1. As a prudent policy, the Bank holds provisions for NPAs and standard assets over and above the minimum required under the RBI norms.

2. Provisions for gratuity, pension, leave encashment, wage arrears, bonus, income-tax including deferred tax & fringe benefit tax, restructured advances and other usual and necessary items have also been made.

3. Reconciliation / adjustment of outstanding entries in Inter branch/office transactions is in progress. In the opinion of the Bank, consequential effect of the same on the revenue/assets/liabilities is not likely to be material.

4. In terms of Agricultural Debt Waiver and Debt Relief Scheme-2008 framed by the Government of India the Bank has received Rs 43.33 crore from Reserve Bank of India on account of loans to small and marginal farmers out of the amount eligible for debt waiver of Rs 106.26 crore.

5. The Bank has invested a sum of Rs 65 crore consisting of 6.5 crore equity shares of Rs 10/- each in IDBI Fortis Life Insurance Company Ltd making the total investment in that company to Rs 117 crore constituting 26% of total share capital of the Company along with other shareholders, Industrial Development Bank of India Ltd and Fortis Insurance International NV.

6. The Board of Directors have recommended a dividend of 50% on equity shares.

7. Consolidated Financial statement include that of the fully owned subsidiary, Fedbank Financial Services Ltd and associate, IDBI Fortis Life Insurance Company Ltd.

8. Figures for the previous periods have been recast/regrouped wherever necessary.

9. The above financial results have been taken on record by the Audit Committee and approved by the Board of Directors at its meeting held on May 22, 2009.

M Venugopalan
Managing Director & CEO