VALUATION OF BANK OF BARODA

Rs. 000's
Income Statement
Expected
Interest Earned FY17 FY18 FY19 FY20 FY21 FY22
Growth

Income from
327,644,278 344,897,712 356,232,003 776,611,014 834856840.05 897471103.0538 7.50%
advances

5% 3% 118%
Income from
117,090,236 115,666,421 141,752,312 192,335,963 199067721.705 206035091.9647 3.50%
Investments
-1% 23% 36%
Total 444,734,514 460,564,133 497,984,315 968,946,977 1,033,924,562 1,103,506,195

Interest
Expended
Interest on
276,299,695 268,657,055 285,723,061 448,564,844 520335219.04 603588854.0864 16.00%
Deposits
-3% 6% 57%
Interest on
3,066,743 5,714,083 21,044,855 26,834,837 32067630.215 38320818.10693 19.50%
borrowings
86.32% 268.30% 27.51%
Others 16,590,832 17,233,706 18,289,258 24,999,224 27249154.16 29701578.0344 9.00%
4% 6% 37%
Total 295,957,270 291,604,844 325,057,174 500,398,905 579,652,003 671,611,250

Net Interest
148,777,244 168,959,289 172,927,141 468,548,072 454,272,558 431,894,945
Income
13.57% 2.35% 170.95%
 Other Income 79,367,778 79,922,125.00 78,870,504.00 121,913,317 137152481.625 154296541.8281 12.50%
1% -1% 55%
Total income 228,145,022 248,881,414 251,797,645 590,461,389 591,425,040 586,191,487
Operating
103,498,038 113,265,821 127,689,671 205,762,807 216050947.35 226853494.7175 5.00%
Expenses
9.44% 12.73% 61.14%
Provisions and
106,872,853 154,736,238 144,315,412 195,276,738 226521016.08 262764378.6528 16.00%
Contingencies
Profit Before
17,774,131 -19,120,645 -20,207,438 189,421,844 148,853,077 96,573,613
Tax
Taxes 4,443,533 -4,780,161 -5,051,860 47,355,461 37,213,269 24,143,403 25%
Profit After Tax 13,330,598 -14,340,484 -15,155,579 142,066,383 111,639,807 72,430,210
Dividend 3327878 0 0 0
Dividend tax 0 0 0

Balance to
10,002,720 -14,340,484 -15,155,579 142,066,383
reserve
Share Capital 115207899 1322758066 1322012822 142066383
Reserves 426,054,794 460,358,685 494,237,556 751,789,234
Book Value 1,578,134,693 1,783,116,751 1,816,250,378 3,062,072,527
Book Value /
1.37 1.35 1.37 1.33
Share

Average Closing 159.44 159.12 123.4 99.2

Price
Multiple 116.395 118.039 89.871 74.845
Target
Margin of Safety
Intrinsic value

Current Market
Price
Assumption Explanations

on adavnces due to healthy transaction in corporte loans

and reatil growth was quite good . Expected
growth was assumed as approximately 8%

on investment

cost cost of deposit rate is reduced, so bob will

reduce the cost

cost

cost
growth rate

on advances

on advances

Tax Rate
 BALANCE SHEET
Expected
Rs.in 000;s FY 17 FY 18 FY19 FY20 FY21 FY22 Growth
Advances 3922622965 4379412597 4842148107 7065397286 7771937015 8549130716 10%
12% 11% 46%
Investments 1407164332 1751372281 1957162404 2897267230 3244939298 3634332013 12%
24% 12% 48%
Total 5329787297 6130784878 6799310511 9962664516 11016876312 12183462729
15% 11% 47%
Deposits 6172568665 6074513648 6655886854 9732281492 10462202604 11246867799 7.5%
-2% 10% 46%
SLR 1111062360 1093412457 1198059634 1751810669 1883196469 2024436204 18%
CRR 185177060 182235409 199676606 291968445 313866078 337406034 3%
Total
deposits 4876329245 4798865782 5258150615 7688502379 8265140057 8885025561

Borrowings 312420017 648598170 688675317 957526987 2751736255.12 3298437168.01

107.60% 6.18% 39.04%
NIM 8.34% 7.51% 7.32% 9.73% 9.38% 9.06%

Face Value 2 2 2 2
No of shares
1152079899 1322758066 1322758066 2310283293
Dividend
Payout 24.06% 0% 0% 0%
Assumption
growth rate

growth rate

growth rate

SLR Rate
CRR Rate
 VALUATION OF SBI BANK
Rs. Cr
Income Statement

Interest Earned FY17 FY18 FY19 FY20 FY21

Income from advances 166,246 150,162 173,079 195,039 209667

-10% 15% 13%

Income from Investments 64,201 70,338 80,244 74,813 75561
10% 14% -7%
Total 230,447 220,499 253,322 269,852

Interest Expended
Interest on Deposits 138,787 136,109 140,920 148,137 152285
-2% 4% 5%
Interest on borrowings 4,618 5,687 10,104 7,192 7263.688
Others 5,710 4,807 4,844 5,795 5881.925
-16% 1% 20%
Total 149,115 146,603 155,867 161,124

Net Interest Income 81,333 73,896 97,455 108,728

-9.14% 31.88% 11.57%

Other Income 68,193 77,557.39 77,365.21 98,159 113864

13.73% -0.25% 26.88%

Total income 149,526 151,454 174,820 206,887
Operating Expenses 87,290 96,155 114,800 131,782
Provisions and
62,626 67,958 56,951 56,928
Contingencies
Profit Before Tax -391 -12,658 3,069 18,177
Taxes -98 -3,165 767 4,544
Profit After Tax -293 -9,494 2,302 13,633
Dividend 2108.56 0 0 0
Dividend tax 387.96 0 0 0

Balance to reserve -2,790 -9,494 2,302 13,633

 Share Capital 797.35 892.46 892.46 892.46
Reserves 216,395 250,168 233,603 229,429
Book Value 217,192.14 251,060.12 234,495.66 230,321.95
Book Value / Share 272.39 281.31 262.75 258.08

Average Closing Price 288.48 285.34 282.44 295.67

Multiple 1.059 1.014 1.075 1.146
Target
Margin of Safety
Intrinsic value

Current Market Price

 Expected
FY22 Assumption Explanations
Growth

retail loan growth is better which had majority of Home loans

225392 8% on Advances and Corporate loan growth declined, conservative nature was
adopted ,so 8% growth rate is taken

76316.61 1% on Investments SBI has reduced its investments outside India , so there is a
low rate of growth

156549 2.8% Cost cost of deposit rate is reduced, SBI will reduce the cost

7336.325 1% Cost lower borrowings rate due to Covid pandemic and high
liquidity in SBI, so there is less borrowings
5970.154 1.5% Cost Cost from other borrowings has increased on year basis

other incomes is expected to grow at a fast rate. Because of

132083 16% various elements like Crerdit card fees,Insurance premium
income, commisions and so on

25% Tax Rate

267.75
 BALANCE SHEET

Rs.in Cr FY 17 FY 18 FY19 FY20 FY21 FY22

Advances 1896887 1960118 2226853 2374311 2552384.33 2743813.15
3% 14% 7%
Investments 1027281 1183794 1119248 1228284
15% -5% 10%
Total 2924168 3143912 3346101 3602595
8% 6% 8%
Deposits 2599811 2722178 2940541 3274161
5% 8% 11%
SLR 467966 489992 529297 589349
CRR 77994 81665 88216 98225
Total deposits 2053851 2150521 2323027 2586587

Borrowings 336366 369079 413748 332901

NIM 8% 7% 8% 7%

Face Value 1 1 1 1
No of shares 797.35 892.46 892.46 892.46
Dividend Payout
20.11% 0% 0% 0%
Expected
Assumption
Growth

7.50%

18% SLR Rate

3% CRR Rate