This document provides an overview of Bank of Baroda, including its business segments, financial performance, and risk management approaches. It summarizes that Bank of Baroda is the 3rd largest public sector bank in India with over 3000 branches and total assets exceeding Rs. 2.27 lakh crore. It offers a wide range of banking products and follows the standardized approach for credit risk, basic indicator approach for operational risk, and duration-based approach for market risk under Basel 2 regulations. The document also compares Bank of Baroda's asset-liability management and risk-weighted assets to other major banks in India.

2.  Industry Overview
 Company Over view
 SWOT Analysis
 Financial Analysis
 Basel 2 and Implications
 ALM Implementation and Comparison
 Valuation

3.  Sustainable growth momentum
 Under penetration of financial products
 Retail credit on the rise
Agri credit
12%
Industries
41%
Others
17%
Retail
22%
Real Estate
4%
NBFC's
4%
Loans

4. Taiwan
Korea
Malaysia
Phillipines
Thailand
Singapore
HK
Indonesia
China
India
Loan CAGR 2003 - 2008
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Loan CAGR

5. 0% 50% 100% 150% 200% 250%
Indonesia
Phillipines
India
Thailand
Korea
Malaysia
China
Singapore
Taiwan
HK
Credit/GDP Ratio
Credit/GDP

6. 0% 10% 20% 30% 40% 50%
Canara
BOI
PNB
Union
Sector
SBI
Corp Bank
ICICI
OBC
BOB
HDFC
Credit CAGR, FY 04-09
Credit CAGR

7. 0% 10% 20% 30% 40% 50% 60%
Others
Agri Credit
Industries
Non Food Credit
Retail
Bank-credit CAGR, FY 04-09
Bank-credit CAGR

8.  Target market expanding
 New players a threat to banks (Insurance
companies, Mutual Fund etc)
29.1
31.2
23.9
26.1
20.6
21.4
17.7
14.4
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
Germany
UK
US
China
Thailand
Brazil
Indonesia
India
Percentage Population below 15

9. 0 0.5 1 1.5 2
Old Private Banks
PSU Banks
Sector
New Private Banks
Deposit per branch (Rsbn)
Deposit per branch

10. 0 0.2 0.4 0.6
Old Private Banks
PSU Banks
Sector
New Private Banks
CASA deposit per branch (Rsbn)
CASA deposit per branch

11. 0 0.1 0.2 0.3 0.4 0.5 0.6
Old Private Banks
PSU Banks
Sector
New Private Banks
Advances per branch (Rsbn)
Advances per branch

12. Old Private Banks
PSU Banks
Sector
New Private Banks
Fee generation as a share of assets
0.00% 0.50% 1.00% 1.50%
Fee generation as a share
of assets

13.  GDP dip to reduce Deposit growth
 Rising competition
 Lower Long term resources
>5 years
15%
Up to 1 year
48%
3-5 years
1-3 years
29%
8%
Maturity of Deposits

14.  Traditional lending to be commoditised
 Basel II Norms
 Banks service to be a differentiator

15.  Superior soft skills
 Higher Fees
 Technological gap reducing
 Innovative products
 Better non-branch distribution model

16.  Globalization
 Need for a single system
 From 8 systems to Finacle – One solution,
One stategy
 Time, Cost & Risk minimization
 MIS Reporting
 Cross country product introduction
 Direct India Remittance

17.  Founded in 1908, Bank of Baroda is the 3rd
largest public sector bank in India
 Holds total assets in excess of Rs 2.27 lakh cr
 Network of over 3000 branches and offices
 Offers a wide range of banking products and
financial services
 Government holds approximately 54% stake
 7 International subsidiaries

18. PERSONAL
• Deposits
• Retail Loans
• Credit cards
• Debit Cards
• Services
BUSINESS/
CORPORATES
• Deposits
• Loans and Advances
• Services
• Lockers
• Wholesale Banking
INTERNATIONAL
• NRI services
• ECB
• FCNR(B) Loans
• Offshore Banking
• Export Finance
• Import Finance
• Trade Finance
• International Treasury
TREASURY
• Domestic Operations
• ForexOperations

21. PERSONAL
• Deposits
• Retail Loans
• Credit cards
• Debit Cards
• Services
BUSINESS/
CORPORATES
• Deposits
• Loans and Advances
• Services
• Lockers
• Wholesale Banking
INTERNATIONAL
• NRI services
• ECB
• FCNR(B) Loans
• Offshore Banking
• Export Finance
• Import Finance
• Trade Finance
• International Treasury
TREASURY
• Domestic Operations
• ForexOperations

22. • Wholesale
Banking
• SME Banking
• Retail Banking
• Rural/Agri Banking
• Wealth
Management
• Demat
• Product Enquiry
• Deposit Products
• Loan Products
• ATM/ Debit cards
• Internet Banking
• NRI remittances
• Baroda e-trading
• Interest Rates

23. 25%
29%
30%
16%
Revene Earnings 2008-09
Treasury Operations
Corporate/Wholesale Banking
Retail Banking
Banking Operations
26%
30%
28%
16%
Revenue Earnings 2007-08
Treasury Operations
Corporate/Wholesale Banking
Retail Banking
Banking Operations

24. 18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Geographic Revenue
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Domestic
International

25. Financial Analysis

26. 60.93
32.13
EPS
57.26
155.74
57.23
180
160
140
120
100
80
60
40
20
0
BOB ICICI BOI SBI HDFC
EPS
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Net Interest Margin
BOB ICICI BOI SBI HDFC

27. 6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Tier 2 Risk based Capital Ratio
BOB ICICI BOI SBI HDFC
16.00%
15.50%
15.00%
14.50%
14.00%
13.50%
13.00%
12.50%
12.00%
11.50%
Capital Adequcay Ratio (CAR)
BOB ICICI BOI SBI HDFC

28. 14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Tier 1 Risk based Capital Ratio
BOB ICICI BOI SBI HDFC

29. 8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Cost of Deposits
BOB ICICI BOI SBI HDFC
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Yield on Advances
BOB ICICI BOI SBI HDFC
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Cost Income Ratio
BOB ICICI BOI SBI HDFC

30. 25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Return on Net Worth (ROE)
BOB ICICI BOI SBI HDFC
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
Return on Assets
BOB ICICI BOI SBI HDFC
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
Return on Average Assets
BOB ICICI BOI SBI HDFC

31. 40000
39500
39000
38500
38000
37500
37000
36500
36000
35500
35000
Number of Employees
2005 2006 2007 2008 2009
3000
2950
2900
2850
2800
2750
2700
2650
2600
Number of Branches
2005 2006 2007 2008 2009
10
8
6
4
2
0
Business per employee (Rs. in crore)
2005 2006 2007 2008 2009

32. 14
12
10
8
6
4
2
0
Gross Profit per employee (Rs.
in lakhs)
2005 2006 2007 2008 2009
7
6
5
4
3
2
1
0
Net Profit per employee (Rs. in
lakhs)
2005 2006 2007 2008 2009
120
100
80
60
40
20
0
Business per branch (Rs. in cr)
2005 2006 2007 2008 2009
2
1.5
1
0.5
0
Gross Profit per branch (Rs. in
crore)
2005 2006 2007 2008 2009

33. 0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
Net Profit per branch (Rs. in crore)
2005 2006 2007 2008 2009
350
300
250
200
150
100
50
0
2005 2006 2007 2008 2009
Earnings per share (Rupees)
Book Value per share (Rupees)

34.  Gross NPA to gross advances – 1.27%
 Net NPA to net advances – 0.31%
 Net NPA of 451.15 crores
 One of the lowest gross NPA levels in the
industry.
• HDFC – 2%
• ICICI Bank – 4.4%
• SBI -2.8%
• BOI – 1.7%

35. 90
80
70
60
50
40
30
20
10
0
2007 2008 2009
Non Interest Income/ Total Income
Net Interest Income/ Total Income

37.  Well diversified branch distribution
 Strong concentration in the western region
makes sure that it is CASA rich
 Better focus on international market
 Improvement on the ROE margins in the last
fiscal year
 Strong asset quality with healthy coverage
ratio

38.  Inadequate talent pool to compete with
strong private banks
 Not very strong on technology front
 Lesser expansion of branches in past few
years.
 Lesser strategic initiatives as compared to
larger private banks
 Late on introducing latest products in the
market

39.  Cost to Income could improve in coming
years
 Scope to improve non interest income
 Focus more aggressively on retail banking

40.  Contribution from the foreign business of the
bank is around 25% on the bottom line
 NPA levels could rise as there is over reliance
on corporate and SME’s.
 Continued slow down in the economy could
slow down credit growth

41. BASEL -2 Approaches and
Comparison

42.  Bank of Baroda follows following approaches
for Basel 2 pillar 1
• Credit risk – Standardised Approach
• Operational risk – Basic Indicator Approach
• Market risk – Duration based Approach
 SBI, ICICI and HDFC Bank follow the same
approaches

45.  We were not able to find out risk weighted
assets due to market risk as there is no data
available regarding exact investments.
 From Annual report – 8951.35 crores

50.  ICICI Bank has the highest risk weighted
assets for market risk as compared to other
banks.
 Private banks have higher risk weights for
interest rate risk as compared to PSU banks.
 PSU banks have higher risk weights for equity
risk as compared to private banks

51. Asset and Liability
Management Implementation
and Comparison

57.  On the foreign exchange front BOB and SBI
have done better than HDFC.
 HDFC has the best ALM followed by SBI and
ICICI. BOB needs to improve on ALM.
 BOB needs to improve on reporting for Basel
2 disclosures of ALM