ANNUAL REPORT 2018-19 ¢¨¸«¸¡¸¬¸»¸Ú Index

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ANNUAL REPORT 2018-19 ¢¨¸«¸¡¸¬¸»¸ú Index

¢¨¸«¸¡¸ œ¸¼«“ Contents Page

‚š¡¸®¸ ˆÅ¸ ¬¸¿™½©¸ 06 Chairman’s Statement 08

œÏ¤¸¿š¸ ¢›¸™½©¸ˆÅ ‡¨¸¿ Ÿ¸º‰¡¸ ˆÅ¸¡¸Äœ¸¸¥¸ˆÅ ‚¢š¸ˆÅ¸£ú ˆÅ¸ ¨¸Æ÷¸¨¡¸ 10 MD & CEO’s Statement 14

¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä 18 Directors’ Report 41

ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½Ä›¬¸ œ¸£ ¥¸½‰¸¸ œ¸£ú®¸ˆÅ¸½¿ ˆÅ¸ œÏŸ¸¸μ¸-œ¸°¸ 63 Auditors’ Certificate on Corproate Goveranance 63

ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½Ä›¬¸ ¢£œ¸¸½’Ä 65 Corporate Governance Report 65

‡Ÿ¸”ú ¨¸ ¬¸úƒÄ‚¸½ ×¸£¸ ‹¸¸½«¸μ¸¸ 101 Declaration by MD & CEO 101

¬¸¢¸¨¸¸¥¸¡¸ ¥¸½‰¸¸œ¸£ú®¸¸ ¢£œ¸¸½’Ä 102 Secretarial Audit Report 102

Ÿ¸í÷¨¸œ¸»µ¸Ä ¢¨¸î¸ú¡¸ ¬¸»¸ˆÅ 105 Key Financial Indicators 105

÷¸º¥¸›¸ œ¸°¸ 108 Balance Sheet 108

¥¸¸ž¸ ¨¸ í¸¢›¸ ‰¸¸÷¸¸ 109 Profit & Loss Account 109

Ÿ¸í÷¨¸œ¸»μ¸Ä ¥¸½‰¸¸ ›¸ú¢÷¸¡¸¸¿ 120 Significant Accounting Policies 120

›¸ˆÅ™ú-œÏ¨¸¸í ¢¨¸¨¸£μ¸ 188 Cash Flow Statement 188

¥¸½‰¸¸ œ¸£ú®¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä 190 Auditors’ Report 190

‚œ¸¹£¨¸¹÷¸Ä÷¸ ‚¹ž¸Ÿ¸÷¸ ¬¸¹í÷¸ ¥¸½‰¸¸œ¸£ú®¸¸ ¹£œ¸¸½’Ä ˆÅú ‹¸¸½«¸μ¸¸ 198 Declaration of Unmodififed Opinion 198

¬¸úƒÄ‚¸½ / ¬¸ú‡œ¸€‚¸½ œÏŸ¸¸μ¸úˆÅ£μ¸ 199 CEO / CFO Certification 199

¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£¢μ¸¡¸¸¿ 200 Consolidated Financial Statement 200 ‚œ¸¹£¨¸¹÷¸Ä÷¸ ‚¹ž¸Ÿ¸÷¸ ¬¸¹í÷¸ ¥¸½‰¸¸œ¸£ú®¸¸ ¹£œ¸¸½’Ä ˆÅú ‹¸¸½«¸μ¸¸ 248 Declaration of Unmodififed Opinion - Consolidated 248 - ¬¸Ÿ¸½¢ˆÅ÷¸

¬¸úƒÄ‚¸½ / ¬¸ú‡œ¸€‚¸½ œÏŸ¸¸μ¸úˆÅ£μ¸ 249 CEO / CFO Certification 249

¥¸¸ž¸¸¿©¸ ¬¸¿¢¨¸÷¸£μ¸ ›¸ú¢÷¸ 250 Dividend Distribution Policy 250

¤¸¸¬¸½¥¸ III œÏˆÅ’úˆÅ£µ¸ 252 Basel III Disclosures 252

›¸¸½¢’¬¸ 253 Notice 253

œÏ¸ÁÆ¬¸ú ûÅ¸ÁŸ¸Ä 271 Proxy Form 271

í¢£÷¸ œ¸í¥¸ - ©¸½¡¸£š¸¸£ˆÅ¸½¿ ¬¸½ ‚œ¸ú¥¸ 273 Green Initiative Appeal 273

1 8,60,00,000+ ~H$¢ Am° µ\$ ~µSmXm-EH$¡ PbH$ J«mhH$ BANK OF BARODA AT A GLANCE Customers

55,754 H$_©Mmar Employees

5,553 Kaobw emImE§ Domestic Branches

100 {dXoer emImE§ 21 Xoemo¨ _¨o Overseas Branches in 21 countries

9,572 EQ>rE_ Ed§ H¡ e [agmB³bg© ATMs and Cash Recyclers

15,356 ì`dgm` à{Ëm{Z{Y AmCQ>boQ²g Business Correspondent Outlets

` 12,690 Cr. {dÎmr` g_mdoeZ Ho$ VhV Hw b O_mam{e`m¨ Total Deposits amounting to Financial Inclusion

40.23% H mgm AZwnmV CASA Ratio

20.4% {Zdb ã`mO Am` _| df©-Xa-df© d¥{Õ Year-on-Year Growth in Net Interest Income

12.3% n{aMmbZ bm^ _| df© Xa-df© d¥{Õ Year-on-Year Growth in Operating Profit

13.42% nyOr§ n`m©áVm AZwnmV (~mgob &&&) 31 2019 Capital Adequacy Ratio (Basel III) g^r AmH§ ‹So [XZm§H _mM©, H m.o All data as on March 31, 2019. ãmohVa go ãmhVarZo ~¢{H§$J godma{hV Ed§ d§{MV dJm] H$m ge{º$H$aU EMPOWERING THE UNBANKED AND THE UNDERPRIVILEGED

~¢H$ `h _mZVm h¡ {H$ ^maV Ho$ {dH$mg Ho$ {bE {dÎmr` g_mdoeZ An{ahm`© h¡. The Bank believes that financial inclusion is a sine qua non for g^r dJm] H$mo ~¢{H§$J gw{dYmE§ CnbãY H$amZo H$s h_mar ì`mnH$ aUZr{V Ho$ India’s growth. Our comprehensive strategy for making banking VhV g_mO Ho$ ~¢{H§$J godma{hV Ed§ d§{MV dJm] H$mo godm àXmZ H$aZo Ho$ {bE solutions accessible to all includes deepening our reach through a network of semi-urban & rural branches, Business Correspond- AY©-ehar Ed§ J«m_rU emImAm|, ì`dgm` à{V{Z{Y`m|, {S>{OQ>b M¡Zbm| Ed§ ents, digital channels and ATMs with a customised suite of {d{eï> gw{dYm`wº$ EQ>rE_ _erZm| Ho$ {dñV¥V ZoQ>dH©$ Ho$ _mÜ`_ go h_mar nhw±M offerings for the unbanked and marginalised sections of society. H$mo ~‹T>mZm em{_b h¡. ~¢H$ Z Ho$db {dÎmr` gmjaVm àXmZ H$a ahm h¡ ~{ëH$ The Bank not only imparts financial literacy training but also J«m_rU AW©ì`dñWm H$mo godmE§ àXmZ H$aZo, gw{dYma{hV `wdmAm| Ho$ H$m¡eb focuses on developing an ecosystem of alliances and partner- {dH$mg Am¡a {H$gmZm| H$s Am` _| d¥{Ó hoVw ZE CËnmXm| Ed§ ßboQ>\$m°_© CnbãY ships to launch products and platforms for serving the rural H$amZo Ho$ {bE AnZo gmPoXmam| Am¡a ^mJrXmam| Ho$ ~rM gh`moJ ~‹T>mZo hoVw economy, skilling underprivileged youth and enhancing the income of farmers. AZwHy$b dmVmdaU Ho$ {Z_m©U na ^r Ü`mZ Ho${ÝÐV H$a ahm h¡.

61.07% 49 51 Baroda Swarojgar Vikas Sansthan Financial Literacy & Branches in Semi-Urban & (BSVS) & RSETI Centres Credit Counseling Rural Areas in Seven States Centres (FLCCs) in Eight States

`12,690 Cr. `1,47,109 Cr. 2,38,974 Total Deposits in Farmers benefitted from Priority Sector Advances Financial Inclusion Accounts 8,018 choupals, 1,621 Kisan ( As of March 31, 2019 ) (10.7% share in A/cs, 12% in deposits) Melas, 339 Health Camps etc. BEHTAR SE BEHTAREEN

gyú_, bKw Am¡a _Ü`_ CÚ_m| H$m ge{º$H$aU EMPOWERING MICRO, SMALL AND MEDIUM ENTERPRISES

~¢H$ `h _mZVm h¡ {H$ ^maVr` AW©ì`dñWm Ho$ {dH$mg H$mo J{V àXmZ H$aZo _| The Bank believes that MSMEs are the primary growth drivers of g~go _hËdnyU© `moJXmZ gyú_, bKw Am¡a _Ü`_ CÚ_m| H$m h¡ Am¡a Bg{bE ~¢H$ the Indian economy and has taken multiple initiatives to service Zo BZ CÚ_m| H$s {dÎmr` Ed§ boZXoZ Oê$aVm| H$mo nyam H$aZo Ho$ {bE H$B© nhb| their financing and transaction needs. We have 42 dedicated ‘SME H$s h¢. ~mOma na Ü`mZ Ho${ÝÐV H$aZo Ho$ Ñ{ïH$moU Ho$ gmW E_EgE_B© goJ_|Q> loan factories’ with specialised sales and loan processing teams H$mo godm àXmZ H$aZo Ho$ {bE ~¢H$ Ho$ nmg {deofkVm àmá goëg Ed§ bmoZ to service the MSME segment with a target market approach. To 42 “ ” àmogo{g§J Q>r_ g_{W©V- - g_{n©V EgE_B© emImE§ EgE_B© bmoZ \¡$ŠQ—>r improve the efficiency of service delivery, Bank has centralized h¢. godm àXmZ H$aZo _| H$m`©XjVm H$mo ~ohVa ~ZmZo H$s Ñ{ï go ~¢H$ Zo _wå~B© Ed§ MSME loan processing, approval, disbursal and monitoring at {Xëbr _| E_EgE_B© g§~§Yr G$U à{H«$`m, AZw_moXZ, g§{dVaU Ed§ _m{ZQ>{a§J H$mo H|$ÐrH¥$V {H$`m h¡ Am¡a Bgo AÝ` H|$Ðm| na ^r bmJy H$aZo H$s ~¢H$ H$s `moOZm Mumbai and Delhi and has plans to roll it out at other centers. h¡. h_mar Hw$N _hËdnyU© nhbm| _| {g{~b E_EgE_B© a¢H$ (grE_Ama) go g§~Ó Some of our other key initiatives include introducing Risk Based E_EgE_B© G$Um| hoVw Omo{I_ AmYm{aV _yë`-{ZYm©aU H$m àma§^, nyU©V`m Pricing for MSME loans linked with CIBIL MSME Rank (CMR), {S>{‹OQ>mB‹ÁS> gßbm` MoZ \$mBZ|{g§J ßboQ>\$m°_© H$m Ama§^, doë`y MoZ {dÎmnmofU launching a fully digitised supply chain financing platform, value H$m`©H«$_ H$m àma§^, {\$ZQo>H$ ßbo`am| Ho$ gmW Q>mB©An, ì`dgm` gmPoXmam| Ho$ chain financing programme, tie-ups with Fintech players, gmW G$Um| H$m g_Ýd`, H$m|Q¡>ŠQ>bog G$U ßboQ>\$m°_© - www.psbloan- co-origination of loans with business partners, leveraging the sin59minutes.com/bob H$m Cn`moJ, OrEgQ>r àm{á`m| Ho$ noQo> {dÎmnmofU, Contactless Loan Platform - www.psbloansin59minutes.com/bob, _wÐm `moOZm Ho$ VhV G$U Am{X H$m g_mdoe h¡. ~¢H$ Q—o>S> {agrdo~ëg financing against GST receivables, credit under the MUDRA etc,. B©boŠQ>´m°{ZH$ {S>ñH$mC§Q> {gñQ>_ (Q>rAmaAmB©S>rEg) Ho$ VhV bm°ÝM hwE VrZm| The Bank was first to onboard on all the three Trade Receivables ßboQ>\$m°_© na H$m`© àma§^ H$aZo dmbm àW_ ~¢H$ ahm h¡. electronic Discount System (TReDS) platforms.

`6,023 Cr. `1,154 Cr. Specialised Scheme Loan Amount under Loan Amount under for Financing aganist GST MUDRA Scheme Stand-up India Scheme Receivables

1st Rank `1,888 Cr. 13% amongst PSBs Sanctioned out of which Market Share for Sanctions 55% is online in no. of Accounts ãmohVa go ãmhVarZo {S>{OQ>mBOoeZ H$s j_Vm H$m gXwn`moJ LEVERAGING THE POWER OF DIGITISATION

~¢H$ H$m _mZZm h¡ {H$ {S>{OQ>b _mÜ`_ hr {dÎmr` godmAm| H$m ^{dî` h¡. ~¢H$ Ho$ The Bank believes that the future of the financial services will be nmg {S>{OQ>b _mÜ`_m| _| boZXoZ H$mo gj_ ~ZmZo hoVw EH$ ì`mnH$ {S>{OQ>b digital. The Bank has a comprehensive digital strategy which H$m`©Zr{V h¡ {OZ_| \«§$Q> E§S> Am¡a ~¡H$-E§S> XmoZm| em{_b h¢. h_ AnZo J«mhH$m| encompasses both the front-end and the back-end to enable the H$mo AË`mYw{ZH$ gw{dYmE§ àXmZ H$aZo Ho$ {bE Z Ho$db AnZo _mÜ`_m| H$m migration of transactions to digital channels. We are not only g§dY©Z H$a aho h¢ Am¡a {deofê$n go V¡`ma CËnmXm|ã H$smohVa ewê$AmV H$a aho goh¢, ãaugmentingmhVarZo our channels and launching customised products to ~{ëH$ Ëd{aV Am¡a à^mdr n{aMmbZ hoVw AnZo ßboQ>\$m°_© Am¡a n{aMmbZ provide state-of-the-art digital experiences to customers but also upgrading our operating processes and platforms to enable us to à{H«$`mAm| H$mo AnJ«oS> ^r H$a aho h¢. ~¢H$ _mo~mBb Ho$ _mÜ`_ go ñdV: godm Ed§ operate with speed and efficiency. The Bank is working towards Qo>~boQ> Ho$ _mÜ`_ go ghm`H$ _moS> na H$B© godmE§ àXmZ H$aZo hoVw H$m`© H$a ahm enablement of multiple services on mobile in self-service mode h¡. “~¢H$ BZ-E-~m°Šg” H$s `h aUZr{V {S>{OQ>b Ho$ OmZH$ma J«mhH$m| H$mo and on assisted mode through tablets. The strategy of “Bank in a Amam_ go AnZo Kam| go à^mdr T§>J go boZ-XoZ H$aZo _| gj_ ~ZmEJr O~{H$ Box” enables digitally savvy customers to effectively transact Qo>~boQ> ~¢{H§$J godmAm| H$s Ka VH$ nhw±M gw{Z{üV H$aoJr.h_ `wdm J«mhH$m| VH$ from the comfort of their homes whereas tablets ensure doorstep AnZr nhw§M Am¡a ~‹TmZo Ho$ {bE {S>{OQ>b _mH}${Q§>J BH$mo{gñQ>_ H$m bm^ CR>m delivery of banking services.We leverage the digital marketing aho h¢ VWm Am§H$‹Sm| na AmYm{aV Am¡a _o{Q—>H$-g§Mm{bV {S>{OQ>b _mH}${Q§>J H$mo ecosystem to reach out to our younger customers and have put up AnZm aho h¢. ~¢H$ Zo {\$ZQo>H$ H§$n{Z`m| Ho$ gh`moJ go EH$ g_{n©V {\$ZQo>H$ the building blocks for data-led and metric-driven digital d{Q©>H$b ñWm{nV H$aZo dmbo gmd©O{ZH$ joÌ H$m àW_ ~¢H$ ~Z H$a marketing.The Bank has also played a pioneering role by nW-àXe©H$ H$s ^y{_H$m {Z^mB© h¡. h_Zo AmB©AmB©Q>r, _w§~B© Ho$ gh`moJ go ~m°~ becoming the first PSB to establish a dedicated FinTech vertical in BZmodoeZ g|Q>a (~rAmo~rAmB©gr) Am¡a ì`dgm{`H$ n{aUm_ Ho$ AZwHy$bZ hoVw collaboration with fintech players. We have also set up an IT Center of Excellence (ITCoE) to harness differentiated, {d^o{XV, _mH}$Q>-br{S§>J VH$ZrH$ Ho$ Cn`moJ Ho$ {bE AmB©Q>r g|Q>a Am°‹\$ market-leading technologies to driving business outcomes and a E{Šgb|e (AmB©Q>rgrAmogr) H$s ñWmnZm H$s h¡. BoB Innovation Centre (BoBIC) in collaboration with IIT, Mumbai.

Wide Digital Network Increasing Usage 8166 ATMs 17.23% POS/ECom 1406 Cash Recylers 107.53% Mobile Banking (F+NF) 1055 E-Lobbies 550.28% UPI 419 Lakh Active Debit Cards (YOY Growth)

40 Mobile Banking 1.2 Million+ extended to NRI Customers Fintech Partnerships Connects on and is available in facilitating Social Media Channels 13 Languages 4.5 Million People BEHTAR SE BEHTAREEN

So>Q>m H$s j_Vm H$m gXwn`moJ LEVERAGING THE POWER OF DATA

ENABLING A DATA DRIVEN ORGANISATION

1 2 3 4 Technology Analytics Data Culture

• Scalable Big Data Lake • Cross sell / up sell to increase • Future ready data management • High adoption across Bank platform with 6X of average product holding organization structure with units for data access / existing data storage • Customer retention and Winback required skills and roles exploration through • Fast and self-serving platforms • Transaction mining for external • Policies for effective data self-serving analytics tools - Analytics Workbench, takeover governance (limited reliance on IT) Visualization Tools • INDAS risk model

~¢H$ Z Ho$db Ëd{aV {ZU©` boZo Ed§ n{aMmbZ CËH¥$ïVm hoVw ~{ëH$ J«mhH$ g§Vw{ï The Bank believes in harnessing the power of both big data and ~‹TmZo hoVw ì`{º$JV AZw^d àXmZ H$aZo Ho$ {bE ^r {~J So>Q>m Am¡a ñ_m°b So>Q>m small data not only to drive decision-making and operational H$s j_Vm H$m Cn`moJ H$aZo _| {dœmg aIVm h¡. h_mar j_Vm ~‹TmZo Ho$ {bE ~¢H$ excellence but also to provide personalised experiences to increase customer delight. The Bank has set up an Analytics and Zo EZobo{Q>Šg Ed§ Am{Q©>{‹\${e`b B§Qo>brO|g g|Q>a Am°\$ E{ŠgboÝg (E Ed§ Artificial Intelligence Centre of Excellence (A & AI CoE) and an EAmB©grAmoB©) VWm noQ>m~mBQ> ñHo$b g{hV CÚ_-dma, So>Q>m Ed§ EZo{b{Q>H$ enterprise-wide, data and analytics technology platform with Qo>ŠZm°bm°Or ßboQ>\$m°_©- “{~J So>Q>m boH$” H$s ñWmnZm H$s h¡. EgrAmoB©, ZE petabyte scale - the Big Data Lake to augment our capabilities. The _yë`-g¥OZ Ed§ H«$m°g-go{b§J Adgam| H$s nhMmZ H$aZo Am¡a CÝh| ^wZmZo Ho$ A & AI CoE uses emerging technologies like Machine Learning {bE VWm J«mhH$ AmYma hoVw amOñd ~‹TmZo,bmJV H$_ H$aZo Am¡a Omo{I_ and Artificial Intelligence and works with multiple lines of àmo\$mBb gwYmaZo hoVw EZo{b{Q>Šg H$m bm^ CR>mZo _| ~¢H$ H$s j_Vm {dH${gV businesses to identify and realise new value-creation and cross-sell opportunity, and to build the Bank’s capability in H$aZo Ho$ {bE _erZ b{ZªJ Ed§ Am{Q©>{\${g`b B§Qo>{bOoÝg O¡gr C^aVr leveraging analytics to increase revenue, reduce costs and VH$ZrH$m| H$m Cn`moJ H$aVm h¡ Am¡a ~hw{dY ì`dgm`m| Ho$ gmW H$m`© H$aVm h¡. improve risk profiling of the customer base. EARLY BENEFITS DELIVERED

Disbursements through 5X Increase Analytics Driven Growth Potential in conversion rate of Retail Campaign identified in SME + Retail Book retail cross sell campaigns gathering momentum

Interactive Cross Sell Potential Dashboards for Insurance identified from for Campaign Tracking SME Portfolio and Credit Monitoring ãmohVa go ãmhVarZo h_mar emImAm| H$m ê$nmÝVaU TRANSFORMING OUR BRANCHES

~¢H$ Zo AJbr nr‹Tr H$s emImAm| Ho$ {Z_m©U Ho$ {bE H$B© ê$nmÝVaU nhb| H$s h¡§. The Bank has undertaken a gamut of transformational initiatives h_Zo AnZr emImAm| Ho$ ZoQ>dH©$ _| CËH¥$ïVm bmZo Ho$ {bE -3- à_wI VarH$m| to create next-generation branches. Our quest for excellence - à{H«$`mAm| H$m Ho$ÝÐrH$aU, {S>{OQ>brH$aU Ed§ ñQ—o>Q> W«y àmogogo‹O (EgQ>rnr) across our branch network encompasses 3 key vectors – centralisation of processes, digitisation and making straight through H$mo AnZm`m h¡. processes (STP). emIm H$s g§aMZm Ho$ nwZ{Z©_m©U H$m CÔoí` `h h¡ {H$ emIm Ho$ H$_©Mmar AnZm The purpose of revamping branch organization is to enable our A{YH$m§e g_` {S>{bdar à{H«$`mAm| H$s OJh {~H«$r H$m`m] _| bJm gH|$. Bggo branch employees to spend their disproportionate time with the emIm _| J«mhH$m| Ho$ AZw^d _| ~ohVar AmEJr Am¡a J«mhH$-g§~§Y Am¡a _O~yV customers on sales rather than on delivery processes. This leads ~Z|Jo. to enhancing the in-branch experience and strengthening the customer relationship. h_ Z Ho$db emIm _| n{aMmbZJV CVH¥$îQ>Vm H$mo ~‹Tmdm XoZo na Omoa Xo aho h¢, Not only are we focused on promoting operational excellence at ~{ëH$ h_ AnZo dmH$-BZ-J«mhH$m| H$s Oê$aVm| Ho$ à{V ^r OmJê$H$ Am¡a our branches but also are sensitive to the needs of our walk-in g§doXZerb h¢. h_Zo EH$ “n{adoe _¡ZwAb” Omar {H$`m h¡ Omo h_mar emImAm| customers. We have issued an ‘Ambience Manual’ that is helping _| VH$ZrH$ Ho$ AZwà`moJ na Omoa XoZo VWm gab ~¢{H§$J H$mo ~‹Tmdm XoZo Ho$ gmW us in aesthetically upgrading our branches with special emphasis emIm H$s n{adoeJV CËH¥$ïVm _| ghm`H$ gm{~V hmo ahm h¡. h_mao S>m°Š`y_|Q> on promoting the use of technology and increasing ease of banking. Our massive document digitisation effort has led to 2 {S>{OQ>mBOoeZ Ho$ _hËdnyU© à`mg Ho$ n{aUm_ñdê$n h_mar emImAm| H$mo 2 lakh sq. ft. of space being unlocked across our branches. bmI dJ© \w$Q> H$s Imbr OJh CnbãY hwB© h¡. k~ Üj§ $8',7256 j¦ÛivÛii}Û mÛivj ¦ |zÛkj¦ |zÛkj¦ Kalyaniwalla & Mistry LLP. Singhi & Co. Chartered Accountants Chartered Accountants qÛij¦}vÖj ¦ idv|vj ¦ii}Û |zÛkj¦ |zÛkj¦ G M Kapadia & Co. S R Dinodia & Co. LLP. Chartered Accountants Chartered Accountants

œÏš¸¸›¸ ˆÅ¸¡¸¸Ä¥¸¡¸ +HDG2IÀFH vÖzã|dj¦}Ûvz Baroda Bhavan, Alkapuri, Vadodara 390 007. v× {j§~¦ t}t Baroda Corporate Centre ÛqÛ ¢j¦ |®j¦¥j¦¢}§ |® } C-26, G-Block, Bandra-Kurla Complex, Bandra (E), e¥ Mumbai 400 051. }j§i¡äl ,QYHVWRU6HUYLFHV'HSDUWPHQW Ø vÖzj¦}¥t«tÛqÛ ¢j¦ 7th Floor, Baroda Corporate Centre, C-26, G-Block, ®j¦¥j¦¢}§ ® } e¥ Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. qtÑ i¡d}Ù iq¬t Registrars & Transfer Agent ¥j¦Û¥Ü¦|tj¦}°et M/s. Karvy Fintech Pvt. Ltd. |t àj¦d¢Ü×¦ vÖz Unit - Bank of Baroda j¦Û¥|t Û}t¨¦loÛ ¢ÛÜ¦e| Karvy Selenium Tower B, Plot No.-31&32, Gachibowli, Financial District, Nanakramguda, Serilingampally Mandal, vtÐ§t||¨¦lvÛ l}Û vÎz z Hyderabad - 500 032 Ï áj§j§v¬o }Ü 'HEHQWXUH7UXVWHHVRIRXU%DQN de¥vÛ Ûde¥tÐtÛ}¥ IDBI Trusteeship Services Ltd. i| v lãØdj¦|Ûl¥ v¥itt Asian Building, Ground Floor, 17,R Kamani Marg, e¥ Ballard Estate Mumbai - 400 001

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4 ¬¸Ÿ¸¸Ÿ¸½¥¸›¸ Amalgamation

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At Bank of Baroda, we believe that the amalgamation is value accretive for our stakeholders and ‘the whole is greater than the sum of its parts’.

Vijaya Bank and Dena Bank amalgamated into Bank of Baroda with effect from April 1, 2019. The amalgamation provides significant long-term benefits to the Bank and its customers. Bank of Baroda now has a much wider geographical reach with a combined distribution network of 9,500+ branches and 13,400+ ATMs in India. It has catapulted the Bank to the position of the third largest lender in the country and will enable us to leverage operational, revenue and cost synergies from a business perspective. The Bank has now access to a larger pool of 120 million+ customers with Deposits of ` 9.15 lakh crore and Advances of ` 6.51 lakh crore. Our market share now stands at 6.32% and 6.07% in Deposits and Advances respectively, as against a market share of 4.12% and 4.06% before the amalgamation. The revenue synergies accrue from increased cross-sell opportunities of our comprehensive suite of offerings including cash management services, supply chain financing, asset management, insurance and investment banking to our large customer base. The international presence of the Bank enables us to fund our clients’ foreign exchange requirements and meet their multi-currency funding needs. Immediate benefits accrue from common treasury operations and corporate banking and the rationalisation of administrative offices. In the medium term, cost synergies will flow in from optimisation of the distribution network, integration of IT infrastructure, data centres amd disaster recovery centres and centralisation of operations. In addition, the amalgamation has provided depth and width to the top leadership team of the Bank. The Bank’s new organisation structure ensures that different business initiatives and verticals are spearheaded by seasoned leaders. The benefits of these changes will reflect in our operations in the medium term. At Bank of Baroda, we believe that the amalgamation is value accretive for our stakeholders and ‘the whole is greater than the sum of its parts’.

5 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

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6 ‚š¡¸®¸ ˆÅ¸ ¬¸¿™½©¸ Chairman's Statement j¦¥oÛØj¦j¦d ÎØd|}|}j¦|®ØÎe {« ¹j¦Ø tÛv d kØj¦ydfj¦ |}°{|j¦qd|}Ø j¦Ûle¥j¦¥e¥j¦Ûq|j¦Û}â¥j¦Û¥j¦}t¥«zÛle¥ÎÎ ¨¦¡ØyÎq¥q|j¦j¦ àj¦««¥{j¦ |ØÎij¦Øj¦|Ûj¦j¦j¦ij¦| Ø}°¨¦Î} Øj¦ãÛij¦ Î} qÛ}¥}ØØd|}ØÎq|j¦dj¦Ød«j¦Ü¦Û ØØj¦}«qÛk|ÎlØj¦ àj¦ q«}°Ø}{Û¥ |Î g}Î àj¦|d}|de¥tÛj¦dcÖ ||j¦ifk|Û|qÛ äj§Ü¡ä}i¡ kÎØj¦d}|Ûde¥tÛ{d«j¦q Ø |j¦Øy}°Ø}{Û¥ ãj¦iij¦cÖ àj¦ ||j¦Ûz«Õ àj¦¸d ãj¦Û vqt}tÜ¦¢¥j¦dl cÖj¦ àj¦|zdØ{|j¦«td¢Ü¦ le¥}|Ø}°¨¦j¦ÛyØ«Î|Î|ÅØj¦lj¦ i§| Ü¦¢ de¥tÛ i i|t§ Øy dt¥Ü¦ e tq« ej¦ddj¦j¦ããÛ}°j¦j¦l°Îj¦«i ÎØ{j¦«j¦ y}Øj¦ÛÎãj¦Û àj ¦li|t§j¦Û§Øvqteq|d }°}ØÎj¦|j¦}°ãÛÎ|j¦yÎÛij¦Ûj¦j¦Û}°¨¦d ã Øj¦|Ûj¦j¦ãfu|}|ã¥ÎlÛØj¦l°Îj¦«j¦ÇØÛ àj ¦l Île¥Îqj¦ØÎØl°Îj¦j¦¥oÛde¥tÛd}°¨¦ij¦Ûj¦} i }°z|j¦Ûqj¦qÎ Îl°Îj¦«j¦iij¦¥{j¦} zÛz ØØq|Øj¦Ûle¥ÎÎe}°¨¦j¦d}|l°Îj¦«j¦¥o« àj¦j¦|¥j¦ÎÎàÎÛ Îij¦|q¥| y|j¦ãÛ|¥j¦ dd|ÎØ{j¦«j¦iij¦ÇØÛ y|j¦|¥j¦|ÎØ ÎÎàØyd}|j¦¥o«j¦j¦j¦}Î|qÛÎ ij¦dj¦}«zkÎÎà àj¦j¦d{j¦}«àe|}°«j¦ ¥q|j¦j¦ àj¦«j¦ie¥qd¢Ü¦i§iv¥i§« dl cÖ|«d}|ÛãlÛzÛj¦}°Ø ÎzkÎ£ e¥q j¦Ûj¦j¦Û{zÛ|ÛØãÛeÛtj¦j¦d|}Îr ØØÎi}°||ØÎÎÛÎj¦ àj¦j¦j¦j¦Ûe¥q ($6( q|j¦ ¨¦||ÎØ¸ØÛy|}°}ØÎdÎ qÎ z f}§Ø |ÛØ« j¦ } àj¦ j¦ }o|lØ j¦¥|}z| « }ØÎÎÎàm¨¦vt«ÎÛ·zÎq àj ¦l fµlj¦ÛdØzfooØÎÎf} {}o|lØzØd Ïkdc× q¥|«{j¦|ÅØj¦ØÎiÎj¦ÛlÛÎØj¦|Ûj¦Û¦} d{

7 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

CHAIRMAN'S STATEMENT

Dear Stakeholder, I am delighted to join Bank of Baroda as Chairman of the Board of Directors and it gives me pleasure to put my thoughts before you. In the last 112 years, from the time the Bank of Baroda was set up, it has been pioneer in the banking field and has a rich legacy of serving the society and the nation. As Chairman of the Bank, I remain committed to nurturing and furthering this legacy. The Banking Landscape A robust financial sector is essential for the growth of economy. We need to grow at 8-9% consistently over years to catch up with China and other developed economies. Achieving this requires a concerted effort that maintains the reform momentum and widens its scope for arriving at a durable solution to banking sector issues. The Government has adopted a multi-pronged strategy to improve the health of the Indian banking system. It announced 'U+DVPXNK$GKLD a recapitalization plan of ` 2.11 lakh crore in October 2017. Chairman As part of the above program, the government infused the second tranche of ` 1.06 lakh crore in Public Sector Banks (PSBs) in FY 2019. Capital infusion by the government has To be globally competitive, we need banks that are bigger helped in improving the health of the Indian banking system and stronger. Large financial institutions have the ability to and has led to an improvement in credit growth of SCBs to weather economic shocks and benefits of scale help them to 13.2% in FY 2019 from an average of 10% over the three provide banking services at a relatively lower cost. Over the previous years. years, various committees on the financial sector such as the Indian banks had seen a large increase in non-performing Narasimham Committee (1998), the Leeladhar Committee loans over the years. In order to ensure a faster resolution (2008) and the Nayak Committee (2014) have recommended of non-performing loans, the government implemented a consolidation among banking sector and that of PSBs. new Insolvency and Bankruptcy Code (IBC). Under this During the year, the government announced first three-way mechanism, there have been a marked improvement in cash amalgamation of Vijaya Bank and Dena Bank with Bank of recoveries of the banking system at ` 98,493 crore in the Baroda as a step towards achieving the above objectives. period April to December 2018. The IBC process has resulted In terms of scale, the combined bank which came into in structural changes such as faster resolutions; higher operations from April 1, 2019, is now the second largest recoveries and improving credit culture which is positive for PSB in India. The consolidated bank has over 120 million+ the banking system in the long-run. customers across the globe through its network of 9,500+ The strategy adopted by the Government, RBI and PSBs branches and 13,400+ ATMs and 84,000+ employees. Our for recognition, provisioning, resolution and recovery of non- combined business mix now stands at ` 15+ lakh crore with performing assets has commenced to yield results in the form market share of 6.4%. The amalgamation has provided an of declining stressed asset ratios and improvement in cash opportunity to build a world class banking institution for our recovery. The gross NPAs for PSBs are now beginning to see stakeholders and we are determined to seize it. a decline. RBI has projected that the gross NPA ratio for the Bank of Baroda – The Continuing Transformation SCBs would fall to around 10.3% in March 2019 from 11.5% in March 2018. The slippage ratio has declined from 7.6% The Bank has undertaken a comprehensive transformation in March 2018 to 4.1% in September 2018. The Provision journey centered around processes, products, platforms, Coverage Ratio (PCR) has also increased significantly from building people capabilities and improving compliance. The the levels in March 2018. details of the actions taken have been detailed out in last years’ annual report. Given that the technology evolution is Consolidation in Indian Banking Industry an ongoing process, the transformation has to be a continuing Despite being the sixth largest economy in the world, India’s journey to ensure that the Bank remains competitive in the financial institutions lack scale and size on global scale. market place.

8 ‚š¡¸®¸ ˆÅ¸ ¬¸¿™½©¸ Chairman's Statement

The Bank therefore continues to make significant investments public sector banks. The capital adequacy ratio at 13.42% is in enhancing its IT backbone and creating cutting-edge digital above the regulatory requirements. platforms. The Bank has set-up twin state-of-the-art Centers Looking Ahead of Excellence for IT and Analytics & Artificial Intelligence. The future of banking lies in leveraging power of analytics, Given the transformation undertaken by the Bank over the years to build a Bank that is future ready, the amalgamation digitization and technology to provide world class banking ensures that the benefits of scale and size are available to services to clients. As we build a Bank of first choice for wider set of customers and stakeholders. With amalgamation the customers, we are also creating a learning organization becoming operative, the integration process is underway and our investment in enhancing the skills of our workforce with a detailed plan on customer, employee, IT and process continues. integration. We foresee this as an opportunity to build a world class institution for our customers, employees and other The government’s reform agenda is PSBs – Ease of Access stakeholders. As the Chairman of the Bank, I am happy to be and Service Excellence (EASE) program is also in-line with a partner in driving these efforts. this approach. I am happy to state that the Bank has been ranked 2nd in the implementation of the EASE reforms agenda of the Government. Jai Hind, The result of above strategy are reflected in the operating performance of the Bank. Our domestic credit growth at 14.2% is higher than the industry average. This has been achieved while ensuring improvement in operating efficiency Hasmukh Adhia and the margins. The provision coverage ratio with and Chairman without Technically Written Off (TWO) accounts at 78.68% and 67.64% respectively continues to be the highest amongst

9 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

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Dear Stakeholder, It is my pleasure to present before you the highlights of the Bank’s performance during the Financial Year 2018-19 (FY 2019). The details of the achievements and the various initiatives are provided in the Annual Report. Macro-Economic and Banking Overview After gaining momentum in 2017 and early 2018, global economic growth slowed down from the second half of 2018. Going forward, with waning fiscal stimulus in US and a weaker European economy, the global slowdown is expected to continue in 2019. A prolonged US-China trade war, a no- deal Brexit and rise in oil prices remain key risks to global growth. In this backdrop, the Indian economy continues to be an island of growth. It is one of the fastest growing economies and is well poised to emerge as the world’s 5th largest economy in the world in the near future. Structural reforms like GST, Aadhar, Direct Benefit Transfers, Insolvency and Bankruptcy Code (IBC), etc. are expected to provide impetus 36-D\DNXPDU to the economy. A spurt in investments is expected with the Managing Director and CEO government’s sustained efforts towards promoting affordable housing, the ‘Make in India’ campaign and the focus on building infrastructure. The GDP growth for FY 2020 is projected at 7.2% by RBI. and capital infusion, the credit growth of SCBs which was at around 10% during FY 2015-18 has improved to 13.2% in FY India further moved up 23 places reaching a rank of 77 on the 2019. World Bank’s ‘Ease of Doing Business Index’, 2018. Breaking into the top 50 during the year appears to be within reach now. Consolidation in the Banking Industry The banking sector, especially public sector banks, have been Consolidation of the public sector banks (PSBs) leading to facing multiple challenges including high NPAs, capital crunch fewer and stronger banks has been on government’s agenda. and low credit growth. The IBC was expected to provide To reap the benefits of scale and size, this year the government resolution to stressed assets within a defined time frame. announced the first three-way amalgamation of public sector Though the recoveries through IBC mechanism have been banks. Vijaya Bank and Dena Bank have amalgamated with large, the resolution has taken longer time than the stipulated Bank of Baroda w.e.f April 1, 2019. The amalgamated entity limit of a maximum of 270 days in most cases. The real benefits is now India’s second largest public sector bank with a wider of IBC in terms of lower delinquency and better recovery will geographical reach, 9,500+ branches, 13,400+ ATMs and be reflected over a longer period. It is critical to note that the 84,000+ employees, 120 million+ customers and a business implementation of IBC and the revised regulatory framework mix of ` 15 lakh+ crore. of resolution of stressed assets is of historic importance and The consolidation will be beneficial to both the customers will substantially improve corporate governance standards and the Bank. The customers will benefit from a wider and inculcate financial discipline in borrowers. RBI’s proposed product range which includes cash management solutions, public credit registry for aggregating information about supply chain financing, asset management, insurance borrowers from multiple agencies at one place will be another and investment banking supplemented by an enhanced major step which is expected to bring down delinquencies geographical reach. For the Bank, the amalgamation not only significantly. increases our market share but also offers long term benefits According to RBI, gross NPAs of SCBs are likely to fall to from realisation of revenue and cost and people synergies. 10.3% in March 2019 from 11.5% in March 2018. The The Bank’s Transformation Journey- Project Navoday slippage ratio has already declined from 7.6% as of March 2018 to 4.1% as of September 2018 and provision coverage As you are aware, the Bank embarked on a transformational ratio (PCR) has increased significantly. journey – ‘Project Navoday’ three years ago. Last year, I had detailed the strategic initiatives taken under various streams On the capital front, the Government has taken a major step of functions focused on optimising and centralising processes, in recapitalising the public sector banks. PSBs are far more building products, platforms and people’s capability to gain capitalised today than earlier. With improving asset quality the competitive edge. During the year, we consolidated the

14 ~±¡|}{j§i¡kj§¦~j§d|j§ Üj§¨Ù MD & CEO's Statement gains from the above initiatives. enables us to move towards data-driven decision making by leveraging big data technology and artificial intelligence The banking industry is undergoing a rapid technological based real-time analytics. change. Digital transformation and digitization of traditional banking activities is changing the banking landscape. We have also set up an IT Centre of Excellence (ITCoE) The transformation is a continuing journey to sustain which became operational during the year. It drives digital competitiveness. We, at Bank of Baroda, have adopted a transformation through new age digital technologies, a multi-pronged strategy to build the ‘Bank of the Future’ which pool of technology resources with varied IT and digital skills is centred around: and works in collaboration with the Fintech ecosystem to drive disruption. The ITCoE brings together a wide 1. Enabling employees to spend their disproportionate gamut of skill sets across core technology components, time with the customers: We are working towards this technology architecture and emerging technologies like by revamping the branch organization by centralizing block chain, robotics process automation, open API the back office processes to a Share Service Centre banking and business process management to improve (SSC); enabling multiple services on an assisted and our technology efficiency and to take new use cases to digitized mode through tablets and introducing more market at speed. straight through processes (STP). This would ensure that employees spend disproportionate part of their quality During the year, we have set up an Innovation Centre time with the customers on sales rather than spending it in collaboration with IIT Bombay which provides avenues on delivery processes. for developing novel solutions to the challenges and limitations faced by the banking industry today. The Our Shared Services Centre continues to add more and Centre is powered by a cohesive ecosystem of financial more back-office functions under its fold. The centralized institutions, academia, VCs, regulators, technology functions now include opening of deposit accounts, companies, corporates and government organizations. account management services, processing of mortgage- based retail loans, forex and trade finance operations, In January 2018, the Government had announced a reforms call centre, credit card operations and digital banking agenda for PSBs – Ease of Access and Service Excellence operations. (EASE) which comprised of 140 objectives and benchmarked metrics across 6 themes. The Bank’s transformation 2. Financial planning: We continue our focus on offering programme encompassed most of the action points of the of financial planning and wealth management services agenda. In the final rankings announced by the government, to our customer enabling them to meet all their needs your Bank was placed 2nd in the EASE Index ranking. towards wealth protection, transaction and leveraging requirements, banking product requirements like for Financial Performance savings, insurance, asset purchase, etc. under one A snapshot of the Bank’s performance during FY 2019 is as stop to garner a higher share of valet of customers and under: increasing the fee income. Deposits Growth 3. Banking the eco system: Recognizing that the digital disruption is leading to platform based eco systems, Total deposits grew by 8.0% while growth in domestic we are working towards provision of enterprise scale deposits was 10.9%. Total deposits and total domestic marketplaces for customers to make the Bank as one-stop deposits as on March 31, 2019 were ` 6,38,690 crore and shop for product discovery and transaction enablement. ` 5,17,966 crore respectively. Accretion to global CASA The development of agri-digital platform named ‘Baroda deposits during the year was ` 12,051 crore while domestic Kisan’ to provide solutions for all types of agriculture CASA deposits increased by ` 16,081 crore registering requirements and number of Fintech alliances entered by a growth of 5.7% and 8.4% respectively. Percentage of the Bank are examples towards enabling the eco system. domestic CASA deposits was 40.23%. The Bank has taken a number of steps to ensure sustained growth of these 4. Mobility platforms: The Bank is working towards deposits. We have enhanced the gamut of our offerings and enablement of multiple services on mobile in self-service optimised our processes. We launched new products like cash mode and on an assisted mode through tablets. This management and differentiated wealth management services strategy of “Bank-in-a-Box” would enable digitally savvy for various customer segments. We have digitised processes customers to effectively transact from the comfort of their like opening of accounts through tablets and taken multiple homes whereas the tablets ensure door-step delivery of steps including provision of door-step banking services, banking services. opening of three-in-one trading accounts, revamping of our 5. Analytics and Artificial Intelligence (AI): Data mobile banking app, launch of m-passbook, launch of mobile science and machine learning have profound impacts app for wealth management, strengthening our e-payments on businesses and are rapidly becoming critical for products (RTGS,IMPS,UPI), promoting POS and Bharat QR differentiation. To benefit from the emerging technologies codes, tie-up with multiple payment aggregators, introducing in this field, we have set up an Analytics and Artificial differentiated debit cards and rebranding our credit cards Intelligence Centre of Excellence (A & AI CoE) which among others.

15 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Credit Growth Following a prudent approach, we continue to maintain a high provision coverage against these assets which provide The Bank registered double digit domestic credit growth for the strength to your Bank’s balance sheet. Provision coverage second consecutive year on the back of improved processes ratio (PCR) including technical write offs (TWO) as of March after execution of the transformation initiatives. Domestic 31, 2019 increased to 78.68% from 67.21% as of March 31, loan growth was 14.2% during FY 2019, one percentage 2018. PCR without TWO also improved to 67.64 % as of point higher than the industry growth. The growth momentum March 31, 2019 from 58.42% last year. These ratios are the was driven by retail loan growth of 24.2% and corporate loan highest amongst the public sector banks. growth of 15.5%. Expansion in the retail loan book was led by home loan and auto loan growth of 22.1% and 49.4% With an expectation of improved recoveries; resolutions of respectively. The building blocks for long-term growth of both some large NPA accounts anticipated to materialise through retail and corporate loans have been laid down. The Bank the NCLT process and with a high provision coverage ratio, is committed to playing a meaningful role in supporting the the outlook for FY 2020 appears to be positive on asset government’s objective of lending to priority sectors led by quality. MSME and agriculture. While loans under MSME grew to Operating Performance ` 55,455 crore as on March 31, 2019 from a level of ` 51,730 crore last year, the agriculture loan book stood at ` 56,623 The various steps taken towards transformation of processes crore as on March 31, 2019 as against ` 49,583 crore last and augmentation of products has led to a consistent year. improvement in the operating performance of the Bank. On consolidated basis, the operating profit increased by 14.4% International Business to ` 15,519 crore. The net profit was ` 1,100 crore. On To improve our operating margins, we adopted a two-pronged standalone basis, the operating profit increased by 12.3% to ` strategy for our international business. The first step was a 13,486.8 crore in FY 2019 against ` 12,005.6 crore in FY 2018 strategic review of our international presence which led to a driven by growth in both the net interest income (NII) and core reduction in the number of overseas branches from 106 to fee income. The NII grew by 20.4% to ` 18,684.0 crore with 100. The rationalisation exercise continues. The second part interest income on advances growing by 18.3%. This was on of the strategy was rebalancing of the international book by a the back of domestic credit growth of over 18% on an average reduction in the buyers’ credit portfolio to higher yielding loans. (14.2% on year-end figures). Total non-interest income was As a result, the net interest margin (NIM) of the international ` 6,090.8 crore against last year’s level of ` 6,657.2 crore, operations improved to 1.71% in FY 2019 from 1.10% in FY despite a reduction of ` 888.1 crore in treasury gains on 2018. account of adverse interest rate scenario. Core fee income increased by 10.0%. The operating expenses increased The volume of international business declined on account by 11% while cost-to-income ratio marginally improved to of transfer of retail business of UK operations aggregating 45.56% for FY 2019 as against 45.87% last year. ` 12,395 crore to the wholly owned subsidiary which became operational from December 17, 2018; rationalisation leading The improvement in operating performance is reflected in to closure of some of the branches reducing business by increased margins. Global net interest margin (NIM) improved ` 10,960 crore and reduction in buyer’s credit portfolio by to 2.72% in FY 2019 from 2.43% in FY 2018. NIM from ` 34,964 crore. Thus international deposits during the year domestic operations also improved to 2.93% from 2.88% last de-grew by ` 3,618 crore and the loan book declined by year. ` 4,560 crore. However, on like-on-like basis, the international During the year, the Bank provided `12,192.4 crore towards business grew by 21.92%. NPAs as against ` 14,211.7 crore in FY 2018 and posted a Asset Quality net profit of ` 433.5 crore in FY 2019 against a net loss of ` 2,431.8 crore in FY 2018 We believe that the net NPA level represents the real risk to the Bank. We continue to work towards our goal of reducing Capital the net NPA levels both amount wise and percentage wise. The capital adequacy ratio of the Bank at 13.42%, as of March During the year, the ratio of gross NPA and net NPA as well 31, 2019, continues to be above regulatory requirements. It as their absolute amount declined. The gross NPA and net was strengthened by a capital infusion of ` 5,042 crore by the NPA ratio improved to 9.61% and 3.33% as on March 31, Government of India and the raising of ` 1,956 crore as Tier-2 2019 from 12.26% and 5.49% during last year. The absolute bonds. The Tier-1 capital was 11.55% and Common Equity amount of net NPA at ` 15,609 crore was the lowest in the Tier-1 (CET-1) was 10.38%. The consolidated group capital last over three years. This should be viewed in the context of adequacy ratio was higher at 14.52%. Going forward, Bank consolidated operating profit of the Bank at ` 15,519 crore for is confident about generation of organic capital to meet the FY 2019. credit requirements of its customers during the year. Recoveries and upgrades during the year were higher at ` The Way Forward 8,759 crore from ` 5,443 crore last year. Recoveries from technically written off accounts were also higher at ` 832 crore The recent elections have led to the formation of a stable compared to ` 621 crore last year. government at the centre. The government is expected to

16 ~±¡|}{j§i¡kj§¦~j§d|j§ Üj§¨Ù MD & CEO's Statement carry forward the reforms agenda. It will continue to focus on I would like to acknowledge and thank the Chairman of the building infrastructure. Higher spending on roads, railways, Board Shri Hasmukh Adhia as well as the outgoing Chairman airports, waterways and housing will boost the economy Shri Ravi Venkatesan and all the members of the Board for and provide economic opportunities for citizens to grow and their valuable support, guidance and inputs to the management improve their income levels. While the global economy is likely in all our endeavours. I also thank the Department of Financial to remain muted on the back of the ongoing trade dispute Services, Ministry of Finance and Reserve Bank of India for between US and China, the domestic economy should benefit their support and guidance from time to time. I acknowledge from the government’s investment momentum. In addition, the and thank all our employees for their hard work, dedication government’s boost to rural India in the form of direct benefit and commitment. At Bank of Baroda, we look forward to your transfer will give an impetus to consumption. continued patronage, support and goodwill as we march ahead on our quest for excellence. We believe that the Bank is well poised to take advantage of the investment and consumption demand. With a wider geographical and customer reach following the amalgamation, introduction of new products, reduction in turn-around time and focus on digitisation, the Bank is uniquely positioned to grow and gain market share. Our endeavour is to build P S Jayakumar a future-ready, world-class banking institution that creates Managing Director and CEO value for all its stakeholders.

17 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

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37 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

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39 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

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40 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report

DIRECTORS’ REPORT

Your Directors have pleasure in presenting the One Hundred and Eleventh Annual Report of your Bank with the audited Balance Sheet, Profit & Loss Account and the Report on Business and Operations for the year ended March 31, 2019 (FY 2019).

Financial Performance A snapshot of the Bank’s financial performance is as below: I) General Reserve (2431.8) 0 ` in crore II) Special Reserve u/s 36 (I) (viii) of the 0 182.1 Growth Particulars 31.03.18 31.03.19 Income Tax Act 1961 (%) Proposed Dividend 0 0 Deposits 5,91,314.8 6,38,689.7 8.0% ` in crore of which- Domestic 4,66,973.8 5,17,966.6 Deposits 10.9% Key Performance Indicators 31.03.18 31.03.19 International Deposits 1,24,341.0 1,20,723.2 (2.9%) Average Cost of Funds (%) 4.56 4.83 Domestic Deposits 4,66,973.8 5,17,966.6 10.9% Average Yield (%) 6.84 7.28 of which- Current Average Interest Earning Assets 6,37,987.0 6,86,743.0 31,193.1 34,327.6 Average Interest Bearing Account Deposits 10.1% 6,16,243.9 6,48,495.6 Savings Bank Deposits 1,61,130.0 1,74,076.2 8.0% Liabilities CASA Deposits 1,92,323.1 2,08,403.8 8.4% Net Interest Margin (%) 2.43 2.72 Domestic CASA to Cost-Income Ratio (%) 45.87 45.56 41.2 40.2 Return on Average Assets Domestic Deposits (%) (0.34) 0.06 Advances 4,27,431.8 4,68,818.7 9.7% (ROAA) (%) of which- Domestic Return on Equity (%) (7.64) 1.18 3,24,238.5 3,70,185.0 Advances 14.2% Book Value per Share (`) 120.28 138.42 International Advances 1,03,193.3 98,633.8 (4.4%) Basic EPS (`) (10.53) 1.64 Total Assets 7,19,999.8 7,80,987.4 8.5% The benefit of structural changes undertaken by the Net Interest Income Government and Reserve Bank of India (RBI) finally bore 15,521.8 18,683.8 (NII) 20.4% fruit in FY 2019. The implementation of the Insolvency and Bankruptcy Code (IBC) has led to improvement in cash Other Income 6,657.2 6,090.9 (8.5%) recovery in the banking system. In addition, the ratio of non- of which-Fee Income 3,249.7 3,576.1 10.0% performing loans to advances for Scheduled Commercial Forex Income 909.2 693.2 (23.8%) banks (SCBs) has also started to come down and now stands Trading Gains 1,877.6 989.5 (47.3%) at 10.8% as on September 2018 from 11.5% as on March Recovery from PWO 620.7 832.0 34.0% 2018. The steady uptick in credit growth during the year in NII + Other Income 22,179.0 24,774.7 11.7% conjunction with decline in non-performing loans implies Operating Expenses 10,173.4 11,288.0 11.0% underlying improvement in the operating performance of the Operating Profit 12,005.6 13,486.8 12.3% banking system. However, deposit growth continues to remain a challenge. Banks have raised interest rates on deposits to Provisions 14,796.4 12,788.7 (13.6%) mobilise them and this will lead to higher inflow of resources of which- to the banking system. Provisions for NPAs & 14,211.7 12,192.4 (14.2%) Domestic deposits of the Bank increased by 10.9% in FY 2019 Bad debts written off compared with an increase of 6.1% in FY 2018. Domestic credit Profit Before Tax (2,790.7) 698.2 growth was above industry growth at 14.2% which led to a 20.4% Provision for Tax (358.9) 264.6 increase in net interest income (NII). Both domestic as well as Net Profit (2,431.8) 433.5 international margins expanded. The net interest margin (NIM) Appropriations/ improved from 2.43% to 2.72% in FY 2019. The cost to income Transfers ratio decreased marginally to 45.56%. Statutory Reserve 0 108.4 The Bank posted an operating profit of ` 13,486.8 crore Capital Reserve 0 210.4 registering an increase of 12.3%. Total provisions (other than Revenue and Other tax) and contingencies decreased by 13.6% and provisions Reserves for NPAs reduced by 14.2%. The Bank posted a net profit of

41 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

` 433.5 crore. hitherto driving growth in the larger part of the year is also seeing a slowdown now as both external and domestic demand seems Capital Adequacy Ratio (CAR) to have slowed down. Construction is the only bright spot on the Ratios in % back of higher spending by state governments. 31.03.18 31.03.19 With growth coming off, retail inflation has also fallen to 3.4% in Capital Adequacy Ratio – FY 2019 as compared to 3.6% in FY 2018. This was led by benign 12.13 13.42 Basel III food inflation at around 0.2% in FY 2019 compared to 1.8% in FY 2018. Core inflation on the other hand remained elevated at CET-I 9.23 10.38 5.8% in FY 2019 as against 4.6% in the previous year. Higher oil Tier – I 10.46 11.55 prices in H1FY 2019 and stickiness in the health and education Tier – II 1.67 1.87 components drove the core CPI higher. However, core inflation The Capital Adequacy Ratio (CAR) and CET-1 of the Bank stood has been steadily coming off towards the end of the year. at 13.42% and 10.38% respectively as on March 31, 2019. The Domestic consumption has seen a cyclical slowdown with drop in consolidated group capital adequacy ratio was higher at 14.52%. auto sales and non-oil-non-gold and electronic imports. However, The Bank’s net worth as of March 31, 2019 was ` 36,620 crore the announcement of measures such as “Pradhan Mantri Kisan comprising of paid-up equity capital of ` 530 crore, reserves of Samman Nidhi (PM-KISAN) and expected upturn in government ` 31,047 crore (excluding revaluation reserves, foreign currency spending in the next quarters may provide the requisite boost translation reserves and other intangible assets) and share to the economy. In addition, the government’s effort towards application money pending allotment worth ` 5,042 crore. The providing affordable housing and building infrastructure are also book value of the share (FV ` 2) was ` 138.42. likely to support investment demand in the economy in the near Dividend term. Bank is not eligible to pay dividend for the financial year 2018- Developments in Indian Banking 19 on account of not meeting the eligibility criteria stipulated With growth and inflation coming-off, RBI has reduced policy by RBI for this purpose. rates. The anticipation of change in stance and reduction in policy rates did lead to decline in 10-year government bond yields which Management Discussion and Analysis had increased substantially in H1FY 2019 and had peaked at Global Economy 8.18%. This was driven by increasing liquidity deficit on the back of FPI outflows. Higher oil prices and NBFC liquidity woes also The global economy slowed down to 3.6% in Calendar Year contributed to upward pressure on yields. As a result, the RBI (CY) 2018 after growing at 3.8% in CY17. The slowdown undertook durable liquidity infusion in the form of Open Market was markedly visible in the second half of the calendar year. Operation (OMO) purchases of ` 2.99 lakh crore and US$ swap. According to IMF, global growth is likely to slip further to 3.3% These measures coupled with the slowdown in global growth and in CY19, before picking up to 3.6% in CY20. The dip in global the dovish outlook by major global central banks led to decline growth was largely on account of a slowdown in growth in in yields in the latter half of FY 2019. Europe and China. The US housing sector has also seen some Credit growth of the banking system continued to improve in the deceleration after yields increased as a result of successive year, from 10.0% as on March 31, 2018 to 13.2% as on March rate hikes by US Federal Reserve. Other factors that have 31, 2019. Deposit growth that was lagging behind also showed contributed to the global slowdown are Brexit, imposition of an improvement to 10.0% as in March 2019 compared with 5.8% tariffs by US and China and run-off of US fiscal stimulus. as in March 2018. This has been possible due to higher interest According to IMF, growth is likely to pick-up in H2CY19 on the rates offered by banks. back of accommodative monetary policies by major central The increase in credit growth is driven by government’s banks, prospects of a positive US-China trade deal and recapitalisation to the extent of ` 1.06 lakh crore in Public Sector China’s fiscal stimulus to boost domestic consumption. Growth Banks (PSBs) in FY 2019. The structural reforms undertaken in Emerging Market and Developing Economies (EMDEs) is by the government and RBI are also visible in underlying expected to rebound to 4.8% in CY20 from 4.5% in CY18 and improvement in stressed assets of the banking system. RBI 4.4% in CY19. Advanced Economies (AEs) will continue to has projected that the gross NPA ratio for the SCBs would fall witness modest growth which is expected to level at 1.7% in to around 10.3% in March 2019 from 11.5% in March 2018. The CY20 versus 2.2% in CY18 and 1.8% in CY19. Downside risks slippage ratio has declined from 7.6% in March 2018 to 4.1% in to global growth may emerge from escalating trade tension September 2018. The Provision Coverage Ratio (PCR) has also between US and other countries, a no-deal Brexit and geo- increased significantly from the levels in March 2018. All these political risks driving oil prices higher. indicators point to a much stronger recovery in the banking system in the coming years. Indian Economy Another significant reform in the year was further consolidation The Indian economy witnessed a growth of 7% in FY 2019, down of the banking system which a number of Committees have from 7.2% in FY 2018. This is the slowest pace of growth in over recommended in the past from Narsimham Committee to Nayak 5 years. The drop is primarily on the back of a slowdown in the Committee. The Government moved in this direction by way of a agriculture sector which is expected to clock only 2.7% growth three-way merger between Bank of Baroda and Dena Bank and in FY 2019, much lower than the 5% growth in FY 2018. The Vijaya Bank. With this amalgamation, Bank of Baroda has now area sown under both Kharif and Rabi declined due to spatially become the second largest PSB in the country. distributed and below normal rainfall. Manufacturing which was In view of the reforms undertaken by the government and RBI

42 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report not only for resolution and recovery of non-performing assets but was awarded by the Bombay Stock Exchange (BSE) for being also a digital driven lending push and consolidation, the banking a top performer in the primary market segment of IPO/FPO system is likely to see underlying improvement in profitability in bids for FY 2018 . the medium-term. Credit Expansion: Business Performance During FY 2019, the Bank continued to gain market share with The highlights of business performance of the Bank are as a well-diversified credit portfolio. Domestic advances of the below: Bank increased by 14.2% during the year compared with an Resource Mobilisation and Credit Expansion industry growth of 13.2%. The growth was led by retail and was well spread across other business verticals. Retail loan growth ` in crore was 24.2%, led by home and auto loans at 22.2% and 49.4% respectively while corporate loan growth was 15.6%. The ratio Particulars 31.03.18 31.03.19 Growth of retail loans to total domestic loans increased from 19.6% to (%) 21.5% during the year. The international loan book declined by Deposits 5,91,314.8 6,38,689.7 8.0% 4.4% on account of continued focus of the Bank on re-balancing of which- Domestic of assets and decline of Buyers’ Credit book. 4,66,973.8 5,17,966.6 Deposits 10.9% The total assets of the Bank increased by 8.5% from ` 7,19,999.8 crore on March 31, 2018 to ` 7,80,987.4 crore as International Deposits 1,24,341.0 1,20,723.2 (2.9%) on March 31, 2019. Domestic Deposits 4,66,973.8 5,17,966.6 10.9% Operating Performance: of which- Current 31,193.1 34,327.6 The highlights of operating performance of the Bank are as Account Deposits 10.1% below: Savings Bank 1,61,130.0 1,74,076.2 (` in crore) Deposits 8.0% Particulars 31.03.18 31.03.19 Growth CASA Deposits 1,92,323.1 2,08,403.8 8.4% (%) Domestic CASA 41.2 40.2 Interest Earned 43,648.5 49,974.1 14.5% Deposits (%) Interest Expended 28,126.8 31,290.3 11.2% Advances 4,27,431.8 4,68,818.7 9.7% Net Interest Income (NII) 15,521.8 18,683.8 20.4% of which- Domestic 3,24,238.5 3,70,185.0 14.2% Advances Other Income 6,657.2 6,090.9 (8.5%) of which- Fee Income 3,249.7 3,576.1 10.0% International Advances 1,03,193.3 98,633.8 (4.4%) Forex Income 909.2 693.2 (23.8%) Total Assets 7,19,999.8 7,80,987.4 8.5% Trading Gains 1,877.6 989.5 (47.3%) Domestic CASA balances registered a growth of 8.4% over the previous year. The CASA Ratio was maintained well above Recovery from PWO 620.7 832.0 34.0% 40.0% for the financial year. Term Deposits posted a growth Operating Income 22,179.0 24,774.7 11.7% of 12.7% which is almost twice as much as the previous year. (NII + Other Income) In order to augment the CASA portfolio, the Bank has opened Operating Expenses 10,173.4 11,287.9 11.0% 94,52,510 new CASA accounts during FY 2019. The Bank has taken several steps to improve its processes and strengthen Employee Expenses 4,606.9 5,039.1 9.4% the product proposition to meet the increasing requirements of Other Operating Expenses 5,566.5 6,248.9 12.3% customers. The account opening process for savings account Operating Profit 12,005.6 13,486.8 12.3% has been digitised through tablets leading to a turnaround time of a few minutes. More than 70% accounts (Non FI) are Provisions 14,796.4 12,788.7 (13.6%) opened digitally through tablets. The Bank has also initiated of which- 14,211.7 12,192.4 (14.2%) issuance of non-personalised debit cards. The Bank is planning Provisions for NPAs & Bad to commence opening of current accounts through tablets. debts written off The Bank also introduced new segmented offerings for women, Provision for Standard (369.0) (35.49) senior citizens, expats and the salaried class to augment Advances deposits. These schemes have received a encouraging Provision for Depreciation on 768.2 138.5 (82.0%) response from our customers. Bank of Baroda has also rolled Investment out Doorstep Banking Service for retail customers on a pilot basis. Other Provisions 185.5 493.3 166.1% The Bank has launched online opening of Demat and Trading Profit Before Tax (2,790.7) 698.2 Account this year and has become a pioneer among other Provision for Tax (358.9) 264.6 scheduled Banks to extend such facility to the customers. In Application Supported by Blocked Amount (ASBA), the Bank Net Profit (2,431.8) 433.5

43 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Key Performance Indicators 31.03.18 31.03.19 help in rapidly scaling its capabilities in these areas. The Bank Cost of Deposits - Global (%) 4.50 4.68 aims to build platforms wherein customers can do a range of transactions online and have access to information at their Cost of Deposits - Domestic (%) 5.48 5.33 fingertips. Bank of Baroda is creating a learning organisation Cost of Deposits - International (%) 1.33 1.89 and investing in enhancing the skills of its workforce. The Bank Yield on Advances – Global (%) 7.13 7.65 also emphasises on centralisation and digitisation of operations Yield on Advances (Domestic) (%) 8.87 8.67 to ensure that employees become more focused on customer Yield on Advances (International) (%) 2.70 4.12 facing roles. Net Interest Margin – Global (%) 2.43 2.72 Net Interest Margin – Domestic (%) 2.88 2.93 Project Navoday – The Bank’s Transformation Journey Thus Far Net Interest Margin – International (%) 1.10 1.71 Cost-Income Ratio (%) 45.87 45.56 For achieving medium and long-term strategic goals, the Project Return on Average Assets (ROAA) (%) (0.34) 0.06 Management Office (PMO) of Project Navoday tracks all multi- Return on Equity (%) (7.64) 1.18 dimensional initiatives undertaken across Business Units and Support Functions such as IT, HR, Operations & Services. The interest income of the Bank increased by 14.5% from ` 43,648.5 crore in FY 2018 to ` 49,974.1 crore in FY 2019. The As part of the transformation journey, in addition to the strategic yield on advances increased to 7.65% from 7.13%. The yield on initiatives taken under various businesses, a pivotal role domestic advances was 8.67% during FY 2019 against 8.87% is being played out by Shared Services Centre in terms of during FY 2018. The reduction was on account of underlying centralisation and digitisation which eventually leads to better change in credit mix to high quality borrowers. The yield on customer experience in the form of lower turnaround time for international loan book increased reflecting the run-off of low customers. The Bank is making a paradigm shift in facilitating margin products such as Buyers’ Credit. the operating units to shift focus towards a ‘Sales and Service’ model. Deposit accounts are opened with Tablets in digital mode Total interest expenses stood at ` 31,290.3 crore in FY 2019 and processing of loans is being done in Centralised Processing as against ` 28,126.8 crore in FY 2018. The domestic cost of Centres. Back-office work has moved away from branches deposits decreased to 5.33% in FY 2019 from 5.48% in FY 2018. which opens up time for branches to focus on more productive The cost of deposits in the international book increased from activities such as sales and marketing. The Bank benefits in 1.33% to 1.89% in line with the global interest rate environment. the form of higher productivity and a better control environment. NII of the Bank increased by 20.4% from ` 15,521.8 crore during FY 2018 to a level of ` 18,683.8 crore during FY 2019. The NIM Strategic tie-ups with market players in the field of agriculture, improved from 2.43% to 2.72% during FY 2019. The domestic E-commerce and Fintech are enabling the Bank to augment and international NIM improved from 2.88% to 2.93% and 1.10% its business besides improving market share. Strategic to 1.71% respectively. Other income of the Bank decreased by rationalisation of International Operations along with fungible 8.5% to ` 6,090.8 crore on account of decline in treasury gains credit limits have paved the way for more profitable operations by 47.3% to ` 989.5 crore. Recovery from written-off accounts across overseas territories. was higher at ` 832 crore registering an increase of 34%. A revamped Rewards, Recognition and Employee engagement Operating expenses increased by 11.0% to ` 11,287.8 crore framework reinforces the philosophy of ensuring that employees in FY 2019. Employee cost increased by 9.4% during the year grow with the Bank. The Bank has put in place customer to ` 5,039.1 crore and other operating expenses increased by segmentation with a focus on hyper personalisation to cross- 12.3% to ` 6,248.9 crore. The operating profit of the Bank grew sell products. Centres of Excellence in IT and Analytics are by 12.3% to ` 13,486.8 crore during FY 2019. Total provisions driving technological adoption and cutting-edge tools to improve (other than tax) and contingencies decreased by 13.6% to ` business performance. 12,788.7 crore while provision for NPAs decreased by 14.2% The Bank is leveraging the impetus gained to widen the spectrum to ` 12,192.4 crore in FY 2019. As a result, the Bank posted of these initiatives in the backdrop of the amalgamation w.e.f. a net profit of ` 433.5 crore in FY 2019 against a net loss of ` 1st April 2019. 2,431.8 crore in FY 2018. Corporate Credit Medium and Long-Term Strategy of the Bank Corporate credit in the bank is serviced through 10 Corporate The Bank continues to pursue a multi-pronged strategy to Financial Services (CFS) branches and 4 Emerging Corporate build a future-ready, world class banking institution. The Bank Branches which manage about 80% of the total corporate credit believes in the power of data, digitisation and technology to portfolio of the bank. The corporate credit portfolio of the Bank transform banking. Bank of Baroda continues to invest in not increased by 15.6% during FY 2019 to ` 185,943 crore. only enhancing its IT backbone but also in creating cutting-edge During the year under review, the corporate credit portfolio digital platforms and partnering with leading technology players reaped the benefits of transformation initiated in preceding and/or fintech startups to provide the next generation of products years. With this revamp in approach towards corporate credit and experience to customers. The Bank has established two delivery, the risk profile of the portfolio further improved during state-of-the-art Centres of Excellence for Analytics and IT to the FY 2019 as observed in the rating distribution of domestic

44 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report credit portfolio as below: MSME Credit Credit 31.03.2017 31.03.2018 31.12.2018 The Bank targets the MSME sector through 42 dedicated SME Rating Processing Cells named ‘SME loan factories’, and a wide Distribution* network of branches servicing the MSME segment with a target A & above 39.27% 52.37% 60.21% market approach. BBB 15.77% 14.90% 13.82% Supporting the Government's efforts under MUDRA scheme Below BBB 21.80% 19.72% 15.86% on employment generation, the Bank lent ` 6,023 crore to the Unrated 23.16% 13.01% 10.11% sector. The Bank has also extended credit of ` 1,154 crore to *External rating distribution of advances above ` 5 crore. SC, ST and women entrepreneurs under the Stand-up India programme since the launch of the scheme. The MSME credit Target Market approach: FY 2020 portfolio of the Bank increased to ` 55,455 crore as on March During the year, the target market approach has been further 31, 2019, from ` 51,730 crore as on March 31, 2018. The sharpened based on the objectives of improving credit Bank has added 93,994 new MSME customers to its base in performance, ensuring profitable deployment of capital, FY 2019. To provide access to working capital to MSMEs at optimising overall yield and profitability and increasing bank’s competitive rates on Trade Receivables electronic Discount market share in the performing and growing sectors. The System (TReDS), the Bank has onboarded itself on all the three structural framework adopted for the same is as follows: TReDS platforms. As on March 31, 2019, the TReDS business accounted for ` 223 crore. • Identification of industries / sectors based on industry outlook i.e. the combined output of various industry parameters In support of the Government’s initiative to augment MSME units by speedy sanction of MSME loans through the including market size, growth indices, demand-supply ‘PSBloansin59minutes’ portal, the Bank was ranked first, out outlook, cost structure, competition, financial performance, of all PSBs, as on March 31, 2019. To ease working capital govt. policies and investment outlays. constraints of MSME, arising out of GST implementation, the • Sector-wise business plan for target market lending based Bank has devised a special product for financing against GST on exposure caps, existing exposures, and further appetite receivables for the MSME segment. The supply chain business for fresh acquisitions for the current financial year. has an outstanding book of ` 452 crore as on March 31, • Identification of corporates with defined pre-selection criteria 2019 and is backed by a fully digitised supply chain financing such as ratings, financial parameters i.e. revenue, profit product which has provided a new vehicle for sourcing of after tax (PAT), net worth, gross capital, financial ratios, MSME customers, specifically vendors and suppliers of anchor corporates. viz. leverage ratio (debt-equity ratio, Net Debt / EBITDA, profitability ratio (Net profit/Sales, gross profit/Sales), In addition, the Bank has 6 Area Specific Schemes for financing operating profit margin, cash accrual / debt etc. and due SME clusters. The total number of products increased to 26 diligence. including specialised products to cater to MSME units during the last financial year, denoting the thrust of the Bank on this • Precise Account Planning with structured calling plans for segment. We have also adopted a new pricing strategy named meetings, identifying business opportunities, approval and CIBIL MSME Rank (CMR) based pricing for MSME enterprises closure. with credit exposure above ` 25 lakh and up to ` 5 crore, which • Execution of the business plan under target market approach enables MSME businesses to have access to bank finance at through dedicated relationship managers across the Bank. competitive rates starting from as low as MCLR plus 0.05%. Under the above approach adopted by the Bank, nine sectors To reach out to newer business segments and to deliver the benefit of lower interest rates in comparison to NBFCs, the with 476 corporates were identified and 121 leads were Bank is co-originating with different NBFCs and entered into generated out of which 87 leads amounting to ` 33,127 crore co-origination arrangements with certain NBFCs. were converted into business. Moving ahead with this strategy, 809 corporates (including mid-corporate clients) have been The Bank has commissioned a dedicated team for financing listed as target in FY 2020. commercial vehicles and construction and mining equipment for the MSME segment. For this purpose, Bank has entered into With a view to provide enhanced customer experience for a strategic alliance with Tata Motor Finance Ltd. for capturing International Trade Customers, and also to ensure seamless new business in the commercial vehicles segment. Further, transactions management from initiation of requests to the Bank has on-boarded clients under a new scheme ‘Value successful execution, the Bank launched a fully digitised and Chain Finance’ which is specifically designed for customers integrated trade system - BarodaINSTA (Baroda Integrated with maximum turnover of up to ` 2,000 crore. Solution for Trade Finance Access) which is compliant with To ensure better reach to MSME market segments, the Bank SWIFT. BarodaINSTA provides secure online access via a front- has established a separate specialised team dedicated to sales end portal to clients for initiating transaction requests resulting in and loan processing, deployed at SME Loan Factories. To operational consistency and better governance with enhanced ensure consistency in underwriting, faster turnaround time and security and validations. It is a user-friendly application with timely collections, the Bank has implemented centralisation of attractive and convenient dashboards, providing real time MSME loan processing through Integrated SME Loan Factory tracking of transactions for customers with multiple features like (ISMELF) at 2 centres viz. Mumbai and New Delhi. The Bank comprehensive MIS, reports, courier tracking, calendar (for due is also participating in MSME schemes such as ‘One District date maintenance), etc. One Product’ promoted by the Uttar Pradesh Government to

45 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 ensure higher penetration. Government Schemes Processing The Bank continues to be a leader in lending to the agriculture Cells (GSPC) have been set up across India to enable seamless sector which received an impetus with the Government’s target processing of Pradhan Mantri Mudra Yojana, Standup India, of doubling the income of the farmers by FY 2022. The Bank has Pradhan Mantri Employment Generation Programme, National moved beyond granting simple farm credit, to a more diversified Urban Livelihoods Mission and State-specific Government rural lending strategy by focusing on new products across sponsored schemes. Under the Support & Outreach Campaign rural customer segments like farm mechanisation, horticulture for MSMEs, a GoI initiative, launched on November 2018, loans, warehouse receipt financing, food and agro-processing the Bank was assigned 100 districts and 100 days with key and adopting a community-based lending model for the small deliverables. farmers and communities. Retail Credit During the year, Bank issued 2.29 lakh Kisan Credit Cards. Baroda Kisan RuPay Card, an ATM enabled smart card, was The Bank has been undertaking a number of transformational issued to 13.46 lakh farmers. As a part of its microfinance initiatives to improve its market share in retail segment. Foreseeing the importance of retail lending in the economy, initiatives, the Bank linked 26,630 Self Help Groups (SHGs) the Bank adopted a focused approach in the retail lending by granting loans amounting to ` 482.69 crore. To facilitate space since April 2016 and considerably increased the retail credit linkages of Farmer Producer Organisations (FPOs), the book from ` 68,765 crore in March 2018 to ` 85,390 crore as Bank tied up with the Small Farmers’ Agribusiness Consortium on March 31, 2019. (SFAC) for providing Credit Guarantee for collateral free loans and also as a preferred bank for the state of Maharashtra. The The initiatives include redesigning of products and processes to total Agricultural Advances as on March 31, 2019 were well enhance the customer satisfaction by allowing higher eligibilities, lower pricing and standardised processing. Some of the steps above the regulatory requirements. undertaken by the Bank are as mentioned below. The Bank’s agriculture and rural strategy continues to focus • Risk Based Pricing on developing an ecosystem of alliances and partnerships with multiple players with the objective of increasing farm • Setting up of Centralised Processing Cell at Gandhinagar productivity; enhancing the income of farmers and serving the and Hyderabad rural economy. • Empanelment of Direct Selling Agents (DSAs) The Bank is developing an agri-digital platform – ‘Baroda • Empanelment of Contact Point Verification (CPV) Kisan’. The platform in partnership with strategic players aims agencies to become a one-stop shop to cater to all major needs of a • Implementation of Loan Lifecycle Processing Systems farmer ranging from notifications, weather forecast information, • Focused and strategic approach on takeovers crop health, soil moisture, pest infection information, mandi • Implementation of a pre-approved credit programme prices crop specific advisory, input buying (like seeds, fertilizers, pesticides), equipment renting advisory services and innovative • Setting up of a dedicated call centre for collections financing options for sale of agriculture produce. The Home Loan book has grown by 22.2% to ` 54,612 crore as on March 31, 2019. The continued efforts on increasing Bank of Baroda observed a Kisan Pakhawada’ from October Auto Loans has resulted in a growth of 49.4% with an increase 1, 2018 to October 16, 2018 and celebrated the last day in market share from less than 1% to approximately 3%. The of the fortnight as Baroda Kisan Diwas to coincide with the disbursement of Auto Loans has also grown by 169.2%. Fresh International Food Day. In FY 2019, a total of 8,018 choupals sanctions for Education Loans have grown by 106.8%. The were covered with participation of 2,38,974 farmers through target given by the Ministry for Education Loans has been 1,621 Kisan Melas, 339 Health Camps (soil / animal / farmer), surpassed by 48%. In case of mortgage loans, the book has 4,884 farmer meetings and 310 financial literacy camps. grown by 74.3%. The Bank has been awarded the Inclusive Finance India Award Rural and Agricultural Lending for Innovation and Inclusiveness in Priority Sector Lending by The Bank has a network of 1845 branches in rural and 1546 Bank (Public Sector) for 2018 by Access Assist. The Bank also branches in semi-urban areas which are leveraged for priority received 4 awards including the Runner up in Overall Best sector and agriculture lending. During FY 2019, the Bank Social Bank under the Large Banks category during the 14th opened 22 new rural and semi-urban branches. The Bank’s ASSOCHAM Annual Banking Summit cum Social Banking agriculture advances grew by 14.2% from ` 49,583 crore as on Excellence Awards - 2018. March 31, 2018 to ` 56,623 crore as on March 31, 2019. The Priority Sector Lending Bank achieved all mandatory targets under Agriculture, Priority Priority sector advances of the Bank stood at Rs.1,47,109 crore Sector, Small and Marginal Farmers (S&MF), Micro Enterprises, as of March 31, 2019. The Bank was well above the mandated Loans to Non-corporate Farmers and weaker sections of the levels of priority sector advances and its other sub-components. society during FY 2019 and earned a net commission of ` 33.0 Advances to SC/ST Communities crore by selling net Priority Sector Lending Certificates (PSLC) worth ` 7,700 crore. The outstanding advances to SC/ST communities went up from ` 5,765 crore as of March 31, 2018 to ` 7,212 crore as of March The Bank is the Convener of State Level Bankers’ Committee 31, 2019. The SC/ST communities accounted for 18.31% share (SLBC) in the states of Uttar Pradesh and Rajasthan and in total advances granted to weaker sections by the Bank. shoulders the Lead Bank responsibility in 48 districts across the country. Furthermore, special thrust is laid by the Bank in financing SC/ ST communities under various Government sponsored schemes

46 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report such as National Rural Livelihood Mission (NRLM), MUDRA 31.03.2018 31.03.2019 Loan, Start-up India and Stand-up India. During this year, the Bank entered into various tie-ups with State Rural Livelihood Pradhan Mantri Suraksha 59.52 90.37 Missions (SRLMs) in Tamil Nadu, Odisha, Chhattisgarh, Punjab Bima Yojana (in lakh) and Uttar Pradesh for providing finance to women SHGs to Pradhan Mantri Jeevan Jyoti 18.14 25.30 further the mission of women empowerment. The Bank also tied Bima Yojana (in lakh) up with SEWA for financing solar units for women salt workers Setting up Aadhaar Enrollment Centres (members of SEWA) in the Rann of Kutch, Gujarat. Banks, vide Gazette notification dated July 14, 2017 of Financial Inclusion (FI) Government of India, have been mandated to set up Aadhaar enrollment and update centres inside the branch premises The Bank has increased the FI coverage by deploying 15,356 with at least one centre in every 10 branches. Accordingly, the BC agents catering to 21,895 villages and other semi-urban and Bank has set up 608 Aadhaar enrollment centres as of March urban areas and also through 583 Branches in under-banked 31, 2019. areas across the country. Total number of Basic Savings Bank Performance of RRBs Sponsored by Bank of Baroda Deposit (BSBD) accounts under financial inclusion stand at The Bank has sponsored three Regional Rural Banks (RRBs): 372.6 lakh with an aggregate balance of Rs.12,690 crore as on Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan March 31, 2019. The number of zero balance accounts have Kshetriya Gramin Bank, and Baroda Gujarat Gramin Bank. The reduced from 11.53% in the previous year to 9.21% this year. aggregate business of these three RRBs rose to ` 62,298 crore The Bank has taken a number of initiatives to harness the power as of March 31, 2019 from Rs.55,063 crore as of March 31, 2018, registering a growth of 13.1%. The three RRBs together of digitisation to deepen financial inclusion in the year. posted a net profit of ` 208.61 crore during FY 2019 against ` • Digitised instant account opening through eKYC 208.55 crore in the previous year. The net worth of these RRBs authentication and Aadhaar seeding with PIN generation put together improved from ` 2,401.78 crore as of March 31, through tablets, account opening kiosks and business 2018 to ` 2,620.57 crore as of March 31, 2019. correspondent (BC) outlets with instant enrollment under International Operations Micro Insurance and debit card issuance. The Bank has 100 overseas branches/offices across 21 • Deployed micro and table-top ATMs in rural areas through countries comprising of 45 overseas branches in 13 countries, BCs and expanded the Business Correspondent using 54 branches of the Bank’s eight overseas subsidiaries and Information and Communication (BC-ICT) model by adding one International Banking Unit (IBU) in GIFT City (SEZ), Gandhinagar, Gujarat, India which deals exclusively in foreign 700 agents during the year. currency. In addition, the Bank has one Joint Venture viz. • Enabled increased utilisation of bank accounts, expansive India International Bank (Malaysia) Bhd. in Malaysia and one cash-in cash-out network comprising 15,356 BCs who use associate bank viz. Indo Zambia Bank Ltd. in Zambia with 30 8,823 PINPAD and 1,882 portable Micro ATM devices. branches. • Provision of 185 VSATs to BC agents functioning in grey During FY 2018 and FY 2019, the Bank has undertaken areas across the country. strategic rationalisation of its overseas presence based on a comprehensive evaluation framework. During the year, Bank FY 2019 Performance Highlights under Financial Inclusion closed down its Offshore Banking Unit at Bahamas, wholesale • 101.2% of target achieved in respect of total BC outlets. banking unit in Bahrain, and surrendered banking license of subsidiary at Ghana which had three branches. Further, Muttrah • 91.3% and 132.4% of targets achieved for BSBD account branch at Oman was merged with the Greater Muttrah branch opening and amount under the same through branches and Durban branch was merged with Johannesburg branch in respectively South Africa. The rationalisation of operations based on the • The Bank achieved 233.9% and 284.6% of the target set strategic review is continuing. for FY 2019 for BSBD account opening and amount under The Bank has presence in the world’s major financial centres the same through BC points respectively. of New York, London, Singapore, Brussels and Dubai. In the international arena, our Bank pursues a strategy of driving Highlights of Performance under Pradhan Mantri Jan Dhan growth and value by meeting the international banking Yojana (PMJDY) requirements of Indian corporates; catering to India linked The Bank had 300.83 lakh accounts under PMJDY as on March cross-border trade flows for Indian and locally incorporated 31, 2019, as against 239.29 lakh at the end of previous year, companies or firms and being the preferred Bank for an increase of 25.7%. The Bank’s market share in incremental NRIs/ Persons of Indian Origin. The Bank is continuously PMJDY accounts and outstanding deposits was 10.7% and consolidating and reorganising its International Operations in line with the new global environment and focused on 11.9% respectively. Outstanding balance in PMJDY accounts rebalancing the portfolio with a view to manage risks, shed was ` 9,312 crore as of March 31, 2019 as against ` 6,595 low-yield assets and increase profitability. crore at the end of previous year, an increase of 41.2%. RuPay As of March 31, 2019, the Bank’s total business from debit Cards issued under PMJDY accounts increased to 276.62 international branches was ` 2,19,356 crore and constituted lakh from 221.50 lakh. Aadhaar seeding in PMJDY accounts 19.8% of the global business. Total deposits were at ` 1,20,723 increased to 88.0% during the year from 83.9% last year. crore while net advances were ` 98,633 crore. It was a year of Coverage through Social Security Schemes consolidation for the international operations. The position of enrollment under social security schemes of the The total deposits were lower by 2.9% whereas total Government as on March 31, 2019 is as under: advances fell by 4.4%. The reduction in business is mainly on 47 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 account of rationalisation of the Bank’s overseas centres, UK Development Authority for the Achievement of the Targets subsidiarisation and run-off of Buyers’ Credit. under APY. Incorporation of Subsidiary in UK Wealth Management The Bank’s wholly owned new retail subsidiary at UK viz. Bank During the year, the Wealth Management Department has been of Baroda (UK) Ltd. has been operationalised with effect from at the forefront in providing investment and insurance services 17.12.2018. The retail business of the UK operations has shifted to our customers. The Bank’s flagship programme, ‘Baroda to the new subsidiary and wholesale business is retained under Radiance’ continues to cater to the requirements of High Net branch mode. The UK operations now comprise of 1 branch of Worth Individuals through a dedicated structure of relationship the Bank and 10 branches of subsidiary. managers. The Bank aims at providing best-in-class solutions Treasury Operations and services to its customers for which it is building digital The Bank operates its Treasury operations from a state-of-the- solutions. Some of the initiatives taken during the year are: art dealing room at its Corporate Office in Mumbai. The Treasury • 'Baroda Wealth Solution', a digital platform, is implemented is a prominent player in various markets e.g. Foreign Exchange, to enable seamless distribution of investment and insurance Interest rates, Fixed Income, Money Market, Derivative, Equity, products to all customers. This platform will also be Currency and Interest rate Futures and other alternate asset available to Bank’s customers in Mobile Banking and classes. The Bank is offering various services like interest rate Internet Banking. swaps, currency swaps, and currency options, forward contracts • Bank extended the coverage of the product 'Group Credit through authorised branches dealing in foreign exchange Life' and 'Group Criti Care' to its retail borrowers, covering across India. the credit risk in case of eventuality (life or critical illness). The treasury is responsible for managing the funds position of • Bank launched five health insurance products with the Bank and ensuring safety, liquidity and optimal yield on these portability and continuity benefits. This enables customers funds. It maintains Statutory Reserve Requirements and invests to migrate their health insurance policies to an insurer of in corporate bonds, commercial papers, equity, venture capital, their choice. mutual funds, etc. as a part of the fund management operations. Stressed Asset Management The total size of the Bank’s Domestic Investment Book as of March 31, 2019 stood at ` 1,72,412 crore. The share of SLR With an increase in non-performing loans over the years, the securities in total investments was 85.89%. The percentage of Bank has revamped its strategy to augment recoveries and SLR securities (unencumbered) to NDTL at March 31, 2019 reduce slippages. For this, the Bank has created a ‘Stressed was at 27.98%. Assets Management Vertical’, where all major and medium sized NPA accounts of 10 lakh and above and all SARFAESI The Bank demonstrated its capabilities in effectively dealing ` eligible accounts are handled by specialised units called with extreme adverse circumstances in the market. The Bank Stressed Assets Recovery Branches (SARB) set up at Zonal has been able to capitalise on the opportunities offered by yield and Regional level. The remaining accounts i.e. accounts movements. The Bank managed its portfolio efficiently and below 10 lakh are handled by respective branches with the maintained average yields on interest bearing investment for ` help of Business Correspondents and outsourced Call Centres. FY 2019 at 8.13% (including profit on sale). During FY 2019, the profit on Sale of Investment and Foreign exchange earnings Non-performing loans continued to decline for the Bank with are ` 994 crore and ` 445 crore respectively. gross NPA ratio declining to 9.61% as on March 31, 2019 Government Business from 12.26% as on March 31, 2018. Similarly, Net NPA ratio improved to 3.33% in March 2019 as compared to 5.49% in The Government Business is an important part of the Bank’s March 2018. strategy. It caters to the banking requirements of Central/ The movement of NPAs during the last two years are as under: State Government and PSUs across India. The Bank is authorised to collect direct taxes through its designated (` in crore) branches and is an accredited banker to the Ministry of Health Particulars 31.03.2018 31.03.2019 and Family Welfare. Gross NPA 56,480 48,233 The Bank is partnering with various departments at the Central and State levels in developing e-solutions in-line with the digital Gross NPA (%) 12.26 9.61 initiatives of the Government of India, leading to transparency Net NPA 23,483 15,609 and efficiency. MOUs with EPFO, Employees’ State Insurance Net NPA (%) 5.49 3.33 Corporation, IRCTC, National Agriculture Market, Government e-Marketplace and Inland Waterways Authority of India have Additions to NPAs 24,239 13,614 been signed to enhance fresh business opportunities. Recovery/ Upgradations 5,530 8,759 During the year, Bank has developed customised software for Write offs including TWOs 4,948 13,102 the e-LC solution for Ministry of Defence. Bank of Baroda is the Recoveries in written off accounts 621 832 only Public Sector Bank to launch e-KVP utility through banks. The Bank has integrated itself on the e-PCS portal of Indian Provision Coverage Ratio 67.21 78.68 Port Association for all the 3 major ports across India. An MOU (including TWO) (%) with the Kandla Port has been signed. Provision Coverage Ratio 58.42 67.64 The Bank has been recognised by Pension Fund Regulatory (excluding TWO) (%)

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As per asset classification, the bifurcation of loan book is as • Liasoning with Official Liquidators, organising Recovery given below: Camps across branches, close monitoring of stressed (` in crore) accounts and recovery agents at all levels and monthly e-auctions, especially in DRT suit filed NPA accounts. Asset Category 31.03.2018 31.03.2019 • Number of Wilful Defaulters declared during the current Standard advances 4,04,264 4,53,473 FY 2019 is 399, increasing the aggregate numbers Gross NPA 56,480 48,233 substantially to 750. This number stood at 303 as on March Total Gross Advances 4,60,744 5,01,706 31, 2018. Gross NPAs comprising of Information Technology (IT) Sub-standard 13,131 9,014 The Bank is constantly evolving its products, systems and Doubtful 35,447 32,398 structure to meet the growing aspirations of the customers. Loss 7,903 6,821 Digitisation of banking services is driving continuous upgradation Total Gross NPA 56,480 48,233 of the IT infrastructure. Some of the major initiatives during the In order to address a large number of small NPA accounts, the year include: Bank launched OTS schemes viz. Lakshya I and II (Lakshya • The Bank has upgraded its erstwhile Loan Management Agriculture, Retail & MSME) during FY 2019. The Bank settled System (LMS) with a new Loan Lifecycle Processing 109,327 accounts under these schemes with an aggregate System. This new system streamlines loan origination settlement amount of ` 639 crore and recovery and upgradation and tracking processes to enable faster loan disbursals of ` 543 crore. An application called One Time Settlement and end-to-end processing of loan proposals using image- Tracking System has been implemented wherein customers can based workflow and Business Process Management (BPM) initiate settlement proceedings online. The Bank has also set up tool to improve Turn Around Time (TAT). a legal war-room for real-time tracking of recovery proceedings • The Bank is implementing a Decision Management System and to aid accelerated decision making (378 high value suit-filed which provides business policy owners with the ability to accounts were being monitored by the War Room). author, test, execute, and maintain score models, strategies The Bank has set up a solution provider cell to augment and rules integrated with the LMS. This will substantially recoveries to ensure minimal slippages and to provide resolution improve decision quality, consistency and efficiency of strategies for large NPA accounts, with exposure above ` 30 operations. crore. For timely collections from retail and SME customers, a • The Bank is in the process of upgrading the existing Internet 350-member call centre with multi-lingual support has been set Banking (Baroda Connect) with an advanced version, an up. This is supported by feet-on-street staff to drive on-ground enhanced user interface and a basket of new functionalities. collections. A special taskforce of about 800 officials of the Bank • The Bank is in the process of implementing Oracle has been deployed for recovery of small NPA and potential CRM for Branches, Contact Centres (CCs), Retail Loan NPA accounts. Business Correspondents are incentivised for Factories (RLFs), Small Medium Enterprise Loan Factories collections in crop loans. (SMELFs), City Sales Offices (CSOs) and Regional Offices. The Bank has strengthened its NPA management with daily • In order to handle large volumes, the Bank upgraded to dashboards like Days Past Due (DPD) Report, NPA Movement Unified Payments Interface (UPI) version 2.0. It aims to Chart and Mock Runs for forecasting degradations to ensure simplify and provide a single interface across all NPCI reduction in slippages and improvement in collections. Further, systems besides creating interoperability and providing the Bank is in the process of developing a mobile application superior customer experience. which would enable the collection agents on the field to collect • The Bank has implemented a Centralised Communication the amount based on data fed from the system and also update Management (CCM) solution which facilitates automation recovery details. of various communication/e-communication to customers The Bank is in the process of implementing an Integrated on a monthly basis. Litigation Management system (ILMS), a pilot run of which • The Bank is in the process of implementing an API Banking has been completed. With this system, all the cases filed in platform to accelerate digital transformation and build DRT, suit filed cases with other courts and the status of action capabilities to unlock the true value of digital assets, create initiated by Bank under SARFAESI Act, etc. can be monitored business agility and promote innovation and collaboration. on a real time basis. • The Bank has implemented an automated reconciliation In addition, the Bank has put in place the following measures on platform called Universal Transaction Reconciliation an ongoing basis to facilitate recovery of non-performing assets: System (UTRS). This platform offers the capability to quickly configure two-way or multi-way reconciliation, • Assigning Nodal Officers at each DRT for follow-up of thereby reducing risk and increasing compliance. legal cases on a daily basis so as to minimise the delay in obtaining decrees and execution and to maximise • The Bank has embarked upon the journey of cloud recoveries. adoption. The Bank has implemented e-mail, e-learning Management services and collaboration technology • Taking assistance from Advocates/Consultants to liaise with solutions on the public/ community cloud. The Bank has Official Liquidators (OL) to get the recoveries realised by also implemented archival solution for email communication OLs. to strengthen compliance.

49 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

• The Bank is in the process of implementing a Mobile Device technologies to C-SOC to identify, manage, respond and resolve Management solution (MDM) which will enable employees cyber security incidents quickly and more efficiently. Further, to securely access various banking applications using the Bank has placed the following controls to enhance cyber corporate-owned and employee-owned (BYOD) mobile security: devices from remote locations, thus increasing productivity • Data Centre and Disaster Recovery operations are ISO and efficiency. This will also help the Bank in reducing cost 27001:2013 certified - (set of international best practices of operations and business risks. related to Information Security). • The Bank has best-in-class technology infrastructure • Implemented multi-layered security architecture to protect for Data Centre conforming to Uptime Institute Tier-3 IT Assets. standards. The Bank has also built a Disaster Recovery • Periodic audits of applications and infrastructure to identify Site in different seismic zones with redundancy built in weaknesses in the existing system and to take steps to every single point of failure to ensure uninterrupted service rectify deficiencies. delivery to our customers. Bank of Baroda has additionally built Near Disaster Recovery Centre for Core Banking • Phishing sites, rouge mobile apps and social media sites (Domestic & International) System and Treasury system are monitored for malicious activities/contents and the to ensure zero data loss as part of its Business Continuity same are taken down on detection through anti-phishing Planning and Disaster Recovery strategy. and brand protection services. The Bank has implemented state-of-the-art Data Centre • Advanced security solution implemented to detect and tools for Network Management at its Data Centre prevent Bank’s critical infrastructure from persistent threats and branches/offices. In addition, the Bank has also and zero-day attacks. implemented application performance management for • Data Leakage Prevention solution to detect and prevent synthetic monitoring of internet banking and core banking unauthorised usage or misuse of business sensitive applications. The Bank has set up two centres of excellence information. to build a future ready organisation. • Technology for detection of anomaly in network traffic and IT Centre of Excellence (ITCoE) its behaviour to detect network level attacks. The Bank has setup an ITCoE which works closely with business • Implemented technology to protect the systems from units to identify and implement related technologies for driving Distributed Denial of Service (DDoS) and obtained clean revenues and gaining efficiencies. The ITCoE aims to develop pipe to ensure uninterrupted customer service. differentiated, market-leading technology solutions while driving The Bank has also taken various initiatives for educating business outcomes. ITCoE is bringing together a wide variety customers through various channels such as SMS, ATM of cutting-edge skills such as design thinking, mobility, DevOps, slips, ATM screens, Digital Displays, Website etc. Employees Business Process Management and emerging technologies are sensitised in the field of cyber security through circulars, like Robotics Process Automation, API & Platform banking to mandatory E-Learning courses, quarterly IS awareness execute on the twin mandates of improving business efficiency magazine “Cyber Chunks” and Audio Visual Film among others. and taking new use-cases to market at speed. The Bank participates in the cyber security drills conducted by Analytics and Artificial Intelligence Centre of Excellence agencies such as IDRBT, CERT-In to test its capabilities and (A&AICoE) further strengthen defence against cyber-attacks. The Bank has Under the ACoE, the Bank has established an enterprise-wide, an emergency response team and cyber crisis management data and analytics technology platform with petabyte scale plan in place and their effectiveness is periodically tested - the Big Data Lake. Powered by leading data technologies through drills. and techniques like Data Lake, Machine Learning and IT, the Digital Transformation ACoE aims at helping the Bank in traversing the journey from The Bank is committed to digitisation and continuously strives Data to Insights and from Actions to Results. ACoE is working to migrate transactions to digital channels which lead to better with multiple lines of businesses to identify and realise new customer experience. As against a target of 50 crore digital value-creation opportunities, and to build the Bank's capability Transactions allotted to the Bank for FY 2019 by the Ministry in leveraging analytics to increase revenue, reduce costs and of Electronics and Information Technology (MeitY), the Bank improve risk profiling. achieved 107.6% of its target in February 2019. Cyber Security The major focus of Digital Banking is to make our products available to customers through digital and mobile channels such Over the years, the Bank has built a strong foundation for cyber as Mobile banking, Unified Payment Interface, BHIM Aadhaar, security comprising of a comprehensive set of information Multi-Function Kiosk, Self Service Passbook Printers, etc. The security measures to counter cyber-attacks. The Bank has a progress on digital initiatives is as follows: well-defined cyber security governance framework in place that • Mobile Banking: The Bank’s new Mobile banking application is operated through a combination of management structure, MConnectPlus is available in 13 languages and has been policy framework and operational controls. extended to NRI customers. The user base has grown In order to detect and prevent cyber incidents, the Bank has by 116% with 108% increase in transactions. Overall upgraded its Captive Security Operations Centre to Cyber transaction amount increased by 120% to ` 42,162 crore. Security Operations Centre (C-SOC) which operates on a • Unified Payment Interface (UPI): The Bank has extended its 24x7 basis. During the year, the Bank has further added new UPI application to all its RRBs .The Bank has tied up with

50 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report

TrueCaller app for providing UPI facility in September 2018. • Digitisation of Records: As a step towards moving to To increase customer convenience, the Bank went live on paperless banking and freeing space at branches to make UPI 2.0 as an issuer on 20.03.2019. Overall transactions way for customer friendly lay out, digitisation of records has increased to ` 122,408 crore. been undertaken by setting up a Document Management • Baroda Pay Point: During the year, the Bank launched System (DMS). This is an ambitious project of the Bank Baroda Pay Point - a mobile/web-based fee collection portal under which around 22 crore papers have already been for the payment and administrative needs of educational scanned covering over 3,200 branches. Over 2 lakh sq. ft. institutes and to help in canvassing additional CASA of space has been unlocked in the identified Branches. business and revenue income. FinTech • Debit Cards: The Bank offers a wide range of chip-based The Bank is cognisant of the transformational impact of FinTech Debit Cards with customised offers to meet the changing on financial services industry. The Bank has played a pioneering lifestyles of the customers. The Bank has issued more than role in collaborating with these players by becoming the first PSB 72 million debit cards (including 44 million Rupay cards). to establish a dedicated FinTech vertical in 2016. As of March The Bank launched RuPay qSPARC card - the National 2019, the Bank had 40+ partnerships with diverse FinTech start- Common Mobility Card (NCMC) to enable customers to ups working across lending, payments and innovative services. have a single card instead of a Debit and a Prepaid card separately. Some of our major initiatives during the year included: • Bharat Bill Payment System (BBPS): The BBPS System of • Payments: The Bank became the first PSB to go live on the Bank has been certified both as a Customer Operating Truecaller Pay for enabling digital payments using BHIM Unit (COU) and a Biller Operating Unit (BOU) by NPCI. The Baroda Pay UPI services. This tie-up gives us access to Bank is providing BBPS services in Mobile Banking, BHIM over 60 million, tech-savvy customers across the country. UPI, Net Banking and UMANG application through Net The Bank generated transactions of ` 166 crore in first 6 banking. The volume and value of transactions under BBPS months of going live. increased by 296% and 261% during the year respectively. • BoB Innovation Centre: The Bank signed an MOU for setting • Baroda FASTag (National E Toll Collection - NETC): The up the BoB Innovation Centre (BoBIC) in collaboration with Bank has implemented and launched NETC on 12.07.2018 and branded it as Baroda FASTag. IIT, Mumbai at their campus. BoBIC is a first of its kind BFSI– Academia partnership which is powered by a strong • ATMs: The Bank has 8,166 ATMs and 1,406 Cash ecosystem and aims to promote a culture of innovation and Recyclers in India and with an availability of 95%. Our multi- entrepreneurship in India. function ATMs are focused on making banking a smooth experience. Shared Services • Hi-Tech Digital Branch: The Bank has evolved an innovative The Bank has set-up a wholly owned subsidiary Baroda Global concept by setting up Hi-tech Digital branches equipped Shared Services Ltd. (BGSS) to focus on four core areas: with advanced gadgets like Artificial Intelligence Robot ‘customer service, efficiency, speed & managing risk’. The named Baroda Brainy and Digital Lab with free Wi-Fi Bank’s digitisation and centralisation strategy is embedded with services. In addition, the digital branches have self-service shared services. A number of processes have moved to back- kiosks and an expert area which is equipped with Remote office operations at the state-of-the-art Shared Services Centre Tellers (Video Assistants) to assist the customers in a more (SSC) in GIFT City, Gandhinagar and Hyderabad. Centralisation interactive manner. has not only reduced the cost of transactions but enhanced risk • NACH eMandate: Bank of Baroda went live for eMandate management, controls and compliance practices. Internet Banking on March 21, 2018. The Bank also went live with API Mandate (Internet Banking) as a destination During the year, the SSC made significant progress on bank on February 6, 2019. centralisation of back office processes and enhancing risk • Baroda Prepaid Card: The Bank offers three types of management framework for the Bank. The centralisation of Prepaid cards to its customers. following functions has been undertaken at SSC: a. Baroda Gift Card: A perfect gifting option which can 1. Migration of all deposit account opening, trade and forex be used to make purchases or payments across the transactions (foreign) and retail mortgage loans processing. country. 2. Pension operations. b. Baroda TravelEasy Card: A prepaid international 3. Digital Banking and Credit Card Operations. currency card, which is available in three currencies i.e. US Dollars (USD), Euro, Sterling Pound (GBP). It 4. Call centre for customers. is a reloadable and competitively priced card and can A pilot for agriculture operations, domestic trade, other branch be issued to resident customers travelling abroad. transactions (FD, account maintenance etc.) and MSME c. Baroda Reloadable Card: A prefunded card that is Operations with selective branches/ region is underway. The ideal for recurring overheads like pocket money, travel SSC has more than 800 full time employees (FTEs) in non-voice allowances, daily/monthly wages, meal allowances, (transaction processing) and ~ 750 FTEs in its call centre at etc. GIFT City with Business Continuity Planning (BCP) presence • Cashless Villages: The Bank has transformed 281 villages in Mumbai and Hyderabad, centralising more than 65% of into cashless villages by providing various digital products identified processes and activities. like Debit card, Mobile Banking, Internet Banking, UPI, During FY 2019, SSC has started a state of the art, 24X7 BHIM QR, BHIM Aadhaar, POS machines, etc. facility serving customers with focus on digital processing

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There has been an improvement in turnaround time (TAT) organic growth on social media channels to cover netizens along with reduction in error rates with specialisation of roles and engage with them. The Bank’s Social Media Presence and enforcement of improved ‘First Time Right’ (FTR).’ Time is summarised below: and motion studies have been conducted of each transaction/ No of likes / Followers as on product in order to help in continuously improving the utilisation Social Media Channels 31.03.2019 and productivity. Facebook Likes 10,52,000+ Operational Highlights: Twitter Followers 68,000+ 1. BGSS is operational round the clock and ISO Certified. YouTube Subscribers 24,300+ 2. Focus on automation of repeated tasks for better LinkedIn Followers 48,000+ productivity across segments and setting up of express Instagram Followers 49,200+ channels for priority processing. SSC is working on Branch Network Robotics, AI and machine learning based applications in conjunction with the IT team. As of March 31, 2019, the branch network of the Bank is as 3. More than 650 Bank staff were released to the branches under: for sales and other services. 31.03.2018 31.03.2019 4. Automation of cheque book, welcome kit, email/ SMS alerts Number % Share Number % Share has been activated for trade & forex customers. of in Total of in Total SSC also enhances the risk management framework of the Bank Branches Branches by instituting stronger controls at every stage of a transaction/ Domestic process. Branches Metro 1167 21.35% 1203 21.66% Marketing Urban 930 17.01% 959 17.27% The Bank has adopted an integrated marketing strategy Semi-urban 1537 28.11% 1546 27.84% across products and services that spans multiple customer Rural 1833 33.53% 1845 33.23% touch points. We create narratives that emphasise on services rendered by us and help in engaging with our Total 5467 100.00 5553 100.00 customers to strengthen their relationship with the brand. Overseas 106 100 Branches/ During FY 2019, Bank was present across all mediums of 2I¿FHV communication including print, digital, out-of-home (OOH), (including television and radio with a host of both brand and product branches led campaigns to increase both aided and unaided recall of overseas for the brand. The Bank continues to create awareness by subsidiaries) showcasing real life inspirational stories of its beneficiaries on two sponsored shows – ‘Hunnarbaaz’ on DD National The Bank opened 92 new domestic branches and merged six and “Hum Hain Hunnarbaaz – Koshish Hamari Safalta of them with existing branches. Aapki” on CNBC Awaaz. Our brand ambassadors P. V. Currency Chests Sindhu and K. Srikanth helped us in reaching out to diverse The number of currency chests with the Bank increased from audiences. 98 to 100 with the addition of two currency chests at Vadakara During the year, the Bank conceptualised and executed (Kerala) and Kennedy Avenue (Amritsar) during the year. These an extremely well received campaign with the themes – chests support effective cash management in the Bank as well ‘‘Behtar Se Behtareen” and “Power of Three” to announce as vaulting cash on behalf of RBI. All the currency chests as the tripartite amalgamation of Vijaya Bank and Dena Bank well as branches are provided Note Sorting Machines (NSMs). with Bank of Baroda. The creative execution with children Moreover, these currency chests have also helped the Bank in as protagonists is not only endearing but also stresses on efficient management of cash at branches. the shared heritage of the three brands which enhance Corporate Social Responsibility (CSR) brand recall. The Bank has a long legacy and tradition of contributing actively In line with our focus on digitisation and the large base of to the social and economic development of the communities Gen Y customers, the department continues to leverage through various developmental activities. The Bank as a the digital marketing ecosystem to put up the building responsible corporate citizen continuously strives to contribute blocks for data-led and metric-driven digital marketing. to the welfare of the society, particularly the upliftment of the The Bank ran 50+ digital campaigns through the year underprivileged sections of the society to make sustainable with the objective of establishing Bank of Baroda as an social changes in their lives. Skill development through training aspirational brand which engages, empowers and educates for gainful employment, human welfare and other social activities digital audiences by providing relevant content and fulfills for women and farmers continue to remain the Bank’s key focus banking needs by constantly analysing, measuring and areas. The Bank is helping different organisations engaged in improving experience, response and capabilities. The various community development and socio-economic welfare Bank is focussed on both Search Engine Optimisation and activities for the benefit of weaker sections and rural citizens.

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The Bank has established 49 Baroda Swarojgar Vikas Sansthan The Bank has a comprehensive Internal Capital Adequacy (BSVS) and RSETI centres in seven states of the country. These Assessment Process and stress test policy. The Pillar 2 risks centres impart skill development programmes to youth from such as Liquidity Risk, Interest Rate Risk, Concentration rural and semi-urban areas for generating self-employment. Till Risk and Capital Adequacy under both normal and stressed date these centres have conducted 12,990 training programmes conditions are assessed as per the extant policies. A brief outline and imparted training to 3,64,995 youth, out of which 2,37,507 of the mechanism for identifying, evaluating and managing have already secured employment or setup their own ventures. various risks within the Bank is as follows. The settlement ratio is at 65%. Our 25 BSVS centres have Enterprise Risk Management and Risk Appetite Statement been graded as “AA/A” (outstanding) based on the overall The diversity of our lines of business requires a comprehensive performance/functioning of the RSETIs, during FY 2018. 20 Enterprise Risk Management approach to promote a bank-wide Baroda RSETIs operate from the Bank’s own premises. strong risk management culture to help in the early identification, The Bank has set up 51 Financial Literacy and Credit Counseling assessment, measurement, aggregation and management of Centres (FLCCs) in eight states which provide financial all risks and to facilitate capital allocation among various lines counseling services and education to the people in rural and of business. All risks are approved within the overarching Risk urban areas about various financial products and services Management Framework and are adequately hedged. available from the formal financial sector. These centres also The Bank is constantly endeavouring to create a strong risk take up activities that promote financial literacy, awareness awareness culture by imparting trainings to the employees at about banking services, digital banking, financial planning and all levels. amelioration of debt-related distress of an individual. Credit Risk Risk Governance and Internal Controls Credit Risk is managed through a Board approved framework The increased focus on risk and the supporting governance that sets out policies, procedures and reporting which is in- framework includes identifying the responsibilities of different line with international best practices. Adequate attention is parts of the Bank for addressing and managing risk. Often given to the independence of the risk evaluators and business referred to as the ‘three lines of defence’, each of the three lines functions for establishing a sound credit culture and a well- has an important role to play. These are: structured credit approval process. Credit risk measurement i. First line of defence – This comprises of all the Bank’s models are validated by independent model validators for their employees as they are required to own and ensure discriminatory power, accuracy and stability. the effective management of risk and compliance with The Bank’s experience in internal ratings over the years has regulations, the Bank’s policies and guidelines. enabled the Bank to obtain the regulator’s approval for running ii. Second line of defence – This comprises of the risk control the Foundation Internal Rating (F-IRB) approach of credit risk owners, the risk management function and the compliance under Basel II guidelines from March 31, 2013. Under the IRB function. It is responsible for identifying, measuring, approach, the banks develop their own empirical model to monitoring and reporting risk on an enterprise-wide basis quantify required capital for credit risk. independently from the first line of defence. The Bank has put in place prudential caps across industries, iii. Third line of defence - An independent assurance is sectors and borrowers to manage credit concentration risk. provided by the internal audit function by conducting The portfolio review cell carries out detailed reviews on internal risk-based and other audits. The reviews provide sectoral exposure, credit concentration, rating distributions assurance to the Board that the overall governance and migration. framework including the risk governance framework is The Bank has also implemented the Risk Adjusted Return on effective and that policies and processes are in place and Capital (RARoC) framework for corporate credit exposures for consistently applied. The role of the audit function is defined evaluating credit risk exposures from the point of ‘economic and overseen by the Audit Committee of the Board. value addition’ to the shareholders. Risk Management and Compliance Market Risk Risk is an integral part of the banking business and the Bank Market Risk implies the risk of loss of earnings or economic aims to achieve an appropriate trade-off between risk and value due to adverse changes in market rates or prices of returns. To ensure sustainable and consistent growth, the trading portfolio. The change in economic value of different Bank has developed a sound risk management framework so market products is largely a function of change in factors such as that the risks assumed by the Bank are properly assessed and interest rates, exchange rates, economic growth and business monitored. The Bank undertakes business activities within the confidence. The Bank has well defined policies to control and defined risk appetite limits and policies approved by the Board monitor its treasury functions which undertake Market Risk of Directors of the Bank. Specific committees of the Board positions. have been constituted to facilitate focused oversight on various risks. The Board has also constituted a Risk Management The Bank measures and monitors interest rate risk in its trading Committee of the Board which oversees the interlinkages among book through duration, modified duration, PV01 and Value different type of risks. It is supported by onboarding specialists at Risk (VaR) on a daily basis. The foreign exchange risk is in the area. Policies approved from time to time by the Board measured and monitored in terms of net overnight open position of Directors or committees of the Board form the governing limits (NOOPL), VaR limits, Aggregate Gap Limits (AGL), framework for each type of risk. Individual Gap Limits (IGL) on a daily basis. Equity price risk is

53 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 measured and monitored through VaR limits and portfolio size capital of Banks, new measures for the inclusion of FCTR, DTA limits, etc. At a transaction level, stop loss limits and dealer-wise and Revaluation Reserves were introduced by RBI in March 2016. limits have been prescribed and implemented. Under its stress The Bank has started maintaining Capital Conservation Buffer testing framework, the Bank conducts comprehensive stress (CCB) from March 2016 onwards and will reach the minimum tests of its trading book portfolio on a quarterly basis. prescribed level of 2.5% by FY 2020. Asset Liability Management The Bank also maintains the regulatory mandated liquidity Liquidity Risk is the inability to meet expected and unexpected coverage ratio (LCR) as per the transitional arrangements cash and collateral obligations at reasonable cost. At the Bank, prescribed by RBI. the liquidity risk is measured and monitored through Flow Compliance Approach and Stock Approach and other prudential stipulations The compliance function is one of the key elements in the as per RBI’s extant guidelines. The Bank has implemented the Bank’s corporate governance structure. The Bank has put in Basel III Framework on Liquidity Standards - Liquidity Coverage place a robust compliance system including a well-documented Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Compliance Policy, outlining the compliance philosophy of Standards. The LCR Standard aims to ensure that banks the bank, role and set up of the Compliance Department, maintain an adequate level of unencumbered High - Quality composition of its staff and their specific responsibilities. Liquid Assets that can be converted into cash to meet liquidity The compliance function advises senior management and the needs for a 30-calendar days’ time horizon under a significantly Board on the Bank’s compliance with applicable laws, rules and severe liquidity stress scenario specified by supervisors. The global standards and keeps them informed of developments in Bank has always been well above the stipulated level of LCR the area. It also educates employees about compliance issues on a solo basis as well as on a consolidated basis. by conducting periodic trainings and workshops for business staff Interest Rate Risk in the Banking Book (IRRBB) arises due to and designated compliance officers. Knowledge management mismatch between rate sensitive assets and liabilities which tools for this purpose have also been uploaded on the Bank’s may adversely impact the earnings/economic value of equity of site. The Bank has implemented a web-based compliance the Bank with the change in interest rates. The Bank uses risk management solution for certification and monitoring of various management tools such as Traditional Gap Analysis, Earning at regulatory, statutory and internal guidelines at each level in the Risk and Modified Duration of Equity for the measurement and Bank for further strengthening the compliance function. monitoring of Interest rate risk in the banking book. The short- KYC/ AML Compliance term impact of interest rate movements on Net Interest Income [NII] is calculated through the ‘Earnings at Risk’ approach by The Bank has a well-defined KYC-AML-CFT Policy. On the basis taking into consideration parallel shift in yield curve, yield curve of this Policy, KYC norms, AML standards and CFT measures risk, basis risk and embedded options risk. The long-term impact and obligations of the Bank under Prevention of Money of interest rate movements is measured and monitored through Laundering Act (PMLA) 2002, are implemented in the Bank. change in Market Value of Equity (MVE). The Bank has elaborate systems to generate Cash Transaction Reports (CTRs) electronically for submission to Financial Operational Risk Intelligence Unit-India (FIU-IND). The Bank electronically files The Bank has implemented a web-based Operational Risk Counterfeit Currency Reports (CCRs), Non-profit Organisations Management system called SAS Enterprise Governance, Transaction Reports (NTRs) and cross border wire transfer Risk and Compliance (EGRC) for systemic and integrated (EFT) reports to FIU-IND, New Delhi on its portal every month management of Operational Risk. To mitigate and control within prescribed timelines. operational risk at a transaction level, Bank of Baroda has The Bank has established a Central Transaction Monitoring Unit established a Centralised Transaction Monitoring Unit for (CTMU) and put in place an AML Solution for monitoring and monitoring of all domestic transactions from the KYC/ AML/ detection of unusual transaction patterns in customers’ accounts CFT perspective. The Bank has segregated customer interface and generation of system-based transaction alerts on the basis (front office) from the execution of transactions (back office) by of predefined alert parameters in the system. centralising a number of back office functions. The Centralised Trade Finance Back Office (TFBO) for forex transactions has System-based risk categorization of customers’ accounts is been set up to minimise operational risk in forex transactions. done on half yearly basis. Re-KYC of High Risk Customers is being done on half yearly basis after carrying out Money Roll out of Key Risk Indicators Programme (KRI), Risk Control Laundering Risk Categorization Exercise, as per extant and Self-Assessment Programme (RCSA) and root-cause guidelines of the RBI. For this purpose, Bank has developed analysis has further strengthened the control environment. automated process flow for identification and generation of For improved fraud risk management, the Bank has completed Notices for such customers to notify them for submission of the implementation of the first phase of Enterprise Fraud Risk requisite KYC Documents. Monitoring Solution (EFRMS) and the second phase is under The Bank has also implemented Aadhar based e-KYC in implementation. collaboration with UIDAI on voluntary declaration of customers Basel III Implementation for e-KYC authentication. The Basel III capital regulations have been implemented by Indian The Bank is in the process of allotting Unique Customer banks with effect from April 1, 2013. This implementation requires Identification Code (UCIC) to all its existing customers as per enhanced quality and quantity of capital on one side and enhanced the RBI guidelines and has implemented a Central KYC Registry disclosures on the other. For augmenting and improving the core for allotment of CKYC Numbers to individual customers, as

54 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report per prescribed RBI guidelines. The guidelines in respect of • Banking from home and mobile has been made more beneficial owners are scrupulously followed. comfortable with the addition of multiple frequently used Internal Audit options and functionalities (nomination registration, request for account transfer, closure of term deposits, new one The Bank’s Central Internal Audit Division (CIAD) is responsible glance account statement across relationships) to the for internal audit. CIAD administers various streams of audits Bank's popular mobile banking application. The internet besides Risk Based Internal Audit (RBIA) of branches and and various other digital applications are being enhanced offices. The Audit Committee of the Board oversees overall with new functionalities to provide better user experience. internal audit function and guides in developing effective internal audit, concurrent audit, IS Audit and all other audit functions • Bank's Contact Centre supports six regional languages in of the Bank. The committee monitors the functioning of the addition to English & Hindi. It is available 24*7 to handle Audit Committee of executives and internal audit department emergencies (card blocking, reissuance, stop payments), in the Bank. enquiries or grievances. We also support four overseas locations – Mauritius, Botswana, Oman and Uganda. CIAD operates through thirteen Zonal Internal Audit Divisions to carry out internal audit of branches/offices as per the periodicity • The Bank has undertaken an end-to-end revamp of the decided by the Risk Based Internal Audit Policy. All branches grievance machinery with more convenience for customers. of the Bank are covered under Risk Based Internal Audit. Out Some of the features include a comprehensive and well- of the 4,881 branches audited during FY 2019, 4,151 branches established policy, real-time complaint status tracking, time (85.0%) were in Low Risk, 627 branches (12.9%) were in bound auto escalation, options to attach documents, option Medium Risk, 101 branches (2.1%) were in High Risk and 2 to provide feedback on resolution quality and also an option branches (0.04%) were in Very High-Risk category. to reopen a complaint. The Bank had engaged an independent firm as a knowledge • At the apex level, the Bank has formed the Customer partner for comprehensive review of the Audit function in-line Service Committee, a sub-committee of the Board which with the processes focusing on centralisation of activities by addresses the issues relating to the formulation of policies use of technology, imaging solutions and digitisation. The audit and assessment of their compliance with the aim of transformation process was completed and audits under the consistent improvement in the quality of customer service. revised approach commenced during the financial year. The Bank has also set up a Standing Committee on Procedures and Performance Audit of Customer Service. Customer Service Its members include two eminent public personalities, all The Bank is focused towards providing excellent customer Executive Directors and the seven Functional Heads of the experiences. It has been our constant endeavour to set Bank. This Committee reviews practices and procedures industry benchmarks and pioneer innovations across products, prevalent and takes timely and effective compliance of the processes and service delivery that are imperative to providing RBI instructions on Customer service. In addition, there are seamless experiences to our customers. We have been actively Branch Level Customer Service Committees for directly engaged in understanding and identifying gaps between getting feedback from customers. customer needs and expectations through the Voice of the • While the Bank is focused on enhancing the convenience customers and employees, embedding customer experience of banking from home, the Bank is also monitoring the goals in the organisation’s goals, building a “Client First Culture” service levels across the network of branches through and redesigning experiences (product design, systems and mystery shopping/service audits. The Bank is ensuring processes) for enhanced customer delight. better ambience, more seating area and better basic This year, the focus has been on “EASE of Banking” to amenities to all customers with special focus on “EASE” improve experiences across every customer touch point. for senior citizens and the differently abled. Some of the Several initiatives were undertaken round the year to ensure flagship branches are undergoing a facelift and are being EASE – Enhanced Access and Service Excellence. The Bank deliberately designed to provide a competitive edge while has secured the second place among public sector banks in enhancing customer experience. the ‘EASE of Banking Index, a strategic initiative undertaken • The Bank is driving hassle-free banking through alternate by Government of India to imbibe best practices and provide delivery channels (apart from ATMs and cash re-cyclers)- superior customer experiences in Public sector Banks. self-service pass books, multi-functional kiosks, tab Some of the steps taken in this direction by the Bank are: banking, Baroda Pay Point, tie ups with BHIM Aadhar, • The Bank has a wide array of financial services including enhanced UPI app and other initiatives of national Insurance and Investments and provides one-stop shop importance such as Bharat Bill Payment System. access to customers. The Bank has customised the service • The Bank has transformed 281 villages into cashless and marketing strategy for select customer segments, in villages by providing various digital products like Debit order to meet their expectations. “Baroda Radiance” has Cards, Mobile Banking, Internet Banking, UPI, BHIM QR, been launched across all major cities and investment and BHIM Aadhaar and POS machines. wealth management services are now available to all our • As mentioned earlier, the Bank is continuously upgrading its customers. Bank has on-boarded best-in-class investment IT infrastructure and driving digitisation in its processes. The advisors and relationship managers. A dedicated phone Bank has launched a new loan processing system making banking team also is now available for assisting Baroda end-to-end tracking of applications and loan disbursals Radiance customers.

55 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

faster. An enterprise wide CRM will also be rolled out shortly niche and key focus areas to strengthen its capabilities and to improve quality of interactions and experiences at every bench strength. touch point. • The Bank has an ongoing ‘Client-First' drive and continuous Baroda GEMS Growth and Empowerment Management feedback is sought from customers and employees on System experiences delivered at various touch points. The Bank The Bank has introduced a scientifically measurable publishes a Client-First Newsletter “Pratham”, which Performance Management System (PMS) for all officers on a discusses best practices in the service industry and features digital platform - Baroda GEMS (Growth and Empowerment stories on Barodians “living the client-first” values. Management System) to establish a transparent and A customer’s journey with a bank involves multiple stages performance driven culture. The role perquisites for Branch from queries about the Bank’s offerings to delivery of products Heads are also linked with Baroda GEMS, to enable accurate and services. The Bank endeavours to meet the customer’s measurement of achievement of KRAs. expectations at each stage of the journey and to ensure Job Family customer “wow”. During the year, the concept of allocating employees to job The Bank secured the 4th position in Forrester’s India CX Index, families has been introduced in the Bank to enable well-rounded 2018 Rankings of Indian Banks. The Forrester’s CX Index score grooming of the employees and to provide them with better measures how successfully a company delivers customer career opportunities through flexibility of movements across experiences that create and sustain loyalty. roles which are mapped out for each job family and ensure Vigilance structured and timely deployment, exposure and development. The vigilance function in the Bank aims at proactively supporting Baroda Rewards for Individual & Team Excellence – BRITE bona fide decisions and simultaneously acting as a deterrent for The Bank has always been a front-runner in acknowledging ensuring that no wrongdoing takes place. The thrust remains employees’ contribution and believes that employees are on identifying leakages within the organisation that may lead strategic partners in quest for excellence. To instill the spirit of to financial losses and taking corrective and preventive action the core values and cover multiple dimensions of employee to plug them. performance and motivation, a comprehensive suite of rewards Regular vigilance audits are undertaken for sensitive branches and recognition programmes named as ‘Baroda Rewards for and employees are sensitized on preventive aspects of vigilance Individual & Team Excellence- BRITE’ has been institutionalised through newsletters, circulars, meetings, etc. The number of during the year to recognise both outstanding individual and staff accountability cases has been brought down by ensuring team performance. speedy disposal of vigilance matters. An exclusive portal ‘BoB Baroda Anubhuti Programme e-Vigil’, incorporating online vigilance clearance, disciplinary proceedings status, and complaint management system has It is an employee engagement programme designed to foster been operationalised. the spirit of team bonding and collaboration, and creating a happy and fun workplace. Various initiatives like employee of the Human Resources month, spot recognition –capturing ‘WoW’ moments, fun hour The Bank has a rich talent pool with over 55,000+ employees on at all branches/offices, local community service/ social activities its rolls. The Bank continuously undertakes multiples initiatives are undertaken to enhance the overall employee engagement for strengthening and developing its human resources viz., levels. Mandatory community service programmes are carried recruitment, addressing training needs of employees, employee out through all branches/offices once in six months. engagement and capability building. Under the banner of Baroda Anubhuti, the Bank has been also The second ‘Voice of Barodians’ Survey witnessed 87% conducting Annual Sports Day on the 4th Saturday in November employee participation where the Bank’s workforce expressed and six Inter Zonal Sports & Cultural Tournaments in various their perceptions, views and suggestions on a wide range of disciplines across the country. aspects impacting them. As a result of various HR interventions Wellness and Fitness Drives initiated by the Bank, the overall employee engagement level has increased from 55% in the last survey to 63%. The Bank The Bank has launched many initiatives for managing employee has been awarded among the Best 50 PCI (People Capital health and well-being, which include a mandatory health Index) Companies by Jombay. checkup scheme for employees and their spouses. During the year, through a Group Term Insurance cover, the Bank offered The following initiatives have been taken during the year which all permanent employees with the Life Insurance cover of Rs have direct and significant impact on Bank’s performance: 20 lakh. The medical treatment needs of employees are met Manpower Planning and Recruitment through a Group Medical Insurance Policy. The Bank regularly The Bank has built a new scientific manpower planning model conducts Health checkup camps, fitness drives, yoga sessions, designed to estimate skill-based manpower needs at various etc. to promote the health and well-being of our employees. levels. This would help the Bank in taking key strategic decisions Crèche facility viz. recruitment, deployment, promotions, trainings, etc. During the year, as part of its employee friendly welfare The Bank recruited 1,281 Officers and 1,617 in Clerical Cadre measures, the Bank set up a state-of-the-art onsite crèche as Business Associates through direct recruitment during FY facility at its Corporate Office in Mumbai in order to provide 2019. The Bank also hired specialised staff with expertise in day care facilities for small children of employees. The Bank

56 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report plans to extend this facility at the Head Office, Baroda and other the aegis of Staff Welfare Fund, the Bank has standardised the select centres. facilities at the Bank’s Holiday Homes and also, opened five Learning and Development more Holiday Homes during the year in Munnar, Panchmarhi, Shillong, Dharmshala and Baroda. The total number of Holiday The Bank’s approach to training identifies the functional, Homes now stand at 50. mandatory and behavioral training needs for employees at different levels of career development and addresses these The Bank’s Human Resource Centralised Processing Cell requirements in a systematic manner. Mandatory training has (HRCPC) department processes all staff loan applications and been aligned to specific and critical job roles. The Bank also other online TA/DA claims on the same day of receiving the runs mandatory certification programs that are necessary applications, maintaining the TAT and contributing to employee before deployment in critical roles. The Bank is also investing satisfaction. in sharpening soft skills of its employees. The Bank has continuously improved its HR technology platform, The Bank has undertaken various initiatives to build a learning “Human Resources Network for Employee Services (HRNes)”. environment through various innovative and digital channels In order to address employees’ concerns and grievances, Bank like Baroda Gurukul, Baroda Margdarshak, Baroda Radio, has also put in place an online employee grievance redressal Barodapedia, Baroda YouTube, a digital library, and weekly mechanism, named as “Baroda Samadhan”. quizzes for knowledge updation. Thrust on Diversity Our e-learning platform hosts more than 280 modules and more The Bank follows a non-discriminatory and equal opportunity than 8 lakh courses were completed by employees during FY policy for all its employees. The Bank is transparent in all issues 2019. relating to promotion, career path, transfer policy and employee ‘We Lead’ – Comprehensive Leadership Development benefit / welfare schemes. The Bank has also introduced ‘Job Programme Roles’ for visually impaired employees. Further, the Bank has been increasing its recruitment of women employees. The The Bank has identified over 2,700 potential leaders to take percentage of women in the overall staff composition has over leadership positions in future through four distinctive increased to 23.7% in FY 2019 from 23.0% in FY 2018 and programmes: 22.7% in FY 2017. • Baroda Senior Leadership Programme- for officers in In order to retain women employees at all levels and in Scales VI & VII recognition of the concomitant responsibilities of women, the • Baroda Emerging Leaders Programme- for officers in Bank has also put in place various facilities to support women Scales IV employees such as sabbatical leave and health check-up • Baroda Rising Stars Programme- for officers in Scales IV programmes for women employees among other initiatives. • Sayaji Rao Gaekwad Scholars Programme – for Officers Besides, a day-care crèche facility has been operationalised in Scales I, II & II as mentioned earlier. The first phase of the comprehensive leadership development Reservation Cell programme – ‘We Lead’ has been completed and actions have An exclusive Reservation Cell has been set up to monitor the been initiated for the next phase to extend the coverage of the reservation and other enabling provisions for SC/ST/PWD/ programme. Ex-Serviceman and OBC employees. Executives in the rank Baroda Alok Chandra Bravery Award of General Manager are appointed as Chief Liaison Officers for SC/ST/PWD and ex-serviceman employees and OBC During the year, the Bank instituted the ‘Baroda Alok Chandra employees, respectively, who ensure compliance of various Bravery Award’ to recognise exemplary acts of bravery beyond guidelines pertaining to them. With effect from February 1, 2019, the call of duty by displaying courage for furthering, safeguarding reservation of 10% for Economically Weaker Sections (EWSs) in and protecting the interests of the Bank. The Award is named all exercises for direct recruitment in the Bank is implemented. in the memory of Late Shri Alok Chandra, who during the year, laid down his life while protecting Bank’s interests, while posted The Bank provides reservations for Persons with Disabilities in Arwal Branch, Patna Region. (PWDs) at the rate of 4% of the total vacancies arising in Officer, (identified posts) Clerical and Sub-Staff Cadre in a year, as per Career Progression Government guidelines. Concerted efforts have been taken by Bank for fostering career progression of employees, for rewarding them for their Caste Category wise Count as on 31.03.2019 performance and motivating them. Horizontal movement of Cadres SC ST OBC Ex - SM Officers across different functions is encouraged to provide them with wider exposure. During the FY 2019, promotion 2I¿FHU 4975 2292 7831 377 exercises were completed and 3,564 employees promoted in Clerk 3116 1780 4844 1742 all scales and cadres. HR policies and systems Sub-staff 2303 831 2133 577 The Bank is constantly updating its policies and systems to Grand Total 10394 4903 14808 2696 make them ‘Best in Class’. During FY 2019, various policies % to Total 18.9 8.9 27.0 4.9 viz., Transfer, Promotion, policy on Equal Opportunities were Employees put in place / updated to keep up with the changing times. Under

57 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Periodical Meetings: The Bank holds Quarterly Meetings community for contributing in the promotion and preservation with the representatives of All India Bank of Baroda SC/ST of Hindi/Regional/Tribal languages, in addition to the “Maharaja Employees' Welfare Association and half yearly meeting Sayajirao Bhasha Samman” scheme of the Bank. with the representatives of All India Bank of Baroda OBC During the year, the Bank was awarded the First Prize by Employees’ Welfare Association, as per the Government the Government of India under linguistic region ‘B’. Similarly, Guidelines. TOLIC, Varanasi was awarded with First Prize. Besides this, Workshops & Training Programmes: Bank conducts our Faizabad Regional Office, Zonal Office, Lucknow, TOLIC following training programmes every year for members of Jaipur, TOLIC, Baroda and TOLIC, Rajkot also received AIBOBSCST Employees’ Welfare Association and AIBOBOBC awards from Government of India through its Regional Employees’ Welfare Association and Liaison Officers of SC/ Implementation Offices. STs and OBCs at Apex Academy, Gandhinagar: The Bank’s House Journal ‘BoBMaitri’ and Hindi Patrika • Pre-Promotion Training for SC/ST candidates ‘Akshayyam’ received awards from Association of Business • Workshop on Reservation Policy Communicators of India (ABCI) during the year in three different categories. • Training programme on Disciplinary proceedings Domestic Subsidiaries and Joint Ventures The Standing Committee on Social Justice and Empowerment met our Bank’s representatives on 15th January, 2019 at BOB Financial Solutions Ltd. Jamnagar on priority sector lending to SCs, STs, OBCs, BOB Financial Solutions Limited (BFSL), formerly known as Minorities and Persons with Disabilities. Bobcards Limited, is a wholly owned subsidiary of the Bank. It Premises Re-engineering is a non-banking financial company and its primary business lines include credit cards, personal loans and merchant In an effort to improve the ambience of customer touch acquiring. During the year, it revamped its business strategy. points, 360 identified branches across the country are being BFSL’s credit cards base grew 84% YoY helped largely by a refurbished with special emphasis on maintaining a uniform 1,200 strong field force deployed across 1,700+ branches of look and feel in all branches. An Ambience Manual has been the Bank. BFSL introduced value added features, in the form issued to standardise the ambience of branch premises of rewards points and various schemes through marketing keeping in view the ease of banking operations, use of new partnerships with leading consumer brands which resulted in a technology and customer convenience. The Bank has also 37% increase in spends on credit cards in H2 vs H1 (FY 2019). undertaken a number of green initiatives during the year and successfully completed the construction of the new Regional BFSL entered into a tripartite agreement with the Bank and office at Udaipur and a Disaster Recovery centre at Hyderabad. TransUnion-CIBIL, for launching ‘Project Nirmaan’ – an initiative to pre-approve Bank’s customers for credit cards. Bank in an attempt to reduce carbon footprint, uses energy More than 66,000 credit cards were issued under this efficient equipment, solar energy, and LED light fixtures in programme. Further, a personal loan product was piloted for its branches. Use of recycled waste water and production of the BFSL employees and a select set of pre-approved credit bio gas from solid waste are also explored in Bank's major card customers during FY 2019. commercial buildings. A plethora of technology initiatives were taken by the company Implementation of Official Language (OL) Policy to improve customer experience (like EMI on Card, Green Pin, The Bank continued to make exemplary progress in the Chabot, lending solution, revamped website and customer implementation of the Official Language Policy of the service portal), to reduce customer service turnaround times Government of India and fulfilled all the assurances given to (robotics based solution, customer originations platform) and the Committee of Parliament on Official Language. Use of to enhance employee experience (HR Platform, centralised Hindi and other Indian languages for business growth as well Help Desk). as for providing digital products to the customers is a significant BOB Capital Markets Ltd. characteristic of the language policy adopted by our Bank. This has been appreciated by regulatory authorities. BOB Capital Markets Ltd. (BOBCAPS), a wholly owned subsidiary, is the investment banking arm of the Bank. It is Our initiatives included organising an All India seminar a SEBI registered Category-I merchant banker. BOBCAPS for banking faculties on ‘Opportunities for Credit Flow to offers the entire spectrum of financial services that include Agriculture Sector’, publishing e-books/ books on various Initial Public Offerings, Private Placement of Debt, Corporate topics like Agricultural Best Practices, Baroda Kisan Diwas Restructuring, Business Valuation, Mergers & Acquisitions, related literature as well as active participation in the 11th Project Appraisal and Loan Syndication. BOBCAPS Vishwa Hindi Sammelan held at Mauritius. also undertakes advisory services on Securitisation This year, the Bank instituted one more award namely and Structuring of Debts. It has five lines of businesses “Maharaja Sayajirao Lok Bhasha Samman” for honouring viz. Investment Banking – Equity; Investment Banking an eminent personality from other than the Hindi speaking – Debt; Institutional Broking, Retail Broking and Wealth

58 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report

Management. network, with particular focus on IFAs. The AUM from this During FY 2019, BOBCAPS completed five debt syndication segment has been growing steadily. With the completion of transactions amounting to Rs.4,196 crore while the rationalisation and the scheme categorisation exercise and Stressed Asset Resolution team executed 5 transactions. the regulatory changes around Total Expense Ratio, Baroda The Company has secured 10 mandates for IPOs / FPOs AMC will be better positioned to compete in the market. / OFS, PE fund raise and M&A transaction resulting in a IndiaFirst Life Insurance Company Ltd. robust deal pipeline in equities. Institutional broking has Headquartered in Mumbai, IndiaFirst Life Insurance, is one ramped up its new client empanelments and revenue run of the country's youngest life insurance companies, with rate during the year. It has recently commenced coverage of a paid-up share capital of ` 625 crore. The company is foreign institutional investors based outside India. In retail promoted by two of India's largest public-sector banks - Bank broking, rise in client acquisitions and business volumes are of Baroda and Andhra Bank, which hold 44% and 30% stake being driven by enhanced products and services like 3-in- in the company, respectively. During the year, IndiaFirst 1 Demat, Trading and Bank Account, Prepaid brokerage, Life’s erstwhile founding partner Legal and General, UK, online account opening platform and quality research. The divested the 26% stake it held in the company. This stake Company’s investment advisory team supports the Wealth was acquired by Carmel Point Investments India Private Management vertical of the Bank. Limited incorporated by Carmel Point Investment Ltd, a body The Nainital Bank Ltd. corporate incorporated under the laws of Mauritius and owned The Nainital Bank Limited (NBL), originally promoted by Late by private equity funds managed by Warburg Pincus LLC. Bharat Ratna Pandit Govind Ballabh Pant and others in 1922, The company’s is currently ranked 12th in Individual New became a subsidiary of Bank of Bank of Baroda in the year Business (Annual Premium Equivalent), among the private 1973.The Bank's holding in Nainital Bank Ltd. is 98.57%. The players with Assets under Management (AUM) at ` 15,039 total business of NBL increased to ` 10,931 crore on March crore as on March 31, 2019. 31, 2019 from ` 10,772.10 crore as on March 31, 2018. The IndiaFirst Life was named the “Most Innovative Life Insurer net profit of the Bank was ` 26.89 crore in FY 2019 against of The Year (2018) - International" by Life Insurance a profit of ` 48.90 crore during the previous year. The Bank International, UK, a body dedicated to offering benchmark opened 2 new branches during FY 2019. During the year, intelligence centered exclusively on the global life insurance NBL was ranked 3rd in the category of the Best Performing fraternity, besides being recognised among the “Best Brands Private Bank in terms of average Aadhar generation and 2018”, by the Economic Times, and being certified as a “Great update by UIDAI for The Aadhaar Excellence Awards, 2018. Place to Work”. Baroda Global Shared Services Ltd. India Infradebt Ltd. Established during FY 2017, Baroda Global Shared Services India lnfradebt is the first Infrastructure Debt Fund (IDF) - Ltd. (BGSS), a wholly owned subsidiary of the Bank, NBFC and was sponsored by Bank of Baroda along with commenced its operations during last financial year. BGSS’s ICICI Bank. Citicorp Finance (India) Limited and LIC of India strategy is to focus on four core sectors - customer service, are other shareholders. It has been rated AAA by CRISIL, efficiency, speed & managing risk. It is providing services to ICRA and India Ratings since its inception. It finances the the Bank by helping it in digitising and centralising its back- relatively safe, completed infrastructure projects which have office operations at the state-of-the-art Shared Services achieved one year of commercial operations and enjoys Centre (SSC) GIFT City, Gandhinagar and at a second centre 100% income-tax exemption. The synergy with the Bank at Hyderabad. Centralisation has not only reduced the cost arises from its focus on lending to strong, stable infrastructure of transactions but enhanced risk management, controls and projects - mainly NHAI road projects and renewable energy compliance practices. projects. The company has delivered healthy growth in its Baroda Asset Management India Ltd. first full five years of operations. Its loan book as on March 31, 2019 was ` 9,809.5 crore and net profit for FY 2019 was Baroda Asset Management India Limited (“Baroda AMC”) ` 223.7 crore. became a wholly owned subsidiary of the Bank with effect from September 28, 2018 after buying out the 51% stake Barodasun Technologies Ltd. by the bank from its joint venture partner UniCredit S.p.A. Barodasun Technologies Ltd. is a wholly owned IT subsidiary (the parent company of Pioneer Global Asset Management incorporated on 05.07.2017. The Bank has set-up a Centre S.p.A.). The Baroda AMC acts as the investment manager to of Excellence (CoE) to identify new emerging trends and Baroda Mutual Fund (“Baroda MF”), a mutual fund registered provide technology differentiation. The CoE would provide with the Securities and Exchange Board of India. The Average design thinking skills, process design, architectural skills and Assets under Management (AUM) of Baroda MF for FY 2019 core development capacity in current and future technologies were ` 12,345 crore, registering an annual growth of 7%. to help businesses in leveraging technology for realising Growth in average AUM under equity schemes was over 40%. business outcomes. Baroda AMC continues to expand its third-party distribution

59 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

A brief summary of domestic subsidiaries and Joint Ventures is as below: (` in crore) Entity (with date of registration) Owned funds Total assets Net profit Offices Staff BOB Financial Solutions Ltd 247.7 441.6 4.1 38 446 BOB Capital Markets Ltd. 153.8 161.33 (2.92) 1114 The Nainital Bank Ltd. 624.0 8101.8 26.9 4 916 3 locations (Gift City, Gandhi- Baroda Global Shared Services Ltd. 12.0 14.1 1.5 424 nagar/ Hyderabad / Mumbai) Baroda Asset Management India Ltd. 64.2 76.4 4.9 570 Baroda Trustee India Pvt. Ltd. 0.1 0.2 0.0 10 IndiaFirst Life Insurance Company Ltd. 663.5 15626.3 61.6 29 2101 India Infradebt Ltd. 1636.6 10403.4 189.9 121 Awards and Accolades Date Awards 2018-19 17.03.2019 “Best Banking & Finance Legal Team of the Year” award at the 8th Annual Indian Legal Era Awards 2018-19. 08.03.2019 Business Today Jury award for best Fintech Engagements. Multiple honours at the IBA Banking Technology 2019 Awards: • Winner - Most Customer Centric Bank Using Technology” 20.02.2019 • Runners Up - “Best Payment Initiatives” • Baroda Rajasthan Gramin Bank adjudged ‘Best Technology Bank of the Year’ 18.02.2019 CSR Excellence Award - TV9. Ms. Nikita Raut, Chief Manager, HR and Head, Mumbai Academy, topped Jombay’s Top 40 under 40 award for 30.01.2019 HR Professionals 25.01.2019 Finnoviti Award for ‘Fintech Initiatives’ at the Banking Frontiers' Finnoviti Conference 2019. 28.01.2019 Leadership Capital and Out Performers awards at Atal Pension Yojana Awards 2018-19. 5 honours at the 58th Association of Business Communicators of India (ABCI) Awards in the following 18.01.2019 categories - Indian Language Publications, Features (English), Features (Language), Headlines and Corporate Film. 11.01.2019 ‘Best Home Loan Products 2018’ at FE Best Banks Award 2018. ‘Inclusive Finance India Award-Best Bank in Priory Sector Lending’ for innovation & inclusiveness in PSBs 11.12.2018 category, at Inclusive Finance Summit, 2018. ‘Best Bank in Supply Chain Finance” in the 4th edition of Asian Supply Chain Thought Leadership Summit & 08.12.2018 Awards -2018 held by the Institute of Supply Chain Management. 10.11.2018 “Best PSU Bank under MSME” & Best Bank Agriculture’ finance at Divya Bhaskar Eminence Awards 2018. 19.11.2018 Fiji Territory received the Business Excellence Award 2018 from President of Fiji. APY "Rise Above Rest Campaign" Award and APY "Best Performing Bank Award” for the campaign” Maker of 16.11.2018 Excellence" - PFRDA, Government Of India. 04.10.2018 Best Performing Bank at the UIDAI's Aaadhar Excellence Awards 2018. 14.09.2018 Kirti Award – First Prize for official language implementation for the year 2017-18. Shri P. S.Jayakumar, MD & CEO, was conferred with "CEO of the Year" and the Bank bagged the "Retail Bank 28.06.2018 of the Year" at India Banking Summit & Awards 2018. The bilingual in-house journal ‘BoBMaitri’ and Hindi Magazine ‘Akshayyam’ were awarded with First and 27.06.2018 Special prizes respectively under All India House Journal Competition organised by RBI. 29.05.2018 “Apex India CSR Excellence Award 2017” for CSR Activities for BSVS (RSETI) Project. Recipient of National Award for Best Performance in SHG- Bank Linkages 2017-18 Public Sector Banks by 11.05.2018 Deendayal Antodaya Yojana, National Rural Livelihoods Mission. Appreciation & Honour from the World Trade Centre for launching” Digitised Supply Chain Finance” at 7th 14.05.2018 Global Economic Summit 2018. Winner of "Litigation Dept of the Year 2018" and First Runners Up - “In House Dept of the Year”, at the 7th 13.04.2018 Edition of IDEX Legal Awards. Dividend Distribution Policy As required under Regulation 43A of the SEBI (listing Obligations and Disclosure Requirements), 2015, the Bank has a dividend distribution policy in place which sets out the parameters and circumstances that will be taken into account by Board in determining distribution of dividend to its shareholders. The policy is given in this Annual Report and is also available on

60 ¢›¸™½©¸ˆÅ¸½¿ ˆÅú ¢£œ¸¸½’Ä Directors’ Report the Bank’s website at https://www.bankofbaroda.com/policy- provisions of the SEBI (Listing Obligations and Disclosure documents.htm. Requirements) Regulations, 2015 and new SEBI Guidance Note on Board Evaluation dated January 5, 2017. Board of Directors (Appointment /Cessation of Directors during the year) Auditors’ Compliance Certificate on Corporate Governance: Appointments The Auditors’ Compliance Certificate regarding the Shri Debasish Panda was nominated as Government compliance of the conditions of Corporate Governance for the Nominee Director w.e.f. 5th April, 2018 by the Central year 2018-19 is annexed with this report pursuant to “Part ”E” Government u/s 9 (3) (b) of The Banking Companies Acquisition and Transfer of Undertakings) Act, 1970, to hold of Schedule V of the SEBI (Listing Obligations and Disclosure the post until further orders. Requirements) Regulations, 2015. Shri Shanti Lal Jain was appointed as Executive Director Business Responsibility Report w.e.f. 20th September, 2018 by the Central Government u/s Business Responsibility Report as required by SEBI has 9 (3) (a) of The Banking Companies Acquisition and Transfer been hosted on the website of the Bank (www.bankofbaroda. of Undertakings) Act, 1970 for a period of -3- years i.e. up to co.in). Any member interested in obtaining a physical copy of 19th September, 2021. the same may write to the Company Secretary of the Bank. Shri Vikramaditya Singh Khichi was appointed as Executive Directors’ Responsibility Statement Director w.e.f. 1st October, 2018 by the Central Government The Directors confirm that in the preparation of the annual u/s 9 (3) (a) of The Banking Companies Acquisition and accounts for the Financial Year ended March 31, 2019: Transfer of Undertakings) Act, 1970 for a period of -3- years i.e. upto 30th September, 2021. a) The applicable accounting standards had been followed Shri P.S. Jayakumar continues to be the Managing Director & along with proper explanation relating to material CEO on extension of the term of his office w.e.f. 13th October, departures, if any; 2018 for a period of -1- year i.e. till 12th October, 2019. b) The accounting policies framed in accordance with the Shri Srinivasan Sridhar was elected as Shareholder Director guidelines of RBI were followed and the directors had under section 9 (3) (i) of The Banking Companies Acquisition selected such accounting policies and applied them and Transfer of Undertakings) Act, 1970, for a period of -3- consistently and made judgments and estimates that years from 12th December, 2018 to 11th December, 2021 are reasonable and prudent so as to give a true and fair Dr. Hasmukh Adhia was appointed as Non-Executive view of the state of affairs of the Bank at the end of the Chairman w.e.f. 1st March, 2019 by the Central Government financial year and of the profit and loss of the Bank for u/s 9 (3) (h) of The Banking Companies Acquisition and that period; Transfer of Undertakings) Act, 1970, for a period of -3- years. c) The directors had taken proper and sufficient care for Cessations the maintenance of adequate accounting records in accordance with the provisions of applicable laws to the Shri Lok Ranjan ceased to be a Government Nominee Director w.e.f. 5th April, 2018 on the appointment of Shri Bank for safeguarding the assets of the Bank and for Debasish Panda in his place. preventing and detecting fraud and other irregularities; Shri Ashok Kumar Garg ceased to be Executive Director w.e.f. d) The directors had prepared the annual accounts on a 30th June, 2018 upon attaining the age of superannuation. going concern basis; and Shri Ravi Venkatesan, ceased to be Non-Executive e) The directors had ensured that internal financial controls Chairman w.e.f. 14th August, 2018 on completion of his followed by the Bank are in accordance with guidelines tenure of 3 years. issued by RBI in this regard and that such internal Shri Mayank K. Mehta ceased to be Executive Director financial controls are adequate and were operating w.e.f. 30th September, 2018 upon attaining the age of effectively. superannuation. Explanation: For the purposes of this clause, the Smt. Usha A. Narayanan Director, ceased to be a term “internal financial controls” means the policies Shareholders Director w.e.f. 12th December, 2018 on and procedures adopted by the Bank for ensuring the completion of her tenure of 3 years. orderly and efficient conduct of its business, including Board Evaluation adherence to Bank’s policies, the safeguarding of its With the objective to continuously improve Board governance, assets, the prevention and detection of frauds and an evaluation of the Board’s performance; performance of its errors, the accuracy and completeness of the accounting committees and individual directors including independent records, and the timely preparation of reliable financial directors is being conducted by an external consulting firm. information; The parameters of evaluation have been aligned with the f) The directors had devised proper systems to ensure

61 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

compliance with the provisions of all applicable laws The Directors acknowledge with deep appreciation the and that such systems were adequate and operating cooperation extended by all shareholders, banks and financial effectively. institutions, rating agencies, stock exchanges and all well- wishers in India and abroad. Acknowledgements The Directors also take this opportunity to place on record deep The Directors place on record their appreciation for the appreciation for the hard work and dedication of the employees contributions made by the outgoing Chairman and Non- of the Bank. Executive Director Shri Ravi Venkatesan and other outgoing Directors viz. Shri Lok Ranjan, Shri Ashok Kumar Garg, Shri Mayank K. Mehta and Smt. Usha A. Narayanan. For and on behalf of the Board of Directors, The Directors express their sincere thanks to the Government of India, RBI, Securities and Exchange Board of India, other regulatory authorities and the overseas regulators for their continued co-operation, guidance and support. P. S. Jayakumar The Directors would like to take this opportunity to express Managing Director & CEO sincere thanks to our valued clients for their continued patronage and support.

62 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19 keÀeheexjsì ieJevexbme keÀer MeleeX kesÀ Devegheeueve hej uesKeehejer#ekeÀeW keÀe Auditors’ Certificate on Compliance of Conditions of Corporate Governance – 2018-19 : he´ceeCe-he$e- -:

To, ¬¸½¨¸¸Ÿ¸Ê, The Members of Bank of Baroda ¸àj¦d¸¢Ü×¦ ¸vÖ¸z¸j½¦¬¸z¬¸l¸¸ Mumbai Ÿ¸ ¸e¥ INDEPENDENT AUDITORS' CERTIFICATE ON COMPLIANCE WITH THE CORPORATE GOVERNANCE REQUIREMENTS UNDER SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) Û oÛ| {Øi i }°j¦tÛj¦ dj¦Øi | ˆ½Å REGULATIONS, 2015 d Øl¥Øj¦}¥tl|Õˆ½Å‚›¸ºœ¸¸¥¸›¸œ¸£Ø k}Ûj¦«ˆÅ¸}°} 1. This certificate is issued in accordance with our terms of ¸Î}°Ÿ¸¸¸}¸¸ ¸àj¦d¸¢Ü×¦ ¸vÖ¸z¸ C ¸àj¦ j½¦¬¸¸˜¸ÎŸ¸¸½j¦¸j¦Û©¸÷¸¸½ô engagement with the Bank of Baroda ("the Bank"). 2. This report contains details of compliance of conditions j½¦‚›¸º³œ¸q¸¸Ûj¦¸¸l¸¸¸Î of Corporate Governance by the Bank for the year ended e}t¥«o¥j¦ àj¦¸ãØÛ}°ØãØi |j¦ March 31, 2019, as stipulated in Regulations 17-27, v¥ oÛ|zØj¦i }°j¦tÛj¦dj¦Øi | clauses (b) to (i) of Regulation 46(2) and paragraphs C, D and E of Schedule V of the Securities and Exchange CoÛ|| qj¦|| j¦f} { Û Board of India (Listing Obligations and Disclosure de¥ Øj¦dd|oÛ9j¦d|oâzÛvÛde¥j¦d|j¦}¥t Requirements) Regulations, 2015 ("Listing Regulations"). Management Responsibility l|Õj¦ÛØÕj¦d|}|j¦ }°ØØÎà 3. The compliance of conditions of Corporate Governance is }° {|ˆÅ¸zØ the responsibility of the Management. This responsibility j¦¸œ¸¸½¥½tl¸¨¸›¸½ô¬¸j¦Û©¸÷¸¸½ôj¦¸‚›¸ºœ¸¸¥¸›¸j¦›¸½j¦¸z¸¸÷¨¸œ° ¸ {¸÷¸ ¸j¦¸ includes the design, implementation and maintenance on internal control and procedures to ensure the compliance Î¸½l¸¸j¦¸œ¸¸½¥½tl¸¨¸›¸½ô¬¸Ÿ¸Ê›¸{¸¸¥÷¸¬¸o¸Û¸›¸¨¸›¸¸Ÿ¸j¦Û©¸÷¸¸½ôj¦¸‚›¸ºœ¸¸¥¸›¸ with conditions of Corporate Governance stipulated in j¦›¸½j½¦¢¥¸‡,‚¸ ÷¸¢j¦¢›¸¸ ¸¸‚¸œ°¢¨¦¸¸‚¸Êj¦Û³œ¸½k¸¸,j¦¸¸¸¥›¨¸¸›¸ Listing Regulations. ‚¸k¸k¸¸¨¸j¦›¸¸e›¸j¦Û¢q¸ŸŸ¸½z¸ÛÎ¸½l¸Û Auditors Responsibility 4. Our responsibility is limited to examining procedures k}Ûj¦«j¦ÛqzÛ and implementation thereof, adopted by the Bank ÎŸ¸¸Û¢q¸ŸŸ¸½z¸Û,j¦¸œ¸¸½¥½tl¸¨¸›¸½ô¬¸j¦Û©¸÷¸¸½ôj¦¸‚›¸ºœ¸¸¥¸›¸¬¸º¢›¸¢ä¸÷¸j¦›¸½ for ensuring compliance with the conditions of the Corporate Governance. It is neither an audit nor an j½¦¢¥¸‡ ¸àj¦¸¸¸‚œ¸›¸¸e¥œ°¢¨¦¸¸‚¸Ê‚¸e›¸j½¦j¦¸¸¸¥›¨¸¸›¸j¦Ûq¸¸ o¸j¦›¸½ expression of opinion on the financial statements of the ÷¸j¦¬¸Û¢Ÿ¸÷¸Î¸½l¸Û¸Î›¸÷¸¸½ ¸àj¦j½¦¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦Û¥¸½k¸¸œ¸Û¸¸Î›¸ Bank. ÎÛf›¸œ¸ÎŸ¸¸Û¸¸ 5. We have examined the books of account and other relevant records and documents maintained by the ÎŸ¸›¸½ ¸àj¦¸¸¸j¦¸œ¸¸½¥½tl¸¨¸›¸½ô¬¸j¦Û©¸÷¸¸½ôj½¦‚›¸ºœ¸¸¥¸›¸j½¦¬¸ ¸ {¸Ÿ¸Ê‚¸æ¸¬÷¸ Bank for the purpose of providing reasonable assurance Î¸½›¸½j½¦¢¥¸‡ ¸àj¦j½¦ ¸ÎÛk¸¸÷¸¸Ê‚¸÷¸÷¬¸ ¸ {¸Û‚›¸‚¢ã¸¥¸½k¸¸Ê‚¸ on the compliance with Corporate Governance z¬÷¸¸¨¸½q¸¸Êj¦Ûq¸¸ o¸j¦ÛÎ requirements by the Bank. 6. We conducted our examination in accordance with ÎŸ¸›¸½ã¸¸÷¸Û¸¬¸›¸zÛ¥¸½k¸¸j¦¸¬¸¿¬˜¸¸›¸¸¸¸q¸¸Û¢¨¸©¸½«¸œ°¸¸½q¸›¸j½¦¢¥¸‡ the Guidance Note on Reports or Certificates for ¢œ¸¸½t¥¸¸œ°Ÿ¸¸¸œ¸¸œ¸Ÿ¸¸l¸¥z©¸Û¥›¸¸½t‚¸j¦¸œ¸¸½¥½tl¸¨¸›¸½ô¬¸œ¸œ°Ÿ¸¸¸›¸ Special Purposes and Guidance Note on Certification of Corporate Governance, ("Guidance Notes") both, Ÿ¸¸l¸¥z©¸Û¥›¸¸½t CŸ¸¸l¸¥z©¸Û¥›¸¸½t z¸½›¸¸Êj½¦‚›¸º¬¸¸q¸¸¿o¸j¦ÛÎŸ¸¸l¸¥z©¸Û¥ issued by the Institute of Chartered Accountants of India. ›¸¸½tŸ¸ÊÎŸ¸¬¸½‚œ¸½¢¸÷¸Î¢j¦ÎŸ¸¬¸¿¬˜¸¸›¸¸¸¸›¸¢÷¸j¦Ÿ¸¥¸¬¸¿¢Î÷¸¸¬¸¿ ¸¿{¸Û The Guidance Notes require that we comply with the ›¸¢÷¸j¦‚¸¨¸©¸j¦÷¸¸‚¸Êj¦¸‚›¸ºœ¸¸¥¸›¸j¦Ê ethical requirements of the Code of Ethics issued by the Institute. ÎŸ¸›¸½l¸º¸¨¸Ï¸¸¢›¸¸¿¸¸Ÿ¸¸›¸j¦ ‡¬¸§¸¬¸Û ,l¸º¸¨¸Ï¸¸¢›¸¸¿¸¸j¦Û¥¸½k¸¸ 7. We have complied with the relevant applicable œ¸Û¸¸‚¸‡½¢÷¸Î¸¢¬¸j¦¢¨¸Ï¸Û¸¬¸o¸›¸¸j¦Û¬¸Ÿ¸Û¸¸j¦›¸½¨¸¸¥¸Û¬¸¿¬˜¸¸‚¸Ê requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and ‚¸‚›¸‚¸æ¸¸¬¸›¸‚¸¬¸¿ ¸¿¢{¸÷¸j¦¸¬¸½¨¸¸‡¿œ°z¸›¸j¦›¸½¨¸¸¥¸Û¬¸¿¬˜¸¸‚¸Ê Reviews of Historical Financial Information, and Other œ¸¥¸¸l¸‚œ¸½¸¸‚¸Êj¦¸œ¸¸¥¸›¸¢j¦¸¸Î Assurance and Related Services Engagements. Opinion 8. In our opinion, and to the best of our information and ÎŸ¸¸Û¸¸Ÿ¸Ê‚¸ÎŸ¸¸Ûœ¸¸¥¬¸o¸›¸¸‚¸ ¸àj¦¸¸¸ÎŸ¸½¢z‡l¸‡¬œ¸«tÛj¦¸ according to the explanations given to us and the ‚¸‚ã¸¸¨¸½z›¸¸Êj½¦‚›¸º³œ¸ÎŸ¸œ°Ÿ¸¸¢¸÷¸j¦÷¸½Îà¢j¦ ¸àj¦›¸½¬¸o¸Û¸›¸ representations provided by the Bank, we certify that ¢¨¸¢›¸¸Ÿ¸Ÿ¸Ê¢›¸{¸¸¥¢÷¸j¦¸œ¸¸½¥½tl¸¨¸›¸½ô¬¸j¦Û©¸÷¸¸½ôj¦¸œ¸¸¥¸›¸¢j¦¸¸Î the Bank has complied with the conditions of Corporate Governance as stipulated in the Listing Regulations.

63 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

ÎŸ¸¬œ¸«tj¦÷¸½Îà¢j¦e¬¸‚›¸ºœ¸¸¥¸›¸¬¸½ ¸àj¦j¦Ûã¸¢¨¸«¸Ÿ¸Ê¨¸¨¸Î¸¸¥÷¸¸œ¸ 9. We state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency ‚¸›¸ÎÛœ° ¸¿{¸÷¸¿¸¸¸¸ ¸àj¦j½¦j¦¸¸¥¢›¸¨¸¸¥Îj¦Ûz¸÷¸¸¸¸œ°ã¸¸¢¨¸j¦÷¸¸œ¸ or effectiveness with which the management has j¦¸½e¥‚¸æ¸¸¬¸›¸Î conducted the affairs of the Bank. f}lœ¸£}°Ø { Restriction on Use ¸Îœ°Ÿ¸¸¸œ¸¸ ¸àj¦j½¦¬¸z¬¸¸Êj¦¸½¬¸¿ ¸¸½¢{¸÷¸‚¸q¸¸Û¢j¦¸¸l¸¸¸Î¢q¸¬¸j¦¸ 10. The certificate is addressed and provided to the members of the Bank solely for the purpose to enable ‡j¦Ÿ¸¸¸f´½©¸Î¢j¦ ¸àj¦¬¸o¸Û¸›¸¢¨¸¢›¸¸Ÿ¸j¦¸œ¸¸¥¸›¸j¦¬¸j½¦‚¸e¬¸j¦¸ the Bank to comply with the Listing Regulations, and it fœ¸¸¸½l¸¢j¦¬¸Û‚›¸¨¸¢§÷¸¸¸¸¢j¦¬¸Û‚›¸f´½©¸j½¦¢¥¸‡›¸ÎÛ¿¢j¦¸¸ should not be used by any other person or for any other q¸¸›¸¸o¸¸¢Î‡÷¸z›¸º¬¸¸,¢j¦¬¸Û‚›¸œ°¸¸½q¸›¸j½¦¢¥¸‡¸¸¢j¦¬¸Û‚›¸¨¸¢§÷¸ purpose. Accordingly, we do not accept or assume any ¸¸¸¢ ¸›¸¸œ¸¨¸¥¢¥¸¢k¸÷¸¬¸ÎŸ¸¢÷¸j½¦e¬¸œ°Ÿ¸¸¸œ¸¸j¦¸½¢zk¸¸j¦¢j¦¬¸Ûj½¦ liability or duty of care for any other purpose or to any other person to whom this certificate is shown or into Î¸˜¸¥¸l¸›¸½œ¸e¬¸¬¸½„÷œ¸››¸¢j¦¬¸Ûœ°j¦¸j¦Ûz½¸÷¸¸¸¸‚¬¸¸¨¸{¸¸›¸Ûj½¦¢¥¸‡ whose hands it may come without our prior consent in ÎŸ¸j¦¸½e¥¢q¸ŸŸ¸½z¸Û›¸ÎÛ¿¥¸½÷¸½ writing.

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64 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19 keâeHeexjsš ieJeveXme efjHeesš& 2018-19 Report on Corporate Governance 2018-19 l}Ö¡ÏÙ~ áj§j§Ü}Ù BANK’S PHILOSOPHY ON CODE OF GOVERNANCE x àj¦d¢Ü×¦ vÖzj¦}¥tl|Õ}fØj¦t}·Ø d}||j¦}°Ø x Bank of Baroda is committed to adopting best recognized }°Ø ·ÎdiÛÎ}·Ø}kfØ|j¦i| Ø}°Ø corporate governance practices and continuously benchmarking itself against each such practice. The ÎfØj¦tj¦}¥tl|Õj¦d|}| àj¦j¦}o|«j¦ij¦ adherence to best corporate governance practices is an dã||d lÎ integral part of Bank’s operations. x Çã«j¦}¥tl|Õ lu|Øj¦}° {|j¦ij¦ÎØ}¥{ x Corporate Governance is emerged as an essential tool in |j¦fãÎcÖj¦}¥tl|Õ}·Ø }{¥Øj¦ cÖØ || the organizational management globally. Strong corporate dã}°zØ cÖ|j¦idØ|ØÎØ}¥Île¥Îà governance practices have become crucial in achieving competitive advantage and positively impacting profitability. x àj¦j¦Ûj¦}¥tl|Õ|Ø}z¥Øj¦Ød x Bank’s corporate governance philosophy is reflected by the q zÎØq««}°Ø ØÎØÛÎ values of transparency, professionalism and accountability. x àj¦d¢Ü×¦ vÖzÎ|ØÎj¦j¦}¥tl|Õj¦ij¦|j¦ x Bank of Baroda believes that there is a need to view dj¦Øj¦Ût|zkqi§«j¦j¦ j¦ lu| Corporate Governance as more than just regulatory j¦}¥tzØd{j¦«j¦Ûdj¦d{j¦{j¦ cÖ|Î requirements as there is a generic connection among the organization of business, corporate responsibility and d}«ij¦zqvÖÎiÎà shareholder’s wealth maximization àj¦|d}|ÛãÛlØ{««j¦}¥tl|Õj¦· Øj¦¥}Û The Bank has infused the philosophy of corporate governance }d}|Î àj¦e|d««| ØfØj¦tØ|«z into all its activities. The Bank constantly strives towards }°ØÎØÎdd}|ãÛÎØ{j¦«{j¦«l°Îj¦« betterment of these aspects and thereby perpetuates it into j¦¥o«dqj¦d|z«j¦izÛm¥j¦j¦dy¥j¦ generating long term economic value for all its stakeholders including shareholders, customers, employees and other society «dØ·j¦ØÎØÎ àj¦j¦j¦}¥tl|Õ||kØ members. Bank’s corporate governance is governed by the · Ø«¸ØÎØÎ¡ following principles: x {j¦«j¦j¦ cÖ|df|Î«d{j¦ØØ}}Î o| x Enhance and maximize the shareholders value x ãÛÎØ{j¦«j¦y Î«|}|Øj¦i }z¥Ø x Fair, ethical and transparent in dealings with all the stake x l°Îj¦«j¦¥o«i Îz¤qÎØj¦ãÛÎØ{j¦«j¦ÎØ« holders j¦ x Protection of the interest of all stake holders including x j¦¥|}z|i l°Îj¦ÎØq zÎÛ|ÅØj¦|dãÛ customers, employees and society at large x Ensuring accountability for performance and customer Ø«}fØj¦tØ}°}Øj¦| service and to achieve excellence at all levels x àj¦j¦j¦¥|}z|i }o|« {ØãÛ«« x Timely and accurate disclosures on all matters pertaining }i tÛj¦}°j¦tÛj¦ to the performance and operations of the Bank x Î |zÛ«j¦}|j¦ØÎij¦| x Carrying the business adhering to our core values x fØj¦tØj¦j¦}¥t|ØØØj¦| x Creating corporate leadership of highest standard àj¦j¦ |zÛe}°j¦Îà¡ The core cardinal values of the Bank are: Ø|u¡Îd}|ãÛÎØ{j¦«j¦yÛj¦Õd Î 1. Integrity: We are ethical and transparent in our words, «|Øj¦d}zÛ¥Îà actions and dealings with all stakeholders. l°Îj¦j¦|®ÛØÎÛãÛlØ{«j¦j«¦®Îl°Îj¦«j¦ÎØÎ 2. Customer Centricity: Our customers’ interests lie at the core of all our actions. Î¡Î}°Øj¦}yØ««ãÛ{¥ |ikØÎàdd}| 3. Courage: We are resilient in the face of adversity and having «}Çj¦ØÎà faith in our beliefs. fØÎ}¥Ø¡Îd}| àj¦j¦}°Øgq¥fØÎi d}|Øj¦ 4. Passionate Ownership: We display energy, enthusiasm ãkØÎàdØyij¦yj¦ àj¦j¦ij¦¥j¦ØÎà and commitment towards our Bank and we work together ||Ø¡Î|Û|o« {¥|j¦ØÎà for the Bank. fØj¦tØ¡Îd}|Û|ÛØ«}°«d}°¨¦d««lØ{ 5. Innovation: We create value with break-through ideas. j¦|j¦}°Ø|j¦ØÎà 6. Excellence: We strive for continuous improvement in our policies, systems and processes.

65 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

àj¦Î|ØÎj¦q Øj¦}¥tl|Õij¦qzÛ|}Ø Bank believes that sound corporate governance is a culture }z¥Ø| ØØi }°ãØ}zj¦Øj¦Û j¦ØÎq lu|« of accountability, fairness, transparency, consistency and effectiveness which is practiced across the organization. The ¥}°oØÎ àj¦ij¦oÛ ·|j¦Îqij¦j¦}|Û|ÎÛ Î Bank is a listed entity; not a company but body corporate d}Ø àj¦j¦Ûj ¦}|Û f}¨¦«j¦dq¥|i d Ø d{| under The Banking Companies (Acquisition and Transfer of dy¥Ø¤ àj¦j¦Ûj ¦}|Ûdq¥|d{|j¦ØÎØ|j¦j¦}¥tÎØy Undertakings) Act, 1970 and is regulated by Reserve Bank of ãØÛ^¥ àj¦¸|ØÎØÎdØ¡ àj¦ Û oÛ| India. Bank has complied with the provisions of SEBI (Listing j¦i }°j¦tÛj¦dj¦Øi ||j¦}°{|«j¦f Obligations and Disclosure Requirements) Regulations, 2015 except where the provisions of these regulations are not in ÛØj¦}|j¦lej¦j¦|| àj¦j¦Ûj ¦}|Û conformity with The Banking Companies (Acquisition and f}¨¦«j¦dq¥|i d Ø d{|j¦}°{|de { Transfer of Undertakings) Act, 1970 and the guidelines issued «ãØÛ^¥ àj¦ØyãØj¦¸qÛz|z¥«j¦y by Reserve Bank of India and Government of India. lØ|ÎÛ ÎØÎà A report on implementation on provisions of Corporate àj¦«j¦}¥tl|Õj¦}°{|«j¦d|}|}ij¦}t¥||| Governance in the Bank is as below: Î¡ BOARD OF DIRECTORS }{j§¡v Role and Composition j§¦{Ùi¡lu} The role of the Board includes amongst others: |zj¦ vj¦j¦¥zØd|zØ«j¦y|||Î¡ x To establish policies and policy framework, x |ÛØ d|ÛØlØÝ¦j¥¦j¦y}Øj¦| x To make significant and strategic decisions, x y¥j¦i |ÛØ}j¦|¥| x To oversee the pursuit of objectives, x }°}Øj¦dj¦| x To protect and maximize the interest of the stakeholders x ÎØ{j¦«j¦ÎØ«j¦Ûj¦|df«·j¦| x To oversee the risk profile of the Bank x àj¦j¦qk}°Ü¦ej¦Û|l|Ûk| The composition of Board of Directors is governed by the |zj¦ vj¦lu| àj ¦l|d{| àj ¦lj ¦}|Û f}¨¦« provisions of The Banking Regulation Act, 1949, The Banking j¦dq¥|i d Ø d{|y {ØØytÐÛj¦Ø àj¦ Companies (Acquisition & Transfer of Undertakings) Act, }° {|i {}°{| q| y {Ø j¦}°{|«¸ 1970, as amended and The Nationalized Banks (Management & Miscellaneous Provisions) Scheme, 1970, as amended. ØÎØÎo¥j¦ÛyØj¦d|}|zj¦vj¦ The composition of the Board as on 31st March, 2019 is as per ~d}¡|i¡i«}°ØØÎ Annexure-1 and 1A. }°Øj¦|zj¦i u}° {|j¦¥j¦«dy¥Ø¤j¦}° {|tÛq« Each Director and Senior Management Personnel i.e. Core ãÛÎ}° {j¦Øyãl}°kÎàdo ÎØj¦d Øl¥Ø Management Team comprising all General Managers and ØÎØÎàq|zj¦v¸d|zØj¦zÛle¥ÎØy Departmental Heads are governed by Code of Conduct q àj¦j¦Û etZZZEDQNRIEDURGDFRP}klÎ|zj¦ approved by the Board which is posted on Bank’s website i.e. www.bankofbaroda.com. All the Board Members and Senior vj¦ãÛz«Øyu}° |{|j¦¥j¦«|do ÎØj¦ Management Personnel have affirmed the compliance of the d|}|j¦Û}tj¦zÛÎ Code. }{j§¡vj§Ü uj¬§¢ MEETINGS OF BOARD àj¦j¦ij¦¥«j¦j¦âÎ uj«¦dqØj¦|ÛÎØÛÎÏÛ Board is required to meet a minimum of six times a year. During ¥j¦z||zj¦ vj¦Û uj«¦ }||ÎeÕ uj¦«j¦Û the Financial Year 2018-19, seventeen meetings were held. ØÛk«d|zj¦«j¦Ûf}yØ|||Îà¡ The dates of the meetings and attendance of the Directors are dqØ uj«¦¡ as under: uj¦«j¦ÛØÛk«¡ No. of Meetings held: 17 i Dates of Meetings: 25.05.2018, 07.06.2018, 29.06.2018, 13.07.2018, 27.07.2018, 08.08.2018 & 09.08.2018, 10.09.2018, 29.09.2018, 12.10.2018, 30.10.2018, 29.11.2018, 10.12.2018, 02.01.2019, 10.01.2019, 29.01.2019, 20,02,2019, 20.03.2019

66 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

f}j§j§¦j§¬ uj§¬¬f}j§Ü dqÙ uj¬§ f~zÙ }{j§j§} Name of the Director d|Period Meetings held Meetings during their Attended Tenure v¢ÎkdcÖ Dr. Hasmukh Adhia 01.03.2019 to 31.03.2019 1 1 Û«j¦t| Shri Ravi Venkatesan* 01.04.2018 to 13.08.2018 6 6 Û}Ûiqj¦ Shri P. S. Jayakumar 01.04.2018 to 31.03.2019 17 17 Û j¦j¦ÎØ Shri Mayank K. Mehta* 01.04.2018 to 30.09.2018 8 8 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 3 3 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 17 16 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 10 10 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 9 9 Ûz Û} v Shri Debasish Panda 05.04.2018 to 31.03.2019 17 6 Ûdqj¦ Shri Ajay Kumar 01.04.2018 to 31.03.2019 17 15 Ûl}j¦dl° Shri Gopal Krishan Agarwal 01.04.2018 to 31.03.2019 17 16 }° qj¦Û¥ Prof. Biju Varkkey 01.04.2018 to 31.03.2019 17 16 Ûfi|| Ms. Usha A. Narayanan* 01.04.2018 to 11.12.2018 12 11 ÛãØj¦vÛv l Shri Bharatkumar D Dangar 01.04.2018 to 31.03.2019 17 16 ÛØÛàzj¦ Smt. Soundara Kumar 01.04.2018 to 31.03.2019 17 14 ÛÛ||Û{ Shri Srinivasan Sridhar 12.12.2018 to 31.03.2019 5 4 Ûj¦ q| Shri Lok Ranjan* 01.04.2018 to 04.04.2018 0 0 ¥j¦z|z|ÎÛ Î *ceased to be member during the year. ej¦dØ§Ølj¦¥}j¦|zj¦«j¦Ûzdl uj«¦j¦ In addition two separate meetings of non-executive directors z||||Îe¥¡ were also held during 2018-19 as under: uj¦«j¦ÛØÛk« Dates of Meeting: 29.06.2018, 29.01.2019 }{j§¬j§¦~j§¬j§ÜÙ¡f~Ù¡ COMMITTEES / SUB-COMMITTEE OF DIRECTORS / EXECUTIVES àj¦j¦|zj¦v|j¦¥|ÛØj¦ÎÏ}¥«}|l|Ûk|ÎØ Board has constituted various Committees of Directors and / or |zj¦«ddyj¦¥}j¦ j¦Ûã||Ø«j¦lu|j¦ÎÎÏ}¥ Executives to look into different areas of strategic importance. Ø |||Îà¡ The important Committees are as under: |zj¦vj¦Û}° |{|Ø iÛ Û 1. Management Committee of the Board (MCB) |zj¦vj¦Ûhd|z|Ø ÛiÛ Û 2. Credit Approval Committee of the Board (CACB) |zj¦ vj¦Ûk}ÛØ iÛ Û 3. Audit Committee of the Board (ACB) |zj¦vj¦Ûqk}° {|Ø 4. Risk Management Committee of the Board ÎØ{j¦ {}j¦Ø 5. Stakeholders Relationship Committee | j¦|Ø 6. Nomination Committee l°Îj¦Ø 7. Customer Service Committee vÖÛj¦Û{k{vÖÛ |{ÛØ 8. Committee on High Value Frauds o|}°µlj¦Ûj¦¥|ÛØ {ÛØ 9. IT Strategy Committee |zj¦vj¦Û| {|}|ÛØ}j¦Îj¦Ø 10. Strategic Advisory Committee of the Board on HR |zj¦«j¦ÛØ 11. Committee of Directors Û|l|ÛØ 12. Committee for Monitoring of Recovery vd ØØ 13. Shares/Bonds Transfer Committee }j¦Ø 14. Remuneration Committee l°ÛÏÛ|i Ûid}|zj¦ vj¦Ût lØ 15. Steering Committee of the Board on Rural – FI & CSR oÛ ·|ÎiÛd| l«j¦il|ÕØ 16. Governance Committee for Unlisted Subsidiaries ezØ|oj¦j¦Ø¥d«}ÛØ 17. Review Committee on Wilful Defaulters 67 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

}{j§¡vj§Ü~±¡|}Ù iÜÜ 1. Management Committee of the Board (MCB) Ø {ÛÎØ}¥«qfooj¦h}°Øj¦Û The Committee considers various business matters of material significance like sanction of high value credit proposals, qÛrØ t¤tkØ}°Ø} qÛlØi q {ÛkoÕj¦Û compromise / write-off proposals, sanction of capital and qÛ}|z|dz}oj¦ØÛÎ revenue expenditure, premises, investments, donations etc. àj¦j¦Ûj ¦}|Û f}¨¦«j¦dq¥|i d Ø d{|j¦Û{ It consists of Managing Director & CEO, Executive Director(s) Û j¦ØÎØ|Ø|zj¦««}° {|zj¦i kj¦¥}j¦ and Directors nominated by Government of India under Section 9(3)(c) and three Directors from amongst those appointed under d{j¦Ûj¦¥}j¦|zj¦ l ØyãØj¦¸|Ø|zj¦ sub section (e) (f) (h) and (i) of section 9(3) of The Banking Øy j¦Ûf}{ e¥ iÜ¦ io Øy de¥ j¦ØÎØ|§Øj¦ili Companies (Acquisition and Transfer of Undertakings) Act, |zj¦««ØÛ||zj¦ÎØÎà 1970. uj¦«j¦ÛØÛk«i |zj¦«j¦Ûf}yØ|||Î¡ The dates of the meetings and attendance of the Directors are dqØ uj«¦¡ as under: uj¦«j¦ÛØÛk«¡ No. of Meetings held: 34 Dates of Meetings: 06.04.2018, 21.04.2018, 03.05.2018, 08.05.2018, 15.05.2018, 22.05.2018, 05.06.2018, 12.06.2018, 19.06.2018, 26.06.2018, 30.06.2018, 17.07.2018, 24.07.2018, 31.07.2018, 09.08.2018, 14.08.2018, 20.08.2018, 28.08.2018, 04.09.2018, 24.09.2018, 29.09.2018, 09.10.2018, 19.10.2018, 23.10.2018, 13.11.2018, 22.11.2018, 06.12.2018, 26.12.2018, 10.01.2019, 22.01.2019, 12.02.2019, 05.03.2019, 12.03.2019, 28.03.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü dqÙ uj¬§ f~zÙ }{j§{j§} Name of Director / Member d|Period Meetings held Meetings during their Attended Tenure Û}Ûiqj¦ d{ Shri P.S. Jayakumar (Chairman) 01.04.2018 to 31.03.2019 34 30 Û j¦j¦ÎØ Shri Mayank K. Mehta* 01.04.2018 to 30.09.2018 21 19 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 11 7 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 34 28 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 15 14 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 13 13 Ûdqj¦ Shri Ajay Kumar 01.04.2018 to 31.03.2019 34 18 }° qj¦Û¥ Prof. Biju Varkkey* 01.04.2018 to 14.05.2018 4 2 }° qj¦Û¥ Prof. Biju Varkkey* 25.05.2018 to 24.11.2018 20 11 ÛãØj¦vÛv l Shri Bharatkumar Dhirubhai Dangar* 01.04.2018 to 30.06.2018 11 10 ÛØÛàzj¦ Smt. Soundara Kumar* 01.04.2018 to 21.07.2018 12 3 ÛØÛàzj¦ Smt. Soundara Kumar* 27.07.2018 to 26.01.2019 17 11 ÛØÛàzj¦ Smt. Soundara Kumar 20.03.2019 to 31.03.2019 1 0 ÛÛ||Û{ Shri Srinivasan Sridhar 20.03.2019 to 31.03.2019 1 1 ¥j¦z|z|ÎÛ Î * Ceased to be member during the year. ÏÛ¥j¦z|Ø||Û q ·j¦ The Committee approved -244- Fresh sanctions, -83- Reviews yÛÛd{|}t i }tÕl with increase, -223- Reviews, -129- modifications, -24- confirmations and -218- reportings during the FY 2018-19. j¦d|z|j¦ 2. Credit Approval Committee of the Board (CACB) }{j§¡vj§Ühd}{}Ù ÜiÜÜ The credit proposals which exceed the powers delegated ih}°Øq}° {|zj¦Ûe¥dj¦}°qØ§Ø« to Managing Director & CEO and are upto `400 crores are d{j¦ÎØyj¦vÖØj¦j¦h}°Ø«j¦ÛiÛ Û¸ q considered for approval by the CACB. The Committee comprises j¦qØÎØ«ãÛ}¥j¦j¦|zj¦ÛiÜ¦dÛddi of all Whole Time Directors, CFO, CRO and respective heads

68 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

·t¥j¦j¦}°k«j¦Î uj¦«j¦ÛØÛk«i |zj¦«j¦Û of verticals. The dates of the meetings and attendance of the f}yØ|||Î¡ Directors are as under: dqØ uj«¦¡ No. of Meetings held: 25 Dates of Meetings: 25.04.2018, 07.05.2018, 26.05.2018, uj¦«j¦ÛØÛk«¡ 06.06.2018, 15.06.2018, 22.06.2018, 04.07.2018, 21.07.2018, 03.08.2018, 10.08.2018, 24.08.2018, 03.09.2018, 15.09.2018, 27.09.2018, 15.10.2018, 05.11.2018, 11.12.2018, 21.12.2018, 31.12.2018, 07.01.2019, 23.01.2019, 13.02.2019, 01.03.2019, 16.03.2018, 30.03.2019 f}j§j§¦j§¬ uj§¬¬ dqÙ uj¬§ f}j§Ü }{j§{j§} Name of the Director d|Period Meetings held f~zÙ during their Meetings Tenure Attended Û}Ûiqj¦ d{ Shri P.S. Jayakumar (Chairman) 01.04.2018 to 31.03.2019 25 25 Û j¦j¦ÎØ Shri Mayank K Mehta* 01.04.2018 to 30.09.2018 14 13 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 6 4 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 25 20 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 12 12 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 11 9 Ûl}Ø|ÛiÜ¦d Shri Ramesh Gopalratnam – CFO 01.04.2018 to 31.03.2019 25 21 Ûãj¦¥Ûdd Shri Bhaskar Sharma – CRO* 01.04.2018 to 31.08.2018 11 7 Ûi|j¦ mÛdd Shri N.K. Singhal – CRO* 01.09.2018 to 31.10.2018 3 1 Ûj¦qÛlÛdd Shri K.G. Goyal – CRO 01.11.2018 to 31.03.2019 10 9 ¥j¦z|z|ÎÛ Î *ceased to be member during the year ÏÛ¥j¦z|Ø||Û q ·j¦ The Committee approved -113- Fresh sanctions, -90- Reviews with increase, -321- Reviews, -175- modifications, -25- yÛÛd{|}t«d}tÕl confirmations and-67- reportings during the FY 2018-19. j¦d|z|j¦ 3. Audit Committee of the Board (ACB) }{j§¡vj§Ük~ ÜÙ iÜÜ The functions of ACB, interalia, include iÛ Ûj¦j¦Õ«d| Ø«j¦yy||Îà x ACB provides directions and oversees the operations of x k}ÛØl° àj¦j¦k}Û {Ûj¦Õj¦}o|«j¦ audit function and audit plan of the Bank including the Øyk}Ûdq|j¦zzØÛÎØyf|j¦Ûzkkj¦ØÛÎ internal audit organization, its operation and quality, internal q«d|Øj¦k}ÛdqØj¦|f|j¦}o|i lÏ control recommendations and follow-up of the suggestions d Øj¦| ØØ«d àj¦j¦d Øj¦ØÛ¥ {j¦ ÎÛ of Internal / concurrent/ Statutory/External Auditors of the k}Ûj¦«j¦r«j¦d|Ø¥|ÎÎ àj¦¸j¦Û Bank. It also reviews KYC-AML compliance by the Bank, major areas of housekeeping, exception reporting and iiid|}|Îfj¦Û} lj¦}°k|j¦i {j¦ compliance of regulatory and statutory guidelines. z|z¥«j¦Ûd}zØj¦}tÕli d|}|j¦ÛÛãÛj¦ØÛÎ x It reviews the adequacy of internal control systems and x Îd Øj¦| }·Øj¦Û}¥}ØØØy àj¦j¦ÏÛqk}° {| reviews the financial, risk management, IS Audit, and de¥ik}Ûi àj¦j¦Ûk|ÛØ«}°Û|ÛØ«j¦ÛÛj¦ØÛÎ accounting Policies / Systems policies of the Bank. x k}ÛØ àj¦j¦ÏÛ}tÕl}·Øj¦|{¥i Û x The committee assesses and reviews the financial reporting j¦ØÛÎØj¦Î|ÅØÎj¦j¦ÏÛÎÛÎài {Ø system of the Bank to ensure that the financial statements z|z¥«j¦d|}|j¦lÎÎØÎÛ¥j¦ÏÛ« are accurate and in compliance with relevant guidelines. j¦d Ø}z|}Î {j¦k}Ûj¦«o¥j¦ØÛ It interacts with Statutory Auditors before finalization of ÎÛj¦ØÛÎØy v¥j¦d|z|j¦i ØØj¦ØÛÎ quarterly / annual financial statements; reviews them and recommends to the Board for approval. x k}ÛØ Ûdd{|j¦Û{j¦d Øl¥Ø àj¦j¦ x ACB follows up for compliance of all the issues raised by qkd{Ø}¥j¦z|ãØÛ^¥ àj¦¸fuiliãÛ RBI, during Risk Based Supervision of the Bank under ´«j¦d|}|j¦iÜ¦¢d}j¦ØÛÎÎ¢ lÜ¦¢¥d¢vt}t¥ Section 35 of B. R. Act 1949. It also follows up on various iiÜ¦id «fuiliã||´«}ãÛÜ¦¢d}j¦ØÛÎ issues raised in the Long Form Audit Report (LFAR)

69 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ø«j¦} ozÎà Ø¥|«z q«Îà The Committee comprises of -5- members (Presently L ãØj¦j¦|Ø|zj¦ LL ãØÛ^¥ àj¦j¦|Ø|zj¦ -4- members) (i) GOI Nominee Director (ii) RBI Nominee Director, (iii) Bank’s Executive Director- In charge of Internal LLL àj¦j¦j¦¥}j¦|zj¦d Øj¦k}Ûj¦Õj¦}°ãÛ LY Audit Function (iv) CA Director (v) One Non-Executive Ûi|zj¦Øy Y ij¦lj¦¥}j¦|zj¦ Director. dqØ uj«¦¡ No. of Meetings held: 13 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 09.05.2018, 24.05.2018, 25.05.2018, 12.07.2018, 26.07.2018, 27.07.2018, 10.09.2018, 12.10.2018, 29.10.2018, 30.10.2018, 02.01.2019, 28.01.2019, 29.01.2019

f}j§j§¦j§¬ uj§¬¬f}j§Ü dqÙ uj¬§ f~zÙ }{j§j§} Name of the Director d|Period Meetings held Meetings during their Attended Tenure Ûl}j¦dl° d{ Shri Gopal Krishan Agarwal(Chairman) 12.12.2018 to 31.03.2019 33 Ûl}j¦dl° z Shri Gopal Krishan Agarwal (Member) 01.04.2018 to 11.12.2018 10 10 Û Øq| Shri Shanti Lal Jain 12.10.2018 to 31.03.2019 55 Ûz Û} v Shir Debasish Panda 05.04.2018 to 31.03.2019 13 3 Ûdqj¦ Shri Ajay Kumar 01.04.2018 to 31.03.2019 13 12 Ûfi|| Ms. Usha A. Narayanan* 01.04.2018 to 31.08.2018 64 Ûfi|| Ms. Usha A. Narayanan* 03.09.2018 to 11.12.2018 44 ÛØÛ}}|l}Ø Smt. Papia Sengupta* 01.04.2018 to 12.10.2018 88 Ûj¦ q| Shri Lok Ranjan* 01.04.2018 to 04.04.2018 00 ¥j¦z|z|ÎÛ Î *ceased to be member during the year. ÏÛ¥j¦z|iÛ Û|d|j¦d||kØj¦Û During FY 2018-19, ACB inter-alia approved/reviewed the Ûj¦Û¡ following: x de¥ik}Û|ÛØj¦ {Øq¥|j¦d|z| x Approval of revised version 7.0 of IS Audit Policy x ØÛ¥k}Û|ÛØj¦ÛÛ x Review of Concurrent audit Policy x ã||ãl«j¦Û|ÛØ«j¦d|z| x Approval of Policies from various verticals. x zÛ|j¦«¸d| l«kd«j¦Û|j¦q o x Regulatory examination of Subsidiaries / Branches by x qk||Ûj¦q| di}Û j¦d Øl¥Ød Ûde¥j¦Û Overseas Regulator t}}«j¦ÛÛ x Review of observations made by RBI under Risk Mitigation Plan (RMP-2017) x {k{vÖÛj¦« ki d{j¦j¦ j¦ àj¦Ø}}Øj¦| j¦iãØÛ^¥ àj¦j¦ ØØj¦|j¦i àj¦j¦}°{j¦Øj¦Øy x Authorized Bank to recommend to RBI for closure of -26- fraud cases (Rs 1 lakh & above) & authorized the kj¦j¦ zj¦|j¦i àj¦j¦}°{j¦Øj¦ Bank for closure of -12- cases (below Rs 1 lakh) at Bank x ØÛ|« àj¦«j¦|zj¦ v«¸|}°Øj¦d|z|j¦ end. z}¥ØÛ¥q àj¦d}¥ØÛ¥z| àj¦j¦{j¦«j¦ àj¦ x Recommended to the Board for approval of Share d¢Ü×¦ vÖzj¦d t|j¦i|d|}Øj¦d|z| Exchange Ratio for allotment of BOB Shares to ÎØ v¥j¦ ØØj¦ the shareholders of eVijaya Bank and eDena Bank consequent to amalgamation proposal approved by the }{j§¡vj§Üqk~±¡|}Ù¢ Board for three Banks. qk}° {|Ø àj¦¸fuiqÎl°qkj¦ÛÛ 4. Risk Management Committee of the Board: i j¦|j¦ØÛÎ àj¦|qk}° {| lu|Øj¦c oqk Risk Management Committee reviews and evaluates the overall · Øqk}°¨¦qk| dqkk}Ûj¦ risks assumed by the Bank. Bank has set up risk management j¦oØqk}° {|ãÛj¦i o|etØ architecture comprising Risk Management Organizational j¦ÛÎj¦ã||«j¦qk«dy¥Ø¤hqk qqk Structure, Risk Principles, Risk Processes, Risk Controls and Øy}o|Øj¦qk«j¦|{¥}° {||l|ÛØy| Risk Audit all with a view to identify, manage, monitor and control j¦qj¦ various categories of risks, viz. Credit Risk, Market Risk and Operational Risk.

70 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

àj¦j¦kqkd{j¦Û Ûdd eØj¦ qj¦Îàqk Chief Risk Officer (CRO) of the Bank is the Convener of the Committee. To strengthen the expertise on Risk Management, }° {|j¦«Øj¦cÖ ||j¦i àj¦|qk}° {|j¦ Bank has also inducted three (presently two) specialists in the ØÛ|« Ø¥|« j¦|zj¦ vj¦Îj¦j¦}« area of risk management as advisors to the Board who are part j¦Îe| uj¦«j¦ÛØÛk«dØz«j¦Ûf}yØ|||Î¡ of this Committee. The dates of the meetings and attendance dqØ uj«¦¡ of the members of Committee are as under: No. of Meetings held: 6 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 09.04.2018, 26.06.2018, 11.09.2018, 21.01.2019, 01.03.2019, 20.03.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§{j§} Name of t he Director / Member d|Period dqÙ uj¬§ f~zÙ Meetings held Meetings during their Tenure Attended v¢ÎkdcÖ d{ Dr. Hasmukh Adhia (Chairman) 01.03.2019 to 31.03.2019 2 1 Û«j¦t| Shri Ravi Venkatesan* 01.04.2018 to 13.08.2018 2 2 Û}Ûiqj¦ Shri P. S. Jayakumar 01.04.2018 to 31.03.2019 6 4 Û j¦j¦ÎØ Shri Mayank K. Mehta* 01.04.2018 to 30.09.2018 3 3 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 2 2 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 6 6 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 3 3 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 3 1 Ûfi|| Ms. Usha A. Narayanan* 01.04.2018 to 11.12.2018 3 3 ÛØÛàzj¦ Smt. Soundara Kumar 01.04.2018 to 31.03.2019 6 3 ÛÛ||Û{ Shri Srinivasan Sridhar 20.03.2019 to 31.03.2019 1 1 ÛØÛqØ«j¦t|Îj¦ Smt. Sujatha Venkatramanan - Advisor 01.04.2018 to 31.03.2019 6 4 ÛÎ®Ûãt¤to¥Îj¦ Shri Himadri Bhattacharya – Advisor 01.04.2018 to 31.03.2019 6 6 ÛÛ{Û||Îj¦ Shri Sridhar Srinivasan – Advisor* 01.04.2018 to 15.11.2018 3 3 ¥j¦z|z|ÎÛ Î *ceased to be member during the year. ¥j¦z|Ø|d| Ø«j¦yy||kØj¦d|z| During the year, the Committee inter-alia approved/reviewed Ûj¦Û¡ following: x Target Market Approach for Agriculture customers x j¦l°Îj¦«j¦i q}·Ø x Target Market Approach for MSME segment x iiie¥l¥j¦i q}·Ø x Home Loan Origination Scorecard/model and cut off x kzhj¦d Øl¥Ødh}° ãd j¦}¢v||Ø strategy under retail advances. d j¦j¦¥|ÛØ x Global Credit Exposure Management Policy x Çj¦hi§}^}° {||ÛØ x Global Prudential caps on various Industries and Sectors x Ï¥j¦iã||fµl«d«}j¦ØÇj¦Û for the financial year 2018-19 |{¥ x Business Continuity Planning Policy, Data Privacy & x j¦ | ØØq||ÛØvtl}|ÛØ |ÛØÇj¦ Protection Policy, Global Operational Risk Management Policy, Bank’s Internet Payment Gateway Policy and other }o|Øj¦qk}° {||ÛØ àj¦j¦e t|t}«tlt|ÛØdd| Risk related policies qk {Û|ÛØ 5. Stakeholders Relationship Committee ÏÙ| j§¡¡|~ j§Ù The Committee monitors the issuance of share certificates Øed¢|t lj¦ØÛÎj¦d Øf}ãq|j¦| within a period of -15- days of the date of lodgment for transfer, |Ûj¦|dy ld t|j¦} j¦|j¦Û}°ØØØÛk sub-division, consolidation, renewal, exchange or endorsement of calls / allotment money. The Committee further monitors the z|«j¦ãÛØãÛ}°}qÛj¦ziqi Ø|j¦« redressal of investors’ complaints in a time bound manner. j¦Ûj¦Ø«j¦|j¦i ·}|l|ÛãÛj¦ØÛÎ The Committee consists of Executive Director (s) and two eØ«j¦¥}j¦|zj¦ l i zlj¦¥}j¦|zj¦ non-Executive Directors as its members with a Non-Executive zj¦}«ÎàØyij¦lj¦¥}j¦|zj¦ej¦d{ Director as its Chairman. The dates of the meetings and Îàe| uj¦«j¦ÛØÛk«dØz«j¦Ûf}yØ|||Î¡ attendance of the Directors are as under:

71 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 dqØ uj«¦¡ No. of Meetings held: 4 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 06.06.2018, 27.09.2018, 16.01.2019, 22.03.2019 f}j§j§¦j§¬ uj§¬¬ dqÙ uj¬§ f}j§Ü }{j§j§} Name of the Director d|Period Meetings held f~zÙ during their Tenure Meetings Attended ÛãØj¦vÛv l d{ Shri Bharatkumar D. Dangar (Chairman) 01.04.2018 to 31.03.2019 4 4 Û j¦j¦ÎØ Shri Mayank K. Mehta* 01.04.2018 to 30.09.2018 2 1 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 1 1 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 4 3 }° qj¦Û¥ Prof. Biju Varkkey 01.04.2018 to 31.03.2019 4 3 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 3 3 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 2 2 ¥j¦z|z|ÎÛ Î *ceased to be member during the year ¥j¦z|}°}Øi |j¦Ûle¥||kØj¦Ø«d|{«j¦ Following requests/complaints received and resolved during Ø¸|tj¦l¡ the year were noted by the Committee: {Ùj§¡Ù ¦j§{ }~±~Ù ¦j§{ }}Ù Ù {Ùj§¡Ù Pending as on 01.04.2018 Received during the year Resolved during the year Pending as on 31.03.2019 8 7266 7274 0 Û}Ûj¦dl°j¦}|Ûoj¦ Û oÛ|j¦d}°j¦tÛj¦ Shri P K Agarwal, Company Secretary is the designated dj¦Ød« ||j¦|j¦ØÎØ àj¦j¦CCd|}| “Compliance Officer” of the Bank under Regulation 6 of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, d{j¦Û j¦}«|Øj¦lÎ 2015. }¡j§}Ù 6. Nomination Committee ÎØ àj¦j¦Ûj ¦}|Û f}¨¦«j¦dq¥|i d Ø d{| The Committee ascertains ‘Fit and Proper’ status of persons j¦Û{ de¥ j¦}°{|«j¦d Øl¥ØtÐÛj¦Ø àj¦«j¦|zj¦ v to be elected as shareholder director on the Board as per the «|¥o|ÎØ§Ø«j¦iØyeÛj¦d Øl¥Øqz|zj¦« provisions of Section 9(3) (i) of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and also on annual ÎØ¥j¦d{}CCÜ¦tiv}°¢} tt|ÅØj¦ØÛÎe| basis for these directors. The dates of the meetings and uj¦«j¦ÛØÛk«d|zj¦«j¦Ûf}yØ|||Î¡ attendance of the Directors are as under: dqØ uj«¦¡ No. of Meetings held: 3 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 25.05.2018, 27.11.2018, 10.01.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§{j§ Name of the Director d|Period dqÙ uj¬§ f~zÙ ›¸¸Ÿ¸ Meetings held during Meetings their Tenure Attended v¢ÎkdcÖ d{ Dr. Hasmukh Adhia (Chairman) 01.03.2019 to 31.03.2019 00 Û«j¦t| d{ Shri Ravi Venkatesan* (Chairman) 01.04.2018 to 13.08.2018 11 }° qj¦Û¥ Prof. Biju Varkkey 01.04.2018 to 12.05.2018 00 }° qj¦Û¥ Prof. Biju Varkkey 14.05.2018 to 31.03.2019 33 Ûz Û} v Shri Debasish Panda 14.05.2018 to 31.03.2019 33 Ûl}j¦dl° Shri Gopal Krishan Agarwal 01.11.2018 to 31.03.2019 22 ¥j¦z|z|ÎÛ Î *ceased to be member during the year. l±Ïj§Ù¡ 7. Customer Service Committee Øj¦j¦Õ«l°Îj¦d«j¦ÛlÏj¦ ÎØ ||j¦ir The functions of the Committee include creating a platform for making suggestions for enhancing the quality of customer z|i ||Ûf}«j¦i}tÜ¦¢¥j¦q|j¦|ØyãÛ l¥ services and improving the level of satisfaction for all categories j¦l°Îj¦«j¦il°Îj¦j¦ÛlÏ«·j¦|d ØtØ of clientele at all times. The Committee has also the «{j¦|ÎØ||j¦Õj¦ãÛ|}z|j¦ØÛÎ¡ following tasks:

72 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

L ¥q|j¦d«j¦Û}°¨¦i j¦¥|}z|k}Û |{Û I. To oversee the functioning of and compliance with the recommendations of the Standing Committee on yÛØj¦j¦Õj¦Ûzkkj¦|Øyl°Îj¦d«j¦ÛyÛ Procedure and Performance Audit on Public Services. Øj¦ÛÜ¦«j¦d|}|j¦|ÅØj¦| II. Review the status of the Awards remaining unimplemented LL d{|¥j¦ÛØÛkØÛ|ÎÛ|d{j¦ ÛØq|}ãÛl| for more than 3 months from the date of Awards and also deficiencies in providing banking services as observed by j¦ili j¦d{|¥«Øy àj ¦lj¦}¸ àj ¦li the Banking Ombudsman. }°z|j¦|«}e¥le¥j¦«j¦ÛyØj¦ÛÛj¦| III. Review the status of the number of deceased claims LLL Øqj¦Ø¥d«¢j¦j¦iz«Ødã«kÛle¥Ød« remaining pending / outstanding for settlement beyond 15 days pertaining to deceased depositors / locker hirers j¦qj¦Ø¥d« |{Ø|}t|ÎØz|«j¦Ûd{d{j¦ / depositor of safe custody articles. j¦z«j¦Û kj¦ÛyØ |{ÛÛj¦| The dates of the meetings and attendance of the Directors are e| uj¦«j¦ÛØÛk«d|zj¦«j¦Ûf}yØ|||Î¡ as under: dqØ uj«¦¡ No. of Meetings held: 4 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 06.06.2018, 11.09.2018, 10.12.2018, 12.03.2019

f}j§j§¦j§¬dqÙ uj§¬¬f}j§Ü }{j§{j§} Name of the Director d|Period uj¬§Meetings held f~zÙ Meetings during their Tenure Attended Û}Ûiqj¦ d{ Shri P. S. Jayakumar (Chairman) 01.04.2018 to 31.03.2019 44 Û j¦j¦ÎØ Shri Mayank K. Mehta* 01.04.2018 to 30.09.2018 22 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 11 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 42 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 22 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 22 }° qj¦Û¥ Prof. Biju Varkkey* 01.04.2018 to 20.03.2019 44 ÛÛ||Û{ Shri Srinvasan Sridhar 20.03.2019 to 31.03.2019 00 ¥j¦z|z|ÎÛ Î *ceased to be member during the year. v×Ü j§Ü|k|v×Ü¡¡|ÜÙ 8. Committee on High Value Frauds Ø àj¦«j¦vÖdfd{j¦j¦Ûj¦{k{vÖÛ |{Û The Committee monitors high value frauds of `1.00 crore and «j¦Û|l|Ûj¦ØÎØj¦¡ above in the Bank so as to: i {k{vÖÛj¦d}{j¦j¦Ø«}°ÛlØk«j¦}Øl|d a) Identify the systemic lacunae if any that facilitated perpetration of the fraud and put in place remedial measures f|}| j¦|j¦if}j¦iqj«¦ to plug the same. Û {k{vÖÛj¦}Øl|« j¦j¦«j¦Û}Îo|Øy àj¦Øy b) Identify the reasons for delay in detection, if any, and ãØÛ^¥ àj¦j¦foo}° |{j¦«j¦fj¦Û}tÕl reporting to the Top Management and RBI. Û Û Ûde¥}q o}vÖØj¦Û}°lØØyÛj¦ÛyØj¦Û c) Monitor progress of CBI / Police Investigation, and recovery |l|Û position. vÛ Î|ÅØj¦|j¦{k{vÖÛj¦ãÛ««ãÛØ«}tÜ¦ d) Ensure that staff accountability is examined at all levels in fÏzØj¦}ÛÎdqÎ tÜ¦}j¦¥e¥d}ØÎ all the cases of frauds and staff side action, if required, is completed quickly without loss of time. d j¦Ûqi e) Review the efficacy of the remedial action taken to prevent e¥ {k{vÖÛj¦Û}|Øj¦|j¦ij¦Ûle¥{Øj¦ recurrence of frauds, such as strengthening of internal j¦¥e¥j¦Û}°ãØ}zj¦Øj¦ÛÛyd Øj¦| j¦ controls. §Øj¦| The dates of the meetings and attendance of the Directors are e| uj¦«j¦ÛØÛk«d|zj¦«j¦Ûf}yØ|||Î¡ as under: dqØ uj«¦¡ No. of Meetings held: 4 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 24.05.2018, 11.09.2018, 16.01.2019, 13.03.2019

73 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§j§} Name of the Director d|Period dqÙ uj¬§ f~zÙ Meetings held Meetings during their Tenure Attended v¢ÎkdcÖ d{ Dr. Hasmukh Adhia (Chairman) 01.03.2019 to 31.03.2019 1 1 Û«j¦t| Shri Ravi Venkatesan* 01.04.2018 to 13.08.2018 1 1 Û}Ûiqj¦ Shri P.S. Jayakumar 01.04.2018 to 31.03.2019 4 4 Ûz Û} v Shri Debasish Panda 05.04.2018 to 31.03.2019 4 1 Ûl}j¦dl° Shri Gopal Krishan Agarwal 10.05.2018 to 31.03.2019 4 4 Ûfi|| Ms. Usha A. Narayanan* 01.04.2018 to 11.12.2018 2 2 ÛØÛàzj¦ Smt. Soundara Kumar 01.04.2018 to 31.03.2019 4 3 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 1 0 Û j¦j¦ÎØ Shri Mayank K Mehta* 01.04.2018 to 30.09.2018 2 2 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 4 3 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 2 2 Û¨¦zØ ÎkÛoÛ Shri Vikr amaditya Singh Khichi 01.10.2018 to 31.03.2019 2 2 ÛÛ||Û{ Shri Srinivasan Sridhar 20.03.2019 to 31.03.2019 0 0 Ûj¦i||j¦ÛÛd Shri K N Nayak - CVO 01.04.2018 to 31.03.2019 4 3 *¥j¦z|z|ÎÛ Î *ceased to be member during the year ÏÛ¥j¦z|Ø|d| Ø«j¦yy||kØ During FY 2018-19, the Committee inter-alia approved/reviewed j¦ÛÛd|z|j¦Î¡ the following: x Implementation of Enterprise Wide Fraud Risk Management x fµ{k{vÖÛqk}° {||ÛØj¦j¦¥|| Policy x vÖÛj¦{k{vÖÛ««kj¦«j¦ x Root Cause Analysis of High Value Fraud Cases x ÎØ mh}id}Û x An SOP on Consortium Lending. x {k{vÖÛ}Øo|fj¦Ûo|z|«j¦j¦j¦|j¦ x An SOP on Quick Response Team (QRT) at Regional Office iÛj¦¥Ø}ØØd|¨¦tÛdd oj¦¥ Level and Special Investigation Team (SIT) at Zonal Office Ø}d|tÛj¦iid}Û Level to reduce TAT for detection and reporting of frauds. x i|}Ûidfooj¦hkØ««Ü¦¢«j¦k}Û} x An SOP on Forensic Audit in NPA and high value advances id}Û accounts. áj§j§Üo}~± ¶lj§Üj§¦}ÜÙÙ 9. IT Strategy Committee of the Bank o|e§tÐ¢|j¦ àj ¦lØj¦|Ûj¦Ûqk}° {|i In accordance with the recommendations of Reserve Bank {k{vÖ«}ãØÛ^¥ àj¦j¦j¦¥zj¦ÛÜ¦Û«j¦d| of India Working Group on Information Security, Electronic Banking, Technology Risk Management & Cyber Frauds, àj¦|d}||zj¦ vj¦Ûz| j¦Ü¦Ûj¦Û uj¦«de¥tÛ the Bank at its Board meeting held on 27th February, 2012, j¦¥|ÛØØj¦lu|j¦ àj¦|ØÛ|de¥tÛ«j¦Îj¦ constituted an IT Strategy Committee. Bank has inducted j¦}«|§Øj¦ÎqeØj¦zÎàe| uj¦«j¦ÛØÛk« three IT specialists as Advisors who are also members of the dz«j¦Ûf}yØ|||Î¡ Committee. The dates of the meetings and attendance of the members are as under: dqØ uj«¦¡ No. of Meetings held: 4 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 06.06.2018, 21.09.2018, 29.11.2018, 13.03.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü dqÙ uj¬§ f~zÙ }{j§{j§} Name of the Director / Member d|Period Meetings held Meetings during their Attended Tenure Û«j¦t| Shri Ravi Venkatesan* 01.04.2018 to 13.08.2018 11 Û}Ûiqj¦ Shri P.S. Jayakumar 01.04.2018 to 31.03.2019 44 ÛØÛ}}|l}Ø Smt Papia Sengupta* 01.04.2018 to 12.10.2018 22 Û Øq| Shri Shanti Lal Jain 12.10.2018 to 31.03.2019 22

74 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

Ûl}j¦dl° Shri Gopal Krishan Agarwal 01.04.2018 to 31.03.2019 44 v¢zÛ}j¦ Û}uj¦d Ø Dr. Deepak B Pathak – Invitee 01.04.2018 to 31.03.2019 44 Û j¦j¦ÎØd Ø Shri Mayank K Mehta – Invitee* 01.04.2018 to 30.09.2018 21 Ûdj¦j¦ll¥d Ø Shri Ashok Kumar Garg – Invitee* 01.04.2018 to 30.06.2018 11 ÛØÛ}}|l}Ød Ø Smt. Papia Sengupta – Invitee 12.10.2018 to 31.03.2019 21 Û Øq|d Ø Shri Shanti Lal Jain – Invitee * 20.09.2018 to 11.10.2018 11 Shri Vikramaditya Singh Khichi – 01.10.2018 to 31.03.2019 21 Û¨¦zØ ÎkÛoÛd Ø Invitee Ûij¦|Îj¦ Shri S. Ramakrishnan – Advisor* 01.04.2018 to 10.08.2018 10 Ûj¦Îj¦ Shri. Kalyana Rao – Advisor 01.04.2018 to 31.03.2019 44 v¢zÛ}j¦ Û}uj¦Îj¦ Dr. Deepak B. Phatak - Advisor 01.04.2018 to 31.03.2019 44 ÛãØj¦vÛv l Shri Bharatkumar D Dangar 20.03.2019 to 31.03.2019 00 ¥j¦z|z|ÎÛ Î *ceased to be member during the year àj¦l°Îj¦«j¦Û cÖØÛd}d«j¦}j¦|j¦i| Ød}|fØ}z}°Û Bank is constantly evolving its products, systems and structure o|«{j¦ÎÎ àj ¦ld«j¦vqtÎ|}l°Îj¦«j¦Ûd}i to meet the growing aspirations of the customers. Digitization of banking services has raised the expectations of the customers cÖØÛqÎÛÎàqj¦o|}°µlj¦Û o|j¦| Øf||j¦| thus driving continuous upgradation of the IT infrastructure. }vÖØÎde¥tÛfØj¦tØj¦|® de¥tÛÛde¥ d|Øj¦fØj¦tØ IT Center of Excellence (IT COE) and Analytical Centre of j¦|® iÛde¥ |iliÎàq«fooØØj¦vqt|Øj¦ Excellence (ACoE) are created to create a next-level of digital dq|j¦iqØÎ« àj¦|Îz z«ij¦|vtj¦|®ãÛy}Øj¦ & analytics organization. Bank has also setup new data center in Hyderabad. Bank is in process of amalgamation of various Î àj¦}¥ØÛ¥z| àj¦d}¥ØÛ¥q àj¦j¦ã||Øj¦|Ûj¦Û}tÜ¦¢¥j¦ technological platform of the eDena Bank and eVijaya Bank d}|ÛØj¦|Ûj¦Û o|j¦y|j¦Û}°¨¦«qtÎ with own technological infrastructure. }¡|}~ }{j§¡vj§Üj§¦}ÜÙÏj§ Ù 10. Strategic Advisory Committee of the Board on HR ÎØ| {| {Øã||«´«}oo¥j¦ØÛÎ àj¦| The Committee discusses various matters/issues related to j¦«zj¦ v¥j¦Îj¦j¦}«|§Øj¦Îq Human Resources. Bank has inducted two specialists in the eØj¦ãÛzÎàe| uj¦«j¦ÛØÛk«d|zj¦«j¦Ûf}yØ area of HR as Advisors to the Board who are also members of the Committee. The dates of the meetings and attendance of |||Î¡ the Directors are as under: dqØ uj«¦¡ No. of Meetings held: 7 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 09.04.2018, 12.07.2018, 09.08.2018, 01.12.2018, 12.12.2018,22.03.2019, 25.03.2019. f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§j§} Name of the Director/ Member d|Period dqÙ uj¬§ f~zÙ Meetings held Meetings during their Tenure Attended }° qj¦Û¥ d{ Prof. Biju Varkkey (Chairman) 01.04.2018 to 31.03.2019 77 Û}Ûiqj¦ Shri P. S. Jayakumar 01.04.2018 to 31.03.2019 75 Û Øq|j¦| Shri Shanti Lal Jain – ED (HR) 12.10.2018 to 31.03.2019 43 Ûj¦ j¦Îj¦ Shri Krish Shankar – Advisor 01.04.2018 to 31.03.2019 72 ÛØÛ}}|l}Øj¦| Smt. Papia Sengupta – ED (HR) 01.04.2018 to 11.10.2018 33 Û¨¦zØ ÎkÛoÛd Ø Shri Vikramaditya Singh Khichi – Invitee 01.10.2018 to 31.03.2019 43 ÛÛ||Û{ Shri Srinivasan Sridhar 26.03.2019 to 31.03.2019 00 Û«j¦t|d Ø Shri Ravi Venkatesan – Invitee* 01.04.2018 to 13.08.2018 32 Û j¦j¦ÎØd Ø Shri Mayank K. Mehta – Invitee* 01.04.2018 to 30.09.2018 33 Ûdj¦j¦ll¥d Ø Shri Ashok Kumar Garg – Invitee* 01.04.2018 to 30.06.2018 11 ÛØÛ}}|l}Ød Ø Smt. Papia Sengupta – Invitee* 12.10.2018 to 31.03.2019 42 Û Øq|d Ø Shri Shanti Lal Jain – Invitee* 20.09.2018 to 11.10.2018 00 Û¨¦zØ ÎkÛoÛd Ø Shri Vikramaditya Singh Khichi – Invitee 01.10.2018 to 31.03.2019 42 Û qÛoÎj¦ Shri Sanjeev Sachar - Advisor* 01.04.2018 to 30.06.2018 10 ¥j¦z|z|ÎÛ Î *ceased to be director during the year 75 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

ÏÛ¥j¦z|d| Ø«j¦yyØ|||j¦Û During FY 2018-19, the Committee inter-alia approved/reviewed Ûj¦Ûd|z|j¦Î¡ the following: x Review of identified critical positions under Succession x f{j¦q|j¦d Øl¥Ø|{¥Øj¦ilidØÎØ}¥}z«j¦Û Planning Û x Changes in promotion policy x }z||Ø|ÛØ«}Ø¥| x Implementation of Non-monetary incentives under BRITE x Ûdde¥tÛe¥j¦¥¨¦j¦d Øl¥ØlÏÛ}°ØÎ|j¦¥¨¦lj¦| Program x q àj¦dz| àj¦j¦ àj¦d¢Ü×¦ vÖzj¦y|j¦Û x Review and harmonization of Staff Benefits & Staff Loans q|j¦Ûd{o|j¦ ztÜ¦j¦tÜ¦h«« q after notification of scheme of amalgamation of Vijaya Bank dÛ & Dena Bank with Bank of Baroda }{j§¬j§ÜÙ 11. Committee of Directors ÎØÏ j¦d|}Øj¥¦ØlØj¥¦Ø |{Ûd||j¦ This Committee deals with review of vigilance/non-vigilance disciplinary cases and departmental enquiries in line with MOF «dãlÛq o«j¦ÛÛj¦j¦¥j¦ØÛÎe| uj¦«j¦Û guidelines. The dates of the meetings and attendance of the ØÛk«dz«j¦Ûf}yØ|||Î¡ members are as under: dqØ uj«¦¡ No. of Meetings held: 4 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 07.06.2018, 10.09.2018, 29.11.2018, 20.02.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§j§} Name of the Director d|Period dqÙ uj¬§ f~zÙ Meetings held Meetings during their Tenure Attended Û}Ûiqj¦ d{ Shri P S Jayakumar (Chairman) 01.04.2018 to 31.03.2019 4 4 Ûdqj¦ Shri Ajay Kumar 01.04.2018 to 31.03.2019 4 3 Ûz Û} v Shri Debasish Panda 05.04.2018 to 31.03.2019 4 2 Ûj¦ q| Shri Lok Ranjan* 01.04.2018 to 04.04.2018 0 0 ¥j¦z|z|ÎÛ Î *ceased to be director during the year Ü}l }Üj§iÙ 12. Committee for Monitoring of Recovery ÎØ àj¦«i|}Ûi}° {|j¦ÛÛj¦ØÛÎhi dl°«j¦ÛÛ The Committee reviews NPA management in the Bank; provides oversight on collection system and recovery of loans }°Ûi Ûj¦¥|}z|j¦Û|l|Ûj¦ØÛÎd vÖÛj¦i|}ÛikØ« & advances and monitors recovery performance in large value j¦Û|l|Ûj¦ØÛÎe| uj¦«j¦ÛØÛk«dz«j¦Ûf}yØ|||Î¡ NPA accounts. The dates of the meetings and attendance of dqØ uj«¦¡ the members are as under: uj¦«j¦ÛØÛk«¡ No. of Meetings held: 7 Dates of Meetings: 10.05.2018, 04.07.2018, 13.08.2018, 09.10.2018, 31.01.2019, 20.02.2019, 13.03.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§j§} Name of the Director / Member d|Period dqÙ uj¬§ f~zÙ Meetings held Meetings during their Tenure Attended Û}Ûiqj¦ d{ Shri P. S. Jayakumar (Chairman) 01.04.2018 to 31.03.2019 76 Û j¦j¦ÎØ Shri Mayank K. Mehta* 01.04.2018 to 30.09.2018 33 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 10 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 76 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 44 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 42 ÛãØj¦vÛv l Shri Bharatkumar D. Dangar 01.04.2018 to 31.03.2019 77 ÛØÛàzj¦ Smt. Soundara Kumar 01.04.2018 to 31.03.2019 74 Ûz Û} v Shri Debasish Panda 05.04.2018 to 31.03.2019 70

76 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

Ûi|j¦ m}° h|l|Û Shri N K Singhal – GM (Credit 01.04.2018 to 31.10.2018 4 0 Monitoring) Ûq|Û¥Û|lÛØ Shri Rajneesh Sharma / Shri Nagesh 01.04.2018 to 31.03.2019 7 3 }° q¥j¦}¥t àj ¦l Srivastava – GM (Large Corporate Banking) Ûj¦qÛl}° h Shri K G Goyal – GM (Credit Monitoring) 01.11.2018 to 31.03.2019 3 3 |l|Û Ûj¦ q| Shri Lok Ranjan* 01.04.2018 to 04.04.2018 0 0 ¥j¦z|z|ÎÛ Î *ceased to be member during the year. Ø|i|}Ûii t¤tj¦ØkØ««Ûj¦Ûl°yØi|}ÛikØ« The Committee reviewed overall position of recovery in NPA and written off accounts, status of recovery actions in NPA «Ûj¦¥e¥j¦ÛyØezØ|oj¦j¦Ø¥de¥ ÛÛj¦d Øl¥Ø}°lØ accounts, wilful defaulters, progress under IBC and overall i Û«·ÎØ àj¦¸d}|e¥le¥ã||j¦¥|ÛØ«}Î«j¦ implementation/progress of various strategies/initiatives taken l°j¦Õ|}°lØj¦ÛÛj¦Û by the Bank for maximization of recovery. ¡vd¡Ù Ù 13. Shares/Bonds Transfer Committee: Ø« v«j¦d ØÎØ ØØyd|«qv}Ûj¦t The Committee considers and approves transfer / transmission t¥Ü¦j¦tqÛj¦||Ît|tt z|dz}o of Shares / Bonds and other issues like issue of duplicate share certificate, deletion of name, change of status, etc. j¦ØÛÎi d|z|j¦ØÛÎ No. of Meetings held : 52 dqØ uj«¦¡ Dates of Meetings: 09-04-2018 18-04-2018 25-04-2018 uj¦«j¦ÛØÛk« 27-04-2018 05-05-2018 10-05-2018 18-05-2018 28-05-2018 04-06-2018 12-06-2018 20-06-2018 25-06-2018 28-06-2018 10-07-2018 17-07-2018 23-07-2018 31-07-2018 06-08-2018 10-08-2018 21-08-2018 28-08-2018 01-09-2018 06-09-2018 15-09-2018 21-09-2018 01-10-2018 08-10-2018 15-10-2018 22-10-2018 29-10-2018 05-11-2018 15-11-2018 19-11-2018 26-11-2018 01-12-2018 11-12-2018 18-12-2018 27-12-2018 31-12-2018 08-01-2019 11-01-2019 18-01-2019 28-01-2019 05-02-2019 07-02-2019 15-02-2019 25-02-2019 01-03-2019 08-03-2019 18-03-2019 28-03-2019 30-03-2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§j§} Name of the Director / Member d|Period dqÙ uj¬§ f~zÙ Meetings held during Meetings their Tenure Attended Û}Ûiqj¦ Shri P. S. Jayakumar 01.04.2018 to 31.03.2019 52 28 Û j¦j¦ÎØ Shri Mayank K. Mehta* 01.04.2018 to 30.09.2018 25 17 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 13 9 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 52 42 Û Øq| Shri Shantil Lal Jain 20.09.2018 to 31.03.2019 28 25 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 27 22 Ûdj¦y Shri R K Mathur 15.01.2018 to 31.03.2019 52 43 Ûj¦j¦Îq| Shri Kamal K Mahajan* 01.04.2018 to 31.01.2019 43 18 Ûi|l} Shri N Venugopal 01.04.2018 to 31.03.2019 52 43 ¥j¦z|z|ÎÛ Î *ceased to be member during the year.

77 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

~ j§Ù 14. Remuneration Committee Ø àj¦j¦}¥j¦j¦|zj¦«j¦j¦¥|}z|j¦ j¦|j¦ØÛÎ The Committee evaluates and decides upon the performance of Whole Time Directors of the Bank and has following Members d|¥ØÛÎØyj¦Ø«||zÎà¡ as on 31.03.2019: ¨¦ |zj¦zj¦| zd{ Sr. No. Name of Director/Member Member/Chairman v¢ÎkdcÖ d{ 1 Dr. Hasmukh Adhia Chairman Ûdqj¦ z 2 Shri Ajay Kumar Member ÏÛ¥j¦z|}j¦Øj¦Ûj¦e¥ uj¦dqØ During the Financial Year 2018-19, no meeting of the |ÎÛ j¦Ûle¥ Remuneration Committee was held. l±ÜÐÜ}d j§£~¦ tqj§{Ù~ v¦j§Ü 15. Steering Committee of the Board on Rural – FI & CSR ¡o}Ù¢ The Committee oversees all activities under the Bank’s Ø¸ àj¦d¢Ü×¦ vÖzj¦¢}¥tqj¦fÏzØ|ÛØj¦d Øl¥Ø Corporate Social Responsibility Policy and institutes a ãÛlØ{«j¦}¥j¦qØÎØy àj¦¸j¦q| transparent monitoring mechanism for implementation of CSR Ûid}q|j¦¥¨¦lØ{«j¦j¦¥||Øyfj¦ projects or programs or activities undertaken by the Bank and social impact of the same. The dates of the meetings and qj¦}°ãÎØ}zÛ¥|l|ÛØ y}Øj¦qØÎe| uj¦« attendance of the members are as under: j¦ÛØÛk«i z«j¦Ûf}yØ|||Î¡ dqØ uj«¦¡ No. of Meetings held: 4 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 06.06.2018, 27.09.2018, 16.01.2019, 13.03.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§j§} Name of the Director d|Period dqÙ uj¬§ f~zÙ Meetings held Meetings during their Tenure Attended v¢ÎkdcÖ d{ Dr. Hasmukh Adhia (Chairman) 11.03.2019 to 31.03.2019 1 1 Û}Ûiqj¦ Shri P S Jayakumar 01.04.2018 to 31.03.2019 4 3 Û j¦j¦ÎØ Shri Mayank K. Mehta* 01.04.2018 to 30.09.2018 2 2 Ûdj¦j¦ll¥ Shri Ashok Kumar Garg* 01.04.2018 to 30.06.2018 1 1 ÛØÛ}}|l}Ø Smt. Papia Sengupta 01.04.2018 to 31.03.2019 4 3 Û Øq| Shri Shanti Lal Jain 20.09.2018 to 31.03.2019 3 3 Û¨¦zØ ÎkÛoÛ Shri Vikramaditya Singh Khichi 01.10.2018 to 31.03.2019 2 2 Ûl}j¦dl° Shri Gopal Krishan Agarwal 01.04.2018 to 31.03.2019 4 3 ÛãØj¦vÛv l Shri Bharatkumar D Dangar 01.04.2018 to 31.03.2019 4 4 ¥j¦z|z|ÎÛ Î *ceased to be member during the year Ï¥j¦z|Ø|d| Ø«j¦yy||kØ During FY 2018-19, the Committee inter-alia approved/ j¦ÛÛj¦Ûd|zØj¦ reviewed the following: x Setting up of Centers for Financial Literacy (CFLs) in 5 x Ü¦^ zqfÏ}°zj¦ ¢j¦«ÏÛØÎØj«¦®«j¦Û blocks of Faizabad District, UP. y}|ã||dtÛdj¦j¦ {Ûã||¥j¦i x Approved additional budget of Rs 219.95 lac to BSVS trust ÛiÛi|Û{j¦kj¦dØ§Ø qtd|zØj¦ for construction of buildings of various RSETIs and skill x j¦ÏÛ|ãlj¦j¦¥|}z|j¦ÛÛj¦Ûle¥d development. Î àj¦|j¦d}°yj¦Ø}°}Ø«ãÛd|¥} x Reviewed the performance of Agriculture, FI department and our Bank has crossed all mandatory targets in Agriculture j¦ÎàÎ¥z¥·«Î àj¦ãÛ¥q|j¦j¦ and Priority sector. Our Bank’s YOY growth is the highest àj¦««}Îy|}ÎdtÛvÛ·j¦d Øl¥Øj¦Ï« among all PSBs and YTD growth under Agriculture finance zy|}Î j¦| àj¦j¦ z m Û«ÎlØz is 2nd highest (next to Canara bank) amongst all the public ¥}°yy|}Î sector Banks. Our position in micro-insurance remained number one for the 2nd consecutive year.

oÜ¸}ÏiÜd}¡l¬j§Ül}ÖÙ 16. Governance Committee for Unlisted Subsidiaries oÛ ·|ÎiÛd| l«j¦l|Õ}|l|Ûk|j¦i Ûj¦ This Committee is constituted as per SEBI guidelines to monitor z|z¥«j¦d|}ÎØluØj¦Ûle¥Îej¦Û uj¦«j¦ÛØÛk« the governance of unlisted subsidiaries. The dates of the i z«j¦Ûf}yØ|||Î¡ meetings and attendance of the members are as under:

78 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19 dqØ uj«¦¡ No. of Meetings held: 1 uj¦«j¦ÛØÛk«¡ Dates of Meetings: 12.03.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§j§} Name of the Director d|Period dqÙ uj¬§ f~zÙ Meetings held Meetings during their Tenure Attended Û}Ûiqj¦ d{ Shri P.S. Jayakumar (Chairman) 29.11.2018 to 31.03.2019 1 1 ÛØÛ}}|l}Ø Smt. Papia Sengupta 29.11.2018 to 31.03.2019 1 1 }° q§j¦Û¥ Prof. Biju Varkkey 29.11.2018 to 31.03.2019 1 1 ÛØÛàzj¦ Smt. Soundara Kumar 29.11.2018 to 31.03.2019 1 1 e {Ù}oj§j§Ù¦d¬~ ÜÙ 17. Review Committee on Wilful Defaulters ÎØãØÛ^¥ àj¦j¦z| j¦q|Ûj¦z|z¥« This Committee is constituted as per modification in the j¦d|}ezØ|oj¦j¦Ø¥d«j¦Û}Îo| {Û}°Û« {|j¦ Mechanism for identification of Wilful Defaulters as per Reserve d|luØj¦Ûle¥Î Bank of India guidelines dated 7th January, 2015. }|| uj¦«j¦Û k¡ No. of Meetings held : 12 uj¦«j¦ÛØÛk¡ Dates of Meetings: 06.06.2018, 29.06.2018, 14.08.2018, 04.09.2018, 12.10.2018, 23.01.2019, 29.01.2019, 31.01.2019, 20.02.2019, 12.03.2019, 20.03.2019, 22.03.2019 f}j§j§¦j§¬ uj§¬¬f}j§Ü }{j§j§} Name of the Director d|Period dqÙ uj¬§ f~zÙ Meetings held Meetings during their Tenure Attended Û}Ûiqj¦ Shri P S Jayakumar 01.04.2018 to 31.03.2019 12 12 }° Ûq§j¦Û¥ Prof. Biju Varkkey 01.04.2018 to 31.03.2019 12 12 ÛãØj¦vÛv l Shri Bharatkumar D Dangar 01.04.2018 to 31.03.2019 12 12 }{j§¬j§~ j§ REMUNERATION OF DIRECTORS lj¦¥}j¦|zj¦«j¦ÛØyuÎ|}Î|ÎØ The remuneration including travelling and halting expenses to }j¦j¦ãlØ|tÐÛj¦Ø àj¦ }° |{|i {}°{| q| non-Executive Directors are paid as stipulated by the Central y {Ø j¦Û{«fkØØÕj¦d|} Government in consultation with Reserve Bank of India from time to time in terms of Clause 17 of the Nationalized Banks }j¦|®j¦¸ãØÛ^¥ àj¦j¦}¥y|{¥Ø|j¦« (Management and Miscellaneous Provisions) Scheme, 1970 j¦d|}j¦qØÎ (as amended). }° {|zj¦i kj¦¥}j¦d{j¦ÛØyj¦¥}j¦|zj¦« The Managing Director & CEO and Executive Directors (whole }¥j¦j¦|zj¦ j¦}j¦j¦ãlØ|ãØj¦¸|{¥Ø time directors) are paid remuneration by way of salary as per |«j¦d|}Ø|j¦}«j¦le àj¦«j¦e¥t¢j¦ rules framed by the Government of India. At present the Bank d¢}|q||ÎÛ Î}° {|zj¦i kj¦¥}j¦d{j¦ÛØy has no Stock Option Scheme. The details of remuneration paid j¦¥}j¦|zj¦«j¦ãlØ|j¦ili}j¦j¦ |||Î¡ to the Managing Director & CEO and Executive Director/s are ÏÛ¥j¦z|ãlØ|j¦l}j¦ detailed below: ÐÜ¦j§{ }älÙ}j§l~ j§ Remuneration paid during the Financial Year 2018-19: | }z| Ï¥ Name Designation Remuneration in «}j¦ ` FY 2018-19 (`) Û}Ûiqj¦ }° |{|zj¦i k Shri P S Jayakumar MD & CEO 33,45,175/- j¦¥}j¦d{j¦Û Shri Mayank K. Mehta* Executive Director 55,24,659/- Shri Ashok Kumar Executive Director 46,38,773/- Û j¦j¦ÎØ j¦¥}j¦|zj¦ Garg* Ûdj¦j¦ll¥ j¦¥}j¦|zj¦ Smt. Papia Sengupta Executive Director 29,77,837/- ÛØÛ}}|l}Ø j¦¥}j¦|zj¦ Shri Shanti Lal Jain Executive Director 15,15,397/- Û Øq| j¦¥}j¦|zj¦ Shri Vikramaditya Executive Director 14,23,096/- Û¨¦zØ ÎkÛoÛ j¦¥}j¦|zj¦ Singh Khichi ¥j¦z||Ï *retired during the year ¥j¦z|}°zÏj¦¥|}z|qvÖ}°ØÎ|| Performance Linked Incentives paid during 2018-19: Nil

79 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 l j§¦~j§}{j§¬j§älÙ}j§l uj§j§¢ Sitting Fee paid to Non-executive Directors: tÐÛj¦Ø àj¦ }° {|i {}°{| q|j¦Ûz|z¥« The Sitting Fee is paid to the non-Executive Directors as per the j¦y}uØj¦}°{|«j¦d||zj¦ vi |zj¦ v provisions of Nationalized Banks (Management & Miscellaneous Provisions) Scheme 1970, read with Government guidelines Ø««ãl|ÎØlj¦¥}j¦|zj¦«j¦ uj¦j¦zqØ for attending Board and Board Committee meetings. Details ÎÏÛ¥j¦z|ãlØ|j¦ili uj¦j¦j¦ of sitting fee paid during the Year 2018-19 are as under (No |||Î¡ }¥j¦j¦|zj¦«ØyãØj¦i ãØÛ^¥ sitting fee is payable to Whole Time Directors and Directors àj¦¸|Ø|zj¦«j¦j¦Û}°j¦j¦ uj¦j¦z|ÎÛ Î ¡ representing Government of India & RBI): ¨¦ |zj¦j¦| Sr. No. Name of the Director Amount (`) v¢ÎkdcÖ 1 Dr. Hasmukh Adhia 1,25,000 Û«j¦t| 2 Shri Ravi Venkatesan 2,10,000 ÛãØj¦vÛv l 3 Shri Bharatkumar D. Dangar 9,35,000 ÛØÛfi|| 4 Ms. Usha A. Narayanan 3,70,000 }° q§j¦Û¥ 5 Prof. Biju Varkkey 9,50,000 Ûl}j¦dl° 6 Shri Gopal Krishan Agarwal 7,40,000 ÛØÛàzj¦ 7 Smt Soundara Kumar 7,00,000 ÛÛ||Û{ 8 Shri Srinivasan Sridhar 2,10,000 }äj§Ü uj¬§ GENERAL BODY MEETINGS ÏÛ¥j¦i àj¦j¦{j¦«j¦ÛÛ ¥j¦| uj¦ The 22nd Annual General Meeting of the shareholders of the Bank for FY 2017-18 was held on Friday, 13th July 2018 at ¨¦z| j¦qe¥j¦ vÖz«dqØj¦Ûle¥q«||kØ Vadodara, in which following directors participated. |zj¦f}yØy¡ 1. Shri Ravi Venkatesan Chairman Û«j¦t| d{ 2. Shri P. S. Jayakumar Managing Director & CEO Û}Ûiqj¦ }° {|zi kj¦¥}j¦d{j¦Û 3. Shri Mayank K. Mehta Executive Director Û j¦j¦ÎØ j¦¥}j¦|zj¦ 4. Smt. Papia Sengupta Executive Director ÛØÛ}}|l}Ø j¦¥}j¦|zj¦ 5. Shri Ajay Kumar Director (RBI Nominee) 6. Prof. Biju Varkkey Director Ûdqj¦ |zj¦ d Ûde¥|ØÛ 7. Shri Bharatkumar D Dangar Director (Shareholder)- }° q§j¦Û¥ |zj¦ Chairman SRC ÛãØj¦vÛv l |zj¦ {j¦ d{idÛ 8. Ms. Usha A Narayanan Director (Shareholder) ÛØÛfi|| |zj¦ {j¦ d{iÛ Û -Chairperson ACB lØØÛ|Õj¦z||ãj¦ÛdqØ uj¦«j¦ The details of General Body Meetings held during the last three |||Î¡ years are given below: uj§j§~ {}¡j§i¡ z} j§¦}~{} Nature of Meeting Date & Time Venue Business Performed d{| uj¦ q|Û àj¦d¢Ü×¦ vÖz vÖzã| àj¦d¢Ü×¦ vÖzj¦¥oÛkÛzÛq| Ûd Ûe¥}Ûi j¦ e¥qÛi Extra 21st January 2019 qÛãlãØ d Øl¥Øj¦¥o«d}¥j¦j¦|zj¦«j¦e§tÛqÛ Ordinary at 10.00 a.m. }°{|j¦¥dÛzÏv j¦| General Meeting dj¦}ÛvzBank Issue of Equity Shares to Employees and Whole Time (EGM) of Baroda, “Baroda Bhavan”, Directors of the Bank under Bank of Baroda Employee Sir Sayaji Hall, Ground Floor, Share Purchase Scheme (“BOB-ESPS”) Head Office, R C Dutt Road, Alkapuri, Vadodara 390007 d{| uj¦ z }¥Î¤| qÛ|llÎvz ÛÛ||Û{j¦ àj¦j¦{j¦|zj¦j¦} EGM q 10th Î|lz| àj¦d¢Ü×¦ «o|lElected Shri Srinivasan Sridhar December 2018 vÖztÛ}ÛiÜ¦}ÛqÛe¥ Û as Shareholder Director of the Bank. at 10.00 a.m. j¦¢|Ûj¦}dv}zvÖ Û ¥j¦| uj¦ qe¥}¥Î¤| dj¦tvz x ¥j¦¥j¦ÏÛ}j¦d|z|j¦l iqÛi 22nd Annual q13th July, Sir Sayajirao Nagargriha, x j¦}¸j¦e¥{«j¦vÖØj¦e§tÛ} qÛ General Meeting 2018 at 10.00 a.m. Vadodara Mahanagar Seva l°ÎÛØj¦|j¦id|z|zl (AGM) Sadan, Bank of Baroda T.P.- x Approved Annual Financial Results for the year 1, F.P. 549/1, Near GEB 2017-18. Colony, Old Padra Road, x Approved raising of Equity Capital upto ` 6,000/- Akota, Vadodara – 390 020 crore by way of various modes by Special Resolution. d{| uj¦ o¥}¥Î¤| j¦}¸ãØj¦j¦d{|Ûd{}}°Øj¦j¦ EGM q 13th d j¦Øj¦Ûz}°Ø}j¦e§tÛ March 2018 qÛj¦|d|zØj¦lApproved by Special at 10.00 a.m. Resolution to issue upto 34,13,56,534 equity shares of the FV of ` 2/- each @ ` 157.46 per share to GOI on preferential basis. 80 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

uj§j§~ {}¡j§i¡ z} j§¦}~{} Nature of Meeting Date & Time Venue Business Performed d{| uj¦ z }¥Î¤| ÛãØj¦v lØyÛØÛàzj¦j¦ àj¦j¦ EGM q 22nd {j¦|zj¦«j¦}«|¥oØj¦lElected Shri December 2017 Bharatkumar D Dangar and Smt Soundara Kumar as at 10.00 a.m. Shareholder Directors of the Bank. Û ¥j¦| uj¦ q|}¥Î¤| x ¥j¦¥j¦ÏÛ}«j¦d|z|j¦l 21st AGM q30th June, Øyã mØj¦l 2017 at 10.15 a.m. x j¦}¸j¦e¥{«j¦vÖØj¦e§tÛ} qÛ l°ÎÛØj¦|j¦id|z|}°z|j¦l x Approved Annual Financial Results and declared dividend for the year 2016-17. x Approved raising of Equity Capital upto ` 6,000/- crore by way of various modes by Special Resolution. Û ¥j¦| uj¦ q|{Î¤| ¥j¦¥j¦ÏÛ}d|zØj¦ilij¦e¥ 20th AGM q24th June, j¦}|ÎÛ yApproved Annual Financial Results 2015- 2016 at 12.00 16. There was no Special Resolution. Noon

¡~±j§|} MEANS OF COMMUNICATION àj¦qz o{|«j¦{d}|z«dÎØ{j¦«j¦f|j¦ The Bank recognizes the need for keeping its members and stakeholders informed of the events of their interests through ÎØ« ·q|j¦«j¦ «oØj¦|j¦Ûdj¦ØrØÎ present means of communication. Timely, transparent and |j¦«i ÎØ{j¦«j¦}}zÛ¥ØÛj¦i }j¦Ø} enhanced level of disclosures to investors and stakeholders is o|d«j¦}°j¦tÛj¦|ÅØj¦qØÎ{j¦«j¦ÛÎãlØ ensured. To facilitate shareholders’ participation, Bank is using «{Îej¦i àj¦e§tÐ¢|j¦Øz|}tÜ¦¥f} {j¦Ø Electronic voting platform and allowing proxies and authorized representatives to vote on behalf of shareholders in absentia. Îd}°§Ûi }°Ø|{«j¦{j¦«j¦Ûd|}yØ«f|j¦Ûd The financial results of the Bank are submitted to the stock Øz|j¦Ûd|ØzØÎ exchanges, where the securities of the Bank are listed, àj¦j¦ÏÛ}«j¦|zj¦vj¦Û uj¦«f|j¦d|z|j¦ immediately after the conclusion of the Board Meeting }ÅØ uj¦j¦Û}Ø}ØØj¦f|t¢j¦i§o«q«j¦}°ØØj¦ approving the same. The results are also published in at least qØÎqÎ } àj¦j¦Û}°ØãØ oÛ ·Îà}j¦j¦ij¦ one English language national daily newspaper circulating in the whole or substantially the whole of India and in one daily d l°qÛãj¦tÐÛz|j¦o}qj¦}°}ãØ«Î newspaper published in the language of the region, where the dzo}fqj¦ÛãqÎ àj¦j¦}°{|j¦¥ registered office of the Bank is situated i.e. Gujarat (in Gujarati). yØÎdy¥Ø¤lqØ lqØÛ« «}°j¦Øj¦iqØÎà àj¦ÏÛ The Bank also organizes analyst meets, media meets, meetings }«Øy}° {|j¦tj¦j¦ {«j¦«j¦Û uj«¦Ûv with investors/analysts etc. on Bank’s financial results and management outlook on the same. Ût|j¦«j¦«j¦yãÛ uj«¦dqØj¦ØÎ The Quarterly / Year to Date / Annual Financial Results of the àj¦j¦ØÎÛe¥tvt¥j¦ÏÛ}«j¦yyj¦« Bank as well as the copy of presentation made to Analysts and j¦zÛle¥}°q«t|j¦Û}°ØØyd|d{j¦j¦o àj¦j¦Û et other official announcements are posted on the Bank’s Website KWWSZZZEDQNRIEDURGDFRP}f} {ÎØÎàj¦ uj¦« - www.bankofbaroda.com. The live web cast of presentation j¦Ûle¥}°ØØj¦ j¦tj¦Û{}°zk|ÎØ et« j¦ made to Analysts’ Meet is made accessible from links uploaded in the website and the archived webcast is also made available f} {j¦qØÎd lÎÛØ j¦tãÛz|«Øj¦ et on the website for 30 days. }f} {ÎØÛÎ

81 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

ÐÜj §v FINANCIAL CALENDAR Financial Year 1st April, 2018 to 31st March, 2019 ÏÛ¥ d}°o¥ kØ« t vd|i j¦Ø }o¥j¦|ÎØ|zj¦ vj¦Û uj¦ e¥ Board Meeting for considering of Accounts (Standalone & 22nd May, 2019 Consolidated) Û ¥j¦| uj¦j¦ÛØÛki y| ¢{}¡j§¢q|~±Ù¢ q Date, Time & Venue of the 23rd AGM ÖTkW3UmWU^ka8YkÅ^k^WF_FhDp u akeYkNêÈavNDt gk]Wt5Kdk IyDPmDt YkgdPxU_k Date - 27th June, 2019 Time: 10.00 a.m. Venue: Pandit Deendayal Upadhyay Nagar Gruh, Opp. Kailash Party Plot, Near Ajwa Chowkdi, Ajwa Road, Vadodara - 390 019. Î |zj¦|j¦ÛØÛk q|q|Øj¦ Book Closure Dates From 20th June, 2019 to 27th June, 2019 }°¢§ÛÜ¦¥}°}Øj¦|j¦Ûd ØØÛk q| Last Date for receipt of Proxy Forms 21st June, 2019 | j§¬¡¸o} SHAREHOLDERS’ INFORMATION àj¦j¦ãØ«||kØ}°kt¢j¦i§o«q««oÛ ·Îà¡ The Bank’s shares are listed on the following major Stock Exchanges in India: ||t¢j¦i§o«qd¢Ü¦e v Ûie¥tv CCi§o«q}q Ü¦qqÛqÛãe¥t¢¥ National Stock Exchange of B S E Ltd., |®j¦¥j¦¢}§ Ø India Ltd., Phiroze Jeejeebhoy Towers |® }¥ ztÐÛtÜ¦t¥ “Exchange Plaza” 25th Floor, Bandra Kurla Complex, Dalal Street, Fort, e¥ e¥ Bandra,(East), Mumbai - 400 001 i|ie¥j¦v¡%$1.%$52'$ Ûie¥j¦v¡ Mumbai - 400 051 BSE CODE : 532134 i§o«q««oÛ ·ãÛ}°ØãØ«j¦ {«¥j¦oÛ|j¦j¦ NSE CODE : BANKBARODA The annual listing fees in respect of all the securities listed with ãlØ|j¦zlÎ the exchange(s) has been paid. t£j§iö¬q¬¬ ¬j§ ¬j§ {¬j§Üd e¡v¨ SHARE PRICE, VOLUME OF SHARES TRADED IN STOCK vt EXCHANGES AND INDEX DATA a. Share Price, Volume of Shares Traded in Stock it¢j¦i§o«q«««j¦z«j¦ÛØy Exchanges (From 01.04.2018 to 31.03.2019) (Equity Share of Øj¦ }°Øj¦j¦d j¦Øj¦e§tÛ the Face Value of `2/- each) }}t£j§iö¬qd£Ý§e¡v i}ie¦ Üie¦ £t£j§iö¬q National Stock Exchange of India Limited (NSE) BSE LTD. (Bombay Stock Exchange) d| Period ~ ~ ~ ~ fooÙ }}Ù Volume Traded fooÙ }}Ù Volume Highest (`) Lowest (`) Highest (`) Lowest (`) (Nos.) Traded (Nos.) d}°APR 2018 155.30 135.25 25,50,05,866 155.35 135.45 1,70,10,823 e¥MAY 2018 149.45 125.25 28,99,31,354 149.35 125.50 1,93,04,373 q|JUN 2018 138.50 112.15 33,55,94,591 138.45 112.30 4,08,04,564 qe¥JUL 2018 155.70 109.50 39,92,84,180 155.55 109.60 4,83,23,108 dlØAUG 2018 157.50 141.45 31,36,79,725 157.45 141.85 1,98,24,840 Ø SEP 2018 156.50 97.35 62,48,18,606 156.25 97.00 3,85,11,938 d§Ø OCT 2018 114.75 91.00 54,74,84,882 115.05 90.70 3,95,74,360 | NOV 2018 118.40 103.45 37,16,59,148 118.30 103.00 2,69,18,616 z DEC 2018 119.95 102.40 27,12,06,464 119.95 102.55 2,43,32,016 q|ÛJAN 2019 124.60 107.65 34,99,04,832 124.60 107.75 2,31,61,791 Ü¦ÛFEB 2019 114.00 98.50 23,13,11,102 113.95 98.60 1,56,98,505 o¥MAR 2019 133.10 101.60 40,13,22,107 133.10 101.85 2,28,56,383

82 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

Üd~± o¦Ùj§e¡v¨vt j§d¡Ù b. Index Data from April 2018 to March 2019 (Monthly Closing Values) {}¡j§ }«tÜ }«tÜáj§ ÜdÜi}ie¦ ii¡v~ÜÜie¦ ii¡v~ÜÜie¦ ÜdÜÜie¦ Date NIFTY 50 NIFTY BANK ~±Ùj§~ij§ }¨ áj§¨ ~±Ùj§~ij§ iÝ§Üj§e¨tÜ S&P BSE S&P BSE iÝ§Üj§e¨tÜ SENSEX BANKEX BOB NSE BOB BSE (Equity Share (Equity Share of FV of `2/- of FV of `2/- each) each) 30.04.2018 10739.35 25531.60 148.95 35160.36 28651.87 148.65 31.05.2018 10736.15 26956.20 136.85 35322.38 30007.14 137.05 29.06.2018 10714.30 26364.20 112.65 35423.48 29250.56 112.80 31.07.2018 11356.50 27764.15 153.35 37606.58 31005.96 153.45 31.08.2018 11680.50 28061.75 152.95 38645.07 31741.91 152.90 28.09.2018 10930.45 25119.85 99.50 36227.14 27992.18 99.40 31.10.2018 10386.60 25153.25 110.65 34442.05 28359.59 110.80 30.11.2018 10876.75 26862.95 105.05 36194.30 29948.98 104.70 31.12.2018 10862.55 27160.20 118.80 36068.33 30376.68 118.85 31.01.2019 10830.95 27295.45 112.45 36256.69 30731.37 112.45 28.02.2019 10792.50 26789.90 101.00 35867.44 30027.41 101.05 29.03.2019 11623.90 30426.80 128.65 38672.91 34141.94 128.80 qtÑ d¡Ù iq¬t d¡Ù ~¸ÙÙz}j§¬j§Ü REGISTRAR & SHARE TRANSFER AGENT, SHARE j§Ù¬j§}~t} TRANSFER SYSTEM AND REDRESSAL OF INVESTORS’ GRIEVANCES àj¦|j¦Û¥Ü¦|tj¦}°j¦d}|qtÐdd Øiq«t The Bank has appointed M/s. Karvy Fintech Private Limited as dtÛi j¦}«|§Øj¦Îqj¦j¦¥ ¢vd Ø its Registrars and Share Transfer Agent (RTA) with a mandate to ã qãlØ|j¦}°j¦|{j¦«j¦d|{zq¥j¦| process transfer of shares / bonds, dividend / interest payments, |j¦«j¦Ûj¦Ø«j¦{|Øy ¢vqÛj¦| {Ûd| recording of shareholders’ requests, solution of investors’ lØ{«j¦Õj¦|ÅØj¦|Î|j¦d}|d Øk grievances amongst other activities connected with the issue of shares / bonds. The investors may lodge their transfer deeds d|{j¦Ø«||kØ}Ø}dtÛij¦ãqj¦ØÎà¡ / requests / complaints with the RTA at following address: j§Ü¦Ý§}tj§~± |t¡ àj¦d¢Ü×¦ vÖz j¦Û¥|t¢ Û}¢t| i lo ÛÜ¦|à M/s. Karvy Fintech Private Limited (Unit: Bank of Baroda) Karvy Selenium Tower B, Plot No.31 & 32, Gachibowli, vtÐ§t||¨¦lv l}ÛÎz z Financial District, Nanakramguda, Serilingampally, Ü¦|¡ Hyderabad - 500 008. Phone: (040) 67162222; e¥¡HLQZDUGULV#NDUY\FRP E Mail: [email protected] |qÛ}kli ¢ v«j¦i àj¦|v «o|Ûj¦ÛãÛ|§Øj¦Û For privately placed Bonds, the Bank has also appointed Îqj¦}Ø|ÛozlÎ¡ Debenture Trustee as follows: de¦vÜÜde¦tÑtÜÜ~¦ IDBI Trusteeship Services Ltd. i| v lãØdj¦|Ûl¥ v¥itt Asian Building, Ground Floor,17, R Kamani Marg, Ballard Estate e¥tÛÜ¦|¡ Mumbai – 400 001. Tel: (022) 40807000; Email: [email protected] e¥¡LWVO#LGELWUXVWHHFRP The Bank has also established Investors' Services Department, àj¦|j¦}¥tj¦¥ e¥«|j¦i ãlj¦Ûy}|ãÛj¦Û headed by the Company Secretary at Corporate Office, Mumbai Îqj¦}°ãÛf}Î}° {j¦Øj¦j ¦}|ÛoÎàqÎ {j¦ wherein Shareholders can mail their requests / complaints for d}|d|{«j¦Ø«j¦{|ÎØ||kØ}Ø}ãqj¦Ø resolution at the address given below. They can also send Îàd}|Ûj¦Ø«d|{}°{|j¦¥ vÖzj¦||kØ}Ø their complaints/requests at the address given below at Head Office, Vadodara: }ãÛãqj¦ØÎà

83 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

àj¦d¢Ü×¦ vÖz àj¦d¢Ü×¦ vz Bank of Baroda Bank of Baroda |j¦i ãl Î}° {j¦ Investors’ Services Department General Manager, 7th Floor, Baroda Corporate Centre Operations and ØÛ q vÖzj¦¢}¥t«t }o|i i C-26, G-Block, Bandra-Kurla Complex Services, ÛqÛ ¢j¦ ®j¦j¦¢}§ £Ø vÖzã| Bandra (East), Mumbai – 400 051 7 th Floor, Baroda ® }¥ e¥ dÛzÏv Telephone : (022) 6698 5733/5743 Bhavan, R C Dutt zã¡ dj¦}ÛvÖz E – mail : investorservices@ Road, e¥LQYHVWHUVHUYLFHV#EDQNRIEDURGDFRP tÛÜ¦|¡ bankofbaroda.com Alkapuri, Vadodara f}§Øe¥} ÛoÛ| e¥¡RSHUDWLRQVKR# (The aforesaid e-mail ID is exclusively 390 007 j¦i }°j¦tÛj¦dj¦Øi j¦| EDQNRIEDURGDFRP designated for investors' complaints Telephone : (0265) vÛ |j¦d{}y}Ø pursuant to Regulation 6(2)(d) of SEBI 2316792 j¦Ûle¥Î (Listing Obligations and Disclosure E–mail: operations. Requirements) Regulations 2015. ho@bankofbaroda. q{j¦|zj¦ vj¦Û}°j¦j¦ Further, Shareholders who wish to ask com }°|}â|oÎØÎàd}|}°|||kØ questions to the Board of Directors of de¥vÛ}j¦j¦ØÎà the Bank can mail their questions at – VKDUHKROGHUGLUHFWRUV#EDQNRIEDURGDFRP shareholedrdirectors@bankofbaroda. com àj¦|ÅØj¦ØÎj¦}°ØØj¦ilãÛãØj¦«j¦d Ø The Bank ensures that transfer of all the physical shares d|{j¦iq|j¦z|j¦Ûd{j¦ãÛØ}°ãÛÎqi tendered are duly effected within a period of -15- days from the date of their lodgment. | Ùj§Ù DISTRIBUTION OF SHAREHOLDING i o¥Øj¦j¦{Øj¦}t|¥¡ a. Shareholding Pattern as on 31st March 2019

¨¦ Description j¦ j¦Û k j¦ j¦ Sr.No. Total Cases Total Shares Total Cases % 1 ãØj¦ Government Of India 1 1,67,34,59,020 63.26 2 odÜ ¦v Mutual Funds 139 36,77,62,427 13.90 3 zÛ}t¥Ü¦| Foreign Portfolio - Corp 142 25,88,92,674 9.79 4 |Û§Ø Resident Individuals 363584 14,83,38,997 5.61 5 Ûj¦}| Insurance Companies 39 10,66,31,895 4.03 6 j¦¢}¥t|j¦ Bodies Corporates 2159 2,91,78,427 1.10 7 tÐt Trusts 45 2,45,63,153 0.93 8 {|z Clearing Members 625 1,13,24,488 0.43 9 d|ÛãØÛ Non Resident Indians 4554 91,60,680 0.35 10 àj¦ Banks 29 47,46,523 0.18 11 H U F dãqØÎ|z} 5130 34,64,807 0.13 ioiÜ¦ 12 Non Resident Indian Non d|ÛãØÛl 1653 34,46,212 0.13 }°ØØ¥|l Repatriable 13 j¦¥oÛ Employees 2035 20,46,446 0.08 14 j¦}j¦|Ü ¦v Alternative Investment Fund 8 16,60,296 0.06 15 ãØÛÏÛ yi Indian Financial Institutions 4 5,35,855 0.02 16 zÛj¦¢}¥t|j¦ Overseas Corporate Bodies 3 1,10,000 0.00 17 zÛ ylØ|j¦ Foreign Institutional Investors 27 1,09,275 0.00 18 i| ÛiÜ¦Û NBFC 17 82,443 0.00 19 zÛ|lj¦ Foreign Nationals 4 2,014 0.00 20 |ttÐtd¢Ü×¦e v Unit Trust Of India 1 500 0.00 ˆºÅ¥¸ Total 380199 2,64,55,16,132 100.00

84 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

Û {j¦«j¦Øo¥Øj¦j¦Û b. Distribution of Shareholders – Category Wise as on 31st March 2019 ¨¦ k Û «j¦Û k «j¦}°ØØ j¦Û k j¦}°ØØ Sr. no Category No. of Cases % of Cases No of Shares % Amount 1 1 - 5000 204799 53.87 1,21,54,947 0.46 2 5001 - 10000 49883 13.12 1,18,30,181 0.45 3 10001 - 20000 74641 19.63 3,63,18,328 1.37 4 20001 - 30000 27455 7.22 2,51,00,777 0.95 5 30001 - 40000 4323 1.14 50,93,397 0.19 6 40001 - 50000 5774 1.52 88,69,116 0.34 7 50001 - 100000 8190 2.15 1,91,87,589 0.73 8 100001i fd{j¦ 5134 1.35 2,52,69,61,797 95.52 100001 and above j§¢TOTAL: 380199 100.00 2,64,55,16,132 100.00 Ü~±ÙäÙ¬j§dä Ùj§Üj§ c. Dematerialization of Securities: The shares of the Bank are under compulsory demat list of àj¦j¦d|¥} Ûj¦ÛvÛttj¦d Øl¥ØdØÎi àj¦ SEBI and the Bank has entered in to Agreements with National |||§tÛv}¢qtÛ i|ivÛi i «tÐv}¢qtÛ Securities Depository Limited (NSDL) and Central Depository §tÛ ÛvÛii j¦y àj¦j¦«j¦dãØj¦Ûj¦j¦i Services (India) Limited (CDSL) for dematerialization of Bank’s j¦j¦Î{j¦d}|i|ivÛidyÛvÛii shares. Shareholders can get their shares dematerialized with j¦{dãØÛj¦Øj¦j¦j¦ØÎà either NSDL or CDSL. As on March 31, 2019 the Bank has following number of Equity ||kØj¦d|o¥Øj¦ àj¦j¦}||kØ Shares in physical and dematerialized form, as per the detail kj¦e§tÛãØj¦i dãØj¦}Îà given below:

¨¦ k Nature of holding «j¦Û k «j¦Û k }°ØØ S.no {Øj¦}°j¦ No. of Cases No. of Shares Percentage % 1 ÛvÛii CDSL 137298 1,72,91,75,402 65.36 2 i|ivÛi NSDL 204285 88,66,17,603 33.51 3 ãØj¦ PHYSICAL 38616 2,97,23,127 1.12 j¦ Total: 380199 2,64,55,16,132 100.00 àj¦|¥«q Øj¦i f}ãq|}¥ The Bank had forfeited 1,36,91,500 equity shares (27,38,300 q|« f}ãq|}¥ shares before sub-division) in the year 2003 and out of the same 24000 equity shares (4800 shares before sub-division) o¥Øj¦´j¦zli were annulled up to 31st March 2019. o¦Ùj§i©§fo¡ÙkÙ¬f~| ¬j§ÜzÙ¢ STATUS OF SHARES LYING IN ESCROW/SUSPENSE ifo¡ÙkÙ¬f~| ¬j§ÜzÙ ä Ùj§ }~{¦lÜ ACCOUNT AS ON 31st MARCH, 2019 j§~j§ili a. Status of shares lying in Suspense A/c (Physical Shares – returned undelivered) j¦}°ãj¦ ÏÛ¥j¦ ÏÛ¥j¦z|| o¥j¦f} {d Ø Opening Balance as on z|}°}Ød|{«j¦Û j¦ili Closing Balance as on 31st 01.04.2018 k Shares debited during the March 2019 No. of requests Financial Year 2018-19 received during the Financial Year 2018-19 {j¦«j¦Û «j¦Û {j¦«j¦Û k {j¦«j¦Û «j¦Û k {j¦«j¦Û «j¦Û k k k No. of Shareholders k No. of Shares k No. of Shares No. of No. of No. of No. of Shareholders Shares Shareholders Shareholders 69 86000 0 0 0 69 86000

85 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ûi¨¦fo ØkØ««f} {«j¦ÛyØ vÛt | b. Status of Shares lying in Escrow / Suspense A/c (Demat }z¥lÛj¦}j¦ili Shares – returned undelivered) j¦}°ãj¦ ÏÛ¥j¦z| ÏÛ¥j¦z|q o¥j¦f} {d Ø Opening Balance as on }°}Ød|{«j¦Û k j¦ili Closing Balance as on 31st 01.04.2018 No. of requests received Shares credited during the March 2019 during the Financial Year Financial Year 2018-19 2018-19 {j¦«j¦Û «j¦Û {j¦«j¦Û k {j¦«j¦Û «j¦Û {j¦«j¦Û «j¦Û k k k No. of Shareholders k k k No. of Shares No. of No. of No. of No. of No. of Shareholders Shares Shareholders Shares Shareholders 157 93800 2 2 1110 155 92690 Î}tj¦ØÎàj¦q Øj¦f§Ø«j¦Øj¦zze|j¦iz We confirm that the voting rights on the shares stated at the |ÎÛ j¦ØØ Øj¦d Øj¦¢ i Øy Û j¦«j¦iØ{j¦} last column of table (a) and (b) above shall remain frozen till the rightful owner of such shares claims the shares. j¦qÛÎlÛ DIVIDEND / INTEREST PAYMENT THROUGH ELECTRONIC ä¡qj§e¨tÑ}j§|älÙ}¢ MODES àj¦|j¦«j¦qÎ¢|j¦«¸«vtziliÎà«}ã £v« The Bank is paying Dividend on Shares / Interest on Bonds } qj¦ãlØ|ã||e§tÐ|j¦{«j¦ÎÎef´j¦ to the Investors through various electronic modes, wherever mandate is given by the investors. For the purpose, the Bank i àj¦||d¢ttv§Û lÎg i|iÛio ||e§t¢|j¦ is using the services of National Automated Clearing House §Û l¥ i|e¥Ûi dtÛqÛii|e¥iÜ¦tÛØyÛ{qdzj¦Û (NACH), National Electronic Clearing Services (NECS), RTGS, d«j¦}°lj¦ÎÎ NEFT and Direct Credit etc. |j¦d}|àvt àj¦j¦qtÐi d Øiq«tdy¥Øj¦Û¥Ü¦|tj¦ Investors may lodge their mandate with Bank’s Registrar & }°j¦}e}t¥«zi}Ø}zq¥j¦j¦ØÎà Share Transfer Agent i.e. M/s. Karvy Fintech Pvt. Ltd., at the address given in this report. oÜk~ Ü Secretarial Audit àj¦¸j¦}Ø¥j¦il|Ûoj¦Ûi vj ¦}|Ûj¦j ¦}|Û Bank has appointed M/s. Ragini Chokshi & Co. Practicing oj¦}«|§Øj¦lÎÎj ¦}|Û¥j¦oÛk}Û Company Secretaries for Annual Secretarial Audit Report and }t¥i ¥j¦oÛd|}|}t¥ |{Øj¦¥j¦ØÛÎ¥j¦ Annual Secreterial Compliance Report for the year ended 31.03.2019. Annual Secretarial Audit Report has been annexed oÛk}Û}t¥ej¦y l|Î herewith. ~±j§tÜj§ DISCLOSURES Î ãØj¦}j¦ÛãÛ}°j¦j¦j¦e¥ÎØ}¥}tÛ¥ Î|ÎÛ ÎØ 1. There is no materially significant Related Party Transaction Îqj¦}j¦Ø} àj¦j¦ÎØ«j¦yj¦e¥tj¦Îe {« that has potential conflict with interests of the Bank at large. ãØÛ^¥ àj¦j¦|z¥«j¦d|}|j¦ØÎik j¦| {Ût}}« The Related Party Disclosure is made in the Notes on «}tÛ¥ {Û}°j¦tÛj¦j¦lÎ Accounts in compliance with RBI Guidelines in this regard. àj¦}}âØÛ|Õj¦z|} qÛ q ·j¦ÛãÛ« 2. There is no non-compliance by the Bank in respect of Regulations/ Guidelines issued by SEBI / Stock Exchanges j¦ÛãÛ|j¦}°{j¦Ûdy¥Øt¢j¦i§o«qddy Û¸ / any Statutory Authority on any matter related to capital j¦Û||z¥«i z|z¥«j¦d|}||j¦|j¦i|Øj¦e¥ markets during the last 3 years and as such no penalties / z vlld|ÎÛj¦Û}°j¦j¦j¦e¥}°Ø {llÎ strictures imposed on the Bank. Î Û¸j¦¢}¥tl|ÕoÛ ·|«j¦Ûd|oÛ9j¦f}ãl 3. We confirm the compliance of the requirement of Corporate j¦d|}|j¦Û}tj¦ØÎ Governance Report of sub-paras (2) to (10) of Schedule V of SEBI Listing Regulations ãÛ|zj¦«¸Îmj¦Ûle¥Îj¦o¥Øj¦f|j¦}} j¦ÛãÛ}°j¦j¦j¦e¥ {|ÎÛ Î 4. All the Directors have disclosed that they have no relationship inter-se as on 31st March 2019. àj¦|ÏÛ¥j¦z|j¦¢vtÛ«j¦e¥}|ÎÛ j¦Î 5. The Bank has not traded in commodities during the F.Y. dØ¡CCj¦¢vtÛj¦ÛØqkdj¦¢vtÛ olØ{ {Û 2018-19 and hence the information on “Commodity price o||Î risks and commodity hedging activities” is NIL. Ø |zj¦«j¦i}oj¦¥¨¦¡ 6. Familiarization programme for Independent Directors àj¦j¦Ø |zj¦«j¦ãy¥dqØj¦ili}oj¦¥¨¦j¦ The details of the Familiarization Programme conducted àj¦j¦Û etKWWSVZZZEDQNRIEDURGDFRPZULWHUHDGGDWD,PDJHV for the Independent Director of the Bank are available on the Bank’s website at https://www.bankofbaroda.com/ SGI'HWDLOVRI'LUHFWRUV7UDLQLQJSGI}f} {Î writereaddata/Images/pdf/Details-of-Directors-Training.pdf

86 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

ÎÛ dz|z¥ 7. Whistle Blower Guidelines The details of the Bank’s Whistle Blower Guidelines for ãØj¦j¦q|ÎØ}°j¦tÛj¦i o|}°zØj¦Û {Û the public based on Government of India Resolution j¦} }Ûde¥vÛ}Ûde¥ j¦d{}l«j¦iÎÛ d on Public Interest Disclosure & Protection of Informer z|z¥ {Û àj¦j¦Û etKWWSVZZZEDQNRIEDURGD (PIDPI) are available on the Bank’s website at https:// FRPZULWHUHDGGDWD,PDJHVSGIZKLVWOHEORZHUJXLGHOLQHVIRU www.bankofbaroda.com/writereaddata/images/pdf/whistle- ZHEVLWHSGI}f} {Î blower-guidelines-for-website.pdf No personnel has been denied access to the audit e {«j¦ÛãÛj¦¥j¦j¦k}ÛØj¦i§j¦| committee. ||ÎÛ j¦lÎ 8. Policy on Related Party Transactions and Material ·}tÛ¥|z|i ÎØ}¥d| l« {Û|ÛØ Subsidiaries The details of the Bank’s Policy on Related Party ·}tÛ¥|z|i ÎØ}¥d| l« {Û|ÛØ àj¦j¦Û et Transactions and Material Subsidiaries are available on KWWSVZZZEDQNRIEDURGDFRPZULWHUHDGGDWD,PDJHVSGIUHODWHG the Bank’s website at https://www.bankofbaroda.com/ SDUW\SROLF\SGI}f} {Î writereaddata/images/pdf/related-party-policy.pdf Îd«j¦j¦¥y}|fØ}ÛvÖ| |j¦}°Ø{}°ØØ 9. Disclosures in relation to the Sexual Harassment of Women d{|j¦ {«}°j¦tÛj¦ at Workplace (Prevention, Prohibition and Redressal) Act, 2013 Ï¥j¦z|zq¥j¦Ø«j¦Û Ï¥j¦z||ØØj¦Ø«j¦Û ÏÛ¥j¦d ØØj¦ Øj¦Ø«j¦Û k kNumber of Complaints kNumber of Complaints disposed Number of Complaints pending as on end of the filed during the financial year off during the year financial year 73 4 {ØÏÛ¥dy¥Ø¤j¦z| y¸}°}Ø¨¦vt 10. List of all credit ratings obtained by the entity along with any revisions thereto during the relevant financial year i.e. t l {|ØãÛzj¦e¥Îj¦ÛoÛq«f yj¦ 2018-19, for all debt instruments of such entity or any fixed ãÛ|kØ{qj¦¥¨¦|{«j¦ l°Îj¦i deposit programme or any scheme or proposal of the listed oÛ · yj¦Ûq|}°ØoÎãØ«Îz« entity involving mobilization of funds, whether in India or f|j¦ÛoÛ¡ abroad $VRI kØj¦¦}7\SHRI,QVWUXPHQW ¨¦ j¦&$5( e¨¦ e vt l °j¦j¥¦ vÛ0RRG\ Ü¦o &5,6,/ ,&5$ ,1',$5DWLQJ %ULFNZRUN )LWFK ,,d}t,, ¢v%DVHO,, iiiy iiy$$ iiiy 8SSHU7LHU,,%RQGV $$$6WDEOH 6WDEOH $$$6WDEOH ,,de¥}ÛvÛde¥ ¢v%DVHO,,,3', iiiy iiy$$ %RQGV $$$6WDEOH 6WDEOH ,,,t,, ¢v%DVHO,,,7LHU,, iiiy iiiy iii iiiy %RQGV $$$6WDEOH $$$6WDEOH $$$ $$$6WDEOH ,,,itÛ, ¢v%DVHO,,,$7,%RQGV iiy iiy iiy $$6WDEOH $$6WDEOH $$6WDEOH q}°}&HUWLILFDWHRI'HSRVLW i $ àj¦d¢Ü×¦ vÖz àj¦d¢Ü×¦ vÖz z| |kØj¦}°Ø}Ûqk j¦|&RXQWHUSDUW\5LVN$VVHVVPHQWRI%DQN Ûii Ûd RI%DURGDDQG%DQNRI%DURGD /RQGRQ GHEWLQVWUXPHQWV }Û Ûd %DD FU 3 FU Î¥Øt l|kØ9LDELOLW\5DWLQJGHEWLQVWUXPHQWV Û ÛEE àj¦d¢Ü×¦ vÖz àj¦d¢Ü×¦ vÖz z| {qj¦¥¨¦j¦}°Ø}Ûqk j¦|&RXQWHUSDUW\5LVN$VVHVVPHQW Ûii Ûd RI%DQNRI%DURGDDQG%DQNRI%DURGD /RQGRQ IL[HGGHSRVLWSURJUDPPH }Û Ûd %DD FU 3 FU Î¥Øt l{qj¦¥¨¦9LDELOLW\5DWLQJIL[HGGHSRVLWSURJUDPPH Û ÛEE ¢¨¸Ï¸Û¸¨¸«¸¥j½¦z¸¸›¸œÏ¸œ÷¸›¸e¥½¢t¿l¸* Fresh rating obtained during the FY 2018-19 ÏÛ¥j¦z|t l« {|¡ Revision in rating during F. Y. 2018-19: z| j¦q|j¦vÛ^e|t¥| àj¦d¢Ü×¦ vÖzd àj¦d¢Ü×¦ vÖz Moody’s Investor Service on 12th June 2018 upgraded the Counterparty Risk Assessment of Bank of Baroda and Bank z| j¦j¦f t}tÛ¥j¦i«tj¦ Ûii Ûd }Û Ûd Ûii Ûd of Baroda (London) from Baa3(cr)/P-3(cr) to Baa2(cr)/P-2(cr). }Û Ûd «d}l°vj¦z| j¦q|j¦Ü¦ot l| àj¦d¢Ü×¦ vÖzj¦Û Fitch Ratings on 13th June 2018 downgraded the Viability Î¥Øt lj¦ Û Û Û Û«vf|l°vj¦z| j¦Ø j¦Ü¦o Rating of Bank of Baroda from bb+ to bb. Fitch Ratings on 26th September 2018 placed the Viability Rating of Bank of Baroda t l| àj¦d¢Ü×¦ vÖzj¦Û ÛtÛt l Û Ûj¦t l¢o|ltj¦z of bb on Rating Watch Negative. ej¦}tj¦j¦|zj¦ vj¦Û«Ø |zj¦e| 87 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

|««zÛle¥ØÕj¦}}|j¦ØÎàd}° {Ø }|ã¥ 11. Confirmation that in the opinion of the board, the independent directors fulfill the conditions specified in |ÎÛ ÎàÎ these regulations and are independent of the management. qÎ ÏÛ¥«|zj¦ v¸dÛj¦Ød|¥} - Yes d}Ø|zj¦ vj¦Ûj¦ÛØj¦ÛÜ¦| 12. Where the board had not accepted any recommendation of any committee of the board which is mandatorily required, | i j¦d{Û||z¥td{|d t|dÎ¥j¦ ylØ in the FY2018-19 – NIL }«tj¦qi|{«j¦f}lj¦ ÏÛ¥j¦ 13. Details of utilization of funds raised through preferential z|ij¦âd{|Ûd t|dydÎ¥j¦ ylØ}«t|ÎÛ allotment or qualified institutions placement as specified under Regulation 32 (7A) – No preferential allotment or j¦lÎ qualified institutions placement during FY2018-19 oÛ · yfj¦Ûd| l«¸j¦Ød{} {j¦ 14. Total fees for all services paid by the listed entity and its k}Ûj¦«df|ãÛ|tj¥¦ yd«q«k}Ûj¦ij¦ subsidiaries, on a consolidated basis, to the statutory auditor and all entities in the network firm/network entity ãlÎãÛd«j¦i}°zÏj¦Ü¦Ûj¦v of which the statutory auditor is a part. - Rs. 49.32 crores j ¦}|Ûo}°¡edj¦}°}j¦|zj¦vj¦ 15. A certificate from a Company Secretary in practice that none of the directors on the board of the company have j¦ÛãÛ|zj¦j¦j ¦}|Ûj¦|zj¦j¦¢}¥t«j¦ been debarred or disqualified from being appointed iÛj¦Û{|j¦ÏØ¸|§ØdyqÛkq| or continuing as directors of companies by the Board oØdydl|ÎÛ uÎlÎ}°}}°}Øj¦ / Ministry of Corporate Affairs or any such statutory authiority - Certificate obtained - None of the director is j¦e¥ãÛ|zj¦ j¦ |§ØqÛkq| oØdydl debarred or disqualified from being appointed as Director |ÎÛ uÎlÎ in the Bank. l d}¦d~i¡ NON-MANDATORY REQUIREMENTS àj¦¸ Û oÛ|j¦Øy}°j¦tÛj¦dj¦Øi || The Bank has complied with all the applicable mandatory j¦ØÎØf} {j¦e¥le¥ãÛld|¥dj¦Ød«j¦ requirements as provided in SEBI (Listing Obligations & d|}|j¦lÎ Disclosure Requirements) Regulations, 2015. ld|¥dj¦Ød«j¦j¦¥||j¦|||Îà The extent of implementation of non-mandatory requirements is as under:

©§ l d}¦dj§Ùi¤ j§¦}}j§ÜzÙ Sr. No. Non-mandatory requirements Status of Implementation 1 v¦ d}~}j§l oÛ ·j¦}|Ûj¦ko¥}d{j¦j¦¥ãã|j¦i ãØj¦|ÛÎkdcÖj¦Û|§Ø v¥j¦l lj¦¥}j¦d{d{j¦Øj¦iqj¦ØÎàdf|j¦Ûv¤tÛ j¦¥}j¦d{j¦}«z| j¦j¦ÛÎ {Ûko¥j¦Û}°Ø}Ø¥j¦Ûd|ØzÛqj¦ØÛÎ ãØj¦`¸qÛz|z¥ j¦d|}|j¦l The Board Complied with. A non-executive chairperson may be entitled to maintain The Government of India has appointed Dr. Hasmukh a chairperson’s office at the listed entity’s expense and Adhia as Non-Executive Chairman of the Board w.e.f. also allowed reimbursement of expenses incurred in 01.03.2019. performance of his duties. The guidelines issued by GOI are complied with. 2 k~ ÜdÏÙ¦ àj¦j¦Ûk}Û}t¥«e {«j¦e¥dÎØ¥|ÎÛ Î j¦}|Ûj¦dlÏÛ«j¦Ûyj¦d}||oÎi There is no qualification in Auditors report of the Bank. Audit Qualifications Company may move towards a regime of unqualified financial statements. 3 d|i¡kj§¦~j§d|j§ Üj§dldl~{ d}~}j§l oÛ ·j¦}|Ûd{i kj¦¥}j¦d{j¦Ûj¦}z«} àj¦j¦|zj¦ vj¦Û o| àj¦j¦Ûj¦}|Û f}¨¦«j¦dq¥| dldl§Ø«j¦|§Øj¦j¦ØÛÎ i d Ø d{|j¦{| Øj¦ÛqØÛÎãØ Separate posts of chairperson and chief executive officer j¦¸z| j¦ÛÎkdcÖ v¥j¦l The listed entity may appoint separate persons to the j¦¥j¦Ûd{Øyz| j¦Û}Ûiqj¦j¦ post of chairperson and managing director or chief }° |{|zj¦i kj¦¥j¦Ûd{j¦Û }¥j¦j¦|zj¦ executive officer. j¦¦}«|§Øj¦lÎ Complied with. The composition of the Board of Directors of the Bank is governed through “Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. The Government of India has appointed Dr. Hasmukh Adhia as Non- Executive Chairman of the Board w.e.f.01.03.2019 and Shri P.S. Jayakumar as MD & CEO (Whole-time Director) w.e.f. 13.10.2015.

88 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

4 d¡Ù j§k~ Üj§¬j§Ü ~tÖl v¥j¦Ûk}ÛØj¦Û o|i ej¦Û zã¥Ø¥ z d Øj¦k}Ûj¦Û{k}ÛØj¦}t¥j¦ |j¦«dy¥Ø^¥ àj¦¸qÛj¦li|z¥«i }}« j¦ØÎà j¦{|Øj¦ÛqØÛÎq|j¦ àj¦d|}|j¦ØÎ Reporting of Internal Auditor The composition & terms of reference of the Audit The Internal Auditor may report directly to the Audit Committee of the Board inter-alia covering Internal Audit Committee. function is governed through the guidelines / circulars issued by the Regulator i.e. Reserve Bank of India, which the Bank complies with. j§£~¦ tl}Öj§Üdj§Ùd¬j§d}~}j§~±j§tÜj§ ¢ Disclosure of the compliance with Corporate Governance requirements |¨¦ }Ø d|}|yØ Regu Title / Brief description Compliance Status No. 17 |zj¦ v àj¦d¢Ü×¦ vÖzj¦|zj¦ vj¦lu|dej¦Û zã¥ØÕ àj¦j¦Ûj¦}|Û f}¨¦«j¦dq¥| Board of Directors i d Ø d{|j¦d{Û|ÎÎ¢j¦}|Ûi§t«j¦l {|e { «l|ÎÛ ÎØÎd{|j¦Û{ L j¦d|«j¦|®j¦ã||{j¦«¸ |¥oØØÛ||zj¦«j¦dØ§ØãÛ|zj¦«j¦Û|§Ø| j¦|j«¦®j¦¸d{| j¦Û{ j¦d{Û|j«¦®j¦j¦Ø j¦j¦qØÎ àj¦ãØÛ^¥ àj¦¸|ØÎ v¥j¦d{j¦ j¦Û|ÛØd|}z|d|}|l|Õi àj¦j¦}°Ü¦e} oo¥j¦|«ØÛØÎØÎ Î|ÅØj¦qØÎj¦Û v¥j¦Ûj¦¥}°Û}zÛ¥i Ø Î v¦j§¡j§} v¥j¦l|Õj¦lØ ÎØ ||j¦f´ v¥j¦j¦¥|}z|ej¦ÛØ«ØyØ |zj¦«ÎØ§ØlØ|zj¦«j¦j¦¥|}z|j¦ j¦| Áj ¦t liq«Ûj¦{ j¦qÎÎ j¦|j¦ØØ|zv«j¦ Û oÛ · {Øi d}°j¦tÛj¦dj¦Øi |d{|j¦}°{|«dz| j¦q|Ûj¦ v¥j¦ j¦|} Û¸qÛ |iz|z¥«j¦d|}|{¥Øj¦lÎ The Composition & terms of reference of Board of Directors of Bank of Baroda is governed through "Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970" i.e. the Act, meaning thereby the provision of the Companies Act, 1956/2013 in this regard are Not Applicable. All the Directors, except 3 directors elected amongst the Shareholders' other than Central Government pursuant to Section 9(3)(i) of the Act, are appointed / Nominated by Government of India pursuant to the provisions under Section 9(3) of the Act. The Bank is regulated by Reserve Bank of India. Major time of the Board discussions is spent on business strategy and execution, compliance, governance and profile of the Bank. Transparency and independence in functioning of the Board is ensured. Board Evaluation With the objective to continuously improve Board governance, an evaluation of the Board’s performance; performance of its committees and individual directors including independent directors is being conducted by an external consulting firm. The parameters of evaluation have been aligned with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and new SEBI Guidance Note on Board Evaluation dated January 5, 2017. 18 kØ àj¦d¢Ü×¦ vÖzj¦|zj¦ vj¦Ûk}ÛØj¦lu|i ej¦ zã¥j¦ÛØ¥ ãØÛ^¥ Audit Committee àj¦j¦z|z¥|d{ØÎØÛÎq|j¦d|}|j¦lÎ The composition & terms of reference of the Audit Committee of the Board of Bank of Baroda is governed through RBI’s directives / guidelines, which are complied with. 19 | j¦|i }Øj¦ àj¦«zdldlØ£| j¦|Øi }j¦ØÎq|j¦Û o|i zã¥Ø¥ Ø ¨¦¡ãØj¦ãØÛ^¥ àj¦j¦|z¥|d{ØÎØÛÎ Nomination and The Bank has 2 separate committees namely Nomination Committee and Remuneration remuneration Committee, the composition and terms of reference of which are governed through RBI committee / GOI directives respectively.

89 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

|¨¦ }Ø d|}|yØ Regu Title / Brief description Compliance Status No. 20 ÎØ{j¦ {Ø d|}|j¦lÎ Stakeholders Complied with Relationship Committee 21 qk}° {|Ø d|}|j¦lÎ Risk Management Complied with Committee 22 Øj¥¦Ø}°Û d|}|j¦lÎ Vigil Mechanism Complied with 23 {Ø}tÛ¥|z| d|}|j¦lÎ Related party Complied with transactions 24 oÛ ·ej¦e«j¦Û d|}|j¦lÎ d| l j¦ij¦¢}¥t Complied with l|Õj¦Ûdj¦Ø Corporate governance requirements with respect to subsidiary of listed entity 25 Ø |zj¦«j¦ {« |j¦d|yf}¥§Ø zØ As per Regulation 17, as above. Obligations with respect to independent directors 26 |zj¦i u}° {| d|}|j¦lÎ j¦ {«zØ Complied with Obligations with respect to directors and senior management 27 d|j¦¢}¥tl|Õ d|}|j¦lÎ dj¦Øi Complied with Other corporate governance requirements et d|}|j¦lÎ Website Complied with ä Ùj§ ¬j§dä ÙÜj§Ùj§ }ij§d} |¢ DEMATERIALIZATION OF PHYSICAL HOLDINGS – A SPECIAL REQUEST: Û|d}|Û}°}Ø kz|j¦j¦qiÎ SEBI vide its Press Release No. 12/2019 dated 27.03.2019 has |¥Îj¦ }°}|¥y}|j¦âvÖj¦}°ØãØ«j¦ decided that except in case of transmission or transposition of d Øj¦|j¦id|{Ø Øj¦Ûj¦Ø|ÎÛ j¦iqi lq Øj¦j¦ securities, requests for effecting transfer of securities shall not j¦Ûv}¢qtÛj¦yf|Î«vt}«{Ø|Î«qj¦ be processed unless the securities are held in dematerialized form with a depository w.e.f. 01.04.2019. Hence, we request the }°ãÛÎldØ¡Î{j¦«d|{j¦ØÎàj¦Ø Ød}| shareholders to kindly Demat their physical holding immediately. ãØj¦«j¦vtj¦« For dematerialization, shareholders may contact their respective vtj¦|j¦i{j¦d}| {Øv}¢qtÛ}°ØãlÛ }j¥¦ Depository Participant, where they maintain their respective j¦«qÎ f|j¦vtkØÎvtj¦|j¦||ãÎà {ÎØ de-mat account. Benefits of dematerialization are as follows: d Ø }°}j¦k|j¦j¦e¥ã|ÎÛ ã j ¦}|Û i) Hassle free transfer ii) No threat of loss of share certificate

90 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

}°}ãj¦Û{dØØj¦kØ«qÎq| | j¦|{ iii) Direct and prompt credit of Dividend / Corporate benefits iv) ii Ûide¥}Ûddzj¦{Û{dz| Nomination facility v) Direct application through ASBA/IPO, etc. Shareholders holding shares in Physical / Demat form and ãØj¦vtj¦}«{Øj¦{j¦q|Î«|d}|e¥de¥vÛ not yet registered their email IDs are requested to register zq¥|ÎÛ j¦Îf|d|{Îj¦ãØj¦j¦}¥ their e-mail ID with RTA of Bank / their respective Depository }Î ll°Û| j¦y¥|«d}|v}¢qtÛ}°ØãlÛ àj¦j¦dtÛi« Participant to support GOI’s green initiatives. d}|e¥de¥vÛzq¥j¦i TRANSPARENCY & COMPLIANCE OFFICER ~ {¦Ùi¡d}~}d|j§ Ü Further, the following additional functions also enhance yÎÛ||kØdØ§Øj¦¥j¦}ãÛ àj¦j¦j¦¢}tl|Õ the Bank’s commitment to more and more disclosures and compliance under the Corporate Governance mechanism of }°Ûj¦ØÎØd{j¦d{j¦}°j¦tÛj¦j¦i àj¦j¦Û}°Ø ·Ø the Bank. j¦z¥Ø«Îà Transparency Officer ~ {¦Ùd|j§ Ü In Compliance with the directions of Central Information j«¦®Ûo|d§Ø Ûde¥Û j¦z|z¥«j¦d|}|}Ü¦Û Commissioner (CIC), the Bank has appointed one of the Senior àj¦|d}|ij¦ud{j¦Ûj¦}z¥Ød{j¦Ûj¦} Officers as Transparency Officer, since February 2011. «|§Øj¦Î The transparency officer is responsible for the following }z¥Ød{j¦Û||kØj¦¥j¦}«j¦ifÏze¥Î¡ functions: a) To oversee the implementation of Section 4 of Right to i o|j¦d{j¦d{| dtÛde¥ j¦Û{q¥q|j¦ Information (RTI) Act detailing with obligations of public }°{j¦«j¦zØ {ØÎj¦¨¦||j¦Û|l|Ûj¦| authorities and to apprise the top management of its Øyej¦Û}°lØfoo}° {|j¦dlØj¦| progress. Û o|j¦d{j¦d{|j¦j¦¥||j¦Û}°lØj¦ {« b) To be the interface for the Central Information Commissioner (CIC) regarding the progress in implementation of the RTI Ûde¥Ûj¦ye tÜ¦j¦}«j¦¥j¦| Act. Û j«¦®Ûq|o|d{j¦Û Û}Ûde¥d |zÛ}Ûde¥d¸ c) To help promote congenial conditions for positive and timely dtÛde¥d|{«}j¦Øj¦i ·j¦¥e¥j¦i response to RTI requests by Central Public Information d|j¦}Øj¦|«zzj¦| Officers (CPIS), deemed CPIOs. vÛ× dtÛde¥ {ØãÛ«j¦idq|j¦i }j¥¦j«¦®j¦ d) To be a contact point for the public in all RTI- related }«j¦¥j¦| matters. The Bank has uploaded all the required information as required àj¦|ed{|«j¦|z¥|d}|Û et}|{¥Ø}°}« by the Act in the specified format/s on Bank’s website and d}Øo|d}vj¦Îq}dµØ|j¦qØÎ information is updated from time to time. d}~}¡¡|Üj§¦ Compliance Function àj¦«d|}| {Ûj¦¥j¦}¥tl|Õj¦«ij¦ÎØ}¥j¦¥ Compliance function in the Bank is one of the key elements in its Î àj¦«ej¦¥j¦}¥}Ø}o |lÎdeØ Ø corporate governance structure. The compliance function in the Bank is adequately enabled and made sufficiently independent. zÛle¥Î|zj¦ v àj¦j¦d|}|qkj¦}° {|}|l|Û The Board of Directors of the Bank oversees the management kØÎ àj¦|d|}| {Ûj¦Õj¦}tj¦ØÎid|}||ÛØ of the Bank’s compliance risk. The Bank has put in place a |zj¦ v¸d|zØj¦j¦ij¦}°ãÛd¨¦d|}| robust compliance system including a well-documented and }°Ûlj¦Î Board approved Compliance Policy outlining the Compliance philosophy of the Bank. d|}|j¦¥ã||d{|«dy¥Ø¤ àj ¦l||d{| The Compliance Function ensures strict observance of all ãØÛ^¥ àj¦d{|zÛ®}° {|d{|ãØÛ}°ØãØ statutory provisions contained in various legislations such as i | v¥d{|Øy{|{||j¦d{|j¦ {j¦ Banking Regulation Act, Reserve Bank of India Act, Foreign Exchange Management Act, Securities and Exchange Board of }°{|«j¦yy}qÛd||j¦z|z¥«j¦ India Act and Prevention of Money Laundering Act etc. as well d|}||ÅØj¦ØÎz««qÎ } àj¦j¦j¦¥ki as ensures observance of other regulatory guidelines issued yØÎàÎ }ãÛ àj¦Î j¦ã|||j¦}°{j¦«¸qÛ from time to time. Bank also ensures adherence to regulations |«j¦d|}||ÅØj¦ØÎ àj¦ãØÛ àj ¦l ÎØd of various Regulatory Authorities where the Bank is having its Offices/ Branches at overseas Centers. The bank is a member |j¦ v¥j¦zÎd ÛÛi Ûde¥¸|{¥Ø|j¦«d of Banking Codes and Standard Board of India and ensures ÎØj¦d|}||ÅØj¦ØÎyÎÛ àj¦de¥ Ûi ãØÛ compliance of Standards and Codes prescribed by BCSBI. àj¦ m Ü¦ve¥ ãØÛzÛ®}Û m ØyÜ¦v ãØÛ It also ensures adherence of various guidelines/instructions issued by IBA (Indian Banks Association), FEDAI (Foreign |Ød® qdØ}||Û m ¸qÛz|z¥«d|z« Exchange Dealers Association of India), FIMMDA (Fixed Income j¦d|}|ãÛ|ÅØj¦ØÎ Money Market and Derivatives Association of India).

91 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

d}¡| ANNEXURE 1 }{j§vj§lu} COMPOSITION OF THE BOARD Dr. Hasmukh Adhia - Chairman (Non-Executive) v¢Îkdcd{ lj¦¥}j¦ (DoB: 3rd November, 1958) q|Øy¡| Dr. Hasmukh Adhia was appointed as Non-Executive Chairman by the Central Grovernmant u/s 9(3)(h) of The Banking v¢ÎkdcÖj¦ãØj¦| àj¦j¦Ûj ¦}|Û f}¨¦«j¦dq¥| Companies (Acquisition and Transfer of Undertakings) Act, i d Ø d{|j¦Û{ io j¦ØÎØlj¦¥}j¦ 1970, w.e.f. 01.03.2019, for a period of 3 years or until further d{j¦}«z| j¦Õj¦Ûd{dldz orders, whichever is earlier. Dr. Hasmukh Adhia, an officer of Indian Administrative Service, Øj¦e|«qãÛ}ÎÎj¦i|§Øj¦Î retired on 30.11.2018 as Union Finance Secretary & Revenue v¢ÎkdcÖãØÛ}°|j¦j¦d{j¦ÛÎàqãØj¦ Secretary in Government of India. He is also the Chancellor of Central University of Gujarat. He also serves as a member j¦j¦|®ÛÏoi qoj¦}«j¦|Ï of Board of Governors of Indian Institute of Management, ÎilqØj¦|®ÛÇµj¦j¦}ØãÛÎàe v|e tot Bangaluru. d¢Ü×¦|q«t «lj¦ v¥d¢Ü×¦l|¥j¦zãÛÎà Dr. Hasmukh Adhia has Post-Graduate degree in Accountancy. He is a Gold medalist from Indian Institute of Management, d}|ij¦f tàÛ«|Øj¦Ïvl°Û}°}Øj¦ÛÎe v|e totd¢Ü×¦ Bangalore and holds a Ph.D. in Yoga from Swami Vivekanand |q«t «l¥}zj¦}°}Øj¦ÎdyÎÛÛj¦| z Yoga University, Bangalore. lÇµ «ll«}ÛiovÛj¦Ûf}{ÛãÛ}°}Øj¦ÛÎ Prior to his posting as Finance Secretary, he was Secretary, Department of Financial Services, Ministry of Finance, Ïo ||}Î| dlØj¦z|ãØ Government of India for the period from November, 2014 j¦Ï ÏÛi ãlj¦oyoÏÛ till August, 2015. As Secretary, Financial Services, he was credited with many new strategies for banking reforms such i j¦}«e|Î«j¦e¥|ij¦¥|ÛØ lj¦|j¦}°}ØÎqj¦ as Gyan Sangam and Indradhanush as well as social security àj ¦l{j¦i| le ®{|j¦¥¨¦dyÎÛqj¦ schemes of Pradhan Mantri Suraksha Bima Yojna, Jivan Jyoti q|i }°{| Û Ûq|qÛ|qØ Ûq| Bima Yojna and Atal Pension Yojna, as also for the scheme of micro-financing of Mudra. ddt}«|q|dmhj¦i®q| As Finance/Revenue Secretary, he was credited with bringing Ïqoj¦}«f|Î«dj¦fØ}zj¦i j¦«j¦ in many tax-friendly initiatives in the Income-Tax as well as d|j¦}Îj¦|j¦}°}ØÎyÎÛf|Î«|{ØqÛitÛl Excise Duty and Service Tax. Also he pursued the agenda of GST systematically as a result of which GST was implemented j¦|j¦j¦¥ o|ãÛj¦qqÛitÛo}lÎj¦Û smoothly. He is also known for his relentless drive against the f|Î«j¦{|j¦kÜ¦| Ø}°ØÎ|j¦iãÛq|qØÎ black money. Prior to posting in the Ministry of Finance, some of the other Ï «Ø|ØÛ}Îf|Î«|j¦e¥d|}z ãqj¦lqØ positions held by him include Principal Secretary to Chief j¦k Ûj¦}°{|o }°{|o lqØ Minister of Gujarat (2003-06), Principal Secretary (Education), dØ§Øko Ï lqØ fµld§Ø Gujarat (2008-13), Additional Chief Secretary (Finance), Gujarat (2013-14), Industries Commissioner, Gujarat (2001-02), lqØ lqØdµlj¦||ldlqØdµlj¦ Managing Director of Gujarat Industrial Investment Corporation j¦|lj¦}° {|zj¦ and Gujarat Industrial Development Corporation. Û}Ûiqj¦}° {|zj¦i kj¦¥}j¦d{j¦Û Shri P. S. Jayakumar - Managing Director & CEO (Executive) j¦¥}j¦ (DoB: 8th April, 1962) q|Øyd}° Shri P. S. Jayakumar was appointed as Whole Time Director designated as Managing Director & CEO by the Central Û}Ûiqj¦j¦Û|§ØãØj¦¸ àj¦j¦Ûj ¦}|Û Government u/s 9(3)(a) of The Banking Companies (Acquisition f}¨¦«j¦dq¥|i d Ø d{|j¦Û{ i j¦ØÎØ and Transfer of Undertakings) Act, 1970, w.e.f. 13.10.2015 for }¥j¦j¦|zj¦j¦}«}° {|zj¦i kj¦¥}j¦d{j¦Û a period of 3 years or until further orders, whichever is earlier. j¦}z}«Õj¦Ûd{dldzØj¦e|« Tenure of Shri P. S. Jayakumar as MD & CEO has been further qãÛ}ÎÎj¦ij¦le¥ÎÛ}Ûiqj¦j¦}° {|zj¦i extended by GOI upto 12.10.2019, or until further orders kj¦¥}j¦d{j¦Ûj¦}«j¦¥j¦j¦ãØj¦|z| j¦ whichever is earlier. dldz«Øj¦qãÛ}ÎÎ cÖzÎ He is a Chartered Accountant by qualification and additionally j¦lØ«|zÛkj¦ÎàyÎÛf|Î«|i§idde¥ holds a Post Graduate Diploma in Business Management qz} q||q«t«}tl°qitv}ãÛj¦Îf|Î« from XLRI Jamshedpur. He also has the distinction of being z|j¦d¢Ü×¦ej¦¢|§iv}¢tj¦eÕj¦{o| l a Chevening Gurukool Scholar through the London School of lj¦j¦¢Î|j¦|ãÛ}°}ØÎ Economics and Political Science. d§Ø « àj¦d¢Ü×¦ vÖz«}° {|zj¦i kj¦¥}j¦ Prior to his appointment as MD & CEO of Bank of Baroda in

92 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19 d{j¦Ûj¦}zãl°Îj¦|}Îd}Û ÛioÛ qtÎf l October 2015, he was the co-founder and CEO of VBHC Value Û ÛioÛ qØj¦d}i {dl¥j¦iÎf l Homes Pvt Ltd, a leader in housing for low and moderate income «dl°ÛÎÎj¦Î y}j¦i kj¦¥}j¦d{j¦Ûyd} household from 2009 to 2015. He was also the co-founder tÐÛd àj¦¸| ØÎf lÜ¦| yÎÜ¦t¥Ü¦e|« and Non-Executive Promoter Director for Home First Finance j ¦}|Û ioiÜ¦iÜ¦Û j¦Î y}j¦Øylj¦¥}j¦}°Ø¥j¦|zj¦ Company (HFFC), a housing finance institution regulated by ãÛyÎj ¦}|Û àj ¦l {j¦¸h|«dy¥Îl°Îj¦«j¦ the NHB, focused on financing customers who are not able to Ï}j¦|}{|zØÛÎd}ij¦} àj¦Îàdd}| access mortgage loans from the banking sector. Shri Jayakumar «j¦j¦|j¦ zãØd l}«tÛ àj¦«Õ is a career banker having spent over 23 years in Citibank in d{j¦Øj¦j¦¥j¦Îd}|ãØ«t àj ¦lj¦«d|j¦ India and Singapore starting in 1986. He has contributed to ||Ûj¦Õj¦Û¦dØ«lz|zÎej¦dØ§Ød}« several innovations in retail banking in India. In addition, he ãØ«}°ydØ}°ØãØÛj¦Øy«ÏÛ| oØ was associated with the first asset securitisation in India in l¥j¦i}°y ÎãÛ tÐj¦itÛiy}Øj¦| {Û}°« 1991 and the first multi-lingual biometric ATM for the financially qvÖÎÎàtÛ àj¦«f|Î«|tÐ^f}ã§Ø àj¦qi dl° excluded in 2006. He held diverse assignments at Citibank such j¦j¦ØÎij¦}°ktÛÜ¦|« as Treasurer - Consumer Bank, Business Development Head j¦}° {|zj¦i}ÛÜ¦j¦z« e v|Ü¦} d¢tÐ covering deposit and lending business, Managing Director Î lj¦ li j¦ j¦itÛ àj¦f}ã§Øh}°k}°ktÛ for CitiFinancial Ltd, Managing Director and Head of Citibank àj¦f}ã§ØØyØ|}}° {|}°ki}Ü¦j¦q Consumer Loan for Asia Pacific Countries (covering Indonesia, {j¦¥j¦}«j¦ ãf|Î«|ãØ«tÛ àj¦j¦Ûj¦e¥d| l« Philippines, Australia, Hong Kong and Korea), Country Head «|zj¦ vj¦zj¦}«ãÛi zÛÎà - Citibank Consumer Business and Head of Balance Sheet ÛØÛ}}|l}Øj¦¥}j¦|zj¦ Management - Asia Pacific. He has also served as a Board Member in many of Citibank’s subsidiaries in India. q|Øy¡Ø Smt. Papia Sengupta - Executive Director ÛØÛ|l}Øj¦Û|§ØãØj¦¸ àj¦j¦Ûj ¦}|Û f}¨¦«j¦ (DoB: 27th September, 1959) dq¥|i d Ø d{|j¦Û{ i j¦ØÎØ}¥j¦j¦ Smt. Sengupta was appointed as Whole Time Director |zj¦ j¦¥}j¦|zj¦j¦}z} j¦}«d}|Û (designated as Executive Director) w.e.f. 01.01.2017 by the d{¥Ø}Ûj¦|j¦ÛØÛkdy¥Ø¤Øj¦dldz Central Government u/s 9(3)(a) of The Banking Companies Øj¦e|«qãÛ}ÎÎØ Øj¦j¦ij¦Ûle¥Î (Acquisition and Transfer of Undertakings) Act, 1970, for a d}j¦|«|Øj¦j¦yyÛiÜ¦idÛide¥de¥ Ûj¦Û period upto 30.09.2019 i.e. the date of her attaining the age dØ§ØlØãÛ}°}ØÎàd}|«i Û Ûq«}Û{Û| of superannuation or until further orders, whichever is earlier d{j¦Ûj¦}«qe|j¦di Û Ûqi Ûde¥di Û}Ûj¦ She is a Science Graduate, with additional qualification of CFA ã||j¦¥««qz«j¦|¥Îj¦ÎÎ àj¦«qe|j¦| and CAIIB. She joined SBBJ in 1983 as Probationary Officer }Îd}|tt àj¦d¢Ü×¦}t i Û}Û «d}°Øj¦k and has handled responsibilities in several offices of SBBJ, SBI Î}° {j¦ t àj ¦l dq|Øj¦kÎ}° {j¦ z l°Ø and SBP. Prior to joining Bank of Baroda, she held the position of Chief General Manager (Retail Banking) since April 2016 dØ}° {|Î j¦}zã ãd}|tt àj¦d¢Ü×¦ Ûj¦|d and Chief General Manager (Stressed Assets Management q} i Û Ûq j¦zÛ|tj¥¦«Î}° {j¦j¦}«ãÛj¦¥j¦ Group) since June 2015 at State Bank of Patiala (SBP). She Îd}|j¦¥j¦j¦z|d}|ã|| lu|«j¦ã||}°k« also served as General Manager of the Delhi network at State qde¥tÛiiiiodtÐqÛ}° {|dz«j¦¥j¦Î Bank of Bikaner and Jaipur (SBBJ). During her tenure at the d}|zzj¦«d{j¦Øj¦k}o|j¦j¦¥ã ã various organisations she had worked across various key areas Îi d}j¦¨¦vtØyzÛ®}o|«ãÛ}j¦d|ãÎ such as IT Security, ALM, HR, Treasury Management etc. She also has handled branch operations for more than two decades Û Øq|j¦¥}j¦|zj¦ and has experience in Credit and Forex operations. q|Øy¡q|Û Shri Shanti Lal Jain – Executive Director Û Øq|j¦Û|§ØãØj¦¸ àj¦j¦Ûj ¦}|Û f}¨¦« (DoB: 1st January, 1965) j¦dq¥|i d Ø d{|j¦Û{ i j¦ØÎØ}¥j¦j¦ Shri Jain was appointed as a Whole Time Director (designated |zj¦ j¦¥}j¦|zj¦j¦}z} j¦}«d}| as Executive Director) w.e.f. 20.09.2018 by the Central j¦¥ãl°Îj¦|j¦ÛØÛkØÛ|¥j¦Ûd{j¦idldz Government u/s 9 (3) (a) of The Banking Companies (Acquisition Øj¦e|«qãÛ}ÎÎØ Øj¦j¦ij¦Ûle¥Î and Transfer of Undertakings) Act, 1970, for a period of three Û Øq|q«|Øj¦ÏÎ|j¦yÎÛot¥v¥dj¦f t«t years with effect from the date of assumption of office, or until j ¦}|ÛodÛide¥de¥ Ûj¦Ûj¦lØ}°}ØÎàeÎ z further orders, whichever is earlier. àj¦qe|j¦|}¥d}|lãl¥ã||fµl««j¦¥j¦ Shri Shanti Lal Jain is a Post Graduate in Commerce, with Professional Qualification of Chartered Accountant, Company Îd}|eÎ z àj¦««{}° {|ÛØ||,,«qe| Secretary and CAIIB. Prior to joining Allahabad Bank, he worked j¦dÎ}° {j¦}zØj¦}Îo«d}|kd«d oj¦¥Ü¦Ûv in various Industries for about 6 years. He joined Allahabad Bank Î}° {j¦j¦¥tÜ¦Îµd}°{|j¦¥«j¦¥j¦ in 1993 in Middle Management Grade/Scale-II and reached upto Îd}|eÎ z àj¦«d o}° {j¦dld oj¦}«ãÛj¦¥ General Manager. He worked in Branches, Zonal Office, Field j¦ÎdyÎÛ àj¦j¦kÏÛd{j¦Ûkqkd{j¦Û General Manager Office, Staff College and Head Office. He also

93 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 dÎ}° {j¦de¥tÛj¦zØãÛ ãÎ worked as Zonal Manager, Agra Zone in Allahabad Bank. He Î àj¦ qe|j¦|}¥}â¤ij¦¥d} e¥«Ü¦Ûv also worked as Chief Financial Officer, Chief Risk Officer and Î}° {j¦ }Å j¦}z}j¦¥ØydeÎ z àj¦j¦ÎtÐ General Manager-IT of the Allahabad Bank. lqØdl}o|j¦ÛqzÛ ãÎiy Prior to joining our Bank, since last one year he held the position Û¨¦zØ ÎkÛoÛj¦¥}j¦|zj¦ of Field General Manager (West) at Mumbai and responsible for Maharashtra, Gujarat and Goa Operations of Allahabad Bank. q|Øy¡qe¥ Shri Vikramaditya Singh Khichi – Executive Director ÛkÛoÛj¦Û|§ØãØj¦¸ àj¦j¦Ûj ¦}|Û f}¨¦«j¦dq¥| (DoB: 24th July, 1962) i d Ø d{|j¦Û{ i j¦ØÎØ}¥j¦j¦|zj¦ Shri Khichi was appointed as a Whole Time Director (designated j¦¥}j¦|zj¦j¦}z} j¦}«j¦d}|j¦¥ã as Executive Director ) w.e.f. 01.10.2018 by the Central l°Îj¦|j¦ÛØÛkØÛ|¥j¦Ûd{j¦idldzØj¦ Government u/s 9(3)(a) of The Banking Companies (Acquisition e|«qãÛ}ÎÎØ Øj¦j¦ij¦Ûle¥Î and Transfer of Undertakings) Act, 1970, for a period of three ÛÛikÛoÛ|i Ûi Ïi j¥¦t l j¦ÎyÎÛf|Î«| years with effect from the date of assumption of office on 1st Ûide¥de¥ ÛdqÛ| Û«itj¦Ûj¦lØãÛ October, 2018, or until further orders, whichever is earlier. Îj¦ÛÎ àj¦d¢Ü×¦ vÖz«d|j¦}¥z| àj¦«ÛÎ}° {j¦ Shri V. S. Khichi is an MBA (Finance and Marketing), with Professional Qualifications of CAIIB and Associate in Life lqØ}o| j¦}z}j¦¥Øyz| àj¦«f|Î«|z Insurance. Prior to joining Bank of Baroda, he was working as «}° |Ûd{j¦Ûj¦}«qe|j¦ã||qz«j¦ Field General Manager (Gujarat Operations) in Dena Bank. Ü¦Ø}¥j¦}j¦ØÎiÎ}° {j¦}zØj¦}z||ØÎide¥ He Joined Dena Bank as Probationary Officer in December' «z| àj¦j¦Ü¦ÛvÎ}° {j¦ lqØ}o| j¦}°ãl°Îj¦ 1985, gradually climbed up the ladder and got promoted as Field General Manager (Gujarat Operations) in May'2015 in }° |Ûd{j¦Ûj¦Î}° {j¦j¦}«ã||j¦¥«i Dena Bank. ãl««d}|ÛÕj¦Ûj¦z|f|Î« àj ¦l}o|j¦ã|| Inculcated blend of operational experience at field level and ««j¦¥j¦|j¦}j¦d|ãÎk}o|j¦yy of planning/policy formulation at Controlling Office during the | j¦j¦¥Ødq|i |ÛØ|¥qÎØ}¥«« tenure of 33 years in Dena Bank by serving in varying capacities ãÛf|j¦dÎlz|ÎÎ from being Probationary Officer to General Manager in various f|Î« àj¦j¦t àj ¦lj¥¦t l |e¥}ÎdfØ}zj¦ oÕt Branches & Departments. àj ¦lÛ}° {|zÛj¦ qÎØ}¥ãl««j¦¥j¦| Acquired enriching experience across the breadth of various j¦lÎ|d|ãÎ key departments such as Retail Banking, Marketing (New Initiative & Product Development), Merchant Banking, Recovery ÛkÛoÛ|qØÛ àj¦¥ØlqØj¦ qj¦j¦}«q Management, Overseas Business Center etc. j¦j¦u}°{j¦«ãØÛ^¥ àj¦ÎØãÛ àj¦« Û Groomed leadership quality while discharging duty as Convenor j ¦}|«i ã|| lu|«j¦foo{j¦«j¦y ÎØØj¦ of State Level Bankers' Committee, Gujarat and collaborated ylqØ«j¦j¦ÛÏÛ| {Ûã||¨¦j¦}«j¦ efforts with senior State Govt. officials, top executives from RBI }j¦|«d}|ã}lz|zÎ and various Banks, Insurances Co. & different organisations in executing numerous Financial Inclusion initiatives of the Govt. Ûz Û} v|zj¦ lj¦¥}j¦ j«¦®j¦j¦}°Ø|{ in Gujarat State. q|Øy¡q|Û Shri Debasish Panda - Director (Non-Executive) - Representing Ûz Û} vãØj¦¸ àj¦j¦Ûj ¦}|Û f}¨¦«j¦dq¥| Central Government i d Ø d{|j¦Û{ Û j¦ØÎØ|zj¦j¦}« (DoB: 5th January 1962) dldzØj¦j¦i|§Øj¦iliÎà Shri Debasish Panda was nominated as a Director w.e.f. d}ãØj¦|dj¦}° {|«|Øj¦ÏÎàd}¥| 05.04.2018 by The Central Government u/s 9 (3) (b) of The Banking Companies (Acquisition and Transfer of Undertakings) «iÜ¦j¦Ûf}{}°}ØÎàd}|iidÜ¦} «j¦}°| Act, 1970 to hold the post until further orders. «zÛ}°}°}Øj¦Î He is a Post Graduate in Physics, Development Management Û} v oj¦}Û l¥j¦de¥iid{j¦ÛÎàdØ¡dv and obtained M.Phil degree in Environmental Science. He has qdØÎàf|Î«|o¥j¦ÏÛi ãl vÛiÜ¦i undergone foreign training in Public Administration from USA «j¦¥l°Îj¦ÏÛi ãl«dØ§Øoj¦}«j¦¥ & Philippines. l°Îj¦|}ÎzÛ«fÏ}°zj¦|Ûd§Øj¦yy Shri Panda is an IAS officer of 1987 batch of UP Cadre and kj¦¥}j¦d{j¦Ûl°t|ivj¦}°{j¦j¦zÎ}°ã belongs to the State of Odisha. He joined the Department of Financial Service (DFS) on 23rd March, 2018. Before joining ãÎyfÏ}°zj¦«j¦e¥ÎØ}¥}z«}dÛ|yq as Additional Secretary in the DFS, he was holding the dual j¦ztÎÛfÏj¦Ûdlq zq«j¦q{j¦Ûd charge of Resident Commissioner of UP in Delhi as well as Chief }°{|o lÎi |}°| f|Î«|ãØj¦«ãÛ §Ø Executive Officer, Greater Noida Development Authority. He o yi }j¦ ddkãØÛd¥| y| held several key posts in the Government of UP, viz. as District Magistrate of Deoria, Tehri, Uttarakashi & Ghaziabad Districts «f}|zj¦ }°| j¦}«ãÛzÛÎ and Principal Secretary (Home & General Admn.). He also served the Government of India in the capacity of Joint Secretary

94 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

Ûdqj¦|zj¦ lj¦¥}j¦ ãØÛ^¥ àj¦j¦}°Ø|{ (Health & FW) and as Deputy Director (Admn.) in AIIMS. q|Øy¡e¥ Ûdqj¦j¦Û|§ØãØj¦¸ àj¦j¦Ûj ¦}|Û f}¨¦« Shri Ajay Kumar - Director (Non-Executive) - Representing Reserve Bank of India j¦dq¥|i d Ø d{|j¦Û{ Û j¦ØÎØ|Ø (DoB: 20th May, 1969) |zj¦j¦}«dldzØj¦j¦ij¦Ûle¥Î Shri Ajay Kumar is nominated as a Director w.e.f. 13.01.2017 by d}|dy¥«|Øj¦Ïd àj ¦l«iij¦Ûvl°Û}°}Øj¦ÛÎ the Central Government u/s 9 (3) (c) of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 to hold the ãØÛ àj ¦l y|j¦}°Øiitz Ûide¥de¥ Û post until further orders. ãÛÎà He has done his Masters in Economics and MS in Banking. He d}|ãØÛ^¥ àj¦««l°Îj¦Ûdd}j¦}® is also a Certified Associate of the Indian Institute of Banking (CAIIB). }° {|l°Ûhi dq|zÛ®}° {|Øy àj ¦l}¥ Shri Ajay Kumar joined RBI in December 1991 and has had a j¦«ã||}z«}j¦¥j¦|j¦Õj¦}j¦d|ãÎ wide experience of 27 years of working in various capacities in d}|iovÛiÜ¦Û àj¦Øyj¦tj¦Î|® àj¦j¦u}¥}° {j¦ the areas of currency management, rural credit and planning, foreign exchange management and banking supervision. He j¦}«ãÛj¦¥j¦Îd}eÎ z àj¦|etv àj¦Øyj¦ has worked as the Senior Supervisory Manager for the HDFC àj¦j¦Û¥j¦}¥Û}°¨¦j¦i}° }|Ûj¦Ø¥d{j¦Û Bank and the Kotak Mahindra Bank. He was also the Principal Inspecting Officer (PIO) for the annual supervisory process of }Ûde¥d ãÛydd}|d}||ØØ«j¦ àj¦j¦Û}j¦dØ the Allahabad Bank, the United Bank of India and the UCO Bank lÏÛãÛj¦ÛyÛd}j¦ãØ«zÛ àj¦«j¦Îj¦Û and also conducted the comprehensive Asset Quality Review |l|Ûj¦ÛqzÛãÛà}ÛlÛzÛ®}° {|j¦« àj¦« of the latter under his stewardship. He was also assigned the responsibility of monitoring the conduct of foreign banks in India. ÎØqk}° {|z|z¥«ØyzÛ}°Ø||ÛØ}k In the area of foreign exchange management, he has been at j¦}°lØj¦|j¦j¦¥ãÛd}j¦ o|j¦d{Û|ÎdÎ}¥« the helm of formulating Risk Management Guidelines for banks and also Foreign Direct Investment Policy Framework. Earlier, l°Û¨¦vtddq|«d}|j¦¥j¦j¦z|d}oÛ he has also served as Nominee Director in four Regional Rural l°Û àj¦««|Ø|zj¦j¦}«ãÛj¦¥ØÎÎàØ¥|«d} Banks during his stint in rural credit and planning. Currently, he ãØÛ^¥ àj¦j¦Û|zj¦j¦}«o¥|e¥zÛ is posted as the Regional Director, Reserve Bank of India at New Delhi since March 2019 and is fulfilling his responsibilities «j¦¥ØÎàd|e¥zÛ«l° àj ¦lc oj¦j¦j¦id}| towards development of the overall banking infrastructure in zØ«j¦|¥Îj¦ÎÎà New Delhi. Ûl}j¦dl°|zj¦ lj¦¥}j¦ |zÛkj¦ Shri Gopal Krishan Agarwal – Director (Non-Executive) – CA Û Category (DoB: 1st June, 1962) q|Øyq| Shri Gopal Krishan Agarwal was nominated as Part-time Non- Ûl}j¦dl°j¦Û|§ØãØj¦¸ àj¦j¦Ûj ¦}|Û official Director w.e.f. 26.07.2016 by the Central Government u/s f}¨¦«j¦dq¥|i d Ø d{|j¦Û{ qÛ j¦ 9(3)(g) of The Banking Companies (Acquisition and Transfer of ØÎØd j¦j¦ld{j¦j¦|zj¦j¦}«|zÛkj¦ Undertakings) Act, 1970, under Chartered Accountant category for a period of three years or until further orders, whichever is j¦ÛÛj¦ØÎØÕj¦Ûd{dldzØj¦ earlier. e|«qãÛ}ÎÎj¦ij¦le¥Î He is a fellow member of the Institute of Chartered Accountant d}e tÛt¤td¢Ü×¦ot¥v¥ij¦f t«td¢Ü×¦e v de¥Ûide¥ j¦ of India (ICAI) and has experience in financial markets and ÎlÛzÎài d}j¦ÏÛ qddy¥j¦««}j¦ economic issues. He is a Member of the Managing Committee of PHD Chamber of Commerce. He is a Govt nominee of the d|ãÎd}}ÛiovÛo d¢Ü×¦j¦¢¥j¦Û}° {|Øj¦zãÛ Central Council of Institute of Company Secretaries of India Îàd}ãØÛj ¦}|Ûo y|j¦Ûj«¦®Û}z de¥Ûide¥ (ICSI) and Independent Director on the Board of North Eastern j¦j¦Û|ØdfÏ}Û¥e§tÐj¦}¢j¦¢}¥| |Û}j¦ j¦ Electric Power Co. (NEEPCO). He is also a member of the Task v¥«Ø |zj¦Îàd}ãØj¦Ï ¸y}Ø Force on Financial Architecture of MSME Sector set up by the iiie¥j¦ÛÏÛ o|}luØj¦¥zj¦ãÛzÎà Ministry of Finance, Government of India. In his previous roles he was member of various committees of ASSOCHAM, Public d}|}¥j¦¥zØ««d}ioj¦Ûã||Ø«e tÛt¤t Finance Committee of the Institute of Chartered Accountant d¢Ü×¦ot¥v¥ij¦f|t«tj¦Û¥q|j¦ÏÛØd Ûj¦Û¸ØÛj¦ (ICAI) and Secondary Market Advisory Committee (SMAC) qÎj¦Ø iiiÛ j¦zyd}|ã||j¦ of SEBI. He has initiated various public welfare projects j¦}q|i d ãj¦ÛÎàyq{j¦|lj¦ oÛqÛ like Jaladhikar, Nagrik Manch, Shree Ji Gausadan and Milk lz|i zl{Îj¦Ûd|z|d}o}«ÏÛ}j¦d« Cooperative Movement among many others. He writes for newspaper, financial journals and has delivered lectures in j¦kØÎài e|«}|«d lu««k| seminars and conferences on these subjects. He is Trustee ãÛzØÎÎàd}zj¦z}°Ûd| {| lu|yv¢kqÛ¥ and Treasurer of Dr Mookherjee Smruti Nyas and India Policy Ø|i e v}¢ÛÜ¦f v| de¥}ÛiÜ¦ j¦|Ûd Foundation (IPF), two premier research organizations in the j¦{Îà country.

95 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

}°Ü¦ qj¦Û¥|zj¦ lj¦¥}j¦ Prof. Biju Varkkey – Director (Non-Executive) nd q|Øy¡z (DoB: 22 December 1965) Prof. Biju Varkkey was nominated as a Part Time Non-official }° qj¦Û¥j¦Û|§ØãØj¦¸ àj¦j¦Ûj ¦}|Û f}¨¦«j¦ director w.e.f. 25.04.2016 by the Central Government u/s 9(3) dq¥|i d Ø d{|j¦Û{ io j¦ØÎØd j¦j¦ (h) and 9(3-A) of The Banking Companies (Acquisition and ld{j¦j¦|zj¦j¦}«Õj¦Ûd{dl Transfer of Undertakings) Act, 1970, for a period of 3 years or dzØj¦e|«qãÛ}ÎÎj¦ij¦Ûle¥Î until further orders, whichever is earlier. He obtained Master’s degree in Human Resource Management d}|ÎØl {ÛÇµ| {|}° {|«tvl°Û}°}Ø from Mahatma Gandhi University, Kerala and Fellow title in j¦ÛdyÎÛi|de¥ Ûi}}° {|«f}{}°}Øj¦ÛÎØ¥| Management from NIBM, Pune. Currently he is faculty member «d}de¥de¥idÎz z«| {|}° {|« j¦zÎà at IIM Ahmedabad with the Human Resource Management. Additionally he heads the e-PGP task force of IIMA, which is ej¦dØ§Ød}de¥de¥iij¦Ûe¥}ÛqÛ}Ûtj¦Ü¦¥j¦}°kÎ mandated to lounge long duration virtual learning programs Îàqde¥de¥i« Ûd{j¦io¥dj¦¥¨¦j¦i from IIMA. d|¥j¦qÎÎd}j¦j¦d|ãfµlÎj¦Øy His professional experience spans across industry, consulting }°k}° {|j¦«j¦ÎÎqj¦z|d}|de¥de¥ik|gd and leading management schools, having taught at IIM ivÛde¥lvÖl «}cÖãÛÎd}| Î}Û y|«qde¥id Lucknow and MDI Gurgaon. He works closely with multilateral organizations like ILO, IOM, UNDP and organizations de¥dii|vÛ}Ûd lu|«qi|de¥tÛe¥idde¥tÛÛj¦ like UNITES and ITUC. His areas of academic interest y|j¦tØj¦¥j¦Îd}j¦Ûj¦o««j¦ include Strategic HR, Change Management, New Public }Ø¥|}° {||j¦}° {||ØØj¦Ü¦¥ÎØ Ø} Management, Leadership Development, HR Architecture for |}z|}° {|d{oÛj¦¥yql {tt¥d} firms, Performance Management & Improvement, Flexible Work places, Employment Relations, Startups and Family Business d}j¦j¦ }Ø¥|Îd}|tÐÛi d Ø¥tÐÛ transformation. He has published in national and international }j¦d««}°j¦|j¦ÎØy }°ØÛj¦«}Îkj¦j¦}« journals and also co-edited books on HRM practices. He }Øj¦ãÛkÛÎd}|lÛv^j¦yÎkj¦j¦}«C| coauthored text book `Human Resource Management’ along {|}° {| }Øj¦ãÛkÛÎiv¥| lj¦tvÛÎØd}| with Gary Dessler. He has authored more than 30 case studies and technical notes, including award winning case study. He d{j¦j¦tvÛi Øj¦|Ûj¦Û|tkÎàd}«t}Ût¥j¦ is also a member of the board of trustees of St Peters School, } olÛj¦|Û vdiÛiitÛj¦j¦ØØj¦z Panchgani and member of governing council of MCMAT, Kerala. ãÛÎàd}|||iodvÛ|tj¥¦zÛd{ j¦Ûj¦ He has served as nominated member in the Core Committee Øj¦|Øzj¦}«j¦¥j¦Îe v liod| of the National HRD Network – Delhi Chapter (1998-1999), organizing committee for India Young HR Conference, Chair of ÎØØi|de¥}Ûij¦j¦¥j¦iodj¦ §ÎØØj¦|Ûj¦Û Technical Committee for Annual HR Conclave of NIPM Kerala Øj¦Ûo dqØj¦ÛÎØyãØÛj¦}° {|Ü¦ (2015) and was member of the founding governing body of the j¦ y}j¦Øej¦e¥j¦zãÛÎÎà Strategic Management Forum of India. ÛãØj¦vÛv l|zj¦ lj¦¥}j¦ Shri Bharatkumar D. Dangar - Director (Non-Executive) - {j¦|zj¦ Shareholder Director th q|Øy¡Ø (DoB: 18 September, 1978) Shri Bharatkumar D. Dangar is an elected Shareholder Director ÛãØj¦vÛv lj¦ àj¦j¦Ûj ¦}|Û d{l°Îi f}¨¦«j¦ under section 9 (3)(i) of The Banking Companies (Acquisition dq¥| d{|j¦Û{ L j¦ØÎØ and Transfer of Undertakings) Act, 1970, for a period of 3 years Øj¦¥j¦Ûd{j¦i{j¦|zj¦j¦}«|¥oØj¦Î from 24.12.2017 to 23.12.2020. d}j¦Ûj¦lØd««µØdã j¦Û«vt §|ÎØ|Øj¦ His education accomplishments include Electrical Engineering with distinction and Masters in Engineering with specialization de¨¦}°tdi}j¦|«Øj¦ydã j¦Û in Microprocessor systems and application. He currently serves «tvl°ÛÎØ¥|«d}ii|¥tÛd¢Ü×¦ vÖz as Assistant Professor in Faculty of Technology and Engineering j¦Øj¦|Ûj¦Ûi dã j¦Û j¦«dt«t}°Ü¦j¦}«Ø of M.S. University, Baroda. He brings with him a rich experience Îàd}j¦ã||j¦}¥tdiie¥«i§}^j¦yj¦ in fields of Academics, Operations, Management, Accountancy and Human Resource with exposure to various Corporates and }o|}° {|kd| {|j¦««}j¦d|ã SMEs. He is well versed with various farmers’ issues including }°}ØÎd}Ï}Ü¦ Ûh{d«dzj¦yj¦|« financing, crop insurance, credit facilities etc. He has raised j¦ã||´«doâÛØÎj¦Ü×¦Îàd}j¦j¦ã||Ø« issues of farming community and Industry at various levels }j¦|«i fµlqlØj¦ã||´«j¦fuØÎÎàq {Ø of Government which resulted into many improvements in respective fields. He is quite active in issues related to welfare «fk|Û{ÎiÎàd}qj¦j¦j¦ã||« of society at large. j¦yj¦Ü¦Û¨¦ØqvÖÎÎà

96 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

ÛØÛàzj¦|zj¦ lj¦¥}j¦ Smt. Soundara Kumar - Director (Non-Executive) - Shareholder {j¦|zj¦ Director th q|Øy¡dlØ (DoB: 15 August, 1954) Smt. Soundara Kumar is an elected Shareholder Director under ÛØÛàzj¦j¦o| àj¦j¦Ûj ¦}|Û d{l°Îi f}¨¦«j¦ section 9 (3)(i) of The Banking Companies (Acquisition and dq¥| d{|j¦Û{ L j¦ØÎØ Transfer of Undertakings) Act, 1970, for a period of 3 years Øj¦¥j¦Ûd{j¦i{j¦|zj¦j¦¦}«j¦lÎ from 24.12.2017 to 23.12.2020. d}|tj¦¢qo||e¥lØ«|Øj¦j¦Îd}| She has done her graduation in Mathematics from Stella Maris Ûide¥de¥ ÛãÛj¦Îf|Î«|«ãØÛtt àj¦«}Û{Û| College, Chennai. She is also CAIIB. She joined State Bank d{j¦Ûj¦}«j¦¥ãl°Îj¦d«d}|Û|ÏØj¦ of India as a Probationary Officer in 1975 and continued till j¦¥ØÎÛed{j¦z|f|Î«|iie¥tdj¦i her retirement in 2014. During this period she held various l°Û ÏÛ| kd«j¦k}°kÎØã||}z«} assignments including heading branches, SME, Retail and j¦¥j¦d}Øo}Û« àj¦j¦}°}°j¦|®« j¦ Rural & Agriculture (Financial Inclusion). She was also a faculty member in the Bank’s Training Centre, at Tiruchirapalli; Regional zj¦}«o||j¥¦«Û}°kj¦}z}ue}°v«t Manager, Chennai Circle; Senior Vice President, Artesia branch, dt¥kj¦Ü¦|¥i z«}°v«ttt àj¦d¢Ü¦e v California US; later as President State Bank of India (California) j¦Ü¦|¥ i àj¦j¦¢i qiq«Ûj¦Ûe¥dj¦}«j¦¥Ø and CEO of the Los Angeles Agency of the Bank. She was ÎÛÎàd}d§Ø àj¦j¦ÎlÛtt àj¦d¢Ü¦e zj¦Û}° { Managing Director of the State Bank of Indore from October, |zj¦ãÛÎÛ qÎ f|Î«|«ej¦Ü¦Ø}¥j¦ àj¦« 2008, where she successfully steered the merger of the Bank j¦¥«d}|Û|ØØj¦d} àj¦j¦j¦¢}¥tj¦¥ with the Parent Bank in 2010. She held the position of Dy. e¥«z l°ØdØ}° {|j¦}°ãÛj¦}«f}}° {|zj¦j¦ Managing Director, in charge of Stressed Assets Management, }z}j¦¥ØÎÛ in SBI till her retirement in 2014. d}|Õd{j¦j¦Ûd{j¦ii Ûde¥j¦Î àj ¦l¨¦vt She has also headed Wholesale Banking Credit Committee Øj¦Ûd{ØãÛj¦ÛÎi j¦}¥t«t|Øi ¨¦vt of SBI for over -3- years and was a permanent member of Corporate Centre Investment Committee and Credit Policies |ÛØ}°¨¦Øj¦ÛãÛyÛzÎÛÎàd}|ÏÛ| and Procedures Committee. She served as member of RBI ÎØj¦ }°Ø|{ ÛÛ ¢vj¦g}fu|ÎØf}Ü¦ Working Group to recommend measures for scaling up the j¦|j¦iãØÛ^¥ àj¦j¦¥j¦ÛÎj¦zj¦}«ãÛ Business Correspondent (BC) model for Financial Inclusion. j¦¥j¦Îd}ãØÛ^¥ àj¦¸y}Øj¦}¥th}|l¥u| She was also a member of Core Group of Corporate Debt Ø j¦j¦Îj¦ÛãÛzÎÛÎàd}|idÛde¥ie¥ Restructuring mechanism set up by RBI. She also served as v Û«oj¦}tdzj¦|zj¦ v«i Ûde¥j¦|Ø|z a nominee director of SBI on the Boards of ARCIL, CERSAI, j¦}«ãÛj¦¥j¦Î SIDBI Venture Capital etc. ÛÛ||Û{|zj¦ lj¦¥}j¦ Shri Srinivasan Sridhar - Director (Non-Executive) - Shareholder Director {j¦|zj¦ (DoB: 3rd May, 1960) q|Øy¡e¥ Shri Srinivasan Sridhar is an elected Shareholder Director ÛÛ||Û{{j¦|zj¦j¦}« àj¦j¦Ûj ¦}|Û under section 9 (3)(i) of The Banking Companies (Acquisition d{l°Îi f}¨¦«j¦dq¥| d{|j¦Û{ L j¦ØÎØ and Transfer of Undertakings) Act, 1970, for a period of 3 years Øj¦¥j¦Ûd{j¦io|li|zj¦ from 12.12.2018 to 11.12.2021. Mr. Sridhar is a B.Com (Hons.) from Delhi University and a Îàd}|zÛÇµ Ûj¦¢ d¢|¥ j¦Îdij¦|zÛ Chartered Accountant. kj¦Îà Mr. Sridhar has been associated with a leading global ÛÛ{ij¦dl°Ûl |q«tj ¦t lÜ¦¥qvÖÎiÎà management consulting firm since 2013. In this role he works e«dl°ÛÏÛj ¦}|«j¦kj¦¥}j¦d{j¦« with CEOs, Boards of Directors and other senior leaders of top |zj¦ vi d|uj¦¥}j¦«j¦y}° {|j¦¥|ÛØ§e t Financial Services companies in the region on topics such as Management Strategy, Client Coverage Models, Product and j¦q¢vfØ}zi Øj¦¥|ÛØØyj¦¢td¢}teq|q Distribution Strategies, Cost Optimization etc. «}j¦¥j¦ØÎà Mr. Sridhar is a financial services expert with over 30 years ÛÛ{j¦zz«ÏÛj¦}«ÕãÛd{j¦ of experience gained internationally and in India. He was with j¦d|ãÎtÛl°}ÕqvÖÎdidÝ¦Ûj¦} Citigroup for 28 years and has worked in 6 countries across j¦z««j¦¥j¦f|Î«|tÛl°}j¦z«j¦Ûe¥dãØj¦ Asia, Africa and Europe. Some of the leadership positions he held with Citigroup included being CEO for three countries, j¦¢}¥t}°kdÝ¦Ûj¦«tÐ q§|d«j¦}°kØy{}Û¥} Corporate Bank Head for India, Transaction Services Head {}¥i dÝ¦Ûj¦« àj ¦lÎ«j¦}°kj¦}«ãÛj¦¥j¦ for Africa and Bank Services Group Head for Central, Eastern ÛÛ{j¦ àj ¦lØyj¦¢}¥t àj ¦l}°v§t|q«tj¦|q«t Europe, Middle East and Africa. Mr. Sridhar brings deep banking

97 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 l|Õi |j¦d|}|j¦«j¦¥j¦|j¦}j¦d|ãÎ experience and track record from around the globe in areas such as Corporate and Investment Banking, Product Management, ÛÛ{ e¥«ÎØÎàØy ¢ÛvÜ¦t ¢i |}°«j¦j¦Û| Risk Management, Governance and Regulatory Compliance. Îà j¦dy¥j¦§ØÛj¦{d« oØl«j¦i Mr. Sridhar lives in Mumbai and is passionate about Bollywood, dyqqj¦j¦Õj¦ij¦¥j¦ØÎà Football and Wildlife. The social causes that he cares about are child welfare, economic empowerment, education and health for the under-privileged.

98 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

d}l}i Annexure – 1A }{j§¡j§d} OTHER DETAILS OF DIRECTORS: yyØ (Position as on 31.03.2019)

|zj¦j¦| àj¦ àj¦j¦Ûf} àj¦j¦d d|j ¦}|«ej¦e«j¦|zj¦v« Name of Director d¢Ü×¦ Ø«« d|j¦}|« dy¥Ø¤ àj¦j¦âvÖj¦ vÖz zØj¦Û yd«« Directorship held in other Companies / entities i.e. j¦{Ø k |zj¦j¦¦}« Other than the Bank « No. of i k j¦Û Membership No. of k in Sub - Membership / No. of Committees of Chairmanship shares the Bank held in Sub - of Committees Bank of the Board in other Companies v¸¢Î¬¸Ÿ¸ºk¸‚¢cÖ¸¸ ©¸›¸ 40©¸›¸ Dr. Hasmukh Adhia Nil NIL Ûœ¸Û‡¬¸q¸¸jº¦Ÿ¸¸ 81500 14 0 ¢ j¦}tj¥¦t¤ Shri P. S. Jayakumar ¢ Ü¦| |tv ¥evÜ¦t¥eÜ¦e «j ¦ àj¦d¢Ü×¦ vÖz j¦ 1. BOB Capital Markets Limited 2. BOB Financial Solutions Limited 3. IndiaFirst Life Insurance Company Ltd. 4. Bank of Baroda (UK) Ltd. ÛŸ¸÷¸Ûœ¸¸¢œ¸¸¸¬¸½›¸l¸ºœ÷¸¸ ©¸›¸ 13 6 àj¦d¢Ü×¦ vÖz Ø| Smt. Papia Sengupta Nil àj¦d¢Ü×¦ vÖz m| z|e vi«j ¦ ¢ j¦}j¥¦t e ve Ý¦v t 1. Bank of Baroda (Botswana) Limited 2. Bank of Baroda (Ghana) Limited 3. The New India Assurance Company Limited 4. BOB Caps Market Limited 5. India Infradebt Limited Û©¸¸¿¢÷¸¥¸¸¥¸q¸›¸ ©¸›¸ 15 0 vÖzl v¥¥q Shri Shanti Lal Jain Nil vÖz|t§|¢qÛ 1. Baroda Global Shared Services Limited 2. Barodasun Technologies Ltd Û¢¨¸¨¦Ÿ¸¸¢z÷¸¢¬¸¿Îk¸Ûo¸Û ©¸›¸ 12 1 e vÜ¦teÜ¦e «j ¦}|Û Shri Vikramaditya Singh Nil vÖzit|q«te v Khichi ¢ Ü¦|«¢| 1. IndiaFirst Life Insurance Company Limited 2. Baroda Asset Management India Limited 3. BOB Financial Solutions Limited Ûz½ ¸¸©¸Û«¸œ¸¸¿v¸ ©¸›¸ 50©¸›¸ Shri Debasish Panda Nil NIL Û‚q¸¸jº¦Ÿ¸¸ ©¸›¸ 40©¸›¸ Shri Ajay Kumar Nil NIL

99 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ûl¸¸½œ¸¸¥¸j¦«¸‚lÏ¨¸¸¥¸ ©¸›¸ 53 }°Ü¦|vtt}° Shri Gopal Krishan Agarwal Nil l lÛdÛ^}° q||¨¦i }° |y¥e¥t|¥e§tÐj¦}¢j¦}¥| q{j¦Ü¦¢f|v| 1. Professional Data System Private Limited 2. Gangotri Overseas Private Limited 3. Genuine Creations Private Limited 4. North Eastern Electric Power Corporation Limited 5. Jaladhikar Foundation Û¢ ¸q¸¨¸§j¦Û¥ ©¸›¸ 63 j¦¢|§tÛide }§t¥}° Prof. Biju Varkkey Nil ÎÛj ¦t l itvÛiÎyj¦ 1. Konnect CSR Impactors Private Limited 2. Husys Consulting Limited 3. Aster DM Healthcare Ûã¸÷¸jº¦Ÿ¸¸vÛv¸¿l¸ 500 6 0 e›t›¸½©¸›¸¥¸‡¿vv¸½Ÿ¸½¬tj¦‚¸ ¸ÛtÐ½©¸›¸¬¸Êt Shri Bharatkumar D. Dangar 1. International and Domestic Arbitration Centre ÛŸ¸÷¸Û¬¸¸àz¸jº¦Ÿ¸¸ 200 7 8 q} Smt. Soundara Kumar Ø|v|^}° ti v}}¥ dj¥¦vÜ¦¥ Øl¥ j¦t ztÐtÛj ¦ z Ûi|}Û} Ü ¦v¥^ 1. Rajapalayam Mills Limited 2. Tamilnadu Newsprint and Papers Limited 3. Orchid Pharma Limited 4. Shanthi Gears 5. Ramco Systems Limited 6. Sundaram Trustee Company Limited 7. Sundaram BNP Paribas Fund Services Limited ÛÛ¢›¸¨¸¸¬¸›¸Û{¸ 500 5 20 dj¦Ü¦|«¥q¢ªt Shri Srinivasan Sridhar e vÜ¦§tÐÛ li Ü¦|«¢|}° ¢ q|Ü¦|¨¦vte v}° e vÛÎÜ¦|}° iÜ¦de¥i|Ûi àj¦q¢q¥ Øj¦}t}° Øit|q«t}° 1. Oracle Financial Services Software Limited 2. India Factoring and Finance Solutions Private Limited 3. Small Business Fincredit India Private Limited 4. Indie Homefin Private Limited 5. FINCA Bank Georgia 6. Vivriti Capital Private Limited 7. Vivriti Asset Management Private Limited

100 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

m DECLARATION

Ü oÜ}{Ùi¡~±j§tÜj§ dj§Ùi¡ }} Declaration of the Managing Director & CEO pursuant to Schedule V – Part (D) of SEBI (Listing Obligations & j§Üd}oÜ9äl vÜ j§d} ~±¡|j§}{j§i¡Üe¦dj§ Disclosure Requirements) Regulations, 2015. m~ It is to declare that all the Board Members and Senior ÎmØj¦qØÎj¦ v¥j¦ãÛz«i àj¦j¦foo}° {| Management Personnel of the Bank have affirmed their j¦¥j¦o¥j¦}ØÎiÏÛ¥ÎØ Û oÛ|zØ compliance of the “Bank of Baroda - Code of Conduct for i }°j¦tÛj¦dj¦Øi ||j¦| j¦d| Directors and Senior Management Personnel” for the Financial Year Ended on 31st March, 2019 in accordance with Regulation CC àj¦d¢Ü×¦ vÖzj¦|zj¦«i foo}° {|j¦¥j¦ÎØ|{¥Ødo 26(3) of SEBI (Listing Obligations & Disclosure Requirements) ÎØ j¦d|}|ÎØo| ·ÎàÎdo ÎØ àj¦j¦Û et Regulations, 2015. The said Code of Conduct has been posted }f} {j¦e¥le¥Î on the Bank’s website.

j¦Ø àj¦d¢Ü×¦ vÖz For Bank of Baroda

~Üiqj§ Ü P. S. Jayakumar }° {|zj¦i kj¦¥}j¦d{j¦Û Managing Director & CEO y|¡ e¥ Place: Mumbai ze¥ Date: 22nd May 2019

101 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ý§£¦¡kid ok~ Ü ~t¦ o¥j¦}ØÏ¥j¦i >j ¦}|Ûd{|j¦Û{ dj ¦}|Û j¦¥j¦«j¦Û|§Øi }j¦ |j¦|ÎØÎØÎi@ )RUP1R05² 6HFUHWDULDO$XGLW5HSRUW )RUWKHÀQDQFLDO\HDUHQGHG0DUFK [Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014] }°Ø To, z The Members BANK OF BARODA áj§d£Ý§v× { We have conducted the secretarial audit of the compliance of applicable statutory Î|l {j¦}°{|«j¦d|}|d àj¦d¢Ü¦ vÖz ej¦ zq àj¦j¦| provisions and the adherence to good corporate practices by Bank of Baroda zã¥Øj¦qil ¸uj¦¢}¥t}·Ø«j¦}|ÎØo¥j¦}ØÏ (hereinafter called the Bank) for the year ended on March 31, 2019. Secretarial ¥j¦iok}Ûj¦e¥yÛok}ÛeØÎj¦Ûle¥yÛj¦ Audit was conducted in a manner that provided us a reasonable basis for evaluating j¦¢}¥tdo« {j¦d|}|«df}Îo«j¦ j¦|j¦iÎ¥ the corporate conducts/statutory compliances and expressing our opinion thereon. d{f} {Îj¦ Based on our veriÀcation of the Bank·s books, papers, minute books, forms and returns Àled and other records maintained by the Bank and also the information àj¦j¦Û Î«j¦lqØ«j¦¥Ï {Ûj¦lqØ«Ü¦¢ÕÜ¦ej¦ilit|Õd àj¦¸k provided by the Bank, its ofÀcers, agents and authori]ed representatives during lid|j¦¢vÕØyok}Ûj¦z| àj¦ej¦d{j¦«iq|t«d}°{j¦Ø the conduct of secretarial audit, we hereby report that in our opinion, the Bank }°Ø|{«¸f} {j¦e¥lÛo|j¦Ø}|j¦d{}ÎiØz¸oØj¦ØÎà has, during the audit period covering the Ànancial year ended on March 31, 2019 (Audit Period) complied with the statutory provisions listed hereunder and also that j¦ÎÛ« àj¦|o¥ k}Ûd{ j¦}ØÏ¥j¦j¦j¦ØÎi the Bank has proper Board-processes and compliance-mechanism in place to the k}Ûd{j¦z|||kØoÛ · {j¦}°{|«j¦d|}|j¦ÎØy àj¦ extent, in the manner and subject to the reporting made hereinafter: j¦}||kØØÛj¦d}tÕlj¦d{Û|foØ v¥}°¨¦dd|}|}°ÛãÛÎ¡ We have examined the books, papers, minute books, forms and returns Àled and Î|o¥j¦}ØÏ¥j¦i àj¦j¦Û Î«j¦lqØ«j¦¥Ï {Ø other records maintained by the Bank for the Ànancial year ended March 31, 2019 j¦lqØ«Ü¦¢ÕÜ¦ej¦ilit|Õd àj¦¸klid|j¦¢vÕj¦Ûq o||kØ according to the provisions of: j¦}°{|«j¦d|j¦ÛÎ¡ (i) The Companies Act, 2013 (the Act) and the rules made thereunder ( to the extent applicable); L j ¦}|Ûd{| d{| de«fkØ|« qÎ Øj¦lÎ (ii) The Securities Contracts (5egulation) Act, 19 (¶SC5A·) and the rules made LL }°ØãØ z || d{| CiÛdi de«fkØ|« thereunder; LLL |}ld{|df«fkØ|«df}j¦||« (iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; LY zÛ®}° {d{|df«}°ØzÛ|«zÛ}°Ø|«d (iv) Foreign Exchange Management Act,1999 and the rules and regulations Áqj¦f{« {ØfkØl|« made thereunder to the extent of Foreign Direct Investment, Overseas Direct Y ãØÛ}°ØãØd| v¥d{| Ûd{| j¦ØÎØ}°ØØ Investment and External Commercial Borrowings; ||kØ|«dz|z¥«¡ (v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (¶SEBI Act·):- iãØÛ}°ØãØd| v¥d{| «j¦ØØj¦dq¥|i d{l°Î a. The Securities and Exchange Board of India (Substantial Acquisition of | Shares and Takeovers) Regulations, 2011; ÛãØÛ}°ØãØd| v¥ ãz}|{ | b. The Securities and Exchange Board of India (Prohibition of Insider Trading) ÛãØÛ}°ØãØd| v¥ } qÛj¦|l¥d}°j¦tÛj¦dj¦Øi Regulations, 2015 | c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 vÛãØÛ}°ØãØd| v¥ d{Øj¦¥oÛã | d. The Securities and Exchange Board of India (Share Based Employee e¥ãØÛ}°ØãØd| v¥ h}°ØãØ«j¦|l¥doÛ| | BeneÀts) Regulations, 201; iÜ¦ãØÛ}°ØãØd| v¥ |l¥j¦|qtÐdd Øiq«t e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 |j ¦}|Ûd{|i §e t«vÛj¦|j¦ zã¥« qÎ Øj¦lÎ f. The Securities and Exchange Board of India (Registrars to an Issue and qÛãØÛ}°ØãØd| v¥ e§tÛ«j¦loÛ| | Share Transfer Agents) Regulations, 1993 regarding the Companies Act k}Ûd{j¦z| àj¦}l|ÎÛ d and dealing with client (to the extent applicable.) ioãØÛ}°ØãØd| v¥ §tÛq|j¦ j¦ k}Û g. The Securities and Exchange Board of India (Delisting of equity shares) Regulations, 2009 (Not applicable to the Bank during the Audit Period); d{j¦z| àj¦}l|ÎÛ and de¥ãØÛ}°ØãØd| v¥ oÛ| {Øi d}°j¦tÛj¦dj¦Øi£ h. The Securities and Exchange Board of India (Buyback of Securities |Øy Regulations, 1998; (Not applicable to the Bank during the Audit Period); YL Î| àj¦dfj¦d{j¦«¸ àj¦j¦ilyd«d|«j¦ØÎØd| i. The Securities and Exchange Board of India (Listing Obligations and d|}|d{|«j¦||«d|«j¦d|}|j¦i àj¦dfj¦d{j¦« Disclosure Requirements) Regulations, 2015; and ¸zili}°Øz|}Çj¦Î (vi) We have relied on the representation made by the Bank and its OfÀcers for systems and mechanism formed by the Bank for compliances under other ÎÎ||Îj¦}° |{||Ø àj¦j¦ilÎ|||kØj¦||« applicable Acts, Laws and Regulations to the Bank. j¦d|}|j¦Î We are of the opinion that the management has complied with the following àj¦j¦Û||d{| Cd{| laws speciÀcally applicable to the Bank: 1) The Banking Regulation Act, 199 (¶the Act·)

102 ˆÅ¸œ¸¸½Ä£½’ Š¸¨¸›¸½ô¬¸ ¹£œ¸¸½’Ä 2018-19 Corporate Governance Report 2018-19

ãØÛ^¥ àj¦d{| 2) The Reserve Bank of India Act, 193 àj¦j¦Ûj ¦}|Û f}¨¦«j¦dq¥|dd Ø d{| 3) The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 tÐÛj¦Ø àj¦ }° {|d{}°{| q| àj¦j¦| Øj¦| ) The Nationalised Banks (Management Miscellaneous Provisions) }°{|Îào j¦ àj¦ zj¦d{|j¦d Ø¥lØluØij¦j¦¢}¥t yÎ Scheme, 1970, being the special provisions governing the Bank, since Î|l||kØ{d«j¦d|}|j¦ÛãÛq oj¦ÛÎ¡ the Bank is a body corporate constituted under the Act of Parliament. We have also examined compliance with applicable clauses of the L ãØÛo y|j¦¸qÛoÛ|j¦ following: LL àj¦¸ ¢ t¢j¦i§o«qtvd||t¢j¦i§o«qd¢Ü×¦e v (i) Secretarial Standards issued by The Institute of Secretaries of tvj¦yj¦loÛ|j¦ lndia. Ûd{j¦z| àj¦|«f}¥§ØfkØdãØ«j¦d{Û|d{||| (ii) The Listing Agreements entered into by the Bank with BSE Limited z|z¥«|j¦«dzj¦}°{|«j¦d|}|j¦Î and the National Stock Exchange of India Limited. During the period under review, the Bank has complied with the provisions of the i Î|}Îj¦d Ûde¥¸ àj ¦l||d{|j¦Û{ L j¦y Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to }uØ{ i Û j¦ØÎØ àj¦d¢Ü¦ vÖz}ªt {Ø}o|| « the following observations. j¦ ·j¦¥||dcÖj¦| {ÛãØÛ^¥ àj¦j¦|z«j¦Ûd||j¦ (a) We have observed that RBI under Section 47(A)(1)(c) read with Section i| }ioÛ| j¦q¥|llÎ 46(4)(i) of the Banking Regulation Act,1949, has imposed a penalty of Rs.40 million (Rupees forty million only) on Bank of Baroda for Û ãØÛ^¥ àj¦¸ àj ¦l||d{|j¦Û{ L j¦y}uØ non-compliance of RBI directives for time bound implementation & { i Û j¦ØÎØ àj¦d¢Ü¦ vÖz}ej¦ij¦f{j¦Ø¥j¦kØj¦Ûq oj¦| strengthening of SWIFT related operational controls. }ãØÛ^¥ àj¦j¦z|z¥«j¦Ûd||j¦i| }iz| (b) Reserve Bank of India under section 47(A)(1)(c) read with section 46(4) j¦q¥|llÎ (i) of the Banking Regulation Act, 1949, has imposed a penalty of Rs. 10 million (Rupees ten million only) on Bank of Baroda for non-compliance ÏÏäÜ ~t¦j§ ÙÏáj§¢ of Reserve Bank of India guidelines on scrutiny of one of its borrower àj¦j¦|zj¦ vj¦¥}j¦|zj¦«lj¦¥}j¦|zj¦«dØ |zj¦«j¦ account. oØ Ø|j¦y{Ø}luØj¦lÎÛ{Û|d{j¦z||zj¦ We further report that: vj¦Û o|«j¦ili zãØj¦j¦Ûd{o|d«dd{|j¦}°{|« The Board of Directors of the Bank is duly constituted with proper balance of j¦d|}|«j¦iliÎà Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the ¥j¦z| àj¦j¦}° {|«||kØ}Ø¥|ÎiÎà¡ period under review were carried out vide Government of India notiÀcations and in d{o| iÜ¦| Ûdde¥j¦{v¢ÎkdcÖj¦Û|§Ø àj¦ compliance with the provisions of the Act. d¢Ü¦ vÖzj¦d j¦j¦lj¦Û|zj¦Øylj¦¥}j¦d{j¦}« During the year following changes took place in the Management of the Bank: o¥ØÛ|¥j¦Ûd{j¦idldz«Øj¦e|«qãÛ}ÎÎj¦Ûle¥ 1) Appointment - Dr. +asmukh Adhia as part-time non-ofÀcial Director as well Î as Non-Executive Chairman on the Board of Bank of Baroda vide notiÀcation no.F.No./1/2019-BO.I with effect from 1st March, 2019 for the tenure of àj¦j¦d{ lj¦¥}j¦ |zj¦j¦}«Û«j¦t|j¦j¦¥j¦dlØ three years or until further orders, whichever is earlier. j¦}ØÎlÎ 2) Completion of tenure of Shri Ravi Venkatesan as Chairman (Non-Executive) z| j¦d§Ø j¦Ï ¸qÛj«¦®Ûj¦j¦Ûd{o| Director of the Bank with effect from 1th August, 2018. iÜ¦| Ûdde¥j¦{ àj¦j¦}° {|zj¦i kj¦¥}j¦d{j¦Û 3) Extension of term of ofÀce of Shri P S -ayakumar as Managing Director j¦}«Û}Ûiqj¦j¦j¦¥j¦dl¥j¦Ûd{j¦idy¥Ø¤d§Ø and CEO of Bank for a further period of 1 year i.e. till 12th October, 2019 vide Central Government NotiÀcation no. F. No. /2/2015-BO.I issued by Øj¦ cÖzlÎ Ministry of Finance dated 11th October, 2018. àj¦j¦j¦¥}j¦|zj¦Ûdj¦j¦ll¥qe¥j¦|ÏÎliÎà ) Superannuation of Shri Ashok .umar Garg as an Executive Director of the àj¦j¦j¦¥}j¦|zj¦Û j¦j¦ÎØd§Ø j¦|ÏÎliÎà Bank with effect from 1st -uly, 2018. 5) Superannuation of Shri Mayank .. Mehta as an Executive Director of the z| j¦Ø j¦Ï ¸qÛj«¦®Ûj¦j¦Ûd{o| iÜ¦| Bank with effect from 01st October, 2018. Ûdde¥j¦{eÎ z àj¦j¦Î}° {j¦Û Øq|j¦ 6) Appointment of Shri Shanti Lal -ain, General Manager, Allahabad Bank as Ø àj¦j¦j¦¥}j¦|zj¦j¦}|§Øj¦lÎ an Executive Director of the Bank with effect from 20th September, 2018 z| j¦Ø j¦Ï ¸qÛj«¦®Ûj¦j¦Ûd{o| iÜ¦| vide Central Government NotiÀcation no. F.No./5/2018-BO.I issued by th Ûdde¥j¦{z| àj¦j¦Î}° {j¦Û¨¦zØ ÎkÛoÛj¦ Ministry of Finance dated 20 September, 2018. d§Ø àj¦j¦j¦¥}j¦|zj¦j¦}|§Øj¦lÎ 7) Appointment of Shri Vikramaditya Singh .hichi, General Manager, Dena Bank as an Executive Director of the bank with effect from 1st October, Ûj¦ q|j¦y|}Ûz Û} vj¦d}°ãØj¦j¦|Ø 2018 vide Central Government NotiÀcation no. F.No./5/2018-BO.I issued |zj¦j¦}«|Øj¦lÎ by Ministry of Finance dated 26th September, 2018. 8) Nomination of Shri Debasish Panda as GOI Nominee Director in place of z| j¦z ij¦{j¦|zj¦j¦}«Ûf‡||j¦j¦¥j¦ th j¦Û}Ø Shri Lok Ranjan with effect from 5 April, 2018. 9) Completion of tenure of Ms. Usha A Narayanan as a Shareholder Director z| j¦z j¦dqØd{| uj¦«}Ø}°Øj¦d| with effect from 12th December, 2018. z| j¦z j¦ àj¦j¦{j¦|zj¦j¦}«ÛÛ||Û{j¦Û 10) Appointment of Shri Srinivasan Sridhar as Shareholder Director of the Bank |§Ø with effect from 12th December, 2018 pursuant to resolution passed in Extra th v¥ uj¦«j¦v¤j¦|ÎØãÛ|zj¦«j¦yoØo|zÛle¥dãÛ|zj¦«j¦ Ordinary general Meeting held on 10 December, 2018 iq«vØyiq«v}ØØ|tj¦j¦Øz|}Îãqld uj¦}Îd Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance and a iq«vdet}d{j¦q|j¦Ûd}tÛj¦}°}Øj¦|dy¥j¦ãlÛzÛj¦iij¦ system exists for seeking and obtaining further information and clariÀcations on the yØ}°Ûf} {Î agenda items before the meeting and for meaningful participation at the meeting.

103 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 d{j¦ |¥«}ÎØ |Ûq j¦dÎØz«j¦o«j¦j¦¥Ïj¦Îj¦} Majority decision is carried through while the dissenting members· views are «j¦¢v¥j¦lÎ captured and recorded as part of the minutes. We further report that there are adequate systems and processes in the Bank Îej¦d}t¥j¦ØÎàj¦ àj¦«ej¦dj¦d}o|j¦d|}}¥}Øt commensurate with the si]e and operations of the Bank to monitor and ensure d}°¨¦i Îàqlj¦||«|«|«dz|z¥«j¦Û|l|Ûj¦|ÅØj¦ØÎà compliance with applicable laws, rules, regulations and guidelines. Îej¦dØ§Ø}t¥j¦ØÎàj¦d¢vtd{j¦z| àj¦«iÛtmt|i j¦¥ÎÎà We further report that during the audit period, the Bank had following speciÀc events qf}§ØfkØj¦||«|«|«z|z¥«|j¦«dzj¦d| {ØÎà¡ or actions which might have a bearing on the Bank·s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.: àj¦|o¥j¦}°Ø¥j¦Øy}°Ø¥j¦Îj¦}°Øj¦j¦e§tÛ 1) The Bank has allotted 3135653 Equity Shares of Rs. 2/- each to Promoter d tØj¦iÎàdz| j¦d}°j¦}°ãt¢j¦i§o«q«t ld and Promoter Group on 27th March, 2018 and has obtained Listing and tÐv ld|z|}°}Øj¦Î Trading Approval from Stock Exchanges with effect from 10th April, 2018. j¦vÖj¦j¦lj¦j¦¢d¢}|v}|d¢Ü×¦t,, ¢|vÛÛ^; 2) Call option/Redemption of Tier II Bond Series X aggregating Rs. 500.00 Cr. th d}°}°ãÛÎl With effect from 12 April, 2018. 3) Completion of Acquisition of 51% Shareholding of Baroda Pioneer Asset z| j¦Ø j¦ vÖz}|it|q«tj ¦}|Ûtv Û}ÛiiÛ Management Co. Ltd. (BPAMC) and Baroda Pioneer Trustee Co. Pvt. Ltd. d vÖz}|tÐtÛj ¦}|Û}°tvj¦Îv lj¦d{l°Îj¦j¦¥ on 28th September, 2018 from UniCredit S.P.A. BPAMC and Baroda Pioneer }j¦l|¨¦vtdi}Ûi Û}ÛiiÛd vÖz}|tÐtÛj ¦}|Û}° Trustee Co. Pvt. Ltd. becomes the Wholly Owned Subsidiary of Bank. tv àj¦j¦}¥Ød| lÛ | ) Board of Directors of the Bank has approved issuance of 10,00,00,000 fresh Equity Shares to its employees under Bank of Baroda Employee àj¦j¦|zj¦ v|| j¦dqØd}|Û v¥ uj¦« àj¦d¢Ü×¦ vÖz Share Purchase Scheme (“BOB-ESPS”) in their Board meeting held on j¦¥oÛkÛzq| CC Ûd Ûe¥i}Ûi j¦ØÎØd}|j¦¥o«j¦ 29th November, 2018 and the same has been approved by shareholders in |ie§tÛqÛj¦|j¦Û qÛzÛÎeq|Ûj¦dqØij¦d{ an Extra-Ordinary general meeting held on 21st -anuary, 2019. | uj¦«{j¦«¸d|zØj¦lÎ 5) Allotment of 9715 8.2% - Bank of Baroda ² Basel III Compliant Tier II z| j¦z j¦d tØ«j¦}°Øj¦ d|§v¥vÛ« Bonds ² Series XVIII of face value of Rs. 10,00,000/- each (Unsecured, Redeemable) to 17 allottees on 07th December, 2018 and has obtained j¦d j¦Øj¦ àj¦d¢Ü×¦ vÖz ,,,j ¦}«tt,, vÛÛ^;9,,, Listing approval for the same on NSE BSE with effect from 12th December, j¦d t|j¦ldej¦iz| j¦z Øyz j¦}°ã 2018 1th December, 2018. i|ie¥Øy Ûie¥}t lj¦d|z|}°}Øj¦l 6) Board of Directors of bank has granted In-principle approval for àj¦j¦|zj¦ v|z| j¦Ø j¦dqØd}|Û uj¦« àj¦d¢Ü¦ vÖz amalgamation of Vijaya bank and Dena Bank with Bank of Baroda in their meeting held on 29th September, 2018 and the same has been accorded by «q àj¦dz| àj¦j¦|j¦i· Øj¦} qÛzzÛdÏ Alternative Mechanism panel vide their letter dated 17th September, 2018 ¸qÛØ j¦}j¦{j¦}j¦j¦|^}|¸ej¦ÛÎØ issued by ministry of Finance. zÛle¥ 7) Scheme of Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda àj¦d¢Ü×¦ vÖz«q àj¦dz| àj¦j¦|j¦Ûq|j¦Ï ¸ have been notiÀed by ministry of Ànance vide their notiÀcation dated 2nd ãØj¦d{j¦j¦q}«}°j¦Øz| j¦q|Ûj¦Ûd{o|j¦{ -anuary, 2019 published in the ofÀcial Ga]ette of India and the same shall come into force on 1st April, 2019. d{oØj¦lÎdÎd}°lÎlÛ 8) Allotment of 200 8.0% - Bank of Baroda ² Basel III Compliant Tier II z| j¦z j¦d t«j¦}°Øj¦ d|§v¥vÛ« Bonds ² Series XIX of face value of Rs. 10,00,000/- each (Unsecured, j¦d j¦Øj¦ àj¦d¢Ü×¦ vÖz ,,,j ¦}«tt,, vÛÛq Redeemable) to 6 allottees on 20th December, 2018 and has obtained Listing approval for the same on NSE with effect from 27th December, 2018 BSE ;,;j¦d t|j¦lØyej¦iz| j¦z Øyz| j¦z th j¦}°ãi|ie¥Øy Ûie¥}t lj¦d|z|}°}Øj¦l with effect from 28 December, 2018. 9) Call option/Redemption of IPDI Bond Series I aggregating Rs. 300.20 Cr. de¥}ÛvÛde¥ ¢|vÛÛq,j¦j¦¢d¢}|v}|j¦Ûj¦j¦vÖÎ With effect from 30th -anuary, 2019. Îz| j¦q|Û}°ãÛÎl 10) Allotment of 2850 8.60% - Bank of Baroda ² Basel III Compliant Tier II z| j¦q|Ûj¦d t«j¦}°Øj¦ d|§v¥vÛ« Bonds ² Series XX of face value of Rs. 10,00,000/- each (Unsecured, th j¦d j¦Øj¦ àj¦d¢Ü×¦ vÖz ,,,j ¦}«tt,, vÛÛq Redeemable) to 5 allottees on 10 -anuary, 2019 and has obtained Listing approval for the same on NSE BSE with effect from 1th -anuary, 2019 ;;j¦d t|j¦lØyej¦i¨¦¡z| j¦q|Ûz| j¦q|Û 15th -anuary, 2019 respectively. j¦}°ãi|ie¥Øy Ûie¥}t lj¦d|z|}°}Øj¦l 11) Call option/Redemption of Tier II Bond Series IX aggregating Rs. 1000.00 t,, ¢|vÛÛ^,;j¦j¦¢d¢}|v}|j¦Ûj¦j¦vÖÎÎ Cr. With effect from 05th March, 2019. z| j¦o¥}°ãÛÎl 12) Pursuant to Regulation 30 of SEBI (LODR)Regulations,2015 Ministry of Finance ,Government of India vide its notiÀcation dated 27th March, 2019 Ï ãØj¦|d}|Ûz| j¦o¥j¦Ûd{o|¸ Û idvÛd has conveyed its decision towards Capital Infusion of Rs.5,02 Crore by ||j¦|j¦d|e§tÛ«j¦d{|Ûd t| }°ØãØ« way of Preferential Allotment of Equity shares (Special Securities/Bonds) v j¦¸j¦vÖj¦} qÛl| {Ûd}||¥dlØj¦ For Ragini Chokshi & Co. j§Ù l}Üoj§Üi¡vj¡§~}Ü (Company Secretaries) j¡§~}Üo Ragini Chokshi l}Üoj§Ü (Partner) C.P.NO.1436 r{ FCS NO. 2390 Ü~Ü}¡ Place: Mumbai iÝØ§Üi}¡ Date: May 13, 2019 y|¡ e¥ z| j¦¡e¥

104 ÏÙ~¦ÐÜoj§ Key Financial Indicators

ÏÙ~¦ÐÜoj§ .H\)LQDQFLDO,QGLFDWRUV ¨¦ }°ØØ« 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31.03.2019 S. No. Particulars (In Percentage) 1 qddØj¦¥Û|{ iv iÜ¦ 6.62% 6.31% 6.27% 6.35% 7.26% Interest Income / Average Working Funds (AWF) 2 qiv iÜ¦ 4.59% 4.49% 4.26% 4.09% 4.54% Interest expenses / AWF 3 | qq¥| i|de¥i 2.31% 2.05% 2.19% 2.43% 2.72% Net Interest Margin (NIM) 4 qØiv iÜ¦ 2.03% 1.83% 2.01% 2.26% 2.71% Interest spread / AWF 5 l qdiv iÜ¦ 0.68% 0.72% 1.00% 0.97% 0.88% Non-Interest Income / AWF 6 }o|iv iÜ¦ 1.18% 1.28% 1.38% 1.48% 1.64% Operating expenses / AWF 7 lØdd|}Ø 43.63% 50.30% 45.86% 45.87% 45.56% Cost Income Ratio 8 j¦ }o| ãiv iÜ¦ 1.53% 1.26% 1.63% 1.75% 1.96% *URVV 2SHUDWLQJ SURÀW$:) 9 |ãiv iÜ¦ 0.52% -0.77% 0.21% -0.35% 0.06% 1HWSURÀW$:) 10 |Ø}}°Øã 9.21% -17.64% 4.53% -7.64% 1.18% Return on Net Worth 11 dØ«}}°Øã 0.48% -0.80% 0.20% -0.34% 0.06% Return on Assets 12 dØdØ«}}°Øã 0.49% -0.78% 0.20% -0.34% 0.06% Return on Average Assets 13 dl°«}}°ØÜ¦ 8.11% 7.35% 7.27% 7.13% 7.65% Yield on Advances 14 q«j¦ÛlØ 5.18% 5.05% 4.78% 4.50% 4.68% Cost of Deposits 15 ã ãlØ|d|}Ø j¦}¥tã j¦ÎØ 25.06% 0.00% 24.06% 0.00% 0.00% Dividend payout Ratio (including Corporate Dividend Tax) 16 hqd|}Ø 84.82% 78.29% 71.86% 76.92% 80.27% Credit -- Deposit Ratio 17 hl {j¦o|{d|}Ø| d| lÛej¦e«« 89.15% 81.37% 74.44% 79.83% 83.01% |j¦âvÖj¦ qd|}Ø Credit + Non SLR Investment (excluding Investments in Subsidiaries) /Deposit Ratio 18 } qÛ}¥}ØØd|}Ø ,, 13.33% 14.20% - - - Capital Adequacy Ratio - BASEL II tÛ, 10.14% 11.21% - - - Tier - I tÛ,, 3.20% 2.99% - - - Tier - II 19 } qÛ}¥}ØØd|}Ø ,,, 12.60% 13.17% 12.24% 12.13% 13.42% Capital Adequacy Ratio - BASEL III tÛ, 9.87% 10.79% 9.93% 10.46% 11.55% Tier - I tÛ,, 2.73% 2.38% 2.31% 1.67% 1.87% Tier - II

105 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

¨¦ 31.03.2015 31.03.2016 31.03.2017 31.03.2018 31.03.2019 S.No. Particulars 1 j¦¥oÛ k 49378 52021 52420 55662 55754 Employees (number) 2 ki k 5250 5390 5481 5526 5598 Branches (number) 3 }°Øj¦¥oÛ `j¦v×« 18.89 16.80 17.49 17.66 18.88 Business per employee (` in crore) 4 }°Øj¦¥oÛdØ `j¦v×« 18.48 18.90 17.91 17.71 18.65 Average Business per employee (` in crore) 5 }°Øj¦¥oÛj¦ã `k«« 20.08 16.95 20.94 21.57 24.19 *URVV3URÀWSHUHPSOR\HH ` in lakh) 6 }°Øj¦¥oÛ|ã `k«« 6.88 -10.37 2.64 -4.37 0.78 1HW3URÀWSHUHPSOR\HH ` in lakh) 7 }°Øk `j¦v×« 199.17 177.70 179.70 184.36 197.84 Business per branch (` in crore) 8 }°Økj¦ã `j¦v×« 1.89 1.64 2.00 2.17 2.41 *URVV3URÀWSHUEUDQFK ` in crore) 9 }°Øk|ã `j¦v×« 0.65 -1.00 0.25 -0.44 0.08 1HW3URÀWSHUEUDQFK ` in crore) 10 }°Ødq¥| ` 15.83* -23.89 6.00 -10.53 1.64 Earnings per share (`) 11 }°Ø ÎÛ ` 166.83* 132.74* 132.46 120.28 138.42 Book Value per share (`) ÊÙ¢ã||Õj¦Û¥j¦}t¥ qÎ f}§Øl}âÕj¦d j¦vÖ j¦}|¥ÎÛj¦Ø}|¡lÛ¥j¦Øj¦lÎ @ ` 2/- }°Øj¦d j¦Ø} 6RXUFH$QQXDO5HSRUWVRIYDULRXV\HDUV SUHYLRXV\HDU VÀJXUHVDUHUHJURXSHGDQGUHFODVVLÀHGZKHUHDSSURSULDWH #DIWHUHTXDOL]DWLRQ of face value of` 2/- per share

106 ÏÙ~¦ÐÜoj§ Key Financial Indicators

~ äi¡'HÀQLWLRQV d Ùj§¦Ü}|¡ ¡ j¦dØ«j¦}j¦dØ $YHUDJH:RUNLQJ)XQGV ¡ Fortnightly/Daily average of total assets iviÝ§ $:) d Ùq ¡ ¡ j¦q«j¦}j¦dØ $YHUDJH'HSRVLWV ¡ Fortnightly/Daily average of total deposits d Ùdl± ¡ j¦dl°«j¦}j¦dØ $YHUDJH$GYDQFHV ¡ Fortnightly/Daily average of total advances d Ù ¡ dØq«ddØdl°«j¦l $YHUDJH%XVLQHVV ¡ Total of Average Deposits & Average Advances d Ù} ¡ j¦| j¦}j¦dØ $YHUDJH,QYHVWPHQWV ¡ Fortnightly/Daily average of total investments qd iviÝ§ ¡ j¦ qdj¦dØãqØj¦ j¦¥Û|{« ,QWHUHVW,QFRPH$:) ¡ Total Interest Income Divided by AWF qiviÝ§ ¡ j¦ qãlz«iv iÜ¦ ,QWHUHVW([SHQVHV$:) ¡ Total interest expenses Divided by AWF qÙ iviÝ§ ¡ j¦ qdmti ¡j¦ q ãqØj¦« ,QWHUHVW6SUHDG$:) ¡ (Total Interest Income minus Total Interest iv iÜ¦ Expenses) Divided by AWF l qdiviÝ§ ¡ j¦l qdãqØj¦«dØj¦¥Û|{ 1RQ,QWHUHVW ,QFRPH ¡ Total Non-Interest Income Divided by AWF AWF ~ o} ¡ j¦ko¥mti qko¥ 2SHUDWLQJ([SHQVHV ¡ Total Expenses minus Interest Expenses ~ o}iviÝ§ ¡ j¦}o|ãqØj¦«dØj¦¥Û|{ 2SHUDWLQJ H[SHQVHV ¡ Operating expenses Divided by AWF AWF lÙdd}~Ù ¡ }o|ãqØj¦« l qd q}°v &RVW,QFRPH5DWLR ¡ Operating Expenses Divided by (Non Interest Income plus Interest Spread) j§ ~ o} ¡ }o|ããqØj¦«iv iÜ¦ *URVV 2SHUDWLQJ ¡ 2SHUDWLQJSURÀWGLYLGHGE\$:) äiviÝ§ 3URÀW$:) ¸äiviÝ§ ¡ ·ããqØj¦«iv iÜ¦ 1HW3URÀW$:) ¡ 1HW3URÀW'LYLGHGE\$:) ¸Ù~ ~±Ùä ¡ ·ããqØj¦«·Ø }|¥ j¦| 5HWXUQRQ1HW:RUWK ¡ 1HW 3URÀW 'LYLGHG E\ 1HW :RUWK H[FOXGLQJ }°Ø|{j¦âvj¦ revaluation reserves,FCTR & Deferred Tax Assets) dÙ¬~ ~±Ùä ¡ ·ããqØj¦«j¦dØ« 5HWXUQRQ$VVHWV ¡ 1HW3URÀW'LYLGHGE\7RWDO$VVHWV d ÙdÙ¬~ ~±Ùä ¡ ·ããqØj¦«dØdØ« 5HWXUQ RQ $YHUDJH ¡ 1HW3URÀW'LYLGHGE\$YHUDJH$VVHWV Assets dl±¬~ ~±ÙÝ§ ¡ dl°«}dq¥Ø qãqØj¦«dØdl°

107 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

o¦j§Ù}~ Balance Sheet as on 31st March, 2019

(` in 000's) d}oÜ o¦j§ o¥j¦ SCHEDULE As on As on 31st March 2019 31st March 2018 ~¡qÜd {Ùi¡ CAPITAL & LIABILITIES } qÛ Capital 1 530,36,44 530,36,44 d t|j¦i Ødz| Share application money pending 1A 5042,00,00 - allotment }°Ø|{ dd{ Reserves and Surplus 2 45410,73,29 42864,40,75 q Deposits 3 638689,71,72 591314,82,24 f{ÛlÛ Borrowings 4 67201,29,78 62571,97,19 d|zØi i }°{| Other Liabilities and Provisions 5 24113,29,26 22718,20,54 j¦ T O T A L 780987,40,49 719999,77,16 dÙ¡ ASSETS ãØÛ^¥ àj¦j¦} Cash and Balances with Reserve 6 26661,72,83 22699,63,98 |j¦zÛd Bank of India àj¦«j¦}Øy li d} Balances with Banks and Money at 7 62567,88,71 70197,73,91 o|}}°Øz Call and Short Notice | Investments 8 182298,08,18 163184,53,05 dl° Advances 9 468818,73,62 427431,83,13 dodØ Fixed Assets 10 6990,29,54 5367,39,22 d|dØ Other Assets 11 33650,67,61 31118,63,87 j¦ T O T A L 780987,40,49 719999,77,16 dj¦j¦zØi Contingent Liabilities 12 380312,98,46 298226,66,31 Ûj¦i Bills for Collection 49059,93,06 45779,69,17 fk|Ûk|ÛØ Significant Accounting Policies 17 k«}t}} Notes on Accounts 18 g}z¥ÛlÛd|o Ø|}j¦ij¦dã||ãlÎà 7KH6FKHGXOHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKH%DODQFH6KHHW

|zj¦ k}Ûj¦ v£Ïkdc× ~Üiqj§ {Ü~¡v j¦Øj§ÜÜii~Ü j¦Ø¡mÜj¡§ d{ }° {|zj¦i j¦d |zj¦ |zÛkj¦ |zÛkj¦ ~~}l~Ù dqj§ l~j§dl± iÜ¦di|¡v v iÜ¦di|¡e¥ j¦¥}j¦|zj¦ |zj¦ |zj¦ Üiv ^vÞ§^ Üi qÜ¡mÜ ¡Ùq } ä Ùj§ vÜv¡l rz rz j¦¥}j¦|zj¦ |zj¦ i| i| j¦ØqÜij§~v×j¡§ j¦Øid v}vj¡§ii~Ü ©§{Ù¡ÏkÜoÜ Ü}}Ü| j¦¥}j¦|zj¦ |zj¦ |zÛkj¦ |zÛkj¦ iÜ¦di|v iÜ¦di|i|i| qÜ ÜidÙÏ Üi¡{Ü~v}v Î}° {j¦i ÛiÜ¦d rz rz j¦¢}Ù¥tkØi j¦{| i| i| y|¡ e¥ z| j¦e¥

108 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

o¦j§~Ù¦j§äÏ}k Profit & Loss Account for the year ended 31st March, 2019 (` in 000's) o¦j§ o¥j¦ Year Ended Year Ended 31st March 2019 31st March 2018 , d I. INCOME dq¥Ø q Interest Earned 13 49974,10,93 43648,54,18 d|d Other Income 14 6090,99,15 6657,15,27 j¦ T O T A L 56065,10,08 50305,69,45 ,, II. EXPENDITURE ko¥j¦l q Interest Expended 15 31290,30,04 28126,76,69 }o| Operating Expenses 16 11287,97,81 10173,36,96 }°{|ddj¦j¦ Provisions and Contingencies 13053,29,98 14437,37,02 j¦ T O T A L 55631,57,83 52737,50,67 ,,, ãÎ| III. PROFIT / LOSS d{j¦i|ã Î| Net Profit/ (Loss) for the period 433,52,25 (2431,81,22) |q|ÎØf} { Available for Appropriation 433,52,25 (2431,81,22) |q|d Ø Appropriations / Transfers i {j¦}°Ø|{ a) Statutory Reserve 108,38,06 - Û } qÛlØ}°Ø|{ b) Capital Reserve 210,36,34 - Û qi d|}°Ø|{ c) Revenue and Other Reserves , |fØoc}°Ø|{ I) Investment Fluctuation 21,57,83 - Reserve ,, |dØ|{ II) General Reserve - (2431,81,22) ,,, dj¦d{| III) Special Reserve u/s 36 (1) 182,08,00 - dj¦d{|j¦Û (viii) of the Income Tax Act, { YLLL j¦d Øl¥Ø 1960 Income Tax Act, 1961 }°Ø|{ ,9 |}°Ø|{kØ IV) Investment Reserve Account (88,87,98) - 9 lØ¥jdØ§Ø V) Transfer from Excess - - Appropriation of previous year |q|d Ø vÛ }°ØØã d) Proposed Dividend - - ã j¦ÎØ (including Dividend Tax) ˆºÅ¥¸ TOTAL 433,52,25 (2431,81,22) }°Ødq¥| ` Basic Earnings per Share (`) 1.64 (10.53) }°Ø×vtvdq¥| ` Diluted Earnings per Share (`) 1.41 (10.53) fk|Ûk|ÛØ Significant Accounting Policies 17 k«}t}} Notes on Accounts 18 g}z¥ÛlÛd|o Ø|}j¦ij¦ The Schedules referred to above form an dã||ãlÎ integral part of the Balance Sheet. DIRECTORS AUDITORS 'U+DVPXNK$GKLD 36-D\DNXPDU 'HEDVLVK3DQGD For .DO\DQLZDOOD 0LVWU\//3 For 6LQJKL &R Chairman Managing Director & CEO Director Chartered Accountants Chartered Accountants FRN:104607W / W100166 FRN : 302049E 3DSLD6HQJXSWD $MD\.XPDU *RSDO.ULVKDQ$JDUZDO &$'DUDLXV=)UDVHU &$5DMLY6LQJKL Executive Director Director Director Partner Partner M No. 042454 M No. 053518 6KDQWL/DO-DLQ %KDUDWNXPDU''DQJDU Executive Director Director For *0.DSDGLD &R For 65'LQRGLD &R//3 Chartered Accountants Chartered Accountants 9LNUDPDGLW\D6LQJK 6ULQLYDVDQ6ULGKDU FRN : 104767W FRN : 001478N / N500005 .KLFKL Director Executive Director &$$WXO6KDK &$6DQGHHS'LQRGLD Partner Partner *5DPHVK M No. 039569 M No. 083689 General Manager and CFO Corp. A/cs & Taxation Place: Mumbai Date: 22nd May 2019 109 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ù}~j§Üd}o¡ Schedules to Balance Sheet (` in 000’s) o¦j§ o¦j§ As on 31st March 2019 As on 31st March 2018 d|oÛ} qÛ SCHEDULE - 1 CAPITAL }°{j¦Ø} qÛ AUTHORISED CAPITAL }°Ø`j¦ 1500,00,00,000 Shares of ` 2/- each }â¥ (previous year 1500,00,00,000/- shares of `. 2/- each) }°Ø`j¦ 3000,00,00 3000,00,00 }l¦ÙÙzdä{Ð ISSUED AND SUBSCRIBED ~¡qÜ CAPITAL }°Ø`j¦ 265,91,83,632 Equity Shares of e§tÛ `2/- each }â¥e§tÛ (previous year 265,91,83,632 shares of `. 2/- each) }°Ø`j¦ 531,83,67 531,83,67 lÛlÛ} qÛi }°zÏ} qÛ CALLED-UP & PAID-UP CAPITAL }°Ø`j¦e§tÛ 264,55,16,132 (previous year }â¥ 264,55,16,132) Equity Shares of `2 each including 167,34,59,020 q«j¦|®j¦¸ Equity Shares (previous {Øj¦`j¦vÖj¦ year 169,38,47,146 Shares) e§tÛ }â amounting to ` 335.69 crores ¥ Îà held by Central Government 529,10,32 529,10,32 qvÖ«¡q Øj¦ili Add : Forfeited Shares }â¥ 136,67,500 (Previous year 136,67,500) 1,26,12 1,26,12 j¦ TOTAL 530,36,44 530,36,44

d|oÛi SCHEDULE - 1A dz|} Ø Share Application Money Pending Allotment ** d t| 5042,00,00 - 5042,00,00 - d t| j¦ÛÎidz|j¦Û{|zo¥j¦ãØj¦}°}Ødz|j¦ÛÎ 6KDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQWUHSUHVHQWVDSSOLFDWLRQUHFHLYHGIURP*RYHUQPHQWRI,QGLDRQWK0DUFK d}oÜ SCHEDULE - 2 d Ù}|¡d d| RESERVES & SURPLUS I ¡|j§d Ù}|¡ I Statutory Reserves }°ãj¦ Opening Balance 9314,75,69 9314,75,68 d{j¦z|}{¥| Additions during the period 108,38,06 9423,13,75 - 9314,75,68 II ~± Ù~¡qÜ II Capital Reserves `j¦vÖj¦Û (including Revaluation }|¥ j¦Ø}°Ø|{ÎØ Reserve of `4514.10 crores (previous years ` 3156.34 ` }â¥ j¦vÖ crores) }°ãj¦ Opening Balance 4509,55,62 4929,17,73

110 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

(` in 000’s) o¦j§ o¦j§ As on 31st March 2019 As on 31st March 2018 d{j¦z|}{¥| Additions during the period 2002,72,46 - d{j¦z|q| Adjustments during the period (46,56,98) (419,62,11) 6465,71,10 4509,55,62 j¦tØ ¡ Deductions: ãi Î|kØ«d ØØ Depreciation on revalued fixed }|¥ j¦ØdodØ«} assets transferred to General Reserve (to Profit & Loss ¾ account in previous period) 388,03,94 6077,67,16 - 4509,55,62 III ~±Ü III Share Premium }°ãj¦ Opening Balance 16035,73,80 10729,00,93 d{j¦z|}{¥| Additions during the period - 16035,73,80 5306,72,87 16035,73,80 ,9 qd d}d Ù IV Revenue and other }|¡ Reserves i {j¦dØ|{ a) Statutory Reserve zÛ (Foreign) }°ãj¦ Opening Balance 106,39,92 106,39,92 d{j¦z|q| Adjustments during the period - - 106,39,92 106,39,92 Û dj¦d{|j¦Û b) Special Reserve u/s { YLLL j¦d Øl¥Ø 36(1)(viii) of Income Tax Act, 1961 dØ|{ }°ãj¦ Opening Balance 4766,12,03 4766,12,03 d{j¦z|}{¥| Additions during the period 182,08,00 - 4948,20,03 4766,12,03 Û zÛ®¦}|ØØ c) Foreign Currency dØ|{ Translation Reserve }° ãj¦ Opening Balance 2084,96,77 1886,73,47 d{j¦z|q| Adjustments during the period 356,06,73 198,23,30 2441,03,50 2084,96,77 vÛ |dØk d) Investment Reserve Account }° ãj¦ Opening Balance 130,46,31 130,46,31 d{j¦z|}{¥| Additions during the period (88,87,98) - 41,58,33 130,46,31

e¥ |fØoc}°Ø e) Investment Fluctuation |{Û Reserve }° ãj¦ Opening Balance - - d{j¦z|}{¥| Additions during the period 21,57,83 - 21,57,83 -

111 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` in 000’s) o¦j§ o¦j§ As on 31st March 2019 As on 31st March 2018

iÜ¦ d|dØ|{ f) Other Reserves }° ãj¦ Opening Balance 5916,40,62 7978,49,95 d{j¦z|}{¥| Additions during the period - (24,318,122) d{j¦z|q| Adjustments during the period 398,98,35 369,71,89 6315,38,97 5916,40,62 j§,9 iÜÜvÜe¦d iÝ§ TOTAL - IV (a, b, c, d, e & f) 13874,18,58 13004,35,65 TOTAL (I toIV) j§× ,,9 45410,73,29 42864,40,75 d|oÛq SCHEDULE - 3 DEPOSITS i , lq A. I Demand Deposits L àj¦« i) From Banks 2007,90,35 1473,91,42 LL d| ii) From Others 44892,82,26 46900,72,61 44587,95,23 46061,86,65 ,, oØ àj¦q II Savings Bank Deposits 176893,64,72 165716,70,38 ,,, ÛzÛq III Term Deposits L àj¦« i) From Banks 52626,95,35 34152,90,36 LL d| ii) From Others 362268,39,04 414895,34,39 345383,34,85 379536,25,21 j§ ,,,, TOTAL (I to III) 638689,71,72 591314,82,24 Û , ãØ«yØkd«j¦Û B. I Deposits of branches in India q 517966,56,07 466973,83,97 ,, ãØ ÎyØkd« II Deposits of branches outside India j¦Ûq 120723,15,65 124340,98,27 j§ ,d ,, TOTAL (I & II) 638689,71,72 591314,82,24 d|oÛ SCHEDULE - 4 f{ÛlÛ BORROWINGS , ãØ«f{ÛlÛ I Borrowings in India L ãØÛ^¥ àj¦ i) Reserve Bank of India 27500,00,00 26529,00,00 LL d| àj¦ ii) Other Banks 7321,70,32 7773,59,94 LLL d| y|i iq« iii) Other Institutions and 4452,85,75 3452,50,55 Agencies LY ||Û ÛzÛh iv) Innovative Perpetual 5961,50,00 6261,70,00 kØ de¥}ÛvÛde¥ Debt Instruments (IPDI) Y l v v) Subordinated Bonds 6456,50,00 6000,00,00 j§ LWRY TOTAL (i to v) 51692,56,07 50016,80,49

112 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

(` in 000’s) o¦j§ o¦j§ As on 31st March 2019 As on 31st March 2018 ãØj¦ Îf{ÛlÛ II Borrowings outside India 15508,73,71 12555,16,70 ,, j§f| ÜlÜ ¡ Total - Borrowings (I & II) 67201,29,78 62571,97,19 ,i¡,, f}§Ø«q|ØÛf{ Secured Borrowings included 30774,19,77 1313,90,88 in above d|oÛ SCHEDULE - 5 d|zØi d}°{|¡ OTHER LIABILITIES AND PROVISIONS , z I Bills Payable 1889,89,97 1994,91,51 ,, d Øj¦¥q| | II Inter Office Adjustments 2561,49,48 568,29,77 (Net) ,,, f}oØ q III Interest Accrued 3615,09,63 3342,73,31 ,9 |j¦dl°«j¦Ûiq« IV Contingent Provision against 3153,12,25 3159,22,06 dj¦j¦}°{| Standard Advances 9 d| }°{|«ÎØ V Others (including provisions) 12893,67,93 13653,03,89 j§ ,9 TOTAL (I to V ) 24113,29,26 22718,20,54 d|oÛ SCHEDULE - 6 ãØÛ^¥ àj¦j¦}|j¦zÛ CASH AND BALANCES WITH RESERVE BANK OF d INDIA , Îy«|j¦zÛ zÛ®|t« I Cash in hand (including foreign currency notes) ÎØ 3336,73,22 3024,46,82 ,, ãØÛ^¥ àj¦j¦}o II Balances with Reserve Bank of India in Current Account kØ« 23324,99,61 19675,17,16 j§ ,d ,, TOTAL (I & II) 26661,72,83 22699,63,98 d|oÛ SCHEDULE - 7 àj¦«j¦}Øy l BALANCES WITH BANKS AND MONEY AT CALL & i d}o|}z SHORT NOTICE , ãØ« I In India L àj¦«j¦} i) Balances with Banks i okØ«« a) in Current Accounts 59,20,73 203,04,13 Û d|qkØ«« b) in Other Deposit Accounts 4458,88,75 4518,09,48 4866,78,05 5069,82,18 LL li d}o|}z ii) Money at call and short notice with i àj¦«j¦} a) Banks - 4900,00,00 Û d| y|«j¦} b) Other institutions - - - 4900,00,00 j§ Ld LL TOTAL (i and ii) 4518,09,48 9969,82,18 ,, ãØ Î II Outside India L okØ«« i) in Current Accounts 26183,61,17 19638,68,32 LL d|qkØ«« ii) in Other Deposit Accounts 24927,18,96 28514,87,19 113 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` in 000’s) o¦j§ o¦j§ As on 31st March 2019 As on 31st March 2018 LLL àj¦«j¦} li d} iii) Money at Call and Short Notice with Banks o|}z 6938,99,10 12074,36,22 j§ LLLd LLL TOTAL (i, ii and iii) 58049,79,23 60227,91,73 j§ ,d ,, TOTAL (I and II) 62567,88,71 70197,73,91 d|oÛ| SCHEDULE - 8 INVESTMENTS

, ãØ«| j¦ I Investments in India (Gross) 172412,15,64 155514,32,79 mt«¡¾j¦i}°{| Less: Provision for Depreciation 1665,34,67 1501,42,96

ãØ«|| Net Investments in India 170746,80,97 154012,89,83 dldl B R E A K - U P L j¦Û}°ØãØ i) Government Securities 158903,83,87 140778,47,34 [§ lj¦}¥|d¢Ü¦ [Includes `848.14 crores (Previous year ` 977.63 e v«¢qj¦ili` crores) face value of ` j¦vÖj¦d j¦Ø 839.40 crores (Previous }â¥`j¦vÖ year `947.57 crores) j¦`j¦vÖÎØ lodged with Clg. Corp. of }â¥`j¦vÖ India] Î`] >iÛi§j¦y¢q [Includes `0.51 crores j¦ili`j¦vÖj¦ (Previous year ` 0.52 crores) face value of ` d j¦Ø }â¥ 0.50 crores (Previous `j¦vÖ j¦` year ` 0.50 crores) j¦vÖÎØ }â¥ lodged with MCX] `j¦vÖ @ >i|ie¥j¦}¢qj¦i [Includes ` 5.04 crores li`j¦vÖd j¦Ø (Previous year `0.00 crores) face value of ` ` }â¥ j¦vÖ j¦ 5.00 crores (Previous `j¦vÖj¦ }â¥ year `0.00 crores) lodged ` j¦vÖ Î@ with NSE] > Ûie¥j¦}¢qj¦i [Includes ` 0.91 crores li`j¦vÖj¦d j¦Ø (Previous year `0.93 crores) face value of ` ` }â¥ 0.90 crores (Previous j¦vÖ j¦`j¦vÖ year `0.90 crores) lodged }â¥`j¦vÖ with BSE] Î@ LL d|d|zØ}°ØãØ ii) Other Approved Securities 1,28,00 1,28,00

LLL iii) Shares 2265,74,03 1858,51,32 LY v «od v iv) Debentures and Bonds 6113,94,32 6619,04,65

114 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

(` in 000’s) o¦j§ o¦j§ As on 31st March 2019 As on 31st March 2018 Y d| l d §Ø v) Subsidiaries and/or Joint Ventures fµ 1424,52,82 1110,17,45 YL d|| vi) Other Investments qj¦}«tÛde¥ (Commercial Papers, Units of UTI & Other d|odÜ ¦vj¦Û|t« Mutual Funds, Pass }y°}°}dz Through Certificates etc.) 2037,47,93 3645,41,07

170746,80,97 154012,89,83 II ä Ùj§Ï } j§ II Investments Outside India (Gross) 11848,07,56 9517,50,31 mt«¡¾j¦i}°{| Less: Provision for Depreciation 296,80,35 345,87,09 ãØj¦ Î|| Net Investments Outside India 11551,27,21 9171,63,22 dldl B R E A K - U P L j¦Û}°ØãØ y|Û i) Government Securities }°{j¦«ÎØ (Including Local Authorities) 3752,44,35 4221,11,30 LL z««d| l Øy ii) Subsidiaries and/or joint dy §Øfµ ventures abroad 2185,58,12 906,72,62 LLL d|| v «o¥ ¢v¤ iii) Other Investments dz (Debentures, Bonds etc.) 5613,24,74 4043,79,30

11551,27,21 9171,63,22

j§ ,d ,, TOTAL (I and II) 182298,08,18 163184,53,05 d|oÛdl° SCHEDULE - 9 ADVANCES i L kÛzdã|ili A. i) Bills Purchased and Discounted 26369,80,08 45179,22,95 LL |j¦zhdvÐªtd ii) Cash Credits, Overdrafts l}oj¦ØÛlh and Loans Repayable on Demand 201945,89,01 191167,56,48

LLL ÛzÛh iii) Term Loans 240503,04,53 191085,03,70 j§i LLLL TOTAL A (i to iii ) 468818,73,62 427431,83,13 Û L Ø¥dØ«}°ØãØ B. i) Secured by Tangible ÎÛhj¦Ûiq«dl°« Assets (includes ÎØ advances against Book Debts) 365497,80,57 296696,57,71 LL àj¦j¦Ûl tÛØ ii) Covered by Bank/ Government Guarantees 40160,67,85 52843,86,21

LLL lq|ØÛ iii) Unsecured 63160,25,20 77891,39,21 j§Ü LLLL TOTAL B (i to iii) 468818,73,62 427431,83,13

115 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` in 000’s) o¦j§ o¦j§ As on 31st March 2019 As on 31st March 2018 Û , ãØ«dl° C. I Advances in India L }°yj¦Ø}°}Ø i Priority Sector 129969,03,18 112989,81,42 LL ¥q|j¦ ii Public Sector 37026,35,67 32914,57,59 LLL àj¦ iii Banks 202,01,49 1070,23,73 LY d| iv Others 202987,57,34 370184,97,68 177263,87,28 324238,50,02 ,, ãØ Îdl° II Advances Outside India L àj¦«}°} i Due from Banks 31227,97,25 48738,50,65 LL d|}°} ii Due from Others D kÛzdã|ili a) Bills Purchased & Discounted 4177,37,35 5206,52,51

E vÛj¦th b) Syndicated Loans 30432,99,73 19543,93,63 F d| c) Others 32795,41,61 98633,75,94 29704,36,32 103193,33,11 j§Ü ,d ,, TOTAL C (I & II) 468818,73,62 427431,83,13

d|oÛdodØ SCHEDULE - 10 FIXED ASSETS , } I Premises }â¥j¦o¥j¦ÛlØ} At cost as on 31st March of the preceding year 6349,11,70 6294,38,84 ¥j¦z|}{¥| Additions/adjustments during q| the year 2060,83,34 124,99,70

}|¥ j¦ØÎØ (Includes revalued amount) 8409,95,04 6419,38,54 ¥j¦z|j¦tØ q| Deductions/adjustments during the year 125,22,70 70,26,84

8284,72,34 6349,11,70 mti dqj¦ÛØÛkØj¦ Less:- Depreciation/ ¾}{| Amortisation to date 2526,76,25 5757,96,09 2165,79,72 4183,31,98 II d}dodÙ¡ Ý§}Ü¦o i¡ II Other Fixed Assets Ý§¨o j§j§ (including Furniture & Fixtures) }â¥j¦o¥j¦ÛlØ} At cost as on 31st March of the preceding year 5052,51,68 4660,86,43 ¥j¦z|}{¥| Additions/adjustments during q| the year 556,03,98 449,56,34

5608,55,66 5110,42,77 mti ¡¥j¦z| Less:- Deductions/ j¦tØ q| adjustments during the year 82,71,02 57,91,09

116 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

(` in 000’s) o¦j§ o¦j§ As on 31st March 2019 As on 31st March 2018

5525,84,64 5052,51,68 mti ¡dqj¦ÛØÛkØj¦ Less:- Depreciation to date ¾ 4293,51,19 1232,33,45 3868,44,44 1184,07,24

j§ ,,, TOTAL (I to II) 6990,29,54 5367,39,22

d|oÛ SCHEDULE - 11 d|dØ OTHER ASSETS

, f}oØ q I Interest Accrued 6001,81,53 7921,51,66 ,, dl°j¦ãlØ|ÉØ} II Tax paid in advance/tax j¦j¦tØÛ deducted at source (net of provisions) }°{|«j¦| 5881,92,01 2007,24,56

,,, k|l°Ûdt} III Stationery & Stamps 5,95,60 8,82,13

,9 d| IV Others 21760,98,47 21181,05,52

j§ ,,9 TOTAL (I to IV) 33650,67,61 31118,63,87 d|oÛ SCHEDULE - 12 dj¦j¦zØi CONTINGENT LIABILITIES , àj¦j¦·zq|Î«z|zÛ I Claims against the Bank not |ÎÛ |l acknowledged as Debts 2919,27,09 211,11,97 ,, d j¦oj¦Ø|«j¦ II Liability for partly paid zØ Investments 16,61,53 200,98,12 ,,, j¦z| zd«j¦ III Liability on account of j¦zØ outstanding Forward Exchange Contracts 260637,25,52 170806,17,73 ,9 mtj¦«j¦ÛdzÛlÛ IV Guarantees given on behalf l t ¡ of Constituents : j¦ ãØ« a) In India 26572,22,61 29607,03,00 k ãØ Î b) Outside India 4130,10,04 30702,32,65 10211,85,69 39818,88,69 9 Ûj¦Ø } j¦|i d| V Acceptances, Endorsements zØ and Other Obligations 22433,77,30 21378,12,86 9, d|z«q|j¦i àj¦j¦Û VI Other items for which the dj¦j¦zØÎà Bank is Contingently liable 63603,74,37 65811,36,94 j§ ,9, TOTAL (I to VI) 380312,98,46 298226,66,31

117 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` in 000's) o¦j§ o¦j§ Year Ended Year Ended 31st March 2019 31st March 2018 d|oÛ SCHEDULE - 13 dq¥Ø q INTEREST EARNED , dl°« «} q t¤t I Interest / Discount on 34388,96,60 29069,82,12 Advances / Bills ,, |«}d II Income on Investments 12786,71,55 10420,15,69 ,,, ãØÛ^¥ àj¦j¦} III Interest on Balances with 1735,20,36 2414,78,95 bdd|d Ø àj¦ Reserve Bank of India and |{«} q other Inter-Bank Funds ,9 d| IV Others 1063,22,42 1743,77,42

j§ ,,9 TOTAL (I to IV) 49974,10,93 43648,54,18 d|oÛ SCHEDULE - 14 d|d OTHER INCOME , j¦Û||d °j¦q I Commission, Exchange 1989,44,63 1784,53,59 and Brokerage ,, |«j¦¨¦}ã II Profit on sale of 1055,18,59 1985,85,56 Investments mti ¡|«j¦Û ¨¦Û} Less: Loss on sale of 65,73,09 989,45,50 108,23,71 1877,61,85 Î| Investments ,,, ãeØ«dd|dØ« III Profit on sale of Land, 18,67,45 71,22,83 j¦¨¦}ã Buildings and Other Assets mti ¡ãeØ«dd| Less: Loss on sale of Land, 3,31,91 15,35,54 1,63,43 69,59,40 dØ«j¦Û ¨¦Û}Î| Buildings and Other Assets ,9 ||z|}ã IV Profit on Exchange 745,39,09 950,78,44 Transactions mti ¡||z|} Less: Loss on Exchange 52,24,08 693,15,01 41,56,68 909,21,76 Î| Transactions 9 z«ãØ«d| l V Income Earned by way 154,08,40 133,38,34 j ¦}|«d §Øfµ« of Dividends etc. from ã dzj¦¦}« Subsidiaries/Companies dq¥Ød and/or Joint Ventures abroad/ in India

9, {d VI Miscellaneous Income 2249,50,07 1882,80,33 j§ ,9, TOTAL (I to VI) 6090,99,15 6657,15,27

118 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

(` in 000's) o¦j§ o¦j§ Year Ended Year Ended 31st March 2019 31st March 2018 d|oÛ SCHEDULE - 15 ko¥j¦l q INTEREST EXPENDED , q«} q I Interest on Deposits 27621,10,58 26007,94,39 ,, ãØÛ^¥ àj¦d Ø àj¦ II Interest on Reserve 2110,75,56 575,84,86 f{«} q Bank of India / Inter Bank Borrowings ,,, d| III Others 1558,43,90 1542,97,44 j§ ,,,, TOTAL (I to III) 31290,30,04 28126,76,69 d|oÛ SCHEDULE - 16 }o| OPERATING EXPENSES , j¦¥o«j¦ãlØ|d I Payments to and 5039,13,18 4606,87,16 ØØ {Û}°{| Provisions for Employees ,, j¦j¦d qÛ II Rent, Taxes and Lighting 1038,66,97 1011,08,39 ,,, ®dk|l°Û III Printing and Stationery 80,76,51 76,64,59 ,9 }|i }°o IV Advertisement and 103,94,99 117,24,93 Publicity 9 àj¦j¦Û}Ï} V Depreciation on Bank's 910,37,91 863,07,79 ¾ Property 9, |zj¦«j¦ÛÜ¦ÛãÏ VI Directors' Fees, 1,59,66 1,22,55 dko¥ Allowances and Expenses 9,, k}Ûj¦«j¦ÛÜ¦Ûdko¥ VII Auditors' Fees and 60,68,07 56,40,86 kk}Ûj¦«j¦ÛÜ¦Û Expenses (including i ko¥ÎØ Branch Auditors' Fees and Expenses) 9,,, {}°ã VIII Law Charges 159,76,38 90,50,35 ,; vj¦Ød IX Postages, Telegrams, 107,45,53 156,12,51 tÛÜ¦|dz Telephones etc. ; Ødkk X Repairs and Maintenance 922,82,58 741,81,83 ;, Û XI Insurance 700,06,21 610,16,65 ;,, d|ko¥ XII Other Expenditure 2162,69,82 1842,19,35 j§ ,;,, TOTAL (I to XII) 11287,97,81 10173,36,96

119 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

o¦j§~Ù¦ÏÙÏÐ~¦k¡j§}}ÜÙ¡ 6LJQLÀFDQW$FFRXQWLQJ3ROLFLHVIRUWKH\HDUHQGHG0DUFK Ù Üj§d| 1 BASIS OF PREPARATION ÏÛ q Øj¦ j¦ d|y fk | Î }}lØ 7KH¿QDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGXQGHUWKH historical cost convention unless otherwise stated. They lØd{}Øj¦ilÎàãØ«|Ø¡| conform to Generally Accepted Accounting Principles k j¦|· Ø« qÛii}Û j¦d|Îàq|« {j¦}°{| (GAAP) in India, which comprises statutory provisions, |j¦ãØÛ ^¥ àj¦ j¦ z|z¥ ãØÛ |zÛ regulatory/ Reserve Bank of India (RBI) guidelines, kj¦ y| de¥Ûide¥ ¸qÛk|j¦l¥zÛ¥ Accounting Standards/ guidance notes issued by the |t¤ØyãØj¦ àj ¦lfµl«}°oØj¦¥}°Ût Institute of Chartered Accountants of India (ICAI) and the practices prevalent in the banking industry in India. ÎzÛj¦¥«j¦ zã¥« {Øz«j¦}°oØ {j¦ ,Q UHVSHFW RI IRUHLJQ RI¿FHV VWDWXWRU\ SURYLVLRQV DQG }°{|«dj¦¥}°Ûj¦d|}|j¦lÎ practices prevailing in respective foreign countries are dj§}¬j§f~l complied with. ÏÛ j¦Øj¦|«ÏÛ j¦ÛØÛkj¦ 2 USE OF ESTIMATES }t¥j¦ÛlÛdØi zØd« dj¦j¦zØd«ÎØ Øy 7KH SUHSDUDWLRQ RI ¿QDQFLDO VWDWHPHQWV UHTXLUHV WKH }t¥j¦ÛlÛd{j¦Ûdi {Ûj¦}t¥j¦| management to make estimates and assumptions considered in the reported amount of assets and liabilites ÎØ}° {|j¦j¦Ø}d||«ddj¦|«j¦Ûzz|Û}vÖØÛ LQFOXGLQJFRQWLQJHQWOLDELOLWHV DVRIGDWHRIWKH¿QDQFLDO Î}° {|j¦ÇÎj¦ÏÛ j¦Øj¦|j¦i statements and the reported income and expenses }°§Ødj¦|j¦}¥dfoØÎàãÛ}e|dj¦|« for the reporting period. Management believes that ã||Îj¦ØÎàkd||««j¦e¥ãÛ}Ø¥| {| WKH HVWLPDWHV XVHG LQ WKH SUHSDUDWLRQ RI WKH ¿QDQFLDO Ø¥|i ãÛd{|Îlq Øj¦j¦d|yfk| statements are prudent and reasonable. Actual results j¦lÎ could differ from these estimates. Any revision to the accounting estimates is recognised prospectively in the } current and future periods unless otherwise stated. àj¦|}t|j¦d{}|«j¦ik j¦|j¦Ûij¦|}·Ø 3 Investments: j¦d|j¦ØÎ àj¦j¦|«j¦lÛ¥j¦i j¦|ãØÛ The Bank is following uniform methodology of accounting for investments on settlement date basis. ^¥ àj¦j¦z| j¦qe¥j¦}} vÛ Ûd Û}Û Û &ODVVL¿FDWLRQ DQGYDOXDWLRQ RIWKH%DQN¶VLQYHVWPHQWV Ûj¦d|j¦qØÎ are carried out in accordance with RBI Circular DBR. lÛ¥j¦ No. BP. BC.6/21.04.141/2015-16 dated July 1, 2015. i lÛ¥j¦j¦d{ 3.1 Classification D %DVLVRIFODVVL¿FDWLRQ àj¦j¦|}t¥Ü¦«j¦lÛ¥j¦ãØÛ^¥ àj¦j¦ In compliance with the Reserve Bank of |z¥«j¦d|}|||j¦lÎq« India guidelines, the investment portfolio of WKH %DQN LV FODVVL¿HG LQWR i. CC}}§ØØj¦{Ø” iotÛi «| i. “Held to Maturity” (HTM) comprising Îàq|Î«}}§ØØj¦k|j¦f´}°}Øj¦ ,QYHVWPHQWVDFTXLUHGZLWKWKHLQWHQWLRQ lÎ to hold them till maturity. ii. CC} ÎØ {Ø ioiÜ¦tÛ « | ii. “Held for Trading” (HFT) comprising Îàq|Î«}j¦f´}°}Øj¦lÎiÛ ,QYHVWPHQWV DFTXLUHG ZLWK WKH }°ØãØ q|Î« k } kÛz j¦Û ØÛk intention to trade. Securities that are held principally for resale within 90 z|« j¦ d z }|¡ ¨¦Û ÎØ k l Î f|Î« days from the date of purchase are ioiÜ¦tÛÛ«lÛ¥j¦Øj¦lÎ FODVVL¿HGXQGHUWKH+)7FDWHJRU\ iii. CC ¨¦Û ÎØ f} { C iiÜ¦i « | iii. “Available for Sale” (AFS) comprising Îà q f}§Ø i Øy Û « |ÎÛ Îà dy¥Ø Investments not covered by (a) and (b) DERYH LH WKRVH ZKLFK DUH DFTXLUHG q | Ø } j¦ f´ }°}Ø j¦i li Îà d neither for trading purposes nor for |ÎÛ}}§ØØj¦k|j¦f´}°}Øj¦iliÎà being held till maturity. Ø| } « }°j¦tÛj¦ j¦ i |« j¦ d|oÛ For the purpose of disclosure in the EDODQFH VKHHW LQYHVWPHQWV DUH FODVVL¿HG | «}°j¦tÛj¦Øj¦}«Î««lÛ¥j¦Øj¦qØ DV GLVFORVHG LQ 6FKHGXOH µ,QYHVWPHQWV¶ Î i j¦Û}°ØãØ Û d|d|zØ}°ØãØ under six groups (a) government securities Û vÛ ¢vdv «o e¥ d| l d §Ø (b) other approved securities (c) shares (d)

120 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

fµiÜ¦ d| bonds and debentures (e) subsidiaries and joint ventures and (f) others. Û d{l°ÎlØ E &RVWRIDFTXLVLWLRQ d{l°Îj¦}°zÏlØ| {Û °j¦qd Cost such as brokerage pertaining to d j¦d{j¦i qqÛlØãØÛ^¥ LQYHVWPHQWVSDLGDWWKHWLPHRIDFTXLVLWLRQ àj¦j¦z|z¥«j¦d|ãi Î|kØ«vÛ and broken period interest are charged WRWKHSUR¿W ORVVDFFRXQWDVSHUWKH5%, qØÛÎ guidelines. Û lÕj¦ Ûod Ø c) Transfer between categories ij¦l¥zl¥«}|¡lÛ¥j¦Ø|zj¦l 5HFODVVL¿FDWLRQ RI LQYHVWPHQWV IURP RQH ÎØãØÛ^¥ àj¦j¦z|z¥«j¦d|}Î category to the other, if done, is in accordance with RBI guidelines. Transfer of scrip from iiÜ¦iioiÜ¦tÛ l¥ iotÛi l¥ « ¨¦}t j¦ AFS / HFT category to HTM category is made d Ø ÎÛ q«qj¦Îf at the lower of book value or market value. In }j¦qØÎiotÛiiiÜ¦iioiÜ¦tÛl¥« the case of transfer of securities from HTM to AFS / HFT category, the investments held d ØØ}°ØãØ ÎØvj¦f t}iotÛij¦d Øl¥Ø under HTM at a discount are transferred to {Ø |« j¦ d{l°Î z } iiÜ¦iioiÜ¦tÛ $)6+)7FDWHJRU\DWWKHDFTXLVLWLRQSULFH l¥ « d ØØ j¦ qØ Î d iotÛi l¥ « and investments placed in the HTM category at a premium are transferred to AFS / HFT at }°Û } {Ø |« j¦ iteqv lØ } the amortized cost. iiÜ¦iioiÜ¦tÛ«d ØØj¦qØÎ Transfer of investments from AFS to HFT iiÜ¦iioiÜ¦tÛj¦ Ûod}«|«j¦d Ø or vice-a-versa is done at the book value. ÎÛ}j¦qØÎi|«}¾ãÛ Depreciation carried, if any, on such investments is also transferred from one zÎØij¦l¥zl¥«d ØØj¦qil category to another. e|lÕj¦ Ûo}°ØãØ«j¦d Ød{l°ÎlØ ÎÛ The transfer of a security between these q}qãÛj¦Îd Øj¦ÛØÛkj¦ FDWHJRULHVLVDFFRXQWHGIRUDWWKHDFTXLVLWLRQ cost / book value / market value on the date kj¦Øj¦qildzd Ø}¾Î of transfer, whichever is the least, and the Øfj¦i}}°{|j¦qil depreciation, if any, on such transfer is fully ¡j§} provided for. 3.2 Valuation CC}}§ØØj¦{Ø j¦}«lÛ¥j¦Ø|«j¦ãØ dØd{l°ÎlØ}lÎ Ø¥Îd j¦Ø ,QYHVWPHQWV FODVVL¿HG DV ³+HOG WR 0DWXULW\´ DUH FDUULHG DW ZHLJKWHG DYHUDJH DFTXLVLWLRQ FRVW d{j¦ÎeyØ«}°Ûj¦}}§Øj¦Û unless it is more than the face value, in which d{Øj¦iteqvj¦lÎiotÛil¥j¦ case the premium is amortized over the period |«}}°Ûj¦iteq|j¦d Ûde¥j¦ remaining to maturity. Amortization expense of z|j ¦qe¥j¦}} vÛ Ûd Û}Û Û premium on investments in the HTM category is Ûj¦d|} qd«mt deducted from interest income in accordance with qØÎ RBI Circular DBR. No.BP.BC.6/21.04.141/2015- CC}}§Ø Øj¦ {Ø j¦ } « lÛ¥j¦Ø |« « 16 dated July 1, 2015. v «o ¢vq|Î«}}°j¦Øj¦Ûtdl°| ,QYHVWPHQWV FODVVL¿HG DV ³+HOG WR 0DWXULW\´ qØ Î Îà q|j¦ i dØ lÛ¥j¦ {Û includes debentures / bonds which are deemed to ãØÛ^¥ àj¦j¦j¦}¥|z vØydl°«}l be in the nature of / treated as advances (for which }°{|j¦d|}°{|j¦iqØÎà provision is made by applying the Reserve Bank Ûl°Û àj¦«tÐqÛ «j¦¢¥}}¥dq RI,QGLDSUXGHQWLDOQRUPVRIDVVHWVFODVVL¿FDWLRQ }°}}j¦ili|Îàdq|j¦ and provisioning applicable to Advances). j¦|{¥klØ}j¦lÎ}°yj¦Ø}°}Ø Investments in Regional Rural Banks, Treasury %LOOV &RPPHUFLDO 3DSHUV DQG &HUWL¿FDWHV RI j¦Ûd}d«j¦ikÛzli}y°}°}j¦ Deposit which have been valued at carrying cost. j¦|ãØÛ^¥ àj¦j¦z|z¥«j¦d| ÎÛ 3DVV WKURXJK &HUWL¿FDWHV SXUFKDVHG IRU SULRULW\ }j¦qØÎ VHFWRU OHQGLQJ UHTXLUHPHQWV DUH YDOXHG DW %RRN

121 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

§Øfµ«d| l«dÎlÛj ¦}|«« ãØ Value in accordance with RBI guidelines. Øyzz|«« dyÛ}°j¦j¦|«j¦âvÖj¦ Investments in subsidiaries, joint ventures and associates (both in India and abroad) are valued |«j¦ j¦|¾j¦mtj¦d{l°Î DW DFTXLVLWLRQ FRVW OHVV GLPLQXWLRQ RWKHU WKDQ lØ}j¦qØÎ temporary in nature. qk} qÛ|{ ÛÛiÜ¦ ej¦e««z| j¦ %DQN¶V LQYHVWPHQWV LQ XQLWV RI 9HQWXUH &DSLWDO j¦ zj¦ili àj¦|«j¦}° ãj¦ØÛ|¥j¦Ûd{ Funds (VCFs) made after 23.08.2006 are j¦ i “}}§Ø Øj¦ {Ø” l¥ « lÛ¥j¦Ø j¦ FODVVL¿HGXQGHU+70FDWHJRU\IRULQLWLDOSHULRG qØÎdlØ} j¦Øj¦qØÎ Ø of three years and are valued at cost. After j¦ØÛ|¥}ÅØe “ °¨¦Ûj¦if} {”«d ØØ period of three years from date of disbursement, j¦zqØÎãØÛ^¥ àj¦j¦z|z¥«j¦ it will be shifted to AFS category. These are valued using Net Assets Value shown by VCF d|ÏÛ «ÛÛiÜ¦¸z¥ili| DV SHU WKH ¿QDQFLDO VWDWHPHQWV RU GHFODUHG dØmØi|iÛ} j¦|j¦qØÎ NAV as per Reserve Bank of India guidelines. zi|iÛk}ÛØÏÛÎ|«d{j¦ ,I1$9DXGLWHG¿QDQFLDOVDUHQRWDYDLODEOHIRU f} {|ÎØ}°Øj¦ÛÛiÜ¦j¦i} more than 18 months continuously then at Re. j¦|j¦qil 1/- per VCF iiÜ¦idioiÜ¦tÛ«j¦d Øl¥ØlÛ¥j¦Ø| Investments categorized under AFS and HFT categories are Marked-to-Market (MTM) on a {Ød Ûde¥z|z¥«j¦d|} periodical basis as per relevant RBI guidelines. j¥¦vtj¥¦t itÛi ÎØÎàd|oÛ | « Net depreciation, if any, in the category under fkØlÛ¥j¦j¦d Øl¥Øl¥«|¾z WKH FODVVL¿FDWLRQ PHQWLRQHG LQ 6FKHGXOH ÎØãdÎ|kØ«|ØzÛqØÛÎ}°Øj¦ µ,QYHVWPHQWV¶ LV UHFRJQL]HG LQ WKH SUR¿W DQG lÛ¥j¦j¦d Øl¥ØÛ«|·zÎØ loss account. The net appreciation, if any, in the FDWHJRU\ XQGHU HDFK FODVVL¿FDWLRQ LV LJQRUHG f}Î}°{|j¦ili¾j¦Ûj¦âvÖj¦ except to the extent of depreciation previously j¦ d|zk j¦ z qØ Î | j¦ d{j¦ provided. The book value of individual securities j¦|j¦}}ij¦}°ØãØ«j¦ ÎÛ LV QRW FKDQJHG FRQVHTXHQW WR SHULRGLF YDOXDWLRQ z|ÎÛ qØ of investments. Investments received in lieu of restructured }|l¥uØdl°q|j¦ z«}°}Ø|«j¦ j¦| advances scheme are valued in accordance with d Ûde¥j¦z|z¥«j¦d|j¦qØÎe||« RBI guidelines. Any diminution in value on these j¦«de¥j¦Ûj¦i}°{|j¦qØÎdej¦ investments is provided for and is not used to f}lfÛ«d||}zj¦}°ØãØ««·j¦ set off against appreciation in respect of other yqØ|ÎÛ j¦qØ àj¦¸}|l¥u|q| performing securities in that category. Depreciation RQHTXLW\VKDUHVDFTXLUHGDQGKHOGE\WKH%DQN j¦d Øl¥Ødq¥Øe§tÛ«}¾d Ûde¥j¦ under restructuring scheme is provided as per RBI z|z¥«j¦d|f} {j¦qØÎ guidelines. }°Øj¦}tÕld{j¦Û}Ø}dØ}|Õo|j ¦}|« At the end of each reporting period, security receipts issued by the asset reconstruction ¸qÛ}°ØãØÛzj¦ j¦|^¥ àj¦¸i company are valued in accordance with the kØ«j¦i}°ØØlz|z¥«j¦d|j¦ guidelines applicable to such instruments, qilØz|i««qÎ dØ}|Õo|j ¦}|Û prescribed by RBI from time to time. Accordingly, ¸qÛ}°ØãØÛz|j¦zÛ}°Îj¦ {Øq|j¦ LQ FDVHV ZKHUH WKH FDVK ÀRZV IURP VHFXULW\ receipts issued by the asset reconstruction ØÎØkØj¦|zØÏÛdØ«j¦Øj¦}°} company are limited to the actual realization of «Øj¦ÛØj¦qØÎØ àj¦}°Øj¦}tÕlj¦Û WKH¿QDQFLDODVVHWVDVVLJQHGWRWKHLQVWUXPHQWVLQ ØÛkj¦eØÎj¦kØ«j¦ j¦|j¦idØ the concerned scheme, the Bank reckons the net asset value obtained from the asset reconstruction }|Õo|j ¦}|Û}}°}Ø|dØ company from time to time, for valuation of such j¦Ûl|j¦ld}°j¦ej¦ z}°ØãØ investments at each reporting date. In case of Ûz«j¦ili|q àj¦¸qz oÛle¥ investment in Security Receipts on or after April z l°ØdØ«¸y¥ØÎ«d|j¦i 1, 2017 which are backed by more than 50% of the stressed assets sold by the bank, provision }°{|dØ}|Õo|j ¦}|Û dÛ d}°ØãØj¦ for depreciation in value is made at higher of – j ¦}|Û iÛ ¸mØ|dØj¦|z v«j¦ SURYLVLRQLQJ UDWH UHTXLUHG LQ WHUPV RI QHW DVVHWV

122 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

d|d}Ø}°{|zd{j¦ÎlÛhj¦ value declared by Reconstruction Company (RC)/ ilqzdØlÛ¥j¦i }°{||z vj¦ Securitization Company (SC) or the provisioning UDWH DV SHU WKH H[WDQW DVVHW FODVVL¿FDWLRQ DQG d|ÎlÛdi|qilj¦ àj¦j¦Û ÎÛ«h provisioning norms as applicable to the underlying d||Ø¡qÛÎl}°ØãØÛz«d|z|j¦ loans, assuming that the loan notionally continue j¦|qÛj¦Ø¥dÛiÛ}°}Øi|iÛj¦d| in the books of the Bank. All other investments in Îl the Security Receipts are valued as per the NAV obtained from issuing RC / SC. itte|t«ttÐt de¥de¥tÛ e|Ý¦tÐ§o Investment in listed instruments of Real e|t«ttÐt e|t j¦oÛ ·kØ««|d{j¦ Estate Investment Trust (REIT) / Infrastructure «j¦Û|Ø}°}Øt¢j¦i§o«q«}|} Investment Trust (INVIT) is valued at closing price ÎØÎz j¦|j¦ÛØÛkz|«j¦ãÛØj¦ÛãÛ on a recognized stock exchange with the higher t¢j¦i§o«q}e|j¦¨¦¨¦|ÎÛ ÎØÎØf|j¦ volumes. In case the instruments were not traded on any stock exchange within 15 days prior to j¦| j¦|¸|{¥Ø|Û|Øi|iÛ q¥ date of valuation, valuation is done based on the }|Û|Î j¦d{}j¦qØÎ latest NAV (not older than 1 year) submitted by }°yj¦vÛj¦}« àj¦¸ioiÜ¦tÛÛj¦d Øl¥Ø the valuer. tÐqÛ ««j¦ili|j¦ j¦|klØ Investments made by the Bank as Primary Dealer in Treasury Bills under HFT category is being }j¦qÎÎ valued at carrying cost. àj¦ j«¦® j¦ j¦Û }|Û }°ØãØ« « d Ûde¥ j¦ The Bank undertakes short sale transactions z|z¥«j¦d|d} ¨¦Û|z|j¦ØÎ¢t¥ in Central Government dated securities in }qÛ| ¨¦Û}}°}Øj¦}«}ØÎØÛÎ accordance with RBI guidelines. The short SRVLWLRQ LV UHÀHFWHG DV WKH DPRXQW UHFHLYHG RQ d|d|oÛ«qØÎØÛÎ¢t¥}qÛ|j¦ sale and is netted in the Investment schedule. The qdÎ|j¦ioÎ¤|Øj¦qØÎdf short position is marked to market and loss, if any, ãdÎ|kØ«vqØÎq j¦fãÎ LV FKDUJHG WR WKH 3UR¿W DQG /RVV DFFRXQW ZKLOH ØfâvÖzqØÎ¢t¥}qÛ|j¦|}t|Îe¥ JDLQLIDQ\LVLJQRUHG3UR¿W/RVVRQVHWWOHPHQW ãÎ|j¦ãdÎ|kØ«z¥qØÎ RIWKHVKRUWSRVLWLRQLVUHFRJQL]HGLQWKH3UR¿WDQG Loss account. vqj¦Ø vf¥j¦ vvÛi v Special bonds such as Oil bonds, fertilizer bonds, dzqÛ{ãØj¦¸qÛj¦iqØÎàj¦ UDAY bonds etc which are directly issued by j¦|iÜ¦de¥ Ûij¦d{}j¦qØÎ Government of India, is valued based on FIBL valuation. “¨¦¨¦j¦i{Ø”d ¨¦Ûj¦if} {« )RUWKHSXUSRVHRIYDOXDWLRQRITXRWHGLQYHVWPHQWV «j¦tv|j¦ j¦|j¦iz«t¢j¦i§o«q«} in ”Held for Trading” and “Available for Sale” qz«f·ÏÛ «oj¥¦e v}°ettv FDWHJRULHV WKH PDUNHW UDWHV TXRWHV RQ WKH iÜ¦ Ûde¥i ¸mØz«j¦ÛØq¥}ÛqØÛÎà Stock Exchanges, the rates declared by Financial Benchmarks India Pvt. Ltd(FBIL) are used. q| |« j¦ i z«j¦t f} { | Î« f|j¦ i ,QYHVWPHQWVIRUZKLFKVXFKUDWHVTXRWHVDUHQRW ãØÛ^¥ àj¦¸|{¥Ø|z v«j¦d|z«Û available are valued as per norms laid down by qØÛÎàq|||Îà Reserve Bank of India, which are as under: ‡ j¦ ¸ }}§Ø } Ûv j¦ a Government / - On Yield to Approved securities Maturity basis. Ûj¦Ø}°ØãØ d{} b (TXLW\6KDUHV368 - At break-up Û e§tÛ °j¦ d} } and Trustee shares value (without }ÛidtÐtÛ }|¥ j¦| }°Ø considering ‘Revaluation |{ dµØ| Ø| } UHVHUYHV¶ LI DQ\ j¦ d| ÎÛ|« as per the latest d{j¦}||Î |ÎÛ Ø Balance Sheet (not more than }°Øj ¦}|Û 12 months old), otherwise Re.1 per company.

123 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Û }°}« f}§Ø¨¦vt}°vj¥¦ c Preference Shares - On Yield to 3DVV WKURXJK Maturity basis. }°yj¦«j¦ d} ÎØ }}§Ø } &HUWL¿FDWHV RWKHU with appropriate âvÖj¦ j¦{ ãj¦d{} than priority sector) Credit spread d{|Ø mark-up. i } d PSU Bonds - On Yield to Maturity basis vÛ }Ûi ¢|v¤ f}§Ø¨¦vt}°vj¥¦ with appropriate d} ÎØ }}§Ø } credit spread mark-up. ãj¦d{} e Units of Mutual - At the latest e¥ od Ü ¦v j¦Û }°Øj¦ q| j¦ { « Funds repurchase price ej¦e |{ ¸ mØ |Û|Ø / NAV declared by the Fund in }|k¥Ûzi|iÛ} respect of each ãØÛ^¥ àj¦j¦z|z¥«j¦d{}d|q¥j¦| scheme. 1RQSHUIRUPLQJ LQYHVWPHQWV DUH LGHQWL¿HG DQG |{¥Øj¦iqØÎàde«¾}°{|j¦iqØ depreciation/provision are made thereon based ÎàØj¦}° {| j¦|j¦d{} àj¦ãØÛ^¥ on the RBI guidelines. Based on management àj¦ j¦ z|z¥« j¦ d ãÛ dØ§Ø }°{| j¦Ø assessment of impairment, the Bank additionally creates provision over and above the RBI Îd|dq¥j¦}°ØãØ«j¦ {«id|q¥j¦|«} guidelines. The depreciation/provision on such ¾}°{|·j¦i^«td¢Ü¦|ÎÛ Îàq non-performing investments are not set off against Øj¦ãdÎ|kØ« q}°}Ø|ÎÛ ÎqØd|q¥j¦ the appreciation in respect of other performing securities. Interest on non-performing investments |«} q|ÎÛ |qØÎ LVQRWUHFRJQL]HGLQWKH3UR¿WDQG/RVVDFFRXQW zÛkd««|«j¦ {«ãØÛ^¥ àj¦ until received. In respect of Investments at Overseas Branches, j¦f|q |z«j¦z|z¥««qãÛkØ Reserve Bank of India guidelines or those of the Îf|j¦}|j¦qØÎf|kd«j¦« host countries, whichever are more stringent qiz««qzÎàqÎ j¦e¥|z¥tz|z¥ are followed. In case of those branches situated LQ FRXQWULHV ZKHUH QR JXLGHOLQHV DUH VSHFL¿HG |ÎÛ ÎàÎ ãØÛ^¥ àj¦j¦z|z¥«j¦}| the guidelines of the Reserve Bank of India are j¦qØÎ followed. |«j¦|Ø 3.3 Disposal of Investments CC}}§ØØj¦{Ø j¦¦}«lÛ¥j¦Øj¦ili|« 3UR¿W/RVVRQVDOHRI,QYHVWPHQWVFODVVL¿HGDV j¦Û ¨¦Û } Î| ãÎ| j¦ | {Ø +70FDWHJRU\LVUHFRJQL]HGLQWKH3UR¿W /RVV ãØdØlØ ÎÛj¦d{}ãÎ|k Account based on the weighted average cost / book value of the related Investments and an «qØÎØyCC}}§ØØj¦{Ø lÛ¥j¦« DPRXQWHTXLYDOHQWRISUR¿WRQVDOHRI,QYHVWPHQWV |j¦Û ¨¦Û}Øãj¦|} qÛlØ LQ³+HOGWR0DWXULW\´FODVVL¿FDWLRQLVDSSURSULDWHG dØkØ«qØj¦ÛlÛÎ to Capital Reserve Account. iiÜ¦iioiÜ¦tÛÛ |«j¦Û ¨¦ÛÎ| 3UR¿WORVV RQ VDOH RI ,QYHVWPHQW LQ $)6+)7 ãÎ|j¦ãÎ|kØ««}°ãØj¦qØÎ FDWHJRU\LVUHFRJQL]HGLQSUR¿WDQGORVVDFFRXQW }¥} 3.4 Repo/reverse repo àj¦ | } Øy ¥ } |z|« j¦ k j¦Ø j¦| The Bank has adopted the Uniform Accounting ÎØ ãØÛ ^¥ àj¦ ¸ ØÛ lÛ ij¦ | Procedure prescribed by the RBI for accounting k }°Û j¦ d}| Î ãØÛ ^¥ àj¦ of Market Repo and Reverse Repo transactions j¦ }} k d~Ûde¥iÜ¦idvÛ >,QFOXGLQJ WKH /LTXLGLW\$GMXVWPHQW )DFLOLW\ /$) with the RBI vide circular no. RBI/2016-17/FMOD. iidqÛ| z| j¦j¦ MAOG.No. /01.01.001/2016-17 Dated 15-09- d|}o|{q|{ iiiÜ¦ j¦d Øl¥Ø 2016. Repo and Reverse Repo Transactions Îi|z|«j¦j¦ØÎi}¥} Î« are treated as Collaterised Borrowing / Lending j¦ }Ç¥j¦f{hz|j¦d Øl¥Ø|qØÎq« Operations with an agreement to repurchase on ÎØ ØÕ } } j¦ j¦ j¦ qØ Î } j¦ the agreed terms. Securities sold under Repo are continued to be shown under investments and d|Øl¥Ø ¨¦Ûj¦Û}°ØãØ«j¦|j¦d|Øl¥Øz¥ Securities purchased under Reverse Repo are not qØÎd¥}}°ØãØ«j¦|«|ÎÛ

124 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

j¦qØÎlØi qj¦h qd included in investments. Costs and Revenues are j¦yyØk j¦Øj¦qØÎ accounted for as interest expenditure / income, as the case may be. |fØocÖ}°Ø|{ 3.5 Investment fluctuation reserve }°ØÜ¦ « cÖØÛ j¦ · ÎØ }¥}Ø }°Ø :LWKDYLHZWREXLOGLQJXSRIDGHTXDWHUHVHUYHV |{ Ø j¦| j¦ f´ ãØÛ ^¥ àj¦ | d}| to protect against increase in yields, RBI through }} d Ûde¥ vÛ Ûd| Û}Û circular number RBI/2017-18/147 DBR.No.BP. ÛÛz| j¦d}°j¦{ BC.102/21.04.048/2017-18 dated April 2, 2018, ãÛ àj¦«j¦ÏÛ¥de¥iÜ×¦d ||j¦Ûo| advised all banks to create an IFR with effect from zÛÎ the FY 2018-19. de¥iÜ×¦d«d ØØ||kØj¦ÎlÛ L ¥ Transferred to IFR will be lower of the following L QHW SUR¿W RQ VDOH RI LQYHVWPHQWV GXULQJ WKH j¦z||«j¦Û ¨¦Û}|ã LL ¥j¦|ã \HDURU LL QHWSUR¿WIRUWKH\HDUOHVVPDQGDWRU\ «d|¥|q|mtqiq Øj¦de¥iÜ¦dj¦Û appropriations, until the amount of IFR is at least | Ød{}ioiÜ¦tÛi iiÜ¦i}t¥Ü¦j¦ 2 percent of the HFT and AFS portfolio, on a j¦j¦Øj¦|ÎÛ ÎØÛ continuing basis. vt 3.6 Derivatives àj¦Ø¥|« qz«Øy®vt«vÛj¦Ø The Bank presently deals in interest rate and currency derivatives. The interest rate derivatives Î àj¦¸ÎØ qzvt«¦} q dealt with by the Bank are Rupee Interest Rate z}zÛ® qz}|tÐvv¦}i Swaps, Foreign Currency Interest Rate Swaps, q z ªo¥ Øy Ü¦v¥ t il°Û«t¤ Îà Exchange traded Rupee Interest Rate Future and àj¦ ¸ Î « q| ® Forward Rate Agreements. Currency Derivatives vt«d¢}|Øy®}d|tÐvv dealt with by the Bank are Options, Currency ®ªoÎà àj¦Ø|}j¦ÛdØ«i zØd«j¥¦t swaps and Exchange traded Currency Future. j ¦ltÐv li Îq lj¦ivttÐ q§|j¦ØÎ The Bank undertakes derivative transactions for market making/trading and hedging on-balance j¦| sheet assets and liabilities. ãØÛ^¥ àj¦j¦z|z¥j¦d{}vt 3.7 Valuation j¦ j¦||||j¦qØÎ¡ Based on RBI guidelines, Derivatives are valued Îq|¢|Îq j¥¦tj¥¦t Îdldl as under: j¦¢v¥ j¦i qØ Î Îq l j¦ } « |Ø vt The hedge/ non-hedge transactions are recorded d| {«j¦§v¥tj¥¦tj¦}«Ø Øj¦o|ÎØ|ÎÛ separately. Derivative contracts designated as j¦qØÎq Øj¦f|j¦Ûd ve| ldØ«j¦ hedges are not marked to market unless their §v¥tj¥¦t j¦ } « o|ÎØ |ÎÛ j¦ qØ qÎ underlying is marked to market. In cases where the underlying of the hedge is not subject to Îq lj¦Ûd ve ldØ«j¦j¥¦tj¥¦tj¦ mark to market, the hedging instrument is to be d{Û||ÎÛ ÎàÎq lkØj¦Ûl|}°¶Øj¦d{} accounted for on accrual basis. Trading derivative j¦Ûq|ÛÎÎq lj¦}«lÛ¥j¦Øvtd| { positions are marked to market and the resulting qÎ j¦ÛqØÛÎdqÎ §v¥tj¥¦t|ÎÛ Îf}o ORVVHV LI DQ\ DUH UHFRJQL]HG LQ WKH 3UR¿W DQG d{}j¦¢v¥j¦qØÎtÐv lvt}q| /RVV$FFRXQWDQG3UR¿WLIDQ\LVLJQRUHG,QFRPH §v¥tj¥¦t itÛi ÎØyj¦ÛãÛ}°j¦j¦ÛÎ| and expenditure relating to interest rate swaps are zj¦e¥ÎãÎ|kØ«zq¥j¦ÛqØÛÎãz recognized on the settlement date. Gains/ Losses j¦e¥Îj¦zq¥|ÎÛ j¦qØ qz} {Ø on termination of the trading swaps are recorded dØyz|j¦d{}zq¥ÎØÎtÐv l} on the termination date as immediate income/ j¦Û}ØÛ}ãÎ|}ØØy}dj¦ expenditure. }«zq¥j¦ÛqØÛÎ For the purpose of valuation, the fair value of the total swap is computed on the basis of the amount j¦|j¦ij¦}j¦Øj¦j¦Ûl| that would be receivable or payable on termination Ø|}j¦ÛØyj¦}j¦«j¦j¦ }Ø} of the swap agreements as on the Balance sheet }°}zj¦d{}j¦ÛqØÛÎ {ØÎ|« date. Losses arising there from, if any, are fully zÎ«j¦i}¥Ø¡}°{|j¦lÎq j¦ã« SURYLGHGIRUZKLOHWKHSUR¿WVLIDQ\DUHLJQRUHG j¦âvÖzlÎ The Bank follows the option premium accounting àj¦Ü¦ve¥¸|{¥Ød¢}|}°Ûk j¦|· Ø principle prescribed by FEDAI. Premium on option j¦ }| j¦Ø Î d¢}| tÐ q§| } }°Û j¦ transaction is recognized as income/expense on tÐ q§|j¦Û}Ø}¥}Ø}dj¦ expiry or early termination of the transaction. }«Ûj¦j¦qØÎ

125 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

d¢}|j¦¢|tÐ§tj¦´Î|}}°}Ø}°zÏj¦d¢}| The amounts received/paid on cancellation of option } Û le¥ }°}Ø« Î|« j¦ } « | qØ Î contracts are recognized as realized gains/losses on options. Charges receivable/payable on cancellation/ zÛ®z zd}j¦´Î|}Ø} termination of foreign exchange forward contracts }°}z}°ã«j¦´Î|}Øj¦ÛØÛkj¦d and swaps are recognized as income/expense on j¦}«Ûj¦Øj¦qØÎ the date of cancellation/ termination. qzªo¥ de¥diÜ¦ j¦ j¦|i§o«q¸ Valuation of Interest Rate Futures (IRF) is carried f} {j¦ile¥}°Øj¦|zj¦z|j¦rØ out on the basis of the daily settlement price of j¦d{}j¦qil each contract provided by the exchange. Ø|}j¦ÛØyj¦CÜ¦ve¥ ¸d{oØ| Contingent Liabilities on account of derivative zj¦ zã}zÛ®«vt zd«j¦ contracts denominated in foreign currencies are UHSRUWHGDWFORVLQJUDWHVRIH[FKDQJHQRWL¿HGE\ dj¦j¦zØd«j¦d Øl¥ØlÛ¥j¦Øj¦qØÎ FEDAI at the Balance Sheet date. dl± 4. ADVANCES ãØ«dl°«j¦|j¦d|j¦ zl{Î|dØ« $GYDQFHVLQ,QGLDDUHFODVVL¿HGDV6WDQGDUG Sub-standard, Doubtful or Loss assets and j¦¦}«lÛ¥j¦Øj¦qØÎØyej¦i} provision for advances are made as per z¥ }°{| j¦ â×vj¦ ãØÛ ^¥ àj¦ j¦ j¦}¥ the Prudential Norms of the RBI except as |z v« j¦ d| j¦ qØ Î zÛ kd« ¸ stated in para 4.3. In respect of Advances zilidl°«j¦ {«ãØÛ^¥ àj¦j¦|z¥«j¦ made in overseas branches, Advances are d|dyfzq«dl°ziliÎà«µ| FODVVL¿HG LQ DFFRUGDQFH ZLWK 3UXGHQWLDO Norms prescribed by the RBI or local laws |z v««qãÛj¦vÖ|z vÎj¦d|¦}lÛ¥j¦Øj¦ of the host country in which advances are qØÎ made, whichever is more stringent. dl° |z¥t h« } Î| j¦ }°{|« fo Ø 4.2 $GYDQFHV DUH QHW RI VSHFL¿F ORDQ ORVV q zl°Ø { q i }°}Ø z j¦ provisions, interest suspense, amount UHFHLYHG DQG KHOG LQ VXLW¿OHG 6XQGU\ |Î Deposits and Claims Received. ØØdãj¦¦}« àj¦|||kØ}°{|«j¦ 4.3 As a constant practice, the Bank has made j¦Î the additional provision on the following: • }°ØãØ tàvv¥dl°«j¦ij¦Û|j¦ x Provision @ 20% on the Secured Sub- standard Advances as against the dj¦Øj¦y|}j¦}°{| 5HJXODWRU\UHTXLUHPHQWRI • i|}Ûij¦q¥{j¦« j¦Û |{ ÎØ {d« } x Provision is made on Non-fund based ¨¦vt j¦|^¥| Ü¦§t ÛÛiÜ×¦ j¦ }°{| j¦ facilities of NPA Borrowers by applying 50% Credit conversion factor (CCF). The l }°{| l°Îj¦ j¦Û |{ d{Ø {d« j¦Û provision is based on the Asset class of dØ«j¦ÛÛ}d{ØÎ fund based facility of the Borrower x Bank has also made 100% provision • àj¦|f|qzi|}ÛikØ«j¦i}°{|ãÛ in respect of existing NPA accounts j¦iÎàqÎd{j¦}|yd }Ç¥j¦§ØÎà which are more than 6 months old and collateral free viz Auto Loan, Education qj¦d¢thh§ØlØh Loan and Personal Loan . • }ÏlÛ k j¦ i li h q }°ØãØ Îà x With respect to Loan against mortgage }Ç¥j¦ Øy¥d{j¦d|q¥j¦Îàj¦ of properties which are secured (collateral) and are NPA for more i àj¦|}°{|j¦iÎà than 2 years, Bank has made 100% provision •qzd|q¥j¦kØqtÐ§t¥t} x Bank has also made 100% provision tqÎ}|Îàj¦iãÛ àj¦| in respect of existing NPA accounts viz }°{|j¦iÎà Loan for Tractors/ tiller/ Power tillers which are 6 month old. }||¥{¥Ø}|l¥uØkØ«j¦ {«ãØÛ^¥ àj¦ 4.4 In respect of Rescheduled / Restructured j¦z|z¥«j¦d|}|l¥uØdl°«j¦foØ accounts, Provision for dimunition in fair «j¦Ûj¦i}°{|µ|ØÕ}dj¦| value of restructured advances is measured in net present value terms as per RBI j¦ØÎij¦qØÎ guidelines.

126 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

dØ }|l¥u| j ¦}|Û idÛ }°ØãØj¦ ,Q FDVH RI VDOH RI ¿QDQFLDO DVVHWV WR §teq| j ¦}|Û iÛ j¦ oÛ lÛ ÏÛ Asset Reconstruction Company (ARC) / Securitization Company (SC), the bank is dØ«j¦ àj¦ãØÛ^¥ àj¦¸qÛ following the guidelines issued by Reserve z|z¥ j¦ }| j¦ Î Î Ø¥| àj¦ ¸ Bank of India. At present, the guideline d|}|j¦qÎz|z¥ j¦d|z ¨¦Û followed by the Bank is that if the sale is | ÎÛ j¦ i| ÛÛ } j¦Û lÛ Î at a price below the net book value (NBV), dy¥Ø ÎÛ }°{|mtj¦ ØÎ| j¦Û (i.e. Book value less provisions held) the j¦zÕj¦Ûd{j¦ãi Î|kØ |j¦ VKRUWIDOO LV GHELWHG WR WKH SUR¿W DQG ORVV qØÎz ¨¦Û ÎÛqzÎØq¥ account in the same year. If the sale value j¦z|}°}ØÎØÛÎàd{§}°{|ãi is higher than the NBV, excess provision is Î|kØ }°ØØ¥Øj¦zÛqØÛÎà UHYHUVHGWRSUR¿W ORVVDFFRXQWLQWKH\HDU the amounts are received. àj¦«j¦ÏÛdØ«j¦Û ¨¦Ûj¦«dÎ ¨¦Û ,QFDVHRIVDOHRI¿QDQFLDODVVHWVWREDQNV | ÎÛj¦ i| ÛÛ dy¥Ø¤ ÎÛ« and the sale is at a price below the net book }°{|Îtj¦ }ÎØÎ|j¦f¥j¦ãi Î| value (NBV), (i.e. Book value less provisions KHOG WKHVKRUWIDOOLVGHELWHGWRWKHSUR¿WDQG kØ«|j¦qØÎz ¨¦Û ÎÛqz loss account in the same year. If the sale value ÎØd{§}°{|}°ØØ¥Ø|ÎÛ j¦ÛqilÛ j¦ is higher than the NBV, excess provision shall d|d|q¥j¦ÏÛdØ«j¦Û ¨¦Ûj¦j¦Îe¥Î| be not reversed but will be utilised to meet j¦Ûj¦}j¦|ifj¦f}lj¦qil the shortfall / loss on account of sale of other QRQSHUIRUPLQJ¿QDQFLDODVVHWV dzÜ~±|} 5 FLOATING PROVISIONS: àj¦ j¦ } dl°« |« i d| | }°q|« j¦ i dyÛ The Bank has a policy for creation and utilisation }°{|«j¦Ûij¦}¢ÛÎj¦iq|}°{|«j¦Ûj¦}°Ø¥ RI ÀRDWLQJ SURYLVLRQV VHSDUDWHO\ IRU DGYDQFHV j¦|j¦qØÎe|dyÛ}°{|«j¦f}lãØÛ^¥ àj¦ LQYHVWPHQWVDQGJHQHUDOSXUSRVHV7KHTXDQWXP RI ÀRDWLQJ SURYLVLRQV WR EH FUHDWHG LV DVVHVVHG j¦Û}¥|Øj¦}¢Û«z¥e¥le¥d{}yØ«j¦d Øl¥Ø HYHU\ \HDU 7KH ÀRDWLQJ SURYLVLRQV DUH XWLOLVHG dj¦j¦Ød«j¦iÎÛj¦qØÎ only for contingencies under extraordinary dodÙ¡ FLUFXPVWDQFHV VSHFL¿HG LQ WKH SROLF\ ZLWK SULRU permission of Reserve Bank of India. 6.1 }d|dodØ } }lØ }|¥ j¦Ø 6 FIXED ASSETS «qãÛÎ « oØ¾ddØ 3UHPLVHVDQGRWKHU¿[HGDVVHWVDUHVWDWHG Î|«zj¦e¥Îj¦mtj¦z¥lÎlØ« at historical cost (or revalued amounts, kÛzØydØj¦fj¦dãÛtf}lj¦io as the case may be), less accumulated depreciation and impairment losses, if any. yØ«|ÎØj¦Ûle¥j¦e¥d}lØtÎq Cost comprises the purchase price and iÛdØj¦ã«ãj¦¥ÛzØ cÖØÛÎ any attributable cost of bringing the asset ØdØ«}j¦ili zj¦j¦} qÛlØj¦qØ to its working condition for its intended Îdo }Ï«j¦Û ¨¦Û}°}Øã àj¦j¦ãi Î| XVH 6XEVHTXHQW H[SHQGLWXUH LQFXUUHG RQ assets put to use is capitalised only when kØj¦ãlÎØÎ LW LQFUHDVHV WKH IXWXUH EHQH¿W IXQFWLRQLQJ do }Ï«j¦}|¥ j¦| FDSDELOLW\ IURP RI VXFK DVVHWV 3UR¿W RQ sale of immovable properties are being o q j¦|z¥|ÎØdo }Ï«j¦}t¥Ü¦ IRUPHGSDUWRISUR¿WDQGORVVDFFRXQWRIWKH j¦}|¥ j¦|Ø j¦|j¦Ø¥¸d{j¦d{} Bank. j¦qØÎdodØ«j¦ÛÛ« àj¦j¦Ø 6.2 Revaluation of Fixed Assets dkd«}°|j¦j¦¥«tÜ¦j¦d« Portfolio of immovable properties is revalued periodically by an independent valuer to dzj¦}«f}lj¦Ûle¥ãÛãd v lj¦ UHÀHFW FXUUHQW PDUNHW YDOXDWLRQ $OO ODQG àj¦ j¦ d}| }« j¦ d Øl¥Ø lÛ¥j¦Ø j¦ qØ Î and building owned by the Bank and used }|¥ j¦|}j¦e¥·zÎØf} qÛ}°Ø DV EUDQFKHV DGPLQLVWUDWLYH RI¿FHV VWDII |{j¦d Øl¥Ø}|¥ j¦|}°Ø|{«qj¦qØ TXDUWHUV HWF DUH JURXSHG XQGHU %DQN¶V RZQ SUHPLVHV LQ ¿[HG DVVHWV FDWHJRU\ Î}|¥ j¦ØdØ}dØ§Ø¾j¦ãd Appreciation, if any, on revaluation is Î|kØ«}°ãØj¦qØÎØy}|¥ j¦|}°Ø|{ credited to Revaluation Reserve under Capital Reserves. Additional Depreciation

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d|q}°Ø|{«|qØj¦qØÎ RQWKHUHYDOXHGDVVHWLVFKDUJHGWRWKH3UR¿W and Loss Account and appropriated from the }««ãi |¥{Û|}«j¦j¦ Revaluation Reserves to Other Revenue lÎ Reserve. ~± Ù}|¡i¡d| 6.3 Premises include land and building under qi d|}°Ø|{«« ·z«j¦}°oØy|Û construction. j¦||« j¦ d| zÛ kd« d| l ¸ |¥Ø 7 RESERVES AND SURPLUS {j¦}°Ø|{«j¦j¦lÎ Revenue and other Reserves include Statutory Reserves created by foreign branches/ qj§}|¦ subsidiaries as per applicable local laws of the respective countries. d }l°Ü¦ zili zã¥j¦âvÖj¦ j¦ f}od{}|Ø¡k j¦Øj¦lÎ 8 REVENUE RECOGNITION zÛj¦¥«j¦«dj¦Ûl|fz 8.1 Income (other than item referred in Paragraph j¦j¦||j¦d|j¦ÛlÛÎqÎ }zÛj¦¥ 8.2)/ expenditure is generally recognised RQDFFUXDOEDVLV,QFDVHRIIRUHLJQRI¿FHV yØÎ income/ expenditure is recognised as per j¦Ûj¦ l t«k}«| the local laws of the country in which the zÛdz}j¦Û|dl° «} q UHVSHFWLYHIRUHLJQRI¿FHLVORFDWHG Øy j¦ Ü ¦v } dq¥Ø q j¦ âvÖj¦ 8.2 Income by way of Fees, all Commissions j¦ j¦Û| j¦ { d j¦ Û (other than on Government business), d{ } Î « qØ Î d| l« Commission on Guarantees, Letter of Credits, Exchange and Brokerage and §Øf}¨¦«ØyÎlÛj ¦}|«j¦« Interest on Advance Bills are accounted for }ã Øj¦}°}Øj¦d{}Î on realisation basis. Dividend on shares in «iqØÎà Subsidiaries, joint ventures and associates is accounted on realisation basis. l |}zØ dØ« |« } d j¦ l°Î 8.3 In view of uncertainty of collection of j¦Û d|ÅØØ j¦Û t ãØÛ ^¥ àj¦ j¦ income in cases of Non-performing Assets/ z|z¥«j¦d|¦}iÛdÜ¥¦Î|} Investments, such income is accounted ÎÛk j¦ØÎØÛÎ for only on realisation in terms of the RBI guidelines. qÎ Øj¦qk«i ã}t¤tzd}| /HDVHZKHUHULVNV UHZDUGVRIRZQHUVKLS }kØÎfÛqj¦k|j¦ Ûq j¦ DUH UHWDLQHG E\ OHVVRU DUH FODVVL¿HG DV d|}o|Ûqj¦}«lÛ¥j¦Øj¦qØ Operating Lease as per AS 19 (Leases). Lease payments on such lease are ÎiÛq}ÛqãlØ|«j¦k|j¦ UHFRJQLVHG LQ 3UR¿W /RVV $FFRXQW RQ Ûq j¦d|ÛqØ¥}tÐte|d{ a straight line basis over the lease tern in }ãdÎ|kØ«Ûj¦j¦qØÎ accordance with AS 19. 8.5 Appropriation of recoveries in NPA accounts : i|}ÛikØ««Ûj¦q|¡ Recoveries effected in the account (including i|}Ûi j¦ « « kØ« } } Îe¥ recovery under Public Money Recovery Act) «j¦|||qØj¦q|oÎ from time to time should be appropriated in q|{|Ûd{|j¦ØÎØÛÎØ the following manner: x towards all costs, commission, charges x ãÛlØ«j¦Û|}°ã«i àj¦¸ and expenses paid or incurred by the fuij¦ili«j¦}°Ø Bank x àj¦ } j¦ q dØ§Ø q x towards interest, additional interest, dlÛ qz vØj¦ qj¦}°Ø further interest, penal interest due to x {|j¦ãlØ|j¦i the Bank x towards payment of the principal zzv¨¦ÛkØ««Ûj¦|qØj¦ money q|oÎi 5HFRYHU\ LQ VXLW ¿OHG GHFUHHG DFFRXQWV • {ØdzØj¦|z«j¦d| should be appropriated: x As per the directives of the concerned • dzØj¦|z¥t|z«j¦dã«l Court. zzkØ«}yl x ,Q WKH DEVHQFH RI VSHFL¿F GLUHFWLYHV

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j¦¢}°e^i|ÛitÛ j¦}j¦{rØ from the Court, as applicable to non- VXLW¿OHGDFFRXQWV ¸Û Recovery by settlement through i|ÛitÛ j¦¢}°e^ q kØ j¦ compromise/NCLT Resolution: { j¦}rØj¦«Û In case of Resolution/Settlement through j¦j¦¢}°e^ qÛ j¦}rØj¦ÛØÕ NCLT or compromise sanctioned account, recovery should be appropriated j¦d|qØj¦q|oÎi as per the terms of compromise sanction/ j§¦o ¬j§ä resolution settlement. 9 EMPLOYEE BENEFITS ã|{ 9.1 PROVIDENT FUND àj¦d¢Ü¦ vÖz}ÛiÜ¦|«j¦d|ã|{ Provident fund is a statutory obligation as d z|q|ij¦ {j¦zØÎd àj¦}¥ per Bank of Baroda PF Rules as the Bank |{¥Øz«}|ÅØd z|j¦ãlØ|j¦ØÎ SD\V ¿[HG FRQWULEXWLRQ DW SUHGHWHUPLQHG àj¦j¦zØ|ÅØd z|Øj¦ÛØÎd z| rates.The obligation of the Bank is limited j¦ãi Î|kØ«}°ãØj¦qØÎ|{« WRVXFK¿[HGFRQWULEXWLRQ7KHFRQWULEXWLRQV j¦}° {| àj¦d¢Ü¦ vÖzã|{|¸j¦ DUH FKDUJHG WR 3UR¿W DQG /RVV $FFRXQW qØÎ The fund is managed by Bank of Baroda Provident Fund Trust. f}z| 9.2 GRATUITY àj¦ d¢Ü¦ vÖzf}z| |{ |« i |« Øy Gratuity liability is a statutory obligation f}z| ãlØ| d{| j¦ d| f}z| being higher of gratuity payment as per zØij¦ {j¦zØÎd¥j¦d Ø« oØ Bank of Baroda Gratuity Fund Rules and Regulations and Payment of Gratuity Act d{}ej¦}°{|j¦qØÎ àj¦¸ 1972. This is provided for on the basis of an eq|j¦if} {j¦ÛqØÛÎd actuarial valuation made at the end of the àj¦ d¢Ü¦ vÖz f}z| |{ | ej¦ }° {| ¿QDQFLDO\HDU7KHJUDWXLW\OLDELOLW\LVIXQGHG j¦ØÎ by the bank and is managed by Bank of Baroda Gratuity Fund Trust. }«| 9.3 PENSION àj¦d¢Ü¦ vÖzj¦¥oÛ}«||j¦d Øl¥Ø 3HQVLRQOLDELOLW\LVDGH¿QHGEHQH¿WREOLJDWLRQ }«|zØ {Øj¦¦}«kj¦ÛlÛÎd¥ under Bank of Baroda Employees Pension j¦d Ø« oØd{}ej¦}°{|j¦qØ Regulations 1995 and is provided for on the basis of actuarial valuation made at the ÎÎf|j¦¥o«j¦iÎq|Î |Øj¦ HQGRIWKH¿QDQFLDO\HDUIRUWKHHPSOR\HHV àj¦l°Îj¦Ûd}«|j¦j¦}Î àj¦d¢Ü¦ who have joined Bank up to 31.03.2010 vÖz j¦¥oÛ }«|Ü ¦v|¸eq|j¦i and opted for pension. The pension liability f} {j¦ÛqØÛÎ is funded by Bank of Baroda (Employees) Pension Fund Trust. q|j¦¥o | àj¦j¦fj¦ z New Pension Scheme which is applicable l°Îj¦ÛÎf|j¦i|e¥}«|q|}ãØd z| to employees who joined bank on or d{}lÎ àj¦¸}¥|{¥Ø|ÅØd z| DIWHU LV D GH¿QHG FRQWULEXWLRQ j¦ãlØ|j¦qØÎ àj¦j¦zØi}¥|{¥Ø VFKHPH%DQNSD\V¿[HGFRQWULEXWLRQDWSUH determined rate and the obligation of the d z|Øj¦ÎÛÛØÎd z|ãi Î|kØ %DQN LV OLPLWHG WR VXFK ¿[HG FRQWULEXWLRQ }°ãØj¦qØÎ 7KH FRQWULEXWLRQ LV FKDUJHG WR 3UR¿W DQG }°Ø}Ød|}yØ Loss Account. 9.4 COMPENSATED ABSENCES oØ}°Ø}Ød|}yØyf}q¥Ødj¦ }Ûi Accumulating compensated absences d oj¦Ø dj¦ j¦ ~Û j¦j¦ j¦| j¦ i such as Privilege Leave and unavailed sick oØj¦d{}}°{|j¦qØÎ leave are provided for based on actuarial d|j¦¥oÛã ÎØ valuation. 9.5 OTHER EMPLOYEE BENEFITS d| j¦¥oÛ ã y â¹Û |j¦zÛj¦ â¹Û 2WKHU (PSOR\HH EHQH¿WV VXFK DV /HDYH ØdØ§Ø Øãdzj¦i oØj¦ Encashment, Leave Fare Concession and d{}}°{|j¦qØÎ $GGLWLRQDO5HWLUHPHQW%HQH¿WRQ5HWLUHPHQW

129 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

zÛkd«j¦¥«j¦ zã¥«}°Ø|§Ø}j¦¥o« are provided for based on actuarial valuation. j¦âvÖj¦d|j¦¥o«j¦i {Øz«µ| ,QUHVSHFWRIRYHUVHDVEUDQFKHVDQGRI¿FHV WKH EHQH¿WV LQ UHVSHFW RI HPSOR\HHV RWKHU |«j¦d|ã«j¦dj¦|j¦qØÎ than those on deputation are valued and Ã accounted for as per laws prevailing in the respective territories. ãØ«dodØ«}¾j¦i}°{| 10 DEPRECIATION ||¥Ød|oâz«q|j¦fk 10.1 Depreciation on Fixed Assets in India [other j¦lÎj¦d ||kØt j¦d| than those referred in Paragraph 10.3 j ¦}|Ûd{|j¦Ûd|oÛ,,j¦d|}°{| and 10.4] is provided in accordance with Schedule II to the Companies Act, 2013, as j¦qØÎ}|¥ j¦ØdØ«j¦q|j¦ per following table, except in case of revalued i d||Ø f}l d{ j¦ d{ } ¾ assets, in respect of which depreciation is }°{|j¦qØÎ provided on the basis of estimated useful life of these revalued assets ¿ Effective ©§ ¿ Depre- Ü j§ ~±äÜ Sr. Rate of œÏ¢ÇÅ¡¸¸ Category ciation ¡ No. Deprecia- { Method tion Ü¦|Û¥oi Ü¦t l )851,785( 1. FITTINGS i Ü¦|Û¥oi Ü¦t l dkØ Written )XUQLWXUH )LW- a. 25.89% Down tings Value Û Ø|j¦j¦ } t d| dkØ Air-conditioning Written } tdz b. Plants, Other 18.1% Down Plant etc. Value Û Ø q ¢t dkØ Safe Deposit Written e¥§}«t c. 9DXOW(TXLS- 18.1% Down ments Value vÛ j¦|qÛ}j¦ti dkØ Cash Vans, Written Jeeps, Scooters d|Î| d. Down 2WKHU9H- Value z}ÎÎ| dkØ hicles - Two Written whe- 25.89% Down o}ÎÎ| dkØ elers Value - Four Written Whe- 31.23% Down e¥ j¦¥j¦f}j¦ dkØ elers Value Written 2I¿FH(TXLS- e. 45.07% Down ment àj¦j¦d}|} dkØ Value Written BANK'S OWN 2. Down PREMISES dÛÛÝ¦ o| dkØ Value Written – RCC Frame 4.87% Down Structure dÛÛ Ý¦ o| dkØ Value Written – Without RCC j¦ | 9.50% Down Frame Structure Value ãØ ÎdodØ«} |Ûod|oâz« 10.2 Depreciation on Fixed Assets outside ¥Øj¦âvÖj¦ Ây|Ûj¦||« {Ø India [other than those referred to in Para 10.3 below] is provided as per local laws z«}°oØ}°¨¦j¦d|j¦qØÎ or prevailing practices of the respective ãØdãØj¦ Îj ¦}t«¢ªt qj¦ territories. j ¦}tÎv¥j¦dã||d lÎ}ÂãØÛ 10.3 Depreciation on Computers and Software forming an integral part of Computer Hardware, ^¥ àj¦j¦z|z¥«j¦d|tÐte|{ in and outside India is provided on Straight

130 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

}°Ø¥j¦Ûz}°z|j¦lÎj ¦}t Line Method at the rate of 33.33% p.a., as per the guidelines of RBI. Computer software not ¢ªtqj¦Îv¥j¦d|¥d l|ÎÛ Îj¦ forming part of an integral part of hardware is Û{ÎÛãi Î|kØ }°ãØj¦qØÎ FKDUJHGGLUHFWO\WR3UR¿WDQG/RVV$FFRXQW itÛi}Âj¦}°{|tÐte|}·Ø 10.4 Depreciation on ATMs is provided on }°Ø¥j¦Ûzj¦qØÎ Straight Line Method at the rate of 20% p.a. 10.5 Depreciation on additions is provided }·¥|« } Â kÛz f}l j¦Û ØÛk proportionately from the date of purchase/ d|}Øj¦d{}f} {j¦qØÎ put to use. }t¤t}{ØqÛ|d}t¤t}{ØqÛ|}j¦ili 10.6 Cost of leasehold land and leasehold improvements are amortised over the period j¦j¦ÛlØ}t¤td{«oj¦Ø it¥e¥q j¦ÛqØÛÎ of lease dÙ¬j§Ã 11 IMPAIRMENT OF ASSETS do dØ« }|¥ j¦Ø dØ« ÎØ } Â Impairment losses (if any) on Fixed Assets (including Î|« zj¦e¥Î j¦dØ«j¦Âj¦ {«ot¥v¥ revalued assets) are recognised in accordance with ij¦f|t|td¢Ü×¦e v¸qÛk|j¦ CCdØ«j¦ AS 28 (Impairment of Assets) issued by the ICAI and Â j¦d|j¦qØÎØyeãi Î|kØ FKDUJHGRIIWR3UR¿WDQG/RVV$FFRXQW }°ãØj¦qØÎ The carrying amount of assets is reviewed at zd Øj¦ ÎÛj¦j¦«j¦d{}¾j¦j¦e¥zke¥ each Balance Sheet date if there is any indication zØÎØdØ«j¦ÛklØj¦Û}°Øj¦Ø|}j¦ÛØÛkj¦ of impairment based on internal/external factors. An impairment loss is recognised wherever the Ûj¦ÛqØÛÎ¾Î|j¦Û}Îo|Î£j¦ÛqØÛÎqÎ dØ« carrying amount of an asset exceeds its recoverable j¦ÛklØÛj¦Ûd{j¦ÎqØÛÎÛl amount. The recoverable amount is the greater dØ«j¦Û| ¨¦Ûdf}l«ÛqÎÛdØj¦ of the assets net selling price and value in use. In d{j¦ÎØÛÎf}l«ÛqÎÛdØj¦j¦|{¥ assessing value in use, the estimated future cash j¦Ød||Ø|j¦zÛ}°Îj¦f|j¦Ø¥|« t¤tj¦t ÀRZV DUH GLVFRXQWHG WR WKHLU SUHVHQW YDOXH XVLQJ DSUHWD[GLVFRXQWUDWHWKDWUHÀHFWVFXUUHQWPDUNHW j¦j¦qØÎej¦i}¥j¦ t¤tzj¦f}lj¦qØÎ assessments of the time value of money and risks qj¦d{ØddØ {Øqkj¦ VSHFL¿FWRWKHDVVHW$IWHULPSDLUPHQWGHSUHFLDWLRQ Ø¥| ^ j¦|j¦}°z¥Øj¦ØÎ¾j¦ zdØ«j¦ is provided on the revised carrying amount of the oÛÎe¥f}ld{j¦g}d|f} {j¦qØÎ asset over remaining useful life. {Ü¯¡Ï 12 FOREIGN CURRENCY TRANSACTIONS: 12.1 Accounting for transactions involving zÛ ® | {Ø Î« j¦ k j¦| foreign exchange is done in accordance ”zÛ®|z«j¦}Ø¥|j¦}°ã”, {Ø with Accounting Standard (AS) 11, ”The ãØÛ |zÛ kj¦ y| ¸ qÛ k|j¦ Effects of Changes in Foreign Exchange ii j¦d|}j¦lÎ Rates”, issued by The Institute of Chartered k |j¦ ii j¦ d| àj¦ j¦ zÛ ® Accountants of India. 12.2 As stipulated in AS-11, the foreign currency }o|« j¦ i ij¦Ûj¦Ø }o|« i ~Û }yj¦ RSHUDWLRQV RI WKH %DQN DUH FODVVL¿HG DV }o|« j¦ ¦} « lÛ¥j¦Ø j¦ l Î ãÛ zÛ a) Integral Operations and b) Non Integral kd«d¢Ü¦ àj ¦lej¦e«zÛd| l«j¦ Operations. All Overseas Branches, Offshore }yj¦ }o| i zÛ ® « m }o|« i Banking Units, Overseas Subsidiaries are }°Ø|{j¦¥«j¦ij¦Ûj¦Ø}o|j¦¦}«| treated as Non Integral Operations and domestic operations in foreign exchange qØÎ DQG 5HSUHVHQWDWLYH 2I¿FHV DUH WUHDWHG DV ij¦Ûj¦Ø}o|«j¦ {«d Ø¡ Integral Operations. i Î«j¦}°yj¦Ø}iÜ¦e¥vÛide¥¸oØ 12.3 Translation in respect of Integral Operations: j¦ÛlÛ}ØÎj¦dØz«}j¦v¥j¦qØÎ a) The transactions are initially recorded on weekly average rate as advised by ~Û zÛ ® | {Ø dØ i zØd« FEDAI. dj¦j¦zØd«ÎØ j¦Ü¦ve¥¸}°Øj¦ØÎÛ b) Foreign Currency Assets and Liabilities j¦d Ø«oØj¦ÛlÛ§q l}¢tz«}d ØØ (including contingent liabilities) are j¦qØÎ WUDQVODWHGDWWKHFORVLQJVSRWUDWHVQRWL¿HG Û }Û|d Ø«j¦Ûl|ddy E\)('$,DWWKHHQGRIHDFKTXDUWHU j¦¦}«j¦ÛlÛÎØye|Î«Øz|ãÎ| c) The resulting exchange differences are recognized as income or expenses

131 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

kØ«k j¦Øj¦lÎzÛ®dØ DQG DUH DFFRXQWHG WKURXJK 3UR¿W Loss Account. Any reversal / payment zØd« {Ûj¦ÛãÛãlØ|dy¥j¦ RIIRUHLJQFXUUHQF\DVVHWV OLDELOLWLHV }â}ØÎj¦ÛdØ§q lz«j¦d{} is done at the weekly average closing j¦lÎØy j¦i fqj¦ rate of the preceding week and the iãlØ|j¦lÎ¥j¦lÎj¦ difference between the outstanding Ûoj¦d Øj¦ãi Î|kØ«z¥lÎ ¿JXUH DQG WKH DPRXQW IRU ZKLFK UHYHUVDOSD\PHQWLVPDGHLVUHÀHFWHG vÛ }ÎØ{Ø j¦zÛ®Î^i z LQSUR¿WDQGORVVDFFRXQW zd«j¦Ø|}j¦ÛØyj¦CiÜ¦e¥vÛide¥ ¸ d) Foreign exchange spot and forward d{oØ zÎqi z q zz«i contracts outstanding as at the balance d|Ø}}§Ø zd«j¦Ce|t}tv z«} sheet date and held for trading, are marked qj¦o|ÎØj¦qØÎe}°j¦}°}Øj¦ÛlÛ to market at the closing spot and forward UDWHVUHVSHFWLYHO\QRWL¿HGE\)('$,DQGDW itÛij¦itÛij¦qz}ã| interpolated rates for contracts of interim qØÎeitÛij¦}ÛÛd{}Îqi z maturities. The MTM values thus obtained Î j¦ }|¥ j¦| ÎØf}l j¦ qØ Î are discounted to arrive at present value of ej¦Ü¦¦}z j¦|ãdyÎ|j¦ MTM. This MTM is used to revalue the spot ãi Î|kØ«j¦qØÎ and forward transactions on PV basis. The UHVXOWLQJ)RUZDUG9DOXDWLRQSUR¿WRUORVVLV d~ j§ LQFOXGHGLQWKH3UR¿W /RVV$FFRXQW e«ãØÛ|zÛkj¦ y| de¥Ûide¥ j¦k j¦| 13 TAXES ON INCOME |z v d}j¦«j¦k j¦| j¦d||{¥Ø · This comprise of provision for Income tax and deferred WD[FKDUJHRUFUHGLW UHÀHFWLQJWKHWD[HIIHFWVRIWLPLQJ d{j¦ikdØyj¦ldj¦ Ûoã||Ø differences between accounting income and taxable j¦«j¦}°ãj¦z¥ØÎi dj¦j¦i}°{|dylØj¦ income for the period) as determined in accordance with dy¨¦vtÎàdylØj¦j¦dj¦|dz|Ûi AS 22 (Accounting for taxes on Income) issued by ICAI. ko¥j¦Ûf|z«j¦ {«qj¦Ûij¦d{«|{¥ØÎØÛÎ Deferred tax is recognised subject to consideration of dqij¦dyd{j¦}ØÛ¥d{««}°ØØ¥|lÎàj¦ prudence in respect of items of income and expenses {|«kj¦j¦qØÎdylØj¦dØ«i zØd« those arise at one point of time and are capable of UHYHUVDOLQRQHRUPRUHVXEVHTXHQWSHULRGV'HIHUUHG }j¦j¦Ûl|d{|Øj¦z«}f|Õj¦Ûd}Øz« tax assets and liabilities are measured using enacted }j¦ÛqØÛÎq|Õ«e|j¦Û}°}Ø¥dy|Øj¦Û tax rates expected to apply to taxable income in the ã|ÎØÛÎdylØj¦zØd«i dØ«}j¦j¦Û years in which the timing differences are expected to z««}Ø¥|j¦}°ãj¦fd{j¦ÛdÛq«i be reversed. The effect on deferred tax assets and }Ø¥|j¦d{|Øj¦lÎ«Î «qØÎ liabilities of a change in tax rates is recognised in the income statement in the period of enactment of the ~±Ù dq¦} change. àj¦d{ãØi vetv}°Øe§tÛdq¥|j¦ãØÛ|zÛ 14 EARNINGS PER SHARE kj¦ y|¸e {«qÛk|j¦ii }°Ø 7KHEDQNUHSRUWVEDVLFDQGGLOXWHGHDUQLQJVSHUHTXLW\ d j¦d|}t¥j¦ØÎd{ãØ}°Ødq¥|j¦Ûl| share in accordance with the AS 20 (Earnings Per |dj¦Ûfd{j¦i j¦ãØdØe§tÛ«j¦Û 6KDUH LVVXHG E\ WKH ,&$, %DVLF HDUQLQJV SHU HTXLW\ share has been computed by dividing net income by the kãqØj¦j¦ÛlÛÎvetv}°Ødq¥|j¦Ûl| ZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJ |dj¦fd{j¦i j¦ãØdØe§tÛ« IRU WKH SHULRG 'LOXWHG HDUQLQJV SHU HTXLW\ VKDUH KDV i fd{j¦z|vetãe§tÛ«j¦Û kj¦ been computed using the weighted average number d{}j¦ÛlÛÎ RI HTXLW\ VKDUHV DQG GLOXWLYH SRWHQWLDO HTXLW\ VKDUHV outstanding during the period. ~±|}dj§j§{Ùi¡dj§j§dÙ¡ 15 PROVISIONS, CONTINGENT LIABILITIES AND ãØÛ|zÛkj¦ y|¸e {«qÛk|j¦ CONTINGENT ASSETS dj¦j¦zØd«i dj¦j¦dØ«j¦i}°{| j¦ As per AS 29 (Provisions, Contingent Liabilities and d| àj¦¸dj¦j¦zØd«i dj¦j¦dØ«j¦i Contingent Assets) issued by the ICAI, the Bank }°{|j¦lØ«Îe¥j¦Ûmt|j¦ifØ}||ÎiØ¥|zØ recognises provisions only when it has a present obligation as a result of a past event, it is probable j¦ij¦qØÎÎ ãÎj¦ezØj¦|Øj¦i WKDW DQ RXWÀRZ RI UHVRXUFHV HPERG\LQJ HFRQRPLF dy¥j¦ {|«j¦Ûdj¦ØÎdØ zØ|¥Î|ÎØiÛ EHQH¿WV ZLOO EH UHTXLUHG WR VHWWOH WKH REOLJDWLRQ j¦Ç|Ûdj¦|j¦qj¦ØÎ and when a reliable estimate of the amount of the obligation can be made.

132 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

dy¥j¦ ÎØ §Ø {|« j¦ Îl¥| j¦Û ã| j¦ Contingent liability is disclosed unless the possibility of lãl|Î|j¦ÛyØØj¦dj¦j¦zØd«j¦}°j¦t DQRXWÀRZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQH¿WLV j¦qØÎ remote. dj¦j¦dØ«j¦ÏÛ««}°ãØ|ÎÛ j¦qØÎ &RQWLQJHQW$VVHWV DUH QRW UHFRJQLVHG LQ WKH ¿QDQFLDO §«j¦ej¦}iÛdj¦|{¥j¦¦}«|j¦j¦ØÎ statements since this may result in the recognition of qj¦Ûj¦ãÛÛ ã|Î income that may never be realised. 16. Segment Reporting l¬t ~t¦ The Bank recognizes the Business Segment as the ãØÛ^¥ àj¦j¦z|z¥«j¦d|Øyde¥Ûide¥¸ Primary reporting segment and Geographical segment qÛk|j¦j¦d|}|« àj¦l«tj¦}°yj¦ as the Secondary reporting segment in accordance }tÕll«tj¦}«dãlj¦l«tj¦¸ØÛj¦}tÕl with the RBI guidelines and in compliance with the l«tj¦}«|ØzØÎ Accounting Standard 17 issued by ICAI. }j§{i¡}j§{j§Ù 17. CASH AND CASH EQUIVALENTS |j¦zi |j¦zj¦Ø«Îy«ditÛi«|j¦zÛãØÛ^¥ &DVK DQG FDVK HTXLYDOHQWV LQFOXGH FDVK LQ KDQG àj¦j¦}d{d| àj¦«j¦}d{d lØy and ATMs, balances with the Reserve Bank of India, d}o|}}°Øz zÛ®«|j¦zi |j¦zj¦Ø« balances with other banks and money at call and short notice (including effect of changes in exchange rates }°ãÛ|z««}Ø¥|j¦j¦ØÎi Î RQFDVKDQGFDVKHTXLYDOHQWVLQIRUHLJQFXUUHQF\

133 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 d}oÜk¡~ t~~¡ 6FKHGXOH1RWHVRQ$FFRXQWV i ãØÛ^¥ àj¦j¦Ûd}d j¦d|}°j¦tÛj¦ A. Disclosure in terms of RBI requirements i } qÛ A-1 Capital (` j¦vÖ / ` in Crores) Particulars o¦ }â¥ &XUUHQW

134 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement i | A-2 Investments (` j¦vÖ / ` in Crores) Particulars o¦ }â¥ &XUUHQW

135 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

o¥j¦}Ø¥j¦z|}d¥}ØÎØ oÛi kÛzÛle¥}°ØãØ j¦: The details of securities sold and purchased under repos and reverse repos during the year ending March 31, 2018: Particulars ¥j¦z| ¥j¦z| ¥j¦z|z|j¦ o¥j¦ ||Ø j¦ d{j¦Ø j¦ dØ j¦ j¦ Minimum Maximum Daily Average Outstanding outstanding outstanding outstanding as on March during the year during the year during the year 31, 2018 }j¦ØÎØ oÛlÛ}°ØãØ Securities sold under repo L j¦Û}°ØãØ i. Government securities 109.56 34,015.12 2,232.93 27,590.17 LLj¦}¥th}°ØãØ ii. Corporate debt securities 913.01 1,313.54 1,050.10 1,313.54 ¥}j¦ØÎØkÛzÛ Securities purchased under lÛ}°ØãØ reverse repo L j¦Û}°ØãØ i. Government securities 124.29 41,792.29 17,217.02 4,900.00 LLj¦}¥th}°ØãØ ii. Corporate debt securities |Nil |Nil |Nil |Nil i liid|}t¥Ü¦ A-2.2 Non-SLR Investment Portfolio L o¥j¦liid| j¦qÛj¦Ø¥mtj¦|||Î: i) Issuer composition of Non SLR investments as on March 31, 2019 is given below: (` j¦vÖ / ` in Crores) ¨¦ qÛj¦Ø¥ Issuer |qÛ} t C|l°vj¦|Ûo j¦Û Cd|tv CdoÛ · Amount j¦ÛÛ }°ØãØ j¦ÛÛ }°ØãØ j¦Û }°ØãØ j¦Û S. Extent of Extent of ‘Below Û Û No. Private Investment Grade’ Extent of Extent of Placement securities ‘Unrated’ ‘Unlisted’ Securities Securities (1) (2) (3) (4) (5) (6) (7) (i) }Ûi PSUs 1,428.44 44.90 |Nil |Nil |Nil (ii) iÜ¦de¥ FIs 5,979.67 4,969.59 162.68 | 25.00 (iii) àj¦ Banks 4,918.03 919.13 195.00 130.38 69.15 (iv) |qÛj¦}¥t Private Corporate 3,985.23 2,111.80 123.35 856.31 9.00 (v) d| l Subsidiaries/ Joint §Øfµ Ventures * 3,610.11 3610.11 |Nil |Nil |Nil (vi) d| Others # 16,250.31 12,292.40 Nil 108.49 69.15 (vii) ¾ÎØ{Ø Provision held }°{| towards depreciation 1,962.15 |Nil |Nil 236.03 22.95 ˆºÅ¥¸ Total * `2,185.58j¦vÖj¦zÛd| l | Î * Includes investment in Overseas Subsidiary of ` 2,185.58 Crore. # ‡) j¦Û ¢|v«j¦vÖj¦| Î # a) includes Investments in Government bonds of Rs.14,591.39 crores o¥Øj¦liid|«j¦ÛqÛj¦Ø¥ o||ÛozÛle¥Î¡ *Issuer Composition of non- SLR investments as on March 31, 2018 is given below: (` j¦vÖ / ` in Crores) ¨¦ qÛj¦Ø¥ Issuer |qÛ} t C|l°vj¦|Ûo j¦Û Cd|tv CdoÛ · Amount j¦ÛÛ }°ØãØ j¦ÛÛ }°ØãØ j¦Û }°ØãØ j¦Û S. Extent of Extent of ‘Below Û Û No. Private Investment Grade’ Extent of Extent of Placement securities ‘Unrated’ ‘Unlisted’ Securities Securities (1) (2) (3) (4) (5) (6) (7) (i) }Ûi PSUs 840.50 293.71 50.94 0.00 197.86

136 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

(ii) iÜ¦de¥ FIs 6964.22 2741.92 220.37 0.00 25.00 (iii) àj¦ Banks 4626.00 419.98 170.00 123.41 65.18 (iv) |qÛj¦}¥t Private Corporate 3774.41 1875.94 170.95 839.61 11.40 (v) d| l Subsidiaries/ Joint §Øfµ Ventures * 2035.38 2035.38 0.00 0.00 0.00 (vi) d| Others # 11980.88 7564.78 0.00 65.18 65.18 (vii) ¾ÎØ{Ø Provision held }°{| towards depreciation 1847.29 0.00 0.00 228.62 22.84 ˆºÅ¥¸ Total * `906.73j¦vÖj¦zÛd| l | Î *Includes Investments in Overseas Subsidiaries of Rs.906.73 Crore. # j¦Û ¢|v 5969.31j¦vÖj¦| Î # includes Investments in GOI Non SLR oil bonds of Rs.5969.31 crores iL liid| j¦qÛj¦Ø¥mtj¦ ii) Non performing Non-SLR investments (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year }° ãj¦ Opening balance 1,947.75 879.50 ¥j¦z|}{¥| Additions during the year 452.22 1,081.71 ¥j¦z|j¦tØ Reductions during the year 750.76 13.46 d Ø Closing balance 1,649.21 1,947.75 j¦{Ø}°{| Total provisions held 1,484.53 1,428.92 i ¥j¦}° ã }}§ØØj¦{Ø iotÛi Û kli| j¦ ÎÛj¦dØ§Øj¦}}§ØØj¦{Ø iotÛi kli| j¦Û ¨¦Ûi d Ø A-2.3 Sales and transfer of Investment held under Held to Maturity (HTM) Category in excess of 5% of the Book value of the investment held in HTM category at the beginning of the year (` j¦vÖ / ` in Crores) ÏÛ¥ | iotÛi j¦ ¥j¦z| qv× | iotÛi j¦ | iotÛi Ûj¦ Financial Year }° ãj¦ ¨¦Ûd Ø Addition d Ø ^ Opening Bal. of Sale/ Closing Bal. of Market value of investment (HTM) transfer Investment investment (HTM) during the (HTM) category year 2018-19 |Nil |Nil |Nil |Nil |Nil 2017-18 |Nil |Nil |Nil |Nil |Nil i iid| A-2.4 SLR Investments (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year ÎÛ q ÎÛ q Book value Market value Book value Market value j¦Û}°ØãØ Govt. sec SLR(CG,SG,&TB) * 1,48,087.16 1,48,087.16** 1,34,809.16 1,34,809.16** iid ÛqÛiqÛtÛ Û d|zØ}°ØãØ iid Approved sec-SLR 1.28 1.28 1.28 1.28

137 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

e«ÛÛde¥iiÛi§ie¥i|ie¥j¦}kÛiid}°ØãØ Îà iidj¦Ûl|j¦i q ·j¦{| |ÎÍlÎ * incl. SLR Securities kept with CCIL/ MCX / USE / NSE ** Appreciation in market value is ignored for SLR calculation i iqÛiÜ¦Õj¦tiq|}liliz vj¦}°j¦tÛj¦ A-2.5 Disclosure on imposition of penalty for bouncing of SGL forms }Ø¥ iqÛiÜ¦¢¥t|j¦ÛØÛk t}}Û Year ended Date of bouncing SGL form Amount Remarks 2018-19 |Nil |Nil |Nil 2017-18 |Nil |Nil |Nil i vÛt izzrØ qz} A-2.6 Derivatives A-2.6.1 Forward Rate Agreement/ Interest Rate Swap (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year L }rØj¦Ûj¦}Ø The notional principal of swap agreements 42,267.76 26,509.49 LL rØ j¦ ØÎØ d}|Û }°Ø ·Ød j¦ Losses which would be incurred if 377.49 197.88 j¦f t}tÛ¥¸}|j¦|}Î|Û FRXQWHUSDUWLHV IDLOHG WR IXOÀOO WKHLU Î| obligations under the agreements LLL } d|} àj¦j¦id}Ø }Ç¥j¦ Collateral required by the bank upon |Nil |Nil entering into swaps LY }fØ}||hqkj¦ j ¦® Concentration of credit risk arising from 829.06 506.46 the swaps Y } ÎÛj¦foØ The fair value of the swap book 38.75 19.45 o¥Øj¦zi qz}j¦}°j¦i Ø¥|ÛozÛle¥Îà¡ Nature and terms of Forward Rate Agreements and interest rate swaps as on 31st March 2019 are given below: kØ }°j¦ k d||Ø{| «oj¥¦ ØÕ Instruments Nature Nos Notional Benchmark Terms Principal de¥di tÐv l 4 175.00 ,1%0. dyÛ}°}yÛz IRS Trading )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di Îq l 18 2,005.50 /,%25 yÛ}°}dyÛz IRS Hedging )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di tÐv l 1 172.89 /,%25 yÛ}°}dyÛz IRS Trading )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di Îq l 6 484.08 /,%25 dyÛ}°}yÛz IRS Hedging )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di tÐv l 1 172.89 /,%25 dyÛ}°}yÛz IRS Trading )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di tÐv l 323 9,792.10 0,%25 yÛ}°}dyÛz IRS Trading )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di Îq l 162 5,625.00 0,%25 dyÛ}°}yÛz IRS Hedging )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di tÐv l 324 10,108.15 0,%25 dyÛ}°}yÛz IRS Trading )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH

138 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

de¥di Îq l 52 2350.00 0,)25 yÛ}°}dyÛz IRS Hedging )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di tÐv l 9 425.00 0,)25 yÛ}°}dyÛz IRS Trading )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di Îq l 25 675.00 0,%25 yÛ}°}dyÛz IRS Hedging )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di tÐv l 9 425.00 0,)25 dyÛ}°}yÛz IRS Trading )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH Ûde¥di Îq l 4 700.40 0,%25/,%25 dyÛ}°}dyÛz CIRS Hedging 3D\)ORDWLQJ5HFHLYH)ORDWLQJ Ûde¥di Îq l 1 268.98 5HFHLYH86'0/,%253D$850 dyÛ}°}dyÛz CIRS Hedging (,(85 3D$ORDWLQJ5HFHLYH)ORDWLQJ Ûde¥di Îq l 1 121.15 5HFHLYH*%30/,%253D$850 dyÛ}°}dyÛz CIRS Hedging (,(85 3D$ORDWLQJ5HFHLYH)ORDWLQJ de¥di Îq l 6 466.73 /,%25 dyÛ}°}yÛz IRS Hedging )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di Îq l 9 5,473.48 /,%25 dyÛ}°}yÛz IRS Hedging )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di Îq l 3 2,826.41 /,%25 dyÛ}°}yÛz IRS Hedging )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH

o¥j¦zzrØd qz}j¦Û}°Ïi Ø¥||d|Îà¡ Nature and terms of Forward Rate Agreements and interest rate swaps as on 31st March 2018 are given below: kØ }°j¦ k d||Ø «oj¥¦ ØÕ Instruments Nature Nos {| Benchmark Terms Notional Principal de¥di Îq l 2 114.50 (850/,%25 yÛ}°}ØdyÛz IRS Hedging 5HFHLYH)L[HG3D\)ORDWLQJ de¥di tÐv l 4 175.00 ,1%0. dyÛ}°}yÛz IRS Trading )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di Îq l 18 1,890.08 /,%25 yÛ}°}dyÛz IRS Hedging )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di tÐv l 3 207.69 /,%25 yÛ}°}dyÛz IRS Trading )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di Îq l 6 456.23 /,%25 dyÛ}°}yÛz IRS Hedging )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di tÐv l 3 207.69 /,%25 dyÛ}°}yÛz IRS Trading )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di tÐv l 196 5,563.50 0,%25 yÛ}°}dyÛz IRS Trading )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di Îq l 70 2,175.00 0,%25 dyÛ}°}yÛz IRS Hedging )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di tÐv l 192 5,633.15 0,%25 dyÛ}°}yÛz IRS Trading )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH de¥di Îq l 19 900.00 0,)25 yÛ}°}dyÛz IRS Hedging )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH

139 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

de¥di tÐv l 10 450.00 0,)25 yÛ}°}dyÛz IRS Trading )L[HG5HFHLYDEOH)ORDWLQJ3D\DEOH de¥di tÐv l 10 450.00 0,)25 dyÛ}°}yÛz IRS Trading )ORDWLQJ5HFHLYDEOH)L[HG3D\DEOH Ûde¥di Îq l 1 1384.16 5HFHLYH*%30/,%253D\86'0/,%25 dyÛzdyÛ}°}Ø CIRS Hedging Pay Floating Receive Floating Ûde¥di Îq l 2 397.69 5HFHLYH86'0/,%253D$850 dyÛzdyÛ}°}Ø CIRS Hedging (85,%25 3D$ORDWLQJ5HFHLYH)ORDWLQJ Ûde¥di Îq l 1 103.22 5HFHLYH86'0/,%253D$850 dyÛzdyÛ}°}Ø CIRS Hedging (85,%25 3D$ORDWLQJ5HFHLYH)ORDWLQJ de¥di Îq l 8 604.66 86'0/,%25 yÛzdyÛ}°}Ø IRS Hedging 3D\)L[HG5HFHLYH)ORDWLQJ de¥di Îq l 4 201.04 86'0/,%25 yÛzdyÛ}°}Ø IRS Hedging 3D\)L[HG5HFHLYH)ORDWLQJ de¥di Îq l 9 5595.88 86'0/,%25 yÛ}°}ØdyÛz IRS Hedging 5HFHLYH)L[HG3D\)ORDWLQJ 26,509.49 ii§o qtÐvv qzvÛt A-2.6.2 Exchange Traded Interest Rate Derivatives (` j¦vÖ / ` in Crores) ¨¦ Particulars o¥ }â¥ S. No. Current Year Previous Year (i) ¥ j¦ z| i§o«q tÐvv q Notional principal amount of exchange z vÛt j¦Û j¦}Ø traded interest rate & Currency kØ derivatives undertaken during the year (instrument-wise) i qzªo de¥diÜ¦ A. Interest Rate Future (IRF) 12,180.64 18,786.47 ~Û j¦ Ûªo¥ B. Currency Futures 62,044.60 46,189.24 Û d¢}| C. Options 18,079.92 2,431.66 (ii) y z| j¦ i§o«q tÐvv q z Notional principal amount of exchange j¦ Û vÛt j¦Û kØ j¦ traded interest rate & Currency derivatives outstanding as on j¦}Ø (instrument-wise) i qzªo de¥diÜ¦ A. Interest Rate Future (IRF) 0.00 0.00 ~Û j¦ Ûªo¥ B. Currency Futures 0.00 0.00 Û d¢}| C. Option 1,590.39 127.48 (iii) i§o qtÐvv qzj¦ ÛvÛt Notional principal amount of exchange j¦Û j¦ j¦}Ø Øy q traded interest rate & Currency | | CCdØ{j¦}°ãÛ |Î kØ derivatives outstanding and not “highly NIL NIL effective” (instrument-wise) (iv) j¦ i§o q tÐvv q z j¦ Û Mark-to-market (MTM) value of vÛtj¦j¥¦tj¥¦tØyq exchange traded interest rate & | | CCdØ{j¦}°ãÛCC|Î kØ Currency derivatives outstanding and NIL NIL not “highly effective” (instrument-wise)

140 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement ivÛt«qki§}qj¦}°j¦tÛj¦ A-2.6.3 Disclosures on risk exposure in derivatives L lØj¦}°j¦tÛj¦ àj¦j¦Ø|}«|d||ÛØ«vÛt|z|j¦j¦Õj¦iãÛ}°j¦j¦ÛÏÛvÛtkØ«j¦}°j¦Øi f}ld|z|}°¨¦ Øyd}|}qÛ|tt¢}¢tØyj¦f|t}tÛ¥i§}qtqÛÛi |{¥Øj¦ÛlÛÎà àj¦d}|Ø|}«z¥ilidyz¥i| liqk«j¦ÛÎq lj¦iØy ^d{Øj¦|j¦iÏÛvÛt|z|«j¦f}lj¦ØÎØ¡fØ}zqkj¦}°Ø oy lØj¦j¦|Øyi|z|««}°ØÜ¦ cÖ|i }°}etÛtÐv lj¦if}l«iqØÎà àj¦«q|qk«j¦Ûã| |ÛÎØÛÎÎà¡hqk qqkzÛqkd}o|qk àj¦ qk}° {||ÛØ àj¦j¦|zj¦ v¸d|zØ ÎàqitÛiqk}j¦ÛØ Ûid Øy}ÛÛj¦{|Ød{}} ÎÛ«|z|«j¦ÛÏÛqk«j¦dj¦| ØyfoØqkÛi Øj¦|j¦iØj¦ÛlÛÎàe|j¦Û àj¦j¦qk}° {|ãl¸}Ç|Ûi dµØ|}° {|o|}°« ¸|l|Ûj¦ÛqØÛÎØye « àj¦j¦d{i }° {|zj¦j¦Ûd{ØÛ|zj¦«j¦Ûqk}° {|Øj¦dlØj¦qØÎ |z|«j¦Ûj¦f t}t¥ àj¦Øyj¦}¥t}°Øu|Îàd|zØi§}qÛd«j¦d Øl¥ØÎj¦iqØÎàvÛtfØ}z«}hqkdj¦Ø j¦|j¦i àj¦|ãØÛ^¥ àj¦¸|{¥Øqzi§}q}·Øj¦d}|Îqj¦d| àj¦j¦}°Øy}|lØj¦l ãÛ zd« j¦j¦Øj¦ÎØj¥¦tj¥¦t¸}°}Øj¦|dy¥Ø¤q àj¦j¦j¦f t}tÛ¥{|}°}Øj¦|Î Øyhqk«ã«Î| ã }Ø¥|«j¦Ûqj¦Ûl| zj¦Ûj¦j¦}Ø}}§Øj¦d| {Øh¦} Ømtj¦«j¦ylj¦j¦}j¦Øj¦ÛqØÛ Î|||Î¡ (i) Qualitative Disclosure 7KH 2II %DODQFH 6KHHW 3ROLF\ RI WKH EDQN OD\V GRZQ WKH W\SHV RI ÀQDQFLDO GHULYDWLYH LQVWUXPHQWV VFRSH RI XVDJHV DSSURYDO procedures and the limits like open position limits, stop loss limits and counter party exposure limits for undertaking derivative WUDQVDFWLRQ7KHEDQNXVHVÀQDQFLDOGHULYDWLYHWUDQVDFWLRQVIRUKHGJLQJLWVRQRURIIEDODQFHVKHHWH[SRVXUHVDVZHOODVIRUPDUNHW making. Basically, these products are used for hedging risk, reducing cost and increasing the yield in such transactions and for proprietary trading. The types of risk to which the bank is exposed to are credit risk, market risk, country risk and operational risk, The Bank has risk PDQDJHPHQWSROLFLHV DSSURYHGE\%RDUGRI'LUHFWRUVRIWKH%DQN ZKLFKLVGHVLJQHGWRPHDVXUHWKHÀQDQFLDOULVNVIRUWUDQVDFWLRQV in the trading book on a regular basis, by way of MTM, Value at Risk (VaR) and PV01, and to set appropriate risk limits. These are monitored by means of reliable and up to date Management Information Systems by the Risk Management Department of the Bank IURPWLPHWRWLPHZKRLQWXUQDSSUDLVHVWKHULVNSURÀOHWRWKH5LVNPDQDJHPHQW&RPPLWWHHRI'LUHFWRUVZKLFKLVSUHVLGHGRYHUE\ the Bank’s Managing Director. The counter parties to the transactions are banks and corporate entities. The deals are done under approved exposure limits. The bank has adopted the current exposure method prescribed by Reserve Bank of India for measuring Credit Exposure on Derivative products as per which the bank sums the total replacement cost (obtained by mark to market of all its contracts with positive value i.e. when the bank has to receive money from the counter party) and an amount for potential future changes in credit exposure calculated on the basis of the total notional principal amount of the contract multiplied by the relevant credit conversion factors according to the residual maturity as detailed herein under: j¦}Ø}lj¦q|¦} Ømtj¦ Conversion factor to be applied on notional principal amount dt}}§Ø Residual Maturity qz z |z z Interest Rate Contract Exchange Rate Contract ij¦¥j¦ Less than one year 0.50% 2.00% ij¦¥} o¥ 2QH\HDUWRÀYH\HDU 1.00% 10.00% } o¥d{j¦ 2YHUÀYH\HDUV 3.00% 15.00% ÎqØylÎq tÐv l |z|«j¦dlzq¥j¦qØÎqÎ ÎÎj¥¦tj¦¥tj¦d{Û||ÎÛ ÎÎq lvtf}od{}Î «i qØÎàtÐv lvt}q| j¥¦tj¦¥t qØÎd}¦}ãi Î|kØ«zj¦e¥Î|ÎÎ «qØÎãz j¦e¥Î|ÎÛ |qØÎ qz} {Ødd|}t|j¦ÛØÛk}Î «iqØÎàtÐv l}j¦}ØÎ|}ãÎ|}Ø j¦ÛØÛk}dj¦¦}«zq¥j¦iqØÎà

141 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

The hedge/non-hedge (market making) transactions are recorded separately. In cases where the underlying is not subject to mark to market the hedging derivatives are accounted for on an accrual basis. Trading derivative positions are marked-to- PDUNHW 070 DQGWKHUHVXOWLQJORVVHVLIDQ\DUHUHFRJQL]HGLQWKH3URÀWDQG/RVV$FFRXQW3URÀWLIDQ\LVQRWUHFRJQL]HG ,QFRPHDQG([SHQGLWXUHUHODWLQJWRLQWHUHVWUDWHVZDSVDUHUHFRJQL]HGRQWKHVHWWOHPHQWGDWH*DLQVORVVHVRQWHUPLQDWLRQRI the trading swaps are recorded on the termination date as income/expenditure. LL Øj¦}°j¦tÛj¦ (ii) Quantitative Disclosures (` j¦vÖ / ` in Crores) ¨¦ Particular o¥ }â¥ S. Current Year Previous Year No. j¦«Ûvt qzvt j¦«Ûvt qzvt Currency Interest rate Currency Interest rate Derivatives Derivatives Derivatives Derivatives (i) vt j¦}Ø Derivatives (Notional Principal Amount) i Îq lj¦i a) For hedging 390.13 20,606.61 1,885.07 11,937.39 ~Û tÐv lj¦i b) For trading 1,590.39 21,271.02 6,378.68 12,687.03 (ii) §v¥tj¥¦tyØ Marked to Market Positions i dØ a) Asset (+) 33.83 345.50 118.37 112.87 ~Û zØi b) Liability (-) -21.76 -318.81 -58.26 -153.72 (iii) hqk Credit Exposure 79.07 767.74 252.72 351.94 (iv) qz«ij¦}°ØØ Likely impact of one Î|}Ø¥| percentage change j¦ ãØ}°ã in interest rate }ÛÛ (100*PV01) i Îq lvt a) on hedging -0.08 130.61 18.39 -65.73 } derivatives ~Û tÐv lvt b) on trading |Nil 0.61 |Nil 2.70 } derivatives (v) ¥j¦z|}ili Maximum and d{j¦ØØy||Ø Minimum of 100*PV01 }ÛÛ observed during the year i Îq l} a) on hedging 0&0 124.50&9.66 21.12&0 71.70&26.46 ~Û tÐv l} b) on trading 0&0 6.97&0.04 0&0 33.52&0.05 Û Îq l} zÛ c) on hedging 0.04&-0.11 11.27&5.86 0.85&-0.83 8.64&-55.73 (Overseas) vÛ tÐv l} zÛ d) on trading 0&0 0&0 0&0 0&0 (Overseas) ihoj¦} ÛvÛi A.2.6.4 Credit Default Swaps (CDS) j¦|}°ÛÛvÛi}ãØÛ^¥ àj¦j¦z| j¦j¦z|z¥«j¦d| àj¦«j¦d}|ÛÛvÛi zdj¦ j¦| ÎØiÜ¦de¥iivÛi¸}°j¦Øz|j¦ÛvÛij¦¥dyed{j¦ Ø j¦|Î|}j¦Ûd|Ø¢vj¦f}lj¦| dj¦Îd}|ÛÛvÛiyØ«j¦ j¦|j¦iÎ àj¦iÜ¦de¥iivÛij¦¥j¦ÎÛf}lj¦ØÎÛvÛi j¦|j¦i àj¦ j¦Ûd Øj¦Ø¢vj¦f}l|ÎÛ j¦ØÎµ}zo¥j¦Îj¦e¥ÛvÛivÛ j¦|ÎÛÎ Valuation Methodology- As per RBI guidelines on CDS dated 23rd May, 2011 the banks are required to value their CDS contracts by using daily CDS curve published by FIMMDA or any other proprietary model if it results in a more conservative valuation. The Bank uses the FIMMDA curve for valuing our CDS positions, the Bank do not use any internal proprietary model for CDS valuation. However, the Bank do not have any CDS deal outstanding as of 31st March 2019

142 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement i dØlÏ A-2.7 Asset Quality id|q¥j¦dØ A-2.7.1 Non Performing Assets i d|q¥j¦dØ«j¦ o| A. Movement of NPAs (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year j¦i|}Ûi }° ãj¦ Gross NPAs (Opening Balance) 56,480.38 42,718.70 ¥j¦z|qvÖ |ii|}Ûi Additions (Fresh NPAs) during the year 13,613.61 24,152.34 f}qvÖ i Sub-total (A) . 70,093.99 66,871.04 mti ¡ Less:- L d}l°v| (i) Up-gradations 819.61 1,025.74 LL d}l°vj¦ilikØ« (ii) Recoveries (excluding recoveries 7,939.78 4,416.73 Îe¥«j¦âvÖj¦ made from upgraded accounts) LLL t¤tkØvÛlÛ (iii) Write-offs 13,101.84 4,948.19 |d Øj¦j¦j¦ (including exchange differences) f}l Û Sub-total (B) 21,861.23 10,390.66 j¦i|}Ûi d Ø i Û Gross NPAs (Closing Balance) (A-B) 48,232.76 56,480.38 ~Û d|q¥j¦dØ B. Non-Performing Assets (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year (i) |dl°««|i|}Ûi (i) Net NPAs to Net Advances (%) 3.33 5.49 (ii) i|}Ûij¦ o| j¦ (ii) Movement of NPAs (Gross) i }° ãj¦ (a) Opening balance 56,480.38 42,718.70 ~Û ¥j¦z|}{¥| (b) Additions during the year 13,613.61 24,152.34 Û ¥j¦z|mtili (c) Reductions during the year 21,861.23 10,390.66 vÛ d Ø (d) Closing balance 48,232.76 56,480.38 (iii) |i|}Ûij¦ o| (iii) Movement of Net NPAs i }° ãj¦ (a) Opening balance 23,482.65 18,080.18 ~Û ¥j¦z|}{¥| (b) Additions during the year 2,303.00 9,887.33 Û ¥j¦z|mtili (c) Reductions during the year 10,176.15 4,484.86 vÛ d Ø (d) Closing balance 15,609.50 23,482.65 (iv) i|}ÛiÎØ}°{|j¦ o| (iv) Movement of provisions for |j¦dØ«}}°{|j¦âvÖj¦ NPAs (excluding provisions on standard assets) i }° ãj¦ (a) Opening balance 32,997.76 24,638.52 ~Û ¥j¦z|j¦ili}°{| (b) Provisions made during the year 11,310.61 14,265.01 Û Øj¦|Ûj¦Ûj¦Ø t¤tkØ (c) Technical / Prudential write offs 11,685.11 5,905.57 vÛ t¤tkØ f}§Øj¦d (d) Write off (Other than above) |Nil |Nil e¥ d Ø (e) Closing balance (v) Øj¦|Ûj¦Ûd}kØ«j¦ o| (v) Movement of Technical Write offs Øj¦|Ûj¦Ûj¦Ød}kØj¦Û Opening Balance of Technical / 15,128.29 11,790.89 lÛ«j¦}° ãj¦ Prudential written-off account qv«¡¥j¦z|Øj¦|Ûj¦Ûj¦Ø Add : Technical / Prudential 11,103.95 4,282.43 t¤tkØ write-of during the year f}l i Sub Total (A) 26,232.24 16,073.32 mti ¡¥j¦z| Less : Recoveries made from 1,244.56 945.03 Øj¦|Ûj¦Ûj¦Ø t¤tkØ previously technical / prudential «j¦ÛÛ Û written off accounts during the year (B) d|Ø i Û Closing Balance (A-B) 24,987.68 15,128.29

143 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Û i|}Ûi C. Sector-wise NPAs ¨¦ j¦ j¦dl° i|}Ûij¦}°ØØ S. No. Sector Percentage of NPAs to Total Advances in that sector o¥ }â¥ Current Year Previous Year 1 j¦i ·lØ{ Agriculture & allied activities 10.06% 12.67% 2 fµl i m{i vÖ Industry (Micro & small, Medium and Large) 17.85% 23.92% 3 i Services 8.56% 12.12% 4 §Øj¦h Personal Loans 4.3% 1.56% vÛ zÛdØ i|}ÛiØyq D. Overseas Assets, NPAs and Revenue (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year j¦dØ Total Assets 1,70,893.99 1,66,712.61 j¦i|}Ûi Total NPAs 7,845.14 8,291.05 j¦q Total Revenue 6,273.38 4,970.65 e¥ ãØÛ^¥ àj¦j¦}}¨¦ j¦vÛ Ûd Û}Û ÛÛ kz| j¦d}°«z¥li|z¥| dj¦Øddyi|}Ûij¦ij¦ilidØ§Ø}°{|«j¦}¥}t¥j¦iliãj¦d{j¦Î|}ãØÛ^¥ àj¦ ¸ j¦|j¦z| zã¥Ød{j¦j¦i|}Ûi·Ûj¦i|}Ûij¦d{j¦Î|} àj¦«¸d|Ø} }Ï lÛ¥j¦d}°{| |{Øj¦}¥|z v«dlÎ|}ez¥q|j¦Ûdj¦ØÎØÛÎØz|ÏÛ¥ j¦i}t¥j¦ilio|j¦ {«j¦ÛØyj¦qÎ|ÎÛ j¦qj¦ØÎ§«j¦Îg}z¥liãÛ}°«dl|ÎÛ Îj¦ØÎ E. As per RBI circular No. DBR.BP.BC.No.32/21.04.018/2018-19 dated April 1, 2019, in case the additional provisioning IRU13$VDVVHVVHGE\5%,H[FHHGVRIWKHUHSRUWHGSURÀWEHIRUHSURYLVLRQVDQGFRQWLQJHQFLHVDQGRUDGGLWLRQDO *URVV13$VLGHQWLÀHGE\5%,H[FHHGVRISXEOLVKHGLQFUHPHQWDO*URVV13$VIRUWKHUHIHUHQFHSHULRGWKHQEDQNV DUHUHTXLUHGWRGLVFORVHGLYHUJHQFHVIURPSUXGHQWLDOQRUPVRQLQFRPHUHFRJQLWLRQDVVHWFODVVLÀFDWLRQDQGSURYLVLRQLQJ $FFRUGLQJO\QRGLVFORVXUHLVPDGHLQUHVSHFWRIGLYHUJHQFHUHSRUWHGIRUWKHÀQDQFLDO\HDUDVWKHVDPHLVQRW beyond the above mentioned thresholds

144 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

A-2.7.2 dl°A-2.7.2 Sector-wise advances (` j¦vÖ / ` in Crores) ¨¦ Sector o¥j¦ o¥j¦ As on March 31, 2019 As on March 31, 2018 S. No j¦j¦ j¦ f§t j¦j¦ j¦ f§t j¦ dl° i|}Ûi j¦dl° dl° i|}Ûi dl° j¦ Outstanding Gross j¦i|}Ûij¦ Outstanding Gross i|}Ûij¦}°ØØ Total NPAs }°ØØ Total NPAs % of Gross NPAs Advances % of Gross Advances to Total Advances NPAs to Total in that sector Advances in that sector i }°yj¦Ø A Priority Sector 1 j¦i d| lÛlØ{ 54,744.43 5,409.08 9.88 43,937.68 4,892.37 11.13 Agriculture and allied activities 2 }°yj¦Øj¦d Øl¥Ø 21,556.71 2,397.20 11.12 31,258.40 3,682.70 11.78 f{ÎØ}dµlj¦ j¦dl° Advances to industries sector eligible as priority sector lending 3 i 33,778.85 3,036.66 8.99 23,369.71 2,666.44 11.41 Services 4 §Øj¦h 25,964.34 638.07 2.47 20,938.22 689.74 3.29 Personal loans f~qv× i 1,36,044.33 11,481.01 8.44 1,19,504.01 11,931.25 9.98 6XE²7RWDO $ ~Û l}°yj¦Ø}°}Ø B Non Priority Sector 1 j¦i d| lÛlØ{ 1,573.71 278.93 17.72 4,712.58 1,289.66 27.37 Agriculture and allied activities 2 fµl 1,38,782.65 21,637.21 15.59 1,06,401.92 25,703.79 24.16 Industry 3 i 1,44,154.97 10,869.75 7.54 1,87,073.74 17,248.32 9.22 Services 4 §Øj¦h 8,1150.5 3,965.86 4.89 43,052.12 307.37 0.71 Personal loans f}l Û 3,65,661.83 36,751.75 10.05 3,41,240.36 445,49.14 13.06 Sub – Total (B) j§ iÜ 5,01,706.16 48,232.76 9.61 4,60,744.37 56,480.39 12.26 7RWDO $%

145 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 i }°ØãØj¦}|l¥u|j¦}|ÛdydØ}|l¥u|j¦i oÛ $ 'HWDLOV RI ÀQDQFLDO DVVHWV VROG WR 6HFXULWL]DWLRQ lÛÏÛdØ«j¦ Reconstruction Company or Asset Reconstruction. (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year (i) kØ«j¦Û k No. of accounts |Nil |Nil (ii) iÛdÛj¦ olikØ«j¦ Aggregate value (net of provisions) of |Nil |Nil j¦ }°{|«j¦|t accounts sold to SC/RC (iii) j¦}°ØÜ¦ Aggregate consideration |Nil |Nil (iv) }° ãj¦Õ«d ØØkØ«j¦ {« $GGLWLRQDOFRQVLGHUDWLRQUHDOL]HGLQ |Nil |Nil ldØ§Ø}°ØÜ¦ respect of accounts transferred in earlier years (v) | ÎÛ}j¦ã Î| Aggregate gain/(loss) over net book |Nil |Nil value i }°ØãØÛz | j¦~ A – 2.7.4 Details of Investment in Security Receipts o¥j¦}°}Ø«j¦}«dqØ|«j¦Ûd{«· Details of ageing of investments held as Security Receipts as e}°j¦Î¡ on March 31, 2019 are as follows: (` j¦vÖ / ` in Crores) ¨¦ Particulars }âÙÕ qÛ ÙÕj¦{ ÙÕd{j¦j¦ id qÛid zqÛid 65VLVVXHGZLWKLQSRs issued more SRs issued more SDVW\HDUV than 5 years ago than 8 years ago but within past 8 years (i) d Ø|¥ÎØj¦¦} àj¦ Book Value of SRs backed by NPAs 159.22 463.73 50.23 ¸ ¨¦Ûj¦ili sold by the bank as underlying i|}Ûi¸y¥Øi(Category I SR) dj¦ ÎÛ Û 1 id (ii) (i) j¦}t}°{| Provision held against (i) 15.95 272.27 50.23 (iii) d Ø|¥ÎØj¦¦} d| Book Value of SRs backed by NPAs --- àj¦ ØØÛ yd VROGE\RWKHUEDQNVÀQDQFLDO l j¦ lÏÛj ¦}|Û LQVWLWXWLRQVQRQEDQNLQJÀQDQFLDO ¸ ¨¦Ûj¦ili companies as underlying (Category II i|}Ûi¸y¥Ø SR) idj¦ ÎÛ (iv) (ii) j¦}t}°{| Provision held against (ii) - - - Y ˆºÅ¥¸ L LL 7RWDO L LL

o¥j¦}°}Ø«j¦}«dqØ|«j¦Ûd{« Details of ageing of investments held as Security Receipts as ·e}°j¦Î¡ on March 31, 2018 are as follows:

¨¦ Particulars }âÙÕ qÛ ÙÕj¦{ ÙÕd{j¦j¦ id qÛid zqÛid 65VLVVXHGZLWKLQ SRs issued more SRs issued more SDVW\HDUV than 5 years ago than 8 years ago but within past 8 years (i) d Ø|¥ÎØj¦¦} àj¦ Book Value of SRs backed by NPAs 646.15 - 52.07 ¸ ¨¦Ûj¦ili sold by the bank as underlying i|}Ûi¸y¥Ø (Category I SR) idj¦ ÎÛ Û1 id)

146 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

(ii) (i) j¦}t}°{| Provision held against (i) 273.20 - 52.07 (iii) d Ø|¥ÎØj¦¦} d| Book Value of SRs backed by NPAs --- àj¦ ØØÛ yd VROGE\RWKHUEDQNVÀQDQFLDO l j¦ lÏÛ LQVWLWXWLRQVQRQEDQNLQJÀQDQFLDO j ¦}|Û ¸ ¨¦Ûj¦i companies as underlying (Category lii|}Ûi¸y¥Ø II SR) idj¦ ÎÛ (iv) (ii) j¦}t}°{| Provision held against (ii) - - - Y ˆºÅ¥¸ L LL 7RWDO L LL

}°ØãØÛz | j¦ ÎÛj¦~ Details of Book Value of Investments in Security Receipts

Particulars o¥ }â¥ Current Year Previous Year d Ø|¥ÎØj¦¦} àj¦¸ ¨¦Ûj¦ilii|}Ûi Backed by NPAs sold by the bank as underlying 673.18 698.22 ¸y¥Ø d Ø|¥ÎØj¦¦} d| àj¦ ÏÛ yd l àj ¦l %DFNHGE\13$VVROGE\RWKHUEDQNVÀQDQFLDOLQVWLWXWLRQV -- ÏÛj ¦}| ¸ ¨¦Ûj¦ilii|}Ûi¸y¥Ø QRQEDQNLQJÀQDQFLDOFRPSDQLHVDVXQGHUO\LQJ j§ Total

147 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

j¦ Total 25,772.40 25,925.00 387.63 - 10.71 6,269.00 Î| Loss in crores) ` 1,816.16 4,551.00 - - zl{ j¦ Total Doubtful j¦vÖ

- (` Sub- standard d|j¦ - |j¦ Standard - 361.00 -33.00 -275.00 -53.00 - j¦ Total 315.70 309.11 8.09 70.43 - - 2.44 10.48 0.22 0.01 - 399.00 6,176.00 93.00 - Î| Loss - - zl{ Doubtful d| Others - Sub- standard d|j¦ - |j¦ 395.00 4.00 - Standard 5,209.23 3,834.00 12,039.17 950.69 22,033.09 5,497.22 3,859.51 14,599.51 3,538.00 267.00 15,350.00 3,025.00 22,180.00 3,949.00 295.00 17,130.00 - 298.00 -26.00 -237.00 -35.00 163.68 -1.18 - -161.48 -1.02 0.00 181.29 -5.02 -164.60 -11.67 0.00 j¦ Total 1,178.58 3,719.00 5,870.00 13.60 252.04 7.80 55.86 - - 8.27 2.41 0.02 0.01 -

Î| Loss - - - zl{ Doubtful - Sub- standard d|j¦ - iie¥h}|l¥u|j¦¥}°Ûj¦d{Û| Under SME Debt Restructuring Mechanism |j¦ Standard Disclosure of Restructured Accounts as on 31.03.2019 ( F.Y. 2018-19) Disclosure of Restructured Accounts as on 31.03.2019 ( F.Y. 5,781.00 89.00 - 8.07 0.20 63.00 - -7.00 -38.00 - -18.00 17.61 -3.84 - -3.12 -10.65 - j¦ Total 58.33 8.10 0.29 5.21 - 24.95 199.14 3.97 0.69 11.52 215.32 2,094.98 0.67 63.21 13.52 2,172.38 2,299.88 4.64 83.09 25.04 2,412.65 - - - - - Î| Loss - - - - - zl{ ÏÛ¥ Doubtful 9.36 - 9.36 12.00 3.00 26.00 1,780.84 400.00 588.49 2,560.73 28.00 1,768.00 96.59 1,523.00 25.51 779.50 276.98 - 19.19 - - - - - Sub- Under CDR Mechanisam standard A-2.7.5. Disclosure of restructured advances d|j¦ ------ÛvÛdj¦¥}°Ûj¦d{Û| 5.76 - |j¦ 11.00 11.00 - 48.97 - 191.40 - Standard h j¦Û k No. of borrowers j¦ Amount outstanding f}}°{| Provision thereon h j¦Û k No. of borrowers j¦ Amount outstanding f}}°{| Provision thereon h j¦Û k No. of borrowers j¦ Amount outstanding f}}°{| Provision thereon Details dÙlÜ¦j§ $VVHWV&ODVVLÀFDWLRQ Type of Restructuring Type }|l¥u|j¦}°j¦ d}°Øj¦ }|l¥uØkØ Restructred Accounts as on April 01, 2018 ¥j¦z||i }|l¥u| Fresh Restructuring during the year ÏÛ¥j¦ z|}|l¥uØ|j¦ Û«d}l°v| Upgradation to restructured standard category during the 2018-19 FY 2 1 3 i}|l¥uØdl°«j¦}°j¦tÛj¦ z| j¦Øj¦}|l¥uØkØ«j¦}°j¦tÛj¦ ¨¦ S. No.

148 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

j¦ Total -1,346.84 - 688.00 Î| Loss in crores) ` - - - zl{ j¦ Total Doubtful j¦vÖ

- - - (` Sub- standard d|j¦ - |j¦ Standard - j¦ Total -1,866.87 -1,346.84 - - 601.00 688.00 - Î| Loss - - - zl{ Doubtful d| Others - - - Sub- standard d|j¦ - |j¦ Standard - j¦ Total -18.02 -1,866.87 - - 87.00 601.00 - Î| Loss - - - zl{ Doubtful - - - Sub- standard d|j¦ - iie¥h}|l¥u|j¦¥}°Ûj¦d{Û| Under SME Debt Restructuring Mechanism |j¦ Standard Disclosure of Restructured Accounts as on 31.03.2019 ( F.Y. 2018-19) Disclosure of Restructured Accounts as on 31.03.2019 ( F.Y. 87.00 - 87.00 - j¦ Total 538.05 -18.02 - - - Î| Loss - - - zl{ ÏÛ¥ Doubtful - - - Sub- Under CDR Mechanisam standard A-2.7.5. Disclosure of restructured advances d|j¦ - - - - ÛvÛdj¦¥}°Ûj¦d{Û| |j¦ 538.05 - Standard h j¦Û k No. of borrowers j¦ Amount outstanding f}}°{| Provision thereon Details dÙlÜ¦j§ $VVHWV&ODVVLÀFDWLRQ Type of Restructuring Type }|l¥u|j¦}°j¦ }|l¥uØ|j¦kØ q|dØ{j¦ }°{|«j¦ylØ j¦zÎd ÏÛ¥j¦Û}Ø }dØ{j¦qk {Øj¦ÎØy ej¦dl ÏÛ¥j¦d ã e|Î«}|l¥uØ|j¦ dl°««z¥| d}Ø|ÎÛ Î Restructred standard advances which ceased to attract higher provisioning and / or additional risk weight at the and end of the FY hence need not be shown as restructured standard advances at the beginning of next FY 4 i}|l¥uØdl°«j¦}°j¦tÛj¦ z| j¦Øj¦}|l¥uØkØ«j¦}°j¦tÛj¦ ¨¦ S. No.

149 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

j¦ Total -7,896.00 -12,369.41 -131.33 266.29 -0.73 .66 14,468.80 .66 Î| Loss in crores) ` -1,007.25 -1,800.00 - 4 62.00 2,724.00 24,986.00 zl{ j¦ Total Doubtful j¦vÖ

(` Sub- standard d|j¦ -0.73 - -0.73 |j¦ Standard -790.00 5.00 759.00 26.00 - j¦ Total -6,668.00 -1,886.00 -258.00 -3,952.00 -104.78 -59.30 -7.33 -64.70 - -0.73 - -0.73 212.64 260.29 0.25 5.75 - Î| Loss -1,409.00 - zl{ Doubtful d| Others Sub- standard d|j¦ -0.73 - -0.73 |j¦ Standard -720.00 3.00 700.00 17.00 - - j¦ Total -5.93 -46.31 -7.04 -51.43 - - 15.94 208.14 0.05 4.45 - Î| Loss - zl{ Doubtful - Sub- standard d|j¦ - iie¥h}|l¥u|j¦¥}°Ûj¦d{Û| Under SME Debt Restructuring Mechanism |j¦ -94.20 -21.67 -424.38 -172.50 -712.75 -1,754.82 -3,791.29 -4,048.87 -246.26 -9,841.24 -2,305.86 -3,812.96 -5,243.3 Standard Disclosure of Restructured Accounts as on 31.03.2019 ( F.Y. 2018-19) Disclosure of Restructured Accounts as on 31.03.2019 ( F.Y. -68.00 2.00 57.00 9.00 - -11.61 0.12 -80.98 92.47 -0.00 -27.29 -33.19 -195.43 255.91 -0.00 -229.20 -33.07 -86.11 348.38 -0.00 - j¦ Total -1,815.42 - -20.62 -1.73 -0.29 13.00 6,033.00 -3.91 92.00 1,210.00 1,126.00 - 8,461.00 2,460.00 10.00 12,444.00 1,598.00 16,512.00 8,498.00 102.00 13,6 - 1,308.31 189.51 4.09 271.71 197.82 663.13 3,818.91 9.01 7,696.60 972.84 12,497.36 4,096.49 13.10 9,188.55 1,170 37.71 14.44 0.20 1.30 - - Î| Loss - - zl{ ÏÛ¥ Doubtful 2.00 - 2.00 -6.00 -3.00 -13.00 -230.00 -20.00 -577.00 -388.00 -1,215.00 -1,652.00 -238.00 -3,369.00 190.30 - 190.30 -770.09 -588.49 1,220.24 - - -9.36 - -9.36 - 8.00 - Sub- Under CDR Mechanisam standard A-2.7.5. Disclosure of restructured advances d|j¦ - - ÛvÛdj¦¥}°Ûj¦d{Û| 5.00 - -2.00 - -4.00 - |j¦ 88.07 - 37.71 - -11.26 -11.26 - -190.30 - -456.84 - Standard h j¦Û k No. of borrowers j¦ Amount outstanding f}}°{| Provision thereon h j¦Û k No. of borrowers j¦ Amount outstanding f}}°{| Provision thereon h j¦Û k No. of borrowers j¦ Amount outstanding f}}°{| Provision thereon Details dÙlÜ¦j§ $VVHWV&ODVVLÀFDWLRQ Type of Restructuring Type }|l¥u|j¦}°j¦ ÏÛ¥j¦ z|}|l¥uØkØ« j¦vf|l°v| Downgradation of restructured accounts 2018-19 during the FY ÏÛ¥ j¦z|}|l¥uØ kØ«j¦ t¤tkØ vl of off Write restructured accounts 2018-19 during the FY o¥Øj¦ }|l¥uØkØ Restructured accounts as on March 31, 2019 7 5 i}|l¥uØdl°«j¦}°j¦tÛj¦ z| j¦Øj¦}|l¥uØkØ«j¦}°j¦tÛj¦ ¨¦ S. No. 6

150 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement .00 j¦ Total 02 25675.15 Î| Loss zl{ in crores) j¦ Total Doubtful ` Sub- standard d|j¦ j¦vÖ

(` |j¦ Standard j¦ Total Î| Loss zl{ d| Doubtful Others Sub- standard d|j¦ |j¦ Standard j¦ Total Î| Loss zl{ Doubtful Sub- standard A-2.7.5. Disclosure of Restructured Accounts as on 31.03.2018 (F.Y. 2017-18) A-2.7.5. Disclosure of Restructured Accounts as on 31.03.2018 (F.Y. d|j¦ iie¥h}||¥{j¦d{Û| Under SME Debt Restructuring Mechanism |j¦ Standard j¦ Total Î| Loss ¦tÛj¦ ÏÛ¥ zl{ Doubtful Sub- Under CDR Mechanisam standard ÛvÛdj¦¥}°Ûj¦d{Û| d|j¦ 0.00 0.00 0.00 0.00 0.000.00 7.00 0.00 3.00 0.00 3.000.00 0.00 5.00 0.00 0.00 18.00 0.00 14.00 0.080.00 0.00 5.00 0.02 0.00 0.00 0.00 0.690.00 149.00 0.00 6.00 0.00 -44.00 0.00 0.00 25.00 0.79 -98.00 0.00 0.00 21.00 -7.00 0.04 0.00 25.27 8.00 0.00 0.03 -6.24 0.00 743.00 3.00 0.00 -18.76 -225.00 11.00 0.67 -431.00 -0.27 0.00 43.00 -87.00 -0.32 0.00 0.07 -0.35 0.00 26.53 0.12 892.00 0.00 -11.12 -269.00 0.05 0.00 -13.97 -529.00 -1.44 0.69 -94.00 1.31 0.00 0.00 0.00 -0.54 0.86 51.80 -0.77 -17.36 0.00 -32.73 0.00 -1.71 1.98 0.00 -0.86 -1.12 0.00 0.00 18.00 3.00 18.00 2.00 41.00 829.0091.93 136.00 12.35 4103.00 180.00 49.83 5248.00 10970.00 0.00 863.00 154.11 17724.00 3103.00 21.25 32660.00 11817.00 2.00 1002.00 21845.00 17.65 3285.00 37949 0.00 40.90 303.85 3.47 53.51 0.00 360.83 417.03 17.82 120.99 0.00 555.84 |j¦ 675.31 0.00 35.64 0.00 710.95 32.94 2.91 25.66 1.74 63.25 7885.16 56.27 936.13 10.93 8888.49 8593.41 59.18 997.43 12.67 9662.69 2025.19 261.33 1612.39 263.90 4162.81 186.57 24.84 1251.53 298.48 1761.42 8550.09 1387.23 8983.96 829.64 19750.92 10761.85 1673.40 11847.88 1392. Standard h j¦Û k No. of borrowers j¦ Amount outstanding f} }°{| Provision thereon h j¦Û k No. of borrowers j¦ Amount outstanding f} }°{| Provision thereon h j¦Û k No. of borrowers j¦ Amount outstanding f} }°{| Provision thereon }|l¥u|j¦}°j¦ of Restructuring Type dØlÛ¥j¦ Assets Classification Details d}°Øj¦ }|l¥uØkØ Restructred Accounts as on April 01, 2017 ¥j¦z||i }|l¥u| Fresh Restructuring during the year ÏÛ¥j¦ z|}|l¥uØ|j¦ Û«d}l°v| Upgradation to restructured standard category during the FY 2016-17 2 1 3 iz| j¦Øj¦}|l¥uØkØ«j¦}°j ¨¦ S. No.

151 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 j¦ Total Î| Loss zl{ in crores) j¦ Total Doubtful ` Sub- standard d|j¦ j¦vÖ

152 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement j¦ Total 72.40 .45 -8237.20 .00 -12067.00 Î| Loss zl{ in crores) j¦ Total Doubtful ` Sub- standard d|j¦ j¦vÖ

(` |j¦ Standard j¦ Total Î| Loss zl{ d| Doubtful Others Sub- standard d|j¦ |j¦ Standard j¦ Total Î| Loss zl{ Doubtful Sub- standard A-2.7.5. Disclosure of Restructured Accounts as on 31.03.2018 (F.Y. 2017-18) A-2.7.5. Disclosure of Restructured Accounts as on 31.03.2018 (F.Y. d|j¦ iie¥h}||¥{j¦d{Û| Under SME Debt Restructuring Mechanism |j¦ Standard j¦ Total Î| Loss ¦tÛj¦ ÏÛ¥ zl{ Doubtful Sub- Under CDR Mechanisam standard ÛvÛdj¦¥}°Ûj¦d{Û| d|j¦ -6.00 -3.00 6.00 1.00 -2.00 -158.00-7.96 19.00 0.00 108.00 31.00 7.96-1.00 0.00 0.00 -1919.00 0.00 0.00 233.00 -12.00 1543.00 -0.68 145.00 0.00 0.17 -13.00 2.00 -2083.00 -427.00 0.51 249.00 -86.00 0.00 1657.00 -2348.00 1314.00 177.00 0.00 -1547.00 -6270.00 -8.14 0.00 -609.00 -3486.00 3.84 -142.00 -10507.00 4.30 -6698.00 -695.00 0.00 -5846.00 1172 0.00 -16.78 4.01 12.77 0.00 0.00 11.00 0.00 12.00 3.00 26.00 400.0048.97 28.00 0.00 1768.00 1523.00 3719.00 9.36 3538.00 0.00 267.00 15350.00 58.33 3025.00 22180.00 8.10 3949.00 295.00 0.29 17130.00 4551.00 5.21 25925.00 0.00 13.60 252.04 7.80 55.86 0.00 315.70 309.11 8.09 70.43 0.00 387.63 |j¦ -35.00 -12.35 -48.43 0.00 -95.78 -13.22 -1.58 -13.29 0.00 -28.09 -45.02 1.00 -1.18 0.00 -45.20 -93.24 -12.93 -62.90 0.00 -169.07 191.40 0.00 1780.84 588.49 2560.73 96.59 25.51 779.50 276.98 1178.58 5209.23 3834.00 12039.18 950.69 22033.10 5497.22 3859.51 14599.52 1816.16 257 -675.31 -13.65 -856.96 0.00 -1545.92 -56.52 -20.94 -507.35 -31.85 -616.66 -4049.94 -1370.97 -648.11 -5.60 -6074.62 -4781.77 -1405.56 -2012.42 -37 -1239.26 -247.68 989.77 324.59 -172.58 -62.24 24.94 28.42 8.88 0.00 -6498.34 3772.59 2781.17 117.16 172.58 -7799.84 3549.85 3799.36 450.63 0.00 Standard h j¦Û k No. of borrowers j¦ Amount outstanding f} }°{| Provision thereon h j¦Û k No. of borrowers j¦ Amount outstanding f} }°{| Provision thereon h j¦Û k No. of borrowers j¦ Amount outstanding f} }°{| Provision thereon }|l¥u|j¦}°j¦ of Restructuring Type dØlÛ¥j¦ Assets Classification Details ÏÛ¥j¦ z|}|l¥uØkØ« j¦vf|l°v| Downgradation of restructured accounts 2017-18 during the FY ÏÛ¥ j¦z|}|l¥uØ kØ«j¦ t¤tkØ vl of restructured off Write accounts during the FY 2017-18 o¥Øj¦ }|l¥uØkØ Restructured accounts as on March 31, 2018 6 5 7 iz| j¦Øj¦}|l¥uØkØ«j¦}°j ¨¦ S. No.

153 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 i kÛzÛlÛ oÛlÛd|q¥j¦ØØÛdØ j¦ $'HWDLOVRIQRQSHUIRUPLQJÀQDQFLDODVVHWV ¡ purchased/sold i kÛzÛlÛd|q¥j¦ØØÛdØ j¦¡ $ 'HWDLOVRIQRQSHUIRUPLQJÀQDQFLDODVVHWV purchased: (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year i ¥j¦z|kÛzlikØ«j¦Û 1. (a) No. of accounts purchased |Nil |Nil k during the year ~Û l° j¦ (b) Aggregate outstanding |Nil |Nil i e|« ¥ j¦ z| }|l¥uØ 2. (a) Of these, number of accounts |Nil |Nil kØ«j¦Û k restructured during the year ~Û l° j¦ (b) Aggregate outstanding |Nil |Nilss ~Û oÛlÛd|q¥j¦ÏÛdØ«j¦¡ % 'HWDLOVRIQRQSHUIRUPLQJÀQDQFLDODVVHWVVROG (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year olikØ«j¦Û k 1. No. of accounts sold 07 03 l° j¦ 2. Aggregate outstanding 2,217.27 840.29 l°}°}Ø}°ØÜ¦ 3. Aggregate consideration received 1,709.38 599.83 Û }°ØãØj¦j ¦}|«j¦ old|q¥j¦kØ & 1RQ 3HUIRUPLQJ $FFRXQWV VROG WR 6HFXULWL]DWLRQ Companies (` j¦vÖ / ` in Crores) i|}Ûij¦j¦ àj¦¸ ¨¦Ûj¦Û i|}Ûij¦j¦d| àj¦«ÏÛ j¦ Particulars lÛd|Ø|¥ÎØdØ l àj ¦lÏÛj ¦}|«¸ Total Backed by NPA sold by the ¨¦Ûj¦ÛlÛd|Ø|¥ÎØdØ Bank as underlying Backed by NPAs sold by Other EDQNVÀQDQFLDOQRQEDQNLQJ Financial companies underlying o¥ }â¥ o¥ }â¥ o¥ }â¥ Current Year Previous Year Current Year Previous Year Current Year Previous Year }°ØãØÛz«|j¦ ÎÛ | | | | | | Book Value of NIL NIL NIL NIL NIL NIL Investment in Security Receipts i |j¦dØ«}}°{| A-2.7.7. Provisions on Standard Assets (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year d Ûde¥|zv«j¦d||j¦dØ« Provisions towards Standard Assets as 3,153.12 3,159.22 j¦i}°{| per RBI norms i qd dl° i§}^Øyi|}Ûij¦ j¦|® A-2.7.8. Concentration of Deposits, Advances, Exposures and NPAs (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year i qd«j¦ j¦|® (a) Concentration of Deposits Û vÖqj¦Ø¥d«j¦Ûj¦qi Total Deposits of twenty largest 46,374.46 28,688.80 depositors

154 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

àj¦ j¦Û j¦ qd« « Û vÖ Percentage of Deposits of twenty 7.26% 4.85% qj¦Ø¥d«j¦Ûqd«j¦}°ØØ largest depositors to Total Deposits of the bank ~Û dl°«j¦ j¦|® (b) Concentration of Advances Û vÖh«j¦zilij¦ Total Advances to twenty largest 42,477.19 65,525.02 h borrowers àj¦ j¦ j¦ dl°« « Û vÖ Percentage of Advances to 8.42% 15.33% h«j¦zilidl°«j¦}°ØØ twenty largest borrowers to Total Advances of the bank Û i§}^j¦ j¦|® (c) Concentration of Exposures Û vÖh«l°Îj¦«j¦j¦ Total Exposure to twenty largest 1,04,259.53 91,825.31 i§}^ borrowers/customers Û vÖh«l°Îj¦«j¦ àj¦j¦ Percentage of Exposures to twenty 14.12% 13.58% j¦i§}^j¦}°ØØ largest borrowers/customers to Total Exposure of the bank on borrowers/customers vÛ i|}Ûij¦ j¦|® (d) Concentration of NPAs o vÖi|}ÛikØ««j¦i§}q Total Exposure to top four NPA 6,402.35 7,038.87 accounts e¥ }°{|j¦qd|}Ø }ÛÛd (e) Provision Coverage Ratio (PCR) 78.68% 67.21% i e tÐl°}i§}q A-2.7.9. Intra Group Exposures (` j¦vÖ / ` in Crores) Particulars o¥Current Year }â¥Previous Year |{ | j¦ |{ | j¦ d{Ø d{Ø Tota d{Ø d{Ø Tota Fund Investment Fund Investment Based Based Based Based e tÐl°}i§}qj¦Ûj¦ Total Amount of Intra 268.00 3,610.11 3,878.21 399.55 2,035.38 2,434.93 Group Exposures ¥{j¦e tÐl°}i§}q Total amount of Top 20 268.00 3,610.11 3,878.21 399.55 2,035.38 2,434.93 kØ Intra Group Exposures h j¦Ø¥d«l°Îj¦« j¦ z Percentage of intra- 0.06 1.98 0.60 0.09 1.25 0.41 l àj¦ j¦ j¦ i§}q « group exposures to total e tÐl°}i§}qj¦}°ØØ exposure of the bank on borrowers / customers e tÐl°}i§}qj¦ÛÛd« Details of breach of limits ------j¦ f m| j¦ Øy on intra-group exposures f} j¦Û lÛ |j¦ and regulatory action j¦¥e¥zj¦e¥Î thereon, if any i j¦d|}Ø A-2.8 Business Ratios Particulars o¥ }â¥ Current Year Previous Year dØj¦¥Û|{«j¦}°ØØj¦¦}« q Interest Income as a percentage to Average 7.26% 6.35% d Working Funds dØj¦¥Û|{«j¦}°ØØj¦¦}«l Non-interest income as a Percentage to 0.88% 0.97% qd Average Working Funds dØ j¦¥Û |{« j¦ }°ØØ j¦ ¦} « 2SHUDWLQJ 3URÀW DV D SHUFHQWDJH WR $YHUDJH 1.96% 1.75% }o|ã Working Funds dØ«}}°ØÜ¦ Return on Assets (%) 0.06 (0.34) }°Ø j¦¥oÛ j¦ q Øy dl° Business (Core Deposits plus advances) per 18.88 17.66 `j¦vÖ« employee (` in Crores) }°Øj¦¥oÛã `j¦vÖ« 3URÀWSHUHPSOR\HH ` in Crores) 0.08 (0.04)

155 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 idØ«dzØd«j¦}° {|dØ«dzØd«j¦Ûj¦â A-2.9 Asset Liability Management Maturity pattern of certain z«j¦}}§Ø¦} items of assets and liabilities (` j¦vÖ / ` in Crores) z| z| z| Î Î Î ¥ ¥ Õ j¦ 1 Day 2 to 7 Days z| z| Î d{j¦ d{j¦ d{j¦ d{j¦¥ d{j¦¥ d{j¦ Total 8 to 14 Days 15-30 Days 31 Days - 2 Î Î Î Over 1 Over 3 years Over 5 years Months Over 2 M - 3 Over 3 M - up Over 6 M - Yr - up to 3 - Upto 5 Months to 6M up to 12 M years years

q Deposits 7,995.10 20,117.41 11,969.02 17,813.19 30,103.28 34,978.54 64,330.91 98,994.46 1,83,272.25 33,701.91 1,35,413.65 6,38,689.72 (7,408.95) (17,306.03) (18,765.00) (18,341.03) (27,064.60) (40,762.23) (48,975.25) (87,846.65) (1,67,849.43) (35,496.01) (1,21,499.64) (5,91,314.82)

dl° Advances 18,523.36 10,111.87 7,608.12 26,607.86 12,593.76 16,387.51 20,905.57 25,938.28 1,94,884.47 50,899.77 84,358.17 4,68,818.74 (6,715.02) (12,561.30) (7,706.19) (19,563.24) (14,490.87) (22,382.02) (27,308.52) (19,498.89) (1,38,937.55) (51,540.10) (1,06,728.13) (4,27,431.83)

| Investments 153.72 1,581.82 236.22 1,405.67 983.90 3,696.54 5,225.05 7,432.81 32,851.10 26,469.65 1,02,261.59 1,82,298.08 - (1,238.57) (251.32) (783.46) (808.93) (475.47) (5,693.87) (7,888.89) (22,989.78) (22,070.78) (1,00,983.46) (1,63,184.53)

f{ Borrowings 1,573.24 14,428.61 15,700.00 0.00 2,472.51 538.04 10,488.65 8,376.75 7,361.20 6,262.31 0.00 67,201.30 (840.51) (18,630.70) (6,500.01) (6,055.37) (273.74) (715.39) (2,427.29) (1,904.97) (13,815.20) (7,203.68) (4205.11) (62,571.97) zÛ Foreign 43,276.72 7,471.07 6,041.67 12,468.40 13,146.82 14,596.61 19,231.42 13,874.88 22,665.46 20,210.13 9,438.90 1,82,422.07 Currency (25,911.23) (7,650.63) (5,356.64) (14,650.92) (23,655.75) (26,411.10) (25,103.14) (15,941.35) (19,923.77) (9,115.45) (6,279.78) (1,79,999.76) ®dØ assets

zÛ Foreign 9,189.86 24,612.43 3,696.62 10,485.28 24,889.29 13,865.04 32,449.24 34,881.80 29,425.19 9,827.41 1,287.37 1,94,609.53 Currency (7,209.26) (19,293.16) (10,158.32) (15,833.65) (15,850.86) (22,963.83) (20,655.22) (27,317.51) (38,089.12) (9,551.50) (1,042.20) (1,87,964.63) ®zØi liabilities • j¦uj¦«zilid j¦vÖ}â¥j¦Û ki Îà Figures in bracket denote previous year numbers • dØ«i zØd«j¦ãq|C ÎdØzØ}° {|i Îqk|ÛØ j¦d|j¦lÎ The distribution of Assets and Liabilities has been done as per the “Group Asset Liability Management Policy 2018” of the Bank • ·| j¦Ûl|j¦Ø}°{|«j¦ãq|j¦| j¦d|}Ø«j¦lÎ • The distribution of provisions, while arriving at the net investments, has been done in proportion to the gross investments • ·dl°«j¦Ûl|j¦Ø}°{|«i d|j¦tØ«j¦ãq|j¦|j¦dl°«j¦d|}Ø«j¦lÎ The Distribution of provisions and other deductions, while arriving at the net advances, has been done in proportion to the gross Standard Advances. i i§}q A-2.10 Exposure i itt«i§}q A-2.10.1 Exposure to Real Estate Sector (` j¦vÖ / ` in Crores) Û Category o¥ }â¥ Current Year Previous Year i }°Øi§}q a) Direct exposure L dÛ {j¦ (i) Residential Mortgages – dÛ }Ïqj¦q¥zj¦Ø«Î Lending fully secured by mortgages 49,702.22 44,288.27 ÎlÛj¦i}Îj¦ {j¦kØÎi}¥ on residential property that is or will }°ØãØj¦q¥ be occupied by the borrower or that is rented; e|«}°yj¦Ø}°}Ødl°««j¦| Of which Individual housing loans eligible (21,032.86) (18,616.53) ÎØ}§ØlØdh for inclusion in priority sector LL qj¦itt (ii) Commercial Real Estate – qj¦itt} {j¦¸}°ØãØ Lending secured by mortgages on 12,974.13 7,139.82 FRPPHUFLDOUHDOHVWDWH·V RIÀFHEXLOGLQJV j¦q¥ j¦¥ ã| t } Îf´Û retail space, multi-purpose commercial qj¦} Î}dÛã| Î premises, multi-family residential j¦izj¦¥}dµlj¦ buildings, multi-tenanted commercial premises, industrial or warehouse space, Îf } Ît qÛ| d{l°Î j¦ hotels, land acquisition, development Øy|¥j¦¥dz i§}^«l|{ and construction, etc.). Exposure would d{Ø i|iÜ¦ Û Ûi Îj¦ØÛÎà also include non-fund based (NFB) limits; 156 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

LLL {j¦§Ø}°ØãØ i Ûi | (iii) Investments in Mortgage Backed Øyd|}°ØãØØi§}q Securities (MBS) and other securitised exposures – i dÛ a. Residential 0.00 0.00 ~Û qj¦itt b. Commercial Real Estate 201.57 0.00 ~Û d}°Øi§}q b. Indirect Exposure |{d{ØØyl|{d{Øi§}q Fund based and non-fund based exposures L ||Îf l àj¦ i|io Û (i) National Housing Bank (NHB) 3,000.00 2.89 LL dÏj ¦}| ioiÜ¦Û (ii) Housing Finance Companies 28,766.31 8,189.56 (HFCs) itt¬j§i¨~q 7RWDO([SRVXUHWR5HDO(VWDWH6HFWRU i} qÛ qi§}q A-2.10.2 Exposure to Capital Market (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Previous Year Year L e§tÛ ¥ }Ø¥|Û ¢v« }Ø¥|Û (i) Direct investment in equity shares, 1,964.55 1106.57 convertible bonds, convertible debentures v «o«Øye§tÛd{ØodÜ ¦vj¦Û and units of equity-oriented mutual funds |t«q|j¦j¦¢}j¦}¥th«dl the corpus of which is not exclusively ||ÎÛ j¦iliÎ««}°Ø| invested in corporate debt; LL « ¢v v «o« dy d| }°ØãØ« j¦Û (ii) Advances against shares/bonds/ 4.08 7.72 debentures or other securities or on clean i^«dl°dy« de¥}Ûde¥id}Û basis to individuals for investment in shares }Ø¥|Û ¢v }Ø¥|Û v «o« Øy (including IPOs/ESOPs), convertible e§tÛd{ØodÜ ¦vj¦Û|t««| bonds, convertible debentures, and units j¦i§Ø«j¦| Õ{d{}zilidl° of equity-oriented mutual funds; LLL j¦|ÎÛ d|if´«j¦idl°qÎ « (iii) Advances for any other purposes where 2.64 0.00 shares or convertible bonds or convertible dy}Ø¥|Û ¢v dy}Ø¥|Ûv «o« debentures or units of equity oriented dye§tÛd{ØodÜ ¦vj¦Û|t« mutual funds are taken as primary security; j¦}°yj¦}°ØãØj¦¦}«lÎ LY j¦|ÎÛ d| i f´« j¦ i f Û Øj¦ (iv) Advances for any other purposes to the 1166.81 1,450.15 extent secured by the collateral security of dl°qj¦«}Ø¥|Û ¢v dy shares or convertible bonds or convertible }Ø¥|Û v «o« dy e§tÛ d{Ø debentures or units of equity oriented od Ü ¦v j¦Û |t« j¦Û }Ç¥j¦ }°ØãØ mutual funds i.e. where the primary Ø Î dy¥Ø qÎ j¦ «}Ø¥|Û security other than shares/convertible bonds/convertible debentures/units of ¢v }Ø¥|Û v «o«e§tÛ d{Ø equity oriented mutual funds does not fully odÜ ¦v«j¦dÛlÛ}°yj¦}°ØãØ cover the advances; }ÛØÎdl°«j¦j¦|ÎÛ j¦}ÛÎ Y t¢j¦ °j¦«j¦q|ØÛØylq|ØÛdl° (v) Secured and unsecured advances to 1.53 2.36 stockbrokers and guarantees issued on Øyt¢j¦ °j¦«Øyj¥¦tj¦j¦Ûd behalf of stockbrokers and market makers; qÛl t YL j¦}¥t j¦ « ¢v v «o« dy d| (vi) Loans sanctioned to corporates against |Nil |Nil the security of shares / bonds/debentures }°ØãØ« dy d}| {|« j¦ cÖ| j¦Û or other securities or on clean basis for }°Ø«|Ûj ¦}|«j¦Ûe§tÛj¦}°tj¦ meeting promoter’s contribution to the d z|j¦i| Õ{d{}Ûj¦Øj¦ili equity of new companies in anticipation of dl° raising resources; YLL ãØe§tÛ}°Î|l¥«j¦Ûiq«j ¦}|« (vii) Bridge loans to companies against 0.23 349.85 j¦}j¦ °q h H[SHFWHGHTXLW\ÁRZVLVVXHV YLLL « dy }Ø¥|Û ¢v v «o« dy (viii) Underwriting commitments taken up by 0.00 0.00 the banks in respect of primary issue of e§tÛd{ØodÜ ¦vj¦}°yj¦´«j¦ shares or convertible bonds or convertible « àj¦«¸j¦ÛlÛÎÛzÛ}°Ø ·Øi debentures or units of equity oriented mutual funds;

157 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

L[ q¥|tÐv lj¦it¢j¦ °j¦«j¦Ï}°z| (ix) Financing to stockbrokers for margin 0.22 0.00 j¦| trading; [ fµ } qÛ |{« } qÛj¦Ø Øy l } qÛj¦Ø (x) All exposures to Venture Capital Funds 603.63 690.50 z| j¦l°qk (both registered and unregistered) ; ~¡qÜq ¬j§i¨~q 7RWDO([SRVXUHWR&DSLWDO0DUNHW } qÛ ^ `3,743.69 j¦vÖj¦i§}^`12,728.11 j¦vÖj¦ÛÛj¦d Øl¥Ø dy¥Øz| j¦o¥j¦ àj¦j¦Û`31,820.28 j¦vÖj¦Û|Øj¦40Î The exposure to Capital Market of Rs 3,743.69 Crores is within the limit of Rs 12,728.11 Crores (i.e. 40% of Bank’s Net worth of Rs 31,820.28 Crores as on March 31, 2018). } qÛ ^ `2,568.18 j¦vÖj¦i§}^`6,364.05 j¦vÖj¦ÛÛj¦d Øl¥Ø dy¥Øz| j¦o¥j¦ àj¦j¦Û`31,820.28 j¦vÖj¦Û|Øj¦20 Î The direct exposure to Capital Market of Rs. 2,568.18 Crores is within the limit of Rs. 6,364.05 Crore (i.e. 20% of the Bank’s net worth of Rs. 31,820.28 Crores as on March 31, 2018) iqkÛzÛi§}^ A-2.10.3 Risk Category wise Country Exposure (` j¦vÖ / ` in Crores) Û Category o¥j¦ o¥ o¥ o¥ i§}^ | j¦}°{| j¦i§}^ | j¦}°{| Exposure (net) as on Provision held as on Exposure (net) as on Provision held as on 31st 31st March 2019 31st March 2019 31st March 2018 March 2018 ÎØÎÛ| ,QVLJQLÀFDQW 66846.59 47.92 60,720.85 40.07 || Low 34,492.03 25.01 46,353.43 29.74 { Moderate 4,360.05 - 3,227.02 - foo High 3,719.07 - 2,135.74 - d{j¦foo Very High 19.49 - 8.25 - ÛØ Restricted 1.66 - 0.21 - heØ Off-credit 0.05 - 1.67 - d j¦Ø Not Rated 0.00 - 229.97 - ˆºÅ¥¸ Total i àj¦¸}j¦ÛlÛij¦hÛÛ i Ûi ÎhÛ A-2.10.4 Single Borrower Limit (SBL)/ Group Borrower Limit Û qÛ Ûi (GBL) exceeded by the bank (` j¦vÖ / ` in Crores) ¥ hÛj¦| ij¦j¦q¥z j¦ q o¥ Year Name of Borrower i§}^Û Û j¦ Single Total Limit Balance as on Borrower Sanctioned March 31, 2019 Exposure limit 2018-19 |Nil |Nil |Nil |Nil 2017-18 |Nil |Nil |Nil |Nil ¥ Îj¦| Îj¦q¥z j¦ q o¥ Year Name of Group i§}^Û Û j¦ Group Total Limit Balance as on Borrower Sanctioned March 31, 2018 Exposure limit 2018-19 |Nil |Nil |Nil |Nil 2017-18 |Nil |Nil |Nil |Nil i lq|ØÛdl° A-2.10.5 Amount of Unsecured advances ãØÛ^¥ àj¦j¦}} kvÛ Ûd Û}Û ÛÛ k23/21.04.018/2015-16 z| j¦qe¥j¦ zã¥ / (In terms of per RBI Circular No. DBR.BP.BC No.23/21.04.018/2015-16 dated 01st July 2015) (` j¦vÖ / ` in Crores) ¨¦ o¥ o¥ 6U1R 3DUWLFXODUV j¦ j¦ $VRQ0DUFK $VRQ0DUFK (i) dØ¥} }Ïqj¦d{j¦}}°ãe«}°{j¦eØzj¦¦}«kÛle¥ }Ç¥j¦}°ØãØ 3,392.95 1,648.24 eØzy¥Ød}°ØãØh / Unsecured Loan backed by intangible assets, such as charge over the rights, licenses, authority etc. taken as collateral security. (ii) f§Ø(i) j¦âvÖj¦dØh/ Unsecured Loans other than (i) 59,767.30 76,243.15

158 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

i { A-2.11 Miscellaneous i¥j¦z|j¦{|ÎØj¦ili}°{|j¦Û A-2.11.1 Amount of Provisions for Taxation during the year (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year }Ïj¦i dylØj¦ÎØj¦«ÎØ}°{| Provision for Tax including Wealth tax & 264.63 (-) 299.98 deferred tax mti }â Õ {Ø j¦ }°{|« j¦ Less : reversal of Tax Provisions relating to 0.00 58.95 ¥ previous years j¦j¦i|}°{| Net provision for Tax 264.63 (-)358.93 iãØÛ^¥ àjzÛ|j¦ ¸liliz vj¦}°j¦tÛj¦ A-2.11.2 Disclosure of penalties imposed by RBI / Overseas Regulators Particulars o¥j¦}Ø o¥j¦}ØØØ ØØ¥j¦i ¥j¦i For the year ended For the year ended March March 31, 2019 31, 2018 j¦Û k j¦Û k No of Cases Amount No of Cases Amount ãØÛ^¥ àj¦z¤llz v Penalties Imposed by RBI 125 5.25* 93 7.12 zÛ /d| l } {Ø Penalties Imposed on Overseas 1 0.001 2 5.87 |j¦ z¤llz v territories/subsidiaries by their respective regulators * }t {Û}o|lØ| j¦¨¦|| j¦j¦ãØÛ *includes Rs. 4 crore penalty imposed by RBI on account of ^¥ àj¸le¥le¥z vj¦vÖj¦z vÎ delay in implementation of SWIFT related operational controls. i }°qØØ|}Ø d¢Ü¦ «Ût i}ÛÛ q|Î k A-2.11.3 Off-balance sheet SPVs sponsored (which are required |z v j¦d|j¦Øj¦|d}ØÎ to be consolidated as per accounting norms)

Particulars }°qØi}ÛÛj¦|Name of the SPV sponsored m/ Domestic zÛ/ Overseas o¥ $VRQ0DUFK |Nil |Nil o¥ $VRQ0DUFK |Nil |Nil i }°ØãØj¦ $6HFXULWL]DWLRQ ¨¦ Particulars o¥ }â¥ S.No. Current Previous Year Year 1. }°ØãØj¦ Îj¦i àj¦¸ 1RRI639VVSRQVRUHGE\WKHEDQNIRU6HFXULWL]DWLRQ NIL Nil }°qØi}ÛÛj¦Û k transaction 2. àj¦¸}°qØi}ÛÛj¦Û ÎÛj¦ 7RWDODPRXQWRI6HFXULWL]HGDVVHWVDVSHUERRNVRIWKH NIL Nil d|}°ØãØj¦dØ j¦Ûj¦ SPVs sponsored by the Bank 3. Ø|}j¦ÛØyj¦||Ø{ Total amount of exposures retained by the bank to NIL Nil dj¦Ø idd j¦d|}|j¦i comply with minimum retention requirement (MRR) as àj¦¸}°Ø{Øi§}qj¦Ûj¦ on the date of Balance Sheet i Ø|}Øi§}q a) Off-balance sheet exposures NIL Nil }°yÎ| First Loss d| Others ~Û Ø|}j¦i§}q b) On balance sheet exposures NIL Nil }°yÎ| First Loss d| Others 4. iddj¦d}°ØãØj¦d Ø $PRXQWRI([SRVXUHVWRVHFXULWL]DWLRQWUDQVDFWLRQV NIL Nil i§}qj¦Û other than MRR i Ø|}Øqk a) Off-balance sheet exposures 159 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

¨¦ Particulars o¥ }â¥ S.No. Current Previous Year Year i) d}|}°ØãØj¦i§}q L ([SRVXUHVWRRZQVHFXULWL]DWLRQV NIL Nil }°yÎ| First Loss Î|d| Loss/Others ii) ØÛ}j¦}°ØãØj¦ i§}q LL ([SRVXUHVWRWKLUGSDUW\VHFXULWL]DWLRQV NIL Nil }°yÎ| First Loss d| Others ~Û Ø|}j¦i§}q b) On–balance sheet exposures NIL Nil L d}|}°ØãØj¦i§}q L ([SRVXUHVWRRZQVHFXULWL]DWLRQV NIL Nil }°yÎ| First Loss Î|d| Loss/Others LL ØØÛ}}°ØãØj¦i§}q LL ([SRVXUHVWRWKLUGSDUW\VHFXULWL]DWLRQV NIL Nil }°yÎ| First Loss d| Others i z~l°ØdØ ~ {Û}°j¦tÛj¦ A-2.12 Disclosure on Stressed Assets iqzh j¦oÛlu|j¦}°j¦tÛj¦ $ 'LVFORVXUHRIÁH[LEOHVWUXFWXULQJRI([LVWLQJORDQV ¥ oÛlu|ÎØili oÛlu|ÎØilih j¦Û oÛlu|ÎØilih j¦Û Year hj¦Ø¥d j¦Û k Amount of loans taken up for i§}qtvdØd{ No. of borrowers taken ÁH[LEOHVWUXFWXULQJ Exposure weighted average XSIRUÁH[LEO\VWUXFWXULQJ duration of loans taken up IRUÁH[LEOHVWUXFWXULQJ |j¦j¦¦} i|}Ûij¦¦} oÛlu|l oÛlu| lÛ¥j¦Ø lÛ¥j¦Ø j¦|}Î lj¦|j¦ &ODVVLÀHGDV &ODVVLÀHGDV13$ Before applying ~z Standard ÁH[LEOH After applying structuring ÁH[LEOH structuring ÏÛ¥)< |Nil |Nil |Nil |Nil |Nil ÏÛ¥ / FY:2017-18 4 1,423.93 266.29 - - eq|j¦ãØÛ^¥ àj¦j¦zj}}vÛ Ûd| Û}Û The scheme is withdrawn as per RBI circular DBR.No.BP BC.101/21.04.048/2017-18 dated 12.02.2018. ÛÛ101/21.04.048/2017-18z¤}lÎ iy j¦ j¦¥|ÛØlØ h }|l¥u| q| } A-2.12.2 Disclosures on Strategic Debt Restructuring Scheme (accounts which are currently under the }°j¦tÛj¦ ikØqetàvtd{ Î stand-still period) as on 31.03.2019 ¥ ikØ j¦Û }tÕlØÛk}~j¦ qÎ£hj¦eß§tÛ ¦} Ø qÎ£hj¦eß§tÛ ¦} Ø Year kqÎ£ Amount outstanding as on the ~ØÎikØ j¦ ~ { ÎlÎikØ j¦ ~ { ivÛd reporting date }tÕlØÛk}~j¦ }tÕlØÛk}~j¦ ¨¦j¦ Amount outstanding as on the Amount outstanding as on the lÎ reporting date with respect to reporting date with respect to No. of accounts where conversion of accounts where conversion of accounts debt to equity is pending debt to equity has taken place where SDR |j¦j¦¦} i|}Ûij¦¦} |j¦j¦¦} i|}Ûij¦¦} |j¦j¦¦} i|}Ûij¦¦} has been lÛ¥j¦Ø lÛ¥j¦Ø lÛ¥j¦Ø lÛ¥j¦Ø lÛ¥j¦Ø lÛ¥j¦Ø invoked &ODVVLÀHGDV &ODVVLÀHGDV &ODVVLÀHGDV &ODVVLÀHGDV &ODVVLÀHGDV &ODVVLÀHGDV standard NPA standard NPA standard NPA ÏÛ¥ )< |Nil |Nil |Nil |Nil |Nil |Nil |Nil ÏÛ¥ / Nil Nil Nil Nil Nil Nil Nil FY:2017-18 | | | | | | | eq|j¦ãØÛ^¥ àj¦j¦zj}}vÛ Ûd| Û}Û The scheme is withdrawn as per RBI circular DBR.No.BP BC.101/21.04.048/2017-18 dated 12.02.2018. ÛÛ101/21.04.048/2017-18z¤}lÎ

160 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement iivÛdq|j¦~ÎØ }Ø¥|j¦}°j¦tÛj¦ A-2.12.3 Disclosures on Change in Ownership outside SDR ikØqet vtd{j¦d Øl¥ØÎ Scheme (accounts which are currently under the stand-still period) (` j¦vÖ ` in Crores) d o ikØ j¦Û }tÕlØÛk}~j¦ qÎ£hj¦eß§tÛ qÎ£hj¦eß§tÛ qÎ£|iqÛj¦ Zones kqÎ£~àj¦ ¦} Ø/eß§tÛ j¦ ¦} Ø/eß§tÛ }°Ø¥j¦j¦Ûeß§tÛj¦ |Ø Amount outstanding as on lÛj¦¨¦j¦| ~Ø j¦lÛj¦¨¦j¦| ¨¦¸Ø }Ø¥|l the reporting date Îf|kØ j¦ ~ { }tÕl ÎlÎf|kØ j¦ }Ø¥|ÎlÎf| j¦|j¦|¥ ØÛk}~j¦ ~ { }tÕlØÛk kØ j¦ ~ { }tÕl Î Amount outstanding as on the }~j¦ ØÛk}~j¦ No. of reporting date with respect to Amount outstanding as Amount outstanding as on the account s accounts where conversion on the reporting date reporting date with respect to where banks of debt to equity/invocation with respect to accounts accounts where change in have decided of pledge of equity shares is where conversion of debt ownership is envisaged by to pending to equity/invocation of issuance of fresh shares or Effect change pledge of equity shares sale of promoters equity in ownership has taken place |j¦j¦¦} i|}Ûi |j¦j¦¦} i|}Ûi |j¦j¦¦} i|}Ûi |j¦ i|}Ûi lÛ¥j¦Ø j¦¦} lÛ¥j¦Ø j¦¦} lÛ¥j¦Ø j¦¦} j¦¦} j¦¦} &ODVVLÀHG lÛ¥j¦Ø &ODVVLÀHG lÛ¥j¦Ø &ODVVLÀHG lÛ¥j¦Ø lÛ¥j¦Ø lÛ¥j¦Ø as standard &ODVVLÀHG as standard &ODVVLÀHG as standard &ODVVLÀHG &ODVVLÀHG &ODVVLÀHG as NPA as NPA as NPA as standard as NPA ÏÛ¥ )< |Nil |Nil |Nil |Nil |Nil |Nil |Nil |Nil |Nil ÏÛ¥ / FY:2017- |Nil |Nil |Nil |Nil |Nil |Nil |Nil |Nil |Nil 18 eq|j¦ãØÛ^¥ àj¦j¦zj}}vÛ Ûd| Û}Û The scheme is withdrawn as per RBI circular DBR.No.BP. BC.101/21.04.048/2017-18 dated 12.02.2018. ÛÛ101/21.04.048/2017-18z¤}lÎ id|}|j¦d Øl¥Ø}q|j¦Øj¦}°j¦tÛj¦ i A-2.12.4 Disclosures on Change in Ownership of Projects kØqet v- tÛd{j¦d Øl¥ØÎ Under Implementation (accounts which are currently under the stand-still period) (` j¦vÖ ` in Crores) i}q|hkØ j¦Û k }tÕlØÛk}~j¦ qÎ£~àj¦|Ø }Ø¥|l Amount outstanding as on the reporting date j¦|j¦|¥Î |j¦j¦¦} lÛ¥j¦Ø |j¦}|l¥uØj¦¦} i|}Ûij¦¦} No. of project loan accounts &ODVVLÀHGDVVWDQGDUG lÛ¥j¦Ø lÛ¥j¦Ø where banks have decided to &ODVVLÀHGDV &ODVVLÀHGDV effect change in ownership standard restructured NPA ÏÛ¥)< |Nil |Nil |Nil |Nil ÏÛ¥ / FY:2017-18 |Nil |Nil |Nil |Nil d Ûde¥j¦z| j¦j}}vÛ Ûd| Û}Û ÛÛ The scheme is withdrawn as per RBI circular DBR.No.BP. j¦d|fq|j¦}lÎ BC.101/21.04.048/2017-18 dated 12.02.2018.

161 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 i z| j¦j¦z~l°ØdØ j¦ {Ûlu| A-2.13 Disclosure on the scheme for sustainable structuring j¦Ûq|}}°j¦tÛj¦ ii of Stressed Assets (S4A) as on 31.03.2019 (` j¦vÖ ` in Crores) qÎ iilj¦lÎi ~j¦l° ~j¦ kl}°{| kØ j¦Û k Aggregate amount Amount outstanding Provision held Number of accounts where S4A outstanding has been applied ãli ãl~Û In Part A In Part B |j¦j¦¦} lÛ¥j¦Ø 1,223.90 698.03 525.87 116.00 &ODVVLÀHGDV6WDQGDUG i|}Ûij¦¦} lÛ¥j¦Ø 1,177.61 937.70 239.91 - &ODVVLÀHGDV13$ ˆºÅ¥¸ TOTAL d Ûde¥ j¦ z| j¦ j¦ }} vÛ Ûd| Û}Û ÛÛ The scheme is withdrawn as per RBI circular DBR.No .BP. j¦d|fq|j¦}lÎ BC.101/21.04.048/2017-18 dated 12.02.2018. d Ûde¥|}¨¦ j¦d Ûde¥¡vÛ Ûd Û}Û RBI vide letter RBI/2017-18/131: DBR. No.BP. BC.101/21.04.048/2017-18 dated February 12, 2018 issued ÛÛ z Ü¦Û j¦{ a revised framework on Resolution of Stressed Assets and z l°ØdØ«j¦|}t|j¦i {ØÝ¦j¥¦qÛj¦Î withdrew the existing guidelines/instructions on resolution of Øyz l°ØdØ«j¦|}t|ÎØqzÝ¦j¥¦qj¦z l°Ø stress assets such as framework for revitalizing Distressed dØ« j¦ |Û|Ûj¦Ø j¦| j¦}¥t h |Û|Ûj¦ q| Assets, Corporate Debt Restructuring Scheme, Flexible qzzÛm¥{}q|hj¦oÛtÐ§o lj¦¥|ÛØj¦h Structuring of Existing Long Term Project Loans, Strategic tÐ§o lq| ivÛd ivÛdj¦dlØ« z Debt Restructuring Scheme (SDR), Change in Ownership d ØØj¦ }°ã z l°Ø dØ« j¦ zÛm¥j¦j¦ tÐ§o l outside SDR, and Scheme for Sustainable Structuring of Stressed Assets (S4A), etc. with immediate effect. Accordingly, ii dzqzz|z¥«|z¥«j¦}ÎeÛ the Joint Lenders Forum (JLF) as an institutional mechanism }°j¦ §ØhzØÜ¦ qiiÜ¦ qz l°ØdØ«j¦ for resolution of stressed accounts also stands discontinued. |}t|j¦iij¦ ylØ j¦Ûj¦¦}«j¦¥j¦ØyfãÛ Under the revised framework, the stand-still benefits for ylØj¦zl {ØÝ¦j¥¦j¦d Øl¥Øf|kØ«j¦i accounts where any of these schemes had been invoked but q|«ã|j¦ie|q|d««j¦Ûj¦d ãj¦l not yet implemented were revoked and accordingly these yj¦|dãÛØj¦l|ÎÛ j¦lydØz|e|kØ«j¦ accounts have been classified as per the extant RBI prudential norms on Income Recognition and Asset Classification. d|Ød }ÏlÛ¥j¦}qzd Ûde¥j¦}¥|z v« Further Supreme Court vide its judgement dated 02.04.2019 j¦d|lÛ¥j¦Øj¦lÎej¦d¥oo||d}| has held the February 12th Circular “Ültra vires as a whole”. j¦|¥j¦{Ü¦Ûj¦}}j¦C}¥Ø RBI has subsequently not issued any revised instructions / d{j¦ØÛj¦zÎ modifications in the matter till date.

162 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement i }°{|dj¦j¦Ød«j¦Ø A-3 Break up of Provisions and Contingencies i ã Î| kØ « d| }°{| dj¦j¦Ød« j¦ A-3.1 Break-up of provisions and contingencies appearing in Øe}°j¦Î¡ 3URÀW /RVV$FFRXQWLVDVXQGHU (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year |}¾ÎØ}°{| |}°kØØy ¹ Provision for depreciation on investment 158.62 768.20 kØvliÎØ (net of written back and including write off) t¤tkØvlid{h«i|}Ûij¦ Bad debts written off / Provision made 12,313.42 14,379.94 i}°{| |}°kØ towards NPA (net of written back) |j¦dØ«ÎØ}°{| Provision for standard assets -35.49 -369.02 j¦ ÎØ }°{| dylØ j¦« d }z j¦ Provision for taxes including deferred 264.63 -358.93 ÎØ }°{| j¦}°ØØ¥|j¦| taxes, and Wealth tax (net of reversal of provisions) d}~±|}Ùzdj§j§Ùi¡ 2WKHU3URYLVLRQDQG&RQWLQJHQFLHV }|l¥uØ|j¦d|j¦kØ«« qj¦ 3URYLVLRQWRZDUGVVDFULÀFHRILQWHUHVWLQ -121.02 -168.23 }ØlÎØ}°{| restructured standard and sub-standard accounts zlØqk}° {|ÎØ}°{| Provision for Country Risk Management 3.12 -22.34 d| e {k{vÖ àj¦j¦·z z|Û Others (includes provision for fraud, claim 470.02 207.75 kØ dzj¦}°{|Îà against bank, sensitive accounts etc.) ˆºÅ¥¸ Total i dyÛ}°{|}j¦}°j¦tÛj¦ A-3.2 Floating Provisions – Comprehensive Disclosures (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year i dyÛ}°{|kØ«dãj¦ D 2SHQLQJ EDODQFH LQ WKH ÁRDWLQJ 425.35 425.35 provisions account ~Û k¥«j¦ilidyÛ}°{| j¦Û E 7KH TXDQWXP RI ÁRDWLQJ SURYLVLRQV 0.00 0.00 made in the accounting year Û k¥j¦z|j¦ilivÐvf|j¦Û c. Amount of draw down made during 0.00 0.00 the accounting year vÛ dyÛ}°{|kØ«d Ø G &ORVLQJ EDODQFH LQ WKH ÁRDWLQJ 425.35 425.35 provisions account i dØzÛ®i§}q}}°{| A-3.3. Provision on Unhedged Foreign Currency Exposure– (` j¦vÖ / ` in Crores) Particulars o¥ }â¥ Current Year Previous Year i }° ãj¦}°{|kØ a. Opening balance provisions account 44.01 72.95 ~Û k¥«j¦l}°{|j¦Û b. The quantum of provisions made in 30.75 -- the accounting year Û k¥j¦z|¥j¦ÛlÛ c. Amount Reverse during the -- -28.94 accounting year vÛ }°{|kØj¦d Ø d. Closing balance in the provisions 81.80 44.01 account z| j¦Øj¦ oÎØzÛ®i§¤}qj¦} As on 31.03.2019, the amount of bank’s credit exposure against Unhedged Foreign Currency Exposure of borrowers attracting ` àj¦j¦dl°i§¤}qhj¦Ø¥j¦ Û}Ûi}°{| 80 bps provisions was Rs.1774.79 Crores. The additional RWA j¦vÖy`j¦vÖj¦dØ§Ø||Ø} qÛdj¦Øj¦} on this exposure is Rs. 440.74 crores against this additional i§¤}q}`j¦v×dv ij¦l minimum capital requirement is Rs.47.93 crores. i dØ|{««lt vÐvf| A-3.4 Draw Down from Reserves ÏÛ ¥ j¦ z| dØ |{« « j¦e¥ lt During the Financial Year 2018-19, there is no draw

163 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

}°Ø|{ lt o¥:| down from the reserves (March 31, 2018: Rs Nil). i j¦Ø«j¦}°j¦tÛj¦ A-4 Disclosure of complaints , l°Îj¦j¦Ø I. Customer Complaints Particulars o¥ }â¥ Current Year Previous Year i ¥j¦« Øj¦Ø«j¦Û k a. No. of complaints pending at the 13540 302 beginning of the year ~Û ¥j¦z|}°}Øj¦Ø«j¦Û k b. No. of complaints received during 12,14,864* 10,56,041* the year Û ¥j¦z||ØØj¦Ø«j¦Û k c. No. of complaints redressed during 12,00,989 10,42,803 the year vÛ ¥j¦d Ø« Øj¦Ø«j¦Û k d. No. of complaints pending at the 27,415** 13,540** end of the year j¦}°}Øj¦Ø««j¦Ø«j¦{| lØ¥ * Out of total complaints received, 154416 complaints fÛz| vÛ Øyfj¦dlz| vÛ j¦zl (Previous year 90498) resolved on the same day (D) and on the next day (D+1). j¦}°}Øj¦Ø «25855j¦Ø lØ¥13476 z| ** Out of these, 25855 nos. of complaints (Previous year j¦ ØÎ 13476 nos.) are pending for less than 30 days. ,, itÛi {Ûj¦Ø« II. ATM Complaints Particulars o¥ }â¥ Current Year Previous Year i ¥j¦«itÛi {Û Øj¦Ø« a. No. of ATMs complaints pending at 5,464 2067 j¦Û k the beginning of the year ~Û ¥j¦z|itÛi {Û}°}Øj¦Ø« b. No. of ATMS complaints received 5,24,603 3,26,458 j¦Û k during the year Û ¥ j¦ z| itÛi {Û |ØØ c. No. of ATMs complaints redressed 5,22,285 3,23,061 j¦Ø«j¦Û k during the year vÛ ¥j¦d Ø«itÛi {Û Øj¦Ø« d. No. of ATMs complaints pending at 7,782 5,464 j¦Û k the end of the year ,,, àj ¦lj¦}¸zilid{|¥ III. Awards passed by the Banking Ombudsman Particulars o¥ }â¥ Current Year Previous Year i ¥ j¦ « j¦¥|Ø | j¦i li a. No. of unimplemented Awards at the | 2 |¥«j¦Û k beginning of the year ~Û ¥j¦z| àj ¦lj¦}¸zili b. No. of Awards passed by the Banking 23 Ombudsman during the year |¥«j¦Û k Û ¥j¦z|j¦¥|Ø c. No. of Awards implemented during 25 |¥«j¦Û k the year vÛ ¥ j¦ d Ø « j¦¥|Ø | j¦i li d. No. of unimplemented Awards at the |Nil |Nil |¥«j¦Û k end of the year ioj¦ØÛdÇ|}j¦ÛyØ A-5. Status of Letters of Comfort , /HWWHUVRI&RPIRUW /2&·V LVVXHGGXULQJWKH&XUUHQW , oÐÜ¦j§{ }q Üoj§ ÙÜdÈ}~ idÜ )LQDQFLDO

164 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

,, j§j§oj§ ÙÜdÈ}~¬j§Ü¡oÜzÙ ,, &XPXODWLYH SRVLWLRQ RI /2&·V RXWVWDQGLQJ DV RQ àj¦ z¤ qÛ j¦i li oj¦ØÛ d| } Øy oÛ ØØÛ The LOC issued by the bank in the past and the qz j¦|||Î FXPXODWLYHÀQDQFLDOREOLJDWLRQLVDVXQGHU L d}|qj¦Ø¥d d|hzØd j¦}¥¦}ØÛ a) LOC issued during 2008-09 to Reserve Bank of New d| lÛ àj¦d¢Ü×¦ vÖz |qÛàv j¦ }¥j¦q¥j¦l tÛj¦Ø Zealand guaranteeing entire indebtedness of the wholly j¦ØÎiq¥ àj¦d¢Ü¦|qÛàvj¦j¦z|oj¦ØÛ owned subsidiary – Bank of Baroda (New Zealand) Ltd. d|}qÛj¦lyo¥j¦d| lÛj¦Û to its depositors and other creditors. As on 31st March q dvÐªt d àj¦ j¦ q j¦ iq h j¦ 2019 the subsidiary’s Deposits (net of Overdraft and Loan against Bank’s own deposits) are Rs. 306.38 crores and ` ` 6.27 | j¦vÖÎàØy ÁzØ j¦vÎà y outside liabilities are Rs. 6.27 crore (i.e. total liabilities of ` 312.65 j¦vÖj¦Ûj¦zØ yo¥j¦d| lÛ Rs. 312.65 Crores). The net worth of the subsidiary as on j¦Û|Ø`225.71j¦vÖÎe { àj¦}| 31st March 2019 is Rs. 225.71 Crores. The net contingent dj¦j¦zØ`86.94j¦vÖÎà liability on the Bank is Rs. 86.94 Crores in this regard. LL ÏÛ¥j¦z| àj¦| §Øfµ àj¦e ve t|| b) LOC was issued during the year 2010-11 to Bank Negara àj¦ ÛiovÛ de¥de¥ Ûi Û « àj¦j¦{Øj¦Û Malaysia upto our Bank’s 40% shareholding in the Joint ÛØj¦ àj¦d¢Ü×¦|lj¦dÇ|}qÛj¦Îz| j¦ Venture Bank – ‘India International Bank (Malaysia) j¦de¥de¥~Ûi~Ûj¦Ûj¦q`226.66j¦vÖ Bhd (IIBMB). As on 31st March 2019 the deposits of i d|zØi `2.45j¦vÖ dy¥Øj¦`229.10j¦vÖj¦Ûj¦ IIBMB are Rs. 226.66 crore and other liabilities are Rs. zØi ÖÎ z| j¦j¦de¥de¥ Ûi Ûj¦Û|Ø` 2.45 Crores (i.e. Total liabilities of Rs. 229.10 crore). The net worth of the IIBMB as on 31st March 2019 is Rs. 549.33 j¦vÖÎo j¦de¥de¥ Ûij¦ÏÛ¥j¦d Øz 549.33 crore. As the financial year end of IIBMB is 31st 9 j¦ ÎØ Î o¥ j¦ d j¦v dk}ÛØ i December, figure of 31st March 2019 have been taken liÎà from unaudited statements. i ØÛÛ}tÛ¥j¦fØ}z«j¦}|dq¥Ød A-6 Income earned for marketing third party products (` j¦vÖ / ` in crore) dj¦Û}°j¦Ø Nature of Income o¥ }â¥ Current Year Previous Year qÛ| Û}«j¦Û ¨¦ÛÎØ For selling life insurance policies 59.63 59.66 }°{| ÛqÛ| Ûq| Pradhan Mantri Jeevan Bima Yojana 7.82 6.31 lqÛ| Û}«j¦Û ¨¦ÛÎØ For selling non life insurance policies 42.62 33.91 odÜ ¦v}°q§t«j¦Û ¨¦ÛÎØ For selling mutual fund products 15.47 15.98 e§tÛ °j ¦lfØ}z Equity broking product 0.36 0.33 i qj¦Ø¥i qlj¦Ø|{ vÛe¥iiÜ¦ d Ø A-7 Transfers to Depositor Education and Awareness Fund (DEAF) (` j¦vÖ / ` in crore) Particulars o¥ }â¥ Current Year Previous Year vÛe¥iiÜ¦j¦d ØØj¦}° ãj¦ Opening balance of amount transferred to 429.31 403.77 DEAF qvÖ ¡¥j¦z|vÛe¥iiÜ¦j¦d ØØ Add: Amount transferred to DEAF during 186.61 36.05 the year mt«¡vÛe¥iiÜ¦¸z j¦}t}°Ø}Ø¥j¦ÛlÛ Less: Amounts reimbursed by DEAF 0.51 10.51 towards claims vÛe¥iiÜ¦j¦d ØØj¦d Ø Closing Balance of amounts transferred to 615.41 429.31 DEAF

165 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 Total Value Weighted Weighted j¦ãØ yl} j¦iz|j¦dØ Ending March 2018 Total Daily Averages of Q4 Daily Averages Value Value ,,,} qÛ|| Unweighted o¥j¦}ØoØy¥ØÎÛ j¦lãØ 178.82 16,165.17 173.57 61,229.55 55,182.27 54,934.05 Value 3,97,299.43 3,14,304.64 2,73,959.85 j¦ãØ Total Weighted Weighted Total j¦y}uØ 2018 j¦iz|j¦dØ Total Adjusted Value Total j¦qØ Value e Pillar 3 disclosures including leverage ratio q|j¦}Ø}°yØÎÛ Daily Averages of Q1 Ending June Daily Averages j¦lãØ Total Unweighted Total ular no DBR.NO.BP.BC. 80/21.06.201/2015-15 dated ular no DBR.NO.BP.BC. qd|}Ødo|{j¦qd|}ØÎØ . Total Value Weighted j¦ãØ September 2018 z| j¦o¥ Total Adjusted Value Total j¦qØ Value ØÎÛj¦iz|j¦dØ Ø j¦}Ø¸ØÛ Daily Averages of Q2 Ending Daily Averages j¦lãØ Total Unweighted Total

Total Value Weighted A-8 Liquidity Coverage Ratio A-8.1 Quantitative Disclosure j¦ãØ Total Total Adjusted Value Total Value j¦qØ Daily Averages of Q3 Daily Averages Ending December 2018 }} vÛ Ûd Û}Û ÛÛ ØÎÛj¦iz|j¦dØ j¦d| ,,,Ý¦j¥¦j¦ØÎØ àj¦«j¦ Unweighted z j¦}ØØØÛ j¦lãØ

124.56% 120.08% 138.52% 135.08% 112.40% Total Value Weighted 12,87,811.75 11,79,196.97 12,16,339.66 11,28,916.84 10,59,406.08 12,87,811.7510,33,908.52 11,79,196.97 9,81,994.38 12,16,339.66 8,78,082.56 11,28,916.84 8,35,733.71 10,59,406.08 9,42,511.64 j¦ãØ Û^¥ àj¦j¦ 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,370.26 3,370.26 4,518.46 4,518.46 2,917.99 2,917.99 2,980.44 2,980.44 14,432.60 14,432.60 j¦iz|j¦dØ 70,115.51 57,327.58 54,543.85 50,044.07 55,863.75 51,579.78 67,874.49 12,327.46 12,327.46 14,864.91 14,864.91 14,845.67 14,845.67 25,673.40 25,673.40 11,505.78 11,505.78 36,629.76 384.58 21,195.36 632.48 38,658.99 2,824.87 35,451.26 Ending March 2019 Total Adjusted Value Total Total j¦qØ Daily Averages of Q4 Daily Averages Value 7,64,189.32 38,209.47 7,90,619.53 39,530.98 7,88,330.952,90,916.125,06,864.25 39,416.55 2,32,276.99 0.00 9,30,569.64 4,71,771.78 3,28,696.44 2,31,608.13 46,528.485,03,493.99 4,75,104.37 8,24,590.47 2,28,906.73 0.00 2,27,714.015,23,542.39 4,67,253.32 41,229.52 2,27,089.67 1,94,056.57 15,706.27 5,09,761.10 5,27,898.05 2,18,302.46 4,72,186.38 417.91 15,836.94 2,24,796.02 4,86,710.03 1,57,289.96 2,30,785.12 5,39,964.67 5,06,780.66 16,198.94 2,15,322.02 0.00 4,72,277.43 5,54,177.23 1,31,716.69 2,16,352.53 16,625.32 5,20,550.44 0.00 15,644.05 3,46,502.26 2,82,162.794,53,247.53 3,48,108.56 3,39,874.95 2,94,812.17 4,23,847.77 3,77,380.47 3,45,488.73 3,26,220.00 4,71,903.21 4,44,403.22 3,80,624.66 5,47,728.97 4,58,707.80 3,85,652.08 3,29,067.47 39,58,924.63 3,57,683.00 40,21,379.0031,94,735.31 3,62,606.9213,44,996.70 3,19,473.53 40,34,089.23 7,55,789.75 32,30,759.4813,44,996.70 3,63,992.38 3,23,075.95 11,86,785.73 7,55,789.75 7,02,566.21 44,38,966.48 32,45,758.28 11,86,785.73 10,62,732.67 3,24,575.83 7,02,566.21 3,97,368.17 6,35,538.31 35,08,396.85 40,20,304.68 10,62,732.67 10,77,860.13 3,60,800.94 6,35,538.31 3,50,839.68 6,36,472.17 31,95,714.21 10,77,860.13 11,32,528.68 3,19,571.42 6,36,472.17 6,52,843.21 11,32,528.68 6,52,843.21 Unweighted o¥j¦}ØoØy¥ØÎÛ j¦lãØ {«qÛãØ loss of funding on j¦Ûk}Ûj¦d{Û||ÎÛ Î Û}Û ÛÛz| j¦qe¥ j¦Øz|z¥«j¦ debt products +LJK4XDOLW\/LTXLG$VVHWV High Quality Liquid Assets (HQLA) Total &DVK2XWÁRZV Retail deposit and deposits from small business customers, of which: Stable Deposits Less Stable Deposits Unsecured wholesale funding, of which: Operational deposits (all counterparties) Non-operational deposits (all counterparties) Unsecured debt Secured wholesale Funding Additional requirements, of which 2XWÁRZVUHODWHGWRGHULYDWLYHH[SRVXUHV and other collateral requirements 2XWÁRZVUHODWHGWR Credit and liquidity facilities Other contractual funding obligations Other contingent funding obligations CASH OUTFLOWS TOTAL Secured lending (e.g. reverse repos) Inflows from fully performing exposures Other cash inflows CASH INFLOWS TOTAL HQLA TOTAL NET CASH OUTFLOWS TOTAL RATIO LIQUIDITY COVERAGE |j¦ {|«} o|{ j¦q}°j¦tÛj¦ d|}ØLiquidity Coverage Ratio (LCR) Disclosure iÛd foolÐÜÙ dÙ¡ foolÏÛØdØ io§¤ii }j§{ÜÂ~±Ï tqi âtj¦ l°Îj¦«j¦Ûq q|« yq mti ¡yq dØyj¦|{|q ¡ }o|lØq ãÛj¦f t}t¥«j¦Û l}o|lØq ãÛj¦f t }t¥«j¦Û d}°ØãØh }°ØãØyj¦ÏÛ| dØ§Ødj¦Øi q| vÛti§}qØyd| }Ç¥j¦ dj¦Ød« {Ø Á}°Î hfØ}z«}|{«j¦ÛÎ| {Ø Á}°Î hi o|{{i d| zlØ|{| {Û {Øi d|dj¦j¦|{| {Û {Øi j§}j§{ÜÂ~±Ï ~±ÙäÙf| {} q Ü¦ ~ }¥Ø¡dq¥j¦i§}q¥d Ø}°¥Î d||j¦zÛd Ø}°¥Î j§}j§{Üd¡Ù~±¦Ï j¦io§ii j¦||j¦zÛ Á}°Î o|{j¦qd|}Ø i o|{j¦qd|}Ø iØj¦}°j¦tÛj¦ 1 2 3 (i) (ii) (iii) 4 5 (i) (ii) (iii) 6 7 8 9 10 11 12 13 14 15 o|{j¦qd|}Ø iÛd }°j¦tÛj¦o¥ Liquidity Coverage Ratio (LCR) Disclosure - March 2019 àj¦j¦|¡ àj¦d¢Ü×¦ vÖz Name of the Bank : Baroda }°j¦tÛj¦j¦|dj¦Î}°j¦tÛj¦k}Ûj¦ }qÛãØÛ^¥ àj¦j¦}} vÛ ÛdvÛ March 31, 2015 on Prudential Guidelines Capital Adequacy and Liquidity Standards Amendments requires banks to make applicabl } qÛ}¥}ØØØyo|{ dated July 01, 2015 on Basel III Capital Regulations read together with RBI circ RBI Circular DBOD.NO.BP.BC.1/21.06.201/2015-16 and liquidity coverage ratio under the Basel- III framework. These disclosures have not been subjected to audit by auditors

166 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement ilØj¦}°j¦tÛj¦ A-8.2 Qualitative Disclosure: q|Û àj¦ ãØÛ q¥ àj¦ j¦ o|{ From 1st January 2015, the bank has implemented j¦qd|}Ø iÛd {Ûz|z¥«j¦¨¦|Ø guidelines on Liquidity Coverage Ratio (LCR) of the j¦zlÎ Reserve Bank of India. iÛd |j¦ j¦ f´ Î |ÅØ j¦| Î j¦ àj¦ The LCR standard aims to ensure that a bank maintains ãÎØio§iij¦}¥}ØØj¦ |ikØj¦f an adequate level of unencumbered HQLAs that can be dØ{j¦ØØ {Ûz j¦ÛyØ«j¦ vz| j¦ converted into cash to meet its liquidity needs for a 30 iej¦Ûo|{ {Ûdj¦Øj¦Û}Ø¥j¦i|j¦zÛ FDOHQGDUGD\WLPHKRUL]RQXQGHUDVLJQLÀFDQWO\VHYHUH }Ø¥Øj¦qj¦iÛdØy|l|Û {Ûf} liquidity stress scenario. The LCR and monitoring tools are applicable for Indian banks initially w.e.f. 1st January }° ã zq|ÛãØÛ àj¦«j¦il°Ø¡ 2015 at whole bank level only i.e. on a stand-alone basis àj¦Ø}lÎdy¥Økd«j¦qizÛ}o| including overseas operations through branches and ÎØtàvd|d{}lÎài ~z zq|Û subsequently at consolidated basis w.e.f. 1st January j¦Ød{}dy¥Ømi zÛd| l 2016 i.e. including domestic and overseas subsidiaries. ÎØlÎ l The LCR has two components: iÛdj¦zmtj¦Îà¡ (i) The value of the stock of high-quality liquid assets L z l°Ø yØ foolÏ Ø dØ (HQLA) in stressed conditions- the numerator. io§ii j¦t¢j¦j¦|t d lj¦ LL 7RWDO QHW FDVK RXWÁRZV 7KH WHUP 7RWDO QHW FDVK LL j¦ | |j¦z Î¥}°Î¡ lØ j¦ v z| RXWÁRZVLVGHÀQHGDV7RWDOH[SHFWHGFDVKRXWÁRZV z l°Ø d{ j¦ i |z¥t z l°Ø } PLQXV 7RWDO H[SHFWHG FDVK LQÁRZV LQ WKH VSHFLÀHG Cj¦d||Ø|j¦z Î¥}°Î Cj¦d||Ø|j¦z stress scenario for the subsequent 30 calendar days d Ø}°¥Îj¦mtj¦Cj¦||j¦z Î}°¥Î }ãØ (the stressed period) the denominator. ÎØÎv|¢|t ãqj¦ LCR = 6WRFN RI +LJK 4XDOLW\ /LTXLG $VVHWV7RWDO1HW iÜd foolÐÙ dÙ¡j§t£j§dl &DVK2XWÁRZVRYHUWKHQH[WFDOHQGDUGD\V! j §¡v {}¡j§{ }j§}}j§{Ï~±¦Ï! According to RBI, the LCR will be introduced in a ãØÛ^¥ àj¦j¦d|iÛdo ·¦}«l phased manner starting with a minimum requirement j¦qilqq|Û||Ød ã of 60% from January 1, 2015 and reaching minimum Îj¦q|ÛØj¦||ØØj¦Îl 100% on January 1, 2019 q|Û q|Û q|Û q|Û q|Û January 1 2015 January 1 2016 January 1 2017 January 1 2018 January 1 2019 ||ØiÛd 60% 70% 80% 90% 100% Minimum LCR ãØÛ^¥ àj¦j¦z| j¦o¥j¦z|z¥«j¦d| *As per the RBI guidelines dated 31st March 2014 the Bank àj¦|ÏÛ¥o¥j¦iiÛd}°j¦tÛj¦ij¦d{ KDVPDGH/&5GLVFORVXUHRQVROREDVLVIURPWKHÀQDQFLDO\HDU }j¦Îz| j¦q|ÛãØÛ~àj ¦lfµl}°Û} ending March 2016. In terms of extant guideline, disclosure on consolidated basis was applicable to the Indian banking j¦Ød{}}°j¦tÛj¦j¦lqzz|z¥ j¦d| st q|ÛÎ|¥j¦i~àj¦j¦iÛd}°j¦tÛj¦ system from 1 January 2016. As starting from January 2017, banks has to disclose LCR on daily average basis, hence z|j¦dØj¦d{}j¦|Îei~àj¦|o¥j¦ bank has computed LCR on daily average basis both for Solo }ØØÎÛj¦iij¦i j¦Øz| d{}z|j¦dØ and Consolidated Level for the quarter ended March 2017. }iÛdj¦Ûl|j¦ÛÎ àj¦|o¥j¦}ØØØÛ¥ %DQN KDV DOVR GLVFORVHG /&5 IRU WKH ÀQDQFLDO \HDU HQGLQJ j¦iãÛiÛd}°j¦tÛj¦j¦Îq ØÎÛØe¥ March 2018, which consisted of daily averages for Q1, Q2, ØÎÛdØe¥j¦iz|j¦dØÎ Q3 and Q4. io¨iij§Ü¡ o} &RPSRVLWLRQRI+4/$ o¥ j¦ }Ø ØÎÛ j¦ i z|j¦ dØ j¦ d{ } Based on daily averages for the quarter ended March dØ§Ø iid }°ØãØ£ io§ii j¦ d{j¦Ø Î 2019, Facility to avail Liquidity for Liquidity Coverage Ratio dy¥ØÎfj¦~zØØj¦qd|}Øj¦ãfu| constitutes the highest portion of HQLA i.e 52.28% followed by excess SLR securities which constitute 22.88%. Level 2 ÎØ{qj¦io§iij¦ÎØj¦ÛdØ assets which are lower in quality as compared to Level 1 qj¦Øj¦ÛdØ«j¦ÛØ|«lÏ«||ÎÎj¦ assets, constitute nominally 0.88% of total stock of HQLA d{j¦Ød|¥Øj¦|j¦io§iij¦Î against maximum mandated level of 40%.

167 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

foolÏÛØdØ io§ii High Quality Liquid Assets (`HQLAs) io§ii dØ d z|}°ØØ Average percentage contribution to HQLA dØ Level 1 Assets Îy«|j¦zÛ Cash in hand 3.16% d{§Ûdd Excess CRR balance 9.15% ||Ø iid dj¦Ø j¦ d j¦Û Government Securities in excess of minimum SLR }°ØãØ requirement 22.88% iiiÜ¦ j¦ d Øl¥Ø d Ûde¥ ¸ d|Ø Û Øj¦ Government securities within the mandatory SLR d|¥iiddj¦Øj¦ØÎØj¦Û}°ØãØ requirement, to the extent allowed by RBI under MSF (presently to the extent of 2 per cent of NDTL Ø¥|«iiiÜ¦j¦iØyd|Øi|vÛtÛij¦Û as allowed for MSF) }°ØØÛØj¦ 8.05% ,,|j¦Ûj¦Øtj¦j¦d Øl¥Øj¦–t Marketable securities issued or guaranteed by zÛ }°ãd«¸qÛj¦ÛlÛdy}°ØãØ q foreign sovereigns having 0% risk-weight under %DVHO ,, 6WDQGDUGL]HG $SSURDFK FRXQWU\ZLVH l}°ØãØ j¦ ØjØ¦d Øl¥Øz details to be provided under memo item no.1) 3.60% o|{j¦qd|}Øj¦iØØÎØ{ Ø¥| Facility to avail Liquidity for Liquidity Coverage «iiÜ¦ij¦iyd|Øi|vÛtÛij¦Û}°ØØ Ratio(presently to the extent of 9 per cent of NDTL as allowed for MSF) ÛØj¦ 52.28% j¦qØdØ Total Adjusted Level 1 Assets 99.12% j¦idØ Total Adjusted Level 2A Assets 0.87% j¦ ÛdØ Total Adjusted Level 2B Assets 0.01% io§iij¦j¦t¢j¦ i Û Total Stock of HQLAs = Level 1 + Level 2A + Ûj¦qØÛj¦iqØ Level 2B – Adjustment for 15% cap – Adjustment 100.00% for 40% cap iÜd j§~±kÏj§ 0DLQGULYHUVRI/&5 Î|o¥j¦}ØØÎÛj¦z||io§ii The Group, during the three months ended March 31, 2019, had q¥| j¦ z j¦ |i k y ej¦ d Øl¥Ø iÛd j¦Û ||Ø maintained average HQLA (after haircut) of Rs.1, 287,811.74 million. As against the average requirement of Rs. 1,033,908.52 million at dj¦Øj¦d{dØ âØ|yÛio§ii a minimum LCR requirement of 100%. HQLA is primarily driven k}||Øiidj¦d{§«j¦Û}°ØãØ«q¥|tv l by government securities in excess of minimum SLR, the extent Ü¦tÛ iiiÜ¦ j¦ØÎØd|ØÛØyo|{j¦qd|}Øj¦Û{ allowed under the Marginal Standing Facility (MSF) and the Facility }°}Øj¦|}d{ØÎej¦dio§iij¦ÎØ}¥mtj¦«j¦d Øl¥Ø to Avail Liquidity coverage ratio. Also, cash, excess CRR maintained |j¦zÛãØÛ^¥ àj¦ØyzÛj«¦®Û àj¦«j¦}i§ÛddØyzÛ with RBI and other overseas central banks, securities issued by foreign sovereigns are important factors of HQLA. Level 2 HQLA j¦«¸qÛ}°ØãØ ÎàØj¦io§ii«kØ¡iid primarily consisted of AA- and above rated corporate bonds and fg}j¦tvj¦}¥t ¢vdqj¦}°}Î commercial papers. d¡Ù¢d|~ Ù¦}Ùz~ ¡Ù~ Ù¦} ,QWUDSHULRGFKDQJHVDVZHOODVFKDQJHVRYHUWLPH j¦Û |j¦ dj¦Ød j¦ } q|Û }áÛ LCR on consolidated basis were 121.96%, 121.24% and 120.69% Øy o¥ iÛd ¨¦¡ 121.96 121.24 Øy as at the months ended January 2019, February 2019 and March 120.69y 2019 respectively as against the regulatory requirement of 100%. }|}±Ù¬j§¡j§}¯ &RQFHQWUDWLRQRIIXQGLQJVRXUFHV $VLJQLÀFDQWFRXQWHUSDUW\LVGHÀQHGDVDVLQJOHFRXQWHUSDUW\RUJURXS ÎØ}¥j¦f t}t¥«j¦e}°j¦}ãØj¦qØÎj¦ij¦ij¦j¦f t RIFRQQHFWHGRUDIÀOLDWHGFRXQWHUSDUWLHVDFFRXQWLQJLQDJJUHJDWHIRU }tÛ¥ÎØ}¥j¦f t}t¥«j¦qvÖÎd l|Îq|j¦j¦Î PRUHWKDQRIWKHEDQN·VWRWDOOLDELOLWLHV7KHVLJQLÀFDQWFRXQWHUSDUW\ àj¦j¦Ûj¦zØd««d{j¦Îo¥j¦ÎÏ}¥j¦f t}t¥ Deposit as of 31st March 2019 was from “Employees State Insurance j¦Ûq j¦¥oÛq Û|ldy¥Ø¤j¦zØd j¦2.53ÎÛ Corporation” i.e. 2.53% of Global Liabilities. ij¦ÎØ}¥kØfØ}zj¦e}°j¦}ãØj¦qØÎj¦ $´VLJQLÀFDQWLQVWUXPHQWSURGXFWµLVGHÀQHGDVDVLQJOHLQVWUXPHQW ij¦ lkØfØ}zÎÛkØ«fØ}z«j¦Îq|j¦Û product of group of similar instruments/products which in aggregate j¦ àj¦j¦Ûj¦zØd««d{j¦Î|{lØkØfØ}z«j¦ amount to more than 1% of the bank’s total liabilities. Example of

168 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement fzÎÎ¢q q«j¦}°}zÛm¥{j¦d{j¦ IXQGLQJ LQVWUXPHQWVSURGXFWV ZKROHVDOH GHSRVLWV FHUWLÀFDWHV RI ¢veØzo¥j¦ÎØØ}¥kØfØ}zÎq GHSRVLWV ORQJ WHUP ERQGV HWF 6LJQLÀFDQW LQVWUXPHQWSURGXFW DV of 31st March 2019 were Wholesale Deposits i.e. 7.55% of Global dy¥Ø¤j¦zØd j¦zÛm¥{ ¢vdy¥Ø¤j¦zØd j¦ Liabilities, Long Term Bonds i.e. 1.59% of Global Liabilities and dq j¦}°}dy¥Ø¤j¦zØd j¦ÎÛ &HUWLÀFDWHRI'HSRVLWVLHRI*OREDO/LDELOLWLHV ij¦d{} j¦j¦Û¥qj¦Ø¥d ÎÛj¦qj¦ Top 20 depositors of the bank on solo basis constitute 7.26% of our % Î total deposits. vÛtÛi§}qd ãØ }Ç¥j¦j¦¢¡ Derivative exposures and potential collateral calls: yo¥j¦ àj¦j¦vtÛi§}q||d|Îà¡ The bank’s derivative exposure as on 31st March 2019 is as under:

¨¦ Description (` j¦vÖ / ` in S.No. Crores) 1 vÛtÛi§}^j¦Ûj¦}|j¦ Notional amount of Derivative exposure 307,435.72 2 oi§}^}·Øj¦d|i§}^ Exposure as per Current Exposure method 10,139.76 3 dlz|«j¦ivÛtÛi§}^ ([SHFWHGRXWÁRZIRU'HULYDWLYHH[SRVXUHIRUQH[WGD\V (245.54) iÛd«®o¡ Currency mismatch in the LCR: As per the RBI guidelines while the LCR standard is required to ãØÛ^¥ àj¦j¦|z¥|qÎ j¦ij¦ÎÛ®j¦iiÛd be met on one single currency, in order to better capture potential |j¦j¦d|}|dj¦ÎÎÛ ã®o} ÎØ| currency mismatch the LCR in each currency needs to be k|j¦i}°Øj¦®j¦Û|l|Ûdj¦ÎØz| àj¦z|j¦d{ monitored. Accordingly, Bank is maintaining LCR on daily basis in }ãØÛ}i«iÛd|ÅØj¦ÎÎdfj¦ÛØ||j¦ INR and the same is compared against the regulatory requirement, dj¦Ød«j¦yj¦ÛqØÛÎj¦|Ød|ÎØ}¥®d« ÎØ}¥® EXW RQ RWKHU VLJQLÀFDQW FXUUHQFLHV $ VLJQLÀFDQW FXUUHQF\ LV RQH fj¦ÎØÎàqÎ f®«z¥Ûle¥j¦zØi àj¦j¦Ûj¦zØd« where aggregate liabilities denominated in that currency amount j¦fd{j¦ÎØÛÎ j¦ {« àj¦C ÛidiÛdtj¦ to 5 per cent or more of the bank’s total liabilities) bank is preparing d Øl¥ØãØÛ^¥ àj¦j¦j¦d{}}°ØØj¦|ÎØiÛdØ LCR on monthly basis for the submission to RBI under j¦ØÎØyfj¦Û|l|Ûj¦ØÎ àj¦j¦}°Øj¦ÎØ}¥®j¦i “BLR-4 – LCR” and to monitor the same. Bank is not required to |j¦Ûd«j¦d|}iÛd|ÅØj¦|j¦Ûdj¦Ø|ÎÛ Î PDLQWDLQ/&5DVSHUUHJXODWRU\OLPLWVRQHDFKVLJQLÀFDQWFXUUHQF\ o¥Î}|}ÎÏ}¥zÛ®d«j¦iiÛd 7KH/&5IRUWKHVLJQLÀFDQWIRUHLJQFXUUHQFLHVDVDWWKHPRQWK |||Î¡ ended March 2019 is as under: ¨¦ S.No. ®/ Currency iÛdj¦ØLCR level (%) 1. ivÛ/ USD 294.56 2. qÛ Û}Û/ GBP 24.88 3. e¥d/ EUR 329.17 o}| ~±¡|} j§Ü j¬§¯Üj§ j§Ü vl±Ü j§ Ùz Ï j§Ü 'HVFULSWLRQ RI WKH GHJUHH RI FHQWUDOL]DWLRQ RI OLTXLGLW\ ej§e¬j§Üo~ ~ j§¡{ PDQDJHPHQWDQGLQWHUDFWLRQEHWZHHQWKHJURXS·VXQLWV The liquidity management for the Bank on enterprise wide fµd{} àj¦j¦io|{}° {|j¦ÛqÛ|zj¦ basis is the responsibility of the Board of Directors. Board of vj¦ÛÎ|zj¦ vd}|ÛÎqÛ|zj¦ vj¦ÛØ Directors has delegated its responsibilities to a Committee j¦qCqk}° {|}|zj¦ v j¦ÎqØÎà}zØÎ RIWKH%RDUGFDOOHGDVWKH5LVN0DQDJHPHQW&RPPLWWHHRI ÎØã||}°j¦j¦qk«Øyo|{}ej¦}°ãj¦ Ûo Board”. The Committee is responsible for overseeing the Î ·Ø}j¦ifÏzÛÎ inter linkages between different types of risk and its impact on liquidity. Î àj¦«iii}¢Ûl°}ÎqÎj¦ãÛØo|{i q Bank has Group ALM Policy which provides the broad guidelines zqkj¦ oØj¦|j¦i Îzz|z¥zØÎz« under which all the entities within the Group operate in terms of «}oØ àj¦j¦Ûej¦e Ûiii}¢Ûi Îiii liquidity and interest rate risk. The bank’s entities operating in foreign countries manage their operational liquidity or liquidity }¢Ûz| j¦d|¦}d}|Û}o|o|{d}{o|{ in the short-term on their own on an ongoing basis as per both lØd{} ÎÛ}° |{j¦ØÛÎ~àj¦j¦Ûo|{i respective territory’s ALM policy and Group ALM policy. The zÛ}j¦~qqk}°~ {|j¦Û¢|t l àj¦j¦qk}° |{| monitoring of liquidity and interest rate risk management of the ãlj¦l vd¢Ü¦¸j¦ÛqØÛÎ overseas operations of the bank is being done by the Bank’s *OREDO0LG2IÀFH $/0&HOO RI5LVN0DQDJHPHQW'HSDUWPHQW

169 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 iii Î j¦Û }¢Û j¦ { « z |z¥ q Øj¦ j¦ The guidelines of the Group ALM policy, unless ¦}ât}°}Ø|ÎzÛ}o|««ãÛlj¦iqØ RWKHUZLVH VSHFLÀFDOO\ H[HPSWHG DSSO\ WR RYHUVHDV operations as well. All the legal entities of the bank i.e.- Î àj¦j¦ÛãÛ{|j¦ yi dy¥Ød| l ÏfµØy subsidiaries, joint ventures and associates manage ÎlÛ lØ d}| |qÛ }°« d}| ¢v Øy their operational liquidity on an ongoing basis at their o |{ dj¦Ø j¦ d| d}| }° |{ j¦ØÛ Î d}|Û own according to their business models and liquidity |qÛ iii }¢Û kØ Î o j¦ {|j¦ yi àj ¦l requirement. As to the legal entities carrying out banking j¦ØÛÎ fzj¦z|z¥ yÎÛãØÛq¥ business, they have their own ALM Policy in line with the àj¦j¦z|z¥ e| qqzj¦vÖÎf|j¦d|j¦¥ host country guidelines as well as RBI guidelines whichever j¦ØÛÎ is more stringent. i}°yj¦Ø}°}Øj¦f{ {Û}°} }ÛiiÛ $3ULRULW\6HFWRU/HQGLQJ&HUWLÀFDWH 36/& àj¦|¥j¦z|||kØ}ÛiiÛj¦ÛkÛzd ¨¦Û The banks has purchased & sold the following PSLCs during j¦ÛÎ the year:- (` j¦vÖ / ` in Crore) ¨¦ ÜCategory k Ü{ ©§Ü Sr. No. Purchase Sale 1. }ÛiiÛj¦ PSLC Agriculture - 3,800 2. }ÛiiÛ| PSLC General - 5,000 3. }ÛiiÛâtÛ Øj¦| PSLC Small and Marginal Farmers 1,800 800 j§Total 1,800 9,600 idl°«j¦tÐ§o lmi rfµ iiie¥ A-10 Disclosure in term of RBI Circular No. DBR.No.BP. ij¦ lÛtÐ§o l }ãØÛ^¥ àj¦j¦}} j¦ BC.18/21.04.048/2018-19 dated January 1, 2019 on vÛ Ûd Û}Û ÛÛz| j¦q|Û ‘Restructuring of Advances – Micro, Small and Medium j¦d|«}°j¦tÛj¦f}¥§Ø|z¥«j¦d Øl¥Øo¥ Enterprises (MSME) Sector’ (One Time Restructuring), MSME accounts restructured under above instructions during the j¦}Ø¥j¦z|tÐ§oj¦iliiiie¥kØ st |||Îà year ended 31 March, 2019 as under: - No. of Accounts Restructured Amount (Rs. in Crore) tÑ¨o j§ilikÙ¬j§Ü¡k j§ v×¬ 5,640 190.75 % 'LVFORVXUH LQ WHUPV RI $FFRXQWLQJ 6WDQGDUGV $6 Ü e¡tÜt¥td£ÝØ§ot¦v¦ij§f¡tt¥d£ÝØ§e¡v de¦Üide¦ LVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI ¹ q Üij§f¡t¡ltávv¦ ii j§¡¡|¬~±j§tÜj§ ,QGLD ,&$, Ü iid|j§i}äi¡Ï}~¦d|ÏÙ{ % 1HW 3URÀW RU /RVV IRU WKH SHULRG 3ULRU 3HULRG ,WHPV Ùzk¡j§}}ÜÙ ii ¡~ Ù¦} ij§f¡t¡ltávv¦ DQG &KDQJHV LQ $FFRXQWLQJ 3ROLFLHV $FFRXQWLQJ 6WDQGDUG ¥j¦ik j¦||ÛØ j¦e¥}Ø¥||ÎÛ No change in accounting policy for the year 2018-19. Ü j§¦o Üä ij§f¡t¡ltávv¦ %(PSOR\HH%HQHÀWV $FFRXQWLQJ6WDQGDUG Üáj§}de¦Üide¦{¥ q Ük¡j§}}j§¡ ii j§ % 7KH %DQN KDV DGRSWHG WKH $FFRXQWLQJ 6WDQGDUG d~}Ï $6 LVVXHGE\,&$, Ûl°otÛ B-2.2 Gratuity àj¦d}|ij¦¥o«j¦qj¦ àj¦|Ïdy The Bank pays gratuity to employees who retire or resign }° ãj¦}£oÕj¦Ûd j¦ zØl}zØÎàl°otÛj¦ IURP%DQN·VVHUYLFHDIWHULQLWLDOVHUYLFHSHULRGRIÀYH\HDUV ãlØ|j¦ØÎ àj¦}°Øj¦¥ãlØ|j¦Ûq|Ûel°otÛ Accordingly, the Bank makes contributions to an in-house j¦ÛÜ ¦vlj¦iij¦d Øj¦|j¦d z|}°z|j¦Ø trust, towards funding this gratuity, payable every year. In Îl°otÛ|{j¦|«j¦d|¦} qzØ|·Øz accordance with the rule of Gratuity Fund, actuarial valuation of gratuity liability is calculated based on certain assumptions dâvÖ|tÜ¦j¦d||lØÎi}Øej¦e¥ regarding rate of interest, salary growth, mortality and staff h Û j¦j¦}·Øj¦d{}l°otÛzØj¦ Û j¦j¦ attrition as per the Projected Unit credit actuarial method. j¦Ûl|j¦ÛqØÛÎ|{«j¦|ãØj¦¸ The investment of the funds is made according to investment |{¥Ø|}·Øj¦d|j¦qØÎ pattern prescribed by the Government of India.

170 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

ãlØ|j¦Ûq|Ûl°otÛj¦Ûl|ã||q|d«j¦ØÛj¦ The gratuity payable is worked out by way of three j¦ÛqØÛÎØyej¦ij¦¥o«j¦i}Ø|{¥qq| different schemes and the entitlement is based on what j¦¥o«j¦id{j¦ãj¦ÛÎfj¦d{}j¦ÛqØÛÎ LVPRVWEHQHÀFLDOWRHPSOR\HHV Û}«| B-2.3 Pension Û àj¦d¢Ü×¦ vÖz d}| j¦¥o« q|Î«| }«| j¦ j¦} %%DQNSD\VSHQVLRQDGHÀQHGEHQHÀWSODQFRYHULQJ o|Îdij¦¥o«j¦q|Î«|j¦fj¦ the employees who have opted for pension and also ~z} Øj¦}¥ àj¦«j¦¥ã ãÎf|Î« to the employees joining the bank’s service on or after 29.9.1995 but before 01.04.2010. The plan provides |z¥tãØy|Ïq|j¦d Øl¥Ø}«|j¦ãlØ| for a pension on a monthly basis to these employees j¦ØÎÎq|j¦¥o«j¦ àj¦d¢Ü×¦ vÖz j¦¥oÛ on their cessation from service of the Bank in terms of }«||j¦d{Û|f|j¦ àj¦âvÖ|j¦}ÅØ¤j¦ Bank of Baroda (Employees’) Pension Regulations, d{}}«|}°z|j¦|j¦Û{}°z|j¦ØÛÎ àj¦d¢Ü×¦ 1995. Employees covered under Bank of Baroda vÖz j¦¥oÛ }«||j¦d Øl¥Øj¦¥oÛ (Employees’) Pension Regulations, 1995 are not ã|{« àj¦j¦d z|j¦i}|ÎÛ Î eligible for Bank’s contribution to Provident fund Û|e¥}«|q| B-2.3.2 New Pension Scheme }«|j¦z j¦}z|j¦ «ãØÛ àj¦ §Ød In terms of Bipartite Settlement and Joint Note dated j¦¥oÛ lu|«j¦ ÛoÎi¸}ÛrØd §Ø|t EHWZHHQ,%$DQG(PSOR\HHV2UJDQL]DWLRQV· on extending another option for pension, employees z| j¦j¦d|z| j¦j¦ej¦ joining the services of the Bank on or after 01.04.2010 }ÅØ àj¦j¦Û«}°j¦|j¦¥oÛ}ãØd zÛ DUHHOLJLEOHIRUWKH'HÀQHG&RQWULEXWRU\3HQVLRQ6FKHPH }«|q|j¦i}Îàqj¦ àj¦| §Ø|trØ which was introduced by the Bank in terms of the Joint z| j¦ j¦ d| j¦Û Î Î q| z| j¦ Note / Settlement dated 27.04.2010, similar to the one j¦|®Ûj¦j¦j¦¥o«j¦ij¦ÛlÛ governed by the provisions of New Pension Scheme introduced for the employees of Central Government Øy}y {Ø|e¥} |q|j¦}°{|« ZHI DQG DV PRGLÀHG IURP WLPH WR WLPH ÎÛ| ØÎØÛÎdØ¡ àj¦j¦Ûã|{q|Øy}«| Hence they are not eligible for becoming members of q|j¦z ||j¦i}|ÎÛ Îàz| j¦ Bank’s Provident Fund Scheme and Pension Scheme. In j¦ dy ej¦ }ÅØ¤ àj¦ d« « }° j¦| àj¦ j¦ respect of the employees of the Bank, who have joined j¦¥o«j¦ {«j¦} {«Ø|ØyÎ le¥ the services of the Bank on or after 01.04.2010, deduction towards New Pension Scheme at the rate of 10% of the ãÏj¦Ûj¦Ûz|e¥}«|q|j¦ij¦tØÛj¦ÛqØÛ basic pay and dearness allowance from the salary with a Îdej¦ØÎÛ àj¦¸d z|j¦qÎÎ matching contribution by the Bank is being made. Ûã|{ B-2.4 Provident Fund àj¦d¢Ü×¦ vÖzj¦id}|j¦¥o«qj¦ The Bank is statutorily required to maintain a provident dyf}¥«diÎàj¦|Ïã«j¦ij¦ãlj¦ IXQGDVDSDUWRILWVUHWLUHPHQWEHQHÀWVWRLWVHPSOR\HHV ¦}«ã|{j¦Ûzkk {j¦dj¦ØÎe|{ who joined Bank’s service on or before 31.03.2010. This j¦}° {|d Øj¦|¸j¦qØÎ}°Øj¦j¦¥oÛ¸ fund is administered by a trust managed by the Bank. Each employee contributes 10% of their basic salary fj¦Ø|i }ãÏ«j¦d z|j¦qØÎd and eligible allowances and the Bank contributes an àj¦d¢Ü×¦ vÖzfj¦ e|{«d z| equal amount to the fund. The investment of the fund j¦ØÎe|{j¦|ãØj¦¸|{¥Ø| is made according to investment pattern prescribed by }·Øj¦d|j¦qØÎ the Government of India Ûât¤tÛ|j¦zÛj¦ B-2.5 Leave Encashment j¦¥oÛd{¥Øoâj¦|ÏØj¦«fj¦ An employee is entitled to encash privilege leave kØ«qdq¥Ødj¦j¦d{j¦Øz|«j¦d{Û| standing to his/her credit subject to a maximum of 240 days on the date of superannuation/Voluntary |j¦zÛj¦j¦}Î Retirement/death. Øy} Øl} j¦ « j¦¥oÛ fj¦ kØ « q However, on resignation, an employee is entitled to dq¥Øât¤t«j¦Øj¦j¦d{j¦Øz|«j¦d{Û| get encashment to the tune of 50% of the privilege |j¦zÛj¦j¦}Î leave standing to the credit subject to a maximum of 120 days. ÛdØ§Ø|Ïã %$GGLWLRQDO5HWLUHPHQW%HQHÀW $5% dØ§Ø|Ïãq|«Î}°{|Îj¦ij¦d{j¦Û 7KHVFKHPHIRUDGGLWLRQDOUHWLUHPHQWEHQHÀWSURYLGHV |Ïoâj¦ |Ï Ø j¦ « dØ§Ø WKDWDQRIÀFHURQKLV5HWLUHPHQW9ROXQWDU\UHWLUHPHQW

171 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

|Ïãj¦} Îj¦Ø|}|j¦}Îl Ø¥ Death shall be eligible for payment of 6 months HPROXPHQWVDVDGGLWLRQDOUHWLUHPHQWEHQHÀWSURYLGHG f| j¦ ¥j¦Û}Ûj¦ÛÎdÎ ¢ d{j¦Û KH KDG FRPSOHWHG WZHQW\ÀYH \HDUV RI VHUYLFH LQ WKH |««z¥e¥lÛØÕj¦}j¦ØÎ Bank and satisfy the conditions mentioned in BOB fÛ}°j¦dv¥tÜ¦z|Ïoâj¦|Ï RIÀFHU·VVHUYLFHUHJXODWLRQV Øj¦«dØ§Ø|Ïã}|j¦}Îl Ø¥ In the same manner, award staff member on Retirement/ Voluntary Retirement/ Death shall be eligible for f| àj¦«Õj¦Ûi£}Ûj¦ÛÎ DGGLWLRQDOUHWLUHPHQWEHQHÀWSURYLGHGWKHVWDIIPHPEHU Øy} k¥ØlÛ§Ø}Ød|¥|Ïi had completed thirty-years of service in Bank. Øl}j¦«dØ§Ø|Ïãz|ÎÛ Î«loÎ However, in case of dismissal, discharge, termination, j¦j¦Ø|ÎÛ¥}j¦iÎ« compulsory retirement and resignation, additional UHWLUHPHQWEHQHÀWVKDOOQRWEHSD\DEOHLUUHVSHFWLYHRI qe¥ j¦ }¥ j¦ j¦Û l°Î j¦| j¦¥oÛ any number of years of service. dØ§Ø|ØØãq|ÎØ}Î The employees, who joined bank before 01st July, 1979 LVHOLJLEOHIRUWKHEHQHÀWRIDGGLWLRQDOUHWLUHPHQWVFKHPH Û}°j¦tÛj¦ B-2.7 Disclosures , }ãØãq| l°otÛi }«| , 'HÀQHG%HQHÀW3ODQV *UDWXLW\DQG3HQVLRQ i }ãØã {ÛzØ«j¦Ø¥| D &KDQJHLQSUHVHQWYDOXHRI'HÀQHG%HQHÀW2EOLJDWLRQ (` j¦vÖ / ` in Crore) Particulars }«| Pension l°otÛ Gratuity o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ As on As on As on As on March 31, March March 31, March 2019 31, 2018 2019 31, 2018 }ãØ ã {Û zØd« j¦ 2SHQLQJ 'HÀQHG %HQHÀW 13,357.19 12,811.00 1,678.33 1,349.92 }° ãj¦ Obligation qvÖ« qlØ Add- Interest Cost 985.86 951.37 116.43 94.24 qvÖ«}âÛlØ Add – Past Service Cost 0 0 0 388.30 qvÖ«qzlØ Add- Current Service Cost 1,094.76 1,168.24 104.15 105.45 qvÖ«}°zÏã /HVV%HQHÀWV3DLG 1,107.69 943.00 332.39 255.00 qvÖ«zØ«} Û j¦j¦Î|ã Add- Actuarial loss/gain(-) on -654.29 -630.44 29.97 -4.49 obligation ~ äÙä¡¡|Ü{Ùd¬j§ &ORVLQJ'HÀQHG%HQHÀW d¡Ù 2EOLJDWLRQ Ûq|lØdØ«j¦oØ }Ø¥| b) Change in Fair value of Plan Assets (` j¦vÖ / ` in Crore) Particulars }«| Pension l°otÛ Gratuity o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ As on As on As on As on March 31, March March 31, March 2019 31, 2018 2019 31, 2018 q|lØ dØ« j¦ foØ j¦ Opening Fair Value of plan 13,101.69 12,637.67 1,185.58 1,239.77 }° ãj¦ assets qvÖ«¡ q|lØ dØ« } ãØ Add- Expected Return on Plan 1,008.83 1,011.01 91.29 99.18 t|¥ Assets qvÖ«¡d z| Add- Contributions 338.40 271.40 201.52 110.06 mt«¡}°zÏã /HVV%HQHÀWV3DLG 1,107.69 943.00 332.39 255.00 qvÖ«¡ Û j¦j¦ã Î| Add- Actuarial gain/(-)loss 1,21.66 124.61 41.30 -8.43 q}lÙdÙ¬j§foÙj§ &ORVLQJ )DLU 9DOXH RI 3ODQ d¡Ù Assets

172 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

Û Ø|} | c) Amount recognized in the Balance Sheet (` j¦vÖ / ` in Crore) Particulars }«| Pension l°otÛ Gratuity o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ As on As on As on As on March 31, March March 31, March 2019 31, 2018 2019 31, 2018 ~ äÙä{Ùd¬j§d¡Ù L &ORVLQJ 'HÀQHG %HQHÀW 13,675.83 13,357.19 1,596.49 1,678.33 Obligation q|lØ dØ« j¦ foØ j¦ ii) Closing Fair Value of Plan 13,462.89 13,101.69 1,187.30 1,185.58 d Ø Assets d Ø iii) Difference 212.94 255.50 409.19 492.75 d|{¥Ø ¨¦ÛzØ LY 8QUHFRJQL]HG WUDQVLWLRQDO 0 0 0 291.23 liability Ù}~¬}{Ù Y /LDELOLW\5HFRJQL]HGLQWKH BS vÛ ãÎ|kØ«| d) Amount recognized in the Profit & Loss Account (` j¦vÖ / ` in Crore) Particulars }«| Pension l°otÛ Gratuity o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ As on As on As on As on March 31, March March 31, March 2019 31, 2018 2019 31, 2018 olØ i) Current Service Cost 1,094.76 1,168.24 104.15 105.45 }¥lØ ii) Past Service Cost 0 - 0 388.30 qlØ iii) Interest Cost 985.86 951.37 116.43 94.24 q|lØdØ} ãØt|¥ iv) Expected Return on Plan 1,008.83 1,011.01 91.29 99.18 Assets | Û j¦j¦Î|ã v) Net Actuarial Loss/gain(-) -775.95 -755.04 -11.23 3.94 ¥j¦z| ¨¦ÛzØj¦|{¥ vi) Transitional liability 0 0 0 291.23 UHFRJQL]HGLQWKH\HDU äÏ}kÙ¬}|¦ Ùko¦ ([SHQVHV5HFRJQL]HGLQ3 / e¥ |}t|¥¡ « e) Investment Pattern: (In %) (` j¦vÖ / ` in Crore) Particulars }«| Pension l°otÛ Gratuity o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ As on As on As on As on March 31, March March 31, March 2019 31, 2018 2019 31, 2018 j¦|®j¦j¦Û}°ØãØ Central Govt. Securities 3.11 3.23 20.24 20.67 qj¦j¦Û}°ØãØ State Government Securities 4.59 0.50 21.79 24.00 j¦}¥t }Ûi Corporate (PSU) 6.41 7.16 9.74 10.83 j¦}¥t |qÛ Corporate (Private) 5.43 2.76 - - Û Insurance 79.10 85.44 48.23 44.50 d| Others 1.36 0.91 - - ˆºÅ¥¸ Total }° {|j¦}f} {vtd| As per the data available with management.

173 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 iÜ¦ Û j¦j¦{ ãØdØj¦}«§Ø f) Principal Actuarial Assumptions [Expressed as Weighted Average] Particulars }«| Pension l°otÛ Gratuity o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ As on As on As on As on March March March March 31, 2019 31, 2018 31, 2019 31, 2018 vj¦f tz Discount rate 7.70% 7.71% 7.70% 7.71% Ø|·z Salary Escalation Rate 6.00% 6.00% 6.00% 6.00% ¾z Attrition Rate 2.00% 2.00% 2.00% 2.00% q|lØdØ«} ãØ Expected Rate of Return on 7.70% 8.00% 7.70% 8.00% }°Øãz plan Assets ¢t¥tÛz: de¥iii(2006-2008) Mortality Rate: IALM (2006-2008) qÛ } |ÎØ} o¥j¦}°j¦tÛj¦ g) Five year’s disclosure for Pension q|«d{j¦Û (` j¦vÖ / ` in Crore) Surplus/Deficit in the plan Ø|}«| Amount recognized in the o¥ o¥ o¥ o¥ o¥ Balance Sheet j¦ j¦ j¦ j¦ j¦ As on March As on March As on March As on March As on March 31, 2015 31, 2016 31, 2017 31, 2018 31, 2019 ¥j¦Û}Ø}zØ Liability at the end of 8,949.66 11,947.17 12,811.00 13,357.19 13,675.83 the year ¥j¦Û}Ø}q|lØ Fair value of Plan 8,707.91 9,031.10 12,637.67 13,101.69 13,462.89 Assets at the end of the dØ«j¦foØ year d Ø Difference -241.75 -2,916.07 -173.33 -255.50 -212.94 d|{¥Ø}¥lØ Unrecognised Past 0.00 0.00 0.00 0.00 0.00 Service Cost d|{¥Ø ¨¦Û Unrecognised 0.00 0.00 0.00 0.00 0.00 zØ Transition Liability Ù}~¬} $PRXQW5HFRJQL]HGLQ WKH%DODQFH6KHHW io l°otÛÎØ} o¥j¦}°j¦tÛj¦ h) Five year’s disclosure for Gratuity q|«d{j¦Û Surplus/Deficit in the plan (` j¦vÖ / ` in Crore) Ø|}«| $PRXQW UHFRJQL]HG LQ WKH %DODQFH o¥ o¥ o¥ o¥ o¥ 6KHHW j¦ j¦ j¦ j¦ j¦ As on As on As on As on As on March 31, March 31, March 31, March 31, March 31, 2015 2016 2017 2018 2019 ¥j¦Û}Ø}zØ /LDELOLW\DWWKHHQGRIWKH\HDU 1,491.36 1,346.55 1,349.83 1,678.33 1,596.49 ¥j¦Û}Ø}q|lØ )DLUYDOXHRI3ODQ$VVHWVDWWKHHQG 1,450.60 1,325.99 1,239.77 1,185.58 1,187.30 dØ«j¦foØ RIWKH\HDU d Ø 'LIIHUHQFH -40.76 -20.56 -110.06 -492.75 -409.19 d|{¥Ø}¥lØ 8QUHFRJQLVHG3DVW6HUYLFH 0.00 0.00 0.00 0.00 0.00 &RVW d|{¥Ø ¨¦ÛzØ 8QUHFRJQLVHG7UDQVLWLRQ/LDELOLW\ 0.00 0.00 0.00 291.23 0.00 Ù}~¬} $PRXQW5HFRJQL]HGLQWKH %DODQFH6KHHW

174 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

Û-2.7 ~±j§tÜj§ B-2.7 Disclosures ,, {Üm¦| j§¦o Ü ä d}|j§ {Ù ¢ ¡oÙ Ù~ Ù II. Long Term Employee Benefits (Unfunded d}~zÙ |j§ dj§ d dÙ ¨Ù}Ð Obligation): Accumulating Compensated Absences (Privilege Leave) & Additional ä id Ü Retirement Benefits (ARB) àj¦¸|§ØØ Û j¦z¤ Û j¦Ø j¦|j¦ The following table sets out the status of d| ||kØ Øj¦ oØ Ø}Ø d|}yØ Accumulating Compensated Absences (Privilege {j¦ dj¦ d id Û j¦Û yØ |{¥Ø Leave) & ARB as per the actuarial valuation by the j¦ØÛÎ¡ independent Actuary appointed by the Bank:- i zØj¦}° ãj¦dd|Øj¦j¦|i| a) Reconciliation of opening and closing balance of liability (` j¦vÖ / ` in Crore) Particulars ât¤tÛ|j¦zÛj¦ id Û Leave Encashment ARB As on As on As on As on March March March March 31, 2019 31, 2018 31, 2019 31, 2018 }ãØã {ÛzØj¦}° ãj¦ Opening Defined Benefit Obligation 878.52 906.96 331.05 346.81 qv« qlØ Add- Interest Cost 62.17 64.89 23.42 23.92 qv«olØ Add- Current Service Cost 48.02 47.57 9.85 10.56 mti }°zÏã Less- Benefits Paid 142.10 130.61 53.78 55.68 qvÖzØ«} Û j¦j¦ãÎ| Add- Actuarial loss/gain(-) on obligation 79.23 -10.29 -17.75 5.44 ~ äÙä{Ùj§d¡Ù Closing Defined Benefit Obligation 925.84 878.52 292.79 331.05

Û ãi Î|kØ«|{¥Ø b) Amount recognized in the Profit & Loss Account (` j¦vÖ / ` in Crore) Particulars ât¤tÛ|j¦zÛj¦ id Û Leave Encashment ARB As on As on As on As on March March March March 31, 2019 31, 2018 31, 2019 31, 2018 olØ i) Current Service Cost 48.02 47.57 9.85 10.56 lØlØ ii) Past Service Cost 0 0 qlØ iii) Interest Cost 62.17 64.89 23.42 23.92 | Û j¦j¦Î|ã iv) Net Actuarial Loss/gain(-) 79.23 -10.29 -17.75 5.44 äi¡Ï}kÙ¬}ko¦ Expenses Recognized in P&L 189.42 102.17 15.52 39.92 Û Ø|} « | }° ãj¦ d d|Ø zØ dØ« j¦ c) Reconciliation of opening and closing liability/(assets) j¦|i| recognized in the Balance Sheet (` j¦vÖ / ` in Crore) Particulars ât¤tÛ|j¦zÛj¦ id Û Leave Encashment ARB As on As on As on As on March March March March 31, 2019 31, 2018 31, 2019 31, 2018 L }ãØã {ÛzØj¦}° ãj¦ i) Opening Defined Benefit Obligation 878.52 906.96 331.05 346.81 LL f}§Ø|ko¥ ii) Expenses as above 189.42 102.17 15.52 39.92 LLL }°zÏã iii) Benefit paid 142.10 130.61 53.78 55.68 LY Ø|}«|j¦zØ iv) Net Liability Recognized in the Balance Sheet 925.84 878.52 292.79 331.05

175 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

G Üj¡§j§| >ä Ùd Ùj§~¬¨Ù@ d) Principal Actuarial Assumptions [Expressed as Weighted Average] (` j¦vÖ / ` in Crore) Particulars ât¤tÛ|j¦zÛj¦ id Û Leave Encashment ARB As on As on As on As on March March March March 31, 2019 31, 2018 31, 2019 31, 2018 vj¦f tz Discount rate 7.70% 7.71% 7.70% 7.71% Ø|·z Salary Escalation Rate 6.00% 6.00% 6.00% 6.00% ¿{ Attrition Rate 2.00% 2.00% 2.00% 2.00% ¢t¥tÛz¡de¥iii Mortality Rate: IALM (2006-2008) Û j¦j¦ j¦|«|ÎØã«Ø|·j¦d||« The estimates of future salary growth, factored in actuarial valuation, take account of inflation, «®Ü¦ÛØuØ}z||Ødql q«d}Ø¥ seniority, promotion and other relevant factors d lqd|}° lj¦j¦j¦«j¦{|«klÎe such as supply and demand in the employment ØÎj¦d|| ÎØzÛm¥j¦j¦ÎàdÛØlØd|ã market. Such estimates are very long term and are ØØj¦ã}d{Ø|ÎÛ Îàd|ãq|ÎãÛ not based on limited past experience / immediate future. Empirical evidence also suggests that in very ØØÎàj¦ ÎØ «lØfooØ|·z long term, consistent high salary growth rates are ã|ÎÛ Îf§Ød||«d|Ød«}k}Ûj¦« not possible. The said estimates and assumptions ¸ãj¦lÎ have been relied upon by the auditors. Ül¬t ~tÖl k}j§ %6HJPHQW5HSRUWLQJ $FFRXQWLQJ6WDQGDUG² l«t|{¥ 6HJPHQW,GHQWLÀFDWLRQ , }°yj¦ l«t ¡ àj¦ j¦ ||kØ }°k I. Primary (Business Segment): The following are the l«tÎà¡ primary segments of the Bank:- L tÐqÛ i. Treasury The Treasury Segment includes the entire tÐqÛl«t«l°|}t¥Ü¦dzÛ® investment portfolio and trading in foreign zØyvt zd««tÐv lÎtÐqÛ exchange contracts and derivative contracts. l«tj¦q«k}tÐv l}o|« The revenue of the treasury segment primarily j¦dãÎ|Øy|}t¥Ü¦} q consists of fees and gains or losses from trading operations and interest income on the investment dÎ portfolio. LL j¦¢}¥tÎ àj ¦l ii. Corporate / Wholesale Banking j¦}¥tÎ àj ¦ll«t«j¦vÖd The Corporate / Wholesale Banking segment fd{j¦j¦i§}^f{j¦Ø¥d«j¦Ûh comprises the lending activities of borrowers lØ{ Îà having exposure of Rs. 5.00 Crores and above. LLL t àj ¦l iii. Retail Banking t àj ¦ll«t«j¦vÖj¦j¦i§}^ The Retail Banking Segment comprises of borrower accounts having exposure of less than f{j¦Ø¥kØÎà Rs. 5.00 Crores. LY d| àj ¦l}o| iv. Other Banking Operations f}§Ø L LLL j¦d Øl¥ØlÛ¥j¦Ø|ÎÛ j¦ilil«t«j¦ 6HJPHQWV QRW FODVVLÀHG XQGHU L WR LLL DERYH DUH e}°yj¦l«tj¦d Øl¥ØlÛ¥j¦Øj¦lÎ FODVVLÀHGXQGHUWKLVSULPDU\VHJPHQW ,, l ä lj§l¬t II) Secondary (Geographical Segment) L m}o|ãØ«j¦¥Øki j¦¥ L 'RPHVWLF 2SHUDWLRQV %UDQFKHV2IÀFHV KDYLQJ LL zÛ}o|ãØj¦ Î}o|j¦|Û operations in India ki j¦¥dãØ«}o|j¦|Û LL )RUHLJQ 2SHUDWLRQV %UDQFKHV2IÀFHV KDYLQJ operations outside India and offshore banking d¢Ü¦ àj ¦lej¦e units having operations in India

176 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

,,, ql«t ÎÛl°Îj¦«}°}Øqj¦z¥ØÎ III. Segment revenue represents revenue from external customers. ,9ddØi zØd«j¦d t| IV. Allocation of Income, Expenses, Assets and Liabilities q d j¦ Î àj ¦l }o|« }°}Ø Øj¦ The interest income is allocated on the basis of actual qj¦d{}d tØj¦qØÎ}°}Øj¦ q« interest received from wholesale banking operations. Î àj ¦lj¦ qj¦mtj¦ft àj ¦l}o| The total interest received less interest of wholesale «qqØÎÛ{|ÎÛ j¦iliko¥j¦Î banking is taken to retail banking operations. Expenses àj ¦lt àj ¦ll«t¸dq¥Ø qdj¦d{ not directly attributable are allocated on the basis Interest income earned by the wholesale banking / retail }d tØj¦qØÎtÐqÛ}o|«j¦ko¥tÐqÛ banking segment. Expenses of treasury operations are }o|«f} {j¦d|Îà as per the details available from treasury operations. àj¦j¦Ûj¦â|dØdzØi Îàq|Î«j¦ÛãÛl«t The Bank has certain common assets and liabilities, «|ÎÛ j¦qj¦Øf|Î«d| tØ|lÎ which cannot be attributed to any segment, and the same are treated as unallocated l«t {Ûq|j¦Û¡ Segment Information ãli¡j¦ l«t Part A – Business Segments (` j¦vÖ / ` in Crores) j¦ l t Business segment tÐqÛ j¦}¥tÎ àj ¦l t àj ¦l d| àj ¦l}o| j¦ Treasury Corporate/ Wholesale Retail Banking Other Banking Total Banking Operations Particulars o¥ }â¥ o¥ }â¥ o¥ }â¥ o¥ }â¥ o¥ }â¥ Current Previous Current Previous Current Previous Current Previous Current Previous Year Year Year Year Year Year Year Year Year Year q Revenue 17,001.92 16,777.99 20,697.77 18,706.92 18,161.90 14,360.20 203.50 460.58 56,065.10 50,305.69 } Result 2,491.35 2,641.56 -5,576.69 -4,490.85 6,836.28 1,440.45 146.35 335.94 3,897.30 -72.90 d| tØko¥ Unallocated 3,199.15 2,717.84 Expense }o|lØã Operating 698.15 -2,790.74 3URÀW dj¦ Income taxes 264.63 -358.93 tãÎ| ([WUD2UGLQDU\ 3URÀW - -- Loss |ã 1HW3URÀW 433.52 -2,431.81 d|o| Other Information --- l«tdØ Segment Assets 2,23,894.46 2,68,099.12 3,54,966.45 3,11,342.07 1,89,984.09 1,30,111.77 0 0 7,68,845.00 7,09,552.96 d| tØdØ Unallocated Assets 12,142.40 10,446.81 j¦dØ Total Assets 7,80,987.40 7,19,999.77 l«tzØi Segment Liabilities 2,09,278.56 2,51,940.64 3,31,794.13 2,92,577.32 1,77,581.87 1,22,269.86 0 0.00 7,18,654.57 6,66,787.82 d| tØzØi Unallocated Liabilities 11,349.74 9817.18 j×¦zØi Total Liabilities 7,30,004.31 6,76,605.00 |qØ} qÛ Capital employed 14,615.90 16,158.48 23,172.32 18,764.75 12,402.22 7,841.91 0.00 0.00 50,190.44 42,765.14 d| tØ Unallocated 792.66 629.63 j¦} qÛ Total Capital 50,983.10 43,394.77 ãl~Û¡ãlj¦k v¡ Part B – Geographic Segments (` j¦vÖ / ` in Crores) l«t Segments m d Ø¥tÐÛ j¦ Domestic International Total Particulars o¥ }â¥ o¥ }â¥ o¥ }â¥ Current Year Previous Year Current Year Previous Year Current Year Previous Year q Revenue 49,803.80 45,342.56 6261.30 4,963.13 56,065.10 50,305.69 dØ Assets 6,69,681.72 5,53,287.16 1,11,305.69 1,66,712.61 7,80,987.40 7,19,999.77

177 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Û {Ø}tÛ¥}°j¦tÛj¦(k j¦||j¦-18) B-4 Related Party Disclosures (Accounting Standard -18) {Ø}t¥«j¦|i àj¦j¦yf|j¦ {: Names of the Related Parties and their relationship with the Bank: {Ø}t¥«j¦|i f|j¦ { I. Name of Related Parties & their relationship i d| l a) Subsidiaries L m àj¦ ld| lÛ i) Domestic Banking Subsidiary ||ÛØ àj¦tv 1. The Nainital Bank Limited LL zÛ àj¦ ld| l ii) Foreign Banking Subsidiaries àj¦d¢Ü×¦ vÖz j¦| tv 1. Bank of Baroda (Kenya) Limited àj¦d¢Ü×¦ vÖz l v tv 2. Bank of Baroda (Uganda) Limited àj¦d¢Ü×¦ vÖz l| de¥i|Û 3. Bank of Baroda (Guyana) Inc. àj¦d¢Ü×¦ vÖz j¦ tv 4. Bank of Baroda (UK) Limited. àj¦d¢Ü×¦ vÖz Ø q| tv %DQNRI%DURGD 7DQ]DQLD /LPLWHG àj¦d¢Ü×¦ vÖz |zzt l 6. Bank of Baroda (Trinidad & Tobago) Ltd. àj¦d¢Ü×¦ vÖz m| 7. Bank of Baroda (Ghana) Ltd. àj¦d¢Ü×¦ vÖz |qÛàv 8. Bank of Baroda (New Zealand) Ltd. àj¦d¢Ü×¦ vÖz ~Ø| 9. Bank of Baroda (Botswana) Limited LLL ml àj¦ ld| l iii) Domestic Non- Banking Subsidiaries ¢ j¦}tj¥¦ttv 1. BOB Capital Markets Limited ¢ Ü¦e| i|tv }¥ ¢ j¦v¥¤ ×× 2. BOB Financial Solutions Limited vÖzl v¥¥tv (formerly known as BOB Cards Ltd) vÖz|t§|¢qÛtv 3. Baroda Global Shared Services Ltd vÖzit|q«te vtv 4. Baroda Sun Technologies Ltd. vÖztÐtÛe v}°ettv 5. Baroda Asset Management India Limited iv) zÛl àj¦ ld| lÛ 6. Baroda Trustee India Private Limited ¢ j¦ ××tv iv) Foreign Non- Banking Subsidiary v) zÛl àj¦ lt}vf|d| lÛ 1. BOB (UK) Ltd. vÖzj¦}tj¥¦t l v tv v) Foreign Non- Banking Step-down Subsidiary àj¦d¢Ü×¦ vÖzl vtvj¦Ûd| lÛ 1. Baroda Capital Markets (Uganda) Limited. ~Û ÎlÛej¦e (Subsidiary of Bank of Baroda Uganda Ltd.) L Ûl°Û àj¦ b) Associates vÖzfÏ}°zl°Û àj¦ i) Regional Rural Banks vÖzqy|Ûl°Û àj¦ 1. Baroda Uttar Pradesh Gramin Bank vÖzlqØl°Û àj¦ 2. Baroda Rajasthan Kshetriya Gramin Bank ~Û d| 3. Baroda Gujarat Gramin Bank e vq àj¦tv ii) Others Û §Øfµ 1. Indo Zambia Bank Limited e vÜ¦t¥eÜ¦e «j ¦ c) Joint Ventures e ve t|| àj¦ ÛiovÛ 1. India First Life Insurance Company Limited e ve Ý¦v t 2. India International Bank (Malaysia) Bhd. 3. India Infra debt Limited vÛ ÎØ}¥}° {|j¦¥j¦ d) Key Management Personnel ¨¦ | }z| }j¦Remuneration NAME DESIGNATION For the year For the year S. ended March ended March NO 31, 2019 31, 2018 1 ÞÛ}Ûiqj¦ }° {|zj¦i kj¦¥}j¦d{j¦Û 33,45,175 31,51,937 Shri P. S. Jayakumar MD & CEO

178 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

2 Û j¦ÎØ j¦¥}j¦|zj 55,24,659 30,20,936 Shri Mayank Mehta Executive Director (up to 30.09.2018) 3. ÞÛdj¦j¦ll¥ j¦¥}j¦|zj 46,38,773 28,24,124 Shri Ashok Kumar Garg Executive Director (up to 30.06.2018) 4. ÞÛØÛ}}|l}Ø j¦¥}j¦|zj¦ 29,77,837 27,81,170 Smt. Papia Sengupta Executive Director 5. ÞÛ Øq| j¦¥}j¦|zj 15,15,397 - Shri Shanti Lal Jain Executive Director (up to 20.09.2018) 6. ÞÛ¨¦zØ ÎkÛoÛ j¦¥}j¦|zj 14,23,096 - Shri Vikramaditya Singh Khichi Executive Director (w.e.f. 01.10.2018) |ØØãÎØ *LQFOXGHVUHWLUHPHQWEHQH¿WV k« } t}}« j¦ d Ûde¥ j¦ }} j¦ d| {Ø }tÛ¥ In terms of RBI circular on notes to accounts, key }°j¦tÛj¦j¦iÎØ}¥}° {|j¦¥j¦ v¥j¦}¥j¦j¦|zj¦ management personnel are whole time directors of ÎØÎà Board for Related Party Disclosure. k j¦||j¦ ii j¦}j¦d|iÛ {Ø}t¥«j¦ No disclosure is required in respect of related parties, which are “State-controlled Enterprises” as per paragraph 9 of Accounting {«j¦e¥}°j¦tÛj¦j¦|j¦Ûdj¦Ø|ÎÛ Îqq| Ø Standard (AS) 18. Further, in terms of paragraph 5 of AS 18, fµÎàyÎÛk j¦||j¦j¦}j¦d| àj¦l°Îj¦ transactions in the nature of Banker-Customer relationship {j¦Û}°j¦Øj¦|z|«j¦}°j¦tÛj¦|ÎÛ j¦lÎq«}°k have not been disclosed including those with Key Management }° {|j¦¥j¦d}°k}° {|j¦¥j¦j¦ {ÛãÛÎà Personnel and relatives of Key Management Personnel. % }o|Ûq k j¦||j¦ B-5 Operating Lease (Accounting Standard -19) }o|Ûq}ili}|||Îà¡ Premises taken on operating lease are given below: 2SHUDWLQJ OHDVHV SULPDULO\ FRPSULVH RIÀFH SUHPLVHV }o|Ûq««k}j¦¥}dj¦¥oÛ and staff residences, which are renewable at the option |Îàq àj¦j¦j¦}}|Ûj¦ÛÎà of the Bank. L ´|j¦q|l}o|Ûq}ili}«} i) The following table sets forth, for the period indicated, ãj¦j¦j¦ãlØ|j¦«j¦|{¥Øj¦Ûle¥d{ the details of future rental payments on Premises taken j¦i||kØØj¦«z¥lÎ¡ on Non-Cancellable operating leases: (`j¦vÖ« / ` in Crores) {Ù Obligations As on March 31, 2019 As on March 31, 2018 ij¦¥j¦}|Û|ÎÛ Not later than one year 61.33 35.96 ij¦¥qz} Ø} o¥ Later than one year and not 132.92 122.56 j¦}|Û|ÎÛ ODWHUWKDQ¿YH\HDUV } o¥qz}|Û /DWHUWKDQ¿YH\HDUV 129.31 165.04 LL }o|Ûq«j¦iãi Î|kØ«|Ûq LL $PRXQWRI OHDVH SD\PHQWV UHFRJQL]HG LQ WKH3URÀW ãlØ|j¦Ûj¦vÖ o¥¡ Loss Account for operating leases is Rs. 516.86 Crores (March 31, 2018: Rs. 498.62 Crores) j¦vÖ Î The Bank does not have any provisions relating to àj¦j¦}dj¦j¦j¦i {Øj¦e¥}°{||ÎÛ Î contingent rent. |Ûj¦kÛzj¦}d·k vj¦ÛØÕ|} The terms of renewal/purchase options and escalation |rØ««lÎàrØ««j¦e¥d|oØ}°Ø { clauses are those normally prevalent in similar dØj¦ØÕ|ÎÛ Îà agreements. There are no undue restrictions or onerous clauses in the agreements. % }°Ød k j¦||j¦ B-6 Earning per Share (Accounting Standard -20) àj¦k j¦||j¦“}°Ød”j¦d|}°Ø The Bank reports basic and diluted earnings per equity e§tÛ « |zÛ vtv d }t¥ j¦Ø Î ¥ j¦ share in accordance with Accounting Standard 20 - z| j¦e§tÛ«j¦ÛãØdØ k¸j¦ “Earnings per Share”. “Basic earnings” per share is j¦ z·ãj¦ãqØj¦j¦}°Ø“d”j¦Û FRPSXWHGE\GLYLGLQJQHWSURÀWDIWHUWD[E\WKHZHLJKWHG l|j¦Ûle¥Î average number of equity shares outstanding during the year.

179 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Particulars For the year For the year ended March ended March 31, 2019 31, 2018 ¥j¦d ã««j¦Û k Number of share at the beginning of the year 2,64,55,16,132 2,30,41,59,598 ¥j¦z|qÛ Shares Issued during the Year 0 34,13,56,534 ¥j¦Û}Ø}«j¦Û k Number of share at the end of year 2,64,55,16,132 2,64,55,16,132 }°Ødj¦Ûl|j¦i}°l Weighted Average Share used in computing 2,64,55,16,132 2,30,88,35,715 j¦iliãØdØ the basic earnings per shares ¥j¦Û}Ø}e§tÛ«j¦Û ãØ 3RWHQWLDOQRRIHTXLW\VKDUHVDVDWHQGRI 42,85,59,286 - k year* }°Ø vtv d j¦Û l| j¦| j¦ Number of share used in computing the 3,07,40,75,418 - i}°lj¦ili«j¦Û k diluted earnings per shares j¦j¦ z|ã j¦vÖ« 1HWSUR¿WDIWHUWD[ 5VLQ&URUHV 433.52 (2431.81) }°Ød « Basic earnings per share (In Rs.) 1.64 (10.53) }°Øvtvd « Diluted earning per share (In Rs.) 1.41 (10.53) }°Ød j ¦Ø « Nominal value per share (In Rs.) 2.00 2.00 i«j¦Ûd{j¦Ø kj¦z¥ØÎqi}Ûj¦| * Represents maximum number of shares that can be issued }°}Øj¦}ãØj¦j¦qÛj¦iqj¦ØÎà d|oÛ to the Government of India against Share application money received (Refer note no A-1 Capital under Schedule 18). These j¦ØÎØi} qÛj¦ zã¥« ¥j¦itÛ,} qÛj¦Ûl| shares have been considered as a Potential Equity in terms j¦f´}°}Øi}Ûj¦|}oj¦|j¦iãØÛ of Accounting Standard 20 “Earning per Share” based on the q¥ àj¦j¦} vÛ ÛdÛd Û}Û| letter bearing No DBR.CO.BP No. 9771/21.01.002/2018-19 z| j¦j¦d{}k|j¦}°Ødj¦ dated 17.05.2019 from Reserve Bank of India to consider the d|e|«j¦ ãØe§tÛ|lÎ Application Money received for the purpose of calculation of Tier I Capital for the year. Ûd}j¦«j¦k j¦| k j¦||j¦ B-7 Accounting for Taxes on Income (Accounting Standard -22) i Ø¥|j¦¡ a) Current Tax: ¥j¦z|Ø¥|j¦j¦j¦ àj¦|ãdÎ|kØ 'XULQJWKH\HDUWKH%DQNKDVGHELWHGWR3URÀW /RVV «j¦vÖ o¥¡j¦vÖ | Account Rs. 1,282.61 Crores (March 31, 2018: Rs. j¦iÎàãØ«Ø¥|j¦j¦Ûl|z««ãlØ|j¦ili 1,664.24 Crores) on account of current tax. The Current Tax in India has been calculated in accordance with j¦«j¦ifoØÎØ|j¦ zdj¦d{|j¦ the provisions of Income Tax Act 1961 after taking }°{|«j¦d|j¦Ûle¥Î appropriate relief for taxes paid in foreign jurisdictions. Û dylØj¦¡ b) Deferred Tax: ¥j¦z|dylØj¦j¦j¦ãdÎ|kØ« During the year, Rs.1,017.98 has been credited to o¥¡j¦vÖ qj¦l 3URÀWDQG/RVV$FFRXQW 0DUFK5V Crores) on account of deferred tax. The Bank has a net Î àj¦j¦·vÛtÛij¦vÖ o¥¡· DTA of 7,408.36 Crores (March 31, 2018: net DTA of Rs vÛtÛij¦vÖ Îq«d|dØ«j¦d Øl¥Ø 6,333.06 Crores), which comprises of DTL of Rs. 2.80 j¦vÖ o¥¡j¦vÖ} Crores (March 31, 2018: Rs 2,989.77 Crores) included j¦vÛtÛiÎvÛtÛidvÛtÛij¦}°kmtj¦|Ûo under ‘Other Assets’. The major components of DTA ziliÎà¡ and DTL is given below: (`j¦vÖ« / ` in Crores) Particulars As on As on March March 31, 2019 31, 2018 im A. Domestic dzlÙj§ dÙ¡ vÜtÜi Deferred Tax Assets (DTA) dodØ«}dj¦d{|j¦ Difference between book depreciation and Depreciation under 127.58 -- ØÎØ ÎÛ¾Øy¾«d Ø Income Tax Act on fixed assets

180 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

zÛ®|}°Ø |j¦ÛlÛ Foreign Currency Translation Reserve(Unrealized) 138.15 -- dj¦|j¦zÛj¦j¦i}°{| Provision for leave encashment 323.53 307.03 zl{h Øydl° j¦i}°{| Provision for doubtful debts and advances 9,081.76 8,097.03 dj¦d{| de¥tÛ j¦Û{ i Amount disallowed U/S 40 (a) (ia) of the IT Act -- 3.77 de¥i j¦d|Øl¥Øld|Ø zÛ®|}°Ø |j¦ÛlÛ Foreign Currency Translation Reserve (realized) -- 69.08 j§ vÜtÜi Total DTA 9,671.02 8,476.91 dzlÙj§ {Ùi¡ vÜtÜi Deferred Tax Liabilities (DTL) dj¦d{|j¦ØÎØyÛdØ«} Difference between book depreciation and Depreciation under -- 55.57 ÎÛ¾i ¾j¦ Ûoj¦d Ø Income Tax Act on fixed assets dj¦ d{| j¦Û { Deduction under section 36 (1) (viii) of the Income-Tax Act, 2,000.82 1,937.20 YLLL j¦ØÎØj¦tØÛ 1961 iotÛi}°ØãØ«}¾ Depreciation on HTM Securities -- 97.07 zÛ®|}°Ø |j¦ÛlÛ Foreign Currency Translation Reserve(Unrealized) -- 55.35 f}oØ q} Øz|ÎÛ Interest Accrued but not due 1,128.72 937.21 j§ vÜtÜi Total DTL 3,129.54 3,082.40 }dzlÙj§ dÙ¡ i Net Deferred Tax Assets (A) 6,541.48 5,394.51 ~ÛÇj¦ mi zÛ}o| B. GLOBAL (Domestic & Overseas operations) dzlÙj§ dÙ¡ vÜtÜi Deferred Tax Assets (DTA) dj¦d{|j¦ØÎØyÛdØ«} Difference between book depreciation and Depreciation under 127.35 -- ÎÛ¾i ¾j¦ Ûoj¦d Ø Income Tax Act on fixed assets dj¦|j¦zÛj¦j¦i}°{| Provision for leave encashment 330.99 307.03 zl{h Øydl° j¦i}°{| Provision for doubtful debts and advances 9,940.98 9,035.58 zÛ®|}°Ø Foreign Currency Translation Reserve 138.15 69.08 d} Others 0.43 0.00 j§ vÜtÜi Total DTA 10,537.90 9,415.46 dzlÙj§ {Ùi¡ vÜtÜi Deferred Tax Liabilities (DTL) dj¦d{|j¦ØÎØyÛdØ«} Difference between book depreciation and Depreciation under -- 55.57 ÎÛ¾i ¾j¦ Ûoj¦d Ø Income Tax Act on fixed assets dj¦ d{| j¦Û { Deduction under section 36 (1) (viii) of the Income-Tax Act, 2,000.82 1,937.20 YLLL j¦ØÎØj¦tØÛ 1961 iotÛi}°ØãØ«}¾ Depreciation on HTM Securities -- 97.07 zÛ®|}°Ø |j¦ÛlÛ Foreign Currency Translation Reserve (Unrealized) -- 55.35 f}oØ q} Øz|ÎÛ Interest Accrued but not due 1,128.72 937.21 dj¦d{| de¥tÛ j¦Û{ i Amount disallowed U/S 40 (a) (ia) of the IT Act -- 3.77 de¥i j¦d|Øl¥Øld|Ø j§ vÜtÜi Total DTL 3,129.54 3,082.40 }dzlÙj§ {Ùi¡ Ü Net Deferred Tax Assets (B) 7,408.36 6,333.06 % }o| zj¦| k j¦||j¦ B-8 Discontinuing operations (Accounting Standard- 24) d}|}o|««ij¦ÛãÛ}o|j¦ zj¦|j¦Û The Bank has no plan to discontinuing operations of any of its operations, which resulted in shedding of liability and àj¦j¦Ûj¦e¥q||ÎÛ Îqj¦}}zØj¦ÎØÛ UHDOL]DWLRQRIWKHDVVHWVDQGQRGHFLVLRQKDVEHHQÀQDOL]HG ÎddØ«j¦ÛÛÎØÛÎdij¦e¥|¥|ÎÛ to discontinue an operation in its entirety, which will have the lÎqj¦¸fj¦}o|j¦}ÛØÎ zj¦qi above effect. ~Û §Øfµ ÎØ j¦}°j¦tÛj¦ k|j¦ B-9 Disclosure of Interest in Joint Ventures (Accounting Standard -27) iij¦Ûdj¦Øj¦d|¦} §Ø¦}| Ø As required by AS 27, the aggregate amount of the assets, ej¦e«« àj¦j¦ÎØ« {ØdØ«zØd«d liabilities, income, expenses, contingent liabilities and dj¦j¦ zØd« d }°Ø ·Ød« j¦Û j¦ commitments related to the Bank’s interests in jointly |||Î¡ controlled entities are disclosed as under:

181 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

| zqÎ µ|Î |j¦¦} Øj¦% of owner ship Name Country of Nature of Investments o¥ }â¥ Incorporation Current Year Previous Year e vÜ¦t¥eÜ¦e j¦}|Û ãØIndia §Øfµ 44%44% India First Life Insurance Company Ltd Joint Venture e v e t|| àj¦ ÛiovÛ Malaysia §Øfµ 40%40% India International Bank (Malaysia) Bhd Joint Venture e ve Ý¦v t ãØIndia §Øfµ 40.99% 36.86% India Infradebt Ltd. Joint Venture (` j¦vÖ / ` in Crore) Particulars As on March As on March 31, 2019 31, 2018 zØi Liabilities } qÛi }°Ø|{ &DSLWDO UHVHUYH 1,208.87 819.84 qi Deposits 92.83 76.15 h Borrowings 3,471.58 2,663.4 d|zØi i }°{| 2WKHU/LDELOLWLHV SURYLVLRQV 6,678.66 5,550.71 j¦ Total 11,451.94 9,110.10 dØ Asset |j¦zÛØyd Ûde¥j¦}q Cash and Balances with RBI 1.17 0.77 àj¦j¦}qØy lq|Øyd} Balances with banks and Money at call and o|}z short notice 436.59 420.57 | Investments 8,382.78 6,963.76 hi dl° /RDQV $GYDQFHV 2,262.43 1,411.29 yÛdØ Fixed Assets 14.17 10.17 d|dØ Other Assets 354.80 303.54 j¦ Total 11,451.94 9,110.10 d|dj¦j¦zØi Contingent Liabilities 35.44 87.89 d Income dq¥Ød Income Earned 898.45 653.65 d|d Other Income 1,416.86 1,011.16 j¦ Total 2,315.31 1,664.81 Expenditure q Interest expended 274.51 184.88 }o|lØ Operating expenses 863.37 676.78 }°{|i dj¦j¦Øi 3URYLVLRQV FRQWLQJHQFLHV 1,055.73 730.19 j¦ Total 2,193.61 1,591.85 ã 3UR¿W 121.70 72.96

%dØ«j¦d|q¥j¦ || k j¦||j¦ B-10 Impairment of Assets (Accounting Standard-28) àj¦j¦}° {|j¦o¥j¦z|dØ«j¦d|q¥j¦ In the opinion of the Bank’s management, there is no indication of impairment to the assets during the year to which ||j¦ {«j¦e¥ j¦Ø|ÎÛ Îàq|}k|j¦ Accounting Standard 28 – “Impairment of Assets” applies. CCdØ«j¦e }«tlÎØÎ ~Û}°{|dj¦j¦zØi Øydj¦j¦dØ (ii) B-11 Provisions, Contingent Liabilities and Contingent Assets (Accounting Standard-29) ~Û àj¦j¦Û}¢Ûj¦d|ih«ÎØq|Î zj¦¦}« B-11.1 As per the policy of the Bank, provision for the

182 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

Ûj¦|ÎÛ j¦Îf|j¦i}°{|j¦lÎ claims not been acknowledged as debt, has been provided for. z j¦i}°{|«j¦ o| Movement of provisions for Claims (` j¦vÖ / ` in Crore)

Particulars For the year For the year |j§dj§j§Ùi¡¡ Legal Cases/Contingencies ended March 31, ended March 31, 2019 2018

}° ãj¦ Opening balance 41.85 40.19 ¥j¦z|}°{|q| Provided / Adjustment during the year -8.13 1.66 o¥j¦ Balance as on 31st March 2019 33.72 41.85

Timing of outflow/ uncertainties dftªd|ÅØØd«j¦ |}t|¨¦teq|j¦dftªOutflow on settlement/crystallization i j¦«ÎØ}°{|d}ÛÛ}°{j¦«j¦|¥«j¦{| a) Provision for Taxes has been arrived at after due «kØÎid{§Øj¦}¥j¦lÎCCd| consideration of decisions of the appellate authorities and ” advice of counsels. Tax paid in advance/tax deducted at dØ Û¥j¦ j¦ d Øl¥Ø z¥Û dl° j¦ dzlÛ source appearing under “other Assets” amounting to Rs ` ÉØ}j¦j¦Ûj¦tØÛ j¦vÖ }â¥ 5,881.92 Crores (March 31, 2018: Rs 2,007.25 Crores) `j¦vÖ Îq«z}zj¦ l«j¦ { is inclusive of Rs 2,615.40 Crores (March 31, 2018: Rs « àj¦¸ãlØ|j¦ÛlÛãl¸qØ 1,704.80 Crores) which represents amount adjusted by `j¦vÖ o¥¥`j¦vÖ the department / paid by the bank in respect of disputed Îdj¦j¦Ûz}z l«j¦i|j¦|¥«d tax demands for various assessment years. No provision j¦||Û}¥d{j¦Ûj¦Ûj¦{|«kØÎie is considered necessary in respect of the said demands, z j¦ i j¦e¥ }°{| |ÎÛ j¦ l Î j¦ |{¥ DVLQWKHEDQN¶VYLHZGXO\VXSSRUWHGE\FRXQVHOVRSLQLRQ and/or judicial pronouncements, additions / disallowances d{j¦Û¸j¦l}Ø¥||ÎÛ |k|j¦ PDGHE\WKHDVVHVVLQJRI¿FHUDUHQRWVXVWDLQDEOH |ÎÛ Î b) Such liabilities as mentioned at Serial No (I) to (VI) of Û Ø|}j¦vj¦Û¨¦ , 9, «f´ØiÛzØi Schedule 12 of Balance Sheet are dependent upon the ¨¦¡ lÛlÛ zzØØÕ ·}t¥«j¦Û l outcome of court judgment / arbitration awards / out of dzØj¦|¥} oÜ¦dzØj¦ Á|Ød}Û court settlement/disposal of appeals, the amount being j¦|}t}|ã¥j¦ØÛÎài««j¦e¥}°Ø}Ø¥d}Ø called up, terms of contractual obligations, development and raising of demand by concerned parties respectively. |ÎÛ Î No reimbursement is expected in such cases. Û Ü¦Û ãØ j¦ ||Û ¥oo | | d}| c) In February 2019, the Honorable Supreme Court of India in |¥ }tj¦j¦j¦¥oÛã|{d{}°{| LWVMXGJPHQWFODUL¿HGWKDWFHUWDLQVSHFLDODOORZDQFHVVKRXOG d{| }ÛiÜ¦d{| j¦ØÎØãØØ }o EH FRQVLGHUHG WR PHDVXUH REOLJDWLRQV XQGHU (PSOR\HHV¶ j¦q|oÎi j¦j¦{Ø}o|zÛqØÛÎj¦ Provident Funds and Miscellaneous Provisions Act, 1952 (the PF Act). The Bank has been legally advised that the ¥oo|z¤ j¦}l|ÎÛ ÎØ§ j¦ j¦|{ said ruling by Supreme Court is not applicable to the Bank j¦ |kØÎ since the bank is maintaining its own fund. vÛ ÏÛ dj¦j¦dØ j¦|Ø|ÎÛ zÛqØÛÎ d) &RQWLQJHQW$VVHWVDUHQRWUHFRJQL]HGLQWKH¿QDQFLDO statements. Û dØ§Ø}°j¦tÛj¦ C. Additional Disclosures Û Î«j¦|i {| C-1 Balancing of Books and Reconciliation d Øj¦¥q|j¦d Øl¥Øk«j¦ã||ÛÕ «|i qj¦Û j¦}°t«j¦}° ãj¦|j¦ Initial matching of debit and credit outstanding entries j¦¥{|j¦}°q|ÎØØj¦j¦l LQYDULRXVKHDGVRIDFFRXQWVLQFOXGHGLQ,QWHURI¿FH Adjustments has been completed up to 31.03.2019, Îe«foØ{|j¦j¦¥}°lØ}Î the reconciliation of which is in progress. Û} qÛlØ}°Ø|{ C-2 Capital Reserves } qÛlØ}°Ø|{«do }Ï«j¦}|¥ j¦|j¦ Capital Reserve includes appreciation arising

183 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ü¦¦}Î|Û·Øym{fµl«j¦ on revaluation of immovable properties, amount subscribed by Government of India under the World i|¥Øj¦}q|d«ÎØÇ àj¦j¦Ûq|d« %DQN¶V 6FKHPH IRU ([SRUW 'HYHORSPHQW 3URMHFWV j¦d Øl¥ØãØj¦j¦Ûd z|Î for small / medium scale industries and others. & | C-3 Investments ÛãØÛ^¥ àj¦j¦z|z¥«j¦d|¥j¦z| C-3.1 In terms of RBI Guidelines, during the year, the àj¦|CC ¨¦Ûj¦if} { iiÜ¦i Û«|j¦ij¦ bank has transferred a portion of Investment from ãlj¦CC}}§ØØj¦{Ø iotÛi Û«d ØØ HTM category to AFS category. The resultant j¦zÎ`3.58j¦vÖ o¥` 5.27j¦vÖ depreciation of Rs. 3.58 Crores (March31, 2018: 5V&URUHV KDVEHHQFKDUJHGWRWKH3UR¿W j¦}Û¾j¦ãi Î|k«}°ãØj¦ Loss Account. zlÎ RBI circular DBR.No.BP.BC.113/21.04.048/2017-18 ãØÛ^¥ àj¦j¦}}vÛ Ûd| Û}Û ÛÛ dated June 15, 2018 had granted banks an option to z| j¦q|¸ àj¦« spread provisioning for mark to market (MTM) losses j¦iiÜ¦idioiÜ¦tÛ««j¦ili|«} on investments held in AFS and HFT categories j¥¦tj¥¦t itÛi |j¦|«j¦iq| HTXDOO\ XS WR IRXU TXDUWHUV FRPPHQFLQJ ZLWK WKH j¦ }Ø ØÎÛ o ØÎ« Øj¦ }°{| TXDUWHUHQGHG-XQHWKH%DQNKDVDYDLOHG j¦|j¦j¦}zlÎ àj¦|eâtj¦ã the relaxation permitted. An amount of Rs.248.48 fuÎØ j¦}ØâÎÛ« crore, was carried forward as at the half year ended j¦vÖj¦Ûj¦dl cÖlÎz d September 30, 2018. During the December 2018 o¥j¦ÛØÎÛj¦z| àj¦j¦l°}t¥Ü¦ DQG0DUFKTXDUWHUVWKHRYHUDOOSRUWIROLRRIWKH bank has a positive MTM as at December 31, 2018 «z do¥j¦j¦Øj¦ and March 31, 2019, hence no further provision is itÛiÎeij¦Ûd}°{|j¦Ûdj¦Ø UHTXLUHG $FFRUGLQJO\ WKH DERYH FLUFXODU ZLOO QRW |ÎÛ ÎØz|f}§Ø}}ØÎÛj¦i àj¦} DSSO\WRWKHEDQNIRUWKHTXDUWHU l|ÎÛ Îl ÛiÜ¦Ûi|d Û d Ûde¥j¦y} C-3.2 FCNR (B) Swap with RBI RBI introduced US Dollar-Rupee concessional ãØÛ^¥ àj¦||ÛiÜ¦Ûi|d Û q swap window for fresh FCNR (B), funds mobilized qj¦ÛãÛd|Ø®« l°ÎØj¦ÛlÛÎf|Î«ØÛ| in any permitted currency for a minimum tenor of Õfd{j¦d{j¦iiv¢¦}i« three years and above. In this window RBI offered ØÛz«} z|j¦Û¦dØj¦ÛÎe vj¦ a concessional rate of Swaps to banks only for ØÎØãØÛq¥~àj¦|j¦ÛãÛd|Ø® ij¦ fresh FCNR (B) deposits mobilized in any of the j¦ÛlÛiÜ¦Ûi|d ~Û q j¦i~àj¦ j¦ permitted currencies. }j¦ÛØzj¦}°Øj¦Îà The bank mobilized USD 1710 Million and àj¦| l°ÎØiv¢|ãØÛ^¥ àj¦ FRQVHTXHQWO\EDQNH[HFXWHGFRQFHVVLRQDOUDWHVZDSV j¦ y lÛ d{ j¦ i } j¦ o j¦ d Ûde¥ with RBI for the corresponding tenor. The swaps j¦y}Ø¥|}°ØØØØ}°Ø¥|z executed with RBI were done at 3.5% as against the SUHYDLOLQJUDWHRIDURXQGDQGFRQVHTXHQWO\ZRXOG }j¦lej¦}¦}}°y¥d}}§Ø KDYHGLVWRUWHGSUR¿WVORVVLQWKHVWDUWLQJ\HDUDVZHOO ØÛk}ã}°Øj¦Îj¦ØÎe|ÎØ}°Øj¦Ø as in maturity year. To avoid this inherent distortion, oi ãØÛ^¥ àj¦j¦|{¥«j¦d|Î|} and as prescribed by RBI, we have adopted the }e tj¦dteq|j¦Û}·Øj¦}j¦Û}Ûd{j¦ method of amortization of swap points to even out z|j¦|j¦|¥Î expenses throughout the tenor of swaps. (` j¦vÖ / ` in Crore) For the year ended For the year ended Particulars March 31, 2019 March 31, 2018 }° ãj¦ Opening Balance 108.30 100.86 qvÖ ¡d{j¦z|dt¥e¥qv Add: Amortized during the year 14.88 27.84 mti ¡}}§Ø}} Less: Reversed on maturity 123.18 -20.40 ˆºÅ¥¸ Total |Nil 108.30 ÛC}}§Ø}{ØÛ«`j¦vÖ|j¦Û C-3.33UR¿WRQ VDOH RI LQYHVWPHQW KHOG XQGHU ³+HOG WR ¨¦Û}ãj¦ãi Î|kØ«d ØØj¦l Maturity” category amounting to Rs 431.51 crores ÎØyd}¥}Øãj¦j¦|} qÛlØ}°Ø KDV EHHQ FUHGLWHG WR 3UR¿W /RVV$FFRXQW DQG Rs. 210.36 crore has been apportioned to Capital |{«d ØØj¦ÛlÛ Reserve Account.

184 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

Ûmi {fµj¦d{|j¦ØÎØ C-4 Payment to Micro, Small & Medium Enterprises under the Micro, mi {fµ«j¦ãlØ| Small & Medium Enterprises Development Act, 2006 There has been no reported cases of delayed mi {fµ«j¦z qj¦ãlØ|« payments of the principal amount or interest due zÛj¦j¦e¥}t¥|ÎÛ j¦lÎ WKHUHRQWR0LFUR6PDOO 0HGLXP(QWHUSULVHV Û} C-5 Premises Û àj¦j¦Ûj¦`j¦vÖ o¥31, 2018 `j¦vÖ C-5.1 Execution of conveyance deeds is pending in respect of certain properties amounting to Rs j¦Ûj¦â }Ï«j¦ {«ÎØ Økj¦|}z| 23.86 Crores (March 31, 2018: Rs 23.86 Crores). Î| j¦ÛÎ C-5.2 Premises include assets under construction Û}j¦d Øl¥Ø|¥{Û|`92.13j¦vÖ o¥31, amounting to Rs. 92.13 Crores (March 31, 2018: 2018 `178.10j¦vÖ j¦Û }Ï Îà Rs.178.10 Crores). Û ¢ Ü¦j¦¥qtv ¢ iÜ¦ii }¥«}¥¦} àj¦ C-6 BOB Fiscal Services Limited (BOBFSL), erstwhile d¢Ü×¦ vÖzj¦Ûd| lÛ¸j¦j ¦}|Ûj¦oâj¦¦} wholly owned subsidiary of Bank of Baroda (BOB), }Øj¦|j¦ j¦}}Øj¦ldfj¦iij¦ had passed a special resolution for voluntary winding XSRIWKH&RPSDQ\RQDQGWKH/LTXLGDWRU }}j¦j¦Û|§Øj¦zÛlÛ was appointed for the same. ¢ Ü¦j¦¥qtv| àj¦d¢Ü×¦ vÖzj¦yij¦rØ BOBFSL had entered into an agreement with BOB j¦ qj¦ ØÎØ z| j¦ ¢ iÜ¦ii j¦Û }¥ pursuant to which entire assets and liabilities of dØ i zØi fj¦}¥j¦}|j¦Ü¦¦}ij¦ BOBFSL were transferred to BOB as a going concern le lj ¦|¥ ¨¦Ûj¦¦}« àj¦d¢Ü×¦ vÖzj¦y| ØØj¦zi DVVDOHLQOLTXLGDWLRQRIWKHHQWLUHEXVLQHVVZHI lio j¦j ¦}|Ûo{Û|j¦||Ûj¦j¦}¥¦}}}Ø $VWKH&RPSDQ\FRXOGQRWEHOLTXLGDWHG |ÎÛ j¦Ûqj¦ØÛyÛdØ¡z| j¦o¥j¦ ¢ iÜ¦iij¦Û due to pending legal cases, a decision to merge ¥j¦| uj¦« ¢ iÜ¦iij¦ àj¦d¢Ü×¦ vÖz« BOBFSL with BOB was taken in the Annual General j¦|j¦|¥l Meeting of BOBFSL held on 30th March 2007. |zj¦ v¸ àj¦d¢Ü×¦ vÖzj¦y¥ ¢ Ü¦j¦¥ The Board of Directors of BOB has approved the j¦|j¦ àj¦j¦Ûz| j¦j¦dqØ uj¦« merger of BOBFSL with BOB in its Board meeting d|zØj¦ld ¢ foo|j¦k ¢ j¦y ¢ on 28.01.2009 and authorized the Management to ¿OH QHFHVVDU\ SHWLWLRQ IRU PHUJHU RI %2%)6/ ZLWK iÜ¦ii|ÎØdj¦oj¦zq¥j¦|j¦i}° {|j¦ BOB before the Bombay High Court. The matter is }°{j¦Øj¦ÎdãÛãÛ| ØÎà still pending before the judiciary. Ûd e v || d¢Ü¦ j¥¦| j¦ y z àj¦ j¦ C-7 The 11th Bipartite Settlement entered into by the ,QGLDQ%DQNV¶$VVRFLDWLRQRQEHKDOIRIWKHPHPEHU }«ãØÛ àj¦ m¸j¦l£¸}ÛrØz| j¦ Banks with the All India Unions of Workmen expired d§Ø j¦}ØÎlØ|| {|rØ«j¦ on 31st October 2017. In accordance with the Ø|}z|«j¦d|| lÎlqj¦i pending execution of agreement for wage revision, ¥j¦z|`j¦vÖ o¥}â¥| j¦ to be effective from 1st November 2017, a provision }°{|j¦lÎ of Rs.524.86 Crores (March 31, 2018: Rs. 100 crore) has been made during the year. Û àj¦ ãØÛk j¦||j¦ di|vÛii j¦j¦¥|| C-8 The Reserve Bank of India (RBI) vide DBR.BP.BC. ÎØ ãØÛ q¥ àj¦ ã à | vÛ Ûd Û}Û ÛÛ No. 76/21.07.001/2015-16 dated 11th February 2016, | z| j¦ Ü¦Û ¸ has prescribed the roadmap for implementation of v}|{¥Øj¦Îi àj¦ j¦e { Îe¥}°lØÎØ Indian Accounting Standards (Ind-AS) in the Banks and the Banks need to disclose the strategy for Ind- de¥i|vÛii j¦¥|| ÎØ |ÛØ j¦ }°j¦t| j¦| j¦Û AS implementation, including the progress made in dj¦ØÎØz| àj¦|de¥i|vÛiij¦j¦¥|| this regard. The Bank accordingly, has appointed a ÎØÎØij¦j¦ t t|§Øj¦Îà àj¦|Îe¥}°lØj¦ consultant to assist in implementation of the Ind-AS. The Bank has also constituted a Steering Committee }¥ÎØij¦tÛÌlØ |e¥ÎØyk}ÛØ to oversee the progress made and the Audit j¦}ej¦Ûo|j¦ÛqØÛÎj¦yØ}}¸ Committee of the Board is being apprised of the |{¥Ødj¦Ø| àj¦|q|j¦}Ød{ VDPHIURPWLPHWRWLPH,QWHUPVRIWKHUHTXLUHPHQW ÎØã àj¦}°¦}de¥i|vÛiiÏÛÛ}°ØØj¦zÛ stipulated vide said circular, the Bank has submitted TXDUWHUO\SURIRUPD,QG$6¿QDQFLDOVWDWHPHQWVWRWKH Îj¦ã à¸qÛCj¦|j¦|ÛØ RBI up to 31st December, 2018. Further, as per j¦Û Û d| de¥i|vÛii j¦ j¦¥|| ij¦ ¥ RBI circular DBR.BP.BC.No. 29/21.07.001/2018-19 dylØj¦zlÎ y}¥ dated 22.03.2019, the implementation of Ind AS on banks has deferred till further notice.

185 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Û àj¦ d¢Ü¦ vÖz j¦ y q àj¦ d z| àj¦ j¦ C-9 Amalgamation of Vijaya Bank and Dena Bank with Bank of | Baroda a) In exercise of power conferred by section 9 of the i àj ¦l j ¦}|Û f}¨¦« j¦ dq¥| d d Ø %DQNLQJ &RPSDQLHV $FTXLVLWLRQ DQG 7UDQVIHU d{| j¦ j¦Û{d àj ¦l of Undertaking) Act, 1970 (5 of 1970) and section j ¦}|Û f}¨¦«j¦dq¥|dd Ø d{| RI WKH %DQNLQJ &RPSDQLHV $FTXLVLWLRQ DQG j¦ j¦Û{¸}°zÏ§Ø«j¦}°l Transfer of Undertaking) Act, 1980 (40 of 1980), j¦ØÎiãØj¦|ãØÛq¥ àj¦j¦}¥ after consultation with the Reserve Bank of India, 7KH *RYHUQPHQW RI ,QGLD KDV QRWL¿HG WKH VFKHPH q|Ûj¦ àj¦d¢Ü¦ vÖz ej¦ z of amalgamation of Vijaya Bank and Dena Bank d Øj¦ àj¦j¦}« zã¥Ø j¦yq àj¦d (hereinafter collectively referred to as Transferor z| àj¦ ej¦ zÎj¦}d ØØÛ àj¦j¦ Banks) with Bank of Baroda (hereinafter referred to }« zã¥Ø j¦|j¦Ûq|j¦d{oØ as Transferee Bank) on 02nd January, 2019,. This j¦ÎÎq|d}°lÎlÛ scheme shall come into force on the 01st April, 2019. eq|j¦}° ãÎ|}d ØØÛ àj¦«j¦f}¨¦« On the commencement of this scheme, the undertakings of the Transferor Banks shall be j¦d Ø àj¦«tÐ Ü¦j¦zqild ØØÛ transferred to and shall vest in the Transferee àj¦«j¦f}¨¦«f|j¦d Øl¥ØãÛj¦ dØ Bank. Undertakings of the transferor banks shall be Ø¥ddØ¥oddoÎØ zØi q¥ deemed to include all business, assets (including d d{ d d| ãÛ d{j¦ d ÎØ q tangible and intangible, movable and immovable), d ØØÛ àj¦« j¦Û iÛ }Ï j¦ j¦ fØ}|| ÎØ OLDELOLWLHV5HVHUYH 6XUSOXVDQGDOORWKHUULJKWVDQG interests arising out of such property of the transferor Îàqe|f}¨¦«j¦ {«Îàqj¦q|j¦ Banks in relation to the undertakings as were }° ãuÛj¦}ÎyÛãØj¦ãÛØ Îd ØØÛ immediately before the commencement of scheme, àj¦«j¦Øj¦ q§Ø| «yÛrÛ in the ownership, possession, power or control of the qilÛ Transferor Banks within or Outside India. Û {Øk}ÛØ« §Ø j¦|}t¥ b) After taking into consideration the recommendation of the respective Audit d {Ø àj¦«j¦qÛj¦Ûle¥|}Ø {Û Committees, Joint Valuation Report and the j¦ÛÜ¦j¦{|«k|j¦ z {Ø àj¦« fairness opinion issued to the respective banks, j¦ v¥||d|}Ø ãÛ««} the Board of the respective banks has approved àj ¦l d | d{j¦ d ØØÛ àj¦ j¦ qz the Share Exchange Ratio (ranking pari passu e§tÛ«j¦}«ã j¦ {«zj¦e¥ in all respects and shall have the same rights DWWDFKHG WR WKHP DV WKH WKHQ H[LVWLQJ HTXLW\ Îqj¦eq|j¦Î|j¦ zd Øj¦ àj¦ shares of the Transferee Bank, including, ¸mØj¦qj¦ØÎ j¦||| qÛ in respect of dividends, if any, that may be zÛÎ¡ declared by the Transferee Bank, on or after the L q àj¦j¦}°Øj¦j¦e§tÛ« commencement of this scheme) as under:- } àj¦d¢Ü¦ vÖzj¦}°Øj¦j¦e§tÛ L HTXLW\VKDUHVRI5VHDFKRI%DQNRI %DURGDRIHYHU\HTXLW\VKDUHVRI5V 10 each of Vijaya Bank. LL z| àj¦j¦}°Øj¦j¦e§tÛ« LL HTXLW\VKDUHVRI5VHDFKRI%DQNRI } àj¦d¢Ü¦ vÖzj¦}°Øj¦j¦e§tÛ %DURGDRIHYHU\HTXLW\VKDUHVRI5V 10 each of Dena Bank. e§tÛ«j¦d j¦Û}Øj¦ {«|j¦zãlØ| ,QUHVSHFWRIHQWLWOHPHQWVWRIUDFWLRQRIHTXLW\VKDUHV }oj¦qil|j¦ {«dj¦ the consideration shall be paid in cash. Necessary accounting adjustments in regard of amalgamation k j¦|q|}°ãÛØÛk}j¦iqi l will be made on the effective date. &¥j¦z|j¦vÖj¦Û |j¦ÛzÛj¦|j¦ C-10 During the year unclaimed dividend amount qlj¦Ød |{ de¥e¥}ÛiÜ¦ j¦tÐÜ¦j¦Ûle¥ transferred to the Investor Education and Protection Î Fund (IEPF) without any delay is Rs 20.58 Crores. Û ,,, } qÛ || } ã à }} ¨¦ j¦ C-11 RBI Circular DBOD.NO.BP.BC.1/21.06.201/2015-16 dated July 01, 2015 on Basel III. : Capital vÛ ÛdvÛi| Û}Û ÛÛz| j¦ Regulations read together with RBI circular no DBR. qe¥j¦y}uØ} qÛ}¥}ØØ}j¦}¥z|z¥ NO.BP.BC. 80/21.06.201/2015-15 dated March 31, do|{|j¦ {|}ã à}} RQ3UXGHQWLDO*XLGHOLQHVRQ&DSLWDO$GHTXDF\

186 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

zo¥j¦d| àj¦j¦ ,,,Ý¦j¥¦j¦ DQG/LTXLGLW\6WDQGDUGV$PHQGPHQWVUHTXLUHVEDQNV to make applicable Pillar 3 disclosures including ØÎØqd|}Øo|{j¦qd|}ØÎØl} OHYHUDJHUDWLRDQGOLTXLGLW\FRYHUDJHUDWLRXQGHUWKH }°j¦tÛj¦j¦|j¦Ûdj¦ØÎàÎÛ et“ZZZ Basel- III framework. These details are being made EDQNRIEDURGDFRP”}f} {j¦iqÎÎàe|}°j¦tÛj¦«j¦ available on our website “www.bankofbaroda.com”. k}Ûj¦«¸k}Ûj¦d{Û||ÎÛ j¦lÎ These disclosures have not been subjected to audit by the auditors. Û}â¥j¦d j¦v j¦}|:ij¦Øj¦lqÎ£Ø¥|¥ C-12 3UHYLRXV\HDU¶V¿JXUHVKDYHEHHQUHJURXSHGZKHUH j¦lÛ¥ j¦j¦d|}Î|dj¦Î QHFHVVDU\WRFRQIRUPWRFXUUHQW\HDUFODVVL¿FDWLRQ

187 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

o¦j§~Ù¦j§i}j§{Ü~±Ï ~ Statement of Cash Flow for the year ended 31st March 2019

`LQ V o¥ o¥ j¦}Ø¥ j¦}Ø¥ Year ended Year ended 31st March 2019 31st March 2018 i ~ o}lÙ|¡}j§{Ü~±Ï¢ A. Cash flow from operating activities: j§ ~¦}ä Net Profit before taxes 698,14,96 (2790,74,31) ||kØj¦iq|¡ Adjustments for: dodØ«}¾ Depreciation on fixed assets 910,37,91 863,07,79 |«}¾ Depreciation on investments (including 158,62,32 768,19,72 }}§h}«ÎØ on Matured debentures) t¤tkØvlid{h Bad debts written-off/Provision in 12192,39,70 14211,71,96 d|q¥j¦dØ«j¦i}°{| respect of non-performing assets |j¦dØ«j¦i}°{| Provision for Standard Assets (35,49,49) (369,01,81) d|z«j¦i}°{| | Provision for Other items (Net) 473,14,74 185,40,24 do dØ« j¦Û ¨¦Û ã Î| Profit/(loss) on sale of fixed assets (15,35,54) (69,59,40) | (Net) lh«} qÎØãlØ|}°{| Payment/provision for interest on 1187,38,39 1187,38,39 dll subordinated debt (treated separately) d| lÛej¦e«d|}°}Øã Dividend received from subsidiaries/ (154,08,40) (133,38,34) dll others (treated separately) ~¦l Sub total 15415,14,59 13853,04,24 ||kØj¦iq|¡ Adjustments for: |«« · j¦Û (Increase)/Decrease in investments (17678,96,58) (34027,95,93) dl°«« · j¦Û (Increase)/Decrease in advances (53579,30,19) (58384,32,78) d|dØ«« · j¦Û (increase)/Decrease in other assets 1342,63,71 (6211,70,79) f{««· j¦Û Increase/(Decrease)in borrowings 4075,02,58 32402,28,21 q««· j¦Û Increase/(Decrease) in deposits 47374,89,48 (10360,35,05)

d|zØd«Øy}°{|««· j¦Û Increase/(Decrease) in other liabilities 3070,23,76 431,80,69 and provisions }°zÏ}°Øj¦ Ü ¦vj¦Û| Direct taxes paid (Net of Refund) (4139,30,16) 1209,37,50 ~ o}lÙ|¡}}j§{Ü i Net cash from operating activities (4119,62,81) (61087,83,91) (A)

188 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ú Financial Statement

`LQ V o¥ o¥ j¦}Ø¥ j¦}Ø¥ Year ended Year ended 31st March 2019 31st March 2018 Ü }¡¡|ÜlÙ|¡}j§{Ü~±Ï B. Cash flow from investing activities: dodØ«j¦ÛkÛzd Ø Purchase/ Transfer in of fixed assets (2616,87,32) (574,56,04) dodØ«j¦Û ¨¦Ûd Ø Sales/ Transfer out of fixed assets 98,94,63 172,05,76 } {Û|««}Ø¥| Changes in Trade related investments (1593,20,87) (294,22,88) d| lÛi d| (Subsidiaries & others) d| lÛej¦e«d|«}°}Øã Dividend received from subsidiaries/ 154,08,40 133,38,34 others }¡¡|ÜlÙ|¡¡f~lj§Üle¦ Net cash used in investing activities (3957,05,16) (563,34,82) }}j§{Ü Ü (B) Ü Ð~¡¡|ÜlÙ|¬}j§{Ü~±Ï¢ C. Cash flow from financing activities: } qÛ Share Capital - 68,27,13 dz| Share application money 5042,00,00 - }°Û Share premium - 5306,72,87 lq|ØÛl v Unsecured Subordinated Bonds 554,30,01 (441,75,02) ã j¦ÎØ}°zÏã Dividend paid including dividend tax - 332,78,78 lq|ØÛl v« Interest paid / payable on unsecured (1187,38,39) (1187,38,39) }}°zÏz q subordinated bonds Ð~lÙ|¬}}j§{Ü Ü Net cash from financing activities 4408,91,62 4078,65,37 (C) }j§{Üi¡}j§{ÜÙ Net increase in cash & cash (3667,76,35) (57572,53,36) ¬}¸ i Ü Ü equivalents (A)+(B)+(C) ¥j¦}° ã«|j¦zÛ|j¦zÛØ Cash and cash equivalents as at the 92897,37,89 150469,91,25 beginning of the year ¥j¦d Ø«|j¦zÛ|j¦zÛØ Cash and cash equivalents as at the 89229,61,54 92897,37,89 end of the year t~~Ü¢ Notes: |j¦zÛ Øy |j¦zÛ Ø « àj¦ j¦ } 1. Cash & Cash equivalents includes |j¦zÛ ãØÛ ^¥ àj¦ i d| àj¦ j¦ Cash on hand, Balance with RBI & } |d li d}o|}{| Other banks and Money at call and tÎ Short Notice. }j§{ÜÙz}j§{ÜÙj§mtj§ 2. Components of Cash & Cash As on As on Equivalents 31st March 2019 31st March 2018 ãØÛ^¥ àj¦j¦}|j¦zÛi Cash & Balance with RBI 266617283 226996398 àj¦« j¦ } d l i d} Balances with Banks and Money at 625678871 701977391 o|}}°Øz Call and Short Notice ˆºÅ¥¸ Total 892296154 928973789

189 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ù¡k~ Üj§¡j§Ü ~t¦ ,QGHSHQGHQW$XGLWRUV5HSRUW

To « The Members of Bank of Baroda àj¦ ‚¸ÁûÅ vÖz ˆ½Å zl Independent Auditors Report on the Standalone Financial àj¦‚¸ÁûÅ vÖzˆ½Åtàvd|ÏÛ«}Ø Statements of Bank of Baroda k}Ûj¦ j¦Û}t¥ Opinion £¸ 1. We have audited the standalone financial statements of Bank of Baroda (“the Bank”) which comprises the Balance ÎŸ¸›¸½ ¸àj¦ ‚¸¢Ü¦ ¸vÖ¸z¸ ¸àj¦ j½¦ ¬tàv‚¥¸¸½›¸ ¢¨¸Ï¸Û¸ ¢¨¸¨¸¸¸Ê Sheet as at March 31, 2019, the standalone Profit and j¦Û ¥¸½k¸¸œ¸Û¸¸ j¦Û Î, ¢q¸¬¸Ÿ¸Ê Ÿ¸¸o¸¥, j¦¸ ÷¸º¥¸›¸œ¸¸, Loss Account and the standalone Cash Flow Statement ¬tàv‚¥¸¸½›¸¥¸¸ã¸‚¸Î¸¢›¸k¸¸÷¸¸‚¸¬¸¸Ÿ¸¸œ÷¸¨¸«¸¥Î½÷¸º¬tàv‚¥¸¸½›¸ for the year then ended including summary of significant ›¸j¦zÛœÏ¨¸¸Î¢¨¸¨¸¸©¸¸¢Ÿ¸¥¸Îà,¢q¸¬¸Ÿ¸ÊŸ¸Î÷¨¸œ¸¸¥¥¸½k¸¸¿j¦›¸›¸Û¢÷¸¸¸Ê accounting policies and other explanatory information. ‚¸‚›¸¢¨¸¨¸¸¸÷Ÿ¸j¦q¸¸›¸j¦¸Ûj¦¸¬¸¸¸¿©¸©¸¸¢Ÿ¸¥¸Î 2. In our opinion and to the best of our information and ÎŸ¸¸Û ¸¸ ‚¸ ÎŸ¸¸Û ¬¸¨¸¸½¥Ï¸Ÿ¸q¸¸›¸j¦¸Û Ÿ¸Ê ‚¸ ÎŸ¸Ê ¢z‡l¸‡ according to the explanations given to us, the aforesaid ¬œ¸«tÛj¦¸j½¦‚›¸º¬¸¸,„œ¸¸½§÷¸¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸ ¸à¢j¿¦l¸ standalone financial statements give the information ¢¨¸¢›¸¸Ÿ¸›¸‚¢{¸¢›¸¸Ÿ¸,¸¸¸‚œ¸½¢¸÷¸q¸¸›¸j¦¸Ûe¬¸œÏj¦¸Î required by the Banking Regulation Act, 1949 in the q¸¸½ ¸àj¦j½¦¢¥¸‡q¸³Û‚¸ã¸¸÷¸Ÿ¸Ê¬¸¸Ÿ¸¸›¸÷¸¡¬¨¸Ûj¦¸¸¥¥¸½k¸¸¿j¦›¸ manner so required for bank and are in conformity with ¢¬¸·¸¿÷¸¸Êj½¦‚›¸º³œ¸Îà accounting principles generally accepted in India and give: D Ÿ¸¸o¸¥,j¦¸½ ¸àj¦j½¦j¦¸¸¸½ô,÷¸º¥¸›¸œ¸¸j¦Û¬˜¸¢÷¸j¦¸ a. true and fair view in case of the Balance sheet, of the ¬¸÷¸‚¸¢›¸«œ¸¸‚¨¸¥¸¸½j¦›¸ state of affairs of the Bank as at 31st March, 2019; E „¬¸÷¸¸Ûk¸j¦¸½¬¸Ÿ¸¸œ÷¸¨¸«¸¥j½¦¢¥¸‡¥¸¸ã¸Î¸¢›¸k¸¸÷¸½j½¦Ÿ¸¸Ÿ¸¥¸½ b. true balance of Profit in case of Profit / Loss account for the year ended on that date; and Ÿ¸Ê¢›¸¨¸¥¸¥¸¸ã¸÷¸˜¸¸ c. true and fair view in case of statement of cash flows F „¬¸÷¸¸Ûk¸j¦¸½¬¸Ÿ¸¸œ÷¸¨¸«¸¥j½¦¢¥¸‡›¸j¦zÛœÏ¨¸¸Î¢¨¸¨¸¸j½¦ for the year ended on that date. Ÿ¸¸Ÿ¸¥¸½Ÿ¸Ê¬¸÷¸‚¸¢›¸«œ¸¸‚¨¸¥¸¸½j¦›¸ Basis for opinion ˆÅ¸d{ 3. We conducted our audit in accordance with the Standards ÎŸ¸›¸½¥¸½k¸¸œ¸Û¸¸ ‡¬¸‡ Ÿ¸¸›¸j¦¸Êj½¦‚›¸º¬¸¸¥¸½k¸¸œ¸Û¸¸j¦ÛÎ on Auditing (the “SAs”). Our responsibilities under those ÎŸ¸¸½¢œ¸¸½t¥j½¦¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦Û¥¸½k¸¸œ¸Û¸¸j½¦ SAs are further described in the Auditor’s Responsibilities ¢¥¸‡¥¸½k¸¸œ¸Û¸¸ ‡¬¸‡ Ÿ¸¸›¸j¦¸Êj½¦‚¿÷¸l¸¥÷¸ÎŸ¸¸½„Ï¸z¸¢¸÷¨¸¸Ê for the Audit of the standalone financial statements j¦¸‚¸‚¢{¸j¦„¥¥¸½k¸CC¥¸½k¸¸œ¸Û¸j¦¸Êj½¦„Ï¸z¸¢¸÷¨¸ Ÿ¸Ê section of our report. We are independent of the Bank ¢j¦¸¸l¸¸¸Î in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with ÎŸ¸ ã¸¸÷¸Û¸ ¬¸›¸zÛ ¥¸½k¸¸j¦ ¬¸¿¬˜¸¸›¸ ¸¸¸ q¸¸Û ›¸¢÷¸j¦ ‚¸o¸¸ the ethical requirements that are relevant to our audit of ¬¸¿¢Î÷¸¸j½¦‚›¸º¬¸¸›¸¢÷¸j¦‚¸¨¸©¸j¦÷¸¸j½¦¬¸¸˜¸ ¸àj¦¬¸½¬¨¸÷¸¿¸Îà, the standalone financial statements, and we have fulfilled q¸¸½ÎŸ¸¸Û¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦Û¥¸½k¸¸œ¸Û¸¸j½¦‚›¸º³œ¸ our other ethical responsibilities in accordance with these Î÷¸˜¸¸ÎŸ¸›¸½e›¸‚¸¨¸©¸j¦÷¸¸‚¸Ê‚¸›¸¢÷¸j¦‚¸o¸¸¬¸¿¢Î÷¸¸j½¦ requirements and the Code of Ethics. We believe that ‚›¸º³œ¸‚œ¸›¸Û‚›¸›¸¢÷¸j¦¢q¸ŸŸ¸½z¸¢¸¸Êj¦¸½œ¸¸¢j¦¸¸ÎÎŸ¸Ÿ¸¸›¸÷¸½ the audit evidence we have obtained is sufficient and Îà¢j¦ÎŸ¸›¸½q¸¸½¥¸½k¸¸œ¸Û¸¸¬¸¸¸œÏ¸œ÷¸¢j¦‡Îà,¨¸½ÎŸ¸¸Û¸¸j¦¸½ appropriate to provide a basis for our opinion. ‚¸{¸¸œÏz¸›¸j¦›¸½j½¦¢¥¸‡œ¸¸¸¥œ÷¸‚¸„œ¸¸º§÷¸Îà Key Audit Matters k}Û {ÛœÏŸ¸º‰¸Ÿ¸ºÓ½ 4. Key audit matters are those matters that, in our ÎŸ¸¸½œ¸½©¸½¨¸¢›¸¸¥¸j½¦‚›¸º¬¸¸¥¸½k¸¸œ¸Û¸¸¬¸¿ ¸¿{¸ÛœÏŸ¸ºk¸Ÿ¸ºÓ½¨¸½ professional judgment, were of most significance in our Ÿ¸ºÓ½Îàq¸¸½o¸¸¥¸‚¨¸¢{¸j½¦¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦ÛÎŸ¸¸Û audit of the standalone financial statements of the current ¥¸½k¸¸œ¸Û¸¸Ÿ¸Ê¬¸ ¸¬¸½Ÿ¸Î÷¨¸œ¸¸¥˜¸½e›¸Ÿ¸ºÓ¸Êj¦¸½¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸ period. These matters were addressed in the context ¢¨¸¨¸¸¸Êj¦ÛÎŸ¸¸Û¥¸½k¸¸œ¸Û¸¸j½¦¬¸¿ ¸¿{¸Ÿ¸Ê‚¸e¬¸Ÿ¸ÊÎŸ¸¸Û¸¸ of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not ¸›¸¸›¸½ Ÿ¸Ê œ¸¸¥ „¥¥¸½k¸ ¢j¦¸¸ l¸¸¸ ˜¸¸ ÷¸˜¸¸ ÎŸ¸ e›¸ Ÿ¸ºÓ¸Ê Ÿ¸Ê ‚¥¸l¸ ¬¸½ provide a separate opinion on these matters. ¸¸›¸ÎÛ¿z½÷¸½Îà

190 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

Information Technology Our Audit Approach o| }°µlj¦Û íŸ¸¸£½ k}Û (IT) and controls de¥tÛ ‚¸¾£ ÏÛ tj¦ impacting financial We have obtained }tÕl ˆÅ¸½ }°ãØ ÎŸ¸›¸½ ¸àj¦j½¦‚¸e¥tÛ¬¸¿ ¸¿{¸Ûœ¸¢¨¸½©¸j¦¸½ reporting understanding of the IT related environment of the Bank, and ˆÅ£›¸½| ¬¸Ÿ¸r¸¸ Î‚¸ ÷¸z›¸º¬¸¸ ‡½¬¸½ q¸¸½¢k¸Ÿ¸ The IT environment is complex and pervasive had accordingly identified IT ¢¨¸Ï¸Û¸ ¢œ¸¸½¢tôl¸ œÏ¢¨¦¸¸ j½¦ j¦¸Ÿ¸¥¸¸¿j¦›¸j¦›¸½,q¸¸½¢¨¸Ï¸Û¸¢œ¸¸½¢tôl¸ to the operations of the applications, databases and ¬¸¿ ¸¿{¸ Ÿ¸Ê ‚¸e¥tÛ œ¸¢¨¸½©¸ œ¸œÏã¸¸¨¸v¸¥¸¬¸j¦÷¸½Îà,j½¦¢¥¸‡‚¸e¥tÛ Bank with regards to the operating systems to conduct ¸àj¦ j½¦ œ¸¢o¸¸¥¸›¸ j½¦ ¢¥¸‡ ‡œ¥¸j½¦©¸›¬¸, v½t¸ ¸½¬¸ ‡¨¸¿ ‚¸¢œ¸½¢t¿l¸ financial reporting process risk assessment which may impact on the financial q¸¢t¥¸‚¸¨¸¸œ¸j¦Î§¸¸Ê¢j¦ œÏ¸¸¢¥¸¸¸Êj¦¸¢›¸{¸¸¥¸¢j¦¸¸Î since the same is highly dependent on information reporting. œ¸¢o¸¸¥¸›¸¸Ê j½¦ ‚¸j¦¸ ‚¸ e¬¸¸½¸Ÿ¸ÊÎŸ¸¸Û¥¸½k¸¸œ¸Û¸¸œÏ¢¨¦¸¸‚¸Ê technology including Our audit procedures in this q¸¢t¥¸÷¸¸j½¦j¦¸¸¬¨¸o¸¸¢¥¸÷¸ Ÿ¸Ê‚›¸j½¦¬¸¸˜¸¢›¸Ÿ›¸¢¥¸¢k¸÷¸©¸¸¢Ÿ¸¥¸ automated and manual area included, among others: controls and availability ‚¸ Ÿ¸›¸º‚¥¸ ¢›¸¸¿¸¸ ‚¸ Îà¡ x Testing IT general of complete and accurate œ¸¸¥‚¸¬¸tÛj¦e¥¸½§tÐ¸¢¢›¸j¦ x ¸^¸ ‡¨¸¿ ‡œ¥¸j½¦©¸›¸ ¢›¸¸¿¸¸, controls related to User electronic data due to the and Application controls, v½t¸ j¦Û „œ¸¥¸ {¸÷¸¸ ¬¸¢Î÷¸ o¸Êq¸ Ÿ¸›¸½q¸Ÿ¸Êt ¢›¸¸¿¸¸ ‚¸ size and complexity of the Change Management ¬¸o¸›¸¸ œÏ¸µ¸¸½¢l¸j¦Û œ¸ v½t¸ ¸j¦‚œ¸ ¬¸½ ¬¸¿ ¸¿¢{¸÷¸ ‚¸e¥tÛ operations. Controls and Data backup. Unauthorized or extensive ‚÷¸¢{¸j¦¢›¸ã¸¥Î ¬¸¸Ÿ¸¸›¸ ¢›¸¸¿¸¸¸Ê j¦¸ œ¸Û¸¸ x Assessing whether access rights, changes ‚›¸¢{¸j¦÷¸¸¸¨¸¸œ¸j¦‡Æ¬¸½¬¸ j¦›¸¸ appropriate restrictions in IT environment, were placed on access ‚¢{¸j¦¸,‚¸e¥tÛœ¸¢¨¸½©¸Ÿ¸Ê x œÏ¸¢{¸j¦÷¸ j¦¢Ÿ¸¥¸¸Ê j¦Û ‚›¸ºŸ¸¢÷¸¸¸Ê operational controls, lack to core systems through of segregation of duties œ¸¢¨¸÷¸¥›¸,œ¸¢o¸¸¥¸›¸¢›¸¸¿¸¸, ‚¸ ¢q¸ŸŸ¸½z¸¢¸¸Ê j¦Û ¬¸Ÿ¸Û¸¸ reviewing the permissions which may cause a risk of j¦÷¸¥¨¸¸Êj½¦¢¨¸ã¸¸q¸›¸Ÿ¸Êj¦Ÿ¸Û j½¦ Ÿ¸¸{¸Ÿ¸ ¬¸½ j¦¸½ ¢¬¸¬tŸ¸ j½¦ and responsibilities of misstatement of financial authorised personnel. q¸¸½ ¢¨¸Ï¸Û¸ q¸¸›¸j¦¸Û j½¦ ‡Æ¬¸½¬¸œ¸„œ¸¸ºÆ÷¸œÏ¢÷¸ ¸¿{¸¸Êj¦¸ information and could have x Where we identified the l¸¥¸÷¸ Î¸½›¸½ j¦¸ q¸¸½¢k¸Ÿ¸ œ¸z¸ Ÿ¸¥¸¸¿j¦›¸ a material consequence need to perform additional on the completeness and j¦ ¬¸j¦÷¸Û Î ‚¸ ¢¨¸Ï¸Û¸ x q¸Î¸¿ ÎŸ¸›¸½ ‚¢÷¸¢Æ÷¸ œÏ¢¨¦¸¸‚¸Ê procedures, accuracy of the financial ¢¨¸¨¸¸¸Ê j¦Û œ¸¸¥÷¸¸ ‚¸ j¦¸½ j¦›¸½ j¦¸ ¢›¸{¸¸¥¸ ¢j¦¸¸ Î, we placed reliance on statements. manual compensating ¬¸tÛj¦÷¸¸œ¸l¸¿ã¸Ûœ¸¢¸¸Ÿ¸ ¨¸Î¸¿ ÎŸ¸ Ÿ¸›¸º‚¥¸ ¸¢÷¸œ¸¢÷¸¥ Due to high level of controls; such automation, number Î¸½¬¸j¦÷¸¸Î ¢›¸¸¿¸¸¸Ê œ¸ ¢›¸ã¸¥ Îà q¸¬¸½ ¢j¦ as reconciliations of integrated / non – „oo¸ ¬÷¸ j½¦ ‚¸¢t¸½Ÿ¸½©¸›¸ œÏ¸¸¢¥¸¸¸Ê ‚¸ ¬¸o¸›¸¸ j½¦ ‚›¸ between systems integrated systems used, and other information j½¦ j¦¸¸, j¦e¥ ‡j¦Ûj¦÷¸ è¸¸½÷¸¸Ê j½¦ ¸Ûo¸ ¬¸¸Ÿ¸¿q¸¬¸ ¸¸ this is a significant matter sources or performing l¸‡j¦Ûj¦÷¸ œÏ¸¸¢¥¸¸¸Ê j¦¸ ‚¢÷¸¢Æ÷¸ q¸¸¿o¸ j¦›¸¸ œ¸¸¸¥œ÷¸ for our audit. additional testing; „œ¸¸¸½l¸ ¢j¦¸¸ q¸¸÷¸¸ Î,¸Î ‚¸ „œ¸¸ºÆ÷¸ ¥¸½k¸¸œ¸Û¸¸ ¬¸¸¸ extended our sample ÎŸ¸¸½ ‚¸¢ vt j½¦ ¢¥¸‡ ‡j¦ œÏ¸œ÷¸ j¦›¸½ j½¦ ¢¥¸‡ÎŸ¸›¸½ ›¸Ÿ¸»›¸¸ sizes, to obtain adequate Ÿ¸Î÷¨¸œ¸¸¥Ÿ¸ºÓ¸Î ‚¸j¦¸j¦¸¢¨¸¬÷¸¸¢j¦¸¸Î and appropriate audit evidences.

191 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Accuracy in classification Our Audit Approach h ‚¸¾£ dl°« ˆ½Å íŸ¸¸£½k}Ûtj¦ of Loans and Advances, We had obtained ÎŸ¸›¸½ ‚›¸q¸¥j¦ ‚¸¬÷¸¸¸Ê, œÏ¸¨¸{¸¸›¸ j½¦ lÛ¥j¦f« }°{| provision thereon and understanding from the Bank ‚¸¾£ d |{¥ « ¢›¸{¸¸¥¸j½¦¢¥¸‡ã¸¸÷¸Û¸¢^¸¨¸¥ ¸àj¦ recognition of income about the controls built in the tÛj¦Ø j½¦¢z©¸¸¢›¸z½¥©¸¸Ê‚¸e¬¸¬¸½¬¸¿ ¸¿¢{¸÷¸ ¸àj¦ The net advances of the system, checks and balances ¸àj¦ j¦¸ ¢›¸¨¸¥¸ ‚¢lÏŸ¸jº¦¥¸ j¦Û›¸Û¢÷¸¸¸Êj½¦‚›¸ºœ¸¸¥¸›¸Ÿ¸Ê¬¸ŸŸ¸¢¥¸÷¸ Bank constitutes of 60.03% incorporated with respect ‚¸¬÷¸¸¸Êj¦¸ Î, œÏ¸¸¥¸Û Ÿ¸Ê ¢›¸¢Ÿ¸¥÷¸ ¢›¸¸¿¸¸¸Ê,o¸½j¦ ‚¸ of the total assets, which is to adherence to the RBI the significant part of the guidelines and related Bank’s q¸¸½¢¨¸Ï¸Û¸¢¨¸¨¸¢¸¸¸Êj¦¸‡j¦ ¸¥¸Ê¬¸Ÿ¸Êj½¦ ¸¸½Ÿ¸Ê ¸àj¦¬¸½q¸¸›¸¸‚¸ financial statements. Policies for identification of Ÿ¸Î÷¨¸œ¸»¸¥ã¸¸l¸Î ÷¸z›¸º¬¸¸ÎŸ¸¸Û¥¸½k¸¸œ¸Û¸¸œÏ¢¨¦¸¸‚¸Ê Besides following the non – performing assets, ã¸¸÷¸Û¸ ¢^¸¨¸¥ ¸àj¦ j¦Û¸¸½q¸›¸¸ ¸›¸¸e¥ prudential norms on provisioning and had ‚¸ ¸Û‚¸e¥ ¸¸¸q¸¸Û ÎŸ¸›¸½ ©¸Û«¸¥ m¸½¥¸» ©¸¸k¸¸‚¸Ê j¦Û Income Recognition, accordingly planned our audit Asset Classification and procedures. ‚¢lÏŸ¸¸Ê ¬¸½ ¬¸¿ ¸¿¢{¸÷¸ ‚¸¸ ¥¸½k¸¸œ¸Û¸¸ j¦Û ˜¸Û ‚¸ ‚›¸m¸½¥¸» Provisioning relating to We have audited top 20 ¢›¸{¸¸¥¸, ‚¸¬÷¸ ¨¸l¸Û¥j¦¸ ‚¸¢¨¸z½©¸Û©¸¸k¸¸‚¸Êj½¦¢¥¸‡ ¸àj¦¸¸¸ Advances issued by the domestic branches and have ‚¸œÏ¸¨¸{¸¸›¸¬¸¿ ¸¿{¸Û¢¨¸¨¸½j¦œ¸»¸¥ o¸¸¢›¸÷¸©¸¸k¸¸¥¸½k¸¸œ¸Û¸j¦¸¸¸¢j¦‡ Reserve Bank of India relied on the work done by (“RBI”), the Bank also Ÿ¸¸›¸z¿v¸Êj¦¸ œ¸¸¥¸›¸ j¦›¸½ j½¦ l¸‡j¦¸¸¥œ¸¢›¸ã¸¥˜¸½ the branch auditor for other has certain policies for ‚¥¸¸¨¸¸, ¸àj¦j½¦œ¸¸¬¸‚›¸q¸¥j¦ ©¸Û«¸¥ m¸½¥¸» ©¸¸k¸¸‚¸Êj½¦ ÎŸ¸¸½ domestic and foreign branches provisioning on non – ‚¸¬÷¸¸¸Ê œ¸ œÏ¸¨¸{¸¸›¸ j¦›¸½ ¥¸½k¸¸œ¸Û¸¸j½¦ ¬¸¿ ¸¿{¸ Ÿ¸ÊÎŸ¸¸Û selected by the Bank. performing assets. j½¦¢¥¸‡jº¦â›¸Û¢÷¸¸¸¿ã¸ÛÎà ¥¸½k¸¸œ¸Û¸¸ œÏ¢¨¦¸¸‡¿ ¢›¸Ÿ›¸¢¥¸¢k¸÷¸ œ¸ Due to reliance placed Our audit procedures with ‚¸Î¸ ©¸¢Æ÷¸ l¸¸›¸¸‚¸Ê, jÊ¦¢®÷¸˜¸Û¡ on data submitted by respect to our audit of top 20 œÏ¢÷¸ã¸»¢÷¸ Ÿ¸»¥¸¸¿j¦›¸ j½¦ ¢¥¸‡ x h¸ j¦¸¸¥¢›¸«œ¸¸z›¸ ¢›¸l¸¸›¸Û the borrowers & lead domestic branches, focused ‚›¸ œ¸¸,ã¸¸÷¸Û¸ ¢^¸¨¸¥ j¦Û œÏ¢¨¦¸¸ j½¦ œ¸¸¬¸ œÏŸ¸ºk¸ bank for Drawing Power on – calculations, third party ¸àj¦ ¸¸¸ q¸¸Û ¢j¦‡ l¸‡ ¢›¸¸¿¸¸¸Ê j¦Û ¢vq¸¸e›¸ ‚¸ for security valuation, x Review of design and ¢¨¸¢ã¸››¸ ¢z©¸¸¢›¸z½¥©¸¸Ê j½¦ œ¸¢o¸¸¥¸›¸ œÏã¸¸¨¸j¦¸¢÷¸¸ computation of provisions operating effectiveness ‚›¸º¬¸¸œÏ¸¨¸{¸¸›¸¸Êj¦Ûl¸¸›¸¸, j¦Û ¬¸Ÿ¸Û¸¸ ¢q¸¬¸Ÿ¸Ê ‚¸Î¸ as per various guidelines of key controls around ‚¢lÏŸ¸Î¸¢›¸j½¦¢¥¸‡œÏ ¸¿{¸›¸ ©¸¢Æ÷¸ ‚¸ œÏ¢÷¸ã¸»¢÷¸ issued by the RBI, the process of loan management judgements performance monitoring ¢›¸¸¥¸,œ¸º›¸l¸¥¢u÷¸ ‚¢lÏŸ¸¸Ê j½¦ Ÿ¸»¥¸¸¿j¦›¸ j½¦ ‚¸j¦¥¸›¸ j¦¸ for impairing advances, which includes basis ¢¥¸‡ m¸t÷¸½ Ÿ¸»¥¸ j¦Û l¸¸›¸¸ ‚¸{¸¸©¸¸¢Ÿ¸¥¸Î computation of diminution of assessing drawing ‚¸ ‚›¸q¸¥j¦ ‚¢lÏŸ¸¸Ê Ÿ¸Ê x ›¸Ÿ¸»›¸¸ ‚¸{¸¸ œ¸ ‚›¸q¸¥j¦ value for restructured power and security ©¸¸¢Ÿ¸¥¸ ¸¸q¸‚¸¸¢›¸{¸¸¥¸ ‚¢lÏŸ¸¸Ê j½¦ ¢¥¸‡,ÎŸ¸›¸½ advances and recognition valuations. x For non-performing j½¦ ¢¥¸‡ „{¸¸j¦÷¸¸¥‚¸Ê ‚¸ ¬¸¿œ¸¸¢æ¸¥j¦÷¸¸ ‡¨¸¿ ›¸j¦zÛ of interest income including in non – performing advances on sample ‚lÏ¸Û ¸àj¦ ¸¸¸ œÏ¬÷¸º÷¸ œÏ¨¸¸Î j½¦ Ÿ¸»¥¸¸¿j¦›¸ ¬¸¢Î÷¸ advances; we have basis, we have v½t¸œ¸¢›¸ã¸¥÷¸¸j½¦j¦¸¸ ¢¨¸Ï¸Û¸ ¢¨¸¨¸¸¸Ê, œÏ¢÷¸ã¸»¢÷¸ considered this to be a key performed loan file ÎŸ¸›¸½e¬¸½¥¸½k¸¸œ¸Û¸¸j¦¸‡j¦ j¦Û Ÿ¸¸q¸»zl¸Û j¦¸ ¢›¸Û¸¸ audit matter. reviews to inspect Ÿ¸Î÷¨¸œ¸»¸¥Ÿ¸ºÓ¸Ÿ¸¸›¸¸Î j¦›¸½ ‚¸ ¥¸½k¸¸ ¸¢Î¸¸Ê financial particulars, existence of security Ÿ¸Ê ¢›¸{¸¸¥¢÷¸ œÏ¸¨¸{¸¸›¸¸Ê j¦Û and assessed the

192 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

œ¸¸¸¥œ÷¸÷¸¸j¦¸‚¸j¦¥¸›¸j¦›¸½ adequacy of the provisions recognized Î½÷¸ºh¸Ü¦¸e¥¸j¦Û¬¸Ÿ¸Û¸¸ in the books of accounts j¦ÛÎ including valuation of x Ÿ¸»¥¸{¸›¸, ¬¸¿¢¨¸z¸l¸÷¸ ¸¸q¸, collateral and the cash flows. Ÿ¸º®¸‚¸Ê‚¸œ¸¢œ¸Æ¨¸÷¸¸j¦Û x Verification of interest ÷¸¸Ûk¸¸Ê q¸¬¸½ e›¸œ¸ºt v½t¸ income credited on j½¦¬¸¸˜¸Ÿ¸¸¢¬¸j¦‚¸{¸¸œ¸ a monthly basis with the input data, such ¸¸q¸ ‚¸{¸¸¢÷¸ ‚¸¸ j¦¸ as principal amounts, ¬¸÷¸¸œ¸›¸ ¬¸¸ã¸»÷¸ œ¸Û¸¸ contractual interest ‡¨¸¿ ¬¸¸½÷¸ z¬÷¸¸¨¸½q¸¸Ê j¦Û rates, currencies and maturity dates tÐ½¢¬¸¿l¸ j½¦ Ÿ¸¸{¸Ÿ¸ ¬¸½ ¢j¦¸¸ were tested through l¸¸¸˜¸¸ substantive testing and tracing to source „œ¸¸½Æ÷¸ j½¦ ‚¥¸¸¨¸¸,ÎŸ¸›¸½ ¬¸Ÿ¸¨¸÷¸Û¥ documents. ¥¸½k¸¸œ¸Û¸j¦j¦Û¢œ¸¸½t¸½ô÷¸˜¸¸ ¸àj¦¸¸¸ Besides above, we have also j¦¨¸¸e¥ l¸e¥ ‚›¸ ¥¸½k¸¸œ¸Û¸¸‚¸Ê j¦Û referred to the reports of the concurrent auditor and other ¢œ¸¸½t¸½ôj¦¸½ã¸Û{¸¸›¸Ÿ¸Êk¸¸Î audits conducted by the Bank. ÎŸ¸¸½¸¸¸¥¸½k¸¸œ¸Û¢¸÷¸©¸¸k¸¸‚¸Êj½¦ In addition to the branches ‚¢÷¸¢Æ÷¸,ÎŸ¸›¸½‚¢lÏŸ¸¸Êj½¦¨¸l¸Û¥j¦¸, audited by us, we have carried out the Assessment of design, ‚¸¸ ¢›¸{¸¸¥¸ ‚¸ ‚›¸q¸¥j¦ ‚¢lÏŸ¸¸Ê implementation and operating ¬¸½¬¸¿ ¸¿¢{¸÷¸œÏ¸¨¸{¸¸›¸Î½÷¸º„œ¸¸¸½l¸¢j¦‡ effectiveness of controls of IT l¸‡ ‚¸e¥tÛ ¢¬¸¬tŸ¸ j½¦ ¢›¸¸¿¸¸ j¦Û System used with respect to the classification of advances, ¢vq¸¸e›¸,j¦¸¸¸¥›¨¸¸›¸ ‚¸ œ¸¢o¸¸¥¸›¸ recognition of income and œÏã¸¸¨¸j¦¸¢÷¸¸j¦¸Ÿ¸»¥¸¸¿j¦›¸¢j¦¸¸Î provisioning pertaining to non – performing advances. d|Ÿ¸¸Ÿ¸¥¸½ Other Matter e›¸¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸½¿½¿Ÿ¸ÊÎŸ¸¸½¸¸¸¥¸½k¸¸œ¸Û¢¸÷¸ 5. Incorporated in these standalone financial statements are ©¸¸k¸¸‚¸Ê‚¸¢¨¸¢©¸«t‡j¦Ûj¦÷¸tÐ½q¸Û©¸¸k¸¸,¬¸¸¿¢¨¸¢{¸j¦©¸¸k¸¸ the returns of 20 branches and 1 Specialized Integrated ¥¸½k¸¸œ¸Û¸j¦¸Ê ¸¸¸ ¥¸½k¸¸œ¸Û¢¸÷¸ m¸½¥¸» ©¸¸k¸¸‚¸Ê ÷¸˜¸¸ Treasury Branch audited by us, 3045 branches audited by ¥¸½k¸¸œ¸Û¢¸÷¸¢¨¸z½©¸Û©¸¸k¸¸‚¸Êj½¦¢t›¸¥©¸¸¢Ÿ¸¥¸Îã¸¸÷¸Û¸ statutory branch auditors and 34 foreign branches audited, ¢^¸¨¸¥ ¸àj¦¸¸¸ ¸àj¦j¦¸½q¸¸Û¢z©¸¸¢›¸z½¥©¸¸Êj½¦‚›¸º³œ¸ÎŸ¸¸½¸¸¸ The branches audited by us and those audited by other auditors have been selected by the Bank in accordance ÷¸˜¸¸ ‚›¸ ¥¸½k¸¸œ¸Û¸j¦¸Ê ¸¸¸ ¥¸½k¸¸œ¸Û¢¸÷¸ ©¸¸k¸¸‚¸Ê j¦¸ o¸¸›¸ ¸àj¦ with the guidelines issued to the Bank by the Reserve ¸¸¸¢j¦¸¸q¸¸÷¸¸Î÷¸º¥¸›¸œ¸¸÷¸˜¸¸¥¸¸ã¸‚¸Î¸¢›¸k¸¸÷¸½Ÿ¸Ê Bank of India. Also incorporated in the Balance Sheet and m¸½¥¸»©¸¸k¸¸‚¸Ê‚¸¢¨¸z½©¸Û©¸¸k¸¸‚¸Êj½¦¢t›¸¥ã¸Û©¸¸¢Ÿ¸¥¸Î, the Profit and Loss Account are the returns from 2487 q¸¸½¥¸½k¸¸œ¸Û¸¸j½¦‚{¸Û›¸›¸ÎÛ¿ÎÛe›¸‚¥¸½k¸¸œ¸Û¢¸÷¸©¸¸k¸¸‚¸ÊŸ¸Ê domestic branches and 4 foreign branches which have ‚¢lÏŸ¸j¦¸œÏ¢÷¸©¸÷¸,q¸Ÿ¸¸‚¸Êj¦¸œÏ¢÷¸©¸÷¸, ¸¸q¸ not been subjected to audit. These unaudited branches account for 7.87 percent of advances, 16.32 percent ‚¸¸j¦¸œÏ¢÷¸©¸÷¸‚¸ ¸¸q¸¨¸¸j¦¸œÏ¢÷¸©¸÷¸ of deposits, 5.13 percent of interest income and 15.27 ©¸¸¢Ÿ¸¥¸Îà percent of interest expenses.

193 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Other Information d|q|j¦Û 6. The Bank’s Board of Directors is responsible for the ¸àj¦ j¦¸ ¢›¸z½©¸j¦ Ÿ¸v¥¸ ‚›¸ q¸¸›¸j¦¸Û j¦¸ „Ï¸z¸¸Û Î ‚›¸ other information. The other information comprises the q¸¸›¸j¦¸ÛŸ¸Ê¨¸¸¢«¸¥j¦¢œ¸¸½t¥Ÿ¸Ê©¸¸¢Ÿ¸¥¸q¸¸›¸j¦¸Ûj¦¸¬¸Ÿ¸¸¨¸½©¸Îœ¸ information included in the Annual report, but does not e¬¸Ÿ¸Ê¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Ê‚¸„›¸œ¸ÎŸ¸¸½¥¸½k¸¸œ¸Û¸j¦¸½¿j¦Û¢œ¸¸½t¥j¦¸ include the financial statements and our auditor’s report ¬¸Ÿ¸¸¨¸½©¸›¸ÎÛ¿Î¥¸½k¸¸œ¸Û¸j¦¸Êj¦Ûe¬¸¢œ¸¸½t¥j¦Û÷¸¸Ûk¸j½¦ ¸¸zÎŸ¸Ê thereon. The Annual Report is expected to be made available to us after the date of this auditor's report. ¨¸¸¢«¸¥j¦¢œ¸¸½t¥„œ¸¥¸ {¸j¦¸‡q¸¸›¸½j¦Û„ŸŸ¸ÛzÎ 7. Our opinion on the financial statements does not cover ¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êœ¸ÎŸ¸¸Û¸¸Ÿ¸Ê‚›¸q¸¸›¸j¦¸Û©¸¸¢Ÿ¸¥¸›¸ÎÛ¿Î the other information and we will not express any form of ‚¸ÎŸ¸e¬¸œ¸¢j¦¬¸Û÷¸Îj¦¸‚¸æ¸¸¬¸›¸›¸ÎÛ¿zÊl¸½ assurance conclusion thereon. ¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦ÛÎŸ¸¸Û¥¸½k¸¸œ¸Û¸¸j½¦¬¸¿ ¸¿{¸Ÿ¸Ê,ÎŸ¸¸Û¢q¸ŸŸ¸½z¸Û 8. In connection with our audit of the financial statements, ¸ÎÎ¢j¦„œ¸¸½Æ÷¸¢›¸{¸¸¥¢÷¸‚›¸q¸¸›¸j¦¸Ûq¸ ¸„œ¸¥¸ {¸Î¸½q¸¸‡ our responsibility is to read the other information identified above when it becomes available and, in doing so, consider ÷¸¸½„¬¸j¦¸‚{¸¸›¸j¦›¸¸‚¸‡½¬¸¸j¦÷¸½¬¸Ÿ¸¸¸Î¢¨¸o¸¸j¦›¸¸ whether the other information is materially inconsistent ¢j¦Æ¸¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj½¦¬¸¸˜¸‚›¸q¸¸›¸j¦¸Û¨¸¬÷¸º÷¸¡‚¬¸¿l¸÷¸Î with the financial statements or our knowledge obtained in ¸¸ÎŸ¸¸½¸¸¸¥¸½k¸¸œ¸Û¸¸j½¦¬¸Ÿ¸¸¸¸‚›¸˜¸¸œÏ¸œ÷¸¬¸Ÿ¸r¸¨¸¬÷¸º÷¸¡ the audit, or otherwise appears to be materially misstated. l¸¥¸÷¸œÏ÷¸Û÷¸Î¸½÷¸ÛÎ When we read the other information, if we conclude that q¸ ¸ÎŸ¸›¸½‚›¸q¸¸›¸j¦¸Ûj¦¸½œ¸cÖ¸,ÎŸ¸e¬¸¢›¸«j¦«¸¥œ¸œ¸Îº¿o¸½¢j¦„¬¸Ÿ¸Ê there is a material misstatement therein, we are required to jº¦â¨¸¬÷¸º¢›¸«u‚©¸º¢·¸¸¿Îà,ÎŸ¸Êe¬¸Ÿ¸¸Ÿ¸¥¸½j¦¸½„›ÎÊ‚¨¸l¸÷¸j¦¸›¸½j¦Û communicate the matter to those charged with governance and ‚¸¨¸©¸j¦÷¸¸Î¢q¸›ÎÊl¸¨¸›¸½ô¬¸j¦¸œÏã¸¸¢z¸¸l¸¸¸Î‚¸¥¸¸l¸»j¦¸›¸»›¸¸Ê take appropriate actions necessitated by the circumstances ‚¸ ¢¨¸¢›¸¸Ÿ¸ ÷¸˜¸¸ œ¸¢¬˜¸¢÷¸¸¸Ê j½¦ œ¸¢¸¸Ÿ¸¬¨¸³œ¸ ‚¢›¸¨¸¸¸¥ „œ¸¸ºÆ÷¸ and the applicable laws and regulations. j¦¸¥¨¸¸e¥j¦›¸½j¦Ûq¸³÷¸Î Responsibilities of Management and Those Charged With Governance for the Standalone Financial Statements tàvd|ÏÛ«ˆ½Åi}° {|il|Õˆ½Å}°ãÛ 9. The bank’s Management, Board of Directors are §Ø« j¦Û q zÎÛ responsible for the preparation of these standalone ¸àj¦j¦¸œÏ ¸¿{¸›¸‚¸¢›¸z½©¸j¦Ÿ¸v¥¸, ¸à¢j¿¦l¸¢¨¸¢›¸¸Ÿ¸‚¢{¸¢›¸¸Ÿ¸ financial statements that give a true and fair view of j¦Û{¸¸¸‚¸¬¸Ÿ¸¸¬¸Ÿ¸¸œ¸ã¸¸÷¸Û¸¢^¸¨¸¥ ¸àj¦ the state of affairs, profit and cash flow of the Bank in ‚¸ ¸Û‚¸e¥ ¸¸¸ q¸¸Û œ¸¢œ¸¸¸Ê ‡¨¸¿ ¢z©¸¸¢›¸z½¥©¸¸Ê ÷¸˜¸¸ ã¸¸÷¸ accordance with the accounting principles generally accepted in India including the Accounting Standards Ÿ¸Ê ¬¸¸Ÿ¸¸›¸÷¸¡ ¬¨¸Ûj¦¸¸¥ ¥¸½k¸¸¿j¦›¸ Ÿ¸¸›¸j¦¸Ê ¬¸¢Î÷¸ ã¸¸÷¸Û¸ ¬¸›¸zÛ specified by the Institute of Chartered Accountants ¥¸½k¸¸j¦¸¬¸¿¬˜¸¸›¸ ‚¸e¥¬¸Û‡‚¸e¥ ¸¸¸¢¨¸¢›¸¢z¥«t¥¸½k¸¸¿j¦›¸Ÿ¸¸›¸j¦¸Ê of India (ICAI) as applicable to banks, provision of q¸¬¸¸¢j¦ ¸àj¦¸Êj½¦¢¥¸‡¥¸¸l¸»Î¸½÷¸¸Î,j½¦‚›¸º³œ¸÷¸¸¸¢j¦‡l¸‡ Section 29 of the Banking Regulation Act, 1949 and e›¸ e›¸ ¬tàv‚¥¸¸½›¸ ¢¨¸Ï¸Û¸ ¢¨¸¨¸¸¸Ê, j¦¸¸¥j¦¥¸¸œ¸¸Ê ÷¸˜¸¸ ¥¸¸ã¸ ‡¨¸¿ the circulars and guidelines issued by Reserve Bank of India (“RBI”) from time to time.. This responsibility ›¸j¦zÛœÏ¨¸¸Îj¦¸¬¸ÎÛ‡¨¸¿¢›¸«œ¸¸«tj¦¸½¸œÏz¸›¸j¦÷¸½Îà,e›¸j½¦ also includes maintenance of adequate accounting ¢¥¸‡q¸¨¸¸ ¸z½ÎÎe¬¸q¸¨¸¸ ¸z½ÎÛŸ¸Ê ¸àj¦j¦Û‚¸¬÷¸¸¸Êj¦Û¬¸º¸¸ records in accordance with the provisions of the Act ÷¸˜¸¸ {¸¸½k¸¸{¸¢vÖ¸¸Ê ‚¸ ‚›¸ ¢¨¸¬¸¿l¸¢÷¸¸¸Ê j¦Û œ¸Îo¸¸›¸ ‡¨¸¿ „›¸j½¦ for safeguarding of the assets of the Bank and for ¢›¸¨¸¸¸j½¦¢¥¸‡‚¢{¸¢›¸¸Ÿ¸j½¦œÏ¸¨¸{¸¸›¸¸Êj½¦‚›¸º³œ¸œ¸¸¸¥œ÷¸¥¸½k¸¸¿j¦›¸ preventing and detecting frauds and other irregularities; selection and application of appropriate accounting ¢j¦¸¢v¸½ôj½¦¬¸¸˜¸¬¸¸˜¸„¢o¸÷¸¥¸½k¸¸¿j¦›¸›¸Û¢÷¸¸¸Êj¦¸o¸¸›¸‡¨¸¿„›¸j½¦ policies; making judgments and estimates that are „œ¸¸¸½l¸, ¢›¸¸¥¸ ¥¸½›¸½ ‚¸ ¸Î ‚›¸ºŸ¸¸›¸ ¥¸l¸¸›¸½ ¢j¦ ¸½ ¨¸¸¨¸Î¸¢j¦ reasonable and prudent; and design, implementation ‚¸¢¨¸¨¸½j¦œ¸»¸¥Î¸½÷¸˜¸¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦¸½÷¸¸¸j¦›¸½‚¸„›¸j¦Û and maintenance of adequate internal financial controls, œÏ¬÷¸º¢÷¸ ¬¸½ ¬¸¿ ¸¢{¸÷¸ ¥¸½k¸¸¿j¦›¸ ¢j¦¸¢v¸½ô j¦Û ¸º¢tÎÛ›¸÷¸¸ ‚¸ œ¸»¸¥÷¸¸ that were operating effectively for ensuring the accuracy j½¦¢¥¸‡œÏã¸¸¨¸Û³œ¸¬¸½œ¸¢o¸¸¢¥¸÷¸‚¸¿÷¸¢j¦¢›¸¸¿¸¸¸Êj¦Û¢vq¸¸e›¸, and completeness of the accounting records, relevant to the preparation and presentation of the financial j¦¸¸¸¥›¨¸¸›¸‡¨¸¿k¸k¸¸¨¸ã¸Û¬¸Ÿ¸¸¢Î÷¸Îq¸¸½¬¸÷¸‚¸¢›¸«œ¸¸ statement that give a true and fair view and are free from «tj¦¸½¸œÏz¸›¸j¦÷¸½Îà‚¸{¸¸½k¸¸{¸vÖÛ¸¸¸º¢tj½¦j¦¸¸ã¸¸¢÷¸j¦ material misstatement, whether due to fraud or error. ¢Ÿ¸˜¸¸j¦˜¸›¸¬¸½Ÿ¸ºÆ÷¸Îà 10. In preparing the standalone financial statements, ¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦¸½÷¸¸¸j¦›¸½Ÿ¸Ê ¸àj¦j¦¸œÏ ¸¿{¸›¸‚¸ management and Board of Directors are responsible for assessing the Bank’s ability to continue as a going ¢›¸z½©¸j¦Ÿ¸v¥¸j¦¸¸¥©¸Û¥¸¬¸¿¬˜¸¸j½¦³œ¸Ÿ¸Ê ¸›¸½Î›¸½j¦Û ¸àj¦j¦Û concern, disclosing, as applicable, matters related to going ¸¸½l¸÷¸¸j¦¸Ÿ¸»¥¸¸¿j¦›¸j¦›¸½,j¦¸¸¥©¸Û¥¸¬¸¿¬˜¸¸¬¸½¬¸¿ ¸¿¢{¸÷¸¢¨¸«¸¸¸Ê

194 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

j½¦¸˜¸¸¥¸¸l¸»œÏj¦tÛj¦¸j¦›¸½,¥¸½k¸¸¿j¦›¸j½¦¢¥¸‡j¦¸¸¥©¸Û¥¸¬¸¿¬˜¸¸ concern and using the going concern basis of accounting ‚¸{¸¸j¦¸„œ¸¸¸½l¸j¦›¸½j½¦¢¥¸‡q¸¨¸¸ ¸z½ÎÎq¸ ¸÷¸j¦¢j¦œÏ ¸¿{¸›¸j¦¸ unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but e¸z¸ ¸àj¦ j¦¸½ ¢¥¸Æ¨¸v½t j¦›¸½ ¸¸ œ¸¢o¸¸¥¸›¸ ¬¸Ÿ¸¸œ÷¸ j¦›¸½ j¦Û ›¸ Î¸½ to do so. The Board of Directors is also responsible for ¸¸‡½¬¸¸›¸j¦›¸½j½¦¢¥¸‡j¦¸½e¥¨¸¸¬÷¸¢¨¸j¦¢¨¸j¦¥œ¸›¸Î¸½ overseeing the Bank’s financial reporting process. tàvd| ÏÛ « j¦Û k}Û ˆ½Å i Auditor’s responsibilities for the audit of the Standalone k}Ûj¦«j¦ÛqzÛ Financial Statements ÎŸ¸¸¸„Ó½©¸¸Îã¸¸½¬¸¸¢z¥¸¸›¸¸Î¢j¦¬¸Ÿ¸lÏ¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸ 11. Our objectives are to obtain reasonable assurance ¢¨¸¨¸¸¸ÊŸ¸Ê{¸¸½k¸¸{¸vÖÛ‚¸¸º¢tj½¦j¦¸¸j¦¸½e¥¢Ÿ¸˜¸¸j¦˜¸›¸›¸Î¸½ about whether the standalone financial statements as ‚¸‡½¬¸Û¥¸½k¸¸œ¸Û¸¸¢œ¸¸½t¥q¸¸ÛÎ¸½¢q¸¬¸Ÿ¸ÊÎŸ¸¸Û¸¸©¸¸¢Ÿ¸¥¸ a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that Î¸½„¢o¸÷¸ã¸¸½¬¸¸‡j¦„oo¸¬÷¸j¦¸ã¸¸½¬¸¸Î¸½÷¸¸Î¥¸½¢j¦›¸¸Îj¦¸½e¥ includes our opinion. Reasonable assurance is a high l¸¸¿tÛ›¸ÎÛ¿Î¢j¦¥¸½k¸¸¿j¦›¸Ÿ¸¸›¸j¦¸Êj½¦‚›¸º³œ¸j¦Ûl¸e¥¥¸½k¸¸œ¸Û¸¸ level of assurance, but is not a guarantee that an audit Ÿ¸Êœ¸Î¥¸½¬¸½Ÿ¸¸q¸»zã¸¸¢÷¸j¦¢Ÿ¸˜¸¸j¦˜¸›¸j¦ÛÎŸ¸½©¸¸œ¸Îo¸¸›¸Î¸½q¸¸‡ conducted in accordance with the SAs will always detect {¸¸½k¸¸{¸vÖÛ‚¸¸º¢tj½¦j¦¸¸¢Ÿ¸˜¸¸j¦˜¸›¸«tl¸¸½o¸Î¸½÷¸¸Î‚¸ a material misstatement when it exists. Misstatements e¬¸½ã¸¸¢÷¸j¦÷¸ ¸Ÿ¸¸›¸¸q¸¸‡l¸¸q¸ ¸¸Î¬¸¿ã¸¸¨¸›¸¸Î¸½¢j¦¸Î‚j½¦¥¸½¸¸ can arise from fraud or error and are considered material ¬¸Ÿ¸lÏ³œ¸¬¸½e›¸¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj½¦‚¸{¸¸œ¸¢¥¸‡l¸‡ if, individually or in the aggregate, they could reasonably ‚¸¢˜¸¥j¦¢›¸¸¥¸¸Êj¦¸½œÏã¸¸¢¨¸÷¸j¦¬¸j¦÷¸¸Î be expected to influence the economic decisions of users taken on the basis of these standalone financial ¥¸½k¸¸¿j¦›¸Ÿ¸¸›¸j¦¸Êj½¦‚›¸º³œ¸¥¸½k¸¸œ¸Û¸¸j½¦‡j¦ã¸¸l¸j½¦³œ¸Ÿ¸ÊÎŸ¸œ¸½©¸½¨¸ statements. ¢›¸¸¥¸¥¸½÷¸½Îà‚¸œ¸»Û¥¸½k¸¸œ¸Û¸¸j½¦z¸¸›¸œ¸½©¸½¨¸¬¸¿©¸¸¨¸¸zj¦¸½ As part of an audit in accordance with the SAs, we exercise ¸›¸¸‡k¸÷¸½ÎàÎŸ¸¸Îã¸Ûj¦Î÷¸½Îà¢j¦¡ professional judgment and maintain professional scepticism j¦ ¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¢¸¸¸ÊŸ¸Ê{¸¸½k¸¸{¸vÖÛ‚¸¸º¢tj½¦j¦¸¸„÷œ¸››¸ throughout the audit. We also: Îº‡ã¸¸¢÷¸j¦¢Ÿ¸˜¸¸j¦˜¸›¸j¦Ûœ¸Îo¸¸›¸‚¸Ÿ¸»¥¸¸¿j¦›¸,„›¸q¸¸½¢k¸Ÿ¸¸Êj½¦ a. Identify and assess the risks of material misstatement ¢¥¸‡„Ï¸z¸¸ÛœÏ¢¨¦¸¸‚¸Êj¦Û¢vq¸¸e›¸‚¸j¦¸¸¥¢›¸«œ¸¸z›¸÷¸˜¸¸ÎŸ¸¸Û of the standalone financial statements, whether due ¸¸j¦¸½„¢o¸÷¸‚¸{¸¸œÏz¸›¸j¦›¸½j½¦¢¥¸‡¥¸½k¸¸œ¸Û¸¸¬¸¸¸œÏ¸œ÷¸ to fraud or error, design and perform audit procedures j¦›¸¸{¸¸½k¸¸{¸vÖÛj½¦j¦¸¸„÷œ¸››¸Îº‡ã¸¸¢÷¸j¦¢Ÿ¸˜¸¸j¦˜¸›¸¸Êj¦¸½›¸ responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis œ¸Îo¸¸›¸›¸½j¦¸q¸¸½¢k¸Ÿ¸¸º¢tj½¦j¦¸¸„÷œ¸››¸Îº‡q¸¸½¢k¸Ÿ¸¬¸½q¸¸z¸ for our opinion. The risk of not detecting a material ¸vÖ¸ Î, Æ¸¸Ê¢j¦ {¸¸½k¸¸{¸vÖÛ Ÿ¸Ê ¬¸¸¿ul¸¸¿u, q¸¸›¸ ¸ºr¸j¦ â¸½vÖÛ l¸¸Û misstatement resulting from fraud is higher than for ¸º¢t¸¸£,l¸¥¸÷¸ ¸¸¸›¸Û¸¸‚¸¿÷¸¢j¦¢›¸¸¿¸¸¸Êj¦¸„¥¥¸¿‹¸›¸©¸¸¢Ÿ¸¥¸Î¸½ one resulting from error, as fraud may involve collusion, ¬¸j¦÷¸¸Î forgery, intentional omissions, misrepresentations, or k¸¥¸½k¸¸œ¸Û¸¸ ¬¸½ ¬¸¿ ¸¿¢{¸÷¸ ‚¸¿÷¸¢j¦ ¢›¸¸¿¸¸¸Ê œ¸ ¢¨¸o¸¸ j¦›¸¸, the override of internal control. ¥¸½k¸¸œ¸Û¸¸ œÏ¢¨¦¸¸‚¸Ê j¦¸½ e¬¸ ÷¸Î ¬¸½ ¢vq¸¸e›¸ j¦›¸¸ q¸¸½ „›¸ b. Obtain an understanding of internal control relevant œ¸¢¬˜¸¢÷¸¸¸Êj½¦¢¥¸‡„¢o¸÷¸Î¸½¥¸½¢j¦›¸¸Î¸¸¨¸Æ÷¸j¦›¸½j½¦¢¥¸‡ to the audit in order to design audit procedures that ›¸ÎÛ¿Î¢j¦Æ¸¸j¿¦œ¸›¸Û›¸½¢¨¸Ï¸Û¸¢œ¸¸½¢tôl¸j½¦gœ¸œ¸¸¸¥œ÷¸‚¸¿÷¸¢j¦ are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the ¢¨¸Ï¸Û¸ ¢›¸¸¿¸¸ k¸¸ Î ¢j¦ ›¸ÎÛ¿ ÷¸˜¸¸ e¬¸ ÷¸Î j¦Û ‚¸¿÷¸¢j¦ ¢›¸¸¿¸¸ Company has in place an adequate internal financial j¦ÛœÏã¸¸¨¸©¸Û¥¸÷¸¸¢j¦÷¸›¸ÛÎ control system over financial reporting and the l¸ œÏ ¸¿{¸›¸¸¸¸„œ¸¸¸½l¸Ÿ¸Ê¥¸¸e¥l¸e¥¥¸½k¸¸¿j¦›¸›¸Û¢÷¸¸¸Êj¦Û¬¸¢tj¦÷¸¸‚¸ operating effectiveness of such controls. ¥¸½k¸¸¿j¦›¸ ‚›¸ºŸ¸¸›¸¸Ê ‡¨¸¿ „¬¸¬¸½ ¬¸¿ ¸¿¢{¸÷¸ œÏj¦tÛj¦¸¸Ê j¦¸ Ÿ¸»¥¸¸¿j¦›¸ c. Evaluate the appropriateness of accounting policies j¦›¸¸ used and the reasonableness of accounting estimates ‹¸ œÏ ¸¿{¸›¸j½¦j¦¸¸¥©¸Û¥¸¬¸¿¬˜¸¸j½¦³œ¸Ÿ¸Ê ¸›¸½Î›¸½¬¸¿ ¸¿{¸Û¥¸½k¸¸¿j¦›¸‚¸{¸¸ and related disclosures made by management. j¦¸½„œ¸¸¸½l¸j¦›¸½j½¦‚¸¢o¸÷¸j¦¸¢›¸œ¸t¸›¸‚¸œÏ¸œ÷¸¥¸½k¸¸œ¸Û¸¸ d. Conclude on the appropriateness of management’s ¬¸¸¸¸Êj½¦‚¸{¸¸œ¸e¬¸j¦¸œ¸÷¸¸¥¸l¸¸›¸¸¢j¦Æ¸¸„›¸‹¸t›¸¸‚¸Ê¬¸½ use of the going concern basis of accounting and, based on the audit evidence obtained, whether ¬¸¿ ¸¿¢{¸÷¸ã¸¸¢÷¸j¦‚¢›¸¢ä¸÷¸÷¸¸Ÿ¸¸q¸»zÎ¸¸¨¸¬¸Ûœ¸¢¬˜¸¢÷¸¸¸£ ¸›¸Û a material uncertainty exists related to events or Î¢q¸¬¸Ÿ¸Êj¦¸¸¥©¸Û¥¸¬¸¿¬˜¸¸j½¦³œ¸Ÿ¸Ê ¸›¸½Î›¸½j¦Û ¸àj¦j¦Û¸¸½l¸÷¸¸ conditions that may cast significant doubt on the œ¸¬¸¸˜¸¥j¦¬¸¿z½Î¨¸Æ÷¸¢j¦¸¸q¸¸¬¸j½¦¸¢zÎŸ¸¢›¸«j¦«¸¥¢›¸j¦¸¥¸Ê Bank’s ability to continue as a going concern. If we ¢j¦ã¸¸¢÷¸j¦‚¢›¸¢ä¸÷¸÷¸¸j¦Û¬¸¿ã¸¸¨¸›¸¸Î÷¸¸½ÎŸ¸½¿ÎŸ¸¸Û¥¸½k¸¸œ¸Û¸¸ conclude that a material uncertainty exists, we are ¢œ¸¸½t¥Ÿ¸Ê¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¢¸¸¸Ê¬¸½¬¸¿ ¸¿¢{¸÷¸e¬¸÷¸Îj½¦ required to draw attention in our auditor’s report to

195 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

œÏj¦tÛj¦¸¸Êj¦Û‚¸½{¸¸›¸‚¸j¦¢«¸¥÷¸j¦¸›¸½j¦Û‚¨¸©¸j¦÷¸¸Î¸¸e¬¸ the related disclosures in the standalone financial ÷¸Îj½¦œÏj¦tÛj¦¸ÎŸ¸¸Û¸¸j¦¸½ ¸z¥¸›¸½j½¦¢¥¸‡œ¸¸¸¥œ÷¸›¸ÎÛ¿Î statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based ÎŸ¸¸¸¢›¸«j¦«¸¥¥¸½k¸¸œ¸Û¸¸j¦Û÷¸¸Ûk¸÷¸j¦œÏ¸œ÷¸¥¸½k¸¸œ¸Û¸¸¬¸¸¸¸Ê on the audit evidence obtained up to the date of our j½¦‚¸{¸¸œ¸‚¸{¸¸¢÷¸Î÷¸˜¸¸¢œ¸,ã¸¢¨¸«¸j¦Û‹¸t›¸¸‡£¸¸œ¸¢¬˜¸¸¸£ auditor’s report. However, future events or conditions ¸àj¦j½¦j¦¸¸¥©¸Û¥¸¬¸¿¬˜¸¸j½¦³œ¸Ÿ¸Êœ¸¢o¸¸¥¸›¸j¦¸½ ¸¿zj¦›¸½j¦¸j¦¸¸ may cause the Bank to cease to continue as a going ¸›¸¬¸j¦÷¸ÛÎà concern. n œÏj¦tÛj¦¸¬¸¢Î÷¸¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦Û¬¸Ÿ¸lÏœÏ¬÷¸º¢÷¸, e. Evaluate the overall presentation, structure and content ¬¸¿o¸›¸¸‡¨¸¿¢¨¸«¸¸¨¸¬÷¸ºj¦¸÷¸˜¸¸e¬¸ ¸¸÷¸j¦¸Ÿ¸»¥¸¸¿j¦›¸j¦›¸¸¢j¦ of the standalone financial statements, including the disclosures, and whether the standalone financial Æ¸¸¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸ÊŸ¸Ê ¸º¢›¸¸¸zÛ¥¸½›¸z½›¸‚¸‹¸t›¸¸‚¸Ê statements represent the underlying transactions and j¦¸½e¬¸÷¸Ûj½¦¬¸½œÏ¬÷¸º÷¸¢j¦¸¸l¸¸¸Î¢j¦e¬¸j¦Û¢›¸«œ¸¸œÏ¬÷¸º¢÷¸œÏ¸œ÷¸ events in a manner that achieves fair presentation. j¦Ûq¸¸¬¸j½¦ We communicate with those charged with governance ÎŸ¸‚›¸ ¸¸÷¸¸Êj½¦¬¸¸˜¸¬¸¸˜¸¥¸½k¸¸œ¸Û¸¸j¦Û¸¸½q¸›¸¸ ¸·¢¨¸¬÷¸¸‡¨¸¿ regarding, among other matters, the planned scope and „¬¸j½¦¬¸Ÿ¸¸j¦¸¢›¸{¸¸¥¸¢q¸¬¸Ÿ¸Ê‚¸¿÷¸¢j¦¢›¸¸¿¸¸Ÿ¸ÊŸ¸Î÷¨¸œ¸»¸¥j¦¸½e¥ timing of the audit and significant audit findings, including j¦¢Ÿ¸¸¸¿¬¸¢Î÷¸Ÿ¸Î÷¨¸œ¸»¸¥¥¸½k¸¸œ¸Û¸¸¢›¸«j¦«¸¸½ô,¢q¸¬¸j¦Û¥¸½k¸¸œ¸Û¸¸j½¦ any significant deficiencies in internal control that we identify z¸¸›¸ÎŸ¸›¸½œ¸Îo¸¸›¸j¦ÛÎ,j½¦¬¸¿ ¸¿{¸Ÿ¸Êl¸¨¸›¸½ô¬¸j½¦¢¥¸‡œÏã¸¸¢÷¸¨¸¢Æ÷¸¸¸Ê during our audit. j½¦ ¸¸½Ÿ¸Ê¬¸»¢o¸÷¸j¦÷¸½Îà We also provide those charged with governance with a statement that we have complied with relevant ethical ÎŸ¸l¸¨¸›¸½ô¬¸j½¦œÏã¸¸Û¨¸¢Æ÷¸¸¸Êj¦¸½¸Î ¸÷¸¸÷¸½Îà¢j¦ÎŸ¸›¸½¬¨¸÷¸¿¸¸¬¸½ requirements regarding independence, and to communicate ¬¸¿ ¸¿¢{¸÷¸›¸¢÷¸j¦‚¸¨¸©¸j¦÷¸¸‚¸Ê‚¸e›¸j½¦¬¸¸˜¸ÎŸ¸¸Û¬¨¸÷¸¿¸¸,‚¸ with them all relationships and other matters that may q¸Î¸¿ã¸Û¥¸¸l¸»Î¸½,¬¸¸¨¸{¸¸¢›¸¸¸Ê¬¸½¬¸¿ ¸¿¢{¸÷¸¢¨¸«¸¸¸Ê‚¸‚›¸Ÿ¸¸Ÿ¸¥¸¸Êq¸¸½ reasonably be thought to bear on our independence, and ÷¸¸¢j¥¦j¦³œ¸¬¸½¢¨¸o¸¸Ÿ¸Ê¥¸¸¸½q¸¸¬¸j¦÷¸½Îàj¦¸‚›¸ºœ¸¸¥¸›¸¢j¦¸¸Î where applicable, related safeguards. l¸¨¸›¸½ô¬¸j½¦œÏã¸¸Û¨¸¢Æ÷¸¸¸Êj¦¸½¬¸»¢o¸÷¸¢¨¸«¸¸¸Ê¬¸½ÎŸ¸„›¸¢¨¸«¸¸¸Êj¦¸ From the matters communicated with those charged with governance, we determine those matters that were of most ¢›¸{¸¸¥¸j¦÷¸½Îàq¸¸½¨¸÷¸¥Ÿ¸¸›¸‚¨¸¢{¸j½¦¬tàv‚¥¸¸½›¸¢¨¸Ï¸Û¸¢¨¸¨¸¸¸Êj¦Û significance in the audit of the standalone financial statements ¥¸½k¸¸œ¸Û¸¸Ÿ¸Ê‚÷¸¿÷¸Ÿ¸Î÷¨¸œ¸»¸¥Îà‚¸q¸¸½Ÿ¸Î÷¨¸œ¸»¸¥¥¸½k¸¸œ¸Û¸¸¢¨¸«¸¸ of the current period and are therefore the key audit matters. ÎàÎŸ¸‚œ¸›¸Û¥¸½k¸¸œ¸Û¸¸¢œ¸¸½t¥Ÿ¸Êe›¸¢¨¸«¸¸¸Êj¦¸¨¸¸¥›¸j¦÷¸½Îàq¸ ¸ We describe these matters in our auditor’s report unless law ÷¸j¦¢j¦j¦¸›¸»›¸¸¸¢¨¸¢›¸¸Ÿ¸›¸e›¸j½¦¬¸¸¨¸¥q¸¢›¸j¦œÏj¦tÛj¦¸œ¸¸½j¦›¸ or regulation precludes public disclosure about the matter or ¥¸l¸¸÷¸½Î¸Ê¸¸‡j¦zŸ¸¢¨¸œ¸Û÷¸œ¸¢¬˜¸¢÷¸¸¸ÊŸ¸Êq¸ ¸ÎŸ¸¸Î¢›¸¸¥¸¥¸½÷¸½ when, in extremely rare circumstances, we determine that a Îà¢j¦¸Î¢¨¸«¸¸ÎŸ¸¸Û¢œ¸¸½t¥Ÿ¸Ê›¸ÎÛ¿zÛq¸¸›¸Ûo¸¸¢Î‡Æ¸¸Ê¢j¦‡½¬¸¸j¦›¸½ matter should not be communicated in our report because the adverse consequences of doing so would reasonably j¦¸¢¨¸œ¸Û÷¸œ¸¢¸¸Ÿ¸Î¸½l¸¸‚¸e¬¸÷¸Îj¦Û¬¸»o¸›¸¸¬¸½¬¸¸¨¸¥q¸¢›¸j¦¢Î÷¸ be expected to outweigh the public interest benefits of such j½¦œÏã¸¸¢¨¸÷¸Î¸½›¸½j¦Û¬¸¿ã¸¸¨¸›¸¸Î¸½÷¸ÛÎ communication. d|j¦||Û|j¦dj¦Ød«œ¸£}t¥ Report on other legal and regulatory requirements ÷¸º¥¸›¸œ¸¸‚¸¥¸¸ã¸Î¸›¸Ûk¸¸÷¸¸ ¸à¢j¿¦l¸¢¨¸¢›¸¸Ÿ¸›¸‚¢{¸¢›¸¸Ÿ¸, 12. The Balance Sheet and the profit and loss account have j¦Û {¸¸¸ j½¦ œÏ¸¨¸{¸¸›¸¸Ê ‚¸ ‚¸e¥¬¸Û‡‚¸e¥ ¸¸¸q¸¸Û ¥¸½k¸¸¿j¦›¸ been drawn up in accordance with the provisions of Ÿ¸¸›¸j¦¸Êj½¦‚›¸º¬¸¸z©¸¸¥‡£l¸‡Îà¡ Section 29 of the Banking Regulation Act, 1949 and as per the Accounting Standards issued by ICAI: ¸àj¦j¦¸Ûj¿¦œ¸›¸Û „œ¸¨¦Ÿ¸¸Êj¦¸‚q¸¥›¸‡¨¸¿‚¿÷¸¸ ‚¢{¸¢›¸¸Ÿ¸, 13. As required by the Banking Companies (Acquisition and ¸¸¸‚œ¸½¢¸÷¸‚›¸º¬¸¸ÎŸ¸¢œ¸¸½t¥j¦÷¸½Îà¢j¦ Transfer of Undertakings) Act, 1970, we report that; j¦ ÎŸ¸›¸½¬¸ã¸Û¬¸»o¸›¸¸‚¸Ê‡¨¸¿¨¸¸k¸¸‚¸Êj¦¸½‚œ¸›¸Û¬¸¨¸¸½¥Ï¸Ÿ¸q¸¸›¸j¦¸Û (a) We have obtained all the information and explanations ‚¸¢¨¸æ¸¸¬¸Ÿ¸ÊœÏ¸œ÷¸¢j¦¸¸Îq¸¸½¢j¦ÎŸ¸¸Û¥¸½k¸¸œ¸Û¸¸j½¦¢¥¸¸½ which to the best of our knowledge and belief, were ‚¸¨¸©¸j¦˜¸½‚¸ÎŸ¸›¸½„›ÎÊ¬¸¿÷¸¸½«¸q¸›¸j¦œ¸¸¸¸Î necessary for the purposes of our audit and have found them to be satisfactory; k¸ ÎŸ¸¸Ûq¸¸›¸j¦¸ÛŸ¸Ê‚¸‡ ¸àj¦j½¦¬¸¿¨¸¨¸Î¸ ¸àj¦j¦Û©¸¢Æ÷¸¸¸Êj½¦ ÷¸Î÷¸Îà‚¸ (b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and l¸ ¸àj¦j½¦j¦¸¸¸¥¥¸¸¸Ê‚¸©¸¸k¸¸‚¸Ê¬¸½œÏ¸œ÷¸¢t›¸¥¥¸½k¸¸œ¸Û¸¸j½¦ (c) The returns received from the offices and branches of „Ó½©¸¬¸½œ¸¸¸¥œ÷¸œ¸¸e¥l¸e¥Îà the Bank have been found adequate for the purposes of our audit;

196 þ¨¸î¸ú¡¸ ¹¨¸¨¸£μ¸ Financial Statement

Îdl}t¥j¦ØÎàj¦¡ 14. We further report that: (a) in our opinion, proper books of account as required by j¦ ÎÛ « àj¦ j¦ } j¦|| j¦ d| d}Ø foØ law have been kept by the Bank so far as it appears k Î£Îàdf| Î«j¦ÛÎÛq oÎ}ØoØÎ from our examination of those books and proper j¦f|kd«qj¦zÎ||ÎÛ j¦ÎfoØt|¥ returns adequate for the purposes of our audit have been received from branches not visited by us. }°}Øj¦Ûle¥ÎàqÎÛk}Ûj¦f´}¥}ØÎà (b) The Balance Sheet and Profit and Loss account and k e}t¥«fkØØ|}ãi Î|kØd|j¦zÛ Cash flow statements dealt with by this report are in }°Îk j¦|i t|¥ Î«j¦d|Îà agreement with the books of account and returns; (c) The reports on the accounts of the branch offices l àj ¦l||d{|j¦Û{j¦d Øl¥Ø àj¦j¦ audited by branch auditors of the Bank under section kk}Ûj¦«¸Î«k}ÛØkj¦¥j¦ 29 of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in k j¦|}}t¥ãqÛle¥ÎdÎ}t¥Øj¦|j¦i preparing this report; and Î|fj¦foØd{|j¦Îd (d) In our opinion, the Balance Sheet, the Profit and Loss m ÎÛ«Ø|}ãi Î|kØd|j¦zÛ}°Î Account and the Statement of Cash Flows comply with the applicable accounting standards, to the extent ^¥ àj¦¸}°ØØk j¦||ÛØ«ã|||ÎÛ they are not inconsistent with the accounting policies Î|j¦ÛÛØj¦lk j¦||j¦«j¦d|Îà prescribed by RBI.

AUDITORS k}Ûj¦ j¦Øj§Üi¡Üii~Ü j¦Ø¡mÜi¡j¡§ j¦ØqÜij§~v×i¡j¡§ j¦Øid v}vi¡j¡§ii~Ü |zÛkj¦ |zÛkj¦ |zÛkj¦ |zÛkj¦ iÜ¦di|¡v v iÜ¦di|¡e¥ iÜ¦di|v iÜ¦di|i|i| For .DO\DQLZDOOD 0LVWU\//3 For 6LQJKL &R For *0.DSDGLD &R For 65'LQRGLD &R//3 Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants FRN:104607W / W100166 FRN : 302049E FRN : 104767W FRN : 001478N / N500005

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Üe¦dÜiÝ§d~±Üj§ &(2&)2&HUWLÀFDWLRQ |zj¦ v Board of Directors, Bank of Baroda àj¦d¢Ü×¦ vÖz Mumbai e¥ }°Îz Dear Sirs, 5H &(2&)2 &HUWLÀFDWLRQ IRU WKH TXDUWHUIXOO \HDU ¢o¦j§~ÙÙÏÜ¡~¦¦j§iÜe¦d st ÜiÝ§d~±Üj§ ended 31 0DUFK Pursuant to Regulation 17(8) read with Regulation 33 of SEBI Û oÛ ·ØzØi }°j¦tÛj¦ |j¦Û{ (Listing Obligations & Disclosure Requirement) Regulations, j¦y}uØ{j¦Ûd|}|}ÎiØz¤¸}°Øj¦Ø 2015, we hereby certify that: Îàj¦ D :HKDYHUHYLHZHGÀQDQFLDOVWDWHPHQWVIRUWKHTXDUWHU i Î|o¥j¦}ØØÎÛ }¥¥j¦iÏÛ full year ended 31st March, 2019 and that to the best of j¦Û Û j¦Û Î Øy ÎÛ d{j¦Ø q|j¦Û i our knowledge and belief: Çj¦d|¡ i. These statements do not contain any materially L e|« « j¦e¥ lØ dØ dãj¦y| |ÎÛ Î dy untrue statement or omit any material fact or contain j¦e¥lØØyâ}|ÎÛ lÎdye|«j¦e¥ã°j¦ statements that might be misleading: dãj¦y||ÎÛ j¦lÎ ii. These statements together present a true and fair view of the Bank’s affairs and are in compliance with existing LL dãj¦y| àj¦ j¦ j¦¥j¦}« j¦ ÎÛ i }t accounting standards, applicable laws and regulations. tj¦}°ØØj¦ØÎàØyµ|k|j¦«l|« b. There are, to the best of our knowledge and belief, no i |«j¦d|}Îà transactions entered into by the Bank during the year Û ÎÛq|j¦Ûi Çj¦d|¥j¦z| àj¦¸i which are fraudulent, illegal or violative of the Bank’s j¦e¥ Î|ÎÛ j¦lq{k{vÖÛ«}ØÎ«lj¦||Û code of conduct. Îdy àj¦j¦Ûdo ÎØj¦·Î c. We accept responsibility for establishing and PDLQWDLQLQJLQWHUQDOFRQWUROVIRUÀQDQFLDOUHSRUWLQJDQG Û ÎÏÛ}tÕl ·d Øj¦| «j¦}¥zØ that we have evaluated the effectiveness of internal Ûj¦ j¦Ø Îà Î Î ãÛ Ûj¦ j¦Ø Îà j¦ Î| ÏÛ FRQWURO V\VWHPV RI WKH %DQN SHUWDLQLQJ WR ÀQDQFLDO }tÕl j¦Û d Øj¦ | }°Û j¦Û }°ãÛØ j¦ reporting and we have disclosed to the auditors and the j¦|dj¦|j¦ÎØyÎ|k}Ûj¦«dk $XGLW&RPPLWWHHGHÀFLHQFLHVLQWKHGHVLJQRURSHUDWLRQ Øj¦d Øj¦| «j¦}o|i } · of such internal controls, if any, of which we are aware j¦«zj¦e¥ÎdyqÎdã|«Îi Î|e|Î« and the steps we have taken or propose to take to zj¦|j¦qf}j¦Îà}°ØØÎàj¦Ûq|j¦Ûz UHFWLI\WKHVHGHÀFLHQFLHV zÛÎ d. We have indicated to the Auditors and the Audit vÛ Î|k}Ûj¦« Øy k}Û Ø j¦ ||kØ Committee. dlØj¦Î L 6LJQLÀFDQW FKDQJHV LQ LQWHUQDO FRQWURO RYHU ÀQDQFLDO reporting during the year. L d{j¦ z| ÏÛ }tÕl j¦ zã¥ « d Øj¦ | y«ÎØ}¥}Ø¥| LL 6LJQLÀFDQW FKDQJHV LQ DFFRXQWLQJ SROLFLHV GXULQJ WKH year and that the same have been disclosed in the LL ¥j¦z|k|ÛØ««ÎØ}¥}Ø¥|Øye|j¦fk QRWHVWRWKHÀQDQFLDOVWDWHPHQWVDQG ÏÛÛj¦Ût}} j¦zlÎd LLL ,QVWDQFHV RI VLJQLÀFDQW IUDXG RI ZKLFK ZH KDYH LLL ÎÛq|j¦Û«d{k{vÖÛ {ÛtØyf|« become aware and the involvement therein, if any, of }° |{| dy j¦Û j¦¥oÛ j¦Û }ØØ qj¦Û d Øj¦ WKHPDQDJHPHQWRUDQHPSOR\HHKDYLQJDVLJQLÀFDQW UROHLQWKH%DQN·VLQWHUQDOFRQWUROV\VWHPRYHUÀQDQFLDO | }°Û {ÛÏÛ}tÕl«dÎãj¦Î reporting.

qÜ ~Üiqj§ }°k j¦¢}¥tkdj¦{| }° {|zj¦i ¤kj¦¥}j¦d{j¦Û *5DPHVK P S JAYAKUMAR i Ûi}ád Head (Corporate Accounts & Managing Director & CEO Taxation) and CFO

z| j¦¡ Date :22.05.2019 y|¡ e¥ Place : Mumbai

199 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

o¦j§j§ÙÙ}~ &RQVROLGDWHG%DODQFH6KHHWDVRQst0DUFK (` in 000's) d}oÜ o¦j§ o¦j§ 6&+('8/( As on As on 31st0DUFK 31st0DUFK ~¡qÜd {Ùi¡ &$3,7$/ /,$%,/,7,(6 } qÛ Capital 1 530,36,44 d t|ÎØ Ødz| Share Application Money Pending 1A - Allotment dØ|{ dd{ Reserves & Surplus 2 46035,86,85 |tÛe|tt Minority Interest 2A 272,52,41 q Deposits 3 607451,36,48 f{Ûle¥ Borrowings 4 64859,81,70 d|zØi i }°{| Other Liabilities & Provisions 5 28654,97,98 j¦ T O T A L 747804,91,86

dÙ¡ $66(76 ãØÛ^¥ àj¦j¦} Cash and balances with Reserve 6 24034,98,85 |j¦zÛdj¦ Bank of India àj¦«j¦}j¦Øy li Balances with Banks and Money at 7 73387,75,77 d}o|}}°Øz Call and Short Notice | Investments 8 175137,22,81 hi dl° Loans & Advances 9 437941,25,97 dodØ Fixed Assets 10 5532,28,12 d|dØ Other Assets 11 31771,40,34 j¦|}lv Goodwill on Consolidation - j¦ T O T A L 747804,91,86 dj¦j¦zØi Contingent Liabilities 12 299023,38,31 Ûj¦i Bills for Collection 45859,43,99 ÎØ}¥k|ÛØ 6LJQLÀFDQW$FFRXQWLQJ3ROLFLHV 18 k«}t}} Notes on Accounts 19

g}z¥ÛlÛd|o Ø|}j¦ij¦dã||ãlÎà 7KH6FKHGXOHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKH%DODQFH6KHHW

200 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

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DIRECTORS AUDITORS 'U+DVPXNK$GKLD 36-D\DNXPDU 'HEDVLVK3DQGD For .DO\DQLZDOOD 0LVWU\//3 For 6LQJKL &R Chairman Managing Director & CEO Director Chartered Accountants Chartered Accountants FRN:104607W / W100166 FRN : 302049E 3DSLD6HQJXSWD $MD\.XPDU *RSDO.ULVKDQ$JDUZDO &$'DUDLXV=)UDVHU &$5DMLY6LQJKL Executive Director Director Director Partner Partner M No. 042454 M No. 053518 6KDQWL/DO-DLQ %KDUDWNXPDU''DQJDU Executive Director Director For *0.DSDGLD &R For 65'LQRGLD &R//3 Chartered Accountants Chartered Accountants 9LNUDPDGLW\D6LQJK 6ULQLYDVDQ6ULGKDU FRN : 104767W FRN : 001478N / N500005 .KLFKL Director Executive Director &$$WXO6KDK &$6DQGHHS'LQRGLD *5DPHVK Partner Partner General Manager and CFO M No. 039569 M No. 083689 Corp. A/cs & Taxation Place: Mumbai Date: 22nd May 2019 201 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

j§ÙÙ}~j§Üd}o¡ 6FKHGXOHVWR&RQVROLGDWHG%DODQFH6KHHW (` in 000's) o¦j§ o¦j§ As on 31st0DUFK As on 31st0DUFK d|oÛ} qÛ 6&+('8/(&$3,7$/ }°{j¦Ø} qÛ AUTHORISED CAPITAL }°Ø`j¦ (1,500,00,00,000 Shares of ` 2/- each) }â¥}°Ø`j¦ (previous year 1,500,00,00,000 Shares of ` 2/- each) 3000,00,00 3000,00,00 |l¥ØØydãzÏ ISSUED AND SUBSCRIBED CAPITAL } qÛ }°Ø`j¦ 265,91,83,632 Equity Shares of `2/- each e§tÛ }â¥}°Ø`j¦ (previous year 265,91,83,632 shares of `. 2/- each) 531,83,67 531,83,67 lÛlÛ} qÛi }°zÏ} qÛ CALLED-UP & PAID-UP CAPITAL }°Ø`j¦e§tÛ 264,55,16,132 (previous year 264,55,16,132) Equity Shares }â¥ of `2 each including q«j¦|®j¦¸ 167,34,59,020 Equity Shares {Øj¦`j¦vÖj¦Û (previous year 169,38,47,146 Shares) j¦e§tÛ amounting to ` 335.69 crores }â¥ Îà held by Central Government 529,10,32 529,10,32 qvÖ«¡q Øj¦ili Add : Forfeited Shares 1,26,12 1,26,12 ˆºÅ¥¸ TOTAL

d}oÜi 6&+('8/($ d t| j¦ÛÎiÛdz| Share Application Money {|Û Pending Allotment ** 5042,00,00 - 5042,00,00 - d t| j¦ÛÎidz|j¦Û{|zo¥j¦ãØj¦}°}Ødz|j¦ÛÎ ** Share application money pending allotment represents application received from Government of India on 28th March 2019.

d}oÜ 6&+('8/( d Ù}|¡d d| 5(6(59(6 6853/86 , {j¦dØ|{ I Statutory Reserves d ãj¦ Opening Balance 9671,61,47 9636,26,99 qvÖ¡ãi Î|kØ Add: Transfer from P&L d ØØ Accounts 142,15,70 32,06,07 qvÖ« mti ¡¥j¦z| Add /(Less): Adjustments q| during the year (12,35,26) 9801,41,91 3,28,41 9671,61,47

202 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

(` in 000's) o¦j§ o¦j§ As on 31st0DUFK As on 31st0DUFK ,, i } qÛlØ}°Ø|{ II a) Capital Reserves `j¦vÖj¦ including Revaluation Reserve of Rs. 4544.23 }|¥ j¦|q¥j¦ crores (previous years j¦ØÎi }â¥ Rs. 3186.28crores) `j¦vÖ d ãj¦ Opening Balance 4552,51,04 4946,05,22 qvÖ«¡ãi Î| Add: Transfer from P&L Accounts kØd ØØ 210,36,34 -- qvÖ mti ¡¥j¦z| Add /(Less): Adjustments during the year q| 1342,69,88 6105,57,26 (393,54,18) 4552,51,04 Û j¦|}} qÛlØ b) Capital Reserve on Consolidation dØ|{

}° ãj¦ Opening Balance 73,91,78 79,31,04 qvÖ mti ¡¥j¦z| Add /(Less): Adjustments during the year q| 14,47,79 88,39,57 (5,39,26) 73,91,78 ,,, }°Û III Share Premium

}° ãj¦ Opening Balance 16092,93,80 10786,20,93 qvÖ« mti ¡¥j¦z| Add /(Less): Adjustments during the year q| 39,61,66 16132,55,46 5306,72,87 16092,93,80 ,9 qi d|}°Ø|{ IV Revenue and other Reserves i { YLLL j¦ØÎØ a) Special Reserves u/s 36 (1) (viii) }°Ø|{

}° ãj¦ Opening Balance 4788,88,32 4787,30,53 qvÖ«¡ãi Î|kØ Add: Transfer from P&L Accounts d Ø 183,56,14 4972,44,46 15,779 4788,88,32

Û }°Ø¦} Ø b) Translation Reserve 2298,39,40 1908,81,61 Û |dØ|{kØ c) Investment Reserve Account

}° ãj¦ Opening Balance 130,46,31 130,46,31 ãÎ|q|kØ Transferred from P&L Appropriation A/c d Ø (88,87,98) 41,58,33 - 130,46,31 vÛ | {ÛfØoc d) ,QYHVWPHQWÁXFWXDWLRQ reserve }°Ø|{Û

}° ãj¦ Opening Balance - - }{¥|d¥{j¦z| Additions during the period 21,57,83 21,57,83 - -

203 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` in 000's) o¦j§ o¦j§ As on 31st0DUFK As on 31st0DUFK e¥ q¦dØ|{ e) Revenue Reserves

}° ãj¦ Opening Balance 7874,46,34 9757,57,93 qvÖ«¡ãdÎ|kØ Add: Transfer from P&L Accounts d Ø 463,82,89 (2115,01,47) qvÖ« mti ¡¥j¦z| Add: Additions/ Adjustments during the }{¥|q| year 514,11,88 8852,41,11 231,89,88 7874,46,34 9 ãi Î|kØ« V %DODQFHLQ3URÀW /RVV Account 1109,40,23 942,26,18 j§~± Ù}|¡d 7RWDO5HVHUYHV 6XUSOXV ,WR9 d| ,9 d|oÛie|tÛ SCHEDULE - 2A- Minority e|tt Interest }° ãj¦ Opening Balance 272,52,41 232,52,79 qvÖ« mti ¡¥j¦z| Add /(Less): Adjustments during the year q| 68,84,07 341,36,48 39,99,62 272,52,41 j§e} tÜe}t t Total Minority Interest d|oÛq SCHEDULE - 3 DEPOSITS i , lq A. I Demand Deposits L àj¦« i) From Banks 1038,36,39 1204,09,99 LL d| ii) From Others 47191,73,86 48230,10,25 46048,56,08 47252,66,07 ,, oØ àj¦q II Savings Bank Deposits 182120,07,01 169167,74,08 ,,, ÛzÛq III Term Deposits L àj¦« i) From Banks 54133,20,65 35015,32,59 LL d| ii) From Others 381105,30,63 435238,51,28 356015,63,74 391030,96,33 j§× ,,,, 727$/ ,WR,,, Û , ãØ«yØkd«j¦Û B. I Deposits of branches in India q 525142,70,64 474182,85,76 ,, ãØ ÎyØkd« II Deposits of branches outside India j¦Ûq 140445,97,90 133268,50,72 j§ ,d ,, 727$/ , ,, d|oÛ SCHEDULE - 4 f{ÛlÛ BORROWINGS , ãØ«f{ÛlÛ I Borrowings in India L ãØÛ^¥ àj¦ i) Reserve Bank of India 27500,00,00 265,290,000 LL d| àj¦ ii) Other Banks 7119,11,31 7688,04,77 LLL d| y|diq« iii) Other Institutions and 7930,18,45 6097,21,27 Agencies LY e|t}}odvt iv) Innovative Perpetual 5961,50,00 6261,70,00 Debt Instruments (IPDI) e|tÒ t de¥}ÛvÛde¥

204 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

(` in 000's) o¦j§ o¦j§ As on 31st0DUFK As on 31st0DUFK Y v|t ¢|v¤ v) Subordinated Bonds 6456,50,00 54967,29,76 6000,00,00 52575,96,04 ,, ãØj¦ Îf{ II. Borrowings outside India 13900,23,41 12283,85,66 j§ ,i¡,, 727$/ , ,, g},i ,,«q|ØÛ Secured Borrowings included in I & II above f{ 34033,72,25 3782,19,86 d|oÛ SCHEDULE - 5 OTHER LIABILITIES AND d|zØi i }°{| PROVISIONS , z I Bills Payable 1926,69,02 2042,82,73 ,, f}oØ q II Interest Accrued 3848,10,45 3447,34,35 ,,, d Øj¦¥q| III ,QWHURIÀFH$GMXVWPHQWV 1083,12,54 568,34,45 ,9 dylØj¦zØi IV Deferred Tax Liabilities 2,43,67 8,96,52 9 |j¦dl°«j¦}tdj¦j¦ V Contingent Provision against Standard Advances }°{| 3221,00,81 3194,64,27 9, d| }°{|«ÎØ VI Others(including provisions) 19796,87,78 19392,85,66 j§× ,9, 727$/ ,WR9, d|oÛ SCHEDULE - 6 CASH AND BALANCES |j¦zÛdãØÛ^¥ àj¦j¦ WITH RESERVE BANK OF } INDIA , Îy«|j¦zÛ zÛ®|t« I Cash in hand (including foreign currency notes) ÎØ 3458,94,12 3149,37,98 ,, ãØÛ^¥ àj¦j¦|®Û àj¦j¦ II Balances with Reserve Bank of India/ Central Bank : } L okØ« i) in Current Account 24295,86,04 20428,63,76 LL d|kØ«« ii) in Other Accounts 470,54,44 24766,40,48 456,97,11 20885,60,87 j§× ,d ,, 727$/ , ,, d|oÛ SCHEDULE - 7 BALANCES WITH BANKS àj¦«j¦}Øy l AND MONEY AT CALL & i d}o|}z SHORT NOTICE I ä Ù¬ I In India L àj¦«j¦} i) Balances with Banks i okØ«« a) in Current Accounts 121,31,71 269,06,36 Û d|qkØ«« b) in Other Deposit Accounts 6800,07,95 6921,39,66 7252,84,39 7521,90,75 LL l}i d}o|} ii) Money at call and short notice }°Øz i àj¦«j¦} a) with Banks 11,21,37 4900,00,00 Û d| y|«j¦} b) with Other institutions 111,95,40 123,16,77 210,00,00 5110,00,00 j§ Ld LL 727$/ LDQGLL II ä ÙÏ II 2XWVLGH,QGLD L okØ«« i) in Current Accounts 26795,68,83 19916,25,22

205 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` in 000's) o¦j§ o¦j§ As on 31st0DUFK As on 31st0DUFK LL d|qkØ«« ii) in Other Deposit Accounts 24980,21,57 28912,80,55 LLL li d}o|} iii) Money at Call and Short Notice }°Øz 10839,02,54 11926,79,25 j¦ LLLdLLL TOTAL (i, ii and iii) 62614,92,94 60755,85,02 j§l ,d ,, *5$1'727$/ ,DQG,, d|oÛ SCHEDULE - 8 | INVESTMENTS , ãØ«||«| I Investments in India in L j¦Û}°ØãØ i) Govt Securities 161675,54,35 143541,44,18 LL d|d|zØ}°ØãØ ii) Other Approved Secu- rities 3549,60,00 2862,08,54

LLL iii) Shares 3371,57,87 2688,78,67 LY v «oi v iv) Debentures and Bonds 8537,58,67 8715,47,29 Y ÎlÛej¦e««| v) Investment in Associates 917,19,20 869,86,72 YL d| vi) Others 2116,92,62 3731,77,98 j§ LYL 727$/ LWRYL ,, ãØ Î| II Investments Outside India in L j¦Û}°ØãØ y|Û i) Govt Securities (incl. Local authorities) }°{j¦«ÎØ 9780,80,58 8543,48,11 LL ÎlÛej¦e««| ii) Investment in Associates 100,76,21 98,62,53 LLL d| iii) Others 5666,24,54 4085,68,79 j§ LLLL 727$/ LWRLLL ¡~¦l ,i¡,, *5$1'727$/ , ,, , ãØ«| I Investments in India |«j¦j¦ Gross value of Investments 181844,75,10 163916,23,43 mti ¡¾ÎØ}°{|«j¦ Less : Aggregate of Provisions for Depreciation qvÖ 1676,32,39 1506,80,05 ãØ || Net Investments in India 180168,42,71 162409,43,38 ,, ãØ Î| II Investments outside India |«j¦j¦ Gross value of Investments 15844,61,68 13073,66,52 mti ¡¾ÎØ}°{|«j¦ Less : Aggregate of Provisions for Depreciation qvÖ 296,80,35 345,87,09 {¡}} 1HW,QYHVWPHQWVRXWVLGH j§ ,,, 727$/ ,WR,,

206 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

(` in 000's) o¦j§ o¦j§ As on 31st0DUFK As on 31st0DUFK d|oÛdl° SCHEDULE - 9 ADVANCES A. i) Bills Purchased and i L kÛzdã|ili Discounted 26401,00,29 45203,33,73 ii) Cash Credits, Overdrafts LL |j¦zhdvÐªtd and Loans Repayable on l}oj¦ØÛlh Demand 207942,41,37 195905,47,59 iii) Term Loans LLL ÛzÛh 249871,39,41 196832,44,65 7RWDO LWRLLL j§ LLLL B. i) Secured by Tangible Û L Ø¥dØ«¸ Ø Assets(Includes ÎÛhj¦iq«dl°« advances against book debts) ÎØ 378702,90,92 306691,13,21 ii) Covered by Bank/ LL j¦«j¦Ûl t«¸ Government Guarantees Ø 40958,73,55 53046,81,27 iii) Unsecured LLL lq|ØÛ 64553,16,60 78203,31,49 7RWDO LWRLLL j§ LLLL Û , ãØ«dl° C. I Advances in India i) Priority Sector L }°yj¦Ø}°}Ø 131745,66,13 114716,94,07 ii) Public Sector LL ¥q|j¦ 37024,95,21 32840,10,26 iii) Banks LLL àj¦ 226,96,12 1169,04,83 iv) Others LY d| 207127,13,56 376124,71,02 180350,34,02 329076,43,18 ,, ãØ Îdl° II Advances Outside India i) Due from Banks L àj¦«}°} 31227,97,25 48738,50,65 LL d|}°} ii) Due from Others a) Bills purchased & i kÛzlidã|ili Discounted 4206,54,37 5227,18,26 b) Syndicated Loans ÛÎh 32404,64,99 19543,93,63 c) Others Ûd| 40250,93,44 108090,10,05 35355,20,25 108864,82,79 7RWDO &,&,, j§ Ü,Ü,, d|oÛ SCHEDULE - 10 dodØ FIXED ASSETS , } I Premises lØ¥j¦o¥j¦lØ} At cost as on 31st March of the preceding year 6438,07,22 6387,39,51 ¥j¦z|}{¥|q| Additions/Adjustments during the year 2064,96,96 126,91,83

8503,04,18 6514,31,34 ¥j¦z|j¦tØ Deductions/adjustments during the year q| 125,45,18 76,24,44

207 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` in 000's) o¦j§ o¦j§ As on 31st0DUFK As on 31st0DUFK

}|¥ØÎØ (Includes revalued amount) 8377,59,00 6438,06,90

dµØ|ØÛkj¦¾ Depreciation to date 2557,11,33 5820,47,67 2192,32,00 4245,74,90 II d|dodØ Ü¦|Û¥oi II Other Fixed Assets (including Furniture & Fixtures) : Ü¦§oÎØ lØ¥j¦o¥j¦ÛlØ} At cost as on 31st March of the preceding year 5356,52,14 4930,99,37 ¥j¦z|}{¥|q| Additions/Adjustments during the year 601,06,47 486,13,81

5957,58,61 5417,13,18

¥j¦z|j¦tØ Deductions during the year 111,70,75 67,47,70

5845,87,86 5349,65,48

dµØ|ØÛkØj¦¾ Depreciation to date 4522,64,77 1323,23,09 4063,12,26 1286,53,22 j§ ,i¡,, 727$/ ,DQG,, d|oÛ SCHEDULE - 11 OTHER ASSETS d|dØ , f}oØ q I Interest Accrued 6256,60,90 8134,52,78 ,, dl°j¦ãlØ|ÉØ} II Tax paid in advance/tax j¦j¦tØÛ }°{|«j¦ deducted at source(net of Provisions) | 5993,52,00 2131,19,28 ,,, t|Ûi t} III Stationery and Stamps 5,98,78 8,90,31 ,9 dylØj¦dØ IV Deferred Tax assets 7446,55,17 6352,26,28 9 d| V Others 14785,77,01 15144,51,69 j§ ,9 727$/ ,WR9 d|oÛ SCHEDULE - 12 CONTINGENT LIABILITIES dj¦j¦zØi , zq|Î«h|ÎÛ |l I Claims not acknowledged as debts 2926,65,87 219,41,39 ,, d j¦oj¦Ø|«j¦i II Liability for partly paid Investments zØ 16,61,53 200,98,12 ,,, j¦z| zd« III Liability on account of outstanding forward j¦j¦zØ exchange contracts 260944,53,20 170835,49,12 ,9 mtj¦«j¦ÛdzÛlÛ IV Guarantees given on behalf of constituents : l t j¦ ãØ« a) In India 26644,09,37 29686,02,15

k ãØ Î b) Outside India 4609,69,86 31253,79,23 10607,79,62 40293,81,77

208 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

(` in 000's) o¦j§ o¦j§ As on 31st0DUFK As on 31st0DUFK 9 Ûj¦Ø } j¦|dd| V Acceptances, Endorsements and Other Obligations {Øi 22759,69,18 21617,39,69 9, dj¦j¦zØj¦Ûd|z« VI Other items of contingent liability 63642,20,31 65856,28,22

j§ ,9, 727$/ ,WR9,

(` in 000's) o¦j§ o¦j§

209 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

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210 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement d}oÜo¦j§~Ù¦j§ij§ÙÐÜ ~¡j§ÜÏÙ~¦k¡j§}}ÜÙ¡¡ 6&+('8/(6,*1,),&$17$&&2817,1*32/,&,(6217+(&2162/,'$7(' ),1$1&,$/67$7(0(176)257+(<($5(1'('670$5&+

j§ÙÐÜ ~¡j§Ù j§ }j§d| %$6,6 2) 35(3$5$7,21 2) &2162/,'$7(' ),1$1&,$/67$7(0(176 Ù j§ }j§d| ¢ %$6,62)35(3$5$7,21 àj¦ ej¦Ûd| l« §Øfµ«dÎlÛej¦e« Consolidated Financial Statements (CFS) of the Bank j¦j¦ØÏÛ} ÛiÜ¦i }}lØlØj¦ (Parent), its subsidiaries, joint ventures and associates are drawn up on historical cost basis and conform in all d{} |iliÎàdãÛØj¦}Îd«j¦ zã¥« material aspects to statutory provisions and practices ãØ j¦Û kd«j¦¥« j¦ « ãØ « d zÛ SUHYDLOLQJLQ,QGLDLQUHVSHFWRI,QGLDQRIÀFHVEUDQFKHV kd«j¦¥«j¦« ·z«}°oØ {j¦ and respective foreign countries in respect of foreign }°{|« i {d« j¦ d| } Îà q Øj¦ j¦ j¦e¥ d|y RIÀFHVEUDQFKHVXQOHVVRWKHUZLVHVWDWHG fk|j¦lÎ 86(2)(67,0$7(6 7KH SUHSDUDWLRQ RI ÀQDQFLDO VWDWHPHQWV UHTXLUHV WKH d}}¬j§f~l¢ management to make estimates and assumptions ÏÛ} j¦Øj¦|«ÏÛ}j¦ÛØÛk considered in the reported amount of assets and liabilities (including contingent liabilities) as of date j¦}t¥j¦Ûle¥dØi zØd« dj¦j¦zØd«ÎØ RI WKH ÀQDQFLDO VWDWHPHQWV DQG WKH UHSRUWHG LQFRPH Øy}t¥j¦Ûle¥d{ÎØdi {Ûj¦}t¥ and expenses for the reporting period. Management j¦|ÎØ}° {|j¦j¦âd||«ddj¦|«j¦d{ || believes that the estimates used in the preparation of }vÖØÎ}° {|j¦ÇÎj¦ÏÛ} j¦Ø WKHÀQDQFLDOVWDWHPHQWVDUHSUXGHQWDQGUHDVRQDEOH j¦|j¦i}°§Ødj¦|j¦}¥dfoØÎà &2162/,'$7,21352&('85( 2.1 CFS of the group (comprising of -18- Subsidiaries, -4- j§}~±©§¢ Associates and -3- Joint Ventures) have been prepared Îj¦ j¦Ø ÏÛ } q d| l on the basis of : ÎlÛej¦e«Øy §Øfµ j¦Î ||kØ a. Audited accounts of Bank of Baroda (Parent). j¦d{}Øj¦iliÎà¡ b. Line by line aggregation of each item of asset/ liability/income/expense of the subsidiaries i àj¦d¢Ü×¦ vÖz j¦k}ÛØkØ with the respective item of the Parent, and after Û d| l«j¦Û dØzØd j¦Û }°Øj¦ z j¦ eliminating all material intra-group balances / yj¦Û {Øzj¦y z¡ij¦Ûj¦ WUDQVDFWLRQVXQUHDOLVHGSURÀWORVVDVSHU$6 (Consolidated Financial Statements) issued by ØyãØÛ|zÛkj¦ y| de¥Ûide¥ ¸ the Institute of Chartered Accountants of India qÛk j¦||j¦ ii j¦ØÏÛÛ (ICAI). }j¦j¦d|ãÛe|tÐl°}« Î«d c. Investments in Associates are accounted |j¦iliãÎ|j¦j¦j¦ØÎi for under the Equity Method as per AS 23 (Accounting for Investments in Associates in Û ÎlÛ yd««|j¦k j¦|k}ÛØÏÛ Consolidated Financial Statements) issued by } j¦d{}de¥Ûide¥¸qÛiij¦ ICAI based on the audited Financial Statements d|¦} j¦ØÏÛÛ Î · y |ÎØ of the associates. k j¦| e§tÛ}°Ûj¦ØÎØj¦lÎ d. Interests in Joint Ventures are consolidated on ‘Proportionate consolidation method’ as vÛ §Øfµ«« qj¦de¥Ûide¥¸qÛii prescribed in AS 27 (Financial Reporting of §Øfµ qj¦ÛÏÛ}¥t l «|{¥Ø Interests in Joint Ventures) issued by ICAI. CC|}Øj¦j¦|}°Û }j¦Øj¦lÎ 2.2 In case of difference in Accounting Policies, the k j¦||ÛØ««d|ØÎ|j¦ÛyØ«d| l« §Øfµ Financial Statements of Subsidiaries, Joint ventures i ÎlÛej¦e«j¦ÏÛ} j¦qÎ j¦ÎÛ dj¦ and Associates are adjusted, wherever necessary and practicable, to conform to the Accounting Policies of ØyÎj¦Î yj¦Ûk|ÛØ«j¦d|¦}qØ the Parent. j¦lÎ 2.3 Nainital Bank, one of the Subsidiary of the Bank is àj¦j¦Ûij¦d| lÛj ¦}|Û||ÛØ àj¦j¦Ûk j¦||ÛØi|}Ûi having difference accounting policy from the parent j¦}°{|i|}ÛikØ««Û {Ûdj¦k j¦|dz company on certain parameters related to provision

211 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

{Øj¦â|z vÖ«j¦ {«j ¦}|Ûã||Îj¦Ø on NPA, accounting of income related to recovery in ÏÛ««j¦e¥q||ÎÛ j¦lÎ§«j¦ej¦ NPA accounts etc. No adjustment has been made in WKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWVDVFDOFXODWLQJWKH }° {|j¦zkØÎiej¦}°ãj¦Ûl|j¦|Îj¦|ÎÛ impact is not practicable, in view of the management, Îdej¦j¦e¥}°ã|ÎÛ }vÖØ the impact of the same is not material j¦Ø ÏÛ } j¦ e|tÛ e|tt « 2.4 Minority interest in the CFS consists of the share of the d| l«j¦Û|e§tÛã«e|tÛ{j¦«j¦d PLQRULW\ VKDUHKROGHUV LQ WKH QHW HTXLW\ SURÀW RI WKH ÎØÎà subsidiaries. 2.5 The difference between cost to the Parent of its initial y¸ej¦Ûd| l««j¦ili|j¦ÛlØd investment in the subsidiaries and the Parent’s portion d| l««e§tÛ« yj¦Îj¦ÛlØd Øj¦ RI WKH HTXLW\ RI WKH VXEVLGLDULHV LV UHFRJQL]HG DV kdØ} qÛqãÛÎj¦ }«|lÎ goodwill/ capital reserve as the case may be. } ,19(670(176 } ,QYHVWPHQWV àj¦j¦¸|«j¦i|}t|ØÛkjd{} } The Bank is following uniform methodology of accounting for investments on settlement date basis. k}°Ûj¦d|j¦qÎÎ àj¦j¦|«j¦ &ODVVLÀFDWLRQDQGYDOXDWLRQRIWKH%DQN·VLQYHVWPHQWV lÛ¥j¦ d j¦| d Ûde¥ j¦ }} vÛ Ûd | are carried out in accordance with RBI Circular DBR. Û}Û ÛÛ z| j¦ qe¥ j¦ No. BP. BC.6/21.04.141/2015-16 dated July 1, 2015. d|j¦lÎ &ODVVLÀFDWLRQ lÜ¦j§ D %DVLVRIFODVVLÀFDWLRQ i lÛ¥j¦j¦d{ In compliance with the Reserve Bank of India y Øy ej¦Û d| l« « j¦i li | guidelines, the investment portfolio of the Bank is }t¥Ü¦j×¦ãØÛq¥ j¦ jz|z¥| FODVVLÀHGLQWR lÛj¦Øj¦lÎà i) “Held to Maturity” (HTM) comprising Investments acquired with the intention to i) CC}}§ØØj¦{Ø iotÛi |« hold them till maturity. «}}§ØØj¦k|j¦f´}°}Ø| ii) “Held for Trading” (HFT) comprising Îà Investments acquired with the intention to ii) CC}ÎØ{Ø ioi}átÛ «| trade. Securities that are held principally Îàq|Î«}j¦f´}°}Øj¦lÎiÛ for resale within 90 days from the date RI SXUFKDVH DUH FODVVLÀHG XQGHU WKH +)7 }°ØãØ qkÛzj¦ÛØÛkz| j¦ãÛØ category. ¨¦ÛÎØkÛle¥Î f|Î ioiÜ¦tÛÞÛj¦d Øl¥Ø iii) “Available for Sale” (AFS) comprising lÛ¥j¦Øj¦lÎ Investments not covered by (a) and (b) iii) CC ¨¦ÛÎØf} { iiÜ¦i «| above i.e. those which are acquired neither Îàqf}§ØCCi ØyCC Û «|ÎÛ Îà for trading purposes nor for being held till dy¥Ø¤q|Ø}j¦f´}°}Øj¦ili maturity. Îàd|ÎÛ}}§ØØj¦k|j¦f´}°}Ø For the purpose of disclosure in the balance sheet, j¦iliÎà LQYHVWPHQWV DUH FODVVLÀHG DV GLVFORVHG LQ 6FKHGXOH 8 (‘Investments’) under six groups (a) government Ø|}«}°j¦tÛj¦j¦f´|«j¦d|oÛ C| securities (b) other approved securities (c) shares «â¡Î« i j¦Û}°ØãØ Û d|d|zØ}°ØãØ (d) bonds and debentures (e) subsidiaries and joint Û vÛ ¢ vi v «o e¥ d| l i §Øfµd ventures and (f) others. iÜ¦ d|j¦d Øl¥Øy}°j¦tj¦}«lÛ¥j¦Øj¦lÎ b. Acquisition Cost Ûd{l°ÎlØ Cost such as brokerage pertaining to investments, paid at the time of acquisition and |« {Ø °j¦qdzj¦ÛlØqj¦dq¥| EURNHQSHULRGLQWHUHVWDUHFKDUJHGWRWKHSURÀW j¦ãlØ|j¦lÎd °j¦|d{j¦ q & loss account as per the RBI guidelines. ãØÛ^¥ àj¦j¦z|z¥«j¦d|ãÎ| c) Transfer between categories kØ«}°ãØj¦lÎ 5HFODVVLÀFDWLRQ RI LQYHVWPHQWV IURP RQH Û «j¦ Ûod Ø category to the other, if done, is in accordance with RBI guidelines. Transfer of scrip from AFS ij¦ÛzÛÛ«|«j¦}|¡lÛ¥j¦zj¦e¥ / HFT category to HTM category is made at the j¦lÎØÎãØÛ^¥ àj¦j¦z|z¥«j¦d|

212 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

j¦lÎiiÜ¦iioiÜ¦tÛÛiotÛiÛ« lower of book value or market value. In the case ¨¦}j¦d Ø||Ø ÎÛ q}j¦l of transfer of securities from HTM to AFS / HFT category, the investments held under HTM at a ÎiotÛiiiÜ¦iioiÜ¦tÛÛ«}°ØãØ«j¦d Ø discount are transferred to AFS / HFT category at j¦«iotÛij¦d Øl¥Ø t¤t}}kli|«j¦ the acquisition price and investments placed in iiÜ¦iioiÜ¦tÛÛ«dq¥|}d ØØj¦l the HTM category at a premium are transferred ÎdiotÛiÛ«}°Û}k|«j¦iiÜ¦i WR$)6+)7DWWKHDPRUWL]HGFRVW ioiÜ¦tÛ«}{ØlØ}d ØØj¦lÎ Transfer of investments from AFS to HFT or vice- iiÜ×¦iioiÜ×¦tÛ«ioiÜ×¦tÛiiÜ×¦i«|«j¦ a-versa is done at the book value. Depreciation d Ø ÎÛ}j¦qØÎeØÎj¦|«}l carried, if any, on such investments is also j¦Û¾zj¦e¥ÎØfãÛij¦ÛzÛÛ transferred from one category to another. «d ØØj¦qØÎ The transfer of a security between these categories is accounted for at the acquisition cost ¤ e|«j¦ Ûo}°ØãØ«j¦d Øj¦Ûl|d Øj¦Û / book value / market value on the date of transfer, ØÛkj¦fj¦Ûd{l°ÎlØ ÎÛ q« whichever is the least, and the depreciation, if qãÛj¦Î}j¦Ûle¥Îdid Øj¦}á} any, on such transfer is fully provided for. ¾zj¦e¥Îj¦i}°{|j¦lÎ 9DOXDWLRQ ¡j§} ,QYHVWPHQWVFODVVLÀHGDV´+HOGWR0DWXULW\µDUHFDUULHG CC}}§ØØj¦{Ø j¦ }«lÛ¥j¦Ø|«j¦ãØdØ at weighted average acquisition cost unless it is more dq¥ØlØ}lÎq Øj¦j¦Îd j¦Ø than the face value, in which case the premium d{j¦|ÎÛ Îàq«}°Ûj¦}}§Øj¦Ûd{Øj¦ LV DPRUWL]HG RYHU WKH SHULRG UHPDLQLQJ WR PDWXULW\ $PRUWL]DWLRQ H[SHQVH RI SUHPLXP RQ LQYHVWPHQWV }{Øj¦lÎiotÛiÛ«|«}}°Ûj¦ in the HTM category is deducted from interest }{Ûj¦ {Ûko¥j¦d Ûde¥j¦}}vÛd Û| income in accordance with RBI Circular DBR. No.BP. Û}Û ÛÛ z| j¦ qe¥ j¦ BC.6/21.04.141/2015-16 dated July 1, 2015. d|j¦d| qdmtlÎ ,QYHVWPHQWV FODVVLÀHG DV ´+HOG WR 0DWXULW\µ LQFOXGHV CC}}§ØØj¦{Ø j¦ }«lÛ¥j¦Ø|««iv «o v¤ debentures / bonds which are deemed to be in the Îàq|Î«¦}}°j¦Øj¦Ûtdl°|qØÎ q|j¦ nature of / treated as advances (for which provision is i dl°« } l dØ lÛ¥j¦ d }°{|Ûj¦ {Û made by applying the Reserve Bank of India prudential ãØÛ^¥ àj¦j¦j¦}¥|z vlj¦ØÎi}°{|j¦ QRUPV RI DVVHWV FODVVLÀFDWLRQ DQG SURYLVLRQLQJ lÎ applicable to Advances). Investments in Regional Rural Banks, Treasury Bills, Û l°Û j¦ tÐ^Û « j¦¢¥ }}¥ d q &RPPHUFLDO3DSHUVDQG&HUWLÀFDWHVRI'HSRVLWZKLFK }°} «j¦ili|«j¦klØd{} j¦| have been valued at carrying cost. j¦lÎ 3DVVWKURXJK&HUWLÀFDWHVSXUFKDVHGIRUSULRULW\VHFWRU }°yj¦Ø }°}Ø j¦Û h dj¦Ød« ÎØ kÛz li lending requirements are valued at Book Value in t¥Ü¦j¦t«j¦{}d Ûde¥j¦z|z¥«j¦d| accordance with RBI guidelines. ÎÛ} j¦Øj¦iliÎà Investments in subsidiaries, joint ventures and §Øfµ«Øyd| l«« ãØØyzz|«« dyÛ associates (both in India and abroad) are valued at }°j¦j¦|«j¦âvÖj¦|«j¦ j¦|Âj¦ acquisition cost less diminution, other than temporary mtj¦d{l°ÎlØ}j¦qØÎ in nature. j¦}ÅØ¤ y¸qk} qÛ|{ ÛÛiÜ¦ j¦Û Bank’s investments in units of Venture Capital Funds 9&)V PDGH DIWHU DUH FODVVLÀHG XQGHU e¥j¦e««j¦ili|j¦dãj¦ØÛ|Õj¦i}}§Ø HTM category for initial period of three years and are Øj¦{Øj¦ØÎØÛ«lÛ¥j¦Øj¦qØÎØyj¦ÛØj¦ valued at cost. After period of three years from date of d{} j¦|j¦qØÎ Øj¦ØÛ|Õj¦}ÅØ¤e|Î« disbursement, it will be shifted to AFS category. These ãØÛ^¥ àj¦j¦z|z¥«j¦d|iiÜ¦iØyj¤¥¦v are valued using Net Assets Value shown by VCF as tj¥¦t«d ØØj¦qilãØÛ^¥ àj¦j¦z|z¥« SHU WKH ÀQDQFLDO VWDWHPHQWV RU GHFODUHG 1$9 DV SHU j¦d|ÏÛ«j¦d|ÛÛiÜ¦¸z¥ili Reserve Bank of India guidelines. If NAV/ audited |dØmØi|iÛj¦}°lj¦ j¦Øj¦ili ÀQDQFLDOV DUH QRW DYDLODEOH IRU PRUH WKDQ PRQWKV ÎàzlØÎd{j¦j¦i|iÛk}ÛØÏÛ continuously then at Re. 1/- per VCF ` ,QYHVWPHQWVFDWHJRUL]HGXQGHU$)6DQG+)7FDWHJRULHV d j¦vÖf} {|Î«Ø }°ØÛÛiÜ¦ are Marked-to-Market (MTM) on a periodical basis as iiÜ¦idioiÜ¦tÛ«j¦d Øl¥ØlÛ¥j¦Ø|ãØÛ per relevant RBI guidelines. Net depreciation, if any, ^¥ àj¦j¦z|z¥«j¦d|d{j¦d{}§v¥t LQ WKH FDWHJRU\ XQGHU WKH FODVVLÀFDWLRQ PHQWLRQHG LQ 6FKHGXOH ¶,QYHVWPHQWV· LV UHFRJQL]HG LQ WKH SURÀW j¥¦t itÛi Îàd|oÛ C| «fkØlÛ¥j¦

213 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

j¦d Øl¥ØÛ«zj¦e¥|¾ÎØfãÎ| and loss account. The net appreciation, if any, in the kØ«d j¦Øj¦lÎ||q|}°Øj¦lÛ¥j¦ FDWHJRU\ XQGHU HDFK FODVVLÀFDWLRQ LV LJQRUHG H[FHSW to the extent of depreciation previously provided. The Û « z j¦e¥ Î j¦ d|zk j¦ qØ Î dldl book value of individual securities is not changed }°ØãØ«j¦ ÎÛ|«j¦d{j¦ j¦|j¦j¦ consequent to periodic valuation of investments. |ÎÛ zØÎ Investments received in lieu of restructured advances }|ÕoØdl°q|j¦ z«}°}Ø|j¦ j¦|^¥ scheme are valued in accordance with RBI guidelines. àj¦j¦z|z¥«j¦d|}j¦qØÎe||«j¦« Any diminution in value on these investments is provided «j¦ÛØÎj¦Ûj¦Ûj¦f} {j¦qildeeÛ for and is not used to set off against appreciation in respect of other performing securities in that category. Ûj¦ØÎØdq¥j¦}°ØãØ«j¦ {«|q|j¦j×¦ Depreciation on equity shares acquired and held by the |{¥Ø|ÎÛ j¦qil}|ÕoØq|j¦ØÎØ àj¦¸ Bank under restructuring scheme is provided as per d{l°ÎØ d {Ø e§t } ¾ ^¥ àj¦ j¦ RBI guidelines. z|z¥«j¦d|f} {j¦qil At the end of each reporting period, security receipts }°Øj¦}tÕld{j¦Û}Ø}dØ}|Õo|j ¦}|« issued by the asset reconstruction company are ¸qÛ}°ØãØÛzj¦ j¦|^¥ àj¦¸ikØ« valued in accordance with the guidelines applicable to such instruments, prescribed by RBI from time to j¦ i }°ØØ l z|z¥« j¦ d| j¦ qil WLPH$FFRUGLQJO\LQFDVHVZKHUHWKHFDVKÁRZVIURP Øz|i««qÎ dØ}|Õo|j ¦}|Û¸qÛ security receipts issued by the asset reconstruction }°ØãØÛz|j¦zÛ}°Îj¦ {Øq|j¦ØÎØkØ FRPSDQ\ DUH OLPLWHG WR WKH DFWXDO UHDOL]DWLRQ RI WKH j¦ |zØ ÏÛ dØ« j¦ Øj¦ }°} « Øj¦ ÀQDQFLDO DVVHWV DVVLJQHG WR WKH LQVWUXPHQWV LQ WKH ÛØj¦qØÎØ àj¦}°Øj¦}tÕlj¦ÛØÛkj¦e concerned scheme, the Bank reckons the net asset ØÎj¦kØ«j¦ j¦|j¦idØ}|Õo|j ¦}|Û value obtained from the asset reconstruction company from time to time, for valuation of such investments at }}°}Ø|dØ«j¦Ûl|j¦ld}° each reporting date. In case of investment in Security j¦ej¦ z}°ØãØÛz«j¦ili|q àj¦ Receipts on or after April 1, 2017 which are backed by ¸qz oliz l°ØdØ«¸y¥Ø more than 50% of the stressed assets sold by the bank, Îj¦«d|j¦i}°{|dØ}|Õo|j ¦}|Û provision for depreciation in value is made at higher dÛ d }°ØãØj¦ j ¦}|Û iÛ ¸ mØ | of – provisioning rate required in terms of net assets dØj¦|z v«j¦d|d}Ø}°{|zd{j¦ value declared by Reconstruction Company (RC)/ 6HFXULWL]DWLRQ &RPSDQ\ 6& RU WKH SURYLVLRQLQJ UDWH Îlhj¦ilqzdØlÛ¥j¦i }°{| DVSHUWKHH[WDQWDVVHWFODVVLÀFDWLRQDQGSURYLVLRQLQJ |z vj¦d|Îldi|qilj¦ àj¦j¦Û ÎÛ norms as applicable to the underlying loans, assuming «hd||Ø¡qÛÎl}°ØãØÛz«d|ãÛ|« that the loan notionally continue in the books of the j¦ j¦|qÛj¦Ø¥dÛiÛ}°}Øi|iÛj¦d| Bank. All other investments in the Security Receipts are j¦qØÎ valued as per the NAV obtained from issuing RC / SC. itt e|t«t tÐt de¥de¥tÛ e|Ý¦tÐ§o Investment in listed instruments of Real Estate Investment Trust (REIT) / Infrastructure Investment e|t«ttÐt e|t j¦oÛ ·kØ««|d{j¦ 7UXVW ,19,7 LVYDOXHGDWFORVLQJSULFHRQDUHFRJQL]HG «j¦Û|Ø}°}Øt¢j¦i§o«q«}|}ÎØ stock exchange with the higher volumes. In case the Îz j¦|j¦ÛØÛkz|«j¦ãÛØj¦ÛãÛt¢j¦ instruments were not traded on any stock exchange i§o«q}e|j¦¨¦¨¦|ÎÛ ÎØÎØf|j¦ j¦| within 15 days prior to date of valuation, valuation is j¦j¦¸|{¥Ø|Û|Øi|iÛ q¥}|Û|Î done based on the latest NAV (not older than 1 year) j¦d{}j¦qØÎ submitted by the valuer. Investments made by the Bank as Primary Dealer in }°yj¦vÛj¦}« àj¦¸ioiÜ¦tÛÛj¦d Øl¥ØtÐqÛ Treasury Bills under HFT category is being valued at ««j¦ili|j¦ j¦|klØ}j¦q carrying cost. ÎÎ The Bank undertakes short sale transactions in Central àj¦j«¦®j¦j¦Û}|Û}°ØãØ««d Ûde¥j¦z|z¥« Government dated securities in accordance with j¦d|d} ¨¦Û|z|j¦ØÎ¢t¥}qÛ| ¨¦Û}}°}Ø 5%, JXLGHOLQHV 7KH VKRUW SRVLWLRQ LV UHÁHFWHG DV WKH amount received on sale and is netted in the Investment j¦}«}ØÎØÛÎd|d|oÛ«qØ schedule. The short position is marked to market and ÎØÛÎ¢t¥}qÛ|j¦ qdÎ|j¦ioÎ¤|Øj¦ ORVVLIDQ\LVFKDUJHGWRWKH3URÀWDQG/RVVDFFRXQW qØÎdfãdÎ|kØ«vqØÎq j¦f ZKLOHJDLQLIDQ\LVLJQRUHG3URÀW/RVVRQVHWWOHPHQW ãÎØfâvÖzqØÎ¢t¥}qÛ|j¦|}t| RIWKHVKRUWSRVLWLRQLVUHFRJQL]HGLQWKH3URÀWDQG/RVV Îe¥ãÎ|j¦ãdÎ|kØ«|Ø}°}ØÎ account. vqj¦Ø vf¥j¦ vvÛi vdz 6SHFLDOERQGVVXFKDV2LOERQGVIHUWLOL]HUERQGV8'$< bonds etc which are directly issued by Government of q Û{ ãØ j¦ ¸ qÛ j¦i qØ Îà j¦ j¦| India, is valued based on FIBL valuation. iÜ¦de¥ Ûij¦d{}j¦qØÎ

214 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

CC} j¦ i {Ø Øy CC ¨¦Û j¦ i f} { For the purpose of valuation of quoted investments in Û j¦ fz¤{Ø |« j¦ j¦| j¦ i ^ t¢j¦ ”Held for Trading” and “Available for Sale” categories, the market rates / quotes on the Stock Exchanges, i§o«q « fz¤{Ø z ÎØ Ü¦| oj¥¦ e v }° the rates declared by Financial Benchmarks India Pvt. tv e¥ Ûde¥i ¸ mØ z« j¦ f}l j¦ Ltd(FBIL) are used. lÎ Investments for which such rates / quotes are not q||«j¦iiÛz«fz¤{Øz«f} {|ÎÛ Îàf|j¦ available are valued as per norms laid down by Reserve j¦|ãØÛ^¥ àj¦ d Ûde¥ ¸|{¥Ø|zv« Bank of India, which are as under: j¦d|j¦lÎq|||Îà¡ A Government / - on Yield to Maturity basis. ‡ j¦Ûd|zØ }}§Ød{Ød} Approved securities }°ØãØ B Equity Shares, PSU - At break-up value (without and Trustee shares considering ‘Revaluation Û e§tÛ |Û|Ø Ø|} Î reserves’, if any) as per }Ûi i tÐtÛ d{j¦}||ÎÛ j¦d| °j¦ the latest Balance Sheet d} }|¥ j¦|dØ (not more than 12 months zj¦e¥Î}oj¦i | old), otherwise Re.1 per d|y` }°Øj ¦}|Û company. C Preference Shares - On Yield to Maturity basis Û d{|Û oØ¨¦vt}°vj¥¦d}j¦ & Pass through with appropriate credit d t¥Ü¦j¦t y}}§Ød{Ød} &HUWLÀFDWHV RWKHU spread mark-up. j¦{}Ø than priority sector) }°yj¦Ø }°}Ø D PSU Bonds - On Yield to Maturity basis j¦âvj¦ with appropriate credit spread mark-up. vÛ }Ûi ¢|v oØ¨¦vt}°vj¥¦d}j¦ E Units of Mutual - At the latest repurchase y}}§Ød{Ød} Funds price / NAV declared by e¥ od} ávj¦Û } áv¸}°Øj¦j¦Ûj¦ {« the Fund in respect of each |t« mØdµØ|}|k¥Ûz| scheme. dØi|iÛ} 1RQSHUIRUPLQJ LQYHVWPHQWV DUH LGHQWLÀHG DQG depreciation/provision are made thereon based on the ãØÛ ^¥ àj¦ j¦ z|z¥« j¦ d| d|q¥j¦ | j¦Û RBI guidelines. Based on management assessment }Îo|dfj¦g}d|}°{|j¦qØÎ¾ of impairment, the Bank additionally creates provision j¦}° {| j¦|j¦d{} àj¦^¥ àj¦j¦z|z¥««zÛ over and above the RBI guidelines. The depreciation/ le¥Ûg}dd{j¦dØ§Ø}°{|qØj¦ØÎàe provision on such non-performing investments are not set off against the appreciation in respect of other ØÎj¦d|q¥j¦|}¾}°{|j¦d|dq¥j¦}°ØãØ« performing securities. Interest on non-performing j¦ {«|q|j¦j×¦ |{¥Ø|ÎÛ j¦qj¦Ø LQYHVWPHQWV LV QRW UHFRJQL]HG LQ WKH 3URÀW DQG /RVV d|q¥j¦|} qj¦ãÎ|kØ««Ø Øj¦zq¥|ÎÛ j¦ account until received. qØq Øj¦f|j¦ÛØj¦}°}Ø|ÎÛ ÎqØÛÎ In respect of Investments at Overseas Branches, zÛkd««|j¦ {«ãØÛ^¥ àj¦dy Reserve Bank of India guidelines or those of the host q |z«qj¦z|z¥d{j¦j¦vÖÎ«lÎ«l countries, whichever are more stringent are followed. In q|z««qÎ ij¦e¥l¥|z¥|z¥t|ÎÎ ãØÛ case of those branches situated in countries where no ^¥ àj¦j¦l¥|z¥lÎ«l JXLGHOLQHVDUHVSHFLÀHGWKHJXLGHOLQHVRIWKH5HVHUYH Bank of India are followed. }¬j§}Ù 'LVSRVDORI,QYHVWPHQWV CC}}§ØØj¦{Ø j¦ }«lÛ¥j¦Ø|«j¦Û ¨¦Û} 3URÀW/RVVRQVDOHRI,QYHVWPHQWVFODVVLÀHGDV+70 ãÎ|j¦ {Ø|«j¦ÛãØdØlØ ÎÛj¦ FDWHJRU\ LV UHFRJQL]HG LQ WKH 3URÀW /RVV $FFRXQW d{}ãi Î|kØ«d j¦Øj¦lÎi CC}}§Ø based on the weighted average cost / book value of Øj¦{Ø lÛ¥j¦« {Ø|«j¦ ÎÛj¦Ø the related Investments and an amount equivalent ãj¦dØ} qÛkØ«|qØj¦lÎ RI SURÀW RQ VDOH RI ,QYHVWPHQWV LQ ´+HOG WR 0DWXULW\µ FODVVLÀFDWLRQ LV DSSURSULDWHG WR &DSLWDO 5HVHUYH iiÜ¦iioiÜ¦tÛÛj¦|«j¦Û ¨¦Û}ÎiãÎ|j¦ Account. ãi Î|kØ«lÎ 3URÀWORVVRQVDOHRI,QYHVWPHQWLQ$)6+)7FDWHJRU\LV ~ ¦ ~ÏÙk¡j§} UHFRJQL]HGLQSURÀWDQGORVVDFFRXQW àj¦| }|¡kÛz Øy }°ØØ¥Ø }|¡ kÛz |z|« j¦ k j¦Ø $FFRXQWLQJIRUUHSRUHYHUVHUHSR j¦|ÎØãØÛ^¥ àj¦¸ Øe¥le¥ij¦|k}°Ûj¦ The Bank has adopted the Uniform Accounting

215 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

d}|Î[}} ã ài}áidvÛiidqÛ| Procedure prescribed by the RBI for accounting of Market Repo and Reverse Repo transactions z¸ã àj¦}o|{ [Including the Liquidity Adjustment Facility (LAF) with q|{ iii}á ÎØ].}i ¥}|z|«j¦ the RBI vide circular no. RBI/2016-17/FMOD.MAOG. ÎØØÕ}}|¡kÛzj¦|j¦rØj¦} }Ç¥j¦f{h No. /01.01.001/2016-17 Dated 15-09-2016. Repo and j¦}«lÎ}j¦d|Øl¥Ø oÛle¥}°ØãØ j¦¥} Reverse Repo Transactions are treated as Collaterised Borrowing / Lending Operations with an agreement to j¦ØÎØ|kÛzÛle¥}°ØãØ«j¦}«z¥lÎØyf|Î« repurchase on the agreed terms. Securities sold under |««|ÎÛ j¦lÎlØØyqj¦Ûl| q Repo are continued to be shown under investments dqãÛÎj¦}«j¦ÛlÛÎ and Securities purchased under Reverse Repo are not included in investments. Costs and Revenues are }fÙ oc×~± Ù accounted for as interest expenditure / income, as the case may be. d«·j¦} ÎØ}¥}Ø}°Ø|{Øj¦|j¦ f´ ãØÛ ^¥ àj¦ | }} d Ûde¥ ,QYHVWPHQWÁXFWXDWLRQUHVHUYH With a view to building up of adequate reserves to protect vÛ Ûd| Û}Û ÛÛz| j¦d}° against increase in yields, RBI through circular number j¦{ãÛ àj¦«j¦Ï¥de¥iÜ¦dqØj¦| RBI/2017-18/147 DBR.No.BP. BC.102/21.04.048/2017- j¦ioØj¦Î 18 dated April 2, 2018, advised all banks to create an IFR with effect from the FY 2018-19. de¥iÜ¦d«d Ø||kØ L ¥j¦z||«j¦Û ¨¦Û} Transferred to IFR will be lower of the following (i) net ·ã LL ¥j¦·ã«d|¥|q|j¦mtj¦j¦ SURÀWRQVDOHRILQYHVWPHQWVGXULQJWKH\HDURU LL QHW ||Îlq Øj¦j¦deiÜ¦dj¦ÛØØd{}ioiÜ¦tÛ SURÀWIRUWKH\HDUOHVVPDQGDWRU\DSSURSULDWLRQVXQWLO diiÜ¦i}t¥Ü¦j¦j¦j¦}°ØØ|ÎÛ ÎØÛÎ the amount of IFR is at least 2 percent of the HFT and AFS portfolio, on a continuing basis. v t¢ 'HULYDWLYHV àj¦Ø¥|« qz«Øy®vt«vÛj¦ØÎ àj¦ The Bank presently deals in interest rate and currency ¸ÎØ qzvt« } qz}zÛ derivatives. The interest rate derivatives dealt with by the ® qz}ØyÜ¦v¥til°Û«t¤Îà àj¦¸ Bank are Rupee Interest Rate Swaps, Foreign Currency Î«q|®vt«d¢}|Øy®} Interest Rate Swaps, Exchange traded Rupee Interest Rate Future and Forward Rate Agreements. Currency i§o qtÐvvj¦ ÛªoÎà àj¦j¥¦tj ¦ltÐv l Derivatives dealt with by the Bank are Options, Currency dØ|}j¦ÛdØi zØd«j¦Û oyj¦i swaps and Exchange traded Currency Future. The vttÐ q§|j¦ØÎ Bank undertakes derivative transactions for market making/trading and hedging on-balance sheet assets ¡j§} and liabilities. ãØÛ^¥ àj¦j¦z|z¥«j¦d{}vtj¦ 9DOXDWLRQ j¦||||j¦qØÎ¡ Based on RBI guidelines, Derivatives are valued as y ol y o tÐv l Î dldl under: j¦v¥ j¦i qØ Î y o j¦ ¦} |Ø vt The hedge/ non-hedge transactions are recorded separately. Derivative contracts designated as hedges zi Ø Øj¦ qã}|ÎÍz¥ÛqØÛÎàq Øj¦j¦ are not marked to market unless their underlying is e|j¦d Ø|¥ÎØ qã}z¥lÎy oj¦ marked to market. In cases where the underlying of the ¦} lÛ¥j¦Øvt zi i qÎ d Ø|¥ÎØ qã} hedge is not subject to mark to market, the hedging instrument is to be accounted for on accrual basis. |ÎÍz¥qØÎf}od{}j¦¢v¥Îl tÐv lvt Trading derivative positions are marked to market and }q|j¦ qo|ÎØj¦lÎØy}ÛÎ|z WKHUHVXOWLQJORVVHVLIDQ\DUHUHFRJQL]HGLQWKH3URÀW j¦e¥Îj¦ãÎ|kØ«zq¥j¦lÎãzj¦e¥Î DQG/RVV$FFRXQWDQG3URÀWLIDQ\LVLJQRUHG,QFRPH j¦âvÖzlÎ qz} {ØdØy|}t| and expenditure relating to interest rate swaps are UHFRJQL]HGRQWKHVHWWOHPHQWGDWH*DLQV/RVVHVRQ ØÛkj¦lÎtÐv l}j¦Û}Ø}ÎiãÎ|j¦ termination of the trading swaps are recorded on the }ØØy}dj¦}«zq¥j¦lÎ termination date as immediate income/expenditure. j¦|j¦f´j¦}j¦foØj¦Ûl|f For the purpose of valuation, the fair value of the total swap is computed on the basis of the amount that j¦d{}j¦ÛlÛÎqj¦Ø|}j¦ÛØÛkj¦} would be receivable or payable on termination of rØ« {Ø|z|j¦Û}Ø}}°}zÎl the swap agreements as on the Balance sheet date. e {ØÎ|zj¦e¥Îj¦i}¥}°{|j¦iliÎà Losses arising there from, if any, are fully provided for, ZKLOHWKHSURÀWVLIDQ\DUHLJQRUHG àj¦iÜ¦e¥vÛide¥¸|{¥Ød¢}|}°Ûk j¦|· Ø«

216 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

j¦}|j¦ØÎd¢}|tÐ q§|«}}°ÛtÐ q§|j¦Û The Bank follows the option premium accounting principle prescribed by FEDAI. Premium on option d{}Ø}¥}Ø}dj¦}«d j¦Ø WUDQVDFWLRQLVUHFRJQL]HGDVLQFRPHH[SHQVHRQH[SLU\ j¦lÎ or early termination of the transaction. d¢}| zd«j¦|ØÛj¦}}°}Ø}°zÏd¢}|} The amounts received/paid on cancellation of option }°}ØãÎ|j¦}«d j¦Øj¦Ûle¥ÎzÛ|z FRQWUDFWV DUH UHFRJQL]HG DV UHDOL]HG JDLQVORVVHV RQ zd«j¦|ØÛj¦}Ø}}°}z}°ã«d} options. Charges receivable/payable on cancellation/ j¦|ØÛj¦}Øj¦ÛØÛkj¦dj¦}«d j¦Ø termination of foreign exchange forward contracts and VZDSVDUHUHFRJQL]HGDVLQFRPHH[SHQVHRQWKHGDWH j¦lÎ of cancellation/ termination. qzªo¥ de¥diÜ¦ j¦ j¦|i§o«q¸f} {j¦e¥ Valuation of Interest Rate Futures (IRF) is carried out on le¥}°Øj¦ zj¦z|j¦|}t|j¦d{}j¦lÎ the basis of the daily settlement price of each contract zÛ®vtÛ zd« {Ødj¦j¦zØd« provided by the exchange. j¦Ø|}j¦ÛØÛkj¦iÜ¦e¥vÛide¥¸d{oØd Ø Contingent Liabilities on account of derivative contracts |z«}}t¥j¦lÎ denominated in foreign currencies are reported at FORVLQJ UDWHV RI H[FKDQJH QRWLÀHG E\ )('$, DW WKH dl±¢ Balance Sheet date. ãØ yØyej¦ÛmÎlÛ yd«j¦dl° $'9$1&(6 |j¦d|j¦ zl{i Î|dØ«j¦ }«lÛ¥j¦Øj¦i 4.1 Advances in India of the Parent and Subsidiaries liÎàde|}Îe¥Î|j¦ {«} fkØd| DUH FODVVLÀHG DV 6WDQGDUG 6XEVWDQGDUG 'RXEWIXO j¦dãØÛ^¥ àj¦¸|{¥Øj¦}¥|zv«j¦ or Loss assets and Provision for losses are made d|}°{|j¦iliÎàzÛkd«Øyd| l«¸ on these assets as per Prudential Norms of Reserve j¦ilidl°j¦ {«dl°«j¦lÛ¥j¦ãØÛ^¥ àj¦ Bank of India except as stated in Para 4.3. In respect j¦dyq |zj¦y|Ûj¦|| q«dl°zl of Advances made in overseas branches and overseas Î¸|{¥Øj¦ili|z v «qãÛd{j¦kØÎj¦ VXEVLGLDULHV $GYDQFHV DUH FODVVLÀHG LQ DFFRUGDQFH with the Prudential Norms prescribed by the Reserve d| }j¦lÎ Bank of India or local laws of the host country in which dl°thÎ|}°{|«fo|Ø qzl°Ø{ advances are made, whichever is more stringent. qkØ««}°}Øi kÛle¥}°}Øz j¦ij¦ili $GYDQFHV DUH QHW RI VSHFLÀF ORDQ ORVV SURYLVLRQV }°{|j¦Û|Î interest suspense; amount received and held in suit- ØØdãj¦}« àj¦|||}dØ§Ø}°{|j¦Î¡ ÀOHG6XQGU\'HSRVLWDQG&ODLPV5HFHLYHG 4.3 As a constant practice, Bank has made the additional • j¦Û |j¦ dj¦Ød« j¦ } Ø provision on the following: d|j¦dl°}j¦}°{| • Provision @ 20% on the Secured Sub-standard • ¨¦vt }Ø¥| mtj¦ ÛÛiÜ¦ l j¦j¦ Advances as against the Regulatory requirement of ¸i|}Ûif{j¦Ø¥d«j¦Ûl|{d{Ø{d« 15%. }}°{|j¦lÎàÎ}°{|f{j¦Ø¥j¦|{ • Provision is made on Non-fund based facilities of NPA d{Ø{j¦dØl¥}d{ØÎ Borrowers by applying 50% Credit conversion factor • Î}|d }Ç¥j¦§Øqzi|}ÛikØ« (CCF). The provision is based on the Asset class of yd¢thh§ØlØhd }Ï« fund based facility of the Borrower j¦ {j¦j¦}hj¦ {« àj¦|}°{| • Parent has made 100% provision in respect of existing j¦Î NPA accounts which are more than 6 months old and FROODWHUDO IUHH YL] $XWR /RDQ (GXFDWLRQ /RDQ DQG }Ï«j¦ {j¦j¦}hqj¦Õd{j¦j¦ Personal Loan. i|}ÛiÎi Ø }Ç¥j¦ Îj¦ {« àj¦| • With respect to Loan against mortgage of properties }°{|j¦Î which are secured (collateral) and are NPA for more • àj¦ | Î }| qz i|}Ûi kØ« y than 2 years, Bank has made 100% provision tÐ§tt}¢tÎØhj¦ {«ãÛ • Parent has also made 100% provision in respect of }°{|j¦Î H[LVWLQJ 13$ DFFRXQWV YL] /RDQ IRU 7UDFWRUV WLOOHU Power tillers which are 6 month old. }||¥{¥Ø}|l¥uØkØ« j¦ { « ãØÛ ^¥ àj¦ j¦ 4.4 In respect of Rescheduled / Restructured accounts, z|z¥«j¦d|}|l¥uØdl° j¦iqzØÕ Provision for diminution in fair value of restructured }dj¦|j¦ØÎi}°{|j¦lÎ advances is measured in present value terms as per RBI guidelines. dØlÛ¥j¦i }°{|j¦}°q| ¢ j¦v¥q àj¦ )RU WKH SXUSRVH RI $VVHWV &ODVVLÀFDWLRQ DQG d¢}×á vÖzj¦Û}¥ØÛd| lÛÎl àj ¦lÏÛ provisioning, BOB Card, the wholly owned subsidiary

217 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

qÛj¦{|j¦|Û j ¦}| j¦j¦}¥ of BOB, is governed under the broad guidelines of “Non Banking Financial (Non-Deposit, Accepting/ |z v ^¥ àj¦ |z¥j¦ØØz|z¥ j¦ØÎØ holding) Companies Prudential norms (Reserve Bank) | ØÎ Directions, 2007”. dØ}|l¥u|j ¦}|Û idÛ }°ØãØj¦j ¦}|Û iÛ j¦ ,QFDVHRIVDOHRIÀQDQFLDODVVHWVWR$VVHW5HFRQVWUXFWLRQ oÛle¥dØ«j¦« àj¦ãØÛ^¥ àj¦¸qÛj¦i &RPSDQ\ $5& 6HFXULWL]DWLRQ &RPSDQ\ 6& WKH liz|z¥«j¦}|j¦ÎÎØ¥|« àj¦¸d| bank is following the guidelines issued by Reserve Bank of India. At present, the guideline followed by j¦iqÎz|z¥Îàj¦z ¨¦Û| ÎÛ i| ÛÛ the Bank is that if the sale is at a price below the net dy¥Ø ÎÛmti j¦l}°{| j¦}Îe¥ÎØ book value (NBV), (i.e. Book value less provisions held) j¦Ûj¦fÛ¥j¦ÛØlØd Øj¦Ûd{«ãi Î|kØ WKHVKRUWIDOOLVGHELWHGWRWKHSURÀWDQGORVVDFFRXQWLQ «|j¦qiz ¨¦Û| ÎÛj¦Ûd}d{j¦ the same year. If the sale value is higher than the NBV, H[FHVVSURYLVLRQLVUHYHUVHGWRSURÀW ORVVDFFRXQWLQ ÎØq¥«d{j¦}°}ØÎe¥Îfj¦ãi Î| the year the amounts are received. kØ«¥j¦zqØÎ ,QFDVHRIVDOHRIÀQDQFLDODVVHWVWREDQNVDQGWKHVDOH j¦ j¦ oÛle¥ÏÛdØ Øy|ÎÛ dy¥Ø ÎÛ is at a price below the net book value (NBV), (i.e. Book j¦ili}°{| j¦} ¨¦Ûj¦ j¦Ûj¦ value less provisions held) the shortfall is debited to fÛ¥ ãi Î|kØ |j¦qilz ¨¦Û WKHSURÀWDQGORVVDFFRXQWLQWKHVDPH\HDU,IWKHVDOH value is higher than the NBV, excess provision shall be i| Û Ûd{j¦ÎØdØ§Ø}°{| j¦¥|ÎÍj¦qil not reversed but will be utilised to meet the shortfall j¦d|d|q¥j¦dØ j¦Û ¨¦Ûj¦j¦j¦ÛÎ|j¦} / loss on account of sale of other non-performing j¦|j¦i}°l qil ÀQDQFLDODVVHWV dzÜ~±|}¢ )/2$7,1*3529,6,216 The Parent has a policy for creation and utilisation of dl°«|i |f´«j¦|¥i f}lj¦i àj¦ ÁRDWLQJSURYLVLRQVVHSDUDWHO\IRUDGYDQFHVLQYHVWPHQWV j¦Û}yj¦dyÛ}°{| ||j¦Û|ÛØÎj¦iq|dye¥ DQG JHQHUDO SXUSRVHV 7KH TXDQWXP RI ÁRDWLQJ }°{|}j¦ j¦|}°Ø¥j¦qØÎãØÛq¥ provisions to be created is assessed every year. The àj¦ j¦Û }¥ d|Ø |ÛØ« « |z¥t t }yØ« j¦ ÁRDWLQJ SURYLVLRQV DUH XWLOLVHG RQO\ IRU FRQWLQJHQFLHV d Øl¥Ød|dj¦j¦j¦idyÛ}°{|j¦f}l XQGHU H[WUDRUGLQDU\ FLUFXPVWDQFHV VSHFLÀHG LQ WKH policy with prior permission of Reserve Bank of India. j¦qØÎ ),;('$66(76 dodÙ¡¢ 3UHPLVHV DQG RWKHU À[HG DVVHWV DUH VWDWHG DW }|¥ j¦Ø}«j¦âvÖj¦}d|do historical cost except revalued premises which dØ |Ø¡}}lØlØ}z¥ÛlÛÎà are stated at revalued amount. The appreciation }|¥ j¦|}Îe¥·j¦} qÛlØdØ|{«q on such revaluation is credited to Capital Reserve. j¦lÎ 6.2 Premises include Land and Building under construction. CC} «ãØy|¥{Û|ã|j¦Î 5(6(59(6$1'6853/86 d Ù}|¡i¡d|¢ Revenue and other Reserves include Statutory qi d|dØ|{«« ·z««}°oØy|Û Reserves created by foreign branches / subsidiaries as j¦||«j¦d|zÛkd«¸|¥Ø {j¦dØ per applicable local laws of the respective countries. |{«j¦j¦lÎ 5(9(18(5(&2*1,7,21 qj§}|¦ ¢ 1. Income (other than item referred in Paragraph 8.2)/ expenditure is generally recognised on d }l°Ü¦ « fkØ z ã|| j¦ DFFUXDOEDVLV,QFDVHRIIRUHLJQRIÀFHVLQFRPH |{¥|Ø¡f}od{}j¦lÎzÛ expenditure is recognised as per the local laws of j¦¥«j¦« ·zqÎ zÛj¦¥yØ WKHFRXQWU\LQZKLFKWKHUHVSHFWLYHIRUHLJQRIÀFH Îy|Û|«j¦ØÎØdj¦|{¥j¦lÎ is located. 2. Income by way of Fees, all Commissions (other j¦j¦{}°}Ødj¦Ûj¦ j¦âvÖj¦ than on Government business), and Commission j¦Û|l tÛk}}j¦Û||zÛØy on Guarantees, Letter of Credits, Exchange and dØz «dl° «} qj¦Øj¦Û Brokerage and Interest on Advance Bills are d{}Î «lÎd| l« §Øfµ« accounted for on realisation basis. Dividend on shares in Subsidiaries, joint ventures and ØyÎlÛej¦e«««j¦ã j¦Ûd{ associates is accounted on realisation basis. }Î «lÎ

218 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

d|q¥j¦dØ |«j¦««dj¦ÛÛj¦Û 3. In view of uncertainty of collection of income in d|ÅØØj¦j¦iÛdãØÛ^¥ àj¦l¥|z¥« cases of Non-performing Assets/ Investments, VXFKLQFRPHLVDFFRXQWHGIRURQO\RQUHDOL]DWLRQ j¦d|j¦Î|}ÎÛk j¦Øj¦ÛlÛÎ in terms of the RBI guidelines. i}t¤tqÎ Øj¦qki ã}t¤tzØj¦ 4. Lease where risks & rewards of ownership are }ÎØÎfii }t¤tz| j¦d|}o| UHWDLQHG E\ OHVVRU DUH FODVVLÀHG DV 2SHUDWLQJ }t¤tj¦}«lÛ¥j¦Øj¦qØÎeØÎj¦}t¤tj¦ Lease as per AS 19 (Leases). Lease payments ãlØ|j¦j¦¢v¥iij¦d|}t¤t|z vj¦ RQ VXFK OHDVH DUH UHFRJQLVHG LQ 3URÀW /RVV g}ãÎ|kØ«Û{Ûkd{}j¦qØÎ Account on a straight line basis over the lease tern in accordance with AS 19. i i}~ÜikÙ¬¬Üj§}q}¢ 8.5 . $ $SSURSULDWLRQRIUHFRYHULHVLQ13$DFFRXQWV i i|}Ûij¦ {«}kØ««}°ãÛ a) Recoveries effected in the account Û q|{|Ûd{|j¦ØÎØÛ (including recovery under Public Money ÎØ ||ØÛj¦|qØÎ|ÛoÎ¡ Recovery Act) from time to time should be Û àj¦¸ }°zÏ Î| j¦ l ãÛ lØ appropriated in the following manner: j¦Û|}°ãd b) towards all costs, commission, charges and expenses paid or incurred by the Bank Û àj¦} z q dØ§Ø q d| q z vØj¦ q} c) towards interest, additional interest, further interest, penal interest due to the Bank vÛ {|j¦ãlØ|} d) towards payment of the principal money Û zzv¨¦ÛkØ««Ûj¦||||qØ % 5HFRYHU\LQVXLWÀOHGGHFUHHGDFFRXQWVVKRXOG j¦q|oÎi¡ be appropriated: i {Ø|j¦z|z¥«j¦d| a) As per the directives of the concerned Û |j¦e¥dz}°}Ø|ÎÛ Î|j¦ Court. «lzzkØ««ld| E ,Q WKH DEVHQFH RI VSHFLÀF GLUHFWLYHV IURP WKH &RXUW DV DSSOLFDEOH WR QRQVXLW ÀOHG Û rØi|ÛitÛ{|j¦{j¦Ûle¥ accounts. ¡ C) Recovery by settlement through compromise/ i|ÛitÛ j¦ { rØ |}t| rØ NCLT Resolution: Ûj¦ØkØ«j¦«Ûj¦Ûj¦|q| In case of Resolution/Settlement through NCLT rØ Ûj¦Ø {| |}t| j¦ d| j¦ or compromise sanctioned account, recovery qil should be appropriated as per the terms of compromise sanction/resolution settlement. qÜ}Üj§~}Ü¢ /LIH,QVXUDQFHFRPSDQ\ ~±Üd¢ 3UHPLXP,QFRPH zÎ|}}°Û j¦j¦|dqÛitÛ j¦dj¦ Premium (net of service tax and GST) is recognised }«Î «qØÎÎØÛ¥j¦iq ÎlÛ as income when due. For linked business, premium is ej¦e qØj¦ÛqØÛÎà}°Ûj¦l|«qØÎt¢} recognised when the associated units are created. Top d}}°Ûj¦ij¦}°Ûj¦}«rqØÎ up premiums are considered as single premium. }lØ}¢«}}°Ûj¦Ø dj¦ }«qØÎ Premium on lapsed policies is recognised as income q iÛ}¢ }|¡oj¦ÛqØÛÎà when such policies are reinstated. }| Û¥Î|}}°}Øj¦Û|j¦fd{«dj¦ }« Commission received on reinsurance ceded is Î «qØÎq }| Û¥}°Û}°}ØÎØÎ recognised as income in the period in which reinsurance premium is ceded. ¡¨v}|¬d¢ ,QFRPHIURPOLQNHGIXQGV §v|{«q«}°Ûd t|}°ã}Û}°|j¦ Income from linked funds which includes premium }°ãt¥tÛ}°ã|{}° {|}°ãeØzÎà}°}Ø allocation charges, policy administrative charges, dj¦qÛj¦ÛlÛ}¢Ûj¦ÛØÕi |«j¦d| §v mortality charges, fund management charges etc. are |{«j¦qØÎ recovered from the linked funds in accordance with the ~}Ü¦~±Ü¢ terms and conditions of policies issued. 5HLQVXUDQFH3UHPLXP }| Û¥j¦Û lØ j¦ Ûj¦Ø¥ j¦ y j¦Û lÛ Ø¥ dy Cost of reinsurance ceded is accounted for at the time · ØØ¡yj¦d|}°Ûdj¦|{¥j¦ of recognition of premium income in accordance with

219 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Î «qØÎ}| Û¥}ãj¦Û|j¦}| Û¥ the treaty or in-principle arrangement with the reinsurer. 3URÀWFRPPLVVLRQRQUHLQVXUDQFHFHGHGLVQHWWHGRII }°}Ø}°Û}qØj¦qØÎ against premium ceded on reinsurance. ~±{Ðä {¬ÏÙ ¢ %HQHÀWVSDLG LQFOXGLQJFODLPV }°zÏã««}¢ÛãØyz|}t|lØzj¦e¥Î %HQHÀWV SDLG FRPSULVH RI SROLF\ EHQHÀWV FODLP Îà settlement costs, if any. Ød|· ev Øydã}¥z«j¦o|}°}ØÎ|} Death, rider & surrender claims are accounted for on Î «qØÎ receipt of intimation. fÏqÛÛãz«Øy}}§Øz«j¦zÎ|}l|« 6XUYLYDO EHQHÀW FODLPV DQG PDWXULW\ FODLPV DUH qØÎ accounted for when due. §v}¢« j¦ ØÎØ dÎ« Øy dã}¥« j¦ {Ø Withdrawals & surrenders under linked policies are q|d««Ø Î «qØÎq d| lÛej¦e accounted for in the respective schemes when the |ØÎqØÛÎàz«}}| Û¥Ûj¦ {Øz«j¦Û associated units are cancelled. Reinsurance recoveries fÛd{«Î «qØÎ on claims are accounted for, in the same period as the d|l±ÏlÙ¢ related claims. d{l°ÎlØiÛlØÎàqã||ã||ÎØÛÎàd}°yj¦ $FTXLVLWLRQ&RVWV Acquisition costs are costs that vary with and are Øy Û zd«j¦d{l°Î ·ÎØÛÎàdfd{ primarily related to acquisition of insurance contracts j¦ÛqØÛÎàq f}lØÎØÛÎà and are expensed in the period in which they are qÜ}Ü~£¬j§i{Ù¢ incurred. /LDELOLW\IRUOLIHSROLFLHV j ¦}|Ûj¦Û Û j¦j¦zØd«j¦Ûl| Ûd{| Û Actuarial liabilities of the company have been calculated |j¦Øyj¦}°{j¦ dØ zØi Øy Ûj¦Ø¥d« in accordance with the requirements of insurance j¦¢«Ûq¥| ||ãØÛ Û j¦j¦ y| Act.1938, Insurance Regulatory and Development ¸ qÛ z|z¥ |t Øy |Ø¡ y}Ø Û j¦j¦ Authority (Assets, Liabilities, and Solvency Margin of Insurers) Regulations, 2000, Guidance Notes issued by }·Ø«j¦d|j¦ÛqØÛÎ Institute of Actuaries of India and generally established }¢ actuarial practices. Ûd{| Û |j¦ Øy j¦ }°{j¦ ,QYHVWPHQWV | || Û|j¦Øyj¦}°{j¦ Investments are made in accordance with the Insurance Act, 1938, the Insurance Regulatory and Development | {| || Øy } Authority (Investment) Regulations, 2000, the insurance de¥dvÛi¸qÛj¦ilid|}}«d{o|d«j¦ regulatory and Development Authority (investment) d||j¦iqØÎà (Amendment) Regulations, 2001 and various other FLUFXODUV QRWLÀFDWLRQV LVVXHG E\ WKH ,5'$ LQ WKLV j§¦o Üä¢ context from time to time. ä}| (03/2<((6%(1(),76 àj¦d¢}×á vÖz }ÛiÜ¦ |« j¦ d| ã |{ ij¦ 3529,'(17)81' {j¦zØÎqj¦ØÎØ àj¦}¥|{¥Øz«}|ÅØ Parent’s Provident fund is a statutory obligation as SHU%DQNRI%DURGD3)5XOHVDVWKH3DUHQWSD\VÀ[HG d z|j¦ãlØ|j¦ØÎ àj¦j¦Û {Øi|ÅØd z| contribution at pre-determined rates. The obligation Øj¦ÎÛÛØÎd z|«j¦ãi Î|kØ«}°ãØj¦ RIWKH3DUHQWLVOLPLWHGWRVXFKÀ[HGFRQWULEXWLRQ7KH qØÎ|{ j¦}° {| àj¦d¢}×á vÖzã|{|¸ FRQWULEXWLRQVDUHFKDUJHGWR3URÀWDQG/RVV$FFRXQW The fund is managed by Bank of Baroda Provident j¦qØÎ Fund Trust. l±otÜ *5$78,7< àj¦d¢}×á vÖzl°otÛ|{|«i | Øyl°otÛ Parent’s Gratuity liability is a statutory obligation being ãlØ|d{|j¦d|l°otÛzØij¦ {j¦ higher of gratuity payment as per Bank of Baroda zØÎqj¦l°otÛãlØ|j¦ÎÛd{j¦Îej¦ {¥ Gratuity Fund Rules and Regulations and payment of j¦Û}Ø« Û j¦j¦ j¦|j¦d{}}°{|j¦qØ gratuity Act 1972. This is provided for on the basis of DQDFWXDULDOYDOXDWLRQPDGHDWWKHHQGRIWKHÀQDQFLDO Î àj¦¸l°otÛj¦i|{f} {j¦ÛqØÛÎi ej¦ year. The gratuity liability is funded by the Parent and is }° {| àj¦d¢}×á vÖzl°otÛ|{tÐt¸j¦qØÎ managed by Bank of Baroda Gratuity Fund Trust.

220 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

~¬} 3(16,21 àj¦d¢}×á vÖzj¦¥oÛ}«||j¦d Ø¥lØ}«| 13DUHQW·V3HQVLRQOLDELOLW\LVDGHÀQHGEHQHÀWREOLJDWLRQ zØij¦|ÅØÎØ {ØÎdej¦ {ÏÛ¥j¦Û under Bank of Baroda Employees Pension Regulations 1995 and is provided for on the basis of actuarial }Ø« oØ j¦|j¦d{}}°{|j¦qØÎàÎ YDOXDWLRQPDGHDWWKHHQGRIWKHÀQDQFLDO\HDUIRUWKH f|j¦¥o«j¦iÎq|Î |Øj¦ àj¦l°Î employees who have joined Parent up to 31.03.2010 j¦Ûd}«|j¦j¦} àj¦d¢}×á vÖz j¦¥oÛ }«| and opted for pension. The pension liability is funded |{|¸q|j¦i|{f} {j¦ÛqØÛÎ by Bank of Baroda (Employees) Pension Fund Trust. |Û}«|q|qj¦ àj¦«j¦dyej¦}ÅØ 10.3.2 Parent’s New Pension Scheme which is applicable to employees who joined Parent on or after 01.04.2010 « d| j¦¥o« } l ÎØÛ Î ij¦ }ãØ LV D GHÀQHG FRQWULEXWLRQ VFKHPH %DQN SD\V À[HG d zÛq|Î àj¦}¥|{¥Øz}|ÅØd z|j¦ contribution at pre determined rate and the obligation ãlØ|j¦ØÎ àj¦j¦zØj¦|{¥Ød z|Øj¦ÎÛ RI WKH %DQN LV OLPLWHG WR VXFK À[HG FRQWULEXWLRQ 7KH ÛØÎd z|j¦ãi Î|kØ«}°ãØj¦qØÎ FRQWULEXWLRQLVFKDUJHGWR3URÀWDQG/RVV$FFRXQW Ù~ Ùd}~zÙ &203(16$7('$%6(1&(6 oØØ}Ød|}yØqj¦dq¥Ødj¦ }Ûi Øy Accumulating compensated absences such as Privilege Leave and unavailed Sick Leave of Parent’s employees i|li ÛÛdj¦j¦}°{| Û j¦j¦ j¦|j¦ are provided for based on actuarial valuation. d{}j¦qØÎ 27+(5(03/2<((%(1(),76 d}j§¦o Üä 2WKHU(PSOR\HHEHQHÀWVVXFKDV/HDYH(QFDVKPHQW d|j¦¥oÛ ã q j¦ ât¤tÛ |j¦zÛj¦ ât¤tÛ Ø Leave Fare Concession and Additional Retirement j¦ iiÜ¦Û d|Ø}dØ§Ø|Øã %HQHÀW RQ 5HWLUHPHQW RI 3DUHQW·V HPSOR\HHV DUH eØzj¦ Ûj¦j¦ j¦|j¦d{}}°z|j¦qØÎ provided for based on actuarial valuation. ,Q UHVSHFW RI RYHUVHDV EUDQFKHV DQG RIÀFHV WKH zÛkd«i j¦¥«j¦ {«j¦¥o« {Ø EHQHÀWVLQUHVSHFWRIHPSOR\HHVRWKHUWKDQWKRVHRQ ã«j¦}°Ø|§Ø}lij¦¥o«j¦âvÖj¦ ·z« deputation are valued and accounted for as per laws lj¦||j¦d{} j¦ØØykj¦Øj¦qØÎ prevailing in the respective territories. ¿¢ '(35(&,$7,21 ãØ « do dØ« } ¾ |Ûo zi li } Depreciation on Fixed Assets in India [other than those Ûi vÛ« zã¥Øj¦âvÖ j ¦}|Ûd{|j¦Û referred in Paragraph c & d] is provided on the written down value method in accordance with Schedule II to d|oÛ,,j¦d|¾Ø ÎÛ}·Øj¦d{ the Companies Act, 2013, except in case of revalued } }|¥ j¦Ø dØ j¦ âvÖ qj¦ { « e| assets, in respect of which higher depreciation is }|¥ j¦Ø dØ« j¦Û d||Ø f}lØ d{ j¦ provided on the basis of estimated useful life of these d{}qz¾j¦qØÎ}°z|j¦lÎ revalued assets i ãØ ÎdodØ«}¾ |Ûozili a) Depreciation on Fixed Assets outside India [other than }Û« zã¥Øj¦âvÖ y|Ûj¦||dy · those referred to in Para c below] is provided as per z«}°oØ} }d«j¦d|}°z|j¦qØÎ local laws or prevailing practices of the respective territories. Û j¦}t«Øy ªt q ãØ d ãØ Î j ¦}tÎv¥j¦d|¥d lÎàf|}¾ b) Depreciation on Computers and Software forming an integral part of Computer Hardware, in and outside ãØÛ^¥ àj¦j¦z|z¥«j¦d|tÐte| India is provided on Straight Line Method at the rate { }°Ø¥ j¦Û z }°z| j¦ l Î of 33.33% p.a., as per the guidelines of RBI. Computer j ¦}tªtqÎv¥j¦d|¥d l|ÎÛ Î software not forming part of an integral part of hardware fãi Î|kØÛ{}°ãØj¦zlÎ LVFKDUJHGGLUHFWO\WR3URÀWDQG/RVV$FFRXQW Û itÛi}¾}°Ø¥j¦Ûz}·Ø c) Depreciation on ATMs is provided on Straight Line tÐte| }°z|j¦qØÎ Method at the rate of 20% p.a. vÛ }·¥|«} ¾ kÛz f}l ¦ j¦| j¦Û d) Depreciation on additions is provided proportionately ØÛkd|}Øj¦d{}}°{|j¦lÎ from the date of purchase/put to use. e¥ }t¤tj¦Øãi }t¤tj¦Ø} {Û{«j¦ÛlØ e) Cost of leasehold land and leasehold improvements j¦}t¤tj¦Ûd{j¦z|}{|j¦lÎ are amortised over the period of lease dÙ¬j§ÜÙ¢ ,03$,50(172)$66(76 Impairment losses (if any) on Fixed Assets (including dodØ«j¦ÛØ }|¥ j¦ØdØ«ÎØ zj¦e¥ UHYDOXHG DVVHWV DUH UHFRJQL]HG LQ DFFRUGDQFH ZLWK Îj¦|{¥ãØÛ|zÛkj¦ y|¸e {«

221 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

qÛk|j¦ dØ«j¦ÛØ j¦d|j¦qØÎ the AS 28 (Impairment of Assets) issued by ICAI and dãi Î|kØj¦}°ãØj¦qØÎ FKDUJHGRIIWR3URÀWDQG/RVV$FFRXQW {Ü¯¡Ï ¢ )25(,*1&855(1&<75$16$&7,216 zÛ® {Ø Î« j¦ k j¦| ãØÛ |zÛ 13.1 Accounting for transactions involving foreign exchange kj¦ y|¸qÛk|j¦ zÛ®z« is done in accordance with AS 11, (The Effects of Changes in Foreign Exchange Rates), issued by the }Ø¥|«j¦}°ã j¦d| }j¦lÎ ICAI. k|j¦iij¦d| àj¦j¦zÛ®} o|«j¦ i 13.2 As stipulated in AS 11, the foreign currency operations of ij¦Ûj¦Ø}o|i Û dj¦Ø}o|«j¦}«lÛ¥j¦Øj¦ WKH3DUHQWDUHFODVVLÀHGDVD ,QWHJUDO2SHUDWLRQV lÎ yj¦ÛãÛzÛkd«d¢}á àj ¦lej¦e«zÛ and b) Non Integral Operations. All Overseas Branches, d| l«j¦dj¦Ø}o|i zÛ®j¦m}o|«i Offshore Banking Units, Overseas Subsidiaries of Parents }°Ø|{j¦¥«j¦ij¦Ûj¦Ø}o|i }°Ø|{j¦¥«j¦ij¦Ûj¦Ø are treated as Non Integral Operations and domestic }o|j¦¦}«|lÎ operations in foreign exchange and Representative ij¦Ûj¦Ø}o|«j¦ {«} Ø¡ 2IÀFHVDUHWUHDWHGDV,QWHJUDO2SHUDWLRQV i Îj¦}°yj¦Ø}iÜ¦e¥vÛide¥¸oØj¦Ûle¥ 13.3 Translation in respect of Integral Operations: dØ}ØÎj¦z«}j¦v¥j¦lÎ a) The transactions are initially recorded on weekly Û zÛ®| {ØdØi zØd« dj¦j¦ average rate as advised by FEDAI. zØd«ÎØ j¦iÜ¦e¥vÛide¥¸}°Øj¦ØÎÛj¦d Ø« b) Foreign Currency Assets and Liabilities (including oØj¦Ûle¥§q l}tz«}¦} ØØj¦lÎ contingent liabilities) are translated at the closing spot Û }Û|d Ø«j¦Ûl|ddyj¦}«j¦Û UDWHVQRWLÀHGE\)('$,DWWKHHQGRIHDFKTXDUWHU le¥ÎØye|j¦Øz|ãi Î|kØ«k j¦|j¦ F 7KH UHVXOWLQJ H[FKDQJH GLIIHUHQFHV DUH UHFRJQL]HG lÎzÛ®dØzØd« {Ûj¦ÛãÛãlØ|dy as income or expenses and are accounted through ¥j¦}â}ØÎj¦ÛdØ§q lz«j¦d{} 3URÀW /RVV $FFRXQW $Q\ UHYHUVDO SD\PHQW RI j¦lÎØy j¦i fqj¦iãlØ| foreign currency assets & liabilities is done at the j¦lÎ¥j¦lÎj¦ Ûoj¦d Øj¦ãi weekly average closing rate of the preceding week DQGWKHGLIIHUHQFHEHWZHHQWKHRXWVWDQGLQJÀJXUHDQG Î|kØ«z¥lÎ the amount for which reversal / payment is made, is vÛ Ø|}j¦ÛØÛkj¦ j¦i tÐv lj¦i{ØzÛ UHÁHFWHGLQSURÀWDQGORVVDFFRXQW ®}¢ti z zd j¦¨¦¡iÜ¦e¥vÛide¥¸ d) Foreign exchange spot and forward contracts outstanding d{oØd Ø}¢ti zz }Øyd Ø}}§Ø as at the balance sheet date and held for trading, are Û zd«j¦e t}tvz }}|¥ j¦Øj¦l marked to market at the closing spot and forward rates ÎitÛij¦Ø¥|j¦}°}Øj¦|j¦ie}°j¦ UHVSHFWLYHO\ QRWLÀHG E\ )('$, DQG DW LQWHUSRODWHG UDWHV }°}ØitÛij¦vj¦g tj¦lÎeitÛij¦ for contracts of interim maturities. The MTM values thus }°l}ÛÛd{Ø}¢ti z Î j¦}|¥ j¦|j¦ obtained are discounted to arrive at present value of ij¦lÎ}¦}dl° j¦|ãÎ|j¦ MTM. This MTM is used to revalue the spot and forward ãi Î|kØ j¦lÎ transactions on PV basis. The resulting Forward Valuation dj¦Ø}o|«j¦ {«} Ø¡ SURÀWRUORVVLVLQFOXGHGLQWKH3URÀW /RVV$FFRXQW 13.4 Translation in respect of Non Integral Operations: i dØ« i zØd« dj¦j¦ zØd« ÎØ j¦ iÜ¦e¥vÛide¥¸}°Øj¦ØÎÛj¦d Ø«oØj¦Ûle¥ a. Assets and Liabilities (including contingent liabilities) DUH WUDQVODWHG DW WKH FORVLQJ VSRW UDWHV QRWLÀHG E\ d Ø}¢tz«}¦} ØØj¦lÎ FEDAI at the end of each quarter. Û Ø|}j¦ÛØÛkj¦ j¦zÛ®}¢ti z b. Foreign Exchange Spot and Forward contingent dj¦j¦zØd«j¦iÜ¦e¥vÛide¥¸d{oØd Ø liabilities outstanding as at the balance sheet date }¢ti zz«}Øyd Ø}}§ØÛ zd« are translated at the closing spot and forward rates j¦e t}tvz«}¦} ØØj¦lÎ UHVSHFWLYHO\QRWLÀHGE\)('$,DQGDWLQWHUSRODWHGUDWHV for contracts of interim maturities. Û di j¦iÜ¦e¥vÛide¥¸}°Øj¦ØÎÛj¦d Ø« c. Income and Expense are translated at quarterly oØj¦Ûle¥dØØÎÛz«}¦} ØØj¦lÎ DYHUDJHUDWHQRWLÀHGE\)('$,DWWKHHQGRIHDFK vÛ }Û|d Ø«j¦Ûl|fd{j¦id quarter. dyj¦}«|ÎÛ j¦ÛlÛÎØye||«j¦ G 7KHUHVXOWLQJH[FKDQJHGLIIHUHQFHVDUHQRWUHFRJQL]HG |ØÎ|Øj¦dlij¦kØCCzÛ®¦} Ø as income or expense for the period but accumulated dØ|{ «klÎ in a separate account ”Foreign Currency Translation Reserve” till the disposal of the net investment.

222 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

{}¡{ )RUZDUG([FKDQJH&RQWUDFWV k |j¦ ii Øy ãØÛ zÛ ® }Û m In accordance with the guidelines of FEDAI & provisions of AS-11, Foreign exchange spot and forward contracts iÜ¦e¥vÛide¥ j¦z|z¥«j¦d|}ÎØ{Ø j¦ outstanding as at the balance sheet date and held for zÛ ® Îq }¢t i z zd« j¦ Ø|} j¦Û trading, are marked to market at the closing spot and Øyj¦iÜ¦e¥vÛide¥¸d{oØ zÎqi z q IRUZDUG UDWHV UHVSHFWLYHO\ QRWLÀHG E\ )('$, DQG DW zd«i d|Ø}}§Ø zd«j¦e|t}tz«} interpolated rates for contracts of interim maturities. qã}z¥qØÎiØz¤¸}°}ØitÛij¦ The MTM values thus obtained are discounted to arrive t¤tj¦Øj¦qØÎØj¦itÛij¦Ø¥| lØj¦ at present value of MTM. This MTM is used to revalue the spot and forward transactions on PV basis. The qj¦eitÛij¦}ÛÛd{}}¢tdz Î« UHVXOWLQJ)RUZDUG9DOXDWLRQSURÀWRUORVVLVLQFOXGHGLQ j¦}|¥ j¦Øj¦|ÎØ}°§Øj¦lÎej¦}¦} WKH3URÀW /RVV$FFRXQW z j¦|ãdyÎ|j¦ãi Î|kØ« 7$;(621,1&20( j¦qØÎ This comprises of provision for Income tax and d~ j§ ¢ GHIHUUHG WD[ FKDUJH RU FUHGLW UHÁHFWLQJ WKH WD[ e«ãØÛ |zÛ kj¦ y de¥Ûide¥ j¦ k j¦| effects of timing differences between accounting income and taxable income for the period) as |z vj¦d||{¥Ø ·d{j¦ikdØy determined in accordance with AS 22 (Accounting j¦ldj¦ Ûod|Øj¦«j¦}°ãj¦z¥ØÎi dj¦ for taxes on Income) issued by ICAI. Deferred tax j¦i}°{|dylØj¦dy¨¦vtÎàdylØ is recognised subject to consideration of prudence j¦j¦di j¦Ûf|z«j¦ {«qj¦Ûij¦ in respect of items of income and expenses those z}|{¥ØÎØÛÎdqij¦dyd{j¦}ØÛ¥d{« arise at one point of time and are capable of reversal «}°ØØ¥|lÎàj¦}¥|ÛØj¦d{{Û|Î «qØ in one or more subsequent periods. Deferred tax assets and liabilities are measured using enacted ÎdylØj¦dØ«i zØd«j¦Ûl|d{|Øj¦ tax rates expected to apply to taxable income in the z«}f|Õj¦Ûd}Øz«}j¦ÛqØÛÎq|Õ« years in which the timing differences are expected to d Ø«j¦¥j¦|j¦Û ã|ÎØÛÎj¦j¦Ûz««}Ø¥| be reversed. The effect on deferred tax assets and j¦dylØj¦zØd«i dØ«}Îi}°ãj¦fd{ liabilities of a change in tax rates is recognised in the j¦Ûd}q«i}Ø¥|j¦lj¦lÎj¦ income statement in the period of enactment of the d{}Î «qØÎ change. ($51,1*63(56+$5( ~±Ù dq¦}¢ The Parent reports basic and diluted earnings per àj¦¸d}| j¦i vetv}°Øe¥§tÛdq¥|j¦ equity share in accordance with the AS 20 (Earnings ãØÛ|zÛkj¦ y|j¦e {«qÛk|j¦ per Share) issued by the ICAI. Basic earning per equity }°Ødq¥| j¦d|}t¥j¦lÎ j¦}°Ø share has been computed by dividing net income by the weighted average number of equity shares dq¥|j¦Ûl||dj¦d{j¦i j¦ãØdØ outstanding for the period. Diluted earning per equity e¥§tÛ«j¦Û kãqØj¦Ûle¥Îvetv}°Ø share has been computed using the weighted average dq¥|j¦Ûl||dj¦fd{j¦i j¦ãØ number of equity shares and dilutive potential equity e§tÛ«i ed{j¦z|vtve¥§tÛ«j¦Û shares outstanding during the period. k«l|j¦Ûle¥Î 3529,6,216 &217,1*(17 /,$%,/,7,(6 $1' ~±|}dj§j§{Ùi¡dj§j§dÙ¡¢ &217,1*(17$66(76 As per the AS 29 (Provisions, Contingent Liabilities ãØÛ|zÛkj¦ y|j¦e {«qÛk|j¦ and Contingent Assets) issued by ICAI, the Parent dj¦j¦zØd«i dj¦j¦dØ«j¦i}°{| UHFRJQL]HV SURYLVLRQV RQO\ ZKHQ LW KDV D SUHVHQW j¦d| àj¦¸dj¦j¦zØd«i dj¦j¦dØ«j¦ obligation as a result of a past event, it is probable that i}°{|lØ«Îe¥j¦Ûmt|fØ}||ÎiØ¥|zØ DQRXWÁRZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQHÀWV j¦ij¦lÎÎ ãÎj¦ezØj¦|Øj¦i will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be dy¥j¦ {|«j¦Ûdj¦ØÎdØ ezØÎØj¦ made. Ç|Û j¦|j¦qj¦ Contingent liability is disclosed unless the possibility of q Øj¦dy¥j¦ãj¦ {|«j¦dftªj¦Û ã|d}°Ø DQRXWÁRZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQHÀW |ÎØ Øj¦dj¦j¦zØd«j¦}°j¦tÛj¦j¦qØÎ is remote. dj¦j¦dØ« j¦ ÏÛ } |ÎÛ | l &RQWLQJHQW$VVHWVDUHQRWUHFRJQL]HGLQWKHÀQDQFLDO statements since this may result in the recognition of Î§«j¦ÎiÛdj¦|{¥j¦Ü¦ }Îj¦ØÎ income that may never be realised. qj¦ÛÛ|ÎÛ Îj¦ØÛÎ

223 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 d}oÜ¢o¦j§~Ù¦j§ij§ÙÐÜ ¬ ÜiÝ§i ~ }t Schedule - 19 - Notes on the Consolidated Financial Statements (CFS) for the year ended 31st March 2019 j¦ØÏÛCj¦ØÏÛ«j¦ik j¦| }Cj¦ØÏÛ«j¦ik j¦| |j¦CÎl««| j¦ik j¦| |j¦dC §Øfµ« qj¦iÏÛ}tÕl }k j¦||j¦j¦d|}Øj¦iliÎà The CFS are prepared in accordance with Accounting Standard 21 on “Accounting for Consolidated Financial Statements”, Accounting Standard 23 on Accounting for “Investment in Associates” and Accounting Standard 27 on “Financial Reporting of Interest in Joint Venture”. Ïj§j§ÙÐÜ ÜiÝ§i ¬áj§d£ÝØ§v× { 1. The Consolidated Financial Statements (CFS) d }}kÙd}¡l¬Ïl¡¨Ùf¶¬j§ of the Group comprise the results of the Bank of ~ Ïá¢ Baroda (Parent) and the following Subsidiaries/ Associates/Joint Ventures: 1.1 d| l j¦| Name of Subsidiaries zqÎ Øj¦}°ØØ µ|Î Percentage of Country of Ownership as on 31.03.19 31.03.18 Incorporation zÛd| l Domestic Subsidiaries i àj ¦l a) Banking: L z||ÛØ àj¦ i) The Nainital Bank Ltd. ãØIndia 98.57 98.57 Û l àj ¦l b) Non Banking: L ¢ j¦}tj¥¦t i) BOB Capital Markets ãØIndia 100.00 100.00 Ltd. LL ¢ }áe| ¢| ii) BOB Financial ãØIndia 100.00 100.00 tv }¥ ¢ Solutions Ltd (Formerly known as j¦v¤¥ BOB Cards Ltd.) LLL vÖzl v¥ iii) Baroda Global Shared ãØIndia 100.00 100.00 ¥}°ettv Services Ltd. LY vÖz|t§|qÛq iv) Baroda Sun ãØIndia 100.00 100.00 tv Technologies Ltd.

Y vÖzit|q«t v) Baroda Asset ãØIndia 100.00 49.00 e vtv Management India Limited

YL vÖztÐtÛe v}°et vi) Baroda Trustee India ãØIndia 100.00 49.00 tv Private Limited

224 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ú Consolidated Financial Statement

YLLL àj¦d¢Ü×¦ vÖz viii) Bank of Baroda (New |qÛ|vNew 100.00 100.00 |qÛ|v Zealand) Ltd. Zealand (ix) àj¦d¢Ü×¦ vÖz j¦ (ix) Bank of Baroda (UK) |etvj ¦lv 100.00 100.00 Ltd. United Kingdom Û l àj ¦l b) Non-Banking L ¢ j¦ i) BOB (UK) Ltd. |etvj ¦lv 100.00 100.00 United Kingdom LL vÖzj¦}tj¥¦t¤ ii) Baroda Capital l v/ Uganda 100.00 100.00 l v tv àj¦ Markets (Uganda) d¢Ü×¦ vÖzl v Limited. (Subsidiary tvj¦Ûd| lÛ of Bank of Baroda Uganda Ltd.)

ÎlÛ¡ 1.2 Associates: j¦Ø ÏÛ } ÛiÜ¦i « ÎØ ÎlÛ The particulars of Associates considered in the CFS are as under: ej¦e«j¦||kØÎà¡ Îl j¦| Name of Associates zqÎ yj¦Î µ|Î Parent’s ownership Country of Interest (%) as on Incorporation 31.03.19 31.03.18 i e|vq àj¦tv a) Indo Zambia Bank Limited q Zambia 20 20 Û Ûl°Û àj¦ b) Regional Rural Banks L vÖzfÏ}°zl°Û àj¦ i) Baroda Uttar Pradesh ãØIndia 35 35 Gramin Bank LL vÖzqy|Ûl°Û àj¦ ii) Baroda Rajasthan ãØIndia 35 35 }¥ØÛ¥ vÖz qy| l°Û Kshetriya Gramin Bank (Erstwhile Baroda àj¦ Rajasthan Gramin Bank) LLL vÖzlqØl°Û àj¦ iii) Baroda Gujarat Gramin ãØIndia 35 35 Bank §Øfµ¡ 1.3 Joint Ventures:

§Øfµ|Name of Joint Ventures: zqÎ µ|Î yj¦Î Country of Incorporation Percentage of Ownership as on 31.03.19 31.03.18 i e vÜ¦t¥eÜ¦e j¦}|Û ãØIndia 44 44 a) India First Life Insurance Company Ltd. Û e ve t|| àj¦ ÛiovÛ Malaysia 40 40 b) India International Bank (Malaysia) Bhd. Û e ve Ý¦v t ãØIndia 40.99 36.86 c) India Infradebt Ltd.

2. Îl«j¦|j¦ 2. Particulars of the Investment in Associates: (` j¦vÖ / ` in Crore) ¨¦ Sr. Particulars 31.03.2019 j¦ 31.03.2018 j¦ No. As on As on 31.03.2019 31.03.2018 i Îl««|j¦ÛlØ a. Cost of Investment in Associates 208.39 261.82 Û f}¥§Ø i «d{l°Î} b. Goodwill on acquisition included in (a) -- -- | above

225 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

¨¦ Sr. Particulars 31.03.2019 j¦ 31.03.2018 j¦ No. As on As on 31.03.2019 31.03.2018 Û f}§Ø i «d{l°Î}}°Ø c. Capital reserve on acquisition included - 25.27 } qÛ in (a) above vÛ }|¥ j¦|dØ|{i zÛ d. Additions on account of Revaluation 2.20 2.48 ®}°Ø|{j¦j¦}{¥| reserve & Foreign Currency Translation reserve e¥ d{l°Îf}|ØkdØ} qÛ e. Share of post acquisition profits (Net) of 807.36 729.46 j¦ã | j¦d Goodwill/ Capital Reserve i}á o¥j¦| i ÛÛvÛe¥ f. Investment as at 31st March (a-b-c+d+e) 1,017.95 968.49

qÛ ãØ«| g. Investment in India 917.19 869.87 io ãØj¦ Î| h. Investment outside India 100.76 98.62 de¥ j¦ qÛio i. Total (g + h) 1,017.95 968.49

d}¡l¬Ïl¬j§ÐÜ ¢ 3. Financial Statements of Subsidiaries / Associates: d| l« §Ø fµ« i Îl« j¦ k}ÛØ ÏÛ 3.1 The audited financial statements of the fÛ}Ù¥t lØÛkØj¦Øj¦lÎqj ¦}|Û Subsidiaries, Joint Ventures and Associates have been drawn up to the same reporting date àj¦d¢Ü×¦ vÖz j¦iØj¦Ûle¥ØÛkÎàdy¥Ø¤o¥ as that of the Parent i.e. 31st March, 2019 except j¦||kØj¦âvÖj¦ àj¦d¢Ü¦ vÖz l v for Bank of Baroda (Uganda) Ltd (including tv ej¦Û}¥ØÛd| lÛ vÖzj¦}tj¥¦t¤ its wholly-owned subsidiary Baroda Capital l v tvÎØ àj¦d¢Ü¦ vÖz j¦| tv àj¦ Markets (Uganda) Ltd.), Bank of Baroda (Kenya) d¢Ü¦ vÖz m| tv àj¦d¢Ü¦ vÖz Ø q| tv Ltd., Bank of Baroda (Ghana) Ltd., Bank of e v e t|| àj¦ ÛiovÛ de¥de¥ Ûi Û Baroda (Tanzania) Ltd., India International Bank de v^ àj¦tvq|j¦yz (Malaysia) Bhd. (IIBMB) and Indo Zambia Bank Ltd. which have been drawn up to 31st December, Øj¦Øj¦liÎqj¦}° {|¸}°Øj¦ 2018. As certified by the Management, there are lÎq|Ûo¥Øj¦j¦Ûd{j¦z| no significant transactions or other events during j¦e¥ÎØ}¥|z|d|mt|i£|ÎÛ Îàqj¦if« 1st January, 2019 to 31st March, 2019 requiring q|j¦Ûdj¦ØÎ adjustment therein. Î j¦ o ÏÛ ¥ j¦ j¦Ø ÏÛ « « z 3.2 The Consolidated financial statements for the ||ÛØ àj¦ tv e v Ü¦t¥ eÜ¦ e « j ¦}|Û current financial year of the Group include tv àj¦ d¢Ü¦ vÖz |qÛàv tv àj¦ d¢Ü¦ unaudited financial statements of The Nainital Bank Ltd, India First Life Insurance Company vÖz |zzdt ltv àj¦d¢Ü¦ vÖz j¦ Ltd, Bank of Baroda (New Zealand) Ltd, Bank of tv Ûd Û j¦ tv d e v e t|| Baroda (Trinidad &Tobago Ltd), Bank of Baroda àj¦ Îz qÛ j¦dk}ÛØÏÛ (UK) Ltd., BOB (UK) Ltd and India International Îàq|j¦}j¦e¥||ÎÛ kØ Bank Malaysia Berhad (JV), the results of which o¥j¦}Ø¥j¦i||kØmÎj¦ are not material. j ¦}|«j¦kØj ¦}|Ûd{|j¦Û{ j¦d Øl¥Ø 3.3 The accounts of the following domestic subsidiaries st ãØÛ| j¦dÎk}Ûj¦j¦Ût}}«j¦d{Û|Îà¡ for the year ended 31 March, 2019 are subject to the comments of Comptroller & Auditor General of India L ¢ j¦}tj¥¦t¤ under Section 143(6) of the Companies Act, 2013: LL Ûd ÛÜ¦e|«¢| }¥ØÛ¥ ¢ j¦v¤¥ i. BOB Capital Markets Ltd. tv ii. BOB Financial Solutions Limited (Formerly LLL vÖzl v¥¥q known as BOB Cards Ltd.) LY vÖz|t§|¢qÛq iii. Baroda Global Shared Services Ltd. Y vÖzit|q«te v iv. Baroda Sun Technologies Ltd. v. Baroda Asset Management India Ltd YL vÖztÐtÛe v}°et vi. Baroda Trustee India Private Ltd ¥j¦z|Ø j¦ àj¦|« vÖzit 3.4 During the year, on Septmber 28, 2018, the bank |q«t e v tv }¥ « vÖz }| it has acquired additional 51% share in Baroda

226 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ú Consolidated Financial Statement

|q«t }¥« vÖz}|dt|q«tj ¦ Asset Management India Ltd (Formerly Baroda Pioneer Asset Management Co. Ltd) and Baroda vÖztÐtÛe v}°ettv }¥« vÖz}¢| Trustee India Private Ltd (Formerly Baroda tÐtÛj ¦}|Û}°ettv «dØ§Øj¦ Pioneer Trustee Co. Pvt. Ltd) Accordingly these d{l°Îj¦ÎØz|o¥j¦Îj ¦}| compaines are wholly owned subsidiaries of the àj¦j¦Û}¥ØÛd| l Î }Î ·j ¦}|« Bank as at March 31, 2019 (Previously these were «j¦ÛØj¦yÎlÛj ¦}| yÛ the Associate companies with holding of 49% in respective company) Îj¦ d §Ø fµ« j¦ { « }°j¦tÛj¦ 3.5 The disclosures in respect of subsidiaries and joint ventures are given to the extent details available }° {| j¦ } f} { Û Øj¦ zi li Îà with the management. In view of the management }° {|j¦Ûte| «j¦f} {|Î| àj¦j¦ non availability of such details would not materially j¦ØÏÛ««}°j¦tÛj¦j¦}°ãØ|ÎÛ impact disclosure under the consolidated financial j¦l statements of the bank 4. Capital Reserves ~¡qÜlÙ~± Ù}|¡ Capital Reserve includes appreciation arising on } qÛlØ}°Ø|{««do }Ï«j¦}|¥ j¦|}Îe¥ revaluation of immovable properties, profit on sale of ·iotÛi}°ØãØ«j¦Û ¨¦Û}}°}Øã {j¦ HTM securities (net of tax and transfer to Statutory }°Ø|{j¦ij¦dd Øj¦| dãØj¦ Reserve) and amount subscribed by Government of India under the World Bank’s Scheme for Export ¸Ç àj¦j¦Ûq|j¦d Øl¥Ø|¥Øj¦}q|d« Development Projects / Industrial Export Projects for m{ Ø j¦ fµl d| j¦ i dµlj¦ j¦ small / medium scale industries and others. }q|d«j¦izØÎ 5. Provision for Taxes j§ ¬j§i~±|} Provision for Taxes has been arrived at after due d}Ûd{j¦«j¦|¥dÎj¦«j¦ÛÎ}{Øo consideration of decisions of the appellate authorities j¦|j¦ zj¦«j¦i}°{|j¦lÎ and advice of counsels. 6. Draw Down from Reserves ~± Ù}|¬¬vÑvf} During the Financial Year 2018-19, there is draw ÏÛ¥j¦z||}°ØkØj¦vÖj¦ down of Rs. 88.88 crore from the Investment Reserve vÐvf|Î yo¥| Account (March 31, 2018: Rs Nil). dz ~±|}Üj§ 7. Floating Provision – (` j¦vÖ / ` in Crore) Particulars o¥j¦ o¥j¦ }Ø¥j¦i }Ø¥j¦i¥ For the year For the year ended March 31, ended March 31, 2019 2018 i ªt l}°{|kØ«}° ãj¦ a. Opening balance in the floating 478.27 478.27 provisions account Û k¥«j¦iliªt l}°{|«j¦Û b. The quantum of floating provisions 6.80 Nil made in the accounting year Û k ¥ j¦ z| j¦i li vÐ vf| c. Amount of draw down made during Nil Nil j¦Û the accounting year vÛªt l}°{|kØ«d Ø d. Closing balance in the floating 485.07 478.27 provisions account ãØÛ^¥ àj¦| ªt l}°{|«j¦f}lj¦f te§j¦}°q| l RBI vide Circular No. DBR.No.BP.BC.79/21.04.048/2014-15 Ü×¦ j¦ }} k vÛ Ûd Û}Û ÛÛ dated March 30, 2015 on 'Utilization of Floating Provisions/ z| j¦o¥j¦qi àj¦«j¦f|j¦¸yz j¦{Ø Counter Cyclical Provisioning Buffer' has allowed the banks, to ªt l}°{|ÛÛ}Û Ûj¦}°ØØØj¦j¦f}l àj¦j¦|zj¦ v utilize up to 50 per cent of Floating Provisions CCPB held by them as on December 31, 2014, for making specific provisions ¸d|zØ|ÛØj¦d|l|}zj¦dØ« i|}Ûi j¦it for Non-Performing Assets (NPAs) as per the policy approved }°{|j¦|j¦Ûd|ØzÛÎ¥j¦z| àj¦|i|}Ûij¦it}°{| by the Bank's Board of Directors. During the year, Bank has j¦iiÛj¦f}l|ÎÛ j¦Î not utilized such amount for making specific provision for NPAs ~±|}d dj§j§Ùd¬j§{ 8. Break up of Provisions and Contingencies j¦ØãÎ|kØ«z¥iq|}°{|«ddj¦j¦Ød« The break-up of provisions and contingencies appearing j¦z |||Îà¡ in consolidated Profit & Loss Account is as under:

227 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` j¦vÖ / ` in Crore) Particulars o¥ lØ¥ Current Year Previous Year t¤tkØvlid{hj¦ij¦ili Bad debts written off / Provision made 12,444.01 14,503.62 }°{| towards NPA }|ÕoØ|j¦df}|j¦kØ««âvzi Provision towards sacrifice of interest in -121.02 -168.23 li qj¦i}°{| Restructured standard and sub-standard accounts zÛqk}° {|j¦i}°{| Provision for Country Risk Management 3.12 -22.34 j¦«j¦i}°{| ylØj¦Ø Provision for taxes (including deferred 437.51 -193.62 taxes) |}¾j¦i}°{| Provision for depreciation on investment 165.14 768.42 |j¦dØj¦i}°{| Provision for standard assets -0.64 -360.59 d| Others 1,503.42 946.36 ˆºÅ¥¸ Total 14,431.54 15,473.62 ãØÛ|zÛkj¦ y| de¥Ûide¥ ¸qÛk j¦| 9. Disclosure in terms of Accounting Standards (AS) issued by the Institute of Chartered Accountants of |j¦« ii j¦d|}}°j¦tÛj¦ India (ICAI). d{j¦i|ãÎ|k j¦||ÛØ« k j¦| 9.1 Net Profit or Loss for the period, Prior Period Items |j¦ «fj¦}¥d{j¦Ûz«d}Ø¥| and Changes in Accounting Policies (Accounting Standard-5) ÏÛ¥j¦z|k j¦||ÛØ«j¦e¥}Ø¥| No change in accounting policy during the financial |ÎÛ Î year 2018-19. j¦¥oÛã k j¦||j¦ 9.2 Employee Benefits (Accounting Standard-15) , }ãØ ã q| |{lØ {Ø }«| I. Defined Benefit Plans (Funded Obligation - ât¤tÛ|j¦zÛj¦dl°otÛ Pension, Leave Encashment and Gratuity) a) Change in present value of Defined Benefit i }ãØã {Øj¦Ø¥|«}Ø¥| Obligation (` j¦vÖ / ` in Crore) Particulars }«| ât¤tÛ|j¦zÛj¦ l°otÛ Pension Leave Encashment Gratuity o¥ o¥ o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ j¦ j¦ As on As on As on As on As on As on March 31, March 31, March 31, March 31, March March 2019 2018 2019 2018 31, 2019 31, 2018 d ãj¦}ãØã {Ø Opening Defined Benefit Obligation 13,604.50 13,032.55 21.37 21.89 1,726.97 1,390.17 qvÖ«¡ qlØ Add: Interest Cost 1,005.03 967.99 1.66 1.64 120.20 97.25 qvÖ«¡lØlØ Add : Past Service Cost 0.00 0.00 0.00 0.00 0.00 398.19 qvÖ«¡olØ Add: Current Service Cost 1,099.46 1,173.04 1.00 0.97 106.39 108.15 mti ¡}°zÏã Less: Benefits Paid 1,107.69 963.65 3.77 2.29 341.54 258.86 qvÖ«¡ {Ø}i§oãÎ| Add: Actuarial loss/ gain(-) on obligation -646.77 -605.43 -0.54 -0.84 29.48 -7.93 d Ø}ãØã {Ø Closing Defined Benefit Obligation 13,954.53 13,604.50 19.72 21.37 1,641.50 1,726.97 Û foØj¦Ûq|dØ«}Ø¥| b) Change in Fair value of Plan Assets (` j¦vÖ / ` in Crore) Particulars }«| ât¤tÛ|j¦zÛj¦ l°otÛ Pension Leave Encashment Gratuity o¥ o¥ o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ j¦ j¦ As on As on As on As on As on As on March 31, March 31, March 31, March 31, March March 2019 2018 2019 2018 31, 2019 31, 2018 q|dØ«j¦d ãj¦ Opening Fair Value of Plan Assets 13,255.34 12,780.05 24.14 21.81 1,233.63 1,282.40 foØ qv«q|dØ«}d}Ø Add- Expected Return on Plan 1,018.83 1,022.03 1.55 1.72 94.55 102.72 d Assets

228 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ú Consolidated Financial Statement qv«lz| Add- Contributions 352.90 292.30 0.10 2.90 205.94 115.79 mti }°zÏã Less- Benefits Paid 1,140.70 963.65 3.77 2.29 341.53 258.86 qvÖ« {Ø}i§oã Add- Actuarial gain/(-)loss 122.73 124.61 -0.16 0.00 41.36 -8.42 Î| d Øq|dØ«j¦foØ Closing Fair Value of Plan Assets 13,609.10 13,255.34 21.86 24.14 1,233.94 1,233.63 Û Ø|}«|Ø}°}Ø c) Amount recognized in the Balance Sheet (` j¦vÖ / ` in Crore) Particulars }«| ât¤tÛ|j¦zÛj¦ l°otÛ Pension Leave Encashment Gratuity o¥ o¥ o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ j¦ j¦ As on As on As on As on As on As on March 31, March 31, March 31, March 31, March March 2019 2018 2019 2018 31, 2019 31, 2018 D d Ø}ãØã {Ø a) Closing Defined Benefit 13,954.53 13,604.50 19.72 21.37 1,641.51 1,726.98 Obligation E q|dØ«j¦d Ø b) Closing Fair Value of Plan 13,609.10 13,255.34 21.86 24.14 1,233.94 1,233.63 foØ Assets F d Ø c) Difference 345.43 349.16 -2.14 -2.77 407.58 493.35 G l|}°}Ød ØzØ d) Unrecognized transitional 0.00 0.00 0.00 0.00 0.00 291.23 liability H Ø|}«|Ø}°}ØzØ e) Liability Recognized in the BS 345.43 349.16 -2.14 -2.77 407.58 202.12 vÛ ãÎ|kØ«|Ø}°}Ø d) Amount recognized in the Profit & Loss Account (` j¦vÖ / ` in Crore) Particulars }«| ât¤tÛ|j¦zÛj¦ l°otÛ Pension Leave Encashment Gratuity o¥ o¥ o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ j¦ j¦ }Ø¥ }Ø¥ }Ø¥ }Ø¥ }Ø¥ }Ø¥ j¦i j¦i j¦i j¦i j¦i j¦i For the For the For the For the For the For the year year year year year year ended ended ended ended ended ended March 31, March 31, March 31, March 31, March March 2019 2018 2019 2018 31, 2019 31, 2018 D olØ a) Current Service Cost 1,099.46 1,173.04 1.00 0.97 106.40 108.14 D lØlØ a) Past Service Cost 0.00 0.00 0.00 0.00 0.00 398.19 F qlØ c) Interest Cost 1,005.03 967.99 1.66 1.64 120.20 97.25 G dqØdØ«}d}Ød d) Expected Return on Plan Assets 1,020.81 1,022.03 1.97 1.72 95.26 102.57 H i§oÎ|ã e) Net Actuarial Loss/gain(-) -766.45 -730.05 -0.12 -0.84 -11.19 0.35 f) Transitional liability recognized 0.00 0.00 0.00 0.00 0.00 291.23 I ¥«|Ø}°}Ød ØzØ in the year ãÎ|kØ«|Ø}°}Ø Expenses Recognized in P&L 317.23 388.95 0.57 0.05 120.15 210.13 e¥ }° }i§oiiq }| e) Principal Actuarial Assumptions Particulars }«| ât¤tÛ|j¦zÛj¦Leave l°otÛ Pension Encashment Gratuity o¥ o¥ o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ j¦ j¦ }Ø¥ }Ø¥ }Ø¥ }Ø¥ }Ø¥ }Ø¥ j¦i j¦i j¦i j¦i j¦i j¦i For the year For the year For the year For the year For the year For the year ended March ended March ended March ended March ended March ended March 31, 2019 31, 2018 31, 2019 31, 2018 31, 2019 31, 2018 t¤tz Discount rate 7.60% - 7.71% 7.60% 7.75% 7.35% - 0% -7.75% 7.70% -7.75% 7.79% Ø|·z Salary Escalation Rate 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% -6.00% -6.00% -10.00% -6.00% itÐÛ|z Attrition Rate 2.00% 2.00% 2.00% 2.00% 2.00% - 2.00% - 15.00% 15.00% q|dØ«}d}Ødz Expected Rate of Return on plan Assets 7.50% - 8.00%- 7.00% 8.21% 7.50% - 8.00%- 7.70% 8.75% 7.70% 8.35%

229 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

,, }ãØ ã q|i l |{lØ {Ø ¡ oØ }°Ø}Ø¥ II. Defined Benefit Plans (Unfunded Obligation): d|}yØ {j¦Ûât¤tÛ l°otÛddØ§Ø|Ï Accumulating Compensated Absences (Privilege Leave), Gratuity & Additional Retirement Benefits ã id Û (ARB) ||Øj¦ àj¦¸|§ØØ i§odÛ¸i§oi| The following table sets out the status of Accumulating j¦d| oØ}°Ø}Ø¥d|}yØ {j¦Ûât¤tÛ l°otÛd Compensated Absences (Privilege Leave), Gratuity & dØ§Ø|Ïã id Û j¦ÛyØj¦z¥ØÛÎ¡ ARB as per the actuarial valuation by the independent Actuary appointed by the Bank:- i zØj¦Ûd ãj¦}Ø}q| a) Reconciliation of opening and closing balance of liability (` j¦vÖ / ` in Crore) Particulars ât¤tÛ|j¦zÛj¦Leave l°otÛ id Û Encashment Gratuity ARB o¥ o¥ o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ j¦ j¦ As on As on As on As on As on As on March 31, March 31, March 31, March 31, March March 2019 2018 2019 2018 31, 2019 31, 2018 d ãj¦}ãØã {Ø Opening Defined Benefit Obligation 880.92 908.82 2.02 1.54 331.05 346.81 qv« qlØ Add- Interest Cost 62.17 64.89 0.17 0.12 23.42 23.92 qv«olØ Add- Current Service Cost 50.48 48.50 0.42 0.27 9.85 10.56 qv«lØlØ Add- Past Service Cost 0.00 0.00 0.00 0.17 0.00 0.00 mti }°zÏã Less- Benefits Paid 142.41 131.00 0.10 0.23 53.78 55.68 qv«i§oÎ|ã Add- Actuarial loss/gain(-) on obligation 79.23 -10.29 0.02 0.16 -17.75 5.44 d Ø}ãØã {Ø Closing Defined Benefit Obligation 930.39 880.92 2.53 2.02 292.79 331.05 Û ãÎ|kØ«|Ø}°}Ø b) Amount recognized in the Profit & Loss Account (` j¦vÖ / ` in Crore) Particulars ât¤tÛ|j¦zÛj¦Leave l°otÛ id Û Encashment Gratuity ARB o¥ o¥ o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ j¦ j¦ }Ø¥ }Ø¥ }Ø¥ }Ø¥ }Ø¥ }Ø¥ j¦i j¦i j¦i j¦i j¦i j¦i For the For the For the For the For the For the year ended year ended year ended year ended year ended year ended March 31, March 31, March 31, March 31, March 31, March 31, 2019 2018 2019 2018 2019 2018 i olØ a) Current Service Cost 50.48 48.50 0.42 0.27 9.85 10.56 Û lØlØ b) Past Service Cost 0.00 0.00 0.00 0.17 0.00 0.00 Û qlØ c) Interest Cost 62.17 64.89 0.17 0.12 23.42 23.92 vÛ |i§oÎ|ã d) Net Actuarial Loss/gain(-) 79.23 -10.29 0.02 0.16 -17.75 5.44 ãÎ|kØ«|Ø}°}Ø Expenses Recognized in P&L 191.88 103.10 0.61 0.72 15.52 39.92 Û Ø|}«|Ø}°}ØzØ dØ j¦Ûd ãj¦}Ø c) Reconciliation of opening and closing liability/ }q| (assets) recognized in the Balance Sheet (` j¦vÖ / ` in Crore) Particulars ât¤tÛ|j¦zÛj¦Leave l°otÛ id Û Encashment Gratuity ARB o¥ o¥ o¥ o¥ o¥ o¥ j¦ j¦ j¦ j¦ j¦ j¦ As on As on As on As on As on As on March 31, March 31, March 31, March 31, March March 2019 2018 2019 2018 31, 2019 31, 2018 i d ãj¦}ãØã {Ø a) Opening Defined Benefit Obligation 880.92 908.82 2.02 1.54 331.05 346.81 Û f}§Ø} b) Expenses as above 191.88 103.10 0.61 0.72 15.52 39.92 Û }°zÏã c) Benefit paid 142.41 131.00 0.10 0.23 53.78 55.68 vÛ Ø|}«|Ø}°}Ø d) Net Liability Recognized in the 930.39 880.92 2.53 2.02 292.79 331.05 |zØ Balance Sheet

230 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ú Consolidated Financial Statement

vÛ }° }i§oiiq }| d) Principal Actuarial Assumptions Particulars ât¤tÛ|j¦zÛj¦Leave l°otÛGratuity id ÛARB Encashment o¥ o¥ o¥ o¥ o¥ o¥ j¦}Ø¥ j¦}Ø¥ j¦}Ø¥ j¦}Ø¥ j¦}Ø¥ j¦}Ø¥ j¦i j¦i j¦i j¦i j¦i j¦i For the year For the year For the year For the year For the year For the year ended March ended March ended March ended March ended March ended March 31, 2019 31, 2018 31, 2019 31, 2018 31, 2019 31, 2018 t¤tz Discount rate 7.20%-7.50% 7.71% -7.80% 7.20% 7.80% 7.70% 7.71% Ø|·z Salary Escalation 6.00%-9.00% 6.00%-9.00% 6.00% 7.00% 6.00% 6.00% Rate itÐÛ|z Attrition Rate 2.00%-15.00% 2.00%-15.00% 14.00% 12.00% 2.00% 2.00% i§o i| « ã j¦ Ø| · j¦ The estimates of future salary growth factored in actuarial valuation take account of inflation, d||®Ü¦ÛØuØ}z||Ødql seniority, promotion and other relevant factors q«d}Ø¥d lqd|}° lj¦j¦j¦« such as supply and demand in the employment j¦{|kqØÎd|| ÎØzÛm¥j¦j¦ market. Such estimates are very long term and are Îàd|j¦tdØÛØj¦d|ãØØj¦ã} not based on limited past experience / immediate d{Ø|ÎÛ Îàd|ãq|ÎãÛ ØØÎàj¦ future. Empirical evidence also suggests that in very long term, consistent high salary growth ÎØ «lØfooØ|·z ã rates are not possible. The said estimates and |ÎÛ Îk}Ûj¦«|e|ÎÛ d j¦|dd||« assumptions have been relied upon by the j¦d{ |Î auditors. k¡v ~tÖl ii 9.3 Segment Reporting (AS – 17) k¡vj§Ü~Ïo} 1. Segment Identification I. Primary (Business Segment): The following are , ~±zj§ ~ k¡v ¢ }}kÙ k¡v áj§ j§ the primary segments of the Bank:- ~±zj§k¡vÏá i. Treasury LtÑq Ü The Treasury Segment includes the entire tÐqÛk v«|}t¥Ü¦dzÛ® investment portfolio and trading in foreign Ø}||j¦«|z|j¦ ÎtÐqÛ exchange contracts and derivative contracts. k v j¦ q « k ¦} |z| }o|« The revenue of the treasury segment }°}Ø j¦ ã Î| ÎØÛ Î d | primarily consists of fees and gains or losses from trading operations and interest income }t¥Ü¦}°}Ø qdÎ on the investment portfolio. LLj§~¦ tÏáj¡§l ii. Corporate / Wholesale Banking j¦¢}tÎ àj ¦lk v«j¦vÖ The Corporate / Wholesale Banking dfd{j¦j¦hj¦f{j¦Ø¥d«j¦Û segment comprises the lending activities of lØ{£Îà borrowers having exposure of Rs. 5.00 crore LLLk{ áj¡§l and above. iii. Retail Banking kz àj ¦l k v « j¦vÖ j¦ j¦ h j¦ f{j¦Ø¥d« j¦Û lØ{£ The Retail Banking Segment comprises of borrower accounts having exposure of less Îà than Rs. 5.00 crore. LYd}áj¡§l~ o} iv. Other Banking Operations }°yj¦k vj¦d Ø¥lØf}§Ø L LLL eØ Segments not classified under (i) to (iii) k vÎà above are classified under this primary ,,l ä lj§k¡v segment. L m }o| ki j¦¥ q|j¦ II) Secondary (Geographical Segment) }o|ãØ«ÎØÎ i) Domestic Operations - Branches/Offices having operations in India

231 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

LL zÛ}o|ki j¦¥q|j¦ ii) Foreign Operations - Branches/Offices }o| ãØ j¦ Î d q| zÛ having operations outside India and offshore àj ¦lej¦e«j¦}o|ãØ«ÎØÎ banking units having operations in India ,,, k¡v qÏ Ül±Ïj§¬ qj§~±Ù}|Ù III. Segment revenue represents revenue from j§ ÙÏ external customers. ,9 ddÙ¬d {Ùd¬j§d¡t} IV. Allocation of Income, Expenses, Assets and Liabilities q d j¦ Î àj ¦l }o| }°}Ø Øj¦ qj¦d{}d tØj¦qØ The interest income is allocated on the basis of actual interest received from wholesale banking ÎÎ àj ¦l}°}Ø qj¦j¦ q« operations. The total interest received less interest mtj¦t àj ¦l}o|«qqØÎ of wholesale banking is taken to retail banking Î àj ¦lt àj ¦lk v¸dq¥Ø q operations. Expenses not directly attributable are dj¦d{}Û{ ·|ÎÛ Î|j¦ allocated on the basis Interest income earned by d t|j¦qØÎkq|}o|} the wholesale banking / retail banking segment. kq|}o|}°}Ø}d{ØÎ Expenses of treasury operations are as per the details available from treasury operations. àj¦ « j¦Ø} dØ d zØi ÎØÛ Îà q|Î« The Bank has certain common assets and j¦Û ãÛ k v qvÖ |ÎÛ q j¦Ø Î d f|Î« liabilities, which cannot be attributed to any j¦Û«d tØãÛ|ÎÛ j¦qj¦Ø segment, and the same are treated as unallocated. k¡v¡¡|Üo} Segment Information älik¡v Part A – Business Segments (` j¦vÖ / ` in Crore) Business tÐqÛ j¦}¥tÎ àj ¦l t àj ¦l d| àj ¦l}o| j¦ k v Segments Treasury Corporate/ Retail Banking Other Banking Total Wholesale Banking Operations FY: 2018- FY: 2017- FY: 2018- FY: 2017- FY: 2018- FY: 2017- FY: FY: FY: 2018- FY: 2017-18 19 18 19 18 19 18 2018-19 2017-18 19 q Revenue 18,068.04 17,674.57 21,347.35 19,268.90 1,8901.97 15,072.43 2,475.94 20,32.73 60,793.30 54,048.63 } Result 2,481.88 29,73.81 -5,313.60 -4,312.81 6,980.90 1,591.76 284.59 438.17 4,793.77 690.93 d| tØko¥ Unallocated 3,256.15 2,771.65 Expense }o|lØ Operating 1,537.62 -2,080.72 ã Profit dj¦ Income taxes 437.51 -193.62 t ã Extra-ordinary -- Î| Profit/loss |ã Net Profit 1,100.10 -1,887.10 d|o| Other Information: l«tdØ Segment 2,43,216.70 2,78,779.59 3,63,662.75 3,17,156.04 1,96,365.87 1,34,709.23 4251.51 6,679.44 8,07,496.83 7,37,324.30 Assets d| tØ Unallocated 12,175.11 10,480.62 dØ Assets j¦dØ Total Assets 8,19,671.94 7,47,804.92 l«tzØi Segment 2,26,898.01 2,61,419.83 3,39,262.70 2,97,406.56 1,83,190.64 1,26,320.81 3,966.25 6,263.50 7,53,317.60 6,91,410.70 Liabilities d| tØ Unallocated 11,358.22 9,827.99 zØi Liabilities j¦zØi Total 7,64,675.82 7,01,238.69 Liabilities |qØ} qÛ Capital 16,318.69 17,359.76 24,400.06 19,749.48 13,175.22 8,388.42 285.26 415.94 54,179.23 45,913.60 Employed d| tØ Unallocated 816.89 652.63 j¦|qØ Total Capital 54,996.12 46,566.23 } qÛ Employed

232 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ú Consolidated Financial Statement

älÜä lj§k¡v Part B – Geographic Segments (` j¦vÖ / ` in Crore) Particulars zÛ}o| d|Ø¥tÐÛ}o| j¦ Domestic Operations International Operations Total FY: 2018-19 FY: 2017-18 FY: 2018-19 FY: 2017-18 FY: 2018-19 FY: 2017-18 q Revenue 53,003.41 47,797.77 7,789.89 6,250.86 60,793.30 54,048.63 dØ Assets 6,85,302.03 5,69,080.76 1,34,369.91 1,78,724.16 8,19,671.94 7,47,804.92 ¡¸~~±j§tÜj§ k¡j§}}j§ 9.4 Related Party Disclosures (Accounting Standard-18) , ·}«j¦|f|j¦ { I. Name of Related Parties & their relationship Îj¦ {Ø}¡ Related Parties to the Group: i ÏlÜ a) Associates L Ül±Üáj§ i) Regional Rural Banks vÖzfÏ}°zl°Û àj¦ 1. Baroda Uttar Pradesh Gramin Bank vÖzqy|Ûl°Û àj¦ 2. Baroda Rajasthan Kshetriya Gramin Bank vÖzlqØl°Û àj¦ 3. Baroda Gujarat Gramin Bank LL d} ii) Others e v^ àj¦tv 1. Indo Zambia Bank Limited Ü ¡¨Ùf¶ b) Joint Ventures e vÜ¦t¥eÜ¦e «j ¦}|Ûtv 1. India First Life Insurance Company Limited e ve t|| àj¦ ÛiovÛ 2. India International Bank (Malaysia) Bhd. e ve Ý¦vttv ` 3. India Infra debt Limited c) Key Management Personnel Ü ~±k~±¡|}j§¦j§ ( Û ` / Amount in ` ) ¨¦ | }z| }j¦ S. Name Designation Remuneration (`) No o¥ }â¥ Current Year Previous Year 1 Û}Ûiqj¦ }° {|zj¦i j¦d 33,45,175 31,51,937 Shri P S Jayakumar MD & CEO 2. Û j¦ÎØ j¦¥}j¦|zj¦ 55,24,659 30,20,936 Shri Mayank Mehta* Executive Director (up to 30.09.2018) 3. Ûdj¦j¦ll¥ j¦¥}j¦|zj¦ 46,38,773 28,24,124 Shri Ashok Kumar Garg* Executive Director (up to 30.06.2018) 4. ÛØÛ}}|l}Ø j¦¥}j¦|zj¦ 29,77,837 27,81,170 Smt. Papia Sengupta Executive Director 5. Û Øq| j¦¥}j¦|zj¦ 15,15,397 - Shri Shanti Lal Jain Executive Director (w.e.f. 20.09.2018) 6 Û¨¦zØ ÎkÛoÛ j¦¥}j¦|zj¦ 14,23,096 - Shri Vikramaditya Singh Khichi Executive Director (w.e.f. 01.10.2018) |Ïã *includes retirement beneÀts k«j¦t}}«}ãØÛ^¥ àj¦j¦}}j¦d| {Ø}tÛ¥ In terms of RBI circular on notes to accounts, key management personnel are whole time directors of Board for Related Party }°j¦tÛj¦j¦i v¥j¦}¥j¦j¦|zj¦}°k}° {|j¦¥j¦Îà Disclosure.

{Ø}«j¦ {«j¦e¥}°j¦tÛj¦j¦|j¦Ûdj¦Ø|ÎÛ No disclosure is required in respect of related parties, Îqj¦k j¦||j¦ ii j¦}j¦d|q which are “State-controlled Enterprises” as per | ØfµÎàyÎÛk j¦||j¦ ii j¦d|oâz paragraph 9 of Accounting Standard (AS) 18. Further,

233 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

j¦d|}°k}° {|j¦¥j¦df|j¦ {«Ø àj¦ in terms of paragraph 5 of AS 18, transactions in the nature of Banker-Customer relationship have not l°Îj¦j¦ Ûo|z|«j¦¦}j¦}°j¦tÛj¦|ÎÛ j¦lÎ been disclosed including those with Key Management ~±äÜ~t¥t ii Personnel and relatives of Key Management Personnel. }°ãÛ}t¤t}ili}|||Îà¡ 9.5. Operating Lease (AS-19) }°ãÛ }t¤t« « ¦} j¦¥ } d j¦¥oÛ Premises taken on operating lease are given below: |Îàq|j¦|Û|Ûj¦j¦| àj¦j¦Ûeoâ Operating leases primarily comprise office premises and staff residences, which are renewable at the option }Î of the Bank. L ||kØØj¦«oØd{j¦if|}« i). The following table sets forth, for the period indicated, j¦ãÛj¦ij¦ }°ØØÎàq|j¦}°ãÛ}t¤t´|ÎÛ the details of future rental payments on Premises j¦iqj¦Ø¡ taken on Non-Cancellable operating leases: (` j¦vÖ / ` in Crore) {Øi Obligations o¥j¦ o¥j¦ As on March 31, 2019 As on March 31, 2018 ij¦¥d{j¦|ÎÛ Not later than one year 63.42 37.88 ij¦¥d{j¦Õd{j¦|ÎÛ Later than one year and not 134.95 123.08 later than five years Õd{j¦ Later than five years 129.31 165.12 LL }°ãÛ}t¤t«j¦iãdÎ|kØ«|Ø}°}Ø}t¤t ii) Amount of lease payments recognized in the Profit & Loss Account for operating leases is Rs. 522.43 j¦ãlØ|j¦Ûj¦vÖ o¥¡ Crores (March 31, 2018: Rs 503.82 Crores). j¦vÖ¦} The Bank does not have any provisions relating to àj¦j¦}dj¦j¦j¦i {Øj¦e¥}°{||ÎÛ Î contigent rent. |Ûj¦kÛzj¦}dj¦·e}°j¦j¦j¦« The terms of renewal/purchase options and «}°oØØÕj¦d|¦}ÎØÎàxe|j¦««j¦e¥d|oØ escalation clauses are those normally prevalent }°Ø {zj¦ØÕ|ÎÛ ÎØÛÎà in similar agreements. There are no undue restrictions or onerous clauses in the agreements. ~±Ù d k¡j§}}j§ 9.6 Earnings per Share (Accounting Standard-20) àj¦k j¦||j¦}°Ødj¦d|¦}}°Ø The Bank reports basic and diluted earnings per equity share e§tÛ« |zÛd||dzq¥j¦ØÎ¥j¦z| in accordance with Accounting Standard 20 - “Earnings per j¦e§tÛ«j¦ÛãØdØ k¸j¦j¦ z Share”. “Basic earnings” per share is computed by dividing |ãj¦ãqØj¦j¦d}°Øj¦Ûl|j¦Û net profit after tax by the weighted average number of equity qØÛÎ shares outstanding during the year. Particulars o¥j¦ o¥j¦ }Ø¥j¦i }Ø¥j¦i¥ For the year For the year ended March ended March 31, 2019 31, 2018 ¥j¦d ã e§tÛ j¦Û k Number of share at the beginning of the year 2,64,55,16,132 2,30,41,59,598 ¥j¦z|qÛ Shares Issued during the Year - 34,13,56,534 ÕØ}«j¦Û k Number of share at the end of year 2,64,55,16,132 2,64,55,16,132 }°Ødj¦Ûl|j¦|j¦i}°§Ø Weighted Average Share used in computing 2,64,55,16,132 230,88,35,715 ãØdØ the basic earnings per shares ÕØ}e§tÛ«j¦Û ãØ k Potential no. of equity shares as at end of year* 42,85,59,286 - vtv}°Ødj¦j¦Ûl|j¦|j¦ Number of share used in computing the diluted 3,07,40,75,418 - i«j¦Û k earnings per shares j¦j¦ z|ã `j¦vÖ« Net profit after tax (Rs in Crores) 1,100.10 -1,887.10

234 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ú Consolidated Financial Statement

Particulars o¥j¦ o¥j¦ }Ø¥j¦i }Ø¥j¦i¥ For the year For the year ended March ended March 31, 2019 31, 2018 dq¥|}°Ø « Basic earnings per share (In Rs.) 4.16 (10.53) vtvd}°Ø « Diluted earning per share (In Rs.) 3.58 (10.53) d j¦Ø}°Ø « Nominal value per share (In Rs.) 2.00 2.00

dz|}°}Ø{|j¦}tãØj¦j¦qÛj¦i * Represents maximum number of shares that can qj¦|«j¦Ûd{j¦Ø kÎ d|oÛ be issued to the Government of India against Share application money received (Refer note no A-1 j¦d Øl¥Ø|t i} qÛj¦ zã¥« ãØ¥ Capital under Schedule 18). These shares have been j¦itÛ,} qÛj¦Ûl|j¦f´}°}Ødz| considered as a Potential Equity in terms of Accounting }oj¦|j¦iãØÛ^¥j¦} k Standard 20 “Earning per Share” based on the letter vÛ ÛdÛd Û}Ûi|d bearing No DBR.CO.BP No. 9771/21.01.002/2018- z| j¦¡j¦d{}e|«j¦k j¦| 19 dated 17.05.2019 from Reserve Bank of India to consider the Application Money received for the |j¦CC}°Ødq¥| j¦d| ãØe§tÛ purpose of calculation of Tier I Capital for the year. |lÎ 9.7 Accounting for Taxes on Income (Accounting d~ j§ ¬j§ik¡j§} k¡j§}}j§ Standard-22) i dylØj¦dØ a. Deferred Tax Assets (` j¦vÖ / ` in Crore) Particulars o¥j¦ o¥j¦ As on March 31, As on March 31, 2019 2018 dj¦d{|j¦ØÎØ ÎÛ¾Øy Difference between book depreciation 146.82 6.37 ¾j¦ Ûod Ø and Depreciation under Income Tax Act dj¦d{|j¦Û{ YLLL j¦ Deduction under section 36(1)(viii) of Nil Nil ØÎØj¦tØ the Income-tax Act, 1961 d| Others 4.86 3.61 zl{hi dl°«j¦i}°{| Provision for doubtful debts and 9,954.97 9,033.81 advances iotÛi}°ØãØ«}¾ Depreciation on HTM Securities Nil Nil dj¦d{|j¦Û{ i de¥i j¦ Amount Disallowable U/S 40(a)(ia) of 0.02 3.77 ØÎØd| the IT Act ât¤tÛ|j¦zÛj¦i Ø| {|ÎØ}°{| Provision for leave encashment & Wage 333.20 311.45 Revision zÛ® ÎdØ Foreign Currency Translation Reserve 138.15 69.08 |j¦ÛkÛz}d}{Ø t¤t Unamortized discount on purchase of Nil Nil Investment f}oØ q} Øz|ÎÛ Interest accrued but not due Nil Nil j¦¥oÛã Employee Benefit 4.23 Nil j§dzlÙj§ {Ù Total Deferred tax Asset 10,582.25 9,428.09

235 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Û dylØj¦zØi b. Deferred Tax Liabilities (` j¦vÖ / ` in Crore) Particulars o¦j§ o¦j§ As on March As on March 31, 2019 31, 2018 dj¦d{|j¦ØÎØ ÎÛ¾Øy Difference between book depreciation and 0.22 59.82 ¾j¦ Ûod Ø Depreciation under Income Tax Act dj¦d{|j¦Û{ YLLL j¦ Deduction under section 36(1)(viii) of the Income- 2,009.42 1,945.08 ØÎØj¦tØ tax Act, 1961 iotÛi}°ØãØ«}¾ Depreciation on HTM Securities Nil 97.07 f}oØ q} Øz|ÎÛ Interest Accrued but not due 1,128.72 937.21 zl{hi dl°«j¦i}°{| Provision for doubtful debts and advances Nil Nil dj¦d{|j¦Û{ i de¥i j¦ Amount Disallowable U/S 40(a)(ia) of the IT Act Nil Nil ØÎØd| ât¤tÛ|j¦zÛj¦ÎØ}°{| Provision for leave encashment Nil Nil zÛ® ÎdØ Foreign Currency Translation Reserve Nil 55.35 |j¦ÛkÛz}d}{Ø t¤t Unamortized discount on purchase of Investment Nil Nil d| Others Nil 0.38 j§dzlÙj§ {Ù Total Deferred tax Liability 3,138.36 3,094.91 }dzlÙj§ dÙ¡ Net Deferred tax Asset 7,443.89 6,333.18 ~ o}j§¡{j§ } ii 9.8 Discontinuing operations (AS-24) Îj¦d}|j¦ÛãÛ}o|j¦ zj¦|j¦Ûj¦e¥q| The group has no plan to discontinuing operations of |ÎÛ ÎqzØd«j¦}j¦zlÎddØ«j¦ any of its operations, which resulted in shedding of liability and realization of the assets and no decision ã|lÎØyl°}j¦Û}o|j¦ zj¦|j¦ has been finalized to discontinue an operation in its j¦e¥|¥|ÎÛ lÎqij¦e¥}°ã}vÖ entirety, which will have the above effect. dÙ¬j§ÜÏ} ii 9.9 Impairment of Assets (AS-28) àj¦j¦}° {|j¦Û«f¥j¦z|dØ«j¦Î|j¦ In the opinion of the Bank’s management, there is no j¦e¥ j¦Ø|ÎÛ Îq}k|j¦dØ«j¦ÛÎ| indication of impairment to the assets during the year to which Accounting Standard 28 – “Impairment of Assets” lÎØÎ applies. ~±|} dj§j§ {Ùi¡ d dj§j§ ¡~Ð 9.10 Provisions, Contingent Liabilities and Contingent ii ¢ Assets (AS-29): }°{|«j¦ÛdqÎÛ d|j¦i}°{|«j¦âvÖj¦ Movement of provisions (excluding provisions for others) (` j¦vÖ / ` in Crore) Particulars j¦||Ûdj¦j¦Øi Legal Cases / Contingencies o¦j§ o¦j§ ~Ù¦j§i ~Ù¦j§i For the year ended For the year ended March 31, 2019 March 31, 2018 z| j¦d}°j¦ Balance as on 1st April 2018 42.13 40.47 ¥j¦z|}°{|Ûj¦ØqØ Provided/ Adjustment during the year -8.13 1.63 z| j¦o¥j¦ Balance as at 31st March 2019 34.00 42.13 Îq|Ûd|ØØd«j¦ Timing of Outflow / uncertainties }~t}©§tÜj§ ~ Ïl¦} Outflow on settlement / crystallization

i d}Ûd{j¦«j¦|¥dÎj¦«j¦Î a) Provision for Taxes has been arrived at after j¦ zj¦j¦}°{|j¦lÎd|dØ« due consideration of decisions of the appellate authorities and advice of counsels. Tax paid in j¦d Øl¥Ødl°}}°zÏj¦ÉØ}j¦j¦tØÛ advance/tax deducted at source appearing under j¦vÖ o¥ ¡ j¦vÖ “other Assets” amounting to Rs 5,993.52 Crores } j¦Û l¤e q« j¦vÖ o¥ (March 31, 2018: Rs 2,131.19 Crores) is inclusive of ¡j¦vÖ ÎdyÎÛ àj¦ Rs 2,615.40 Crores (March 31, 2018: Rs 1,704.80

236 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ú Consolidated Financial Statement

¸ã|| j¦|Õj¦izØj¦ l« Crores) which represents amount adjusted by the j¦ { « ãl j¦ ãlØ| j¦| } ãl ¸ department / paid by the bank in respect of disputed tax demands for various assessment years. No qØÎ àj¦j¦o«e| l« provision is considered necessary in respect of the j¦ij¦e¥}°{|dj¦|ÎÛ Î§«j¦{Ø said demands, as in the bank’s view, duly supported }Îj¦j¦Ûd|j¦md« by counsels opinion and/or judicial pronouncements, j¦d| j¦|d{j¦Û¸j¦ili}{¥| additions / disallowances made by the assessing dÛj¦Ø||ÎÛ ÎlÛ officer are not sustainable. b) Such liabilities as mentioned at Serial No (I) to (VI) Û Ø|} j¦Û d|oÛ j¦Û ¨¦ k , 9, of Schedule 12 of Balance Sheet are dependent « fkØ e }°j¦ j¦Û zØi | j¦ upon the outcome of court judgment / arbitration |¥ {yØ | Î rØ awards / out of court settlement/disposal of d}Û« j¦ |}t| j¦ }« y ÎÛ q j¦ j¦ appeals, the amount being called up, terms of {Ød« ·}«¸j¦ili l {Ø contractual obligations, development and raising }|ã¥Îi««j¦e¥}°Ø}Ø¥d}Ø|ÎÛ Î of demand by concerned parties respectively. No reimbursement is expected in such cases. Û Ü¦Û«ãØj¦||Û¥oo||d}| c) In February 2019, the Honorable Supreme Court |¥«}tj¦Îj¦j¦¥oÛã|{d{ of India in its judgment clarified that certain special }°{| d{| }ÛiÜ¦ d{| j¦ d Øl¥Ø allowances should be considered to measure {Ød«j¦j¦|j¦ij¦Ø}ãÏ«j¦ obligations under Employees’ Provident Funds and l|qi àj¦j¦j¦||Û}¥j¦|}ÎzÛle¥ Miscellaneous Provisions Act, 1952 (The PF Act). The Bank has been legally advised that the said Îj¦¥oo|¸f§Ø|¥ àj¦}l|ÎÛ ruling by Supreme Court is not applicable to the ÎØÎ§«j¦ àj¦d}|Û j¦Û|{ |iÎiÎ Bank since the bank is maintaining its own fund. vÛ f}ã§Ø|«« Ûd ÛÜ¦e|«¢ tv d) Claims filed against BOB Financial Solutions Limited j¦kÜ¦zzj¦ilij¦|hj¦}«Ûj¦ in consumer courts but not acknowledged as debt s |ÎÛ j¦ilij¦vÖ o¥«j¦vÖ Rs. 0.88 Crore (March 31, 2018: Rs.1.02 Crore). e) Income Tax demand against BOB Financial e¥ Ûd ÛÜ¦e|«¢ tvj¦kÜ¦dj¦ Solutions Limited is Rs. 6.03 Crore (March 31, j¦Û lj¦vÖ o¥«j¦vÖ 2018: Rs. 6.02 Crore) iÜ¦ ¥itÛÛde¥tàvv¥ot¥v¥j¦}tj¥¦t¤tv f) M/s STCI — Standard Chartered Capital Markets §ØoÕt àj¦ |¥« Ûd Ûj¦}tj¥¦t¤ Limited (joint merchant banker) filed a case against tv j¦ yy qÛj¦Ø¥ j ¦}|Û iÛ}ÛÛi BOB Capital Markets Limited in the year 2010 as well as the issuer company (SVPCL Limited) for tv j¦·j¦vÖj¦ÛÎ|j¦ÛØ}Ø¥j¦ indemnifying the damage of Rs.15.23 Crore claimed iij¦zj¦yiÛ}ÛÛitvj¦ by SVPCL Limited. The above disputed matter is f}§ØzØ||Ûfoo| e¥j¦ pending before the Hon'ble High Court, Mumbai. In ØÎ}° {|j¦Û«Î|{j¦z qÛÎ the opinion of the management this is a frivolous dj ¦}|Û}j¦e¥z|zÛ|ÎÛ ÎlÛdf|j¦d||« litigation and there would not be any liability on the company and the case, in all probability, would be |j¦|¥j ¦}|Ûj¦}«Îl decided in the company's favour. qÛ dj¦j¦dØ«j¦ÏÛ««|Ø|ÎÛ zÛ g) Contingent Assets are not recognized in the le¥Î financial statements. }j§¬¹ llq¦} 10. Penalty Imposed by Regulators Particulars o¥j¦}Ø¥j¦i o¥j¦}Ø¥j¦i For the year ended March 31, For the year ended March 31, 2019 2018 No of Cases Amount No of Cases Amount (in Cr) (in Cr) ãØÛ^¥ àj¦¸lq¥| Penalties Imposed by RBI 125 5.25* 93 7.12 zÛ}°z«d| l«}f|j¦ Penalties Imposed on 3 0.49 4 5.88 {Ø|j¦¸liq¥| Overseas territories/ subsidiaries by their respective regulators e«ªt {Ø}o|Øj¦ j¦j¦ãØÛ^¥ àj¦¸l * includes Rs. 4 crore penalty imposed by RBI on account of delay in lj¦vÖj¦q¥|Î implementation of SWIFT related operational controls.

237 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

dÙ ¨Ù~±j§tÜj§ ¢ 11. Additional Disclosures: j ¦}|Ûd| l«j¦dldlÏÛ««dØ§Ø Additional information disclosed in the separate financial statements of the Parent and the Subsidiaries o| « }°j¦tÛj¦ q|j¦ ÛiÜ¦i j¦ tÛj¦ d |} having no bearing on the true and fair view of the CFS tj¦}j¦e¥}°ã|ÎÛ }vÖØdf|z«j¦Ûo|q and also the information pertaining to the items which j¦e¥||ÎÛ kØÛf|Î«ÛiÜ¦ij¦}°j¦tÛj¦«|ÎÛ are not material, have not been disclosed in the CFS. j¦lÎ 11.1 Inter- Bank/Company balances between group Îj¦Û yd«j¦ Ûod}«d Ø àj¦j ¦}|Ûj¦Û entities are being reconciled on an ongoing basis. «j¦q|dØ|Û¦}j¦qØÎ No material effect is expected on the profit and loss e}°j¦j¦q|j¦o¥j¦ãÎ|kØ account of the current year of such reconciliation. }j¦e¥}°ã}vÖ|j¦Ûd}|ÎÛ Î 11.2 The 11th Bipartite Settlement entered into by the Indian Banks’ Association on behalf of the member j¦l« j¦ dk ãØÛ ||« j¦ y z Banks with the All India Unions of Workmen àj¦«j¦ÛdãØÛ àj¦ m¸j¦l£ expired on 31st October 2017. In accordance with ¸}zÛ}rØd§t j¦}ØÎl the pending execution of agreement for wage Ø| {|j¦ ØrØqj¦| revision, to be effective from 1st November 2017, lÎlfj¦i¥j¦z|j¦vÖ a provision of Rs.531.95 crores (previous year }â¥j¦vÖ j¦}°{|j¦lÎ Rs. 100.63 crore) has been made during the year. The Bipartite Settlement is applicable on Bank of Î¸}Ûj¦Î« àj¦d¢Ü¦ vÖzd||ÛØ Baroda and Nainital Bank in the group. àj¦j¦ilÎl 11.3 The Government of India through a gazette ãØj¦|q}d{o|)1R notification F.No.1/1/2017-BOA dated January %2$ z| j¦Ø q|Û j¦ { àj¦ 2, 2019 approved the scheme of amalgamation d¢Ü¦ vÖzz| àj¦dq àj¦j¦| between Bank of Baroda, Dena Bank and Vijaya j¦Ûq|j¦d|z|j¦Îd{o|ãØÛ Bank. This notification was issued in consultation q¥ àj¦j¦}¥qÛj¦Ûle¥yÛz| j¦ with Reserve Bank of India. On January 2, 2019 the Board of Directors of the Bank and the Board q|Ûj¦ àj¦j¦|zj¦ vdq of Directors of Vijaya Bank and Dena Bank at their àj¦ d z| àj¦ j¦ |zj¦ v | d}|Ûd}|Û respective meetings, approved amalgamation of uj¦««q àj¦dz| àj¦j¦y| Vijaya Bank and Dena Bank with the Bank. The j¦d|z|j¦ {Ø àj¦«j¦|zj¦ v«| Boards of respective banks have also approved }d|}Øj¦id|z|z {Ø àj¦j¦ the swap ratio of 402 equity shares of Face Value |zj¦ v«|q àj¦j¦}°Øj¦ Rs 2 each of Bank of Baroda for every 1,000 equity shares of Face Value Rs 10/- each of Vijaya Bank e§tÛj¦i àj¦d¢Ü×¦ vÖzj¦}°Ø and the swap ratio of 110 equity shares of Face j¦e§tÛdz| àj¦j¦j¦ Value Rs 2 each of Bank of Baroda for every 1,000 e§tÛj¦i àj¦d¢Ü×¦ vÖzj¦}°Ø shares of Face Value Rs 10 each of Dena Bank. j¦e§tÛj¦}d|}Øj¦d|zØ The amalgamation has come into effect from April j¦ÎÎ||§ØØÛkd}° 1, 2019, the appointed date, accordingly, this }°ãÛÎlÎdej¦yo¥j¦ amalgamation does not have any impact on the financial results of the Bank as at March 31, 2019. ÏÛ}«}j¦e¥}°ã|ÎÛ }vÖl 11.4 In accordance with current RBI guidelines, the Ø¥| ãØÛ ^¥ àj¦ j¦ z|z¥« j¦ d| general clarification issued by ICAI has been j¦ØÏÛ«j¦ÛØÛ«de¥Ûide¥¸ considered in the preparation of the consolidated qÛ|}tÛj¦}oj¦lÎej¦ financial statements. Accordingly, additional d| j ¦}|Û d fj¦Û d| l« j¦ dl statutory information disclosed in separate financial dlÏÛ««dØ§Ø {j¦o|d«j¦ statements of the parent and its subsidiaries }°j¦tÛj¦j¦ØÏÛ«j¦ÛtÛj¦Ød having no bearing on the true and fair view of the consolidated financial statements and also |}Ø}j¦e¥}°ã|ÎÛ }vÖØyÎÛde¥Ûide¥ the information pertaining to the items which ¸qÛk j¦||j¦«j¦Ûkj¦dj¦«q| are not material have not been disclosed in the z«j¦Ûo|j¦e¥||ÎÛ kØÛf|j¦}°j¦tÛj¦ consolidated financial statements in view of the j¦ØÏÛ««|ÎÛ j¦lÎ Accounting Standard Interpretation issued by ICAI. }â¥j¦d j¦vÖ«j¦o¥j¦lÛ¥j¦j¦d|} 11.5 Previous year’s figures have been regrouped ||j¦idj¦Ø|Ü¦Î««lÛ¥j¦Ø where necessary to conform to current year j¦lÎ classification.

238 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

o¦j§~Ù¦j§ij§Ù}j§{Ü~±Ï ~ 6WDWHPHQWRI&RQVROLGDWHG&DVK)ORZIRUWKH\HDUHQGHGst0DUFK

(` in 000's) o¦ o¥ j§~Ù¦ j¦}Ø¥ Year ended Year ended st 31 0DUFK 31st March 2018 i }o|j¦¥j¦} |j¦zÛ}°Î¡ $ &DVKÁRZIURPRSHUDWLQJ DFWLYLWLHV j§ ~¦}ä 1HW3URÀWEHIRUHWD[HV ||kØj¦iq|¡ Adjustments for: dodØ«}¾ 'HSUHFLDWLRQRQÀ[HGDVVHWV 948,25,01 900,69,00 |«}¾ }}§h}«ÎØ Depreciation on investments 165,13,96 768,41,93 (including on Matured debentures) t¤tkØ«vlid{h Bad debts written-off/Provision in 12322,98,35 14335,38,64 d|q¥j¦dØ«j¦i}°{| respect of non-performing assets |j¦dØ«j¦i}°{| Provision for Standard Assets (64,07) (360,59,36) d|z«j¦i}°{| Provision for Other items 1568,52,40 924,02,91 dodÙ¬j§Ü©§Ü ä Ï} 3URÀW ORVVRQVDOHRIÀ[HGDVVHWV (15,43,31) (89,66,69) l h¬~ qÏÙälÙ}~±|} Payment/provision for interest 1187,38,39 1187,38,39 dll on subordinated debt(treated separately) ~¦l 6XEWRWDO ||kØj¦iq|¡ Adjustments for: |«« · j¦Û (Increase)/Decrease in (20744,15,19) (35189,21,42) investments dl°«« · j¦Û (Increase)/Decrease in advances (58596,53,45) (60014,34,96) d|dØ«« · j¦Û (increase)/Decrease in other 1145,29,20 (6340,95,49) assets f{««· j¦Û Increase/(Decrease)in borrowings 3453,41,46 34059,56,55 q««· j¦Û Increase/(Decrease) in deposits 58137,32,06 (9805,50,17) d|zØd«Øy}°{|««· j¦Û Increase/(Decrease) in other 1741,61,22 1053,55,15 liabilities and provisions }°zÏ}°Øj¦ Ü ¦vj¦| Direct taxes paid (Net of Refund) (4299,84,12) 960,27,78 ~ o}j§¦j§~¬}}j§{Ü i 1HWFDVKIURPRSHUDWLQJ DFWLYLWLHV $ Û | {Ûj¦¥j¦}«|j¦zÛ}°Î¡ B. &DVKÁRZIURPLQYHVWLQJDFWLYLWLHV dodØ«j¦ÛkÛz 3XUFKDVHRIÀ[HGDVVHWV (2666,03,43) (613,05,64) dodØ«j¦Û ¨¦Û 6DOHRIÀ[HGDVVHWV 128,66,08 199,42,71 }¡¡|Üj§¦j§~¬}}j§{Ü Ü 1HWFDVKIURPLQYHVWLQJ DFWLYLWLHV %

239 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

(` in 000's) o¦ o¥ j§~Ù¦ j¦}Ø¥ Year ended Year ended st 31 0DUFK 31st March 2018 Û ÏÛ¨¦j¦}«|j¦zÛ}°Î C. &DVKÁRZIURPÀQDQFLQJDFWLYLWLHV } qÛ Share Capital - 68,27,13 d t|ÎØ Ødz| Share application money pending 5042,00,00 - allotment }°Û Share premium 39,61,66 5306,72,87 lq|ØÛl v Unsecured Subordinated Bonds 554,30,01 (441,75,02) ã Dividend - (332,78,78) lq|ØÛ}°Øz v«}}°zÏz q Interest paid / payable on (1187,38,39) (1187,38,39) unsecured redeemable bonds Ð~lÙ|¬}}j§{Ü Ü 1HWFDVKIURPÀQDQFLQJ 4448,53,28 3413,07,81 DFWLYLWLHV & }j§{Üi¡}j§{ÜÙ i Ü Ü ¬ 1HWLQFUHDVHLQFDVK FDVK 462,09,35 (56692,25,34) }¸ HTXLYDOHQWV $ % & ¥j¦d ã«|j¦zÛi |j¦zÛØ Cash and cash equivalents as at 97422,74,62 154114,99,96 the beginning of the year ¥j¦d Ø«|j¦zÛi |j¦zÛØ Cash and cash equivalents as at 97884,83,97 97422,74,62 the end of the year t~~Ü 1RWHV 1 }j§{ÜÙz}j§{ÜÙ¬Ïz¬}j§{Ü 1 Cash & Cash equivalents includes Cash on hand, Balance with RBI & ä áÙzd}áj§¬j§~d ¡l Other banks and Money at call and Short Notice. Ùzd~|}t~ ¯Ï 2 }j§{ÜÙz}j§{ÜÙj§mtj§ 2 Components of Cash & Cash o¦j§ o¥j¦ Equivalents As on As on 31st0DUFK 31st March 2018 ã àj¦}|j¦zÛi Cash & Balance with RBI 28225,34,60 24034,98,85 àj¦«j¦yØy li d}{|t Balances with Banks and Money 69659,49,37 73387,75,77 }® at Call and Short Notice ˆºÅ¥¸ Total 97422,74,62

240 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

áj§d£ÝØ§v× {j§j§ÙÐÜ ¡~ k~ Üj§¡j§Ü ~t¦ $8',7256 5(325721&2162/,'$7('),1$1&,$/67$7(0(1762)%$1.2)%$52'$

~±Ù To The Members of Bank of Baroda áj§d£ÝØ§v× {j§{l Report on the Consolidated Financial Statements of Bank áj§d£ÝØ§v× {j§j§ÙÐÜ ¬~ ~t¦ of Baroda Opinion 1. We have audited the accompanying Consolidated Î| àj¦d¢Ü×¦ vÖz ej¦ zqÎv lej¦e¥j¦| Financial Statements of Bank of Baroda (hereinafter zã¥Øj¦qil ej¦Ûd| l d §Ø}| Ø referred to as “the Holding entity ”), its subsidiaries and ej¦e qj¦Ø}CCÎ j¦| zã¥Øj¦qil Jointly Controlled Entities (together referred to as “the Øyej¦Îl«j¦o¥j¦j¦ØØ|}d Group”) and its associates comprising of the consolidated Balance Sheet as at March 31, 2019, the consolidated fj¦y l|f§ØØÛkj¦}Ø¥j¦j¦ØãÎ| Profit and Loss Account and the consolidated Cash Flow kØi f§ØØÛkj¦j¦Ø|j¦zÛ}°Îj¦Ûk Statement for the year then ended, and a summary of }Û j¦Û Î Øy ÎØ}¥ k |ÛØ« d |{Ø dãk« the significant accounting policies and other explanatory }d{Ød|kØj¦o|d« ej¦ zqCCj¦Ø information prepared based on the relevant record. ÏÛ j¦| zã¥Øj¦qil j¦ Ø (hereinafter referred to as “the consolidated financial j¦Î statements”). 2. In our opinion and to the best of our information and ÎÛ i ÎÛ q|j¦Û Øy Î« zi li }tÛj¦ j¦ according to the explanations given to us, and based d|ØydldlÏÛj¦ØÏÛ on the consideration of the reports of the other auditor dÎj¦j ¦}|«i d| l« §Ø}| Øej¦e« on separate financial statements/ consolidated financial ØyÎl«j¦Ûd|ÏÛo|d«j¦Û}t¥}d|k statement and on other financial information of the subsidiaries, Jointly Controlled Entities and associates, }Ûj¦«j¦Û}t¥j¦d|}f}¥§Øj¦ØÏÛ àj¦« the aforesaid consolidated financial statements give the j¦ilãØÛ|zÛkj¦ y| de¥Ûide¥ ¸ information required by accounting standards issued by qÛk|j¦«j¦Ûdj¦Ød« àj ¦l|d{| the Institute of Chartered Accountants of India (ICAI) as j¦Û{j¦}°{|«}}«ydj¦ãØÛ^¥ àj¦ applicable to banks, provision of section 29 of the banking d Ûde¥ ¸}qÛz|z¥«j¦d|}o|i regulation act 1949, circulars, guidelines and directions }°z|j¦ØÎàØyãØ«|Ø¡Ûj¦Øk j¦|· Ø«j¦ issued by Reserve Bank of India (RBI) from time to time in the manner so required and give a true and fair view d|}o¥j¦}Ø¥ÎØÎj¦j¦Øãi in conformity with the accounting principles generally j¦Ø|j¦zÛ}°Îj¦Ûj¦ØyØj¦ÛØj¦i ÎÛØÛ accepted in India, of the consolidated state of affairs of the }°ØØj¦ØÎà Group as at March 31, 2019 of its consolidated profit and ÏÙd| consolidated cash flows for the year then ended. Basis for Opinion Î| d}|Û k}Û de¥Ûide¥ ¸ qÛ k}Û } 3. We conducted our audit in accordance with the Standards qÛ|j¦« ii j¦d|}j¦ÛÎf|k}Û|j¦« ii on Auditing (SAs) issued by the ICAI. Our responsibilities j¦d Øl¥ØÎdfÏzØÎÛ}t¥j¦Ûj¦ØÏÛ under those SAs are further described in Auditor’s «j¦Ûk}ÛÎØk}Ûj¦«j¦fÏzØd|ãl« Responsibilities for the Audit of Consolidated financial statements Section of our report. We are independent of ¥ØÎÎãØÛ|zÛkj¦ y| de¥Ûide¥ ¸ the Group in accordance with the Code of Ethics issued qÛ|Øj¦do ÎØj¦d|ÎØ ÎàØyj¦Ø by the Institute of Chartered Accountants of India together ÏÛ }« j¦Û ÎÛ k}Û {Û }° lj¦ do with the ethical requirements that are relevant to our audit ÎØd«j¦yÎàÎ|e|dj¦Ød«i do ÎØj¦ of the consolidated financial statements, we have fulfilled d|}d||Øj¦zØ«j¦}j¦ÎÎÇÎj¦q our other ethical responsibilities in accordance with these k}ÛÎ|}°ØØj¦ÎÎÎdãØj¦d{ requirements and the Code of Ethics. We believe that, the audit evidence we have obtained is sufficient and }°z|j¦|ÎØ}¥}Ødf}§ØÎ appropriate to provide a basis for our opinion. k~ Üj§ÜÏÙ~¦Ù¬ Key Audit Matters Î}|¥j¦d|}k}Ûj¦ÛÎØ}¥ |zi Îàq 4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the j¦Ø¥|d{j¦Ûj¦ØÏÛj¦ÛÎÛk}Û consolidated financial statements of the current period. «dØ{j¦ÎØ}¥yÛ j¦ØÏÛj¦Ûl°} These matters were addressed in the context of our audit k}Ûj¦ zã¥«e| |zd«}{|zlØyÎ|e of the consolidated financial statements as a whole, and }d}|ÛzØj¦e¥dl|ÎÛ zÛÎ in forming our opinion thereon, and we do not provide a separate opinion on these matters.

241 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

o}~± ¶lj§Ü de¦tÜ i¡ k~ Ü¡¡|ÜÏ tj§ Information Our Audit Approach Technology (IT) and We have obtained understanding ÐÜ ~tÖl j§ ~±äÙ Î|o|}°µlj¦Û · àj¦ controls impacting of the IT related environment of j§ }}¡ j¦}j¦rÎi Øz|} financial reporting the Bank, and had accordingly ÏÛ}tÕl}°¨¦j¦ zã¥ de¥tÛ i}Ûj¦| vt i The IT environment is identified IT applications, « àj¦ j¦ }o| « o| qk j¦| ÎØ d¢}t l complex and pervasive databases and operating systems }°µlj¦Ûj¦}qti tj¦Û}Îo|j¦ÛÎqÏÛ to the operations of the to conduct risk assessment which Bank with regards to may impact on the financial }j¦ Î §«j¦ Î dØ{j¦ }tÕlj¦}°ãØj¦j¦ØÎ the financial reporting reporting. } o| }°µlj¦Û } e«d|j¦yyq process since the same Our audit procedures in this area |ã¥ Î q« oØ i ÎÛ k}Û }°¨¦ | is highly dependent on included, among others: |Û| Øydj¦i j¦ÎÎà¡ information technology x Testing IT general controls }o|lØqtØj¦j¦ x f}lj¦Ø¥ d i}j¦| including automated related to User and and manual controls and Application controls, Change }¥ Øy }· e§tÐ|j¦ | }° {|| }Ø¥| availability of complete Management Controls and d j¦vÖ«j¦Ûf} {ØÎ Øy vt j¦d} |{Ø and accurate electronic Data backup. d|{j¦Ø dy }j¦ }Î o de¥tÛ | | j¦ data due to the size x Assessing whether j¦ d{j¦ de¥tÛ } « }Û and complexity of the appropriate restrictions were x operations. placed on access to core }Ø¥|}o|lØ| d{j¦Ø j¦¥« j¦ zÛ j¦Û le¥ Unauthorized or j¦Õj¦}y§j¦«j¦Ûj¦ d|Ø i fÏzØ j¦Û systems through reviewing extensive access the permissions and j¦ÏÛo|d«j¦lØ Û j¦ ¸ Î j¦| rights, changes in responsibilities of authorised Î| j¦ qk Î j¦Ø Î j¦|j¦§j¦tØj¦ IT environment, personnel. ØyÏÛ j¦Û}¥Ø }Î o } oØ }°Ø { li operational controls, lack of segregation of x Where we identified the }·Ø}°ãØÎj¦ØÛÎ li duties which may cause need to perform additional procedures, we placed fooØ}Îio|j¦ x qÎ Î|dØ§Ø}°¨¦d«j¦ a risk of misstatement of |}zØ j¦| j¦Û dj¦Ø financial information and reliance on manual j¦d{j¦ k«ij¦Ûj¦Ø could have a material compensating controls; such rÛ Î Î£ |Û Ø}Ø¥ as reconciliations between lij¦Ûj¦Ø t j¦ }°l | }|ã¥ØkÛle¥Î consequence on the ÎdÎÎk}ÛÎØij¦ completeness and systems and other information ÎØ}¥Î yti d|o|ÉØ accuracy of the financial sources or performing dydØ§Ø}Û|}z| statements. additional testing; extended j¦ Ûo{|Î|}¥}Øi Due to high level of our sample sizes, to obtain automation, number adequate and appropriate f}§Ø k}Û j¦ audit evidences. }°}Øj¦|ÎØd}|«}dj¦ of integrated / non – integrated systems j¦ØzÎ used, this is a significant hdl±¬j§lÜ¦j§ f} k~ Ü¡¡|ÜÏ tj§ matter for our audit. ~ ~±|}j§ d d Î| t « |i li | Accuracy in Our Audit Approach j§Ü~Ïo}j§ÜtÜj§Ù classification of We had obtained understanding ãØÛ^¥ àj¦j¦z|z¥«j¦ Loans and Advances, from the Bank about the controls àj¦j¦|dl°j¦dØ« d|}|j¦ {« |iliq o provision thereon and built in the system, checks and j¦ Î q j¦ ÏÛ i Øy l |}zj¦ dØ« recognition of income balances incorporated with j¦ij¦ÎØ}¥ãlÎ j¦Û }Îo| ÎØ àj¦ j¦Û |{Ø respect to adherence to the RBI |ÛØ« }°{|« j¦ r Î The net advances of guidelines and related Bank’s ãØÛ^¥ àj¦¸qÛd Øz|}d}|Ûk}Û}°¨¦j¦Û the Bank constitutes Policies for identification of non j¦Û}Îo|dØlÛ¥j¦d of 59.07% of the total – performing assets, provisioning q| |e¥Î assets, which is the dl°« {Ø }°{|j¦ Î| Û¥ m kd« j¦Û and had accordingly planned our } j¦ Ø |z v« j¦ significant part of the audit procedures. k}Ûj¦ÛÎi d|mØy financial statements. }| j¦| j¦ yy àj¦¸o|ØzÛkd«j¦ We have audited top 20 domestic l |}zj¦ dØ« ÎØ zã¥«kk}Ûj¦¸j¦i Besides following the branches and have relied on the }°{|j¦ j¦ i àj¦ j¦Û lij¦Õ}ãj¦Î prudential norms on work done by the branch auditor d}|Û ãÛ j¦Ø} |ÛØ£ Îà Income Recognition, for other domestic and foreign ÎÛk}Û}°¨¦|Û¥ branches selected by the Bank. ãØÛ ^¥ àj¦ ¸ qÛ m kd« j¦Û k}Û j¦ Asset Classification and ã|| l¥|z¥« j¦ d| Provisioning relating to Our audit procedures with respect «Î|j¦âj¦«e|z« zã¥«|| zd«}{|j¦|®Ø Advances issued by the to our audit of top 20 domestic j¦k}Ûj¦iÎÏ}¥ j¦Î Reserve Bank of India branches, focused on – ´|Îqj¦f{j¦Ø¥d« x h |}z| |l|Û j¦Û (“RBI”), the Bank also x Review of design and }°¨¦j¦ zã¥«k| « has certain policies for operating effectiveness of key ¸}°ØØdj¦vÖ«}|ã¥Ø j¦Û }k i }o| provisioning on non – controls around the process of dÎd{j¦j¦}j¦|j¦ }°ãÛØ j¦Û Û q« performing assets. loan performance monitoring i àj¦j¦Ûo|}°ØãØj¦ dÎ §Ø d which includes basis of j¦|j¦iØØÛ}¸ j¦|j¦dj¦|j¦d{ assessing drawing power and j¦|Øl°Ødl°« ãÛÎ security valuations.

242 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

j¦ i }° {| j¦ d j¦| x Î| l |}zj¦ dl°« ÎØ Due to reliance placed x For non-performing advances on data submitted by on sample basis, we have }|ÕoØdl°«j¦i ||d{}ÏÛ« the borrowers & lead performed loan file reviews to « j¦Û j¦ }j¦| d l j¦|Ûj¦|j¦ih bank for Drawing Power inspect financial particulars, |}zj¦ dØ« Ø q Ü×¦e j¦Û Û }°ØãØ« calculations, third party existence of security and dj¦Û}Îo| j¦Û f} {Ø j¦Û q o j¦Û Î for security valuation, assessed the adequacy of the i ÎÛ kØ« « }°{|« j¦Û computation of provisions recognized in the provisions as per various books of accounts including }¥}ØØ j¦ j¦| j¦ guidelines issued by valuation of collateral and the Îq« }Ç¥j¦d|j¦zÛ the RBI, management cash flows. }°Î j¦|ãÛÎ judgements for impairing x Verification of interest income x e|}t vt j¦ y j¦ advances, computation credited on a monthly basis of diminution value for with the input data, such as d{}q qdy restructured advances {| zØj¦ q principal amounts, contractual and recognition of interest rates, currencies z«®i£i }}§ØØy« interest income including and maturity dates were j¦Ø}|ÉØzØq«j¦ in non – performing tested through substantive }Ûi d|kj¦{ advances; we have testing and tracing to source considered this to be a documents. j¦Î key audit matter. f}¥§Ø j¦ dØ§Ø Î| ØÛ¥ Besides above, we have also k}Ûj¦«j¦Û}t¥i àj¦¸ referred to the reports of the concurrent auditor and other j¦Ûle¥d|k}Ûj¦ãÛ zã¥ audits conducted by the Bank. Î In addition to the branches Î ¸ j¦Û le¥ kd« j¦Û audited by us, we have carried k}Û j¦ y y Î| out the Assessment of design, dl°« j¦ lÛ¥j¦ l |}zj¦ implementation and operating dl°« ·dj¦Û}Îo|i effectiveness of controls of IT System used with respect to }°{|Ûj¦j¦i}°§Øde¥tÛ the classification of advances, t j¦Û }k ¨¦|| i recognition of income and }o| }°ãÛØ j¦ j¦| provisioning pertaining to non – j¦Î performing advances. d} Other Matters j¦ØÏÛÛ«Îà¡ 5. Incorporated in the Consolidated Financial Statements are : i zÛd| l«j¦ÏÛq|j¦ÛÎ|k}Û a. Financial statements of 6 overseas subsidiaries |ÎÛ j¦ÛÎe|j¦ÏÛ««o¥j¦j¦ which have not been audited by us, whose financial dØ Îqj¦fkÎØy¥j¦d Ø« statements reflect total assets of Rs. 141,376,533 Îqj¦j¦qdÎq thousands as at March 31, 2019 and total revenue of Rs. 139,46,862 thousands and net cash flows j¦|j¦zÛ}°ÎÎo¥j¦¥j¦Û}Øj¦i amounting to Rs. 10,982,377 thousands for the year Îqj¦|ãj¦Îj¦ãÛj¦Ø then ended. The Consolidated Financial Statement ÏÛ « j¦i li Îà q ij¦ zÛ also includes the group’s share of net profit of Rs. ÎlÛj¦ {«j¦ØÏÛj¦}«|l 24,142 thousands for the year ended March 31, 2019 as considered in the Consolidated Financial Statements Îq|j¦ÏÛ«j¦k}Ûd|k}Ûj¦« in respect of 1 overseas associate, whose financial ¸j¦Ûle¥ÎzÛd| l i §Ø| Øej¦e¥ statements have been audited by another auditor. The q|j¦ÛÏÛ z j¦Øj¦Ûle¥ financial statements of 5 overseas subsidiaries and Îàdq|Î«j¦ØÏÛ««j¦lÎ 1 jointly Controlled entity have been drawn up upto December 31, 2018 and included in the Consolidated }° {||Î}°Øj¦Îj¦q|Ûo¥ Financials Statement, the Management has certified j¦Ûd{j¦z|j¦e¥fk|Û}Ø¥||ÎÛ Îd that no significant changes have taken place during Îe|ÏÛ«j¦Ûk}Ûd|k}Ûj¦«¸ the period from January 01, 2019 to March 31, 2019. j¦Ûle¥ÎdÎof§Ød| l«j¦ «qÎ These financial statements have been audited by other auditors and our opinion, in so far it relates to the Øj¦t«j¦ {ÎØ¡f|k}Ûj¦« amounts included in respect of those subsidiaries is j¦Û}t¥}d{ØÎ based solely on the reports of those auditors. Û mÎj¦j ¦}|«j¦ÏÛdm §Ø b. financial statements of 6 domestic subsidiaries | Ø yi q|j¦ÏÛ««yo¥ and 1 domestic joint controlled entities, whose

243 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

j¦ }ÏÎqdØ }ØÕØj¦j¦ financial statements reflect total assets of Rs. 48,387,448 thousands at March 31, 2019 and qÎqd||j¦zÛ}°Î total revenue of Rs. 6,377,782 thousands and net Îqz¥ØÎàÏÛj¦Ûzk}Ûj¦«¸ cash flows amounting to Rs. (26,646) thousands for k}ÛØj¦iliÎàqÎ«}° {|¸f} {j¦lÎà the year then ended. These financial statements have been audited by other auditors whose reports have j¦ØÏÛ««e|mÎj¦j ¦}|«d §Ø been furnished to us by the Management and our | Ø yd«dÎlÛ yj¦««e| {Ø opinion on the Consolidated Financial Statements, in so far as it relates to the amounts and disclosures d}°j¦tÛj¦Îàde|}ÎÛ}¥Ø included in respect of these domestic subsidiaries and f|k}Ûj¦«¸zÛle¥}tÕ}ÎÛd{ØÎ joint controlled entities and associates, is based solely Û zÛÎj¦j ¦}|«j¦ÏÛ §Ø} on the reports of the other auditors. c. financial statements of 4 overseas subsidiaries, | Ø zÛ ej¦e¥ m Îj¦ d §Ø } 1 Jointly Controlled overseas entity, 1 domestic | Ømej¦e¥q|j¦ÏÛo¥Øj¦ subsidiary and and 1 Jointly Controlled domestic entity }Îqj¦Ûj¦ }Ïj¦z¥ØÎàdfÛ¥ whose financial statements reflect total assets of Rs. 270,140,790 thousands as at March 31, 2019 and j¦d ØØj¦j¦qÎqd||j¦zÛ total revenue of Rs. 27,684,618 thousands and net }°Î Îqz¥ØÎàj¦ØÏÛ«« cash flows amounting to Rs. (18,984,195) thousands for the year then ended. The Consolidated Financial e|Îl«j¦ {«o¥Øj¦Îj¦|ã Statements also include the Group’s share of net Îqj¦ÛãÛÎqj¦ÏÛ profit of Rs. 765,957 thousands for the year ended k}ÛØ|ÎÛ Îàe|«j¦Ûk}Û|ÎÛ Îe¥Îd March 31, 2019 in respect of 3 associates. These financial statements are unaudited and have been Î«}° {|¸f} {j¦iliÎàe|}ÎÛd furnished to us by the Management and our opinion Øj¦j¦ØÏÛ««e|Îj¦j ¦}|«j¦ {« on the Consolidated Financial Statements in so far d| l« §Ø}| Ø yi ÎlÛ yj¦ as it relates to the amounts and disclosures included in respect of these subsidiaries, Jointly Controlled «««}°j¦tÛj¦Îàde|}ÎÛ Entities and Associates is based solely on such }¥Øe|dk}ÛØ}tÕ}ÎÛd{ØÎÎÛ unaudited financial statements. In our opinion and according to the information and explanation given to «dÎ«}° {|¸zÛle¥o|}tÛj¦j¦d|e| us by the Management, these financial statements are ÏÛ«j¦Î}j¦e¥ØlØ}°ã|ÎÛ }vl not material to the Group. Other Information d}o} 6. The Holding Entity’s management and Board of Cd|o| j¦i{j¦ yj¦}° {|i |zj¦ v Directors is responsible for the other information. The other information comprises the information included fÏzÛÎd|o|«¥j¦}t¥«zÛle¥o| in the Annual report, but does not include the financial Î} ØÏÛdf}Îk}Ûj¦j¦Û}t¥ statements and our auditor’s report thereon. The Annual |ÎÛ Îd}ØÎj¦¥j¦}t¥ek}Ûj¦j¦Û report is expected to be made available to us after the date of this auditor's report. }t¥j¦ÛØÛkj¦ zÎ zÛqi 7. Our opinion on the financial statements does not cover the other information and we will not express any form of ÏÛ }ÎÛ«d|o||ÎÛ ÎdÎ assurance conclusion thereon. j¦ÛãÛ}«dÇ||j¦¥§Ø|ÎÛ j¦«l 8. In connection with our audit of the financial statements, our responsibility is to read the other information ÎÏÛ«j¦Ûk}Ûj¦¥«ÎfÏzØÎj¦ identified above when it becomes available and, in doing f}§Ød|o|j¦}«zÛle¥o|}cÖ«d{|zk«j¦Î so, consider whether the other information is materially o|d|q|j¦ÛÏÛ«k}Ûj¦z|Î inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to |«de¥o|j¦yd lØØ|ÎÛ ÎØlØ}j¦e¥ be materially misstated. lØo|Ø|ÎÛ zÛle¥Îq Îd|o|j¦}cÖdÎ}i When we read the other information, if we conclude that j¦fd lØØÎØej¦Ûq|j¦Ûl|Õj¦}°ãÛ§Ø« there is a material misstatement therein, we are required to communicate the matter to those charged with j¦z|j¦Ûdj¦ØÎd}j¦d|j¦Øyl|«i governance and take appropriate actions necessitated |«j¦d|}e}foØj¦¥e¥d}ØÎlÛ by the circumstances and the applicable laws and regulations. j§Ù ÐÜ ¬ j§ i ~±¡|} d l}Ö j§ ~±ä ¬ j§ Responsibilities of Management and Those Charged fÐ {Ù with Governance for the Consolidated Financial d{| j¦ }°{|« j¦ d| {j¦ y j¦ }° {| d Statements 9. The Holding Entity’s management and Board of Directors |zj¦ ve|j¦ØÏÛ«j¦ÛØÛd}°ØØ are responsible for the preparation and presentation

244 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

j¦ifÏzÛÎàqÎ«j¦ØyØj¦Øãd of these consolidated financial statements in term of the requirement of the Act that give a true and fair view of j¦Ø|j¦zÛ}°Îj¦ÎÛd|}tj¦zØÎàqj¦ the consolidated state of affairs, consolidated profit and ãØÛ|zÛkj¦ y|j¦k|j¦ àj ¦l|| consolidated cash flows of the Group in accordance with the d{|j¦Û{j¦}°{|dãØÛ^¥ àj¦ accounting principles generally accepted in India, including ã à ¸ } qÛ }} d z|z¥« d the Accounting Standards issued by ICAI, provisions of Section 29 of the Banking Regulation Act, 1949 and the ãØ«|ØÛj¦Øk j¦|· Ø«j¦d|}Î«Î circulars and guidelines issued by Reserve Bank of India j¦Ûj ¦}|«j¦|zj¦ v}°Øj¦j ¦}|Ûj¦kdãk«j¦Û (‘RBI’) from time to time. The respective Board of Directors j¦ i d {k{vÖÛ d d| d|ØØd« j¦ }Ø of the companies included in the Group are responsible l|df|Î j¦| }Ï«j¦Ûj¦ifÏzÛÛÎà for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding yÎÛoØk j¦||ÛØ«j¦o|j¦¥||oØ of the assets of each Company and for preventing and dj¦}¥|¥dd||l|}¥}Ød Øj¦ÏÛ detecting frauds and other irregularities; selection and | «j¦Û}kØj¦|j¦¥|Øj¦|d}°ãÛ || application of appropriate accounting policies; making j¦ifÏzÛÛÎàØj¦kdãk«j¦ÛtÛj¦Ød}¥Ø judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate |ÅØj¦Ûqj¦dÎãÛj¦}°ãÛc lj¦j¦Îy internal financial controls, that were operating effectively for j¦ØÏÛ«j¦ÛØÛd}°ØØj¦i}° lj¦ ensuring the accuracy and completeness of the accounting Îdij¦ÎÛd|}tj¦zØÎàt§ØÎà records, relevant to the preparation and presentation of the oÎ{k{vÖÛtj¦j¦qj¦f}l{j¦ yj¦ consolidated financial statements that give a true and fair view and are free from material misstatement, whether due |zj¦«¸j¦ØÏÛØj¦|j¦f´j¦ to fraud or error, which have been used for the purpose of lÎqj¦g}fkj¦lÎ preparation of the consolidated financial statements by the j¦ØÏÛØj¦|« {Ø}° {|dÎ« Directors of the Holding Entity, as aforesaid. 10. In preparing the consolidated financial statements, the yd«j¦|zj¦ vj¦ Û| ØØ |ik| respective management and Board of Directors of the entities ÎØÎj¦ÛØj¦dj¦|j¦|df {Øyj¦ included in the Group are responsible for assessing the ability }°j¦tÛj¦j¦|j¦ Û| ØØ {Ûk j¦||j¦l of the Group to continue as a going concern, disclosing, as j¦|fÏzÛÎàq Øj¦j¦}° {|f zj¦| o| applicable, matters related to going concern and using the going concern basis of accounting unless management j¦|j¦f´|kØÛÎij¦|j¦df|j¦}j¦e¥ either intends to liquidate the Group or to cease operations, d|j¦}Î or has no realistic alternative but to do so. Î«j ¦}|«j¦ {Ø|zj¦ v}°Øj¦j ¦}|Ûj¦Û The respective Board of Directors of the companies included in the Group are responsible for overseeing the ÏÛ}tÕl}°¨¦j¦Ûzkkj¦ifÏzÛÎ«l financial reporting process of each Company. j§Ù ÐÜ ¬ j§Ü k ~ Ü j§ ~±Ù k~ Üj§ j§ Auditor’s Responsibilities for the Audit of the fÐ {Ù Consolidated Financial Statements 11. Our objectives are to obtain reasonable assurance about Îf´foØ}dÇØÎ|Îj¦j¦ØÏÛ whether the consolidated financial statements as a whole l°}tÎØÎàj¦|ÎÛ oÎ{k{vÖÛj¦f´ are free from material misstatement, whether due to fraud lØÛj¦j¦df}ij¦k}Ûj¦Û}t¥qÛj¦| or error, and to issue an auditor’s report that includes j¦iq«ÎÛãÛÎfoØdÇ|fooØ our opinion. Reasonable assurance is a high level of j¦dÇ|ÎØÎ} ØÎl tÛ|ÎÛ Îj¦k}Ûk j¦| assurance, but is not a guarantee that an audit conducted |j¦j¦d|ÎÛj¦lÎdzj¦e¥tÎãÛØ in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fj¦}ØlÎÛqillØ{k{vÖÛtj¦ fraud or error and are considered material if, individually j¦Îj¦ØÛÎàdf|ÎØlØØãÛ|qilq e|j¦ or in the aggregate, they could reasonably be expected j¦§Ø¡l°}f}lj¦Ø¥d«¸j¦Ø}dy¥j¦ to influence the economic decisions of users taken on the |¥«j¦}°ãØj¦|j¦ÛfoØ ã|ÎlÛ basis of these consolidated financial statements. k j¦| |j¦« j¦ d|} Î k}Û j¦ d l j¦ } « 12. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional j¦d||j¦ zÎj¦ÛtkØÎàyÎÛ skepticism throughout the audit. We also: i j¦ØÏÛ««lØo|z|j¦qk«j¦}Îo|« a) Identify and assess the risks of material misstatement df|j¦ j¦|j¦«oÎ{k{vÖÛtj¦j¦ of the consolidated financial statements, whether due Î«f|qk«j¦zj¦|j¦ik}Û}°¨¦d«j¦Û to fraud or error, design and perform audit procedures }kØj¦j¦lj¦«dk}Û}°}Øj¦«q responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis ÎÛj¦id{}°z|j¦|j¦i}¥}ØdfoØ for our opinion. The risk of not detecting a material Î{k{vÖÛfØ}||lØj¦}Ø|ÎÛ l|j¦ misstatement resulting from fraud is higher than for qktlØz|d{j¦Î§«j¦{k{vÖÛ one resulting from error, as fraud may involve collusion, «ÛãlØqqÛq| rj¦oj¦ru |d Øj¦ forgery, intentional omissions, misrepresentations, or | j¦f m|Îj¦ØÎà the override of internal control. 245 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Û k}Û}°¨¦d«j¦Û}kØj¦|j¦ik}Û b) Obtain an understanding of internal control relevant {Ûd Øj¦| j¦ |«qf}yØ« to the audit in order to design audit procedures that f}§ØÎ«} Øe Ø}§Øj¦|j¦f´|ÎÛ are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the j¦j ¦}|Ûj¦}ÏÛ}tÕl}}¥}Ød Øj¦ÏÛ Company has in place an adequate internal financial | }°ÛÎ|ÎÛ Îj¦Ø|Û}°ãÛÎ controls system over financial reporting and the Û }°§Øk j¦||ÛØ«j¦Ûf}§ØØd}° {|¸j¦i operating effectiveness of such controls. lik j¦|d||«d {Ø}°j¦t|j¦ÛØj¥¦ÛØj¦ c) Evaluate the appropriateness of accounting policies j¦|j¦| used and the reasonableness of accounting estimates and related disclosures made by management. vÛ j¦Ø ÏÛ Ø j¦| « j¦ Û | ØØ d) Conclude on the appropriateness of management’s use j¦}| j¦Û Ø^¥ } }° {| | f}§Ø k j¦| · Ø« of the going concern basis of accounting in preparing j¦}°lj¦Îj¦|ÎÛ dk}Ûj¦z|}°}Ø consolidated financial statements and, based on «j¦d{}Î|j¦¥|j¦|j¦j¦e¥ØlØ the audit evidence obtained, whether a material d|ÅØØ j¦Û mt|d« }yØ« {Ø Î q uncertainty exists related to events or conditions that e Øj¦Ûd j¦}ÎØ}¥ zÎj¦j¦ØÎàq may cast significant doubt on the appropriateness e{j¦Ûf}§ØØ} zÎfØ}||ÎzÎi of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention |j¦¥}}Î oØÎàj¦ØlØd|ÅØØÎØÎ«d}|Û in our auditor’s report to the related disclosures in k}Ûj¦j¦Û}t¥«j¦ØÏÛ«« {Ø the consolidated financial statements or, if such }°j¦tÛj¦}{|dj¦¥Øj¦|Îlze}°j¦ disclosures are inadequate, to modify our opinion. Our j¦}°j¦tÛj¦d}¥}ØÎ«ØÎÛj¦ {Øj¦| conclusions are based on the audit evidence obtained ÎlÎ|j¦¥ÎÛk}Ûj¦j¦Û}t¥j¦ÛØÛk up to the date of our auditor’s report. However, future Øj¦}°}Øk}Û}d{ØÎØy}Î àj¦ events or conditions may cause Group (Bank, its ej¦ÛÎj¦d §Ø| Ø yi ã«j¦Û subsidiaries and Jointly Controlled Entities) to cease mt|}yØ«j¦j¦j¦ Û| ØØj¦ÛØ^¥} to continue as a going concern. e) Evaluate the overall presentation, structure and content j¦¥j¦| zãÛj¦j¦ØÎ of the consolidated financial statements, including the e¥ j¦ØÏÛ«j¦l°}}°ØØÛj¦ o| disclosures, and whether the consolidated financial }°j¦tÛj¦ÎØØj¦ j¦|j¦|dÎ statements represent the underlying transactions and zk| j¦ j¦Ø ÏÛ |} } d Ø|¥ÎØ events in a manner that achieves fair presentation. |z|dmt|d«j¦fqlj¦ØÎà|ÎÛ f) Obtain sufficient appropriate audit evidence regarding the financial information of such entities or business iÜ¦ j¦ØÏÛ«}ij¦§Øj¦|j¦iÎ activities within the Group to express an opinion on j¦ãÛØiÛ yd«j¦lØ{«j¦ÛÏÛ the consolidated financial statements, of which we o|}}¥}Øf}§Øk}Û}°}Øj¦«q|j¦ are the independent auditors. We are responsible iÎØ k}Ûj¦ÎàÎiÛ yd«j¦ÛÏÛ for the direction, supervision and performance of the audit of financial information of such entities. For the q|j¦Ûj¦k}Ûj¦Ûz}¥d|}z|j¦ other entity included in the consolidated financial i fÏzÛ Îà j¦Ø ÏÛ « « d| statements, which have been audited by another ej¦e¥j¦iq|Î«j¦Ûd|k}Ûj¦¸q ol auditor, such other auditor remains responsible for the Îf|j¦Ûz}¥d|}z|j¦iÎÛfÏzÛ direction, supervision and performance of the audit Î«lÎj¦d}|Ûk}Ûj¦iÎÛfÏzÛÎà carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are e {«ÎfÏzØ«j¦ek}Û}t¥« further described in para (a) of the Section titled ‘Other } i « d| Û¥j¦«¥Øj¦lÎ Matters’ in this audit report. Î|ØÎàj¦|Ûozili d|« j¦}oâzj¦f} We believe that the audit evidence obtained by us along with the consideration of the audit report of } i «|z¥td|k}Ûj¦Ûk}Û}t¥} the other auditor referred to in sub-paragraph (a) of oj¦yyj¦ØÏÛ§Ø«}Î¸ the ‘Other Matters’ paragraph below, is sufficient and ij¦Øk}ÛÎÛk}Ûj¦d{}°z| appropriate to provide a basis for our audit opinion on j¦|j¦i}¥}ØdfoØÎà the consolidated financial statements. 13. We communicate with those charged with governance Î{j¦ej¦e¥Øf|ej¦e«j¦}°|j¦y }j¥¦j¦Ø of the Holding Entity and such other entities included in Îàq|j¦j¦ØÏÛ«iÎØ k}Ûj¦Îà the consolidated financial statements of which we are the q«d|«j¦yyÎk}Ûj¦q| independent auditors regarding, among other matters, the

246 ¬¸Ÿ¸½¢ˆÅ÷¸ ¢¨¸î¸ú¡¸ ¢¨¸¨¸£μ¸ Consolidated Financial Statement

fz|d Øj¦| «}e¥le¥ÎØ}¥j¦«j¦fql planned scope and timing of the audit and significant audit j¦ØÎà findings, including any significant deficiencies in internal control that we identify during our audit. Îf|}°ã«j¦ãÛ}°ØØj¦ØÎàj¦Î|Ø } 14. We also provide those charged with governance with ãÛ}° lj¦|Øj¦dj¦Ød«j¦d|}|j¦Îd a statement that we have complied with relevant ethical requirements regarding independence, and f|ãÛ { dd|dqÎ lÎ {Ø to communicate with them all relationships and other f}«j¦Ûo|zØÎàqj¦ÎÛØ Ø|}Øj¦Ût matters that may reasonably be thought to bear on our oØ|qj¦ØÎà independence, and where applicable, related safeguards. 15. From the matters communicated with those charged with }°| }°ãÛ j¦ y Î }° Î f| « j¦ }Ø governance, we determine those matters that were of lØÎàqod{j¦j¦ØÏÛ«j¦Ûk}Û most significance in the audit of the consolidated financial « d{j¦ÎØkØÎàdeik}Û}°k´Îà statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s Îd}|Ûk}Û}t¥«e|«j¦Øj¦ØÎàq report unless law or regulation precludes public disclosure Øj¦j¦fj¦¥q|j¦}°j¦tÛj¦j¦|}j¦||Ûj¦|Î about the matter or when, in extremely rare circumstances, d}z}yØ«zÎ«ffqlj¦|}vãÛqi we determine that a matter should not be communicated ØÎÎ}ÎÎ|{¥Øj¦ØÎàj¦fÎÛ}t¥«j¦ÎÛ in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public ¥q|j¦ÎØj¦f´j¦|}j¦ÎÛ ãØ} interest benefits of such communication. Î|j¦j¦Ø|ÎÛ Î«l

v Þ§^ qÜ¡mÜ dÙÏ ¡{Ü~v}v rz rz rz rz i| i| i| i| 'DUDLXV)UDVHU 5DMLY6LQJKL $WXO6KDK 6DQGHHS'LQRGLD Partner Partner Partner Partner M No. 042454 M No. 053518 M No. 039569 M No. 083689

z| j¦e¥ y|¡ e¥ Date: 22nd May 2019 Place: Mumbai

247 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 d~ Ù¦ÙdäÙÏÙk~ Ü ~t¦j§Üm '(&/$5$7,212)$8',75(3257:,7+8102',),('23,1,21

Îej¦¸mj¦ØÎ j¦o¥j¦}ØÏÛ¥j¦i~àj¦j¦j¦Ø¥j¦k }k}Ûj¦ j¦Û}t¥ d}Ø¥Ø dãØÎ We hereby declare that Auditors Report on Consolidated Annual Accounts of the Bank for the Financial Year ended 31st March, FRQWDLQXQPRGLÀHGRSLQLRQ

qÜ ~Üiqj§ }°k }°~ {|zj¦i kj¦¥}j¦d{j¦Û j¦¢}¥tkdj¦{| i Ûi}ád

*5DPHVK 36-D\DNXPDU Head Managing Director (Corp. A/Cs & Taxation) and CFO & CEO

z| j¦e¥ Date: 22nd May 2019

248 ¬¸Ÿ¸½¹ˆÅ÷¸ ¬¸úƒÄ‚¸½ / ¬¸ú‡ûÅ‚¸½ œÏŸ¸¸μ¸úˆÅ£μ¸ &RQVROLGDWHG&(2&)2&HUWL¿FDWLRQ

Üe¦dÜiÝ§d~±Üj§ &(2&)2&HUWLÀFDWLRQ |zj¦ v Board of Directors, Bank of Baroda, àj¦d¢Ü×¦ vÖz Mumbai e¥ }°Îz Dear Sirs, ¢¦ÏÙÜe¦dÜiÝ§d~±Üj§ j§Ù 5H &(2&)2 &HUWLÀFDWLRQ IRU WKH \HDU Consolidated Û oÛ ·ØzØi }°j¦tÛj¦ |j¦Û{ Pursuant to Regulation 17(8) read with Regulation 33 of SEBI j¦y}uØ{j¦Ûd|}|}ÎiØz¤¸}°Øj¦Ø (Listing Obligations & Disclosure Requirement ) Regulations, Îàj¦¡ 2015, we hereby certify that: i Î|¥ j¦Ø ÎØÏÛÛd|j¦z}°Î D :H KDYH UHYLHZHG ÀQDQFLDO VWDWHPHQWV DQG WKH FDVK Û j¦Û Û j¦Û Î Øy ÎÛ d{j¦Ø q|j¦Û i ÁRZVWDWHPHQWIRUWKH\HDU &RQVROLGDWHG DQG Çj¦d|¡ that to the best of our knowledge and belief: i. These statements do not contain any materially L e|««j¦e¥lØdØdãj¦y||ÎÛ Îdy untrue statement or omit any material fact or contain j¦e¥lØØyâ}|ÎÛ lÎdye|«j¦e¥ã°j¦ statements that might be misleading. dãj¦y||ÎÛ j¦lÎ ii. These statements together present a true and fair view LL dãj¦y| àj¦ j¦ j¦¥j¦}« j¦ ÎÛ i }t of the Bank’s affairs and are in compliance with existing tj¦}°ØØj¦ØÎàØyµ|k|j¦«l|« accounting standards, applicable laws and regulations. i |«j¦d|}Îà b. There are, to the best of our knowledge and belief, no transactions entered into by the Bank during the year Û ÎÛq|j¦Ûi Çj¦d|¥j¦z| àj¦¸i which are fraudulent, illegal or violative of the Bank’s j¦e¥ Î|ÎÛ j¦lq{k{vÖÛ«}ØÎ«lj¦||Û code of conduct. Îdy àj¦j¦Ûdo ÎØj¦·Î c. We accept responsibility for establishing and Û ÎÏÛ}tÕl ·d Øj¦| «j¦}¥zØ PDLQWDLQLQJLQWHUQDOFRQWUROVIRUÀQDQFLDOUHSRUWLQJDQG Ûj¦ j¦Ø Îà Î Î ãÛ Ûj¦ j¦Ø Îà j¦ Î| ÏÛ that we have evaluated the effectiveness of internal }tÕl j¦Û d Øj¦ | }°Û j¦Û }°ãÛØ j¦ FRQWURO V\VWHPV RI WKH %DQN SHUWDLQLQJ WR ÀQDQFLDO j¦|dj¦|j¦ÎØyÎ|k}Ûj¦«dk reporting and we have disclosed to the auditors and the $XGLW&RPPLWWHHGHÀFLHQFLHVLQWKHGHVLJQRURSHUDWLRQ Øj¦d Øj¦| «j¦}o|i } · of such internal controls, if any, of which we are aware j¦«zj¦e¥ÎdyqÎdã|«Îi Î|e|Î« and the steps we have taken or propose to take to zj¦|j¦qf}j¦Îà}°ØØÎàj¦Ûq|j¦Ûz UHFWLI\WKHVHGHÀFLHQFLHV zÛÎ d. We have indicated to the Auditors and the Audit vÛ Î|k}Ûj¦« Øy k}Û Ø j¦ ||kØ Committee. dlØj¦Î L 6LJQLÀFDQW FKDQJHV LQ LQWHUQDO FRQWURO RYHU ÀQDQFLDO L d{j¦ z| ÏÛ }tÕl j¦ zã¥ « d Øj¦ | reporting during the year. y«ÎØ}¥}Ø¥| LL 6LJQLÀFDQW FKDQJHV LQ DFFRXQWLQJ SROLFLHV GXULQJ WKH year and that the same have been disclosed in the LL ¥j¦z|k|ÛØ««ÎØ}¥}Ø¥|Øye|j¦fk QRWHVWRWKHÀQDQFLDOVWDWHPHQWVDQG ÏÛÛj¦Ût}} j¦zlÎd LLL ,QVWDQFHV RI VLJQLÀFDQW IUDXG RI ZKLFK ZH KDYH LLL ÎÛq|j¦Û«d{k{vÖÛ {ÛtØyf|« become aware and the involvement therein, if any, of }° |{| dy j¦Û j¦¥oÛ j¦Û }ØØ qj¦Û d Øj¦ WKHPDQDJHPHQWRUDQHPSOR\HHKDYLQJDVLJQLÀFDQW UROHLQWKH%DQN·VLQWHUQDOFRQWUROV\VWHPRYHUÀQDQFLDO | }°Û {ÛÏÛ}tÕl«dÎãj¦Î reporting.

qÜ ~Üiqj§ }°k j¦¢}¥tkdj¦{| }° {|zj¦i ¤kj¦¥}j¦d{j¦Û i Ûi}ád *5DPHVK P S JAYAKUMAR Head (Corporate Accounts & Managing Director & CEO z| j¦¡ Taxation) and CFO y|¡ e¥ Date : 22.05.2019 Place : Mumbai

249 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 ueeYeebMe mebefJelejCe veerefle 'LYLGHQG'LVWULEXWLRQ3ROLF\ yeQkeÀ Dee@]HeÀ yeæ[ewoe kesÀ Mes³ejOeejkeÀ yeQkeÀ ceW Mes³ej-hetbpeer ceW GvekesÀ efveJesMe hej oes lejerkeÀeW mes Bank of Baroda’s shareholders earn a return on their he´efleHeÀue Dee|pele keÀjles nQ: investment in the Bank’s share capital in two ways: (1) Capital appreciation resulting from increase in the share . Mes³ej keÀer keÀercele ceW Je=ef× kesÀ heefjCeecemJe©he hetbpeeriele cetu³eJe=ef×, SJeb price, and . DeeJeefOekeÀ ueeYeebMe kesÀ ©he ceW vekeÀo he´efleHeÀue. (2) Cash return in the form of a periodic dividend. yeQkeÀ ceevelee nw efkeÀ Mes³ejOeejkeÀeW keÀes Deheveer ®eueefveefOe keÀer DeeJeM³ekeÀleeDeeW keÀes hetje keÀjves 7KH %DQN UHFRJQL]HV WKDW LWV VKDUHKROGHUV QHHG SHULRGLF kesÀ efueS DeeJeefOekeÀ ueeYeebMe keÀer DeeJeM³ekeÀlee nesleer nw. meeLe ner, ueeYeebMe keÀe Yegieleeve yeQkeÀ dividend to meet their liquidity needs. Also, payment of keÀer YeeJeer mebYeeJeveeDeeW kesÀ mebkesÀle kesÀ ©he ceW osKee peelee nw. yeQkeÀ kesÀ ³es he´³eeme jnles nQ efkeÀ dividend is seen as a signal of the Bank’s future prospects. DeefleefjkeÌle vekeÀo jeefMe keÀes Deheves Mes³ejOeejkeÀeW ceW mebefJeleefjle keÀer peeS. The Bank endeavors to distribute surplus cash to its meeceev³ele³ee, yeQkeÀ ueeYekeÀlee& Je

250 ä¡¡Ù }ÜÙ Dividend Distribution Policy

DevegueivekeÀ - S $QQH[XUH²$ ueeYeebMe Yegieleeve Devegheele keÀer DeefOekeÀlece Devegheele meercee nsleg ceeheob[ keÀe 0DWUL[ RI &ULWHULD IRU PD[LPXP SHUPLVVLEOH UDQJH RI cewefì^keÌme 'LYLGHQG3D\RXW5DWLR (Yeejleer³e efjpeJe& yeQkeÀ kesÀ heefjhe$e meb. DeejyeerDeeF&/2004-05/451; [eryeerDees[er. (As per RBI Circular No. RBI/2004-05/451; DBOD.NO.BP.BC. 88 / 21.02.067 / 2004- 05 dated May 04, 2005) SveDees.yeerheer.yeermeer. 88/21.02.067/2004-05 efoveebkeÀ 04 ceF&, 2005 kesÀ Devegmeej)

veJeue SveheerS Devegheele /Net NPA Ratio Metv³e mes DeefOekeÀ uesefkeÀve 3 5 … mes ueskeÀj … 5… mes ueskeÀj 7… mes keÀce ÞesCeer / 3… mes keÀce / CRAR Zero More than mes keÀce lekeÀ / From 5% to Category meerDeejSDeej / Metv³e / From 3% to lekeÀ / zero but less than 7 % less than 5% less than 3% ueeYeebMe Yegieleeve DevegHeele keÀer meercee / Range of Dividend Payout Ratio S efheíues 3 Je

meer efheíues 3 Je

251 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

,,,~ ,,,~±j§tÜj§ Basel III Pillar III Disclosures ãØÛq¥ àj¦j¦ ,,,z|z¥«j¦d|o¥j¦ Pillar III disclosures at March 31, 2019 as per Basel III guidelines },,,}°j¦tÛj¦ àj¦j¦Û etj¦Î}q} ,,,j¦ØÎØ of RBI have been disclosed separately on Bank’s website under }°j¦tÛj¦j¦d Øl¥Ødl}°j¦tj¦iliÎàek vj¦ j¦Î “Disclosure under Basel III” on the home page. The link to this section is KWWSZZZEDQNRIEDURGDFRP'LVFORVXUHVDVS http://www.bankofbaroda.com/Disclosures.asp ek v«||kØ}°j¦tÛj¦ziliÎà¡ The section contains the following disclosures : o¥j¦lØj¦i Øj¦}°j¦tÛj¦ 1. Qualitative and quantitative disclosures at march 31, 2019

• i}Ûj¦|j¦j¦} • Scope of Applications

• } qÛ}¥}ØØ • Capital Adequacy

• hqk}|}°j¦tÛj¦ • General disclosures on Credit Risk

• hqk}t¥Ü¦|j¦Ûj¦Ø}·Øj¦d{Û| • Credit risk - Portfolio subject to standardised approach

• ||hqk • Credit risk Mitigation

• }°ØãØj¦i§}q • Securitisation exposures

• qqk • Market risk

• }o|lØqk • Operational Risk

• àj ¦l ÎÛ« qzqk de¥dd Û Û • Interest rate risk in the banking book (IRRBB)

• j¦f t}tÛ¥qk • Counterparty risk } qÛj¦ mtj¦ 2. Composition of capital } qÛj¦ mtj¦{|dj¦Øi 3. Composition of capital – reconciliation requirements |j¦} qÛkØ«j¦ÛkØi 4. Main features of regulatory capital instruments |j¦} qÛkØ«j¦Û }¥|i ØÕ 5. Full terms and conditions of regulatory capital instruments àj ¦l ÎÛyØ«j¦ie§tÛ}°j¦tÛj¦ 6. Equities disclosures for banking book positions Ûqd|}Ø 7. Leverage ratio

252 ›¸¸½¢’¬¸ Notice

}tNOTICE ºãöÌãŠ ‚ãùãû¹ãŠ ºãü¡ãõªã heÇOeeve keâeÙee&ueÙe : yeÌ[ewoe YeJeve, DeuekeâeHegjer, Je[esoje 390 007 keâeheexjsš keâeÙee&ueÙe : yeÌ[ewoe keâeheexjsš meWšj, meer-26, peer yuee@keâ, yeebõe-kegâuee& keâe@chueskeäme, yeebõe (hetJe&), cegbyeF& – 400 051 (JesyemeeF&š: www.bankofbaroda.com) Bank of Barodra +HDG2I¿FHBaroda Bhavan, Alkapuri, Vadodara - 390 007. &RUSRUDWH2I¿FHBaroda Corporate Centre, C-26, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 (Website: www.bankofbaroda.com) WxlNg NOTICE >SUĬk_kgIWkUmKkSmhlDlWÌWlalESDk^u ªdkhmDt la>[§D@[yUk NOTICE is hereby given that the 23rd Annual General Meeting o of the Shareholders of Bank of Baroda will be held on Thursday, Dt e^_Vk_DŌDìdédklft Dgk]kÆ^[ª uODFŁdk_Kn WDxÿkSo 27th June 2019 at 10.00 a.m. at Pandit Deendayal Upadhyay [KtUmWU^ka8YkÅ^k^WF_FhDp u akeYkNêÈavNDt gk]Wt5Kdk Nagar Gruh, Opp. Kailash Party Plot, Near Ajwa Chowkdi, Ajwa IyDPmDt YkgdPxU_k]g¤ 2YÆWhxFm Road, Vadodara - 390 019, to transact the following business: gk]kÆ^Dk^ªdkhm ORDINARY BUSINESS: ]Ug´^k2 Item Number 1: To discuss, approve and adopt the Balance Sheet of the Bank [§DDt ]kIDª t SaWYý]kIn Dxg]kĮdfª Dª t ak\hklW as at 31st 0DUFK 3UR¿W DQG /RVV$FFRXQW IRU WKH \HDU atEat tEŌ]g]klhS4dlVD¤ t Dk^ªlWÕYkUWSTkDk^ªDakYŌY_lWUeDt ended 31st March, 2019, the report of the Board of Directors on ]PaDìå_YxN2 ªC_SaWYý>dn 2atEŌY_atEkY_m±DŌDìå_YxNªY_ldIk_ the working and activities of the Bank for the period covered by D_Wk4W]xUWÿUkWD_Wkd6ÆhÖdmDk_D_Wk¤ WKHDFFRXQWVDQGWKH$XGLWRU¶V5HSRUWRQWKH%DODQFH6KHHW n and Accounts. ldetfDk^ªdkhm SPECIAL BUSINESS: ]Ug´^kY2 2oKm5^xKW Item Number 2: Capital Plan 2019-20 lWÌWlalESg2DÐYY_>DldetfgDÐY2 Dt łY]ldIk_D_Wk>d¤ 28lIS 7RFRQVLGHUDQGLIWKRXJKW¿WSDVVZLWKRUZLWKRXWPRGL¿FDWLRQ Yk>KkWtY_Yå_dSªWDt gkT^kYå_dSªWDt l[Wk8gtYkå_SD_Wk the following resolution as a “Special Resolution. gDÐY2 Ykå_S lD^k KkSk hu lD Khk2 \m 5dÔ^D hx e^_Vk_DŌt Dt “RESOLVED THAT subject to Statutory/Regulatory approvals 4W]xUWglhSgkldlVDldlW^k]D4W]xUWDt 4Å^VmW[§DDk_mDYWm LQFOXGLQJ 6KDUHKROGHUV DSSURYDO ZKHUHYHU UHTXLUHG DV n 2 n 2 per applicable laws/regulations, authority be and is hereby 8Yø]Ō Dk 4ªW >d24S_R 2 4lVlW^] 4lVlW^] _kÕům^Dp S given pursuant to the provisions of the Banking Companies [§D ÿ[2VW>d2ldldVÿkdVkW ^xKWk ^xKWk >d2[§D@[yUk $FTXLVLWLRQ DQG 7UDQVIHU RI 8QGHUWDNLQJV $FW $FW The Nationalised Banks (Management and Miscellaneous e^_>dt 2[uOD¤ ldlW^]WDt ÿkdVkWŌDt 4Wg_R]n C_\k_Sm^¤ Provisions) Scheme, 1970 (Scheme) and the Bank of å_dª[§D 5_[m57 \k_S g_Dk_ KmB57 \k_Sm^ ÿlS\lSo >d2 Baroda (Shares and Meetings) Regulations, 1998 and other ldlW]^[xPª gt[m C_4Tdk6g[k_t]^Tk4Y¤ tl±SlDgm4Æ^ÿklVDk_m applicable provisions, if any, and subject to the approvals, consents, sanctions, if any, of the Reserve Bank of India Dt 4W]xUWŌgh]lS^ŌÖdmDn p lS^Ō^lUDx7hŌDt 4Å^VmW>d2?gmeSŎ (“RBI”), the Government of India (“GOI”), the Securities lW[2VWŌC_5exVWŌDt 4Å^VmWKx?gt4W]xUWDìÖdmDn p lS]8WD¤ t and Exchange Board of India (“SEBI”), and / or any other Ĭk_k^TkldlhSlD>Kk>C_lKgD2 t la>[§DDt lWUeD]t PaĬk_kgh]lS2 DXWKRULW\ DV PD\ EH UHTXLUHG LQ WKLV UHJDUG DQG VXEMHFW WR VXFK WHUPV FRQGLWLRQV DQG PRGL¿FDWLRQV WKHUHWR DV PD\ EH ÿUkWDìKk>STk6WldlW^]Ō^Tkgt[m 6Ô^@ZDo u lYNa>PlPg³axK_2 prescribed by them in granting such approvals and which may å_³dk^_]N¤ zg ldlW^]W 57gmPm5_ ldlW^]W gt[m gImD_Ro be agreed to by the Board of Directors of the Bank and subject [kÅ^Sk>>d ÿDNmD_R 5dÔ^DSk> ldlW^W] ^Tk gexlVS to the regulations viz., SEBI (Issue of Capital and Disclosure 2 2 2 2 5HTXLUHPHQWV 5HJXODWLRQV ,&'5 5HJXODWLRQV 6(%, ldUemldlW]^ÿ[t 2VW \k_Sgt[kh__hWtdkatÓ^lĉDt Ĭk_kÿlS\lSKk_mo /LVWLQJ2EOLJDWLRQV 'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV ^k 4S_R 2 ldlW^]W ^Tk g2exlVS 5_[m57gt[m Ĭk_k lWVkªå_S , 2015 as amended, the Foreign Exchange Management (Transfer or Issue of Securities by a Person Resident Outside lUeklWUe[¥ §lD2 FldlW^]W4lVlW^]Dt ShS4lVgIWkBo Yå_YýŌ2 India), Regulation, 2017 as amended and in accordance with C_ÖYĶmD_RŌ\k_Sm^ÿlS\lS>do 2ldlW]^[xPª4lVlW^]>d24Æ^ the applicable rules, regulations, guidelines, circulars and g\makFldlV^ŌC_g\m4Æ^go 2FSÿklVDkå_^Ōgtg]^g]^Y_ldlhS FODUL¿FDWLRQVLIDQ\SUHVFULEHGE\WKH5%,6(%,QRWL¿FDWLRQV FLUFXODUVDQGFODUL¿FDWLRQVXQGHUWKH%DQNLQJ5HJXODWLRQ$FW

253 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 ldlW^]WŌC_?gtÖNvD>³gIKD¤ t gkTlD>F>gIm[ĦSkD_k_ŌDo t 1949, Securities and Exchange Board of India Act, 1992 and all other applicable laws and all other competent authorities from 4Wg_R]n Khk¤ 2[§DDt 6l³dNme^_gt Im[Ħho § [§DDt et^_Vk_DŌDì time to time and subject to the Listing Agreements entered gh]lShu>d26gDt Ĭk_k[§DDt lWUteD]2Pa 6gDt YĲkS6gt[xPª LQWRZLWKWKH6WRFN([FKDQJHVZKHUHWKHHTXLW\VKDUHVRIWKH DhkKk>FklKg]?gmDx7gl]lS\mekl]ag]LmKk>FmKx6gg¤ 2DÐY Bank are listed, consent of the shareholders of the Bank be and is hereby accorded to the Board of Directors of Ĭk_kÿU°4lVDk_ŌglhS6gDt 4lVDk_ŌDkÿ^xFD_WtDt la>FlOShx the Bank (hereinafter called “the Board” which shall be 4Tdk6gDt YĲkSFlOSDìF^mhx Dx\k_S]^k\k_SD¤ t [kh_UÖSkdtK deemed to include any Committee which the Board may Ĭk_k^kÿxÖYt³NgĬk_k^k?gtlDgmUÖSkdtKĬk_kŁD_x ŁY^t have constituted or hereafter constitute to exercise its powers including the powers conferred by this Resolution) to create, µ^k_hhKk_WygyD_x]ký SDDt Dn aÿml]^]glhS[§DDt ÿÂ^tDł offer, issue and allot in one or more tranches (including with Dt 6SWt6l³dNme^_4ht SkÿkĮgª 2ÖTkFSÖTkWW ³^57Ym Zvax@Wo SURYLVLRQIRUUHVHUYDWLRQRQ¿UPDOORWPHQWDQGRUFRPSHWLWLYH basis of such part of issue and for such categories of persons YlÊaDlWFª] >ZYmB 4lVDk_lWFª]>Pm5_KmPm5_6l³dNmDklWKm as may be permitted by the law then applicable) by way of Èatg]N4lWdk^¤ ªYå_dSªWm^lP[¤I_KugtldldVÿRkla^ŌC_4Æ^lDgm offer document (s) /prospectus or such other document (s), in ÿRkam^k6WDt l]®Rgt[kKk_]Ð^Do t ÿml]^]å_^k^SKxdSª]kWIDSkn ,QGLDRUDEURDGVXFKQXPEHURIHTXLW\VKDUHVRIIDFHYDOXHRI Rs.2/- each of the bank including premium aggregating up to 6l³dNme^_Yt 2Km[o §DDt ŁD_xDìDn aÿklVDp SY2KmDo t 4SF2 ªS Rs 11,900/- crore (Rupees Eleven Thousand Nine Hundred hxKxlD[§DDk_mD2 YWm 8Yø]ŌDk4KªW>d24S_R 4lVlW^]2 FURUH RQO\ E\ ZD\ RI YDULRXV PRGHV VXFK DV 4XDOL¿HG DìVk_k > Dt 4WłY[§DDìÿklVDp SYKmDì8¸IS]gm]khC_u Institutions Placement (QIP) / Follow on Public Offer (FPO) n 2o 5LJKWV,VVXHV$'5*'53ULYDWH3ODFHPHQWRI(TXLW\ 6gÿDk_Kk_mlD>Kk>lDD2 t Æþg_Dk_Dìe^_Vkå_Skh]t ek[t §DDì Compulsorily Convertible Debentures or any other mode or 6l³dNmY2KmDo t gtD]WhxIkhdhlPÖDk8t 2NY_hx^k[kk_\kd combinations of these at such premium/discount to the market SULFH ZKLFK WRJHWKHU ZLWK WKH H[LVWLQJ 3DLGXS (TXLW\ VKDUH Dt ÿlSÿml]^]Y_glKS@Z_Kk_mC_5[p 2lNS 8gg]^akFldlVo capital shall be within the total authorized capital of the Bank Ĭk_k4W]lSÿkĮdn ugt®tRmDt Ó^lĉ^ŌC_6Ô^Do t dugt\kFDxÿlSÖYVê of Rs.3000 crore, being the ceiling of the Authorized Capital 5Vk_Y_C_lDgmZ]Dx5[ª 2NWDt 5_±RDt ÿkdVkWglhS D_WthSt n of the Bank as per Section 3(2A) of the Banking Companies $FTXLVLWLRQDQG7UDQVIHURI8QGHUWDNLQJV $FWLQVXFK >SUĬk_k4lVDz p SlD^kKkSkhu a way that the Central Government shall at all times hold not 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulDÿlS\lS^ŌDk?gklWFo ª] OHVVWKDQRIWKHWRWDOSDLGXS(TXLW\FDSLWDORIWKH%DQN @Z_ ^k 5d2NW 4hSkÿkĮª g2ÖTkFS ÖTkWW ³^57Ym o gkdªKlWD “RESOLVED FURTHER THAT, such issue, offer or DOORWPHQW RI 6HFXULWLHV PD\ DOVR EH E\ ZD\ RI 4XDOL¿HG lWFª]4lVDk_lWFª]lWKmÖTkWWlWFª]Dt ^klDgm4Æ^S_mDt gtKx Institutions Placement (QIP) / Follow on Public Offer (FPO) 8Y^ĉDkWn WŌĬk_kÿU°hxDo t Kå_>lD^kKk>Fk4lS5[2NWldDÐY 5LJKWV,VVXHV$'5*'53ULYDWH3ODFHPHQWRI(TXLW\ C_?gtlDgm@Z_Dt gkT^k8gDt l[WkÿlS\lS^ŌDklWFo ª]ÖTkWW / Compulsorily Convertible Debentures or any other mode or combinations of these as may be provided by applicable C_5[2NW[§lD2 FD2 YWm 8Yø]ŌDk4lVúhR>d2hÖSkS2_R 4lVlW^] laws, with or without over-allotment option and that such gt[m Y2KmDklWFo ª]>d2ÿDNW5dÔ^DSk> 4lVlW^]2 offer, issue, placement and allotment of securities be made DVSHUWKHSURYLVLRQVRIWKH%DQNLQJ&RPSDQLHV $FTXLVLWLRQ (57gmPm5_ldlW^] Dt ÿkdVkWŌDt 4WłYC_gn t[m5_[m57 and Transfer of Undertakings) Act, 1970, the SEBI (Issue of STk?gt4Æ^ÿklVDk_mKugk\m8Y^ĉg]LkKk>Ĭk_kKk_mlUeklWUn eŌ¥ &DSLWDO DQG 'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQV C_?gtg]^^kg]^Ō]6gS_hg¤ tC_?gtlW^]deSŎY_lD^kKk> (“ICDR Regulations”) and all other applicable guidelines issued by the RBI, SEBI and any other authority as applicable, lKÆh[xP¤ ª4YWtYRo lddª tDklVDk_Dt 4Wgk_8lISg]Ln t and at such time or times in such manner and on such terms 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulDKk_mlD>KkWtdkat6l³dNm and conditions as the Board may, in its absolute discretion, e^_8WÖNvD>³gIt K]¤ g¤ Im[ĦlD>Kk>o F2 tKhk1[§DDt dSª]kW6l³dNm WKLQN¿W´ “RESOLVED FURTHER THAT WKH (TXLW\ 6KDUHV WR EH e^_gt Im[ĦlD>F>ho § issued shall be listed with the stock exchanges where the 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulD8Y^ªĉlWFn ª]lWFª]ŌDt H[LVWLQJHTXLW\VKDUHVRIWKH%DQNDUHOLVWHG´ g2[2V]?gmDì]S^kDì]SŌDxS^D_W¤ tDkg]ÖSÿklVDk_[xPªDt Ykg “RESOLVED FURTHER THAT, in respect of the aforesaid hxFkKx57gmPm5_4lVlW^]Ō]g¤ [ĦÿkdVkWŌDt 4Wgk_lWVkªå_SDì issue/s, the Board shall have the absolute authority to decide, 2 n such price or prices not below the price as determined in F7Dì]SŌgtD]WhŌ6gS_hgtC_Khk1Dhé\m5dÔ^Dhx4úRm accordance with relevant provisions of ICDR Regulations, in ÿ[2VDŌDt gkTldIk_ld]egª tC_^khk]mUk_ŌC_^k4Æ^gakhDk_Ō such manner and wherever necessary, in consultation with the lead managers and /or underwriters and /or other advisors, C_^k6gÿDk_Dt lW^]deSŎDt 4Wgk_Kx[xPn ª4YWtYRo lddª tDklVDk_ and/or such terms and conditions as the Board may, in its gt57gmPm5_4lVlW^]Ō4Æ^4lVlW^]ŌC_lDgmC_4Æ^akFo absolute discretion, decide in terms of ICDR Regulations,

254 ›¸¸½¢’¬¸ Notice

DkWWŌlW^]ŌldlW^]ŌC_lUeklWUo eŌC_^kIkh¥ ÿÖSkldSlWdt teD other regulations and any and all other applicable laws, rules, regulations and guidelines, and/or whether or not the [§D]dS¤ ª]kWe^_Vk_Dht ^kWhé § proposed investor(s) are existing shareholders of the Bank.” 5Ft^hgDÐYYkå_SlD^kF^klD2 57gmPm5_4lVlW^]ŌDt 4Å^k^ “RESOLVED FURTHER THAT LQ FDVH RI D TXDOL¿HG ȭȠDt ]Skl[D4hn SkÿkĮgª 2ÖTkFSÖTkWWDt ]k]at]¤ institutions placement pursuant to Chapter VI of the ICDR D ÿlS\lS^Ōo Dk 5[2NW 57gmPm5_ 4lVlW^]Ō Dt 4Å^k^ ȭȠ Dt Regulations D WKH DOORWPHQW RI 6HFXULWLHV VKDOO RQO\ EH WR 4XDOL¿HG 4SF2 ªS5Wtdkat4hSkÿkĮgª 2ÖTkFSE_mUUk_ŌDxhmlD^kKk>Fk6g Institutions Buyers within the meaning of Chapter VI ÿDk_DìÿlS\lS^ŌDkYo _mS_mDo t gt\FSkWhxFkC_?gn tÿlS\lS^Ōo of the ICDR Regulations, such Securities shall be fully Dk5[2NW6gg2DÐYDt lUWgtlUWŌDt \mS_^k?gtlDgmg]^ paid-up and the allotment of such Securities shall be completed within 365 days from the date of passing this ]Y¤ _khxKk>FklKgDì57gmPm5_4lVlW^]Ō]o g]^g]^Y_¤ resolution, or such other time as may be permitted under 4W]lSUmF7hn u the ICDR Regulations from time to time. E [§D57gmPm5_4lVlW^]ŌDt 4lVlW^] Dt ÿkdVkWŌDk b) The Bank is pursuant to proviso to Regulation 176(1) of ICDR Regulations authorized to offer shares at a 4Wg_RD_n tFklKg]Æ^¤ WS]Dì]SY_Yko 2IÿlSeSSDDt [ĘtY_e^_t GLVFRXQWRIQRWPRUHWKDQ¿YHSHUFHQWRQWKHÀRRUSULFH UWt tDkÿklVDk_lU^kF^khu F WKHUHOHYDQWGDWHIRUWKHGHWHUPLQDWLRQRIWKHÀRRUSULFH F ÿlS\lS^Ōo Dì Æ^WS]o Dì]S lWVkªå_S D_WtDìg2[2lVS Sk_mE of the securities shall be in accordance with the ICDR 57gmPm5_ldlW^]ŌDt 4Wgk_hxFm n Regulations.” “RESOLVED FURTHER THAT the Board shall have the 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulD[xPªDx^hÿklVDk_ DXWKRULW\ DQG SRZHU WR DFFHSW DQ\ PRGL¿FDWLRQ LQ WKH C_elĉhxFmlDdhÿÖSkd]lDgm?g¤ t5exVWDxÖdmDk_D_tKx SURSRVDODVPD\EHUHTXLUHGRULPSRVHGE\WKH*2,5%, \k_Sg_Dk_\k_Sm^å_dª[§D\k_Sm^ÿlS\lS>do 2ldlW]^[xPª?gtÖNvD / SEBI/Stock Exchanges where the shares of the Bank are listed or where the Debt Securities to be issued are proposed >³gIKKhk¤ 2[§DDt e^gt ªgIm[Ħho 4Tdk?g§ tÿklVDkå_^ŌĬk_klWFª] to be listed or such other appropriate authorities at the time of 6Ô^ o 5[2NW C_ 8WDì gIm[ĦSko Dt la>8WDt 4W]xUWn gh]lS according / granting their approvals, consents, permissions 4W]lSC_ÖdmDn p lSÿUkWD_StUSt tg]^4Ytl±S4Tdk4lV_xlYShŌC_ and sanctions to issue, allotment and listing thereof and as agreed to by the Board.” Kugm[xPªĬk_kgh]lSUmKk> “RESOLVED FURTHER THAT the issue and allotment of 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulD^lU8Y_xĉÿlS\lS^ko 2 aforesaid Securities, if any, to NRIs, FIIs and/or other eligible >W5_57>Z5757C_^k4Æ^YkýldUemlWdt teDŌDxKk_mC_ foreign investments be subject to the approval of the RBI 5[2lNSDìKk_hmhSxdhldU§ emldlW]^ÿ[t 2VW4lVlW^]Dt under the Foreign Exchange Management Act, 1999 as may be applicable but within the overall limits set forth under the ShS\k_Sm^å_dª[§DDt 4W]xUWDn t 4VmWhxFkKugklDakFhxSkho u Act and by other regulators, as applicable” Y_2S4lVlW^]C_4Æ^ldlW^k]DŌDn t ShSÖTklYS8Y^ªĉg]úgm]kBn 2 “RESOLVED FURTHER THAT WKHVDLGQHZHTXLW\VKDUHV Dt \mS_Kugk\makFho Du t 4VmWhxFm to be issued shall be subject to the Bank of Baroda (Shares 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulDKk_mlD>KkWtdkatW> and Meetings) Regulations,1998 as amended and shall rank in all respects pari-passu ZLWKWKHH[LVWLQJHTXLW\VKDUHVRI 8ĉ6l³dNme^gt ª[§D@Z[yUk e^_d[t uOD 4lVlW^]^Tk the Bank including dividend, if any, in accordance with the g2exlVSDt 4VmWhŌFtC_]yKUk6l³dNmeo ^_Dt t gkTg]ŁY_§DDt hŌFt statutory guidelines that are in force at the time of such C_8Wgk2ldlVDlUeklWUeŌD¥ t 4Wgk_GxlfSlD>F>ak\kn 2e^lUDx7 declaration.” hxDt la>hDUk_hŌFtKx?gmGxfRkDt g]^Y_ÿd°hŌ “RESOLVED FURTHER THAT the Board be and is hereby p authorized to enter into and execute all such arrangements 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulD6gg2DÐYDxakFD_Wo t with any Lead Manager(s), Banker(s), Underwriter(s), Dt la>[xPªÿklVDp ShxC_8gt6gDt la>ÿklVDp SlD^kKkSkhlDdhu Depository (ies), Legal Advisor(s) and all such agencies as lDgm4úRmÿ[VD ÿ[VDŌ [§D_ [§D_Ō hk]mUk_ _Ō lPYxlKN_m ^Ō may be involved or concerned in such offering of aforesaid 2 2 Securities and to remunerate all such institutions and agencies DkWWmo gakhDk_ _Ō C_ ?gm g\m >K¤lg^Ō Kx 8Y^ªĉn ÿlS\lS^Ōo Dx by way of commission, brokerage, fees or the like and also to @Z_D_WtC_?gtg\mg2ÖTkBSTk>K2 ¤lg^ŌDxD]meWāxD_tKeÐDn enter into and execute all such arrangements, agreements, ^k?gtlDgm4Æ^S_mDt gtak\ÿUkWD_WtC_6W>K¤lg^ŌDt gkT?gtg\m memoranda, documents, etc., with such agencies.” “RESOLVED FURTHER THAT for the purpose of giving ÿ[2VŌg]LySŌ²kYWŌUÖSkdtKŌ5lUDx[WkWtd8WDxlWÕYklUSD_Wtgt effect to the above, the Board, in consultation with the Lead g2[Ħhx^k8g]ekl]ahxD¤ t gkT?gmÓ^dÖTkD_td8gtlWÕYklUSD_t Managers, Underwriters, Advisors and / or other persons 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulD8Y^ªĉDxakFn D_Wo tDt as appointed by the Bank, be and is hereby authorized to

255 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 la> [xPªDx4úRmÿ[2VDŌ 4P__k6N_Ō2 gakhDk_Ō STk^k [§D Ĭk_k determine the form and terms of the issue(s), including the class of investors to whom the aforesaid Securities are to be lW^ĉ4Æ^Ó^lĉ^Ōgn tY_k]eD_Dª t >SUĬk_kÿklVDz p SlD^kKkSkhlDdhu allotted, their number to be allotted in each tranche, issue lWFª] ]Ō lKg]úkhDŌDìdx®¤ tRm\mekl]ahlKWD§ t la>ÿlS\lS^Ōo price (including premium, if any), face value, premium amount Dk5[2NWlD^kF^kÿÂ^tD4e]2 8WDì5[¤ 2lNSg2´^klWFª]Dì]S on issue/conversion of Securities/ exercise of warrants/ redemption of Securities, rate of interest, redemption ÿml]^] glhS ^lU Dx7 hx 4lDS2 ]Ð^o ÿlS\lSo Dt Kk_mg2Yå_dSªW SHULRGQXPEHURIHTXLW\VKDUHVSUHIHUHQFHVKDUHVRURWKHU dk_2NexVW Dt ÿ^xF Y_ ÿml]^] _kle Ê^kK U_ exVW 4dlV 6l³dNm securities upon conversion or redemption or cancellation e^_Ō4lV]kWmet ^_ŌDìgt 2´^k^kg2Yå_dSªWD_WtY_4Æ^ÿlS\lS^ko 1^k of the Securities, the price, premium or discount on issue/ ÿlS\lS^ŌDo t exVW^k_ĥD_WkDì]SÿlS\lS^ŌDxlWFo ª]g2Yå_dSªWD_Wt conversion of Securities, rate of interest, period of conversion, ¿[LQJRIUHFRUGGDWHRUERRNFORVXUHDQGUHODWHGRULQFLGHQWDO Y_ÿml]^]^kJoNÊ^kKU_gYå_dS2 ªWDì4dlVå_DvPªlSlTDklW^SW matters, listings on one or more stock exchanges in India and ^k[hm[2UmSTkg2[2lVS^kghk^D]k]at\k_SSTk^kldUe]t >D^k¤ / or DEURDGDVWKH%RDUGLQLWVDEVROXWHGLVFUHWLRQGHHPV¿W´ 4lVDÖNvD>³gIKY_g¤ Im[ĦSkDklWVko ª_RD_gDSkhKu ugk[xPª “RESOLVED FURTHER THAT such of the aforesaid 4YWtYRo lddª tDklVDk_]8lISg]L¤ t Securities as are not subscribed may be disposed off by the 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulD8Y^ªĉen ^_ŌDkKxlDt Board in its absolute discretion in such manner, as the Board 4l\U°Whéh[xP§ ªDt YRo lddª tDklVDk_gt8gÿDk_gtlWYNkWlD^kKk PD\GHHP¿WDQGDVSHUPLVVLEOHE\ODZ´ gDSkhKu ugk[xPª8lISg]LSTkKt ugkldlVĬk_kÖdmDk^ªhx “RESOLVED FURTHER THAT for the purpose of giving 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulD6gg2DÐYDxakFD_Wo t effect to this Resolution, the Board, be and is hereby authorised to do all such acts, deeds, matters and things as Dt la>[xPªDx>SUĬk_kÿklVDz p SlD^kKkSkhlDdu t?gtg\mDp Â^Dk^ª it may in its absolute discretion deem necessary, proper and ]k]atC_ImK¤D_tKx8gDt YRo lddª tDklVDk_]5dÔ^D8lIS>d¤ 2 GHVLUDEOHDQGWRVHWWOHDQ\TXHVWLRQGLI¿FXOW\RUGRXEWWKDW dk2JWm^hŌC_dh?gtlDgmgdkalU³DS4Tdkg2UhDklWYNkWD_t t may arise in regard to the issue, of the shares/ securities Kxe^_ŌÿlS\t lS^ŌDxKk_mD_Wo tDt [k_t]8ÂYÆWhxgDS¤ thC_dhg\m§ and further to do all such acts, deeds, matters and things, UÖSkdtKŌC_Sh_m_ŌDx4lS]ŁYU2 Wt tC_lWÕYklUSD_WtDt la>?gtg\m ¿QDOL]HDQGH[HFXWHDOOGRFXPHQWVDQGZULWLQJVDVPD\EH necessary, desirable or expedient as it may in its absolute Dp Â^Dk^ª]k]atC_ImK¤D_tKx5dÔ^Ddk2JWm^4Tdkg]mImWhŌ GLVFUHWLRQGHHP¿WSURSHURUGHVLUDEOHZLWKRXWEHLQJUHTXLUHG Kx8gDt YRo lddª tDklVDk_]8Y^¤ ĉ8lISC_dkn 2JWm^g]LKk>t C_2 to seek any further consent or approval of the shareholders ^h\mlD6gDt la>e^_Vk_DŌDìDx7C_gÌ]lS4Tdk4Wt ]xUWan tWk or authorise to the end and intent, that the shareholders shall 4Ytl±SWhéhC_^h4l\ÿk^hu lDeu ^_Vk_DŌDìB_gt t^h]kWkKk>Fk be deemed to have given their approval thereto expressly by lD8ÆhŌWt6gg2DÐYDt ÿklVDk_Ĭk_k4l\Ó^ĉŁYgt8gDx4YWk4W]xUWn the authority of the Resolution.” UlU^kht u “RESOLVED FURTHER THAT the Board be and is hereby authorized to delegate all or any of the powers herein conferred 5Ft^h\mgDÐYYkå_S2 lD^kKkSkhulD[xPªDx>SUĬk_kÿklVDz p S to the Capital Raising Committee of the Board/Managing lD^kKkSkhlDdh8Y^u ªĉgn 2DÐYDxakFD_Wo tDt la>[xPªDìY2Kmo 'LUHFWRU &KLHI([HFXWLYH2I¿FHURUWRWKH([HFXWLYH'LUHFWRU ÿklĮgl]lSÿ[2VlWUeD>dt 2]´^Dk^n ªYkaD4lVDk_m4TdkDk^ªYkaD (s) to give effect to the aforesaid Resolutions.” lWUeD DŌ t Dx 6g]¤ ÿU° g\m 4lVDk_Ō 4Tdk lDÆhé 4lVDk_Ō Dx Item Number 3: Issue of Shares to Employees and Whole ÿÂ^k^xlKSD_¤ Time Directors of the Bank ]Ug´^k2 [§DDt D]ªIkå_^ŌC_YoRªDklaDlWUteDŌDxet^_ 7RFRQVLGHUDQGLIWKRXJKW¿WWRSDVVWKHIROORZLQJUHVROXWLRQ Kk_mD_Wk as a Special Resolution: lWÌWlalESg2DÐYY_ldIk_D_WkC_8lISÿSmShxWtY_8gtldeft “RESOLVED THAT LQPRGL¿FDWLRQRIWKH6SHFLDO5HVROXWLRQ g2DÐYDt łY]Ykå_SD_Wk¤ passed at the Extraordinary General Meeting held on 21.01.2019, pursuant to the provisions of The Banking gDÐY2 lD^k KkSk hulDlUWk2D Dx 5^xlKS Dì F7 &RPSDQLHV $FTXLVLWLRQ DQG7UDQVIHU RI 8QGHUWDNLQJV $FW 4gkVk_Rgk]kÆ^[uOD]Ykå_SlD>F>lde¤ fgt 2DÐYDt 5exVW]¤ 1970 (“The Act”), The Nationalized Banks (Management and [§lDF D2 YWm 8Yø]Ō Dk 4lVúhR C_ 4S_R 2 4lVlW^] Miscellaneous Provisions) Scheme, 1970 (“The Scheme”) 4lVlW^] _kÕům^Dp S [§D ÿ[2VW C_ ldldV ÿkdVkW ^xKWk and Bank of Baroda (Shares and Meetings) Regulations, 1998 (“The Regulations”), as amended from time to time ^xKWk C_[§D@[yUk e^_>dt 2[uOD¤ ldlW^]W and subject to the approvals, consents, permissions, and ldlW^]W g]^g]^Y_^Tkg2exlVSC_\k_Sm^å_dª[§D \k sanctions, if any, of the Reserve Bank of India (“RBI”), the å_[§D \k_Sg_Dk_ KmB57 \k_Sm^ÿlS\lS>do 2ldlW]^[xPª Government of India (“GOI”), the Securities and Exchange gt[m ÖNvD>³gIKKhk¤ 2[§DDt 6l³dNme^_gt Im[Ħho Kx\makF§ hxo %RDUGRI,QGLD ³6(%,´ 6WRFN([FKDQJH V LQZKLFK%DQN¶V C_^kDx74Æ^ÿklVDk_m6gg2[2V]K¤ ugm\m5dÔ^DSkhxDt 4W]xUWn HTXLW\ VKDUHV DUH OLVWHG ZKHUHYHU DSSOLFDEOH DQG RU DQ\ RWKHUDXWKRULW\DVPD\EHUHTXLUHGLQWKLVUHJDUGDQGVXEMHFW gh]lS4W]lSC_]n K2 _m ^lUDx7ho Du t 4VmWC_?gt4W]xUWUn Wt tDt WRVXFKWHUPVFRQGLWLRQVDQGPRGL¿FDWLRQVWKHUHWRDVPD\ la>?gmg\meSŎlW^]ŌC_8W]g¤ 2exVWKugk8WDt Ĭk_klWVkªå_SlD^k be prescribed by them in granting such approvals and which

256 ›¸¸½¢’¬¸ Notice

Kk>Dt 4VmWC_lKggt[§DDt lWUeD]t PaDkgh]ShxWk5dÔ^D2 may be agreed to by the Board of Directors of the Bank and hxC_gt[m e^_5Vkå_SD]t Ik_mak\ ldlW^]WDª t ÿkdVkWŌ subject to the provisions of SEBI (Share Based Employee %HQH¿WV 5HJXODWLRQV DV DPHQGHG XS WR GDWH Dt 4VmW5KDìSk_mESD^Tkg2exlVS 6gDt [kUgt[mldlW^]WDt (hereinafter referred to as SBEB Regulations), guidelines, łY]g¤ 2Ul\SlD^kKk>Fk \k_Sm^å_dª ª[§DgtC_g\m4Æ^g2[2lVS if any, prescribed by the RBI, SEBI and all other relevant ÿklVDkå_^ŌĬk_klWVkªå_SlD>F>?gtlUeklWUe ^lUDx7h¥ D§ t 4Wg_Rn DXWKRULWLHV 1RWL¿FDWLRQVFLUFXODUV DQG FODUL¿FDWLRQV XQGHU ][¤ §lD2 FldlW^]W4lVlW^]\k_Sm^ÿlS\lS>do 2ldlW^]W[xPª the Banking Regulation Act, 1949, Securities and Exchange 4lVlW^]ldUemldlW]^ÿ[t 2VW4lVlW^]C_g]^g]^ Board of India Act, 1992, Foreign Exchange Management Act, 1999 and all other applicable laws from time to time Y_4Æ^g\makFDkWo WDo t 4SF2 ªS4lVgIWkYå_YýC_ÖYĶmD_RC_o and subject to the provisions of SEBI (Listing Obligations gt[m gIm^WUkl^ÂdC_ÿDNmD_R5dÔ^DSk>o ldlW^]W g2 t[m DQG 'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQV 2015 (SEBI >aBPm5_ 5KDìSk_mESD^Tkg2exlVS[m>g7lal]NtP [m>g7 (LODR) as amended upto date, Uniform Listing Agreement C_ WteWa ÖNvD >³gIK¤ @ 6lP^k >W>g7 lal]NtP Wk]D ÖNvD entered into by the Bank with the Stock Exchanges namely 2 BSE Limited (BSE) and the National Stock Exchange of India >³gIKŌD¤ t gkT[§DĬk_klD>F^t>DìDp SgIm^WD_k_Do t ÿkdVkWŌDt Limited (NSE) and subject to any applicable, approval(s), 4VmWC_lDgm\mg]^lDgmÿklVDk_mĬk_k4W]xUW4Wn ]lSC_]n K2 _mo permission(s) and sanction(s), at any stage, of any authority C_?gt4W]xUW4Wn ]lSC_]n K2 _mUo St tg]^?gtÿklVDkå_^ŌĬk_klWVkªå_S DQGVXEMHFWWRDQ\FRQGLWLRQ V DQGPRGL¿FDWLRQ V DVPD\ be prescribed or imposed by such authorities while granting ^klU>F>4WUn eŌDt t 4WłYDx7eSn ¦C_g2exVWlKggt[§DDt lWUeDt such approval(s), permission(s) and sanction(s) and which ]PaDkgh]ShxWkC_8g2 tÖdmDk_D_Wk5dÔ^Dhx[§DDt e^_Vk_DŌt may be agreed to and accepted by the Board of Directors Dìgh]lSKx>SUĬk_k[§DDt lWUeD]t Pa 6gD2 t [kUlWUeD]t Pa D2 t of the Bank, the consent of the shareholders of the Bank be and is hereby accorded to the Board of Directors of the Bank łY]g¤ 2Ul\SlD^kKk>FklKgª tlWUeD]t PaW2 tFlOSlD^khD_u tFk?gm (hereinafter referred to as “the Board” which shall be deemed gl]lSKx6gg2DÐYĬk_kÿUkWDìF7elĉ^ŌglhS4YWmelĉ^ŌDkÿ^xF to include a committee which the Board may have constituted D_tFmDkg]kdte]kWkKk>Fk DxÿUkWDìKk_hmhlKggu tdt>D^k8ggt or / may constitute, to exercise its powers including the 4lVD®Eak]2p ?g¤ tD]Ikå_^ŌKx\k_S]ª ^k\k_SD¤ t [kh_Dk^ªD__ht powers conferred by this resolution) to create, grant, offer, issue and allot, in one or more tranches, to such employees, hlKWg§ tSkÂY^ªh[u §DDt ÿ[2VlWUeD>dt 2]´^Dk^n ªYkaD4lVDk_mC_ whether working in India or outside India, which expression Dk^ªYkaDlWUeD DŌ D]t Ik_m Kª ugk\mlWUeD]t PaĬk_klWR2 ^la^kª VKDOOLQFOXGHWKH0DQDJLQJ'LUHFWRU &KLHI([HFXWLYH2I¿FHU Kk>D]Ik_mÖNvDø^^xKWk ^hkª 2Dt [kU[mB[m7>gYm>g Dt łY and Executive Director (s) of the Bank (“The Employees”), as may be decided by the Board, aggregating up to ]g¤ 2Ul\SlD^kKk>Fk Dª t 4SF2 ªSC_lWUeD]t PaĬk_k4YW2 tYRo lddª tD 15,00,00,000 (Fifteen Crore) QHZHTXLW\VKDUHVRIIDFHYDOXH gtlWVkªå_SlD>F>?gtlW^]ŌC_eSŎY_?gt]Ð^^k]o Ð^ŌY_ak\ko 2eDt of Rs.2/- (Rupees Two only) each, ranking pari passu with \FSkWglhS6głY]n lKgg¤ tlD\k_Sg_Dk_DìVkå_SkgtD]W WKHH[LVWLQJHTXLW\VKDUHVRIWKH%DQNIRUDOOSXUSRVHVDQG hxÿÂ^tDł łY>Ux]ký Dt 4lDS]Ð^Dt Da Yþh in all respects, including payment of dividend, under Bank 2 o n 2 of Baroda Employee Stock Purchase Scheme (hereinafter D_x W>6l³dNme^_6głY]t g¤ lKSÿUkW@Z_Kk_mC_5dp 2lNS referred to as “BOB-ESPS”), at such price or prices, and on D_gD¤ Kxg\m8ĥÔ^Ōht St dg\mgn 2U\Ŏ][¤ §DDt ]yKUk6l³dNmeo ^_ŌDt t such terms and conditions as may be decided by the Board in g]łY]kWtKk>F2 t its absolute discretion in such a way that Government of India holding does not come below 52.00%.” ^h\mgDÐYlD^kKkSkh2 ulD[§D>g[m7[mldlW^]WDt ldlW^]W “RESOLVED FURTHER THAT the Bank shall conform to the ][Sk>F>4W¤ gk_an tEk2DWWmlS^ŌDk4WYkaWD_n tFk DFFRXQWLQJSROLFLHVDVVSHFL¿HGLQ5HJXODWLRQRIWKH6%(% ^h\mgDÐYlD^kKkSkh2 ulDlWUeD]t Pa[mB[m7>gYm>g 2 Regulations. “RESOLVED FURTHER THAT the Board be and is hereby Dt 4SF2 ªSKk_m>d25d2lNS6l³dNme^_ŌDxÖNvD>³gIt KŌD¤ t gkTlD> DXWKRUL]HG WR WDNH QHFHVVDU\ VWHSV IRU OLVWLQJ RI WKH HTXLW\ F>>DìDp SgIm^WD_k_C_4Æ^akFo lUeklWUo eŌlW^]ŌC_ldlW^]WŌ¥ shares issued and allotted under the “BOB-ESPS”, on the Dt ÿkdVkWŌC_eSŎDt 4VmWlKWÖNvD>³gIKŌ]¤ [¤ §DDt 6l³dNme^_t stock exchanges where the shares of the Bank are listed, as gIm[Ħhdhk§ gIm[ĦD_WtDt la>g\m5dÔ^DDU]8OkWtDt la> per the terms and conditions of the uniform listing agreements o 2 o entered into with the stock exchanges and other applicable >SUĬk_kÿklVDp SlD^kKkSkhu guidelines, rules and regulations.” ^h\mgDÐYlD^kKkSkh2 ulDlWUeD]t PaC_gl]lSDx>SUĬk_k2 “RESOLVED FURTHER THAT the Board and Committee ^hÿklVDk_lU^kKkSkhlD[mB[m7>gYm>g DxakFu D_Wo tlWVkªå_S thereof be and is hereby authorized to implement, formulate, D_Wt ]Ð^ko 2lDS D_Wt 8g Y_ lWR^ª atWt C_ 8gtÿ\kdm[WkWtDt la> evolve, decide upon and bring into effect the “BOB-ESPS” on such terms and conditions as may be decided by the Board ?gtlW^]ŌC_eSŎY_KxlWUeD]t PaĬk_k[Wk>F>C_[mB[m2 DQG WR PDNH DQ\ PRGL¿FDWLRQ V FKDQJH V YDULDWLRQ V 7>gYm>g Dt lW^]ŌC_eSŎ]]¤ Ð^4dlVYkýSk]kWUo PD2 t g2[2V]Dx7¤ alteration(s) or revision(s) in the terms and conditions of the g2exVWYå_dSªWldldlVD_R^k5exVWD_Wt^k[mB[m7>gYm>g BOB-ESPS”, from time to time, including but not limited to, amendment(s) with respect to price, period, eligibility criteria Dx6gS_mDt gt_ĥD_WthNkWtg]kĮD_Wt^kg2exlVSD_WtKugklD or to suspend, withdraw, terminate or revise the “BOB- lWUeD]t Pa4YW2 t>DalddtDklVDk_gtlWVkªå_SD_tC_[mB[m

257 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

7>gYm>g DxakFD_Wo t]8ÂYÆWhxW¤ tdkatg\mÿĳŌDlOWk6^Ō^keDkB2 2 ESPS” in such manner as the Board may determine in its VROHGLVFUHWLRQDQGDOVRWRVHWWOHDOOTXHVWLRQVGLI¿FXOWLHVRU Dk\mg]kVkWD_gD¤ C_6gg2DÐYDt ÿklVDk_Dxe^_Vk_DŌĬk_klU^kt doubts that may arise in relation to the implementation of F^k?gk4W]xUW]kWkKk>FklD8WDì4lSå_ĉgh]lS^k4Wn ]xUWDìn the “BOB-ESPS” and to the shares to be issued pursuant 5dÔ^DSkDt [Fu_ÿÖSkldS[mB[m7>gYm>g Dt 4Wg_R]n e¤ ^_t WRWKHSURSRVHG³%2%(636´ZLWKRXWEHLQJUHTXLUHGWRVHHN Kk_mlD>KkgD¤ any further consent or approval of the Shareholders shall be deemed to have given their approval there to expressly by ^h\mgDÐYlD^kKkSkh2 ulDlWUeD]t PaDx>SUĬk_k>g[m7[m2 authority of this resolution.” ldlW^]W C_ 4Æ^ akFDkWo WŌo lUeklWUe¥ lW^]Ō C_ ldlW^]WŌ Dt “RESOLVED FURTHER THAT the Board be and is hereby 4WYkaW]n 8Y_xĉg¤ 2DÐYDxÿ\kdmD_WtDt la>[§DDt lWUeD]t Pa2 authorized to delegate all or any of the powers herein Dì gl]lS ÿ[V lWUeDt >d]´^ Dk^ªYkaD 4lVDk_m ^k Dk^ªYkaD conferred on it, to a Committee(s) of Directors, the Managing 2 2 n 'LUHFWRU &KLHI ([HFXWLYH 2I¿FHU RU ([HFXWLYH 'LUHFWRU V lWUeD DŌ ^k?gt t4Æ^4lVDk_mDxKugk\m8lISaFt4YWmg]ÖS or such RWKHURI¿FHU V RIWKH%DQNDVLWPD\GHHP¿WWRJLYH 4TdklDgm\melĉDxÿUkWD_WtDt la>ÿklVDp SlD^kKkSkhu effect to the aforesaid Resolutions in compliance with the SBEB Regulations and other applicable laws, guidelines, Dpp St[§D@[yUk rules and regulations.” FOR BANK OF BARODA Ym>gK^Dm n ]k_ ÿ[2VlWUeD>dt 2]´^Dk^n ªYkaD4lVDk_m P.S. Jayakumar 0DQDJLQJ'LUHFWRU &(2 ÖTkW][72n Place: Mumbai lUWk2D Date: 22nd May 2019 WxN NOTES: 1. EXPLANATORY STATEMENT Ó^k´^kÂ]Dldd_R The Explanatory Statement setting out the material facts ]Ug2´^k>d2Y_[uODDìDk^ªdkhmDt g2[2V]\ylSDSÃ^ŌDx¤ LQUHVSHFWRIWKHEXVLQHVVRIWKHPHHWLQJDWLWHPQR lWVkªå_SD_WtdkakÓ^k´^kÂ]Dldd_R6gDt gkTg2aµWhu 3 is annexed hereto. ÿv³gmDìlW^nlĉ 2. Appointment of Proxy: [uOD]\kFa¤ tWtC_]SUWt tDt la>Ykýe^_Vk_D[t uOD]\kFa¤ tWt A SHAREHOLDER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY C_]SUWt tDt la>4YWtÖTkWY_ÿv³gmlW^ĉD_gDn t FkgDt Fm (OTHER THAN AN OFFICER OR AN EMPLOYEE OF [§DDt lDgm4lVDk_m4TdkD]Ik_mDª t 4akdk4Æ^Dx C_^h THE BANK) TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF AND THE PROXY NEED NOT BE 5dÔ^DWhéhxFklDlW^ĉÿv³gm[n §DDke^_Vk_Dhxÿv³gmDkt A SHAREHOLDER OF THE BANK. No instrument of Dx7\mldatES[SDduVWhé]kWkKk>FkK[SDlDdh6ggIWkDo t Proxy shall be valid unless it is in Form “B” as annexed gkTg2aµW4Tdk[§DDìdt[gk6NY_\m8YaÊVZk][m ]ª \_kWhé¤ WR WKLV 1RWLFH DQG DOVR DYDLODEOH RQ %DQN¶V ZHEVLWH The Proxy, in order to be effective, must be received F^khx8ĉÿv³gmS\mÿ\kdm]kWmKk>Fm^lUdh[uODDìSk_mEgt DW+HDG2I¿FHRIWKH%DQNVLWXDWHGDW%DQNRI%DURGD D]gtD]lUWYdo ª4TkªSz enødk_KoWDxek][Kt KYC-AML Department, 7th Floor, Baroda Bhavan, R. S. SD^k8ggtYdo ª[§D@[yUkDt dk^gm>d2>>]>ald\kFÿVkW No. 576, R C Dutt Road, Opp. Centre Point, Alkapuri, Vadodara -390007 not less than four days before the Dk^kªa^dk2Sa[yUk\dW5_>gW2[_5_gmU°k_xP date of meeting i.e. on or before 4.00 p.m. on Friday, g¤N_Èdk6ND2 t gk]Wt4ÐDkY_m[yUk Fn K_kS DxÿkĮhxn 21st June, 2019 together with the Power of Attorney or other authority, if any, under which it is signed or a copy Kk>FmC_6gDt gkT]´Sk_Wk]k4Tdk4Æ^ÿklVDk_YýDìÿlSn RIWKDW3RZHURI$WWRUQH\RURWKHUDXWKRULW\FHUWL¿HGDVD KxlDWxN_mYlÊaD4Tdk]lKÖůtNĬk_kgÂ^klYShx8ĉ]´Sk_Wk]kn true copy by a Notary Public or a Magistrate unless such 4Tdk4Æ^ÿklVDk_Yý^lUYdo ª][¤ §D]K]kC_Y¤ 2KmDp SWlD^kF^k Power of Attorney or other authority has been previously hxDx\mgkT]\¤ KkKk>Fkt deposited and registered with the Bank. 3. Appointment of Authorised Representative: ÿlSlWlVDìlW^lĉ n No person shall be entitled to attend or vote at the meeting Dx7\mÓ^lĉlDgmD2 YWmDt ldlVdSÿlSlWlVDt łY][¤ uOD]\kF¤ as a duly authorized representative of a company/entity atWt4TdkdxNUWt tDt la>S[SDYkýWhéhxFkK[SDlD8gt>D unless a copy of the resolution appointing him as a duly DXWKRUL]HGUHSUHVHQWDWLYHFHUWL¿HGWREHWUXHFRS\E\WKH ^TkldlVÿklVDp SÿlSlWlVDt łY]lW^¤ ĉD_Wn tg2[2Vmg2DÐYDì>D Chairman of the meeting at which it was passed shall ÿlSlKgt8g[uODlKg]^hYkå_SlD^kF^kTkD¤ t 4Å^±Ĭk_kgÂ^ KDYHEHHQGHSRVLWHGDWWKH+HDG2I¿FHRIWKH%DQNDW

258 ›¸¸½¢’¬¸ Notice

ÿlSlalYDt łY]4l\ÿ]klRSWlD^kF^khx[¤ ODDìSk_mEgu Ik_t the address given above, not later than four days before the date of meeting i.e. on or before 4.00 p.m. on Friday, lUWYdo 4Tkª Sª eødk_Kn WDxek][Ko tSD^k8ggt 21st June, 2019. Ydo [ª DD§ t ÿVkWDk^ka^]ª 8Y_xĉYS¤ Y_K]kWD_lU^kF^khxt 4. Voting Rights: ]SklVDk_ In terms of sub-section (2E) of Section 3 of the Banking [§DDk_mD2 YWm 8Yø]ŌDk4KªW>d24S_R 4lVlW^]Dì2 &RPSDQLHV $FTXLVLWLRQV 7UDQVIHU RI 8QGHUWDNLQJV Act, 1970, no shareholder of the corresponding new Vk_kDì8YVk_k 7 Dt ÿkdVkWŌDt 4Wgk_Dn ¤ þm^g_Dk_gtl\ÆW Bank, other than the Central Government, shall be g2[ĦW^t[§DDkDx7\me^_Vk_DÖd^t 2Vkå_Se^_ŌDt t g2[2V][¤ §D entitled to exercise voting rights in respect of any shares Dt g\m e^_Vk_DŌt Dt Dn a ]SklVDk_ Dt Ug ÿlSeS gt 4lVD held by him/her in excess of ten per cent of the total voting rights of all the shareholders of the Bank. ]SklVDk_ÿ^nĉD_WtDkYkýWhéhxFk As per Regulation 10 of the Bank of Baroda General [§D @Z [yUk gk]kÆ^ e^_Ōt >d2[uOD¤ ldlW^]W ^Tk (Shares and Meetings) Regulations, 1998, if any share g2exlVSDt ldlW^]Dt 4Wgk_^lUen ^_Ux^k8ggt t4lVD stands in the names of two or more persons, the person Ó^lĉ^ŌDt Wk]Y_hSx]SUkWD§ t la>_lKÖN_]4¤ lDSÿT]Ó^lĉ2 ¿UVW QDPHG LQ WKH UHJLVWHU VKDOO DV UHJDUGV YRWLQJ EH deemed to be the sole holder thereof. Thus, if shares Dx8We^_ŌDk>DaVk_Dg]LkKk^t tFk4S3^lUe^_gt 2^ĉn DUHLQWKHQDPHRIMRLQWKROGHUVWKHQ¿UVWQDPHGSHUVRQ Vk_DŌDt Wk]Y_hSxÿT]Ó^lĉhm[§ uOD]\kFa¤ tWtDkYkýhu is only entitled to attend the meeting and vote on the C_Dt dadhhmU_ÖT7dxlNo 2F4Tdk[uOD]dxlN¤ 2F^lUdxlN2FDt Agenda either through remote e-voting or voting at the 4lVDk_Dkÿ^xFU_ÖT7dxlN2FDt Ĭk_kWhélD^kKkSkhDk^u ªgImo meeting, if voting right is not exercised through remote o e-voting. Y_]SUWt tDkYkýhxFk 5. Attendance Slip-Cum Entry Pass (The Attendance 8YlÖTlSYIêghÿdteYý 8YlÖTlSYIê Slip): et^_Vk_DŌDìgnldVkDt la>6gWxlNgDt gkT7dxlN2FDt la> For the convenience of the Shareholders, Attendance avF6W 57Pm >d2YkgdPªDt 5dÔ^D ldd_R glhS 8YlÖTlS Slip-Cum-Entry Pass is attached with this Notice, with YIêghÿdteYýg2aµWheu t^_Vk_DŌDt Ykg7dxlN2FgnldVkgt UHTXLVLWH GHWDLOV SUHSULQWHG ZLWK WKH HYRWLQJ ORJLQ LG and password. Shareholders have an option to cast their ]SUtWtDkldDÐYhKx7dxlNu 2FgnldVkDkak\Whé8OkWkIkhSt votes by using remote e-voting platform. Those who do dtdklfªDgk]kÆ^[uODDìSk_mEDx[uODÖTaY_4YWkdxNUt not exercise remote e-voting facility can cast their vote gDSth?g§ tg\met^_Vk_DŌÿv³gmVk_DŌÿklVDp SÿlSlWlV^Ō at the voting to be conducted at the venue of the meeting on the date of the AGM. Such Shareholders / Proxy gt4Wn_xVhlDdu t8YlÖTlSYIê]¤lÿ2NlD>F>ldd_RDxKk2Ia¤ KROGHUV $XWKRUL]HG 5HSUHVHQWDWLYHV DUH UHTXHVWHG WR C_^lUDx6EkamÖTkWhxSx8gª t\_¤8g]¤lWVkªå_SÖTkWY_4YWt YHULI\WKHGHWDLOVSULQWHGRQWKH$WWHQGDQFH6OLSDQG¿OO hÖSk±_D_¤C_8gt[uODDt ÖTkWY_gnYnUªD_U¤ÿv³gmet^_Vk_D LQEODQNVLIDQ\DQGDI¿[WKHLUVLJQDWXUHVDWWKHVSDFH Dt 4lVDp SÿlSlWlV8YlÖTlSYIêghÿdteYý]¤ÖYĶD_¤lD provided therein and surrender the same at the venue of the meeting. Proxy / Authorized Representative of dhÿv³gmh^kÿklVDu p SÿlSlWlVDt łY]¤hKx\makFu ohx shareholders should state on the Attendance-Slip as ]SYýDYkg>2ůmYkgDxIWkdDn t g]^]SYýDÿkĮD_WtDt la> “Proxy” or “Authorized Representative” as the case may gnYnUªD_WkhxFk be. ?gte^_Vk_DlKÆhŌWt t7dxlN2FĬk_kYhatgthm4YWt]SDkÿ^xF Shareholders, who have already exercised their vote through remote e-voting, can attend the meeting but D_la^kh[u uOD]\kFa¤ tgDSthY_§ 2S4YWkdxNYn WWhéUn gDt ¤ Ft shall not be entitled to cast their vote again. Uo_ÖT7dxlN2FSTkdklfªDg]kÆ^[uOD]¤dxNDt la>lWlUªĶ 6. Cut-Off Date for remote e-voting and voting at the Sk_mEet^_Vk_DŌDt _lKÖN_Dk[2UhxWk AGM - Closure of Register of Shareholders: [§D@Z[yUkgk]kÆ^ e^_>dt 2[uOD¤ g2exVWldlW^]W Pursuant to Regulation 12 of Bank of Baroda General Dt ldlW^] Dt gkT YlOS gIm^Wo [kÅ^Sk >d2ÿDNmD_R (Shares and Meetings) Amendment Regulations, 2008, read with Regulations 42 of SEBI (Listing Obligations and 5dÔ^DSk> g2 t[mldlW^]WDìldlW^]g2´^kSTkD2 YWm 'LVFORVXUHV 5HTXLUHPHQWV 5HJXODWLRQV DQG 5XOH ÿ[2VW>d2ÿekgW lW^]Dt lW^]Dt 4Wg_Rn ]¤ [§DDt 20 of Companies (Management and Administration) Rules, e^_Vk_DŌDk_lKÖN_STket ^_4t S_R_lKÖN_F2 Łdk_Kn Wo 2014, the Register of Shareholders and Share Transfer Books of the Bank will remain closed from Thursday, gtFŁdk_Kn WSD UxWŌlUWglhS dédklfo Dgk]kÆ^ª 20th June 2019 to Thursday 27th June 2019 (both days [uODDt 8ĥÔ^gt t[2U_hFkSUWt gk_dn te^_Vk_DlKWDt t Ykgeødk_n inclusive) for the purpose of 23rd Annual General Meeting. KWSD[o §DDt e^_ht d§ tU_ÖT7dxlNo 2F4Tdk[uOD]¤ $FFRUGLQJO\ VKDUHKROGHUV KROGLQJ %DQN¶V 6KDUHV DV RQ th dxlN2FDt ]kÅ^]gt[uOD]\kFa¤ tWtSTk[uODDìDk^ªgImY_]SUo Wt t Friday, 19 June 2019 will be authorized to attend and vote for the Agenda of the meeting either through remote Dt la>ÿklVDp ShŌFt e-voting or voting at the meeting.

259 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Uo_ÖT7dxlN2F 7. Remote E-Voting gt[mDt gIm^WD_k_>do 2ÿDNmD_R5dÔ^DSk ldlW^]W Pursuant to Regulation 44 of SEBI (Listing Obligations DQG'LVFORVXUHV5HTXLUHPHQWV 5HJXODWLRQV\RXU Dt ldlW^]Dt 4Wg_R]n 5YD¤ t [§DDxe^_Vk_DŌDx[t uODDt Bank is pleased to provide remote e-voting facility to WxlNg]8Ða¤ tlES]UŌY_6at³ůvlWD]kÅ^]gtU_ÖT7dxlNo 2FDì enable Shareholders to cast their votes electronically gldVkÿUkWD_Sn thò>ÿgÆWSkhx_hmh6gldf^]u e¤ ^_Vk_DŌDxt on the item mentioned in the notice of the meeting. lWÌWkWgk_gn lISlD^kKkSkho u Shareholders are informed as under in this regard: D [§DWt7dxlNFÈatNZk]8YaÊVD_kWª thSt DkdêDÈ^N_e^gt ª a) The Bank has appointed Karvy Fintech Private 2 n 2 o Limited as the remote e-voting agency to provide ÿklaDxU_ÖT7dxlNo 2F>K¤gmDt łY]lW^¤ ĉlD^khn u the e-voting platform. E Uo_ÖT7dxlN2FhtSnYxNªagx]dk_KoWDxg[hn b) The Portal will open for remote e-voting at 9.00 [Ktgt[nVdk_KoWDxek][KtSDYo_k a.m. on Monday, 24th June 2019 and will remain open throughout on all the days up to 5.00 p.m. on g]Ênak_htFk UxWŌlUWglhS Wednesday, 26th June 2019 (both days inclusive). F Uo_ÖT 7dxlN2F duDlÐYD hu 6g lWlUªĶ Sk_mE 4TkªS c) Remote e-voting is optional. Shareholders of [nVdk_KoWDx]So ª^k4]So ª lP]Nu tå_ak6ºP łY]¤ the Bank holding shares either in physical or in dematerialized form, as on the Cut – off Date i.e. [§DDt e^_Vkå_SD_Wt tdkate^_Vk_D6at t³ůklWDłYgt4YWk Wednesday 19th June 2019, may cast their vote dxNUgDt ¤ Ft electronically. G Uo_ÖT7dxlN2Fgtg[2 2lVS4WnUtelWÌWkWngk_h§ d) The instructions for remote e-voting are as under: i. The Shareholders eligible to vote as on the Ⱥ Kx e^_Vk_Dt 8Y^ªĉn DN@PtN Dx dxN UWt thSt n aforesaid Cut-Off Date, to use the following Ykýh7dxlN§ 2FDt la>KoWDxg[h[Kn t URL for e-voting: https://evoting.karvy.com YxNªa EaWn t Y_ lWÌWlalES ^5_>ao Dk 8Y^xF D_¤ on opening of the same on 24th June, 2019 at 9.00 a.m. https://evoting.karvy.com ii. Enter the login credentials i.e., user id and ȺȺ avF6Wøt P¤lgâDì4TkªSWxlNgDz t gkTg2aµW8YlÖTlS password mentioned in the Attendance Slip annexed on this Notice. YIê]8lÐalES^¤ K_57Pm>do 2YkgdPªÿldĶD_¤ iii. After entering the details appropriately, click on ȺȺȺ8Y^ĉłYgn tÊ^y_kUKªD_WtDt [kUavF6WY_l³aDD_¤ LOGIN. iv. You will reach the Password change menu Ⱥɇ5YYkgdPª[Ua¤]Wt ]o Yh¤ òI2 F¤ tKhk25YDx4lWdk^ªS3 ZKHUHLQ \RX DUH UHTXLUHG WR PDQGDWRULO\ 4YWkYkgdPª[UaWkhxFkW^tYkgdPª]>D4Y_D¤ t g change your password. The new password Șgtȱ >Dav4_Dt g Ȳgtɋ >D4D STk>D shall comprise of minimum 8 characters with 2 at least one upper case (A-Z), one lower case ldefDt u _t³N_glhSÆ^WS]Do u _t³N_hŌFtlgÖN]5YDx (a-z), one numeric value (0-9) and a special Yham[k_avlFWD_Stg]^YkgdPª[UaWthSt STk]x[k6an character. The system will prompt you to change your password and update any contact W27]aKt ugtg2YDª Dt Ê^y_t]Dx74īSWKkWDk_mU¤ Wmhxt GHWDLOVOLNHPRELOHHPDLOHWFRQ¿UVWORJLQ2 SDVVZRUGFRQ¿GHQWLDO C_6gtFxYWm^_EWthtSn4Â^2SgkdVkWm[_S¤ v. You need to login again with the new credentials. ɇ 5YDxW^tøt P¤lgâgtYW3avF6WD_WkhxFk vi. On successful login, the system will prompt you n to select the EVEN i.e., Bank of Baroda. On ɇȺ gZaSkYdo ªD avF6W Dt [kU lgÖN] 5YDx ȜȭȜȥ the voting page, the number of shares as held 4TkªS[§D@[yUkDkI^WD_WthSt lWUn eU¥ Fkt by the shareholder as on the Cut-off Date (19th June 2019) will appear. You will have option to dxlN2FYķY_lWlUp ĶSk_mE Kª W Y_eo ^_Vk_Dt vote for all the Resolutions in one go at the TOP Ĭk_kVkå_Se^_ŌDìgt 2´^kÿUleShxFm5YȘȪȪȜȥȫª by click on ASSENT or DISSENT. Alternatively you may vote individually for each Resolution 4TdkțȠȪȪȜȥȫKugk\m]k]akhxY_l³aDD_gDSt separately by clicking ASSSENT or DISSENT hY§ lĶD_Wn thSt ȦȢ Y_l³aDD_n ¤4Æ^TkYå_dSªWD_Wt IRU HDFK 5HVROXWLRQ &OLFN 2. WR FRQ¿UP HOVH CANCEL to modify. 2QFH \RX FRQ¿UP \RX hSt ȚȘȥȚȜȣ Y_l³aDD_n ¤>D[k_YnlĶD_WtDt will not be allowed to modify your vote. [kU5YdxN]¤Yå_dSªWWhéD_gDStdxlN2F4dlV During the voting period, shareholders can Dt Uy_kWet^_Vk_DgDÐYY_dxNU2 tWtDt YodªlDSWm login any number of times till they have voted on the resolutions. \m[k_avF6WD_gDSkhu

260 ›¸¸½¢’¬¸ Notice

ɇȺȺ >Dg4lVDZxla^xlP]t NEkSk_EWu dkat et ^_Vk_DŌDxt vii. Shareholders holding multiple folios / demat account shall choose the voting ÿÂ^DZxla^xlP]t NEkSu Dt t la>4aFgdxlNt 2Fÿlø^k process separately for each folio / demat D_WmhxFkSTklYet^_Vk_DDp Y^kWxND_¤lD[§lD2 F account. However, Shareholders may please note that in terms of Section 3 (2E) of the D2 YWm 8Yø]ŌDk4KªW>d42 2S_R 4lVlW^] Banking Companies (Acquisition & Transfer DìVk_k 7 Dt 4VmW\k_Sg_Dk_Dt 4lSå_ĉ4Æ^ of Undertakings) Act, 1970, no Shareholder Dx7et^_Vk_DDx[§DDìDaet^_Vkå_SkDt gt other than Government of India is allowed n to exercise voting rights in excess of 10% of 4lVDDt la>dxND_WtDì4W]lSWhéhxFmn the total shareholding of the Bank. ɇȺȺȺ8Y^ªĉn 4WłYn YxNªa [2U hx Kk>Fk >d2[2U hxWtY_^h viii. The portal will close as aforesaid and the facility will be disabled immediately on the closure. gldVkSÂDkag]kĮhxKk>Fmn ix. The Bank has appointed M/s S.N. Ⱥɉ [DW§ ®m>g>W4Wt Sg2 ā]R^W^k8WDì4Wn YlÖTlS]n ]¤ ggt ª $QDQWKDVXEUDPDQLDQ &R &RPSDQ\ >g>W4WSgā]R^W>PDDtlDgm\m\kFmUk_ÿl³Nlgu F Secretaries, as the Scrutinizer for conducting 2 n 2 2 2 the e-voting process in a fair and transparent D2YWmglIdDxU_ÖT7dxlNo Fÿlø^kDx8lIS>d2 Yk_Ueê2 manner. S_mDtggt IklaSD_W2 ht St gn dm±DD2 tłY]lW^¤ ĉlD^khn u x. Institutional Shareholders (i.e. other than ɉ g2ÖTkFSe^_Vk_D 4Tkt ªSÓ^lĉ>I^z >Z>W5_57o LQGLYLGXDOV +8) 15, HWF DUH UHTXLUHG WR send scanned copy (PDF/JPG Format) of the 5lUDt 4lSå_ĉ KxdxNUWt thSt ÿklVDn p ShŌ8ÆhldlVdS¤ z relevant Board Resolution/ Authority letter etc. ÿklVDp S hÖSk±_DSkªBD2 t 4Wÿ]klRSn hÖSk±_Ō glhS together with attested specimen signature of g2[Ħ[xPªg2DÐYÿklVDk_YýDìÖD§ P YmPm>ZKtYmKm the duly authorized signatory (ies) who are ÿlS ɄȴɃɆɅȺȿȺɋȶɃ#ɄȿȲȴɀȿȶɅ Y_ 7 ]at Dt ]kÅ^]gt authorized to vote, to the Scrutinizer through e-mail : [email protected] g2dm±DDx\KWm4Yt tl±Shu [L 6KDUHKROGHUV DFTXLULQJ 6KDUHV EHWZHHQ WKH ɉȺ ?gte^_Vk_Dt Kx dé >Km>] Dt la> WxlNgg2l±Į Cut –Off Date for dispatch of the Notice for dklfDª å_YxNª Dt ÿtfR hSt n DN@PtN >d2 23rd AGM / Abridged Annual Report 2018-19 7dxlN2FhSt DN@Pn tNDt [mIe^_ÿkĮD_St thSTk§ and the Cut-Off Date for E-voting and have registered their e-mail IDs with their respective 4YWk7]a57Pm4YWt tg2[2lVSPmYmDt gkT_lKÖN_ DP, shall be sent communication by RTA in D_Sth8Æh§ 6gg¤ 2[2V]5_Nm>D¤ t ]kÅ^]gtgIWkUmo this regard. Such other Shareholders may visit Kk>Fm?gt4Æê^_Vk_Dldd_RÿkĮD_Wt thSt [n §DDì %DQN¶VZHEVLWHWRJHWWKHGHWDLOV d[gk6NUt Et ¤ [LL ,Q FDVH RI DQ\ TXHULHV \RX PD\ UHIHU WKH )UHTXHQWO\ $VNHG 4XHVWLRQV )$4V IRU ɉȺȺ5YDk^lUDx7ÿĳhxSx5YȹɅɅɁɄȶɇɀɅȺȿȸȼȲɃɇɊȴɀȾ shareholders and e-voting User Manual for Y_Pk8WaxP4W\kF]n 8YaÊVe¤ ^_Vk_DŌDt t la>4³g_ Shareholders available at the download section YJo tKkWdkat ÿĳ ȝȘȨ STket ^_Vk_DŌDt t la>7dxlNF2 of https://evoting.karvy.com. or contact Mr. S.V. ^K_]Æû 4aDk4daxDWD_gDSht 4Tdk]§ ggt Dkdêª Raju, DGM of Karvy Fintech Pvt. Ltd, (Unit : o o Bank of Baroda), Karvy Selenium Tower B, D2 È^N_eo ^_ÿkla ^t lWN[o D@[yUk Dkdêg§ at lW^]t Plot 31-32, Gachibowli, Financial District, Nvd_ [m ÈavN W2 >d2 FkIm[kdam Zk^Wlgâ¤ Nanakramguda, Serilingampally, Hyderabad – lPlÖů³NWkWkø]Fkgn å_lat F]YÐamh2 U_k[kUDu t 500 032 at e-mail [email protected] at phone no. 040 6716 2222 OR at 1800 345 4001 (toll 8Y]hkÿ[VD®m>gdm_kK2 go Ut _\kfgo ´^k2 free). ^k NxaĀì Y_gYD2 ª D_gDSht § 8. VOTING PROCESS AT THE AGM dklfªDgk]kÆ^[uOD]¤InWkdÿlø^k The voting on the agenda items shall be done by remote Dk^ªgImDì]UŌY_dxlNo 2FU_ÖT7dxlNo 2FSTk[uOD]dxlN¤ 2FDt e-voting as well as by voting at the meeting. Those who ]kÅ^]gthxFmKxU_ÖT7dxlNo 2FldDÐYDkÿ^xFWhéD_Sthd§ t do not exercise the option of remote e-voting shall be [uODDìSk_mEDxdklfDgk]kÆ^[ª uODDt ÖTaY_5^xlKSlD> entitled to participate in the voting to be conducted at the venue of the AGM on the date of the meeting. Voting KkWtdkatdxlN2F]4YWkdxNU¤ Wt tDt YkýhŌFt[uODDt 4Å^±Ĭk_k6g paper / tablet will be provided immediately after an g2[2V]GxfRklD>KkW¤ tDt S_n 2S[kUdxlN2FYtY_Nu[atN8YaÊVD_k> announcement in this regard is made by the Chairman Kk>F2 tC_[uOD]8YlÖTS4¤ lS]e2 ^_Vk_DĬk_kdxNUt Wt tSDdxlN2F of the meeting and will continue till the last shareholder ÿlø^kKk_m_hFmt present, cast his vote. 6gÿ^xKWgtWxlNgDt gkT\Kt tF>4TdkY2KmD_RDt g]^Kk_m Voting paper / tablet shall be provided at the Counters set up for this purpose to the Shareholders / Proxy lD>F>dxlN2FYtY_YkgDxdklYgK]kD_WtDt [kUe^_Vk_DŌÿv³gmt holders/ Authorized Representatives on surrender of Vk_DŌÿklVDp SÿlSlWlV^ŌDxDk82N_Y_dxlN2FYtY_Nu[atN8YaÊV Voting Paper Pass dispatched along with the Notice or D_k>Kk>F2 tdédklfDgk]kÆ^[ª uODhSt Dk^n ªgImDìg\m]UŌDo t issued at the time of registration. The number of votes ZLOOEHHTXLYDOHQWWRWKHQXPEHURIVKDUHVKHOGE\WKHP

261 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

g2[2V]dxNŌDìg¤ 2´^klWlUĶSk_mE4Tkª ªSKz WSD8WDo t as on the Cut-Off Date i.e., 19th June 2019 in respect of rd Ĭk_kVkå_Se^_ŌDìgt 2´^kDt g]kWhxFm all the items of the Agenda for the 23 AGM. . InWkdDkgdm±D2 9. SCRUTINIZERS AT POLL ]ggt ª>g>W4WSgā]Rn ^W>z PDDYWmglId[uODDìDk^ªgImo 0V 61 $QDQWKDVXEUDPDQLDQ &R &RPSDQ\ 2 2 2 2 Secretaries shall act as Scrutinizer in respect of all Dìg\m]UŌDt g2U\]ª g¤ 2dm±DDt łY]Dk^¤ ªD_¤Ftdt[uODDt Uy_kW the agenda items of the meeting. They shall also act 5^xlKShxWtdkamdxlN2F]4Æ^e¤ ^_Vk_DDt t gkTg2dm±DDt łY as Scrutinizer along with another shareholder at the ]\mDk^¤ ªD_¤Ft4Å^±lDgm4Æ^8YlÖTSSTk]SUWt tDt la>Yký meeting for the voting to be conducted at the Meeting. e^_Vk_DDx8WDìgh]lSgt tlĬSm^gdm±DDt łY]Dk^¤ ªD_WthSt n The Chairman may announce the name of any other 2 shareholder present and entitled to vote to act as second GxlfSD_gDSth§ scrutinizer subject to his consent.

å_]xN7dxlN2FSTk]SUkWDkYå_Rk] 10. RESULTS OF REMOTE E-VOTING AND POLL dklfDgk]kÆ^[ª uOD]U¤ _ÖT7dxlNo 2FSTk]SUkWDt g]lDSYå_Rk]t The consolidated results of remote e-voting and voting at DìGxfRkUxlUWŌDt \mS_^k[uODDt 4S]2 DìKk>FmSTk6g¤ t[§D the AGM will be announced within two days or at the end ÖNvD>³gIKC_DkdêDìd¤ t[gk6NY_\m4YaxPlD^kKk>Fk of the Meeting and will also be hosted on the websites of YSt]¤Yå_dSªWak\k2e4lVUte the Bank, Stock Exchanges and Karvy. D ak\k2e Dt \FSkWn Dt la>[§D >W>gPm>agmPm>g>a Dt 11. Change of Address / Dividend Mandate: a) The Bank for sending Notices / communications will gkTY2KmDp S[§DEkStC_g2[2lVSlPYvlKN_mgt5_Nm>Ĭk_k use the details of address registered with the NSDL/ Pk8WaxPlD>F>ldd_RDk8Y^xFD_tFk6at³ůklWDZk]]ª ¤ CDSL and downloaded by RTA from the respective e^__EWt tdkatgUÖ^ŌDx>SUĬk_kgz lISlD^kKkSkho lDPm]u uN Depository. Members holding shares in electronic EkSt]Y¤ KmDS8WDt [§Dldd_Rg[lVSlPYvlKN_mgh\kFmDt form are hereby informed that their address 2 p 2 2 registered in Demat Account should be updated gkT4īSWhxWtIklh>lKggtlD[hm[2UmDt ełhxWn tgtYdo ª with respective Depository Participant so as to get 4īSWlÖTlSÿkĮDìKkgDt [§D^k6gDt _lKÖůk_C_e^_t updated immediately. The Bank or its Registrar and hÖSk2S_R>K¤N6at³ůklWDZk]]ª e¤ ^_Vk_RD_Wt tdkatgUÖ^Ōgt 6KDUH 7UDQVIHU $JHQW FDQQRW DFW RQ DQ\ UHTXHVW received directly from the members holding shares [§Dldd_R^k[§D4lVUe]t lDgmYå_dS¤ ªWhSt gmVn ÿkĮlDgmt in electronic form for any change of address. Such \m4W_xVY_Dk_n ªdk7WhéD_gDSkh6gÿDk_DkDx7\mu changes are to be advised only to the Depository Yå_dSªWDt dagUÖ^ŌDt lPYvKN_mgh\kFmDxhmglISlD^ko Participant of the Members. KkgDSkhu b) Members holding shares in physical form are UHTXHVWHG WR DGYLVH DQ\ FKDQJH RI DGGUHVV DORQJ E\ylSDłY]e¤ ^__EWt tdkatgUÖ^Ōgt4W_xVhn lD^lU8WDu t with a valid documentary evidence and formal YSt]Yå_dS¤ ªW hx Sx 6gDì gIWko duV UÖSkdtKm gkà^ C_ UHTXHVW DSSOLFDWLRQ GXO\ VLJQHG LPPHGLDWHO\ WR CYIkå_D4W_xVYýDn t gkTSÂDka[§DDt _lKÖůk_C_e^_t WKH %DQN¶V 5HJLVWUDU DQG 6KDUH 7UDQVIHU $JHQW hÖSkS_R>K¤N4TkªS]ggu ªDkdêDÈ^N_e^_ÿklaht U_k[kUu i.e. Karvy Fintech Private Limited, Hyderabad. 2 2 o Members holding shares in electronic form must DxU6a¤ t³ůvlWDłY]e¤ ^__EWt tdkatgUÖ^ŌDx4YWtYSt]¤ register change in address with their respective lDgmÿDk_Dt Yå_dSªWDx4YWgt [2 lVSlPYvlKN_mgh\kFm2 Depository Participant only and not to the Bank Dt gkThm_lKÖN_D_WkIklh>[D4Tdk[§ DD§ t _lKÖůk_ or Bank’s Registrar and Share Transfer Agent. C_et^_hÖSkS_R>K2 ¤NDxgIWkUo Wt Dì5dÔ^DSkWhéht u F 0HPEHUV DUH UHTXHVWHG WR LQYDULDEO\ TXRWH WKHLU respective folio number/s (for those holding shares F gUÖ^Ōgt4W_xVhn lDdu t[§D4Tdk[§DDt _lKÖůk_C_e^_t in physical form) and their respective DP Id / Client hÖSk2S_R>K¤NDt gkTlDgm\mÿDk_Dt YýÓ^dhk_]4YW¤ t Id number (for those holding shares in electronic/ g2[2lVSZxla^xW2[_ 8WDt la>lKWDt Ykge^_\ylSDłY]t ¤ demat form) in any correspondence with the Bank h C_4YWkPmYm57PmúkhD57PmW§ 2[_ 8WDt la>lKWDt RU%DQN¶V5HJLVWUDUDQG6KDUH7UDQVIHU$JHQW Ykge^_6at t³ůvlWDłY]h¤ Dk8Ða§ tE4dÔ^D_¤ 12. Consolidation of Folios: The Members holding shares in physical form in identical Zxla^xDkg]tDW RUGHURIQDPHVLQPRUHWKDQRQHDFFRXQWDUHUHTXHVWHG lKWe^_Vk_DŌDt t Ykg>Dgt4lVDEkSt]4YW¤ tg]łYWk]gt WRLQWLPDWHWRWKH%DQN¶V5HJLVWUDUDQG6KDUH7UDQVIHU \ylSDe^_ht 8Wg§ t4W_xVhn lDdu t_lKÖůk_>d24S_R>K2 ¤NDxe^_t Agent, the ledger folio of such accounts together with WKHVKDUHFHUWL¿FDWHVWRHQDEOHWKHPWRFRQVROLGDWHDOO ÿ]kRYýŌDt gkT?gtEkSŌDt la>atK_Zxla^xDìgIWkUo SklD¤ WKH KROGLQJV LQWR RQH DFFRXQW 7KH VKDUH FHUWL¿FDWHV [§D>DhmEkSt]g\mVkå_Se¤ ^_ŌDkg]t DWD_gDt t Yķkp 2DWg2[2Vm will be returned to the members after making necessary 5dÔ^DDk_ªdk7D_WtDt [kUgUÖ^ŌDxe^_ÿ]kRYý^Tkg]^t endorsement in due course. ayNklU>Kk>F2 t 13. Dematerialization of Physical Holdings – A SPECIAL \ylSDłY]¤et^_Vkå_SkDk4\ylSDìD_R>Dldetf4Wn_xV REQUEST: gt[mWt4YWmÿtgld²lĮg´^klUWkDDt ]kÅ^] SEBI vide its Press Release No. 12/2019 dated 2 2 27.03.2019 has decided that except in case of gt^hlWR^la^khª lDÿlS\u lS^ŌDo t ůk2g]meW4Tdkůk2gYxlKeWDx

262 ›¸¸½¢’¬¸ Notice

JxD_ÿlS\lS^ŌDo t 4S_Rg2 2[2Vm4Wn_xVY_S[SDDk_ªdk7WhéDì transmission or transposition of securities, requests for effecting transfer of securities shall not be processed Kk>FmK[SDlDgt?gmÿlS\lS^ko 2lDgmlPYvlKN_m unless the securities are held in dematerialized form Dt gkT4\ylSDłY]¤Whé_EmKk>24S3h]et^_Vk_DŌgt4Wn_xV with a depository w.e.f. 01.04.2019+HQFHZHUHTXHVW D_SthlDd§ t4YWt\ylSDet^_ŌDxSn_2S4\ylSDłY]Yå_dlS¤ ªS the shareholder to kindly Demat their physical holding D_ka¤ immediately. \ylSD łY ]e¤ ^_t _EWdkat t g\m e^_Vk_Dt 4YWm e^_t Vkå_Sk Dk For dematerialization, shareholders may contact their respective Depository Participant, where they 4\ylSDìD_R D_W4YWt 8ggt [2 lVS2 lPYvlKN_m gh\kFm ggt YD2 ª PDLQWDLQ WKHLU UHVSHFWLYH GHPDW DFFRXQW %HQH¿WV RI D_ gDSht Khk§ 2 8WDk 4YWk Pm]Nt EkSk hu 4\ylSDìD_R Dt ak\ dematerialization are as follows: i) Hassle free transfer ii) lWÌWlalESh3 Ⱥ § {ÎØ4S_R ȺȺ e2 ^_ÿ]kRYýŌDìFt ]en UFmgn t 1RWKUHDWRIORVVRIVKDUHFHUWL¿FDWHLLL 'LUHFWDQGSURPSW FUHGLW RI 'LYLGHQG &RUSRUDWH EHQH¿WV LY 1RPLQDWLRQ [Ikd ȺȺȺ ak\keDvYō_2 tNak\ŌDxgmVdÂdå_SK]kD_k^kKkgDSkht u facility v) Direct application through ASBA/IPO, etc. Ⱥɇ Wk]kDWg2 ldVk ɇ >>g[m>57YmB5lUDn t Kå_>gmVk5dUWt 14. Unclaimed/Unpaid Dividend, if any of previous lYJatdfªDkUkdkWlD>F>\nFSkWWlD>F>ak\k2e^lU years: Dx7hx 6KDUHKROGHUVDUHUHTXHVWHGWRFDUHIXOO\QRWHWKDWSXUVXDQW e^_Vk_D^hWxND_at ¤lD[§DDk_mD2 YWm 8Yø]ŌDk4KªW>d2 WRDPHQGPHQWLQ%DQNLQJ&RPSDQLHV $FTXLVLWLRQDQG Transfer of Undertakings) Act, 1970 vide “The Banking 4S_R STkld°m^g2 2ÖTkWldlV g2exVW 4lVlW^]Dt ]kÅ^] &RPSDQLHV $FTXLVLWLRQ DQG 7UDQVIHU RI 8QGHUWDNLQJV gt[§DDk_mD2 YWm 8Yø]ŌDk4KªW>d24S_R 4lVlW^]]2 ¤ And Financial Institutions Laws (Amendment) Act, 2006, g2exVWDt ZaÖdŁYgkdªKlWD±týDt [§DŌDt la>^h4lWdk^ªhu 3XEOLF 6HFWRU %DQNV DUH UHTXLUHG WR WUDQVIHU DPRXQW remaining unpaid/unclaimed in dividend accounts of lDdt8ĉ4lVlW^]akFhxWo tDt ZaÖdŁY\FSkWhn St Ukdkhn St en ft earlier years on the commencement of the aforesaid Act, ak\k2eDì_kleSTk8ĉ4lVlW^]akFhxWo tDt [kUGxlfSak\k2e and also dividend declared after the commencement of 4U°ak\k2eEkSt]4¤ Så_SD_2 ¤ the said Act, to “Unpaid Dividend Account”. 4U°ak\k2eEkSt]4¤ Så_S_kleC_42 S_RDìSk_mEg2 tgkS The amount transferred to the said “Unpaid Dividend Accounts” and remaining unclaimed/unpaid for a period dfDì4dlV]ª 4UkdkD¤ p S4U°_kleDxD2 YWm4lVlW^] RIVHYHQ\HDUVIURPWKHGDWHRIWUDQVIHULVUHTXLUHGWR DìVk_k gm D2 YWm4lVlW^]DìVk_k Dt 4SF2 ªS be transferred to the Investors Education and Protection ÖTklYSlWdteDle±kC_g2_±RlWlV 577Ym>Z ]4¤ Så_SlD^k2 Fund (IEPF) established under Section 205 (C) of the Companies Act, 1956 (Section 125 of Companies Act, KkWk4Ytl±ShC_8gDu t YĲkS6gg2[2V]\¤ FSkWDn t la>Dx7Ukdk 2013) and thereafter no claim for payment shall lie in [§DDx^klWlVDxÿÖSSWhélD^kKk>Fk[n §DWtld°m^dfª respect thereof to the Bank or the Fund. The Bank has SDGxlfSlD>F>4U°ak\k2eDxYhathm577Ym>ZDx4Så_S2 already transferred unpaid dividend declared up to FY 2010-11 to IEPF. For the details of unpaid dividend from D_lU^khld°m^dfu gª t5FtDt 4U°ak\k2eDt 4S_RD2 t FY 2011-12 onwards, the details about future due dates la>\ldÕ^DìlWlUĶSk_mEŌDxWmIª lU^kF^kht u for transfer are given below: ø ld°m^dfª ak\ke2 577Ym>ZDx4Så_SD_W2 DìlWlUt ĶSk_mEª Sr. Financial Dividend Due Dates for Transfer to IEPF/Last Date by g2 4Så_]2 5_Nm>^k[DDxUkdkÿÖS§ SD_Wn Dì4t lS]2 No Year – Interim which the claim should reach RTA or the Bank 4lS]2 Sk_mE / Final Bank of Baroda erstwhile Vijaya erstwhile [D@§ Ydo dSêldK^kª Ydo dSêUª Wk[t D§ Bank Dena bank [yUk [D§ 1 2011-2012 Final 2nd August, 2019 3rd September, 2019 5th August, 2019 4lS]2 4FÖS lgS[_2 4FÖS 2 2012-2013 Final 29th July, 2020 2nd September, 2020 1st September, 4lS]2 Kak7n lgS[_2 lgS[_2 2020 4Så_] Z_d_m 4ÿau ]kIª 3 2013-2014 Interim 14th February, 2021 5th April, 2021 17th March, 2021 2 th st 4lS]2 Kak7n lgS[_2 lgS[_2 4 2013-2014 Final 25th July, 2021 20 September, 2021 1 September, 2021 4lS]2 Kak7n 4FÖS 4FÖS th st DnJWhé akFWhéo DnJWhé DnJWhé 5 2014-2015 Final 29th July, 2022 27 August, 2022 31 August, 2022 4lS] 4FÖS 4FÖS DJWhé 6 2015-2016 NIL Not Applicable NIL NIL 2 n 7 2016-2017 Final 6th August, 2024 29th August, 2024 NIL DnJWhé akFWhéo lgS[_2 DnJWhé 8 2017-2018 NIL Not Applicable 4th September, 2025 NIL lKWe^_Vk_DŌWt tlYJatdfŎ4TkªSld°m^dfz gª t4YWt The Shareholders who have not en-cashed their dividend ak\k2eYýŌDkWDUmD_RWD_k^khx4Tdkak\k2eYý8ÆhÿkĮ¤ warrants for the previous years, i.e. from FY 2011-12 Whò>hŌ8Æhg¤ lISlD^kKkSkho lDdu t[§DDt _lKÖůk_>d24S_R2 RQZDUGVDUHDGYLVHGWRDSSURDFKWKH%DQN¶V5HJLVWUDU DQG6KDUH7UDQVIHU$JHQWRUDW%DQN¶V,QYHVWRUV¶6HUYLFHV >K¤N4Tdk[§DDt lWUeDgt tdk>ld\kF]2 [7g2n tlWÌWlalESYStY_ Department at Mumbai on the following address : g2YDª :D_¤

263 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

DkdêlZWNtDÿkla lWdeDgt dk>t ld\kF2 Karvy Fintech Pvt. Ltd. Investors’ Services ^lWN[o D@[yUk § [D@Z[yUkdk§ Sa[yUk2 (Unit :- Bank of Baroda) Department Dkdêgat lW^]Nvd_[mÈavNWt >d2 2 DkYō_tNgN_¤ Karvy Selenium Tower Bank of Baroda, FlI[kdam Zk^Wle^a¤ lPlÖů³N gm Km ÊavD [kþk2 Dnakª %3ORW1R 7th Floor, Baroda WkWkø]Fkgn å_lat F]YÐam2 DvÌÈa³g[kt þk Y2 do ª Gachibowli, Financial Corporate Centre, hU_k[kUu ][72n District, Nanakramguda, C-26, G-Block, Bandra ZxWW>d2 7]aȺȿɇȶɄɅɀɃɄȶɃɇȺȴȶɄ#t Serilingampally Mandal, Kurla Complex, Bandra NxaĀì3 ȳȲȿȼɀȷȳȲɃɀȵȲȴɀȾ Hyderabad – 500 032 (E) 7]a3ȶȺȿɈȲɃȵɃȺɄ#ȼȲɃɇɊȴɀȾt Phone No. 040 6716 2222, Mumbai - 400 051. gUÖ^Ōgt4Wn_xV: Toll Free : 1800 345 4001 E-mail - investorservices@ bankofbaroda.com Dp Y^k WxN D_¤lDg2l±Į dklfDª å_YxNª Dì ÿlS^k2 lKW E- mail :[email protected], e^_Vk_DŌt Wt4YWm7]at 57Pm PmYm[§D Dt gkTY2KmDp S Whé 15. Request to Members: D_k7 h8Æhu ]¤ So ªłY]¤ \k_Sm^ PkD Ĭk_k C_ lKW e^_Vk_DŌt Wt Please note that copies of the Abridged Annual Report- 2018-19 in physical form have been dispatched 4YWm7]a57Pmgt 2[2lVSlPYxKmN_m5_Nm>[§DDt gkTY2KmDp S separately by permitted mode to those Shareholders D_dk_Emh8Æh§ 7]¤ aĬk_kYt Ro dklfª Då_YxNª ªDìgvÉN who have not registered their email IDs with the DP/Bank DkYmDt łY]¤ \tKUmF7h§dklfDå_YxNª ª[§DDìdt[gk6N4TkªS and alongwith Full Annual Report 2018-19 in soft copy ɈɈɈȳȲȿȼɀȷȳȲɃɀȵȲȴɀȾY_\m8YaÊVhdklfu Dgk]kÆ^[ª uOD]¤ by emails to those Shareholders who have registered dklfDå_YxNª ªDìÿlS^k2ldSå_SWhéDìKk>Fm4S3gUÖ^Ōg2 t4W_xVn their email ids with the respective Depository/ RTA/Bank. 7KH$QQXDO5HSRUWLVDOVRKRVWHGRQWKH%DQN¶VZHEVLWH hlDdu t[uOD]4YWmÿlSgkTa¤ tD_5>2 i.e. “www.bankofbaroda.com” The Annual Report will ?gte^_Vk_DKxDìdklft ªDå_YxNªDt YRo gª 2ÖD_RÿkĮD_Wk not be distributed at the Annual General Meeting and IkhSth8Æh§ 4YWk4W¤ _xVh]k_n t5_Nm>4TkªSDkdêDz 2 È^N_eo ^_ÿkt KHQFHPHPEHUVDUHUHTXHVWHGWREULQJWKHLUFRS\DWWKH la^k[§DDt lWdteDgtdk>ld\kFDxl[ÆU1 ø]kn 2D]8lÐalES¤ meeting. YStY_\KWkhxFkt Shareholders desirous of getting full version of physical $QQXDO 5HSRUW PD\ VHQG WKHLU UHTXHVW WR RXU ?gte^_Vk_DKxdt ¤dklfDgk]kÆ^[ª uOD]dklf¤ Då_YxNª ª RTA i.e. Karvy Fintech Pvt Ltd or Investor Services Dept. gtg2[2lVSÿĳYJWkIkhSo th8Wg§ t4W_xVhn lDldlVdShÖSk±å_Su of Bank at address mentioned at point no. 14. PmYm57PmúkhD57PmZxla^xW2[_Dt gkT ÿĳlK²kgk[§D 6KDUHKROGHUV GHVLURXV RI DVNLQJ TXHVWLRQV TXHULHV Dt Ykg\KgDSt th[§ §DDt Ykg\Kt tKkWtdkat^tÿĳlK²kgkdé pertaining to Annual Report 2018-19 in the 23rd AGM PD\VHQGWKHLUTXHVWLRQVTXHULHVLQZULWLQJGXO\VLJQHG dklfDgk]kÆ^[ª uODDìlWVkªå_SSk_mEgtlUWYdo ª4TkªSKWo (with DP ID / Client ID / Folio No.) so that the same be SD[§DDxÿkĮhxKkWmIklh> received to the Bank, seven days before 23rd AGM i.e. on th dt[DkÖNDìÓ^dÖTk or before 19 June 2019. 16. Arrangement of webcast gt[m >aBPm5_ ldlW^]WDt ldlW^]Dt 4WYkaWDn t The Bank has in compliance with Regulation 44 of ø]][¤ §DĬk_klUWk2DKWDxgo [h[Kn tgt4YWt 6(%, /LVWLQJ 2EOLJDWLRQ 'LVFORVXUH 5HTXLUHPHQWV e^_Vk_DŌĬk_kh]k_mdklft Dgk]kÆ^[ª uODDìDk^ªdkhmdt[DklÖN2F Regulations, 2015 made arrangements for Web-Casting Dt ]kÅ^]gtUEWt tDìÓ^dÖTkDìF7hu i{j¦q uj¦« facility to our shareholders for viewing the proceeding of our Annual General Meeting on 27th June, 2019 from f}yØ|ÎÛ Îj¦ØÎàKWWSVHYRWLQJNDUY\FRP j¦j¦ 10.00 a.m. onwards. Shareholders who cannot attend °fqj¦e{j¦ãj¦ØÎà the Meeting can avail this facility by browsing the link >DS_Zkak6ddt[DklÖN2Fgtg2[lÆVSlWUe6gÿDk_h¥ § https://evoting.karvy.com. ǵ 7 dxlN2F D_WthSt n ȹɅɅɁȶɇɀɅȺȿȸȼȲɃɇɊȴɀȾ Dt 7dxlN2F Instructions for One-way Live Webcasting are as under: ]vPz^aY_4YWo t^K_57PmdYkgdPo ªDkgZaSkYdo ªDÿ^xF • Upon successful login at https://evoting.karvy.com D_Sth>avlFWD_WtY_5YDt ÖøìWY_KtW_a]mlNFak6d to e-Voting Module using User ID and Password for ò 2 e-voting , the option of ‘General Meeting Live video ldlP^xÖůml]FDkldDÐYlUEk7U2 Fkt 6WUHDPLQJ¶ZLOODSSHDURQWKHVFUHHQ ǵ 6gla2DY_l³aDD_WtY_e^_Vk_DĬk_klKWDt 2 YlW^ŌDt e^_t • Click on the link will display the list of all those la>F>hdlKWD§ t la>ak6dÖůml]FD2 t ldDÐY8YaÊV companies in which the shareholder is holding D_k^tF>h8Wg\mD§ t Wk]ÿUleShxKk>ª F2 t shares and for which option is provided for Live Streaming. ǵ e^_Vk_DDx[t §D@Z[yUkDkldDÐYIWWkhxFkC_6gDn t 6KDUHKROGHU LV UHTXLUHG WR VHOHFW %DQN RI %DURGD [kUÖøìWY_ak6dÖůml]FÿUle2 ShxFkª thereafter Live Streaming will display on the screen.

264 ›¸¸½¢’¬¸ Notice ldetfÅ^kWDfªRhtSn4Wn_xV SPECIAL ATTENTION REQUESTED: \k_Sg_Dk_Ĭk_k52_\DìF7hå_SYhaDxgZa[WkWthtSn8Wg\m In order to support the green initiatives by Government of et^_Vk_DŌlKÆhŌWtg[lVSlPYxKmN_m5_Nm>[§DDt gkT4YWk India, Shareholders who have not registered their email 2 2 IDs with their respective Depositories/RTA/Bank, are 7]ta57PmY2KmDp SWhéD_dk^khugt4Wn_xVhulD7]taĬk_k requested to do so with their respective Depositories or dklfªDå_YxNª>d24Æ^YýÿkĮD_WthtSn6gWxlNg]¤8lÐalESYu_k by sending emails/request in writing to the RTA/Bank at Dt 42SFªSlU>F>YSt7]ta57PmY_7]ta\tKD_lalESłY]¤ the address/email ID stated at para no. 14 in this Notice in order to receive Annual Report and other communications 4Wn_xVD_g[2 2lVSlPYxKmN_m]¤4YWk7]ta57PmY2KmDp SD_dk>2 over mail.

265 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ó^k´^kÂ]Dldd_R EXPLANATORY STATEMENT ]Ug´^k2 Y2oKm5^xKW Item Number 2 – Capital Plan 2019-20 [xPªDt Ĭk_kla>F>lWR^la>KkgDWª tdkatlWR^Dª t 4Wgk_Ó^dgk^n In order to meet the Minimum Capital and Leverage Ratio requirements under the BASEL- III guidelines for expansion 5lÖS^Ō]ldÖSk_D_W¤ tDt la>[tgaȠȠȠDt lUeklWUeŌD¥ t 4SF2 ªSÆ^WS]o of business assets, as decided / may be decided by the Y1Km>do 2amd_tK4WYkSDì5dÔ^DSkDìYn lSo ªD_WtDt 8ĥÔ^gt t[§D\k_Sm^ Board, the Bank proposes to raise common equity by way of 4XDOL¿HG,QVWLWXWLRQV3ODFHPHQW 4,3 )ROORZRQ3XEOLF ÿlS\lS>do 2ldlW]^[xPª Y2KmlWFo ª]>d2ÿDNW5dÔ^DSk> ldlW^]W2 Offer (FPO) / Rights Issues / ADR - GDR / Private Placement C_4īSWg2exVWŌSTk6gg2[2V]g¤ t[m\kå_[§Dt 4ÆâkFo RI(TXLW\&RPSXOVRULO\&RQYHUWLEOH'HEHQWXUHVRUDQ\RWKHU ldlW^]ŌlUeklWUeŌ¥ Dt 4Wgk_n 4hSkª ÿkĮ g2ÖTkFS ÖTkWW ³^57Ym o mode or combinations of these, in accordance with Securities and Exchange Board of India (Issue of Capital and Disclosure Zvax@WYlÊaDlWFª] >ZYmB 4lVDk_lWFª]>Pm5_KmPm5_ Requirements) Regulations 2018 and as amended up to date 6l³dNmDklWKmÈatg]N4lWdk^¤ ªYå_dSªWm^lP[¤I_KugtldldVÿRkla^Ō and other applicable Regulations / Guidelines of SEBI/RBI in this regard. In the event of such issuance of securities is C_4Æ^lDgmÿRkam^k6WDt l]®RDt Kå_>Z2 PKNkWn tDkÿÖSkdD_Sk undertaken by way of QIP, the same will be in accordance h³û 57YmDo t ]kÅ^]gtÿlS\lS^ko 2Kk_mD_WtDt ?gt]k]at\k_Sm^ÿlS\lSo with Chapter VI of Securities and Exchange Board of India >d2ldlW]^[xPª Y2KmlWFo ª]>d2ÿDNW5dÔ^DSk> ldlW^]WD2 t (Issue of Capital and Disclosure Requirements) Regulations 2018. 4Å^k^ȭȠDt 4WłYhxWn tIklh> The present resolution is proposed in order to enable the dSª]kWg2DÐY[§DDt lWUeD]t PaDx8Y^2 ĉg]^ÿlø^kÿml]^]C_n Board of Directors of the Bank to issue equity shares at an 4ÆêSŎY_6l³dNme^_Kk_mD_Wt thSt g±][WkWn tDt la>ÿÖSkldShu appropriate time, mode, premium and other terms. ldefgt 2DÐYDt 4Wgk_]n 6l³dNme¤ ^_ŌDt t ÿÖSkldSlWFª]Wg\makFDkWo WŌo The proposed issuance of Equity Shares in terms of the Special Resolution will be in conformity with the provisions of Dt ÿkdVkWŌDt 4WłYhŌFn t5YDt lWUeDFR6ggt IWk]o 8lÐalESlde¤ ft all applicable laws. Your Directors recommend, the Special g2DÐYŌDìlgZkå_eD_Sth§ Resolutions as set out in the Notice. lDgm\mlWUeD[t §DDt ÿ]Eÿ[n 2VDì^Ó^lĉC_8WDt å_ÔStUk_ŌDx[§D None of the Directors, Key Managerial Persons of the Bank and their relatives may be deemed to be interested or ]8WDìe¤ ^_Vkå_SkDìgm]k^lUDx7hxDxJxD_8Y^t ªĉgn 2DÐYhSt n concerned in the aforementioned Resolution(s), except to the lhS[ĦWhég]LkKk>Fk extent of their shareholding, if any, in the Bank. ]Ug´^k2 [§DDt D]ªIkå_^Ō>d2YoRªDklaDlWUteDŌDxet^_ Item Number 3 - Issue of Shares to Employees and Whole Time Directors of the Bank Kk_mD_Wk Explanatory Statement and Disclosure as required to gt[m et^_5Vkå_SD]ªIk_mak\ ldlW^]WDt ldlW^]W be made in terms Regulation 6(2) of SEBI (Share Based Dt 4VmW^Tk4Ytl±SÓ^k´^kÂ]Dldd_R>d2ÿDNmD_R (PSOR\HH%HQH¿WV 5HJXODWLRQV lUWk2D e¥qÛi Dx 5^xlKS [§D Dì 4gkVk_R gk]kÆ^ At the Extraordinary General Meeting of the Bank held on 21.01.2019 (EGM) the shareholders have passed a special [uOD]e¤ ^_Vk_DŌWt tgt[m e^_5Vkå_SD]t Ik_mak\ ldlW^]Wª 5HVROXWLRQ DXWKRULVLQJ LVVXH RI HTXLW\ VKDUHV Dt 4Wg_R]n [¤ §DDt D]Ikå_^Ō>dª 2YRo DklaDlWUª eDŌDxt of the Bank to Employees and Whole time Directors of the 6l³dNme^_Kk_mD_Wt thSt ÿklVDp SD_Sthò>>Dldefgt DÐYYkå_SlD^k %DQN SXUVXDQW WR 6(%, 6KDUH %DVHG (PSOR\HH %HQH¿WV n 2 Regulations, 2014. 5YDxldlUShmhlD4ÿu uagtldK^k[§DC_UWk[t §DDk[§D As you are aware Dena Bank and Vijaya Bank have been @[yUkDt gkTg]k]aWhxF^kht lKgDu t ZaÖdłYD]Ikå_^ŌDìª amalgamated with the Bank effective 1st April 2019 resulting g2´^k]8Ða¤ tEWm^dlĦhp ò7hu in substantial increase in the number of employees. To provide an opportunity to the employees of erstwhile Dena Ydo ªdSêldK^k[§DC_Ydo ªdSêUWk[t §DDt D]Ikå_^ŌDx4dg_ÿUkWD_Wª t Bank and erstwhile Vijaya Bank, the Board of Directors have hSt lWUn eD]ÁPaWt tD]Ikå_^ŌDxKk_mlD>KkWª tdkate^_ŌDìgt 2´^kDx decided to increase the number of shares to be issued to gt[ kD_D_WthSt lWRn ^la^khª u Î|l¥ Employees from 10,00,00,000 to 15,00,00,000. This issue àj¦j¦j¦vÖj¦Û} qÛq|j¦Ûl°Ûj¦ will be within overall limit of capital plan 2019-20 of Rs. 11,900 crore of the Bank. d|zÎl As indicated in the explanatory statement of the EGM, with a 4gkVk_Rgk]kÆ^[uODDt Ó^k´^kÂ]Dldd_R]^Tk8Ða¤ tlES[§DDl]^Ōª view to enhance sense of belongingness and to motivate the ]4YW¤ tYWDì\kdWkDx[ kdkUWt tSTkD]Ikå_^ŌDxÿxÂgklhSD_Wª thSt n %DQN¶V(PSOR\HHVWKH%DQNSURSRVHVWRLVVXHQHZHTXLW\

266 ›¸¸½¢’¬¸ Notice

[§Dÿ[2VlWUeD>dt 2]´^Dk^n ªYkaD4lVDk_mSTkDk^ªYkaDlWUeDFRt shares to its permanent Employees including the Managing 'LUHFWRU &KLHI ([HFXWLYH 2I¿FHU DQG ([HFXWLYH 'LUHFWRUV g]Sg\mÖTk^m YkýD]t Ikå_^Ō DxW^ª t6l³dNme^_Kk_mlD>KkWt tDk of the Bank (Eligible Employees). The proposed issue will ÿÖSkd D_Sk hu ÿÖSkldS lWFª] [§D Dì UmGDklaDª g2gkVWŌ Dì [ Sm also measure up to meet the growing demands for long term ]k2FDxY_kD_o tFkSTk[tgaȠȠȠDì5dÔ^DSkBD2 t 4WłY[n §DDìY2Kmo UHVRXUFHVDQGVKRUHWKH%DQN¶VFDSLWDODGHTXDF\LQOLQHZLWK WKH%$6(/,,,UHTXLUHPHQWV Y^kªĮSk4WYkS gm>5_ Dx]K[SmÿUkWD_tFk n o ,QFRPSOLDQFHZLWK6(%, 6KDUH%DVHG(PSOR\HH%HQH¿WV gt[m e^_t 5Vkå_S D]Ik_mª ak\ ldlW^]W gt[m ldlW^] Dt Regulations, 2014 (SBEB Regulations), the Bank has 4WYkaWDn t ø]][¤ §DWt4YWtD]Ikå_^ŌDª t la>[§D@[yUkD]Ik_mª formulated a Scheme namely Bank of Baroda Employees Share Purchase Scheme (“BOB-ESPS”). The Scheme will be e^_E_mU^xKWk [mB[m7>gYm>g St u^k_lD^kh^h^xKWkakFu o administered by the Compensation Committee of the Board DkWWŌDk4Wo YkaWD_Sn thò>lWUeD]t PaDì±lSY2 lSo ªgl]lSĬk_keklgS and shall be subject to compliance with the applicable laws. DìKk>Fm 7KH %DQN KDV GHFLGHG WR UDLVH (TXLW\ 6KDUH &DSLWDO XSWR 15,00,00,000 )LIWHHQ&URUH HTXLW\VKDUHVZLWKDIDFHYDOXH [§DWt\k_Sg_Dk_\k_Sm^å_dª[§Dgt[m4Æ^lW^k]D>K¤lg^Ō5lUDt of Rs.2/- each, at an appropriate premium, through Bank of [kÅ^Dk_mldlW^k]D4W]xUWŌDn t 4VmW>D^k4lVD4eŌ]2 ŁD¤ t Baroda Employee Share Purchase Scheme (BOB-ESPS) 4lDS]2 Ð^STk8lISÿml]^]Y_[o §D@[yUkD]Ik_meª ^_E_mUt in one or more tranches subject to mandatory / regulatory approvals from the GoI / RBI / SEBI / Other regulatory ^xKWk [mB[m7>gYm>g Dt ]kÅ^]gt Y2þhD_x agencies etc., in such a way that the Government of India SDDt 6l³dNme^_Yt 2Km6gÿDk_Ko NkWn thSt lWRn ^la^khª lKggu tlD\k_S holding does not fall below 52.00%. g_Dk_Dìe^_Vkå_Skgt tD]Whx The object of the issue, apart from raising of long term resources is: UmGDklaDgª 2gkVWKNkWn tDt 4akdk6glWFª]Dk8ĥÔ^6gÿDk_ht u • To enable the Bank to attract, retain and reward ǵ [§DĬk_k4YWtD]Ikå_^ŌĬk_klU>Kk_hª ^xFUkWDt t ZaÖdłY8Æh¤ Employees for our Bank by sharing the value created 5DlfSD_Wª t4YWtgkT[Wk>_EWtSTkY_ÖDn p SD_WtDt la>6g by them and to motivate them to contribute to the growth DQGSUR¿WDELOLW\RIWKH&RPSDQ\ ^xKWkDxak^kKk_hkhSklDDu 2 YWmDìdlĦC_ak\ÿUSk]p ^xFUkW¤ • To motivate the Employees of the Bank with incentives hSt 8Æhn ÿ¤ tå_SlD^kKkgDt and reward opportunities; ǵ [§DDl]^ŌDxÿxÂgkhW>dª 2Y_ÖDk_Dn t 4dg_ŌDt Kå_>ÿtå_SD_Wk • To achieve sustained growth of the Bank and the ǵ [§DDklW_2S_ldDkgD_WkC_D]Ikå_^ŌDª t lhSŌDx[§DDt UmGDklaDª creation of shareholder value by aligning the interests of the Employees with the long-term interests of the Bank; lhSŌDt gkTggn 2FS[WkSthò>e^_Vkå_Sk]t Ð^ŌDkgo KWD_Wkp and ǵ D]Ikå_^Ō]ª [¤ §DDt ÿlS4YWtYW>d2ÿlS\klFSkDì\kdWk8ÂYÆWD_Wk • To create a sense of ownership and participation ǵ [§D Dì Y2Kmo Y^kªĮSk Dx ]K[Smo ÿUkW D_WtSTk[§D Dì gk]kÆ^ amongst the Employees. Ó^dgkl^D5dÔ^DSkBDxlWlV8YaÊVD_kW2 tDt 8ĥÔ^DxYt _kD_Wo t 7RUDLVHHTXLW\FDSLWDOWRXWLOL]HIRUWKHSXUSRVHWRVKRUH XSWKHFDSLWDODGHTXDF\DQGWRIXQGWKHJHQHUDOEXVLQHVV hSt 6l³dNmYn 2KmKo NkWkn needs of the Bank. Kk_mD_WthSt ÿÖSkldSW^n t6l³dNme^_ŌDx[t §DĬk_k^lUDx7ak\k2eKk_m 7KH QHZ HTXLW\ VKDUHV SURSRVHG WR EH LVVXHG XQGHU WKH lD^kKkSkh8gDu t \FSkWglhSg\mŀlĶgn t[§DDt ]yKUk6l³dNmeo ^_Ōt Scheme shall rank pari passu in all respects with the existing HTXLW\VKDUHVRIWKH%DQNLQFOXGLQJSD\PHQWRIGLYLGHQGLI Dt g]WłY]kWkKk>Fkn any, declared by the Bank. gt[mDt gIm^W[kÅ^Sk>o >d2 2ÿDNmD_R5dÔ^DSk> ldlW^]W2 In compliance with Regulation 41(4) of the SEBI (Listing Dt ldlW^]W >d gt[m >aBPm5_ STk>g[m7[mldlW^]WDt 2EOLJDWLRQV 'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQV 2 [SEBI (LODR)] and Regulation 6 of SBEB Regulations, the ldlW^]Dt 4WYkaWDn t ø]][¤ §DYkýD]Ikå_^ŌDxW>6l³dNmeª ^_t Bank is proposing the Special Resolution for issuance and Kk_m>d25[2lNSlD>KkWthSt lden fgt 2DÐYDkÿÖSkdD_Skhu DOORWPHQWRIQHZHTXLW\VKDUHVWR(OLJLEOH(PSOR\HHV Pursuant to SEBI Circular No. CIR/CFD/Policy Cell/2/2015 g[mYå_Yýø]kt D2 gm575_gm>ZPmYvlagm gat lUWkD2 KWo dated 16th June 2015, additional disclosures as enumerated Dt 4Wg_R]n 6gg¤ gt [2 lVS4lSå_ĉÿDNmD_R lPg³axK_ 6gÿDk_h2 u therein are as under: > ^xKWkDkgl±Į2 ldd_R3 a. BRIEF DESCRIPTION OF THE SCHEME: [§DYkýD]Ikå_^ŌDx[mB[m7>gYm>g Dª t akFlW^]ŌDo t 4WłYn The Bank proposes to offer upto 15,00,00,000 (Fifteen &URUH QHZHTXLW\VKDUHVRIIDFHYDOXHRI5VHDFK [§DDt ÿÂ^tDŁDt 4lDS]2 Ð^Y_ Yo 2þhD_x of the Bank to all the Eligible Employees under BOB-

267 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

e^_@Z_D_St tg]âkFlW^]ŌDkWo WŌldlW^]Ō>do 2lUeklWUeŌ¥ ESPS subject to applicable laws, Rules, Regulations and Guidelines, to be decided at the time of making offer Dt 4VmW6gÿDk_Kk_mD_WtDkÿÖSkdD_SkhlKggu tlD\k_S in such a way that the holding of Government of India g_Dk_DklhÖgkgtD]Whx does not reduce below 52.00%. [m ÿUkWlD>KkWtdkatet^_ŌDìg´^k32 b. TOTAL NUMBER OF SHARES TO BE GRANTED: Up to 15,00,00,000 )LIWHHQ &URUH QHZ HTXLW\ VKDUHV 6g^xKWkDt 4SF2 ªSYkýD]Ikå_^ŌDxDª n a Y2þh in aggregate are proposed to be offered to the Eligible D_x W>6l³dlNe^_Kk_mD_Wt tDkÿÖSkdhu Employees under the Scheme. gm [mB[m7>gYm>g ]¤ ekl]a hxWt >d ak\kTê [WWt htS Yký c. IDENTIFICATION OF CLASSES OF EMPLOYEES 2 n ENTITLED TO PARTICIPATE AND BE BENEFICIARIES D]ªIkå_^ŌDt g]ohŌDklWVkª_R IN THE BOB ESPS: [§DDt YRo DklaDlWUª eDŌglhS[t §DDt g\mÖTk^mD]Ik_mª All permanent Employees of the Bank including the Whole Time Directors of the Bank. Pm dtlÖN2FDì5dÔ^DSkC_8gDì4dlV d. REQUIREMENTS OF VESTING AND PERIOD OF akFWhéo VESTING: 7 gt[m >g[m7[m ldlW^]WDt ldlW^]W C_ Dt Not Applicable. e. MAXIMUM PERIOD [SUBJECT TO REGULATION 18 4VmW Kx\makFohx 4lVDS]4dlVlKgDt 42SFªSldDÐY (1) AND 24 (1) OF THE SEBI (SBEB) REGULATIONS, >g>5_ak\lWlhShxFk AS THE CASE MAY BE] WITHIN WHICH THE OPTIONS/SARs/BENEFIT SHALL BE VESTED: akFWhéo Not Applicable. >Z >³g_gk6K]oÐ^>g>5_]oÐ^ø^]oÐ^^k]oÐ^lWVkª_Rgýo f. EXERCISE PRICE, SAR PRICE, PURCHASE PRICE @Z_ ]Ð^øô ]Ðô Dk lWVkª_R @Z_ Dt g]^ lWUeDt ]Pa2 OR PRICING FORMULA: lWUeDŌDìgl]lSĬk_klD^kKk>Fk6g^xKWkDt t 4SF2 ªS[§DDt Yký The Offer Price / Purchase Price will be determined by the Board / Committee of Directors at the time of the D]Ikå_^ŌDx5[ª 2lNSlD>KkWtdkate^_ŌDk]t Ð^[xPo ªgl]lS^Ō offer. The price of the Shares to be allotted under the Ĭk_k@Z_E_mU]Ð^DklWVko ª_RlD>KkWtDìSk_mEgtYdo ªd°Sk_mEª Scheme to the Eligible Employees of the Bank shall be at a discount of 25% on the average of the weekly Y_FSUxgĮkhDt Uy_kW>W>g7Y_DxNlD>F>6l³dNme^_ŌDt t high and low of the volume weighted average prices of dvÐ^]Do t gkĮklhD8Sk_I kdDt CgS5Vk_Y_lWVkªå_ShxFk WKHHTXLW\VKDUHVTXRWHGRQ16(GXULQJWKHWZRZHHNV preceding the date on which the Board / Committee / lKg]DìJ¤ oNhxFm 'HOHJDWHG$XWKRULW\¿[HV2IIHU3XUFKDVH3ULFH Km >³g_gk6KDì4dlV>d2>³g_gk6KDìÿlø^k g. EXERCISE PERIOD AND PROCESS OF EXERCISE: [xPgl]lS^ŌDª t lWR^Dª t 4Wgk_lKg4dlVDt Uy_kWlWF]Eª ak_hSkhu The period during which the issue remains open as per n n decision of the Board / Committee shall be the Exercise dh4dlV>³g_gk6K4dlVhxFm>³g_gk6KDìÿlø^k]4Æ^[kSŌD¤ t Period. The process of exercise would, inter-alia, gkTgkTYkýD]Ikå_^ŌDxlD>F>@Z_5dª UW>dt 4l\UkWDì_kle include offer made to the Eligible Employees, receipt 2 of application and subscription amount and allotment of DìÿklĮSTk^xKWkDt 4Wg_R]n e¤ ^_ŌDt t 5[NWDkg]kd2 ehxFkt shares pursuant to the Scheme. >I ÿÖSkldS7>gYm>gDt 42SFªSD]ªIkå_^ŌDìYkýSkDt lWVkª_R h. THE APPRAISAL PROCESS FOR DETERMINING THE ELIGIBILITY OF EMPLOYEES FOR THE PROPOSED htSn]oÐ^k2DWÿlø^k ESPS: @Z_ Kk_m D_Wt Dì Sk_mE Y_ Yký D]Ik_mª akFo ldlW^k]D Eligible Employees as on the date of offering will be entitled to participate subject to the applicable regulatory 5dÔ^DSkB>d2 2lUeklWUeŌD¥ t 4VmW6g]\kFa¤ tWthSt YkýhŌFn t UHTXLUHPHQWVDQGJXLGHOLQHV 57 ÿlSD]ªIk_m>d2g]úłY]¤Kk_mlD>KkWtdkat4lVDS] i. MAXIMUM NUMBER OF OPTIONS, SARs, SHARES, ldDÐYet^_>g>5_et^gªKugk\m]k]akhx3 AS THE CASE MAY BE, TO BE ISSUED PER EMPLOYEE AND IN AGGREGATE : 6g^xKWkDt 4SF2 ªSÿlSD]Ik_mKk_mD_Wª thSt ÿÖSkldSW^n t6l³dNm The Bank proposes to issue maximum of 6,500 (Six e^_ŌDì4lVDS]gt 2´^k JhhKk_Yk2Igy hxFmSTklYÿlS 7KRXVDQG )LYH +XQGUHG HTXLW\ VKDUHV SHU (PSOR\HH VXEMHFWKRZHYHUWKDWWKHHTXLW\VKDUHVSURSRVHGWREH D]Ik_mKk_mlD>KkWª tdkate^_[t §DDt lWFª]YĲkSÿU°Y2KmDo t issued per employee shall not exceed 1.00% of the post gt4lVDWhéhxWkIklh> issue paid-up capital of the Bank.

268 ›¸¸½¢’¬¸ Notice

Kt ^xKWk Dt 42SFªS D]ªIkå_^Ō Dx 8YaÊV D_k> KkWt dkat j. MAXIMUM QUANTUM OF BENEFITS TO BE PROVIDED PER EMPLOYEE UNDER THE SCHEME: 4lVDS]ak\ 2WKHUWKDQHTXLW\VKDUHVLVVXHGWRWKH(OLJLEOH(PSOR\HHV 8Y_xĉYu_k Ⱥ ]Uek¤ ª>4Wgk_YkýD]n Ikå_^ŌDxKk_m6l³dNmeª ^_Dt t under the Scheme as indicated in para (i) above, no other 4akdkD]ªIkå_^ŌDxDx7\m4Æ^ak\lU^kKkWkÿÖSkldSWhéhu EHQH¿WLVSURSRVHGWREHSURYLGHGWRWKH(PSOR\HHV k. WHETHER THE SCHEME (S) IS TO BE IMPLEMENTED Dt ³^k^h^xKWk > gmVtSy_Y_[§DĬk_klø^klÆdS>d2gIklaS2 AND ADMINISTERED DIRECTLY BY THE BANK OR DìKk>Fm4TdklDgmůÖNĬk_k6gtIak^kKk>Fk THROUGH A TRUST: 6gÿÖSkldS^xKWkDxgmVSy_Y_[t §DĬk_khmgIklaSlD^kKk>Fk The proposed Scheme will be implemented and 2 administered directly by the Bank. >a ³^k6g^xKWk]¤D2 YWmĬk_kKk_mlD>KkWtdkatW>et^_^kůÖN l. WHETHER THE SCHEME (S) INVOLVES NEW ISSUE Ĭk_kgtD¤ P_m>l³dKmeW^kUxWŌekl]ahŌFt3 OF SHARES BY THE COMPANY OR SECONDARY ACQUISITION BY THE TRUST OR BOTH: ÿÖSkldS^xKWkDt 4SF2 ªSYkýD]Ikå_^ŌDxW>6l³dNmeª ^_[t §DĬk_k Under the proposed Scheme, the Bank will issue new gmVKk_mlD>Kk>t F2 t HTXLW\VKDUHVGLUHFWO\WRWKH(OLJLEOH(PSOR\HHV >] D2 YWm Ĭk_k ůÖN Dx 6g ^xKWk Dt Dk^kªÆd^W htSn 8YaÊV m. THE AMOUNT OF LOAN TO BE PROVIDED FOR THE IMPLEMENTATION OF THE SCHEME (S) BY D_k^kKkWtdkak:R8gDì4dlV8Y^xFInDySmDìeS¦ THE COMPANY TO THE TRUST, ITS TENURE, 5lU UTILIZATION, REPAYMENT TERMS, ETC.: 6gÿÖSkldS^xKWkDt 4SF2 ªS[§DDt W>6l³dNme^_YkýD]t Ikå_^Ōª 8QGHU WKH SURSRVHG 6FKHPH WKH QHZ HTXLW\ VKDUHV of the Bank are proposed to be issued directly to the DxgmVKk_mlD>Kk>t F2 tC_4S36gg2[2V]ůÖNDkFOW^kůÖNDx¤ Eligible Employees and as such, the formation of the :R8YaÊVD_kWkakFWhého u Trust or providing loan to the Trust is Not Applicable. >W ^xKWkDt ÿ^xKWkTªůÖNĬk_kSu^k_DìKkgDWtdkamgtD¤ P_m n. MAXIMUM PERCENTAGE OF SECONDARY ACQUISITION (SUBJECT TO LIMITS SPECIFIED >l³dKmeW gt[m ldlW^]W Dt 42SFªS lWVkªå_S gm]k Dt UNDER THE SEBI REGULATIONS) THAT CAN BE 4WnłY Dk4lVDS]ÿlSeS MADE BY THE TRUST FOR THE PURPOSES OF THE SCHEME (S): akFWhéo Not Applicable. B 6g5e^Dk>DÖNtN]¤NlD[§Dgt[m >g[m7[m ldlW^]WDt o. A STATEMENT TO THE EFFECT THAT THE BANK ldlW^]]¤Uekª7F7atEk2DWWmlS^ŌDìYnlĶD_tFk SHALL CONFORM TO THE ACCOUNTING POLICIES SPECIFIED IN REGULATION 15 OF SEBI (SBEB) [§D g]^g]^ Y_ ^TkakFo >g[m7[m ldlW^]Ō Dt ldlW^] ]¤ REGULATIONS: ldlWlUĶaª tEkWmlS^ŌDìYlĶD_n tFk The Bank will conform to the accounting policies VSHFL¿HG LQ 5HJXODWLRQ RI 6%(% 5HJXODWLRQV DV Ym [§DĬk_k4YWtldDÐY4Tdk>g>5_Dt ]oÐ^k2DWhtSnÿ^nĉ applicable from time to time. ldlV p. THE METHOD WHICH THE BANK SHALL USE TO ÿÖSkldS^xKWkDt 4SF2 ªS[§DW>6l³dNme^_Kk_mD_Wt tDkÿÖSkd VALUE ITS OPTIONS OR SARs: D_SkhC_4S36gÿDk_ldDÐYŌDu t ]Ð^kDW4Tdk>g>5_akF Under the proposed Scheme, the Bank proposes to o 2 o LVVXHQHZHTXLW\VKDUHVDQGDVVXFKWKHYDOXDWLRQRI WhéhŌFt Options or SARs is Not Applicable. ³^o lWÌWlalESldd_R ^lUakFohŌ q. THE FOLLOWING STATEMENT, IF APPLICABLE: ^lU[D^Tk§ T]ª Ð^Dk8Y^xFD_eo ^_5Vkå_SD]t Ik_mak\Dª t>³gYlÆgt F2 In case the Bank opts for expensing of share based HPSOR\HHEHQH¿WVXVLQJWKHLQWULQVLFYDOXHWKHGLIIHUHQFH DkldDÐYIWSkhn Sx6gÿDk_FRWkDìF7D]u Ik_mDª 2YÆgt eWakFS>dt 2 between the employee compensation cost so computed ^lU8lIS]Ð^Dk8Y^xFlD^kF^khxSkSxKxD]o Ik_mDª 2YÆgt eWakFSt and the employee compensation cost that shall have been recognized if it had used the fair value, shall be lWVkå_Shª 7hxSm6WDò t[mIDt4S_DxlWU2 eDŌDìå_YxNt ]ª Uek¤ ^kKk>Fkª GLVFORVHGLQWKH'LUHFWRUV¶UHSRUWDQGWKHLPSDFWRIWKLV C_ÿlSe^_D]k7 7Ym>g C_ak\Dt t4S_Dk\m[2 DĬk_klWU§ eDŌDìt GLIIHUHQFHRQSUR¿WVDQGRQHDUQLQJVSHUVKDUH ³(36´ RI WKH %DQN VKDOO DOVR EH GLVFORVHG LQ WKH 'LUHFWRUV¶ å_YxN]ª 8Ða¤ ElD^kKk>Fkt report. 8Y^ĉ5dÔ^DSkBªn D2 takFhxWo Y_[t DĬk_k6gDk4W§ YkaWlD^kKk>Fkn 7KH %DQN ZLOO FRPSO\ ZLWK WKH DERYH UHTXLUHPHQWV LI applicable.

269 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

5_ avD6W4dlV3 r. LOCK-IN PERIOD: >g[m7[mldlW^]WŌDt 4Wgk_dSn ª]kW7>gYm>gDt 4SF2 ªSÿÖSkldS 7KHQHZHTXLW\VKDUHVSURSRVHGWREHLVVXHGXQGHU%2% ESPS shall be locked-in for a minimum period of One W76l³dNme^_DìavD6W4dlV6gDt t 5d2NWDìSk_mEgtdfª year from the date of allotment as per SBEB Regulations. Dì4dlVDt la>hxFm The Board of Directors recommends the passing of the lWUeD]t PaĬk_k6gÿÖSkldSlde2 fgt 2DÐYDxYkå_SlD>KkWtDì4Wen gk2 proposed Special Resolution. DìKkSmhu The Whole Time Directors and other Key Managerial Persons (KMPs) of the Bank are concerned or interested YRo DklaDlWUª eDFR>dt 2[§DDt 4Æ^ÿ]Eÿ[n 2VDì^ÿklVDk_m6gÆ^WS]o in the aforementioned Resolution as it is intended for their ÿÖSkdgtg_xDk__ESth³^ŌlD^h8WD§ t ak\Dt 6_kUgt tSu^k_lD^kF^khu EHQH¿W2WKHU'LUHFWRUVDUHQRWFRQFHUQHGRULQWHUHVWHGLQWKH 4Æ^lWUeDFRDk6gÿÖSkdgt tDx7g_xDk_WhéhxFk Resolution.

By Order of the Board of Directors lWUeD]t PaD2 t 5Uegt t For BANK OF BARODA Dp St[§D@[yUk

Ym>gK^D Ym>gKK^Dn ]k_ ]k__ P. S. Jayakumar ÿ[2VlWUeD>dt 2]´^Dk^n ªYkaD4lVDk_m 0DQDJLQJ'LUHFWRU &(2 ÖTkW][72n Place : Mumbai lUWk2D]7 Date: 22nd May 2019

270 ›¸¸½¢’¬¸ Notice

yeQkeÀ Dee@]HeÀ yeæ[ewoe øeOeeve keâeÙe&eueÙe - ye[ewoe YeJeve, DeuekeâeHegjer, Je[esoje 390 007

HeÀece& yeer he´e@keÌmeer HeÀece& (Mes³ejOeejkeÀ Üeje Yeje SJeb nmlee#ej efkeÀ³ee peeS)

[erheer DeeF&[er veb hebpeerke=Àle HeÀesefue³ees vebyej ie´enkeÀ DeeF&[er veb (³eefo Mes³ej DeYeeweflekeÀ ªhe ceW ve nes) (³eefo Mes³ej DeYeeweflekeÀ ªhe ceW nes) Mes³ejeW keÀer mebK³ee ceQ/nce efveJeemeer efpeuee jep³e yeQkeÀ Dee@]HeÀ yeæ[ewoe keÀe/kesÀ Mes³ejOeejkeÀ nesves kesÀ veeles SleoÜeje Þeer/Þeerceleer. efveJeemeer efpeuee jep³e keÀes ³ee GvekesÀ ve nesves hej Þeer/Þeerceleer efveJeemeer efpeuee jep³e keÀess iegªJeej, 27 petve, 2019 keÀes megyen 10.00 yepes UmWU^ka8YkÅ^k^WF_FhDp u akeYkNêÈavNDt gk]Wt5KdkIyDPmDt Ykg dPxU_k ceW ³ee FmekeÀer efkeÀmeer mLeefiele leejerKe keÀes yeQkeÀ Dee@]HeÀ yeæ[ewoe kesÀ Mes³ejOeejkeÀeW keÀer nesves Jeeueer Jeee|

271 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019 %DQNRI%DURGD +HDG2IÀFH%DURGD%KDYDQ$ONDSXULVadodara - 390 007. FORM “B” PROXY FORM 7REHÀOOHGLQDQGVLJQHGE\WKH6KDUHKROGHUV Regd. Folio No. DP ID Client ID (If shares are not dematerialized) (If shares are dematerialized) No. of Shares

I / We resident/s of in the district of in the State of being a shareholder / shareholders of the Bank of Baroda, hereby appoint Shri/Smt resident of in the district of in the State of or failing him / her, Shri / Smt resident of in the district of in the State of as my / our proxy to vote for me/us and on my/our behalf at the $QQXDO*HQHUDO0HHWLQJ of the Shareholders of the %DQNRI%DURGD to be held on 7KXUVGD\WK-XQHDWDPat Pandit Deendayal Upadhyay Nagar Gruh, Opp. Kailash Party Plot, Near Ajwa Chowkdi, Ajwa Road, Vadodara - 390 019 and at any adjournment thereof.

Signed this day of 2019 3OHDVHDI¿[ Signature of Proxy Revenue Name Stamp

Address 6LJQDWXUHRIÀUVWQDPHG6ROHVKDUHKROGHU

,QVWUXFWLRQVIRUVLJQLQJDQGORGJLQJWKH3UR[\)RUP 1. No instrument of proxy shall be valid unless, a) in the case of an individual shareholder, it is signed RWKHUDXWKRULW\FHUWLÀHGDVDWUXHFRS\E\D1RWDU\3XEOLF E\KLPKHURUE\KLVKHUDWWRUQH\GXO\DXWKRUL]HGLQ or a Magistrate, unless such a power of attorney or the writing, or other authority is previously deposited and registered with b) in the case of joint holders, it is signed by the the Bank/its Registrar and Share Transfer Agent. If already VKDUHKROGHU ÀUVW QDPHG LQ WKH UHJLVWHU RU KLV KHU registered, the Registration No. and Date be provided. DWWRUQH\GXO\DXWKRUL]HGLQZULWLQJRU 3. No instrument of the proxy shall be valid unless it is in F LQWKHFDVHRIDERG\FRUSRUDWHVLJQHGE\LWVRIÀFHU Form “B” RUDQDWWRUQH\GXO\DXWKRUL]HGLQZULWLQJ 4. An instrument of proxy deposited with the Bank shall be 3URYLGHGWKDWDQLQVWUXPHQWRI3UR[\VKDOOEHVXIÀFLHQWO\ LUUHYRFDEOHDQGÀQDO signed by any shareholder, who is, for any reason, unable 5. In the case of an instrument of proxy granted in favour of to write his/her name, if his/her mark/thumb impression two grantees in the alternative, not more than one Form LVDIÀ[HGWKHUHWRDQGDWWHVWHGE\D-XGJHRU0DJLVWUDWH shall be executed. or Registrar or Sub-Registrar of Assurances or other 6. The granter of an instrument of proxy shall not be entitled *RYHUQPHQW *D]HWWHG 2IÀFHU RU DQ 2IÀFHU RI %DQN RI to vote in person at the Annual General Meeting to which Baroda. such instrument relates. 2. No proxy shall be valid unless it is duly stamped and 1R SHUVRQ VKDOO EH DSSRLQWHG DV GXO\ DXWKRUL]HG LV GHSRVLWHG DW WKH +HDG 2IÀFH RI WKH %DQN DW %DQN UHSUHVHQWDWLYHRUDSUR[\ZKRLVDQRIÀFHURUDQHPSOR\HH of Baroda, KYC-AML Department, 7th Floor, Baroda of Bank of Baroda. Bhavan, R. S. No. 576, R C Dutt Road, Opp. Centre Point, 8. The proxy holder may vote either “FOR” or “AGAINST” the Alkapuri, Vadodara -390007, not less than FOUR DAYS each resolution. EHIRUHWKHGDWHÀ[HGIRUWKH$QQXDO*HQHUDO0HHWLQJLH 9. All alterations in the Proxy Form should be duly on or before 4.00 p.m. on 21st June, 2019 together with authenticated. the Power of Attorney or other authority (if any) under which it is signed or a copy of that Power of Attorney or

272 ¨¸¸¹«¸ÄˆÅ ¹£œ¸¸½’Ä Annual Report 2018-2019

Ï Ù~Ï | j§¬d~Ü *5((1,1,7,$7,9($33($/726+$5(+2/'(56

}t¦j§ ~t¦Ùz 72*(7127,&(6$118$/5(32576 27+(5 d}~o e¦j§|~±~Ùj§ } &20081,&$7,217+528*+(0$,/ v tkÙ¬¬ k} | j§¬d} |Ï j§d}| 6KDUHKROGHUVKROGLQJ6KDUHVLQ'HPDWDFFRXQWVDUH vtkØ««e¥de¥vÛzq¥j¦« UHTXHVWHGWRregister an email ID in their Demat A/cs. ä Ùj§~ k} | j§¬d} |Ï j§ 6KDUHKROGHUVKROGLQJ6KDUHVLQ3K\VLFDOIRUPDUH UHTXHVWHGWR d}|ÛÎØÎØe}j¦|Ûozlãlj¦ãj¦Øyf} VHQGWKHLUFRQVHQWE\ÀOOLQJXSDQGVLJQLQJWKHSHUIRUDWHG ÎØj¦j¦fÎqtÐj¦}|Ûok}Ø}ãqz« portion of this communication to our Registrars at their ¥j¦ÛÜ¦|tj¦}°et address given hereunder : |t¡ àj¦d¢Ü×¦ vÖz M/S Karvy Fintech Private Ltd., j¦Û¥|t¢ Û}t¨¦ (Unit: Bank of Baroda), loÛ ¢ÛÜ¦e| vtÐ§t||¨¦lv Karvy Selenium Tower B, Plot No.-31&32, Gachibowli, Û l}Û vÎz z Financial District, Nanakramguda, Serilingampally Mandal, Ü¦|| Hyderabad - 500 032, e¥¡HLQZDUGULV#NDUY\FRP Phone No. 040 – 6716 2222 E-mail : [email protected]

áj§d£ÝØ§v× {j§ÜÏ Ù~Ï *5((1,1,7,$7,9(2)%$1.2)%$52'$ z| j¦ Date: ¥j¦Û¥Ü¦|tj¦}°et M/S Karvy Fintech Private Ltd., |t¡ àj¦d¢Ü×¦ vÖz (Unit: Bank of Baroda), j¦Û¥|t Û}t¨¦ Karvy Selenium Tower B, Plot No.-31&32, loÛ ¢ÛÜ¦e| vtÐ§t||¨¦lv Gachibowli, Financial District, Nanakramguda, Û l}Û vÎz z Serilingampally Mandal, Hyderabad - 500 032 }°Îz Dear Sir, àÎBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB àj¦d¢Ü×¦ I/ We ______holding ______vÖzj¦}¥tl|Õj¦}¥ ÎØ}Î f}«j¦ij¦ shares of Bank of Baroda in physical form, intend to receive }°j¦}« àj¦d¢Ü×¦ vÖzãÛ zd}||Ûozilie¥ all communication from Bank of Baroda through our email ID de¥vÛj¦{}°}Øj¦|oÎØÎ oÎØÎàÎ} àj¦ given hereunder, as a part of Green Initiative under Corporate j¦BBBBBBBBBBBBBBBBBBãØj¦}«Îà Governance of Bank of Baroda. Ü¦| ¡BBBBBBBBB Folio Number: ______e¥de¥vÛ¡BBBBBBBBBBBBBBBBBBBBBBBBB Email ID: ______àÎedj¦o|zØÎ zØÎàj¦Îe¥j¦{ }°}Ø zj¦ÎÛ{j¦Øy àj¦d¢Ü×¦ vÖz¸Î«ãqli I/ We also undertake that the communication received through zØq«j¦ÛoØi }¥}Ø}z¥lÛ|qilàÎÎãÛo| P\RXUHPDLO,'ZLOOEHWUHDWHGDVSURSHUOHJDODQGVXIÀFLHQW zØÎ zØÎàj¦zj¦ÛØj¦|Ûj¦Ûd|j¦«Îe¥ delivery of documents sent to us by Bank of Baroda. I/ We Î«ÎÛ}«}°}Ø|Î|j¦j¦ z}°}Ø|ÎÛ Î}ØÎØÎ àj¦ further undertake that we would not hold Bank of Baroda, any d¢Ü×¦ vÖzej¦j¦Ûj¦¥oÛqtÐdyej¦j¦¥o«j¦ of its employees, Registrars or its employees, responsible in fÏzÛ |ÎÛ uÎ«l case the communication is not properly received at my/ our email ID due to any technical/ other failures. BBBBBBBBBBBBBBBB ______}°y{j¦j¦ÎØ Signature of First Holder

273 }t Notice

~±äÜÙÙj§d¬j§ $SSHDOWR6KDUHKROGHUVIRU(IÀFLHQW | j§¬d~Ü 3URPSW6HUYLFHV j§~d~}ä Ùj§ j§vÜ tj§ ¬ 3OHDVH'HPDW\RXU3K\VLFDO6KDUHV j§~ä¡e ¨tÑ£}j§Ü|d~}áj§kÙ¬qj§ } 3OHDVH UHJLVWHU \RXU 0DQGDWH IRU (OHFWURQLF j§d~} }vt qt j§ ¬ GLUHFWFUHGLWRI'LYLGHQGDPRXQWLQ\RXU%DQN$F j§~e¦j§|}{~}j§d~}e¦ 3OHDVH UHJLVWHU \RXU (PDLO ,' IRU UHFHLYLQJ FRPPXQLFDWLRQVWKURXJK(PDLO de¦vÜ qt j§ ¬ dä Ùj§Üj§ vÜ t eq} j§ä %HQHÀWVRI'HPDWHULDOL]DWLRQ t¥Ü¦j¦tj¦k|j¦j¦e¥v|ÎÛ 1RWKUHDWRIORVVRI6KDUH&HUWLÀFDWH y| Øj¦dyt¢}j¦ko¥|ÎÛ 2. No Share Transfer Fees or Stamp Duty Expenses }|ÛÎØy| Ø o 3. Easy / hassle free Transfer / Transmission | j¦|ã 4. Nomination possible ã Û{d}j¦ àj¦kØ«q 5. Dividend directly credited to your Bank A/c d ii Ûi de¥}Ûddz|ã 6. ASBA/IPO Application possible e ¨tÑ£}j§ v j§ | ä¡ älÙ} j§ i }vt %HQHÀWV RI 5HJLVWHULQJ 0DQGDWH IRU SD\PHQW RI 'LYLGHQGWKURXJK(OHFWURQLF0RGH ~¡qÜj§Ùj§ }j§ä 1. Direct credit of dividend on Dividend payment date ã ãlØ|j¦ÛØÛkj¦ÎÛã }°ØqÎ| itself 2. No problem of late / non-receipt / revalidation of ã t«zÛd}°}Ø}|¥{Øj¦Ûj¦e¥|ÎÛ Dividend Warrants e¦de¦vÜ~¡qÜj§Ùj§ }j§ä %HQHÀWVRI5HJLVWHULQJ(PDLO,' 1. Be a part of Green Initiative of Government of India ãØj¦j¦ÛÎØ}Îj¦Î |« (GOI) j¦}¥to|i ØØj¦}°}Øj¦|q«iqÛie¥qÛi 2. Immediate receipt of Corporate communication ¥j¦}t¥âÎÛo|eØzj¦ÛØØj¦}°}ØãÛ including Notice of AGM & EGM / Annual Reports / Î Half Yearly communication, etc áj§d£ÝØ§v× {Bank of Baroda ~±|}j§¦¢ vÖzã|dj¦}Ûvz

+HDG2I¿FH Baroda Bhavan, Alkapuri, Vadodara - 390 007

Î¦j§} uj§j§if~zÙ~oÜ¦Ï~±~ÏÙ~~ ATTENDANCE SLIP-CUM-ENTRY PASS-CUM-VOTING PAPER PASS FOR 23RD ANNUAL GENERAL MEETING z| j¦ l¦q| Date Thursday, 27th June, 2019 ¡ Î q Time10.00 a.m. y| ¡ zÛ|zf}{|llÎj¦}tÛ¥}¢tj¦|dqoj¦vÛj¦ Place Pandit Deendayal Upadhyay Nagar Gruh, Opp. Kailash Party Plot, Near }dqvvz Ajwa Chowkdi, Ajwa Road, Vadodara - 390 019. f~zÙ~oÜ¦ ATTENDANCE SLIP }°j¦y|}qj¦qi To be surrendered at the time of entry to the Venue |}td NAME IN BLOCK LETTERS Ü¦vÛ}Ûde¥vÛl°Îj¦de¥vÛ «j¦Û zMember / }°¢§ÛProxy / }°Ø|{AR) FOLIO/DPID/CLIENT ID NO. No. of Shares

f}yØ{j¦}°¢§Û}°Ø|{j¦ÎØSignature of the Shareholder / Proxy/ Representative present X______

áj§d£ÝØ§v× { Bank of Baroda ~±~ ENTRY PASS (}Û uj¦j¦z|d}|}k«To be retained throughout the meeting) ¥j¦| uj¦¡l¦q|¡ Î qANNUAL GENERAL MEETING : THURSDAY, 27TH JUNE, 2019. TIME : 10.00 a.m. |}td NAME IN BLOCK LETTERS Ü¦vÛ}Ûde¥vÛl°Îj¦de¥vÛ «j¦Û zMember / }°¢§ÛProxy / }°Ø|{AR) FOLIO/DPID/CLIENT ID NO. No. of Shares

f}yØ{j¦}°¢§Û}°Ø|{j¦ÎØSignature of the Shareholder / Proxy/ Representative present X______{j¦«}°¢§Û{j¦«}°Ø|{«d|{Îj¦ uj¦Î¢«}°ÎØ}°}j¦yef}yØ}oÛ¥j¦ àj¦j¦}zq¥||ÎØj¦d| }{ØÎØj¦j¦}°ØØj¦« }°j¦d{j¦Ø}|q£oqãÛdj¦rqij¦d{{Û|Îlj¦ÛãÛyØ« uj¦Î¢j¦}°¸}v}Ûj¦tf}yØ}oÛ¥Î}°}qÛ|ÎÛ j¦qil 6KDUHKROGHUVSUR[\KROGHUVDXWKRUL]HGUHSUHVHQWDWLYHDUHUHTXHVWHGWRSURGXFHWKHDERYH$WWHQGDQFH6OLSGXO\VLJQHGLQDFFRUGDQFHZLWKWKHLUVSHFLPHQ VLJQDWXUHVUHJLVWHUHGZLWKWKH%DQNDORQJZLWKWKHHQWU\SDVVIRUDGPLVVLRQWRWKHYHQXH7KHDGPLVVLRQPD\KRZHYHUEHVXEMHFWWRYHUL¿FDWLRQVFKHFNV as may be deemed necessary. Under no circumstances, any duplicate Attendance Slip-Cum-Entry Pass will be issued at the entrance to the meeting hall.

áj§d£ÝØ§v× { Bank of Baroda Ù~~VOTING PAPERS PASS Ø}}°}Øj¦|j¦iØz|j¦f t«}à}z«To be surrendered to the Voting counters for issue of Voting paper) ¥j¦| uj¦¡l¦q|¡ Î qANNUAL GENERAL MEETING : THURSDAY, 27TH JUNE, 2019. TIME : 10.00 a.m. |}td NAME IN BLOCK LETTERS Ü¦vÛ}Ûde¥vÛl°Îj¦de¥vÛ «j¦Û zMember / }°¢§ÛProxy / }°Ø|{AR) FOLIO/DPID/CLIENT ID NO. No. of Shares

f}yØ{j¦}°¢§Û}°Ø|{j¦ÎØSignature of the Shareholder / Proxy/ Representative present X______j¦} uj¦« l||tj¦Û}°Ød}|yi Please bring a copy of the enclosed Notice for the Meeting. e§tÐ¢|j¦t lELECTRONIC VOTING / WEBCASTING PARTICULARS e¥|EVEN e¥t le¥«t| E-Voting Event Number qde¥vÛUSER ID }v¥PASSWORD This Page has been left Blank Intentionally. áj§d£ÝØ§v× { e§tÛ«}ã j¦ãlØ|j¦id{z e§tÐ¢|j¦{

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z| j¦¡ t~~Ü¢ { e¨tÑ£}j§~¬ kliÏá¢j¦}Ü¦¥}¥Øãj¦e}ÎØj¦«ØyedµØ|j¦|ÎØd}ØzØq«ÎØ d}|}°ØãlÛv}¢qtÛj¦}°ØØj¦« { ä Ùj§~¬ kliÏá¢j¦}Ü¦¥}¥Øãj¦e}ÎØj¦«Øyed}ØzØq«ÎØqtÐi tÐ Ü¦ iq«t dtÛi dy¥Ø¥j¦Û¥Ü¦|tj¦}°j¦Û¥|t Û}¢t| loÛ ¢ÛÜ¦e||vtÐ§t ||¨¦lvÛ l¤}Û vÎz zdy àj¦d¢Ü×¦ vÖz|j¦i ãlØØ vÖzj¦}¥t«tÛ qÛ ¢j¦ ®j¦¥j¦}§ ® }¥ e¥j¦}Ø}ãqz«

%$1.2)%$52'$ Mandate for Payment of Dividend on Equity Shares (Through Electronic Mode)

1. First Shareholder’s Name (in Block Letters) :

2. Address :

3. Shareholder’s Folio number (for holding in physical :

form) D. P. ID / Client ID number (for holding in electronic form)

4. Particulars of Bank Account :

A. Bank Name :

B. Branch Name & City Pin Code :

C. Account No. : (as appearing on the cheque book)

D. Account Type (please Tick) : : SB Current Cash Credit (SB Account / Current A/c. or Cash Credit A/c)

E. IFSC Code :

F. 9 Digit Code No. of the Bank : Branch appearing on the MICR Cheque issued by the Bank

5. Please attach a self-attested photocopy of your PANCARD as Proof of Identity alongwith a photocopy of a Cheque leaf / blank cancelled cheque issued by your Bank relating to your above account for verifying the accuracy of the Code numbers

DECLARATION I, hereby declare that the particulars given above are correct and complete. If the transaction is delayed or not affected at all for reasons of incomplete information, I would not hold Bank of Baroda responsible.

Place: Signature of the First Holder

Date:

1RWH 1. ,IWKHVKDUHVDUHKHOGLQHOHFWURQLFPRGH Please complete the form, sign and submit alongwith the required documents to your Depository Participant for necessary updation. 2. ,IWKHVKDUHVDUHKHOGLQSK\VLFDOPRGH Please complete the form, sign and mail alongwith the required documents at the address of Registrar and Transfer Agent (RTA), i.e. M/s Karvy Fintech Pvt. Ltd, Karvy Selenium Tower B, Plot No.-31&32, Gochibowli, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad - 500 032 OR at Bank of Baroda, Investors’ Services Dept. 7th Floor, Baroda Corporate Centre, C-26, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051.

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...... AB SAATH HAIn TEEN, BEHTAR SE behtarEEn.

An amalgamation of 3 banks and the foundation of a better bank – Indian at heart and global in scale.

Wider Network of Branches & ATMs Complete Suite of Products Best in Class Processes ANNUAL REPORT 2018-19

HEAD OFFICE Baroda Bhavan, R C Dutt Road, Alkapuri, Baroda - 390007 Ph : (0265) 2316010

CORPORATE CENTRE Baroda Corporate Centre, Plot No. C-26, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400051 Ph : (022) 6698 5000-04 (PBX)

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Getting closer to our Interacting, engaging Empowering our Aiming to become a part Developing meaningful customers by serving and connecting with customers by promoting of our customer’s connections because, them better, resolving our audience and products & services everyday life and help strong bonds go a long their queries and building a following through online videos them create beautiful way. keeping them updated. with our potential stories. customers.