2020-21 वित्‍तीय रिपोर्ट

Financial Results March 21

SEBI Formate

Segment

NOTES TO STANDALONE FINANCIAL RESULTS

• The above standalone financial results have been recommended by the Audit Committee of Board and approved at the meeting of the Board of Directors held on January 27, 2021. The same has been subjected to limited review by Statutory Central Auditors of the Bank.
• The above standalone financial results for the quarter and nine months ended December 31, 2020 have been prepared in accordance with recognition and measurement principles laid down  in  Accounting Standard (AS-25) on 'Interim Financial Reporting' issued by the Institute of Chartered Accountants of India.
• The Bank has continued to follow the same accounting policies and practices in preparation of financial results for the quarter/ nine months ended December 31, 2020 as followed in the previous financial year ended March 31, 2020. Provision for contingencies, Employee Benefits, Direct taxes (after adjustment for deferred tax) and for other items/assets are made on estimated basis for the quarter and subject to adjustments, if any, at the year end.
• In terms of Reserve Bank of India (RBI) guidelines Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel- III framework are being made available on our website “www.bankofbaroda.com''. These disclosures have not been subjected to review/ audit by Statutory Central Auditors of the Bank.
• During the quarter, the Bank has issued AT-1 bonds aggregating to ₹ 83300 lakh.
• As per RBI Circular no. DBR.No.BP.15199/21.04.048/2016-17 and DBR.No.BP.1906/21.04.048/20 17-18 dated June 23, 2017 and August 28, 2017 respectively, for the accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC), the Bank is holding total provision of ₹1012804 lakh being 100% of total outstanding as on December 31, 2020.
• The Bank has estimated the liability for Unhedged Foreign Currency in terms of RBI circular DBOD.No.BP.BC.85/21.06.200/2013-14 dated January 15, 2014 and is holding a provision of ₹17148 lakh as on December 31, 2020.
• The COVID-19 outbreak was declared a global pandemic by the World Health Organization on March 11, 2020 which resulted in declined economic activity and increased volatility in financial markets. There has been a gradual pick-up in economic activity since the easing of lockdown measures which led to resumption of economic activities. The challenges still continue to unfold and the Bank is gearing itself on all fronts to meet the same and is evaluating the situation on an ongoing basis. The extent to which the COVID-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain including among other things the success of the newly developed vaccines, any new information concerning severity of the new strains of the COVID-19 pandemic and action to contain its spread or mitigate impact including further stimulus and regulatory packages, if any. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period.

  In accordance with the COVID-19 Regulatory Packages announced by the RBI on March 27, 2020, April 17, 2020 and May 23, 2020, the Bank, in accordance with its Board approved policy, offered a moratorium on the repayment of instalments and/or interest, as applicable, due between March 1, 2020 and August 31, 2020 to all eligible borrowers classified as standard, even if overdue, as on February 29, 2020. The asset classification in the moratorium granted accounts has been kept stand still during the moratorium period.

  The Bank holds provisions of ₹170935 lakh as on December 31, 2020 towards the potential impact of COVID-19. The provisions held by the Bank are in excess of the RBI prescribed norms.

• In its Interim Order dated September 3, 2020, the Hon’ble Supreme Court of India (SC), In a public interest litigation (Gajendra Sharma vs Union Of India & Anr), has directed that accounts which were not declared as NPA till August 31, 2020 shall not be declared as NPA till further orders. Based on the said interim order, the Bank has not classified any account pertaining to Domestic operations as NPA, which was not NPA as of August 31, 2020.

  Pending disposal of the case in Hon’ble SC, the Bank as a matter of prudence has made a contingent provision of ₹ 152156 Lakh. Further, interest income aggregating to ₹ 36993 Lakh has been reckoned in operating profit and as prudent measure an equal amount has been provided for. Total provision as on 31.12.2020 is ₹ 189149 lakh. If the Bank would have classified the said borrower accounts as NPA, the Gross and Net NPA ratio would have been 9.63% and 3.36 % respectively.

• RBI vide their circular no. RBI/2018-19/203 DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019 on Prudential Framework for Resolution of Stressed Assets issued guidelines for implementation of Resolution Plan, also containing requirements of additional provisions as per para 17 of this RBI circular. In compliance to the above RBI circular, the Bank holds adequate provision of ₹ 363545 lakh as on December 31, 2020.
• As per the RBI Circular No. DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019, RBI circular No DOR. No BP. BC. 34/21.04.048/2019-20 dated 11.02.2020, RBI circular No DOR. No BP. BC/4/21.04.048/2020-21 dated 06.08.2020, 72010 MSME borrower accounts were restructured amounting to ₹ 411762 Lakh as on December 31, 2020.
• As per the Reserve Bank of India (RBI) circular no. RBI/2015-16/376 DBR No. BP.BC.92/21.04.048/2015-16 dated April 18, 2016 the Bank has opted to provide the liability for frauds over a period of four quarters. Accordingly, the carry forward provision as on December 31, 2020 is ₹ 33033 lakh (Includes provision of ₹ 1182 lakh on accounts which are reported as fraud in the fresh slippage of December 2020, however not degraded due to Hon’ble SC Stay order) which is to be amortised in the subsequent quarters by the Bank.
•  Pursuant to the bipartite settlement on wage revision (due with effect from November 01, 2017), Bank holds a provision of sum of ₹ 265000 lakh as of December 31, 2020.
• Government of India has inserted section 115BAA in the Income Tax Act 1961 (“Act”)  vide the Taxation Laws (Amendment) Ordinance 2019 dated September 20, 2019, which provides a non-reversible option to domestic companies to pay corporate tax at reduced rate effective from April 01, 2019 subject to certain conditions. The Bank has assessed the applicability of the Act and opted to continue the existing tax rate (i.e. 34.944%) for the quarter/nine months period ended December 31, 2020.
• Non-Performing Assets Provisioning Coverage Ratio (including floating provision) is 85.46% as on December 31, 2020.
• The Bank has sold PSLC of ₹ 250000 Lakh during the quarter ended Dec 2020.
• Number of Investors' complaints pending at the beginning of the quarter was NIL. The Bank has received 75 Investors' complaints during the quarter ended December 31, 2020. All complaints have been disposed of during the quarter. There are NIL pending Investors' complaints at the end of the quarter.
• A penalty of ₹ 22.18 lakh has been imposed on the Bank by Reserve Bank of India for the quarter ended December 31, 2020.
• Notes on Segment Reporting
  • As per the guidelines of the RBI on compliance with the Accounting Standards, the parent Bank has adopted “Treasury Operations”, “Wholesale”, “Retail” and “Other Banking Operations”, as primary business segments and “Domestic” and “International” as secondary / geographic segments for the purpose of compliance with Accounting Standard 17 on Segment Reporting issued by Institute of Chartered Accountants of India (ICAI).
  • Segment revenue represents revenue from external customers.
  • Capital employed for each segment has been allocated proportionate to the assets of the respective segment.
• The figures for the quarter ended December 31, 2020 are the balancing figures between reviewed figures in respect of the nine months ended December 31, 2020 and the published year to date figures up to September 30, 2020.

The figures of the previous period have been regrouped / rearranged, wherever necessary, to conform to the current period classifications.

Place: Mumbai
Date: January 27th, 2021

CFS SEBI Formate

CFS Segment

NOTES TO CONSOLIDATED FINANCIAL RESULTS:

• The above consolidated financial results of Bank of Baroda (hereinafter referred as “Bank”) including Subsidiaries (hereinafter referred as “Group”), Joint Ventures and Associates have been recommended by the Audit Committee of Board and approved at the meeting of the Board of Directors held on January 27, 2021. The same has been subjected to limited review by Statutory Central Auditors of the Bank. 
• The above consolidated financial results are prepared in accordance with Accounting Standard 25 on “Interim Financial Reporting”, Accounting Standard 21 on “Accounting for Consolidated Financial Statements”, Accounting Standard 23 on Accounting for “Investment in Associates” and Accounting Standard 27 on “Financial Reporting of Interest in Joint Venture”.
• The Group has continued to follow the same accounting policies and practices in preparation of financial statement for the quarter/nine months ended December 31, 2020 as followed in the previous financial year ended March 31, 2020. Provision for contingencies, Employee Benefits, Direct taxes (after adjustment for deferred tax) and for other items/assets are made on estimated basis for the quarter and subject to adjustments, if any, at the year end.
• In terms of Reserve Bank of India (RBI) guidelines Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel- III framework are being made available on our website “www.bankofbaroda.com''. These disclosures have not been subjected to review/ audit by Statutory Central Auditors of the Bank.
• The Consolidated Financial Results comprises the financial results of 7 Domestic Subsidiaries, 8 Overseas Subsidiaries, 4 Associates and 3 Joint Ventures as under :-

• The COVID-19 outbreak was declared a global pandemic by the World Health Organization on March 11, 2020 which resulted in declined economic activity and increased volatility in financial markets. There has been a gradual pick-up in economic activity since the easing of lockdown measures which led to resumption of economic activities. The challenges still continue to unfold and the Bank is gearing itself on all fronts to meet the same and is evaluating the situation on an ongoing basis. The extent to which the COVID-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain including among other things the success of the newly developed vaccines, any new information concerning severity of the new strains of the COVID-19 pandemic and action to contain its spread or mitigate impact including further stimulus and regulatory packages, if any. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during this period.

  In accordance with the COVID-19 Regulatory Packages announced by the RBI on March 27, 2020, April 17, 2020 and May 23, 2020, the Group, in accordance with its Board approved policy, offered a moratorium on the repayment of instalments and/or interest, as applicable, due between March 1, 2020 and August 31, 2020 to all eligible borrowers classified as standard, even if overdue, as on February 29, 2020. The asset classification in the moratorium granted accounts has been kept stand still during the moratorium period.

  The Group holds provisions of ₹ 171348 lakh as on December 31, 2020 towards the potential impact of COVID-19.

• In its Interim Order dated September 3, 2020, the Hon’ble Supreme Court of India (SC), In a public interest litigation (Gajendra Sharma vs Union Of India & Anr), has directed that accounts which were not declared as NPA till August 31, 2020 shall not be declared as NPA till further orders. Based on the said interim order, the Bank has not classified any account pertaining to Domestic operations as NPA, which was not NPA as of August 31, 2020.

  Pending disposal of the case in Hon’ble SC, the Group as a matter of prudence has made a contingent provision of ₹ 152292 Lakh. Further, interest income aggregating ₹ 36993 Lakh has been reckoned in operating profit and as prudent measure an equal amount has been provided for. Total provision as on 31.12.2020 is ₹ 189285 lakh. If the Bank would have classified the said borrower accounts as NPA, the Gross and Net NPA ratio would have been 9.63% and 3.36% respectively.

• As per the RBI Circular No. DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019, RBI circular No DOR. No BP. BC. 34/21.04.048/2019-20 dated 11.02.2020, RBI circular No DOR. No BP. BC/4/21.04.048/2020-21 dated 06.08.2020, 72010 MSME borrower accounts were restructured amounting to ₹ 411762 Lakh as on December 31, 2020.
• As per the Reserve Bank of India (RBI) circular no. RBI/2015-16/376 DBR No. BP.BC.92/21.04.048/2015-16 dated April 18, 2016 the Group has opted to provide the liability for frauds over a period of four quarters. Accordingly, the carry forward provision as on December 31, 2020 is ₹ 33033 lakh (Includes provision of ₹ 1182 lakh on accounts which are reported as fraud in the fresh slippage of December 2020, however not degraded due to Hon’ble SC Stay order) which is to be amortised in the subsequent quarters by the Bank.
• Government of India has inserted section 115BAA in the Income Tax Act 1961  vide the Taxation Laws (Amendment) Ordinance 2019 dated September 20, 2019, which provides a non-reversible option to domestic companies to pay corporate tax at reduced rate effective from April 01, 2019 subject to certain conditions. The Bank has assessed the applicability of the act and opted to continue the existing tax rate i.e.34.944% for the quarter/nine months ended December 31, 2020.   
• Pursuant to the bipartite settlement on wage revision (due with effect from November 01, 2017), Group holds a provision of sum of ₹ 267225 lakh as of December 31, 2020.
• Notes on Segment Reporting
  • As per the guidelines of the RBI on compliance with the Accounting Standards, the Bank has adopted “Treasury Operations”, “Wholesale”, “Retail” and “Other Banking Operations”, as primary business segments and “Domestic” and “International” as secondary / geographic segments for the purpose of compliance with Accounting Standard 17 on Segment Reporting issued by Institute of Chartered Accountants of India (ICAI).
  • Segment revenue represents revenue from external customers.
  • Capital employed for each segment has been allocated proportionate to the assets of the respective segment.
• The figures for the quarter ended December 31, 2020 are the balancing figures between reviewed figures in respect of the nine months ended December 31, 2020 and the published year to date figures up to September 30, 2020.
• The figures of the previous period have been regrouped/rearranged, wherever necessary, to confirm to the current period classification

  Sanjiv Chadha	Shanti Lal Jain;	Vikramaditya Singh Khichi	Ajay K Khurana	Ian Desouza	G Ramesh;
  Managing Director & CEO	Executive Director	Executive Director	Executive Director	Chief Financial Officer;	General Manager - Corporate Accounts and Taxation

LCR disclosure file for Q3 FY2020-21 (December 2020)

Note: The Liquidity Coverage Ratio mentioned above is the daily average of 69 working days for the quarter October - December 2020

Solo SEBI Format

Solo Segment

Solo Notes SEBI

Standalone SEBI Notes Sept 2020

• The above standalone financial results have been recommended by the Audit Committee of Board and approved at the meeting of the Board of Directors held on October 29, 2020. The same has been subjected to limited review by Statutory Central Auditors of the Bank.
• The Bank has continued to follow the same accounting policies in preparation of financial results for the quarter/Half Year ended September 30, 2020 as followed in the previous financial year ended March 31, 2020.
• As a consistent practice, the Bank has continued to make a provision of 20% on the Secured Sub-standard Advances as against the regulatory minimum requirement of 15%. The Bank also continues to make 100% provision on certain classes of non-performing retail advances. In addition to the above, the Bank has also continued to maintain provision on non-fund based facilities of NPA borrowers, by applying 50% credit conversion factor (CCF), based on the asset class of the fund-based facility of the borrower.
• The figures for the quarter ended September 30, 2020 are the balancing figures between reviewed figures in respect of the half year end September 30, 2020 and the published year to date figures up to June 30, 2020.
• In terms of Reserve Bank of India (RBI) guidelines Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel- III framework are being made available on our website “www.bankofbaroda.com''. These disclosures have not been subjected to review/ audit by Statutory Central Auditors of the Bank.
• During the quarter, the Bank has exercised the call option and redeemed bonds amounting to Rs.121150 Lakh. The Bank has issued AT-1 bonds aggregating to Rs.174500 lakh.
• Other income of the Bank includes brokerage, commission, fees, income from foreign exchange fluctuation, profit / loss on sale of investments, recovery from written off accounts etc.
• As per RBI Circular no. DBR.No.BP.15199/21.04.048/2016-17 and DBR.No.BP.1906/21.04.048/20 17-18 dated June 23, 2017 and August 28, 2017 respectively, for the accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC), the Bank is holding total provision of Rs.1090798 lakh being 100% of total outstanding as on September 30, 2020.
• The Bank has estimated the liability for Unhedged Foreign Currency in terms of RBI circular DBOD.No.BP.BC.85/21.06.200/2013-14 dated January 15, 2014 and is holding a provision of Rs.18535 lakh as on September 30, 2020.
• The COVID-19 outbreak was declared a global pandemic by the World Health Organization on March 11, 2020 and affected world economy as well as Indian economy. On account of continuous volatility in financial market, the Bank has considered internal and external sources of information including economic forecasts and industry reports up to the date of approval of financial results in determining the impact on various elements of its financial statements including recoverability of advances & provision thereon, investment valuation, other assets and liabilities of the Bank. Given the uncertainty because of COVID-19 pandemic, the Bank is continuously monitoring any material change in future economic condition which may impact the Bank’s operations and its financial results depending on the developments which may differ from that estimated as at the date of approval of these financial results.
• RBI has announced measures under Regulatory Package for COVID-19 vide its circulars dated March 27, 2020, April 17, 2020, May 23, 2020 and August 6, 2020. In accordance with RBI Guidelines, the Bank is required to make provision not less than 10% of the outstanding advances in respect of borrower account where asset classification benefit has been granted. However, the Bank had made provision @20% in March 31, 2020 while w.e.f. April 1, 2020 provision @10% is made wherever said benefit is extended to the borrowers. Details of relief extended in terms of said circular are as follows:

  S.No	Particulars	Amount (In Rs lakh)
  1.	Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended as on  September 30, 2020	8589855
  2.	Respective amount, where asset classification benefit is extended as on  September 30, 2020	1402249
  3. a)	Provision made during the Q4 FY 2020	81065
  3. b)	Provision made during the Q1 FY 2021 (Reversal of Rs.6907 lakh done in Q1 FY2021 out of provision made during Q4 FY2020 on account of slippage	106519
  4.	Provision adjusted during the Half year ended September 30, 2020 against slippage /account closure/change in balance	12769
  5.	Residual Provision held as on September 30, 2020	174815

• 13. In its Interim Order dated September 3, 2020, the Hon’ble Supreme Court of India (SC), In a public interest litigation (Gajendra Sharma vs Union Of India & Anr), has directed that accounts which were not declared as NPA till August 31, 2020 shall not be declared as NPA till further orders. Based on the said interim order, the Bank has not classified any account as NPA, which was not NPA as of August 31, 2020.
  
  Pending disposal of the case in Hon’ble SC, the Bank as a matter of prudence has made a contingent provision of Rs.19520 Lakh in respect of such accounts that were not classified as NPA. Further, In respect of above accounts, interest income aggregating Rs.9792 Lakh has been reckoned in operating profit and as prudent measure an equal amount has been made as additional provision against those Assets. Total additional provision as on 30.09.2020 is Rs.29312 lakh. If the Bank would have classified the said borrower accounts as NPA, the Gross and Net NPA ratio would have been 9.33% and 2.67% respectively.
• As per the Govt. of India Scheme, the difference between compound interest and simple interest to eligible borrowers from 01.03.2020 to 31.08.2020 is to be credited to their respective account by 05.11.2020. For accounts closed during the said period, the period for crediting would be from 01.03.2020 and restricted to date of closure of account. The claim for reimbursement is to be made to the Govt. of India latest by 05.12.2020. No effect of the circular has been given in the enclosed financial statements.
• RBI vide their circular no. RBI/2018-19/203 DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019 on Prudential Framework for Resolution of Stressed Assets issued guidelines for implementation of Resolution Plan, also containing requirements of additional provisions as per para 17 of this RBI circular. The outstanding in such cases as on September 30, 2020 is Rs.1046733 lakh and in compliance the above RBI circular, the Bank has made additional provision of Rs.633 lakh during the quarter ended September 30, 2020 and holds total provision of Rs.361550 lakh as on September 30, 2020.
• As per the RBI Circular No. DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019, RBI circular No DOR. No BP. BC. 34/21.04.048/2019-20 dated 11.02.2020, RBI circular No DOR. No BP. BC/4/21.04.048/2020-21 dated 06.08.2020, 64698 MSME borrower accounts were restructured amounting to Rs.320523 Lakh as on September 30, 2020.
• As per the Reserve Bank of India (RBI) circular no. RBI/2015-16/376 DBR No. BP.BC.92/21.04.048/2015-16 dated April 18, 2016 the Bank has opted to provide the liability for frauds over a period of four quarters. Accordingly, the carry forward provision as on September 30, 2020 is Rs.101378 lakh which is to be amortised in the subsequent quarters by the Bank.
• Pursuant to the proposed bipartite agreement on wage revision (due with effect from November 01, 2017), Bank holds provision of sum of Rs.240000 lakh as of September 30, 2020. During the quarter, the Bank has made provision of Rs.20000 lakh on wage revision.
• Government of India has inserted section 115BAA in the Income Tax Act 1961 (“Act”) vide the Taxation Laws (Amendment) Ordinance 2019 dated September 20, 2019, which provides a non-reversible option to domestic companies to pay corporate tax at reduced rate effective from April 01, 2019 subject to certain conditions. The Bank has assessed the applicability of the Act and opted to continue the existing tax rate (i.e. 34.944%) for the quarter/Half Year ended September 30, 2020.
• Non-Performing Assets Provisioning Coverage Ratio (including floating provision) is 85.35% as on September 30, 2020.
• The Bank has sold PSLC (Priority Sector lending Certificates) of Rs.270000 Lakh during the current quarter under the category Small and Marginal Farmer. The Bank had purchased PSLC of Rs.400000. Lakh during the quarter ended June 2020.
• . Number of Investors' complaints pending at the beginning of the quarter was NIL. The Bank has received 89 Investors' complaints during the quarter ended September 30, 2020. All complaints have been disposed of during the quarter. There are NIL pending Investors' complaints at the end of the quarter.
• . A penalty of Rs.12.62 lakh has been imposed on the Bank by Reserve Bank of India for the quarter ended September 30, 2020 involving 27 instances of non-compliance with guidelines related to Currency Chest and remittances.
• Notes on Segment Reporting
  • As per the guidelines of the RBI on compliance with the Accounting Standards, the parent Bank has adopted “Treasury Operations”, “Wholesale”, “Retail” and “Other Banking Operations”, as primary business segments and “Domestic” and “International” as secondary / geographic segments for the purpose of compliance with Accounting Standard 17 on Segment Reporting issued by Institute of Chartered Accountants of India (ICAI).
  • Segment revenue represents revenue from external customers.
  • Capital employed for each segment has been allocated proportionate to the assets of the respective segment.
• The figures of the previous period have been regrouped / rearranged, wherever necessary, to conform to the current period classifications.

CFS SEBI Formate

CFS segment

Liquidity Coverage Ratio (LCR) Disclosure - September 2020

ALM CELL- Global Mid Office
RISK MGMT DEPT, MUMBAI
Date:11.11.2020

CFS NOTES SEBI

Consolidate SEBI Notes Sept 2020

• The above consolidated financial results of Bank of Baroda (hereinafter referred as “Bank”) including Subsidiaries (hereinafter referred as “Group”), Joint Ventures and Associates have been recommended by the Audit Committee of Board and approved at the meeting of the Board of Directors held on October 29, 2020. The same has been subjected to limited review by Statutory Central Auditors of the Bank.
• The Group has continued to follow the same accounting policies in preparation of financial statement for the quarter/half year ended September 30, 2020 as followed in the previous financial year ended March 31, 2020.
• The figures for the quarter ended September 30, 2020 are the balancing figures between reviewed figures in respect of the half year end September 30, 2020 and the published year to date figures up to June 30, 2020.
• In terms of Reserve Bank of India (RBI) guidelines Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel- III framework are being made available on our website “www.bankofbaroda.com''. These disclosures have not been subjected to review/ audit by Statutory Central Auditors of the Bank.
• The above consolidated financial results are prepared in accordance with Accounting Standard 25 on “Interim Financial Reporting”, Accounting Standard 21 on “Accounting for Consolidated Financial Statements”, Accounting Standard 23 on Accounting for “Investment in Associates” and Accounting Standard 27 on “Financial Reporting of Interest in Joint Venture”.
• The Consolidated Financial Results comprises the financial results of 7 Domestic Subsidiaries, 8 Overseas Subsidiaries, 4 Associates and 3 Joint Ventures as under :-

  A. Subsidiaries
  i	The Nainital Bank Limited	Domestic	Banking
  ii	BOB Financial Solutions Limited	Domestic	Non-Banking
  iii	BOB Capital Markets Limited	Domestic	Non-Banking
  iv	Baroda Global Shared Services Limited	Domestic	Non-Banking
  v	Baroda Sun Technologies Limited	Domestic	Non-Banking
  vi	Baroda Asset Management India Limited (Formerly known as Baroda Pioneer Asset Management Co. Limited)	Domestic	Non-Banking
  vii	Baroda Trustee India Private Limited (Formerly known as Baroda Pioneer Trustee Company Private Limited)	Domestic	Non-Banking
  viii	Bank of Baroda (Uganda) Limited (consolidated)	Overseas	Banking
  	Baroda Capital Markets (Uganda) Limited (Subsidiary of Baroda (Uganda) Limited.	Overseas	Banking
  ix	Bank of Baroda (Kenya) Limited	Overseas	Banking
  x	Bank of Baroda (Botswana) Limited	Overseas	Banking
  xi	Bank of Baroda (New Zealand) Limited	Overseas	Banking
  xii	Bank of Baroda (Guyana) Inc.	Overseas	Banking
  xiii	Bank of Baroda (UK) Limited	Overseas	Banking
  xiv	Bank of Baroda (Tanzania) Limited	Overseas	Banking
  xv	Bank of Baroda (Trinidad and Tobago) Ltd	Overseas	Banking
  B. Joint Ventures
  i	India Infradebt Limited	Domestic
  ii	India First Life Insurance Company Limited	Domestic
  iii	India International Bank (Malaysia) Bhd	Overseas
  C.  Associates
  i	Baroda U.P. Bank, Gorakhpur	Domestic
  ii	Baroda Rajasthan Kshetriya Gramin Bank	Domestic
  iii	Baroda Gujarat Gramin Bank	Domestic
  iv	Indo Zambia Bank Limited	Overseas

• The COVID-19 outbreak was declared a global pandemic by the World Health Organization on      March 11, 2020 and affected world economy as well as Indian economy. On account of continuous volatility in financial market, the Bank has considered internal and external sources of information including economic forecasts and industry reports up to the date of approval of financial results in determining the impact on various elements of its financial statements including recoverability of advances & provision thereon, investment valuation, other assets and liabilities of the Bank. Given the uncertainty because of COVID-19 pandemic, the Bank is continuously monitoring any material change in future economic condition which may impact the Bank’s operations and its financial results depending on the developments which may differ from that estimated as at the date of approval of these financial results.
  
  RBI has announced measures under Regulatory Package for COVID-19 vide its circulars dated March 27, 2020, April 17, 2020, May 23, 2020 and August 6, 2020.  In accordance with RBI Guidelines, the Bank is required to make provision not less than 10% of the outstanding advances in respect of borrower account where asset classification benefit has been granted. However, the Bank had made provision @20% in March 31, 2020 while w.e.f. April 1, 2020 provision @10% is made wherever said benefit is extended to the borrowers.  Details of relief extended in terms of said circular are as follows:

  S.No	Particulars	Amount (In Rs lakh)
  1.	Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended as on  September 30, 2020	8593994
  2.	Respective amount, where asset classification benefit is extended as on  September 30, 2020	1406388
  3. a)	Provision made during the Q4 FY 2020	81275
  3. b)	Provision made during the Q1 FY 2021 (Reversal of Rs.6907 lakh done in Q1 FY2021 out of provision made during Q4 FY2020 on account of slippage	106739
  4.	Provision adjusted during the Half year ended September 30, 2020 against slippage/account closure/change in balance	12785
  5.	Residual Provision held as on September 30, 2020	175229

• 10. In its Interim Order dated September 3, 2020, the Hon’ble Supreme Court of India (SC), In a public interest litigation (Gajendra Sharma vs Union Of India & Anr), has directed that accounts which were not declared as NPA till August 31, 2020 shall not be declared as NPA till further orders. Based on the said interim order, the Bank has not classified any account as NPA, which was not NPA as of August 31, 2020.
  
  Pending disposal of the case in Hon’ble SC, the Bank as a matter of prudence has made a contingent provision of Rs.19520 Lakh in respect of such accounts that were not classified as NPA. Further, In respect of above accounts, interest income aggregating Rs. 9792 Lakh has been reckoned in operating profit and as prudent measure an equal amount has been made as additional provision against those Assets. Total additional provision as on 30.09.2020 is Rs. 29312 lakh. If the Bank would have classified the said borrower accounts as NPA, the Gross and Net NPA ratio would have been 9.33% and 2.67% respectively.
• As per the RBI Circular No. DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019, RBI circular No DOR. No BP. BC. 34/21.04.048/2019-20 dated 11.02.2020, RBI circular No DOR. No BP. BC/4/21.04.048/2020-21 dated 06.08.2020, 64698 MSME borrower accounts were restructured amounting to Rs.320523 Lakh as on September 30, 2020.
• As per the Reserve Bank of India (RBI) circular no. RBI/2015-16/376 DBR No. BP.BC.92/21.04.048/2015-16 dated April 18, 2016 the Bank has opted to provide the liability for frauds over a period of four quarters. Accordingly, the carry forward provision as on September 30, 2020 is Rs.101378 lakh which is to be amortised in the subsequent quarters by the Bank.
• Government of India has inserted section 115BAA in the Income Tax Act 1961 vide the Taxation Laws (Amendment) Ordinance 2019 dated September 20, 2019, which provides a non-reversible option to domestic companies to pay corporate tax at reduced rate effective from April 01, 2019 subject to certain conditions. The parent Bank has assessed the applicability of the act and opted to continue the existing tax rate i.e.34.944% for the quarter/Half year ended September 30, 2020.
• Pursuant to the proposed bipartite agreement on wage revision (due with effect from November 01, 2017), Group holds provision of sum of Rs.242100 lakh as of September 30, 2020. During the quarter, Group has made provision of Rs.20297 lakh on wage revision.
• Bank of Baroda’s (BOB) wholly owned non –functional Subsidiary at UK Viz. BOB (UK) Ltd. has been dissolve at Company House, UK with effect from September 22, 2020.
• Notes on Segment Reporting
  • As per the guidelines of the RBI on compliance with the Accounting Standards, the parent Bank has adopted “Treasury Operations”, “Wholesale”, “Retail” and “Other Banking Operations”, as primary business segments and “Domestic” and “International” as secondary / geographic segments for the purpose of compliance with Accounting Standard 17 on Segment Reporting issued by Institute of Chartered Accountants of India (ICAI).
  • Segment revenue represents revenue from external customers.
  • Capital employed for each segment has been allocated proportionate to the assets of the respective segment.
• The figures of the previous period have been regrouped/rearranged, wherever necessary, to confirm to the current period classification.

Financial Result Q1 2020-21

Standalone- SEBI

Standalone Segment

Standalone SEBI Notes June 20

1. The above financial results have been recommended by the Audit Committee of Board and approved at the meeting of the Board of Directors held on August 10, 2020. The same has been subjected to limited review by Statutory Central Auditors of the Bank.

2. The Bank has continued to follow the same accounting policies in preparation of financial results for the quarter ended June 30, 2020 as followed in the previous financial year ended March 31, 2020.

3. The comparative figures for quarter ended March 31, 2020 are the balancing figures between audited figures in respect of the financial year 2019 -20 and the published year to date figures up to December 31, 2019.

4. Reserve Bank of India (RBI) Circular DBOD.NO.BP.BC.1/21.06.201/2015-16 dated July 01, 2015 on Basel III Capital Regulations read together with RBI circular no.DBR.NO.BP.BC.80/21.06.201/2014- 15 dated March 31, 2015 on Prudential Guidelines on Capital Adequacy and Liquidity Standards Amendments requires Banks to make applicable Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel- III framework. These details are being made available on our website “www.bankofbaroda.com''. These disclosures have not been subjected to review/ audit by Statutory Central Auditors of the Bank.

5. During the current quarter, the Bank has redeemed Basel II Upper Tier II Bond Series XIII and Basel II Upper Tier II Bond Series XIV of Rs.500,00 Lakh each by exercising call option.

6. As a consistent practice, the Bank has continued to make a provision of 20% on the Secured Sub- standard Advances as against the regulatory minimum requirement of 15%. In addition to the above, the Bank has also continued to maintain provision on non-fund based facilities of NPA borrowers, by applying 50% credit conversion factor (CCF), based on the asset class of the fund-based facility of the borrower. The Bank also continues to make 100% provision on certain classes of non- performing retail advances.

7. Other income of the Bank includes brokerage, commission, fees, income from foreign exchange fluctuation, profit / loss on sale of investments, recovery from written off accounts etc.

8. As per RBI Circular no. DBR.No.BP.15199/21.04.048/2016-17 and DBR.No.BP.1906/21.04.048/20 17-18 dated June 23, 2017 and August 28, 2017 respectively, for the accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC), the Bank is holding total provision of Rs.11016,57 lakh (100% of total outstanding) as on June 30, 2020 (Rs.10853,71 lakh i.e. 98.73% of total outstanding as on March 31, 2020).

9. The Bank has estimated the liability for Unhedged Foreign Currency in terms of RBI circular DBOD.No.BP.BC.85/21.06.200/2013-14 dated January 15, 2014 and is holding a provision of Rs.149,37 lakh as on June 30, 2020 (Rs.155,33 lakh as on March 31, 2020).

10. The COVID-19 outbreak was declared a global pandemic by the World Health Organization on March 21, 2020 and affected world economy as well as Indian economy. On account of continuous volatility in financial market, the Bank has considered internal and external sources of information including economic forecasts and industry reports up to the date of approval of financial results in determining the impact on various elements of its financial statements including recoverability of

advances & provision thereon, investment valuation, other assets and liabilities of the Bank. Given the uncertainty because of COVID-19 pandemic, the Bank is continuously monitoring any material change in future economic condition which may impact the Bank’s operations and its financial results depending on the developments which may differ from that estimated as at the date of approval of these financial results.

As per the regulatory package dated March 27, 2020 the Bank has been permitted moratorium of three months on all term loan instalments falling due between March 1, 2020 and May 31, 2020. The Bank has deferred the recovery of interest on working capital facilities sanctioned in the form of cash credit / overdraft CC/OD accounts from March 1, 2020 to June 30, 2020. The moratorium period was further extended by till August 31, 2020 vide notification dated May 23, 2020.

RBI has announced measures under Regulatory Package for Covid 19 vide its circulars dated March 27, 2020, April 17, 2020 and May 23, 2020, to mitigate the burden of debt servicing brought about by disruptions on account of Covid 19 pandemic and to ensure the continuity of viable business. The measures, inter alia, including rescheduling of payments of term loan and working capital facilities, easing of working capital financing, classification as Special Mention Account (SMA) and Non- Performing assets (NPA) etc. In accordance with RBI Guidelines, the Bank is required to make provision not less than 10% of the outstanding advances in respect of borrower account where asset classification benefit has been granted. However, the Bank had made provision @20% in March 31, 2020 while w.e.f. April 1, 2020 provision @10% is made wherever said benefit is extended to the borrowers. Details of relief extended in terms of said circular are as follows:

11. RBI vide their circular no. RBI/2018-19/203 DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019 on Prudential Framework for Resolution of Stressed Assets issued guidelines for implementation of Resolution Plan, also containing requirements of additional provisions as per para 17 of this RBI circular. The outstanding in such cases as on June 30, 2020 is Rs.10376,06 lakh and in compliance the above RBI circular, the Bank has made additional provision of Rs.1415,42 lakh during the quarter ended June 30, 2020 and holds total provision of Rs.3609,17 lakh as on June 30, 2020.

12. As per the RBI Circular No. DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019 on ‘Restructuring of Advances - Micro, Small and Medium Enterprises (MSME) Sector’ (One Time Restructuring), 53518 MSME borrower accounts were restructured amounting to Rs.2368,99 Lakh as on June 30, 2020 ( 37261 MSME borrower accounts amounting to Rs.1734,00 lakh as on March 31, 2020).

13. As per the Reserve Bank of India (RBI) circular no. RBI/2015-16/376 DBR No. BP.BC.92/21.04.048/2015-16 dated April 18, 2016 the Bank has opted to provide the liability for

frauds over a period of four quarters. Accordingly, the carry forward provision as on June 30, 2020 is Rs.1261,45 lakh (Rs.349,51 lakh as on March 31, 2020) which is to be amortised in the subsequent quarters by the Bank.

14. Pursuant to the proposed bipartite agreement on wage revision (due with effect from November 01, 2017), Bank held provision of Rs.1921,73 lakh as on March 31, 2020. An MOU has been entered between Indian Bank of Association and Bank’s Officers & workman Association on July 22, 2020 regarding revision of wage arrears. Pending conclusion of the said agreement, as a matter of prudence, Bank has made additional provision of Rs.278,27 lakh during quarter ended June 30, 2020 (Rs.198,80 lakh in quarter ended March 31, 2020). The Bank is holding aggregate provision of Rs.2200,00 lakh as on June 30, 2020 for wage revision.

15. Government of India has inserted section 115BAA in the Income Tax Act 1961 (“Act”) vide the Taxation Laws (Amendment) Ordinance 2019 dated September 20, 2019, which provides a non- reversible option to domestic companies to pay corporate tax at reduced rate effective from April 01, 2019 subject to certain conditions. The Bank has assessed the applicability of the Act and opted to continue the existing tax rate (i.e. 34.944%) for the quarter ended June 30, 2020.

16. Non-Performing Assets Provisioning Coverage Ratio (including floating provision) is 83.30% as on June 30, 2020 (81.33% as on March 31, 2020).

17. The Bank has purchased PSLC (Priority Sector lending Certificates) of Rs.4000,00 lakh during the current quarter under the category Small and Marginal Farmer.

18. Number of Investors' complaints pending at the beginning of the quarter was NIL. The Bank has received 32 Investors' complaints during the quarter ended June 30, 2020. All complaints have been disposed of during the quarter. There are NIL pending Investors' complaints at the end of the quarter.

19. A penalty of Rs.22.46 lakhs has been imposed on the Bank by Reserve Bank of India for the quarter ended June 30, 2020.

20. Bank’s wholly owned subsidiary Bank of Baroda (Ghana) Ltd. has surrendered its Banking License to the Host Country Regulator at Ghana viz. Bank of Ghana and the Registrar of the Company, Ghana vide letter dated 11th June 2020, has informed that pursuant to Section 260 (1) of the Companies Act (Act 179), the name of Bank of Baroda (Ghana) Ltd. has been struck off from the register of companies and the said company is dissolved.

21. Bank of Baroda (BOB) has a locally incorporated Overseas Joint Venture (JV) with Indian Overseas Bank (IOB) and erstwhile Andhra Bank (AB) now Union Bank of India (UBI) in Malaysia viz. India International Bank (Malaysia) Berhad (IIBMB), in which BOB has 40% shareholding, while IOB and erstwhile AB now UBI have 35% and 25% shareholding respectively. In light of discussion on business performance and projections of IIBMB, the Board of the Bank has accorded approval either for sale of its entire stake (BOB 40%) or closure of operations of IIBMB in consultation with other JV partners.

22. Notes on Segment Reporting
a. As per the guidelines of the RBI on compliance with the Accounting Standards, the bank has adopted “Treasury Operations”, “Wholesale”, “Retail” and “Other Banking Operations”, as primary business segments and “Domestic” and “International” as secondary / geographic segments for the purpose of compliance with Accounting Standard 17 on Segment Reporting issued by Institute of Chartered Accountants of India (ICAI).
b. Segment revenue represents revenue from external customers.
c. Capital employed for each segment has been allocated proportionate to the assets of the respective segment.

23. The figures of the previous period have been regrouped / rearranged, wherever necessary, to conform to the current period classifications.

Place: Mumbai
Date: August 10th, 2020

Consolidate SEBI

Consolidate Segment

Consolidate SEBI Notes

Notes forming part of the Reviewed Consolidated Financial Results for the Quarter Ended June 30, 2020

1. The above consolidated financial results of Bank of Baroda including Subsidiaries (hereinafter referred as “group”), joint Ventures and Associates have been recommended by the Audit Committee of Board and approved at the meeting of the Board of Directors held on August 10, 2020. The same has been subjected to limited review by Statutory Central Auditors of the Bank.

2. The Bank has continued to follow the same accounting policies in preparation of financial statement for the quarter ended June 30, 2020 as followed in the previous financial year ended March 31, 2020.

3. The comparative figures for quarter ended March 31, 2020 are the balancing figures between audited figures in respect of the financial year 2019 -20 and the published year to date figures up to December 31, 2019.

4. RBI Circular DBOD.NO.BP.BC.1/21.06.201/2015-16 dated July 01, 2015 on Basel III Capital Regulations read together with RBI circular no DBR.NO.BP.BC. 80/21.06.201/2014-15 dated March 31, 2015 on Prudential Guidelines on Capital Adequacy and Liquidity Standards Amendments requires Banks to make applicable Pillar 3 disclosures including leverage ratio and liquidity coverage ratio under the Basel- III framework. These details are being made available on our website “www.bankofbaroda.com''. These disclosures have not been subjected to audit or review by the Statutory Central Auditors of the Bank.

5. The above consolidated financial results are prepared in accordance with Accounting Standard 25 on “Interim Financial Reporting”, Accounting Standard 21 on “Accounting for Consolidated Financial Statements”, Accounting Standard 23 on Accounting for “Investment in Associates” and Accounting Standard 27 on “Financial Reporting of Interest in Joint Venture” in Consolidated Financial Statements.

6. The Consolidated Financial Results comprises the financial results of 7 Domestic Subsidiaries, 10 Overseas Subsidiaries, 4 Associates and 3 Joint Ventures as under :-

7. The COVID-19 outbreak was declared a global pandemic by the World Health Organization on March 21, 2020 and affected world economy as well as Indian economy. On account of continuous volatility in financial market, the Bank has considered internal and external sources of information including economic forecasts and industry reports up to the date of approval of financial results in determining the impact on various elements of its financial statements including recoverability of advances & provision thereon, investment valuation, other assets and liabilities of the Bank. Given the uncertainty because of COVID-19 pandemic, the Bank is continuously monitoring any material change in future economic condition which may impact the Bank’s operations and its financial results depending on the developments which may differ from that estimated as at the date of approval of these financial results.

As per the regulatory package dated March 27, 2020 the Bank has been permitted moratorium of three months on all term loan instalments falling due between March 1, 2020 and May 31, 2020. The Bank has deferred the recovery of interest on working capital facilities sanctioned in the form of cash credit / overdraft CC/OD accounts from March 1, 2020 to June 30, 2020. The moratorium period was further extended by till August 31, 2020 vide notification dated May 23, 2020.

RBI has announced measures under Regulatory Package for Covid 19 vide its circulars dated March 27, 2020, April 17, 2020 and May 23, 2020, to mitigate the burden of debt servicing brought about by disruptions on account of Covid 19 pandemic and to ensure the continuity of viable business. The measures, inter alia, including rescheduling of payments of term loan and working capital facilities, easing of working capital financing, classification as Special Mention Account (SMA) and Non- Performing assets (NPA) etc. In accordance with RBI Guidelines, the Bank is required to make provision not less than 10% of the outstanding advances in respect of borrower account where asset classification benefit has been granted. However, the Bank had made provision @20% in March 31, 2020 while w.e.f. April 1, 2020 provision @10% is made wherever said benefit is extended to the borrowers.

Details of relief extended in terms of said circular are as follows:

8. As per the RBI Circular No. DBR.No.BP.BC.18/21.04.048/2018-19 dated January 1, 2019 on ‘Restructuring of Advances - Micro, Small and Medium Enterprises (MSME) Sector’ (One Time Restructuring), 53518 MSME borrower accounts were restructured amounting to Rs.2368,99 Lakh as on June 30, 2020 ( 37261 MSME borrower accounts amounting to Rs.1734,00 lakh as on March 31, 2020).

9. As per the Reserve Bank of India (RBI) circular no. RBI/2015-16/376 DBR No. BP.BC.92/21.04.048/2015-16 dated April 18, 2016 the Bank has opted to provide the liability for frauds over a period of four quarters. Accordingly, the carry forward provision as on June 30, 2020 is Rs.1261,45 lakh (Rs.349,51 Lakh as on March 31, 2020) which is to be amortised in the subsequent quarters by the Bank

10. Government of India has inserted section 115BAA in the Income Tax Act 1961 vide the Taxation Laws (Amendment) Ordinance 2019 dated September 20, 2019, which provides a non-reversible option to domestic companies to pay corporate tax at reduced rate effective from April 01, 2019 subject to certain conditions. The parent Bank has assessed the applicability of the act and opted to continue the existing tax rate i.e.34.944% for the quarter ended June 30, 2020.

11. The Bank’s wholly owned subsidiary Bank of Baroda (Ghana) Ltd. has surrendered its Banking License to the Host Country Regulator at Ghana viz. Bank of Ghana and the Registrar of the Company, Ghana vide letter dated 11th June 2020, has informed that pursuant to Section 260 (1) of the Companies Act (Act 179), the name of Bank of Baroda (Ghana) Ltd. has been struck off from the register of companies and the said company is dissolved.

12. Bank of Baroda (BOB) has a locally incorporated Overseas Joint Venture (JV) with Indian Overseas Bank (IOB) and erstwhile Andhra Bank (AB) now Union Bank of India (UBI) in Malaysia viz. India International Bank (Malaysia) Berhad (IIBMB), in which BOB has 40% shareholding, while IOB and erstwhile AB now UBI have 35% and 25% shareholding respectively. In light of discussion on business performance and projections of IIBMB, the Board of the Bank has accorded approval either for sale of its entire stake (BOB 40%) or closure of operations of IIBMB in consultation with other JV partners.

13. Ministry of Finance vide Gazette notification no. 3837 dated 26th Nov. 2019 amalgamated Baroda Uttar Pradesh Gramin Bank, Kashi Gomti Samyut Gramin Bank and Purvanchal Bank (Transferor RRB) into a single Regional Rural Bank i.e. Baroda U.P. Bank (Transferee RRB) which shall come into effect on and from the first day of April, 2020. Accordingly the Bank has made additional investment of Rs.2916 Lakh for acquisition of stake of merged Bank i.e. Baroda UP Bank. As on June 30, 2020 the additional shares are yet to be allotted.

14. Notes on Segment Reporting
a. As per the guidelines of the RBI on compliance with the Accounting Standards, the parent Bank has adopted “Treasury Operations”, “Wholesale”, “Retail” and “Other Banking Operations”, as primary business segments and “Domestic” and “International” as secondary
/ geographic segments for the purpose of compliance with Accounting Standard 17 on Segment Reporting issued by Institute of Chartered Accountants of India (ICAI). b. Segment revenue represents revenue from external customers.
c. Capital employed for each segment has been allocated proportionate to the assets of the respective segment.

15. The figures of the previous period have been regrouped/rearranged, wherever necessary, to confirm to the current period classification.

Place: Mumbai
Date: August 10th, 2020

LCR-Disclosure-Q1 FY 2020-21 click here

Statement of Assets & Liabilities is as under