1) Capital Adequacy Ratio:
 
 The Bank computes Capital Adequacy Ratio as per RBI guidelines. The
 Bank has migrated to the New Capital Adequacy Framework (Basel II) with
 effect from March 31, 2009. Under the Basel II guidelines, the Bank is
 required to maintain Capital to Risk weighted Assets Ratio, at a
 minimum of 9% on an on-going basis, covering credit risk, market risk
 and operational risk. Further, the minimum capital to be maintained by
 the Bank is subjected to a prudential floor which is the higher of :
 
 i) Minimum capital to be maintained under the New Capital Adequacy
 Framework (Basel II); and
 
 ii) 80% of the minimum capital to be maintained under Basel I
 guidelines
 
 Note:
 
 (1) Does not include amount of securities pledged with Central Counter
 Parties such as Clearing Corporation of India Ltd., National Securities
 Clearing Corporation of India Ltd, and Multi Commodity Exchange of
 India Ltd.
 
 (2) Excludes investment in RIDF scheme of NABARD and equity shares.
 
 (3) Excludes investment in RIDF scheme of NABARD, commercial papers,
 CD''s and preference shares acquired by way of conversion of debts.
 
 (4) Includes investment in RIDF scheme of NABARD.
 
 (5) Amounts reported under 4, 5, 6 and 7 are not mutually exclusive.
 
 Note:
 
 (1) Does not include amount of securities pledged with Central Counter
 Parties such as Clearing Corporation of India Ltd., National Securities
 Clearing Corporation of India Ltd. and Multi Commodity Exchange of
 India Ltd.
 
 (2) Excludes investment in RIDF scheme of NABARD and equity shares
 
 (3) Excludes investment in RIDF scheme of NABARD
 
 (4) Includes investment in RIDF scheme of NABARD
 
 (5) Amounts reported under 4, 5, 6 and 7 are not mutually exclusive.
 
 2.1 During the year, the value of sales and transfer of securities to /
 from HTM category, excluding one-time transfer of securities from HTM
 and sale on account of Open Market Operation (OMO), has not exceeded 5%
 of the book value of investments held in HTM category at the beginning
 of the year. As such, in line with RBI guidelines, specific disclosures
 on book value, market value, and provisions if any, relating to such
 sale and transfers are not made.
 
 3.1 Exchange Traded Interest Rate Derivatives:
 
 The Bank has not undertaken any exchange traded interest rate
 derivative transactions during the year (previous year Nil).
 
 3.2 Disclosures on Risk Exposure in Derivatives
 
 The Risk Management Department of the Bank is responsible for
 measuring, reporting and monitoring risk arising from derivatives
 transactions. It functions independent of Treasury business and
 undertakes the following activities:
 
 - Monitors daily derivatives operations against prescribed policies and
 limits;
 
 - Reviews daily product-wise profitability and activity reports for
 derivatives operations;
 
 - Submits MIS and details of exceptions to the Top Management on a
 daily basis; and
 
 - Ensures monitoring effectiveness of derivative deals identified as
 hedges against the terms of the hedging instruments and underlying
 hedged risk.
 
 The Risk Management function applies a host of quantitative tools and
 methods such as Value at Risk, PV01, stop-loss limits, counterparty
 limits, deal size limits and overnight position limits.
 
 The Bank undertakes derivative transactions for hedging customers''
 exposure, hedging the Bank''s own exposure, as well as for trading
 purposes, wherever permitted by RBI. The customers use these derivative
 products to hedge their forex and interest rate exposures; all trades
 with customers are covered back to back with other market makers.
 
 The Derivatives Policy approved by Board of Directors defines the
 framework for carrying out derivatives business and lays down policies
 and processes to measure, monitor and report risk arising from
 derivative transactions.  The policy provides for (a) appropriate risk
 limits for different derivative products and (b) authority levels for
 review of limit breaches and to take appropriate actions in such
 events. As part of the Derivatives Policy, the Bank has a Product
 Suitability and Customer Appropriateness Policy, which is used to
 classify its customers on the basis of their need for various
 derivative products as well as their competence in understanding such
 products and the attendant risks involved.
 
 Note 1: Based on the PV01 of the outstanding derivatives as at March
 31, 2012.
 
 Note 2: Based on the absolute value of PV01 of the derivatives
 outstanding during the year. Derivative contracts that are
 back-to-back have not been included herein.
 
 Note 3: Mark to Market positions above includes interest accrued on the
 swaps.
 
 Note 4: There were no outstanding currency futures as on March 31,
 2012.
 
 Note 5: As on March 31, 2012, Marked to Market receivable is Rs 481.45
 crores and Marked to Market payable is Rs 307.22 crores in respect of
 Currency derivatives. In respect of Interest rate derivatives, Marked
 to Market receivable is Rs 163.47 crores and Marked to Market payable is
 Rs 147.96 crores.
 
 Foreign Currency exposure not hedged by derivative instruments (Net
 Open Position) as on March 31, 2012 is Rs (44.73) crores (previous year
 Rs (5.69) crores).
 
 4.1 During the year, there has been no purchase / sale of
 non-performing financial assets from / to other banks (previous year
 Nil).
 
 4.2 During the year, there was no securitization transaction pertaining
 to Standard Advances (previous year Nil).
 
 Note:
 
 (1) Working funds are reckoned as the average of total assets as per
 the monthly returns in Form X filed with RBI during the year.
 
 (2) Business per employee (deposits plus gross advances) is computed
 after excluding Inter-bank deposits.
 
 (3) Returns on Assets are computed with reference to average working
 funds.
 
 (1) As per RBI circular RPCD.CO.Plan.BC.69/04.09.01/2010-11 dated
 09/05/2011, limit for housing loan under priority sector has been
 changed from Rs 20 lacs to Rs 25 lacs
 
 (2) Does not include corporate lending backed by mortgage of land and
 building.
 
 5.1 Single borrower limit and Group Borrower Limit:
 
 During the year, the Bank has not exceeded the prudential credit
 exposure limit in respect of Single Borrower and Group Borrowers
 (previous year Nil).
 
 5.2 Unsecured advances:
 
 The Bank has not extended any project advances where the collateral is
 an intangible asset such as a charge over rights, licences,
 authorizations etc. As such, the Unsecured Advances of Rs 2853.82 crores
 (previous year Rs 3714.29 crores) as given in Schedule 9B (iii) are
 without any collateral or security.
 
 6.1 Disclosure of penalties imposed by RBI:
 
 RBI has not imposed any penalty on the Bank u/s 46(4) of the Banking
 Regulation Act, 1949 (previous year Nil).
 
 6.2 Fixed Assets:
 
 Cost of premises includes Rs 4.09 crores (previous year Rs 4.09 crores)
 in respect of properties for which execution of documents and
 registration formalities are in progress. Of these properties, the Bank
 has not obtained full possession of one property having WDV of Rs 1.74
 crores (previous year Rs 1.78 crores) and has filed a suit for the same.
 
 6.3 Contingent Liabilities:
 
 Claims against the Bank not acknowledged as debts comprise of tax
 demands in respect of which the Bank is in appeal of Rs 108.84 crores
 (previous year Rs 149.64 crores) and the cases sub-judice Rs 306.06
 crores (previous year Rs 159.96 crores). The above are based on the
 management''s estimate, and no significant liability is expected to
 arise out of the same.
 
 6.4 During the year, the Bank had acquired the Indian operations of the
 Credit Cards business of Deutsche Bank AG, as a going concern on a
 slump sale basis. The acquisition was fully funded from the internal
 accruals of the Bank. The business take-over was completed on June 01,
 2011 and all the assets and mutually agreed liabilities of the said
 Credit Cards business became part of the Bank''s Balance Sheet on that
 date. The price paid towards acquisition of the business was allocated
 to the assets and liabilities on the basis of their fair value on the
 acquisition date and accounted for accordingly. The incomes generated
 by the business on and from that date, and the assets and liabilities
 pertaining to the business have been duly considered in the Profit and
 Loss Account for the year ended and the Balance Sheet as at March 31,
 2012 respectively. While the acquisition of Credit Cards business has a
 strategic importance in augmenting the product offerings of the Bank,
 it has not materially impacted the financial results forthe year ended
 March 31, 2012 and the state of affairs ofthe Bank as on that date.
 
 6.5.1 Miscellaneous income includes processing fees Rs 124.73 crores
 (previous year Rs 83.61 crores), card operations fees Rs 64.27 crores
 (previous year Rs 23.62 crores), investment banking income Rs79.02 crores
 (previous year Rs60.53 crores) and others Rs 160.99 crores (previous year
 Rs 94.37 crores).
 
 6.5.2 The Bank does not have any Overseas branches and hence the
 disclosure regarding total assets, NPAs and revenue is not applicable.
 
 6.5.3 The Bank does not have any Off-Balance Sheet SPVs (which are
 required to be consolidated as per accounting standards).
 
 7) Employee Stock Option Scheme (ESOS):
 
 The shareholders of the Bank had approved Employee Stock Option Scheme
 (ESOS) on September 18, 2007, enabling the Board and / or the
 Compensation Committee to grant such number of Options of the Bank not
 exceeding 7% of the aggregate number of issued and paid up equity
 shares of the Bank, in line with the guidelines of the Securities &
 Exchange Board of India (SEBI). The options vest at the discretion of
 the Compensation Committee, but within a maximum period of five years
 from the date of grant of option. The exercise price for each grant is
 decided by the Compensation Committee, which is normally based on the
 latest available closing price. Upon vesting, the options have to be
 exercised within a maximum period of five years. The ESOS is equity
 settled where the employees will receive one equity share per option.
 
 Recognition of expense
 
 Excess of fair market price over the exercise price of an option as at
 the grant date, is recognized as a deferred compensation cost and
 amortized on a straight-line basis over the vesting period of such
 options. The fair market price is the latest available closing price
 prior to the date of the meeting of the Board of Directors, in which
 options are granted, on the stock exchange on which the shares of the
 Bank are listed. Since shares are listed in more than one stock
 exchange, the stock exchange where the Bank''s shares have been traded
 highest on the said date is considered.
 
 Expected volatility is a measure of the amount by which the equity share
 price is expected to fluctuate during a period.  The measure of
 volatility used in Black -Scholes option pricing model is the
 annualized standard deviation of the continuously compounded rates of
 return on the share over a period of time. Expected volatility has been
 computed by considering the historical data on daily volatility in the
 closing equity share price on NSE, over a prior period equivalent to
 the expected life of the options, till the date of the grant.
 
 The Bank has charged Rs 3.04 crores to the Profit and Loss account being
 the intrinsic value of stock options granted for the year ended March
 31, 2012. Had the Bank adopted the Black - Scholes model based fair
 valuation, compensation cost for the year ended March 31, 2012, would
 have increased by Rs 55.40 crores and the proforma profit after tax would
 have been lower correspondingly. On a proforma basis, the basic and
 diluted earnings per share would have been Rs 16.02 and Rs 15.70
 respectively.
 
 The weighted average fair value of options granted during the year
 ended March 31, 2012 is Rs 136.76.
 
 8) Disclosures - Accounting Standards :
 
 8.1 Net Profit or Loss for the period, prior period items and changes
 in accounting policies (AS-5):
 
 There has been no material change in Accounting Policies adopted during
 the year ended March 31, 2012, from those followed for the year ended
 March 31, 2011.
 
 8.2 Employee Benefits(AS-15):
 
 Gratuity:
 
 The benefit of Gratuity is a funded defined benefit plan. For this
 purpose the Bank has obtained qualifying insurance policies from two
 insurance companies. The following table summarises the components of
 net expenses recognized in the Profit and Loss account and funded
 status and amounts recognized in the Balance Sheet, on the basis of
 actuarial valuation.
 
 Provident Fund:
 
 The guidance on implementing AS 15, Employee Benefits (revised 2005)
 states that benefits involving employer established provident funds,
 which require interest shortfalls to be recompensed are to be
 considered as defined benefit plans.
 
 Geographic Segments:
 
 The business operations of the Bank are largely concentrated in India.
 Activities outside India are restricted to resource mobilization in the
 international markets. Since the Bank does not have material earnings
 emanating from foreign operations, the Bank is considered to operate
 only in domestic segment.
 
 * As on March 31, 2011, there was only one related party in the said
 category; hence, in accordance with RBI guidelines, no disclosure
 relating to the transactions with these related parties.
 
 Note: Figures in bracket represent maximum outstanding during the year.
 
 8.3 Consolidated Financial Statements - Subsidiary (AS 21):
 
 ALF Insurance Services Pvt. Ltd., subsidiary of the Bank, could not
 commence operations. Consequent to the resolution of Board of
 Directors, the process of winding up of the said company is under
 progress. Since the control is regarded as temporary, no consolidated
 financial statements have been drawn up as per AS-21 Consolidated
 Financial Statements.
 
 9.1 Letters of Comfort
 
 The Bank has not issued any letter of comfort.
 
 10.  Floating provision
 
 The Bank does not carry any floating provision in the books.
 
 11.  The Micro, Small and Medium Enterprises Development Act, 2006 that
 came into force from October 2, 2006, provides for certain disclosures
 in respect of Micro, Small and Medium enterprises. There have been no
 reported cases of delays in payments to micro and small enterprises or
 interest payments due to delays in such payments.
 
 12.  Previous year''s figures have been regrouped / reclassified
 wherever necessary.