1.  We have audited the attached Balance Sheet of ALLAHABAD BANK as at
 31st March 2011, the Profit and Loss Account and the Cash Flow
 Statement for the year ended on that date annexed thereto. Incorporated
 in the said financial statements are the accounts of :
 
 i) 20 Branches and 46 Zonal offices audited by us ;
 
 ii) 1970 Branches audited by other auditors ;
 
 iii) One overseas branch audited by local auditor;
 
 iv) One unaudited representative office in China and 424 un-audited
 branches, the returns of which are certified by the Branch Managers.
 The unaudited branches account for 1.07% of advances, 4.37% of deposit,
 0.64% of interest income and 3.80% of interest expenses.
 
 2.  The branches audited by us and those audited by other auditors have
 been selected by the Bank in accordance with the guidelines issued to
 the Bank by the Reserve Bank of India.
 
 3.  These financial statements are the responsibility of the Banks
 Management. Our responsibility is to express an opinion on these
 financial statements based on our audit.
 
 4.  We conducted our audit in accordance with the auditing standards
 generally accepted in India. Those standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free from material misstatement. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and disclosures in the financial statements.  An audit also includes
 assessing the accounting principles used and significant estimates made
 by the management, as well as evaluating the overall presentation of
 financial statement.
 
 5.  We believe that our audit provides a reasonable basis for our
 opinion.
 
 6.  Without qualifying our opinion, we draw attention to note no.
 16.3.5 of schedule 18 which describes deferment of pension liability
 and gratuity liability due to increase in ceiling to the extent of Rs
 598.16 crores pursuant to the exemption granted by the Reserve Bank of
 India to the public sector Banks from application of the provisions of
 AS 15, Employees Benefits vide its circular No
 DBOD.BP.BC/80/21.04.018/2010-11 dated February 9th , 2011, on reopening
 of Pension option to employees of public sector Banks.
 
 7.  In our opinion and to the best of our information and according to
 the explanations given to us and as shown by the books of the Bank:
 
 (i) The Balance Sheet read with the Significant Accounting Policies and
 Notes thereon, is a full and fair Balance Sheet containing all the
 necessary particulars and is properly drawn up so as to exhibit a true
 and fair view
 
 of the state of affairs of the Bank as at 31st March 2011 in conformity
 with accounting principles generally accepted in India.
 
 (ii) The Profit and Loss Account read with Significant Accounting
 Policies and Notes thereon shows a true balance of Profit for the year
 ended on that date in conformity with accounting principles generally
 accepted in India.
 
 (iii) The Cash Flow Statement gives a true and fair view of the cash
 flows for the year ended on that date.
 
 8.  The Balance Sheet and the Profit and Loss Account have been drawn
 up in Form ‘A and ‘B respectively of the Third Schedule to the
 Banking Regulation Act, 1949.
 
 9.  Subject to the limitations of the audit indicated in paragraph 1
 above and as required by the Banking Companies (Acquisition and
 Transfer of Undertakings) Act, 1970, and also subject to the
 limitations of disclosure required therein and subject to Notes No.2
 (i), 2(ii) & 2(iii) (Schedule 18) regarding balancing / reconciliation
 of unmatched entries in inter branch accounts and balancing/
 reconciliation of Balances with Banks and NOSTRO accounts;
 
 We report that:
 
 (a) We have obtained all the information and explanations, which to the
 best of our knowledge and belief were necessary for the purposes of our
 audit and have found the same to be satisfactory.
 
 (b) The transactions of the Bank, which have come to our notice, have
 been within the powers of the Bank.
 
 (c) The returns received from the Offices and Branches of the Bank have
 been found adequate for the purpose of our audit.
 
 10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
 Flow Statement comply with the applicable accounting standards.
 
 
 For M/S SUDIT K PAREKH & CO.             For M/S P.A. & ASSOCIATES
 Chartered Accountants                        Chartered Accountants
 Firm ICAI Regn. No 110512W             Firm ICAI Regn. No. 313085E
 
                         For M/S M.R. NARAIN & CO.
                         Chartered Accountants
                         Firm ICAI Regn. No. 002330S
 
 (Srikant Jilla)                           (Dilip Kumar Agarwalla)   
 Partner                                           Partner                   
 Membership No. 39461                        Membership No. 55420  
 
                        (M. N. Venkatesan)
                              Partner
                         Membership No 22993
 
 For M/S S. GHOSE & CO                      For M/S K. M. AGARWAL & Co
 Chartered Accountants                         Chartered Accountants
 Firm ICAI Regn. No 302184 E                 Firm ICAI Regn. No 853 N
 
 
                      For M/S M.C. Jain & Co
                      Chartered Accountants
                      Firm ICAI Regn. No 304012E
 
 (Chandan Chattopodhay)                              (C.P. Mishra)
  Partner                                               Partner
 Membership No.51254                            Membership No.073009
 
                        (Mukesh Kr. Patawari)
                             Partner
                         Membership No.056623
 
 Place: Kolkata
 Date : 2nd May, 2011