Bank of baroda

Continue growing our retail banking business
We have identified the growth of our retail banking sector as a priority business initiative for the past few years. Our
dedicated retail banking department was established in October 2002. Our retail loans have grown from Rs. 27,128
million as at March 31, 2003 to Rs. 63,830 million as at March 31, 2005, reflecting a CAGR of 53.39%. We have already
intensified our focus on this sector by simplifying our current processes, launching new products and services, establishing
specialist personal banking, Baroda Moneyplexes (dedicated retail product cells) and housing finance branch locations,
developing our distribution channels, including ATMs and internet banking, and improving customer service. In addition,
we believe that there is potential to generate additional revenue growth by focusing on higher value added products and
by enhancing cross-selling across our different distribution channels. Increasing the sale of high margin products such as
insurance products and selling our depository services will also increase our fee-based revenue.
Strengthen our priority sector banking business
We believe that priority sectors (including agriculture and small-scale industry) offer large and potentially profitable
growth opportunities. India has large unexploited land resources and a variety of agro-climatic zones. It is one of the
largest producers of milk, cereals, vegetables and fruits. Approximately 23.0% of India’s GDP is derived from agriculture.
The industry supports approximately two-thirds of India’s population and accounts for 14.7% of export earnings. As of
Novembeer 30, 2005, we have 1,711 branches in rural and semi-urban centres and we intend to maintain and enhance
our position as one of the leading banks for agricultural lending in India. We have a nationwide presence in the
agriculture and small-scale industry sectors. We intend to further expand our agriculture and small-scale industry sector
banking activities by establishing more small scale industry branches. We have identified over 500 of our rural branches
to target consumers for intensive farm credit lending. We see increased potential for credit deployment in agricultural
export zones throughout the country. Another aspect of our strategy is to further strengthen our ties with the agricultural
community as well as related manufacturers. For example, we have entered tie-ups with eight tractor manufacturing
companies to promote investment credit, and we have also initiated a special scheme for financing the purchase of
second hand farming equipment.