Bank of baroda

Interest Expense
Our interest expense decreased by 3.45% from Rs. 35,754.83 million in fiscal 2004 to Rs. 34,521.46 million in fiscal
2005. This fall has been primarily due to fall in the average cost of deposit from 4.96% to 4.23%. This however was off-
setted by a 13.33% increase in our overall deposits from Rs. 678,090.00 million in fiscal 2004 to Rs. 768,506.10 million
in fiscal 2005.
The fall in the average cost of deposits reflected a general decline in market interest rates and our focus on increasing
the share of low cost deposits. The Average cost of funds decreased from 4.98% in fiscal 2004 to 4.29% in fiscal 2005.
Our other interest expense, which consists mainly of interest on unsecured bonds for Tier-II capital, increased by 3.23%
from Rs. 1,620.64 million in fiscal 2004 to Rs. 1,673.00 million in fiscal 2005. The said Tier II Bonds were issued during
January 2004. The increase in interest expenses as mentioned above was due to the reason that interest on the bonds
for part of the quarter only was provided for fiscal 2004 whereas interest on the said bonds for the whole year was
provided in fiscal 2005.

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Other Income
Our other income decreased by Rs. 4,141.78 million, or 24.09%, from Rs. 17,190.06 million in fiscal 2004 to Rs. 13,048.28
million in fiscal 2005. The following table sets forth the components of our other income:
Year ended March, 31
2004
2005
(in Rs. million)
Commission, Exchange and Brokerage
3,444.48
3,425.99
Profit on sale of investments (Net)
10,175.30
5,351.50
Profit on sale of land, buildings and other assets (Net)
1.14
0.21
Profit on exchange transaction (Net)
1,695.62
1,932.69
Income earned by way of dividends, etc. from
Subsidiaries/companies/joint ventures in India
114.70
189.65
Miscellaneous Income
1,758.83
2,148.24