1.  The Board of Directors have pleasure in presenting the Annual
 Report together with Audited Balance Sheet and Profit and Loss Account
 of the Bank for the year ended 31st March, 2011.
 
 2.  Performance at a glance :
 
 2.1 The aggregate business of the Bank crossed another milestone mark
 of Rs. 2,00,000 crore during the financial year 2010-11. The total
 business of the Bank increased by Rs.47,662 crore at a growth rate of
 30.56% to reach Rs.2,03,598 crore at the end of the financial year
 2010-11, from Rs.1,55,936 crore at the end of previous financial year
 2009-10.
 
 2.2 The total deposits of the Bank have grown to Rs.1,16,748 crore as on
 31st March, 2011 by Rs.24,014 crore from Rs.92,734 crore as on 31st March,
 2010 registering a growth of 25.90%.
 
 2.3 The Bank continued its prudent approach in expanding quality credit
 assets in line with its policy on Credit Risk Management. The advances
 of the Bank increased to Rs.86,850 crore as on 31st March, 2011 by
 Rs.23,647 crore from Rs.63,203 crore as on 31st March, 2010 registering a
 growth rate of 37.41%.  During the financial year, focused attention
 was given for accelerated lending under agriculture, SSI, SMEs and
 midsize corporate segments for expansion of credit.
 
 2.4 The performance of the Bank under recovery of NPAs during the
 financial year continued to be good. During the financial year, the
 Bank effected a cash recovery and upgradation of NPAs of Rs.627.33 crore
 as compared to Rs.320.07 crore in the previous financial year.
 
 2.5 The Bank recorded an encouraging performance in different
 functional areas during the financial year 2010-11 which resulted in
 increased earnings in absolute terms. The Net Interest Margin also
 marked an improvement from 2.07% as at 31st March 2010 to 2.52% as at
 31st March 2011.
 
 3.  Income Analysis
 
 3.1 Interest Income of the Bank recorded a growth of Rs.2,147.56 crore
 (30.73%) from Rs.6,987.69 crore in the year 2009-10 to Rs.9,135.25 crore,
 as against the Interest expenses which grew by 21.85% from Rs. 5,084.35
 crore during the financial year 2009-10 to Rs.6,195.51 crore during the
 year 2010-11. The Net Interest Income recorded a growth of
 Rs.1,036.41crore [54.45%] during the same period.
 
                                                    ( Rs. in Crore)
 
                                                           Change
 Particulars                     2009-10       2010-11      in %
 
 Interest Income                6,987.69      9,135.25      30.73
 
 Interest Expenditure           5,084.35      6,195.51      21.85
 
 Net Interest Income            1,903.34      2,939.74      54.45
 
 Operating Expenses             1,259.95      1,641.71      30.30
 
 Operating Profit               2,136.73      2,622.40      22.73
 
 Provisions & Contingencies       474.43        688.76      45.18 
 (Excl. Tax)
 
 Profit before Tax              1,662.30      1,933.64      16.32
 
 Provision for Tax                492.05        520.37       5.76
 
 Net Profit                     1,170.25      1,413.27      20.77
 
 3.2 The total Income of the Bank [total of Interest Income and
 Non-Interest Income] improved to Rs.10,459.62 crore during the financial
 year 2010-11 from Rs.8,481.03 crore in the previous financial year
 recording a rise of Rs.1,978.59 crore [23.33 %].
 
 3.3 Non-Interest Income from Core Areas increased by Rs.113.53crore
 [17.58%] from Rs.645.82 crore in the financial year 2009-10 to Rs.759.35
 crore in the financial year 2010-11. The Total Non-Interest Income has
 declined from Rs.1,493.35 crore as on 31.03.2010 to Rs.1,324.37 crore as on
 31.03.2011.
 
 3.4 The Net Interest Income recorded a growth of 54.45% during the
 financial year from Rs.1,903.34 crore as on 31.03.2010 to Rs.2,939.74 crore
 as on 31.03.2011.
 
 3.5 The Operating Expenses have shown an increase of 30.30% during the
 financial year 2010-11 and stood at Rs.1,641.71 crore as compared to
 Rs.1,259.95 crore in 2009-10.
 
 3.6 The Cost to Income Ratio (Operating Expenses/Spread + Non Interest
 Income) stood at 38.50%.
 
 4.  Spread Analysis
 
                                                         [Rs. in crore]
 
                                                            Growth
 Particulars        2009-10        2010-11
                                                     Absolute       %
 
 Average          91,750.00     1,16,636.00         24,886.00    27.12
 Working Funds
 
 Total Interest    6,987.69        9,135.25          2,147.56    30.73
 Income
 
 Total Interest    5,084.35        6,195.51          1,111.16    21.85
 Expended
 
 Interest Spread   1,903.34        2,939.74          1,036.40    54.45
 
 Yield on Funds        7.61%           7.83%
 
 Cost of Funds         5.54%           5.31%
 
 Net Interest          2.07%           2.52%
 Margin
 
 5.  Operating Profit
 
 5.1 The Operating Profit for the financial year 2010-11 stood at
 Rs.2,622.40 crore as compared to Rs.2,136.73 crore in the financial year
 2009-10 registering an increase of Rs.485.67 crore [22.73%].
 
 5.2 The Asset Utilisation Ratio [percentage of Operating Profit to
 Average Working Funds] stood at 2.25% for the financial year 2010-11
 compared to 2.33% for the financial year 2009-10.
 
 6.  Provisions
 
 6.1 The Provision for Loan Losses, Provision on Standard Assets,
 Taxation and others aggregated to Rs.1,209.13 crore in the financial year
 2010-11 as compared to Rs.966.48 crore in the financial year 2009-10.
 
 7.  Net Profit and Dividend
 
 7.1 The Bank registered a Net Profit of Rs.1,413.27 crore for the
 financial year 2010-11 compared to Rs.1,170.25 crore in the financial
 year 2009-10.
 
 Year                         Net Profit         Growth
 
                             [Rs. in crore]           %
 
 2008-09                        892.77            21.47
 
 2009-10                      1,170.25            31.08
 
 2010-11                      1,413.27            20.77
 
 7.2 The Board of Directors has recommended a Dividend of 200% for the
 financial year 2010-11 which works out to Rs.20.00 per fully paid-up
 share of Rs.10/- each.
 
 7.3 In terms of extant guidelines, the Bank will pay the Dividend
 Distribution Tax for the Financial Year 2010-11. Accordingly the total
 outflow on account of Dividend for the year 2010-11 will be Rs.344.33
 crore including the Dividend Distribution Tax.
 
 7.4 Out of the Net Profit a sum of Rs.959.89 crore was transferred to
 Statutory & General Reserves, Rs.91 crore was transferred to Special
 Reserve, Rs.3.05 crore to Capital Reserve and Rs.15 crore was set-aside for
 Staff Welfare Fund.
 
 8.  Net Worth and CRAR
 
 8.1 The Net Worth of the Bank improved to Rs.7,138 crore as on 31st
 March, 2011 from Rs.5,775 crore as on 31st March 2010.
 
 8.2 For the year ended 31.03.2011, the Bank has raised bonds
 aggregating to Rs.550 crore [under Tier-II] for strengthening the Capital
 Adequacy and enhancing the long term resources of the bank.
 
 8.3 The Bank also issued and allotted 46,92,554 Equity Shares of the
 face value of Rs.10/- each at an issue price of Rs.658.49 per share to
 Government of India on preferential basis to further strengthen its
 CRAR under Tier I Capital.
 
 8.4 The Capital to Risk Adjusted Assets Ratio (CRAR) stood at 12.90%
 (Basel I) as on 31st March, 2011 as against 15.00% as on 31st March,
 2010 which is much above the norm of 9% stipulated by Reserve Bank of
 India. The CRAR as per Basel II guidelines works out to 14.11%.
 
 8.5 The Tier-I component of CRAR under Basel I has declined to 7.95% as
 on 31st March, 2011 as compared to 9.03% as on 31st March, 2010, as
 Reserve Bank of India increased the risk weight for residential housing
 loans of Rs.75 lakh and above in the second quarter review of Monetary
 Policy for 2010-11.
 
                            Basel I                Basel II
 Category              March       March       March        March
                       2010        2011        2010         2011
 
 Tier-I Capital        9.03%       7.95%       9.25%        8.69%
 
 Tier-II Capital       5.97%       4.95%       6.12%        5.42%
 
 Total                 15.00%     12.90%    15.37%        14.11%
 
 8.6 The Return on Equity, Earnings Per Share and Book Value per Share
 for the Financial Year 2010-11 stood at 20.70%, Rs.98.50 and Rs.497.62
 respectively, against 20.26%, Rs.81.58 and Rs.402.60 respectively for the
 previous Financial year.
 
 9.  Consolidated Accounts
 
 9.1 As per RBI guidelines, the Bank has consolidated the financial
 accounts as at 31st March, 2011 with those of its wholly owned
 Subsidiary viz., Corp Bank Securities Ltd.  As per the consolidated
 statement as on 31st March, 2011, the Net Worth of the Corp Bank group
 stood at Rs.7,201 crore as compared to Rs.5,832 crore as at 31st March,
 2010.  The consolidated Operating Profit and Net Profit for the
 financial year 2010-11 is Rs.2,632.20 crore and Rs.1,420.12 crore,
 respectively compared to Rs. 2,146.03 crore and Rs. 1,181.35 crore,
 respectively for the financial year 2009-10. The Bank has complied with
 the RBI guidelines and the Accounting Standards prescribed by the
 Institute of Chartered Accountants of India.
 
 10.  Banks Service Outlets
 
 10.1 The Banks total service outlets crossed 5000 mark during the year
 ending 31st March 2011 to reach 5,111 service outlets, comprising of
 1,361 branches, 1,250 ATMs and 2,500 Branchless Banking Units across
 the country. Out of these 206 branches, 105 ATMs and 1,300 Branchless
 banking Units were opened during the year. The Bank is also having its
 representative offces at Hongkong and Dubai.
 
 11.  Advertisement and Publicity
 
 11.1 During the year, concerted efforts were made for brand and image
 building of the Bank. The Bank has appointed Sprint Athlete Miss
 Ashwini A C as the new Brand Ambassador of the Bank. She has been
 appointed as
 
 Manager of the Bank. She has won Gold Medals at the 2010 Commonwealth
 Games and the 2010 Asian Games.  Apart from this, the Bank continued to
 communicate messages on its products, services, interest rates and the
 performance to the customers, shareholders and the general public
 through advertisements and outdoor publicity units.
 
 12.  Government Business
 
 12.1 The Direct/Indirect tax collections of the Bank for the year ended
 March 2011 stood at Rs.36,588 crore from 10.79 lakh challans as compared
 to Rs.33,149 crore from 9.81 lakh challans collected during the
 corresponding previous year with a growth rate of 10.4% and 10%
 respectively under amount collected and number of challans handled.
 
 12.2 The Bank has earned an aggregate income of Rs.8.11 crore under
 Government business for the year ended March 2011, as against Rs.6.62
 crore achieved during the corresponding previous year.
 
 13.  Corporate Social Responsibility:
 
 13.1 The Bank initiated several welfare measures focusing on the basic
 needs and aiming at the larger benefits of the society, to fulfill its
 commitment to social priorities as a responsible Corporate citizen
 during the Financial Year 2010-2011.
 
 13.2 Corporation Bank Heritage Museum & Research Centre, Udupi: The
 Heritage Museum and Financial Research Centre was launched by the
 Honble Union Finance Minister Shri Pranab Mukherjee on the 106th
 Foundation Day of the Bank. The Heritage Museum would remind the people
 about the path traversed by the Banking institutions in the coastal
 district of Karnataka in general and Corporation Bank in particular, by
 showcasing the evolution of Banking, banking instruments, records, Bank
 notes and currency. The Heritage Museum will be developed as a tourist
 spot for the pilgrims who visit the temple town of Lord Krishna, Udupi.
 
 13.3 Support to Societal Concerns:
 
 13.3.1 Assistance to Charitable Institutions:
 
 13.3.2 The Bank extended CorpCompassion donation towards funding –
 
 (i) a fully equipped Hi-tech Ambulance with life saving medical
 equipments to K. R. Hospital, Mysore, through Sri Jayadeva Institute of
 Cardiology, Bangalore, (ii) Janseva Foundation, Pune, for
 rehabilitation of destitute,
 
 (iii) Centre for Development studies and Activities, Pune, for
 development of studies and (iv) Mohan Foundation, Hyderabad for Multi
 Organ Harvesting Aid.
 
 13.3.3 Supply of Books for Rural Libraries set up by the Bank: As part
 of its Centenary celebrations, the Bank had launched the project of
 setting up 100 Rural Libraries at identifed rural centres across the
 country, to be developed as Rural Knowledge Centres, in association
 with local Village Panchayats/Educational institutions in a phased
 manner.  The project, which culminated with the setting up of 100 Rural
 Libraries, has been well received by the rural users.  The Bank, as per
 the Scheme, also supplied additional sets of books worth Rs.10,000/- to
 each of these libraries during the year 2010-11.
 
 13.3.4 Scholarships to pursue higher studies: As part of its Rural
 Development scheme launched during the Centenary celebrations, the Bank
 supported 15 eligible economically backward students of identified
 villages across the country with educational scholarships to pursue
 higher/technical education.
 
 13.3.5 CorpBank Gold Medal scheme: The Bank instituted ‘The Best
 Outgoing Student Awards in 25 identified educational institutions
 across the country under its CorpBank Gold Medal Scheme for promoting
 excellence, both in academic and extra curricular activities. Under the
 scheme, Medals weighing 8 grams of gold have been awarded to the Best
 Outgoing Students of the identified institutions across the country.
 
 13.3.6 Other initiatives: The Bank extended financial assistance to :
 
 - Arogya Sandhan Charitable Trust, Santoshpur, Kolkata for
 rehabilitation project of mentally challenged.
 
 - Belgaum District Association for Blind, Belgaum for Special Children
 of Maheshwari School for Blind, Belgaum for infrastructure upgradation.
 
 - Indian Red Cross Society, Mangalore for acquiring a Generator and a
 Computer unit for help maintaining the Blood Bank in Mangalore.
 
 - Sarvodaya Jagruthi Trust (Regd.), Mangalore, for distribution of new
 books and uniforms to the children of members of various SHGs who
 belonged to the economically and socially backward families.
 
 - Shri Sringeri Sharada Peetham Trust (Regd.), Shringeri, towards
 supporting their social welfare projects, etc.
 
 13.3.7 The Bank has also involved itself in several initiatives in the
 field of Education, development of infrastructure, Rural development,
 Health and Hygiene, promotion of Art and Culture. The Bank supported
 many institutions who have been serving the Destitute and orphans,
 Senior citizens and Special Children, by funding their rehabilitation
 projects. The Bank funded several projects for providing basic hygienic
 facilities like toilets. clean drinking water facilities and water
 coolers in schools and institutions.
 
 13.4 Corporation Bank Self-Employment Training Institute [COBSETI]
 
 The Corporation Bank Self Employment Training Institute [COBSETI]
 established at Chikmagalur in 1996 is an institute sponsored by the
 Bank to cater to the training needs of the rural unemployed youth
 hailing from the districts of Chikmagalur and Kodagu where the Bank has
 the Lead Bank responsibility. The training is imparted free of cost
 with free boarding and lodging to the trainees. Since inception till
 31.03.2011, the Institute has conducted 600 training programmes and
 trained 18650 candidates, of which 8521 candidates under Skill
 Development/regular programme and 10129 under Govt. sponsored
 programmes like SHG, SGSY, PMRY etc. Out of 8521 candidates under Skill
 development, 5705 have become self-employed/ settled, indicating a
 success rate of 67%. Out of 18650 candidates, 12744 are women, 1351 are
 from minority communities and 3526 belong to SC/ST communities. The
 process of establishment of one more COBSETI in Kodagu district is
 under progress for which the Government of Karnataka has handed over
 0.85 acre of land near Kushalnagar.
 
 13.5 Corporation Bank Economic Development Foundation
 
 The Corporation Bank Economic Development Foundation ® was launched in
 the year 1992 as a non-profit economic outfit of the Bank and continues
 to fulfill its social obligation. Financial grants to the extent of
 Rs.7.04 lakh were disbursed during the year for execution of various
 projects of social concerns. The areas of assistance during the
 financial year included providing infrastructure facilities such as
 clean drinking water, health and sanitary to schools, class rooms,
 computers, furniture, midday meal projects at various schools etc.
 
 14.  Progressive use of Official Language:
 
 The Bank ensures compliance of the directives of Government of India
 and RBI with regard to Hindi, as Official Language implementation.
 
 For improving use of Hindi in official correspondences, Hindi Unicode
 fonts are activated in computers and trainings are imparted to staff
 members to enable them to make its regular usage. Hindi workshops and
 trainings are also conducted on a regular basis for the benefit of its
 staff members.
 
 As convener of the Town official Language Implementation Committee
 (TOLIC), Mangalore, the Bank has conducted Workshops for Executives and
 Translation Training Workshops etc. The Bank is also the convener of
 the Official Language Committee of South Based Public Sector Banks.
 
 The Bank has received various awards and accolades from Government of
 India and Reserve Bank of India for Official Language Implementation.
 The Banks quarterly Hindi house magazine Mangala received award
 under RBIs Inter Bank House Magazine competition.
 
 15.  Performance of Subsidiaries and other units sponsored by the Bank
 
 15.1 Corp Bank Securities Limited
 
 The Banks wholly owned subsidiary, Corp Bank Securities Limited (CBSL)
 has earned a total income of Rs.10.26 crore, posted Profit Before Tax of
 Rs.9.74 crore and Profit After Tax of Rs.6.79 crore (after write off of
 deferred tax asset of Rs.2.47 crore) for FY 2010-11, while the
 corresponding figures for FY 2009-10 were Rs.9.40 crore, Rs.9.20 crore and
 Rs.10.99 crore (after creation of deferred tax asset of Rs.2.37 crore)
 respectively. The Paid up Equity Share Capital remained at Rs.75 crore as
 on 31.3.11, while the tangible net worth, after plough back of surplus,
 has gone up to Rs.100.71 crore. The Earning per Share for fiscal ended
 March, 2011 was Rs.0.91 on account of deferred tax write off, while it
 was Rs.1.47 for fiscal ended March 2010. The Company has secured
 requisite regulatory approvals for undertaking Equity Broking business
 and the enablement process with National Stock Exchange of India Ltd.,
 (NSE) is taken forward. The Company has plans to undertake loan/ debt
 syndication business subject to getting requisite regulatory approvals.
 
 15.2 Chikmagalur-Kodagu Grameena Bank [CHIKO Bank] The
 Chikmagalur-Kodagu Grameena Bank, a Regional Rural Bank [RRB] sponsored
 by the Bank and established on 28.04.1984 has 53 branches. The deposits
 of the Bank stood at Rs.354.34 crore and advances at -231.59 crore [gross
 advances] as at 31.03.2011. The Bank has posted a net profit of Rs.0.63
 crore as at the year- ended 31.03.2011. The Bank has become 100% CBS
 compliant during the year.
 
 16.  Constitution of Board of Directors
 
 16.1 The following changes have taken place in the Board of Directors
 of the Bank during the year ended 31st March, 2011.
 
 16.2 Shri Ramnath Pradeep was appointed by the Central Government as
 Chairman and Managing Director of the Bank. He assumed office on 1st
 September 2010.
 
 16.3 Shri. Ashwani Kumar was appointed by the Central
 
 Government as Executive Director of the Bank. He assumed office on 1st
 December, 2010.
 
 16.4 The following members of the board retired from the Board of the
 Bank during the period:
 
 - Shri M. A. Srinivasan retired effective from 30.07.2010.
 
 - Shri J. M. Garg retired on 31.07.2010.
 
 - Shri Asit Pal retired on 30.11.2010.
 
 - Shri Satish Goel retired on 06.12.2010
 
 16.5 The Board places on record its appreciation for the guidance and
 counsel received from Shri MA. Srinivasan , Shri J. M. Garg, Shri Asit
 Pal and Shri Satish Goel during deliberations of the Board/Committees
 of the Board and also in the conduct of the Banks business during their
 tenure of office as Directors of the Bank.
 
 17.  Directors Responsibility Statements
 
 The Directors confirm that in the preparation of the Annual Accounts
 for the year ended 31st March, 2011:
 
 17.1 The applicable Accounting Standards have been followed along with
 proper explanation relating to material departures, if any.
 
 17.2 The Accounting Policies framed in accordance with the guidelines
 of the Reserve Bank of India, were consistently applied.
 
 17.3 Reasonable and prudent judgment 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 on 31st March, 2011.
 
 17.4 Proper and suffcient care was taken for the maintenance of
 adequate Accounting Records in accordance with the provisions of
 applicable laws Governing Banks in India and the accounts have been
 prepared on a going concern basis.
 
 18.  Acknowledgements
 
 18.1 The Directors thank the valued customers, shareholders,
 well-wishers and correspondents of the Bank in India and abroad for
 their goodwill, patronage and support.
 
 18.2 The Directors acknowledge with gratitude the valuable and timely
 advice, guidance and support received from
 
 Reserve Bank of India, Securities and Exchange Board of India (SEBI),
 BSE,NSE, NSDL, CDSL, various State Governments, Financial Institutions
 and the Statutory Central Auditors of the Bank in the functioning of
 the Bank.
 
 18.3 The Directors place on record their deep appreciation of the
 valuable contribution of the members of the staff at all levels for the
 consistent growth of the Bank which took the Bank to a greater height
 during the year and look forward to their continued co-operation in
 realisation of the corporate goals in the years ahead.
 
                             For and on behalf of the Board of Directors
 
 Place : Mangalore                                     (Ramnath Pradeep)
 
 Date :  01-06-2011                         Chairman & Managing Director