Presentation to Media Performance Highlights ( Q3 & Apr-Dec, 2008-09) by Dr Rupa Rege Nitsure

1. Presentation to Media Performance Highlights ( Q3 & Apr-Dec, 2008-09) by Dr Rupa Rege Nitsure Chief Economist January 29, 2009

2. Bank of Baroda: Key Strengths • BoB is a leading 100 years old PSB in India with modern and contemporary personality, offering banking products and services to industrial and commercial, retail and agricultural customers across the country. Overseas Business Operations extend across 25 countries through 74 branches/ Offices Modern & Contemporary Personality Uninterrupted Record in Profit-making and Dividend Payment Strong Domestic Presence through 2,899 branches Pioneer in many Customer-Centric Initiatives Provides Financial Services to around 36.3 million customers globally First PSB to receive Corporate Governance Rating (CAGR-2) Steady Movement towards International best practices – Preparing financials under US GAAP Rapid & Significant Technology Progression Since FY06 A well-accepted & recognised Brand in Indian banking industry

3. Domestic Branch Network at End-Dec, 2008 • The Bank has a network of 2,899 domestic branches & it merged seven branches in Apr-Dec, FY09. • About 60.0% of the domestic branches are in rural/semi-urban areas areas. • Of the total no of 2,899 branches, 350 are Agriculture Thrust branches. • Around 672 branches are located in minority concentrated districts. • There are 126 specialised branches (including 19 service branches) & five Gen-Next branches as on date.

4. Robust Technology Platform • By 31 Dec, 2008, the Bank has completed CBS Rollout in 1,923 domestic branches including 31 extension counters. • All CBS branches are enabled for inter bank remittances through RTGS and NEFT. • CBS has also been implemented in 66 overseas branches of Bank/its Subsidiaries. • The Bank’s ATM network has increased to 1,175 from a mere 170 in 2005. • The Bank has installed 48 ATMs at Railway Stations. • Many novel products like RapidFunds2India, Baroda Connect, Online Tax Payment Facility, Depository Facility, Baroda Easy Pay, Online Payment of Railway Ticket Booking, etc. have been developed by the Bank to enhance customer convenience.

5. Concentration (%): Domestic Branch Network

6. Pattern of Shareholding: 31st Dec, 2008 As on 31st Dec, 2008 • Share Capital Rs 365.53 crore • No. of Shares 364.27 million • Net worth Rs 11,011.17 crore • B. V. per share Rs 302.28 • Return on Equity (annualised): 17.85% • BOB is a Part of the following Indexes • BSE 100, BSE 200 and BSE 500 • Nifty Junior and Bankex. • BOB’s Share is listed on BSE and NSE in ‘Future and Options’ segment also.

7. Business Growth: Dec’04 to Dec’08

8. Profits: Apr-Dec’03 to Apr-Dec’08 Bet.’ Dec’05 & Dec’08, Bank’s Gross Profit has grown at the CAGR of 28.1%.

9. Asset Quality: Dec’03 to Dec’08 Gross NPAs (%) Net NPAs (%)

10. Performance Highlights • Bank’s Achievements against the Guidance for FY09 • (1) Business Growth with a Thrust on Asset Quality • Bank has expanded its loan-book at 33.2% (y-o-y) & yet managed to reduce its Gross NPA from Rs 2,040.30 crore at end-Dec’07 to Rs 1,981.38 crore at end-Mar’08 to Rs 1,921.42 crore at end-Dec’08 despite challenging economic conditions. • Bank has added 6.3 million new customers to its books in Apr-Dec, FY09. (2) Bank to exercise control over “Cost of Deposits” by focusing on CASA and by reducing dependence on Bulk Deposits • Bank’s Domestic CASA share sequentially improved from 35.85% at end-Sept’08 to 36.10% at end-Dec’08 despite higher interest rates on term deposits available in the system.

11. Performance Highlights • Bank’s Achievements against the Guidance for FY09 • Bank’s Core Deposits excluding Bulk Deposits increased at the pace of 17.9% in Apr-Dec, FY09 versus 12.3% in Apr-Dec, FY08. • (3) Focus on High-yielding Advances • While Avg Yield on Domestic Advances & Global Advances stood at 10.53% & 9.58% respectively in Q3, FY08, it improved to 11.25% & 9.91% respectively in Q3, FY09. • (4) Thrust on Improving the NIM • Bank’s Global NIM (% of interest-earning assets) improvedto3.30% & Domestic NIM to 3.61% in Q3, FY09 from 3.00% & 3.20% respectively in Q3, FY08. • (5) Special Emphasis on Fee-based Income • Bank’s Core Fee-Based Income expanded at the pace of 25.8% (y-o-y) in Q3, FY09 despite volatile financial markets.

12. Thrust on Averages Rather Than Terminal Nos. • Figures pertain to domestic business based on weekly averages.

13. Business Performance: Dec’07 to Dec’08 • Global Business up 27.3%(Y-o-Y) to Rs 2,95,815.20 crore at end-Dec, 2008 • Domestic Business up 25.5%(Y-o-Y) to Rs 2,34,579.17 crore • Overseas Business up 34.8%(Y-o-Y) to Rs 61,236.03 crore • Global Deposits up 23.2%(Y-o-Y) to Rs 1,68,616.06 crore • Domestic Deposits up 21.5%(Y-o-Y) to Rs 1,36,515.77 crore • Overseas Deposits up 30.8%(Y-o-Y) to Rs 32,100.29 crore • Domestic CASA share 36.10% at end-Dec’08 • Global Advances up 33.17% (Y-o-Y) to Rs 1,27,199.14 crore • Domestic Advances up 31.4% to Rs 98,063.40 crore • Overseas Advances up 39.4% to Rs 29,135.74 crore

14. Business Performance: Dec’07 to Dec’08 • Retail Credit up 22..1%(Y-o-Y) to Rs 18,804.62 crore at end-Dec 2008 • Retail Creditnow forms 19.03% of Gross Domestic Credit • Home Loan Bookup 18.3%(Y-o-Y) to Rs 7,937.02 crore • SME Credit up 27.8% (Y-o-Y) to Rs 13,710 crore • Farm Credit up 25.8% (Y-o-Y) to Rs 15,620.56 crore • Priority Sector Credit up 23.7%(Y-o-Y) to Rs 39,648.51 crore • Bank’s credit to weaker sections was up 42.1% (Y-o-Y) to Rs 7,354.96 crore. • Bank’s micro-credit to SHGs was up 45.0% (Y-o-Y) to Rs 549 crore.

15. Key Financial Ratios : Apr-Dec, 2008-09 • Return on Average Assets (ROAA) at 1.04% [0.89% at end-Mar, 2008] • Earning per Share (annualised) at Rs 53.97 [Rs 39.41 in FY08] • Book Value per Share at Rs 302.28 [Rs 261.54 in FY08] • Return on Equity (ROE) at 17.85% [15.07% in FY08] • Capital Adequacy Ratio( Basel II) at 13.20% • Cost-Income Ratio declined from 49.45% to 46.00%(Y-o-Y). • Gross NPA ratio declined to1.50% from 2.11% (Y-o-Y). • Net NPA ratio declined to0.37% from 0.54%(Y-o-Y). • NPA Coverage improved to75.40% on prudent provisioning

16. Operating Profits: Apr-Dec’08 & Q3, FY09 35.5% 51.7% • NII grew at 26.7% (Y-o-Y) in Apr-Dec, FY09& at 46.6% (Y-o-Y) in Q3, FY09.

17. Net Profits: Apr-Dec’08 & Q3, FY09 27.2% 41.4%

18. Other Highlights: Apr-Dec, FY09 • Net Interest Margin (as % of interest-bearing assets) in Global Operations stood at 2.94% in Apr-Dec, FY09and 3.30% in Q3, FY09. • Cost of Deposits in Global Operations increased from 5.60% to 5.73% • Cost of Deposits in Domestic Operations increased from 5.77% to 6.25% • Cost of Deposits in Overseas Operations decreased from 4.84% to 3.52% • Yield on Advances in Global Operations declined from 9.61% to 9.58% • Yield on Advances in Domestic Operations improved from 10.51% to 11.25% • Yield on Advances in Overseas Operations declined sharply from 6.31% to 5.58%. • Yield on Investments in Global Operations improved from 6.91% to 7.18%. • Yield on Investments in Domestic Operations improved from 6.95% to 7.30% & in Overseas Operations declined from 6.53% to 5.88%

19. Other Highlights: Apr-Dec, FY09 • Treasury Income (Profit on Sale of Investments) increased by 32.9% (Y-o-Y) toRs 599.29 crore. • Fee-based Income (Commission, Exchange, Brokerage & Incidental Charges) improved by a strong 34.5% (Y-o-Y) toRs 747.81 crore. • Cash Recovery (NPA & PWO) during Apr-Dec, FY09 stood at healthy Rs 633.21 crore despite visible signs of industrial slowdown. • Profit from Exchange Transactions grew by a robust 48.6% (Y-o-Y) to Rs 286.01 crore.

20. Overseas Business: Apr-Dec, FY09 • In Apr-Dec, FY09, the “Overseas Business” contributed 20.70% to Total Business and 16.92% to Net Profit. • In Apr-Dec, FY09, the “Overseas Business” contributed 34.79% to the Bank’s income from commission/exchange/brokerage. • While the Cost-Income Ratio for Domestic Operations stood at 50.42% in Apr-Dec, FY09, it was just 20.35% for Overseas Operations. • While the Gross NPA (%) in Domestic Operations stood at 1.78% at end-Dec 2008, that for Overseas Operations was just 0.55%. • Whereas the “Gross Profit to Avg. Working Funds” ratio for Overseas Operations was 2.22% in Apr-Dec, FY09, it was 2.08% for Domestic Operations.

21. Banking Scenario • Economic slowdown has deepened considerably with IIP growth slipping to 3.9% in Apr-Nov, 2008 from 9.20% in Apr-Nov, 2007 • The RBI has revised its GDP growth forecast downwards in Monetary Policy Review (Jan 27) to 7.0% (with a downward bias) from 7.5–8.0% • Inflation, however, has eased considerably & expected in the band of 2.5% to 3.0% by end of FY09. • Interest Rates have developed a south-ward bias, but adjustments of lending rates will be gradual as cost of funds still on the higher side and downside risks to growth remain significant • Banks’ credit growth estimated at 24% & deposit growth at 19.0% for FY09. • RBI’s steps since Oct, 2008 have released liquidity worth of Rs 3,66,000 crore so far in the banking system.

22. Bank’s Guidance for FY09 • To continue with our thrust on “Growth with Quality” by focusing onCASA, by further reducing the dependence on Bulk Business & by protecting the Asset Quality with a firm control on the process of Credit Origination • To achieve the Business Growth of 25.0% in FY09 and FY10. • To protect the ROAA above 1.0% and ROE above 17.0% (already achieved in Apr-Dec, FY09) for FY09 & later • To bring down the Cost-Income Ratio to 45.0% • To maintain the growth of at least 25.0%-plus in core Fee-BasedIncome in FY09 and improve it further for the coming years • To continue with our efforts to bring down Gross & Net NPA further despite challenging times ahead…

23. Thank you.