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NOTICE

STATE BANK OF BIKANER & JAIPURHead Office, Tilak Marg, 'C'-Scheme,

Jaipur-302 005

NOTICE is hereby given that the Fifty-second Annual General Meeting of the Shareholders of State Bank of Bikaner and Jaipur will be held in the Maharana Pratap Auditorium, Bharatiya Vidya Bhavan, K. M. Munshi Marg, Opp. O.T.S., Jaipur - 302015 on Friday, the 7th June, 2013 at 11.30 A.M. (Indian Standard Time) to discuss and adopt the Balance Sheet and Profit & Loss Account of the Bank, the report of the Board of Directors on the working and activities of the Bank and the Auditors' Report on the Balance Sheet and Accounts for the period 1st April, 2012 to 31st March, 2013.

The register of shareholders of the Bank shall remain closed from Friday, the 31st May, 2013 to Thursday, the 6th June, 2013 (both days inclusive) for the purpose of Annual General Meeting for the year ended 31st March,

2013.

By Order of the Board

Delhi B. Sriram

Dated: 06th May, 2013 Managing Director

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CONTENTS

Highlights 03

04

Board of Directors 04

Directors' Report 07

II

Basel-II Disclosures 79

Auditors' Report 117

Balance Sheet 120

Profit & Loss Account 122

Schedules 124

Principal Accounting Policies 137

Notes on Accounts 151

A Decade of Progress 2004-2013`

(`in Crore)

Indicators

Capital &

Reserves

Total

Business

Operating

Profit

Net Profit

No. of

Branch-

es

Average

Business per

Employee

`Net Profit per

Employee

(`In lakh )

March 2004 1148.57 25457 681.35 301.52 812 1.70 2.44

March 2005 1297.68 31294 729.64 205.65 824 2.20 1.69

March 2006 1405.66 37790 481.03@ 145.03 832 2.77 1.20

March 2007 1653.71 49246 679.20@ 305.80 844 3.56 2.57

March 2008 1713.21 59427 661.18@ 315.00 850 4.45 2.73

March 2009 2046.47 69312 892.84@ 403.45 860 5.55 3.55

March 2010 2417.40 81622 903.73@ 455.16 861 6.28 3.96

March 2011 2850.81 95596 1140.25@ 550.88 902 7.51 4.84

March 2012 4164.88 111558 1489.61@ 652.03 950 8.27 5.42

March 2013 4764.13 130590 1712.87@ 730.24 1037 9.00 5.91

@

Keeping in view revised RBI guidelines on valuation of investments.

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HIGHLIGHTS`

(`in Crore)

2011-12 2012-13

Total Business including inter-bank deposits 111558 130590

Deposits 61572 72116

Total Advances 49986 58474

Advances (Net) 49244 57535

Investments (Net) 16669 20146

Net Profit 652.03 730.24

Cost of Deposits 6.85% 7.13%

Yield on Advances 11.51% 11.64%

Net Interest Margin 3.70% 3.62%

Paid-up Capital & Reserves 4164.88 4764.13

` Earning per Share (in `) 95.05 104.32

` Book Value per Share ( in `) 594.98 678.74

Capital Adequacy Ratio

12.81% 11.81%

13.76% 12.16%

Dividend Rate 145% 161%

Gross Non Performing Assets 1651.47 2119.49

Gross NPA % 3.30% 3.62%

Net NPA % 1.92% 2.27%

Advances to Priority Sectors 17690 20807

Advances to Agriculture 9032 9188

Advances to Micro and Small Enterprises 6478 8127

Export Finance 1931 2334

Total number of branches 950 1037

Number of Employees 12866 12831

Average Business per Employee 8.27 9.00

` Net Profit per Employee (` in lakh) 5.42 5.91

I As per Basel-I

II As per Basel-II

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BOARD OF DIRECTORS (AS ON 31st March, 2013)

Shri Pratip Chaudhuri ChairmanState Bank of India, Corporate CentreMadame Cama Road, Mumbai-400021

Chairman, ex-officio under clause (a) of sub-section (1) of section 25 of the State Bank of India (Subsidiary Banks) Act, 1959.

Shri B. Sriram Managing Director State Bank of Bikaner and JaipurHead Office, Tilak MargJaipur - 302 005

Nominated under clause (aa) of sub-section (1) of section 25 of the Act.

Smt Malvika Sinha Chief General Manager,Deptt of Non-Banking Supervision, Issue Deptt and Foreign Exchange Deptt, Reserve Bank of India, New Delhi

Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.

Shri Rajeev N. Mehra Chief General Manager (A & S)State Bank of India, Corporate Centre, Mumbai-400021

Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.

Shri Pradip Kumar Sanyal Dy. General Manager (A&S)Associate Banks DepartmentState Bank of IndiaCorporate Centre, Mumbai-400021

Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.

Shri Rajesh T. Manubarwala 9, Amijadav Bunglows, Near Hotel Ashish, ABC Chokdi,Bharuch -392001

Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.

Shri Bharat Rattan B. Rattan & Associates,Shop No. 408-409, Mahak Tower, Kailash Cinema Road, Civil Lines Ludhiana-141001

Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.

Shri Arun K Saraf Managing Director,, Juniper Hotels Pvt Ltd., Grand Hyatt Mumbai, Santacruz,MUMBAI-400005

Elected director under clause (d) of sub-section (1) of section 25 of the Act.

Shri Kunal Dalmia Lindsay Tower, 9th Floor,13, Nelisen Gupta Sarnee,Kolkata-700087

Elected director under clause (d) of sub-section (1) of section 25 of the Act

Shri Mihir Kumar Director, Govt. of India, Ministry of Finance, Deptt. of Financial Services (Banking Division), 3rd Floor, Jeevan Deep Bldg., Parliament Street, New Delhi.-110001

Nominated by the Central Government under clause (e) of sub- section (1) of section 25 of the Act.

Shri Sunil Dutt Bali Muskan, 4/83, Vidhyadhar Nagar,Jaipur

Nominated by the Central Government under clause (cb) of sub-section (1) of section 25 read with sub section (2A) of section 26 of the Act.

Shri D.K. Jain, S. W. O. State Bank of Bikaner & Jaipur, Z. O., Patel circle, Udaipur-313001

Nominated by the Central Government under clause (ca) of sub- section (1) of section 25 read with sub- section (2A) of section 26 of the Act.

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BOARD OF DIRECTORS (AS ON 31st March, 2013)

Shri B. SriramManaging Director

Shri Pratip ChaudhuriChairman

Shri Rajeev N Mehra

Shri Pradip Kumar Sanyal Shri Mihir KumarSmt. Malvika Sinha

Shri Kunal DalmiaShri Bharat RattanShri Rajesh T. Manubarwala

Shri D.K. JainShri Arun K. Saraf Shri S.D.Bali

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REPORT OF THE BOARD OF DIRECTORS TO THE STATE BANK OF INDIA,

THE RESERVE BANK OF INDIA AND THE GOVERNMENT OF INDIA

IN TERMS OF SECTION 43(1) OF THE STATE BANK OF INDIA

(SUBSIDIARY BANKS) ACT 1959

PERIOD COVERED BY THE REPORT: 1ST APRIL 2012 TO 31ST MARCH 2013

The Board of Directors of State Bank of Bikaner and Jaipur have pleasure in presenting this Annual Report together with the audited Balance Sheet and Profit and Loss Account of the Bank for the year ended 31st March 2013.

MANAGEMENT DISCUSSION AND

ANALYSIS

ECONOMIC ENVIRONMENT

WORLD ECONOMY

Global economic prospects have improved but the road to recovery in the advanced economies will remain bumpy. In advanced economies, activity is expected to gradually accelerate, starting in the second half of 2013. Over the past six months, advanced economy policymakers have successfully defused two of the biggest short-term threats to the global recovery, the threat of a euro area breakup and a sharp fiscal contraction in the United States caused by a plunge off the “fiscal cliff.” In response, financial markets have rallied on a broad front. Growth in several emerging and developing economies (EDEs) rebounded from the moderation. Among BRICS countries growth accelerated in Brazil and South Africa, while it persisted below trend in China, Russia and India. Inflation has remained benign in the Advanced Economies in the absence of demand pressures and inflation expressions remain well anchored. The inflation in EDEs present a mixed picture. While inflation has picked up in Brazil, Russia and Turkey, it has eased in China,

Korea, Thailand and Chile.

INDIAN ECONOMY

Central Statistical Organisation's (CSOs) advance estimate of 5.0 per cent GDP growth during financial year 2012-13 is lower than the Reserve Bank's base line projections of 5.5 per cent set out in the Third Quarter Review of January, 2013 reflecting slower than expected growth in both industry and services. During 2013-14 economic activity is expected to show modest improvement over last year. The out look for industrial activity remains subdued, with the pipeline of new investment drying up and existing projects stalled by bottlenecks and implementation gaps. The RBI has projected baseline GDP growth for financial year 2013-14 at 5.7 per cent.

By March, 2013, WPI inflation at 6.0 per cent turned out to be lower than the Reserve Banks of India's indicative projection of 6.8 per cent mainly due to sharp decline in non-food manufactured product inflation in the second half of the year. Keeping in view the domestic demand - supply balance, the outlook for global commodity prices and the forecasting a normal monsoon, RBI expects WPI inflation to be in range band around 5.5 per cent during 2013-14.

RAJASTHAN ECONOMY

Rajasthan's economy is primarily agricultural and pastoral. The problem of famine and drought is deeply related with the economy of Rajasthan. According to the population of 2001 about 80% of the population lives in rural areas therefore agriculturist tribes

On-line Inauguration of 1000th Branch of the

Bank at Sambhar by Hon'ble Union Finance

Minister, Govt. of India Sh. P. Chidambaram

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Bank Donated Rs. 2 crore towards Rajasthan

Chief Minister's Relief Fund for Relief

Measures

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are the biggest sufferers in time of

famine and drought. Rajasthan is the

leading investment destination in India

after Maharashtra and Gujarat because

of peaceful environment, better law and

order situation, excellent infrastructure,

investment friendly climate and very

less population density. Areas facing

NCR such as Bhiwadi are now buzzing

with automobile and manufacturing

companies. Rajasthan is pre-eminent

in quarrying and mining in India. The

state is the second largest source of

cement. It has rich salt deposits at

Sambhar, copper mines at Khetri and

zinc mines at Dariba and Zawar.

Endowed with natural beauty and a

great history, tourism is flourishing

in Rajasthan. The palaces of Jaipur,

lakes of Udaipur and desert forts of

Jodhpur, Bikaner & Jaisalmer are

among the most preferred destination

of many tourists, Indian and foreign. A

spin-off of tourism has been the growth

of the handicrafts industry. Tourism

provides a big boost to the economy

of Rajasthan. Recently HPCL signs a

MoU with Rajasthan Government for

9MMTPA Refinery-cum-Petrochemical

Complex at Barmer in Rajsthan.

DEVELOPMENTS IN THE FINANCIAL SECTOR

The year 2012-13 witnessed a sharp

decline in the advances growth of

scheduled commercial banks (SCBs)

while deposit growth also subdued.

The year-on-year aggregate deposits

and advances growth of SCBs stood

at 13.2% and 13.9% respectively as at

end-March 2013, compared to 17.4%

and 19.3% respectively during the

previous year.

Growth slowdown, persistent inflation

and the twin deficit risks came to the

fore during 2012-13 and enervated

the Indian economy endangering the

reversal of its declining growth path.

Amidst trade-offs, monetary policy

factored in increased growth risks

and shifted its stance to calibrated

easing to address the growth slow

down as headline inflation gradually

moderated. The Government also

launched concerted policy action and

reforms during H2 of 2012-13. These

reforms, with fuller implementation,

are expected to arrest the downward

spiral and kick in the modest recovery

in 2013-14. Some of the important

policy developments:

Interest subvention of 1 per cent

on housing loans extended to

loans upto `15 lakh, where cost

of the house does not exceed to

`25 lakh.

Small individual investors will

get no-frills demat accounts for

trading in stocks, mutual funds

and other securities without any

annual maintenance charges for

holdings up to `50000. Also, the

charges would be capped at a

maximum of `100 a year if the

portfolio value is up to `2 lakh.

RBI released the final guidelines

for Indian Banks on BASEL-III.

Banks will have to comply with

these norms between April, 2013

and March, 2018.

RBI has notified Banks to

obliterate the foreclosure charges

(prepayment charges) on floating

rate home loans. This will lead

to reduction in the discrimination

between existing and new

borrower; and competition among

banks will result in finer pricing of

floating rate home loan.

The central role in financial

inclusion has to be played by

banks. They need to focus on

transactions in accounts opened

under financial inclusion. Only

banks can offer the entire suite

of products required to usher in

meaningful financial inclusion.

RBI has allowed Banks to establish

outlet for BCs in rural centres to

boost the Government's financial

inclusion programme.

RBI has advised all Banks to

allow their customers to use the

National Electronic Funds Transfer

(NEFT) facility for repaying loans.

The borrowing limit of Scheduled

Commercial Banks (SCBs) under

the Marginal Standing Facility

(MSF) raised from 1% to 2%

of their Net Demand and Time

Liabilities.

Interest Subvention scheme

for short-term crop loan to be

continued.

Companies investing `100 crore

or more in plant and machinery

during the period 01.04.2013

to 31.03.2015 will be entitled to

deduct an investment allowance

of 15% of the investment.

Guidelines regarding financial

restructuring of DISCOMS

have been announced. State

Government urged to prepare the

financial restructuring plan, quickly

sign MoU and take advantage of

the scheme.

Additional deduction of interest up

to `1.00 lac for a person taking

first home loan up to `25.00 lac

during period 01.04.2013 to

31.03.2014.

All Branches of Public Sector

Banks to have ATM by

31.03.2014.

Proposal to set up India's first

women's Bank as a Public Sector

Bank.

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OPPORTUNITIES, CHALLENGES AND OUTLOOK

The Union Budget 2013-14 has

projected the GDP Growth for

2013-14 at 8% which expected to

boost the demand for credit and

other services from the banking

system. The Cabinet Committee on

Investment (CCI) has been set up to

over come the slow progress of big

projects. The fiscal deficit for the year

2012-13 contained at 5.2% and

for the year 2013-14 estimated at

4.8%.

The foremost challenges before the

Bank continues to be improving

its market share both in the State

of Rajasthan and on an all-India

basis with emphasis on maintaining

asset quality, utilizing advanced

technology for increase in business

and profitability, improving risk

management systems, increasing net

interest margin, increasing non-fund

based business sizably and achieving

further improvement in the customer

service by adopting best Corporate

Governance practices.

CORPORATE OPERATIONS

BUSINESS PERFORMANCE

The overall business of the Bank

(deposits plus gross advances)

reached a level of

`130590 crore as at

end-March 2013 as

against `111558 core

as at end-March 2012,

recording a growth

of `19032 crore

(17.06%). The total

deposits increased by

`10544 crore (17.12%)

to reach a level of

`72116 crore while

advances increased by

`8489 crore (16.98%)

to reach a level of

`58474 crore by end-

March 2013. The cost of deposits of

the Bank increased from 6.85% in

2011-12 to 7.13% in 2012-13, while

yield on advances improved from

11.51% to 11.64%.

TREASURY AND INVESTMENTS

During the current financial year, growth has slowed and inflation remained above the Reserve Bank’s comfort level. Monetary Policy has responded to this evolving growth-inflation dynamics through calibrated

easing. The Reserve Bank front-loaded a reduction in its repo rate by 50 bps in April 2012. Even as elevated inflation and the twin deficits have severely restricted the space for further easing of the policy rate since April 2012, subsequent measures were directed towards ensuring adequate liquidity to facilitate a turnaround in credit deployment to productive sectors for supporting growth. As part of liquidity management measures, the CRR was reduced in two stages by 50 bps in a pre-emptive manner to ease monetary and liquidity conditions. Also, the statutory liquidity ratio (SLR) of scheduled commercial banks (SCBs) was reduced to improve the credit conditions. Further more, apart from supplying liquidity through daily liquidity adjustment facility (LAF), the Reserve Bank made active use of the auctions under outright open market operations (OMOs) and injected primary liquidity

of about 1.3 trillion. The judicious use of the two sets of instruments, i.e., keeping the policy rate unchanged from April to December and proactive liquidity easing measures conferred dual benefits that were evident as inflation gradually declined from its

A Spinning Unit financed by the Bank

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peak and credit off-take showed signs of improvements during most of November and December 2012. Inflation, however, continues to remain above the Reserve Bank’s comfort level.

In the 'Third Quarter Review of Monetary Policy 2012-13', Repo rate was slashed by 25 basis points at 7.75% against 8.00% earlier, and Cash Reserve Ratio (CRR) of scheduled banks was also reduced by 25 basis points from 4.25% to 4.0% of their net demand and time liabilities (NDTL). Continuing with this RBI again cut the Repo Rate by 25 basis point in March, 2013, bringing the Repo rate down to 7.50%.

The yield on the 10 year Benchmark security eased to 8.12% from 8.74% during the period April to July, however August saw the yield firming up again as a result of cut in SLR requirements. From September onwards on the back of the reform measures announced by the Government and subsequent cut in the repo and frequent OMOs announced by the RBI, the 10 year benchmark yield eased further and touched a low of 7.78%. This gave us the opportunity to book profit in GSec.

Equity market during the first quarter of the year was in red mainly on the issues like GAAR & S&P’s negative outlook on India and increasing worry on Eurozone. However the market remained largely in the green territory during the second and third quarter as a result of various reform measures taken by the government and continued FII inflows. During the last quarter the market plunged again as GDP growth failed to pickup and recorded a dismal 4.5% growth in the third quarter. The negative sentiment accentuated further as the Union Budget for FY 2014 presented in the Parliament failed to support the sentiment, though Finance minister stuck to the fiscal deficit targets and provided measures on social infrastructures. The Budget fell short of any big ticket, policy oriented

thrust to boost growth. The sentiment remained bearish on account of Eurozone concern. During the year Bank invested in IPOs/OFSs of companies with proven record/sound fundamentals and also undertook trading in the secondary market to maximize returns.

The Bank’s net investment increased from `16669 crore as on 31st March 2012 to `20146 crore as on 31st March 2013. The yield on investments, excluding profits, improved from 7.48% in 2011-12 to 7.64% in 2012-13. The yield on investment including profit improved from 7.67% to 8.04% during the same period.

FINANCIAL HIGHLIGHTS

NET INTEREST INCOME

The Bank's total interest income

increased from `6291.36 crore

during 2011-12 to `7498.19 crore

during 2012-13, recording a growth

of 19.18%. Interest expenditure

increased by 21.19% to `4932.38

crore, as against 4069.96 crore in the

previous year. The net interest income

recorded a growth of 15.50% to

`2565.81 crore, as against `2221.40

crore in 2011-12. The net interest

margin decreased from 3.70% for the

year ended March 2012 to 3.62% for

the year ended March 2013.

NON-INTEREST INCOME

The non-interest income of the Bank

has increased by 21.25% from

`598.97 crore in 2011-12 to `726.28

crore during 2012-13. The increase

during the year as compared to the last

year is mainly on account of increase

in profit on Forex turnover by `51.62

crore, profit on sale of investment by

`46.96 crore and recovery in Written-

off accounts by `22.21 crore.

OPERATING EXPENSES

The operating expenses recorded

a growth of 18.67% from `1330.76

crore in 2011-12 to `1579.22 crore

during 2012-13. Of this, employee

costs increased by 20.46% to 987.53

crore, while total other operating

expenditure increased by 15.80% to

`591.69 crore.

PROFIT

During 2012-13, the operating profit increased to 1712.87 crore, recording a growth of 14.99% as against `1489.61 crore in the previous year. The net profit recorded a growth of 11.99% from `652.03 crore in 2011-12 to `730.24 crore in 2012-13.

DIVIDEND

During the year 2012-13, the Bank declared an Interim Dividend of 161% i.e. `16.10/- per equity share (face value of share `10/- per share) which is 11.03% higher than dividend of 145% i.e. `14.50/- per share declared in the previous year. Record date for ascertainment of entitlement of shareholders for Interim Dividend was 29th March, 2013. Interim dividend may be treated as final dividend.

KEY FINANCIAL INDICATORS

The Return on Assets of the Bank stood at 0.96% during 2012-13 as against 0.99% in the previous year. The return on equity decreased to 15.33% as against 15.66% in the previous year. The earnings per share also increased from `95.05 in 2011-12 to `104.32 in 2012-13, while the book value per share improved from `594.98 in 2011-12 to `678.74

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A Hydroelectric Project Financed by the Bank

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in 2012-13. As at end-March 2013, the capital adequacy ratio of the Bank stood at 11.81% and 12.16% as per Basel I and II norms respectively, as against 12.81% and 13.76% as per Basel I and II norms respectively, as at

end-March 2012. This was well above

the RBI benchmark of 9%. Due to

rise in NPAs on account of continued stress faced by the industrial sector coupled with agriculture NPAs, the Bank's Gross NPA ratio and Net NPA ratio increased from 3.30% and 1.92% respectively as at end-March 2012 to 3.62% and 2.27% respectively, as at end-March 2013. The average business per employee increased to `900 lakh during 2012-13, as against `827 lakh in the previous year. The net profit per employee improved to `5.91 lakh during 2012-13, compared to `5.42 lakh during 2011-12. The average business per branch increased to `112.42 crore during 2012-13, as against `104.73 crore in the previous year.

CREDIT MANAGEMENT

The overall credit demand remained subdued during the FY 2012-13, even though there were signs of economic recovery. However, the Bank continued to focus on qualitative credit growth and faster credit delivery. Total advances of the Bank grew by 16.98% during 2012-13, as against a growth of 19.77% during 2011-12.

The Bank’s Commercial & Institutional (C&I) segment advances (other than food credit) registered a growth of `4705 crore (16.47%), while non-C&I segment comprising personal, small business and agricultural advances increased by `3809 crore (17.76%) during 2012-13. The impetus of financing remained mainly towards infrastructure development, such as power and road, besides other sectors such as steel, textiles and non-banking finance companies.

In view of the prevailing competitive market scenario, closer interaction

and regular meetings by the Top Management with high value customers were held at major centers in the country.

PERSONAL BANKING

During 2012-13, personal segment business has crossed `50000 crores mark with `41752 crores of deposits and `9131 crores of advances. The retail deposits recorded an escalation of `6094 crores on the base level of `35658 crores which is a YoY growth of 17.09% while retail P segment advances grew by `1142 crores taking the retail advances portfolio to `9131 crores.

The Bank has launched one Incentive linked Deposit mobilization Campaign for the entire FY 2012-13, to counter the fierce market competition posed by private players, who are offering higher interest rates to customers post RBI's guidelines for deregulation of interest rate in SB deposits. Apart from this year long campaign, to broaden the customer base two more Campaigns to open SB accounts were also launched and in the process, Bank has crossed the land mark of having more than One crore SB accounts in its books. During the year we have opened a record number of 19.31 lakh new savings deposit accounts as against 11.36 lakh accounts during the previous year 2011-12. Year 2012 was also celebrated as "Golden Jubilee Year" by the Bank and to commemorate this memorable event a new 50 week (350 days) term deposit product named 'GOLDEN JUBILEE DEPOSIT PRODUCT' was also launched by offering higher rate

of interest to our esteemed patron customers.

Despite the gloomy economic scenario coupled with RBI’s tightening liquidity norms, the bank was able to sanction `3309 crores in 1.11 lakh new advances accounts as against last year's of `2805 crores under various loan schemes in the personal banking segment. This year bank has recorded a robust growth of 60.86% in disbursement of P segment car loans. During the fiscal 2012-13, with fresh sanctioning of 14531 car loans, the car loan portfolio grew by 43.53% over March 2012. Our unique innovative technology based initiative, 10 Minute On line sanction of Car Loan rolled out during the last financial year was also instrumental in pushing car loans apart from our launching campaigns during the festive seasons during the year entire fiscal year 2012-13 by extending concessions in interest rates and processing fee.

To keep in pace with the market trends and dynamics, we have reoriented and modified our existing loan schemes such as Home loan, Car loan, Gold Loan and Education loan schemes by readjusting Interest rates, Processing fee and eligibility norms. At the behest of Government Of India, for providing institutional funding for the students undergoing specialized skill development programs in recognized institutions one education loan scheme “Model Loan Scheme for Vocational Education and Training” was also launched,

The Bank at the behest of MOHRD, Government of India is continuing an Interest Subsidy Scheme for “Economically weaker section (EWS) on Education loan borrowers” and claimed `12.33 crore amount in 8714 beneficiaries accounts.

PRIORITY SECTOR LENDING

Priority Sector advances continued to remain the major thrust area of the

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Bank's business. As at end March 2013, the Bank's priority sector advances increased to a level of `20807 crore as against 17690 Crore in the previous year. This constituted 41.61% of the Adjusted Net Bank Credit, against the RBI benchmark of 40%. Priority Sector Advances in Rajasthan stood higher at 65.85% of Rajasthan's ANBC as on 31st March, 2013.

AGRICULTURE

Lending to agriculture remains one of the major thrust areas of the Bank. The flow of credit to agriculture increased from 6825 crore in 2011-12 to 8376 crore in 2012-13, recording a growth of 126%. The outstanding level of agriculture advances increased by 1.73% from `9032 crore as at the end of March, 2012 to `9188 crore as at end of March, 2013. Our Bank’s total direct agriculture lending is 89.81% amounting to `8252 crore, and has registered a growth of 13.94%. Due to change of priority sector guidelines a major portion of indirect Agriculture has been classified under MSME and this has impacted the overall growth in Agriculture Advance.

Agriculture credit constituted 18.38% of the Adjusted Net Bank Credit,

which was above the RBI benchmark of 18%. In the state of Rajasthan, the agricultural advances stood even higher at 34.87% of the Adjusted Net Bank Credit.

The Bank has issued 111911 Kisan Credit Cards (KCCs) with sanctioned amount of `2018.99 crore during the financial year, taking the total number of KCCs to 515520 as at end-March 2013. The bank issued 53615 new KCC with a growth of `951.68 in production credit, which constituted 11.61% growth of New KCC and amount wise growth of 19.58% after sale of `400 crore crop loans through IBPC. The Bank has added 189 new farmers per rural and semi-urban branch during the year.

In order to bring the farmers out of the clutches of the money lenders, the Bank introduced a Debt Swap Scheme in the year 2008. During 2012-13, assistance disbursed under the Debt Swap Scheme stood at `56.71 crore, benefiting 12118 farmers. The outstanding assistance under the scheme increased from `291.19 crore as at end-March 2012 to `320.44 crore as at end-March 2013. The number of beneficiaries under the Scheme also increased from 70377 in the previous year to 73583 farmers

in March 2013, recording a growth of 4.60%. By providing financial assistance under this scheme Bank has made the villagers of 42 villages completely free from the clutches of private money lenders.

FINANCIAL INCLUSION (FI)

Our Bank has embarked upon its journey to implement the FI initiatives in the unbanked service area villages through ICT enabled banking correspondent outlets. 794 business Correspondents have been engaged to cover 823 villages and brick and mortar branches have been opened in 6 villages to cover 829 villages with population of 2000 and above allocated to our Bank for providing banking services by 31.03.2012. In these villages 229652 accounts have been enrolled.

Now the concept of coverage under FIP has changed and as per new concept, a BC has to cover all the villages falling in a Gram Panchayat. We have 1878 Gram Panchayats in our Bank's service area in the state of Rajasthan. Out of these, in 369 Gram Panchayats our Brick and mortar branches are functioning and in 792 Gram Panchayats we have already engaged BCs/BCAs. The remaining 717 Gram Panchayats, will be covered by engaging CSCs as BCAs/ Individual BCs / BCAs of any other Corporate BC who can work on KIOSK model, developed by TCS for SBI Group.

Financial Literacy: Bank is actively involved in Govt. of India sponsored Swabhimaan campaign enlightening the rural populace about FI initiatives. Pamphlets, brochures detailing the advantages of Bank accounts are distributed in FI villages to educate the rural public about the Bank's FI initiatives. Our Bank has already set up Financial Literacy & Credit Counseling Centres (FLCCs) in all the nine Lead Districts to impart literacy among rural population. These FLCCs have conducted 304 literacy camps and counselled 38759 persons during

Hon'ble Union Rural Development Minister

Sh. Jairam Ramesh Awarding RSETI

Stakeholder Award to Bank

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FLCCs

FLCCs

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the year 2012-13. Apart from this, the Bank has also set up 8 R-SETIs to train the potential Small Entrepreneurs to start their own ventures / business / entrepreneur for self employment in rural areas. The 8 R-SETIs have so far trained 27616 rural unemployed youth for various trades i.e. electric work, tailoring computer repair etc. Out of 27616 trained persons, 14762 persons belong to BPL families

Aadhaar Project of UIDAI: UIDAI has been setup by the Government of India with a mandate to issue a unique identification number to all the residents in the country based on demographic and biometric data of the individual. UIDAI has entered into Partnership with the Govt. and other agencies including Banks leveraging their existing infrastructure. These agencies are called the Registrars of UIDAI. Our Bank has also signed an MoU with UIDAI on 22nd January 2011 and has become a registrar in this project. Our bank has undertaken Aadhaar enrollments through an enrollment agency in the state of Rajasthan. More than 24 lac Aadhaar enrollments have been done till 31.03.2013 and 17.40 lac Aadhaar numbers have been generated so far and thus SBBJ is no. one among all the Associate Banks. Our Bank has successfully implemented Aadhaar

based payment system (APBS/NACH) through National Payment Corporation of India (NPCI) gateway. Seeding of Aadhaar Number in CBS account is under progress.

MICRO, SMALL AND MEDIUM

ENTERPRISES (MSMEs)

Micro, Small and Medium Enterprises (MSME), the main growth driver of the Indian Economy, accounts for 35% of manufacturing sector output, 40% of India's exports and provides employment to more than 6 crore persons in 1.5 crore enterprises. Accordingly, the Bank has also been according high priority to this area.

The Bank has assisted 4473 new MSME units during the year 2012-13. In order to boost MSME advances, we have revised our existing loan schemes viz. financing against Ware House receipts, Transport Operator Loan Scheme, Marble Plus Loan Scheme, Construction Equipment Loan Scheme, SME Car Loan Scheme. We have also entered into MOUs with JCB India Ltd., Tata Motors Ltd & Ashok Leyland Ltd for booking fresh advances. We have reduced spread on our base rate for MSME advances twice during the year and our interest rates are now very competitive.

As at end-March 2013, the outstanding credit to Micro and Small enterprises has increased by 25.46% to reach a level of `8127.36 crore, as against `6477.96 crore as at end- March-2013.

The Bank has continued its thrust to provide collateral free loans to MSE units under the credit guarantee scheme of CGTMSE. During the year, Bank provided new collateral free loans under Credit Guarantee Scheme of CGTMSE to MSE units amounting to `78.85 crore.

LOAN TO WOMEN BENEFICIARIES

As at end-March, 2013, 2.05 lac accounts of financial assistance were provided to women under different schemes of the Bank with a total outstanding of `2732.85 crore exists.

ASSISTANCE TO MINORITY

COMMUNITIES, WEAKER SECTIONS

AND SCHEDULED CASTES / SCHEDULED

TRIBES

As at end-March 2013, assistance to minority communities stood at `1043.26 crore spread over 78776 accounts.

Financing to weaker sections stood at `8237.10 crore benefiting 8.32 lakh persons as at end-March 2013. The ratio of assistance to weaker sections as a percentage of Adjusted Net Bank Credit is 16.47% as at end-March 2013. This was above the benchmark of 10% prescribed by RBI.

The outstanding assistance towards Scheduled Castes (SCs) / Scheduled Tribes (STs) stood at `1966.78 crore in 202556 accounts under priority sector as on 31st March 2013

GOVERNMENT BUSINESS

The Bank conducts Government Business on behalf of State/Central Government departments through 490 authorized branches. Income Tax, Central Excise, Service Tax, Value added tax etc. are collected through

SBBJ Marathon Organized by the Bank at Jaipur

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physical challans and also through the electronic mode. The Bank has established a Centralized Pension Processing Centre (CPPC) which calculates as well as credits pension to the accounts of pensioners across all the branches. We also have an Online Treasury Branch for online payment of Salary of Rajasthan Govt. employees on behalf of the State Government and presently our Online Treasury Branch is processing about 9 lacs State Govt. transactions received through 18000 digitally signed files in a month. During 2012-13 commission income from Government business was `114 crore.

INTERNATIONAL BANKING

The Bank provides Foreign Exchange related services to exporters/ importers, other resident and non-resident customers through a network of 66 Authorized Category "B" and 184 category ‘C’ branches and 4 Trade Finance Central Processing Centres (TFCPC). Bank's forex dealing room at Mumbai and all the authorized category ‘B’ branches are equipped with latest technology for real-time communication and are connected through SWIFT network with more than 750 offices of foreign banks throughout the world. The Bank maintains 20 NOSTRO accounts in all major currencies and non-account correspondent banking relationship with all major banking groups in the world. To facilitate NRI customers for inward remittances, there is online remittance facility and tie-ups with 5 Gulf based Exchange Houses. Our 231 branches are authorised for payment of Western Union Money Transfer.

The Bank also undertakes proprietary Forex trading to increase profit by taking advantage of market movements. Our Merchant forex turnover stood at `26717 crore at the end of March 2013, as against `19652 crore of last financial year, recording a growth of `7065 crore (35.95%) during the year. Our NRI deposits stood at 1249 crore at the end of March 2013 against the

base of `950 crore in March 2012, registering a growth of `299 crore (31.47%). Our export credit stood at `2334 crore at the end of March 2013 against `1931 crore of March 2012, recording a growth of `403 crore during the financial year. In percentage terms, the growth was 20.87%.

The Bank chairs the local chapter of Foreign Exchange Dealers' Association of India (FEDAI). The Bank is an active member of FEDAI, International Chamber of Commerce (ICC) and Clearing Corporation of India Limited (CCIL).

INDUSTRIAL REHABILITATION

Rehabilitation/ restructuring of potentially viable industrial unit remains an important thrust area of the bank. For this purpose, the bank has its own Industrial Rehabilitation Policy containing detailed guidelines for undertaking rehabilitation/ revival package and the same is updated from time to time. Whenever units are found non viable or not responding to the rehabilitation/ restructuring package, focus is shifted to recovery of Bank's dues through legal recourse such as action under SARFAESI/ compromise settlement/ assignment

of debt/ through courts/ Debt Recovery Tribunals (DRT).

As at end - March 2013, the Bank had 27 large sick/ weak units on its books with aggregate outstanding of 364.13 crore. There are 31 Corporate Debt Restructuring cases with aggregate exposure of `1193.20 crore and 25 BIFR cases with exposure of `413.78 crore. The Bank has been acting as BIFR's Operating Agency in 6 cases. During the year under review, 15 accounts with aggregate exposure of `808.52 crore have been restructured under CDR mechanism as warranted basically by the tight economic scenario. Sustained efforts are undertaken by the Bank in restructuring the accounts and post sanction close monitoring and follow up have resulted in retaining most of the restructured assets as Standard Assets.

NPA MANAGEMENT

The Bank continues with its multipronged strategy of controlling Non-Performing Assets (NPAs) through intensive monitoring of large value accounts, close follow-up with DRT/ BIFR, restructuring of viable accounts and effectively utilizing the remedies

Bank Received 'Skoch' Digital Inclusion Award

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available under the SARFAESI and

RODA Acts. Due emphasis has been

given to follow up with the courts

and filing of Execution Petitions.

During the year, 'Recovery Camps',

Bank Adalats and Lok Adalats were

organized for NPA recovery, the results

of which were quite encouraging. The

progress in NPA /AUCA recovery

is being discussed / reviewed by

the Management Committee by

conducting Video-conferencing with

all the Zones and DGM headed

branches. To contain the growth of

NPAs, MIS data based on system

tracking is being extensively used.

The accounts in SMA / probable NPA

category are also discussed in every

video conferencing to regularise the

position and to avoid any account

slipping into NPA. The level of SMA /

Probable NPA are also brought down

by removing technical snags. The

'Loan Tracking Center' monitors and

tracks the irregular standard accounts

from Head Office level. Pre-emptive

measures such as restructuring etc

are also taken as per RBI guidelines.

By adopting the above measures and

utilizing the provisions of SARFAESI

Act effectively, Bank also received a

number of acceptable compromise

proposals which resulted in good

recovery in NPA. Though there

has been recovery/upgradation of

accounts to the tune of `696.61

crore, the gross NPA and net NPA

levels increased to `2119.49 crore

and `1303.28 crore respectively with

the gross NPA and Net NPA ratio at

3.62% and 2.27% respectively as on 31.03.2013.

RISK MANAGEMENT STRUCTURE

OF THE BANK

The Bank has an independent Risk Management Framework in place. At the apex level, there is a Risk Management Committee of the Board (RMCB), which oversees the policies and strategies for Risk Management in the Bank. Credit Risk Management

Committee (CRMC), Asset Liability Management Committee (ALCO), Market Risk Management Committee (MRMC) and Operational Risk Management Committee (ORMC) provide support to RMCB. These sub-committees are required to place all critical issues/ development in their respective areas to RMCB. The Bank has Credit, Market and Operational Risks Management Policies for identification, measurement and management of major risks. These policies are reviewed and updated from time to time, keeping in view the dynamic business environment. Integrated Risk Management Department (IRMD) at the Head Office, functions under a Dy. General Manager. The IRMD acts as the nodal centre for coordination with other departments/ operating units engaged in managing risk in their respective business areas.

CAPITAL FRAMEWORK

BASEL II: Under Pillar-I of the New Capital Adequacy Framework (NCAF) guidelines issued by Reserve Bank of India, the Bank is computing Capital to Risk Weighted Assets Ratio (CRAR) using Standardised Approach for Credit Risk, Standardised Duration Approach for Market Risk and Basic

Indicator Approach for Operational Risk. Under Pillar-II of NCAF, the Bank has assessed capital requirement for 2012-13 for other risks in its Internal Capital Adequacy Assessment Process (ICAAP) document, a copy of which has been submitted to RBI. Basel-II Disclosures have been made by the Bank in the Annual Report as also on Bank's website as part of the Pillar-III guidelines of NCAF.

BASEL III: In order to improve the quality of capital and address the liquidity risk issues, Reserve Bank of India has issued final guidelines on implementation of Basel III Capital Regulation in India. These guidelines will be implemented in phases w.e.f. 01.04.2013. With a view to improve market discipline under Pillar III of Basel II framework as also to improve transparency of capital base, draft guidelines on disclosure requirements has also been issued by Reserve Bank of India. The Bank is ready for a smooth transition to Basel III regime.

CREDIT RISK

Credit Risk management remains a major task for Bank and receives prime

attention. Control and monitoring

of credit risk is dealt with as per the

Hon'ble Union Finance Minister, Govt. of India,

Sh. P. Chidambaram Donating an Ambulance

to Shri Amar Jain Medical Relief Society Jaipur

on behalf of Bank

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Board-approved Loan policy and

Credit Risk Management, Credit Risk

Mitigation & Collateral Management

Policy of the Bank. These policies

cover methodologies for measuring,

monitoring and control of credit risk. In

order to control the magnitude of credit

risk, prudential norms on benchmark,

financing ratios, single borrower or

borrower-group exposure, industry

specific and sector-specific exposure,

exposure to sensitive sectors, hurdle

rate for taking a fresh exposure etc.

have been set up. Credit appraisal

systems and a clearly defined

delegation of powers form an integral

part of the Bank's Loan policy.

MARKET RISK

To monitor market risks and treasury

operations, mid-offices (domestic

& forex) are functioning at IRMD.

Scenario Analysis on market risk

covering events such as decline in

stock markets, rise in bond yields and

foreign exchange rate movements are

conducted regularly as per the Stress

Testing Policy of the Bank to assess

resilience of Investment portfolio.

OPERATIONAL RISK

One of the major tools for managing

operational risk is to put in place a well

established internal control system,

which includes segregation of duties,

clear management reporting lines

and adequate operating procedures.

Most of the operational risk events are

associated with weak links in internal

control systems or laxity in complying

with the existing internal control

procedures. The Bank has developed

suitable systems and procedures for

managing and control of operational risks.

PREPARATION FOR ADVANCED

APPROACHES OF BASEL-II

Bank has decided to move over

to advanced approaches of

Basel-II guidelines for Credit, Market

and Operational Risks. Letter of

Intent (LOI) for Credit Risk has been

submitted to Reserve Bank of India,

for assessing Bank's preparedness

to move over to advanced approach.

LOI for Market and Operational Risks

will be submitted soon. Internal

Rating Based (IRB) Approach for

Credit Risk, Internal Models Approach

(IMA) for Market Risk and Advanced

Measurement Approach (AMA) for

Operational Risk will be followed under

advanced approaches, on approval

from Reserve Bank of India. The

advanced approaches will not only

help the Bank to maintain Economic

Capital, but will also strengthen the

risk monitoring and control aspects.

PROJECT GANGA

Since augmentation of capital is not

only costly, but its availability is also

scarce, efforts are being made for

optimum utilisation of the existing

capital. 'Project Ganga', which has

been launched in Bank on 16.10.2012,

aims at conservation of capital by

improving data quality. Cleansing of

data will lead to computation of the

Risk Weighted Assets of the Bank

more accurately and ultimately result

in lesser requirement of capital.

ASSET LIABILITY MANAGEMENT

A comprehensive Asset Liability Management (ALM) System is in place for effective management of Liquidity Risk and Interest Rate Risk. These Risks are assessed and

monitored through Structural Liquidity

Reports and Traditional Gap Analysis

respectively. The structural liquidity

report is being prepared and reviewed

on a daily basis as per RBI guidelines.

Both the risks on Foreign Assets

& Liabilities are being monitored

through Maturity & Positions (MAP)

and Sensitivity to Interest Rate (SIR)

statements. The monitoring of liquidity

on a dynamic basis, over a time

horizon spanning 1-90 days, is in

place. Duration Gap Analysis is also

used to manage interest rate risk for

the entire balance sheet.

The Asset Liability Management Policy,

coupled with Investment Policy of the

Bank specified various prudential

limits for management of Liquidity

and Interest Rate Risks. The Bank is

regularly monitoring these limits. A

comprehensive Contingency Funding

Plan and a system of daily monitoring

of inflows & outflows of deposits are

in place for managing Liquidity on a

day-to-day basis. Calculation of Value

at Risk (VaR) on Foreign Exchange

Forward Positions and Stress Testing

on Liquidity, Interest rate and Foreign

Exchange Open & Forwards Positions

is also undertaken.

INTERNAL CONTROL, INSPECTION AND AUDIT

The Bank has in place a well

established independent audit system

and structure to ensure adequate

internal control for safe and sound

operations. Internal Audit is carried

out under Risk Focused Internal

Audit (RFIA) as envisaged under Risk

Based Supervision of RBI with focus

on assessment of risk and internal

control mechanism.

The branches have been categorized

into three groups as per risk perception

and are subject to varying degrees of

audit. During 2012-13, 664 Branches

and 57 Cells under Business Process

Re-engineering (BPR) initiatives have

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been subjected to internal audit.

No branch of the Bank remained

overdue for audit as on 31.03.2013.

104 branches and 35 BPR initiatives

covering 67.81% of advances

including non-fund based business

and 41.12% of deposits have been

placed under continuous surveillance

through concurrent audit. Besides

13 Head Office Department are also

subjected to concurrent audit system.

IS Audit Cell is in place to conduct

IS audit of major IT establishments

including Core Banking project , Zonal

Computer Centres, etc. in accordance

with RBI directives and Bank's IT Security Policy.

As at end March 2013, 99.89% of the Bank's branches was rated "Well Controlled" and "Adequately Controlled".

RECONCILIATION OF INTER-OFFICE TRANSACTIONS

As per the RBI guidelines, all the entries need to be reconciled within a period of six months from the date of their origin. By the end of March 2013, the bank has reconciled inter-branch transactions originated up to 28.02.2013 i.e. well before the time limit prescribed. The Bank is committed to performing better than the target set by RBI and shall aim at reconciling all the entries within two months of their origin.

INFORMATION TECHNOLOGY

CORE BANKING SOLUTION (CBS)

All our branches are running successfully on Core Banking Solution. We were able to provide better customer satisfaction and services by providing many Value Added Services like; multi functional ATMs, Internet Banking, flexi deposit scheme, multi city cheque facility, instant credit of local and outstation cheques, introduction of RTGS/ NEFT and SBGRPT for the faster settlement

of funds etc.

MOBILE BANKING

Mobile Banking facility introduced in the year of 2009, for our customers having a Savings / Current Account. The product is named "State Bank Freedom". Presently, there is upper ceiling of `50000/- for fund transfer and for purchase of goods / services per day with in overall calendar month limit of `250000/-. In order to make the registration process more robust and to eliminate the threat of frauds/ phishing attempts, the registrations are enabled over ATM/CBS only if the mobile number entered matches with the mobile number already available in the customer’s CIF in CBS.

INTERBANK MOBILE PAYMENT

SERVICES (IMPS)

“Interbank Mobile Payment Service” now renamed as "Immediate Payment Service" (IMPS), was launched in our bank in the year of 2012 for enabling our Bank customers to use mobile instruments as a channel for remitting funds or to make various utility payments at shops and commercial

establishments; Making payment just with the MMID (Mobile Money Identifier) of the beneficiary in secure manner on 24X7 basis. The upper ceiling for remittance or payment of bills is same as in Mobile Banking facility.

AUTOMATED TELLER MACHINES (ATMS)

The Bank has installed 12 new networked ATMs during the year to take the tally of ATMs to 1087 All the ATMs are connected to the network of State Bank Group ATMs, thereby enabling more than 51.50 lac cardholders of the Bank to have access to over 29504 ATMs of the State Bank Group all over the country. Our Saving Bank customers can also access ATMs of other Banks free of charge up to five transactions per month, including balance enquiry, subject to a maximum of `10000/- per transaction.

INTERNET BANKING

All branches are enabled to offer Internet Banking facility to our retail as well as corporate customers. Looking to the rapid increase in the

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usage of Internet banking worldwide, the Bank has introduced several new features during the year. Apart from transferring funds from their account to another account in our Bank, our customers can now transfer amount from their account to any other account in any bank (through RTGS/NEFT), TDS enquiry for Term Deposits from the comfort of their homes or offices, opening/ closing of e-TDR/ e-STDR/ e-Recurring Deposit (RD) account, facility to view the details of Income-Tax deposited (26-AS). The transaction rights with single ID up to `5.00 lac per day per user for small corporate customers, named 'CINB Saral', has been provided. Retail Internet Banking facility for visually challenged persons has also been made available. For Corporate customers, a new facility 'I - Collect', for on line collection of funds has been provided.

Online payment of direct and indirect taxes have been enabled in our Internet banking. Our customers can now pay online Income Tax, Service Tax, Excise Duty, Customs Duty of Central Government, Value Added Tax (VAT) and Central Sales Tax (CST) of Rajasthan State Government and Maharashtra State Government. EGRAS and facility for online collection of all Tax and non Tax revenue of Rajasthan Government. Facility of online payment of Professional Tax of Maharashtra State Govt. has also been provided. Facility of online application for IPOs through our internet banking portal www.sbbjonline.com with ASBA (Application Supported with Blocked Amount) facility where investor customer continue to earn interest during the application process is available to internet banking users.

Facility of online booking of Railway / Air Tickets has been widely accepted. Electronic payment of railway freight (E-Freight) is gaining popularity. We have integrated number of Aggregator to our online system to provide the facility of wide range of merchants and utility billers to our Internet Banking users. Our customers can now make

payment to 10000 plus merchants / billers. Steps have been taken to further increase the merchants / billers list.

Bank has taken steps to increase awareness about Internet banking among staff as well as customers. Meeting with staff of Corporates and Institutions were regularly held, to popularize online payment of taxes a facility of "Zero Balance Internet Current Account" has been introduced.

ELECTRONIC PAYMENT SYSTEMS:

USAGE OF RTGS, NEFT & SBGRPT

Real Time Gross Settlement (RTGS)

is an instant payment and settlement

system and National Electronic Fund

Transfer (NEFT) is a scheme for inter-

bank funds transfer operated by the

RBI. Our Bank has taken several

measures to increase usage of RTGS

and NEFT system. All branches of our

bank are RTGS & NEFT enabled. Our

customers can make their inter-bank

remittances in a faster and secured

manner at very nominal cost, on any

RTGS / NEFT enabled branch of other

banks in India. SB Group Payment

(SBGRPT) functionality for electronic

funds transfer within State Bank Group is also available for customer.

SMS UNHAPPY

The "Project SMS Unhappy" launched by the Bank with the objective to provide a simple and economical way to the customers to represent their grievances and reduce complaint resolution time drastically, to below 48 hours, thereby enhancing the customer satisfaction level and creating a loyal customer pool.

INSTANT LOAN SANCTION

Bank is providing the facility of online instant sanction of Housing Loan and Car loan to the customers under the head "Home Loan in 20 minutes" and "Car Loan in 10 minutes" respectively on Bank's website http: //www.sbbjbank.com/.

Customer gets sanction letter instantly on submitting completely filled application form on Bank's website if he fulfills the eligibility criteria.

GREEN CHANNEL COUNTER

Bank has implemented "Green Channel Counter" facility at our 508 branches of Rajasthan , Delhi NCR, Mumbai, Bangalore and Ahmedabad. It is a paperless, eco-friendly and easy facility which would enable customers to pre-process selected transactions in a branch. This shall be carried out using a Transaction Processing device (TPD) placed at a Single Window Operator's (SWO) terminal and linked with the desktop of the SWO and integrated with the CBS application. This TPD would act as a transaction pre-processing device, which would be used by customer to enter data for a particular transaction authenticated by the four digits PIN provided for the ATM-cum-Debit Card. The facility provides safety and comfort to the customers by avoiding filling up of withdrawal forms / cheques / pay in slips and quicker service.

SALARY & OTHER PAYMENT

Bank has developed an application for centralized electronic processing of Rajasthan State Govt. Salary and other Payments from a centralised branch identified as 'Online Treasury Branch, Jaipur'. The Project has been successfuly implemented in the Bank and is smoothly handling Inter Bank Salary Payments through NEFT and GRPT Other Govt. Payments e.g. Utility Bills (Electricity and Telephone), Vendor Payments, Scholarship Payments, Employees Medical Bills, Bonus, Aadhaar Based Payments through APBS/NACH (for Individual Payments through Govt. Bills).

At present the system is handling the volume of 7 to 10 lac records with 15000 to 18000 files consisting of approx. `1500 crores per month through this application. With the increase in APBS/NACH payments the volume is expected to increase multiple folds in near future.

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ONLINE LOAN TRACKING SOFTWARE

Bank has introduced a web based application for Online Tracking of Loan application for customers and status of their application can be viewed by the customers on internet through our Bank's website.

NEW DEBIT CARDS

The following new range of Debit Cards for 'P' segment customers has been rolled out by the Bank:

i. State Bank Classic Debit Card (Magstripe) ;

ii. State Bank Silver International Debit Card (Magstripe) ; and

iii. State Bank Gold International Debit Card (Magstripe).

Bank is also planning to introduce EMV (Euro Pay, Master Card and Visa) compliant Chip based cards very soon. These are presently under testing and would be available for issuance to the high value customer segments:

i. State Bank Gold International Debit Card (Chip + Magstripe) ; and

ii. State Bank Platinum International Debit Card (Chip + Magstripe).

PREPAID CARDS

Bank has introduced the Rupee Pre-paid Card (eZPay Card). It will be useful for students and others, who undertake only one or two transactions in the month and maintain account for the purpose. The Rupee Pre-paid Card (eZPay Card) is equally useful for the Corporates, who have to make various payments to their staff or contractual labour. The cards can be reloaded and can be used in any ATM or with any POS merchant, any number of times during their validity period.

INFORMATION TECHNOLOGY (IT)

SECURITY

With the efforts of the Bank to popularize IT enabled services, the

threats and risks to our IT assets have increased manifold. To control these threats and risks the Bank has a comprehensive IT and Information Systems (IS) Security Policy that addresses all these concerns including maintenance of customers' confidentiality, security and integrity of data. State Bank's data centre where our CBS data base resides (both at the Primary and Disaster Recovery Site) has already acquired the accreditation for the international standard for Information Security Management Systems ISO/IEC: 27001: 2005. All the Banking applications have built-in security features like access control, data encryption and transmission through secured channels as per requirement of the application. The threat of virus and worms is minimized by having a centralized anti-virus solution.

Adequate Firewalls and Intrusion Detection Systems are in place so as to prevent unauthorized access to the network. The security of the network is being managed by Network Management Consultants of the Bank. The Disaster Recovery Plan (DRP) and Business Continuity Plan (BCP) for all branches are in place.

KNOW YOUR CUSTOMER/ANTI

MONEY LAUNDERING /COMBATING OF

FINANCING OF TERRORISM MEASURES

Bank follows Reserve Bank of India/ Government of India guidelines on Know Your Customer/ Anti Money Laundering / Combating of Financing of Terrorism. Prescribed documents relating to the identity and address are obtained from customers while opening their accounts.

With the objective of Universal Financial Inclusion, Bank facilitates opening of 'Small Account' by migrant labourers, street hawkers and other poorer sections of the society, with limited KYC documents.

In order to identify and examine

suspicious transactions, the Bank

has installed the AMLOCK software

besides setting up an ANTI Money

Laundering Cell at the Head Office.

The customers' accounts have been

divided into different risk categories

and alerts are generated once any

transaction exceeds a predefined

threshold limit. These alerts help in

identification of suspicious transactions,

which are further reported to Financial

Intelligence Unit, Government of India,

in appropriate cases".

Hon'ble Education Minister, Rajasthan State

Inaugurated Scheme of one Water Purifier by

every Branch to a Government School

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LOAN TRACKING

The Bank had set up the Loan Tracking Centre (LTC), a Centralized Outbound Call Centre at Jaipur in June 2011, for follow-up of Personal and SME Segment Loan accounts in IRAC4, IRAC3, IRAC2 and IRAC1 categories to avoid slippages of account into a hardcore NPA. Subsequently in 2012, the LTC started following up irregular AGR accounts also. The Call Executives at the LTC make calls to the borrowers, where contact details are available in CBS, in a sustained manner to recover the overdue amount and upgrade accounts in co-ordination with Branches / CPCs.

CUSTOMER SERVICE:

Customer Service is a top priority for the Bank. Our 'SMS Unhappy', 'Car Loan in 10 min', 'Housing Loan in 20 min' & 'Mission Five' have gone a long way towards this

The meetings of the Customer Service

Committee of the Board and Standing

Committee on Customer Service

were convened at regular intervals

to review the position of customer

service rendered. Similar Committees

are also functioning at Branches,

Zonal and Head Offices, which helps

in continuous improvement in service

standards.

The Bank is a member of the Banking

Codes and Standards Board of India

(BCSBI) and has voluntarily adopted

a 'Code of Bank's Commitment to

Customers,' which sets a framework

for setting a minimum standard of

banking services to be provided by

the banks.

The Bank has put in place a multi

pronged grievances redressal

mechanism to suit varied customer

requirements. An aggrieved customer

can either make a written complaint

at branch / regional / zonal / head

office of the Bank or make an online

submission in the form provided on

the Bank's website / through e-mail

against acknowledgement.

INTEGRATED CUSTOMER

GRIEVANCES REDRESSAL

MECHANISM (ICGRM)

In a series of Bank's techno driven and Go-Green initiative towards customer service, Integrated Customer Grievance Redressal Mechanism (ICGRM) software has been operationalised for FY 2013-14 with a view of speedy and timely redressal of grievances with the leveraging of technology. It will facilitate on-line up loading, comments and closure of complaints at various levels which ultimately result in cost-time saving with speedy redressal / logical conclusion thereof. The MIS data base of the same will be helpful in initiating corrective action / measure to eliminate root-cause of complaints and excelling customer service at branches.

DISCLOSURE OF COMPLAINTS/

UNIMPLEMENTED AWARD OF

BANKING OMBUDSMAN :-

In terms of RBI circular DBOD.No.Leg BC.60/09.07.005/2006-07 dated 22.02.2007, the information in respect of customer complaints and awards passed by the Banking Ombudsman is given in the Table below :-

A. Customer Complaints (Position upto March 2013)

(a) No. of Complaints pending at the beginning of the year

61

(b) No. of Complaints received during the year(*)

5959

(c) No. of Complaints redressed during the year(*)

5949

(d) No. of Complaints pending at the end of the year

71

(*) Excluding 1593 Complaints found not sustainable.

B. Awards passed by the Banking Ombudsman (BO) (Position upto March 2013)

(a) No. of unimplemented Awards at the beginning of the year

01*

(b) No. of Awards passed by the Banking Ombudsman during the year

09

(c) No. of Awards implemented during the year

05**

(d) No. of unimplemented Awards at the end of the year(Appeal has been made before Appellate Authority)

01

* Appeal allowed and award passed

by BO set aside by the Appellate

Authority.

** In remaining three cases, in 1 case

BO Jaipur has cancelled the award. In

2 cases complainant has not accepted

the award.

Community Service Programme: Donation of

Tricycles by Chairman Sh. Pratip Chaudhuri

34

31.03.2012 31.03.2013

486 996

116 122

136 155

206 224

792 844

159 185

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ATM COMPLAINTS

To monitor the ATM failed transactions related customer complaints received at the branches, ATM Complaints Reconciliation Cell has been established at Head Office. Reserve Bank of India has prescribed that all ATM related complaints be resolved within 7 working days. For faster resolution/ redressal of complaints, an online ATM Complaint Management System (ATMCMS) has been developed and implemented. During the year 2012-13, the Bank has received 41191 ATM failed transactions related complaints, out of which 40975 complaints were resolved. No home bank complaint (where customer and ATM both belong to our bank) is pending for more than 7 working days.

THE RIGHT TO INFORMATION (RTI)

The Right to Information (RTI) Department was constituted at the Bank’s Head Office in December,2010 for better coordination and effective implementation of the Right to Information Act, 2005. The applications received are disposed efficiently in a time bound manner as per provision of the Act and the appeals are also redressed in time.

During the year ended 31.03.2013, the RTI Deptt. received 1558 applications under the RTI Act, 2005, out of which 1530 applications were disposed and 28 applications were awaiting disposal as on 31.03.2013. All the pending 28 applications are less than one month old.

Besides, the Deptt. also received 97 appeals under the RTI Act,2005 during the year ended 31.03.2013 and all these 97 appeals stood disposed by the Appellate Authority as on 31.03.2013.

BUSINESS PROCESS

RE-ENGINEERING

Business Process Re-engineering (BPR) Initiatives stabilised further during 2012-13 and their coverage

extended to more branches. Bank operates 11 city-centric loan CPCs, viz. Retail Assets Central Processing Centre (RACPC)/ Small & Medium Enterprises City Credit Centre (SMECCC)/ Retail Assets and Small & Medium Enterprises City Credit Cell (RASMECCC) in end-state at 10 centres with 231 branches linked to them. Coverage of Rural Central Processing Centre (RCPC) increased to 299 branches at 19 centres. 17 Relationship Managers-Medium Enterprises (Hub Model) are working at 13 major business centres.

Non loan CPCs/ initiatives, viz. Liability Central Processing Centre (LCPC), Trade Finance Central Processing Centre (TFCPC), Currency Administration Cell (CAC), Central Pension Processing Cell (CPPC), Clearing CPC (CCPC), Multi Product Sales Team (MPST), Relationship Manager-Personal Banking (RMPB) have helped in further improvement in customer service. The coverage of various non loan CPCs / initiatives as on 31.03.2013 vis-à-vis 31.03.2012 was as under:

CPC / Initiative Branches Covered

31.03.2012 31.03.2013

LCPC 486 996

TFCPC 116 122

CAC / SCAB 136 155

Clg. CPC 206 224

CPPC 792 844

Branch Re-design 159 185

During Financial Year 2012-13, following developments took place to make CPCs / initiatives more effective and to optimize gains:

Rural CPC at Sribijaynagar started functioning w.e.f. 31.05.2012.

SCAB, Jaipur (erstwhile CAC-I and CAC-II) started functioning from 17.09.2012 at Collectorate, Jaipur premises.

At Jaipur centre, 3 CPCs viz. RACPC, LCPC, CCPC were shifted to a single premises where a 'National Back Office Centre' is

being created.

Linkage of all the branches with LCPC for SB accounts completed.

Shifting of back office activities to loan CPCs, implementation of revised roles for branch functionaries and better ambience in branches not only improved the Bank’s image but also helped the linked branches to focus more on customer service and marketing for business. BPR initiatives in the Bank are set to improve the quality of service further as also to increase the market share in business by leveraging technological changes.

CURRENCY MANAGEMENT

Being the Bank having the highest market shares in Rajasthan, RBI has designated 199 branches as Currency Chest branches in the state and 16 branches for other parts of our country. All of our Currency Chest branches are undertaking the following activities in an efficient Manner:

1. Circulation of New Currency

Notes among Public.

2. Distribution of Coins to the

Public.

3. Exchange of torn /damaged/

soiled/ Mutilated notes.

4. Providing of linkage facilities to

branches of other banks which

are linked to them.

5. Our 16 branches are providing

facilities of Note exchange and

coins distribution on 3rd Sunday of every month.

CROSS SELLING

The Bank continues to market life and non-life insurance, mutual fund and credit card products in order to augment its non interest income. For the purpose, the Bank has in place tie up arrangements with SBI Life Insurance Co. Ltd., SBI General Insurance Co.

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51st Annual General Meeting of Share holders

held at Jaipur on 24th May 2012

37

Ltd., SBI Funds Management Pvt. Ltd. and SBI Cards and Payments Services Pvt. Ltd. Various campaigns were launched for marketing of these products, which helped in getting a total income of `17.82 crore from cross selling activities.

COMMUNITY SERVICES BANKING

As a responsible Corporate Citizen, the Bank continues to undertake Community based Social activities such as tree plantation, free medical camps including blood donation camps, establishing of water huts & water coolers, sports competitions, honouring meritorious students etc. During the year 2012-13 the Bank donated Rupees Two Crores for relief Measures towards Rajasthan Chief Minister's Relief Fund and one ambulance each to Acharya Tulsi Cancer & Research Centre, Bikaner, Sewa Bharti Samiti Udaipur, Navjeevan Sansthan Jodhpur & Sri Amar Jain Medical Relief Society Jaipur and one Veterinary ambulance to Sri Gopal Goverdhan Goshala Pathmeda were made available.

Besides, one water purifier by every branch of bank to its nearby Government School, financial assistance to "Rays-Aasha ki ek kiran "working for HIV+ve children, distribution of Jaipur Foot & Tricycles to physically challenged persons, three delivery vans to the ISKCON food relief foundation for transportation of Mid-day meals to under privileged children studying in Govt. School, one digital X-Ray machine to Mahaveer International Dungarpur providing Medical relief to the poor & tribal patients were made available. Branches of the Bank continued to adopt one girl child each from a poor

family with an objective of providing

financial assistance for pursuing

studies in Government/Municipal

schools.

GOVERNMENT SPONSORED

SCHEMES

Laying utmost emphasis on Government sponsored schemes has

been amongst the major strategies of the Bank in pursuit of financial inclusion. The Bank continued to play a pioneering role in financing entrepreneurs under various government sponsored schemes. The position under various Government sponsored schemes as at end-March, 2013 is as under: -

Scheme Number of Beneficiaries

Amount sanctioned

during financial year (` crore)

Swarn Jayanti Shahri Rojgar Yojana (SJSRY)

2102 9.52

Prime Ministers Employment Generation Programme (PMEGP)

749 34.00

Swarn Jayanti Gram Swarojgar Yojna (SGSY)

4079 47.26

Artisan Credit Card Scheme

661 2.87

LEAD BANK SCHEME

The Bank has Lead Bank responsibility in nine Districts in the State of

Rajasthan viz. Bikaner, Barmer,

Hanumangarh, Jaisalmer, Jalore, Pali,

Sirohi, Rajsamand and Udaipur. The

Bank has been implementing and

monitoring the Annual Credit Plan

and other developmental and poverty

eradication schemes launched by

Govt. of India, Govt. of Rajasthan and

NABARD. Target allotted for Annual

Credit Plan to our Bank for the year

2012-13 is `2743 crore, against

which achievement of our Bank up to

March 2013, is 3810 crore, recording 139%.

MICRO CREDIT

At the end of March, 2013, the Bank has credit linked a total of 41349 Self Help Groups with an outstanding amount of `265.89 crore, out of which 34128 accounts are of women beneficiaries with an outstanding amount of `138.46 crore. NABARD has ranked the Bank as number one in Rajasthan State for its performance under Micro Credit continuously from the year 2004-05 to 2008-09. In the year 2009-10 our Bank has secured first position in Rajasthan for Micro Credit as per "Status of Micro finance in India 2009-10" published by NABARD. During the year 2010-11, our Bank secured 2nd position in SHG Credit Linkage. During the year 2011-2012 our Bank secured first position in SHG SB linkage and second position in SHG Credit linkage.

A Cement Unit Financed by the Bank

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(SJSRY)

2102 9.52

(PMEGP)

749 34.00

(SGSY)

4079 47.26

(ACC)

661 2.87

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RURAL SELF EMPLOYMENT

TRAINING INSTITUTES (RSETI)

In order to impart job- oriented skills to rural unemployed youth, the Bank has set-up seven RSETIs at Bikaner, Hanumangarh, Barmer, Jaisalmer, Jalore, Sirohi and Nathdwara (Distt. Rajsamand). The Bank has also set up a Skill & Entrepreneurship Development Institute (SEDI) at Jaitaran, Distt. Pali in association with Ambuja Cement Foundation (ACF).

By the end of March 2013, 27616 candidates have been imparted training for various local demand jobs in these institutions and with the help of this training,3756 candidates have been engaged in various jobs and 12467 candidates have started their own ventures. 5093 youth linked with Bank Finance of `29.66 crore.

FINANCIAL LITERACY AND

CREDIT COUNSELLING CENTRES

(FLCC)

In order to educate farmers and other people in rural / urban areas with regard to various financial products, various Bank schemes and services available from the formal financial sector, the Bank has set up 9 Financial Literacy and Credit Counseling Centres (FLCC) in all nine lead Districts in Rajasthan. These FLCCs are providing awareness service free of charge. Up to 31.03.2013, 38759 persons have been counseled by these centres.

REGIONAL RURAL BANK

"The MGB Gramin Bank (RRB sponsored by SBBJ) and Jaipur Thar Gramin Bank (RRB sponsored by UCO Bank) were amalgamated into a single Regional Rural Bank named 'Marudhara Gramin Bank' sponsored by SBBJ vide Government of India's notification dated 25.02.2013. Marudhara Gramin Bank with Head office at Jodhpur has a network of 458 branches spread over in 12 districts namely; Pali, Jalore,

Sirohi, Sriganganagar, Bikaner, Hanumangarh, Jaisalmer, Barmer, Jodhpur, Nagaur, Jaipur and Dausa. SBBJ continues to provide managerial support and financial assistance by way of refinance etc. to Marudhara Gramin Bank. All branches of Marudhara Gramin Bank are on CBS platform and provide Electronic Fund Transfer facility. Marudhara Gramin Bank has deposits of `4811 crore and advances of `3365 crore as on 31.03.2013. Marudhara Gramin Bank recorded profit before tax of `3.05 crore and net profit after tax of `2.11 crore during 2012-13.

BRANCH EXPANSION

During 2012-13, the Bank opened 90

new fully computerized branches. As

part of the Golden Jubilee celebrations

of the Bank, our Bank's 1000th Branch

at Sambhar was inaugurated by our

Hon'ble Union Finance Minister,

Govt. of India Sh. P. Chidamabaram

on 22.12.2012. As at the end of

March 2013, the total branches

stood at 1037, of which 373 are rural

branches, 291 semi-urban branches,

188 urban branches and 185 metro

branches. The number of branches in

Rajasthan has increased to 855 which

is the largest among all banks. Out of

these, 643 branches are located in

rural and semi-urban areas which play

an important role in rural development

and poverty alleviation in the State.

HUMAN RESOURCES DEVELOPMENT

The Bank’s staff strength as on

31.03.2013 is 12831 employees, with

the following break up: -

Hon'ble Governor of Rajasthan Awarded

Nabard's First Prize to Bank for Progress in

SHGs

Category of staff

Break up of Employees Out of which

SC ST General Total Women Minority

Officers

Clerical

Sub-Staff

Safai Karmchari

TOTAL

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Behavioural Science)

IIBF, NIBM CAB CAFRL

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Out of the Bank’s total staff strength

as on 31.03.2013, 2813 (21.92%)

belong to SC and 1196 ( 9.32%) to

ST categories. Reservation policy

is implemented in our Bank as per

Government guidelines.

Necessary complement of staff has

been made available for working

in new frontiers like core banking

solution, tele-banking, internet

banking, ATMs, credit/debit cards,

marketing, cross selling, business

process re-engineering etc. The Bank

has been according high priority

to training and sensitization of staff

members to respond to the customers’

expectations and deliver modern

banking facilities in the technology

driven environment.

Qualitative training for human

resources has become necessary for

improvement in the efficiency of human

capital. In this era of globalization,

privatization of banks and new

management concepts, the Bank has

to give high priority to training needs

to human resources to enable them

to cater the needs of its esteemed

customers. Looking to these facts,

a total no of 6641 employees of all

categories, including 300 employees

of the sponsored RRBs,were provided

training opportunities on various

subjects related to banking and

technology at all the three STCs of the

bank during the year.

The bank has also provided pre

recruitment training to 297 SC/ST

candidates appearing in the written

test for recruitment of clerical cadre

and officer cadre during the year.

In addition to this 35 seminars/

workshops were conducted on various

topics to up-date skills of employees.

More thrust has been accorded to

Mobile Banking Internet banking,

ATM services Soft skills, System

& Procedures, Marketing, quality

services to the customers in view of

the ever changing customer needs.

We have also conducted training

programmes on Management Skills

for first time posted Branch Managers

during the FY 2012-13.

Apart from in-house training, the

Bank has provided facility of training

to its officers in specialized areas

at apex training institutes like State

Bank Academy Gurgaon, State Bank

Staff College, Hyderabad, SBIICM

Hyderabad, SBIRD Hyderabad, CAB-

Pune, and IIBF-Mumbai. During the

said period 1175 officers have been

trained at these external agencies in

the areas of Core Banking Solution,

Forex, Fraud Detection, Market Risk

Management, Risk Management,

NPA Management, Stress Assets

Management, Legal option of recovery,

HR, SME, ATM, Behavioural science,

International Banking & Appraisal

of high value Credit Proposal. For

Various other programmes we have

also deputed our officers to Indian

Institute of Banking & Finance

(IIBF), NIBM-Pune, CAB-Pune, and

CAFRL-Mumbai etc.

During the current financial year, we

have deputed 7 officers for specialized

programmes held abroad in many

places like - 45th annual meeting of

Asian Development Bank (ADB) held

at Manila (Philippines), Annual meeting

of IMF & World Bank at Tokyo (Japan),

Beyond boundaries overseas training

at Harvard Business School, Boston

(USA), Advanced Management

Programme on towards the next orbit:

Indian Banking sector at New Delhi &

Europe, overseas training in Finance

Driving Corporate Performance,

China, Programme on Leadership

and Managing People at Pennsylvania

(Philadelphia).

We have taken a new initiative -by

launching of "Gyannodaya" e-learning

portal of SBBJ which will inculcate a

culture of self learning amongst the

employees. A scheme of deputing

top executives (GMs and DGMs) of

the bank for one training programme

of their choice, at reputed external

training institutions, has been started.

Similarly, we are also taking up steps

Bank's Foreign Exchange Stall in the Camel

Festival at Bikaner

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to arrange training programme on

leadership development for all AGMs

of the bank in reputed external

institutions. Another portal "Training

Needs" has been developed to make

on-line self nomination for the choice

training by the officers upto scale IV

cadre.

ORGANISATIONAL PLANNING

With a view to improving the levels

of supervision, organizational

effectiveness and overall efficiency,

one additional position of Chief General

Manager was created. The Chief

General Managers were designated

as Chief General Manager - Retail

Banking and Chief General Manager

- Commercial Banking. Functionalities

among Chief General Managers were

allocated. Seven additional positions

of General Managers were also

created. While 7 GMs were posted at

Head Office, 5 GMs were posted in

the field. 3 such GMs would lead the

3 Retail networks and 2 GMs would

lead the corporate networks. Roles

and responsibilities of the General

Managers were circulated and field

GMs were equipped by entrusting

adequate discretionary powers.

Keeping in view the availability of

significant business potential in and

around Alwar, which is one of the

fastest growing industrial estates,

a new Alwar Zone was created. For

greater focus on the AGM headed

branches to accelerate business

growth, such branches were brought

under the control of a separate DGM

by creating a position of DGM (Special

branches). This would also enable the

DGM, Delhi Zone to improve attention

over regions, and intensify efforts for

inclusive growth.

With a view to improving supervision

and monitoring of large corporate

accounts as also to ensure professional

services to such customers, the

incumbency of IFB, Jaipur branch,

Barakhamba Road, New Delhi branch

and Park Street, Kolkata branch were

upgraded from AGM's to DGM's.

In light of revised organizational

structure, the composition of various

non-board committees functioning at

the Head Office was also revised.

STAFF WELFARE

The Bank believes in keeping

the morale and motivation of the

employees high, considers employees

as its most important assets and

accords high priority to their welfare.

The Bank undertook staff welfare

activities like granting scholarships to the

meritorious wards of the employees,

providing free medical consultancy

services at various hospitals etc.

Insurance cover for employees to

the extent of `8.00 lac (`16.00 lac

for accidental death) under group

insurance scheme of SBI Life, Waiver

of housing loan of the deceased

employees, Overdraft limit (Personal

loan), PF loan and Conveyance loan

(upto `3.00 lac) and Special award

of `10000/- for education (one time

payment) to one ward of the deceased

employee. Reimbursement of funeral

expenditure is being made to the extent

of `10000/- from staff welfare fund.

Annual Health Check-up scheme has

been extended to the spouse of the

employees (age of employee between

41 to 49 years). Besides, relief to the

employees, who are on leave without

pay on sick ground, `15000/- per

month upto 24 months during the

entire service period is being extended.

The Bank has set up holiday homes

at Jaisalmer, Chandigarh, Mussoorie,

Jaipur, Manali, Mumbai, Goa, Delhi,

Haridwar, Katra , Bengaluru, Mt. Abu

and Udaipur. Various cultural and

sports activities were organized during

the year.

INDUSTRIAL RELATIONS

The Bank has a long history of

harmonious and cordial relations

with both supervising as well as

workmen employees enlisting

their total commitment, support

and cooperation. The Employee’s

Union and Officers’ Association

have extended their wholehearted

cooperation for the all-round growth

of the Bank. A well established and

an on going consultative machinery

is functioning at various tiers of the

administration for resolving issues

through joint consultations and

negotiations.

VIGILANCE ADMINISTRATION

Vigilance Administration is an integral

part of the management. Accordingly,

vigilance activities are being accorded

high priority in the Bank. Keeping in

view the paramount importance of

preventive vigilance, greater emphasis

is laid on the preventive measures.

The preventive vigilance comprises

the dissemination of knowledge and

precautions, to be exercised by the

operating staff while discharging

their duties. During the year, we have

conducted five training programmes

at various training centers, where

137 participants were benefited. In

many training programme conducted

at STC Jaipur, Chief Vigilance Officer

has interacted with participants on all

banking areas with focus on "How to

be a Vigilant Employee." Preventive

Vigilance Committee set up has been

revamped. Accordingly, branches

having staff strength of 10 or more, BPR

initiatives irrespective of staff strength,

unsatisfactory rated branches and

fraud detected branches, have been

included for formation of Preventive

Vigilance Committee. Meetings of

preventive vigilance committees are

arranged, where staff is sensitized

in regard to the preventive vigilance

measures. Complaints received in the

Vigilance Department are dealt with

expeditiously and in a professional

manner. In order to decide vigilance

44

45

angle, complaints received in the

Vigilance Department are put up to

the Internal Advisory Committee.

Significant emphasis is laid on

the transparency in the tendering

process (procurement of goods and

services, auctions etc.) by the Bank.

The tenders issued by the Bank are

uploaded on the Bank's website as

well as Government of India website.

The department is publishing its in-

house magazine titled as “Vigilance

Bulletin” on quarterly intervals. Certain

new initiatives have been taken as

preventive measures like Electronic

Voucher Verification, Online Tracking

of status of loan application by the

applicant, better pre-sanction due

diligence process etc.

The department has disposed of 242

complaints, 59 Investigations have

been initiated and in total 51 cases

of investigations have been disposed

of. 60 preventive vigilance inspections

were conducted. The constant

supervision of the cases resulted in a

disposal of 75 vigilance cases, during

the year 2012-13.

USE OF HINDI

The implementation of Official

Language Policy in the Bank is not

only a statutory requirement but also

a business need. The Bank made all

possible efforts to comply with the

statutory provisions relating to the

official Language Policy of the Govt. of

India during the year and took several

initiatives to provide benefit of Bank's

different schemes to the masses

through Hindi Language.

During the year 2012-13, the Bank

made significant progress in promoting

and propagating the use of Official

Language and ensured compliance of

various other statutory requirements

framed under the Official Language

Act /Official Language Rules. The Bank

made all possible efforts to achieve

the targets set by Official Language

Deptt. Ministry of Home affairs, Govt.

of India.

Bank continued its efforts to promote

use of Hindi in the field of Information

Technology. A portal of Rajbhasha

Vibhag was made available on Bank's

infonet site. Various useful materials like

Hindi typing tool, format of Quarterly

Progress Report, Annual Programme

etc. were made available on the portal.

Officers/employees were imparted

training to work on computer in Hindi

with the help of Unicode.

Hindi Day and Hindi-fortnight were

celebrated in Offices/Branches of

the Bank in the month of September

2012 and various competitions were

conducted for the staff members.

An All India Hindi Essay competition

was conducted by the Head Office.

The winners of the competition were

awarded certificates and prizes. To

increase progressive use of Hindi

'Head Office Rajbhasha Trophy'

competition (Head office and Zonal

level) was organized during the year.

Bank's quarterly in House Rajbhasha

magazine "Upwan" is being published

regularly. For last year this magazine

had been awarded by Reserve Bank

of India.

The third Sub-committee of Parliament

on Official Language visited the

Bank's Shiv Marg, Jaisalmer Branch

at Jaisalmer. Honourable members

of the committee appreciated the

efforts undertaken by the Bank in field

of Official Language implementation.

Representative of Govt. of India also

visited our Head Office and Zonal

Office Jaipur and appreciated our

efforts. Our Jaipur Zone had been

awarded Second Prize by Bank

TOLIC, Jaipur for official Language

implementation.

AUDIT

State Bank of India, with the

concurrence of the Reserve Bank of

India, approved the appointment of 6

firms of Chartered Accountants viz. S.

Daga & Co. of Hyderabad, Agarwal

Anil & Co. of Delhi, M K Aggarwal

& Co. of Delhi, Chaturvedi & Co.

of Kolkata, Uberoi Sood & Kapoor

of Delhi and PSD & Associates of

Jaipur as the Bank's Statutory Central

Auditors for the year 2012-13. The

scope of audit covered 587 branches/

centralized processing units as against

860 branches/ centralized processing

units covered in 2011-12.

RESPONSIBILITY STATEMENT

The Board of Directors hereby states:

1. That in the preparation of the

annual accounts, the applicable

accounting standards have

been followed along with proper

explanations relating to material

departures;

2. That they have selected such

accounting policies and applied

them consistently and made

judgments and estimates that

are reasonable and prudent so as

to give a true and fair view of the

state of affairs of the Bank as on

the 31st March 2013, and of the

profit or loss of the Bank for the

year ended on that date;

3. That they have taken proper and

sufficient care for the maintenance

of adequate accounting records

in accordance with the provisions

of the Banking Regulation Act,

1949, and State Bank of India

(Subsidiary Banks) Act, 1959

for safeguarding the assets of

the Bank and preventing and

detecting frauds and other

irregularities; and

46

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47

commitment, sense of involvement

and dedication exhibited by each

staff member and constructive role

played by the Employees’ Union and

Officers Association in the overall

development, growth and prosperity

of the Bank.

For and on behalf of the Board of

Directors

Delhi B. Sriram

6th May, 2013 Managing Director

4. That they have prepared the

annual accounts on a going

concern basis.

CORPORATE GOVERNANCE

The details on Corporate Governance

are annexed.

ACKNOWLEDGEMENT

The Board of Directors is grateful to

the valued customers, esteemed

shareholders and the public at large

for their patronage and confidence

reposed in the Bank and places

on record its deep appreciation.

The Board of Directors thanks the

Government of India, State Bank of

India, Reserve Bank of India and other

regulatory agencies for their valuable

support and guidance throughout the

year.

The Board of Directors places on

record its deep appreciation of the

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CORPORATE GOVERNANCE

BANK’S VISION AND MISSION

The Bank has codified its ethos, values, culture and aspirations in its Vision and Mission statements. The Vision and Mission statements were last revised in the year 2009-10 and the revised statements are as under:-

Vision: “To be a state-of-the-art, customer-centric, values driven and professionally managed banking organisation; committed to the highest standards of good corporate governance practices; perpetual enhancement of the wealth of the shareholders and welfare of all stakeholders and the society”.

Mission: “To provide one stop solutions to all the banking needs of customers through a highly motivated, professional and efficient human resources pool with quality of service, customer care and customers’ business in focus by efficient use of Information Technology in a cost effective manner; meeting the expectations of all stakeholders through transparent, true and fair disclosures and responsive management principles in all the activities; to strive to fulfil corporate social responsibility with special emphasis on financial inclusion throughout the State of Rajasthan and aiming to provide the best banking services to one and all”.

The major distinguishing features of the revised vision and mission statement was laying emphasis on being state-of-the-art bank, adopting good corporate governance practices, welfare of all stakeholders and the society, providing one stop solution to all customers, efficient use of information technology in a cost effective manner, transparent/ true/ fair disclosures, responsive management principles, fulfilling corporate social responsibility and implementing financial inclusion in

the State of Rajasthan.

BANK’S CODE OF CORPORATE

GOVERNANCE

Adoption of best corporate governance and practices is the first step in realising the goals set forth in our Vision and Mission statement and accordingly the Bank has adopted its code of Corporate Governance:

The State Bank of Bikaner and Jaipur is committed to the best practices in the area of Corporate Governance. The Bank believes that proper Corporate Governance facilitates effective management and control of business, which in turn, enables the Bank to deliver the best results to all its stakeholders. The objectives can be summarised as:

To enhance shareholders' value.

To protect interests of share holders and other stakeholders including customers, employees and society at large.

To comply with directives of RBI, SEBI and other regulatory authorities.

To ensure transparency and integrity in communication and to make available full, accurate and clear information to all concerned.

To ensure accountability for performance and to achieve excellence at all the levels.

To provide corporate leadership of the highest standard for others to emulate.

THE BANK IS COMMITTED TO:

Ensure that the Bank's Board of Directors meets regularly, provides effective leadership, exercises control over management and monitors executive performance.

Establish a framework of strategic control and continuously review its efficacy.

Establish clearly documented and transparent management processes for policy development, implementation and review, decision-making, monitoring, control and reporting.

Provide free access to the Board to all relevant information, advice, resources as are necessary to enable it to carry out its role effectively.

Ensure that the Managing Director has line of responsibility for all aspects of executive management and is accountable to the Board for the ultimate performance of the Bank and implementation of the policies laid down by the Board. The role of the Managing Director is also guided by the State Bank of India (Subsidiary Banks) Act, 1959 and Subsidiary Banks General Regulations, 1959 with all amendments.

Ensure that a senior executive is made responsible to the Board to ensure compliance with all applicable statutes, regulations and other procedures, policies as laid down by the Board and report deviation, if any, to the Board.

BOARD OF DIRECTORS

The State Bank of Bikaner & Jaipur was formed in 1963 by amalgamation of the State Bank of Bikaner & State Bank of Jaipur. The Bank is governed by State Bank of India (Subsidiary Banks) Act, 1959 and Subsidiary Banks General Regulations, 1959, as amended from time to time. Board of Directors is constituted according to the provisions of the Act and also complies with the provisions of the Listing Agreement entered with the Stock Exchanges.

The Board of Directors is headed by the Chairman of State Bank of India, as ex-officio Chairman of the Bank. Other members of the Board are; the Managing Director (Executive), two nominee Directors (one from the Govt. of India and other from RBI), not more

50

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1 1628031.48 1269500.00 239000.00 118176.00 3254707.48

51

than 5 Directors nominated by State Bank of India, of whom not more than 3 shall be officers of that Bank (nomination of non-official director by SBI shall be in consultation with Central Government) , one Director each from employees - workmen and non workmen, respectively and not more than three Directors elected in the prescribed manner by the shareholders (including nominated by SBI).

At present, besides the Chairman and the Managing Director, there are 10 Directors on the Board including three Directors elected/ nominated by the shareholders.

Details of attendance of each Director at the meetings of the Board of Directors and number of other Committees of the Board of Directors in which he is a member or chairperson are given in annexure I(a) and I(b) respectively. Brief resume of the other non-executive Directors are also presented in Annexure II.

The Directors are paid sitting fee of `10000/- for attending every meeting of the Board of Directors and `5000/- for attending meetings of the various Committees of the Board (w.e.f. 18.10.2011) apart from reimbursement of usual traveling and halting expenses. Sitting fees are not paid to the Chairman, the Managing Director and the Directors who are officials of SBI, RBI and Government of India.

All the non-executive Directors have declared that they do not have any pecuniary relationship vis-à-vis the Bank.

SALARY AND ALLOWANCES PAID

TO THE MANAGING DIRECTOR IN

2012-13

A sum of `3254707.48 was paid as total remuneration to Shri Shiva Kumar, Managing Director during the financial year 2012-13. It includes tax on perquisites paid by the Bank and incentives as given below:

S. No.

Name Salary & Allowance

Incentive Perquisites Tax on Perquisites

Total

1 Shri Shiva Kumar 1628031.48 1269500.00 239000.00 118176.00 3254707.48

SITTING FEES PAID TO DIRECTORS IN 2012-13

A sum of `1065000/- was paid as

total sitting fees to the Directors for the

meetings of the Board and its various

Committees during the financial year

2012-13.

BOARD OF DIRECTORS : CHANGES DURING THE YEAR

Shri B. Sriram, appointed as the

Managing Director of the Bank's Board

w.e.f 01.03.2013 under clause (aa) of

sub-section (1) of section 25 of the

State Bank of India (Subsidiary Banks)

Act, 1959 vice Shri Shiva Kumar who

relinquished the office on 28.02.2013

on his reaching superannuation.

Shri Pradip Kumar Sanyal, Dy.

General Manager (A & S Group), SBI

nominated on the Board by SBI on

13.06.2012 vice Shri B. Ramesh

Babu, who relinquished the office

on 22.05.2012 on his transfer from

Corporate Office.

Smt. Malvika Sinha, Chief General

Manager, Reserve Bank of India, New

Delhi nominated by Reserve Bank of

India, a Director under clause (b) of

sub-section (1) of the Section 25 of

the SBI (Subsidiary Banks) Act 1959,

vice Shri Rajesh Verma and joined

the Board on 22.08.2012.

Shri S.D. Bali, Officer Employee

Director nominated by Central

Government under section 25(1)(cb)

of the Act, joined the Board w.e.f.

01.11.2012 vice Shri Rajendra

Kumar Shah who demitted the

office on his superannuation on

31.10.2012.

Shri Rajeev N. Mehra, Chief

General Manager (A & S Group), SBI

nominated on the Board by SBI on

01.12.2012 vice Shri A. K. Deb, who

relinquished the office on 30.11.2012

on his superannuation.

Shri Mihir Kumar, Director, Govt. of

India, Ministry of Finance, Deptt. of

Financial Services (Banking Division)

nominated by Govt of India, a Director

under clause (e) of sub-section (1) of

the Section 25 of the SBI (Subsidiary

Banks) Act 1959, vice Shri Amrik

Singh and joined the Board on

12.12.2012

Shri Shyamal Acharya, Director,

under clause (c) of sub-section (1) of

the Section 25 of the SBI (Subsidiary

Banks) Act 1959 demitted the office

after being shifted from his present

assignment as DMD & GE (A&S) State

Bank of India on 29.11.2012.

Shri Sanjeev Sharma, Director,

under clause (d) of sub-section (1) of

the Section 25 of the SBI (Subsidiary

Banks) Act 1959 demitted the office

after completion of his tenure on

14.05.2012.

The Board of Directors places on

record its deep sense of appreciation

for the valuable contributions made

by Shri Shiva Kumar, Shri Shyamal

Acharya, Shri A.K.Deb, Shri B.

Ramesh Babu, Shri Rajesh Verma, Shri

Sanjeev Sharma and Shri Rajendra

Kumar Shah during their association

with the Board and welcomes the new

Directors on the Board.

BIO-DATA OF THE NEW DIRECTORS OF THE BOARD

Brief resume of the Directors who

joined the Board of Directors during

2012-13 is furnished below: -

Shri B. Sriram, Managing director,

has 31 years experience in SBI. During

52

(Public Debt Office)

II

53

the 31 years span of his career with

SBI, he handled various assignments

as General Manager and Chief General

Manager. Prior to assuming charge

as Managing Director, he was Chief

General Manager (Delhi Circle).

Smt Malvika Sinha has worked in

RBI Mumbai, Patna and New Delhi

handling departments of Foreign

Exchange, Public Debt Office,

Department of Banking Supervision,

Department of Banking Operations

& Development, Department of Govt

and Bank Accounts & Secretary

Deptt. Currently, she is handling Deptt

of Non-Banking Supervision, Issue

Deptt and Foreign Exchange Deptt in

New Delhi.

Shri Rajeev N. Mehra Chief General

Manager, has more than three

decades experience in SBI. During

his career with SBI, he handled various

assignments as General Manager and

Chief General Manager.

Shri Pradip Kumar Sanyal, Dy

General Manager, A&S Group, CC,

SBI, Mumbai and having experience

of banking of 32 years.

Shri Mihir Kumar Govt nominee

Director and is IAS, presently posted

as Director, Deptt. of Financial

Services, Ministry of Finance, Govt of

India, New Delhi.

Shri Sunil Dutt Bali Officer Employee

Director, having vast experience

in Banking and also known for his

expertise in personnel matters and

actively and effectively leading the

officers' community not only in the

SBBJ but also in other banks.

Brief Bio-Data of other Non Executive

Directors is furnished in Annexure-II.

BOARD MEETINGS

During the year 2012-13, 11 meetings

of the Board of Directors were held on

20.04.2012, 11.05.2012, 24.05.2012,

24.07.2012, 17.08.2012, 26.09.2012,

03.11.2012, 22.12.2012, 01.02.2013,

27.02.2013 and 23.03.2013. Details

of the attendance of the Directors are

as per Annexure I (a).

GENERAL BODY MEETINGS :

51st Annual General Meeting of the

shareholders of the Bank for the

financial year 2011-12 was held at

Maharana Pratap Auditorium, Jaipur

on, 24.05.2012 at 11.30 a.m., was

attended by the following 10 Directors

on the Board:

Shri Pratip Chaudhuri Shri Shiva Kumar

Shri Shyamal Acharya Shri Amrik Singh

Shri Kunal Dalmia Shri A. K. Deb

Shri Rajesh T. Manubarwala Shri Bharat Rattan

Shri Rajendra Kumar Shah Shri D.K. Jain

The previous two Annual General

Meetings for the financial year

2009-10 and 2010-11 were held at

Jaipur on 02.06.2010 (11.30 a.m.) and

06.06.2011 (12.00 noon) respectively.

COMMITTEES OF THE BOARD

The Board of Directors has constituted

9 Committees of the Board, viz.

1. Executive Committee of the

Board

2. Audit Committee of the Board

3. Risk Management Committee of

the Board

4. Directors' Committee of the

Board

5. Special Committee to Monitor

Large Value Frauds

6. Customer Service Committee of

the Board

7. Shareholders’/Investors’ Grievance

Committee of the Board

8. Remuneration Committee of the

Board

9. Nomination Committee of the

Board

EXECUTIVE COMMITTEE OF THE BOARD (EC)

The Executive Committee of the Board

is constituted as per the regulation

38(1) (a), (b) and (c) of the Subsidiary

Banks General Regulations 1959, and

consists of Managing Director, three

Directors nominated under clause (c)

of sub section (1) of Section 25 of

the SBI (SB) Act, 1959 by State Bank

of India of whom not more than two

shall be officers of the State Bank of

India, and one Director elected by the

shareholders under clause (d) of sub

section (1) of Section 25 of the Act.

The Committee was last reconstituted

on 09/07/2012. Any other Director

wishing to attend the meeting has

an option to do so. The Executive

Committee, apart from the special or

general directions of the Board given

from time to time, is empowered to

take decisions in respect of all current

business of the Bank.

The meeting of the Executive

Committee is required to be held at

least once in a calendar month. 16

meetings of the Executive Committee

were held during the year 2012-13

{details given in Annexure 1(c)}.

AUDIT COMMITTEE OF THE BOARD (ACB)

The Audit Committee of the Board

was reconstituted on 24.05.2012.

ACB has presently 4 members of

the Board of Directors, including RBI

and SBI Nominee Directors and two

independent non-executive Directors.

Shri Bharat Rattan, is the Chairman of

the Committee w.e.f. 06/06/2011. The

members of ACB as on 31.03.2013

are:

i) Shri Bharat Rattan- Chairman

ii) RBI Nominee Director- Member

iii) SBI Nominee Director- Member

iv) Shri Rajesh T. Manubarwala- Member

54

(i)

(ii)

(iii)

(iv)

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55

ACB provides directions as also

oversees the total audit function in the

Bank. The major role, functions and

powers of the ACB include: -

to oversee the Bank’s financial

reporting process and disclosure

of its financial information to

ensure that the financial statement

is correct, sufficient and credible.

to approve any payment to

Statutory Auditors for any other

service rendered by the Statutory

Auditors.

to review, with the Management,

the annual financial statements

before submission to the Board

for approval, with particular

reference to:

(a) Matters required to be

included in the Director’s

Responsibility Statement to

be included in the Board’s

Report.

(b) Changes, if any, in accounting

policies and practices and

reasons for the same.

(c) Major accounting entries

involving estimates based on

the exercise of judgment by

Management.

(d) Significant adjustments made

in the financial statements

arising out of audit findings.

(e) Compliance with listing and

other legal requirements

relating to financial

statements.

(f) Disclosure of any related

party transactions.

(g) Qualifications in the draft

audit report.

Review, with the Management,

the quarterly financial statements

before submission to the Board

for approval.

Review, with the Management,

performance of Statutory and

Internal Auditors, adequacy of the

internal control systems.

Review the adequacy of

inspection and audit function,

if any, including the structure of

the Internal Audit Department,

staffing and seniority of the

official heading the Department,

reporting structure, coverage and

frequency of internal audit.

Discuss with Internal Auditors of

any significant findings and follow

up thereon.

Review the findings of any internal

investigations by the Internal

Auditors into matters where there

is suspected fraud or irregularity or

a failure of internal control systems

of a material nature and reporting

the matter to the Board.

Discuss with Statutory Auditors

before the audit commences,

about the nature and scope

of audit as well as post-audit

discussion to ascertain any area

of concern.

Look into the reasons for

substantial defaults in the payment

to the depositors, debenture

holders, shareholders (in case

of non-payment of declared

dividends) and creditors.

Review the functioning of the

Whistle Blower mechanism.

Focus on follow up of Inter-Branch

adjustment account, unreconciled

long outstanding entries in

Inter-Bank and Nostro Account,

arrears in balancing books of

branches, frauds and all major

areas of housekeeping.

The Audit Committee mandatorily

reviews the following information:

(a) Management discussion and

analysis of financial condition and

results of operations.

(b) Statement of significant related

party transactions (as defined by

the Audit Committee), submitted

by Management.

(c) Management letters/letters of

internal control weaknesses

issued by the Statutory Auditors.

(d) Internal Audit reports relating to

internal control weaknesses.

In fulfillment of the above role, the

Audit Committee has the powers to

investigate any activity within its terms

of reference, to seek information from

employees and to obtain outside legal

and professional advise.

6 meetings of ACB were held during

the year 2012-13, with at least one

meeting in each quarter {details

furnished in Annexure 1(d)}.

RISK MANAGEMENT COMMITTEE OF THE BOARD (RMCB)

The RMCB consists of 5 members of

the Board of Directors viz. Managing

Director, SBI Nominee Director and

three Non-Executive Directors (viz.

Shri Kunal Dalmia, Shri Bharat Rattan

and Shri Rajesh T. Manubarwala).

The RMCB was last reconstituted

on 24.05.2012. RMCB oversees the

policy and strategy for integrated risk

management related to various risk

exposures of the Bank. 8 meetings

of RMCB were held during the year

2012-13.

DIRECTORS' COMMITTEE OF THE BOARD

In terms of Govt. of India directives

dated 24.10.1990, the Directors’

Committee of the Board is functioning

in the Bank. The Committee consists

56

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57

of the Managing Director (SBBJ),

RBI Nominee Director and the Govt.

Nominee Director. The Committee

is required to review the disposal of

vigilance and other disciplinary action

cases. 4 meetings of the Committee

were held during the year 2012-13.

SPECIAL COMMITTEE TO MONITOR LARGE VALUE FRAUDS

In terms of RBI guidelines, a

Special Committee of Directors

was constituted for monitoring and

follow-up of cases of frauds involving

amounts of `1 crore and above. The

committee was reconstituted on

24.05.2012. The Special Committee

meets and reviews at least four times

in a year and as and when a fraud

involving an amount of `1 crore and

above comes to light. The members of

the Committee are Managing Director,

SBI Nominee Director, Shri Bharat

Rattan, Shri Rajesh T. Manubarwala

and Shri Kunal Dalmia. 4 meetings of

this Committee were held during the

year 2012-13.

CUSTOMER SERVICE COMMITTEE OF THE BOARD

The Customer Service Committee of

the Board was constituted in terms

of RBI guidelines. The Committee

was reconstituted on 23/03/2013.

The present Committee consists of 3

members viz. Managing Director, Shri

Rajesh T. Manubarwala and Shri Kunal

Dalmia (Non-Executive Directors). 4

meetings of the Committee were held

during the year 2012-13.

SHAREHOLDERS’/ INVESTORS’ GRIEVANCE COMMITTEE OF THE BOARD

In terms of Clause 49 of the Listing

Agreement with the Stock Exchanges,

the Shareholders’/ Investors’

Grievance Committee of the Board

(SGCB) has been reconstituted on

06/09/2011 under the Chairmanship

of an independent Director. The

SGCB presently consists of the

following Directors, viz. Shri Arun K.

Saraf, Shareholder Director-Chairman,

Managing Director-Member and Shri

Kunal Dalmia, Shareholder Director–

Member.

The SGCB held 4 meetings (quarterly)

during 2012-13 to review the position

of complaints received. During the

year, 24 complaints were received

and all were satisfactorily resolved.

As on 31.03.2013, no complaint was

pending. No application for transfer

of shares was pending for more than

one month as on 31.03.2013. The

Bank is regularly following up with

the shareholders in the matter of

unclaimed dividends.

REMUNERATION COMMITTEE OF THE BOARD

In terms of Government of India,

Ministry of Finance, Department of

Economic Affairs (Banking Division)

letter F.No.20/1/2005-BO.I dated

March 9, 2007, the Government has

decided that the whole time Directors

of Public Sector Banks would be

entitled to performance linked

incentives subject to achievement of

broad quantitative parameters under

the Statement of Intent (SoI) entered

into with the Government of India.

The evaluation of performance would

be done by a Sub-Committee of the

Board consisting of (i) Government

Nominee Director, (ii) RBI Nominee

Director, and (iii) two other Directors.

The Remuneration Committee was

reconstituted on 24.05.2012 with the

Directors viz. Government Nominee

Director, RBI Nominee Director and

two other Directors, viz. (i) Shri Arun

Kumar Saraf and (ii) Shri Bharat Rattan.

One meeting of the Committee was

held during 2012-13.

NOMINATION COMMITTEE OF THE BOARD

In terms of RBI's guidelines, a

Nomination Committee of the Board

was constituted to determine ‘fit and

proper’ status of the elected Directors.

The Committee was reconstituted

on 19/07/2011. The Committee

consists of the following Directors viz.

(i) Shri Bharat Rattan – Chairman, (ii)

Government Nominee Director, and

(iii) SBI Nominee Director. During the

year, one meeting of the Committee

was held.

NAME AND DESIGNATION OF COMPLIANCE OFFICER (SHARES AND BONDS)

Smt Aruna Nitin Dak, Chief Manager

(Share & Bonds) has been designated

as the Compliance Officer.

CHANGES IN ACCOUNTING TREATMENT

The financial statements of the Bank

are prepared under the historical

cost convention. They conform to

the Generally Accepted Accounting

Principles in India, which comprise

the statutory provisions, regulatory/

RBI guidelines, accounting standards/

guidance notes issued by the Institute

of Chartered Accountants of India

(ICAI) and the practices prevalent in

the banking industry in India. Detailed

disclosures as per RBI guidelines/

accounting standards of ICAI and

accounting treatment are given in

Schedule 18 of the Balance Sheet.

58

(i)

(ii)

(i)

(ii) (iii)

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59

CORPORATE SOCIAL RESPONSIBILITY

As a responsible Corporate Citizen,

the Bank continues to undertake

Community based Social activities

such as tree plantation, free medical

camps including blood donation

camps, establishing of water huts &

water coolers, sports competitions,

honoring meritorious students etc.

During the year 2012-13 the Bank

donated `2 crore for relief Measures

towards Rajasthan Chief Minister's

Relief Fund and one ambulance each

to Acharya Tulsi Cancer & Research

Centre Bikaner, Sewa Bharti Samiti

Udaipur, Navjeevan Sansthan Jodhpur

& Sri Amar Jain Medical Relief Society

Jaipur and one Veterinary ambulance

to Sri Gopal Goverdhan Goshala

Pathmeda were made available.

Besides, one water purifier by

every branch of bank to its nearby

Government School, financial

assistance to "Rays-Aasha ki ek

kiran" working for HIV positive

children, distribution of Jaipur Foot

& Tricycles to physically challenged

persons, three delivery vans to the

ISKCON food relief foundation for

transportation of Mid-day meals to

under privileged children studying

in Govt. School, one digital X-Ray

machine to Mahaveer International

Dungarpur providing Medical relief

to the poor & tribal patients were

made available. Branches of the Bank

continued to adopt one girl child each

from a poor family with an objective

of providing financial assistance for

pursuing studies in Government /

Municipal schools.

CODE OF CONDUCT

In terms of Clause 49 of the Listing

Agreement entered into with the Stock

Exchanges, the Bank has adopted a

Model Code of Conduct for its Board

Members and senior management

functionaries, which has also been

uploaded on the Bank’s website. The

declaration for compliance with the

Code of Conduct has been taken

from the persons concerned and a

certificate affirming the compliance is

placed at Annexure-III.

The Bank has also framed a code

of conduct for its Directors and

designated employees for prevention

of insider trading in Bank’s securities.

Number of Bank’s shares held by the

Directors as on 31.03.2013 is given in

Annexure 1(e).

OTHER DISCLOSURES

The Bank has not entered into any

materially significant related party

transactions with its Promoters,

Directors, or Management, their

subsidiaries or relatives, etc. that

may have potential conflict with the

interests of the Bank at large.

The Bank has complied with applicable

rules and regulations prescribed by

stock exchanges, SEBI, RBI or any

other statutory authority relating to the

capital markets during the last three

years. No penalties or strictures have

been imposed by them on the Bank.

The Bank has complied in all respects

with the requirements of Clause 49

of the Listing Agreement with the

Stock Exchanges, to the extent that

the requirements of the Clause do

not violate the provisions of State

Bank of India (Subsidiaries Banks)

Act, 1959, the Rules and Regulations

made thereunder, and guidelines or

directives issued by the Reserve Bank

of India and State Bank of India.

Mandatory requirements of Clause

49 as to the composition of the

Board of Directors, composition and

quorum of the Audit Committee, Non-

executive directors’ compensation,

the appointment, re-appointment of

the statutory Auditors and fixation of

their fees are not binding on the Bank,

as separate provisions in the State

Bank of India (Subsidiary Banks) Act

1959, General Regulations and the

Reserve Bank of India guidelines deal

with the same.

CERTIFICATE OF COMPLIANCE

A certificate of compliance of

conditions of Corporate Governance,

as stipulated in Clause 49(vii) of the

Listing Agreement with the Stock

Exchanges has been obtained from

the Auditors and placed at Annexure-

IV. It is confirmed that stipulations of

Clause 49 have been complied with.

ANNUAL GENERAL MEETING FOR THE FINANCIAL YEAR 2011-12

The important observations in respect

of the matters pertaining to the “Profit

and Loss Account and the Balance

Sheet” made by the shareholders

in the last Annual General Meeting

held on 24.05.2012 and the Bank’s

responses are given in Annexure V.

DISCLOSURES UNDER BASEL-II

The Bank has migrated towards

Basel-II norms w.e.f. March 31, 2008.

In terms of RBI guidelines, the various

disclosures under Basel-II are given in

Annexure VI.

MEANS OF COMMUNICATION

Half-yearly and Quarterly results of

the Bank for the year 2012-13 were

published in one English financial daily

(all editions) and one/two Regional

Hindi newspapers (all Rajasthan

60

(vii)

IV

V

II

II

II

VI

www.sbbjbank.com

www.sbbjbank.com

gogreensbbj@

mcsdel.com

61

editions). The results are also displayed

on the Bank’s website www.sbbjbank.

com.

GREEN INITIATIVE

The Ministry of Corporate Affairs

(M C A), Government of India, has

advocated "Green Initiative in Corporate

Governance" through its Circular No.

17/2011 dated 21.04.2011 read

with Circular No. 18/2011 dated

29.04.2011 by allowing paperless

compliances through electronic mode

for service of documents. In line with

the Government initiative as above, the

Bank will send notices/documents

including Annual Report comprising

of balance sheet, profit and loss

account, director's report, auditor's

report etc. in electronic form to

the email address provided by the

shareholders and made available to

the Bank by the Depositories.

Full text of the documents will also

be made available on the Bank's

website www.sbbjbank.com. As

before, physical copies of the notices/

documents including Annual Reports,

will be available for inspection during

office hours at the Registered Office

of the Bank.

REGISTRATION OF EMAIL

ADDRESS:

For shares held in physical

form, shareholders can

register their email address at

'gogreensbbj@mcsdel.com' mentioning

their name and folio number or write to

the Bank. For shares held in electronic

form, Shareholders are requested to

register their email address with their

Depository Participant (DP).

62

I,

%

52549924 75.07

3643139 5.20

58961 0.08

1462729 2.09

1980201 2.83

1397061 2.00

8772321 12.53

129414 0.18

6250 0.01

cmshare@sbbj.co.in

I

admin@mcsdel.com

423.80 380.60 12270.13 11563.23 17664.10 17010.16

389.75 335.05 11955.47 10386.92 17432.33 15809.71

388.00 347.00 11926.62 10508.45 17448.48 15748.98

402.00 351.05 12405.76 11547.65 17631.19 16598.48

363.00 326.70 12208.36 11428.72 17972.54 17026.97

384.65 328.10 13241.96 11277.13 18869.94 17250.80

393.90 367.25 13481.46 12780.23 19137.29 18393.42

421.95 378.35 13965.19 12899.87 19372.70 18255.69

491.60 406.00 14439.96 13840.40 19612.18 19149.03

501.95 434.95 14865.95 14351.83 20203.66 19508.93

494.00 410.50 14620.48 13094.05 19966.69 18793.97

445.35 405.00 14040.08 12687.41 19754.66 18568.43

63

INFORMATION FOR GENERAL SHAREHOLDERS

a) Annual General MeetingPlace JaipurVenue

Date & Time

Maharana Pratap Auditorium, Bhartiya Vidya Bhawan, K.M. Munshi Marg, Opp. O.T.S., JaipurFriday, 7th June, 2013, 11.30 A.M.

b) Financial Year 01.04.2012 to 31.03.2013c) Date of Book Closure/ Record Date Record Date for Interim Dividend: 29.03.2013

Book Closure for AGM: 31st May, 2013 to 6th June, 2013 d) Dividend Payment Date Interim Dividend :- 08.04.2013e) Listing on Stock Exchanges BSE & NSE, Mumbai and JSE, Jaipurf) Stock Code 501061 (BSE), 231 (Jaipur Stock Exchange) & SBBJ (NSE)g) Share Transfer Agent M/s. MCS Limited

F 65, 1st Floor, Okhla Industrial Area, Phase I, New Delhi- 110020h) Share Transfer System Through Share Transfer Agent. Transfer/Transmission of shares approved by the Bank’s

“In-house Share Transfer Committee”.i) Dematerialisation of Shares

And liquidityThe Shares of the Bank have been dematerialized. The ISIN No. allotted by NSDL/CDSL is INE 648A01026. As on 31.03.2013, 95.09% shares of the bank have been dematerialized.

j) Details of outstanding GDRs/ ADRs/ warrants or any convertible instruments, conversion date and likely impact on equity.

NIL

k) Unclaimed Dividend The shareholders who have not encased their dividend warrants or have not received dividend of previous years, are requested to contact Shares & Bonds Department at Head Office, Jaipur for issue of duplicate dividend warrants.

MARKET PRICE DATA

MONTHS SBBJ’s Share Price BSE BANKEX BSE SENSEXHIGH LOW HIGH LOW HIGH LOW

April 2012 423.80 380.60 12270.13 11563.23 17664.10 17010.16

May 2012 389.75 335.05 11955.47 10386.92 17432.33 15809.71

June 2012 388.00 347.00 11926.62 10508.45 17448.48 15748.98

July 2012 402.00 351.05 12405.76 11547.65 17631.19 16598.48

August 2012 363.00 326.70 12208.36 11428.72 17972.54 17026.97

September 2012 384.65 328.10 13241.96 11277.13 18869.94 17250.80

October 2012 393.90 367.25 13481.46 12780.23 19137.29 18393.42

November 2012 421.95 378.35 13965.19 12899.87 19372.70 18255.69

December 2012 491.60 406.00 14439.96 13840.40 19612.18 19149.03

January 2013 501.95 434.95 14865.95 14351.83 20203.66 19508.93

February 2013 494.00 410.50 14620.48 13094.05 19966.69 18793.97

March 2013 445.35 405.00 14040.08 12687.41 19754.66 18568.43

DISTRIBUTION OF SHAREHOLDINGS (AS ON 31ST MARCH, 2013)

SHAREHOLDERS’ CATEGORYNo. of shares held % of shares held to Total

No. of shares

Promoter : State Bank of India 52549924 75.07

Mutual Funds /UTI 3643139 5.20

Financial Institutions /Banks 58961 0.08

Insurance Companies 1462729 2.09

Foreign Institutional Investors 1980201 2.83

Bodies Corporate 1397061 2.00

Individuals 8772321 12.53

Non Resident Indians 129414 0.18

Trust & Foundations 6250 0.01

Total 70000000 100.00

Address for correspondence : Chief Manager (Shares & Bonds) State Bank of Bikaner and Jaipur Head Office, Tilak Marg, “C” Scheme, JAIPUR - 302 005 Phone : 0141- 5101539 Fax : 0141-5101176 E-mail : cmshare@sbbj.co.in

MCS LimitedUnit: SBBJF-65, 1st Floor, Okhla Industrial Area, Phase- I, New Delhi- 110020 Phone: 011- 41406149Fax: 011-41406148Email: admin@mcsdel.com

64

I

65

ANNEXURE- I(a)

DETAILS OF ATTENDANCE OF DIRECTORS AT THE MEETINGS OF BOARD OF DIRECTORS DURING 2012-13

S.No. Name of DirectorMeetings held

during his / her tenure

Meetings Attended

Whether attended AGM

No. of other BODs / Board Committees he/ she is a member Director/ Chairperson

1Shri Pratip Chaudhuri

11 4 P Chairman/Director- 19

Committee member/ Committee Chairman-14

2Shri Shiva Kumar(Upto 28.02.2013)

10 10 PChairman/Director- N.A.

Committee member/ Committee Chairman-N.A.

3Shri B. Sriram(w.e..f. 01.03.2013)

1 1 NChairman/Director- Nil

Committee member/ Committee Chairman-Nil

4Smt Malvika Sinha(w.e.f.22.08.2012)

6 3 NChairman/Director- Nil

Committee member/ Committee Chairman-Nil

5Shri Rajeev N.Mehra(w.e.f. 01.12.2012)

4 2 NAChairman/Director- 4

Committee member/ Committee Chairman-Nil

6Shri Pradip Kumar Sanyal(w.e.f. 13.06.2012)

8 6 NAChairman/Director-1

Committee member/ Committee Chairman-Nil

7Shri A.K. Deb(Upto 30.11.2012)

7 5 PChairman/Director-N.A.

Committee member/ Committee Chairman-N.A.

8Shri B. Ramesh Babu (Upto 22.05.2012)

3 2 NAChairman/Director- N.A.

Committee member/ Committee Chairman-N.A.

9 Shri Kunal Dalmia 11 2 PChairman/Director- 11

Committee member/ Committee Chairman-Nil

10Shri Amrik Singh(Upto 11.12.2012)

7 5 PChairman/Director- Nil

Committee member/ Committee Chairman Nil

11Shri Mihir Kumar(w.e.f. 12.12.2012)

4 3 NAChairman/Director- Nil

Committee member/ Committee Chairman-Nil

12Shri Rajendra Kumar Shah(Upto 31.10.2012)

6 6 PChairman/Director- Nil

Committee member/ Committee Chairman Nil

13Shri Sunil Dutt Bali(w.e.f. 01.11.2012) 5 5 NA

Chairman/Director- Nil Committee member/ Committee Chairman Nil

14 Shri D. K. Jain 11 10 PChairman/Director- Nil

Committee member/ Committee Chairman Nil

15Shri Rajesh T. Manubarwala(w.e.f. 20.04.2011)

11 10 PChairman/Director- Nil

Committee member/ Committee Chairman Nil

16Shri Bharat Rattan (w.e.f. 15.05.2011)

11 11 PChairman/Director- Nil

Committee member/ Committee Chairman Nil

17Shri Arun K. Saraf(w.e.f. 12.08.2011)

11 6 NChairman/Director- 15

Committee member/ Committee Chairman-Nil

18Shri Sanjeev Sharma(Upto 14.05.2012)

1 1 NAChairman/Director-N.A.

Committee member/ Committee Chairman-N.A.

19Shri Shyamal Acharya(up to 29.11.2012)

7 3 PChairman/Director-N.A.

Committee member/ Committee Chairman-N.A.

P -Attended N - Not attended N.A. - Not applicable

66

I

1

2

3

4

5

*

6

7

8

9

10

*

*

67

ANNEXURE – I (b)

LIST OF BOARD OF DIRECTORS AS ON 31.03.2013

S. No.

Name of Director

Designation Appointed since

Address No. of Committees of which he/ she is a Member/Chairperson

1 Shri Pratip Chaudhuri

Chairman 07.04.2011 ChairmanState Bank of India, Corporate CentreMadame Cama Road, Mumbai-400021

Chairman- Nil Committee Member-Nil

2 Shri B. Sriram Managing Director

01.03.2013 Managing Director State Bank of Bikaner and JaipurHead Office, Tilak MargJaipur - 302 005

Chairman- 5 Committee Member-1

3 Smt Malvika Sinha RBI Nominee Director

22.08.2012 Chief General Manager,Deptt of Non-Banking Supervision, Issue Deptt and Foreign Exchange Deptt, Reserve Bank of India, New Delhi

Chairman- Nil Committee Member-3

4 Shri Rajeev N. Mehra

SBI Nominee Director

01.12.2012 Chief General Manager (A & S Group)State Bank of India, Corporate Centre, Mumbai–400 021

Chairman- Nil Committee Member-5

5 Shri Pradip Kumar Sanyal

SBI Nominee Director

13.06.2012 Dy. General Manager (A&S)Associate Banks DepartmentState Bank of IndiaCorporate Centre, Mumbai-400021

Chairman-Nil Committee Member-5*

6 Shri Rajesh T. Manubarwala

Director 20.04.2011 2615/9 A, Near Hotel Laxmi, GIDC Asian Paint Char Rasta, Ankleshwar-393002

Chairman- 1 Committee Member-4

7 Shri Bharat Rattan,

Director 15.05.2011 B. Rattan & Associates,Shop No. 408-409, Mahak Tower, Kailash Cinema Road, Civil Lines Ludhiana-141001

Chairman-2 Committee Member-4

8 Shri Arun K Saraf Shareholder's elected director

12.08.2011 Managing Director,, Juniper Hotels Pvt Ltd., Grand Hyatt Mumbai, Santacruz,MUMBAI-400005

Chairman-1 Committee Member-2

9 Shri Kunal Dalmia, Shareholder's elected director

12.08.2010 Lindsay Tower, 9th Floor,13, Nelisen Gupta Sarnee,Kolkata-700087

Chairman- Nil Committee Member-4

10 Shri Mihir Kumar Central Government Nominee Director

12.12.2012 Director, Govt. of India, Ministry of Finance, Deptt. of Financial Services (Banking Division), 3rd Floor, Jeevan Deep Bldg., Parliament Street, New Delhi.-110001

Chairman- Nil Committee Member-3*

11 Shri Sunil Dutt Bali Officer Employee Director

01.11.2012 Muskan, Sector IV,Vidyadhar Nagar, Jaipur

Chairman- Nil Committee Member-Nil

12 Shri D.K. Jain, Workmen Employee Director

12.01.2011 S. W. O. State Bank of Bikaner & Jaipur, Z. O., Patel circle, Udaipur-313001

Chairman- Nil Committee Member-Nil

* Shri Rajeev N. Mehra and Shri Pradip Kumar Sanyal are nominated on the Audit Committee of the Board in their respective capacities.

68

142

132

102

13

319

2 1

12 3

16 9*

9 1*

412

45*

412

2*8

7 7*

*

I

I

69

ANNEXURE - I(c)

ATTENDENCE OF EC MEETINGS DURING 2012-13

S.No. NAME OF DIRECTOR MEETINGS HELD DURING HIS/HER TENURE

MEETINGS ATTENDED

1. Managing DirectorShri Shiva KumarShri B. Sriram

142

132

2. SBI NomineeShri A.K. DebShri B. Ramesh BabuShri Pradip Kumar Sanyal

102

13

319

3. Shri Sanjeev Sharma 2 1

4. Shri A.K. Deb 12 3

5. Shri D. K. Jain 16 9*

6. Shri Rajendra Kumar Shah 9 1*

7. Shri Rajesh T. Manubarwala 412

45*

8. Shri Bharat Rattan 412

2*8

9. Shri Sunil Dutt Bali 7 7*

* Meeting attended as non member of the Committee.

ANNEXURE - I(d)

ATTENDENCE OF ACB MEETINGS DURING 2012-13

S.NO NAME OF DIRECTOR MEETINGS HELD DURING HIS/HER TENURE

MEETINGS ATTENDED

1. Shri Bharat Rattan(Non Executive Director, Chairman)

6 6

2. RBI NomineeShri Rajesh VermaSmt. Malvika Sinha

24

01

3. SBI Nominee 6

Shri Rajeev N MehraShri Pradip Kumar SanyalShri A.K. Deb

040

Shri B. Ramesh Babu 1

Shri Kaushal Kishore 1

4. Shri Rajesh T. ManubarwalaNon Executive Director

5 5

5. Shri Amrik Singh(C. Govt. Nominee Director) Meeting attended as special invitee.

1 1

70

100

1901

225

I

71

ANNEXURE -I(e)

NUMBER OF SHARES HELD BY THE DIRECTORS

(AS ON 31.03.2013)

No. Name of Director No. of Shares held by the Director

1 Shri Pratip Chaudhuri Nil

2 Shri B. Sriram Nil

3 Smt Malvika Sinha Nil

4 Shri Rajeev N Mehra Nil

5 Shri Pradip Kumar Sanyal Nil

6 Shri Rajesh T. Manubarwala Nil

7 Shri Bharat Rattan, Nil

8 Shri Arun K Saraf 100

9 Shri Kunal Dalmia, 1901

10 Shri Mihir Kumar Nil

11 Shri Sunil Dutt Bali 225

12 Shri D.K. Jain, Nil

72

II

III

73

ANNEXURE – II

BRIEF RESUME OF OTHER NON-EXECUTIVE DIRECTORS

Shri Rajesh T. Manubarwala, is a Tax consultant by profession and also having Bar Council membership. He is having 35 years experience in his profession. He is also trustee in Sanskardeep School, GIDC, Ankleshwar

Shri Bharat Rattan, is a Chartered Accountant by profession having experience of 17 years. He has been engaged with various types of audit (Concurrent audit, Special Audit, Statutory Audit) of various banks, Govt Deptt, Insurance Companies. He is also having license of Insurance Surveyor.

Shri Arun Kumar Saraf, is well known businessman and Director on the Boards of various companies engaged in hotel business. He is having rich experience of development of new hotels, mobilizing funds for the projects, inking various land-purchase agreements.

Shri Kunal Dalmia, is renowned industrialist and director on the Board of various companies engaged in manufacturing refractory products, pulp and paper, Export of Engineering products, Real Estate etc. He is President of Arcelor Mittal Refractories, Poland. He is also associated with various chambers of Commerce and Industries Organisations.

Shri D. K. Jain, is workman director and single window operator, SBBJ and working at Zonal Office, Udaipur.

ANNEXURE – III

DECLARATION OF COMPLIANCE WITH THE CODE OF CONDUCT

I confirm that all Board Members and Senior Management have affirmed Compliance with the Bank's Code of Conduct for the financial year 2012-13.

Delhi B. Sriram06.05.2013 Managing Director

74

IV

( ) ( ) ( 99374)

( 12705) ( 80527) ( 072332)

75

For S. DAGA & CO.

Chartered Accountants

(CA SHANTI LAL DAGA)

(M.No. F-11617)

PARTNER

Firm Reg. No. 000669 S

For AGARWAL ANIL & Co.

Chartered Accountants

(CA ANIL AGRAWAL)

(M.No. 82103)

PARTNER

Firm Reg. No. 003222 N

For M.K AGGARWAL & CO.

Chartered Accountants

(CA ATUL AGGARWAL)

(M.No. 99374)

PARTNER

Firm Reg. No. 01411 N

For CHATURVEDI & CO.

Chartered Accountants

(CA SATISH CHANDRA CHATURVEDI)

(M. No.12705)

PARTNER

Firm Reg. No. 302137 E

For UBEROI SOOD & KAPOOR

Chartered Accountants

(CA SANJAY SOOD)

(M. No.80527)

PARTNER

Firm Reg. No. 001462 N

For P S D & ASSOCIATES

Chartered Accountants

(CA PRAKASH SHARMA)

(M. No. 072332)

PARTNER

Firm Reg. No. 004501 C

Delhi

06th MAY 2013

ANNEXURE IV

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

TO THE MEMBERS OF

State Bank of Bikaner and Jaipur

We have examined the compliance of conditions of corporate governance by the State Bank of Bikaner and Jaipur, for the

year ended on the 31st March, 2013 as stipulated in Clause 49 of the Listing Agreement of the State Bank of Bikaner and

Jaipur with Stock Exchanges.

The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was

limited to procedures and implementation thereof, adopted by the State Bank of Bikaner and Jaipur for ensuring the

compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the

financial statements of the State Bank of Bikaner and Jaipur.

In our opinion and to the best of our information and according to the explanation given to us, we certify that the State Bank

of Bikaner and Jaipur has complied with the conditions of Corporate Governance as stipulated in the above mentioned

Listing Agreement.

We state that no investor grievance is pending for a period exceeding one month against the State Bank of Bikaner and

Jaipur as per the records maintained by the Shareholders’/Investors Grievance Committee.

We further state that such compliance is neither an assurance as to the future viability of the State Bank of Bikaner &

Jaipur nor the efficiency or effectiveness with which the management has conducted the affairs of State Bank of Bikaner

& Jaipur.

76

% %

%

` � III

�

` `

` ` `

` `

`

V

77

ANNEXURE-V

SHAREHOLDER’S QUERIES WITH REGARD TO PROFIT & LOSS ACCOUNT AND BALANCE SHEET RAISED IN THE LAST ANNUAL

GENERAL MEETING HELD ON MAY 24, 2012 AND THEIR RESPONSES:

OBSERVATIONS REPLIES

1 NPA : Steep growth in Net NPA to Net advances which was 0.83% is increased now to 1.93% i.e. double the existing NPA. The position is very much disappointing. Kindly explain (page 155)

Position of Net Advances and Net NPA as on 31st March, 2012 vis-à-vis 2011 are as under:

Rs. in Crore 2012 2011 % increase

Net Advances : 49244.33 41206.65 19.51%

Net NPA : 945.41 341.33 176.98%

Net NPA to Net Advances:

1.92% 0.83%

The growth in Net advances for the year ended 31.03.12 was 19.51% over 31.03.2011. During the same period, the Net NPA increased by 176.98% on account of addition of some large value accounts in commercial segment (owing to global recession) and other value accounts in AGR Segment. Resultantly, the Net NPA% increased from 0.83% as on 31.03.2011 to 1.92% as on 31.03.2012

2 In the NPA details provided in the Annual Report, names of top 5 NPA should also be published.

The matter relates to client confidentiality. Disclosing the names of big NPA accounts could be detrimental to the interest of the borrower in improving their financial position.

3 The Rate of Dividend for this year decreased from 164% last year to 145% even after highest profit of `652 crores as well as Golden Jubilee year of the Bank. This is unfair with the shareholders and needs to be revised.

In view of implementation of BASEL-III, Banks are required to maintain higher CRAR to comply with the international standards. Therefore the Board of Directors decided to conserve capital keeping in view the future business prospects of the bank. The money which is transferred to reserves will improve the Return on Equity.

4 Page 177 : AS 20 : Earning Per share : Cause of less Earning per share

Less earning per share is due to increase in number of 2 crore fully paid equity shares on account of rights issue during the year.

5 Why Contingent liability increased during the year by `3398 crores. Please explain the reason

Contingent Liabilities increased due to increase in forward exchange contracts booked by the Bank on behalf of customers (`2400 crore). In the interest of customers we have to book forward exchange contract on the present rates. Increase in contingent liability due to forward exchange contracts is a good sign showing that the Bank is doing well in forex business.

6 Schedule No.9 - Unsecured Advances : Unsecured advances are on high side recording a growth of 15.50% from `5890 crore to `6972 crores this year. Are they fully provided for ?

The total provision for Bad & Doubtful debts of `431.43 crore includes provision for unsecured advances also as per RBI Guidelines.

7 Please confirm that the actuaries for pension and gratuity is done every year. How much provision has been made for actuaries during the year ended 31.3.2012. This should not include the share of amortization

Bank gets actuarial valuations done every year. Bank charged to its Profit and Loss account 179.25 crores and 36.87 crore towards pension and gratuity liability respectively (including the amortised amount of `76.89 crore) for the financial year 2011-12.

78

- VI

II

III II

II

I

79

ANNEXURE VIBASEL-II DISCLOSURES

In terms of Reserve Bank of India guidelines on New Capital Adequacy Framework (NCAF), Pillar-III Disclosures of the Bank as on 31.03.2013 are as under:

Capital Management

Capital management is aimed at ensuring that there is sufficient capital to meet the requirement of the Bank as determined by its underlying business strategy and also that sufficient cushion is available to absorb unexpected shocks that could arise out of adverse market conditions and external factors.

The Bank aims to maintain Capital Adequacy Ratio (CAR) well above the regulatory minimum level of 9%. Excess capital above the regulatory minimum is for supporting anticipated future business growth and to serve as a buffer for any unexpected shocks thereby ensuring that the Bank’s CAR does not fall below the regulatory minimum level even in adverse conditions.

Risk Management

The risk management processes and practices employed by the Bank have been developed in the wider context of the relationships between risk, capital and earnings.

The strategic objectives set by the Board determine the Bank’s risk appetite, which is an important input for its capital planning and performance management. Risk appetite is the maximum risk the Bank is willing to accept in executing its business strategy while staying protected against events that may have an adverse impact on its profitability and capital base. Risks are being managed by using limits or checkpoints set across all dimensions of capital, earnings volatility and concentration risk. These limits are determined by a well-defined maximum risk appetite.

By adopting an integrated risk management approach, the Bank seeks to improve its methods for identifying and quantifying risks, to develop a more effective risk management system, to achieve a stable balance between earnings and risk, to eliminate concentrations of specific risks, to create an appropriate capital structure, to achieve optimal allocation of resources, and to sustain high asset quality. This contributes to the strengthening of the financial health of the Bank and maximizing of shareholders’ value.

The Bank broadly classifies and defines risk types as under:

Credit Risk The risk of financial loss in credit assets (including off-balance sheet instruments) caused by deterioration in the credit conditions of counterparties.

Market Risk The risk of financial loss where the value of assets and liabilities could be adversely affected by changes in market variables such as interest rates, securities prices and foreign exchange rates.

Liquidity Risk The risk to earnings and capital arising from a bank’s potential inability to meet its liabilities when they become due without incurring unacceptable losses.

Operational Risk The risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events.

Interest Rate Risk in Banking Book The risk that the value of bank’s financial assets may decrease and/or the value of the bank’s liabilities may increase because of changes in interest rates. Interest Rate Risk arises primarily from the maturity mismatch of assets and liabilities. The overall objective is to manage current and future earnings sensitivity to interest rate risk exposure.

The Bank has the following risk management committees in place for its overall risk management: Risk Management Committee of the Board, Credit Risk Management Committee, Market Risk Management Committee and Operational Risk Management Committee. Besides these committees, the Bank’s Assets-Liabilities Management Committee (ALCO) and Balance Sheet Management Group monitor the build-up of assets and liabilities across maturities for liquidity tracking and assessing rate sensitivity on an ongoing basis.

The various risk management committees discuss and dynamically manage the different types of risks both from qualitative and quantitative perspectives. The Board of Directors lays down the Bank’s risk management policies for various types of risk based on the discussions held by these committees.

In terms of RBI guidelines on Basel-II framework, the Bank has adopted the Standardised Approach for Credit Risk, Standardised Duration Approach for Market Risk and Basic Indicator Approach for Operational Risk. In addition to regulatory capital requirement of computation as per Pillar-I, the Bank also assesses Liquidity Risk and Interest Rate Risk and carries out strests tests on a regular basis to asses adequacy of the capital available as a cushion to withstand shocks from market forces and external factors.

80

DF

II

I II

I

I

II II II

II

I II I

`

( ) I (i + ii + iii + iv – v) : 4932.57

(i) : 70.00

(ii) : 4694.13 (iii) : 200.00

(iv) : 0.00

(v) I : (31.56)

( ) II : 1648.92

(i+ii+iii-iv)

i II :

l : 450.00

l : 0.00

l : 450.00

ii II :

l : 1500.00 l : 0.00

l : 900.00

iii : 317.53

(iv) : (18.61)

( ) III : 0.00

( ) I II : 6581.49

[ ]

81

Qualitative and quantitative disclosures in terms of RBI guidelines and our Disclosure Policy are appended in the Disclosure Tables (DF) 1 to 10.

DF-1 SCOPE OF APPLICATION

Basel-II framework is applicable to the Bank at solo level. It has no subsidiary. However, investment in MGB Gramin Bank,

Pali (in which Bank has 35% equity stake) has been deducted from Tier-I and Tier-II capital -50% each.

DF-2 : CAPITAL STRUCTURE:

Qualitative Disclosures:

(a) Summary:

Type of Capital Features

Equity (Tier-I) Shares issued to

SBI (75.07%)

Public (24.93%)

Innovative Instruments

(Tier-I) Innovative Perpetual Debt Bonds: Unsecured, non-convertible, subordinated, perpetual Bonds in the nature of Promissory Notes. Call option and step-up coupon available after 10 years (subject to RBI approval at the time).

Tier-II Subordinated Debt Instruments i.e. Upper Tier-II and Lower Tier-II bonds issued by the Bank are unsecured, redeemable, non-convertible bonds. Call option available for Upper Tier-II bonds after 10 years (subject to RBI approval at the time)Period : ranges from 111 months to 180 months

Details of Tier-I and Tier-II debt issues given in Appendix I.

Quantitative Disclosures: (` in Crores)

(b) Tier-I Capital (i + ii + iii + iv – v) : 4932.57

(i) Paid-up Share Capital : 70.00

(ii) Reserves : 4694.13

(iii) Innovative Instruments : 200.00

(iv) Other Capital Instruments : 0.00

(v) Amount deducted from Tier-I Capital(i.e. Deferred Tax Asset & Investment in RRB)

: (31.56)

(c) Total Eligible Tier -2 Capital (Net of deductions)(i+ii+iii-iv)

: 1648.92

(i) Debt Capital Instruments eligible for inclusion in Upper Tier-2 Capital: :l Total amount outstanding : 450.00l Of which raised during Current year : 0.00l Amount eligible for being reckoned as Capital : 450.00

(ii) Subordinated Debt eligible for inclusion in Lower Tier-2 Capital: :l Total amount outstanding : 1500.00l Of which amount raised during current year : 0.00l Amount eligible for being reckoned as Capital : 900.00

(iii) General Provision and Loss Reserves : 317.53

(iv) Deduction from Tier- 2 Capital, if any : (18.61)

(d) Total Tier-III capital, if any : 0.00

(e) Total Eligible Capital (net of deductions from Tier I & Tier II Capital) [Total of (b), (c), (d)]

: 6581.49

82

l ICAAP

l

l I II

`

( )

l : 4418.04

( )

l : 96.41

( )

l : 353.26

: 4867.71

( ) I : 12.16%

I : 9.11%

I. Impaired

II

II.

l VI

l

l

n

n

n

l

l

l

l

l

83

DF-3 : CAPITAL ADEQUACY

Qualitative Disclosures:

Bank has a Board-approved ICAAP(Internal Capital Adequacy Assessment Process) Policy

Capital requirement for current business levels and estimated future business has been assessed as per ICAAP

CAR (Capital Adequacy Ratio) has been worked out based on Basel-I and Basel-II guidelines. CAR is estimated to be above the regulatory minimum level of 9%

Quantitative Disclosures: (` in Crores)

(a) Capital requirements for credit risk:

Portfolios subject to standardised approach : 4418.04

(b) Capital requirements for market risk:

Standardised duration approach : 96.41

(c) Capital requirements for operational risk:

Basic indicator approach : 353.26

Total Capital Requirement at regulatory minimum level of 9% : 4867.71

(d) Total and Tier I capital adequacy ratio : Total CAR : CAR (Tier-I)

::

12.16%9.11%

DF-4 : CREDIT RISK: GENERAL DISCLOSURES: (INCLUDING EQUITIES):

Qualitative Disclosures:

(a) General Qualitative Disclosures

Definitions of “Impaired Assets”: Bank is following extant RBI definitions of these categories. (The definitions used i.

are given in Appendix-II).

Credit Risk Management:ii.

Risk Governance Structure is in place (organization chart as per Appendix-VI).

Credit Risk Management Committee and Risk Management Committee of the Board are the principal

committees that review credit risk management

Following Board-approved policies with regard to credit risk are in place:

n Credit Risk Management and Loan Policy

n Credit Risk Mitigation & Collateral Management Policy

n Stress Testing Policy

Bank’s policies take into account the need for better credit risk management and avoidance of risk

concentration

Policies are reviewed periodically.

Exposure limits for Single Borrower, Group Entities, different categories of borrowers, specific industry /sector,

etc. have been stipulated.

Specific norms and guidelines for appraisal and sanction, documentation, inspection and monitoring, renewal,

maintenance, rehabilitation and management of assets have been stipulated in the Credit Risk Management

and Loan Policy, with provision of adequate leg room for innovation and deviation permissible under a proper

authority structure.

Stress test on advances is carried out at quarterly intervals and placed before the CRMC and RMCB for

review.

84

`

58473.68

8331.71

66805.39

$ 9850.75

12817.39

8174.49 30842.63

16386.95 16386.95

114034.97

$

`

( )

• 114034.97

•

( ) III

( )IV

( ) 2119.49

•

•

•

•

•

- 1-2-3

1028.21645.43184.95

46.67214.23

( ) 1303.28

( )3.62%2.27%

85

Quantitative Disclosures:

b) Total Gross Credit Exposures (Fund-Based and Non-Fund based separately), without taking into account the effect of Credit Risk Mitigation techniques, e.g. Collaterals and Netting

(` in Crores)

EXPOSURE AMOUNT TOTAL

FUND-BASED LOANS & ADVANCES 58473.68

OTHER ASSETS 8331.71

(other assets include claims on Govt./RBI, balances with banks, call lendings, inter-office balances, premises, furniture & fixtures and other sundry items)

66805.39

$ NON FUND BASED LETTERS OF CREDIT, BANK GUARANTEES (Gross) 9850.75

FOREIGN EXCHANGE FORWARD CONTRACTS. 12817.39

OTHERS 8174.49 30842.63

(others includes un-utilised limit, underwriting & standby commitments, claims against the bank not acknowledged as debts and other contingent items)

INVESTMENTS (Banking Book only)

16386.95 16386.95

GRAND TOTAL OF CREDIT RISK OUTSTANDING EXPOSURE 114034.97

$ Gross exposure without applying credit conversion factor.

(` in Crores)

(c) Geographic Distribution of Credit Risk Exposure:

• DOMESTIC 114034.97

• OVERSEAS NIL

(d) Industry-wise distribution of outstanding credit risk exposures (Fund-based and Non-Fund-Based): As per Appendix-III

(e) Residual Contractual Maturity Breakdown of Assets & Interest Rate SensitivityAs per Appendix-IV (a), (b), (c) and (d)

(f) Amount of Gross NPAs 2119.49

•

•

•

•

•

Substandard Doubtful 1Doubtful 2Doubtful 3Loss

1028.21645.43184.9546.67

214.23

(g) Net NPAs 1303.28

(h) NPA RatiosGross NPA to Gross AdvancesNet NPA to Net Advances

3.62%2.27%

86

( )

)

1651.471627.881159.862119.49

( )

705.05561.72

450.55-

816.21

( ) 0.00

( ) 0.00

( )

23.137.60

13.940.00

16.79

5( )

I

IRA

II.

III

(i)

(ii)

(iii)

87

(i) Movement of Gross NPAs

Opening balance (as on 01.04.2012)Additions Reductions Closing balance (as on 31.03.2013)

1651.471627.881159.862119.49

(j) Movement of NPA Provisions:

Opening balance (01.04.2012)Provisions made during the period

705.05561.72

Write-offs during the periodWrite-back of excess provisions during the periodClosing balance (31.03.2013)

450.55-

816.21

(k) Amount of Non-Performing Investments (gross) Banking Book 0.00

(l) Amount of Provisions held for Non- Performing Investments (Banking Book) 0.00

(m) Movement of provision for depriciation on investments (Banking Book)Opening Balance NPI Provisions(01.04.2012)Provisions held for Depreciation/Additional Provisions made during the periodWrite offsWrite-back of excess provisions Closing Balance (31.03.2013)

23.137.60

13.940.00

16.79

DF-5 CREDIT RISK: DISCLOSURES FOR PORTFOLIOS SUBJECT TO STANDARDISED APPROACH:

Qualitative Disclosures:

5(a) Qualitative Disclosures Remarks

I Names of credit rating agencies used

Domestic Credit Rating Agencies: CRISIL, ICRA, CARE, India Ratings, Brickwork Rating and SME Rating Agency of India Ltd. (SMERA)

International Rating Agencies (IRA):FITCH, Moody’s and S& P

II. Changes, if any, since prior period disclosures in the identified rating agencies and reasons for the same

Two new domestic credit rating agencies viz. Brickwork Rating and SME Rating Agency of India Ltd. (SMERA), which were recognized by RBI were added

III Types of exposures for which each agency used/ to be used

Ratings done by the identified rating agency are to be used for various types of exposures as follows:

(i) For exposures with a contractual maturity of less than or equal to one year (except Cash Credit, Overdraft and other Revolving Credits), Short-term Ratings will be applicable.

(ii) For domestic Cash Credit, Overdraft and other Revolving Credits (irrespective of the period) and for Long Term exposures of over 1 year, Long Term Ratings will be applicable.

(iii) For overseas exposures, irrespective of the contractual maturity, Long Term Ratings given by IRAs will be applicable.

88

IV

(i)

(ii)

`

l 67234.80

l 31211.95

l 10839.98

l 4748.24

(

114034.97

I

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

89

IV Description of the process used to transfer public issue ratings onto comparable assets in the banking book

Long-term issue-specific ratings (our own exposures or other issuance of debt by the same borrower-constituents/counter-party) or issuer (borrower-constituents/ counter-party) ratings can be applied to other unrated exposures of the same borrower-constituents/ counter-party in the following cases:

(i) If the issue-specific rating or issuer rating maps to a risk weight equal to or higher than the unrated exposures any other un-rated exposure on the same counter-party will be assigned the same risk weight, if the exposure ranks pari-passu or junior to the rated exposure in all respects.

(ii) In cases where the borrower-constituent/ counter-party has issued a debt (which is not a borrowing from our Bank), the rating given to that debt may be applied to Bank’s unrated exposures if the Bank’s exposure ranks pari-passu or senior to the specific rated debt in all respects and the maturity of Bank’s unrated exposures are not later than maturity of rated debt.

Quantitative Disclosures:

The exposure amount after Risk Mitigation subject to Standardised Approach i.e. amount of outstanding (rated and unrated

taken together) in different risk-buckets as well as the amount that are deducted, if any:

(` in Crore)

Below 100 % Risk Weight : 67234.80

@100% Risk Weight: 31211.95

More than 100% Risk weight: 10839.98

Amount Deducted, if any: 4748.24

(credit risk mitigation including from staff)

TOTAL 114034.97

DF-6 CREDIT RISK MITIGATION: DISCLOSURES FOR STANDARDISED APPROACH:

(a) General Qualitative Disclosures:

I Policies and Processes for Collateral Valuation and Management

A Credit Risk Mitigation and Collateral Management Policy, addressing the Bank’s approach towards the credit risk

mitigants used for capital calculation is in place. The objective of this Policy is to enable classification and valuation of

credit risk mitigants in a manner that allows regulatory capital adjustment to reflect them.

The Policy adopts the Comprehensive Approach, which allows full offset of collateral (after appropriate haircuts) against

exposures, by effectively reducing the exposure amount by the value ascribed to the collateral. The following issues are

addressed in the Policy:

(i) Classification of credit risk mitigants

(ii) Acceptable credit risk mitigants

(iii) Documentation and legal process requirements for credit risk mitigants

(iv) Valuation of collateral

(v) Custody of collateral

(vi) Insurance

(vii) Monitoring of credit risk mitigants

90

II

i) (i)

(ii) Notionally Convert

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

l

NAV

l II(i)

ii)

iii)

91

II Main types of credit risk management techniques:

S.No. Qualitative Disclosures

Remarks

i) Eligible financial collaterals

(i) Cash (as well as certificates of deposit or comparable instruments, including fixed deposit receipts, issued by the lending bank) on deposit with the Bank

(ii) Gold including both bullion and jewellery. However, the value of the collateralized jewellery is arrived at after notionally converting these to 99.99 % purity.

(iii) Securities issued by Central and State Governments.

(iv) Kisan Vikas Patra and National Savings Certificates for which no lock-in-period is operational and where they can be encashed within the holding period.

(v) Life insurance policies with a declared surrender value of an insurance company which is regulated by an insurance sector regulator.

(vi) Debt securities rated by a recognized Credit Rating Agency in respect of which the Bank is sufficiently confident about the market liquidity, where these are rated

a) at least BBB(-) when issued by public sector entities and by other entities (including banks and Primary Dealers); or

b) at least PR3/P3/F3/A3 for short-term debt instruments.

(vii) Debt securities not rated by a recognized Credit Rating Agency where these are:

a) issued by a bank; and

b) listed on a recognized exchange; and

c) classified as senior debt; and

d) all rated issues of the issuing bank of the same seniority are rated at least BBB(-) or PR3/ P3 / F3 / A3 by a chosen Credit Rating Agency; and

e) there is no information available that suggests that the issue justifies a rating below BBB(-) or PR3/ P3 / F3 / A3 (as applicable) and;

f) Bank is sufficiently confident about the market liquidity of the security.

(viii) Units of Mutual Funds regulated by the securities regulator in the jurisdiction of the Bank’s operation, where:

a price for the units is publicly quoted daily i.e., where the daily NAV is available •

in public domain; and

the mutual fund is limited to investing in the instruments listed in this paragraph, •

para II (i).

ii) On-balance sheet netting

Where the Bank

a) has a well-founded legal basis for concluding that the netting or offsetting agreement is enforceable in each relevant jurisdiction regardless of whether the counter-party is insolvent or bankrupt;

b) is able at any time to determine the loans/advances and deposits with the same counter-party that are subject to the netting agreement; and

c) monitors and controls the relevant exposures on a net basis,

iii) Guarantees Where guarantees are direct, explicit, irrevocable and unconditional and satisfy the operational requirements detailed in the RBI guidelines

92

III

(i)

(ii)

IV

V

l `

l (Leverage)

l SPV

l

l

n

n

l

l

l

93

III Main types of guarantor counter-party and their creditworthiness:

Range of eligible guarantors (counter-guarantors):

i) Sovereigns, sovereign entities (including BIS, IMF, European Central Bank and European Community as well as

MDBs referred to in RBI guidelines, ECGC and CGTSI), banks and primary dealers with a lower risk weight than the

counter-party;

(ii) Other entities rated AA(-) or better. These include guarantee cover provided by parent, subsidiary and affiliate

companies that have a lower risk weight than the obligor. The rating of the guarantor should be an entity rating

which has factored in all the liabilities and commitments (including guarantees) of the entities.

IV Information about (credit or market) risk concentration within the mitigation taken:

As per Appendix V

Quantitative Disclosures:

(b) For each separately disclosed credit risk portfolio the total exposure (after, where applicable, on-or off balance sheet

netting) that is covered by eligible financial collateral after the application of haircuts.

Eligible Financial Collateral after haircuts (excl. Staff loans): • ` 4748.24 crores

(c) For each separately disclosed portfolio the total exposure (after, where applicable, on-or off-balance sheet netting) that

is covered by guarantees/credit derivatives (whenever specifically permitted by RBI): NIL

DF-7 SECURITISATION: DISCLOSURE FOR STANDARDISED APPROACH

Qualitative Disclosures

Bank's objective in relation to Securitisation activity is to achieve improvements in leverage ratios, asset performance

& quality and to achieve desirable investment & maturity characteristics.

Loss on sale on transfer of assets to Special Purpose Vehicle (SPV) shall be recognized upfront by the Bank.

Bank shall amortize the profit on sale of the securitised assets over the life of the Pass Through Certificates (PTC)

assets issued or to be issued by SPV.

Quantitative Disclosures:

a) Banking Book: The amount of exposure securitized: NIL

b) Trading Book: The amount of exposure securitized which is subject to market risk: NIL

DF-8 MARKET RISK IN TRADING BOOK

Qualitative Disclosures:

The following portfolios are covered by the Standardised Duration approach for calculation of Market Risk:

n Securities held under the Held for Trading (HFT) and Available for Sale (AFS) categories.

n Derivatives entered into for hedging HFT & AFS securities and Derivatives entered into for Trading.

Board approved Trading Policies, Investment Policy, Market Risk Management Policy with defined market risk management parameters for various asset classes are in place.

Market Risk Management Department and Mid-Office are responsible for identification, assessment, monitoring and reporting of market risk in treasury operations.

Risk monitoring is an on-going process with the position reported to the top management, Market Risk Management Committee and Risk Management Committee of the Board at stipulated intervals.

94

l

l VaR

l

Exception Reports

`

l : 60.73

l : 34.33

l : 1.35

: 96.41

l

l

1)

2)

3)

4)

5)

l

l

l

: ` 353.26

95

No Derivatives have been entered into for AFS securities or Trading.

Risk management and reporting is based on parameters such as Modified Duration, PVO1, Exposure and Gap Limits,

VaR, etc.,

Forex Open Position limits (Daylight / Overnight), deal-wise cut-loss limits stop-loss limit, Profit / Loss in respect of cross

currency trading are properly monitored and exception reporting is regularly carried out.

Quantitative Disclosures:

Capital Requirement for Market Risk under Standardised Duration Approach (@ 9%):

(` in crore)

Interest Rate Risk : 60.73•

Equity Position Risk : 34.33•

Forex Risk : 1.35 •

TOTAL : 96.41

DF-9 OPERATIONAL RISK

Qualitative Disclosures:

Operational Risk Management Policy of the Bank is in place, which establishes a consistent framework for systematic

and proactive identification, assessment, measurement, monitoring and mitigation of operational risk. The policy

applies to all business and functional areas within the Bank. The Operational Risk Management Policy is supplemented

by operational systems, procedures and guidelines which are periodically updated. Operational Risk Management

Committee has been constituted.

Bank has put in place the following measures to control and mitigate operational risks:

Book of instructions, circulars, job cards, training programmes etc. !

Delegation of financial powers at various levels of officers for different type of financial transactions !

Inputs on operational risk are included in the relevant training programmes !

Bank obtains insurance cover for potential operational risks !

A system of prompt submission of reports on frauds is in place !

Risk Control and Self Assessment (RCSA) exercise for identifying and mitigating operational risks has been initiated at

the Bank’s branches and Zonal Offices.

A web-based application has been developed and rolled out for automatic collation of responses in different RCSA

workshops to facilitate generation of Zone-wise, Business Segment-wise and Whole-Bank-level heat-maps.

Disaster Recovery Policy and Business Continuity Planning Policy have been put into place

Quantitative Disclosures:

Capital Charge on Operational Risk : ` 353.26 crores (As per minimum regulatory capital requirement)

96

IRRBB

l

l

l

II

II

l

(i)

`

%(ii) MVE

`

`

97

DF-10 INTEREST RATE RISK IN BANKING BOOK (IRRBB)

Qualitative Disclosures:

Earning at Risk (EaR) is measured as per ALM guidelines of RBI using Traditional Gap Analysis method.

Impact of change in Interest Rates on Market Value of Equity (MVE) is measured using Duration Gap Analysis method, taking whole Balance Sheet, as per RBI guidelines.

MVE is also measured using Duration Gap Analysis method, taking only Banking Book exposures into account as per RBI guidelines on Supervisory Review Process (Pillar-II of Basel-II framework).

Key Assumptions used based on behavioral studies:

a) Saving Bank deposits: 100% of such deposits treated as interest bearing

b) Term deposits: 4% of such deposits prepaid due to embedded option

c) Current deposits: taken as rate sensitive for IRR purpose as per RBI guidelines

d) Term Loans: prepayment @ 0.08% of total term loans

Quantitative Disclosures:

(i) Change in NII:

At the present level of our assets / liabilities, NII is likely to increase / decrease by ` 167.16 crore., if there is a upward / downward movement in interest rate by 1% (assuming parallel interest rate change on both assets and liabilities except Savings Bank rate that will remain constant at 4% ).

(ii) Change in MVE:

e) Taking the whole Balance Sheet into account, Market Value of Equity (MVE) will increase / decrease by `224.67 crore if there is an upward / downward movement in interest rate by 1%.

f) Taking only Banking Book exposures into account, Market Value of Equity (MVE) will increase / decrease by 200.98 crore if there is an upward / downward movement in interest rate by 1%.

98

- I

Complex I II

` : 9.85%

‘AAA’ ‘AAA’

II II

` : 10.25%

‘AAA’

‘AAA ’

II II

` : 9.78%

‘AAA’

‘AAA ’

II

Vanilla

` : 7.20%

‘AAA’

II

Vanilla

` : 7.45%

‘AAA’

‘LAAA’

II

Vanilla

` : 9.15%

‘AAA ’

‘LAAA ’

II

vanilla

` : 9.02%

‘AAA’

‘LAAA’

99

APPENDIX – I

Summary information on the terms and conditions of the main features of all capital instruments, including innovative, complex or hybrid capital instruments eligible for inclusion in Tier-I or Tier-II capital :

Type of Capital Main features

Innovative Perpetual Debt Instruments20.03.2008

Unsecured, non-covertible, subordinated, Perpetual Bonds in the nature of Promissory Notes. Call op-tion and step-up coupon available after 10 years (subject to RBI permission at the time). Other details: Amount: ` 200 cr.Tenor : Perpetual (call option available after 10 years with permission of RBI).Coupon: 9.85% payable annually.Ratings: AAA by CARE and AAA-Stable by CRISIL.

Upper Tier-II Subordinated Bonds22.03.2007

Type of Instrument : Unsecured, redeemable, non-convertible Subordinated Upper Tier-II Bonds in the nature of Promissory Notes. Call option is available after 120 months(subject to RBI permission at the time). Other details:Amount : ` 150 crTenor : 180 months maturing on: 22.03.2022Coupon : 10.25% (fixed, payable annually)Rating : CARE ‘AAA’ and CRISIL ‘AAA/Stable’

Upper Tier-II Subordinated Bonds15.10.2007

Type of Instrument : Unsecured, redeemable, non-convertible Subordinated Upper Tier-II Bonds in the nature of Promissory Notes. Call option is available after 120 months(subject to RBI permission at the time). Other details:Amount : ` 300 crTenor : 180 months maturing on: 15.10.2022Coupon : 9.78% (fixed, payable annually)Rating : CARE ‘AAA’ and CRISIL ‘AAA/Stable’

Lower Tier-II Subordinated Bonds(Third Series)21.02.2005

Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Prom-issory Note. These are plain vanilla bonds with no special features like put or call option.Other details: Amount : ` 200 crTenure : 111 months maturing on: 21.05.2014Coupon : 7.20% (fixed, payable annually)Rating : ‘AAA’ by CRISIL

Lower Tier-II Subordinated Bonds(Fourth Series) 17.11.2005

Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special features like put or call option.Other details: Amount : ` 300 crTenure : 111 months maturing on: 17.02.2015Coupon : 7.45% (fixed, payable annually)Rating : ‘AAA’ by CRISIL and ‘LAAA’ by ICRA

Lower Tier-II Subordinated Bonds (Fifth Series)10.08.2006

Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special features like put or call option.Other details: Amount : ` 500 crTenure : 120 months maturing on: 10.08.2016Coupon : 9.15% (fixed, payable annually)Rating : AAA/Stable (CRISIL) LAAA (Stable) (ICRA)

Lower Tier-II Subordinated Bonds 20.03.2012

Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special features like put or call option.Other details: Amount : ` 500 crTenure : 120 months maturing on: 20.03.2022Coupon : 9.02% (fixed, payable annually)Rating : ‘AAA’ by CRISIL and ‘LAAA’ by ICRA

100

- II

`

101

APPENDIX - II

DEFINITIONS OF IMPAIRED ASSETS

Non-performing assets

An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.

Non-Performing Asset (NPA) is a loan or an advance where:

Interest and/ or installments of principal remain overdue for a period of more than 90 days in respect of a Term Loan,

The account remains ‘out of order’, in respect of an Overdraft/ Cash Credit (OD/ CC),

The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,

The installment of principal or interest thereon remains overdue for two crop seasons for short duration crops,

The installment of principal or interest thereon remains overdue for one crop seasons for long duration crops,

The amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006.

In respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.

In case the interest due & charged during any quarter is not serviced fully within 90 days from the end of the quarter the account is classified as NPA

'Out of order' status

An account is treated as 'out of order' if the outstanding balance remains continuously in excess of the sanctioned limit/ drawing power. In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/ drawing power, but either there are no credits continuously for 90 days in the account as on the date of balance sheet or the credits are not enough to cover the interest debited during the same period, these accounts are also treated as ‘out of order’.

Overdue

Any amount due to the bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the bank.

102

- III

(` )

1 193.85 160.30 33.55 173.89

2 999.53 942.98 56.55 51.30

3 3946.20 3620.72 325.48 1093.80

4 1019.94 1019.08 0.86 197.67

5 2091.16 2077.01 14.15 1146.45

5.1 1065.39 1062.20 3.18 383.79

6 2726.46 2726.46 0.00 496.29

7 1883.69 1864.60 19.09 126.49

8 11.29 10.14 1.15 129.89

9 1683.04 1626.15 56.89 177.14

10 65.00 64.97 0.03 2.95

11 3.77 3.76 0.01 0.00

12 1101.68 1093.48 8.2 131.19

13 409.96 408.13 1.83 469.61

14 39.66 19.58 20.08 0.51

15 419.49 388.94 30.55 185.16

16 811.16 798.02 13.14 312.42

17 2519.87 2440.62 79.25 209.51

17.1 647.34 642.44 4.9 1.09

17.2 4.73 4.73 0 0.55

17.3 264.01 213.49 50.52 44.23

18 667.13 665.59 1.54 93.13

19 59.14 53.54 5.6 25.93

20 802.95 790.92 12.03 367.53

21 78.11 77.27 0.84 10.52

22 118.71 118.68 0.03 555.18

23 586.23 584.49 1.74 89.99

24 0.00 0.00 0.00 0.00

25 4311.59 4172.56 139.03 1031.71

25.1 1900.36 1824.11 76.24 411.75

25.2 124.10 124.09 0.01 79.32

25.3 2113.99 2056.04 57.95 169.50

26 701.81 671.77 30.04 86.08

27 3369.33 3369.15 0.18 28.93

28 27852.93 26585.28 1267.65 2657.47

24718.66 24718.66 0.00 20991.88

83192.34 81072.85 2119.49 30842.63

103

APPENDIX-III

INDUSTRY-WISE DISTRIBUTION OF EXPOSURES - FUND BASED & NON-FUND BASED

(` in crores)

CODE INDUSTRY FUND BASED OUTSTANDING

STANDARD ASSETS

NON PERFORMING

ASSETS

NON-FUND BASED

OUTSTANDING

1 COAL 193.85 160.30 33.55 173.89

2 MINING 999.53 942.98 56.55 51.30

3 IRON & STEEL 3946.20 3620.72 325.48 1093.80

4 OTHER METAL & METAL PRODUCTS 1019.94 1019.08 0.86 197.67

5 ALL ENGINEERING 2091.16 2077.01 14.15 1146.45

5.1 (OF WHICH ELECTRONICS) 1065.39 1062.20 3.18 383.79

6 ELECTRICITY 2726.46 2726.46 0.00 496.29

7 COTTON TEXTILES 1883.69 1864.60 19.09 126.49

8 JUTE TEXTILES 11.29 10.14 1.15 129.89

9 OTHER TEXTILES 1683.04 1626.15 56.89 177.14

10 SUGAR 65.00 64.97 0.03 2.95

11 TEA 3.77 3.76 0.01 0.00

12 FOOD PROCESSING 1101.68 1093.48 8.2 131.19

13 VEGETABLE OILS & VANASPATI 409.96 408.13 1.83 469.61

14 TOBACCO & TOBACCO PRODUCTS 39.66 19.58 20.08 0.51

15 PAPER & PAPER PRODUCTS 419.49 388.94 30.55 185.16

16 RUBBER & RUBBER PRODUCTS 811.16 798.02 13.14 312.42

17 CHEMICALS,DYES, PAINTS ETC 2519.87 2440.62 79.25 209.51

17.1 OF WHICH FERTILISERS 647.34 642.44 4.9 1.09

17.2 OF WHICH PETRO-CHEMICALS 4.73 4.73 0 0.55

17.3 OF WHICH DRUGS & PHARMACEUTICALS 264.01 213.49 50.52 44.23

18 CEMENT 667.13 665.59 1.54 93.13

19 LEATHER & LEATHER PRODUCTS 59.14 53.54 5.6 25.93

20 GEMS & JEWELLERY 802.95 790.92 12.03 367.53

21 CONSTRUCTIONS 78.11 77.27 0.84 10.52

22 PETROLEUM 118.71 118.68 0.03 555.18

23 AUTOMOBILES INCULDING TRUCKS 586.23 584.49 1.74 89.99

24 COMPUTER SOFTWARE 0.00 0.00 0.00 0.00

25 INFRASTRUCTURE 4311.59 4172.56 139.03 1031.71

25.1 OF WHICH POWER (excl ELECTRICITY at 6) 1900.36 1824.11 76.24 411.75

25.2 OF WHICH TELECOMMUNICATIONS 124.10 124.09 0.01 79.32

25.3 OF WHICH ROAD & PORTS 2113.99 2056.04 57.95 169.50

26 OTHER INDUSTRIES 701.81 671.77 30.04 86.08

27 NBFC 3369.33 3369.15 0.18 28.93

28 OTHERS ADVANCES 27852.93 26585.28 1267.65 2657.47

29 OTHER ASSETS (INCLUDING BANKING BOOK) 24718.66 24718.66 0.00 20991.88

TOTAL CREDIT EXPOSURE 83192.34 81072.85 2119.49 30842.63

104

- IV ( )

(` )

1

2-7 8-14 1-14 15-28 29

3

>3-6 >6-12 >1-3 >3-5 > 5

1. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00

2. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14

3. 77.77 924.42 890.69 1892.88 597.35 7267.95 3305.63 3482.13 25480.89 15241.70 14657.44 71925.97

(I) 22.06 132.37 154.43 308.86 0.00 0.00 0.00 0.00 1853.17 1103.08 1147.20 4412.31

(II) 30.63 183.80 214.44 428.87 0.00 0.00 0.00 0.00 9220.67 5360.85 6433.02 21443.41

(III) 25.08 608.25 326.92 960.25 351.11 2280.25 1625.17 2263.21 14407.05 8777.77 7077.22 37742.03

(IV) 0.00 0.00 194.90 194.90 246.24 4987.70 1680.46 1218.92 0.00 0.00 0.00 8328.22

4. 2100 0 0 2100 0 0 630 0 708 500 1150 5087

(I) 2099.61 0.00 0.00 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61

(II) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(III) 0.00 0.00 0.00 0.00 0.00 0.00 630.00 0.00 207.85 0.00 0.00 837.85

(IV) I II 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 500.00 1150.00 2150.00

5. 45.57 79.90 98.24 223.71 98.51 318.53 378.62 218.28 1178.64 41.84 81.33 2539.46

(I) 9.76 58.58 68.34 136.68 91.12 0.00 0.00 0.00 911.24 0.00 0.00 1139.04

(II) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(III) 5.03 4.91 6.13 16.07 7.39 308.33 47.09 18.14 186.41 24.40 44.02 651.85

(IV) 30.78 16.41 23.77 70.96 0.00 10.20 331.53 200.14 80.99 17.44 37.31 748.57

6. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(I) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(II) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7.

0.35 2.10 2.45 4.90 4.89 19.57 19.57 146.80 0.00 0.00 0.00 195.73

8 1.73 10.36 12.08 24.17 24.17 24.17 39.60 8.75 0.00 0.00 0.00 120.86

9. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10. (DUPN) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11. 66.48 375.36 61.81 503.65 452.61 2590.68 1669.22 1110.62 11.54 0.00 0.00 6338.32

12. 0.83 9.87 9.51 20.21 6.38 77.60 35.29 37.18 272.06 162.74 156.50 767.96

13. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2292.34 1402.01 1074.78 4769.13 1183.91 10298.50 6077.93 5003.76 27650.98 15946.28 20809.41 91739.90

2292.34 3694.35 4769.13 4769.13 5953.04 16251.54 22329.47 27333.23 54984.21 70930.49 91739.90

105

APPENDIX - IV (a)

STATEMENT OF STRUCTURAL LIQUIDITY AS ON 31.03.2013

Sub-Total Residual Maturity (` in crore)

OUTFLOWS Day 12-7

Days8-14 DAYS

1-14 days15-28 DAYS

29D-3-MTHS.

>3-6 MTHS.

>6-12 MTHS.

>1-3 YEARS

>3-5 YEARS

> 5 YEARS

TOTAL

1. CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00

2. RESERVES AND SURPULS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14

3. DEPOSITS 77.77 924.42 890.69 1892.88 597.35 7267.95 3305.63 3482.13 25480.89 15241.70 14657.44 71925.97

(I) CURRENT DEPOSITS 22.06 132.37 154.43 308.86 0.00 0.00 0.00 0.00 1853.17 1103.08 1147.20 4412.31

(II) SAVINGS BANK DEPOSITS 30.63 183.80 214.44 428.87 0.00 0.00 0.00 0.00 9220.67 5360.85 6433.02 21443.41

(III) TERM DEPOSITS 25.08 608.25 326.92 960.25 351.11 2280.25 1625.17 2263.21 14407.05 8777.77 7077.22 37742.03

(IV) CERTIFICATE OF DEPOSITS 0.00 0.00 194.90 194.90 246.24 4987.70 1680.46 1218.92 0.00 0.00 0.00 8328.22

4. BORROWINGS 2100 0 0 2100 0 0 630 0 708 500 1150 5087

(I) CALL AND SHORT NOTICE 2099.61 0.00 0.00 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61

(II) INTER-BANK(TERM) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(III) REFINANCES 0.00 0.00 0.00 0.00 0.00 0.00 630.00 0.00 207.85 0.00 0.00 837.85

(IV) OTHERS (Tier I&II Bonds) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 500.00 1150.00 2150.00

5.OTHER LIABILITIES AND PROV. 45.57 79.90 98.24 223.71 98.51 318.53 378.62 218.28 1178.64 41.84 81.33 2539.46

(I) BILLS PAYABLE 9.76 58.58 68.34 136.68 91.12 0.00 0.00 0.00 911.24 0.00 0.00 1139.04

(II) INTER-OFFICE ADJUST-MENTS

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(III) PROVISIONS 5.03 4.91 6.13 16.07 7.39 308.33 47.09 18.14 186.41 24.40 44.02 651.85

(IV) OTHERS (currency Trans., Adjusting others, Asso. Bank Trans. etc.)

30.78 16.41 23.77 70.96 0.00 10.20 331.53 200.14 80.99 17.44 37.31 748.57

6. LINES OF CREDIT COMMITTED TO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(I) INSTITUTIONS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(II) CUSTOMERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7. UNAVAILED PORTION OF CASH

0.35 2.10 2.45 4.90 4.89 19.57 19.57 146.80 0.00 0.00 0.00 195.73

8 LCs/BGs 1.73 10.36 12.08 24.17 24.17 24.17 39.60 8.75 0.00 0.00 0.00 120.86

9.REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10.BILLS REDISCOUNTED(DUPN) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11. SWAPS(BUY/SELL)/ MATURING FORWARDS

66.48 375.36 61.81 503.65 452.61 2590.68 1669.22 1110.62 11.54 0.00 0.00 6338.32

12.INTEREST PAYABLE 0.83 9.87 9.51 20.21 6.38 77.60 35.29 37.18 272.06 162.74 156.50 767.96

13. OTHERS(SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

A. TOTAL OUTFLOWS 2292.34 1402.01 1074.78 4769.13 1183.91 10298.50 6077.93 5003.76 27650.98 15946.28 20809.41 91739.90

Cumulative out flows 2292.34 3694.35 4769.13 4769.13 5953.04 16251.54 22329.47 27333.23 54984.21 70930.49 91739.90

106

- IV ( )

(` )

1 2-7 8-14 1-14 15-28 29

3

>3-6 >6-12 >1-3 >3-5 > 5

1. 353.00 0.00 0.00 353.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00

2. 2883.64 37.56 36.19 2957.39 24.27 295.30 134.31 141.48 1035.30 619.28 595.53 5802.86

3. 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85

(i) 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85

(ii) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4. 17.37 58.00 24.28 99.65 98.94 1709.99 824.42 151.56 4194.05 5250.27 7833.80 20162.68

5. 892.37 871.43 1087.10 2850.90 1311.88 1867.57 2144.89 3218.03 33067.04 4328.71 6591.37 55380.39

(i)

445.78 116.02 174.89 736.69 139.63 392.68 129.88 1.30 0.00 1.19 0.05 1401.42

(ii) 36.33 217.96 254.29 508.58 254.29 0.00 0.00 0.00 24665.72 0.00 0.00 25428.59

(iii) 410.26 537.45 657.92 1605.63 917.96 1474.89 2015.01 3216.73 8401.32 4327.52 6591.32 28550.38

(iv) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 825.39 477.89 1303.28

7. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32

8. 321.52 343.19 55.73 720.44 1.37 162.90 0.00 36.76 38.30 2.01 28.62 990.40

(i)

0.00 275.13 0.00 275.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13

(ii) 321.52 68.06 55.73 445.31 1.37 162.90 0.00 36.76 38.30 2.01 28.62 715.27

9. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10. 0.01 438.13 0.50 438.64 354.37 3629.74 1772.87 1145.70 0.00 0.00 0.00 7341.32

11. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

12. 0.00 0.00 0.00 0.00 0.00 334.32 432.35 0.00 0.00 0.00 0.00 766.67

13. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

14. (Devolvable

LCs/BGs) 0.00 0.00 0.00 0.00 24.17 24.17 24.17 39.60 8.75 0.00 0.00 120.86

15. 2013.52 0.00 0.00 2013.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2013.52

6512.28 1748.31 1203.80 9464.39 1815.00 8023.99 5333.01 4733.13 38343.44 11025.66 15758.53 94497.15

4219.94 346.30 129.02 4695.26 631.09 -2274.51 -744.92 -270.63 10692.46 -4920.62 -5050.88

4219.94 4566.24 4695.26 4695.26 5326.35 3051.84 2306.92 2036.29 12728.75 7808.13 2757.25

%184% 25% 12% 98% 53% -22% -12% -5% 39% -31% -24%

%184% 124% 98% 98% 89% 19% 10% 7% 23% 11% 3%

@ @ @ @ @ -50% -50% -60% -60% -60% -60%

-5%* -10%* -15%* -15%* -20%* -30% -30% -30% -30% -30% -30%

107

APPENDIX - IV (b)

STATEMENT OF STRUCTURAL LIQUIDITY

Sub-Total Residual Maturity (` in crore)

INFLOWS Day 1 2-7 Days8-14 DAYS

1-14 days

15-28 DAYS

29D-3-MTHS.

>3-6 MTHS.

>6-12 MTHS.

>1-3 YEARS

>3-5 YEARS

> 5 YEARS

TOTAL

1 CASH 353.00 0.00 0.00 353.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00

2. BALANCES WITH RBI 2883.64 37.56 36.19 2957.39 24.27 295.30 134.31 141.48 1035.30 619.28 595.53 5802.86

3. BALANCES WITH OTHER BANKS

30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85

(i) CURRENT ACCOUNT 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85

(ii) MONEY AT CALL AND SHORT/TERM/PLACE-MENT

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4. INVESTMENTS (INCLUDING REPOS)

17.37 58.00 24.28 99.65 98.94 1709.99 824.42 151.56 4194.05 5250.27 7833.80 20162.68

5. ADVANCES (PERFORMING) 892.37 871.43 1087.10 2850.90 1311.88 1867.57 2144.89 3218.03 33067.04 4328.71 6591.37 55380.39

(i) BILLS PURCHASED AND DISCTD

445.78 116.02 174.89 736.69 139.63 392.68 129.88 1.30 0.00 1.19 0.05 1401.42

(ii) CASH CREDITS, OVERDRAFTS,DEMAND LOAN

36.33 217.96 254.29 508.58 254.29 0.00 0.00 0.00 24665.72 0.00 0.00 25428.59

(iii) TERM LOANS 410.26 537.45 657.92 1605.63 917.96 1474.89 2015.01 3216.73 8401.32 4327.52 6591.32 28550.38

(iv) Rceivable under Agr Debt Relief

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6. NPAs (ADVANCES) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 825.39 477.89 1303.28

7. FIXED ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32

8. OTHER ASSETS 321.52 343.19 55.73 720.44 1.37 162.90 0.00 36.76 38.30 2.01 28.62 990.40

(i) INTER OFFICE ADJ.(IBIT,clearing a/c, ATM)

0.00 275.13 0.00 275.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13

(ii) OTHERS (Suspence A/c, Br. Sys. Susp. etc)

321.52 68.06 55.73 445.31 1.37 162.90 0.00 36.76 38.30 2.01 28.62 715.27

9. REVERSE REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10. SWAPS (SELL/BUY)/ 0.01 438.13 0.50 438.64 354.37 3629.74 1772.87 1145.70 0.00 0.00 0.00 7341.32

11. BILLS REDISCOUNTED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

12. INTEREST RECEIVABLE 0.00 0.00 0.00 0.00 0.00 334.32 432.35 0.00 0.00 0.00 0.00 766.67

13. COMMITTED LINES OF CREDIT

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

14 (A) OTHERS (Devolvable LCs/BGs)

0.00 0.00 0.00 0.00 24.17 24.17 24.17 39.60 8.75 0.00 0.00 120.86

15. Export Refinance Limit 2013.52 0.00 0.00 2013.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2013.52

B. TOTAL INFLOWS 6512.28 1748.31 1203.80 9464.39 1815.00 8023.99 5333.01 4733.13 38343.44 11025.66 15758.53 94497.15

C. MISMATCH (B-A) 4219.94 346.30 129.02 4695.26 631.09 -2274.51 -744.92 -270.63 10692.46 -4920.62 -5050.88

D. CUMULATIVE MISMATCH 4219.94 4566.24 4695.26 4695.26 5326.35 3051.84 2306.92 2036.29 12728.75 7808.13 2757.25

E. C AS % TO A 184% 25% 12% 98% 53% -22% -12% -5% 39% -31% -24%

F. D AS % TO CUMULATIVE OUTFLOWS

184% 124% 98% 98% 89% 19% 10% 7% 23% 11% 3%

Prudential Level for mismatch @ @ @ @ @ -50% -50% -60% -60% -60% -60%

Prudential Level for cumulative mismatch

-5%* -10%* -15%* -15%* -20%* -30% -30% -30% -30% -30% -30%

@ RBI has prescribed cumulative mismatch limits as -5%, -10%, -15% and -20% for Day-1, 2-7 days, 8-14 days and 15 - 28 days respectively against the earlier indivisual limit of (-) 20% each for 1 to 14 days and 15 to 28 days buckets.* Figures in italics indicate limits prescribed by RBI.

108

- IV ( )

`

1-28 29 - 3 >3-6 >6-12 >1-3 >3-5 > 5

1. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00

2. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14

3. 3442.15 9142.76 27362.02 10541.97 10473.74 4270.67 2280.35 4412.31 71925.97

(I) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4412.31 4412.31

(II) 0.00 0.00 21443.41 0.00 0.00 0.00 0.00 0.00 21443.41

(III) 3001.01 4155.06 4238.15 9323.05 10473.74 4270.67 2280.35 0.00 37742.03

(IV) 441.14 4987.70 1680.46 1218.92 0.00 0.00 0.00 0.00 8328.22

4. 2099.61 0.00 630.00 0.00 207.85 0.00 0.00 2150.00 5087.46

(I) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(II) 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61

(III) 0.00 0.00 630.00 0.00 207.85 0.00 0.00 0.00 837.85

(IV) I II0.00 0.00 0.00 0.00 0.00 0.00 0.00 2150.00 2150.00

5. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2539.46 2539.46

(I) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1139.04 1139.04

(II) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(III) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 651.85 651.85

(IV) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 748.57 748.57

6. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7. DUPN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8. 956.26 2590.68 1669.22 1110.62 11.54 0.00 0.00 0.00 6338.32

26.59 77.60 35.29 37.18 272.06 162.74 156.50 0.00 767.96

9. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6524.61 11811.04 29696.53 11689.77 10965.19 4433.41 2436.85 13865.91 91423.31

109

APPENDIX - IV (c)

STATEMENT OF INTEREST RATE SENSITIVITY

Residual Maturity (` in crore)

LIABILITIES 1-28 Days 29D-3MTHS>3-6 MTHS

>6-12 MTHS

>1-3 YEARS

>3-5 YEARS

> 5 YEARS N-SENSITIVE TOTAL

1. CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00

2. RESERVES AND SURPULS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14

3. DEPOSITS 3442.15 9142.76 27362.02 10541.97 10473.74 4270.67 2280.35 4412.31 71925.97

(I) CURRENT DEPOSITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4412.31 4412.31

(II) SAVINGS BANK DEPOSITS 0.00 0.00 21443.41 0.00 0.00 0.00 0.00 0.00 21443.41

(III) TERM DEPOSITS 3001.01 4155.06 4238.15 9323.05 10473.74 4270.67 2280.35 0.00 37742.03

(IV) CERTIFICATE OF DEPOSITS 441.14 4987.70 1680.46 1218.92 0.00 0.00 0.00 0.00 8328.22

4. BORROWINGS 2099.61 0.00 630.00 0.00 207.85 0.00 0.00 2150.00 5087.46

(I) CALL AND SHORT NOTICE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(II) INTER-BANK(TERM) 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61

(III) REFINANCES 0.00 0.00 630.00 0.00 207.85 0.00 0.00 0.00 837.85

(IV) OTHERS (Tier I&II Bonds) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2150.00 2150.00

5. OTHER LIABILITIES AND PROV. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2539.46 2539.46

(I) BILLS PAYABLE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1139.04 1139.04

(II) INTER-OFFICE ADJUSTMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(III) PROVISIONS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 651.85 651.85

(IV) OTHERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 748.57 748.57

6. REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7. BILLS REDISCOUNTED(DUPN) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8. SWAPS(BUY/SELL)/ 956.26 2590.68 1669.22 1110.62 11.54 0.00 0.00 0.00 6338.32

INTEREST PAYABLE 26.59 77.60 35.29 37.18 272.06 162.74 156.50 0.00 767.96

9. OTHERS(SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

A. TOTAL LIABILITIES 6524.61 11811.04 29696.53 11689.77 10965.19 4433.41 2436.85 13865.91 91423.31

110

- IV ( )

`

1-28 29 -

3

>3-6 >6-12 >1-3 >3-5 > 5

1. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00 353.00

2. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5802.86 5802.86

3. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85

3.1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85

3.2

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4. 98.94 1709.99 824.42 151.56 4231.61 5245.42 7681.86 218.88 20162.68

4. 0.00 0.00 0.00 0.00 3578.84 5185.44 7551.61 71.06 16386.95

5. 3421.16 1868.27 45083.85 389.84 1013.62 537.18 979.59 1891.15 55184.66

(i) 876.32 392.68 129.88 1.30 0.00 1.19 0.05 0.00 1401.42

(ii) 21.25 0.70 23078.87 6.48 15.76 21.99 196.66 1891.15 25232.86

(iii) 2523.59 1474.89 21875.10 382.06 997.86 514.00 782.88 0.00 28550.38

(iv) Receivable under Agr Debt

Relief 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6. 0.00 0.00 0.00 0.00 0.00 825.39 477.89 0.00 1303.28

7. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32

8. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 990.40 990.4

(i) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13 275.13

(ii) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 715.27 715.27

9. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10. 793.01 3629.74 1772.87 1145.70 0.00 0.00 0.00 0.00 7341.32

11. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

12. 0.00 334.32 432.35 0.00 0.00 0.00 0.00 0.00 766.67

13. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

14. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4313.11 7542.32 48113.49 1687.10 5245.23 6607.99 9139.34 9518.46 92167.04

-2211.50 -4268.72 18416.96 -10002.67 -5719.96 2174.58 6702.49 -4347.45

-2211.50 -6480.22 11936.74 1934.07 -3785.89 -1611.31 5091.18 743.73

% -51% -57% 38% -593% -109% 33% 73% -46%

% -51% -55% 20% 3% -6% -2% 6% 1%

% -2.68% -5.16% 22.28% -12.10% -6.92% 2.63% 8.11% -5.26%

35% 35% 35% 30% 30% 30% 30%

111

RESIDUAL MATURITY (` in crore)

ASSETS 1-28 DAYS29D-3-MTHS

>3-6 MTHS

>6-12 MTHS

>1-3 YEARS

>3-5 YEARS

> 5 YEARS N-SENSITIVE TOTAL

1. CASH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00 353.00

2. BALANCES WITH RBI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5802.86 5802.86

3. BALANCES WITH OTHER BANKS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85

3.1 CURRENT ACCOUNT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85

3.2 MONEY AT CALL AND SHORT NOTICE, TERM DEPOSITS

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

NOTICE, TERM DEPOSITS AND OTHER PLACEMENTS

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4. INVESTMENTS (INCLUDING REPOS BUT EXCLUDING REV. REPOS

98.94 1709.99 824.42 151.56 4231.61 5245.42 7681.86 218.88 20162.68

4. A OUT of WHICH HELD TO MATURITY 0.00 0.00 0.00 0.00 3578.84 5185.44 7551.61 71.06 16386.95

5. ADVANCES (PERFORMING) 3421.16 1868.27 45083.85 389.84 1013.62 537.18 979.59 1891.15 55184.66

(i) BILLS PURCHASED & DISCOUNTED 876.32 392.68 129.88 1.30 0.00 1.19 0.05 0.00 1401.42

(ii) CASH CREDITS,OVERDRAFTS & DEMAND LOANS

21.25 0.70 23078.87 6.48 15.76 21.99 196.66 1891.15 25232.86

(iii) TERM LOANS 2523.59 1474.89 21875.10 382.06 997.86 514.00 782.88 0.00 28550.38

(iv) Receivable under Agr Debt Relief 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6. NPAs (ADVANCES ) 0.00 0.00 0.00 0.00 0.00 825.39 477.89 0.00 1303.28

7. FIXED ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32

8. OTHER ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 990.40 990.4

(i) INTER OFFICE ADJUSTMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13 275.13

(ii) OTHERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 715.27 715.27

9. REVERSE REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10. SWAPS (SELL/BUY) MATURING FORWARDS

793.01 3629.74 1772.87 1145.70 0.00 0.00 0.00 0.00 7341.32

11. BILLS REDISCOUNTED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

12. INTEREST RECEIVABLE 0.00 334.32 432.35 0.00 0.00 0.00 0.00 0.00 766.67

13. COMMITTED LINES OF CREDIT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

14. OTHERS (SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

B. TOTAL ASSETS 4313.11 7542.32 48113.49 1687.10 5245.23 6607.99 9139.34 9518.46 92167.04

C. GAP(B-A) -2211.50 -4268.72 18416.96 -10002.67 -5719.96 2174.58 6702.49 -4347.45

D. CUMULATIVE GAP -2211.50 -6480.22 11936.74 1934.07 -3785.89 -1611.31 5091.18 743.73

E. C AS % TO B -51% -57% 38% -593% -109% 33% 73% -46%

F. D AS % TO B -51% -55% 20% 3% -6% -2% 6% 1%

G.C AS % TO TOATL RT.SENS.ASSETS -2.68% -5.16% 22.28% -12.10% -6.92% 2.63% 8.11% -5.26%

Prudential Level for Gap(Not exceed to) 35% 35% 35% 30% 30% 30% 30%

APPENDIX - IV (d)

STATEMENT OF INTEREST RATE SENSITIVITY

112

- V

Mitigants

`

1579.32 33.26

7.36 0.16

4.42 0.09

234.33 4.94

0 0.00

2393.96 50.42

0 0.00

239.51 5.04

Mutual 0 0.00

289.34 6.09

4748.24 100.00

-VI

(tksf[ke izkk cU/u] lk[k uhfr ,oaii dk;Zoa fof/);Z;Z

,oa eqo [; tkseqe f[ke vf/dkjhkk

113

APPENDIX - V

Risk Concentrations within the total risk mitigants

Financial Risk Mitigants Outstanding amount of Risk Mitigants (after haircut)(For Fund Based & Non Fund Based Exposures) ` in crores

Risk Concentration %

Cash & Bank Deposit 1579.32 33.26

Gold 7.36 0.16

LIC 4.42 0.09

NSCs, KVP, IVP 234.33 4.94

Shares and Debentures 0 0.00

Margin Money against LC / BG 2393.96 50.42

Guarrantors & Counter Parties 0 0.00

Government Securities Excluding NSC 239.51 5.04

Mutual Funds 0 0.00

Others (Bonds) 289.34 6.09

TOTAL 4748.24 100.00

APPENDIX-VI

ORGANISATIONAL CHART OF INTERGRATED RISK MANAGEMENT DEPARTMENT

(Risk Mgmt. Credit Policy & Procedures) & CRO

114

115

BALANCE SHEET AND

PROFIT & LOSS ACCOUNT

CITY PALACE , UDAIPUR (RAJASTHAN)

116

117

AUDITORS’ REPORT

The State Bank of India

Report On The Financial Statements

We, the undersigned Auditors of State Bank of Bikaner & Jaipur, appointed under section 41(1) of the State Bank of India

(Subsidiary Banks) Act, 1959, do hereby report on the Balance Sheet as at 31st March, 2013, the Profit and loss account

and the Cash flow Statement for the year ended on that date.

1. We have audited the accompanying financial statements of State Bank of Bikaner & Jaipur as at 31st March,

2013, which comprise the Balance Sheet as at March 31, 2013, and Profit and Loss Account and the cash flow

statement for the year ended, and a summary of significant accounting policies and other explanatory information.

Incorporated in these financial statements are the returns of 20 branches audited by us and 511 branches and 56

processing centres audited by branch auditors. The branches audited by us and those audited by other auditors

have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of

India. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 506

branches and 18 other offices which have not been subjected to audit. These unaudited branches account for

9.59 per cent of advances, 20.71 per cent of deposits, 6.37 per cent of interest income and 19.12 per cent of

interest expenses.

Management’s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements in accordance with The Banking

Regulation Act, 1949. This responsibility includes the design, implementation and maintenance of internal control

relevant to the preparation of the financial statements that are free from material misstatement, whether due to

fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our

audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those

Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of

material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates

made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

6. Without qualifying our opinion, we refer to:-

a) Note No. 3(b) on classification of restructured advances.

b) Note no. 3(c) on classification of agricultural advances in respect of unaudited branches.

c) Note no. 5 regarding provision of Pension and Gratuity.

118

i

ii

iii

( -11617)

( 082103) ( 099374)

( 012705) ( 080527) ( 072332)

119

For S. DAGA & CO.

Chartered Accountants

(CA SHANTI LAL DAGA)

(M.No. F-11617)

PARTNER

For AGARWAL ANIL & CO.

Chartered Accountants

(CA ANIL AGRAWAL)

(M. No. 082103)

PARTNER

Firm Reg. No. 003222 N

For M.K. AGGARWAL & CO.

Chartered Accountants

(CA ATUL AGGARWAL)

(M. No. 099374)

PARTNER

Firm Reg. No. 001411 N

For CHATURVEDI & CO.

Chartered Accountants

(CA SATISH CHANDRA CHATURVEDI)

(M. No.12705)

PARTNER

Firm Reg. No. 302137 E

For UBEROI SOOD & KAPOOR

Chartered Accountants

(CA SANJAY SOOD)

(M. No.80527)

PARTNER

Firm Reg. No. 001462 N

For P S D & ASSOCIATES

Chartered Accountants

(CA PRAKASH SHARMA)

(M. No. 072332)

PARTNER

Firm Reg. No. 004501 C

Delhi May 06, 2013

7. In our opinion, as shown by books of bank, and to the best of our information and according to the explanations given

to us:

(i) the Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary

particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st

March 2013 in conformity with accounting principles generally accepted in India;

(ii) the Profit and Loss Account, read with the notes thereon shows a true balance of profit in conformity with

accounting principles generally accepted in India, for the year covered by the account; and

(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms “A” and “B” respectively of the

Third Schedule to the Banking Regulation Act, 1949.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the Banking Companies

(Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required

therein, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief, were

necessary for the purposes of our audit and have found them to be satisfactory.

(b) The transactions of the Bank, which have come to our notice have been within the powers of the Bank.

(c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of

our audit.

10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable

accounting standards.

120

BALANCE SHEET OF STATE BANK OF BIKANER AND JAIPUR AS ON 31ST MARCH, 2013

(‘000 ) (‘000 omitted)

Schedule

As on 31.03.2013

` As on 31.03.2012

`

CAPITAL AND LIABILITIES

Capital 1 70,00,00 70,00,00

Reserves and Surplus 2 46,94,13,50 40,94,87,89

Deposits 3 7,21,16,22,17 6,15,72,09,16

Borrowings 4 58,42,02,88 29,54,97,50

Other liabilities and provisions 5 32,94,43,97 38,36,18,78

/ TOTAL : 8,60,16,82,52 7,25,28,13,33

ASSETS

Cash and balances with Reserve Bank of India 6 61,55,86,00 43,37,11,52

Balances with banks and moneyat call and short notice 7 1,80,73,18 1,17,21,58

Investments 8 2,01,45,88,14 1,66,69,47,51

Advances 9 5,75,34,96,62 4,92,44,32,71

Fixed Assets 10 2,31,32,13 2,02,07,98

Other Assets 11 17,68,06,45 19,57,92,03

/ TOTAL : 8,60,16,82,52 7,25,28,13,33

121

Schedule

As on 31.03.2013

`

As on 31.03.2012

`

Contingent liabilities12 2,06,05,07,68 1,27,20,85,95

Bills for Collection

15,06,09 40,86,37

Principal Accounting Policies17

Notes on accounts18

BALANCE SHEET OF STATE BANK OF BIKANER AND JAIPUR AS ON 31ST MARCH, 2013

/ Contd.

(‘000 )(‘000 omitted)

B. SRIRAMManaging Director

PRATIP CHAUDHURIChairman

RAJEEV N. MEHRA PRADEEP KUMAR SANYAL MIHIR KUMAR

SANJAY KUMAR SINGHChief General Manager

(Retail Banking)

SANTANU MUKHERJEE Chief General Manager (Commercial Banking)

MS. MALVIKA SINHA RAJESH T. MANUBARWALA BHARAT RATTAN

KISHOR BABU C. P.Dy. General Manager (Finance & Accounts)

NARAYANA SWAMY R.General Manager

(Treasury, F&A) & CFO

ARUN K. SARAF SUNIL DUTT BALI D.K. JAIN

Delhi May 06, 2013

( -11617) ( 082103) ( 099374) ( 12705) ( 80527) ( 072332)

For S. DAGA & CO.

Chartered Accountants(CA SHANTI LAL DAGA)

(M.No. F-11617)

PARTNER

For AGARWAL ANIL & CO.Chartered Accountants

(CA ANIL AGRAWAL)

(M. No. 082103)

PARTNER

Firm Reg. No. 003222 N

For M.K. AGGARWAL & CO.Chartered Accountants

(CA ATUL AGGARWAL)

(M. No. 099374)

PARTNER

Firm Reg. No. 001411 N

For CHATURVEDI & CO.

Chartered Accountants(CA SATISH CHANDRA

CHATURVEDI)

(M. No.12705)PARTNER

Firm Reg. No. 302137 E

For UBEROI SOOD &

KAPOOR

Chartered Accountants(CA SANJAY SOOD)

(M. No.80527)PARTNER

Firm Reg. No. 001462 N

For P S D & ASSOCIATES

Chartered Accountants(CA PRAKASH SHARMA)

(M. No. 072332)PARTNER

Firm Reg. No. 004501 C

As per our separate report of even date

DIRECTORS

122

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2013

(‘000 ) (‘000 omitted)

Schedule

Year ended 31.03.2013

`

Year ended 31.03.2012

`

I.

INCOME

Interest earned 13 74,98,18,56 62,91,35,75

Other income 14 7,26,28,91 5,98,97,18

/ TOTAL : 82,24,47,47 68,90,32,93

II.EXPENDITURE

Interest expended 15 49,32,37,45 40,69,96,13

Operating expenses 16 15,79,22,64 13,30,75,35

Provisions and contingencies 9,82,63,49 8,37,58,27

/ TOTAL : 74,94,23,58 62,38,29,75

III.PROFIT

Net Profit for the year 7,30,23,89 6,52,03,18

Profit brought forward 1 5

/ TOTAL 7,30,23,90 6,52,03,23

IV.APPROPRIATIONS

Transfer to Statutory Reserves 2,19,07,20 1,95,60,95

Transfer to Capital Reserves 17,66,56 7,80,07

Transfer from Investment Reserves -2,29,31 -11,11,78

(i) (viii)

Special Reserve U/S 36(i)(viii) of IT Act 50,30,00 44,17,00

Transfer to Revenue and Other Reserves 3,14,51,15 2,97,60,40

Interim Dividend Paid for the FY 2012-13 1,12,70,00 1,01,50,00

123

Schedule

Year ended 31.03.2013

`

Year ended 31.03.2012

`

Dividend Tax 18,28,28 16,46,58

Balance of Profit & Loss Account 2 1

/ TOTAL 7,30,23,90 6,52,03,23

`

Basic Earnings per Share (in `) 104.32 95.05

`

Diluted Earnings per Share (in `) 104.32 95.05

Principal Accounting Policies 17

Notes on Accounts 18

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2013

/ Contd.

(‘000 ) (‘000 omitted)

B. SRIRAMManaging Director

PRATIP CHAUDHURIChairman

RAJEEV N. MEHRA PRADEEP KUMAR SANYAL MIHIR KUMAR

SANJAY KUMAR SINGHChief General Manager

(Retail Banking)

SANTANU MUKHERJEE Chief General Manager (Commercial Banking)

MS. MALVIKA SINHA RAJESH T. MANUBARWALA BHARAT RATTAN

KISHOR BABU C. P.Dy. General Manager (Finance & Accounts)

NARAYANA SWAMY R.General Manager

(Treasury, F&A) & CFO

ARUN K. SARAF SUNIL DUTT BALI D.K. JAIN

Delhi May 06, 2013

( -11617) ( 082103) ( 099374) ( 12705) ( 80527) ( 072332)

For S. DAGA & CO.

Chartered Accountants(CA SHANTI LAL DAGA)

(M.No. F-11617)

PARTNER

For AGARWAL ANIL & CO.

Chartered Accountants

(CA ANIL AGRAWAL)

(M. No. 082103)

PARTNER

Firm Reg. No. 003222 N

For M.K. AGGARWAL & CO.

Chartered Accountants

(CA ATUL AGGARWAL)

(M. No. 099374)

PARTNER

Firm Reg. No. 001411 N

For CHATURVEDI & CO.

Chartered Accountants(CA SATISH CHANDRA

CHATURVEDI)

(M. No.12705)PARTNER

Firm Reg. No. 302137 E

For UBEROI SOOD &

KAPOOR

Chartered Accountants(CA SANJAY SOOD)

(M. No.80527)PARTNER

Firm Reg. No. 001462 N

For P S D & ASSOCIATES

Chartered Accountants(CA PRAKASH SHARMA)

(M. No. 072332)PARTNER

Firm Reg. No. 004501 C

As per our separate report of even date

DIRECTORS

124

SCHEDULE 1 CAPITAL

(‘000 ) (‘000 omitted)

As on 31.03.2013

`

As on 31.03.2012

`

` /-

Authorised Capital(50,00,00,000 equity shares of `10/- each)

5,00,00,00 5,00,00,00

` /-

Issued Capital(7,00,00,000 equity shares of `10/- each)

70,00,00 70,00,00

` /-

Subscribed, Called-up & Paid-up Capital(7,00,00,000 equity shares of `10/- each)

70,00,00 70,00,00

/ TOTAL : 70,00,00 70,00,00

125

SCHEDULE 2 RESERVES & SURPLUS

(‘000 ) (‘000 omitted)

As on 31.03.2013 As on 31.03.2012

I. / Statutory Reserves ` `

Opening Balance12,73,38,85 10,77,77,90

Additions during the year 2,19,07,20 1,95,60,95

Deductions during the year 0 0 / TOTAL : 14,92,46,05 12,73,38,85

II. / Capital Reserves

Opening Balance41,40,58 33,60,51

Additions during the year17,66,56 7,80,07

Deductions during the year0 0

/ TOTAL : 59,07,14 41,40,58III. / Share Premium

Opening Balance8,66,64,49 1,06,64,49

Additions during the year0 7,60,00,00

Deductions during the year0 0

/ TOTAL : 8,66,64,49 8,66,64,49IV. / Investment Reserves

Opening Balance2,29,31 13,41,09

Additions during the year0 0

Deductions during the year 2,29,31 11,11,78

/ TOTAL : 0 2,29,31V. / Revenue & Other Reserves

Opening Balance18,66,97,65 15,69,37,25

Additions during the year3,14,51,15 2,97,60,40

Deductions during the year 0 0

/ TOTAL : 21,81,48,80 18,66,97,65VI. (i) (viii)

Special Reserve U/S 36 (i)(viii) of IT Act

Opening Balance44,17,00 0

Additions during the year 50,30,00 44,17,00

Deduction during the year 0 0

/ TOTAL : 94,47,00 44,17,00

VII.

Balance In Profit & Loss Account2 1

(I, II, III, IV, V, VI VII) / TOTAL (I, II, III. IV, V, VI and VII) 46,94,13,50 40,94,87,89

126

SCHEDULE 3 DEPOSITS

SCHEDULE 4 BORROWINGS

(‘000 ) (‘000 omitted)

(‘000 ) (‘000 omitted)

As on 31.03.2013

`

As on 31.03.2012

`

A.

I.

Demand Deposits

i) / From banks 2,87,90,50 2,79,76,19

ii) / From others 41,42,13,13 35,99,25,49

II.

Savings Bank Deposits

2,14,43,40,71 1,91,15,13,89

III.

Term Deposits

i) / From Banks 6,13,78,10 37,05,93

ii) / From Others 4,56,28,99,73 3,85,40,87,66

(I, II III) TOTAL (I, II and III) 7,21,16,22,17 6,15,72,09,16

B. i) Deposits of branches in India

7,21,16,22,17 6,15,72,09,16

ii)Deposits of branches outside India

0 0

/ TOTAL : 7,21,16,22,17 6,15,72,09,16

As on 31.03.2013

`

As on 31.03.2012

`

I.

Borrowings in India

i)Reserve Bank of India

0 0

ii)Other Banks

20,99,61,31 45,78,75

iii)Other Institutions and Agencies

8,86,71,07 2,25,00,00

Total Borrowing in India 29,86,32,38 2,70,78,75

II.

Borrowings outside India7,05,70,50 5,34,18,75

127

As on 31.03.2013

`

As on 31.03.2012

`

I.

Bills Payable

11,39,04,01 14,08,01,05

II.

Share Application Money

0 0

III.

Inter-office adjustments (net)

0 0

IV.

Interest accrued

7,71,77,98 6,77,59,38

V.

Deffered Tax Liability (Net)

0 6,40,98

VI

Others (including provisions)

13,83,61,98 17,44,17,37

/ TOTAL : 32,94,43,97 38,36,18,78

As on 31.03.2013

`

As on 31.03.2012`

I.

Cash in hand

3,52,99,64 3,51,41,97

(including foreign currency notes)II.

Balance with Reserve Bank of India

i) In Current Accounts 58,02,86,36 39,85,69,55

ii) in Other Accounts 0 0

I II / TOTAL : (I & II) 61,55,86,00 43,37,11,52

SCHEDULE 5 OTHER LIABILITIES AND PROVISIONS

SCHEDULE 6 CASH AND BALANCES WITH RESERVE BANK OF INDIA

(‘000 ) (‘000 omitted)

(‘000 ) (‘000 omitted)

III. I I

Perpetual Tier-I (IPDI) Bonds Series-I

2,00,00,00 2,00,00,00

IV.

Subordinated Debts

A. i) IISubordinate Debts/Bonds Forming Tier-II Capital

15,00,00,00 15,00,00,00

ii) II Hybrid Debts/Bonds Forming Tier-II Capital

4,50,00,00 4,50,00,00

I IV / TOTAL : (I to IV) 58,42,02,88 29,54,97,50

Secured borrowings included in above

29,37,46,73 2,25,00,00

128

SCHEDULE 7 BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE

(‘000 ) (‘000 omitted)

As on 31.03.2013

`

As on 31.03.2012

`

I.

In India

i) Balance with banks

a) In Current Accounts

30,84,59 19,26,46

b) In Other Deposit Accounts

0 0

ii)

Money at call and short notice

a)With banks

0 0

b)With other institutions

0 0

i ii / TOTAL : (i & ii) 30,84,59 19,26,46

II.

Outside India

i)In Current Accounts

1,49,88,59 97,95,12

ii)In Other Deposit Accounts

0 0

iii)Money at call and short notice

0 0

i, ii iii / TOTAL : (i, ii & iii) 1,49,88,59 97,95,12

I II / TOTAL : (I & II) 1,80,73,18 1,17,21,58

129

SCHEDULE 8 INVESTMENTS

(‘000 ) (‘000 omitted)

As on 31.03.2013

`

As on 31.03.2012

`

I.

Investments in India in

i) / Government securities 1,76,73,37,65 1,61,70,94,73

ii) / Other approved securities 4,93,37 13,73,30

iii) / Shares 1,60,16,55 1,43,38,13

iv) / Debentures and Bonds 59,80,35 93,45,17

v) / /

Subsidiaries and/or joint ventures/Regional Rural Banks

37,22,58 13,77,58

vi) / Others

/ Security Receipts 2,82,26 3,79,61

/Commercial Paper 48,70,28 22,32,80

Contributory shares of UTI

0 0

Deposit with NABARD under RIDF Scheme

11,01,92 18,81,17

/ Certificate of Deposit 21,21,37,72 18,16,16

/ Mutual Funds 26,45,46 1,71,08,86

i vi / TOTAL (i to vi): 2,01,45,88,14 1,66,69,47,51

II.

Investments outside India in

i)Government securities (including local authorities)

0 0

ii)Subsidiaries and/or joint ventures abroad

0 0

iii)Other investments

0 0

i iii / TOTAL (i to iii) : 0 0

I II / TOTAL : (I & II) 2,01,45,88,14 1,66,69,47,51

130

SCHEDULE 9 ADVANCES

(‘000 ) (‘000 omitted)

As on 31.03.2013

`

As on 31.03.2012

`

A.i)

Bills purchased and discounted

16,88,26,80 18,60,15,59

ii)

Cash Credits, overdrafts and loans repayable on demand

2,66,12,15,01 2,08,38,40,31

iii)

Term loans

2,92,34,54,81 2,65,45,76,81

/ TOTAL : 5,75,34,96,62 4,92,44,32,71

B.i)

Secured by tangible assets(includes advances against Book Debts)

4,81,54,57,07 4,04,20,10,80

ii)

Covered by Bank/Government Guarantees

35,35,74,91 18,52,60,25

iii) Unsecured

58,44,64,64 69,71,61,66

/ TOTAL : 5,75,34,96,62 4,92,44,32,71

C.

I.

Advances in India

i)

Priority Sector

2,03,12,99,97 1,74,08,45,43

ii)

Public Sector

33,53,08,63 44,14,60,42

iii)

Banks

2,39,99,88 14,22

iv)

Others

3,36,28,88,14 2,74,21,12,64

/ TOTAL : 5,75,34,96,62 4,92,44,32,71

II.

Advances outside India

i)

Due from Banks

0 0

ii)

Due from others

a) Bills purchased and discounted

0 0

b) Syndicated loans

0 0

c) Others

0 0

/ TOTAL :0 0

I II / TOTAL : (C.I & C.II) 5,75,34,96,62 4,92,44,32,71

131

SCHEDULE 10 Fixed Assets

(‘000 ) (‘000 omitted)

As on 31.03.2013

`

As on 31.03.2012

`

I.

Premises

At cost as on 31st March of the preceding year 70,84,63 70,84,63

Additions during the year 0 0

Deductions during the year 26,49 0

Depreciation to date 35,69,35 34,09,58

/ TOTAL : 34,88,79 36,75,05II.

Other Fixed Assets

(including furniture and fixtures)

At cost as on 31st March of the preceding year 6,70,12,84 6,23,70,63

Additions during the year 1,08,04,73 69,07,29

Deductions during the year 21,25,34 22,65,09

/ Depreciation to date 5,60,60,90 5,05,05,64

`

`

(Net of adjustments on account of sale/write-off `516.78 lacs; Previous year ` 1215.31 lacs)

/ TOTAL : 1,96,31,33 1,65,07,19III. *

*Leased Assets

At cost as on 31st March of the preceding year 45,20,02 45,20,02

Additions during the year 0 0

Deductions during the year 0 0

/ Depreciation to date 40,49,57 40,49,57

/ Lease Adjustment -4,70,45 -4,70,45

*

*(Represents fully amortised assets where entire lease consideration has been received)

/ TOTAL : 0 0IV.

Capital Work in Progress 12,01 25,74

I, II, III IV / TOTAL : (I, II, III & IV) 2,31,32,13 2,02,07,98

132

SCHEDULE 11 OTHER ASSETS

(‘000 ) (‘000 omitted)

As on 31.03.2013

`

As on 31.03.2012

`

I.Inter-office adjustments (net) 2,75,13,29 1,90,39,47

II.Interest accrued 7,66,67,70 6,63,05,00

III.

Tax paid in advance/Tax deducted at source(net of provisions) 46,32,01 2,22,78,76

IV.Deferred Tax Assets (Net) 12,95,20 0

V.Stationery and Stamps 4,99,70 4,96,41

VI.Non-banking assets acquired in satisfaction of claims 6,58 4,53

VII.Others 6,61,91,97 8,76,67,86

/ TOTAL : 17,68,06,45 19,57,92,03

133

SCHEDULE 12 CONTINGENT LIABILITIES

SCHEDULE 13 INTEREST EARNED

(‘000 ) (‘000 omitted)

(‘000 ) (‘000 omitted)

As on 31.03.2013

`

As on 31.03.2012

`

I.Claims against the bank not acknowledged as debts

39,86,97 43,93,69

II.Liability for partly paid investments

3,01,63 7,58,02

III.Liability on account of outstanding forward exchange contracts

1,28,17,39,28 68,07,18,15

IV. @Guarantees given on behalf of constituents @

a) In India 32,16,67,00 24,03,44,31

b) Outside India 0 0

V. #Acceptances, endorsements and other obligations #

38,94,54,07 30,00,44,56

VI.Other items for which the bank is contingently liable

6,33,58,73 4,58,27,22

/ TOTAL : 2,06,05,07,68 1,27,20,85,95

@ ` `

Net after deducting cash margin of ` crores. (Previous year ` crores)

# ` ` 584.33

Net after deducting cash margin of ` crores. (Previous year ` 584.33 crores)

Year ended31.03.2013

`

Year ended31.03.2012

`

I.Interest/discount on advances/bills

59,87,72,67 50,77,91,28

II.Income on investments

14,56,71,26 11,65,53,93

III.Interest on balances with Reserve Bank of India and other inter-bank funds

22,10,83 18,90,61

IV. / Others 31,63,80 28,99,93

/ TOTAL : 74,98,18,56 62,91,35,75

134

SCHEDULE 14 OTHER INCOME

(‘000 ) (‘000 omitted)

Year ended31.03.2013

`

Year ended31.03.2012

`

I.

Commission, exchange and brokerage

5,57,91,97 5,51,22,91

II.

Profit on sale of investments (net)

75,55,49 28,58,58

III.

Profit on revaluation of investments

0 0

IV.

Profit/Loss on sale/write off of land, building and other assets

0 5

V.

Profit on exchange transactions (net)

55,20,10 3,58,15

VI.

Income earned by way of dividends etc. from subsidiaries/companies and/or joint ventures abroad/in India

0 0

VII.

Lease Rental

0 0

Lease Equalisation

0 0

VIII.

Miscellaneous Income

37,61,35 15,57,49

/ TOTAL : 7,26,28,91 5,98,97,18

SCHEDULE 15 INTEREST EXPENDED

(‘000 ) (‘000 omitted)

Year ended31.03.2013

`

Year ended31.03.2012

`

I.Interest on Deposits

46,43,74,33 38,38,72,42

II.Interest on Reserve Bank of India/Inter-bank borrowings

93,75,60 79,90,45

III.Others

1,94,87,52 1,51,33,26

/ TOTAL : 49,32,37,45 40,69,96,13

135

SCHEDULE 16 OPERATING EXPENSES

(‘000 ) (‘000 omitted)

Year ended31.03.2013

`

Year ended31.03.2012

`

I.Payments to and provisions for employees

9,87,53,21 8,19,81,83

II.Rent, taxes and lighting

1,20,84,35 1,08,92,63

III.Printing and stationery

19,92,66 19,20,82

IV.Advertisement and publicity

12,71,24 9,07,87

V.Depreciation on Bank's property

57,15,03 53,82,39

VI.Depreciation on Leased Assets

0 0

VII.Directors' fee, allowances and expenses

58,91 38,25

VIII.Auditors' fee and expenses (including branch auditors)

11,08,20 12,91,65

IX.Law charges

2,79,35 3,13,40

X.Postage, Telegrams, Telephones

24,50,51 21,43,93

XI.Repairs and maintenance

17,11,56 13,79,82

XII.Insurance

57,25,24 47,87,60

XIII.Other expenditure

2,67,72,38 2,20,35,16

/ TOTAL : 15,79,22,64 13,30,75,35

136

i)

ii)

iii)

iv)

v)

vi)

vii)

viii)

ix)

137

SIGNIFICANT ACCOUNTING POLICIES

A BASIS OF PREPARATION:

The financial statements have been prepared and presented under the historical cost convention and accrual basis of accounting, unless otherwise stated and are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’), statutory requirements prescribed under the Banking Regulation Act 1949, circulars and guidelines issued by the Reserve Bank of India (‘RBI’) from time to time, Accounting Standards (‘AS’) issued by the Institute of Chartered Accountants of India and current practices prevailing within the banking industry in India.

B USE OF ESTIMATES:

The preparation of financial statements require the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision to the accounting estimates is recognized prospectively in the current and future periods.

1. REVENUE RECOGNITION

1.1 Income & Expenditure are recognised on accrual basis except the following income, which are recognised on cash basis:

i) Interest and other income on Non Performing Assets as per IRAC norms prescribed by RBI

ii) Interest on Non-performing Investments

iii) Commission on L.Cs. and Guarantees (excluding Deferred Payment Guarantees)

iv) Insurance claims

v) Dividend on shares and units of Mutual Funds

vi) Interest on overdue demand bills purchased

vii) Locker Rent

viii) Interest on Tax refund

ix) Commission from Cross Selling Activities

1.2 Profit or loss on sale of investments is recognised in the Profit and Loss Account, however, the profit on sale of investments in the ‘Held to Maturity’ category is appropriated net of applicable taxes and amount required to be transferred to statutory reserve to ‘Capital Reserve Account’.

1.3 Income (other than interest) on investments in "Held to Maturity" (HTM) category acquired at a discount to the face value, is recognised as follows :

a) On Interest bearing securities, it is recognized only at the time of sale/redemption.

b) On zero-coupon securities, it is accounted for over the balance tenor of the security on a constant yield basis.

2. TRANSACTIONS INVOLVING FOREIGN EXCHANGE

The Bank has followed the Accounting Standard-11 (Revised 2003) issued by the Institute of Chartered Accountants of India regarding foreign exchange transactions and accordingly:-

2.1 Foreign Currency transactions are recorded on initial recognition in the reporting currency by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency on the date of transaction.

SCHEDULE 17

138

i

ii

iii

iv

I.II

139

2.2 Foreign currency monetary items are reported using the Foreign Exchange Dealers Association of India (FEDAI) closing spot rate and resultant gain / loss is recognised to Profit and Loss Account.

2.3 Exchange differences arising on the settlement of monetary items at the rates different from those at which they were recorded, are recognized as income or as expense in the period in which they arise.

2.4 Guarantees, Letters of Credit and Forward Exchange Contracts issued in foreign currencies are translated at FEDAI rates on the Balance Sheet date.

3. INVESTMENTS

3.1 The Transactions in Government Securities are recorded on 'Trade Date' upto 31.12.2010 and on 'Settlement date' with effect from 01.01.2011. Investment other than Government Securities are recorded on 'Trade Date'.

3.2 Investments have been classified into "Held to Maturity", "Available for Sale" and "Held for Trading" in terms of RBI guidelines. Securities acquired by the Bank with an intention to hold till maturity is classified under "Held to Maturity".

3.3 The securities acquired by the Bank with an intention to trade by taking advantage of short-term price/ interest rate movements are classified under "Held for Trading".

3.4 The securities, which do not fall within the above two categories, are classified under "Available for Sale".

3.5 Transfer of securities from one category to another is carried out at the lower of acquisition cost/ book value/ market value on the date of transfer. The depreciation, if any, on such transfer is fully provided for.

3.6 In determining acquisition cost of an investment:-

a Brokerage / commission received on subscription is deducted from the cost of securities.

b. Brokerage, commission etc. paid in connection with acquisition of securities are treated as revenue expenses.

c. Interest accrued up to the date of acquisition of securities i.e. broken-period interest is excluded from the acquisition cost and the same is accounted in interest accrued but not due account.

3.7 Investments are valued as per RBI/ FIMMDA guidelines, on the following basis:

'Held to Maturity'

i) Investments under "Held to Maturity" category are carried at acquisition cost. Wherever the book value is higher than the face value/redemption value, the premium is amortized over the remaining period to maturity.

ii) Investments in subsidiaries/joint ventures/associates are valued at carrying cost less diminution, other than temporary, in nature.

iii) Investments in sponsored regional rural banks are valued at carrying cost.

iv) Investment in venture capital is valued at carrying cost.

'Available for Sale' and 'Held for Trading' :-

a) Govt. Securities

I. Central Govt. Securities

At market prices/YTM as published by Fixed Income Money Market and Derivatives Association of India (FIMMDA)

II. State Govt. Securities On appropriate yield to maturity basis as per FIMMDA/RBI guidelines.

b) Securities guaranteed by Central / State Government, PSU Bonds (not in the nature of advances)

On appropriate yield to maturity basis as per FIMMDA/RBI guidelines

c) Treasury Bills At carrying cost

140

7

i)

141

d) Equity shares At market price, if quoted, otherwise at breakup value of the Shares as per the latest

Balance Sheet (not more than one year old),

otherwise at Re.1 per company

e) Preference shares At market price, if quoted or on appropriate yield to maturity basis not exceeding redemption value as per RBI/FIMMDA guidelines.

f) Bonds and debentures (not in the nature of advances)

At market price, if quoted, or on appropriate yield to maturity basis as per RBI/ FIMMDA guidelines.

g) Units of mutual funds As per stock exchange quotation, if quoted; at repurchase price/NAV, if unquoted

h) Commercial paper At carrying cost

i) Certificate of Deposits At carrying cost.

j) Security receipts of ARCIL At net asset value of the asset as declared by ARCIL

k) Venture Capital Funds At net asset value (NAV) declared by the VCF

l) Other Investments At carrying cost less diminution in value

The above valuation in category of Available for Sale and Held for Trading are done scrip wise and depreciation / appreciation is aggregated for each classification. Net depreciation for each classification if any is provided for while net appreciation is ignored.

3.8 Investments are subject to appropriate provisioning/ de- recognition of income, in line with the prudential norms of Reserve Bank of India for NPI classification. The depreciation/provision in respect of non-performing securities is not set off against the appreciation in respect of the other performing securities.

3.9 Accounting for Repo/ reverse repo transactions (other than transactions under the Liquidity Adjustment Facility (LAF) with the RBI)

The securities sold and purchased under Repo/ Reverse repo are accounted as Collateralized lending and borrowing transactions. However securities are transferred as in case of normal outright sale/ purchase transactions and such movement of securities is reflected using the Repo/Reverse Repo Accounts and Contra entries. The above entries are reversed on the date of maturity. Costs and revenues are accounted as interest expenditure/income, as the case may be. Balance in Repo A/c is classified under schedule 4 (Borrowings) and balance in Reverse Repo A/c is classified under schedule 7 (Balance with Banks and Money at Call & Short Notice).

Securities purchased / sold under LAF with RBI are debited / credited to Investment Account and reversed on maturity of the transaction. Interest expended / earned thereon is accounted for as expenditure / revenue.

4. ADVANCES

4.1 Assets Classification and provisioning in respect of Non-Performing Advances is made as per Income Recognition, Asset Classification & Provisioning (IRAC) norms issued by the Reserve Bank of India.

4.2 Advances are net of specific loan loss provisions, floating provision, ECGC claims received, bills rediscounted, provision for diminution in fair value and interest sacrifice.

4.3 In addition to the specific provision on NPAs, general provisions are also made for standard assets. These provisions are reflected in Schedule 5 of the balance sheet under the head “Other Liabilities & Provisions – Others” and are not considered for arriving at Net NPAs.

4.4 Legal expenses incurred in respect of suit filed accounts are treated as revenue expenditure and on recovery the same are credited to revenue expenditure.

4.5 The sale of NPA is accounted as per guidelines prescribed by RBI :-

i) In case the sale is at a price lower than the Net Book value (NBV), the deficit is charged to Profit & Loss Account.

142

ii)

iii)

7.1

7.2

7.3

8.1

8.2

8.3

8.4

143

ii) In case the sale is at price higher than the NBV, the surplus is kept separately for meeting the shortfall/losses,

if any, on future sale of other NPAs.

iii) In case of sale of written off accounts, the amount realized is credited to Profit & Loss account.

4.6 In case of restructuring /rescheduling of advances, erosion in the fair value of advances is provided on the basis of

present values computed in the manner prescribed by the RBI.

5. FLOATING PROVISION

In accordance with the Reserve Bank of India guidelines, the bank has an approved policy for creation and utilization

of floating provisions separately for advances, investments and general purpose. The quantum of floating provisions

to be created would be assessed at the end of each financial year. The floating provisions would be utilized only for

contingencies under extra ordinary circumstances specified in the policy with prior permission of Reserve Bank of

India.

6. PROVISION FOR COUNTRY EXPOUSURE

In addition to the specific provisions held according to the asset classification status, provisions are held for

individual country exposures (other than the home country). Countries are categorised into seven risk categories,

namely, insignificant, low, moderate, high, very high, restricted and off-credit, and provisioning made as per extant

RBI guidelines. If the country exposure (net) of the bank in respect of each country does not exceed 1% of the total

funded assets, no provision is maintained on such country exposures. The provision is reflected in schedule 5 of the

balance sheet under the “Other liabilities & Provisions – Others”.

7. LEASED ASSETS

7.1 Lease income is recognised based on the internal rate of return method over the primary period of the leased assets

and accounted for in accordance with guideline/Accounting Standard issued by the Institute of Chartered Accountants

of India (ICAI).

7.2 Depreciation is provided on Straight Line Method at rates prescribed under Schedule-XIV of the Companies Act 1956.

Extra lease depreciation, in accordance with the applicable guidelines, is adjusted against the cost of Lease assets

through lease equalization account.

7.3 Provision for Non-Performing leased assets is made on the basis of IRAC norms applicable to advances, as per RBI

guidelines.

8. DERIVATIVES

8.1 Derivative contracts, such as foreign currency options, interest rate swaps, currency swaps, cross currency interest

rate swaps and forward rate agreements are entered, in order to hedge on-balance sheet/off-balance sheet assets

and liabilities or for trading purposes. The swap contracts entered to hedge on-balance sheet assets and liabilities are

structured in such a way that they bear an opposite and offsetting impact with the underlying on-balance sheet items.

The impact of such derivative instruments is correlated with the movement of the underlying assets and accounted in

accordance with the principles of hedge accounting.

8.2 All derivative instruments are recognized as assets or liabilities in the balance sheet and measured at marked to

market.

8.3 Derivative contracts classified as hedge are recorded on accrual basis. Hedge contracts are not marked to market

unless the underlying Assets / Liabilities are also marked to market.

8.4 Except as mentioned above, all other derivative contracts are marked to market as per the generally accepted

practices prevalent in the industry. In respect of derivative contracts that are marked to market, changes in the market

value are recognized in the profit and loss account in the period of change.

144

8.5

i %

ii %

iii

iv

i)

%

145

8.5 Option premium paid or received is recorded in profit and loss account at the expiry of the option. The Balance in the premium received on options sold and premium paid on options bought have been considered to arrive at Marked to Market value for forex Over the Counter options.

9. FIXED ASSETS

9.1 Fixed Assets are carried at cost less accumulated depreciation.

9.2 Premises include freehold as well as leasehold properties.

9.3 Cost includes cost of purchase and all expenditure such as site preparation, installation costs and professional fees incurred on the asset before it is put to use. Subsequent expenditure incurred on assets put to use is capitalised only when it increases the future benefits from such assets or their functioning capability.

9.4 Depreciation on Fixed Assets is provided as under:-

i On Computers & ATM Straight Line Method @ 33.33% every year

ii On Computer Software notforming integral part of hardware

@ 100%, in the year of acquisition.

iii Leasehold land and Building Amortised as per the life of the lease.

iv On rest of the assets including Software forming integral part of hardware

On diminishing balance method at the rates and in the manner prescribed under Income Tax Rules 1962

9.5 Depreciation on premises is provided on composite cost, wherever the value of land and building is not separately identifiable.

9.6 No depreciation is provided on assets sold/disposed off during the year.

9.7 Capital Work in Progress also includes advance payment for purchase of assets.

10. IMPAIRMENT OF ASSETS

As per Accounting Standard – 28, Fixed Assets are reviewed for impairment whenever events or changes in circumstances warrant that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net discounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

11. EMPLOYEE BENEFITS

11.1 Short Term Employee Benefit:

The undisclosed amount of short term employee benefits, such as medical benefits, casual leave etc. which are expected to be paid in exchange for the services rendered by the employees are recognized during the period when the employee renders the service.

11.2 Post Employment Benefits:

i) Defined Benefit Plan

The Bank operates a Provident Fund scheme for its all eligible employees. The Bank contributes monthly its contribution for the employees who have not opted for pension, at a determined rate (currently 10% of employee’s basic pay plus eligible allowance). These contributions are remitted to an approved trust established for this purpose and are charged to Profit & Loss Account.

The Bank operates gratuity and pension schemes, which are defined benefits plans.

The Bank provides for gratuity to all eligible employees. The gratuity, an amount equivalent of 15 days eligible salary payable for each completed year of service, is paid subject to a maximum amount of 10,00,000/- as per Gratuity Act,

146

`

ii)

SBBJEDCPS)

NSDL CRAPRAN `

`

iii)

147

1972 unless the same is higher in terms of the State Bank of Bikaner & Jaipur (Payment of Gratuity to Employees )

Regulation, 1970. The Bank makes annual contributions to a fund administered by trustees based on an independent

external actuarial valuation carried out annually.

The Bank provides for pension to all eligible employees as per the State Bank of Bikaner & Jaipur (Employees')

Pension Regulation, 1995. The benefit is in form of monthly pension to eligible employees. The Bank makes annual

contributions to funds administered by trustees based on an independent external actuarial valuation carried out

annually.

The cost of providing defined benefits is determined using the projected unit credit method (recommended method

under AS-15), with actuarial valuations being carried out at each balance sheet date.

Gains/ losses are recognized in the statement of profit and loss and are not deferred.

ii) Defined Contribution Plans

The Bank operates a new pension scheme (NPS) for all officers / employees joining the Bank on or after 1st April,

2010, which is a defined contribution plan, such new joinees not being entitled to become members of the existing

SBBJ Pension Scheme. During the year, The Bank has approved a Defined Contribution Pension Scheme namely

SBBJ Employees' Defined Contribution Pension Scheme (SBBJEDCPS) which has been implemented in the Bank.

As per the scheme, employees covered under the scheme contribute 10% of their basic pay plus dearness allowance

to the scheme together with a matching contribution from the Bank. Consequently, during the year around 1800

employees out of the 2350 employees, joined on or after 01.04.2010, have been allotted Permanent Retirement

Account Number (PRAN) by the National Depository Security Ltd. (NSDL), Central Recordkeeping Agency (CRA)

under the scheme and their contribution amounting to Rs. 8.78 crore have been remitted to the Trustee Bank, Bank

of India, Mumbai for crediting to the employees' accounts (PRAN). Efforts are being made to get PRAN allotted to the

remaining 550 employees and remit their contribution together with interest amounting to Rs. 3.44 crore. The Bank

recognizes such annual contribution and interest as expenses in the year to which they relate.

iii) Other Long Term Employee benefits:

All eligible employees of the bank are eligible for compensated absences; leave travel concession, retirement award

and resettlement allowance. The costs of such long term employee benefits are internally funded by the bank.

The cost of providing other long term benefits is determined using the projected unit credit method with actuarial

valuations being carried out at each balance sheet date. Past service cost is recognized in the statement of profit and

loss and is not deferred.

12. EARNINGS PER SHARE

12.1 The Bank reports basic and diluted earnings per share in accordance with AS 20 ‘Earnings per Share ‘issued by the

ICAI. Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of

equity shares outstanding for the year.

12.2 Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity

shares were exercised or converted during the year.

12.3 Diluted earnings per share are computed using the weighted average number of equity shares and diluted potential

equity shares outstanding at year end.

13. TAXES ON INCOME

13.1 Income Tax expense is the aggregate amount of current tax, deferred tax and wealth tax. Current year taxes are

determined in accordance with the prevailing tax rates and tax laws. Deferred tax adjustments comprise changes in

the deferred tax assets or liabilities during the year.

148

i viii

i)

ii

iii)

i)

ii)

iii)

iv)

v)

149

13.2 Deferred tax assets and liabilities are recognised on a prudent basis for the future tax consequences of timing differences arising between the carrying values of assets and liabilities and their respective tax basis and carry forward losses. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted prior to the balance sheet date. The impact of changes in the deferred tax assets and liabilities is recognised in the profit and loss account.

13.3 Deferred tax assets are recognized and reassessed at each reporting date, in accordance with AS -22 and based upon management's judgment as to whether realisation is considered certain. Deferred tax assets are recognized only if there is virtual certainty that such deferred tax assets can be realised against future taxable income.

13.4 Special Reserve Account has been created under section 36 (i) (viii) of the Income Tax, 1961 from the Financial Year 2011-12, to avail the deduction. Bank has decided that it has no intention to make withdrawal from such Special Reserve created and maintained. Further such special reserve is in the nature of non-reversible and thus becomes a permanent difference and accordingly no deferred tax liability is created.

14. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

14.1 In conformity with AS 29, “Provisions, Contingent Liabilities and Contingent Assets”, issued by the Institute of Chartered Accountants of India, the Bank recognizes provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

14.2 No provision is recognized for:

i) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or

ii) Any present obligation that arises from past events but is not recognized because

a) It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

b) A reliable estimate of the amount of obligation cannot be made.

Such obligations are recorded as Contingent Liabilities. These are assessed at regular intervals and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.

iii) Contingent Assets are not recognized in the financial statements as this may result in the recognition of income that may never be realized.

15. CASH & CASH EQUIVALENTS

Cash and cash equivalents include cash on hand and in ATM’s, and gold in hand, balances with RBI, balances with other banks, and money at call and short notice.

16. NET PROFIT AND CONTINGENCY FUND

a) Net Profit is arrived at after accounting for the following "Provisions and Contingencies".

i) Depreciation on Investments

ii) Provision for Income Tax and Wealth Tax

iii) Provision for Loan Losses

iv) Provision for Standard Assets and

v) Other usual and necessary provisions and transfer to contingencies.

b) Contingency funds are grouped in Schedule-5 of the Balance sheet under the head "other Liabilities and Provision".

150

` `

` `

` `

` `

` `

` % ` `

` `

`

`

`

`

234.45 140.67 46.89 93.78

150.00 90.00 30.00 60.00

384.45 230.67 76.89 153.78

6.

( )

II II

I 6% 9%

151

SCHEDULE 18

NOTES FORMING PART OF THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT

Investments amounting to 1. ` 5400.00 crores (previous year ` 4940.00 crores) are kept as margin with the Reserve Bank of India/Clearing Corporation of India Limited towards Real Time Gross Settlement (RTGS)/REPO/CBLO transactions.

(a) In respect of premises having gross value of 2. ` 0.42 crore (Previous year: ` 0.42 crore) pending completion of certain legal formalities/ procedural actions, title deeds are yet to be executed/ registered in favour of the Bank

(b) Fixed Assets : Gross Value of fixed assets ( other than premises) includes `. 71.58 crores (previous year `. 70.64 crores ) representing 10% of Bank's share jointly owned by State Bank of India and other Associate Bank's amounts to `. 715.81 Crores (previous year `. 706.47 crores)

(a) In terms of the RBI guidelines on provision for the sacrifice amount on restructured / rescheduled advances, 3. erosion in fair value of advances has been provided amounting to ` 127.03 crores (previous year ` 36.13 crores).

(b) In case of restructured loans as standard asset, classification of advances and consequent income recognition have been done based on major compliances of terms and conditions of restructured package.

(c) The classification of advances in respect of unaudited branches having substantial agriculture loans has been done as per certificate of the branch manager. In the opinion of the management there is no material impact on the accounts.

4. The Board of Directors have declared a interim dividend of 161% i.e. `. 16.10 per share ( face value of share `. 10/- per share) during the FY 2012-13.

5. Unamortised Pension and Gratuity Liabilities

During the FY 2010-11, the Bank has incurred a liability amounting ` 384.45 Crores on account of reopening of pension option ` 234.45 Crores and enhancement of Gratuity Ceiling `. 150.00 crores. The Bank has amortised the said liability over a period of five years commencing from FY 2010-11 in terms of RBI circular no. DBOD.BP.BC.80/21.04.018/2010-11 dated 9th February 2011. Accordingly, ` 76.89 Crores (Representing one fifth of ` 384.45 Crores) has been charged to Profit & Loss Account during the current FY 2012-13. The detailed break-up is as under:-

(`. in crores)

Particulars Original Liability Balance Brought Forward

Amortized during the year

Balance Carried Forward

Pension 234.45 140.67 46.89 93.78

Gratuity 150.00 90.00 30.00 60.00

Total 384.45 230.67 76.89 153.78

DISCLOSURES REQUIRED AS PER RBI GUIDELINES

6. Capital

a) Capital adequacy

The Bank’s Capital to Risk-weighted Asset Ratio (‘Capital Adequacy Ratio’) is calculated in accordance with the RBI’s ‘Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of the New Capital Adequacy Framework’ (‘Basel II’). Under the Basel II framework, the Bank is required to maintain a minimum capital adequacy ratio of 9% on an

152

II I

80%

I II

(` )

I II

I 4932.57 4355.70 4932.57 4355.70

II 1648.92 1785.44 1648.92 1785.44

6581.49 6141.14 6581.49 6141.14

55737.84 47936.02 54085.69 44613.25

5016.41 4314.24 4867.71 4015.19

I 8.85% 9.09% 9.11% 9.76%

II 2.96% 3.72% 3.05% 4.00%

11.81% 12.81% 12.16% 13.76%

I II

I II

II

20% % I %

I % II %

II

I

I % II % II

II

( ) ( ` )

i.

75.07% 75.07%

ii. 200.00 200.00

iii. II 900.00 1100.00

iv. II 450.00 450.00

153

ongoing basis for credit risk, market risk and operational risk, with a minimum Tier I capital ratio of 6%. The Prudential Floor is higher of “minimum capital is required to be maintained as per BASEL - II framework or as a percentage (prescribed as 80% for the financial year ending 31st March 2013) of minimum capital requirement computed as per BASEL - I framework” for credit and market risks.

The Bank’s capital adequacy ratio, calculated in accordance with the RBI guidelines under both Basel I and Basel II frameworks, is as follows :

(` in crores)

ParticularsAs per Basel I framework As per Basel II framework

March 31, 2013 March 31, 2012 March 31, 2013 March 31,2012

Tier I capital 4932.57 4355.70 4932.57 4355.70

Tier II capital 1648.92 1785.44 1648.92 1785.44

Total capital 6581.49 6141.14 6581.49 6141.14

Risk weighted assets 55737.84 47936.02 54085.69 44613.25

Minimum capital required 5016.41 4314.24 4867.71 4015.19

Capital adequacy ratios

Tier I 8.85% 9.09% 9.11% 9.76%

Tier II 2.96% 3.72% 3.05% 4.00%

Total 11.81% 12.81% 12.16% 13.76%

The Bank’s capital funds as on March 31, 2013 are higher than the minimum required under the Basel I and Basel II framework.

The difference between risk weighted assets under the Basel I and Basel II framework is a net impact of the following key changes :

Under the Basel II framework, risk weights are applicable to claims on corporates corresponding to their external rating or in the absence of it ranging from 20% to 150%, compared to a uniform 100% under Basel I.

Exposures qualifying for inclusion in the regulatory retail portfolio under Basel II framework attracts a risk weight of 75%, against 100% under Basel I.

The Basel II framework recognises risk mitigation techniques in the form of eligible financial collaterals such as cash margins, deposits, bonds, gold, debt mutual funds, etc., whilst under Basel I only cash margins and deposits are considered as eligible financial collateral.

Restructured assets attract a risk weight of 125% under the Basel II framework compared to 100% under Basel I. Operational risk is subject to a capital charge under the Basel II framework.

Under the Basel II framework, capital is subjected to a charge for valuation adjustment for illiquid position of derivative and non derivative portfolio.

(b) Share holding (` in crore)

Particulars Current Year Previous Year

i. (A) Percentage of the shareholding of the Government of India Nil Nil

(B) Percentage of the shareholding of State Bank of India 75.07% 75.07%

ii. Amount of IPDI 200.00 200.00

iii. Amount of subordinated debt as Lower Tier-II capital 900.00 1100.00

iv. Amount of Upper Tier - II Instruments 450.00 450.00

154

7. ( ` )

(1)

i. 20162.67 16692.61

20162.67 16692.61

ii. 16.79 23.13

16.79 23.13

iii. 20145.88 16669.48

20145.88 16669.48

(2)

i. 23.13 21.29

ii. 7.60 23.51

iii. 13.94 21.67

iv. 16.79 23.13

8. ( ` )

(1) - - -

(2) - - -

(1) - - -

(2) - - -

i) ( ` )

(1) (2) (3) (4) (5) (6) (7)

i 25.06 0.00 0.00 11.02 0.00

ii 70.84 0.00 0.00 0.00 4.91

iii 2141.38 34.83 0.00 0.00 0.00

iv 168.84 36.92 0.00 0.00 0.00

v 37.23 37.23 0.00 0.00 37.23

vi 29.87 36.92 0.00 0.00 60.02

2473.22 145.90 0.00 11.02 102.18

vii 5.64 x x x x

2467.58 x x x x

155

7. Investments (` in crore)

Particulars Current Year Previous Year

(1) Value of Investments

i. Gross Value of Investments 20162.67 16692.61

a) In India 20162.67 16692.61

b) Outside India NIL NIL

ii. Provisions for Depreciation 16.79 23.13

a) In India 16.79 23.13

b) Outside India NIL NIL

iii. Net Value of Investments 20145.88 16669.48

a) In India 20145.88 16669.48

b) Outside India NIL NIL

(2) Movement of provisions held towards depreciation on investments.

i. Opening Balance 23.13 21.29

ii. Add: Provisions made during the year 7.60 23.51

iii. Less: Write-off/write-back of excess provisions during the year 13.94 21.67

iv. Closing balance 16.79 23.13

8. Repo Transactions ( In face value terms) (` in crore)

Minimum outstanding during

the year

Maximum outstanding during

the year

Daily Average outstanding during

the year

As on March 31, 2013

Securities sold under repos

(1) Government Securities - - - NIL

(2) Corporate Debt Securities - - - NIL

Securities purchased under reverse repos

(1) Government Securities - - - NIL

(2) Corporate Debt Securities - - - NIL

Non- SLR Investment Portfolio

i) Issuer composition of Non- SLR Investments (` in crore)

S.N. Issuer Amount Extent of private

placement

Extent of ‘below

investment grade’

securities

Extent of ‘unrated’

securities

Extent of ‘unlisted’

securities

(1) (2) (3) (4) (5) (6) (7)

i PSUs 25.06 0.00 0.00 11.02 0.00

ii FIs 70.84 0.00 0.00 0.00 4.91

iii Banks 2141.38 34.83 0.00 0.00 0.00

iv Private Corporates 168.84 36.92 0.00 0.00 0.00

v Subsidiaries/Joint Ventures 37.23 37.23 0.00 0.00 37.23

vi Others 29.87 36.92 0.00 0.00 60.02

Sub Total 2473.22 145.90 0.00 11.02 102.18

vii Provision held towards depreciation 5.64 x x x x

Total 2467.58 x x x x

156

ii) ( ` )

jkf'k 12.55

4.89

12.55

4.89

4.89

iii)

%

9.

(i)

12817.39

(ii)

6618.27

5967.05

(iii) 126.57

(iv) % *PV01

(v) *PV01

157

ii) Non-performing Non-SLR Investment (` in crore)

Particulars Amount

Opening balance as on 01.04.2012 12.55

Additions during the year since 1st April 2012 4.89

Reductions during the above period 12.55

Closing balance as on 31.03.2013 4.89

Total provisions held 4.89

iii. The value of sales and transfer of securities to/from HTM category does not exceeds 5% of the book value of Investments held in HTM category at the beginning of the year.

9. DERIVATIVES

Qualitative Disclosure

The Bank has well defined structure and organization for management of risk in derivatives, with clear role of Front, a. Mid and Back office for Risk Management.

For risk measurement and monitoring, Integrated Risk Management Department is periodically monitoring risk on b. account of outstanding forward contracts and outstanding forward contracts of top 20 borrower account is advised to the user department.

Bank is not undertaking Exchange Traded Interest Rate Derivatives , Forward Rate Agreement, Interest Rate Swaps c. and Credit Default Swaps.

Bank is not undertaking any trading in derivative transaction in its own account. The Bank undertakes Forward d. contracts with counter parties only on behalf of its constituents in order to hedge their on balance-sheet/ off-balance-sheet assets and liabilities as per the RBI directives.

Forward contracts so booked are covered back to back with counter parties. e.

All outstanding forward contracts are marked to market as per the RBI directives and are shown in the balance-sheet f. as contingent liabilities.

Quantitative Disclosure

(Forward Contracts booked on behalf of constituents) (` in crore)

Sl. No. Particular Currency Derivative Interest rate Derivative

(i) Derivative (Notional Principal Value)

(a) For hedging 12817.39 NIL

(b) For Trading NIL NIL

(ii) Marked to Market (1)

(a) Assets 6618.27 NIL

(b) Liabilities 5967.05 NIL

(iii) Credit Exposure 126.57 NIL

(iv) Likely impact of one percentage change in interest rate (100*PV01)

a) on hedging derivatives NIL NIL

b) on trading derivatives NIL NIL

(v) Maximum and Minimum of 100*PV01 observed during the year

a) on hedging NIL NIL

b) on trading NIL NIL

158

10.

i) ( ` )

(i) (») 2.27% 1.92%

(ii)

1651.47 835.40

1627.88 1571.93

+ 3279.35 2407.33

i. 451.00 253.32

ii. 245.61 227.45

iii. 463.25 275.09

1159.86 755.86

2119.49 1651.47

(iii)

945.41 341.33

1009.83 1334.13

+ 1955.24 1675.46

i. 286.28 234.74

ii. 150.28 220.22

iii. 214.62 275.09

+ 651.96 730.05

1303.28 945.41

(iv)

705.05 494.07

561.72 486.07

450.55 275.09

0.00 0.00

0.00 0.00

816.21 705.05

ii)

% %

iii)

1 9.25 6.21

2 2.42 2.63

3 7.80 3.83

4 2.03 2.26

159

10. Asset Quality

i) Non-Performing Asset (` in Crore)

Particulars Current Year

Previous Year

(i) Net NPAs to Net Advances (%) 2.27% 1.92%

(ii) Movement of Gross NPAs

a. Opening balance 1651.47 835.40

b. Additions (Fresh NPA) during the year 1627.88 1571.93

c. Sub-total (a+b) 3279.35 2407.33

d. Reductions during the year by way of :

i. Up gradations 451.00 253.32

ii. Recoveries (exc. Recoveries made from upgraded A/c) 245.61 227.45

iii. Write- off 463.25 275.09

Sub-total (d) 1159.86 755.86

e. Closing balance (c-d) 2119.49 1651.47

(iii) Movement of Net NPAs

a. Opening balance 945.41 341.33

b. Additions during the year 1009.83 1334.13

c. Sub-total (a+b) 1955.24 1675.46

d. Reductions during the year by way of :

i. Up gradations 286.28 234.74

ii. Recoveries (exc. Recoveries made from upgraded A/c) 150.28 220.22

iii. Write- off 214.62 275.09

Sub-total (d) 651.96 730.05

e. Closing balance (c-d) 1303.28 945.41

(iv) Movement of provisions for NPAs (excluding provisions on standard assets) including floating provision (as stated in Note No.19)

a. Opening balance 705.05 494.07

b. Provisions made during the year 561.72 486.07

c. Write-off/write back/adjustment of excess provisions 450.55 275.09

d. Provision made for standard accounts covered under

ADWR Scheme

0.00 0.00

e. Provision used for writing off standard accounts

covered under ADWR Scheme

0.00 0.00

f. Closing Balance 816.21 705.05

ii) Provisioning Coverage Ratio

Provisioning to Gross Non-Performing Assets of the Bank as on 31st March, 2013 is 58.64%. (prev. year 58.26%), including AUCA.

iii) Sector-wise NPAs

S. No. Sector % of NPAs to Total Advance in that sector

Current Year

% of NPAs to Total Advance in that sector

Previous Year

1 Agriculture & allied activities 9.25 6.21

2 Industry (Micro & small, medium and large) 2.42 2.63

3 Services 7.80 3.83

4 Personal Loans 2.03 2.26

160

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164

v)

( ` )

i.

ii.

iii.

iv.

v.

vi)

( ` )

1.

2. (

( ` )

1.

2.

3.

vii)

`

165

v) Details of financial assets sold to Securitization / Reconstruction Company for Asset Reconstruction

(`in Crore)

Particulars Current

Year

Previous

Year

i. No. of accounts Nil Nil

ii. Aggregate value (net of provisions) of accounts sold to SC/RC Nil Nil

iii. Aggregate consideration Nil Nil

iv. Additional consideration realized in respect of accounts transferred in earlier

years

Nil Nil

v. Aggregate gain/loss over net book value. Nil Nil

vi) Details of non-performing financial assets purchased/sold

a) Details of Non-Performing financial assets purchased:

(` in Crore)

Particulars Current

Year

Previous

Year

1. (a) No. of accounts purchased during the year Nil Nil

(b) Aggregate outstanding Nil Nil

2. (a) Of these, number of accounts restructured during the year Nil Nil

(b) Aggregate outstanding Nil Nil

b) Details of Non-Performing financial assets sold:

(` in Crore)

Particulars Current

Year

Previous

Year

1. No. of accounts sold Nil Nil

2. Aggregate outstanding Nil Nil

3. Aggregate consideration received Nil Nil

vii) Disclosure relating to Securitisation

S. No Particulars No / Amount (Rs. in crore)

1 No of SPVs sponsored by the bank for securitization* NIL

2 Total amount of securitized assets as per books of the SPVs sponsored by

the bank

NIL

3 Total amount of exposures retained by the bank to comply with MRR as on

the date of balance sheet

NIL

a) Off-balance sheet exposures

First Loss

Others

b) On- balance sheet exposures

First Loss

Others

166

i

ii

i

ii

viii) ( ` )

77.50 64.19

302.14 224.64

ix) ( ` )

11.

i. 9.83% 9.60%

ii. 0.95% 0.91%

iii. 2.25% 2.27%

iv. 0.96% 0.99%

v. ` 9.00 8.27

vi. ` 0.06 0.05

167

4 Amount of exposures to securitization transactions other than MRR

a) Off-balance sheet exposure NIL

i) Exposure to own securitizations

First Loss

Others

ii) Exposure to third party securitizations

First Loss

Others

b) On- balance sheet exposures

i) Exposure to own securitizations NIL

First Loss

Others

ii) Exposure to third party securitizations

First Loss

Others

* Only the SPVs relating to outstanding securitization transactions may be reported here.

vii) Provisions on Standard Asset

(` in Crore)

Particulars Current Year Previous Year

Provisions towards Standard Assets-made during the year 77.50 64.19

Cumulative Provision held for Standard Assets 302.14 224.64

viii) Overseas Assets, NPAs and Revenue

(` in Crore)

Particulars Amount

Total Assets NIL

Total NPAs NIL

Total Revenue NIL

11. Business Ratios

Particulars Current Year Previous Year

i. Interest Income as a percentage to Working Funds 9.83% 9.60%

ii. Non-interest income as a percentage to Working Funds 0.95% 0.91%

iii. Operating Profit as a percentage to Working Funds 2.25% 2.27%

iv. Return on Assets 0.96% 0.99%

v. Business (Deposits plus advances) per employee (`. in crore) 9.00 8.27

vi. Net Profit per employee (`. in crore) 0.06 0.05

168

12.

( ` )

9549 81434 100140 59791 728815 335226 355937 2550692 1524268 1465770 7211622

49253 17844 204671 33888 123282 121214 313655 3458537 346736 1084417 5753497

1806 5800 2428 9894 170652 82438 15171 418737 524974 782688 2014588

209961 10857 0 16286 79285 27143 4886 57500 50000 128285 584203

16688 165 3602 7417 41417 35194 2135 12184 1988 0 120790

1772 10880 40 16341 18306 31806 12610 2606 100 21 94482

13.

i) ( ` )

i) 5375.33

3938.25

3734.69

3414.43

ii) 868.84 526.23

iii)

0.00 0.00

0.00 0.00

913.52 1573.15

7157.69 5834.07

ii) ( ` )

i) 115.85 94.37

169

12. Asset Liability Management

Maturity pattern of certain items of assets and liabilities (` in Crore)

Day 1 2 to 7 days

8 to 14days

15 to 28days

29 days to

3 months

Over 3 months

& up to 6 months

Over 6months

& up to 1 year

Over 1 year

& up to 3years

Over 3 years

& up to 5years

Over 5 years

Total

Deposits 9549 81434 100140 59791 728815 335226 355937 2550692 1524268 1465770 7211622

Advances 49253 17844 204671 33888 123282 121214 313655 3458537 346736 1084417 5753497

Investments 1806 5800 2428 9894 170652 82438 15171 418737 524974 782688 2014588

Borrowings 209961 10857 0 16286 79285 27143 4886 57500 50000 128285 584203

Foreign

Currency

assets

16688 165 3602 7417 41417 35194 2135 12184 1988 0 120790

Foreign

Currency

liabilities

1772 10880 40 16341 18306 31806 12610 2606 100 21 94482

(In compiling the above data, certain assumptions as per RBI guidelines and estimates have been made by the

management and relied upon by auditors)

13. Exposures :

i) Exposure to Real Estate Sector (` in Crore)

Category Current

Year

Previous

Year

a) Direct Exposure

i) Residential Mortgages – Lending fully secured by mortgages on residential property

that is or will be occupied by the borrower or that is rented Out of which Individual

housing loans eligible for inclusion in priority sector advances

5375.33

3938.25

3734.69

3414.43

ii) Commercial Real Estate 868.84 526.23

Lending secured by mortgages on commercial real estates

(including Non-fund based (NFB) limits)

iii) Investment in Mortgage Backed Securities (MBS) and other securities exposures:-

a) Residential 0.00 0.00

b) Commercial Real Estate 0.00 0.00

b) Indirect Exposure

Fund and Non-fund based exposures on National Housing Bank (NHB) and Housing

Finance Companies (HFCs)

913.52 1573.15

Total Exposure to Real Estate Sector 7157.69 5834.07

ii) Exposure to Capital Market (` in Crore)

S.

No.

Particulars Current Year

Previous Year

i) Direct investment in equity shares, convertible bonds, convertible debentures and units of

equity–oriented mutual funds the corpus of which is not exclusively invested in corporate

debt

115.85 94.37

170

ii) 0.00 0.00

iii) 0.00 0.00

iv) 0.00 0.00

v) 0.00 0.00

vi) 0.00 0.00

vii) 0.00 0.00

viii) 0.00 0.00

ix) 0.00 0.00

x) 25.49 21.09

141.34 115.46

14. ( ` )

695.69 382.68

195.90 223.58

88.07 32.47

17.90 1.03

0.00 1.57

0.00 0.00

0.00 0.00

997.56 641.33

15.

16. ( ` )

i)

ii)

171

ii) Advances against shares/bonds/debentures or other securities or on clean basis

to individuals for investment in shares (including IPOs/ESOPs), convertible bonds,

convertible debentures, and units of equity-oriented mutual funds;

0.00 0.00

iii) Advances for any other purposes where shares or convertible bonds or convertible

debentures or units of equity oriented mutual funds are taken as primary security;

0.00 0.00

iv) Advances for any other purposes to the extent secured by the collateral security of

shares or convertible bonds or convertible debentures or units of equity oriented mutual

funds i.e. where the primary security other than shares/convertible bonds/convertible

debentures/units of equity oriented mutual funds `does not fully cover the advances;

0.00 0.00

v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf of

stockbrokers and market makers

0.00 0.00

vi) Loans sanctioned to corporates against the security of shares / bonds/debentures or

other securities or on clean basis for meeting promoter’s contribution to the equity of new

companies in anticipation of raising resources;

0.00 0.00

vii) Bridge loans to companies against expected equity flows/issues; 0.00 0.00

viii) Underwriting commitments taken up by the banks in respect of primary issue of shares or

convertible bonds or convertible debentures or units of equity oriented mutual funds;

0.00 0.00

ix) Financing to stockbrokers for margin trading; 0.00 0.00

x) All exposures to Venture Capital Funds (both registered and unregistered) 25.49 21.09

Total Exposure to Capital Market 141.34 115.46

14. Risk Category wise Country Exposure (`. in crore)

Risk Category Exposure (net) as at March 31, 2013 (Current Year)

Provision held as at March 31, 2013 (Current Year)

Exposure (net) as at March 31, 2012 (Previous Year)

Provision held as at March 31, 2012 (Previous Year)

Insignificant 695.69 NIL 382.68 Nil

Low 195.90 NIL 223.58 Nil

Moderately Low 88.07 NIL 32.47 Nil

Moderate 17.90 NIL 1.03 Nil

Moderately High 0.00 NIL 1.57 Nil

High 0.00 NIL 0.00 Nil

Very High 0.00 NIL 0.00 Nil

Total 997.56 NIL 641.33 Nil

The net funded exposure of the Bank in respect of foreign exchange transactions with each country is within 1% of

the total assets of the Bank, hence no provision is required.

15. Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL) exceeded by the bank

The Bank has not exceeded the Single Borrower Limit and Group Borrower Limit during the year.

16. Unsecured Advances

(`. in crore)

i) Total amount of unsecured advances for which intangible securities such as charge over the rights, licenses, authority, etc. has been taken

NIL

ii) Estimated value of such intangible collateral NIL

172

17. ( ` )

7.60 23.51

561.72 479.59

0.00 0.00

77.50 64.19

(i) 269.71 243.11

(ii) 0.00 0.00

(iii) 0.30 0.30

86.59 -0.96

0.00 -0.78

0.00 0.00

-1.42 13.39

1002.00 822.35

(19.36) 15.23

982.64 837.58

18.

19. ( ` )

1 61.14 61.14

2.

3.

4. 61.14 61.14

20.

61

5959

5949

71

01*

09

05**

01

173

17. Details of Provisions & Contingencies in Profit & Loss Account are as under: (`. in crore)

Particulars Current

Year

Previous

Year

Provision for Depreciation/Amortisation on investments 7.60 23.51

Provision for Non Performing Assets 561.72 479.59

Floating provision towards NPAs 0.00 0.00

Provision on Standard Assets 77.50 64.19

Provision for Taxation:

(i) Income Tax 269.71 243.11

(ii) Interest Tax 0.00 0.00

(iii) Wealth Tax : 0.30 0.30

Provision for Sacrifice of Interest in CDR/Non CDR A/cs 86.59 -0.96

Provision for Restructured Agriculture Advances 0.00 -0.78

Provision for Agr. Debt Waiver based on NPV 0.00 0.00

Others/Contingencies -1.42 13.39

1002.00 822.35

Deferred Tax Liabilities/(Asset) (19.36) 15.23

TOTAL 982.64 837.58

18. Disclosure of Penalties Imposed by RBI

No penalty was imposed during the year as per section 46(4) of the Banking Regulation Act 1949 for contraventions of any of the provisions of the Act or non compliance with any other requirement of the Banking Regulation Act 1949.

19. Floating Provisions (`. in crore)

S.No Particulars Current

Year

Previous

Year

1 Opening balance in Floating Provisions Account 61.14 61.14

2. The quantum of Floating Provisions made in the accounting year Nil Nil

3. Purpose and amount of draw down made during the accounting year Nil Nil

4. Closing balance in Floating Provisions Account 61.14 61.14

20. Details of Complaints/unimplemented awards of Banking Ombudsman

A. Customer Complaints

(a) No. of Complaints pending at the beginning of the year 61

(b) No. of Complaints received during the year(*) 5959

(c) No. of Complaints redressed during the year(*) 5949

(d) No. of Complaints pending at the end of the year 71

* Excluding 1593 complaints found non maintainable

B. Awards passed by the Banking Ombudsman

(a) No. of unimplemented Awards at the beginning of the year 01*

(b) No. of Awards passed by the Banking Ombudsman during the year 09

(c) No. of Awards implemented during the year 05**

(d) No. of unimplemented Awards at the end of the year (Appeal has been made before Appellate Authority) 01

*Appeal allowed and award passed by BO set aside by the Appellate Authority.

** In remaining 3 cases, 1 case BO Jaipur has cancelled the award. In 2 cases complainant has not accepted the award.

174

21.

22. tekvksa] vfxzeksa] fuos'k rFkk vutZd vkfLr;ksa (,uih,) dk ladsaæ.k

(v) tek jkf'k dk ladsaæ.k ( ` )

10213.45

14.16%

( ` )

9429.98

16.13%

( ` )

11479.99

13.45%

( ` )

584.05

23.

( ` )

15.68

0.71

0.93

17.32

24.

( ` )

1. 90442355.36 13130115.64 --- 484.36

2. 25714923.46 153659.00 --- 147.25

116157278.82 13283774.64 631.61

25.

` `

175

21. Off-balance Sheet SPVs sponsored (which are required to be consolidated as per accounting norms)

Name of the SPV sponsored

Domestic Overseas

NIL NIL

22. Concentration of Deposits, Advances, Exposures and NPAs

a) Concentration of Deposits (`. in Crore)

Total Deposits of twenty largest depositors 10213.45

Percentage of Deposits of twenty largest depositors to total Deposits of the bank 14.16%

b) Concentration of Advances (`. in Crore)

Total Advances to twenty largest borrowers 9429.98

Percentage of advances to twenty largest borrowers to total Advances of the bank 16.13%

c) Concentration of Exposure (`. in Crore)

Total Exposure to twenty largest borrowers/customers 11479.99

Percentage of Exposures to twenty largest borrowers/customers to total Exposure of the bank on

Borrowers customers

13.45%

d) Concentration of NPAs (`. in Crore)

Total Exposure to top four NPA accounts 584.05

23. Bancassurance Business :

Details of fees/remuneration received in respect of the bancassurance business for the year ended 31st March, 2013

(`. in Crore)

Name of the Company Amount

LIFE INSURANCE

SBI Life Insurance Co. Ltd. 15.68

NON LIFE INSURANCE

SBI General Insurance 0.71

Others (National Insurance Co. Ltd.) 0.93

TOTAL 17.32

24. Disclosure of Letter of Comfort (LOCs) issued by banks

S.No. Particulars USD Euro Yen INR (`. in crore)

1. Other Banks 90442355.36 13130115.64 --- 484.36

2. State Bank of India & Associates 25714923.46 153659.00 --- 147.25

TOTAL 116157278.82 13283774.64 631.61

The Bank has no subsidiary, as such no Letter of Comfort has been issued on their behalf.

25. Draw Down from Reserves

There has been a draw down of Rs.2.29 crores (previous year Rs.11.12 crores) from Investment Reserve during the year.

176

26. ,e-,l-,e-bZ-Mh- vf/fu;e ds varxZr izdVhdj.k

lw{e ,oa y?kq m|fe;ksa ls Ø; py lEifr ds Ø; ls lacaf/r lwpuk dk fooj.k

(` djksM+ esa)

Ø-la- fooj.k ewy jkf'k C;kt

1 31-03-2013 dks fdlh Hkh vkiwfrZdrkZ dh cdk;k ewy jkf'k ,oa ml ij ns; C;kt (vyx vyx n'kkZ;k tk;s)

'kwU; 'kwU;

2 o"kZ 2012&13 ds nkSjku fdlh vkiwfrZdrkZ dks fu;r fnol ds i'pkr~ fd;s x;s Hkqxrku dh jkf'k ,oa ,e-,l-,e-bZ-Mh- vf/fu;e dh /kjk 16 ds varxZr Øsrk }kjk pqdk;s x;s C;kt dh jkf'k

'kwU; 'kwU;

3 Hkqxrku (tks o"kZ ds nkSjku fu;r fnol ds i'pkr pqdk;s x;s gSa)] ftUgsa bl vf/fu;e esa mYysf[kr C;kt dks tksM+sa fcuk fd;k x;k gS] esa nsjh dh vof/ gsrq ns; ,oa Hkqxrku ;ksX; C;kt dh jkf'k

XXX 'kwU;

4 31-03-2013 dks vnÙk jgus okys mikftZr C;kt dh jkf'k XXX 'kwU;

5 vuqorhZ o"kksZa esa Hkh] tc rd y?kq m|eh dks mi;qDZr ns; C;kt dk okLro esa Hkqxrku ugha dj fn;k tkrk] Hkqxrku ;ksX; vkxs ds vnÙk C;kt dh jkf'k] tks vf/fu;e dh /kjk 23 ds varxZr dVkSrh ;ksX; O;; ds :i esa vLohdk;Z dh tkuh gSA

XXX 'kwU;

ys[kk ekudksa ls lEcfU/r izdVhdj.k

27.

,,l&5 ds rgr iwoZ vof/ vk;@O;; enksa gsrq dksbZ oLrqijd izdVhdj.k vko';d ugha gSA

28. ys[kk ekud&9 % jktLo vfHkKku

ys[kk uhfr] ftldk vuqlj.k fd;k x;k gS] ds vuqlkj ftu vk;&O;; dh enksa dk ys[kkadu udn vk/kj ij fd;k x;k gS] Hkkjrh; fjT+koZ cSad ds fn'kk funsZ'kkas ds vuq:i oLrqijd ugha le>s x;s gS] vr% izdVhdj.k dh vko';drk ugha gSA

29. ys[kk ekud 11&fons'kh fofue; njksa esa ifjorZu

fons'kh eqnzk fuf/ dk mrkj&p<+ko

30. ys[kk ekud 6&

356934875.00 340958011.50

248344660.05 190062137.43

301575092.66 316847150.83

5606251.30 14103595.25

912460879.01 861970895.01

177

26. DISCLOSURES IN TERMS OF MSMED ACT

DETAILS OF INFORMATION RELATING TO PURCHASE OF MOVEBALE PROPERTY FROM MICRO AND SMALL ENTERPRISES

(` in crore)

S.No. Particulars Principal Amount

Interest

1 The principal amount and the interest due thereon (to be shown separately)

remaining unpaid to any supplier as on 31/03/2013

NIL NIL

2 The amount of interest paid by the buyer in terms of section 16 of the

MSMED Act, along with the amount of the payment made to the supplier

beyond the appointed day during the year 2012-13.

NIL NIL

3 The amount of interest due and payable for the period of delay in making

payment (which have been paid but beyond the appointed day during the

year) but without adding the interest specified under this Act;

XXX NIL

4 The amount of interest accrued and remaining unpaid as on 31/03/2013 XXX NIL

5 The amount of further interest remaining due and payable even in the

succeeding years, until such date when the interest dues as above are

actually paid to the small enterprise, for the purpose of disallowance as a

deductible expenditure under section 23 of the Act.

XXX NIL

DISCLOSURES IN TERMS OF ACCOUNTING STANDARDS (AS)

27. AS-5 ( Net Profit or Loss for the period, prior period items and changes in accounting policies)

There are no material prior period income/expenditure items require disclosure under AS-5.

28. AS- 9 Revenue Recognition

In line with the Accounting Policy followed, items of income / expenditure accounted on cash basis are considered not material, in terms of RBI guidelines, hence do not require disclosure.

29. AS 11- Changes in foreign exchange rates:

Movement of foreign currency translation reserve

Particulars Amount

Balance as at 1st April 2012 NIL

Credited during the period 01.04.2012 to 31.03.2013 NIL

Withdrawn during the period NIL

Balance as at 31.03.2013 NIL

30. AS – 6 Depreciation Accounting

Break up of total depreciation for the year for each class of assets.

Class of assets 31.03.2013 31.03.2012

Premises 356934875.00 340958011.50

Other Fixed Assets 248344660.05 190062137.43

Computer Items 301575092.66 316847150.83

Computer Software 5606251.30 14103595.25

Total 912460879.01 861970895.01

178

31. ys[kk ekud 15&deZpkjh ykHk

cSad }kjk Hkkjrh; lunh ys[kkdkj laLFkku }kjk tkjh ys[kk ekud&15 (R)- deZpkjh ykHk dks 1 vizsy 2007 ls viuk;k x;k gSA

cSad }kjk deZpkjh ykHkksa ds fy, mn~Hkwr gq, nkf;Roksa dks rqyu i=k dh frfFk dks vius ys[kksa esa nkf;Ro ds orZeku ewY; dks ;kstuk vkfLr;ksa ds mfpr ewY; ls ?kVkdj ekU;rk iznku dh tkrh gS

vU; nh?kZdkyhu deZpkjh ykHkksa (vodk'k ;k=kk fj;k;r] #X.k vodk'k vkfn) ds laca/ esa 31-03-2013 dks cdk;k laØe.k dkyhu nkf;Ro `178-76 djksM+ gS

1) fu/kZfjr ykHk isa'ku ;kstuk ,oa minku

(v) ys[kk ekud&15 ds vuqlkj fu/kZfjr ykHk isa'ku ;kstuk ,oa xzsP;qVh ;kstuk dh fLFkfr fuEu lkj.kh ds vuqlkj gS%&(` djksM+ esa)

fooj.k isa'ku ;kstuk minku

fu/kZfjr ykHk nkf;Ro ds orZeku ewY; esa ifjorZu

01-04-2012 dks vkjafHkd fu/kZfjr ykHk nkf;Ro 2120.81 408.06

pkyw lsok ykxr 52.12 18.52

C;kt ykxr 185.57 34.69

thoukafdd gkfu;ka (ykHk) 105.28 11.32

iwoZ lsok ykxr (vfufgr ykHk) - -

iwoZ lsok ykxr (fufgr ykHk) - -

vnk fd;s x;s ykHk -128.25 -37.98

nkf;Ro ifj'kksf/r - -

31-3-2013 dks vafre fu/kZfjr ykHk nkf;Ro 2335.53 434.61

;kstuk vkfLr;ksa esa ifjorZu

01-04-2012 dks ;kstuk vkfLr;ksa dk izkjafHkd mfpr ewY; 1800.27 287.98

;kstuk vkfLr;ksa dk vuqekfur izfriQy 144.02 23.04

fu;ksDrk }kjk ;ksxnku 228.00 40.00

vnk fd;s x;s ykHk -128.25 -37.98

thoukafdd ykHk (gkfu;ka) 17.42 1.36

31-03-2013 dks ;kstuk vkfLr;ksa dk vafre mfpr ewY; 2061.46 314.40

nkf;R; ds orZeku ewY; ,oa ;kstuk vkfLr;ksa ds mfpr ewY; dk lek/ku

31-03-2013 dks fuf/d nkf;Ro dk orZeku ewY; 2335.53 434.61

31-03-2013 dks ;kstuk vkfLr;ksa dk mfpr ewY; 2061.46 314.40

deh@(vkf/D;) 274.07 120.21

vfHkKkfur iwoZ lsok ykxr --- ----

,-,l- 15 ds iSjk 59(ch) esa nh xbZ lhek ds dkj.k vfHkKkfur ugha dh x;h laifr dh jkf'k ---- ----

'kq¼ nkf;Ro@(vkfLr) 274.07 120.21

;kstuk vkfLr;ksa ij vuqHko dk lek;kstu 17.42 1.36

;kstuk ns;rkvksaa ij vuqHko dk lek;kstu -22.71 11.32

ykHk ,oa gkfu [kkrs esa vfHkKkfur 'kq¼ ykxr

pkyw lsok ykxr 52.12 18.52

C;kt ykxr 185.57 34.69

;kstuk vkfLr;ksa esa vuqekfur izfriQy -144.02 -23.04

179

31. AS – 15 Employee Benefits (Revised 2005)

The Bank has adopted Accounting Standard 15(R) - Employee Benefits, issued by the Institute of Chartered Accountants of India (ICAI), with effect from 1st April 2007.

The Bank recognizes in its books of accounts the liability arising out of Employee Benefits as the sum of the present value of obligation as reduced by fair value of plan assets on the Balance Sheet date.

In case of Other Long term employee benefits (LFC, Sick leave, etc.) the transitional liability outstanding for these benefits as on 31.03.2013 was Rs. 178.76 crores.

1) Defined Benefit Pension Plan and Gratuity

a) The following table sets out the status of the defined benefit Pension Plan and Gratuity Plan as required under AS 15:

(`. in crores)

Particulars Pension Plans Gratuity

Change in the present value of the defined benefit obligations

Opening defined benefit obligation at 1.04.2012 2120.81 408.06

Current Service Cost 52.12 18.52

Interest Cost 185.57 34.69

Actuarial losses (gains) 105.28 11.32

Past Service Cost (Non Vested Benefit) --- ---

Past Service Cost (Vested Benefit) --- ---

Benefits paid -128.25 -37.98

Liability Amortised --- ----

Closing defined benefit obligation at 31.03.2013 2335.53 434.61

Change in Plan Assets

Opening fair value of plan assets at 1.04.2012 1800.27 287.98

Expected Return on Plan assets 144.02 23.04

Contributions by employer 228.00 40.00

Benefit Paid -128.25 -37.98

Actuarial Gains (Losses) 17.42 1.36

Closing fair value of plan assets at 31.03.2013 2061.46 314.40

Reconciliation of present value of the obligation and fair value of the plan assets

Present Value of Funded obligation at 31.03.2013 2335.53 434.61

Fair Value of Plan assets at 31.03.2013 2061.46 314.40

Deficit/(Surplus) 274.07 120.21

Unrecognised Past Service Cost --- ----

Amount not recognized as asset because of limit in paragraph 59(b) of AS 15 ---- ----

Net Liability/(Asset) (c-d-e) 274.07 120.21

Experience adjustment on plan assets 17.42 1.36

Experience adjustment on plan liabilities -22.71 11.32

Net Cost recognized in the profit and loss account

Current Service Cost 52.12 18.52

Interest Cost 185.57 34.69

Expected return on plan assets -144.02 -23.04

180

'kq¼ thoukafdd gkfuo"kZ ds nkSjku vfHkKkfur 'kq¼ thoukafdd gkfu (ykHk) 87.86 9.96

vfHkKkfur iwoZ lsok ykxr (vfufgr ykHk) 46.89 30.00

vfHkKkfur iwoZ lsok ykxr (fufgr ykHk) ---- ----

pkyw o"kZ ds ykHk gkfu [kkrs dh vuqlwph 16 esa ^^deZpkfj;ksa dks Hkqxrku vkSj muds fy, izko/ku** esa lfEefyr fu/kZfjr ykHk ;kstukvksa dh dqy ykxr

228.42 70.13

;kstuk vkfLr;ksa ij izR;kf'kr izR;k; vkSj okLrfod izR;k; dk lek/ku;kstuk vkfLr;ksa ij izR;kf'kr izR;k; 144.02 23.04

;kstuk vkfLr;ksa ij thoukafdd (ykHk)@gkfu 17.42 1.36

;kstuk vkfLr;ksa ij okLrfod izR;k; 161.44 24.40

rqyui=k esa vfHkKkfur vkjafHkd ,oa vafre 'kq¼ nkf;Ro dk lek/ku01-04-2012 dks vkjafHkd 'kq¼ nkf;Ro 179.87 30.08

ykHk ,oa gkfu [kkrs esa vfHkKkfur O;; 228.42 70.13

?kVkb;sa% fu;ksDrk }kjk ;ksxnku 228.00 40.00

31-03-2013 dks rqyu i=k esa 'kq¼ nkf;Ro@lEifÙk vfHkKkfur 180.29 60.21

124.89 43.67

vkfLr;ksa dh Js.khxzsP;qVh dks"k isa'ku dks"k vU; ;kstuk,¡

jkf'k fu;ksftr vkfLr;ksa dk

izfr'kr

fu;ksftr vkfLr;ksa dk

izfr'kr

jkf'k fu;ksftr vkfLr;ksa dk

izfr'krdsUæh; ljdkj dh izfrHkwfr;k¡ 98.73 31.40 626.03 30.37 - -

jkT; ljdkj dh izfrHkwfr;k¡ 54.32 17.28 439.65 21.33 - -

lkoZtfud {ks=k bZdkbZ;ksa ds ca/i=k 62.73 19.95 252.84 12.27 - -

vU; ca/i=k 0.00 0.00 0.00 0.00 - -

cSad dh fe;knh tek,¡ 48.73 15.50 526.58 25.54 - -

fo'ks"k tek,¡ 0.00 0.00 0.00 0.00 - -

chek ;kstuk,¡ 19.52 6.21 0.00 0.00 - -

cSad [kkrk 6.17 1.96 2.34 0.11 - -

vU; (E;wpqvy iaQM vkfn) 24.20 7.70 214.02 10.38 - -

dqy 314.40 100.00 2061.46 100.00 - -

mi;qZDr of.kZr esa ls LVsV cSad lewg esa fuos'k

(LVsV cSad rFkk bldh lekuq"kaxh@lg m|e)

xzsP;qVh dks"k isa'ku dks"k vU; ;kstuk,¡

ca/i=k 12.50 3.97 87.00 4.22 - -

cSad tek,¡ 6.17 1.96 2.34 0.11 - -

cSad dh fe;knh tek,¡ 48.73 15.50 526.58 25.54 - -

181

Net actuarial losses

(Gain) recognized during the year 87.86 9.96

Past Service Cost (Non Vested Benefit) Recognized 46.89 30.00

Past Service Cost (Vested Benefit) Recognized ---- ----

Total costs of defined benefit plans included in current year P&L under

Sch 16 ‘Payments to and provisions for employees’

228.42 70.13

Reconciliation of expected return and actual return on Plan Assets

Expected Return on Plan Assets 144.02 23.04

Actuarial Gain/ (loss) on Plan Assets 17.42 1.36

Actual Return on Plan Assets 161.44 24.40

Reconciliation of opening and closing net liability recognized in Balance Sheet

Opening Net Liability as at 1.04.2012 179.87 30.08

Expenses as recognized in profit and loss account 228.42 70.13

Less : Employers Contribution 228.00 40.00

Net liability/(Asset) recognized in Balance Sheet as at 31.03.2013 180.29 60.21

Expected contribution in the next financial year (i.e. 2013-14) 124.89 43.67

Particulars of Investments under Plan Assets of Gratuity and Pension Fund and any other Plan as on 31st March 2013

Gratuity Fund Pension Fund Any other plan

Category of assets Amount % of Plan

Assets

Amount % of Plan

Assets

Amount % of Plan

Assets

Central Government Securities 98.73 31.40 626.03 30.37 - -

State Government Securities 54.32 17.28 439.65 21.33 - -

PSU Bonds 62.73 19.95 252.84 12.27 - -

Other Bonds 0.00 0.00 0.00 0.00 - -

FDR/TDR of Banks 48.73 15.50 526.58 25.54 - -

Special Deposits 0.00 0.00 0.00 0.00 - -

Insurance Scheme 19.52 6.21 0.00 0.00 - -

Bank A/C 6.17 1.96 2.34 0.11 - -

Others (Mutual Fund etc.) 24.20 7.70 214.02 10.38 - -

Total 314.40 100.00 2061.46 100.00 - -

Out of above following Investments are made in State Bank Group

(State Bank and its Subsidiaries/ joint Ventures)

Gratuity Fund Pension Fund Any other plan

Category of assets Amount % of Plan

Assets

Amount % of Plan

Assets

Amount % of Plan

Assets

Bonds 12.50 3.97 87.00 4.22 - -

Bank Deposits 6.17 1.96 2.34 0.11 - -

FDR/TDR of Banks 48.73 15.50 526.58 25.54 - -

182

chek ;kstuk,¡ 19.52 6.21 0.00 0.00 - -

vU; (E;wpqvy iaQM vkfn) 4.61 1.47 54.41 2.64 - -

91.53 29.11 670.33 32.51 - -

cV~Vk nj 8.50 8.50 8.50 8.75 - -

;kstuk vkfLr;kas ij vuqekfur izfriQy nj

8.00 8.00 8.50 8.00 - -

osru of¼ 3.50 3.50 3.50 3.50 - -

vU; eq[; /kj.kk;sa 2.00 2.00 2.00 2.00 - -

`

0 .93 0 .23

0. 98 4.21

- -

8.50% 8.50%

3.50% 3.50%

2.00% 2.00%

21.64 5.68

1.83 4.30

0.71 0.00

0.00 0.00

0.00 0.00

0.00 0.00

183

Insurance Scheme 19.52 6.21 0.00 0.00 - -

Others(Mutual Fund etc.) 4.61 1.47 54.41 2.64 - -

Total 91.53 29.11 670.33 32.51 - -

Principal Actuarial Assumptions

Gratuity Fund Pension Fund Any other plan

Category of assets Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Discount Rate 8.50 8.50 8.50 8.75 - -

Expected Rate of Return on Plan assets 8.00 8.00 8.50 8.00 - -

Salary escalation 3.50 3.50 3.50 3.50 - -

Attrition Rate 2.00 2.00 2.00 2.00 - -

Particulars about expense recognized in P&L Account in respect of Defined Contribution Plans

(Rs. in crores)

Name of the Defined Contribution Plan Amount debited to P&L

in 2011-12

Amount debited to P&L

in 2012-13

Contribution to Employee Provident Fund 0 .93 0 .23

New Pension Scheme (NPS) 0. 98 4.21

Other Plans (If any) - -

Other Long Term Employee Benefits

Principal Actuarial Assumptions for Leave Encashment

Particular Current Year Previous Year

Discount Rate 8.50% 8.50%

Salary Escalation 3.50% 3.50%

Attrition Rate 2.00% 2.00%

Name of the long term employee benefit Amount debited to

P&L in 2011-12

Amount debited to

P&L in 2012-13

Privilege Leave (Encashment) inculding Leave encashment at

the time of retirement

21.64 5.68

Leave Travel and Home Travel Concession (Encashment/

Availment)

1.83 4.30

Sick Leave 0.71 0.00

Silver jubilee award 0.00 0.00

Resettlement expenses on Superannuation 0.00 0.00

Casual Leave 0.00 0.00

184

0.00 0.00

0.00 0.00

24.18 9.98

o"kZ 2012&2013 ds nkSjku vfHkKkfur ,oa izko/kfur nh?kZdkfyd deZpkjh ykHkksa dk fooj.k fuEufyf[kr gSa%&

1 vodk'k udnhdj.k 173.72 5.68 179.40

2 vodk'k fdjk;k fj;k;r 19.65 4.30 23.95

3 flYoj tqcyh izko/ku 2.28 0.00 2.28

4 :X.k vodk'k 14.69 0.00 14.69

5. iquZLFkkiuk O;; 1.90 0.00 1.90

tksM+ 212.24 9.98 222.22

32.

Hkkjrh; fj”koZ cSad ds i=k la- chihchlh 81@21-04-018@2006&07 fnukad 18 vizSy] 2007 ds vuqlkj cSad us fuEufyf[kr [k.Mksa dh izkFkfed@O;olk; [k.M ds :i esa igpku dh gS

(v) dks"k ifjpkyu

(c) dEiuh@Fkksd cSafdax

(l) [kqnjk cSafdax

(n) vU; cSafdx ifjpkyu

dEiuh@Fkksd cSafdax ,oa [kqnjk cSafdax ifjpkyu lzksr tqVkus okyh izeq[k bdkbZ gSA dks"k [k.M dks vU; nks cSafdax [k.Mksa ls fuf/ ,sls ewY; ij feyrh gS] ftls vU; cSafdax ifjpkyu dh tekvksa dh ykxr ,oa fuf/ ,d=k djus ij gq, ifjpkyu O;; dks tksM+dj fudkyk tkrk gSA

vk; ,oa O;; rFkk vkfLr;ksa@nkf;Roksa dk vkoaVu

(v) fof'k"V [k.M ls lh/s vk; ,oa O;;ksa ,oa vkfLr;ksa@nkf;Roksa dks lEcfU/r [k.M dks vkoafVr fd;k tkrk gSA

(c) [k.Mksa ls lh/s lacaf/r uk gksus okyh enksa dks [kqnjk ,oa Fkksd [k.M dks fd;s x;s O;olk;@deZpkfj;ksa dh la[;k ds ewY;kuqikr@ lh/s vk; ls lacaf/r ewY;kuqikr esa vkoafVr fd;k tkrk gSA

cSad ds ikl vfo'ks"k lEifÙk;ka@nkf;Ro ,oa vk;@O;; gS ftUgsa fdlh fo'ks"k [k.M ls lacaf/r ugha fd;k tk ldrk gS vr% mUgsa xSj vkoafVr esa n'kkZ;k gSA

185

Retirement Award 0.00 0.00

Others 0.00 0.00

Total 24.18 9.98

Long term Employee Benefits:

Details of long-term employee benefits that are recognised and provided during the year 2012-13 are as under:-

(`. in crores)

S.No Details Of Long Term Employee Benefits

Opening Balance as on 01.04.2012

Current Year Liability Closing Balance as on 31.03.2013

1 Leave Encashment 173.72 5.68 179.40

2 L F C 19.65 4.30 23.95

3 Silver Jubilee Provision 2.28 0.00 2.28

4 Sick Leave 14.69 0.00 14.69

5. Resettlement Expenses 1.90 0.00 1.90

Total 212.24 9.98 222.22

32. AS-17 : Segmental Reporting

In terms of RBI Cir. No. BP.BC.81/21.04.018/2006-07 dated 18th April 2007, the Bank has identified following segments as Primary / Business Segment:

(a) Treasury Operations

(b) Corporate/Wholesale Banking

(c) Retail Banking

(d) Other Banking Operations

Pricing of Inter-segmental transfers:

The Corporate / wholesale Banking and Retail Banking Operations are the primary resource mobilizing unit. The treasury segment receives funds from the other two Banking Operations unit at a cost, which is computed on cost of deposits of Other Banking Operations plus operating expense incurred for mobilizing funds.

Allocation of Income and Expenses and Assets/Liabilities:

a) Income and Expenses and Assets/Liabilities directly attributed to particular segment are allocated to the relative

segment.

b) Items that are not directly attributable to segments are allocated to retail and wholesale segments in proportion to

the business managed / ratio of number of employees/ ratio of directly attributable income.

The bank has certain common assets /liabilities and income / expense that cannot be attributed to any particular

segment and hence the same are treated as unallocated.

186

(` djksM+ esa)

fooj.k tksM+

jktLo 1554.13 1212.77 4133.39 3258.71 4108.07 3707.11 -- -- 9795.59 8178.59

?kVkb;s % xSj vkoafVr varj [kaM jktLo

1571.12 1288.26

ifjpkyu ls vk; 8224.47 6890.33

ifj.kke -109.96 -176.88 643.39 578.25 639.46 657.83 -- -- 1172.90 1059.19

xSj&vkoafVr O;; 192.01 148.52

lapkyu ykHk (dj iwoZ ykHk) 980.89 910.67

250.65 258.64

vlk/kj.k ykHk@gkfu -- --

fuoy ykHk 730.24 652.03

[k.M vkfLr;k¡ 22631.63 17465.37 37789.23 31886.28 25536.70 22953.71 -- -- 85957.56 72305.35

xSj&vkoafVr vkfLr;k¡ 59.27 222.79

dqy vkfLr;k¡ 86016.83 72528.14

[k.M ns;rk,¡ 22606.03 17469.33 33631.71 28269.58 22727.19 20350.19 -- -- 78964.93 66089.10

xSj&vkoafVr ns;rk,¡ 2287.76 2274.16

dqy ns;rk,a 81252.69 68363.26

Hkkjr esa leLr ifjpkyuksa dks ,d izfrosnuh; [k.M ekuk x;k gS ,oa blhfy, xkS.k@ HkkSxksfyd [k.M dks vko';d ugha le>k x;k gSA

33 .

Hkkjrh; lunh ys[kkdkj laLFkku }kjk tkjh ys[kk ekud&18 ds ^lEcfU/r i{k izdVhdj.k* lEcU/h iSjk 9 ds vuqlkj] cSad ds jkT; fu;fU=kr miØe gksus ds dkj.k vU; jkT; fu;fU=kr miØeksa ds lkFk lEcU/ksa ,oa laO;ogkjksa ds izdVhdj.k dh vko';drk ugha gSA rFkkfi] Hkkjrh; lunh ys[kkdkj laLFkku }kjk tkjh ys[kk ekud 18 ds rgr izdVhdj.k ds mís'; ls fuEufyf[kr dks cSad }kjk lEcfU/r i{k le>k x;k%

i) izcU/ funs'kd dks lfEefyr djrs gq, lHkh iw.kZdkfyd funs'kd (ukekafdr funs'kd ds vykok)

1. Jh f'ko dqekjizcU/ funs'kd

osru ,oa HkÙks% ` 19,85,207.48 'kwU;

o"kZ 2012&13 ds fy;s fu"iknu lgc¼ izksRlkgu ` 12,69,500.00 'kwU;

ii) mDr en (i) esa lUnfHkZr lHkh funs'kdksa ds lEcU/h 'kwU;

iii) mDr en (i) esa lUnfHkZr funs'kdksa ds Lo;a ds LokfeRo ds miØeksa dh lwph 'kwU;

blds vfrfjDr ys[kk ekud&18 ds iSjk 5 ds vuqlkj cSadj&xzkgd lEcU/h laO;ogkjksa dk izdVhdj.k vko';d ugha gSA mi;qZDr of.kZr lEcfUèkr i{kksa ds lkFk xSj&cSafdax ysunsu fuEukuqlkj gS%

lEcfU/r i{k dk uke

dqN ugha dqN ugha dqN ugha

187

PART – A: BUSINESS SEGMENTS

(`. in crore)

Particulars BUSINESS SEGMENTS

TOTALTreasury Corporate/ Wholesale Banking

Retail Banking

Other Banking Operations

Current Year

Prev. Year Current Year

Prev. Year Current Year

Prev. Year

Current Year

Prev.Year

Current Year

Previous Year

Revenue 1554.13 1212.77 4133.39 3258.71 4108.07 3707.11 -- -- 9795.59 8178.59

Less Inter Segment Revenue (Unallocated)

1571.12 1288.26

Income from Operations 8224.47 6890.33

Result -109.96 -176.88 643.39 578.25 639.46 657.83 -- -- 1172.90 1059.19

Unallocated Expenses 192.01 148.52

Operating Profit (Profit before tax)

980.89 910.67

Provision for Taxes 250.65 258.64

Extra-ordinary profit/loss -- --

Net Profit 730.24 652.03

Segment Assets 22631.63 17465.37 37789.23 31886.28 25536.70 22953.71 -- -- 85957.56 72305.35

Unallocated Assets 59.27 222.79

Total Assets 86016.83 72528.14

Segment Liabilities 22606.03 17469.33 33631.71 28269.58 22727.19 20350.19 -- -- 78964.93 66089.10

Unallocated Liabilities 2287.76 2274.16

Total Liabilities 81252.69 68363.26

PART B: GEOGRAPHIC SEGMENT

The entire Indian Operations are being treated as a single reportable segment and hence secondary / geographic segment is not considered necessary.

33. AS-18 : Related party disclosures

As per para 9 of the Accounting Standard 18 issued by the ICAI on “Related party disclosures” the Bank, being a state controlled enterprise is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. However, the Bank has considered the following as related parties for the purpose of disclosure under AS-18 issued by the ICAI:

i) All whole time Directors on the Board including Managing Director (excluding Nominee Director).

S.No. Name & designation Remuneration paid during the year 01.04.2012 to 31.03.2013

Amounts due to the bank as at 31.03.2013

1. Shri Shiva Kumar

Managing Director

Salary & Allow. : `. 19,85,207.48 Nil

Performance Linked Incentive for

the Year 2012-13 `. 12,69,500.00 Nil

ii) Relatives of the Directors referred to in item (i) above. NIL

iii) List of enterprises owned by the Directors referred to in item (i) above. NIL

Further in terms of the paragraph 5 of AS 18, transactions in the nature of banker-customer relationship are not required to be disclosed. The non-banking transactions with the aforesaid parties are, as under:

NAME OF THE TRANSACTING

RELATED PARTY

DESCRIPTION OF THE RELATED

PARTY

TRANSACTIONS

NIL NIL NIL

188

34.

dEiuh dh ifjpkfyr iV~Vksa ds laca/ esa egRoiw.kZ iV~Vk O;oLFkk;sa] tSls lafØ;k bdkb;k¡] dk;kZy;] vkokl bR;kfn gSaA ;s iV~Vs lkekU; ,d o"kZ ds vf/d ;k yEch vof/ (lekIr iV~Vk ds vykok) ds fy;s gksrs gSa tks fujLrhdj.k ;ksX; gksrs gSa lkekU;r% vkilh lgefr ls ikjLifjd lgefr ;ksX; 'krksZ ij uohuhdj.k ;ksX; gksrs gSaA dqy ns; iV~Vk fdjk;k ykHk gkfu [kkrs esa fdjk;k ds :i esa izHkkfjr fd;k x;k gSA

35.

fiNyk o"kZewy vtZu izfr 'ks;j (`. esa) 104.32 95.05

vofefJr vtZu izfr 'ks;j ( `. es) 104.32 95.05

lerk 'ks;j/kjdksa ds fy, miyC/ dj ds i'pkr~ 'kq¼ ykHk• (`.yk[kksa esa) 73024 65203

lerk 'ks;jksa dh Hkkfjr vkSlr la[;k• 70000000 68600000

ewy vtZu izfr 'ks;j• (`. esa) 104.32 95.05

vokfefJr vtZu izfr 'ks;j • (`. esa) 104.32 95.05

izfr 'ks;j vafdr ewY;• (`. esa) 10.00 10.00

36.

cSad dh dksbZ leuq"kaxh@lg;ksxh bdkbZ ugha gS vr% bl ckcr lwpuk 'kwU; gSA

37.

(` djksM+ esaa)

fiNyk o"kZ

Mwcr ,oa lafnX/ ½.kksa ds fy, izko/ku 18.96 0.00

vU; izko/ku 11.34 11.80

lsok fuo`fÙk gsrq izko/ku 63.07 61.23

vU; deZpkjh ykHkksa gsrq izko/ku 7.04 5.65

osru cdk;k gsrw izko/ku 11.36 0.00

ys[kk ekud & 15 (la'kksf/r 2005) dks ykxw djus ls mRi laØe.k dkyhu nkf;Roksa ls cuh vkLFkfxr dj vkfLr;ka

42.54 42.54

;ksx 154.31 121.22

vkLFkfxr dj nkf;Ro

mifpr] ysfdu vns; C;kt 140.30 126.77

fLFkj vkfLr;ksa ij ewY;ßkl 1.06 0.85

;ksx 141.36 127.63

12.95 (6.41)

189

34. AS-19: Leases:

The company's significant leasing arrangements are in respect of operating leases for premises like operational units, offices, residences etc. These leases, which are not non-cancelable are generally for more than one year or for longer periods (except expired leases) and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent to P&L accounts.

35. AS-20: Earnings per Share

Particulars Current Year Previous Year

Basic EPS (in `.) 104.32 95.05

Diluted EPS (in `.) 104.32 95.05

Calculation of Basic EPS

Net Profit after Tax available for Equity share holders (`. in lacs) 73024 65203

Weighted average number of equity shares 70000000 68600000

Basic earnings per share (in `. ) 104.32 95.05

Diluted earnings per share (in `. ) 104.32 95.05

Nominal Value per share (in `.) 10.00 10.00

36. AS-21: Consolidated Financial Statement

Bank has no Subsidiary/Associates hence the information in this regard is ’NIL’.

37. AS-22: Deferred Taxes

The components of deferred tax asset/liability as on 31.03.2013 are as under:

(`. in crore)

Particulars Current Year Previous Year

Deferred Tax Assets

Provision for Bad & Doubtful debts 18.96 0.00

Other Provisions 11.34 11.80

Provision for Retirement Benefits 63.07 61.23

Provision for other staff benefits 7.04 5.65

Provision for Wage Arrear 11.36 0.00

DTA created out of transitional liabilities arising due to implementation of

AS-15 (Revised 2005)

42.54 42.54

Total 154.31 121.22

Deferred Tax Liabilities

Interest accrued but not due 140.30 126.77

Depreciation on Fixed Assets 1.06 0.85

Total 141.36 127.63

Net Deferred Tax Asset/(Liability) 12.95 (6.41)

190

38.

cSad dh dksbZ leuq"kaxh@lg;ksxh bdkbZ ugha gS] vr% bl ckcr lwpuk 'kwU; gSA

39.

ifjpkyu dh lekfIr ds ifj.kke Lo:i cSd }kjk vkfLr;ksa dh izkfIr rFkk ns;rkvksa esa dksbZ dVkSrh ugha gqbZ gS rFkk u gh fdlh ifjpkyu dks lekIr djus ds fu.kZ; ftlesa mi;qZÙkQ izHkko gksxk] dks cSd us vafre :i fn;k gSA

40

lkWÝVos;j] tks gkMZos;j dk vfoHkkT; Hkkx gS] LFkkbZ lEifRr;ksa lfgr jkf'k ` 0-56 djksM+ (iwoZ o"kZ `0-97 djksM+) ds vykok dksbZ vewrZ vkfLr;ka ugha gSaA

41.

izca/u ds fopkj esa] cSad dh fdlh vkfLr esa {kj.k ugha gqvk gS ftl ij ys[kkekud 28 ^^vkfLr;ksa esa {kj.k** ykxw gksrk gSA

42.

(d) lekfJr nkf;Roksa gsrq cuk, izko/ku dk lapyu

(` djksM+ esa)

vFk 'ks"k 36.37 22.97

o"kZ ds nkSjku miyC/ djkbZ xbZ jkf'k;k¡ 2.18 15.96

o"kZ ds nkSjku iz;ksx dh xbZ jkf'k;k¡ 0.00 0.00

o"kZ ds nkSjku izR;korZu 3.66 2.56

bfr 'ks"k 34.89 36.37

n'kkZ;s x, nkf;Ro U;k;ky;@iapfu.kZ;@U;k;ky; ds ckgj le>kSrk] vihyksa ds fuLrkj.k] ek¡xh xbZ jkf'k] lafonkxr ckè;rkvksa] lEcf/r i{kdkjksa }kjk dh xbZ ek¡x ,oa izxfr ij vk/kfjr gSA

43. fiNys o"kZ ds vkadM+ksa dks pkyw o"kZ ds vkadM+ksa ds lkFk rqyuh; cukus ds fy,] tgka Hkh vko';d gS] iqulZewfgr ,oa iquoZxhÑr fd;k x;k gSA

191

38. AS-23 : Accounting for Investments in Associates in consolidated Financial Statements

Bank has no Subsidiary/Associates hence the information in this regard is ’NIL’.

39. AS-24: Discontinuing Operations

There has been no discontinuation of operations that has resulted in shedding of liability and realization of the assets by the Bank or decision to discontinue an operation, which will have the above effect, has been finalized by the Bank.

40. AS-26: Intangible Assets

There are no intangible assets except Software forming integral part of hardware included under Fixed Assets amounting to `. 0.56 crore ( prev. Year `. 0.97 crore)

41. AS-28: Impairment of Assets

In the opinion of the Management, there is no impairment to the assets during the year to which Accounting Standard 28 – “Impairment of Assets” applies.

42. AS-29: Statement of Provisions, Contingent liability & Contingent Assets

a) Movement of provisions for contingent liabilities

(`. in crore)

Particulars Current Year Previous Year

Opening Balance 36.37 22.97

Provided during the year 2.18 15.96

Amount used during the year 0.00 0.00

Reversed during the year 3.66 2.56

Closing Balance 34.89 36.37

b) Under Schedule 12 on Contingent Liabilities

Such liabilities are dependent upon the outcome of Court/arbitration/out of Court settlement, disposal of appeals and the amount being called up, terms of contractual obligations, development and raising of demand by concerned parties.

43. Previous year's figures have been regrouped and reclassified wherever necessary to make these comparable with the

current year's figures.

192

‘

d- ifjpkyu dk;Zdykiksa ls udnh izokg 22345569 (18247292)

[k fuos'k dk;Zdykiksa ls udnh izokg (863918) (464220)

x foÙkiks"k.k dk;Zdykiksa ls udnh izokg (2659043) 2786163

udnh ,oa udnh lerqY; esa fuoy ifjorZu 18822608 (15925349)

?k o"kZ ds vkjEHk esa udnh ,oa udnh lerqY; 44543310 60468659

M+ o"kZ dh lekfIr ij udnh ,oa udnh lerqY; (d$[k$x$?k) 63365918 44543310

d- ifjpkyu dk;Zdykiksa ls udnh izokg

dj iwoZ fuoy ykHk 9808848 9106740

lek;kstu %

ewY;ßkl izHkkj 571503 538239

lafnX/ ,oa Mwcr ½.kksa ds fy, izko/ku (pyu izko/ku lfgr) 5617196 4795864

ekud vkfLr;ksa ds fy, izko/ku 775000 641850

fuos'kksa ij ewY;ßkl@ifj'kks/u 75989 235123

iV~Vk lekuhdj.k 0 0

vodk'k udnhdj.k ds fy, izko/ku 56800 216400

cksul o vU; deZpkjh ykHkksa ds fy, izko/ku 42390 341600

osru cdk;k dk izko/ku 350000 0

vU; izko/ku 851705 116568

18149431 15992385

?kVk;k&izR;{k dj 2043258 1841018

mi&;ksx 16106173 14151367

lek;kstu %

tek jkf'k;ksa esa of¼@ (deh) 105441301 77197665

m/kj jkf'k;ksa esa of¼@ (deh) 28870538 (589356)

fuos'kksa esa (of¼)@ deh (34605552) (31722804)

vfxzeksa esa (of¼)@ deh (89389504) (85182719)

vU; nkf;Roksa esa of¼@ (deh) (4340790) 5168795

vU; lEifr;ksa esa (of¼)@ deh 263403 2729761

ifjpkyu dk;Zdykiksa }kjk iznÙk fuoy udnh 22345569 (18247294)

[k- fuos'k dk;Zdykiksa ls udnh izokg

fLFkj vkfLr;ksa esa (of¼)@ deh (863918) (464220)

fuos'k dk;Zdykiksa ls fuoy udnh (863918) (464220)

193

Statement of cash flow for the year ended 31st March 2013

(‘000 omitted)

Current Year Previous Year

A. CASH FLOW FROM OPERATING ACTIVITIES 22345569 (18247292)

B. CASH FLOW FROM INVESTING ACTIVITIES (863918) (464220)

C. CASH FLOW FROM FINANCING ACTIVITIES (2659043) 2786163

NET CHANGE IN CASH AND CASH EQUIVALENTS 18822608 (15925349)

D. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 44543310 60468659

E. CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (A+B+C+D) 63365918 44543310

A. CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before taxes 9808848 9106740

Adjustment for :

Depreciation Charges 571503 538239

Provision for Bad & Doubtful Debts (including floating provisions) 5617196 4795864

Provision for Standard Assets 775000 641850

Depreciation /Amortisation for Investments 75989 235123

Lease Equalistion 0 0

Provision for Leave Encashment 56800 216400

Provision for bonus and Other staff benefits 42390 341600

Provision for wage arrears 350000 0

Other Provisions 851705 116568

18149431 15992385

Less: Direct Taxes 2043258 1841018

SUB- TOTAL 16106173 14151367

ADJUSTMENT FOR:

Increase/(Decrease) in Deposits 105441301 77197665

Increase/(Decrease) in Borrowings 28870538 (589356)

(Increase)/Decrease in Investments (34605552) (31722804)

(Increase)/Decrease in Advances (89389504) (85182719)

Increase/(Decrease) in Other Liabilities (4340790) 5168795

(Increase)/Decrease in Other Assets 263403 2729761

NET CASH PROVIDED BY OPERATING ACTIVITIES 22345569 (18247294)

B. CASH FLOW FROM INVESTING ACTIVITIES

(Increase)/Decrease in Fixed Assets (863918) (464220)

NET CASH FROM INVESTING ACTIVITIES (863918) (464220)

194

‘

x- foÙkiks"k.k dk;Zdykiksa ls udnh izokg

lanÙk ykHkka'k (1173830) (744687)

v/huLFk ca/i=kksa ij C;kt (1485213) (1469150)

v/huLFk ca/i=kksa dk fuxZe 0 5000000

foÙkiks"k.k dk;Zdykiksa }kjk iznÙk fuoy udnh 2659043 2786163

?k- o"kZ ds vkjEHk esa udnh ,oa udnh lerqY;

gkFk udnh (blesa fons'kh djsalh uksV rFkk lksuk lfEefyr gS) 3514197 3185789

Hkkjrh; fj”koZ cSad eas 'ks"k 39856955 50582625

cSadksa esa 'ks"k rFkk ekax ij ,oa vYi lwpuk ij izkI; /u 1172158 44543310 6700245 60468659

M- o"kZ ds var esa udnh ,oa udnh lerqY;

gkFk udnh (blesa fons'kh djsalh uksV rFkk lksuk lfEefyr gS) 3529964 3514197

Hkkjrh; fj”koZZ cSad esa 'ks"k 58028636 39856955

cSadksa esa 'ks"k rFkk ekax ij ,oa vYi lwpuk ij izkI; /u 1807318 63365918 1172158 44543310

( -11617) ( 082103) ( 099374) ( 12705) ( 80527) ( 072332)

195

(‘000 omitted)

Current Year Previous Year

C. CASH FLOW FROM FINANCING ACTIVITIES

Dividend Paid (1173830) (744687)

Interest on Subordinated Bonds (1485213) (1469150)

Issue of Subordinated Bonds 0 5000000

NET CASH FROM FINANCING ACTIVITIES (2659043) 2786163

D. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

Cash in hand (including foreign currency notes and gold) 3514197 3185789

Balances with Reserve Bank of India 39856955 50582625

Balances with Banks and Money at Call and Short Notice 1172158 44543310 6700245 60468659

E. CASH AND CASH EQUIVALENT AT THE END OF THE YEAR

Cash in hand (including foreign currency notes and gold) 3529964 3514197

Balances with Reserve Bank of India 58028636 39856955

Balances with Banks and Money at Call and Short Notice 1807318 63365918 1172158 44543310

B. SRIRAMManaging Director

PRATIP CHAUDHURIChairman

RAJEEV N. MEHRA PRADEEP KUMAR SANYAL MIHIR KUMAR

SANJAY KUMAR SINGHChief General Manager

(Retail Banking)

SANTANU MUKHERJEE Chief General Manager (Commercial Banking)

MS. MALVIKA SINHA RAJESH T. MANUBARWALA BHARAT RATTAN

KISHOR BABU C. P.Dy. General Manager (Finance & Accounts)

NARAYANA SWAMY R.General Manager

(Treasury, F&A) & CFO

ARUN K. SARAF SUNIL DUTT BALI D.K. JAIN

Delhi May 06, 2013

For S. DAGA & CO.

Chartered Accountants(CA SHANTI LAL DAGA)

(M.No. F-11617)

PARTNER

For AGARWAL ANIL & CO.

Chartered Accountants

(CA ANIL AGRAWAL)

(M. No. 082103)

PARTNER

Firm Reg. No. 003222 N

For M.K. AGGARWAL & CO.

Chartered Accountants

(CA ATUL AGGARWAL)

(M. No. 099374)

PARTNER

Firm Reg. No. 001411 N

For CHATURVEDI & CO.

Chartered Accountants(CA SATISH CHANDRA

CHATURVEDI)

(M. No.12705)PARTNER

Firm Reg. No. 302137 E

For UBEROI SOOD &

KAPOOR

Chartered Accountants(CA SANJAY SOOD)

(M. No.80527)PARTNER

Firm Reg. No. 001462 N

For P S D & ASSOCIATES

Chartered Accountants(CA PRAKASH SHARMA)

(M. No. 072332)PARTNER

Firm Reg. No. 004501 C

As per our separate report of even date

DIRECTORS

196

The Managing Director at a press conference highlighting Financial Results for the year 2012-13