1.  (a) The reconciliation of inter branch transactions and tallying of
 balances in the accounts as per general ledger with those of subsidiary
 ledgers is in progress. The impact of the above, if any, on the
 financial results for the year ended 31st March 2011, in the opinion of
 the management, is not material.
 
 (b) In a few branches, tallying of the balances in the accounts as per
 General Ledger with those of subsidiary ledgers/registers/schedules is
 in progress. The effect of this on the profit of the Bank is not
 ascertainable.
 
 2.  (a) Provision for income tax for the year is arrived at after due
 consideration of the various favourable judicial decisions on disputed
 issues.
 
 (b) The disputed Income Ta x demand outstanding as on 31.03.2011
 amounts to Rs.204.59 crores (previous years Rs.175.71 crores) and is
 included under Item I of Schedule 12 (Contingent Liabilities). No
 provision is considered necessary in respect of the disputed
 liabilities in view of favourable decision by various appellate
 authroties on similar issues.
 
 3.2.1. In respect of securities held under HTM category premium of
 Rs.3.19 crores (previous year Rs.3.39 crores) has been amortized during
 the year and debited under interest received on Government Securities.
 
 3.3.3 Disclosures on risk exposure in derivatives
 
 Qualitative Disclosure
 
 The Bank does not have exposure in derivatives. Therefore the
 qualitative disclosure on risk exposure in derivatives is Not
 Applicable.
 
 3.3.4 Shifting of securities:
 
 For the year ended 31-03-2011, Bank has shifted securities amounting to
 Rs.96.32 crores (Face Value) (Previous year Rs.291.50 crores Face Value)
 from HTM to AFS category and loss has arose on account of such transfer
 amounting to Rs. 0.12 crores has been provided during the year. Further
 Bank has shifted securities amounting to Rs.226.66 crores (Face
 Value)(Previous year Rs.92.93 crores Face Value) from AFS to HTM
 category and loss which arose on such transfer amounted to Rs.11.96
 crores which has been provided during the year. Total loss on account
 of shifting of securities is Rs. 12.08 crores during the year.
 
 3.4.2 Particulars of Accounts Restructured
 
 In accordance with the option given by the Reserve Bank of India, the
 Bank has made provision at 5% of the total dues to the Bank in respect
 of diminution in the fair value of restructured advances where the
 total dues to the Bank is less than rupees one crore. The auditors have
 relied on the data provided by the management in regard to the
 compliance of Reserve Bank of India circulars on full implementation of
 the restructuring packages in respect of the said restructured
 advances.
 
 3.7.4 Details of Single Borrower Limit (SBL)/Group Borrower Limit (GBL)
 exceeded by the bank. (As compiled by management)
 
 A.  SBL exceeded by the Bank for the 
 period 01.04.10 to 31.03.2011             NIL
 
 B.  GBL exceeded by the Bank for the 
 period from 01.04.2010 to 31.03.2011      NIL
 
 
 3.8.2 Disclosure of Penalties imposed by  RBI
 
 No penalties were imposed by Reserve Bank of India during the year.
 
 
 3.9. Disclosure in terms of Accounting Standards:
      
 Accounting Standard 15 - Employee benefits
 
 Payments to and provision for employees include provision made during
 the year towards pension, gratuity and leave encashment etc in
 accordance with Revised Accounting Standard AS-15.
 
 
 Retirement benefits to employees
 
 a) The effect of transitional liability till 31.03.07 as required by
 the accounting standard has been recognized as an expense on straight
 line basis over a period of five years pursuant to limited revision of
 standard on 17.10.07.  Accordingly an amount of Rs.3.96 crores has been
 charged to Profit & loss Account for the year ended 31.03.11 being
 1/5th of the transitional liability.  An amount of Rs.3.96 crores is
 being carried forward to be charged to profit and loss account in the
 next one year.
 
 b) The summarized position of Post employment benefits and long term
 employee benefits recognized in the profit and loss account and balance
 sheet as required in accordance with the Accounting Standard - 15
 (Revised) are as under:
 
 3.10 Prudential regulatory treatment prescribed by RBI in respect of
 pension and Gratuity liability.
 
 In terms of the requirements of the Accounting Standard - 15(Revised) -
 Employee Benefits, the entire amount of Rs. 93.11 Crores (towards
 Pension Rs. 77.79 Crore and towards gratuity Rs. 15.32 Crore) on account
 of re-opening of pension option and enhancement in Gratuity limit
 during the year, is re- quired to be charged to Profit & Loss Account.
 However, in accordance with the guidelines issued by Reserve Bank of
 India vide their Circular No.DBOD.BP.BC.80/21.04.018/2010-11 dated
 09.02.2011 and letter DBOD.  No. BP.BC. 15896 /21.04.018/2010-11 dated
 08.04.2011, the Bank has charged to Profit & Loss Account a sum of Rs.
 18.62 Crore, (representing 1/5th of the total amount) and the entire
 liability of Rs. 12.54 Crore towards separated / retired employees on
 account of pension and gratuity liability. The balance unamortized
 amount of Rs. 62.23 Crore towards Pension and Rs. 12.26 Crore towards
 Gratuity is carried forward.
 
 i) Deferred tax assets are recognised for future tax consequences of
 temporary differences arising between the carrying values of assets and
 liabilities and their respective tax bases and operating carry forward
 losses.  Deferred tax assets are recognized only after giving due
 consideration to prudence. Deferred tax assets and liabilities are
 measured using tax rates and tax laws that have been enacted or
 substantively enacted by the Balance Sheet date. The impact on deferred
 tax assets and liabilities on account of a change in the tax rates is
 also recognized in the income statement.
 
 ii) During the year, an amount of Rs. 7.50 crore (net) has been debited
 [Previous year Rs. 0.55 crore debited] to the Profit and Loss account by
 way of adjustment to Provision for deferred tax.
 
 4. Intangible Assets AS 26:
 
 The Bank has followed the AS 26 - Intangible asset issued by ICAI and
 the guidelines issued by the RBI to this regard.
 
 5. Accounting Standard 28 - Impairment of Assets:
 
 A substantial portion of the bank''s assets comprises financial assets
 to which Accounting Standard 28 is not applicable. In the opinion of
 the bank, there is no impairment of other assets to any material extent
 as at 31st March 2011 requiring recognition in terms of the said
 standard.
 
 6. Additional Disclosures
 
 6.1 Disclosure in terms of AS 10 - Fixed Assets (Revaluation of
 Premises): During the year, Bank has revalued the Premises portfolio
 through the Bank''s approved panel engineer / valuer and the market
 value of the premises has been taken into account. The following
 information has been disclosed as per the ICAI guidelines.
 
 7.  Bancassurance Business:
 
 Fees, remuneration received from bancassurance business:
 
 For the year ended 31.03.2011, the bank received income of Rs.2.55 Crore
 (Gross Commission) from Bancassurance business.
 
 8.  Previous year''s figures have been regrouped / reclassified
 wherever considered necessary to conform to the current year''s
 classification.