State Bank of India

1.  We, the undersigned Auditors of State Bank of India, appointed
 under Section 41(1) of the State Bank of India Act, 1955, do hereby
 report to the Central Government upon the Balance Sheet, Profit & Loss
 Account and the Cash Flow Statement of the Bank.
 
 2.  We have audited the attached Balance Sheet of State Bank of India
 as at 31st March 2009, the Profit & Loss Account and the Cash Flow
 Statement of the Bank for the year ended on that date annexed thereto.
 Incorporated in the said financial statements are the accounts of:
 
 i) The Central Office, fourteen Local Head Offices, Corporate Accounts
 Group (Central), Mid-Corporate Group (Central), Stressed Assets
 Management Group (Central) and forty two branches audited by us;
 
 ii) 9255 Indian Branches audited by other auditors;
 
 iii) 40 Foreign Branches audited by the local auditors; and
 
 iv) 2504 other Indian Branches, the unaudited returns of which are
 certified by the Branch Managers. These unaudited branches account for
 0.54% of advances, 2.11% of deposits, 0.44% of interest income and
 1.45% of interest expenses.
 
 These financial statements are the responsibility of the Bank’s
 Management. Our responsibility is to express an opinion on these
 financial statements based on our audit.
 
 3.  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
 financial statements are free of material misstatement. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and disclosures in the financial statements. An audit also includes
 assessing the accounting principles used and significant estimates made
 by the Management, as well as evaluating the overall financial
 statement presentation. We believe that our audit provides a reasonable
 basis for our opinion.
 
 4.  The Balance Sheet and the Profit & Loss Account have been drawn up
 in Forms ‘A’ and ‘B’ respectively of the Third Schedule to the Banking
 Regulation Act, 1949 and these give information as required to be given
 by virtue of the provisions of the State Bank of India Act, 1955, and
 Regulations there under.
 
 5.  We report, read with paragraph 2 above:
 
 (a) We have obtained all the information and explanations which to the
 best of our knowledge and belief, were necessary for the purposes 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 offices and branches of the Bank have
 been found adequate for the purposes of our audit.
 
 6.  In our opinion, the Balance Sheet, Profit and Loss Account and Cash
 Flow statement comply with the applicable accounting standards.
 
 7.  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 with the Principal Accounting Policies and
 the Notes to Accounts, is a 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 state of affairs of the Bank as at 31st March
 2009;
 
 (ii) the Profit and Loss Account, read with the Principal Accounting
 Policies and the Notes to Accounts, shows a true balance of Profit for
 the year ended on that date; and
 
 (iii) the Cash Flow Statement gives a true and fair view of the cash
 flows for the year ended on that date, and are in conformity with the
 Accounting Principles generally accepted in India.
 
 For V. K. Jindal & Co.
 Chartered Accountants
 
 V. K. Jindal
 Partner
 M. No.  070666
 
 For Gupta & Shall
 Chartered Accountants
 
 Sharad Shah
 Partner   
 M. No.  070601
 
 For Chokshi & Chokshi
 Chartered Accountants
 
 Kanu Chokshi
 Partner   
 M. No.  17085
 
 For Vardhaman & Co.
 Chartered Accountants
 
 V.  Baskaran
 Partner          
 M. No.  012202
 
 For D. P. Sen & Co.
 Chartered Accountants
 
 M. L.  Sarkar
 Partner:          
 M. No.  012961
 
 For Dutta Sarkar & Co.
 Chartered Accountants
 
 B. K. Dutta
 Partner          
 M. No.  16175
 
 For Guha Nandi & Co.
 Chartered Accountants
 
 Dr. B. S. Kundu
 Partner      
 M. No.  051221
 
 Kolkata
 9th May,  2009