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Analyst Meet / AGM - Analyst Meet

Proposes to touch network of 5000 branches and 6000 ATM in FY2014

Bank of Baroda

14-May-2013, 07:11
Bank of Baroda conducted the analyst meet on 13 May 2013 to discuss the financial performance of the bank for the quarter ended March 2013 and the prospects of the bank. S.S. Mundra, CMD and along with other colleagues addressed the meet:
Highlights:

Bank has crossed Rs 8 trillion business mark in FY2013, while bank targeted the business growth of 1.5-2.0% above banking industry growth for FY 2014.
Bank has touched the 50 million global customer base at end March 2013.
Net additions to NPA were mainly contributed by international operations in the quarter ended March 2013. About 13-14 accounts in the international operations contributed Rs 880 crore increase in GNPA in the quarter ended March 2013.
As per the bank, large slippages in the international operations in Quarter ended March 2013 were one-off in the nature and would improve in future. Bank also expects the domestic slippages would be stable for next two quarters and expects continuous improvement in asset quality further.
Bank has upgraded about Rs 3051 crore of restructured advances in line with RBI guidelines allowing the upgrdation of restructured advances on satisfactory performance for two years.
As per the bank, infrastructure advance book would contribute to further restructuring of advance, mainly on technical reasons.
Bank proposes to improve the PCR to 80%, once the economic scenario improves.
Bank expects to maintain the domestic NIM above 3% in FY2014
As per the bank, its deposits and advances growth would be 150-200 bps above industry growth to maintain the market share, while bank proposes to further broad base advance book to be spread over various sectors.
Retail, SME, and agriculture would grow faster in FY2014 than corporate book. Bank has made enabling structural changes driving the growth.
Bank proposes to add around 600 new branches in FY2014 to touch the network of 5000 branches by end March 2014.
Bank would touch the ATM network of 6000 by end March 2014, while would also add more 24X7 working self-serving branches in FY2014.
Bank has provided Rs 25 crore per month for wage revision at the rate of 14-15% for five months ended March 2013.
Bank expects the effective tax rate of 18% for FY2014.