Bank of baroda

Total interest income
60975.56
61,470.70
Interest and discount on advances and bills decreased by 8.65% from Rs. 30,662.00 million in fiscal 2003 to Rs.
28,008.28 million in fiscal 2004, reflecting a decrease in the average yield on our advances from 8.88% in fiscal 2003 to
7.76% in fiscal 2004. This decrease was due to market conditions. The decrease in average yield offset a 4.50% increase
in our average advances from Rs. 345,442.60 million in fiscal 2003 to Rs. 360,971.00 million in fiscal 2004.

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BANK OF BARODA
Investment income increased by 8.47% from Rs. 27,032.53 million in fiscal 2003 to Rs. 29,321.76 million in fiscal 2004.
Our average volume of investments increased by 26.40% from Rs. 272,639.50 million in fiscal 2003 to Rs. 344,624.00
million in fiscal 2004 because slow credit resulted in excess funds being invested. Average yield on our investments
decreased from 9.91% in fiscal 2003 to 8.51% in fiscal 2004, reflecting a decline in market rates of interest.
Interest on balances with the RBI and other inter-bank lending decreased by 14.29% from Rs. 2,302.78 million in fiscal
2003 to Rs. 1,973.69 million in fiscal 2004, reflecting a decline in interest rates.
Interest Expense
Our interest expense decreased from Rs. 39,941.91 million in fiscal 2003 and Rs. 35,754.83 million in fiscal 2004, mainly
due to reduction in interest paid on deposits. Interest paid on deposits decreased by 10.88% from Rs. 37,753.75 million
in fiscal 2003 to 33,647.27 million in fiscal 2004. Our total average deposits increased by 7.16% from Rs. 632, 798.00
million in fiscal 2003 to Rs. 678,090.00 million in fiscal 2004. Our average cost of deposits declined from 5.97% in fiscal
2003 to 4.96% in fiscal 2004 due to the maturity of deposits that had been placed with us prior to the decline in interest
rates and the replacement of those deposits and new deposits at lower interest rates.
Average cost of funds decreased from 5.86% in fiscal 2003 to 4.98% in fiscal 2004 mainly due to the decline in the
average cost of deposits.
Our other interest expense increased from Rs. 1,538.02 million in fiscal 2003 to Rs. 1,620.64 million in fiscal 2004 mainly
due to our issuance of Rs. 3,000 million in Tier-II Bonds and the payment of interest thereon.
Other Income
Our other income increased by 36.25% from Rs. 12,617.02 million in fiscal 2003 to Rs. 17,190.07 million in fiscal 2004.
The following table sets forth the components of our other income: