Bank of baroda

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS ON A CONSOLIDATED (UNRESTATED) BASIS
You should read the following discussion and analysis of our financial condition and results of operations together with
our consolidated financial statements included in this Red Herring Prospectus. You should also read the section titled
“Risk Factors” beginning on page xiii, which discusses a number of factors and contingencies that could impact our
financial condition and results of operations. We do not calculate financial performance indicators on a consolidated
basis.
The following discussion relates to the Bank and the Bank’s Subsidiaries on a consolidated basis and is based on our
unrestated consolidated financial statements, which have been prepared in accordance with Indian GAAP and RBI
guidelines.
In this section, references to “we”,” our” and “us” are to the Group (as defined below), unless the context requires
otherwise.
Introduction
Overview
Bank of Baroda (referred to in this section as the “Parent”) is one of India’s leading commercial banks. As of September
30, 2005, the Parent had 2,694 branches in India spread over 27 states and five union territories. In addition, the Parent
and its Subsidiaries (together with the Parent, the “Group”) maintain an international presence in 19 other countries
across the globe. The Subsidiaries operate commercial banking operations in seven countries besides India: the U.K.;
Botswana; Kenya; Uganda; Hong Kong; Guyana; and Tanzania.
In addition to the Group’s commercial banking business, the Subsidiaries are in the following businesses:
Credit card;
Asset management;
Primary dealership, merchant banking and other capital market activities; and
Housing finance.
The Group has grown its business on a consistent basis. Between fiscal 2003 and 2005, our total income grew at a
compounded annual rate of 2.57% and our total assets, total deposits and total advances grew at a compounded annual
growth rate of 11.49%, 11.02% and 10.73%, respectively.