|
Bangalore: Brickwork Ratings has assigned BWR AAA+ (Pronounced BWR Triple A Plus) for Bank of Baroda’s proposed Upper Tier II Capital Bonds issue of INR 1000 crore or INR 10.00 billion. Brickwork ratings’ ‘BWR AAA+’ stands for an instrument that is considered to offer the BEST credit quality in terms of timely serving of debt obligations. The rating factored higher operating profits, improving asset quality, well diversified credit deployment, comfortable capital adequacy & low cost deposits, healthy earning assets, profitable overseas operation, and the Government of India’s equity stake.
The bank has performed really well despite the fact that financial year 2009 has witnessed many challenges of financial crises in the domestic as well as overseas. Bank of Baroda however managed to maintain its growth momentum and overall progress achieved in the recent past. The bank’s global business had increased by 30.00% (as against 24.07% in FY08) during FY 09 to reach INR 3363.82 billion from INR 2587.35 billion for the same period in 2008. Similarly, the bank’s global gross advances and deposits grew by 34.90% and 26.60% respectively during FY 09.
Over the years, the bank’s asset quality has been improving through the bank’s relatively better credit culture and monitoring. As a result, the bank’s gross NPAs have come down to 1.27% as on 31st March 2009 from 1.84% for the same period a year ago. The bank’s net NPAs have shown a similar trend, which has declined to 0.31% in FY09 from 0.47% in FY08. When compared with its peers, the bank’s gross NPAs about 66 bps lower than that of peers’ 1.93%. Similarly, the bank’s net NPAs 35 bps lower than the peers’ average of 0.66%. Further, the bank’s overseas business gross and net NPAs stood at o.51% and 0.04% respectively during the year.
During FY 09, the bank’s low cost deposits mix was stable, with its domestic CASA deposits at 34.87%, which is 217 bps higher than its peer’s average of 32.70%, mainly driven by the bank’s aggressive savings and current account marketing during the year and also branch expansion in rural and semi urban areas. However, the bank’s global CASA deposits decreased from 31.22% in FY08 to 29.59% in FY 09. Further, the bank had comfortable capital adequacy ratio at 14.05% under Basel II norms during the year, which is significantly higher than its peers’ average of 13.51%. Similarly, the bank’s Tier I capital stood at 8.49%, which is...
More from Business Wire
| Single Page Format | 1 - 2 - Next |
Discuss this story on expressindia forums
|
|
 |
 |
 |
About Us | Contact Us | Advertisers | Site Map | Make us your homepage | Work for Us | RSS | Subscribe | Electronic Edition | Privacy Policy© 2009: The Indian Express Limited. All rights reserved throughout the world
