1.  We have audited the attached Balance Sheet of STATE BANK OF BIKANER
 AND JAIPUR as at 31st March, 2012, the Proft and Loss Account and the
 Cash Flow Statement of the Bank for the year ended on that date,
 annexed thereto, and in which are incorporated the returns of 20
 branches and 26 offces audited by us, 806 branches and 34 Processing
 Centres audited by branch auditors and unaudited returns in respect of
 124 branches/offces. These unaudited branches account for 0.87 per cent
 of advances, 2.27 per cent of deposits, 0.51 per cent of interest
 income and 1.93 per cent of interest expenses. The branches audited by
 us and those audited by other auditors have been selected by the Bank,
 in accordance with the guidelines issued by the Reserve Bank of India.
 These Financial Statements are the responsibility of the Bank''s
 Management. Our responsibility is to express an opinion based on our
 audit.
 
 2.  We conducted our audit in accordance with the auditing standards
 generally accepted in India. Those standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 fnancial statements are free of material misstatement. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and disclosures in the fnancial statements. An audit also includes
 assessing the accounting principles used and signifcant estimates made
 by the management, as well as evaluating the overall fnancial statement
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 3.  The Balance Sheet and the Proft & Loss Account have been drawn up
 in forms ''A'' and ''B'' respectively of the Third Schedule to the Banking
 Regulation Act, 1949, and they give the information as required to be
 given in accordance with the provisions of the State Bank of India
 (Subsidiary Banks) Act, 1959 and regulations made there under.
 
 4.  Subject to the limitations of the audit as indicated in para 1
 above and as required by the State Bank of India (Subsidiary Banks)
 Act, 1959, and regulations mentioned therein and also subject to the
 limitations of disclosure required therein, we report as under :- a) We
 have obtained all the information and explanations, which to the best
 of our knowledge and belief, were necessary for the purpose of our
 audit and have found them to be satisfactory.
 
 b) The transactions of the Bank, which have come to our notice, have
 been within the powers of the Bank.
 
 c) The returns received from the offces and branches of the Bank have
 generally been found adequate for the purpose of our audit.
 
 5.  In our opinion, the Balance Sheet, Proft and Loss Account and Cash
 Flow Statement comply with the applicable Accounting Standards.
 
 6.  In our opinion and to the best of our information and according to
 the explanations given to us and as shown by the books of the Bank :-
 
 i) The Balance Sheet read together with the Principal Accounting
 Policies and Notes thereon, is full and fair Balance Sheet containing
 all the necessary particulars and is properly drawn up so as to exhibit
 a true and fair view of the state of affairs of the Bank as at 31st
 March, 2012 in conformity with the accounting principles generally
 accepted in India.
 
 ii. The Proft and Loss Account read together with the Principal
 Accounting Policies and Notes thereon shows a true balance of the proft
 for the year ended on that date in conformity with the accounting
 principles generally accepted in India.
 
 iii.  Their sh fow statement gives a true and fair view of the cash
 fows for the year ended on that date.
 
 7.  Emphasis of matter :
 
 Without qualifying our opinion, we draw attention to Note No.7 to the
 fnancial statements, which describe the deferment of Pension and
 Gratuity Liability of the Bank to the extent of Rs 230.67 crores
 pursuant to the exemption granted by the Reserve Bank of India to the
 Public Sector Banks from application of the provisions of Accounting
 Standards (AS) 15, Employees Benefts vide its circular
 No.DBOD.BPBC/80/21.04.018/2010-11 on reopening of Pension option to
 Employees of Public Sector Banks and enhancement in Gratuity Limits –
 Prudential Legal Treatment.
 
 For S. DAGA & CO.      For S.C.J. ASSOCIATES      For B. khOSLA & CO.
 
 Chartered Accountants  Chartered Accountants      Chartered Accountants
 
 (CA ShANTI LAL DAGA)  (CA S.C. JAIN)             (CA VIJAY k. JAIN)
 
 (M.No. F-11617)       (M. No.070138)             (M. No.070758)
 
 PARTNER                PARTNER                    PARTNER
 
 Firm Reg. No.000669 S  Firm Reg. No. 003131 C     Firm Reg. No. 000205 C
 
 For S.L. ChhAJED & CO. For L.U. kRIShNAN & CO.    For AGARwAL ANIL & CO.
 
 Chartered Accounta     Chartered Accountants      Chartered Accountants
 
 (CA ABhAY ChhAJED)    (CA p.k. MANOJ)            (CA ANIL AGRAwAL)
 
 (M. No.079662)        (M. No.207550)             (M. No. 082103)
 
 PARTNER                PARTNER                    PARTNER
 
 Firm Reg. No. 
 
 000709 C               Firm Reg. No. 001527 S     Firm Reg.No.003222 N
 
 MUMBAI, 
 April 20, 2012