BS Bank of Baroda Consolidated balance sheet ( in rupee crores)Reformulated balance sheetEQUITY AND LIABILITIES31.03.201331.03.2012as at 31.03.2013as at 31.03.2012SHAREHOLDERS FUNDSNet operating assetsShare Capital 422.51412.38Operating assetsReserves and Surplus 32,859.2528,103.10current investments0.000.0033,281.7628,515.48trade receivables00MINORITY INTEREST 110.0591.18cash and bank balances14,151.1822,268.34NON-CURRENT LIABILITIESshort term loans and advances0.000.00Policy Liabilities (Policyholders Fund) 344,944.55279,121.60other current assets0.000.00Long-term borrowings 13,276.4711,799.02Fixed assets2550.422428.19Intangible assets00Long-term provisions 16,804.6712,590.51Cash and bank balances with RBI14,151.1822,268.34408,417.50332,117.79 balances with BANKS, call money73,550.8843,542.00CURRENT LIABILITIESgoodwill on consolidation00Short-term borrowings 13,276.4711,799.02deferred tax asset(net)00Trade Payables Non-current Investments93,453.0461,080.00Other current liabilities long term loans and advances333,625.19292,077.13policy liabilities (policyholder's fund)137,694.34113,494.34deficit in the revenue account--Borrowingsother non-current assets9,893.5810,399.32Others total operating assets541,375.47454,063.32Short-term provisions Operating liabilities559,388.31457,411.15short term borrowings (deposits)13,276.4711,799.02TOTAL EQUITY AND LIABILITIES408,417.50332,117.79trade payables0.000.00ASSETSshort term provisions0.000.00NON-CURRENT ASSETS:policy liabilities (current)137,694.34113,494.34Fixed assets2550.422428.19Borrowings0.000.00(i) Tangible assets others0.000.00(ii) Intangible assets policy liabilities (non-current)344,944.55279,121.60(iii) Capital work in Progress long term borrowings(deposits)13,276.4711,799.02(iv) Intangible assets under Development other long-term liabilitiesGOODWILL ON CONSOLIDATION long-term provisions16,804.6712,590.51Non-current investments 93,453.0461,080.00total operating liabilities525,996.50428,804.49Deferred tax asset (net) Long-term loans and advances Net operating assets15,378.9725,258.83Loans 333,625.19292077.13Others Net financial obligationsOther non-current assets 9,893.5810,399.32short term borrowings(other than deposits)-18,012.84-3,347.83439522.23365984.64Long term borrowings(other than deposits)0.000.00CURRENT ASSETS:32164.0125617.05-18,012.84-3,347.83Current investments Trade receivables Share Capital422.51412.38Cash and bank balances with RBI14,151.1822,268.34Reserve & Surplus32,859.2528,103.10 balances with BANKS, call money73,550.8843,542.00Minority Interest110.0591.18Short-term loans and advances CSE33,391.8128,606.66Loans Others NFO+CSE15,378.9725,258.83Other current assets TOTAL ASSETS559,388.30457,412.03

IS BOB Consolidated Income statementINCOMEReformulated Income statementInterest Earned36,442.0530,488.49Operating Revenueprofit on sale of investments00Interest Earned36,442.0530,488.49Other Income 4510.624100.41profit on sale of investments00Premium from Insurance Business Premium from Insurance Business Other Operating Income from Insurance Business 00Operating Income from Insurance Business Total Revenue 40,952.6734,588.9036,442.0530,488.49EXPENSESOperating ExpensesFinance Cost 24,486.4119,724.24Finance Cost 24,486.4119,724.24Operating Expense6306.365455.54Operating Expense6306.365455.54Provisions and Contingencies5409.424192.73Provisions and Contingencies5409.424192.73Other Expenses Share of earnings in Associates78.5453.12Total 36,202.1929,372.51Balance in Profit and Loss A/c broughtforward178.72138.66Consolidated Profit before Minority Interest and share of earning in Associates4,750.485,216.28Transfer to Statutory Reserve1,148.701,272.75Share of earnings in Associates78.5453.12Transfer to Capital Reserve81.4447.72Consolidated Net Profit for the yearbefore deducting Minority interest4,829.025,269.40Transfer to Special Reserve u/s 36 (1) (viii)852.48537.15Less : Minority Interest-24.79-20.83Transfer to Revenue & Other Reserves1,559.492,607.32Consolidated Profit for the yearattributable to the group4,804.235,248.57Proposed Dividend (Including Dividend Tax1,059.62812.29Balance in Profit and Loss A/c broughtforward178.72138.66Balance carried over to consolidatedBalance Sheet281.19178.72Amount available for appropriation4,982.955,387.23Investment Reserve Account0.00-68.73Transfer to Statutory Reserve1,148.701,272.75Transfer to Capital Reserve81.4447.72Operating income from sales(before tax)36,160.8630,309.77Transfer to Special Reserve u/s 36 (1) (viii)852.48537.15Tax as reportedTransfer to Revenue & Other Reserves1559.492607.32less tax allocated to other operating incomeProposed Dividend (Including Dividend Tax1,059.62812.29operating income from sales(after tax)36,160.8630,309.77Balance carried over to consolidatedBalance Sheet281.19178.72Other Operating Income Investment Reserve Account-68.73less tax on other operating income-1827.7-1744.47Total4,982.925,455.95Other operating Income (after tax)-1827.7-1744.47Diluted operating income(after tax)34,333.1628,565.30less Minority interest-24.79-20.83comprehensive income available to common34,308.3728,544.47

CFSBOB Consolidated cash flow statement(Rupee in crores)Reformulated cash flow statementA Cash flow from operating activitiesnet Profit before taxes5,248.366,336.03Reported cash from operations23,195.9014,588.08Depreciation on fixed assets321.70295.48cash investments reported514.15416.12Depreciation on investments220.55238.81free cash flow22,681.7514,171.96Bad debts written-off/Provision in respect of3,501.011,892.81Provision for Standard Asse395.21449.66financing flowsProvision for Other items848.5523.98Debt & Equityfinancing790.27-165.34(Profit)/loss on sale of fixed assets1.22-79.87Change in Cash21,891.4814,337.30Payment/provision for interest on subordinated debt930.27914.36Sub total11,466.8210,571.26Adjustments for:financing flows22,681.7514,171.96(Increase)/Decrease in investments-39140.62-12781.62(Increase)/Decrease in advances-45049.05-61884.83(increase)/Decrease in other assets1889.31-3545Increase/(Decrease)in borrowings2,852.581,031.35Increase/(Decrease) in deposits90022.9481012.69Increase/(Decrease) in other liabilities and2981.621928.7Direct taxes paid (Net of Refund)-1827.7-1744.47net cash from operating activities (A)23,195.9014,588.08B. Cash flow from investing activities :Purchase of fixed assets-560.09-456.14Sale of fixed assets45.9440.02net cash from investing activities (B)-514.15-416.12C. Cash flow from financing activities:Share Capital10.1319.57Share premium839.861625.11Unsecured Subordinated BOBds102.3188.37Dividend-812.29-753.35Interest paid / payable on unsecured-930.27-914.36net cash from financing activities (C)-790.27165.34net increase in cash & cash equivalents21,891.4814,337.30Cash and cash equivalents as at the beginning65810.3851423.72Cash and cash equivalents as at end beginning87,701.8665,761.02

comparables analysis(in Rs crore)salesearningsBook valueMarket valueP/SP/EP/BLIC housing finance7,659.601,054.006532.551614,044.771.833616637913.32520872872.149966944GRUH finance650.44145.88490.77846028.099.267711087941.322251165312.2827125236HDFC35,948.185,465.2532060.4average multiples for comparables * BOB's number BOB's valuationsales 5.5506638629x36,442.05=202277.57earnings 27.323729947x34,308.37=937432.64book value7.2163397338x33,391.81=240966.65average valuation460225.62no of outstanding shares(IN crores)349Share price from valuation1318.70

Residual earnings20092010201120122013EPS91.577589102DPS0000BPS485.27576.84651.84740.84842.84ROCE0.18869907470.13001872270.13653657340.1376815507RE(10% charge)43.04317.31623.81627.916discount rate(1.10^t)1.11.211.3311.4641present value of RE39.1314.310743801717.893313298319.06700362total present value of RE90.4010607199Continuing value586.236(assuming 5% growth in RE)present value of CV400.4070760194value per share976.07813673931429.076

Ratio analysis summarized reformulated balance sheet (in rupee crores)as on 31.03.2013as on 31.03.2012Operating assets541,375.47454,063.32operating liabilities525,996.50428,804.49net operating assets15,378.9725,258.83-0.3911447997net financial Obligations-18,013-3,348CSE33,39228,607

summarized reformulated income statement (in rupee crores)as on 31.03.2013as on 31.03.2012Operating Revenues36,442.0530,488.49total Operating expenses281.19178.72operating income from sales(after tax)36,160.8630,309.77operating income after tax34,333.1628,565.30comprehensive income to common(after minority interest)34,308.3728,544.47

Ratio analysis

Operating liability leverage 2588.71%capitalization ratio65.55%Financial leverage ratio34.45%return on net operating assets168.97%operating profit margin94.21%sales profit margin99.23%other items profit margin-5.02%comprehensive income profit margin94.15%operating expense ratio0.77%ROCE102.74%asset turnover179.35%

Residual Earnings( in rupee crores) ( Assuming cost of capital=10%)26531.2081075791Growth Rate in sales19.53%Growth Rate in operating income(after tax)20.19%Growth rate in CSE16.73%

Residual operating incomeResidual operating income valuation20132014E2015E2016E2017EOperating income (OI)36,160.8640138.554644553.79560649454.7131226654894.7315661526NOA15,378.9717685.815520338.68782523389.4909987526897.9146485624beta1.3RNOA261.00%251.92%243.16%rf0.08Residual operating income (ReOI)36908.970940839.77435145183.5886794149982.9384564151rm0.18Discount rate1.211.46411.771561d0.21PV of ReOI30503.281735537227894.115395806325504.9578757999Total PV of ReOI83902.3550071434cv-312393.365352594Continuing value312393.365352594PV of CV176337.910663305Enterprise value275619.235670448Book value of net financial assets-18,013Value of common equity257606.395670448value per share1666.2768154622