Dear Blog Members belonging to SBM,The 53rd Annual General Meeting of the shareholders of SBM will be held at the Jnana Jyothi Auditorium, Central College Campus, Palace Road, Bangalore-1 on Tuesday the 4th June, 2013 at 11:30 A.M.The Net Profit of the bank (in Crores of Rupees) is as under:

2010-11 2011-12 2012-13500.62 369.15 416.10

 Let us wait and see how much amount will be announced for the reimbursement of diagnostic charges this time for the bank pensioners.

I find the following mention in Page 58 of the annual report:

"4.4.2. Contribution made to the Retired Employee Medical Benefit Scheme, being at the sole discretion of the Management, is not recognised by the Management as a Long Term Employee Benefit and therefore no provision has been considered necessary for this liability on actuarial basis."

There is a mention about Unamortised Pension and Gratuity Liabilities in Page 78 under item 5.13. The last sentence in the item reads:

"..Had such circular not been issued by RBI [No.DBOD.BP.BC.80/21.04018/2010-11 on Re-opening of

Pension option to employees of Public sector Banks and Enhancement in gratuity Limits] the profits of the Bank would have been higher by Rs.26.64 crores..."

Further in Page 83 there is a mention about a provision of Rs.31 crores towards wage revision, representing 15% of average salary & allowances per annum as item No.12.

K. MOHANDAS RAO, SBM-VR 2001

Annual Report 2011-12Banking Codes and Standards Board of IndiaBCSBI at a glance2010-11 2011-12Members of BCSBI 110 115Banks admitted as members during the year20 6Applications in process for membership16 16Workshops / Conferences / seminars held / participated in 4 12Town Hall Meetings participated in--3Participation in Customer Awareness Programmes 3 12SLBCs addressed23 2Branches / processing centres visited to assess Code implementation1135 2083Credit Counselling cases handled283 212

Complaints received and dealt with573 484Meeting of the Deputy Governor with the Governing CouncilDr. K C Chakrabarty, Deputy Governor, Reserve Bank of India met the newly constituted Governing Council to share his expectations with them. Dr. Chakrabarty emphasized the need to enhance customer service in banks. Some of the key issues highlighted by the Deputy Governor at the meeting, that he felt needed to be addressed, were promotion of safe and secure electronic banking, non-obtention of one sided agreements by banks which may not provide protection to the customer, need to refrain from levying unreasonable charges for products and services, increased transparency, inclusion of lender’s liability in the Codes, selling of inappropriate products by banks, etc. The Deputy Governor mentioned that BCSBI could play an important role in promoting customer service by ensuring that fair and ethical practices are adopted by the banking industry when serving their customers. BCSBI has since taken up the issues raised by the Deputy Governor with a view to ensure fair treatment of consumers of banking services.Conference of Principal Code Compliance OfficersTo facilitate sharing of views and issues amongst member banks and BCSBI, a Conference of Principal Code Compliance Officers (PCCOs) of scheduled commercial banks was organized in February 2012. The Conference was inaugurated by Dr. K C Chakrabarty, Deputy Governor, Reserve Bank of India. Dr. Chakrabarty, in his keynote address shared his views and concerns

regarding the quality of customer care and service in the banking industry. He emphasised the importance of extending protection to the consumer of banking services by adopting fair and non-discriminatory practices when dealing with customers. The Chairman, BCSBI and Members of Governing Council present at the Conference interacted with the participants. Several issues raised during the discussions were debated and clarified. The issues raised 9Annual Report 2011-12Banking Codes and Standards Board of India10by PCCOs along with BCSBI’s comments have been placed on the BCSBI website for the guidance of all concerned.A separate Conference of PCCOs of member Regional Rural Banks (RRBs) and Urban Co-operative Banks (UCBs) was held in March 2012 for sharing views on Code implementation and discussing issues which are of particular relevance to RRBs and UCBs. Spreading Awareness of the CodesBCSBI has taken several measures to increase awareness of bank officials, their staff and customers about the provisions of the Codes so that these are implemented in true spirit. It has participated in the Town Hall meetings organised by RBI and propagated the role of BCSBI and rights of customers contained in the Codes. Apart from these, BCSBI officials have also addressed meetings of State Level Bankers’ Committee of West Bengal and Jammu & Kashmir in June and September 2011 respectively to highlight how banks can contribute

to the growth of MSEs through proper implementation of the MSE Code. BCSBI officials have also participated in the outreach programmes organized by Banking Ombudsmen at six centres and other on-location workshops and seminars.BCSBI has also stressed upon member banks the pro-active role the banks’ training system can play in spreading awareness of the Codes and the willingness of BCSBI to assist in conducting programmes by making available presentation material and faculty support when requested. BCSBI officials also participated in the seminars / meetings organized by Industry Associations / Trade bodies of Micro and Small Enterprises at Kolkata, Mumbai, Delhi and Bengaluru.As part of the campaign to increase awareness about the Codes, TV Ad on Doordarshan’s National News and certain regional channels and broadcast of radio jingle on the Vividh Bharati network of All India Radio were continued for two more quarters of April-June 2011 and October-December 2011. Posters in Marathi were also displayed on 400 buses of Maharashtra State Roadways Transport Corporation in 27 cities of Maharashtra State for two months.Visits by Delegations from AbroadA delegation from IMF-World Bank Financial Stability Assessment Programme (FSAP) Mission visited BCSBI in October 2011 to discuss matters relating to protection available to consumers of financial products in the country. The delegation was briefed about the role of BCSBI, important provisions of the Codes including key commitments of banks, grievance

redressal mechanism, etc. A delegation of senior officials from Bangladesh Bank also visited BCSBI in February 2012 to familiarize themselves about banking consumer protection system in vogue in India and BCSBI’s role.Annual Report 2011-12Banking Codes and Standards Board of IndiaPublication of BCSBI Newsletter – ‘Customer Matters’The newsletter ‘Customer Matters’ launched in April, 2009, continues to highlight contemporary banking issues and practices; initiatives by RBI in the field of customer service and exemplary decisions taken under the Banking Ombudsman Scheme and various Consumer Fora. All issues of our newsletter are available on our website www.bcsbi.org.in A soft copy of each issue is being forwarded to member banks to be placed on their intranet for easy access by all members of staff.Funds PositionAs per the funding arrangement agreed with Reserve Bank of India upto 2015-16, BCSBI would be utilizing its entire interest income towards meeting its expenditure and RBI has agreed to fund the expenditure gap. Accordingly, during the year, BCSBI has expended an amount of ` 104.36 lakh out of its interest income. Unspent interest income amounting to ` 48.84 lakh has been transferred to the Public Awareness Fund to be spent for the purpose during the next five years. Entire contribution made by the member banks in the form of

registration fees and membership fees has been credited to the Corpus as desired by them.As on March 31, 2012, there is an aggregate amount of ` 1690.31 lakh in the Corpus Fund and Public Awareness Fund. These funds have been invested in Government Securities (` 358.35 lakh) and term deposits with member banks (` 1331.96 lakh) in accordance with the approved Investment Policy.Way AheadA separate cell has been created in BCSBI to do research on global best practices on fair treatment of banking customers. It is proposed to undertake studies on practices adopted by banks in the field of levy of charges, selling of products appropriate to customers, safe and secure banking through electronic platforms and lender’s liability towards small borrowers on an on-going basis. While doing so, best practices both in India and abroad will be studied as also the consumer protection available elsewhere. BCSBI will also undertake branch visits / mystery shopping on select themes of customer interest based on Code provisions. Recognising the need to spread awareness of the Codes amongst staff of banks and customers, BCSBI will make increased efforts towards this end. BCSBI will participate in customer meets organized by member banks as also training programmes arranged for members of staff. Acknowledgements

BCSBI is thankful to Reserve Bank of India for their continued financial support and for providing us with opportunity to participate in Town Hall Meetings and Awareness Programmes of Banking Ombudsmen. BCSBI also wishes to thank IBA and all member banks for their support and cooperation. BCSBI wishes to place on record sincere thanks and appreciation to the members of the erstwhile Governing Council for their able guidance and valuable contributions to the BCSBI cause. Special thanks are due to Smt K J Udeshi, former Chairman for the role that she played in creating BCSBI and nurturing it during its formative years. 11Annual Report 2011-12Banking Codes and Standards Board of India12Sl. No.Name of the bankScheduled Commercial Banks1 AB Bank Ltd.2 Allahabad Bank3 Andhra Bank4 Axis Bank Ltd.5 Bank of America N.A.6 Bank of Baroda7 Bank of Ceylon8 Bank of India9 Bank of Maharashtra10 Bank of Nova Scotia11 Barclays Bank PLC12 BNP Paribas13 Canara Bank14 Central Bank of India15 Citibank N.A .16 City Union Bank Ltd.17 Commonwealth Bank of Australia

18 Corporation Bank19 Credit Agricole Corporate and Investment Bank20 DBS Bank Ltd.21 Dena Bank22 Deutsche Bank AG23 Development Credit Bank Ltd.24 ICICI Bank Ltd.25 IDBI Bank Ltd26 Indian Bank27 Indian Overseas Bank28 IndusInd Bank Ltd.29 ING Vysya Bank Ltd.30 JP Morgan Chase Bank N.A.31 Karnataka Bank Ltd.32 Krung Thai Bank PLC33 Kotak Mahindra Bank Ltd.34 Mashreq Bank psc35 Oman International Bank S.A.O.G36 Oriental Bank of Commerce37 Punjab National Bank 38 Shinhan Bank39 Societe Generale40 Sonali BankSl. NoName of the bankScheduled Commercial Banks41 Standard Chartered Bank42 State Bank of Bikaner and Jaipur43 State Bank of Hyderabad44 State Bank of India45 State Bank of Mauritius46 State Bank of Mysore47 State Bank of Patiala48 State Bank of Travancore49 Syndicate Bank50 The Catholic Syrian Bank Ltd.51 The Dhanlaxmi Bank Ltd.52 The Federal Bank Ltd.53 The HDFC Bank Ltd.54 The Hongkong and Shanghai Banking

Corporation Ltd.55 The Jammu & Kashmir Bank Ltd56 The Karur Vysya Bank Ltd.57 The Laxmi Vilas Bank Ltd.58 The Nainital Bank Ltd.59 The Ratnakar Bank Ltd.60 The Royal Bank of Scotland61 The South Indian Bank Ltd62 Tamilnad Mercantile Bank Ltd.63 UCO Bank64 Union Bank65 United Bank66 Vijaya Bank67 Yes Bank Ltd.Scheduled Urban Co-operative Banks1 Bharat Cooperative Bank (Mumbai) Ltd.2 Citizen Credit Cooperative Bank Ltd.3 Cosmos Co-operative Urban Bank Ltd.4 Karad Urban Co-operative Bank Ltd.5 Nagar Urban Co-operative Bank Ltd.6 Nagpur Nagrik Sahakari Bank Ltd.7 Nutan Nagrik Sahakari Bank Ltd.8 Punjab and Maharashtra Co-operative Bank Ltd.9 Saraswat Co-operative Bank Ltd.10 Shamrao Vittal Cooperative Bank Ltd.11 Thane Bharat Sahakari Bank Ltd.Annex IBCSBI membersAnnual Report 2011-12Banking Codes and Standards Board of India13Annex IBCSBI members (Contd.)Sl. No.Name of the bankRegional Rural Banks1 Allahabad UP Gramin Bank2 Andhra Pragathi Grameena Bank

3 Aryavart Gramin Bank 4 Baroda Gujarat Gramin Bank5 Baroda Rajasthan Gramin Bank6 Baroda Uttar Pradesh Gramin Bank7 Chaitanya Godavari Grameena Bank8 Deccan Grameena Bank9 Hadoti Kshetriya Gramin Bank10 Haryana Gramin Bank11 Himachal Gramin Bank 12 Jaipur Thar Gramin Bank13 Jammu & Kashmir Gramin Bank14 Jhabua- Dhar Kshetriya Gramin Bank15 Karnataka Vikas Grameena Bank16 Kashi Gomti Samyut Gramin Bank17 Krishna Grameena Bank18 Madhya Bharat Gramin Bank19 Maharahstra Gramin BankSl. No.Name of the bankRegional Rural Banks20 Meghalaya Rural Bank21 Nainital-Almora Kshetriya Gramin Bank22 Pallavan Grama Bank23 Pandyan Grama Bank24 Prathama Bank25 Puduvai Bharathiar Grama Bank 26 Purvanchal Gramin Bank27 Rajasthan Gramin Bank28 Rewa Sidhi Gramin Bank29 Rushikulya Gramya Bank30 Saptgiri Grameena Bank31 Saurashtra Gramin Bank32 Sarva UP Gramin Bank33 Sharda Gramin Bank34 Shreyas Gramin Bank35 Surguja Kshetriya Gramin Bank 36 Uttar Bihar Gramin Bank 37 Wainganga Krishna Gramin Bank Annual Report 2011-12Banking Codes and Standards Board of India

14Annex IIFindings of the Survey of branches conducted during December 2011-February 2012 to as-sess the level of compliance with the Codes of Bank’s Commitment to Customers and MSEsSelect findings of SurveyPercentage of Branches responding “YES”In cognito verificationDoes the branch exchange soiled notes?Does the branch start operations at the appointed time?Whether all customers who enter the branch before the close of business hours are attended to?829499Through verification / interaction with branch officialsDisplay of information about availability of nomination facility in deposit accounts72Availability of Folder / Booklet containing detailed information54Display of name and address of the Regional / Zonal Manager whom the customer may approach if his grievance is not redressed at the branch75Time norms for common transactions74Whether the charges applicable to the deposit products are explained?96Whether Form 15 G / H obtained from customers exempt from TDS on FD Interest94Intimating the customer before an account is classified as inoperative27Recording fact of nomination in pass book73Providing address of the branch in the passbook

92Display of cut-off time for deposit of cheques in drop box for same day clearing 47Whether the branch records complaints received?73Whether the complaints are redressed within 30 days?84Whether the loan sanction letter contains all terms and conditions?95Whether the bank gives written receipt for the documents taken as security / collateral?61Lending to MSEs:Whether simplified loan application form is used?74Are MSE loan applications disposed of within the prescribed time frame?88Whether the loans are generally disbursed within the prescribed days?87Annual Report 2011-12Banking Codes and Standards Board of India15Annex-II (Contd.)Annual Report 2011-12Banking Codes and Standards Board of IndiaAnnex-II (Contd.)16Annual Report 2011-12Banking Codes and Standards Board of India17Annex II (Contd.)City-wise and bank group-wise break up of sample of branches & hubs visited for the surveyCentresBank GroupsCity-wise total of branches /

hubs visitedSBI & AssociatesOther public sector banksPrivate Sector banksForeign banksMumbai408064 11195Delhi146552 6137Kolkata317041 7149Chennai336643 7149Agartala5123 -20Agra6168 -30Ahmedabad

163530 485Amritsar8147 -29Aurangabad4179 -30Bengaluru194936 4108Bhopal81410 -32Bhubaneswar4206 -30Chandigarh131610 140Coimbatore7176 -30Cuttack

6195 -30Dehradun383 -14Faridabad7167 -30Guwahati4215 -30Gurgaon7149 131Hubli7167 -30Hyderabad243623 487Indore5197 -31Jabalpur

7166 -29Jaipur101910 140Jalandhar6186 -30Kanpur7176 -30Kochi9147 -30Lucknow6159 -30Ludhiana11129 -32Madurai8166 -30Mangalore

6176 -29Mysore5178 -30Nagpur5205 -30Annual Report 2011-12Banking Codes and Standards Board of IndiaAnnex II (Contd.) City-wise and bank group-wise break up of sample of branches & hubs visited for the surveyCentresBank GroupsCity-wise total of branches / hubs visitedSBI & AssociatesOther public sector banksPrivate Sector banksForeign banksPune7275 241Raipur

5119 -25Rajkot6186 -30Ranchi5114 -20Shillong4115 -20Surat4215 -30Thiruvananthapuram8168 -32Udaipur8175 -30Vadodara3216 -30Vijayawada

9183 -30Visakhapatnam8195 -32Total (47 Cities)4281061546 48 2083Annex IIIProfile of ComplaintsSr. No.Nature of Complaints2010-11 2011-121 Deposit Accounts100 1122 Credit/Debit Cards133 803 Pension-34 Tariff Schedule & Service Charges3175 Cheque Collection/Clearing Cycle2186 Foreign Exchange Service117 ATM Related1638 Compensation Policy-

-9 Do-not-call (unsolicited Telemarketing)--10 Loans & Advances – Collection of Dues- Security Repossession111 6411 Grievance Redressal Mechanism7112 Miscellaneous153 205Total573 48418

Statement of Accounts for the year 2011-12Annual Report 2011-12Banking Codes and Standards Board of IndiaLOONKER & CO. 8-Dhun Mahal, Garden RoadChartered Accountants Colaba, Mumbai 400 039Tel: 2282 5580; 2285 6740Mobile: 93246 14750.20Auditors’ ReportWe have audited the Balance Sheet of Banking Codes and Standards Board of India as at 31st March 2012 and the Income and Expenditure account for the year ended on that date an

-nexed thereto. These financial statements are the responsibility of the trustees of the Board. Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presen-tation. We believe that our audit provides a reasonable basis for our opinion.We report that:i) We have obtained all the information and explanations, which to the best of our knowl-edge and belief were necessary for the purpose of the audit.ii) In our opinion, proper books of account as required by the law have been kept by the Trust so far as it appears from our examination of such books.iii) The Balance Sheet and Income & Expenditure Account dealt with by this report are in agreement with the books of account.iv)

In our opinion and to the best of our information and according to the explanations given to us, the said accounts give a true and fair view in conformity with the accounting principles generally accepted in India:-- in the case of Balance Sheet of the state of affairs of the above named trust as at 31st March 2012 and - in the case of Income & Expenditure Account of the trust for the accounting year ended on that date.For M/s. Loonker & CoChartered AccountantsSd./- (S. C. Loonker) Place: Mumbai Partner Date: May 8, 2012 (Membership No.10135)Annual Report 2011-12Banking Codes and Standards Board of IndiaNotes on Accounts - Schedule A As per our report of even dateSd/-(A C Mahajan) M/s.Loonker & Co. Chairman Chartered AccountantsSd/- Sd/- (N Raja) Partner Chief Executive Officer AuditorsBanking Codes and Standards Board of India Place: Mumbai Place: MumbaiDate: May 8, 2012 Date: May 8, 2012BANKING CODES AND STANDARDS BOARD OF INDIABalance Sheet as on March 31, 2012

21As on March 31, 2011PROPERTY & ASSETSAs on March 31,2012( As per Schedule VIII of Bombay Public Trusts Act, 1950) (Amount in Rupees)As onMarch 31, 2012As onMarch 31, 2011FUNDS AND LIABILITESTrust Funds or Corpus116,092,000 Balance as per last Balance Sheet 116,092,000Add: Contribution received during the year 35,098,000 151,190,000Other earmarked funds— Public Awareness Fund 25,397,721 Balance as per last Balance Sheet 25,397,721Less: Transferred to Income and 500,000 Exp. AccountAdd: Transferred from Income & 4,884,291 29,782,012 Exp. A/c 229,390 For advances from RBI 29,836141,719,111 Total181,001,848 — Immovable properties — Investments -35,835,312 Govt.securities (cost)-Annex-I 35,835,312— Furniture and fixtures —— Loans (Secured or unsecured) —Advances -To others- 180,867 - Tax Deducted at Source 141,7108,770 - Premium on GOI Securities 7,412 149,122Income Outstanding -6,075,034 - Interest 11,078,964Cash and Bank Balances-99,618,818 - In current account or fixed 133,938,192 deposit account- Annex II

310 - Stamps 258 133,938,450141,719,111 Total 181,001,848 Annual Report 2011-12Banking Codes and Standards Board of India( As per Part III - Schedule VIII of Bombay Public Trusts Act, 1950) (Amount in Rupees)Date and year Kind of investments Full description such as name of the Face Value Cost Rate of Remarksof preparationcompany, distinctive Nos. of shares interest and certificates, type of shares, etc. borne by Date of redemption or repaymentinvestments1 234 5 6 7At the (i) Shares — beginning of (ii) Bonds and Debentures— the year (as on (iii) Deposits —April 1, 2011) (iv) Others —(v) Public Securities a) 7.37% GOI Securities 2014 14,500,000 14,118,650 7.37%b) 8.07% GOI Securities 2017 1,480,000 1,480,000 8.07%c) 7.49% GOI Securities 2017 12,000,000 11,470,414 7.49%d) 7.99% GOI Securities 2017 2,800,000 2,800,000 7.99%e) 7.59% GOI Securities 2016 2,500,000 2,466,248 7.59%f) 8.24% GOI Securities 2018 3,500,000 3,500,000 8.24%36,780,000 35,835,312Increase during the year (2011-12)—Decrease during the year (2011-12) —

Total at the end of the year (as on March 31, 2012)36,780,000 35,835,312 BANKING CODES AND STANDARDS BOARD OF INDIA Schedule of Investments belonging to the Trust as on March 31, 2012Annex-IAnnex-IIAs on Bank Accounts As on March 31, 2011March 31, 2012In Savings Account 2,115,012 - ICICI Bank 729,017 In Current Account 212,489 - Central Bank of India 12,987In Fixed Deposits 2,909,213 - Karnataka Bank - 2,.993,916 - Karur Vysya Bank 3,252,533 6,522,051 - Yes Bank 3,716,327 20,999,598 - City Union Bank 26,109,509 9,361,151 - Laxmi Vilas Bank 19,876,475 19,504,928 - State Bank of Mysore 27,191,555 2,595,000 - UCO Bank - 2,990,000 - Vijaya Bank - 20,l43,082 - State Bank of Tranvancore 43,777,411 9,272,378 - Central Bank of India 9,272,378 [All accounts in the name of Banking Codes and Standards Board of India]99,618,818133,938,192BANKING CODES AND STANDARDS BOARD OF INDIA

Annexure to Balance Sheet as on March 31, 2012(Amount in Rupees)As per our report of even dateSd/-(A C Mahajan) M/s. Loonker & Co. Chairman Chartered AccountantsSd/- Sd/-(N Raja) PartnerChief Executive Officer AuditorsBanking Codes and Standards Board of India Place: Mumbai Place: MumbaiDate: May 8, 2012 Date: May 8, 201222Annual Report 2011-12Banking Codes and Standards Board of IndiaAs per our report of even dateSd/-(A C Mahajan) M/s. Loonker & Co. Chairman Chartered AccountantsSd/- Sd/-(N Raja) PartnerChief Executive Officer AuditorsBanking Codes and Standards Board of India Place: Mumbai Place: MumbaiDate: May 8, 2012 Date: May 8, 2012BANKING CODES AND STANDARDS BOARD OF INDIAIncome and Expenditure Account for the year ended March 31, 2012[As per Schedule IX of Bombay Public Trusts Act, 1950](Amount in Rupees)Year ended March 31, 2011EXPENDITUREYear endedMarch 31, 2012—

To expenditure in respect of properties— To establishment expenses —— To remuneration to trustees —— Legal expenses —— Audit fees —— To contribution and fees — — To amount written off 1,358 - Preimum on Govt. Sec. 1,358 — To Miscellaneous expenses 440— To Depreciation —To Amounts transferred to Reserve 9,455,656 - Public Awareness Fund 4,884,291 — To Expenditure on objects of the Trust 10,436,118—To surplus carried over to Balance Sheet —9,457,014 Total 15,322,207Year endedMarch 31, 2011Year endedMarch 31, 2012— By Rent —By Interest2,788,756 - On securities 2,788,756 6,668,258 - On bank account 12,028,331 — - On income tax refund 5,120 14,822,207 — By Dividend —— By Donations in cash or kind —— By Grants—— By Transfer from Reserve-Public 500,000 Awareness Fund — By Deficit carried over to Balance Sheet —

9,457,014 Total 15,322,207 INCOME23