1 a) i) In terms of Government of India letter F.No.11/7/2008 –
 
 BOA dated March 25, 2011, the Bank has made a preferential allotment to
 the Government of India of 2,79,89,821 equity shares of Face Value of
 Rs.10/- each aggregating to Rs.27, 98, 98, 210/- at a premium of Rs.100.04
 per share aggregating to Rs.280, 01,01, 693/-.
 
 ii) In terms of Government of India letter F. No. 11/1/2009 – BOA dated
 June 2, 2010 the Bank has allotted to the Government of India,
 Perpetual Non- cumulative Preference Shares (PNCPS) aggregating to Rs.
 250,00,00,000/- carrying dividend at 1 % above the Repo rate as on 31st
 March.
 
 iii) The Board of Directors in its meeting held on 19.02.2011 altered
 the Authorised Capital of the Bank by dispensing with the classif
 cation into equity shares and perpetual non cumulative preference
 shares. Consequently the Authorised Capital now stand at Rs.3000 crore f
 at without any classif cation.
 
 b) All NOSTRO accounts have been reconciled up to 31st March 2011. In
 accordance with the Reserve Bank of India (RBI) guidelines: (i) there
 were no debiThentries outstanding for more than two years which require
 a provision and (ii) all crediThentries outstanding for more than three
 years have been transferred to a blocked account. CrediThentries
 outstanding upto three years, which are unadjusted on account of
 non-identif cation of claimants, have no ef ect on the Bank.
 
 2 a) Banks SLR investments under Held to Maturity (HTM)
 
 category was Rs. 16126.68 crore (Previous Year : Rs. 13310.06 crore)
 representing 21.03% (Previous Year :19.11%) of Demand and Time
 Liability (DTL) as against ceiling of 25% (Previous Year : 25%)
 prescribed by RBI.
 
 b) During the Year ended 31.03.2011 the Bank has shifted Rs. 3536.08
 crore (Previous Year: Rs.1171.17 crore) of investments at Book Value (BV)
 from AFS to HTM category in terms of RBI guidelines and has provided
 depreciation of Rs.130.29 crore (Previous Year: Rs.6.45 crore).
 
 3 a) Premises include properties of Rs. 1.31 crore (Previous
 
 Year: Rs.1.38 crore) net of depreciation, in respect of which
 registration formalities are pending since long.
 
 b) Premises include leased properties amounting to Rs.17.43 crore (net of
 amortisation) (Previous Year: Rs.18.22 crore).
 
 c) During the year, the Bank has revalued its freehold properties in
 accordance with the Policy formulated in compliance of RBI Circular
 DBOD.BP.BC No. 50/21.04.018/2006-07 dated January 4, 2007. The said
 revaluation has resulted in increase in the value to the extent of Rs.
 219.74 crore.
 
 d) Depreciation over and above the normal depreciation attributable to
 revalued premises is set off against Revaluation Reserve.
 
 4.3.3 Disclosure on risk exposures in derivatives:
 
 a.  Qualitative Disclosure
 
 The Investment Policy for using Derivative Instruments to hedge Banks
 Assets/ Liabilities has been approved by the Board of Directors. For
 transactions in Rupee Derivatives, there are def ned delegated powers
 in the Investment Policy and accordingly required reporting is done to
 Internal Com- mittee for Investment/ Board of Directors. A well def ned
 Risk Management Policy (RMP) approved by the Board of Directors is in
 place. The Bank entered into Interest Rate Swap (IRS) deals only for
 the purpose of hedging.
 
 No derivative transaction was undertaken in Foreign Exchange.
 
 b.  Quantitative Disclosure
 
 The Bank enters into derivative contracts, such as IRS, to hedge
 Balance Sheet Assets. The notional principal value of Swaps outstanding
 as on 31.03.2011 was Rs. NIL (Previous Year- Rs. NIL). The fair value of
 Swaps as on 31.03.2011 was Rs. NIL (Previous Year- Rs. NIL).
 
 4.7.3 Risk Category-wise Country Exposure : The Bank has analyzed its
 risk exposure to various countries as on 31st March, 2011 and such
 exposure is less than the threshold limit of 1% of the total assets of
 the Bank except in the case of U.S.A. where it is 1.45%. In terms of
 RBI guidelines, no provision is required for this exposure except in
 respect of U.S.A. for which an amount of Rs. 86,16,154/- (Previous Year-
 Rs. NIL) has been provided for during the year.
 
 5. Disclosure as per Accounting Standards (AS) notif ed un- der the
 Companies (Accounting Standards Rules, 2006) and in terms of RBI
 guidelines.
 
 5.1 Cash Flow Statement (AS-3)
 
 Cash and Cash Equivalents include Cash in hand, balances with Reserve
 Bank of India, balances with other Banks and money at call and short
 notice.
 
 5.2 Revenue Recognition (AS-9)
 
 Revenue is recognized as per the Accounting Policy disclosed in
 Schedule 17.
 
 5.3 Employees Benef ts (AS-15)
 
 a) The Bank has adopted Accounting Standard 15 (Revised) Em- ployees
 Benef ts, with ef ect from 1st April 2007.
 
 Pursuant to the adoption of transitional obligations, Rs. 413.79 crore
 have been recognized. The said amount represents the dif er- ence
 between the liability in respect of various employees benef ts
 determined under AS-15 (Revised) as on 1st April, 2007 and the li-
 ability as on that date as per AS-15 prior to the revision. The above
 amount is being written of over a period of 5 Years. However, dur- ing
 the Year ended 31st March, 2011, the entire residual amount of Rs.164.93
 crore has been charged of to Prof t and Loss Account.
 
 Had this option not been exercised by the Bank, the prof t of the Bank
 would have been higher by Rs.82.47 crore.
 
 b) During the year, the Bank reopened the pension option for those
 employees who had not opted for the pension scheme earlier. As a result
 of exercise of this option by 7797 employees, the bank has incurred a
 liability of Rs. 268.16 crores. Further, during the year, the limit of
 gratuity payable to the employees of the bank was also en- hanced
 pursuant to the amendment to the Payment of Gratuity Act,1972. As a
 result the gratuity liability of the Bank has increased by Rs. 179.15
 crore.
 
 In terms of the requirements of the Accounting Standard (AS- 15),
 Employee Benef ts, the entire amount of Rs. 447.31 crore (i.e.Rs. 268.16
 crore + Rs. 179.15 crore) is required to be charged to the Prof t & Loss
 Account. However, RBI has issued Circular no.DBOD.
 BP.BC.80/21.04.018/2010-11) on Re-opening of Pension Option to
 Employees of Public Sector Banks & Enhancement in Gratu- ity
 Limits-Prudential Regulatory Treatment, dated 9th February 2011. In
 accordance with the provisions of the said Circular, the Bank exercised
 the option of amortising the amount of Rs. 447.31 crore over a period of
 f ve years. Accordingly, Rs. 89.46 crore (repre- senting one-f fth of Rs.
 447.31 crore) has been charged to the Prof t & Loss Account. In terms
 of the requirements of the aforesaid RBI circular, the balance amount
 carried forward, i.e. Rs. 357.85 crore (Rs.447.31 crore - Rs. 89.46 crore)
 does not include any amount relat- ing to separated/retired employees.
 
 Had this option not been exercised by the Bank, the prof t of the Bank
 would have been lower by Rs. 357.85 crore pursuant to applica- tion of
 the requirements of AS-15.
 
 The summarized position of post-employment benef ts and long term
 employee benef ts recognized in the Prof t & Loss Account and Balance
 Sheet in accordance with Accounting Standard-15 (Re- vised) are as
 under :
 
 5.4 Segment Reporting (AS-17)
 
 The Banks operations are classif ed into two primary business seg-
 ments viz. Treasury Operations and Banking Operations. The relevant
 information is given hereunder in the prescribed format:
 
 5.5 Related Party Disclosures (AS-18)
 
 5.5.1 Names of the Related parties and their relationship with the
 Bank:
 
 Associates(Regional Rural Bank) 
 
 (i) Assam Gramin Vikash Bank 
 
 (ii)Bangiya Gramin Vikash Bank 
 
 (iii) Manipur Gramin Bank 
 
 (iv) Tripura Gramin Bank
 
 5.5.2  Key Management Personnel
 
 (i) Mr. Bhaskar Sen - Chairman and Managing Director
 (ii) Mr. S. L. Bansal - Executive Director
 Remuneration Paid to Key Management Personnel:
 
 5.11 Provisions, Contingent Liabilities and Contingent Assets (AS-29)
 
 Movements in signif cant Provisions have been disclosed at the
 appropriate places in the Notes forming part of the accounts.
 
 6.5 Disclosure of Letter of Comforts (LoCs) issued by the Bank
 
 a) During the current f nancial year the Bank has issued 178 nos
 
 LoCs amounting to Rs. 517.64 crore for providing Buyers Credit facility.
 
 b) There are 79 nos. of outstanding LoCs as on 31.03.2011 amount-
 
 ing to Rs. 269.10 crore.
 
 6.6 Provision Coverage Ratio (PCR)
 
 The provision coverage ratio (PCR) for the Bank as on 31.03.2011 is
 72.13 %, which is calculated taking into account the total tech- nical
 write of s made by the Bank.
 
 6.9 The Board of Directors have recommended dividend of Rs. 2.20 (22%)
 per equity share for the year ended 31st March 2011 subject to approval
 from the applicable regulatory authorities.
 
 6.10 Government of India has notif ed Relief Scheme namely Ag-
 ricultural Debt Waiver and Debt Relief Scheme, 2008 for giving debt
 waiver to marginal and small farmers and relief to other farmers who
 have availed direct agricultural loans. Bank has made full provision of
 inadmissible interest, expenses and dif erential amount of eligible
 claim. Under Agricultural Debt Waiver Scheme of the Government of
 India, the Bank made a claim for Rs. 211.19 crore (Previous Year Rs. 211.19
 crore) and the Bank has received the aforesaid claim amount in full.
 However, an amount of Rs. 7.38 crore as interest thereon is yet to be
 received.
 
 7. Previous Years figures have been regrouped / rearranged wher- ever
 considered necessary to make them comparable.