It is my privilege to present the Annual Report of your great
 institution for the year ended March 31, 2011.
 
 As we step into a new Financial Year, it would be educative to refect
 on the year gone by and take stock of the challenges and opportunities
 that lie ahead.
 
 Global recovery gained strength, matured and broadened to include more
 countries in 2010. The tentativeness of the recovery process in the
 first half of 2010 prompted the US to announce a second dose of
 Quantitative Easing (QE II) to the tune of US0bn beginning with
 November 2010 and running through June 2011. Continuance of an easy
 monetary stance by the major Central Banks of the world like the
 Federal Reserve, ECB and Bank of England to avoid a double dip Global
 recession, helped in a strong recovery of the Global GDP in 2010.
 
 The IMF forecasts world output to grow by 4.4% in 2011 as against a 5%
 growth in 2010. Within the emerging countries, ‘Developing Asia
 (China, India and ASEAN-5) is expected to grow by 8.4% in 2011.
 Further, the WTO estimates, World Trade volume is likely to grow by
 6.5% in 2011 on top of a 14.5% growth in 2010.The Developing economies
 are expected to lead global trade growth in 2011. The year 2010 also
 witnessed strengthening of G-20 as a policy platform.  The G-20 is
 committed to secure strong, sustained and balanced growth which augurs
 well for the future of the global economy.
 
 Though growth moderated in the fourth quarter of 2010-11 to 7.8% after
 posting over 8.0% growth in the first three quarters, Indian economy
 grew at 8.5% in 2010-11 as against 8% in 2009-10 as per the revised
 estimates of the Central Statistical Organization (CSO). Normal monsoon
 after a gap of two years helped Agriculture to grow at 6.6% in 2010-11
 as compared to just 0.4% in 2009-10. Industry and Services grew at 7.8%
 and 9.2% in 2010-11 compared to 8.3% and 9.7% respectively in 2009-10.
 The buoyancy in the production activity in the real sector can also be
 gauged from the significant growth in indirect taxes. The high growth
 in 2010-11 was backed by not only domestic demand but also equally
 strong external demand. Indian exports grew by 37.6% in 2010-11. The
 bullishness about the Indian economy was also refected in the growth of
 the Sensex during April
 
 2010 and March 2011 by 11%. Net FIIs inflows were around US$ 30bn
 during the year 2010-11.
 
 Along with high growth, the economy also witnessed high levels of
 inflation for the major part of 2010-11. RBI increased policy rates 8
 times beginning with March 2010 to contain inflation. Though lending
 rates went up in line with policy rates, banks have posted reasonably
 high growth in their loan portfolio in 2010-11 given the strong demand
 impulses in the economy. Advances for the Banking system grew by 21.5%,
 more than the Annual growth target of 20% set by RBI. However, Deposit
 growth fell below RBIs target of 18% for 2010-11 and recorded a growth
 of only 15.9%. Frictional liquidity shortage because of Governments
 parking of the more than expected 3G revenue auction money with the RBI
 for an extended period contributed to the low deposit growth.
 
 The rising crude and commodity prices coupled with demand side
 pressures on inflation observed in the last couple of months has
 rendered inflation management as the key policy challenge as the
 economy enters 2011-12. The monetary policy measures and the base
 effect are expected to bring down inflation levels so as to sustain the
 high growth momentum in the medium term. The strong lead indicators for
 Manufacturing and Services, expectation of a normal monsoon, resilience
 in the External Sector coupled with prudent Macroeconomic Management
 are indicators of a bright Financial year 2011-12.
 
 During 2010-11, your Bank crossed the milestone of Rs. Five lakh crore
 business mix mark. Global business of the Bank reached a level of Rs.
 5,15,040 crore registering a growth of 28.41%. Domestic business
 touched Rs. 4,18,110 crore as on 31st March, 2011 showing an annual
 growth of 26.02%.  Overseas business grew by 39.87% to reach Rs. 96,930
 crore. In a year of tight liquidity, your bank has done well in
 mobilizing deposits. In contrast to banking systems deposit growth of
 15.9%, our growth was 26.9%. This helped in improving our market share
 in deposits from 4.18% to 4.58%. On Advances front too, your Banks
 growth at 22.9% was higher than the systems growth of 21.5%. Our share
 in advances also increased to 4.07% in 2011 compared to 4.03% in 2010.
 CASA deposits rose to Rs. 73,138 Crore as on 31st March, 2011 as
 against Rs. 61,843 crore in the previous year. The customer base of the
 Bank increased to 45.05 million, with the addition of 8.08 million new
 customers during 2010-11.
 
 Notwithstanding the higher provisioning mandated by the system towards
 superannuation related payments for serving and retired employees, Net
 Profit for the year 2010-11 grew by 42.94% to Rs. 2,489 Crores. The
 higher profit was on account of rising NIM and drop in NPAs.  NIM for
 domestic operations increased to 3.31% in FY 2011 from 2.92% in 2010.
 On global basis, NIM moved up to 2.92% in FY 2011 from 2.51% in FY
 2010. The Banks Gross NPA ratio improved to 2.23% as at 31st March,
 2011 in comparison to 2.85% as at 31st March, 2010 and Net NPA ratio
 improved to 0.91% in March 2011 from 1.31% in March 2010. Not only the
 NPA levels came down in 2010-11, the Bank made significant improvement
 in the Provision Coverage Ratio. The Provision coverage ratio improved
 considerably to 72.18% as at 31st March, 2011 from 65.51% as at 31st
 March, 2010. Employee Productivity measured by Business per Employee
 and Gross Profit per Employee too witnessed significant improvement in
 2011.  While business per employee increased to Rs. 1,284 lacs as at
 31st March, 2011 from Rs. 1,011 lacs in the previous year, Gross Profit
 per Employee increased to Rs. 17.89 lacs as at 31st March, 2011 from
 Rs. 11.86 lacs in the corresponding period of the previous year.
 
 I am happy to inform that the Board of Directors of your Bank has
 declared a dividend of 70%.
 
 Your Bank took a number of initiatives in a host of areas spanning from
 increasing the Customer base, enlarging the International footprint to
 delivering on the Social responsibility front during the year for a
 sustainable growth. Let me point out a few of the initiatives.
 
 Initiatives taken during 2010-2011:
 
 . To ensure faster decision making and provide the Bank a competitive
 edge in the marketplace, your Bank undertook a Reorganization of its
 business structure.  Consequent to the restructuring, the entire
 business of the Bank has been bifurcated into two broad groups of
 ‘Wholesale & International Banking Group and the ‘National Banking
 Group. Further, verticals have been created for each business such as
 Large Corporate, Mid Corporate, SME, Retail and Rural. To facilitate
 and professionalize growth of these verticals, your Bank created 12 SME
 City Centres, 5 Retail Business Centres and 15 Rural Credit Processing
 Centres during 2010-11.  All these Processing centers will help us to
 reduce the turnaround time and scale up our operations. More such
 specialized centres will be set up during the current year also.
 
 . The Project Finance and Syndication business was reactivated and was
 further reinforced during FY2011.  Financial closures were done with
 Project cost of over Rs. 27,000 crore and Syndicated debt of over Rs.
 9,000 crore.
 
 . Your Bank opened 283 new Branches during 2010-11, taking Domestic
 branch network to 3490. Similarly, 605 new ATMs were installed during
 2010-11, taking total number of ATMs to 1425 from 820 as at March,
 2010.
 
 . Your Bank recognizes the importance of Financial Inclusion. It has
 completed 100% Financial Inclusion at 2992 villages having a population
 over 2000. It has set up 41 RUDSETIs and has imparted vocational
 training to 14645 persons.
 
 . Your Bank identified man power needs and emerging skill needs. It
 recruited additional 2896 staff and imparted training to 22644 of its
 existing employees.
 
 . The Bank has launched a number of new products and services to meet
 the customers needs and to shore up its business, such as,
 
 - BOI Kisan Sathi – Aimed at benefiting tenant farmers and share
 croppers
 
 - “Jai Jawan” Salary Plus Scheme – Salary Linked Loan Scheme for
 Defence Personnel.
 
 - Star Suraksha S/B Plus – Benefits along with free accidental death
 insurance of Rs. 50,000/-.
 
 - Students ATM-cum-Debit Cards – “BINGO” – Aimed at the Youth which was
 a sweeping success.
 
 Your Bank has won a number of awards in the financial year 2010-11 in
 recognition of its multifaceted performance. To cite a few:
 
 . The Economic Times and the Nielsen company survey 2010 ranked the
 Bank 2nd in The Most Trusted Brands category and 8th in TOP Services
 Brand.
 
 . FE-EY Most Efficient Public Sector Bank Award 2010 by
 Dalal Street.
 
 . The Winners Award in International Banking Technology Award 2010 from
 IBA in the Best Business Enablement Initiative category.
 
 . National Award for Best Bank, West Zone for PMEGP under lending to
 KVIC in August 2010.
 
 The year 2010-11 was indeed a ‘Year of Turnaround when a new
 organizational structure for the Bank was implemented.
 
 The formation of Business groups and Verticals has led to a focused
 attention of various market segments. Realising that human capital is
 the most important asset in the service oriented industry, the Bank has
 recruited and trained staff in a big way.
 
 Customer acquisition and introduction of new products and services were
 given a new impetus. These steps will also be pursued in the year ahead
 and prove rewarding to the Bank. The Bank is well poised for a
 sustained growth and for improving its market share.
 
 Going forward, during 2011-12, the Banks outreach will be expanded
 through opening up of new branches and setting up of additional ATMs.
 Your Bank would focus on increasing Agriculture, SME and Mid Corporate
 Business during 2011-12. Of course, the Inclusive Growth will continue
 to receive due importance. On the International front, four new centres
 would be added i.e. New Zealand, Uganda, Canada and Botswana.
 
 The Bank has been receiving excellent support and valuable guidance
 from the Board, the Reserve Bank of India and the Government of India.
 Our customers and shareholders have shown their unstinted faith on us.
 But for the tireless efforts of our committed staff members, these
 results and developments would not have been possible. On behalf of the
 Bank and my behalf, I would like to thank all the stakeholders and look
 forward to their continued guidance and support.
 
 With warm regards,
 
                                                        (Alok K Misra)
 Date: June 6, 2011