The Directors have great pleasure in presenting to you the 67th Annual
 Report of the Bank together with the Audited accounts for the year
 ended 31st March 2010.
 
 PERFORMANCE HIGHLIGHTS
 
 The performance highlights for the fnancial year 2009-10, as refected
 from the key fnancial indicators are as under: -
 
 (Rs. in crores)
 
                                           FY 2009-10     FY 2008-09
 
 Deposits                                   15062.35        15187.15
 
 Advances                                    8329.47         7780.75
 
 Gross NPA                                    293.81          160.92
 
 Net NPA                                      133.50           57.03
 
 Investments                                 6722.51         6809.15
 
 Total Income                                1489.48         1507.23
 
 Total Expenditure                           1591.61         1389.52
 
 Operating Proft                             (27.90)          193.77
 
 Net Proft after tax                        (102.13)          117.71
 
 Proft/(Loss) brought                        234.34           185.69
 forward
 
 Appropriations
 
 Transfer to Statutory Reserve                --              29.43
 
 Transfer to Capital Reserve                   9.03           25.14
 for Investment
 
 Transfer  to  Investment                     --               0.71
 Reserve Account
 
 Transfer to General Reserve                  --              10.00
 
 Proposed Dividend                            --               3.23
 
 Dividend Tax                                 --               0.55
 
 Balance Carried  over  to                   123.18          234.34
 Balance Sheet
 Business Ratios
 
 Return on Assets (ROA) (%)                  (0.58%)          0.74%
 
 CRAR – Basel-I                               7.74%          12.00%
 
 CRAR – Basel-II                              7.52%          11.50%
 
 Net NPA                                      1.60%           0.73%
 
 Business per Employee                        5.70            5.33
 
 Business per Branch                         49.01           46.90
 
 NET PROFIT/(LOSS) & DIVIDEND
 
 The net loss for the year after provisions and taxes remained at Rs.
 102.13 crores as against net proft of Rs. 117.71 crores for the
 previous fnancial year. In view of the loss incurred during the year
 2009-10, the directors do not recommend any dividend.
 
 CAPITAL, RESERVES AND CAPITAL ADEQUACY RATIO
 
 During the year, the Bank has not issued fresh shares. The Bank’s
 Capital Adequacy Ratio as on 31st March 2010 stands at 7.74% as per
 Basel I and 7.52% as per Basel II as against 12.00% and 11.50%
 respectively at the end of the previous fnancial year.
 
 LISTING AGREEMENT WITH STOCK EXCHANGES
 
 Pursuant to requirement of Listing Agreement, the Bank declares that
 its shares are listed on Bombay Stock Exchange (BSE), Jaipur Stock
 Exchange (JSE) and National Stock Exchange(NSE). The Tier-II Bonds
 (Series-III, I V, V, VI & VII) and Upper Tier-II Bonds are also listed
 at Bombay Stock Exchange. The Bank confrms that it has paid annual
 listing fees due to stock exchanges.
 
 Listing of 1,35,00,000 shares (90 lac shares and two bonus thereon) are
 pending with the Stock Exchanges. The Civil appeal fled by Bank in this
 behalf is pending before Hon’ble Supreme Court.
 
 SHOW CAUSE NOTICE FROM JAIPUR STOCK EXCHANGE LTD.
 
 The Bank has received a Show Cause Notice from Jaipur Stock Exchange
 Limited for alleged violation of clause 36 of the Listing Agreement.
 The Bank has denied any such violation and has duly replied the same.
 The Bank has also intimated to SEBI and RBI about the correspondence
 with Jaipur Stock Exchange Ltd., in this matter.
 
 TREASURY & INVESTMENT MANAGEMENT
 
 The Bank is a member of Negotiated Dealing System (NDS), NDS-Call, NDS
 OM and Clearing Corporation of India Ltd. (CCIL). Transactions in
 Government Securities are carried out through scrip less electronic
 media with on line settlement.
 
 The Bank has joined Real Time Gross Settlement (RTGS) system of Reserve
 Bank of India in June, 2004, which has eliminated settlement risks and
 has reduced transaction cost and facilitated better funds management by
 the Bank. The Bank has also joined NEFT (National Electronic Funds
 Transfer) for faster transfer of funds to & from other Banks for
 customer’s account.
 
 The Bank’s net investment in SLR and Non-SLR securities has decreased
 to Rs. 6722.51 crores as on 31.03.2010 from Rs. 6809.15 crores as on
 31.03.2009. The investment was made as per the business requirement of
 the Bank as well as for complying with statutory requirement. The level
 of SLR and Non-SLR net Investment remains to Rs. 4442.39 crores and Rs.
 2280.11 crores respectively as on 31.03.2010. The investment portfolio
 enabled your Bank to achieve a yield of 5.64% on its investment.
 
 The Bank has parked 87.34 % of its net investment under HTM category.
 Thus securities marked to market accounted for 12.66 % of the net
 investment as at the end of March 2010. The investment in RIDF in the
 form of deposit with NABARD/ SIDBI/ NHB, has increased from Rs.
 1244.57 crores as on 31.03.2009 to Rs. 2021.39 crores as on 31.03.2010,
 the same is classifed under HTM category as per RBI guidelines. The
 yield on RIDF being low, has affected overall yield on Investment.
 
 The liquidity position of the Bank was comfortable throughout the year.
 The Bank has deployed the available short term surplus funds in Call
 Money/ Reverse Repo Lending/ CBLO as also in the Units of Mutual Funds,
 interbank short term Deposits, etc.
 
 DEPOSITS & ADVANCES
 
 Total deposits of the Bank decreased from Rs. 15187.15 crores to Rs.
 15062.35 crores, while the core deposits (excluding interbank deposits)
 increased from Rs. 13832.25 crores to Rs. 14204.23 crores showing a
 growth of 2.69 % over previous year. However the Bank’s average
 deposits have shown rise of 10.36 % over previous year indicating
 steady growth during the year.
 
 Gross advances registered an increase of 7.67 % compared to the
 previous year 2008-09, and stood at Rs. 8489.78 crores as on 31st March
 2010. The CD Ratio at 51.92% as on 31st March 2009 increased as on 31st
 March 10 to 56.36 %. The growth of advances is well spread across the
 sectors and enterprises. The Yield on Advances decreased from 12.04% to
 11.68% in 2009-10 which is in line with decrease in cost of deposits.
 The growth of average advances during the year has been 1.78% over
 previous year.
 
 Bank followed policy of caution and discrimination in making advances
 to high risk sectors. As a result of surplus liquidity interest rates
 moved downward and the Benchmark Prime Lending Rate (BPLR) and Retail
 Prime Lending Rate (RPLR) registered decrease during the year.
 
 Further, Bank continued its close monitoring to contain incidence of
 fresh Non Performing Assets and made sincere endeavours for
 up-gradation of existing assets within permissible parameters /
 prudential norms. During the year under report the Bank also
 strengthened its credit approval and monitoring process, which enabled
 the Bank to keep the incidence of slippage of borrowal accounts under
 check.
 
 PRIORITY SECTOR & RETAIL BANKING
 
 The Bank’s advances to Priority Sector (inclusive of eligible
 investments) as on 31.03.2010 stood at Rs.2747.33 crores.  In terms of
 the directives from the Government of India and the Reserve Bank of
 India, the Bank has given utmost importance to lending under Priority
 Sector and Agriculture Sector by introduction of new products / schemes
 and modifying the existing one for its growth. Break up of sector wise
 outstanding under Priority Sector Advances at the end of the fnancial
 year 2009-10 is as under:
 
 (Rs. in crores)
 
 Sector                   Finance year          Finance year
                            2009-10               2008-09
 
 Agriculture               1455.19                 963.61
 
 Small Enterprises          904.28                 800.33
 
 Micro Credit                33.39                   1.87
 
 Education                    9.29                   6.08
 
 Housing                    345.18                 260.16
 
 Total                     2747.33                2032.05
 
 The net level of Priority Sector Advances for the year ended stood at
 Rs. 2747.33 crores constituting 35.31% of ANBC.  The Direct Agriculture
 Advances have shown increasing trend and reached to Rs. 303.67 crores
 as of March, 2010 compared to Rs. 155.98 crores as of March, 2009. The
 advances under Small Enterprises including manufacturing and service
 enterprises reached a level of Rs. 904.28 crores and the Housing loan
 portfolio stood at Rs. 345.18 crores whereas Education loans have
 increased to Rs. 9.29 crores.  Under the prime product of Direct
 Agriculture Advances i.e.  under RBKCC/RBKGC Bank has issued 3840 fresh
 cards aggregating Rs.36 crores. Under tie up arrangement with various
 tractor manufacturing companies Bank has disbursed Rs. 12 crores in 309
 loan accounts during the year ended March, 2010.
 
 The Bank has set up Rural Development and Self Employment Training
 Institutes (RSETIs) under the banner of “RAJASTHAN SWAROJGAR VIKAS
 SANSTHAN (RSVS)” at Udaipur and Jodhpur. The institute provides expert
 guidance and assistance to rural youths and renders all possible help
 for obtaining credit facilities and also assists them in setting up
 their ventures successfully. During the year, the two institutes have
 conducted 53 training programmes benefting 3639 entrepreneurs.
 
 The State Government has allocated land at Udaipur for development of
 infrastructure for RSETI on concessional rate i.e. 5% of reserve price.
 The National Institute of Rural Development (NIRD) has provided grant
 of Rs. 1.00 crore for establishing infrastructure (building) at RSETI
 Udaipur.  The construction work at RSETI Udaipur is nearing completion
 and the institute is likely to start functioning at the new building
 soon.
 
 The Bank has actively participated in various Government Sponsored
 Programmes and had disbursed loan of Rs.13 crores in 2797 loan
 accounts. The Bank has organised camps for fnancing self help groups
 and disbursed loan of Rs.5.00 crores to 445 self help groups.
 
 OPERATIONS OF MEWAR AANCHALIK GRAMIN BANK (MAGB )
 
 Bank’s sponsored RRB namely Mewar Anchalik Gramin Bank (MAGB)
 established on 25.01.1983 has 58 branches in 3 districts viz Udaipur,
 Rajsamand & Pratapgarh. All the branches are computerised. With
 effective management, the MAGB has earned operating proft of Rs. 246.38
 lacs during the year 2009-10. The deposits of MAGB has increased to Rs.
 435.66 crores and advances reached to the level of Rs 144.03 crores as
 on 31.3.2010.
 
 RETAIL BANKING:
 
 The Bank has achieved an over all growth of 16.39% under the retail
 assets portfolio of Home Loan, Mortgage Loan, Vehicle Loan and Personal
 Loan products in the current FY as compared to 3.22% growth achieved in
 the last FY :
 
 ( Rs. in lacs)
 
                         Outstanding as on        Outstanding as on 
                              31.03.2009            31.03.2010
 
                        Number     Amount       Number     Amount
                         of                       of
                        Accounts                Accounts
 
 Home                    6178      20459         6432      25214
 Loans
 (Direct)
 
 Mortgage               1710       12061         1641      10828
 Loan/
 OD
 
 Vehicle                 148         216          356        886
 Loans
 
 Personal              23946       15233        24598      18904
 Loans/
 CCL
 
 Total                 31982       47969        33027      55832
 
 The Personal Loan / CCL and Home Loan (direct) portfolio of the Bank
 has increased by 24% and 23.24% while Mortgage Loan has decreased by
 10.22% during the FY 2009-10.
 
 ASSEST QUALITY MANAGEMENT
 
 The position of NPAs & W-Off a/cs and recoveries is given in the table
 below:- (Rs in lacs)
 
                                   As on             As on
                                  31.03.2009     31.03.2010
 
 Recovery in NPA                   3341.45*       2982.37*
 
 Recovery in W-Off                  703.28*       1050.32*
 
 Up gradation                       736.78         363.13
 
 TOTAL                             4781.51        4395.82
 
 * Inclusive of interest
 
 During the period ended 31.03.2010 the Bank pursued its recovery drive
 aggressively. In case of small NPAs for amounts below Rs 50 lacs it was
 the Bank’s endeavor to recover maximum dues by organizing Recovery
 Camps for on the spot settlements. The hard-core high value NPAs were
 followed up through action against the defaulter borrowers, guarantors
 and judgment debtors through appropriate legal means.
 
 The Bank also exercised its right under the SARFAESI, Act 2002 in
 eligible cases and issued notices to the defaulting borrowers /
 guarantors compelling them to come forward with reasonable settlement
 proposals for liquidation of the dues of the Bank. The Bank accordingly
 made a recovery of Rs 2982.37 lacs in 3468 NPA accounts during the
 fnancial year 31.03.2010. The Bank also launched an extensive drive to
 execute decrees for enforcing recovery in hardcore accounts by
 resorting to attachment, taking possession and sale of properties.
 
 The Bank affected signifcant recoveries amounting to Rs 1050.32 lacs in
 1310 written off accounts, which added to its net proft. The Bank was
 able to affect recoveries to the tune of Rs 1132.02 lacs in high value
 NPAs with outstanding of Rs 50.00 lacs and above during the year ended
 March 2010.  Similarly, substantial recoveries to the tune of Rs
 1850.35 lacs were affected in small NPAs having outstanding up to Rs
 50.00 lacs.
 
 During the period ended March 2010 NPAs amounting to Rs 363.13 lacs
 were up graded to the category of Performing Assets. There were also
 fresh slippages aggregating Rs. 16353 lacs refecting overall situation
 of loan assets in the industry.
 
 The position of Gross & Net NPAs are as under :- (Rs in crores)
 
                                        As on           As on
                                      31.03.2009      31.03.2010
 
 Gross NPAs                             160.92           293.81
 
 Gross NPAs %                            2.04%            3.46%
 
 Net NPAs                                57.03           133.50
 
 Net NPAs %                              0.73%            1.60%
 
 Gross NPAs and Net NPAs of Bank have increased to Rs.  293.81 crores
 and Rs.133.50 crores from Rs.160.92 crores and Rs.57.03 crores
 respectively, showing an increase of 3.46% from 2.04% in Gross NPAs and
 1.60% from 0.73% in Net NPAs. The Bank is making all out efforts to
 recover its NPAs.
 
 INTERNATIONAL BANKING
 
 The Bank is handling Foreign Exchange business at its 22 branches.
 During the year 2009-10, the total Forex turnover handled by the Bank
 amounted to Rs. 19129.59 crores as compared to Rs. 23618.36 crores
 during the year 2008-09 showing a decline of 19.01% compared to last
 year. The Bank has been continuously making arrangements with foreign
 banks for augmenting export /import business of its constituents. As on
 31st March 2010, there were 67 correspondent banking relationship in 70
 countries. Export credit outstanding was Rs. 145.53 crores as on 31st
 March 10, whereas 8 Exporters have been allotted “Rajbank Exporters
 Gold Card” under the Exporters Gold Card Scheme of the Reserve Bank of
 India, entitling them to various benefts under the Scheme. The rupee
 draft drawing arrangement with M/s. Wall Street Exchange Center LLC,
 Dubai has picked up and it is now proposed to start a “Speed remittance
 facility”.  Similar arrangement of Rupee Draft drawing and “Speed
 remittance facility” will be entered with M/s Al Muzaini Exchange
 Company, Kuwait and to be started during the frst quarter of current
 year. A separate email Id nrihelpdesk@ rajbank.com has been provided
 for use by NRIs to facilitate easy communication with the Bank.
 
 FOREIGN EXCHANGE EARNING & OUTGO
 
 Total foreign exchange earned (including income in the form of
 interest, rebates, sharing of income from nostro banks, Recovery of bad
 debts etc.) at the end of year amounted to Rs 34.24 lacs
 
 Total Foreign Exchange used (including charges on nostro accounts,
 SWIFT and Reuter charges, interest paid on foreign currency borrowings,
 allowances paid in foreign currency for traveling abroad and audit fee
 paid etc. ) at the end of year amounted to Rs. 18.78 lacs.
 
 NEW SERVICES AND PRODUCTS
 
 The Bank has been offering following products & services to customers:
 
 GENERAL INSURANCE
 
 The Bank has tie-up with United India Insurance Company for General
 Insurance as well as Mediclaim products. The United India Insurance
 Company is one of the leading public sector non-life insurance service
 providers in the country, and having a large network of its
 branches/divisional offces across the country. The Bank has also tie-up
 with UIICO for selling of Group Mediclaim Policies to its customers
 namely of “RAJBANK AROGYA NIDHI” which is available on reasonable
 premium with special features. During the FY 2009-10 the Bank has
 booked Rs. 4.06 crores towards total premium and earned income of Rs.
 0.66 crore in the form of commission including Rs.0.30 crore received
 towards reimbursement of publicity expenses.
 
 LIFE INSURANCE
 
 There is a tie-up with Aviva Life Insurance Company for life insurance
 products. During the FY 2009-10, the bank has booked Rs. 43.71 crores
 in respect of total annualized premium and earned income of Rs. 13.05
 crores towards referral fee / commission.
 
 DEMAT SERVICES
 
 Since 2000, the Bank has been providing depository services to its
 customers, becoming the Depository participant (DP) of Central
 Depository Services (India) Limited (CDSL).  Presently 221 branches are
 providing Demat services.  During the Financial Year 2009-10, Bank has
 opened 55466 Depository customer accounts and earned revenue of Rs.
 2.08 crores.
 
 ON-LINE TRADING OF SECURITIES
 
 In respect of On-Line Trading of Securities, the Bank has a tie-up with
 IDBI Capital Markets Limited and Religare Securities Limited to provide
 online trading facility to its customers. As a part of the alliance,
 customers of the Bank are provided with the facility of a 3-in-1 online
 investing account wherein the Savings Bank account, Demat Account and
 the trading account are interlinked. With this facility, the Bank’s
 customers can enjoy the convenience of trading and managing their
 portfolio from any part of the world.
 
 ECGC Ltd.
 
 The Bank has also have Bancassurance arrangement with the Export Credit
 Guarantee Corporation of India Ltd.  for soliciting and procuring
 business of ECGC General Insurance business for & on behalf of them on
 agency basis.
 
 MUTUAL FUNDS
 
 Considering the good returns to its valuable investors through Mutual
 Funds in Capital Market, Bank has selling / marketing arrangements with
 following Mutual Funds:- Sr.No.  Name of Mutual Fund
 
 1.  LIC Mutual Fund
 
 2.  Prudential ICICI Mutual AMC
 
 3.  Principal PNB Mutual AMC
 
 4.  ING Vysya AMC
 
 5.  Reliance Mutual Fund
 
 6.  Birla Sun Life Mutual Fund
 
 7.  DSP Merrill Lynch Mutual Fund
 
 8.  Sundaram BNP Paribas Mutual Fund
 
 9.  Franklin Templeton Asset Management (India) Pvt. Ltd.
 
 10.  TATA Mutual Fund
 
 11.  UTI Mutual Fund
 
 12.  SBI Mutual Fund
 
 13.  Edelweiss Mutual Fund
 
 14.  Kotak Mahindra Mutual Fund.
 
 15.  DBS Cholamandlam
 
 During the Financial Year 2009–10, Bank has done total business of Rs.
 266.16 crores and earned commission of Rs.  0.22 crore.
 
 WESTERN UNION MONEY TRANSFER
 
 The Bank has been providing Western Union Money Transfer services as a
 sub-agent. The services are available at all branches of the Bank. The
 Bank has earned gross income of Rs. 0.02 crore at the end of March,
 2010 from this activity.
 
 CREDIT CARD
 
 The Bank has launched its International Credit Card in association with
 VISA on 26th December 2005 with special features. Upto the fnancial
 year 2009-10, the Bank has issued 30,609 credit cards, with 20%
 increase over previous year. New variants of the Card with enhanced
 features/ benefts have been introduced and well recognised in the
 market. Bank is offering lifetime free credit cards. Bank has also
 implemented ‘ Verifed by VISA ‘ to make online transactions secured and
 online SMS alert functionality for POS and internet transactions and to
 strengthen customer service. Apart from this, specialized SMS alerts
 are also sent on regular basis to credit card holders on events like
 birthday, dispatch of statement, value transaction alerts, outstanding
 balance reminder, due date of payment, e-statement etc.  Bank has
 implemented ‘Disaster Recovery Management’ system for Credit Cards.
 Bank is planning to come out with various reward and loyalty programmes
 in this fnancial year to increase the card base and usage cycle. Bank
 is also planning for co-branding of credit cards.
 
 DEBIT CARD
 
 Bank has tied up with ECS for issuing of ATM-cum-Debit Cards. Bank’s
 Debit Card is accepted over 90,000 outlets in India and about 13
 million POS globally with Visa Electron.  This includes over 32,000
 ATMs in India and 1.15 million ATMs world wide. The Bank has tied up
 arrangements for sharing ATMs with 12 banks including State Bank Group
 & Corporation Bank.
 
 CASH MANAGEMENT SERVICES
 
 Our Bank has good network of online branches, various Banks / Financial
 Institutions are approaching for arrangements with the Bank for various
 arrangement like collection of cheques (local and out station), draft
 drawing arrangement, cash deposit /withdrawal/remittance etc.
 Accordingly, these Services are being provided to various banks /
 institutions like ICICI Bank, Corporation Bank, HDFC Bank, Kotak
 Mahindra Bank, City Bank, Axis Bank, Yes Bank, Tata Finance Ltd. etc.
 
 BOOKING OF RAILWAY TICKETS OVER INTERNET
 
 In our endeavour to provide our esteemed customers with state of the
 art technology-enabled products and services to transact from the
 comfort and convenience of home or offce or transact even while on
 move, the Bank has signed an agreement with Indian Railway Catering &
 Tourism Corporation (IRCTC) to provide facility for booking Railway
 Tickets over internet.
 
 STAMP FRANKING ACTIVITY
 
 The Bank has pioneered this facility in the State of Maharashtra in the
 year 2004. Encouraged by response, the Bank has further expanded stamp
 franking activity in the States of Rajasthan, Gujarat, Goa & Bihar,
 generating revenue of Rs. 2.46 crores through this activity.
 
 REAL TIME GROSS SETTLEMENT CHARGES (RTGS) / NATIONAL ELECTRONIC FUND
 TRANSFER (NEFT)
 
 Bank has been providing RTGS / NEFT Scheme based on an electronic
 paperless settlement system. Looking to the wide acceptability of the
 system with low cost per transaction, all branches are RTGS / NEFT
 enabled.
 
 e-PAYMENT OF TAXES ON BEHALF OF THE CUSTOMERS
 
 To facilitate e-Payment of Taxes, Bank has been providing the facility
 through NSDL w.e.f. 01.08.2008 and the facility is available at all our
 branches.
 
 CALL CENTRE (PHONE BANKING)
 
 During this year, the Bank has established its Call Center at Jaipur
 and started Phone Banking Services. Under the Phone Banking Services,
 customers (registered for the services) may get several services just
 on a phone call. These services include enquiries on their accounts
 like Balance Enquiry, Transactions Enquiry relating to Banking
 Accounts, Credit Cards, Debit Cards, Demat accounts etc. In addition
 facilities of hot listing of debit cards & stop payment of cheques is
 also available on 24X7 basis.
 
 INFORMATION TECHNOLOGY, COMPUTERISATION & TECHNOLOGY UPGRADATION
 
 Entire business of the Bank is on Core Banking with all the 463
 branches covering 287 cities in 22 States and 2 Union Territories are
 on this platform. The Bank offers convenience of Internet Banking, Visa
 International Debit Card & SMS alert facilities to all the customers
 irrespective of branch location. Besides its own brand of VISA credit
 card, the offers include a bouquet of technology driven products. A
 24x7 Call Centre helps enhance the customers’ satisfaction.
 
 Salient Features:
 
 1.  Anywhere Banking: Covers All 463 branches covering 287 cities in 22
 States and Union Territories.
 
 2.  SMS Alert facility: Bank has been providing free SMS alerts for
 transactions beyond a threshold limit.
 
 3.  Retail Internet Banking: For online statement of accounts, fund
 transfer within the bank, DMAT account enquiry. The Bank also provides
 payment gateway interfaces for online booking of railway tickets and
 internet shopping. Customers can pay their credit card dues to the Bank
 through Internet Banking.
 
 4.  ATMs: Besides offering 127 own ATMs/ Cash Dispensers, the Bank has
 ATM Sharing arrangement with State Bank of India and Cash Tree enabling
 customers to operate on more than 15000 ATMs across the country. The
 Bank will be in a position to provide interface with majority of the
 Banks very soon being member of NFS. The Bank’s ATMs will similarly
 honour all VISA cards and select NFS member Mastercards.
 
 5.  Cheque Truncation System is operating successfully in National
 Capital Region Delhi for the past one year.
 
 6.  The Bank participates in debit & credit ECS and encourages
 customers to use RTGS /NEFT for funds transfers.
 
 7.  Centralized service tax submission, e-payment of direct taxes at
 identifed branches.
 
 8.  DR Setup operational for core banking.  Other Customer Centric
 Technology Initiatives:
 
 1.  Interface with National Financial Switch (NFS) as well as VISA
 acquiring project are in progress and are expected to be operational
 shortly.
 
 2.  Mobile banking services will soon provide the facility of fnancial
 transaction.
 
 3.  Corporate e-banking implementation is in the process and shall be
 made available during the fnancial year.
 
 4.  Passbook updation / Statement of Account facility from any branch.
 
 HUMAN RESOURCES, TRAINING & DEVELOPMENT
 
 In pursuit of Bank’s business-growth and excellence, it has been the
 endeavor of the Bank to achieve corporate goals by leveraging its human
 resources.
 
 The position of recruitment in the fnancial year 31st March, 2010 was
 as under :
 
 Year            Officers /       Clerks       Sub-       Total
                 Executives                  ordinates
 
 2009-2010          54              --          --         54
 
 2008-2009         255              14          14        283
 
 The staff-strength of the Bank as on 31st March, 2010 vis-a- vis,
 previous year stands as under:
 
 Cadre                                31/03/10    31/03/09
 
 Offcers                               2058          2106
 
 Clerical                              1357          1354
 
 Subordinates                           513           565
 
 Marketing Executives / Team             55            50
 Leaders
 
 Total                                 3983          4075
 
 It is aim of P&HRD to develop a new cadre of dynamic and charged
 manpower by exposing them to critical function like marketing
 strategies, understanding and analyzing customer needs, measuring
 customer satisfaction, market segmentation and its applications,
 developing brand image etc.
 
 STAFF TRAINING COLLEGE
 
 Ever increasing customer expectations & introduction of
 technology-based products on regular basis makes it imperative for the
 Bank to update & develop its human resources in order to keep them
 current. The Bank has its Staff Training College housed in owned
 premises with all required infrastructure & residential facilities,
 working with the mission to act as an enabling mechanism for sustaining
 growth and promoting organizational excellence by remaining
 continuously attuned to the needs of the Users.
 
 During the year under review, Staff Training College has conducted 90
 training programmes in various areas, imparting training to 2062
 participants and nominated 35 staff members to various training
 programmes conducted by BTC / NIBM / CAB & Other reputed training
 institutions.  For overall development of the senior-staff, Management
 Development Programmes were also conducted with the support of eminent
 outside faculty.
 
 The College, in view of their importance, has been including areas like
 Demat, Finance, Code of Bank’s Commitment to Customers, KYC / AML, IS
 Audit and Customer Services on regular basis, in most of the training
 programmes. Sessions on life style management with support of Doctors
 and eminent outside speakers have been incorporated in the curriculum.
 Professional audiovisual CDs & Video conferencing facility are also
 used during training programmes. Meditation and Gym facilities have
 been introduced for all round developments at staff training college.
 
 HOUSE KEEPING
 
 Bank has been endeavouring to improve the house keeping to the best
 standards. Most of the old entries in suspense accounts have been
 adjusted. Reconciliation of inter branch and inter bank accounts have
 been undertaken at regular intervals
 
 CUSTOMER SERVICES
 
 The customer service area was also closely monitored. The meetings of
 customer service committees were held at branches, Regional Offces and
 at Central Offce. Important guidelines/feedback received in this regard
 from BCSBI, RBI, IBA. Banking Ombudsman were transmitted to feld
 functionaries for implementation. It was ensured that prompt, courteous
 and personalized services are provided to our valued customers. The
 complaints/grievances of customers were promptly attended and utmost
 efforts were made to redress the same to the satisfaction of
 complainant.
 
 BRANCH EXPANSION
 
 In terms of RBI directives, the Bank has not been permitted to open any
 new branches or establish offsite ATMs.  Consequently this number of
 branches remained unchanged at 463.
 
 At the end of fnancial year 2009-10, the Bank’s network had 463
 branches (including 6 service branches), 28 offsite ATMs and 99 onsite
 ATMs covering 22 States and 2 Union Territories across the country. The
 States-wise details (population group-wise classifcation) thereof, is
 given here under :
 
 S. 
 No.  State / U.T.            Branches#          Total        ATMs
 
                   Metro  Urban  S.Urban  Rural  Branches Onsite  Offsite
 
 1 Andhra Pradesh     3      4       -       -      7        2       -
 
 2 Assam              -      3       1       -      4        3       -
 
 3 Bihar              1      -       -       -      1        -       -
 
 4 Chattisgarh        -      1       -       -      1        -       -
 
 5 Delhi             20      -       -       -     20        6       -
 
 6 Goa                -      -       1       -      1        1       -  
 
 7  Gujarat           5      1       3       1     10        4       -
 
 8 Haryana            1     10       2       1     14        6       1
 
 9 Himachal Pradesh   -      1       -       1      2        1       -
 
 10 Jammu & Kashmir   -      1       -       -      1        -       -
 
 11 Jharkhand         -      1       -       -      1        -       -
 
 12 Karnataka         2      1       -       -      3        1       -
 
 13 Kerala            -      1       -       -      1        -       -
 
 14 Madhya Pradesh    9      8       5       -     22        4       1
 
 15 Maharashtra      18     12       1        1    32        9       1
 
 16 Orissa            -      2       -        -     2        -       -
 
 17 Punjab            3      5       4        -    12        3       -
 
 18 Rajasthan        50     77      69       98   294       50      23
 
 19 Tamil Nadu        2      5       1        -     8        1       -
 
 20 Uttar Pradesh     9      4       -        -    13        1       1
 
 21 Uttranchal        -      1       -        -     1        -       -
 
 22 West Bengal       6      2       -        -     8        4       -
 
 23 Chandigarh (UT)   -      2       -        -     2        -       1
 
 24 D. Ngr. Haveli 
 (UT)                 -      -       3        -     3        3       -
 TOTAL              129    142      90      102   463       99      28
 
 # Reclassifed as per Part-II of the Uniform Code No.(Population range
 wise) circulated vide RBI letter no. DESACS. BSD.  7070/03.09.62/
 2005-06 dated 12.06.2006.
 
 The population group wise classifcation is given here under :
 
 Category#       Branches (as on) *         Offsite ATMs (as on)
                31.03.2009  31.03.2010     31.03.2009    31.03.2010
 
 Metropolitan      129        129             6              6
 
 Urban             142        142            19             19
 
 Semi-Urban         90         90             2              2
 
 Rural             102        102             2              1
 
 Total             463        463            29             28
 
 
 
 
 Category #                 Onsite ATMs (as on)
                          31.03.2009          31.03.2010
 
 Metropolitan                30                  33
 
 Urban                       29                  39
 
 Semi-Urban                  20                  23
 
 Rural                        3                   4
 
 Total                       82                  99
 
 # Reclassifed as per Part-II of the Uniform Code No.(Population range
 wise) circulated vide RBI letter no. DESACS.
 
 BSD.7070/03.09.62/2005-06 dated 12.06.2006.
 
 • Including six service branches (Delhi, Jaipur, Jodhpur, Kota, Mumbai
 & Udaipur).
 
 INSPECTION AND AUDIT
 
 Internal Control System & their Adequacy
 
 The Bank has put in place adequate and effective systems & controls,
 covering all areas in operations such as Credit, Deposits, Depository
 and other Para-banking Products, to ensure safety of assets, adherence
 to business strategy, economic use of resources, reliability of MIS,
 correctness of fnancial reports, and compliance with laws &
 regulations.  The Audit Committee of Board effectively monitors the
 working and gives directions.
 
 Internal Inspection
 
 During the year, regular inspection of 305 Branches, 12 Controlling
 Offces & 24 Departments of Central / Corporate Offce including M.A.G.B.
 was conducted. The inspections revealed that 66 & 333 branches were
 able to attain ‘Excellent’ and ‘Good’ rating respectively. Only one
 branch was found to be ‘Below Average’. Branches were evaluated on the
 basis of business parameters and compliance with risk control measures.
 
 Concurrent Audit
 
 The concurrent audit system is extended to 91 branches including
 Treasury Branch covering 51.97 % of total deposits and 76.63 % advances
 and off balance sheet business viz.  L.G. 80.50 % & L.C.98.76 % as
 against the requirement to cover minimum 50 % of the business under
 concurrent audit stipulated by Reserve Bank of India. The concurrent
 auditors are also verifying 100 % foreign exchange business at the
 Forex Branches of the Bank. Certain Departments of Central & Corporate
 Offce such as C.O. Administration, Jaipur & Mumbai, Credit Card
 Management Division, Treasury & Investment Department, Corporate Offce,
 Mumbai are also subject to concurrent audit.
 
 Services of qualifed frms of Chartered Accountants, most of them having
 DISA/CISA qualifcations, are being utilized for this work.
 
 Risk Based Supervision (RBS)
 
 The RBS process essentially involves continuous monitoring and
 evaluation of the Bank’s risk profle in relation to its
 
 business strategy and risk exposures, which is facilitated by the
 construction of a Risk Matrix.
 
 The Bank has made signifcant progress in quality and reliability of
 data, soundness of systems & technology, appropriateness of risk
 control mechanism, etc for ensuring effectiveness of Risk Based
 Supervision in critical areas.  The Bank is moving towards reorienting
 its organizational set up towards RBS and put in place effcient risk
 management architecture and strengthened the management information
 system.
 
 Risk Based Internal Audit
 
 The Bank evaluates business risks & control risks and prepares a risk
 matrix for each business location taking into account both the business
 risk & control risk factors as per Risk based Audit Plan. The
 documented risk assessment methodology is approved by the Board and the
 risk assessment is undertaken annually.
 
 In terms of the provisions of section 30(1B) of the Banking Regulation
 Act, 1949, the Reserve Bank of India appointed M/s Deloitte, Huskins &
 Sells to carry out special audit of the Bank. The Auditors have pointed
 out in their interim report that in certain standard assets, Bank has
 made less provisioning ( 0.40% as against 1.00% in commercial real
 assets sector) and also has not made required provisions for employees’
 benefts (pension and gratuity) and payment of arrears against wage
 revision (w.e.f. 1.4.2007). Bank has initiated steps to rectify the
 observations while fnalizing the annual accounts for the year 2009-10.
 
 Information Systems (I.S.) Audit
 
 The I.S. Audit Cell conducts periodical risk based audit of Information
 Systems and monitor compliance of controls to ensure safety, security &
 integrity of Data. This function also involves identifcation of the
 extent to which the Bank’s Information Technology Systems are exposed
 to various types of operational risks.
 
 The I.S. Audit Cell conducted I.S. Audits of 331 branches during the
 year covering 305 Branches & 26 Administrative Offces (Regional Offces
 & Central / Corporate Offce Departments besides software audit of
 KYC-AML, CMS Software & parameter audit of RIMS Software for Basel II
 compliance and offsite non-intrusive Penetration Testing of Network at
 Data Centre. Out of total 331 Audits, 7 Branches & Administrative
 Offces were assessed as “Medium Risk” and remaining were assessed as
 ‘Low Risk”.
 
 Reserve Bank of India appointed M/s Deloitte and Touche Consulting
 India Private Ltd. (DCIPL) in terms of provisions of section 30(1B) of
 the Banking regulation Act 1949 for conducting IS Audit of the Bank.
 
 As part of their engagement DCIPL tested controls in various domains
 viz. IT Governance, Application Controls, Infosec Governance, System
 and Infrastructure Life Cycle Management and Record Maintenance. As per
 the report there are 65 high impact fndings, 106 medium impact fndings
 and 25 low impact fndings.
 
 The Bank is taking up necessary measures for rectifcation of the
 fndings.
 
 PUBLICITY
 
 A P R agency has been appointed for image building. Besides this is
 reinforced by the Bank’s brand ambassador Ms.Hema Malini, a high profle
 personality as a brand building exercise to ramp up its business.
 
 The Bank continued to maintain its presence on all the popular
 entertainment, Business and News Channels of Radio and TV throughout
 the year. Besides usual advertisements through hoardings on Trains,
 Roadways Buses, Railway Stations, new locations were explored during
 the year by way of advertising in Bus Stands, Local Trains etc.
 
 Branch premises were also used for communication with customers /
 visitors by providing display through fex banners, posters and
 translite scrollers with slides of bank products.
 
 The bank continued maintenance of wards at Swai Man Singh Hospital and
 J.K. Loan Hospital Jaipur to demonstrate its commitment as a
 responsible corporate citizen.
 
 STATUTORY DISCLOSURE UNDER SEC.217 (2A) OF THE COMPANIES ACT, 1956
 
 Particulars of Employees as required under the provisions of Section
 217(2A) of the Companies Act, 1956, read with the companies
 (Particulars of Employees) Rules 1975, are as under:
 
 S.  Name &                   Period        Amount      Remark
 No  Designation                          paid (Rs.)
 
 1  Sh. P.L. Ahuja,          01.04.09      2271489     Retired on
    MD & CEO                   to                     completion of
                             20.11.09                  his term
 
 2  Sh. G.                   20.11.09      1357525     Appointed by
    Padmanabhan,                to                       RBI
    MD & CEO                 31.3.10
 
 STATUTORY DISCLOSURES UNDER SEC.217 (1) (e) OF THE COMPANIES ACT, 1956
 
 The Bank has been making all possible attempts to reduce energy
 consumption on its operations. The company, being a banking company and
 authorized dealer in foreign exchange, is taking all steps to augment
 its foreign exchange business and has computerized most of its
 operations. The Bank has also taken up adequate measures for
 innovation, adaptation and absorption of state of the art technology in
 its business.
 
 PROPOSED AMALGAMATION WITH ICICI BANK LIMITED
 
 The Board of Directors in it’s meeting held on 23.05.2010 have approved
 Scheme of Amalgamation of the Bank with ICICI Bank Limited. The share
 exchange ratio has been approved at 25 shares of ICICI Bank Limited for
 118 shares of The Bank of Rajasthan Limited which works out to a swap
 ratio of 1:4.72. Extraordinary General Meeting of Shareholders has been
 convened on 21st June, 2010 to approve the amalgamation scheme in terms
 of Section 44A of Banking Regulation Act, 1949. After approval by
 shareholders, application for necessary approval would be submitted to
 RBI.
 
 STATUTORY AUDITORS
 
 The Statutory Auditors M/S Gokhale & Sathe, Chartered Accountants,
 Mumbai will retire at the conclusion of the ensuing Annual General
 Meeting.
 
 AUDIT COMMITTEE
 
 The composition of Audit Committee is given in the Report on Corporate
 Governance.
 
 SUBSIDIARY COMPANY
 
 The name of the erstwhile subsidiary of the Bank namely Rajasthan Bank
 Financial Service Ltd., (RBFSL) has been struck off from the register
 of Registrar of Companies u/s 560 of the Companies Act 1956. The
 Subsidiary Company stands merged with the Bank.
 
 BOARD OF DIRECTORS
 
 During the period under report, following changes have taken place in
 the Board of Directors:
 
 1.  Reserve Bank of India vide order dated 19th November, 2010
 appointed Shri G. Padmanabhan as the Managing Director & Chief
 Executive Offcer of the Bank w.e.f. 20th November 2009 for a period of
 two years or till further orders.
 
 2.  Shri P.L. Ahuja relinquished the offce of MD & CEO on 19th
 November, 2010 after expiry of his term.
 
 3.  Reserve Bank of India vide order dated 14th December, 2009
 appointed Shri M. Ravindra Vikram, Chartered Accountant, and Shri V.
 Seshadri, as additional directors w.e.f. 14th December 2009 in exercise
 of powers conferred under section 36AB of the Banking Regulation Act,
 1949.
 
 4.  Shri V.P.Khurana , an independent and non executive director, has
 resigned from the Board w.e.f. 12th May 2010.
 
 The Board places on record its appreciation for valuable contribution
 made by Shri P.L.Ahuja and Shri V.P.Khurana during their tenure on the
 Board of the Bank.
 
 The Board welcomes new Managing Director Shri G.Padmanabhan and new
 Directors Shri M.R.Vikram and Shri V.Seshadri and looks forward to
 their guidance to the Bank.
 
 REPORT ON CORPORATE GOVERNANCE
 
 A detailed report on the status of implementation of the corporate
 governance guidelines has been furnished as an Annexure-I to this
 Report.
 
 DIRECTORS’ RESPONSIBILITY STATEMENT
 
 Pursuant to sub-section (2AA) of Section 217 of the Companies Act,
 1956, the Board of Directors of the Company hereby state and confrm
 that:
 
 1.  In the preparation of the Annual Accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures;
 
 2.  The Directors had selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the end of the fnancial year and of the proft of the
 Company for the period;
 
 3.  The Directors had taken proper and suffcient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting frauds and other
 irregularities and;
 
 4.  The Directors had prepared the annual accounts on a going concern
 basis.
 
 MANAGEMENT DISCUSSION & ANALYSIS
 
 This has been included as a separate Annexure -II to this report.
 
 ACKNOWLEDGEMENT
 
 The Board of Directors gratefully acknowledges the continued
 co-operation and support of the Reserve Bank of India, Government of
 Rajasthan and other state governments,
 
 business associates, valued customers and shareholders. The Board also
 places on record its appreciation of the dedicated services rendered by
 the employees at all levels.
 
 Place : Mumbai .
 
 Date  : 28th May, 2010
 
                                    For and on behalf of the Board
                                                  (G. Padmanabhan)
                                                 Managing Director
 
 Sd/-                               Sd/-                      Sd/-
 
 Director                       Director                 Director