Annual Report Analysis Of IndusInd Bank

Annual Report Analysis Of

BALANCE SHEET AS AT MARCH 31, 2009

SCHEDULE As at 31.03.09CAPITAL AND LIABILITIES

Capital I 3,551,921 Employee Stock Options Outstanding XVIII (9) 11,510 Reserves and Surplus II 13,080,511

Deposits III 221,102,527 Borrowings IV 18,564,553 Other Liabilities and Provisions V 19,835,803

TOTAL 276,146,825

ASSETS

VI 11,907,898

VII 7,329,049

Investments VIII 80,834,055 Advances IX 157,706,359 Fixed Assets X 6,231,934

Other Assets XI 12,137,530 TOTAL 276,146,825

Contingent Liabilities XII 442,991,733 Bills for Collection 2937,73,35

Principal Accounting Policies XVIINotes on Accounts XVIII

Cash and Balances with Reserve Bank of IndiaBalances with Banks and Money at Call and Short Notice

BALANCE SHEET AS AT MARCH 31, 2009 Common Size Balance SheetRupees in '000sAs at 31.03.08As at 31.03.0As at 31.03.08

3,200,000 1.2862% 1.3756% 5,068 0.0042% 0.0022% 10,292,066 4.7368% 4.4244%

190,374,227 80.0670% 81.8396% 10,954,346 6.7227% 4.7091% 17,793,112 7.1831% 7.6490%

232,618,819 100.0000% 100.0000%

15,262,614 4.3122% 6.5612%

6,517,718 2.6540% 2.8019%

66,296,961 29.2721% 28.5003% 127,953,076 57.1096% 55.0055% 6,251,484 2.2567% 2.6874%

10,336,966 4.3953% 4.4437% 232,618,819 100.0000% 100.0000%

309,819,307 1761,20,60

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009

SCHEDULE

I. INCOME Interest Earned XIII Other Income XIV

TOTALII. EXPENDITURE Interest Expended XV Operating Expenses XVIProvisions and Contingencies

TOTAL

III. PROFIT Profit brought forwardAMOUNT AVAILABLE FOR APPROPRIATION TOTALIV. APPROPRIATIONS Transfer to a) Statutory b) Capital c) Investment Reserve Account d) Dividend e) Corporate

Balance transferred to Balance SheetTOTAL

Earnings per share (basic)(Rupees) XVIII(10.6)Earnings per share (diluted)(Rupees) XVIII(10.6)Principal Accounting Policies XVIINotes on Accounts XVIII

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009 Common Size P&L SheetRupees in '000s

Year ended Year ended Year endedYear ended31.03.09 31.03.08 31.03.09 31.03.08

23,094,744 18,806,609 83.50% 86.34% 4,562,535 2,975,777 16.50% 13.66% 27,657,279 21,782,386 100.00% 100.00%

18,504,414 15,798,597 66.91% 72.53% 5,470,341 4,021,928 19.78% 18.46% 2,199,136 1,211,323 7.95% 5.56% 26,173,891 21,031,848 94.64% 96.55%

1,483,388 750,538 5.36% 3.45% 2,429,907 2,113,912 8.79% 9.70% 3,913,295 2,864,450 14.15% 13.15%

370,847 187,635 1.34% 0.86% 534,029 22,413 1.93% 0.10% 15,323 – 0.06% 447,115 191,885 1.62% 0.88% 75,987 32,610 0.27% 0.15% 1,443,301 434,543 5.22% 1.99% 2,469,994 869,086 8.93% 3.99% 3,913,295 2,864,450 14.15% 13.15% 4.28 2.35 4.27 2.35

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2009

A. Cash Flow from Operating ActivitiesNet Profit after taxesAdjustments for non-cash charges :Depreciation on Fixed AssetsProvision on InvestmentsTax Provisions (Income Tax/ Wealth Tax/ Deferred Tax)Employees Stock Option ExpensesLoan loss and Other ProvisionsInterest on Tier II / Upper Tier II bonds (treated separately)(Profit) / Loss on sale of Fixed assetsOperating Profit before Working Capital changesAdjustments for :Increase in trade and Other Receivables (Advances and Other Assets)Increase in Inventories (Investments)Increase in Trade Payables (Deposits, Borrowings and Other Liabilities)Cash generated from OperationsDirect taxes paidNet Cash from Operating Activities

B. Cash Flow from Investing ActivitiesPurchase of Fixed AssetsSale of Fixed Assets (Proceeds)Net Cash used in Investing Activities

C. Cash Flow from Financing ActivitiesProceeds from GDR issue – Capital – PremiumDividends paidProceeds from Issue of Unsecured Non-Convertible Redeemable Subordinated Tier II BondsProceeds from Unsecured Non-convertible Redeemable Non-Cumulative Subordinated Upper Tier II BondsRedemption of Sub-ordinated Tier II capitalInterest on Tier II / Upper Tier II bondsNet Cash used in Financing ActivitiesNet increase in Cash and Cash EquivalentsCash and Cash Equivalents as on the first day of the yearCash and Cash Equivalents as on the last day of the year

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2009

(Rs. in crores)For the year ended 31.3.2009For the year ended 31.3.2008

148.34 75.05

44.17 40.16(3.09) 3.6379.15 39.23

0.64 0.51143.85 37.29

77.27 76.582.6 (14.7)

492.93 257.75

(3311.17) 1769.75(1450.62) 741.67

3946.23 1991.82(322.63) 261.85

67.22 65.26(389.85) 327.11

51.05 56.982.06 15.75

48.99 41.23

35.19 –187 –

24.92 22.45

100 50

– –35.5 –

77.27 76.58184.5 49.03

254.34 417.372178.03 2595.41923.69 2178.03

KEY FINANCIAL RATIOS

Productivity Ratios Formula 2008-09 2007-08 Analysis

Profit per employee (Rs Thousands) Net profit/ Number of employees 349.0 261.6

Assets Per employee (Rs Thousands)Avg Assets/ Number of full tyme employees 59,840.7

440.2 424.9

Loan Per Employee (Rs Thousands) Loans/ Total number of employees 37,098.65 44,598.49

Net income/ Number of employees 348.95 261.60

Profitability ratios Formula 2008-09 2007-08

Return On Assets (ROA) Net income/ Total assets 0.58%

Return on Equity Net income / Total equity capital 41.76%

Burden Non interest expense - Non interest income 3,106,942 2,257,474

Net non interest margin Burden/ Avg total Assets 1.22%

The profit per employee has up by 50% which is a very good sign for the bank.There is also increase in the net profit per employee The bank's net profit hasn’t been effected which means the bank is operating efficiently now.

This shows that the assets per employee is over 410 crores which is still very high. For a bank the lesser the asset per employee ratio the better for the bank.

Average Personel Expenses (Rs Thousands) Personel Expenses/ Number of full time

employees

Here we can see that the average personel expense has increased by over Rs.27 thousand per employee. This could be because of the increase in the salaries and the downsize from the previous year.With a meagre increase in the expense per employee the bank has achieved almost double the average profit per employee.

Net Income per employee (Rs Thousands)

The profit per employee has gone up almost twice which is a very good sign for the bank. The bank has downsized 2791 to 2744 in 2008. The bank's net profit hasn’t been effected which means the bank is operating efficiently now.

There has been an increase in the return on assets from 2007 to 2008. This increase shows that the efficiency of the bank to utilize its assets has gone up from 2007-3008. It shows that for every every 100 rupees of assets the banks able to earn 65 paise.

The return on equity has gone up from 2007 to 2008 . This ratio gives the return on equity employed. This shows that in 2008 for every rupee of capital the return is about 11 paise.

Efficiency Ratio 1 1

Average Cost of Deposits 8.22% 7.84%

Average Yield on Advances 13.23% 11.76%

Cost- Income Ratio 59.77% 67.21%

EPS (in Rs.) 4.28 2.35

Bank Performance Model (Rs Thousands)

INCOMEReturn to shareholders 27,657,279

ROE = NI / TE41.76%

Return to the BankROA = NI / TA

0.58%

Non Interest Expense/( Net Interest income+ Non interest income)

EXPENSES 26,173,891

Degree of levarageEM =1 / (TE / TA)

77.75

Analysis

The profit per employee has up by 50% which is a very good sign for the bank.There is also increase in the net profit per employee The bank's net profit hasn’t been effected which means the bank is operating efficiently now.

This shows that the assets per employee is over 410 crores which is still very high. For a bank the lesser the asset per employee ratio the better for the bank.

Here we can see that the average personel expense has increased by over Rs.27 thousand per employee. This could be because of the increase in the salaries and the downsize from the previous year.With a meagre increase in the expense per employee the bank has achieved almost double the average profit per employee.

The profit per employee has gone up almost twice which is a very good sign for the bank. The bank has downsized 2791 to 2744 in 2008. The bank's net profit hasn’t been effected which means the bank is operating efficiently now.

There has been an increase in the return on assets from 2007 to 2008. This increase shows that the efficiency of the bank to utilize its assets has gone up from 2007-3008. It shows that for every every 100 rupees of assets the banks able to earn 65 paise.

The return on equity has gone up from 2007 to 2008 . This ratio gives the return on equity employed. This shows that in 2008 for every rupee of capital the return is about 11 paise.

Interest 23,094,744

Non Interest 4,562,535

Interest expended 18,504,414

Operating Expenses

5,470,341

Non Interest Expended 7,669,477

Provisions and Contingencies 2,199,136

Composition Of Capital Tier 1 and Tier 2 as on 31-03-2009

Tier I CapitalPaid up Share CapitalReservesInnovative InstrumentsOther Capital InstrumentsGross Tier I CapitalDeductionsInvestments in Subsidiaries and AssociatesCredit enhancements under SecuritisationNet Tier I CapitalTier II CapitalUpper Tier II BondsSub-ordinated debtsGeneral Provisions / IRA and Revaluation ReservesGross Tier II CapitalDeductionsInvestments in Subsidiaries and AssociatesCredit enhancements under SecuritisationNet Tier II CapitalTotal eligible capitalDebt Capital instruments eligible for inclusion in Upper Tier 2 CapitalTotal amount outstandingOf which amount raised during the current yearAmount eligible to be reckoned as Capital fundsSubordinated debt eligible for inclusion in Lower Tier 2 CapitalTotal amount outstandingOf which amount raised during the current yearAmount eligible to be reckoned as Capital fundsTier I Capital FundsTier II Capital FundsTotal Eligible Capital Funds

Capital AdequacyCapital Requirements for Credit Risk,Market Risk, and operational Risk as on march 31,2009

Risk TypeCapital requirements for Credit RiskPortfolio Subject to Standardised approachSecuritisation exposuresCapital requirements for Market RiskStandardised Duration ApproachInterest Rate RiskForeign Exchange Risk (including gold)Equity RiskCapital requirements for Operational RiskBasic Indicator ApproachTotal Capital requirements at 9%Total Capital FundsCRAR

Composition Of Capital Tier 1 and Tier 2 as on 31-03-2009

355.191,072.04

--

1,427.23

0.550.45

1,426.23

308.90439.10166.69914.69

0.550.45

913.692,339.92

308.90308.90

-308.90

651.60100.00439.10

1,426.23913.69

2,339.92

Capital AdequacyCapital Requirements for Credit Risk,Market Risk, and operational Risk as on march 31,2009

Rs. in crores1,548.441,547.99

0.4530.98

15.029.006.96

98.5398.53

1,677.952,339.9212.55%

Movements in NPAs 2008-09 2007-08

Gross NPAs As at April 1 392.31 342.73Additions during the year 219.00 155.49Deletions during the year 356.29 105.91As at March 31 255.02 392.31 Provisions As at April 1 101.29 68.98Add: Provisions made during the year 137.96 53.04Less: Write-off, write back of excess prov 163.36 20.73As at March 31 75.89 101.29Net NPAs as at March 31 179.13 291.02

2008-09 2007-08

1) Net NPAs to Total Assets 6.49% 12.51%

2) Net NPAs to Net Advances 11.36% 22.74%

3) Total Investments to Total Assets 29.27% 28.50%

4) Percentage Change in Net NPAs 38.45%

It is given by the following formula:

ASSET QUALITY

The Net NPAs are measured as a percentage of Total Assets

In this ratio,Net NPAs are measured as a percentage of Net Advances.

arrived at by dividing total investments by total assets.

% Change in Net NPAs = (NNPAs(Opening) – NNPAs(Closing)/ NNPAs (Opening).

Net NPA to total assets is reducing which is a good sign.

Net advances have increased and net NPA's have decreased resulting in the reduction in Net NPA's to Net Advances

This ratio is used as a tool to measure the percentage of total assets locked up in investments, which by conventional definition, doesn’t form part of the core income of a bank.

This measure gives the movement in Net NPAs in relation to Net NPAs in the previous year. The lower the percentage change, the better the quality of

assets .

in 000's2008-09 2007-08

Gross NPAs 255020.00 392310Net NPA 179130 291020Net Advances 157,706,359 127,953,076 Total Investments 80,834,055 66,296,961 Total Assets 276,146,825 232,618,819

A non performing asset (NPA) is a loan or an advance where;i. interest and/ or instalment of principal remain overdue for a period ofmore than 90 days in respect of a term loan,

SSET QUALITY

Net NPA to total assets is reducing which is a good sign.

Net advances have increased and net NPA's have decreased resulting in the reduction in Net NPA's to Net Advances

This ratio is used as a tool to measure the percentage of total assets locked up in investments, which by conventional definition, doesn’t form part of the core income of a bank.

This measure gives the movement in Net NPAs in relation to Net NPAs in the previous year. The lower the percentage change, the better the quality of

assets .

A non performing asset (NPA) is a loan or an advance where;i. interest and/ or instalment of principal remain overdue for a period ofmore than 90 days in respect of a term loan,

In 000's

2008-09Total Advances 157,706,359 Deposits 221,102,527 Profit 1,483,388 Business tot adv+tot dep 378,808,886 Net Worth 16,632,432 No of employees 4251

1) Total Advance to Deposits 71.33%It is arrived at by dividing total asset by total deposits

2) Profit Per Employee 348.95

It is arrived at by dividing the net profit earned by the bank by total number of branches.

3) Business Per Employee 89110.54

It is arrived at by dividing the total business by the total number of employees.

4) Return on Net Worth 8.92%This ratio is calculated by dividing PAT by the net worth

Management

2007-08 127,953,076 190,374,227 750,538 318,327,303 13,492,066 2,869

67.21%

261.60

110954.10

5.56%

This ratio measures the efficiency of the management in converting the deposits available with the bank (excluding other funds like equity capital, etc.) into advances. Total Deposits include demand deposits, savings deposits, term deposits and deposits of banks. Total Advances also include the receivables.

This measures the efficiency of the employee.The higher the ratio, the higher the efficiency of management

This tool measures the efficiency of all the employees of a bank in generating business for the bank. By business we mean the sum of Total Advances and Total Deposits in a particular year.

This ratio measures the returns obtained by the shareholders. The higher the ratio the better for share holders.

This ratio measures the efficiency of the management in converting the deposits available with the bank (excluding other funds like equity capital, etc.) into advances. Total Deposits include demand deposits, savings deposits, term deposits and deposits of banks. Total Advances also include the receivables.

This measures the efficiency of the employee.The higher the ratio, the higher the efficiency of management

This tool measures the efficiency of all the employees of a bank in generating business for the bank. By business we mean the sum of Total Advances and Total Deposits in a particular year.

This ratio measures the returns obtained by the shareholders. The higher the ratio the better for share holders.

Operating Profit by Avearge Working Funds

This is arrived at by dividing the operating profit by average working funds. Working funds is the daily average of the total assets during the year

INTEREST EARNED 2008-2009 2007-08I. Interest/discount on advances/bills 17933112 14253294II. Income from investments 4832401 4034701III. Interest on balance with RBI and other inter-bank fund 157727 219163IV. Others 171504 299451

Total 23094744 18806609

INTEREST EXPENDED I. Interest on Deposits 15759694 14011544II. Interest on RBI/Inter-bank borrowings 1199696 558352III. Other interest* 1545024 1228701

Total 18504414 15798597

PROVISIONS AND CONTINGENCIES 2,199,136 1,211,323

Total Assets 276,146,825 ###Average Working Funds 254382822

Operating profit 1,229,773

Operating Profit/Avg Working Funds 0.48%

Percentage Growth in Net Profit

It is the percentage change in net profit from last year.

I I I . PROFIT 2008-2009 2007-08Net Profit for the year 1,483,388 750,538

% Growth 97.64

Spread

EARNINGS QUALITY

It is an important measure of a bank’s core income (income from lending operations). It is the difference between the interest income and interest expended as a percentage of Total Assets. Interest income includes dividend income. Interest expended includes interest paid on deposits, loans from RBI, and other short-term and long-term loans.

Difference in Interest earned and interest expended:4590330 3008012

Total Assets 276,146,825 ###

Difference/Total Assets(spreads) 1.66 1.29

Net Profit/Average Assets

ASSETS 2008-2009 2007-08Total Assets 276,146,825 ###

Avg Assets 254382822

I I I . PROFIT Net Profit for the year 1,483,388 750,538

Net Profit/Average Assets 0.5831321425

Interest Income/Total Income

INTEREST INCOME 2008-2009 2007-08

I. Interest/discount on advances/bills 17933112 14253294III. Interest on balance with RBI and other inter-bank fund 157727 219163IV. Others 171504 299451

Total 18262343 14771908

INCOME Interest earned 42898681 33153253Other income 5813474 4468860

Total 48712155 37622113

Remarks: The larger the spread, the favourale it is as the numerator reflects net interest income.

This ratio measures return on assets employed or the efficiency in utilization of the assets. It is arrived at by dividing the net profit by average assets, which is the average of total assets in the current year and previous year.

This ratio measures the income from lending operations as a percentage of the total income generated by the bank in a year. Interest income includes income on advances, interest on deposits with RBI, and dividend income.

Interest Income/ Total Income 0.374903204 0.392639

Non-Interest Income/Total Income

NON-INTEREST INCOME 2008-2009 2007-08II. Income from investments 4832401 4034701Other Income 5813474 4468860

Total 10645875 8503561

INCOME Interest earned 23,094,744 ###Other income 4,562,535 2,975,777

Total 27657279 21782386

Non-Interest Income/Total Income 0.384921272 0.390387

This measures the income from operations other than lending as a percentage of total income. Non-interest income is the interest income earned by the banks excluding income on advances and deposits with RBI.

This is arrived at by dividing the operating profit by average working funds. Working funds is the daily average of the total assets during the year

It is an important measure of a bank’s core income (income from lending operations). It is the difference between the interest income and interest expended as a percentage of Total Assets. Interest income includes dividend income. Interest expended includes interest paid on

This ratio measures return on assets employed or the efficiency in utilization of the assets. It is arrived at by dividing the net profit by average assets, which is the average of total assets in the current year and previous year.

This ratio measures the income from lending operations as a percentage of the total income generated by the bank in a year. Interest income includes income on advances, interest on deposits with RBI, and dividend income.

This measures the income from operations other than lending as a percentage of total income. Non-interest income is the interest income earned

CASH AND BALANCE WITH RESERVE BANK OF INDIA 2008-2009 2007-08I. Cash in hand (including foreign currency notes) 1,418,778 1,080,779 II. Balances with Reserve Bank of India (a) In current accounts 10,489,120 14,181,835 (b) In other accounts - - Total 11907898 15262614

BALANCES WITH BANKS AND MONEYAT CALL AND SHORT NOTICE I . In India (i) Balances with Banks : (a) In current accounts 2,270,562 3,175,219 (b) In other deposit accounts 3,833,010 2,167,846 Total 6103572 5343065(ii) Money at call and short notice :(a) With banks 963,680 280,840 (b) With Other Institutions – 674,016 Total 963680 954856II. Outside India (i) In current accounts 261,797 219,797 ii) IN OTHER DEPOSIT ACCOUNTS – 674,016 (iii) Money at call and short notice 963,680 280,840 Total 1225477 1174653Total 8292729 7472574

TOTAL ASSETS ### ###LIQUID ASSETS 14097055 17392123G-SECURITIES 62,943,591 54,357,127 APPROVED SECURITIES 37,531 37,618 DEMAND DEPOSITS 29,549,653 18,018,961 TOTAL DEPOSITS ### ###

RATIOS

LIQUID ASSETS/TOTAL ASSETS 5.10% 7.48%GOVERNMENT SECURITIES/TOTAL ASSETS 22.79% 23.37%APPROVED SECURITIES/TOTAL ASSETS 0.01% 0.02%LIQUID ASSET/TOTAL DEPOSIT 6.38% 9.14%

LIQUIDITY

SCHEDULES

SCHEDULE - I CAPITALAuthorised Capital50,00,00,000 (Previous year 40,00,00,000) equity shares of Rs.10/- each

Issued, Subscribed and Called Up Capital35,50,00,000 (Previous year 31,98,07,936) equity shares of Rs.10/- each

Paid up Capital35,50,00,000 (Previous year 31,98,07,936) equity shares of Rs.10/- eachAdd : Forfeited 3,84,200 (Previous year 3,84,200) equity shares of Rs.10/- each

TOTAL

SCHEDULE - II RESERVES AND SURPLUS1 Statutory Reserve Opening balanceAdditions during the year

2 Capital ReserveOpening balanceAdditions during the year

3 Share Premium Account Opening balanceAdditions during the year

4 General Reserve Opening balance

5 Investment Allowance Reserve Opening balance

6 Investment Reserve Account Opening BalanceAdditions during the year

7 Balance in Profi t & Loss Account8 Revaluation Reserve Opening balanceAddition during the yearDeduction during the year

TOTAL (1-8)

On June 24, 2008, Bank issued 3,51,92,064 equity shares of Rs.10/- in the form of Global Depository Receipts each representing one share at a price of US $ 1.47 perGDR. Accordingly as at March 31, 2009, the paid-up share capital and share premium account under reserves of the Bank stand increased by Rs.35,19,21 and Rs.186,99,83

SCHEDULESRupees in '000s

As at 31.03.0As at 31.03.08

5000000 4000000

3550000 3198079

3550000 31980791921 1921

3551921 3200000

988084 800449370847 1876351358931 988084

322737 300324534029 22413856766 322737

4129639 41296391869983 – 5999622 4129639

13557 1355713557 13557

10000 1000010000 10000

––15323 – 15323 –2469994 2429907

2398142 –– 240779841824 96562356318 239814213080511 10292066

SCHEDULES

As at 31.03.0 SCHEDULE - III DEPOSITS A 1 Demand Deposits i) From Banks 402,502 ii) From Others 29,147,151 2 Savings Bank Deposits 12,999,356 3 Term Deposits i) From Banks 23,782,193 ii) From Others 154,771,325

TOTAL (1, 2 & 3) ### B Deposits of Branches 1 In India 221,102,527 2 Outside India

TOTAL ###

SCHEDULE - IV BORROWINGS 1 Borrowings in India i) Reserve Bank of India 2,000,000 ii) Other Banks 590,931 iii) Other Institutions and Agencies 8,467,062 2 Borrowings outside India 7,506,560

TOTAL (1 & 2) 18,564,553 Secured borrowings included in 1 & 2 above –

SCHEDULE - V OTHER LIABILITIES AND PROVISIONS 1 Inter-office Adjustments (Net) 136,544 2 Bills Payable 2,749,664 3 Interest Accrued 2,086,977

6,516,000

3,089,000 6 Others (including Provisions and proposed dividend) 5,257,618

TOTAL 19,835,803

SCHEDULE - VI CASH AND BALANCES WITH RESERVE BANK OF INDIA 1 Cash in hand (including foreign currency notes) 1,418,778 2 Balances with Reserve Bank of India i) In Current Accounts 10,489,120 ii) In Other Accounts

– – TOTAL (1 & 2) 11,907,898

4 Unsecured Non-Convertible Redeemable Debentures/Bonds (Subordinated for Tier-II Capital)

5 Unsecured Non-Convertible Redeemable Non-Cumulative Subordinated Upper Tier II Bonds

SCHEDULES Rupees in '000sAs at 31.03.08

368,917 17,650,044 11,864,250

14,090,749 146,400,267

###

190,374,227

###

190,000 647,775 5,626,601 4,489,970 10,954,346 –

27,060 3,173,687 1,772,032

5,871,000

3,089,000 3,860,333

17,793,112

1,080,779

14,181,835

15,262,614

SCHEDULES

SCHEDULE - VII BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE1 In Indiai) Balances with Banks a) In Current Accounts b) In Other Deposit Accountsii) Money at Call and Short Notice with banks

2 Outside Indiai) In Current Accountsii) In Other Deposit Accountsiii) Money at Call and Short Notice

Schedule - VIII INVESTMENTS1 Investments in IndiaGross ValueLess : Provision for Depreciation Net value of Investments in India Comprising : i) Government securitiesii) Other approved securitiesiii) Sharesiv) Debentures and bondsv) Subsidiaries and/ or Joint Venturesvi) Others - Deposits under RIDF scheme with NABARDSecurity Receipt and Others 2 Investments Outside India

SCHEDULE - IX ADVANCESA i) Bills Purchased and Discountedii) Cash Credits, Overdrafts and Loans Repayable on Demandiii) Term Loans

B i) Secured by Tangible Assets (includes advances against book debts)ii) Covered by Bank / Government Guarantees (includes advances against L/Cs issued by Banks) iii) Unsecured

C i) Advances in India a) Priority Sector b) Public Sector c) Banks d) Others

ii) Advances Outside India

SCHEDULES Rupees in '000s

As at 31.03.0As at 31.03.08SCHEDULE - VII BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE

2,270,562 3,175,219 3,833,010 2,167,846

TOTAL (i & ii) 6,103,572 5,343,065

261,797 219,797 – 674,016 963,680 280,840

TOTAL (i, ii & iii) 1,225,477 1,174,653 GRAND TOTAL (1 & 2 7,329,049 6,517,718

80,883,399 66,457,983 49,344 161,022 80,834,055 66,296,961

62,943,591 54,357,127 37,531 37,618 357,192 390,562 142,504 402,121 5,000 5,000 16,566,998 11,025,133 781,239 79,400 ––

TOTAL (1 & 2) 80,834,055 66,296,961

13,858,815 4,460,055 50,894,833 37,099,856 92,952,711 86,393,165

TOTAL ### ### 137,477,632 116,878,804

ii) Covered by Bank / Government Guarantees (includes advances against L/Cs issued by Banks) 7,894,171 1,727,472 12,334,556 9,346,800

TOTAL ### ###

55,687,857 50,055,311 1,740,639 1,385,676 77,315 48,904 100,200,548 76,463,185

TOTAL ### ### – –

TOTAL ( i & ii) ### ###

SCHEDULES

SCHEDULE - X FIXED ASSETS1 PREMISESi) At cost as at the beginning of the yearii) Revaluation during the yeariii) Additions during the year

iv) Less : Deductions during the yearv) Less : Depreciation to date

TOTAL2 Other Fixed Assets (including furniture & fixtures)i) At cost as at the beginning of the year

iii) Less : Deductions during the yeariv) Less : Depreciation to date

TOTAL

3 Capital Work in Progress

SCHEDULE - XI OTHER ASSETS1 Interest Accrued2 Tax Paid in Advance / tax deducted at source (net of provision)3 Stationery & Stamps4 Non-banking assets acquired in satisfaction of claims

TOTALSCHEDULE - XII CONTINGENT LIABILITIES1 Claims against the Bank not acknowledged as debts2 Liability on account of outstanding Forward Exchange Contracts3 Liability on account of outstanding Derivative Contracts4 Guarantees given on behalf of constituents a) In India b) Outside India5 Acceptances, Endorsements and Other Obligations6 Other Items for which the Bank is contingently liable

TOTAL

ii) Additions during the year[includes Assets given on lease Rs.225,71,92 (Previous year Rs.225,71,92)]

TOTAL (1, 2 & 3)

5 Others [includes Deposits with banks Rs.98,35,54 being credit enhancement against Securitised Assets (Previous year Rs.210,07,81)]

SCHEDULESRupees in '000s

As at 31.03As at 31.03.08

4023757 1563174 - 240779845195 52,785.004,068,952 4,023,7578318 227922 1705773,832,712 3,853,180

5675521 5187565

421878 5096806097399 569724591496 217243746183 33734732259720 2302048

139502 96256

6,231,934 6,251,484

2086180 19444202436677 220171515681 11775601346 565441

6997646 561361512137530 10336966

2477661 2366200304536688 17112850498308730 91489952

17467744 18031370 - - 20200910 26803281 - -

442991733 309819307

Moment of NPAs and Provision of NPAs as on 31 March, 2009

A Amount of NPAs (Gross)Sub-standardDoubtful 1Doubtful 2Doubtful 3Loss

B Net NPAsC NPA ratios

Gross NPA to Gross advances (%)Net NPA to Net advances (%)

D Movement of NPAs (Gross)Opening Balance as on 01 .04.08Additions during the yearReductions during the yearClosing Balance as on 31.03.09

E Movement of provision for NPAsOpening as on 01 .04.08Provision made in 2008-09Write off / Write back of excess provisionsClosing as on 31.03.09

Non Performing Investmets and movement of provision for depreciation on Non Performing Investments

A Amount of Non-Performing InvestmentsB Amount of provision held for non-performing investmentsC Movement of provision for depreciation on investmentsOpening as on 01 .04.08Add: Provision made in 2008-09Less: Write-off/ write-back of excess provisionClosing Balance as on 31.3.09

Items

(i) Net NPAs to Net Advances (%)

(ii) Movement in NPAs (Gross)

a) Opening Balance

b) Additions during the year

c) Reductions during the year

d) Closing Balance

(iii) Movement in Net NPAs

a) Opening Balance

b) Additions during the year

c) Reductions during the year

d) Closing Balance

(iv) Movement in provisions for NPAs

(excluding provisions on standard assets)

a) Opening Balance

b) Provisions made during the year

c) Write-off/write-back of excess provisions

d) Closing Balance

Moment of NPAs and Provision of NPAs as on 31 March, 2009

137.1678.5832.43

6.640.21

179.13

1.61%1.14%

392.31219.00356.29255.02

101.29137.96163.36

75.89

Non Performing Investmets and movement of provision for depreciation on Non Performing Investments

00

16.100.01

11.184.93

2008-2009 2007-2008

1.14% 2.27%

392.31 342.73

219.00 155.49

356.29 105.91

255.02 392.31

291.02 273.75

81.04 102.45

192.93 85.18

179.13 291.02

101.29 68.98

137.96 53.04

163.36 20.73

75.89 101.29

SCHEDULES

Year ended31.03.09

SCHEDULE - XIII INTEREST EARNED1 Interest / Discount on Advances / Bills 179331122 Income on Investments 48324013 Interest on Balances with RBI and Other Inter-Bank Funds 1577274 Others 171504

TOTAL 23094744

SCHEDULE - XIV OTHER INCOME1 Commission, Exchange and Brokerage 13910182 Profit on Sale of Investments / Derivatives (Net) 12155483 Profit / (Loss) on Sale of Land, Buildings and Other Assets (-) 3062764 Profit on exchange transactions (Net) 7187665 Income earned by way of dividend from companies in India 287956 Miscellaneous Income 1514684

TOTAL 4562535

SCHEDULE - XV INTEREST EXPENDED1 Interest on Deposits 157596942 Interest on Reserve Bank of India / Inter-Bank Borrowings 11996963 Others including interest on Subordinate Debts and Upper Tier II bonds 1545024

TOTAL 18504414

SCHEDULE - XVI OPERATING EXPENSES1 Payments to and Provisions for Employees 18714442 Rent, Taxes and Lighting (includes operating lease rentals) 4963623 Printing and Stationery 1309014 Advertisement and Publicity 1551165 Depreciation on Bank's Property 4416826 Directors' Fees, Allowances and Expenses 55197 Auditors' Fees and Expenses (includes branch auditors) 99768 Law Charges 1287469 Postage, Telegrams, Telephones, etc. 27471410 Repairs and Maintenance 41704911 Insurance 20223412 Service Provider Fees 57450613 Other Expenditure 762092

TOTAL 5470341

SCHEDULESRupees in '000sYear ended31.03.08

142532944034701219163299451

18806609

10098091944236709288935373514855842975777

14011544558352122870115798597

121896636588811237321068401586608398391316422320763084841734794635575768874021928

Schedule No. XVIIINOTES ON ACCOUNTS

The capital adequacy ratio of the Bank, calculated as per RBI guidelines (Basel I requirement being higher) is set out below :Items 31-Mar-09i) Capital Adequacy Ratio (CRAR) 12.33%ii) CRAR – Tier I Capital (%) 7.52%iii) CRAR – Tier II Capital (%) 4.81%iv) Amount of subordinated debt raised as Tier-II capital (Rs. in crores) 100

2. Investments: (1) Value of Investments : 2008-2009(i) Gross Value of Investments 8,088.34(a) In India 8,088.34(b) Outside India ––(ii) Provision for Depreciation 4.93(a) In India 4.93(b) Outside India ––(iii) Net Value of Investments 8,083.41(a) In India 8,083.41(b) Outside India ––(2) Movements in provision held towards depreciation on Investments :Opening Balance 16.1Add: Provision made during the year 0.01Less: Write-off / write-back of excess provision during the year 11.18Closing Balance 4.93

1 Capital Adequacy Ratio:In terms of its guidelines for implementation of new capital adequacy framework issued on 27th April 2007, RBI has directed banks not having operational presence outside India to migrate to the revised frame work for capital computation (under Basel II) with effect from March 31, 2009. The migration is proposed in phased manner over a three-year period during which banks are required to compute their capital requirements in terms of both Basel I and Basel II. The minimum capital to be maintained by Bank under the revised frame work is subject to a prudential fl oor of 100%, 90% and 80% of the capital requirement under Basel I over the year March 2009, 2010 and 2011 respectively.

The capital adequacy ratio of the Bank, calculated as per RBI guidelines (Basel I requirement being higher) is set out below :31-Mar-08

11.91%6.7%

5.21%50

(Rs. in crores)2007-2008

6,645.86,645.8

16.116.1

6,629.76,629.7

12.786.373.0516.1

In terms of its guidelines for implementation of new capital adequacy framework issued on 27th April 2007, RBI has directed banks not having operational presence outside India to migrate to the revised frame work for capital computation (under Basel II) with effect from March 31, 2009. The migration is proposed in phased manner over a three-year period during which banks are required to compute their capital requirements in terms of both Basel I and Basel II. The minimum capital to be maintained by Bank under the revised frame work is subject to a prudential fl oor of 100%, 90% and 80% of the capital requirement under Basel I over the year March 2009, 2010 and 2011 respectively.