Overseas Business Operations extend across 24 countries through 97 Offices

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1 Bank of Baroda: Banking on Consistent Leadership Performance Analysis: Q3 & Apr-Dec, (FY13) Dr Rupa Rege Nitsure Chief Economist February 4, 2013

2 Bank of Baroda: Key strengths Bank of Baroda is a 104 years old State-owned Bank with modern & contemporary personality, offering banking products and services to Large Industrial, SME, Retail & Agricultural customers across India and 24 other countries. Uninterrupted Record in Profit-making and Dividend Payment Pioneer in many Customer-Centric Initiatives First PSB to receive Corporate Governance Rating (CGR-2) A well-accepted & recognised Brand in Indian banking industry Overseas Business Operations extend across 24 countries through 97 Offices Relatively Strong Presence in Progressive States like Gujarat & Maharashtra Modern & Contemporary Personality Strong Domestic Presence through 4,134 Branches Provides Financial Services to over 49 mlncustomers Globally Robust Technology Platform with 100% CBS in global operations

3 Results at a glance Apr-Dec, FY13 Q3, FY13 Operating Profit up 4.7%(y-o-y) to Rs 6,892 crore Operating Profit dn-13.5% (y-o-y) to Rs 2,256 crore Net Profit dn1.1%(y-o-y) to Rs 3,452 crore Net Profit dn21.6%(y-o-y) to Rs 1,012 crore Net Interest Income up 13.1%(y-o-y) to Rs 8,501 crore NIM at 2.73%in Global & at 3.17%in Domestic operations Net Interest Income up 7.0%(y-o-y) to Rs 2,841 crore NIM at 2.65%in Global & at 3.08% in Domestic operations ROAA (annualized) at 0.98% ROAA (annualized) at 0.84% Total Business up 17.1%(y-o-y) to Rs 7,14,051 crore by end-dec, 2012 Total Advances up 14.8% (y-o-y) to Rs 2,99,318 crore by end-dec, 2012 Total Deposits up 18.8% (y-o-y) to Rs 4,14,733 crore by end-dec, 2012 Net NPAs (%) at 1.12%as on 31 st Dec, 2012 ProvisionCoverage Ratio at the healthy level of 70.88%as on 31 st Dec, 2012 CRAR at 12.66% with Tier 1 at 9.33% as on 31 st Dec, 2012 Cost-Income ratio at 37.35%in Apr-Dec, FY13.

4 Performance since FY (Annual) (Annual) (Annual) (Annual) (Annual) Apr-Dec, (Nine-Monthly) Assets (Rs crore) Net Profit (Rs crore) 1,83,479 2,26,672 2,78,317 3,58,397 4,47,321 4,88,563 1,436 2,227 3,058 4,242 5,007 3,452 Tier 1 (%) 7.64% 8.49% 9.20% 9.99% 10.83% 9.33% Return on Equity (%) Cost-Income Ratio (%) 15.07% 19.48% 22.19% 21.48% 19.04% 15.26% 50.89% 45.38% 43.57% 39.87% 37.55% 37.35% NPL (Net, %) 0.47% 0.31% 0.34% 0.35% 0.54% 1.12% In four yrs & nine months, Bank s assets have grown 2.66 times. Bank s nine-monthly net profit in Apr-Dec, FY13 is bigger than its full year s profit in FY10.

5 Impressive CAGR for key parameters (FY08 thru FY12) Parameter CAGR (FY08 thru FY12) Assets 24.96% Gross Profit 31.02% Net Profit 36.65% Net Worth 28.90% Total Capital 26.84% Tier-1 Capital 34.13%

6 Sustained expansion of global branch network FY'08 FY'09 FY'10 FY'11 FY'12 Apr-Dec, FY13 Domestic Brs Global Brs

7 Features of domestic branch network Inayear stime(dec 11toDec 12),theBankadded443brstoitsdomesticnetworkcomprising91 inmetro;49inurban;169insemi-urban&134inruralareas. During Apr-Dec, FY13, the Bank opened 231 new brs (22 in metro, 23 in urban, 81 in semi-urban and105inruralareas)andmergedoneruralbrinjune,2012&convertedthatintoasatelliteunit. In the remaining part of FY13, the Bank plans to open 365 new brs with 196 brs in Tier-I & Tier-II centres& 169 brs in Tier-III to Tier-VI centres. Newly opened branches in Apr-Dec, FY13 majorly belong to Rajasthan; Eastern UP; Bihar, Jharkhand& Orissa; Maharashtra& Gujarat. Around 33.14% of the Bank s network at the end-dec, FY13 was situated in rural areas. Moreover, the Bank s ATM tally improved from 1,838 at end-dec, 2011 to 2,288 at end-dec, Regional Break-up of Domestic Branches as on 31 st Dec, 2012 Metro Urban Semi-Urban Rural ,126 1,370

8 No. branches, offices, countries 120 Deepening of overseas business Overseas Branches Overseas Offices Presence: No. of Countries

9 Other strengths: Robust technology platform Bank s entire domestic, overseas and RRB framework is CBS-compliant. All domestic branches are migrated on MPLS network. New branches are directly opened in MPLS network. Bank has IT facilities for online/offline account opening through Business Correspondents under Financial Inclusion. Bank s retail & corporate customers enjoy several facilities under its Internet Banking Delivery Channel such as fund transfers to self & third party (within BoB); RTGS/NEFT, online payment of bills& taxes, Custom duty payments, rail-ticket booking, temple donations, online subscription to IPOs/FPOs thru ASBA & institutional fee payment etc. The SMS alerts & RTGS/NEFT transactions are also implemented in the Internet Banking Portal. Bank has implemented Internet Banking in 13 of its overseas territories, notably Oman, Tanzania, Uganda, Kenya, Mauritius, Seychelles, Botswana, New Zealand, UAE, Fiji, UK,Ghana. And Australia. To provide safe online banking services to its customers & protect them from phishing attacks, Bank has implemented a Fraud Management Solution. SMS alerts facility is also provided to customers. Bank has implemented the RaidFunds2India solution in all its major territories. Bank s Mobile Banking (Baroda M-Connect) provides various facilities to its customers like balanceenquiry, mini-statements, linking of multiple accounts, funds transfer, bill payments, ticket booking, shopping, feedback facilities, etc. IMPS facility is also launched for customers. Bank s Mobile Banking application is available on all Leading Brands including Blackberry, Android, iphone, Windows, etc. National Unified USSD Platform is also enabled through Mobile Banking. Account transfers through IMPS is also made available through Mobile Banking.

10 Other strengths: Robust technology platform Internet Payment Gateway has been implemented to facilitate e-commerce transactions in multi currencies across the globe. ATM switch is upgraded to handle increasing volume of ATM transactions; the ATM Switch also support eight international territories. BankhasintroducedRupayCard,RupayKCCCard.TheeightBrownLabelATMsarealsomadelive. Bank has introduced the facility of Multiple Accounts being linked to a single Debit Card (verified by Visa, CVV2) and also Mobile Number registration thru ATMs in CBS for SMS Alerts. E-tax payments thru ATMs are also facilitated and Mobile ATMs are introduced in several cities. Bank has set up two Contact Centres in Lucknow & Baroda to fast address the customer queries & grievances. Cash Management Solution is implemented to provide operational support to customers ALM. Anti Money Laundering(AML) has been implemented in India and 23 of Bank s overseas territories. Online Trading(Corporate and Retail) has been implemented in India. Bank has implemented an Integrated Global Treasury Solution in its major territories like U.K., UAE, Bahamas, Bahrain, Hong Kong, Singapore, Belgium, USA and India to achieve reduced cost of operations & better fund mgmt. Bank has a centralised SWIFT system for India& its 23 overseas territories. CTS -Cheque Truncation System implemented in Delhi and Grid based CTS was implemented in Chennai, Coimbatore and Bangalore. CTS will be shortly implemented in Western Grid also.

11 Other strengths: Robust technology platform ACPC (Automated Cheque Processing Centre) for centralised Inward/Outward clearing has been implemented in Mumbai, Surat and Ahmedabad. Back Office functions have been centralised in the Bank at City Back Offices & ten Regional Back Offices (at Baroda, Jaipur, Lucknow, Bhopal, Coimbatore, Kolkata, Mumbai, Jamshedpur, New Delhi, Pune) to improve the delivery of services. Travel Card in foreign currency is introduced. HRNes- A centralised database of employees for facilitating promotion, selection exercise and automating HR policies with transparency is implemented. Payroll- A centralised online mechanism for salary payment of employees and leave maintenance has also been implemented. Online application for SME and Agriculture Loan enabled along-with Housing Loan, Education and Auto Loan. Online tracking of those applications has also been enabled. Bank has built a State-of-the-Art Data Centre conforming to Uptime Institute Tier-3 standard & a Disaster Recovery Site in different seismic zones to ensure uninterrupted banking services delivery to customers. Various technology projects like Virtualization, CPU and Memory up-gradation, Backup consolidation, RAC implementation, bandwidth up-gradation of branches are undertaken to support increasing business requirement. BoB IIT an exclusive IT Training Centrehas been set up in Gandhi-Nagar to educate the Bank s staff in all IT related products& services.

12 Other strengths: Rich human resource base. Period No. of Employees No. of Officers Ratio of Officers to Total Employees Q1, FY09 36,344 13, % Q2, FY09 36,255 13, % Q3, FY09 36,045 13, % Q4, FY09 36,838 13, % Q1, FY10 37,007 14, % Q2, FY10 38,609 14, % Q3, FY10 37,039 14, % Q4,FY10 38,960 14, % Q1, FY11 38,551 14, % Q2, FY11 38,724 15, % Q3, FY11 38,629 15, % Q4, FY11 40,046 15, % Q1, FY12 40,250 15, % Q2, FY12 40,967 16, % Q3, FY12 41,345 16, % Q4, FY , % Q1, FY13 42,136 16, % Q2, FY13 42,815 17, % Q3,FY13 42,585 17, %

13 Other strengths: Steady improvement in capital strength Capital Adequacy Ratio (Basel-II) Tier-I (%) Tier-II (%) Q1, FY % 7.79% 5.25% Q2, FY % 7.57% 5.00% Q3, FY % 8.53% 4.67% Q4, FY % 8.49% 5.56% Q1, FY % 8.81% 5.75% Q2, FY % 8.86% 5.81% Q3, FY % 9.31% 5.34% Q4,FY % 9.20% 5.16% Q1, FY % 8.16% 5.09% Q2, FY % 8.16% 5.06% Q3, FY % 7.70% 4.75% Q4, FY % 9.99% 4.53% Q1, FY % 9.06% 4.04% Q2, FY % 8.82% 3.91% Q3, FY % 9.31% 4.14% Q4, FY % 10.83% 3.84% Q1, FY % 10.13% 3.61% Q2, FY % 9.57% 3.34% Q3, FY % 9.33% 3.33%

14 Other strengths: Relatively stronger presence in progressive states Rest of India, 23.5 Gujarat, 20.4 Maha & Goa, 11.7 UP & Uttaranchal, 21.9 Southern States, 11.2 Rajasthan, 11.3

15 Pattern of shareholding: 31 st Dec, 2012 Indian Public 4.65% Corp. Bodies 5.51% Others 0.24% As on 31 st Dec, 2012 Share Capital: Rs crore No. of Shares: million FIIs 16.60% Net worth: Rs 30,167crore (up 24.8%, y-o-y) B. V. per share: Rs (up 18.9%, y-o-y) Return on Equity: 15.3% in Apr-Dec, FY13 Insurance Cos 12.72% Mutual Funds 5.97% Govt. of India 54.31% BOBisaPartofthefollowingIndexes BSE100,BSE200,BSE500&Bankex Nifty, BankNifty, CNX 100, CNX 200, CNX 500 BOB s Share is also listed on BSE and NSE in the Future and Options segment.

16 Sustained growth in financial value Period Net Worth Growth Rate (y-o-y) Q1, FY09 9, % Q2, FY09 10, % Q3, FY09 11, % Q4, FY09 11, % Q1, FY10 12, % Q2, FY10 12, % Q3, FY10 13, % Q4,FY10 13, % Q1, FY11 14, % Q2, FY11 15, % Q3, FY11 16, % Q4, FY11 19, % Q1, FY12 20, % Q2, FY12 22, % Q3, FY12 24, % Q4, FY12 26, % Q1, FY13 27, % Q2, FY13 28, % Q3, FY13 30, %

17 Bank had consistent performance despite a non-supportive macro backdrop Economic Indicator Q3, FY12 Q4, FY12 Q1, FY13 Q2, FY13 Q3, FY13 Real GDP growth(%) N.A. Agriculture (%) N.A. Industry (%) Services (%) Private Consumption Expenditure growth (%) (at current market prices) Gross Fixed Capital Formation (% to GDP) (at current market prices) N.A N.A N.A N.A. SCB Credit growth (%, Avg Basis) SCB Deposit growth (%, Avg Basis) SCB Incremental Credit-Deposit Ratio (%, end-period) WPI-Inflation, Core Inflation(%) (end-period) Trade Balance ( US $ Billion) (7.91) 7.69 (4.96) 7.25 (4.85) 7.81 (5.56) 7.18 (4.24) Rupee-USD (%, end-period) Foreign Exchange Reserves (endperiod, US $ Billion)

18 Total business growth from FY , , , , , , , , , , , FY09 FY10 FY11 FY12 Q1, FY13 Q2, FY13 Q3, FY13 Series1 Domestic Business Overseas Business During the last three yrs & nine months, the Bank s total business has expanded 2.13 times. However, the pace of change in domestic business has been modest in Apr-Dec, FY13 due to the macro headwinds.

19 Total deposit growth from FY , ,762 72, FY09 FY10 FY11 FY12 Q1, FY13 Q2, FY13 Q3, FY13 Total Deposits Domestic Deposits Overseas Deposits During the past three yrs & nine months, the Bank s total deposits have grown 2.16 times. The pace of deposit mobilisation has been consistently well maintained avoiding any kind of liquidity stress.

20 Total advances growth from FY % % % % % 25.70% 23.00% 22.19% 14.80% 30.00% 25.00% 20.00% 15.00% 10.00% % 10 FY09 FY10 FY11 FY12 Q1, FY13 Q2, FY13 Q3, FY % Net Advances Net Advances Growth During the past three & a half years, the Bank s total advances (net terms) too have more than doubled. However, the pace of advances growth has slowed down during FY13 on the back of lacklustre credit demand.

21 Steady gains in market share % 4.25% 4.20% 4.00% 3.97% 3.80% 3.60% 3.63% 3.40% 3.42% 3.20% 3.00% Deposit Share Advances Share

22 Consistency in profit-making Rs crore During the last five years, the Bank s Ninemonthly Net Profit has grown at the decent CAGR of 24.4% Dec'07 Dec'08 Dec'09 Dec'10 Dec'11 Dec'12 Gross Profit Net Profit

23 Relatively lower NPL ratios in the industry Period Gross NPA (%) Net NPA (%) Q1, FY % 0.52% Q2, FY % 0.43% Q3, FY % 0.37% Q4, FY % 0.31% Q1, FY % 0.27% Q2, FY % 0.27% Q3, FY % 0.31% Q4,FY % 0.34% Q1, FY % 0.39% Q2, FY % 0.38% Q3, FY % 0.36% Q4, FY % 0.35% Q1, FY % 0.44% Q2, FY % 0.47% Q3, FY % 0.51% Q4, FY % 0.54% Q1, FY % 0.65% Q2, FY % 0.82% Q3, FY % 1.12%

24 Bank s business: Dec 11 to Dec 12 Particular (Rs crore) Dec 11 Mar 12 Dec 12 Y-O-Y (%) Change Over Mar 12 (%) Global Business 6,09,867 6,72,248 7,14, Domestic Business 4,35,228 4,82,211 4,96, Overseas Business 1,74,639 1,90,038 2,17, Global Deposits 3,49,206 3,84,871 4,14, Domestic Deposits 2,54,994 2,80,135 2,95, Overseas Deposits 94,212 1,04,736 1,19, Global CASA Deposits 94,823 1,03,524 1,07, Domestic CASA 86,836 92,948 95, Overseas CASA 7,987 10,576 12, Share of Domestic CASA was at 32.22% in terms of Aggregate Deposits and at 34.35% in termsofcoredepositsason31 st December,2012.

25 Bank s business: Dec 11 to Dec 12 Particular (Rs crore) Dec 11 Mar 12 Dec 12 Y-O-Y (%) Change Over Mar 12 (%) Global advances (Net) 2,60,661 2,87,377 2,99, Domestic Advances 1,80,234 2,02,075 2,01, Overseas Advances 80,427 85,302 98, Retail Credit Of which: 31,047 35,668 35, Home Loans 13,700 14,133 15, SME Credit 32,123 34,512 39, Farm Credit , Credit to Weaker Sections 14,080 15,863 16,

26 Bank s business: Dec 11 to Dec 12 Change Particular (Rs crore) Dec 11 Mar 12 Dec 12 Y-O-Y (%) Over Mar 12 (%) Global Saving Deposits 71,842 74,580 79, Domestic Savings Deposits Overseas Savings Deposits 70,169 72,575 77, ,674 2,004 2, Global Current Deposits 22,981 28,944 27, Domestic Current Deposits Overseas Current Deposits 16,667 20,372 17, ,314 8,572 10,

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

28 Other highlights: Q3, FY12 versus Q3,FY13 Particular (in %) Q3, FY12 Q4, FY12 Q1, FY13 Q2, FY13 Q3, FY13 Global Yield on Investment Domestic Yield on Investment Overseas Yield on Investment Global NIM Domestic NIM Overseas NIM The Bank s NIM in Domestic Operations stood at 3.17% and in Overseas Operations at 1.62% and in Global Operations at 2.73% during Apr-Dec, FY13.

29 Key productivity indicators: Q3, FY12 versus Q3, FY13 Particulars Q3, FY12 Q3, FY13 Business per Employee (Rs crore) Business per Branch (Rs crore) Profit per Employee (Rs lakh) Profit per Branch (Rs lakh)

30 Non-Interest income: Q3, FY12 and Q3, FY13 (Rs crore) Q3, FY12 Q3, FY13 % Change (Y-O-Y) Commission, Exchange, Brokerage % Incidental Charges % Other Miscellaneous Income % Total Fee-Based Income Trading Gains % Profit on Exchange Transactions % Recovery from PWO % Total Non-Interest Income 1, %

31 Provisions & contingencies: Q3, FY12 and Q3, FY13 (Rs crore) Q3, FY12 Q3, FY13 Absolute Change Provision for NPA & Bad Debts Written-off Provision for Depreciation on Investment Provision for Standard Advances Other Provisions (including Provision for staff welfare) Tax Provisions Total Provisions 1, ,

32 Bank s domestic treasury highlights: Q3, FY13 Trading Gains sequentially improved from Rs 112 cr in Q2, FY13 to Rs 136 cr in Q3, FY13 on account of improved market dynamics during the quarter. Even Forex profits remained firm on sequential basis. AsofDec31,2012, theshareofslrsecuritiesintotalinvestmentwas84.87%. TheBankhad78.59%ofSLRSecuritiesinHTMand21.12%inAFSatend-Dec2012. During the year FY13, the Bank shifted SLR securities worth Rs 1, cr(at book value) fromafstohtmon3 rd AprilandprovidedRs20.69cras depreciation onshifting. ThebenchmarkG-secyieldatthetimeofshiftingruledat8.57%. ThepercentofSLRtoNDTLason31 st Dec,2012wascloserto28.0%. As on 31 st Dec, 2012, the modified duration of AFS investments was 3.34 years & that of HTM securities was 5.00 years. TotalsizeofBank sdomesticinvestmentbookason31 st Dec,2012stoodatRs98, crore.

33 Highlights of overseas business: Apr-Dec, FY13 As on 31 st Dec, 2012, the Bank s Overseas Business contributed 30.4% to its Total Business, 24.4% to Gross Profit and 37.7% to Core Fee-based income (i.e., Commission, Exchanges, brokerage, etc.) Out of the Total Overseas Loan-book, 53.6% was Buyers Credit/ Export Credit; 27.4% in was Syndicated Loans/ECBs(mostly to Indian corporates)& 19.01% was Local Credit. Less riskiness of the Overseas Loan-book was responsible in keeping Gross NPA (%) in OverseasAssetsat 0.73%ason31 st Dec,2012. Even the Cost-Income Ratio in Overseas operations was more favourable at 17.59% in Apr- Dec, FY13 versus 43.62% in Domestic operations. In Q3, FY13, the NIM (as % of interest-earning assets) in Overseas operations stood at the healthy level of 1.58%; Gross Profit to Avg. Working Funds ratio at 1.42% and Return on Equity at 15.66%. During Apr-Dec, FY13, Bank opened nine new branches in its overseas territories, out of which two belonged to New Zealand; two to Uganda and one each was opened in Mauritius, Ghana, Oman, Kampala& Australia.

34 NPA movement (Gross): Apr-Dec, FY13 Particular ( Rs crore) A. Opening Balance 4, B. Additions during Apr-Dec, FY13 4, Out of which, Fresh Slippages 4, C. Reduction during Apr-Dec, FY13 1, Recovery Upgradation PWO & WO 1, Exchange Difference 3.13 NPA as on 31 st Dec, , Recovery in PWO in Apr-Dec, FY

35 Sector-wise gross NPAs: End-Dec, FY12 & FY13 Sector Gross NPA (%) End-Dec, FY12 Gross NPA (%) End-Dec, FY13 Agriculture Large & Medium Industries Retail Housing SSI (Mfg) Total MSME Overseas Operations

36 Bank s domestic exposure to different industries, 31 st Dec, 2012 Industry % Share in Gross Domestic Credit as on 31 st Dec, 2012 Industry % Share in Gross Domestic Credit as on 31 st Dec, Infrastructure 14.5% 10. Paper & Paper Products 0.8% 2. Basic Metals & Metal Products 7.1% 11. Gems& Jewellery 0.7% 3. Textiles 5.1% 12. Mining & Quarrying 0.6% 4. Chemicals & Chemical Products 3.3% 13. Cement & Cement Products 5. All Engineering 3.0% 14. Vehicles, Vehicle parts & Transport Equipment 0.6% 0.5% 6. Construction 2.5% 15. Glass & Glassware 0.4% 7. Food Processing 2.4% 16. Beverages 0.3% 8. Rubber, Plastic & their Products 1.5% 17. Leather & Leather Products 0.2% 9. Petroleum 1.4% 18. Wood & Wood Products 0.2%

37 Cumulative position of restructured assets During the past 57 months (1 Apr 08 to 30 Sept 12), Bank has restructured 89,050 accounts amounting Rs 18,268 crore in its Domestic operations. Within this, the loans worth Rs 771 cr were restructured in Q1, FY13, Rs 933 cr in Q2, FY13; Rs 1,587 cr in Q3, FY13; Rs 8, cr in FY12, Rs 1, cr in FY11, Rs2,455.05crinFY10&Rs2,658.57crinFY09. For the period of 57 months, out of the total amount restructured, Rs 13,974 cr (76.5%) belonged to wholesale banking, Rs 2,600 cr (14.2%) to SMEs, Rs 624 cr (3.4%) to retail and Rs 1,069 cr(5.9%) to agriculture sector. About 118 accounts (of Rs 1 crore & above) restructured on/after 1 st Apr, 2008 with aggregate outstanding of Rs 2,496 cre slipped to NPA after restructuring and mostofthembelongedtothesmesegment. In cumulative terms, the Bank has restructured 89 accounts in its Overseas operations involving the amount of Rs 4,725 crore. Out of these, the accounts restructured during Apr-Dec, FY13 are 20 involving the amount of Rs 1,069 crore.

38 Sectoral deployment of credit at end-dec, 2012 Sector % share in Gross Domestic Credit Agriculture 14.0% Retail 17.2% SME 19.0% Wholesale Misc. including Trade Total 100.0%

39 Bank s BPR Project - Navnirmaan Project Navnirmaan has altogether -18- initiatives covering both Business Process Re-engineering and Organization Re-structuring, aimed at transforming the Bank s branches into a sales and service centres through sustained Centralization to make possible Sales growth, superior customer experience and alternate channel migration. The most important initiatives are:- Conversion of all metro and urban branches into Baroda Next within a timeline [ branches rolledoutsofaracross-13-zonesand-56-regions]. Creation of automated and lean Back Offices like: City Back Office[Automated cheque processing introduced at Mumbai, Surat and Ahmedabad]. Regional Back Office[-10- RBOs functioning] for CASA opening[no. of branches linked 2710]& issuance of Personalized Cheque Books [[No. of branches linked ]. More than 5,700 CASA are being opened per day. Establishment of-2- Contact Centres[at Lucknow and Baroda]. Introduction of frontline automation [viz. Queue Management System and Cheque deposit Machines] at select branches for customer convenience. Conducting Trainings and Boot camps. Organization Re-structuring[creation of Selling roles at branch, R.O. and Z.O.] The initial impact of Baroda Next migration has been found to be rewarding both in terms of increased customer satisfaction and CASA growth.

40 Bank s BPR Project - Navnirmaan The said impact has been sustained at 110 Baroda Next branches evaluated on (a) sales and (b) customer satisfaction during first stage of evaluation. Another evaluation carried out recently on (a) Customer satisfaction [at -177-] and (b) Employee satisfaction [at -171] Baroda Next branches, shows significant improvement. A certification procedure for Baroda Next branches have been introduced in terms of which process compliance/ adherence are being evaluated by Bank s Internal inspectors and CSAT / ESAT externally evaluated by engaging Market Research Agencies. To sustain Sales Growth, a new Sales Operating Model has been rolled out in branches in -25-Regions over 20 cities. Out of -15-Mid-corporate branches planned, all are functional. Further centralization initiatives are being piloted to enable the branches to become a Sales-cum-Service Outlet. Bank s Hi-tech City branch, Hyderabad has been transformed into an e-branch.

41 Bank s HR initiatives Recruitment- FY13 The Bank has been hiring on a sustained basis year after year, to cater to the gap created by superannuation, sustained business growth and rapid branch expansion. (Joined up to ) New Hiring in FY12-13: (2700) Probationary Officers (429) Specialist officers (54) Baroda Manipal Trainees (342) Campus Recruitment (237) Clerks - 2,000 (1,638) Massive skills up-gradation and several structured programmes for new joinees werec carried out during the year to develop important Banking skills with a focus on skills needed for Credit& Forex operations, soft skills, etc.

42 Bank s HR initiatives A dedicated HR transformation project SPARSH has been initiated by the Bank - to revamp its existing HR processes, structures and policies. Various measures in the direction of talent management, succession planning, creating a scientific staffing model & manpower planning, development and capability building, performance management, etc. have been initiated. Opening of the Baroda Manipal School of Banking as an innovative and new channel of resourcing of trained manpower in the Bank. Around 180 students are being inducted into this school every quarter for a focussed grooming and for a one-year full-time PG course in banking which is tailored to the Bank s specific requirements.

43 Future Outlook & Guidance Since mid-sept, 2012, India s government has taken several corrective measures to improve fiscal consolidation and investment climate. RBIalsohascutboththeCRRandkeypolicyratestoaddresstheriskstogrowth&liquidity. Advancing of long-awaited reforms has helped lift the stock market and the rupee. Yet,giventheintensityofmacroheadwinds,thenationislikelytopostthegrowthbetween5.2%to 5.5% in FY13. As the outlook for credit is still not very positive, the Bank will continue with its Cautious stance. Strategic thrust will be on protecting the Financial Soundness that the Bank has consistently maintained throughout the period of global turbulence. With a primary focus on asset quality management, CASA mobilisation, recovery, liquidity management, etc. The positive factor for the Bank, going ahead is the Consistent Leadership. I would like to conclude by giving the quote of Tom Seaver In baseball my theory is to strive for consistency, not to worry about the numbers. If you dwell on statistics you get shortsighted, if you aim for consistency, the numbers will be there at theend. Thank you.