Bank of baroda

Provisions and Contingencies
Provisions and contingencies made in fiscal 2005 increased by 7.03% from Rs. 15,182.93 million in fiscal 2004 to Rs.
16,250.73 million in fiscal 2005. The following table sets forth, for the periods indicated, the components of our provisions
and contingencies:
Year ended March, 31
2004
2005
(in Rs. million)
Provision for Non Performing Advances
5,380.70
4,293.85
Provision for Standard Advances
3.23
75.64
Depreciation on Investments
(1,014.42)
8,098.14
Provisions for Income Tax
5,659.15
1,862.77
Provision for Restructured Standard Accounts
86.57
240.00
Others
855.70
1,652.03
Floating Provision for NPAs (in addition to norms)
4,212.00
28.30
Total provisions and contingencies.
15,182.93
16,250.73
Our provisioning in respect of non-performing assets decreased by 20.20% from Rs. 5,380.70 million in fiscal 2004 to Rs.
4,293.85 million in fiscal 2005. This decrease was due to an improvement in our asset quality.
Our provisioning for depreciation on investments was Rs. 8,098.14 million in fiscal 2005, as against Rs. 1,014.42 million
written back in fiscal 2004. The provision for depreciation in investments in fiscal 2005 was mainly due to a provision
made for securities transferred from the Available for Sale category to the Held to Maturity category.
Our provision for income tax decreased by 67.08% from Rs. 5,659.15 million in fiscal 2004 to Rs. 1,862.77 million in
fiscal 2005 due to lower profit in fiscal 2005.
Our other provisions increased by 93.06% from Rs. 855.70 million in fiscal 2004to Rs. 1,652.03 million in fiscal 2005. This
increase was partly due to an increase in provision for anticipated employee wage increases for fiscal 2005.

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Our floating provision for NPAs (in addition to norms) decreased significantly, from Rs. 4,212.00 million in fiscal 2004 to
Rs. 28.30 million in fiscal 2005.
Net Profit
As a result of the foregoing factors, our net profit decreased from Rs. 9,669.96 million in fiscal 2004 to Rs. 6,768.40
million in fiscal 2005. As a percentage of total income, our net profit decreased from 12.29% in fiscal 2004 to 8.75% in
fiscal 2005.