BANK OF BARODA Q2 Results 2008

Total Income was up by 20.79% (YoY) at Rs. 4,026.90 crore in Q2, FY09. Its Operating Profit for Q2, FY09 at Rs 845.63 crore was also up 32.7%. Its Net Profit for Q2, FY09 was up 20.81% at Rs 395.29crore.

The growth in Net Profit was slightly muted due to the “provisions” made on account of expected wage revisions and against the writedowns in investments consequent to recent global financial turmoil.

The Bank was able to achieve the Net Interest Margin (NIM) [as per cent of interest-earning assets] of 2.92% in its domestic operations and 2.77% in its global operations.

A look at the first half figures indicates how the company is handling the global financial turmoil. Provisions and contingencies (excluding tax provisions) for the Bank have sharply increased by 118.1% to Rs 522.22 crore in H1, FY09 due to higher provisions on overseas’ investment book necessitated by the global financial turmoil and additional provisions on account of expected wage revisions. Global deposits have increased by 22.6% to Rs.1,61,069 crore at end-September, 2008 from Rs 1,31,373 crore at end-September 2007, global advances have increased by 32.44% to Rs 1,19,475 crore at end-September, 2008 from Rs 90,212 crore at end-September, 2007.

Gross NPAs of the Bank have come down to Rs 1,954.39 crore as on September 30, 2008, reflecting a reduction of 8.21%. As a “Per cent to Total Advances”, the Net NPAs too have declined from 0.55% in September 2007 to 0.43% in September 2008.

The Bank’s Capital Adequacy Ratio is at 12.86% (as per Basel I) as of September 30, 2008 despite a growth of 32.5% in the Bank’s loan book. Whereas the Bank had raised the Upper Tier II capital worth Rs.2,703 crore in 2007-08, it has not so far raised any capital during the current financial year.

The Bank is present in 25 countries through its 72 branches/offices, including branches of its seven subsidiaries. The Bank also has a Joint Venture in Zambia, which has 11 branches. During FY09, the Bank proposes to open 10 new overseas branches/offices.
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