MIRA INFORM REPORT

Report Date :

16.05.2007

IDENTIFICATION DETAILS

Name :	BANK OF BARODA
Registered Office :	Bank of Baroda Building, Mandvi, Vadodara – 390 006, Gujarat, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	1908
Legal Form :	Subject is a Government of India bank. The bank’s shares are traded on the Stock Exchanges.
Line of Business :	Banking Activities

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed bank having fine track. The bank is progressing well. Directors are reported as experience of and respectable business. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The bank can be considered normal for business dealings at usual trade terms and conditions. The bank can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office :	Bank of Baroda Building, Mandvi, Vadodara – 390 006, Gujarat, India
Tel. No.:	91-265-2330274 /2563932
Fax No.:	91-265-2330824 / 2562445
E-Mail :	info@bankofbaroda.com
Website :	http://www.bankofbaroda.com
Head Office :	Suraj Plaza -1, Sayaji Ganj, Baroda - 390005
Tel. No.:	91-0265-2361852 (10 Lines)
Fax No.:	91-0265-2362395 / 2361824/ 2361806
Corporate Office :	C-26, G-Block, Badra Kurla, Bandra, Mumbai-400051 India
Tel. No.:	91-22-66985000 / 04
Fax No.:	91-22-26523500
Central Office :	3, Walchand Hirachand Marg, Ballard Pier, Mumbai – 400 001, Maharashtra
Branches :	The bank has 2715 domestic branches and 39 foreign branches in all major cities in India and Overseas.

DIRECTORS

Name :	Mr. P. S. Shenoy
Designation :	Chairman & Managing Director
Name :	Mr. G. K. Sharma
Designation :	Director
Name :	Mr. G. S. Uberai
Designation :	Director
Name :	Mr. Amritlal Sanghvi
Designation :	Director
Name :	Mr. Vinod Rai
Designation :	Director
Name :	Mr. N.G. Mhatre
Designation :	Director
Name :	Mr. Prem P. Pareek
Designation :	Director
Name :	Mr. C. Chakraborty
Designation :	General Manager
Name :	Dr Anil K Khandelwal
Designation :	Managing Director
Name :	Shri A.C. Mahajan
Designation :	Executive Director
Address :	Bank of Baroda, C-26, G Block, Bandra Kurla , bandra (E), mumbai – 400 051
Date of Birth/Age :	05.07.1950 / 56 Years
Qualification :	M.Sc (Hons) CABII – part I
Experience :	34 Years
Name :	Shri T.K. Balasubramanian
Designation :	Senior Manager
Address :	T. Nagar Branch, Bank of Baroda, 15- Gopalkrishnan Street, T. NAgar, Chennai – 600017
Date of Birth/Age :	11.06.1947 / 59 Years
Qualification :	M. Com., CAIIB-1
Experience :	36 Years
Name :	Mr. V. J. Sanmthanam
Designation :	General Manager
Name :	Mr. B. Samant
Designation :	General Manager
Name :	Mr. R. K. Garg
Designation :	General Manager
Name :	Mr. B. A. Prabhakar
Designation :	General Manager
Name :	Mr. A. D. Parulkar
Designation :	General Manager
Name :	Mr. V. B. L. Saksena
Designation :	General Manager
Name :	Mr. M. L. Rathi
Designation :	General Manager
Name :	Mr. B. D. Joshi
Designation :	General Manager
Name :	Mr. C. H. Palan
Designation :	General Manager
Name :	MR. S. Vaidyanathan
Designation :	General Manager
Name :	Mr. Amitav Sanyal
Designation :	General Manager
Name :	Mr. D. A. Parekh
Designation :	General Manager
Name :	Mr. A. C. Suri
Designation :	General Manager
Name :	Mr. Muneer Khan
Designation :	General Manager
Name :	Mr. D.Rajagopalan
Designation :	General Manager
Name :	Mr. R. K. Bansal
Designation :	General Manager
Name :	Mr. V. K. Sharma
Designation :	General Manager
Name :	Mr. D. D. Maheshwari
Designation :	General Manager
Name :	Mr. K. N. Suvarna
Designation :	General Manager
Name :	Mr. A. S. Khurana
Designation :	General Manager
Name :	Mr. M. S. Malhotra
Designation :	General Manager
Name :	Mr. K. K. Agarwal
Designation :	General Manager
Name :	Dr. K. C. Chakrabarty
Designation :	General Manager
Name :	Mr. R. Krishnamurthy
Designation :	General Manager
Name :	Mr. V. Chandrasekhar
Designation :	General Manager
Name :	Mr. B. G. Baria
Designation :	General Manager
Name :	Mr. J. K. Chander
Designation :	General Manager
Name :	Mr. T. K. Krishnan
Designation :	General Manager
Name :	Mr. B. P. Chakraborty
Designation :	General Manager
Name :	Mr. T. V. Lakshminarayanan
Designation :	General Manager
Name :	Dr. S. C. Mehta
Designation :	General Manager
Name :	Mr. R. P. Bansal
Designation :	General Manager
Name :	Mr. M. T. UDeshi
Designation :	General Manager
Name :	Mr. S. S. Kelkar
Designation :	General Manager
Name :	Mr. M. M. Gadgil
Designation :	General Manager
Name :	Mr. D. K. Govil
Designation :	General Manager
Name :	Mr. Manubhai Parekh
Designation :	General Manager
Name :	Mr. N. L. Khurana
Designation :	General Manager
Name :	Mr. S. P. Agarwal
Designation :	General Manager
Name :	Mr. R. K. Bhalla
Designation :	General Manager
Name :	Mr. S. K. Bansal
Designation :	General Manager
Name :	Mr. V. S. Hegde
Designation :	General Manager
Name :	Mr. G. G. Joshi
Designation :	General Manager
Name :	Mr. P. S. Joshi
Designation :	General Manager
Name :	Mr. M. P. Ranade
Designation :	General Manager
Name :	Mr. N. K. Kapoor
Designation :	General Manager
Name :	Mr. Asit Pal
Designation :	General Manager
Name :	Mr. A. R. Sugumaran
Designation :	General Manager
Name :	Mr. S. P. Garg
Designation :	General Manager
Name :	Mr. Cyril Patro
Designation :	General Manager
Name :	Mr. Prakash Jain
Designation :	General Manager
Name :	Mr. R. K. Velu
Designation :	General Manager
Name :	Mr. P. V. Desai
Designation :	General Manager
Name :	Mr. N. R. Badrinarayan
Designation :	General Manager
Name :	Mr. B. Krishna Kumar
Designation :	General Manager
Name :	Mr. P. L. Kagalwala
Designation :	General Manager
Name :	Mr. D. Sarkar
Designation :	General Manager
Name :	Mr. S. C. Kalia
Designation :	General Manager
Name :	Mr. V. K. Vig
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Central Government	196000000	53.81%
Mutual Funds / UTI	35826103	9.83%
Financial Institutions / Banks	1518928	0.42%
Insurance Companies	16224397	4.45%
Foreign Institutional Investors	73314201	20.13%
Bodies Corporate	7790121	2.145
Individual Shareholders holding nominal share capital upto Rs.0.100 millions	29286748	8.04%
Individual Shareholders holding nominal share capital in excess Rs.0.100 millions	768728	0.21%
Non Resident Indians	2595251	0.71%
Overseas Corporate Bodies	26200	0.000%
Trusts	331100	0.10%
Clearing Members	584223	0.16%
Total	364266000	100 %

BUSINESS DETAILS

Line of Business :

Banking Activities

GENERAL INFORMATION

No. of Employees :	38774
Bankers :	Ø State Bank of India, Madame Cama Road, Mumbai - 400 021 Ø Reserve Bank of India
Facilities :	---

Banking Relations :	Good
Auditors :
Name :	Ø B. C. Jain & Company Chartered Accountants Ø K. C. Khanna & Company Chartered Accountants Ø R. K. Khanna & Company Chartered Accountants Ø S. S. Kothari & Associates Chartered Accountants Ø Shah Gupta & Company Chartered Accountants Ø Kalyanwalla and Mistry Chartered Accoutants
Associates :	q Indo Zambia Bank Limited, Zambia q Raebareli Kshetriya Gramin Bank q Sultanpur Kshetriya Gramin Bank q Allahabad Kshetriya Gramin Bank q Kanpur Kshetriya Gramin Bank q Pratapgarh Kshetriya Gramin Bank q Fatehpur Kshetriya Gramin Bank q Faizabad Kshetriya Gramin Bank q Bareilly Kshetriya Gramin Bank q Shahjahanpur Kshetriya Gramin Bank q Nainital Almora Kshetriya Gramin Bank q Marudhar Kshetriya Gramin Bank q Aravali Kshetriya Graming Bank q Bundi Chittorgarh Kshetriya Gramin Bank q Bhilwara Ajmer Kshetriya Gramin Bank q Dungarpur Banswara Kshetriya Gramin Bank
Subsidiaries :	in india q Nainital Bank Limited q BOB Housing Finance Limited q BOB Asset Management Company Limited q BOB Capital Markets Limited q BOB Cards Limited overseas q Bank of Baroda (Kenya) Limited q Bank of (Uganda) Limited q BOB International Finance Limited, Hong Kong q Bank of Baroda (Guyana) Inc. q Bank of Baroda (Botswana) Limited q BOB (UK) Limited q

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000000	Equity Share	Rs.10/-	RS.15000.000 Millions

Issued, Subscribed

No. of Shares	Type	Value	Amount
367000000	Equity Share	Rs.10/-	RS.3670.000 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
364265500	Equity Share	Rs.10/-	Rs.3642.655 Millions
12619	Forfeited Shares	Rs, 10/-	Rs.0.126

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Capital	3655.300	2945.300	2945.300
Reserves and Surplus	74789.100	53332.300	48364.000
Deposits	936619.900	813334.600	729673.200
Borrowings	48022.000	16408.300	8751.100
Other Liabilities	70839.000	60621.800	61353.100
Total	1133925.300	946642.300	851086.700
Cash & Balance with RBI	33334.300	27123.200	30567.900
Balances with Banks & Money at Call & Short Notice	101212.100	65418.800	42100.300
Investments	3511142.200	370744.400	380188.100
Advances	599117.800	434003.800	356008.800
Fixed Assets	9207.300	8608.000	8152.700
Other Assets	39911.600	40744.100	34068.900
Total	1133925.300	94664.300	851086.700

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Interest Earned	71000.000	64314.200	61470.700
Other Income	12903.300	13443.900	19272.100
Total Income	83903.300	77758.100	80742.800
Interest Expended	38750.900	34521.500	35754.800
Operating Expenses	24828.600	20108.100	18053.100
Provisions & Contingencies	12054.200	163600.100	17264.900
Total	75633.700	70989.700	71072.800
Net profit for the Year	8269.600	6768.400	9670.000

SUMMARISED RESULTS

PARTICULARS	31.03.2007 Full Year
Sales Turnover	92126.400
Other Income	11732.400
Total Income	103858.800
Total Expenditure	33050.600
Operating Profit	70808.200
Interest	54265.600
Gross Profit	16542.600
Depreciation	0.000
Tax	6277.900
Reported PAT	10264.700
Dividend (%)	0.000

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Credit Deposit Ratio	59.04	51.20	50.89
Investment Deposit Ratio	41.25	48.67	48.92
Cash Deposit Ratio	3.45	3.74	4.68
Interest Expended / Interest Earned	54.58	53.68	58.17
Other Income / Total Income	15.38	17.29	23.87
Operating Expense / Total Income	29.59	25.86	22.36
Interest Income / Total Funds	6.83	7.16	7.61
Interest Expended / Total Funds	3.73	3.84	4.43
Net Interest Income / Total Funds	3.10	3.31	3.18
Non Interest Income / Total Funds	1.24	1.50	2.39
Operating Expense / Total Income	2.39	2.24	2.24
Profit Before Provision / Total Funds	1.95	2.57	3.33
Net Profit / Total Funds	0.79	0.75	1.20
Return On Net Worth (%)	12.28	12.58	20.32

STOCK PRICES

Face Value	Rs.10/-
High	Rs.276.80
Low	Rs.274.05

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The Bank was established in the year 1908 at Vadodara in Gujarat as a Commercial Bank.

Subject was set up by Maharaja Sayajirao Gaekwad III. It opened its first branch in 1910 at Ahmedabad. In 1958, the bank took over Hind Bank Limited. Three years later the New Citizen Bank of India was merged with Bank. In 1963, it took over Surat Banking Corporation and in 1964 two more banks were merged with the Bank. In 1975, the bank acquired majority shareholding and management control of Bareilly Corporation Bank and Nainital Bank, two banks having strategic importance in Uttar Pradesh. Trader bank was merged with the bank in 1988 which widened its branch network in Delhi.

Subject was nationalised in the year 1969.

Subject successfully withstood the storm of World War I and emerged stronger. The bank also survived the Great Depression of the thirties.

The Reserve Bank of India was formed in 1935 and the bank was included in the Second Schedule by virtue of its financial strength. By the end of the World War II the bank had established sound banking relationships with institutions in several countries including Australia, Japan, Germany, Italy, UK and US. The bank opened its first overseas branch in Mombassa in 1953. The Bank opened its London branch in 1957. The Bank also earned the distinction of being the first Indian Bank to establish itself in Latin America, with the opening of George Town Branch.

The bank is recognised as one of the largest providers of credit to domestic industries with a well-diversified credit portfolio.

The bank is recognised as one of the largest providers of Credit to domestic industries with a well-diversified credit portfolio. It has also been at the forefront of providing trade related products such as export credit to Indian exporters. It provides lending, banking, financing rehabilitation, treasury and investment management services to consumers and to industries. It covers almost every state in the country, with almost 70% of the branches located in rural and semi urban area. It was the first to venture overseas.

Subject entered the capital market with its maiden public offer of 100 millions equity share of Rs. 10/- each at a premium of Rs. 75 per share aggregating to Rs. 8500 millions in end 1996. The offer is being made to augement the net worth of the bank in the process take care of future capital adequacy requirements.

Bank has taken various intitatives in information technology. It has launched OmniBoB providing banking services through Phone and over PC. The OmniBoB suite includes Any Bob (Any Branch Banking), Dial Bob (Centralised telebanking service) and Connect BoB (PC Banking Service). Bank plans to march ahead in the E-millennium with renewed focus on the triad of “Technology, People and Customer”. Its thrust for the future will be insurance, E-broking and Retail Banking.

Further with a view to improve the operational efficiency, the bank has appointed Gartner Group as Consultants who will be looking into the Bank’s business as well as its IT strategy. International Debit Card project was launched in 2002-03, in affiliation with VISA. The project envisages installation of 500 ATMs in the next financial year. Effective from 19^th June 2002 the Benaras State Bank was integrated with the Banks. As of March, 2004 the Bank has a netork of 2692 domestic branches and 38 overseas branches.

Directors Report

FINANCIAL HIGHLIGHTS

 * Total Business (Deposit + Advances) increased from Rs.1247.340 millions Rs.1535.740 millions Growth by 23.12%. 

 * Gross Profit and Net Profit were Rs.2,0318.500 millions and Rs.8269.600 millions respectively. Net Profit registered a growth of 22.18% over previous year.Credit-Deposit Ratio stood at 67.15% against 55.82%. 

 * Retail Credit posted a robust growth of 53.21% - constituting 18.92% of Total Domestic Credit against 16.96% last year. 

 * Net Interest Margin (NIM) was at a healthy level of 3.31%. 

 * Net NPAs to Net Advances declined from 1.45% last year to 0.87%. 

 * Capital Adequacy Ratio (CAR) improved from 12.61 % to 13.65%. 

 * Net Worth improved from Rs.5,3910.000 millions to Rs. 7,6197.300 millions a rise of 41.34%. 

 * Book Value improved from Rs.0.183 to Rs.0. 209 millions

 * Business Per Employee moved up from Rs.31.600 millions last year to Rs.39.600 millions

OTHER PRUDENTIAL MEASURES: 

As a prudent measure, your Bank has made provision towards contribution to gratuity (Rs.1172.500 millions), pension funds (Rs.2132.100 millions), leave encashment (Rs.205.300millions ) and additional retirement benefits (Rs.380.100 millions) on actuarial basis. Total provisions under these four categories amounted to Rs.3890.000 millions during the year, against Rs.3230.700 millions provided for during FY05. Total corpus available with the Bank at end March 2006 under these heads is: Rs.5422.500 millions (gratuity), Rs.12632.100 millions (pension funds), Rs.1755.300 millions (leave encashment), and Rs.1150.100 millions (additional retirement benefits). 

 INDIAN ECONOMIC LANDSCAPE: 

Indian economy has been on a high growth trajectory in the recent years. GDP growth in 2005-06 is expected to be at 8.1%. Indian industry has witnessed a record growth rate of 9.4%. Agricultural sector has bounced back with a growth rate of 2.3%. Investment climate is full of confidence. India today is one of the most attractive investment destinations in Asia.

Stock market has been booming with sensex hovering over 10K mark. Inflation is contained at 4-5%. Interest rates have by and large remained stable especially, when viewed against pressures on liquidity. India's exports in 2005-06 have crossed US$ 100 billion and Imports US$ 140 billion. Foreign Direct Investment has crossed US$ 7 billion during 2005-06 with expectation that it will touch US$ 10 billion in 2006-07. Foreign Portfolio investment inflows have crossed US$ 10 billion mark during 2005 and are expected to touch US$ 15 billion in 2006. Foreign exchange kitty has been bulging it now stands at over US$ 160 billion. All these are demonstrative of buoyancy in the economy.

India is emerging as an Economic & Knowledge Superpower. In less than a decade, India has emerged as the Electronic Back Office of the world. India is also emerging as Gem & Jewellery hub. 

Government has raised the GDP growth rate bar to 10% for future years. In tune with this confidence, India is expected to be at the 4th place globally by 2020, with double digit growth. India's Vision is to be part of the league of developed economies by 2020.

Strong macro economic fundamentals have helped in creating a good investment climate. Indian banking sector can thus feel confident of a conducive growth environment during 2006-07. 

 Business Confidence Index of National Council of Applied Economic Research a barometer measuring the confidence factor of business leaders - reached the level of 151.4 by end December, 2005 the highest level since November, 1994. 

 Going forward, we expect the same momentum to continue in the industrial and services sectors given the aggressive build up of productive capacities, congenial policy environment and rising personal income levels and business optimism The banking and capital market institutions are fully geared up to face the challenge of meeting the financial needs of lndia's corporate sector.

However, as the Reserve Bank of India has warned through its Annual Monetary Policy 2006-07, our economy needs to prepare itself in FY07 for higher orders of pass-through into consumer prices, in respect of the overhang as well as the possibility of additional increases in crude prices in the future. Higher levels of international crude prices continue to pose a risk to economic growth and inflation for global economy in general and Indian economy in particular.

INDIAN BANKING SCENARIO:

Expansionary phase of Indian economy triggered by globalization and encouraging investment climate has brought in its wake unprecedented expansion in bank credit. However, in tandem with such surge in credit growth, banks have been experiencing pressures on their resources. Signs of steep hardening in market-determined interest rates are visible. Some banks have already raised their PLR and interest rates on retaIL loans particularly housing loans. Reckoning the difficulties faced by the banks, tax concessions on banks' time deposits for 5 years and above tenure have been announced in the recent Union Budget.

To meet the future competitive challenges against the backdrop of road-map of banking industry beyond 2009, when they would be fully exposed to competition, banks are bracing themselves to be ready through adoption of newer technology, strengthening their capital base to become Basel-II compliant, reducing their NPAs, bringing down operating costs, undertaking organizational restructuring and sharpening their customer-centric initiatives. Emergence of a few large Indian banks through Merger and Acquisition route to effectively compete with large global bank, may not be far off, when viewed against such preparedness and positive signs from regulators. 

In the face of globalization for meeting various risks, banks are setting up robust enterprise-wide integrated risk management systems with high emphasis on developing risk-management skills across the organization. Sensitizing the operating units of banks towards the integrated approach to risk management tools has, therefore, become essential. Thus, not with standing intense competition, the expansionary phase of the economy is expected to provide ample opportunities for the growth of banking industry.

Indian banking system is increasing, l becoming competitive and is getting integrated with global banking. Banks are in a war game to acquire customers. Service delivery standards are being benchmarked to global standards. Technology and marketing are becoming the key differentiators. 

Implementation of Basel-II norms is posing new challenges. Impaired assets are continuing to be a major area of concern. Banks are under increasing pressure to improve their profitability to meet the high operating costs and to shore up the capital.

Growth of Non-food credit of commercial banks was at an unprecedented level of 30.8% over the previous year. Despite the RBI's inflation-targeting approach, lending rates have not witnessed any sharp spikes to upset the economic momentum. Moreover, demand for bank credit has been broad-based led by agriculture, industry and personal loans (housing, credit cards, education sectors). 

Banks have financed the sustained credit demand through liquidation of Government and Non-SLR securities, raising of capital through equity issuances, higher internal resources and deposit mobilization - deposit growth during the year posting a satisfactory level of 20.50%. 

All in all, Competition, Consolidation & Convergence are becoming the main drivers of Indian banking. 

GLOBAL ECONOMY AND THE INDIAN FINANCIAL SECTOR: 

The management of Indian financial sector is slanted towards gradual rebalancing of efficiency and stability and the changing shares of public and private ownership. 

The country has been adhering to a cautious and calibrated approach in its financial sector reforms and has adopted a 'Roadmap Approach'. 

 As per the roadmap drawn by Reserve Bank of India, foreign banks in India would be at par and will have level playing field with Indian banks by 2009. 

Globalization of Indian economy is producing a new class of Indian multinationals, which are on a spree to acquire companies abroad. Opportunities for funding such acquisitions are on the increase. 

A NEW DAWN FOR BANK OF BARODA 'THE BARODA SUN': 

With changing times and in tune with the changing customer aspirations across the globe, your Bank is also changing. It has set in motion a series of steps to transform itself into a modern, technology-enabled customer-centric, world-class banking organization, meeting best global practices and standards in banking and in service delivery. Major innovations and initiatives in the arena of technology, banking products and processes, service delivery channels and human resources have been set in motion, with a view to providing world class banking experience to the Bank's customers across the globe.

In tandem with these initiatives and with a view to project a more modern and contemporary personality befitting the 21st century and reflecting the modern customers' aspirations, the Bank pioneered a major re-branding exercise, in the PSB segment. The 6th of June, 2005 was a new dawn for your Bank in many ways. This was the day the Bank launched its new brand identity 'THE BARODA SUN'. 

 The sun is the single most powerful source of light and energy Its far reaching rays dispel darkness to illuminate everything they touch. At Bank of Baroda, we seek to be the source that will help all our stakeholders realize their goals. To our customers, we seek to be one-stop reliable partner who will help them address different financial needs. To our employees, we offer rewarding careers and to our investors and business partners, maximum return on their investment. 

 The logo's new colour reflects the rising sun, radiating its rays across the letter form 'BB'. The 2nd 'B' in the double 'B' letter appears like a bird flying across the morning sky. It is like the Bank flying into a dynamic state - always proactive, striving for change. Its new colour vermillion - a shade of orange - also signifies energy like the sun. 

 With a view to position and project itself differently in the crowded market place - particularly among the public sector banks - the new brand also incorporates the tag line 'India's International Bank'. This tagline truly reflects the Bank's extensive global footprints and over 50 years of overseas experience.

 The Bank implemented the re-branding programme across its over 2,800 locations in 21 countries in a record time of 53 days. The global roll out included external signages, stationery, collaterals, locators, identity cards, mementos and a host of other applications. 

 Our new brand identity is much more than a cosmetic change. It is a signal that we recognize and we are prepared for new business paradigms in a globalised world. At the same time, the Bank will always stay in touch with its heritage and enduring relationships on which the Bank is founded.

Launch of the new logo also symbolized a new promise to create a Bank of the Future and a new Bank for the next 100 years. It further conveys a brand promise- a promise to deliver world-class service

. 

RAHUL DRAVID - BANK'S BRAND AMBASSADOR:

The celebrity connection has been successfully leveraged by organizations world over to build brand positioning and brand recall. Buyers' decision-making process is sought to be influenced by a strategy woven around the concept of 'Mind share leading to Market share'. In tune with these trends, your Bank also launched on the 6th of June 2005 Rahul Dravid an Internationally acclaimed cricketer and the present Captain of the Indian Cricket Team - as the Bank's Brand Ambassador. The Bank has found in Rahul Dravid a perfect brand fit. His legendary and international stature is in sync with the stature of the Bank. Rahul Dravid shares with the Bank common values of honesty, simplicity, dedication and commitment. Just like your Bank, he is dependable, consistent and reliable. He has all through performed well in his field and has successfully weathered many crisis. So has your Bank over the last 98 years. 

MARKETING INITIATIVES - KEY DIFFERENTIATOR FOR CUSTOMER INTIMACY: 

The Bank's Vision envisages transforming the Bank into a marketing-oriented organization, reaching out and acquiring customers and delivering both banking and financial services through various delivery platforms. The new strategy requires the setting of a new Sales Structure within your Bank. This is being progressively put in place. Marketing Managers, Marketing Officers and Sales Officers are deployed in all the Zones and Regions to aggressively drive business growth. These sales teams would work on a full time sales role. They have been re-skilled and re-tooled to become aggressive sales persons and order getters. The strategy even in its nascent stage, has begun to pay off. In a 45-day `Savings Bank Account Opening' Campaign, more than 1.27 million new customers opened Savings Accounts with your Bank. This outbound selling will become the principal plank around which sales - especially retail sales -will grow in your Bank

 The marketing efforts have improved your Bank's ranking in the Economic Times Brand Equity Survey and it is now in the top 20 best service brands of the country. A popular business channel referred your Bank as the leader in the 12-hour banking category. Your Bank was also short-listed for re-branding awards by a Television Channel and a Professional Management Association.

 It is proposed to continue these tasks over the year so as to emerge as `India's International Bank', driven by the customer, enabled by the State of the Art Technology and reposition itself as a dominant retail and sales Bank providing anytime, anywhere service delivery across nearly 2,800 customer touch points in 21 countries. The central objective being pursued in these endeavors is to convert the branches from transaction processing centers into sale and service outlets.

RETAIL BANKING - THE NEW GROWTH ENGINE: 

 Aggressive expansion of retail credit continued to be a major thrust area for your Bank in FY06. In order to achieve this, several major initiatives were taken during the year. These include - Operationalisation of 17 Central Processing Cells for expeditious processing and sanctioning of proposals; setting up of 114 Money Plax outlets - dedicated retail boutiques across the country. Further, Special Campaigns in the form of Bachat Utsav, Current and Traders Loan campaigns, Baroda Housing loan campaigns were launched. These initiatives have paid good dividends. 

 Retail Credit improved from Rs 63830.600 millions as at end March 2005 to Rs.97793.600 millions as at end-March 2006, reflecting a growth of 53.21% during the year. The Retail Credit as percentage of Gross Domestic Advances has increased from 16.96% in March 2005 to 18.92% in March 2006. 'Baroda Housing Loan' and 'Baroda Traders Loan' were the major contributors to the Retail Credit growth during the year. 

 The Bank also introduced five innovative asset products. These are: Baroda Loan for Executive Development, Baroda Vaibhav Lakshmi, Baroda Loan to Doctors, Baroda Desh Videsh Yatra Loan and Baroda Housing Loan to NRIs/ PIOs. The new liability products are: Nagrik Bachat Khata (i.e., No Frill Account) and Savings Bank Accounts with 'Zero' balances for the categories such as Salary Accounts of Employees of various Organisations, Agents of LIC/GIC and their Subsidiaries, Students, Persons getting compensation from Central/State governments for acquisition of land and other properties. 

Bio Data

Bank of Baroda (BOB) was Incorporated in 1908 in the small town of Baroda by the visionary Maharaja, Sir Sayajirao Gaekwad III. Alone with other banks BOB was nationalised in 1969. The first branch of the Bank was opened in the city of Ahmedabad in 1910 while that in the city of Bombay in 1919.

 The bank is recognized as one of the largest providers of credit to domestic industries with a well diversified credit portfolio. It has also been at the forefront of providing trade related products such as export credit to Indian exporters. It provides lending, banking, financing rehabilitation, treasury and investment management services to consumers and to industries. It was the first to venture overseas. 

 BOB entered the capital market with its maiden public offer of 100.000 millions equity shares of Rs 10 each at a premium of Rs 75 per share aggregating to Rs 8500.000 millions in end 1996. The offer is being made to augment the net worth of the bank and in the process take care of future capital adequacy requirements. 

 Banks has taken various initiatives in information technology, it has launched Omni Bob providing banking services through Phone and over PC. The Omni BoB suite inculdes Any BoB (Any Branch Banking), Dial BoB (Centralized telebanking Service) and Connect BoB (PC Banking Service). Bank plans to march ahead in the E-Millennium with renewed focus on the triad of 'Technology, People & Customer'. Its thrust for the future will be on Insurance, E-broking and Retail Banking

 Further with a view to improve the operational efficiency, the bank has appointed Gartner Group as Consultants who will be looking into the bank's business as well as its IT strategy. International Debit Card project was launched in 2002-03, in affiliation with VISA. The project envisages insatllation of 500 ATMs in the next financial year. Effective from 19th June,2002 the Benares State Bank was integrated with the Bank.

 The bank has signed an MOU with National Insurance Company Ltd for selling their non- life insurance products under Corporate Agency Arrangement. The Bank has introduced five retail lending products they are Baroda Home Improvement loan, Baroda festival Loan, Baroda Professional Loan, Baroda Eco-friendly Gas Kit Loan, Loan to individual for subscribing to Public Issues of PSUs/Blue Chips companies, Advances against Future Rent Receivables and Baroda Loan for Executive Development

 In the year 2004-05 the bank has expanded its interconnected ATM network to cross 501, spread over 180 centres in the country. The bank has also introduced 8AM to 8PM banking at 101 branches and 24-Hour banking at 5 branches in the country. Further the company has launched its new logo 'The Baroda Sun' in June 2005. The bank will roll out 125 branches in 2005-06 and over 600 branches in the next year.

 During 2004-05 the bank has merged its 11 branches (1- metro, 3- Urban,3- Semi-urban and 4- rural). Further the Bank has amalgamated South Gujarat Local Area Bank Ltd with itself with effect from 24th June 2004, which is having 7 branches and the bank has opened 12 new branches during the year. The bank has opened 3 new extension counters and 4 extension counters were upgraded. The bank had 2700 branches in India and 38 branches overseas during March 2005.

Web Details Attached :

It has been a long and eventful journey of almost a century across 21 countries. Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial prudence and corporate governance.

It is a story scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of corporate glory. It is a story that needs to be shared with all those millions of people - customers, stakeholders, employees & the public at large - who in ample measure, have contributed to the making of an institution.

Mission statement

To be a top ranking National Bank of International Standards committed to augmenting stake holders' value through concern, care and competence.

It’s new logo is a unique representation of a universal symbol. It comprises dual ‘B’ letterforms that hold the rays of the rising sun. The Bank call this the Baroda Sun.

The sun is an excellent representation of what our bank stands for. It is the single most powerful source of light and energy – its far reaching rays dispel darkness to illuminate everything they touch. At Bank of Baroda, The Bank seek to be the source that will help all our stakeholders realise their goals. To their customers, The Bank seek to be a one-stop, reliable partner who will help them address different financial needs. To their employees, The bank offer rewarding careers and to our investors and business partners, maximum return on their investment.

The single-colour, compelling vermillion palette has been carefully chosen, for its distinctiveness as it stands for hope and energy.

The bank also recognize that their bank is characterized by diversity. It’s network of branches spans geographical and cultural boundaries and rural-urban divides. It’s customers come from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face for their brand because it is a universal symbol of dynamism and optimism – it is meaningful for their many audiences and easily decoded by all.

It’s new corporate brand identity is much more than a cosmetic change. It is a signal that The bank recognize and are prepared for new business paradigms in a globalised world. At the same time, The bank will always stay in touch with their heritage and enduring relationships on which their bank is founded. By adopting a symbol as simple and powerful as the Baroda Sun, The bank hope to communicate both.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.40.60
UK Pound	1	Rs.80.13
Euro	1	Rs.54.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions