1.1 Capital:
 
 1.  Capital Adequacy Ratio:
 
 * a.  Includes Rs.1,000 crores of bonds raised by erstwhile State Bank
 of Indore (SBIN) merged with SBI on 26th August 2010.
 
 b.  Incudes Rs. 6,497 crores raised vide Public Issue of Bonds in
 October 2010 and February 2011.
 
 ** Includes Rs. 165 crores of Bonds raised by erstwhile State Bank of
 Indore (e SBIN) merged with SBI on 26th August 2010.
 
 # Includes Rs. 2,000 crores raised during the year 2009-10, of which
 Rs. 550 crores invested by SBI employee Pension Fund, not reckoned for
 the purpose of Tier I Capital as per RBI instructions.
 
 2.  Share capital:
 
 a) During the year, the authorised share capital of the Bank is
 increased from Rs.1,000 crores to Rs. 5,000 crores divided into five
 hundred crores shares of Rs. 10/- each.
 
 b) During the year, the Bank has allotted 1,741 equity shares of Rs.
 10/- each for cash at a premium of Rs.1,580 per equity share
 aggregating to Rs.  27,68,190 out of 85,856 shares kept in abeyance
 under Right Issue - 2008. Out of the total subscription of Rs.
 27,68,190 received, Rs.17,410 was trans- ferred to Share Capital
 Account and Rs.  27,50,780/- to Share Premium Account. Further,
 1,14,606 shares of Rs.10 each were allotted to the share holders of
 erstwhile State Bank of Indore upon its merger with State Bank of India
 and Rs. 11,46,060 was transferred to Share Capital Account.
 
 c) The Bank has kept in abeyance the allotment of 84,115 (Previous Year
 85,856) Equity Shares of Rs.10 each issued as a part of Rights issue,
 since they are subject to title disputes or are subjudice.
 
 3.  Hybrid Bonds:
 
 * If the Bank does not exercise call option by 15th May 2017, the
 interest rate will be raised and fixed rate will be converted to
 floating rate.
 
 # If the Bank does not exercise call option by 27th June 2017, the
 interest rate will be raised and fixed rate will be converted to
 floating rate.
 
 These bonds are listed in Singapore stock exchange.
 
 18.2 Investments
 
 Notes:
 
 a.  Investments exclude securities utilised under Liquidity Adjustment
 Facility (LAF) with RBI Rs. 27,000 crores (Previous Year Nil).
 
 b.  Investments amounting to Rs. 11,117 crores (Previous Year Rs.
 11,000 crores) are kept as margin with RBI/Clearing Corporation of
 India Limited towards Real Time Gross Settlement / Securities
 Settlement (RTGS/NDS).
 
 c.  Bank sold its stake in SBI DFHI Limited having book value of Rs.
 88.53 crores for a sale price of Rs. 176.96 crores.
 
 d.  As per RBI Circular Numbered DBOD No. BPBC.58/21.04.141/2010-11
 dated 4/11/2010, the Bank with effect from 1st January 2011, changed
 the method of accounting for investments in Government Securities
 (Gsec) to Settlement Date Accounting as against Trade Date
 Accounting previously. As a result the profits from Gsec is less by
 Rs. 1,60,000 in Financial Year 2010-11.
 
 e.  Effective, 1st April 2010, securities sold under agreements to
 repurchase (Repos) and securities purchased under agreements to resell
 (Reverse Repos), excluding transactions conducted under Liquidity
 Adjustment Facility with RBI, are reflected as borrowing and lending
 transactions respectively in accordance with RBI guidelines under
 reference RBI/2009- 10/356 IDMD/4135/11.08.43/2009-10 dated 23rd March
 2010 on Uniform Accounting for Repo/ Reverse Repo Transactions. In the
 previous period, these transactions were recorded under investments as
 sale and purchase transactions respectively. This change in accounting
 has no impact on the profitability of the Bank.
 
 * Investment in Equity, Equity Oriented Mutual Funds, Venture Capital,
 Rated Assets Backed Securities, Central Government Securities and pass
 through certificates have not been segregated under these categories,
 as these are not covered under relevant RBI Guidelines.
 
 ** Investments in Subsidiaries/Joint Ventures have not been segregated
 into various categories as these are not covered under relevant RBI
 Guidelines. Other investments include deposits with NABARD under RIDF
 Deposit Scheme amounting to Rs. 18,230.00 crores (Previous Year Rs.
 17,833.89 crores).
 
 c) Disclosures on Risk Exposure in Derivatives (A) Qualitative
 Disclosure
 
 i. The Bank currently deals in over-the-counter (OTC) interest rate and
 currency derivatives as also in Interest Rate and Currency Futures.
 Interest Rate Derivatives dealt by the Bank are rupee interest rate
 swaps, foreign currency interest rate swaps and forward rate
 agreements. Currency derivatives dealt with by the Bank are currency
 swaps, rupee dollar options and cross-currency options. The Bank has
 also started dealing in Exchange traded options in the current year.
 The products are offered to the Banks customers to hedge their
 exposures and the Bank enters into derivatives contracts to cover such
 exposures. Derivatives are used by the Bank both for trading as well as
 hedging on balance sheet items. The Bank also deals in a mix of these
 generic instruments. The Bank has done Option deals and Structured
 Products with customers, but they have been covered on a back to back
 basis in inter-bank market.
 
 ii. Derivative transactions carry market risk i.e. the probable loss
 the Bank may incur as a result of adverse movements in interest
 rates/exchange rates/equity prices and credit risk i.e. the probable
 loss the Bank may incur if the counterparties fail to meet their
 obligations. The Banks Policy for Derivatives approved by the Board
 prescribes the market risk parameters (cut-loss triggers, open position
 limits, duration, modified duration, PV01 etc.) as well as customer
 eligibility criteria (credit rating, tenure of relationship etc.) for
 entering into derivative transactions. Credit risk is controlled by
 entering into derivative transactions only with counterparties
 satisfying the criteria prescribed in the Policy. Appropriate limits
 are set for the counterparties taking into account their ability to
 honour obligations and the Bank enters into ISDA agreement with each
 counterparty.
 
 iii. The Asset Liability Management Committee (ALCO) of the Bank
 oversees efficient management of these risks. The Banks Mid-Office and
 Risk Control (MORC) Department at Treasury,
 
 now Market Risk Management Department (MRMD) independently identifies,
 measures, monitors market risk associated with derivative transactions,
 assists ALCO in controlling and managing these risks and reports
 compliance with policy prescriptions to the Risk Management Committee
 of the Board (RMCB) at regular intervals.
 
 iv. The accounting policy for derivatives has been drawn-up in
 accordance with RBI guidelines, the details of which are presented
 under Schedule 17: Significant Accounting Policies (SAP) for the
 financial year 2010-11.
 
 v. Interest Rate Swaps are mainly used at Foreign Offices for hedging
 of the assets and liabilities.
 
 vi. Apart from hedging swaps, swaps at Foreign Offices consist of back
 to back swaps done at our Foreign Offices which are done mainly for
 hedging of FCNR deposits at Global Markets, Kolkata.
 
 vii. Majority of the swaps were done with First class counterparty
 banks.
 
 # IRS/FRA amounting to Rs. 5,035.67 crores entered with the Banks own
 offices are not shown here as they are for hedging of FCNB corpus and
 hence not marked to market.  
 
 $ The swaps amounting to Rs. 6,865.62 crores entered with the Banks
 own foreign offices are not shown here as they are for hedging of FCNB
 corpus and hence not marked to market. 
 
 ** The forward contract deals with the Banks own offices are not
 included.
 
 1.  The outstanding notional amount of derivatives done between Global
 Markets department and International Banking Group department as on
 31st March 2011 amounted to Rs. 11,901.29 crores and the derivatives
 done between SBI Foreign Offices as on 31st March 2011 amounted to Rs.
 29,379.83 crores.
 
 2.  The outstanding notional amount of interest rate derivatives which
 are not marked to market where the underlying Assets/Liabilities are
 not marked to market as on 31st March 2011 amounted to Rs. 45,525.15
 crores
 
 3.  Credit Default Swap : Outstanding as on 31st March 2011 amounted to
 Rs. 983.30 crores.
 
 4.  All Credit Derivatives (CDS, CLN and CDO) were hitherto categorized
 under Held to Maturity (HTM) category. During the financial year ended
 31st March 2011, the entire Credit Derivative portfolio has been re-
 categorised under Available for Sale (AFS) category and has been marked
 to market (MTM). MTM loss as on 31st March 2011 amounts to Rs. 184.14
 crores which has been fully provided for.
 
 18.4 Asset Quality
 
 b) Provisioning Coverage Ratio:
 
 The Provisioning to Gross Non-Performing Assets ratio of the Bank as on
 31st March 2011 is 64.95% (Previous Year 59.23%).
 
 e) With regard to disclosures relating to Micro, Small & Medium
 Enterprises under the Micro, Small & Medium Enterprises Development
 Act, 2006, there have been no reported cases of delayed payments or of
 interest payments due to delay in such payments to Micro, Small &
 Medium Enterprises.
 
 g) Penalty for Bouncing of SGL forms
 
 No penalty has been levied on the Bank for bouncing of SGL Forms.
 
 18.7 Employee Benefits
 
 The estimates of future salary growth, factored in actuarial valuation,
 take account of inflation, seniority, promotion and other relevant
 factors such as supply and demand in the employment market Such
 estimates are very long term and are not based on limited past
 experience / immediate future.  Empirical evidence also suggests that
 in very long term, consistent high salary growth rates are not
 possible, which has been relied upon by the auditors.
 
 ii.  Employees Provident Fund
 
 In terms of the guidance on implementing the AS-15 (Revised 2005)
 issued by the Institute of the Chartered Accountants of India, the
 Employees Provident Fund set up by the Bank is treated as a defined
 benefit plan since the Bank has to meet the specified minimum rate of
 return. As at the year-end, no shortfall remains unprovided for.
 Accordingly, other related disclosures in respect of Provident Fund
 have not been made and an amount of Rs. 854.90 crores (Previous Year
 Rs. 351.59 crores) is recognised as an expense towards the Provident
 Fund scheme of the Bank included under the head Payments to and
 provisions for employees in Profit and Loss Account.
 
 iii.  Defined Contributions
 
 The Bank contributed Rs. 11.75 crores (previous year Nil) to the New
 Pension Scheme for all officers /employees joining the Bank on or after
 1st August 2010.
 
 18.8 Provision for Pension
 
 Consequent to revision in wages in accordance with the Ninth Bipartite
 Settlement and the proposed amendment to the SBI Pension Fund Rules,
 the Pension liability of the bank for the year ended March 31, 2011 as
 determined by the independent actuary amounted to Rs. 11,707 crores.
 After considering the existing provision of Rs. 1,306.70 crores, the
 additional pension cost in respect of the liabilities of earlier years
 amounting to Rs. 7,927.41 crores has been charged to Reserves in
 accordance with the dispensation granted by Reserve Bank of India to
 the Bank vide the letter number DBOD/BP/No./16165/21.04.018/2010-11
 dated 18th April 2011. The pension cost for the year amounting to Rs.
 2,473 crores has been charged to the Profit and Loss account. As per
 the requirements of AS 15 - Employee Benefits, the entire amount of Rs.
 10,400.30 crores is required to be charged to Profit and Loss Account
 Had such dispensation not been allowed by RBI, the profit of the Bank
 would have been lower by Rs. 7,927.41 crores pursuant to the
 application of requirements of AS 15.
 
 18.9 Gratuity
 
 Consequent to the enhancement in limit of gratuity payable under the
 Payment of Gratuity Act, 1972 and revision in wages in accordance with
 the Ninth Bipartite Settlement, the cost on account of Gratuity
 liability of the Bank as determined by the independent actuary for the
 year ended March 31, 2011 amounted to Rs. 1,965 crores.  The
 incremental liability for the year and the increase in liability
 consequent to revision in wages amounting to Rs. 865 crores and an
 amount of Rs. 700 crores on account of enhancement in the limit of
 gratuity, has been charged to the Profit and Loss account. The balance
 amount of Rs. 400 crores, not already charged to Profit and Loss
 account during the year, has not been recognised and will be amortised
 over the next four years in accordance with RBI circular no.
 DBOD.BP.BC.80 /21.04.018/2010-11 dated 9th February 2011. As per the
 requirements of AS 15 - Employee Benefits , the entire amount of Rs.
 1,965 crores is required to be charged to Profit and Loss Account Had
 such circular not been issued by RBI, the profit of the Bank would have
 been lower by Rs. 400 crores pursuant to the application of
 requirements of AS 15.
 
 18.10 Segment Reporting:
 
 1.  Segment Identification
 
 A) Primary (Business Segment)
 
 The following are the primary segments of the Bank:-
 
 — Treasury
 
 — Corporate / Wholesale Banking
 
 — Retail Banking
 
 — Other Banking Business
 
 The present accounting and information system of the Bank does not
 support capturing and extraction of the data in respect of the above
 segments separately.  However, based on the present internal,
 organisational and management reporting structure and the nature of
 their risk and returns, the data on the primary segments have been
 computed as under:
 
 a) Treasury - The Treasury Segment includes the entire investment
 portfolio and trading in foreign exchange contracts and derivative
 
 contracts. The revenue of the treasury segment primarily consists of
 fees and gains or losses from trading operations and interest income on
 the investment portfolio.
 
 b) Corporate / Wholesale Banking - The Corporate / Wholesale Banking
 segment comprises the lending activities of Corporate Accounts Group,
 Mid Corporate Accounts Group and Stressed Assets Management Group.
 These include providing loans and transaction services to corporate and
 institutional clients and further include non-treasury operations of
 foreign offices.
 
 c) Retail Banking - The Retail Banking Segment comprises of branches in
 National Banking Group, which primarily includes Personal Banking
 activities including lending activities to corporate customers having
 banking relations with branches in the National Banking Group. This
 segment also includes agency business and ATMs.
 
 d) Other Banking business - Segments not classified under (a) to (c)
 above are classified under this primary segment.
 
 B) Secondary (Geographical Segment)
 
 i) Domestic Operations - Branches/Offices having operations in India
 ii) Foreign Operations - Branches/Offices having operations outside
 India and offshore Banking units having operations in India
 
 C) Pricing of Inter-segmental Transfers
 
 The Retail Banking segment is the primary resource mobilising unit. The
 Corporate/Wholesale Banking and Treasury segments are recipient of
 funds from Retail Banking. Market related Funds Transfer Pricing
 (MRFTP) is followed under which a separate unit called Funding Centre
 has been created.  The Funding Centre notionally buys funds that the
 business units raise in the form of deposits or borrowings and
 notionally sell funds to business units engaged in creating assets.
 
 D) Allocation of Expenses, Assets and Liabilities
 
 Expenses incurred at Corporate Centre establishments directly
 attributable either to Corporate / Wholesale and Retail Banking
 Operations or to Treasury Operations segment, are allocated
 accordingly. Expenses not directly attributable are allocated on the
 basis of the ratio of number of employees in each segment/ratio of
 directly attributable expenses.  The Bank has certain common assets and
 liabilities, which cannot be attributed to any segment, and the same
 are treated as unallocated.
 
 18.11 Related Party Disclosures: 
 
 1. Related Parties
 
 A.  SUBSIDIARIES
 
 i.  DOMESTIC BANKING SUBSIDIARIES
 
 1.  State Bank of Bikaner & Jaipur
 
 2.  State Bank of Hyderabad
 
 3.  State Bank of Indore (up to 25.08.2010)
 
 4.  State Bank of Mysore
 
 5.  State Bank of Patiala
 
 6.  State Bank of Travancore
 
 7.  SBI Commercial and International Bank Ltd.
 
 ii.  FOREIGN BANKING SUBSIDIARIES
 
 1.  SBI (Mauritius) Ltd.
 
 2.  State Bank of India (Canada)
 
 3.  State Bank of India (California)
 
 4.  Commercial Bank of India LLC, Moscow
 
 5.  PT Bank SBI Indonesia
 
 6.  Nepal SBI Bank Ltd.
 
 iii.  DOMESTIC NON-BANKING SUBSIDIARIES
 
 1.  SBI Capital Markets Ltd.
 
 2.  SBI DFHI Ltd.
 
 3.  SBI Mutual Funds Trustee Company Pvt. Ltd.
 
 4.  SBI CAP Securities Ltd.
 
 5.  SBI CAPS Ventures Ltd.
 
 6.  SBI CAP Trustees Co. Ltd.
 
 7.  SBI Cards & Payment Services Pvt. Ltd.
 
 8.  SBI Funds Management Pvt. Ltd.
 
 9.  SBI Life Insurance Company Ltd.
 
 10.  SBI Pension Funds Pvt. Ltd.
 
 11.  SBI - SG Global Securities Pvt. Ltd.
 
 12.  SBI Global Factors Ltd.
 
 13.  SBI General Insurance Company Ltd
 
 14.  SBI Payment Services Pvt. Ltd.
 
 iv.  FOREIGN NON-BANKING SUBSIDIARIES
 
 1.  SBICAP (UK) Ltd.
 
 2.  SBI Funds Management (International) Pvt. Ltd.
 
 3.  SBICAP Singapore Ltd.
 
 B.  JOINTLY CONTROLLED ENTITIES
 
 1.  GE Capital Business Process Management Services Pvt. Ltd
 
 2.  C-Edge Technologies Ltd.
 
 3.  Macquarie SBI Infrastructure Management Pte. Ltd.
 
 4.  Macquarie SBI Infrastructure Trustees Ltd.
 
 5.  SBI Macquarie Infrastructure Management Pvt. Ltd.
 
 6.  SBI Macquarie Infrastructure Trustees Pvt. Ltd.
 
 7.  Oman India Joint Investment Fund - Trustee Company Pvt. Ltd.
 
 8.  Oman India Joint Investment Fund - Management Company Pvt. Ltd.
 
 C.  ASSOCIATES
 
 i.  Regional Rural Banks
 
 1.  Andhra Pradesh Grameena Vikas Bank
 
 2.  Arunachal Pradesh Rural Bank
 
 3.  Cauvery Kalpatharu Grameena Bank
 
 4.  Chhattisgarh Gramin Bank
 
 5.  Deccan Grameena Bank
 
 6.  Ellaquai Dehati Bank
 
 7.  Meghalaya Rural Bank (Formerly known as Ka Bank Nongkyndong Ri
 Khasi Jaintia)
 
 8.  Krishna Grameena Bank
 
 9.  Langpi Dehangi Rural Bank
 
 10.  Madhya Bharat Gramin Bank
 
 11.  Malwa Gramin Bank
 
 12.  Marwar Ganganagar Bikaner Gramin Bank
 
 13.  Mizoram Rural Bank
 
 14.  Nagaland Rural Bank
 
 15.  Parvatiya Gramin Bank
 
 16.  Purvanchal Kshetriya Gramin Bank
 
 17.  Samastipur Kshetriya Gramin Bank
 
 18.  Saurashtra Gramin Bank
 
 19.  Utkal Gramya Bank
 
 20.  Uttaranchal Gramin Bank
 
 21.  Vananchal Gramin Bank
 
 22.  Vidisha Bhopal Kshetriya Gramin Bank
 
 ii.  Others
 
 1.  SBI Home Finance Ltd.
 
 2.  The Clearing Corporation of India Ltd.
 
 3.  Bank of Bhutan Ltd.
 
 4.  S. S. Ventures Services Ltd.( up to 15.03.2011)
 
 D.  Key Management Personnel of the Bank
 
 1.  Shri O. P. Bhatt, Chairman (up to 31.03.2011)
 
 2.  Shri S. K. Bhattacharyya, Managing Director (up to 31.10.2010)
 
 3.  Shri R. Sridharan, Managing Director
 
 2.  Parties with whom transactions were entered into during the year
 
 No disclosure is required in respect of related parties, which are
 State- controlled Enterprises as per paragraph 9 of Accounting
 Standard (AS) 18. Further, in terms of paragraph 5 of AS 18,
 transactions in the nature of Banker-Customer relationship are not
 required to be disclosed in respect of Key Management Personnel and
 relatives of Key Management Personnel. Other particulars are as under:
 
 1.  C-Edge Technologies Ltd.
 
 2.  GE Capital Business Process Management Services Pvt. Ltd.
 
 3.  Macquarie SBI Infrastructure Management Pte. Ltd.
 
 4.  Macquarie SBI Infrastructure Trustees Ltd.
 
 5.  SBI Macquarie Infrastructure Management Pvt. Ltd.
 
 6.  SBI Macquarie Infrastructure Trustees Pvt. Ltd.
 
 7.  Bank of Bhutan Ltd.
 
 8.  Oman India Joint Investment Fund - Trustee Company Pvt. Ltd.
 
 9.  Oman India Joint Investment Fund - Management Company Pvt. Ltd.
 
 10.  SBI Home Finance Ltd.
 
 11.  S. S. Ventures Services Ltd (up to 15.03.2011)
 
 12.  Shri O. P. Bhatt, Chairman (up to 31.03.2011)
 
 13.  Shri S. K. Bhattacharyya, Managing Director (up to 31.10.2010)
 
 14.  Shri R. Sridharan, Managing Director
 
 18.14 Accounting for Taxes on Income
 
 i) Current tax expenditure for the year is net of reversal of excess
 provision for previous year of Rs. 207.60 crores.  
 
 ii) During the year, Rs.  976.82 crores [Previous Year Rs. 1,407.75
 crores credited ] has been debited to Profit and Loss Account by way of
 adjustment of deferred tax.
 
 18.15 Investments in Jointly Controlled Entities
 
 Investments include Rs. 38.96 crores (Previous Year Rs. 19.95 crores)
 representing Banks interest in the following jointly controlled
 entities
 
 18.16 Impairment of Assets
 
 In the opinion of the Banks Management, there is no impairment to the
 assets during the year to which Accounting Standard 28 - Impairment of
 Assets applies.
 
 18.19 a) Description of Contingent Liabilities and Contingent Assets
 
 Sr.  Particulars              Brief Description
 No.
 
 1   Claims against the Bank   The Bank is a party to various
     not acknowledged as debts proceedings in the normal 
                               course of business.
                               The Bank does not expect the outcome 
                               of these proceedings to have a
                               material adverse effect on the 
                               Banks financial conditions, results of
                               operations or cash flows.
 
 2 Liability on account of     The Bank enters into foreign 
   outstanding forward         exchange contracts, currency options, 
   exchange contracts          forward rate agreements, currency
                               swaps and interest rate swaps with 
                               inter-Bank participants on its own
                               account and for customers. Forward
                               exchange contracts are commitments 
                               to buy or sell foreign currency at a
                               future date at the contracted rate.  
                               Currency swaps are commitments to
                               exchange cash flows by way of 
                               interest/principal in one currency
                               against another, based on 
                               predetermined rates. Interest
                               rate swaps are commitments to 
                               exchange fixed and floating 
                               interest rate cash flows.
                               The notional amounts that are 
                               recorded as Contingent Liabilities, 
                               are typically amounts used as
                               a benchmark for the 
                               calculation of the interest 
                               component of the contracts.
 
 3 Guarantees given on behalf  As a part of its commercial Banking 
   of constituents, 
   acceptances,                activities, the Bank issues 
   endorsements and other      documentary credits and guarantees 
   obligations                 on behalf of its customers
                               Documentary credits enhance 
                               the credit standing of the 
                               customers of the Bank.
                               Guarantees generally 
                               represent irrevocable 
                               assurances that the
                               Bank will make payment
                               in the event of the 
                               customer failing to 
                               fulfil its financial
                               or performance obligations.
 
 4 Other items for which       The Bank is a party to various
   the Bank is contingently    taxation matters in respect of which
   liable.                     appeals are pending. These are being
                               contested by the Bank and 
                               not provided for. Further, 
                               the Bank has made
                               commitments to subscribe 
                               to shares in the normal 
                               course of business.
 
 b) The Contingent Liabilities mentioned above are dependent upon the
 outcome of Court/ arbitration/out of Court settlements, disposal of
 appeals, the amount being called up, terms of contractual obligations,
 devolvement and raising of demand by concerned parties, as the case may
 be.
 
 18.20 Amalgamation of State Bank of Indore
 
 Consequent to the notification of the Acquisition of State Bank of
 Indore Order, 2010 issued by the Government of India, the undertaking
 of State Bank of Indore stands transferred to and vests in State Bank
 of India(the Bank), with effect from 26th August 2010, the effective
 date. The results for the year include the result of operations of the
 erstwhile State Bank of Indore (eSBIN) for the period from 26th August
 2010 to the year end and the results of the Bank are not comparable to
 that extent.
 
 The amalgamation of State Bank of Indore with the Bank has been
 accounted for under the pooling of interest method as prescribed in
 Accounting Standard 14 Accounting for Amalgamations. Pursuant
 thereto, all assets and liabilities of State Bank of Indore as on the
 effective date have been transferred and vested in the Bank and in
 consideration thereof 1,14,606 fully paid equity shares of Rs. 10/-
 each of the Bank have been issued and allotted and Rs. 27,85,099/- paid
 in cash towards fractional entitlements to the non transferee bank
 shareholders in ratio of 34 equity shares for every 100 shares held .
 The Bank held 98.05% of the share capital of the State Bank of Indore
 on effective date which stands cancelled and the difference between the
 value of net identifiable assets acquired and the consideration
 amounting to Rs. 0.33 crore is credited to General Reserve.
 
 18.21 Inter Office Accounts
 
 Inter Office Accounts between branches, controlling offices and local
 head offices and corporate centre establishments are being reconciled
 on an ongoing basis and no material effect is expected on the profit
 and loss account of the current year.
 
 18.22 Wage Agreement Implementation
 
 During the year, the disbursement of arrears of wages was finalized in
 accordance with the ninth Bipartite Settlement. An amount of Rs. 974.29
 crores was written back to the Profit & Loss account during the year
 ended 31st March 2011, being excess amount of provision for wage
 revision and an amount of Rs. 168.98 crores was provided during the
 year for ‘Special Balancing Allowance.
 
 18.23 Interest Not Collected and Unrealised Interest of Previous Year
 
 The balances/provisions held as Interest Not Collected and Unrealised
 Interest of Previous Year for NPAs aggregating Rs. 1,618.02 crores have
 been reversed to the individual borrower accounts as stipulated by
 Reserve bank of India.  Consequently, the advances and provisions as at
 31st March 2011 are lower by Rs. 1,618.02 crores.
 
 18.24 Countercyclical Provisioning Buffer
 
 During the nine month period ended 31st December 2010, the Bank had
 made higher provision for NPAs over and above the prescribed IRAC norms
 to achieve the PCR as per RBI dispensation. During the quarter ended
 31st March 2011, pursuant to the revised guidelines issued by RBI vide
 their circular no. DBOD.  No. BP.BC.87/21.04.048/2010-11 dated 21st
 April 2011, the Bank has created countercyclical provisioning buffer of
 Rs. 2,330.00 crores till 31st March 2011 as against Rs. 3,430 crores,
 shortfall of which is to be met by 30th September 2011.
 
 18.25 In accordance with RBI approval, the Bank has credited Rs. 42.90
 crores to Profit & Loss Account, being the outstanding credit entries
 in Draft Payable Account which were 10 years or more old as on 30th
 September 2010, of this amount of Rs. 28.65 crores (net of taxes) has
 been utilised for additional provision for Provisioning Coverage Ratio.
 
 18.26 During the year, the Bank has contributed Rs. 92.00 crores
 (previous year Rs. 92.00 crores) to SBI Retired Employees Medical
 Benefit Trust.
 
 18.27 Previous period figures have been regrouped/reclassified,
 wherever necessary, to conform to current period classification. In
 cases where disclosures have been made for the first time in terms of
 RBI guidelines / Accounting Standards, previous years figures have not
 been mentioned.