The Directors have pleasure in presenting the Banks Annual Report of
 the Bank along with the Audited statement of Accounts, the Profit and
 Loss accounts and the cash flow statement for the year ended March 31,
 2011.
 
 1.  PERFORMANCE HIGHLIGHTS
 
 . Total Business of the Bank increased by Rs. 41538 crore to Rs. 310763
 crore, registering y-o-y growth of 15.43 per cent.
 
 . Total Deposits increased by Rs. 17249 crore to Rs. 179356 crore,
 registering y-o-y growth of 10.64 per cent.
 
 . Gross Advance of the Bank grew by Rs. 24289 crore to Rs. 131407 crore,
 registering y-o-y growth of 22.67 per cent.
 
 . Operating Profit increased by Rs. 533 crore to Rs. 2591 crore ,
 registering y-o-y growth of 25.90 per cent
 
 . Net Profit increased by Rs. 194 crore to Rs. 1252 crore, registering
 y-o-y growth of 18.35 per cent.
 
 . Capital Adequacy Ratio (as per Basel-II) reduced to 11.64 per cent
 from 12.23 per cent in previous year.
 
 . Net worth increased by Rs. 1181 crore to Rs. 6909.54 crore, registering
 y-o-y of 20.68 per cent.
 
 . Gross NPA of the Bank reduced by Rs. 64 crore to Rs. 2394 crore from Rs.
 2458 crore in previous year. In percentage term Gross NPA reduced to
 1.82 per cent from 2.29 per cent in last year.
 
 . Net NPA increased from Rs. 727 crore to Rs. 847 crore in previous year.
 Net NPA percentage reduced to 0.65 per cent from 0.69 per cent in
 previous year.
 
 . Net Interest Margin (NIM) stood at 3.31 per cent against 1.86 per
 cent in 2010.
 
 . Average Business per Employee increased to Rs. 835 lakh from Rs. 712 lakh
 in previous year.
 
 . Net Profit per Employee increased to Rs. 3.96 lakh from Rs. 3.30 lakh in
 March 2010.
 
 . Credit to Priority Sector increased to Rs. 41949 crore from Rs. 35393
 crore in previous year, recording y-o-y growth of 18.52 per cent.
 
 . Agriculture Advance of the Bank grew by 8.08 per cent, contributing a
 share of 18.64 per cent in Net Bank Credit, which is above the RBIs
 norms of 18 per cent.
 
 . 7387 beneficiaries were issued Cent Janata Credit Cards during the
 year.
 
 . 11877 Self Help Groups formed during the year out of which 11159
 groups were credit linked.
 
 . Advances to MSE grew by 27.73 per cent from Rs. 9317 crore in year 2010
 to Rs. 11901 crore. Sixty branches have been identified for focus
 attention for MSE finance.
 
 . 1776 villages with the population over 2000 have been brought under
 Financial Inclusion Plan.
 
 . Retail loans of the Bank grew by 26.29 per cent from Rs. 11190 crore
 (2010) to Rs. 14132 crore. The share of Retail Loan in Gross Advance was
 10.75 per cent.
 
 . Education Loan grew by 31.18 per cent during the year and the total
 loan reached to Rs. 1548 crore.
 
 . Housing Loan portfolio (up to Rs. 20 lakh) shown a growth of 14.41% and
 reached to Rs. 7001 crore.
 
 . E-stamping started in the states of Delhi, Karnataka and Tamil Nadu
 to provide stamping facility.
 
 . Electronic uploading of Central Civil Pension has been started.
 
 . Bank has been appointed as Registrar by the Unique Identification
 Authority of India for carrying out enrolment work for issuance of
 Unique ID on pan India basis.
 
 . Corporate Credit increased from Rs. 75616 crore to Rs. 93554 crore
 registering a growth of 23.72 per cent during the year.
 
 . Bank has opened 82 new branches during the year and having network of
 3728 branches as on 31st March 2011.
 
 . All branches have been brought under CBS platform.
 
 . E-treasury of the Bank made fully operationalised.
 
 . Bank has obtained license to open NRI branches in Anand, Margao,
 Hyderabad and Bhuj .
 
 . Bank has signed two MoU for establishing joint venture banks – one at
 Maputo, in the Republic of Mozambique and the other at Thimpu in
 Bhutan.
 
 . The name of Centbank Financial and Custodial services Ltd.” has been
 changed as Centbank Financial Services Limited”.
 
 . Bank has made cash recovery of Rs. 736 crore in NPA accounts.
 
 . Bank has offered & successfully completed Right Issue of Rs. 2497
 crores in March / April 2011. The Rights Issue ratio was 3:5 and was
 oversubscribed by 1.07 times.
 
 . Bank own the Skoch Financial Inclusion Award 2011 for implementing
 the Bihar Rural Livelihood Project also known as JEEVIKA Project and My
 FM stars of the Industry Retail Leadership Award in February 2011.
 
 2.  INCOME & EXPENDITURE
 
 Details of income and expenditure for the period 2010-11 are given
 hereunder:
 
                                                     Rs. in crore
 
                            31.03.2011  31.03.2010  Variation        %
 
 1 INTEREST INCOME               15221       12064       3157    26.17
 
 - Advances                      11254        8648       2606    30.13
 
 - Investments                    3767        3307        460    13.91
 
 - Others                          200         109         61    83.49
 
 2 OTHER INCOME                   1265        1735       -470   -27.09
 
 (Profit on Sale of Investments)
 
 3 TOTAL INCOME (1+2)            16486       13799       2687    19.47
 
 4 INTEREST EXPENDED              9895        9519        376     3.95
 
 - Deposits                       9063        9121        -58    -0.64
 
 - Others                          832         398        434   109.05
 
 5 OPERATING EXPENSES             4000        2222       1778    80.02
 
 - Establishment                  2964        1544       1420    91.97
 
 - others                         1036         678        358    52.80
 
 6 TOTAL EXPENSES (4+5)          13895       11741       2154    18.35
 
 7 SPREAD (1-4)                   5326        2545       2781   109.27
 
 8 OPERATING PROFIT (3-6)         2591        2058        533    25.90
 
 9 PROVISIONS-NPA/INVST./OTHERS    932         509        423    83.10
 
 10 PROVISIONS FOR TAXATION        407         491        -84   -17.11
 
 11 NET PROFIT                    1252        1058        194    18.34
 
 . Interest Income grew by 26.17 per cent during the year
 
 . Net Interest Income registered a growth of 109.27 percent
 
 . Interest expenses on Deposits reduced to Rs. 9063 in March 2011 from Rs.
 9121 crore in previous year, because of maturity of high cost deposits.
 
 . Expenses on employees has gone up by 91.97% because of salary
 revision for staff & officers and provision of pension & gratuity.
 
 3.  PROVISIONS
 
 Details of Total Provisions of Rs. 1339 crore charged to the Profit and
 Loss Account during the year 2010-11 vis-a-vis previous year are
 detailed as under:
 
                                                    (Rs. in crore)
 
                                   31.03.2011  31.03.2010  Variation
  
 Provisions for Standard Assets        106          30        76
 
 Provisions for NPAs                   632         288       344
 
 Depreciation/Provision on Investments 154          65        89
 
 Provisions for Taxes                  407         491       -84
 
 Others                                 40         126       -86
 
 TOTAL                                1339        1000       339
 
 4.  SPREAD ANALYSIS
 
                                                   (In percentage)
 
                                       31.03.2011      31.03.2010
 
 Cost of Deposits                        5.71             6.29
 
 Cost of Funds                           5.82             6.34
 
 Yield on Advances                      10.29             9.82
 
 Yield on Investments                    7.14             6.74
 
 Net Interest Margin                     3.31             1.86
 
 Cost Income Ratio                      60.68            51.91
 
 . Cost of Deposits decreased from 6.29 per cent in 2011 to 5.71 per
 cent in 2011.
 
 . The yield on advances and yield on investments both increased to
 10.29 per cent and 7.14 per cent from 9.82 per cent and 6.74 per cent
 respectively in previous year.
 
 . Net Interest Margin significantly increased from 1.86 (2010) to 3.31
 per cent.
 
 . Cost Income Ratio increased from 51.91 per cent in 2010 to 60.68 per
 cent, on account of increased establishment expenses
 
 5.  BANKING RATIOS
 
                                                     (In percentage)
 
                                              2010-11       2009-10
 
 Interest Income to Average Working Fund (AWF)   8.49         7.56
 
 Non-Interest Income to AWF                      0.71         1.09
 
 Operating Profit to AWF                         1.45         1.29
 
 Return on Average Assets                        0.70         0.66
 
 Business Per Employee (Rs. in lakh)                835          712
 
 Net Profit per Employee (Rs. in lakh)             3.96         3.30
 
 6.  CAPITAL TO RISK WEIGHTED ASSETS RATIO (CRAR)
 
 The components of Capital Adequacy Ratio were as under:
 
                                      31.03.2011       31.03.2010 
                                Basel-I   Basel-II   Basel-I   Basel-II
 
 Risk Weighted Assets
 (Rs. in crore)                    128587     116619    104344      92181 
 Capital Funds (in percentage)
 
 Tier-I                            5.81       6.31      6.03       6.83
 
 Tier-II                           4.93       5.33      4.78       5.40
 
 Capital Adequacy Ratio           10.74      11.64     10.81      12.23
 
 7.  NET PROFIT & DIVIDEND
 
 The Bank earned Net Profit of Rs. 1252 crore for the financial year
 2010-11. The Board of Directors are pleased to recommend a dividend @
 25 per cent.
 
 8.  CHANGES IN THE BOARD DURING THE YEAR
 
 During the year under review, the following changes took place in the
 Board of Directors of the Bank:
 
 . Shri Ramnath Pradeep has been appointed as CMD of Corporation Bank
 w.e.f. September 1, 2010.
 
 . Shri Arun Kaul has been appointed as CMD of UCO Bank w.e.f. September
 1, 2010.
 
 . Smt. V.R. Iyer has been appointed as Executive Director with effect
 from September 1, 2010.
 
 . Shri R.K. Dubey has been appointed as Executive Director with effect
 from September 1, 2010.
 
 . Shri M.K. Bhattacharya ceased to be a Director with effect from July
 30, 2010.
 
 . Shri Salim Gangadharan has been appointed as RBI Nominee Director
 with effect from July 30, 2010.
 
 . Shri M.S. Johar retired on January 1, 2011.
 
 9.  DIRECTORS RESPONSIBILITY STATEMENT
 
 The Directors confirm that in the preparation of the annual accounts
 for the year ended March 31, 2011;
 
 . The applicable accounting standards have been followed along with
 proper explanation relating to material departure, if any;
 
 . The accounting policies framed in accordance with the guidelines of
 the Reserve Bank of India were consistently applied;
 
 . Reasonable and prudent judgement and estimates were made so as to
 give a true and fair view of the state of affairs of the Bank at the
 end of the financial year and of the profit of the Bank for the year
 ended March 31,2011;
 
 . Proper and sufficient care was taken for the maintenance of adequate
 accounting records in accordance with the provisions of the applicable
 laws governing banks in India ; and
 
 . The accounts have been prepared on a going concern basis.
 
 10.  CORPORATE GOVERNANCE
 
 The Board of the Bank is committed to adapt Corporate Governance
 practices in letter and spirit. The Bank has adopted well documented
 system and practice on Corporate Governance.
 
 11.  ACKNOWLEDGEMENT
 
 The Board of Directors places on record its gratitude to the Government
 of India, Reserve Bank of India and the Security Exchange Board of
 India for their valuable guidance and support. The Board acknowledges
 with gratitude the unstinted support and faith of its customers and
 shareholders. The Board wishes to place on record its appreciation of
 the dedicated services and contribution made by members of staff for
 the overall performance of the Bank.
 
                            For and on behalf of the Board of Directors
 
 Place: Mumbai                                               S. Sridhar
 
 Date : May 30, 2011                     Chairman and Managing Director