Bank of Baroda -QTRLY RESULTS - Q3 FY 2012 - Q/R DEC,2011 - NPT UP 20% YoY ON HIGHER OTHER INCOME - HUGE PROVISIONS A CONCERN

Bank of Baroda

NSE Symbol        BANKBARODA

Bank Of Baroda has declared results for the third quarter ended Dec,2011.

Interest on Advances stands at Rs.5735.95 cr – up by  4.63% from Q2 FY 12  and up by 36.17% from Q3 FY 11.

Global loan book expanded nearly 26% y-o-y to Rs 2.61 lakh crore while deposits rose more than 26% to Rs 3.49 lakh crore.

Income on Investments  stands at Rs.1646.16 cr – up by  6.47% from Q2 FY 12 ; and up by 28.87% from Q3 FY 11.

Other Income stands at Rs.1149.33 Cr – up from Q2 FY 12 by a huge 56.51%; and also up by 69.98% from Q3 FY 11.

Total Income stands at Rs.8821.32 cr – up by 10.46% from Q2 FY 12 ; and up by 39.09% from Q3 FY 11.

Net Interest Income stands at Rs.2655.51 cr – up by  3.45% from Q2 FY 12; and up by 15.85% from Q3 FY 11.

Operating Profit stands at Rs.2608.19 cr – up by a decent 21.88% from Q2 FY 12 (helped by a huge other Income) and also up by    40.89% from Q3 FY 11.

Provisions has shot up to Rs.836.74 Cr – up by a huge 73.11% from Q2 FY 12; and a huge 175.19% from Q3 FY 11.

Profit before tax stands at Rs.1758.45 cr – up by  6.99% from Q2 FY 12; and up by 13.66% from Q3 FY 11.

Net Profit stands at Rs.1289.85 cr – up by 10.61% from Q2 FY 12 and up by 20.67% from  Q3 FY 11. Thus, the 2 factors, other Income on positive side, and huge provisions on Negative side have balanced to give 20% higher YoY growth in Profit.

Capital Adequacy Ratio stands well at 13.45 .After the recent CRR Cut by .5%, the Bank will have good surplus funds and prudent lending should see it build better profits in the coming quarters.

% of Gross/Net NPA stands at  0.51 – against 0.47 in Q2 FY 12 and   0.36 in Q3 FY 11.

Return on Assets is good at 1.29.

Basic EPS, on a FV of Rs.10 stands well at Rs.32.94 in Q3 FY 12; Rs.29.78 in Q2 FY 12; Rs.          26.38 in Q1 FY 12. Hence, annual EPS must be around Rs.122.

The current market price is Rs.786.10,while the 52 week high price  is Rs.1006.65 and the 52 week low price is Rs.631.00

The PE Ratio amounts to 6.44.

Coming quarters should see better results for most of the banks.

RESULTS TABLE :

Bank Of Baroda	31-Dec-11	30-Sep-11	%dif1	30-Jun-11	31-Mar-11	31-Dec-10	%dif2
Interest on Advances	573595	548235	4.63	507723	458723	421220	36.17
Income on Investments	164616	154614	6.47	135245	131840	127740	28.87
Income on Balances With RBI	23382	20792	12.46	16276	13361	11463	103.98
Others	5606	1503	273	3933	29492	6192	-9.46
Interest Earned	767199	725144	5.8	663177	633416	566615	35.4
Other Income	114933	73434	56.51	64087	83449	67615	69.98
Total Income	882132	798578	10.46	727264	716865	634230	39.09
Interest Expended	501648	468453	7.09	433458	372028	337389	48.69
Net Interest Income	265551	256691	3.45	229719	261388	229226	15.85
Employees Cost	67403	64661	4.24	64538	98971	69418	-2.9
Other Operating Expenses	52262	51467	1.54	46140	51285	42303	23.54
Operating Expenses	119665	116128	3.05	110678	150256	111721	7.11
Total Expdr(excl. prov)	621313	584581	6.28	544136	522284	449110	38.34
Operating Profit	260819	213997	21.88	183128	194581	185120	40.89
Provisions	83674	48335	73.11	39105	59041	30406	175.19
Exceptional Items	1300	1300	0	1301	-	-
Profit before tax	175845	164362	6.99	142722	135540	154714	13.66
Tax Expense	46860	47754	-1.87	39437	6105	47826	-2.02
Net Profit	128985	116608	10.61	103285	129435	106888	20.67
Face Value (Rs.)	10	10	0	10	10	10	0
Paid-up Equity	39281	39281	0	39281	39281	36553	7.46
Capital Adequacy Ratio	13.45	12.73	5.66	12.04	13.02	11.68	15.15
Basic EPS	32.94	29.78	10.61	26.38	35.51	29.34	12.27
Gross/Net NPA	132527	111858	18.48	102442	79088	74424	78.07
% of Gross/Net NPA	0.51	0.47	8.51	0.44	0.35	0.36	41.67
Return on Assets	1.29	1.23	4.88	1.13	1.51	1.34	-3.73
Public holding (%)	42.97	42.97	0	42.97	42.97	46.19	-6.97

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