IDBI Bank

We have audited the attached Balance Sheet of the IDBI Bank Limited
 (the Bank) as at March 31, 2009, as also the Profit and Loss Account
 and the Cash Flow Statement of the Bank for the year ended on that date
 annexed thereto.
 
 These financial statements are the responsibility of the Banks
 management. Our responsibility is to express an opinion on these
 financial statements based on our audit. We conducted our audit in
 accordance with the auditing standards generally accepted in India.
 Those standards require that we plan and perform the audit to obtain
 reasonable assurance about whether the financial statements are free of
 material misstatement. An audit includes examining, on a test basis,
 evidence supporting the amounts and disclosures in the financial
 statements.  An audit also includes assessing the accounting principles
 used and significant estimates made by the management, as well as
 evaluating the overall financial statement presentation. We believe
 that our audit provides a reasonable basis for our opinion.
 
 The Balance Sheet and Profit and Loss Account have been drawn up in
 accordance with the provisions of Section 29 of the Banking Regulation
 Act, 1949 read with Section 211 of the Companies Act, 1956.
 
 We report that
 
 1.  We have obtained all the information and explanations, which, to
 the best of our knowledge and belief, were necessary for the purposes
 of our audit and have found them to be satisfactory.
 
 2.  The transactions of the Bank which have come to our notice have
 been within the powers of the Bank.
 
 3.  The returns received from the offices and branches of the Bank have
 been found adequate for the purposes of our audit.
 
 4.  In our opinion, proper books of account as required by law have
 been kept by the Bank so far as appears from our examination of those
 books and proper returns adequate for the purpose of our audit have
 been received from offices and branched not visited by us.
 
 5.  The Banks Balance Sheet, Profit and Loss Account and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account and the returns.
 
 6.  The provisions of Section 274(1 )(g) of the Companies Act, 1956 are
 not applicable in terms of Notification No. G.S.R.829 (E) dated-
 October 21, 2003 issued by Department of Company Affairs, Government of
 India
 
 7.  The Bank is restructuring an advance to a large public sector power
 project in Maharashtra, where the Banks exposure is Rs.2599 Crore.
 The Government of India and the Bank have sought special regulatory
 treatment from Reserve Bank of India (RBI) for considering the asset as
 Standard and for exemption from provisioning requirements. Pending
 receipt of such special regulatory treatment from RBI, the Bank has
 classified the asset as Standard and not made provision, amount whereof
 has not been ascertained. Refer Note No.16 of Schedule 18 - Notes
 forming part of the Accounts.
 
 8.  Subject to Paragraph 7 above,
 
 I. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
 Flow Statement dealt with by this report comply with the Accounting
 Standards referred to in sub- section 3(C) of Section 211 of the
 Companies Act, 1956 read with guidelines issued by the Reserve Bank of
 India in so far as they apply to the Bank.
 
 II. In our opinion and to the best of our information and according to
 the explanations given to us, the said financial statements give the
 information required by the Banking Regulation Act, 1949 as well as the
 Companies Act, 1956 in the manner so required for banking companies and
 give a true and fair view in conformity with the accounting principles
 generally accepted in India.
 
 a) In the case of the Balance Sheet, of the state of affairs of the
 Bank as on March 31,2009
 
 b) In the case of the Profit and Loss Account, the same shows a true
 balance of Profit for the year ended March 31, 2009 covered by such
 accounts; and
 
 c) In the case of the Cash Flow Statement, of the cash flows for the
 year ended March 31, 2009.
 
 For Khimji Kunverji & Co       For Suresh Chandra & Associates
 
 Chartered Accountants                    Chartered Accountants          
 Shivji K Vikamsey                                    S C Gupta
 Partner                                                Partner
 Membership No. 2242                       Membership No. 16534           
 
 Mumbai                               
 April 24, 2009