1. The Bank has followed the same Accounting Policies, except otherwise stated, in preparation of these financial results as were followed in the Annual Financial Statements for the year ended March 31, 2009.

2. Provision for employee benefits, Income tax and depreciation on fixed Assets has been made on estimated basis.

3. Employee Cost includes an adhoc provision of Rs 35 crore towards wage revision pending outcome of on-going negotiations at industry level.

4. Government of India notified Agricultural Debt waiver and Debt Relief Scheme, 2008 (scheme) 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 differential amount of eligible claim based on the certification by Statutory Central Auditors.

In accordance with the scheme no effect has been given in the accounts in respect of the Debt Relief Scheme for the quarter ended June 30, 2009.

5. The Deferred Tax Liability / Asset has been reckoned or quarterly basis which was hitherto reckoned on annual basis. Consequent to this Deferred Tax Liability has increased by Rs 9 crore.

6. The figures of previous period have been regrouped / rearranged, wherever necessary.

7. The above financial results were recommended by the Audit Committee and approved by the Board of Directors of the bank at their meeting held on July 21, 2009 and were subjected to limited review by the Statutory Central Auditors.

Comment of the Statutory Central Auditors (In respect of Audited Accounts for the year ended March 31, 2009)

Comment:-

The impact, if any, on account of balancing of books, confirmation / reconciliation and clearance of outstanding entries in certain accounts is not accounted for as the same is not ascertainable.

Reply:-

Balancing of Books, confirmation / reconciliation and clearance of outstanding entries in Suspense, Sundries, Clearing Adjustment Demand Drafts, Accounts with other Banks, Exchange Houses Accounts and Inter Branch accounts are in progress. In the opinion of the management, the impact of such reconciliation on the accounts may not be material.

S C Sinha
Executive Director

H Rathnakara Hegde
Executive Director

Alok K Misra
Chairman & Managing Director