1. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors in their meetings held on May 19, 2009 & May 20, 2009 respectively. The same have been subjected to audit by the Statutory Central Auditors of the bank, in line with the guidelines issued by the Reserve Bank of India and as per listing agreement requirements of Stock Exchanges. 2. The financial results have been prepared following the same accounting policies and practices as those followed in the annual financial statement for the year ended March 31, 2008, except that bank has started accounting of interest on unclaimed matured term deposits at saving bank rate w.e.f. August 22, 2008 till renewal. The differential interest for overdue period is accounted for at the time of renewal. 3. Financial results for the year ended March 31, 2009 have been arrived at, after considering provisions for non-performing assets, standard assets, depreciation on investments as per Reserve Bank of India guidelines and depreciation on fixed assets, gratuity, pension, bonus, interest on overdue deposits, leave encashment, wage revision arrears, wealth tax, tax on income and FBT on estimated basis. 4. Reconciliation of entries outstanding as on March 31, 2009 in inter bank/inter branch and other accounts are in progress and in the opinion of the management consequential impact thereof on revenue/assets/liabilities will not be material. 5 (a). In terms of the Agricultural Debt Waiver and Debt Relief Scheme, 2008 framed by Government of India, an amount of Rs. 1149.89 crore has been waived and preliminary claim has been lodged with Reserve Bank Of India, against which bank has received the Ist instalment of Rs. 467.17 crores. Further, an amount of Rs. 935.87 crore, has been worked out as eligible under the scheme for debt relief, subject to fulfillment of conditions attached thereto, for which claim will be lodged with Reserve Bank Of India. The said claims are subject to certification by Statutory Central Auditors. (b). In respect of Debt Relief, bank has made a provision of Rs. 60 crore against loss in Present Value terms on amount receivable from eligible farmers by utilizing the existing provision held under IRAC norms. (c) The Bank has utilized Rs 59.49 crore out of the Floating Provision of Rs 1080 crore, outstanding as on March 31, 2008, to meet the ineligible charges/ interest related to Agriculture Debt Waiver & Debt Relief accounts, as per RBI guidelines. However, bank has simultaneously made additional Floating Provision of Rs. 60 crores leaving a balance of Rs. 1080.51 crore as on March 31, 2009. 6. The bank has raised Tier-I Bonds of Rs. 220.50 crore and Tier-II Bonds of Rs. 2000 crore during the year. 7. The bank has made an ad-hoc provision for Rs 225 crore during the current quarter, Rs 500 crore during the year, making cumulative provision of Rs 600 crores as on March 31, 2009 pending finality on the wage revision negotiations at Industry level. 8. The Board of Directors have recommended dividend of Rs.20 per equity share of Rs. 10 each (200% of the paid up capital of the bank). 9. The bank has sought clarification from RBI with regard to the modalities of interest subvention claim on short term crop loans based on outstanding balances instead of loan disbursed and the bank has been claiming based on outstanding balances w.e.f April 01, 2007. 10. The deficiencies/data errors noticed/reported in respect of capital adequacy under Basel-II were addressed at Head Office level. Based on periodical exercise undertaken, bank is of the view that, un-rectified deficiencies, if any will not have significant impact on the overall reported capital adequacy. 11. Figures of the previous year/period have been regrouped/rearranged/ re-classified wherever considered necessary. S P Raja Chief Manager Ashwani Chadha Asstt. General Manager KVBN Rao Dy. General Manager L P Agarwal Chief General Manager Dr. K C Chakrabarty Chairman & Managing Director