The Directors of your Bank have great pleasure in presenting this 85th
 Annual Report on the business and operations of your Bank together with
 the Audited Accounts for the year ended 31st March, 2012 (FY
 2011-2012).
 
 1.  FINANCIAL PERFORMANCE
 
 The highlights of the financial performance of your Bank for the year
 ended 31st March, 2012 are as under:
 
                                                (Rs. in crores)
 
                                              For the year ended
 
                                    31st March 2012    31st March 2011
 
 Total Deposits                           14,114.14          11,149.51
 
 Total Advances                           10,188.68           8,094.42
 
 Investments                               4,395.12           3,518.85
 
 Total Income                              1,677.18           1,201.85
 
 Operating profit                            235.44             273.86
 
 Provisions and contingencies                128.42             172.72
 
 Net Profit                                  107.02             101.14
 
 Your bank continued to register good growth in business, comparing very
 favorably in many respects with the industry.  The Bank achieved total
 business of Rs. 24302.82 Crores in fY 2011-2012 a growth of 26% over Rs.
 19243.96 Crores in FY 2010-2011.
 
 Deposits grew 27%, from Rs. 11149.51 Crores as at 31st March 2011 to Rs.
 14114.14 Crores as at 31st March 2012, and total advances expanded by
 26%, from Rs. 8094.42 Crores to Rs. 10188.68 Crores in FY 2011-2012. Of
 this, lending to priority sector rose from Rs. 2635.22 Crores in the
 previous year to Rs. 3525.03 Crores as on 31st March 2012. Agricultural
 advances increased to Rs. 2099.42 Crores from Rs. 1199.35 Crores and
 advances to weaker section recorded a significant growth from Rs. 736.02
 Crores to Rs. 1020.63 Crores.
 
 The Bank''s exposures to sensitive sectors including Real Estate and
 Capital Market were maintained well below the regulatory limits.
 
 As at the end of the year under review, the total investments of the
 Bank stood at Rs. 4395.12 Cr as against Rs. 3518.85 Cr as on 31st March
 2011.
 
 Your Bank''s Treasury continues to focus on sound Asset-Liability
 Management and on servicing clients with appropriate treasury products,
 market risk was managed well in a systematic way in a challenging year
 when interest rates were constantly rising.
 
 2.  PROFIT
 
 The Bank posted an operating profit of Rs. 235.44 Crores in FY 2011-2012
 against Rs. 273.86 Crores in the previous year FY 2010-2011. The net
 profit for the year, after provisions and taxes, rose to Rs. 107.02
 Crores as against Rs. 101.14 Crores recorded in 2010-2011 registering a
 growth of 6%. This is the second consecutive year when the bank''s
 profit grew above Rs. 100 Cr, after continuing investments in I.T, Staff
 and Infrastructure. Several branches were refurbished, new products
 launched with improved I.T capabilities and staff hiring continued, all
 of which will address fundamental issues of productivity and
 competitiveness in the ensuing years.
 
 3.  APPROPRIATIONS
 
 Particulars                                   (Rs. in Crores) 
                                            For the year ended
 
                                       31.03.2012     31.03.2011
 
 Profit brought forward                      0.25           0.16
 
 Amount available for 
 appropriation                             107.37         101.30 
 Transfer to:
 
 Statutory Reserve                          28.00          26.00
 
 Capital Reserve                             0.85           1.27
 
 Other Reserve                              32.25          40.25
 
 Transfer to Special Reserve 
 U/s 36(1) (viii) of the IT Act, 1961.      6.50            5.00
 
 Proposed Dividend                         34.14           24.38
 
 Corporate Dividend Tax                     5.54            4.15
 
 Balance of Profit carried forward          0.09            0.25
 
 4.  DIVIDEND
 
 Your Board of Directors are pleased to recommend a dividend of Rs. 3.50
 (35%) per share for the year ended 31st March, 2012 as against Rs. 2.50
 (25%) per share for previous year ended 31st March, 2011. The total out
 go in the form of dividend, including taxes, amount to Rs. 39.68 Crores
 against Rs. 28.53 Cr in the previous year.
 
 5.  EPS / BOOK VALUE
 
 Earnings Per Share was sustained at Rs. 10.97 for the year ended 31st
 March, 2012 against Rs. 10.37 for the previous year.
 
 Book Value of the share, after reckoning payment of dividend, grew to Rs.
 88.43 as on 31st March, 2012 as compared to Rs. 82.38 as on 31st March,
 2011.
 
 6.  NET OWNED FUNDS / CAPITAL ADEQUACY RATIO
 
 Net Owned Funds (NOF) of the Bank increased from Rs. 811.70 Crores as at
 the end of FY 2010-2011 to Rs. 879.14. Crores as at the end of FY
 2011-2012, reflecting a growth of 8.31%.
 
 The Capital Adequacy Ratio (CAR) as on 31st March 2012 is 13.10%. The
 bank has been consistently maintaining Capital Adequacy Ratio well
 above the regulatory minimum of 9% stipulated by the Reserve Bank of
 India.
 
 The Tier-I and Tier-II components of Capital Adequacy Ratio were
 comfortable at 8.86% and 4.24% respectively, against 10.78% and 2.41%
 respectively as at 31st March 2011. The increase in Tier II bank
 follows new issuance of subordinated debt of Rs. 250 Cores in February
 2012.
 
 7.  NON PERFORMING ASSETS (NPA''s)
 
 Your bank continues to address the NPA problem through a combination of
 process improvement, technology solutions for early alerts and strict
 credit delivery. During FY 2011-12, macro-economic conditions affected
 some of our old clients with resultant stress on NPAs, but the bank is
 supporting customers where the issues are temporary and not structural,
 and is confident that the level of NPAs will come down significantly no
 sooner the market conditions revive. There have been no concentration
 issues either and stress has been fairly dispersed. Some of our
 exposure in infrastructure, textile and real estate sector got affected
 during the year under review. Consequently, our bank Gross & Net NPA
 increased to 2.98% & 1.74% as on 31st March 2012 as against 1.93% &
 0.90% as on 31st March 2011, strong recovery efforts have also yielded
 Rs. 133.03 Crores during the year.
 
 The bank has already initiated remedial measures to improve the
 performance during FY 2012-13 to arrest slippages and improve recovery,
 and is confident that the systemic changes initiated by the Board will
 ensure repeat of the success of the previous year with a much stronger
 portfolio at the end of FY 2013.
 
 8.  BRANCH AND ATM NETWORK
 
 The bank has a network of 290 branches, 1 satellite branch and 10
 extension counters, spread over 15 states and the union territory of
 Pondicherry. The Bank''s focus is on ensuring faster technology driven
 service, as it prepares to meet the challenges of the future, but
 whilst to continue to emphasize on personalized contact and service,
 its traditional values. Your bank has a strong and wide base in the
 State of Tamil Nadu, one of the progressive States in the country,
 which has a vibrant industrial environment but is emerging strong in
 the states like Andhra Pradesh, Karnataka, Maharashtra and Gujarat
 where its traditional presence in strong clusters has contributed
 immensely to the economic growth of its customers and the areas it was
 present. Your bank has been focusing on retail banking, corporate
 banking and banc assurance, by rendering high-tech services.
 
 The Bank has an ATM network of 541, in vital / major locations for
 better service to our customers; customers can access over 83000   ATMs
 across the country. Bank continues to invest in expanding the network
 of ATMs.
 
 For better span of control and speed to market, 4 Zonal Offices have
 been replaced with 8 Regional Offices.
 
 9.  FINANCIAL INCLUSION
 
 Your Bank continues to play an active role in the Financial Inclusion
 campaign, extending basic banking services to the unorganized sectors
 of the economy, through Business Facilitator and Business Correspondent
 model. During FY 2011-12, the bank has implemented the Financial
 Inclusion plan in 32 villages besides the 18 villages covered during
 last year, thus covering all the 50 villages allotted by SLBC with
 population of over 2000 in Tamilnadu. The Bank has opened 25818
 no-frill accounts to improve its penetration in rural areas.
 
 10.  INTERNATIONAL BUSINESS
 
 The global economic issues have had their impact on India''s exports.
 This made it challenging to achieve our stated purpose of expanding the
 exports business. During the year the Bank achieved Foreign Exchange
 business Turnover of Rs. 4358.73 Crore as against the previous year
 Turnover of 4900.58 Crore. Lending to Export Sector however decreased
 from Rs. 215.43 Crore to Rs. 175.44 Crore. The financial year 2012-13 will
 see a refreshed approach to service clients on the export front and to
 substantially increase the Foreign Exchange Volume. The bank is taking
 various initiatives including staff training and line of credit, to
 address the needs of the export fraternity in the areas it operates and
 is confident that this will be a growth area in the next few years.
 
 11.  LISTING AGREEMENT WITH STOCK EXCHANGE
 
 The Equity Shares of the bank are listed on the National Stock Exchange
 of India Ltd, Mumbai. The Bank also made necessary arrangement for
 listing of our equity shares with Bombay Stock Exchange, Mumbai which
 will enhance the liquidity of our shares and investors get additional
 forum to purchase or sell the shares through over 13,300 trading
 terminals spread across 295 cities and will add visibility to the
 global investors through BSE Web Site - the most widely viewed exchange
 in the world.
 
 12.  ALIGNING TECHNOLOGY WITH BUSINESS OBJECTIVE
 
 Leveraging on the robust technology platform & Core Banking Solution,
 your bank has introduced the following Technology Products, Delivery
 Channels and Services to serve our wide spectrum of customers, cutting
 across geographical location, age etc.
 
 1.  Increased the ATM network from 250 to 541.
 
 2.  Introduced flexible retail term deposit product (Lakshmi Flexi
 Deposit) and Current Account Product (Lakshmi Current Flexi Account)
 
 3.  Deployed point of sales devices across various locations.
 
 4.  Enabled on line Term Deposit opening in internet banking.
 
 5.  Introduced Instant VISA Debit Cards, VISA Gold Cards, Rupay Cards,
 Prepaid and Gift Cards.
 
 6.  Introduced centralized issue of personalized cheque book.
 
 7.  Enabled interbank fund transfer through bank
 
 Acknowledging the progress made in implementation and promotion of
 alternate delivery channels and electronic payment systems your bank
 has been awarded with Best Bank award among small banks for
 ''Electronic Payment Systems'' by the Institute for Development and
 Research in Banking Technology (IDRBT).
 
 National Payment Corporation of India (NPCI), in recognition of
 Bank''s pioneering efforts for implementing Cheque Truncation System
 in Chennai, has included your Bank in the list of pilot Banks for
 implementation of Cheque Truncation System (CTS) in Bangalore and
 Coimbatore.
 
 Your Bank has embarked on the following strategic initiative in tune
 with the business objectives of the Bank.
 
 - Your Bank has decided to implement a comprehensive system for
 Business Process Management (BPM) and Document Management System (DMS)
 to centralize and manage back office operations like new account
 opening process, service request etc. The ultimate objective is to
 streamline business processes and to provide the same level of fast,
 error-free and quality service across the bank.
 
 - A Human Resource Management System (HRMS) project, which will aid
 better manpower planning, on boarding, motivation and monitoring of our
 Human Resource is under implementation.
 
 - Enterprise wide General Ledger was implemented to have better
 control over fixed assets and Budget Management.
 
 The bank''s aggressive investment behind technology will ensure that
 the bank is poised to raise the bar on its products and services
 addressing the needs of customers of all ages, comparable to the best
 in the industry.
 
 13.  WEALTH MANAGEMENT / PARABANKING ACTIVITIES
 
 i.  Life Insurance: Bank has entered into a tie up with the Giant in
 the Life Insurance sector - LIC of India for soliciting Life Insurance
 policies for our customers. All the products of LIC are available
 through our branches. It opens up a reliable and trustworthy investment
 avenue, making LVB a one stop shop for all financial requirements.
 
 ii.  General Insurance: Bank has tie-up with M/s. Bajaj Allianz General
 Insurance Company to market the General Insurance products.
 
 iii. Mutual Funds & PMS: The Bank is presently having tie-up with
 thirteen leading Asset Management Companies for promoting various
 Mutual Fund schemes. In addition, we are promoting Port Folio
 Management Services (PMS) through UTI, Reliance and Sundaram Asset
 Management Company.
 
 iv.  Money Transfer through Branch Channels: Foreign inward remittances
 arrangement with M/s. Weizmann Forex Ltd. for extending Western Union
 Money Transfer facility, in addition to this, the bank has also tied-up
 with M/s. UAE Exchange & Financial Services Ltd., for offering Global
 Money Transfer services through Xpress Money and Money gram.
 
 v.  Money Transfer through Direct Remittances: Tied up with Times of
 Money - Remit 2 India. & Al-ahalia for Inward remittance from Abroad
 which enables the NRIs to directly remit the amount to their account /
 residents.
 
 vi.  Investment & Infrastructure Bonds: Bank empanelled with M/s Bajaj
 Capital Ltd. for promoting Investment & Infrastructure Bonds.
 
 vii. PAN Card Services: Bank has tied up with M/s. UTI Infrastructure &
 Technology Services Ltd., (UTIITSL) as PAN Service Agent (PSA) for
 collecting the PAN Application across the country through Branches.
 
 viii.  Depository Participant Services: Registered as Depository
 Participant with NSDL and with necessary clearances, this product is
 offered to our customers.
 
 ix.  New Pension System (NPS): Bank has registered with PFRDA and
 NSDL-CRA as Point of Presence (PoP) for offering NPS services for all
 citizens except Government Employees already covered by NPS.
 
 x.  ASBA: As Bankers to the issue, the Bank can now receive
 applications under ASBA mode thus enabling the investors to earn
 interest till allotment of securities.
 
 xi.  POS: The bank is realigning and retraining the branch staff to
 focus on a fuller range of services that customers expect and is
 improving capabilities to design specific products for specific
 category of clients.
 
 14.  RISK MANAGEMENT
 
 Risk and Return are two sides of the same coin in the activities of any
 bank. Risk Management is critical in the way modern business is
 operational because of dynamic business environment to which business
 is exposed. It is not only a requirement under several voluntary codes
 and statutes but also make business sense to identify the probability
 of not achieving strategic and business goals. Risk Management has to
 be embedded in business processes to ensure that it is being practiced
 and made part of the culture of the organization. With this in mind,
 the bank has established systems and policies ensuring an ongoing
 assessment of relevant risk types on an individual basis and in the
 aggregate as well.
 
 The Board of Directors effectively monitors the risk management. A
 Board Level Committee oversees the implementation of Credit risk,
 Market Risk and Operational Risk policy prescriptions. The Asset
 Liability Management Committee (ALCO) looks into the management of
 Liquidity and Market risks and ensure adherence to prudential limits.
 At Executive Level also a committee consisting of Top Executives
 reviews periodically Liquidity Risk, Credit Risk & Market risk to take
 stock of the current situation. At the organization level an Integrated
 Risk Management Department functions specifically to identify measure,
 monitor and reduce risk; optimize returns and assess the required
 capital level. Bank has already automated the process of capital
 calculation and Base rate as per RBI Guidelines. Bank has a robust
 credit risk assessment system to ascribe borrower risk grades. This
 facilitates data collection and analysis for moving towards Advanced
 Approaches. Bank has in place a well-defined frame work for managing
 market Risk .Basic Indicator Approach has been adopted for computation
 of capital charge for Operational Risk.
 
 The Bank has since, migrated to Basel II -New Capital Adequacy
 Framework (NCAP) - from March 2009 and is preparing ICAAP document to
 assess its inherent risk and capital requirements. Bank uses Stress
 Testing and scenario Analysis in various risks as required under Pillar
 II for enhancing risk assessment and to provide the bank a better
 understanding of the likely impact even in extreme circumstances.
 Technology is extensively used in measuring and discussing market risk
 using statistical tools including stress testing.
 
 15.  INTERNAL CONTROL SYSTEMS
 
 The Bank has put in place well articulated internal control measures in
 tune with the complexity of business operations, organization''s size
 and supervisory compliance standards. There is continuous review of the
 efficacy of the systems.  and the following Audit & Inspections are
 carried out:
 
 - Regular comprehensive transaction based inspection by trained
 internal inspector of branches.
 
 - Risk Based internal Audit to measure the risk in branches and work
 out the mitigating techniques.
 
 - Pre-disbursement credit audit.
 
 - Concurrent Audit by Empanelled Chartered Accountant Firms.
 
 - Information System Audit by Specialized and trained inspectors.
 
 - Statutory Audit of branches and Controlling offices by Chartered
 Accountant Firms in terms of the guidelines of the Reserve Bank of
 India.
 
 The Inspection Committee of the Executives review the inspection of
 branches carried out by the internal inspectors.  The Audit Committee
 of the Board (ACB) is supervising the entire audit functions of the
 Bank and the compliance thereof. Budgets are agreed on various
 parameters including Revenue and Costs, and progress measured for
 appropriate mid-term corrective measures at the Board Level.
 
 16.  HUMAN RESOURCES
 
 Staff strength of the Bank was augmented during the year 2011-12 with
 recruitment of 6 Executives, 64 Officers, 430 Clerks, 82 Sub Staff and
 246 Sales personnel, a significant scale-up. Promotion to higher scale
 and cadre rolled out and 371 staff got promoted. Total number of
 employees as on 31.03.2012 was 3054 as against 2626 as on 31.03.2011.
 Business per employee had gone up from Rs. 7.19 crores as on 31.03.2011
 to Rs. 7.99 crores as on 31.03.2012, notwithstanding an increase in Human
 Resources during the financial year 2011-12.
 
 The bank''s focus on training the internal resources on a continual
 basis gained momentum with introduction of online e-learning duly
 leveraging technology. Bank has trained considerable number of
 resources in offsite training programmes in reputed institutions such
 as ISB (Hyd), COD, ASCI, CAB, SIBTC, IDRBT, NIBM & FEDAI.
 
 Industrial Relations were cordial during the year.
 
 17.  SOCIAL INITIATIVES
 
 Your bank continues its tradition of being active in supporting worthy
 social causes. In FY 2011-12, your bank has contributed to the
 following social causes:
 
 i) Assisted Government Higher Secondary Schools at Uppidamangalam and
 Velliyanai for Construction and Renovating of toilets through M/s.
 Rotary Club of Karur Angels.
 
 ii) Contributed for Purchase of New Ambulance to Inner Wheel Club,
 Bangalore.
 
 iii) Donated a new PC to Madurai Jesuit Province, Dindigul.
 
 iv) Funded to Nanjundeswara Seva Trust, Bangalore to carry out various
 social services.
 
 v) Donated used furniture and photo copier to Govt. Higher Secondary
 School, Pugalur.
 
 vi) Donated to Naradha Gana Sabha, Karur for constructing and
 renovating Sabha Auditorium in order to conduct cultural performances
 to motivate the youngsters.
 
 vii) Donated to Karnataka Arya Vysya Charitable Trust for scholarships
 for students to pursue their education.
 
 viii) Your bank continues to support the Rotary Medical Centre, a
 Platinum Jubillee initiative of the bank, managed by the Rotary Club of
 Karur.
 
 18.  ISSUE OF TIER II CAPITAL
 
 The Bank issued 11.4% Unsecured Redeemable Non-Convertible Subordinated
 Tier II Bonds Series VII in the year 2011-2012 for Rs. 250 Crores. The
 issue was fully subscribed. The issue was rated ''BWR A'' by
 Brickwork Ratings India Pvt Ltd and ''A-'' (Single A-) by Credit
 Analysis and Research Ltd (CARE). The issue opened on 03rd January 2012
 and closed on 03rd February 2012 successfully. This is the first large
 issue your bank has made and the wider participation of banks and
 insurance companies as investors reflected the confidence the market
 has reposed on your bank''s long term success.
 
 19.  CORPORATE GOVERNANCE
 
 Corporate Governance of the Bank continues to rest on the fundamental
 pillar of high ethical values, designed to enhance and protect the
 interest of all the stakeholders. The Bank has complied with the code
 of corporate governance as enumerated in Clause 49 of the Listing
 Agreement. All the Directors on the Board have executed deed of
 covenant and undertaking individually in line with the recommendations
 of Dr. Ganguly Committee Report.
 
 Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
 and Analysis is presented in Annexure-A, Report on Board Committees is
 furnished in Annexure-B. Composition of the Board of Directors together
 with the attendance of Directors at various meetings of the Board, its
 Committees and Annual General Meeting and the number of directorships
 held by them along with the details of Audit Committee and Share
 Transfer & Investors'' Grievances Committee are furnished in
 Annexure-C. General Shareholders'' information is furnished in
 Annexure-D.
 
 20.  CHANGES IN THE BOARD OF DIRECTORS
 
 Mr. S.G. Prabhakaran, Mr. S. Dattathreyan and Mr. K. Ravindrakumar are
 the directors retiring by rotation at the ensuing Annual General
 Meeting and being eligible, offer themselves for reappointment.
 
 Mr. R. Sharan and Mr. A. Satish Kumar were appointed as Additional
 Directors on the Board with effect from 30.05.2012 pursuant to the
 provisions of Section 260 of the Companies Act, 1956.
 
 21.  DIRECTORS'' RESPONSIBILITY STATEMENT PURSUANT TO SEC 217 (2AA) OF
 THE COMPANIES ACT, 1956
 
 The Board of Directors of your Bank confirms that in the preparation of
 the annual accounts for the year ended March 31, 2012:
 
 - 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 applied consistently.
 
 - Reasonable and prudent judgment and estimates were made wherever
 required so as to present a true and fair view of the state of affairs
 of the Bank as at the end of the financial year and the profit of the
 Bank for the year ended on March 31, 2012.
 
 - Proper and sufficient care was taken for the maintenance of
 adequate accounting records in accordance with the provisions of
 applicable laws governing banks in India for safeguarding the assets of
 the bank and for preventing and detecting fraud and other
 irregularities; and
 
 - Accounts have been prepared on a ''going concern'' basis.
 
 22.  EMPLOYEES STOCK OPTION SCHEME
 
 In the year 2010, the shareholders of the Bank have approved the issue
 of shares through Stock Option Scheme. The necessary statutory
 disclosures regarding ESOS as per Clause 12 and Certificate from
 Auditors as per Clause 14 of Securities and Exchange Board of India
 (Employees Stock Option Scheme and Employees Stock Purchase Scheme)
 Guidelines, 1999 has been furnished as part of this report.
 
 23.  STATUTORY DISCLOSURE
 
 1.  The provisions of Section 217(1) (e) of the Companies Act, 1956
 relating to conservation of energy and technology absorption do not
 apply to your Bank. The Bank has, however, used Information Technology
 extensively in its operations.
 
 2.  The Bank continued to encourage the country''s exports and will
 endeavor to enlarge its export financing.
 
 3.  The information required under Section 217(2A) of the Companies
 Act, 1956 and the rules made there under, is annexed elsewhere in this
 report.
 
 4.  The report on the Corporate Governance is annexed and forms part of
 this report.
 
 24.  FY 2012-13 - AN OUTLOOK
 
 The Union Budget 2012-13 indicates a subdued yet favorable
 macroeconomic outlook in terms of real GDP growth (7.6 per cent),
 inflation scenario (6.4 per cent) and expected moderation in current
 account deficit. The budgetary estimates for 2012-13 indicate the
 commitment to carry forward fiscal consolidation. The RD, as a ratio to
 GDP, is budgeted to decline by 1 percentage point to 3.4 per cent of
 GDP in 2012-13. Similarly, the GFD-GDP ratio is budgeted to decline to
 5.1 per cent in 2012-13 from the level of 5.9 per cent in the previous
 year.
 
 The macro conditions will continue to be relatively challenging and in
 this context, your bank''s focus will continue to be on consistent
 profitable growth, whilst investing behind network of new branches and
 upscaling talent and productivity.  The bank is focused on sustainable
 growth, influencing employee productivity up to match competition and
 to strengthen the credit portfolio in a manner that fundamentally
 addresses near term challenges and long term strategy. We will continue
 to expand the branch network and technology investments addressing
 products and processes will continue aggressively. System-based
 identification of NPAs will be introduced and process centralization
 will be carried out, leaving branches to focus more on marketing and
 client service. Retail credit will drive growth in advances. The
 strategy is to continue the trend of growth in business, strengthen
 portfolio, drive employee productivity, invest behind I.T and yet
 maintain growth in profit. FY 2013 should enable the bank to
 consolidate the efforts of transformation and mark a sharp change
 towards a higher trajectory of growth. To this end, the Bank will also
 explore raising additional capital under TIER I or TIER II with
 appropriate approvals of the shareholders and regulators.
 
 25.  AUDITORS
 
 The Statutory audit of the Bank was carried out by M/s. Sagar &
 Associates, Chartered Accountants, Hyderabad whose report is annexed.
 
 M/s. Sagar & Associates, Chartered Accountants, Statutory Auditors of
 the Bank will retire on the conclusion of this Annual General Meeting
 and are eligible for re-appointment, subject to the approval of Reserve
 Bank of India and the shareholders. Resolution for their re-appointment
 is placed before the shareholders for approval.
 
 As regards the auditor''s qualification on reconciliation of accounts
 with other banks in Note No.1 in Schedule 18 to the annual accounts,
 reconciliation of some of these accounts is in progress and the impact,
 if any on the financial results is not material.
 
 26.  ACKNOWLEDGMENT
 
 Your Directors wish to place on record their earnest appreciation of
 the support and guidance of all the shareholders, investors and
 customers, the Reserve Bank of India, SEBI, NSE, Department of Income
 tax and other regulatory agencies.
 
 Your Directors would also like to express their sincere appreciation of
 the contribution made by the Management and Staffs including the
 Employees Union and Officers'' Association and look forward to a more
 evolved relationship as steps are being taken to re-orient the bank for
 the future.
 
                             For and on behalf of the Board of Directors
 
 Place : Chennai                                          (K.R. PRADEEP)
 
 Date : 31.07.2012                               Chairman of the Meeting