The Board of Directors have pleasure in presenting this Annual Report
 together with the Audited balance Sheet and Profit & Loss Account of
 the Bankforthe year ended 31st March, 2011.
 
 1.  BUSINESSOPERATIONS
 
 The Business of the Bank stood at Rs. 235893.16 crore on 31st March
 2011 as against Rs. 204441.53 crores in the previous year.  Total
 deposits of the Bank stood at Rs. 139054.26 crore and have shown an
 increase of Rs. 18796.67 crore depicting a growth of 15.63%. Cost of
 deposit stood at 6.03% as against 6.57% for financial year 2009-10. The
 Bank has taken conscious decision of shedding high cost deposit and
 substituting the same with normal rate and lower cost deposits so as to
 contain the cost of deposits.  On the other hand, net advances as at
 31st March 2011 stood at Rs. 95908.22 crore, registering a growth of
 14.87%. During the fiscal 2010-11, yield on advances has increased to
 10.32% from previous years level of 10.20%. The measures taken up by
 the bank to improve yield on advances through lending to SME, Mid
 Corporate and Retail sector besides implementation of Base Rate has
 enabled the bank to improve the yield on advances.
 
 The credit deposit ratio of the Bank, as at 31st March 2011, stood at
 69.73% . The Bank ensured adequate flow of credit to the productive
 sectors of the economy. The Loans & Advances portfolio of the bank is
 well diversified and balanced. The Bank has ensured that its exposure
 to sensitive sectors such as Capital Markets, Real Estate, NBFCs etc.
 is well within the regulatory & prudential cap.
 
 2.  CAPITAL & RESERVES
 
 During the year, the bank transferred a sum of Rs.1150 crore to
 Reserves (which includes Rs. 376.00 crore transferred to Statutory
 Reserves, Rs. 774.00 crore to Revenue and other Reserves) out of the
 profit for the year 2010-11. With this, capital & reserves as on March
 31, 2011 have gone upto Rs.11097.14 crore as against Rs. 8237.95 crore
 as at end March 2010 and the ratio of Capital & Reserves to average
 working funds stood at 7.62% as on 31.03.2011 as against 6.61% as on
 31st March 2010.
 
 3.  CAPITAL ADEQUACY RATIO
 
 As on March 31. 2011 the Capital Adequacy Ratio of the Bank under Basel
 -II stood at 14.23% as against 12.54% as on 31st March, 2010(under
 Basel-ll). This is well above the regulatory minimum requirement of
 9.0%.
 
 4.  FINANCIAL PERFORMANCE
 
 The Bank has posted a total income of Rs. 13047.89 crore during the
 year as against Rs. 11457.17 crore last year thus registering an
 increase of Rs. 1590.72 crore (a growth of 13.88% during the fiscal
 2010-11. Operating Profit of the Bank has increased to Rs.  3245.14
 crore as against Rs 2421.50 crore last year showing a growth of 34.01 %
 The Bank has made a net profit of Rs. 1502.87 crore, after making all
 requisite provisions showing an increase of Rs. 368.19 crore (growth of
 32.45%) during the fiscal 2010-11.
 
 Appropriation from the Net Profit have been effected as per table given
 on next page:-
 
 Table 1: Financial Performance (Rupees in crore)
 
                                        31.03.2011      31.03.2010
 
 Interest Income                        12087.82          10257.13
 
 Other Income                             960.07           1200.04
 
 Total Income                           13047.89          11457.17
 
 Interest Paid                           7910.27           7349.69
 
 Operating Expenses                      1892.48           1685.98
 
 Total Expenses                          9802.75           9035.67
 
 Operating Profit                        3245.14           2421.50
 
 Provisions & Contingencies              1742.27           1286.82
 
 Net Profit                              1502.87           1134.68
 
 Add-Profit brought forward                 0.58              0.83
 
 Net Profit available for                1503.45           1135.51
 appropriation
 
 APPROPRIATION
 
 Transfer to Statutory reserve            376.00            284.00
 
 Transfer to Revenue and                  692.00            351.00
 
 Other reserves
 
 Transfer to Special Reserve               82.00             60.00
 u/s36(1)(viii) of I-T Act
 
 Transferto capital reserve                 --              173.19
 
 Proposed Dividend                        303.43            227.99
 
 Tax on Dividend                           49.22             38.75
 Balance carried over to                    0.79              0.58
 Balance Sheet
 
 5.  DIVIDEND
 
 Your Banks policy of declaring dividend is to reward the share holders
 as well as to plough back profit for maintaining a healthy capital
 adequacy ratio & for supporting future growth. Accordingly, your
 Directors are pleased to propose a total dividend of 104 % (i.e
 Rs.10.40 per share)for the year ended 31st March, 2011 as against 91
 %(i.e. Rs.9.10 pershare) paid for the preceding year.
 
 6.  SECTORAL DEPLOYMENT OF CREDIT TO PRIORITY SECTOR
 
 Banks advances to priority sector increased by Rs. 6267.10 crore from
 Rs. 29383.61 crore in March 2010 to Rs. 35650.71 crore in March 2011
 registering a growth of 21.33%. The Priority Sector Advances
 constituted 42.70% of the Adjusted Net Bank Credit (ANBC) against the
 stipulation of 40%. The comparative position of advances under various
 segments under Priority Sector as at the end of March 2010 and March
 2011 is as follows:
 
                                               (Amount Rs. in crore)
  
 S.No.  Sectors                          March 2010      March 2011
 
 1.  Priority sector credit               29383.61        35650.71
 
 2.  Agriculture                          11267.51        12721.13
 
 3.  DirectAgriculture                     6564.47         8887.91
 
 4.  Indirect Agriculture                  4703.04         3833.22
 
 5.  SSI/SE                               10868.81        15844.45
 
 6.  Educational Loan                       942.72         1065.15
 
 7.  Housing Loan                          6258.03         5979.69
 
 8.  Other P.S.                              46.544           0.29
 
 6.1 Agriculture Advances
 
 Banks advances to agriculture increased by Rs. 1453.62 crore from
 Rs.11267.51 crore in March 2010 to Rs.12721.13 crore in March 2011,
 registering a growth of 12.90%. The advances to direct agriculture
 segment increased by Rs.2323.44 crore from Rs.6564.47crore as on
 31.3.2010 to Rs.8887.91 crore as on 31.3.2011 constituting a growth of
 35.39%. The Indirect agriculture advances decreased by Rs.869.82 crore
 from Rs.4703.04 crore as on 31.3.2010 to Rs.3833.22 crore as on
 31.3.2011 showing an decrease of 18.49% due to change in norms of
 classification of indirect agriculture loans by RBI.
 
 6.1.1. Flow of credit to Agriculture sector (Fresh disbursement) During
 the financial year 2010-11, fresh disbursement of credit to agriculture
 sector amounted to Rs. 6947.06 crore. During the year, a total of
 221651 new agriculture loan accounts were added.  There was an average
 addition of 293 new agriculture loan accounts per rural and semi-urban
 branch against stipulation of 250 acconts.
 
 6.1.2. Hi-Tech Dairy
 
 The bank is providing credit to rural youths for their self employment
 under Hi Tech commercial dairy scheme. Under the scheme State
 Government Agencies / Dairy Development Boards impart one month
 training to unemployed youth for their skill upgradation. As on
 31.03.11, an amount of Rs. 84.03 Crore has been sanctioned to 722
 units.
 
 6.1.3. Oriental Saur Urja Dohan Scheme
 
 With a view to exploit the extensive use of unconventional energy
 resources and reduce the dependence on limited fossil fuel, the bank is
 implementing a scheme for financing solar water heating & lighting
 system, for creating a viable alternate to conventional source of
 energy. The scheme is open to individual, institutional, commercial and
 industrial users. Bank is also providing loan for solar water heating
 system, under MNRE scheme of IREDA. The bank finance for Solar Water
 Heating System amounted to Rs.  25.79 Lac under MNRE tie up arrangement
 and bank claimed subsidy of Rs. 4.83 Lac during the year.
 
 6.1.4. Small and Medium Enterprises (SMEs)
 
 Banks exposure to Small Enterprises sector reached at Rs.15844.45
 crore at the end of March 2011 with an increase of Rs. 4975.64 crore
 (Y-o-Y growth 45.78%) over Rs. 10868.81 crores as on March 2010.
 Further, SME advances increased by Rs. 5098.97 crore to Rs. 17670.27
 crore registering a growth of 40.56% against the stipulation of 20%.
 The Tiny/ Micro sector advances increased by Rs. 1750.72 crore to
 Rs.5116.95 crore posting a growth of 52.01 %.
 
 Bank has a MOU with NSIC for outsourcing credit proposals. The Bank has
 a tie-up arrangement with SME Rating Agency of India Ltd. (SMERA) for
 providing comprehensive rating services of SMEs borrowers of the Bank
 at subsidized rates.
 
 6.1.5.  Oriental Green Card (Kisan Credit Card) & Oriental Kisan Gold
 Card (OKGC)
 
 During the Financial Year 2010-11, Bank has issued 1,02,206 cards to
 farmers to meet their credit requirement for crop production, repairing
 of agricultural machinery & equipment, working capital for allied
 activities, to repay their old debts taken from non institutional money
 lenders and consumption needs. The total amount of loan disbursed
 through kisan credit cards during the year was Rs.2089.69 crore. At the
 end of financial year 2010- 11, the total number of cards issued to
 farmers rose to 754734.
 
 6.1.6. Oriental Bank Grameen Project (OBGP)
 
 Bank is providing finance to rural poor under home grown model of micro
 finance viz. Oriental Bank Grameen Project. It is being implemented
 through Joint Liability Group concept consisting of 5 members in each
 group, preferably women.  The Bank has formed 3327 Groups reaching out
 to 16136 poor families spread across 256 villages in the states of
 Pubjab, Haryana, Rajasthan, Uttar Pradesh and Uttarakhand. The
 cumulative amount advanced to these groups as at the end of March 2011
 was Rs. 30.88 crore. Savings to the tune of Rs. 8.76 crore have been
 mobilized by the groups.
 
 6.1.7. Advances to Weaker Sections
 
 Advances to weaker sections, consist of beneficiaries belonging to
 scheduled castes/scheduled tribes/small and marginal farmers/ landless
 labourers/rural artisans/minority community/ beneficiaries under Govt.
 Sponsored schemes (except PMEGP) reached to Rs. 6221.02 crore as a the
 end of March 2011 as against Rs. 4131.25 crore as at the end of March
 2010 registering growth of 50.58%.
 
 6.1.8. Credit under Differential Rate of Interest Scheme Credit flow at
 concessional rate of interest of 4% p.a. to the low- income group of
 the society both in rural having annual family income upto Rs. 18,000/-
 and urban having annual family income upto Rs. 24,000/- centres was Rs.
 73.52 crore as at the end of March 2011.
 
 6.1.9. Loans to SCs/STs
 
 Bank continues its thrust in providing financial assistance to SCs/STs
 beneficiaries. The advances to these beneficiaries improved to
 Rs.530.66 crore in March 2011 against Rs. 421.03 crore as at the end of
 March 2010.
 
 6.1.10.  Prime Minister Employment Generation Programme (PMEGP)
 
 The Scheme has been implemented by the Government of India by merging
 the two existing schemes viz. PMRY and REGP w.e.f.  1M April 2008. The
 scheme aims for generation of( employment opportunities through
 establishment of micro enterprises in rural as well as urban areas. The
 bank has sanctioned credit assistance to the tune to Rs.75.47 crores to
 1260 applicants under the scheme during the year 2010-11 against
 allocated target of benefiting 1497 persons.
 
 6.1.11. Swaran Jyanti Shahri RojgarYojana (SJSRY)
 
 For providing gainful employment to urban poor (living below the urban
 poverty line) through setting up self employment ventures, bank is
 providing financial assistance under the scheme since its inception.
 The bank sanctioned to 2339 beneficiaries to the tune of Rs.12.18
 crores during 2010-11.
 
 6.1.12. Swarn Jyanti Gram SwarojgarYojana (SGSY)
 
 The scheme is operative in rural areas of the country and cover the
 aspects of self employment such as organization of rural poor into Self
 Help Group (SHGs) training credit technology, infrastructure and
 marketing. The bank is participating in the schemes. During 2010-11
 bank sanctioned financial assistance to 2015 swarojgaries to the tune
 of 16.69 crore.
 
 6.1.13. Credit Flow to Women Beneficiaries
 
 Women are assuming greater responsibilities and playing an active role
 in the economic growth of the nation but remain under represented while
 receiving the credit delivery from the Financial Institutions of the
 country. So for strengthening of credit flow to women, Bank has
 implemented 13-points action plan as advised by the Government of
 India. Bank has designated 10 branches as specialized branches for
 women entrepreneurs.  A number of credit schemes, such as Oriental
 Mahila Vikas Yojana, Loan scheme for Professional & Self Employed
 Women, Loan scheme for Beauty Parlour/ Boutiques/ Saloons/ Tailoring,
 Scheme for Financing Working Women, Oriental Swaran Yojana etc. are
 designed by the bank especially for women. Besides, a special project
 called Oriental Bank Grameen Project (OBGP) provides all types of
 banking assistance to the rural poor women.
 
 As a result the Banks advance to women increased by Rs.632.29 crore
 from Rs. 3646.69 crore as on March 2010 to Rs. 4278.98 crore as on
 March 2011 registering a growth of 17.33%. Banks advances to women
 beneficiaries as on March 2011 was 5.12% of ANBC against the required
 stipulation of 5%.
 
 6.1.14. Financial Inclusion
 
 With a view to provide banking facilities to the sections of society so
 far deprived from the formal financial sector, Bank has rolled out
 Financial Inclusion Plan in 300 allotted villages with population more
 than 2,000 through Business Correspondent model. Bank is providing
 services to people in these villages at their doorsteps using biometric
 cards and hand held devices (POS).
 
 In these 300 villages 77,940 Financial Inclusion Plan (FIP) customers
 have been enrolled for issuance of Bio-metric card; out of which 25,823
 customers have been issued activated Bio-metric card for extending
 banking services.
 
 Further, Bank is also implementing project of distribution of Social
 Welfare scheme funds in 6 districts namely Amritsar, Muktsar, Gurdaspur
 (Punjab), Sriganganagar, Hanumangarh (Rajasthan) and Jind (Haryana). A
 total number of 1,66,146 beneficiaries have been issued Bio-metric
 cards/ Smart cards for distribution of benefits of Social Welfare
 schemes under Urban Financial inclusion bank has issued 1158 biometric
 cards to Kalkaji Agri Mandi labourers.
 
 6.1.15. Lead Bank Responsibility
 
 Bank is performing the functions of Lead Bank in three Districts namely
 Ferozpur in Punjab, Sriganganagar in Rajasthan and Palwal in Haryana.
 
 6.1.16.0BC Rural Development Trust
 
 Bank has set up a special purpose vehicle in the name of Oriental Bank
 Rural Development Trust (OBCRDT) for setting up Training Centres at
 various places across the country for imparting training for capacity
 building in rural areas. The Trust came into being on the 9th December
 2005 as a registered body.
 
 The main objective of the Trust is to establish training
 colleges/institutes and workshops for providing training for farmers on
 modern techniques of farming, tractor/farm machinery repair &
 maintenance and other aspects of agriculture/rural development; micro
 finance and capacity building of the rural youth and women.
 
 Presently four OBCRSETIs (OBC Rural Self Employment Training
 Institutes) are functional at Dehradun, Sriganganagar, Jaipur and
 Ferozepur.
 
 We have been allotted land by the State Government in Chomu (Jaipur),
 Rajasthan and Zira (Ferozepur), Punjab. The RSETI building at Chomu was
 inaugurated in the hands of Shri. Namo Narain Meena Honble Union
 Minister of State for Finance on 30.03.2011. Construction work is also
 in full swing at Zira (Ferozepur). Govt of India has sanctioned an
 amount of Rs. 2 crores for constructions of two centres. Trust is also
 in the process of setting up training centre in the Palwal district of
 Haryana.
 
 During the Financial Year 2010-11, a total of 177 training programmes
 were conducted and 5379 candidates were given training. Of these 50
 were entrepreneurship development programmes on subjects like tailoring
 & dress designing, watershed management, phulkari embroidery, milch
 animal rearing, crop production, beauty parlour, medicinal plantation,
 etc which benefitted 1325 candidates. A total of 457 trained persons
 were credit linked for pursuing/setting up of economic activities.
 Emphasis is also given to train candidates from BPL strata of the
 society for which list of candidates is obtained by the centres from
 respective DRDA. Cumulatively these centres have conducted 588 training
 programmes since inception benefiting 20586 candidates.
 
 6.1.17. Financial Literacy & Credit Counselling (FLCC)
 
 Bank has established 2 FLCC centers in District Karnal and Palwal in
 the state of Haryana. These centres are being manned by counselors who
 provide preventive and curative debt counselling within the district.
 As on March 2011, 795 persons benefitted from the FLCC. Further 5
 seminars on preventive debt counselling were conducted.
 
 6.2.  Retail Credit
 
 Retail Credit segment continues to be the Thrust area of lending.  The
 Bank is having 10 Retail Credit Scheme including Home loans to meet the
 requirements of various sections of the society. Our Retail Credit
 Schemes are customer friendly, competitive and specifically designed to
 suit all sections of the society. The Bank has been formulating
 customized schemes and is also having tie- ups with various reputed
 builders and auto manufacturers to boost its Retail segment.
 
 6.3.  Education Loan
 
 The education loan portfolio of the Bank stood at Rs. 1102.44 crore as
 on 31.03.11 and showed Y.O.Y. Growth of 13.45%. Bank continued its
 efforts for extending education loans to students on soft terms &
 conditions and competitive rates besides 0.50% concessions in rate of
 interest is being given to girl students.  During the admission season,
 education loan camps were organized in the campus of the educational
 institutions.
 
 7.  TREASURY OPERATIONS:
 
 The G-Sec yields hardened across the curve owing to stubbornly higher
 inflation and tighter system liquidity. During the FY 2010-11, RBI
 raised Repo rates by 175 bps and Reverse Repo by 225 bps in a
 calibrated manner to reign in inflation and prevent inflationary
 pressure building in the economy. The Equity market remained positive
 on account of global economic recovery and strong growth reported by
 domestic companies. The secondary market turnover has been Rs.
 85,626.03 crore in FY 2010-11.The net profit in the secondary market
 operations has been Rs. 78.06 crores during the FY 2010-11. During the
 FY 2010-11 Bank has shifted government securities having book value Rs.
 1720.17 crores from Available for sale(AFS) category to Held to
 Maturity (HTM) category, and shifted securities having book value Rs
 962.34 crores from Held to Maturity (HTM) to Available for Sale (AFS)
 category, and in the process booked depreciation of Rs.  64.05 crores.
 The aggregate investments of the Bank have increased to Rs 42,153.04
 crores in FY 2010-11 from Rs 35785.32 crores last year, an increase of
 17.8%. The yield on investments has increased to 7.21% from 7.08% last
 year owing to rise in the yield of Fixed income securities in the
 investment portfolio.
 
 8.  MERCHANT BANKING ACTIVITIES:
 
 The Bank has been registered as Depository Participant with both NSDL &
 CSDL. More than 76,000 customers are availing the demat services of the
 Bank and PAN non-complaint zero balance accounts have been closed as
 per SEBI directive. The number of branches offering demat services has
 gone up to 307 during the year 2010-11. The Bank is also offering
 online trading services in collaboration with IDBI Capital Market
 Services Ltd. for its customers.
 
 During the fiscal year, the Bank raised Tier I Capital through issue of
 Innovative Perpetual Debt Instrument aggregating Rs.300 crore on
 private placement basis at the coupon of 9.05% p.a with a step up of 50
 bps after 10 years in case the call option is not exercised. The Bonds
 were allotted to 23 subscribers on 17.09.2010.
 
 During the fiscal year, the Bank also raised Tier II Capital through
 issue of Unsecured Redeemable Non-Convertible Subordinated Upper
 Tier-ll Bonds aggregating Rs.200 crore on private placement basis at
 the coupon of 8.68% p.a with a step up of 50 bps after 10 years in case
 the call option is not exercised. The Bonds were allotted to 6
 subscribers on 20.09.2010.  8.1 Applications supported by Blocked
 Amount (ASBA) Our Bank has been registered with SEBI as Self Certified
 Syndicate Bank (SCSB) for providing Applications Supported by Blocked
 Amount (ASBA) facility to its customers. ASBA is an application
 containing an authorisation to block the application money in the bank
 account maintained with SCSB.  Under the ASBA facility, the application
 amount for subscribing to an issue (IPO/Rights issue), remains in the
 bank account of the customer till allotment is finalized and actual
 amount equal to allotted shares is only debited instead of total
 application amount.  The Bank is providing ASBA offline facility
 through 552 authorized branches across the country. Online ASBA
 facility has also been started in March 2011 for internet banking
 customers.
 
 9.  FOREIGN EXCHANGE BUSINESS
 
 During the fiscal year 2010-11, Forex turnover increased to Rs.66912.60
 Crore as on 31.03.2011 as against Rs.49924 Crore as on 31.03.2010, thus
 registering a growth of 34.02%. The export credit of the bank stood at
 Rs.4507 Crore as on 31.03.2011 as against Rs.3963 Crore as on
 31.03.2010, thus registering a growth of 13.72%. During the year under
 review, 7 more branches were authorized to conduct foreign exchange
 business taking up such authorized branches to 94. The tie ups with
 exchange houses for Draft and Speed drawing arrangement has further
 increased from existing 2 to 6, which facilitates in garnering more &
 more NRI accounts and increase in remittance business. The total
 earning from foreign exchange business also registered a substantial
 increase from Rs.162.43 Crore for the year ended 31.3.2010 to Rs.225.63
 crore for the current financial year, registering a growth of 38.90 %
 over the preceding financial year.  The bank has mobilized non resident
 deposits to the tune of Rs.1755 Crore as on 31.03.2011. The operations
 at Representative Office at Dubai has completed its two years of
 operations, acting as catalyst to canvass non-resident accounts of
 Indian expatriates in UAE to expand the Non resident customer base of
 the bank. The fee-based products like Western Union Money Transfer have
 also shown growth during the preceding financial year.
 
 Bank also started selling the gold coins w.e.f. 30.10.2010 i.e. on the
 auspicious occasion of Dhanteras / Deepawali. Presently the Gold coins
 of different denominations are being sold from 68 locations spread all
 over India. This has supplemented the banks non-interest income.
 During the short span of 6 months bank earned Rs0.37 crore on sale of
 gold coins.
 
 10.  THIRD PARTY PRODUCTS:
 
 10.1 Life Insurance Business (JV):
 
 During April 2010 - March 2011 the Bank sold 42393 policies with First
 Premium Collection of Rs. 159.20 Crores and has earned commission of
 Rs. 35.56 Crores (Gross).
 
 10.2 General Insurance Business:
 
 Under General Insurance Business the Bank has been registering steady
 growth and has collected around Rs. 24.45 Crores as Premium collections
 and income by way of Commission at Rs.  3.09 Crores.
 
 10.3 Mutual Fund Business:
 
 The Bank has been selling the Mutual Fund products of the 6 Mutual Fund
 Houses. During the Financial year 2010-11 the Bank has sold Mutual Fund
 products and collected AUM of Rs. 62.14 Crores and earned income of Rs.
 31.07 Lacs under this segment.
 
 10.4 New Pension Scheme (NPS):
 
 Pension Fund Regulatory and Development Authority (PFRDA) has appointed
 the Bank as Points of Presence (POP) w.e.f.  01.05.2009 for the purpose
 of subscribing to New Pension Scheme (NPS) for all citizen of India.
 Total 251 branches have been selected to act as POP-SPs.
 
 10.5 Demat Accounts:
 
 The Bank is a Depository Participant for both NSDL and CDSL. It has
 more than 76,000 accounts under this category of Business and has
 recorded a revenue generation of Rs.4.34 Crores in this Financial year
 2010-11. The Bank has tied up with the IDBI Capital Market Services
 Ltd., and providing Online Trading facilities to its DEMAT Account
 holders through 289 identified Branches.
 
 10.6 Gold Coins:
 
 The Retail sale of Gold Coins in different denominations (5 grams, 8
 grams & 10 grams) was launched on 30.10.2010 through 83 branches in 12
 Regions. 5937 Gold Coins have been sold during the financial year
 2010-11.
 
 10.7 UID Cards:
 
 The Bank has entered into MOU with Unique Identification Authority of
 India (UIDAI) on 11.08.2010 as Registrar for issuing UID cards to its
 customers base of about 1.5 Crores, staff members and other citizens
 through our Branches. Approximate 66,300 UID cards got enrolled during
 the financial year 2010-11
 
 10.8 Cash Management Services (CMS):
 
 The Bank provides an efficient and tailor-made CMS solution to suit the
 customer requirements. The Bank is offering Collections, Payments and
 Custodial Services to the Customers under Cash Management Services. The
 Bank has coverage of more than 121 cities through own Branches and 500
 Locations through Correspondent arrangements offering CMS services to
 clients across the country. The Bank has registered a turnover of above
 Rs. 1351.07 Crores and earned Non-Interest income of Rs.1.38 Crore
 during the financial year of 2010-11.
 
 11.  BRANCH EXPANSION:
 
 During 2010-11, the Bank has opened 84 new branches besides up
 gradation of 28 extension counters. As on 31.03.2011, total number of
 branches stood at 1620 as against 1508 as on 31.03.2010. The population
 group-wise classification of branches as at end-March 2011 is as under:
 
 S.N.   Classification                 31.03.2011    31.03.2010
 
 1       Rural                            334            306
 
 2       Semi-Urban                       423            373
 
 3       Urban                            489            473
 
 4       Metro                            374            356
 
          Total                          1620           1508
 
 12.  CUSTOMER SERVICE:
 
 The Banks endeavor to provide excellent customer service has been
 through improving existing and innovating new services by leveraging
 the advanced technology platform of the bank. The bank has introduced,
 Mobile Banking (OBCmPAY), Internet Banking Services, International
 Proton Debit Card, SMS Banking service, Funds transfer through ATMs
 (only among accounts linked to ATM card), facility of Cheque Status
 Inquiry and Stop Payment of Cheques available 24x7 on Banks ATMs,
 deployment of Point of Sale (POS) Terminals at the identified
 prospective Merchant Establishments, Cheque deposit machines at some of
 the branches to facilitate cheque deposit with acknowledgment generated
 by the machine itself, online payment of service taxes etc. to provide
 efficient and effective service for delight of customers.
 
 For better customer service the online Education Loan, OBC-e- shoppe,
 OBC-e-taxes, online fee deposit, online Tax Accounting System(OLTAS)
 are some of the popular online products which the bank offers to its
 customers. The Bank also offers cash management product for corporate.
 Facility of speed clearing is available at selected centres. In view of
 urgent needs the third party withdrawal of cash through cheques at
 nonparent branches have been permitted upto certain limit, The Bank has
 launched Variable Progressive Deposit Scheme called Aadhar. The bank
 has services to meet the requirements of different groups like Old &
 sick, physically handicapped, visually impaired etc. to meet their
 needs.
 
 The Banks codes of commitment to customers are displayed on the Banks
 website for information and printed copies are available at branches
 for customers information.. A dedicated Customer Care Centre on toll
 free Number 1800-180-1235 has been set up for clarifying the customers
 account related and other queries.
 
 The website has a link Query & Suggestion for receiving customers
 feedback on the services of the bank for its examination and
 application wherever required.  Complaint/Suggestion Boxes are provided
 at branches where a customer can drop his complaint or suggestion and
 the customer can also make complaints through the banks website.  The
 Customers are invited at customer service meetings held regularly at
 Branches, Regional Offices and Head Office. The Bank emphasizes on the
 updation of knowledge of the staff on the banking products and services
 through continuous training to meet the requirements of the
 customers.The Bank is committed to provide excellent service for the
 customers maximum satisfaction and delight.
 
 13. KNOW YOUR CUSTOMER (KYC) NORMS & ANTI-MONEY LAUNDERING (AML)
 MEASURES:
 
 To comply with the various laws and regulations, national as well as
 international, Govt, of India and Reserve Bank of India directives /
 instructions & guidelines, primarily to prevent the bank from being
 used, intentionally or unintentionally, by criminal elements for money
 laundering activities, OBC KYC Policy has been formulated. The Policy
 combines four key elements viz.  Customer Acceptance Policy,
 Customer Identification Procedures, Monitoring of Transactions and
 Risk Management. This will enable the bank to know / understand the
 customers and their financial dealings better and shall further help in
 managing risks more prudently. The detailed guidelines and subsequent
 instructions are being reiterated from time to time for strict
 compliance by the field functionaries. The bank is already complying
 with the requirement of submission of statutory returns to the FIU-IND
 as a sequel to the new legislation on Prevention of Money Laundering
 Act-2002. The Bank has already operationalised Anti-Money Laundering
 software solution for complying with KYC Norms / AML Measures and
 generation of alerts to detect any suspicious transaction. Alerts are
 being scrutinized by us and STRs are being submitted to FIU-IND. Bank
 is also submitting all the required data/returns relating to
 KYC/AMLtothe regulatory bodies.
 
 14.  USE OF HINDI IN THE BANK:
 
 During the year 2010-11, Bank continued its concerted efforts to
 accelerate use of Hindi and to implement the guidelines/directives
 received from Govt, of India and Reserve Bank of India. Concrete and
 effective steps were taken to achieve the region wise targets set by
 the Department of Official Language, Ministry of Home Affairs, Govt, of
 India in the Annual Programme- 2010-11.
 
 Bank was awarded Second prize in A region under Reserve Bank
 Rajbhasha Shield Competition 2009-10 for Public Sector Banks /
 Financial Institutions for its excellent performance in the field of
 Rajbhasha Hindi. Regional Offices Delhi & New Delhi were awarded Third
 Prize for doing good work in Hindi and our Banks In-House Magazine
 AADHAAR was awarded Second Prize under Inter Bank Rajbhasha Shield
 Competition - 2009-10 by the Banks Town Official Language
 Implementation Committee, Delhi. Besides, our Regional Offices,
 Ludhiana & Jaipur were awarded First Prize by Banks Town Official
 Language Implementation Committees, Ludhiana & Jaipur respectively.
 
 Drafting & Evidence Sub-Committee of the Committee of Parliament on
 official Language held discussions on progress made in use of Hindi
 with the Branch Incumbents of our branch offices Coimbatore & Jhansi on
 13.09.2010 & 22.12.2010 respectively and appreciated the work being
 done in Hindi in the Bank.
 
 Bank continued its concerted efforts to promote use of Hindi in field
 of Information Technology. To provide banking facilities to customers
 in Hindi also by CBS branches, the bilingual Data Processing Software
 Script Magic was installed in the branches of the Bank. To facilitate
 work in Hindi in CBS environment various job cards were prepared in
 Hindi and made available on OBC web portal. Bank web site was updated
 in Hindi. For the convenience of the employees an English-Hindi Banking
 Glossary was provided online at OBC Web Portal. Training for use of
 Hindi on Computers was imparted to employees of the Bank.
 
 Banks e-circulars and Executives messages, policies, deposit / loan
 schemes, retail schemes, Power chart, Finacle menues, branch directory,
 ATM list etc. were prepared and uploaded on OBC web portal.
 Hindi-Fortnight was celebrated in different offices / branches of the
 Bank in month of September and various Hindi competitions for staff
 members were conducted. The winners were awarded certificates & prizes.
 Besides, our staff members won prizes in various Inter Bank
 competitions also conducted by different Banks.
 
 All the issues of Banks quarterly In-House Magazine AADHAAR were
 published regularly in bilingual form i.e. in Hindi and English.
 
 15.  RECOVERY:
 
 During the Financial Year 2010-11, concerted recovery efforts continued
 at all levels and consequently, the Bank could effect cash recovery of
 Rs.512.72 Crore. Out of cash recovery a sum of Rs. 179.59 Crore has
 been added to the Revenue of the Bank.  The bank has effectively
 utilized the various recovery mechanism e.g. holding recovery camps,
 Special One Time Settlement Schemes for NPAs with O/S upto Rs. 1.00
 Lakh which lasted upto 31.01.2011 and after that a New One Time
 Settlement Schemes for settlement of NPA accounts with O/S upto Rs.
 5.00 Lakh was floated which is valid upto 30.06.2011, Lok Adalat,
 taking action under SARFAESI Act-2002 and general settlement policy of
 the Bank. However, due to the impact of global recession, the NPAs of
 the Bank has increased in comparison to the previous financial year
 resulting in increase in Gross NPA percentage to gross advances to
 Rs.1.98% against 1.74% of corresponding year.
 
 The Bank is taking all possible steps to strengthen the recovery
 mechanism to minimize the higher delinquencies.
 
 16.  HUMAN RESOURCE DEVELOPMENT & TRAINING:
 
 The year 2010-11 witnessed the continuing effect of the economic
 turmoil of the past years with the Government and Regulators balancing
 the growth with inflation on the domestic front. The year also brought
 into the industry new recruitees in various cadres including
 specialists in Marketing, Agriculture, IT, Credit etc. There was
 compelling need to train them in various aspects of Banking to help
 them to settle down into their jobs with confidence and effectiveness.
 
 The training plan for the year 2010-11 was started on the premise that
 at least one training be given to each employee during the year. The
 Bank was able to meet this objective to a maximum extent. The focus of
 training during the year continued on the following areas:
 
 Credit Management, Risk Management, Forex Management, Customer
 Relationship Management, NPA & Recovery Management, General
 Banking/Induction Programmes for newly recruited Probationary Officers
 / Specialist Officers /Clerks, Management Development Programme for
 Executives, Soft Skills Development, Workshops on HRMS, CBS, SC/ST/OBC
 Reservation Policy etc.
 
 In 483 programmes 11544 employees were imparted training in the above
 streams and other areas of Banking. In addition, 1441 officers were
 nominated in Advanced Training Programmes in key operational and
 behavioural areas in pioneering institutions like NIBM, Pune, College
 of Agricultural Banking, Pune; IBA, Mumbai; MDI, Gurgaon; IDRBT,
 Hyderabad; NIBSCOM, Noida etc., to quote a few. Few Senior and Top
 management functionaries were deputed for overseas training for
 Management Development Programmes and to give exposure to International
 best practices and their impact in Indian Banking.
 
 During the year 2010-11, the Bank recruited 292 Probationary Officers,
 836 clerks, 467 Subordinate staff and 241 Specialist Officers in
 different grades and streams such as Manager (IT), Marketing Managers,
 Agriculture Officers etc., Further the process for recruitment of 500
 Probationary Officers, 1750 Clerks and 526 Officers in the Specialist
 cadre of Marketing, Credit, Forex, IT, Law, Agriculture, HRD etc is
 under way. The total staff strength as on 31st March, 2011 is 16618
 comprising of 8766 officers, 5527 Non-subordinates and 2671
 subordinates.  The Bank complied with Government guidelines in respect
 of reservation in recruitment and promotion for SC/ST/OBC/PWD/
 Ex-Servicemen in letter & spirit. The Bank recruited 911 SC/ST/OBC
 category personnel in Officer, Clerical & Subordinate cadres during the
 year. The grievances of SC/ST/OBC employees, if any, were resolved
 through SC/ST and OBC Cells created at all Regional Offices and at Head
 Office under the charge of Liaison Officers / Chief Liaison Officer.
 The Bank also launched a Special Drive to clear the backlog of SC/ST
 vacancies in promotion as per the guidelines of the Ministry of
 Finance, Govt.  of India and were able to fill 10 SC/ST backlog
 vacancies.
 
 BOARD OF DIRECTORS
 
 During 2010-11,13 meetings of Board of Directors, 20 meetings of
 Management Committee of Board, 10 meetings of Audit Committee of Board,
 were held.
 
 During the year, Sh.Nagesh Pydah, Chairman and Managing Director, took
 charge of the Bank on 01.01.11 after the superannuation of Sh.T Y
 Prabhu. Sh.V Kannan, Executive Director, joined the Board of the Bank
 on 01.12.2010 after the superannuation of Sh.H Rathnakara Hegde and
 Sh.B Srinivas, RBI Nominee Director appointed under Sec 9 (3) (c ) of
 the Banking Companies (Acquisition and Transfer of Undertakings) Act,
 1980 joinedthe BoardoftheBankon30.07.2010,asperhis notification. Sh. K
 H Pandey and Sh S.S Shishodia, joined the Board of the Bank on
 31.05.2010 and 21.07.2010 as Workmen Employee Director and Officer
 Employee Director respectively, appointed by Government of India Under
 Section 9 (3) (e) and Section 9 (3) (f) of the Banking (Acquisition and
 Transfer of Undertakings) Act, 1980.  DIRECTORS RESPONSIBILITY
 STATEMENT The Directors confirm that, in the preparation of the Annual
 Accounts for the year ended 31 st March, 2011
 
 (a) The applicable standards have been followed along with proper
 explanation relating to material departures, if any,
 
 (b) The accounting policies framed in accordance with the guidelines of
 the Reserve Bank of India, were consistently applied,
 
 (c) reasonable and prudent judgment and estimates were made so as to
 give true and fair view of the state of affairs of the Bank at the end
 of financial year and of the profits of the Bank for the year ended on
 31st March, 2011,
 
 (d) proper and sufficient care was taken for the maintenance of
 adequate accounting records in accordance with and provisions of
 applicable laws governing banks in India and the accounts have been
 prepared on a going concern basis.
 
 ACKNOWLEDGEMENTS
 
 The Board of Directors thanks Government of India, Ministry of Finance,
 Department of Economic Affairs and Reserve Bank of India and other
 Governments & Regulatory Agencies for their valuable guidance and
 continued support provided to the Bank through out the year. The Board
 of Directors are also grateful to the valued customers, esteemed
 shareholders, stakeholders and public at large for their patronage and
 confidence reposed in the Bank. The Board of Directors place on record
 their great appreciation of the commitment, sense of involvement and
 dedication exhibited by each staff member in the overall development,
 growth and prosperity of the Bank and look forward to their continued
 support and whole-hearted co-operation for realization of the corporate
 goals in the year ahead.
 
                                  For and on behalf of the Board
 
 New Delhi                                        (Nagesh Pydah)
 
 29th April 2011                    CHAIRMAN & MANAGING DIRECTOR