Vous êtes sur la page 1sur 192

<n E

ALLAHABAD BANK

|vx E : 2, xiV b , EEi-700 001


HEAD OFFICE: 2, NETAJI SUBHAS ROAD, KOLKATA 700 001

www.allahabadbank.in
-S / contents

JtrMofU r;Ju=l

ANNUAL REPORT
2010-11
{. . / Page No.

{. . / Page No.

02

rl=uNfUt, tuFtvheGfUtuk ytr= fUe mqae


+vI B |v xnE E n

03-07

08-12

E E xnE E {]

13-26

- II |E]Eh

27-54

fUthvtuhux dJluom { {]

55-78

fUthvtuhux dJluom { J{IE fUt btKvt


Auditors Certificate on

79

E E k h

80-122

E E J{IE E {]
Auditors Report of the Bank

mqaec;t fUhth fuU Fkz 49V fuU +xh


b |h{j

187-188

vhtuGe

189-190

<B b] i

JtrMofU x XE E iJ, J :tl


Date, time & Venue of Annual
General Meeting

191-192

10.06.2011

t;& 10.30 A.M.

14.05.2011

vqcoe ytprzxturhgb, Ro]x Wx ES x],


i ES ]{C, +<-201, C]
] E ], EEi - 700106

|vEi |ixv E xH Ex v
{I YJk mkfUv tr; fUe ykr;b r;r:
Last date for receipt of proxy form

186

/ IMPORTANT PROGRAMMES & DATES

|{i Ex E B vE E
{ji E xvi Ex E +Ji iJ
Cut off Date for ascertaining the
Shareholders eligibility to get dividend

={li {S B | {j

Form for ECS mandate

123-124

bnJvqKo EG YJk il

181-185

Proxy Form

Financial Statements of the Bank

+ E <xx . E J{IE E {]

Certificate Pursuant to clause 49V of the


Listing Agreement

Corporate Governance

157-180

Attendance Slip cum Entry Pass

Report on Corporate Governance

+ E <xx . E rJteg rJJhK

Auditors' Report of AllBank Finance Ltd.

Basel - II Disclosure

154-156

Financial Statements of
AllBank Finance Ltd.

Directors Report of the Bank

+ E <xx . E xnE E {]
Directors' Report of AllBank Finance Ltd.

Notice of Annual General Meeting

152-153

Financial Statement

Director's Message

JtrMofU mtbtg ciXfU fUe mqalt

Ei k h { J{IE E {]
Auditors Report on Consolidated

Chairman & Managing

125-151

Consolidated Financial Statement

List of Directors', Auditors' etc

Ei k h

06.06.2011

- III,

Purbashree Auditorium, Eastern Zonal Cultural Center,


Bharatiyam Cultural Multiplex, IB-201, Sector-III,
Salt Lake City, Kolkata-700106

and resolutions for appointing


authorized representatives

<n E

ALLAHABAD BANK

|vx E : 2, xiV b , EEi-700 001


HEAD OFFICE: 2, NETAJI SUBHAS ROAD, KOLKATA 700 001

1. su. {. =qqyt

xnE b

BOARD OF DIRECTORS (AS ON 31.03.2011)

+vI B |v xnE

SHRI J. P. DUA

Chairman & Managing Director

SHRI D. SARKAR

Executive Director

SHRI M. R. NAYAK

Executive Director

SHRI S. RAMASWAMY

Director

SMT. SUKRITI LIKHI

Director

SHRI R.M.CHATURVEDI

Director

SHRI P.V.GUDIREDDY

Director

Dr. Shakeel-Uz-Zaman Ansari

Director

SHRI GOUR DAS

Director

SHRI DEVESHWER KUMAR KAPILA

Director

2. b. E

E{E xnE

3. B. +. xE

E{E xnE

4. e Ym. htbJtbe

xnE

5. i Ei J

xnE

6. e yth. Yb. a;wJuo=e

xnE

7. {. . Mbd

xnE

8. ztp. E-=W-Wx +

xnE

9. e dtih =tm

xnE

10. n E E{

xnE

11. ztp. xi EV M

xnE

DR. VASANT BABURAO KAUJALGI

Director

12. n{ Sv

xnE

SHRI SUDIP CHAUDHURI

Director

J-{IE/AUDITORS
1. 0 ni E. {J Bb E.

xn JE

M/S SUDIT K. PAREKH & CO.

Chartered Accountants

2. 0 {. B. Bb BB]

xn JE

M/S P. A. & ASSOCIATES

Chartered Accountants

M/S M. R. NARAIN & CO.

Chartered Accountants

M/S S. GHOSE & CO.

Chartered Accountants

3. bu0 B. +. xh Bb E.

xn JE

5. bu0 B. P Bb E.
5.

xn JE

bu0 E. B. +O Bb E.

xn JE

M/S K. M. AGARWAL & CO.

Chartered Accountants

M/S M. C. JAIN & CO.

Chartered Accountants

6. bu0 B. . Vx Bb E.

V] B +ih BV]

xn JE

/REGISTRAR & SHARE TRANSFER AGENT

bu. BB ]b (x]-<n E)
77/2A, V b
EEi-700 029
]x - 033 2454-1892/1893
C - 033-24541961
<- : mcscal@cal2.vsnl.net.in

M/S MCS LTD. (Unit Allahabad Bank)


77/2A, Hazra Road,
Kolkata-700029
Tel : 033-2454-1892/1893
Fax : 033-24541961
Email : mcscal@cal2.vsnl.net.in
Website : www.mcsdel.com

Website : www.mcsdel.com

+vI B |v xnE
E n

Chairman and Managing


Directors Message

| vE,

Dear Shareholders,

Z 2010-11 i +{E E E E
{] +{E I |ii Ei B +ii |zi
* , r v < x
l E +vI B |v xnE E { ,
+{E ix Si E +{E +{ lx
E { +{E E E B P k
V < =l-{l E i {E
+bM *
{U k E nx E` V n E {n + Ei
iV E li x * pi { xjh E | E {
i V E pE xi E E` Ei + S,
2010 + iE { B V { n E +` g SE * E
E B S k V n E E` Ex E Ei
*
2010-11 E E Ex{nx E +SU + <x
"n ii r' E +{x Mx E Vxi xB J * <x E<
i{h k {] =tM i Ex{nx E *
E E oi {{i r < * < Vxi VM ,
V E E E Ei < ii r |ii i *
E E BB< Ij @h |nx Ex i i E
]{i u =iE]i E |l {E |nx E M* n
og, iV E Ex B vE nI E E v
Vx ]b-E{BV u EB MB +vx E E lx
n E k E 8 * {x: E +vi + r E
o] Vx ]b x n E k E E E |l lx
|nx E *

It is my great pleasure to place before you the


Annual Report of your Bank for the financial
year 2010-11. As the Chairman & Managing
Director of this great institution with a rich
legacy, I would like to put on record that because
of your unstinted support your Bank has
successfully withstood the upheavals in the
global as well as domestic financial markets.
There was hardening interest rate environment and high price
spirals during last financial year. The Reserve Bank of India
has been tightening the monetary policy and has already
increased the Repo and Reverse Repo rates eight times
since March, 2010 in an effort to contain inflation. For the
Bank, this is also a signal for hardening of interest rates in
the current financial year.
The performance of the Bank in 2010-11 has been very good
and the Bank has lived up to its slogan of Consistent Growth
All the Way. It has done better than the industry in a number
of key financial parameters. The Banks visibility has
increased considerably. This led to an upsurge in public
confidence and was reflected in the elevated and steady share
price of the Bank. The Bank was awarded 1 st prize for
excellence in MSE lending by Her Excellency the President of
India. The Bank was ranked at 8th position among Indias
Best Banks by Business Today-KPMG study of the strongest,
fastest growing and most efficient Banks in the country. Again
Business Today ranked the Bank 1st among Indias Best
Banks in the growth of fee based income.

{] { i +ll + EM {o E {|I
2010-11 E nx +{E E E Ex{nx E h I{
+{E I |ii E *
2. +lE B EM {o
2.1 i +ll x +{x +iE H n< +
ii E E =SS {l { +O * 2010-11 8.6%
E +xxi E P =i{n r E J E Ij
Ex{nx =U (5.4%) + Ij B i E
(9.7%) E Vi *

I am most candidly placing before you an analysis of the


performance of your Bank during 2010-11 along with a brief
account of the Indian economic and banking scenario.

2.1

Indian economy has shown great resilience and has


been on sustainable growth path. The estimated GDP
growth of 8.6% in 2010-11 was mainly contributed by
rebounded agriculture sector performance (5.4%) and
accelerated services sector growth (9.7%).

2.2 =SS E n |{i Ex i {E ]-+lE {]


+ +xE * S 2011 E {i i xi
37.5% E r nV Ei B 245.9 x B b iE
{S M* < x xx E +xx + <
=tM + Ij nx 2011-12 E E jv
Ei *
2.3 < il E xE x V Ei E i =SS pi
+ n +lE r E n Z VE x
Ex xi xE E Exp BVb M* J xi n
ii +i { r E { |ii +

2.2

The broad macro-economic parameters are still


conducive for achieving a high growth. Exports for the
year ending March, 2011 touched US$ 245.9 billion
registering a growth of 37.5%. There is a prediction of
normal monsoon and coupled with this, both industry
and service sectors could be growth drivers in
2011-12.

2.3

It is no denying the fact that India is being confronted


with the double edged problem of high inflation and
moderating economic growth dealing with which has
been the focal agenda of the policy makers. This is

2. Economic and Banking Scenario

3 < 2011 E Pi E pE B @h xi
2011-12 { B { 50 +v n E r E
<x G: 7.25% B 6.25% E n M* i pE
xi H E @J EB MB ={ ix E |G
E V Ji B pi v +x E V Jx E
Z EG E ii i EB MB *

being reflected in the rise in key policy rates in quick


succession, the latest being the 50 basis points hike
in the repo and reverse repo rates raising the rates to
7.25% and 6.25% respectively in the Annual Monetary
and Credit Policy 2011-12 announced on 3rd May, 2011.
The measures, taken in the series of monetary policy
statements in India, have been prepared with the
common agenda of sustaining the anti-inflationary drive
keeping the ongoing growth process sustainable.

2.4 E nx EM Ij r =iVxE * -n-


+v { +xSi hVE E E @h 25 S 2011
E 21.4% E r nV < V 2010-11 i E 20%
E EiE +xx +vE * 25 S 2011 E
lli +xSi hVE E E E V n- +v { 15.8% E r < ** +{I Ei
E 2012 EM =tM V r MM 17% + @h
r MM 19% M*
2.5 E nx +{E E E Ex{nx x V
V E V + 7{B E r il @h E V
+ 8{B E r E { |ii + * 2011
+xSi hVE E V E V + 2010 E
2.24% E {I 2011 2.31% + @h + 2010
E 2.15% E {I 2011 2.23% *
2.6 E x Jn E iV E Ex E E
E * +{E E E V + < +
r x E +xx = Ii E {h V
{U EU u nJ< M< V 100% E
EM x (B), 2400 +vE J+ E l
+J i ={li, SxMi =i{n E +i +
ExpEi ] EM ]E (+) E l{x +n*
3. E E Ex{nx
3.1 ={H +lE B EM {o E {` , +{E E E
Ex{nx x V +ii: +{E E E |i
V E +vh E< Mx <V + *
3.2 2010-11 E nx E E x 17.97% E r
ni B {U E .1206 Ec g E .1423
Ec M* E E {Sx 19.86% E r ni
B {U E . 2549 Ec g E 2010-11 E
nx . 3055 Ec M*
3.3 E E M-xv M-V + < .697 Ec gE
.857 Ec M< * E +vi + r Ex E
+{x | E { E x + ii {I =i{n E G
i Zi + H =t E + BBB, Bx{B
G{x, <-=i{n E {hx, h CE E G, @h
x +n E { x< { E * < E ii {I
=i{n (]{{) E G .18 Ec E + +Vi Ex

3.4 31.03.2011 E lli Mi-+ +x{i 43.36% *
2010-11 .575 Ec E |vx {x B OS] ni
i E M * < vx Ji B E l{x
4

2.4

The banking sector growth has been encouraging


during the year. On year-on-year basis, SCBs credit
grew by 21.4% on March 25, 2011, which exceeded
RBIs indicative projection of 20% for 2010-11. The
Aggregate deposits of Scheduled Commerical Banks
(SCBs) grew by 15.8% on y-o-y basis as on March 25,
2011. We expect for banking industry, a deposit growth
of around 17% and credit growth of around 19% in 2012.

2.5

Your Bank has shown commendable performance


during the year which was reflected in an increase of 7
bps in market share of deposit & 8 bps in credit. The
market share of deposits in SCBs has increased to
2.31% in 2011 as against 2.24% in 2010 and
credit share increased to 2.23% in 2011 from 2.15% in
2010.

2.6

The Bank has put itself into the orbit of fast growing Public
Sector Banks. The market share of your bank is projected
to grow further this year. The confidence is coming from
the capacity that we have built up over the last few years
like implementation of 100% Core Banking Solution
(CBS), Pan India presence of more than 2400 branches,
introduction of structured products and establishing
Central Retail Banking Boutiques (CRBBs) etc.

3.

Performance of the Bank

3.1

In the backdrop of above economic & banking scenario,


your Bank has shown a commendable performance to
add to stakeholders value which ultimately helped in
increasing market perception manifold.

3.2

The net profit of the Bank showed a growth of 17.97% to


reach Rs.1423 crore during 2010-11 from Rs.1206 crore
in the preceding year. Operating profit of the Bank went
up to Rs.3055 crore during 2010-11 from Rs.2549 crore
in the previous year, showing a growth of 19.86%.

3.3

The non-interest income of the Bank increased from


Rs.697 crore last year to Rs.857 crore this year. The
Bank, in its endeavor to improve the Fee Based income,
apart from tie-up and joint ventures for insurance and
sale of third party products, took several new initiatives
in the form of ASBA, NPS Subscription, marketing of eproducts, sale of gold coin business, loan syndication
etc. The Bank was able to generate an income of Rs.18
crore from selling of Third Party Products (TPP) this
year.

3.4

The cost to income ratio stood at 43.36% as on


31.03.2011. An amount of Rs.575 crore was provided
towards the liability for pension and gratuity in 2010-11.

E +x { i 2009-10 E 13.79 % E { I
2010-11 gE 16.69% M VE < +v E
nx E {Sx E +x{i 8.26% g E
8.37% *
4. Mi, + B Vx
xv E Mi E |vx i Sxi{h CE
V n E` i Ei +{E E E V Mi 14{B
E E +< +li E E V Mi 2009-10 E nx 5.97%
E {I 2010-11 E nx P]E 5.83% M< V <
+v E nx E E O xv Mi 5.99% P]E 5.85%
M<* {] E {xix E l SE @h r +O
{ + 2009-10 E nx 10.57% E {I 2010-11 E nx
j 7{B P]E 10.50% * E E x V Vx
{U E 2.94% E {I 2010-11 gE 3.38% M*
5. |ni +x{i

In view of this also , the ratio of establishment expenses


to total expenses increased to 16.69% in 2010-11 from
13.79% in 2009-10 while the ratio of other operating
expenses to total expenses increased to 8.37% from
8.26% during the period.
4. Cost, Yield & Margin
The year was challenging for managing cost of funds as
interest rates were hardening throughout the year but the
cost of deposits of your bank decreased by 14 bps i.e. 5.83%
during 2010-11 from 5.97% during 2009-10, reducing the
overall cost of fund of the Bank to 5.85% from 5.99% during
the period. With cautious credit growth along with rebalancing
of portfolio, Yield on advances decreased by only 7 bps i.e.
10.50% during 2010-11 from 10.57% during 2009-10. The
NIM of the Bank increased to 3.38% in 2010-11 from 2.94% in
the previous year.
5. Profitability Ratios

+i { |i 31.03.2010 E lli 1.16% E {I


31.03.2011 E lli 1.11% * |i ES 201910 E nx .5.76 J E {I 2010-11 E nx gE
.6.70 J M* |i + 2009-10 E .27.01 g
E 2010-11 . 31.85 M< VE < +v E nx
.151.17 gE .178.64 M*

Return on Assets stood at 1.11% as on 31.03.2011 as against


1.16% as on 31.03.2010. Profit per Employee improved to
Rs.6.70 lacs during 2010-11 from Rs.5.76 lacs during 200910. Earnings per share went up to Rs.31.85 during
2010-11 from Rs.27.01 during 2009-10 while book value per
share improved to Rs.178.64 from Rs. 151.17 during the
period.

6.
6.1 i OE , x]E i + xB =i{n E {h{
E E E 31.03.2010 E lli .1,78,493
Ec 26.87% gE 31.03.2011 E lli .
2,26,458 Ec iE {S M* E V 31.03.2010
E lli . 1,06,056 Ec E {I 24.36% g E
31.03.2011 E lli . 1,31,887 Ec M<* E
E E @h 31.03.2010 E . 72,437 Ec E {I
30.56% g E 31.03.2011 E lli . 94,571
Ec M*
6.2 |i ES V 31.03.2010 E lli . 8.45
Ec l 31.03.2011 E lli gE .10.63 Ec
M* VE < +v E n x |i J .77.62
Ec gE .93.38 Ec M*
7. x]E B b Sx
+{E E x xnx E Mi E E Ex E B |tME E
+{x H x + + xSi Ex i Ii E
xh E B x E * b Sx E J gx {
n M + 2010-11 E nx 129 x< JB J M< *
E x S k 150 x< JB + 500 B]B Jx E
Vx x< *
8. +xVE +i
E nx +{x +i E Mhk xB Jx E Sxi{h
* E E E +xVE +i 31.03.2010 E lli
E @h E 1.69% E {I 31.03.2011 E 1.74% *
x Bx{B 31.03.2010 E 0.66% E {I 31.03.2011 E
0.79% * i V E E 70% E xB xnb E {I
|vx EV +x{i 75.67% *

6. Business
6.1

Focused approach towards enhanced customer


service, network expansion and new products resulted
in increase of Banks total business mix by 26.87% to
reach the level of Rs.2,26,458 crore as on 31.03.2011
from Rs.1,78,493 crore as on 31.03.2010. Total
Deposits grew by 24.36% to Rs.1,31,887 crore as on
31.03.2011 from Rs.1,06,056 crore as on 31.03.2010.
Gross credit of the Bank went up by 30.56% to Rs.94,571
crore as on 31.03.2011 from Rs.72,437 crore as on
31.03.2010.

6.2

Business per Employee increased to Rs.10.63 crore


as on 31.03.11 from Rs.8.45 crore as on 31.03.10 while
business per branch went up to Rs.93.38 crore from
Rs.77.62 crore during the same period.

7. Network & Delivery Channels


Your Bank has leveraged technology to lower transaction
costs and invested in capacity building for future earnings.
There was focus on increasing the number of delivery
channels and we opened 129 new branches during 201011. The Bank has planned to open around 150 Branches and
500 ATMs in the current financial year.
8. Non- Performing Assets
It was a big challenge to maintain our asset quality during the
year. The gross non-performing assets of the Bank stood at
1.74% of gross bank credit as on 31.3.2011 as compared to
1.69% as on 31.03.2010. The net non-performing assets
stood at 0.79% as on 31.03.2011 as compared to 0.66% as
on 31.3.2010. The Bank had provision coverage ratio of
75.67% against the new RBI norm of 70%.

9. {V {{ii xnb
E x .10 |i E MM 2.9 Ec <C]
.217 |i E | { +vx +v { MM .670
Ec i E E +]i EB * {V E +
E E Jx 31.03.2011 E lli g B {
-** xnb E +x {V {{ii +x{i 12.96%
V 31.03.2010 E lli 13.62 %l*
10. |tME
Z +{E Si Ei B |zi E {U E {]
u EB MB n E +x E E JB + E
B E {v + MB * |tME +MEh E Ij =Jx
P]xG - <]x] EM, BBB EM, <-EM,
]< O ]](+]VB/Bx<B]) E Exx, +x-<x
]C BE=]M ] (+]) +n* E E Vx '+v'
{Vx E +iMi E E +vE OE E xE +<b]Ex
x (+<b) V Ex E * E E <] + ix + +li
n, +OV + M ={v *
11. x vx E
+{E E M`x E gi +EI+ E +x{ +{x x {V E
E + Ii r E +{x x {V E E E B
|ir * E nx 11300 ES E Si |Ih |nx
E M* E nx E x 1851 ES (972 +vE B
879 ES) E i E * +{E E E ] E =i{nEi
xi r + < i E |h E E E |i
ES 31.03.2010 E . 8.45 Ec E {I 31.03.2011
E gE .10.63 Ec M*

9. Capital Adequacy Ratio


Bank has allotted around 2.95 crore equity shares of Rs 10
each at a premium of Rs 217 per share amounting to Rs 670
crore approximately on preferential allotment basis to
Government of India. With the capital infusion & retention of
profit, the capital adequacy ratio is attained at 12.96% on our
increased business as on 31.03.2011 as against 13.62% as
on 31.03.2010 as per Basel-II norms.
10. Technology
I feel happy to inform you that the Bank has brought all its
branches and offices under CBS ambit as promised by me
in the last years report. The notable developments in the
area of technology adoption include launching of internet
banking, SMS banking, e-banking, implementation of Real
Time Gross Settlement / National Electronic Fund Transfer
(RTGS/NEFT), On-line Tax Accounting System (OLTAS) etc.
Bank plans to facilitate issuance of Unique Identification
Number (UID) to most of the Customers of the Bank under
the project ADHAAR. Banks Internet Website is now
available in 3 languages i.e. Hindi, English and Bengali.
11. Human Resource Development
Your bank is committed to developing its human capital by
enhancing its skill and capacity in tandem with the growing
aspirations of the organization. We have imparted suitable
training to 11300 employees during the year. The Bank has
recruited 1,851 employees (972 Officers and 879 Clerks)
during the year. The productivity of staff of your Bank has been
consistently increasing as evident from the fact that Business
per Employee increased to Rs.10.63 crore as on 31.03.11
from Rs.8.45 crore as on 31.03.10.

12. k x
|ixv E v ]E ] Eb x,
B]BH < EM x + n- n {{Mi JB Jx
V z b E +{xi B +<] li k x E
+iMi E E 2000 + +vE VxJ 2618 M E ni
{ M V S 2012 iE EM +=]] JE EM B
|nx E Vx * E n x E x 5 JB JE + 2 <
EM x EE il 1031 M |ixv E v
1046 M E I E {I 1054 M E k x E +iMi
M + k { i <x M 2.51 J Ji
J MB l*
13. E{] VE ni
+{E E E{] VE =kni Ji +
< Ij <x +xE EhE E EB * +{x | E {
E x VE {Vx+ E { E V Oh VM
|Ih lx (+B<]+<) E l{x, k Ii B @h
{ Exp (BB) E J Vx + "x ', {
x {+ E +{xx V V + = { , V E
Ei , BE {] {ix x nn Ei *
14. +xM l
E E {h i +xM E{x + E <x ., V
h-* S] E E { {VEi , <x 2010-11
.2.80 Ec E E {Si ({B]) +Vi E *
15. x< {
15.1 +{E E E E E =SS {l { +M Vx E B
+xE x< { E M< * n E E OE E +xx {Sx

12. Financial Inclusion


Bank has been given with the responsibility of 2618 villages
having population of 2000 and above where banking services
are to be provided by opening of banking outlet by March,
2012 under ICT enabled Financial Inclusion by adopting
various models viz. Biometric Smart Card solution through
Business Correspondents, Mobile Banking Van fitted with
ATM, and opening of Brick & mortar branches. During the
year the Bank had covered 1054 villages against a target of
1046 villages by opening of 5 Branches, by launching of 2
Mobile Banking Vans and 1031 villages through BC model
and 2.51 lacs accounts were opened in those FI villages.
13. Corporate Social Responsibility
Your Bank believes in Corporate Social Responsibility and
has taken a number of welfare measures on this score. In this
endeavor, Bank has taken initiatives for social projects like
establishment and facilitation of RSETI (Rural Self Employment
Training Institute), opening of Financial Literacy and Credit
Counseling Centers (FLCCs) and adoption of wild animals at
Van Vihar Bhopal which can facilitate visible change in the
society and environment in which the Bank operates.
14. Subsidiaries
All Bank Finance Ltd., a fully owned subsidiary of the Bank
registered with SEBI as Category-I Merchant Banker, earned
a profit after tax (PAT) of Rs.2.80 crore in 2010-11.
15. New Initiatives
15.1 Bank has taken several new initiatives to put your bank
on a high trajectory of growth. The Bank entered into Tie-Up

J +]i Ex E =q E x "xE +<b]Ex


+l] + <b .' E l Zi E * E x E{]
OE E <]x] EM v ={v Ex E +iMi S Ji
vE E B x]-EM v | E * ixM ES E
+Ei+ E {i E =q E x +ixi + b}] v
B | +xE i E l "+ E Bb]V
|' xE vi Si Ji =i{n | E * +E
E+ E Eh i "+ E E M Vx" xE
V Vx E i S k E M *
15.2 x n +{x <]x] OE i 27 ExpEi Jn
EM ]E (+) E 27 +Oh |iE J+ E v
+x <x Jn |M B Ei E v | E *

arrangement with Unique Identification Authority of India Ltd


with a view to allot Unique Identification Number to Customers
of the Bank nation-wide. The Bank has introduced net-banking
facility to the Current Account holders under Internet Banking
Facility to the Corporate Customers. To cater to the needs of
the salaried employees a value added savings account
product Allbank Advantage Salary Premium was introduced
with inbuilt overdraft facility and several concessions in service
charges. All Bank Baalika Mangal Yojana, a special deposit
scheme for the welfare of minor girl child has been extended
for the current financial year also.

16. o]Eh
16.1 n +{x ={li gx E =q MEM +{x
n J + xZx, Sx |ixv E E + E x
n + +vE JB Jx E Vx x< * E +{x
vx +v E gx E B MM 500 x B b E
B]Bx < x E Vx x *
16.2 E E E E Mi E E Ji B +{E E x S
k 24% E r E I J + S 2012 i
MM . 2,80,000 Ec E i E +xx M *

16. Future Outlook

15.2 We have started Online Retail Processing and sanction


facility to our internet customers through the lead generating
branches of 27 Centralised Retail Banking Boutiques (CRBB)
across the country.
16.1 In order to increase overseas presence, apart from
the existing overseas branch at Hong Kong as well as
representative office at Schenzen China, the Bank has
planned to open more overseas branches. To increase the
resource base, the Bank is planning for MTN issue of around
US $500 million.
16.2 Sustaining the growth momentum of the Bank, your
Bank has targeted a business growth of 24% during the
current year and projected a business level of around
Rs.2,80,000 crore as at March 2012 .

17. {E B ={v
+{E E E i E u 2009-10 BB< E @h ={v
Ex i =iE]i E |l {E |nx E M* {E
31.08.2010 E x< n i E xx ]{i
i |i n {] +{E +vI B |v xnE u |{i
E M* E E 2008-09 i V Exx E Ij =iE]
Ex{nx i i E xx ={ ]{i . n
+ u nxE 14.09.2010 E "<n Mv V {E'
|nx E M* +{E E E E V E =iE] E i
26.05.2010 E i V E E xx Mx b. b.
V E V {E |{i +*

17. Awards & Achievement


Your Bank has been awarded the First Prize for excellence in
MSE Lending for 2009-10 by the Govt. of India. The Prize was
received by your Chairman & Managing Director from H.E.
Smt. Pratibha Devi Singh Patil, Honble President of India in
New Delhi on 31.08.2010. The Bank has been awarded Indira
Gandhi Rajbhasha Puraskar by H.E Md. Hamid Ansari,
Honble Vice-President of India for excellence in
implementation of Rajbhasha in the Bank for 2008-09 on
14.09.2010. Your Bank has also been awarded the Reserve
Bank Rajbhasha Puraskar for excellence in implementation
of Rajbhasha in the Bank from Dr. D. Subbarao, Honble
Governor, RBI on 26.05.2010.

18. +
+{x i {i Ex { , { lx + ii Mnx
i i E + i V E E |i nE + |E]
Ex SM* xnE b E + b E
n E =xE u nB MB |ix B Mnx i vxn ni
* E nx E n{h ih E +
E E E i ES E Mn |x
* =x 26 x OE E Vx =i
E E J il +{x Ex{nx E i Ex E B
|i E*
19. ={
+{E E x +{x lE +ii E 147 | E ,
Z E vE, OE, ES + SiE E
l -l i E + i V E E ii lx +
Ih +{E E =iE]i E + En gx V JM +
=tM BE x< iEi E { {Sx VBM*
n
5 <, 2011

18. Acknowledgement
Before I close, I would like to place on record our deep sense
of gratitude to Government of India and RBI for their unstinted
support and continued guidance. The Board of Directors has
always been supportive and I thank the members of the Board
for their encouragement and guidance. Cordial atmosphere
in the Bank continued during the year and the participation of
rank and file in the business development deserves a word
of appreciation. It is the confidence of 26 million customers
which keeps up our spirits and inspires us to better
performance.
19. Conclusion
As your Bank enters the 147th year of purposeful existence, I
am confident that with the continued support and patronage
of the shareholders, customers, employees and well wishers
as well as the Government of India & Reserve Bank of India,
your bank will continue its march toward excellence and will
be a force to reckon with within the Industry.

+{E

Yours sincerely,

(V.{. n+)

(J. P. Dua)

+vI B |v xnE

5th May, 2011

Chairman & Managing Director

<n E

ALLAHABAD BANK

|vx E : 2, xiV b, EEi-700 001

Head Office : 2, N.S.Road, Kolkata-700 001

Sx

NOTICE

"Binu Sx n Vi E E E vE E lti E
+ `E Nwf{U, 10 Vx, 2011 E {x 10.30 V, vqcoe
ytprzxturhgb, Ro]x Wx ES x], i ES ]{C,
+<-201, C] - III, ] E ], EEi - 700106,
+Vi E VBM V xxJi b=t vh fUtgoJtne fUe
stYde :

Notice is hereby given that the Nineth Annual General Meeting


of the shareholders of the Bank will be held on Friday, the 10th
June, 2011 at 10.30 A.M. at Purbashree Auditorium, Eastern
Zonal Cultural Center, Bharatiyam Cultural Multiplex, IB-201,
Sector-III, Salt Lake City, Kolkata-700106 to transact the
following business (es) :-

1. ""lli 31.03.2011 E E E ix-{j il 31.03.2011


E {i i -x J, < +v i E E
E + Miv E xv xnE b E |inx
+ ix-{j il tuFt { J{IE E {] { SS,
+xnx B +MEh*""
2. <C] { E Ph*
lx: EEi
iJ: 02.05.2011

xnE b E +n mu
(V.{. n+)
+vI B |v xnE

1.

To discuss, approve and adopt the Balance Sheet, Profit


& Loss Account of the Bank as at and for the year ended
31st March, 2011, the Report of the Board of Directors on
the working and activities of the Bank for the period
covered by the Accounts and the Auditors Report on the
Balance Sheet and Accounts.

2.

To declare Dividend on Equity Shares.


By order of the Board of Directors

Place : Kolkata
Date : 02-05-2011

( J. P. Dua)
Chairman & Managing Director

ltuxTm

NOTES:

1. |C E xH :

1.

E ={li x + inx Ex E nfU=th vE E


|C xH Ex E E V =E + E ={li
+ inx E + B |C E E E -vE x
+E x * |C E | xx i E E
Nugh rJCtd |vx E, 2, Bx. B. b, EEi - 700 001
` E E il S nx +vE x +li ,
06 Vx, 2011 E E {i = { + |{i Vx
SB* E{ x] E E <n E ( + ` E) xx
1999 E +x E E E ES +l +vE E |C
E { xH x E V Ei*

A Shareholder entitled to attend and vote at the meeting, is


also entitled to appoint a proxy to attend and vote instead of
himself/ herself, and such a proxy need not be a Shareholder
of the Bank. The proxy form in order to be effective must be
received by the Bank at its Share Department, Head Office, 2,
Netaji Subhas Road, Kolkata-700 001 not later than FOUR
DAYS before the date of the Meeting i.e on or before the closing business hours of Monday, 6th June, 2011. Please note
that any employee or officer of Allahabad Bank cannot be appointed as proxy as per provisions of Allahabad Bank (Shares
& Meetings) Regulations, 1999.

2. |vEi |ixv E xH :

2.

E< H, E xMi xE, V E E vE ni, E vi


|vEi |ixv E { i iE E ={li x EM +l
inx x E EM V iE E vi |vEi |ixv E {
=E xH Ex E{ E |i = ciXfU, V = {i
E M , E +vI u i|i E { |hi E M ,
E E |vx E fuU Nugh rJCtd, 2, xiV b, EEi
700001 b ciXfU fUe r;r: mu +vEi S r=l vnu +li
mtub, 06 Vx, 2011 E E{i = { |{i VB*
E{ x] E E <n E ( + ` E) xx, 1999
E +x E E E ES +l +vE E |vEi |ixv
E { xH x E V Ei*

APPOINTMENT OF PROXY

APPOINTMENT OF AN AUTHORISED REPRESENTATIVES

No person shall be entitled to attend or vote at the meeting as


a duly authorized representative of any body corporate which
is a shareholder of the Bank, unless a copy of the resolution
appointing him/her as a duly authorized representative, certified
to be a true copy by the Chairman of the meeting at which it
was passed, has been deposited at the Head Office of the
Bank with Share Department, Allahabad Bank, 2, Netaji Subhas
Road, Kolkata-700 001 not later than FOUR DAYS before the
date of the Meeting i.e on or before the closing business hours
of Monday, 6th June, 2011. Please note that an employee or
officer of Allahabad Bank cannot be appointed as authorized
representative as per provisions of Allahabad Bank (Shares &
Meetings) Regulations, 1999.

3. ={li {S--|u{j :

3.

vE E v i ={li {S--|-{j E {]
E l Mx * vE / |C vE / |vEi |ixv
+xv E < + < nB MB lx { iI E
< E l { |ii E n* vE E |C/|vEi |ixv
E SB E +{x ={li {S--| {j { lli
|C +l |vEi |ixv E =J Ehu*

ATTENDANCE SLIP-CUM ENTRY PASS

For the convenience of the shareholders, attendance slip-cum


entry pass is annexed to the Annual Report. Shareholders/
Proxy holders/Authorised Representatives are requested to
fill in and affix their signatures at the space provided therein
and surrender the same at the venue. Proxy/Authorised
Representatives of shareholders should state on their
Attendance Slip-cum Entry pass as Proxy or Authorised
Representatives as the case may be.

4. vE E V] E xn E Vx :

4.

lti E + ciXfU E v + E u Pi , n
E< , |{i Ex E En vE E xvh Ex E
|Vx E E vE E V] + +xih
mtub, 16 <, 2011 Nwf{U, 10 Vx 2011 iE (nx nx
) n hnde*

CLOSURE OF REGISTER OF SHAREHOLDERS

The Register of Shareholders and the Share Transfer Books


of the Bank will remain close from Monday, 16th May, 2011 to
Friday, 10th June, 2011(both days inclusive) in connection with
the Nineth Annual General Meeting and for the purpose of
determining the eligibility of the shareholders entitled to receive
the dividend, declared by the Bank.

5. E Mix :

5. PAYMENT OF DIVIDEND

E + ` E vE u Pi E Mix, n
E< , =x vE E E VBM VxE x:

Payment of dividend, if declared by the Shareholders in the


Annual General Meeting, will be made to those shareholders
whose names appear:

E) Nrl 14 <, 2011 E lli E mbtrt vh


<C]xE J E v Bx.B.b.B./
.b.B.B. u i EB MB ivE , E
S , ;:t
J) iE vh Ex vE E {I 14.05.2011
E E E {i { |{i v +ih +xv E
| Ex E n Nrl, 14 <, 2011 E vE E
V] M*
B vE E ], rsntulu YlRomeYm tht yvlu
fUtu sbt fUhlu nu;w rJfUv ln r=gt ni, Pi x
E iJ 30 nx E +n V] + ] BVx]
+li bu0 YbmeYm . E v =xE {VEi {i { Cusu
stYkdu*
Nugh"thfU rsntuklu YlRomeYm tht yvlu ttCtkN fUtu sbt fUhlu
nu;w rJfUv r=gt ni, WlfuU RomeYm yr"=uN fuU ylwhv WlfuU cfU
Ft;u b ttCtkN htrN me"u sbt fUh;u nwY YlRomeYm fuU btgb mu
ttCtkN fUt Cwd;tl rfUgt stYdt> YlRomeYm rlVUt/Jtvm ntu stlu
fUe =Nt b ttCtkN gtCqr;gt fUtu mkckr"; Nugh"thfUt fUtu sthe
rfUgt stYdt>
ttCtkN fUt Cwd;tl, Cth; mhfUth fUe ytJgfU mk;wr; fuU
yg"el ni>
E Mix E il 28 Vx 2011 M*

Dividend warrants to such shareholders who have not opted


for credit of their dividend through NECS would be sent by the
Bank or through Registrar and Share Transfer Agents viz. MCS
Limited, within 30 days from the date of declaration of dividend
on their registered addresses.

6. +nk/+nEi

6.

a)

as Beneficial Owners as at the close of business hours


on Saturday, 14 th May, 2011 as per the lists to be
furnished by NSDL/CDSL in respect of the Shares held
in electronic form and

b)

in the Register of shareholders as on Saturday, 14th May,


2011 after giving effect to the valid transfer requests
received from the shareholders holding shares in physical
form, before close of business hour on 14-05-2011.

The shareholders who have opted for NECS credit of their


dividend will be paid dividend through NECS by directly
crediting the dividend amount to their Bank account as per
their ECS mandate. In case of failure/ return of NECS the
dividend warrants will be issued to the respective shareholders.
The payment of Dividend is subject to necessary approval from
Govt of India.
The dividend payment date will be 28th June, 2011.

EE E{x (={G E +Vx + +ih) +vx, 1970


E v 10 E +x y=t Ji +ii E M< E<
vx V B +ih E iJ i E +v i
+nk/+nEi i i < E{x +vx 1956 E v
205(1) E +iMi l{i xE I + Ih xv
+ii E VBM*

UNPAID/UNCLAIMED DIVIDEND

As per section 10B of Banking Companies (Acquisition and


Transfer of Undertakings) Act,1970 any money which is
transferred to unpaid dividend account and remains unpaid/
unclaimed for a period of seven years from the date of such
transfer shall be transferred to Investor Education and
Protection Fund established under section 205C (1) of the
Companies Act,1956.

inx 2002-03 + =E n E , <x +nk


Ji +ii EB Vx E iJ i E n
xE I + Ih xv +ii rfUY stYkd*u

Accordingly, the dividend for the year 2002-03 and onward


will be transferred to Investor Education and Protection Fund
after seven years from the date on which it has been transferred
to unpaid dividend account.

Vx vE x k 2009-10 iE +{x E n x
E ni =x +xv E V] + ] BV], .
BB ]b E { v n(n) nJ E*

Shareholders who have not claimed their dividend upto the


financial year 2009-10 are requested to lodge valid claim(s)
with Registrar and Transfer Agent, M/s MCS Ltd.

7. +l xx <C]xE CM : (Bx<B)
i E E +vn

7.

7.1 ] E E{]-{h xEnEh xE E I Ex E


=q n +xv E V E E u
Pi E Vi i V { xEnEh i bbz
] V Ex Si E E Ji J (S/Si),
E E x + J E =J E*

BANK MANDATE FOR DIVIDEND OR NATIONAL


ELECTRONIC CLEARING SERVICE (NECS)

7.1 In order to protect the investors from fraudulent


encashment of warrants, the members are requested to
furnish their Bank Account Number (Current/Savings),
the name of the Bank and Branch where they would like
to deposit the dividend warrants for encashment,
whenever dividend is declared by the Bank.

<x h E ] E SE { x E l-l
pi E VBM iE <x ] E vE <i E +x
H u x x V E*

These particulars will be printed on the cheque portion of


the Dividend Warrant besides the name of the
shareholders, so that these warrants cannot be encashed
by anyone other than the shareholder.

={H h |l / BE vE u v fUtufUt;t li
+ih BVx] E |ii E stYkdu V tu mkgt, J MB
E J, bM E h +n n VBM*

The above mentioned details should be furnished by the


first/sole holder, directly to the Share Transfer Agents at
Kolkata, quoting the folio number, number of Shares held,
details of the holdings etc.

7.2 E <C]xE v E Mix i E E vE


E Bx<B v ={v E * Bx<B E v
vE E E Ji v V Ex i
vE E Ji ExpEi EM x (B) J
+ Bx<B v E J x SB*

7.2

+i: <C]xE { Jx vE +xv


E |{i x E +{x-+{x E Ji v V
Ex i +{x b{V] {]{] (b{) +{x E Ji
E +tix E *
iE { Jx vE +{x E Ji v
V E V] B ]x BVx] . BB . EEi
u |{i Ex E B |l/BE vE u
vi iIi <B b] |ii E Ei *

The Bank is offering the facility of NECS to the


shareholders of the Bank for payment of dividend through
electronic mode. For credit of dividend directly to the
Bank account of the shareholders through NECS the Bank
Account of the shareholder should be with a Centralized
Banking Solution (CBS) and NECS enabled Branch of
Bank.
The shareholders holding shares in electronic form are
therefore requested to get their Bank Account updated
with their Depository Participants (DPs) for receiving the
dividend by direct credit in their Bank Account.
The shareholders holding shares in Physical form may
submit the ECS mandate duly signed by the First/Sole
holder for receiving the dividend by direct credit in their
Bank Account to Registrar and Transfer Agent M/s MCS
Ltd, Kolkata.

8. E E E xnx +xi: b]<z (b])


{ E Vx :

8.

u n M xn E +xh E E E
xnx b] { Ex xE E B +x *

COMPULSORY TRADING OF SHARES OF THE BANK


IN DEMATERIALISED (DEMAT) FORM
Pursuant to the directive given by SEBI, trading of our
Bank Shares in Dematerialized form has been made
compulsory for all investors.

E E E b]<Vx i E x xx C]
b{V] . (Bx.B.b.B.) + ] b{V] V (<b)
. (.b.B.B.) E l VEi E{x E { E E *

The Bank has entered into an agreement with National


Securities Depository Ltd. (NSDL) and Central Depository
Services (India) Ltd. (CDSL) as an issuer Company for
dematerialization of Banks Shares.

10

b]e<Vx i +xv rv; b{V] M E v


V] + +ih BVx] E V V Ei *

Request for dematerialization may be sent through


respective Depository Participants to our Registrar and
Share Transfer Agent.

9. +n
+n E h xxx :
i)

ii)

iii)

01.04.2010 E lli E/+n

9. UNCLAIMED SHARES
The details of unclaimed shares are as under:
i)

4461

on 01-04-2010

2010-11 E n x l E Ji + i i

335

ii)

31.03.2011 E lli E/
+n

iii)

Shares outstanding/unclaimed as
-

Shares claimed and transferred to


Beneficiary account during the year 2010-11

4126

335

Shares outstanding/unclaimed as
on 31-03-2011

E/+n E v ivE { VV u n
EB Vx iE E M M*

4461

4126

The voting rights in respect of the unclaimed/outstanding


shares will remain frozen till the claim by the rightful owner.

10. ;wtlvt fUe r;gt &


NughvhfUt fUtu mqra; rfUgt st;t ni rfU JtrMofU rhvtuxo fUe r;gt
JtrMofU ytb ciXfU :t vh rJ;rh; lne fUe stYkde y;& Nugh
vE mu +xv ni rfU Ju E {] E +{x |i +{x l
E +B V =x E u =xE {VEi {i { V M< *

10. COPIES OF BALANCE SHEET


Shareholders are advised that copies of the Annual Report
will not be distributed at the venue of the Annual General
Meeting and hence shareholders are requested to bring their
copies of the Annual Report, which are mailed by the Bank to
them at their registered addresses.

11. vE E EB :

11. SHAREHOLDERS QUERIES

nb mt;t ntude n vE i +{x EB |ii E


iE E E =xE | =k nx +x *

It will be appreciated if shareholders submit their queries, if


any, sufficiently in advance to facilitate effective response from
the Bank.

12. +ih BVx] E l {jS :


vE +xv E +{x {VEi {i E |E E
{ix x, +ih/]x i +xv Ex + Mix
vi E B E E V] + +ih +Ei
E rll {i { {E E*

12. COMMUNICATION WITH SHARE TRANSFER AGENT


Shareholders are requested to approach the Registrar and
Share Transfer Agent of the Bank, to intimate changes, if any,
in their registered address, lodge transfer/transmission request
(s) and the matters related to payment of dividends at the
following address:-

M/s MCS Limited (Unit: Allahabad Bank)

0 BB ]b (x]-<n E)
77/2B, W b
EEi - 700 029
n : 033-2454-1892, 033-2454-1893
C : 033-2454-1961
<- : allahabadbank.grievance@yahoo.co.in

77/2A, Hazra Road


Kolkata-700029
Tel : 033-24541892, 033-24541893
Fax: 033-24541961
E-mail: allahabadbank.grievance@yahoo.co.in

13. +x<x VxE /Ei E B E E vE bu0


BB ]b E <] www.mcsdel.com { M<x E Ei il +{x VxE /Ei E {VEh
i <x] { CE E Ei *

13. For on line queries/grievance, shareholders of the Bank


may login on the website of M/s MCS Limited i.e
www.mcsdel.com and click on investor services to register their queries/grievance, if any.

11

14. vE E ii + | |nx Ex E =q
<n E x +{x |vx E, EEi BE xE
Ei EI E l{x E * vE + xE E
|E E i i xxJi {i { < EI {E l{i
E Ei :

14. In order to facilitate quick and efficient service to the shareholders, Allahabad Bank has set up Investors Grievances
Cell at its Head Office, Kolkata. Shareholders and investors may contact this Cell at the under mentioned addresses for any assistance:

|vE
( B ), B + B +x{x +vE
<n E |vx E,
2 xiV b, EEi - 700001
n J - 033-2242 0899
C x. 033-2210 7424
<- - gmfa@allahabadbank.in

E{x S
M B xE Ei xh EI
|vx E
2 xiV b, EEi - 700001
n J - 033-2242 0878
C x. 033-2210 7424
<- - investors.grievance@ allahabadbank.in
The Company Secretary
Share Deptt. & Investors Grievance Cell
Head Office
2, Netaji Subhas Road, Kolkata- 700 001
Telephone No.033-22420878
Fax No. 033- 22107424
Email-investors.grievance@ allahabadbank.in

The General Manager (F&A), CFO & Compliance Officer


Allahabad Bank, Head Office
2, Netaji Subhas Road,
Kolkata - 700 001
Telephone No. 033-2242 0899
Fax No. 033-2210 7424
E-mail - gmfa@allahabadbank.in

15. +x Sx

15. OTHER INFORMATION

vE E{ x] E E ` E E< ={/E{x
ii x E VBM*

Shareholders may kindly note that no gift/coupon will be


distributed at the meeting.

xnE b E +n
lx : EEi
nxE : 02-05-2011

By order of the Board of Directors

(V.{. n+)
+vI B |v xnE

Place : Kolkata
Date : 02-05-2011

12

(J. P. Dua)
Chairman & Managing Director

<n E

ALLAHABAD BANK

xnE E {]
+| 2010 S 2011

DIRECTORS REPORT
APRIL 2010 TO MARCH 2011

xnE b E 31 S 2011 E {i i E E J{Ii


Jh i xnE E {] |ii Ei B |zi
*

The Board of Directors has pleasure in presenting the


Directors Report along with the audited Statement of Accounts
of the Bank for the year ended 31st March 2011.

|vx SS B h
{E +lE {o

MANAGEMENT DISCUSSION AND ANALYSIS


MACRO ECONOMIC ENVIRONMENT

E k E] E =k | E x + |vx E
Eh k 2010-11 BE V] + Sxi{h *
< E] E +i Ei E -|< Ij il {E
k V < + < E] E n E +l-l
U MB V +ii: {h E +lE E] =i{z +*
i +l-l = n iE | V iE +i]
k V { + x nx E v +ll
r l*

FY 2010-11 has been a complex and challenging year due to


absorption and management of after effects of global financial
crisis. The crisis had its beginnings in the developed worlds
subprime sector & broader financial markets and this contagion
spread to the rest of the world economy, turning into a fullblown global economic crisis. Indian economy also became
affected to the extent it was coupled with global economy both
through trade and exposure to international financial markets.

E P]xG

GLOBAL DEVELOPMENT

+<BB E +x 2011 Vb{ r 4.5% x E x


V 2010 E 5% { E * =zi +ll+
+ E +ll+ 2011 iE Vb{ E r
G: 2.5% + 6.5% x E x * =i V Vi
] +lE +v ii + {h{ M iV < i
E Ei E {< { M< il i V *

As per IMF, the World real GDP growth is expected to be about


4.5% in 2011 down modestly from 5% in 2010. Real GDP
growth in advanced economies and emerging & developing
economies is expected to be at about 2.5% and 6.5%
respectively in 2011.The strong macroeconomic fundamentals
in emerging market and consequent boost in demand is an
indication that recovery is complete and expansion is under
way.

=zi +ll+ 2011 b<x pi 2% E x


E +xx M M * Exi =i < + E
+ll+ pi E n g + 2011
pi 7% E xE] x E +xx M M *

In advanced economies, headline inflation is projected to be


below 2% in 2011 but in emerging and developing economies,
inflation pressure is mounting and forecast sees headline
inflation at close to 7% in 2011.

{U E nx E +ll v + Exi <E


l-l Ei VM g* =i V
+ll+ E x +M |E E Sxi l* { VE
Ex + pi E x Ex i =SS V n E Vn
Ij =i{n E xB Jx + n +l {VMi
+i =i{z |hMi VJ Sx E B {VMi xjh*
=i +ll+ =SS i E x + +ll
=Oi E { Ei {B MB *

There was recovery in the global economy during last year


but at the same time unemployment increased in developed
world. Emerging market economies had different challengesfirst fiscal consolidation and to maintain output at potential
despite higher interest rates to counter inflation & second,
capital controls to avoid systemic risk stemming from volatile
capital inflows. High inflationary expectation and traces of an
early sign of overheating of the economy were found in
emerging economies.

P P]xG

DOMESTIC DEVELOPMENT

i +ll x k 2010-11 +x =i +ll+


E ix +{IEi i Ex{nx n * Vni r
+ ii k Ex 2011 i +ll E E

Indian economy has performed relatively better in FY 2010-11


compared to other emerging economies. Robust growth and
steady fiscal consolidation have been the hallmark of the Indian

13

* +lE E E Ij =U E l {E * 201011E nx i E E P =i{n (Vb{) gE 8.6%


M <E l-l E E 5.4%, =tM 8.1% +
Ij E 9.6% * +ll x + P nx
Z]E E x =Jx +iE Ci E |nx E +
E =l-{l E | E i{E Z *

economy in FY 2010-11.Economic growth has been broad


based with a rebound in the agriculture sector. The Gross
Domestic Product (GDP) of India has grown by 8.6% with
agriculture growth at 5.4%, industry at 8.1% and services at
9.6% during the Year 2010-11. Our economy has shown
remarkable resilience to both external and domestic shocks
and successfully withstood the ripple effects of the global
turmoil.

Si + x =SS r E E E EE x*
E P Si (VbB) S V Ei Vb{ |ii E
{ 2008-09 32.2% E ix 2009-10 33.7% *
2009-10 P Si E E n 23.5% * E {V
xh (x) n 2008-09 34.5% E {I 2009-10
36.5% *

The high growth in the savings and investment has been the
growth enabler in recent years. Gross Domestic Saving (GDS),
as percentage of GDP at current market prices has been 33.7%
in 2009-10 as compared to 32.2% in 2008-09. The growth in
household saving rate has been 23.5% in 2009-10. The rate
of Gross Capital Formation (Investment) was 36.5% in 200910 as against 34.5% in 2008-09.

iE x, i+ E =SSi Ei + E i
V +li Sxi E * 2010-11 E +
+| 2010 11.0% E n +E pi <*
+| V< 2010 iE n +E x x E n x
2010 P]E 7.5% M<* Ex |k =] M< +
pi gE n, 2010 9.41%, Vx, 2011
8.23% + , 2011 8.31% M<* < E Ij
xn r x E Vn pi =SS Jt Ei E Eh
g B i { x * lE SEE { +vi pi
S 2011 8.98% E =SSi i { x * iE
x r E J { +{i E Ei E n V
Ei *

Inflationary expectation, higher commodity prices and volatility


in global commodity markets have been a cause of concern.
The year 2010-11 started with a double digit headline inflation
of 11.0% in April 2010. After remaining in double digits from
April to July 2010, it came down to 7.5% in November 2010.
But the trend reversed with inflation moving up again to 9.41%
in December2010, 8.23 % in Jan2011 & 8.31 % in Feb2011.
In spite of spectacular growth in Agriculture this year, inflation
remained at elevated level due to high food prices. The inflation
based on WPI continued at higher level of 8.98% for March
2011. The spurt in inflationary expectation could be attributed
primarily to supply constraints.

V iE +ll E Ij E v , 2010-2011 E nx
xi E Mi v * Exi E v + B< n E
l { r E Eh xi g* VE {h{
{ P] E +* S 2011 E {i E nx xi
37.5% E r nV Ei B 245.9 x B b iE
{S M V +{I +vE * < +v E nx +i
350.3 x B b VE {h{ S 2011
i { P] E +Ec P]E 104.4 x B b
M*

So far external sector of the economy is concerned, during


2010-11 the imports have been slow but exports have
increased in view of global recovery and growth in trade with
Asian countries as a result of which trade deficit is set to narrow.
Exports for the year ending March 2011 touched US$ 245.9
billion registering a growth of 37.5% exceeding expectations.
Imports for the same period stood at US$ 350.3 billion; and
resultantly the trade deficit figure has come down to US$ 104.4
billion for March 2011.

EM + k Ij P]xG

BANKING & FINANCIAL SECTOR DEVELOPMENT

V n v xi v-v n +* 2010-11 pE
xi pi { xjh i xiMi n r E ={ E {
x * i V E u Mi n r Ex +
|h {i ii E E E li E Eh E x +{x
V + @h n E vi E*

There has been a gradual shift in the stance of policy on interest


rate. In 2010-11, the monetary policy stance has been one of
hiking the policy rates to tame inflation.. Banks have also
revised their deposit & lending rates on account of successive
rate hike by RBI and prevailing tight liquidity conditions in the
system.

i k V E <C] + n p V E
P]xG |i B* E x +{x vx Oh i V
|h{j E V {h + n nx r
nJ M< * { E xM iV +< CE Ji ii
{li E Si E{x x xv i E{E x+ E
i E *

Indian financial markets, particularly the equity and foreign


exchange markets were impacted by the global developments.
Banks resorted to Certificate of Deposits for their resource
mobilization which saw both increase in volumes and rates.
Issuances of CPs also increased as companies accessed
alternative avenues for funds, given the tight liquidity
conditions.

14

i E x +ll E @h ={v Ex J E
xx V J* hVE Ij E k vx E E |
E MM 60% E E { * n +v { E @h 25
S, 2011 E 21.4% E r E l gE . 3938659
Ec M V k 2011 i i W E E M-Jt
@h E 20% E +xxi I +vE * +xSi hVE
E E E V n +v { 15.8% E r <
+ < |E 25 S, 2011 E lli . 5204703
Ec E i { {S M*

Indian Banks continued to play a dominant role in providing


credit to economy. Banks accounted for nearly 60% of total
flow of financial resources to the commercial sector. On a
year-on-year basis, bank credit grew by 21.4% to Rs.3938659
crore as on March 25, 2011, which exceeded RBIs projected
non-food credit growth target of 20% for FY 2011. Aggregate
deposits of SCBs grew by 15.8% on year-on-year basis thereby
reaching a level of Rs.5204703 crore as on March 25, 2011.

2012 E xB

OUTLOOK FOR 2012

+M k 2011-12 +lE Miv +xE Eh E


= i { x x E x , V +| 2010 Mi
V n r + +ll n 2010 iE
n r +n* + Ei E k 2011-12
E P =i{n E r n 8.5% - 8.75% E S x E
x * 2011-12 V n r E Eh E E +{x
x V Vx n E x Ex {cM* B x E
2011-12 V E r n k 2010-11 +vE
M* 2011-12 EM =tM V r MM 17% + @h
r MM 20% x E x *

The economic activities in the next FY 2011-12 is expected to


sustain on more or less same level on account of multiple
reasons such as successive interest rate hikes since April 2010
and rising inflationary pressures since December 2010 in the
economy. We expect that GDP growth rate would be in the
range of 8.5-8.75% in FY 2011-12. Banks would continue to
face pressure on their net interest margin on account of rise in
interest rates in 2011-12. It is expected that deposits in the
year 2011-12 will grow at a higher rate than in the financial
year 2010-11. Deposit growth of around 17% and credit growth
of around 20.0% are expected in 2011-12.

<n E E Ex{nx
{SxMi {h

PERFORMANCE OF ALLAHABAD BANK


OPERATING RESULTS

J xnb E E Ex{nx xxEi h


|ii :

Banks performance in key business parameters is presented


below.

(< Ec )/(<in crore)


xnb/ Parameter
x / Net Profit
{SxMi / Operating Profit

S 09
Mar09

S 10

(%)

S 11

Mar10

Growth (%)

Mar11

Growth (%)

768.60

1206.33

56.95

1423.11

17.97

1901.15

2548.55

34.05

3054.58

19.86

1328.45

1972.00

48.44

2894.34

46.77

(%)

]bM E UcE {Sx


Operating Profit Ex. Trading Profit

|vx B +EEiB
Provisions & Contingencies

1132.55

1342.22

18.51

1631.47

21.55

E + / Total Income

8506.65

9885.10

16.20

12385.10

25.29

Total Expenditure (Excl. Prov.)

6605.50

7336.55

11.07

9330.52

27.18

V |b / Interest Spread
E V / Total Deposits
E +O / Total Advances
E / Total Business
E x / Gross Investments

2158.67

2650.48

22.78

4022.47

51.76

84971.79

106055.75

24.81

131887.16

24.36

59443.40

72437.31

21.86

94570.93

30.56

144415.19

178493.06

23.60

226458.09

26.87

30081.35

38680.43

28.59

43544.84

12.58

E (|vx E UcE)

15

Ex{nx ]iB

Performance Highlights

E E E {U E . 1,78,493 Ec E
{I n +v { 26.87% E r ni B .
2,26,458Ec M *

Total Business of the Bank increased to Rs. 2,26,458


crore as against Rs. 1,78,493 crore in previous year
showing a YOY growth of 26.87 %.

{Sx {U E .2,549 Ec E {I n
+v { 19.86% E r ni B gE . 3,055
Ec { {S M*

Operating Profit surged to Rs. 3,055 crore as against


Rs. 2,549 crore last year showing a YOY growth of
19.86%.

x {U E .1,206 Ec E {I n
+v { 17.97% E r ni B 31.03.2011 E
{i k E nx gE .1,423 Ec M*

Net Profit rose to Rs. 1,423 crore during the Financial


Year ending 31.03.2011 as against Rs. 1,206 crore last
year showing a YOY Growth of 17.97 %

x V Vx (Bx+<B) {U E 2.94% E {I
gE S 2011 E {i k E nx 3.38%
M*

Net Interest Margin (NIM) increased to 3.38 % during


the Financial Year ending March, 2011 as against 2.94%
last year.

E E V 1,06,056 Ec gE 1,31,887
Ec M<* n +v {, E V 24.36%
E r < *

Deposits of the Bank went up to Rs. 1,31,887 crore from


Rs. 1,06,056 crore last year. Year-on-Year basis, Total
Deposits grew by 24.36 %.

E @h .72,437 Ec E {I gE .94,571
Ec M* n +v { E @h 30.56%
E r <*

Gross Credit surged to Rs. 94,571 crore from Rs. 72,437


crore last year. Year-on-Year basis, the Gross Credit increased by 30.56 %.

@h V +x{i {U E 68.93% E {I gE S,
2011 E lli 72.18% M*

Credit Deposit Ratio rose to 72.18% as at March, 2011


end as against 68.93 % last year.

k E nx ] @h 29.23% E r E l
.10,082 Ec gE .13,029 Ec M*

Retail Credit grew to Rs.13,029 crore from Rs. 10,082


crore last year, constituting an increase of 29.23 % during the financial year.

M-xv M V + {U E .697Ec E {I
S, 2011 E {i k E nx .857Ec *

Non-Fund Non Interest Income during the Financial Year


ending March, 2011 stood at Rs. 857 crore as against
Rs. 697 crore last year.

Capital Adequacy Ratio stood at 12.96 % as on


31.03.2011 as against the stipulated norm of 9%.

{V {{ii +x{i xvi 9% E xnb E {I


31.03.2011 E lli 12.96% l*
S 2011 +i E +O E Bx{B + x
+M x Bx{B +x{i G: 1.74% + 0.79%
l*

Gross NPA to Gross Advances and Net NPA to Net Advances Ratios stood at 1.74% and 0.79% as at March,
2011-end respectively.

|vx EV +x{i 75.67% *

Provision Coverage Ratio stood at 75.67 %.

{V B +Ii xv

CAPITAL AND RESERVES

i E E <C] E +vx +]x E Eh lli


31.03.2011 E E E |nk {V . 446.70 Ec gE
. 476.22 Ec M<* E +i +Ii xv + +v
lli 31.03.2010 E . 6306.25 Ec fE .
8031.17 Ec MB*

E E xnE b x i E E +xnx E +vvx 60%


E n E Ph E +li .10/- E |i <C]
{ .6.00*

Due to preferential allotment of equity to Government of


India the paid-up capital of the Bank increased from Rs
446.70 cr to Rs.476.22 crores as on 31.3.2011. The reserves
& surplus went up to Rs.8031.17 crores as at end of this
year from Rs..6306.25 crores as on 31.03.2010.
Dividend
The Board of Directors of the Bank has recommended a
dividend @ 60 % i.e. Rs. 6 per equity share of Rs.10 each
subject to approval by the Govt. of India.

16

k {h /

FINANCIALS

E E i{h +x{i xS nB MB

/ Important ratios of the Bank are depicted below;

xnb / Parameters

31.3.09

31.3.10

31.3.11

13.11

13.62

12.96

8.01

8.12

8.57

5.10

5.50

4.39

2.54

2.54

3.31

6.67

5.99

5.85

9.62

8.68

9.19

6.62

5.97

5.83

Average Yield on Advances (%)

10.88

10.57

10.50

|i +Vx (.) / Earnings per Share (Rs.)

17.21

27.01

31.85

131.00

151.17

178.64

0.90

1.16

1.11

+i x]l { |i (%) Return on Average Net Worth (%)

16.49

22.21

21.04

|vx EV +x{i (%) Provision Coverage Ratio (%)

76.45

78.95

75.67

x Bx{B / Net NPAs (%)

0.72

0.66

0.79

|i ES (.J) / Profit per Employee (Rs. in lacs)

3.76

5.76

6.70

|i ES =i{nEi (.J ) Productivity per Employee (Rs. in lacs)

706

845

1063

{V {{ii +x{i / Capital Adequacy Ratio (%)

V / Of which
] II (%) / Tier II (%)

I Tier I (%)

+i Et xv |b (%)
Spread to Average Working Fund (%)
V E +i Mi (%)
Average Cost of Funds (%)

xv { +i + (%)
Average Yield on Funds (%)

V E +i Mi (%)
Average Cost of Deposits (%)

+O { +i + (%)

|i (.) / Book Value per Share (Rs.)


+i { |i (%) / Return on Assets (%)

E B JB

OFFICES & BRANCHES

E x 2010-11 E nx 129 x< JB J V lli


31.03.2011 E J+ E E J 2416 M< V 993
Oh, 454 +v-, 508 B 460 xM + BE
n J *

The Bank opened 129 new branches during 2010-11, taking


total branches to 2416 as on 31.3.2011, with 993 rural, 454
semi-urban, 508 urban, 460 metropolitan branches and 1
foreign branch.

V Oh
E E E V lli 31.03.2011 E 24.36% E
=Jx r ni B .131887 Ec M<* E Mi
V lli 31.03.2011 E 20.69% gE .44156
Ec M< V E V E 33.70 % *
E x E Mi V Oh { V n + E nx
Si E V + S Ji V Oh +x SB MB*
Si E V Oh +x ( 01.09.2010 31.03.2011) E
nx 1.3 x +vE xB Si Ji J MB + Ji
. 2663.37 Ec E V Oi <*

DEPOSIT MOBILISATION
Total deposits of the Bank showed a significant growth of 24.36
% to Rs. 131887 crores as on 31.3.2011. Low cost deposits
grew by 20.69% to Rs.44156 crores as on 31.3.2011,
constituting 33.70 % of aggregate deposits.
Bank emphasized on low cost deposits mobilization and
observed saving deposits & CASA deposits mobilization
campaign during the year. During the SB mobilization
campaign (from 01.09.10-31.03.11), over 1.3 million new
saving accounts were opened and saving deposit mobilized
to the tune of Rs.2663.37 crores.

17

@h +xVx

CREDIT DEPLOYMENT

E E E +O lli 31.03.2011 E 30.56% gE


.94570 Ec M* @h - V +x{i (E) Mi E
68.93% E {I 72.18% * < +v E nx E x
|h +{x V + 2.15% g E 2.23% E *
31.03.2011 E E E SE =v n ({B+) 13.75%
* x V {o E +x{ +O { |i 2009-10
E 10.57% E {I 2010-11 E nx 10.50% *

Total advances of the Bank went up by 30.56% to Rs.94570


crores as on 31.3.2011. Credit-deposit ratio (gross) stood at
72.18 % as against 68.93% last year. The Bank increased its
market share in the system to 2.23 % from 2.15% during the
period. The Benchmark Prime Lending Rate (BPLR) of the
Bank was at 13.75 % on 31.03.2011. Yield on advances
stood at 10.50 % during 2010-11 as against 10.57 % during
2009-10 in line with the general market scenario.

+x{V +i (Bx{B) E |vx

NON-PERFORMING ASSETS (NPAs) MANAGEMENT

E x +x{V +i E E +ii i n * E x
2010-11 E nx +{Ji @h i +x{V +i
.929.16 Ec E E VE 2009-10
.681.35 Ec l* 31.03.2011 E E E E Bx{B +
x Bx{B G: .1674.92 Ec + .736.37 Ec l*
E +O + x +O E Bx{B il x Bx{B
E |ii G: 1.74% + 0.79% * E E |vx EV
+x{i 75.67% *

The Bank attached great importance on recovery of nonperforming assets. The Bank has recovered Rs 929.16 cr from
non performing assets including written off debts during 201011 as against Rs 681.35 cr in 2009-10. The Gross & Net Nonperforming assets of the Bank stood at Rs. 1647.92 crores &
Rs. 736.37 crores as on 31.03.2011 The Gross & Net NPAs
as percentage to gross advances & net advance was 1.74 %
& 0.79 % respectively. The provision coverage ratio of the Bank
stood at 75.67%

VE EM

SOCIAL BANKING

|lEi Ij @h 31.03.2010 E lli .24279


Ec g E 31.03.2011 E lli .30764 Ec
M + < |E <x -n- +v { .6485
Ec (26.71%) E r nV E* E x S 2011 E
lli BBx |I@ 42.96% E ={v E
] I (40%) E { E *

Priority Sector Credit grew from Rs.24279 Crore as on


31.03.2010 to Rs.30764 Crore as on 31.03.2011,
registering an absolute YOY growth of Rs.6485 Crore
(26.71 %). the Bank has exceeded the National Goal
(40.00%) of PSC to ANBC by achieving 42.96 % as on
Mar11.

E @h E S 2010 E lli .11567 Ec


g E S 2011 E lli .13387 Ec M*
S 2011 E lli BBx E @h E |ii
18.20% l, < |E ] I 18% E { E
M*

Agriculture Credit outstanding increased from Rs.11567


Crore as on March 2010 to Rs.13387 Crore as on March
2011. The Agricultural advance to Adjusted Net Banking
Credit was 18.20% as on March 2011, thereby achieving
the National goal of 18%.

|iI E @h E S.2010 E lli .8340


Ec g E S 2011 E lli .9808 Ec
M* E x S 2011 E lli 13.70% E |{i E
BBx |iI E @h E ] I (13.50%) E
{ E *
BBB< Ij
l
E E BBB< @h =iE] Ex{nx i i E
]{i i |i {] |l {E |{i
+*
l
<G B P =t(BB<) Ij E @h S 2010 E
lli .8188 Ec g E S 2011 E lli
.11990 Ec M Vx -n- +v { .3802
Ec(46.44%) E x{I r nV E * S 2011 E

Direct Agriculture Credit outstanding increased from


Rs.8340 Crore as on March 2010 to Rs.9808 Crore as
on March 2011. Bank has exceeded the National Goal
(13.50%) of Direct Agriculture to ANBC by achieving
13.70% as on Mar11.

MSME Sector:

18

The Bank was awarded 1st prize for outstanding work in


MSME lending from Her Excellency Honble President
of India Smt Pratibha Patil.

Credit to Micro and Small Enterprises (MSE) grew from


Rs. 8188 Crore as on March 2010 to Rs.11990 Crore as
on March 2011, registering an absolute YOY growth of
Rs.3802Crore (46.44%). Share of Micro Enterprises to

lli E I + P =t I =t E +
50.68% E ={v Ei B ] I (50%)
E { E M* I, P B v =t (BBB<) Ij
E @h -n- +v { 47.21% E r ni B
31.03.2011 E lli .9771 Ec gE .
14384 Ec M*
<E +iH E x V]BB< E +iMi EB
MB {E H @h E {nM { i +vE n
* 31.03.2011 E lli V]BB< E +iMi
. 896.80 Ec E 26092 |i E E M
+ E 2010-11 E nx V]BB< E +iMi |i
E J E k Ex{nx Ex E E
{ = *

iE 1: |lEi Ij @h /

Micro & Small Enterprises has exceeded the National


Goal (50%) by achieving 50.68% as on Mar11. Credit
to Micro, Small & Medium Enterprises (MSME) increased
from Rs.9771crores to Rs.14384 crores as on
31.03.2011, showing a YOY growth of 47.21%.
l

Further the Bank has given thrust on credit delivery to


collateral free loans covered under CGTMSE. As on
31.03.2011, 26092 proposals have been covered under
CGTMSE amounting to Rs.896.80 crores and the Bank
has emerged amongst best performing Banks in terms
of number of proposals covered under CGTMSE during
2010-11

Table 1: Priority Sector Credit :

Ij/VxB

/ Sector / Schemes

|lEi Ij / Priority Sector Credit


V / Of Which
a) E / Agriculture
|iI / Direct
+|iI / Indirect
b) <G B P =t (BB<) / Micro & Small Entp.(MSE)
V / Of Which
I =t / Micro Enterprises
+x |. I. @ / Other PSC
2. EV M / Weaker Section.
1.

h 2 : +x{i (|ii ) / Table 2: Ratios (in percentage)


i{h +x{i /

/ March 2010

(.Ec )

(. Ec )

Amount
(Rs. crores)

Amount
(Rs. crores)

24279

30764

11567
8340
3227
8188

13387
9808
3579
11990

5091
4524
6150

6077
5387
7547

] I S

Important Ratios

National Goal

mbtgturs; x E @h |lEi Ij @h / PSC to Adjusted Net Bank Credit (ANBC)


Vi x E @h E @h / Agriculture Credit to Adjusted Net Bank Credit
E I B P =t I =t / Micro Enterprises to Total Micro & Small Entp.
mbtgturs; x E @h EV M E @h/ Weaker Section Credit to Net Bank Credit
l

EB MB xB =i{n/VxB
E x E +vi =tM E vx + E =i{n E
{ i i |lEi Ij @h E +iMi +xE
SxMi =i{n EB * < M x] E k{h
Vx, +gi (Ex BV]) i +E Cb Vx,
CxE B xM +n i bC]/bE |C]x E
k{h E Vx, B+</Exp E +l V E
xM/BV E l {]] E E +iMi Mn E xh
E Vx, V |Eh <E< E k{h E Vx*

/ March 2011

/March

/ March

2010

2011

40
18

41.29
18.68

42.96
18.20

50
10

62.25
10.46

50.68
10.54

New Products / Schemes launched:

The Bank has launched several structured products under


Priority Sector Credit to promote agro-based industries and
support trading of farm produce viz Scheme for Financing to
Rice Shelling Units,Allbank Liquid Scheme for Artiyas
(Commission Agents),Scheme for financing Doctors/Medical
Practitioners for Clinics/Nursing Homes, Scheme for
Construction of Godown under lease agreement with FCI/
Central Govt/ State Govt. Corporation /Agencies and Scheme
for Seed Processing Units.

19

I k l+ (BB+<) E E x

E u .218.54 Ec E 18 BB+< Ji
Ei EB MB* 31.03.2011 E lli <x E
.127.93 Ec l*
l

18 number of MFI accounts involving Rs.218.54 crores


has been sanctioned by Bank. As on 31.03.2011, there
is an outstanding of Rs.127.93 crores,

V i E i (BB)

E x BB VE E { ZJb V Ei
E E M V E +lE =ilx E B EM |
E xi Ex { nx V J , 2000 +vE
VxJ 1541 O E EM vB |nx Ex i
JE i E * B]B v BE < EM x
Si E M< V V 12 M E EM vB
|nx Ei * E x S BE E<x bM x S E
* E x - { BB E ` E +Vi E
+ BB E V E E i SS B EM { E
I E BE og S E { l{i E *
l

+Oh E Vx

Lead Bank Scheme


Under Lead Bank responsibilities in 17 districts( 13 in
Uttar Pradesh, 2 in Jharkhand and one each in Madhya
Pradesh and West Bengal) the Bank disbursed
Rs.1605.53 crores under District Credit Plan 2010-11
achieving 93.31% of the target.

Ij Mh E (++)

E u |Vi n Ij Oh E * BE =k |n
<n { Oh E E x + n v |n
n Oh E E x * <x nx Ij Oh E x
E @h Vx E +iMi 2010-11 E nx .1681.50
Ec E I E {I .1637.07 Ec ii E 97.36%
I |{i E * <x nx Ij Oh E x +{x
Ex{nx v E V Ji B 2010-11 E nx
. 79.20 Ec E E +Vi E* Si
2009-10 E nx .474.21 Ec E {I 2010-11
gE .553.42 Ec M*
l

State Level Bankers Committee (SLBC)


The Bank as SLBC convener, continued thrust on cocoordinating banking efforts for Economic upliftment of
state of Jharkhand in association with other banks
operating in the state and drew roadmap for providing
banking facilities to 1541 villages having population over
2000. A mobile banking van with ATM was also
operationalised to cover 12 villages in the state to provide
banking facilities. The bank also started one coin vending
machine at Ranchi. The Bank conducted meetings of
SLBC from time to time and converted the SLBC into a
strong forum to discuss and review banking initiatives
for the development of the state.

17 V 13 =k |n, 2 ZJb il v |n + {S
M E BE-BE V +Oh E ni E +iMi V
@h Vx 2010-11E +iMi .1605.53 Ec E @h
ii E I E 93.31% E *
l

Banks Exposure to Micro Finance Institutions (MFIs)

Regional Rural Banks (RRBs)


The Bank-sponsored two RRBs,one in UP namely
Allahabad UP Gramina Bank and the other in M.P.namely
Sharada Gramina Bank. The two RRBs cumulatively
disbursed Rs.1637.07 crores during 2010-11 under the
Annual Credit Plan against a target of 1681.50 crores
achieving 97.36% of target. The two RRBs continued to
improve their performance with an aggregate profit of
Rs.79.20 Crores during 2010-11. The accumulated profit
stood at Rs 553.42 Crores in 2010-11 as against
Rs.474.21 Crores during 2009-10.

k x
]E ] x, nni+ E v ,
B]BH < EM x + iE JB Jx
V z b E +{xi B +<] li k
x E +iMi E E 2000 + +vE VxJ
2618 O E ni { M V S 2012 iE
EM +=]] JE EM B |nx E Vx * E
u E nx 1046 M E I E {I 1054 M E
E Ei B BSBSb E v ] Eb u xnx
E M *

Financial Inclusion
Bank has been given the responsibility of 2618 villages
having population of 2000 and above where banking
services are to be provided by opening of banking outlet
by March2012 under ICT enabled Financial Inclusion
by adopting various models viz. Biometric Smart Card
solution through Business Correspondents, Mobile
Banking Van fitted with ATM, and opening of Brick &
mortar branches. During the year the Bank had covered
1054 villages against a target of 1046 villages
Transaction by Smart cards through HHD has
commenced.

E{] VE ni
E x BE Vn E{] xME E { VE Eh
+ E E |i +{x E Vii B V E ii

CORPORATE SOCIAL RESPONSIBILITY


The Bank, as a responsible Corporate Citizen, has
initiated several measures towards sustainable

20

E E n +xE ={ EB Vx EU
xxi :
k Ii + @h { Exp
k xnx E V]i+ +Mi Ex i i
vx + E nIi M E k I + @h
{ nx E =q E x + iE ""vx"" xE n
k Ii B @h { Exp J <x BE
EEi ({..) + n n (=.|.) li * 11 +
BB l{i Ex E E |Mi { *
Oh VM |Ih lx(+B<]+<)
Oh + + Ex E P =t l{i Ex
i E B Mn B |nx Ex E B E x
31.03.2011 iE 11 Oh VM |Ih lx
(+B<]+<) l{i EB * E x 2011-12 E nx
+Oh V 10 +x +B<]+< Jx E Vx
x< *

development of the society reflecting its concern for


social welfare and developments, some of which are as
under.
l

In order to provide financial education and credit


counselling to the people having limited resources and
skills to appreciate the complexities of financial dealings,
the Bank has so far opened two Financial Literacy and
Credit Counselling Centres christened Samadhan- one
at Kolkata (WB) and another at Banda (UP). Setting up
of another 11 more FLCCs is in progress.
l

Rural Self Employment Training Institute (RSETI)


Bank has so far established 11 Rural Self Employment
Training Institute (RSETI) up to 31.03.2011 to impart
training to the rural youths and Farmers for setting up of
small business enterprises with hand holding and escort
services. Bank has planned to establish another 10
RSETIs in rest of the lead district during 2011-12.

+i] EM :
E +{x +i] 56 |vEi/xq] J+ E
v Si Ei Vx 5 +xi] JB *
31.03.2011 E lli E E xi @h . 2911.23 Ec
l* E xiE E @h | gx i En =` * z
Exp { xiE E l `E +Vi E Vi *

INTERNATIONAL BANKING
The Bank carries out its International business through its
56 authorised/designated branches, which includes 5
international branches. Export credit of the Bank as on
31.03.2011 stood at Rs.2911.23 crore. The bank is taking steps
to increase the credit flow to exporters. Exporters meets are
arranged at various centers

n ={li
l
E E MEM BE n J * MEM J E
31.03.2010 E .1128 Ec E {I 31.03.2011
E gE .3284 Ec M * MEM J x 200910 E .12.63 Ec E {I 2010-11 E nx . 19.01
E +Vi E*
l

Financial Literacy And Credit Counselling Centres

Overseas presence

E E xZx, Sx BE |ixv E il xE
nxn E +x E {hEi J Jx i {j * E
n + +vE JB Jx E x+ E {i M
*

] @h
Ei { vx Epi Ei B +{x OE E =iE]
|nx Ex E =q ] @h i E E n 27
+ B 75 ] EM ]E E v {i @h
{nM Sx * S 2011 E lli ] @h E +iMi
E E .13028.96 Ec l VE S, 2010 E
lli . 10082.14 Ec l* E nx 29.23%
E r ni * 2010-11 E nx ] @h E +iMi
ih Mi k E nx .3148.97 Ec E {I
.3868.63 Ec V 22.85% E r ni * 27 Exp
<]x] E v ] @h E +x<x +nx EB MB
* E x x E k{h i +xE |i`i +]<
xi+ E l Zi E +i { n * E x =SS x

The Bank is having one overseas branch at Hong Kong,


The business of the Hong Kong branch has increased
from Rs 1128 cr as on 31.03.2010 to Rs3284 cr as on
31.03.2011. The Hong Kong branch has earned a profit
of Rs 19.01 cr in 2010-11 as against a profit of Rs 12.63
cr during 2009-10

The Bank is also having a Representative office at


Shenzhen, China and in terms of regulatory guidelines;
the Bank is eligible to open a full fledged branch. The
Bank is exploring the possibilities of opening more
overseas branches.

RETAIL CREDIT
In order to deliver outstanding service to our customer with
focused attention in a specialized manner, the Bank has
dedicated delivery channel for Retail Lending through its 27
CRBBs & 75 Retail Banking Boutiques (RBBs) across the
country. Total outstanding under Retail Credit as on Mar 2011
stood at Rs. 13028.96 Crore as against Rs. 10082.14 Crore
as on Mar2010. This shows an increase of 29.23 % during
the year. Disbursement under Retail Credit during 2010-11
was Rs. 3868.63 Crore as against Rs.3148.97 Crore during
2009-10 registering a growth of 22.85 %. Online application
of Retail Loans through INTERNET at 27 centers was
introduced. Bank has finalized tie-up with a number of reputed
Automobile manufacturers for financing their vehicles. Bank

21

{k H (BSBx+<) i '| + k Vx'


+ =x M`x/l+ E ES E B '-2' Vx
E VxE ix J+ E v Ei i *

has launched Premium Housing Finance scheme for High


Net worth Individuals (HNIs)andSARAL- 2 for the employees
of the Organizations/Institutions, where the salaries are
disbursed through Banks branches.

E +vi +
ii {I =i{n (]{{) (Vx, M-Vx, S+ b)
+ Mi k E .17.57 Ec gE k
2010-11 E nx . 19.69 Ec M< V 12.07% E r
ni * E E E{] vh Zn l x
{ x E E OE + ES i BE l
xi (x { E {h l ES) i E * xi
SEi Mi i r Ih |nx Ex E B V
H + { E B ={v *

FEE BASED INCOME


The income from the Third Party Product (TPP) Business
(Life, Non Life, Mutual Fund) grew by 12.07 % to reach at Rs
19.69 Crores during FY 2010-11 from Rs 17.57 Crores in the
last FY. Banks corporate General Insurance partner Universal
Sompo General Insurance Company has designed a special
health insurance policy (Universal Sompos Sampoorna
Swasthya Kavach) for the customers and the employees of
the Bank. The policy is for the protection against spiraling
medical cost and available for individuals & families.

VJ |vx
E x 2010-11 i @h VJ i xEEi +vh, V
VJ i +vi +v +vh + {Sx VJ i
xn EiE +vh E +iMi {V {{ii +x{i E Mhx
i -** xnb E Exi E *
OE

RISK MANAGEMENT
The Bank has implemented Basel II norms for calculation of
Capital Adequacy Ratio under Standardized Approach for
Credit Risk, Modified Duration Approach for Market Risk and
Basic Indicator Approach for operational Risk for the year
2010-11.
CUSTOMER SERVICE

""b E OE i"" =iE] OE E B |ir *


i W E u M`i E + v |G B Ex{nx
J{I i ({{B{B) E Z E Exx E E
u =SS |lEi n M< * E Ei H { E +n
li x i Mi | E *

The Banks Customer Service Committee of the Board is


committed towards excellence in customer service. The
suggestions of the Committee on Procedures and
Performance Audit on Public Services (CPPAPS), constituted
by Reserve Bank of India, are accorded top priority for
implementation in the Bank. The Bank is making constant
endeavour to strive for and achieve an ideal situation of
complaint free environment.

+{x OE E VxB + B] x =xbM


E x i V E E nxn E +x +{x OE E
VxB/B] x =xbM xnb vi ii xiMi nxn
+{xB * {BBB 2002 ={v E +x +x h
+li xEn xnx {] (]+), nMv xnx {] (B]+)
+ V p {] |ii Ex v nxn - {
V EB MB J+/E E h xvi
{ |ii Ex i O x M

KNOW YOUR CUSTOMER & ANTI MONEY LAUNDERINGS


The Bank has adopted the comprehensive policy guidelines
on Know Your Customer/ Anti Money Laundering Norms in
consonance with the Reserve Bank of India directives. The
guidelines for submission of mandatory returns viz. Cash
Transaction Reports (CTRs), Suspicious Transaction Reports
(STRs) and Counterfeit Currency Reports as per the provisions
of the PMLA, 2002 have been issued from time-to-time and
all branches/offices have been sensitised on submission of
these return within the prescribed time limit

Sx |tME
l E x lli 31.03.2011 E +{x J+ B E
Exi E *
l + E b Vx]M J+ E v OE
i +x<x ] @h |M B Ei v <]x]
<] { ={v *
l <]x] <] http://www.allahabadbank.in ix +
+li xn, +OV + M ={v *
l

INFORMATION TECHNOLOGY

E{] + HMi nx OE i +]VB/Bx<B]


xv +ih v E l <]x] EM E M< V
01.01.2011 G *
B x]E E l bBB {Bx ExC]] E v
22

As on 31.03.2011, the Bank has implemented CBS in


all its branches

Online Retail Loan processing and sanction to the


customers of the lead generating branches of CRBB
has been made available in the intranet site.

The Internet Website http://www.allahabadbank.in is


available in 3 languages i.e. Hindi, English and
vernacular language Bengali.

The Internet banking for both the individuals and for


corporate customers with RTGS/ NEFT fund transfer
facilities has been started and is live since 01.01.2011.

Mobile banking Van with ATM through CDMA VPN

l
l

l
l
l

B]B H < EM x nE, ZJb, i{


b E +iMi E J + x< n b E +iMi
J J E M<*
< EM +{x E ] Vx {Ih Ij i{E
+xVi E M *
<// E nxn E +x <VB] E {
i M E M * E E 183 |vEi JB
< {Vx Mi E * E ni+ i +|iI
E E <-Mix (<-<VB]) E v + E M<
+ v J+ E OE i ={v *
v <]x] EM { <-Mix E v ={v *

connectivity with CBS network has been introduced at


Dumka, Jharkhand,at Kasraila branch under Sitapur Zone
and at Khaira branch in New Delhi Zone.

E x Bx+(] Vvx Ij) n E +iMi SE


]Ex |h E Exi E * Sz< Ob ]B
E Exx |Mi { *
BBB B] {Si + |inx +ix 31000
BBB B] Vx] EB Vi *
+]VB/Bx<B] E 2372 J+ < E M
*
B< BCSV B <x V . E l M`vx
EE E x ZZ] i +E |h i BC| x B x
O xE n =i{n EB *

xIh B J{I

Beta version of Mobile banking application deployed


successfully in test region.

In line with the directives of CBEC/RBI/IBA, EASIEST


has been rolled out in entire India. Bank has 183
authorized branches, which are participating in the
project. E-Payment facility for Indirect Taxes (CBECEASIEST) for Tax payers and this facility is available to
the customers of all branches. This facility is also
available through e-payment on Internet banking.

The Bank has implemented Cheque Truncation System


under NCR (National Capital Region) of Delhi. The
implementation of CTS in Chennai grid is in progress.

SMS Alerts is operational and on an average 31000


SMS Alerts are generated.

RTGS / NEFT have been made live in 2372 branches.

In arrangement with M/s UAE Exchange and Financial


Services Ltd., Bank has launched two products namely
X-press Money and Money Gram for making hassle free
inward Remittances.

INSPECTION AND AUDIT

01.04.2010 E x VJ +vi +iE J{I (++<B)


E +{x * < |h E +iMi J{I E Vx J
E VJ |< E n i E Vi + J{I
vx E =SS VJ Ij E + M Vi *
iEi
l E E |iE J + E xE iEi i E
M`x E M + i J+/E xE
iEi i E uE ` E E +Vx E Vi *
l

Bank has switched to on line Risk Based Internal Audit (RBIA)


from 1st April 2010. Under this system the audit plan is
prepared with reference to the Risk Profile of the branch and
audit resources are directed towards high risk areas.
VIGILANCE

iEi q { "+ B]" xE E E i xV ]


+ E M *
=SS E nMv xnx E VS i + <] x]M
|h E M`x E { E M< *

E nx { i z b xE iEi
{ EB +Vi E *
V
l
V xi E +iMi z |vx E +x{x xSi
E M , V V +vx E v 3(3) E +iMi
niV E u { V E Vx, xn |{i
{j E =k xn n Vx, x+ i+ E
uE { |Ex, Jx O E uEh +n*
l
V Exx E Ij x Ex{nx E B
E E 2008-09 i V M, M j,
l

Preventive Vigilance Committee has been formed at


every branch & office of the bank. Bi-monthly Preventive
Vigilance Committee Meetings are organized at all
branches/offices.

Banks Quarterly Newsletter on vigilance issues called


ALL-ALERT is Introduced

Initiative has been taken for formation of Off-site


Monitoring System to screen high value suspected
transactions.

Preventive vigilance workshops at various zones all over


India were conducted during the year.

OFFICIAL LANGUAGE

23

Compliance of various provisions under the Official


Language Policy was ensured viz bilingual issuance
of documents under Section 3 (3) of Official Language
Act, reply of Hindi letters in Hindi, bilingual publication
of manuals & codes, bilingualisation of stationery items
was ensured.

Bank was awarded prestigious Indira Gandhi


Rajbhasha Puraskar for the year 2008-09 for excellent

i E u "<n Mv V {E' |{i +


V +vI B |vE xnE x nxE 14 i,
2010 E xn n E + { Exp M j B Exp
M V j E ={li x n +Vi
={ ]{i xx n n +
Oh E*
l

+vI B |v xnE E i V E E Mx,


b. i V E, < E Exp E
nxE 26.05.2010 E {z {E ih
E E uE M {jE jh v i |l {E B
2008-09 i V Exx E B ii {E
|{i +*

performance in the area of Official Language


Implementation from Official Language Department,
Ministry of Home Affairs, Government of India. The prize
was received by our Chairman and Managing Director
on 14th September, 2010 from His Excellency, Mohd.
Hamid Ansari in presence of Honble Union Home
Minister and Honble Union Home Ministers of State.
l

Our Chairman and Managing Director received First


Prize for Banks Bilingual House Magazine Triveni
Dhara and Third Prize for official language
implementation 2008-09 from Shri D. Subbarao,
Honble Governor of Reserve Bank of India in the Prize
Distribution Ceremony held on 26.05.2010 at the
Central Office of R.B.I., Mumbai.

E E 2009-10 i ""V E V b |iMi""


E ii Ij ""E"" ""|l lx"" B Ij ""J"" il
""M"" ""ii lx"" |{i +*

Bank has secured First Position in linguistic region


A and Third Position in linguistic regions B and C
under Resereve Bank Rajbhasha Shield
Competitionfor the year 2009-10.

E E M {jE jh v E V E uE M
{jE |iMi 2009-10 E +iMi i VxE Ij
E B k lx ii lx |{i +*

Bank has secured Third Position for our House


Magazine Triveni Dhara under the Reserve Bank
Bilingual House Magazine Competition 2009-10 among
all the public sector banks and financial institutions.

i V E u +Vi "+J i +i E
xn xv |iMi 2009-10' E "E'
E E |iM E "|l lx" il < |iMi E
"J" E E |iM E "ui lx" |{i
+*

Two participants of our Bank secured First and Second


position in linguistic groups A and B respectively in the
All India Inter Bank Hindi Essay Competition 2009-10
organised by Reserve Bank of India.

xM V Exx i {E E +iMi V E
=iE] Exx E B E E |vx E E V
b, hb E, nnx E |l, hb E,
Jx> E ui, V b J, cn E ui,
] |Ih Exp nn E ui, il hb E,
nn E ii {E |{i B*

Under the Town Official Language Implementation


Committee prizes, Banks Head Office received the
Rajbhasha Shield, Zonal Office, Dehradun received the
First Prize, Zonal Office, Lucknow, Rajmahal Road
Branch, Baroda and Staff Training Centre, Hyderabad
received the Second Prize and Zonal Office Hyderabad
received the Third Prize for excellent implementation of
Official Language.

x vx E
l i E E { =x E E E u x {V
E E E i n M* 2010-11 E nx E x
1117 +vE (Y +vE i) + 990 {E
M E ES E i |G + E*
l

HUMAN RESOURCES DEVELOPMENT

E nx |Ih + Ii xh { +ivE n
M * ni {o E +x{ E nx x {V i <xM B |Ih/+vx E +x E{E =zi Sx {
E n M*

|S |
l E x 2010-11 E nx E E U + b {Sx
gx E B ]Vx, b + S{j/{jE+, bM
+n E v ]{ |S +x S*

The Bank laid prime importance on developing human


capital in tune with its quest to emerge as a bank of global
stature. During 2010-11, the Bank undertook processes
for recruitment of 1,117 Officers (including Specialist
Officers) & 990 clerical cadre employees.

Training and capacity building was given paramount


importance. Much emphasis was laid on e-learning and
other alternate advanced channels of training/learning
of the human capital during the year, in tune with the
changing scenario.

PUBLICITY ENDEVOURS
l

+xM l B H =t
l

The bank has gone for nation-wide campaign on


Television, Radio, and Newspapers/Magazines,
hoardings etc. during the year 2010-11 for enhancing
Banks image and brand visibility.

SUBSIDIARY & JOINT VENTURE

+E <xx . <n E E {h i +xM


E{x V E{] E , {Vx Ex, <
|vx, @h x, bS + ]]{ +b<]M E E

24

All Bank Finance Ltd., a wholly owned subsidiary of


Allahabad Bank, engaged in Corporate Advisory
Services, Project Appraisal, Issue Management, Loan

M < + Vx 2010-11 E nx .2.80 Ec E


nV E*
+i |vx E{x ""BB+< (<b)"" . +x E/
l+ E l E E 27% E <C] vi *

Syndication Debenture and Trusteeship Underwriting,


posted a profit of Rs. 2.80 crores during 2010-11.

vh i E E H =t E{x ""x
{ Vx < E{x ]b"" <bx +V
E, Ex]E E ., b <x]] . B V{x
E{x { E l 30% E <C] vi *

VxB
l

E +x E EM Miv E +iH ] , @h
x, h CE E G, BB il E +n
{ vx Epi EM*

E n i E Vx x *
2010-11 E nx xnE b, b E |vx B J
{I i x G: 15, 22 B 9 ` E E* 2010-11 E
nx xnE {nzi i, vE / xE E
Ei(xh) i, Sx |tME i, vJvc
xMx i, OE i, {v i, VJ
|vx i, xEx i, +ih i,
+]x i + }] G i x G: 5,1, 8,
7,4,1,4,1,18,1 B 2 ` E E*

30.07.2010 xnE E { <n E


r * i W E E Exp E,
< J |vE (VB), B V] xjh E
{ E E *

The Bank holds 27% equity stake in Asset Management


Company ASREC (India) Ltd along with other Banks/
Institutions

The Bank holds 30% equity stake in joint venture


company Universal Sompo General Insurance
Company Limited for general insurance business along
with Indian Overseas Bank, Karnataka Bank Ltd., Dabur
Investment Ltd. and Japanese insurance major Sompo.

FUTURE PLANS

xnE b
l

The Bank will focus on Retail Business, Loan


Syndication, Sale of Gold Coins CMS and
Bancassurance etc in addition to other core banking
activities.

The Bank is planning for overseas expansion.

BOARD OF DIRECTORS
l

The Board of Directors, the Management Committee


and the Audit Committee of the Board met 15, 22 and 9
times respectively during 2010-11. The Directors
Promotion Committee, Shareholders/Investors
Grievance Committee, IT Sub-Committee, Fraud
Monitoring Committee, Customer Service Committee,
Remuneration Committee, Risk Management
Committee, Nomination Committee, Share transfer
Committee, Share Allotment Committee and Flat
Purchase Committee met 5, 1, 8, 7, 4, 1, 4, 1, 18, 1 and
2 times respectively during 2010-11.

The RBI Nominee Director, Shri Ramaswamy joined


the Board as Director from 30.07.2010. Shri
Ramaswamy is working as Chief General Manager
(CGM), Expenditure & Budgetary control, at Central Office
RBI Mumbai.

n{ Sv 30.06.2010 vE xnE E {
<n E r * Sv 1990 i |vx
lx, EEi | (+lE ) E { B
|nx E *
+.B Sin x 14.07.2010 E 3 E +v E
B xn JE h E +iMi E u xi xnE
E { E Oh E* Sin +x E l xn
JE , + =x 26 E +x *

Shri Sudip Chaudhuri joined the Board as


Shareholders Director from 03.06.2010. Shri Chaudhuri
has been serving Indian Institute of Management,
Calcutta as Professor (Economics Group) since 1990.

Shri R.M.Chaturvedi joined the Board as Government


Nominee Director under Chartered Accountant category
wef 14.07.2010 for a period of 3 years. Shri Chaturvedi
is a Chartered Accountant and is having 26 years of
experience.

M n x 16.08.2010 E 3 E +v E B
EM xnE E { E Oh E* M n
hV xiE + =x 38 E +x *

Shri Gour Das joined the Bank as workmen Employee


Director wef 16.08.2010 for a period of 3 years. Shri Gour
Das is a Commerce Graduate and is having 38 years of
banking experience.

E nx n i, E. E. bM B i
VMxn E +{x EE E {i E {Si xnE
b xk B*

During the year Shri Mohammad Tahir, Shri K. K. Dogra


& Smt. Joginder Kaur retired from the Board of Directors
after completion of their tenure.

25

+
xnE b E E vE/xE E =xE ii lx +
Ih i vxn Y{i Ei * xnE b i W E,
i E il +x xE BV E |i =xE B
E , Mnx il lx E B +{x + H
Ei B =xE ii lx B M E Ex Ei * E
E |i OE u H EB MB ii + E B
=xE vxn Y{i Ei *

ACKNOWLEDGEMENTS

xnE b n SE n E Mnx E x
Ei + xB {nvE E Mi Ei *

The Board records its appreciation for valuable contributions


of the outgoing members and welcomes the new incumbents.

xnE b E E E |i =xE {i + E B
x Y{i Ei *

The Board of Directors is pleased to place on record their


appreciation of the committed services of the Banks
employees.

xnE b E B + =xE + ,

For and on behalf of the Board of Directors,

nxE : 02 <, 2011


lx : EEi

The Board of Directors records its appreciation for continued


support and patronage of the shareholders/investors of the
Bank. The Board of Directors gratefully acknowledges the
valuable and timely advice, guidance and support from the
Reserve Bank of India, Government of India and other
regulatory agencies and look forward to their continued support
and co-operation. The Board of Directors is thankful to the
customers for their continued trust and confidence on the
Bank.

(V.{. n+)
+vI B |v xnE

Date : 02.05.2011
Place : Kolkata

26

(J. P. Dua)
Chairman & Managing Director

-II E +iMi V |E]Eh


lli 31.03.2011 E x< {V {{ii Sx
VJ |vx
1.

Eh E {h{, nx E E B +x k lx E x z |E E VJ Vn *
-II Zi E +ii +x + nx <E gi |Vi E Si VJ |vx E H
ij E +Ei E M<* Sxi E E Ex E B E x i V E E - { V
nxn E +x{ z |E E VJ |vx |h x< *

2.

E E VJ |vx E =q |Ji: Si {Sx, {x, xMx/ xjh + VJ ={x u |ii


+M + i VJ E S Si V `i B vE E E gx *

3.

E x +{x VJ |vx E Si M`xiE gS M`i E * VJ |vx |h { i V


E E Mn x] E +xh b E VJ |vx i xE BE b i ={-i E M`x E
M * i E u x EB MB VJ E Ex Ei + VJ E {Sx, {x, xMx
il xjh i | |h Ei Ei * <E +iH, b i i { z VJ |vx E
E Ex Ei +li @h VJ |vx i (+B), {Sx VJ |vx i (++B) +
+i ni |vx i (BB+) E v Ex *

4.

|vE (BEEi VJ |vx) E E |vx E BEEi { VJ |vx E E E nJ , V


E =k VJ |vx |h + |l+ E Exx i M ij *

5.

i V E u V nxn E +x{ E x 31 S, 2008 x< {V {{ii Sx (-II)


Exi E * lni -II Sx, ix {{ r i { +vi * vi Sx E i 1 @h VJ, V VJ B {Sx VJ i +E xxi {V +Ei E nJ Ei * i
-2 ({Ih I |G) xSi Ex E B E C E E { =E Vc i VJ
i VJ |< B xjh |h E +x{ {{i {V * E E { l{Ii, +iE {V {{ii
Ex |G (+<BB{) { b u +xni xi *

6.

i-3 V +xx vi * i V E u V xni E M , E VJ |vx E v


|E]Eh ( nx jiE B {hiE)E BE ] h bB 1 bB 10 (Mx ) iE |Ei E
M V V E M fUtu Gxx, {V VJ YC{V, VJ Ex |G, E E VJ
|< B {VEh E i +n vi |J Sx+ E Ex Ex nn M* < V E
M E z xnb { E E Ex{nx E +E +Ec EM*

27

MARKET DISCLOSURE UNDER BASEL-II


NEW CAPITAL ADEQUACY FRAMEWORK AS ON 31.03.2011

RISK MANAGEMENT
1.

Consequent upon globalization, Banks and other financial institutions all over the world are exposed to different
types of risks. The emergence of Basel-II accord and its increasing applicability throughout the world calls for sound
practices in risk management. To cope with the challenges, the Bank has put in place various risk management
practices and processes in line with the guidelines of the Reserve Bank of India issued from time to time.

2.

The Banks risk management objectives broadly covers proper identification, measurement, monitoring / control and
mitigation of the risks towards enhancing and maximizing the shareholders value by addressing appropriate trade
off between an expected reward and potential risk.

3.

The Bank has set up appropriate risk management organization structure. Board Level Sub-Committee known as
Risk Management Committee has been constituted in terms of RBI guidance note on Risk Management System.
The Committee evaluates overall risks faced by the Bank and put in place effective system to identify measure,
monitor and control risk. The committee further integrates various risk management functions at committee level.
i.e., integration through Credit Risk Management Committee (CRMC), Operational Risk Management Committee
(ORMC) and Asset Liability Committee (ALCO).

4.

General Manager (Integrated Risk Management) is looking after functioning of risk management aspect in integrated
manner at Banks Head Office, who is independent of business departments, for implementing best risk management
systems and practices in the Bank.

5.

In line with the guidelines issued by the RBI, the Bank has implemented New Capital Adequacy Framework (BaselII) with effect from March 31, 2008. The Basel-II framework, as referred, is based on three mutually reinforcing
pillars. While Pillar-1 of the revised framework addresses minimum capital requirement for Credit, Market and
Operational risk, Pillar2 (Supervisory Review Process) intends to ensure that the banks have adequate capital to
address all the risks in their business commensurate with Banks risk profile and control environment. As required,
the bank has put in place a Board approved policy on Internal Capital Adequacy Assessment Process (ICAAP).

6.

Pillar-3 refers to Market Discipline. As directed by the RBI, a set of disclosures (both qualitative & quantitative) are
published in Tables DF 1 to DF 10 (annexed) with regard to risk management in the bank, which will enable market
participants to access key information on the scope of application, capital risk exposures, risk assessment processes,
banks risk profile and level of capitalization etc. This would also provide the market participants with the necessary
data to evaluate the performance of the bank in various parameters.

28

h bB - 1
|Vi
MhiE |E]Eh

fU) E E x,V { Sx M *
F) J B xE |Vx i Ex +v {
Mi E {J, E +iMi E{x E
I{i h
i)

V {hi: Ei

ii)

V x{iE +v { Ei

iii)

V P]< M< ; il

iv)

|E]Eh E fS <n E { |V V
E *
b) E E +xM/E E{x + H =t xxx
+xM E{x: E E BE xxJi +xM E{x :
a)

+xM E{x E x
+ E <xx

V x i Ei x P]< M< (+li


V x VJ +vi )

31.03.2011 E lli

n xMx
i

(%)

100%

E l: E u xxJi n Ij Oh E E |Vi E Vi
*

E E x

n xMx

<n =| Oh E*

35%

n Oh E

35%

(%)

* =k

|n V n {i IO +li Jx> Ij Oh
E + jh Ij Oh E E n E BE x i IO
+li <n =| Oh E 02.03.2010 +ii +*
H =t : E x xxJi H =t E{x B +i
|iiEh x E :

E E x

n xMx

(%)

x { Vx
< E{x ]b

30%

BB+< (<b) .

27.04%

+xM, E E{x + H =t E i xn JE lx
(+<B+<) E J xE G: 21, 23 + 27 E +x J
h Ei E M *
i V E E nxn E +x E E +B+ E Mhx
i +xM, E E{x + Ci =t EB MB x E
]-I + ]-II {V x { P] M *

{hiE |E]Eh
1

Ex x E M< +xM {VMi


E E E j +li V P]< M< + B
+xM E x*
E{x V VJ i , E x E ll =x E E E x E E (+li
S ), =xE x xMx E n,
Ex E E + + n z , i <x
E{x ivE H E +x{i* <E +iH,
E]i |h E {I < |h E |M Ex
{ xE {V { jiE |*

E +xM E r {V E E< + x *
E x H =t +li x { Vx < E{x
]b i xMi , <C] G{x E v . 45.00
Ec E x E V <E E xMi {V E 30% V
E E nxnx VJ |nx E M * i V
E E nxn E +x Ci =t E{x x E E
]-* B ]-** {V x { P] M , CE E E
x i{h x E i +vE , V E x l+ E |nk
{V E 20% +l +vE *
29

Table DF 1
SCOPE OF APPLICATION

Position as on 31.03.2011

Qualitative Disclosures
a)

The name of the top Bank in the group to which


the framework applies.

b)

An outline of differences in the basis of


consolidation for accounting and regulatory
purposes, with a brief description of the entities
within the group

a) The framework of disclosures applies to Allahabad Bank, which


is the top bank in the group.
b) The Banks subsidiary /Associates and Joint venture are as under:
Subsidiary: The Bank has one subsidiary as under:
Name of Subsidiary
All Bank Finance

i)
ii)
iii)
iv)

that are fully consolidated;


that are pro-rata consolidate;
that are given a deduction treatment; and
That are neither consolidated nor deducted
(e.g. where the investment is risk-weighted).

Country of
Incorporation

Ownership
(%)

India

100%

Associates: Two Regional Rural Banks sponsored by the Bank are


as under.
Name of Banks
Country of
Ownership
Incorporation
(%)
Allahabad UP Gramin
Bank*
India
35%
Sharda Gramin Bank
India
35%
* Our two erstwhile RRBs in the state of UP, namely Lucknow Kshetriya
Gramin Bank and Triveni Kshetriya Gramin Bank have ceased to
exist and a new amalgamated RRB, i.e., Allahabad UP Gramin Bank
has come into existence w.e.f. 02.03.2010.
Joint Venture: The Bank has invested in Joint Venture Insurance
company and Asset Securitisation company as under:
Name of Company

Country of
Incorporation

Ownership
(%)

M/S Universal Sompo


General insurance
Company Limited

India

30%

M/S ASREC (INDIA) LTD.

India

27.04%

The Subsidiary, Associates and Joint Ventures are consolidated in


the Statement of Accounts as per Accounting Standard 21, 23 and
27 respectively of Institute of Chartered Accountants of India (ICAI).
For computation of CRAR of the Bank, investment in Subsidiary,
Associates and Joint Ventures are deducted from Tier-I and Tier-II
capital equally as per RBI guidelines.
SL
No

QUANTITATIVE DISCLOSURES

(Amount: < In crores)

The aggregate amount of capital deficiencies


in all subsidiaries not included in the
consolidation i.e. that are deducted and the
names of such subsidiaries.

There is no deficiency in respect of any subsidiary.

The aggregate amounts (e.g., current book


value) of the Banks total interests in insurance
entities, which are risk weighted as well as their
name, their country of incorporation or
residence, the proportion of ownership interest
and if different the proportion of voting power
in these entities. In addition, indicate the
quantitative impact on regulatory capital of
using this method versus using the deduction.

The Bank has made investment amounting to Rs 45.00 Crores by


way of equity subscription in an insurance joint venture i.e., Universal
Sompo General Insurance Company Limited incorporated in India,
representing 30% of the companys paid-up capital. Investment in
the joint venture insurance company is deducted equally from Tier-I
and Tier-II Capital of the Bank as per RBI Guidelines, since the Banks
investment is above the level of significant investment, which is 20%
or more of the investee entitys paid-up capital.

30

h bB - 2
{V Sx

31.03.2011 E lli

MhiE |E]Eh
{V Ji E, ]-I +{ ]-II
x E {j {V Ji E J ]i+ E xvx B i
E

{hiE |E]Eh

G .
1

3.
3.1
3.2
3.3
4.
4.1
4.2
4.3
5.
6.

E u - { V ]-I, ]-II b E i, <


v E u V nxn E +xh *

xxJi E {lE |E]Eh E l ]-I {V E :


1.1 |nk {V;
1.2 +Ii;
1.3 xx i @h Ji
1.4 +x {V Ji;
1.5 J B x i ]-I {V E]i E M<
1.6 E ]-I {V
]-II {V E E (]-II {V E]i Atu\zfU)
+{ ]-II {V Ex i {j @h {V Ji
E E
< S E nx =M M<
{VMi xv E { Mhx i {j
+ ]-II {V Ex i {j Mh @h
E E
< S E nx =M M<
{VMi xv E { Mhx i {j
{V +x E]i n E<
E {j {V (]-I + ]-II)

( < Ec )
476.22
7179.79
300.00

58.61
7897.40
4044.77

1000.00
0.00
1000.00

2611.90
0.00
2351.91
58.61
11942.17

]-* E +iMi {j xx i @h Ji vi Sx:


G..

+]x
E il

b
( .
Ec )

E{x n

+v

V Mix il

S r

]M

30.03.2009

150.00

9.20%

|i 30 S

BxB<

18.12.2009

150.00

9.08%

|i 18 n

BxB<

E-BB
G-BB+
E-BB
G-BB+

31

+{ ]-II E +iMi {j xx @h Ji vi Sx:


G..

+]x
E il

b
( .
Ec )

E{x n

19.03.2009

500.00

9.28%

180

18.12.2009

500.00

8.58%

180

+v

V Mix il

S r

]M

|i 19 S

BxB<

|i 18 n

BxB<

E-BB
G-BB+
E-BB
G-BB+

+ ]-II E +iMi {j Mh @h Ji vi Sx:


G..

+]x
E il

b
( .
Ec )

E{x n

31.03.2004

200.00

5.90%

13.03.2006

500.00

29.09.2006

+v

b
(]]Ei)
(Ec )

99

40.00

8.00%

120

400.00

561.90

8.85%

120

561.90

25.09.2007

500.00

10.00%

120

500.00

26.03.2009

400.00

9.23%

120

400.00

04.08.2009

450.00

8.45%

120

450.00

2611.90

2351.90

32

V Mix il

S r

]M

B< E- BB+
BxB< S-BB
E-BB+
13 S + i
+v E
BxB< G-BB+
29 i E BxB< E-BB+
G-BB+
BxB< E-BB+
31 S E
G-BB+
26 S E
BxB< E-BB+
G-BB+
4 +Mi E
BxB< E-BB+
G-BB+
31 S

Table DF 2
CAPITAL STRUCTURE

Position as on 31.03.2011

Qualitative Disclosures
Summary information on the terms and conditions of the main
features of all capital instruments, especially in the case of
capital instruments eligible for inclusion in Tier 1 or in Upper
Tier 2.

SL
No

The terms and conditions of Tier-I & Tier II Bonds issued


by the Bank from time to time adhere to applicable RBI
guidelines in this respect.

Quantitative Disclosures

(Amount < In crores)

The amount of Tier 1 capital, with separate disclosure of:


1.1 paid-up share capital;

476.22

1.2 reserves;

7179.79

1.3 innovative perpetual debt instruments;

300.00

1.4 other capital instruments;

1.5 amounts deducted from Tier-I capital, including goodwill and investments.

58.61

1.6 Total Tier-I Capital

7897.40

The total amount of Tier-II capital (net of deductions from Tier -II capital)

Debt capital instruments eligible for inclusion in Upper Tier-II capital


3.1 Total amount outstanding

4044.77

1000.00

3.2 Of which amount raised during the current year

0.00

3.3 Amount eligible to be reckoned as capital funds


4

1000.00

Subordinated debt eligible for inclusion in Lower Tier 2 capital


4.1 Total amount outstanding

2611.90

4.2 Of which amount raised during the current year

0.00

4.3 Amount eligible to be reckoned as Capital funds


5

Other deductions from capital, if any.

Total eligible capital (Tier-I + Tier-II)

2351.91
58.61
11942.17

Information about Innovative Perpetual Debt Instruments eligible under Tier-I:

30.03.2009

BOND
AMT. (in
Rs. Crores)
150.00

18.12.2009

150.00

S.N.

DATE OF
ALLOTMENT

COUPON
RATE

TENOR

INTEREST PAYMENT
DATE

LISTED

9.20%

Perpetual

30th March every year

NSE

CARE- AA
CRISIL- AA+

9.08%

Perpetual

18th December every


year

NSE

CARE- AA
CRISIL- AA+

33

RATING

Information about Innovative Instruments eligible under Upper Tier-II:

19.03.2009

BOND
AMT. (In
Crores)
500.00

18.12.2009

500.00

S.N.

DATE OF
ALLOTMENT

COUPON
RATE

TENOR

INTEREST PAYMENT
DATE

LISTED

9.28%

180 months

19th March every year

NSE

CARE- AA
CRISIL- AA+

8.58%

180 months

18th December every


year

NSE

CARE- AA
CRISIL- AA+

RATING

Information about Subordinated Debt Instruments eligible under Lower Tier-II:


S.N.

DATE OF
ALLOTMENT

BOND
AMT. (In
Crores)

COUPON
RATE

TENOR

BOND AMT.
(Discounted)
(in crores)

INTEREST
PAYMENT DATE

LISTED

RATING

1.

31.03.2004

200.00

5.90%

99
months

40.00

31st March
Annual

BSE &
NSE

CARE- AA+
FITCH- AA

2.

13.03.2006

500.00

8.00%

120
months

400.00

13th March and


September
(Semi annual)

NSE

CARE- AA+
CRISIL-AA+

3.

29.09.2006

561.90

8.85%

120
months

561.90

29th September
Annual

NSE

CARE- AA+
CRISIL-AA+

4.

25.09.2007

500.00

10.00%

120
months

500.00

31st March
Annual

NSE

CARE- AA+
CRISIL-AA+

5.

26.03.2009

400.00

9.23%

120
months

400.00

26th March
Annual

NSE

CARE- AA+
CRISIL-AA+

6.

04.08.2009

450.00

8.45%

120
months

450.00

4th August
Annual

NSE

CARE- AA+
CRISIL-AA+

TOTAL

2611.90

2351.90

34

h bB - 3
{V {{ii
MhiE |E]Eh

31.03.2011 E lli

+{x ix + Miv E lx i +{x {V E {{ii E xvh Ex E E E o]Eh { SS E


1. i V E x +|, 1992 i E E E B {V {{ii ={ E { VJ +i +x{i |h M E V
@h VJ E P]E l* ix {j +i, M xvE n + +x ix{j x E xvi VJ i xni
E Vi + E E ii +v { E VJ i +i { xvi +x{i E i xxi +Ihh {VMi xv
xB Jx M* E E n M< l E xv +vi + M xv +vi x i E VJ i +i
{ 31 S 1993 iE {V {{ii E 4% E xxi i E + 31 S 1996 iE 8% E xxi i E xB J* inxxi
{V {{ii +x{i E xxi i E 9% iE g M* nxn -* nxn E { Vx Vi *
2. 27 +|, 2007 E E x -II E +iMi x< {V {{ii Sx { +i nxn V EB* <E +iH
i V E x < vi EU i E 31 S 2010 E {]Eh V EB * EU +vE {ix E
] Ei B i V E x 01 V<, 2008 E {V {{ii il V +xx v E{h nxn- x<
{V {{i Sx E v BE ] {{j V E * <x nxn @h E] + {Sx VJ {] n
E M *
3. i V E E nxn E +x{, E x nxE 31.03.2008 x< {V {{ii Sx E +{x * E Mi
BC{V E +xh Ei B --II Sx E xi |G E V J + E{h vi nxn E
+x{x xSi Ex E o]Eh jE +v { E E +B+ { | E +vx E *
4. -II Sx @h VJ, V VJ + {SxMi VJ E B {V E +Ei xSi Ex i +xE E{
={v Ei * i V E E nxnx E x 31 S 2008 + 2009 E i lli 31 S 2010 E
{V E Mhx i @h VJ E B xEEi o]Eh (BB) + {SxMi VJ E B EiE o]Eh (+<B)
E +{x * E V VJ E B {V +{I E Mhx i 31 S 2008 xEEi +v o]Eh (BbB) E
+{x * ii:, + iE @h VJ + V VJ E B {V xB Jx E +iH, E nxE 31.03.2008
{SxMi VJ E B {V xB Ji *
5. i V E x E u ii +v { @h VJ, V VJ + {SxMi VJ E v , niV
xvi 8 |ii E {I 9 |ii +B+ xB Jx xvi E * -II nxn E +x VJ i {{k
+x{i(+B+) E ix E {V lli 31.03.2011 E 12.96% |ii xEi * ] I +B+ E
E 6.00% E xvh E {I 8.57% * xEEi o]Eh E +iMi @h VJ E B {V E Mhx , E x B
|h E u |iE J |{i =vEi +Ec { E * VE xEEi o]Eh E +iMi E E
nxn xvi , E x @h VJ E B {V E Mhx @h VJ ={x E |M E * {Sx VJ
B V VJ i +Ec E Ex |vx E i { E M *
6. E xxi +{x {V Vi E Ex E * i E u E +vx +]x E v MB MB < 670
Ec E {V E E 58% iE M , V E S B E gx i {V Sx E +iCi
{ lx Ex B +{Ii +B+ E { Ex E B E E { ] I + ] II {V Oh E B {{i b
={v *

G .
1

3
4

{hiE |E]Eh
VJ |vx i {V +EiB
1.1 xEEi o]Eh E +vvx M
1.2 |iiEh BC{V
V VJ i {V +EiB
(xEEi +v o]Eh)
2.1 V n VJ
2.2 n x VJ(h i)
2.3 <C] VJ
{SxMi VJ i {V +EiB
( EiE o]Eh)
E B ]-I {V +x{i :
4.1 E +B+
4.2 ] I +B+

( < Ec )
7209.10
0.00
460.18
348.90
2.71
108.57
624.95

12.96%
8.57%

35

Table DF 3
CAPITAL ADEQUACY

Position as on 31.03.2011

Qualitative Disclosures
A summary discussion of the Banks approach to assessing the adequacy of its capital to support current and future
activities:
1.

The Reserve Bank of India (RBI) introduced a Risk Asset Ratio System for banks in India as a capital adequacy
measure covering the elements of Credit Risk in April 1992.The Balance sheet assets, non-funded items and other offbalance sheet exposures are assigned prescribed risk weights and banks have to maintain unimpaired minimum
capital funds equivalent to the prescribed ratio on the aggregate of the risk weighted assets on an on going basis.
Banks were advised to ensure capital adequacy at a minimum level of 4% on the aggregated risk weighted assets
including both fund based and non-fund based exposures by 31st March-1993 and 8% by 31st March-1996. The Minimum
level of Capital Adequacy was increased to 9% subsequently. These guidelines together are known as Basel-I guidelines.

2.

On 27th April, 2007, the RBI released the Final Guidelines for implementation of the New Capital Adequacy Framework
under Basel-II. In addition, the RBI issued clarifications on 31st March, 2008 on certain issues related to the subject.
Incorporating some intermittent changes, the RBI released the master circular on Prudential Guidelines on Capital
Adequacy and Market Discipline- New Capital Adequacy Framework on July 01, 2010. These guidelines make clear
distinction between Credit, Market and Operational risks.

3.

In line with the RBI guidelines, the Bank migrated to the New Capital Adequacy Framework (Basel-II) with effect from
31.03.2008. The Bank is continuing with the parallel run of Basel I norms and studying the impact on Banks CRAR on
quarterly basis with a view to ensuring compliance with the guidelines under prudential floor.

4.

Basel-II Framework provides a range of options for determining the capital requirements for Credit Risk, Market Risk
and Operational Risk. In accordance with the RBIs guidelines, the Bank has adopted Standardized Approach (SA) for
Credit Risk, and Basic Indicator Approach (BIA) for Operational Risk to compute capital as on 31st March, 2010 also
like as on 31st March 2008 and 2009.. The Bank continues to apply the Standardized Duration Approach (SDA) for
computing capital requirement for market risks with effect from 31st March, 2008. As such, in addition to maintaining
capital for credit risk and market risk as hitherto, the Bank maintains capital for operational risk from 31.03.2008.

5.

Reserve Bank of India prescribes Banks to maintain a minimum Capital to Risk-weighted Assets Ratio (CRAR) of 9
percent with regard to credit risk, market risk and operational risk on an ongoing basis, as against 8 percent prescribed
in Basel Documents. The total Capital to Risk Weighted Assets Ratio (CRAR) as per Basel II guidelines works to
12.96% as on 31.03.2011. The Tier-I CRAR stands at 8.57% as against RBIs prescription of 6.00%. In computation of
capital for credit risk under Standardized Approach, the Bank has relied upon the data captured from each individual
branch through the CBS system. The Bank has used the credit risk mitigants in computation of capital for credit risk, as
prescribed in the RBI guidelines under Standardized Approach. The data for Operational Risk and Market Risk have
been consolidated at Head Office.

6.

The Bank is continuously evaluating its capital requirement. The capital infusion of < 670 crores by the GoI through
preferential allotment of shares has taken the Govt.s share up to 58%, thus leaving sufficient headroom for the Bank
to mobilize Tier I and Tier II capital to additionally support capital structure and meet the CRAR requirements against
current and future business expansion.

SL
No
1

Quantitative Disclosures

(Amount < in Crores)

Capital requirements for Credit Risk:


1.1

portfolios subject to standardized approach

1.2

securitization exposures

7209.10
0.00

Capital requirements for Market Risk(Standardize Duration Approach


2.1

interest rate risk

2.2

foreign exchange risk(including gold)

2.3

equity risk

460.18
348.90
2.71
108.57

Capital requirements for Operational Risk (Basic Indicator Approach)

Total and Tier-1 Capital Ratio:

624.95

4.1

Total CRAR

12.96%

4.2

Tier-I CRAR

8.57%

36

h bB - 4

@h VJ : x |E]Eh
MhiE |E]Eh

31.03.2011 E lli

1.@h VJ
1.1 =v nx E< i E VJ * @h VJ =vEi+ +l |i{I E @h Mhk vi x E x
*
1.2 @h VJ SE VJ OE +l |i{I u =v, ]bM, VM, x{]x B +x k xnx vi |iri+
E { Ex +xSU +Ii E Eh i* @h VJ +i { xnx VJ SE VJ B M VJ
=i{z i *
1.3 @h +xnxEi |vE, E{h x , =tM x , @h VJ ]M |h, VJ +vi |<M, @h
I ij + @h VJ x V ={Eh E |M E u @h VJ |vx E B E Vi * @h VJ E
{E |ii + M] |i Ei B z =tM + Ij Jb x , E{h x + {{i x =SSi
+ VJ x E v xji E Vi *
2. @h VJ |vx xi :
2.1 E E { b u vi +xni BE li @h VJ |vx xi * xi niV M`xiE Sx, E B ni
il |G+ E {i Ei VE v E E x @h VJ E {Sx, ytfUtl Ex nn i +
=xE |vx = Sx E +iMi E Vi V E +{x +vn B VJ xi E +x{ ={H Zi *
2.2 E u Ji @h VJ E xMx E Vi + b u +xni VJ +/BC{V E{ E +x{x E xSi
E Vi * +iE xjh |h E Mhk E xMx E Vi + @h VJ vi q E Ex
i +iE nIi Ei E Vi *
2.3 =k @h VJ |vx |h Ei Ex i E x i{h En =` * @h VJ |vx xi E +iH, E E
{ b u +xni @h xi, x, n VJ |vx xi +n V @h VJ E xMx E +z +M
*
+ z xE +{I+ E +x{x xSi Ei { /+x vE |vE E x xnb, |lEi
Ij xnb, + +Yx + +i MEh nxn, {V {{ii, @h VJ |vx +n v nxn E n

2.4 <E +iH E E @h VJ x + {E |ii |vx E v b u +xni xi V E E i


E I E B |ii + B |ii E |x E h xvi EB MB *
3. E E Sx B |h :
3.1 E VJ |vx |E E xMx + x i xnE b u VJ |vx i (+B) xE xnE
E ={i E M`x E M *
3.2 @h xi i z @h VJ Exi xx + <xE Exx i il xi +v { E E VJ |vx E
E xMx i @h VJ |vx i E M`x E M *
4. @h Ex /+iE ]M :
4.1 E +{x @h VJ E |vx E =vEi B M i { VJ E ii {x B xMx E v Ei *
E E { BE H +iE Gb] ]M Sx + li xEEi @h Ex/+xnx |h *
4.2 +iE VJ ]M/ObM b |vx VJ vi {hiE B MhiE q, VJ, =tM VJ,
k VJ B {Vx VJ * <E +iH, < i E ]M =vEi E O ]M E Ex Ei
] xnx i @h {vx ]i+ { S E Vi * V li E +v { =tM VJ E +Ec
xi +tix E Vi *
4.3 |iE =vEi E ]M E I E Vi * H @h VJ |vx |G E ={ E { E x |vx E +
b E/J i { Ei |i i Gb] ]M |G E ji |h Exi E V @h M
<i ]M E vi (i Sh ) * E E |vx E E H E +iMi +x |i E ]M
E vi VJ |vx M u E Vi *
4.4 E @h E Ei i li -i Evx H Sx E +xh Ei * xB/{vx |i { S
Ex E B |vx E + Ij |vE i { Gb] Ob E M`x E M * xn] E]-+ +vE E xB
@h |i { rii: +xnx |nx Ex i +vI B |v xnE E +vIi |vx E i { x
(BxV) xE Sx E M`x E M * E E { xB =i{n i VJ |vx Sx V xB =i{n E v
=xE { xxi |G/Ex xnb E xvi Ei *
37

G .

{hiE |E]Eh

4.

<

Ec )

E E @h VJ BC{V , xv +vi B M-xv +vi +M-+M


1.1 xv +vi
94570.93
1.2 M-xv +vi
13788.87
2.BC{V E ME ih
2.1 n :
2.1.1 xv +vi
2902.98
2.1.2 M xv-+vi
122.78
2.2 P :
2.2.1 xv +vi
91667.95
2.2.2 M xv-+vi
13666.09
3
=tM { E BC{V E ih
xv +vi
41742.00
M-xv +vi
12079.73
+i E +] nMi {{Ci (31.03.2011 E lli +i E E] li)

+i

6
7
8

10
11
12

(< Ec )

+M
nx

2-7 nx

8-14 nx 15-28 nx 29nx-3 3-6

6-12

2042.93

5998.39

4174.14

7493.66 40289.05 18069.74 43430.78 151286.36

3677.17

16628.69 9481.81

Bx{B E (E)
5.1 +xE
5.2 nMv 1
5.3 nMv 2
5.4 nMv 3
5.5 xMi
x Bx{B
Bx{B +x{i
7.1 E +O E Bx{B
7.2 x +O x Bx{B
Bx{B E Sx (E)
8.1 +l
8.2 r
8.3 E
8.4 <i
Bx{B i |vx E Sx
9.1 +l
9.2 < +v E nx EB MB |vx
9.3 <] +
9.4 +iH |vx E <] E
9.5 <i
+xVE x E
+xVE x i EB MB |vx E
x E i |vx E Sx
12.1 +l
12.2 < +v E nx E M |vx
12.3 <] +
12.4 +iH |vx E <] E
12.5 <i

1-3y

3-5

B
+vE

1647.92
767.79
295.65
186.81
314.76
82.91
736.37
1.74%
0.79%
1221.80
1747.07
1320.95
1647.92
1751.65
800.00
719.90
31.80
863.55
2.40
2.40
251.80
130.85
0.00
84.87
297.78

38

Table DF 4
CREDIT RISK : GENERAL DISCLOSURES

Position as on 31.03.2011

Qualitative Disclosures
1. Credit Risk:
1.1. Lending involves a number of risks. Credit Risk is broadly the probability of losses associated with diminution in
the credit quality of borrowers or counterparties.
1.2. Credit Risk or default risk involves inability or unwillingness of a customer or counterparty to meet commitments
in relation to lending, trading, hedging, settlement and other financial transactions. The Credit Risk is generally
made up of transaction risk or default risk and portfolio risk.
1.3. Credit approving authority, prudential exposure limits, industry exposure limits, credit risk rating system, risk
based pricing, loan review mechanism and Credit Risk Mitigants are the instruments used by the bank for credit
risk management. Credit risk is controlled through segmental exposure limits to various industries and sectors,
prudential exposure and substantial exposure ceilings and risk mitigation by obtaining collateral and guarantees.
2. Credit Risk Management Policies:
2.1 The Bank has put in place a well-structured Credit Risk Management Policy duly approved by the Board. The
Policy document defines organizational structure, role and responsibilities and the processes whereby the Credit
Risks carried by the Bank can be identified, quantified, managed and controlled within the framework which the
Bank considers consistent with its mandate and risk tolerance limits.
2.2 Credit Risk is monitored by the Bank account wise and compliance with the risk limits / exposure cap approved by
the Board is ensured. The quality of internal control system is also monitored and in-house expertise has been
built up to tackle all the facets of Credit Risk.
2.3 The Bank has taken earnest steps to put in place best Credit Risk Management practices. In addition to Credit
Risk Management Policy, the Bank has also framed Board approved Lending Policy, Investment Policy, Country
Risk Management Policy, Recovery Policy etc. which form integral part in monitoring of credit risk and ensures
compliance with various regulatory requirements, more particularly in respect of Exposure norms, Priority Sector
norms, Income Recognition and Asset Classification guidelines, Capital Adequacy, Credit Risk Management
guidelines etc. of RBI/other Statutory Authorities.
2.4 Besides, the Bank has also put in place a Board approved policy on Credit Risk Mitigation & Collateral Management which lays down the details of securities and administration of such securities to protect the interests of the
Bank. These securities act as mitigants against the credit risk to which the Bank is exposed.
3. Architecture and Systems of the Bank:
3.1 A Sub-Committee of Board of Directors termed as Risk Management Committee (RMC) has been constituted to
specifically oversee and co-ordinate Risk Management functions in the bank.
3.2 A Credit Risk Management Committee of executives has been set up to formulate and implement various credit
risk strategies including lending policy and to monitor Banks Risk Management functions on a regular basis.
4. Credit Appraisal / Internal Rating:
4.1 The Bank manages its credit risk through continuous measuring and monitoring of risks at each obligor (borrower) and portfolio level. The Bank has robust internally developed credit risk grading / rating modules and wellestablished credit appraisal / approval processes.
4.2 The internal risk rating / grading modules capture quantitative and qualitative issues relating to management risk,
business risk, industry risk, financial risk and project risk. Besides, such ratings consider transaction specific
credit enhancement features while assessing the overall rating of a borrower. The data on industry risk is constantly updated based on market conditions.
4.3 The rating for every borrower is reviewed. As a measure of robust credit risk management practices, the bank has
implemented a three tier system of credit rating process for the loan proposals sanctioned at Head Office Level
and two tier system at Zonal Office/ Branch level which includes validation of rating independent of credit department. For the proposals falling under the powers of Banks Head Office, the validation of ratings is done at Risk
Management Department.
4.4 The Bank follows a well defined multi layered discretionary power structure for sanction of loans. Credit Grid has
been constituted at Head Office and Field General Managers levels for considering fresh / enhancement proposals. A structure named New Business Group (NBG) headed by CMD has been constituted at Head Office level for
considering in-principle approval for taking up fresh credit proposals above a specified cut-off point. The Bank
has put in place a risk management framework for new products which lay down minimum processing / assessment norms to assess risk in a New Product prior to its introduction.

39

Quantitative Disclosures

SL
No
1

(Amount < in Crores)

Total gross credit risk exposures, Fund based and Non-fund based separately.
1.1

Fund Based

94570.93

1.2

Non Fund Based

13788.87

Geographic distribution of exposures


2.1

Overseas
2.1.1 Fund Based

2902.98

2.1.2 Non Fund Based


2.2

122.78

Domestic
2.2.1 Fund Based

91667.95

2.2.2 Non Fund Based

13666.09

Industry type distribution of exposures


Fund based

41742.00

Non Fund based

12079.73

4. Residual contractual maturity breakdown of assets (bucket wise position of assets as on 31.03.2011) (< in crores)

ASSETS
SL
No
5

6
7

10
11
12

Next
day

2-7 ds

Over
8-14 ds

15-28 ds 29ds-3mth 3-6mths 6-12 mths

2042.93

5998.39

4174.14

3677.17

16628.69 9481.81

Quantitative Disclosures
Amount of NPAs (Gross)
5.1
Substandard
5.2
Doubtful 1
5.3
Doubtful 2
5.4
Doubtful 3
5.5
Loss
Net NPAs
NPA Ratios
7.1
Gross NPAs to gross advances
7.2
Net NPAs to net advances
Movement of NPAs (Gross)
8.1
Opening balance
8.2
Additions
8.3
Reductions
8.4
Closing balance
Movement of provisions for NPAs
9.1
Opening balance
9.2
Provisions made during the period
9.3
Write-off
9.4
Write-back of excess provisions
9.5
Closing Balance
Amount of Non-Performing Investments
Amount of provisions held for non-performing investments
Movement of provisions for depreciation on investments
12.1 Opening balance
12.2 Provisions made during the period
12.3 Write-off
12.4 Write-back of excess provisions
12.5 Closing balance

40

1-3yrs

3-5yrs

5 years
& Over

Total

7493.66 40289.05 18069.74 43430.78 151286.36

(Amount < in Crores)


1647.92
767.79
295.65
186.81
314.76
82.91
736.37
1.74%
0.79%
1221.80
1747.07
1320.95
1647.92
751.65
800.00
719.90
31.80
863.55
2.40
2.40
251.80
130.85
0.00
84.87
297.78

h bB - 5

@h VJ : xEEi o]Eh E +vvx M i |E]Eh


MhiE |E]Eh
1.

31.03.2011 E lli

x ri :
E E nxnx{, E x 31.03.2008 @h VJ i {V E {Ex E B x< {V {{ii Sx
(BxB) E xEEi o]Eh E +{x * {V E {Ex i E x z +i M E B E u
l|ii VJ xni EB *

2.

Gb] ]M :

2.1 i V E x E E +xi |nx E E P xn E V i x i xxJi Gb] ]M


BV, xi: (E) Gb] Bx] Bb S . (E) (J) G . (M) S <b . B (P) <E . +
+i] x i (E) ]bb B {+ (J) bV (M) S ]M E ={M E* ={H nxn { S Ei B
E x b u vi +xni <+B u n E ]M { xi E +iMi <x <+B u xni ]M
E E Ex E xh *
2.2 ]M |G E Ei xx + OE E =xE BC{V i ]M Ex E B E x <x S <+B
Gb] ]M BV E l Zi Y{x x{ni E * E <x Gb] ]M BV u =vEi+ E E
|E E BC{V E B xni ]M E |M EM* {U 15 E nx x< xni IEi ]M E
E u {V {Ex i Yx VBM* Vx =vEi E { Gb] ]M BV E BE
+vE ]M , {V |l E {Ex i VJ xni Ex E B E u xvi nxn E +x{x
E V* inx, E x 31.03.2011 E lli E{] B {B< Jb E +iMi @h VJ i {V E {Ex
E B E E +xni Gb] ]M BV u =vEi E @h BC{V i xni ]M { S E *
2.3

E{] / {B< E < E E x E +xni Gb] ]M BV E = J < i


xni ]M E Yx M + inx, E E nxn n MB ]M E { {M E
={i VJ +]i E M *
2.4 E c E{]/ {B< =vEi+ E <+B ]M |{i Ex E B |ix ni + V ]M ={v
E x VJ i +i E Mhx i <x ]M E |M E *

{hiE |E]Eh

G .
1

( < Ec )

xEEi o]Eh E +vx VJ ={x E n E


BC{V i xxJi ix |J VJ Ij E E E
(xvi B +xvi) l V P]B MB *
1.1.(E) 100% VJ i E - (xvE)

47492.07

1.1.(J) 100% VJ i E -(M- xvE)

47629.34

1.2.(E) 100% VJ i -(xvE)

38157.55

1.2 (J) 100% VJ i- (M- xvE)

12118.94

1.3 (E) 100% VJ i +vE -(xvE)

8481.54

1.3 (J) 100% VJ i +vE- (M-xvE)

2689.86

1. 4 P] M

41

Table DF 5
CREDIT RISK : DISCLOSURES FOR PORTFOLIOS SUBJECT TO THE STANDARDIZED APPROACH
Position as on 31.03.2011

Qualitative Disclosures
1.

General Principle:
In accordance with the RBI guidelines, the Bank has adopted Standardized Approach of the New Capital Adequacy
Framework (NCAF) for computation of capital for credit risk with effect from 31.03.2008. In computation of capital, the
Bank has assigned risk weights to different asset classes as prescribed by the RBI.

2.

External Credit Ratings:


2.1 The Reserve Bank of India has permitted Banks to use the external ratings of the following External Credit Rating
Agencies (ECRAs) namely (a) Credit Analysis and Research Ltd. (CARE), (b) CRISIL Ltd., (c) FITCH India Ltd.
and (d) ICRA Ltd for mapping of risk weights for domestic exposures and (a) Standard & Poor (b) Moodys (c)
Fitch for international exposure. In consideration of the above guidelines, the Bank has decided to accept the
ratings assigned by all these ECRAs, under the Policy on Rating of Claims by ECRAs duly approved by the
Board.
2.2 In order to facilitate the process of external rating and enabling the customers to solicit external ratings for their
exposures smoothly, the Bank has taken initiatives by entering into separate MOU with all these four ECRAs.
The Bank shall use the ratings assigned for any type of exposures by any of these ECRAs as accepted and
provided by the borrowers. External ratings assigned, fresh or reviewed, at least during the previous 15 months
shall only be reckoned for capital charge computation by the bank. Wherever, a borrower possesses more than
one rating from ECRAs, the guidelines prescribed by the RBI is followed as regards to assignment of risk weight
for computation of capital. Accordingly, the Bank has taken into consideration the borrowers loan exposure
ratings assigned by approved ECRAs, while computing capital for credit risk as on 31.03.2011 under segments
namely Corporates and PSEs.
2.3 In case of Banks investment in particular issues of Corporate / PSEs, the issue specific rating of the approved
ECRAs are reckoned and accordingly the risk weights have been applied after a corresponding mapping to
rating scale provided in RBI guidelines.
2.4 The Bank encourages large corporate/ PSE borrowers to solicit ratings from ECRAs and has used these
ratings for calculating risk weighted assets wherever such ratings are available.

Quantitative Disclosures

SL

(Amount < in Crores)

No
1

For exposure amounts after risk mitigation subject to the standardised approach,
amount of the Banks outstandings (rated and unrated) in the following three major
risk buckets as well as those that are deducted;

1.1

(a) Below 100 % risk weight (Funded)

47492.07

1.1

(b) Below 100 % risk weight (Non- Funded)

47629.34

1.2

(a) 100 % risk weight (Funded)

38157.55

1.2

(b) 100 % risk weight (Non- Funded)

12118.94

1.3

(a) More than 100 % risk weight (Funded)

8481.54

1.3

(b) More than 100 % risk weight (Non- Funded)

2689.86

1.4

Deducted

42

h bB - 6

@h VJ {x : xEEi o]Eh i |E]Eh


MhiE |E]Eh
1.
2.
3.
4.
5.

6.

7.

{k, j + x E x v BE {E xi b u +xni E M< *


VJ x i E u xi ={M EB Vx {E k {E (+li E V ,
E/bE |ii, Vx {, h +h, S+ b x] +n), z h E S + +S
+i/ {k +n i *
V HMi/E{] M] +{Ii i , =vEi E{x/E{] E }M{ O{ E{x Jx
E |J n E M] E i n Vi * xSi E Vi E =xE +xxi x
{k =xE M]Ei xx E B {{i *
xE +{I+ E +x{ E x b u vi +xni {E |vx B @h VJ {x E v
BE {] xi +{x< *
i V E E xnx E x xEEi o]Eh E ii @h VJ {x E v BE {E
o]Eh +{x VE ii |ii xi iE x] E | { E Ei B x]
E n |ii (|lE B {E) E {h Vx E +xi n M< * < |E @h VJ {V E
{Ex @h x] E E Ex i {j k x] E {h ={M E Vi * < |E E x <
v i W E E nxn E +x{ <x ] |ii E +Yi E : (E) E V
(J) Vx { (M) BxB/E{ (P) E |ii>
<E +iH, @h VJ {x E +x +xni { : +x citm ] x]M + {j M] E ={vi*
i W E E nxn E +x =vEi E n M @h/ +O E {I ={v V E (x]
E iE) iE +x citm ] x]M E +Yi E M* <E +iH, @h VJ {V E {Ex i i
W E E nxn E +x {x B M VJ i <x M] E { E Vi : (E) Exp E
E M] (0%), (J) V E (20%) (M) V]BB< (0%) (P) <V (20%) (b.) J {j E ii G
EB MB/xB MB E { M] (20% n E E ]M E +x )*
{x i {j |E E |ii k |ii E { +x n Vi * < |E E
u +Yi @h VJ {E |G Exph VJ E xEh i E< /=SSi xvi x
fUe dRo ni*

G .
E.

J.

31.03.2011 E lli

{hiE |E]Eh

( < Ec )

{lE { |E]Ei @h VJ M i, E BC{V (V |V


+x +l + ] E x]M E {Si) V E]i E {Si, {j k
{E { Ii

5257.18

{lE { |E]Ei @h VJ M i, E BC{V (V |V


+x +l + ] E x]M E {Si) V M]/Gb] b<] u
Ii (V E u { +xi n M< )

43

Table DF 6
CREDIT RISK MITIGATION : DISCLOSURES FOR STANDARISED APPROACHES
Position as on 31.03.2011

Qualitative Disclosures
1.

A comprehensive policy on valuation of property, plant & machinery, has been approved by the Board.

2.

The collaterals commonly used by the Bank as the risk mitigants comprise of the financial collaterals (i.e., bank deposits,
govt./postal securities, life insurance policies, gold jewellery, units of mutual funds etc.), various categories of movable
and immovable assets/landed properties etc.

3.

Where personal/corporate guarantee is considered necessary, the guarantee is preferably that of the principal members
of the group holding shares in the borrowing company/ flagship Group Company of corporate. It is ensured that their
estimated net worth is substantial enough for them to stand as guarantors.

4.

In line with the regulatory requirements, the Bank has put in place a well-articulated Policy on Credit Risk Mitigation and
Collateral Management duly approved by the Banks Board.

5.

As advised by RBI, the Bank has adopted the comprehensive approach relating to credit risk mitigation under Standardised
Approach, which allows fuller offset of eligible securities against exposures, by effectively reducing the exposure amount
by the value ascribed to the securities. Thus the eligible financial collaterals have been used to reduce the credit
exposure in computation of credit risk capital. In doing so, the Bank has recognised specific securities namely (a) Bank
Deposits (b) Life Insurance Policies (c) NSCs / KVPs (d) Government Securities, in line with the RBI guidelines on the
matter.

6.

Besides, other approved forms of credit risk mitigation are On Balance Sheet Netting and availability of Eligible
Guarantees. On balance sheet netting has been reckoned to the extent of the deposits available against the loans/
advances of the borrower (to the extent of exposure) as per the RBI guidelines. Further, in computation of credit risk
capital, the types of guarantees recognized for mitigation and applicable Risk Weights, in line with RBI Guidelines are
(a) Central Government Guarantee (0%) (b) State Government (20%) (c) CGTMSE (0%) (d) ECGC (20%) (e) Bank
guarantee in form of bills purchased/discounted under Letter of Credit (20% or as per rating of foreign banks).

7.

All types of securities eligible for mitigation are easily realizable financial securities. As such, presently no limit/ceiling
has been prescribed to address the concentration risk in credit risk mitigants recognized by the Bank.

SL
No
(a)

(b)

Quantitative Disclosures

(Amount < in Crores)

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.

5257.18

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

44

h bB - 7

E.

J.

(M)

G
.

|iiEh : xEEi o]Eh i |E]Eh


MhiE |E]Eh

|ii + =xE v x MhiE |E]Eh +{I xxJi { SS


:
l
|iiEh Miv E v E E =q, = iE VE ii
Miv |iiEi BC{V E @h VJ E E <i i +ii
Ei *
l
+x VJ (+li ii VJ) |iiEi +i +ixi *
l
E u |iiEh E< x< M< z EB (+li +Vx],
xE, , @h r |ni, ii |ni) + |iE E E Mi
E E Ei
l
|iiEh BC{V E @h + V VJ {ix E x]M Ex
|G E h (+li {vE +i E |E |iiEh BC{V
{ | bi V E nxE 01.07.2009 E BxBB v ] {{j
E { 5.16.1 {i * )
l
|iiEh BC{V E v VJ E x i @h VJ x E
|M E i Ex E E xi E h
|iiEh Miv i E E J xi E , V xxJi :
l
C xnx E G k{h x Vi *
l
vi +l G E M< li E x i |M < M< {ri + |J
{xx*
l
{U +v {ri + |J {xx {ix + <x {ix E |*
l
|iiEi +i i k i E B +{Ii l Ex i ix{j
v ni+ E +Yi Ex E xi
EM , |iiEh i |H <B+< E x + |iiEh BC{V E |E VE
B +M-+M BV E M Vi *

MhiE |E]Eh: EM

P.

E u |iiEi E E BC{V

R.

S +v E nx E u |iiEi BC{V + BC{V E { (+li


Gb] Eb, + @h, +] @h +n)E +x E u +Yi x*

S.

E +n |iiEi i +|i +i E

U.

E +n =i{z +i E

V.

|iiEi BC{V (BC{V { E +x) + BC{V { E G {


+xYi +l x

Z.

xxx E
l

\.

31.3.2011 E {i i E<
|iiEh x*

+|V

( . Ec )

BC{V { E h E +x |ivi +l G EB MB +x ]
|iiEh BC{V*
BC{V { E h E +x + ] |iiEh BC{V

BC{V { E +x MEi vi G EB MB |iiEh E E


+ x E S il |iE xE {VMi o]Eh i z VJ i b
+iH E b=x EB MB vi {V |
l

31.03.2011 E lli

{hi ] 1 {V P]B MB BC{V, E {V P]B MB @h r


+</+ il E {V P]B MB +x BC{V (BC{V { E +x )
45

G
.
].
`.

b.

f.

MhiE |E]Eh: ]bM


E u |iiEi BC{V E E VE B E x EU BC{V vi
E + V BC{V { E +x{ |iiEh V VJ o]Eh
E +vvx *
xxx E
l
BC{V { E h E +x |ivi +l G EB MB +x
] |iiEh BC{V*
l
BC{V { E h E +x + ] |iiEh BC{V
|ivi +l G EB MB |iiEh E E xxx {lE { :
l xn] VJ i {E VJ ={ E +vvx |ivi +l G E
M |iiEh BC{V
l z VJ i b xn] VJ h i |iiEh Sx E
+vvx |iiEh BC{V
xxJi E E
l {V +{I i |iiEh BC{V, z VJ i b i
|iiEh Sx E +vvx
{hi ] 1 {V P]B MB BC{V, E {V P]B MB @h r
+</+ il E {V P]B MB +x BC{V (BC{V { E +x )

46

( < Ec )

Table DF-7
SECURITISATION: DISCLOSURE FOR STANDARDISED APPROACH QUALITATIVE
Position as on 31.03.2011
DISCLOSURES
Qualitative Disclosures
(a) The general qualitative disclosure requirement with respect to securitisation, including
a discussion of:
l
the banks objectives in relation to securitisation activity, including the extent to
which these activities transfer credit risk of the underlying securitised exposures
away from the bank to other entities;
l
the nature of other risks (e.g., liquidity risk) inherent in securitized assets
l
the various roles played by the Bank in the securitization process (e.g., originator,
investor, servicer, provider of credit enhancement, liquidity provider) and an indication of the extent of the Banks involvement in each of them
l
a description of the process in place to monitor changes in the credit and market
risk of securitization exposures (e.g., how the behavior of the underlying assets
impacts securitization exposures as defined in para 5.16.1 of the Master Circular
on NCAF dated 01.07.2009)
l
a description of the Banks Policy governing the use of credit risk mitigation to
mitigate the risks retained through securitization exposures
(b) Summary of the banks accounting policies for securitisation activities, including:
l
Whether the transactions are treated as sales or financings
l
Methods and key assumptions (including inputs) applied in valuing positions retained or purchased
l
Changes in methods and key assumptions from the previous period and impact
of the changes
l
Policies for recognizing liabilities on the balance sheet for arrangements that could
require the Bank to provide financial support for securitised assets.
(c) In the banking book, the names of ECAIs used for securitisations and the types of
securitisation exposure for which each agency is used.

No securitization during the


year ended 31.03.2011

Nil.

Not Applicable

Quantitative Disclosures : Banking Book

SL

(Amount < in Crores)

No
(d) The total amount of exposures securitised by the bank
(e) For exposures securitized, losses recognised by the bank during the current period
broken down by exposure type (e.g., credit cards, housing loans, auto loans, etc.
detailed by underlying security)
(f) Amount of assets intended to be securitized within a year
(g) Of (f), amount of assets originated within a year
(h) Total amount of exposures securitized (by exposure type) and unrecognized gain or
losses on sale by exposure type.
(i) Aggregate amount of:
l

on-balance sheet securitisation exposures retained or purchased broken


down by exposure type and

off-balance sheet securitisation exposures broken down by exposure type

(j) Aggregate amount of securitisation exposures retained or purchased and the


associated capital charges, broken down between exposures and further
broken down into different risk weight bands for each regulatory capital
approach
l

Exposures that have been deducted entirely from Tier 1 capital, credit enhancing I/Os deducted from total capital, and other exposures deducted from
total capital (by exposure type).

47

Nil.

SL

Quantitative Disclosures : Trading Book


(Amount < in Crores)

No
(k)

Aggregate amount of exposures securitised by the bank for which the bank has
retained some exposures and which is subject to the market risk approach, by
exposure type.
(l) Aggregate amount of:
l on-balance sheet securitisation exposures retained or purchased broken
down by exposure type;
l off-balance sheet securitisation exposures broken down by exposure type.
(m) Aggregate amount of securitisation exposures retained or purchased separately
for:
l securitisation exposures retained or purchased subject to Comprehensive
Risk Measure for specific risk; and
l securitisation exposures subject to the securitisation framework for specific
risk broken down into different risk weight bands.
(n) Aggregate amount of:
l the capital requirements for the securitisation exposures, subject to the
securitisation framework broken down into different risk weight bands.
l securitisation exposures that are deducted entirely from Tier 1 capital, credit
enhancing I/Os deducted from total capital, and other exposures deducted
from total capital(by exposure type).

48

Nil.

h bB - 8

V VJ : { V VJ vi |E]Eh
MhiE |E]Eh

31.03.2011 E lli

(E) V VJ :
1.

V VJ E V n, n p x n, <C] + {h i+ E V V E =i-Sg {ix/Sx


=i{z li E Eh E E x x E x E { {i E Vi * V VJ E E BC{V
(BBB + BSB] h) P x (V v Ji B <C]), n p x li =i{z i * V
VJ |vx E =q +M B <C] { x E | E E Ex*
2. V VJ E |vx i xi :
E V VJ | |vx i b u +xni { V VJ |vx xi + +i ni |vx (BBB) xi Ei
* +x xi V V VJ |vx v Ji , x xi, n p {Sx { VJ |vx xi, C E]
]bM i xiMi nxn + i{z xi * xi V VJ E | |vx i v VJ + E i Ei +
xSi Ei E {Sx ={H +i ni |vx E v V VJ E |i E E E |i E +x{ *
xi V VJ E | x]M i {]M Sx E { E Ei *
3.

+i ni |vx xi ] { ii VJ |vx + V n VJ |vx E E v E Ei * ii


VJ E |vx i W E E nxn E +x ={v k b] EV E +v { nxE +v { +i B ni+
E +] {{Ci/Mi {]x E +v { VB{ h E v E Vi * E x +{EE H ii |vx
+ i x Vx E |G +{x< * | +i ni |vx i z +] {{Ci M E B E{h B
xvi E * E E Cb] |< E z Cb] +x{i E v Ei E Vi *

4.

n n +i B ni+ E VB{ h E v V n VJ E |vi E Vi + xvi xEEi + E


v =xE xMx E Vi * vE E E gx E =q V n |iE Sx (xi lxvi) E {I
x V + + <C] E +lE (<<) { | E +Ex i E VJ { Vx + vi +v +i E
+vE +v { +Ei Ei *

5.

E u xvi E{h xnb E xMx +i ni |vx i (BB+)/b u E Vi + +i ni |vx xi


xvi ={ E +x{ V E li (S B |ii) E {I hxi xvi Ei * ]V b + O{ xi
+v { E{h xnb E +x{x E xMx Ei *

{hiE |E]Eh

G .
1.

( < Ec )

V VJ i E {V +EiB

460.18

1.1

V n VJ

1.2

<C] li VJ

2.71

1.3

n x VJ

108.57

348.90

49

Table DF 8
MARKET RISK IN TRADING BOOK
Position as on 31.03.2011

Qualitative Disclosures
a) Market Risk:
1.

Market Risk is defined as the possibility of loss caused by changes/movements in the market variables such as interest
rates, foreign currency exchange rates, equity prices and commodity prices. Banks exposure to Market risk arises from
investments (interest related instruments and equities) in trading book (both AFS and HFT categories) and the Foreign
Exchange positions. The objective of the market risk management is to minimize the impact of losses on earnings and
equity.

2.

Policies for Management of Market Risk:


The Bank has put in place Board approved Asset Liability Management Policy for effective management of Market Risk
in the bank. Other policies, which also deal with market risk management, are Investment policy, Policy on Risk Management of Foreign Exchange Operations, Policy Guidelines for Undertaking Trading in Forex Market and Policy on
Derivatives. The policies set various risk limits for effective management of Market Risk and ensuring that the operations are in line with Banks expectation of return to market risk through proper Asset Liability Management. The policies
also deal with the reporting framework for effective monitoring of Market Risk.

3.

The ALM Policy specifically deals with liquidity risk management and interest rate risk management framework. As
envisaged in the policy, Liquidity Risk is managed through GAP analysis, based on residual maturity/behavioral pattern
of assets and liabilities, on a daily basis based on best available data coverage, as prescribed by the RBI. The bank has
put in place mechanism of Short Term Dynamic Liquidity Management and Contingent Funding Plan. Prudential (Tolerance) limits are prescribed for different residual maturity time buckets for efficient Asset Liability Management. Liquidity
profile of the Bank is evaluated through various liquidity ratios.

4.

Interest Rate Risk is managed through use of Gap analysis of rate sensitive assets and liabilities and monitored through
prudential (tolerance) limits. The Bank estimates Earnings at Risk (EaR) periodically against adverse movements in
interest rate (as prescribed in the policy) for assessing the impact on Net Interest Income and Economic Value of Equity
(EVE) with a view to optimize shareholder value.
The Asset Liability Management Committee (ALCO)/Board monitors adherence of prudential limits fixed by the Bank
and determines the strategy in light of market conditions (current and expected) as articulated in the ALM policy. The
Mid Office at the Treasury also monitors adherence of prudential limits on a continuous basis.

Quantitative Disclosures

SL
No
1.

(Amount < in Crores)


The total capital requirements for Market Risk
1.1

Interest rate risk

1.2

Equity position risk

1.3

Foreign exchange risk

460.18
348.90
2.71
108.57

50

h bB - 9

{SxMi VJ : x |E]Eh

31.03.2011 E lli

MhiE |E]Eh
1. {Sx VJ ii{, +{{i + +iE |G+, H |v P]x+ E
Eh x x E VJ * {SxMi VJ Exx VJ {xi hxiE
|iXMi VJ x *
2. E x b u +xni { {SxMi VJ |vx xi x{i E * {SxMi VJ E |vx
Vc < b u +MEi +x xi : (E) +x{x VJ |vx xi (J) n p VJ |vx
xi (M) +{x OE E Vx (E<) + Bx] x xbM (BBB) vi xiMi niV (P)
Sx |tME xii B +{n xh Vx (R) vJvc VJ |vx xi +n >
3. E u +MEi {SxMi VJ |vx xi MXxbfU Sx B {SxMi VJ E |vx i
|G+ E {] E M * < xi E =q {SxMi VJ E | {
xji, {i, +Yi, Ei B Sxi Ex + iE {SxMi x i {SxMi
VJ E { {]M i ni E {] xnx E u E E nx-|inx E VJ |vx
|G {SxMi VJ |h E BEEi Ex * E lu {SxMi VJ E {E B r,
+iE xjE E E v |vi E *
4. E u V +i nxn E +x E x {SxMi VJ i {V E +Ex E B
EiE n]Eh E +{x *

G .

{hiE |E]Eh

1.

i W E u V +i nxn E +x E x {SxMi VJ i {V E +Ex E B


EiE o]Eh E +{x *

2.

nxn E +x {SxMi VJ i {V, i W E u l{i Mi 3 E vxiE E


E + E 15 |ii E * inx lli 31.03.2011 E {SxMi VJ i {V +{I
< 624.95 Ec *

51

Table DF 9
OPERATIONAL RISK
Position as on 31.03.2011

Qualitative Disclosures
1. Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or
from external events. Operational risk includes legal risk but excludes strategic and reputation risks.
2. The Bank has framed Operational Risk Management Policy duly approved by the Board. Supporting policies
adopted by the Board which deal with management of various areas of operational risk are (a) Compliance Risk
Management Policy (b) Forex Risk Management Policy (c) Policy Document on Know Your Customers (KYC) and
Anti Money Laundering (AML) Procedures (d) Business Continuity and Disaster Recovery Policy (e) Fraud Risk
Management Policy etc.
3. The Operational Risk Management Policy adopted by the Bank outlines organization structure and detailed
processes for management of operational risk. The basic objective of the policy is to closely integrate operational
risk management system into the day-to-day risk management processes of the bank by clearly assigning roles
for effectively identifying, assessing, monitoring and controlling / mitigating operational risks and by timely reporting of operational risk exposures, including material operational losses. Operational risks in the Bank are managed through comprehensive and well articulated internal control frameworks.
4. In line with the final guidelines issued by RBI, the Bank has adopted the Basic Indicator Approach for computing
capital for Operational Risk.

Quantitative Disclosures
1.

In line with the final guidelines issued by RBI, the Bank has adopted the Basic Indicator Approach for
computing capital for Operational Risk.

2.

As per the guidelines, the capital for operational risk is equal to 15% of average positive annual Gross Income
of previous three years as defined by RBI. Accordingly, the capital requirement for operational risk as on
31.03.2011 is < 624.95 Crores.

52

h bB - 10

EM E V n VJ (+<++)

31.03.2011 E lli

MhiE |E]Eh
(E)

EM E V n VJ :
1. V n VJ, VJ E B li V V V n {ix E E k li |i Ei * V
n {ix S Vx (+lE o]Eh) E l E E x i (+lE {{C]) {
| {ci * Vx E o]Eh VJ E x V + (Bx+<+<) x V Vx (Bx+<B) E |
E { { V Ei * < |E +lE o]Eh VJ E <C] E +lE (<<) E E {
{ V Ei *
2. E Vn +{EE (Vx o]Eh) B nPEE (+lE o]Eh) {ix r VJ E {Sx
Ei * + { | (Vx o]Eh) E E E BBB { xvi { 100 {B iE +xxE n
Mi B VB{ h E ={M E v { Vi * Vx { <E | E {Ex i {{Mi +i E
n n h Vi + E J M E v xn +v E +v { {ix E | { V
n {ix E 100 {B iE +E Vi * <E {]M +vE +i { n n h E l BB+
B b E E Vi * Mi E Bx+<+< E +v { <x + E xvi E Vi *
3. E u 200 {B E +xxE V n E E Mi B <C] E +lE (+lE o]Eh) { |
E (|ii { ) +Ex E B {{Mi VB{ h E l l +v VB{ h E +{x Vi *
E u +vE VB{ E h BE E Vi ( +i {]M G E ytkfU\zt E +v {) +
<E mqalt BB+/b E n Vi *
4. E u xvi E{h + E +x{x E x]M/I +i ni |vx i (BB+)/b tht E
Vi + V E li (S B |ii) E +v { hxi i E Vi *

{hiE |E]Eh

G .
1.
2.

V n {ix
1.00%
V n {ix
2.00%

( . Ec )
VJ { +M
33.83

+lE {ix
11.02%

53

Table DF 10
INTEREST RATE RISK IN THE BANKING BOOK (IRRBB)
Position as on 31.03.2011

Qualitative Disclosures
(a) Interest Rate Risk in the Banking Book:
1.

Interest Rate Risk is the risk which affects the banks financial condition due to changes in the market interest rates.
Changes in interest rates affect both the current earnings (earnings perspective) as also the net worth of the Bank
(economic value perspective). The risk from earnings perspective can be measured as impact in the Net Interest
Income (NII) or Net Interest Margin (NIM). Similarly, the risk from economic value perspective can be measured in the
Economic Value of Equity (EVE).

2.

The Bank identifies the risks associated with the changing interest rates in short term (Earnings perspective) and long
term (Economic value perspective). The impact on income (Earnings perspective) is measured through use of Gap
analysis by applying notional rate shock up to 100 bps as prescribed in Banks ALM Policy. For the calculation of
impact on earnings, the Traditional Gap is taken from the Interest Rate Sensitivity Statement and based on the remaining period from the midpoint of a particular bucket and the impact for change in interest rate up to 100 bps is arrived at.
The same is reported to ALCO & Board along with the Interest Rate Sensitivity Statement periodically. The limits are
fixed on the net worth.

3.

The bank has adopted Traditional Gap Analysis combined with Duration Gap Analysis for assessing the impact on the
Economic Value of Equity (Economic Value perspective) by applying a notional interest rate shock of 200 bps. The
Duration Gap Analysis is calculated by the bank once in a month (based on the Last Reporting Friday data) and is
reported to ALCO and Board.

4.

The Asset Liability Management Committee (ALCO) / Board monitors/reviews adherence of prudential limits fixed by
the bank and determine the strategy in light of the market condition (current and future).
(Amount < in Crores)

SL
No.
1.

2.

Quantitative Disclosures

Change in Interest Rate

Earning at Risk

1.00%

33.83

Change in Interest Rate

Change in Economic Value

2.00%

11.02%

54

Eh{tu] Mxx { {]

REPORT ON CORPORATE GOVERNANCE

1. Eh{tu] Mxx E nx :
<n E E Eh{tu] xi, Eh{tu] Mxx E og rxi
{ +vi * +l-l E Vi, ] |lEi+ il
Eh{tu] E E l l vE E i E +ivE x
ni * E +{x i Miv E Ij =iE]i Ex
E B =SS xiE , {ni il +xi o]Eh
Ji * E J{x il { {]i E l k +i]
|Si xnb E +x{x E B |ir V E E OE
il vE E E {{ M* E xxJi
E v Eh{tu] =iE]i Ex Si *
l
n E Exx fS il xiE E ri E +vx
vE E x xB Jx*
l
+{x OE E k |nx Ex*
l
+{x OE il ES, xE + V E +x iE
E B BE J B l li i Ex*
l

1. Corporate Governance Philosophy


Allahabad Banks corporate policy is based on sound principles
of Corporate Governance. It holds high the shareholders value
while catering also to the need of the economy, national
priorities and corporate growth. The Bank believes in high
standard of ethical values, transparencies and disciplined
approach to achieve excellence in all fields of activities. It is
also committed to comply with the best international practices
coupled with openness and fairness, which will lead the Bank
to enjoy from customers and shareholders a Tradition of Trust.
The Bank seeks to proclaim corporate excellence by

V E M E B x{I B x x xSi
Ex E B G |vx xSi Ex*

2. xnE b
2.1 xnE b E M`x EM x +vx 1949, EM
E{x (={G E +Vx B +ih) +vx 1970 il
]Ei E (|vx B |Eh |vx) Vx 1970 u
i i * xnEMh b E x{hi E vi il
ii +x |nx Ei V E E nI B x{I
xn |{i i *

Upholding the shareholders value within the principles of


ethics and legal framework of the country.

Extending best of services to its customers.

Proclaiming a free and fair environment for its customers


and employees, investors and other sections of the society
at large.

Ensuring a proactive management free from bias, ensuring


fair justice to all sections of the society.

2.

Board of Directors

2.1 The constitution of Board of Directors is governed by the


provisions of the Banking Regulation Act, 1949, Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1970 and Nationalized Banks (Management &
Miscellaneous Provisions) Scheme 1970. The Directors
bring in wide range of expertise and experience to the
Board, facilitating proficient and unbiased direction to the
Bank.

+vI B |v xnE il n E{E xnE i


E u xH ;el {hEE xnE * +x xnE
xxJi :

The Chairman & Managing Director and two Executive


Directors are three whole time Directors appointed by the
Government of India. The other Directors include the
following:(a) A representative each of

(E) xxJi |iE E BE |ixv :


i)
i E
ii) EM
iii) +vE ES (rVUtntt v= rhU ni)
(J) hVE E E xx +l {Ih E E v
+E Yi + +x Jx BE xnE E
i V E E ii { Exp E u xi E
Vi *
(M) ix ij vE xnE
(P) i E u xH xn JE xnE

i)

Government of India (GOI)

ii)

Workmen

iii)

Officers Employees (Presently lying vacant)

(b) One director possessing necessary expertise and


experience in the matter relating to regulation or
supervision of commercial bank, to be nominated by the
Central Govt. on the recommendation of RBI
c) Three Independent Shareholders Directors
d)

(R) ix +EE M-E xnE (rVUtntt BE v= rhU


ni)
2.2. b E i

One Chartered Accountants Director appointed by


Government of India

e) Three part-time Non-Official Directors (One post presently


lying vacant)
2.2 Committees of Board

b x xxHx z i E M`x E V i{h


EiE Ij B Expi Mxx |nx Ei n B E
E E xjh Ei n :

The Board has constituted various committees as mentioned


hereunder which provide specific and focused governance in
the important functional areas and controls the affairs of the
Bank: -

55

q
q
q
q
q
q
q
q
q
q
q
q
q

b E |vx i (B+b)
b E J{I i (B)
VJ |vx i (+B)
xnE E {nzi i (b{)
vE/xE E Ei i (B+<V)
Sx |tME ={i (+<]B)
vJvc xMx i (BB)
OE i (B)
{v i ({.)
xEx i (x. )
+ih i (B])
}] G i (B{)
+]x i (BB)

q
q
q
q
q
q
q
q
q
q
q
q
q

2.3 b E ni xi E xvh, x< {, Ex{nx


I il xjh B E E z EvE E |iVi
+vE E {cx E Ei * b x
z i E M`x E il z EiE Ij
+vE E |iVx E * b il =E i +vE
+i { ` E Ei *
2.4 lli 31.03.2011 E xnE b E P]x xxi :

1.
2.
3.
4.

{nx

Name

Designation

6.
7.
8.

2.3 The responsibilities of the Board include formulation of


policies, new initiatives, performance review and control
and sanction of cases falling beyond the powers delegated
to various functionaries of the Bank. Board has constituted
various committees and delegated powers for different
functional areas. The Board as well as its committees
meets at periodic intervals.
2.4 The composition of the Board of Directors as on
31-03-.2011 was as under:

xH E il

10.
11.
12.

+x b<C]{
E .

Date of

Membership

No of other

appointment

of other Board

Directorship(s)

& Committees

+vI B |v xnE

Shri J.P. Dua

Chairman & Managing Director

04-12-2009*

10

Shri D. Sarkar

B. +. xE

Executive Director

E{E xnE

07-12-2009

Shri M.R. Nayak

Executive Director

22-01-2010

B.

E u xi xnE

b. E

E{E xnE

i Ei J

E u xi xnE

RBI Nominee Director

30-07-2010

Smt. Sukriti Likhi

Government Nominee Director

10-06-2008

Shri R.M.Chaturvedi

Chartered Accountant Director

14-07-2010

{. . Mbd

+EE M-E xnE

Shri P.V.Gudireddy

Part Time Non Official Director

28-04-2008

b. E-=W-Wx +

+EE M-E xnE


08-05-2008

16-08-2010

Shri Deveshwar Kumar Kapila Shareholders Director

b. xi EVM

vE xnE

30-06-2008

Dr. Vasant Baburao Kaujalgi

Shareholders Director

12-06-2009

03-06-2010

+. B. Sin

xn JE xnE

Dr. Shakeel-Uz-Zaman Ansari Part Time Non Official Director


9.

+x b i
E ni

V.{. n+

Shri S. Ramaswamy
5.

Management Committee of the Board (MCBOD)


Audit Committee of the Board (ACB)
Risk Management Committee (RMC)
Directors Promotion Committee (DPC)
Shareholders/ Investors Grievances Committee (SIGC)
Information Technology sub Committee (ITSC)
Fraud Monitoring Committee (FMC)
Customer Service Committee (CSC)
Remuneration Committee (Remu. Comm)
Nomination Committee ( Nom. Com)
Share Transfer Committee (STC)
Flat Purchase Committee((FPC)
Share Allotment Committee(SAC)

M n

EM xnE

Shri Gour Das

Workmen Employee Director

n E E{

vE xnE

n{ Sv

vE xnE

Shri Sudip Chaudhuri

Shareholders Director

* e su. ve. =qyt 07-11-2007 mu 03-12-2009 ;fU cfU fuU fUtgovttfU rl=uNfU :u
* Shri J.P. Dua was the Executive Director of the Bank from 07-11-2007 to 03-12-2009

56

x] :
(i) b E E< xnE 10 +vE i E n x
=x i E{x , VxE xnE , {S J
i/vE Ei i +vE i E +vI
x *

Note:

E< xnE BE n E in x *
2.5 k 2010-11 E nx E E b xH/
xSi E E Oh Ex xnE E {S
xxx :
2.5.1 B. , E u xi xnE
B. x 1982 < W E V<x E*
=xx < E Ij E + Exp E z {n
{ E E* =xx E E Sz<, {,xM{ B jxp E
Ij E E E * ix , Exp E,
< J |vE(VB), B V] xjh E {n {
Ei * <E { E B Iu{ E Ij xnE (+b)
E { jxp Ei l*
nxE 30.07.2010 <n E i xnE
Ei * BB E l hV xiE il =xx .B.B.
E bE t +i] E xi BB E
* ]x B nxj S Ji * =xx x vx
E B E EM i E *
2.5.2 +.B,Sin, E u xi xn JE
xnE
Sin +x E l hV xiE il xn JE E
E E * =x x EM, Sx] EM, |VC] b],
bEx, b+, |<] <C] bM, |VC] ]< {]
i Ex + E{] =v ={v Ex E v E{]
{ |nx Ex 26 E {E +x *
Sin ix +.B. Sin Bhb E{x, xn
JE x EM B E{] ]C E {v
{ ={v E *
Sin x E xn JE h E +xiMi +EE ME xnE E { ix E +v E B nxE
14.07.2010 E E Oh E*
2.5.3 M n, EM xnE
M n hV E xiE * =xx <n E 1973
V<x E + ix |vx E, Jx O M
E E {n { Ei *
M n BE +SU H E l-l +J i E EM
P E ii E ES n E <xn xx xi *
ix , +J i <n E ES x i
(B+<B<) E S, +J i E ES P
( B+<<B) E H S, M |xi E ES P ({<B)
E S + <n E EM xx (Bb)({..) E
S E {n B *
n B+<<B E + i |ixv b E n E
{ + i EM { M` M x i E +
Mn E n E SE *
(ii)

(i)

None of the directors on the Board is a member in more


than 10 committees or acts as Chairman of more than
five Audit Committee/ Shareholders Grievance
Committees across all companies in which he is a
director.

(ii)

None of the Directors are relative of each other

2.5 The profile of the directors who were appointed/ elected


on the Board of the Bank and assumed office during the
financial year 2010-11 is furnished hereunder:
2.5.1 Shri S. Ramaswami , R.B. I. Nominee Director
Shri S. Ramaswamy joined Reserve Bank of India in 1982 at
Mumbai. He worked in various capacities at Regional Office
and Central Office at Mumbai. He also worked at Regional
Offices of RBI at Chennai, Bhopal, Nagpur and Trivendrum. At
present he is working as Chief General Manager (CGM),
Expenditure & Budgetary Control, at Central Office, Mumbai.
Prior to this he was working as Regional Director (RD) of Kerala
& Lakshadeep at Trivendrum.
Shri Ramaswamy is associated with Allahabad Bank as
Director since 30.07.2010. He is a commerce graduate with
MBA and completed his M.A. in International Development
Policy from Duke University, USA. His hobbies include Tennis
& Philosophy. He has specialized in Human Resource
Development and Development Banking.
2.5.2 Shri R.M. Chaturvedi, Government Nominee
Chartered Accountant Director
Shri Chaturvedi is a commerce graduate with Honors and
practicing Chartered Accountant. He has 26 years of vast
experience in the ambit of Investment Banking, Merchant
Banking, Project Debt, Syndication, CDR, Private Equity
Funding, preparing Project TEV report and Corporate Advisory
to lending Corporate.
Shri Chaturvedi is presently providing all advices within the
ambit of Investment Banking & Corporate Tax Law from M/s
R. M. Chaturvedi & Co., Chartered Accountants.
Shri Chaturvedi has joined the Bank as Part Time Non-Official
Director under Chartered Accountant category w.e.f.
14.07.2010 for a period of three years.
2.5.3 Shri Gour Das, Workmen Employee Director
Shri Gour Das is a Commerce graduate. He joined Allahabad
Bank in the year 1973 and presently working as Special
Assistant at Head Office, Stationery Department.
Shri Gour Das is a good orator and staunch Trade Union
Leader of Bank Employees Community under the banner of
AIBEA. Presently, he is holding the posts of General Secretary
of All India Allahabad Bank Employees Coordination
Committee (AIABECC), Joint Secretary of All India Bank
Employees Association (AIBEA), Secretary of Bengal
Provincial Bank Employees Association (BPBEA) and General
Secretary of Allahabad Bank Workers Union (ABWU) (W.B.).
Shri Das had visited Srilanka and Bangladesh as a member
of Indian delegation on behalf of AIBEA and for attending
Seminar on Indian Banking.

57

n x nxE 16.08.2010 ix E +v E B E E
xnE b EM ES xn E { E *
2.5.4 n{ Sv , vE xnE
n{ Sv x 1976 =SSi hfU (|l h ) E l
EEi t +lj B.B. + 1985 x<
n E V lunh t +lj {BS.b.
E * Sv 1990 EEi E i |v lx
| ( +lj ) E { Ei *
] B +i] {jE+ =xE +xE J |Ei B
Vx '={Ii i x< n< i Ex i + B
b' { J M J xxi , VE |Ex <]xx
Vx + ]CxV Bhb M<Vx x *
Sv x i W E, i +tME E E, i
E hV B =tM j H ] E EG
(Bxb{), xE, l M`x (bBS+), Vx i
{ni E { +{x B |nx E * =xx xji H
E { +xE +i] x M Vx |J
(i) V '<b V =l +E BEbE ; B {
bM',(ii) Vx '+<]Bb/Bx]Bb =b ]';
(iii) bxE 'Ih, xxh B nIi xh |h E +lj
i E x]E { 'C E'; E t
x E <]CS+ |{] i xB o]Eh { x*
Sv x nxE 03-06-2010 E E xnE b vE
xnE E { E B 29-06-2011 iE E EM *
3. 2010-11 E nx +Vi b / i E ` E E
h

Shri Das has joined the Board as Workmen Employee Director


w.e.f. 16.08.2010 for a period of three years.
2.5.4 Shri Sudip Chaudhuri, Shareholders Director
Shri Sudip Chaudhuri completed his M.A. in Economics from
Calcutta University in 1976 with highest rank (first class first)
and Ph.D. in Economics from Jawaharlal Nehru University,
New Delhi in 1985. Shri Chaudhuri has been serving Indian
Institute of Management, Calcutta as Professor (Economics
Group) since 1990.
He has many publications in National & International journals.
The latest one is on R & D for development of new drugs for
neglected diseases which is forthcoming in International
Journal of Technology and Globalization.
Shri Chaudhuri served as a consultant for Reserve Bank of
India, Industrial Development Bank of India, Government of
India, Ministry of Commerce & Industry, United Nations
Development Programme (UNDP), New York, World Health
Organization (WHO), Geneva. He attended many international
conferences as an invited speaker, prominent of which are (i)
India Brazil South Africa Academic Forum: A Policy Dialogue
at Brazil; (ii) ICTSD/UNCTAD Roundtable at Geneva; (iii)
BRICS Workshop, the global network for the Economics of
learning, Innovation & competence building system, at
Denmark; and Conference on new approaches to intellectual
property, at Columbia University, New York.
Shri Chaudhuri joined the Board as shareholders Director with
effect from 03-06-2010 and will hold office upto 29-06-2011.
3.

3.1 `E ix B {U xnE E ={li E h*


f{Uk0
mk0
S.N.

xnE
E x
Name
of Director

B
B

{v x.
B i i

B
]

B
{

B
B

BOARD

MCB

ACB

RMC

DPC

SIGC ITSC

FMC

CSC

Remu.
Com.

Nom
Com

STC

15

22

18

15

22

18

13

20

17

15

15

11

FPC SAC

i VMxn E
Smt. Joginder Kaur *

B +<
+< V ] B

{. . Mbd
Shri P.V.Gudireddy

b
{

b. E =W Wx +
Dr. Shakeel-Uz- Zaman Ansari

+
B

i Ei J
Smt Sukriti Likhi

B
B
B

n i
Shri Mohammad Tahir*

B
B
B

B.+. xE
Shri M.R. Nayak

b. E
Shri D. Sarkar

3.1 Details of the meetings attended by Present and Past


Directors.

V.{. n+
Shri J.P. Dua

Details of the Board/Committee meeting held during


financial year 2010-11

B.
Shri S. Ramaswamy

58

f{Uk0
mk0
S.N.

xnE
E x
Name
of Director

B
B
B

B
B
B

+
B

b
{

B +<
+< V ] B

B
B

{v x.
B i i

B
]

B
{

B
B

BOARD

MCB

ACB

RMC

DPC

SIGC ITSC

FMC

CSC

Remu.
Com.

Nom
Com

STC

15

15

11

10

11

10

11

FPC SAC

+. B. Sin

10

Shri R.M.Chaturvedi

n E E{

11

Shri Deveshwer Kumar Kapila

b. xi EVM

12

Dr. Vasant Baburao Kaujalgi

n{ Sv

13

Shri Sudip Chaudhuri


14

E. E. bM*

15

M n

Shri K. K. Dogra*

Shri Gour Das

*{U xnE / * Past directors


3.2 ]Ei E (|vx B |Eh |vx) Vx 1970 E Jb
12 E +iMi xvi xxi 6 ` E E {I Ivx +v
E nx xxH il E 15 b ` E +Vi E M< l*

3.2 During the period under review 15 Board Meetings were


held as detailed below as against requirement of minimum
6 meetings under clause 12 of Nationalized Bank
(Management and Miscellaneous Provisions) Scheme,
1970.

`E E il

b xnE E J

={li xnE E J

Date of meeting

No. of Directors on Board

No. of Directors attended

16-04-2010

11

10

30-04-2010

11

09

18-05-2010

11

10

10-06-2010

12

09

26-06-2010

12

10

22&23-07-2010

13

13

28-08-2010

14

13

24-09-2010

14

13

21-10-2010

14

13

10

15-11-2010

14

13

11

11-12-2010

14

11

12

14-01-2011

13

13

13

28-01-2011

13

10

14

18-02-2011

12

10

15

28-03-2011

12

10

4. b E i
4.1.1 b E |vx i
k j, i E E nxn E l {`i ]Ei
E (|vx B |Eh |vx) Vx 1970 E Jb-13 E +x
b E |vx i E M`x E M*

4.

4.1.2 |vx i E P]x


lli 31.03.2011 E b E |vx i xxH n
l :-

4.1.2 Composition of the Management Committee

Committees of the Board

4.1.1 Management Committee of the Board


In pursuance of clause 13 of Nationalized Bank (Management
& Miscellaneous Provisions) Scheme, 1970 read with the
directives of the Ministry of Finance, Government of India, a
Management Committee of the Board has been constituted.
The members of the Management Committee of the Board as
on 31-03-2011 were:

59

1. V.{. n+
2.
3.
4.
5.

b. E
B.+ xE
B.
V B. Sin

6. {. . Mbd

+vI B |v xnE

1. Shri J.P. Dua

Chairman & Managing


Director

E{E xnE
E{E xnE
E u xi xnE
xn JE xnE

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Shri S. Ramaswamy

RBI Nominee Director

5. Shri Rajesh M. Chaturvedi

Chartered Accountant
Director

+EE M E xnE

7. M n
EM xnE
8. b. xi EVM vE xnE

6. Shri P.V. Gudireddy

Part Time Non Official


Director

7. Shri Gour Das

Workmen Employee Director

8. Dr. Vasant Baburao


Kaujalgi

i E +vIi V.{. n+, +vI B |v xnE u E


M<*
4.1.3 |vx i E E
|vx i E E =SS E |i E Ei, Zi/
]] Ji bx, {VMi il V E Ei V i{h
E { S Ex il +vI B |v xnE B
E{E xnE E |iVi +vE E ={M E I
Ex * i x M, +x{V +i V i{h
Ij Ex{nx il b u i E ni +x i{h
|vx xh E I Ei *
4.1.4 i E `E E h
01.04.2010 31.03.2011 E nx xxJi il E
|vx i x 22 ` E +Vi E:

Shareholders Director

The Committee is chaired by Shri J.P. Dua, Chairman &


Managing Director.
4.1.3 Function of the Management Committee
The function of the Management Committee is to consider
various business matters of material significance like sanction
of high value proposals, compromise/write off, sanction of
capital & revenue expenditure and review the exercise of
delegated authority by the Chairman & Managing Director and
the Executive Director(s). The Committee also reviews the
performance of key areas like investment portfolio, nonperforming assets and other important management decisions
referred to the Committee by the Board.
4.1.4 Details of the meeting of the Committee
The Committee met 22 times during the period 01.04.2010 to
31.03.2011 as detailed below

`E E il

b E |vx i E xnE E .

={li xnE E .

Date of Meeting

No. of Directors on the Management


Committee of Board
7
7
7
7
7
7
7
8
7
8
8
8
8
8
8
8
8
8
8
8
8
8

No. of Directors attended

09-04-2010
16-04-2010
30-04-2010
18-05-2010
09-06-2010
26-06-2010
17-07-2010
22-07-2010
10-08-2010
28-08-2010
13-09-2010
24-09-2011
11-10-2010
20-10-2010
15-11-2010
01-12-2010
20-12-2010
14-01-2011
27-01-2011
17-02-2011
14-03-2011
28-03-2011

60

7
7
7
7
6
7
7
8
7
8
7
8
7
7
7
7
7
8
7
7
7
7

4.2.b E J{I i (B) :


4.2.1 i W E E nxn il E{hu] Mxx E
ri E +x E x 31.05.1994 E BE J{I i
E M`x E il = - { {xM`i E*

4.2

4.2.2 J{I i E P]x :


lli 31.03.2011 E b E J{I i xxH
n l :1. b. E
E{E xnE
2. B.+. xE
E{E xnE
3. i Ei J
E u xi xnE

4.2.2 Composition of the Audit Committee:

4. B.
5. V B. Sin

E u xi xnE
xn JE xnE

4. Shri S.Ramaswamy

6. n E E{

vE xnE

Audit Committee of the Board (ACB)

4.2.1 In pursuance to the directives of Reserve Bank of India


and having regard to the fundamentals of Corporate
Governance, the Bank originally constituted an Audit
Committee on 31.05.1994 and reconstituted the same
from time to time.
The member of the Audit Committee of the Board, as on
31-03-2011 were;
1. Shri D. Sarkar
2. Shri M.R. Nayak
3. Smt. Sukriti Likhi

Executive Director
Executive Director
Government Nominee
Director
RBI Nominee Director

5. Shri Rajesh M. Chaturvedi Chartered Accountant


Director
6. Shri Deveshwar
Kumar Kapila
Shareholders Director

i E +vIi n E E{, vE xnE,


u E M<*

The committee is chaired by Deveshwar Kumar Kapila


Shareholders Director.

4.2.3 J{I i E E :
J{I i E J E E E k {]M |h E Ex
B =E I Ex iE h E ii, {{ii B xi
xSi E* b E I |ii EB Vx { i |vx
E l E k {h E I Ei *

4.2.3 Function of Audit Committee:


The main function of Audit Committee is to assess and review
the financial reporting system of the Bank to ensure that the
financial statements are correct, sufficient and credible. It
reviews with the management the annual financial statements
before their submission to the Board.

J{I i xn ni il E E +iMi M`x, {Sx il The Audit Committee provides direction and oversees the
+iE J{I + xIh E Mhk xjh i E E i operations of total audit function of the Bank including the
operation and quality control of internal audit and
J{I E E {Sx E { Ih Ei il E E vE/ organization,
inspection within the Bank and follow up on the Statutory/
J{I B E E xIh { +xi E < Ei *
External audit of the Bank and RBI inspections.
i +iE xjh |h E {{ii, +iE J{I M The Committee also reviews the adequacy of internal control
E Sx, <E ]M {]x E I Ei il E i{h system, structure of internal audit department, its staffing
xE { +iE J{IE/xIE E l S- + pattern and discussion with the internal auditors/Inspectors
=x { +xi E< Ei * <E +iH E E k on any significant finding and follow-up action thereon. It further
reviews the financial and risk management policies of the Bank.
B VJ |vx xi E I Ei *
vE J{I E , J{I i E/i k J Regarding Statutory Audit, the Audit Committee interacts with
+ {] E +i { nx { Exp vE J{IE E l the Central Statutory Auditors before finalization of Annual/
Financial Accounts and Reports. It also follows up
S- Ei * M J{I {] (BBB+) {] Quarterly
on various issues raised in the Long Form Audit Report (LFAR).
=`B MB z q { +xi E < Ei *
4.2.4 Details of Meeting
4.2.4 ` E E h 01.04.2010 31.03.2011 E nx xxJi il E During the period 01.04.2010 to 31.03.2011, 9 meetings of
the Audit committee of the Board were held as detailed below.
b E J{I i E 9 ` E +Vi E M<:
`E E il
b E J{I E xnE E .
={li xnE E .
Date of Meeting
09-04-2010
30-04-2010
16-07-2010
22&23-07-2010
13-09-2010
21-10-2010
16-11-2010
28-01-2011
04-03-2011

No. of Directors on the


Audit Committee of Board
5
5
5
6
6
6
6
6
6

61

No. of Directors attended


4
4
4
6
5
6
4
4
5

4.3 VJ |vx i :

4. 3 Risk Management Committee

4.3.1 b E VJ |vx i :

4.3.1 Risk Management Committee of the Board:

i V E E nxn E +x 04 S, 2003 E b
E VJ |vx i E M` x E M B - {
<E {xM` x E M *
4.3.2 b E VJ |vx i E P]x :

In pursuance of the directives of the Reserve Bank of India, a


Risk Management Committee of the Board was constituted
on March 4, 2003 and it was reconstituted time to time.
4.3.2 Composition of the Risk Management Committee of
the Board:

lli 31.03.2011 E i xxH n l :-

The members of the Committee as on 31.03.2011 were

1. V.{. n+

+vI B |v xnE

1. Shri J.P. Dua

2. b. E
3. B.+ xE
4. V B. Sin

E{E xnE
E{E xnE
xn JE xnE

5. b. E =W Wx + +EE M E xnE

Chairman & Managing


Director

2. Shri D. Sarkar

Executive Director

3. Shri M. R. Nayak

Executive Director

4. Shri Rajesh M. Chaturvedi

Chartered Accountant
Director

5. Dr. Shakeel-Uz-Zaman
Ansari

Part Time Non Official


Director

6. n E E{

vE xnE

6. Shri Deveshwar Kumar

7. n{ Sv

vE xnE

7. Shri Sudip Chaudhuri

Kapila

Shareholders Director
Shareholders Director

i E +vIi V.{. n+, +vI B |v xnE u E


M<*
4.3.3 b E VJ |vx i E E :

The Committee is chaired by Shri J.P Dua, Chairman &


Managing Director.

VJ |vx i @h, V + {Sx VJ i E


E z VJ x E B BEEi VJ |vx i xi
il hxi x{i Ei *

The Risk Management Committee devise the policy and


strategy for integrated risk management containing various
risk exposures of the Bank including Credit, Market &
Operational risk.

4.3.4 `E E h -

4.3.4 Details of the Meeting

01.04.2010 31.03.2011 E nx VJ |vx i E 4


` E +Vi < VxE h xxEi -

The Committee met 4 times during the period 01-04-2010 to


31-03-2011 as detailed below.

`E E il

18-05-2010

b E VJ
|vx i E
xnE E .
7

4.3.3 Function of Risk Management Committee of the


Board

={li xnE
E .

Date of Meeting

No. of Directors No. of Directors


on the Risk Manageattended
ment Committee
of Board.

18-05-2010

24-09-2010

24-09-2010

01-12-2010

01-12-2010

04-03-2011

04-03-2011

4.4 xnE {nz i i (b{) :

4.4. Directors Promotion Committee (DPC)

4.4.1 b E xnE {nz i i:


E x i E, k j (EM |M)E xn E +xh
xnE {nzi i E M`x E + < - {
{xM` i E M *

4.4.1 Directors promotion committee of the Board:


The Bank in pursuance to the directives of Govt. of India,
Ministry of Finance (Banking Division) constituted Directors
Promotion Committee and the same was reconstituted from
time to time.

62

4.4.2 xnE E {nz i i E P]x :

4.4.2 Composition of the Directors Promotion


Committee:

lli 31.03.2011 E xnE E {nzi i xxH


n l :1. V.{. n+
: +vI B |v xnE
2. i Ei J
: E u xi xnE
3. B.
: ++< u xi xnE
i E +vIi, V.{ n+, +vI B |v xnE u E
M<*

The members of the Committee of Directors as on 31-03-2011


were
1. Shri J.P. Dua

Chairman & Managing Director

2. Smt Sukriti Likhi

Govt. Nominee Director

3. Shri S.Ramaswamy

RBI Nominee Director

The Committee is chaired by Shri J.P. Dua, Chairman &


Managing Director

4.4.3 xnE E {nz i i E E :

4.4.3 Function of the Directors Promotion Committee:

xnE E {nz i i E M`x iEi B M-iEi +xxE


E x{]x E I Ex B Et{] Mxx B VJ
|vx |h E v i V E B i E E
nxn E +x +ii{h +x E I Ex E
B E M *

The Directors Promotion Committee has been constituted to


review disposal of vigilance and non-vigilance disciplinary
cases and other cases of strategic importance in terms of
Reserve Bank of India (RBI) and Government of India (GOI)
guidelines on Corporate Governance and Risk Management
System.

4.4.4 `E E h01.04.2010 31.03.2011 E nx xxH il E i


x 5 ` E +Vi E rslfUt rJJhK rlltkrfU; nuui`E E il

4.4.4 Details of the Meeting


The Committee held 5 meetings during the period 01.04.2010
to 31.03.2011 as detailed below:

xnE {nz i
i E xnE
E .

={li xnE
E .

16-04-2010

16-04-2010

26-06-2010

26-06-2010

24-09-2010

24-09-2010

01-12-2010

01-12-2010

28&29-03-2011

28&29-03-2011

Date of Meeting

No. of Directors No. of Directors


on the Directors
attended
Promotion
Committee

4.5 vE/xE E Ei i

4.5 Shareholders/ Investors Grievances Committee

4.5.1 E x vE + xE E Ei E xh E
|Vxl i: 04 S, .2003 E vE/xE E Ei
(xh) i E M` x E * i E - { {xM` x
E M*

4.5.1 The Bank originally constituted the Shareholders/


Investors Grievances Committee on March 4, 2003 with a
purpose of redressal of shareholders and investors grievances
/ complaints. The committee was reconstituted time to time.

4.5.2 vE/xE E Ei i E P]x :

4.5.2 Composition of the Shareholders/ Investors


Grievances Committee

31.03.2011 E lli i E xxH n l :

The members of the Committee as on 31-03-2011 were as


under:

1. b. E
E{E xnE
2. B.+. xE
E{E xnE
3. b. E-=W-Wx-+ +EE M E xnE

1. Shri D. Sarkar

Executive Director

2. Shri M.R. Nayak

Executive Director

3. Dr. Shakeel-Uz-Zaman Ansari

Part Time Non


Official Director

4. b. xi EVM

4. Dr. Vasant Baburao Kaujalgi

Shareholders
Director

vE xnE

63

i E +vIi EVM, vE xnE u E


Vi B. . ^SV, |vE, (k B J) me YVU ytu
E E E +x{x +vE E { xq] E M *

The Committee is chaired by Dr. V.B. Kaujalgi, Shareholders


Director. Shri A.B.Bhattacharjee, General Manager( Finance
& Accounts) & CFO has been designated as Compliance
Officer of the Bank.

4.5.3 vE/xE E Ei i E E

4.5.3 Function of Shareholders/Investors Grievances


Committee:

i xSi Ei E |h{j lxxih,


bVx Ex, xEh +n i +nx E il BE x E
+v E +n V VB* <E +iH, i xE E
Ei E r xh E x]M Ei * E E
Ivx E n x 1636 Ei |{i < Vx E
xh xE E i] E +x{ E V SE *

The Committee ensures that all Share Certificates are issued


within a period of one month of the date of lodgment for transfer,
sub-division, consolidation, renewal etc. The Committee further
monitors the redressal of investors complaints in a time bound
manner. The Bank received 1636 number of complaints during
the year under review and all the complaints have been
resolved to the satisfaction of investors.

4.5.4 ` E E h

4.5.4 Details of the Meeting

01.04.2010 31.03.2011 E nx i x 1 ` E +Vi


E*

The Committee held one meeting during the period 01.04.2010


to 31.03.2011 as detailed below:

`E E il

vE/xE E
Ei i E
xnE E .

24-09-2010

={li xnE
E .

Date of Meeting

No. of Directors

No. of Directors

on the Shareholders

attended

/ Investors Grievance
Committee

24-09-2010

4.6 b E Sx |tME (+<] ={-i) ={-i

4.6

4.6.1 E E z Sx |tME {Vx+ E Exx


E xMx i E x 24 +| 2003 E +<] ={-i M`i
E V - { {xM`i E M*

+vI B |v
xnE

2. b. E
3. B.+. xE
4. i Ei J

E{E xnE
E{E xnE
E u xi xnE

5. n E E{
6. b. xi EVM

vE xnE
vE xnE

7. n{ Sv

vE xnE

Information Technology Sub-Committee (IT SubCommittee)

4.6.1 The Bank constituted the IT Sub-Committee on April


24, 2003 and it was further reconstituted time to time
to monitor the implementation of various Information
Technology projects of the Bank.

4.6.2 b E +<] ={-i E P]x :


lli 31.03.2011 E ={-i xxH n l :1. V.{. n+

4.6.2 Composition of the IT Sub-Committee of the Board:


The members of the sub Committee as on 31-03-2011 were
as under:
1. Shri J.P. Dua

Chairman & Managing


Director

2. Shri D. Sarkar

Executive Director

3. Shri M. R. Nayak

Executive Director

4. Smt. Sukriti Likhi

Government Nominee
Director

5. Shri Deveshwar Kr Kapila

Shareholders Director

6. Dr. Vasant Baburao


Kaujalgi
7. Shri Sudip Chaudhuri

i E +vIi V.{. n+, +vI B |v xnE u E


Vi *
4.6.3 b E +<] ={-i E E

Shareholders Director
Shareholders Director

The Committee is chaired by Shri J.P. Dua, Chairman &


Managing Director.
4.6.3 Function of the IT Sub-Committee:

i E M`x E E z +<] {Vx+ E Exx E


xMx i E M *

This Committee was constituted to monitor the implementation


of various IT projects of the Bank.

64

4.6.4 `E E h 01.04.2010 31.03.2011 E n x i E 8 `E xxJi


il E +Vi < rslfUt rJJhK rlltkrfU; nuui`E E il
ctuzo fUe ytRoxe Wv ={li xnE
i E xnE
E .
E .
18-05-2010
21-06-2010
10-08-2010
13-09-2010
11-10-2010
15-11-2010
01-12-2010
18-02-2011

6
7
7
7
7
7
7
7

4.6.4 Details of the Meeting


This Committee held 8 meetings during the period
01.04.2010 to 31.03.2011 as detailed below:
Date of Meeting

5
5
6
7
5
6
5
6

No. of Directors No. of Directors


on the IT Sub
attended
-Committee of Board

18-05-2010
21-06-2010
10-08-2010
13-09-2010
11-10-2010
15-11-2010
01-12-2010
18-02-2011

6
7
7
7
7
7
7
7

5
5
6
7
5
6
5
6

4.7 vJvc xMx i


4.7.1 b E vJvc xMx i
E x BE Ec {B + +vE E vJvc E E xMx
+ +xi E < i 28.02.2004 E vJvc xMx i E
M`x E + < - { {xM`i E M *

4.7. Fraud Monitoring Committee

4.7.2 b E vJvc xMx i E P]x

4.7.2 Composition of the Fraud Monitoring Committee of


the Board:

4.7.1 Fraud Monitoring Committee of the Board:


The Bank has constituted Fraud Monitoring Committee on
28.02.2004 and reconstituted the same from time to time with
a purpose to monitor and follow up cases of frauds involving
amount of Rupees One crore and above.

lli 31.03.2011 E i xxH n l :1. V.{. n+


+vI B |v xnE

The members of the Committee as on 31-03-2011 were as under :


1. Shri J.P. Dua

2. i Ei J

E u xi xnE

2. Smt. Sukriti Likhi

3. {. . Mbd

+EE M E xnE

3. Shri P.V. Gudireddy

4. n E E{

vE xn E

4. Shri Deveshwar Kumar


Kapila

i E +vIi V.{. n+, +vI B |v xnE u E


Vi *
4.7.3 vJvc xMx i E E
vJvc E z {+ +li vJvc E {i Mx, xE
+ |ix BV E {] Ex, il vJvc E +V nx
E r E< Ex x E nJi B +xx {
BE Ec {B + +vE E E vJvc E E x]M
+ =x { +xi E< Ex i i E M` x E M*

16-04-2010
18-05-2010
22-07-2010
24-09-2010
16-11-2010
18-02-2011
28-03-2011

b E vJvc
xMx i E
xnE E .
3
3
5
5
5
4
4

Shareholders Director.

The Committee is chaired by Shri J. P. Dua, Chairman &


Managing Director.
4.7.3 Function of the Fraud Monitoring Committee
The Fraud Monitoring Committee has been constituted
exclusively for monitoring, reviewing and following up cases
of frauds involving amount of Rs. One Crore and above,
keeping in view the delay caused in various aspects of fraud
like detecting, reporting to regulatory and enforcement
agencies and action against perpetrators of the fraud.

4.7.4 `E E h
01.04.2010 31.03.2011 E n x vJvc xMx i E
7 ` E xxx +Vi E M< rslfUt rJJhK rlltkrfU; *
`E E il

Chairman & Managing


Director
Government Nominee
Director
Part Time Non Official
Director

4.7.4 Details of the Meeting


The Fraud Monitoring Committee held 7 meetings during the
period 01.04.2010 to 31.03.2011 as detailed below

={li xnE
E .

Date of meeting

16-04-2010
18-05-2010
22-07-2010
24-09-2010
16-11-2010
18-02-2011
28-03-2011

3
3
4
4
4
3
4

65

No. of Directors on No. of Directors


the Fraud Monitoring
attended
Committee of Board
3
3
5
5
5
4
4

3
3
4
4
4
3
4

4.8 OE i
4.8.1 xnE b x 9 i 2004 E +Vi ` E
i V E E Mx E nxE 14 +Mi,2004 E {j E
+x{x OE i E M` x E, + Rmu -
{ {xM`i E M * i E M`x < =q E M
iE ii +v { OE E Mhk v V E*

4.8 Customer Service Committee

4.8.2 OE i E P]x

4.8.2 Composition of Customer Service Committee:

31.03.2011 E OE i xxJi xnE l*

The Customer Service Committee comprises the following


Directors as on 31-03-2011.

1. V.{. n+

+vI B |v xnE

1. Shri J. P. Dua

Chairman & Managing


Director

2.
3.
4.
5.

E{E xnE
E{E xnE
EM xnE
vE xnE

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Shri Gour Das

Workmen EmployeeDirector

5. Shri Sudip Chaudhuri

Shareholders Director

b. E
B.+. xE
M n
n{ Sv

4.8.1 In compliance with RBI letter dated August 14, 2004, the
Board of Directors at its meeting held on September 9, 2004
constituted Customer Service Committee and reconstituted
the same from time to time. The committee has been
constituted with a view to bring out improvements in the quality
of customer service in the Bank on a continuous basis.

i E +vIi V.{. n+, +vI B |v xnE u E


M<*
4.8.3 OE i E E:
|E E OE E i] i v Ex +
OE E Mhk E gx i xx ={ Ex*

The Committee is chaired by Shri J.P. Dua, Chairman &


Managing Director.

4.8.4 ` E E h
01.04.2010 31.03.2011 E n x i E 4 `E xxJi
il E +Vi E M< rslfUt rJJhK rlltkrfU; nuui-

4.8.4 Details of the Meeting

`E E il

Date of meeting

OE i E
xnE E .

4.8.3 Function of the Customer Service Committee


To innovate measures for enhancing the quality of customer
service and improve the level of customer satisfaction to all
categories of clientele at all times.

This Committee held 4 meetings during the period 01.04.2010


to 31.03.2011 as detailed below

={li xnE
E .

10-06-2010
10-08-2010

6
7

6
7

01-12-2010

17-02-2011

No. of Directors on No. of Directors


Customer Service
attended
Committee

10-06-2010

10-08-2010

01-12-2010

17-02-2011

4.9 {v i

4.9 Remuneration Committee

i E, k j, +lE E M, EM |M E
nxE 9 S 2007 E +vSx B. . 20/1/2005-++<
E +x VxE Ij E E E {hEE xnE E x{nx
r |ix E {j M i E I + MhiE {]
v + h + {U E nx z +x{x {]
vi SE { +vi Ex{nx Ex ]C i
i jiE {] E b u |{i E M * Ex{nx
E Ex b E ={ i- {v i u E VBM
V E u xi xnE, E u xi xnE
il n +x xnE M*

In terms of Govt. of India, Ministry of Finance, Department of


Economic Affairs (Banking Division) notification F.No. 20/1/
2005-BOI dated 9th March, 2007, whole time directors of the
Public Sector Banks will be entitled for Performance linked
incentives, subject to achievement of Broad quantitative
parameters fixed for performance evaluation matrix, based on
the Statement Of Intent on goals and qualitative parameters
and bench marks based on various compliance reports during
the last year. Sub Committee of the Board called
Remuneration Committee consisting of Govt. Nominee
Director, RBI Nominee Director and two other Directors would
do the evaluation of performance.

4.9.1 xnE b x 23.03.2007 E +{x ` E Ex{nx


Vc |ix E |Vx i {hEE xnE E Ex{nx
E Ex Ex E =q {v i E M`x E*
i E - { {xM`x E M *

4.9.1 The Board of Directors in its meeting dated 23-03-2007


constituted the Remuneration Committee to evaluate the
performance of the whole time directors for the purpose of
performance linked incentives. The Committee has since been
reconstituted from time to time.

66

4.9.2. {v i E M`x lli


31.03.2011 E lli i E P]x xxx l :
1. i Ei J
2. B.
3. {. . Mbd

4.9.2 Composition of Remuneration Committee


The Composition of the Committee as on 31-03-2011 was as
under:

E u xi xnE
E u xi xnE
+EE M E
xnE
vE xnE

4. n E E{

1. Smt. Sukriti Likhi


2. Shri S.Ramaswamy
3. Shri P.V. Gudireddy
4. Shri Deveshwar
Kumar Kapila

i E +vIi i Ei J, E u xi xnE
u E M<*
4.9.3. {v mrbr; E fUtgo
Ex{nx kr |ix E |Vxl vqKofUtrtfU rl=uNfUt
fuU fUtgorlvt=l E bqgtkfUl fUhlt>
4.9.4. ciXfU fUt rJJhK
01.04.2010 mu 31.03.2011 ;fU mrbr; fUe 1 ciXfU nwRko`E E il

Shareholders Director.

The Committee is chaired by Smt. Sukriti Likhi, Government


Nominee Director.
4.9.3 Function of Remuneration Committee
To evaluate the performance of the whole time directors for
the purpose of performance linked incentives.
4.9.4 Details of the Meeting
The Committee held one meeting during the period 01.04.2010
to 31.03.2011

ctuzo fUe vrhtr" i E ={li xnE


xnE E .
E .

16-07-2010

Govt. Nominee Director


RBI Nominee Director
Part Time Non Official
Director

Date of meeting

No. of Directors on No. of Directors


the Remuneration
attended
Committee of Board

16-07-2010

4.10 xEx i
4.10.1 i V E E nxE 1 x 2007 E {jE
b+b . .. 47/29.32.001/2007-08 E +x
21.04.2008 E b E xEx i E M`x E M*

4.10 Nomination Committee


4.10.1 In terms of Reserve Bank of India letter DBOD No. BC.
No. 47/29.39.001/2007-08 dated Nov. 1, 2007, the Nomination
Committee of the Board was constituted on 21-04-2008 and
reconstituted from time to time.

4.10.2 xEx i E M`x

4.10.2 Composition of Nomination Committee

31.03.2011 E lli i E M`x xxx l :

The Composition of the Committee as on 31-03-2011 were as


under :

1. i Ei J
2. V B. Sin

1. Smt. Sukriti Likhi


2. Shri Rajesh M. Chaturvedi

E u xi xnE
xn JE xnE

Govt. Nominee Director


Chartered Accountant
Director
3. Dr. Shakeel Uz-Zaman
Part Time Non Official
Ansari
Director
4. Shri P.V. Gudireddy
Part Time Non Official
Director
The Committee is chaired by Smt. Sukriti Likhi, Government
Nominee Director

3. b. E-=W-Wx + +EE M E xnE


4. {. . Mbd

+EE M E xnE

i E +vIi i Ei J, E u xi xnE
u E M<*
4.10.3 xEx i E E
xEx i E +vx E v 9(3)(i) E +iMi Vn
xSi xnE/xnE E { xSi x H E
M B =Si i E Si iEi E l xvh Ex E
|G { Ex i *
4.10.4 ` E E h
01.04.2010 31.03.2011 E n x i E BE `E +Vi
E M<*
`E E il
28-05-2010

4.10.3 Function of Nomination Committee


The Nomination Committee have to undertake a process of
due diligence to determine the Fit & Proper status of existing
elected directors/the person to be elected as a director under
Sec. 9 (3) (i) of the Act.
4.10.4 Details of the Meeting
The Committee held one meeting during the period 01.04.2010
to 31.03.2011
Date of meeting

b E xEx
={li xnE
i E xnE E .
E .
4

28-05-2010

67

No. of Directors on No. of Directors


the Nomination
attended
Committee of Board
4

4.11 +ih i
4.11.1 E x +ih i E M`x E VE |Vx
<C] E +ih/]x, b{E] V Ex
Ei < E iE i x * i E { {xM` x E M *
4.11.2 +ih i E P]x
31.03.2011 E lli i E M` x xxx l :
1. V.{. n+

+vI B |v xnE

2. b. E
3. B.+. xE

E{E xnE
E{E xnE

4.11 Share Transfer Committee


4.11.1 The Bank has constituted Share Transfer Committee
for the purpose including but not limited to transfer/transmission
of equity shares, issue of duplicate shares. The Committee
has since been reconstituted from time to time.
4.11.2 Composition of Share Transfer Committee
The Composition of the Committee as on 31-03-2011 were as
under :

4. M n
EM xnE
5. n{ Sv
vE xnE
i E +vIi V.{. n+, +vI B |v xnE u E
M<*
4.11.3 +ih i E E

1. Shri J. P. Dua

Chairman & Managing


Director

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Shri Gour Das

Workmen Employee Director

5. Shri Sudip Chaudhuri

Shareholders Director

The Committee is chaired by Shri J. P. Dua, Chairman &


Managing Director
4.11.3 Function of Share Transfer Committee

i E E E E +ih, |h, +Ei, bVx,


Ex E +xnx + M B +l x] B |h {j E
n +{Ii +{SEiB { Ex E {Si b{E]
|h{j V Ex E +vE + <E B |vEi *
i E E Ex E +vE V E +ih,
|h, b{E] |h{j V Ex +n i +E +
|ME i *
4.11.4 `E E h:01.04.2010 31.03.2011 E nx i u +Vi
` E E h xxx :

The Committee is empowered and authorized to approve


transfer, transmission, rejection, subdivision, consolidation of
shares of the Bank and issue of duplicate share certificates
against lost, misplaced, stolen or destroyed share certificates
after observing requisite formalities. The Committee is also
empowered to do all such acts, things or deeds as may be
necessary or incidental to the exercise of transfer, transmission,
issue of duplicate share certificates etc.
4.11.4 Details of the Meeting
The details of the meetings held by the committee during the
period 01.04.2010 to 31.03.2011 were as under:-

`E E il

b E +ih i E xnE E J

={li xnE E .

Date of meeting

No. of Directors on the Share Transfer


Committee of Board

No. of Directors attended

07-04-2010
18-05-2010
26-06-2010
10-07-2010
29-07-2010
10-08-2010
28-08-2010
15-09-2010
30-09-2010
21-10-2010
15-11-2010
01-12-2010
28-12-2010
14-01-2011
27-01-2011
14-02-2011
04-03-2011
23-03-2011

4
4
4
4
4
4
5
5
5
5
5
5
4
5
5
5
5
5

3
4
4
3
3
4
5
4
4
5
4
5
4
5
5
3
5
4

68

4.12 }] G i
4.12.1 E E b x nxE 22.01.2010 E {z +{x ` E
, E i n(Bx+), <, M, Sz< B M]
+ }] E G vi E nJJ E B }]
G i E M`x E V xxEi xnE 1. b. E
2. n E E{

E{E xnE
vE xnE

3. b. i EVM

vE xnE

4. E.E. bM

+vE xi xnF

4.12 Flat Purchase Committee


4.12.1 The Board of the Bank in its meeting dated 22-012010 constituted Flat Purchase Committee for looking after
the matters related to purchase of residential flats for the Bank
at Delhi(NCR), Mumbai, Bangalore , Chennai & Guwahati,
comprising the following Directors
1. Shri D. Sarkar
2. Shri Deveshwar
Kumar Kapila
3. Dr. Vasant Baburao
Kaujalgi
4 Shri K.K. Dogra

4.12.2 `E E h
nxE 01.04.2010 31.03.2011E +v E nx i E
` E E h xxi `E E iJ

09-04-2010
16-04-2010

}] G i E
xnE E .
2
3

Executive Director
Shareholders Director
Shareholders Director
Officers Nominee Director

4.12.2 Details of the Meeting


The details of the meeting of the Committee held during the
period 01.04.2010 to 31.03.2011 are as under:

={li xnE
E .

Date of Meeting

09-04-2010
16-04-2010

2
3

E E xnE b x nxE 26.06.2010 E {z +{x ` E


={H i E {i Ex E xh + =E lx
{ +<..B. u nB MB Z E +x E E + /
hVE {k E G Ex i x] <]] i
(+<) B Vx <]] i (Vb<+) xE n
i E M`x E M*
4.13 +]x i
4.13.1 E E xnE b x nxE 18.02.2011 E {z
+{x ` E i E (i E ]{i) E +vx +]x
E +v { <C] xMi B +]x Ex i +]x
i E M`x E *
4.13.2 +]x i E P]x :
i E P]x nxE 31.03.2011 E lli xxi :
1. V.{.n+
+vI B |v xnE
2. b. E
E{E xnE
3. B. + xE
E{E xnF
4. n E E{
vE xnE

No. of Directors on
the Flat Purchase
Committee
of Board

No. of Directors
attended

2
3

2
3

The Board of Directors of the Bank in its meeting dated


26-06-2010 decided to discontinue the above committee and
in its place, as suggested by I.B.A. two committees namely
Central Real Estate Committee (CREC) and Zonal Real Estate
Committee (ZERC) were constituted to look after the purchase
of residential/commercial properties of the Bank.
4.13 Share Allotment Committee:
4.13.1 The Board of Directors of the bank in its meeting dated
18-02-2011 constituted Share Allotment Committee for issue
and allotment of Equity Shares to Govt. of India (President of
India) on preferential allotment basis.
4.13.2 Composition of Share Allotment Committee:
The Composition of the Committee as on 31-03-2011 is as under:
1. Shri J. P. Dua

Chairman & Managing Director

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Shri Deveshwar
Kumar Kapila

4.13.3 +]x i E E

Shareholders Director

4.13.3 Function of Share Allotment Committee:

i E B E B E B |vEi E M V
+vx +]x E +v { i E E <C] E
xM B +]x il ] ]E BCSV B < ]E BCSV
= Sr Ex i +E
4.13.4 `E E h
nxE 01.04.2010 31.03.2011E +v E nx i E
` E E h xxi -

The committee was authorized to do all such acts, deeds and


things as may be required in connection with the issue and
allotment of Equity Shares to Govt. of India on preferential
allotment basis and get the same listed with the National Stock
Exchange and Bombay Stock Exchange.
4.13.4 Details of the Meeting
The details of the meeting of the Committee held during the
period 01.04.2010 to 31.03.2011 were:

69

`E E iJ

b E +]x ={li xnE


i E xnE E .
E .

31-03-2011

Date of Meeting

5. Remuneration to the Directors:


The remuneration including traveling and halting expenses to
the Non- Executive Directors is paid as decided by the
Government of India /RBI guidelines.
5.1 The details of salary including incentives paid to the wholetime Directors of the Bank past and present, i.e Chairman &
Managing Director and Executive Director during the year
2010-11 are as under:

|ix

Basic

Dearness
Allowance

Arrear

Incentives

Total

926385.00

364853.75

47489.50

698493.00

2037221.25

Shri D. Sarkar (ED)

797550.00

314112.50

40885.00

204795.00

1357342.50

Shri M. R. Nayak (ED)

797550.00

314112.50

37362.42

122877.00

1271901.92

Shri K. R. Kamath (EX- CMD)

0.00

0.00

0.00

460274.00

460274.00

Shri K. K. Agarwal ( EX-ED)

0.00

0.00

0.00

217260.00

217260.00

2521485.00

993078.75

125736.92

1703699.00

5343999.67

/ Existing Directors

V.{. n+ (+.|.x.)
Shri J.P. Dua ( CMD)

3.

M< k

Vn xnE

2.

Sl
Name
No.

1.

No. of Directors
attended

31-03-2011

5. xnE E {v
M-E{E xnE E j B k i n Vx
{v i V E E { i E u EB
MB xh E +x |nx E V *
5.1 2010-11 E nx E E {hEE xnE +li
+vI B |v xnE B E{E xnE E Mix EB MB
ix E h xxx :

G x

No. of Directors on
the Share Allotment
Committee of Board

b. E (E.x)
B.+. xE (E.x.)

i{ xnE / Ex-Directors
4.
E. +. Ei (.{ +.|.x.)
5.

E. E. +O,
(.{. E{E xnE)
E / TOTAL

ix +{x xnE i E E ]E +{x {x x *

At present the Bank does not have stock option plan for its
directors.

5.2 M-E{E xnE E |iE b ` E ={li x i


.5000/- + b E i E `E ={li x i .
2500/- E Mix E V * il{, E E +vI B |v
xnE, E{E xnE + ++< il E xi xnE,
V E E +vE , E ]M E E M ix x E Vi*
6. Vx b ` E :

5.2 The Non-Executive Directors are being paid sitting fee of


Rs. 5000/- for attending each Board Meetings and Rs.2500/for Committee Meetings. Sitting fees are, however, not paid to
the Chairman and Managing Director, Executive Directors of
the Bank and Government Nominee Directors.

6.1 E E Mi ix E vh `E E h xxx
:

6.1 Particulars of past three Annual General Meetings of the


Bank.

6. General Body Meetings:

70

`E E {

`E E iJ

lx

Nature of Meeting

Date & Time

Venue

|Vx
Purpose

U` E vh
`E

16 Vx 2008
{x 10.30 V

<]x Vx ES x],
1-201, C]-***, ]
E ],
EEi -700 106

31.03.2008 E {i i E E
ix{j, -x J, J u E
E M< +v i E E GE{ E v
xn E b E {] il J B
ix {j { J{IE E {] { SS,
+xnx + +MEh il <C]
{ Pi Ex*

Sixth Annual General


Meeting

Monday, 16 th June,
2008, 10.30 A.M.

Eastern Zonal Cultural


Centre, IB-201, Sector-III,
Salt Lake City,
Kolkata-700 106

To discuss, approve & adopt the Balance


Sheet of the Bank as at 31-03-2008, Profit
& Loss Account of the Bank for the year
ended 31st March, 2008, the Report of the
Board of Directors on the working and
activities of the Bank for the period covered
by the Accounts, the Auditors Report and
to Declare Dividend on Equity shares.

i E vh
`E

15 Vx 2009
{x 10.30 V

<]x Vx ES x],
1-201, C]-***, ]
E ],
EEi -700 106

Seventh
Annual
General Meeting

Monday, 15th June,


2009, 10.30 A.M.

Eastern Zonal Cultural


Centre, IB-201, Sector-III,
Salt Lake City,
Kolkata-700 106

31.03.2009 E {i i E E
ix{j, -x J, J u E
E M< +v i E E GE{ E v
xn E b E {] il J B
ix {j { J{IE E {] { SS,
+xnx + +MEh il <C]
{ Pi Ex, EEk ]E
BCSV . E E <C] E
SUE { +Sr Ex + +EE
H { BE vE xnE E xSi
Ex E +xnx*

+` E vh
`E

M 10 Vx 2010
{x 10.30 V

<]x Vx ES x],
1-201, C]-***, ]
E ],
EEi -700 106

Eighth Annual
General Meeting

Thursday, the 10th


June, 2010,10.30
A.M.

Eastern Zonal Cultural


Centre, IB-201, Sector-III,
Salt Lake City,
Kolkata-700 106

71

To discuss, approve & adopt the Balance


Sheet of the Bank as at 31-03-2009, Profit
& Loss Account of the Bank for the year
ended 31st March, 2009, the Report of the
Board of Directors on the working and
activities of the Bank for the period covered
by the Accounts, the Auditors Report, to
Declare Dividend on Equity shares, to
approve voluntarily delisting of equity shares
of the Bank from the Calcutta Stock
Exchange Ltd. and to elect one
shareholders director in casual vacancy.

31.03.2010 E lli E E ix
{j, 31 S 2010 E {i i E
E x J, J+ u E E M<
+v i E E G E{ E v
xnE b E {] il J+ B
ix{j { J{IE E {] { SS,
+xnx + +MEh, <C] {
Pi Ex + +EE H {
BE vE xnE E xSi Ex E
+xnx*
To discuss, approve & adopt the Balance
Sheet of the Bank as at 31-03-2010,
Profit & Loss Account of the Bank for the
year ended 31st March, 2010, the Report of the Board of Directors on the working and activities of the Bank for the period covered by the Accounts, the
Auditors Report, to Declare Dividend on
Equity shares, and to elect one shareholders director in casual vacancy.

6.2 E< E{ +` E vh ` E {i x
E M l*
6.3 k 2010-11 E nx {]t ] u E< E{
{i x E M* il{, nxE 23.03.2011E {z E E
vE E +vh x ` E BE E{ {i
E M E E |] +li i E ]{i (i E) E
+vx +]x E +v { . 669,99,99,886 E i .
217 E | { |i 10/- E n { 29515418
E xM B +]x E +xnx Ei B BE E{ {i E
M*
6.4 10.06.2010 E +Vi {U E vh ` E
xxJi xnE ={li l*
V.{. n+
+vI B |v xnE
b. E

E{E xnE

B.+ xE
n i
{. . Mbd

E{E xnE
E u xi xnE
+EE M E xnE

n E E{

vE xnE

6.2 No Special Resolution was passed in the Eighth Annual


General Meetings.
6.3 No Special Resolution was passed by postal ballot during
the financial year 2010-11. However the shareholders of the
Bank in the Extraordinary General Meeting held on 23-03-2011
passed one special resolution approving issue and allotment
of 29515418 equity shares of Rs. 10 each at a premium of
Rs 217 amounting to Rs.669,99,99,886 on preferential
allotment basis to the Promoter of the Bank i.e. President of
India(Govt. of India).
6.4 The following Directors were present in the last Annual
General Meeting held on 10-06-2010
Shri J.P.Dua

Chairman & Managing


Director

Shri D. Sarkar

Executive Director

Shri. M.R. Nayak

Executive Director

Shri Mohammad Tahir

RBI Nominee Director

Shri P. V. Gudireddy

Part Time Non Official


Director

Shri Deveshwar
Kumar Kapila

Shareholders Director.

n{ Sv

vE xnE

Shri Sudip Chaudhuri

Shareholders Director.

E. E. bM
7. |E]Eh

+vE xi xnE

Shri K.K. Dogra

Officers Nominee Director

7. Disclosures:

E x x EM EB Vx E <i +{x
|]/xnE, |vx + =xE v +n E l E< B
i{h xnx x EB Vx Oi: E E i E l
]E E x *

Other than those in the normal course of banking business,


the Bank has not entered into any materially significant
transactions with its Promoter/Directors, Management, their
relatives etc. that may have potential conflict with the interest
of the Bank at large.

E x {V V vi i +{I+ E +x{x E
il +x ]E BCSV +l vE/xE |vEh
u {U ix E { E< +lnb x M M +
x <E +Sx E M< *
E V ExW ={v il E E E
EE E J{I i x x x E M *

The Bank complied with all the requirements regarding capital


market and has not been imposed with any penalty or stricture
by the Stock Exchanges or SEBI or by any Statutory /
Regulatory Authority during the last three years.

E i l|V ]E BESV E l S E E Jb49 E


+x +{I E E x {x E *

The Bank has complied with mandatory requirement of Clause


49 of the Listing Agreement with the Stock Exchanges as
applicable to the Bank.

2010-11 i E{] Mxx { vE Exp J {IE


E |h{j < {] E l Mx *
+vI B |v xnE stu rfU cfU fuU bwg fUtgovttfU yr"fUthe
n, il |vE (k B J) B B+ +li ]E BCSV
E l ]M E E Jb 49V l xvi E E k
E E |J H |h{j |{i E M + b E I
|ii E M V < E {] E l Mx *

A certificate of the Statutory Central Auditors on Corporate


Governance for the year 2010-11 is annexed to this report.

|vx SS + h {] xnE {] E + *

Management discussion and analysis report forms part of the


Directors Report.

A Whistle Blower mechanism exists in the Bank and no


personnel of the Bank has been denied acess to the Audit
Committee.

A Certificate from the Chairman and Managing Director i.e


Chief Executive Officer of the Bank and General Manager
(F& A)& CFO i.e. the person heading the finance function of
the Bank, as stipulated in Clause 49 V of the Listing Agreement
with Stock Exchanges, has been placed before the Board and
is annexed to this Annual Report.

7.1 M-+vniE +{IB


M-+vniE +{I+ E Exx xxx

7.1 Non-Mandatory Requirements


The extent of implementation of non-mandatory requirements
is furnished hereunder

72

+{I

+x{x

REQUIREMENT

COMPLIANCE

E{x b E n E E{x E b E l-l E{x


E {] E VJ |<,xnE E { =kni
+ =x i fM xx E |Ii E

+<B/]/Bx+<B il +x +vEi l+ u +Vi


EB Vx |Ih EG xnE E |Ih i xi
E Vi *

Company may train Board members in the Business model of


the Company as well as risk profile of the business parameters
of the company, the responsibilities as Director and the best
way to discharge them

The Directors are nominated for training programs as and when


organized by IBA/BTC/NIBM and other accredited institutions.

8. |h E v
E |tME + S v E =zx + E V E
x E xi + <E l E x +{x
ivE E =xE v +x SxB |nx Ex E +Ei
E E E * E =x i ]E BCSV E i/
U/E k {h |i Ei V E E Sr
* <x vE +{I E +x BE ] S {j il
BE EEi li Guteg CtMt fuU S {j |Ei E
Vi * 2010-2011 E n x i k {h <xx
BC| (+OV) Vx ]hbb (+OV) bBxB x (+OV)
il +xxn V {jE (M) i +Oh S{j |Ei
rfUY dY :u* {h E E E <] www.allahabadbank.in
{ |ni E M*
E/lMi xE E EB MB |Vx]x E E <]
www.allahabadbank.in { nB MB *
9. vE i vh Sx
9.1 x E vh `E E h

8. Means of Communication:
The Bank appreciates the benefit accruing to the society with
the advent and advancement of technology and means of
communications and further recognized the need of keeping
its stakeholders informed of the events of their interest. The
quarterly/half yearly/ annual financial results of the Bank are
informed to all the Stock Exchanges where the shares of the
Bank are listed. These are published in one national newspaper
and one regional language newspaper based at Kolkata as
per statutory requirement. During the year 2010-11, the
quarterly financial results were published in leading
newspapers namely Financial Express(English), Business
Standard (English), DNA Money (English) and Aanand Bazaar
Patrika (Bengali). The results are also displayed on the web
site of the Bank www.allahabadbank.in.
The presentation made to the analysts/institutional investors
are hosted on the Banks Website www.allahabadbank.in
9. General Shareholders Information:
9.1 Particulars of 9th Annual General Meeting

nx + nxE

G, 10 Vx, 2011

Day & Date

Friday, 10th June,2011

{x 10.30

Time

10.30 A.M.

lx

<]x Vx ES ],
+< -201, C]-***, ] E ], EEi - 700106

Venue

Eastern Zonal Cultural Centre,


IB-201, Sector-III, Salt Lake City, Kolkata-700106

9.2 k Eb + {h E |Ex (+xi)

9.2 Financial Year and Calendar for Publication of Financial


Results (Tentative)

E E k +| S * xxJi iJ E {i
+v i i {h E +xnx
30
30
31
31

Vx, 2011
i 2011
n 2011
S 2012

The Financial Year of the Bank is April to March


Approval of quarterly results for the period ending

V<, 2011 E +i
+H, 2011 E +i
Vx 2012 E +i
J{Ii E J
yit- < 2012

June 30, 2011

End of July,2011

September 30,2011

End of October,2011

December 31, 2011

End of January, 2012

March 31, 2012

Audited Annual AccountsApril- May, 2012

9.3 E CV E iJ ( B BVB)

9.3 Date of Book Closure (Dividend & AGM)

E CV - 16 <, 2011 G 10 Vx, 2011


(nx nx )
9.4 Mix E il: M, 28 Vx, 2011

Book closure- Monday 16th May, 2011 to Friday, 10th June,


2011 (Both days inclusive)
9.4 Dividend Payment Date: Tuesday, 28th June, 2011.

73

9.5 ]M

9.5 Listing

9.5.1 ]E BCSV ]M

9.5.1 Listing on Stock Exchanges

]E BCSV

]E Eb

]M E il
Date of Listing

Stock Exchange

Stock Code

xx ]E BCSV (BxB<)

BBE

National Stock Exchange (NSE)

ALBK

27.11.2002

532480

27.11.2002

< ]E BCSV (B<)


Bombay Stock Exchange (BSE)

k 2011-12 i E Sri E ={H ]E BCSV


E { |i E V SE *
9.5.2 +x{x +vE
B.. ]]S, |vE(k B J) B meYVUytu E
E z |vx, +x vE |vE + ]E BCSV
E l Sri E E +x{x Ex i +x{x +vE E
{ xq] E M *
9.6 V b]/E E x{nx
k 2010-11 E nx xx ]E BCSV (BxB<) +
]E BCSV (B<) x[ubM EB MB E j +
E =SS B xx E]x E h xxi :

/Month

=SS

High
(Rs)

+|
<
Vx
V<
+Mi
i
+H
x
n
Vx

BxB<

The annual listing fee for the financial year 2011-12 has already
been remitted to the above Stock Exchanges.
9.5.2 Compliance Officer
Shri A.B. Bhattacharjee General Manager (F&A)& CFO has
been designated as the Compliance Officer for complying with
various provisions of SEBI, other statutory authorities and
Listing Agreements with Stock Exchanges.
9.6 Market Price Data:
The monthly high and low quotations and the volume of shares
traded on National Stock Exchange (NSE) and Bombay Stock
Exchange (BSE) during the Financial year 2010-11 were as
follows:

/NSE

xx

Low
(Rs)

Qty.
(Nos)

=SS

High
(Rs)

B<
xx

Low
(Rs)

/BSE

Qty.
(Nos)

April 10

177.10

142.45

41255597

177.00

142.00

7984310

May 10

166.80

148.15

25546029

166.40

148.00

3670860

June 10

168.80

156.00

18589429

168.70

156.10

4174825

July 10

196.20

158.25

29713124

195.90

158.40

5310263

Aug 10

220.80

193.00

27579684

220.95

185.95

3049970

Sep 10

238.05

208.25

19627893

236.90

200.00

2796580

Oct 10

261.80

226.25

21341463

261.50

225.00

2912381

Nov 10

271.95

228.28

18890314

270.90

228.05

1697847

Dec 10

253.00

192.50

25068110

255.10

199.00

3470262

Jan 11

232.30

195.65

19068624

232.40

196.50

3980564

Feb 11

217.15

182.85

13903810

225.00

183.00

2610366

Mar 11

183.50

236.30

11746449

240.00

195.00

1600130

74

9.7 B Bb { BxBC x}] E ix E E E 9.7 Performance of Banks share in comparison with the
movement of S & P CNX Nifty is shown hereunder:
Ex{nx xxi :
nxE
BxB< E E E CVM
B Bb { BxBC x}]
Date

Closing Share Price of Bank at NSE (Rs)

S & P CNX Nifty

01-04-2010
03-05-2010
01-06-2010
01-07-2010
02-08-2010
01-09-2010
01-10-2010
01-11-2010
01-12-2010
03-01-2011
01-02-2011
31-03-2011

143.25
159.55
161.05
160.10
197.85
212.70
233.70
255.15
245.10
230.10
199.15
229.75

5290.50
5222.75
4970.20
5251.40
5431.65
5471.85
6143.40
6117.55
5960.90
6157.60
5417.20
5833.75

9.8 V] B ]x BV]
BB . 77/2A W b, EEi 700 029
V] B ]x BVx] *
9.9 +ih |h

9.8 Registrar and Share Transfer Agent:

nxn E +x xEMh BE l E +ih-b]<Vx E v +{x Ei * E iih E n


V] B iih BV] iii E iih E Sx VM*
iii E +Mi E Vi E < b]<Vx
i +{x +xv b{V] {]{] E |ii E* b] i +xv
|{i x { E b]<V E n Vi * n 30 nx
E +n b] i +xv |{i x i i ii i |h{j
iii E iE { V n Vi *
9.10 vh E { (31.03.2011 E lli )

As per SEBI guidelines, investors can avail the facility of


simultaneous transfer-cum-dematerialization of shares.
Registrar and Transfer Agent, on transfer of shares, would be
sending the intimation of transfer to the transferee. Transferees
are apprised to submit their request for de-materialization to
their Depository Participant. On receipt of Demat request, the
shares are dematerialized. If the demat request is not received
within a period of 30 days, the transferred share certificate is
dispatched to the transferee in physical form.

M/s MCS Ltd. 77/2A, Hazra Road Kolkata-700029 is our


Registrar and Share Transfer Agent
9.9 Share Transfer System.

9.10 Distribution of shareholding as on 31-03-2011

E J

vE J

E |ii

vE E |ii

Category

No of shares

No of holders

Percentage of Shares

Percent of holders

1 to 500

26958496

149568

5.66

88.58

501 to 1000

10080134

14549

2.12

8.62

1001 to 2000

4307141

3025

0.90

1.79

2001 to 3000

1687965

690

0.35

0.41

3001 to 4000

982342

279

0.21

0.17

4001 to 5000

644777

139

0.14

0.08

5001-10000

1587298

221

0.33

0.13

10001-50000

4133415

182

0.87

0.11

50001-100000
100001 and above

E / TOTAL

3192539

40

0.67

0.02

422641311

157

88.75

0.09

476215418

168850

100.00

100.00

9.11 E b]<Vx
{ i E E +x { b] ={v * E
E <C] E +<B+<Bx Eb INE428A01015.
31.03.2011 E lli E E 429196007 ,
b]<V V <C] E 90.12% *
31.03.2011 E lli vE u b] + VE
J MB E h xxx *

9.11 Dematerialization of shares


The Banks shares are compulsorily traded in demat form. The
ISIN code of Banks Equity Shares is INE428A01015.
As on 31-03-2011, 429196007 shares constituting 90.12% of
the equity shares are in dematerialized form.
Particulars of shares in Demat and Physical form held by the
shareholders as on 31-03-2011 are as under:

75

VE

/PHYSICAL

b] /DEMAT
BxBbB /NSDL
bBB /CDSL
E /TOTAL

vE E J

E J

No of shareholders

No. of shares

% of shareholding

55618

47019411

9.88

83656

175223149

36.79

29576

253972858

53.33

168850

476215418

100.00

31.03.2011E lli i E E E <C] vi


276215418 V E E E |nk {V E 58.00% *

vi E

The total Equity holding of Govt. of India as on 31-03-2011


is 276215418 which constitute 58.00% of the total paid up
capital of the Bank.

9.12 +V E il E< Vb+/Bb+/] +x


Ex] <]] E x *
10. +ih B xE Ei xh
E x . BB . E V] B +ih BV] E {
xH E V xE E Ei E vx, il {i
{ix, E +ih/ |h, +vn {ix +n E v
vE E +xv E nV Ei * xE E v i
=xE Ei |vx E, EEi E E Vi *

9.12 There is no outstanding GDRs /ADRs /Warrants or


any Convertible instruments as on date.
10 Share Transfer and Redressal of Investors Grievance
The Bank has appointed M/s MCS Ltd. as the Registrar and
Share Transfer Agent for recording the shareholders requests,
resolution of investors grievances, amongst other activities
connected with the change of address, transfer/transmission
of shares, change of mandate etc. For the convenience of the
investors, grievance/ complaints from them are also accepted
at the Bank Head Office in Kolkata.

xE +{x +xv/Ei i V] E { +l E
xxLi {i { nV E Ei :

The investors may lodge their requests/complaints either with


the Registrar or with the Bank at the following address:-

allahabadbank.grievance@yahoo.co.in

E{x S
M B xE Ei EI
<n E, |vx E
2, xiV b
EEi-700 001
]: 033-22420878
C: 033-22107424
<: investors.grievance@allahabadbank.in

M/s MCS Ltd. (Unit : Allahabad Bank)

The Company Secretary

77/2A, Hazra Road,

Share Deptt.& Investors Grievance Cell

Kolkata-700029

Allahabad Bank, Head Office

Tel; 033-24541893 / 033-24541892

2, Netaji Subhas Road

Fax : 033-24541961,24747674

Kolkata-700 001

Email: mcscal@cal2.vsnl.net.in OR

Tele: 033-22420878

allahabadbank.grievance@yahoo.co.in

Fax: 033-22107424

BB .
77/2B, V b,
EEi-700029
]: 033-24541893 / 033-24541892
C: 033-24541961, 24747674
<: mcscal@cal2.vsnl.net.in OR

Email: investors.grievance@allahabadbank.in

76

10.1 Number of complaints received, resolved and pending


10.1 |{i, xii B i Ei E J
vE E Ei v BB ., EEi All the complaints from the shareholders are received directly
u |{i E Vi il E u |{i E M< Ei E =H by M/s MCS Ltd. Kolkata and those received by the Bank are
E{x E +Oi E Vi * 2010-11 E nx |{i B forwarded to them. The details of requests/complaints received
xii il nxE 31.03.2011 E i +xv /Ei and resolved during the Financial year 2010-11 and pending
as on 31-03-2011 are as follows:
E h xxi nxE 31.03.2010 E
2010-11 E nx |{i
nxE 31.03.2011 E
xii
lli i
lli i
Pending as on 31-03-2010

Received during 2010-11

Resolved

Pending as on 31-03-2011

x/Nil

1636

1636

x/Nil

Ei /+xv E .
No. of Complaints/requests

b] =Si Ji +n {c E h xxi :

The details of unclaimed shares lying in the Demat Suspense


Account are as under:
i) Shares outstanding/unclaimed
as on 01-04-2010
4461
ii) Shares claimed and transferred to
Beneficiary account during the
year 2010-11
335
iii) Shares outstanding/unclaimed
as on 31-03-2011
4126
The voting rights in respect of the unclaimed/outstanding
shares will remain frozen till the claim by the rightful owner.
On the receipt of valid claim from the rightful owner, the shares
lying in the Demat Suspense account are credited to the
claimant.

nxE 01.04.2010 E lli


E/+n
4461
ii) 2010-11 E nx nEi B l
Ji +ii
335
iii) nxE 31.03.2011 E lli
E / +n
4126
+n / E E v inx Ex E +vE E =xE
u n Ex iE E J VBM *
v n E |{i { b] =Si Ji {c E
nn E Ji V E Vi *
i)

11. vi {ri ( nxE 31.03.2011 E lli)

11. Shareholding Pattern (as on 31.03.2011)

vE E J

vi E J

<C] E

Description

No. of Holders

No. of shares held

% to equity

276215418

58.00

19

60462606

12.70

65

13373604

2.81

11

153140

0.03

157

71706794

15.06

1372

5829446

1.23

794

317465

0.06

Resident Individuals including Employee

166431

48156945

10.11

E /TOTAL

168850

476215418

100.00

i E
Government of India

E{x
Insurance Companies
S+ b/]+<
Mutual Funds/UTI
k lB / E
Financial Institutions/Banks

n lMi xE (n k lB)
Foreign Institutional Investors ( Foreign Financial Institutions)

xMi xE

Bodies Corporate

+x i

Non Resident Indians

ES i x H

77

12. xx <C]xE CM ] (Bx<B)

12. National Electronic Clearing Services ( NECS)

xx <C]xE CM ] (Bx<B) E Mix


E BE x< v V xE E E v =E E Ji
V E V Ei * E +{x vE E =xE E Ji
v V Ex E v E E{ ={v E *
il{ vE E E Ji E E ExpEi EM x
(B) J x SB*

National Electronic Clearing Services (NECS) is a novel


method of payment of Dividend, where the amount to the
investors can directly be credited to his/ her Bank Account.
The Bank is offering the services to the shareholders with an
option to avail the facility for direct credit of the dividend in
their Bank account. However the Bank account of the
shareholders should be in Centralized Banking Solution(CBS)
Branch of the Bank.

<B xb] E {] E l Mx V VE
vh Ex vE u V] B +ih BV]
E V VB * b]<V { Jx vE
<B xb] i +{x b{V] {]{] {E E* vE
E Ex { Bx<B E v |{i Ex E E{
{i E V Ei *

The ECS mandate form is enclosed with the Annual Report,


which may be sent to the Registrar & Share Transfer Agent by
the shareholders, who are holding shares in physical form.
Shareholders holding shares in dematerialized form may
contact their respective Depository Participant for their ECS
mandate. The option to receive dividend through NECS may
be discontinued at any time at the instance of the shareholders.

13. +S i

13. Code of Conduct

E x xnE b + ` |vx EE i |V +S
i i E + < 17.10.2005 E +Vi +{x ` E
b u +MEi E M il E E <] +li
www.allahabadbank.in { ={v *

The Bank has framed the Code of Conduct applicable to the


Board of Directors and Senior Management Personnel and
the same has been adopted by the Board at its meeting held
on 17-10-2005 and the same is available on the Banks
website viz.www.allahabadbank.in

b E n + ` |vx x E +v { i E
+x{x E {] E + +vI B |v xnE E + E
M< < + E Ph < |inx E + *

The Board members and Senior Management Personnel have


affirmed compliance with the code on annual basis and a
declaration to this effect from the Chairman and Managing
director, forms part of this report.

Ph

Declaration

E x b E n + E E ` |vx i +S
i xvi E + < E E <] { b *

The Bank has laid down Code of Conduct for all the Board
members and Senior Management Personnel of the Bank
and the same is posted on the Banks website.

b E n + ` |vx x +S i E +x{x E
EH n *

The Board members and Senior Management Personnel have


affirmed compliance with the Code of Conduct.

xnE b E B B =xE +

For and on behalf of the Board of Directors

nxE : 02-05-2011
lx: EEi

( V.{. n+)
+vI B |v xnE

Date:
Place:

78

02-05-2011
Kolkata

(J. P. Dua)
Chairman & Managing Director

J{IE E |h{j

Auditors Certificate

<n E E vE E B
x ]E BCSV E l E E Sri E E Jb 49
lxvi E +x 31 S, 2011 E {i i <n
E, EEi E E{] Mx E li E +x{x E
VS E *
E{] Mxx E i E +x{x E Vn |vx E *
VS E{] Mx E i E +x{x xSi Ex
i E E u +{x< M< |G + =E Exx iE i
l* x i J{I + x E E k h {
+i H Ex *

To The Shareholders of Allahabad Bank


We have examined the compliance of conditions of Corporate
Governance by Allahabad Bank, Kolkata for the year ended
on 31st March 2011, as stipulated in clause 49 of the Listing
Agreements with the Stock Exchange(s).
The compliance of Conditions of Corporate Governance is the
responsibility of Management. Our examination was limited to
procedures and implementation thereof, adopted by the Bank
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 Bank.

il =k VxE nB MB {]Eh E
+x |hi Ei E E x ={H Sri E
xvi E{] Mx E i E +x{x E +
i V E E nxn E =Px x Ei *

In our opinion and to the best of our information and according


to the explanations given to us, we certify that the Bank has
complied with the conditions of Corporate Governance as
stipulated in the above mentioned Listing Agreements; to the
extent these do not violate RBI guidelines.

Ex E +x{x x i E E i
i +x + x E E Ex{nx |vx E Ei
B |i *

We further state that such compliance is neither an assurance


as to future viability of the Bank nor the efficiency or
effectiveness with which the management has conducted the
affairs of Bank.

Ei . ni E {J Bb E.
xn JE
+<B+< {VEh J 110512W

Ei . {.B. Bb BB]
xn JE
+<B+< {VEh J

For M/S SUDIT K PAREKH & CO.


Chartered Accountants
Firm ICAI Regn. No 110512W

For M/S P.A. & ASSOCIATES


Chartered Accountants
Firm ICAI Regn. No. 313085E

For M/S M.R. NARAIN & CO.


Chartered Accountants
Firm ICAI Regn. No. 002330S

(Exi V)
vtxolh
ni . 39461

(n{ E +O)
vtxolh
ni . 55420

(B.Bx. E]x)
vtxolh
ni . 22993

(Srikant Jilla)
Partner
Membership No. 39461

(Dilip Kumar Agarwalla)


Partner
Membership No. 55420

(M. N. Venkatesan)
Partner
Membership No 22993

Ei . B.P Bb E{x
xn JE
+<B+< {VEh J

Ei . E. B. +O
xn JE
+<B+< {VEh J

Ei . B.. Vx Bb E.
xn JE
+<B+< {VEh J

302184 E
For M/S S. GHOSE & CO
Chartered Accountants
Firm ICAI Regn. No 302184 E

(Snx S]]{v)
vtxolh
ni . 51254
(Chandan Chattopodhay)
Partner
Membership No. 51254

313085E

302184 E
For M/S K. M. AGARWAL & Co
Chartered Accountants
Firm ICAI Regn. No 853 N

Ei . B.+. xh Bb E.
xn JE
+<B+< {VEh J 002330S

For M/S M.C. Jain & Co


Chartered Accountants
Firm ICAI Regn. No 304012E

(. {. )
vtxolh
ni . 073009

(E E. {])
vtxolh
ni . 056623

(C.P. Mishra)
Partner
Membership No.073009

(Mukesh Kr. Patawari)


Partner
Membership No.056623

79

304012E

< n E
ALLAHABAD BANK

31 S, 2011 fUtu g:tr:r; ix-{j


BALANCE SHEET AS ON 31ST MARCH, 2011

+xS

Particulars

lli

31.03.2011

(< V )

lli

31.03.2010

(< V )

Schedule

As on 31.03.2011
(< in thousand)

As on 31.03.2010
(< in thousand)

1
2
3
4

4,762,154
80,311,712
1,318,871,603
69,181,774

4,467,000
63,062,524
1,060,557,540
54,354,751

39,736,366
1,512,863,609

34,550,315
1,216,992,130

79,009,281

71,837,784

31,264,477
432,470,643
936,248,884
11,482,285
22,388,039
1,512,863,609
563,944,857
39,845,979

19,844,466
384,286,239
716,048,718
11,182,746
13,792,177
1,216,992,130
490,807,906
29,443,736

{V + niB
CAPITAL & LIABILITIES
{V / Capital
|Ii B +v /Reserves & Surplus
V / Deposits
=v / Borrowings
+x niB B |vx / Other Liabilities
and Provisions
E / Total
+i / ASSETS

i W E xEn + +i
Cash and Balances with
Reserve Bank of India

E +i + M il +{ Sx { n vx

Balances with Banks and


Money at Call and Short Notice
7
xvx / Investments
8
+O / Advances
9
l +i / Fixed Assets
10
+x +i / Other Assets
11
E /Total
+EE niB / Contingent Liabilities
12
Oh E B / Bills for Collection
i{h J xi / Significant Accounting Policies 17
J { ]{{h / Notes on Accounts
18

Wvh mk=rCo; ylwmqragt tuFu fUt +z ykd ni/

The Schedules referred to above form an integral part of the Accounts.


xnE / Directors:
B / Sh. S Ramaswamy
i Ei J / Smt Sukriti Likhi
+ B Sin /Sh. R M Chaturvedi
b. E =W-Vx +

su. ve. =qyt

+vI B |v xnE
J. P. DUA
Chairman & Managing
Director

Dr. Shakeel-Uz-Zaman Ansari


M n / Sh. Gour Das
=uJuJh fwUbth E{ / Sh. Deveswar Kumar Kapila
b. Jkm; ctcqhtJ EVM / Dr. Vasant Baburao Kaujalgi
n{ Sv / Sh. Sudip Chaudhuri

b. E

B. +. xE

E{E xnE

E{E xnE

(D. SARKAR)
Executive Director

(M. R. NAYAK)
Executive Director

E |vE (k B J)

A. B. Bhattacharjee
General Manager
(Finance & Accounts
and CFO)

(S. L. JAIN)
Assistant General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date


Ei ni E {J Bb E./
For Sudit K Parekh & Co.
xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 110512 W

Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No:313085 E

xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

(n{ E +O)

(Exi V ) (Srikant Jilla)


{]x / Partner
ni ./ Membership No.-39461

lx / Place: EEi / Kolkata


nxE / Date: 2nd May,2011

B. B. Vx

Y. ce. Ctatgo

|vE (k B J B B+)

Ei B P Bb E.

Ei E. B. +O Bb E.

For S. Ghose & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 302184 E

For K. M. Agarwal & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 0853 N

(Sxnx S]]{v) (Chandan Chattopadhay)


{]x / Partner
ni ./ Membership No.-51254

{]x /Partner
ni ./ Membership No.-073009

80

(. {. )
(C. P. Mishra)

For M. R. Narain & Co.

Ei B. . Vx Bb E.
For M. C. Jain & Co.

xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 304012 E
(E E {])
(Mukesh Ku Patawari)
{]x /Partner
ni ./ Membership No.-056623

< n E

ALLAHABAD BANK
31 S, 2011 E {i i YJk x J
Profit and Loss Account for the year ended 31st March, 2011

{i

+xS

Particulars

Schedule

Year Ended 31.03.2011


(< in thousand)

+ / INCOME
+Vi V /Interest earned
13
+x + /Other income
14
E /Total
II /EXPENDITURE
E M V /Interest expended
15
{Sx /Operating expenses
16
|vx + +EE /Provisions & contingencies
E /Total
III x / Net Profit
+Oxi /Balance brought forward
E /Total
IV xVx / APPROPRIATIONS
vE |Ii E +ih / Transfer to Statutory Reserve
V |Ii fUtu +xih /Transfer to Revenue Reserve
|Ii {V-yg E +ih / Transfer to Capital Reserve - Others
Ii fUtu yk;hK
(ytgfUh yr"rlgb, 1961 E v 36 (I)(viii) fuU ylwmth)
+<+B Ii E/mu yk;hK /
Transfer to Special Reserve (in terms of
Sec 36(I)(viii) of I.T. Act 1961)
+<+B Ii E/mu yk;hK / Transfer to / from IRS Reserve
|ii / Proposed Dividend
{ E / Tax on Dividends
ix {j +Ouxi /Balance carried over to Balance Sheet
E / Total
bnJvqKo tuFt ler;gt/Significant Accouning Policies 17
J { ]{{h/Notes on Accounts
18
r; Nugh ysol (.)/Earnigs per share (Rs.)
( E +Ei . 10/- ) /(Face value of share Rs.10/-)
Basic
Diluted

Wvh mk=rCo; ylwmqragt Fu fUt yrCl ykd ni

{i

31.03.2011

(< V )

31.03.2010

(< V )

Year Ended 31.03.2010


(< in thousand)

110,146,917
13,704,127
123,851,044

83,692,002
15,159,023
98,851,025

69,922,242
23,383,021
16,314,730
109,619,993
14,231,051
1,251,984
15,483,035

57,187,209
16,178,316
13,422,229
86,787,754
12,063,271
960,926
13,024,197

3,600,000
4,000,000
NIL

3,050,000
5,500,000
97,821

3,560,000
-61,803
2,857,293
463,524
1,064,021
15,483,035

250,000
NIL
2,456,850
417,542
1,251,984
13,024,197

31.85
31.85

27.01
27.01

The schedules referred to above form an integral part of the accounts


xnE / Directors:
B / Sh. S Ramaswamy
i Ei J / Smt Sukriti Likhi
+ B Sin /Sh. R M Chaturvedi
b. E =W-Vx +

su. ve. =qyt

+vI B |v xnE
J. P. DUA
Chairman & Managing
Director

Dr. Shakeel-Uz-Zaman Ansari


M n / Sh. Gour Das
=uJuJh fwUbth E{ / Sh. Deveswar Kumar Kapila
b. Jkm; ctcqhtJ EVM / Dr. Vasant Baburao Kaujalgi
n{ Sv / Sh. Sudip Chaudhuri

b. E

B. +. xE

E{E xnE

E{E xnE

(D. SARKAR)
Executive Director

(M. R. NAYAK)
Executive Director

E |vE (k B J)

A. B. Bhattacharjee
General Manager
(Finance & Accounts
and CFO)

(S. L. JAIN)
Assistant General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date


Ei ni E {J Bb E./

Ei { B Bb BB]

For Sudit K Parekh & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 110512 W

xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No:313085 E
(n{ E +O)

For P A & Associates

(Exi V ) (Srikant Jilla)


{]x / Partner
ni ./ Membership No.-39461

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

Ei B P Bb E.

Ei E. B. +O Bb E.

For S. Ghose & Co.

For K. M. Agarwal & Co.

xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 302184 E

lx / Place: EEi / Kolkata


nxE / Date: 2nd May,2011

B. B. Vx

Y. ce. Ctatgo

|vE (k B J B B+)

(Sxnx S]]{v) (Chandan Chattopadhay)


{]x / Partner
ni ./ Membership No.-51254

81

Ei B. +. xh Bb E.
For M. R. Narain & Co.

xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No: 002330 S
(B. Bx. E]x) (M N Venkatesan)
{]x / Partner
ni ./ Membership No.-22993
Ei B. . Vx Bb E.
For M. C. Jain & Co.

xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 0853 N
(. {. )

xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 304012 E
(E E {])

(C. P. Mishra)

(Mukesh Ku Patawari)
{]x /Partner
ni ./ Membership No.-056623

{]x /Partner
ni ./ Membership No.-073009

< n E
ALLAHABAD BANK

xEn | h-{j
Cash Flow Statement

h / Particulars

(< nsth )(< in thousand)

2010-11

2009-10

110,146,917

83,692,002

{Sx Miv xEn |


Cash Flow from Opreting Activities

E nx +O, xvx +n |{i V


Interest received during the year from advances,
Investments etc.

+x + / Other Income
P]B /Less:
E nx V { |nk V
Interest paid during the year on Deposit

13,659,647

123,806,564

64,983,235

15,112,202

98,804,204

53,424,137

|vx B +EEi+ i {Sx


Operating Expenses including
Provisions & Contingencies

39,697,750

Vc: / Add:
l +i { /Depreciation on Fixed Assets
E. {Sx Vi xEn
({SxMi +i + ni+ {ix {)
a.

104,680,985

29,600,545

83,024,682

663,897

626,962

19,789,476

16,406,484

Cash Profit generated from operations


(prior to changes in operating assets and liabilities)

J. ni+ r (E) :
b.

Increase (Decrease) in Liabilities

V / Deposit
+x niB B |vx / Other Liabilities & Provisions

258,314,063

210,839,654

4,718,039

3,097,106
263,032,102

213,936,760

M. +i E (r) :
c. Decrease (Increase) in Assets:

+O / Advances
xvx / Investments
+x +i / Other Assets
E. {SxMi Miv x xEn | (E+J+M)

-220,200,166

-128,031,084

-48,184,404

-87,775,742

-8,595,688

A. Net Cash Flow from Operating activities (a+b+c)

-276,980,258

694,617

5,841,320

15,231,035

x Miv xEn |
Cash Flow from Investing Activities

l +i E G/x{]x
Sale/disposal of fixed assets

12,748

7,870

-976,183

-720,060

l +i E G /
Purchase of fixed assets

82

-215,112,209

(< nsth )(< in thousand)

xEn | h-{j (V...) / Cash Flow Statement (Contd.)


h / Particulars
2010-11
J x Miv x xEn |

2009-10

B. Net Cash Flow from Investing Activities

-963,435

k{h Miv xEn |

Cash Flow form Financing activities


=v / Borrowings
=v { =t V / Interest Paid on Borrowings
(E i) / Dividends (including tax)
i E E V / Issue of Shares to Govt of India

] II b fUt rldob YJk curbgt=e }Ut

-712,190

14,827,023
-4,939,008
-2,874,392
6,700,000

4,865,384
-3,763,072
-1,306,542
NIL

11,000,000

NIL

Issue of Tier II Bonds & Perpetual Debt

Mith @h E tuvx / Redemption of Sub Debt


M k{h Miv Vi x xEn
C. Net cash generated from Financing Activities

13,713,623

10,795,770

Total Cash Flow during the year (A+B+C)

18,591,508

25,314,615

E nx E xEn | (fU+F+d)

P E + xEn + xEn i
D. Cash & Cash equivalent at the beginning of the year

i W E E vtm xEn il +i
Cash & Balances with RBI

71,837,784

51,153,786

E +i + bM il +{ Sx { n vx
Balances with Banks and Money at Call and Short Notice

E / Total
R E +i xEn + xEn i

19,844,466

15,213,849

91,682,250

66,367,635

79,009,281

71,837,784

31,264,477

19,844,466

110,273,758

91,682,250

E. Cash and cash equivalent at the end of the year

i W E E vtm xEn + +i
Cash and Balances with RBI

E +i + M il +{ Sx { n vx
Balances with Banks and Money at Call and Short Notice

E / Total
E nx E xEn | (R-P) /
Total Cash Flow during the year (E-D)
xnE / Directors:
B / Sh. S Ramaswamy
i Ei J / Smt Sukriti Likhi
+ B Sin /Sh. R M Chaturvedi
b. E =W-Vx +

18,591,508

su. ve. =qyt

+vI B |v xnE
J. P. DUA
Chairman & Managing
Director

Dr. Shakeel-Uz-Zaman Ansari


M n / Sh. Gour Das
=uJuJh fwUbth E{ / Sh. Deveswar Kumar Kapila
b. Jkm; ctcqhtJ EVM / Dr. Vasant Baburao Kaujalgi
n{ Sv / Sh. Sudip Chaudhuri

b. E

B. +. xE

E{E xnE

E{E xnE

(D. SARKAR)
Executive Director

(M. R. NAYAK)
Executive Director

B. B. Vx

Y. ce. Ctatgo

|vE (k B J B B+)

E |vE (k B J)

A. B. Bhattacharjee
General Manager
(Finance & Accounts
and CFO)

(S. L. JAIN)
Assistant General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date


Ei ni E {J Bb E./
For Sudit K Parekh & Co.
xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 110512 W

Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No:313085 E

xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

n{ E +O

(Exi V ) (Srikant Jilla)


{]x / Partner
ni ./ Membership No.-39461

lx / Place: EEi / Kolkata


nxE / Date: 2nd May,2011

25,314,615

Ei B P Bb E.

Ei E. B. +O Bb E.

For S. Ghose & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 302184 E

For K. M. Agarwal & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 0853 N

(Sxnx S]]{v) (Chandan Chattopadhay)


{]x / Partner
ni ./ Membership No.-51254

83

. {.

ni

(C. P. Mishra)
{]x /Partner
./ Membership No.-073009

For M. R. Narain & Co.

Ei B. . Vx Bb E.
For M. C. Jain & Co.

xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 304012 E
E E {]
(Mukesh Ku Patawari)
{]x /Partner
ni ./ Membership No.-056623

+xS

SCHEDULE

lli

As on
31.03.2011
(< V )
(< in thousand)

+xS 1 - {V

lli

As on
31.03.2010
(< V )
(< in thousand)

SCHEDULE - 1 CAPITAL

|vEi {V /AUTHORISED CAPITAL

30,000,000

30,000,000

2,762,154

2,467,000

2,000,000

2,000,000

4,762,154

4,467,000

i)

16,273,871

13,223,871

ii)

3,600,000

3,050,000

19,873,871

16,273,871

8,686,888

8,733,709

NIL

NIL

NIL

NIL

(44,480)
8,642,408

(46,821)
8,686,888

103,251

103,251

NIL

NIL

|iE 10/- E 3,00,00,00,000 <C]


3,00,00,00,000 equity shares of Rs. 10/- each

xMi, +nk B |nk {V


ISSUED, SUBSCRIBED & PAID UP CAPITAL

fuU mhfUth tht "trh; gufU h. 10/fuU 27,62,1,5,418 <C] ({U 24,67,00,000)
27,62,1,5,418 Equity Shares of Rs.10/- each
held by Central Government

sl;t YJk yg tht "trh; gufU . 10/- fu


20,00,00,000 <C]
20,00,00,000 Equity Shares of Rs.10/- each
held by Public & Others
E /Total :

+xS 2 - |Ii + +v
SCHEDULE - 2 RESERVES & SURPLUS
I.

II.
A)

vE |Ii

/ Statutory Reserves

+l / Opening Balance
E nx {vx / Additions during the year
E / Total :
{V |Ii / Capital Reserves
{xEx |Ii / Revaluation Reserves
i) +l / Opening Balance
ii) E nx {vx/Addition during the year
iii) E nx E]i /Deduction during the year
iv) B x J +ih /
Transfer to Profit & Loss Account
E /Total :

B)

C)

l +i / Reserve out of sale of Fixed Assets


i) +l / Opening Balance
ii) E nx {vx / Addition during the year
iii) E nx E]i / Deduction during the year
E /Total :
+x / Others
i) +l / Opening Balance
ii) B x Ji +ih /
Transfer from Profit & Loss Account
iii) E nx E]i / Deduction during the year

E / Total :

E / Total (A+B+C)
84

NIL

NIL

103,251

103,251

3,409,453

3,311,632

NIL

97,821

3,409,453

3,409,453

12,155,112

12,199,592

lli

As on
31.03.2011
(< V )
(< in thousand)

III.
i)
ii)
iii)
IV.
i)
ii)
iii)

V.

V B +x |Ii / Revenue & Other Reserves


+l / Opening Balance
E nx {vx / Addition during the year
E nx E]i / Deduction during the year
E / Total :
|Ii / Special Reserve
+l / Opening Balance
E nx {vx / Additions during the year
E nx E]i / Deduction during the year
E / Total
n p {ix |Ii /

lli

As on
31.03.2010
(< V )
(< in thousand)

25,032,478

19,532,478

4,000,000

5,500,000

NIL

NIL

29,032,478

25,032,478

1,150,000

900,000

3,560,000

250,000

4,710,000

1,150,000

(126,265)

5,765

NIL
(21,413)

NIL
(132,031)

(147,678)

(126,266)

80,865

80,865

Foreign Currency Translation Reserve


i)
ii)
iii)
VI.
i)
ii)
iii)
VII.
i)
ii)
iii)
VIII.

+l / Opening Balance
E nx {vx /Additon during the year
Deduction/Adj. during the year

E / Total:
+< + B |Ii / I R S RESERVE
+l / Opening Balance
E nx {vx / Additions during the year
E nx E]i/Vx/Deduction during the year
E / Total :
| / Share Premium
+l / Opening Balance
E nx vvx / Additions during the year
E nx E]i / Deduction during the year
E / Total :
B x Ji / Balance in Profit & Loss Account
E / Total :(I+II+III+IV+V+VI+VII+VIII)

85

NIL

NIL

(61,802)

NIL

19,063

80,865

7,200,000

7,200,000

6,404,846

NIL

13,604,846

7,200,000

1,064,021

1,251,984

80,311,712

63,062,524

lli

As on
31.03.2011
(< V )
(< in thousand)

lli

As on
31.03.2010
(< V )
(< in thousand)

+xS 3 - xI{
SCHEDULE - 3 DEPOSITS

i)

M xI{ / Demand Deposits


E / From Banks
+x / From Others
E / Total :
Si E xI{ / Savings Bank Deposits
n xI{ / Term Deposits
i) E k / From Banks
ii) +x / From Others
E /Total :
E /Total :(I+II+III)
i li J+ E xI{ /

ii)

i E li J+ E xI{ /

I.
i)
ii)

II.
III.

Deposits of branches in India


Deposits of branches outside India

E /Total :

479,031

571,433

91,081,202

82,584,031

91,560,233

83,155,464

350,004,265

282,711,836

8,128,535

9,129,294

869,178,570

685,560,946

877,307,105

694,690,240

1,318,871,603

1,060,557,540

1,315,059,908

1,057,736,587

3,811,695

2,820,953

1,318,871,603

1,060,557,540

2,500,000

NIL

+xS 4 - =v
SCHEDULE - 4 BORROWINGS
I.
i)
ii)
iii)
IV)
V)

i =v / Borrowings in India
i W E / Reserve Bank of India
+x E / Other Banks
+x lB B +Eh / Other Institutions and Agencies
Mh xx n @h Ji / Subordinated Innovative

3,121,641

NIL

1,315,113

128,437

Perpetual Debt Instrument.

3,000,000

3,000,000

10,000,000

10,000,000

26,119,000

27,119,000

46,055,754

40,247,437

23,126,020

14,107,314

69,181,774

54,354,751

NIL

NIL

Mh @h-+{ ] II {V

Subordinated Debt - Upper Tier II Capital

Mh @h-] II {V /Subordinated Debt - Tier II Capital


E /Total :
II.
i E =v / Borrowings outside India
E /Total : (I+II)
={H I + II i |ii =v
VI)

Secured borrowings included in I & II above

86

lli

As on
31.03.2011
(< V )
(< in thousand)

lli

As on
31.03.2010
(< V )
(< in thousand)

+xS 5 - +x niB B |vx


SCHEDULE - 5 OTHER LIABILITIES AND PROVISIONS
I. n

/ Bills Payable
II. +i E Vx (x) / inter Office Adjustment (Net)
III. ={Si V / Interest Accrued
IV. +lMi E niB /Deferred Tax Liabilities
V. +x (|vx i) / Others (including provisions)
E / Total :

3,871,215

3,942,742

2,426,895

1,853,914

5,459,648

4,107,615

758,635

239,214

27,219,973

24,406,829

39,736,366

34,550,314

+xS 6 - i W E xEn + +i
SCHEDULE - 6 CASH AND BALANCES WITH RESERVE BANK OF INDIA
I. Ec

/ Cash in hand
(n E x] i)(including foreign currency notes)
II. i W E +i /

3,567,098

3,798,799

75,442,183

68,038,984

NIL

NIL

79,009,281

71,837,783

Balances with Reserve Bank of India

- S Ji / - in Current Account
- +x Ji / - in Other Accounts
E / Total :

+xS 7 - E +i + M il +{ Sx { n vx
SCHEDULE - 7 BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
I. i / In India
i.

E +i / Balances with Banks


S Ji / in Current Accounts
b) +x V Ji / in Other Deposit Accounts
ii. M il +{ Sx { n vx /

a)

2,491,628

3,392,147

1,849,666

2,949,650

9,422,961

NIL

2,400,000

NIL

16,164,255

6,341,797

8,232,612

4,298,178

NIL

NIL

6,867,610

9,204,491

NIL

NIL

15,100,222

13,502,669

31,264,477

19,844,466

Money at Call and Short Notice


a) E

II.
i.

ii.

/ with Banks
b) +x l+ / with Other Institutions
E / Total : ( i + ii )
i E / Outside India
E +i / Balances with Banks
a) S Ji / in Current Accounts
b) +x V Ji / in Other Deposit Accounts
M il +{ Sx { =ug vx /
Money at Call and Short Notice
a) E

/ With Banks
b) +x l+ / With Other Institutions
E / Total : ( i + ii )
E / Total :(I+II)
87

lli

As on
31.03.2011
(< V )
(< in thousand)

lli

As on
31.03.2010
(< V )
(< in thousand)

+xS 8 - xvx
SCHEDULE - 8 INVESTMENTS
I. i xvx / Investments in India in
i.
E |ii /Government Securities
ii.
+x +xni |ii / Other Approved Securities
iii.
/ Shares
iv.
bS + v {j / Debentures & Bonds
+xM il/+l H ={G xvx
v.
Investments in Subsidiaries and / or
Joint Ventures
vi.
+x (S+ b, ]+< +n) /
Others ( Mutual Funds, UTI etc. )

E / Total :
xvx / Gross Investments
P]B +I i |vx / Less: Provision for Depreciation
x xvx /Net Investments
III. i E xvx / Investments Outside India
E / Total (I+III) :
II. E

+xS 9 - +O

SCHEDULE - 9 ADVANCES
E/A i. G E MB B xB MB /
Bills purchased and discounted
ii. xEn @h, +b}] + M {
Cash credits, Overdrafts and
loans repayable on demand
iii. n @h /Term Loans
E / Total :
J/B i. i +i u |ii

|in @h

351,035,281
1,188,444
4,400,236
23,633,139

309,829,425
1,382,736
4,690,410
16,242,940

1,172,204

1,172,204

51,041,339

50,968,524

432,470,643
435,448,420
2,977,777
432,470,643
NIL
432,470,643

384,286,239
386,804,276
2,518,037
384,286,239
NIL
384,286,239

40,543,460

21,841,484

405,139,660
490,565,764
936,248,884

298,053,178
396,154,056
716,048,718

776,889,624

575,987,521

34,514,447
124,844,813
936,248,884

17,057,949
123,003,248
716,048,718

307,637,300
147,866,409
NIL
451,715,340
907,219,049

242,793,500
91,478,586
NIL
373,320,079
707,592,165

19,791,067

3,736,156

699,816
7,498,680

680,390
3,342,096

1,040,272
29,029,835
936,248,884

697,911
8,456,553
716,048,718

( @h { +O i)

Secured by tangible assets


(includes advances against book debts)
ii.

E/E |ii u Ii

Covered by Bank/Government Guarantees


iii. +|ii / Unsecured
E /Total :
M/C I. i +O / Advances in India
i. |lEi Ij / Priority Sector
ii. VxE Ij / Public Sector
iii. E / Banks
iv. +x /Others
E / Total :
II. i +O / Advances outside India
a) cikfU mu =ug / Due from Bank
b) yg mu =ug / Due from others
i) G EB MB B xB MB /
Bills Purchased & Discounted
ii) E @h / Syndicated Loan
iii)

yg

/ Others

E / Total :
E / Total : :(CI+CII)
88

lli

As on
31.03.2011
(< V )
(< in thousand)

lli

As on
31.03.2010
(< V )
(< in thousand)

+xS 10 - l +i
SCHEDULE - 10 FIXED ASSETS
I.

{ ({xEi { i)

Premises (including Revalued Premises)


i.

vqJoJ;eo JMo fuU 31 S E li fuU ylwmth Mi/


{xEi {
At cost / Revalued amount as on 31st March

9,983,214

9,968,693

NIL

NIL

of the preceding year


ii.
iii.
iv.

E nx {xEi / Revalued during the year


E nx {vx / Additions during the year

NIL
9,983,214

279,866

255,242

9,711,495

9,727,972

439,280

394,800

9,272,215

9,333,172

6,505,701

5,808,033

{xx il E
Depreciation to date on revaluation

II.

NIL
9,991,361

E il E
Depreciation to date on book value

vi.

14,521
9,983,214

E nx E]i / Vx /
Deductions/ Adjustment during the year

v.

8,147
9,991,361

E / Total
+x l +i (xS + CS i)
Other Fixed Assets (including Furniture & Fixtures)

i.

vqJoJ;eo JMo fuU 31 btao fUe r:r; fuU ylwmth ttd; vh


At cost as on 31st March of the preceding year

ii.
iii.
iv.
v.

E nx {vx / Additions during the year


E nx E]i / Deductions during the year
Mi vi Vx / Adjustment Related to previous year
il E / Depreciation to date
E /Total:
E / Total :(I+II)

89

968,036

705,538

7,473,737

6,513,571

11,717

7,870

7,462,020

6,505,701

(1,030)

NIL

7,460,990

6,505,701

5,250,920

4,656,127

2,210,070

1,849,574

11,482,285

11,182,746

lli

As on
31.03.2011
(< V )
(< in thousand)

lli

As on
31.03.2010
(< V )
(< in thousand)

+xS 11 - +x +i
SCHEDULE - 11 OTHER ASSETS
i.

+i E Vx (x) /
Inter Office Adjustment (Net)

ii.
iii.

NIL

NIL

7,064,690

4,923,149

3,792,894

2,361,894

97,089

82,787

NIL

323

Others (Sundries and Suspense)

11,433,366

6,424,024

22,388,039

13,792,177

26,550,516

9,372,748

1,600

1,600

399,085,554

370,658,925

(i)

40,947,122

44,293,428

(ii)

4,205,493

4,466,326

92,736,153

61,628,228

418,419

386,651

563,944,857

490,807,906

={S; gV / Interest Accrued


+O { nk E/i { E] M E (x)
Tax paid in advance/tax
deducted at source (net)

iv.
v.

Jx O B ]{ / Stationery and Stamps


n E i] |{i E M< M-EE +i
Non-banking assets acquired
in satisfaction of claims

vi.

yg (rJrJ" nxn YJk Wak;) /


/ Total :

+xS 12 - +EE niB


SCHEDULE - 12 CONTINGENT LIABILITIES
I.

E E r n Vx @h E { E x E M
(+{vx ni +E M i)
Claims against the bank, not acknowledged
as debts (including disputed Income
Tax demands under appeals)

II.

+i: nk x E B ni
Liability for partly paid investments

III.

E n x n+ E Eh ni
Liability on account of outstanding
forward exchange contracts

IV.

P]E E + n M< |ii


Guarantees given on behalf of constituents

V.

i / - In India
i E /-Outside India
|iOh, {`Ex + +x viB
Acceptances, endorsements and other obligations

VI

+x n VxE B E +EE { Vn
Other items for which the Bank is contingently liable

/ Total :

90

{i / Year Ended
31.03.2011
(< V )
(< in thousand)

{i / Year Ended
31.03.2010

(< V )

(< in thousand)

+xS 13 - +Vi V
SCHEDULE 13 - INTEREST EARNED
I)
II)
III)

+O/ { V/]] / Interest/discount on advances / bills


x { + / Income on investments
i W E +i + +x +i E
xv { V

82,741,766

63,984,654

26,702,663

19,447,617

546,852

251,737

155,636

7,993

110,146,917

83,692,001

7,837,422

6,489,377

1,614,772

7,633,362

-12,382

-1,867,904

-50

-5,607

730,215

484,825

101,897

135,073

Interest on balances with Reserve Bank of


India and other inter-bank funds
IV)

+x / Others
E / Total

+xS 14 - +x +
SCHEDULE 14 - OTHER INCOME
I)
II)
iii)

Ex, x + n /Commission, exchange & brokerage


x E G |{i (x)/ Profit on sale of investments(net)
x E {xx { (x) /
Profit on Revaluation of Investment (net)

Iv)

, x il +x +i E G {
Profit on Sale of Land, Building and Other Assets (net)

V)
V)

x xnx { (x) / Profit on exchange transactions (net)


i +xM /E{x il / +l H ={G <in
<in E { +Vi +
Income earned by way of dividends etc. from Subsidiaries/
companies and / or joint ventures etc. in India.

VI)

v + / Miscellaneous Income
E / Total

3,432,253

2,289,897

13,704,127

15,159,023

64,983,234

53,424,137

482,128

397,333

4,456,880

3,365,739

69,922,242

57,187,209

+xS 15 - E M V
SCHEDULE 15 - INTEREST EXPENDED
I)
II)

V { V / Interest on deposits
i W E/+i-E =v { V
Interest on RBI/Inter bank borrowings

III)

+x / Others
E / Total

91

{i / Year Ended

{i / Year Ended

31.03.2011
(< V )
(< in thousand)

(< V )

(< in thousand)

15,576,240

10,113,792

2,018,006

1,765,438

220,040

207,640

358,247

216,379

663,897

626,962

11,975

9,838

179,098

161,429

135,818

69,022

244,822

236,265

412,818

243,667

999,084

789,081

2,562,976

1,738,803

23,383,021

16,178,316

31.03.2010

+xS 16 - {Sx
SCHEDULE 16 - OPERATING EXPENSES
I)

ES E Mix il =xE B |vx


Payments to and provisions for employees

II)
III)
IV)
V)
VI)

c, E B x / Rent, Taxes and Lighting


ph + Jx O / Printing and stationery
Y{x + |S / Advertisement and publicity
E E {k { +I /Depreciation on Banks property
xnE E , k + /
Directors fees, allowances and expenses

VII)

J {IE E +
(J J {IE i)
Auditors fees and expenses
(including branch auditors)

VIII)
IX)
X)
XI)
XII)

v | /Law charges
bE, i, ]x +n / Postages,Telegrams,Telephones etc
i + +xIh / Repairs and maintenance
/ Insurance
+x /Other expenditure
E / Total

92

+xS - 17 i{h J xi
1. J E +v :
(i) k ht fUtu, V +xl =Ji x , J E
{{Mi Mi {{] B ={Si +v { il vE
|vx B xi: E J ri E +x{
x M *
(ii) k h i V E (..E) u + +Yx,
+i MEh, |vxEh il +x vi {
- { V EB MB Mn xn E +x{ * i
xn JE lx u V J xE B =nPh il i
E EM =tM |Si J {ri*
2. n p v xnx :
2.1 i E J+/E i :

Schedule 17 - SIGNIFICANT ACCOUNTING POLICIES

n J+ E xx-<]O x +{x E { MEi


E M il =xE k h E xxx |ni E
M :
pE B M-pE +i B niB il +EE niB x
BCSV b BBx + <b (b<) u |iE i E
{i { n Vx +i {] n {*
V n b< u vi i E {i { +vSi i
+i +i n { {ii E Vi *
{h x +i E BE +M Ji n p ]x
W J Vi *
n li |ixv E E {Sx E <]O x +{x
E { MEi E M il =xE k h E Mhx
xxx E Vi :
pE +i B niB, M], Ei, {Ex il +x
|iriB b< E nxnx |iE i E +i |Si
{] x n { i { +E Vi *

(i) Foreign Branches are classified as Non-integral Foreign


Operations and their financial statements are translated as
follows:

i)

(E)
(J)
(M)
(ii)

(E)

1.

Basis of Accounting:

(i) The financial statements have been prepared under the


historical cost convention and accrual basis of accounting,
unless otherwise stated and are in conformity with the statutory
provisions and generally accepted accounting principles.
(ii) The financial statements also conform to the guidelines
issued by the Reserve Bank of India (RBI) from time to time in
respect of income recognition, asset classification, provisioning
and other related matters. Accounting Standard and
pronouncements issued by the Institute of Chartered
Accountants of India and accounting practices prevalent in
the banking industry in India.
2.

Transactions involving Foreign Exchange:

2.1 Branches / Offices outside India

a) Both monetary and non-monetary Assets and Liabilities


as well as Contingent Liabilities at the closing spot rates notified
by the Foreign Exchange Dealers Association of India (FEDAI)
at the end of each quarter.
b) Revenue items are translated at the quarterly average
closing rate notified by FEDAI at the end of respective quarter.
c) All resulting exchange difference is accumulated in a
separate account Foreign Currency Translation Reserve.
(ii) Operations of representative offices abroad are classified
as Integral Foreign Operations and their financial statements
are accounted for as follows:
a) All monetary Assets and Liabilities, Guarantees,
Acceptances, Endorsements and other obligations are
translated to Indian rupee equivalent at the spot exchange
rates prevailing at the end of each quarter as per FEDAI
guidelines.
b) Non-monetary items are translated at exchange rate
prevailing on the date of transaction.

(J) M-pE n xnx E il { |Si x n { +E Vi


*
(M) V n E Mhx xnx E il { |Si x n { E
Vi *
(P) {h x +i E -x Ji M *

c) Revenue items are accounted for at the exchange rates


prevailing on the date of transaction.
d) All resulting exchange differences are accounted for in
Profit & Loss Account.

+O E i E |Si h E +iMi MEi E


VBM* +O E v |vx lx v +{I+ +l
..E E xE ,V +vE , E +x E Vi *
2.2 i J+ i
(i) n p +i +l niB (BBx+ Vx,
<<B Vx, +B Vx <in E +iMi O E M< V
i) + E n x n+ E E +i i n
p { P (b<) u lSi n { {ii E VBM*

(iii) Advances are classified under categories in line with those


of Indian Offices. Provisions in respect of advances are made
as per the local law requirements or as per the norms of RBI,
whichever is higher.

b< E nxnx n x E E {xx Vxi /


x il x] Ji E V E +iMi n Vi *

The resultant profit/loss on revaluation of forward exchange


contracts and NOSTRO accounts is taken to revenue as per
FEDAI guidelines.

(iii)

2.2 Branches in India


(i) Foreign currency balances whether of assets or liabilities
[including deposits mobilized under FCNR Scheme, EEFC
Scheme, RFC Scheme etc.] and outstanding forward exchange
contracts are converted at quarter end rates as advised by
Foreign Exchange Dealers Association of India (FEDAI).

93

(ii)

(iii)

n p vi + il n E xnx E nx M
x M n { {ii E Vi *

(ii) Income and Expenditure items relating to foreign currency


are converted using the exchange rate prevailing as on the
date of transaction.

M] i Ei, {`Ex + +x ni E E
+i b< u Si |Si V n { +E Vi *

(iii) Acceptances, endorsements and other obligations


including guarantees are stated at FEDAI advised rates
prevailing at the end of each quarter.

3. x :
(i) E E x E i V E E nxn E +x ix
|M l {{Ci iE vi, { i vi, G i
={v il MEi E Vi *
(ii) x E |E]Eh E xxJi U + MEi E
Vi :
(E) E |ii,
(J) +x +xni |ii,
(M) ,
(P) bS B b,
(R) +xM l+/H =t il
(S) +x
(iii) (E) x V E {{Ci iE vi Ex Si , E {{Ci
iE vi E { MEi E Vi *
(J) x V G E il 90 nx i { {xG i
vi E Vi , E { i vi E { MEi E Vi *

3.

(M) x V =Ci nx h MEi x , E G i ={v E


{ MEi E Vi *
(P) x E G E = {{Ci iE vi, i vi
+l G E B ={v E { MEi E Vi B h
ii{Si }]M xE nxn E +x{ E Vi *

c) Investments, which are not classified in the above two


categories, are classified as Available for sale.

(R) +xME, Ci =t il M x E {{Ci i


vi E { MEi E Vi *
(iv) {{Ci iE vi (Ij Oh E <i) E { MEi
x |{i Mi { B Vi * n |{i Mi +Ei +vE
i +iH E {{Ci E +v i {vi E Vi
+ <E B xxx |vx E Vi :

e) Investments in subsidiaries, joint ventures and associates


are classified as Held to Maturity.

(E) +O E B |V i V E E +i MEh B
|vx E E{h xnb E M Ei B +O { E bS/
b E +I*

a) Depreciation in the value of debentures / bonds which are


deemed to be in the nature of advances by applying the RBI
prudential norms of asset classification and provisioning
applicable to advances.

Investments:

(i) Investments are classified in accordance with RBI


guidelines under three categories viz. Held to Maturity, Held
for Trading and Available for Sale.
(ii) The disclosures of Investments are further classified into
the following six groups :
a)

Government Securities,

b)

Other Approved Securities,

c)

Shares,

d)

Debentures & Bonds,

e)

Subsidiaries/ Joint Ventures and

f) Others
(iii) a) Investments that the Bank intends to hold till maturity
are classified as Held to Maturity.
b) Investments that are held principally for resale within 90
days from the date of purchase are classified as Held for
Trading.

d) An investment is classified as Held to Maturity, Held for


Trading or Available for sale at the time of its purchase and
subsequent shifting amongst categories is done in conformity
with regulatory guidelines.

(iv) Investments classified as Held to Maturity (other than in


Regional Rural Banks) are carried at acquisition cost. In case
the acquisition cost is higher than the face value, the excess
is amortized over the period remaining to maturity and provision
is made for:

(J) +xM l+/H =t x E , +l E


+*
(v) G i ={v E { JdeoEi x E i +i {
V G{- Sxi E Vi il {h x +I E
+Yi E Vi + n r , i = |iE MEh E +iMi
+xnJ E Vi * BE G{ E >{ iB B {xx
E l {ix x E Vi >
(vi) { i vi { MEi x E G{- E +i
{ {xEi E Vi il {h x E +Yi E
Vi , n r , i = |iE MEh E +iMi +xnJ E Vi
* BE G{ E >{ iB +x {xx E l {ix
x E Vi >

b) Diminution, other than temporary, in the value of


investments in subsidiaries / joint ventures.
(v) Investments classified as Held for Trading are revalued
scrip-wise at monthly interval and resultant net depreciation is
recognized and net appreciation, if any, is ignored under each
classification. The book value of the individual scrip is not
changed with the revaluation as indicated above.
(vi) Investments classified as Available for Sale are marked
to market scrip-wise at quarterly intervals and resultant net
depreciation is recognized and net appreciation, if any, is
ignored under each classification. The book value of the
individual scrip is not changed with the revaluation as indicated
above.

94

Ij Oh E x E hFtJ ttd; { Ei E Vi *

(vii) Investments in Regional Rural Banks are valued at


carrying cost.

+x{V |ii (V V/vx 90 nx +vE E +v


E ) E + +Yi x E Vi il +i
MEh E E{h xnhb +{xi B |ii E +I i
Si |vx E Vi + B +I E +x x{nE |ii
r E n ]-+ x E Vi *

(viii) In respect of non-performing securities (where interest/


principal is in arrears for more than 90 days) income is not
recognized and appropriate provision is made for depreciation
in the value of the securities by applying prudential norms of
asset classification and such depreciation is not set-off against
the appreciation in respect of other performing securities.

(vii)
(viii)

x fUe |{i E Mi :
G< E M< |ii E |ix il Ex
+ ]-Bb E E x *
Ex, n, |ii x-nx E il ]{ b]
x *
(x) x E G |{i /x E B x J +Yi
E Vi * {{Ci iE vi MEh x E G
|{i E i E { B x J
Vi ii{Si < vqkse +Ii Ji xM E Vi *
(xi) x E V E xvh i ]E BCSV E]x
B+<BBbB/{bB+< u |ii n E +{x Vi * B
E]x/n E + V E xvh B+<BBbB/
{bB+< +l i V E u xvi xnb E +x
Si {{Ci |i (<]B) n { E Vi *
(xii) i V E E nxn E +x z h E Jiv E
x xxx E Vi *
(U) V {
V n {, V V +i + ni+ E S Ei , E ={Si
+v { Vi = +i +l ni i xq] { E
Uc E V k h V { +l Mi V E
{ Vi *
{ E xx { x +l x E { E nMi +v +l
+i/ni+ E +v E { +Yi E Vi *
(ix)

(ix) Cost of acquisition of investments:

is net of incentives/commission and front-end fees


received in case of securities subscribed, and
excludes commission, brokerage, securities transaction
tax and stamp duty.

(x) Profit/loss on sale of investments is recognized in the Profit


and Loss Account. An amount equivalent to the profit on sale
of investments under Held to Maturity category is first taken
to the Profit and Loss Account and thereafter, appropriated to
the Capital Reserve Account.
(xi) For the purpose of determining market value of
investments, Stock exchange quotations or rates put up by
FIMMDA/PDAI are adopted. In absence of such quotations/
rates, the market value is determined by applying appropriate
Yield to Maturity rates as prescribed by FIMMDA / PDAI or as
per norms laid down by the Reserve Bank of India.
(xii) As per RBI guidelines, the different categories of Swaps
are valued as under:
g) Hedge Swaps
Interest rate swaps which hedges interest bearing assets or
liabilities are accounted for on accrual basis except the Swaps
designated with an assets or liability that is carried at market
value or lower of cost or market value in the financial
statements.
Gains or Losses on the termination of Swaps are recognized
over the shorter of the remaining contractual life of the Swap
or the remaining life of the assets / liabilities.

(V) ]bM {
]bM { xnx E k h nV {ix E l V
Sxi E Vi *
4. +O
(i) +O i V E u xvi nxn E +x{ ={V
B +x{V +O MEi EB Vi il +x{V +O i
|vx E x E { nB Vi *
(ii) il{, i V E E nxn E +x xE +O
(={V) i EB MB |vx E +x niB B |vx E ii
E Vi *
5. l +i +
(i) Ei{ { E +, Vx =xE {xEi n
M , +x { + +x l +i E =xE {i Mi
{ n Vi *
(ii) xh +v E nx EB MB {VMi E +x +i E
+iMi E Vi *
(iii) +I E |vx, BB{B B E{] E UcE, V i
V E E nxn E +x{ v {ri 33.33% E n

h)

Trading Swaps

Trading Swap transactions are marked to market with changes


recorded in the financial statements.
4.

Advances:

(i)

Advances are classified as performing and nonperforming as per guidelines prescribed by RBI and are
shown net of provisions for non-performing advances.

(ii) The provision made for standard advances (performing)


in terms of RBI guidelines is however included in Other
Liabilities and Provisions.
5.

Fixed Assets and Depreciation:

(i)

Premises including Freehold and other Fixed Assets are


stated at historical cost except certain premises, which
are stated at their revalued amount.

(ii) Capital expenditure incurred during construction period


is included under Other Assets.
(iii) Depreciation is provided on diminishing balance method
at the rates and the manner prescribed in Schedule XIV

95

yJGg E |vx , E{x +vx, 1956 E +xS XIV


xvi n { x {ri E +v { E Vi *
(iv)

(v)
(vi)

of the Companies Act, 1956 except that in respect of


ALPMs and Computers, where depreciation is provided
on straight line method @ 33.33% as per guidelines of
Reserve Bank of India.
(iv) In respect of revalued assets, the amount of additional
depreciation consequent to revaluation is transferred from
Revaluation Reserve to the Profit & Loss Account.

{xEi +i E v {xEx E { +iH


+I E E +Ii {V x J +ii E
Vi *
Vb { | E V E +v E nx {vi E
Vi *
n J+ E l +i { +I E Mhx = n
|Si Exx E +x E Vi *

(v) Premium on leasehold land is amortized over the period


of the lease.
(vi) Depreciation on Fixed Assets of foreign branches is
provided as per the applicable laws prevalent in that
country.

6. +i +i (E{] }])
(i) E{] i }], V ] }] E x E{] {Si
x Ei, r b E +z M , il +S +i
x Vi * V }] b E +z +M x E{]
}] E +i +i x VBM*
(ii)

b |{i E{] }] E i +i +i x VM V
}] E /Mi . 10.00 J +vE * < |E E
+i +i =xE G +v E nx +vEi 10 E
+v iE {vi E Vi *

Intangible Assets (Computer Software)

(i)

Software for a computer that cannot operate without that


specific software is an integral part of related hardware
and is treated as fixed assets. Where the software is not
an integral part of the related hardware, computer software
is recognised as an Intangible Asset.

(ii) Computer software acquired from vendors is recognised


as Intangible Asset only if the value /cost of the software
is more than Rs.10 Lakhs. Such intangible assets are
amortised over its effective life subject to a maximum
period of ten years.

7. ES :
(i)

6.

E x ES E v +{x ni+ E xi i
i xn JE lx u V J xE
15(vi)- ES M E *

nvv ES E |i ni E xvh xS =Ji


xi E +x E +i ij EE u {Vi
<E< |h E |M Ei B EE Ex u E
Vi *
E. OS]
E lli OS] Mix +vx, 1972/ {S]/
xx E |vx E v +{x ES E xk
+l i +l {i +n E OS] E Mix
Ei * OS] E Mix i E E +nx Vi xv E
JJ +iE ]] u E Vi * E < xv +{x
+nx OS] E v +{x ni E EE bqgl E +v
{ Ei *
J. {x (B+{+):
<n E (ES) {x xx, 1995 (B+{+) E
+iMi E =x ES E {x E Mix Ei Vxx <
xx E +iMi {x E E{ n + =x ES E
V E 29.09.1995 31.3.2010 E +v E nx
+B * < Vx ix + +E E +v {, xk/
i, V , E li <x ES E E
+v { {x nx E |vx * B<{+-1995 E +iMi
ES xv E E +nx E {j x * {x
E Mix i E E +nx Vi xv E JJ +iE
]] u E Vi * E < xv +{x +nx {x E
v +{x ni E EE x E +v { Ei V
E +xni EE u E Vi *
(ii)

7.

Employee Benefits:

(i)

The Bank has applied Accounting Standard 15(Revised)


- Employees Benefits, issued by the Institute of Chartered
Accountants of India, for recognition of its liabilities in
respect of employee benefits.

(ii) Liability towards long term defined employee benefits is


determined based on actuarial valuation by independent
actuaries at the year-end by using Projected Unit Credit
method as per policies mentioned herein below:
a.

Gratuity:

The Bank pays gratuity in case of retirement or death or


resignation or termination etc. of its employees, having regard
to the provisions of Payment of gratuity Act, 1972 / Service
Awards / Service Regulations, as the case may be. A fund
created out of Banks contribution is maintained by an in-house
Trust for payment of gratuity. The Bank makes contribution to
this fund on the basis of actuarial valuation of its liability.
b.

Pension (ABRPR):

The Bank pays pension under Allahabad Bank (Employees)


Pension Regulations, 1995(ABEPR) to employees, who
exercised option under the Regulations and also to Employees
joining the Bank Service during the period from 29/09/1995 to
31.03.2010. The plan provides for a pension / family pension
on monthly basis in respect of these employees on their
retirement / death, as the case may be, based on the salary
and qualifying service of the respective employees. Employees
covered under ABEPR 1995 are not eligible for Banks
contribution to Provident Fund. A fund created out of Banks
contribution is maintained by an in-house Trust for payment of
Pension. The bank makes contributions to this Fund on the
basis of actuarial valuation of its liability in respect of Pension,
which is conducted by approved Actuary .

96

M. +E E i (BB)
v ES E |nx E Vi + < =tM
Zi/+b E +x - { lvi x E
+x Vx E +iMi l{i vi ES E {
E n E v EB MB j E |i{i *
M xvE Vx + E +{x Vx E +iMi +E E
i ni E v |vx EE x E +v {
Ei * x |iE i E +xni EE u
E Vi * BB vi Mix E E -x Ji
E Vi *
P. +E xEnEh
E BB v E ={M Ex ES E E S
E E +vEi 30 nx E vE +E E xEnEh
E +xi |nx Ei * xk +l i x { ES E
Ji V vE +E, +vEi 240 nx fuU xEnEh E
+xi n Vi * ES u iM{j nx E
xEnEh E vE +E E 50% + +vEi 120
nx iE i * M xvE Vx + E < Vx E
+iMi +E xEnEh ni E v |vx EE x
E +v { Ei x E +xni EE u E
Vi * B +E xEnEh E Mix E E -x Ji
E Vi *

c.

d. Leave Encashment:
The Bank permits encashment of Privilege Leave balance to
it employees availing LFC facility, up to the maximum limit of
30 days leave in a block of four years of service. Encashment
of privilege leave standing to the credit of an employee is also
permitted in case of retirement or death subject to a maximum
of 240 days. In case of resignation from the service by an
employee, such encashment is restricted to 50% of the balance
of privilege leave subject to a maximum of 120 days. It is a
non-funded scheme and the Bank maintains a provision on
account of its leave encashment liability under the Scheme
on the basis of actuarial valuation, which is conducted by
approved Actuary . Payment of such leave encashment is
made through the Profit and Loss Account.
e. Sick Leave:

R. U]]
E E ES u SEi +v { U]] { S
Vx =i{z E +EEi i +{x ni+ fuU B |vx
Ei V |Si i/x E +x +xY * M
xvE Vx + E <E |vx EE x E +v
{ Ei V E +xni EE u E Vi *
(iii)

(iv)

(v)

Leave Fare Concession (LFC):

This facility is granted to the employees and extends to


reimbursement of travelling expenses incurred for the family
members of the employee concerned, as defined under the
Scheme, in terms of service rules as amended from time to
time as per Industry wide Settlements / Awards. It is a nonfunded scheme and the Bank maintains a provision on account
of it s liability in respect of Leave Fare Concession under the
Scheme on the basis of actuarial valuation, which is conducted
by approved Actuary. Payment in respect of LFC facility is
made through the Profit and Loss Account.

The Bank maintains a provision for its liability on account of


any contingency arising out of employees going on sick leave
on medical ground, which is permissible in terms of prevailing
service conditions / rules. It is a non-funded scheme and the
Bank maintains the provision on the basis of actuarial valuation,
which is conducted by approved Actuary..

CrJg rlr" fuU mkck" b E +v i xv E M


+nx E { +Yi E Vi + +
x Ji |i E Vi *

(iii) In respect of Provident Fund, the contribution for the period


is recognized as expense and charged to Profit & Loss
account.

nxE 27.04.2010 E =tM- Zi/Ci x] E +x


nxE 01.04.2010 E +l n E E +B
ES {i +nx xk Vx u Ii *

(iv) In terms of Industry wide Settlement/Joint Note dated


27.04.2010, employees joining the services of the Bank
on or after 01.04.2010 are covered by defined contribution
retirement benefit scheme.

+{v ES E = E x J +]]Ei
E { +Yi E Vi V vi
B |nx E Vi *

(v) Short-term employee benefits are recognized as an


expense at an undiscounted amount in the Profit and Loss
Account of the year in which the related services are
rendered.

8. + + E +Yx
xxJi E + +- E ={S +v { E Vi

8.

Recognition of Income and Expenditure:

Income and Expenditure are accounted for on accrual basis


other than those stated below:

+x{V +i E { MEi +O { V il +x +
E E j iE +xvi E Vi *
ii) + E E { { V |{i + + V E E Mhx
vi E xvh +vE u +n V EB Vx
E Vi *
9. {]]
E u |{i EB E ={Si +v { -x J +Yi
E Vi *
{Sx {]] { M< +i i {]] E Mix -x
J E { +Yi E Vi *
i)

(i)

Interest and Other Income on advances classified as nonperforming assets are recognized to the extent realized.

(ii) Income from interest on refund of Income Tax and Interest


Tax are accounted for in the year the order is passed by
the concerned assessing officer.
9. Lease
Rentals received by the Bank are recognized in the profit and
loss account on accrual basis.
Lease payments for assets taken on operating lease are
recognized as an expense in the profit and loss account.

97

10. |i +Vx
|i <C] E + b<]b +Vx E {] i
xn JE lx u V J xE 20 |i +Vx
fUu ylwmth fUe st;e ni> |i <C] E +Vx E Mhx
+v i E <C] E i +i J x +
E M EE E Vi * |i <C] b<]b +Vx E
Mhx <C] E i +i J + E nx
E b<] <C] ht E |M E E Vi *

10. Earnings Per Share


Basic and Diluted Earnings per Equity Share are reported in
accordance with the Accounting Standard 20 Earnings per
share issued by the Institute of Chartered Accountants of
India. Basic earnings per equity share are computed by
dividing net income by the weighted average number of equity
shares outstanding for the period. Diluted earnings per equity
share are computed using the weighted average number of
equity shares and dilutive potential equity shares outstanding
during the period.

11. Evx
(i) E i |vx S (xxi E{E E (]) i) +
+lMi nx E i E Vi * E M + { S
E E |vx, |V E n + E x E |M EE
E Vi * J xE 22 E +x{x : i E xn
JE lx u V ""+ { E i J"",
+i E Eh =i{z +lMi E +i + niB, V
{i +v |iix E M , ix {j E il iE
xB MB n x Vx E x + E n E
|M EE +Yi E Vi * +lMi E +i i
iE +Yi x E Vi V iE E 'i xSi'
x VB E {{i E M + ={v M V
+lMi E +i E VBM*
(ii) xxi E{E E (]) V E +i E { i x
VBM V B {] |h E E{x +-E +vx
1961 E ii xn] +v E +n x E E Mix
E nM*

11. Taxation
(i)

Provision is made for both current tax (including Minimum


Alternative Tax - MAT) and deferred tax. Current tax is
provided on the taxable income using applicable tax rate
and tax laws. In compliance with Accounting Standard
22 :Accounting for Taxes on Income issued by the
Institute of Chartered Accountants of India, deferred Tax
Assets and Liabilities arising on account of timing
differences and which are capable of reversal in
subsequent periods are recognised using the tax rates
and the tax laws that have been enacted or substantively
enacted till the date of the Balance Sheet. Deferred Tax
Assets are not recognised unless there is virtual
certainty that sufficient future taxable income will be
available against which such deferred tax assets will be
realised.

(ii) Minimum Alternative Tax (MAT) credit is recognised as


an asset only when and to the extent there is convincing
evidence that the company will pay normal income tax
during the period specified under the Income Tax Act
1961.

12. xEn B i xEn

12. Cash and Cash equivalents

xEn B i xEn l xEn + B]B xEn il


i W E *

Cash and cash equivalent include cash on hand and in ATMs


and balances with RBI.

13. +S +i ({xEi +i i) { '<{]


+ ' E +Yi E M il i xn
JE lx u V J xE 28 '<{] +
' E +x -x Ji |i E Vi *

13. Impairment of Losses (if any) on Fixed Assets (including


revalued assets) are recognized and charged to Profit & Loss
Account in accordance with the Accounting Standard 28
Impaired of Assets issued by The Institute of Chartered
Accountants of India.

14. +EE niB il |vx + +EE +i

14. Contingent Liabilities and Provisions & Contingent


Assets

i xn JE lx u V J xE 29
|vx, '+EE niB B +EE +i' E +x{
E |vx i +Yi Ei V E {U P]x E
{h{ ix ni =i{z i +
E +lE vx E | ni E
vx i +{Ii M + V ni E E
x +xx E V Ei *

(i) In conformity with AS 29. Provisions, Contingent


Liabilities and contingent Assets. Issued by the Institute of
Chartered Accounts 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.

xxJi E B |vx +Yi x E M :

(ii) No provision is recognized for

E)

{U P]x+ =i{z E< i ni + VE


+ii = P]x E x +l x x { x EM
+l E B +xSi P]xB V {hi E E
xjh x *

a) 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

J)

E< ix ni V {U P]x+ =i{z + =


+Yi x E M CE :

b) Any present obligation that arises from past events but is


not recognized because

(i)

(ii)

98

i)

ii)

iii)

x E +lE vx E |
ni E vx i +{Ii M +l
ni E E x +xx x E V Ei
* B ni E +EE ni+ E { nV E
Vi * <xE xi +i { xvh E Vi
+ ni E E = M E B |vx E Vi
VE B +lE vx E | ,
=x +ii +vh {li E UcE V ni E
E x +xx x E V Ei *
k h +EE +i E +Yi x E
M CE <E {h{ B + E +Yx
Ei V E x V Ei*

i)

It is not probable that an outflow of resources embodying


economic benefits will be required to settle the obligation;
or

ii)

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 never be realized.

99

+xS-18 J ]{{h
1.

(i)

(ii)

2.

(i)

(ii)

SCHEDULE - 18 NOTES ON ACCOUNTS

i V E E nxn E +x{ ={V il


+x{V +O i {{i |vx E M *
E E k li E Vi Ex E =q
31.03.2011 E E +x{V +O E v i
V E u xvi xxi |vx E {I . 48.00
Ec ({U . 48.00 Ec) E +iH E
i S |vx E M*
+i J vx E +iMi |] E +E x
31.03.2011 iE E M * J Vx Ji
E l il |vx E il J+ i J+
E +{ |] E vx E |Mi { *
<E +iH i V E E {{j E +x
30.09.2010 iE E +v E +i J J E x
il V |] E {lCEh il 31.03.2011 iE E
E E {h x V E { , +i: E<
|vx +{Ii x *
EU J+ V, +O B x] Ji E v
h E i/Ji E x/vx E E |Mi
{ * =H Ij < {{i |Mi E qxV |vx E
+i E E E J { vx E |, +M
i, iiE x M*

. . . E xn E +x, V E nxE 17 S,
1998 E =xE bB.+.BB.423.22.04.001/
97-98 , 330 J+ E v z CiMi
B +CiMi J {x +i, V E .141.39
Ec x @h , E 2000 B 2004 E nx
|vx E E lxii E n M l B ""+EE
J-x"" J M l* .. x nxE 09 n,
2010 E +{x bB.+.BB. . 8002/22.04.001/
2010-11 E +x <x 330 J+ E, B
J+ E { , ix { E E i h
{] x Ex E +xi n *
3. ni z xE xh { S Ex E n
+E i (+lMi E i) E u . 1822.95 Ec
({U . 1315.35 Ec) E |vx {{i x M*
(ii)

4.

(i)

(E) 31.03.1997, 31.03.2005 il 31.03.2007 E


{i B Ei{ { E vwlbqoEx +xni
EE E {] E +v { E M + G:
.125.99 Ec (hVE B +), .370.08
Ec (hVE B +) il .298.32 Ec
(hVE) E =vM vx E {xx +Ii
E V E M* |iE {xEi { {
E {Ex +Ji { E VBM*
{xEx E Eh .4.45 Ec (Mi .4.68
Ec) E +iH E {V +Ii +ii
E +xS .14 (n vii) O+x +O E +iMi
v + n M *

1.(i) Adequate provision has been made in respect of


Performing and Non-performing Advances in terms of
Reserve Bank of India (RBI) guidelines.
(ii)

Prudential Floating Provision of Rs.48.00 Crore (Previous


Year Rs.48.00 Crores) is held as at 31.03.2011 in respect
of gross Non-performing Advances over and above the
minimum provision prescribed by RBI with a view to
strengthen the financial stability of the Bank.

2.

(i) Under Inter-Branch reconciliation, initial matching of


entries has been done upto 31.03.2011. Reconciliation
of unmatched entries with the balance in Branch
Adjustment account and transactions between Head
Office and branches including branches inter-se is in
progress. Further, in terms of RBIs circular, segregation
of debit and credit entries in Inter Branch Account
pertaining to the period upto 30.09.2010 and remaining
outstanding as on 31.03.2011 have resulted in net credit,
hence no provision is required.

(ii)

At some branches, preparation of details / balancing /


reconciliation of accounts relating to Balances with Banks
and NOSTRO Accounts are in progress. Since substantial
progress has been made in the above areas, the
management is of the view that the impact of
reconciliation, if any, on the accounts of the Bank will not
be material.

(iii)

In terms of RBI directives as contained in their


DBS.CO.SMC.423.22.04.001/97-98 dated March 17,
1998, old difference in various Personal & Impersonal
Account Heads in respect of 330 branches aggregating
net credit of Rs. 141.39 crores was transferred to Head
Office during the year 2000 & 2004 and kept in
Coningency Account- General. The RBI in terms of their
letter no. DBS.CO.SMC.No. 8002/22.04.001/2010-11 of
December 09, 2010 have permitted not to report these
330 branches as arrear carrying branches to Reserve
Bank of India in Banks quarterly statement on Balancing
of Books.

3.

The provision for income tax (including deferred tax)


aggregating to Rs.1822.95 Crores (previous year Rs.
1315.35 Crores) held is considered adequate by the Bank
after taking into consideration various judicial decisions
on disputed issues.

4.

(i) Certain premises were revalued on the basis of the


reports of the approved valuers during the year ended
on 31.03.1997, 31.03.2005 and 31.03.2007 and upward
revision amounting to Rs. 125.99 Crores (commercial and
residential), Rs.370.08 Crores (commercial and
residential) and Rs. 298.32 Crores (commercial)
respectively had been credited to Revaluation Reserve.
Depreciation on Revalued premises is worked out each
year on its written down value. Additional depreciation of
Rs.4.45 Crores (previous year Rs.4.68 Crores) on
account of revaluation has been transferred from
Revaluation Reserve Account and shown in
Miscellaneous Income under the head Other Income
included in Schedule No. 14 item (vii).

100

V Jb E +M Mi ={v x , B +I
E Jb il x E Mi { |i E M *
(iii) V Mi ={v x {]] +v i {]]vi
{ | E {vx Mi +v { +l +Ji
{ E M ni*
(iv) xxEi {k i {VEh E +{SEiB { E
Vx :E. 1990 + 1998 E nx EEi B x G:
29 + 10 ] 2 + {k Fhe=e dR
VxE Mi . 0.86 Ec ({U . 0.86
Eb) *
J. +xn E, x< n BE {]]vi {k VE
Mi .0.09 Ec ({U . 0.23 Ec) *

(ii) Depreciation has been charged on composite cost of Land


and Building, where separate cost of land is not available.

+i +i i +x +i E h xxx *

(v)

(ii)

(v)

(iii) Premium on leasehold land has been amortized over the


period of lease, based on cost or written down value,
where original cost is not available.
(iv) For the following properties registration formalities are yet
to be completed:
a. 2 residential properties purchased during the year 1990
& 1998 at Kolkata & Bhubaneshwar consisting of 29 &
10 flats respectively with total original cost of Rs.0.86
Crores (Previous year Rs.0.86 Crores).
b. 1 leasehold property at Anandlok, New Delhi with
original cost amounting to Rs. 0.09 Crores (previous
year Rs.0.23 Crores).

h / Particulars

+l / Opening Balance
E nx Vc / Additions during the year
E nx {vi / Amortized during the year
<i / Closing Balance
5.

Other Assets include intangible Assets, details of which


are as under.
(< Ec ) /(<in crore)

.0.44 Ec (Mi .0.44 Ec) E +Ei E


x E v E E + G{/]E] |{i Ex
*
(ii) , {ix bS il <C] Vc S+ b/
S E{] b E x] i E {I +O
E x . 770.89 Ec (Mi . 849.82 Ec)
*
(iii) i V E E nxn E +x x Ec
(Mi . 9.78 Ec) E , V E b ]
S] h |ii E G x E
x , E {V |Ii Ji +ii E M *
(i)

E i{h J xi J 3(iii) =Ji ,


b ] S] h E E nx {vi
|ii E +Ei E >{ . 83.33 Ec (Mi
.112.32 Ec) E +iH +Vx Mi il V
x { + P]E ..E E xnx x J E x + xvx E {xx
x E { n M *
6. E x E nx Vx ]bM E B E< k{h x
E + x E +i E |iiEh E *
7. E nx E x i E (i E ]{i) E
+vx +]x +v { . 217/- |i E | {
|iE . 10/- E 2,95,15,418, <C] , V E .
670.00 Ec (MM) , V E* . 670.00 Ec
(MM) , 29.52 Ec (MM) {V Ji B
640.48 Ec (MM) | Ji V E M*

5.

/ Current Year

Mi

/ Previous Year

20.05

12.38

19.19

10.04

3.65

2.37

35.59

20.05

(i) In respect of Investments of face value of Rs.0.44


Crore (Previous year Rs.0.44 Crore), the Bank is yet
to receive scrips / certificates.
(ii) Total Investments made in shares, convertible debentures and units of equity linked mutual fund / venture
capital funds and also advances against shares aggregate to Rs. 770.89 Crores (Previous year Rs.
849.82 Crores).
(iii) As per RBI guidelines, an amount of Rs NIL Crores
(Previous Year Rs.9.78 Crores) being an amount
equivalent to post Tax profit on sale of Held to Maturity category securities is transferred to Capital Reserve Account.

(iv) V

(iv) In respect of Held to Maturity category as stated in


significant Accounting Policy No. 3 (iii), the excess of
acquisition cost over the face value of the security
amortized during the year amounts to Rs.83.33 Crores
(Previous year Rs.112.32 Crores) has been netted off
from Income on Investment shown under the head
Interest Earned of Profit and Loss Account in terms
of RBI guidelines.
6.

The Bank has not made any financing for margin trading
during the year and also not securitised any assets.

7.

During the year, Bank has issued 2,95,15,418 equity


shares of Rs. 10/- each at a premium of Rs. 217/- per
share amounting to Rs. 670.00 Crore (approx.) on
preferential allotment basis to Govt. of India (President of
India). Out of Rs. 670.00 Crore, Rs. 29.52 Crore (approx.)
credited to Share Capital Account and Rs. 640.48 Crore
(approx.) to Share Premium A/c.

101

8.1.

E E nxn E +x |E]Eh/

8.1

{V/

Disclosure in terms of RBI guidelines:

(< Ec )

Capital

h
Particulars

/(<in crore)

Mi

Current Year

Previous Year

12.96

13.62

8.57

8.12

4.39

5.50

58.00

iv)

+B+ (%) / CRAR (%)


+B+ - ]-* {V (%) / CRAR Tier I Capital (%)
+B+ - ]-** {V (%) / CRAR Tier II Capital (%)
i E E vh E |iii

v)

Percentage of the shareholding of the


Government of India
+<{b+< V EE =M M< Amount raised by issue of IPDI

x / NIL

55.23
150.00

Amount raised by issue of Upper Tier II instruments

x / NIL

500.00

i)
ii)
iii)

+{ ]-** V E =M M<

vi)

8.2. x / Investments

(< Ec )

h
Particulars
(1)

/ (<in crore)

Mi

Current Year

Previous Year

x E / Value of Investments
x E E / Gross Value of Investments
(a) i / In India
(b) i / Outside India
(ii) +I i |vx / Provisions for Depreciation
(a) i / In India
(b) i / Outside India,
(iii) x E x / Net Value of Investments
(a) i / In India
(b) i / Outside India,
x { +I E { vi |vx E Sx
(i)

(2)

43544.84
x /NIL
297.78

Movement of provisions held towards depreciation on investments.


(i) +l / Opening balance
(ii) Vc: E nx E M |vx / Add: Provisions made during the year
(iii) DxtYk& rlJuN fuU yvtuFl fuU rtY ={M E M |vx
Less: Write off/ write back of excess provision during the year
(iv) <i / Closing balance
8.2.1

38680.43
x /NIL
251.80

x /NIL

x /NIL

43247.06
x /NIL

38428.63
x /NIL

251.80
130.85

430.30
0.00

84.87
297.78

178.50
251.80

(< Ec )

{ xnx/ Repo Transactions


E nx
xxi E

E nx
+vEi E

E nx
nxE +i E

Minimum
outstanding
during the year

Maximum
outstanding
during the year

Daily Average
outstanding
during the year

/(<in crore)

lli
31.03.2011
As on
31.03.2011

{ E +iMi S M< |ii / Securities sold under repos


(i) E

|ii / Govt Securities


(ii) E{] @h |ii
Corporate Debt Securities

450.00

4500.00

725.25

0.00

0.00

0.00

0.00

0.00

75.00

2000.00

51.71

0.00

0.00

0.00

0.00

0.00

{ E +iMi Jn M< |ii

/
Securities purchased under reverse repos
(i) E |ii /Govt. Securities

(ii) E{] @h |ii /


Corporate Debt Securities

102

8.2.2 M-BB+ x {] / Non-SLR Investment Portfolio


i) nxE 31.3.2011 E lli M-BB+ x E VEi P]x/ Issuer composition of Non SLR investments as on 31.03.2011
(< Ec ) /(<in crore)

. VEi

xV {]
E mebt

"" <x]] Ob""


|ii E mebt

""+x ]b""
""+x ]b""
|ii E mebt |ii E mebt

No. Issuer

Amount

Extent of
Private
Placement

Extent of Below
Investment
Grade Securities

Extent of
Unrated
Securities

Extent of
Unlisted
Securities

(1) (2)
(i)
(ii)
(iii)
(iv)
(v)

(3)

(4)

(5)

(6)

(7)

{B / PSUs
k lB / FIs
E / Banks
|<] E{]

917.01
450.64
193.59

917.01
450.64
193.59

0.00
0.00
0.00

0.00
0.00
0.00

52.82
31.83
0.00

Private Corporate

1473.65

1305.83

0.00

167.82

129.27

117.22
5123.76
8275.87

0.00
5123.76
7990.83

0.00
102.69
102.69

0.00
0.00
167.82

117.22
0.00
331.14

+xM lB
H =t

Subsidiaries / Joint
Ventures
(vi) +x/Others
={E/ Sub-total

i E
M |vx

Provision held towards


Depreciation

/ Total

297.78

49.93

7978.09

/ Shares
bS B xb / Debentures and Bonds
+xM B H =t / Subsidiaries and Joint Ventures
+x / Others
E /Total
ii) M-x{nE M-BB+ x/Non performing Non-SLR investments
h
i)
ii)
iii)
iv)

Particulars

+l- / Opening balance


E nx {vx / Additions during the year since 1st April
E nx E / Reductions during the above period
<i- / Closing balance
vi E |vx / Total provisions held
b<] / Derivatives
b n E/V n {
h

581.64
2453.25
117.22
5123.76
8275.87

(< Ec ) /(<in crore)


Mi

S
Current Year

Previous Year

4.04
0.00
2.00
2.04
2.04

6.04
0.00
2.00
4.04
4.04

8.3

8.3.1

(iii)

/(<in crore)

Mi

Current Year

Previous Year

500

500

Losses which would be incurred if counterparties failed to


fulfill their obligations under the agreements

x /NIL

x /NIL

Collateral required by the bank upon entering into swaps

Banking

Banking

(56.02)

(43.69)

Particulars
(i)
(ii)

(< Ec )

/ Forward Rate Agreement/ Interest Rate Swap:

{ E E xx vx / Notional principal of swap agreements


+M E E +iMi |i{I +{x Sxri+ E { Ex
i = x P]
{ x { E u Ui {E

(iv)

{ x @h VJ { ExpEh

(v)

Concentration of credit risk arising from the swaps


{ E E =Si / Fair value of the swap book

103

8.3.2 BCSV { ]bb V n b<u] : x


8.3.3 b<] VJ BC{V vi |E]Eh
MhiE |E]Eh :
E E ]V J {Sx E ix EiE Ij l, ]
+, b + B E + E { H E M
Vx {i =kni B E+{ E E l |Ii
+vE |nx E M *
E E ]V xi k b<] Ji, ={M E
Ij, +xnx |G i @h B l +{x {Vx ,
+E B ]{ E l +xni Ji
]bM iw |iVi +vE hi * xi G E
||<] ]bM {Vx E n Jn/G i E +l {]
+{x E Jn/G B +{x OE E E u E ] E
EM E +vvx b<] =i{n |nx Ex E +xi *

8.3.2 Exchange Traded Interest Rate Derivatives: NIL


8.3.3 Disclosures on risk exposure in derivatives
Qualitative Disclosure:
Operation in the Treasury Branch of the Bank are segregated
in three functional areas i.e. Front Office, Mid Office and Back
Office, which are provided with trained officer with defined
responsibilities and back up roles.
The Treasury Policy & Derivative policy of the Bank lays down
the type of financial derivatives instruments, scope of usages,
approval process as also the limits like the open position limits,
deal size limits and stop loss limits besides delegated power
for trading in the approved instruments. The policy also allows
purchase / sale of call or put options to hedge cross currency
proprietary trading positions and to offer derivative products
to its customer subject to back to back covering by the Bank.

] + {Vx E b x{ni Ei VE b
+ ]bM E xnx E xMx Ei il +M +iH
{lx i i = =SSi |vE E VxE
Vi * b + {E ={Eh l, B]B, B+, ExC]
B {vi E v nxE +v { xnx i k
VJ E { Ei * +Ec E {]M VJ |vx
M E E Vi V +i B ni |vx vi xnE
E i E VJ |< +Mi Ei * E +
|i{I {] i b E x{] Ei *

The Front Office takes positions and executes the deals while
the Mid Office monitors the transactions in the trading book
and deviations of excesses, if any, are brought to the notice of
higher authorities. The Mid office also measures the financial
risk for transactions on a daily basis through measurement
tools such as MTM, VAR, Convexity and modified durations.
The figures are reported to Risk Management division, which
appraises the risk profile to the Assets and Liability
Management committee. The Back office settles all the deals
with counter parties.

E +i +l ni E { xq] {, V V
+l Mi E +l k h V { E
Vi , E UcE V +i +l ni+ E |iI
Ex V n { E |ni +v { Jr E Vi
* { {i x { +l P] E { E nMi
EE +l +i/ni+ E EE E { Ei
E Vi * xnx E |i{I {] E B fUthvtuhux lB
il E Vx b +xni BC{V + E +n
* + +Yx, | B bE=] E B i W E,
b< B B+<BBbB u - { V nxn E
+xh E Vi *

Interest Rate Swaps which hedge interest bearing assets or


liabilities are accounted for on accrual basis except the Swaps
designated with an asset or liability that is carried at market
value or lower of cost or market value in the financial
statements. Gain or Losses on the termination of Swaps are
recognised over the shorter of the remaining contractual life
of the Swap or the remaining life of the assets/liabilities. Trading
Swap transactions are marked to market with changes
recorded in the financial statements. The counterparties to the
transactions are Banks and corporate entities and deals
undertaken are within the approved exposure limits only. The
guidelines issued by RBI, FEDAI & FIMMDA from time to time
for recognition of Income, Premium and Discount are followed.

{hiE |E]Eh / Quantitative Disclosures


G..

Sl No

Particulars

(i)

(ii)

(iii)
(iv)

(v)

(< Ec )

b<] (xx )/ Derivatives (Notional Principal Amount)


E) VM E B / a) For hedging
J) ]bM E B / b) For trading
btfUoTz ] E] {Vx (1)/ Marked to Market Positions (1)
E) +i (+) / a) Asset (+)
J) ]bM E B / b) Liability (-)
@h BC{V (2)/ Credit Exposure (2)
V n BE |ii E {ix E | (100*PV01)

/(<in crore)

Ex
b<]

V n
b<]

Currency
Derivatives

Interest rate
derivatives

x /NIL
x /NIL
x /NIL

500.00
500.00
x /NIL

x /NIL
x /NIL
x /NIL

x /NIL
(56.02)

x /NIL

Likely impact of one percentage change in interest rate (100*PV01)


E) VM b<] { / a) on hedging derivatives
J) ]bM b<] { / b) on trading derivatives

x /NIL
x /NIL

0.27
0.00

Maximum and Minimum of 100*PV01 observed during the year


E) VM { / a) on hedging
J) ]bM { / b) on trading

x /NIL
x /NIL

0.27
0.00

E nx { M

100*PV01 E

+vEi B xxi

104

+i Mhk / Asset Quality


8.4.1 +x{V +i / Non-Performing Asset
n/
8.4

Items
(i)
(ii)

(iii)

(iv)

(< Ec ) /(<in crore)


Mi

Current Year

Previous Year

0.79

0.66

1221.80

1078.25

x +O x Bx{B (%) / Net NPAs to Net Advances (%)


Bx{B E Sx (E) / Movement of NPAs (Gross)
(E) +l / (a) Opening balance
(J) E nx {vx / (b) Additions during the year
(M) E nx E / ( c) Reductions during the year
(P) <i / (d) Closing balance
x Bx{B E Sx / Movement of Net NPAs
(E) +l / (a) Opening balance
(J) E nx {vx / (b) Additions during the year
(M) E nx E / (c) Reductions during the year
(P) <i / (d) Closing balance
Bx{B E |vx E Sx (xE +i { |vx E UcE)

1747.07

1238.15

(1320.95)

(1094.60)

1647.92

1221.80

470.15

422.11

940.97

407.94

674.75

(359.90)

736.37

470.15

Movement of provisions for NPAs (excluding provisions on standard assets)

(E) +l / (a) Opening balance


(J) E nx EB MB |vx / (b) Provisions made during the year
(M) +iH |vx E <] + / <] E /

751.65

641.64

800.00

830.21

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

688.10

(720.20)

(P) <i

863.55

751.65

/ (d) Closing balance

8.4.2 |vx

EV +x{i/ Provision Coverage Ratio


E nxn E +x 31.03.2011 E E E |vx EV +x{i

75.67% * (Mi 78.95%)


The provision coverage ratio of the bank in terms of RBI guidelines as on 31.03.2011 is 75.67% (Previous Year 78.95%)

{xM` x/ Loan Restructuring:


{xM`i +i E /Particulars of Accounts Restructured:
b+
CDR
ij

BB< @h

+x

SME Debt

Others

Total

{xMXi

{xMXi

Mechanism

Restructuring

Restructuring

14
590.35

1508
263.11

14389
1637.31

15911
2490.76

47.00

3.40

27.97

78.37

2
36.74

166
34.78

672
216.77

840
288.28

4.55

0.56

2.56

7.67

151
19.40

511
16.57

662
35.97

0.61

0.41

1.02

16
627.08

1825
317.28

15572
1870.65

17413
2815.01

51.55

4.57

30.94

87.06

8.4.3 @h

{xMXi
xE +O

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )

Standard Advances
Restructured

Sacrifice (diminution in the fair value)

{xMXi
+xE +O

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )

Sub-standard Advances
Restructured

{xMXi nMv
+O
Doubtful Advances
Restructured

/ Total

Sacrifice (diminution in the fair value)

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )
Sacrifice (diminution in the fair value)

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )
Sacrifice (diminution in the fair value)

105

(< Ec )

/(<in crore)

Jn M< / S M< +xVE k {k E h :

8.4.4

Details of financial assets sold to Securitisation / Reconstruction Company for Asset Reconstruction:.

(< Ec ) /(<in crore)


S
{U

n/
Items
i)
ii)

Current Year

Previous Year

101

21.05
21.05

0.00
84.79

4.95

0.00

4.95

84.79

Ji E J / No. of Accounts
B / + E S M Ji E E (|vx P]E)

Aggregate value (net of provisions) of accounts sold to SC / RC


iii) E |i /Aggregate consideration
iv)

Mi +ii E M Ji E M +iH |i

v)

Additional consideration realised in respect of accounts transferred in earlier years


x { E /x /
Aggregate gain/(loss) over net book value

8.4.5

Jn M< / S M< +xVE k {k E h :


Details of non-performing financial assets purchased/ sold:

E. Jn M< +x{V k +i: x


J. S M< +x{V +i E h :

A. Non-performing financial assets purchased: NIL


B. Details of non-performing financial assets sold:

h
Particulars

(< Ec ) /(<in crore)


Mi

Current Year

Previous Year

1. S MB Ji / No. of accounts sold


2. E E / Aggregate Outstanding
3. |{i E |i / Aggregate consideration received

1
21.05
26.00

xE +i { |vx /

8.4.6

Provisions on Standard Asset

h
Particulars

xE +i E B |vx /
9.

101
0.00
84.79

+x{i

Provisions towards Standard Assets

Particulars

(ii)

Current Year

Previous Year

362.57

280.98

/ Business Ratios:

h
(i)

(< Ec ) /(<in crore)


Mi

Mi

Current Year

Previous Year

E xv E |iii E { V +
Interest Income as a percentage to Working Funds

8.56%

8.02%

E xv E |iii E { M-V +

Non-interest income as a percentage to Working Funds

E xv E |iii E { {SxMi

1.07%

1.45%

(iii)

Operating Profit as a percentage to Working Funds


+i { |i /
Return on Assets

2.37%

2.44%

(iv)

1.11%

1.16%

10.63

8.45

0.0670

0.0576

(v)

|i ES (V il +O) (. Ec )

(vi)

Business (Deposits plus Advances) per employee (Rs. In Crore)


|i ES (. Ec ) /
Profit per employee (Rs. In Crore)

106

10. +i

ni |vx / Asset Liability Management:


+i B ni+ E Ei{ n E {{Ci {]x 31.03.2011
Maturity pattern of certain items of assets and liabilities as on 31.03.2011

(< Ec )

/(<in crore)

n p

{{Ci {]x
Maturity Pattern

Foreign Currency

(]< E])

+O

=v

+i

niB

(Time buckets)

Deposits

Advances

Investments

Borrowings

Assets

Liabilities

1nx / Day 1
2 7 nx / 2 to 7 days
8 14 nx / 8 to 14 days
15 28 nx / 15 to 28 days
29 nx 3
29 days to 3 months

974.46

404.33

34.38

4418.58

827.82

283.28

379.06

3650.98

1688.89

39.15

8.91

690.78

1238.09

3136.24

2588.54

547.65

133.78

696.31

297.22

30498.44

7967.20

581.84

949.89

1634.98

1557.34

8479.81

8237.92

371.51

1455.89

550.43

1264.57

15612.44

8229.57

557.96

44.37

723.85

210.49

57094.61

32880.19

3836.86

200

82.41

56.73

5330.60

12567.77

6785.08

300.00

387.18

385.93

2691.00

18232.65

30243.73

3411.90

496.28

133.23

131887.16

93624.88

43247.06

6918.18

5262.22

5143.60

3 +vE + 6 iE
Over 3 months and up to 6 months

6 +vE + 1 iE
Over 6 months and up to 1 year

1 +vE + 3 iE
Over 1 year and up to 3 years

3 +vE + 5 iE
Over 3 years and up to 5 years

5 +vE
Over 5 years

E / Total
11.
11.1

BC{V / Exposures:
{n Ij E BC{V / Exposure to Real Estate Sector:

h / Category
(E) |iI BC{V / A) Direct exposure
(i) vE - / Residential Mortgages

(< Ec )
S

/(<in crore)

Mi

Current Year

Previous Year

3676.00

3197.75

3330.00

2981.31

3831.00

2312.28

4.84
3.60

6.36
4.49

=v =x {k { vE u {hi |ii ,V =vEi E EV


+x E { *
Lending fully secured by mortgages on residential property that is or will be
occupied by the borrower or that is rented

- V |lEi Ij @h +O x i {j HMi + @h
(ii)

-of which individual housing loans eligible for inclusion in priority sector advance
hVE -{n / Commercial Real Estate

- =v hVE -{n (E x, Jn {E lx, q hVE


{, {E x, Eun hVE {, +tME +l
Mn lx, ], +vOh, E B xh +n) { vE u |ii *
BC{V M-xv +vi (BxB) B *

Lending secured by mortgages on commercial real estates (office buildings,


retail space, multi-purpose commercial premises, multi-family residential buildings,
multi-tenanted commercial premises, industrial or warehouse space, hotels,
land acquisition, development and construction, etc.). Exposure includes
non-fund based (NFB) limits;
(iii)

vE u li |ii (BB) B +x |iiEi BC{V x Investments in Mortgage Backed Securities (MBS) and other securitised
exposures
E. / a. Residential
J. hVE -{n / b. Commercial Real Estate.

107

(< Ec )
S

h /
Category

/(<in crore)

Mi

Current Year

Previous Year

1105.00
8620.44

1130.67
6651.55

(J) +|iI BC{V / B) Indirect Exposure


] + E (BxBS) B + k E{x
(BSB) { xv +vi B M-xv +vi BC{V
Fund based and non-fund based exposures on National Housing Bank (NHB)
and Housing Finance Companies (HFCs).
{n Ij E BC{V /Total Exposure to Real Estate Sector
11.2 {V

V BC{V

/ Exposure to Capital Market:

G . /

n /

Sl.No.

Item

(I)

(< Ec )
S

(III)

(IV)

(V)

<C] , {ix b/bS il <C] =xJ S+ b E x] EB


MB |iI x VxE xv +xxi: E{] @h xi x E Vi*
683.63

696.74

Advances against shares /bonds/debentures or other securities or on clean basis


to individuals for investment in equity shares(including IPOs/ESOPs), convertible
bonds, convertible debentures and units of equity-oriented mutual fund;

0.00

0.00

Advances for any other purpose where shares or convertible bonds or convertible
debentures or units of equity-oriented mutual fund are taken as primary security;

0.58

x /Nil

Advances for any other purposes to the extent secured by 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 fund does not fully cover the advances;

0.00

151.58

<C] (+<{+/<B+{B i), {ix b B bS, <C] =xJ


S+ b E x] x i H E E n +O

+x E |Vx , V |lE |ii E { +l {ix b +l


{ix bS +l <C] =xJ S+ b E x] Vi , i +O

E {E |ii +l {ix b +l {ix bS +l <C] =xJ


S+ b u Ii iE E +x E |Vx i +li V |lE |ii E UcE
/{ix b/{ix bS/<C] =xJ S+ b +O E {hi: E x Ei *

]E E E |ii B +|ii +O il ]E E B E] E E + V M] *
Secured and unsecured advances to stock brokers and guarantees issued on
behalf of stock brokers and market makers;

(VI)

vx V]x E x x< E{x E <C] i |iE E +nx E B E{] E


/b/bS +l +x |ii E {I Ei @h +l Ei xv @h*
Loans sanctioned to corporate against security of shares/ bonds/ debenture or
other securities or on clean basis for meeting promoters contribution to the
equity of new companies in anticipation of raising resources;

(VII)

S+ b E x] E v E u M< n |iri

+l <C] =xJ

Underwriting commitments taken up by Banks in respect of primary issue of


shares or convertible bonds or convertible debentures or units of equity
oriented mutual funds;

Vx ]bM i ]E E E k{h /

Financing to stock brokers for margin trading;


(X)

105.00

x /

=t {V xv ({VEi B M-{VEi nx) E BC{V


All exposure to Venture Capital Funds (both registered and unregistered)

{V V E E BC{V

/ Total Exposure to Capital Market

108

129.00

NIL

x /

NIL

33.73

x /

NIL

|ii <C] }/< E r E{x E {E @h

Bridge loans to companies against expected equity flows/issues;


(VIII) E |lE < +l {ix b +l {ix bS

(IX)

Mi

Current Year Previous Year

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;
(II)

/(<in crore)

x /

NIL

x /

NIL

x /

NIL

x /

NIL

4.73

1.50

827.67

978.82

11.3

VJ h E] BC{V/ Risk Category wise Country Exposure:

VJ
h

31.03.2011 E
BC{V (x)

Risk
Category

Exposure (net)
as on 31.03.2011

xMh / Insignificant
E / Low
v / Moderate
+vE / High
i +vE / Very High
|ivi / Restricted
+-Gb] / Off-credit

11.4

E
vi |vx

31.03.2010 E
BC{V (x)

Provision held
as on 31.03.2011

Exposure (net)
as on 31.03.2010

31.03.2011

x
x
x
x
x
x
x

1022.38
664.26
41.72
43.81
0.05
0.00
8.92

E / Total

(< Ec )

/NIL
/NIL
/NIL
/NIL
/NIL
/NIL
/NIL

E
vi |vx

31.03.2010

Provision held
as on 31.03.2010

x
x
x
x
x
x
x

1090.44
739.09
195.89
0.54
25.28
1.47
8.84

x /NIL

1781.14

/(<in crore)

/NIL
/NIL
/NIL
/NIL
/NIL
/NIL
/NIL

x /NIL

2061.55

E u +iGi BE =vEi (BB), =vEi (VB) E h


Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL) exceeded by the bank

(< Ec )/(<in crore)


=vEi E x

BE BC{V

Ei

31.03.2011 E lli E

Name of Borrower

Single Exposure limit

Sanctioned Limit

Outstanding Balance as on
31.03.2011

2591.30

2530.96

=.|. { E{x .
U.P. Power Corporation Ltd.

+|ii +O/
h

11.5

(< Ec ) /(<in crore)


Mi

Current Year

Previous Year

Unsecured Advance:

Particulars
a)
b)

1700.58

E +|ii +O / Total Unsecured Advances


< +i |ii u li +O V +vE { |,+xY{i,
|vE +n
Of which advances backed by intangible securities such as charge
over rights, licenses, authority etc.

12484.48

12300.32

589.62

691.68

v / Miscellaneous:
11.6.1 E nx +E i E M |vx E / Amount of Provisions made for Income tax during the year:
(< Ec ) /(<in crore)
h
S
Mi
11.6

Particulars

Current Year

+E i |vx / Provision for Income Tax


+lMi @h i |vx / Provision for Deferred Tax
11.6.2 E u MB MB nb : x (Mi : x) / Penalties imposed by RBI: NIL
12.1 V E Exph / Concentration of Deposits:
c VEi+ E E V

Total Deposit of twenty largest depositors

Previous Year

455.66

554.24

51.94

11.05

(Previous Year: Nil)

(< Ec ) /(<in crore)


13155.00

E E E V c VEi+ E V E |ii
Percentage of Deposits of twenty largest depositors to Total Deposits of the bank

109

9.97%

+O E Exph

12.2

/ Concentration of Advances:

(< Ec ) /(<in crore)

c =vi+ E E +O

Total Advances to twenty largest borrowers

12521.82

E E E +O c =vEi+ E +O E |ii
Percentage of Advances to twenty largest borrowers to Total Advances of the bank

13.37%

BC{V E Exph / Concentration of Exposures

12.3

(< Ec ) /(<in crore)

c =vEi+/OE E E BC{V Total Exposure to twenty largest borrowers/ customers


E E E BC{V c =vEi+/OE E BC{V E |ii
Percentage of Exposure to twenty largest borrowers/customers to Total Exposure of the
bank on borrowers/customers
12.4

Bx{B E Exph /

13.58%

Concentration on NPAs

(< Ec ) /(<in crore)

S Bx{B Ji E BC{V (E) / Total Exposure to top four NPA accounts (Gross)
Ij Bx{B /

12.5

G .

Ij

Sl. No.

Sector

1
2
3
4
12.6

14592.97

296.55

Sector-wise NPAs

< Ij E +O
Bx{B E |ii
Percentage of NPAs to Total
Advances in that sector

E B r Miv / Agriculture & Allied activities


=tM (<G, P, v + n) / Industry (Micro, Small, Medium and Large)
/ Services
HE @h / Personal Loans

4.06
0.77
4.29
1.29

Bx{B E Sx / Movement of NPAs

h/ Particulars
1 +| 2010 E E Bx{B (+l) E nx r (xB Bx{B)

(< Ec )

/(<in crore)

Gross NPAs as on 1st April 2010(Opening Balance)


Additions (Fresh NPAs) during the year
={ Vc (E) P]B / Sub- Total (A)
P]B / Less:(i) =zx Upgradations
(ii) (+{Ob Ji E M< E UcE)
Recoveries (excluding recoveries made from upgraded accounts)
(iii) <]-+/ Write-offs
={ Vc (J) / Sub- Total (B)

1221.80
1747.07
2968.87

Gross NPAs as on 31st March 2011 (closing balance) (A-B)

1647.92

31 S 2011 E lli E Bx{B (<i) (E-J)

12.7

n +i Bx{B + V /

325.13
275.92
719.90
1320.95

Overseas Assets, NPAs and Revenue

h/ Particulars

(< Ec ) /(<in crore)

E +i / Total Assets
E Bx{B / Total NPAs
E V / Total Revenue

3629.79
0.94
72.44

110

12.8

ix {j |Vi B{ (Vx J xE E +x Ei E Vx +{Ii ): x


Off-Balance Sheet SPVs sponsored (which are required to be consolidated as per accounting norms) : NIL

13.

E nx E |{i + :
Vx + M-Vx { |{i Ex: .

17.82

Ec

Income from Bancassurance business during the year:


Commission received on life & non-life insurance business: Rs. 17.82 Crores
14.
14.1

+iH |E]Eh / Additional Disclosures:


x Ji x J MB |vx B +EEiB
Provisions & Contingencies debited to Profit & Loss Account:

(< Ec )/(<in crore)


h

Particulars

Current Year

Previous Year

130.84

(102.44)

800.00

830.21

81.81

2.85

455.66

554.24

51.94

11.05

12.34

(44.35)

98.88

90.67

1631.47

1342.22

(a)
(b)
(c)
(d)
(e)
(f)
(g)

x { i |vx / Provision for Depreciation on Investment


Bx{B i |vx / Provision toward NPA
xE +i i |vx/Provision towards Standard Assets
+E i |vx/Provision towards Income Tax
+lMi E +i/niB/Deferred Tax Assets / Liabilities
+<+B i |vx/Provision for IRS
+x (h)/Others (details)
E/ Total

14.2

+l |vx / Floating Provisions:

(< Ec )/(<in crore)

h/ Particulars
(a)

2010-11

2009-10

48.00

48.00

Quantum of Floating Provision made during the year

x /NIL

x /NIL

Purpose and amount of draw down during the year

x /NIL

x /NIL

48.00

48.00

+l |vx Ji +l /
Opening Balance in Floating Provision Account

(b)
(c)
(d)

E nx E M +l |vx E {h
E nx b b=x E E B |Vx
+l |vx Ji <i

Closing Balance in Floating Provision Account


14.3

Mi

|Ii +h : . 6.18 Ec (+<+B i ] |Ii )


Draw Down from Reserves: Rs. 6.18 Cr (from special Reserve for IRS)

15.

J xE E +x{ +x{x
E x i xn JE lx u V xxH J xE (BB) E +x{x E + B J xE E |vx
E +x xxJi |E]Eh EB Vi *
Compliance with Accounting Standards
The Bank has complied with the following Accounting Standards (AS) issued by the Institute of Chartered Accountants of
India and the following disclosures are made in accordance with the provisions of such Accounting Standards:

111

16.1

J xE 5 +v i x +l x, { +v n + J xi {ix:
Accounting Standard 5- Net Profit or Loss for the period, prior period items and changes in accounting policies:

{ +v vi + + xxx

Income and Expenditure relating to prior period are as under:

(< Ec )/(< In crore)


h/Particulars
+/Income
/Expenditure
x/Net

2010-11

2009-10

1.29

(9.34)

4.01

3.03

(2.72)

(12.37)

16.2 V +Yx E v BB 9 E +iMi xEn +v {


+Yi + n i iiE x l |E]Eh E
+Ei x l*
16.3.1 E x 1 +| 2007 ES l {x (x<),
{x ({x), OS], +E xEnEh, BB +
U]] E v +{x ni+ E +Yx i
i xn JE lx u V J xE 15
(BB 15) (vi) E +{x *

16.2

16.3.2 OS] E lx { <n E ES {x Vx


({x) xE {x ({x) Vx E E E
BB{ E v +i xh ni B i E xx
=SSi x u n M xh + {i E M
+n E {h{ E E {I +x xi B,
E E <x {x E OS] E Mix E,
Vx E E { +xi + E E xnE b E
+xnx E +x <x {x E OS] E Mix Ex E
l +H 2010 n E n M< + <xE lx {
<x {x E OS] E Mix E Vx * <B
31.03.2011 E lli + {x ({x) E
v E< |vx x i E M + x +{Ii *
16.3.3 Vx {i EB Vx E {x ({x) E {
Si .168.77 Ec E |vx .150 Ec E
|M ES E = M E B, V 20.09.1995 E E
E i l {xi, Vxx {x x 1995 i {x
E E{ x +{x, ui {x E{ (B{{+ 1995) x {c +iH E v E E ni+ E
{I |vx Ex E B E M* .18.77 Ec
E k 2009-10 EB MB .33 Ec E
{U |vx E l E "E ni Ji' +ii
E M< V ={ { 16.3.2 l=Ji xx =SSi
x E +n E +x{x OS] E Mix E {
l* < |E < v E |vx .51.77 Ec *
< .32.61 Ec E Mix =xE E n M
VxE x +H, 2010 Vx E +iMi {x G l
+ EU Mix {j nMi i{ ES E Exx
E n M Vx n |{i B l* . 19.16
Ec E E E xh E S B l E ni E
Mix Ex E B {{i { M*

16.3.2.Consequent upon judgement & order passed by the


Honble Supreme Court of India in finally deciding on
the Banks SLP in the matter of its pension(old) scheme
in lieu of gratuity styled Allahabad Bank Employees
Pension Scheme (Old) making it obligatory on the part
of the Bank to pay gratuity even to these pensioners,
the said Scheme has been discontinued in terms of
approval of the Banks Board of Directors with prior
permission from the Government, w.e.f. October 2010,
simultaneously paying gratuity to these pensioner.
Hence, further provisioning is neither made nor required
in respect of Pension (Old) as on 31.03.2011 and in
future.

Income items recognised on cash basis were either


not material or did not require disclosure under AS 9
on Revenue Recognition.

16.3.1.The Bank adopted Accounting Standard 15(Revised)Employee Benefits, issued by Institute of Chartered
Accountants of India, for recognition of its liabilities in
respect of employee benefits, viz, Pension (New),
Pension (Old), Gratuity, Leave Encashment, LFC and
Sick Leave w.e.f. 1st April 2007.

16.3.3.Out of the accumulated provision for Pension (Old)


amounting to < 168.77 Crore as at the time of
discontinuation of the Scheme, < 150.00 Crore has been
utilised towards provisioning against Banks liabilities
in respect of Additional Load on account of 2nd Option
for Pension (ABEPR-1995) by a section of employees
who were in the Roll of the Bank as on 29.09.1995 but
did not exercise option for Pension Regulations-1995
earlier. The remaining < 18.77 Crore has been
transferred to Outstanding Liabilities A/C to club with
an earlier provision of < 33.00 Crore made in F.Y. 200910, towards payment of gratuity in compliance of
Honble Supreme Courts Order, as mentioned in
paragraph 17.3.2. above, making total provision on this
score to the tune of < 51.77 Crore. Out of this, payment
to the tune of < 32.61 Crore has already been made to
those whose names appeared in the Pension Scroll
under the Scheme in October 2010 and some of the
legal heirs of eligible deceased ex-employees whose
claims were received. The balance < 19.16 Crore is
considered to be sufficient to meet the payment liability
to the remaining judgement beneficiaries.

112

16.3.4 xvE/M-xvE ES l, {x (B{<+)


(+ {x (x<) E { Vx Vi ), OS], +E
xEnEh, B.B.. + +E E v E
E ni E
(E)

16.3.4. Banks liabilities in respect of the remaining funded/


non-funded employee benefits, viz., Pension (ABEPR)
[hitherto known as Pension(New)], Gratuity, Leave
Encashment, LFC and Sick Leave are recognised on
the basis of actuarial valuation carried out by approved
Actuary as per

i xn JE lx u V J xE
15(vi) xvi ri +

(a) Principles laid down in AS 15 (Revised) issued by


the Institute of Chartered Accountants of India,
and

(J) i EE lx u V nxn VBx 26 E


+x +xni EE u Ex Ex E +v
{ +Yi E Vi *
EE +xx / Actuarial assumptions:
h / Particulars

(b) guidelines GN 26 issued by Institutes of actuaries


of India.

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
+E
(B<{+)
OS]
xEnEh
BB +E
Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

8.5%

8.5%

8.5%

8.5%

8.5%

Salary Escalation Rate


n / Attrition Rate(p.a)

4%
1%

4%
1%

4%
1%

0.00
1%

4%
1%

Expected Rate of Return


on Plan Assets

8%

8%

0.00

0.00

0.00

(ABEPR)

i n / Discount Rate
ix E gi n
Vx +i { + E |ii n

E) vi E ix {ix :
A) Change in the present value of Obligation:

(< Ec )
h / Particulars

/ (< In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
+E
(B<{+) OS]
xEnEh
BB
+E
Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

a) E + {+
PVO at the beginning of the year

C.Y.
P.Y.

686.82
614.69

419.72
390.75

103.50
97.68

14.14
11.47

21.51
19.81

b) V Mi
Interest cost

C.Y.
P.Y.

52.38
47.60

32.83
30.12

7.25
7.05

0.44
0.37

1.83
1.58

c) S Mi
Current Service Cost

C.Y.
P.Y.

527.48
66.30

25.10
15.51

20.12
3.70

0.00
0.00

4.94
1.80

d) |nk
Benefits Paid

C.Y.
P.Y.

(141.27)
(39.34)

(67.00)
(28.43)

(36.30)
(19.23)

(17.98)
(13.64)

0.00
0.00

C.Y.
P.Y.

1453.37
(2.43)

188.55
11.78

34.67
14.30

24.01
15.94

3.71
(1.69)

C.Y.
P.Y.

2578.77
686.82

599.20
419.72

129.24
103.49

20.61
14.14

31.99
21.51

e)

vi { EE x/ (+)
Actuarial Loss/ (Gain) on Obligation

f) E +i {+
PVO at the close of the year

113

J) Vx {k E =Si {ix

/B) Changes in the Fair Value of Plan Assets:

(< Ec ) / (< In crore)


Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
+E
(B<{+) OS]
xEnEh
BB
+E

h / Particulars

Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

a)

E +i
Vx +i E =Si
Fair Value of Plan Assets at the
beginning of year

C.Y.
P.Y.

686.82
614.69

419.72
390.75

C.Y.

54.95

33.58

P.Y.

49.17

31.26

C.Y.

1131.51

52.51

Employers Contribution

P.Y.

50.78

21.58

|nk

C.Y.

(141.27)

(67.00)

Benefits Paid

P.Y.

(39.34)

(28.43)

EE (x)/+

C.Y.

49.60

(0.33)

Actuarial (Loss)/Gain

P.Y.

11.52

4.57

Fair Value of Plan Assets

C.Y.

1781.59

438.48

at the close of year

P.Y.

686.82

419.72

Vx +i { iE |i

C.Y.

57.00

28.28

Actual return on Plan Assets

P.Y.

53.08

31.91

b) Vx

+i |ii |i

Expected return of Plan Assets


c) ES
d)

e)

E +nx

+i E =Si

f)

g)

M) x EE x / (+ ) / C
h / Particulars

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

(+)

b) Vx +i { EE x/(+)
Actuarial loss / (gain) on
Plan assets (C)
c) x EE (x)/+
Net Actuarial loss / (gain)
d) +v +Yi EE (x)/+
Actuarial loss / (gain) recognized
in the period
e)

/ (< In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
+E
(B<{+) OS]
xEnEh
BB
+E
Pension

a) vi { EE x /
Actuarial loss / (gain) on
obligation (B)

(< Ec )

Net Actuarial Loss / (Gain)

+x+Yi EE x
Unrecognised actuarial loss

C.Y.
P.Y.

1453.37
(2.43)

188.55
11.78

34.67
14.30

24.01
15.94

3.71
(1.69)

C.Y.
P.Y.

(49.60)
(11.52)

0.33
(4.57)

0.00
0.00

0.00
0.00

0.00
0.00

C.Y.
P.Y.

1403.77
(13.95)

188.88
7.21

34.67
14.30

24.01
15.94

3.71
(1.69)

C.Y.
P.Y.

1403.77
(13.95)

188.88
7.21

34.67
14.30

24.01
15.94

3.71
(1.69)

C.Y.
P.Y.

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

114

D) ;wtlvt

bku btg htrN

/ Amount recognized in Balance Sheet:

(< Ec )

h / Particulars

/ (< In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
+E
(B<{+) OS]
xEnEh
BB
+E
Pension

Gratuity

(ABEPR)

Leave
Encashment

LFC

Sick Leave

E) E +i {i
vi E ix
a)Present value of defined benefit

C.Y.

2578.77

599.20

129.24

20.61

31.99

obligation at the end of the Year

P.Y.

686.82

419.72

103.49

14.14

21.51

C.Y.
P.Y.

1781.59
686.82

438.48
419.72

0.00
0.00

0.00
0.00

0.00
0.00

C.Y.
P.Y.

797.18
0.00

160.72
0.00

62.04
25.04

24.45
16.31

10.48
1.70

P]B :/Less:
J) E {i { Vx
+i E =Si
b)Fair value of Plan Assets at
close of the Year

ix {j +Yi M-xvr
x ni /(+i)
c) Unfunded Net Liability/ (Asset)
recognized in Balance Sheet

R ) B x Ji +Yi :
E) Expenses recognized in Profit & Loss account

(< Ec )
h / Particulars

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
+E
(B<{+) OS]
xEnEh
BB
+E
Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

E) S Mi

/ (< In crore)

C.Y.
P.Y.

527.48
66.30

25.10
15.51

20.12
3.70

0.00
0.00

4.94
1.80

C.Y.
P.Y.

52.38
47.60

32.83
30.12

7.25
7.05

0.44
0.37

1.83
1.58

C.Y.
P.Y.

54.95
49.17

33.58
31.26

0.00
0.00

0.00
0.00

0.00
0.00

d) Net actuarial loss / (gain)

C.Y.

1403.77

188.88

34.67

24.01

3.71

recognized in the year

P.Y.

13.95

(7.21)

(14.30)

(15.94)

1.69

R) x

C.Y.

1928.69

213.23

62.04

24.45

10.48

e) Net Benefit Expense

P.Y.

50.78

21.58

25.04

16.31

1.70

a) Current service cost

J) V Mi
b) Interest Cost

M) Vx +i { |ii +
c) Expected return on Plan Assets

P) +Yi x EE
x/ (+)

115

S) ix {j +Yi ni+ E Sx :
F) Movements in the Liability recognized in the Balance Sheet

(< Ec )

/ (< In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
+E
(B<{+) OS]
xEnEh
BB
+E

h / Particulars

Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

E) +l x ni

C.Y.

0.00

0.00

0.00

0.00

0.00

a) Opening Net Liability

P.Y.

0.00

0.00

0.00

0.00

0.00

J) x

C.Y.

1928.69

213.23

62.04

24.45

10.48

b) Net Benefit Expense

P.Y.

50.78

21.58

25.05

16.31

1.70

M) +n E M +nx

C.Y.

(1131.51)

(52.51)

0.00

0.00

0.00

c) Contribution paid

P.Y.

(50.78)

(21.58)

0.00

0.00

0.00

M) <i x ni

C.Y.

797.18

160.72

62.04

24.45

10.48

d) Closing Net Liability

P.Y.

0.00

0.00

25.05

16.31

1.70

P]B / Less:

U) ]] u xB J MB x E |ii :

(%)/(in %)

G) Investment percentage maintained by the Trust:

h
Particulars

{x (B<{+)

OS]

Pension (ABEPR)

Gratuity

Mi

Current Year

Previous Year

Mi

Current Year

Previous Year

Exp E E |ii / Central Govt. Securities

21.35

33.97

31.08

36.58

V E E |ii / State Govt. Securities

37.37

23.37

30.20

20.89

39.58

40.34

38.56

41.72

V VxB / Special Deposit Scheme

0.85

1.57

0.16

0.17

+x x / Other Investment

0.85

0.75

0.0

0.64

=SS i E{] b ({B/{B)


High Quality Corporate Bonds (PSU/PFC)

16.3.5 E nx E x +{x B ES E B {x E
E{ J n Vxx <n E (ES)
{x x 1995 E +iMi{ {x E E{ x
n l* < |G E {h{ 11557 ES x
E{ n + E E .708.07 Ec E ni =`x
{c* <E +iH E nx E ES E n
OS] E E OS] Mix +vx 1972 vx
E g n M<* <E {h{ E E OS] ni
.39.63 Ec g M<*
J xE (BB) 15 E +x ES , .747.70
Ec E {h E (+li n {x E{ i .708.07
Ec + OS] r E { .39.63 Ec)
-x Ji |i E Vx +{Ii * il{
i V E x VxE Ij E E E ES
i {x E{ {x: Jx + OS] r-

16.3.5. During the year, the Bank reopened the pension for
such of its employees who did not opt for the pension
scheme under Allahabad Bank (Employees) Pension
Regulations 1995 earlier. As a result of exercise of
which by 11557 employees, the Bank has incurred a
liability of <708.07 Crore. Further, during the year, the
limit of gratuity payable to the employees of the Bank
was also enhanced pursuant to the amendment to the
Payment of Gratuity Act, 1972. As a result, the gratuity
liability of the Bank has increased by < 39.63 Crore.

116

In terms of the requirements of the Accounting Standard


(AS) 15, Employee Benefits, the entire amount of
< 747.70 Crore (i.e., < 708.07 Cr for second option of
pension + < 39.63 Cr due to increase in ceiling of
gratuity limit) is required to be charged to the Profit
and Loss Account. However, the Reserve Bank of India
has issued a circular DBOD No.BP.BC.80/21.04.018/

2010-11 dated 9th February, 2011 on Re-opening of


E{h xE ={S E v nxE 9 2011
Pension
Option to Employees of Public Sector Banks
E {{j b+b {..80/21.04.018/2010and Enhancement in Gratuity Limits Prudential
11 V E * ={H {{j E |vx E +x E
Regulatory Treatment. In accordance with the provisions
.747.70 Ec E E E {S E +v {vi
of the said Circular, the Bank would amortise the amount
of < 747.70 Crore over a period of five years.
EM* inx .149.54 Ec (+li .141.61 Ec
Accordingly, < 149.54 Crore (i.e., < 141.61 Cr + < 7.93
+ . 7.93 Ec, .747.70 Ec {S ) E
Cr, representing one-fifth of < 747.70 Cr) has been
-x Ji |i E M * ... E ={H
charged to the Profit and Loss Account. In terms of the
{{j E +{I+ E +x +M V< M<
requirements of the aforesaid RBI circular, the balance
+li . 598.16 Ec (.747.70 Ec - . 149.54
amount carried forward, i.e., < 598.16 Crore (< 747.70
Cr < 149.54 Cr) does not include any employees
Ec) E +M B/xk B ES
relating to separated/ retired employees.
x *
Had such a circular not been issued by the RBI, the
n i V E x {{j V x E i i
profit of the Bank would have been lower by < 598.16
J xE 15 E +{I+ E +x E E .598.16
Crore pursuant to application of the requirements of
Ec P] M i*
AS 15.
16.4 E x 9 u{I Zi/nxE 27.04.2010 E H 16.4. The Bank has since completed the process of
x] E +x ix vx E Exx E |G { E
implementing wage revision on account of 9th Bipartite
Settlement/ Joint Note dated 27.04.2010. The exercise,
* E ix E v x E E +nx i
including payment of Banks contribution to PF on arrear
|G 31.03.2010 E lli E u EB MB
salary, has been completed within the aggregate
.275.00 Ec E |vx (k 2008-09 +
provision of < 275.00 Crore held by the Bank as on
2010-11 E B G: .122 Ec + 153 Ec
31.03.2010 (< 122 Crore and < 153 Crore provided in
E |vx) E l { E M< * {i k E
F.Y. 2008-09 and 2009-10, respectively). The ad-hoc
.47.00 Ec E inl |vx E |M ui {x E{
provision from earlier F.Y. amounting to 47.00 Crore
E Eh {c +iH E v E E ni i E
has been applied towards Banks liability in respect of
M *
Additional Load on account of 2nd Pension Option.
16.5 01.04.2010 +l =E n E +x ES 16.5. Pending formulation of the Defined Contribution
Retirement Benefit Scheme for the employees joining
i {i +nx xk Vx E +i {
o the Bank on or after 01.04.2010, estimated amount
nB Vx iE E +nx E +xxi i |vx
of Banks contribution has been provided to debit of
E -x Ji x J M *
profit and loss account for the year.
16.6 M] {]M - J xE (BB) 17 M] {]M* 16.6. Segment Reporting Accounting Standard (AS) 17
Segment Reporting
M] SxB Ei k h xE E { 4 E
Segment information is given in the Consolidated
+x n M< *
Financial Statements in terms of para 4 of the Standard.
16.7 vi {IE E |E]Eh - J xE (BB) 18 16.7. Related Party Disclosures Accounting Standard (AS)
18 List of Related Parties and Transactions
vi {] E S B xnx
E) vi {] E x, E E l =xE v il EB MB xnx :
(< ttFtu b) / (< In Lacs)
a) The names of the related parties, their relationship with the bank and transaction effected:

G . x
No.

Name

{nx

{v

Designation

Remuneration

{U

Current Year

Previous Year

Chairman & Managing Director

20.37

21.70

Sl.

31.03.2011 E lli Vn xnE / Existing Directors as on 31.3.2011


V.{. n+
+vI B |v xnE
1
Shri J. P. Dua
2

b. E

Shri D. Sarkar
3

B. +. xE

E{E xnE

Executive Director

13.57

2.48

Shri M. R. Nayak

Executive Director

12.72

1.92

{ xnE / Ex Directors
1
E. +. Ei
Shri K. R. Kamath
2

E{E xnE

i{ +vI B |v xnE

E. E. +O

i{ E{E xnE

Ex-Chairman & Managing Director

4.60

17.69

Shri K K Agarwal

Ex-Executive Director

2.17

14.31

117

OS] il +E xEnEh vi E xvh O


E{x E +v { E { EE |h u E Vi
il inx = ={H Sx x M *

Expenses towards gratuity and leave encashment are


determined actuarially on an overall company basis annually
and accordingly have not been considered in the above
information.

J)

+xM E{x :
i)
+E <xx ]b ({h i )
M) H =t :
i)

b) Subsidiary:
i) All Bank Finance Limited (wholly owned)
c) Joint Venture:

BB+<(<b) .

i) ASREC (India) Ltd.


ii) Universal Sompo General Insurance Company
Limited.

x { Vx < E{x ]b
P) BB] :
i)
<n { Oh E*
ii)

ii)

d) Associates:
i) Allahabad U.P. Gramin Bank

n Oh E

ii) Sharda Gramin Bank

+ E <xx . E E 100% , x {
Vx < E{x 30% E B ={Ci n Ij
Oh E E E 35% E

The Bank is holding 100% shares in AllBank Finance Limited,


30% shares in Universal Sompo General Insurance Company
Limited and 35% shares of the above mentioned two Regional
Rural Banks.

+xM B Ij Oh E E l xnx E J (BB)


18 E vi {IE |E]Eh E { 9 E vx Ji B
x E M V V u xji =t E =x +x vi
{IE E l =xE xnx vi J Ex H Ei
V V u xji *

The transactions with the subsidiaries and Regional Rural


Banks have not been disclosed in view of para 9 of the (AS)18 Related Party Disclosure, which exempts state controlled
enterprises from making any disclosure pertaining to their
transactions with other related parties which are also state
controlled.

(R) x { Vx <xx E{x ]b E E


E{x E l E xnx xxi :-

e)

Transactions with associated company namely


Universal Sompo General Insurance Company
Limited are as follows:

(< Ec )
h / Particulars
+Vi + /Income Earned
|nk | / Insurance Premium Paid

16.8 {]] |E]Eh


E) E E { E / + v+ E B z {]]
* < v xxi |E]Eh E Vi :i)

xxJi |iE +v i xi x E Ex {SxMi


{]] E +iMi xxi {]] Mix E M :

31.03.2011 E lli +{i {]] +v i n E

/ (< in Crores)

/ Current Year

Mi / Previous Year

7.42

5.49

6.57

2.98

16.8. Lease Disclosure:


A)

The Bank has various operating leases for office /


residential facilities. Disclosures in this regard are as
under:

i)

Total of future minimum lease payments under noncancellable operating leases for each of the following
periods:

Rent payable for unexpired lease period as on 31.03.2011

(< Ec )
Vn {]] +v / Existing Lease Period

n
S

BE +xvE / Not later than one year


BE E n il {S +xvE /
Later than one year and not later than five years
{S E n / Later than five years

118

/ (< in Crores)

/Amount Payable

/ Current Year

Mi / Previous Year

32.96

36.11

110.25
29.99

94.66
37.13

ii)

iii)
iv)

ix {j E iJ E xi x E Ex ={ {]] E
+iMi |{i EB Vx |ii xxi ={ {]] E
Mix E M : x

ii)

The total of future minimum sublease payments expected


to be received under non-cancellable subleases at the
balance sheet date: NIL.

vi +v i B x E h +Yi {]]
Mix : . 66.20 Ec

iii)

Lease payments recognised in the statement of profit and


loss for the period: Rs. 66.20 Crores.

vi +v i B x E h +Yi |{i
(+l |{) ={-{]] E Mix :x

iv)

Sub-lease payments received (or receivable) recognised


in the statement of profit and loss for the period: Rs. NIL.

B)

Financial Lease:

J) k {]] :
E E { k {]] E +iMi E< {k x *

16.8

|i +Vx : J xE (BB) 20 : / Earning Per Share Accounting Standard (AS) 20:

G .
Sl.
No.

Bank is not having any assets under Financial Lease.

h
Particulars

E.

|i + b<]b +Vx

Basic and Diluted Earning Per Share (<)

S /
Current Year

Mi /
Previous Year

31.85

27.01

(<)

|i + b<]b +Vx E Mhx / Calculation of Basic and Diluted Earning Per Share
G . h
Sl.
No.

Particulars

E.

<C] vE E i |nx E stlu Jtt x (< Ec )

Net Profit for the year attributable to Equity Share holders (< in Crores)

J.

<C] E i +i J

Weighted average number of Equity Shares

M.

|i +Vx (E/J) (.)

Basic Earning per Share (A/B) (Rs.)

P.

|i xx

Nominal Value per share (Rs.)

S /
Current Year

Mi /
Previous Year

1423.11

1206.33 Cr.

44,67,80,864

44,67,00,000

31.85

27.01

10/-

10/-

16.10 + { E i J - J xE (BB) 22

16.10.Accounting for Taxes on Income: Accounting


Standard (AS) 22

E nx +lMi E i E Vx E { . 51.94
Ec(x) ({U x x . 11.06 Ec) E B
x Ji x J M* ix {j E iJ E lli
+lMi E +i / ni+ E J P]E ix{j E il E
+x xxi :

During the year, an amount of Rs. 51.94 Crores (Net) (Previous


year Rs.11.06 Crores) has been debited to the Profit & Loss
Account by way of adjustment of deferred tax. The major
components of Deferred Tax Assets/ Liabilities as on Balance
Sheet date are as under:

119

h
Particulars
of the Year

E |
At the beginning

(< Ec )

/ (< In crore)

Vx
Vc/(P]B)

E {i {

Adjustment
Add / (Less)

At the close of
the Year

Mi

Current Yr.

Previous Yr.

x/NIL

x/NIL

x/NIL

x/NIL

x/NIL

1.23

0.65

3.45

0.58

4.69

1.23

3.66

6.99

(3.65)

(3.33)

3.66

x/NIL

2.12

(2.12)

x/NIL

4.89

9.76

(0.20)

(4.87)

4.69

4.89

0.00

1.34

(1.34)

0.00

held as Investments

28.81

21.29

51.74

7.52

80.55

28.81

E / Total

28.81

22.63

51.74

6.18

80.55

28.81

Deferred Tax Liabilities (Net)

23.92

12.87

51.94

11.05

75.86

23.92

+lMi E +i

Mi

Mi

Current Yr. Previous Yr. Current Yr. Previous Yr.

Deferred Tax Assets

+E xEnEh i |vx
Provision for Leave Encashment

+E i |vx
Provision for Sick Leave

x / NIL

vNl nu;w tJ"tl (vwhtle)


Provision for Pension(old)

BB i |vx
Provision for LFC

E / Total
+lMi E niB
Deferred Tax Liabilities

+S +i E
Depreciation of Fixed Assets

x E { vi |ii {
={Si rfkU;w +n V
Interest Accrued but not due on securities

cfU YaxeYb uKe fuU rlJuNt vh yt:rd; fUh yrCtt; lne


fUh;t gtrfU cfU fuU rJath mu Rm mkck" b mbg b fUtuRo yk;h
lnek ni> rlJuNt vh yt:rd; fUh fuU yrCtt; vh Cth;eg ml=e
tuFtfUth mk:tl fUe rJNuMt mttnfUth mrbr; fuU rJath fuU
ylwmth, cfU lu Rm bwu fUtu Cth;eg cfU mkD fuU vtm btdo=Nol
nu;w Cust ni gtrfU Wtud sd; b Rm rJMg vh fUtgoJtne fUhlu
b fUtVUe rCt;tYk ni>
16.11k +i E { E E +i E {{i + {
J xE (BB) 28 <{] + B] |V x
* |vx E =H xE E +x 31.03.2011 E
E E +x +i E< <{] x + +Yx
i E< i{h i x

The Bank does not recognise deferred tax on HTM category


of investments as in Banks opinion; there is no timing
difference in this regard. Pursuant to the opinion of the Expert
Advisory Committee of the Institute of Chartered Accountants
of India on recognition of deferred tax on investments, the bank
has referred the issue to the Indian Banks Association for their
guidance on the matter since there is a difference in treatment
on this subject in the industry.

16.12|vx, +EE niB + +EE +i E v


J xE (BB) 29 E +x |E]Eh

16.12. Disclosure in terms of Accounting Standard (AS) 29 on


Provisions, Contingent Liabilities and Contingent
Assets:

16.11 A substantial portion of the banks assets comprise of


financial assets to which Accounting Standard (AS)
28 Impairment of Assets is not applicable. In the
opinion of the management, there is no impairment of
other assets of the Bank as at 31.03.2011 to any
material extent requiring recognition in terms of the said
standard.

120

ni+ i |vx E Sx (<i ) :

/ Movement of Provision and Contingencies (Closing balance):

Particulars

(< Ec )

/ (< In crore)

Mi /

Current Year

Previous Year

863.55

751.65

297.78

251.80

(fU) YlveY nu;w tJ"tl / (a) Provision toward NPA


(F) rlJuN vh bqgtm nu;w tJ"tl / (b) Provision for Depreciation on Investment
(d) btlfU ytr;gt nu;w tJ"tl / (c) Provision towards Standard Assets
(D) ytgfUh nu;w tJ"tl / (d) Provision towards Income Tax
(a) +lMi E (+i/niB) E / (e) Deferred Tax (Assets) / Liabilities
(a) ylwMkde ttC fUh / (f) Fringe Benefit Tax
(A) yg / (g) Others

362.57

280.98

1747.08

1291.42

75.86

23.92

26.04

26.04

1112.19

641.76

4485.07

3267.57

/ Total

17. Customer Complaints:


(a)
(b)
(c)
(d)

E + i Ei E J/No. of Complaints pending at the beginning of the year


E nx |{i Ei E J/No. of Complaints Received during the year
E nx xi E M< Ei E J/No. of Complaints Redressed during the year
E +i i Ei E J/No. of Complaints pending at the end of the year

18. EM

85
2025
2032
78

E{ u {i +vxh /Awards passed by the Banking Ombudsman :

(a) E + Exi x E M +vxh E J/No. of unimplemented awards at the beginning of the year
(b) E nx EM E{ u {i E M +vxh E J
No. of awards passed by Banking Ombudsman during the year
(c) E nx Exi E M +vxh E J / No. of awards implemented during the year
(d) E +i Exi x E M +vxh E J/No. of unimplemented awards at the end of the year

SEi +x {j (B+) /Letters of Comfort (LoCs):


h / Particulars
(a) k E nx V /Issued during the Financial Year

19.

121

/ Current Year
1464.57

2
16
15
3

(< Ec ) / (< In crore)


Mi /Previous Year
1294.90

20.

21.
22.

23.

24.

25.

+EE niB :
ix {j E +xS 12 E G J (I) (VI) l
=Ji B niB G: x/+]x/x
E x{]x E {h, +{ E x{]x, M E M<
, nMi vi+ E i, P]xG + vi
{IE u E M< M { x *
{VMi Ji { x{nx i n E +xxi
VE |vx x E M (+O E x) .
41.84 Ec ({U 38.67 Ec)*
+x|V +i E +iMi vi |vx E Ij E+{
E E +O +xxi +v { P] n M
iE ix {j E +xS 9 lH x +O E
xE E*
E x + E +vx, 1961 E v 36 (1) (viii) E
+x] |Ii . 356.00 Ec E E
lxii E * < , . 239.00 Ec S k
B 117.00 Ec {U k vi *
E x . 285.73 Ec (. 6 |i ) E
|ii E , V E EM x +vx, 1949
E v 53 E ii <E | x E iJ E i
E u V E Vx +vSx E +vvx *
V +E Z M {U E +Ec E {x:i
+l {x:MEi E M *

20. Contingent Liabilities:


Such liabilities as mentioned at Sl. No.(I) to (VI) in
schedule 12 of Balance Sheet are dependent upon the
outcome of court / arbitration / out of court settlement,
disposal of appeals, the amount being called up, terms
of contractual obligations, devolvement and raising of
demand by concerned parties respectively.
21. Estimated amount of contracts remaining to be executed
on capital account and not provided for (Net of advance)
Rs. 41.84 Crores (Previous Year Rs. 38.67 Crores).
22. Sector wise break up of provision held under nonperforming advances is deducted on estimated basis from
gross advances to arrive at the balance of net advances
as stated in the Schedule-9 of the Balance Sheet.
23. The Bank has transferred a total sum of Rs. 356.00 Crore
to Special Reserve in terms of section 36 (1) (viii) of the
income Tax Act, 1961. Of this, Rs. 239.00 Crore pertains
to the current financial year and Rs. 117.00 Crore to the
previous financial year.
24.

Bank has proposed dividend of Rs. 285.73 Crore (Rs. 6


per share), which is subject to notification to be issued to
this effect by the Govt. Of India under section 53 Banking
Regulation Act, 1949.

25.

Figures of previous year have been regrouped or


reclassified wherever considered necessary.

122

J{IE E {]

AUDITORS REPORT

To

i E ]{i
1. x <n E E 31 S, 2011 E {i E ix
{j, = iJ E Mx B x J il xEn |
h E J{I E * =H k h xxEi
Ji EB MB :
i)
ii)
iii)
iv)

1. We have audited the attached Balance Sheet of


ALLAHABAD BANK as at 31st March 2011, the Profit and
Loss Account and the Cash Flow Statement for the year
ended on that date annexed thereto. Incorporated in the
said financial statements are the accounts of :

u J{Ii 20 JB B 46 b E;
+x J{IE u J{Ii 1970 JB;
lx J{IE u J{Ii BE n J
Sx BE +J{Ii |ixv E B 424 JB
VxE h E J |vE u |hi E Vx
* <x +J{Ii J+ 1.07% +O, 4.37%
V, 0.64% V + + 3.80% V xi *

2. u J{Ii il +x J{IE u J{Ii


J+ E Sx E u i V E E nxn E
+x E M *
3. <x k h E Vn E |vx E *
=kni J{I E +v { <x k h
{ +{x +i H Ex *
4. x +{x J{I xi: i Ei J{I
xnb E +x E * =x xE E +{I E <
v =Si +x |{i Ex i J{I E E C
k h iiE +r h H * J{I
{Ih +v {, E |E] Ex I E VS
il k h |E]Eh E VS Ex *
J{I , |H J ri E Ex + |vx u
EB MB i{h +Ex i O k h E
|iiEh E Ex i *
5. E J{I +i E `
+v *
6. n EB x , +xS 18 E x] .
16.3.5 E + vx+Ei Ei V VxE Ij E
E E ES i {x E{ {x: Jx { i
W E u +{x nxE 09.02.2011 E {{j .
b+b.{. / 80/21.04.018/2010-11 E v
|nx E M< U] E +x BB 15 ES E |vx
E VxE E { M Ex v . 598.16
Ec iE E r E Eh {x ni B OS] ni
+lMi EB Vx E i *
7. il k Sx B nB MB {]Eh
E +x il E E lni :
(i)

The President of India

i)

20 Branches and 46 Zonal offices audited by us ;

ii) 1970 Branches audited by other auditors ;


iii) One overseas branch audited by local auditor;
iv) One unaudited representative office in China and 424
un-audited branches, the returns of which are certified
by the Branch Managers. The unaudited branches
account for 1.07% of advances, 4.37% of deposit,
0.64% of interest income and 3.80% of interest
expenses.
2. 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.
3. These financial statements are the responsibility of the
Banks Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
4. We conducted our audit in accordance with the 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 from 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 the management,
as well as evaluating the overall presentation of financial
statement.
5. We believe that our audit provides a reasonable basis for
our opinion.
6. Without qualifying our opinion, we draw attention to note
no. 16.3.5 of schedule 18 which describes deferment of
pension liability and gratuity liability due to increase in
ceiling to the extent of Rs598.16 crores pursuant to the
exemption granted by the Reserve Bank of India to the
public sector Banks from application of the provisions of
AS 15, Employees Benefits vide its circular No
DBOD.BP.BC/80/21.04.018/2010-11 dated February 9th ,
2011, on reopening of Pension option to employees of
public sector Banks.
7. In our opinion and to the best of our information and
according to the explanations given to us and as shown by
the books of the Bank:

i{h J xi + =x { ]{{h E l {`i


ix{j {h B =Si ix{j V +E h
nB MB il i xi Ei J ri
E +x{ =Si fM i E M iE E E
123

(i) The Balance Sheet read with the Significant Accounting


Policies and Notes thereon, is a full and fair Balance
Sheet containing all the necessary particulars and is
properly drawn up so as to exhibit a true and fair view

(ii)

(iii)

31 S, 2011 E EEV E B =Si U |ii


E E*

of the state of affairs of the Bank as at 31st March 2011


in conformity with accounting principles generally
accepted in India.

i{h J xi + =x { ]{{h E l {`i


B x J i xi Ei J ri
E +x{ vi i E ni *

(ii) The Profit and Loss Account read with Significant


Accounting Policies and Notes thereon shows a true
balance of Profit for the year ended on that date in
conformity with accounting principles generally
accepted in India.

xEn | h, h u = iJ E {i
i xEn | E B =Si U |ii Ei *

8. ix {j il B x J EM x +vx
1949 E ii +xS E G: E il J i
EB MB *
9. ={H {O 1 =Ji J{I E + E
+v { B EE E{x (={G E +Vx B +ih)
+vx, 1970 u l +{Ii il = |E] + E
+vx x] J 2(i), 2(ii) + 2(iii) (+xS-18) E
+x +i J Ji |] E x/vx
+ E il x] Ji +i E x + vx E
v ;
{] Ei E:
(E) x SxB B {]Eh |{i EB V
k VxE B E +x J{I
E |Vxl +E l il x =x iVxE {
*
(J) VxE +B E E xnx E E +vE E
+iMi *
(M) E E E il J+ |{i h
J{I E B {{i {< M< *
10. ix {j, -x J + xEn |
h |V J xE E +x{ *

(iii) The Cash Flow Statement gives a true and fair view of
the cash flows for the year ended on that date.
8. The Balance Sheet and the Profit and Loss Account have
been drawn up in Form 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 above and as required by the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970, and
also subject to the limitations of disclosure required therein
and subject to Notes No.2 (i), 2(ii) & 2(iii) (Schedule 18)
regarding balancing / reconciliation of unmatched entries
in inter branch accounts and balancing/ reconciliation of
Balances with Banks and NOSTRO accounts;
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
the same 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 purpose of
our audit.
10. In our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement comply with the applicable
accounting standards.

Ei . ni E {J Bb E.
xn JE
+<B+< {VEh J 110512W

Ei . {.B. Bb BB]
xn JE
+<B+< {VEh J

For M/S SUDIT K PAREKH & CO.


Chartered Accountants
Firm ICAI Regn. No 110512W

For M/S P.A. & ASSOCIATES


Chartered Accountants
Firm ICAI Regn. No. 313085E

For M/S M.R. NARAIN & CO.


Chartered Accountants
Firm ICAI Regn. No. 002330S

(Exi V)
vtxolh
ni . 39461

(n{ E +O)
vtxolh
ni . 55420

(B.Bx. E]x)
vtxolh
ni . 22993

(Srikant Jilla)
Partner
Membership No. 39461

(Dilip Kumar Agarwalla)


Partner
Membership No. 55420

(M. N. Venkatesan)
Partner
Membership No 22993

For M/S S. GHOSE & CO


Chartered Accountants
Firm ICAI Regn. No 302184 E

For M/S K. M. AGARWAL & Co


Chartered Accountants
Firm ICAI Regn. No 853 N

For M/S M.C. Jain & Co


Chartered Accountants
Firm ICAI Regn. No 304012E

(Snx S]]{v)
vtxolh
ni . 51254

(. {. )
vtxolh
ni . 073009

(E E. {])
vtxolh
ni . 056623

(Chandan Chattopodhay)
Partner
Membership No. 51254

(C.P. Mishra)
Partner
Membership No.073009

(Mukesh Kr. Patawari)


Partner
Membership No.056623

Ei . B.P Bb E{x
xn JE
+<B+< {VEh J

302184 E

313085E

Ei . fuU.Yb. yd{Jtt Bb E{x


xn JE
+<B+< {VEh J 853 N

lx / Place : EEi / Kolkata


nxE / Date : 2nd May, 2011

124

Ei . B.+. xh Bb E.
xn JE
+<B+< {VEh J 002330S

Ei . B.. Vx Bb E.
xn JE
+<B+< {VEh J

304012E

< n E
ALLAHABAD BANK

31 S, 2011 E lli Ei ix-{j


Consolidated Balance Sheet as on 31st March, 2011

(< Ec ) (< In Crores)

+xS

lliAS ON

SCHEDULE

31.03.2011

AS ON
31.03.2010

1
2
2A
3
4
5

476.22
8,257.21
1,31,882.16
6,918.18
4,074.15
151,607.92

446.70
6,517.27
1,06,050.74
5,435.48
3,503.92
121,954.11

Cash and Balances with Reserve Bank of India

7,901.34

7,183.85

Balances with Banks and Money at Call and Short Notice


xvx / Investments

7
8

3,139.89
43,500.45

1,999.00
38,637.57

93,625.85

71,608.15

PARTICULARS

{V + niB / CAPITAL & LIABILITIES


{V /Capital
|Ii B +v /Reserves & Surplus
+{JE i /Minorities Interest
V/Deposits
=v /Borrowings
+x niB + |vx /Other Liabilities and Provisions
E / TOTAL
+i /ASSETS
i W E xEn +
E + M il +{ Sx { n vx
@h B +O /Loans & Advances
l +i /Fixed Assets
+x +i /Other Assets
Ex { J / Goodwill on Consolidation
B x Ji E x

10

1,160.17

1,131.35

11

2,280.22

1,394.19

NIL

NIL

NIL
151,607.92

NIL
121,954.11

56,394.48

49,080.79

3,984.60

2,944.37

Debit Balance of Profit and Loss A/C


E /TOTAL

+EE niB / Contingent Liabilities


Oh E B / Bills for Collection
Wvh mk=rCo; ylwmqragt tuFu fUt +z ykd /

lli

12

The Schedules referred to above form an integral part of the Accounts.


xnE / Directors:
B / Sh. S Ramaswamy
i Ei J / Smt Sukriti Likhi
+ B Sin /Sh. R M Chaturvedi
b. E =W-Vx +

su. ve. =qyt

+vI B |v xnE
J. P. DUA
Chairman & Managing
Director

Dr. Shakeel-Uz-Zaman Ansari


M n / Sh. Gour Das
=uJuJh fwUbth E{ / Sh. Deveswar Kumar Kapila
b. Jkm; ctcqhtJ EVM / Dr. Vasant Baburao Kaujalgi
n{ Sv / Sh. Sudip Chaudhuri

b. E

B. +. xE

E{E xnE

E{E xnE

(D. SARKAR)
Executive Director

(M. R. NAYAK)
Executive Director

E |vE (k B J)

A. B. Bhattacharjee
General Manager
(Finance & Accounts
and CFO)

(S. L. JAIN)
Assistant General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date


Ei ni E {J Bb E./
For Sudit K Parekh & Co.
xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 110512 W

Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No:313085 E

xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

(n{ E +O)

(Exi V ) (Srikant Jilla)


{]x / Partner
ni ./ Membership No.-39461

lx / Place: EEi / Kolkata


nxE / Date: 2nd May,2011

B. B. Vx

Y. ce. Ctatgo

|vE (k B J B B+)

Ei B P Bb E.

Ei E. B. +O Bb E.

For S. Ghose & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 302184 E

For K. M. Agarwal & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 0853 N

(Sxnx S]]{v) (Chandan Chattopadhay)


{]x / Partner
ni ./ Membership No.-51254

{]x /Partner
ni ./ Membership No.-073009

125

(. {. )
(C. P. Mishra)

For M. R. Narain & Co.

Ei B. . Vx Bb E.
For M. C. Jain & Co.

xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 304012 E
(E E {])
(Mukesh Ku Patawari)
{]x /Partner
ni ./ Membership No.-056623

< n E
ALLAHABAD BANK

31 S, 2011 E {i nu;w mburfU; x J

Consolidated Profit & Loss Account for the year ended 31st March, 2011

+xS

PARTICULARS
I.

II.

xi

SCHEDULES

+ /INCOME
+Vi V / Interest Earned
+x + / Other Income
E / TOTAL
/ EXPENDITURE
E M V / Interest Expended
{Sx / Operating Expenses
|vx + +EE /Provisions & Contingencies
E / TOTAL
+xM +/x E +

/ Year ended
31.03.2011

(< Ec ) (< In Crores)


xi / Year ended
31.03.2010

13
14

11,082.53
1,363.97
12,446.50

8,377.18
1,539.96
9,917.14

15
16

6,991.60
2,406.88
1,634.22
11,032.70

5,718.16
1,653.89
1,344.38
8,716.43

25.73

27.75

Consolidated Net profit/(loss)


for the year before deducting Minorities Interest
P]B : +{JE V / Less: Minorities Interest

1,439.53
-

1,228.46
-

Consolidated profit/(loss) for the year attributable to the group

1,439.53

1,228.46

261.77
1,701.30
360.00
746.59

217.72
1,446.18

332.08

287.44

262.63
1,701.30
32.22

261.77
1,446.18
27.50

Share of earnings/loss in Associates

+{JE V P]x { E Ei x /(x)

r i Ei /(x) /

Vc: r Ei /(x) +Oxi

Add: Brought forward consolidated profit/(loss)


attributable to the group
E / TOTAL
III. xVx /APPROPRIATIONS
mtkrJr"f |Ii E +ih / Transfer to Statutory Reserves
+x |Ii E +ih / Transfer to Other Reserves
yk;rhb / |ii (tCtkN vh fUh mrn;)
Interim / Proposed Dividend (Including Tax on Dividend)

Ei ix {j +Oxi

Balance carried over to consolidated Balance Sheet


E /TOTAL
|i +Vx /Earnings per Share

Wvh mk=rCo; ylwmqragt tuFu fUt +z ykd /

The Schedules referred to above form an integral part of the Accounts.


xnE / Directors:
b. E
su. ve. =qyt
E{E xnE
B / Sh. S Ramaswamy
+vI B |v xnE
(D. SARKAR)
i Ei J / Smt Sukriti Likhi
J. P. DUA
Executive Director
Chairman & Managing
+ B Sin /Sh. R M Chaturvedi
Director
b. E =W-Vx +
Dr. Shakeel-Uz-Zaman Ansari
M n / Sh. Gour Das
=uJuJh fwUbth E{ / Sh. Deveswar Kumar Kapila
b. Jkm; ctcqhtJ EVM / Dr. Vasant Baburao Kaujalgi
n{ Sv / Sh. Sudip Chaudhuri

(M. R. NAYAK)
Executive Director

B. B. Vx

Y. ce. Ctatgo

|vE (k B J B B+)

E |vE (k B J)

A. B. Bhattacharjee
General Manager
(Finance & Accounts
and CFO)

(S. L. JAIN)
Assistant General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date


Ei ni E {J Bb E./
For Sudit K Parekh & Co.
xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 110512 W

Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No:313085 E

xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

(n{ E +O)

(Exi V ) (Srikant Jilla)


{]x / Partner
ni ./ Membership No.-39461

lx / Place: EEi / Kolkata


nxE / Date: 2nd May,2011

B. +. xE

E{E xnE

305.00
591.97

Ei B P Bb E.

Ei E. B. +O Bb E.

For S. Ghose & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 302184 E

For K. M. Agarwal & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 0853 N

(Sxnx S]]{v) (Chandan Chattopadhay)


{]x / Partner
ni ./ Membership No.-51254

{]x /Partner
ni ./ Membership No.-073009

126

(. {. )
(C. P. Mishra)

For M. R. Narain & Co.

Ei B. . Vx Bb E.
For M. C. Jain & Co.

xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 304012 E
(E E {])
(Mukesh Ku Patawari)
{]x /Partner
ni ./ Membership No.-056623

< n E
ALLAHABAD BANK

Ei xEn | h
Consolidated Cash Flow Statement for the year ending 31st March, 2011

(< Ec )(< in Crore)


h / Particulars

2010-11

2009-10

E. {Sx Miv xEn |


A.

Cash Flow from Operating Activities

E nx +O, xvx +n |{i V


Interest received during the year
from Advances, Investments etc.

11,082.53

+x + / Other Income
P]B: / Less:
E nx V { |nk V /

1,381.71

8,371.95
12,464.24

1,521.71

9,893.66

Interest paid during the year on


Deposits

6,497.70

5,341.86

|vx B +EEi+ i {Sx


Operating Expenses including
Provisions & Contingencies

E
a.

4,041.10

Vc: / Add:
l +i { / Depreciation on Fixed Assets
{Sx Vi xEn
({SxMi +i + ni+ {ix {)

10,538.80

2966.04

8,307.90

66.64

62.78

1,992.08

1,648.54

Cash Profit generated from operations


(prior to changes in operating
assets and liabilities)

J. ni+ r (E)
b.

Increase /( Decrease) in Liabilities

V / Deposits
+x niB B |vx / Other Liabilities & Provisions
M. +i E (r)
c.

25,831.42
525.59

21084.21
26,357.01

342.06

21,426.27

Decrease /( Increase) in Assets

+O / Advances
x / Investments
+x +i / Other Assets
{SxMi Miv x xEn | (E+J+M)

(22,017.70)

(12,805.95)

(4,862.88)

(8,802.31)

(886.05)

(27,766.63)

71.10

(21,537.16)

Net Cash Flow from


Operating Activities (a+b+c)

582.46

1537.65

x Miv xEn |
Cash Flow from Investing Activities

l +i E G/x{]x / Sale/disposal of fixed assets


l +i E G / Purchase of fixed assets

127

2.65

0.94

(98.10)

(72.08)

Ei xEn | h (V...) / Consolidated Cash Flow Statement (Contd.)


h / Particulars
J x Miv x xEn |
B

2010-11

Net Cash Flow from Investing Activities

E E | { V

Share issued at permium to Government


(E i) / Dividends (including tax)
]-ii b E xM B n b /
Issue of Tier-ii Bonds & Perpetual Bonds

k{h Miv Vi rlJ xEn

Net Cash generated from Financing Activities


E n x E xEn | (E+J+M)
Total Cash Flow during the year (A+B+C)

2009-10

(95.45)

k{h Miv xEn |

Cash Flow from Financing Activities


=v / Borrowings
=v { V / Interest on Borrowings

(< Ec )(< in Crore)

(71.14)

1,482.70
(493.90)

486.54
(376.30)

670.00
(287.44)

(130.66)

1100.00
1,371.36

1,079.58

1,858.37

2,546.09

Cash and Balances with RBI

7,183.85

5,115.38

Balances with Banks and Money


at Call and Short Notice
E / Total

1,999.00
9,182.85

1,521.38
6,636.76

7,901.33

7,183.85

3,139.89
11,041.22

1,990.00
9,182.85

1,858.37

2,546.09

E + xEn + xEn i

Cash and Cash equivalent at the


beginning of the year

i W E E vtm xEn il
E + M il +{ Sx { n vx

R
E

E +i xEn + xEn i

Cash and Cash equivalent at the


end of the year

i W E E vtm xEn +
Cash and Balances with RBI

E + M il +{ Sx { n vx
Balances with Banks and Money
at Call and Short Notice
E / Total

E n x E xEn | (R-P)
Total Cash Flow during the year (E-D)
xnE / Directors:
B / Sh. S Ramaswamy
i Ei J / Smt Sukriti Likhi
+ B Sin /Sh. R M Chaturvedi
b. E =W-Vx +

su. ve. =qyt

+vI B |v xnE
J. P. DUA
Chairman & Managing
Director

Dr. Shakeel-Uz-Zaman Ansari


M n / Sh. Gour Das
=uJuJh fwUbth E{ / Sh. Deveswar Kumar Kapila
b. Jkm; ctcqhtJ EVM / Dr. Vasant Baburao Kaujalgi
n{ Sv / Sh. Sudip Chaudhuri

b. E

B. +. xE

E{E xnE

E{E xnE

(D. SARKAR)
Executive Director

(M. R. NAYAK)
Executive Director

E |vE (k B J)

A. B. Bhattacharjee
General Manager
(Finance & Accounts
and CFO)

(S. L. JAIN)
Assistant General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date


Ei ni E {J Bb E./
For Sudit K Parekh & Co.
xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 110512 W

Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No:313085 E

xn JE / Chartered Accountants
+<B+< V. ./ICAI Regd No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

(n{ E +O)

(Exi V ) (Srikant Jilla)


{]x / Partner
ni ./ Membership No.-39461

lx / Place: EEi / Kolkata


nxE / Date: 2nd May,2011

B. B. Vx

Y. ce. Ctatgo

|vE (k B J B B+)

Ei B P Bb E.

Ei E. B. +O Bb E.

For S. Ghose & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 302184 E

For K. M. Agarwal & Co.


xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 0853 N

(Sxnx S]]{v) (Chandan Chattopadhay)


{]x / Partner
ni ./ Membership No.-51254

{]x /Partner
ni ./ Membership No.-073009

128

(. {. )
(C. P. Mishra)

For M. R. Narain & Co.

Ei B. . Vx Bb E.
For M. C. Jain & Co.

xn JE /Chartered Accountants
+<B+< V. ./ICAI Regd No: 304012 E
(E E {])
(Mukesh Ku Patawari)
{]x /Partner
ni ./ Membership No.-056623

+xS

SCHEDULE

lli / As on

31.03.2011
(< Ec )
(< in Crore)

Particulars

lli

/ As on
31.03.2010
(< Ec )
(< in Crore)

+xS 1 - {V
SCHEDULE 1 - CAPITAL

|vEi {V / Authorised Capital


xMi {V (47,62,15,418 |iE . 10)

3,000.00

3,000.00

476.22

446.70

476.22

446.70

476.22

446.70

Issued Capital 47,62,15,418 Shares of Rs.10.each

({U 44,67,00,000 |iE . 10)


(Previous Year 44,67,00,000 Shares of Rs.10.each)

+nk {V (47,62,15,418 |iE . 10)


Subscribed Capital 47,62,15,418 Shares of Rs.10.each

({U 44,67,00,000 |iE . 10)


(Previous Year 44,67,00,000 Shares of Rs.10.each)

M M< {V (47,62,15,418 |iE . 10)


Called-up Capital 47,62,15,418 Shares of Rs.10.each

({U 44,67,00,000 |iE . 10)


(Previous Year 44,67,00,000 Shares of Rs.10.each)

P]B: +nk M / Less: Calls unpaid


Vc: Vi / Add: Forfeited shares
E / Total

476.22

446.70

1,987.39

1,627.39

1,214.93

1,219.96

+xS 2 - |Ii + +v
SCHEDULE 2 - RESERVES & SURPLUS

vE |Ii / Statutory Reserves


{V |Ii / Capital Reserves
Ex { vqse |thrGr;gtk / Capital Reserves on Consolidation
| / Share Premium
V B +x |Ii / Revenue and other Reserves
B x Ji / Balance in Profit and Loss Account
E / Total

70.31

70.31

1,360.48

720.00

3,361.48

2,617.84

262.62

261.77

8,257.21

6,517.27

Minority interest at the date on which the parent subsidiary relationship came into existence

NIL

NIL

{i r / E / Subsequent increase / decrease


ix {j E iJ E +{JE V / Minority interest on the date of Balance Sheet

NIL

NIL

NIL

NIL

+xS 2B - +{JE V
SCHEDULE 2A - MINORITIES INTEREST

-+xM v E +ii +x E il E +{JE V

129

+xS

SCHEDULE

lli / As on

31.03.2011
(< Ec )
(< in Crore)

Particulars

lli

/ As on
31.03.2010
(< Ec )
(< in Crore)

+xS 3 - xI{
SCHEDULE 3 - DEPOSITS

fU/ A. I. M xI{ / Demand Deposits


(I) E / From banks
(ii) +x / From others
II. Si E xI{ / Savings Bank Deposits
III. n xI{ / Term Deposits
(I) E / From banks
(ii) +x / From others
E / Total (I, II, III)
B. (i) i li J+ E xI{ / Deposits of branches in India
(ii) i E li J+ E xI{ / Deposits of branches outside India
E / Total (I and II)

47.90
9,108.12

57.14
8,258.40

35,000.43

28,271.18

812.85

912.93

86,912.86

68,551.09

131,882.16

106,050.74

131,500.99

105,768.64

381.17

282.10

131,882.16

106,050.74

250.00
312.17
131.51

12.84

300.00
1,000.00
2,611.90
2,312.60
6,918.18

300.00
1,000.00
2,711.90
1,410.74
5,435.48

387.12
242.69
544.72
75.86
2,823.76
4,074.15

394.28
185.39
410.07
23.97
2,490.21
3,503.92

356.79

379.95

7,544.55

6,803.90

7,901.34

7,183.85

+xS 4 - =v
SCHEDULE 4 - BORROWINGS
I.

i =v / Borrowings in India
(I) i W E / Reserve Bank of India
(ii) +x E / Other banks
(iii) +x lB B +Eh / Other institutions and agencies
(iv) Mh xx n @h Ji/

Subordinated Innovative Perpetual Debt Instrument.


Mh @h- +{ ]-II {V //Subordinated Debt - Upper Tier II Capital
Mh @h- ]-II {V / Subordinated Debt - Tier II Capital
II. i E =v / Borrowings outside India
E / Total (I and II)
={H I + II i |ii =v
Secured borrowings included in I and II above
(v)
(vi)

+xS 5 - +x niB B |vx


SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I.
II.
III.
VI.
V.

n / Bills payable
+i-Ex Vx (x) / Inter -office adjustments (net)
={Si V / Interest accrued
+lMi E niB / Deferred Tax Liabilities
+x (|vx i) / Others (including provisions)
E / Total

+xS 6 - i W E xEn +
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
I. Ec (n E x] mrn;)/
Cash in hand (including foreign currency notes)

i W E / Balances with Reserve Bank of India


S Ji / In Current Account
(ii) +x Ji / In Other Accounts
E /Total (I & II)

II.
(i)

130

+xS

SCHEDULE

lli / As on

31.03.2011
(< Ec )
(< in Crore)

Particulars

lli

/ As on
31.03.2010
(< Ec )
(< in Crore)

+xS - 7 E +i + M il +{ Sx { n vx
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE

i / In India
(i) E +i / Balances with banks
(a) S Ji / In Current accounts
(b) +x V Ji / In Other Deposit accounts
(ii) M il +{ Sx { n vx / Money at call and short notice
(a) E / With banks
(b) +x lyt / With other institutions
E / Total (i & ii)
II. i E / Outside India
(a) S Ji / In Current account
(b) +x V Ji / In Other Deposit accounts
(c) M il +{ Sx { n vx / Money at call and short notice
E / Total
E M / Grand Total (I & II)

I.

+xS 8 - xvx

SCHEDULE 8 - INVESTMENTS
I. i xvx / Investment in India in
(i) E |ii / Government securities
(ii) +x +xni |ii / Other approved securities
(iii) / Shares
(iv) bS + v {j / Debentures and Bonds
(v) +xrdgt xvx / Investment in Associates
(vi) +x (gwawyt VUzTm gqxeytRo ytr=) / Others (Mutual Funds, UTI etc)
II.

E /Total
i E xvx / Investments outside India in
(i) E |iigtk (lx trvfUhKtuk i)

Government securities (including local authorities)


(ii)

+xrdgt xvx

Investment in Associates
(iii) +x xvx / Other Investments
E /Total
E M / Grand Total (I) & (II)
III. i xvx / Investment in India
(i) xvx E E / Gross value of Investments
(ii) +I i E |vx / Aggregate of Provisions for Depreciation
(iii) x xvx / Net Investment
(iv) i E xvx / Investment outside India
(i) xvx E E / Gross value of Investments
(ii) +I i E |vx / Aggregate of Provisions for Depreciation
(iii) x xvx / Net Investment

131

255.85

341.06

191.72

303.96

942.30

3.71

240.00

1,629.87

648.73

823.26

429.82

686.76

920.45

1,510.02

1,350.27

3,139.89

1,999.00

35,139.73
120.04
445.53
2,395.28
226.38
5,173.49

31,023.12
138.27
474.72
1,649.74
199.57
5,152.15

43,500.45

38,637.57

43,500.45

38,637.57

43,802.01
301.56
43,500.45

38,893.50
255.93
38,637.57

+xS

SCHEDULE

lli / As on

31.03.2011
(< Ec )
(< in Crore)

Particulars

lli

/ As on
31.03.2010
(< Ec )
(< in Crore)

+xS 9 - +O
SCHEDULE 9 - ADVANCES

fU/A. (i) G E MB B xB MB / Bills purchased and discounted


(ii) xEn @h, +bC] + M { |in @h
Cash credits, overdrafts and loans repayable on demand
(iii) n

@h / Term loans

E /Total
J/B. i +i u |ii/ Secured by tangible assets
( @h { +O i) / (includes advances against book debts)
(ii) E/E |ii u Ii /
Covered by Bank/ Government Guarantees
(iii) Vxi / Unsecured

E / Total
M/C. I. i +O / Advances in India
(I) |lEi |{i Ij / Priority sector
(ii) VxE Ij / Public sector
(iii) E / Banks
(iv) +x / Others
E / Total
P/D. II. i E +O / Advances outside India
(I) E =ug / Due from banks
(ii) +x =ug / Due from others
(y/a) Jn + xB MB / Bills purchased & discounted
(yt/b) bE] @h / Syndicated Loans
(R/c) +x / Others
E / Total
E M /Grand Total

+xS 10 - l +i

4,054.35

2,184.15

40,513.97

29,805.32

49,057.53

39,618.68

93,625.85

71,608.15

77,689.18

57,599.15

3,451.45
12,485.22

1,705.80
12,303.20

93,625.85

71,608.15

30,763.73

24,279.35

14,786.64

9,147.86

45,172.50

37,335.29

90,722.87

70,762.50

1,979.10
69.98

373.62
68.04

749.87

334.21

104.03

69.78

2,902.98

845.65

93,625.85

71,608.15

1,002.61
0.81
1.20
72.07
930.15
-

999.93
1.45
65.00
936.38
1.11

658.74
99.40
1.45
529.69

586.87
72.19
0.84
467.90

227.00

190.32

SCHEDULE 10 - FIXED ASSETS

{ / Premises
{i E 31 S fUe r:r; fuU ylwmth Mi {
I.

At cost as on 31st March of the preceding year


E nx {vx / Additions during the year
E nx vwlbqogtkrfU; / Revalued during the year
E nx E]i / Deductions during the year
+V E iJ iE yJGg / Depreciation to date
E / Total I
IA. xhvx { / Premises under construction
II. +x l +i (xS + CS i) /
Other Fixed Assets (including Furniture and Fixtures

{i E 31 S E li E +x Mi {
At cost as on 31st March of the preceding year
E nx {vx / Additions during the year
E nx E]i / Deductions during the year
+V E iJ iE +I / Depreciation to date

E / Total II

132

+xS

SCHEDULE

lli / As on

31.03.2011
(< Ec )
(< in Crore)

Particulars

lli

/ As on
31.03.2010
(< Ec )
(< in Crore)

{]] { n M< +i / Leased Assets


{i E 31 S E li E +x Mi {
IIA.

At cost as on 31st March of the preceding year

7.30

3.23

0.75

0.86

Vx i E nx {vx
Additions during the year including adjustments

|vx i E nx E]i
Deductions during the year including provisions

+V E iJ iE +I / Depreciation to date
E /Total IIIA
E / Total ( I, IA, II & IIA )
III. {V -- |Mi E ({]] { n M< +i) |vx E x
Capital- Work - in - progress ( Leased Assets ) net of Provisions

E / Total ( I, IA, II, IIA & III

+xS 11 - +x +i

0.11

5.16

0.90

2.89

3.08

1,160.04

1,130.89

0.13

0.46

1,160.17

1,131.35

SCHEDULE 11 - OTHER ASSETS


I.
II.
III.
IV.
V.

+i E Vx (x) / Inter-Office Adjustments (net)


={Si V / Interest accrued
+O { nk E/i { E] M E

710.42

495.04

Tax paid in advance/tax deducted at source

386.54

239.41

9.71

8.28

Jx O B ]{ / Stationery and stamps


n E i] |{i E M< M-EE +i
Non-banking assets acquired in satisfaction of claims

VI.
VII.

+lMi E +i / Deferred Tax assets


+x / Others
E /Total

0.03

0.26
1,173.29
2,280.22

0.77
650.66
1,394.19

2,655.05

937.27

0.16

0.16

39,908.56

37,065.89

4,094.71

4,429.34

420.54

446.63

9,273.62

6,162.82

+xS 12 - +EE =ug;tYk


SCHEDULE 12 - CONTINGENT LIABILITIES
I.

E E r n Vx @h E { E x E M
Claims against the bank not acknowledged as debts

II.
III.

+i: nii x E B ni / Liability for partly paid investments


E n x n+ E Eh ni
Liability on account of outstanding forward exchange contracts

IV.

V.

OE E + n M< |ii / Guarantees given on behalf of constituents


(a) i / In India
(b) i E / Outside India
|iOh, {`Ex + +x viB
Acceptances, endorsements and other obligations

VI.

+x n VxE B E +EE { Vn
Other items for which the Bank is contingently liable

E /Total
Oh i

/ Bill for collection

133

41.84

38.68

56,394.48
3,984.60

49,080.79
2,944.37

+xS

SCHEDULE

{i / Year Ended

h
Particulars

31.03.2011
(< Ec )
(< in Crore)

{i /Year Ended
31.03.2010

(< Ec )
(< in Crore)

+xS 13 - +Vi V B
SCHEDULE 13 - INTEREST AND DIVIDENDS EARNED
I.
II.
III.

+O/ { V/]] / Interest/discount on advances/bills


x { + / Income on investments
i W E +i + +x +i-E xv { V
Interest on balances with Reserve Bank of India and other inter-bank funds

IV.

+x / Others
E /Total

8,274.18

6,398.47

2,679.45

1,951.22

54.74

25.17

74.16

2.32

11,082.53

8,377.18

778.95

649.97

0.30

0.03

(0.04)

(0.59)

+xS 14 - +x +
SCHEDULE 14 - OTHER INCOME
I.
II.

Ex, x + n / Commission, exchange and brokerage


, x il +x +i E G {
Profit on sale of land, buildings and other assets

P]B: , x il +x +i E G { x
Less: Loss on sale of land, buildings and other assets
III.
IV.
V.
VI.

VII.

x xnx { / Profit on exchange transactions


84.30
P]B: x xnx { x / Less: Loss on exchange transactions
(11.27)
xvx (x) fUu G { / Profit on sale of investments(net)
166.16
P]B: xvx E G x / Less: Loss on sale of investments
(0.24)
xvx E {xEx { / Profit on revaluation of investments
P]B : xvx E {xEx { x/ Less: Loss on revaluation of investments (1.44)
a) {]]-k + / Lease finance income
b) {]] |vx E / Lease management fee
c) +in | / Overdue charges
d) {]] E |{ vh V / Interest on lease rent receivables
v + / Miscellaneous income
347.25
E / Total
1,363.97

58.13
(9.64)
765.52
(186.79)
(0.01)
263.34
1,539.96

+xS 15 - E M V
SCHEDULE 15 - INTEREST EXPENDED
I.
II.

V { V / Interest on deposits
i W E/+i-E =v { V

6,497.70

Interest on Reserve Bank of India/ inter-bank borrowings


III.

+x /Others
E / Total

134

5,341.86

48.21

39.73

445.69

336.57

6,991.60

5,718.16

+xS

SCHEDULE

{i / Year Ended

h
Particulars

31.03.2011
(< Ec )
(< in Crore)

{i /Year Ended
31.03.2010

(< Ec )
(< in Crore)

+xS 16 - {Sx
SCHEDULE 16 - OPERATING EXPENSES
I.

ES E Mix il =xE B |vx


Payments to and provisions for employees

II.
III.
IV.
V.

c, E B x / Rent, taxes and lighting


ph + Jx O / Printing and stationery
Y{x + |S / Advertisement and publicity
(E) {]] +ik <i E E {{k { +I
(a) Depreciation on Banks property other than Leased Assets

V.

(J) {]]

VII.

xnE E , k + / Directors fees, allowances and expenses


J{IE E + / Auditors fees and expenses
(J J{IE E + i)
(including branch auditors fees and expenses)

VIII.
IX.
X.
XI.
XII.
XIII.

1,020.82

201.97

179.73

22.02

21.47

35.85

24.65

66.64

65.14

+i { +I/

(b) Depreciation on Leased Assets


VI.

1,558.97

v | / Law charges
bE, i, ]x +n / Postage, telegrams, telephones, etc.
i + +xIh / Repairs and maintenance
/ Insurance
J E {vx, n E< / Amortisation of Goodwill, if any
+x / Other expenditure
E /Total

1.32

1.05

17.94

16.16

13.70

11.77

24.52

23.70

41.33

25.11

93.34

75.93

329.28

188.36

2,406.88

1,653.89

+xS 17 - + E +
SCHEDULE 17 - Share of Earnings

+xM x / Loss in Associates


+xM E / Details of Associates

x / Name
n Oh E / Sharda Gramin Bank
FlQ Ij Oh E / Lucknow Kshetriya Gramin Bank
jh Ij Oh E / Triveni Kshetriya Gramin Bank
<n { Oh E / Allahabad UP Gramin Bank
E / TOTAL
Rttntct= cfU fUt ykN / Allahabad Banks share
{U vi Vx / Adjustment relating to earlier years
E nx Vi / Considered during the year

135

9.02

7.37

36.03

20.69

70.20

13.82

79.22

77.91

27.72

27.27

(1.99)

0.48

25.73

27.75

Ei J+ vi |ME
J J xi

RELEVANT PRINCIPAL ACCOUNTING POLICIES


ON THE CONSOLIDATED ACCOUNTS

1. x
(E) k h, V +xl =Ji x , J E {{Mi
Mi {{] B ={Si +v { il vE |vx
B xi: E J ri E +x{ x +
|ii E M *
(J) k h + +Yx, +i MEh, |vxEh
il +x vi - { V i V
E (++<) E n xn E {] Ei * i
xn JE lx u V J xE B =nPh
B i EM =tM |Si J *
2. Ex |G:
(i) E, <E +xM + BB] E Ei k h,
i xn JE lx u V J xE, vi
xE |vE u V xnxn + xi
Ei J ri B i |Si xi V iE
+xl =Ji x +x{x Ex E +x i{h
{+ E l i EB MB *
(ii)

xxJi +xM E J xE 21 Ei k h
E +x Ei E M :

1.

Basis of Accounting:

(i)

The financial statements have been prepared under the


historical cost convention and accrual basis of accounting,
unless otherwise stated and are in conformity with the
statutory provisions and generally accepted accounting
principles.

(ii) The financial statements also conform to the guidelines


issued by the Reserve Bank of India (RBI) from time to
time in respect of income recognition, asset classification,
provisioning and other related matters. Accounting
standard and pronouncement issued by the Institute of
Chartered Accountants of India and accounting practices
prevalent in the Banking Industry in India.
2.

Consolidation procedure:

(i)

The Consolidated financial statements of the Bank, its


subsidiary and its associates have been prepared to
comply, in all material aspects, in accordance with the
Accounting standards issued by the Institute of Chartered
Accountants of India, guidelines issued by the respective
regulatory authorities and generally accepted accounting
principles and policies prevailing in India except otherwise
stated.

(ii) The following subsidiary has been consolidated as per


the Accounting Standard 21, Consolidated Financial
Statements

E{x E x

n /x

Name of the Company

Country / Residence

Relationship

+ E <x ]b

+xM

AllBank Finance Limited

India

Subsidiary

(iii)

xxJi BB] + H =t i xn JE
lx u V J xE 23 Ei k h
BB] x E J B J xE 27, H
=t i E k {]M E +x Ei EB
MB *

i i
Ownership Interest
100%
100%

(iii) The following associates and Joint ventures have been


consolidated as per the Accounting Standard 23,
Accounting for Investments in Associates in Consolidated
Financial Statements and Accounting Standard 27,
Financial Reporting of Interest in Joint Ventures issued
by the Institute of Chartered Accountants of India
respectively:

l E x

n/x

i i

Name of the Entity

Country / Residence

Relationship

Ownership Interest

n Oh E

|Vi E

Sharda Gramin Bank

India

Sponsor Bank

<n { Oh E

|Vi E

Allahabad UP Gramin Bank.

India

Sponsor Bank

x { Vx < E{x ]b

BB]

India

Joint Venture

Universal Sompo General Insurance


Company Ltd.

BB+< (<b)

ASREC (India) Ltd.

India

35%
35%

30%

mkgw; Wb
Joint Venture

136

27.04 %

3. i{h J xi E |E]Eh
=Ji EM xi Ji: E l vi * E E BE
+xM V V C * S] E E { {VEi +
BE BB] E{x V M-Vx M *
+xM + BB] E{x =xE xE u xvi
J xi E {x Ei * <x +M xn] x E
M CE Oi: k h E {|I x i{h
x *

3.

4. n p r x-nx :
4.1 i JB / E
(i) n J+ E IIxx-<]O x +{xII E {
MEi E M ni il =xE k h E xxx
|ni E M ni*
l
pE B M-pE +i B niB il +EE niB
x BCSV b BBx + <b (b<) u
|iE i E {i { n Vx +i {] n {*

4.

(ii)

l
(iii)

Disclosure of significant accounting policies

The accounting policies mentioned primarily relate to the Bank


entity. The Bank has a subsidiary which is registered with the
SEBI as a Class I Merchant Banker and one Joint Venture
Company is in the business of non-life insurance. The
subsidiary and Joint Venture Companies follow accounting
polices prescribed by their governing regulators. These have
not been specified separately as these investments are not
material in the context of the overall financial statements.
Transactions involving Foreign Exchange:

4.1 Branches / Offices outside India


(i)

Foreign Branches are classified as Non-integral Foreign


Operations and their financial statements are translated
as follows:

Both monetary and non-monetary Assets and Liabilities


as well as Contingent Liabilities at the closing spot rates
notified by the Foreign Exchange Dealers Association of
India (FEDAI) at the end of each quarter.

Revenue items are translated at the quarterly average


closing rate notified by FEDAI at the end of respective
quarter.

All resulting exchange difference is accumulated in a


separate account Foreign Currency Translation Reserve.

(ii)

Operations of representative offices abroad are classified


as Integral Foreign Operations and their financial
statements are accounted for as follows:

All monetary Assets and Liabilities, Guarantees,


Acceptances, Endorsements and other obligations are
translated to Indian rupee equivalent at the spot exchange
rates prevailing at the end of each quarter as per FEDAI
guidelines.

Non-monetary items are translated at exchange rate


prevailing on the date of transaction.

Revenue items are accounted for at the exchange rates


prevailing on the date of transaction.

{h x +i E -x tuJ M *

All resulting exchange differences are accounted for in


Profit & Loss Account.

+O E i E |Si h E +iMi MEi


E VBM* +O E v |vx lx v +{I+
+l ..E E xE, V +vE , E +x E
VBM*

(iii) Advances will be classified under categories in line with


those of Indian Offices. Provisions in respect of advances
will be made as per the local law requirements or as per
the norms of RBI, whichever is higher.

V n b< u vi i E {i { +vSi
i +i +i n { {ii E Vi *
{h x +i E BE +M Ji n p
]x V J Vi *
n li |ixv E E {Sx E II<]O x
+{xII E { MEi E M il =xE k
h E Mhx xxx E Vi :
pE +i B niB, M], Ei, {Ex il
+x |iriB b< E nxnx |iE i E +i
|Si {] x n { i { +E Vi *
M-pE n xnx E il { |Si x n { +E
Vi *
V n E Mhx xnx E il { |Si x n
{ E Vi *

4.2 i JB
(i) n p S +i +l ni (BBx+ Vx,
<<B Vx, +B Vx +n E +xiMi Oi
V i) il E n x n E
i n p { P (B<bB+<) u l Si
i yk; E n { {ii E M *

4.2 Branches in India


(i)

137

Foreign currency balances whether of assets or liabilities


[including deposits mobilized under FCNR Scheme,
EEFC Scheme, RFC Scheme etc.] and outstanding
forward exchange contracts are converted at quarter end
rates as advised by Foreign Exchange Dealers
Association of India (FEDAI).

n x n E {xEx { {h /x il
x] Ji B < b B +< E nxn E +x V B
MB *
(ii) n p vi + + E n E xnx E
iJ E |Si x n E |M E {ii E
Vi *
(iii) Ei, {XEx + M] i +x ni E
|iE i E +i b< u Si |Si n { +E
Vi *
5. x
(i) E E x E i V E E nxn E +x
ix |M l '{{Ci iE vi', '{ i vi',
'G i ={v' il MEi E Vi *
(ii) =Ci ix h E +xiMi x E |E]Eh E +M
xxJi U MEi E Vi :
(1) E |ii,
(2) +x +xni |ii,
(3) ,
(4) bS B b,
(5) +xM l+/H =t il
(6) +x
(iii)

(iv)

(E) x V E {{Ci iE vi Ex Si , E
{{Ci iE vi E { MEi E i *
(J) x V G E il 90 nx i {
{xG i vi E Vi , E { i vi E
{ MEi E Vi *
(M) x V =Ci nx h MEi x , E G
i ={v E { MEi E Vi *
(P) x E G E = {{Ci iE vi,
i vi +l G E B ={v E { MEi
E Vi B h ii{Si E }]M xE
nxn E +x{ E Vi *
(R) +xME, Ci =t il M x E
{{Ci i vi E { MEi E Vi *
{{Ci i J M E +iMi MEi (Ij Oh E
E +) x +vOh Mi { B MB * +M +vOh
Mi +Ei +vE i i +iH E
{{Ci E +v { {vi E Vi YJk rlltuU
fuU rY tJ"tl rfUgt st;t ni*
bxS / b E E V +O E { Z Vi
+i MEh E E E{h xnb il +O
i |V |vxEh E |M Ei B*

The resultant profit/loss on revaluation of forward


exchange contracts and NOSTRO accounts is taken to
revenue as per FEDAI guidelines.
(ii)

(iii) Acceptances, endorsements and other obligations


including guarantees are stated at FEDAI advised rates
prevailing at the end of each quarter.
5.

Investments:

(i)

Investments are classified in accordance with RBI


guidelines under three categories viz. Held to Maturity,
Held for Trading and Available for Sale.

(ii)

Under the above three categories, Investments are further


classified into the following six groups :

1.

Government Securities,

2.

Other Approved Securities,

3.

Shares,

4.

Debentures & Bonds,

5.

Subsidiaries/ Joint Ventures and

6.

Others

(iii) a) Investments that the Bank intends to hold till maturity


are classified as Held to Maturity.
b) Investments that are held principally for resale within
90 days from the date of purchase are classified as Held
for Trading.
c) Investments, which are not classified in the above two
categories, are classified as Available for sale.
d) An investment is classified as Held to Maturity, Held
for Trading or Available for sale at the time of its purchase
and subsequent shifting amongst categories is done in
conformity with regulatory guidelines.
e) Investments in subsidiaries, joint ventures and
associates are classified as Held to Maturity.
(iv) Investments classified as Held to Maturity (other than in
Regional Rural Banks) are carried at acquisition cost. In
case the acquisition cost is higher than the face value,
the excess is amortized over the period remaining to
maturity and provision is made for:
Depreciation in the value of debentures / bonds which
are deemed to be in the nature of advances by applying
the RBI prudential norms of asset classification and
provisioning applicable to advances.

+xM / H =t x E +l E UcE
tm>
(v) {

i J M E { MEi x E E
+i { G{ {xEx E Vi il {h

Income and Expenditure items relating to foreign currency


are converted using the exchange rate prevailing as on
the date of transaction.

Diminution, other than temporary, in the value of


investments in subsidiaries / joint ventures.
(v)

138

Investments classified as Held for Trading are revalued


scrip-wise at monthly interval and resultant net

x E {Sx E Vi B x +vx,
n E< , E |iE MEh E +iMi vx x J
Vi* +M-+M G{ E >{ l=Ji
{xEx E l x ni *
(vi) G i ={v E { MEi x E i +i
{ E] G{ +Ei E Vi il {h x
E {Sx E Vi + x +vx, n
E< , E |iE MEh E +iMi vx x J Vi*
+M-+M G{ E >{ l=Ji {xEx
E l x ni *
(vii) Ij Oh E x E xvh vi Mi E
{ E Vi *
(viii) +xi{nE |ii (V V / 90 nx +vE E
B E ) Ev + E {Sx x E Vi il
|ii E i +i MEh E E{h
xnb E |M Ei B ={H |vx EB Vi il
B E +x =i{nE |ii vi +vx
Ii{i x E Vi*
(ix)

(x)

(xi)

x E +vOh E Mi:
l
+nk |ii E |{i |ix / Ex
il |E E E x *
l
Ex, n, |ii xnx E il ]{ b] E
UcE*
-x tuJ x E G { -x E {Sx E
Vi * {{Ci nu;w J B M E ii x E G
{ E E E { -x Ji
Vi il ii{Si {V tIi Ji xM E
Vi *
x E V E {i Mx E B, ]E BCSV
E]x +l B.+<.B.B.b.B. / {.b.B.+<. u n
M< n E +{x Vi * < |E E E]x / n E
+ B.+<.B.B.b.B / {.b.B.+<. u lxvi
I{{Ci vh |iI E mbwra; |M Ei B V n
E {i M Vi *

E E r=Ntrl=uNo t fuU +x z h E i{ E
xxx E Vi :
V i{
V n {, V V +i + ni+ E S Ei
, E = +i +l ni i xq] { E UcE V
k rhg V { +l Mi V
E { Vi , ={Si +v { Vi
*
{ E xx x +l x E { E nMi
+v +l +i / ni+ E +v E { +Yi
E Vi *
(xii)

]bM {
]bM { x-nx E k rhg nV {ix E l
W Sxi E Vi *

depreciation is recognized and net appreciation, if any,


is ignored under each classification. The book value of
the individual scrip is not changed with the revaluation
as indicated above.
(vi) Investments classified as Available for Sale are marked
to market scrip-wise at quarterly intervals and resultant
net depreciation is recognized and net appreciation, if
any, is ignored under each classification. The book value
of the individual scrip is not changed with the revaluation
as indicated above.
(vii) Investments in Regional Rural Banks are valued at
carrying cost.
(viii) In respect of non-performing securities (where interest/
principal is in arrears for more than 90 days) income is
not recognized and appropriate provision is made for
depreciation in the value of the securities by applying
prudential norms of asset classification and such
depreciation is not set-off against the appreciation in
respect of other performing securities.
(ix) Cost of acquisition of investments:
l

is net of incentives/commission and front-end fees


received in case of securities subscribed, and

excludes commission, brokerage, securities transaction


tax and stamp duty.

(x)

Profit/loss on sale of investments is recognized in the


Profit and Loss Account. An amount equivalent to the
profit on sale of investments under Held to Maturity
category is first taken to the Profit and Loss Account and
thereafter, appropriated to the Capital Reserve Account.

(xi) For the purpose of determining market value of


investments, Stock exchange quotations or rates put up
by FIMMDA/PDAI are adopted. In absence of such
quotations/rates, the market value is determined by
applying appropriate Yield to Maturity rates as prescribed
by FIMMDA / PDAI or as per norms laid down by the
Reserve Bank of India.
(xii) As per RBI guidelines, the different categories of Swaps
are valued as under:

Hedge Swaps

Interest rate swaps which hedges interest bearing assets or


liabilities are accounted for on accrual basis except the Swaps
designated with an assets or liability that is carried at market
value or lower of cost or market value in the financial
statements.
Gains or Losses on the termination of Swaps are recognized
over the shorter of the remaining contractual life of the Swap
or the remaining life of the assets / liabilities.

Trading Swaps

Trading Swap transactions are marked to market with changes


recorded in the financial statements.

139

6. +O :
(i) ..E u l-xvi nxn E +x +i E
+VE il +xVE E { MEi E M il Wn
+xVE +O i |vx E x { nJ M *
(ii) il{ ..E E nxn E +x xE +O (=i{nE)
i EB MB |vx E +x niB B |vx
E M *
7. l +i /
(i)

{h i il {]] { B MB { i +x +S
+i E {{Mi Mi i< M< , Ei{ { E Uc E
VxE {xEx i< M< * {xx i +i E
Sx |hr {ri E +v { E Vi * {xx {{i
xx E Vi iE < |E |{i E + ix
{j E il { V Vn +i x * E E EU
{ E =Si lE =i-Sf nJ Vi * +iB,
- x E +Ei E Vi * il{, {
E =x n i {xx - x E Vi, VxE =Si
E +i{h {ix i *

(ii) +x

+i E +xiMi xh +v E nx B MB
{VMi E E M *

E{x +vx, 1956 E +xS XIV xvi n {


P]i |h E +x E |vx E M ,
BB{B B E{] vi x E, V
.. E E nxn E +x 33.33% E n { v
J {ri E |vx EM*
(iv) {xEi +i E v , vwlbqogtkfUl fuU VJv
+iH E fUtu vwlbqogtkfUl +Ii x Ji +xii E M< *
(v) {]] { erbgb fUt vrhNtu"l {]] E +v ;fU
E M *
(vi) n J E l +i { E |vx = n
|Si |V Exx E +x E M *
(iii)

6.

Advances:

(i)

Advances are classified as performing and nonperforming as per guidelines prescribed by RBI and are
shown net of provisions for non-performing advances.

(ii) The provision made for standard advances (performing)


in terms of RBI guidelines is however included in Other
Liabilities and Provisions.
7.

Fixed Assets and Depreciation

(i)

Premises including Freehold and other Fixed Assets are


stated at historical cost except certain Premises, which
are stated at their revalued amount. Selection of assets
for revaluation is based on a systematic basis.
Revaluation is made with sufficient regularity to ensure
that the carrying amount does not differ materially from
the market value at the Balance Sheet date. Some of the
premises of the Bank experience significant and volatile
changes in fair value, thus necessitating frequent
valuation. However, such frequent valuation is not done
for items of premises with only insignificant changes in
fair value.

(ii)

Capital expenditure incurred during construction period


is included under Other Assets.

(iii) Depreciation is provided on diminishing balance method


at the rates prescribed in Schedule XIV to the Companies
Act, 1956 except that in respect of ALPMs & Computers,
where depreciation is provided on straight line method
@ 33.33% as per RBI guidelines.
(iv) In respect of revalued assets, the amount of additional
depreciation consequent to revaluation is transferred from
Revaluation Reserve to the Profit & Loss Account.
(v)

Premium on leasehold land is amortized over the period


of the lease.

(vi) Depreciation on Fixed Assets of foreign branches is


provided as per the applicable laws prevalent in that country.

8. +MS +i (E{] }])


(i) E{] i }] V = }] E x x S
V Ei vi b E BE +MS + il = +S
+i Z M * V }] vi b E +z M
x , E{] }] E +MS +i Z M *

8.

Intangible Assets (Computer Software)

(i)

Software for a computer that cannot operate without that


specific software is an intangible part of related hardware
and is treated as fixed assets. Where the software is not
an integral part of the related hardware, Computer
software is recognised as an Intangible Asset.

Gi B MB E{] }] E E i +MS
+i E { Z M , V }] E / Mi
. 10 J +vE * Yume ydtuah ytr;gt fUt vrhNtu"l
10 JMo fUe yr"fU;b yJr" fuU yg"el, WmfUe CtJe ytgw
;fU rfUgt st;t ni>
9. ES :
(i) ES E E v +{x ni+ E +Yx i
E x i xn JE lx u V J xE
15(vi) ES E |M E *

(ii)

Computer software acquired from vendors is recognised


as Intangible Asset only if the value /cost of the software
is more than Rs.10 Lakhs. Such intangible assets are
amortised over its effective life subject to a maximum
period of ten years.

9.

Employee Benefits:

(i)

The Bank has applied Accounting Standard 15(Revised)


- Employees Benefits, issued by the Institute of Chartered
Accountants of India, for recognition of its liabilities in
respect of employee benefits.

(ii)

140

(ii)

(iii)

(iv)

(v)

nPEE xvi ES E ni - {x, OS],


+E xEnEh, +E E i, U]] E
xvh |VC]b x] Gb] {ri E |M E E +i
ij EE u EE x { xE Vi *
< |E xvi ni {x + OS] E
xvE + +x <E B |vx E
Vi *
xv E v +v i EB MB +nx E E
{ +Yi E Vi + -x Ji |i
E Vi *
+{EE ES E, |nx EB Vx E
x tuFt , M-]]Ei { E { +Yi
E Vi *
SUE xk Vx ( + B) E ii OS] il
{x vi +xO il +iH +nx i E
..E E nxn E +x {S E +v {vi
+lMi V E { x M *

10. V +Yx :
xxJi E UcE + il E J ={Si +v {
E M :
(i) +x{V +i E { MEi +O { V il
+x + E iE x M *
(ii)

(iii)

+ E il V E E { { V + E,
vi E xvh +vE u {i +n E i J
E M *
VUtutuyptl mtJosrlfU rldob fUtu yt:rd; htsJ gg btlt
Vi ni ytih Rmu vtka JMtu b vrhNtur"; rfUgt Vi ni*

(ii)

Liability towards long term defined employee benefits


Pension, Gratuity, Leave Encashment, Leave Fare
Concession and Sick Leave are determined based on
actuarial valuation by independent actuaries at the year
end by using Projected Unit Credit method. Liability so
determined is funded in the case of Pension and Gratuity,
and provided for in other cases.

(iii) In respect of Provident Fund, the contribution for the period


is recognized as expense and charged to Profit & Loss
account.
(iv) Short term employee benefits are recognized as an
expense at an undiscounted amount in the Profit and Loss
Account of the year in which the related services are
rendered.
(v)

Expenditure towards ex-gratia and additional contribution


in respect of gratuity and pension under Voluntary
Retirement Scheme (VRS) is treated as Deferred
Revenue Expenditure amortized over a period of five years
in terms of RBI guidelines.

10.

Revenue Recognition :-

Income and Expenditure are accounted for on accrual basis


other than those stated below:
(i)

Interest and Other Income on advances classified as nonperforming assets are recognized to the extent realized.

(ii)

Income from interest on refund of Income Tax and Interest


Tax are accounted for in the year the order is passed by
the concerned assessing officer.

(iii) Expenditure on Follow on Public Offer is considered as


Deferred Revenue Expenditure and is amortised over a
period of five years.

11. {]]

11.

E u |{i EB E ={Si +v { -x J +Yi


E Vi *

Rentals received by the Bank are recognized in the profit and


loss account on accrual basis.

{Sx {]] { M< +i i {]] E Mix -x


J E { +Yi E Vi *
12. |i +Vx

Lease payments for assets taken on operating lease are


recognized as an expense in the profit and loss account.

|i <C] E + b<]b +Vx E {] i


xn JE lx u V J xE 20 |i +Vx
fuU ylwmth fUe st;e ni> |i <C] E +Vx E Mhx
+v i E <C] E i +i J x +
E M EE E Vi * |i <C] b<]b +Vx E
Mhx <C] E i +i J + E nx
E b<] <C] E |M E E Vi *
13. Evx
(i) E i |vx S E (xxi E{E E-] i) +

Lease

12. Earnings Per Share


Basic and Diluted Earnings per Equity Share are reported in
accordance with the Accounting Standard 20 Earnings per
share issued by the Institute of Chartered Accountants of India.
Basic earnings per equity share are computed by dividing net
income by the weighted average number of equity shares
outstanding for the period. Diluted earnings per equity share
are computed using the weighted average number of equity
shares and dilutive potential equity shares outstanding during
the period.
13. Taxation
(i)

141

Provision for tax is made both current Tax (including

+lMi E, nxt i E Vi * S E E |vx


|V E n + E fUtlqlt E |M EE E Vi *
+i E Eh =i{z +lMi E +i + niB,
V {i +v |iix E M , ix {j E il iE
xB MB n xB Vx E Exx + E n
E |M EE +Yi E Vi * +i E +Yx i
iE x E Vi V iE E i xSi E
{{i EM + ={v M V B +lMi
E +i E VBM*
(ii)

gql;b JifUrvfU fUh (bix) sbt fUtu ytr;gt vh fuUJ ;c


ne YJk Wm mebt ;fU yrCtt; rfUgt st;t ni sc Yumt Xtum
btK ntu rfU fkUvle rlvrh; yJrv fuU =tihtl mtbtg ytgfUh
fUt Cwd;tl fUhude>
14. xEn B i xEn
xEn B i xEn l xEn + B]B xEn il
i W E *
15. +S +i ({xEi +i i) { '<{]
+ ' E +Yi E M il i xn
JE lx u V J xE 28 '<{] +
' E +x -x Ji |i E Vi *
16. +EE niB il |vx + +EE +i
(i)

(ii)

E)

J)
i)

+l
ii)

iii)

i xn JE lx u V J xE 29
'|vx, +EE niB B +EE +i' E +x{
E |vx i +Yi Ei V E {U P]x E
{h{ ix ni =i{z i +
E +lE vx E | ni E
vx i +{Ii M + V ni E E
x +xx E V Ei *
xxJi E B |vx +Yi x E M :
{U P]x+ =i{z E< i ni + VE
+ii = P]x E x +l x x { x EM
+l E B +xSi P]xB V {hi E E
xjh x *
E< ix ni V {U P]x+ =i{z + =
+Yi x E M CE :
x E +lE vx E |
ni E vx i +{Ii M

Minimum Alternate Tax MAT) and deferred taxes.


Current tax is provided on the taxable income using
applicable tax rate and tax laws. Deferred Tax Assets and
Liabilities arising on account of timing differences and
which are capable of reversal in subsequent periods are
recognised using the tax rates and the tax laws that have
been enacted or substantively enacted till the date of the
Balance Sheet. Deferred Tax Assets are not recognised
unless there is virtual certainty that sufficient future
taxable income will be available against which such
deferred tax assets will be realised.
(ii)

Minimum Alternate Tax (MAT) credit is recognized as


assets only when there is convincing evidence that the
company will pay normal income tax during the specified
period.

14. Cash and Cash equivalents


Cash and cash equivalent include cash on hand and in ATMs
and balances with RBI.
15. Impairment of Losses (if any) on Fixed Assets (including
revalued assets) are recognized and charged to Profit &
Loss Account in accordance with the Accounting Standard
28 Impaired of Assets issued by The Institute of
Chartered Accountants of India.
16. Contingent Liabilities and Provisions & Contingent
Assets
(i)

In conformity with AS 29. Provisions, Contingent


Liabilities and contingent Assets. Issued by the Institute
of Chartered Accounts 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.

(ii) No provision is recognized for


a)

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

b)

Any present obligation that arises from past events but is


not recognized because

i)

It is not probable that an outflow of resources embodying


economic benefits will be required to settle the obligation;

or

ni E E x +xx x E V Ei
* B ni E +EE ni+ E { nV E
Vi * <xE xi +i { xvh E Vi
+ ni E E = M E B |vx E Vi
VE B +lE vx E | ,
=x +ii +vh {li E UcE V ni E
E x +xx x E V Ei *
k h +EE +i E +Yi x E
M CE <E {h{ B + E +Yx
Ei V E x V Ei*

ii)

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 never be realized

142

Ei k h {
J ]{{h

1. (i)

(ii)

2. (i)

(ii)

NOTES ON ACCOUNT TO CONSOLIDATED


FINANCIAL STATEMENTS

i V E ( E) E nxn E +x{ ={V


il +x{V +O i {{i |vx E M *
E E k li E Vi Ex E =q 31.03.2011
E E +x{V +O E v i V E
u xvi xxi |vx +vE . 48.00 Ec
({U . 48.00 Ec) E +iH E i S
|vx E M*
+i J vx E +iMi |] E +E x
31.03.2011 iE E M * J Vx Ji
E l il |vx E il J+ i J+ E
+{ |] E vx E |Mi { * <E
+iH i V E E {{j E +x 30.09.2010
iE E +v E +i J J E x il V |]
E {lCEh il 31.03.2011 iE E E E {h
x V E { , +i: E< |vx +{Ii x *

Adequate provision has been made in respect of


Performing and Non-performing Advances in terms of
Reserve Bank of India (RBI) guidelines.

(ii) Prudential Floating Provision of Rs.48.00 Crores


(Previous Year Rs.48.00 Crores) is held as at
31.03.2011 in respect of gross Non-performing
Advances over and above the minimum provision
prescribed by RBI with a view to strengthen the
financial stability of the Bank.
2. (i)

Under Inter-Branch reconciliation, initial matching of


entries has been done upto 31.03.2011. Reconciliation
of unmatched entries with the balance in Branch
Adjustment account and transactions between Head
Office and branches including branches inter-se is in
progress. Further, in terms of RBIs circular,
segregation of debit and credit entries in Inter Branch
Account pertaining to the period upto 30.09.2010 and
remaining outstanding as on 31.03.2011 have resulted
in net credit, hence no provision is required.

EU J+ V, +O B x] Ji E v h
E i/Ji E x/vx E E |Mi { * =H Ij
< {{i |Mi E qxV |vx E +i E E E J
{ vx E |, +M i, iiE x M * ={H Ij
{{i |Mi E nJi B |vx E x E E E Ji
{ vx E |, n , i{h x M*

(ii) At some branches, preparation of details / balancing /


reconciliation of accounts relating to Balances with
Banks and NOSTRO Accounts are in progress. Since
substantial progress has made in the above areas,
the management is of the view that the impact of
reconciliation, if any, on the accounts of the Bank will
not be material.

. . . E xn E +x, V E nxE 17 S,
1998 E =xE bB.+.BB.423.22.04.001/
97-98 , 330 J+ E v z CiMi
B +CiMi J {x +i, V E .141.39
Ec x @h , E 2000 B 2004 E nx
|vx E E lxii E n M l B ""+EE
J-x"" J M l* .. x nxE 09 n,
2010 E +{x bB.+.BB. . 8002/
22.04.001/2010-11 E +x <x 330 J+ E B
J+ E { ix { E E i h
{] x Ex E +xi n *

(iii) In terms of RBI directives as contained in their


DBS.CO.SMC.423.22.04.001/97-98 dated March 17,
1998, old difference in various Personal & Impersonal
Account Heads in respect of 330 branches aggregating
net credit of Rs. 141.39 crores was transferred to Head
Office during the year 2000 and 2004 and kept in
Contingency Account- General. The RBI, in terms of
their DBS.CO.SMC.No. 8002/22.04.001/2010-11 of
December 09, 2010, have permitted not to report these
330 branches as arrear carrying branches to Reserve
Bank of India in Banks quarterly statement on
Balancing of Books.

(iii)

3. ni z xE xh { S Ex E n
+E i E u .1834.76 Ec ({U . 1322.93
Ec) (+lMi E i) E |vx {{i x M*
4. (i)

1. (i)

31.03.1997, 31.03.2005 il 31.03.2007 E {i


B Ei{ { E vwlbqoEx +xni EE
E {] E +v { E M + G: . 125.99
Ec (hVE B +), . 370.08 Ec (hVE
B +) il . 298.32 Ec (hVE) E =vM
vx E {xx +Ii E V E M* |iE
{xEi { { E {Ex +Ji

3.

The provision for income tax (including deferred tax)


aggregating to Rs.1834.76 Crores (previous year Rs.
1322.93 Crores) held is considered adequate after taking
into consideration various judicial decisions on disputed
issues.
4. (i) Certain premises were revalued on the basis of the
reports of the approved valuers during the year ended
on 31.03.1997, 31.03.2005 and 31.03.2007 and
upward revision amounting to Rs. 125.99 Crores
(commercial and residential), Rs.370.08 Crores
(commercial and residential) and Rs. 298.32 Crores
(commercial) respectively had been credited to
Revaluation Reserve. Depreciation on Revalued

143

{ E Vi * {xEx E Eh . 4.45 Ec
(Mi . 4.68 Ec) E +iH E {V
+Ii +ii E +xS .14 n (vii) +x
+ E +iMi v + n M *

premises is worked out each year on its written down


value. Additional depreciation of Rs.4.45 Crores
(previous year Rs.4.68 Crores) due to revaluation has
been transferred from Revaluation Reserve Account
and shown in Miscellaneous Income under the head
Other Income included in Schedule No. 14 item (vii).

V Jb E Mi ={v x , B +I
Jb il x E Mi { xvi E M *

(ii) Depreciation has been charged on composite cost of


Land and Building, where separate cost of land is not
available.

V Mi ={v x {]] +v i {]]vi


{ | E {vx Mi +v { +l +Ji
{ E M ni*
(iv) xxJi {k E {VEh +{SEiB + { E
Vx :
E. 1990 + 1998 E nx EEi B x G:
29 + 10 ] 2 + {k VxE
Mi . 0.86 Ec ({U .0.86 Eb) *

(iii) Premium on leasehold land has been amortized over


the period of lease, based on cost or written down
value, where original cost is not available.

(ii)

(iii)

(iv) For the following properties registration formalities are


yet to be completed:

J. +xn E, x<n BE {]]vi {k VE


Mi .0.09 Ec ( {U . 0.23 Ec)*
d. rJt JMo fuU =tihtl autRo YJk ni=htct= b =tu Cq-mkvrt Fhe=e
dR>
(v)

+i +i i +x +i E h xxi

a.

2 residential properties purchased during the year 1990


& 1998 at Kolkata & Bhubaneshwar consisting of 29 &
10 flats respectively with total original cost of Rs.0.86
Crores (Previous year Rs.0.86 Crores).

b.

1 leasehold property at Anandlok, New Delhi with


original cost amounting to Rs. 0.09 Crores (previous
year Rs.0.23 Crores).

c.

2 landed properties purchased during the the financial


year at Chennai & Hyderabad.

(v) Other Assets include intangible assets, details of which


are as under.

(< Ec )/(< In crore)

h /

Particulars

+l \ Opening Balance
E nx {vx \ Additions during the year
E nx {vi \ Amortized during the year
<i \ Closing Balance

5. (i)

(ii)

(iii)

.0.44 Ec (Mi .0.44 Ec) E +Ei E


x E v E E + G{/]E] |{i Ex
*

5. (i)

2010-11

2009-10

20.05

12.38

19.19

10.04

3.65

2.37

35.59

20.05

In respect of Investments of face value of Rs.0.44


Crores (Previous year Rs.0.44 Crores) the Bank is yet
to receive scrips / certificates.

, {ix bS il <C] Vc S+ b/
S E{] b E x] i E {I +O
E x . 770.89 Ec (Mi . 849.82 Ec)
*

(ii) Total Investments made in shares, convertible


debentures and units of equity linked mutual fund /
venture capital funds and also advances against
shares aggregate to Rs.770.89 Crores (Previous year
Rs.849.82 Crores).

i V E E nxn E +x . 9.78 Ec
(Mi . 228.70 Ec) E , V E b ]
S] h |ii E G x E
x , E {V |Ii Ji +ii E M *

(iii) As per RBI guidelines, an amount of Rs.NIL (Previous


Year Rs.9.78 Crores) being an amount equivalent to
post tax profit on sale of Held to Maturity
category securities is transferred to Capital Reserve
Account.

144

(iv)

6.
7.

8.

V E i{h J xi J 3(C)(i), =Ji ,


b ] S] h E E nx {vi
|ii E +Ei E >{ . 83.33 Ec (Mi
. 112.32 Ec) E +iH +Vx Mi il V
x { + P]E ..E E xnx -x
Ji E x + xvx E {xx x
E { n M *

(iv) In respect of Held to Maturity category as stated in


significant Accounting Policy No. 3 (C)(i), the excess
of acquisition cost over the face value of the security
amortised during the year amounts to Rs.83.33 Crores
(Previous year Rs.112.32 Crores) has been netted off
from interest on investments and shown under Income
from Investments in Profit and Loss Account in terms
of RBI direction.

E x E nx Vx ]bM E B E< k{h x


E + x E +i E |iiEh E *
E nx E x E .670.00 Ec (MM) E
.10/- |i E 29515418 <C]
.217/- E | { +vx +]x +v { i
E (i E ]{i) E V EB * . 670. Ec
.29.52 Ec (MM) E {V Ji il
.640.48 Ec (MM ) E | Ji V
J M*
J xE E +x{ +x{x

6. The Bank has not made any financing for margin trading
during the year and also not securitised any assets.

E x i xn JE lx u V xxH
J xE (BB) E +x{x E il B J
xE E |vx E +x xxH |E]Eh E V
*

The Bank has complied with the following Accounting


Standards (AS) issued by the Institute of Chartered
Accountants of India and the following disclosures are
made in accordance with the provisions of such Accounting
Standards.

8.1 J xE 5 : ""+v i x +l x, { E
n il J xi''

7. During the year, Bank has issued 2,95,15,418 equity shares


of Rs. 10/- each at a premium of Rs. 217/- per share
amounting to Rs. 670.00 Crore (approx.) on preferential
allotment basis to Govt. of India (President of India). Out
of Rs. 670.00 Crore, Rs. 29.52 Crore (approx.) credited to
Share Capital Account and Rs. 640.48 Crore (approx.) to
Share Premium A/c.
8. Compliance with Accounting Standards

8.1.

{ vi + + E h xxx :

Accounting Standard 5 Net Profit or Loss for the


Period, Prior Period Items and Changes in Accounting
Policies)
Income and Expenditure relating to prior period are
as under:

(< Ec )/(< In crore)

h /

Particulars

+ \ Income
\ Expenditure

x / Net

8.2. E x ES l {x (x<), {x ({x), OS],


+E xEnEh, BB + U]] E v
+{x ni+ E +Yx i i xn JE lx
u V J xE 15 (BB 15) (vi) E 01
+|, 2007 +{x *
8.3. <n E ES {x Vx ({x) OS] E
lx { {x ({x) E E E BB{ E v
+i xh ni B i E xx =SSi x
u n M + {i E M +n E {h{ E
E {I +x x M E <x {x E
OS] E Mix E* Vx E E { +xi
+ E E xnE b E +xnx E +x n E n

2010-11

2009-10

1.29

(9.34)

4.01

3.03

(2.72)

(12.37)

8.2.

The Bank adopted Accounting Standard 15(Revised)Employee Benefits, issued by Institute of Chartered
Accountants of India, for recognition of its liabilities in
respect of employee benefits, viz, Pension (New),
Pension (Old), Gratuity, Leave Encashment, LFC and
Sick Leave w.e.f. 1st April 2007.

8.3.

Consequent upon judgement & order passed by the


Honble Supreme Court of India in finally deciding on
the Banks SLP in the matter of its pension(old) scheme
in lieu of gratuity styled Allahabad Bank Employees
Pension Scheme (Old) making it obligatory on the part
of the Bank to pay gratuity even to these pensioners,
the said Scheme has been discontinued in terms of
approval of the Banks Board of Directors with prior

145

M< + <xE lx { <x {x E OS] E Mix


E Vx * <B 31.03.2011 E lli +
{x ({x) E v E< |vx x i E
M + x +{Ii *
8.4. Vx {i EB Vx E {x ({x) E {
Si .168.77 Ec .150 Ec E |M ui
{x E{ (B{{+ - 1995) E Eh {c +iH
E v E E ni+ E {I |vx Ex E
B E M* ES E B =x M E B l V
20.09.1995 E E E i l {xi, <xx {x
x 1995 i {x E E{ x +{x l* S B
.18.77 Ec E k 2009-10 EB MB
.33 Ec E {U |vx E l E E ni
Ji +ii E M< V ={ { 16.3.2 l=Ji
xx =SSi x E +n E +x{x OS] E
Mix E { l* < v E |vx .51.77
Ec * < .32.61 Ec E Mix =xE E
n M VxE x +H, 2010 Vx E +iMi {x
G l + EU {j i i{ ES E Exx
E n M Vx n |{i B l* . 19.16
Ec E E xh E S B l E ni E
Mix Ex E B {{i { M*
8.5. vi {IE E |E]Eh - J xE (BB) 18
vi {] E S B xnx
vi {] E x, E E l =xE v il EB MB
xnx*
GE

{nx

Sl. No.

Name

Designation

31.3.2011 fUtu
1

V. {. =qyt
b. E

Shri D. Sarkar
3

B. +. xE
Shri M. R. Nayak

{v /
Remuneration
2010-11

2009-10

Chairman & Managing Director

20.37

21.70

Executive Director

13.57

2.48

+vI B |v xnE
E xnE
E xnE

|v xnE B <+ + E <x .

Executive Director

12.72

1.92

Shri Prasad Akolkar

Managing Director and CEO


of AllBank Finanace Ltd.

13.03

11.62

/ Ex Directors

E. +. Ei

Shri K. R. Kamath
2

The names of the related parties, their relationship with


the bank and transaction effected.
(< J ) / (< in Lacs)

|n +EE

. {. xnE
1

8.5.

g:tr:r; J;obtl rl=uNfU / Existing Directors as on 31.3.2011

Shri J. P. Dua
2

8.4.

permission from the Government, w.e.f. October 2010,


simultaneously paying gratuity to these pensioner.
Hence, further provisioning is neither made nor required in respect of Pension (Old) as on 31.03.2011
and in future.
Out of the accumulated provision for Pension (Old)
amounting to < 168.77 Crore as at the time of
discontinuation of the Scheme, < 150.00 Crore has
been utilised towards provisioning against Banks
liabilities in respect of Additional Load on account of
2nd Option for Pension (ABEPR-1995) by a section of
employees who were in the Roll of the Bank as on
29.09.1995 but did not exercise option for Pension
Regulations-1995 earlier. The remaining < 18.77 Crore
has been transferred to Outstanding Liabilities A/C to
club with an earlier provision of < 33.00 Crore made in
F.Y. 2009-10, towards payment of gratuity in
compliance of Honble Supreme Courts Order, as
mentioned in paragraph 17.3.2. above, making total
provision on this score to the tune of < 51.77 Crore.
Out of this, payment to the tune of < 32.61 Crore has
already been made to those whose names appeared
in the Pension Scroll under the Scheme in October
2010 and some of the legal heirs of eligible deceased
ex-employees whose claims were received. The
balance < 19.16 Crore is considered to be sufficient to
meet the payment liability to the remaining judgement
beneficiaries.
Related Party Disclosures Accounting Standard (AS)
18: List of Related Parties and Transactions

i{ +vI B |v xnE

E. E. +O

i{ +vI B |v xnE

Ex-Chairman & Managing Director

4.60

17.69

Shri K K Agarwal

Ex-Executive Director

2.17

14.31

OS] il +E xEnEh vi E xvh O


E{x E +v { E { EE |h u E Vi
il inx = ={H Sx x M *
+xM E{x x { Vx <x E. . E l EB
MB xnx E h xxEi :

Expenses towards gratuity and leave encashment are


determined actuarially on an overall company basis annually
and accordingly have not been considered in the above
information.
Transactions with associate company Universal Sompo
General Insurance Company Limited, are as follows:

146

h \

(< Ec )/(< In crore)


Particulars

2010-11

2009-10

7.42

5.49

6.57

2.98

+Vi + \ Income Earned


|nk | \ Insurance Premium Paid
+xM E{x :

Subsidiary:

+E <xx ]b ({h i )
H =t :

i)

i)

i)

Joint Venture:

x { Vx <xx E{x .

i)

BB+<(<b) .
BB] :
ii)

i)
ii)

Universal Sompo General Insurance Company Limited

ii) ASREC (India) Ltd.


Associates:

<n { Oh E*
n Oh E

i)

Allahabad U P Gramin Bank

ii) Sharda Gramin Bank

cfU fuU WU Ij Oh E E E 35% E , +


x { Vx < E{x 30% E *
+xM B BB] E l xnx E J (BB) 18
E vi {IE |E]Eh E { 9 E vx Ji B x
E M V V u xji =t E =x +x vi
{IE E l =xE xnx vi J Ex H Ei
V V u xji *
{]] |E]Eh :
E) E E { E / + v+ E B z {]]
* < v xxi |E]Eh E Vi :
xxJi |iE +v i xi x E Ex {SxMi
{]] E +iMi xxi {]] Mix E M :

i)

All Bank Finance Limited (wholly owned)

31.03.2011 E lli +{i {]] +v i n E

The Bank is holding 35% shares of the above Associated


Regional Rural Banks and 30% shares of Universal Sompo
General Insurance Company limited.
The transactions with the subsidiaries and associates have
not been disclosed in view of para 9 of the (AS)-18 Related
Party Disclosure, which exempts state controlled enterprises
from making any disclosure pertaining to their transactions
with other related parties which are also state controlled.
Lease Disclosure:
A)

The Bank has various operating leases for office /


residential facilities. Disclosures in this regard are as
under:

i)

The total of future minimum lease payments under noncancelable operating leases for each of the following
periods:
Rent payable for unexpired lease period as on 31.03.2011

(< Ec )/(< In crore)


Vn {]] +v

/ Existing Lease Period

=ug htrN / Amount Payable


2010-11

BE +xvE / Not later than one year


BE E n il {S +xvE / Later than one year and not later than five years
{S E n / Later than five years
<E +xM E v , {]] J xE |V x CE
E{x x 01.04.2001 E n E< {]] Ei x E *
ii)

iii)

ix {j E iJ E xi x E Ex ={ {]] E
+iMi |{i EB Vx |ii xxi ={ {]]
E Mix E M : x ({U : x)
vi +v i B x E h +Yi {] ]
Mix : . 60.75 Ec ({U .48.58 Ec)

2009-10

32.96

36.11

110.25

94.66

29.99

37.13

In respect of its subsidiary, lease accounting standard is not


applicable since the Company has not sanctioned any lease
after 01.04.2001.
ii) The total of future minimum sublease payments expected
to be received under non-cancelable subleases at the balance
sheet date: Nil (Previous Year: Nil)
iii) Lease payments recognised in the statement of profit and
loss for the period: Rs.60.75 Crores (Previous Year: Rs.48.58
Crores)

147

iv)

vi +v i B x E h +Yi
|{i(+l |{) ={-{]] E Mix :x ({U :
x)

J) k {]] :
E E { k {]] E +iMi E< {k x *
8.6. |i +Vx : J xE (BB)20:
G .

Sl No.

Particulars

iv) Sub-lease payments received (or receivable) recognised


in the statement of profit and loss for the period: Nil (Previous
Year: Nil)
B) Financial Lease:
Bank is not having any assets under Financial Lease.
8.6. Earning Per Share Accounting Standard (AS) 20:

2009-10 i

2008-09 i

For the year


2010-11

For the year


2009-10

32.22

Rs. 27.50

|i + b<]b +Vx
Basic and Diluted Earning Per Share (Rs.)

8.7. + { E i J - J xE (BB) 22

8.7.

E nx +lMi E i E Vx E { . 51.88
Ec(x) ({U x x . 11.10 Ec) E B
x Ji sbt rfUgt M* ix {j E iJ E lli
+lMi E +i / ni+ E J P]E ix{j E il E
+x xxi :

h /

Particulars

Accounting for Taxes on Income: Accounting


Standard (AS) 22
During the year, an amount of Rs. 51.88 Crores (Net) (Previous
year net debit Rs.11.10 Crores) has been credited to the Profit
& Loss Account by way of adjustment of deferred tax. The
major components of Deferred Tax Assets/ Liabilities as on
Balance Sheet date are as under:

(< Ec )/(< In crore)

E |

Vx Vc/(P])

E +i

At the beginning
of the Year

Adjustment
Add/(Less)

At the close
of the Year

attq JMo

d; JMo

attq JMo

d; JMo

attq JMo

d; JMo

C. Yr.

Pr. Yr.

C. Yr.

Pr. Yr.

C. Yr.

Pr. Yr.

Nil

Nil

Nil

Nil

Nil

Nil

1.23

0.65

3.46

0.58

4.69

1.23

3.66

6.99

(3.65)

(3.33)

0.00

3.66

Nil

2.12

Nil

(2.12)

Nil

Nil

0.54

0.54

(0.54)

0.00

0.00

0.54

5.43

10.30

(0.73)

(4.87)

4.69

5.43

Nil

1.34

Nil

(1.34)

Nil

Nil

28.81

21.29

51.74

7.52

80.55

28.81

+lMi E +i / Deferred Tax Assets


+E xEnEh i |vx /
Provision for Leave Encashment

U]] i |vx /
Provision for Sick Leave

vNl (vwhtle) nu;w tJvx /


Provision for Pension(old)

BB i |vx / Provision for LFC


+x / Others
E / Total
+lMi E niB / Deferred Tax Liabilities
+S +i E /
Depreciation of Fixed Assets

x E { vi |ii { ={Si Ei +n V
Interest Accrued but not due on securities
held as Investments

+x / Others
E / Total
+lMi E niB (x) /

0.59

0.54

(0.59)

0.05

0.00

0.59

29.40

23.17

51.15

6.23

80.55

29.40

Deferred Tax Assets (Net)

23.97

12.87

51.88

11.10

75.86

23.97

148

cfU YaxeYb uKe fuU rlJuNt vh yt:rd; fUh +Yi lne E


mfU;t gtrfU cfU fuU rJath mu; Rm mkck" b mbg b fUtuRo yk;h
lnek ni> rlJuNt vh yt:rd; fUh fuU +Yx vh Cth;eg ml=e
tuFtfUth mk:tl fUe rJNuMt mttnfUth mrbr; fuU rJath fuU
ylwmth, cfU lu Rm bwu fUtu Cth;eg cfU mkD fuU vtm btdo=Nol
nu;w Cust ni gtrfU Wtud sd; b Rm rJMg vh fUtgoJtne fUhlu
b fUtVUe rCt;tYk ni>

The Bank does not recognise deferred tax on HTM category


of investments as in its opinion; there is no timing difference in
this regard. Pursuant to the opinion of the Expert Advisory
Committee of the Institute of Chartered Accountants of India
on recognition of deferred tax on investments, the bank has
referred the issue to the Indian Banks Association for their
guidance on the matter since there is a difference in treatment
on this subject in the industry.
8.8.
A substantial portion of the banks assets comprise of
financial assets to which Accounting Standard (AS)
28 Impairment of Assets is not applicable. In the
opinion of the management, there is no impairment of
other assets of the Bank as at 31.03.2011 to any
material extent requiring recognition in terms of the
said standard.
8.9.
Disclosure in terms of Accounting Standard (AS) 29
on Provisions, Contingent Liabilities and Contingent
Assets:
Movement of Provision for Liabilities (Closing Balance):

8.8 k +i E { E E +i E {{i + {
J xE (BB) 28 <{] + B] |V x
* |vx E =H xE E +x 31.03.2011 E
E E +x +i E< <{] x + =Ci
xE E +x +Yx i E< i{h i x
8.9

|vx, +EE niB + +EE +i E v


J xE (BB)29 E +x |E]Eh

ni+ i |vx E Sx (<i ) :

(< Ec )/(< In crore)


E lli

E lli

rJJhK /
Particulars

As on 31.03.2011

As on 31.03.2010

(a)

YlveY nu;w tJ"tl / Provision toward NPA


863.55
297.78
(b) rlJuN vh bqgtm nu;w tJ"tl / Provision for Depreciation on Investment
362.57
(c) btlfU ytr;gt nu;w tJ"tl / Provision towards Standard Assets
(d) ytgfUh nu;w tJ"tl / Provision towards Income Tax
1830.53
(e) yt:rd; fUh ytr; / =ug;t / Deferred Tax (Assets) / Liabilities
75.86
ylwMkde ttC fUh / Fringe Benefit Tax
26.04
(f)
(g) yg / Others
1112.19
fwUt / Total
4568.52
8.10.Jb Sx : J xE (BB) 17 / Segment Information: Accounting Standard (AS) 17
Jb
Business
Segments

]V

Corporate/
wholesale
security

Treasury

attq JMo
rJJhK/Particulars
htsJ/Revenue
vrhKtb/Result
tJ"tl/Provisions
vrhattl ttC

fUthvtuhux/:tufU
r;Cqr;gtk

d; JMo attq JMo

751.65
251.80
280.98
1294.24
23.22
26.04
641.76
3269.69

(< Ec )/(< In crore)

rhxut crfUkd

yg crfUkd
gJmtg

fwUt

Retail Banking

Other Banking
Operation

Total

d; JMo attq JMo

d; JMo attq JMo d; JMo attq JMo

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

2983.70

2608.47

5746.27

4276.43

3311.65

2766.23

430.61

293.76

12472.23

9944.89

261.07

140.30

1164.49

1080.39

1320.78

1114.57

327.41

237.58

3073.75

2572.84

1123.84

776.61

1949.91

1796.23

510.38

567.77

Operating Profit

ytg fUh/Income Taxes


ymt"thK ttC/ntrl
Extraordinary profit / loss

d; JMo

Cr.Yr.

rlJt ttC / Net Profit


yg mqalt:

1439.53

1228.46

Other Information:

FkzJth ytr;gtk
Segment Assets

43973.88 39911.79 77154.26 53803.56 29009.98 26865.95

321.57

254.90 150459.69 120774.20

dih ytckrx; ytr;gtk


Unallocated assets

1148.23

149

1117.91

(< Ec )/(< In crore)


]V

Jb
Business
Segments

fUthvtuhux/:tufU
r;Cqr;gtk
Corporate/
wholesale
security

Treasury

attq JMo
rJJhK/Particulars
fwUt ytr;gtk

Cr.Yr.

d; JMo attq JMo


Pr.Yr.

fwUt

Retail Banking

d; JMo attq JMo

Cr.Yr.

yg crfUkd
gJmtg

rhxut crfUkd

Pr.Yr.

Cr.Yr.

Total

d; JMo attq JMo d; JMo attq JMo


Pr.Yr.

Cr.Yr.

Pr.Yr.

Total assets

Cr.Yr.

d; JMo
Pr.Yr.

151607.92 121954.11

FkzJth =ug;tYk
Segment liabilities

41818.46 38046.62 73372.47 51289.19 27683.56 25654.33

0 142874.49 114990.14

dih ytckrx; =ug;tYk


Unallocated liabilities

8733.43

6963.97

fwUt =ug;tYk
Total liabilities

Ctd F:CtidturtfU Fkz

151607.92 121954.11

htsJ/Revenue
ytr;gtk/Assets

Dhutq

yk;hhtx[eg

Domestic

International

d; JMo

attq JMo

d; JMo

attq JMo

d; JMo

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

12401.21

9895.83

71.02

49.06

12472.23

9944.89

147978.13

120139.03

3629.79

1815.08

151607.92

121954.11

Notes to Segment Information:

Ei Jb {]M +xM E{x, BE M-EM l E


E + E { x M *
i xn JE lx u V J xE BB17
+ = { E nxn E +x{ M] {]M E
|Vx E E E S Jb MEi E M
+li

The business of the subsidiary company, a non-banking


entity has been considered as residual business in consolidated segment reporting.

For the purpose of segment reporting in terms of AS 17


issued by the Institute of Chartered Accountants of India
and RBI guidelines thereon, the business of the bank has
been classified into three segments, viz.

]V {Sx

o Treasury Operations,

E{]/lE EM

o Corporate / Wholesale Banking

] EM

o Retail Banking

+x EM
ME Jb E (E) P + (J)+i] Jb MEi
E M *
vE +{I+ +vE BB+ |ii x
+ M BB+ |ii x E ] V {Sx
x x M *

o Other Banking business

o
l

Total

attq JMo

Jb Sx { ]{{h :
l

(< Ec )/(< In crore)


fwUt

/ Part B: Geographic Segments:

E Jb v Vb , +i + ni+ E
vi Jb E +]i E Vi + V E< n v
Jb E |ii x Ei =x |vi E +x{i
+]i E M *

Geographical segment has been classified as (a) Domestic and (b) International.

Investment in SLR securities in excess of statutory requirements and investment in non-SLR securities have been
considered as investment for Treasury Operations.

Expenses, assets and liabilities directly attributed to particular segment are allocated to the relative segment and
wherever the items are not directly attributable to specific
segment the same has been allocated in proportion to
business managed.

150

9. +EE niB:

9. Contingent Liabilities

ix {j E +xS 12 E G J (I) (VI) l=Ji


B niB G: x/+]x/x E x{]x
E {h, +{t E x{]x, M E M< , nMi
vi+ E i, P]xG + vi {IE u E M<
M { x k> +E <x . E +EE ni+
vi +iH ]{{h xxx :

Such liabilities as mentioned at Sl. No.(I) to (VI) in schedule


12 of Balance Sheet are dependent upon the outcome of
court / arbitration / out of court settlement, disposal of
appeals, the amount being called up, terms of contractual
obligations, devolvement and raising of demand by
concerned parties respectively. Additional comments in
respect of contingent liabilities of AllBank Finance Limited
are as follows:

z +{ |vEh E I i E v
ni +E V E{x E . 8.00 Ec ({U
12.09 Ec ) E E |{i x E x * 31.03.2011
E lli .8.89 Ec ({U .7.80 Ec) E
+O E, i { E] MB E + |{ +E b
E { n< M< * Exvh + +{ E
z Sh Vx i i *

Disputed Income Tax in respect of matters pending before


various appellate authorities where the Company expects
to succeed amounts to Rs.8.00 Crores (Previous Year Rs.
12.09 Crores). As on 31.03.2011, Rs. 8.89 Crores (Previous
Year Rs. 7.80 Crores) have been shown as advance
income tax, tax deducted at source, and income tax refund
receivable. This amount is pending adjustment at various
stages of assessment and appeal.

E{x E r @h E { +Ei x EB MB n:
.11.76 Ec ({U .11.76 Ec)
10. + E <x . E v xx x E
+nx, . .. n< u 13.05.1992 E + E
<x . E { MB E E E {I {k
E {h +ih x M * inx, E {nM E
iJ E E x M + =E n =x
{ Pi i ={S + +vE { <E E *
WvgwoU yt=uN fuU vrhKtbJv Nughtuk fuU ysol fUtu nPv
rlJuN btlt dgt>

Claims against the Company not acknowledged as


Debts : Rs.11.76 Crores (Previous Year Rs. 11.76 Crores)

10. In respect of AllBank Finance Limited, as per the order of


Honble Special court, the delivery of shares on 13.05.1992
by M/s V. B Desai to AllBank Finance Ltd., constituted
complete transfer of property in the shares in favour of the
Bank. Accordingly, the Bank became the owner of the
shares from the date of delivery of the shares and was
entitled to all accretions and rights declared thereafter.
Pursuant to the above-mentioned order, the acquisition of
the shares has been considered as long term investment.

11. {VMi Ji { x{nx i n E +xxi


VE |vx x E M (rlJt +O) .41.84
Ec (Mi .38.67 Ec) *

11. Estimated amount of contracts remaining to be executed


on capital account and not provided for (Net of Advance)
Rs. 41.84 Crores (Previous Year Rs. 38.67 Crores).

12. +x{V +i E +iMi vi |vx E Ij E+{


E E +O +xxi +v { P] n M iE
ix{j E +xS 9 lH x +O E xE
E*

12. Sector wise break up of provision held under


non-performing advances is deducted on estimated basis
from gross advances to arrive at the balance of net
advances as stated in the Schedule 9 of the Balance Sheet.

13. V +E Z M Mi E +Ec E {x:i


{x:MEi E M *

13. Figures of previous year have been regrouped or


reclassified wherever considered necessary.

151

<n E, <E +xM il <E i BB] E Ei


k h { J{IE E {]

,
xnE b
<n E
1. x lli 31 S, 2011 E <n E (E), <E +xM + BB] () E Mx ix{j il = iJ E
{i i Ei B x J + Ei lfU=e Jtn rJJhKe E VS E V xxJi :
i)
u J{I EB MB E E J{Ii J*
ii) +x J{IE u J{Ii BE +xM + n BB] E J{Ii J + n H =tbt E +J{Ii
J*
<x k h E =kni E E |vx E + <x |vx u {lE k h il <E P]E vi +x k
Sx+ E +v { i E M *
2. ni +{x J{I E +v { <x k h { +{x H Ex * x i xi& E J xE
E +x +{x J {I E * <x xE E +{I E < v Si +x |{i Ex i J {I E E C
k h xvi k {]M fS E +x i EB MB B +r h H * J{I {Ih +v {
E li Ex I E VS il k h |E]Eh * J{I |H J ri E Ex il |vx
u EB MB =Jx |CEx E l O k h E Ex i * E J{I
+i E ` +v *
3. x xxJi E k h E J{I x E :
i)
BE +xM VE k h lli 31 S 2011 E . 54.09 Ec E E +i il = iJ E {i
. 5.80 Ec E E V ni * <x k h E +x J {IE u {Ii E M VE {]
|ii E M< il V iE +xM E v E v , +i =H J {IE E {] { {
i +vi *
ii) BB] n Ij Oh E (+) , VE k h lli 31 S 2011 E . 7364.16 Ec

E E +i il = iJ E {i . 482.69 Ec E E V ni * <x k h E +x J
{IE u {Ii E M VE {] |ii E M< il V iE +xM E v E v ,
+i =H J {IE E {] { { i +vi * BE H =tb E{x, V E{x +J{Ii
VE E +i .448.62 Ec + E V h. 217.84 Ec *
iii) BE H =t V BE +i {xxh E{x VE k h +J{Ii + lli 31 S 2011 E . 126.39
Ec E E +i il = iJ E {i . 17.88 Ec E E V ni *
4. {] Ei E i xn JE lx u V J xE 21 Ei k h + J xE 23 Ei
k h B] x E J il J xE 27 H =t i E k {]M E +{I+ B i
W E E +{I+ E +x E |vx u Ei k h i EB MB *
5. n EB x , +xS 18 E x] . 16.3.5 E + vx+Ei Ei V VxE Ij E E E
ES i {x E{ {x: Jx { i W E u +{x nxE 09.02.2011 E {{j . b+b.{. / 80/
21.04.018/2010-11 E v |nx E M< U] E +x BB 15 ES E |vx E VxE E { M Ex
v . 598.16 Ec iE E r E Eh {x ni B OS] ni lMi EB Vx E i *
6. J{I E +v { il {lE k h E v +x J{IE E {] { S Ex il uFt rxvrKgt fuU +vvx
y:ot; ltux mk. 2 (i), 2 (ii) ytih 2 (iii) yk;h NtFt Ft;t fUe cub
u rJrgt fUu ;wl/CEx, WU ltux b g:tJrKo; rJrCt uFtNeMtu b
cfUtgt rJrgt fuU ;wl/CEx ytih vx fuU J {I {] E vx JE +i E:
(i) Ei ix{j lli 31 S 2011 E E Ei li E B x{I U ni ; B
(ii) Ei B x J = iJ E {i i E |Sx E Ei {h E B x{I U
ni *
(iii) Ei xEn | h-{j, h-{j E +v i E xEn | E B x{I U ni *
Ei . ni E {J Bb E.
xn JE
+<B+< {VEh J 110512W
(Exi V)
vtxolh
ni . 39461
Ei . B.P Bb E{x
xn JE
+<B+< {VEh J
(Snx S]]{v)
vtxolh
ni . 51254

302184 E

Ei . {.B. Bb BB]
xn JE
+<B+< {VEh J
(n{ E +O)
vtxolh
ni . 55420

313085E

Ei . fuU.Yb. yd{Jtt Bb E{x


xn JE
+<B+< {VEh J 853 N
(. {. )
vtxolh
ni . 073009

lx / Place : EEi / Kolkata


nxE / Date : 2nd May, 2011

152

Ei . B.+. xh Bb E.
xn JE
+<B+< {VEh J 002330S
(B.Bx. E]x)
vtxolh
ni . 22993
Ei . B.. Vx Bb E.
xn JE
+<B+< {VEh J
(E E. {])
vtxolh
ni . 056623

304012E

Auditors Report on the Consolidated Financial statements of Allahabad Bank, its


subsidiary and its interests in Associates and Joint Ventures
To,
The Board of Directors
Allahabad Bank
1. We have examined the attached Consolidated Balance Sheet of Allahabad Bank (the Bank), its subsidiary, associates and
joint venture (the Group) as at 31st March 2011 and the Consolidated Profit and Loss Account and the Consolidated Cash
Flow Statement for the year ended on that date in which are incorporated:
i. Audited accounts of the Bank audited by us
ii. Audited accounts of one subsidiary, two associates audited by other auditors and unaudited accounts of two joint
ventures.
These financial statements are the responsibility of the Banks management and have been prepared by the management
on the basis of separate financial statements and other financial information regarding components. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with generally accepted auditing standards in India. These Standards require that
we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. 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 statements. We believe that our audit provides a reasonable basis for our opinion.
3. We did not audit the financial statements of:
i. One subsidiary, whose financial statements reflect total assets of Rs.54.09 Crore as at 31st March 2011 and total
revenues of Rs. 5.80 Crore for the year ended on that date. These financial statements have been audited by
another auditor whose report has been furnished to us, and our opinion, insofar as it relates to the amounts
included in respect of the subsidiary, is based solely on the report of the said auditor.
ii. Associates that included two Regional Rural Banks (RRBs) whose financial statements reflect total assets of Rs.
7364.16 crore as at 31st March 2011 and total revenues of Rs. 482.69 Crore for the year ended on that date.
These financial statements have been audited by other auditors whose reports have been furnished to us, and
our opinion, insofar as it relates to the amounts included in respect of these associates, is based solely on the
report of the said auditors. The financial statements of one Joint Venture Company, which is an insurance company is unaudited, whose total asset is Rs 448.62 Crore and revenue of Rs 217.84 crore.
iii. One joint venture which is an asset reconstruction company, whose financial statements are unaudited and reflect
total assets of Rs. 126.39 Crore as at 31st March 2011 and total revenues of Rs. 17.88 Crore for the year ended on
that date
4. We report that the consolidated financial statements have been prepared by the Banks management in accordance with
the requirements of Accounting Standard 21 Consolidated Financial Statements and Accounting Standard 23 Accounting for investment in Associates in Consolidated Financial Statements, and Accounting Standard 27 Financial Reporting
of Interest in Joint Ventures issued by the Institute of Chartered Accountants of India and the requirements of the Reserve
Bank of India.
5. Without qualifying our opinion, we draw attention to note no. 16.3.5 of schedule 18 which describes deferment of pension
liability and gratuity liability due to increase in ceiling to the extent of Rs598.16 crores pursuant to the exemption granted by
the Reserve Bank of India to the public sector Banks from application of the provisions of AS 15, Employees Benefits vide
its circular No DBOD.BP.BC/80/21.04.018/2010-11 dated February 9th , 2011, on reopening of Pension Option to Employees of Public Sector Banks.
6. Based on our audit and consideration of reports of other auditors on separate financial statements and also subject to
Notes on Accounts i.e. Note No. 2(i),2(ii) & 2 (iii) regarding balancing / reconciliation of unmatched entries in Inter Branch
Accounts, balancing / reconciliation and clearance of outstanding entries in various head of accounts as stated in the said
notes, we are of the opinion that:
i. The Consolidated Balance Sheet gives a true and fair view of the consolidated state of affairs of the Group as at
31st March 2011;
ii. The Consolidated Profit and Loss Account gives a true and fair view of the consolidated results of operations of
the Group for the year ended on that date; and
iii. The Consolidated Cash Flow Statement gives a true and fair view of cash flows of the Group for the period
covered by the statement.
For Sudit K. Parekh & Co.
Chartered Accountants
ICAI Reg.No: 110512W

For P.A. & Associates


Chartered Accountants
ICAI Reg.No:313085E

For M. R. Narain & Co.


Chartered Accountants
ICAI Reg.No:002330S

(Srikant Jilla)
Partner
Membership No. 39461

(Dillip Kumar Agarwalla)


Partner
Membership No. 55420

(M.N. Venkatesan)
Partner
Membership No. - 22993

For S Ghose & Co.


Chartered Accountants
ICAI Reg.No: 302184E

For K.M. Agarwal & Co.


Chartered Accountants
ICAI Reg.No: 0853N

For M.C.Jain & Co.


Chartered Accountants
ICAI Regn No.304012E

(Chandan Chattopadhay)
Partner
Membership No. 51254
Place : Kolkata
Date : 2nd May, 2011

(C.P.Mishra)
Partner
Membership No. 73009

(Mukesh Kr Patawari)
Partner
Membership No.056623

153

+E <xx . fuU xnE E {]

DIRECTORS REPORT

xnEMh Binu 31 S, 2011 E {i k i E{x


E J{Ii J i E {] |ii Ei B xnE E
|zi *

The Directors have pleasure in presenting the Annual Report


together with audited financial statements of the Company for
the year ended 31st March, 2011.

k {h

FINANCIAL RESULTS

Ivx E n x E{x x {U +Vi . 7,14,92,466/E E{Si E {I . 2,79,50,799/- E E {Si


+Vi E * k {h E xxx :

During the year under review, your company earned profit after
tax of Rs.2,79,50,799 as against Rs. 7,14,92,466 in the
previous year. The summary of the financial results is as
follows:

( <)/( in <)
E V \ Gross Revenue
E \ Total Expenses
E { \ Profit Before tax (PBT)
E i |vx \ Provision for tax
E {Si \ Profit after tax

31.03.2011

31.03.2010

5,79,91,192
1,44,39,506
4,35,51,686
1,10,00,000
2,79,50,799

10,69,33,627
1,06,25,793
9,63,07,834
2,48,00,000
7,14,92,466

DIVIDEND

31 S, 2011 E {i i xnE x E E
x E*
{Sx

Directors do not recommend any dividend for the year ended


31st March, 2011.

k 2010-11 E` V n, ii E E, pi
r il ESS i E Ei < r E |iE | Oi
* <x ]-+lE EE E +E , xv E Mi Si
x * Sxn VxE Ij ={G |i E
+{I <C] E |lE V n * Oi: V n
+li x + <x r V E +{EE
V * < {o x E{x E +{EE =v, hVE
{j E xM E V xv |{i Ex E B v E n* B
+{I E Vi E S k EU + E B
V n >S x M*

The Financial Year 2010-11 was marked by hardening of the


interest rates, tight liquidity conditions, rising inflation, and
adverse impact of increase in crude oil prices. In the light of
these micro-economic factors, cost of funds has remained a
cause of concern. Primary market for equity remained subdued
with the exception of successful offering by selective public
sector undertakings. Interest rates on the whole remained
volatile and continued its journey northwards particularly at
the shorter end of the market. The scenario forced the
companies rushing for fund particularly through short term
borrowings, issuance of Commercial Papers (CPs) and so on.
It is expected that the interest rates will remain high for some
more time in the current financial year as well.

< {o E {` +{E E{x x @h x { vx


Epi E + {U E .70,00,000/- E {I
.1,07,83,144 E E +vi + +Vi E *

On the back drop of this scenario, your company focused on


Debt syndication activities and earned fee based income of
< 1,07,83,144 during the year as against < 70, 00,000 during
the previous year.

+{E E{x x E nx .2,32,42,336/- E x Vxi


+ |{i E VE J l + |ii { V +
S+ b x |{i + E Vi * x + E
ix { i {U E .3,42,16,288/- x E V
Ei CE < x E G |{i .1,63,49,564/- E
V BEM *

Your company reported investment income of < 2,32,42,336


during the year which is largely attributed to interest on fixed
income securities and dividend income from Mutual Fund
investments. The investment income is not strictly comparable
with that of previous year figure of < 3,42,16,288 since it
includes profit on sale of investment of < 1,63,23,204 which is
one time.

E nx EV +(BB x]) .5,81,60,085/- E {{i


{ P]E . 1,56,43,869 M* <E J Eh
<n E B +x u z S+ b J i x
E =xSx E Vx*

Brokerage income (MF units) during the year reported


significant drop to < 1,56,43,869 as against  < 5,81,60,085.
This is mainly attributed to large scale redemption of liquid
investments parked in various Mutual fund schemes by
Allahabad Bank and others.

OPERATIONS

154

+{E E{x u + E M< x BE +i


+ + E Vi E +{x OE +v E i E
=SS V =i{z EM*
+{E E{x x x Exx |G E x
E BEi vx E v {i BxB E BE
Bx{B Ji E nx .20,00,000 E E * +{E
E{x x { E E *

In regard to newly started Trusteeship services your company


has a modest beginning and is expected to generate higher
revenue by expanding its client base.

S E B n]Eh
E{x E n]Eh S k +{x ] | +{x
Miv =Jx r Ex E V E @h cEx
xM |vx, x Miv B +x E +vi B l
iExE +lE i +vx |VC] Ex B +x *

OUTLOOK FOR THE CURRENT YEAR

nxn E +x{x

Your company has made recovery amounting to < 20, 00,000


during the year from one of the NPAs of erstwhile NBFC activity
through One Time Settlement (OTS) rather than pursuing time
consuming legal recourse. Your company recovered the
outstanding amount in full.
Your company would endeavor to achieve significant growth
in terms of its activities viz, Debt Syndication, Issue
Management, Trusteeship activity and other fee based services
such as Techno Economic Viability studies, project appraisal
and so on.
COMPLIANCE OF SEBI GUIDELINES

+{E E{x Sx] EM + +x |V {V V vi


Miv E v u V z xn, nxn,
{{j E +x{x E *

ES E h

Your company has complied with various guidelines, directives,


circulars issued by SEBI pertaining to Merchant Banking and
other applicable Capital Market related activities.
PARTICULARS OF EMPLOYEES

E{x E E< ES E{x (ES h), x 1975 E


l {`i fUkvle yrvrlgb, 1956 fUe tht 217 (2Y) fuU ;n;
lnek +i ni*
E{x (xnE b E {] h E |E]Eh) x,
1988 >V E Ih, |tME +h B n p E
+Vx B Mx
< E +iMi E{x E EU {] x Ex *

None of the employees are covered under section 217 (2A) of


the Companies Act, 1956 read with Companies (particulars of
Employees) Rules 1975.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE
REPORT OF THE BOARD OF DIRECTORS RULES 1988
CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND
OUTGOINGS
The company has nothing to report under this head.

xnEMh

BOARD OF DIRECTORS

B E SGi V E{x E b E <n E E


, xk E {, b xM |vE, <n E
E 24 +Mi 2010 (|) E M*

Consequent upon retirement of Shri S K Chakraborty, who


was on the Board of the company, from the services of
Allahabad Bank, Shri D Narang, General Manager Allahabad
Bank was inducted on the Board w.e.f. 24th August, 2010.

E{x E xnE E { B. E. SGi E =xE EE


nx <n E E |nk + E b E +J nV
E il <E x E M*
E{x +vx 1956, E +x. 274(i) (g) E +iMi E<
xnE xi x +*

The Board placed on record its appreciation for the services


rendered by Shri S K Chakraborty during his tenure as Director
of the Company.

(E) b ` E
2010-11 E nx b E {S ` E < + Vx b E
n x M

(a) Board Meetings:

E{] Mxx

No Director of the Company has been disqualified under


section 274(i) (g) of the Companies Act, 1956.
CORPORATE GOVERNANCE
During the year 2010-11 five Board meetings were held and
attended by Board members:

xnE / Director
V.{. n+ Shri J. P. Dua
b. E Shri D Sarkar
{. E. M{i Shri P. K. Gupta
b. xM{i Shri D. Sengupta
+. V. Shri R. G. Sharma
B. E. SGi (24.08.2010 E xk)

`E E J

`E ={li

No. of meetings

Meetings attended

Shri S. K. Chakraborty (retired on 24.08.2010)


B. . ]]S Shri A. B. Bhattacharjee
b. xM (24.08.2010 xCi) Shri D Narang (appointed on 24.08.2010)
|n +EE Shri Prasad Akolkar

155

5
5
5
5
5

5
4
3
1
4

1
5
3
5

1
4
3
5

(J) J i

(b) Audit Committee:

J i E b E n {. E. M{i, +. V ,
B. . ]]S x E nx 4 `E E* J i E
EIj E{x +vx 1956 E +x. 292-B E +iMi *

The Audit Committee of the members of the Board comprising


Shri P. K. Gupta, Shri R. G. Sharma and Shri A. B. Bhattacharjee
held four meetings during the year. The scope of Audit
Committee is as per Section 292A of the Companies Act, 1956.

xnE E ni E h

DIRECTORS RESPONSIBILITY STATEMENT

E{x +vx, 1956 E v 217(2BB) E +{Ix xnE


ni h E v Binu {] E Vi E:

Pursuant to the requirement under Section 217 (2AA) of the


Companies Act, 1956 with respect to Directors Responsibility
Statement, it is hereby confirmed that:

E) 31 S 2011 E {i k E E J E i
Sx v Si {]Eh E l M J
xE E {x E M
J) xnE x B J xi E Sx B <x Mi {
M E B xh |CEx EB V HMi
B E{h Ivx i E{x E B x{I
ZE B < +v E nx +{E E{x E +l
x E li |ii E V E*
M) xnE x vJvc B +x +xii+ E Ex B
=xE {i Mx E B il E{x E +i E Ii
Ex i E{x +vx, 1956 E |vx E +x
{{i J +J E JJ i Si B {{i
vx J *
P) xnE x 31 S 2011 E {i i + ii
|i`x +v { E J i EB *

a)

In the preparation of the annual accounts for the financial


year ended 31st March, 2011, the applicable accounting
standards had been followed along with proper
explanation relating to departures.

b)

The Directors had 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 company
at the end of the financial year and of the profit or loss of
the Company for the year under review.

c)

The Directors had taken proper and sufficient care for


the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.

d)

The Directors had prepared the accounts for the financial


year ended 31st March 2011 on a going concern basis.

J{IE

AUDITORS

E{x +vx, 1956 E v 619(2) E ={v E{x { M


x E Eh i E xjE B J{IE, x< n x
2010-11 i b. Bb , xn JE EEi E
J{IE xH E *

The provisions of Section 619(2) of the Companies Act, 1956


being applicable to the Company, the Comptroller and Auditor
General of India, New Delhi has appointed M/s. De & Bose,
Chartered Accountants, Kolkata as Statutory Auditors of the
Company for the year 20010-11.

J{IE E {] { |vx E =k

MANAGEMENTS REPLY TO THE AUDITORS REPORT

+{x J{I E nx J{IE u E< xn] ]{{h


x E M<*

The Auditors made no specific qualification during the course


of their audit.

GENERAL

+{E xnE k j, i E, , i E xjE


B J{IE u nB MB Mnx i =xE |i
+{x + H Ei *
+{E xnE E{x E E E |i vxn Y{i Ex Si
+ <n E B <E ES |{i lx +
Mnx i =xE x Ei *

Your Directors wish to place on record their gratitude to the


SEBI, Comptroller and Auditor General of India for their
valuable guidance.

+{E xnE E{x E ES u nB MB Mnx E B


=xE x Ei *
xnE b E B B E + *

Your Directors also wish to place on record their thanks to the


Bankers viz: Allahabad Bank for their assistance, support and
guidance from time to time and also thankfully acknowledge
contributions made and efforts put in by companys employees.
Your Directors express their appreciation for the contribution
made by the Companys Employees.
For on and behalf of the Board of Directors

(|n +EE)
(V.{. n+)
|v xnE B <+
+vI

(Prasad Akolkar)
MD & CEO

156

(J. P. Dua)
Chairman

+E <xx ]b
AllBank Finance Limited
31 S, 2011 E ix-{j
BALANCE SHEET AS AT 31st March, 2011

+xS / Schedule
I.
I.

II.
1

2
3

xv E i / SOURCES OF FUNDS
vE E xv / Shareholders Funds
{V / Capital
Ii B +v / Reserves and Surplus
E /Total
xv E x / APPLICATION OF FUNDS
l +i / Fixed Assets
E E / Gross Block
P]B : / Less : Depreciation
x E / Net Block
x / Investments
S +i, @h B +O

31.03.2011

31.03.2010

(<)

(<)

150,000,000

150,000,000

323,634,572

295,890,615

473,634,572

445,890,615

C
50,909,927

51,176,500

33,312,130
D

33,451,355
17,597,797

17,725,145

348,786,706

334,240,825

Current Assets, Loans & Advances

rJrJ" =ul=th / Sundry Debtors


lfU= YJk cfU NuM/ Cash and Bank Balances
yg S +i / Other Current Assets
@h B +O / Loans and Advances

57,632

53,322,369

56,164,475

17,593,334

17,043,656

103,626,149

100,864,115

174,599,484

174,072,246

7,699,009

6,534,534

59,650,406

73,613,067

67,349,415

80,147,601

P]B : S niB B |vx


Less : Current Liabilities & Provisions

S niB / Current Liabilities


|vx / Provisions
x S +i / Net Current Assets
E /Total
i{h J xi
Significant Accounting Policies

J ]{{h / Notes on Accounts

107,250,069

93,924,645

473,634,572

445,890,615

={H ni ylwmqragt ;wtlvt E +z +M


The Schedules referred to above form an integral part of Balance Sheet.

ix-{j il E {] ni

b E B B E +

This is the Balance Sheet referred to in our report of even date.

Ei b Bb
For De & Bose

xn JE
Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mkgt/ Membership No.54962
VUbo vksefUhK mkgt / Firm Registration No. 302175E

For and on behalf of the Board

V.{. n+ / J. P. Dua
+vI / Chairman

|n +EE / Prasad Akolkar


ck" xnE B <+ / M D & CEO

{. E. M{i / P. K. Gupta
xnE / Director

ze. mhfUth / D. Sarkar


xnE / Director
+Vi vtrNlu / Abhijit Pashine
fUkvle mraJ / Company Secretary

lx : EEi / Place: Kolkata


nxE / Date: 23rd April,2011

157

+E <xx ]b
AllBank Finance Limited
31 S, 2011 E {i E x J
Profit and Loss Account for the year ended 31st March, 2011

+xS

31.03.2011

Schedule

+ / INCOME
baux crfUkd ytg / Merchant Banking Income
gwS+ b Jih EV / MF Distribution Brokerage
rlJuN ytg / Investment Income
|{i V / Interest Received
+x + / Other Income
/ EXPENDITURE
EE { / Personnel Expenses
|xE B +x / Administration & Other Expenses
+I / Depreciation
fUh vqJo ttC / Profit Before Tax
Evx nu;w tJ"tl / Provision for Taxation
- S E / - Current Tax
+ E Vx / Income Tax Adjustment
E {Si / Profit After Tax
+Oxi / Balance Brought Forward
+Oxi / Balance Caried Forward
i{h J xi / Significant Accounting Policies
J rxvrKgtk / Notes on Accounts

E {i

31.03.2010

E {i

Year ended

Year ended

31.03.2011

31.03.2010

 <

<

10,783,144

7,000,000

15,643,869

58,160,085

23,242,336

34,216,288

6,259,849

5,696,482

2,061,994

1,860,772

57,991,192

106,933,627

4,917,491

3,403,627

9,326,189

7,058,497

195,826

163,669

14,439,506

10,625,793

43,551,686

96,307,834

11,000,000

24,800,000

(4,600,887)

(15,368)

27,950,799

71,492,466

294,830,362

223,337,896

322,781,161

294,830,362

18.63

47.66

P
Q

+ |i (+Ei |i . 100)
Earnings per Share [ Face value < 100 each ]

B b<]b + |i (+xS gq E x] 5 E n )
Basic and Diluted Earnings per Share [ Refer to Note 5 on Schedule Q ]

={H ni +xS -x J E +z +M *

The Schedules referred to above form an integral part of Profit and Loss Account.

-x J il E {] ni *

This is the Profit and Loss Account referred to in our report of even date

b E B B E +
Ei b Bb
For De & Bose

xn JE
Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mkgt / Membership No.54962
VUbo vksefUhK mkgt / Firm Registration No. 302175E

For and on behalf of the Board

V.{. n+ / J. P. Dua
+vI / Chairman

|n +EE / Prasad Akolkar


ck" xnE B <+ / M D & CEO

{. E. M{i / P. K. Gupta
xnE / Director

ze. mhfUth / D. Sarkar


xnE / Director
+Vi vtrNlu / Abhijit Pashine
fUkvle mraJ / Company Secretary

lx : EEi / Place: Kolkata


nxE / Date: 23rd April,2011

158

+E <x ]b
AllBank Finance Limited

31 S, 2011 E {i i xEn | h
Cash Flow Statement for the year ended 31 st March, 2011
2010-11

2009-10

<

<

43,551,686

96,307,834

E. {Sx Miv xEn |


A CASH FLOW FROM OPERATING ACTIVITIES

E { x
Net Profit before Tax

Vx / Adjusted for :
/ Depreciation
V + / Interest Income
+-S+ b / Dividend Income - Mutual Fund
+- / Dividend Income - Shares
Bx{B i |vx + +{Ii x /
Provision for NPA no longer required

195,826

163,669

(23,872,813)

(16,673,832)

(5,364,971)

(6,558,693)

(28,650)

(278,500)

(1,681,929)

(1,278,142)

(76,988)

(6,750)

i |vx + +{Ii x /
Provision for Expenses no longer required

x +{ i |vx + +{Ii x /
Provision for Diminution in Investment no longer required

]] Ji b MB +v @h / Bad Debt written off


x +{ i |vx /

(26,809)

8,654

428,842

165,075

(153,863)

16,349,564)

(2,880)

26,360

Provision for diminution in Investment

x E G { /
Profit on sale of Investments

l +i E G { /
Profit on sale of Fixed Assets

x E G { x / Loss on sale of Investments


l +i E G { x/]] Ji b M< +i
Loss on sale of Fixed Assets/Assets written off

(30,977,614)

105,307

(40,283,037)

E {V {ix { {Sx
Operating Profit before Working Capital Changes

Vx / Adjusted for :
]b + +x |{ / Trade and Other Receivables
@h B +O / Loans and Advances
]b B +x n / Trade and Other Payables
{Sx +Vi xEn /

12,574,072

8,580,137

(2,440,410)

1,799,241
1,069,250

Cash generated from Operations

Mix E M E / Tax paid


Sx E Miv (|Ci) x xEn
Net Cash (used in ) from Operating Activities

159

56,024,797

(1,891,634)
11,448,628

4,729,408

397,364

24,022,700

56,422,16

33,970,816

19,063,762

(9,948,116)

37,358,399

2010-11

2009-10

<

<

J. x Miv xEn |
B CASH FLOW FROM INVESTING ACTIVITIES
l +i E Jn / Purchase of Fixed Assets

(71,098)

(843,034)

5,500

5,607,983
-

42,295,925
(1,687,575)

(20,000,000)

(40,000,000)

(50,000,000)

16,170,004

9,644,153

28,650

278,500

5,364,971

6,471,533

l +i E G |{i +M

Proceeds from Sale of Fixed Assets

S+ b x |{i +M (x)
Proceeds from Investments of Mutual Fund (Net)
x / Investment in Shares

+{ix bxS x
Investment in Non-Convertible Debentures

E H b x / Investment in Tax Free Bond


V + / Interest Income
+- / Dividend Income - Shares
+- S+ b /
Dividend Income - Mutual Funds

x Miv (gwU) x xEn


Net Cash from / (used in ) Investing Activities

7,106,010

(33,840,498)

(2,842,106)

3,517,901

6,164,475

2,646,574

3,322,369

6,164,475

5,349

5,675

3,317,020

6,158,800

3,322,369
-

6,164,475
-

M k Miv xEn |
C CASH FLOW FROM FINANCING ACTIVITIES

k Miv x xEn

Net Cash from Financing Activities

xEn xEn i x (E)/ r


Net (Decrease) / Increase in Cash and Cash Equivalents

xEn + xEn i (+l )


Cash and Cash Equivalents ( Opening Balance )

xEn + xEn i (<i ) (ltux-1)


Cash and Cash Equivalents ( Closing Balance ) ( Note - 1)

1.

x]: / Note :
xEn + xEn i xx
Cash and Cash Equivalents comprise :

Ec / Cash in hand
+xSi E E / Bank Balance with Schedule Banks :
S Ji / in Current Account

b E B B E +
Ei b Bb
For De & Bose

xn JE
Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mk. / Membership No.54962
VUbo vksefUhK mkgt / Firm Registration No. 302175E

For and on behalf of the Board

V.{. n+ / J. P. Dua
+vI / Chairman

|n +EE / Prasad Akolkar


ck" xnE B <+ / M D & CEO

{. E. M{i / P. K. Gupta
xnE / Director

ze. mhfUth / D. Sarkar


xnE / Director
+Vi vtrNlu / Abhijit Pashine
fUkvle mraJ / Company Secretary

lx : EEi / Place: Kolkata


nxE / Date: 23rd April,2011

160

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

+xS "B' -- {V
SCHEDULE A - CAPITAL

{V

31.03.2011

31.03.2010

<

<

150,000,000

150,000,000

150,000,000

150,000,000

150,000,000

150,000,000

31.03.2011

31.03.2010

<

<

1,060,253

1,060,253

SHARE CAPITAL

|vEi /
Authorised

100/- . |iE E 15,00,000 vh


15,00,000 Ordinary Shares of < 100/- each

xMi, +nk B nk
Issued, Subscribed and Paid Up

100/- . |iE E 15,00,000 vh


15,00,000 Ordinary Shares of < 100/- each

(i <n E B <E xi E { )
(All the Shares are held by Allahabad Bank and its nominees )

+xS "' -- tIi B +v


SCHEDULE B - RESERVES AND SURPLUS

tIi B +v /
RESERVES AND SURPLUS

x tIi /
General Reserve

+i J E +x / As per last account


P]& {ix |vx E Eh | /
Less: Charge on account of transitional provisions

J xE - 15 E +xiMi /

under Accounting Standard -15

206,842
853,411

B x tuFt

Profit and Loss Account

161

322,781,161

294,830,362

323,634,572

295,890,615

162

/ Previous Year

Computer Software

fUkvgwxh mtxugh

INTANGIBLE ASSETS

+i +i

(A +B)

51,714,268

42,000
42,000
51,176,500

213,235
48,465,116
51,134,500

Motor Vehicles

]x

17,295,894

609,308

Office Equipments

E ={Eh

Furniture and Fixtures

xS B CS

Plant and Machinary

{] B x

ASSETS GIVEN ON
LEASE

V { |nk +i

30,346,679

595,043
2,669,384

Motor Vehicles

]x

1,593,556

480,785

843,034

71,098

71,098

71,098

66,643

4,455

Additions

1,380,802

337,671

337,671

337,671

337,671

Adjustments

51,176,500

42,000
42,000
50,909,927

213,235
48,465,116
50,867,927

17,295,894

609,308

30,346,679

595,043
2,402,811

1,322,528

485,240

As at
31.03.2011

E E / GROSS BLOCK
{vx
Vx 31 S 2011 E

Office Equipments

E ={Eh

Furniture and Fixtures

xS B CS

ASSETS OTHER THAN


ON LEASE

V E +iH +x +i

01.04.2010 E
As at
01.04.2010

FIXED ASSETS

TANGIBLE ASSETS

bq;o +i

Particulars

Schedule - C

+xS "' -- l +i

Schedules Forming Part of the Accounts

J E M E { +xS

34,563,181

8,800
8,800
33,451,355

213,235
31,925,420
33,442,555

3,033,976

574,310

28,103,899

29,581
1,517,135

335,051

Adjustments

163,669

8,800
8,800
195,826

187,026

3,033,976

574,310

28,103,899

86,110
1,369,110

996,274

286,726

31.03.2011 E
As at
31.03.2011

1,275,495 33,451,355

17,600
17,600
335,051 33,312,130

213,235
31,925,420
335,051 33,294,530

56,529
187,026 335,051

106,183

24,314

For the
Period

/ DEPRECIATION
+v
Vx

1,225,142

262,412

31.03.2010 E
As at
31.03.2010

+E <xx .
/ (In <

34,998

2,242,780

565,462
1,152,249

368,414

218,373

As at
31.03.2010

17,725,145

24,400
24,400
17,597,797

33,200
33,200
17,725,145

16,539,696 16,539,696
17,573,397 17,691,945

14,261,918 14,261,918

34,998

2,242,780

508,933
1,033,701

326,254

198,514

As at
31.03.2011

x E /NET BLOCK
31.03.2011 E
31.03.2010 E

(h. )

AllBank Finance Ltd.

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

Q U A N T I T Y

BOOK

VALUE

AllBank Finance Ltd.

MARKET

VALUE

E lli

E lli E lli
31.03.2010

31.03.2011

E lli

As at
31.03.2011

As at
31.03.2010

As at
31.03.2011
<

As at
31.03.2010
<

n / Rate

10,000,000

10.0153

10,014,098

10,012,300

10.0654

14,533

10.1052

20,492,128

31.03.2011

ix x +xE]b / CURRENT INVESTMENT - Unquoted


S+ b x] /

31.03.2010

E lli
31.03.2011

As at 31.03.2011
<

/ Value
<

MUTUAL FUNDS UNITS

+<+<+< |b B B
ICICI Prudential MF

999,880.011

+vE +xi Vx - 1
lMi
Half Yearly Interval Plan -I,
Institutional Dividend

BSbB <E b

IDFC Income Fund


x xV b- /
Money Manager FundE / Monthly Dividend
1,443.872 1,000,000.000
14,439
+] ] ] b /
Ultra Short Term Fund E /Monthly Dividend 2,027,879.540
20,431,233

BSbB }]M ] -B] {x


HDFC Floationg Rate-ST Plan
nxE / Daily Dividend

496,349.963

5,003,654

+<+<+< |b }C <E {x

ICICI Prudential Flexible Income plan


nxE / Daily Dividend

189,274.698

20,012,961

2,000,000.000

20,000,000

999,751.871

10,008,616

744420.041

7,503,605

19,986.861

20,013,621

15.018

19,074

x< i +ibbb {+=]


Birla Sunlife Qtly IntervalDividend Payout
V-4 / Series 4

]{]x <b +]
] b b

Templeton India Ultra


Short Bond Fund
nxE / Daily Dividend

E]E }] M ]

Kotak Floater Long Term


nxE / Daily Dividend

x xV b

Reliance Money Manager Fund


nxE / Daily Dividend

]+< ]V Bb]V b

UTI Treasury Advantage Fund

163

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

Q U A N T I T Y

AllBank Finance Ltd.

BOOK

VALUE

E lli

E lli E lli
31.03.2010

31.03.2011

E lli

As at
31.03.2011

As at
31.03.2010

As at
31.03.2011
<

As at
31.03.2010
<

31.03.2011

31.03.2010

MARKET

VALUE

E lli
31.03.2011

As at 31.03.2011

n / Rate
<

/ Value
<

i / Quarterly Dividend
]+< ]V Bb]V b
UTI Treasury Advantage Fund
5,186.259
nxE / Daily Dividend
E S x / Total Current Investment

nPv x-+xE]b
G |VC] . /

30,006.905

5,187,369

30,013,330 1,000.2141

5,187,369

35,633,041 122,587,161

/ LONG TERM INVESTMENT - Unquoted SHARES

Vikram Projects Ltd.

85,500

85,500

2,992,500

380,923

380,923

3,809,230

3,809,230

119,700

119,700

1,197,000

1,197,000

58,300

58,300

874,500

874,500

150,000

150,000

1,500,000

1,500,000

25

25

250

250

650,000

650,000

6,500,000

6,500,000

Equity Shares of < 10/- each, fully paid


n E / Divya Chem

50

50

1,538

1,538

50 Equity Shares (Cost - < 30.76 each)


x ] / Nirmal Metal

10,000

10,000

851,900

851,900

. 10/- |iE E <C] , {h nk


(|iE E | . 25/-)

2,992,500

Equity Shares of < 10/- each, fully paid


(Premium of < 25/- each)

|i{ ] . /

Harpartap Steel Ltd.

. 10/- |iE E <C] , {h nk


Equity Shares of < 10/- each, fully paid

E <x Bb ] .
. 10/- |iE E <C] , {h nk
Moulik Finance & Resorts Ltd.
Equity Shares of < 10/- each, fully paid
i { . /
Ritesh Polymers Ltd.

. 10/- |iE E <C] , {h nk


(|iE E | . 5/-)
Equity Shares of <10/- each, fully paid
(Premium of < 5/- each)

EM ] . /

Kalinga Cements Ltd.

. 10/- |iE E <C] , {h nk


Equity Shares of < 10/- each, fully paid

V+ BO EE .

Zuari Agro Chemicals Limited

. 10/- |iE E <C] , {h nk


Equity Shares of < 10/- each,fully paid

nx M . /

Dewan Sugars Limited

. 10/- |iE E <C] , {h nk


50 <C] (|iE E 30.76)
10,000 <C] (|iE E 85.19)
10,000 Equity Shares (Cost - < 85.19 each)

164

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

Q U A N T I T Y

AllBank Finance Ltd.

BOOK

VALUE

E lli

E lli E lli
31.03.2010

31.03.2011

E lli

As at
31.03.2011

As at
31.03.2010

As at
31.03.2011
<

As at
31.03.2010
<

31.03.2011

31.03.2010

MARKET

VALUE

E lli
31.03.2011

As at 31.03.2011

n / Rate

/ Value

<

<

x S VM /
New Century Leasing

106,000

106,000

2,507,960

2,507,960

40,000

40,000

757,200

757,200

Regent Chemicals

28,000

28,000

795,200

795,200

28,000 EquityShares (Cost - < 28.40 each)


MVi ] /
Gujrat Filaments

25,000

25,000

1,017,500

1,017,500

126,200

126,200

4,181,006

4,181,006

1,400

1,400

2,000,000.000

20,000,000

106,000 <C] (|iE E 23.66)


106,000 Equity Shares (Cost - < 23.66 each)
x < +x / New Era Urban

40,000 <C] (|iE E 18.93)

40,000 Equity Shares ( Cost - < 18.93 each)

V] EE /

28,000 <C] (|iE E 28.40)

25,000 <C] (|iE E 40.76)

25,000 EquityShares( Cost - < 40.70 each)

/
Solar Busiforms

126,200 <C] (|iE E 33.13)

126,200 Equity Shares( Cost - < 33.13 each)

x {xM .
1,400 <C] (x)

Niwas Spinnings Ltd.


1,400 Equity Shares (Bonus)

S+ b x]

MUTUAL FUND UNITS

x< B B
B]{ +<BxB] V -Ol
Birla Sunlife MF
FTP Inst Series CX - Growth

10.0294 20,058,800

bB{ EE B B
E - 25 b-Ol

DSP Blackrock MF
Focus 25 Fund - Growth

250,000.000

2,500,000

2,000,000.000 2,000,000.000

20,000,000

10.5110

2,627,750

10.7462

21,492,400

10.0437

19,083,030

BSbB B B
Cb S] {x
13B btao 10 - Ol
Cb S] {x
370 r=l btao 11(4) - Ol
HDFC MF
Fixed Maturity Plan
13M Mar 10 - Growth

20,000,000

Fixed Maturity Plan


370D Mar 11(4) - Growth

1,900,000.000

19,000,000

165

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

Q U A N T I T Y

AllBank Finance Ltd.

BOOK

E lli

E lli E lli
31.03.2010

31.03.2011

E lli

As at
31.03.2011

As at
31.03.2010

As at
31.03.2011
<

As at
31.03.2010
<

31.03.2011

VALUE

MARKET

VALUE

E lli

31.03.2010

31.03.2011

As at 31.03.2011

n / Rate
<

/ Value
<

B B
Cb Vx b
XIX - V 11- Ol
Reliance MF

2,000,000.000

20,000,000

10.0508

20,101,600

Fixed Horizon Fund XIX - Series 11 - Growth

B+< BB
b] b V
370 r=l - 9 - Ol
SBI MF

2,000,000.000

20,000,000

10.1704

20,340,800

Debt Fund Series 370 Days - 9 - Growth

={-M

/ SUB-TOTAL

128,485,784

46,985,784

nPv x-+xE]b
LONG TERM INVESTMENT - Quoted SHARES

B <x .
BCL Financial Services Ltd.

6,400

6,400

64,000

64,000

48,600

48,600

1,944,000

1,944,000

20

1,100

1,100

1,075.00

21,500

2,290

130,049

130,049

97.75

223,848

50,000

1,687,575

1,687,575

25.35

1,267,500

500

500 50,000,000

50,000,000

Not Quoted

30

30 30,000,000

30,000,000

Not Quoted

. 10/- |iE E <C] , {h nk


Equity Shares of < 10/- each, fully paid

E ] .

Malvika Steels Ltd.

. 10/- |iE E <C] , {h nk


Equity Shares of < 10/- each, partly paid

(|iE E | . 30/-) / (Premium of < 30/- each)


B . /ACC Ltd.
20
. 10/- |iE E <C] , {h nk
Equity Shares of < 10/- each

]] ] ./ Tata Tea Ltd.


. 56.79 |iE E 2290 <C]

2,290

2290 Equity Shares at cost of < 56.79 each

BxBS{ . / NHPC Ltd.


. 10/- |iE E <C] , {h nk

50,000

Equity Shares of < 10/- each

bS / DEBENTURES
]] E{] . / Tata Capital Ltd.
. 1,00,000/- |iE E Bx b
NCDs of < 1,00,000/-each

E{]

Reliance Capital Ltd.

1,000,000/-

|iE E Bx b

NCDs of < 1,000,000/-each

166

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

Q U A N T I T Y

AllBank Finance Ltd.

BOOK

VALUE

MARKET

VALUE

E lli

E lli E lli
31.03.2010

31.03.2011

E lli

As at
31.03.2011

As at
31.03.2010

As at
31.03.2011
<

As at
31.03.2010
<

n / Rate

100

100 10,000,000

10,000,000

200

20,000,000

500

500 50,000,000

50,000,000

Not Quoted

500

500 50,000,000

50,000,000

Not Quoted

31.03.2011

E lli

31.03.2010

31.03.2011

As at 31.03.2011

/ Value

<

<

]{] <x E.
Sriram Transport Finance Co. Ltd.

1,000,000/-

Not Quoted

|iE E Bx b

NCDs of < 1,00,000/-each

{] <VxM .

Patel Engineering Ltd.

1,00,000/-

Not Quoted

|iE E Bx b

NCDs of < 1,00,000/-each

b / BONDS
<b <x]ES <x E. .
1,00,000/- |iE E ECi b
India Infrastructure Finance Co.Ltd.
Tax Free Bonds of < 1,00,000/-each

<bx <x E{x


1,00,000/- |iE E ECi b

Indian Railway Finance Corporation


Tax Free Bonds of < 1,00,000/-each

={-M / SUB TOTAL


E +v E x / Total Long Term Investment

213,826,724 193,826,724
342,312,508 240,812,508

+xS b x

E lli / As at

SCHEDULE D INVESTMENT

S x +xri / Current Investment Un-Quoted


P]B x i |vx / Less Provision for Diminution in Investment
={ M / Sub Total
nPv x +xri / Long Term Investment Un-Quoted
P]B x i |vx / Less Provision for Diminution in Investment
={ M / Sub Total
nPv x =ri / Long Term Investment Quoted
P]B x i |vx
Less Provision for Diminution in Investment
={ M / Sub Total

vqKo gtud

/ Grand Total

167

BOOK

VALUE

E lli / As at

31.03.2011

31.03.2010

<

<

35,633,041

122,587,161

35,633,041

122,587,161

128,485,784

46,985,784

26,985,770

26,985,771

101,500,014

20,000,013

213,826,724

193,826,724

2,173,073
211,653,651

2,173,073
191,653,651

348,786,706

334,240,825

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

+xS "<' -- v nxn

lli

/ As on
31.03.2011

SCHEDULE E - SUNDRY DEBTORS

lli

/ As on
31.03.2010

<

v nxn
a)

<

/ SUNDRY DEBTORS

U +vE +v E @h

Debts outstanding for a period exceeding six months

yr;Cq; YJk yAu btlu dY


Unsecured and considered good

6,005,077
57,632
6,062,709

6,162,896
6,162,896

6,005,077
57,632

6,162,896
-

mkr=" btlu dY
b)

Considered doubtful
+x @h / Other Debts

P]B : nMv @h i |vx


Less : Provision for doubtful debts

lli

+xS "B' -- lfU=e YJk cfU NuM

/ As on
31.03.2011

SCHEDULE F CASH AND BANK BALANCES

lfU=e YJk cfU NuM /

/ As on
31.03.2010

<

<

CASH AND BANK BALANCES

htufU\z NuM /Cash In Hand


ylwmqra; E fuU vtm NuM /

5,349

5,675

3,317,020

6,158,800

50,000,000

50,000,000

53,322,369

56,164,475

Balances with Scheduled banks

atq Ft;u b / In Current Accounts


begt=e sbt Ft;u buk / In Fixed Deposits Accounts

lli

+xS "V' -- yg S ytr;gtk

/ As on
31.03.2011

SCHEDULE G OTHER CURRENT ASSETS

rfUhtY vh xtfU /

lli

Stock-On-Hire

lli / As on
31.03.2010

<

<

11,911,409

13,435,519

2,523,617
9,387,792

2,720,908
10,714,611

DxtYk & yr;=ug rJteg Cth


Less : Overdue Finance charges

P]B : EB { nMv ]E i |vx/


Less : Provision on doubtful stock -on-hire

rlJuN vh Wvra; gts

9,387,792

10,714,611

Interest accrued on Investment

4,795,876

2,655,822

12,430,689

6,867,934

315,769

7,468,900

begt=e sbt vh Wvra; gts /


Interest accrued on Fixed Deposit

tg c{tufUhus/Brokerage Receivable
yg/Others

168

51,000

51,000

17,593,334

17,043,656

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

lli

+xS "BS' -- @h B +O

lli

/ As on
31.03.2011

SCHEDULE H LOANS AND ADVANCES

/ As on
31.03.2010

<

<

@h B +O/LOANS AND ADVANCES

xEn +l {h +l |{i EB Vx
i Vx +O
Advance recoverable in cash or in kind or for
value to be received

+i-E{] V/ Inter-corporate Deposit


P]B : nMv V i |vx
Less : Provision on doubtful deposit

1,272,386

1,467,370

200,000

200,000

200,000

200,000

+O +E, i { E] M E
Advance Income Tax , Tax Deducted at Source

+O +xM E / Advance Fringe Benefit Tax


+O E / Advance Service Tax
|{ V E b / Interest Tax Refund Receivable
{VMi i |nk +O
Advance Paid for Capital Goods

101,404,013

96,836,338

90,633

97,033

10,635

1,671,500

101,372

101,372

1,464,000

1,464,000

P]B : nMv +O i |vx


Less : Provision on doubtful advance

1,464,000

1,464,000

+vE E @h B @h E ={Si V
Loan to Officers and Interest Accrued on Loans

690,502

103,626,149

100,864,115

lli

+xS "+<' -- S niB

lli

/ As on
31.03.2011

SCHEDULE I - CURRENT LIABILITIES

S niB /

747,110

/ As on
31.03.2010

<

<

CURRENT LIABILITIES

v xn ( B +x)
Sundry Creditors (Expenses and Others)

7,638,178

|ii V / Security Deposit

60,831

60,831

7,699,009

6,534,534

lli

+xS "V' -- |vx

lli

/ As on
31.03.2011

SCHEDULE J - PROVISIONS

/ As on
31.03.2010

<

|vx / PROVISIONS

xk / Retirement Benefits U]] xEnEh / Leave Encashment


OS] / Gratuity
+xM E/Fringe Benefit Tax
+ E / Income Tax
+xVE +i / Non Performing Assets

6,473,703

338,127
528,552

169

<

220,882
866,679

808,459

1,029,341

51,000

51,000

42,253,862

56,053,862

16,478,865

16,478,864

59,650,406

73,613,067

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

+xS "E' -- x +

lli

lli

/ As on
31.03.2011

SCHEDULE K INVESTMENT INCOME

/ As on
31.03.2010

<

x + / INVESTMENT INCOME
b BJk bS { V
Interest on Bonds and Debentures
+- / Dividend Income - Shares
+ - / Dividend Income -

<

17,691,972
28,650

11,055,891
278,500

S+ b x] ({ x) /

Mutual Fund Units ( Trade Investments )


x E G { / Profit on sale of Investments
x E G { x / Loss on sale of Investment

5,364,971
153,863
153,863

6,558,693
16,349,564
(26,360)

16,323,204

r:h ytr;gtku fuU rlvxtl vh ttC


Profit on disposal of Fixed Assets

+xS "B' -- |{i V

2,880

23,242,336

34,216,288

lli

lli

/ As on
31.03.2011

SCHEDULE L INTEREST RECEIVED

/ As on
31.03.2010

<

<

V + / INTEREST INCOME
n V { V (E)
Interest on Fixed Deposit(Gross)
[ ]bB-618,086

(Mi -

6,180,841

5,617,941

557,989/-)]

[TDS - 618,086/- (Pre. Yr. - 557,989/-)]

] @h { V / Interest on Staff Loan

+xS "B' -- +x +

79,008

78,541

6,259,849

5,696,482

lli

lli

/ As on
31.03.2011
<

SCHEDULE M : OTHER INCOME

+x + / OTHER INCOME
]x E E M |vx : / Provision written back for :
+x{V +i i / Non Performing Assets
/ Expenses
x +{ / Diminution in Investment

/ As on
31.03.2010
<

1,681,929
76,988

1,278,142
6,750

26,809

v + / Miscellaneous Income
{i +v E n / Prior Period Item

303,077
2,061,994

+xS "Bx' -- fUtrbofUt vh gg

lli

/ As on
31.03.2011
<

SCHEDULE N : PERSONNEL EXPENSES

EE Mi / PERSONNEL COST
ix / Salaries
xv +nx B |xE |
Provident Fund Contribution and Admn. Charges
SEi / Medical Expenses
+x /Others

170

(165,075)

(138,266)
103,804
610,342
1,860,772

lli

/ As on
31.03.2010
<

3,572,635

2,552,094

328,562
247,143
769,151
4,917,491

236,091
321,771
293,671
3,403,627

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

{i

+xS "ytu' -- |rxf B +x


SCHEDULE O : ADMINISTRATION AND OTHER EXPENSES

j B x

/ Travelling and Conveyance

fUtN B ti

/ Light and Electricity

{iE B {jEB

/ Books and Periodicals

ph B Jx O
mkJ"ol

/ Printing and Stationery

/ Business Promotion Expenses

bE JS B ]x

/ Postage and Telephone

ES |Ih / Staff Training


i B +xIh

/ - Plant and Machinery

- +x / - Others

/ Year ended
31.03.2010
<

533,557

470,794

252,643

273,515

48,254

50,671

159,353

110,552

2,208

9,573

301,484

237,950

13,324

66,202

79,126
404,134

/ Insurance Charges

Y{x B |S

{i

/ Repair and Maintenance

- j B x
|

/ Year ended
31.03.2011
<

/ Advertisement and Publicity

40,035
483,260

383,684

423,719

13,128

12,440

314,168

92,459

1,096,035

1,112,029

55,000

62,500

+nx B ni E

/
Subscription and Membership Fee

xnE E `E E E

/ Directors Sitting Fees

J{IE E {E

/ Auditors Remuneration

- J{I
- E

/ - Audit Fee

J{I E

- J{IE

25,000

/ - Tax Audit Fee

27,575

7,000

7,721

E j B +x +iE J {I E

- Auditors Travelling and Others

B { E

/ Internal Audit Fees

B { E

/ Profession & Consultancy Fee

102,342

134,342

100,209

135,505

80,000

22,151

115,166

342,968

330,246

273,694

805,751
3,928

787,702
2,736

55,840

17,957

168,236

273,038

67,405

37,902

{ +v / Prior Period Expenses

3,086,370

=h YJk fUh / Rates and Taxes

1,265,242

1,746,193

8,654

428,842

9,326,189

7,058,497

vE

/ Legal Expenses

xnE E j YJk b `E { /
Directors Travelling and Board Meeting Expenses
E | / Bank Charges
v

/ Miscellaneous Expenses

E Fao

/ Office Expenses

+{Ji Vb +i

/ Leased Assets Written Off

l +i E G { x
Loss on disposal of Fixed Assets

+v @h +{Ji / Bad Debts written off


171

J E M E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

+xS { : i{h J xi
(E) k h i Ex E +v
k h E J xE + E{x +vx, 1956 E
Mi |vx E +x i EB Vi + {{Mi Mi
{{] { +vi * J xi, V iE +xl xn] x ,
+xE + xi: Ei J ri E +x{ * n +
|{ iE x MB + + E J, V iE +xl
xn] x , ={Si +v { E M *

Schedule P : Significant Accounting Policies:


(a) Basis of preparation of Financial Statements
The financial statements are prepared in accordance with
applicable accounting standards and relevant provisions of
the Companies act,1956 and are based on the historical cost
conventions. Accounting policies unless specifically stated to
be otherwise, are consistent and are in consonance with
generally accepted accounting principles All expenses and
income to the extent considered payable and receivable, unless
stated otherwise, have been accounted for on accrual basis.

(J) |CEx E |M
k h i Ex i B |vx E +Ei i V B
+xx + |CEx Ei V {] E M< +i + ni+
E E E |i Ei + ix {j E iJ E +EE
ni+ il +i + E nx {] E M< + + E
vi |E]Eh *

(b) Use of Estimates

+EEi+ E i nV E Vi V < i E x E
ni ={Mi M + = E Si |CEx E V Ei
* V {h Yi/i i = iE {h +
|CEx E +i E +Yi E Vi *
(M) htsJ yrCttl
(i) vxTxt rJtvtuMK&
1.4.2001fUtu gt RmfuU vtt; thkC tuFt yJrD fuU =tihtl mb;
vxTxu fUe yr;gt fUu mkckD b CtJ b ytRo tes vh tuFt
btlfU 19 (YYm-19) ttdq ni> akqrfU fkUvle lu 1.4.2001 fUtu
y:Jt RmfuU vat; fUtuRo tes mkJef]U; lnek fUe y;& YYm19 fkUvle vh gtug ln ni>

Contingencies are recorded when it is probable that a liability


will be incurred and the amounts can reasonably be estimated.
Differences between the actual results and estimates are
recognized in the year in which the results are known /
materialized.

tes fUhth fuU ylwmth =ug r;r: E tes rfUhtY { rJath


E Vi *

Lease Rentals are considered on the due dates in terms


of lease agreements.

Cth;eg rhsJo cikfU tht DturM; rJJufUmb; btl=kzt fuU yk;do;


snt tez ytr;gtk ylwvgtug ytr;gt (YlveY) b Jdeof]U;
tes rfUhtY vh rJath lnek rfUgt dgt>

Lease Rentals are not considered where Leased Assets


have been classified as Non Performing Assets (NPA)
under the Prudential Norms announced by Reserve Bank
of India.

il{ E{x x E 2005 h-* S] E E {


{VEi E il SE E{x + E< BS{ B VM
E x E , +iB =x M EM k l E
{ +{x < { E n *

However, the Company had registered itself as a Category


I Merchant Banker in the year 2005 and had surrendered
NBFC license since it discontinued HP and Leasing
business.

(ii) V + E +Yx E il |V n E +v {
M x Vx E E iE +x{i
+v { E Vi *
(iii) + E i +Yi E Vi V <E |{i E
+vE l{i Vi *
(P) yat ytr;gtk

The preparation of financial statements require management


to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures relating to
contingent liabilities and assets as at the Balance Sheet date
and the reported amounts of income and expenses during the
year.

(c) Revenue Recognition


(i)

Lease Finance
The Accounting Standard 19 (AS19) on Leases came
into effect in respect of all assets leased during accounting
periods commencing on or after 1.4.2001. Since the
Company has not sanctioned any lease on or after
1.4.2001, the AS19 is not applicable to the Company.

(ii)

Interest income is recognized on a time proportion basis


depending upon the amount outstanding and the rate
applicable and to the extent considered realizable.

(iii) Income on account of dividend is recognized when the


right to receive is established.
(d) Fixed Assets

fkUvle tht :tvlt vh rfY dY gg mrn; yat ytr;gt fUt


vkqsefUhK ttd; vh ntu;t ni>

172

Fixed Assets are capitalized at cost inclusive of installation


expenses as incurred by the Company.

J E M E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

(R) vxTxu vh te dRo ytr;gtk


f{Ug fUe dRo YJk vxTxu vh =e dRo ytr;gt fUt vqksefUhK :tvlt
ttd; YJk :tvlt gg vh rfUgt dgt ni>
(S) bqgtm
(i) tes vh =e dRo ytr;gt fuU yttJt yg ytr;gtk &
fkUvle yrvrlgb,1956 fUe ylwmqae XIV b rlvtorh; =ht vh
mev huFt Ktte vh bqgtm fUt tJvx rfUgt st;t ni>
+i +i E {S E +v +l n ={M +v
{S E i +{IEi E +v v J |h
{vi E Vi *
(ii)
vxTxu vh =e dRo ytr;gtk &
Cth;eg ml=e tuFtfUth mk:tl tht sthe IYfUtWrxkd VUtph
terskdO vh dtRzum ltux fuU ylwmth tes vh =e dRo ytr;gt vh
bqgtm fUt tJvx rfUgt st;t ni>
fkUvle yrvrlgb, 1956 fUe ylwmaq e XIV b rlvtorh; =ht vh meve
huFt Ktte vh mb; ytr;gt (vxTxu vh =e dRo Wl ytr;gt fUtu
rbttfUh rsn ylwvgtug htrN fuU v b JdeofU] ; rfUgt dgt ni) vh
meve huFt Ktte vh bqgtm =tl rfUgt st;t ni>
(U) rlJuN

(e) Leased Assets


Assets purchased and given on lease are capitalized on
installation at cost and installation expenses.
(f)

Depreciation

(i)

Assets other than given on Lease:


Depreciation is provided under Straight Line Method at
the rates and in the manner as per Schedule XIV of the
Companies Act, 1956.
Intangible Assets are amortised over a period of five years
or in lesser period if useful life is lower than five years on
straight line basis.

(ii)

Assets given on Lease:


Depreciation on Leased Assets is provided as per the
Guidance Note on Accounting for Leases issued by the
Institute of Chartered Accountants of India.
Depreciation on all the fixed assets (including Leased
Assets classified as Non Performing Assets) has been
provided on straight line method at the rates prescribed
in Schedule XIV of the Companies Act, 1956.

(g) Investment

=eDo yJrv fuU rlJuN fUt ttd; vh bqg rlvhK rfUgt st;t
ni> JMo fUe mbtrt vh rlJuN fuU bqg tm nu;w tJvx Yumu
rlJuN fuU bqg b fUbe ntulu vh rfUgt st;t ni>

Long Term Investments are valued at cost. Provision for


diminution in value of investment is made for decrease in
value of such investments if permanent in nature as at
the end of the year.

J;obtl rlJuN fUt bqgtkfUl gql;h ttd; YJk ctsth bqg vh


rfUgt st;t ni>
sntk rlJuN mqaec fUh rtgt ntu vhk;w ctsth fUtuxuNl WvtD
l ntu Yumu btbtu b rlJuN fUt bqg h. 1 r; fkUvle rtgt
stYdt>

Current Investments are valued at the lower of cost and


market value.

rJNuM gtgttg (r;Cqr; tul-=ul mkckDe yvhtv fUt rJathK)


+vx, 1992 fuU yk;do; drX; rJNuM gtgttg, bwcRo fuU
yt=uN fuU ylwmhK b 0 Je.ce. =umtRo Ft;t fuU rlvxtl mu
yrso; Nught fuU btbtu b Rm fUth yrso; Nugt fUe ttd; fUtu
Yumu rlKog mu vqJo 0 Je.ce. =umtRo mu cfUtgt rlJt htrN vh
rtgt dgt ni> Rm rlJuN fUtu =eDofUtrtfU rlJuN btlt dgt ni>

In the case of shares acquired in settlement of M/s V B


Desai A/c pursuant to the Order of The Special Court,
Mumbai, constituted under The Special Courts (Trial of
Offences relating to Transactions in Securities) Act, 1992,
the cost of acquisition of the Shares so acquired have
been taken at the net amount due from M/s V B Desai,
prior to such ruling. This investment has been considered
as Long Term Investment.

In cases where Investments are listed but market


quotations are not available, the value of the investment
has been taken at Re. 1/- per Company.

z S+ =i{n Vx Vxv BE +vE ,


x E nPEx x x M *
(V) rJJufUvqKo btl=kz

Investments made in various Mutual Funds where


duration of scheme exceeds one year have been
considered as Long Term Investment.
(h) Prudential Norms

grv fUkvle rfUhtgt-Fhe= YJk terskd gJmtg lnek fUh;e,


rVUh Ce V-E |V ytg yrCttl, ytr; JdeofUhK YJk
tJvtl nu;w dih crfkUd rJteg fkUvrlgt nu;w rJJufUvqKo btl=kz fuU
mkckD b Cth;eg rhsJo cfU tht sthe rl=uoNt fUt ylwvttl
rfUgt dgt ni>
173

Although the Company is not doing Hire Purchase and


Leasing business yet the Directions issued by the Reserve
Bank of India regarding prudential norms for Non-Banking
Financial Companies for income recognition, asset
classification and provisions have been followed,
wherever found applicable.

J E M E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

(Z) rJrJv =ul=th &


=ug/tg htrN turfUl rsmu tes, rfUhtgt Fhe=, ;];eg vG
ytr= fuU fUthK JMo fUe mbtrt vh yCe t; ntult ni, fUtu
rJrJv =ul=th Ft;u b ltbu ztt;u nwY mkcrD; ytg/ytr; Ft;t
b sbt fUhlt ni>
(\) ylwvgtug ytr;gt nu;w tJDl &
rfUhtgt Fhe=, tes ytr= mu 12btn mu yrDfU rfU; =ug ntulu
fuU btbtu b ytih +i fUthvtuhux sbt mu 6 btnt mu yrvfU
+v nu;w gts =ug hn;t ni ;tu ytr; ylwvgtug btle stYde
ytih Ft;t b fUtuRo ytg ln btle stYde>
ttC YJk ntrl Ft;u fuU ltbu zttfUh ylwvgtug ytr;gt nu;w
tJvtl rfUgt st;t ni>
(]) +i E +xVE x
E +i E i +xVE x Vi V = +i E Jx
E Mi M +vE Vi * V +i
E +xVE E { +xvi E Vi = +xVE
x E B x J |i E Vi * n
+xxi M {ix M i { J
+P +Yi +xVE x E |iii E Vi
(`) ES
ES ES u |nx E M< E ={Si
i * xvi +nx Vx+ l xv +nx E
+Yx +nx nx { E Vi *
{i Vx V OS] + +E xEnEh E
+iMi nP EE ES EE iExE E |M
EE n E ix { E {i { xvi
E Vi *
(b) + { E
ix + +lMi E nx i E E |vx E Vi *
S E E |vx |V E n + E Exx E |M
Ei B E M + { E Vi * +i E Eh
=i{z +lMi E +i + niB, Vx {i +v
|iii E V Ei , E +Yx +vxi E n
+ E Exx E |M Ei B E Vi * +lMi E
E i iE +Yi x E Vi V iE <E
|iix E v {{i +x x *
(f) |vx, +EEiB + +EE +i
{x {{i { EB MB |CEx |vx E i
+Yi E Vi V {U E P]x E B ix
ni xi + < i E x E vx E
Mx M il ni E E v BE x
+xx M V Ei * +EE +i E k h
x i +Yi E Vi + x |E] E Vi *
+EE ni+ i |vx x E Vi + =x ]{{h
E { |E] E Vi *

(i)

Sundry Debtors
Amount due/ receivable but yet to be received at the end
of the year on account of Lease, Hire Purchase, third
parties etc. are debited to Sundry Debtors Account and
credited to respective income/ assets account.

(j)

Provision for Non Performing Assets


In case of Installments due for more than 12 months from
Hire Purchase, Lease, etc and in case of interest
remained due for more than 6 months from Inter
Corporate Deposit, the asset is treated as Non Performing
Assets and no income is considered in the accounts.
Provision for a Non-Performing Asset is made by debiting
Profit & Loss Account.

(k) Impairment of Assets


An asset is treated as impaired when the carrying cost of
assets exceeds its recoverable value. An impairment loss
is charged to profit and loss account in the year in which
an asset is identified as impaired. The impairment loss
recognized in prior accounting periods is reversed if there
has been a change in the estimate of recoverable amount.
(l)

Employee Benefits
Employee benefits accrued in the year are for services
rendered by the employees. Contribution to defined
contribution schemes such as Provident fund is
recognized as and when incurred.
Long term employee benefits under defined benefits
scheme such as gratuity and leave encashment are
determined at close of the year at present value of the
amount payable using actuarial techniques.

(m) Taxes on Income


Provision for tax is made for both current and deferred
tax. Current Tax is provided on the taxable income using
the applicable tax rates and tax laws. Deferred tax assets
and liabilities arising on account of timing difference which
are capable of reversal in subsequent periods are
recognized using tax rates and tax laws which have been
enacted or substantively enacted. Deferred tax are not
recognized unless there is sufficient assurance with
respect to the reversal of the same in the future years.
(n) Provisions , Contingencies and Contingent Assets

174

Provisions involving substantial degree of estimation in


measurement are recognized when there is a present
obligation as a result of past events and it is probable
that there will be an outflow of resources and a reliable
estimate can be made of the amount of the obligation.
Contingent Assets are neither recognized nor disclosed
in the financial statement . Contingent Liabilities are not
provided for and are disclosed by way of notes.

J E M E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

ylwmqae C & tuFt vh rxvrKgtk


Schedule Q Notes on Accounts :
1. ytfUrbfU =ug;tYk rslfuU rtY tJ"tl lnek rfUgt dgt ni & Contingent liabilities not provided for :
(fU) rJrCl yveteg tr"fUhKt fuU mbG tkrc; btbtt, sntk fkUvle mVUt;t fUe yvuGt fUh;e ni, fuU mkck" b rJJtr=; ytgfUh YJk
gts fUh =ug;tYk>
(a) Disputed Income Tax liability in respect of matters pending before various Appellate authorities where the Company expects
to succeed.
(` ttF ) / (` In Lakh)
31.03.2011
/ Income-Tax

bqgtkfUl JMo
Assessment Year

ytgfUh

31.03.2010
/ Income-Tax

ytgfUh

2002-03

344.18

2003-04

627.62

620.55

2004-05

70.52

109.79

2005-06

23.44

38.06

2006-07

15.32

29.99

2007-08

55.18

66.47

2008-09

8.07

E / Total

800.15

1,209.04

E ni E +Ec {ix +vx +{ { BBB +


+i] +i& V {IE E {I +l r {i +n E
Eh + *
(J) fkUvle fuU rJh } K fuU v b JefUth ln rf Y dY =tJu&
`.1175.76 ttF (vqJo JMo h. 1175.76 ttF)
(M) E{x E E ES u ix vx i n < E]
BE ] SE n E M< * il{ =E B |vx
x E M CE |vx E i E =E {I Vi
* <E +iH E xMh *

The change in the figure of the tax liability is due to order passed
against or in favour of ABFL , partly deposited and aggrieved,
preferred appeal.
(b) Claims against the Company not acknowledged as
Debts : ` 1,175.76 lakh. ( Previous Year `1,175.76 lakh)
(c)

A writ Petition has been filed by some employees of the


Company in Delhi High Court for Salary revision. However,
the same has not been provided for as the management
feels that it has a good case. Moreover, the amount
remains un-quantified.

(P) E{x x +Mi 2008 +] EE Bb |VC] . E


+<{+ < i b xV E E E* =H E{x E BE
xE] |i{v x E{x + <E |] E r x
BE n nJ E n il S] E, ij xnE +
J{IE il ] E {] x n* < v
+ E <x E r E< Ii{i +l E x
xi *
(R) BE |<] ]b E{x u =x =c x b{] E. .
E E G EB Vx i BE nJ E M * Exx
E +x E{x E E +xI h x *

(d) The Company had acted as lead manager of Austral


Coke & Projects Limited IPO issue in August,2008. A close
competitor of the said company filed civil suits against
the company and its promoters and also made Merchant
Bankers , Independent directors, Auditors and Solicitors
as party to the suit. There is no quantification of any
compensation or amount against ALLBank Finance Ltd.

2.

2.

btlleg rJNuM gtgttg fuU yt=uNtlwmth bu.Je.ce. =umtRo tht


13.05.1992 fUtu ytpt cfU VUtRlum rt. fUtu mtvu dY Nught
fUtu fkUvle fuU vG b Nught b mkvrt fUt vqKo yk;hK btlt dgt>
;=lwmth, Nught fUe mwvw=ode fUe ;theF mu fkUvle Nught fUe
Jtbe cl dRo ni ytih WmfuU ct= Wl Nught vh DturM; mb;
=vag ytih yrvfUtht vh RmfUt nfU ni> WvgwoU yt=uN fuU
vrhKtbJv Nughtuk fuU ysol fUtu =eDtoJrv rlJuN btlt dgt>

(e) A case has been filed by a private limited company for


effecting sale of The Orrisa Minerals Development
Company Ltd. s share to them. According to legal opinion,
the Company believes that the case is not maintainable.

175

As per the order of the Honble Special Court, the delivery


of shares on 13.05.1992, by M/s V B Desai to AllBank
Finance Ltd., constituted complete transfer of property in
the shares in favour of the Company. Accordingly, the
Company became the owner of the shares from the date
of delivery of the shares and was entitled to all accretions
and rights declared thereafter. Pursuant to the
abovementioned order, the acquisition of the shares has
been considered as Long Term Investment.

J E M E { +xS

+E <xx .

Schedules Forming Part of the Accounts

3.

AllBank Finance Ltd.

+O +E, i { E E]i il |{ +E {
lli 31.03.2011 E ` 888.96 J (31.03.2010 E .
` 779.86 J) * Ex B +{ E z
;ht { Vx i i *

4. +x

+ E +iMi {U +v E n E h

3.

Advance income tax, tax deducted at source ,income


tax refund receivable, interest tax refund receivable and
advance fringe benefit tax amounted to ` 888.96 lakhs
as on 31.03.2011( ` 779.86 lakhs as on 31.03.2010 ) are
pending adjustment at various stages of assessments
and appeals.

4.

Details of Prior Period Items under Other Income

/In ` )

(`
2010-11

EV + /

E / Total

Brokerage Income

2009-10
610,342
610,342

/In ` )

(`

5.
2010-11

2009-10

27,950,799

71,492,466

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

100

100

18.63

47.66

E {Si (x] E { |H) /


Profit after Tax ( used as Numerator )

E + <C] E J /
Number of Equity Share at the beginning of the year

E +i <C] E J /
Number of Equity Share at the end of the year

E nx E <C] E i +i J (bxx] E { |H)


Weighted average number of Equity Shares outstanding during the year
( used as denominator )

<C] E x

/
Nomi Nominal value of Equity Share `

|i + b<]b +Vx /

Basic and diluted earnings per Share `

6. SE E{x E Miv BE |J Jb +li {V


V + r Miv E +iMi +i + ME
Jb E +iMi +i: i xn JE lx u V
J xE (BB -17) Jb {]M +{Ii Jb {] E
|E]Eh |V x *

7. E.

|v xnE E {v /

6.

As the companys business activity falls within a single


primary business segment viz. dealing in Capital
Markets and allied activities and in a single geographical
segment, the disclosure requirements of Accounting
Standard ( AS 17 ) Segment Reporting issued by
The Institute of Chartered Accountants of India are not
applicable.

7.a) Managing Directors Remuneration

ix / Salary
Ex E / House Rent
xv +nx / Contribution to Provident Fund
+x / Other Benefits
OS] i |vx / Provision for Gratuity
U]] |i{i i |vx / Provision for Leave Encashment

E / Total

176

(`

/In ` )

2010-11

2009-10

600,000

600,000

240,000

240,000

72,000

72,000

321,592

221,592

40,820

28,846

28,241
1,302,653

1,162,438

J E M E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

8. i xn JE lx u V J xE 22 +
{ E i J E +x E{x x +lMi E E
J * E{x E Bx{B + nMv +i { |vx
=i{z c j +lMi E +i * il{ E{h
fM +lMi E ni+ E iE +lMi E
+i E +Yi E M + < |E <E Ji
{ E< | x {c * +lMi E +i + ni+
E h < |E :

8.

In accordance with Accounting Standard 22 - Accounting


for Taxes on Income issued by The Institute of Chartered
Accountants of India , the Company has accounted for
deferred tax . The Company has significant amount of
deferred tax assets arising out of provisions made on NPA
and doubtful debts. However as a matter of prudence,
deferred tax assets have been recognized to the extent
of deferred tax liability and as such there is no impact of
the same in these accounts. The component of deferred
tax assets and liabilities are as follows :
( In ` )

31.03.2010 E lli

Particulars

As on 31.03.2010

i @h (|)

31.03.2011 E
lli

(Charge ) / Credit
for the year

As on 31.03.2011

E Eh +lMi E ni
Deferred Tax Liability on account of depreciation

5,402,630

27,580

5,430,210

Deferred Tax Assets on account of provision on NPA


and doubtful debts

5,402,630

27,580

5,430,210

Bx{B + +v @h { |vx E Eh +lMi E +i


+lMi E +i/niB (x)

Deferred Tax Assets / Liabilities (Net)

9. + + E +{iEi ={v Sx E +x EB

9.

MB +xvh <G, P B v =t E +vx,


2006 E +iMi {i E< G + P =t x *

10. i xn JE lx u V J xE

To the extent identified from the information available


from suppliers of goods and services, there are no macro
and small enterprises being a supplier as defined under
Micro, Small and Medium enterprises Development Act,
2006.

10. There is no impairment loss in terms of the Accounting


Standard ( AS 28 ) Impairment of Assets issued by
The Institute of Chartered Accountants of India.

(BB-28) <{] + B] E +x E< +xVE


x x *
11. i xn JE lx u V J xE 11.
(BB-18) vi {] |E]Eh E +x vi {]
|E]Eh xxx *
bM E{x- <n E / Holding Company Allahabad Bank

Related Party disclosures as required in terms of Accounting standard ( AS 18 ) Related Party Disclosures
issued by the Institute of Chartered Accountants of India
are as under :

|J |vx EE- |n +EE, |vE xnE B <+


Key Management Personnels - Mr. Prasad Akolkar, Managing Director & CEO

l V { V / Interest on Fixed Deposit


|vx nB / Management Contracts
|{i / Receiving of Services
{v / Remuneration
n V / Term Deposit
S V / Current Deposit
xn / Creditors

bM E{x

|J |vx EE

Holding Company

Key Management Personnel

2010-11

2009-10

6,180,841

5,617,941

314,791

235,546

256,571

262,111

50,000,000

50,000,000

3,317,020

6,158,800
12,495

177

2010-11

2009-10

1,302,653

1,162,438

59,511

J E M E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

={H vi {] E Sx = iE |E] E M<


Vix ={v Sx E +v { |vx u +xvi E
M *
12. |vx E , E{x E x S +i,
@h B +O E Mi V E E ix {j
n< M< E *
13. 2007-08 E J{I {] EB MB J{I
]{{h E +x x E bM V ]] ]-3,408
<C] , +Bb .-6,600 <C] + x
x -78,000 <C] , E v <n E ]
J b{V] vi BE {lE b{V] Ji C<]
+<b-10123882 E l J M*
14. <n E xx . (+E <x .) +IE
+ {i l* E{x +{x xi E nx
<n E + <E C<] E + |ii vh
Ei * < |E <n E xx . <x |ii E
+IE E { E E l* |l o] +E
<x . u vi |ii +li +BxV, ]]
], x x +n <n E u n M @h E
{I {E { E |ii i *
15. i { E M< E E]i E E v . 21194220
E E E vi E xvh nJ/i/+i
{ nB MB +E h E n vx E Vx
E | E V * V vx E {h VBM
E{x <E B +E |vx EM*
16. E xvh 1992-93 E . 5127354 E , V E
|vEh u xvh 1993-94 E b Vi
E M l, E M E v E{x E +{ JV
Vx E Eh < M E ix J M *
17. E{x (J xE) x 2006 +vSi J xE 15
ES E +iMi +{Ii |E]x xS nB MB
{i +nx Vx
xv ES E +nx . 289692 ({U - .
206225)
{i Vx
OS] + +E vi ni E ix |VC]b
x] Gb] {ri E |M Ei B EE x E +v {
xvi E Vi *
E. {i ni E +l + <i E vx
178

The above related party information is disclosed to the extent


such parties have been identified by the management on the
basis of information available. This is relied upon by the auditors.
12. In the opinion of the Management , current assets, loans
& advances have a value on realization in the ordinary
course of the Companys business which is at least equal
to the amount at which they are stated in the Balance
Sheet.
13. As per the audit observation made in audit report of the
year 2007-08, separate depository account vide client ID
- 10123882 with Allahabad Bank, Fort Branch Depository, had been duly opened in regard to the holding of
investments, such as Tata Motors 3,408 equity shares,
OMDC Ltd. 6,600 equity shares and Winsome Yarns
78,000 equity shares.
14. Allahabad Bank Nominees Ltd. (presently called AllBank
Finance Ltd.) was engaged in custodial services. The
Company, in regular course of business, used to hold
securities on behalf of Allahabad Bank and its clients.
Allahabad Bank Nominees Ltd., as such, was acting as
Custodian of these securities. Prima-facie, such securities viz. OMDC, Tata Motors, Winsome Yarns etc. held
by AllBank Finance Ltd. appears to be in the nature of
collaterals against loans granted by Allahabad Bank.
Keeping in view this perspective, it is not considered prudent that AllBank Finance Ltd is treated as the absolute
owner of these securities. The Company has sought for
legal opinion including tax aspect, in this regard and shall
act on that basis.
15. With regard to amount of Tax deducted at source (TDS),
amounting to Rs. 2,11,94,220, efforts are being made to
reconcile the entries with reference to income tax returns
filed / finalized/ pending for the relevant assessment
years. As soon as the reconciliation is completed, the
company shall make appropriate provision as may be
called for.
16. Owing to dismissal of Companys appeal regarding
demand to the tune of ` 5,127,354/- of A.Y. 1992 93
which was adjusted by Tax Authority from refund of A.Y.
1993 94, the demand is accounted for during the year .
17 . The disclosures required under Accounting Standard 15
Employee Benefits notified in the Companies (Accounting Standards) Rules 2006 , are given below :
Defined Contribution Plan
Employers Contribution to Provident Fund : ` 289,692
( Previous Year - ` 206,225)
Defined Benefit Plan
The present value of obligation relating to gratuity and leave
is determined based on actuarial valuation using the Projected
Unit Credit Method.
a. Reconciliation of opening and closing balances of Defined
Benefit Obligation Gratuity

J E M E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.


(`

/In ` )

2010-11

E | {i ni/Defined Benefit obligation at beginning of the year


S Mi /Current Service Cost
V Mi /Interest Cost
EE x/() /Actuarial Losses / ( Gain )
+n EB MB /Benefits Paid
E +i {i ni / Defined Benefit obligation at year end
J. xVi +i E =Si E +l + <i E b. Reconciliation of Opening
value of plan assets
vx

738,259
118,061
62,843
(19,246)
(371,365)
528,552
and closing balances of fair
( ` /In ` )
2010-11

E | xVi +i E =Si / Fair value of Plan Assets at the beginning of the year
xVi +i { +{Ii |i / Expected return on plan Assets
EE /(x)/Actuarial Gain / (Losses)
ES E +nx / Contributions by Employer
371,365
+n EB MB / Benefits Paid
(371,365)
E +i xVi +i E =Si / Fair value of Plan Assets at year end
c. Reconciliation of fair value of assets and obligations
M. +i + ni E =Si E vx
( ` /In ` )
31st March,2011

xVi +i E =Si /Fair value of Plan Assets


ni E ix /Present value of obligation
ix {j +Yi /Amount recognized in Balance Sheet
P. E nx +Yi

528,552
528,552
d.

Expenses recognised during the year

(`

/In ` )

2010-11

S Mi / Current Service Cost


118,061
V Mi /Interest Cost
62,843
xVi +i { +{Ii |i /Expected return on Plan Assets
EE ()/x /Actuarial (gain) / loss
(19,246)
-x Ji +Yi /Expenses Recognized in Profit and Loss Account
e. Actuarial assumptions
R EE {xx
Mortality Table : LIC (1994 1996 ) Ultimate
]] ] : B+< (1994-1996) +i
( ` /In ` )
{i /Year ended
x< n (|i )/Discount rate ( per annum)
ix r (|i )/ Salary Escalation ( per annum )
14. V E +E {U E +Ec E {xi/
{xli E M V <x S E o +Ec
E l ix x V E*
+xS B C E iIEi
il E {] E u
Ei b Bb
xn JE
Vide our Report of even date
For De & Bose
Chartered Accountants

31st March,2011
8.25%
7.00%
18. Previous years figures have been rearranged / regrouped
wherever necessary, to make those comparable with the
corresponding figures for the current year.
Signatories to the Schedules A to Q

V.{. n+ / J. P. Dua
+vI / Chairman
i n
Subrata De

{]x

{. E. M{i / P. K. Gupta
xnE / Director

Partner

|n +EE / Prasad Akolkar


ck" xnE B <+ / M D & CEO
ze. mhfUth / D. Sarkar
xnE / Director
+Vi vtrNlu / Abhijit Pashine
fUkvle mraJ / Company Secretary

179

E{x +vx, 1956 E +xS VI E M IV E +x Sx


Information Pursuant to Part IV of Schedule VI of Companies Act, 1956.

ix{j B E{x E x {J
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

I.

II.

III.

E{x E x / Name of the Company : +E <xx ]b / ALLBANK FINANCE LTD


{VEh / Registration Details
{VEh . / Registration No. : U67120WB1951GOI020023
VE] / State Code : 21
ix{jil / Balance Sheet Date : 31.03.2011
E n x +r {V (. V ) / Capital Raised during the year (Amount ` in Thousand)
{E < / Public Issue
:
x / Nil <] < / Right Issue
x / Bonus Share
:
x / Nil |<] +]x / Private Placement
xv E Oh B xVx E li (. V )

x / Nil
x / Nil

Position of Mobilisation and Deployment of Funds (Amount ` in Thousand)

IV.

E niB / Total Liabilities


xv E i / Sources of Funds
|nk {V / Paid Up Capital

540,984

E +i / Total Assets

540,984

150,000

+Ii B +v /

323,635

|ii @h / Secured Loans

x / NIL

xv E |M / Application of Funds

x +S +i / Net Fixed Assets

17,598

x S +i / Net Current Assets

107,250

S x /

x / Nil

Accumulated Losses

Reserves & Surplus

+|ii @h / Unsecured Loans

x / Nil

x / Investments

348,787

v / Misc. Expenditure

x / Nil

14,440

x / Nil

E{x E E x{nx (. V ) / Performance of the Company (Amount ` in Thousand)


]x + / Turn Over
:
57,991
E / Total Expenditure
E { /(x)
Profit/(Loss) Before Tax

: (+) 43,551

E E n /(x)
Profit/(Loss) After Tax

: (+) 27,951

/ Dividend Rate %

|i + (. )
Earning Per Share (in Rs)
V.

18.63

E{x E ix J =i{n/ + E x x (pE n E +x)


Generic Name of Three Principal Products/Services of Company (as per monetary terms).

fkUvle muce b uKe-I baou x cfUh fuU v b vksef]U; ni /


The Company is registered with the SEBI as a Category I Merchant Banker.
b E B B E +
For and on behalf of the Board

V.{. n+ / J. P. Dua
+vI / Chairman

|n +EE / Prasad Akolkar


ck" xnE B <+ / M D & CEO
ze. mhfUth / D. Sarkar
xnE / Director

{. E. M{i / P. K. Gupta
xnE / Director
lx / Place : EEi / Kolkata
nxE / Dated : 23.04.2011

+Vi vtrNlu / Abhijit Pashine


fUkvle mraJ / Company Secretary

180

J{IE E {]
muJt

AUDITORS REPORT

TO THE MEMBERS

b m=gdK,

+E <xx ]b,
1.

2.

3.

4.

5.

6.

AllBank Finance Limited.

x 31 S, 2011 E lli +E <xx ]b


E ix {j, + =E l Mx = iJ E {i
i B x J + xEn | h E J{I
E * Vx { x {] E n iI EB * <x
k h E Vn E{x |vx E * =kni
+{x J{I E +v { <x k h { +{x
+i H Ex *
x +{x J{I xi: i Ei J{I
xnb E +x E * =x xE E +{I E <
v =Si +x |{i Ex i J{I E E C
k h iiE +r h H * J{I
{Ih +v {, E |E] Ex I E VS il
k h |E]Eh E VS Ex * J{I
, |H J ri E Ex + |vx u EB MB
i{h +Ex i O k h E |ii E
Ex i * E J{I
+i E ` +v *

1.

We have audited the attached Balance Sheet of AllBank


Finance Limited as at 31st March , 2011 , the related
Profit and Loss Account and Cash Flow Statement for the
year ended on that date annexed thereto, which we have
signed under reference to this report. These financial
statements are the responsibility of the Companys
management. Our responsibility is to express an opinion
on these financial statements based on our audit.

2.

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
presentation. We believe that our audit provides a
reasonable basis for our opinion.

E{x +vx, 1956 E v 227 E ={v (4E)


E +x, i fuU Exp E u V E{x (J{IE
E {]) +n, 2003, E{x (J{IE E {]) (vx)
+n, 2004 E u lvi, l{Ii il E{x E
+ +J E B VS, V x ={H Z ,
E +v { + n M< Sx il {]Eh E +x
=H +n E +xSUn 4 B 5 =Ji { BE
h +xv E { <E l Mx Ei *

3.

As required by the Companies (Auditors Report) Order,


2003, as amended by the Companies ( Auditors Report )
Order,2004 , issued by the Central Government of India
in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956 and on the basis of such checks of
the books and records of the Company as we considered
appropriate and according to the information and
explanations given to us, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5
of the said order.

E{x x i |ii B x b S] E i
25.07.2008 ix E B {VEh |h{j E xEi
E V +{Ii E nE {x: xEi E V Ei
* < { E{x 11.05.2005 iE i V E M
EM k E{x E { {VEi l* E M EM k
E{x E +iMi Miv n E n M< l Ei {U
Miv vi EU Ji + S *

4.

The Company has got renewed certificate of registration


as a Merchant Banker from Securities and Exchange
Board of India effective from 25.07.2008 for three years
subject to renewal against payment of required fees.
Earlier to this, the Company was registered with Reserve
Bank of India as Non Banking Finance Company upto
11.05.2005. Though the activities under Non Banking
Finance Companies had been discontinued, but some
accounts of past activities are still continuing.

i V E u V M-EM k E{x J{I


{] (V E ) xn, 2000 u E M< +{I E +x
E< {] ln x< M< CE E{x 25.07.2005 S]
EM E{x x M< *

5.

As required by Non Banking Financial Companies


Auditors Report ( Reserve Bank ) Directions, 2000, issued
by the Reserve Bank of India , no report is made as the
Company became Merchant Banking Company with effect
from 25.07.2005.

6.

Further to our comments in paragraphs 3 to 5 above and


refer to Schedule Q of Notes on Accounts vide para 14
and 15 , we report that :

={H {] E {O 3 5 ]{{h E +, YJk


viht 14 YJk 15 fuU btgb mu tuFt vh rxvKe fUe ylwmqae
'Q' fUt mk=Cu t, {] Ei E :
E) x SxB B {]Eh |{i EB V
k VxE B E +x J{I E |Vxl
+E l*

181

a) We have obtained all the information and explanations


which to the best of our knowledge and belief were
necessary for the purpose of our audit;

J) , V iE E VS {i Si
, E{x u v E +{I E +x{ Si J
J M< *
M) < {] i ix-{j, -x J B xEn
| h E{x E J Ji *

b) In our opinion, proper books of account as required


by law have been kept by the Company so far as
appears from our examination of those books;
c) The Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in
agreement with the books of account;

P) < {] E v ix {j, x Ji
+ xEn | h E{x +vx 1956 E v
211 E ={v (3) ni J xE E +x
;

d) In our opinion, the Balance Sheet , the Profit and Loss


Account and the Cash Flow Statement dealt with by
these report comply with the accounting standards
referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ;

R) xnE |{i Ji +nx il b E Eb E


+x, Si Ei E 31 S, 2011 E lli
E< xnE E{x +vx, 1956 E v 274 E
={v (1) E Jhb (V) E +iMi xH i +M x
*

e) On the basis of written representations received from


the Directors and taken on record by the Board of
Directors, we report that none of the directors is
disqualified as on March 31, 2011 from being
appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Companies Act, 1956;

S) il k VxE + nB MB
{]Eh E +x Eli k J YJk stu rfU tuFt
ler;gt fuU mt: vrX; ni il =xE ]{{h V Mx
, E{x +vx 1956 u xvi { VxE
|nx Ei B xi: i Ei J ri
E +x{ + x{I li |ii Ei :
i)
ii)
iii)

f) In our opinion and to the best of our information and


according to the explanations given to us, the said
financial statements and read together with the
accounting policies and other notes thereon give the
information required by the Companies Act, 1956, in
the manner so required and give a true and fair view
in conformity with the accounting principles generally
accepted in India :

ix-{j E , 31 S 2011 E E{x E


li;
-x J E , = iJ E {i
i E{x E ; il
xEn | h E , = iJ E {i
i xEn |*

nxE : 23 yit, 2011


:tl& EEi

i b
{]x
ni . 54962
Ei b Bb
xn JE
VUbo vksefUhK mk. 302175E

i)

in the case of the Balance sheet, of the state of


affairs of the Company as at March 31, 2011;

ii) in the case of Profit and Loss Account, of the profit


for the year ended on that date ; and ,
iii) in the case of the Cash Flow Statement, of the
cash flows for the year ended on that date.

Date: 23rdApril,2011
Place : Kolkata

182

Subrata De
Partner.
Membership No. 54962
For & on behalf of
DE & BOSE
Chartered Accountants
Firm Registration No. 302175E

il E {] E { 3
ni +xv

Annexure referred to in paragraph 3 of


our report of even date

. +E <xx ]b

Re: ALLBank Finance Limited

1. (E) E{x x jiE h B +S +i E li


i { gti nJx E B Si Eb E JJ
E *
(J) {] E M E E nx |vx u i
+i E iE i{x x E M , {xi
i{x E BE xi EG |Si V
S E{x E +E B <Ee +i E { E
nJi B iEMi * E +J + iE
<x] E S E< Mi x {< M<*
(M) + nB MB {]Eh E +x JMo
fuU =tihtl fkUvle lu yvle rfUme ya mvrt E c
M fUt rlvxtl ln rfUgt ni>
2. E{x E E |Ei E +x x E S E
+Ei x *
3. (E) E{x x E{x +vx, 1956 E v 301 E +iMi
+xIi V] E E{x |iX x {]
E/ x E< |ii +|ii @h n x =x
*
(J) B V E{x x E Jn +l {]]
E gt y;h fUtvtuohux sbtYk E +iMi +O n ,
V n B +x i B +xv, |l oT E{x E
i E |iE x *
(M) B V E Mix E E{x u E
Vi * SE E +x{V +i E v
i V E u xvi xnb E +x{ E{x
u {{i |vx E M *

1.

b. It has been explained that all the assets have not been
physically verified by the management during the year,
but there is a regular program of verification which ,
in our opinion, is reasonable having regard to the size
of the Company and nature of its assets. No material
discrepancies between the book records and the
physical inventory have been noticed.
c. In our opinion and according to the information and
explanations given to us, any substantial part of the
fixed assets has not been disposed of by the Company
during the year.
2.

The nature of business of the Company does not warrant


holding of inventory.

3.

a. The Company has not granted or taken any loans ,


secured or unsecured, to / from companies, firms or
other parties covered in the register maintained under
Section 301 of the Companies Act, 1956 .
b. In cases where the Company has made advances
under Hire Purchase , Leases Agreements or Inter
Corporate Deposit, the rate of interest and other terms
and conditions are, prima facie, not prejudicial to the
interests of the Company.
c. Payments of the principal amount and interest are
being recovered by the Company. In cases of default,
adequate provisions have been made by the
Company, in accordance with norms laid down by the
Reserve Bank of India, in the matter of Non Performing
Assets.

(P) B V +in { BE J +vE


, E{x u B V E i Wra; En
=`B MB *
4. il n M< VxE B {]Eh E +x
E{x E +E il <E E { E +x {{i
+iE xjh |h * <E +iH, + E{x
E +J E VS il n M< Sx + {]Eh E
+x x x i +iE xjh c J E vx
Mi x E E< { + x
<E Sx n M< *
5. n M< Sx + {]Eh E +x E{x x B E<
xnx x E V E{x +vx E v 301 E
+x V] +Ji Ex E +Ei *
6. E {x x E {x +vx 1956 E v 58B,58BB
+l +x M i ={ v + =E + i M i xB MB
x E +iMi + Vxi E< V E x E
*

a. The Company has maintained proper records showing


full particulars including quantitative details and
situations of its fixed assets.

d. In cases where the overdue amount is more than


Rupees one lakh, reasonable steps have been taken
by the Company for the recovery of the principal and
interest.
4.

In our opinion and according to the information and


explanations given to us, there is an adequate internal
control system commensurate with the size of the
Company and the nature of its business. Further, on the
basis of our examination of the books and the records of
the Company and according to the information and
explanations given to us, we have neither come across
nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control
system.

5.

According to the information and explanations given to


us, the Company has not entered into transactions which
require to be recorded in a register in pursuance of Section
301 of the Companies Act.

6.

The Company has not accepted any deposit from the


public under Sections 58A, 58AA or any other relevant
provision of the Companies Act,1956 and the rules framed
thereunder.

183

7. E{x E +E il E |Ei E +x
E{x E { xn JE E J {I
Ex E BE +iE |h *
8. Exp E x E{x +vx, 1956 E v 209(1)(P) E
+iMi E{x E Mi Eb B J Jx i xvi x
E *
9. (E) n M< Sx + {]Eh il u VS
EB MB E{x E +J E +x E{x xv,
+ E, E, ={ E il +x iiE vE
n i +ni vE n E Si |vE
E V Ex E xi *

7.

The Company has an internal audit system by an outside


firm of Chartered Accountants which is in our opinion
commensurate with its size and nature of business.

8.

The Central Government has not prescribed maintenance


of cost records and accounts under Section 209(1)(d) of
the Companies Act, 1956, to the Company.

9.

a. According to the information and explanations given


to us and the records of the Company examined by
us , in our opinion, the Company is regular in depositing
the undisputed statutory dues including provident fund,
income tax, service tax, cess and other material
statutory dues as applicable with the appropriate
authorities.

(J) n M< Sx + {]Eh il u VS


EB MB E{x E +J E +x 31 S 2010 E
lli n vE E E h xxx
V n E Eh V x EB MB*

b. According to the information and explanations given


to us and the records of the Company examined by
us, the details of statutory dues as on 31st March, 2011,
not deposited on account of dispute, are as under :

v E x

n E {

E S { n i

Name of the Statue

Nature of the Dues

Forum where the dispute is pending

+E
+vx, 1961

+E
xvh 2003-04

+<.].B.]. EEi S

Income Tax
Act, 1961

Income Tax
A.Y. 2003-04

+E
+vx, 1961

+E
xvh 2004-05

Income Tax
Act, 1961

Income Tax
A.Y. 2004-05

I.T.A.T. Kolkata Bench

I.T.A.T. Kolkata Bench

+ E
xvh 2005-06

+E +H (+{)

Income Tax
Act, 1961

Income Tax
A.Y. 2005-06

Commissioner of Income
Tax ( Appeals )

+E
xvh 2006-07

Income Tax
Act, 1961

Income Tax
A.Y. 2006-07

+E
+vx, 1961

+E
xvh 2007-08

Income Tax
Act, 1961

Income Tax
A.Y. 2007-08

+E
+vx, 1961

+E
xvh 2008-09

Income Tax
Act, 1961

Income Tax
A.Y. 2008-09

627.62

+<.].B.]. EEi S

+E
+vx, 1961
+E
+vx, 1961

(< J )
Amount ( < in lacs )

70.52

23.44

+E +H (+{)
Commissioner of Income
Tax ( Appeals )

15.32

+E +H (+{)
Commissioner of Income
Tax ( Appeals )

55.18

+E +H (+{)
Commissioner of Income
Tax ( Appeals )

10. E{x E 31 S 2010 E E< S P] x + =


il E {i k = iiE { E E<
xEn P] x =X
11. u E{x E +J E VS il n M< VxE
B {]Eh E +x, k l+, E bS
vE E { E{x E E< E x *

8.07

10

The Company has no accumulated losses as at 31st


March,2011 and it has not incurred any cash losses in
the financial year ended on that date and in the
immediately preceding financial year.

11

According to the records of the Company examined by


us and the information and explanation given to us, the
Company has no dues towards financial institutions,
banks and debenture holders.

184

12. B V E Jn B {]] E E +iMi


+O nB MB , E{x x {{i +J B niV E
JJ E *
13. E{x { S]b xv/Sw+ x] b/<] {
|V v E |vx E{x E B M x k*

12

The Company has maintained adequate records and


documents where advances have been made under hire
purchase and leases agreements.

13

The provisions of any special statue applicable to chit


fund or a nidhi / mutual benefit fund / societies are not
applicable to the Company.

14. E{x , |ii, bS B +x x E bM +l


]bM x Ei * E{x x xM E +b<]M il
Mi +ni < E xn E +iMi BE n
E x{] Ex { +vMi EB + nPv
x E { b + bS +Vi EB * E{x x
B xnx E Si Eb J il E{x +{x x
, ctkz + bS Ji *

14

The Company is not dealing or trading in shares,


securities, debentures and other investments. The
Company has acquired shares on account of underwriting
share issue and also in settlement of a claim under
directions of The Special Court, Mumbai in the previous
years and has also acquired debentures and bonds as
long term investments. The Company has maintained
proper records of such transactions and the shares,
debentures and bonds are held by the Company in its
own name.

15

According to the information and explanations given to


us, the Company has not given any guarantee for loans
taken by others from banks or financial institutions and
therefore the provisions of Clause 4 (xv ) of the Order are
not applicable to the Company.

16

As per records, the Company has not taken any term


loan during the year covered under audit and therefore
the provisions of Clause 4 (xvi ) of the Order are not
applicable to the Company.

17

Based on the information and explanations given to us


and on an overall examination of the balance sheet of
the company, in our opinion, there are no funds raised on
a short term basis which have been used for long term
investment.

18

The Company has not made any preferential allotment


of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956
during the year.

19. E{x x E< bS V x E * inx, +n E


Jb 4(xix) E |vx E{x { M x *

19

The Company has not issued any debentures.


Accordingly, the provisions of Clause 4 (xix ) of the Order
are not applicable to the Company.

20. E{x x E nx {E < E VB vx E =M x


E *

20

The company has not raised any money by public issue


during the year.

21

During the course of our examination of books and


records of the Company, carried out in accordance with
generally accepted auditing practices in India and
according to the information and explanations given to
us, we have neither come across any incidence of fraud
on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the
management.

15. n M< VxE B {]Eh E +x, E{x x E


+x E u E + k l+ M @h E B
E< M] x n * +iB, E{x +n 2003 E Jb-4
(xv) E |vx E{x E B M x *
16. +J E +x, E{x x J{I E +iMi
E< n @h x E * +iB, +n 2003 E
Jb-4 (xvi) E |vx E{x vh M x *
17. n M< Sx + {]Eh E +v { + E{x E
ix {j E O VS Ex { E +{EE
+v { B E< xv x =M M< VE |M
nPEE x i E M *
18. E{x x E{x +vx 1956, E v 301 E +iMi
+xIi V] {] + E{x E E
nx +vx E +]x x E *

21. i xi Ei J{I {{] E +x


u E{x E +J + E VS E nx +
n M< Sx + {]Eh E +x E nx x i
E{x E{x u E |E E vJvc EB Vx E
P]x x +<, x <E VxE , x B E<
{] E M< + x |vx u B E P]x E
Sx n M< *
lx : EEi
nxE : 23.04.2011

c{i b
{]x
ni . 54962
Ei b Bb
xn JE
VUbo vksefUhK mkgt 302175E

Place : Kolkata
Date: 23.04.2011

185

Subrata De
Partner.
Membership No. 54962
For & on behalf of
DE & BOSE
Chartered Accountants
Firm Registration No. 302175E

<n E

Allahabad Bank
Head Office: 2, N. S. Road
Kolkata 700 001

|vx E : 2, xiV b
EEi-700 001
lJbT E x `E i ={li {jE--| {j
nxE : 10 Vx 2011
lx : <]x Vx ES x]
i ES ]{C
+<-201, C] III, ] E ]
EEi 700 106

ATTENDANCE SLIP-CUM-ENTRY PASS FOR


NINETH ANNUAL GENERAL MEETING
Date
:
10th June, 2011
Place
:
Eastern Zonal Cultural Centre
Bharatiyam Cultural Multiplex
IB-201, Sector III, Salt Lake City
Kolkata 700 106

={li {S

ATTENDANCE SLIP

(| E V Ex i)

(To be surrendered at the time of entry)

x {] +I /NAME IN BLOCK LETTERS


n Member / |C Proxy /

/C<] +<b .

E J

FOLIO/CLIENT ID NO.

No. of Shares

tr"f]U; r;rlr" Authorised Representative

vE / |C / |vEi |ixv E iI
Signatue of Shareholders/Proxy/Representative present

| {j ENTRY PASS

x {] +I /NAME IN BLOCK LETTERS


n Member / |C Proxy /

/C<] +<b .

E J

FOLIO/CLIENT ID NO.

No. of Shares

tr"f]U; r;rlr" Authorised Representative

`E | E B vE/|C/|ixv +xv E < ={li {jE - - | {j E vi iI


EE |ii E* | {j M vE/|C/|ixv E ] n VBM V =x `E {i x iE +{x {
Jx SB* |, n +E Z M i +M i{x/VS E +vx M * E Ce i , `E |
E B ={li {jE E E< n |i V x E VBM*
]{{h : `E E n x ={/={ E{x x ] VBM*
E{ Mx E {] E +{x |i l E +B*
Shareholders/Proxy/Representatives are requested to produce this Attendance-slip-cum Entry Pass signed, for
admission to meeting hall. The Entry pass portion will be handed back to the shareholders/Proxy/Representative,
who should retain it till the conclusion of the meeting. The admission may, however, be subject to further verifications/
checks as may be deemed necessary. Under no circumstances, will any duplicate Attendance Slip-cum Entry Pass
be issued at the entrance to the meeting hall.
Note :
No gifts/gift coupons will be distributed at the meeting .
Please bring your copy of the enclosed Annual Report.
186

Sri E E Jb 49V E
+xh |h{j

,
xnE b,
<n E
|hi E Vi E(E) x 2010-2011 i ke h + xEn h E I E + k VxE +
E +x :
i)

ii)

<x h E< i{h +i Elx x +l E< i{h il U] x +l E< E Elx ]


x *
h E E E i + =Si U |ii Ei il Vn J xE, |V v + xx
E +x *

(J) k VxE + E +x E nx E x E< B xnx x E V E{]{h, +v


+l E E +S i E r *
(M) k {]M i +iE xjh l{i Ex + < xB Jx E =kni E Ei + E
x k {]M vi E E +iE xjh |h E Ex E + B +iE xjh E {J
+ {Sx E =x Mi E, V VxE + <x Mi E {vx i x V En =`B
, = J{IE + J{I i E I |E] E *
(P) x J{IE + J{I i E n E(i)

2010-11 E nx k {]M { +iE xjh E< i{h {ix x ni>

(ii)

E nx J xi E< i{h {ix x + *

(iii)

vJvc E P]xB VxE VxE < + V |vx gt E ES E {ii, n E<


, VE k {]M { E fUe ytk;rhfU xjh |h i{h E *

(su. {. =qqyt)

(Y. ce. Ctatgo)

+vI B |v xnE

|vE (k B J) YJk meYVUytu


lx : EEi
nxE : 02.05.2011

187

CERTIFICATE PURSUANT TO CLAUSE 49V


OF THE LISTING AGREEMENT

To
The Board of Directors
Allahabad Bank
This is to certify that
(a) We have reviewed financial statements and the cash flow statement for the year 2010-2011 and that to the best of our
knowledge and belief:
(i)

these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading.

(ii)

these statements together present a true and fair view of the Banks affairs and are in compliance with existing
accounting standards, applicable laws and regulations.

(b) There are, to the best of our knowledge and belief, no transactions entered into by the Bank during the year which are
fraudulent, illegal or violative of the Banks code of conduct.
(c)

We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of the internal control systems of the Bank pertaining to the financial reporting and we
have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal
controls of which we are aware and the steps we have taken to rectify the deficiencies.

(d) We have indicated to the auditors and the Audit Committee


(i)

that no significant changes in internal control over financial reporting has been made during the year 2010-11,

(ii)

that no significant changes in accounting policies has taken place during the year,

(iii) the instances of significant fraud of which we become aware and the involvement therein, if any, of the management or an employee having a significant role in the Banks internal control system over financial reporting.

( J. P. Dua)
Chairman & Managing Director

(A. B. Bhattacharjee)
General Manager ( F & A) & CFO

Place: Kolkata
Date: 02.05.2011

188

<n E

|vx E : 2, xiV b
EEi : 700 001
"'
vhtuGe
(vE n u B iI E Vx )
{VEi YYce
(n b]<V x )
b.{.+<.b .
ttRkx +<.b .
(n b]<V )

..........................................................
..........................................................
..........................................................

/ .................................................................................................................. V E ....................... V li
........................... E/E x <n E E/E /Nuht fu vE ntulu fuU lt;u Y;=Tu ........................ V E ...........................
V li .................................. E/E x /i ..................................................... E +l =E +x{li
....................................... V E ............................... V li .............................. E/E x /i ..................................
E Nwf{U 10 Vx 2011 E 10.30 V vqJoe ytprzxturhgb, <]x Wx ES x], i ES ]{C, +<-201,
C] III ] E ], EEi -- 700 106 {z x <n E E vEt E x E x i`E +
=E E lMx E ={xi +Vi `E / + inx Ex E +{x {I xH Ei /Ei *
< {...........................2011 E........................nx iI E*
........................................
Ji (|C) E iI
{I (|C) { iI Ex + |iiEh i +xn

1.

E{ 1 {Y
Et n
|l/BE vE E iI
]E] S{EYk
x : ...................................................................
{i : ...................................................................
..........................................................................
..........................................................................

Ji Ji i v M V
E) HMi vE n E Ji { vi |vEi =E/=E +]x u iIi E VB*
J) H vE E V] |l xi vE n u Ji { vi |vEi =E /=E +]x u iIi E VB*
M) E E{x xE E =E +vE u +l Ji { vi |vEi +]x u iIi E VB*
2. rsm Ji Ji { vE +M` xx, +Ei Ei i Jn ;Ce Ji" ntudt sc Jn VV, V]] +x E V] y:Jt Wv hrsx[th
E +x E V{ji +vE <n E E +vE u i{i *
3. Ji E l
E) Jix +x |vE (n E< ) VE ii = { iI EB MB
J) x] {E +l V]] u i{i Jix +l +x |vE E |i lJbT E + `E E iJ S nx { +li
mtub 6 Vx, 2011 E E E nx = { <n E, M, |vx E V E Vx SB*
4. n r Jix <n E +l +ih BV] E { { {VEi E V SE i Jix E {VEh J + B
{VEh E iJ E =J E VB*
5. E< Ji i iE v x M V iE vi ]{i x *
6. E V E M< Ji Ji +i il +|ih M*
7. n Ji Ji E{E { n H E B i BE +vE x{ni x EB VBk*
8. V vE x Ji Ji x{ni E = E x `E HMi { inx Ex E En x M V Ji
vi *
9. <n E E E ES +vE E vi |vEi Ji E { xH x E VBM*
10. E< Ji (|C) i iE v x M V iE - "' { x *

189

Form B
Form of Proxy
( To be filled in and signed by the shareholder member)

Regd. Folio No.. ALB


( If not demateralised)
DPID No.
Client ID No.
( If dematerialized)

I/We resident of in
the district of in the state of
being a share holder(s) of Allahabad Bank,, hereby appoint Shri/Smt.
resident of in the district of
- or failing him/her. Shri/Smt
resident ofin the district of in the state of
as my /our proxy to vote for me/us and on my/our behalf at the Nineth Annual General
Meeting of the Shareholders of the Allahabad Bank to be held on Friday, the 10th June 2011 at 10.30 a.m. Purbashree
Auditorium at Eastern Zonal Cultural Center, Bharatiyam Cultural Multiplex, IB-201, Sector-III, Salt Lake City, Kolkata-700106,
and at any adjournment thereof.
Signed this day of 2011

Signature of the Proxy

Please affix
One Rupee
Revenue
Stamp

Signature of the First/Sole Holder


Name
Address
Instructions for signing and lodging the Proxy form
1.
(a)
(b)

The instrument of proxy to be valid


in case of an individual shareholder, shall be signed by him/her attorney duly authorized in writing.
In case a joint holder, shall be signed by the shareholder whose names appeared first in the Register of Members or by his/her
attorney duly authorized in writing.
( c) In case of body corporate, shall be signed by its officer duly authorised in this behalf and executed under its common seal, if any or
otherwise signed by its attorney duly authorized in writing.
2.

An instrument of proxy in which the thumb impression of the shareholder is affixed, will be valid provided it is attested by a Judge,
Magistrate, Registrar or Sub-Registrar of assurance or any other Government Gazetted Officer or an Officer of Allahabad Bank.
3. The Proxy together with
(a) the power of attorney or other authority ( if any) under which it is signed or
(b) a copy of that power of Attorney or Authority , certified by a Notary Public or a Magistrate, should be deposited at the Head
Office, Allahabad Bank, not later than FOUR days before the date of Nineth Annual General Meeting, i.e. on or before the
close of business hours on Monday, 6th June, 2011.
4. In case of relevant power of attorney is already registered with Allahabad Bank or its Share Transfer Agent , the registration number
of power of attorney and date of such registration may be mentioned.
5. No proxy shall be valid unless it is duly stamped and signed.
6. An instrument of proxy deposited with the Bank shall be irrevocable and final.
7. In case of an instrument of proxy granted in favour of two grantees in the alternative, not more than one form shall be executed.
8. The shareholder who has executed an instrument of proxy shall not be entitled to vote in person at the Annual General Meeting
to which such instrument relates.
9. No person shall be appointed as duly authorized representative or a proxy who is an officer or an employee of Allahabad Bank.
10. No instrument of proxy shall be valid unless it is in Form B.

190

-----------------------------------------------------------------------------------------------------------------------------------------------------------



ALLAHABAD BANK
H.O: 2, Netaji Subhas Road, Kolkata-700 001

<B b] i /E Ji h
(iE vE i)

/ .............................................................................Binu <B u v E Ji V
fUhlu i <n E E |vEi Ei /:
/ . BB

E J

E Ji E h
E. E E x

: ______________________________

J.

J E x (E B J)
{i(E +vn i)

: ______________________________

M.

B+<+ SE { =Ji
E + J E 9 +E E E]

P.

Ji E |E (Si/S)

: ______________________________

b.

SEE =Ji Ji J

: ______________________________

S.

vE E B]b Eb + ]x J

: ______________________________

: ______________________________

Binu Ph Ei E >{ nB MB h + {h * n Mi + +v Sx nx E Eh xnx i


+l xnx x {i i <n E E =kn x `=M*

0 BB ]b
gqx]: <n E
77/2B, V b
EEi-700 029

vE E iI

Eb J E ]Ei E i{x i E{ +{x =H Ji vi SE {z E ]|i +l xi E M E SE Mx E*


n +{ b] vh E i E{ +{x <B b] vi b{V] {]{] E =E u xvi ]
V*
*<B

E v V Ex i E J B E ii x SB*

191

FORM FOR ECS MANDATE/BANK ACCOUNT PARTICULARS


(FOR PHYSICIAL HOLDERS)
I / We ......................................................................................................... do hereby authorize Allahabad Bank to credit my
dividend amount directly to my bank account by ECS.
My/Our Folio No. ALB :
No. of Shares

Particulars of Bank Account


A

Bank Name

________________________________

B.

Branch Name (only CBS Branch)

________________________________

Address ( for mandate only)

________________________________

9 Digit Code No. of the Bank & Branch


Appearing on the MICR Cheque

________________________________

D.

Account Type ( Saving/Current)

________________________________

E.

Account No. as appearing in the Cheque Book

________________________________

F.

STD Code & Telephone No. of shareholder

________________________________

I hereby declare that the particulars given above are correct and complete. If the transaction is delayed or not effected at all for
reasons of incomplete or incorrect information, I would not hold Allahabad Bank responsible.
Mail to
M/S MCS Limited
Unit: Allahabad Bank
77/2A, Hazra Road
Kolkata-700 029

Signature of the shareholder

Please attach a photocopy of a Cheque Leaf or a blank cancelled cheque issued by your bank relating to your above account
for verifying the accuracy of the code numbers.
In case you are holding shares in demat form, kindly send the ECS Mandate to the concerned Depository Participant
directly, in the format prescribed by the DP.

* The Bank Branch should be under CBS for credit of Dividend through ECS

192