We, the undersigned auditors of State Bank of Travancore, appointed
 under section 41(1) of the State Bank of India (Subsidiary Banks) Act,
 1959 do hereby report that:
 
 1.  We have audited the accompanying financial statements of State Bank
 of Travancore as at 31st March 2011, which comprise the Balance Sheet
 as at March 31, 2011, Profit and Loss Account and the Cash Flow
 Statement for the year then ended, and the Principal Accounting
 Policies and other explanatory information. Incorporated in these
 financial statements are the returns of Zonal Offices, various
 departments of Head Office and 20 branches audited by us and 705
 branches audited by branch auditors. The branches audited by us and
 those audited by other auditors have been selected by the Bank in
 accordance with the guidelines issued to the Bank by the Reserve Bank
 of India. Also incorporated in the Balance Sheet and the Profit and
 Loss Account are the returns from 64 branches which have not been
 subjected to audit. These unaudited branches account for 0.36 percent
 of advances, 0.67 percent of deposits, 0.09 per cent of interest income
 and 0.20 per cent of interest expenses.
 
 2.  Management is responsible for the preparation of these financial
 statements in accordance with the applicable laws of India. This
 responsibility includes the design, implementation and maintenance of
 internal control relevant to the preparation of the financial
 statements that are free from material misstatement, whether due to
 fraud or error.
 
 3.  Our responsibility is to express an opinion on these financial
 statements based on our audit. We conducted our audit in accordance
 with the standards on auditing issued by the Institute of Chartered
 Accountants of India. Those standards require that we comply with the
 ethical requirements and plan and perform the audit to obtain
 reasonable assurance about whether the financial statements are free
 from material misstatement.
 
 4.  An audit involves performing procedures to obtain audit evidence
 about the amounts and disclosures in the financial statements. The
 procedures
 
 selected depend on the auditors judgment, including the assessment of
 the risks of material misstatement of the financial statements, whether
 due to fraud or error. In making those risk assessments, the auditor
 considers internal control relevant to the Banks preparation and fair
 presentation of the financial statements in order to design audit
 procedures that are appropriate in the circumstances. An audit also
 includes evaluating the appropriateness of accounting policies used and
 the reasonableness of the accounting estimates made by management, as
 well as evaluating the overall presentation of the financial
 statements.
 
 5.  We believe that our audit evidence we have obtained is sufficient
 and appropriate to provide a basis for our audit opinion.
 
 6.  Without qualifying our opinion, we draw attention to
 
 i) Note 9.4.1 to the financial statements, which describes deferment of
 pension and gratuity liability of the bank in respect of continuing
 employes to the extent of Rs. 537.53 lakhs pursuant to the exemption
 granted by the Reserve Bank of India to the public sector banks from
 application of the provisions of Accounting Standard (AS) 15, Employee
 Benefits vide its circular no. DBOD.  BP.BC/80/21.04.018/2010-11 dated
 Feb 9, 2011 on Re-opening of pension option to employees of Public
 Sector Banks and enhancement in gratuity limits – Prudential Regulatory
 Treatment; and
 
 ii) Note No.11 regarding status of Reconciliation of various items.
 
 7.  In our opinion, as shown by the books of Bank, and to the best of
 our information and according to the explanations given to us:
 
 i) the Balance Sheet, read with the notes thereon is a full and fair
 Balance Sheet containing all the necessary particulars, is properly
 drawn up so as to exhibit a true and fair view of state of affairs of
 the Bank as at 31st March 2011 in conformity with accounting principles
 generally accepted in India;
 
 ii) the Profit and Loss Account, read with the notes thereon shows a
 true balance of profit in conformity with accounting principles
 generally accepted in India, for the year covered by the account; and
 
 iii) the Cash Flow Statement gives a true and fair view of the cash
 flows for the year ended on that date.
 
 8.  The Balance Sheet and the Profit and Loss Account have been drawn
 up in Forms A and B respectively of the Third Schedule to the
 Banking Regulation Act, 1949.
 
 9.  Subject to the limitations of the audit indicated in paragraph 1 to
 5 above and as required by the State Bank of India (Subsidiary Banks)
 Act, 1959, and subject also to the limitations of disclosure required
 therein, we report that:
 
 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.
 
 10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
 Flow Statement comply with the applicable Accounting Standards.
 
 For Saha Ganguli & Associates  For Ramanatham & Rao    For Jain & Jain
 Chartered Accountants          Chartered Accountants   Chartered 
                                                        Accountants
 Samir Kumar Saha               C. Kameswara Rao        Niranjan M Jain
     Partner                        Partner               Partner
 Membership No. 051392       Membership No. 024363       Membership 
                                                         No. 101360
 FRN: 302191 E                    FRN: 002934 S         FRN: 103869 W
 
 For Jagadish Chand & Co.    For B V Rao & Co.     For Sridhar & Co.
 Chartered Accountants     Chartered Accountants Chartered Accountants
 
 Praveen Kumar Jain               A R Unni              R Sridhar
 Partner                            Partner               Partner
 Membership No. 085629     Membership No. 007447       Membership No.
                                                           026343
 FRN: 000129 N                  FRN: 003118 S          FRN: 003978 S
 
 Mumbai, 27th April 2011