Bank of baroda

We could be subject to volatility in income from our treasury operations that could adversely impact our
financial results.
Our treasury operations contributed 54.54% and 52.81% of our total income in fiscal 2004 and fiscal 2005, respectively,
and 57.55% and 49.42% of our total income in the six months ended September 30, 2004 and the six months ended
September 30, 2005, respectively. Our treasury operations are vulnerable to changes in interest rates, exchange rates,
equity prices and other factors. In particular, if interest rates rise, the valuation of our portfolio may be impaired. Any
decrease in our income from our treasury operations could adversely affect our business if we cannot offset the same
by increasing returns on our loan assets.
Problems in the roll-out of our Core Banking Solution and implementing our technology enabled business
transformation project could adversely affect our ability to expand our products and services across our
branch network.
We are in the process of implementing our Core Banking Solution (“CBS”) and we are commencing the implementation
of our technology enabled business transformation project. These two information technology initiatives will allow us to

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increase interconnectivity among our branches and are required for us to provide many of the products and services we
have introduced. If we are unable to successfully roll-out the CBS across our branch network or implement our technology
enabled business transformation project, it will be difficult for us to expand our products and services across our
branch network. In addition, we have only recently fully or partially computerized the operations of all of our branches
and we may experience difficulties in adapting to these technologies.
Significant security breaches in our computer systems and network infrastructure and fraud could adversely