Bank of baroda

Fiscal Year Ended March 31, 2005 Compared with the Fiscal Year Ended March 31, 2004
Our total income decreased marginally from Rs. 78,660.75 million in fiscal 2004 to Rs. 77,362.46 million in fiscal 2005
and our total expenditure increased slightly from Rs. 53,807.85 million in fiscal 2004 to Rs. 54,343.32 million in fiscal
2005. Our operating profit decreased by 7.38% from Rs. 24,852.90 million in fiscal 2004 to Rs. 23,019.14 million in fiscal
2005. Our net profit decreased by 30.00% from Rs. 9,669.96 million in fiscal 2004 to Rs. 6,768.40 million in fiscal 2005.
Our total income was lower in fiscal 2005 mainly on account of a Rs. 4,823.80 million, or 47.41%, reduction on profit on
sale of investments from Rs. 10,175.30 million in fiscal 2004 to Rs. 5,351.50 million fiscal 2005. Excluding profit on sale
of investments for both periods, our total income would have increased by 5.15% mainly due to a 15.85% increase in net
interest income.
Net Interest Income
Our net interest income increased by 15.85% from Rs. 25,715.86 million in fiscal 2004 to Rs. 29,792.72 million in fiscal
2005. The following table sets forth the components of our net interest income:
Year ended March, 31
2004
2005
(in Rs. million)
Interest income
61,470.69
64,314.18
Interest expense
35,754.83
34,521.46
Net interest income
25,715.86
29,792.72

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BANK OF BARODA
The increase in net interest income was primarily due to a 4.63% increase in total interest income and a 3.45% decrease
in interest expense from Rs. 61,470.69 million in fiscal 2004 to Rs. 64,314.18 million in fiscal 2005. This increase was
due to a 3.64% increase in interest on advances from Rs. 28,008.28 million in fiscal 2004 to Rs. 29,027.51 million in
fiscal.
Our average interest earning assets increased by 13.89% from Rs. 768,852.4 million in fiscal 2004 to Rs. 875,636.7
million in fiscal 2005. Our net interest margin increased from 3.34% in fiscal 2004 to 3.40% in fiscal 2005 and our spread
increased from 3.02% in fiscal 2004 to 3.05% in fiscal 2005.