SUBMITTED TO: SUBMITTED BY:

KAWALPREET MAM VIPRANDRA TARUN

10904736

RR 1904 A13
_______________________________________CONTEST
1) HISTORY
2) CHANGE IN SHARE PRICE LAST YEAR IN 2008-09
3) BANK OF BARODA FINANCIALS REPORT
4) CAPITAL ADEQUACY
5) PRUDENTIAL MEASURES
6) RATIOS CALCULATION
7) LIQUIDITY RISK OF COMPANY
8) CREDIT RISK OF THE COMPANY
9) DIVIDEND
10) EARNING & DIVIDEND ANALYSIS
11) BALANCE SHEET
12) RATIO ANALYSIS
13) PROFIT/LOSS A/C
14) BUSINESS PERFORMANCE ACCORDING TO BALANCE SHEET:
15) SEGMENT-WISE PERFORMANCE
16) RESOURCE MOBILISATION & ASSET EXPANSION
17) IPO ISSUES OF BANK OF BARODA
18) BACKGROUND
19) OBJECTS OF THE ISSUE
20) KEY INVESTMENT RATIONALE
21) NEW INITIATIVES TO DRIVE GROWTH
22) RETAIL THRUST
23) TECHNOLOGY – GROWTH ENABLER
24) DE-RISKING OF INVESTMENT PORTFOLIO
25) IMPROVING ASSET QUALITY
26) KEY INVESTMENT CONCERNS
27) FINANCIALS
28) VALUATIONS
29) INTERPRETATION
30) NET PROFIT
31) PERFORMANCE OF INDIAN BANKING SECTOR IN 2008-09
32) BUSINESS AND FINANCIAL METRICS
33) NEWS OF BANK OF BARODA
INTRODUCTION

Bank of Baroda

Bank of Baroda

Public
Type
BSE & NSE:BOB}

Banking
Industry
Capital Markets and allied industries

Founded 1908

Headquarters Bank of Baroda,

Baroda Corporate Centre,
Plot No - C-26, G - Block,
Bandra Kurla Complex
 Mumbai India

Key people M D Mallya, Chairman & Managing Director

Products Loans, Credit Cards, Savings, Investment vehicles etc.

Revenue ▲ Rs. 17754 crores (US$ 3.9 billion)

Total assets Rs. 2,274 bn (US$ 50 billion)

Website www.bankofbaroda.com

Meetings held
Name of the Director Period during the period Meetings attended
of their tenure
Shri M D Mallya 07.05.2008 to 31.03.2009 3 3
Cadre Year ended March
Shri V Santhanaraman 01.04.2008 to 31.03.2009 3 3
2005 2006 2007 2008 2009
Shri S C Gupta 01.04.2008 to 05.11.2008 2 2
Officers
Shri Rajiv Kumar 11,848 12,345 13,636 13,840 13,542
06.11.2008 to 31.03.2009 116,979 1
Clerks
Bakshi 19,284 18,231 15,777 15,485
Sub-staff
Shri A Somasundaram 8,397 8,198
01.04.2008 to 31.03.2009 3 7,989 7,643
3 7,811
Total 39,529 38,774 38,604 37,260 36,838

Area Classification (India) Number of Branches % Share in Total

Metro 637 21.77
Urban 540 18.46
Semi-urban 649 22.18
Rural 1100 37.59
Total 2926 100.00
Overseas 48 100.00

Bank of Baroda Key Data:

Ticker: 532134 Country: INDIA
Exchanges: BOM Major Industry: Financial
Sub Industry: Commercial Banks
183,932,617,000
Employees: 36,838
(Year Ending Jan 2010).
Currency: Indian Rupees Market Cap: 242,583,275,675
 Fiscal Yr Ends: March Shares Outstanding: 364,266,500

Share Type: Ordinary Closely Held Shares: 196,000,000

Shri M.D.Mallya, was appointed by the Central Government as Whole time Director designated as Chairman
and Managing Director w.e.f. 07th May 2008, under section 9(3) (a) of the Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1970.

Shri Rajiv Kumar Bakshi, was appointed by the Central Government as Whole time Director designated as
Executive Director w.e.f. 06th November 2008, under section 9(3) (a) of the Banking Companies (Acquisition
& Transfer of Undertakings) Act, 1970, vice Shri S.C.Gupta who ceased to be a Director on his appointment as
Chairman and Managing Director of United Bank of India.

Shri Amitabh Verma, IAS was nominated by the Central Government as a Director w.e.f. 10th June 2008,
under section 9(3) (b) of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970
representing the Central Government vice Shri G.C. Chaturvedi, IAS who ceased to be a Director on the
nomination of Shri Verma

Smt. Masarrat Shahid nominated by the Central Government under section 9(3) (h) of the Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970, ceased to be a Director w.e.f 14.09.2008 on
completion of her tenure.

Shri Maulin A. Vaishnav nominated by the Central Government under section 9(3) (h) of the Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970, ceased to be a Director w.e.f. 28.11.2008 upon
his resignation.

Dr. Dharmendra Bhandari, Shri Manesh P Mehta and Dr. Deepak B. Phatak representing shareholders
other than Central Government, elected as Directors under section 9(3) (i) of the Banking Companies
(Acquisition & Transfer of Undertakings) Act, 1970, ceased to be Directors w.e.f. 15.11.2008, on completion of
their tenure.

Dr. Dharmendra Bhandari, Dr. Deepak B. Phatak and Shri Maulin A. Vaishnav were elected as Directors from
amongst Shareholders other than Central Government under section 9(3) (i) of the Banking Companies
(Acquisition & Transfer of Undertakings) Act, 1970. The elections were held at the Extra Ordinary General
Meeting of the Shareholders of the Bank held on 23.12.2008 and they assumed office w.e.f. 24.12.2008 for a
period of three years till 23.12.2011.

HISTORY

Bank of Baroda (BSE: 532134) (BoB) (Hindi: बैंक ऑफ़ बड़ौदा) is the third largest Public Sector bank in India,
after State Bank of India and Punjab National Bank. BoB has total assets in excess of Rs. 2.27 lakh crores, or
Rs. 2,274 billion, a network of over 3000 branches and offices, and about 1100+ ATMs. It offers a wide range
of banking products and financial services to corporate and retail customers through a variety of delivery
channels and through its specialised subsidiaries and affiliates in the areas of investment banking, credit cards
and asset management.
Maharajah of Baroda Sir Sayajirao Gaekwad III founded the bank on July 20, 1908 in the princely state of
Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalised on 19
July 1969, by the Government of India.

INTERNATIONAL PRESENCE

Bank of Baroda Building in Dubai

In its international expansion Bank of Baroda followed the Indian diasporas, and especially that of the
Guajarati’s. It has significant international presence with a network of 72 offices in 25 countries, six
subsidiaries, and four representative offices.

Among Bank of Baroda's 42 overseas branches are ones in the world’s major financial centers i.e. New York,
London, Dubai, Hong Kong (which it has upgraded recently), Brussels and Singapore, as well as a number in
other countries. The bank is engaged in retail banking via 17 branches of subsidiaries in Botswana, Guyana,
Kenya, Tanzania, and Uganda. Bank of Baroda also has a joint-venture bank in Zambia with nine branches.
Bank of Baroda maintains representative offices in Malaysia, China, Thailand, and Australia. It plans to
upgrade its offices in China and Malaysia shortly to a branch and joint-venture, respectively.

Bank of Baroda has received permission or in principle approval from host country regulators to open new
offices in Trinidad and Tobago and Ghana, where it is seeking to establish joint ventures or subsidiaries. The
bank has received Reserve Bank of India approval to open offices in the Maldives, and New Zealand. It is
seeking approval for operations in Bahrain, South Africa, Kuwait, Mozambique, and Qatar and is establishing
offices in Canada, New Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its
existing operations in the United Kingdom, the United Arab Emirates, and Botswana.

1908-1958

 1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB).

 1910: BOB established its first branch in Ahmadabad.
 1953: BOB established a branch in Mombasa and another in Kampala.
 1954: BOB opened a branch in Nairobi.
 1956: BOB opened a branch in Dar-es-Salaam.
 1957: BOB established a branch in London.
  1959: BOB acquired Hind Bank.

1960s

 1961: BOB merged in New Citizen Bank of India. This merger helped it increase its branch network in
Maharashtra. BOB also opened a branch in Fiji.
 1962: BOB opened a branch in Mauritius.
 1963: BOB acquired Surat Banking Corporation in Surat, Gujarat.
 1964: BOB acquired two banks, Umbergaon People’s Bank in southern Gujarat and Tamil Nadu
Central Bank in Tamil Nadu state.
 1964: BOB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistan war. It is unclear
when BOB had opened the branch.
 1965: BOB opened a branch in Guyana.
 1967: The Tanzanian government nationalized BOB’s three branches there and transferred their
operations to the Tanzanian government-owned National Banking Corporation.
 1969: The Government of India nationalized 14 top banks, including BOB. BOB incorporated its
operations in Uganda as a 51% subsidiary, with the government owning the rest.

1970s and 1980s

 1972: BOB acquired Bank of India’s operations in Uganda.

 1974: BOB opened a branch each in Dubai and Abu Dhabi.
 1975: BOB acquired the majority shareholding and management control of Bareilly Corporation Bank
(est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bank has
expanded to Uttarakhand State.
 1976: BOB opened a branch in Oman and another in Brussels. The Brussels branch was aimed at Indian
firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a
major centre for diamond cutting.
 1978: BOB opened branch in New York and another in the Seychelles.
 1979: BOB opened a branch in Nassau, the Bahamas.
 1980: BOB opened a branch in Bahrain and a representative office in Sydney, Australia.

 BOB, Union Bank of India and Indian Bank established IUB International Finance, a licensed deposit
taker, in Hong Kong. Each of the three banks took an equal share.

 1985: BOB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian
government; 40%) established Indo-Zambia Bank (Lusaka).
 BOB also opened an Offshore Banking Unit (OBU) in Bahrain.
 1988: BOB acquired Traders Bank, which had a branch network in Delhi.

1990s

 1990: BOB opened an OBU in Mauritius, but closed its representative office in Sydney.
  1991: BOB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S).
P&S’s branch had been established before 1970 and Union Bank’s after 1980. The Reserve Bank of
India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and
subsequent losses.
 1992 BOB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares
quoted on the Nairobi Stock Exchange.
 1993: BOB closed its OBU in Bahrain.
 1996: BOB Bank entered the capital market in December with an Initial Public Offering (IPO). The
Government of India is still the largest shareholder, owning 66% of the bank's equity.
 1997: BOB opened a branch in Durban.

 1998: BOB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a
response to regulatory changes following Hong Kong’s reversion to the People’s Republic of China. The
now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license bank.
 BOB also acquired Punjab Cooperative Bank in a rescue.
 1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64
branches, including four in Delhi.
 In Guyana, BOB incorporated its branch as a subsidiary, Bank of Baroda Guyana.
 BOB added a branch in Mauritius, but closed its Harrow Branch in London.

2000s

 2000: BOB established Bank of Baroda (Botswana).

 2002: BOB acquired Benares State Bank in Benares at the Reserve Bank of India’s request.
 2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE).
 2003: BOB opened an OBU in Mumbai.
 2004: BOB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing a
subsidiary in Dar-es-Salaam. BOB also opened a representative office each in Kuala Lumpur, Malaysia,
and Guangdong, PRC.
 2005: The Reserve Bank of India (RBI), has approved a joint venture between BOB, Bank of
Maharashtra (BOM), and Oriental Bank of Commerce (OBC) to set up a bank in Malaysia. The new
bank will reside in Kuala Lumpur, which has a large population of Indians. The initial capital required
will be US$78 million; BOB will invest 40%, and the other two banks will invest 30% each. The JV is
awaiting approval from the Malaysian Central Bank. Bank has built and commissioned its own State-of-
the-Art Global Data Centre (DC) in Mumbai for running its centralized banking solution(CBS) and other
applications in 1900+ branches across India and 20 other counties where the Bank is operating. BOB
also opened a representative office in Thailand.
 2006: BOB established an off shrore Banking Unit (OBU) in Singapore.
 2007: In its centenary year, BOB's total business crossed 2.09 crores, its branches crossed 1000, and its
global customer base 29 million people.
 2008: BOB opened a branch in Guangzhou, China (02/08/2008).
 2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank
in New Zealand (2009/09/01)
CHANGE IN SHARE PRICE LAST YEAR IN 2008-09

No. Sprea
of Total d Spread
Open High Low Close No.of Trade Turnover High- Close-
Date Price Price Price Price WAP Shares s (Rs.) Low Open
471.118
1-Jan-08 455 478 451.1 474.8 7 116281 2701 54782152 26.9 19.8
485.3 484.071 11068387
2-Jan-08 478 497.4 472.5 5 3 228652 3782 9 24.9 7.35
480.1 490.806 10540413
3-Jan-08 485 501 5 491.1 5 214757 3769 5 20.85 6.1
475.0 487.907
4-Jan-08 491 497 5 481.6 9 113350 3024 55304366 21.95 -9.4
479.9 467.5 468.444 15203184
7-Jan-08 472 5 459.9 5 7 324546 3669 0 20.05 -4.45
460.943
8-Jan-08 467 480 450 452.4 5 130887 3064 60331517 30 -14.6
462.5 458.968 11314664
9-Jan-08 451 474.7 441.5 5 1 246524 4378 4 33.2 11.55
10-Jan- 443.6 459.502
08 460 472 441 5 3 85512 2885 39292961 31 -16.35
11-Jan- 444.1 441.928
08 445 451 436 5 2 101003 2763 44636074 15 -0.85
14-Jan- 461.614
08 452 470 442 467.9 4 153828 3280 71009217 28 15.9
15-Jan- 460.0 470.541
08 477 478 5 462.9 5 103943 2334 48909498 17.95 -14.1
16-Jan- 465.0 457.488
08 454.6 474 445 5 4 106597 2752 48766889 29 10.45
17-Jan- 467.668
08 465 473.1 457 464.1 8 119313 2711 55798965 16.1 -0.9
18-Jan- 446.600
08 460 460 426 437.6 2 175792 3058 78508739 34 -22.4
21-Jan- 385.2
08 430 430 370 5 399.998 198760 3252 79503606 60 -44.75
22-Jan- 370.2 300.0 369.3 361.011 109.9
08 5 410 5 5 8 109756 1609 39623210 5 -0.9
23-Jan- 412.8 398.203
08 400 424.3 365.3 5 7 102129 2730 40668145 59 12.85
24-Jan- 406.3 416.075
08 421 434 393.2 5 8 128364 4051 53409153 40.8 -14.65
25-Jan- 410.1 420.3 432.310
08 416 444.2 5 5 8 143322 3757 61959649 34.05 4.35
28-Jan- 429.9
08 403.2 444 385 5 430.059 147311 4525 63352423 59 26.75
29-Jan- 407.7
08 439.8 444.9 405.2 5 421.137 143937 3589 60617202 39.7 -32.05
30-Jan- 399.531
08 412 418 385 391.3 4 198482 5449 79299783 33 -20.7
31-Jan- 391 399.9 380.1 388.9 390.448 148943 3413 58154629 19.75 -2.1
 08 5 9
1-Feb- 405.7 396.745
08 392 413.5 381 5 1 113961 3401 45213468 32.5 13.75
4-Feb- 416.0 11515969
08 415 428 409 5 420.113 274116 4580 2 19 1.05
5-Feb- 420.978
08 414.4 427 410 419.9 3 116265 3503 48945043 17 5.5
6-Feb- 404.6 405.374
08 400.1 409 390 5 6 133170 3055 53983734 19 4.55
7-Feb- 406.338
08 406.5 419 390 393.4 9 205726 4435 83594484 29 -13.1
8-Feb- 395.8
08 5 403 383 386.1 389.503 163574 3539 63712567 20 -9.75
9-Feb- 364.711
08 384 386 354 364.9 2 215296 3347 78520872 32 -19.1
10- 354.1 361.6 369.431
Feb08 370 381 5 5 9 108924 2651 40240003 26.85 -8.35
11-
feb08 365 388 365 381.7 374.782 131140 2779 49148916 23 16.7
398.7 392.967
12feb08 387 401 385 5 3 68903 3021 27076627 16 11.75
411.8 402.851
13feb08 390 416 382 5 9 142098 3200 57244449 34 21.85
427.7 426.422
14feb08 413 432 412.5 5 6 223090 3591 95130627 19.5 14.75
405.7 415.128 12524372
15feb08 430 434.8 402.2 5 1 301699 5991 9 32.6 -24.25
399.053
16feb08 400 404.5 387 401 7 192509 4788 76821423 17.5 1
17feb08 410 412 376.5 380.2 387.637 232786 5856 90236457 35.5 -29.8
18feb08 377 382.9 367.1 377.5 374.384 179373 4823 67154385 15.8 0.5
375.4 19438901
19feb08 385 385 366.5 5 371.055 523882 3458 9 18.5 -9.55
372.4 376.422
20feb08 374.1 381.9 5 375.6 1 103528 2417 38970223 9.45 1.5
369.8 375.828
21feb08 381 383 368 5 6 134533 3485 50561355 15 -11.15
369.8 357.1 27083591
22feb08 5 375 353.6 5 358.106 756301 6062 1 21.4 -12.7
341.2 365.7 356.343 29212078
23feb08 358 369.9 5 5 9 819772 11389 0 28.65 7.75
3-Mar- 339.4 347.167
08 360 360 336 5 9 222484 6368 77239300 24 -20.55
4-Mar- 332.230
08 340 347 315 333.2 3 234223 6969 77815972 32 -6.8
5-Mar- 311.5 319.157 19347403
08 331 331 309 5 7 606202 10358 3 22 -19.45
7-Mar-
08 303 306 285.5 299.2 292.991 279001 4773 81744793 20.5 -3.8
9mar08 295 313.4 278 293.8 295.645 550629 8517 16279122 35.4 -1.15
 5 9 3
304.0 302.457
10mar08 291 308 287 5 3 179703 4441 54352478 21 13.05
292.3 306.210
12mar08 312 322 286 5 6 294490 6708 90175955 36 -19.65
13Mar0 282.237
8 285 291.5 270.1 273.4 1 220573 4969 62253886 21.4 -11.6
289.8 280.252
14mar08 275 5 270.4 287.7 4 224854 4884 63015881 19.45 12.7
255.5 277.121
17mar08 273 283 5 277.3 5 216678 4705 60046132 27.45 4.3
278.1 273.301
20mar08 272 284 262 5 9 254608 5111 69584859 22 6.15
281.107 14987138
21mar08 285 298.4 262 271.2 6 533146 5450 8 36.4 -13.8
273.6
22mar08 274 279.4 264 5 269.937 121332 2150 32751999 15.4 -0.35
277.1 277.1 290.060
24mar08 5 305 5 299.3 5 272879 5275 79151428 27.85 22.15
292.7 295.709
26mar08 302 305 290.5 5 3 181805 3825 53761436 14.5 -9.25
290.7 289.452
28mar08 285 295 283 5 3 191834 3144 55526801 12 5.75
29mar08 275 305 275 301.3 293.701 123054 3643 36141078 30 26.3
282.1 290.026
30mar08 304 304.8 5 283.9 4 162953 3378 47260673 22.65 -20.1
1-Apr- 290.2
08 282 295 277 5 284.433 176261 3218 50134437 18 8.25
2-Apr- 293.7 292.920 14103802
08 300 305.9 288.1 5 6 481489 4890 5 17.8 -6.25
3-Apr- 289.681
08 297 300.2 281.2 283 9 199020 3758 57652498 19 -14
4-Apr- 270.3 276.193
08 286.3 288 269 5 9 218547 4521 60361353 19 -15.95
7-Apr- 283.1 278.423
08 274.5 285 267 5 2 214018 3951 59587566 18 8.65
8-Apr- 287.9 280.1 281.843
08 277 5 277 5 2 265717 4735 74890534 10.95 3.15
9-Apr- 295.9 289.183
08 280 5 276.6 294.1 5 197316 4348 57060525 19.35 14.1
295.252
12apr08 295 298.5 289 291.7 1 232818 4188 68739992 9.5 -3.3
295.9 288.1 294.7 292.767
14apr08 5 297 5 5 3 164909 3683 48279964 8.85 -1.2
296.4 293.0 293.949
16apr08 286 5 286 5 7 128565 2717 37791649 10.45 7.05
286.7 294.182
17Apr08 294 298 5 289.7 7 78078 2282 22969194 11.25 -4.3
299.0 298.392
18Apr08 294.7 302 292.3 5 8 219786 4314 65582554 9.7 4.35
24Apr08 300 311.2 295 310 305.343 188804 3666 57650039 16.25 10
 5 3
314.879
24Apr08 310 320 309 313.2 4 217384 4429 68449744 11 3.2
309.520
25apr08 314 316.5 305 306.5 2 103020 3009 31886776 11.5 -7.5
301.2 303.994
26Apr08 307 314 291.3 5 8 176511 3899 53658432 22.7 -5.75
313.9 309.8 309.329
27Apr08 303 5 303 5 9 151682 3774 46919776 10.95 6.85
307.0 307.925
28Apr08 315 315 305.3 5 6 87274 3039 26873903 9.7 -7.95
315.754
29Apr08 308 320.9 304.9 314.8 5 262694 6126 82946815 16 6.8
315.0 315.1 317.361
30Apr08 5 320.9 313 5 6 167091 4349 53028273 7.9 0.1
2-May- 323.696
08 320 328.9 315 320.1 3 253414 5867 82029183 13.9 0.1
5-May- 322.0 320.0 323.849
08 5 329.9 318.1 5 9 214870 4529 69585625 11.8 -2
6-May- 320.1 327.8 319.1 325.3 324.641 12499941
08 5 5 5 5 8 385038 3866 5 8.7 5.2
7-May- 317.5 320.401
08 324 325 316.6 5 8 86026 2220 27562883 8.4 -6.45
8-May- 300.0 303.359
08 316.9 317 298.5 5 3 234826 3968 71236662 18.5 -16.85
9-May- 293.5
08 298 302.9 291 5 298.03 156683 3938 46696239 11.9 -4.45
10May0 292.5 291.7 288.534
8 5 295.4 284.1 5 7 97371 3024 28094910 11.3 -0.8
12May0 296.662
8 295 301 294 295.1 8 78926 2571 23414411 7 0.1
14may0 292.5 291.038
8 5 297.5 286 287.5 8 103984 2610 30263380 11.5 -5.05
16May0 290.0 292.0 291.873
8 5 294.9 290 5 2 103262 1841 30139412 4.9 2
18May0 295.4 295.450
8 294 298.7 292.1 5 3 206975 3441 61150818 6.6 1.45
20May0 298.334 14502467
8 296.4 305.3 290.1 291.9 7 486114 8783 2 15.2 -4.5
22may0 291.3 289.686
8 291.1 293 285 5 7 219031 4548 63450362 8 0.25
24May0 290.3 288.4 286.212
8 5 293.5 283 5 5 199607 4326 57130020 10.5 -1.9
26May0 295.4 288.841
8 291.1 5 283.1 285.3 6 186145 4241 53766426 12.35 -5.8
27May0 274.9 277.299
8 280.3 285 272 5 3 123161 2875 34152454 13 -5.35
28May0 279.9 261.7 268.610
8 5 281 260.1 5 8 215510 4999 57888321 20.9 -18.2
29May0 269.1 260.694
8 259.5 272 254.2 5 1 322403 5952 84048560 17.8 9.65
30May0 269.9 276.9 265.1 273.2 270.439 170904 3951 46219252 11.75 3.3
 8 5 8
270.0 271.281
1Jun08 277.2 277.2 266.1 5 1 80739 2776 21902967 11.1 -7.15
265.993
2-Jun-08 271 273.8 257 259.9 7 157708 3792 41949327 16.8 -11.1
250.427
3-Jun-08 255 255 246.3 247.9 8 180771 3648 45270087 8.7 -7.1
240.0 247.165
4-Jun-08 249 253.5 5 241.6 3 128803 3137 31835626 13.45 -7.4
234.2 235.9 237.580
5-Jun-08 241 243 5 5 4 140200 3085 33308779 8.75 -5.05
228.6 232.854
6-Jun-08 239.9 241.9 226.2 5 1 266882 5539 62144564 15.7 -11.25
211.1 223.3 219.456
9-Jun-08 220 225 5 5 5 156267 3918 34293812 13.85 3.35
10-Jun- 218.5 219.368
08 222 228 215 5 5 141604 3851 31063453 13 -3.45
11-Jun- 228.4 225.575
08 219 230 219 5 8 139684 3414 31509334 11 9.45
12-Jun- 236.4 229.852
08 224 238.5 215 5 1 227118 5273 52203541 23.5 12.45
13-Jun- 231.7 234.167
08 238.9 239.8 230.1 5 8 146631 3139 34336263 9.7 -7.15
16-Jun- 245.4 241.0 241.458
08 234 5 234 5 4 131539 2924 31761197 11.45 7.05
17-Jun- 251.169
08 242 258.4 239.1 255.2 1 314897 5636 79092386 19.3 13.2
18-Jun- 244.0 245.2 251.264
08 258 259.5 5 5 1 170458 3607 42829982 15.45 -12.75
19-Jun- 240.042
08 240 243 237.5 240.2 8 83420 2275 20024371 5.5 0.2
20-Jun- 224.1 230.244
08 241 242.9 5 225.2 3 139062 3502 32018230 18.75 -15.8
23-Jun- 211.0 215.784
08 224.5 224.5 5 212.2 7 217744 4064 46985823 13.45 -12.3
24-Jun- 210.6 213.347
08 213.5 218.6 209 5 2 165672 3850 35345657 9.6 -2.85
25-Jun- 213.9 212.3 209.023
08 202 5 200 5 1 266001 5228 55600350 13.95 10.35
26-Jun- 218.9 211.1
08 215 5 209.1 5 214.863 274242 4623 58924462 9.85 -3.85
27-Jun- 205.8 206.494
08 204 209.5 202 5 2 151883 3212 31362961 7.5 1.85
30-Jun- 203.2 203.657
08 203 209 199.3 5 4 183394 3301 37349547 9.7 0.25
199.184
1-Jul-08 203.5 206 192.1 195.2 7 145616 3145 29004481 13.9 -8.3
198.932
2-Jul-08 197 207 188.3 205.2 8 210920 4406 41958897 18.7 8.2
197.5 210.8 205.206
3-Jul-08 200 216 5 5 1 452958 5168 92949756 18.45 10.85
4-Jul-08 209 213 202 208.5 207.679 249323 5026 51779258 11 -0.5
 4
210.4 210.1 215.054
7-Jul-08 5 218.9 5 211.7 4 186457 3572 40098404 8.75 1.25
207.4 216.5
8-Jul-08 5 219.9 201.5 5 211.237 206289 3815 43575862 18.4 9.1
219.9 220.1 221.490
9-Jul-08 5 225.9 219 5 8 214198 3051 47442879 6.9 0.2
10-Jul- 217.5 218.772
08 220 224 215.5 5 8 150912 2221 33015436 8.5 -2.45
11-Jul- 211.9 213.6 217.044
08 222 224.1 5 5 1 191988 3437 41669861 12.15 -8.35
14-Jul- 213.6 210.5 215.595
08 5 218.8 5 215.4 2 99915 3068 21541199 8.25 1.75
15-Jul- 206.8 208.6 209.960
08 211.9 214 5 5 3 124578 2815 26156431 7.15 -3.25
16-Jul- 208.6 205.5 209.981
08 5 216 5 212.2 9 153212 2947 32171742 10.45 3.55
17-Jul- 206.1 208.8 210.399
08 215 217 5 5 9 211026 4150 44399859 10.85 -6.15
18-Jul- 215.9 214.529
08 210.5 218 209.9 5 1 272179 4363 58390324 8.1 5.45
21-Jul- 230.9 225.788
08 219 234 219 5 1 328859 6171 74252438 15 11.95
22-Jul- 243.6 241.365
08 222 245.7 222 5 2 251215 5585 60634568 23.7 21.65
23-Jul- 263.3 260.004
08 254.7 266 254.7 5 5 344955 4837 89689841 11.3 8.65
24-Jul- 268.1 258.097
08 5 270 250 252.1 4 261195 4811 67413754 20 -16.05
25-Jul- 252.2
08 248 258 240 5 249.579 227860 4611 56869078 18 4.25
28-Jul-
08 249 255.9 243 251.3 249.037 163669 4543 40759633 12.9 2.3
29-Jul- 227.3 235.947
08 247 252.5 225.1 5 3 389440 8094 91887304 27.4 -19.65
30-Jul- 248.3 243.896
08 234.9 251.8 231.4 5 8 377773 7119 92137620 20.4 13.45
31-Jul- 250.467
08 252 262 242.1 255.5 5 349815 7638 87617300 19.9 3.5
1-Aug- 264.145 13921586
08 251 280 245 275.9 2 527043 9883 1 35 24.9
4-Aug- 280.352
08 273 284.7 271 278.3 5 312259 7204 87542594 13.7 5.3
5-Aug- 298.7 290.040 15208293
08 272 300 271 5 9 524350 9514 7 29 26.75
6-Aug- 293.525 21524267
08 295 309.5 278 281 3 733302 12112 8 31.5 -14
7-Aug- 283.5 284.902
08 280 290 280 5 5 292647 6132 83375867 10 3.55
8-Aug- 282.160
08 278 289 275.5 285.8 1 292847 6757 82629733 13.5 7.8
10Aug0 292 298.9 291.9 296.2 296.526 223151 4147 66170119 7 4.2
 8 2
12Aug0 287.746
8 300 300 282 284.4 1 206982 4095 59558255 18 -15.6
14Aug0 276.233 10311931
8 280 285 269 271.3 4 373305 6596 6 16 -8.7
16Aug0 254.6 259.302 11332180
8 268 272 251.1 5 2 437026 6796 2 20.9 -13.35
18Aug0 255.988
8 253 260.9 249 258.6 5 350796 6312 89799734 11.9 5.6
20Aug0 261.8
8 254 5 252.4 258.6 255.724 215626 4174 55140753 9.45 4.6
22Aug0 260.905
8 263 266 256.1 257.9 9 157119 3262 40993271 9.9 -5.1
24Aug0 258.0 252.8 253.136
8 258 5 249.6 5 1 176189 3131 44599795 8.45 -5.15
26Aug0 252.731
8 249.5 256.3 247 254.1 8 171561 4579 43358917 9.3 4.6
27Aug0 266.8 264.0 263.974
8 257 5 257 5 9 207068 5161 54660764 9.85 7.05
28Aug0 273.2 271.8 267.945
8 261 5 259.5 5 4 368621 7044 98770318 13.75 10.85
29Aug0 269.3 272.333
8 273.7 275 268 5 3 271423 5498 73917514 7 -4.35
30Aug0 266.6 266.6 271.822
8 5 277.5 5 273.6 8 264348 4861 71855808 10.85 6.95
31Aug0 283.641
8 277 286 276.5 284.3 1 308254 6205 87433508 9.5 7.3
1-Sep- 270.1 284.226
08 282 294.5 5 289.9 9 302296 5913 85920659 24.35 7.9
2-Sep- 303.3 296.904 17814043
08 292 5 289.6 299.7 7 599992 10001 1 13.75 7.7
4-Sep- 300.112 12995523
08 297 307.1 292.1 302.4 3 433022 8777 2 15 5.4
5-Sep- 303.9 294.4 298.542 11244080
08 297 5 292.3 5 1 376633 7471 0 11.65 -2.55
8-Sep- 309.8 300.3 301.740
08 303 5 297.6 5 5 220864 4442 66643605 12.25 -2.65
9-Sep- 290.0 293.2 292.559
08 296 300 5 5 7 308536 5089 90265213 9.95 -2.75
306.248 110530 33849875
10Sep08 290 311.9 287 309.6 1 9 14912 1 24.9 19.6
309.2 309.210 25534474
12Sep08 306 313.9 303.5 5 8 825795 13010 5 10.4 3.25
305.4 311.140 24672925
14Sep08 310.2 316 5 309.8 7 792983 10470 2 10.55 -0.4
290.0 302.0 295.806 15973836
16Sep08 303 305 5 5 3 540010 7337 8 14.95 -0.95
316.5 308.974 26102732
17Sep08 290 322 287.3 5 3 844819 14854 9 34.7 26.55
314.379 31062824
18Sep08 318 322.4 306 309.4 1 988069 14507 0 16.4 -8.6
20Sep08 290.5 329.7 290.5 327.3 312.771 781622 14796 24446885 39.15 36.8
 5 5 5 2 8
320.2 323.8 324.928 103027 33476578
22Sep08 335 338 5 5 9 4 14088 6 17.75 -11.15
329.7 304.2 316.767 21056018
23Sep08 328 5 5 307 6 664715 10766 9 25.5 -21
304.173 16957848
24Sep08 303 311 295.6 304.6 4 557506 10549 8 15.4 1.6
298.3 303.336 13255593
25Sep08 306 308.6 5 300.8 5 436993 6841 4 10.25 -5.2
300.374
26Sep08 300.8 306.5 295.5 303.6 7 331072 6094 99445654 11 2.8
303.9 296.056 15667292
27Sep08 5 306 290 293 7 529199 7879 8 16 -10.95
287.2 288.073 17131668
29Sep08 295 295.3 282.5 5 9 594697 6693 9 12.8 -7.75
279.9 297.5 291.251
30Sep08 5 300 271 5 3 287464 6749 83724264 29 17.6
1-Oct- 301.0 314.8 305.098 15738519
08 5 5 290 311 2 515851 11091 1 24.85 9.95
3-Oct- 305.281 10718928
08 310 315.8 295.6 297.1 7 351116 8708 1 20.2 -12.9
6-Oct- 286.4 289.914
08 292.9 296 5 290.5 8 323194 6382 93698730 9.55 -2.4
7-Oct- 296.368 15217081
08 292.9 306.9 285.2 289.8 7 513451 8789 2 21.7 -3.1
8-Oct- 282.9 277.183
08 283 288.4 265.4 5 4 347649 7067 96362525 23 -0.05
10-Oct- 288.7 277.555 16899913
08 270 5 252 278.6 1 608885 7861 9 36.75 8.6
13-Oct- 307.7
08 284.5 310 283 5 296.941 258682 6002 76813292 27 23.25
14-Oct- 316.600 16758090
08 322.4 330 307 309.1 8 529313 6926 6 23 -13.3
15-Oct- 304.9 309.419 12907153
08 5 316.8 298.4 305.2 4 417141 9649 5 18.4 0.25
16-Oct- 307.014 18524871
08 305 321 288 316.6 8 603387 10966 4 33 11.6
17-Oct- 326.9 304.0 316.608 16493672
08 320 5 300.1 5 8 520948 10707 1 26.85 -15.95
20-Oct- 304.2 312.5 11441187
08 5 320 295 5 309.846 369254 9054 4 25 8.3
21-Oct- 304.0 309.5 310.906
08 315 318 5 5 5 296030 7534 92037657 13.95 -5.45
22-Oct- 278.5 283.1 292.249 11289094
08 303 310.6 5 5 3 386283 8702 7 32.05 -19.85
23-Oct- 273.5 274.435
08 274 288 268.8 5 2 355249 7675 97492835 19.2 -0.45
24-Oct- 271.9 230.2 245.3 10417196
08 270 5 5 5 251.597 414043 9298 7 41.7 -24.65
27-Oct- 224.728
08 235 247.9 215.1 227.9 7 307779 7292 69166785 32.8 -7.1
28-Oct- 240 240 231 233.2 233.331 41899 1496 9776370 9 -6.75
 08 5 8
29-Oct-
08 240 247 223.4 241.6 237.029 292853 6776 69414665 23.6 1.6
31-Oct- 247.187
08 243 256.5 237 241.7 6 349198 7153 86317407 19.5 -1.3
3-Nov- 244.0 249.580
08 251 256 5 248.2 2 276149 5855 68921333 11.95 -2.8
4-Nov- 243.4 286.6 267.373 13101829
08 245.1 293.7 5 5 4 490020 10849 5 50.25 41.55
5-Nov- 289.419 10700169
08 295 299 278 280.1 8 369711 8339 0 21 -14.9
6-Nov- 265.0 265.0 275.5 275.265 14760389
08 5 292 5 5 4 536224 8970 1 26.95 10.5
7-Nov- 292.6
08 275 299.5 272 5 281.762 330297 8654 93065150 27.5 17.65
297.381
8Nov08 301.7 301.7 292.7 298.1 9 228116 6138 67837579 9 -3.6
10Nov0 287.254
8 296 300 281 284.7 9 145841 4798 41893544 19 -11.3
12Nov0 282.3 282.685 11656926
8 281.5 290 277.5 5 4 412364 6046 9 12.5 0.85
14Nov0 276.5 278.366 15164481
8 288.8 290 274.7 5 9 544766 4838 9 15.3 -12.25
16Nov0 260.0 270.9
8 277 280 5 5 268.112 162674 4327 43614859 19.95 -6.05
18Nov0 261.222
8 267 271 253.6 263.8 3 214664 5042 56075023 17.4 -3.2
20Nov0 270.9
8 264 5 258.1 263.7 263.335 301261 5262 79332569 12.85 -0.3
22Nov0 255.332
8 258 270 248.9 259.6 6 383930 5891 98029834 21.1 1.6
24Novo 267.5 261.899
8 265 272.5 253.5 5 7 276117 6801 72314968 19 2.55
26Nov0 272.2 251.4 259.273
8 264.1 5 5 255 1 283887 6150 73604255 20.8 -9.1
28Nov0 253.137
8 260 265 240 242.3 1 272065 7052 68869749 25 -17.7
29Nov0 244.0 235.2 253.6 243.860
8 5 255.5 5 5 1 346701 8616 84546550 20.25 9.6
30Nov0 246.3 257.8 255.754
8 250 261.3 5 5 8 186105 5783 47597252 14.95 7.85
1-Dec- 254.472
08 259 264 243.6 245.7 4 195093 5615 49645791 20.4 -13.3
2-Dec- 238.711
08 240 246 232.5 243.7 8 209278 6451 49957129 13.5 3.7
3-Dec- 252.4 248.7 248.278
08 245 5 241.2 5 8 304991 6672 75722813 11.25 3.75
4-Dec- 253.2 250.476
08 252 5 242.1 252.1 7 396837 7486 99398440 11.15 0.1
5-Dec- 245.6 247.6 252.515
08 252 258.9 5 5 6 249789 7253 63075612 13.25 -4.35
8-Dec- 253 258 249 252.8 252.747 238827 4670 60362944 9 -0.15
 08 5 6
12Dec0 249.2 250.914
8 252 256 247.2 5 7 309883 5219 77754199 8.8 -2.75
14Dec0 250.0 254.4
8 5 5 248.1 251.7 251.877 359452 5888 90537700 6.35 1.65
16Dec0 244.0 256.0 253.462
8 247 258 5 5 3 257259 4995 65205453 13.95 9.05
17Dec0 260.5 256.7 260.2 262.984
8 5 265.6 5 5 6 198679 4598 52249519 8.85 -0.3
18Dec0 264.958
8 261 268.4 255.2 264.9 1 173784 4175 46045487 13.2 3.9
20Dec0 264.0 266.357 11446551
8 270.3 273.1 262 5 4 429744 6372 0 11.1 -6.25
22Dec0 270.170
8 265 275.9 263.5 274.9 5 255312 5659 68977779 12.4 9.9
23Dec0 276.9 278.300
8 5 282.4 272.5 274.8 7 256286 6047 71324579 9.9 -2.15
24Dec0 287.4 280.845
8 276 5 273 276.6 2 286129 5577 80357953 14.45 0.6
25Dec0 277.1 262.321
8 275 5 257.4 260.6 1 295948 5421 77633401 19.75 -14.4
26Dec0 268.5 267.582
8 262 272.5 255.5 5 4 325449 6768 87084440 17 6.55
28Dec0 274.9 268.127
8 270 5 260 262.9 2 138913 4715 37246352 14.95 -7.1
29Dec0 252.7
8 264 267.7 5 266.6 262.182 166787 5369 43728544 14.95 2.6
30Dec0 271.150
8 268 277.9 262.6 274.9 5 207161 5488 56171807 15.3 6.9
31Dec0 280.4 276.858
8 279.9 283.5 270 5 8 209641 5172 58040951 13.5 0.55
278.1 284.7 283.901
1-Jan-09 283.1 286.8 5 5 9 141404 3983 40144864 8.65 1.65

BANK OF BARODA FINANCIALS REPORT

 Sales Rs. 17,754 crores

 Profits Rs. 2,227 crores
 Assets Rs. 2,27,406 crores
Capital Structure of Last Years
From To Class Of Authorized Issued Paid Up
Paid Up Face Value Paid Up Capital
Year Year Share Capital Capital Shares (Nos)

Equity
2008 2009 1,500.00 367.00 364266500 10 364.27
Share

Equity
2007 2008 1,500.00 367.00 364266400 10 364.27
Share

Equity
2006 2007 1,500.00 367.00 364266000 10 364.27
Share

Equity
2005 2006 1,500.00 367.00 364265500 10 364.27
Share

CAPITAL ADEQUACY

The Bank’s Capital Adequacy is comfortable at 14.05% under Basel II on 31st March 2009. During the year,
the Bank strengthened its capital-base by raising Rs 1,500 crore through unsecured subordinated bonds and Rs
300.20 crore through innovative perpetual bonds.

The Bank’s Net Worth as at 31st March 2009 was Rs 11,387.19 crore comprising of paid-up equity capital of
Rs 363.53 crore and reserves (excluding revaluation reserves) of Rs 11,021.67 crore. An amount of Rs 1,843.65
crore was transferred to reserves from the profits earned.

PRUDENTIAL MEASURES

As a prudent measure, the Bank has made provision towards contribution to gratuity (Rs 38.60 crore), pension
funds (Rs 435 crore), leave encashment (Rs 37 crore) and additional retirement benefits (Rs 40 crore) on
actuarial basis. Total provisions under these four categories amounted to Rs 550.60 crore during the year 2008-
09, against Rs 421.43 crore during 2007-08. Total corpus available with the Bank at end March 2009 under
these heads is: Rs 794.57 crore (gratuity), Rs 2,629.00 crore (pension funds), Rs 300.40 crore (leave
encashment), and Rs 278.80 crore (additional retirement benefits).
RATIOS CALCULATION OF LAST 6 YEAR
 
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Per share ratios
Adjusted EPS (Rs) 61.14 39.40 27.83 28.84 23.08
Adjusted cash EPS (Rs) 67.47 45.77 33.16 31.89 25.87
Reported EPS (Rs) 61.14 39.41 28.18 22.70 23.08
Reported cash EPS (Rs) 67.47 45.78 33.51 25.75 25.87
Dividend per share 9.00 8.00 6.00 5.00 5.00
Operating profit per share (Rs) 82.98 57.48 42.41 22.10 31.70
Book value (excl rev res) per share (Rs) 352.37 303.18 237.46 215.35 191.90
Book value (incl rev res) per share (Rs.) 352.37 303.18 237.46 215.35 191.90
Net operating income per share (Rs) 455.85 360.56 262.13 200.24 228.86
Free reserves per share (Rs) 208.73 180.73 162.88 150.04 119.84
Profitability ratios
Operating margin (%) 18.20 15.94 16.17 11.03 13.85
Gross profit margin (%) 16.81 14.17 14.14 9.51 12.63
Net profit margin (%) 12.86 10.38 10.22 10.76 9.77
Adjusted cash margin (%) 14.19 12.06 12.03 15.12 10.95
Adjusted return on net worth (%) 17.35 12.99 11.71 13.39 12.02
Reported return on net worth (%) 17.35 12.99 11.86 10.54 12.02
Return on long term funds (%) 103.70 91.52 81.71 66.45 76.67
Leverage ratios
Long term debt / Equity - - - - -
Total debt/equity 14.99 13.77 14.44 11.94 14.45
Owners fund as % of total source 6.25 6.77 6.47 7.72 6.47
Fixed assets turnover ratio 4.20 3.47 4.25 3.89 3.93
Liquidity ratios
Current ratio 0.27 0.34 0.61 0.56 0.67
Current ratio (inc. st loans) 0.02 0.02 0.03 0.03 0.04
Quick ratio 9.62 9.56 11.29 9.49 8.28
Inventory turnover ratio - - - - -
Payout ratios
Dividend payout ratio (net profit) 17.22 23.75 24.59 25.11 24.66
Dividend payout ratio (cash profit) 15.60 20.44 20.68 22.13 22.00
Earning retention ratio 82.78 76.25 75.10 80.23 75.34
Cash earnings retention ratio 84.40 79.55 79.10 82.12 78.00
Coverage ratios
Adjusted cash flow time total debt 78.28 91.19 103.42 80.64 107.21
Financial charges coverage ratio 1.37 1.35 1.37 1.31 1.33
Fin. charges cov.ratio (post tax) 1.25 1.21 1.22 1.24 1.22
Component ratios
Material cost component (% earnings) - - - - -
Selling cost Component 0.24 0.25 0.26 0.35 0.15
Exports as percent of total sales - - - - -
Import comp. in raw mat. Consumed - - - - -
  
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Long term assets / total Assets 0.92 0.91 0.87 0.90 0.90
Bonus component in equity capital (%) - - - - -
Ratio analysis:

1. Current ratio; in this ratio a comparison is made between current assets and current liabilities. this ratio
show that how much our current assets are more than our current liabilities.

current ratio=current assets ¿ libilities

Golden role: 2:1 Its means that if the current assets are double of current liabilities than the ratio is
considered satisfactory.

In year 2009

Current ratio= 0.27

In year 2008 Current ratio= 0.34

That’s means company have more current assets of the current liabilities .and company have a good
financial position

2. Quick assets ratio: liquid, quick, acid test ratio is that raito in which a compression is made between
quick assets and current liabilities.

Quick assets ratio= quick assets\current liabilities

In year 2009

Quick assets ratio=9.62

In year 2008

Quick assets test ratio=9.56

That’s means that company has more quick assets to the current liabilities. And companies easily face any
future loss.

3) Working turnover ratio capital ratio: working capital turnover ratio is that ratio which shows the
efficiency with which working capital has been used in business. Ratio shows the efficiency of working capital
in making sales of business.
Working turnover ratio= net sales\ working capital

Working capital=C.A- C.L

After calculating and analyzing the ratio I reach that Point Company have a very good
position and this company stay in this industry forever and can beat competitor easily and this organization
good for investor.

LIQUIDITY RISK OF COMPANY

Liquidity risk is the risk that the Bank either does not have the financial resources available to meet all its
obligations and commitments as they fall due or has to access these resources at excessive cost. During the
second and third quarters of 2008-09, Indian market line with the global financial market, exhibited high level
of volatility causing liquidity stress to the market participants. The Indian Government as well as the Reserve
Bank of India introduced various economic and monetary measures to inject liquidity into the financial system.
As a result, the financial system exhibited a fair level of stability at the end of the year under review.

The Bank’s ALCO has the overall responsibility to monitor liquidity risk of the Bank. The liquidity risk is
measured by flow approach on a daily basis through Structural Liquidity Gap reports and on a dynamic basis by
Dynamic Gap reports on fortnightly basis for the next three months. Under Stock Approach, the Bank has
established a series of caps on activities such as daily call lending, daily call borrowings, net short term
borrowings and net credit to customer deposit ratio and prime asset ratio, etc. The Asset Liability Management
(ALM) Cell, working in the Risk Management Department reviews the liquidity position on a daily basis to
ensure that the negative liquidity gap does not exceed the tolerance limit in the respective time buckets.
Specialized Integrated Treasury Branch, Mumbai assesses the domestic liquidity in respect of all foreign
currency exposures. In respect of overseas operations, each territory assesses its currency wise liquidity position
at prescribed intervals. The funding requirements in case of contingencies are also examined at regular intervals
to keep the Bank ready to meet any crisis scenario.

The Bank has managed its liquidity by prudent diversification of the deposit base, control on the level of bulk
deposit, and ready access to wholesale funds under normal market conditions. The Bank has significant level of
marketable securities, which can be sold, repaid, or used as collateral in case of need.

Credit Risk of the company

Credit Risk is the risk that the counterparty to a financial transaction will fail to discharge an obligation
resulting in a financial loss to the Bank. Credit risk management processes involve identification, measurement,
monitoring and control of credit exposures.

In order to provide clarity to the operating functionaries, the Bank has various policies in place such as
Domestic Loan Policy, Off-Balance Sheet Exposure Policy, etc, wherein the Bank has specified various
prudential caps for credit risk exposures. The Bank also conducts industry studies to assess the risk prevalent in
industries where the Bank has sizable exposure and also for identification of sunrise industries. The industry
reports are communicated to the operating functionaries to consider the same while lending to these industries.

The Bank has adopted various credit rating models to measure the level of credit risk in a specific loan
transaction. The Bank uses a robust rating model developed to measure credit risk for majority of the business
loans (non personal loans). The rating model has the capacity to estimate probability of default (PD), Loss
Given Default (LGD) and unexpected losses in a specific loan asset.
Apart from estimating PD and LGD, the credit rating model will also help the Bank in several other ways as
under.

 To migrate to Rating Based Approaches of computation of Risk Weighted Assets

 To price a specific credit facility considering the inherent credit risk.

 To measure and assess the overall credit risk and to evolve a desired profile of credit risk.

Apart from assessing credit risk at the counterparty level, the Bank has appropriate processes and systems to
assess credit risk at portfolio level. The Bank undertakes portfolio reviews at regular intervals to improve the
quality of the portfolio or to mitigate the adverse impact of concentration of exposures to certain borrowers,
sectors or industries.

DIVIDEND
Year Month Dividend (%)
2010 Apr 150
2009 Apr 90
2008 May 80

Calenda EARNINGS PER SHARE DIVIDEND PER SHARE

r year

12 month Quarterly reported earning 12 month %

Earning %change Q1 Q2 Q3 Q4 dividend %change Q1 Q2 Q3 Q4 Pay

MAR JUN SEP DEC MAR JUN SEP DEC out

1995 0.057 -97.0% 0.476 0.542 0.102 1.064 0.641 0.0% 0.210 0.210 0.210 0.210 0.0%

1996 2.534 5693.0 0.542 0.586 0.567 0.840 A n/a -100.0% 0.210 0.210 0.210 0.293 35.9%

1997 2.650 -20.2 0.644 0.55 0.700 0.756 A 1.232 A/C 0.308 0.308 0.308 0.308 46.2%

1998 2.715 2.5 0.653 0.075 1.092 1.045 1.232 0.0% 0.308 0.308 0.308 0.308 34.2%

1999 2.435 -10.3 .532 0.686 0.714 0.504 1.232 0.0% 0.308 0.308 0.308 0.308 79.1%

2000 1.232 -49.4 0.686 0.686 0.518 -0.658 0.976 - 20.9% 0.308 0.308 0.308 0.052 69.7%

2001 -3.113 0.0 -0.350 -0.868 -1.189 -0.706 A0.244 -75.0% 0.052 0.052 0.070 0.070 7.9%

2002 -7.239 0.0 -0.056 -6224 0.100 -1.060 A0.397 62.3% 0.070 0.070 0.070 0.188 0.0%

2003 2.340 0.0 0.670 0.600 0.560 0.430 0.050 114.4% 0.100 0.100 0.237 0.237 33.7%

2004 -8.140 0.0 0.380 0.140 -8.950 0.330 0.950 11.8% 0.237 0.237 0.237 0.237 0.0%

2005 0.0 0.0 0.660 r/a r/a r/a r/a -100.0% 0.237 r/a r/a r/a 0.0%

EARNING & DIVIDEND ANALYSIS

This detailed Report provides an Earnings and Dividends history for Bank of Baroda. Tabular results include
up to a ten-year history of "as reported" Earnings per Share and Dividends per Share plus a calculation of the
amount of earnings paid out over the year in dividends (i.e. Payout Ratio). Earnings and Dividends are presented
on both a Quarterly and Annual basis. An annual Percent Change factor is calculated for both Earnings and
Dividends. Bank of Baroda. The Group's principal activities are to provide banking and related services. The
Group's services include personal banking, which includes deposits, retail loans, credit cards, debit card, lockers
and other services; business banking, which includes deposits, loans and advances, services and lockers;
corporate banking, which includes wholesale banking, deposits, appraisals and merchant banking, and cash
management and remittances; international business, which includes non-resident Indian (NRI) services,
offshore banking, export finance, import finance, correspondent banking, trade finance and international
treasury; treasury banking, which includes domestic operations and forex operations, and rural banking, which
includes deposits, loans, priority sector advances, services and lockers. The Group's international operations
cover 25 countries through its 74 branches/offices.

Directors have proposed a higher dividend of 90.0% (Rs 9 per share) for the year ended March 31st, 2009. Total
outgo in the form of dividend, including taxes, will be Rs 383.56 crore.

Balance sheet

------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:
Total Share Capital 294.53 365.53 365.53 365.53 365.53
Equity Share Capital 294.53 365.53 365.53 365.53 365.53
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 5,333.23 7,478.91 8,284.41 10,678.40 12,470.01
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 5,627.76 7,844.44 8,649.94 11,043.93 12,835.54
81,333.4
Deposits 93,661.99 124,915.98 152,034.13 192,396.95
6
Borrowings 1,640.83 4,802.20 1,142.56 3,927.05 5,636.09
82,974.2
Total Debt 98,464.19 126,058.54 155,961.18 198,033.04
9
Other Liabilities & Provisions 6,062.19 7,083.90 8,437.70 12,594.41 16,538.15
94,664.2
Total Liabilities 113,392.53 143,146.18 179,599.52 227,406.73
4
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash & Balances with RBI 2,712.32 3,333.43 6,413.52 9,369.72 10,596.34
Balance with Banks, Money at Call 6,541.88 10,121.21 11,866.85 12,929.56 13,490.77
43,400.3
Advances 59,911.78 83,620.87 106,701.32 143,985.90
8
37,074.4
Investments 35,114.22 34,943.63 43,870.07 52,445.88
4
Gross Block 1,707.68 1,873.17 2,244.62 3,787.14 3,954.13
Accumulated Depreciation 846.88 952.44 1,155.81 1,360.14 1,644.41
Net Block 860.80 920.73 1,088.81 2,427.00 2,309.72
Capital Work In Progress 0.00 0.00 0.00 0.00 0.00
Other Assets 4,074.41 3,991.16 5,212.50 4,301.83 4,578.12
94,664.2
Total Assets 113,392.53 143,146.18 179,599.50 227,406.73
3

RATIO ANALYSIS
As on 31-Mar-09 31-Mar-08 31-Mar-07
Profitability
Interest Income/Total Income (%) 84.60 85.20 86.70
Non Interest Income/Total Income (%) 15.40 14.80 13.30
Reported Net Profit/Total Income (%) 12.50 10.40 9.90
Net Interest Income/Total Income (%) 28.70 28.20 34.40
Net Interest Margin (%) 3.60 3.70 4.30
Return Related
ROE (%) 17.40 13.00 11.90
ROA (%) 1.00 0.80 0.70
Leverage & Capital Measures
Customer loans/deposits (%) 74.80 70.20 66.90
Investments/Deposits (%) 27.30 28.90 28.00
Total Liabilities/Net worth 17.70 16.30 16.50
Growth (%)
Growth in Interest Income 27.75 31.20 27.72
Growth in Interest Expenses 26.15 45.61 40.04
Growth in Employee cost 23.34 9.71 7.89
Growth in PAT 55.15 39.85 24.13
Growth in Deposits 26.55 21.71 33.37
43.52 243.71 --
Growth in Borrowings

Per Share
Book Value Per Share (Rs) 351.10 302.10 236.60
Earnings Per Share (Rs) 60.90 39.30 28.10
Dividend Per Share (Rs) 10.50 9.30 6.90
PROFIT/LOSS A/C

31-Mar-09(12) 31-Mar-08(12) 31-Mar-07(12)

Profit/Loss A/C Rs. mn %OI Rs. Mn %OI Rs. mn %OI
  Interest Income Earned 150915.77 84.55 118134.77 85.21 92126.37 88.70
    Commission, Exchange and Brokerage Income 7455.04 4.18 5401.68 3.90 4728.50 4.55
    Lease Income 0.00 0.00 0.00 0.00 0.00 0.00
    Dividend Income 322.24 0.18 109.38 0.08 318.72 0.31
    Miscellaneous Income 19799.30 11.09 14999.30 10.82 6685.19 6.44
  Other Income 27576.58 15.45 20510.36 14.79 11732.41 11.30
Total Income (OI) 178492.35 100.00 138645.13 100.00 103858.78 100.00
  Interest Expenditure 99681.68 55.85 79016.71 56.99 54265.57 52.25
  Employee Expenditure 23481.33 13.16 18037.64 13.01 16440.63 15.83
  Depreciation 2305.03 1.29 2319.96 1.67 1942.85 1.87
  Other Operating Expenditure 9974.26 5.59 8985.32 6.48 7059.65 6.80
  Provision and Contingencies 20778.04 11.64 8213.99 5.92 7607.43 7.32
Total Expenditure 156220.34 87.52 116573.61 84.08 87316.14 84.07
Pretax Income 22272.01 12.48 22071.52 15.92 16542.64 15.93
  Tax 0.00 0.00 7716.30 5.57 6278.00 6.04
  Extra Ordinary and Prior Period Items Net 0 0.00 0 0.00 0 0.00
Net Profit 22272.02 12.48 14355.22 10.35 10264.65 9.88
Adjusted Net Profit 22272.02 12.48 14355.22 10.35 10264.65 9.88
Dividend – Preference 0.00 0.00 0.00 0.00 0.00 0.00
Dividend - Equity 3835.56 2.15 3409.39 2.46 2524.58 2.43

%change05- %chnage06- %change07-

diff.2005-06 diff.06-07 diff.07-08 diff.08-09 06 07 08 %chnage08-09

71 0 0 0 24.1062031 0 0 0

71 0 0 0 24.1062031 0 0 0

0 0 0 0
0 0 0 0

2,145.68 805.5 2393.99 1791.61 40.2322795 10.77028604 28.89753163 16.77788807

0 0 0 0
2,216.68 805.5 2393.99 1791.61 39.38831791 10.26841942 27.67637695 16.22257656

12,328.53 31253.99 27118.15 40362.82 15.15800508 33.36891518 21.709112 26.54852565

3,161.37 -3659.64 2784.49 1709.04 192.6689541 -76.20757153 243.7062386 43.51969035

15,489.90 27594.35 29902.64 42071.86 18.6683128 28.02475702 23.72123301 26.97585386

1,021.71 1353.8 4156.71 3943.74 16.85381026 19.11094171 49.26354338 31.31341603

-18,728.29 29753.65 36453.34 47807.21 -19.78391207 26.23951507 25.46581404 26.61878495

0.00 0 0 0

0.00 0 0 0

0.00 0 0 0

-621.11 3080.09 2956.2 1226.62 -22.89958412 92.4000204 46.093253 13.0913197

-3,579.33 1745.64 1062.71 561.21 -54.7140883 17.24734493 8.955282994 4.340518935

-16,511.40 23709.09 23080.15 37284.88 -38.04436735 39.573336 27.6009446 34.94332107

1,960.22 -170.59 8926.44 8575.81 5.287254507 -0.485814579 25.54525675 19.54820223

 -165.49 371.45 1542.52 166.99 -9.6909257 19.83002077 68.72076343 4.409396009
-105.56 203.37 204.33 284.27 -12.46457585 21.35252614 17.67851117 20.90005441

-59.93 168.08 1338.19 -117.28 -6.962128253 18.25508021 122.9039043 -4.832303255

0.00 0 0 0

83.25 1221.34 -910.67 276.29 2.043240616 30.60112849 -17.47088729 6.422615492

-18,728.30 29753.65 36453.32 47807.23 -19.78392472 26.23951507 25.46580007 26.61879905
0.00 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
BUSINESS PERFORMANCE ACCORDING TO BALANCE SHEET:

The Bank continued its journey of making sustained growth by setting new milestone of business size recording
global business growth of 30% during 2008-09. The domestic deposits of the Bank increased by 23.6% and
domestic advances rose by 29.3% - way ahead of the Indian banking industry’s average growth. The priority
sector credit surpassed the mandatory requirement and registered a growth rate of 23.9% during the year 2008-
09. The Bank recorded a growth of 24.2% in SME credit, 27.9% in farm credit and 16.3% in retail credit
reflecting a balanced growth of its loan book.

The level of Bank’s Net Profit at Rs 2,227.20 crore for the year 2008-09 reflected a robust year-on-year growth
of 55.2%. During 2008-09, the Bank’s overseas business grew by 46.3% partly reflecting an impact of 25.0%
depreciation of rupee against the US dollar on rupee balance sheet. The overseas business contributed 22.5% to
the Bank’s Global Business and 21.2% to the Bank’s Gross Profit during 2008-09.

As the Bank’s primary objective is to grow with quality, the Bank focused on containing the impaired assets to
the minimum possible level. While the Gross NPA in domestic operations stood at 1.51% at end-March 2009,
the same for Overseas Operations was just 0.51%. The global Net NPA too was pegged at 0.31% by the year-
end 2008-09 in line with the promise given by the Bank to its stakeholders.

SEGMENT-WISE PERFORMANCE

The Segment Results for the year 2008-09 of Rs 3,342.95 crore have been contributed by the Treasury
Operations to the extent of Rs 1,019.57 crore, Rs 845.22 crore by Corporate/ Wholesale banking, Rs 1,406.50
crore by Retail Banking and Rs 1,769.39 crore by Other Banking Operations. The Bank earned the Profit after
Tax of Rs 2,227.20 crore after deducting Rs 1,697.74 crore of unallocated expenditure and Rs 1,115.75 crore as
provision for tax.
Resource Mobilisation & Asset Expansion

The share of Bank’s deposits in total resources stood at 84.60% as of 31st March 2009. The total deposits grew
from Rs 1,52,034.13 crore to Rs 1,92,396.95 crore, reflecting a growth of 26.55% over the previous year. Of
this, Savings Bank Deposits – an important constituent of low cost deposits grew by 18.76% - from Rs
35,776.38 crore to Rs 42,487.28 crore. The share of low cost deposits (Current & Savings) in Total Global
Deposits was at 29.59% and in Domestic Deposits at 34.87%. The banking industry as a whole witnessed a
movement from low cost deposits to term deposits during the year, in view of sharp increase in the interest
rates offered on term deposits during 2008-09.

The Bank’s Global Advances expanded by 34.94% during 2008-09 led by 29.32% expansion in domestic
advances and 56.3% expansion in overseas advances. It may be noted that expansion in overseas advances also
factors in the impact of currency depreciation (of the order of 26.9% against the US dollar) during 2008-09.

IPO ISSUES OF BANK OF BARODA

Bank of Baroda
- 

Issue details
Bid/Issue opens on  : January 16, 2006
Bid/Issue closes on : January 20, 2006
Price Band : Rs 210 to Rs 230.
Minimum application : 30 equity shares and in multiples of 30 equity shares thereafter.
Maximum Retail Bid Amount : Rs. 1,00,000.

Present Equity Capital comprises 1500,000,000 Equity shares of Rs.10/- each fully paid up

Issue size of 71,000,000 Equity Shares at a face value of Rs 10 each through the 100 per cent book-building
route
BACKGROUND

Bank of Baroda is among the top five PSU banks in the country with considerable presence outside India and
services over 25 million customers across India. The bank has a network of 2694 branches in India spread over
27 states and 5 union territories. In has an international presence in 19 countries and government of India
presently holds 66.8 per cent stake in it. BOB derives 85% of its revenues from domestic operation while the
balance rest is contributed by international operations.

OBJECTS OF THE ISSUE

The objects of the issue are to augment its capital base to meet the future capital requirements arising out of
the implementation of the Basel II standards and the growth in assets, primarily loan and investment portfolio
due to the growth of the Indian economy and for other general corporate purposes including meeting the
expenses of the Issue.  

KEY INVESTMENT RATIONALE

Indian economy has grown at a sustained pace over the last few years with GDP growing at 6.9% in financial
year 2005 and 8.5% in financial year 2004. A key beneficiary of this economic boom was the banking sector,
which posted credit growth of more than 30%. The banks have been able to post higher jump in profitability
due to sustained credit growth, which continues to be fuelled by retail and SME (Small & Medium Enterprise)
financing. The incremental credit deposit ratio has climbed above 80% along with jump in deposit
mobilization. This credit boom also aided the banks to improve their asset quality and reduced their
dependence on treasury incomes. We expect the current growth momentum to continue with banks likely to
further grow in size & profitability in years to come.  

NEW INITIATIVES TO DRIVE GROWTH

The bank has envisaged growth through remoulding itself from a traditional bank into a bank with an
aggressive retail push, renewed credit thrust and strong branding, which is evident from its new logo of the
“Rising Sun”. The recent change in top management has brought forth an aggressive ideology, which believes
in taking the bank to the next level. The current management has adopted implementation of core banking
solution (CBS) & result-oriented, performance-driven work culture. The bank has adopted initiative steps by
introduction of 12-and 24-hour branch banking in some branches and expanding its ATM base.

RETAIL THRUST

The bank is targeting 20% savings growth, 40% growth in retail lending around 25% growth in agriculture and
30% growth in SME credit. It has tied up with SIDBI to increase its thrust towards SME’s and is also coming
out with new products like Multi-City Cheque Facility for its current account customers. It is likely to open
100 money plexus across the country in the current fiscal to provide the entire range of its retail products under
one roof. Money plexus will be a branch within a branch with a distinct and uniform ambience, and keeping
customer convenience as its prime focus. These factors will drive retail growth and act as a major factor for
driving future earnings growth. 
TECHNOLOGY – GROWTH ENABLER

The technology will be another major tool in driving its growth plan. The bank expects to implement CBS in
1,979 branches by FY2009. BOB expects to have around 125 branches under CBS by FY2006 and total of 600
branches with CBS by FY2007.This will result in its customers experiencing a centralized real-time 24x7
banking system and would result in sound customer base. The bank is a PSU, which in itself provides an
element of safety in minds of people when coupled with technology driven business will lead to phenomenal
growth opportunity in the long run.

DE-RISKING OF INVESTMENT PORTFOLIO

BOB transferred securities worth Rs.6617 crore from Available-for-sale (AFS) to the Held-to- Maturity
(HTM) category in Q1 FY06. BOB has ensured that its portfolio is considerably de-risked by transferring these
securities and it need not make significant provision in the current financial year. However, other income will
decrease as BOB had large amount of trading income in earlier years. This will, however, will be offset by
higher core income growth and improved asset quality.  

IMPROVING ASSET QUALITY

The bank has reduced its gross NPA from 10.41% to 7.21% for Q1 FY06 and net NPA for Q1FY 06 have
come down from 2.9 % to 1.41%. The reduced NPA levels would lead increased profitability for BOB.  

KEY INVESTMENT CONCERNS

HIGH OTHER INCOME: The bank continues to derive a large part of its income from treasury operations
which contributed 54.54% & 52.81% to its total income in fiscal 2004 and fiscal 2005 respectively. The bank
faces risk of decline in treasury income in the event of firming up of interest rates and would face problems in
replicating the bond gains going forward.  

FINANCIALS

During the first half of current fiscal, the bank reported a modest increase in net interest income (NII) by 12%
to Rs 1540cr (Rs 1,371cr) on the back jump in Advances. The non-Interest Income fell sharply by 31% to Rs
518 crore due to lower treasury gains. Operating expenses flared up by 13% to Rs 1108 crore due to increase
in staff cost, technology and brand building exercise undertaken by the bank. Jump in operating expenses &
lower treasury gains lead to a decline of 18 per cent in net profits to Rs 416 crore from Rs 506.3 crore earlier.  

VALUATIONS

BOB’s core income growth, increased retail penetration & improved asset quality driven by sound technology
base would catapult BOB into the big league. We expect BOB to register a y-o-y growth of 26% in its PAT for
FY 2006. The increased asset quality and retail thrust makes the current valuations of 1.35 x FY06E Book
Value & 1.55 xFY06E Adjusted Book Value relatively attractive. The issue is priced attractively as it
discounts its FY06E Book Value 1.14x at the lower price brand of Rs 210 and 1.25x at the upper price band of
Rs 230. The investors may subscribe from a long-term investment perspective as well as deriving benefits of
 listing gains.  

INTERPRETATION

After witnessing a robust average growth of around 8.9% during 2003-04 through 2007-08, the Indian economy
experienced a growth deceleration in 2008-09 primarily on account of a synchronized global slowdown.
Emerging market economies including India suffered primarily due to diminishing export demand and
constrained external financing conditions. For India, the growth slowdown was more pronounced in the second
half of 2008-09 triggered by a broad-based industrial slowdown and a contraction in exports for five
consecutive months beginning October 2008. The Reserve Bank of India (RBI) in its Annual Monetary Policy
for 2009-10 has projected India’s GDP growth for 2008-09 in the range of 6.5% to 6.7%.

At the sectoral level, the performance of agriculture sector during 2008-09 was satisfactory. The Central
Statistical Organisation (CSO) has projected agriculture and allied activities to grow by 2.6% in 2008-09.
According to the Second Advance Estimates of GDP, the total foodgrains production during 2008-09 would be
around 227.9 million tonnes as against 230.8 million tonnes in 2007-08.

Industrial sector, however, experienced a loss of growth momentum during 2008-09 with the year-on-year
expansion being 2.4% as against 8.5% in 2007-08. Similarly the core or infrastructure industries recorded a
lower growth of 2.7% in their production during 2008-09 as compared to 5.9% during 2007-08. Within the core
sector, slowdown was more pronounced for steel and crude oil segments. The primary contributor to industrial
slowdown was a slowdown in investment and private consumption demand. The government consumption
expenditure, however, remained buoyant on account of fiscal stimulus measures and committed expenditure.

Corporate performance too remained subdued throughout the year, though the third quarter of 2008-09 was the
worst in terms of both the sales turnover and profitability.

After rising to nearly 13.0% (y-o-y) in August 2008, headline inflation (Wholesale Price Index) dropped to
0.26% as on March 28, 2009. With decreasing commodity prices and weaker domestic demand, inflationary
environment is weaker domestic demand, inflationary environment is expected to remain benign in the coming
six months.

Hit by the slump in global demand, India’s merchandise exports ended the year 2008-09 at U.S. $168.7 billion,
up a modest 3.4% from U.S. $163 billion a year ago. The imports too registered a limited growth of 14.3% (y-o-
y). India’s trade deficit for 2008-09 widened to U.S. $119.05 billion from U.S. $88.52 billion a year ago. The
current account deficit is projected at about 3.0% of GDP in 2008-09 primarily due to a markedly higher oil
import bill (especially in the first six months of 2008-09).

Indian economy also suffered on account of the reduced inflow of the long and short-term debt and reversal of
portfolio inflows during 2008-09. A positive development was, however, relative resilience of FDI inflows (US
$27.38 billion in 2008-09) in the face of reversal of capital flows, reflecting the attractiveness of India as a long-
term investment destination.
While India’s foreign exchange reserves declined from a peak f $315 billion in May 2008 to $252.33 billion at
end-March, 2009 they remain adequate compared to the country’s gross financing requirement and imports.
Moreover, India’s external debt and debt sustainability indicators continue to remain at comfortable levels and
ensure external stability.

As a result of the global crisis, the benchmark stock market index declined by over 38.0% in 2008-09 and the
rupee depreciated 26.4% against the U.S. dollar. In early 2009-10,however, the rupee and the stock markets
have stabilized to a great extent.

During the year 2008-09, the monetary policy stance of RBI (Reserve Bank of India) shifted from concerns
related to inflation in the first half of 2008-09 to maintaining financial stability and arresting the growth
moderation in the second half. The RBI’s measures – including cutting policy rates, lowering the cash reserve
ratio and statutory liquidity ratio and easing controls on capital inflows – eased the domestic liquidity pressures
that appeared in September and October and brought down inter-bank rates. Through the RBI’s policy actions,
the cumulative primary liquidity potentially available to the financial system is almost 7.0% of GDP.

In response to the global crisis, the Government too launched three fiscal stimulus, which came on top of an
already announced expanded safety-net programme for the rural poor, the farm loan waiver package and payout
following the Sixth Pay Commission Report. The combined impact of these fiscal measures is around 3.0% of
GDP.

Indian economy has to face several challenges, going forward, in the context of the ongoing global financial
crisis such as stepping up public and private investment demand, maintaining adequate liquidity in the system in
view of higher government spending, preserving financial stability and benign interest rate environment, etc.

Going forward, the fiscal and monetary stimulus initiated during 2008-09 combined with lower commodity
prices would cushion the economic downturn by stabilizing domestic economic activity. Accordingly, with the
assumption of normal monsoon, the RBI has placed real GDP growth at 6.0% for 2009-10 and inflation (WPI)
at 4.0% by end of fiscal 2010.

NET PROFIT

The Net Profit of International Operations during the year increased by 23.17% (y-o-y). This is in spite of the
huge requirement of provisioning due to ‘Mark to Market’ of Investments. The Bank does not have exposure to
subprime assets. Also, its exposure to Derivatives is only by way of investments in ‘Credit Linked Notes’
(CLNs) of Indian Corporate of repute and where it is confident of the underlying credit quality. The investments
have been ‘Marked to Market’ based on Issuers/Traders Quotes, as impact was felt on valuation as markets
were quoting two way quotes at wide variance. The provisioning made by the Bank in the current year is on
account of a decline in present value and is likely to get reversed on maturity of the investments. The
contribution of international operations to the Bank’s global Net Profit moderated to 18.86% in 2008-09.

PERFORMANCE OF INDIAN BANKING SECTOR IN 2008-09

Indian banking industry faced many uncertainties during 2008-09 in the face of tight market liquidity in the
global financial markets. The RBI’s prompt and relevant measures ensured adequate domestic and foreign
liquidity to Indian banking industry so that the flow of credit to productive sectors would not suffer much. Yet,
on account of the severe global economic slowdown and its spillover effects on India, growth of bank credit to
commercial sector decelerated in 2008-09.Moreover, expansion in net foreign exchange assets of the Indian
banking industry moderated to a large extent.

Bank credit to the commercial sector increased by 16.9% (y-o-y) in 2008-09 as against 21.0% a year ago. Non-
food credit growth of commercial banks picked up in the first two quarters of 2008-09 on account of a sizeable
increase in credit to petroleum sector and also as a substitution for funds raised by the corporate from non-
banking and external sources. However, non-food credit growth for the year as a whole was 17.5% at end-
March, 2009 as against 23.0% a year ago. The lower expansion of credit compared to deposit mobilization at
19.8% (y-o-y) resulted in a decline in incremental credit-deposit ratio (y-o-y) of scheduled commercial banks
(SCBs to 64.4% at end-March 2009 as against 73.6% at end-March 2008.

The RBI data shows that while the deceleration in bank credit was observed across the banking system, it was
shaper for the private and foreign banks.

The SCBs’ investment in SLR securities as a per cent of their net demand and time liabilities increased to
28.1% at end-March 2009 from 27.8% a year ago due to lower credit expansion in 2008-09.

Data on sect oral deployment of credit of SCBs shows that during 2008-09, the incremental credit expansion
was primarily led by infrastructure, petroleum, coal products & nuclear fuels, iron & steel, engineering,
construction and chemical & chemical products industries. While the credit flows to small industries and
personal borrowers moderated, those to agriculture sector posted an increase.

The Indian banks, in general, posted healthy financial results during 2008-09 compared to their global peers
despite challenging economic conditions. The outlook for Indian banking industry remains positive in 2009-10
on the backdrop of its stricter prudential regulation by the RBI, sound financial indicators and stable political
regime.

Business and Financial Metrics

Metric (in Billions INR) 2005 2006 2007 2008 2009

Total Interest Income 64.31 71.00 92.13 118.13 150.92

Non - Interest Income 13.05 11.92 13.82 20.51 27.58

Total Revenue 77.36 82.92 105.94 138.65 178.49

Cost Income ratio 46.24% 55.43% 51.30% 50.89% 45.38%

Net Profit 6.768 10.50 10.26 14.36 22.27

Credit - Deposit Ratio 55.82% 67.15% 74.35% 77.32% 82.36%

Net NPA's(%) 1.45% 0.87% 0.60% 0.47% 0.31%

Return on Average Assets (%) 0.71% 0.73% 0.72% 0.80% 0.98%

Total Assets 946.64 1,133.93 1,431.46 1,796.00 2,274.07

In FY2009, Total revenue grew by 28.7% to Rs.178.55 billion from Rs. 138.64 billion in FY2008, led by
33.10% and 34.50% growth in its total interest and Non-Interest Income respectively. In the period from 2005-
09, the bank grew by 28% every year, and interest income growth outpaced the non interest income growth.
During 2008-09, Non-Interest income growth was largely driven by strong growth of 39.50% in fees income.
Despite the healthy growth in advances, the bank was able to maintain current account and savings account
(CASA) at 34.90% reduced marginally from 35.80% in FY2008, which is still the smallest fall compared to its
peers. The highest low-cost deposit among public sector banks helped the Bank achieve a net interest margin of
2.91% compared to 2.90% in FY2008.
Total Revenue and total Operating Profit of Indian bank Breakdown by Segment during the year 2008-2009.
Where other large banks achieved less than 30% growth in advances, Bank of Baroda’s advances portfolio grew
34.90% to Rs.1439.86 billion, which was the highest growth recorded in FY2009. Overseas loan book have
grown by 56% largely due to rupee depreciation during the year. Even in the financial crisis, the bank was able
to increase its return on assets to 1.09%, from 0.89% propelled by 34.90% increase in total advances. Due to its
diversified loans portfolio and better asset management skills, the Bank reduced its Non-Performing Assets
(NPAs) to 0.44% from 0.59%, which was lowest among its peers like State Bank of India and Punjab National
Bank.

In FY09, the Bank reported a net profit of Rs 22.75 billion driven by strong growth in advances, higher
treasury, and loan provisioning. The expenses on salaries and other operating heads grew by 21.8% and 10.9%
respectively in the fourth quarter of 2009. The Bank managed expenses growth at lesser rates than growth in
interest and other incomes which is one of the most important reasons behind its high profit growth.

NEWS OF BANK OF BARODA

Bank of Baroda Sees Net Interest Margin at 3.45-3.5%

State-run Bank of Baroda expects net interest margin in FY11 to be at 3.45% - 3.5%, Chairman and Managing
Director MD Mallya said on Wednesday.

The bank is planning to add 400 new branches in the current year, he told reporters.

Analysis
The bank baroda expects net interest margin in FY11 to be at 3.45% - 3.5% by this the share price of bank of
baroda. The bank can also open new policy because by this the image of bank will be increase.

Bobibanking- Bank of Baroda Internet Banking

Bobibanking means Bank of Baroda Internet banking. Customer of this bank will now be able to access their
bank accounts and make any bank transactions 24/7 online

Customers can login to the official website https://www.bobibanking.com/ for online banking. Customers just
need to enter their usernames and passwords and then start availing the banking facility.
 
Other facilities which are available in the website are that customers can also book railway tickets through this
website and customers will also be able to pay their commercial taxes through this portal.
It also has different facilities like Baroda easy pay, Baroda eshoppe and temple donation. Customers can even
make temple donations through this website. Customers will also be able to download various registration forms
here.

ANALYSIS

Bank of baroda is entering in net banking by this the many customer will use this service and many customer
will open the account in baroda and baroda will increase the business world wide.

Bank of Baroda Exposure to Dubai World at $200 Mln - India Minister

Friday, Apr 23, 2010

NEW DELHI (Dow Jones)--State-run Bank of Baroda (532134.BY) has a $200 million exposure as of Nov. 30,

2009 to Dubai World , Nakheel

and its group companies, Junior Finance Minister Namo Narain

Meena said Friday.
The State Bank of India (500112.BY) has an exposure of $50 million to Dubai World

and the associate companies, while ICICI Bank Ltd. (532174.BY)

has an exposure of $28.5 million, he told lawmakers in the lower house of parliament.

Meena said HDFC Bank Ltd. (500180.BY) has an exposure of $4.23 million to Dubai World

and its associates.

Investor confidence worldwide was shaken in November after Dubai announced that it was seeking a six-month

standstill on the debt of Dubai World , its flagship conglomerate.

Bank of Baroda cancels plan to sell bonds

Hong Kong/Singapore: Bank of Baroda has cancelled its planned benchmark sale of bonds denominated in
dollars, according to three people familiar with the matter.
The people didn’t say whether the sale will be rescheduled, nor did they provide further details.
The bank had planned to sell five-year notes priced to yield about 250 basis points over the benchmark mid-
swap rate, people familiar with the deal said, declining to be identified before a public announcement.
A benchmark sale is typically $500 million (Rs2,330 crore) in size.

India US Banking finance

HOUSTON: Bank of Baroda plans to open a branch here to serve the growing number of Indian origin
customers and expand its services in the US.
Bank of Baroda, which dubs itself as "India's international bank," has a history of providing financial services
for Indian expatriates.

It has now approached the Texas Department of Banking to provide small business services targeting the Indian
American community here. "The Houston branch will enable Bank of Baroda to better serve the needs of the
large and growing number of persons of Indian origin," a bank document said.

"The branch proposes to reach out to small businesses in the local area to provide timely and adequate
assistance with starting their business by utilising the small business administration (SBA) facility," according
to the filing before the Texas Department of Banking.

Indian Americans feel that the opening of the branch could usher in a positive tone and lead various other
financial institutions to establish their presence in Houston.

The state's regulatory body still has to process the application, which can take weeks or even months. The bank
has also filed an application with the Board of Governors of the Federal Reserve System.

The bank has 42 overseas branches and operates 17 retail banking subsidiaries, located primarily in Africa.

K D Lamba, chief executive officer and general manager of the bank's New York-based US operations, will
head a four-person staff in Houston until a formal branch manager is appointed, the application stated.

However, this filing isn't the first time the bank's US wing has submitted an application to move into the
Houston market. The institution filed and then withdrew an application to set up a local branch in 2009.

Bank of Baroda opens two branches in Trinidad in a day

Bank of Baroda has created history by opening two branches in one country in a day, according to M.D. Mallya,
global chairman and managing director.

Mallya underscored this point in an address at the opening of the Bank of Baroda’s second branch in
Chaguanas, Central Trinidad, Friday. The other one was opened in San Fernando.

Mallya praised the government of Trinidad and Tobago and the central bank for their cooperation in bringing
this project to its conclusion.

“We have been able to assess and analyse the social ethos of the people of Chaguanas. We will continue in the
same trend that we started when we opened our first branch in Port-of-Spain in October 2007,” he said.

Bank of Baroda has over 36 million customers in over 25 countries across the globe. “We have survived two
world wars and the great depression among other serious economic issues. We will continue to serve the people
as we have done so far,” Mallya said.

Trinidad and Tobago’s Minister of Trade and Industry and Minister in the Ministry of Finance Senator Mariano
Browne praised the initiatives of the Bank of Baroda for its insight in investing in Trinidad and Tobago.

He hailed the recent India Trade Mission to Trinidad and Tobago as a success.
Browne said that India was the fourth largest trading country in the world, and he hoped Trinidad and Tobago
will continue to meet Indian businessmen on a regular basis.

He said that at the forthcoming Commonwealth Heads of Government Conference in this country Nov 26-29,
more than 1,000 businessmen are expected to discuss multilateral trading agreements, of which Indian
businessmen would be a part.

“We will continue to work with the Bank of Baroda. We will give it our support as it has demonstrated a spirit
of innovation.”

Indian High Commissioner Malay Mishra said that Bank of Baroda had created history by opening two
branches in one country in the same day. He urged the bank to extend its operations to other sectors of the
economy.

Mishra said that Bank of Baroda continued to show its marketing skills to the people of Trinidad and Tobago,
adding that less than two years after opening its first branch in Port-of-Spain, it has demonstrated “confidence in
the local economy” by opening two more.

MP for Chaguanas West Jack Warner saw great opportunities for the branch in the area, which had a primarily
agriculture-based economy. Warner said the bank’s marketing initiatives must focus on the farmers and the
small businessmen, giving them priority loans at affordable rates.

This country’s Indian Diaspora came from Uttar Pradesh and Bihar between 1845 and 1917 to work on the
sugar plantations and to boost agriculture. Around 44 percent of the 1.3 million people in Trinidad and Tobago
are of Indian descent.

Fire in Bank of Baroda's Bhubaneswar Branch

Report by Dipti Ranjan Kanungo, Bhubaneswar: In Wednesday morning the Bank of Baroda, Bapujeenagar
Branch, Bhubaneswar set fired due to short circuit of Electric wires. Local peoples informed the Fire station.
After receiving the information, the firemen immediately rushed to the spot. They controlled the fire  but the
furniture, fixtures, and computers of lakhs  of Rupees has been damaged.

Bank Saw A Net Profit Growth Of 37.32% In 2009-10

Mumbai: Bank of Baroda (BoB) posted a better-than-expected net profit of Rs 906 crore in January-March, up
20.41% on year helped by growth in net interest income. Net interest income grew 18.6% in January-March to
Rs 1,745 crore from Rs 1,471 crore last year. The bank saw a net profit growth of 37.32% in 2009-10 at Rs
3,058.33 crore as against Rs 2,227.20 crore in FY09.

“The bank’s initiatives in terms of shedding bulk business and focusing on current account and savings account
(CASA) growth have started to pay off,” said chairman and managing director M D Mallya. Going ahead, the
bank hopes to continue lowering fund costs by cutting back further on bulk deposits, he said.

Net interest margin (NIM) grew 10 basis points to 3.50% in the quarter ended March. The bank is looking at
maintaining its NIM at 3.45-3.5%. In 2009-10, NIM was 3.12%.
The lender’s loan book grew 22.2% on year to Rs 1.75 lakh crore, while deposit base expanded 25.2% to Rs
2.41 lakh crore. Inthe March quarter, treasury gains jumped 82% on year to Rs 62 crore. Mallya said the bank
had made provisions against mark-to-market losses and would remain insulated even if yields touched 8.5%.
Net non-performing assets as on March-end stood at 0.34%, versus 0.31% last year. Gross NPAs rose to 1.36%
in January-March, from 1.27% a year ago. The bank also declared a Rs 15 per share dividend for 2009-10.
NW18

The Bank Is a Member of Financial Services Compensation Scheme

We are covered by the Financial Services Compensation Scheme (FSCS).The FSCS can pay compensation to
depositors if a bank is unable to meet its financial obligations. Most depositors – including most individuals and
small businesses – are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £ 50,000. For joint accounts each account
holder is treated as having a claim in respect of their share so, for a joint account held by two eligible
depositors, the maximum amount that could be claimed would be £ 50,000 each making a total of £ 100,000.
The £ 50,000 limit relates to the combined amount in all the eligible depositor’s accounts with the bank
including their share of any joint account, and not to each separate account.
For further information about the scheme (including the amounts covered and eligibility to claim) refer to the
FSCS website www.FSCS.org.uk or call 020 7892 7300 or 0800 678 1100.

Bank of Baroda Builds On Good Q1

Bank of Baroda surged 5.12% to Rs 226.05 on Friday after the company posted good Q1 June 2006 results.

As many as 7.10 lakh shares were traded on the BSE

The stock has been on recovery path after hitting the low of Rs 176.85 on 19 July due to overall weakness in the
market. Here, the stock found support and rose to higher ground to settle at Rs 226.05 on 28 July 2006 on
expectation of good Q1 results.

Bank of Baroda (BoB) has posted a net profit growth of 4% to Rs 163.32 crore for Q1 June 2006 compared to
Rs 156.94 crore for Q1 June 2005. Total income during the period has increased from Rs 1882.01 crore to Rs
2297.62 crore.

BoB had formally signed Life Insurance Company

As per reports, in June, BoB had formally signed a pact with HDFC Standard Life to market the private life
insurance company's banc assurance products through its network of 2,700 branches. However, the bank has
already sold 1,200 policies (of the private insurer) with sum assured of Rs 112 crore in the last 21 days. BoB
also said its plans to set up a life insurance company through a joint venture remain intact.

On 4 April, BoB had acquired 49,34,200 shares of BoB Housing Finance (BoBHFL), making it a 100%
subsidiary of itself. The company has further informed that they will initiate further steps for merging BOBHFL
with the bank.
In March, the company had raised FCNR(B) rates with effect from 1 April. BoB has hiked rates on dollar
deposits for one year to less than two year to 5.15% from 4.90%, for two years to less than three years to 5.13
from 4.88% and, for three years to five years - 5.11% from 4.86%.

Earlier this year, Bank of Baroda (BoB) had come out with a follow-on issue of 7.1 crore equity shares of Rs 10
each on 16 January. The proceeds would be used to help public sector bank augment its capital to meet the
Basel-II norms and grow its assets and investment