Bank of Baroda's all round growth

Bank of Baroda has posted an operating profit of Rs. 1,036.47 crores and a net profit of Rs. 301.13 crores in the year ended March 31, 2001. The profit has been arrived at after charging an amount of Rs. 174.94 crores towards expenses on VRS. Mr. P. S. Sehnoy has stated the bank had registered improvement in key areas such as capital adequacy ratio, net NPA, staff productivity and book value of the share.

The average deposits registered a growth of 13.73 per cent with outstanding deposit level at Rs. 53,985.78 crores. Advances were up by 16.43 per cent with the outstanding amount at Rs. 27,420.68 crores. Following the RBI guidelines on prudential norms, the bank had provided Rs. 149.31 crores more as compared to previous year figures for non-performing advances. The net NPA to net advances has declined to 6.69 per cent from 6.95 per cent and the share of NPA to total risk weighted assets dropped to 5.62 per cent from 5.90 per cent.

Mr. P. S. Shenoy, Chairman and Managing Director of the bank, said the results should be considered satisfactory in the backdrop of the economy and growth in the banking system.

``Considering a growth of 20 per cent each in deposits and advances in the current financial year we expect an increase of 30 per cent in operational profits and a 20 per cent rise in net profit,'' he said. He also said that the bank would give thrust to its international operations. The bank had already applied to the Malaysian Government to start operations there. ``In the U.K. we have started retail lending,'' the CMD said. Further the bank would strengthen its subsidiaries by tying up with foreign partners.

Mr. Shenoy said the bank had already applied to the Reserve Bank of India for insurance business and would start life insurance business once it received the licence. ``We are looking forward to becoming an universal bank,'' he added.

The bank has relieved 6,700 employees under the voluntary retirement scheme costing Rs. 845 crores. As regards the initiatives in the current year, the bank has taken up major information technology revamping in the organisation.

Send this article to Friends by E-Mail

Section  : Business
Previous : SBM aims at higher profit
Next     : Automartindia sets up shop in Chennai