Bank of baroda

Restriction on Share Capital and Voting Rights
Public sector banks can issue equity shares as per the SEBI Guidelines.
The paid up capital of corresponding new banks may be increased by such amounts as the board of directors of the
corresponding new bank may, after consultation with the RBI and with the previous sanction of the central government,
raise by public issue of shares in such manner as may be prescribed, so however that the central government’s
shareholding does not fall below 51% of the paid up capital of the bank.
No shareholder of the corresponding new bank, other than the central government, shall be entitled to exercise voting
rights in respect of any shares held by them in excess of one percent of the total voting rights of all the shareholders of
the corresponding new bank.
Regulatory Reporting and Examination Procedures
The RBI is empowered under Section 27(2) of the Banking Regulation Act to inspect a bank. In 1995, RBI introduced a

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system of off-site monitoring and surveillance, with the primary objective of monitoring the financial condition of banks in
between on-site examinations. The RBI monitors prudential parameters at quarterly intervals. To this end and to enable
off-site monitoring and surveillance by the RBI, banks are required to report to the RBI on aspects such as:
assets, liabilities and off-balance sheet exposures;
risk weighting of these exposures, the capital base and the capital adequacy ratio;
unaudited operating results for each quarter;
asset quality;
concentration of exposures;
connected and related lending and the profile of ownership, control and management;
ownership, control and management;
structural liquidity and interest rate sensitivity;
subsidiaries, associates and joint ventures;
consolidated accounts and related financial information;
information on risk based supervision;
analysis of balance sheet; and
other prudential parameters.
The RBI also conducts periodic on-site inspections on matters relating to the bank’s portfolio, risk management systems,
internal controls, credit allocation and regulatory compliance, at intervals ranging from one to three years. We are subject
to the on-site inspection by the RBI at yearly intervals. The inspection report, along with the report on actions taken by us,
has to be placed before our Board of Directors. On approval by the Board of Directors, we are required to submit the
report on actions taken by us to the RBI. The RBI also discusses the report with the management team including the
Chairman and Managing Director and the Executive Director.
The RBI also conducts on-site supervision of zonal offices, regional offices and other selected branches with respect to
their general operations and foreign exchange related transactions.