1QFY2012 Result Update | Banking

July 28, 2011

Bank of Baroda
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT

Source: Company, Angel Research

BUY
CMP Target Price
% chg (qoq) (12.1) (5.9) (20.2) 1QFY11 1,858 1,528 859 % chg (yoy) 23.6 19.9 20.2

`870 `1,018 12 months

1QFY12 2,297 1,831 1,033

1QFY12 2,614 1,946 1,294

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Banking 34,068 0.8 1,050/715 71,767 10 18,210 5,488 BOB.BO BOB@IN

For 1QFY2012, Bank of Baroda reported a decent set of results, with net profit growth of 20.2% yoy to `1,033cr, above our estimates of `1,001cr primarily due to lower-than-estimated provisioning expenses. Healthy traction in core fee income coupled with reduction in annualised slippage ratio for the quarter to 1.0% was the key highlight of the results. We maintain our Buy view on the stock. NIM decline in-line with expectations; slippages come off 4QFY2011 levels: For 1QFY2012, the banks overall business momentum moderated in-line with peers. However, business growth remained ahead of the industry, with advances growing by 25.2% yoy (up 1.6% qoq) and deposits increasing by 22.9% yoy (2.5% qoq). With the widening differential between FD and savings account interest rates, CASA deposit growth moderated further to 16.6% yoy. While global CASA ratio came off by 81bp qoq to 27.9%, domestic CASA ratio declined by 45bp qoq to 33.9%. After adjusting for interest on income tax refund received in 4QFY2011, reported domestic NIM declined by ~30bp qoq to 3.4% due to a sharp 78bp qoq rise in cost of funds as compared to a 58bp rise in yield on advances. Core fee income increased by an impressive 36.3% yoy to `275cr in 1QFY2012. Asset quality of the bank was largely stable during the quarter, with the annualised slippage ratio declining to 1.0% from 1.5% each in 4QFY2011 and 1QFY2011. The bank has already completed migration to system-based NPA recognition. Net NPAs, however, rose by rather steep 29.5% qoq. Outlook and valuation: The stock is trading at 1.2x FY2013E ABV. Historically, the stock has traded at 0.8x1.3x one-year forward P/ABV multiple, with a five-year median of 1.0x, but it has been rerated over the past two years to a 1.3x average on the back of the banks consistent improvement in profitability, underpinned by fruitful investments in channel modernisation, healthy CASA and balance sheet growth and declining operating expenses (1.5% of avg. assets in FY2011). We maintain our Buy recommendation on the stock with a target price of `1,018. Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 57.0 16.3 16.6 10.1

Abs. (%) Sensex Bank of Baroda

3m (6.4) (12.1)

1yr 1.4 21.5

3yr 27.6 244.9

FY2010 5,939 15.9 3,058 37.3 2.4 83.7 10.4 2.1 1.2 21.9

FY2011 8,802 48.2 4,242 38.7 2.8 108.0 8.1 1.6 1.3 23.5

FY2012E 9,736 10.6 4,610 8.7 2.5 117.4 7.4 1.4 1.2 20.2

FY2013E 11,105 14.1 5,205 12.9 2.5 132.5 6.6 1.2 1.1 19.6

Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com

Shrinivas Bhutda
022 3935 7800 Ext: 6845 shrinivas.bhutda@angelbroking.com

Varun Varma
022 3935 7800 Ext: 6847 varun.varma@angelbroking.com

Please refer to important disclosures at the end of this report

Bank of Baroda | 1QFY2012 Result Update

Exhibit 1: 1QFY2012 performance

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Recoveries from written off a/cs - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Standard adv. - Provisions for Investments - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

1QFY12 4QFY11 % chg (qoq) 1QFY11 % chg (yoy) 6,632 5,077 1,352 163 39 4,335 2,297 641 567 275 74 29 263 2,938 1,107 645 461 1,831 404 132 113 139 21 1,427 394 1,033 27.6 6,334 4,587 1,318 134 295 3,720 2,614 834 714 326 121 86 301 3,448 1,503 990 513 1,946 590 424 106 35 25 1,355 61 1,294 4.5 4.7 10.7 2.6 21.8 (86.7) 16.5 (12.1) (23.2) (20.6) (15.8) (38.8) (66.5) (12.7) (14.8) (26.3) (34.8) (10.0) (5.9) (31.6) (68.9) 6.4 300.6 (18.6) 5.3 546.0 (20.2) 2,313bp 4,727 3,566 1,022 127 11 2,869 1,858 617 489 202 128 56 232 2,475 947 577 371 1,528 251 278 29 (59) 4 1,276 417 859 32.7 40.3 42.4 32.3 27.9 243.2 51.1 23.6 3.8 15.9 36.3 (42.1) (48.7) 13.7 18.7 16.8 11.9 24.5 19.9 60.8 (52.5) 292.2 (335.2) 424.7 11.8 (5.5) 20.2 (507)bp

Exhibit 2: 1QFY2012 Actual vs. Estimates

Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Company, Angel Research

Actual 2,297 641 2,938 1,107 1,831 404 1,427 394 1,033

Estimates 2,411 678 3,088 1,126 1,962 532 1,430 429 1,001

Var. (%) (4.7) (5.4) (4.9) (1.7) (6.7) (24.1) (0.2) (8.1) 3.2

July 28, 2011

Bank of Baroda | 1QFY2012 Result Update

Exhibit 3: 1QFY2012 performance analysis

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) Global CASA ratio (%) Domestic CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) PCR incl. tech. w/offs (%) Slippage ratio (%) NPA to avg. assets (%) 3,425 1.5 1,024 0.4 82.5 1.0 0.1 3,153 1.4 791 0.4 85.0 1.5 0.5 8.7 10bp 29.5 9bp (248)bp (50)bp (35)bp 2,657 1.4 717 0.4 85.7 1.5 0.4 28.9 5bp 42.8 5bp (313)bp (50)bp (24)bp 6.4 11.2 7.6 3.4 37.7 5.6 10.7 7.6 4.2* 43.6 78bp 58bp (1)bp (77)bp (590)bp 5.1 9.8 6.8 3.4 38.3 132bp 144bp 76bp (4)bp (60)bp 232,340 312,943 74.2 21,567 65,654 87,221 27.9 33.9 13.1 9.1 228,676 305,439 74.9 23,135 64,454 87,589 28.7 34.4 14.5 10.0 1.6 2.5 (62)bp (6.8) 1.9 (0.4) (81)bp (45)bp (142)bp (93)bp 185,595 254,668 72.9 18,723 56,061 74,784 29.4 35.2 13.3 8.2 25.2 22.9 137bp 15.2 17.1 16.6 (149)bp (132)bp (15)bp 90bp 1QFY12 4QFY11 %chg (qoq) 1QFY11 %chg (yoy)

Source: Company, Angel Research; Note * 3.7% after adjusting for interest on income tax refund

July 28, 2011

Bank of Baroda | 1QFY2012 Result Update

Strong business growth, both domestic and overseas

For 1QFY2012, the banks overall business momentum moderated in-line with peers. However, business growth remained ahead of industry with advances growing 25.2% yoy (up 1.6% qoq) and deposits increasing by 22.9% yoy (2.5% qoq). The banks global net advances growth was driven by 30.6% yoy growth in overseas advances and 24.2% yoy growth in domestic advances. Overseas deposits grew by healthy 27.7% yoy, while domestic deposits grew by 20.6% yoy. With the widening differential between FD and savings account interest rates, CASA deposit growth moderated further to 16.6% yoy from 22.6% yoy in 4QFY2011. Average CASA deposits growth for the quarter was relatively better at ~18% yoy. Global CASA ratio came off by ~80bp qoq to 27.9%. Domestic CASA ratio also declined by 45bp qoq to 33.9%. Bulk deposits constituted 2022% of total deposits.

Exhibit 4: Business growth at above-industry levels

Adv. yoy chg (%) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12
Source: Company, Angel Research

Exhibit 5: Moderation in CASA growth continues

30.0 Global CASA ratio 27.9 27.3 23.1 29.0 CASA yoy growth (%, RHS) 30.0 22.6 16.6 20.0

Dep. yoy chg (%) 74.9

CDR (%, RHS) 74.2 76.0 74.0 72.0

72.9 71.6

73.6

30.7 28.2

29.6 30.0

32.7 30.9

30.6 26.6

25.2 22.9

29.4

29.6

29.1

28.7

27.9

70.0 68.0

28.0

10.0

27.0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

NIM declines in-line with expectations

After adjusting for interest on income tax refund received in 4QFY2011, the banks reported domestic NIM declined by ~30bp qoq to 3.4% due to a sharp 78bp qoq rise in cost of funds as compared to a 58bp rise in yield on advances. Reported overseas NIM improved by 10bp yoy and was stable sequentially at 1.4%. Reported global NIM stood at 2.9%.

Exhibit 6: Rising domestic cost of deposits...

(%) 7.00 6.41 6.00 5.09 5.00 5.27 5.27 5.63

Exhibit 7: ...leads to 30bp qoq dip in adj. domestic NIM

(%) 4.25 4.00 3.75 3.50 3.25 3.00 3.43 3.62 3.39 3.82 4.16

4.00 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

2.75 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

Source: Company, Angel Research; Note: 4QFY11 adj. NIM at 3.70%

July 28, 2011

Bank of Baroda | 1QFY2012 Result Update

Fee income gains traction

Overall non-interest income growth was muted at 3.8% yoy. However, core fee income registered healthy growth of 36.3% yoy to `275cr. Management plans to increase its fee-based income in-line with the loan book for FY2012. With the hardening of interest rates, trading income for the bank declined by 42.1% yoy to `74cr. In-line with the managements guidance in 4QFY2011, recoveries from written-off accounts dipped by 48.7% yoy to `29cr as most of the recoveries were already witnessed in 4QFY2011.

Exhibit 8: Break-up of non-interest income

Particulars (` cr) CEB Treasury Forex Recoveries Others Other income Other income excl. treasury
Source: Company, Angel Research

1QFY12 4QFY11 275 74 140 29 123 641 567 326 121 146 86 155 835 714

% chg (qoq) 1QFY11 (15.8) (38.8) (4.1) (66.5) (20.7) (23.2) (20.6) 202 128 122 56 110 617 489

% chg (yoy) 36.3 (42.1) 15.1 (48.7) 12.1 3.8 15.9

Lower slippages
Asset quality concerns receded a bit from the levels witnessed in 4QFY2011, with the annualised slippage ratio falling to 1.0% from 1.5% each in 4QFY2011 and 1QFY2011. Management has indicated that NPA recognition was fully system-driven. Management has guided for slippages ratio at the most at 1.251.30% for FY2012. While gross NPAs increased by relatively lower 8.7% qoq, net NPAs rose sharply by 29.5% qoq. The provision-to-coverage ratio (including technical write-offs) declined by ~250bp qoq but still remains at comfortable 82.5%. Credit costs for the quarter were below normal levels, in our view, at just 14bp as compared to 50bp in 4QFY2011 and 39bp in 1QFY2011.

Exhibit 9: NPA ratios stable

Gross NPAs (%) 1.6 1.2 0.8 0.4 85.7 85.6 Net NPAs (%) 85.5 85.0 82.5 85.0 80.0 75.0 PCR (%, RHS) 90.0

Exhibit 10: Slippages dip to normal levels

Slippages (%) 1.6 1.2 0.8 0.4 0.4 0.3 0.2 0.1 0.2 Credit cost (%, RHS) 0.5 0.6

0.4

1.4 0.4

1.4 0.4

1.3 0.4

1.4 0.4

1.5 0.4

1.5

0.7

0.6

1.5

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

1.0

70.0

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

The bank restructured advances of `455cr, taking the cumulative restructured book to `7,166cr. Cumulative slippages from restructured loans (accounts above `1cr) stood at `898cr (12.5% of restructured advances).
July 28, 2011

Bank of Baroda | 1QFY2012 Result Update

The share of unsecured advances in the banks loan book has been coming off in the recent quarters, their share stood at 19.3% as of 1QFY2012 as compared to 23.8% in 1QFY2011. The banks exposure to the power sector stands at a relatively lower 67% of total advances with exposure to State Electricity Boards (SEBs) at ~`6,000cr (~2.6% of total advances).

Opex under control

Operating expenses of the bank were well under control during the quarter with the cost-to-income ratio improving to 37.7% (amongst the best in the industry) from 38.3% in 1QFY2011 and opex-to-average assets declining to 1.2% from 1.3% in 1QFY2011. The branch expansion plans of the bank continued at a steady pace with opening of 41 branches in 1QFY2012, taking its total number of domestic branches to 3,409. The bank also added 96 ATMs during the quarter, taking its ATM network to 1,657. The bank plans to open over 500 branches in FY2012 and aims to grow its advances and deposits by 200300bp higher than the systems growth for advances and deposits, respectively.

Exhibit 11: Steady branch expansion continues

3,500 3,400 3,300 3,200 3,100 3,106 3,259 3,202 3,364 3,409

Exhibit 12: Higher opex-to-average assets

Cost-to-income ratio (%) 48.0 44.0 40.0 1.3 1.4 1.4 Opex to average assets (%, RHS) 1.8 1.2 2.0 1.5 1.0

38.3

39.1

37.6

43.6

3,000 2,900 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

32.0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

37.7

36.0

0.5 -

Source: Company, Angel Research

July 28, 2011

Bank of Baroda | 1QFY2012 Result Update

Investment arguments
Credit market share gains with reasonable asset quality
The banks advances growth (28.6% CAGR) outpaced the sectors growth (19.5% CAGR) during FY200711, leading to credit market share gains of 148bp. The banks domestic NIM as well as its asset quality have been reasonably healthy relative to peers, as reflected in the RoE of 21.5% and net NPA of 0.4% (as of FY2011). The banks RoA has been increasing consistently since FY2007 (0.8% in FY2007, 1.3% in FY2011); and by increasing its leverage from 16x to 18x over FY200710, the bank has managed to nearly double its RoE in the last four years.

Managements focus on channel improvement

Management is focusing on new business, customers and technology initiatives to further strengthen its operations and leverage its considerable domestic footprint. The bank offers multiple service channels such as Baroda Connect (Internet Banking), Phone Banking, Baroda Cash Management Services, NRI Services and Depository Services. The bank has implemented an Integrated Global Treasury Solution in its major overseas territories. The bank has also started providing online institutional trading to its corporate customers. This has aided the bank to register healthy CASA at a 20.6% CAGR over FY200711 and a decline in opex-to-average assets from 2.0% in FY2007 to 1.5% in FY2011.

Outlook and valuation

The bank has been able to grow its bottom line at a 42.6% CAGR over FY200711, driven by strong CASA ratio and market share gains in credit and deposits and opex leverage. At the CMP, the stock is trading at 1.2x FY2013E ABV. Historically, the stock has traded at 0.8x1.3x one-year forward P/ABV multiple, with a five-year median of 1.0x, but it has been rerated over the past two years to a 1.3x average on the back of the banks consistent improvement in profitability, underpinned by fruitful investments in channel modernisation, healthy CASA and balance sheet growth and declining operating expenses (1.5% of average assets in FY2011). We have assigned a target FY2013E P/ABV multiple of 1.4x, implying an upside of 17.0%. We maintain our Buy view on the stock with a target price of `1,018.

July 28, 2011

Bank of Baroda | 1QFY2012 Result Update

Exhibit 13: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Treasury gain/(loss) (% of investments)
Source: Company, Angel Research

Earlier estimates FY2012 19.0 19.0 28.2 2.6 4.9 (5.0) 18.0 1.1 0.2 FY2013 17.0 17.0 27.9 2.5 17.1 12.0 16.0 1.1 0.2

Revised estimates FY2012 19.0 19.0 28.2 2.5 3.4 (7.0) 18.0 1.1 0.2 FY2013 17.0 17.0 27.9 2.5 17.9 12.0 16.0 1.1 0.2

Exhibit 14: Change in estimates

FY2012 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT Earlier estimates 9,856 2,947 12,803 4,792 8,010 1,438 6,572 1,972 4,601 Revised estimates 9,736 2,905 12,641 4,734 7,907 1,321 6,586 1,976 4,610 % chg (1.2) (1.4) (1.3) (1.2) (1.3) (8.1) 0.2 0.2 0.2 Earlier estimates 11,154 3,451 14,605 5,448 9,157 1,485 7,671 2,489 5,182 FY2013 Revised estimates 11,105 3,425 14,529 5,383 9,146 1,441 7,705 2,500 5,205 % chg (0.4) (0.8) (0.5) (1.2) (0.1) (3.0) 0.4 0.4 0.4

Source: Company, Angel Research

Exhibit 15: P/ABV band

Price (`) 1,400 1,200 1,000 800 600 400 200 0 0.5x 0.8x 1.1x 1.4x 1.7x

Oct-09

Nov-06

May-10

Dec-10

Aug-08

Source: Company, Angel Research;

July 28, 2011

Mar-09

Feb-12

Jun-07

Jan-08

Apr-06

Jul-11

Bank of Baroda | 1QFY2012 Result Update

Exhibit 16: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Accumulate Accumulate Buy Accumulate Accumulate Neutral Accumulate Buy Accumulate Accumulate Neutral Buy Buy Neutral Accumulate Accumulate Neutral Accumulate Accumulate Buy Buy Neutral Accumulate Accumulate Neutral CMP (`) 1,298 433 488 1,018 24 310 202 137 870 398 478 118 515 81 130 227 136 880 353 1,103 2,356 117 85 290 94 64 Tgt. price (`) 1,648 483 519 1,355 26 353 145 1,018 434 516 608 96 255 155 392 1,217 2,845 139 327 107 Upside (%) 27.0 11.8 6.5 33.2 11.2 13.6 5.7 17.0 9.0 7.9 18.1 19.3 12.3 14.0 11.0 10.4 20.7 18.9 12.9 13.8 FY2013E P/ABV (x) 2.1 1.2 3.3 1.9 1.2 2.0 1.0 0.9 1.2 1.1 0.9 0.8 0.8 0.6 0.8 0.9 0.8 0.9 0.8 1.3 1.8 0.8 1.0 1.1 0.8 0.8 FY2013E Tgt P/ABV (x) 2.7 1.3 3.5 2.5 1.4 2.3 1.0 1.4 1.2 1.0 1.0 0.7 1.0 1.0 0.9 1.4 2.1 0.9 1.2 0.9 FY2013E P/E (x) 10.8 8.7 17.0 14.7 7.3 10.5 5.7 5.7 6.6 6.2 5.5 5.4 4.8 4.0 5.9 4.8 5.2 5.9 5.3 6.8 8.7 4.9 5.0 6.2 6.3 6.2
#

FY2011-13E EPS CAGR (%) 20.9 20.2 30.5 24.5 11.6 19.1 9.2 3.1 10.8 18.7 (2.4) (10.9) 6.1 5.1 14.3 10.4 22.4 8.8 13.7 7.4 44.2 14.6 16.5 20.0 6.1 8.6

FY2013E RoA (%) 1.5 1.3 1.7 1.5 0.9 1.2 0.9 1.0 1.1 0.8 0.9 0.5 0.9 0.8 0.7 1.4 0.7 1.2 1.0 1.0 1.1 0.7 0.6 0.8 0.5 0.5

FY2013E RoE (%) 21.0 14.1 20.9 15.6 17.2 20.6 17.8 16.8 19.6 18.0 17.2 15.1 17.9 15.7 14.5 20.4 16.4 17.0 15.8 20.0 22.6 17.0 17.1 17.9 12.5 12.8

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), Without adjusting for SASF

July 28, 2011

Bank of Baroda | 1QFY2012 Result Update

Income statement
Y/E March (` cr) NII - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY07 3,786 17.4 1,390 16.6 5,176 17.2 2,544 6.7 2,632 29.5 982 7.0 1,650 48.0 623 37.8 1,026 24.1 FY08 3,912 3.3 2,051 47.6 5,963 15.2 2,934 15.3 3,029 15.1 821 (16.3) 2,207 33.8 772 35.0 1,436 39.9 FY09 5,123 31.0 2,758 34.5 7,881 32.2 3,576 21.9 4,305 42.1 962 17.1 3,343 51.5 1,116 33.4 2,227 55.1 FY10 5,939 15.9 2,806 1.8 8,746 11.0 3,811 6.6 4,935 14.6 697 (27.5) 4,238 26.8 1,180 27.8 3,058 37.3 FY11 8,802 48.2 2,809 0.1 11,611 32.8 4,630 21.5 6,982 41.5 1,331 90.9 5,650 33.3 1,409 24.9 4,242 38.7 FY12E 9,736 10.6 2,905 3.4 12,641 8.9 4,734 2.3 7,907 13.3 1,321 (0.8) 6,586 16.6 1,976 30.0 4,610 8.7 FY13E 11,105 14.1 3,425 17.9 14,529 14.9 5,383 13.7 9,146 15.7 1,441 9.1 7,705 17.0 2,500 32.4 5,205 12.9

Balance sheet
Y/E March (` cr) Share Capital Reserves & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab & Prov. Total Liabilities Cash balances Bank balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY07 366 8,284 33.4 1,143 2,719 5,719 6,414 11,867 34,944 39.6 1,089 5,213 26.2 FY08 366 10,678 21.7 3,927 5,423 7,172 9,370 12,930 43,870 27.6 2,427 4,302 25.5 FY09 366 12,514 26.5 5,636 7,132 8,628 10,596 13,491 52,446 34.3 2,310 4,578 26.2 FY10 366 14,741 25.4 6,160 7,190 8,598 13,540 21,927 61,182 22.2 2,285 4,347 22.8 FY11 393 20,600 26.6 12,906 9,402 9,657 19,868 30,066 71,261 30.6 2,300 6,226 28.8 FY12E 393 24,160 19.0 15,404 11,188 13,130 23,626 35,884 FY13E 393 28,179 17.0 18,022 13,090 15,518 27,642 41,984

124,916 152,034 192,397 241,262 305,439 363,473 425,263

143,146 179,599 226,672 278,317 358,397 427,747 500,464

86,020 100,736 19.0 2,662 7,431 19.4 17.0 3,022 8,695 17.0

83,621 106,701 143,251 175,035 228,676 272,125 318,386

143,146 179,600 226,672 278,317 358,397 427,747 500,464

July 28, 2011

10

Bank of Baroda | 1QFY2012 Result Update

Ratio analysis
Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE 3.0 0.8 2.2 0.1 2.3 1.0 3.3 2.0 1.3 0.5 0.8 15.6 12.4 2.4 0.5 1.9 0.3 2.2 0.9 3.2 1.8 1.4 0.5 0.9 16.4 14.6 2.5 0.5 2.0 0.4 2.5 0.9 3.4 1.8 1.6 0.5 1.1 17.0 18.6 2.4 0.3 2.1 0.3 2.4 0.8 3.2 1.5 1.7 0.5 1.2 18.0 21.9 2.8 0.4 2.3 0.1 2.5 0.7 3.2 1.5 1.8 0.4 1.3 17.6 23.5 2.5 0.3 2.1 0.0 2.2 0.7 2.9 1.2 1.7 0.5 1.2 17.3 20.2 2.4 0.3 2.1 0.0 2.1 0.7 2.8 1.2 1.7 0.5 1.1 17.5 19.6 31.0 3.7 0.7 22.2 2.9 0.9 14.3 2.5 1.0 10.4 2.1 1.7 8.1 1.6 1.9 7.4 1.4 2.6 6.6 1.2 3.0 28.1 236.6 6.0 39.3 302.1 8.0 60.9 352.4 9.0 83.7 413.2 15.0 108.0 534.4 16.5 117.4 625.1 23.0 132.5 727.4 26.0 2.5 0.6 1.3 0.2 76.0 1.8 0.5 1.2 0.3 75.0 1.3 0.3 0.9 0.1 75.6 1.4 0.3 1.2 0.4 86.0 1.4 0.3 1.1 0.3 85.0 1.7 0.5 1.1 0.2 80.0 2.0 0.6 1.1 0.2 78.0 33.2 66.9 11.8 8.7 31.2 70.2 12.9 7.6 29.6 74.5 13.1 7.9 29.6 72.5 13.4 8.6 28.7 74.9 13.6 9.3 28.2 74.9 14.2 9.7 27.9 74.9 14.1 9.6 3.1 49.2 0.8 12.4 2.5 49.2 0.9 14.6 2.6 45.4 1.1 18.6 2.4 43.6 1.2 21.9 2.8 39.9 1.3 23.5 2.5 37.5 1.2 20.2 2.5 37.0 1.1 19.6 FY07 FY08 FY09 FY10 FY11 FY12E FY13E

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Bank of Baroda | 1QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Bank of Baroda No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

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