Bank of baroda

We may undertake mergers or acquisitions that may pose management and integration challenges.
We may make acquisitions and investments to expand our customer base, acquire new service or product offerings or
enhance our technical capabilities. Our future acquisitions or investments may not necessarily contribute to our profitability
and may, in some cases, require us to assume operational and financial problems of the acquired entity, including high
levels of NPAs. We also could experience difficulty in combining operations and cultures and may not realise the
anticipated synergies or efficiencies from such transactions.
RBI may require us to undertake mergers that have an adverse impact on our financial condition and results of
operations.
In June 2004 and June 2002, respectively, the RBI exercised its powers under section 45 of the Banking Regulation
Act and required that South Gujarat Local Area Bank and Benares State Bank Limited merge with us. These banks
were relatively small when compared to us. These mergers did not have a material impact on our results of operation
or financial condition.
The RBI, however, has the power to require that we undertake similar mergers in the future regardless of the impact the
merger may have on our financial condition and results of operations. We are not aware of any discussions regarding
any other institutions merging with our Bank.
We are involved in a number of legal proceedings that, if determined against us, could have a material adverse
impact on us.
There are 15 criminal cases against us. The amount of damages cannot be accurately estimated.
There are 294 civil cases filed against us for disputes relating to interest imposed, negligence, recovery of money,
guarantees, letters of credit, etc., in which the aggregate amount claimed is Rs. 5,809.94 million or more.
There are 454 cases filed against us relating to consumer disputes in relation to, inter alia, issuing money against
forged cheques, alleged wrongful refusal to sanction certain facilities, and refusal to release fixed deposit receipts/title
deeds pledged as security. The total amount claimed against us in these cases is Rs. 113.40 million.
There are 560 suits/writ petitions filed by employees/ex-employees pending against us and the total amount claimed
by the plaintiffs in these cases is approximately Rs. 135 million.
There are three cases in relation to security related offences that have been filed against the Bank involving Rs. 4.03
million.
There were three cases that were filed against us in relation to the violation of the erstwhile FERA involving an amount
of Rs. 13.10 million.

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Apart from the cases filed against us, we file cases from time to time against persons who are in default or are in
breach of their obligations to us or attempt to adversely affect our interests.
The information on the above cases is given as of November 30, 2005. We may incur substantial liability if the courts
rule against us in these cases. For details of these cases, please refer to the section titled “Outstanding Litigation and
Material Developments” beginning on page 297 of this Red Herring Prospectus.