Financial Report 2017-18

SEBI Format

(` in lacs)

Notes forming part of the audited financial results for the Quarter/Year Ended March 31, 2018.

• The above financial results have been reviewed by the Audit Committee of the Board and approved by the Board of Directors in their respective meetings held on May 25, 2018. The same have been subjected to an audit by the Statutory Central Auditors of the Bank.
• The above results for the quarter/year ended March 31, 2018 have been prepared, following the same accounting policies as those followed in the annual financial statements for the year ended March 31, 2017, except as mentioned in note (7) below.
• The figures for the last quarter are the balancing figures between the audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.
• The financial results for the quarter/full year ended March 31, 2018 have been arrived at after considering provision for Non-Performing Assets, Standard Assets, Standard Derivative Exposures, Restructured Assets and depreciation / Provision for Investments on the basis of prudential norms and specific guidelines issued by the RBI. As a consistent practice, the Bank has made a provision of 20% on the Secured Sub-standard Advances as against the regulatory requirement of 15%. In addition to the above, provision is made on non-fund based facilities of NPA borrowers by applying 50% credit conversion factor (CCF). The provision is based on the asset class of the fund based facility of the borrower. Also 100% provision is made on certain class of non-performing retail advances.
• 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. 80/21.06.201/2015-16 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 by the auditors.
• In compliance with the RBI circular No.DBR.No.BP.BC.64/21.04.048/2016-17 dated April 18, 2017, the bank has made an additional provision of ` 667 Lakhs for the quarter ended March 31, 2018 and `142,34 Lakhs for the year ended March 31, 2018, in respect of standard advances to stressed sectors of the economy.
• Due to change in the method of appropriation of recovery in NPA accounts, where recoveries are now being adjusted against charges, interest reversed, unapplied interest and lastly against principal as against the earlier method of adjusting recoveries against principal, expenses and unapplied interest, additional income of Rs.91571 lakhs (net of tax and provisions of Rs.66421 lakhs) for the quarter and Rs.149671 lakhs (net of tax and provisions of Rs.108565 lakhs) for the year ended March 31, 2018 has been recognised.
• During the year, on March 27, 2018, the Bank has allotted 34,13,56,534 shares of ` 2/- each fully paid up at a premium of ` 155.46 per share to the Government of India, as approved by the shareholders in the Extra-Ordinary General Meeting held on March 13, 2018 in accordance with SEBI (ICDR) Regulations, 2009 on preferential basis. Total amount received by the Bank on this account is ` 5,375,00 lakhs.
• As per RBI directions for initiating Insolvency Process - Provisioning Norms vide letter No. DBR.No.BO.15199/21.04.048/2016-17 dated June 23, 2017 in respect of 10 borrowal accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC), the Bank was required to make additional provision. Similarly, as per RBI direction vide letter No. DR.No.BP.1906/21.04.049/2017-18 dated August 28, 2017 in respect of 18 borrowal accounts covered under the process of IBC, the Bank was required to make additional provision. Further, as per RBI communication No. DBR.No.BP. 8756/21.04/2017-18 dated April 2, 2018 with respect to spreading the provisions covered in Ist and IInd list under the provisions of IBC, the Bank has availed the option of dispensation available, and as a result the additional provision of Rs.309,37 lakhs has been made as on March 31, 2018 (instead of Rs.829,23 lakhs).
• Pursuant to the Accounting Standard-10 (revised) on Property Plant & Equipment an amount of Rs.35898 lakhs related to depreciation of revalued portion of fixed assets has been transferred from the Revaluation Reserve to Revenue Reserve
  • LCR Qualititive Disclosure – March 2018 (55 KB)
  • LCR Quantitive Disclosure – March 2018 (29 KB)
• Statement of Assets & Liabilities is as under

(` In Lakhs)

• RBI vide letter RBI/2017-18/131: DBR. No.BP.BC.101/21.04.048/2017-18 dated February 12, 2018 issued a revised framework on Resolution of Stressed Assets and withdrew the existing guidelines/instructions on resolution of stresses assets such as framework for revitalizing Distressed Assets, Corporate Debt Restructuring Scheme, Flexible Structuring of Existing Long Term Project Loans, Strategic Debt Restructuring Scheme (SDR), Change in Ownership outside SDR, and Scheme for Sustainable Structuring of Stressed Assets (S4A), etc. with immediate effect. Accordingly, the Joint Lenders Forum (JLF) as an institutional mechanism for resolution of stressed accounts also stands discontinued. Under the revised framework, the stand-still benefits for accounts where any of these schemes had been invoked but not yet implemented were revoked and accordingly these accounts have been classified as per the extant RBI prudential norms on Income Recognition and Asset Classification.
• RBI vide letter DBR No. BP 9730/21.04.018/2017-18 dated 27.04.2018 permitted banks to spread the additional liability on account of the enhancement in gratuity limits over four quarters beginning with the quarter ended March 31, 2018. The Bank has availed the relaxation permitted and has provided an amount of `9,700 lakhs being one fourth of the liability during the quarter ended March 31, 2018. The balance of `29,100 lakhs has been deferred to the subsequent three quarters.
• In compliance with the Risk Assessment Report (RAR) of RBI for the year 2016-17:

  Reclassification of standard loans as Non-Performing and reclassification of NPAs amounting to ` 42,718,71 lakhs and additional provision on account of short provisions on existing NPAs amounting to ` 429,95 lakhs have been made. Details are as below:

  Sr. No.	Particulars	Amount (` In Lakhs)
  1.	Gross NPAs as on March 31,2017 as reported by the bank	42,718,71
  2.	Gross NPAs as on March 31,2017 as assessed by RBI	45,637,41
  3.	Divergence in Gross NPAs (2-1)	2,918,70
  4.	Net NPAs as on March 31,2017 as reported by the bank	18,080,18
  5.	Net NPAs as on March 31,2017 as assessed by RBI	20,341,38
  6.	Divergence in Net NPAs (5-4)	2,261,20
  7.	Provision for NPAs as on March 31,2017 as reported by the bank	23,183,67
  8	Provision for NPAs as on March 31,2017 as assessed by RBI	23,841,17
  9	Divergence in Net NPAs (8-7)	657,50
  10.	Reported Net profit after Tax (PAT) for the year ended March 31, 2017	1383,13
  11.	Adjusted (notional) Net Profit after Tax (PAT) for the year ended March 31, 2017 after taking into account the divergence in provisioning	953,18

  * The net impact of the aforementioned retrospective slippages due to divergences noted by RBI has been duly rectified in the results for the year ended March 31, 2018

  Overstatement of income/other assets due to improper debt-asset swap amounting to ` 8870 lakhs has been fully provided for.

• Provisioning Coverage Ratio is 67.21% as on March 31, 2018. (March 31, 2017: 66.83%)
• Details of Investor's complaints for the quarter ended March 31, 2018: Pending at Beginning: 0; Received: 165; Disposed off: 165; Closing: 0.
• As a part of strategic initiatives for rationalization of International Operations, which is also in consonance with the Government of India directives, the Bank has decided to exit from certain geographies. During the year 2017-18, the Bank has initiated closure of its operations in the Kingdom of Bahrain, Bahamas and Republic of South Africa. The closure of these territories is at an advance stage. In the opinion of the Management, adequate provisions have been made in the books and the amounts stated in the financial statements are not less than at their realizable values. The impact of closure of operations in these territories on the business of the Bank is not significant.
• Notes on Segment Reporting
  • As per the guidelines of the RBI on compliance with 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 AS-17 on Segment Reporting issued by the 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.
• Notes on Consolidated Financial Statement (CFS)
  • The above financial results have been reviewed by the Audit Committee of the Board and approved by the Board of Directors in their respective meetings held on May 25, 2018. The same have been subjected to an audit by the Statutory Central Auditors of the Bank.
  • The CFS are prepared in accordance with AS-21 “Accounting for Consolidated Financial Statements” AS-23 “Accounting for Investments in Associates” and AS-27 “ Financial Reporting of Interest in Joint Venture” in the CFS.
• The figures of the previous period have been regrouped/rearranged, wherever necessary, so as to make them comparable with those of the current period.

Place : Mumbai
Date : May 25, 2018

Segment reporting for the Quarter / Year Ended 31st March 2018

Part A-Business Segments

(` in lacs)

Part- B : Geographic Segments

SEBI Format

Notes forming part of the un-audited financial results for the Quarter/ Nine Months Ended 31st December, 2017

• The above financial results have been reviewed by the Audit Committee of Board and approved by the Board of Directors in their meetings held on 9th Feb, 2018. The same have been subjected to a Limited Review by the Statutory Central Auditors of the Bank, in line with the guidelines issued by the Reserve Bank of India (RBI) and as per the requirement of Listing Agreement with Stock Exchanges in India.
• The above results for the quarter / nine months ended 31st Dec 2017 have been prepared, following the same accounting policies as those followed in the annual financial statements for the year ended 31st March, 2017, except as mentioned in note (7) below.
• The financial results for the quarter / nine months ended 31st Dec 2017 have been arrived at after considering provision for Non-performing Assets, Standard Assets, Restructured Assets and depreciation / provision for Investments on the basis of prudential norms and specific guidelines issued by the RBI. The Bank has made provision @ 20% on the Secured Sub-standard Advances as against the Regulatory requirement of 15%.
• In compliance with the RBI Circular DBR.No.BP.34/21.04.132/2016-17 dated 10th November, 2016, “Scheme for Stressed Assets- Revisions”, in respect of Standard Facilities under Strategic Debt Restructuring (SDR) and Scheme for Sustainable Structuring of Stressed Assets (S4A), the Bank has during the Quarter ended 31st Dec, 2017 reversed an amount of ` 307.89 Crores being unrealized interest in such accounts.
• In terms of RBI Circular DBOD.BP.BC.2/21.06.201/2013-14 dated 01.07.2013, Banks are required to make Pillar 3 disclosure under Basel- III Capital Regulations. These details are being made available on our website "www.bankofbaroda.com". These disclosures have not been subjected to Review by the auditors.
• During the quarter, Bank has paid / provided an amount of ` 5.45 Crs and ` 42.26 Lacs towards penalty imposed in South Africa and Seychelles branches respectively by their local Regulators.
• Non Performing Loan Provisioning Coverage Ratio is 68.03 % as on 31st Dec 2017.
• In compliance with the RBI circular No.DBR.No.BP.BC.64/21.04.048/2016-17 dated 18.04.2017, bank has made an additional provision of `6.57 Crs for the quarter ended Dec 2017 ( `135.67 Crs for the nine months ended 31st December 2017) in respect of standard advances to stressed sectors of the economy
• Due to change in the method of appropriation of recovery in NPA accounts, where recoveries are now being adjusted against interest reversed, unapplied interest and lastly in principal as against the earlier method of adjusting recoveries against interest reversal, principal and then unapplied interest. Additional income of `67 crs ( net of tax and provisions) for the quarter and `160 crs (net of tax and provisions) for the nine months ended 31 st December 2017 has been recognised.
• In compliance with RBI directives, during the quarter ended 31st Dec 2017, bank has made a provision of `145 crs (During the year `308 crs) under Insolvency and Bankruptcy code (IBC). Remaining `857 crs will be provided in next quarter as permitted under RBI directions.
• Details of Investor's complaints for the quarter ended 30.09.2017: Pending at Beginning: 0; Received: 152; Disposed off: 152; Closing:0
• In terms of Income Computation and Disclosure Standards (ICDS) notified by CBDT which are effective from 01.04.2016 and the clarification issued by CBDT through FAQs, the FCTR balance as on 01.04.2016 pertaining to Exchange difference on monetary items of non integral operations is required to be recognised in the income computation of the previous year relevant to AY 2017-18 to the extent not recognised earlier. The balance in FCTR as on 01.04.2016 amounts to `2238.55 Crs. Based on legal opinion, bank has not considered the opening balance of FCTR for computing taxable income and consequently tax amounting to `774.71 Crs has not been provided for. Further this will not impact the profit for the year since deferred tax assets has not been recognised to that extent.
• LCR Disclosure - Q3 2017-18 (632 KB)
• Statement of Assets & Liabilities is as under:-

• The figures of previous period have been regrouped / rearranged, wherever necessary, so as to make them comparable with those of the current period.

Segment reporting for the Quarter / Nine Months Ended 31st December, 2017

Part A : Business Segments

Part- B : Geographic Segments

Notes on Segment Reporting :

• As per guidelines of the RBI on compliance with 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 AS-17 on Segment Reporting issued by ICAI.
• Segment revenue represents revenue from external customers.
• Capital employed for each segment has been allocated proportionate to the assets of the segment.
• Results, Revenue and Capital Employed of International Operations is included in Other Banking Operations.
• The figures of previous period / year have been regrouped / rearranged wherever necessary so as to make them comparable with those of the current period.

Place : Mumbai
Date : 9th Feb 2018

SEBI Format

Notes forming part of the un-audited financial results for the Quarter/ Half Year Ended 30th September, 2017

• The above financial results have been reviewed by the Audit Committee of Board in their meeting held on 14th Nov, 2017 and approved by the Board of Directors in their meeting held on 14th Nov, 2017. The same have been subjected to Limited Review by the Statutory Central Auditors of the Bank, in line with the guidelines issued by Reserve Bank of India and as per the requirement of listing agreement with Stock Exchanges.
• The above results for the quarter / half year ended 30th Sept 2017 have been prepared, following the same accounting policies as those followed in the annual financial statements for the year ended 31st March, 2017.
• The financial results for the quarter / half year ended 30th Sep 2017 have been arrived at after considering provision for Non-performing Assets, Standard Assets, Restructured Assets and depreciation / provision for Investments on the basis of prudential norms and specific guidelines issued by the RBI. The Bank has made provision @ 20% on the Secured Sub-standard Advances as against the Regulatory requirement of 15%.
• In compliance with the RBI Circular DBR.No.BP.34/21.04.132/2016-17 dated 10th November, 2016, “Scheme for Stressed Assets- Revisions”, in respect of Standard Facilities under Strategic Debt Restructuring (SDR) and Scheme for Sustainable Structuring of Stressed Assets (S4A), the Bank has during the Quarter ended 30th Sep, 2017 reversed an amount of ` 132.72 Crores being unrealized interest in such accounts.
• In terms of RBI Circular DBOD.BP.BC.2/21.06.201/2013-14 dated 01.07.2013, Banks are required to make Pillar 3 disclosure under Basel- III Capital Regulations. These details are being made available on our website "www.bankofbaroda.com". These disclosures have not been subjected to Audit by the auditors.
• During the quarter, Bank has paid / provided an amount of ` 5.45 Crs and ` 42.26 Lacs towards penalty imposed in South Africa and Seychelles branches respectively by their local Regulators.
• Non Performing Loan Provisioning Coverage Ratio is 67.18 % as on 30th Sep 2017.
• In compliance with the RBI circular No.DBR.No.BP.BC.64/21.04.048/2016-17 dated 18.04.2017, during the quarter ended 30.09.2017, bank has made additional provision of `22.06 Crs in respect of standard advances to stressed sectors of the economy.
• Due to change in appropriation of recovery in NPA accounts additional income of `93 crs (net of tax and provisions) has been recognised during the quarter ended 30.09.2017.
• In compliance with RBI directives ( DBR no.BP.15199/21.04.048/2016-17 dated 23.06.2017), during the quarter ended 30.09.2017, bank has made a provision of `162.94 crs under Insolvency and Bankruptcy code (IBC). Remaining `325.89 crs will be provided in next two quarters as permited under RBI directions.
• Details of Investor's complaints for the quarter ended 30.09.2017: Pending at Beginning: 0; Received: 148; Disposed off: 148; Closing:0
• In terms of Income Computation and Disclosure Standards (ICDS) notified by CBDT which are effective from 01.04.2016 and the clarification issued by CBDT through FAQs, the FCTR balance as on 01.04.2016 pertaining to Exchange difference on monetary items of non integral operations is required to be recognised in the income computation of the previous year relevant to AY 2017-18 to the extent not recognised earlier. The balance in FCTR as on 01.04.2016 amounts to `2238.55 Crs. Based on legal opinion, bank has not considered the opening balance of FCTR for computing taxable income and consequently tax amounting to `774.71 Crs has not been provided for. Further this will not impact the profit for the year since deferred tax assets has not been recognised to that extent.
• LCR Disclosure - Q2 2017-18 (92.4 KB)
• Statement of Assets & Liabilities is as under:-

• The figures of previous period have been regrouped / rearranged, wherever necessary, so as to make them comparable with those of the current period.

Segment reporting for the Quarter / Half Year Ended 30th September, 2017

Part A - Business Segments

Part B - Geographic Segments

Notes on Segment Reporting :

• As per guidelines of the RBI on compliance with 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 AS-17 on Segment Reporting issued by ICAI.
• Segment revenue represents revenue from external customers.
• Capital employed for each segment has been allocated proportionate to the assets of the segment.
• Results, Revenue and Capital Employed of International Operations is included in Other Banking Operations.
• The figures of previous period / year have been regrouped / rearranged wherever necessary so as to make them comparable with those of the current period.

Place : Mumbai
Date : 14th Nov 2017

SEBI Format

Notes forming part of the un-audited financial results for the Quarter Ended 30th June, 2017

• The above financial results have been reviewed by the Audit Committee of Board in their meeting held on 11th Aug, 2017 and approved by the Board of Directors in their meeting held on 11th Aug, 2017. The same have been subjected to Limited Review by the Statutory Central Auditors of the Bank, in line with the guidelines issued by Reserve Bank of India and as per the requirement of listing agreement with Stock Exchanges.
• The above results for the quarter ended 30th June 2017 have been prepared, following the same accounting policies as those followed in the annual financial statements for the year ended 31st March, 2017.
• The financial results for the quarter ended 30th June 2017 have been arrived at after considering provision for Non-performing Assets, Standard Assets, Restructured Assets and depreciation / provision for Investments on the basis of prudential norms and specific guidelines issued by the RBI. The Bank has made provision @ 20% on the Secured Sub-standard Advances as against the Regulatory requirement of 15%.
• In compliance with the RBI Circular DBR.No.BP.34/21.04.132/2016-17 dated 10th November, 2016, “Scheme for Stressed Assets- Revisions”, in respect of Standard Facilities under Strategic Debt Restructuring (SDR) and Scheme for Sustainable Structuring of Stressed Assets (S4A), the Bank has during the Quarter ended 30th June, 2017 reversed an amount of ` 172.08 Crores being unrealized interest in such accounts.
• In terms of RBI Circular DBOD.BP.BC.2/21.06.201/2013-14 dated 01.07.2013, Banks are required to make Pillar 3 disclosure under Basel- III Capital Regulations. These details are being made available on our website "www.bankofbaroda.com". These disclosures have not been subjected to Audit by the auditors.
• During the quarter, Bank has paid / provided an amount of ` 5.45 Crs and ` 42.26 Lacs towards penalty imposed in South Africa and Seychelles branches respectively by their local Regulators.
• Non Performing Loan Provisioning Coverage Ratio is 66.28 % as on 30th June 2017.
• In compliance with the RBI circular No.DBR.No.BP.BC.64/21.04.048/2016-17 dated 18.04.2017, bank has made aditional provision of `107.84 Crs in respect of standard advances to stressed sectors of the economy.
• Details of Investor's complaints for the quarter ended 30.06.2017: Pending at Beginning: 0; Received: 153; Disposed off: 153; Closing:0
• In terms of Income Computation and Disclosure Standards (ICDS) notified by CBDT which are effective from 01.04.2016 and the clarification issued by CBDT through FAQs, the FCTR balance as on 01.04.2016 pertaining to Exchange difference on monetary items of non integral operations is required to be recognised in the income computation of the previous year relevant to AY 2017-18 to the extent not recognised earlier. The balance in FCTR as on 01.04.2016 amounts to `2238.55 Crs. Based on legal opinion, bank has not considered the opening balance of FCTR for computing taxable income and consequently tax amounting to `774.71 Crs has not been provided for. Further this will not impact the profit for the year since deferred tax assets has not been recognised to that extent.
• LCR Disclosure - Q1 2017-18 (25 KB)
• Statement of Assets & Liabilities is as under:-

• The figures of previous period have been regrouped / rearranged, wherever necessary, so as to make them comparable with those of the current period.

Segment reporting for the Quarter Ended 30th June, 2017

Part A-Business Segments

Part- B : Geographic Segments

Notes on Segment Reporting :

• As per guidelines of the RBI on compliance with 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 AS-17 on Segment Reporting issued by ICAI.
• Segment revenue represents revenue from external customers.
• Capital employed for each segment has been allocated proportionate to the assets of the segment.
• Results, Revenue and Capital Employed of International Operations is included in Other Banking Operations.
• The figures of previous period / year have been regrouped / rearranged wherever necessary so as to make them comparable with those of the current period.