Bank of baroda

Total Operating Expenses
18,053.03
19,821.86

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BANK OF BARODA
The primary component of our operating expenses was payments to and provision for employees, which increased from
Rs. 12,525.22 million in fiscal 2004 to Rs. 13,810.52 million in fiscal 2005. This increase was primarily due to a higher
provision for staff retirement benefits. We had 39,803 employees as of March 31, 2004 and 39,529 employees as of
March 31, 2005. As a percentage of total income, payments to and provision for employees increased to 17.85% in fiscal
2005 from 15.92% in fiscal 2004.
Depreciation expenses on our property (i.e., our fixed assets, including furniture, fixtures and computers) increased by
8.35% from Rs. 755.70 million in fiscal 2004 to Rs. 818.77 million in fiscal 2005. Depreciation expenses were primarily
affected by increase in the amount of our fixed assets.
Insurance expenses increased by 50.98% from Rs. 420.33 million in fiscal 2004 to Rs. 634.60 million. This increase was
due primarily to an increase in DICGCI premiums for deposit insurance.
Other expenditure increased by 17.36% from Rs. 1,475.71 million in fiscal 2004 to Rs. 1,731.86 million in fiscal 2005. The
primary reason for this increase was the amortization of investments moved into the Held to Maturity category in fiscal
2005.
Operating Profit
As a result of the foregoing factors, our operating profit before provisions and contingencies decreased from Rs. 24,852.90
million in fiscal 2004 to Rs. 23,019.14 million in fiscal 2005. As a percentage of total income, our operating profit
decreased from 31.60% in fiscal 2004 to 29.75% in fiscal 2005. Excluding the profit on the sale of investments in both
periods, our operating profit before provisions and contingencies would have increased by 20.37% in fiscal 2005 compared
with the fiscal 2004.