पहली तिमाही 2021-22 वित्‍तीय रिपोर्ट

Financial Results June 21

Standalone- SEBI

Standalone Segment

Standalone SEBI Notes June 2021-22

• 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 August 7, 2021. The same has been subjected to limited review by Statutory Central Auditors of the Bank in line with the guidelines issued by the Reserve Bank of India and as per SEBI (Listing Obligations & Disclosure Requirements) Regulation, 2015.
• The above standalone financial results for the quarter ended June 30, 2021 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 ended June 30, 2021 as followed in the previous financial year ended March 31, 2021.
• The above financial results have been arrived at after considering necessary provision for NPAs, Standard Assets , Restructured Assets and Investment Depreciation/Provision, Provisions 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.
• 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 ₹ 818003 Lakhs being 100% of total outstanding as on June 30, 2021.
• 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 ₹19312 Lakhs as on June 30, 2021.
• 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 accounts of continuous volatility in financial market, Bank of Baroda has considered internal and external sources of information including economic forecast and industry report up to date of approval of financial results in determining the impact on various elements of its financial statements including recoverability of advances & provision there on, investment valuation, other assets and liabilities of Bank of Baroda.
  The second wave of the COVID-19 pandemic, where the number of new cases significantly increased in India following the discovery of mutant coronavirus variants in the country, which led to the re-imposition of localized/regional lockdown measures in various parts of the country. The second wave has started to subside from June 2021 onwards and there has been a gradual lifting of lock downs, resulting in an increase in economic activity. The bank is regularly keeping a watch on development & taking proactive measures to mitigate the challenges posed by this second wave.
  Given the uncertainty because of COVID -19 pandemic, the Bank is continuously monitoring any material change in future economic conditions which may impact the Bank’s operations and its financial results depending on the developments which may differ from that estimated as the date of approval of these financial results.
  In View of the uncertainties created by the resurgence of the COVID -19 pandemic in India, RBI has announced Resolution Framework 2.0 vide its circular dated May 05, 2021 for resolution of loans to Individuals and Small Businesses along with loans to MSME sector stressed due to COVID-19 pandemic, without a downgrade in the asset classification. In accordance to these, the Bank is required to make higher of the provisions held as per the extant IRAC norms immediately before implementation, or 10 percent of the residual debt.
• As per Directions of RBI vide letter no 10655/21.04.048/2018-19 dated 21.06.2019 disclosure with respect to Delhi Airport Metro Express Pvt. Ltd. (DAMEPL) as under: (In ₹ Lakhs)
  

  Particulars	Amount not treated as NPA as per IRAC Norms	Provision required as per IRAC Norms	Provision actually made
  Principal	16400	6560	6560
  Interest	7943	7943	7943
  Total	24343	14503	14503

  Further in addition there are four other accounts which are classified as standard as per Court orders, with aggregate outstanding of ₹ 322298 Lakhs as of June 30, 2021 against which Bank is holding provision of ₹ 165868 Lakhs as of June 30, 2021as per IRAC norms, including provision for unrealized interest.
• In accordance with the RBI Cir. No. DOR.STR.REC.11/21.04.048/2021-22 dated 05.05.2021 on “Resolution Framework – 2.0: Resolution of COVID – 19 related stress of Individuals1 and Small Business2”, the number of borrower accounts where modification were sanctioned and implemented and the aggregate exposure to such borrowers are as under:- (In ₹ Lakhs)
  

  No of Accounts	Aggregate exposure as on 30.06.2021
  8544	66494

  (Individual covers only Personal Loan segment as per RBI circular No DOR. No. BP.BC/3/21.04.048/2020-21 dated August 6, 2020 and now covered in to para 5(a) of RBI circular No DOR.STR.REC.11/21.04.048/2021-22 dated May 5, 2021.
  Small Business (including retail trade and wholesale trade) extended to individual which were covered under MSME as per RBI circular No DOR. No. BP.BC/4/21.04.048/2020-21 dated August 6, 2020 and now covered in to para 5(b) of RBI circular No DOR.STR.REC.11/21.04.048/2021-22 dated May 5, 2021.)
• 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 total outstanding including NFB and investment in such cases as on June 30, 2021 is ₹ 1446260 Lakhs and in compliance the above RBI circular, the Bank has made additional provision of ₹ 37304 Lakhs during the quarter ended June 30, 2021 and holds total provision of ₹ 481430 Lakhs as on June 30, 2021.
• As per the RBI Circular No. DBR.No.BP.BC.18/21.04.048/2018-19 dated 01.01.2019, 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 on 'Restructuring of Advances - Micro, Small and Medium Enterprises (MSME) Sector' (One Time Restructuring) and RBI circular No DOR.STR.REC.12/21.04.048/2021-22 dated 05.05.2021 & RBI circular No DOR.STR.REC.21/21.04.048/2021-22 dated 04.06.2021 on Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs), 127655 MSME borrower accounts were restructured amounting to ₹ 915171 Lakhs as on June 30, 2021.
• 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, 2021 is ₹ 34945 Lakhs which is to be amortised in the subsequent quarters by the Bank.
• Non-Performing Assets Provisioning Coverage Ratio (including floating provision) is 83.14% as on June 30, 2021.
• The Bank has purchased PSLC (Priority Sector lending Certificates) of ₹350000 Lakhs under the category Small and Marginal Farmer and sold PSLC of ₹ 100000 Lakhs under the category Micro Enterprises during the current quarter.
• Number of Investors' complaints pending at the beginning of the quarter was NIL. The Bank has received 182 Investors' complaints during the quarter ended June 30, 2021. All complaints have been disposed of during the quarter. There are NIL pending Investors' complaints at the end of the quarter.
• A penalty of ₹ 41.75 Lakhs has been imposed on the Bank by Reserve Bank of India for the quarter ended June 30, 2021.
• 18. Details of Resolution plan implemented in Domestic operations under Resolution Framework for COVID 19 related stress as per RBI circular Circular RBI/2020-21/16 DOR.No.BP.BC/3/21.04.048/2020-21 dated 06. August 2020 as of June 30, 2021.(In ₹ Lakhs)
  

  Type of borrower	(A) Number of accounts where resolution plan has been implemented under this window	(B) exposure to accounts mentioned at (A) before implementation of the plan	(C) Of (B), aggregate amount of debt that was converted into other securities	(D) Additional funding sanctioned, if any, including between invocation of the plan and implementation	(E) Increase in provisions on account of the implementation of the resolution plan $
  Personal Loans	7110	102514	0.00	0.00	10252
  Corporate persons*	28	867711	5009	44267	115483
  Of which, MSMEs	8	35501	0.00	916	3642
  Others	1	92511	33003	9262	29629
  Total	7139	1062736	38012	53529	155364

  *As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
  $ Total Provision held as on 30.06.2021 in the accounts restructured.
• In accordance with the instructions of RBI circular dated 07.04.2021 on “Asset Classification and Income Recognition following the expiry of COVID 19 regulatory package”, the Bank shall refund/adjust “interest on interest” charged to all borrowers including those who has availed of working capital facilities during moratorium period i.e. 01.03.2020 to 31.08.2020, irrespective of whether moratorium had been fully or partially availed or not availed. Pursuant to these instructions, the methodology for calculation of the amount to be refunded/ adjusted for different facilities has been circulated by the Indian Bank’s Association (IBA) as required by RBI notification. The Bank has estimated interest relief of ₹ 50500 Lakhs and reduced the same from interest earned during the quarter ended and year ended 31st March 2021. Amount no longer required on Crystallization of such liability will be credited to interest earned during the quarter ending 30.09.2021.
• 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 comparative figures for quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the financial year 2020 -21 and the published year to date figures up to December 31, 2020 which were subject to limited review.
• The figures of the previous period have been regrouped / rearranged, wherever necessary, to conform to the current period classifications.

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