Bank of baroda

Income Recognition
As per the extant guidelines on IRAC norms as revised by RBI from time to time, if any advance account becomes NPA
as at the close of any year, interest accrued and credited to the income account, for the current year, as well as
corresponding period of previous year, should be reversed or provided for if the same is not realized. This applies to
Government guaranteed accounts also.
In respect of NPAs, fees and similar other income should be reversed or provided for, if unrealized. In accordance with
the above RBI guidelines on income recognition, once loan accounts are identified as non-performing, interest and other
fees charged in the account, if uncollected, are reversed and held in Interest suspense account. Interest income from
advances for NPAs is recognized only on realization.

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The following table provides a break down of our gross advances as of the dates indicated.
(Rs. in million except percentages)
BREAK UP OF GROSS ADVANCES
March 31,
September 30,
2001
2002
2003
2004
2005
2005
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
%
ASSET
CLASSIFICATION
Standard Assets
254,730.50
85.89 317,498.30
87.61 336,529.60
88.98 338,535.40
89.48 422,073.10
92.70 478,201.00
93.66
Non-Performing Assets
41,857.20
14.11
44,892.90
12.39
41,679.10
11.02
39,798.60
10.52
33,218.10
7.30
32,349.50
6.34
Of which:
Substandard Assets
11,430.70
3.85
9,875.90
2.73
6,937.30
1.83
9,025.60
2.39
4,313.50
0.95
4,448.60
0.87
Doubtful Assets
24,123.00
8.13
26,599.50
7.34
28,666.50
7.58
24,458.50
6.46
23,860.10
5.24
23,571.30
4.62
Loss Assets
6,303.50
2.13
8,417.50
2.32
6,075.30
1.61
6,314.50
1.67
5,044.50
1.11
4,329.60
0.85
Total Loan Assets
296,587.70
100.00 362,391.20
100.00 378,208.70
100.00 378,334.00
100.00 455,291.20
100.00 510,550.50 100.00