Bank of baroda

2004
2005
(in Rs. million)
Payments to and Provisions for Employees
12,944.18
14,211.83
Rent, Taxes and Lighting
1,708.31
1,745.47
Printing and Stationery
209.90
205.27
Advertisement and Publicity
255.31
120.15
Depreciation on Bank’s Property other than Leased Assets
805.49
871.14
Depreciation on Leased Assets
0.84
0
Directors’ Fees, Allowances and Expenses
14.17
17.75
Auditors’ Fees and Expenses
(including Branch Auditors’ Fees and Expenses)
186.62
173.25
Law Charges
120.42
111.91
Postages, Telegrams, Telephones, etc.
161.82
205.82
Repairs and Maintenance
418.27
446.06
Insurance
437.63
660.19
Other Expenditure
1,694.72
2,100.35
Total Operating Expenses
18,957.67
20,869.19

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The primary component of our operating expenses was payments to and provision for employees, which increased by
9.79% from Rs. 12,944.18 million in fiscal 2004 to Rs. 14,211.83 million in fiscal 2005. As a percentage of total income,
payments to and provision for employees increased to 17.69% in fiscal 2005 from 15.82% in fiscal 2004. This increase
was primarily due to a higher provision for the Parent’s staff retirement benefits. .
Our other expenditure includes, among others, travelling and conveyance expenses, computer software and maintenance
charges and amortisation of securities in the Held to Maturity category. Other expenditure increased by 23.93% from Rs.
1,694.72 million in fiscal 2004 to Rs. 2,100.35million in fiscal 2005. This increase was primarily due to a Rs. 197.58
million amortization charge for securities in the Held to Maturity category by the Parent.
Operating Profit
Operating profit before provisions and contingencies decreased from Rs. 25,911.58 million in fiscal 2004 to Rs. 23,838.67
million in fiscal 2005. This decrease was due to reduction in operating profit of the Parent. As a percentage of total
income, our operating profit also decreased from 31.67% in fiscal 2004 to 29.67% in fiscal 2005.
Provisions and Contingencies
Provisions and contingencies made in fiscal 2005 increased by 6.80% from Rs. 15,671.31 million in fiscal 2004 to Rs.
16,737.49 million compared with. The following table sets forth, for the periods indicated, the components of our provisions
and contingencies: