Bank of baroda

We are exposed to certain risks of the Indian financial system and could be impacted by the financial difficulties
of other financial institutions in India.
As an Indian bank, we are exposed to the risks of the Indian financial system, which in turn may be affected by
financial difficulties, and other problems faced by Indian financial institutions. As an emerging market system, the
Indian financial system faces risks of a nature and extent not typically faced in developed countries. Additionally, the
credit risk of borrowers in India is higher than in more developed countries. India’s nationwide credit bureau is still
developing, which may affect the quality of information available to us about the credit history of our borrowers,
especially individuals and small businesses.
Certain Indian financial institutions have experienced difficulties during recent years. Some co-operative banks have
also faced serious financial and liquidity crises. The problems faced by individual Indian financial institutions and any
instability in or difficulties faced by the Indian financial system generally could create adverse market perception about
Indian financial institutions and banks. This in turn could adversely affect our business and our future financial performance.
Exchange rate fluctuations may have an impact on our financial performance.
As a financial organization we are exposed to exchange rate risk. Adverse movements in foreign exchange rates may
impact our business, our future financial performance, our shareholders’ funds and the price of our Equity Shares. In
addition, our financial statements are denominated in Rupees while the functional currencies of the international
operations of our Bank and the Subsidiaries are foreign currencies. Accordingly, the financial performance of these
international operations when translated into Rupees may from time to time be adversely impacted by exchange rate
movements.