a. Description of Contingent Liabilities
 
 Sr. Contingent Liability (*)    Brief Description
 No.
 
 1.  Claim against the Bank not 
     acknowledged as Debts.      An amount of Rs. 123.06 Crore is
                                 outstanding as at 31/03/2011, as 
                                 claims against the Bank not
                                 acknowledged as Debts, including 
                                 Rs. 109.13 Crore being in the nature
                                 of a contingent liability on
                                 account of proceedings pending with 
                                 Income Tax authorities. Of this, 
                                 claims amounting to Rs. 17.93
                                 Crore, for which relief was granted 
                                 to the Bank, has been appealed 
                                 against by the Income Tax Department. 
                                 The Bank does not expect the outcome 
                                 of these proceedings to have a
                                 materially adverse effect on its 
                                 financial results.
 
 2. Liability on account of 
    outstanding forward          The Bank enters into foreign
                                 exchange contracts on its own account
                                 and for customers and
 exchange and derivative 
 contracts                       currency options/swaps on a pure 
                                 hedge basis. The Bank also enters 
                                 into Interest rates swaps on
                                 its own account. Forward exchange 
                                 contracts are commitments to buy or 
                                 sell foreign currency at a future date 
                                 at the contracted rate. Currency swaps
                                 are commitments to exchange cash flows
                                 by way of interest/principal in two 
                                 currencies, based on ruling spot 
                                 rates. Interest rate swaps are
                                 commitments to exchange fixed and 
                                 floating interest rate cash flows. 
                                 A foreign currency option is an 
                                 agreement between two parties in 
                                 which one grants to the other the 
                                 right to buy or sell a specified 
                                 amount of currency at a specificprice 
                                 within a specified time period or at 
                                 a specified future time.
 
 3. Guarantees given on behalf 
    of constituents,             As a part of its commercial banking
                                 activities, the Bank issues Letters
                                 of Credit and
 Acceptances, Endorsements and 
 Others                          Guarantees on behalf of its customers.
 
 4. Other items for which the 
 Bank is contingently liable.   These include purchase and sale of 
                                securities on trade date basis where 
                                the settlement is guaranteed by the 
                                Clearing corporation of India Limited/
                                Stock Holding Corporation of India
                                 Limited.
 
 *Also refer Schedule – 12.
 
 10.2 Floating Provisions
 
 There are no floating provisions during the year ended March 31, 2011 or
 in the previous financial year.
 
 10.3 Provisioning Coverage Ratio
 
 In accordance with RBI circular, the Banks Provision Coverage Ratio at
 March 31, 2011 is 87.64% (previous year: 70.04%).
 
 10.6 Letters Of Comfort
 
 The Bank has issued letters of comfort to other banks. Outstanding
 letters of comfort as on March 31, 2011 aggregate to Rs. 266.83 Crore
 (previous year: Rs. 23.02 Crore). In the Banks assessment no financial
 impact is likely to arise.
 
 11 OTHER MATTERS
 
 11.2 Disclosure of penalties imposed by RBI
 
 No penalties have been imposed by the RBI on the Bank during the year
 ended March 31, 2011 as well as in the previous financial year.
 
 11.3 Revaluation of Fixed Assets
 
 The Bank revalued its owned premises as at March 2009 which resulted in
 a revaluation gain of Rs. 52.02 Crore which was credited to Revaluation
 Reserve as at that date. The Bank computes depreciation on such
 revalued premises over its estimated remaining useful life and
 accordingly an amount of Rs. 2.50 Crore has been accounted as
 depreciation and reduced from the Revaluation Reserve for the year
 ended March 31, 2011.
 
 13 DRAW DOWN FROM RESERVES
 
 The Bank has not undertaken any draw down of reserves during the year
 ended March 31, 2011.
 
 14 During the financial year 2009-10 the Bank issued 23,725,835 shares
 to Qualifed Institutional Investors @ Rs. 34.14 per share. Net of issue
 costs, this resulted in an increase of Rs. 23.73 Crore in Share Capital
 and Rs. 54.61 Crore in Share Premium Account.
 
 In connection with the QIP issue, the Bank has incurred share issue
 expenses aggregating to Rs. 2.66 Crore. It includes expenses related to
 commission & brokerage which is higher than the limit prescribed under
 Section 13 of the Banking Regulation Act, 1949. In this connection, the
 Bank has written to the Reserve Bank of India seeking its approval,
 which is awaited. The Bank has utilized the share premium account for
 meeting the said share issue expenses.
 
 15 Net overnight open position outstanding as on March 31, 2011 is Rs.
 1.44 Crore (Previous year Rs. 0.40 Crore).
 
 16 Previous years figures have been regrouped / reclassified, wherever
 considered necessary, in order to make them comparable with figures for
 the current year.
 
 17 These are the Notes appended to and forming part of the Financial
 Statements for the year ended March 31, 2011.