To The Members,
 
 The Directors have immense pleasure in presenting the Bank''s Annual
 Report along with the Audited Statement of Accounts and the Cash Flow
 statement for the year ended 31st March 2013.
 
 FINANCIAL HIGHLIGHTS
 
 The major highlights of your Bank''s performance are as follows:
 
 - Global Business of the Bank reached Rs. 249,136 crore during the
 year 2012-13, registering a growth of 17.52 per cent.
 
 - Total Deposits grew by Rs. 21,176 crore or 17.53 per cent to Rs.
 141,980 crore during the year.
 
 - Gross Advances at Rs. 107,156 crore, registered an increase of Rs.
 15,972 crore (17.52 per cent) as on 31.03.2013. Overall Credit Deposit
 ratio was at 75.47 per cent.
 
 - Priority Sector Advances at Rs. 36,421 crore, grew by Rs. 6,394
 crore (21.3 per cent) as on 31.03.2013.
 
 - Agriculture Credit grew by Rs. 3,646 crore (27.3 per cent) to Rs.
 17,001 crore and accounted for 19.65 per cent of Adjusted Net Bank
 Credit.
 
 - In accordance with the priorities accorded by the Government of
 India, the Bank''s Advances to SC/ST reached Rs. 2,644 crore as of 31st
 March 2013, constituting 7.3 per cent of total Priority Sector
 advances.
 
 - Personal loans at Rs. 15,439 crore, grew by Rs. 2,328 crore as on
 31.03.2013.
 
 - Net Interest Margin was maintained consistently above the 3 per
 cent mark at 3.09 per cent.
 
 - Operating profit was at Rs. 3061 crore while Net profit for 2012-13
 was at Rs. 1581 crore.
 
 - Return on average assets was at 1.02 per cent.
 
 - Capital Adequacy Ratio was at 13.08 per cent as compared to 13.47
 per cent as of March 2012.
 
 - Return on Net worth for FY 2012-13 was at 14.89 per cent as against
 18.73 per cent for FY 2011-12.
 
 - Earning per share were at Rs. 35.80 and Book value per share was at
 Rs. 242.89 during the current year.
 
 - The Bank scaled new heights in the recovery of NPA.  During FY
 2012-13, total recovery of NPA (including AUC) amounted to Rs. 653
 crore as against Rs. 466 crore in the previous year.
 
 - Gross NPA was at 3.33 per cent and Net NPA was at 2.26 per cent for
 March 2013.
 
 - Total domestic branch network of the Bank in India increased to
 2089 as on 31.03.2013 and all the branches are under CBS. Besides, the
 Bank has 3 overseas branches.
 
 - Total number of ATMs increased to 1322, which included 359 offsite
 ATMs and customers can access more than 110,000 ATMs in the shared
 network.
 
 INCOME AND EXPENDITURE
 
 - During the year, total income of the Bank increased to Rs. 15181
 crore with interest income of Rs. 13893 crore or 91.5 per cent.
 
 - Net interest income at Rs. 4524 crore, registered a growth of 2.4
 per cent.
 
 - On the Expenditure side, the Bank''s interest expenditure was at Rs.
 9368 crore, an increase of Rs. 1555 crore or 19.9 per cent.
 
 - Total operating expenses at Rs. 2751 crore for 2012-13 has shown an
 increase of Rs. 564 crore or 25.8 per cent, when compared to Rs. 2187
 crore in FY 2011-12.
 
 The income and expenditure for the period 2012-13 are as under:
 
                                                         (Rs. in crore)
 
 Particulars                      2012-13     2011-12   Absolute   %
                                                        Growth    Growth
 
 Total Interest Income           13892.64    12231.32   1661.32    13.6
 
 Total Interest Expenditure       9368.37     7813.32   1555.05    19.9
 
 Net Interest Income              4524.27     4418.00    106.27     2.4
 
 Net Operating Income             5812.21     5650.16    162.05     2.9
 
 Operating Expenses               2750.86     2187.00    563.86    25.8
 
 Operating Profit                 3061.35     3463.17   -401.82   -11.6
 
 Provisions & Contingencies       1480.21     1716.20   -235.99   -13.8 
 incl. depreciation on 
 account of transfer of 
 securities to HTM category
 
 Net Profit                       1581.14     1746.97   -165.83    -9.5
 
 IMPORTANT RATIOS
 
                                                    (in per cent)
 
 Parameters                                  2012-13     2011-12
 
 Yield on Advances                            11.03       11.28
 
 Return on Investment                          7.41        7.29
 
 Cost of Deposits                              7.07        6.68
 
 Return on Assets                              1.02        1.31
 
 Cost to Income ratio                         47.33       38.71
 
 Business per employee (Rs. in lakh)        1300.98     1114.23
 
 Profit per employee (Rs. in lakh)             8.38        9.30
 
 DIVIDEND
 
 - The Board of Directors has recommended a dividend of 66 per cent
 for FY 2012-13. The dividend for FY 2012-13 shall be subject to tax on
 dividend to be paid by the Bank.  The total outflow on account of
 dividend for FY2012-13 is Rs. 283.65 crore excluding dividend tax. The
 payout ratio works out to 20.25 per cent.
 
 NET WORTH AND CRAR
 
 - Net worth of the Bank improved to Rs. 10838.84 crore as on
 31.03.2013 from Rs. 9637.41 crore as on 31.03.2012, registering a
 growth of 12.47 per cent.
 
 - As per Basel 11 norms, the Capital to Risk weighted Assets Ratio
 (CRAR) was at 13.08 per cent as of March 2013, compared to 13.47 per
 cent as of March 2012, against the requirement of 9 per cent.
 
 - The CRAR of Tier I capital was 10.88 per cent as of March 2013 as
 against 11.13 per cent as of March 2012.
 
                                   (in per cent)
 
                               As on
 
                        March 2013    March 2012 
 
 Tier-I Capital             10.88         11.13
 
 Tier-II Capital             2.20          2.34
 
 Total                      13.08         13.47
 
 - As per Government guidelines, during the process of direct
 recruitment and internal promotions, pre-recruitment and pre-promotion
 trainings were offered to SC/ST employees.
 
 CHANGES INTHE BOARD DURINGTHEYEAR
 
 Dr. Rajat Bhargava was appointed as Government of India nominee to the
 Board on December 6, 2012 in place of Shri Shaktikanta Das who ceased
 to be Director from December 5, 2012.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 The Directors'' confirm that in the preparation of the annual accounts
 for the year ended March 31, 2013 -
 
 - The applicable accounting standards have been followed along with
 proper explanation relating to material departures, if any;
 
 - The accounting policies framed in accordance with the guidelines of
 the Reserve Bank of India, were consistently applied;
 
 - 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 March 31, 2013.
 
 - Proper and sufficient care were 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.
 
 ACKNOWLEDGEMENT
 
 The Board expresses its deep sense of gratitude to the Government of
 India, Reserve Bank of India and Securities & Exchange Board of India
 for the valuable guidance and support received from them. The Board
 also thanks the financial institutions and correspondent banks for
 their co-operation and support. The Board acknowledges the unstinted
 support of its customers and shareholders.
 
 The Board places on record its appreciation of the valuable
 contribution made by Shri.Shaktikanta Das who ceased to be a member
 during the year.
 
 The Board places 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 Board of Directors 
 
                                   CHAIRMAN AND MANAGING DIRECTOR