Bank of baroda

Foreign Exchange and Derivative Transactions
We enter into foreign exchange and derivative transactions for our customers and for our own account. Our foreign
exchange contracts arise out of spot and forward foreign exchange transactions with corporate and non-corporate customers
and inter-bank counter parties. Our derivative contracts include interest rate swaps for corporate customers and for our
own hedging activities. We earn profit on inter-bank and customer transactions by way of a spread between the purchase
rate and the sale rate. Income from foreign exchange transactions is recorded as income from exchange transactions and
income from derivatives transactions is recorded as interest income under the head investment income. We use ISDA
master agreements for our derivatives transactions.
The aggregate notional principal amount of our forward foreign exchange contracts was Rs. 176,161.47 million as of
March 31, 2003, Rs. 223,092.96 million as of March 31, 2004, Rs. 23,6627.99 million as of March 31, 2005 and Rs.
196,136.74 million as of September 30, 2005. Since these contracts are marked to market, their fair value as of those
dates was the same as their notional value.
Our notional principal amount of our single currency interest rate swap agreements, cross currency swap agreements
and forward rate agreements was Rs. 18,680 million as of March 31, 2003, Rs. 28,920 million as of March 31, 2004 and
Rs. 56,236 million as of March 31, 2005 and Rs.71,286 Million as of September 30, 2005.
Significant Developments after September 30, 2005
Except as stated elsewhere in this Red Herring Prospectus, to our knowledge no circumstances have arisen since
September 30, 2005, which is the date of the last financial statements as disclosed in this Red Herring Prospectus, which
materially and adversely affect or are likely to affect, the trading and profitability of the Bank or the value of our assets or
our ability to pay our liabilities within the next 12 months.
As required by law, we shall be declaring our unaudited quarterly financial results for the period ending December 31,
2005 subsequent to the Issue Closing Date but prior to the listing of Equity Shares being issued under this Red Herring
Prospectus. We shall be issuing a public advertisement in relation to the same. Bidders should take note of the fact that
these results are not available at this stage while evaluating their decisions to participate in this Issue.

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