The Directors have pleasure in presenting the One Hundred and Third
 Annual Report of the Bank with the audited Balance Sheet, Profit & Loss
 Account and the Report on Business and Operations for the year ended
 March 31, 2011 (FY11).
 
 Performance Highlights
 
 - Total Business (Deposit+Advances) increased to Rs 5,34,116 crore
 reflecting a growth of 28.30%.
 
 - Gross Profit and Net Profit were Rs 6,981.61 crore and Rs 4,241.68
 crore respectively. Net Profit registered a growth of 38.7% over
 previous year.
 
 - Credit-Deposit Ratio stood at 86.77% as against 84.47% last year.
 
 - Retail Credit posted a growth of 33.8% constituting 18.88% of the
 Banks Gross Domestic Credit in 2010-11.
 
 - Net Interest Margin (NIM) as per cent of interest earning assets in
 global operations was at the level of 3.12% and in domestic operations
 at 3.72%.
 
 - Net NPAs to Net Advances stood at 0.35% this year against 0.34% last
 year.
 
 - Capital Adequacy Ratio (CAR) as per Basel I stood at 13.02% and as
 per Basel II at 14.52%.
 
 - Net Worth improved to Rs 19,750.63 crore registering a rise of
 43.27%.
 
 - Book Value improved from Rs 378.44 to Rs 504.43 on year.
 
 - Business per Employee moved up from Rs 981 lakh to Rs 1,229 lakh on
 year.
 
 Segment-Wise Performance
 
 The Segment Results for the year 2010-11 reveal that the contribution
 of Treasury Operations was Rs 882.51 crore, that of Corporate/Wholesale
 Banking was Rs 1,525.49 crore, that of Retail Banking was Rs 1,517.89
 crore, and of Other Banking Operations was Rs 2750.61 crore. The Bank
 earned a Profit
 
 after Tax (PAT) of Rs 4,241.68 crore after deducting Rs 1,026.18 crore
 of unallocated expenditure and Rs 1,408.64 crore towards provision for
 tax.
 
 Dividend
 
 The Banks Directors have proposed a dividend of Rs 16.50 per share (on
 the face value of Rs 10/-per share) for the year ended March 31st,
 2011. The total outgo in the form of dividend, including taxes, will be
 Rs 753.35 crore.
 
 Capital Adequacy Ratio (CAR)
 
 The Banks Capital Adequacy Ratio (CAR) is comfortable at 14.52% under
 Basel II as on 31st March 2011. During the year, the Bank strengthened
 its capital-base by raising Rs 1,500 crore through unsecured
 subordinated bonds and Rs 711.50 crore through innovative perpetual
 bonds.
 
 The Banks Net Worth as at 31st March 2011 was Rs 19,750 crore
 comprising paid-up equity capital of Rs 392.81 crore and reserves
 (excluding revaluation reserves) of Rs 19,357.82 crore. An amount of Rs
 3,488.33 crore was transferred to reserves from the profits earned.
 
 Provisions towards Retirement and Other Benefits
 
 During the year 2010-11, the Bank has made provision towards
 contribution to gratuity (Rs 382.90 crore), pension funds (Rs 788.55
 crore), leave encashment (Rs.-21.20 crore) and additional retirement
 benefits (Rs 10.17 crore) on actuarial basis. Total provisions under
 these four categories amounted to Rs 1,160.42 crore during the year
 2010-11, against Rs 402.71 crore during 2009-10. Total corpus available
 with the Bank at the end of March 2011 under these heads was: Rs
 1,289.75 crore (gratuity), Rs 5,177.08 crore (pension funds), Rs 506.31
 crore (leave encashment), and Rs 396.13 crore (additional retirement
 benefits).
 
 Key Financial Ratios
 
 Particulars                              2010-11           2009-10
 
 Return on Average Assets (ROAA) (%)         1.33              1.21
 
 Average Interest Bearing Liabilities 
 (Rs crore)                           2,80,098.94       2,15,886.21
 
 Average Cost of Funds (%)                   4.67              4.98
 
 Average Interest Earning Assets 
 (Rs crore)                           2,82,109.79       2,16,735.54
 
 Average Yield (%)                           7.76              7.70
 
 Net Interest Margin (%)                     3.12              2.74
 
 Cost-Income Ratio (%)                      39.87             43.57
 
 Book Value per Share (Rs)                 504.43            378.44
 
 EPS (Rs)                                  116.37             83.96
 
 
 
 
 Operations and Services
 
 Customer-Centric Initiatives
 
 As always, efficient customer service and customer satisfaction are the
 primary objectives of the Bank in its day to day operations. The Bank
 is highly responsive to the needs and satisfaction of its customers,
 and is committed to the belief that all technology, processes, products
 and skills of its people must be leveraged for delivering superior
 banking experience to its customers without fail.
 
 Recently, the Bank has taken several measures to improve customer
 service at the branches and at the same time, strengthened the customer
 complaint redressal machinery for fast disposal of customer complaints.
 
 Efforts to Improve Customer Service at Branches
 
 The feedback on quality of customer service at branches is obtained
 through the Branch Level Customer Service Committee meetings that are
 held every month in which customers from various cross sections of the
 society are invited including Senior Citizens and Pensioners. The
 suggestions/views generated during the meetings are collated and
 appropriate follow up action is taken to examine the feasibility to
 implement the suggestions for improving the quality of customer service
 rendered at the branches.
 
 The Bank is focused towards providing excellent customer service
 through all delivery channels and has been making continuous efforts
 for enhancing the level of customers satisfaction by leveraging
 technology to provide e-products and alternative delivery channels best
 suited to the diverse needs of different customers. The varied
 interests and expectations of customers are taken care of by improving
 upon the various processes and procedures.
 
 Compliance
 
 The Bank is a member of the Banking Codes and Standards Board of India
 (BCSBI) and has adopted the Code of Commitment to the Customers revised
 by the BCSBI in August 2009 and also, Code of Banks Commitment to
 MICRO and Small Enterprises. The Code has been placed on the Banks
 website and also made available to customers at the branches.
 
 While announcing the Annual Monetary and Credit Policy for the year
 2010-11, the Governor, Reserve Bank of India, had proposed that Banks
 should devote exclusive time in their Board Meetings once in every six
 months to review and deliberate on issues concerning Customer
 Service/Customer Care. To comply with this, two such six-monthly
 reviews were undertaken by the Banks Board for the sub-periods
 January-June 2010 and July-December 2010 during the Board Meetings
 dated 20th November 2010 and 26th March 2011, respectively.
 
 Customer Service Committee of the Board
 
 The Bank has a Sub-Committee of Board for Customer Service which is
 headed by the Banks Chairman and Managing Director with the following
 members as on 31st March 2011.
 
 1.  Shri M. D. Mallya - Chairman and Managing Director
 
 2.  Shri Rajiv Kumar Bakshi - Executive Director
 
 3.  Shri N. S. Srinath - Executive Director
 
 4.  Dr Masarrat Shahid - Director
 
 5.  Shri Maulin Vaishnav - Director
 
 This Sub-Committee addresses the issues relating to the formulation of
 policies and assessment of its compliances which brings about
 consistent improvement in the quality of customer service. It also
 monitors the status of the number of deceased claims pending for
 settlement beyond 15 days pertaining to Depositors/Locker
 Hirers/Depositors of safe custody articles, and reviews the status of
 implementation of Awards passed by Banking Ombudsman. The Committee
 also addresses issues relating to systemic deficiencies existing in the
 Bank, if any brought out by such Awards. The details of the attendance
 of the meetings of “Customer Service Committee of the Board” held on
 21st June 2010, 4th September 2010, 27th December 2010 and 26th March
 2011 during financial year 2010-11 are as follows.
 
  
 
                                  Meetings
 Name of the                      held
 Director           Period        period          Meetings
                                  of their        attended
                                  tenure
 
 Shri M. D. 
 Mallya            01-04-2010     4               4
                   to
                   31-03-2011
 
 Shri Rajiv 
 Kumar Bakshi      01-04-2010     4               4 
                   to
                   31-03-2011
 
 Shri N.S. 
 Srinath           01-04-2010     4               4 
                   to
                   131-03-2011 
 
 Dr Masarrat 
 Shahid            01-04-2010     4               4 
                   to 
                   31-03-2011
 
 Shri Maulin 
 Vaishnav          03-09-2010     2               2 
                   to
                   31-03-2011
 
 Shri A. 
 Somasundaram      01-04-2010     1               1 
                   to
                   30-07-2010
 
 
 
 Standing Committee on Customer Service
 
 The Bank has also set up a Standing Committee on Procedures and
 Performance Audit on Customer Services, comprising of three eminent
 public personalities as members along with both the Executive Directors
 and four General Managers of the Bank.  This Committee oversees timely
 and effective compliance of the RBI instructions on Customer Service
 and also reviews the practices and procedures prevalent in the Bank and
 takes necessary corrective steps on an on-going basis.
 
 The suggestions emanating in the Branch Level Customer Service
 Committee meetings are obtained by the Head Office on quarterly basis
 from Regional Offices and placed before the Standing Committee on
 Procedure and Performance Audit on Customer Services. The feedback of
 the Committee meetings is then put up to the Customer Service Committee
 of the Board of Directors.
 
 Customer-Centric Initiatives and Redressal of Complaints
 
 - The Bank has put in place a Customer Grievance Redressal Policy,
 approved by the Board, and a well structured Customer Grievance
 Redressal Mechanism.  The General Manager in charge of the Operations
 and Services” is designated as Nodal Officer for customer complaints
 regarding the Bank. At Zonal and Regional levels, Zonal Heads and
 Regional Heads are designated as Nodal Officers for their respective
 Zones and Regions. The names of all Nodal Officers along with their
 contact numbers are displayed in all the branches.
 
 - A Note on Review of Customer Services & Grievances Redressal
 Machinery is placed before the Board of Directors every quarter giving
 position of customer complaints received at Regional Offices and Head
 office and the follow up measures with important initiatives taken by
 the Bank for improving the customer services during the period.
 
 - To eradicate customer complaints fully and ensure hassle free
 customer service, analysis is done on the complaints received from the
 customers and suitable timely action is taken so that there is no
 repetition of such complaints in future.
 
 - The Bank has Board approved policies on Customer Services and the
 same are placed on the Banks website.
 
 Based on the feedback and suggestions from the grass root level
 customer committees and various studies/surveys, a slew of customer
 centric initiatives and measures were taken by the Bank during the year
 under review to improve customer service at its branches.
 
 KYC-AML-CFT
 
 Know Your Customer (KYC) norms/ Anti-Money Laundering (AML) standards/
 Combating of Financing of Terrorism (CFT) measures and obligation of
 Bank under PMLA, 2002.
 
 The Bank has Board approved KYC-AML-CFT Policy in place. The said
 Policy is the foundation on which the Banks implementation of KYC
 norms, AML standards, CFT measures and obligation of the Bank under
 Prevention of Money Laundering Act (PMLA) 2002 is based.
 
 The major highlights of KYC-AML-CFT implementation across the Bank are
 as under.
 
 - Generation of Cash Transaction Reports (CTRs) electronically for
 submission to Financial Intelligence Unit (FIU), through the electronic
 medium.
 
 - Installation/Implementation of “AML Solution” for generating system
 based alerts.
 
 - System-based detection and submission of Suspicious Transaction
 Reports (STR) to the Financial Intelligence Unit (FIU).
 
 - System based Risk Categorization (from AML Measure) of Banks
 customers accounts every half year.
 
 - Filing of Counterfeit Currency Reports (CCRs) to FIU- IND, New Delhi.
 
 The full KYC compliance entails staff education as well as customer
 education for which the following measures have been taken by the Bank.
 
 - A comprehensive list of KYC documents is uploaded on the Banks
 website (www.bankofbaroda.com) for the benefit of customers.
 
 - A KYC-AML page is created at the Banks Intranet for posting
 reference material on KYC-AML-CFT education.
 
 - Regular Training Sessions are conducted on KYC-AML-CFT guidelines at
 the Banks training establishments.
 
 - Training is being arranged for the Banks Senior Officials/Executives
 at RBI, IBA and National Institute of Bank Management (NIBM).
 
 - Sustained efforts are made to create expertise at the Banks Head
 Office for Corporate Oversight and also for the KYC Audit of branches.
 
 Government Business
 
 The Banks Government Business department has primarily focused on
 three activities, notably, Control and Maintenance, Business
 Development and Pension Back Office during the year 2010-11.
 
 To facilitate its activities, the Department created a special vertical
 for its operations in New Delhi, headed by an Assistant General Manager
 for ensuring better liaison with various ministries and departments of
 Government of India. The main achievement of this department during the
 year 2010-11 may be summarized as follows.
 
 1) The Bank received authorisation for payment of pension to all
 Central Civil Pensioners in the country.
 
 2) Also, the Railway Board, RBI and CGA authorised the Bank to
 undertake pension payment to the Railway
 
 Pensioners under Single Window Scheme (SWS) under which reimbursement
 of pension paid would be available at CAS, Nagpur.
 
 3) Processing of pension of more than 55,000 Railway Pensioners would
 also be done at CPPC under the Single Window System (SWS) with effect
 from April, 2011.
 
 4) During the review period, the Bank got authorisation for e-payment
 of State Taxes in the States of Tamil Nadu, Kerala, Uttarakhand,
 Karnataka, Andhra Pradesh, West Bengal and Delhi.
 
 5) Conclusion of Agreement with Stock Holding Corporation of India
 (SCHIL) for sale of e-stamps. This business has commenced in the State
 of Gujarat.
 
 6) Special Savings Bank Product for Pensioners “Baroda Pensioners
 Savings Bank Account” was launched where pensioners get overdraft
 equivalent to two- month pension.
 
 7) Collection of RTO Fees in the State of Gujarat and Tamil Nadu.
 
 8) Moreover, the Bank is now the Direct Agency Bank for Railway Receipt
 and Payment Business instead of Sub Agent of State Bank of India at
 nine locations.
 
 9) For the benefit of the Pan Indian Customers, a proposal has been
 sent to Ministry of Finance for authorising 700 additional branches for
 PPF/SCSS Business.
 
 10) The Bank implemented a revised accounting procedure and system for
 Postal as well as Railway Receipt & Payment Business for automated
 reimbursement process and to eliminate losses due to a negative float.
 
 11) Commencement of the Payment of Income Tax through ATMs.
 
 12) The customers were enabled to view their 26AS Statement of Income
 Tax deposited through the Banks Internet Banking facility - Baroda
 Connect.
 
 13) The Bank was authorized for collection of Custom Duty through
 e-mode at all locations in the country.
 
 Vigilance
 
 Vigilance activity in the Bank is an integral part of the managerial
 function and primarily aims at (1) ensuring integrity, (2) protecting
 the innocent (i.e., supporting quality decisions), (3) eliminating
 forces that thwart integrity, and (4) preventing the losses -- both the
 financial as well as reputational for the Bank.
 
 A rational distinction is drawn between a business loss, which has
 arisen as a consequence of a bona-fide commercial decision, and an
 extraordinary loss, which has occurred due to mala-fide, motivated or
 reckless performance of duties. On the one hand, to keep the morale of
 the employees high and on the other hand, to weed out the attempts of
 the unscrupulous persons, efforts are made to bring the departmental
 action to its logical conclusion expeditiously.
 
 The Vigilance machinery in the Bank is effectively performing its
 proactive role in new risk prone areas emerging in computerized/
 e-Banking environment, in addition to sensitising all categories of
 staff members with the various preventive measures. The Bank has been
 taking suitable steps towards preventive, detective and punitive
 vigilance as per the Government of India guidelines.
 
 With a view to share the various modus operandi of ingenious frauds
 with the staff members, Quarterly Vigilance Newsletter has been
 introduced by the Vigilance Department of the Bank to keep the staff
 alert so that they should not fall prey to such attempts. The Bank has
 also introduced a scheme for granting rewards to employees for
 detecting and foiling attempts of frauds/prevention of frauds with a
 view to encourage the vigil and alertness displayed by the employees
 while performing the duties and thereby detecting/foiling the attempted
 frauds.  With the awareness, alertness and diligence exhibited by the
 operating staff, 58 fraudulent attempts by unscrupulous elements were
 thwarted, during the year April 2010 to March 2011, which saved the
 Bank from substantial financial loss.
 
 Business Performance
 
 Given below are the details of the Banks major achievements on
 business front during 2010-11.
 
 Resource Mobilisation and Asset Expansion
 
 The share of Banks deposits in total resources stood at 85.22% as of
 31st March 2011. The total deposits grew from Rs 2,41,261.93 crore to
 Rs 3,05,439.48 crore, posting a growth of 26.60% over the previous
 year. Of this, Savings Bank Deposits
 
 - an important constituent of low cost deposits grew by 22.67%
 
 - from Rs 52,543.92 crore to Rs 64,454.04 crore. The share of low cost
 deposits (Current plus Savings) in Total Deposits (Domestic plus
 Overseas) was at 28.68% and in Domestic Deposits at 34.36%.
 
 During the year 2010-11, interest rates offered on the most popular
 buckets of retail term deposits of commercial banks in India increased
 by 200 to 250 bps making low cost deposits a less attractive
 proposition. Across the banking industry, the
 
 share of low cost deposits (CASA) to total deposits shrank sharply
 during 2010-11. Even for Bank of Baroda the domestic CASA share
 marginally declined from 35.63% to 34.36% on a year on year basis.
 
 The Banks Global Advances expanded significantly and much above the
 banking industry average by 30.65% during 2010-11 led by 28.69%
 expansion in domestic advances and 36.59% expansion in overseas
 advances.
 
 Unlike the experience of Indian banking industry, Bank of Barodas
 Total Credit growth (at 30.65%) was in proper alignment with its Total
 Deposit growth (at 26.60%) during 2010-11.
 
 Composition of Funds - Global
 
 Particulars         End               End          Growth
                    March             March 
                    2010              2011  
                  (Rs crore)        (Rs crore)
 
 Deposits        2,41,261.93       3,05,439.48       26.60%
 
 - Domestic      1,85,500.25       2,33,323.30       25.78%
 
 - Overseas        55,761.68         72,116.18       29.33% 
 
 Borrowings        13,350.09         22,307.85       67.10%
 
 
 Global Advances
 
 Particulars          End               End          Growth
                     March             March 
                      2010              2011  
                  (Rs crore)        (Rs crore)
 
 Advances        1,75,035.28       2,28,676.36       30.65%
 
 - Domestic      1,31,643.62       1,69,407.86       28.69%
 
 - Overseas        43,391.66         59,268.50       36.59%
 
 
 Wholesale Banking
 
 A strong corporate credit culture and consistent growth in credit way
 above the banking industry average have been the key differentiators of
 Bank of Baroda.
 
 The Banks Wholesale Banking Division offers a full range of loan
 products and services such as Term Loans, Short- Term Loans, Demand
 Loans, Working Capital Facilities, Trade Finance Products, Treasury
 Products, Bridge Loans, Syndicated Loans, Infrastructure Loans, Cross
 Currency/ Interest Rate Swaps, Foreign Currency Loans, Loan Against
 Future Rent Receivables and many more to its large and mid corporate
 clients depending upon their needs. The product offerings are flexible
 and suitably structured taking into account the customers risk
 profiles and specific needs.
 
 Based on the superior product delivery, passionate service orientation,
 timely and speedier sanctions with a customer- centric approach, the
 Bank has made significant achievements into providing an array of
 Wholesale Banking products and services to several multinationals,
 domestic business houses and prime public sector companies.
 
 The Wholesale Banking Department started the year 2010-11, with a motto
 - “Year of Strengthening Corporate Relationship”
 
 and the focus was to improve the share of business from the existing
 customers, thereby, strengthening the relationship with them and also
 building new relationships by targeting the Corporates who were
 hitherto not banking with the Bank.
 
 Under Wholesale Banking, the Corporate Customers are identified as
 Large and Mid Corporates. Those having annual sales turnover of over Rs
 150 crore but up to Rs 500 crore are classified as Mid Corporates, and
 those having a sales turnover of above Rs 500 crore are classified as
 Large Corporates.
 
 During 2010-11, the Wholesale Banking Division sanctioned fresh
 facilities to 239 first time entrants amounting to Rs 36,318.67 crore
 through its Fast Track scheme and achieved increase in the existing
 accounts to the tune of Rs 41,660.31 crore, thus, the total sanctions
 from the department reaching a figure of Rs 77,978.98 crore. This
 exceeds the total sanctions for the previous year by almost Rs 7,900
 crore. The major sanctions were given to sectors like iron & steel,
 metals & metallic products, commercial real estate and infrastructure
 segments like power, roads, telecommunication, etc.
 
 Reduction in Turnaround Time in Wholesale Banking
 
 The Department placed a major thrust on faster delivery through
 efficient channels and adoption of better practices in credit
 administration. Efforts were also made to improve the speed of decision
 making without compromising the quality of decision. Simplification of
 credit proposal formats was carried out, so that all vital information
 was captured with a sense of objectivity, thereby quickening the
 decision-making process.  This helped the Bank a great deal in reducing
 the turnaround time. The Department targets to reduce the time taken
 for according a sanction to less than 25 days.
 
 Project Finance Division
 
 The Project Finance Division, a part of the Wholesale Banking
 Department earned total fee income of Rs 19.14 crore during 2010-11
 through conducting 156 TEV (i.e., Technical Evaluation & Viability)
 studies and vetting of projects and syndication deals. This is in
 comparison to the fees of Rs 6.84 crore earned during 2009-10 out of
 TEV, vetting of projects and
 
 also Syndication deals. The Division finalized 15 syndication deals
 during the year as against three deals during the last year.
 Furthermore, the fee receipts during the year have increased to Rs
 14.67 crore as against Rs 3.98 crore last year. Out of the total booked
 Syndication fees of Rs 30.42 crore, the amount already received was Rs
 14.67 crore and the balance amount of Rs 15.75 crore will be received
 during the year 2011-12.
 
 Marketing Efforts in Wholesale Banking
 
 The Department is planning to have a full-fledged Market Intelligence
 Unit and a vibrant Marketing Team to target newer companies from the
 perspective of significant business opportunities, especially in loan
 syndication. The Project Finance Division attached to the department
 has been tracking the Projects Today database on a regular basis and
 identifying upcoming projects. The Relationship Officers identified to
 handle various states of India and attached to Wholesale Banking
 Department are also on the move to their respective states to have a
 continuous liaison with the existing units and to help the Zonal
 Offices in those states in targeting the new customers.
 
 Other Initiatives
 
 Additionally, the Banks Wholesale Banking Division took the following
 initiatives during 2010-11 to strengthen this portfolio further.
 
 1) A substantial improvement was brought about in communication
 channels between the Corporate Office and Operating Units of the Bank
 by creating separate e-mail IDs for different purposes like agreement
 in principle, modifications and submission of credit proposals, etc.
 
 2) A dedicated focus was given to upgradation of skills and knowledge
 levels of officers working in the Department including the new campus
 recruits.
 
 3) A thrust was placed on regular grooming of Credit Officers and Forex
 Officers to handle the credit portfolio of large number of branches.
 
 4) A Plan was made to open additional Corporate Financial Services
 branches in North Mumbai, Greater Noida and Surat.
 
 5) The Department closely tracked the Mid Corporate segment accounts by
 identifying the segment as a separate line of business. It is now
 proposing to open 14 exclusive Mid-Corporate branches during the year
 2011-12, for which licenses were obtained from the RBI.
 
 6) The Department organized several customers meeting and one-to-one
 meetings between the Corporates and the Members of Top Management of
 the Bank to have first-hand information on their business and credit
 requirements.
 
 7) The Department took active interest in recruiting specialized
 officers from campuses and Institute of Chartered Accountants of India
 (ICAI) and placing
 
 them in vital areas of credit administration across the
 branches/administrative offices, etc., for bringing in new blood and
 filling the vacancies arising out of attrition and retirement.
 
 Retail Business
 
 As in the past, the Retail Business continued to be one of the thrust
 areas for achieving business growth during the year 2010-11. The Banks
 performance during Financial Year 2010- 11 under Retail Banking Segment
 is as under.
 
 Growth under Retail Lending
 
 Retail Loan outstanding was Rs 32,434.84 crore as on 31st March, 2011,
 as against the level of Rs 24,247.71 crore as on 31st March, 2010. A
 growth of 33.76% (Rs 8,187.12 crore) was registered during 2010-11 as
 against a growth of 23.53% (Rs 4,619.76 crore) registered during the
 previous year. The growth under five key products (excluding
 LABOD/ODBOD etc) was 21.56% (Rs 4,094.72 crore) over the level of Rs
 18,992.00 crore at end-March, 2010. During the same period of 2009-10,
 growth under the five key products was 22.65% (Rs 3,507.36 crore) over
 the level of Rs 15,484.63 crore as of end-March, 2009.
 
 NPA under the Retail Loan
 
 The amount of Non Performing Assets as on 31st March, 2011 under Retail
 Loan was Rs 579.83 crore (1.79%) as against the level of Rs 511.77
 crore (2.11%) as on 31st March, 2010.
 
 Savings Bank Deposits
 
 The Banks Domestic Savings Deposits stood at a level of Rs 62,959.07
 crore as on 31st March, 2011 registering a growth of 22.83% (Rs 11,702
 crore) over the level of Rs 51,257.55 crore as on 31st March, 2010.
 
 Initiatives in Retail Banking during 2010-11 New Products Launched
 
 - A new Retail Asset Product styled as Baroda Traders Loan against the
 Security of Gold Ornaments/ Jewellaries was launched during 2010-11.
 Also, its variant termed as “Baroda Advance against Gold Ornaments
 /Jewellaries” was launched at all Metro and Urban branches of the Bank.
 
 - A Retail Asset scheme under Baroda Personal Loan styled as Baroda
 Loan to Retirees for Pension Option was introduced on 4th December,
 2010 for a limited period up to 11th December, 2010.
 
 - Education Loan Interest Subsidy Scheme for students belonging to
 Economically Weaker Sections was launched as per the directives of
 Ministry of Human Resource Development, Government of India.
 
 - A new Term Deposit Product styled as Baroda Utsava Deposit Scheme for
 444 days was introduced on 15th October 2010 at the interest rate of
 8.10% which was revised from time to time and last increased to 9.35%
 with effect from 1st March, 2011. A fresh deposit of Rs 19,918 crore
 was mobilized up to end-March, 2011 under the product.
 
 - Two new Retail Liability Products under Savings Bank Segment styled
 as Baroda Pensioners Savings Account and a Life Insurance linked
 Savings product styled as Baroda Jeevan Suraksha Savings Account under
 a tie-up arrangement with IndiaFirst Life Insurance Company were
 launched on 15th January 2011.
 
 Business Initiatives
 
 - To mobilise low cost deposits aggressively, a Savings Bank Deposit
 Campaign was launched on 21st June, 2010 for the period of three
 months. An amount of Rs 1,944 crore as fresh Savings Bank Deposit was
 mobilized during this campaign. A second Savings Bank Deposit Campaign
 was launched from 1st December, 2010 to 31st March, 2011, which
 generated a fresh Savings Bank Deposit to the tune of of Rs 3,081 crore
 under 1,014,589 accounts.
 
 - For augmenting Retail Loan Portfolio, a Retail Loan Festival Campaign
 was launched from 1st October, 2010 to 31st December, 2010. During the
 campaign, a total of Rs 1,218 crore was disbursed under both Home and
 Auto Loans.  Another Retail Loan Campaign specially focused on Home
 Loans and Auto Loans was launched from 1st February 2011 to 31st March,
 2011. A fresh business of Rs 891.74 crore was generated during this
 campaign.
 
 - To increase the attractiveness, maximum period of deposits under
 Recurring Deposit and Yatha Shakti Jama Yojna were increased to 120
 months from the existing 36 months.
 
 - Interest Rate Structure on Car Loans was revised from Quantum Based
 Interest Rates to Tenor Based Interest Rates with effect from 1st
 September, 2010.
 
 - To facilitate the borrowers, an Online Auto Loan Application Module
 was made live with effect from 9th August, 2010.
 
 - A Tie-up Arrangement was made with IndiaFirst Life Insurance Company
 for providing Life Insurance Cover to the Banks Home Loan borrowers.
 
 - A “Reward & Recognition Scheme” for the Banks staff under Group
 Credit Insurance scheme in a tie-up arrangement with Kotak Life
 Insurance and IndiaFirst Life Insurance was initiated with effect from
 1st October, 2010.
 
 - The Bank opened a new Gen-next branch in NOIDA during
 
 the first quarter of 2010-11 and now the total number of Gen Next
 Branches is eight.
 
 - Five new Retail Loan Factories at Karol Bagh New Delhi, Raipur,
 Ludhiana and Nasik were opened during 2010- 11, whereas one existing
 RLF at Jodhpur was closed.  With this the total tally of the Banks
 Retail Loan Factories (RLFs) is 35.
 
 - Existing accounts of Home Loans and Education Loans were also brought
 into the ambit of Group Credit Life Insurance Cover under the tie-up
 arrangement with Kotak Life Insurance and IndiaFirst Life Insurance
 with effect from 31st December, 2010.
 
 Wealth Management Services
 
 As a part of customer centric measures, the Bank has been providing
 Wealth Management Services to its high net worth (HNI) and affluent
 customers as a Total Financial Solution at one place since June 2004.
 At present, the Bank provides through the network of its branches,
 various third party products in Life Insurance, Non Life Insurance
 including Health Insurance, Mutual Funds and Equity Trading under the
 tie-up arrangements with different partners.
 
 Moreover, during the last couple of years, the Bank has formed two
 joint ventures (JV) with the leading international brands in the Mutual
 Fund and Life Insurance segments.
 
 Baroda Pioneer Asset Management Co. Ltd., a joint venture in Mutual
 Fund in association with Pioneer Investments of Italy, and IndiaFirst
 Life Insurance Co., a joint venture in Life Insurance with Andhra Bank
 and L&G of U.K. have successfully positioned themselves in the Indian
 market with encouraging performance even in the initial stages of their
 business.
 
 The extension of ASBA (Application Supported by Blocked Amount)
 facility (i.e., the supplementary process of applying in IPO/FPO/Right
 issues) to 2,100 more branches during the year, has enabled almost all
 branches to provide the additional value added services to its
 customers. This is a step further in our endeavor to protect customers
 interest and provide them with new services. The Bank also launched
 during the year an on-line ASBA Facility for its Net Banking customers,
 which provides the convenience of a simple, instant, secure and 24x7
 facility to apply for IPO/FPO/NFO to the Barodaconnect (i.e., the
 Banks internet banking platform) customers from the comfort of their
 homes/residences.
 
 The Bank has also established Baroda Gold Lounge in 13 select
 strategically located branches, which are distinct dedicated spaces to
 provide par excellence investment advisory services to HNI customers of
 the Bank. Initiatives taken by the Bank under the Wealth Management
 Services have started contributing encouragingly to its non-interest
 income.
 
 MSME Business
 
 The Micro, Small and Medium Enterprises (MSME) segment is a vital
 component of Indian economy. This sector accounts for around 40.0% of
 total industrial production, 34.0% of industrial exports and 95.0% of
 industrial units and 35.0% of total employment in manufacturing and
 service sectors of India.  The contribution of services sector within
 the SME segment is
 
 quite significant, especially the IT enabled services, hospitality
 services, tourism, couriering, transportation, etc.
 
 To give a focused attention to emerging SMEs in India, the Bank has
 been considering other commercial units with a turnover up to Rs 150
 crore at par with the SMEs. To promote the growth of SME sector, the
 Bank has launched a special and novel delivery model, viz. SME Loan
 Factory, which at present, is made operational in 36 centres of the
 Bank and well accepted in the market place. The SME Loan Factory is an
 innovative model for streamlining processes and for timely sanction of
 SME loan proposals. The model comprises of the Central Processing Cell
 for speedy appraisal and sanctioning of proposals within the stipulated
 deadline and a sales team to follow up on leads generated by the
 branches. Going by the past success, the Bank is planning to open more
 such loan factories in the ensuing year. The Bank has SME Loan
 Factories at all major business centres across the country viz. Agra,
 Ahmedabad, Bangalore, Bareilly, Baroda, Bhilwara, Bhubhaneshwar,
 Bulsar, Chandigarh, Chennai, Coimbatore, Dehradun, two Factories in
 Delhi, Hyderabad, Indore, Jaipur, Jamshedpur, Jamnagar, Jodhpur,
 Kanpur, Kolhapur, Kolkata, Lucknow, Ludhaina, 3 Factories in Mumbai,
 Nagpur, Nashik, Pune, Rajkot, Raipur, Surat, Varanasi and
 Vishakhapatnam.  These SME Loan Factories together sanctioned loans
 aggregating Rs 14,530 crore during 2010-11 as against Rs 11,071 crore
 in the previous year.
 
 Growth of Business
 
 The total outstanding in MSME Sector works out to Rs 27,365 crore as on
 31st March 2011. The growth in lending to MSME Sector during the last
 three years is given in the table below.
 
 Year                 Growth
                    (%, YoY)
 
 2008-09              24.18%
 
 2009-10              43.98%
 
 2010-11              29.63%
 
 The percentage growth of MSME credit during 2009-10 was relatively high
 as the advances up to Rs 20 lakh to Retail Trade were classified for
 the first time under the “Micro & Small Enterprises Sector” in 2009-10,
 in line with the RBIs revised guidelines issued during September,
 2009. The growth rate
 
 was normalized during the year 2010-11.
 
 The Bank took the following initiatives in its SME business segment
 during the year under review.
 
 Initiatives in MSME Financing During 2010-11
 
 1. During this year, the Bank introduced five new customer- centric,
 area-specific products to suit the local cluster needs along with the
 renewal of eight existing customer-centric area-specific products.
 
 2. The Bank sponsored a workshop on “Management Skills to Source
 Financing and Management of Technology by SMEs” for entrepreneurs
 organized by the AIMA at Faridabad.
 
 3. The Bank introduced “Protrack” - an e-tracking system for the SME
 credit proposals with a view to have control over the turnaround time.
 
 4. The Bank celebrated SME Festival from 1st January 2011 to 28th
 February 2011 in order to give boost to SME advances.  Some concessions
 in the rate of interest and service charges were announced for loans
 sanctioned during the celebration period.
 
 5. The Bank participated in the Workshops arranged by CGTMSE on Bank
 Credit to Micro & Small Enterprises and the Role of Credit Guarantee.
 
 6. The Bank accorded higher importance to Increase the flow of credit
 to MSME with a special emphasis on Micro Enterprises.
 
 7. The Bank focused on collateral free credit under the CGTMSE scheme
 through a special campaign.
 
 8. The Bank achieved total customer relationship through enhanced
 cross selling, locational meetings, involvement of trade bodies at the
 national and state levels.
 
 9. The Bank placed emphasis on continuous knowledge updating and skill
 building of processing/marketing officers attached to its SME factories
 with the help of external and internal training outfits.
 
 Rural and Agricultural Lending
 
 The Bank has always been a frontrunner in the area of Priority Sector
 and Agriculture lending, harnessing the vast potential of the rural
 market through its wide network of 1,171 rural branches
 
 and 832 semi-urban branches. The Bank has opened 157 new branches in
 rural and semi-urban areas during 2010-11. The Bank is the convener of
 the State Level Bankers Committee (SLBC) in UP and Rajasthan. The Bank
 also shoulders the Lead Bank Responsibility in 45 districts in the
 states of Gujarat (12), Rajasthan (12), Uttar Pradesh (15), Uttaranchal
 (2), Madhya Pradesh (2) and Bihar (2).
 
 Moreover, there are five Bank sponsored Regional Rural Banks (RRBs) in
 various states with a network of 1,223 branches and total business of
 Rs 18,800 crore as of end-March, 2011.
 
 Performance of Priority Sector Lending in 2010-11
 
 Priority Sector Advances of the Bank surged from Rs 48,552.36 crore as
 at the end-March 2010 to Rs 57,363.60 crore as at the end-March 2011
 and formed 43.57% of the Adjusted Net Bank Credit (ANBC) against the
 mandated target of 40.00%.
 
 Agriculture Advances (both direct and indirect) of the Bank recorded a
 growth of 13.47% over the previous year and rose to Rs 24,529.22 crore
 as at end-March 2011. However, the Banks lending to Direct Agriculture
 depicted a stronger growth of 28.72% (y-o-y) to Rs 17,157.83 crore
 during 2010-11.
 
 Under its flagship agriculture loan product “Baroda Kisan Credit Card”,
 the Bank issued as many as 2,44,558 Credit Cards during 2010-11 to
 provide credit to farmers. The Bank financed as many as 2,72,415 new
 farmers during the year under review.  As a part of its microfinance
 initiatives, the Bank credit-linked 19,257 Self Help Groups (SHGs) with
 an amount of Rs 163.77 crore during 2010-11, thereby taking the total
 number of SHGs credit-linked to 1,34,942 amounting to Rs 956.96 crore.
 
 Business and Social Initiatives
 
 Besides posting a healthy business growth, the Bank undertook several
 initiatives during 2010-11 to harness the emerging opportunities for
 rural and agriculture lending. Some of them are mentioned below.
 
 1. To augment its Agriculture advances, the Bank conducted special
 campaigns, viz. Kharif and Rabi campaigns for crop loans, under which
 the disbursements of Rs 2,317 crore and Rs 1,231 crore were made,
 respectively. Another Campaign for Investment Credit was also
 undertaken under which disbursements of Rs 993 crore were made.
 
 2. The Bank organized 3,323 Village Level Credit Camps and disbursed
 Rs 3,169 crore to 2,30,599 borrowers during 2010-11.
 
 3. The Bank identified 450 Thrust Branches across India to enhance
 Agriculture Lending which constituted 34.0% of the total Agriculture
 Lending as at end-March 2011.
 
 4. The Bank formulated various area-specific schemes, tailor made to
 the needs of local requirements, particularly where there is a
 concentration of industries like Rice Mills, Cold storages, cotton
 ginning units, Poultry units, etc.  Moreover, suitable concessions in
 the rate of interest, service charges, etc., were allowed under these
 schemes to garner maximum possible business. As many as 22 area
 specific schemes were formulated to increase the lending to agriculture
 sector.
 
 5. Baroda Grameen Paramarsh Kendra (BGPK) - was another initiative
 undertaken by the Bank to help the rural community by providing credit
 counseling, financial literacy and other services like information on
 the prices of agricultural produces, scientific farming, etc. The Bank
 established 52 BGPKs as on 31st March, 2011.
 
 6. Furthermore, eleven more Baroda Swarojgar Vikas Sansthan (BSVS),
 Baroda R-SETI centres were opened during the year under review. With
 this, the total number of BSVS went up to 36. Besides, Raebareli and
 Ajmer BSVS were created exclusively for women entrepreneurs.  The BSVS
 are primarily the institutes for training the youth and imparting
 knowledge and skills required for taking up self-employment ventures.
 During the year 2010-11, around 42,212 youth beneficiaries were trained
 out of which 28,331 have established self-employment ventures. It is
 heartening to see that out of the total 79,442 beneficiaries trained by
 these centres so far, 50,035 have already established their self
 employment ventures.
 
 Financial Literacy and Credit Counseling Centres (FLCC)-“SARATHEE”
 
 Based on the guidelines issued by the RBI, the Bank has established 18
 FLCCs, christened as “SARATHEE” to impart financial literacy and credit
 counseling services to the needy people to help them avail financial
 services from the banking
 
 system and also to provide counseling services to those who are under
 financial distress due to the debt burden. The Bank has opened these
 centres under its BSVS trust. Free counseling services are being
 provided to the concerned free of cost. The Bank opened 14 new FLCCs
 during 2010-11, taking the total number of FLCCs to 18 as on end-March
 2011. The Bank has firmed up a plan to open FLCCs in each of its lead
 districts in due course.
 
 Business Facilitators Model
 
 This model has been implemented across India to accelerate the process
 of Financial Inclusion of the excluded segment as well as to augment
 the Banks agriculture portfolio. Business Facilitators will mainly
 canvass loan applications for the Bank for which the Bank will pay them
 compensation. Individuals including retired bankers and Government
 employees, NGOs, farmers clubs and SHGs are engaged as agents to
 improve the Banks outreach in the rural and semi-urban areas.
 
 Micro Loan Factory
 
 Additionally, the Bank has opened Micro Loan Factories at Raebareli and
 Sultanpur in U.P. The Micro Finance Loan Factory has a mobile van with
 facilities and all related stationeries/ documents on the SHG
 financing. It is manned by officers who are duly authorised to sanction
 and disburse loans up to Rs 25,000 to SHGs on the spot and at their
 doorsteps.
 
 Performance of RRBs Sponsored by the Bank
 
 The Bank has sponsored five RRBs as under.
 
 - Baroda Uttar Pradesh Gramin Bank, Head Office: Raebareli.
 
 - Baroda Rajasthan Gramin Bank, Head Office: Ajmer.
 
 - Baroda Gujarat Gramin Bank, Head Office: Bharuch.
 
 - Nainital-Almora Kshetriya Gramin Bank, Head Office: Haldwani.
 
 - Jhabua-Dhar Kshetriya Gramin Bank, Head Office: Jhabua.
 
 The aggregate business of these five RRBs rose to Rs 18,803.05 crore as
 of end-March, 2011 from Rs 16,244.41 crore as at end-March, 2010,
 registering a year on year growth of 15.75%.
 
 The five RRBs together posted a net profit of Rs 116.53 crore during
 2010-11 as against Rs 118.93 crore earned during 2009-10. The “Net
 Worth” and the “Reserves and Surplus” of all these RRBs put together
 improved from Rs 609.12 crore at end-March, 2010 to Rs 729.96 crore at
 end-March, 2011 and from Rs 354.43 crore at end-March, 2010 to Rs
 452.68 crore at end-March, 2011, respectively.
 
 Banks efforts towards Financial Inclusion
 
 The Bank has formulated a three-year Financial Inclusion (FI) Plan as
 per the RBI guidelines issued in 2010 that was approved by the Banks
 Board. However, keeping in view the mandate given by the Government of
 India, the SLBCs allotted
 
 2,864 villages to the Bank, each having population more than 2,000 that
 are to be covered under the FI Plan by March 2012, of which 1,200
 villages were targeted to be covered by March 2011. The Bank
 comfortably surpassed this target and extended banking services to
 1,228 villages during the year 2010-11. The remaining villages are
 proposed to be covered in the year 2011-12.
 
 To reach out to such unbanked villages, two delivery channels have been
 adopted i.e. ICT based Business Correspondent (BC) Model which is based
 on the Application Service Provider (ASP) model with Biometric Smart
 Card based technology wherein Business Correspondents visit villages
 with Point of Service (POS) devices for carrying out transactions.
 Under this model, the customers can operate their accounts using their
 Smart Cards though the biometric authentication. The second delivery
 channel adopted is Mobile Banking. Under this, the Mobile Vans move
 within a cluster of villages in close proximity to the Banks existing
 branches. The Vans with the Banks staff visit the identified villages
 during some fixed days in a week for providing banking services. At
 present, a Mobile van has been deployed in Charada branch of Mehsana,
 Gujarat and three more vans have been deployed at Allahabad, Varanasi
 and Bihar.
 
 As per the directive of the Government of India, the Banks Chairman
 and Managing Director, Executive Directors and Corporate General
 Managers have been visiting the villages
 
 under the FI Plan regularly to oversee the implementation and progress
 of the Banks FI mission.
 
 Advances to SC/ST Communities during 2010-11
 
 The outstanding advances granted by the Bank to SC/ST communities have
 been growing healthily year after year. This is evident from the fact
 that the outstanding advances granted to these beneficiaries went up
 from Rs 3,100 crore as at end- March, 2010 to Rs 3,760 crore as at
 end-March, 2011.
 
 In fact, the SC/ST communities accounted for a share of 28% in the
 total advances granted to Weaker Sections during the year under review.
 
 Furthermore, a special thrust is laid by the Bank in financing SC/ ST
 communities under various government sponsored schemes namely
 Swaranjayanti Gram Swarojgar Yojana (SGSY), Swarna Jayanti Shahari
 Rojgar Yojana (SJSRY), Prime Minister Employment Generation Programme
 (PMEGP), etc.
 
 It is heartening to note that the Baroda Swarojgar Vikas Sansthans
 (BSVS) have been giving due preference to SC/ ST communities while
 selecting the trainees. So far, these centres have trained 29,721
 youths under the SC/ST category of which 18,735 have already
 established their self employment ventures.
 
 International Business
 
 The improvement in global economic scenario, strong economic revival
 especially in the advanced countries and a substantial growth in the
 International Trade flows supported growth of business and
 profitability of International Operations. The Bank leveraged on its
 long experience of international banking, strong and loyal customer
 base, time-tested business model, technological initiatives to live up
 to its position as the Indias International Bank.
 
 During 2010-11, there was a better than expected growth in the business
 and profits of the Banks International Operations. The asset growth
 was further assisted by Foreign Currency requirements of Indian
 Corporates for their overseas expansion, and, also, to take advantage
 of the difference in cost of resources. To meet the requirements of
 borrowers, the Bank raised Foreign Currency resources in timely fashion
 at overseas centres at the finest terms supported by the Banks strong
 credit story.
 
 The Bank kept continuous watch on economic, social and political
 developments around the world to safeguard its business interests. The
 business model was aligned and risk management functions were further
 strengthened to take care of any shocks in the ever-changing
 international scenario.
 
 The overseas branch network was further expanded to 85 branches/offices
 offering further opportunities for generating profitable growth of
 business.
 
 Business and Profit Performance
 
 During 2010-11, the total business (Deposits + Advances) of the Banks
 Overseas Branches registered a growth of 32.51% (y-o-y). The Customer
 Deposits increased by 23.44%, Total Deposits by 29.33 % and Advances by
 36.59%. The International Operations contributed 24.6% to the Banks
 global business as on 31st March, 2011.
 
 Total Assets
 
 Total Assets of the Banks International Operations increased from Rs
 68,375 crore to Rs 91,273 crore registering a growth of 33.49% during
 the year.
 
 Net Profit
 
 The Gross Profit for the year 2010-11 registered a healthy growth of
 23.94% over the level of previous year. The Net Profit, however,
 declined by 7.32% due to an unfavourable statistical base effect.
 During the year 2009-10, the Net Profit had increased sharply because
 of the reversal of provisions made under Mark to Market of
 Investments. The contribution of international operations to the Banks
 Total Net Profit stood at 19.15% during 2010-11.
 
 Asset Quality
 
 Consistent with its past practices, the Bank took all the necessary
 safeguards at the time of asset creation and ensured monitoring of
 assets on an ongoing basis to be in readiness for any eventualities in
 the economic scenario around the world.
 
 The accounts restructured in previous years as per the RBI norms were
 continuously monitored during 2010-11 to ward off any deterioration in
 the asset quality. In NPA accounts, there were continuous efforts for
 upgradation/recoveries as per the norms in the country of operation. As
 a result, the Gross NPAs to Total Advances were contained at 0.62% as
 on March 2011.  The Net NPAs too were modest at 0.19%.
 
 International Presence
 
 With the commencement of operations in New Zealand, the Bank extended
 its overseas presence to 26 countries with 85 branches/offices as
 under.
 
 Banks Overseas Branches                        54
 
 Banks Representative Offices                    3
 
 Branches of Banks Overseas Subsidiaries        28
 
 Total                                           85
 
 In addition to the above, the Banks associate in Zambia has 12
 branches.
 
 Overseas Expansion
 
 During the year 2010-11, the Bank opened seven new branches/ offices
 (including the ones for its overseas subsidiaries). A branch was opened
 at Ilford, Essex (U.K.) and five Electronic Banking Service Units
 (EBSUs) in UAE at RAKIA, Ras Al Khaimah, Al Qusais, Dubai, Sh. Zayed
 Road, Dubai, Al Karama, Dubai and National Paints, Sharjah. The
 subsidiary in New Zealand - Bank of Baroda (New Zealand) - commenced
 operations with the opening of branch at Auckland.
 
 Future Plans in Overseas Business
 
 In order to serve the ever increasing expatriate Indian population and
 corporates around the world and canvass more diversified business for
 the Bank, ambitious overseas expansion plans have been drawn by the
 Bank. It proposes to further expand its network by opening additional
 branches in countries where it is already present, and, also wants to
 enter new territories. Steps have been initiated for opening of two
 branches and two EBSUs in UAE, one branch in Oman and one branch in
 Mauritius. The work related to the opening of eight new branches of the
 subsidiaries is at an advanced stage.  The subsidiaries in Uganda,
 Kenya and New Zealand will be opening two branches each and in Botswana
 and Guyana, one additional branch will be opened.
 
 The Banks applications for setting up of a subsidiary in Suriname and
 Canada, opening of a branch in Qatar and upgradation of a
 Representative Office in Australia to a branch are under process by the
 host country regulators. The Bank has already initiated steps for
 identification of new centres for overseas expansion.
 
 Syndication Centre
 
 The Banks Global Syndication Centres at London and Dubai, supported by
 the Offshore Banking Unit at Singapore and other branches in major
 financial centres, are actively catering to the needs of Indian and
 local corporates for Foreign Currency funds. The International Merchant
 Banking Cell (IMBC), set up at the Banks Corporate Office, Mumbai,
 plays an active role in the business on account of raising of
 substantial resources by Indian Corporates. The IMBC now actively
 participates in the loan origination.
 
 Products and Services
 
 After implementation of the Core Banking Solution in its overseas
 operations, the Bank launched various new products and services to meet
 the requirements of diversified groups of customers. New products,
 developed after extensive market research, have found wide
 acceptability with local population.
 
 Technology Upgradation in Overseas Operations
 
 - The number of ATMs at overseas territories and subsidiaries increased
 to 68 (42 onsite and 26 offsite) as on 31st March, 2011 from 55 (36
 onsite and 19 offsite) as on 31st March, 2010.
 
 - Global Treasury Solution was implemented at the Banks operations in
 UK, UAE, Bahamas, Bahrain, Hong Kong, Singapore and Belgium. The Banks
 subsidiary in Uganda has also initiated process for implementation of
 
 Treasury Module as per the requirements of the country of operation.
 
 - Implementation of a Centralized SWIFT activity was completed and made
 operational from the Banks Data Centre in Mumbai.
 
 - Except UK and US Territories, all Territories/Subsidiaries have
 started routing their Swift operations through the SWIFT Cell, Data
 Centre. The XMM application was implemented in the place of SAM and PC
 Connect.
 
 - The Payment Messaging System too was implemented. It is a middleware
 between Core Banking Solution (Finacle) and SWIFT which helps in
 Straight-Through-Processing of incoming and outgoing SWIFT messages
 with Anti Money Laundering check. The same was implemented in all the
 overseas territories/subsidiaries except in UK and USA.
 
 - The Anti Money laundering Erase (Batch mode) was implemented in all
 the overseas centres except, Belgium and USA.
 
 - Anti Money Laundering Online List Matching Solution too was
 implemented at all the centres of the Bank except USA.
 
 E-Banking
 
 - The Bank has made “View based E-Banking” available in its operations
 in Fiji, Oman, Tanzania and UK.
 
 - The Bank has implemented “Transaction-based Internet Banking” in
 Uganda, Botswana, UAE, New Zealand, Kenya, Mauritius and Seychelles.
 
 - The Bank has firmed up its plan to cover all the remaining overseas
 centres under this facility during 2011-12.
 
 Risk Management in Overseas Operations
 
 The Bank has put in place an appropriate risk management system,
 comprising of necessary elements of active Board and senior management
 oversight, adequate policies, procedures and limits, adequate
 management information systems and comprehensive internal control for
 risk identifications, risk measuring, risk monitoring and risk control
 for its overseas operations. The Bank has implemented BASEL II
 guidelines in all the Overseas Territories with effect from 31st March,
 2008 and has adopted Standardised approach for Credit Risk,
 Standardised Duration Method for Market Risk and Basic Indicator
 Approach for Operational Risk.
 
 To prepare for the adoption of the advanced approaches, the Bank has
 developed customized BOB RAM internal Rating Module for its UK and UAE
 territories, covering major portion of the overseas business. In a
 phased manner, the BOB RAM will be introduced in all the other
 territories. The Bank has posted highly skilled and qualified Risk
 Managers in all the major overseas territories, to put in place the
 requisite risk management practices in overseas operations and to
 comply with the extant guidelines of host and home country regulators.
 
 Regulatory Compliance
 
 The compliance structure of the Bank is based on the extant guidelines
 of the home countrys regulator. All the overseas
 
 territories have put in place the centre-specific compliance policies
 consistent with the corporate compliance policy of the Bank. A
 compliance function is being carried out by the designated compliance
 officer in the territory. The Bank scrupulously follows all the Anti
 Money Laundering and Know Your Customers guidelines of the Host and
 Home country regulators.
 
 Treasury Operations
 
 The global economic scenario presented a mixed picture during 2010-11.
 While growth in emerging market economies (EMEs) remained strong, it
 was on an upswing in the US and the Euro areas. However, the sharp
 increase in oil prices during the course of the year as a result of the
 events in the Middle East and North Africa added tremendous uncertainty
 to the pace of global recovery. Coupled with rising prices of food and
 commodity, the spike in oil prices significantly heightened the
 inflationary concerns. Balancing the concerns on twin challenges of
 taming inflation and managing economic growth, the RBI started hiking
 policy rates since March 2010.  During the year 2010-11, the RBI
 cumulatively hiked the repo rate by 175 bps and the reverse repo by 225
 bps, albeit in a calibrated fashion.
 
 The advance estimate of the GDP growth for 2010-11, given by the
 Central Statistical Organisation, Government of India is at 8.6%. The
 benchmark 10 year G-Sec yield moved touching a high of 8.25% and a low
 of 7.37% with an average yield of approximately 7.90% during the year
 under review. Against this backdrop of rise in yields and rate hikes,
 the Bank Treasurys focus was to enhance the overall yield on its SLR
 portfolio. The average yield on Domestic SLR investment portfolio for
 the year was 7.68%. Keeping in view the macro economic situation, the
 Modified Duration of SLR investments under Available for Sale category
 was kept at 2.62 years. During the year, the Bank earned Rs 4,645.83
 crore by way of Interest/Discount earned on Investments, Rs 457.24
 crore as Profit on Sale of Investment and Rs 307.61 crore as Foreign
 Exchange earnings.  The Treasury actively utilised the market movements
 and used the Overnight Index Swaps and INBMK Swaps for hedging and
 trading opportunities. The Treasury offers customized solutions using
 available instruments viz. IRS, CIRS, Forwards & Options to meet
 Interest Rate and Foreign Exchange Risk Mitigation requirements of
 corporate clients. The Treasury actively tried to benefit from the
 arbitrage opportunities available between various asset classes
 including Money market, CBLO, Market Repo, Government Securities and
 resources generated through the USD/INR swaps.
 
 During the year under review, the Treasury mobilized long term
 resources for the Bank through a mix of Upper Tier II and Perpetual
 Bond instruments. The total amount raised was Rs 2,211.50 crore in four
 tranches at the finest terms supported by the Banks strong credit
 story.
 
 Post financial crisis of 2008, the Indian economy showed strong growth
 for a second consecutive year. However, the Industrial production
 slowed down in the second half of 2010-11 impacted by the rising input
 cost pressures. There were robust FII inflows in the first half of the
 financial year 2010-11. Reflecting the
 
 investor confidence, the BSE Sensitive Index touched a high of 21,108
 during the year. However, the equity investors booked profits and there
 was a net FII outflow in the last quarter of 2010- 11 on account of
 events in the Middle East and North Africa, high oil prices and
 continuing inflation. Taking advantage of the market movements, the
 Equity Desk of the Banks Treasury actively churned its portfolio and
 recorded good profits. During the year, the Banks Equity Desks
 turnover increased by more than 60.0% over previous year, and it
 doubled its profit over the corresponding period.
 
 The Foreign Exchange Desk of the Banks Treasury too retained its
 prominence as a key market maker in the Indian Banking Industry. The
 Proprietary trading desk was active in encashing the arbitrage between
 the Futures and OTC markets. The Foreign Exchange Desk was able to
 manage the volatility efficiently with more than 25.0% increase in the
 turnover in both the Inter-Bank and Merchant Desks. The Inter-Bank to
 Merchant Forex turnover ratio for the Bank was 8.28 against Market
 ratio of 2.85.
 
 During the year 2010-11, the Bank inaugurated a new State of the Art
 Dealing Room at Baroda Sun Tower at its Corporate Office in Mumbai.
 Through this new Dealing room, the Bank is well positioned to scale up
 its Treasury Operations in the coming years. The Treasury handles the
 Banks Domestic Treasury Operations and covers activities in various
 markets i.e. Foreign Exchange, Interest Rates, Fixed Income, Equity and
 other alternative assets. The advanced technology platforms are being
 used by the Bank to offer a basket of financial products to its clients
 including Interest Rate and Currency Swaps, Forwards and Options.
 Through the enhanced Automated Dealing System, the Bank is able to
 offer auto generated real time foreign exchange rates to its clients
 through the authorised branches in India.
 
 Under the Business Process Reengineering (BPR), the Bank has
 successfully implemented a Global Treasury Solution across major
 financial centres. The Global Treasury Platform is running smoothly in
 Mumbai, Europe (London and Brussels), Dubai, Bahrain, Singapore,
 Bahamas and Hong Kong. During the year 2010-11, the roll out of the
 Global Treasury Platform was initiated in the Banks New York
 operations.
 
 The Treasury Mid Office monitors market exposures and limits fixed by
 the Banks Board of Directors on real time basis. The
 
 Risk Management measures such as Value at Risk (VaR) is used to measure
 Market Risk on all portfolios. These measures are backed up by the Back
 Testing on risk numbers and Stress Testing of portfolios.
 
 Corporate Social Responsibility (CSR)
 
 Like in business, the Bank aspires to score high on Corporate
 Conscience. As a responsible corporate citizen, it is the vision of the
 Bank to empower the community through socio-economic development of
 underprivileged and weaker sections. In its continued efforts to make a
 difference to the society at large, the Bank further intensified its
 efforts in this direction during the year 2010-11.
 
 The Bank has established Baroda Swarozgar Vikas Sansthan (Baroda
 R-SETI) for imparting training to unemployed youth, free of cost for
 gainful self employment and entrepreneurship skill development which
 help them improve their family economic status and also gives a boost
 to the local economies from where they operate.
 
 So far, 36 such Santhans have been established by the Bank in which
 more than 79,000 young persons have been trained and around 50,000 have
 been gainfully self employed.
 
 The Bank has established 52 Baroda Gramin Paramarsh Kendra for
 knowledge sharing, problem solving and credit counseling for rural
 masses across the country. In order to spread awareness among the rural
 masses on various financial and banking services and to speed up the
 process of financial inclusion, the Bank has also established 14
 Financial literacy and Credit counseling Centres (FLCCs) during the
 year 2010- 11 taking the total number of FLCCs to 18.
 
 Asset Quality Management
 
 Bank of Baroda has rightly earned a reputation for excellence in the
 Asset Quality management. Even during the year 2010- 11, the Bank was
 able to maintain the best asset quality in the Indian banking system by
 smartly and strategically managing its Non Performing Asset (NPA)
 portfolio.
 
 A close monitoring and follow up systems for recovery of NPA together
 with a well-defined mechanism to catch early warning signals to prevent
 slippages has helped the Bank to maintain its NPA at the lowest
 possible levels.
 
 In spite of higher slippages observed in general in the Indian banking
 industry because of continuing adverse effects of economic downturn and
 high volatility in the financial indicators, the Bank could restrict
 its Gross NPA to 1.36% of Gross Advances as at 31st March, 2011 - the
 same level as in the previous year. Even its Net NPA ratio was
 contained at 0.35% as at 31st March, 2011 versus 0.34% as on 31st
 March, 2010.
 
 The Banks outstanding performance in the asset quality management was
 reflected in the modest level of incremental delinquency ratio at 1.09%
 in 2010-11 as against 1.17% in 2009-10. This ratio is measured as
 “Additional Delinquencies as a per cent of the Opening Standard
 Advances of the Bank at the beginning of the year”.
 
 Consistent with its past record, the Bank maintained higher Loan Loss
 or Provision Coverage Ratio against its NPA portfolio than the
 mandatory norm of 70% set by the RBI. The Banks NPA Coverage Ratio as
 on 31st March, 2011 was 74.91% as against 74.90% as on 31st March,
 2010. The Loan Loss or Provision Coverage Ratio taking into account the
 technical write-offs worked out to 85.0% as on 31st March, 2011 as
 against 87.0% as on 31st March, 2010.
 
 The Bank also adopted a strong follow-up mechanism for speedy
 recovery/resolution of its NPAs by expediting the legal action as well
 as through the compromise/OTS route. This strategy yielded the Bank
 Cash Recovery of over Rs 455.49 crore during 2010-11 as against Rs
 383.27 crore during the previous year. This is over and above Rs 189.17
 crore in accounts upgraded to Standard Category during the year under
 review. Furthermore, Cash Recovery from the Prudentially/ Technically
 written off accounts amounted to Rs 272.65 crore during 2010-11.
 
 The Banks experience in effecting speedy recovery in smaller accounts
 with balance outstanding of up to Rs 10 lakh through its special drives
 was highly rewarding. For instance, a Campaign SANKALP-3 launched
 during the year under review resulted in the Cash Recovery of over Rs
 77.78 crore. The Bank also launched special OTS scheme for its SME
 accounts with balance outstanding up to Rs 10 crore, viz. “SME OTS
 2010”.  This scheme was also very successful and resulted in the Cash
 Recovery of over Rs 53.18 crore.
 
 The Banks consistent performance in delivering the best Asset Quality
 in the Indian banking industry is borne out by the table given below.
 
                                                           (Rs. crore)
 
 Asset Category                31st March       31st March 
 (Gross)                             2011             2010
 
 Standard                     2,28,173.03      1,74,736.43
 
 Gross NPA                       3,152.50         2,400.69
 
 Total                        2,31,325.53      1,77,137.12 
 
 Gross NPA is comprising of:
 
 Sub-standard                    1,097.23           894.83
 
 Doubtful                        1,336.64           743.22
 
 Loss                              718.63           762.64
 
 Total Gross NPA                 3,152.50         2,400.69
 
 
 Information Technology
 
 The Bank has adopted a total end-to-end business and IT strategy
 project covering the Banks domestic, overseas and subsidiary
 operations. The key features of the Banks Technology Infrastructure
 are as follows.
 
 - All branches and extension counters of the Banks Indian operations
 are on the Core Banking Solution (CBS) platform. Additionally, during
 the year 2010-11, the CBS was implemented in Banks five Regional Rural
 Banks in record time covering 1,218 branches and three extension
 counters. As regards the Banks international operations, the CBS was
 implemented during the course of the year in New Zealand and Belgium
 territories. In all, 44 branches in thirteen overseas territories and
 28 branches in eight overseas subsidiaries are on the CBS covering
 97.0% of the Banks overseas business. In April 2011, with the
 implementation of CBS in the Banks New York office, the entire
 overseas business of the Bank too was covered under the CBS.
 
 - Moreover, the Banks IT setup has been developed for account opening
 process and transactions, both online and offline, to be carried out
 through the Business Correspondents thus enabling Financial Inclusion.
 The Mobile Van Banking too is launched by the Bank in Gujarat, UP and
 Bihar as a Financial Inclusion initiative.
 
 - The Bank has built the best of technology infrastructure by
 implementing a state-of-the-art Data Centre conforming to the Uptime
 Institute Tier-3 standard and also a Disaster Recovery Site in
 different seismic zones with redundancy built in every single point of
 failure to ensure uninterrupted banking service delivery to customers.
 During the year under review, the Bank successfully migrated its
 existing Data Centre to a new Data Centre in Banks own premises,
 without disrupting the banking operations. Various Green IT initiatives
 are also taken by the Bank in its new Data Centre.
 
 - The Banks Internet Banking facility (Baroda Connect) provides speedy
 and secured facility to transfer funds to self, third party (within the
 Bank) and inter-bank. Other facilities available are online payment of
 Direct and Indirect Taxes and certain State Government Taxes, utility
 bills, rail tickets, online shopping, donation to temples and
 institutional fee payment. Corporates also have the facility of direct
 salary uploads, trade finance. State Tax payments, viz., Maharashtra
 Virtual Treasury, Maharashtra Sales Tax, Tamil Nadu Commercial Tax,
 Gujarat Cyber Treasury (Motor Vehicle Tax) have been enabled during the
 year.  SMS Alerts, RTGS / NEFT transactions are also provided in the
 Banks internet banking portal. The ASBA (Application Supported by
 Blocked Amount) functionality has been provided in Baroda Connect for
 Online subscription to Initial Public Offers and Follow-on Public
 Offers to apply for Equity Shares. Transaction based Internet Banking
 has also been implemented in Uganda, Botswana, New Zealand, UAE, Kenya,
 Mauritius, Seychelles and Fiji providing facilities such as funds
 transfer to self and third party, bill payments, corporate salary
 upload and online
 
 shopping. The view-based internet banking has also been implemented
 overseas in Oman and Tanzania.
 
 - The Bank has implemented a Fraud Management Solution for two factor
 authentication for e-banking transactions in India. The roll out in
 International Territories will synchronize with the roll out of new
 versions of e-banking.
 
 - The SMS Alerts Delivery gateway has been upgraded by the Bank for
 delivering Internet Banking alerts in India, UAE, Botswana, Uganda, New
 Zealand, Kenya, Mauritius and Seychelles. This will be further extended
 to all customers of the Bank shortly.
 
 - Internet Payment Gateway services for debit cards/ credit cards are
 increasingly offered to merchants and internet shoppers as a safe and
 secure channel for online purchases.
 
 - The Bank has made operational an ATM Switch in India, UAE, Oman,
 Mauritius, Fiji, Tanzania, Botswana, T&T and New Zealand. An
 integration with Paymark Switch in New Zealand National, Linx Switch
 Trinidad & Tobago, FIS switch in UK is planned to provide convenience
 to customers by increasing delivery points through ATMs covered under
 these switches. As a customer centric initiative, the Bank has
 implemented multiple accounts being linked to a single Debit Card
 (Verified by VISA, CVV2) and enabled e-Tax Payments through the ATMs.
 The Mobile ATMs have also been launched in Ahmedabad, Pune, Lucknow and
 New Delhi.
 
 - Mobile Banking - BARODA M-CONNECT - has been implemented on a pilot
 basis in January 2011 and provides various facilities to customers,
 viz., Balance Enquiry, Mini Statement, Linking of Multiple Accounts,
 Fund Transfer, Request to the Bank, Bill Payments, Ticket Booking,
 Shopping, Feedback/ Complaints etc.
 
 - Also, the Retail Depository Services are made available to the Banks
 customers. With a centralized depository application, branches are
 equipped to provide depository services for both the NSDL as well as
 CDSL.
 
 - The Bank has launched an Online Trading System for Institutional
 Trading. The Online Trading for Retail is in its final stage of
 implementation and will be launched during the year 2011-12.
 
 - The Banks Cash Management System is a full-function web-enabled cash
 management solution offered to the Banks customers, covering services
 like Receipt Management (Collections), Payment Management and Invoice
 Management (Receivable and Payable Management).
 
 - The CBS branches of the Bank are enabled for interbank remittances
 through RTGS and NEFT The RTGS and NEFT have also been interfaced with
 the Banks internet banking portal. The Straight-Through-Processing of
 NEFT inward messages have been implemented in July 2010.
 
 - The SWIFT facility for worldwide inter-bank financial communication
 is provided at the Banks Foreign Exchange Authorised Branches in India
 as also in overseas territories.
 
 - The Bank has implemented a Payment Messaging Solution (PMS) in its 20
 overseas territories and also in all authorised branches in India. The
 PMS facilitates validation and formatting of SWIFT messages generated
 from the CBS as per the SWIFT standards, and also goes through the AML
 check.
 
 - The Bank has also implemented a new Credit Card Management System.
 The SMSes for all types of transactions viz., purchases, e-com
 transaction etc. are generated online and e-statements are being sent
 to customers.
 
 - The Bank has implemented an Integrated Global Treasury Solution in
 its territories like UK, UAE, Bahamas, Bahrain, Hong Kong, Singapore,
 Belgium and in India, reducing the cost of operations and better funds
 management.
 
 - For improving the Banks service delivery, the Back Office functions
 have been centralised at City Back Offices and five Regional Back
 Offices (RBOs) have been set up at Baroda, Jaipur, Lucknow, Bhopal and
 Coimbatore. The roll out of Personalised Cheque Books has been
 implemented in the Banks five RBOs. The Bank has also developed
 modules for the centralised FCNR operations.
 
 - The Bank has implemented the Automated Cheque Processing Centre
 (Inward & Outward) in February 2011 in its Service Branch in Mumbai on
 a pilot basis, as a part of the Business Process Re-engineering
 project.
 
 - For regulatory compliance, the Anti Money Laundering (AML) has been
 implemented in India and 20 overseas territories. The Bank has also
 implemented Risk Management solution.
 
 - The Enterprise-wide GL Solution (EWGL) has been implemented by the
 Bank on 13th December 2010 in all of its CBS branches (domestic &
 overseas). This provides variety of inputs to the Bank for strategic
 decision making in business development and also generates enterprise
 wide consolidated reports.
 
 - The Centralised Payroll, Salary module, e-TDS module and Leave Module
 have been implemented for all the Banks offices in India.
 
 - The Human Resource Networking for Employees Service has been
 implemented with the objective of creating a central database of Bank
 employees for facilitating decision-making, promotion and selection
 exercise as also for automating other HR processes.
 
 - The Solar Power Generation System (SPGS) was implemented by the Bank
 during the year in some of its rural branches to ensure uninterrupted
 banking services to customers in rural branches. The SPGS is expected
 to provide an alternate source of energy through the UPS at branches
 that face acute power shortage or have large load shedding.
 
 - A robust Information Security Management System has been put in place
 by the Bank to protect the technology against security threat.
 
 - Other major projects of the Bank like Customer Relationship
 Management, Data Warehouse/OFSA and Knowledge Management commenced
 during the year under review.  While some phases of these projects are
 completed, some phases are still under implementation.
 
 Future Plans in IT
 
 - The Bank has plans for consolidation of IT infrastructure by way of
 Server Virtualisation, Storage Virtualisation, Backup Consolidation,
 Desktop Virtualisation for more efficient utilisation of resources and
 to refresh and upgrade the existing IT infrastructure.
 
 - The Bank also proposes to upgrade the ATM switch to handle increased
 volume of ATM transactions and more ATMs.
 
 - The Bank has planned a Contact Centre Solution implementation to
 enhance customer experience.
 
 - The Bank has planned additional customer-centric initiatives through
 internet banking, ATM and other delivery channels to make possible
 seamless and efficient services across multiple channels.
 
 - As a part of the Banks Business Process Re-engineering exercise, it
 has strategically planned to centralise certain back office functions
 of the branches so as to facilitate conversion of branches into sales
 and service outlets.
 
 - Five more Regional Back Offices at Delhi, Pune, Kokata, Jamshedpur
 and Mumbai have been planned to be set up during 2011-12.
 
 E-business
 
 The Banks E-business department provides for different types of
 Alternate Delivery Channels (ADCs) such as ATMs, Internet Banking
 (Baroda Connect), RTGS/NEFT, Phone Banking, Internet Payment Gateway
 (IPG) etc. In addition to this, the Department looks after Depository
 Services, Cash Management Services, NRI Services and Sale of Gold
 Coins. Following are the highlights of the performance of various
 sections under the E-Business Department during 2010-11.
 
 ATM/DEBIT Card Operations
 
 Particulars                               31/03/2010        31/03/2011
 
 No. of ATMs operationalised                    1,315             1,561
 
 No. of Debit Cards Issued 4                5.95 lakh        62.71 lakh
 
 
 New Initiatives in 2010-11
 
 a) Payment of taxes through ATMs.
 
 b) Cash withdrawal limit increased to Rs 25,000 per day from Rs 15,000
 per day.
 
 Baroda Connect (Internet Banking)
 
 Particulars            31/03/2010         31/03/2011
 
 No. of Users             3,66,605           5,73,575
 
 No. of A/cs. Linked     12,91,847          21,90,700
 
 
 New Initiatives in 2010-11
 
 a) Online subscription of IPO/FPO (ASBA) was enabled.
 
 b) Daily transaction limits were increased for the retail users.
 
 Phone Banking
 
 a) The Bank introduced this facility on 19th March, 2009.
 
 b) The number of users registered under this facility as on 31st March,
 2011 was 4,13,234 indicating a new addition of 1,70,464 users during
 2010-11.
 
 c) On this facility, the per day average hits were more than 600.
 
 
 Baroda RTGS/NEFT
 
 Particulars                 2009-10                  2010-11
                        RTGS         NEFT         RTGS         NEFT
 
 No. of Inward      8,85,527    15,83,158    13,98,612    34,24,515
 Transactions
 
 No. of Outward    12,93,970     6,61,923    19,25,969    14,88,661
 Transactions
 
 Avg Transactions 
 per                   4,774        7,674        5,793       17,035
 day (Inward)
 
 Avg Transactions 
 per                   6,516        3,105        7,235        8,015
 day (Outward)
 
 
 Baroda Cash Management Services
 
 - During financial year 2010-11, the total number of transactions in
 BCMS were 10,08,000 with total turnover of Rs 11,027 crore.
 
 - It is proposed to extend these services to 100 more centres in a
 phased manner.
 
 Non-Resident Indian (NRI) Services
 
 - Total NRI Deposits increased to Rs 17,578 crore as on 31st March,
 2011 from the level of Rs 16,792 crore as on 31st March, 2010,
 reflecting a modest growth of 4.68% during the year.
 
 - This year also the Bank participated in Pravasi Bhartiya Divas-2011
 in January 2011 at New Delhi.
 
 Baroda e-Gateway (Internet Payment Gateway)
 
 - As on 31st March, 2011, 52 Merchants were registered for this
 facility and total turnover was Rs 11.73 crore.
 
 Sale of Gold Coins
 
 - The Bank started selling the gold coins since October 2007.
 
 - At present, gold coins in denomination of 2gm, 4gm, 5gm, 8gm, 10gm
 and 20gm are being sold. During the year 2010- 11, 1,08,743 gold coins
 weighing 730.01 kg were sold.
 
 - A profit of Rs 9.23 crore was earned from this activity during the
 year 2010-11.
 
 New Products to be Launched Shortly
 
 1.  Extension of Mobile Banking
 
 2.  Pre-paid Cards
 
 3.  Establishing Contact Centres at Baroda and Lucknow.
 
 4.  Launch of different variants of Debit Cards:
 
     a) Platinum Debit Card
 
     b) Maestro Debit Card
 
     c) Combi Gold Debit Card
 
     d) Debit Cards for Biometric ATMs.
 
 As a customer centric initiative, the contact centres (Call Centres)
 are being established at Baroda and Lucknow.
 
 Human Resources
 
 Human Resource strategies have been a key component of the Banks
 overall efforts for business transformation and augmenting performance
 of its operational units. The prime objective of the HR function is to
 harness the employee potential for serving the customers better. The
 Bank is endowed with a competent and highly motivated employee base of
 around 39,385 who are engaged in handling the mammoth business
 operations of the Bank.
 
 Some of the major HR initiatives taken by the Bank during 2010-11 were
 as follows.
 
 Implementation of HR Technology
 
 The Bank has created a very comprehensive HR technology platform
 covering HRM, Training, Payroll & Leave modules enabling automation of
 various functionalities. Various other modules too were continued to be
 implemented during the year.
 
 HR Initiatives in Capability Building
 
 Substantial training and developmental activities were carried out
 during 2010-11, which included comprehensive grooming programmes in the
 area of Credit, Forex Dealings, Branch Management, Planning, Risk
 Management, etc. besides all- round development and grooming of young
 officers and new recruits.
 
 The Bank conducted 1,544 training programmes in-house (through its
 network of 12 Training Centres across the country, one IT training
 center and an Apex Training College at Ahmedabad) and thereby trained
 35,843 people during the year. Besides, the Bank also sent around 1,509
 employees for undergoing training in various reputed external training
 institutes of the country and even abroad.
 
 Leadership Development
 
 Taking into account the critical need for building leadership
 competencies in people, the Bank has launched a comprehensive
 leadership development program Project UDAAN covering Branch Heads of
 all Urban and Metro Branches and all the Assistant General Managers and
 Deputy General Managers with the objective of creating leaders for the
 future. Such a massive and comprehensive leadership development effort
 is
 
 unparalleled in the industry and first of its kind for an Indian
 state-owned Bank.
 
 Recruitment Drive
 
 Various recruitment exercises were undertaken to address the emerging
 manpower requirements in the Bank. Recruitment of Specialist
 agricultural officers, probationary officers, recruitment of young MBAs
 direct from the campuses of renowned Business Schools were initiated in
 large numbers to meet the needs of the Bank, both in terms of
 replacements for normal attrition and factoring in the business growth
 needs. The Bank recruited 1,871 Officers in various Grades/Scales (both
 Generalists & Specialists), 1,131 Clerks and 632 Subordinate staff
 members, thereby inducting a total of 3,634 new employees in the Bank
 during the period 2010-11. The recruitment process would continue in
 the year 2011-12 also with various recruitment projects underway for
 filling up almost 2,000 posts of officers and 2,000 posts of clerks.
 
 Framework for Career Progression
 
 Special efforts were made during the year under review to fulfill the
 growing aspirations of the employees for faster career progression,
 thereby, motivating employees for higher productivity. Keeping this in
 view, a large number of promotion exercises were undertaken during the
 year 2010-11, the result of which are given below:
 
 I Sub-Staff to Clerk                               302
 
 Clerk to Officer                                   519
 
 JM-I to MM-II (Officer to Manager)                1001
 
 MM-II to MM-III (Manager to Sr Manager)            971
 
 MM-III to SM-IV (Sr. Manager to Chief Manager)     240
 
 SM-IV to SM-V (Chief Manager to Asstt. Gen.         70
 Manager)  
 
 SM-V to TEG-VI (Asstt. Gen. Manager to Dy.          33
 Gen. Manager)
 
 TEG-VI to TEG-VII (Dy. Gen. Manager to General      15
 Manager)
 
 
 Review of HR Policies and Systems
 
 A focused review of all major HR policies and schemes was undertaken
 during the year 2010-11 in order to bring about more employee friendly
 rules, ease of processes and more transparency.
 
 Special Thrust on Development of SC/ST/Other Backward Communities
 
 The Bank is committed to the constitutional safeguards and social
 objectives for development and welfare of persons belonging to SCs, STs
 and other backward classes in society.  The Bank is one of those banks
 in the entire banking industry that have the highest number of
 employees belonging to SCs and STs, which itself shows the commitment
 of the Bank towards their development and upliftment. Some of the
 highlights of the Banks efforts for development and welfare of people
 belonging to SCs and STs are enumerated as under.
 
 Reservation in Employment
 
 The Bank observes all guidelines stipulated by the Government of India
 for reservation of posts in employment in All India recruitment and
 local recruitment. Around 15.0% posts are reserved for SCs and 7.5%
 posts are reserved for STs in all India recruitments. For other
 recruitments made on regional basis, appropriate percentage prescribed
 for various States is being observed.
 
 Special efforts are made like offering pre-recruitment orientation
 training to SC/ST applicants for recruitment in the Bank. Relaxation in
 age limit and qualifications are given and interviews of SC/ST
 candidates are taken on relaxed standards in order to ensure that
 appointment of candidates to the reserved posts happens. In the
 Interview Panel for recruitment, a member belonging to SC/ST is
 invariably associated. Candidates belonging to SC/ST, who are called
 for interview, are reimbursed traveling expenses. In addition to
 providing reservation in employment, the Bank is also providing
 reservation and other enabling mechanisms in career growth and
 promotions for SC and ST employees as per the guidelines in vogue.
 Pre-promotion training before participating in promotion exercises is
 also provided. Around 10.0% of the available residential accommodation
 of the Bank is also reserved for SC/ST candidates.
 
 The staff strength and representation of SCs and STs as of 31st March
 2011 is as under.
 
 Cadre         Total       SC       SC %       ST        ST%
 
 Officers     15,759    2,743      17.41    1,024       6.50
 
 Clerks       15,628    2,317      14.83      943       6.03
 
 Substaff      7,998    2,834      35.43      724       9.05
 
 Total        39,385    7,894      20.04    2,691       6.83
 
 
 SC/ST Cell
 
 An exclusive SC/ST Cell in the Bank has been set up to monitor the
 reservation and other enabling provisions for SC/ST employees in the
 Bank. An Executive in the rank of General Manager is appointed as Chief
 Liaison Officer for SC/
 
 ST employees who ensures compliance of various guidelines pertaining to
 the SC/ST employees. A Liaison Officer for SC/ ST has been appointed in
 each Zone of the Bank who takes care of all matters and grievance
 redressal of SC/ST employees of that Zone.
 
 Meeting with SC/ST Welfare Association
 
 With a view to have direct dialogue and review of reservation and other
 special provisions for SC and ST, the Bank holds quarterly meetings
 with the representatives of SC/ST Welfare Association of our employees
 in the Bank. The Banks Chairman and Managing Director and Senior
 Executives including the Chief Liaison Officer for SC/ST participate in
 the meeting.
 
 Bharat Ratna Dr. Babasaheb Ambedkar Memorial Trust
 
 The Bank established the “Bharat Ratna Dr. Babasaheb Ambedkar Memorial
 Trust” in 1991 for promoting welfare activities for the benefit of
 SC/ST employees and their family members. Apart from scholarships to
 children of employees belonging to SC/ST, the Trust also provides
 scholarship to needy students belonging to SC/ST community, in general,
 in major centres of the country.
 
 Visit of National Commission for Scheduled Castes
 
 The National Commission for Scheduled Castes visited the Bank on 17th
 March, 2011, had discussions and interactions and examined the level of
 implementation of policies and programmes. The suggestions and guidance
 of the Commission are being scrupulously observed by the Bank.
 
 Marketing
 
 During the year 2010-11, the Bank focused on coming up with a
 breakthrough marketing communication path. In view of the competitive
 environment and multiple messages, the advertisements of different
 banks get cluttered, which results in lack of differentiation in the
 communication. To conquer the cut-throat environment and capture the
 mind space of viewers, the Banks marketing communication focused on
 enhancing the recall value of the brand, thereby, providing absolute
 support to the field staff.
 
 Creation of Brand Recall
 
 The year 2010-11 saw the launch of the “Reinforcement Campaign II”
 using the Banks already recognized sub-brand “Baroda Next - State of
 the Art - Straight from the Heart”. The twin objectives of this
 campaign were to remind the market of the product and services of the
 Bank, reinforced with a robust technological infrastructure for
 efficient and effective delivery and reach, and extend the scope of
 “Baroda Next” to a younger and tech savvy generation. The Bank, as a
 part of its strategy created 360 degree campaign consisting of
 electronic, print, on-line, out-of-home, on-ground & in-branch
 activities which supported the Banks drive to make more customers
 using its retail products (Saving Bank/Current Account/Retail Loans)
 strongly supported by the alternative electronic delivery channels.
 
 The new “Reinforcement Campaign II” was innovatively designed using
 different forms of communication viz. animated characters weaving
 through real life sequences, attractively depicted with illustrations
 and pictorial presentations. The Bank felt that there was a need to
 move away from the regular photographic imagery of products and
 satisfied customers. The Bank came up with a revolutionary, eye
 catching visual element of a stick-man figure which was accepted by
 its stakeholders and was highly appreciated in advertising and banking
 industry.
 
 The success of the campaign, in terms of reach, impact and exposure was
 corroborated by the unaided feedback emanating from various target
 segments.
 
 Product Support
 
 During the year 2010-11, a number of product promotion campaigns were
 conducted to promote Retail Loans, Current Deposits, Savings Deposits,
 SME products, NRI products and Sale of Gold Coins. A combination of all
 media vehicles (print, electronic and OOH media) was used to support
 the sales effort of field-level units. Their efforts were also aided by
 suitable in- branch publicity through display of banners, posters,
 leaflets and promotional events at the ground level.
 
 Focus on Selling
 
 The City Sales Offices (CSO), along with Retail Loan Factory and SME
 Loan Factory, are envisaged to support the efforts of the branches in
 improving the sales performance under various product categories. As on
 31st March, 2011, there are 26 CSOs operational across the country.
 
 Other Marketing Endeavours
 
 Various on-ground activities undertaken by the Marketing Division
 greatly helped to broaden the Banks competitive edge by improving
 visibility, image, prestige and credibility.  The Bank organized and
 participated in many promotional
 
 events. Some of the major events where Banks branding was enhanced
 included Pravasi Bharti - New Delhi, Vibrant Gujarat Summit 2011,
 Mumbai Marathon, Polo Tournament, Vadodara Marathon, Mint, Annual
 Banking Conclave - “Banking & Beyond - New Challenges Facing India
 Financial System”.  The out-of-home media was also well leveraged to be
 on the radar of customers constantly.
 
 Out of the Box Thinking
 
 - The Bank came up with a completely innovative idea by developing a
 micro site to aid the “Reinforcement Campaign II”. The campaign
 objectives were to promote the usage of alternate delivery channels
 i.e. Internet Banking & ATMs and, also, to enhance the Banks image as
 a tech savvy bank.
 
 - This medium is now being continuously used to promote lead generation
 for Retail Loan and Saving Bank campaigns.
 
 - The animated Stick man figure has slowly evolved to capture the
 imagination of both the Banks internal and external stakeholders as
 the first of its kind in the Banking segment.
 
 Awards and Industry Recognition for Bank of Baroda
 
 The Bank has received several awards during 2010-11, for its consistent
 outstanding and all-round performance (both business & financial),
 superior management, dedication to excellence and contribution to rural
 economy and financial inclusion.
 
 Given below are a few select awards won by the Bank during the course
 of 2010-11.
 
 - Business Standard- Best Banker Award given by Dr Manmohan Singh to
 the Banks Chairman & Managing Director at New Delhi.
 
 - Best SME Business Start-up Scheme Award in the Banker Middle East
 Product Awards 2011 ceremony held on 23rd March, 2011 at Emirates
 Towers in Dubai.
 
 - Skoch Financial Inclusion Award- 2011
 
 - President Zuma Award- For outstanding contribution to advancement of
 South Africa. - 9th Jan 2011 at Durban
 
 - IBA- Banking Technology Award 2011 - Runner UP- Award given by Dr APJ
 Abdul Kalam.
 
 - Consumer Super Brands Award for one of the top brands of Indian
 Status- by Consumer Super brands Volume 3- January 2010
 
 - DSIJ PSU Award for Excellence in performance and contribution to the
 Indian economy by the PSUs - by Dalal Street Investment Journal - 6th
 April 2010
 
 - Silver Award by Dainik Bhaskar group (DNA) under its Annual India
 Pride Award 2010
 
 - Business India - Best Bank Award- 2010 - 5th October 2010
 
 - National Award 2010 - for Excellence in the field of Khadi and
 Village Industries Central Zone for PMEGP.
 
 - Bank of the Year 2010 (for India) by the Banker Magazine UK- London
 
 - ABCI- Silver- Corporate Social Responsibility Column (Bobmaitri)
 
 - ABCI- Silver- Bilingual Publication (Bobmaitri)
 
 - ABCI- Silver- Indian Language Publications - Akshayyam
 
 - My FM Stars of the Industry Brand Leadership Award 2010
 
 Premises Re-Engineering and Ambience Enhancement
 
 During 2010-11, the Bank made operational its second corporate building
 located in Bandra-Kurla Complex Mumbai that was constructed and fitted
 with latest gadgets and systems and with energy-efficient apparatus,
 christened as “Baroda Sun Tower. Various important departments of the
 Bank like Treasury Operations, Project Office, Data Center, E Business,
 and BPR team moved to this new location along with some other support
 departments during the year
 
 Additionally, the Lucknow Zonal Office premises were handed over to the
 Banks UPU Zone. The Zonal Office (UPU), Regional Office (Lucknow) and
 Zonal Inspection Centre Lucknow occupied the premises in May/June 2010.
 
 Similarly, the premises for Baroda Swarojgar Vikas Sansthan (BSVS) at
 Pantnagar has been completed and handed over to the UP Zone. The
 premises for branch office and currency chest at Vishva Karma
 Industrial Area (VKI) Jaipur were also completedl and handed over to
 the Banks Rajasthan Zone.
 
 Moreover, the Auditorium, with seating capacity of 1,000 plus seats, at
 Vadodara is almost complete and formalities for obtaining Occupation
 Certificate are under way.
 
 Around 15 branches of the erstwhile Memon Co-operative Bank Ltd. in
 Mumbai taken over by the Bank during 2010-11 were remodeled,
 refurbished and renovated to bring them at par with the branches of the
 Bank in Mumbai. During the year under review, 120 branches were
 sanctioned for refurbishment by Estate Management Department over and
 above the branches sanctioned by the Zones for refurbishment.
 
 Other Initiatives in Estate Management
 
 In tune with its philosophy to use the best technology for saving power
 and reducing expenditure, the Bank installed the Variable Air Volume
 (VAV) technology and Air balancing system in the Air Handling Units of
 the Heating Ventilation and Air Conditioning (HVAC) system at the
 Baroda Sun Tower (BST) situated at Bandra Kurla Complex (BKC), Mumbai.
 In the Baroda Corporate Centre (BCC) situated at Bandra Kurla Complex
 (BKC), Mumbai, sewerage water was passed through a Sewerage Treatment
 Plant (STP) and several litre of cleaned water was put to alternative
 use like gardening etc.
 
 In the canteens at BCC and BST, the Bank introduced a gas- based
 cooking system, instead of an electric power based cooking system and
 saved huge amount of electrical energy.  Similarly the flow of water
 from various taps at BCC is monitored and the use is reduced to the
 minimum necessary, thereby saving substantial amount of potable water
 every day.
 
 The Bank installed light sensors on all the floors and solar lighting
 and windmill at the Baroda Sun Tower, BKC Mumbai to save on electricity
 expenses. The process of energy audit at all corporate offices in
 Mumbai was also initiated for maximising energy efficiency.
 
 Projects under Implementation
 
 - Commercial complex at Mylapore for Zonal Office and a branch are in
 the advanced stage of completion.
 
 - Residential complex for constructing 29 flats for Executives and
 Officers at Cenotaph Road, Chennai is in progress.
 
 - Construction of the residential complex at Janakpuri and East of
 Kailash, New Delhi has commenced operation.
 
 - The administrative office and residential complex at Ghod Dod Road
 Surat are also in the advanced stage of completion.
 
 - The work for administrative office and residential complex at
 Jamshedpur is in progress
 
 Future Plans for Estate Management
 
 To provide residential accommodation to the transferred officers in
 Mumbai and to take benefit of the State Governments policy on
 redevelopment of properties, the Bank has decided
 
 to redevelop Bhandup staff quarters building and construct about 200
 flats and also initiate redevelopment process for the dilapidated
 Jogeshwari staff quarters to construct a building for residential and
 commercial use.
 
 The renovation of Bank of Baroda Institute of Information Technology
 (BOBIIT) Centre at Gandhinagar is also on cards so as to make optimum
 use of the available space at the centre.  Renovation and face-lifting
 of Mumbai Main Office (MMO) has also begun along with the facelift for
 Parliament Street premises at New Delhi.
 
 In tune with the Banks policy to have its administrative offices in
 owned premises, the Bank has purchased plot of land at Jaipur and
 Indore for construction of commercial building. The Bank has also
 initiated process to acquire a plot of land at New Raipur in the State
 of Chhatisgarh for commercial purpose.
 
 The BCC Mumbai started functioning almost ten years back with a view to
 satisfy the needs of a span of a decade or so. Now, it has become
 necessary to redesign the seating arrangement and layout at BCC so as
 to accommodate the increased staff strength in all the departments in
 this building. Moreover, it has become necessary to consider a face
 lift of the Top Management floors and the Ground floor of BCC Mumbai so
 as to enhance the brand image of the Bank as Indias International
 Bank.
 
 Branch Network
 
 Given below is the information on the Banks brick and mortar
 distribution channels as on 31st March, 2011, which are observed to be
 closer to common customers as compared to the E-Banking channels, which
 are generally preferred by the tech savvy urban masses.
 
 Area Classification    Number of        % Share in
     (India)            Branches           Total
 
 Metro                    730               22
 
 Urban                    631               19
 
 Semi-urban               832               24
 
 Rural                  1,171               35
 
 Total                  3,364              100
 
 Overseas                  54               --
 
 
 Domestic Subsidiaries and Associates
 
 The performance of “Subsidiaries, Joint Venture & Associates” of Bank
 of Baroda was satisfactory and in line with the expectations during
 2010-11.
 
 The BOBCARDS Limited has turned around and made profits during the year
 under review. A Memorandum of Understanding (MoU) was signed on 15th
 December 2010 by Bank of Baroda, Bobcards Ltd. and BBVA (Banco Bilbao
 Vizcaya Argentaria), a leading international Bank, headquartered in
 Madrid, Spain to form a joint venture credit card business. Upon
 regulatory approval, the agreement between the entities will allow BBVA
 to acquire 51.0% stake in the existing credit card subsidiary of Bank
 of Baroda.
 
 The BOB Capital Markets Ltd. has been activated by appointing a
 professional CEO and recruiting a professional team. The
 
 focus is on Debt Syndication, Private Equity Syndication and marketing
 activities. The company commenced institutional broking business in
 October 2009 and will be commencing retail broking shortly.
 
 The Baroda Pioneer Asset Management Company Ltd. is in its third year
 of operation. The Company has launched five new products during 2010-11
 - Baroda Pioneer Infrastructure Fund, Baroda Pioneer Short Term Bond
 Fund, Baroda Pioneer PSU Equity Fund, Baroda Pioneer FMP 90 days Series
 I and Baroda Pioneer FMP 380 days Series I.
 
 The IndiaFirst Life Insurance Company Ltd., a joint venture company,
 has received an overwhelming response from the Banks customers across
 the country making the fastest ever insurance company to reach Rs 100
 crore premium collections in the first 100 days of its operations. The
 IndiaFirst is the first company to cross New Business Premium of Rs 202
 crore in its first year of operations. With Rs 703 crore of new
 business in 2010-11 and Rs 200 crore in the four and a half months of
 2009-10, IndiaFirst crossed Rs 900 crore mark of the total new business
 in exactly 500 days of commencement of its business operations on 16th
 November 2009.
 
                                                          (Rs. lakh)
 
 Entity (with date of                    Owned
                           Country                      Total Assets
 registration)                           Funds
 
 BOB Capital Market         India      12,257.34          13,076.38
 Ltd., 11 March, 1996
 
 BOBCARDS Ltd., 29          India      11,343.65          19,070.11
 Sept., 1994
 
 Associate Baroda
 Pioneer Asset Mgmt         India       4,933.81           7,362.97
 Co. Ltd., 5 Nov., 1992
 
 IndiaFirst Life Insurance  India      33,826.93        1,68,079.07
 Co. Ltd., 19 June, 2008
 
 Nainital Bank Ltd., 31     India      32,298.84        3,29,206.83
 July, 1922 
 
 
 Entity (with date of
 registration)                 Net Profit        Offices      Staff
 
 BOB Capital Market
 Ltd., 11 March, 1996            406.30              1          27
 
 BOBCARDS Ltd., 29
 Sept, 1994                    1,026.91             34         117
 
 Associate Baroda
 Pioneer Asset Mgmt           -1,538.37              1          59
 Co. Ltd., 5 Nov., 1992
 
 IndiaFirst Life Insurance    -6,475.25             13       1,181    
 Co. Ltd., 19 June, 2008
 
 Nainital Bank Ltd., 31        4,568.76            101         816
 July, 1922
 
 
 Implementation of Official Language (OL) Policy
 
 During the year 2010-11, the Bank made significant progress in
 promoting and propagating the use of Official Language and ensured
 compliance of various other statutory requirements
 
 framed under OL Act/OL Rules. The Bank could achieve all major targets
 set by the Government of India under its Annual Programme. In
 recognition of the Banks outstanding performance, the Bank was
 appreciated at various levels.
 
 The Town Official Language Implementation Committees functioning at
 Jaipur and Baroda under the convenorship of the Bank have discharged
 their responsibilities excellently and provided suitable guidance to
 their member Banks. Both the committees were awarded first prize by the
 Government of India for their outstanding performance and functioning.
 Besides, our Zonal Office, Jaipur and New Delhi were awarded with First
 Prize and Zonal Office Kolkata was awarded with second prize by the
 respective Regional OL. Implementation office, Ministry of Home Affairs
 for implementation of OL. Policy of Government of India in their area
 of operations.
 
 The Bank successfully completed more than two years of computer
 training programme on use of Hindi based Unicode fonts for their
 employees with a view to promote use of Hindi in day-to-day Banking.
 During the year 2010-11, more than 550 employees were trained at the
 Banks Corporate Office apart from the training imparted by various
 other administrative offices across the country.
 
 The Third Sub-Committee of Parliament on Official Language visited the
 Banks Kasuli branch at the Regional Office, Mehsana, at the Zonal
 Office, Kolkata and the Kottayam branch (Kerala Region) and appreciated
 the efforts undertaken by the Bank in the area of Official Language
 Implementation.
 
 The Bank was awarded with Second Prize in linguistic Region B and
 Fourth Prize in Linguistic Region A by the RBI under the “RBI Rajbhasha
 Shield” competition.
 
 The Banks in-house Hindi magazine “Akshayyam” was awarded by the ABCI,
 Mumbai with Silver prize under the Indian Language Publication
 category. The Bank has launched Baroda Hindi.Com E-bulletin with a view
 to promote the use of Hindi through technology.
 
 The members of the Banks Top Management regularly give interviews in
 Hindi on Radio and various TV channels to reach a large audience of
 investors, analysts and also to promote financial literacy.
 
 Board of Directors
 
 Shri Ajay Mathur was nominated as part time non-official director with
 effect from 5th May, 2010 by the Central Government u/s 9 (3) (g) of
 The Banking Companies (Acquisition and Transfer of Undertakings) Act,
 1970/1980 for a period of three years or until further orders,
 whichever is earlier.
 
 Shri R. Gandhi was nominated as a Director with effect from 30th July,
 2010 by the Central Government u/s 9 (3) (c) of the Banking Companies
 (Acquisition and Transfer of Undertakings) Act, 1970/1980 to hold the
 post until further orders. He was nominated as RBI nominee Director in
 place of Shri A.  Somasundaram, who ceased to be the Director with
 effect from 30th July, 2010.
 
 Shri Satya Dev Tripathi was nominated as part-time non- official
 Director with effect from 31st August, 2010 by the Central Government
 u/s 9 (3) (h) and (3-A) of The Banking Companies (Acquisition and
 Transfer of Undertakings) Act, 1970/1980 for a period of three years or
 until further orders, whichever is earlier.
 
 Shri V. B. Chavan was nominated as Officer Employee Director with
 effect from 11th March, 2011 by the Central Government u/s 9 (3) (f) of
 the Banking Companies (Acquisition and Transfer of Undertakings) Act,
 1970/1980 for a period of three years or until he ceases to be an
 officer of Bank of Baroda or until further orders, whichever is
 earlier.
 
 Shri Milind N. Nadkarni, appointed as a Workmen Employee Director with
 effect from 1st May, 2007 by the Central Government u/s 9 (3) (e) of
 the Banking Companies (Acquisition and Transfer of Undertakings) Act,
 1970, ceased to be Director with effect from 1st May, 2010, on
 completion of his term.
 
 Dr. Atul Agarwal nominated as a part time non-official Director with
 effect from 23rd November, 2007 by the Central Government u/s 9 (3) (h)
 of The Banking Companies (Acquisition and Transfer of Undertakings)
 Act, 1970, ceased to be Director with effect from 23rd November, 2010,
 on completion of his term.
 
 Shri Ranjit Kumar Chatterjee nominated as Officer Employee Director
 with effect from 20th December, 2007, by the Central Government u/s 9
 (3) (f) of the Banking Companies (Acquisition and Transfer of
 Undertakings) Act, 1970, ceased to be Director with effect from 20th
 December, 2010, on completion of his term.
 
 Directors Responsibility Statement
 
 The Directors confirm that in the preparation of the annual accounts
 for the year ended March 31, 2011:
 
 - The applicable accounting standards have been followed along with
 proper explanation relating to material departures, if any;
 
 - The accounting policies framed in accordance with the guidelines of
 the Reserve Bank of India, were consistently applied.
 
 - Reasonable and prudent judgment and estimates were made so as to give
 true and fair view of the state of affairs of the Bank at the end of
 financial year and of the profit of the Bank for the year ended on
 March 31, 2011;
 
 - Proper and sufficient care was taken for the maintenance of adequate
 accounting records in accordance with the provisions of the applicable
 laws governing Banks in India; and
 
 - The accounts have been prepared on a going concern basis.
 
 Acknowledgement
 
 The Directors express their sincere thanks to the Government of India,
 Reserve Bank of India, Securities and Exchange Board of India, other
 regulatory authorities, various financial institutions, banks and
 correspondents in India and abroad for their valuable guidance and
 support.
 
 The Directors acknowledge with appreciation the assistance and
 cooperation extended by all stakeholders of the Bank like customers,
 shareholders and well wishers in India and abroad.
 
 The Directors place on record deep appreciation for the hard work and
 dedication of the members of the Banks staff at different levels,
 which enabled the Bank to record high quality consistent growth year
 after year despite economic challenges and consolidate its position as
 one of the premier banks in the country.
 
 For and on behalf of the Board of Directors,
 
                                                         M. D. Mallya
 
                                       Chairman and Managing Director