Bank of baroda

767,792
39,942
5.20%
827,560
35,755
4.32%
937,744
34,521
3.68%
Net interest income
-
21,033
-
-
25,715
-
-
29,793
-
Interest_Margin_-_2.94%_-_-_3.34%_-_-_3.40%'>Net Interest Margin
-
2.94%
-
-
3.34%
-
-
3.40%
-
(Rs. in million, except percentages)
Six months ended
Six months ended
September 30, 2004
September 30, 2005
Average
Interest
Average
Average
Interest
Average
Balance
income/
yield
Balance
income/
yield
Expenses
Cost
Expenses
Cost
A s s e t s :
Advances
394,449
14,231
7.22
454,729
17,238
7.58
Investment
376,982
14,595
7.74
385,223
14,863
7.72
Others
77,006
1,940
5.04
73,324
1,572
4.29
Total Interest
earning assets
848,437
30,766
7.25
913,276
33,673
7.37
Fixed Assets
8,080
-
-
8,643
-
-
Other Assets
39,433
-
-
85,488
-
-
Total Assets
895,950
30,766
6.87
1,007,407
33,673
6.69
Liabilities
Deposits
779,320
16,071
4.12
820,933
16,995
4.14
Demand Deposits
Savings Deposits
Term deposits
B o r r o w i n g s
Unsecured subordinated Bonds
15,000
839
11.19
15,000
848
11.30
Other Borrowings
10,071
142
2.82
19,967
425
4.24
Total interest bearing liabilities
804,391
17,052
4.24
855,900
18,268
4.27
Capital and Reserves
46,891
-
-
56,690
-
-
Other liabilities
44,668
-
-
94,817
-
-
Total Liabilities
895,950
17,052
3.81
1,007,407
18,268
3.63
Net interest income
13,714
15,405
Net interest margin
3.23
3.37
1.
Net interest margin is the ratio of net interest income to average interest-earning assets. The difference in net
interest margin and spread arises due to the difference in the amount of average interest-earning assets and
average interest-bearing liabilities. If average interest-earning assets exceed average interest-bearing liabilities, net
interest margin is greater than the spread. If average interest-bearing liabilities exceed average interest-earning
assets, net interest margin is less than the spread.

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240
BANK OF BARODA
2.
Break up of cost of deposit in demand deposits, savings deposits and term deposits for half years ended September
30, 2004 and September 30, 2005 is not given as there are no internally generated data for the same.
3.
Inter office placements/borrowings of overseas territories are reflected as interest bearing assets/liabilities.
Analysis of Changes in Interest Income and Interest Expense Volume and Rate Analysis
The following table sets forth, for the periods indicated, the allocation of the changes in our interest income and interest
expense between average volume and changes in average rates. The changes in net interest income between periods
have been reflected as attributed either to volume or rate changes. For the purposes of this table, changes that are due
to both volume and rate have been allocated solely to changes in rate.
Fiscal 2004 vs. Fiscal 2003
Fiscal 2005 vs. Fiscal 2004
First 6months of Fiscal 2006 vs.
First 6 months of Fiscal 2005
Net
Change
Change
Net
Change
Change
Net
Change
Change
change
due to
due to
change
due to
due to
change
due to
due to
in interest
change in
change in
in interest
change in
change in
in interest
change in
change in
income
average
average
income
average
average
income
average
average
or
volume
Rate
or
volume
Rate
or
volume
Rate
expenses
expenses
expenses
(1)
(2)
(1)
(2)
(1)
(2)
Interest income:
Advances
(2,654)
1,379
(4,033)
1,019
3,382
(2,363)
3,007
4,352
(1,345)
Investments
2,289
7,134
(4,845)
569
3,878
(3,309)
268
638
(370)
Others
860
(1,164)
2,024
1,256
1,155
101
(368)
(186)
(182)
Total interest
earning assets
495
4,483
(3,983)
2,844
8,543
(5,699)
2,907
4,804
(1,897)
Interest expenses 
(3)
Deposits
(4,107)
2,699
(6,781)
(1,168)
4,485
(5,653)
924
1,714
(791)
Demand deposits 
(3)
53
(7)
60
(152)
30
(182)
Savings deposits
35
939
(904)
1,019
1,092
(73)
Term deposits
(4,915)
1,518
(5,713)
(2,035)
3,024
(5,059)
Borrowings
Unsecured Subordinated
Bond
122
324
(202)
52
0
52
9
0
9
Other borrowings
(202)
(223)
21
(118)
(64)
(54)
283
282
1
Total interest bearing
liabilities
(4,187)
2,126
(6,313)
(1,234)
4,337
(5,571)
1,215
1,996
(781)
Net interest margin
4682
4,078
1,692
(1)
The change due to change in average volume was calculated from the change in average balance over the two periods multiplied by the average
rate in the earlier period.
(2)
The change due to change in average rate is the total change less the change due to change in volume.
(3)
Break-up of interest expenses on demand deposits, saving deposits and time deposits for the half year ended September 30, 2004 and September
30, 2005 is not given as there is no internally generated date for the same.

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241
Yields, Spreads and Margins
The following table sets forth, for the periods indicated the yields, spreads and interest margins on our interest-earning
assets.
(Rs. in million except percentage)
Fiscal
First 6 months
of fiscal
2001
2002
2003
2004
2005
2005
2006
Interest income
57,573
59,555
60,976
61,470
64,314
30,766
336,73
Of Which Interest Income on
Rupee Assets
N.A.
N.A.
55,534
56,439
57,578
N.A.
N.A.
Average interest-earning assets
N.A.
668,346
716,175
768,852
875,636
848,437
913,276
Of Which Average Interest earning
Rupee Assets
NA
516,350
570,046
637,809
718,404
720,646
769,206
Interest expense
38,196
40,761
39,942
35,755
34,521
17,053
18,268
Of which interest expenses on
Rupee Liabilities
N.A.
N.A.
35,342
31,347
28,537
N.A.
N.A.
Average interest-bearing liabilities
N.A.
631,874
681,860
718,142
805,233
804,391
855,900
Of which Average Interest Bearing
Rupee Liabilities
N.A.
468,745
507,188
540790
605,060
611,890
633,496
Net interest income
N.A.
18,795
21,034
25715
29,793
13,713
15,405
Average total assets
614774
683,495
767,792
827567
937,744
895,950 1,007,407
Average interest-earning assets as a
percentage of average total assets
N.A.
97.78%
93.28%
92.91%
93.38%
94.70%
90.66%
Average interest-bearing liabilities as a
percentage of average total assets
N.A.
92.45%
88.81%
86.78%
85.87%
89.78%
84.96%
Average interest-earning assets as a
percentage of average interest-
bearing liabilities
N.A.
105.77%
105.03%
107.06%
108.74%
105.48%
106.70%
Average interest-earning rupee assets
as a percentage of average interest-
bearing rupee liabilities
N.A.
110.16%
112.30%
117.94%
118.73%
117.77%
121.42%
Yield (Interest earned/Average interest
earning assets)
N.A.
8.91%
8.51%
8.00%
7.34%
7.25%
7.37%
Of which Yield on Rupee
Earning Assets
N.A.
N.A.
9.74%
8.84%
8.01%
N.A.
N.A.
Cost of funds (Interest exp. /
Average interest bearing liabilities)
N.A.
6.45%
5.86%
4.98%
4.29%
4.24%
4.27%
Of which cost of Funds of
Rupee Liabilities
N.A.
N.A.
6.97%
5.80%
4.72%
N.A.
N.A.
Yield Spread (Yield – Cost of funds)
N.A.
2.46%
2.66%
3.02%
3.05%
3.01%
3.09%
Net interest margin
N.A.
2.81%
2.94%
3.34%
3.40%
3.23%
3.37%
Interest expense apportioned to
interest earning assets
N.A.
6.10%
5.58%
4.65%
3.94%
4.02%
4.00%
Notes:
1.
Interest bearing liabilities includes demand deposits.
2.
Interest earning rupee assets includes total interest earning assets less foreign operations, FCNR (B) loans, and
Foreign market placement.

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242
BANK OF BARODA
3.
Interest bearing rupee liabilities is total interest bearing liabilities less foreign operations, FCNR (B) deposits, EEFC,
RFC and Foreign market borrowings.
Returns on Equity and Assets
The following table presents selected financial ratios for the periods indicated.
(Rs. in million except percentages)
Fiscal
First 6 months
of fiscal
2001
2002
2003
2004
2005
2005
2006
Net profit after tax
3,011
5,459
7,728
9,670
6,768
5063
4,160
Average total assets
614,774
683,495
767,792
827,567
937,744
895,950 1,007,407
Average shareholders’ funds (#)
30,006
32,743
39,034
44,535
49,711
46,891
56,690
Net profit after tax as a percentage
of average total assets
0.49%
0.80%
1.01%
1.17%
0.72%
1.13%
0.83%
Net profit after tax as a percentage
of average shareholders’ funds
10.03%
16.67%
19.80%
21.71%
13.61%
21.59%
14.62%
Average shareholders’ funds as a
percentage of average total assets
4.88%
4.79%
5.08%
5.38%
5.30%
5.23%
5.63%
# Includes paid up share capital, Reserve and Surplus adjusted with revaluation reserve
The following table sets forth, as of September 30, 2005, an analysis of the residual maturity profile of our Domestic
investments in coupon-bearing securities. The amounts indicate the book value (i.e., the acquisition cost) of the securities
and are gross of depreciation.
(Rs. in million, except for percentages)
As on September 30, 2005
Upto
One to
Five to
More
one
five
ten
than ten
year
years
years
years
Total
Domestic
Amount
Amount
Amount
Amount
Amount
Yield
Government and other approved securities
(excluding recap/ special bonds)
14,837.69
77,520.69 122,172.18
60,431.65 274,962.21
8.40%
Other debt securities (including recap/
special bonds)
27,23.85
25,180.15
6,422.05
984.21
35,310.26
8.22%
Other coupon bearing securities
1,820.00
-
-
-
1,820.00
7.98%
Total coupon-bearing securities
19,381.53 102,700.84 128,594.23
61,415.86 312,092.46
8.45%
Total market value of coupon-bearing
securities
17,427.77 104,249.98 128,120.23
59,041.27 308,839.25
-
Funding
Our funding operations are designed to optimize the cost of funding and effective liquidity management. The primary
source of funding is deposits raised from our customers.
Total Deposits
The average cost (interest expense divided by average of monthly balances) of savings deposits was 3.48% in fiscal
2003, 2.98% in fiscal 2004 and 2.94% in fiscal 2005. The average cost of term deposits was 7.56% in fiscal 2003, 6.28%
in fiscal 2004 and 5.26% in fiscal 2005. Bank is maintaining deposits of RRB in current account. The average cost of
Demand deposits was 0.41% in fiscal 2003, 0.53% in fiscal 2004 and 0.22% in fiscal 2005. The following table sets forth,

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243
as of the dates indicated our outstanding deposits and the percentage composition by each category of deposits.