. would continue with full vigour.
The Bank is continuously evolving its Strategic Focus to cope with changing circumstances.
In the year FY14, the bank succeeded in giving retail orientation to its business; further strengthening its liability franchise and bringing down incremental slippages & restructuring pains.
In Q1FY2015, the bank implemented a Course Correction to stay in tune with economic reality.
Bank will continue embracing transformation to increase Core Competence and achieve Sustainable Growth across all business segments by continuously adapting its business model to suit the economic environment.
Its committed to protecting its Strong Brand Value in the Indian Banking space.
Bank expects tax rate at 18-20% for FY2015.