Financial Report 2018-19

SEBI Format

(in lakhs)

Notes forming part of the un-audited financial results for the Quarter/ Nine Months Ended 31st December 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 January 29, 2019. The same have been subjected to a limited review by the Statutory Central Auditors of the Bank.

The above results for the quarter ended December 31, 2018, have been prepared, following the same accounting policies as those followed in the annual financial statements for the year ended March 31, 2018.

The financial results for the quarter and nine months ended December 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 limited review by the auditors.

As per RBI directions vide Letter No. DBR.No.BO.15199/21.04.048/2016-17 dated June 23, 2017 and Letter No. DR.No.BP.1906/21.04.049/2017-18 dated August 28, 2017, the Bank during the quarter ended December 31, 2018 has reversed ₹ 4777 lakhs (previous corresponding quarter provided for ₹ 657 lakhs) due to release of provisions. The Bank holds a total provision of ₹ 45616 lakhs (previous corresponding period ₹ 13567 lakhs) in respect of 23 borrower accounts under the provisions of Insolvency and Bankruptcy Code (IBC) and said RBI Directions.

RBI circular DBR.No.BP.BC.113/21.04.048/2017-18 dated June 15, 2018 had granted banks an option to spread provisioning for mark to market (MTM) losses on investments held in AFS and HFT categories equally up to four quarters, commencing with the quarter ended June 30, 2018, the Bank has availed the relaxation permitted. An amount of ₹ 24848.50 lakhs, was carried forward as at the half year ended September 30, 2018. During the quarter the overall portfolio of the bank has a positive MTM as at December 31, 2018 hence no further provision was required. Accordingly, the above circular will not apply to the bank for the quarter.

LCR Disclosure - Q3 2018 - 19 (37.5 KB)

Statement of Assets & Liabilities is as under:-

(in lakhs)

The Bank has made an additional provision over and above the IRAC norms/ Policy of the Bank amounting to ₹919.45 crores in certain specific accounts as a conservative approach to provide for the inherent weakness in these accounts

RBI vide Circular no. DBR.No.BP.BC.108/21.04.048/2017-18 dated June 6, 2018 permitted banks to continue the exposure to MSME borrowers to be classified as standard assets where the dues between September 1, 2017 and December 31, 2018 are paid not later than 180 days for their respective original due dates. Accordingly, the Bank has retained MSME exposure of ₹ 193896 lakhs as standard asset as on December 31, 2018. In accordance with the provisions of the circular, the Bank has not recognised interest income of ₹ 555 lakhs and is maintaining a standard asset provision of ₹ 9695 lakhs as on December 31, 2018 in respect of such borrowers.

On January 2, 2019 the Board of Directors of the Bank and the Board of Directors of Vijaya Bank and Dena Bank at their respective meetings, approved amalgamation of Vijaya Bank and Dena Bank with the Bank. The Boards of respective banks have also approved the fair share swap ratio of 402 equity shares of FV ₹2/- each of Bank of Baroda to every 1000 shares of FV ₹10/- each of Vijaya Bank and 110 equity shares of FV ₹2/- each of Bank of Baroda for every 1000 shares of FV ₹10/- each of Dena Bank. The Government of India through a gazette notification F.No.1/1/2017-BOA dated January 2, 2019 approved the scheme of amalgamation after consulting reserve Bank of India. The bank has already intimated the stock exchanges the above information. The amalgamation will be effective from April 1, 2019 subject to statutory/ regulatory compliances/ clearances. The proposed transaction does not have any impact on the current financial results for the financial position of the Bank as at December 31, 2018.

The Board of Directors and the Shareholders of the bank have approved the Equity Share Purchase Scheme (ESPS) offer to the permanent employees of the bank subject to approval from regulatory authorities/ Government of India. The Board and the shareholders have approved offer of 10 crores equity shares to the employees at 25% discount of the 2 weeks volume weighted average price of the shares at NSE as at the record date. The record date is yet to be fixed by the bank.

The Bank during the quarter ended December 31, 2018 has issued two tranches of BASEL-III compliant Tier-II bonds viz., Series XVIII & XIX and have raised ₹ 971.50 crores & ₹ 240 crores respectively.

Provisioning Coverage Ratio is 73.47% as on December 31, 2018. (December 31, 2017: 68.03%)

Details of Investor's complaints for the quarter ended December 31, 2018: Pending at Beginning: 0; Received: 210; Disposed off: 210; Closing: 0.

The figures of the 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 2018

Part A-Business Segments

(in lakhs)

Part- B : Geographic Segments

SEBI Format

(in lakhs)

Notes forming part of the un-audited financial results for the Quarter/ Nine Months Ended 31st December 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 January 29, 2019. The same have been subjected to a limited review by the Statutory Central Auditors of the Bank.

The above results for the quarter ended December 31, 2018, have been prepared, following the same accounting policies as those followed in the annual financial statements for the year ended March 31, 2018.

The financial results for the quarter and nine months ended December 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 limited review by the auditors.

As per RBI directions vide Letter No. DBR.No.BO.15199/21.04.048/2016-17 dated June 23, 2017 and Letter No. DR.No.BP.1906/21.04.049/2017-18 dated August 28, 2017, the Bank during the quarter ended December 31, 2018 has reversed ₹ 4777 lakhs (previous corresponding quarter provided for ₹ 657 lakhs) due to release of provisions. The Bank holds a total provision of ₹ 45616 lakhs (previous corresponding period ₹ 13567 lakhs) in respect of 23 borrower accounts under the provisions of Insolvency and Bankruptcy Code (IBC) and said RBI Directions.

RBI circular DBR.No.BP.BC.113/21.04.048/2017-18 dated June 15, 2018 had granted banks an option to spread provisioning for mark to market (MTM) losses on investments held in AFS and HFT categories equally up to four quarters, commencing with the quarter ended June 30, 2018, the Bank has availed the relaxation permitted. An amount of ₹ 24848.50 lakhs, was carried forward as at the half year ended September 30, 2018. During the quarter the overall portfolio of the bank has a positive MTM as at December 31, 2018 hence no further provision was required. Accordingly, the above circular will not apply to the bank for the quarter.

LCR Disclosure - Q3 2018 - 19 (37.5 KB)

Statement of Assets & Liabilities is as under:-

(in lakhs)

The Bank has made an additional provision over and above the IRAC norms/ Policy of the Bank amounting to ₹919.45 crores in certain specific accounts as a conservative approach to provide for the inherent weakness in these accounts

RBI vide Circular no. DBR.No.BP.BC.108/21.04.048/2017-18 dated June 6, 2018 permitted banks to continue the exposure to MSME borrowers to be classified as standard assets where the dues between September 1, 2017 and December 31, 2018 are paid not later than 180 days for their respective original due dates. Accordingly, the Bank has retained MSME exposure of ₹ 193896 lakhs as standard asset as on December 31, 2018. In accordance with the provisions of the circular, the Bank has not recognised interest income of ₹ 555 lakhs and is maintaining a standard asset provision of ₹ 9695 lakhs as on December 31, 2018 in respect of such borrowers.

On January 2, 2019 the Board of Directors of the Bank and the Board of Directors of Vijaya Bank and Dena Bank at their respective meetings, approved amalgamation of Vijaya Bank and Dena Bank with the Bank. The Boards of respective banks have also approved the fair share swap ratio of 402 equity shares of FV ₹2/- each of Bank of Baroda to every 1000 shares of FV ₹10/- each of Vijaya Bank and 110 equity shares of FV ₹2/- each of Bank of Baroda for every 1000 shares of FV ₹10/- each of Dena Bank. The Government of India through a gazette notification F.No.1/1/2017-BOA dated January 2, 2019 approved the scheme of amalgamation after consulting reserve Bank of India. The bank has already intimated the stock exchanges the above information. The amalgamation will be effective from April 1, 2019 subject to statutory/ regulatory compliances/ clearances. The proposed transaction does not have any impact on the current financial results for the financial position of the Bank as at December 31, 2018.

The Board of Directors and the Shareholders of the bank have approved the Equity Share Purchase Scheme (ESPS) offer to the permanent employees of the bank subject to approval from regulatory authorities/ Government of India. The Board and the shareholders have approved offer of 10 crores equity shares to the employees at 25% discount of the 2 weeks volume weighted average price of the shares at NSE as at the record date. The record date is yet to be fixed by the bank.

The Bank during the quarter ended December 31, 2018 has issued two tranches of BASEL-III compliant Tier-II bonds viz., Series XVIII & XIX and have raised ₹ 971.50 crores & ₹ 240 crores respectively.

Provisioning Coverage Ratio is 73.47% as on December 31, 2018. (December 31, 2017: 68.03%)

Details of Investor's complaints for the quarter ended December 31, 2018: Pending at Beginning: 0; Received: 210; Disposed off: 210; Closing: 0.

The figures of the 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 2018

Part A-Business Segments

(in lakhs)

Part- B : Geographic Segments

SEBI Format

Notes forming part of the unaudited financial results for the Quarter Ended June 30, 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 July 27, 2018. The same have been subjected to review by the Statutory Central Auditors of the Bank.

The above results for the quarter ended June 30, 2018 have been prepared, following the same accounting policies as those followed in the annual financial statements for the year ended March 31, 2018.

The figures for quarter ended March 31 2018 are the balancing figures between audited figures in respect of the financial year 2017 -18 and the published year to date figures upto December 31, 2017.

The financial results for the quarter ended June 30, 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 review by the auditors.

During the quarter the bank has made provision of Rs.52243 lakhs (previous corresponding quarter Rs. Nil) in respect of 26 borrower accounts under the provisions of Insolvency and Bankruptcy Code (IBC) and RBI Directions. The total provision made on these accounts is Rs.83180 lakhs (previous corresponding quarter Rs. Nil).

RBI circular DBR.No.BP.BC.113/21.04.048/2017-18 dated June 15, 2018 grants banks an option to spread provisioning for mark to market (MTM) losses on investments held in AFS and HFT categories for the quarter ended June 30, 2018. The circular states that the provisioning for this quarter may be spread equally over up to four quarters, commencing with the current quarter ended June 30, 2018. The Bank has availed the relaxation permitted and has provided an amount of Rs. 12424 lakhs being one fourth of the liability during the quarter ended June 30, 2018. The balance of Rs. 37273 lakhs has been deferred to the subsequent three quarters.

Statement of Assets & Liabilities is as under: -

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 had provided an amount of Rs.9700 lakhs being one fourth of the liability during the quarter ended March 31, 2018. During the quarter ended June 30, 2018, the bank has charged the entire unamortised gratuity expense of Rs. 29100 Lakhs to the profit and loss account instead of Rs.9700 Lakhs. Consequently, the profit for the quarter is lower by Rs.12620 Lakhs (net of taxes)

Provisioning Coverage Ratio is 69.11% as on June 30, 2018. (June 30, 2017: 66.28%)

Details of Investor's complaints for the quarter ended June 30, 2018: Pending at Beginning: 0; Received: 190; Disposed off: 190; Closing: 0.

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

Liquidity Coverage Ratio (LCR) Disclosure -June 2018

Segment reporting for the Quarter Ended 30th June 2018

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 respective segment.

Place : Mumbai
Date : 27th July 2018