a) During the year, Bank allotted 58,18,887 equity Shares to Government
 of India at an issue price of Rs 82.49 per Share and received Rs
 47,99,99,988.63 against allotment of the above equity Shares. Out of
 this, Rs 5,81,88,870 is transferred to Share Capital Account and Rs
 42,18,11,118.63 towards Share Premium Account.
 
 b) During the year, Bank also allotted 3,13,75,874 equity Shares to LIC
 of India at an issue price of Rs 82.49 per share and received Rs
 258,81,95,846.26 against allotment of the above equity Shares. Out of
 this, Rs 31,37,58,740 is transferred to Share Capital Account and Rs
 227,44,37,106.26 towards Share Premium Account.
 
 1.0 Investments
 
 1.1 The Details of investments and the movement of provisions held
 towards depreciation on the investments/ Non Performing Investments of
 the Bank is given below:
 
 1.2 Sale and transfers to/from HTM Category
 
 The value of sales and transfers of securities to/from HTM category has
 not exceeded 5% of the book value of investments held in HTM category
 at the beginning of the year.
 
 During the financial year 2011-12 there was transfer of securities from
 ''Available for Sale'' (AFS) to Held to Maturity (HTM) category of Rs
 3529.69 Crores with the approval of Board of Directors (BOD) at the
 beginning of the year. Depreciation amounting to Rs 45.14 Crore on
 account of such transfer has been charged to Profit and Loss Account.
 
 2.1 Disclosures on risk exposure in derivatives
 
 a) Qualitative Disclosures
 
 i) The Structure and organization for management of risk in derivatives
 trading:
 
 The organization structure consists of Investment Wing at the Corporate
 level which report to the Executive Directors and Chairman & Managing
 Director and ultimately to the Board. Risk Management Department is
 informed of the transactions as and when they take place.
 
 ii) The scope and nature of risk measurement, risk reporting and risk
 monitoring systems:
 
 a) The Interest Rate Swap (IRS) transactions undertaken by the Bank are
 for hedging and trading purposes. Derivative as a product is also
 offered to the customer as per RBI norms. Such transactions are
 undertaken as per policies of the bank formulated based on RBI
 guidelines.
 
 b) The risk is measured in the interest rate derivative transactions
 depending on the movement of benchmark interest rates for the remaining
 life of the interest rate swap contracts. All interest rate derivative
 transactions are included for the purpose of risk measurement. The risk
 is evaluated and reports are placed to the CMD/ ED daily and Board
 periodically. Risk is monitored based on the mark to market position of
 the interest rate derivative transactions.
 
 (iii) Policies for hedging and /or mitigating risk and strategies and
 processes for monitoring the continuing effectiveness of hedges/
 mitigates:
 
 IRS is undertaken on the actual interest bearing underlying assets or
 liabilities. The notional principal amount and maturity of the hedge
 does not exceed the value and maturity of underlying asset/liability.
 The risk is monitored on the mark to market basis of the outstanding
 interest rate swap contracts and accordingly the effectiveness of the
 hedge is determined.
 
 Collateral required upon entering into IRS is Nil. Notional principal
 amount of IRS multiplied by the relevant conversion factor and the
 respective risk weight of the counter party has been taken into account
 for determining the capital requirements.
 
 c) Other Disclosures for Interest Rate Swaps
 
 The Bank has undertaken fixed to floating and floating to fixed
 interest rate swaps on underlying assets and liabilities.  The loss of
 income on the above IRS will be Rs 16.54 Crore (Rs 10.51 Crore), in case
 counter-parties fail to fulfill their obligations. There is no
 concentration of credit risk arising from IRS transactions undertaken
 as the counter-parties are banks and the exposure is within the
 exposure limit permitted.
 
 Based on the total assets of the Bank as on 31.03.2012, the provision
 requirement on account of Country Exposure is Rs.  Nil. The Bank has
 taken a stock of its exposure in countries other than the home country
 as on 31st March, 2012. The Bank''s net funded exposure in each country
 is below 1% of its assets.
 
 3.1 Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL)
 exceeded by the bank.
 
 4.1. Disclosure of penalties imposed by RBI.
 
 Reserve Bank of India has not imposed any penalty on the Bank u/s 46(4)
 of the Banking regulation Act, 1949
 
 5.0. Disclosures Requirement as per Accounting Standards:
 
 5.1 There is no material prior period item included in Profit & Loss
 account required to be disclosed as per AS - 5 issued by ICAI read with
 RBI guidelines.
 
 5.2 Revenue Recognition
 
 Commission earned on Letter of Credit and Guarantees issued are
 recognized on realization basis as per Bank''s accounting policy which
 is not in accordance with AS-9.  However, the amount is insignificant.
 
 5.3 AS - 15 -Employee Benefits
 
 Provision for Employee Benefits viz. Pension, Gratuity, Leave
 Encashment, Sick Leave, LFC/LTC, medical benefits to retired and in
 service Directors and their family members etc. has been made as per
 Revised Accounting Standard (AS) -15. In terms of Limited Revision to
 AS-15 Employee Benefits (Revised 2005) and guidelines notes thereon,
 the Bank has decided to recognize the increase in transitional
 liability over the liability that could have been recognized as per the
 Pre Revised AS-15 as on 31.03.2007 as an expense on a straight-line
 basis over 5 years from financial year 2007-08. Accordingly, Rs 88.69
 Crore has been charged to Profit and Loss Account towards amortization
 of the increase in liability. There is no unamortized portion as at the
 end of the financial year 2011-2012 in this regard.
 
 During the last financial year, the Bank reopened the Pension option
 for such of its employees who had not opted for Pension scheme earlier.
 The Bank in result incurred an additional liability of Rs 507.84 Crore
 due to the same. In the last financial year too, the limit of Gratuity
 payable to the employees was enhanced to pursuant to the amendment of
 Gratuity Act, 1972. As a result the liability of Bank was also
 increased by Rs 292.51 Crore. As per RBI guidelines as enumerated in
 circular no. DBOD. BP.BC. 80.21.04. 018/ 2010-11 dated 09.02.2011, the
 Bank decided to amortize the entire expenditure Rs 800.35 Crore in five
 years beginning from financial year 2010-11. Accordingly a sum of
 Rs 160.07 Crore (Rs 160.07 Crore) is charged to Profit and Loss A/C in
 terms of the requirements of the above RBI Circular. The balance amount
 of Rs 480.21 Crore C 640.28 Crore) is carried forward.
 
 In addition to Rs 160.07 Crore (Rs 160.07 Crore), an amount of Rs 584.17
 Crore (Rs 461.84 Crore) which includes liability for the employees
 benefits, has been charged to Profit and Loss Account towards current
 year''s liabilities.
 
 5.4 Related Party Disclosures:
 
 a) Key Management Personnel
 
 i) Chairman and Managing Director Shri Arun Kaul (From 01.09.2010)
 
 ii) Executive Directors
 
 Shri Ajai Kumar ( Till 30.09.2011)
 
 Shri N.R. Badrinarayanan (From1-9-2010) Shri S. Chandrasekharan (From
 01.10.2011)
 
 c) Associates
 
 Regional Rural Banks sponsored by the Bank are as under:
 
 i) Jaipur Thar Gramin Bank
 
 ii) Kalinga Gramya Bank
 
 iii) Bihar Kshetriya Gramin Bank
 
 iv) Mahakaushal Gramin Bank
 
 v) Paschim Banga Gramin Bank
 
 d) The transactions with Associates have not been disclosed in view of
 Para -9 of the AS-18, Related Party Disclosure which exempts State
 Controlled Enterprises from making any disclosures pertaining to their
 transactions with other related parties, which are also State
 Controlled Enterprises
 
 5.6 As the Bank does not have Subsidiaries or controlling interest in
 Associates/Joint Ventures, AS 21 relating to Consolidated Financial
 Statements, AS 23 relating to Accounting for Investments in Associates
 in Consolidated Financial Statements and AS 27 relating to Financial
 Reporting of Interest in Joint Ventures issued by the ICAI are not
 applicable to the Bank.
 
 5.7 Taxes on Income
 
 a) During the year net amount of Rs 78.93 Crore (Rs 30.51 Crore) has been
 recognised as Deferred Tax Asset as per accounting standard AS-22.
 However, DTA on carried forward loss as per return to the extent of Rs
 120.51 Crore (Rs 371.27 Crore) has gone for appeal, has not been
 recognized on account of prudence.
 
 b) In accordance with the Guidance Note on Accounting for credit
 available in respect of MAT under the Income Tax Act, 1961 issued by
 the ICAI, the MAT credit for the current year amounting to Rs 292.26
 Crore (Rs 286.10 crore) has been credited to P&L Account under
 Provisions and Contingencies by debiting MAT credit entitlement
 Account since the management is of the opinion that the MAT credit can
 be set off during the specified period as per the Provisions of the
 Income Tax Act, 1961.
 
 5.8 Intangible assets
 
 Fixed Assets include computer software, which has been considered as
 intangible assets as per AS-26 issued by the ICAI. The movement in
 software asset is given below:
 
 5.9 Impairment of Assets
 
 In view of the absence of the indication of material impairment within
 the meaning of clause 5 to clause 13 of Accounting Standard-28
 Impairment of Assets, no impairment of fixed assets is required in
 respect of current financial year.
 
 6.1 Contingent Liabilities
 
 a) Such liabilities as mentioned at Serial No. (I) of Schedule 12 of
 Balance Sheet are dependent upon the judgment of court, arbitration
 award, out of court settlement, disposal of appeals, the amount being
 called up, terms of contractual obligations, devolvement and raising of
 demand by concerned parties, respectively and necessary provision is
 made where claim against the Bank is tenable.
 
 b) Based on various appellate decisions on identical issues / pending
 approval of Committee on Disputes for pursuing appeals, disputed demand
 of Income Tax, Penalty, Interest and Interest Tax amounting to Rs 90.91
 Crore (Rs 10.66 Crore) has been shown in Schedule 12 under Contingent
 Liability.  No provision has been considered necessary by the
 
 Management as the matters are pending for appeal before various
 competent Authorities and payments/adjustment of Rs35.65 Crore (Rs 10.65
 crore) has been included in Other Assets in Schedule 11.
 
 6.2 Floating Provisions
 
 Nil
 
 6.3 Draw Down From Reserves
 
 There is no draw down from Reserves.
 
 6.4 Disclosure of Letter of Comforts
 
 The Bank issues Letter of Comforts on behalf of its various
 constituents against the credit limits sanctioned to them. In the
 opinion of Management, no significant financial impact and cumulative
 financial obligations have been assessed under LOCs issued by the Bank
 in the past, during the current year and still outstanding. Brief
 details of LOCs issued by the Bank are as follows:
 
 6.5 Provisioning Coverage Ratio
 
 The provision coverage as on 31.03.2012 works out to 54.39 % (51.60%).
 
 6.6 Income from Banc assurance
 
 Bank is a Corporate Agent of Life Insurance Corporation of India for
 Banc assurance Life and Reliance General Insurance Company Ltd for
 Banc assurance Non-Life business. Details of income from Banc assurance
 is given below:
 
 6.7 Reconciliation:
 
 Reconciliation of entries outstanding has been drawn upto 31.03.2012 
 in case of Inter-Branch Accounts and in Inter-Bank Accounts.
 Elimination of entries outstanding in Inter-Bank Accounts including
 Reserve Bank of India, State Bank of India, NOSTRO Accounts etc. and in
 Inter-Branch Accounts viz. drafts, suspense, branch adjustment,
 clearing transactions, fund transfers, telegraphic transfers, balances
 pertaining to advances paid for acquisition of assets, sundry creditors
 etc. is in progress. In the opinion of the management, consequential
 effect of the above on the revenue/assets/liabilities will not be
 material.
 
 6.8 Fixed Assets
 
 a) Bank had revalued on few occasions in the past, its premises by
 independent qualified values and the excess of fair market value over
 the original cost was credited to revaluation reserve. As on date
 aggregate amount of revaluation reserve (net of revaluation relating to
 assets disposed of) is Rs 633.21 Crore (Rs 584.09 Crore) and depreciation
 on the revalued portion charged to the above revaluation reserve (net
 of depreciation relating to assets disposed of) is Rs 139.09 Crore (Rs
 133.32 Crore).
 
 b) Premises include revalued Assets with written down value of Rs 2.44
 Crores (Rs 2.58 Crores ) in respect of which documentation/ registration
 is pending.
 
 c) Estimated amount of contracts (net of advance) remaining to be
 executed on capital account and not provided for Rs 11.90 Crore (Rs 6.36
 Crore)
 
 6.9 Break up of provision held against non-performing advances into
 facility-wise, security-wise and sector-wise is not ascertained. The
 same is deducted on estimated basis from gross advances in the various
 categories to arrive at the balance of net advances as stated in
 Schedule 9 of the Balance Sheet.
 
 6.10 The bracketed figures indicate previous year''s figures.  Previous
 year''s figures have been re-grouped / re-arranged / re-casted wherever
 considered necessary.