Bank of baroda

Entering new areas businesses, alliances and strategic acquisitions
We intend to expand into new lines of business, which are complementary to our existing product and service lines such
as life insurance and stock broking. We intend to develop these businesses by entering into joint ventures and alliances
with leading product and service suppliers and, in some cases, may also make strategic acquisitions. We also intend to
promote the cross selling of our own and third party products in order to augment our fee based revenue.
Reduce cost of funds
We have achieved a low overall cost of funds through a large base of low-cost deposits, with total deposits representing
85.92% of our funding as of March 31, 2005. Our low cost deposits, both current and savings, constituted 36.45% of our
total deposits as of that date. As of September 30, 2005, our low cost deposits constituted 38.32% of our total deposits.
Our total deposits represented 84.78% of our funds as of that date. We believe we can enlarge our low-cost funding base
by leveraging our extensive branch network and large customer base, particularly in the rural areas where many of the
deposits are low-cost savings deposits. In particular, we are focused on the retail rural section emphasizing low interest
savings deposits.
Building our corporate image and our “Bank of Baroda” brand
We intend to continue to enhance our brand recognition in the marketplace through our brand building efforts. We have
undertaken various communication and promotional initiatives such as developing and introducing our new logo, appointing
a brand ambassador, and launching product focused campaigns. We believe that these initiatives, as well as this Issue,
will enhance the visibility of our brand name and strengthen our recognition as a premier Indian bank.

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THE ISSUE
Equity Shares issued by the Bank .....................................
71,000,000 Equity Shares
of which:
Employee Reservation Portion* .......................
Up to 7,100,000 Equity Shares
Net Issue ......................................................................
At least 63,900,000 Equity Shares
of which
QIB Portion .........................................................
Up to 31,950,000 Equity Shares (allocation on
proportionate basis)
of which:
Available for Mutual Funds ........................................
Up to 1,597,500 Equity Shares (allocation on proportionate
basis)
Balance for all QIBs including Mutual Funds ..........
Up to 30,352,500 Equity Shares (allocation on
proportionate basis)
Non-Institutional Portion ..............................................
At least 9,585,000 Equity Shares (allocation on
proportionate basis)
Retail Portion ...............................................................
At least 22,365,000 Equity Shares (allocation on
proportionate basis)
Equity Shares outstanding prior to the Issue ....................
293,265,400 Equity Shares
Equity Shares outstanding after the Issue .........................
364,265,400 Equity Shares
Use of proceeds by the Bank .............................................
See the section titled “Objects of the Issue” on page 25 of
this Red Herring Prospectus.
*
For Eligible Employees.
The Issue structure mentioned above is subject to the condition that Non-Resident shareholding in the post Issue paid up
share capital of our Bank shall not exceed 20%.

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