1) Registration / Execution of documents, in favour of the Bank is yet
 to be completed, in respect of certain premises costing Rs. 11.71
 crores (previous year Rs. 12.33 crores) for which adequate steps have
 been initiated and title deeds of properties costing Rs. 2.10 crores
 (previous year Rs7.24 crore) is yet to be collected from Registration
 office.
 
 2) In the absence of information as to the realizable value of
 securities in certain advances, the value as per records has been
 considered.
 
 3) Interest accrued but not due on term deposits has been included
 underthe relevant deposits.
 
 4) PROPOSED DIVIDEND
 
 Proposed Dividend @104% on the paid up capital has been provided for.
 This is subject to approval from Regulatory Authorities in pursuance of
 section 15 & 17 of Banking Regualation Act 1949.
 
 5) PROVISION FOR TAXATION
 
 The provision for current income tax for the year ended March 31, 2011
 Rs. 550.94 crores (previous year Rs. 537.20 crores) has been made as
 per the applicable enactments, judicial pronouncements and legal
 opinions.
 
 Pending final outcome of the appeals filed by the bank/income tax
 authorities, disputed tax liabilities (including interest), for various
 assessment years, amounting to Rs.  203.14 crores (previous year Rs.
 212.63 crores) are shown in Schedule 12 under Contingent Liabilities.
 The bank believes that these demands are largely unsustainable and will
 eventually be set aside. Accordingly, no provision has been made
 against the said disputed liabilities and payments/adjustments to the
 extent made against these demands have been included in Schedule 11
 under Other Assets as Income Tax Recoverable.
 
 6) Balancing of books, confirmation /reconciliation and clearance of
 outstanding entries in Suspense, Sundries, Clearing Adjustment, Demand
 Drafts, Bills for Collection, Accounts with other Banks including
 NOSTRO accounts, Exchange Houses Accounts and Inter Branch accounts are
 in progress. Impact, if any, shall be accounted / adjusted on
 balancing/reconciliation thereof. However, Inter-branch accounts have
 been reconciled up to the period specified by Reserve Bank of India.
 
 d) In respect of investments under Held to Maturity category; the
 premium amount amortized during the year is Rs. 92.97 crores (previous
 year Rs. 83.21 crores) and the same has been accounted for in Schedule
 No. 13 under the head Interest Earned as deduction from income on
 investments.
 
 e) Provision for Depreciation on investments:
 
 Provision for depreciation on investments under Available for Sale
 and Held for Trading categories as on March 31, 2011, is Rs. 78.28
 crore (previous year nil).
 
 f) The Bank has transferred Securities aggregating to Rs.  1720.17
 crores (previous year Rs. 1271.48 crores), from Available for Sale
 category to Held to Maturity category and Rs. 962.34 crores from Held
 to Maturity category to Available for Sale category (previous year
 979.59 crores) during the year in accordance with the RBI guidelines.
 The Mark to Market depreciation on shifting of above mentioned
 securities was Rs. 64.05 crores (previous year Rs. 137.76 crores), and
 the same has been debited to Profit and Loss Account.
 
 g) During the financial year 2010-11 Bank has invested Rs.  46.00
 crores (previous year Rs. 23.00 crores) towards capital contribution in
 joint venture Company for Life Insurance Business with Canara Bank and
 HSBC under the name and style of Canara HSBC Oriental Bank of Commerce
 Life Insurance Company Limited. The total capital outstanding as on
 31.03.2011 is Rs. 161.00 crores (previous year Rs. 115.00 crores),
 which amounts to 23% capital contribution by the bank.
 
 The said investment made by the Bank has been classified under Held to
 Maturity category under the head investment in joint ventures, as the
 intention is to hold as joint venture investment although the holding
 is less than 25% as required under RBI norms. In the opinion of the
 management the impact in the value of the said investment on account of
 initial losses is not permanent in nature and hence no provision is
 considered necessary.  9) DERIVATIVES
 
 The Bank has undertaken Derivative Transactions viz.  Interest Rate
 Future, Currency Futures and Interest Rate Swap (OIS) during the year.
 There is no outstanding in respect of Interest Rate Future and Interest
 Rate Swap (OIS) as on 31-3-2011. However, there is an outstanding
 position in currency future which is covered in interbank market as on
 31-3-2011. Also, transactions under Foreign Exchange Forward Contracts
 have been undertaken on behalf of various clients and outstanding as on
 date is Rs. 31,603.66 crores (previous year Rs26128.96 crores).
 
 c) Qualitative disclosure:
 
 Operations in the Treasury Department are segregated into three
 functional areas, i.e. Front Office, Mid Office and Back Office
 equipped with necessary infrastructure and trained Officers, whose
 responsibilities are well defined.
 
 The Treasury Policy of the Bank clearly lays down the types of
 financial derivative instruments, scope of usage, approval process.
 Derivative transactions contain interest rate risk, counterparty risk,
 market risk, currency risk, settlement risk, open position risk and
 operational risk. Treasury Policy clearly specify the internal control
 limits like open position limits, deal size limits, stop-loss limits,
 deal initiating authority for trading/hedging in approved instruments
 to contain the risk and maximize return on the derivative transactions.
 
 The mid office monitors the transactions in the trading books and also
 measures the financial risks for the transactions in the trading book
 on a daily basis by way of calculating Mark to market (MTM) of
 positions. Daily MTM position is reported to the Investment Committee.
 
 The Bank also has a policy for hedging its balance sheet exposures. The
 treasury policy of the Bank spells out the approval process for hedging
 the exposures. The hedged transactions are monitored on a regular
 basis.
 
 The hedging/trading transactions are recorded separately. The hedge
 transactions are accounted for on accrual basis. All trading contracts
 are market to market and resultant gross loss is accounted for ignoring
 the gain on a prudence basis.
 
 The Bank is Trading & Clearing Member of three exchanges viz.  National
 Stock Exchange (NSE), MCX-SX Stock Exchange (MCX-SX), United Stock
 Exchange (USE) for currency futures .  /interest rate futures. The Bank
 undertakes proprietary trading in currency futures, interest rate
 futures & interest rate swaps. The Bank has set up the necessary
 infrastructure for Front, Mid and Back Office operations, daily mark to
 market (MTM) and margin obligations are settled with the exchanges as
 per guidelines issued by the regulators.
 
 Treasury Policy has been drawn up in accordance with RBI guidelines
 
 *The above figures include the effect of floating provisions of Rs.
 72.00 crores, made by the bank towards NPA portfolio of the bank as on
 31.3.2009 and the same is retained as on 31.03.2011 also.  Net NPA is
 arrived at after adjusting ECGC/DICGC claims settled and provisions on
 NPAs.
 
 The Provisioning Coverage Ratio (PCR) for the Bank as on 31.03.2011 is
 Rs 76.79% (previous year 76.74%), which is calculated taking into
 account the total technical write offs.
 
 Provision includes provisions made above the prescribed rates where
 ever necessary.
 
 11) Government of India notified Agriculture Debt Waiver & Debt Relief
 Scheme, 2008(Scheme) for giving debt waiver to marginal & small
 farmers and relief to other farmers who have availed direct agriculture
 loans. Out of the total claim lodged for Rs.370.08 crores in respect of
 Debt Waiver, the
 
 Bank has received Rs.243.39 crores till last year & the balance amount
 of Rs. 126.69 crores has been received during the current financial
 year as full and final settlement from the Government of India.
 
 In respect of Debt Relief, the Bank has received a sum of Rs.82.81
 crores during the current financial year on account of one time
 settlement scheme under Debt Relief. A separate claim of Rs. 11.17
 Crore in respect of debt relief cases settled during the period
 01.01.2010 to 30.06.2010 (including cases settled through grievances
 redressal mechanism operating from 01.02.2010 to 31.07.2010) under
 Additional Final Claims-Debt Relief- Not eligible for interest, duly
 certified by Central Statutory Auditors has been lodged to Reserve Bank
 of India on 02.02.2011 which is pending to be received from Government
 of India.
 
 17) COMPLIANCE WITH ACCOUNTING STANDARDS (AS) ISSUED BY THE INSTITUTE
 OF CHARTERED ACCOUNTANTS OF INDIA.
 
 a) Accounting Standard AS-5 - Net Profit or Loss for the Period, Prior
 Period Items and Changes in Accounting Policies:
 
 Prior period expenses included in Other Expenditure under schedule 16
 is Rs.7.14 crore(previous year 2.67 Crores). Prior period income
 included in Other Income under schedule 14 is Rs.3.30crore (previous
 year Rs.0.68 Crores).
 
 b) Accounting Standard AS-9-Revenue Recognition:
 
 As per Accounting Policy No. 1(b), certain items of income are
 recognized on cash basis on account of statutory requirements or
 materiality.
 
 c) Accounting Standard AS-15 - Employee Benefits:
 
 The Bank is following AS-15 (revised 2005) Employee Benefits. The
 defined employee benefit schemes are as under:-
 
 I.  Provident Fund
 
 The Bank pays fixed contribution to Provident Fund at predetermined
 rates to a separate Trust, which invests the funds in permitted
 securities. The contribution to the fund for the period is recognized
 as expense and is charged to the profit & loss account. The obligation
 of the Bank is limited to such fixed contribution.
 
 II.  Gratuity
 
 The Bank has a defined benefit gratuity plans for Officers who have
 joined / become Officer before 01/01/1983, Other Officers and Workman.
 Every Officer / workman who have rendered continuous services of five
 years or more is eligible for Gratuity, subject to a maximum of 20
 months on superannuation, resignation, termination, disablement or on
 death. The scheme is funded by the bank and is managed by a separate
 Trust. The liability for the same is recognized on the basis of
 actuarial valuation.
 
 III.  Pension.
 
 The Bank has a defined benefit pension Plan. The plan applies to
 existing employees of the bank as on 29/09/1995 who have opted for the
 pension scheme and to all employees joining, thereafter. The scheme is
 managed by a separate Trust and the liability for the same is
 recognized on the basis of actuarial valuation.
 
 IV Other Defined Retirement Benefits (ODRB)
 
 Other Defined Retirement Benefits (ODRB) include settlement at home
 town for employees and dependents and post retirement medical benefit
 for CMD & ED. These are unfunded and are recognized on the basis of
 actuarial valuation.
 
 PENSION
 
 During the year, the Bank has reopened the pension option for its
 employees who had not opted for the pension scheme (II Pension option).
 As a result of exercise of which by 7888 employees the bank has
 incurred a liability of Rs. 1005.35 Crores.  In terms of the
 requirements of the Accounting Standard (AS) 15, Employee Benefits, the
 entire amount of Rs.1005.35 Crores is required to be charged to the
 Profit and Loss Account. However, the Reserve Bank of India has issued
 a circular no.  DBOD.BP.BC.80/21.04.018/2010-11) on Re-opening of
 Pension Option to Employees of Public Sector Banks and Enhancement in
 Gratuity Limits - Prudential Regulatory Treatment, dated 9th February
 2011. In accordance with the provisions of the said Circular, the Bank
 may amortise the amount of pension over a period of five years for
 second pension optees who are existing employees of the Bank and charge
 the full amount of pension with respect to II Pension optees who have
 retired/separated from the Bank. Accordingly, the Bank has charged the
 following to the profit and loss account with respect to II pension
 liability:
 
 In terms of requirements of the aforesaid RBI circular, the balance
 amount carried forward i.e Rs. 683.60 crore (Rs. 854.50 crore minus Rs.
 170.90 crore ) does not include pension liability for any employees who
 have retired/separated from the bank.  Had such a circular not been
 issued by the RBI, the profit of the bank would have been lower by Rs.
 683.60 Crores pursuant to application of the requirements of AS 15.
 
 Gratuity
 
 During the yearthe limit of gratuity payable to the employees of the
 bank was enhanced pursuant to the amendment to Payment of Gratuity Act,
 1972. As a result the gratuity liability of the bank increased by Rs.
 137.56 Crores. The said increased liability has been charged to the
 profit and loss account in terms of the requirements of the Accounting
 Standard (AS) 15, Employees Benefits.
 
 d) Accounting Standard AS-17 - Segment Reporting: i) The Business
 Segments, which is the Primary Segment include:
 
 - Treasury Operations
 
 - Corporate/Wholesale Banking
 
 - Retail banking
 
 - Other banking business operations
 
 ii) The Geographical segments are recognized as the Secondary Segment.
 As the Bank is not carrying on any foreign operations, the only
 reportable geographical segment is of Domestic operations.
 
 - Treasury Operations: Treasury operations consist of dealing in
 securities and Money Market Operations
 
 - Corporate / Wholesale Banking: Includes all advances to trusts,
 partnership firms, companies and statutory bodies which are not
 included under Retail Banking
 
 - Retail Banking: The exposure up to Rs. 5.00 Crores to
 
 individual , HUF, Partnership firm .Trust, Private Ltd.  Companies,
 public ltd. Companies , Co-operative societies etc. or to a small
 business is covered under retail banking. Small business is one where
 average of last three years annual turnover (Actual for existing &
 projected for new entities) is less than Rs.50 crores.
 
 - Other banking business operations: Includes all other Banking
 operations not covered under Treasury, Wholesale Banking and Retail
 banking Segments.  Other banking business is the residual category.
 
 iii) The segment revenue from treasury operations is shown after
 interest on average inter-segment funds used in Treasury Operations.
 The interest has been charged at the rate of Cost of Funds i.e.
 percentage of total interest expended to average working funds for the
 year.
 
 e) Accounting Standard AS-18 - Related Party disclosures:
 
 i) Details pertaining to Related Party Transactions in respect of key
 managerial personnel of the Bank are as follows:-
 
 1.  Shri. Nagesh Pydah - Chairman & Managing Director (forthe period
 01.01.2011 to 31.03.2011).
 
 2.  Shri S. C. Sinha - Executive Director.
 
 3.  Shri V. Kannan - Executive Director (for the period
 01.12.2010to31.03.2011).
 
 4.  Shri T. Y. Prabhu- Ex. Chairman & Managing Director (forthe period
 01.04.2010 to 31.12.2010).
 
 5.  Shri H. Rathnakara Hegde - Ex. Executive Director (for the period
 01.04.2010 to 30.11.2010).
 
 6.  Canara HSBC
 
 ii) Remuneration paid to Chairman & Managing Director and Executive
 Directors is Rs.0.17 crores and Rs 0.34 crores respectively (previous
 year Rs.0.22 crores and Rs 0.31 crores respectively). -
 
 iii) Canara HSBC Oriental Bank of Commerce Life Insurance Company
 Limited -(Associate)
 
 f) Accounting Standard AS-19-Leases:
 
 The Bank has taken various premises under operating lease with varying
 lease periods.
 
 h) Accounting Standard 22-Accounting for Taxes on Income:
 
 The bank has complied with the requirements of AS 22 on Accounting for
 Taxes on Income issued by ICAI and accordingly deferred tax assets and
 liabilities are recognized. The net balance of deferred tax asset as on
 31.03.2011 amounting to Rs 41.00 crores (Previous year Deferred tax
 asset Rs. 24.00 crores) consists of following:
 
 i) Accounting Standard-28 Impairment of Assets:
 
 The banks assets substantially comprise of financial assets, which are
 not covered by AS-28 Impairment of Assets. In the opinion of banks
 management there is no impairment in the value of its non financial
 assets in terms of said Accounting Standard.
 
 j) Accounting Standard - 29 on Provisions, Contingent Liabilities and
 Contingent Assets:
 
 Contingent Liabilities as stated in Schedule 12 [clause (i) and (vi)
 ]to the accounts are dependent on the outcome of court cases / disposal
 of appeals filed before various authorities / out of court settlement
 and other development if any. No reimbursement is expected in respect
 of items Nos. (i)and (vi)of said schedule.
 
 18) Fees/ Remuneration received in respect of bancassurance business
 undertaken by the Bank is Rs.36.99 Crores.(previous year Rs.34.82
 Crore)
 
 19) Amalgamation of erstwhile Global Trust Bank Ltd. with Oriental Bank
 of Commerce:
 
 The erstwhile Global Trust Bank Ltd. (eGTB) was amalgamated with the
 Bank as per the scheme of amalgamation notified by the Government of
 India, Ministry of Finance, Dept. of Economic Affairs (Banking
 Division) the Scheme. As per the Scheme, the business, properties,
 assets and liabilities of eGTB stand transferred to the Bank with
 effect from August 14,2004, the prescribed date.  The Bank has
 incorporated gross Not Readily Realisable Advances of Rs. 1,285.26
 crores, a provision of Rs. 821.16 crores there against and Not Readily
 Realisable Assets comprising of Income-tax paid amounting to Rs 41.21
 crores against disputed demands, in the books of the Bank along with
 assets and liabilities of eGTB as valued and determined in terms of the
 Scheme. The Bank has decided to maintain memorandum records for
 ascertaining the ultimate realization against the Not Readily
 Realizable Assets taken over. In the event of the ultimate realization
 from the Not Readily Realizable Assets, over and above the value at
 which they are taken over, exceeding the Excess of liabilities over
 assets taken over, the surplus after adjustment of expenses, etc. will
 be distributed to the erstwhile shareholders of eGTB after a period of
 twelve years or earlier as prescribed under the scheme.
 
 23) Previous years figures have been re-grouped/re- arranged/recast
 wherever considered necessary.