1.  Adequate provision has been made in respect of Performing and
 Non-performing Advances in terms of Reserve Bank of India (RBI)
 guidelines.
 
 2.1. (i) Reconciliation and clearance of outstanding entries
 
 in Inter Branch adjustments are in progress and especially initial
 matching of debit and credit entries in various heads have been done
 upto 31.03.2012.  Pending final clearance, the overall impact, if any,
 on the accounts, in the opinion of the management will not be
 significant.
 
 (ii) At some branches, preparation of details / balancing /
 reconciliation of accounts relating to Balances with Banks and NOSTRO
 Accounts are in progress.  Since substantial progress has been made in
 the above areas, the management is of the view that the impact of
 reconciliation, if any, on the accounts of the Bank will not be
 material.
 
 (iii) In terms of RBI directives, old difference in various Personal
 and Impersonal Account heads in respect of 330 branches aggregating net
 credit of Rs141.39 Crores was transferred to Head Office and kept in
 Contingency Account- General. RBI has further permitted not to
 report these 330 branches as arrear carrying branches in Bank''s
 quarterly statement on Balancing of Books. The management is of the
 view that the impact of these items /reconciliation, if any, on the
 accounts of the Bank will not be material.
 
 2.2. (i) Certain premises were revalued on the basis of the reports of
 the approved valuers during the year ended on 31.03.1997, 31.03.2005
 and 31.03.2007 and upward revision amounting to Rs125.99 Crore
 (commercial and residential), Rs370.08 Crore (commercial and
 residential) and Rs 298.32 Crore (commercial) respectively had been
 credited to Revaluation Reserve. Depreciation on Revalued premises is
 worked out each year on its written down value. Additional depreciation
 of Rs4.24 Crore (previous year Rs4.45 Crore) on account of revaluation
 has been transferred from Revaluation Reserve Account and shown in
 Miscellaneous Income under the head Other Income included in
 Schedule No. 14 item (vii)
 
 (ii) Depreciation has been charged on composite cost of Land and
 Building, where separate cost of land is not available.
 
 (iii) Premium on leasehold land has been amortized over the period of
 lease, based on cost or written down value, where original cost is not
 available.
 
 (iv) For the following properties registration formalities are yet to
 be completed:
 
 a.  2 residential properties purchased during the year 1990 & 1998 at
 Kolkata & Bhubaneshwar consisting of 29 & 10 flats respectively with
 total original cost of Rs 0.86 Crore (Previous year Rs 0.86 Crore).
 
 b.  1 leasehold property at Anandlok, New Delhi with original cost
 amounting to Rs 0.09 Crore (previous year Rs 0.09 Crore).
 
 2.3. (i) In respect of Investments of face value of Rs 61.25 Crore
 (Previous year Rs 0.44 Crore), the Bank is yet to receive
 scrips/certificates.
 
 (ii) Total Investments made in shares, convertible debentures and units
 of equity linked mutual fund/ venture capital funds and also advances
 against shares aggregate to Rs 1045.18 Crore (Previous year Rs 770.89
 Crore).
 
 (iii) As per RBI guidelines, an amount of Rs 23.00 Crore (Previous Year
 NIL) being an amount equivalent to post Tax profit on sale of ''Held
 to Maturity'' category securities is transferred to ''Capital Reserve
 Account''.
 
 (iv) In respect of ''Held to Maturity'' category as stated in
 significant Accounting Policy No. 3 (iii), the excess of acquisition
 cost over the face value of the security amortized during the year
 amounts to Rs 61.26 Crore (Previous year Rs 83.33 Crore) has been
 netted-off from Income on Investment shown under the head Interest
 Earned of Profit and Loss Account in terms of RBI guidelines.
 
 2.4. The Bank has not made any financing for margin trading during the
 year and also not securitised any assets.
 
 2.5. During the year, Bank has issued 2,38,10,771 equity shares of Rs
 10/- each at a premium of Rs 182.94 per share amounting to Rs 459.40
 Crore (approx.) on preferential allotment basis to Life Insurance
 Corporation of India including its various schemes (LIC). Out of
 Rs459.40 Crore, Rs 23.81 Crore (approx.) credited to Share Capital
 Account and Rs 435.59 Crore (approx.) to Share Premium A/c.
 
 3.1.1 Exchange Traded Interest Rate Derivatives: NIL (Previous year:
 NIL)
 
 3.1.2 Disclosures on risk exposure in derivatives Qualitative
 Disclosure:
 
 Operation in the Treasury Branch of the Bank are segregated in three
 functional areas i.e. Front Office, Mid Office and Back Office, which
 are provided with trained officer with defined responsibilities and
 back up roles.
 
 The Treasury Policy & Derivative policy of the Bank lays down the type
 of financial derivatives instruments, scope of usages, approval process
 as also the limits like the open position limits, deal size limits and
 stop loss limits besides delegated power for trading in the approved
 instruments. The policy also allows purchase / sale of call or put
 options to hedge cross currency proprietary trading positions and to
 offer derivative products to its customer subject to back to back
 covering by the Bank.  The Front Office takes positions and executes
 the deals while the Mid Office monitors the transactions in the trading
 book and deviations of excesses, if any, are brought to the notice of
 higher authorities. The Mid office also measures the financial risk for
 transactions on a daily basis through measurement tools such as MTM,
 VAR, Convexity and modified durations.  The figures are reported to
 Risk Management division, which appraises the risk profile to the
 Assets and Liability Management committee. The Back office settles all
 the deals with counter parties.
 
 Interest Rate Swaps which hedge interest bearing assets or liabilities
 are accounted for on accrual basis except the Swaps designated with an
 asset or liability that is carried at market value or lower of cost or
 market value in the financial statements. Gain or Losses on the
 termination of Swaps are recognised over the shorter of the remaining
 contractual life of the Swap or the remaining life of the
 assets/liabilities. Trading Swap transactions are marked to market with
 changes recorded in the financial statements. The counterparties to the
 transactions are Banks and corporate entities and deals undertaken are
 within the approved exposure limits only. The guidelines issued by RBI,
 FEDAI & FIMMDA from time to time for recognition of Income, Premium and
 Discount are followed.
 
 4.1. Income items recognised on cash basis were either not material or
 did not require disclosure under AS 9 on Revenue Recognition.
 
 4.2. The Bank adopted Accounting Standard 15 (Revised)- Employee
 Benefits, issued by Institute of Chartered Accountants of India, for
 recognition of its liabilities in respect of employee benefits, viz,
 Pension, Gratuity, Leave Encashment, LFC and Sick Leave.
 
 4.3.1.  Bank''s liabilities in respect of the funded/ non-funded
 employee benefits, viz., Pension(ABEPR), Gratuity, Leave Encashment,
 LFC and Sick Leave are recognised on the basis of actuarial valuation
 carried out by approved Actuary as per
 
 (a) Principles laid down in AS 15 (Revised) issued by the Institute of
 Chartered Accountants of India, and
 
 (b) Guidelines GN 26 issued by Institutes of Actuaries of India.
 
 4.4. Segment Reporting - Accounting Standard (AS) 17 Segment
 Reporting
 
 Segment information is given in the Consolidated Financial Statements
 in terms of para 4 of the Standard.
 
 4.5. Related Party Disclosures - Accounting Standard (AS) 18 List of
 Related Parties and Transactions
 
 a) The names of the related parties, their relationship with the bank
 and transaction effected.
 
 Expenses towards gratuity and leave encashment are determined
 actuarially on an overall company basis annually and accordingly have
 not been considered in the above information.
 
 b) Subsidiary:
 
 i) All Bank Finance Limited (wholly owned)
 
 c) Joint Venture:
 
 i) ASREC (India) Ltd.
 
 ii) Universal Sompo General Insurance Company Limited.
 
 d) Associates:
 
 i) Allahabad U.P. Gramin Bank:
 
 ii) Sharda Gramin Bank
 
 The Bank is holding 100% share in All Bank Finance Limited, 27.04% share
 in ASREC (india) Ltd., 30% share in Universal Sompo General Insurance
 Company Limited and 35% share in each of the above mentioned two
 Regional Rural Banks.
 
 The transactions with the subsidiary and Regional Rural Banks have not
 been disclosed in view of para 9 of the (AS)-18 Related Party
 Disclosure, which exempts state controlled enterprises from making any
 disclosure pertaining to their transactions with other related parties
 which are also state controlled.
 
 e) Transactions with associated company namely Universal Sompo General
 Insurance Company Limited are as follows:
 
 4.6. Lease Disclosure:
 
 A) The Bank has various operating leases for office / residential
 facilities. Disclosures in this regard are as under:
 
 i) Total of future minimum lease payments under non- cancellable
 operating leases for each of the following periods:
 
 ii) The total of future minimum sublease payments expected to be
 received under non- cancellable subleases at the balance sheet date:
 NIL.
 
 iii) Lease payments recognised in the statement of profit and loss for
 the period: Rs 76.02 Crore (previous year Rs 66.20 Crore)
 
 iv) Sub-lease payments received (or receivable) recognised in the
 statement of profit and loss for the period: NIL.
 
 B) Financial Lease:
 
 Bank is not having any assets under Financial Lease.
 
 4.7. Accounting for Taxes on Income: Accounting Standard (AS) 22
 
 During the year, an amount of Rs 18.35 Crore (Net) has been credited
 (Previous year Rs 51.94 Crore debited) to the Profit & Loss Account by
 way of adjustment of deferred tax. The major components of Deferred Tax
 Assets/ Liabilities as on Balance Sheet date are as under:
 
 The Bank does not recognise deferred tax on HTM category of investments
 as in Bank''s opinion; there is no timing difference in this regard.
 Pursuant to the opinion of the Expert Advisory Committee of the
 Institute of Chartered Accountants of India on recognition of deferred
 tax on investments, the bank has referred the issue to the Indian
 Banks'' Association for their guidance on the matter since there is a
 difference in treatment on this subject in the industry.
 
 4.8. Discontinuing Operations: Accounting Standard (AS) 24
 
 Disclosure requirement is not applicable for the year under review.
 
 4.9.  A substantial portion of the bank''s assets comprise of
 ''financial assets'' to which Accounting Standard (AS) 28 ''Impairment
 of Assets'' is not applicable. In the opinion of the management, there
 is no impairment of other assets of the Bank as at 31.03.2012 to any
 material extent requiring recognition in terms of the said standard.
 
 5.  Disclosure in terms of Accounting Standard (AS) 29 on
 Provisions, Contingent Liabilities and Contingent Assets:
 
 5.1.1.  Provisions & Contingencies debited to Profit & Loss Account:
 
 5.2. Provision Coverage Ratio
 
 The provision coverage ratio of the bank in terms of RBI guidelines as
 on 31.03.2012 is 74.00% (Previous Year 75.67%)
 
 5.3. Income from Bancassurance business during the year:
 
 Commission received on life & non-life insurance business: Rs 18.87
 Crore
 
 5.4. Concentration of Deposits, Advances, Exposures & NPAs:
 
 5.5.  Off-Balance Sheet SPVs sponsored (which are required to be
 consolidated as per accounting norms): NIL.
 
 5.6.  Unamortised Pension and Gratuity Liabilities:
 
 A.  On re-opening of Pension option to employees under Allahabad Bank
 (Employees'') Pension Regulations 1995 and enhancement in Gratuity
 limits under the Payment of Gratuity Act 1972 during the financial year
 2010-2011, the Bank had incurred huge liability towards additional load
 amounting to Rs 708.07 Crore for Pension and Rs 39.63 Crore for Gratuity,
 which were amortised in terms of Reserve Bank of India circular DBOD
 No.BP.BC.80/ 21.04.018/2010-11 dated 9th February, 2011. As per the
 provisions of the said circular, 1/5th of the amortised expenses is to
 be absorbed each year and accordingly, Rs149.54 Crore (i.e., Rs141.61 Cr
 for Pension   Rs 7.93 Cr for Gratuity, representing one-fifth of Rs
 747.70 Cr) was charged to the Profit and Loss Account in F.Y. 2010-11,
 carrying forward Rs 598.16 Crore as unamortised expenses for future
 years. Following the said directive of the Reserve Bank of India,
 during the current financial year the Bank has charged a sum of Rs
 149.60 Crore (i.e., Rs 141.60 Cr   Rs 8.00 Cr respectively) to the Profit
 and Loss Account and Rs 448.56 Crore (i.e., Rs 424.86 Cr  Rs 23.70 Cr
 respectively) is carried forward to next financial year.
 
 B.  In implementation of the Defined Contribution Retirement Benefit
 Scheme for the employees joining service of the Bank on or after
 01.04.2010, the Bank has adopted National Pension System for Corporate
 Model of NPS under the regulatory and administrative control of PFRDA
 and has joined NPS as Corporate under the purview of employer-employee
 relationship for these underlying employees. Estimated amount of
 Bank''s contribution for the current year has been provided to debit
 of profit and loss account for the year.
 
 6.  Contingent Liabilities:
 
 Such liabilities as mentioned at Sl. No.(I) to (VI) in schedule 12 of
 Balance Sheet are dependent upon the outcome of court / arbitration /
 out of court settlement, disposal of appeals, the amount being called
 up, terms of contractual obligations, devolvement and raising of demand
 by concerned parties respectively.
 
 7.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (Net of advance) Rs 110.46 Crore (Previous
 Year Rs 41.84 Crore).
 
 8.  Sector wise break up of provision held under non- performing
 advances is deducted on estimated basis from gross advances to arrive
 at the balance of net advances as stated in the Schedule-9 of the
 Balance Sheet.
 
 9.  Advances include Rs 550.00 Crore (previous year NIL) on account of
 Inter Bank Participation Certificates with risk taken by the Bank.
 Likewise, a sum of Rs 350.00 Crore (previous year NIL) has been reduced
 from advances against Inter Bank Participation Certificates with risk
 issue by the Bank.
 
 10.  During the year, the Bank has transferred a sum of Rs 209.00 Crore
 (Previous Year Rs 239.00 Crore) to Special Reserve in terms of section
 36 (1) (viii) of the Income Tax Act, 1961.
 
 11.  The Board of Directors of the Bank has recommended dividend @60%
 of paid-up capital i.e. Rs 6/- per share of face value of Rs 10/- each.
 
 12.  Figures of previous year have been regrouped or reclassified
 wherever considered necessary.