The Board of Directors has pleasure in presenting the Directors Report
 along with the audited Statement of Accounts of the Bank for the year
 ended 31st March 2011.
 
 Dividend
 
 The Board of Directors of the Bank has recommended a dividend @ 60 %
 i.e. Rs. 6 per equity share of Rs.10 each subject to approval by the
 Govt. of India.
 
 FINANCIALS
 
 Important ratios of the Bank are depicted below;
 
 Parameters                      31.3.09     31.3.10     31.3.11
 
 Capital Adequacy Ratio (%)        13.11       13.62       12.96
 
 Of which Tier I (%)                8.01        8.12        8.57
 
 Tier II (%)                        5.10        5.50        4.39
 
 Spread to Average 
 Working Fund (%)                   2.54        2.54        3.31
 
 Average Cost of Funds (%)          6.67        5.99        5.85
 
 Average Yield on Funds (%)         9.62        8.68        9.19
 
 Average Cost of Deposits (%)       6.62        5.97        5.83
 
 Average Yield on Advances (%)     10.88       10.57       10.50
 
 Earnings per Share (Rs.)          17.21       27.01       31.85
 
 Book Value per Share (Rs.)       131.00      151.17      178.64
 
 Return on Assets (%)               0.90        1.16        1.11
 
 Return on Average Net Worth (%)   16.49       22.21       21.04
 
 Provision Coverage Ratio (%)      76.45       78.95       75.67
 
 Net NPAs (%)                       0.72        0.66        0.79
 
 Profit per Employee 
 (Rs. in lacs)                      3.76        5.76        6.70
 
 Productivity per Employee 
 (Rs. in lacs)                       706         845        1063
 
 OFFICES & BRANCHES
 
 The Bank opened 129 new branches during 2010-11, taking total branches
 to 2416 as on 31.3.2011, with 993 rural, 454 semi-urban, 508 urban, 460
 metropolitan branches and 1 foreign branch.
 
 DEPOSIT MOBILISATION
 
 Total deposits of the Bank showed a significant growth of 24.36 % to
 Rs. 131887 crores as on 31.3.2011. Low cost deposits grew by 20.69% to
 Rs.44156 crores as on 31.3.2011, constituting 33.70 % of aggregate
 deposits.
 
 Bank emphasized on low cost deposits mobilization and observed saving
 deposits & CASA deposits mobilization campaign during the year. During
 the SB mobilization campaign (from 01.09.10-31.03.11), over 1.3 million
 new saving accounts were opened and saving deposit mobilized to the
 tune of Rs.2663.37 crores.
 
 CREDIT DEPLOYMENT
 
 Total advances of the Bank went up by 30.56% to Rs.94570 crores as on
 31.3.2011. Credit-deposit ratio (gross) stood at 72.18 % as against
 68.93% last year. The Bank increased its market share in the system to
 2.23 % from 2.15% during the period. The Benchmark Prime Lending Rate
 (BPLR) of the Bank was at 13.75 % on 31.03.2011. Yield on advances
 stood at 10.50 % during 2010-11 as against 10.57 % during 2009-10 in
 line with the general market scenario.
 
 NON-PERFORMING ASSETS (NPAs) MANAGEMENT
 
 The Bank attached great importance on recovery of non- performing
 assets. The Bank has recovered Rs 929.16 cr from non performing assets
 including written off debts during 2010- 11 as against Rs 681.35 cr in
 2009-10. The Gross & Net Non- performing assets of the Bank stood at
 Rs. 1647.92 crores & Rs. 736.37 crores as on 31.03.2011 The Gross & Net
 NPAs as percentage to gross advances & net advance was 1.74 % & 0.79 %
 respectively. The provision coverage ratio of the Bank stood at 75.67%
 
 SOCIAL BANKING
 
 Priority Sector Credit grew from Rs.24279 Crore as on 31.03.2010 to
 Rs.30764 Crore as on 31.03.2011, registering an absolute YOY growth of
 Rs. 6485 Crore (26.71 %). the Bank has exceeded the National Goal
 (40.00%) of PSC to ANBC by achieving 42.96 % as on Mar11.
 
 . Agriculture Credit outstanding increased from Rs.11567
 Crore as on March 2010 to Rs.13387 Crore as on March 2011. The
 Agricultural advance to Adjusted Net Banking Credit was 18.20% as on
 March 2011, thereby achieving the National goal of 18%.
 
 . Direct Agriculture Credit outstanding increased from
 Rs.8340 Crore as on March 2010 to Rs. 9808 Crore as on March 2011. Bank
 has exceeded the National Goal (13.50%) of Direct Agriculture to ANBC
 by achieving 13.70% as on Mar11.
 
 MSME Sector:
 
 . The Bank was awarded 1st prize for outstanding work in
 MSME lending from Her Excellency Honble President of India Smt
 Pratibha Patil.
 
 . Credit to Micro and Small Enterprises (MSE) grew from
 Rs. 8188 Crore as on March 2010 to Rs.11990 Crore as on March 2011,
 registering an absolute YOY growth of Rs.3802Crore (46.44%). Share of
 Micro Enterprises to
 
 Micro & Small Enterprises has exceeded the National Goal (50%) by
 achieving 50.68% as on Mar11. Credit to Micro, Small & Medium
 Enterprises (MSME) increased from Rs.9771crores to Rs.14384 crores as
 on 31.03.2011, showing a YOY growth of 47.21%.
 
 . Further the Bank has given thrust on credit delivery to
 collateral free loans covered under CGTMSE. As on 31.03.2011, 26092
 proposals have been covered under CGTMSE amounting to Rs.896.80 crores
 and the Bank has emerged amongst best performing Banks in terms of
 number of proposals covered under CGTMSE during 2010-11
 
 Table 1: Priority Sector Credit :
 
                                    March 2010         March 2011
 
 Sector / Schemes                     Amount            Amount
                                   (Rs. crores)      (Rs. crores)
 
 Priority Sector Credit               24279            30764
 Of Which
 
 a) Agriculture                       11567            13387
 
 -Direct                               8340             9808
 
 - Indirect                            3227             3579
 
 b) Micro & Small Entp.(MSE)           8188            11990
 Of Which
 
 Micro Enterprises                     5091             6077
 
 Other PSC                             4524             5387
 
 2. Weaker Section.                    6150             7547
 
 Table 2: Ratios (in percentage)
 
                                                     March   March
 Important Ratios                  National Goal     2010    2011
 
 PSC to Adjusted Net Bank 
 Credit (ANBC)                          40           41.29   42.96
 
 Agriculture Credit to Adjusted 
 Net Bank Credit                        18           18.68   18.20
 
 Micro Enterprises to Total 
 Micro & Small Entp.                    50           62.25   50.68
 
 Weaker Section Credit to Net 
 Bank Credit                            10           10.46   10.54
 
 . New Products / Schemes launched:
 
 The Bank has launched several structured products under Priority Sector
 Credit to promote agro-based industries and support trading of farm
 produce viz Scheme for Financing to Rice Shelling Units, Allbank Liquid
 Scheme for Artiyas (Commission Agents),Scheme for financing
 Doctors/Medical Practitioners for Clinics/Nursing Homes, Scheme for
 Construction of Godown under lease agreement with FCI/ Central Govt/
 State Govt. Corporation /Agencies and Scheme for Seed Processing Units.
 
 . Banks Exposure to Micro Finance Institutions (MFIs)
 
 18 number of MFI accounts involving Rs.218.54 crores has been
 sanctioned by Bank. As on 31.03.2011, there is an outstanding of
 Rs.127.93 crores,
 
 . State Level Bankers Committee (SLBC)
 
 The Bank as SLBC convener, continued thrust on co- coordinating banking
 efforts for Economic upliftment of state of Jharkhand in association
 with other banks operating in the state and drew roadmap for providing
 banking facilities to 1541 villages having population over 2000. A
 mobile banking van with ATM was also operationalised to cover 12
 villages in the state to provide banking facilities. The bank also
 started one coin vending machine at Ranchi. The Bank conducted meetings
 of SLBC from time to time and converted the SLBC into a strong forum to
 discuss and review banking initiatives for the development of the
 state.
 
 . Lead Bank Scheme
 
 Under Lead Bank responsibilities in 17 districts (13 in Uttar Pradesh,
 2 in Jharkhand and one each in Madhya Pradesh and West Bengal) the Bank
 disbursed Rs.1605.53 crores under District Credit Plan 2010-11
 achieving 93.31% of the target.
 
 . Regional Rural Banks (RRBs)
 
 The Bank-sponsored two RRBs, one in UP namely Allahabad UP Gramina Bank
 and the other in M.P. namely Sharada Gramina Bank. The two RRBs
 cumulatively disbursed Rs.1637.07 crores during 2010-11 under the
 Annual Credit Plan against a target of 1681.50 crores achieving 97.36%
 of target. The two RRBs continued to improve their performance with an
 aggregate profit of Rs.79.20 Crores during 2010-11. The accumulated
 profit stood at Rs 553.42 Crores in 2010-11 as against Rs.474.21 Crores
 during 2009-10.
 
 . Financial Inclusion
 
 Bank has been given the responsibility of 2618 villages having
 population of 2000 and above where banking services are to be provided
 by opening of banking outlet by March2012 under ICT enabled Financial
 Inclusion by adopting various models viz. Biometric Smart Card solution
 through Business Correspondents, Mobile Banking Van fitted with ATM,
 and opening of Brick & mortar branches. During the year the Bank had
 covered 1054 villages against a target of 1046 villages Transaction by
 Smart cards through HHD has commenced.
 
 . CORPORATE SOCIAL RESPONSIBILITY
 
 The Bank, as a responsible Corporate Citizen, has initiated several
 measures towards sustainable
 
 development of the society reflecting its concern for social welfare
 and developments, some of which are as under.
 
 . Financial Literacy And Credit Counselling Centres
 
 In order to provide financial education and credit counselling to the
 people having limited resources and skills to appreciate the
 complexities of financial dealings, the Bank has so far opened two
 Financial Literacy and Credit Counselling Centres christened
 Samadhan- one at Kolkata (WB) and another at Banda (UP). Setting up
 of another 11 more FLCCs is in progress.
 
 . Rural Self Employment Training Institute (RSETI)
 
 Bank has so far established 11 Rural Self Employment Training Institute
 (RSETI) up to 31.03.2011 to impart training to the rural youths and
 Farmers for setting up of small business enterprises with hand holding
 and escort services. Bank has planned to establish another 10 RSETIs in
 rest of the lead district during 2011-12.
 
 INTERNATIONAL BANKING
 
 The Bank carries out its International business through its 56
 authorised/designated branches, which includes 5 international
 branches. Export credit of the Bank as on 31.03.2011 stood at
 Rs.2911.23 crore. The bank is taking steps to increase the credit flow
 to exporters. Exporters meets are arranged at various centers
 
 Overseas presence
 
 . The Bank is having one overseas branch at Hong Kong,
 The business of the Hong Kong branch has increased from Rs 1128 cr as
 on 31.03.2010 to Rs3284 cr as on 31.03.2011. The Hong Kong branch has
 earned a profit of Rs 19.01 cr in 2010-11 as against a profit of Rs
 12.63 cr during 2009-10
 
 . The Bank is also having a Representative office at
 Shenzhen, China and in terms of regulatory guidelines; the Bank is
 eligible to open a full fledged branch. The Bank is exploring the
 possibilities of opening more overseas branches.
 
 RETAIL CREDIT
 
 In order to deliver outstanding service to our customer with focused
 attention in a specialized manner, the Bank has dedicated delivery
 channel for Retail Lending through its 27 CRBBs & 75 Retail Banking
 Boutiques (RBBs) across the country. Total outstanding under Retail
 Credit as on Mar 2011 stood at Rs. 13028.96 Crore as against Rs.
 10082.14 Crore as on Mar2010. This shows an increase of 29.23 % during
 the year. Disbursement under Retail Credit during 2010-11 was Rs.
 3868.63 Crore as against Rs.3148.97 Crore during 2009-10 registering a
 growth of 22.85 %. Online application of Retail Loans through INTERNET
 at 27 centers was introduced. Bank has finalized tie-up with a number
 of reputed Automobile manufacturers for financing their vehicles. Bank
 
 has launched Premium Housing Finance scheme for High Net worth
 Individuals (HNIs)andSARAL- 2 for the employees of the
 Organizations/Institutions, where the salaries are disbursed through
 Banks branches.
 
 FEE BASED INCOME
 
 The income from the Third Party Product (TPP) Business (Life, Non Life,
 Mutual Fund) grew by 12.07 % to reach at Rs 19.69 Crores during FY
 2010-11 from Rs 17.57 Crores in the last FY. Banks corporate General
 Insurance partner Universal Sompo General Insurance Company has
 designed a special health insurance policy (Universal Sompos Sampoorna
 Swasthya Kavach) for the customers and the employees of the Bank. The
 policy is for the protection against spiraling medical cost and
 available for individuals & families.
 
 RISK MANAGEMENT
 
 The Bank has implemented Basel II norms for calculation of Capital
 Adequacy Ratio under Standardized Approach for Credit Risk, Modified
 Duration Approach for Market Risk and Basic Indicator Approach for
 operational Risk for the year 2010-11.
 
 CUSTOMER SERVICE
 
 The Banks Customer Service Committee of the Board is committed
 towards excellence in customer service. The suggestions of the
 Committee on Procedures and Performance Audit on Public Services
 (CPPAPS), constituted by Reserve Bank of India, are accorded top
 priority for implementation in the Bank. The Bank is making constant
 endeavour to strive for and achieve an ideal situation of complaint
 free environment.
 
 KNOW YOUR CUSTOMER & ANTI MONEY LAUNDERINGS
 
 The Bank has adopted the comprehensive policy guidelines on Know Your
 Customer/ Anti Money Laundering Norms in consonance with the Reserve
 Bank of India directives. The guidelines for submission of mandatory
 returns viz. Cash Transaction Reports (CTRs), Suspicious Transaction
 Reports (STRs) and Counterfeit Currency Reports as per the provisions
 of the PMLA, 2002 have been issued from time-to-time and all
 branches/offices have been sensitised on submission of these return
 within the prescribed time limit
 
 INFORMATION TECHNOLOGY
 
 . As on 31.03.2011, the Bank has implemented CBS in
 all its branches
 
 . Online Retail Loan processing and sanction to the
 customers of the lead generating branches of CRBB has been made
 available in the intranet site.
 
 . The Internet Website http://www.allahabadbank.in is
 available in 3 languages i.e. Hindi, English and vernacular language
 Bengali.
 
 . The Internet banking for both the individuals and for
 corporate customers with RTGS/ NEFT fund transfer facilities has been
 started and is live since 01.01.2011.
 
 . Mobile banking Van with ATM through CDMA VPN
 
 connectivity with CBS network has been introduced at Dumka,
 Jharkhand,at Kasraila branch under Sitapur Zone and at Khaira branch in
 New Delhi Zone.
 
 . Beta version of Mobile banking application deployed
 successfully in test region.
 
 . In line with the directives of CBEC/RBI/IBA, EASIEST
 has been rolled out in entire India. Bank has 183 authorized branches,
 which are participating in the project. E-Payment facility for Indirect
 Taxes (CBEC- EASIEST) for Tax payers and this facility is available to
 the customers of all branches. This facility is also available through
 e-payment on Internet banking.
 
 . The Bank has implemented Cheque Truncation System
 under NCR (National Capital Region) of Delhi. The implementation of CTS
 in Chennai grid is in progress.
 
 . SMS Alerts is operational and on an average 31000 
 SMS Alerts are generated.
 
 . RTGS / NEFT have been made live in 2372 branches.
 
 . In arrangement with M/s UAE Exchange and Financial
 Services Ltd., Bank has launched two products namely X-press Money and
 Money Gram for making hassle free inward Remittances.
 
 INSPECTION AND AUDIT
 
 Bank has switched to on line Risk Based Internal Audit (RBIA) from 1st
 April 2010. Under this system the audit plan is prepared with reference
 to the Risk Profile of the branch and audit resources are directed
 towards high risk areas.
 
 VIGILANCE
 
 . Preventive Vigilance Committee has been formed at
 every branch & office of the bank. Bi-monthly Preventive Vigilance
 Committee Meetings are organized at all branches/offices.
 
 . Banks Quarterly Newsletter on vigilance issues called
 ALL-ALERT is Introduced
 
 . Initiative has been taken for formation of Off-site
 Monitoring System to screen high value suspected transactions.
 
 . Preventive vigilance workshops at various zones all over
 India were conducted during the year.
 
 OFFICIAL LANGUAGE
 
 . Compliance of various provisions under the Official
 Language Policy was ensured viz bilingual issuance of documents under
 Section 3 (3) of Official Language Act, reply of Hindi letters in
 Hindi, bilingual publication of manuals & codes, bilingualisation of
 stationery items was ensured.
 
 . Bank was awarded prestigious Indira Gandhi
 Rajbhasha Puraskar for the year 2008-09 for excellent
 
 performance in the area of Official Language Implementation from
 Official Language Department, Ministry of Home Affairs, Government of
 India. The prize was received by our Chairman and Managing Director on
 14th September, 2010 from His Excellency, Mohd.  Hamid Ansari in
 presence of Honble Union Home Minister and Honble Union Home
 Ministers of State.
 
 . Our Chairman and Managing Director received First
 Prize for Banks Bilingual House Magazine Triveni Dhara and Third Prize
 for official language implementation 2008-09 from Shri D. Subbarao,
 Honble Governor of Reserve Bank of India in the Prize Distribution
 Ceremony held on 26.05.2010 at the Central Office of R.B.I., Mumbai.
 
 . Bank has secured First Position in linguistic region
 A and Third Position in linguistic regions B and C under
 Resereve Bank Rajbhasha Shield Competitionfor the year 2009-10.
 
 . Bank has secured Third Position for our House
 Magazine Triveni Dhara under the Reserve Bank Bilingual House Magazine
 Competition 2009-10 among all the public sector banks and financial
 institutions.
 
 . Two participants of our Bank secured First and Second
 position in linguistic groups A and B respectively in the All India
 Inter Bank Hindi Essay Competition 2009-10 organised by Reserve Bank of
 India.
 
 . Under the Town Official Language Implementation
 Committee prizes, Banks Head Office received the Rajbhasha Shield,
 Zonal Office, Dehradun received the First Prize, Zonal Office,
 Lucknow, Rajmahal Road Branch, Baroda and Staff Training Centre,
 Hyderabad received the Second Prize and Zonal Office Hyderabad
 received the Third Prize for excellent implementation of Official
 Language.
 
 HUMAN RESOURCES DEVELOPMENT
 
 . The Bank laid prime importance on developing human
 capital in tune with its quest to emerge as a bank of global stature.
 During 2010-11, the Bank undertook processes for recruitment of 1,117
 Officers (including Specialist Officers) & 990 clerical cadre
 employees.
 
 . Training and capacity building was given paramount
 importance. Much emphasis was laid on e-learning and other alternate
 advanced channels of training/learning of the human capital during the
 year, in tune with the changing scenario.
 
 PUBLICITY ENDEVOURS
 
 . The bank has gone for nation-wide campaign on
 Television, Radio, and Newspapers/Magazines, hoardings etc. during the
 year 2010-11 for enhancing Banks image and brand visibility.
 
 SUBSIDIARY & JOINT VENTURE
 
 . All Bank Finance Ltd., a wholly owned subsidiary of
 Allahabad Bank, engaged in Corporate Advisory Services, Project
 Appraisal, Issue Management, Loan
 
 Syndication Debenture and Trusteeship Underwriting, posted a profit of
 Rs. 2.80 crores during 2010-11.
 
 . The Bank holds 27% equity stake in Asset Management
 Company ASREC (India) Ltd along with other Banks/ Institutions
 
 . The Bank holds 30% equity stake in joint venture
 company Universal Sompo General Insurance Company Limited for general
 insurance business along with Indian Overseas Bank, Karnataka Bank
 Ltd., Dabur Investment Ltd. and Japanese insurance major Sompo.
 
 FUTURE PLANS
 
 . The Bank will focus on Retail Business, Loan
 Syndication, Sale of Gold Coins CMS and Bancassurance etc in addition
 to other core banking activities.
 
 . The Bank is planning for overseas expansion.
 
 BOARD OF DIRECTORS
 
 . The Board of Directors, the Management Committee
 and the Audit Committee of the Board met 15, 22 and 9 times
 respectively during 2010-11. The Directors Promotion Committee,
 Shareholders/Investors Grievance Committee, IT Sub-Committee, Fraud
 Monitoring Committee, Customer Service Committee, Remuneration
 Committee, Risk Management Committee, Nomination Committee, Share
 transfer Committee, Share Allotment Committee and Flat Purchase
 Committee met 5, 1, 8, 7, 4, 1, 4, 1, 18, 1 and 2 times respectively
 during 2010-11.
 
 . The RBI Nominee Director, Shri Ramaswamy joined
 the Board as Director from 30.07.2010. Shri Ramaswamy is working as
 Chief General Manager (CGM), Expenditure & Budgetary control, at
 Central Office RBI Mumbai.
 
 . Shri Sudip Chaudhuri joined the Board as
 Shareholders Director from 03.06.2010. Shri Chaudhuri has been serving
 Indian Institute of Management, Calcutta as Professor (Economics Group)
 since 1990.
 
 . Shri R.M.Chaturvedi joined the Board as Government
 Nominee Director under Chartered Accountant category wef 14.07.2010 for
 a period of 3 years. Shri Chaturvedi is a Chartered Accountant and is
 having 26 years of experience.
 
 . Shri Gour Das joined the Bank as workmen Employee
 Director wef 16.08.2010 for a period of 3 years. Shri Gour Das is a
 Commerce Graduate and is having 38 years of banking experience.
 
 . During the year Shri Mohammad Tahir, Shri K. K. Dogra
 & Smt. Joginder Kaur retired from the Board of Directors after
 completion of their tenure.
 
 ACKNOWLEDGEMENTS
 
 The Board of Directors records its appreciation for continued support
 and patronage of the shareholders/investors of the Bank. The Board of
 Directors gratefully acknowledges the valuable and timely advice,
 guidance and support from the Reserve Bank of India, Government of
 India and other regulatory agencies and look forward to their continued
 support and co-operation. The Board of Directors is thankful to the
 customers for their continued trust and confidence on the Bank.
 
 The Board records its appreciation for valuable contributions of the
 outgoing members and welcomes the new incumbents.
 
 The Board of Directors is pleased to place on record their appreciation
 of the committed services of the Banks employees.
 
 For and on behalf of the Board of Directors,
 
                                              (J. P. Dua)
                                    Chairman & Managing Director
 
 Date  : 02.05.2011 
 Place : Kolkata