Bank of Baroda: Consistently Sound Performance Achieved through Best Practices of People, Processes & Technology Performance Analysis: Q2 & H1, (FY13) Dr Rupa Rege Nitsure Chief Economist October 22, 2012

Bank of Baroda: Key strengths Bank of Baroda: Key strengths Bank of Baroda is a 104 years old State-owned Bank with modern & contemporary personality, offering banking products and services to Large Industrial, SME, Retail & Agricultural customers across India and 24 other countries. Relatively Strong Presence in Progressive States like Gujarat & Maharashtra Uninterrupted Record in Profit-making and Dividend Payment Overseas Business Operations extend across 24 countries through 96 Offices First PSB to receive Corporate Governance Rating (CGR-2) Robust Technology Platform with 100% CBS in Indian Branches Pioneer in many Customer-Centric Initiatives Strong Domestic Presence through 4,021 Branches Modern & Contemporary Personality Provides Financial Services to over 47 mln Customers Globally A well-accepted & recognised Brand in Indian banking industry

Results at a glance Q2, FY13 H1, FY13 Net Profit up 11.6%(y-o-y) to Rs 1, crore Net Profit up 11.0%(y-o-y) to Rs 2, crore Operating Profit up 11.3% (y-o-y) to Rs 2, crore Operating Profit up 16.7% (y-o-y) to Rs 4, crore Net Interest Income up 11.5% (y-o-y) to Rs 2, crore Net Interest Income up 16.4% (y-o-y) to Rs 5, crore NIM at 2.71% in Global & at 3.23% in Domestic operations NIM at 2.73% in Global & at 3.22% in Domestic operations ROAA (annualized) at 1.12% ROAA (annualized) at 1.06% Total Business up 23.2% (y-o-y) to Rs 7,00,330 crore by end-Sept, 2012 Total Advances up 22.2% (y-o-y) to Rs 2,92,181 crore by end-Sept, 2012 Total Deposits up 24.0% (y-o-y) to Rs 4,08,150 crore by end-Sept, 2012 Net NPAs (%) at 0.82% as on 30 th Sept, 2012 Provision Coverage Ratio at the healthy level of 75.72% as on 30 th Sept, 2012 CRAR at 12.91% with Tier 1 at 9.57% as on 30 th Sept, 2012 Cost-Income ratio at 36.48% in H1, FY13.

Sustained sound performance from FY08 Sustained sound performance from FY (Annual) (Annual) (Annual) (Annual) (Annual) H1, (Half-Yearly) Assets (Rs crore) 1,83,4792,26,6722,78,3173,58,3974,47,3214,75,827 Net Profit (Rs crore) 1,4362,2273,0584,2425,0072, Tier 1 Capital (Rs crore) 8,49611,07014,35720,97427,49826,712 Return on Equity (%) 15.07%19.48%22.19%21.48%19.04%16.90% Cost-Income Ratio (%) 50.89%45.38%43.57%39.87%37.55%36.48% NPL (Net, %)0.47%0.31%0.34%0.35%0.54%0.82% In four & a half yrs, Bank’s assets have grown 2.6 times. Bank’s half-yearly net profit in H1, FY13 is bigger than its full year’s profit in FY09.

Impressive CAGR for key parameters (FY08 thru’ FY12) Impressive CAGR for key parameters (FY08 thru’ FY12) ParameterCAGR (FY08 thru’FY12) Assets24.96% Gross Profit31.02% Net Profit36.65% Net Worth28.90% Total Capital26.84% Tier-1 Capital34.13%

Sustained expansion of global branch network Sustained expansion of global branch network

Features of domestic branch network Features of domestic branch network In a year’s time (Sept’11 to Sept’12), the Bank added 529 brs to its domestic network comprising 120 in metro; 76 in urban; 205 in semi-urban & 128 in rural areas. During H1, FY13, the Bank opened 118 new brs (11 in metro, 10 in urban, 38 in semi-urban and 59 in rural areas) and merged one rural br in June, 2012 & converted that into a satellite unit. In the remaining part of FY13, the Bank plans to open 475 new brs with 241 brs in Tier-I & Tier-II centres & 234 brs in Tier-III to Tier-VI centres. Newly opened branches in H1, FY13 majorly belong to Eastern UP, Rajasthan, Maharashtra, Gujarat & Eastern states. Around 33.03% of the Bank’s network at the end-Sept, FY13 was situated in rural areas. Moreover, the Bank’s ATM tally improved from 1,800 at end-Sept, 2011 to 2,230 at end-June, Regional Break-up of Domestic Branches as on 30 th Sept, 2012 MetroUrbanSemi-UrbanRural ,0831,328

Deepening of overseas business.. Deepening of overseas business.. No. branches, offices, countries

Other strengths: Robust technology platform Other strengths: Robust technology platform Bank’s entire domestic, overseas and RRBs Framework is CBS-compliant All domestic branches are migrated to MPLS (Multi-Protocol Label Switching) network. New branches are directly opened in MPLS network Bank has IT facilities for online/offline account opening through Business Correspondents under Financial Inclusion. Bank’s retail e-banking portal has been made more use-friendly through enhancement of its look & feel for customers. Bank has implemented Internet Banking in 12 of its overseas territories, notably Oman, Tanzania, Uganda, Kenya, Mauritius, Seychelles, Botswana, New Zealand, UAE, Fiji, UK & Ghana. For provision of Safe Online Banking & to protect customers from Phishing Attacks, the Bank has implemented a Fraud Management Solution. A SMS alerts facility is also being provided to customers Bank has implemented a RaidFunds2India solution in all its major territories. Bank’s Mobile Banking (Baroda M-Connect) provides various facilities to its customers like balance- enquiry, mini-statements, linking of multiple accounts, funds’ transfer, bill payments, ticket booking, shopping, feedback facilities, etc. The IMPS facility is also being introduced for its customers. Bank’s Mobile Banking application is available on all Leading Brands including Blackberry, Android, iPhone and Windows; National Unified USSD Platform also being enabled thru’ mobile banking. Internet Payment Gateway is implemented by the Bank to facilitate E-commerce Transactions in multi currencies across the globe.

Other strengths: Robust technology platform Other strengths: Robust technology platform Bank’s ATM Switch is upgraded to handle increasing volume of ATM transactions ; the Bank’s ATM count has increased to 2,230 by 30 th Sept, 2012; its ATM switch also supports eight international territories. Bank has introduced a Rupay card. Bank has a Facility of Multiple Accounts being linked to a single Debit Card (verified by Visa, CVV2) and also a Mobile Number registration thru’ ATMs in CBS for the SMS Alerts. E-tax payments thru’ ATMs are also facilitated by the Bank and Mobile ATMs are introduced in several cities. Bank has set up two Contact Centres in Lucknow & Baroda to address customer queries and grievances speedily. Cash Management Solution is implemented to provide Operational Support to the Customers’ ALM. Anti Money Laundering (AML) is implemented in India and 21 of the Bank’s overseas territories. Bank has developed an Integrated Global Treasury Solution in its major territories like U.K., UAE, Bahamas, Bahrain, Hong Kong, Singapore, Belgium, USA and India to reduce the cost of operations and improve the fund management. Bank has a Centralised SWIFT system for India & its 22 overseas territories. The CTS -Cheque Truncation System is implemented in Delhi and a Grid based CTS System is implemented in Chennai, Coimbatore and Bangalore. Online Trading (Corporate & Retail) has been implemented in India.

Other strengths: Robust technology platform Other strengths: Robust technology platform ACPC (Automated Cheque Processing Centre) for centralised Inward / Outward clearing has been implemented in Mumbai, Surat and Ahmedabad regions of the Bank. Back Office functions are centralised in the Bank at its City Back Offices & ten Regional Back Offices (at Baroda, Jaipur, Lucknow, Bhopal, Coimbtore, Kolkata, Mumbai, Jamshedpur, New Delhi, Pune) to improve the service delivery to customers. RTGS & NEFT straight through processing has been implemented for all sponsored RRBs of the Bank. Bank’s intranet portal is revamped into a complete Knowledge Mgmt Solution for the employees’ benefit. Travel card has been introduced in Foreign Currency. Online loan applications have been rolled out for SME, Agriculture, Housing, Educational & Auto loans along with the facility of online tracking of these applications. Bank has built a State-of-the-Art Data Centre conforming to Uptime Institute Tier-3 standard and a Disaster Recovery Site in different seismic zones to ensure uninterrupted banking services to its customers. Various Technology projects like Virtualisation, Back-up Consolidation & RAC (Realtime Application Cluster) are being undertaken to support increasing business requirement. BoB IIT – an exclusive IT Training Centre has been set up in Ghandhinagar to educate the Bank’s Staff in all IT related products & services.

Other strengths: Rich human resource base …. Other strengths: Rich human resource base …. PeriodNo. of EmployeesNo. of Officers Ratio of Officers to Total Employees Q1, FY0936,34413, % Q2, FY0936,25513, % Q3, FY0936,04513, % Q4, FY0936,83813, % Q1, FY1037,00714, % Q2, FY1038,60914, % Q3, FY1037,03914, % Q4,FY1038,96014, % Q1, FY1138,55114, % Q2, FY1138,72415, % Q3, FY1138,62915, % Q4, FY1140,04615, % Q1, FY1240,25015, % Q2, FY1240,96716, % Q3, FY1241,34516, % Q4, FY , % Q1, FY1342,13616, % Q2, FY1343,58717, %

Other strengths: Steady improvement in capital strength Other strengths: Steady improvement in capital strength Capital Adequacy Ratio (Basel-II) Tier-I (%) Tier-II (%) Q1, FY %7.79%5.25% Q2, FY %7.57%5.00% Q3, FY %8.53%4.67% Q4, FY %8.49%5.56% Q1, FY %8.81%5.75% Q2, FY %8.86%5.81% Q3, FY %9.31%5.34% Q4,FY %9.20%5.16% Q1, FY %8.16%5.09% Q2, FY %8.16%5.06% Q3, FY %7.70%4.75% Q4, FY %9.99%4.53% Q1, FY %9.06%4.04% Q2, FY %8.82%3.91% Q3, FY %9.31%4.14% Q4, FY %10.83%3.84% Q1, FY %10.13%3.61% Q2, FY %9.57%3.34%

Other strengths: Relatively stronger presence in progressive states Other strengths: Relatively stronger presence in progressive states

Pattern of shareholding: 30 th Sept, 2012 BOB is a Part of the following Indexes BSE 100, BSE 200, BSE 500 & Bankex Nifty, BankNifty, CNX 100, CNX 200, CNX 500 BOB’s Share is also listed on BSE and NSE in the ‘Future and Options’ segment. As on 30 th Sept, 2012 Share Capital: Rs crore No. of Shares: million Net worth: Rs 28, crore (up 28.7%, y-o-y) B. V. per share: Rs (up 22.6%, y-o-y) Return on Equity: 16.9% in H1 & 18.02% in Q2, FY13

Sustained growth in financial value Sustained growth in financial value PeriodNet Worth Growth Rate (y-o-y) Q1, FY099, % Q2, FY0910, % Q3, FY0911, % Q4, FY0911, % Q1, FY1012, % Q2, FY1012, % Q3, FY1013, % Q4,FY1013, % Q1, FY1114, % Q2, FY1115, % Q3, FY1116, % Q4, FY1119, % Q1, FY1220, % Q2, FY1222, % Q3, FY1224, % Q4, FY1226, % Q1, FY1327, % Q2, FY1328, %

Bank has performed consistently well despite a non-supportive macro backdrop Economic IndicatorQ2, FY12Q3, FY12Q4, FY12Q1, FY13Q2, FY13 Real GDP growth (%) NA Agriculture (%) NA Industry (%) NA Services (%) NA Private Consumption Expenditure growth (%) (at current market prices) NA Gross Fixed Capital Formation (% to GDP) (at current market prices) NA SCB Credit growth (%, Avg Basis) SCB Deposit growth (%, Avg Basis) SCB Incremental Credit-Deposit Ratio (%, end-period) WPI-Inflation, Core Inflation (%) (end-period) (7.99) 7.74 (7.91) 7.69 (4.96) 7.25 (4.85) 7.81 (5.56) Trade Balance ( US $ Billion) Rupee-USD (%, end-period) Foreign Exchange Reserves (end- period, US $ Billion)

Total business growth from FY09.. In just three & a half years, the Bank’s total business has more than doubled.

Total deposit growth from FY09.. In just three & a half years, the Bank’s total deposits have grown 2.12 times.

Relatively well-protected domestic CASA share

Total advances growth from FY09.. In just three & a half years, the Bank’s total advances (net terms) have also more than doubled.

Steady gains in market share …..

Consistency in profit-making Consistency in profit-making During the last five years, the Bank’s Half-yearly Net Profit has grown at the rich CAGR of 30.0%.

Relatively lower NPL ratios in the industry Relatively lower NPL ratios in the industry Period Gross NPA (%) Net NPA (%) Q1, FY091.86%0.52% Q2, FY091.62%0.43% Q3, FY091.50%0.37% Q4, FY091.27%0.31% Q1, FY101.44%0.27% Q2, FY101.30%0.27% Q3, FY101.43%0.31% Q4,FY101.36%0.34% Q1, FY111.41%0.39% Q2, FY111.39%0.38% Q3, FY111.32%0.36% Q4, FY111.36%0.35% Q1, FY121.46%0.44% Q2, FY121.41%0.47% Q3, FY121.48%0.51% Q4, FY121.53%0.54% Q1, FY131.84%0.65% Q2, FY131.98%0.82%

Bank’s business: Sept’11 to Sept’12 Bank’s business: Sept’11 to Sept’12 Particular (Rs crore) Sept’11Mar’12Sept’12 Y-O-Y (%) Change Over Mar’12 (%) Global Business5,68,3066,72,2487,00, Domestic Business4,13,7534,82,2114,91, Overseas Business1,54,5521,90,0382,08, Global Deposits3,29,1853,84,8714,08, Domestic Deposits2,44,7202,80,1352,92, Overseas Deposits84,4661,04,7361,15, Global CASA Deposits90,1791,03,5241,05, Domestic CASA83,25092,94892, Overseas CASA 6,92910,57612, Share of Domestic CASA was at 31.75% in terms of Aggregate Deposits and at 33.43% in terms of Core Deposits as on 30 th Sept, 2012.

Bank’s business: Sept’11 to Sept’12 Bank’s business: Sept’11 to Sept’12 Particular (Rs crore) Sept’11Mar’12Sept’12 Y-O-Y (%) Change Over Mar’12 (%) Global advances (Net)2,39,1202,87,3772,92, Domestic Advances1,69,0342,02,0751,98, Overseas Advances70,08785,30293, Retail Credit Of which: 29,88535,66834, Home Loans13,30414,13314, SME Credit30,14934,51236, Farm Credit*22,04329,03625, Credit to Weaker Sections* 13,65015,86314, * As of Last Reporting Friday

Bank’s business: Sept’11 to Sept’12 Bank’s business: Sept’11 to Sept’12 Particular (Rs crore) Sept’11Mar’12Sept’12 Y-O-Y (%) Change Over Mar’12 (%) Global Saving Deposits68,54174,58077, Domestic Savings Deposits67,01372,57575, Overseas Savings Deposits1,5282,0042, Global Current Deposits21,63928,94427, Domestic Current Deposits16,23720,37217, Overseas Current Deposits 5,4018,57210,

Other highlights: Q2,FY12 versus Q2,FY13 Other highlights: Q2,FY12 versus Q2,FY13 Particular (in %)Q2, FY12 Q3, FY12 Q4, FY12 Q1, FY13 Q2, FY13 Global Cost of Deposits Domestic Cost of Deposits Overseas Cost of Deposits Global Yield on Advances Domestic Yield on Advances Overseas Yield on Advances

Other highlights: Q2, FY12 versus Q2,FY13 Other highlights: Q2, FY12 versus Q2,FY13 Particular (in %)Q2, FY12 Q3, FY12 Q4, FY12 Q1, FY13 Q2, FY13 Global Yield on Investment Domestic Yield on Investment Overseas Yield on Investment Global NIM Domestic NIM Overseas NIM

Key productivity indicators: Q2, FY12 versus Q2, FY13 Key productivity indicators: Q2, FY12 versus Q2, FY13 ParticularsQ2, FY12Q2, FY13 Business per Employee (Rs crore) Business per Branch (Rs crore) Profit per Employee (Rs lakh) Profit per Branch (Rs lakh)

Non-Interest income: Q2, FY12 and Q2, FY13 Non-Interest income: Q2, FY12 and Q2, FY13 (Rs crore)Q2, FY12Q2, FY13 % Change (Y-O-Y) Commission, Exchange, Brokerage Incidental Charges Other Miscellaneous Income Total Fee-Based Income Trading Gains Profit on Exchange Transactions Recovery from PWO Total Non-Interest Income

Provisions & contingencies: Q2, FY12 and Q2, FY13 Provisions & contingencies: Q2, FY12 and Q2, FY13 (Rs crore)Q2, FY12Q2, FY13 Absolute Change Provision for NPA & Bad Debts Written-off Provision for Depreciation on Investment Provision for Standard Advances Other Provisions (including Provision for staff welfare) Tax Provisions Total Provisions

Bank’s domestic treasury highlights: Q2, FY12 Bank’s domestic treasury highlights: Q2, FY12 Treasury Income stood at the level of Rs crore in Q2, FY13 up 87.5% (y-o-y). Out of this, Trading Gains stood at Rs crore in Q2, FY13 as financial market conditions improved significantly in Q2, FY13. As of Sept 30, 2012, the share of SLR Securities in Total Investment was 84.61%. The Bank had 81.80% of SLR Securities in HTM and 17.95% in AFS at end-Sept During the year FY13, the Bank shifted SLR securities worth Rs 1, cr (at book value) from AFS to HTM on 3 rd April and provided Rs cr as “depreciation” on shifting. The benchmark G-sec yield at the time of shifting ruled at 8.57%. The per cent of SLR to NDTL as on 30 th Sept, 2012 was 27.94%. As on 30 th Sept, 2012, the modified duration of AFS investments was 3.52 years & that of HTM securities was 5.07 years. Total size of Bank’s Domestic Investment Book as on 30 th Sept, 2012 stood at Rs 98,375 crore.

Highlights of overseas business: Q2, FY13 Highlights of overseas business: Q2, FY13 During H1, FY13, Bank’s “Overseas Business” contributed 29.8% to its Total Business, 24.7% to Gross Profit and 38.9% to Core Fee-based income (i.e., Commission, Exchanges, brokerage, etc.) Out of the Total Overseas Loan-book, 54.4% was Buyers’ Credit/ Export Credit; 26.3% in was Syndicated Loans (mostly to Indian corporates) & 19.3% was Local Credit. Less riskiness of the Overseas Loan-book was responsible in keeping Gross NPA (%) in Overseas Assets at 0.63% as on 30 th Sept, Even the Cost-Income Ratio in Overseas operations was more favourable at 16.44% in H1, FY13 versus 41.13% in Domestic operations. In Q2, FY13, the NIM (as % of interest-earning assets) in Overseas operations stood at the healthy level of 1.54%; Gross Profit to Avg. Working Funds ratio at 1.76% and Return on Equity at 17.26%. During H1, FY13, Bank opened branches in Wellington and Manukau, New Zealand; Entebbe and Kabale, Uganda, Rose Belle in Mauritius, Tema in Ghana and Sohar in Oman.

NPA movement (Gross): H1, FY13 NPA movement (Gross): H1, FY13 Particular( Rs crore) A. Opening Balance4, B. Additions during H1, FY132, Out of which, Fresh Slippages2, C. Reduction during H1, FY131, Recovery Upgradation PWO & WO Exchange Difference3.01 NPA as on 30 th Sept, 20125, Recovery in PWO in H1, FY

Sector-wise gross NPAs: End-Sept, FY12 & FY13 SectorGross NPA (%) End-Sept, FY12 Gross NPA (%) End-Sept, FY13 Agriculture4.58 Large & Medium Industries Retail Housing SSI (Mfg) Total MSME Overseas Operations

Cumulative position of restructured assets Cumulative position of restructured assets During the past 54 months (1 Apr’08 to 30 Sept’12), Bank has restructured 88,288 accounts amounting Rs 16, crore in its Domestic operations. Within this, the loans worth Rs cr were restructured in Q2, FY13; Rs cr in Q1, FY13; Rs 8, cr were restructured in FY12, Rs 1, cr were restructured in FY11, Rs 2, cr in FY10 & Rs 2, cr in FY09. For the period of 54 months, out of the total amount restructured, Rs 12, cr (75.4%) belonged to wholesale banking, Rs 2, cr (14.5%) to SMEs, Rs cr (3.7%) to retail and Rs 1, cr (6.3%) to agriculture sector. About 94 accounts (of Rs 1 crore & above) restructured on/after 1 st Apr, 2008 with aggregate outstanding of Rs 1, cr slipped to NPA after restructuring and most of them belonged to the SME segment. In net terms terms, the outstanding amount of restructured loans in the Bank’s Overseas Business was Rs 4, crore against 87 accounts as on 30/09/2012. Out of these twelve accounts were restructured during H1, FY13 involving the amount Rs crore.

Sectoral deployment of credit at end-Sept, 2012 Sectoral deployment of credit at end-Sept, 2012 Sector % share in Gross Domestic Credit Agriculture12.7 Retail16.9 SME18.2 Wholesale 37.8 Misc. including Trade 14.4 Total100.0%

Bank’s BPR Project - Navnirmaan Bank’s BPR Project - Navnirmaan Project Navnirmaan has altogether 18 activities covering both BPR & Organisational Restructuring, aimed at transforming the Bank’s branches into a sales & service centres to make possible a sustained sales growth, superior customer experience and alternate channel migration. The most important initiatives are- Conversion of all metro & urban branches into Baroda Next branches within a timeline [1,273 branches rolled out so far across 13 zones & 56 regions] Creation of automated & lean Back Offices like: City Back Office (Automated cheque processing introduced at Mumbai, Surat & Ahmedabad) Regional Back Office [Ten RBOs functioning (one in each zone); five RBOs opened during FY13]; for CASA opening [No. of brs linked – 2,210]; for issuance of personalised cheque books [ no. of brs linked – 3,185]. More than 6,500 CASA are being opened per day. Establishment of two Contact (or Call) Centres Introduction of frontline automation [Queue Management System & Cheque Deposit Machines] at select branches for customer convenience Creation of an Academy of excellence [Thru’ Training & Boot Camps] Organisational Restructuring [ Creation of Selling roles at branch, R.O. & Z.O.]

Bank’s BPR Project - Navnirmaan Bank’s BPR Project - Navnirmaan The initial impact of Baroda Next migration has been observed to be rewarding both in terms of increased customer satisfaction & CASA growth. The said impact has been sustained at 110 Baroda Next brs evaluated on sales, customer satisfaction, etc., during the first stage of evaluation. Another evaluation carried out recently at Baroda Next brs on (a) customer satisfaction [at 177 brs] and (b) employee satisfaction [at 171 brs] showed significant improvement. Further evaluation initiatives are on. A certification procedure for Baroda Next brs has been introduced for process compliance/adherence, etc.; CSAT/ESAT externally evaluated by engaging market research agencies. To sustain Sales growth, a new Sales Operating Model has been rolled out in 255 brs in Mumbai, Surat, Baroda, Ahmedabad, Delhi & Kanpur Out of 15 Mid Corporate Brs planned, 14 are already functional and one more is expected to be opened soon. Further centralisation initiatives are going to be piloted soon to enable the brs to become a “Sales-cum-Service” outlet. Bank’s Hi-Tech City Branch at Hyderabad has been transformed into an e-branch.

Bank’s HR initiatives Bank’s HR initiatives Recruitment – Bank’s HR Function has focused on hiring efforts on a sustained basis to bridge the “gap” created by superannuation and to cater to the Bank’s consistent business growth and branch expansion Bank’s Proposed New Hiring in FY13: 3,400 { 2,280 joined up to 30 th Sept, 2012} Probationary Officers: 600 { 403 joined up to 30/09/12} Specialist Officers: 150 { 25 joined up to 30/09/12} Baroda Manipal Trainees: 400 { 169 joined up to 30/09/12} Campus Recruitment: 250 { 220 joined up to 30/09/12} Clerks: 2,000 { 1,463 joined up to 30/09/12} Bank carried out a three-month long residential programme involving massive skills’ upgradation for its new recruits during FY13 with a focus on development of key banking skills covering the major areas like credit, forex operations, soft skills, etc. Other path-breaking initiatives in Employee Development & HR are – Baroda Next: A comprehensive leadership development training covering almost 1,500 leaders {all branch heads of urban/metro branches & AGMs/DGMs in the Bank Project Sparsh: A transformational HR project focusing on talent management, succession planning, creation of a scientific staffing model & manpower planning, capability building & performance management. Baroda-Manipal School of Banking: An innovative & new channel of resourcing of trained manpower in the Bank. Around 180 students are being inducted in this school every quarter for a focused grooming and a one- year full-time PG Course in Banking that is tailored to the Bank’s specific requirements.

Future Outlook & Guidance Future Outlook & Guidance Recently, India’s government hiked administered domestic diesel prices, resumed privatization & permitted FDI in multi-brand retail and aviation. RBI also cut the CRR, but kept the policy rates unchanged. Advancing of long-awaited reforms helped lift the stock market and the rupee. Due to delayed monsoon & weak external demand, India likely to grow in the band of 5.2% to 5.5% in FY13. At present, the growth in non-food credit is in the band of 15.0%-16.0% and deposits in 13.0%-14.0% and M3 around 13.0%. Bank of Baroda will continue with its cautious stance and try to grow at 1.0% to 1.5% over the banking industry’s average growth, given its strong presence in the industrially progressive states and the support it receives from its overseas operations. Strategic thrust will be on protecting the “Financial Soundness” that the Bank has consistently maintained throughout the past five years vitiated by global financial & economic turbulence. With a primary focus on risk management, improvement of systems & controls, liquidity and capital strength, development of human capital and customer-friendly branch structures, etc. Coming to the imminent change in the Top Leadership, I would like to give a quote of Walter Lippman ( a famous American Writer) – “The final test of a leader is that he leaves behind him in other men, the conviction and the will to carry on”. In the times to come, all Barodians will collectively prove that our revered leaders have passed the test with flying colours. Thank you.