Bank of baroda

BANK OF BARODA
Six months ended September 30,
2004
2005
(in Rs. million)
Payment to and provision for employees
6,857.94
7,417.99
Rent, Taxes and Lighting
874.48
779.95
Printing and Stationery
83.42
88.95
Advertisement and publicity
23.13
156.86
Depreciation on Banks Properties
(net of amounts adjusted against revaluation reserve)
426.57
394.15
Directors’ Fees, Allowances and Expenses
0.00
2.25
Auditor’s Fees and Expenses
94.06
87.51
Law Charges
50.74
45.59
Postage, Telegrams, Telephones, etc.
74.78
95.59
Repairs and Maintenance
207.76
214.11
Insurance
304.44
401.17
Other Expenditure
792.62
1,394.29
Total Operating Expenses
9,789.94
11,078.41
The primary component of our operating expenses was payments to and provision for employees, which increased by
8.17% from Rs. 6,857.94 million in the six months ended September 30, 2004 to Rs. 7,417.99 million in the six months
ended September 30, 2005 mainly due to implementation of wage revision in July 2005. We had 39,603 employees as
of September 30, 2004 and 39,170 employees as of September 30, 2005.
Our other expenditure includes, among others, travelling and conveyance expenses, computer software and maintenance
charges and amortisation of securities in the Held to Maturity category. Other expenditure increased by 75.91% from
Rs. 792.62 million in the six months ended September 30, 2004 to Rs.1,394.29 million in the six months ended September
30, 2005. This was primarily due to a Rs. 512.12 million amortization charge for securities in the Held to Maturity
category.
Operating Profit
As a result of the foregoing factors, operating profit before provisions and contingencies decreased by 17.05% from Rs.
11,464.03 million in the six months ended September 30, 2004 to Rs. 9,509.40 million in the six months ended September
30, 2005. Excluding the profit on the sale of investments in both periods, our operating profit before provisions and
contingencies would have increased by 5.16% in the six months ended September 30, 2005 compared with the six
months ended September 30, 2004. As a percentage of total income, our operating profit decreased from 29.92% in the
six months ended September 30, 2004 to 24.47% in the six months ended September 30, 2005.
Provisions and Contingencies
Provisions and contingencies made in the six months ended September 30, 2005 decreased to Rs. 5,349.32 million
compared with Rs. 6.401.04 million in the six months ended September 30, 2004. The following table sets forth, for the
periods indicates, the components of our provisions and contingencies:

---

267