1. PROJECT ON
“BANKING REGULATION ACT 1969”
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF DEGREE OF MASTERS OF COMMERCE
(M.COM) FROM THE UNIVERSITY OF MUMBAI
SUMBITTED BY
SHREERAJ HARIHARAN
M.COM PART-I (SEM-I)
ROLL NO 36
2013-2014
UNDER THE GUIDANCE OF
PROF. JAI KOTECHA
LORD UNIVERSAL COLLEGE,
TOPIWALA MARG, OFF STATION ROAD, GOREGAON (WEST),
MUMBAI, 400062
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2. DECLARATION
I MR SHREERAJ HARIHARAN student of LORD UNIVERSAL
COLLEGE, M.com Part-I (SEM I) hereby declare that I have completed project
on “BANKING REGULATION ACT 1969”, in the academic year 20132014.This information is true &original to best of my knowledge
Date:
signature of student
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3. Certificate
This is to certify that this project entitled BANKING REGULATION ACT
1969for subject ADVANCE FINANCIAL ACCOUNTING is done by
SHREERAJ HARIHARAN seat number 36 of M.com Part I Semester I in the
academic year 2013-2014 and being submitted to University of Mumbai
through LORD UNIVERSAL COLLEGE, Goregaon (west)
(PROF. JAI KOTECHA)
INTERNAL EXAMINER SIGNATURE
EXTERNAL EXAMINER SIGNATURE
(DR RUKI MIRCHANDANI)
Principal SIGNATURE
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4. Acknowledgement
With deep satisfaction and immense pleasure I am presenting this project report
on “BANKING REGULATION ACT 1969” in partial requirements for the
M.COM course.
I would like to extend my sincere gratitude and appreciation to my project guide
Prof. JAI KOTECHA who assisted me into this project. It has indeed been a
great experience working under her guidance during the course of the project. I
would like to thank her for his valuable advice and support throughout this
project.
And last but not the least I would like to thank all the Faculty Members, staff of
the institute for their help in making my project an unforgettable and great
learning experience.
Date:
signature of student
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5. CONTENTS
Introduction...........................................................................................................6
History……………..............................................................................................7
DEFINITION OF BANKS ………………………………….....................................9
Applicability of the Banking Regulation Act,
1949....................................................................................................................11
Banking Policy………………………………………………….......................14
Control of Management ………………………………………………………20
Bank of Baroda…………………………..........................................................22
History…...............................................................................................23
Statement of Consolidated Cash Flow for the year ended 31st March
2013.....................................................................................................24
DIRECTORS’ REPORT…................................................................................31
Financial Statement Of Bank Of Baroda............................................................33
Bibliography…………………………………………………………………..72
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6. INTRODUCTION
The Banking companies act, presently known as banking
regulation act was enacted owing to safeguard the interest of
depositors, control abuse of power by some bank personnel
controlling the banks in particular and to the interest of Indian
economy in general.
The Banking Regulation Act was passed as the Banking
Companies Act 1949 and came into force w.e.f 16.3.49.
Subsequently it was changed to Banking Regulations Act
1949 wef 01.03.66.
However, it should be remembered that this act does not
supersede the provision of companies act or any other law
for the time being in force in respect of banking business.
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7. HISTORY
Banking in India in the modern sense originated in the last
decades of the 18th century. The first banks were Bank of
Hindustan (1770-1829) and The General Bank of India,
established 1786 and since defunct.
The largest bank, and the oldest still in existence, is the
State Bank of India, which originated in the Bank of Calcutta
in June 1806, which almost immediately became the Bank of
Bengal. This was one of the three presidency banks, the
other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters
from the British East India Company. The three banks
merged in 1921 to form the Imperial Bank of India, which,
upon India's independence, became the State Bank of India
in 1955. For many years the presidency banks acted as
quasi-central banks, as did their successors, until the
Reserve Bank of India was established in 1935.
In 1969 the Indian government nationalized all the major
banks that it did not already own and these have remained
under government ownership. They are run under a structure
know as 'profit-making public sector undertaking' (PSU) and
are allowed to compete and operate as commercial banks.
The Indian banking sector is made up of four types of banks,
as well as the PSUs and the state banks; they have been
joined since 1990s by new private commercial banks and a
number of foreign banks.
Banking in India was generally fairly mature in terms of
supply, product range and reach-even though reach in rural
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8. India and to the poor still remains a challenge. The
government has developed initiatives to address this through
the State bank of India expanding its branch network and
through the National Bank for Agriculture and Rural
Development with things like microfinance.
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9. DEFINITION OF BANKS
In India, the definition of the business of banking has been
given in the Banking Regulation Act, (BR Act), 1949.
According to Section 5(c) of the BR Act, 'a banking company
is a company which transacts the business of banking in
India.' Further, Section 5(b) of the BR Act defines banking
as, 'accepting, for the purpose of lending or investment, of
deposits of money from the public, repayable on demand or
otherwise, and with drawable , by cheque , draft, order or
otherwise.'
This definition points to the three primary activities of a
commercial bank which distinguish it from the other financial
institutions. These are: (i) maintaining deposit accounts
including current accounts, (ii) issue and pay cheques, and
(iii) collect cheques for the bank's customer
Different provisions of Banking regulations Act
S. No.
Parts
Tocs
Sections covered
1.
I
Preliminary
1 to 5A
2.
II
Business of Banking Companies
6 to 36 A
3.
IIA
Control over management
36AA to
36AC
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10. 4.
IIB
Prohibition of certain activities in relation to banking Companies
36AD
5.
IIC
Acquisition of the undertakings of Banking Companies in certain cases
36AE to
36AJ
6.
III
Suspension of business and winding up of Banking Companies
36B to 45
7.
IIIA
Speedy provision for speedy disposal of winding up proceedings
45A to 45X
8.
IIIB
Provision relating to certain operation of Banking Companies
45Y to 45ZF
9.
IV
Miscellaneous
46 to 55A
10.
V
Application of the Act to cooperative Banks
56
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11. Applicability of the Banking Regulation Act, 1949
This Act applies to following categories of Banks
Nationalized Banks
Non-Nationalized Banks
Cooperative Banks
Business of banking Companies
Section 6(1) and 6(2) r.w. 56(b)
• Borrowing, raising or taking of money
• Giving advance
• Bills business
• L/C , Bank Guarantee, Indemnity
• Foreign exchange
• Providing safe deposit vaults
• Collecting and transmitting money
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12. • Managing, selling and realizing any property that may
come into the possession of the bank in satisfaction or
part satisfaction of any of its dues
• Acquiring, holding and dealing with any property or any
right, title or interest in any such property that may form
the security or part of the security for any loans or
advances or which may be connected with such security
Undertaking and executing trusts
• Acquiring, constructing, maintaining and altering of any
building for the purpose of the bank
• Acquiring and undertaking the whole or part of the
business of any person or bank / company if its nature of
business is as per the allowed business for the bank
• Doing all such other things as are incidental or conducive
to the promotion or advancement of the business of the
bank
• Any other business the Central Govt. may by notification
specify as a allowed business
• Banks are prohibited to do any other business
Use of words bank, banker, banking or banking
company
• No company other than a banking company shall use as
part of its name 15[or, in connection with its business] any
of the words bank, banker or banking and no company
shall carry on the business of banking in India unless it
uses as part of its name at least one of such words.
• No firm, individual or group of individuals shall, for the
purpose of carrying on any business, use as part of its or
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13. his name any of the words bank, banking or banking
company.
• Nothing in this section shall apply to-
(1)
a subsidiary of a banking company formed for one or
more of the purposes mentioned in sub-section (1) of
section 19, whose name indicates that it is a subsidiary of
that banking company;
(2)
any association of banks formed for the protection of
their mutual interests and registered under section 25 of
the Companies Act, 1956 (1 of 1956).]
Applicability against other laws
• Provisions of the Banking regulation Act, 1949 are not in
substitution of other laws applicable, unless otherwise
expressly said (Section 2 sub 56 (b)
• Act is not applicable to
– 1 Primary Agricultural Society
– 2 Co-operative Land Mortgage Bank
– 3 Any other co-operative society except as provided
by Sec. 56(Section 3)
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14. Banking Policy
•
“Banking Policy “means policy specified by RBI from time
to time in the interest of
• -Banking system
• -Monitory stability
• -Sound economic growth
• -Interest of depositors
• -Volume of deposits and other resources of the bank
• -Efficient use of the deposits and resources Section 5(ca)
Cash Reserve (CRR)
Section 18 r. w. 56 (j)
• Every bank is required to keep cash reserve, with itself or
by way of balance in the current account with RBI or
Central / District Co-operative Bank or net balance in all
such way, of minimum prescribed % amount of its DTL as
of last Friday of fortnight
• A return about this has to be submitted to RBI before
15thof each month about alternate Friday
SLR
(Statutory Liquidity Ratio)
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15. Bank shall maintain unencumbered approved securities,
valued not exceeding the current market price, or an amount
which shall not be less than 24% of the total of its demand
and time liabilities (DTL)
Restrictions on loans and advances
•
(1) Notwithstanding anything to the contrary contained in
section 77 of the Companies Act, 1956 (1 of 1956), no
banking company shall,
• (a) grant any loans or advances on the security of its own
shares, or
• (b) enter into any commitment for granting any loan or
advance to or on behalf of
• (i) any of its directors,
• (ii) any firm in which any of its directors is interested as
partner, manager, employee or guarantor, or
• (iii) any company [not being a subsidiary of the banking
company or a company registered under section 25 of the
Companies Act, 1956 (1 of 1956), or a Government
company] of which 61[or the subsidiary or the holding
company of which] any of the directors of the banking
company is a director, managing agent, manager,
employee or guarantor or in which he holds substantial
interest, or
• (iv) any individual in respect of whom any of its directors is
a partner or guarantor.
Licensing of banking companies
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16. • 68[(1) Save as hereinafter provided, no company shall
carry on banking business in India unless it holds a
licence issued in that behalf by the Reserve Bank and any
such licence may be issued subject of such conditions as
the Reserve Bank may think fit to impose.]
• (2) Every banking company in existence on the
commencement of this Act, before the expiry of six months
from such commencement, and every other company
before commencing banking business 69[in India], shall
apply in writing to the Reserve Bank for a licence under
this section.
Power to publish information
The Reserve Bank or the National Bank, or both, if they
consider it in the public interest so to do, may publish any
information obtained by them under this Act in such
consolidated form as they think fit.
Power of the Reserve Bank to give directions
• (1) Where the Reserve Bank is satisfied that—
• (a) in the 134[public interest]; or
• 135[(aa) in the interest of banking policy; or]
• (b) to prevent the affairs of any banking company
being conducted in a manner detrimental to the
interests of the depositors or in a manner prejudicial
to the interests of the banking company; or
• (c) to secure the proper management of any banking
company generally,
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17. • it is necessary to issue directions to banking
companies generally or to any banking company in
particular, it may, from time to time, issue such
directions as it deems fit, and the banking companies
or the banking company, as the case may be, shall
be bound to comply with such directions
• (2) The Reserve Bank may, on representation made
to it or on its own motion, modify or cancel any
direction issued under sub-section (1), and in so
modifying or cancelling any direction may impose
such conditions as it thinks fit, subject to which the
modification or cancellation shall have effect.
Amendments of provisions relating to appointments of
managing directors, etc., to be subject to previous
approval of the Reserve Bank.
• No amendment of any provision relating to the maximum
permissible number of directors.
• No appointment or re-appointment or termination of
appointment of a chairman.
• Further powers and functions of Reserve Banks.
• 1.(a) caution or prohibit banking companies or any
banking company in particular against entering into any
particular transaction or class of transactions, and
generally give advice to any banking company;
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18. • (b) on a request by the companies concerned and subject
to the provision of section 149[44A], assist, as
intermediary or otherwise, in proposals for the
amalgamation of such banking companies;
• (c) give assistance to any banking company by means of
the grant of a loan or advance to it under clause (3) of
sub-section (1) of section 18 of the Reserve Bank of India
Act, 1934 (2 of 1934);
• (2) The Reserve Bank shall make an annual report to the
Central Government on the trend and progress of banking
in the country, with particular reference to its activities
under clause (2) of section 17 of the Reserve Bank of
India Act, 1934 (2 of 1934), including in such report its
suggestions, if any, for the strengthening of banking
business throughout the country.
• (3) The Reserve Bank may appoint such staff at such
places as it considers necessary for the scrutiny of the
returns, statements and information furnished by banking
companies under this Act, and generally to ensure the
efficient performance of its functions under this Act.
Certain provisions of the Act not to apply to certain
banking companies.
• (1) The provisions of section II, sub-section (1) of section
12, and sections 17, 18, 24 and 25 shall not apply to a
banking company—
• (a) which, whether before or after the
commencement of the Banking Companies
(Amendment) Act, 1959 (33 of 1959), has been
refused a licence under section 22, or prohibited from
accepting fresh deposits by a compromise,
arrangement or scheme sanctioned by a court or by
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19. any order made in any proceeding relating to such
compromise, arrangement or scheme, or prohibited
from accepting deposits by virtue of any alteration
made in its memorandum; or
• (b) whose licence has been cancelled under section
22, whether before or after the commencement of the
Banking Companies (Amendment) Act, 1959 (33 of
1959).
• (2) Where the Reserve Bank is satisfied that any
such banking company as is referred to in subsection (1) has repaid, or has made adequate
provision for repaying all deposits accepted by the
banking company, either in full or to the maximum
extent possible, the Reserve Bank may, by notice
published in the Official Gazette, notify that the
banking company has ceased to be a banking
company within the meaning of this Act, and
thereupon all the provisions of this Act applicable to
such banking company shall cease to apply to it,
except as respects things done or omitted to be done
before such notice.]
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20. CONTROL OVER MANAGEMENT
• 36AA. Power of Reserve Bank to remove managerial and
other persons from office.
• (a)36AAA. Supersession of Board of directors of a multiState co-operative bank.
• (b)36AAB. Order of winding up of multi-State co-operative
bank to be final in certain cases
• (c)Reimbursement to Deposit Insurance Corporation by
liquidator or transferee bank
• 36AA. Power of Reserve Bank to remove managerial and
other persons from office.
• (a)36AAA. Supersession of Board of directors of a multiState co-operative bank.
 (b)36AAB. Order of winding up of multi-State co-operative
bank to be final in certain cases
• (c)Reimbursement to Deposit Insurance Corporation by
liquidator or transferee bank
• 36AB. Power of Reserve Bank to appoint additional
directors,
• 36AC. Part IIA to override other laws.
• 36AD. Punishments for certain activities in relation to
banking companies.
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21. SUSPENSION OF BUSINESS AND WINDING
UP OF BANKING COMPANIES
• High Court defined.
• Suspension of business.
• Winding up by High Court.
• Court liquidator.
• Reserve Bank to be official liquidator.
• Application of Companies Act to liquidators.
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22. BANK OF BARODA
Introduction
Bank
of
Baroda (BoB)
is
an
Indian stateowned banking and financial services company headquartered
in Baroda, or Vadodara. It offers a range of banking products
and financial services to corporate and retail customers through
its branches and through its specialized subsidiaries and
affiliates in the areas of retail banking, investment banking,
credit cards, and asset management. Its total global business
was 8,021 billion as of 31 March 2013, making it the second
largest Bank in India after State Bank of India In addition to its
headquarters in its home state of Gujarat, it has a corporate
headquarters in the Bandra Kurla Complex in Mumbai.
Based on 2012 data, it is ranked 715 on Forbes Global
2000 list.[4][5] BoB has total assets in excess of 3.58 trillion
(short scale), 3,583 billion (long scale), a network of 4283
branches (out of which 4172 branches are in India) and offices,
and over 2000 ATMs.
The bank was founded by the Maharaja of Baroda, H. H. Sir
Sayajirao Gaekwad III on 20 July 1908 in the Princely
State of Baroda, in Gujarat. The bank, along with 13 other
major commercial banks of India, was nationalized on 19 July
1969, by the Government of India and has been designated as
a profit-making public sector undertaking (PSU).
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23. History
In 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.
In 1997, BoB opened a branch in Durban. The next year 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. BoB
incorporate wholly owned subsidiary BOB Capital Markets Ltd.
for broking business.
In 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 and closed its Harrow Branch in London.
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24. Statement of Consolidated Cash Flow for the
year ended 31st March, 2013
(000's omitted)
Year ended
31.03.2013
A. Cash flow from operating
activities:
Net Profit before taxes
Adjustments for :
Depreciation on fixed assets
Depreciation on investments
(including on Matured debentures)
Bad debts written-off/Provision in
respect of non-performing assets
Provision for Standard Assets
Provision for Other items
(Profit) / loss on sale of fixed assets
Payment/provision for interest on
subordinated debt(treated separately)
Sub total
Adjustments for :
(Increase)/Decrease in investments
(Increase)/Decrease in advances
(increase)/Decrease in other assets
Increase/(Decrease) in borrowings
Increase/(Decrease) in deposits
Increase/(Decrease) in other
liabilities and provisions
Direct taxes paid (Net of Refund)
Year ended
31.03.2012
5248,36,93
6336,03,70
321,70,12
220,55,42
295,48,16
238,81,36
3501,01,53
1892,81,38
395,21,36
848,50,50
1,22,56
930,27,55
449,66,42
523,98,03
(79,87)
914,36,03
11466,85,97
10650,35,21
(39140,60,32) (12781,39,85)
(45049,07,56) (61884,83,95)
1889,31,06 (3545,00,45)
2852,58,41
1031,35,69
90022,94,80
81012,69,61
2981,82,56
1928,70,34
(1827,70,72)
(1774,47,81)
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25. Net cash from operating activities
(A)
B. Cash flow from investing
activities :
Purchase of fixed assets
Sale of fixed assets
Net cash from investing activities (B)
C. Cash flow from financing
activities :
Share capital
Share premium
Unsecured Subordinated Bonds
Dividend
Interest paid / payable on unsecured
redeemable bonds
Net cash from financing activities
(C)
Net increase in cash & cash
equivalents (A)+(B)+(C)
Cash and cash equivalents as at the
beginning of the year
Cash and cash equivalents as at the
end of the year
Notes:
1 Cash & Cash equivalents includes
Cash on hand, Balance with RBI &
Other banks and Money at call and
Short Notice.
2 Components of Cash & Cash
Equivalents
23196,14,20
14637,38,79
(560,09,92)
45,94,30
(514,15,62)
(456,14,17)
40,02,44
(416,11,73)
10,13,29
839,86,71
102,30,00
(812,29,04)
(930,27,55)
19,57,73
1625,11,20
188,37,19
(753,35,20)
(914,36,03)
(790,26,59)
165,34,89
21891,71,99
14386,61,95
65810,34,67
51423,72,72
87702,06,66
65810,34,67
As on 31st
March 2013
As on 31st
March 2012
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26. Cash & Balance with RBI
Balances with Banks and Money at
Call and Short Notice
14151,18,45
73550,88,21
22268,34,40
43542,00,27
Total
Key Financial Indicators
87702,06,66
65810,34,67
Particular
S.N
s (In
31.03.20 31.03.20 31.03.20 31.03.20 31.03.20
o. Percentag
09
10
11
12
13
e)
1
Interest
Income /
Average
Working
Funds
(AWF)
7.78%
6.86%
6.97%
7.58%
7.34%
2
Interest
Expenses /
AWF
5.14%
4.42%
4.16%
4.95%
4.98%
3
Net
Interest
Margin
(NIM)
2.91%
2.74%
3.12%
2.97%
2.66%
4
Interest
Spread /
AWF
2.64%
2.44%
2.80%
2.64%
2.36%
5
NonInterest
Income /
AWF
1.42%
1.15%
0.89%
0.87%
0.76%
6
Operating
1.84%
1.56%
1.47%
1.32%
1.24%
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27. Expenses /
AWF
7
Cost
Income
Ratio
45.38%
43.57%
39.87%
37.55%
39.79%
8
Gross
(Operating
) Profit /
AWF
2.22%
2.03%
2.22%
2.19%
1.88%
9
Net Profit /
AWF
1.15%
1.26%
1.35%
1.28%
0.93%
10
Return on
Net Worth
19.48%
22.19%
21.42%
19.11%
14.59%
11
Return on
Assets
0.98%
1.10%
1.18%
1.12%
0.82%
Return on
12 Average
Assets
1.10%
1.21%
1.33%
1.24%
0.90%
13
Yield on
Advances
9.50%
8.55%
8.48%
9.39%
8.90%
14
Cost of
Deposits
5.71%
4.90%
4.56%
5.62%
5.80%
Dividend
Payout
Ratio
15 (including
Corporate
Dividend
Tax)
17.22%
20.90%
17.76%
16.22%
23.65%
16 Credit --
81.94%
84.47%
86.77%
86.86%
82.03%
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28. Deposit
Ratio
Credit +
Non SLR
Investment
(excluding
Investment
17
87.44%
s in
Subsidiarie
s) -Deposit
Ratio
88.74%
90.29%
90.36%
86.17%
Capital
Adequacy
18
12.88%
Ratio
(BASEL I)
12.84%
13.02%
12.95%
12.09%
Tier - I
7.79%
8.22%
8.96%
9.56%
9.20%
Tier - II
5.09%
4.62%
4.06%
3.39%
2.89%
Capital
Adequacy
19 Ratio
(BASEL
II)
14.05%
14.36%
14.52%
14.67%
13.30%
Tier - I
8.49%
9.20%
9.99%
10.83%
10.13%
Tier - II
5.56%
5.16%
4.53%
3.84%
3.17%
Particular
S.No
s (In
31.03.20 31.03.20 31.03.20 31.03.20 31.03.20
.. Percentag
09
10
11
12
13
e)
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29. 1
Employee
s (number)
36838
38960
40046
42175
43108
2
Branches
(number)
2974
3148
3418
3959
4336
3
Business
per
employee
(Rs. in
crore)
8.63
9.81
12.29
14.66
16.89
4
Average
Business
per
employee
(Rs in
crore)
7.57
8.94
11.26
13.15
15.71
5
Gross
Profit per
employee
(Rs. in
lakhs)
11.69
12.67
17.43
20.35
20.88
6
Net Profit
per
employee
(Rs. in
lakhs)
6.05
7.85
10.59
11.87
10.39
7
Business
per branch
(Rs. in
crore)
112.86
132.24
156.27
169.80
184.98
8
Gross
Profit per
1.45
1.57
2.04
2.17
2.08
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30. branch
(Rs. in
crore)
9
Net Profit
per branch
(Rs. in
crore)
0.75
0.97
1.24
1.26
1.03
Earnings
10 per share
(Rupees)
61.14
83.96
116.37
127.84
108.84
Book
Value per
11
share
(Rupees)
313.82
378.44
505.71
637.37
729.11
30 | P a g e

31. DIRECTORS’ REPORT
"Your Directors have pleasure in presenting the One
Hundred and Fourth Annual Report of Your Bank with the
audited Balance Sheet, Profit & Loss Account and the
Report on Business and Operations for the year ended
March 31, 2013 (FY13)."
Performance Highlights

Total Business (Deposit+Advances) increased to Rs
8,02,069 crore reflecting a growth of 19.3% (y-o-y).

Gross Profit and Net Profit were Rs 8,999.15 crore and
Rs 4,480.72 crore respectively. Net Profit registered a
growth of -10.5% over previous year.

Credit-Deposit Ratio stood at 82.03% as against 86.86%
last year.

Retail Credit posted a growth of 6.7% constituting 16.6%
of your Bank’s Gross Domestic Credit in FY13.

MSME Credit posted a growth of 30.3% constituting
19.7% Gross Domestic Credit in FY13.

Net Interest Margin (NIM) as per cent of interest earning
assets in global operations was at the level of 2.66% and
in domestic operations at 3.11% during FY13.

Net NPAs to Net Advances stood at 1.28% this year
against 0.54% last year.

Capital Adequacy Ratio (CAR) as per Basel II stood at
13.30%.

Net Worth improved to Rs 30,714.19 crore registering a
rise of 17.2%.

Book Value improved from Rs 637.37 to Rs 729.11 on
year.
31 | P a g e

32. 
Business per Employee moved up from Rs 1,466 lakh to
Rs 1,689 lakh on year.
32 | P a g e

33. Financial Statement Of Bank Of Baroda
SCHEDULE -18 NOTES ON ACCOUNTS
A Disclosure in terms of RBI requirements
A-1. Capital
Particulars
Current Year
Previous Year
i) CRAR % Basel-II
14.67 %
14.52 %
ii) CRAR - Tier l Capital (%)
Basel-II
10.83 %
9.99 %
3.84 %
4.53 %
54.31 %
57.03 %
v) Amount of subordinated
debt raised as Tier-II
Capital
-
-
vii) Amount raised by issue
of IPDI
-
Rs. 711.50 Crores
viii) Amount raised by issue
of Upper Tier II instruments
-
Rs. 1,500.00 Crores
iii) CRAR – Tier ll Capital
(%) Basel-II
iv) Percentage of the
shareholding of the
Government of India
A-2. Investments
(Rs. in Crores)
Particulars
Current Year
Previous
Year
(1) Value of Investments
(i) Gross Value of Investments
(a) In India
(b) Outside India,
79,818.80
68,137.30
4,094.49
3,739.46
33 | P a g e

34. (ii) Provisions for Depreciation
(a) In India
553.80
336.96
(b) Outside India,
150.08
143.21
79,265.00
67,800.34
3,944.41
3,596.25
(i) Opening balance
480.17
527.80
(ii) Add: Provisions made during the year
343.55
112.08
(iii) Less: Write-off / write-back of excess
provisions during the year
119.84
159.71
(iv) Closing balance
703.88
480.17
(iii) Net Value of Investments
(a) In India
(b) Outside India.
2) Movement of provisions held towards
depreciation on investments
A-2.1 Repo Transactions (in face value terms)
2.1 a. Repo Transactions (LAF) with RBI
(Rs. in Crores)
Daily
Minimum
Maximum
Average
Outstanding
outstanding outstanding
outstanding as on March
during the during the
during the
2012
year
year
year
Securities
sold under
repo
i.
Government
securities
504.85
8,797.88
2,348.41
7,000.00
ii. Corporate
debt
securities
-
-
-
-
Securities
purchased
under
34 | P a g e

35. reverse repo
i.
Government
securities
304.71
6,690.55
129.58
-
ii. Corporate
debt
securities
-
-
-
-
A-2.2 Non-SLR Investment Portfolio
i) Issuer composition of Non SLR investments
(Rs. in Crores)
No
.
Issuer
(1)
(2)
Extent of
Extent of
Extent of Extent of
‘Below
Private
‘Unrated’ ‘Unlisted’
Amount
Investmen
Placemen
Securitie Securitie
t Grade’
t
s
s
Securities
(3)
(4)
(5)
(6)
(7)
(i) PSUs
1,061.36
427.06
-
-
107.08
(ii) FIs
1,024.96
853.58
73.64
-
73.64
(iii) Banks
4,687.40
847.30
408.85
64.06
97.20
2,339.47
1,146.50
790.66
214.80
159.05
Subsidiarie
(v) s /Joint
1,234.94
Ventures
1,234.94
-
-
-
4,194.55
376.30
955.33
50.88
305.25
-703.88
-
-
-
-
13,838.8
0
4,885.68
2,228.48
329.74
742.22
(iv)
Private
Corporate
(vi) Others
Provision
held
(vii
towards
)
depreciatio
n
Total
35 | P a g e

36. ii) Non-performing Non-SLR investments
(Rs. in Crores)
Particulars
Current Year
Opening balance
Previous
Year
250.70
231.58
88.85
21.71
-
2.59
Closing balance
339.55
250.70
Total provisions held
290.98
227.53
Additions during the year
Reductions during the year
A-2.3 Derivatives
A-2.3.1 Forward Rate Agreement / Interest Rate Swap
(Rs. in Crores)
Particulars
i)
The notional principal of swap agreements
ii)
Losses which would be incurred if
counterparties failed to fulfill their obligations
under the agreements
iii)
Collateral required by the bank upon entering
into swaps
iv)
v)
Current Previous
Year
Year
17,477.59 13,745.00
179.62
142.89
—
—
Concentration of credit risk arising from the
swaps
977.85
601.4
The fair value of the swap book
732.07
256.29
A-2.3.2 Exchange Traded Interest Rate Derivatives:
(Rs. in Crores)
Sr.
No.
Particulars
Amount
(i)
Notional principal amount of exchange traded interest
rate derivatives undertaken during the year
(instrument-wise)
A. Interest Rate Future (IRF)
445.37
(ii)
Notional principal amount of exchange traded interest
NIL
36 | P a g e

37. rate derivatives outstanding as on 31st March 2012
(instrument-wise)
(iii)
Notional principal amount of exchange traded interest
rate derivatives outstanding and not "highly effective"
(instrument-wise)
NIL
(iv)
Mark-to-market value of exchange traded interest
rate derivatives outstanding and not "highly effective"
(instrument-wise)
NIL
A-2.3.3 Disclosures on risk exposure in derivatives
(i) Qualitative Disclosure
The Treasury Policy of the bank lays down the types of financial
derivative instruments, scope of usages, approval procedures and the
limits like open position limits, stop loss limits and counter party
exposure limits for undertaking derivative transactions.
The Bank uses financial derivative transactions for hedging, its on or off
balance sheet exposures as well as for market making. Basically, these
products are used for hedging risk, reducing cost and increasing the
yield in such transactions and for proprietary trading.
The types of risk to which the bank is exposed to are credit risk, market
risk, country risk and operational risk, The Bank has risk management
policies (approved by Board of Directors of the Bank), which is
designed to measure the financial risks for transactions in the trading
book on a regular basis, by way of MTM, VaR and PV01, and to set
appropriate risk limits. These are monitored by means of reliable and up
to date Management Information Systems by the Risk Management
Department of the Bank from time to time who, in turn, appraises the
risk profile to the Risk management Committee of Directors, which is
presided over by the Bank’s Chairman and Managing Director.
The counter parties to the transactions are banks and corporate
entities. The deals are done under approved exposure limits. The bank
has adopted the current exposure method prescribed by Reserve Bank
37 | P a g e

38. of India for measuring Credit Exposure on Derivative products as per
which the bank sums the total replacement cost (obtained by mark to
market of all its contracts with positive value i.e. when the bank has to
receive money from the counter party) and an amount for potential
future changes in credit exposure calculated on the basis of the total
notional principal amount of the contract multiplied by the relevant credit
conversion factors according to the residual maturity as detailed herein
under:-
Conversion factor to be applied on notional principal amount
Residual Maturity
Interest Rate Contract
Exchange Rate
Contract
Less than one year
0.50%
2.00%
One year and above
1.00%
10.00%
Over five years
3.00%
15.00%
The hedge/non-hedge (market making) transactions are recorded
separately. Hedging derivatives are accounted for on an accrual basis.
Trading derivative positions are marked-to-market (MTM) and the
resulting losses, if any, are recognized in the Profit and Loss Account.
Profit, if any is not recognized. Income and Expenditure relating to
interest rate swaps are recognized on the settlement date. Gains/losses
on termination of the trading swaps are recorded on the termination
date as income/expenditure.
(ii) Quantitative Disclosures
(Rs. in Crores)
Sr.
No.
Particulars
Currency Interest rate
Derivatives Derivatives
Derivatives (Notional Principal
Amount)
422.78
17,177.27
a) For hedging
300.34
9,228.38
b) For trading
(i)
122.44
7,948.89
22.11
604.84
(ii) Marked to Market Positions (1)
38 | P a g e

39. a) Asset (+)
26.89
724.9
b) Liability (-)
-4.78
-120.06
32.75
963.43
0.44
452.05
a) On hedging derivatives
-0.02
275.61
b) On trading derivatives
0.46
176.44
(iii) Credit Exposure (2)
(iv)
(v)
Likely impact of one percentage
change in interest rate (100*PV01)
Maximum and Minimum of 100*PV01
observed during the year
1.61&0.46 256.01&172.33
a) On hedging
- 100.29&53.19
b) On trading
1.61&0.46 189.21&122.24
A-2.4 Asset Quality
A-2.4.1 Non-Performing Asset
A. Movement of NPAs
(Rs. in Crores)
Current Previous
Year
Year
Gross NPAs as on 1st April 2011
(Opening Balance)
3,152.50 2,400.69
Additions (Fresh NPAs) during the year
3,443.31 1,897.01
Sub-Total (A)
6,595.81 4,297.70
Less : (i)
Upgradations
335.55
189.17
(ii)
Recoveries (excluding recoveries made
from upgraded accounts)
580.46
455.49
(iii)
Write-offs
1,215.05
500.54
Sub-total (B)
2,131.06 1,145.20
Gross NPAs as on 31st March 2012
(closing balance) (A-B)
4,464.75 3,152.50
B) Non-Performing Assets
(Rs. in Crores)
Particulars
Current
Previous
39 | P a g e

40. Year
(i) Net NPAs to Net Advances (%)
Year
0.54
0.35
(a) Opening balance
3,152.50
2,400.69
(b) Additions during the year
3,443.31
1,897.01
(c) Reductions during the year
2,131.06
1,145.20
(d) Closing balance
4,464.75
3,152.50
790.88
602.32
(b) Additions during the year
1,988.72
718.15
(c) Reductions during the year
1,235.96
529.59
(d) Closing balance
1,543.64
790.88
(a) Opening balance
2,361.62
1,798.37
(b) Provisions made during the year
1,836.42
1,178.86
(c) Write-off/ write-back of excess provisions
1,276.93
615.61
(d) Closing balance
2,921.11
2,361.62
(ii) Movement of NPAs (Gross)
(iii) Movement of Net NPAs
(a) Opening balance
(iv)
Movement of provisions for NPAs (excluding
provisions on standard assets)
C) Sector-wise NPAs
Sl.
No.
Sector
Percentage of
NPAs to Total
Advances in that
sector
Current Previous
Year
Year
1 Agriculture & allied activities
3.99
3.47
2 Industry (Micro & small, Medium and Large)
1.12
1.76
3 Services
2.72
1.22
4 Personal Loans
3.66
1.72
D) Overseas Assets, NPAs and Revenue
(Rs.in Crores)
40 | P a g e

41. Particulars
Total Assets
Current Year Previous Year
12,7861.71
582.92
Total NPAs
Total Revenue
90,767.70
366.27
4,032.74
2,951.23
A- 2.4.2 Particulars of Accounts Restructured.
(Rs. in Crores)
CDR
SME Debt
Others
Mechanism Restructuring
No. of Borrowers
Standard
advances Amount outstanding
restructured
Sacrifice (diminution
in the fair value)
No. of Borrowers
Sub
standard
Amount outstanding
advances
restructured Sacrifice (diminution
in the fair value)
No. of Borrowers
Doubtful
advances Amount outstanding
restructured
Sacrifice (diminution
in the fair value)
No. of Borrowers
TOTAL
16
(3)
1,534.03
(166.01)
277
(203)
9,620
(9,786)
505.76 6,813.28
(487.22) (2,189.38)
262.81
(11.06)
4.27
(4.91)
33.67
(52.74)
(1)
6
(22)
2042
(129)
(154.24)
17.04
(12.9)
5.09
(4.42)
(4.5)
0.07
(0.16)
0.19
(0.1)
(-)
2
(13)
40
(109)
(-)
1.93
(0.01)
2.06
(11.91)
(-)
(0.01)
0.1
(0.12)
16
(4)
285
(238)
11702
(10024)
Amount outstanding
1,534.03
(320.25)
Sacrifice (diminution
in the fair value)
262.81
(15.56)
524.73 6,820.43
(500.13) (2,205.71)
4.34
(5.08)
33.96
(52.96)
41 | P a g e

42. Figures in bracket denote previous year numbers
* In respect of one restructured account, the bank shall amortize the
provision towards diminution in fair value of the said advance and the
additional provision required for restructured standard asset over a
period of 8 quarters starting from the first quarter of financial year 20122013 as per the directives from Reserve Bank of India vide their letter
dated 2nd April 2012.
A-2.4.3 Details of financial assets sold to Securitization /
Reconstruction Company or Asset Reconstruction
(Rs. in Crores)
Current
Year
Particulars
(i) No. of accounts
Previous
Year
3
3
-
-
6.52
5.05
Additional consideration realized in respect
of accounts transferred in earlier years
-
-
(v) Aggregate gain / (loss) over net book value
6.52
5.05
(ii)
Aggregate value (net of provisions) of
accounts sold to SC / R C
(iii) Aggregate consideration
(iv)
A-2.4.4 Details of non-performing financial assets purchased/sold
A. Details of non-performing financial assets purchased:
(Rs. in Crores)
Particulars
Current Year Previous Year
1. (a) No. of accounts purchased during
the year
-
-
(b) Aggregate outstanding
-
-
2. (a) Of these, number of accounts
restructured during the year
-
-
(b) Aggregate outstanding
-
-
B. Details of non-performing financial assets sold:
42 | P a g e

43. (Rs. in Crores)
Particulars
Current Year
1. No. of accounts sold
2. Aggregate outstanding
Previous Year
3
3
68.33
8.07
6.52
5.05
3. Aggregate consideration
received
A-2.4.5 Provisions on Standard Asset
(Rs. in Crores)
Item
Provisions towards Standard Assets as per RBI
norms
Current
Year
1,390.06
Previous
Year
911.35
A.2.5 Business Ratios
(Rs. in Crores)
Particulars
Current Previous
Year
Year
(i)
Interest Income as a percentage to Average
Working Funds
7.58
6.97
(ii)
Non-interest income as a percentage to
Average Working Funds
0.87
0.89
(iii)
Operating Profit as a percentage to Average
Working Funds
2.19
2.22
1.24
1.33
14.66
12.29
0.12
0.11
(iv) Return on Assets
(v)
Business (Core Deposits plus advances) per
employee (Rs in Crores)
(vi) Profit per employee (Rs. in Crores)
A. 2.6 Maturity pattern of certain items of assets and liabilities (As
compiled by the management and relied upon by the auditors)
(Rs. in Crores)
1
2 to 8 to 15 to 29 Over Over Over Over Over Total
43 | P a g e

44. day
292
5.19
Depo
(681
sits
0.06
)
7
14 28
days 3
days days days to 3 mon
mon ths
ths & up
to 6
mon
ths
2123
9.74
(156
85.4
8)
6
mon
ths
& up
to 1
year
1
year
& up
to 3
year
s
1011
1100 1432
4689
6978
5752
86.0
3.69 9.7
9.67
2.9
4.98
9
(141 (115
(318
(582
(350
(787
59.6 74.8
80.7
93.1
87.6)
69.3
1)
6)
4)
5)
6)
221
6010 8268 6769
9.76
Adva
.72 .23 .28
(318
nces
(405 (471 (516
9.22
5.21) 9.87) 5.89)
)
3796
9.99
(270
56.9
5)
3123
8.21
(292
23.8
1)
3
5
year year
s&
s
up
to 5
year
s
1448
0.81
(104
17.8
1)
4549
8.33
(427
60.8
1)
3848
71.11
(3054
39.48
)
3090 8955 3129 4314 2873
9.28 0.2 8.26 3.37 77.29
(301 (433 (289 (527 (2286
60.5 14.6 91.2 98.9 76.36
5)
3)
4)
9)
)
1059 4852
419 1186 290. 764. 5737 1231 1633 1282
8320
Invest
3.25 4.47
.65
.93
33
51 .41 .49
.1 8.27
9.4
ment
(139 (420
(308 (102 (261. (473. (288 (107 (199 (730
(7126
s
21.9 10.4
.78) 1.37) 94) 73) 8.74) 7.89) 4.7) 1.1)
0.63)
3)
4)
1062
61.0 508. 39.3 25.4 1751 2387 2042 1399 4729
2357
8.26
Borro 3
8
2
4 .06 .02 .77 .66 .69
3.05
(126
wings (324 (451. (71.9 (293. (154 (230 (46.2 (273 (186
(2230
69.9
.42)
79)
2) 75) 3.06) 5.3)
4) 9.36) 2.08)
7.85)
1)
Forei
gn
Curre
ncy
asset
s
854
5.19
(964
1.29
)
2916
1021 4883 6054
4.67
2.72 .32 .54
(230
(507 (277 (535
54.0
7.95) 8.3) 3.27)
9)
2382
6.91
(167
15.2
4)
1511 1804 1217
1331
5106
9.83 8.4 0.83
32.84
.43
(161 (106 (106
(1068
(663
87.1 77.7 88.6
09.82
6.2)
2)
4)
2)
)
Forei 173 1755 5960 5852 2710 2269 2193 4997 1656 8926 1333
gn
7.17 6.76 .54 .08 5.95 0.71 7.97 .56 7.48 .66 32.88
44 | P a g e

45. Curre (959 (892 (323 (605 (160 (180 (134 (114 (118 (102 (1089
ncy
1.3) 8.37) 1.94) 7.93) 73.1 28.6 64.9 83.1 53.4 47.8 60.83
liabilit
7)
3)
7)
7)
5)
9)
)
ies
• Figures in bracket denote previous year numbers
• The distribution of Assets and Liabilities has been done as per the
“Asset Liability Management and Group Risk Policy-2011” of the Bank
• The Distribution of provisions and other deductions, while arriving at
the net advances, has been done in proportion to the gross Standard
Advances.
• Distribution of provision on foreign currency liabilities has been done in
proportion to the distribution of the parent liability.
A-2.7 Exposures
A-2.7.1 Exposure to Real Estate Sector
(Rs. in Crores)
Category
Current Year
Previous
Year
a) Direct exposure
(i) Residential Mortgages –
Lending fully secured by mortgages on
residential property that is or will be
occupied by the borrower or that is rented;
Of which Individual housing loans eligible
for inclusion in priority sector
(ii) Commercial Real Estate –
15,729
13,085.20
(9,880.57)
(8,074.83)
5,834.96
6,082.45
Lending secured by mortgages on
commercial real estates (office buildings,
retail space, multi-purpose commercial
premises, multi-family residential buildings,
multi-tenanted commercial premises,
industrial or warehouse space, hotels, land
acquisition, development and construction,
etc.). Exposure would also include nonfund based (NFB) limits;
45 | P a g e

46. (iii) Investments in Mortgage Backed
Securities (MBS) and other securitised
exposures –
a. Residential,
0.41
17.84
13.13
43.54
83.18
10.00
5,496.72
4,618.91
27,157.40
23,857.95
b. Commercial Real Estate.
b) Indirect Exposure
Fund based and non-fund based
exposures
(i) National Housing Bank (NHB)
(ii) Housing Finance Companies (HFCs)
Total Exposure to Real Estate Sector
A-2.7.2 Exposure to Capital Market
(Rs. in Crores)
Items
Current Previous
Year
Year
Direct investment in equity shares,
convertible bonds, convertible debentures
and units of equity-oriented mutual funds the
corpus of which is not exclusively invested in
corporate debt;
1,846.09
1,361.79
Advances against shares/bonds/ debentures
or other securities or on clean basis to
individuals for investment in shares
(ii)
(including IPOs/ESOPs), convertible bonds,
convertible debentures, and units of equityoriented mutual funds;
70.60
12.16
Advances for any other purposes where
shares or convertible bonds or convertible
(iii)
debentures or units of equity oriented mutual
funds are taken as primary security;
12.57
4.80
Advances for any other purposes to the
extent secured by the collateral security of
(iv)
shares or convertible bonds or convertible
debentures or units of equity oriented mutual
116.39
5.37
(i)
46 | P a g e

47. funds i.e. where the primary security other
than shares/convertible bonds/convertible
debentures/units of equity oriented mutual
funds Rs does not fully cover the advances
Secured and unsecured advances to
(v) stockbrokers and guarantees issued on
behalf of stockbrokers and market makers
159.72
206.46
Loans sanctioned to corporates against the
security of shares / bonds/debentures or
other securities or on clean basis for meeting
(vi)
promoter’s contribution to the equity of new
companies in anticipation of raising
resources;
-
123.74
Bridge loans to companies against expected
equity flows/issues;
-
0.13
Underwriting commitments taken up by the
banks in respect of primary issue of shares
(viii) or convertible bonds or convertible
debentures or units of equity oriented mutual
funds;
0.60
-
(ix) Financing to stockbrokers for margin trading
1.90
150.11
731.52
741.88
2,939.39
2,606.44
(vii)
(x)
All exposures to Venture Capital Funds (both
registered and unregistered)
Total Exposure to Capital Market
The exposure to Capital Market of Rs. 2,939.39 Crores is within the limit
of Rs. 7,900.25 Crores (i.e. 40% of Bank’s Net worth Rs.19,750.63
Crores as on 31.03.2011). The direct exposure to Capital Market is Rs.
2,663.28 Crores and is within 20% of the Bank’s Net Worth
(Rs.3,950.12 Crores).
A-2.7.3 Risk Category wise Country Exposure
(Rs. in Crores)
Category
Exposure
(net) as at
Provision
held as at
Exposure
(net) as at
Provision
held as at
47 | P a g e

48. 31st March
2012
31st March
2012
31st March
2011
31st March
2011
Insignificant
16,820.37
8.78
11,525.14
5.19
Low
13,082.91
13.85
11,681.36
12.22
479.44
-
769.28
-
62.23
-
337.49
-
Very High
1,577.95
-
1,212.04
-
Restricted
22.05
-
6.66
-
Off-credit
0.38
-
0.06
-
32,045.33
22.63
25,532.03
17.41
Moderate
High
Total
A-2.7.4 Single Borrower Limit (SBL)/ Group Borrower Limit (GBL)
exceeded by the bank.
(Rs. in Crores)
Name of the Single Borrower
Year
borrower Exposure Limit
Balance as on
31st March
2012
Total Limit
Sanctioned
201112
-
-
-
-
201011
-
-
-
-
Name of the Group Borrower
Year
borrower Exposure Limit
Balance as on
31st March
2011
Total Limit
Sanctioned
201112
-
-
-
-
201011
-
-
-
-
A-2.7.5 Amount of Unsecured Advances
The amount of advances, for which intangible securities, such as
charge over the rights, licenses, authority etc. have been taken as
48 | P a g e

49. security is Rs. 1033.30 Crores and the same has been classified as
unsecured, forming part of unsecured advances as reflected in
schedule 9 of the balance sheet. Such advances to total unsecured
advances are 2.20 %.
One account with unsecured loan of Rs.277.23 Crores has intangible
collateral valued at Rs. 1099.28 Crores as per valuation report dated
23.04.2010. In respect of other accounts for unsecured outstanding of
Rs. 756.07 Crores, the estimated value of intangible security is not
taken.
A-2.7.6 Concentration of Deposits, Advances, Exposures and
NPAs
2.7.6. a) Concentration of Deposits
(Rs. in Crores)
Current
Previous
Year
Year
Total Deposits of twenty largest depositors
Percentage of Deposits of twenty largest
depositors to Total Deposits of the bank
36,576.98
30,464.99
9.50
9.97
2.7.6. b) Concentration of Advances
(Rs. in Crores)
Current
Previous
Year
Year
Total Advances to twenty largest borrowers
Percentage of Advances to twenty largest
borrowers to Total Advances of the bank
42,897.70
36,312.71
10.22
11.19
2.7.6. c) Concentration of Exposures
(Rs. in Crores)
Current Previous
Year
Year
49 | P a g e

50. Total Exposure to twenty largest
borrowers/customers
44,872.71 38,237.82
Percentage of Exposures to twenty largest
borrowers/customers to Total Exposure of the
bank on borrowers/customers
8.99
9.73
2.7.6. d) Concentration of NPAs
(Rs. in Crores)
Previous
Current Year
Year
Total Exposure to top four NPA accounts
709.92
383.89
2.7.6. e) Provision Coverage Ratio
(Rs. in Crores)
Previous
Current Year
Year
PCR to Gross NPA (including technical
write-off)
80.05%
85.00%
A-2.8 Miscellaneous
A-2.8.1 Amount of Provisions for Taxation during the year
(Rs. in Crores)
Current Year
Provision for Tax including Wealth tax &
deferred tax
Less reversal of Tax provisions relating to
previous years
Net Provision for tax
Previous
Year
1,443.98
1,652.91
425.14
244.27
1,018.84
1,408.64
A-2.8.2 Disclosure of penalties imposed by RBI
During the financial year 2011-12, the bank has not been subjected to
any penalty for contravention or non-compliance with any requirement
50 | P a g e

51. of the Banking Regulation Act, 1949, or any rules or conditions specified
by the Reserve Bank of India in accordance with the said Act.
A-2.8.3 Off-balance sheet SPVs sponsored (which are required to
be consolidated as per accounting norms)
Name of the SPV sponsored
Domestic
Overseas
NIL
NIL
A-3. SLR Investments:
(Rs. in Crores)
Previous Year
Current Year
Book
Value
Govt. sec SLR(CG,SG
69,207.34
& TB)*
Approved sec-SLR
163.26
Market
Value
Book
Value
Market
Value
69207.34
59404.47
59404.47
163.26
540.70
536.28
*incl. SLR Securities kept with CCIL/ MCX / USE / NSE
A-4. Break up of Provisions and Contingencies
A-4.1 The break-up of provisions and contingencies appearing in Profit
& Loss Account is as under:
(Rs. in Crores)
Particulars
Provision for depreciation on investment
Bad debts written off / Provision made towards
NPA
Provision for standard assets
Provision for taxes (including deferred taxes,
and Wealth tax)
Current
Year
Previous
Year
236.33
9.01
1,568.87
1,055.47
448.17
223.85
1,018.84
1,408.64
Other Provision and Contingencies
51 | P a g e

52. Provision towards sacrifice of interest in
restructured standard and sub-standard
accounts
296.32
-4.87
Provision for Country Risk Management
5.22
2.06
25.00
15.00
-25.08
30.76
3,573.67
2,739.92
Provision for staff welfare expenses
Others
Total
A-4.2 Floating Provisions – Comprehensive Disclosures
(Rs. in Crores)
Particulars
a. Opening balance in the floating provisions
account
Current
Year
Previous
Year
850.35
550.35
b. The quantum of floating provisions made in
the accounting year
-
300.00
c. Amount of draw down made during the
accounting year
-
-
850.35
850.35
d. Closing balance in the floating provisions
account.
A-4.3 Draw Down from Reserves
During the financial year 2011-12, there has been no draw down from
Reserves.
A-5. Disclosure of complaints
I. Customer Complaints
Particulars
(a) No. of complaints pending at the
beginning of the year
(b) No. of complaints received during the
year
Current
Year
Previous
Year
160
91
11365
6239
52 | P a g e

53. (c) No. of complaints redressed during the
year
10889
6170
(d) No. of complaints pending at the end of
the year
636*
160
* out of these 525 complaints are pending for less than 30 days.
II. Awards passed by the Banking Ombudsman
Current
Year
Previous
Year
(a) No. of unimplemented Awards at the
beginning of the year
01
02
(b) No. of Awards passed by the Banking
Ombudsman during the year
12
21
(c) No. of Awards implemented during the
year
09
22
(d) No. of unimplemented Awards at the end
of the year
04
01
Particulars
A-6. Status of Letters of Comfort
I Letters of Comfort (LOC’s) issued during the Current Financial
Year.
During the current financial year Bank has not issued any Letter of
Comfort to meet the requirements of the overseas/domestic regulators
while seeking their approval for establishing subsidiaries / opening of
branches.
II Cumulative position of LOC’s outstanding on 31.03.2012
The Bank has issued the following Letter of Comforts
(i) During financial year 2008-09 to meet the requirements of the
overseas/ domestic regulators while seeking their approval for
establishing subsidiaries/ opening of branches, the Letter of Comfort
was issued to Reserve Bank of New Zealand for the Bank’s subsidiary
in that country As per audited accounts as on 31.03.2012, the deposits
53 | P a g e

54. of the subsidiary are Rs. 80.90 Crores and outside liabilities are Rs.0.46
Lacs The LOC issued by Bank of Baroda covers this entire amount of
Rs. 81.36 Crores i.e. deposit and outside liabilities. However, the net
worth of the subsidiary is Rs.170.33 Crores and as such there is no
liability arising on account of operations of the subsidiary for the period
ended 31st March 2012.
(ii) During financial year 2010-11, the Bank has issued Letter of comfort
to the Bank of Negara Malaysia to the extent of the Bank’s 40%
shareholding in the joint venture Bank – India International Bank
(Malaysia) Bhd’ (IIBMB)- The Bank is yet to commence operations and
therefore no financial liabilities arise to Bank of Baroda.
A-7 Income earned for marketing third party products
(Rs. in Crores)
Nature of Income
Current Year Previous Year
For selling life insurance policies
19.30
23.42
For selling non life insurance policies
11.33
11.50
For selling mutual fund projects
1.73
1.82
Equity broking product
0.46
0.82
Bancassurance Business
0.21
2.48
A-8 Sale of Investment held under Held to Maturity (HTM) Category
in excess of 5% of the Book value of the investment held in HTM
category at the beginning of the year
Opening Bal.
Sale/
Market value of
Closing Bal. of
of investment transfer
investment
Addition Investment
(HTM)
during the
(HTM) category
(HTM) 31.03.12
01.04.2011
year
31.03.12
-
-
-
-
-
A-9 Disclosure on imposition of penalty for bouncing of SGL forms
Year ended
Date of bouncing SGL form
Amount Remarks
54 | P a g e

55. 2012
-
-
-
-
2011
-
-
-
-
B. Disclosure in terms of Accounting Standards (AS) issued by the
Institute of Chartered Accountants of India:
B-1. Employee Benefits (AS-15)
B- 1.1 The Bank has adopted the Accounting Standard (AS-15) issued
by ICAI, effective from 07.12.2006. The standard has been revised and
notified on 17.12.2007. The provisions contained in AS-15 give option to
the bank, to charge the transitional liability as an expense in its Profit
and Loss Account spread over a period of 5 years. Bank has exercised
this option and accordingly made an incremental provision for employee
benefits such as pension, gratuity, leave encashment and other
retirement benefits to the extent of 1/5th of the total transitional liability
commencing from financial year 2007-08, which is crystallized on
Actuarial valuation at Rs.901.00 Crores, which has been fully provided
as on March 31, 2012
B-1.2 GRATUITY
The Bank pays gratuity to employees who retire or resign from Bank’s
service, after initial service period of five years. Accordingly, the Bank
makes contributions to an in-house trust, towards funding this gratuity,
payable every year. In accordance with the gratuity fund’s rules,
actuarial valuation of gratuity liability is calculated based on certain
assumptions regarding rate of interest, salary growth, mortality and staff
attrition as per the projected unit credit actuarial method.
The investment of the funds is made according to investment pattern
prescribed by the Government of India. The gratuity payable is worked
out by way of 3 different schemes and the entitlement is based on what
is most beneficial to employees.
B- 1.3 PENSION
B. 1.3.1 Bank of Baroda pays pension, a defined benefit plan covering
55 | P a g e

56. the employees who have opted for pension and also to the employees
joining the bank’s service on or after 29.9.1995 but before 01.04.2010.
The plan provides for a pension on a monthly basis to these employees
on their cessation from Bank’s service in terms of Bank of Baroda
(Employees’) Pension Regulations, 1995. Employees covered under
Bank of Baroda (Employees’) Pension Regulations, 1995 are not
eligible for Bank’s contribution to Provident fund.
B. 1.3.2 New Pension Scheme
In terms of Bipartite Settlement and Joint Note dated 27.04.2010
between IBA and Employees Organisations’ on extending another
option for pension, employees joining the services of the Bank on or
after 01.04.2010 are eligible for the Defined Contributory Pension
Scheme, which is introduced by the Bank in terms of the Joint Note /
Settlement dated 27.04.2010, similar to the one governed by the
provisions of New Pension Scheme introduced for the employees of
Central Government w.e.f. 01.01.2004 and as modified from time to
time. Hence they are not eligible for becoming members of Bank’s
Provident Fund Scheme and Pension Scheme. In respect of the
employees of the Bank who have joined the services of the Bank on or
after 01.04.2010, deduction towards New Pension Scheme at the rate
of 10% of the pay and Dearness Allowance from the salary with a
matching contribution by Bank is being made.
B-1.3.3 Prudential Regulatory treatment (reopening of Pension)
During the year 2010-11, the Bank had reopened the pension option for
such of its employees who had not opted for the pension scheme
earlier. As a result of exercise of which by 18,989 employees, the Bank
had incurred a liability of Rs.1829.90 Crores.
In terms of the requirements of AS 15 - Employee Benefits, the entire
amount of Rs.1829.90 Crores was required to be charged to the Profit
and Loss Account. However, the RBI had issued a circular no.
DBOD.BP.BC.80/21.04.018/2010-11 on Re-opening of Pension Option
to Employees of Public Sector Banks and Enhancement in Gratuity
Limits – Prudential Regulatory Treatment, dated February 9, 2011. In
56 | P a g e

57. accordance with the provisions of the said Circular, the Bank has
charged an amount of Rs.731.96.Crores (representing two-fifth of
Rs.1829.90 Crores) upto March 31, 2012. The unrecognised balance
amount of Rs.1097.94 Crores shall be accounted for and charged off
over the balance period stipulated in the said circular. This amount does
not include any employees relating to separated/ retired employees.
B- 1.4 Provident Fund
The Bank is statutorily required to maintain a provident fund as a part of
its retirement benefits to its employees who joined Bank’s service on or
before 31.03.2010. This fund is administered by a Bank managed trust.
Each employee contributes 10% of their basic salary and eligible
allowances and the Bank contributes an equal amount to the fund. The
investment of the fund is made according to investment pattern
prescribed by the Government of India.
B- 1.5 LEAVE ENCASHMENT
An employee is entitled to encash privilege leave standing to his/her
credit subject to a maximum of 240 days on the date of
superannuation/Voluntary Retirement/death.
However, on resignation, an employee is entitled to get encashment to
the tune of 50% of the privilege leave standing to the credit subject to a
maximum of 120 days.
B- 1.6 ADDITIONAL RETIREMENT BENEFIT
The scheme for additional retirement benefit provides that an officer on
his Retirement/ Voluntary retirement/ Death shall be eligible for
additional retirement benefit, provided he had completed-25-years of
service in Bank.
In the same manner, award staff member on Retirement/ Voluntary
Retirement/ Death shall be eligible for additional retirement benefit,
provided he had completed – 30-years of service in Bank.
However, in case of dismissal, discharge, termination, compulsory
57 | P a g e

58. retirement and resignation additional retirement benefit shall not be
payable, irrespective of any number of years of service
B- 1.7 Disclosures
Principal Actuarial Assumptions [Expressed as Weighted
Averages]
(Rs. in Crores)
TYPE OF PLAN
PENSION
LEAVE
GRATUITY ARB
ENCASHMENT
Discount rate
8.75%
8.50%
8.50% 8.50%
Salary Escalation
Rate
4.00%
4.00%
4.00% 4.00%
Attrition Rate
2.00%
2.00%
2.00% 2.00%
Expected Rate of
Return on plan Assets
8.00%
-
8.00%
-
Reconciliation of opening and closing balance of liability
(Rs. in Crores)
TYPE OF PLAN
PENSION
a) PVO as at
01.04.2011
LEAVE
GRATUITY ARB
ENCASHMENT
6654.04
559.91
1327.35 441.52
b) Add- Interest Cost
563.82
48.43
111.95 37.28
c) Add- Current
Service Cost
146.39
33.9
53.96 12.25
d) Less- Benefits Paid
334.44
48.16
128.45 30.47
3.74
-28.07
52.04 -13.96
7033.55
566.01
1416.85 446.62
e) Add- Actuarial
loss/gain(-) on
obligation
f) PVO as at
31.03.2012
58 | P a g e

59. Reconciliation of opening & closing balance of fair value of plan
assets
(Rs. in Crores)
TYPE OF PLAN
PENSION Gratuity
a) Fair Value of plan assets as on 01-04-2011
4388.57
906.86
431.11
101.05
1167.53
420.5
97.58
-
e) Less- Benefits Paid
334.44
128.45
f) Add- Actuarial gain/(-)loss
-10.06
8.88
b) Add- Expected Return on Plan Assets
c) Ad- Contributions
d) Add- transfer from other trust and members
g) Fair Value of Plan Assets as on 31.03.2012
5740.29 1308.84
Amount recognized in the Balance Sheet
(Rs. in Crores)
TYPE OF PLAN
PENSION
LEAVE
GRATUITY ARB
ENCASHMENT
a) PV of obligation
7033.55
566.01
b) Fair value of plan
assets
5740.29
-
c) Difference
1293.26
566.01
d) Unrecognised
transitional liability
1097.94
-
195.32
566.01
e) Liability
Recognised in the BS
1416.85 446.62
1308.84
-
108.01 446.62
-
-
108.01 446.62
Amount recognized in the P & L Account
(Rs. in Crores)
TYPE OF PLAN
PENSION
a) Current Service
146.39
LEAVE
GRATUITY ARB
ENCASHMENT
33.90
53.96 12.25
59 | P a g e

60. Cost
b) Interest Cost
563.82
48.43
-431.11
-
-101.05
-
13.80
-28.07
43.17
13.96
e) Transitional liability
recognised in the year
378.98
39.20
37.60 45.40
Expenses Recognised
in P&L
671.88
93.46
145.63 80.97
c) Expected Return on
Plan Assets
d) Net Actuarial
Loss/gain(-)
111.95 37.28
Expected contribution for next period (2012-13)
(Rs. in Crores)
Particulars
Pension
Expected contribution
Gratuity
401.57
136.01
Investment Pattern
(Rs. in Crores)
Particulars
Pension
Gratuity
Central Government Securities
23.91 %
20.33 %
State Government Securities
20.74 %
21.56 %
Corporate (PSU)
34.69 %
29.41 %
3.05 %
2.12 %
17.61 %
26.58 %
100.00 %
100.00 %
Corporate (Private)
Others
Total
B.2. Segment Reporting (AS-17)
Part A -Business Segments
(Rs. in Crores)
Busin
ess
Treasury
Segm
ent
Corporate /
Wholesale
Banking
Retail
Banking
Other
Banking
Operations
Total
60 | P a g e

61. Curr
Partic Curre Prev Curre Prev
Prev Curre Prev Curre Prev
ent
ulars nt Yr Year nt Yr Year
Year nt Yr Year nt Yr Year
Yr
Reven 7325. 5597 13132 9840. 8488 5983 4150. 3273 33096 24695
ue
07 .84
.6
82 .31
.4
07 .04
.05
.1
Result
887.7 882. 965.8 1702. 2782 1341 2959. 2750 7595. 6676.
2
51
7
31 .37 .07
73 .61
69
5
Unallo
cated
Expen
se
1569. 1026.
89
18
Operat
ing
Profit
6025. 5650.
80
32
Incom
e
taxes
1018. 1408.
84
64
Extraordinar
y
Profit/l
oss
Net
Profit
Other
Inform
ation
-
-
5006. 4241.
96
68
-
-
Segm
10369 8594 14020 11637 6316 5395 13561 9921 44268 35549
ent
4.34 8.22 7.90 5.42 1.52 4.06 8.27 8.99 2.03 6.69
Assets
Unallo
cated
Assets
4639. 2900.
44
49
Total
Assets
44732 35839
1.47 7.18
61 | P a g e

62. Segm
ent
97324 8090 13159 10954 5928 5078 12728 9339 41549 33462
Liabiliti
.89 1.71 5.59 2.36 1.81 6.11 7.87 3.28 0.16 3.46
es
Unallo
cated
Liabiliti
es
4354. 2730.
46
18
Total
Liabiliti
es
41984 33735
4.62 3.64
Capital
6369. 5046 8612. 6833. 3879 3167 8330. 5825 27191 20873
emplo
46 .51
31
07 .71 .95
39 .71
.87
.24
yed
Unallo
cated
284.9
170.3
8
Total
Capital
27476 21043
.85
.54
Part B - Geographic Segments
(Rs. in Crores)
Segment
s
Domestic
Particula Current
rs
Yr
Prev. Yr
International
Current
Yr
Revenue 29,063.31 21,743.87 4,032.74
Assets
Prev.
Yr
Total
Current
Yr
Prev. Yr
2,951.2
33,096.05 24,695.10
3
3,19,459. 2,67,629. 1,27,861. 90,767. 4,47,321. 3,58,397.
76
48
71
70
47
18
Notes on Segment Reporting :
1. As per guidelines of RBI on compliance with Accounting Standards
AS-17, The Bank has adopted “Treasury Operations”, Wholesale, Retail
and “Other Banking Operations” as Primary business segments and
62 | P a g e

63. “Domestic” and “International” as secondary / geographic segments for
the purpose of compliance with AS-17 on segment Reporting issued by
ICAI.
2. Segment revenue represents revenue from external customers.
3. In determining the segment results, the funds transfer price
mechanism followed by the bank has been used.
4. Capital employed for each segment has been allocated proportionate
to the assets of the segment.
5. Results, Revenue and Capital Employed of International operations
is included in other banking operations.
B-3. Related Party disclosures (AS - 18)
Names of the Related Parties and their relationship with the Bank:
(a) Subsidiaries
i. BOB Capital Markets Limited
ii. BOB Cards Limited
iii. The Nainital Bank Limited
iv. Bank of Baroda (Botswana) Limited
v. Bank of Baroda (Kenya) Limited
vi. Bank of Baroda (Uganda) Limited
vii. Bank of Baroda (Guyana) Inc.
viii. Bank of Baroda (UK) Limited
ix. Bank of Baroda (Tanzania) Limited
x. Baroda Capital Markets (Uganda) Limited. (Subsidiary of Bank of
Baroda Uganda Ltd.)
xi. BOB Trinidad & Tobago Ltd
xii. Bank of Baroda (Ghana) Ltd.
xiii. Bank of Baroda (New Zealand) Ltd.
(b) Associates
i. Baroda Uttar Pradesh Gramin Bank
ii. Nainital-Almora Kshetriya Gramin Bank
63 | P a g e

64. iii.
iv.
v.
vi.
vii.
Baroda Rajasthan Gramin Bank
Baroda Gujarat Gramin Bank
Jhabua-Dhar Kshetriya Gramin Bank
Baroda Pioneer Asset Management Co. Ltd.
Indo Zambia Bank Limited
(c) Joint Ventures
i. India First Life Insurance Company Ltd.
ii. India International Bank (Malaysia) Bhd.
(D) Key Management Personnel:
S.No
Name
Designation
Remuneration
Current Previous
Year
Year
1
Shri M.D.Mallya
Chairman & Managing
Director
25,37,459 21,87,200
2
Shri Rajiv Kumar
Bakshi
Executive Director
21,97,317 18,37,145
3
Shri N.S.Srinath
Executive Director
21,22,495 13,57,347
* Amount includes arrears on account of VI pay commission and
incentives.
The transactions with the Subsidiaries and Associate Banks have not
been disclosed in view of para 9 of the (AS) – 18 Related Parties
Disclosure, which exempts state controlled enterprises from making any
disclosure pertaining to their transactions with other related parties
which are also state controlled.
B-4. Earning Per Share (AS-20)
Particulars
Net profit after tax (Rs. In Crores)
Number of Shares (weighted)
Basic & Diluted earning per share
Current Year
Previous Year
5006.96
4241.68
39,16,53,059
36,44,90,716
127.84
116.37
64 | P a g e

65. Nominal value per share
Rs. 10.00
Rs. 10.00
B-5. Accounting for Taxes on Income (AS-22)
The Bank has complied with the requirements of AS 22 on Accounting
for Taxes on Income issued by ICAI and accordingly deferred tax assets
and liabilities are recognized. The net balance of deferred tax liabilities
as on 31st March 2012 amounting to Rs.255.97 Crores consists of the
following:
(Rs. in Crores)
31.03.2012
31.03.2011
Asset Liability Asset Liability
Difference between book depreciation
and Depreciation under Income Tax
Act on fixed assets
-
89.93
-
52.29
Deduction under section 36 (1) (viii) of
the Income-Tax Act, 1961
-
-
-
-
Depreciation on HTM Securities
- 426.45
Amount disallowed U/S 40 (a) (ia) of
the IT Act
9.84
Provision for leave encashment
174.43
Provision for doubtful debts and
advances (foreign)
76.14
Total:
-
- 216.56
9.70
-
- 158.86
-
-
-
-
260.41 516.38 168.56 268.85
Net Deferred Tax Liabilitiy
255.97
- 100.29
B-6. Discontinuing operations (AS 24)
During the financial year 2011-12 the bank has not discontinued the
operations of any of its branches, which resulted in shedding of liability
and realization of the assets and no decision has been finalized to
discontinue an operation in its entirety, which will have the above effect.
B-7. Impairment of Assets (AS-28)
65 | P a g e

66. In view of the absence of indication of material impairment within the
meaning of clause 5 to clause 13 of AS 28 Impairment of Assets, no
impairment of fixed assets is required in respect of current financial
year.
B-8. Provisions, Contingent Liabilities and Contingent Assets (AS29)
B-8.1 Movement of provisions for Liabilities (excluding provisions
for others)
(Rs. in Crores)
Particulars
Legal Cases / contingencies
Current Year
Previous Year
Balance as on 1st April 2011
8.70
4.75
Provided during the year
1.31
3.95
10.01
8.70
Balance as on 31st March 2012
Timing of outflow / uncertainties
Outflow on settlement/crystallization
The Bank has provided for claims against the bank which have not been
acknowledge as debt as per the policy framed by it.
B-8.2 Contingent Liabilities
Such liabilities as mentioned at Serial No (I) to (VI) of Schedule 12 of
Balance Sheet are dependent upon, the outcome of court, arbitration,
out of court settlement, disposal of appeals, the amount being called up,
terms of contractual obligations, development and raising of demand by
concerned parties respectively. No reimbursement is expected in such
cases.
C. Other Notes to Accounts
C-1. Balancing of Books and Reconciliation
Initial matching of debit and credit outstanding entries in various heads
of accounts included in Inter office Adjustments has been completed
upto 31.03.2012, the reconciliation of which is in progress.
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67. C-2. Capital
During the year, the Bank has allotted 1,95,77,304 equity shares of Rs.
10/- each at a premium of Rs. 830.10 per share to Life Insurance
Corporation of India as determined by the Board in accordance with
regulation 76 (1) of SEBI Issue of Capital and Disclosures Requirements
Regulation on preferential basis. The total amount of capital received by
the Bank on this account is Rs.1644.69 Crores.
C-3. Capital Reserves
Capital Reserve includes appreciation arising on revaluation of
immovable properties and amount subscribed by Government of India
under the World Bank’s Scheme for Export Development Projects for
small / medium scale industries.
C-4. Investments
C-4.1 In terms of RBI Guidelines, during the year, the bank has
transferred a portion of Government Securities (SLR) kept in “Available
for Sale” category to “Held to Maturity” category. The resultant
depreciation of Rs.49.01 Crores (previous year Rs.75.80 Crores) has
been charged to the Profit & Loss Account.
C-4.2 Profit on sale of investments held under “Held to maturity”
category amounting to Rs. 44.20 Crores has been taken to the Profit
and Loss Account and thereafter an amount of Rs. 22.40 Crores has
been appropriated to the Capital Reserve, net of taxes and amount
transferred to Statutory Reserve under section 17 of the Banking
Regulation Act, 1949.
C-5 Provision for Taxes
C-5.1 Provision for Taxes has been arrived at after due consideration of
decisions of the appellate authorities and advice of counsels.
C-5.2 Tax paid in advance /tax deducted at source appearing under
“Other Assets” amounting to Rs.1993.11 Crores (previous year
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68. Rs.1316.28 Crores) represents amounts adjusted by the department /
paid by the Bank in respect of disputed tax demands for various
assessment years. No provision is considered necessary in respect of
the said demands, as in the bank’s view, duly supported by counsels
opinion and / or judicial pronouncements, additions / disallowances
made by the Assessing Officer are not sustainable.
C-5.3 The Bank has claimed deduction under section 36(1) (viii) of the
Income-tax Act,1961 in respect of the eligible business as specified in
the said section and has accordingly transferred a sum of Rs. 533.85
Crores to the corresponding Special Reserve account and reported
under Other Reserve.
C-6. Premises
C-6.1 Execution of conveyance deeds is pending in respect of certain
properties at Rs. 78.37 Crores (Previous Year Rs.88.63 Crores) –
(Original Cost).
C-6.2 Certain properties of the Bank are stated at revalued amounts.
The gross amount of the revaluation included in premises as at the year
Rs.1777.43 Crores (including Rs.30.55 Crores at overseas offices) and
net of depreciation the revaluation amounts to Rs.1173.68 Crores
(Previous Year Rs.1242.49 Crores).
C-6.3 Premises include assets under construction/acquisition amounting
to Rs. 51.87 Crores (Previous Year Rs. 43.77 Crores).
C-7. BOB Fiscal Services Limited (BOBFSL), erstwhile wholly
owned subsidiary of Bank of Baroda, had passed a special
resolution for voluntary winding up of the company on 24.09.1990
and the liquidator was appointed for the same.
BOBFSL entered into an agreement with Bank of Baroda pursuant to
which entire assets and liabilities of BOBFSL were transferred to BOB
as a going concern / as sale in liquidation of the entire business w.e.f.
28.2.1991. As the company could not be liquidated due to pending legal
cases; a decision to merge BOBFSL with Bank of Baroda was taken in
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69. the Annual General Meeting of BOBFSL held on 30th March 2007.
The Bank has approved the merger of BOBFSL with Bank of Baroda in
its Board meeting on 28.01.2009 and authorized Bank to file necessary
petition for merger of BOBFSL with BOB before the High Court.
C-8. The Bank has taken over specified Assets & Liabilities of The
Memon Co-operative Bank Ltd on 18th April, 2011 as per approval
granted by RBI vide letter no. UBD.CO.MEROER No.
7814/09.16.901/2010.11 dated 04th March, 2011. Out of the deficit of
Rs.149.25 Crores on account of the said take over, the Bank has
proportionately charged Rs. 49.75 Crores of the said deficit to the Profit
and Loss Account during the year ended March 31, 2012. The balance
amount of Rs.99.50 Crores will be charged proportionately during the
remaining period till Financial Year 2013-14, as approved by RBI vide
letter no. DBOD.No.BP.1311/21.04.048/2010-11 dated 25th July, 2011.
C-9. The Bank has made provision @ 20% on the Secured Substandard Advance as against the Regulatory requirement of 15%.
Further the Bank has made an additional ad-hoc provision of Rs.
342.79. Crores for the year ended March 31, 2012 (previous year Rs.
320.08 Crores) in certain non performing domestic advance accounts.
C-10. The Board of Directors has proposed dividend of Rs.17/- per
share (on face value of Rs.10/-) which is subject to compliance of
Section 15 of Banking Regulation Act, 1949 and consequential
notification to be issued to this effect by the Government of India under
Section 53 of Banking Regulation Act, 1949 and approval of the
shareholders.
C-11. Previous Year figures have been regrouped/ rearranged wherever
considered necessary to conform current year presentation.
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70. BIBLIOGRAPHY
WWW.GOOGLE.COM
WWW.SCRIB.COM
www.bankofbaroda.co.in
SHREERAJ HARIHARAN
ROLL NO 36
M.COM PART- I
SEMESTER- I
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