Bank of Baroda

A Story of Commitment, Consistency & Credibility

Abhishek Mittal - 304
Poonam Pandey - 335
Raj kumar
338
Ritika Rani
- 345
Saikat Sarkar - 348
Sakshi Arora
- 349
Honey
- 371
Lakshay
- 374
Siddharth
- 379

DOMESTIC BRANCH NETWORK

Regional Break-up of
Domestic Branches as on 31st Dec, 2011
Metro

Urban

SemiUrban

Rural

809

689

957

1,236

Bank has added 983 branches in its

Indian operations during Dec06 to
Dec11.
With this, its domestic branches
totaled 3,691 at end-Dec, 2011.
During Apr-Dec, FY12, the Bank
opened 327 new branches.
Bank still has 383 licences left with
it to open branches during FY12.
Banks newly opened branches
during Apr-Dec, FY12 are well
diversified across the nation, though
a large no. of branches were opened
in UP & Uttaranchal; Gujarat;
Southern Zones & Rajasthan.
Around 59.4% of the Banks network
at the end-Dec, FY12 was situated in
rural & semi-urban areas.

CONCENTRATION (%): DOMESTIC BRANCH NETWORK [AS ON 31 ST DEC, 2011]

CAMEL MODEL

INTRODUCTION
Banking sector is one of the fastest growing sectors in
India. Today's banking sector becoming more complex.
Evaluating Indian banking sector is not an easy task.
There are so many factors, which need to be taken care
while differentiating good banks from bad ones. To
evaluate the performance of banking sector we have
chosen the CAMEL model which measures the
performance of banks from each of the important
parameter like
Capital Adequacy, Assets Quality, Management
Efficiency, Earning Quality and Liquidity.

CAPITAL ADEQUACY
It is important for a bank to maintain depositors
confidence and preventing the bank from going
bankrupt. It reflects the overall financial
condition of banks and also the ability of
management to meet the need of additional
capital. The following ratios measure capital
adequacy :a)
Capital Adequacy Ratio
b)
Debt Equity Ratio
c)
Advance to asset ratio
d)
Government Securities to total Investments

Capital Adequacy Ratio:-The capital adequacy ratio is developed to

ensure that banks can absorb a reasonable level of losses occurred
due to operational losses and determine the capacity of the bank in
meeting the losses. As per the latest RBI norms, the banks should
have a CAR of 12%.
CAR= Tier I Capital + Tier II Capital
Risk weighted Assets
TIER 1 CAPITAL - (paid up capital + statutory reserves + disclosed
free reserves) - (equity investments in subsidiary + intangible
assets + current & b/f losses)
TIER 2 CAPITAL -A)Undisclosed Reserves, B)General Loss
reserves, C) hybrid(debt/equity) capital instruments and
subordinated debts

THE MINIMUM CAR AS PER RBI NORMS IS 12% AT

PRESENT. IN FACT BANK OF BARODA HAS ALWAYS
SHOWN A HEALTHY & IMPROVED MARGIN OF
OVER 12% WHICH IS STIPULATED BY RBI. IN THE
YEAR 2009 CAR IS 12.88% BUT IN 2010 IS DECLINED
BY.4%.THIS IS DUE TO RISE IN RISK WEIGHTED
ASSETS.

Capital
Adequacy
Ratio

31.03.2009

31.03.2010

31.03.2011

31.03.2012

12.88%

12.84%

13.02%

12.95%

DEBT EQUITY RATIO

Debt-Equity ratio is arrived at by dividing Total

borrowings and Deposits by Net Worth. Net Worth
includes equity capital, preference capital, reserves
and surplus less revaluation reserves and
miscellaneous expenses not written off.
Debt-Equity Ratio = Debt / Equity

As on

As on

As on

As on

As on

31/3/2007

31/3/2008

31/3/2009

31/03/2010

31/03/2011

DEBT

2,113,556,145

2,617,481,094

2,864,094,335

3,362,600,873

3,891,989,283

EQUITY

386,494,929

455,068,711

500,173,019

563,578,548

744,319,564

RATIO

5.47

5.75

5.73

5.97

5.23

PARTICULAR
S

Interpretation of the Debt Equity Ratio:-

Deposits form a major portion of liabilities for
banks and are included in the debt component of
the debt equity ratio.
A debt equity ratio of 50 times is considered
healthy for banks. Ratios of Bank of Baroda are
below 50 times, which is much below the
acceptable limit and, therefore, has scope to
increase the debt component on their capital
structure.

ADVANCES TO ASSETS
Total

Advances also includes receivables.

The value Total Assets is excluding
revaluation of all the assets.
Advances to Assets = Total Advances /
Total assets
As on

As on

As on

As on

As on

31/3/2007

31/3/2008

31/3/2009

31/03/2010

31/03/2011

ADVANCES

914,974,465

1,120,389,619

ASSETS

56,209,726

74,232,950

81,579,900

88,579,119

177,973,776

RATIO

16.28

15.09

17.42

18.83

12.26

PARTICULAR
S

1,421,177,106 1,667,592,117 2,181,947,347

Interpretation of the Advances to Assets

This ratio shows the total advances as a
percentage of total assets, which can give the
capital adequacy of the firm. It shows the ability
of firm to meet capital need.
Here, we see that Bank of Baroda has
maintaining constant percentage of advances to
assets for last 4 years but in this year 2006
2007 it has decrease by 1/3 almost.

G SECURITIES TO TOTAL
INVESTMENTS
The ratio is calculated by dividing the amount
invested in government securities by total
investments.
G -Securities to Total Investments = GSecurities / Total Investments X 100
Calculation of G Securities to Total
Investments of Bank of Baroda:

As on

As on

As on

As on

As on

31/3/2007

31/3/2008

31/3/2009

31/03/2010

31/03/2011

G Securities.

447,050,000

659,110,500

1,081,788,000

1,325,595,500

1,172,980,500

INVESTMENT
S

532,117,500

718,785,000

1,086,462,500

1,337,770,000

1,200,149,970

RATIO

84.01

91.70

99.57

99.09

97.74

PARTICULAR
S

INTERPRETATION OF THE G
SECURITIES TO TOTAL INVESTMENTS:G Securities to investments indicate the
percentage of risk free investments in banks
investment portfolio.

Since government securities are risk free, the

higher the G Securities to investments ratio the
lower the risk involved in bank investments.
The calculation indicates that Bank of Baroda
has shown a stable rise in G Securities
investments and therefore it has less risk
involved in banks investments.

TOTAL ADVANCES TO TOTAL

DEPOSITS
Bank of Baroda

2012

2011

0.76

0.75

The ratio measures the efficiency of

management in converting the deposits
available with the bank into high earning
advances.

BUSINESS PER EMPLOYEE

09
Bank of
Baroda

10
8.63

11
9.81

12
12.29

14.66

This tool measures the efficiency of all the

employees of a bank in generating business for
the bank.

PROFIT PER EMPLOYEE

Years
Ratios

09

10
6.05

11
7.85

12
10.59

11.87

This ratio measures the efficiency of

employees at the branch level. It also gives
valuable inputs to assess the real strength of a
banks branch network.

OPERATING PROFIT TO AVG.

WORKING FUNDS
Years
Ratios

09

10
2.22%

11
2.03%

12
2.22%

2.19%

This ratio indicates how much a bank

can earn from its operations net of the
operating expenses for every rupee spent
on working funds.

INTEREST SPREAD
09

10

11

12

4.02

4.15

4.60

4.63

NET PROFIT TO AVG. ASSET

09

10
1.10%

11
1.21%

12
1.33%

1.24%

This ratio measures return on assets employed

or the efficiency in utilization of assets.
This ratio measures the return on assets
employed. Higher ratio indicates better earning
potential in the future.

INTEREST INCOME TO TOTAL

INCOME
12

11
0.90

10
0.88

0.86

This ratio measures the income from lending

operations as a percentage of the total income
generated by the bank in a year.

NON INTEREST INCOME TO TOTAL

INCOME
12

11
0.10

10
0.12

0.14

This measures the income from operations

other than lending as a percentage of the total
income.

LIQUIDITY RATIOS
Liquid Assets to Total assets
Govt. Securities to total assets
Liquid Assets to Total Deposits
Liquid Assets to Demand Deposits
Approved securities to total assets

LIQUID ASSETS TO TOTAL ASSETS

Liquid Assets include cash in hand, balance with
the RBI, balance with other banks (both in India
and abroad), and money at call and short notice.
Liquid ratio (Cash with RBI + Cash for short
notice liquid asset)
Ratio = Liquid Asset/ Total Asset

2012

0.144
2011 0.139

INCREASE IN THIS RATIO SHOWS THAT COMPANY

CAN PAY OF ITS SHORT TERM DEBT EASILY

GOVT. SECURITIES TO TOTAL

ASSETS
Government securities are the most liquid and safe
investment.
This ratio measures the proportion of risk-free
liquid assets invested in government securities as
a percentage of the assets held by the bank and is
arrived by dividing investment in government
securities by the total assets.
Ratio = Government Securities / Total Asset

2012 0.154
2011 0.165

INCREASE IN THIS RATIO SHOWS THAT COMPANY

HAS TO FACE LESS RISK

LIQUID ASSETS TO DEMAND

DEPOSITS
This ratio measures the ability of a bank to meet
the demand from demand deposits in a particular
year.
It is arrived at by dividing the liquid assets by
total demand deposits. The liquid assets include
cash in hand, balance with the RBI, balance with
other banks (both in India and abroad), and
money at call and short notice.
Ratio = Liquid Asset / DemandDeposit

2012

0.619
2011 0.570

LIQUID ASSETS TO TOTAL

DEPOSITS

This ratio measures the liquidity available to the

depositors of a bank. Liquid assets include cash
in hand, balance with the RBI, balance with
other banks (both in India and abroad), and
money at call and short notice.
Ratio = Liquid asset/Total deposit
2012

0.166
2011 0.214

APPROVED SECURITIES TO TOTAL

ASSETS
This is arrived at by dividing the total amount
invested in approved securities by total assets.
Approved securities are investments made in the
state-associated bodies like electricity boards,
housing boards, corporation bonds, share of
regional rural banks.
Ratio = Approved Securities / Total asset

2012

0.00036
2011 0.00149