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 2012, which comprise the Balance Sheet
 as at March 31, 2012, 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 727
 branches and 9 Central Loan Processing Units 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 130 branches which have not been subjected to audit.
 These unaudited branches account for 1.27 percent of advances, 2.43
 percent of deposits, 0.55 per cent of interest income and 1.07 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 auditor''s 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
 Bank''s 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 to the extent of Rs. 403.15
 crores 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 2012 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 Sridhar & Co        For Jagdish Chand &Co      For B.V. Rao & Co
 Chartered Accountants   Chartered Accountants      Chartered Accountants
 
 R.Srinivasan            J.C.Gupta                  B.A.S.P. Ranga
 
 Partner                 Partner                    Partner
 
 Membership No. 200969   Membership No. 006107      Membership No. 022649
 
 FRN: 003978S            FRN: 000129N               FRN: 003118S
 
 
 
 For Abraham & Jose      For G K Rao & Co.          For RGN Price & Co. 
 
 Chartered Accountants   Chartered Accountants      Chartered Accountant
 s
 Paulson Thengumpallil   Suryanarayana Reddy.B      P.M.Veeramani
 
 Partner                 Partner                    Partner
 
 Membership No. 208694   Membership No. 021071      Membership No. 023933
 
 FRN: 000010 S           FRN: 003124S               FRN: 00278SS
 
 Mumbai, 27th April 2012