a. As per BASEL - II
 
 As per the extant guidelines of RBI, Bank has migrated to New Capital
 Adequacy framework with effect from 31.03.2008. Bank has adopted
 Standardized Approach for Credit Risk, Standardized Duration Approach
 for Market Risk and Basic Indicator Approach for Operational Risk
 towards compounding the minimum Capital under BASEL - II.
 
 Prudential Floor as on 31.03.2011
 
 While migrating to BASEL - II framework, RBI has set out a Prudential
 Floor on minimum capital for the smooth transition from BASEL - I
 framework to BASEL - II framework. The Prudential Floor is higher of
 minimum capital is required to be maintained as per BASEL - II
 framework or as a percentage (prescribed as 80% for the financial year
 ending 31st March 2011) of minimum capital requirement computed as per
 BASEL - I framework for credit and market risks.
 
 2.0In compliance with RBI guidelines, the Bank has changed the
 Accounting Policy 3 with effect from 01.01.2011 regarding accounting of
 investments, from trade date to settlement date and this change has
 no impact on these financial statements.
 
 3. DERIVATIVES
 
 3.1. Interest Rate Swap / Forward Rate Agreement / Options
 
 (a) The Bank has entered into (1) Interest Rate Swap (Coupon only
 swaps) for hedging the interest
 
 rate risks of Tier II Bonds and (2) Interest Rate Swap for hedging the
 interest rate risks of FCNR (B) deposits. No swap transaction was
 undertaken for trading purpose during the year.
 
 (b) All the Interest Rate Swaps are within the counter party exposure
 limits.
 
 (c) The value and maturity of the hedge have not exceeded the
 underlying liabilities and no stand- alone transactions are initiated /
 outstanding.
 
 (d) The Coupon only swaps are done in Japanese Yen and Indian Rupees
 receiving Fixed Rate interest in Indian Rupee and paying Japanese Yen
 LIBOR for one year (plus a spread) with a cap of 1%.
 
 (e) Forex based Interest Rate Swaps are done in US Dollars receiving
 fixed and paying six month LIBOR – linked floating rate interest.
 
 (f) Carrying value of the Notional Principal amount of the outstanding
 swaps is same as the Notional Principal amount and outstanding Interest
 Rate Swaps arrived at RBI reference rate as on trade dates.
 
 (g) The Bank has not offered any collateral for undertaking the swaps.
 
 (h) There is no concentration of credit risks arising from Interest
 Rate Swaps undertaken during the year.
 
 (i) No Forward Rate Agreement transaction was undertaken during the
 year.
 
 3.2 Exchange Traded Interest Rate Derivatives (Rupee & Forex)
 
                                                       (Rs. in crore)
 
 S.No.  Particulars                                         Amount
  
 i)     Notional Principal amount of exchange
        traded interest rate derivatives undertaken
        during the year.                                       Nil
 
 ii)    Notional Principal amount of exchange
        traded interest rate derivatives 
        outstanding as on 31.03.2011.                          Nil
 
 iii)   Notional Principal amount of
        exchange traded interest rate derivatives
        and not highly effective.                            Nil
 
 iv)    Marked-to-market value of
        exchange traded interest rate derivatives
        outstanding and not highly
        effective.                                            Nil
 
 3.3 Options
 
 (a) Options offered to customers have been covered back to back in the
 market.
 
 3.4 Disclosures on risk exposure in derivatives
 
 a) Qualitative Disclosure
 
 (i) Bank has started trading in currency futures through MCX Exchange
 with IL&FS as Clearing agent as per Board approved policy.
 
 (ii) As risk measurement and monitoring, the hedge instrument is marked
 to the market at periodical intervals to ensure its effectiveness.
 
 (iii) Identifying an underlying, employing a derivative to hedge the
 Rate Sensitive Gap and reviewing the effectiveness based on interest
 rate view are some of the processes in risk mitigation.
 
 (iv) Hedge transactions are accounted on accrual basis and no marking
 to market is done. However, fair value and likely loss in the event of
 counter party default is disclosed. Credit Risk is mitigated through
 counter party exposure norms set internally.
 
 4.3 Details of financial assets sold to Securitisation / Reconstruction
 Company for Asset Reconstruction
 
                                                        (Rs. in crore)
 
 Particulars                                  31.03.2011    31.03.2010
 
 1.  Number of accounts                           Nil            Nil
 
 2.  Aggregate value (net of provisions) 
     of accounts sold to SC / RC                  Nil            Nil
 
 3.  Aggregate consideration                      Nil            Nil
 
 4.  Additional consideration realized 
     in respect of accounts
     transferred in earlier years                 Nil            Nil
 
 5.  Aggregate gain / loss over net book value    Nil            Nil
 
 4.4 Details of Non-performing financial assets purchased / sold A.
 Details of Non-performing financial assets purchased
 
                                                     (Rs. in crore)
 
 Particulars                               31.03.2011    31.03.2010
 
 1. (a) Number of accounts purchased 
     during the year                          Nil            Nil
 
 (b) Aggregate Outstanding                    Nil            Nil
 
 2. (a) Of these, number of accounts
     restructured during the year             Nil            Nil 
 
 (b) Aggregate Outstanding                    Nil            Nil
 
 7.4 Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL)
 exceeded by the Bank
 
 In terms of the Loan Policy, the exposure to a single borrower should
 not exceed 15% of Banks capital funds.  In exceptional circumstances
 with the approval of the Executive Committee of Banks Board,
 additional exposure to a borrower up to a maximum of 5% of capital
 funds may be considered subject to the borrower consenting to the Bank
 to make appropriate disclosures in its Annual Report.
 
 Prudential norm at 15% of Capital funds as on 31.03.2010 for Single
 borrower is Rs.659.59 crore and 40% for Group borrowers is Rs.1758.89
 crore. During the year Bank has not exceeded the exposure ceiling to
 individual / group borrowers.
 
 8. MISCELLANEOUS
 
 8.2 Disclosures of Penalties imposed by Reserve Bank of India
 
 During the year RBI has not imposed any penalty on the Bank.
 
 DISCLOSURE AS PER ACCOUNTING STANDARDS (AS)
 
 9.1 Accounting Standard 5: Net Profit or Loss for the period, prior
 period items and changes in Accounting Policies There are no material
 prior period income / expenditure items requiring disclosure under
 Accounting Standard 5.
 
 9.3 Accounting Standard 9: Revenue Recognition
 
 Certain items of income are recognized on realization basis as per
 Accounting Policy number 9.1. These are considered not material in
 terms of RBI guidelines, and hence do not require disclosure.
 
 9.4 Accounting Standard 15 (Revised): Employee Benefits
 
 9.4.1. Significant changes in the Principal Accounting Policies
 
 During the year, the Bank reopened the pension option for such of its
 employees who had not opted for the pension scheme earlier. As a result
 of exercise of which by 3720 continuing employees, the Bank has
 incurred a liability of Rs.558.35 crore. Further,
 
 during the year, the limit of gratuity payable to the employees of the
 Bank was also enhanced pursuant to the amendment to the Payment of
 Gratuity Act, 1972. As a result the gratuity liability of the Bank has
 increased by Rs.113.56 crore.
 
 In terms of the requirements of the Accounting Standard 15, Employee
 Benefits, the entire amount of Rs.671.91 crore (i.e. Rs.558.35 crore +
 Rs.113.56 crore) is required to be charged to the Profit and Loss
 Account. However, the RBI has issued a Circular No. DBOD.BP.BC.80 /
 21.04.018 / 2010-11) on Re- opening of Pension Option to Employees of
 Public Sector Banks and Enhancement in Gratuity Limits – Prudential
 Regulatory Treatment, dated 09.02.2011.  In accordance with the
 provisions of the said Circular, the Bank would amortize the amount of
 Rs.671.91 crore over a period of five years. Accordingly, Rs.134.38
 crore (representing one-fifth of Rs.671.91 crore) has been charged to
 the Profit and Loss Account. In terms of the requirements of the
 aforesaid RBI circular, the balance amount carried forward, i.e.,
 Rs.537.53 crore (Rs.671.91 crore – Rs.134.38 crore) does not include
 any employees relating to separated / retired employees and shown under
 Other Assets – Schedule 11.
 
 Had such a circular not been issued by the RBI, the profit of the Bank
 would have been lower by Rs.537.53 crore pursuant to application of the
 requirements of Accounting Standard 15.
 
 9.4.2. Employee Benefits
 
 i) Defined Benefit Pension Plan and Gratuity The following table sets
 out the status of the defined benefit Pension Plan, Gratuity Plan and
 Resettlement Plan as required under Accounting Standard 15:
 
 iii) All the actuarial gains and losses have been fully recognized in
 the statement of profit and loss.
 
 iv) Brief description of type of plan:
 
 Pension is paid to all eligible pension optees, on superannuation,
 voluntary retirement, etc. To be eligible for pension, the employee
 should have put in minimum ten years of service.
 
 Gratuity is payable to all eligible employees on superannuation,
 voluntary retirement, etc.  To be eligible for gratuity, the employee
 should have put in minimum five years of service.
 
 v) The expected return on plan assets over the accounting period is
 based on an assumed rate of return.  The assumed rate of return is
 7.50% per annum.
 
 vii) The estimates of future salary increase; considered in actuarial
 valuation, take into account of inflation, seniority, promotion and
 other relevant factors such as supply and demand in the employment
 market.
 
 9.4.3.  Defined Contribution Plan
 
 Amount of Rs.9.38 crore is recognized 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.
 
 9.4.4.  Other Long term Employee Benefits
 
 Amount of Rs.20.42 crore is recognized as an expense towards Other Long
 term Employee Benefits included under the head Payments to and
 Provisions for Employees in profit and loss account.
 
 9.5 Accounting Standard 17: Segmental Reporting
 
 Part A: Business Segments
 
 Pursuant to RBI guidelines, the Bank has re-classified the business
 segments in which the Bank operates into:
 
 a.  Corporate / Wholesale Banking
 
 b.  Retail Banking
 
 c.  Treasury and
 
 d.  Other Banking Operations
 
 The classification has been done on the basis of following criteria:
 
 i) Corporate / Wholesale Banking: All loan and advance accounts with
 exposure of above Rs.5 crore are classified under wholesale / corporate
 Banking.
 
 ii) Retail: All loan and advance accounts which are not covered above
 will be taken as Retail Banking.
 
 iii) Treasury: Entire investment portfolios are classified under
 Treasury segment.
 
 iv) Other Banking Operations: The Bank does not have Other Banking
 Operations segment.
 
 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.
 
 (c) 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 C: Geographic Segment
 
 The Bank operates only in the Domestic segment and therefore, no
 separate disclosure under geographic segment is made.
 
 9.7 Accounting Standard 19: Leases
 
 The properties taken on lease / rental basis are renewable / cancelable
 at the option of the Bank. The Banks liabilities in respect of
 disputes pertaining to additional rent / lease rent are recognized on
 settlement or on renewal.
 
 b) Contingent liabilities
 
 Liabilities at Item - I, VI and VII of Schedule 12 of the Balance Sheet
 are dependent upon the outcome of court / arbitration / out of court
 settlement, disposal of appeals, the amount being called up, terms of
 contractual obligations, development and raising of demand by concerned
 parties, respectively.
 
 c) Claims against the Bank, not acknowledged as debts
 
 Total claims against the Bank, which is not acknowledged as debt
 comprise tax demands in respect of which the Bank is in appeal of
 Rs.177.52 crore and the cases sub-judice is Rs.5.25 crore of which, as
 per estimates, Bank may result in an outgo of Rs.1.72 crore and this
 has been fully provided for.
 
 d) Amount of capital contract to be executed net of advances has been
 estimated to Rs.1.05 crore
 
 FIXED ASSETS
 
 a) Depreciation on flats has been provided on the actual cost of
 acquisition, as land value is not separately available
 
 b) Gross value of Fixed Assets (other than Premises) jointly owned by
 State Bank of India and other Associate Banks amounts to Rs.699.57
 crore (previous year Rs.634.32 crore). The share of the Bank is
 Rs.69.95 crore (previous year Rs.63.43 crore).
 
 RECONCILIATION
 
 Inter-Branch transactions, ATM balances, Accounts with State Bank of
 India and Associate Banks, Government (Central & State) transactions
 accounts, Draft Payable account, Nostro accounts, System Suspense
 account, Clearing and other Adjusting accounts are at various stages of
 reconciliation. In the opinion of the Management there will not be any
 material impact of such reconciliation on the financial statements.
 
 B. Award passed by the Banking Ombudsman
 
 S.  Particulars                                                Nos.
 No.
 1   Number of Unimplemented Awards at the beginning of 
     the year                                                   Nil
 
 2   Number of Awards passed by the Banking Ombudsmen 
     during the year                                            Nil
 
 3   Number of Awards implemented during the year               Nil
 
 4   Number of Unimplemented Awards at the end of the year      Nil
 
 12.4 Disclosure of Letter of Comforts (LoCs) issued by the Bank
 
 The Bank has not issued any Letter of Comforts (LoCs) during the year.
 
 12.5 Fees / Remuneration received in respect of Banc-assurance business
 undertaken by the Bank The Bank has received the following fees /
 remuneration in respect of the Banc-assurance business undertaken by
 the Bank:
 
 12.7 Off-Balance Sheet SPVs sponsored
 
                   Name of the SPV sponsored
 
                  Domestic       Overseas
 
                    Nil             Nil
 
 12.9 Others
 
 a) The Bank implemented the Agriculture Debt Waiver and Relief Scheme
 (ADWDRS), 2008 as per the directives of Government of India. The
 eligible amount receivable under the Debt Waiver Scheme and Debt Relief
 Scheme is Rs.328.17 crore and Rs.15.18 crore respectively. The Bank has
 submitted audited claims for Rs.324.23 crore under Debt Waiver (SF /
 MF) and Rs.11.55 crore under Debit Relief (OTS) schemes respectively
 and the same have been received from the Government in full.
 
 The claim for the balance amount of Rs.3.94 crore under Debt Waiver and
 Rs. 3.63 crore under Debt Relief on account of grievances admitted by
 the Grievance Redressal Officers / relief paid to other farmers on
 payment of their share of 75% up-to the extended last date for such
 payment i.e. from 01.01.2010 to 30.06.2010 will be submitted to RBI
 before June 2011 as advised by them.
 
 The Government of India has also decided to pay interest on the
 installments payable by them. The Bank has recognized a sum of Rs.8.08
 crore on account of such interest receivable under the scheme and
 booked in Profit & Loss account for the financial year 2010-11.
 
 Provision for the loss in Present Value (PV) terms for moneys
 receivable from the Government of India, for the accounts covered under
 the Debt Waiver Scheme and the Debt Relief Scheme, an amount of Rs.1.17
 crore has been reversed to the Profit and Loss account in accordance
 with Para 21.1 of RBI Circular No. DBOD.NO.BP.BC.21/ 21.04.048/2010-11
 
 b) The Bank has not received the necessary information from the
 suppliers / service providers covered under Micro, Small and Medium
 Enterprises Development Act, 2006, with regard to their registration
 with the appropriate authority.  Hence the information, to be disclosed
 under section 22 of the said Act, is not given.
 
 c) General Reserves as on 31.03.2011 includes an amount of Rs.6.50
 crore transferred during 2009- 10 being the amount of individual credit
 entries of value less than USD 2500 or equivalent, originated up-to
 March 2002 and outstanding in the Nostro accounts, in terms of RBI
 Circular No.  DBOD.BP.BC.No.133/21.04.018/2008-09 dated 11.05.2009.
 
 12.10 The Bank has implemented a Special Home Loan Scheme for the
 period December 2008 to June 2009, arising out of which one time
 insurance premium has been paid covering the life of the borrowers over
 the tenure of the home loan availed.  The total premium paid amounting
 to Rs.12.69 crore on account of such scheme is being charged off over
 the average loan period and accordingly 1/10th of the premium has been
 charged to profit and loss account.
 
 12.11 Bank has entered into an Inter-Bank participation contract with
 risk sharing basis as an issuing bank. In terms of the scheme of
 Inter-Bank Participants-Guidelines issued by RBI vide
 DBOD.No.BP.BC.57/62-82 dated 31.12.1988, the aggregate amount of
 participation of Rs.1000 crore outstanding as on 31.03.2011 has been
 reduced from the aggregate advances including from the sub-
 classifications.
 
 12.12 Previous years figures have been regrouped / rearranged wherever
 necessary.