Bank of baroda

Year ended March 31,
2004
2005
(in Rs. million)
Interest income
63,581.94
66,576.37
Interest expense
36,953.06
35,646.50
Net interest income
26,628.88
30,929.87
The increase in net interest income was due primarily to a 4.71% increase in total interest income from Rs. 63,581.94
million in fiscal 2004 to Rs. 66,576.37 million in fiscal 2005.
Interest Income
The following table sets forth the components of our interest income:
Year ended March 31,
2004
2005
(in Rs. million)
Interest and Discount on advances/bills
29,108.24
30,231.10
Income on Investment
29,996,44
30,891.73
Interest on balance with RBI and other Inter Bank Lending
2,079.04
2,450.49
Others
2,398.22
3,003.05
Total interest income
63,581.94
66,576.37
Interest and discount on advances and bills increased by 4.71% from Rs. 63,581.94 million in fiscal 2004 to Rs. 66,576.37
million in fiscal 2005. This increase was primarily due to a 21% increase in advances by the Parent in fiscal 2005.
Income from investments increased by 2.98% from Rs. 29,996.44 million in fiscal 2004 to Rs. 30,891.73 million in fiscal
2005. This increase was primarily due to an increase in investments partially offset by a decrease in market interest rates.
Interest on balances with the RBI and other inter-bank lending increased by 17.87% from Rs. 2,079.04 million in fiscal
2004 to Rs. 2,450.49 million in fiscal 2005. This increase was due to higher inter bank placements during fiscal 2005,
especially in overseas placements.
Interest Expense
Our interest expense decreased by 3.54% from Rs. 36,953.06 million in fiscal 2004 to Rs. 35,646.50 million in fiscal
2005, primarily due to lower average cost of deposits of the Parent.
Our other interest expense increased marginally from Rs. 2,103.59 million in fiscal 2004 to Rs. 2,116.69 million in fiscal
2005.
Other Income
Our other income decreased by 24.46% from Rs. 18,240.38 million in fiscal 2004 to Rs. 13,777.98 million in fiscal 2005.
The following table sets forth the components of our other income:

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