Bank of baroda

Year ended March 31,
2004
2005
(in Rs. million)
Interest income
62,783.57
63,581.94
Interest expense
40,965.84
36,953.06
Net interest income
21,817.73
26,628.88
The increase in net interest income was due primarily to 9.80% decrease in total interest expense from Rs. 40,965.84
million in fiscal 2003 to Rs. 36,953.06 million in fiscal 2004. This primarily reflected lower average cost of deposits for the
Parent.
Interest Income
The following table sets forth the components of our interest income:
Year ended March 31,
2004
2005
(in Rs. million)
Interest / Discount on Advances/Bills
31,551.64
29,108.24
Income on Investments
27,811.45
29,996.44
Interest on Balances with Reserve Bank of India and
other Inter-Bank Funds
2,430.30
2,079.04
Others
990.18
2,398.22
Total interest income
62,783.57
63,581.94
Interest and discount on advances and bills decreased by 7.74% from Rs. 31,551.64 million in fiscal 2003 to Rs.
29,108.24 million in fiscal 2004, reflecting lower interest rates in the markets where we operate.
Investment income increased by 7.86% from Rs. 27,811.45 million in fiscal 2003 to Rs. 29,996.44 million in fiscal 2004.
Interest Expense
Our interest expense decreased from Rs. 40,965.84 million in fiscal 2003 and Rs. 36,953.06 million in fiscal 2004, mainly
due to reduction in interest on deposits.
Our other interest expense increased from Rs. 1,914.11 million in fiscal 2003 to Rs. 2,103.59 million in fiscal 2004 mainly
due to additional Tier-II bonds issued by the Parent.

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Other Income
Our other income increased by 34.24% from Rs. 13,587.83 million in fiscal 2003 to Rs. 18,240.38 million in fiscal 2004.
The following table sets forth the components of our other income: