Bank of baroda

Introduction
Overview
Our Bank is one of India’s leading commercial banks. As of September 30, 2005, we had 2,694 branches in India spread
over 27 states and five union territories. In addition, as on date we maintain an international presence in 13 other
countries across the globe. (Our Subsidiaries have a presence in sixadditional countries). As of September 30, 2005, we
had a work force of 39,170 people serving over 25 million customers.
Our business involves six main business areas: corporate financial services; international operations; retail financial
services; business financial services; global treasury; and rural financial services.
We have maintained consistent growth in our business. Between fiscal 2001 and 2005, our total income grew at a
compounded annual rate of 4.60% and our total assets, total deposits and total advances grew at a compounded annual
growth rate of 10.58%, 10.75% and 12.16%, respectively.
Revenue
Our revenue, which is referred to herein and in our financial statements as our total income, consists of interest income
and other income.
Interest income consists of interest on advances (including the bills discounted) and income on investments. Income on
investments consists of interest and dividends from securities and our other investments. We also earn interest income
from inter-bank loans and cash deposits that we keep with the RBI. Our securities portfolio consists primarily of Government
of India and state government securities. We meet SLR ratio requirements through investments in these and other
approved securities. We also hold debentures and bonds issued by public sector undertakings and other corporations,
commercial paper, equity shares and mutual fund units. Our interest income is affected by fluctuations in interest rates as
well as the volume of activity.
Our other income consists principally of fee based income, commission, exchange and brokerage income, net profit on
sales of investments and gains or losses on foreign exchange transactions. Fee based income includes charges for
services such as cash management services and credit-related transactional services and also includes service charges
and processing fees chargeable on customers’ accounts and fees for remittance services, documentary credits, letters of
credit and issuance of guarantee. It also includes commissions on sales of non-funded products, such as debit cards and
insurance products, and commission on collections on behalf of the Government.
Expenses
Our interest expense consists of our interest on deposits as well as borrowings. Our interest expense is affected by
fluctuations in interest rates, the extent to which we fund our activities with low-interest or non-interest deposits and the
extent to which we rely on borrowings.
Our non-interest expense consists principally of operating expenses, including expenses for wages and employee benefits,
depreciation on fixed assets, rent paid on premises, insurance, postage and telecommunications, printing and stationery,
advertising and publicity, other administrative expenses and other expenses. Provisioning for non-performing assets,
depreciation on investments and income tax is included in provisions and contingencies.

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