1.  The Board of Directors have pleasure in presenting the Annual
 Report along with the Audited Financial Statement of Accounts and the
 Cash Flow statement of the Bank for the year ended March 31, 2011.
 
 2. Performance Highlights
 
 2.1 Aggregate Business Mix (Deposits + Advances) of the Bank crossed
 the Milestone Mark of Rs. 1,00,000 Crore during the financial year
 ended 31st March, 2011. The total Business Mix of the Bank increased by
 Rs. 22,306.30 Crore to Rs. 1,09,372.99 Crore as on 31 March, 2011 from
 Rs. 87,066.69 Crore as on 31st March 2010, registering a growth of
 25.62% .
 
 2.2 Total Deposit of the Bank increased by Rs. 12,865.34 Crore from Rs.
 51,344.28 Crore as on 31st March, 2010 to Rs. 64,209.62 Crore as on
 31st March, 2011, registering a growth of 25.05%.
 
 2.3 Advances of the Bank increased by Rs. 9,441.96 Crore from Rs.
 35,721.41 Crore as on 31st March, 2010 to ? 45,163.37 Crore as on 31st
 March, 2011, registering a growth of 26.42%.
 
 2.4 Micro, Small and Medium Enterprises (MSME) Credit posted a growth
 of Rs. 1,136.32 Crore from Rs. 5,647.37 Crore as on 31st March, 2010 to
 Rs. 6,783.69 Crore as on 31st March, 2011, registering a growth of
 20.12%.
 
 2.5 Retail Credit posted a growth of Rs. 755.68 from Rs. 5,379.91 Crore
 as on 31st March, 2010 to Rs. 6,135.59 Crore as on 31st March, 2011,
 registering a growth of 14.05%.
 
 2.6 Recovery efforts in NPA Accounts of the Bank yielded good results.
 Cash recovery during the year 2010-11 stood at Rs. 191.05 Crore and
 upgradation to the tune of Rs. 171.12 Crore. The Bank recorded an all
 time high recovery in written off accounts during the year at Rs.
 134.58 Crore as against Rs. 125.54 Crore recorded during the previous
 year.
 
                                                     (Amt in Rs. Crore)
 Particulars                         As of March 2010  As of March 2011
 
 Deposits                                51,344.28         64,209.62
 
 Advances                                35,721.41         45,163.37
 
 Investments                             15,760.14         18,860.22
 
 Priority Sector                         11,718.00         15,150.00
 
 Agriculture                              4,826.22          6,389.38
 
 Retail                                   5,379.91          6,135.59
 
 MSME                                     5,647.36          6,783.69
 
 Gross NPA                                  641.99            842.24
 
 Net NPA                                    427.53            548.95
 
 % of Gross NPA to Gross Advances             1.80              1.86
 
 % of Net NPA to Net Advances                 1.21              1.22
 
 Capital Adequacy Ratio                      12.77             13.41
 
 
 3. Income Analysis
 
 3.1 The Operating Profit of the Bank increased to Rs. 1223.79 Crore for
 the year from Rs.  840.58 Crore in the previous year registering an
 increase of Rs. 383.21 Crore (45.59%).
 
 3.2 The Net Profit increased to Rs. 611.63 Crore for the year from Rs.
 511.25 Crore in the previous year recording an increase of Rs. 100.38
 Crore (19.63%).
 
 The financial performance of the Bank for the year 2010-2011 is
 summarized below                      
                                                     (Amt in Rs. Crore)
 
 Particulars                                 As of March    As of March
                                                 2010           2011
 
 Operating Profit                                840.58        1223.79
 
 Interest Income                               4,010.36       5,033.53
 
 Interest Expenditure                          2,910.33       3,270.16
 
 Net Interest Income                           1,100.03       1,763.37
 
 Non Interest Income                             588.63         533.84
 
 Provisions and contingencies                    329.32         325.20
 
 Profit before Tax                               686.79         898.59
 
 Provision for Taxes                             175.54         286.96
 
 Net Profit                                      511.25         611.63
 
 
 4. Key Financial Indicators
 
 Some of the Key Financial ratios are presented below:
 
                                                    (Amt in Rs. Crores)
 
 Particulars                                As on March     As on March
                                                 2010           2011
 
 Net Interest Margin                             2.61           3.17
 
 Return on Assets                                1.01           1.00
 
 Cost to Income Ratio                           50.22          46.73
 
 CRAR under Basel II                            12.77          13.41
 
 NPA Coverage Ratio (Prov) As per new RBI 
 guideliness                                    78.61          74.62
 
 Cost of Deposit                                 6.21           5.76
 
 Cost of Funds                                   6.31           5.87
 
 Yield on Advance                               10.32          10.24
 
 Yield on Fund                                   8.47           8.62
 
 Return on Equity                               23.55          26.71
 
 Earning Per Share                              17.83          21.26
 
 Book Value                                     84.04         123.85
 
 
 5. During the year 2010-11, the Bank opened 68 new Branches and Branch
 network of the Bank increased to 1291. All the branches of the Bank are
 covered under CBS.
 
 6. The ATM Network of the Bank increased to 496, it includes 105
 offsite ATMs. Banks customers have access to 70,000 ATMs in the shared
 network, 4.70 Lacs plus Merchant Establishments (MEs) in India. World
 wide, our customers have access to more than 1 million ATMs and 26
 million MEs.
 
 7. Dividend
 
 The Board of Directors are pleased to recommend dividend of Rs. 2.20
 per share i.e., 22 % for 2010-11. The tax on dividend will be paid by
 the Bank. The total outflow on account of dividend wilt be Rs. 85.53
 Crore (including dividend tax).
 
 8. Net Worth and CRAR
 
 8.1 Net Worth of the Bank improved to Rs. 3,366.43 crore as on
 31.03.2011 from Rs. 2,201.64 crore as on 31.03.2010, registering a
 growth of Rs. 1,164.79 Crore (52.91%).
 
 8.2 Capital to Risk (Weighted) Asset Ratio (CRAR) as of March 2011
 works out to 13.41% as compared to 12.77% as of March 2010.
 
 8.3 During the year, the Bank allotted 4.65 Crore Equity Shares of face
 value of Rs.10/- at a price of Rs. 115.75 (including premium of Rs.
 105.75) aggregating Rs. 539 crore to the Government of India on
 preferential basis. With the above allotment, Government of India
 holding in the Bank stands enhanced to 58.01% from 51.19%.
 
 8.4 The Tier I capital of the Bank under Basel II is improved to 9.77%
 as against 8.16% as of March 2010.
 
                           Basel I               Basel II
                      March      March       March     March
                      2010       2011        2010      2011
 
 Tier- I Capital      6.80       8.04         8.16     9.77
 
 Tier -II Capital     3.85       3.00         4.61     3.64
 
 Total               10.65      11.04        12.77    13.41
 
 
 9. Changes in Board of Directors
 
 9.1 The Board of Directors of the Bank, as on 31st March 2011,
 comprised of Chairman & Managing Director and Executive Director, both
 being whole-time Directors and six other directors as under:
 
 - One Government of India Nominee Director
 
 - One Reserve Bank of India Nominee Director
 
 - One Officer Employee Director and
 
 - Three Shareholders elected Directors
 
 9.2 Shri Chandra Kishore, Reserve Bank of India Nominee Director,
 appointed under Clause (c) of Sub-section (3) of Section 9 of the
 Banking Companies (Acquisition and Transfer
 
 of Undertakings) Act, 1970/1980 (as amended vide Banking Companies
 (Acquisition and Transfer Undertakings) and Financial Institutions Laws
 (Amendment) Act, 2006 read with Sub-clause (1) of Clause 3 of
 Nationalized Banks (Management and Miscellaneous Provisions) Scheme
 1970/1980 w.e.f. February 27, 2007, ceased to be a Director of the Bank
 w.e.f. July 29, 2010. The Board of Directors place on record their
 appreciation for valuable guidance provided by Shri Chandra Kishore,
 during his tenure as Director on the Board of the Bank.
 
 9.3 In terms of Notification No. F.No.9/2/2007-B.O.I. dated 30th July,
 2010 received from Government of India, Ministry of Finance, *
 Department of Financial Services, Shri B. P. Vijayendra has been
 nominated as Director on the Board of the Bank under Clause (c),
 Sub-Section (3) of Section 9 of the Banking Companies (Acquisition and
 Transfer of Undertakings) Act, 1970/1980 read with sub-clause (1) of
 clause 3 of Nationalised Banks (Management & Miscellaneous Provisions)
 Scheme, 1970/1980, in place of Shri Chandra Kishore.
 
 9.4 Dr. Kamlesh Kumar Goel, Director, appointed under Clause (h) of
 Sub-section (3) of Section 9 of the Banking Companies (Acquisition and
 Transfer of Undertakings) Act, 1970 w.e.f. February 4,2009, ceased to
 be a Director of the Bank from February 3,2011 on completion of his
 tenure. The Board of Directors place on record their appreciation for
 valuable guidance provided by Dr. Goel, during his tenure as Director
 on the Board of the Bank.
 
 10. Directors Responsibility Statement
 
 The Directors, in preparation of the annual accounts for the year ended
 March 31, 2011, confirm the following:
 
 i) That in the preparation of the annual accounts, the applicable
 standards have been followed along with proper explanation relating to
 material departures.
 
 ii) That they have selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent 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 or loss of the
 Bank during the period.
 
 iii) That they have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of applicable laws governing banks in India for preventing
 and detecting frauds and other irregularities.
 
 iv) That they have prepared the annual accounts on a going concern
 basis.
 
 11. Acknowledgments
 
 11.1 The Board of Directors expresses its patronage and sincere thanks
 to the Banks valued customers, shareholders and well wishers for their
 valuable contribution towards the progress of the Bank and seek their
 continued support and co-operation in future.
 
 11.2 The Board of Directors acknowledges with gratitude, the timely
 advice, valuable guidance and support received from Government of India
 and Reserve Bank of India.
 
 11.3 The Board of Directors express special thanks to Government of
 India for infusing capital ? 539 crore and thus enabling bank to
 maintain a Tier I CRAR, as on 31st March, 2011, above the prescribed
 benchmark.
 
 11.4 The Board of Directors are also thankful to the Financial
 Institutions / Banks and Correspondents for their cooperation and
 support to the Bank.
 
 11.5 The Board of Directors wish to place on record, the deep
 appreciation of the valuable contribution made by the staff, at all
 levels, for the progress achieved in Banks business. The Directors
 look forward to their continued cooperation in faster business
 development and progress of the Bank.
 
 
 
                             For and on behalf of Board of Directors
 
                                                       (D. L. Rawal)
                                        Chairman & Managing Director
 
 
 Place : Mumbai 
 Date  : 01.06.2011