Bank of baroda

Six months ended September 30,
2004
2005
(in Rs. million)
Payments to and Provisions for Employees
7,081.28
7,687.98
Rent, Taxes and Lighting
921.17
826.23
Printing and Stationery
92.32
98.65
Advertisement and Publicity
29.21
167.79
Depreciation on Bank’s Property other than Leased Assets
448.63
418.54
Directors’ Fees, Allowances and Expenses
4.18
2.70
Auditors’ Fees and Expenses
(including Branch Auditors’ Fees and Expenses)
96.57
88.86
Law Charges
53.49
49.10
Postages, Telegrams, Telephones, etc.
89.31
112.52
Repairs and Maintenance
225.68
225.52
Insurance
320.05
423.06
Other Expenditure
902.08
1557.30
Total Operating Expenses
10,263.97
11,658.25
The primary component of our operating expenses was payments to and provision for employees, which increased by
8.57% from Rs. 7081.28 million in the six months ended September 30, 2004 to Rs. 7,687.98 million in the six months
ended September 30, 2005. As a percentage of total income, payments to and provision for employees increased to
18.95% in the six months ended September 30, 2005 from 17.83% in the six months ended September 30, 2004. This
increase was primarily due to the implementation of the wage revision by the Parent.
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 72.63% from Rs.
902.08 million in the six months ended September 30, 2004 to Rs. 1,557.30 million in the six months ended September
30,2005. This increase was primarily due to a Rs. 512.12 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. 11,842.25 million in the six months ended
September 30, 2004 to Rs. 10,128.09 million in the six months ended September 30, 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
29.81% in the six months ended September 30, 2004 to 24.97% in the six months ended September 30, 2005.

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284
BANK OF BARODA
Provisions and Contingencies
Provisions and contingencies made in the six months ended September 30,2005 decreased by 17.76% from Rs. 6,665.27
million in the six months ended September 30,2004 to Rs. 5,481.36 million compared with. The following table sets forth,
for the periods indicated, the components of our provisions and contingencies: