1.  Investments amounting to Rs 4940.00 crores (previous year Rs 2720.00
 crores) are kept as margin with the Reserve Bank of India/Clearing
 Corporation of India Limited towards Real Time Gross Settlement
 (RTGS)/REPO/CBLO transactions.
 
 2.  (a) In respect of premises having gross value of Rs 0.42 crore
 (Previous year: Rs 0.42 crore) pending completion of certain legal
 formalities/ procedural actions, title deeds are yet to be executed/
 registered in favour of the Bank.  (b) Fixed Assets : Gross Value of
 fxed assets ( other than premises) includes Rs 70.63 crores (previous
 year Rs. 64.25 crores ) representing 10% of Bank''s share jointly owned
 by State Bank of India and other Associate Bank''s amounts to Rs 706.47
 Crores (previous year Rs. 642.62 crores)
 
 3.  In terms of the RBI guidelines on provision for the sacrifce amount
 on restructured / rescheduled advances, erosion in fair value of
 advances has been provided amounting to Rs 36.13 crores (previous year Rs
 43.19 crores).
 
 4.  Pursuant to the guidelines of the RBI in respect of Agriculture
 Debt Waiver and Debt Relief Scheme 2008 :
 
 a) The bank has made a fnal claim from the Government of India for Rs
 14.00 Crores towards waiver of Debts and Rs 22.63 Crores towards Debt
 Relief. The entire amount Rs 36.63 crores is received from Government of
 India during the year.
 
 b) A sum of Rs 38.50 Crore toward Interest from the Government of India
 in respect of balance amount of claims towards debt waiver and debt
 relief for the period 16.12.2008 to 28.01.2012 received and taken as a
 income during the year.
 
 5.  To augment Tier I Capital of Bank, a right issue of 2,00,00,000
 equity shares at a price of Rs 390/- per share including a premium of Rs
 380/- aggregating Rs 780.00 crore to the existing share holders on right
 basis in the ratio of 2 right equity shares for every 5 equity shares
 was issued. Consequently, the Capital and Share Premium Account of the
 Bank has been increased by Rs 20 crores and Rs 760 crores respectively.
 
 6.  The Board of Directors have declared an interim dividend of 145%
 i.e. Rs 14.50 per share ( face value of share Rs 10/- per share) during
 the FY 2011-12.
 
 7.  Unamortised pension and Gratuity Liabilities
 
 During the FY 2010-11, the Bank has incurred a liability amounting Rs
 384.45 Crores on account of reopening of pension option Rs 234.45 Crores
 and enhancement of Gratuity Ceiling Rs 150.00 crores. The Bank has
 amortised the said liability over a period of fve years commencing from
 FY 2010-11 in terms of RBI circular no. DBOD.BP.BC.80/21.04.018/2010-
 11 dated 9th February 2011. Accordingly, Rs 76.89 Crores (Representing
 one ffth of Rs 384.45 Crores) has been charged to Proft & Loss Account
 during the current FY 2011-12. The detailed break-up is as under:-
 
 iii) The value of sales and transfer of securities to/from HTM category
 does not exceeds 5% of the book value of Investments held in HTM
 category at the beginning of the year.
 
 8.  Derivatives
 
 Qualitative Disclosure
 
 a.  The Bank has well defned structure and organization for management
 of risk in derivatives, with clear role of Front, Mid and Back offce
 for Risk Management.
 
 b.  For risk measurement and monitoring, Integrated Risk Management
 Department is periodically monitoring risk on account of outstanding
 forward contracts and outstanding forward contracts of top 20 borrower
 account is advised to the user department.
 
 c.  Bank is not undertaking Exchange Traded Interest Rate Derivatives
 and Forward Rate Agreement/ Interest Rate Swaps
 
 d.  Bank is not undertaking any trading in derivative transaction in
 its own account. The Bank undertakes Forward contracts with counter
 parties only on behalf of its constituents in order to hedge their on
 balance-sheet/ off- balance-sheet assets and liabilities as per the RBI
 directives.
 
 e.  Forward contracts so booked are covered back to back with counter
 parties.
 
 f.  All outstanding forward contracts are marked to market as per the
 RBI directives and are shown in the balance- sheet as contingent
 liabilities.
 
 9.  Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL)
 exceeded by the bank
 
 The Bank has not exceeded the Single Borrower Limit and Group Borrower
 Limit during the year.
 
 10.  Draw Down from Reserves
 
 There has been a draw down of Rs.11.12 crores (previous year Rs 1.70
 crores) from Investment Reserve during the year.
 
 11.  AS-5 (Net Proft or Loss for the period, prior period items and
 changes in accounting policies)
 
 There are no material prior period income/expenditure items require
 disclosure under AS-5.
 
 12.  AS- 9 Revenue Recognition
 
 In line with the Accounting Policy followed, items of income /
 expenditure accounted on cash basis are considered not material, in
 terms of RBI guidelines, hence do not require disclosure.
 
 13.  AS - 15 Employee Benefts (Revised 2005)
 
 1) Defned Beneft Pension Plan and Gratuity
 
 a) The following table sets out the status of the defned beneft Pension
 Plan and Gratuity Plan as required under AS 15:
 
 14.  AS-17 : Segmental Reporting
 
 In terms of RBI Cir. No. BP.BC.81/21.04.018/2006-07 dated 18th April
 2007, the Bank has identifed following segments as Primary / Business
 Segment:
 
 (a) Treasury Operations
 
 (b) Corporate/Wholesale Banking
 
 (c) Retail Banking
 
 (d) Other Banking Operations
 
 pricing of Inter-segmental transfers:
 
 The Corporate / wholesale Banking and Retail Banking Operations are the
 primary resource mobilizing unit. The treasury segment receives funds
 from the other two Banking Operations unit at a cost, which is computed
 on cost of deposits of Other Banking Operations plus operating expense
 incurred for mobilizing funds.
 
 Allocation of Income and Expenses and Assets/Liabilities:
 
 a) Income and Expenses and Assets/Liabilities directly attributed to
 particular segment are allocated to the relative segment.
 
 b) Items that are not directly attributable to segments are allocated
 to retail and wholesale segments in proportion to the business managed
 / ratio of number of employees/ ratio of directly attributable income.
 
 The bank has certain common assets /liabilities and income / expense
 that cannot be attributed to any particular segment and hence the same
 are treated as unallocated.
 
 PART B: GEOGRAPHIC SEGMENT
 
 The entire Indian Operations are being treated as a single reportable
 segment and hence secondary / geographic segment is not considered
 necessary.
 
 15.  AS-18 : Related party disclosures
 
 As per para 9 of the Accounting Standard 18 issued by the ICAI on
 Related party disclosures the Bank, being a state controlled
 enterprise is not required to make disclosures of related party
 relationships with other state controlled enterprises and transactions
 with such enterprises. However, the Bank has considered the following
 as related parties for the purpose of disclosure under AS-18 issued by
 the ICAI:
 
 16.  AS-19: Leases:
 
 The company''s signifcant leasing arrangements are in respect of
 operating leases for premises like operational units, offces,
 residences etc. These leases, which are not non-cancelable are
 generally for more than one year or for longer periods (except expired
 leases) and are usually renewable by mutual consent on mutually
 agreeable terms. The aggregate lease rentals payable are charged as
 rent to P&L accounts.
 
 17.  AS-24: Discontinuing Operations
 
 There has been no discontinuation of operations that has resulted in
 shedding of liability and realization of the assets by the Bank or
 decision to discontinue an operation, which will have the above effect,
 has been fnalized by the Bank.
 
 18.  AS-26: Intangible Assets
 
 There are no intangible assets except Software forming integral part of
 hardware included under Fixed Assets amounting to Rs. 0.97 crore ( prev.
 Year Rs. 0.58 crore)
 
 19.  AS-28: Impairment of Assets
 
 In the opinion of the Management, there is no impairment to the Assets
 during the year to which Accounting Standard 28 - Impairment of
 Assets applies.
 
 20.  AS-29: Statement of provisions, Contingent liability & Contingent
 Assets
 
 21.  Previous year''s fgures have been regrouped and reclassifed
 wherever necessary to make these comparable with the current year''s
 fgures.