Bank of baroda

Total Operating Expenses
16,484.40
18,053.03
The primary component of our operating expenses was payments to and provision for employees, which increased from
Rs. 11,285.88 million in fiscal 2003 to Rs. 12,525.22 million in fiscal 2004. As a percentage of total income, payments to
and provision for employees increased slightly from 15.34% in fiscal 2003 to 15.92% in fiscal 2004. The increase was
due to our increased contribution to retirement benefits of employees. We had 40,313 employees as of March 31, 2003
and 39,803 employees as of March 31, 2004. .
Expenses for advertising and publicity increased by 154.74% from Rs. 94.64 million in fiscal 2003 to Rs. 241.09 million
in fiscal 2004. This increase was mainly due to publicity expenses for our new retail lending products.
Other expenditure remained stable at Rs. 1,487.84 million in fiscal 2003 to Rs. 1,475.71 million in fiscal 2004.
Operating Profit
Due to the factors described above, operating profit before provisions and contingencies increased by 44.78% from Rs.
17,166.26 million in fiscal 2003 to Rs. 24,852.90 million in fiscal 2004. As a percentage of total income, our operating
profit increased from 23.33% in fiscal 2003 to 31.60% in fiscal 2004.
Provisions and Contingencies
Provisions and contingencies made in fiscal 2004 increased by 60.86% to Rs. 15,182.93 million compared with Rs.
9,438.42 million in fiscal 2003. The following table sets forth, for the periods indicates, the components of our provisions
and contingencies:
Year ended March 31
2004
2005
(in Rs. million)
Commission, Exchange Brokerage
3,441.17
3,444.48
Provision for Non Performing Advances
3,768.50
5,380.70
Provision for Standard Advances
160.00
3.23
Depreciation on Investments
11.50
(1,014.42)
Provisions for Income Tax
3,977.20
5,659.15
Provision for Restructured Standard Accounts
831.30
86.57
Others
100.02
855.70
Floating Provision for NPAs (in addition to norms)
690.00
4,212.00