Bank of baroda



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impact our business.
We seek to protect our computer systems and network infrastructure from physical break-ins as well as security
breaches and other disruptive problems. Computer break-ins and power disruptions could affect the security of information
stored in and transmitted through these computer systems and networks. These concerns will intensify with our
increased use of technology and Internet-based resources. To address these issues and to minimise the risk of
security breaches we employ security systems, including firewalls and intrusion detection systems, conduct periodic
penetration testing for identification and assessment of potential vulnerabilities and use encryption technology for
transmitting and storing critical data such as passwords. However, these systems may not guarantee prevention of
frauds, break-ins, damage and failure. A significant failure in security measures could have an adverse effect on our
business.
System failures and calamities could adversely impact our business.
Our principal delivery channels include our branches and ATMs. Our current disaster recovery site for our Treasury
operations is located at Hyderabad and a system of periodic intra-day back-up of data on the disaster recovery site has
been put in place. For other computerised branches, we have implemented local offsite storage of back-up media. We
are also in the process of establishing a comprehensive disaster recovery site in Hyderabad as part of our technology
enabled business transformation project once the CBS is implemented. Any failure in our systems, particularly those
utilized for our retail products and services and transaction banking, or the occurrence of calamities such as earthquakes,
tsunamis and cyclones that affect areas in which we have a significant presence, could affect our operations and the
quality of our customer service.
Our contingent liabilities could adversely affect our financial condition.
As of September 30, 2005, we had contingent liabilities not provided for amounting to Rs. 376,913.46 million. Contingent
liabilities arising out of the ordinary course of business include liability on account of outstanding forward exchange
contracts of Rs. 196,136.74 million, guarantees given on behalf of customers of Rs. 43,164.80 million and acceptances,
endorsements and other obligations of Rs. 36,198.99 million. In addition, we have contingent liabilities on account of
claims against us not acknowledged as debts of Rs. 8,545.89 million. If these contingent liabilities materialize, fully or
partly, our financial condition and results of operations could be adversely affected
.
For further details please refer to section titled “Outstanding Litigation and Material Developments” beginning on page
297 of this Red Herring Prospectus.

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