The Board of Directors is pleased to present the Banks Annual Report
 along with the Audited Balance Sheet as on 31st March, 2011 and the
 Profit & Loss Account statement for the financial year ended 31st
 March, 2011.
 
 SECURITY
 
 The Security Department of the Bank has been making constant efforts to
 provide effective, efficient and progressively better security
 solutions to all the branches and offices. The Department had obtained
 ISO 9001:2000 Certification in May 2007, which was upgraded to ISO
 9001:2008 in May 2010. The Department has thus achieved the unique
 distinction of being the first Security Department among all the Public
 Sector Banks to become ISO 9001:2008 compliant.
 
 The guidelines on security matters are disseminated to Regional Offices
 for implementation through Annual Security Action plan. RBIs
 instructions received during the year for preparation of Currency Chest
 specific Disaster Management Plan and installation of Bio-metric Access
 System has been implemented in all the 42 Currency Chests of the Bank,
 which includes 9 Island Currency Chests located in Lakshadweep Islands.
 
 As per RBI guidelines Security Audit has been conducted in respect of
 all the mainland Currency Chests and 2 Island Currency Chests. All the
 mainland Currency Chests are provided with security and surveillance
 equipment like CCTVs, Automatic Time Lock, Hotlines & Auto dialers. All
 the 48 Cash Vans of the Bank have been provided with Global Positioning
 Radio System (GPRS) to facilitate real time tracking of remittance in
 transit.
 
 To augment the security arrangements at branches, CCTV has been
 installed in 832 identified vulnerable branches.  As part of the
 ongoing process of strengthening the security at branch level, the
 system of risk categorization of branches has been adopted so as to
 provide adequate security infrastructure commensurate with the risk
 category, at all branches.
 
 Based on the crime scenario and threat perceptions, the security
 arrangements are reviewed and regularly updated.  Suitable preventive
 and precautionary measures are put in place to safeguard the interests
 of the Bank.
 
 ACCOLADES/AWARDS
 
 - The Bank received the National Award for outstanding performance in
 lending to Micro Enterprises from the Ministry of Micro, Small and
 Medium Enterprises, GOI, New Delhi in recognition of its performance in
 financing Micro Enterprises. The award was handed over by her
 Excellency, Smt. Pratibha Devisingh Patil, President of India.
 
 - Andhra Pragathi Grameena Bank (sponsored by Syndicate Bank) received
 the Award for ‘Best Bank in the State from the Govt. of A.P. for its
 performance in the field of agricultural development.
 
 STRATEGIC ALLIANCE
 
 During the year 2010-11, the Bank entered into the following strategic
 alliances as part of its strategy to grow its business and broaden the
 customer base.
 
 a) The Bank signed an MOU with Tata AIG Life Insurance to provide
 insurance solution to its customers covered under the Financial
 Inclusion programme. Under the arrangement, these customers will be
 eligible for life insurance cover of Rs. 25,000/- against payment of
 nominal premium of Rs. 30/- per year if they are in the age group of
 18-65 years. Both accidental and natural death is covered under the
 scheme.
 
 b) The Bank entered into tie-up arrangements with Technology Service
 Providers (TSPs), namely, M/s.  Integra Micro Systems Pvt. Ltd., M/s.
 Bartronics India Ltd., M/s. HCL Ltd., M/s. Indian Grameen Service and
 M/s. Smart Chips Technology for providing end-to-end solution for
 implementation of the Financial Inclusion project.
 
 c) The Bank has formed a trust jointly with Vijaya Bank to promote
 financial literacy. To this end, the trust has already set-up Financial
 Literacy and Credit Counselling Centres (FLCCs) in the districts of
 Mangalore, Udupi & Karwar in Karnataka.
 
 d) The Bank has been appointed as ‘Point of Presence (POP) under the
 New Pension System (NPS) by the Pension Fund Regulatory and Development
 Authority (PFRDA). The Bank has since started enrolling members under
 the Scheme.
 
 e) The Bank has been appointed as a Registrar for ‘Aadhaar Project of
 UIDAI.
 
 SYNDBANK SERVICES LTD.
 
 SyndBank Services Limited (SBSL) was incorporated under the Companies
 Act, 1956 on 25-01-2006, as a wholly owned subsidiary of SyndicateBank,
 with an authorized capital of Rs. 10 crore and paid up capital of Rs. 25
 lakh to extend back-office services to SyndicateBank, its clients and
 other financial institutions.
 
 The company has undertaken the following activities during the year
 2010-11.
 
 1.  Follow-up of irregular retail loans and delinquent credit cards of
 Syndicate Bank by sending Notices & SMS messages and tele-calling.
 
 2.  Pre-shipment testing of computer hardware procured by SyndicateBank
 and RRBs sponsored by SyndicateBank.
 
 3.  Dispatch of mailers to HNIs of the Bank giving the details of the
 products and services being offered by SyndicateBank, Dispatch of
 letters seeking the PAN details of the customers of SyndicateBank
 liable for tax deduction at source during the year and dispatch of
 response sheets to SyndVidya (Education loan) beneficiaries.
 
 4.  Card personalization services to SyndicateBank and Prathama Bank.
 
 5.  Sending of domestic and international SMS messages to clients of
 CMSC, SyndicateBank, Mumbai.
 
 6.  Maintenance of database of the dormant deposit accounts of Prathama
 Bank.
 
 7.  Centralizing the pension data in respect of Karnataka State
 Pensions pertaining to the Bangalore Region of SyndicateBank.
 
 8.  E-filing of quarterly TDS returns (Form 24Q, 26Q and 27Q) of the
 branches of Bangalore and Manipal Regions of SyndicateBank.
 
 9. E-filing of IT returns of salaried class through a tie-up with M/s.
 Span Across.
 
 SBSL, a profit making company, is consistently improving its revenues.
 The details of its performance during the last three years are as
 under.
 
 (Rs. lakh)
 
 Particulars                March 09      March 10      March 11
 
 Authorized Capital          1000          1000           1000
 
 Paid-Up Capital               25            25             25
 
 Reserves & Surplus           108           203            286
 
 Fixed Assets (Net)             5             4              3
 
 Total Income                 161           250            254
 
 Profit Before Tax            102           143            124
 
 Profit After Tax              70            94             83
 
 CHANGES IN THE BOARD
 
 Changes in the Board:
 
 - Shri Ravi Chatterjee joined the Board as a Executive Director of the
 Bank w.e.f. 01.09.2010.
 
 - Shri A S Rao joined the Board as RBI Nominee Director w.e.f.
 30.07.2010.
 
 - Shri H Pradeep Rao joined the Board as Government Nominee Director
 w.e.f. 10.05.2010.
 
 - Shri Narendra L Dave joined the Board as Employee Director of the
 Bank w.e.f. 31.08.2010.
 
 - Shri Dinkar S Punja, joined the Board as Officer employee Director of
 the Bank w.e.f. 12.07.2010.
 
 - Shri R Ramachandran, Executive Director demitted the office on
 01.09.2010 on being appointed as Chairman & Managing Director of Andhra
 Bank.
 
 - Shri K Seetharamu, RBI Nominee Director demitted the office on
 30.07.2010.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 The Directors, in preparation of the annual accounts for the year ended
 March 31, 2011, confirm the following:
 
 - That the applicable accounting standards have been followed in the
 preparation of annual accounts, alongwith proper explanation relating
 to material departures, if any;
 
 - That the accounting policies, framed in accordance with the
 guidelines of the Reserve Bank of India, were consistently applied;
 
 - That reasonable and prudent judgments and estimates were made so as
 to give a true and fair view of the state of affairs of the Bank as at
 the end of the financial year and of the profit or loss of the Bank for
 the year ended March 31, 2011;
 
 - That proper and sufficient care was taken for the maintenance of
 adequate accounting records in accordance with the provisions of
 applicable laws governing banks in India for safeguarding the assets of
 the Bank and for preventing and detecting fraud and other
 irregularities;
 
 - That the annual accounts have been prepared on a going concern
 basis.
 
 ACKNOWLEDGEMENT
 
 The Board wishes to place on record its sincere appreciation to the
 public, valuable customers, shareholders and staff members for their
 continued support and patronage.  The Board is also indebted to the
 Ministry of Finance, Government of India; RBI; SEBI and other
 regulatory authorities, various Financial Institutions, Banks and
 Correspondents in India and abroad for their unflinching and valuable
 support and guidance from time to time.
 
                        For and on behalf of the Board of Directors.
 
 Place: Manipal                                       (Basant Seth)
 
 Date: 27.05.2011                      Chairman & Managing Director