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ALLAHABAD BANK

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

www.allahabadbank.in
-S / contents

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ANNUAL REPORT
{. . / Page No.

{. . / Page No.

02

03-06

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Consolidated Financial Statement

List of Directors', Auditors' etc

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33-81

82-103

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Auditors Certificate on

104
105-143

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Financial Statements of the Bank

205-206

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207-208

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/ IMPORTANT PROGRAMMES & DATES

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Cut off Date for ascertaining the
Shareholders eligibility to get dividend

203-204

Form for ecs mandate

144-145

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Proxy Form

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Auditors Report of the Bank

202

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Certificate Pursuant to clause 49V of the

Listing Agreement

Corporate Governance

197-201

Attendance Slip cum Entry Pass

Report on Corporate Governance

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Auditors' Report of AllBank Finance Ltd.

Directors Report of the Bank

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175-196

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Financial Statements of
AllBank Finance Ltd.

Form, Biodata Form & Nomination Form

172-174

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Directors' Report of AllBank Finance Ltd.

Notice of Annual General Meeting, Declaration

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170-171

Statement

Director's Message

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Auditors Report on Consolidated

Chairman & Managing

146-169

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14.05.2010

Date, time & Venue of Annual

General Meeting

26.05.2010

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10.06.2010

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and participate in the election

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Last date for submission of
Nomination form

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Last date for receipt of proxy form
and resolutions for appointing

Purbashree Auditorium Eastern Zonal Cultural Centre,

Bharatiyam Cultural Multiplex, IB-201, Sector-III,

05.06.2010

Salt Lake City, Kolkata-700106

authorized representatives

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ALLAHABAD BANK

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

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

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BOARD OF DIRECTORS (AS ON 31.03.2010)

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SHRI J. P. DUA

Chairman & Managing Director

SHRI D. SARKAR

Executive Director

SHRI M. R NAYAK

Executive Director

SHRI MOHAMMAD TAHIR

Director

SMT. SUKRITI LIKHI

Director

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SHRI K. K. DOGRA

Director

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SMT. JOGINDER KAUR

Director

SHRI P. V. GUDIREDDY

Director

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DR. SHAKEEL-UZ- ZAMAN ANSARI

Director

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SHRI DEVESHWER KUMAR KAPILA

Director

DR. VASANT BABURAO KAUJALGI

Director

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J-{IE/AUDITORS
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M/S VENKAT & RANGAA

Chartered Accountants

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M/S SUDIT K. PAREKH & CO.

Chartered Accountants

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M/S P. A. & ASSOCIATES

Chartered Accountants

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M/S M. R. NARAIN & CO.

Chartered Accountants

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M/S S. GHOSE & CO.

6.

Chartered Accountants

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M/S K M AGARWAL & CO.

Chartered Accountants

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/REGISTRAR & SHARE TRANSFER AGENT

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

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EEi-700 029
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<- : mcscal@cal2.vsnl.net.in
Website : www.mcsdel.com

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Chairman and Managing

Directors Message

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Dear Shareholders,

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It gives me immense pleasure in presenting

before you the Annual Report of your Bank for
the financial year 2009-10. As the Chairman
& Managing Director of this prestigious
institution with a rich heritage and glorious
tradition, I am extremely delighted to have the
opportunity to address you all. I would humbly
begin with the assertion that the financial year,
which passed by, has seen the toughest turbulences in the
global as well as domestic markets, the genesis of which
dates back to the last part of 2008 in the US mortgage financing
market. Indian economy, though more or less insulated from
the crisis at the beginning, could not escape the world wide
economic slowdown and banks, too, had to bear the brunt. It
became a crucial task before us to sustain business growth
& profitability of the Bank. However, with diversified credit
pattern, a very large customer base and very cautious and
well thought out policy strategies we have been able to
overcome the impending crisis and I am sure, you will
appreciate that your Bank has, not only shown commendable
performance in all key operational parameters during 200910 but also added values and strengthened the Balance Sheet
of the Bank for a better and resilient future. Presently, with the
economy out of the slowdown process and steadily gaining
momentum we, too, have paced forward which has been
reflected in our balance sheet. In this address, I am, most
candidly trying to place before you an analysis of performance
of your Bank during 2009-10 along with a brief account of the
Indian economic and banking scenario.

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A well-balanced and reliant growth, proper and steady

implementation of financial sector reform measures and
absorption of latest technological innovations have
unequivocally contributed towards Indian economys journey
towards a higher growth path and helped India emerge as
worlds second fastest growing economy with a growth of
7.2-7.5% (estimated) during 2009-10. The sustained growth
may as well be attributed to dynamic commercial sector, active
capital market, acceleration in GDP growth, turnaround in
exports, strong recovery in industrial production especially in
manufacturing, services sectors, revival of stock market
activities, revival in capital inflows and indications of positive
corporate sales leading to signs of improved profitability and
credit growth etc.

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The year 2009-10 is characterized by soft interest rate

scenario, abundant liquidity and rising inflationary pressure.
As domestic inflation and the global trend in commodity
prices, both are on upward swing, net capital inflows picking
up and input costs rising, it is likely that interest rates may
start hardening by the year-end. But, banks are very cautious
now because any hike in policy rates could affect credit off
take. The non-performing asset management has become
a constant area of concern and has got rigorous efforts from
banks. Adoption of information technology gained further

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momentum during the year. In line with Basel II guidelines,

Indian banks are adopting international standards of risk
management. Notably, your Bank is Basel II compliant. Indian
banks have enhanced financial strength and are geared up
to become institutions of international standard.

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Your Bank has depicted a commendable performance not

only in the areas of sustained business growth with profitability
but also in the key areas of increased productivity,
stakeholders value, enhanced visibility and image, faster
adoption of technology, among others. All these have helped
in increasing market perception manifold for your Bank.

E E 31.03.2009 E lli .1,44,415 Ec

23.60% gE 31.03.2010 E lli . 1,78,493 Ec iE
{S M* E V 31.03.2009 E lli . 84,972
Ec E {I 24.81% g E 31.03.2010 E lli
. 1,06,056 Ec M<* E E E @h 31.03.2009 E
. 59,443 Ec E {I 21.86% g E 31.03.2010 E lli
. 72,437 Ec M* 31.03.2010 E lli @h V
+x{i 68.93% VE 31.03.2009 E lli @h V
+x{i 70.93% * E x =SS Mi V V]x n
x E E{h xh + =SS + +O E {I
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V 32.96% E r <*
31.03.2010 E lli E E Si E V 24.14%
g E . 28,271 Ec M< * E E S Ji V
31.03.2009 E lli . 6,623 Ec gE 31.03.2010
E lli . 8,316 Ec iE {S M< V 25.55% E r
ni * E V E V E + 34.82% *

Business of the Bank went up by 23.60% to reach the level of

Rs.1,78,493 crores as on 31.3.2010 from Rs.1,44,415 crores
as on 31.3.2009. Total Deposits grew by 24.81% to
Rs.1,06,056 crores as on 31.3.2010 from Rs.84,972 crores
as on 31.3.2009. Gross credit of the Bank went up by 21.86%
to Rs.72,437 crores as on 31.3.2010 from Rs.59,443 crores
as on 31.3.09. Credit-deposit ratio stood at 68.93% as on
31.3.2010 as against 70.93% as on 31.3.2009. The bank
consciously decided to be refrained from raising high cost
deposit and rebalancing portfolio in favour of high yielding
advances. Thus, core deposit went up by 32.96% during
2009-10.

31.03.2010 E lli E E |lEi Ij @h 18.81% g

E . 24,279 Ec M VE E @h 20.90% gE .11,567
Ec iE {S M* 31.03.2010 E lli |lEi Ij @h
+ E @h Vi x E @h (BBx) E G: 41.29%
+ 18.68% l* 2009-10 E nx .1336 Ec E E xB
Ex Gb] Eb (E) V EB MB V E Eb +v 9.12
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@h xvi 10% E xnb E {I BBx E 10.46 % l*
E E V Mi 2008-09 E nx 6.62% E {I 2009-10 E
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+O { + 2008-09 E n x 10.88% E {I 2009-10 E n x
P]E 10.57% M< VE xv { + {U i E 9.62%
E {I P]E 2009-10 8.68% M<* < |E V Mi
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Priority sector credit of the Bank grew by 18.81% to Rs.24,279

crores as on 31.3.2010 while agriculture credit went up by
20.90% to Rs.11,567 crores. The priority sector credit and
agriculture credit formed 41.29% and 18.68% of Adjusted Net
Bank Credit (ANBC) respectively as on 31.3.2010. Fresh Kisan
Credit Cards (KCC) involving an amount of Rs.1336 crore were
issued to farmers during 2009-10 taking total card base to
9.12 lacs involving Rs.4848 crores. Credit to weaker section
was 10.46% of ANBC as against stipulated norms of 10%.

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+ 2.15% M*
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31.03.2010 E lli gE .8.45 Ec M* VE
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Market share of deposits and advances improved to 2.24%

and 2.15% respectively as on 31.3.2010 from 2.11% and
2.10% as on 31.3.2009 as a result of object-oriented growth
target of deposit and credit mentioned above.

E E {Sx 34.05% E r ni B {U E
.1901.15 Ec g E 2009-10 E nx . 2548.55 Ec
M* Vx-S 2010 i {Sx 7.13% gE .657.95
Ec M* E n x ]V(]bM) .572.70 Ec gE

Operating profit of the Bank went up to Rs.2548.55 crores

during 2009-10 from Rs.1901.15 crores in the previous year,
showing a growth of 34.05%. Operating profit for the quarter
Jan-Mar10 increased by 7.13% to Rs.657.95 crores. The

Savings bank deposits of the Bank went up by 24.14% to

Rs.28,271 crores as on 31.3.2010. Current account deposits
of the Bank reached to Rs.8316 crores as on 31.3.10 from
Rs.6,623 crores as on 31.3.09 showing a growth of 25.55%.
The share of CASA deposits in Aggregate deposits was at
34.82%.

Cost of deposits of the Bank decreased to 5.97 % during 200910 from 6.62% during 2008-09, reducing the overall cost of
fund of the Bank to 5.99% from 6.67% during the period.
Yield on advances decreased to 10.57% during 2009-10 from
10.88% during 2008-09 the yield on funds decreased to 8.68%
during 2009-10 from 9.62% of previous corresponding year.
Thus cost of deposits reduced by 65 basis points and the
yield on advances reduced by 31 basis points.

Business per Employee augmented to Rs.8.45 crores as on

31.3.2010 from Rs.7.06 crores as on 31.3.2009 while
business per branch went up to Rs.77.62 crores from
Rs.63.90 crores.

treasury (trading) profit increased to Rs.576.55 crores from

Rs.572.70 crores during the year. The net profit of the Bank
showed a growth of 56.95% to reach Rs.1206.33 crores
during 2009-10 from Rs.768.60 crores in the preceeding year.
Earnings per share went up to Rs.27.01 during 2009-10 from
Rs.17.21 during 2008-09 while book value per share
improved to Rs.151.17 from Rs.131.00 during the period.

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B {U E .768.60 Ec gE 2009-10 E nx
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31.03.2010 E gE 1.16% M* |i ES 2009-10
E n x . 3.76 J E {I 2009-10 E n x gE .5.76 J
M*
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Ei B SE @h r E x {U E 2.88% E {I x
V Vx 2.94% xB J*
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{Sx nIi nJi B Mi + +x{i 2008-09 E 42.40%
P] E 2009-10 E lli 38.83% M* E
l{x E +x{i 2008-09 E 13.23% g E 2009-10
13.79% M VE < +v E nx E +x {Sx
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xv {Sx E +x{i 1.65% vE 1.55%
M*
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E lli 13.11% E {I 31.03.2010 E lli 13.62%
*
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E 1.81% E {I 31.03.2010 E P]E 1.69% M<* x
Bx{B 31.03.2009 E 0.72% E {I 31.03.2010 E P]E
0.66% M* |vx EV +x{i 78.95% * {V
+x{i 31.03.2009 E 1.72% gE 31.03.2010 E lli
1.98% M* 31.03.2010 E lli xEn (Zi
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.210.51 Ec l* E x ]] Ji b MB @h .229.40
Ec E E*

Return on Assets went up to 1.16% as on 31.03.2010 from

0.90% as on 31.03.2009. Profit per Employee improved to
Rs.5.76 lacs during 2009-10 from Rs.3.76 lacs during
2008-09.
With cautious credit growth along with rebalancing of portfolio
in favour of high yielding loans in 2009-10, the Bank maintained
NIM at 2.94% as against 2.88% in the previous year.
The Bank has shown marked improvement in expenditure
side parameters. Exhibiting higher operational efficiency, the
cost to income ratio declined to 38.83% in 2009-10 from
42.40% in 2008-09. The ratios of establishment expenses to
total expenses increased to 13.79% in 2009-10 from 13.23%
in 2008-09 while the ratio of other operating expenses to total
expenses increased to 8.27% from 7.96% during the period.
The ratio of operating expenses to average working funds
improved to 1.55% from 1.65%.
Capital adequacy ratio of the Bank stood at 13.62% as on
31.3.2010 as against 13.11% as on 31.3.2009 as per BaselII norms.
The gross non-performing assets of the Bank declined to
1.69% of gross bank credit as on 31.3.2010 as compared to
1.81% as on 31.3.2009. The net non-performing assets
reduced to 0.66% as on 31.03.2010 as compared to 0.72%
as on 31.3.2009. The provision coverage ratio stood at
78.95%. The slippage ratio increased to 1.98% as on
31.3.2010 from 1.72% as on 31.3.2009. The cash recoveries
(inclusive of compromise) and upgradation of NPAs
amounted to Rs.241.44 crore and Rs.210.51 crore
respectively as on 31.3.2010. The Bank also recovered
Rs.229.40 crore from written off debts.
All Bank Finance Ltd., a fully owned subsidiary of the Bank is
registered with SEBI as category-I merchant bankers, earned
a profit after tax (PAT) of Rs.7.15 crore in 2009-10 as compared
to Rs.9.41 crores in 2008-09.

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In order to create a pan-India presence, the bank has opened

27 new branches in 2009-10 with the total number of branches
moving up to 2287 as on 31.3.2010 from 2260 as at
31.3.2009. The Bank has also opened two zonal offices at
Berhampore & Bhagalpur for effective Branch Management.
The Bank has authorization for opening 69 new branches in
the potential centres of the country. The Bank is focusing on
opening branches in the areas where we have less
presence.
To improve fee-based income, the Bank is having tie up for
Life Insurance and General Insurance respectively with LICI
and Universal Sompo General Insurance Company Ltd
((USGICL). The Bank has also tied-up with M/S UAE Exchange
& Financial Services Ltd. for Inward Money Transfer System
through Xpress Money & MoneyGram Channels. For
promotion of mutual-fund products the Bank has tied up with
countrys five leading AMCs namely UTI, Principal-PNB, Kotak
Mahindra, Franklin Tempelton and Relaince Mutual Funds.
Under Cash Management Services (CMS), new avenues have
emerged post migration to CBS with introduction of new

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5

Application Software (cash@will), the Bank has plans to fully

exploit the situation with varied new CMS products. Currently
Bank is having six D.P.s and is in the process of expanding it
at few more strategic locations. The Bank started sale of gold
coin business by tapping the opportunity and business
potential. I am delighted to report that the Bank earned an
income of Rs.3.02 crore during 2009-10 from sale of gold
coins of various denominations.
The Bank launched a number of structured products for
promoting seasonal business. Among the credit products the
Bank has launched schemes for traders, contractors, rice
shellers and nurshing homes. To streamline the process of
speedy sanction, the Bank has established 27 Centralised
Retail Banking Boutiques. The Bank has launched new
schemes like ALLBANK COMMERCIAL VEHICLE FINANCE
for financing of commercial vehicles, HOUSING FINANCE
SCHEME FOR NRI/PIO for granting Housing Finance to NRI/
PIO and schemes for financing IPO/FPO of reputed companies.
The Bank has computerized all its branches and extension
counters. The Bank has taken up the Centralized Banking
Solution exercise on war footing and aims at implementing
100% CBS by December 2010. Real Time Gross Settlement
(RTGS) made live in 896 branches and Online Tax Accounting
System (OLTAS) implemented in 167 designated branches.

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|Ih |nx E M* +{x J+ B E i EG
i i E x ]B, ] <]O], E M +{x i
E E B- Bb V EG E |Ih |nx Ex {
n * BE x< { E { E E-IV h E E{E
-** VMEi i |vE nIi { Epi EG Si
E * Ex + Oh =t E |Ih, @h B Eb
+ b EV vB |nx Ex E =q E x n (=|.)
il nE (ZJb) n + EE B =ti |Ih lx
l{i EB VE VM (S), (=|) + {({)
B n ({S nx{) E E lx { Vn *
i vx + E Ci E k I B @h v
{ |nx Ex E =q E x EEi + n (=|.)
"vx' xE k Ii B @h { Exp J *

Emphasizing on developing the human capital capable of

fostering business expansion, handling international
business & quick decision making with adequate succession
plan, the Bank exposed 13,383 employees/officers to various
training programmes during 2009-10. A training programme
Jagruti was imparted to all the employees of the Bank during
the year. To supplement Banks efforts for speedy
implementation of CBS at its branches, thrust has been given
for imparting training on CBS-end users programme to its
entire workforce in collaboration with TCS, the system
integrator. As a new initiative the Bank has been conducting a
focused programme on managerial effectiveness including
Basel-II awareness among executives in Scale-IV grade. With
an objective of providing training, credit and facilities of
backward and forward linkage to farmers and rural
entrepreneurs, the Bank has established two more Farmers
and Entrepreneurs Training Institutes at Banda (U.P.) and
Dumka (Jharkhand) in addition to those existing at Hazaribagh
(Ranchi), Rae Bareilly (UP), Bolpur (WB) and Debra (West
Midnapore). The Bank has opened Financial Literacy and Credit
Counselling Centres christened Samadhan at Kolkata and
Banda (UP) to provide financial education and credit counselling
to people having limited resources and skills.
As your Bank is celebrating it's 146th year of successful and
meaningful existence, I salute the visionary founders and
acknowledge the services rendered by many unsung heroes
in building this edifice. I would be failing in my duty if I do not
express my gratitude to my predecessor Shri K. R. Kamath
for his valued contribution.

+{E E +{x + lE ={li E 146 x ,

B x`{E E E nn l{E E Ei B <
x l E xh +x xE u |nx E M< + E |i
EiYi |E] Ei * +{x ni x SE V=M n +{x
{i E. +. Ei E ii Mnx E |i +{x + k x E*

Finally, on behalf of the Bank and on my personal behalf, I

would like to thank all share holders, customers, staff
members, Board of Directors, Government of India and Reserve
Bank of India for their continued support and concouragement
at all times. I am confident that with patronage of well wishers,
your Bank will continue to take strides on the profitable growth
path and scale newer heights in future.

+xi , E E + + CiMi i { +{x vE,

OE, ] n, b E xn E, i E B i V E
E |i =xE ii lx + |ix E |i vxn Y{i Ei *
Z E SxiE E ii Ih +{E E |ni E
E {l { +O M il + x< >S< UBM*
n
EEi
30 +|, 2010

With warm regards,

+{E

Kolkata
30th April 2010

(V.{. n+)
+vI B |v xnE
6

Yours sincerely,
(J. P. Dua)

Chairman & Managing Director

ALLAHABAD BANK

<n E
|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 +` E
+ `E {i, 10 Vx, 2010 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 Eighth Annual General Meeting

of the shareholders of the Bank will be held on Thursday, the
10th June, 2010 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 31.03.2010 E E E ix-{j il 31.03.2010

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*""

1.

To discuss, approve and adopt the Balance Sheet, Profit

& Loss Account of the Bank as at and 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 and the Auditors Report on the
Balance Sheet and Accounts.

2. <C] { E Ph*

2.

To Declare Dividend on Equity Shares.

3. EE xx +vx, 1949 + ]Ei E (|v

+ v ={v) Vx 1970 (V < <E {Si
IIVxOO E M ) il <n E ( B `E)
xx 1999 (V < <E {Si IIxxOO E M
) E l {`i EE E{x (={G E +Vx + +ih)
+vx, 1970 (V < <E {Si II+vxII E
M ) E v 9(3)(i) E i E +x +vx E v
19 E +lwh +E E {j E bC]{
{i x E Eh H < +EE H E E E
vE (Exp E z) x i BE vE
xnE E xSi Ex il vx i i xxJi
E{ {i Ex :

3.

To elect one Shareholders Director to fill the casual

vacancy caused by the ceasation of directorship of Shri
Ashok Kumar Mohapatra, from amongst the shareholders
of the Bank (other than Central Government) in terms of
Section 9(3)(i) of The Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 (hereinafter referred
to as the Act) read with The Banking Regulation Act,
1949 and Nationalised Banks (Management And
Miscellaneous Provisions) Scheme 1970 (hereinafter
referred to as the Scheme) and Allahabad Bank (Shares
& Meetings) Regulations, 1999 (hereinafter referred to as
the Regulations) made pursuant to Section 19 of the Act
and to pass the following resolution with or without
modification(s):-

II E{ rtgt Vi E +E E {j E
bC]{ {i x E Eh H < +EE H E
{ I v E (E xp E z)
_____________E E E xnfU E { xSi
E VB + Binu xSi E Vi V < ciXfU E
iJ E n E iJ +li G 11 Vx, 2010 {n
vh EM + 29 Vx 2011 iE {n { x M*

RESOLVED THAT Shri _________________ be and is

hereby elected as director of the Bank from amongst
shareholders (other than Central Government) of the Bank
against the casual vacancy caused by the ceasation of
directorship of Shri Ashok Kumar Mohapatra and to
assume office from the date following the date of this
meeting i.e. Friday ,11th June,2010 and to hold office until
29th June 2011.
By order of the Board

xnE b E +n
lx: EEi
iJ: 30.04.2010

Place : Kolkata

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

Date : 30-04-2010

( J. P. Dua)
Chairman & Managing Director

i{h il E xn] Ex JiE h

(Sx E n . 3)

Explanatory Statements setting out the material facts

(Item No. 3)

n .3

Item No. 3

EE E{x (={G E +Vx + +ih) il k lB

(vx) Exx 2006 V 25 i 2006 | , +x
i E l-l |vx E =x E E V
vE (Exp E <i) u vi {V SEi {V E 32
|ii +vE i E E vE (Exp E <i)
vE ix xnE E xSx EM* inx, Vx E
+x{ vE xnE E ix H 30 Vx 2008
n E E{, +E E {j + {
Vx E vE xnE fuU v b xra; E ix E
+v +li 29 Vx 2011 iE E B M<* in{i,
{ Vx EM xx +vx 1949 E +x E E
xnE E { x + { Vx E bC]{
{i x =i{z +EE H { b. xi EVM
E E E xSi xnE x M* +tME B k {xxh
+{ |vEh (B.B.+<.B.+.), k j, i E
n E { xH x E { +E E
{j x E E bC ] { iM{j n n + 26.06.2009
E E xnE E { x * +E E {j E
bC]{ {i Vx E Eh vE xnE E BE
+EE H M< *

The Banking Companies Acquisition and Transfer of

Undertaking and Financial Institutions (Amendment) Laws
2006, which came into force w.e.f. 25th September 2006, inter
alia provides that in case of Banks where the capital held by
Shareholders (other than Central Government) is more than
32 per cent of the paid up capital, the shareholders of the
Bank (other than the Central Government) would elect three
Directors from amongst the shareholders. Accordingly, in terms
of the Scheme, three vacancies in the post of Shareholders
Directors were filled effective from 30th June, 2008 by electing
Shri. Deveshwar Kumar Kapila, Shri Ashok Kumar Mohapatra
and Shri Yash Paul Mahajan as shareholders directors for a
term of three years i.e. upto 29 June 2011. Subsequently
Shri Yash Paul Mahajan cease to be director of the Bank in
terms of Banking Regulation Act, 1949 and Dr. Vasant Baburao
Kaujalgi deemed to be elected director of the Bank in the
casual vacancy caused by the ceassation of directorship of
Shri Yash Paul Mahajan. Consequent upon his appointment
as member Appellate Authority for Industrial & Financial
Reconstruction (A.A.I.F.R), Ministry of Finance, Govt. of India,
Shri A.K.Mohapatra resigned from the directorship of the Bank
and ceased to be director of the Bank with effect from
26.6.2009. A casual vacancy of the shareholders director has
been caused due to ceassation of directorship of Shri Ashok
Kumar Mohapatra.

SE E E E SEi {V Exp E <i vE

E bM 44.77 |ii (+li 32% +vE) x < , E
E xnE b x nxE 23 S, 2010 E +Vi ciXfU
vE xnE E ={H +EE H E x E xh
ni*

As the holding of the shareholders other than the Central

Government, in the total paid up share capital of the Bank
continues to be 44.77 percent (i.e. above 32%), the Board of
Directors of the Bank at its meeting held on 23rd March ,2010
has decided to fill up the aforesaid casual vacancy of
shareholders director.

< +EE H i xSi xnE E < E + ciXfU

E il +M il +li G 11 Vx, 2010 E
Oh E M x VBM + 29 Vx 2011 iE {n { x
M*

A Director so elected in the casual vacancy shall be deemed

to have assumed office from the date following the date of this
Annual General Meeting i.e. from Friday, 11th June, 2010 and
shall hold office until 29th June 2011.

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 x,
05 Vx, 2010 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 Saturday, 5th June, 2010. 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.

APPOINTMENT OF PROXY

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 = E , 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
x, 05 Vx, 2010 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*

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 had 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 close of business hours
on Saturday, 5th June, 2010. 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*

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 signature(s) 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. (E) vE E V] E xn E Vx :

4. (a) CLOSURE OF REGISTER OF SHAREHOLDERS

+` 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
x, 15 <, 2010 {i, 10 Vx 2010 iE (nx
nx ) n hnde*

The Register of Shareholders and the Share Transfer Books

of the Bank will remain close from Saturday, 15th May, 2010 to
Thursday, 10th June, 2010 (both days inclusive) in connection
with the Eighth Annual General Meeting and for the purpose
of determining the eligibility of the shareholders entitled to
receive the dividend, declared by the Bank.

(J) xSx M x E En vE E +xS E

|Vxl +Ji iJ

(b) RECORD DATE FOR THE PURPOSE OF

ASCERTAINMENT OF SHAREHOLDERS ENTITLED TO
PARTICIPATE IN THE ELECTION

vE (Exp E z) B vE xnE E
xSx M x E En M VxE x G, 14 bRo,
2010 E E{i { BxBbB/bBB u l |ii
E E ivE /vE E V] *

Those shareholders whose names appear on the Banks

Register of Shareholders/Beneficial owners as furnished by
NSDL/CDSL at the close of business hours on Friday 14th May,
2010 shall be entitled to participate in the election of Directors
from amongst the shareholders (other than the Central
Government).

5. E Mix :

5. PAYMENT OF DIVIDEND

APPOINTMENT OF AN AUTHORISED
REPRESENTATIVES

ATTENDANCE SLIP-CUM ENTRY PASS

Payment of dividend, if declared by the Shareholders in the

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

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

a) as Beneficial Owners as at the close of business hours

on Friday, 14th May, 2010 as per the lists to be furnished
by NSDL/CDSL in respect of the Shares held in electronic
form, or

E) G 14 <, 2010 E lli E mbtrt vh

<C]xE J E v Bx.B.b.B./
.b.B.B. u i EB MB ivE , E
S ,
J) iE vh Ex vE E {I 14.05.2010
E E E {i { |{i v +ih +xv E
| Ex E n G, 14 <, 2010 E vE E
V] M *

b) in the Register of shareholders as on Friday, 14th May,

2010 after giving effect to the valid transfer requests
received from the shareholders holding shares in physical
form, before close of business hour as on 14-05-2010.

B vE E ] Pi x E iJ 30
nx E +n V] + ] BVx] +li bu0 YbmeYm
. E v =xE {VEi {i { Cusu stYkdu*

Dividend warrants to such shareholders would be sent by the

Bank through the Registrar and Share Transfer Agents viz.
M/s. MCS Limited, within 30 days from the date of declaration
of dividend on their registered addresses.

6. +nk/+nEi

6. UNPAID/UNCLAIMED DIVIDEND

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*

As per section 10B of Banking Companies (Acquisition and

Transfer of Undertaking) 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 stYkdu*

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 2008-09 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 2008-09 are requested to lodge valid claim(s)
with Registrar and Share 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*

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 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.

+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 u |{i Ex E B |l/BE vE u
vi iIi <B b] |ii E Ei *

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.

BANK MANDATE FOR DIVIDEND OR NATIONAL

ELECTRONIC CLEARING SERVICE (NECS)

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.

10

8. vE xnE E xSx

8.

ELECTION OF SHAREHOLDERS DIRECTOR

8.1 E E xnE E { xSi x E B +{Ii +iB

8.1 QUALIFICATIONS REQUIRED FOR BEING ELECTED

AS A DIRECTOR OF THE BANK

+vx E v 9(3B) E i E +x E B Wbe=Jth

E V E E vE + V E E xnE x Si -

In terms of Section 9(3A) of the Act, a candidate, being a

shareholder of the Bank and who desires to be a Director of
the Bank shall:-

(E) xxJi E BE +vE vi

Yx E +x |{i x SB,l:

(A) have special knowledge or practical experience in respect

of the one or more of the following matters namely:-

E B Oh +l-l, EM, Ei, +lj, k,

v, P =tM, E< +x V Yx + E
+x i W E E E E B ={M *

agriculture and rural economy, Banking, Co-operation,

Economics, Finance, Law, Small Scale Industry, any other
matter the special knowledge and practical experience of
which would, in the opinion of the Reserve Bank of India
is useful to the Bank.

(J) VEi+ E i E |ixvi Ex SB :

(M) Ex, EbM B { E i E |ixvi Ex SB*

(B) represents the interest of depositors; or

+vx E v 9(3BB) E +x E B =n, V E

E vE xx E <SU Ei , E, <xn B < v
W E u - { +vSi EB Vx B +x
xnb E +v { {j B Si i |{i ntule SB*
<E +iH, xSi xnE E |iY{j E J x{ni
Ex SB il Wn < v i W E u lxvi
E Ph {j |ii fUhlt SB*

In terms of Section 9(3AA) of the Act, a candidate being a

shareholder of the Bank and who desires to be a Director of
the Bank should possess fit and proper status based upon
track record, integrity and such other criteria as the Reserve
Bank may notify from time to time in this regard. Further the
elected Director should execute the deed of covenants and is
required to furnish annual declarations as prescribed by the
Reserve Bank of India in this regard.

8.2 E E xnE E { xSi x E B +xiB

8.2 DISQUALIFICATIONS FROM BEING ELECTED AS A

DIRECTOR OF THE BANK

]Ei E (|v + v ={v) Vx, 1970 E Jb 10

E N;tu E +x E< grU xnE x B xnE E {
xH x E B +x M :

In terms of Clause 10 of the Nationalised Banks (Management &

Miscellaneous Provisions) Scheme 1970, a person shall be
disqualified for being appointed, as and for being a Director :

(E) n E n xgxhi + =x
@h +n x E xn E l Zi E ,
+l
(J) n Ei Sk E { M + I x u
= B Pi E M , +l

a) if he has at any time being adjudicated an insolvent or

has suspended payment or has compounded with
creditors; or

(M) n = nb x u Eme B +{v E B rn

X M V xiE +vi +iOi , +l

c)

(P) n E {hEE xnE, |v xnE + +vx

fUe v 9 E ={-v (3) Jb (R) B (S) E +vx E E
ES xi xnE E {n E E ]Ei
E i ]] E +vx 1955 E v 3 E ={v (1) E +vx MXi i ]] E i ]] E
(+xM E) +vx 1959 E v 3 l{i E
+xM E E< E {n vi Ei B,

d) if he holds any office of profit under any Nationalized Bank

or State Bank of India constituted under sub-section (1) of
Section 3 of the State Bank of India Act 1955 or any
subsidiary Bank as defined in Section 3 of the State Bank
of India (Subsidiary Bank) Act 1959 except for holding the
post of whole time Director, including the Managing
Director and Directors nominated under clauses (e) and
(f) of sub-section (3) of Section 9 of the Act from among
the employees of the Bank and,

n , i V E - b{+b . . 46/29.39.001/
2007-08 B b+b . 47/29.39.001/2007-08 nxE
01.11.2007 E +vSx E i E +x {j B Si
x { Vi *

If he is not found to be fit and proper person in terms of

Notification of Reserve Bank of India-DPOD. No. BC. No. 46/
29.39.001/2007-08 and DBOD No. 47/29.39.001/2007-08
dated 1.11.2007.

(C) represents the interest of farmers, workers and artisans

b) if he has been found to be of unsound mind and stands

so declared by a competent court; or

11

if he has been convicted by criminal court of an offence

which involves moral turpitude; or

8.3 xnE E {nv

8.3 TENURE OF DIRECTOR

< Vx E Jb 11(2) E +xh +EE H E x

i xSi xnE +{x {i E EE E +{i +v
iE {n vh EM + inx < E xSi xnE 29
Vx, 2011 iE E B {nvi EM + {xxSx E B
En M*
{xi, E B xnE U +vE +v E B Mi
{n vi x fUhdu*

Pursuant to Clause 11B(2) of the Scheme, a Director elected

to fill the casual vacancy shall hold office for the unexpired
portion of the term of his predecessor and accordingly the
director elected in this meeting shall hold office upto 29th June
2011 and shall be eligible for re-election.

vE E vx +vx E v 9(3+) E + +E]

E Vi VE +x i W E E +vE
E =H +vx E v 9(3+) YJk 9(3yy) =Ji
+{I+ E { x Ex xSi E xnE E =H
+vx E v 9(3)(i) E +vx +{x {n ] Ei *
8.4 xSx E B =n E xEx

Attention of shareholders is invited to Section 9(3B) of

the Act, on the right of Reserve Bank of India to remove
a Director so elected under Section 9(3)(i) of the said Act,
who does not fulfill the requirements of Section 9 (3A)
and 9 (3AA)of the said Act.

E xnE E xSx E B E =n E E<

xEx i iE v x M V iE-

(i) No nomination of a candidate for election as a Director

shall be valid unless:

(E) BE B vE V G 14 <, 2010 x

xSx M x E +Ji iJ E E E gql;b
100 vi x Ei :

(a) He is a shareholder holding not less than 100 Shares of

th
the Bank as on Friday, 14 May, 2010 being the cut off
Date for participating in the election.

(J) G 14 <, 2010 E EE E{x (={G E

+Vx + yk;hK)+vx 1970 ]Ei E (|v
+ v ={v) Vx 1970 E +vx xnE xlu E B
+x ;

(b) As on Friday, 14 May, 2010 he is not disqualified to be

Director under the Banking Companies (Acquisition and
Transfer of Undertakings) Act 1970 or under the
Nationalised Banks (Management & Miscellaneous
Provisions) Scheme 1970;

(M) xEx Ji { x + = { E E BE
B vE E iI x V < +vx E +vx
E { xi +{x +]x u rl=uNfUt E
xSx Ex E En , {xi E n vE E<
E{x i =E u xEx =H E{x E xnE E
E{ u E V EM + n B E Vi i =H
E{ E BE B i |i |vE (k B J), <n
E, M + xE Ei EI, 2, Bx.B. b,
EEi-700 001 E vi E E E |vx E E
{ |i E VBM V = XE E +vI u |hi E
M< V E{ {i E M l il B |i E
E{x E + xEx Z VBM,
(P) xEx E l E xv,nbvE, V]
+x V{ji +vE y:Jt i W E E +x
]Ei E E +vE E I =n u iIi
< + E Ph Mx +i] x E = xEx
E + xSx Jc x E <SUE il
=H +vx =H Vx =H x E +vx xnuE
x E B +x x * =xE u ;w; vi iIi
=xE Hd; h (Vxk) il < v {]Eh,
E, |ii EB MB h =xE VxE B E
+x i n B l , Bin v =xE DtuMKt E
sntk iE ni, B Ph E n =e < VxE E
v E E {hi: Si Ei M*

(c) The nomination is in writing signed by at least one hundred

shareholders entitled to elect Directors under the Act or
by their duly constituted attorneys, provided that a
nomination by shareholder who is a company may be
made by a resolution of the Directors of the said Company
and where it is so made, a copy of the resolution certified
to be true copy by the Chairman of the meeting at which it
was passed shall be dispatched/ deposited to the Head
Office of the Bank addressed to the General Manager
(F&A), Allahabad Bank, Share Department & Investors
Grievance Cell, Head Office 2, Netaji Subhas Road,
Kolkata 700 001 and such copy shall be deemed to be
a nomination on behalf of such Company.

(i)

Provided that such Directors shall not hold office continuously

for a period exceeding six years.

8.4 NOMINATION OF CANDIDATES FOR ELECTION

th

(d) The nomination is accompanied or contains a declaration

signed by the candidate before a Judge, Magistrate,
Registrar or Sub-Registrar of Assurances or other
Gazetted Officer or an officer of the Reserve Bank of India
or any other Nationalized Bank, that he accepts the
nomination and is willing to stand for election and that he
is not disqualified under the said act or the said scheme
or the said regulation from being a director. His/Her
personal details (bio data) duly signed and affirming that
details furnished are true to the best of his knowledge
and belief and also his/her undertaking to keep the Bank
fully informed as soon as possible of such events which
are relevant to the information, subsequent to the
declaration.

12

8.5 vE E S

8.5 LIST OF SHAREHOLDERS

vE E xSx cx l xx E B <n E
( + XE) xx 1999 E xx 64 l=Ji
vE E BE S (<C]xE { x b ) EEi
<n E E {I +i M b}] u .50,000/- E
CwMix EE vE u Jn Vx E B M nxE
18 <, 2010 <n E, |vx E, 2, xiV
b, EEi-700 001 M + xE Ei EI
={v M*

To enable the Shareholders to contest the election, a copy of

the List of Shareholders (in electronic form i.e., C.D.) as
mentioned in Regulation 64 of the Allahabad Bank (Shares &
Meetings) Regulations 1999 will be available at Share
Department & Investors Grievance Cell, Head Office, Allahabad
Bank 2, Netaji Subhas Road, Kolkata 700 001 from Tuesday,
18th May, 2010 onwards for purchase by Shareholders on
payment of Rs. 50,000/- by demand draft in favour of Allahabad
Bank payable at Kolkata.

vE E V] xIh i <n E, M +
xE Ei EI, |vx E 2,Bx.B. b, EEi700 001 E-n E M 18 <, 2010 J
M* n E< vE V] =E E M E BE |i
fUkgqxh |] E +{I Ei i +{Ii |i E gufU 1000
n =E M E B .5/- E n { Mix Ex {
=E +{i = E VBM*

The Register of Shareholders will remain open for inspection

at the Allahabad Bank, Share Department & Investors
Grievance Cell, Head Office 2, Netaji Subhas Road Kolkata
700 001 on all working days commencing from Tuesday, 18th
May, 2010. If any shareholder requires a copy or computer
prints of the register or part thereof, the same shall be supplied
to him on pre-payment of Rs. 5/- for every 1000 words or part
thereof required to be copied/printed.

8.6 xEx E |iiEh

8.6 SUBMISSION OF NOMINATION FORMS

Exp E z vE E E xnE E xSx

cx E <SUE vE E < x] E l MxE ]
+{x xEx (xxi 100) il Ph B vi niV
+li {j l - Vxk, |h{j +n |vE (k B
J), M + xE Ei EI, <n E, |vx
E 2, Bx.B. b, EEi-700001 E {m +vh
x ciXfU E B xi iJ E E Sn nx {
E E-n E x, v, 26 <, 2010 E =E
{ E- E {i E { |ii Ex SB* =H xEx
i {h x SB + < Sx E l Mx
] xxi 100 vE u E { Vx SB
il < SE x { xEx q E V Ei *

Shareholders desirous of contesting the election of the

Directors of the Bank from amongst the shareholders, (other
than the Central Government) should submit their Nomination
Forms (a minimum of 100) in the format annexed to this Notice
along with the declaration form and connected documents
such as testimonials viz., Bio data, certificates etc., to the
General Manager (F&A), Allahabad Bank, Share Department
& Investors Grievance Cell, Head Office, at 2, Netaji Subhas
Road, Kolkata 700 001 on any working day but not less than
fourteen days before the date fixed for the Annual General
Meeting i.e., on or before the close of Business hours of the
Bank on Wednesday, 26th May, 2010. The said nomination
forms should be complete in all respects and should be duly
filled in by a minimum of 100 shareholders in the format
annexed to this notice, failing which, the nominations are liable
to be rejected.

8.7 xEx E I

8.7 SCRUTINY OF NOMINATIONS

(i)

xEx E I {i, 27 <, 2010 E x xEx

E |{i E B xi iJ E n E |l E-n E
E VBM + n E< xEx v x { Vi i
Eh +Ji Ex E n = q E n VBM*

(i) Nominations shall be scrutinized on Thursday, 27th May,

2010 the first working day following the last date fixed for
the receipt of the nominations and in case any nomination
is not found to be valid, the same shall be rejected after
recording the reasons there for.

(ii)

i W E u 01 x, 2007 E V EB MB
] Bb |{ Mxn E +x, b E xEx i
u xEx E I E VBM*

(ii) Nominations shall also be subjected to scrutiny by the

Nomination Committee of the Board in terms of the Fit
st
and Proper Guidelines dated 1 November 2007 issued
by the Reserve Bank of India.

(iii)

n xSx Vx +EE rhrU nu;w E BE(1)

v xEx i < |E xi =n iiE xSi
Z VBM i xEx { x E +i iJ iE
+{x xEx { x i * < li xSi xnE
E x B {i |Ei E VBM + < |Vxl
+Vi ciXfU E< xSx x M *

(iii) If there is only one (1) valid nomination for the casual
vacancy to be filled by the election, the candidate so
nominated shall be deemed to be elected forthwith
provided he does not withdraw his nomination upto the
last date fixed for withdrawal of the nomination. In such a
case his name and address shall be published as so
elected and there shall not be any election at the meeting.

13

(iv)

E< xSx x E n +l n xSi EB Vx

xnE E J v xEx E J +vE i
=n E x S-{j |Ei EB VBM + Vx
=n E {I i ntudt, xSi M*

(iv) In the event of an election being held or if valid nominations

are more than the number of Director to be elected, the
names of the candidates shall be published in the
newspapers and the candidate polling the majority of the
votes at the meeting shall be elected.

(v)

xSi xnE E x VBM E =x G,

11 Vx, 2010 E {nOh E *
E< n x { =E x{]x <n E ( +
ciXfU) xx 1999 E xx 67 E +x E VBM*

(v) Director so elected shall be deemed to have assumed

office from Friday, 11th June, 2010.

(vi)

(vi) If there is any dispute, the same will be settled as per

Regulation 67 of the Allahabad Bank (Shares & Meetings)
Regulations 1999.

8.8 xEx E { Vx

8.8 WITHDRAWAL OF NOMINATIONS

n E< =n +{x xEx { x Si i

v, 2 Vx, 2010 E E E E- E {i E vqJo E
B Ex E En M*

If any candidate desires to withdraw his nomination, he would

be entitled to do so, at any time prior to close of Business
hours of the Bank on Wednesday, 2nd June, 2010.

8.9 inx E +vE

8.9. VOTING RIGHTS

+vx E v 3 E ={-v (2<) E N;tu E +x Exp

E z E E E< vE +{x u vi Ex
E i E E vE E E inx +vfU E BE
|ii +vE inx +vE E |M Ex E En x
M*
8.10 |ME +vx, Vx + x +n =rh

In terms of sub-section (2E) of Section 3 of the Act, no

shareholder of the Bank, other than the Central Government,
shall be entitled to exercise voting rights in respect of any
shares held by him/her in excess of one per cent of the total
voting rights of all the shareholders of the Bank.

|ME +vx, Vx + x +n =rh Mx EB

MB + < Sx E M *

The extract of relevant Acts, Scheme, and Regulations are

annexed to and form part of this Notice.

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

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

9. COMPULSORY TRADING OF SHARES OF THE BANK IN

DEMATERIALISED (DEMAT) FORM

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.

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 Registrars and Share Transfer
Agent.

10. +n

10. UNCLAIMED SHARES

+n E h xxx :

The details of unclaimed shares are as under:

i)

ii)
iii)

01.04.2009 E lli E/+n

2009-10 E nx l E Ji
+ii
31.03.2010 E lli E/
+n

8.10 EXTRACT OF RELEVANT ACTS, SCHEME AND

REGULATIONS

Pursuant to the directive given by SEBI, trading of our Bank

shares in Dematerialized form has been made compulsory for
all investors.

i)

6686

on 01-04-2009
ii)

Shares outstanding/unclaimed as

2225

iii) Shares outstanding/unclaimed as

on 31-03-2010

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

6686

Shares claimed and transferred to Beneficiary

account during the year 2009-10

4461

2225

4461

The voting rights in respect of the unclaimed/outstanding

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

14

11. ;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< *

11. COPIES OF BALANCE SHEET

12. vE E EB :
nb mt;t ntude n vE i +{x EB |ii E
iE E E =xE | =k nx +x *

12. SHAREHOLDERS QUERIES

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.

It will be appreciated if shareholders submit their queries, if

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

13. +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*
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

13. COMMUNICATION WITH SHARE TRANSFER AGENT

14. +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 *
15. 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. 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.

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)
77/2A, Hazra Road
Kolkata-700 029
Tel : 033-2454-1892, 033-2454-1893
Fax: 033-2454-1961
E-mail: allahabadbank.grievance@yahoo.co.in

15. 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:

fkUvle mraJ
Nugh rJCtd YJk rlJuNfU rNfUtg; fUG
|vx fUtgotg
2, Bx.B.b, EEi - 700 001
=qhCtM : 033-22420878
ViUm : 033-22107424
< bu - investors.grievance@allahabadbank.in

|vE (k B J)
<n E, |vx E
2, Bx.B.b, EEi - 700 001
n : 033-22420899
C : 033-22107424
<- : gmfa@allahabadbank.in
The General Manager (F&A)
Allahabad Bank, Head Office
2, Netaji Subhas Road,
Kolkata- 700 001
Telephone No. 033-22420899
Fax No. 033- 22107424
E-mail - gmfa@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

16. +x Sx :

16. 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.
By order of the Board

xnE b E +n
lx : EEi
nxE : 30.04.2010

Place : Kolkata
Date : 30-04-2010

(V.{. n+)
+vI B |v xnE
15

( J.P. Dua)
Chairman & Managing Director

Mi +vx, Vx B x +n
=rh-xnE E xSx

EXTRACTS OF RELEVANT ACTS, SCHEME

AND REGULATIONS ETC

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

v 9(3)(i) E i E +x vE xnE E xH v
3 E ={-v (2+) E +vx V {V E {h E +v { E
VBM* < v G: EE xx +vx 1949,
EE E{x (={G E +Vx + +ih) +vx 1970 E
Mi v+ il <n E ( + XE) xx 1999
E Mi x E vE E VxE E B xS {x:
|ii E V -

In terms of Sections 9(3)(i) of the Banking Companies

(Acquisition and Transfer of Undertakings) Act 1970,
shareholder Directors shall have to be appointed depending
upon the extent of capital issued under clause (c) of sub-section
(2B) of Section 3. The relevant Sections of the Banking
Regulations Act 1949, the Banking Companies (Acquisition
and Transfer of Undertaking) Act 1970, Nationalised Banks
(Management & Miscellaneous Provisions) Scheme 1970 and
the relevant Regulations of Allahabad Bank (Shares &
Meetings) Regulations 1999 respectively in this regard, are
reproduced below for the information of the shareholders.

1. EE xx +vx, 1949 E Mi vB

RELEVENT SECTIONS OF THE BANKING REGULATION

ACT 1949

x xnE E |iv
v 16(1)
i xMi E EE E{x E xnE b E< B
H xnE x M V E +x EE E{x E xnE
*
@h B +O { xxvx
v 20
1) E{x +vx, 1956 (1956 E 1) E v 77 E
|iE i E i B E< EE E{x (E) +{x E |ii { E< @h +O V x
EM,
(J) xxJi E =E + E< @h +O
V Ex E B E< +vx x EM i) +{x E xnE E,
ii) E B E V =E E xnE E i
Mn, |vE, ES M]Ei E { ,
iii) E B E{x E V E EE E{x E{x
+vx 1956 (1956 E 1) E v 25 E +vx
E V]Ei E{x E +xM x E B
E E{x E ( vE E{x E +xM E)
VE E< xnE E EE E{x E xnE,
ES M]Ei V =E {{i i
, +l
iv) E B .H E VE i <E E< xnE
Mn M]Ei *
2) n E EE E{x u V E M E< @h
+O B E V iJ E @h +O n M l
= iJ E ={-v (1) E Jb (J) |k i i =H
@h +O V Ex E B +vx + i (
EE v (vx) +vx 1968 (1968 E 58) E
v 5 E | x E n {i B | E { EB MB
+vx E +xh EE E{x u V E Vi
i EE E{x E n =H @h +O B = { n
V E, n E< , @h +O E V E
xvi +v E i n E< +v xvi x E M<
i =H v 5 E | BE E {i E { Ex
E B E< E VBM; {xi E i W E E
n EE E{x Ji { < v fUtu< +nx
|{i i i @h +O E E +v E BE

Prohibition of Common Directors

Section 16(1)
No Banking Company incorporated in India shall have as a
Director on its Board of Directors any person who is a Director
of any other Banking Company.
Restrictions on Loans and Advances
Section 20
1) Notwithstanding anything to the contrary contained in
Section 77 of the Companies Act 1956 (1 of 1956), no
Banking Company shall
(a) grant any loans or advances on the security of its own
share, or
(b) enter into any commitment for granting any loan or
advance or advance to or on behalf of
(i) any of its Directors
(ii) any firm in which any of its Directors is interested
as partner, manager, employee or guarantor or
(iii) any company not being a subsidiary of the Banking
Company or a Company registered under Section
25 of the Companies Act 1956 (1 of 1956), or a
Government Company of which (or the subsidiary
of the holding company of which) any of the
Directors of the Banking Company is a Director,
Manager, Employee or guarantor or in which he
holds substantial interest, or
(iv) any individual in respect of whom any of its Directors
is a partner or guarantor
2) Where any loan or advance granted by a Banking Company
is such that a commitment for granting it could not be have
been made if Clause (b) of sub-section (1) had been in
force on the date on which the loan or advance was made
(or is granted by Banking Company after the
commencement of Section 5 of the Banking Laws
(Amendment) Act 1968 (58 of 1968), but in pursuance of a
commitment entered into before such commencement,
steps shall be taken to recover the amounts due to the
Banking Company on account of the loan or advance
together with interest, if any, due thereon within the period
stipulated at the time of the grant of loan or advance or
where no such period has been stipulated, before the expiry
of one year from the commencement of the said Section
5; Provided that the Reserve Bank of India may, in any
case on application made in writing made to it by the

16

Banking Company in this behalf, extend the period of the

recovery of the loan or advance until such date, not being
a date beyond the period of three years from the
commencement of the said Section 5 and subject to such
terms and conditions, as the Reserve Bank of India may
deem fit :
Provided further that this sub-section shall not apply if and
when the Director concerned vacates the office of the
Director of the Banking Company, whether by death,
retirement, resignation or otherwise.
3) No loan or advance, referred to in sub-section (2), or any
part thereof shall be remitted without the previous approval
of the Reserve Bank of India, and any remission without
such approval shall be void and of no effect.

xSi iJ iE g EM {i B iJ ={H v 5
E | ix E +v { E E< iJ x M
+ B xvx B i E +vvx M V i
W E =Si Z:
{xi + E n EM E{x E vi xnE E {n
=E i, xk, {niM E Eh +xl J
i i ={-v M x M*
3)

={-v (2) xn] E< @h +O =E E< M

i W E E { +xi E x |i x E VBM
+ B +xnx E x E< |h x B +| M*

4) Where any loan or advance referred to in sub-section (2),

payable by any person, has not been repaid to the Banking
Company within the period specified in that sub-section,
then such period shall, if he is a Director of such Banking
Company on the date of the expiry of the said period, be
deemed to have vacated his office as such on the said
date.
Explanation in this Section
(a) Loan or advance shall not include any transaction
which the Reserve Bank of India may, having regard to
the nature of the transaction, the period within which,
and the manner and circumstances in which, any
amount due on account of the transaction is likely to
be realized, the interest of the depositors and other
relevant considerations, specify by general or special
order as not being a loan or advance for the purpose of
this Section;
(b) Director includes a member of any Board or
Committee in India constituted by a Banking Company
for the purpose of managing, or for the purpose of
advising it in regard to the management of, all or any of
its affairs.
5) If any question arises whether any transaction is a loan or
advance for the purpose of this Section, it shall be referred
to the Reserve Bank of India, whose decision thereon shall
be final.

4)

V ={-v (2) xn] E H u n E @h

+O E Mix = ={-v xn] +v E i
EE E{x E x E Vi i B H u, n
=H +v E {i E iJ E B EE E{x
E xnE , =H iJ E =E {n H E M
Z VBM*
< v vi {]Eh
(E)
"@h +O" {n B E< xnx x M
V i W E xnx E { E,= +v E
VE i + = i B {li E Vx
xnx E Eh n E E =M E Vx E
x il VEi+ E i B +x Mi |i
fUtu vx Ji B x +n u < v
E |Vxl @h +O E { xn] x E:
(J)

5)

xnE {n |v E |Vxl =E
Ex nx E |Vxl E EE
E{x u M`i i E b i E E<
n *
n < v E< |x =Xi E < v E |Vxl
E< xnx @h +O i = i W E E
V VBM + iiv =xE xh +i M*

2. RELEVENT SECTIONS OF THE BANKING COMPANIES

(ACQUISITION AND TRANSFER OF UNDERTAKINGS)
ACT 1970
Restrictions on voting rights
Section 3(2E)
No shareholder of the corresponding new Bank other than the
Central Government shall be entitled to exercise voting rights
in respect of any shares held by him in excess of one per cent
of the total voting rights of all the shareholders of the
corresponding new Bank.

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

1970, E Mi vB
inx +vE E xxvx
v 3(2z0)
Exp E z { xB E E E< vE +{x u
vi Ex E i { xB E E vE E
E inx +vE E BE |ii +vE inx +vE E
|M Ex E En x M*
xnE b E M`x
v 9(3)
n v 3 E ={-v (2+) E Jb (M) E +vx V
{Vi) E |nk {V E |ii +xvE i BE
xnE +xvE,
ii) E |nk {V E |ii +vE {i k
|ii +xvE i n xnE +xvE,

Composition of the Board of Directors

Section 9(3)
Where the capital issued under clause (c ) of sub-section (2B)
of Section 3 is :(i) not more than sixteen per cent of the total paid up
capital, not more than one Director,
(ii) more than sixteen per cent of the total paid up capital
but not more than thirty two per cent of the total paid up
capital, not more than two Directors,

17

iii)

(iii) more than thirty two per cent of the total paid-up capital,
not more than three Directors,

E |nk {V E k |ii +vE i ix

xnE +xvE,
E xSx Exp E z xnE u +{x
E VB*
{xi E n EE E{x (={G E +Vx B
+ih) B k l v (vi) +vx 2006
E +i E = { { xB E xSi
xnE E J, ={ Jb (I) ={ Jb (II) ={
Jb (III), V E , xn] J +vE
i B +i E { xSi +vE J E
xnE Vx lxvi |E E +x xk
M il E +v < { xk E
B E< Ii{i n Ex E {j x M*

to be elected by the shareholders other than the Central

Government from amongst themselves.
Provided that in case the number of directors elected,
on or before the commencement of the Banking
companies (Acquisition and Transfer of Undertaking)
& Financial institutions Laws (Amendmant) Act 2006,
in corresponding new Bank exceed the number of
directors specified in sub clause (I) or sub clause (II),
or sub clause (III), as the case may be, such excess
number of directors elected before such
commencement shall retire in such manner as may be
specified in the scheme and such directors shall not
be entitled to claim any compensation for premature
retirement of their term of office.
Section 9(3A)

v 9(3+)
=H Jb (i) E +vx xSi xnE E -

The Directors to be elected under the said clause

(i) shall
(A) have special knowledge or practical experience in
respect of the one or more of the following namely agriculture and rural economy, Banking, Co-operation,
Economics, Finance, Law, Small scale industry, Any
other matter the special knowledge of, and practical
experience of which would, in the opinion of the Reserve
Bank of India is useful to the corresponding new Bank.

(+) xxJi E BE +vE E i Yx

E +x |{i x SB l- E B Oh
+ll, EM, Ei, +lj, k, v, P
=tM, E< +x VE Yx + V E
+x i W E E { x E E B
={M *

(B) represents the interest of depositors; or

(+) VEi+ E i E |ixvi Ehu : +l

(<) EE, EM, B { E i E |ixvi Ehu*
v 9(3++)
={ v 3(+) E x {O E B +vx ix b |Si
+x Exx xi E {i i E i B ,E< H
={ v (3) E Jb (i) E +x i iE xnE E {
xSi x E V EM V iE +{x {k, ixX
il W E u - { +vSi EB Vx B
+x xnb E +v { '{j B Si i' |{i H x
*

(C )represent the interest of farmers, workers and artisans

Section 9 (3AA)
Without prejudice to the provision of sub-section 3(A) and
notwithstanding anything to the contrary contained in the Act
or in other laws for the time being in force, no person shall be
eligible to be elected as a Director under Clause (i) of SubSection (3) unless he is a person having fit and proper status
based upon the track record, integrity and such other criteria
as Reserve Bank of India may notify from time to time in this
regard.
Section 9 (3AB)

v 9(3++)
i W E ={ v (3++) E +iMi V +vSx '{j
B Si i' xvi Ex E |vE, B |vE E
{, B |vE E B +{x Vx |G il +x B
V E +E Z MB = |ME xn]
E Ei *
v 9(3+)
V i W E E E v 9 E ={-v (3) E
Jb (i) E +vx xSi E { xB E E E< xnE
={-v (3+) E +{I+ E { x Ei i B xnE
B E E x< E HH + nx E n +n u B
xnE E =E {n ] Ei + < |E = {n
]x E n =E lx { E +x B H E V xnE E
{ ={-v (3+) E +{I+ E { Ei , i iE Vi
EM V iE +M E x XE E { xB E E
vE u E { xnE E xSx x E Vi
il < |E Vi H E { xB E E vE
u xnE E { E { xSi E M Z
VBM*

The Reserve Bank may also specify in the notification issued

under sub section (3AA), the authority to determine the fit and
proper status , the manner of such determination , the
procedure to be followed for such determination and such other
matters as may be considered necessary or incidental thereto.
Section 9 (3B)
Where the Reserve Bank is of the opinion that any Director of
a corresponding new Bank elected under clause (i) of subsection (3) of section (9) does not fulfill the requirements of
sub-section (3A) it may after giving to such Director and the
Bank a reasonable opportunity of being heard, by order,
remove such Directors and on such removal, the Board of
Directors shall co-opt any other person fulfilling the requirement
of sub-section (3A) as a Director in place of the person so
removed till a Director is duly elected by the shareholders of
the corresponding new Bank in the next annual general
meeting and the person so co-opted shall be deemed to have
been duly elected by the shareholders of the corresponding
new Bank as a Director.

18

Obligation as to Fidelity and Secrecy

xi B M{xi E v vi :
v 13(2)
|iE xnE, E lx b i E n, J{IE, E { xB E E E< +vE +x ES
E x E { ii +xS ={hi xi
B M{xi E v Ph EM*
3.

Section 13(2)
Every Director, member of a local Board or a Committee, or
Auditor, Adviser, Officer or other Employee of a corresponding
new Bank shall before entering upon his duties, make a
declaration of fidelity and secrecy in the form set out in the
Third Schedule.
3. RELEVENT CLAUSES OF THE NATIONALISED BANKS
(MANAGEMENT AND MISCELLANEOUS PROVISIONS)
SCHEME 1970

]Ei E (|v + v ={v) Vx, 1970, E

Mi Jb

xSi xnE E {nv

Jb 9 (4) :

Terms of office of elected Director

E< xSi xnE ix E B {n vi EM + {xxSi

EB Vx E En M : {xi B E< xnE U
+vE +v E B Mi {n vi x EM*
xnE E +xi :
Jb 10 :
E< H xnE E { xH x + xnE xx E B
+x M (E) n E n xxhi +
ntu =x @h +n x E +{x xn
E l Zi E : +l

An elected Director shall hold office for three years and shall
be eligible for re-election Provided no such Director shall hold
office continuously for a period exceeding six years

(J) n Ei Sk E E I x
u B Pi E M : +l

(b) if he has been found to be of unsound mind and stands

so declared by a competent court; or

(M)

(c) if he has been convicted by criminal court of an offence

which involves moral turpitude; or

Clause 9 (4) :

Disqualification of Directors
Clause 10
A person shall be disqualified for being appointed as, and for
being a Director :(a) if he has at any time being adjudicated an insolvent or
has suspended payment or has compounded with his
creditors or

n E nb x u E B +{v
E B rn X M V xiE +vi
+iOi :
(P) n E {hEE, xnE, |v xnE
+ +vx E v 9 E ={-v (3) E Jb
(R) B (S) E +vx E E ES xi
xnE E {n E E ]Ei E
i ]] E +vx 1955 E v 3 E
={-v (1) E +vx MXi i ]] E (+xM
E) +vx, 1959 E v 3 l {E
E +xM E E< E {n vi Ei
*
xnE E {n E {iM
Jb 11 :
1. n E< xnE Jb 10 xn] E +xi E
+vx i xnE b E Mi ix XE
+vE U]] E x +x{li i i Z
VBM E =x +{x {n E {iM E n +
ii{Si =E {n J VBM*
2. +vx E v 9 E ={-v 3 E Jb (J) Jb
(M) y:Jt Fkz (D) b mk=rCo; |v xnE y:Jt
rl=uNfU i ygG y:Jt E< {hEE xnE fuUk
mhfUth fUtu rtrF; lturxm =ufUh yvlu v= mu gtd vt
=u mfU;t ni ;:t E u B {niM E E E
B Vx { Z VBM E =x +{x {n E
{iM E n , il E< +x xnE Exp E
E Ji { x] nE +{x {n E {iM E
Ei + B {niM Exp E u {niM
v {j E {i { | M*

(d) if he holds any office of profit under any nationalized

Bank or State Bank of India constituted under subsection (1) of Section 3 of the State Bank of India Act
1955 or any subsidiary Bank as defined in Section 3 of
the State Bank of India (Subsidiary Banks) Act 1959,
except for holding the post of a whole-time Director,
including the Managing Director and Directors
nominated under clauses (e) and (f) of sub-section (3)
of Section 9 of the Act from amongst the employees of
the Bank.
Vacation of office of Directors
Clause 11
1. If a Director becomes subject to any of disqualification
specified in clause 10 or is absent without leave of the
board for more than three consecutive meetings thereof,
he shall deemed to have vacated his office as such and
thereupon his office shall become vacant.
2. The Chairman or a whole-time Director including the
Managing Director or a Director referred to in clause (b) or
clause (c) or clause (d) of sub section 3 of Section 9 of the
Act may resign his office by giving notice thereof in writing
to the Central Government and on such resignation being
accepted by that Government shall be deemed to have
vacated his office; and any other Director may resign his
office by giving notice thereof in writing to the Central
Government and such resignation shall take effect on the
receipt of the communication of the resignation by the
Central Government.

19

3. Where any vacancy occurs in the office of a Director other

than an elected Director, it shall be filled in accordance
with sub-section (3) of Section 9 of the Act.

3.

n xSi xnE z E xnE E {n J

i i +vx E v 9 E ={-v (3) E
+x VBM*
E xSi xnE E {n ] Vx
Jb 11 + :
Exp E E z +v +vE {V vi Ex
vE i {i E{ u v 9 E ={-v (3) E
Jb (1) E +vx xSi E xnE E =E {n ] Ei
+ =H H E x E B =E lx { E +x H
E xSi E Ei *

Removal from office of an elected Director

Clause 11A :
The shareholders, other than the Central Government, may,
by a resolution passed by a majority of the votes of such
shareholders holding in the aggregate, not less than one half
of the share capital held by all such shareholders, remove any
Director elected under Clause (i) of the sub-section (3) of
Section 9 and elect in his stead another person to fill the
vacancy.

xSi xnE E J {n E Vx
Jb 11 + :
(1) E xSi xnE E EE E {i { E<
H x { =H H xSx u VBM :

Filling of vacancy in the office of elected Director

Clause 11B
(1)

{xi E n H E +v U E x E
x i =H H xnE V Ei *

Where any vacancy occurs before the expiry of the term

of office of an elected Director, the vacancy shall be filled
by election
Provided that where the duration of vacancy is likely to
be less than six months, the vacancy may be filled in by
the remaining Directors

(2) ={-Jb (1) E +vx, lli, xSi Vi E<

H +{x {i E EE E +{i + E B {n
vi EM*
xnE u +{x i E |E]Eh
Jb 12 (8) :

(2)

n E< xnE ]Ei E u =E + E Vx

EB Vx E B |ii E n, @h, X
|i |iIi: +|iIi: v Ji = =E i
i Mi {li E =E VxE +x E n l
Q +{x i E { E |E]Eh xnE b E I
EM il xnE b E = XE V B E
n, @h, X |i { S- E Vi , i
iE ={li x M V iE = VxE |{i Ex E
|Vxl +x xnE u =E ={li E +{I x E VB
il V xnE E ={li E < |E +{I E Vi
E B n, @h, X |i { +{x i x nM
{xi, E < ={-Jb +i] E< i B xnE { M
x M n E :
i) E{x +vx 1956 (1956 E 1) l{i E
B VxE E{x i ii |k E v E
+vx l{i E xM E E i n
|ii +xvE |nk {V vi Ex E< vE
(xnE z) VE l V ]Ei E x
E< n, @h, X |i E Ex E |i
Ji , +l

A Director who is directly or indirectly concerned or interested

in any contract, loan, arrangement of proposal entered into or
proposed to be entered into by or on behalf of the nationalized
Bank, shall, as soon as possible after the relevant
circumstances have come to his knowledge, disclose the
nature of his interest to the Board and shall not be present at
the meeting of the Board when any such contract, loan,
arrangement or proposal is discussed unless his presence is
required by the other Directors for the purpose of eliciting
information and no Director so required to be present shall
vote on any such contract, loan, arrangement or proposal :

ii) ]Ei E E E< B +vE +x ES V

xnE (+vx E v 9 E ={-v (3) E Jb (R)
Jb (S) lxn]) *

(ii) an officer or other employee of the nationalized Bank, if he

is a Director (referred to in clause (e) or clause (f) of subsection (3) of Section 9 of the Act)

<n E ( + XE) xx 1999 E Mi

xx

RELEVENT REGULATIONS OF ALLAHABAD BANK

(SHARES & MEETINGS) REGULATIONS 1999

A person elected or co-opted, as the case may be, under

sub clause (1) shall hold office for the unexpired portion
of the term of his predecessor.

Disclosure of interest by Directors

Clause 12(8)

Provided that nothing contained in this sub-clause shall apply

to such Director by reason only of his being :
(i) a shareholder (other than a Director) holding not more than
two percent of the paid up capital in any public Company
as defined in the Companies Act 1956 (1 of 1956), or any
corporation established by or under any law for the time
being in force in India or any co-operative society, with
which or to which the nationalized Bank has entered into
or made, or proposed to enter into or make, a contract,
loan, arrangement or proposal; or

Exercise of rights of joint holders / Voting at general

meetings

H vE E +vE E |M Ex/ x ciXE inx

20

Regulation 10 :

xx 10 :
n E< n +vE H E x { i V iE
inx Ex, E |{i, x] V Ex, E vi
E +x , E +ih E UcE, V]
+Ei |l H E =E BEj vE x VB*

If any share stands in the names of two or more persons, the

first named in the register shall as regards voting, receipt of
dividend, service of notices and all or any other matters
connected with the Bank except the transfer of shares be
deemed to be the sole holder thereof.

x XE xSi EB Vx xnE
xx 63 :
i) v 9 E ={-v 3 E Jb (i) E +vx E E E x
ciXfU E xnE E xSx Exp E z B
vE u +{x S E VBM VxE x V]
nV *
ii) n E x ciXfU E xnE E xSx E Vx
i =E Sx ciXfU E +Vx v Sx E
VBM, B |iE Sx xSi EB Vx xnE E
J B =x H E h xn] EB VBM VxE
i xSx E Vx *
Nugh"thfUt fUe mqae
rJrlbgl 64 &
i) Rl rJrlgbt fuU rJrlbgl 63 fuU Wv-rJrlgbl (i) fuU y"el
rfUme rl=uNfU fuU rlJtoal fuU gtuslt:o hrsxh b WrtrF;
Yumu Nugh"thfUt fUe mqae ;igth fUe stYde rslfuU tht
rl=uNfU rlJtora; rfUgt stlt ni>
ii) WU mqae b Nug"thfUt fuU ltb, WlfuU hrsx[ef]U; v;u, WlfuU
tht "trh; YJk tur;; Nught fUe mkFt, Nught fuU hrsx[efUhK
fUe ;theF ytih Yumu b;t fUe mkgt yk;rJo hnude rsn Ju
rlJtoal fuU rtY rlg; ;theF fUtu ciXfU b =ulu fuU nfU=th ntdu
;:t WU mqae fUe r;gt ciXfU fuU rtY rlg; ;theF mu fUb
mu fUb ;el m;tn vqJo rl=uNfU bkzt gt ck" mrbr; tht
rlg; bqg vh "tl fUtgtotg b ytJu=l vh rJf{Ug fuU rtY
Wvt" ntde>

Directors to be elected at General meeting

Regulation 63
(i) A Director under clause (i) of sub-section 3 of Section 9
shall be elected by the shareholders on the register, other
than the Central Government from amongst themselves in
the general meeting of the Bank.
(ii) Where any election of Directors to be held at any general
meeting, the notice thereof shall be included in the notice
convening the meeting. Every such notice shall specify
the number of Directors to be elected and the particulars
of vacancies in respect of which the election is to be held.
List of shareholders
Regulation 64
(i) For the purpose of election of a Director under subregulation (i) of Regulation 63 of these regulations, a list
shall be prepared of shareholders on the register by whom
the Director is to be elected.
(ii) The list shall contain the names of the shareholders, their
registered addresses, the number and denoting numbers
of shares held by them with the dates on which the share
are registered and the number of votes to which they will
be entitled on the date fixed for the meeting at which the
election will take place and copies of the list shall be
available for purchase at lease three weeks before the date
fixed for the meeting at a price to be fixed by the Board or
the Management Committee, on application at the Head
Office.

rlJtoal fuU rtY Wbe=Jtht fUt ltbtkfUl

rJrlgbl 65 &
i)
rl=uNfU fuU rlJtoal nu;w rfUme Wbe=Jth fUt ltbtkfUl ;c ;fU
Ji" ln ntudt sc ;fU rfU (fU) Jn cfU fuU 100 Nugh "trh; fUhlu Jttt fUtuRo Nugh"thfU
l ntu,
(F) Jn ltbtkfUl fUe tr; fUe ykr;b ;theF fUtu Rm
yr"rlgb gt Rm gtuslt fuU y"el rl=uNfU ntulu fuU
rtY rlhrno; l ntu;t ntu &
(d) Wmlu Nugh btkd fUe htrN fuU Cwd;tl fuU rtY rlg; ykr;b
;theF fUtu gt Wmmu vqJo yvlu tht "trh; cfU fuU Nught
fUe ctc; Nugh btkd fUe mCe htrN fUt Cwd;tl yfuUtu gt
yg fuU mt: mkgw U v mu ln fUh r=gt ni &
(D) ltbtkfUl rtrF; v mu ln ni ytih Wm vh Rm
yr"rlgb fuU y"el rl=uNfUt fUtu rlJtora; fUhlu fuU rtY
nfU=th fUb mu fUb YfU mti Nugh"thfUt gt WlfuU tht
mgfU v mu rlg; yxleo fuU n;tGh ln ni & vhk;w
gn rfU gr= Nugh "thfU fUtuRo fUkvle ntu ;tu WU fUkvle
fuU rl=uNfUt fuU mkfUv tht ltbtkfUl rfUgt st mfU;t
ni ytih snt Yumt rfUgt st;t ni Jnt rsm ciXfU b gn
vtrh; rfUgt dgt ni WmfuU ygG tht btrK; mkfUv

Nomination of candidates for election

Regulation 65 :
(i) No nomination of a candidate for election as a Director
shall be valid unless,
(a) he is a shareholder holding not less than 100 shares in
the Bank
(b) he is on the last date for receipt of nomination, not
disqualified to be a Director under the Act or under the
Scheme
(c) he has paid all calls in respect of the shares of the
Bank held by him, whether alone or jointly with others,
on or before the last date fixed for the payment of the
call;
(d) the nomination is in writing signed by at least one
hundred shareholders entitled to elect the Directors
under the Act or by their duly constituted attorney,
provided that a nomination by shareholder who is a
Company may be made by a resolution of the Directors
of the said Company and where it is so made, a copy
of the resolution certified to be true copy by the
Chairman of the meeting at which it was passed shall

21

fUe YfU mg r; cfU fuU "tl fUtgtotg fuU vtm urM;

fUe stYde ;:t WU r; fUtu Yume fUkvle fUe ytuh mu
rfUgt dgt ltbtkfUl btlt stYdt&
(E) rfUme gtgt"eN, =kztr"fUthe, cebt hrsx[th gt Wvhrsx[th gt yg ht[egf]U; cfU fuU rfUme yr"fUthe y:Jt
Cth;eg rhsJo cfU gt rfUme yg ht[egf]U; cfU fuU rfUme
yr"fUthe fuU mbG Wbe=Jth tht n;tGrh; Rm ytNg
fUt fUtuRo DtuMKt-vt ltbtkfUl fuU mt: mktl ln rfUgt
st;t ni gt Wmb yk;rJo ln hn;t ni rfU Wmu ltbtkfUl
JefUth ni ytih Jn rlJtoal fuU rtY F\zt ntulu fUt RAwfU
ni ;:t gt ;tu Rm yr"rlgb fuU y"el gt Rm gtuslt gt
Rl rJrlgbt fuU y"el rl=uNfU ntulu mu ylno ln ni>
ii)

be dispatched to the Head Office of the Bank and such

copy shall be deemed to be a nomination on behalf of
such Company.

fUtuRo Ce ltbtkfUl ;c ;fU Ji" ln ntudt sc ;fU Jn mCe

mkc =;tJust mrn; mCe ;hn mu vqKo v b cfU fuU
"tl fUtgtotg b rfUme fUtgo-r=Jm fUtu ciXfU fuU rtY rlg;
;theF mu fUb mu fUb 14 r=l vqJo t; l ntu>

(e)

the nomination accompanied or contains a

declaration signed by the candidate before a Judge,
Magistrate, Registrar or Sub-Registrar or Assurance
or other Gazetted Officer or an Officer of the Reserve
Bank of India or any other nationalized Bank, that he
accepts the nomination and is willing to stand for
election, and that he is not disqualified either under
the Act or the Scheme or these regulations from being
a Director.

(ii)

No nomination shall be valid unless it is received with

all the connected documents complete in all respects
and received, at the Head office of the Bank on a
working day not less than fourteen days before the date
fixed for the meeting.

Scrutiny of nominations

ltbtkfUl fUe mkJeGt

rJrlgbl 66

Regulation 66 :

ltbtkfUl fUe mkJeGt tr; fuU rtY rlg; ;theF fuU :b

fUtgor=Jm fUtu fUe stYde ytih gr= fUtuRo mqalt Ji" ln vtRo
st;e ni ;tu fUthK yrCrtrF; fUh;u nwY Wmu yJefUth fUh
r=gt stYdt> gr= rlJtoal tht Che stlu Jtte rfUme rJNuM
rhrU fuU rtY fuUJt YfU ne Ji" ltbtkfUl ntu ;tu Rm fUth
ltbtkrfU; Wbe=Jth ;f tt rlJtora; btlt stYdt ytih Rm
fUth rlJtora; grU fUt ltb YJk v;t fUtrN; rfUgt
stYdt> Yume =Nt b Rm gtuslt:o cwttRo dRo ciXfU b fUtuRo
rlJtoal ln ntudt ytih gr= ciXfU YfU btt WvgwoU rlJtoal
fuU gtuslt:o cwttRo dRo ntu ;tu Jn h ntu stYde>

(i) Nominations shall be scrutinized on the first working

day following the date fixed for the receipt of nomination
and in case any information is not found to be valid,
the same shall be rejected after recording the reason
thereof. If there is only one valid nomination for any
particular vacancy to be filled by election, the candidate
so nominated shall be deemed to be elected forthwith
and his name and address shall be published as so
elected. In such an event there shall not be any election
at the meeting convened for the purpose and if the
meeting had been called solely for the purpose of the
aforesaid election it shall stand cancelled.

rlJtoal ntulu fUe =Nt b gr= Ji" ltbtkfUl rlJtora; rfUY

stlu Jttu rl=uNfUt fUe mkgt mu yr"fU ntu ;tu rsm
Wbe=Jth fuU vG b mcmu yr"fU b; v\zu nt Wmu rlJtora;
btlt stYdt>
iii) rfUme rJbtl rhrU fUtu Chlu fuU rtY rlJtora; rfUme
rl=uNfU fUtu Wm ;theF fuU ct= fUe ;theF fUtu v= d{nK
rfUgt dgt mbSt stYdt rsm ;theF fUtu Jn rlJtora; rfUgt
st;t ni gt rfUgt dgt mbSt st;t ni>

(ii) In the event of an election being held, if valid

nominations are more than the number of Directors to
be elected, the candidate polling the majority of votes
shall be deemed to have been elected.

i)

ii)

(iii)

A Director elected to fill an existing vacancy shall be

deemed to have assumed office from the date following
that on which he is or is deemed to be elected.

Election disputes
Regulation 67
(i)
if any doubt or dispute shall arise as to the
qualification or disqualification of a person deemed or
declared to be elected, or as to the validity of the
election of a Director, any person interested, being a
candidate or shareholder entitled to vote at such
election, may, within seven days of the date of the
declaration of the result of such election, give intimation
in writing thereof to the Chairman and Managing
Director of the Bank and shall in the said intimation
give full particulars of the grounds upon which he/she
doubts or disputes the validity of the election.

rlJtoal mkck"e rJJt=

rJrlgbl 67 &
i)
gr= rl=uNfU fuU v b rlJtora; mbSu dY gt DturM;
rfUme grU fUe yno;t gt ylno;t fuU mkck" b gt rl=uNfU
fuU rlJtoal fUe Ji";t fuU mkck" b fUtuRo mk=un gt rJJt=
Wvt ntu;t ni ;tu Yumu rlJtoal b b;=tl fUhlu fuU rtY
nfU=th YJk rn;c fUtuRo Wbe=Jth gt Nugh"thfU Yumu
rlJtoal fUt vrhKtb DturM; ntulu fUe ;theF mu mt; r=l
fuU Ce;h cfU fuU ygG YJk ck" rl=uNfU fUtu rtrF; v
b WmfUe mqalt =u mfuUdt/mfuUde ytih WU mqalt b
rlJtoal fUe Ji";t vh mk=un gt rJJt= fUhlu fuU yt"th vh
vqht gtuht =udt/=ude>
ii) Wv rJrlgb (i) fuU y"el mqalt t; ntulu vh cfU fUt
ygG YJk ck" rl=uNfU gt WmfUe ylwvr:r; b fUtgovttfU
rl=uNfU Yumu mk=un gt rJJt= fUtu YfU Yume mrbr; fUtu
WmfuU rJrlag fuU rtY rlr=o fUhudt stu ygG YJk ck"

(ii) On receipt of an intimation under sub-regulation (i) the

Chairman and Managing Director or in his absence,
the Executive Director of the Bank shall forthwith refer
such doubt or dispute for the decision of a committee
consisting of the Chairman and Managing Director or

22

in his absence, the Executive Director and any two of

the Directors nominated under clauses (b) and (c) of
sub-section 3 of section 9 of the Act.

rl=uNfU gt WmfUe ylwvr:r; b fUtgovttfU rl=uNfU ytih

yr"rlgb fUe "tht 9 fUe Wv-"tht (3) fuU Fkz (F) YJk
(d) fuU y"el ltrb; rfUnek =tu rl=uNfU mu rbtfUh clude>
iii) Wv rJrlgb (ii) b rlr=o mrbr; Yume stka fUhude simt
Jn ytJgfU mbSu ytih gr= Jn vt;e ni rfU rlJtoal Ji"
:t ;tu Jn rlJtoal fuU DturM; vrhKtb fUe vwr fUhude,
y:Jt gr= Jn vt;e ni rfU rlJtoal Ji" ln :t ;tu Jn
stka thkC ntulu fuU ;em r=l fuU Ce;h lgt rlJtoal
fUhtlu mrn; Yumt yt=uN vtrh; fUhude YJk Yuumu rl=uN =ude
simt Wl vrhr:r;gt b mrbr; fUtu Wra; tdu>

(iii)

iv) Rm rJrlgbl fuU ylwmhK b Yume mrbr; fuU yt=uN YJk

(iv) An order and direction of such committee in pursuance

of this regulation shall be conclusive.

rl=uN rlatgfU ntdu>

ygtg

The committee referred to in sub-regulation (ii) shall

make such enquiry as it deems necessary and if it finds
that the election was valid election, it shall confirm the
declared results of the election, or if it finds that the
election was not valid election, it shall, within thirty days
of the commencement of the enquiry make such order
and given such directions including the holding of a
fresh election as shall in the circumstances appear just
to the committee.

VI

Chapter VI

Nugh "thfUt fuU b; =ulu fuU yr"fUth

b; =ulu fuU yr"fUth fUt rl"tohK

Voting Rights of Shareholders

rJrlgbl 68 &
(i) yr"rlgb fUe "tht 3 (2z0) b yk;rJo Wvck"t fuU yg"el
rfUme mtbtg ciXfU fUe ;theF fuU vqJo hrsxh ck= rfUY stlu
fUe ;theF fUtu Yumu Nugh"thfU fUtu, rsmfUt ltb hrsxh b
=so rfUgt dgt ntu, Yume ciXfU b nt: WXtfUh YfU b; =ulu
fUt yr"fUth ntudt ytih b;=tl ntulu fUe r:r; b WmfuU tht
"trh; rfUY stlu Jttu gufU Nugh fuU rtY Wmu YfU b; =ulu
fUt yr"fUth ntudt>
(ii) yr"rlgb fUe "tht 3 (2z0) r=l fuU Wvck"t fuU yg"el
g:tvqJtuoU v b b;=tl fUhl fuU rtY nfU=th gufU Yumu
Nugh"thfU fUtu, stu fUkvle l ntu ytih grUd; v mu gt vhtuGe
tht Wvr:; ntu gt stu fUkvle ntu ytih mgfU v mu tr"f]U;
r;rlr" tht gt vhtuGe tht Wvr:; ntu, WvrJrlgbl (i)
b simt RmfuU Wvh fUr:; ni, nt: WXtfUh YfU b; =ulu fUt
yr"fUth ntudt ;:t b;=tl ntulu fUe r:r; b WmfuU tht "trh;
rfUY stlu Jttu gufU Nugh fuU rtY Wmu YfU b; =ulu fUt
yr"fUth ntudt>
vefUhK - Rm ygtg b IIfUkvleOO mu ;tvgo rfUme rldrb;
rlfUtg mu ni
(iii) rfUme mtbtg ciXfU b Wvr:; ntulu YJk b;=tl ntulu YJk
b;=tl fUhlu fuU nfU=th cfU fuU Nugh"thfUt fUtu yvlu :tl
vh yvlu vhtuGe fuU v b Wvr:; ntulu YJk b;=tl fUhlu
fuU rtY rfUme yg grU fUtu (atnu Jn fUtuRo Nugh"thfU ntu
gt lne) rlgwU fUhlu fUt nfU ntudt vhk;w Rm fUth rfUme
vhtuGe fUtu ciXfU b ctutlu fUt fUtuRo yr"fUth ln ntudt>
mgfU v mu tr"f]U; r;rlr" tht b;=tl
rJrlgbl 69 &

Regulation 68 :

(i)

Determination of voting rights

(i) Subject to the provisions contained in Section 3 (2E)
of the Act, each shareholder who has been registered
as a shareholder on the date of the closure of the
register prior to the date of a general meeting shall, at
such meeting, have one vote on show of hands and in
case of a poll shall have one vote for each share held
by him.
(ii)

Subject to the provision in Section 3 (2E) of the Act,

every shareholder entitled to vote as aforesaid who not
being a Company is present in person or by proxy or
who being a Company is present by a duly authorized
representative, or by proxy shall have one vote on a
show of hands and in case of a poll shall have one
vote for each share held by him as stated hereinabove
in sub-regulation (i)
Explanation for this chapter, Company means any
body corporate

(iii)

Shareholders of the Bank entitled to attend and vote

at a general meeting shall be entitled to appoint another
person (whether a shareholder or not) as his proxy to
attend and vote instead of himself; but a proxy so
appointed shall not have any right to speak at the
meeting.

Voting by duly authorized representative

Regulation 69
(i) A shareholder, being the Central Government or a
Company, may by a resolution, as the case may be,
authorize any of its officers or any other person to act
as its representative at any general meeting of the
shareholders and the person so authorized (referred
to as a duly authorized representatives in these
regulations) shall be entitled to exercise the same
powers on behalf of the Central Government of the
Company which he represents as if he was an individual
shareholder of the Bank. The authorization so given
may be in favour of two persons in the alternative and
in such a case any one of such persons may act as a

fUtuRo Nugh"thfU atnu Jn fuU mhfUth gt fUtuRo fUkvle ntu, mkfUv

tht g:tr:r; yvlu rfUn yr"fUthe yg grU fUtu Nugh"thfUt
fUe rfUme mtbtg ciXfU b yvlu r;rlr" fuU v b fUtgo fUhlu
fuU rtY tr"f]U; fUh mfuUdt ytih Rm fUth tr"f]U; grU fUtu
(Rl rJrlgbt b IImgfU v mu tr"f]U; r;rlr"OO fuU v b
rJrlr=o) fuU mhfUth gt fUkvle fUe ytuh mu rsmfUt Jn
r;rlr"J fUh;t ni, Rm fUth NrUgt fUt gtud fUhlu fUt nfU=th
ntudt btltu Jn cfU fUt grfU Nugh"thfU ntu> Rm fUth fUt
tr"fUth ylwfUv;& =tu grUgt fuU vG b r=gt st mfU;t ni
23

ii)

duly authorized representative of the Central

Government /Company.

ytih Yume =Nt b Wlb mu fUtuRo grU fuU mhfUth fUkvle fuU
mgfU tr"f]U; r;rlr" fuU v b fUtgo fUh mfuUdt>
fUtuRo grU cfU fuU Nugh"thfUt fUe rfUme ciXfU b fUkvle fuU mgfU
v mu tr"f]U; r;rlr" fuU v b ;c ;fU Wvr:; ln ntudt
gt b;=tl ln fUhudt sc ;fU mgfUT v mu tr"f]U; r;rlr"
fuU v b WmfUe rlgwrU mkc"k e mkfUv fUe YfU r;, stu Wm
ciXfU fuU ygG tht btrK; mgr; ntu rsmb mkfUv vtrh;
rfUgt dgt :t, cfU fuU "tl fUtgtotg fuU vtm ciXfU fuU rtY
rlg; ;theF mu fUb ath r=l vqJo sbt l fUe dRo ntu>

(ii)

No person shall attend or vote at any meeting of the

shareholders of the Bank as the duly authorized
representative of the Company unless a copy of the
resolution appointing him as a duly authorized
representative certified to be true copy by the Chairman
of the meeting at which it was passed shall have been
deposited at the Head Office of the Bank not less than
four days before the date fixed for the meeting.

i V E E +vSx b+b . 46/

29.39.001/2007-08 B b+b . 47/29.39.001/200708 nxE 1 x 2007

Notification of Reserve Bank of India-DBOD No. BC No.

46/29.39.001/2007-08 and DBOD No. 47/29.39.001/2007-08
dated 1st November 2007

i V E x xxi +vSi E :-

The Reserve Bank of India has notified as under :-

E E xnE b u < |Vxl xH E M< ltbtkfUl

i u |nx E Vx ] Bb tpvh i {j E
x E< ltbtkfUl v x M * ltbtkfUl E =n
vi IhE Mi, +x il Yi Ij, {k ix`i
v +iH VxE Mx E Vx SB iE ltbtkfUl
i =n E ] Bb tpvh E i { xh E*
E |vE / xE BV E |iE x] n{x
E E k l B MB @h SEi SE, vi
=n E b E xnE E { xSi EB Vx +M
B +x{H x nM*

No nomination shall be valid unless Fit and Proper status is

accorded by the Nomination Committee appointed by the
Board of Directors of the Bank for this purpose. The
Nominations should accompany additional information about
the candidates to enable the Nomination Committee to decide
on the Fit and Proper status with regard to educational
qualification, experience and field of expertise, track record
and integrity of the candidates. Adverse notice of any authority
/ regulatory agency or insolvency or default of any loan from
any bank or financial institution would make the respective
candidate unfit and improper to be elected as a director on
the Board.

24

Rttntct= cfU
"tl fUtgtotg & 2 Yl. Ym. htuz, fUtutfUt;t 700 001

DtuMKt
b...............................................................................vwt/vwte/vle, e/eb;e .................................................................................
rlJtme.................................................................................................................................Y;=Ttht vwr fUh;t nq/fUh;e nq rfU,
fU. b r=ltkfU 14 bRo, 2010 fUtu (E E {i {) gtle rlJtoal b Ctd tulu fUe yrCrtrF; ;theF fUtu cfU fuU
................................................... RrJxe Nugh "trh; fUhlu Jttt/Jtte Nugh "thfU nq, ytih
F. bwSu (i) f]UrM YJk d{tbeK y:ogJ:t (ii) crfUkd (iii) mnfUtrh;t (iv) y:oNtt (v) rJt (vi) rJr" (vii) tDw Wtud, gt
......................................................... fUt (rsmfUt rJNuM ttl YJk rsmb gtJntrhfU ylwCJ Cth;eg rhsJo cfU fUe htg b cfU
fuU rtY Wvgtude ni) rJNuM ttl ni gt gtJntrhfU ylwCJ ni ytih b yr"rlgb fUe "tht 9 fUe Wv-"tht 3y fUe N;tu fuU ylwmth
sbtfU;toyt gt f]UMfUtuk, fUtbdtht YJk rNrvgt fuU rn; fUt r;rlr"J fUh;t/fUh;e nq rsmfuU btK Jv Binu mkckr"; btKvt
;w; fUh;t/fUh;e nqk ytih
d. b ..................................................(mkgt) ltbtkfUl JefUth fUh;t/fUh;e nq ;:t
D. b Rttntct= cfU fuU rl=uNfU fuU rlJtoal fuU rtY RAwfU nq, YJk
E. b cfUfUthe rJrlgbl yr"rlgb 1949, cfUfUthe fUkvle (Wvf{Ubt fUt ysol ytih yk;hK) yr"rlgb 1970, ht[egf]U; cfU (ck"
ytih rJrJ" Wvck") gtuslt 1970 Rttntct= cfU (Nugh ytih ciXfU) rJrlgb 1999 fuU Wvck"t fuU y"el cfU fUt rl=uNfU ntulu fuU
rtY ylno ln nq
a. b rfUme ht[egf]U; cfU gt Cth;eg xux cfU yr"rlgb 1955 fUe "tht 3 fUe Wv-"tht (1) fuU y"el drX; Cth;eg xux cfU
gt Cth;eg xux cfU (ylwMkde cfU) yr"rlgb 1959 fUe "tht 3 b g:tvrhCtrM; rfUme ylwMkde cfU b l ;tu fUtuRo ttC fUt v=
"trh; fUh;t/fUh;e nq ytih l ne WmfUt fUtuRo fUboathe nq>
A. b yvlt gr;d; rJJhK mktl fUh;t/fUh;e nq stu buhe yr"fU;b stlfUthe ytih rJJtm fuU ylwmth mg YJk vqKo n>
s. b Jal =u;t/=u;e nq rfU b cfU fUtu =x Dxltyt mu, gr= fUtuRo ntu, stu Rm DtuMKt fuU ;=lk;h Drx; ntuk, stu gnt =e dRo mqaltyt
;:t cfU fuU rl=uNfU fuU v b buhu rlJtoal mkck"e r;tt-vt rJtuF fUtu rlvtr=; fUhlu nu;w mkd; nt, fuU cthu buk g:tNeD{ vqKo;gt
mqra; fUh;t hnqdt / fUh;e hnqde>
n;tGh
ltb
Nught fUe mkgt
vksef]U; VUturtgtu mk.
(gr= Rtux[rlfU v b ln ntu)
ze ve ytRoze mk.
(gr= Rtux[rlfU v b ntu)
C<] ytRoze mk.
(gr= Rtux[rlfU v b ntu)
:tl
;theF
rfUme gtgt"eN, =kztr"fUthe, cebt hrsx[th gt Wv-hrsx[th gt rfUme
yg htsvrt; yr"fUthe gt Cth;eg rhsJo cfU gt Rttntct= cfU gt rfUme
ht[egf]U; cfU fuU yr"fUthe fUe bwnh mrn; n;tGh
(stu ttdq l ntu Wmu fUtx =>)
*

25

WvgwoU DtuMKt buhu mbG n;tGrh; fUe dRo>

*

r=ltkfU mrn; n;tGh YJk bwnh

ALLAHABAD BANK
HEAD OFFICE : 2 NETAJI SUBHAS ROAD , KOLKATA - 700 001

Declaration
I,............................................son/daughter/wife of Shri/Smt.
.....................resident of __________________________ hereby confirm that :
a.

I am a shareholder holdingequity shares of the Bank on 14th May, 2010 (close of Business Hours) i.e. the
cut off date for participating in the elections, and

b.

I have special knowledge or practical experience in (i) agriculture and rural economy, (ii) banking, (iii) co-operation, (iv)
economics, (v) finance (vi) law, (vii) small scale industry, or.(special knowledge of
and practical experience of which in the opinion of Reserve Bank of India would be useful to the Bank) and I represent the
interest of the depositors or farmers, workers and artisans, in terms of sub-section 3A of Section 9 of the Act and as an
evidence thereof, I submit herewith the relevant testimonials, and

c.

I accept the nominations numbering.and

d.

I am willing to contest for the election of Director of Allahabad Bank, and

e.

I am not disqualified from being a director of the Bank under the provisions of the Banking Regulations Act, 1949, the
Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 Nationalised Banks (Management and
Miscellaneous Provisions) Scheme 1970, the Allahabad Bank (Shares & Meetings) Regulations 1999.

f.

I neither hold any office of profit nor on an employee of any Nationalised Bank or State Bank of India constituted under subsection (1) of Section 3 of the State Bank of India Act 1955 or any subsidiary bank as defined in Section 3 of the State Bank
of India (Subsidiary Banks) Act 1959.

g.

I enclose my personal details which are to the best of my knowledge and belief true and complete; and

h.

I undertake to keep the Bank fully informed, as soon as possible, of events, if any, which take place subsequent to this
declaration which are relevant to the information provided hereto and to execute the Deed of Covenants upon my election
as a Director of the Bank.
Signature
Name
No. of shares
Regd. Folio No.
(if not dematerialized)
DP ID No. (if dematerialized)
Client ID No. (if dematerialized)
Place
Date

*Signature with Seal of Judge, Magistrate, Registrar or

Sub-Registrar of Assurance, or other Gazetted Officer or
an officer of the Reserve Bank of India or Allahabad Bank or
any Nationalized Bank.
(Delete whichever is not applicable.)

26

The above declaration signed before me

*Signature & Seal with date

=n E Vxk i |{
G
.
I
1
2
3
4

ix {i

]x B C x
< +<b
l Ji J (vil) il = +E {b
E x {i V HMi E h n E Vi
(vil B n E M< +E h E |i{
Mx E )
IhE MiB (E{ +i E |h{
i{i |h{j Mx E )
Mi {X B +x (E{ {X / B
+x E |hJv i{i |h{j Mx E)

8
9
10

=n E grUd; h
=n E { x
{i E { x
Vx il
l {i

11

Mi Yx B +x (E{ EE E{x (={G

E +Vx B +ih +vx,1970) E v 9 (3-+)
E n ) E{ Yx B +x E |hJv
i{i |h{j Mx E
+x E< Sx, V =n |ii Ex Si

II

=n E Mi i

12

=n E =x in,n E< ,E S V E
v Ji (E{x +vx,1956 E v
6 B +xS 1 B E +x)
=x E{x E S Vx =n S Ji
(E{x +vx,1956 E v 299(3)(E); v 300
B EM x +vx 1949 E v 20 E n )
E{x E S Vx =n EM rJrlgb
+vx 1949 E v 5 (BxRo) E { E +iMi
{{i S vi Ei
E(E) E x Vx =n b E n
(vi {n E +v E h n )
E =n u ={H E 12 13 n dRo
E E{x u ix ={H xv B M-xv
vB ,n E<
B ,n E< , Vx =n E 12
13 n dRo E{x, E +x E E/k
lyt |{i E M< @h v+ E v {
SEEi /SEEi

13
14
15
16
17

27

FORMAT FOR BIODATA OF THE CANDIDATE

Sl.
No.

Particulars

I.

Personal Details of the Candidate

Full Name of the Candidate

Fathers Name in Full

Date of Birth

Permanent Address

Present Address

Telephone & Fax Number Email id

Permanent Account Number (PAN) and name and address of

the Income Tax Circle where personal tax returns are filed
(Copy of PAN and acknowledged copy of the latest IT return
filed to be attached).

Educational Qualifications (please attach self attested certificates evidencing the qualification).

Relevant background and Experience (Please attach self attested certificates evidencing knowledge/and experience).

10

Relevant Knowledge and Experience ( Please refer section

9(3-A) of the Banking Companies ( Acquisition & Transfer of
Undertaking Act, 1970) Please attach self attested certificates
evidencing knowledge/and experience).

11

Any other information which the candidate desires to furnish

II

Relevant Relationships of the Candidate

12

List of relatives of the Candidate, if any, who are connected

with the Bank (In terms of Section 6 and Schedule 1A of the
Companies Act, 1956).

13

List of entities in which the candidate is considered as being

interested {Refer section 299(3)(a); Section 300 of the Companies Act, 1956 and Section 20 of the Banking Regulations
Act 1949.

14

List of entities in which the candidate is considered as holding substantial interest within the meaning of section 5 (ne)
of the Banking Regulation Act 1949.

15

Name of Bank(s) in which the candidate is or has been a

member of the Board (provide details of period during which
such office was held).

16

Fund and Non Fund Facilities if any presently availed by the

candidate or any of the entities listed in 12 and 13 above from
the Bank.

17

Cases, if any, where the candidate or entities listed in 12 and

13 above are in default or have been in default in the past in
respect of credit facilities obtained from the Bank or any other
Bank/Financial Institution.

28

III

E ={v E Eb

18

=n E E MiB

IV

=n E r E M< E<, n E<

19

n =n E E MXx/xE E n
i E{ =n E r i E M< {
nr {hi +xxE E<, n E< E
h C =n E E E / VM
| x E M *

20

+lE v B x E =Px Ex i =n E
r B / E 12 13 n dRo E{x E
E r i EB MB nr {hi
+M,n E< E h

21

xnE E r { EB MB i nr
{hi yt{vE +M E h *
C =n E E{x +vx 1956 E v 274 E
+iMi +M E n V Ei

22
23

C =n =H E 12 13 n dRo E{x
E E r E M BV E +xv {
E< VS E M< ?

24

C =n E x/ x / / =i{n/
+E/n x / +x V |vE E
vxE +{I+ E =Px Ei B n { M ?
n B i E{ h n *

25

C =n =H E 12 B 13 =Ji
E{x x E ,E,<c,BB, <in
V M] |iE x] |{i E ?

n I III E v +x E< {]Eh / Sx B

B +x VxE V Si xh x
Mi Z Vi *

lx :
nxE :

iI

]{{h - i E + VB, B x Ex { =n xi E V Ei *

29

III

Records of professional achievements.

18

Professional achievements of the candidate, if any.

IV

Proceedings, if any, against the Candidate.

19

If the candidate is a member of a professional association/body, details of disciplinary action, if any, pending
or commenced or resulting in conviction in the past
against the candidate or whether the candidate has
been banned from entry of any profession/occupation
at any time.

20

Details of prosecution, if any, pending or commenced

or resulting in conviction in the past against the candidate and/or against any of the entities listed in 12 and
13 above for violation of economic laws and regulations.

21

Details of criminal prosecution, if any, pending or commenced resulting in conviction in the past against the
Director.

22

Whether the candidate attracts any of the disqualification envisaged under section 274 of the Companies
Act 1956.

23

Has the candidate or any of the entities listed in 12 and

13 above been subject to any investigation at the instance of Government Department or Agency?

24

Has the Candidate at any time been found guilty of

violation of rules / regulations / legislative requirements
by customs / excise / income tax / foreign exchange /
other revenue authorities? If so, please furnish particulars.

25

Whether the Candidate or entities listed in 12 and 13

above has at any time come to the adverse notice of a
regulator such as SEBI, RBI, IRDA, MCA FEMA etc.,

Any other explanation / information in regard to items I

to III and other information considered relevant for judging fit and proper.

Place:
Signature :

Date:

Note : All the coloumns must be filled in failing which the candidature may be rejected

30

Rttntct= cfU
"tl fUtgtotg & 2 Yl. Ym. htuz, fUtutfUt;t 700 001

ltbtkfUl VUtbo
muJt b,
ygG YJk ck" rl=uNfU,
Rttntct= cfU,
2, Yl. Ym. htuz,
fUtutfUt;t - 700 001
rg bntu=g,

rl=uNfUt fUt rlJtoal

ytvfUe mqalt r=ltkfU............................................................................fuU mk=Co b b, ..................................................................
Rttntct= cfU fUt YfU Nugh"thfU, stu G, r=ltkfU 14 bRo, 2010 gtle rlJtoal b Ctd tulu fuU rtY yrCrtrF; ;theF fUtu
h. 10/-gufU .......................................fuU RrJxe Nugh "trh; fUh;t/fUh;e nq, Binu e/eb;e ................................................
vwt/vwte/vle................................................................................................................rlJtme ........................................................
fUtu r=ltkfU 10 sql 2010 fUtu ytgturs; ntuluJtte cfU fuU Nugh"thfUt fUe +] E mtbtg ciXfU b cfUfUthe fUkvle (Wvf{Ubt fUt
ysol ytih yk;hK) yr"rlgb, 1970 fUe "tht 9 (3) (i) b g:tWvckr"; cfU fuU Nugh"thfUt fUt r;rlr"J fUhlu Jttu Rttntct= cfU
fuU rl=uNfU fuU v b rlJtora; rfUY stlu nu;w ltrb; fUh;t/fUh;e nq>
n;tGh
ltb
Nught fUe mkgt
vksef]U; VUturtgtu mk.
(gr= Rtux[rlfU v b ln ntu)
zeve ytRo ze mk.
(gr= Rtux[rlfU v b ntu)
C<] ytRo ze mk.
(gr= Rtux[rlfU v b ntu)
:tl
;theF
rxvrKgt &
1)
gr= rfUme rldrb; rlfUtg tht ltbtkfUl rfUgt st;t ni ;tu ltbtkfUl VUtbo fuU mt: Wm ciXfU fuU ygG fuU n;tGh mu rl=uNfU
bkzt tht vtrh; mkfUv fUe YfU btrK; mg r; mktl fUe stle atrnY rsmb gn vtrh; rfUgt dgt ni>
2)
Wbe=Jth fUt ltbtkfUl fUhlu Jttu Nugh"thfUt fuU n;tGh cfU fuU Nugh yk;hK Ysx fuU vtm Wvt" lbqlt n;tGh mu rbtlu
atrnY>
31

ALLAHABAD BANK
HEAD OFFICE : 2 NETAJI SUBHAS ROAD , KOLKATA - 700 001
NOMINATION FORM
To
The Chairman & Managing Director,
Allahabad Bank,
2, Netaji Subhas Road,
Kolkata700 001
Dear Sir,

ELECTION OF DIRECTORS
With reference to your Notice Dated ,I,........ a shareholder of Allahabad Bank
holdingequity shares of Rs. 10/- each as on Friday, the 14th May, 2010 (Close of Business Hours)
i.e., the cut off Date for participating in the election, do hereby nominate.
Shri/Smt...........................son/daughter./wife of ......................... Residing at
. for being elected as a Director of Allahabad Bank representing the shareholders of the Bank as provided in Section 9(3)(i) of The Banking Companies (Acquisition and Transfer of
Undertakings) Act 1970 at the Eighth Annual General Meeting of the Shareholders of the Bank to be held on 10th June 2010.
Signature
Name
No. of shares
Regd. Folio No.
(if not dematerialized)
DP ID No. (if dematerialized)
Client ID No. (if dematerialized)
Place
Date

Notes :
1) In case nomination is made by a body corporate, the Nomination Form should be accompanied by a certified
true copy of the resolution passed by the Board of Directors under the signature of the Chairman of the meeting
at which it was passed.
2)

Signature of the shareholders nominating the candidature should match with the specimen
signature available with the Share Transfer Agent of the Bank.

32

<n E

ALLAHABAD BANK

xnE E {]

DIRECTORS REPORT
APRIL 2009 TO MARCH 2010

+| 2009 S 2010
xnE b E 31 S 2010 E {i i E E J{Ii
Jh i xnE E {] |ii Ei B +ii |zi
*
|vx SS B h

The Board of Directors has immense pleasure in presenting

the Directors Report along with the audited Statement of
Accounts of the Bank for the year ended 31st March 2010.

+lE {o

ECONOMIC SCENE

i +ll + E n iV Mi E
Ex +ll x M< + <x Ji: n Eh
E +lE E] { { +li BE i
+ll E] E Exp x l + n <E E ii
l VE J Eh l: P SE E +i * E
Zx EU =J Ex E V E P =i{n r
n iV, xi iV, +tME =i{nx Vi,
V Miv E {xilx, {V +i E + g <
|ni E + < Ex E{] G E EiE
Ei il @h r +n* <x x E i E En E
Vi n V UM M E*

Indian economy is now worlds second fastest growing

economy and has managed to pass through the global crisis
mainly due to the twin reasons viz. it was not at the centre of
the crisis and its growth was well-balanced reliant mostly on
domestic drivers. Among the recent trends, worth mentioning
are: acceleration in GDP growth, turnaround in exports, strong
recovery in industrial production, revival of stock market
activities, revival in capital inflows and indications of positive
corporate sales leading to signs of improved profitability and
credit growth etc. All these put together have strengthened
Indias feet to leap forward.

20 +| 2010 E Pi i V E E E pE B
@h xi E +x 2010-11 i +ll 8.00% E
r E +xx V 2009-10 7.2% 7.5% iE *
2010 +tME r 15.1% V n +v {
{VMi (44.4%) + ={H x (29.9%) E M
x r * xh, Jxx B ti Ij x
2010 G: 16.0%, 12.2% + 6.7% E r nV E*

As per RBIs Annual Monetary and Credit policy, announced

on 20th April, 2010, Indian economy is expected to grow by
8.00% in 2010-11, having grown by 7.2% to 7.5% in 2009-10.
Industrial growth has posted a growth of 15.1% in February
10 riding on the commendable performance of Y-O-Y capital
goods (44.4%) and consumer durables (29.9%) growth.
Manufacturing, mining and electricity sectors recorded growth
of 16.0%, 12.2% and 6.7% respectively in February 2010.

+|- 2009-10 +v i U =tM E r n 5.3% l

V 2008-09 E { 11 x E nx -n- +v E
2.9% r i *

For the April-February 2009-10 period, the growth rate for the
six industries was 5.3%, which was better than the 2.9%
year-on-year increase during the corresponding 11 months of
2008-09.

V E =i{nx 7.3% g (2009 E = x

0.6% E {I) VE E E =i{nx 6.8% (6%), ]
5.8% (8.3%), ESS {] 4% (-6.2%), {Ei {] =i{n
0.8% (0.5%) + i ] 0.9% (2.4%) E r *

Production of electricity rose by 7.3% in February (against 0.6%

in the same month of 2009), while increasing by 6.8% (6%)
for coal, 5.8% (8.3%) for cement, 4% (minus 6.2%) for crude
petroleum, 0.8% (0.5%) for refined petro-products and 0.9%
(2.4%) for finished steel.

< k +|- E nx n x 701,073.7 x

x] V {n E V 2008-09 E { 11 x E 658,736.3
x x] 6.4% +vE *

During April-February this fiscal, the country generated

701,073.7 million units of electricity, a 6.4% jump over the
658,736.3 million units in the first 11 months of 2008-09.

< r E BE J Eh: ={H i+ E =i{nx < i

r * Y E +x 2009-10 2011-12 iE xV
={M ii r |ii *

The growth was mostly driven by a sharp rise in consumer

durables production. Private consumption is anticipated to rise
steadily in 2009 -10 to 2011-12 period as per experts.

i E Ij 2009-10 E 1.4% E r E ix
2010-11 5.9% r x E x *

Agricultural sector in India is expected to grow by 5.9% in 201011 as compared to a mere 1.4% growth in 2009-10.

MANAGEMENT DISCUSSION AND ANALYSIS

33

i xi Vx 2009 E 12.86 x b E ix
-n- +v { Vx 2010 14.36 x b iE
{S M V 11.5% +vE * |k V x E x
+ 2010 i xi MM 165 x b iE {Sx
E x * E i E vx Ji B i
xiE hxiE { x< xB i *

Indian Exports reached $14.36 billion in January 2010,

compared to $12.86 billion in January 2009 on a month-onmonth basis, which is up by 11.5 %. This trend is most likely to
continue and in 2010, Indian exports are likely to close roughly
about $165 billion. Considering the situation across the world
Indian exporters are strategically finding new avenues.

E +lE n =x E |G + SE + BE
E =i E {Si E +ll E xB i < V
2009 E 1.1% E r E {I 2010 gE 3.1 % M<
* il{ E +ll E E]-{ E i iE {Sx E
x V 2010 E {Si 4 +vE E +i E r
|ii *

The recovery process of global economic meltdown has started

and after a year of being downbeat, prospects for the global
economy is revised upwards from contracting by 1.1% in 2009
to growing by 3.1% in 2010. However, world economy is
expected to return to its pre-crisis level, with an anticipated
average annual growth of little more than 4% after 2010.

E E |G i E =i + E n
Sx E n n lx { VE < n Exp E
xx E { x * +i] p E x { 200910 i Sx E r n {xx V< E 8.5% E |CEx
vi E 9% E + i E r n 2009-10 8%
|CEi E M< * Ei i +ll E B Si E
li <E Vn pi r x *

In this growth process, India, being one of the emerging and

developing countries of the world, second only to China, is
most likely to play the pivotal role. IMF has already revised up
Chinas growth forecast for 2009-2010 to 9% from a July
estimate of 8.5% and Indias growth to touch 8% in 2009-2010.
But the alarming feature for Indian economy, at present is rising
inflation.

27 S 2010 E {i {i Jt i 17.7% E r
+ Oi: pi 9.89% il 2010 xh Ij
7.4% E i Ei ni E pi iV BE c
xi V V { vx Epi E Vx +{Ii *
i Ji: pi xh Ij + < + < |E
Oi: pli r <* +i: B +E E k
2011 E |l i pi E n 10-11% E U Ei
V i V E E 8.5% E Jn n E +vE *
V { |iE | b Ei *

Hike in the food inflation to 17.7% for the week ended March
27, 2010 and the overall inflation to 9.89% and inflation in
manufacturing to 7.4% in February, 2010 implies that inflation
is fast becoming a demand-driven problem. The primary
articles inflation in India has started spilling over to
manufacturing inflation and thus overall inflation is going up.
So, it is apprehended that inflation may touch 10-11% in first
quarter of FY-11, much beyond the RBIs comfort factor of 8.5%.
This may affect the market adversely.

+i:, < {li i +ll E I Sxi B xiMi

={ E +{xx E V gi < pi E xjh +
E il li E S ix xB J* < vx Ji B
i V E x { B V { n E g E G:
5.25% + 3.75% E n VE 2010-11 i E E
pE B @h xi ++ 25 +v n E r E <
6% E n* ++ r V 24 +| 2010 | <
EM |h .12,500 Ec E +iH xEn E J{BM
+ <E pi n E E Ex nn M * =i
V gi V n =zi +ll E ix +{IEi
{ g Ei Ei V n iiE r E Y u
xE M *

Hence, at this juncture, the challenge before Indian economy

is to adopt such policy measures which would strike a balance
between controlling rising inflation and maintaining growth and
stability. Keeping this in view, the Reserve Bank of India has
hiked the repo, reverse repo to 5.25% and 3.75% respectively,
while the CRR to 6% -raising the rates by 25 basis points in
the recent Annual Monetary and Credit policy for 2010-11.The
hike in CRR, which came into effect from April 24, 2010 is
expected to absorb Rs 12,500-crore excess cash from the
banking system and help lowering the rate of inflation. In
emerging markets, raising interest rates could happen sooner
than in advanced economies but still any immediate hike in
interest rates is being ruled out by the experts.

EM {o

BANKING SCENE

+tME =i{nx r E l x E x , EM Ij , vi
Ii ={M E{] Ij =SSi x E +Ei E Ei
V VxE Ij E E E @h r E lx x E {
xB * Ei E E vx x SB CE xiMi n
E |E E r @h =` E |i E Ei V +
E * i: i V E E E +{x {B+ n xx i

In the Banking sector, with the industrial production growth

likely to stay, increased capacity utilization may attract higher
investment by the corporate sector which is most likely to
support public sector banks credit growth. But, banks should
be cautious now because any hike in policy rates could affect
credit offtake, which is still low. The RBI is most likely to allow
banks to keep their BPLR at low levels. But as domestic inflation

34

{ Jx E +xi n Ei * Ei S E P pi + Vx E
Ei E |i nx >{ E + V , x {V +i
iV + il x Mi g , B x E i
V E E +i V n r + E Ei CE i iE
V n { + +vE n M *

and the global trend in commodity prices, both are upward

rising, net capital inflows picking up and input costs rising, it is
likely that RBI may start hiking interest rates by the year-end
because by then there would be more pressure on interest
rates.

pi E +z Sxi x{]x + li E l r
E xB Jx E =q 2010-11 i E pE + @h
xi xxJi { vx Epi E M :

In order to address the impending challenges of inflation and

maintaining growth with stability, the Annual Monetary and
Credit policy for 2010-11 has focused on:

E) +{x xiMi |lEi r E lx { pi

{ Epi Ex + Ii v v+ E {i Ex V
Ei { +iH n b Ei *

a) Shifting its policy priority to inflation from growth, at the

moment and do away with the capacity constraints which are
likely to put additional pressure on prices.

J) ] +ll + li E vx Ji B gi
V n E v vx{E ={ Ex*

b) taking cautious measures as regards raising interest rates

keeping in view macroeconomic and price stability.

M) SE +ll M {I E n {] { = ,
..E. E vv =q pi E 3% iE i Jx
+ ilx |G E lx i xi E +vi { M
E VBM*

c) As demand side pressures have clearly emerged in the

economy, RBIs medium-term objective is to contain the
inflation at 3% and the policy will be tuned in a calibrated
manner to support the recovery process.

-n- +v { E @h 26 S 2010 E {i {I
16.7% +li 4,64,849 Ec g, k 2010 i
u M-Jt @h r E 16% E |I{i I +vE *
VE VxE Ij E E u nB MB +O 19.5% E
r < , xV Ij E E E @h j 11.7% g +
n E E @h {] 1.5% iE i * M Jt
E @h 473819 Ec 32,49,369 Ec M* i
V E u 19 +| 2010 E V ] +lE + pE
E v {] E +x O EM |h 2009-10
@h r 2008-09 E 17.5% E ix 17% * |J Ij
l E, =tM, + HE @h @h r v +
* il{, u +H 2009 l {n Ij E @h E
v VJ i gx E n l {n Ij E @h
iV M] +< *

On a year-on-year basis, bank credit grew by 16.7% or Rs 4,64, 849

crore, in the fortnight ending March 26, 2010, which is exceeding
RBIs projected non-food credit growth target of 16% for FY2010.
While advances by public sector banks grew at 19.5%, private sector
banks grew credit by only 11.7% and the loan portfolio of foreign
banks contracted by 1.5%. Non-food bank credit grew by Rs 4,73,819
crore to Rs 32,49,369 crore. For the whole banking system, credit
grew by around 17% in 2009-10 as compared to the 17.5% growth
in 2008-09 according to the report on macroeconomic and monetary
developments for 2009-10 released by the RBI on 19th April, 2010.
There was an improvement in credit growth to major sectors such
as agriculture, industry, services and personal loans. However, after
RBI has increased the risk weights on loans to the real estate sector
in October, 2009, credit to the real estate has decelerated sharply.

V . 83,630.57 Ec gE .44,86,573.66
Ec M<* E |ii B +x +xni |ii
E E x 26 S 2010 E {i {I {
.4253.29 Ec P] E .13,82,683.58 Ec M*

Deposits also surged by Rs 83,630.57 crore to Rs 44,86,573.66

crore. Investments by banks in government securities and other
approved securities dipped marginally by Rs 4,253.29 crore
to Rs 13,82,683.58 crore in the fortnight ending March 26,2010.

k 2010 E @h 20% +vE r E x *

V r 20-22% x E x *

Bank credit is expected to grow at over 20% in FY11. Deposit

growth is also expected at around 20-22%.

+i + ni+ E JJ Ex E E I BE i{h
Sxi * x gi pi E Ex E +{x |
ui i E pE xi ++ 75 +v n E
r E < 5.0% 5.75% E + E pE + @h
xi < 25 +v n E r E* ++ E { E M<
r EM |h .36000 Ec E +iH ii E
J{ M + ++ n r 24 +| 2010 M <

Maintaining assets and liabilities are an important challenge

ahead of the Banks. RBI, in its bid to tame rising inflation, has
hiked the CRR by 75 basis points from 5.0% to 5.75%, in two
phases in the second quarter review of the Monetary Policy
and hiked CRR by 25 bps in the annual monetary and credit
policy. The former increase in CRR has sucked out Rs. 36,000
crore of excess liquidity from the system and the second hike
in CRR, which has come into effect from April 24, 2010 is
expected to absorb Rs 12,500-crore excess cash from the

35

system. Even after the CRR hike, liquidity in the system would
be more than adequate to facilitate government borrowing as
well as add to loan growth. As per the Union Budget 2010-11,
an additional sum of Rs.16,500 crore will be infused to the
PSBs for the year 2010-11. This will ensure the business growth
of banks as well as availability of growth capital for the
economy.

V EM |h .12500 Ec E +iH xEn E J{

VBM* ++ r E n EM |h ii E =v
E v xx + @h r M E B {{i +vE M *
Exp V] 2010-11 E +x 2010-11 i VxE Ij E
E E .16500 E +iH E< VBM* < E E
r E l-l +ll E B r {V E ={vi
xSi M*

<n E E Ex{nx / PERFORMANCE OF ALLAHABAD BANK

{SxMi {h
J xnb E E Ex{nx xxEi h
|ii :

OPERATING RESULTS
Banks performance in key business parameters is presented
below.

(h. Ec )

(Rs. in crores)

S 08
xnb/Parameter
x / Net Profit
{SxMi / Operating Profit

]bM E UcE {Sx

Operating Profit Ex. Trading Profit

|vx B +EEiB

Provisions & Contingencies

E +/Total Income

09

(%)

10

(%)

Mar08
974.74
1479.51

Mar09
768.60
1901.15

Growth (%)
-21.15
28.50

Mar10
1206.33
2548.55

Growth (%)
56.95
34.05

1008.48

1328.45

31.73

1972.00

48.44

504.77
7135.97

1132.55
8506.65

124.37
19.21

1342.22
9885.10

18.51
16.20

5656.46
1672.34
71616.38
50312.16
121928.54
23722.28

6605.50
2158.67
84971.79
59443.40
144415.19
30081.35

16.78
29.08
18.65
18.15
18.44
26.81

7336.55
2650.48
106055.75
72437.31
178493.06
38680.43

11.07
22.78
24.81
21.86
23.60
28.59

E (|vx E UcE)
Total Expenditure (Excl. Prov.)

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

CAPITAL AND RESERVES

{V B +Ii xv
lli 31.03.2010 E E E |nk {V . 446.70 Ec
* E +i +Ii xv + +v lli 31.03.2009
E . 5405.25 Ec fE . 6306.25 Ec MB*

The paid-up capital of the Bank remained at Rs.446.70 crores

as on 31.3.2010. The reserves & surplus went up to Rs.6306.25
crores as at end of this year from Rs.5405.25 crores as on
31.03.2009.

|ni

PROFITABILITY

{SxMi

Operating Profit

E E {SxMi Mi E .1901.15 Ec 34.05%

fE 2009-10 E nx . 2548.55 Ec M* 200910 E nx {Sx r 28.50% l*

The Operating Profit of the Bank grew by 34.05% to Rs.2548.55

crores during 2009-10 from Rs.1901.15 crores during the
preceding year. During 2008-09, the growth in operating profit
was to the tune of 28.50%.

Net Profit

E E x Mi E .768.60 Ec 56.95%
fE 2009-10 E nx .1206.33 Ec M* E E
=SSi |ni E +O V + E vi j, vi
E +vi +, E Mi E V E c + + lE
V E E Ex E Eh xv E Mi E +
+{Ji Ji i E n V Ei *

The net profit of the Bank grew by 56.95% to Rs.1206.33 crores

during 2009-10 from Rs.768.60 crores during the preceding
year. Higher profitability of the Bank may be attributed to
increased volume of interest income from advances, enhanced
fee-based income, reduction in cost of fund due to larger share
of low cost deposits and refraining from bulk deposits and better
recovery in written off accounts.

36

Dividend
ttCtkN
cfU fuU rl=uNfU bkzt lu 2009-10 fuU =tihtl RrJxe fuU 55% The Board of Directors of the Bank has recommended a
fUe =h mu ttCtkN fUe ylwNkmt fUe ni> +li 10. |iE E |i dividend @ 55% i.e. Rs.5.50 per equity share of Rs.10 each.
{ . 5.50 E *
EEk ]E BCSV ]b (B<) <C] E Voluntary Delisting of Equity Share from The Calcutta Stock
Exchange Limited (CSE)
SUE +SEh
{U E x `E vE u EB MB +xnx E In terms of approval granted by shareholders in the last Annual
+x, E E <C] nxE 09.03.2010 EEk General Meeting, the equity share of the Bank got delisted
from the CSE with effect from 09.03.2010.
]E BCSV +SEi +*
k {h / FINANCIALS
E E i{h +x{i xS nB MB / Important ratios of the Bank are depicted below;

xnb / Parameters
{V {{ii +x{i / Capital Adequacy Ratio (%)
V /Of which
] I (%) / Tier I (%)

31.3.08

31.3.09

31.3.10

11.99

13.11

13.62

7.71

8.01

8.12

4.28

5.10

5.50

2.26

2.54

2.54

6.66

6.67

5.99

9.26

9.62

8.68

6.67

6.62

5.97

Average Yield on Advances (%)

10.76

10.88

10.57

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

|i (.) / Book Value per Share (Rs.)
+i { |i (%) / Return on Assets (%)

21.82

17.21

27.01

116.88

131.00

151.17

1.32

0.90

1.16

24.56

16.49

22.21

II (%) / Tier II (%)

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

|vx EV +x{i (%)

Provision Coverage Ratio (%)

75.62

76.45

78.95

x Bx{B / Net NPAs (%)

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

0.80

0.72

0.66

4.85

3.76

5.76

Productivity per Employee (Rs. in lacs)

604

706

845

E B JB
E x 2009-10 E nx E x 27 x< JB Ftut V
lli 31.03.2010 E J+ E E J 2287 M<
Vx 976 Oh, 411 +v-, 472 B 427 xM
JB + BE n J * 76 Ei J+ 7 +tME
k JB, 5 +xi] JB, 1 +tME k +i]
J, 1 Bx++< J, 2 Ei HMi EM JB, 18
BB< k JB, 7 JB, 1 BB , 1 Ei
Si E J, 2 { k JB, 1 Ei hVE E
k J, 4 E k JB, 2 E E JB, 3 Ij

OFFICES & BRANCHES

The Bank opened 27 new branches during 2009-10, taking
total branches to 2287 as on 31.3.2010, with 976 rural, 411
semi-urban, 472 urban, 427 metropolitan branches and 1
foreign branch. The specialized branches, numbering 76,
including 7 Industrial Finance Branches, 5 International
Branches, 1 Industrial Finance-cum-International Branch, 1
NRI Branch, 2 Specialized Personal Banking Branches, 18
SME Finance Branches, 7 Recovery Branches, 1 CMS Hub, 1
Specialized Savings Bank Branch, 2 Trading Finance
Branches, 1 Specialized Commercial Agricultural Finance
Branch, 4 Agriculture Finance Branches, 2 Agriculture

37

|M Exp, 1 n x ]V |vx J + 20
JB * lli 31.03.2010 E i {] E
J 66 l* E x EM |vx i n + b E{ B M{ E M`x E* <E +iH BE b
E E Z +M +ii E M*

Development Branch, 3 Regional Processing Centres, 1 Forexcum-Treasury Management Branch and 20 Service Branches.
Extension Counters numbered 66 as on 31.3.2010. The Bank
constituted two more zonal offices- Berhampore & Bhagalpur
for effective management. Moreover, one of the zonal offices
was shifted from Jhansi to Agra.

V Oh
E E E V lli 31.03.2010 E 24.81% E
=Jx r ni B .106056 Ec M<* E Mi
V lli 31.03.2010 E 24.45% gE .36587
Ec M< V BE { E 35.08% E ix E V
E 34.99% * < +v E nx V E Mi 6.62%
P]E 5.97% M<*

DEPOSIT MOBILISATION

k j E nxnx{ 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
(17.08.09 31.12.09) E nx 10 x +vE xB Si
Ji J MB + Ji . 424.86 Ec E V
Oi <* S Ji V +x (01.01.2010 31.01.2010)
E nx 20393 Ji . 322.49 Ec E V Oi
E M<*

In line with the directions from Ministry of Finance, the Bank

emphasized on low cost deposits mobilization and observed
saving deposits & current deposits mobilization campaign
during the year. During the SB mobilisation campaign (from
17.08.09-31.12.09), over 10 million new saving accounts were
opened and saving deposit mobilized to the tune of Rs.424.86
crores. During the Current Deposit Mobilisation campaign (from
01.01.10-31.03.10), Current deposits of Rs.322.49 crores were
mobilized in 20,393 accounts.

@h +xVx

CREDIT DEPLOYMENT

E E E +O lli 31.03.2010 E 21.86% gE

.72437 Ec M* @h - V +x{i (E) Mi E
70.93% E {I 69.27% * < +v E nx E lu |h
+{x V + 2.00% g E 2.15% E n* E E
SE =v n ({B+) 12.00% * x V
{o E +x{ +O { + 2008-09 E 10.88% E {I
2009-10 E nx 10.57% *

Total advances of the Bank went up by 21.86% to Rs.72,437

crores as on 31.3.2010. Credit-deposit ratio (gross) stood at
68.93% as against 70.93% last year. The Bank increase its
market shares in the system to 2.15% from 2.00% during the
period. The Benchmark Prime Lending Rate (BPLR) of the
Bank was at 12.00%. Yield on advances stood at 10.57 %
during 2009-10 as against 10.88% during 2008-09 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 { nx V J* |J
Ij +x E l-l xxJi :

The Bank continued its emphatic thrust on recovery of nonperforming assets. The thrust areas included, among others;

Total deposits of the Bank showed a significant growth of

24.81% to Rs.106056 crores as on 31.3.2010. Low cost
deposits grew by 24.45 % to Rs.36587 crores as on 31.3.2010,
constituting 34.82 % of aggregate deposits as compared to
35.08% a year ago. Cost of deposits decreased to 5.97 %
from 6.62% during the period.

Px xMx B +x xjE ={ u x Bx{B {x{x

Ex*
+vx + +x vE ={ E E
Bx{B E x*
+{Ji @h Ji E v b-EMx<Vb V
u + gk*
@h VJ |vx E Vi Ex*
xB Bx{B Ji B {xM` x/b+ E +vx Ji E =zx
{ nx*
=vEi+ E z M l- P B i Ex, E
u |Vi @h, E @h <in i Zi Vx*

Arrest of Fresh addition of NPAs by ensuring close

monitoring and other control measures,

Reduction in NPA through invocation of SARFAESI Act

and application of other legal measures for logical
conclusion,

Increase in income from derecognised interest through

recovery in written-off debt accounts,

Strengthening credit risk management,

Thrust on upgradation of fresh NPAs A/cs and accounts

under restructuring/CDR,

P B C] @h (Zi / B E
+ni E v @h E +{Jx i) E *

Settlement scheme for different segment of borrowers like;

small & marginal farmers, Govt. sponsored loans,
agricultural credit etc,
Recovery of small & cluster loans (including written off
debts through settlement camps/recovery camps and
Lokadalats),

38

E E E +x{V +i 31.03.2009 E lli

.1078.25 Ec E {I 31.03.2010 E gE .1221.80
Ec M< VE < +v E nx x +x{V +i
.422.11 Ec gE .470.15 Ec M<* E +O
E ix E Bx{B E |ii 1.81% P]E 1.69%
M* x +O E ix x Bx{B E +x{i 0.72%
P]E 0.66% M* < +v E nx E E |vx EV
+x{i 76.45% E ix 78.95% VE {V +x{i
1.72% g E 1.98% M*

Gross Non-performing assets of the Bank increased to

Rs.1221.80 crores as on 31.3.2010 from Rs.1078.25 crores
as on 31.3.2009 while net non-performing assets increased
to Rs.470.15 crores from Rs.422.11 crores during the period.
The gross NPAs as percentage to gross advances declined to
1.69% from 1.81%. The ratio of net NPAs to net advances
reduced to 0.66% from 0.72%. The provision coverage ratio
of the Bank stood at 78.95% as compared to 76.45% while
the slippage ratio increased to 1.98% from 1.72% during the
period.

+i |vx JB:

Asset Recovery Management Branches:

E x +xni xi E +x +{x {i J+ E
+i |vx J+(B+B) E { {xM` x E*
x< xvi xi E +x ix Vn J+ EEi,
< + x< n x E | E n * Sl J
Jx> J M< * Sz<, <n + {]x B+B
JB Q J VBM* B+B JB M-n nJ Ji
i .10.00 J + +vE E Bx{B { E<
EM*

The Bank has reconstituted the erstwhile Recovery Branches

as Asset Recovery Management Branches (ARMBs) in terms
of policy approved. According to the newly laid down policy,
three of the existing Recovery Branch Kolkata, Mumbai & New
Delhi have started functioning. The fourth one is opened
recently at Lucknow. The ARMBs at Chennai, Allahabad, &
Patna are to be opened recently. These ARMBs are to deal
with in all NPA cases of Rs 10.00 lacs & above including nonsuit filed accounts.

VE EM:

SOCIAL BANKING:

|lEi Ij B EV Ij E +iMi E E Ex{nx

xxx :
|lEi Ij @h 31.03.2009 E lli .20435
Ec g E 31.03.2010 E lli -n- +v
{ . 3844 Ec(18.81%) E x{I r nV Ei B
.24279 Ec M * E x S 2010 E lli
41.29% E |{i E BBx |I@ E ] I(40%)
E { E *
E @h E 31.03.2009 E lli .9568 Ec
g E 31.03.2010 E lli -n- +v { .1999
Ec (20.89%) E x{I r nV Ei B .11567
Ec M * E x S 2010 E lli 18.68% E
|{i E BBx E @h E ] I(18.00%) E
{ E *
ix 2009-10 E n x xB E @h E ih .3615
Ec {S M*

Banks performance under Priority Sectors and Weaker

Sections is presented below:

Priority Sector Credit grew from Rs.20435 Crore as on

31.03.2009 to Rs.24279 Crore as on 31.03.2010,
registering an absolute YOY growth of Rs.3844 Crore
(18.81 %). Bank has exceeded the National Goal (40.00%)
of PSC to ANBC by achieving 41.29% as on Mar10.

Agriculture Credit outstanding increased from Rs.9568

Crore as on March 2009 to Rs.11567 Crore as on March
2010, registering an absolute YOY growth of Rs.1999
Crore (20.90%). Bank has exceeded the National Goal
(18.00%) of Agriculture to ANBC by achieving 18.68%
as on Mar10.

Fresh Credit Disbursal in Agriculture Loans reached

Rs.3615 Crore during the current year 2009-2010.

Ex Gb] Eb (E)
2009-10 E nx E x 2.23 J Ex Gb] Eb V EB
V 1335.97 Ec E @h l* lli
31.03.2010 E E .4847.62 Ec E @h E l
E E Si J 9.12 J l*

Kisan Credit Cards ( KCC ) :

Ex H Vx(EB<)

Ex H Vx E +iMi E x 2009-10 E nx 1143

Ex Gb] Eb vE E .26.29 Ec E @h v |nx
E* 31.03.2010 E lli Vx E +iMi k{i Ex
Gb] Eb vE E S J 147935 l V .1962.38
Ec E *

The Bank extended credit facility to farmers under KSY to 1143

Kisan Credit Card holders involving a credit limit of Rs. 26.29
Crores during 2009-10. Cumulative number of Kisan Credit
card holders financed under KSY scheme was 147935
involving Rs. 1962.38 Crores as on 31.03.2010.

The Bank issued 2.23 lacs Kisan Credit Cards involving a

credit amount of Rs. 1335.97 crores during 2009-10. The
cumulative KCC numbered 9.12.lacs with a credit line of
Rs4847.62crores as on 31.03.2010.

39

Kisan Shakti Yojana ( KSY) :

h 1 : |lEi Ij @h / Table 1: Priority Sector Credit

Ij/VxB

/ Sector/Schemes

/ March 2009

/ March 2010

Ji E .
(J )

(.Ec )

Ji E .
(J )

(. Ec )

Number of
Accounts
(in lacs)

Amount
(Rs. crores)

Number of
Accounts
(in lacs)

Amount
(Rs. crores)

1. |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
<G =t / Micro Enterprises
+x |. I. @ / Other PSC
2. EV M / Weaker Section.

15.02

20435

18.16

24279

10.43
10.21
0.22
1.80

9568
7306
2262
4593

12.76
12.47
0.29
3.52

11567
8340
3227
8188

1.65
2.85
9.25

2768
6275
5010

3.01
1.88
10.75

5091
4524
6150

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

i{h +x{i /

] I

Important Ratios

National Goal

/ March

/ March

2009

2010

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

40

41.10

41.29

18

19.20

18.68

E <G B P =t <G =t / Micro Enterprises to Total Micro & Small Entp.

mbtgturs; x E @h EV M E @h/Weaker Section Credit to Net Bank Credit

60

60.26

62.25

10

10.07

10.46

BBB< Ij E k{h

<G B P =t(BBB<) Ij E @h S 2009 E

lli .4593 Ec g E S 2010 E lli
.8188 Ec M V -n- +v { .3595
Ec(78.27%) E x{I r nV E * S 2010 E
lli E <G + P =t <G =t Ij
62.25% E ={v Ei B ] I (60%) E
{ E M* <G, P B v =t (BBB<) Ij
E +O lli 31.03.2010 E .9770.71 Ec
MB, V 2009-10 E 77.39% E r ni *
EB MB xB =i{n/VxB
E x E +vi =tM E vx + E =i{n E ]bM
E lx nx i |lEi Ij @h E +iMi n x< VxB
+ E *

MSME Sector Financing:

Credit to Micro and Small Enterprises (MSE) grew from
Rs. 4593 Crore as on March 2009 to Rs.8188 Crore as
on March 2010, registering an absolute YOY growth of
Rs.3595 Crore (78.27%). Share of Micro Enterprises to
total Micro & Small Enterprises has exceeded the National Goal (60%) by achieving 62.25% as on Mar10.
Credit to Micro, Small & Medium Enterprises (MSME)
increased to Rs.9770.71crores as on 31.03.2010, showing a growth of 77.39% during 2009-10.

New Products / Schemes launched:

The Bank launched two new schemes under Priority Sector Credit to promote agro-based industries and support
trading of farm produce.

(E)< M =t E @h Vi E { Ex E B <
M x] E k{h E Vx*

(a) Scheme for Financing to Rice Shelling Units to meet

the credit requirement of Rice Shelling Entrepreneurs.

(J)Ex E +M @h nx i +gi E @h Vi E {
Ex E B +gi(Ex BV]) i +E Cb
E

(b) Allbank Liquid Scheme for Artiyas (Commission

Agents) to meet the credit requirement of Artiyas for on
lending to Farmers.

V i E i (BB)
E x BB VE E { ZJb V E +lE =ilx

State Level Bankers Committee (SLBC)

The Bank as SLBC convenor, continued to thrust in co-

40

i EM | E x { nx V J* E |lEi
E +v { E i + +{ E Ij E JB Jx +
<E Vx xx i V Ei E E M`x BE +Oh
E x * E x ZJb E u Pi J i
E {EV E Exx i +E En =`B * i
E/i V E E nxn E +iMi BB VE
E { E x V {Si +x E E M 2000
+vE VxJ M EM vB ={v Ex i
b{ i E * E - { BB E ` E
+Vi Ei + V BB x V E E i
EM { { SS + I Ex BE og S E {
Jn E i E *

ordinating banking efforts for economic upliftment of State of

Jharkhand. The Bank has been playing a lead role in organizing banks operating in the state to plan and open Bank
branches in unbanked and underbanked areas on priority
basis. Bank took necessary steps for implementation of special package for Drought Relief announced by the Government of Jharkhand. Under the directions of Government of
India/Reserve Bank of India, our Bank, as SLBC convenor, in
association with other banks operating in the state, drew
roadmap for providing banking facilities to all villages having
population over 2000. The Bank conducted meetings of SLBC
timely and the SLBC in the state has proved to be a strong
forum to discuss and review banking initiatives for the development of the state.

+Oh E Vx
=k |n 13, ZJb 2 il v |n B {S M
1-1 V i 17 V +Oh E E ni E xi B
V @h Vx 2009-10 E +iMi E x .1511.58 Ec
E @h ii E V I E 98.24% ={v *

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.1511.58 crores under District Credit Plan 2009-10 achieving 98.24% of the target.

Ij Oh E

E x |iE |VE E i BE V BE ++ E
+vh E +{x * ={H xi E +xh =k |n
n |Vi ++ E BE c +E og +
E { i E M VE x <n {
Oh E, VE =k |n E 11 V 480 JB * <
|E E u |Vi Ij Oh E E J n
M< BE =k |n + BE v |n * <x nx ++
x +{x Ex{nx v V J + 2008-09 E nx
. 47.66 Ec E E E {I 2009-10 E n x .77.9
Ec E E +Vi E* Si 2008-09 E .386.62
Ec E {I 2009-10 .456.04 Ec *

Government of India adopted One State One RRB for each

sponsor Bank. In pursuance to the above policy our two Sponsored RRBs in Uttar Pradesh were amalgamated into one large
size and strong RRB, Allahabad UP Gramin Bank, having
480 branches spread over 11 districts in Uttar Pradesh.
Thus the number of Regional Rural Banks sponsored by our
Bank now remain two, one in Uttar Pradesh and another in
Madhya Pradesh. These two RRBs continued to improve
their performance with an aggregate profit of Rs.77.9 Crores
during 2009-10 as against Rs. 47.66 Crores during 2008-09.
The accumulated profit stood at. Rs 456.04 Crores in 200910 as against Rs.386.62 Crores during 2008-09.

E @h Vx E +iMi E u |Vi Ij Oh E x
2008-09 E .1033.02 Ec E {I 2009-10 E nx
.1308.67 Ec E @h ii E V 101.44% E
={v *
E @h B @h i Vx, 2008(Bbbb+)

The Bank-sponsored RRBs disbursed Rs.1308.67 crores during 2009-10 under the Annual Credit Plan as against
Rs.1033.02 Crores in 2008-09 achieving 101.44%.

i E u 23.05.2008 E E @h B @h i
Vx, 2008 xE Vx M E M< l* Vx 5 BEc iE
E Vi P B i Ex E 31.12.2007 E
lli E + 29.02.2008 iE +nk E @h U]
|nx E M< l* {S BEc +vE Vi Ex E
31.12.2007 E lli E + 29.02.2008 iE +nk
@h 25% iE E U] < i { |nx E M< l E
E E 75% 30.06.2010 iE +n E n* @h i
E E J{Ii n 1041.80 Ec V i
V E u +iE .673.90 Ec E |i{i E M< *
@h i i n Vx 2010 E n |ii E VBM*

A scheme in the name of Agriculture Debt Waiver & Debt Relief Scheme 2008 was launched by the Government of India
on 23.05.2008. The scheme provided waiver of agriculture
loans of small and marginal farmers having land holding upto
5 acres for overdue loan amount as on 31.12.2007 and remaining unpaid upto 29.02.2008. The scheme also provided
relief for farmers having land more than 5 acres upto an extent of 25% of overdue loan amount as on 31.12.2007 and
remaining unpaid upto 29.02.2008 on the condition that eligible farmers pay 75% of the overdue amount by 30.06.2010.
The audited claim of the Bank for debt waiver is
Rs.1041.80Crores, of which Rs.673.90 Crores has so far
been reimbursed by the Reserve Bank of India. The claim
of debt relief will be submitted after June2010.

Lead Bank Scheme:

Regional Rural Banks:

Agriculture Debt Waiver & Debt Relief Scheme,

2008(ADWDR)

41

 Ex E .3 J iE E +{v =i{nx @h 7% |..

E n |nx Ex*
i E .3 J iE E +{v =i{nx @h E v
VxE Ij E E E 2% V +xnx < i { ={v
E E B +{EE @h 7% |.. E n |nx E
Vi * <E +iH E =x Ex E +iH V
+xnx |nx E V +{v =i{nx @h E +nM B
@h E ih E BE E +n E n* E < Vx E
Exi E * 2009-10 E nx E x .22.36 Ec
E V +xnx E n E + < |{i E*

Providing Short Term Production Credit to Farmers

upto Rs.3lacs. at 7% p.a. interest.
Government of India is providing interest subvention of 2% to
Public Sector Banks in respect of short term production credit
upto Rs.3lacs provided to farmers on the condition that such
short term credit is provided at 7% p.a. at ground level. In
addition Govt. is providing additional interest subvention of
those prompt paying farmers who pay their short term production credit within one year of disbursement of such loans. The
Bank is implementing the scheme. During 2009-10 Bank has
claimed and availed of interest subvention of Rs.22.36
Crores.

E{] VE =kni

Corporate Social Responsibility

E x BE Vn E{] xME E { V E ii
E E B xxEi En =`B , V xvE + {h
E |i <E Si E |ni Ei *
k x
E x =k |n + ZJb V E x +Oh V 100% k
x E * E x Vx E{b] E v ]E ]
Eb x E +{xi B +<] vH k x E
Exx E VB k k x i En =`B * i
V E E nxn E +x E x 2000 +vE VxJ
M k vB Ex i k x
Vx |ii E * E x 2009-10 E nx 1000 Ex
O E EM vB |nx Ex E xh *

The Bank, as a responsible corporate citizen, has initiated the

following measures towards sustainable development of the
society reflecting its concern for human rights and environment.

Financial Inclusion:

Bank has achieved 100% Financial Inclusion in Nine Lead

Districts of the Bank in the State of Uttar Pradesh and
Jharkhand. The Bank has taken steps for achieving greater
financial inclusion through implementation of ICT Enabled Financial Inclusion by adopting Biometric Smart Card solution
through Business Correspondents. As per directions of Reserve Bank of India, our Bank has submitted Financial Inclusion Plan for providing Banking facilities to all Villages
having a population over 2000. The Bank has decided to
bring 1000 unbanked villages in the fold of banking services
during 2009-10.

k Ii B @h { Exp

Financial Literacy and Credit Counselling Centres

k xnx E V]i+ E qxV E x i vx B

E H E BE + k I |nx Ex il n
+ @h { nx E B EEi + n (=|.) vx
E x k Ii B @h { Exp J *

In order to provide financial education on one hand and to

offer credit counselling on the other to people having limited
resources and skills to appreciate the complexities of financial dealings, the Bank has opened Financial Literacy and
Credit Counselling Centres christened Samadhan at Kolkata
and Banda (UP).

Exp <n E Oh E x E iivx ij

{ E Ei *

The Centres act independently on its own under the auspices

of Allahabad Bank Rural Development Trust.

Exp M E M`x E { l{i EB MB V E

B M , VxE <n E E< k xnx x ,
k |vx E v { E +Ei {cx {
Ei * B {ni+ u H& +v { |nx E
Vi *

The Centers are nonprofit organizations established with a

view to rendering assistance in the form of advice to all those
who are in need of advice on financial management even
though they do not have any financial dealings with Allahabad
Bank. The services offered by the counsellors are on one to
one basis.

EE/VM + i |Ih vB :
E x E + =ti Ii v i Ex, VM
+, BxV+, BBSV +n E |Ih |nx Ex E B <
n + Oh VM |Ih lx (+B<]+<)
l{i EB * (BE n V (=.|.) + n nE V
(ZJb) ) < |E ix E E xxJi Exp U
+B<]+< :

Training Facilities to Farmers / Unemployed Youths:

The Bank has established two more Rural Self Employment

Training Institutes (RSETI) this year for imparting training to
Farmers, unemployed youths, NGOs, SHGs etc. for improvement of skills and entrepreneurship ability. Thus the Bank has
at present six RSETIs in the following centres :

42

1. , =.|.,
2. VM, ZJb,
3. {, {..,
4. n, {..,
5. nE, ZJb,
6. n, =.|.
|Ih E |Vx I xxEi :
P i EiE Ex x Vn
v B c Ex
{ {g E =t
l{i =t

1. Rae Bareilly, U.P.

2. Hazaribagh, Jharkhand

3. Bolpur, W.B.

4. Debra, W.B.

5. Dumka, Jharkhand

6. Banda(U. P.)

The target groups for training interventions are:

Small/Marginal/Tenant Farmers/Landless Labourers
Medium & Large Farmers
First Generation Entrepreneurs
Established Entrepreneurs

31.03.2010 iE 636 EG Si E M Vx 17077

EE/V M E E |Ih n M + 7376 |Ihl
E 49.29 Ec E @h |nx E M

Up to 31.03.2010, 636 programmes were conducted and extended trainings to 17077 farmers / unemployed youths , out
of which 7376 trainees were credit linked involving an amount
of Rs.49.29 Crores.

x {+ E Eh
E{] VE ni E BE M E { E x x
{ E x {+ E Mn x E { E, V x {+ E |i
<E | E |ni Ei * E x xxEi {+ E +|
2010 BE E B Mn *
1. Px - 'x'
2. Si - '+Mx'
3. U - 'E'

Welfare of Wild Animal

As a part of its CSR activities, the Bank has initiated adoption

of wild animals at Van Vihar Bhopal showing its love for wild
animals. The Bank has adopted following animals for one year
commencing from 1st April, 2010.
1.

Tigress BASANI

2.

Leopard AGNI

3.

Sloth Bear KAMAL

] @h

Retail Credit

E x M E HE, ={H + E Vi E
{ Ex E B z @h Vx+ E +iMi @h r {
n * n E E 126 ] EM ]E (+) *
{x: E x og {SxMi nxn + nI VxH E l
] @h E |G + ih E + xx i 27
Exp ] EM ]E J *

The Bank has emphasized to augment the loans under various retail loan schemes to cater to the personal, consumer &
business needs of all sections of the society. The Bank has
126 Retail Banking Botiques (RRBs) all over the country. Again
the Bank has opened 27 Central Retail Banking Botiques
(CRBBs) to further the easy processing & disbursement of the
of Retail loans with strong operational guidelines & efficient
manpower.

{U k E .1795.60 Ec E {I E x 75.37%
E r nV Ei B 2009-10 E nx .3148.97 Ec
E @h ii E * S 2009 E lli .8400.59
Ec E E E {I S 2010 E @h .10082.14
Ec * E nx 20.02% E r ni * .72437
Ec E E @h .10082.14 Ec E ] @h +
13.92% *
] @h E ih xxx :

Disbursement during the year 2009-10 was Rs. 3148.97 Crore

as against Rs.1795.60 Crore during the last financial year registering a growth of 75.37%. Total outstanding as on Mar2010 stood at Rs. 10082.14 Crore as against Rs. 8400.59
Crore as on Mar2009. This shows an increase of 20.02%
during the year. The share of Retail credit having outstanding
of Rs10082.14 Crore is 13.92% to Gross credit which is 72437
Crore.

Vx /Scheme

Distribution of Retail Loans are as follows:

E / Outstanding

M @h / HOUSING LOAN
{k / PROPERTY
E / RENT
@h / SARAL LOAN
I @h / EDUCATION
+ E ]b / ALL BK TRADE
E @h / CAR LOAN
+x / Other
E /Total

3139.37

43

E E

% of Outstanding
31.14%

1590.14

15.77%

1228.02
1218.37

12.18%
12.08%

825.72

8.19%

638.07

6.33%

439.34

4.36%

1003.11

9.95%

10082.14

100.00%

E +vi +

Fee Based Income

E x ii {I =i{n + +x E +vi Miv E

vx { n* 2009-10 E nx ]{{ E
+ Mi E .12.56 Ec 39.88 % gE .17.57
Ec M<*

The Bank has put a thrust towards promotion of third party

products and other fee based activities. The income from TPP
business grew by 39.88% to reach at Rs.17.57 crores during
2009-10 from Rs.12.56 crores last year.

]{{ E Vx + vh Ij E +iMi E
x B+<+< + x { < E{x .
(BV+<B) E l ]<+{ E * S+ b
E +iMi E E n E {S +Oh +i |vx E{x +li:
]+<, |{ {Bx, E]E xp, Ex ]{]x +
S+ b E l v ]<+{ iE +{x OE,
V +{x +v xv E S+ b Mx Si , E z
|E E =i{n ={v E V fuUk* B <O] x E
={i + xB B{Ex }] (cash@will) E M x
xEn |vx + (BB) E +iMi xB + x +B
+ E E Vx E z |E E xB BB =i{n E
E E { =` VB* BB E +iMi + gx E
=q Mix =i{n { vx Epi E V bbB
b<M bbb/ <]] ] + bC] b]/bC] Gb]
(Ji B +vn +vi) * ix E E U b{ +
EU i{h lx { <xE i Ex E |G * E x
+E Mb E +iMi h CE E Jn G E +
2009-10 E nx 274.36 E.O. E E 36760 h
CE E G E il .3.02 Ec E + +Vi E *

Under Life Insurance and General Insurance segment of TPP

business, Bank is having respective tie up with LICI and
Universal Sompo General Insurance Company Ltd. (USGICL).
Under Mutual Fund business, the Bank is having Tie up
arrangements with countrys five leading Asset Management
Companies viz. UTI, Principal PNB, Kotak Mahindra, Franklin
Templeton & Reliance Mutual Fund for Providing wide range
of products to its customers who intend to park their surplus
fund in MFs. Under Cash Management Services (CMS), new
avenues have emerged post migration to CBS and introduction
of new Application Software (cash@will), the Bank has plans
to fully exploit the situation with varied new CMS products. In
order to augment income under CMS, Bank is focusing on
Payment Products like DDF Drawing Dividend/ Interest Warrant
and Direct Debit/ Direct Credit (Instrument and mandate
based). Currently Bank is having six DPs and is in the process
of expanding it at few more strategic locations. The Bank has
launched retail selling of Gold Coins under AllBank Gold and
sold as many as 36760 Gold Coins weighing 274.36 Kgs &
booked an income of Rs.3.02 crore during 2009-10.

x
nxE 31.03.2010 E lli E E E x . 38680
Ec l VE nxE 31.03.2009 E lli . 30081
Ec l* x { + 2008-09 E nx 7.57% P]E
V |k E +x{ 2009-10 E nx 6.83% M<*

INVESTMENTS

VJ |vx

RISK MANAGEMENT

E x -** xnb E Exi E + 2009-10

i {V {{ii +x{i (+B+) E Mhx < v
E xvh E +x E M< * ... E xnx{, E x
@h VJ E ii VJ E Mhx E B xE o]Eh
|h, {Sx VJ i E <bE] B|S + V
VJ E B xE o]Eh - +v +vi o]Eh E
+{x * =tM k {{] E +x{ E x BEEi +
{E { @h, V + {Sx VJ E VJ EE
E EM {Sx, ={ + |vx E B BE {E VJ
|vx {J i E * E x {E i VJ |vx
i Si VJ |vx Sx Ei E * <E
+iH, -** E +iMi Bb B|S E i i E
i J+ + E E Ei B |tME +vi
B+<B |h E Exi Ex E |G *
-** xE E +xiMi |E]Eh +xv E { +M
nB MB ( {`. 54 - 81)
OE
b E OE i E OE v E Expn
* i W E u M`i E + v |G B
Ex{nx J{I i ({{B{B) E Z E Exx

The Bank has implemented BASEL II norms and the calculation

of Capital Adequacy Ratio (CRAR) for the year 2009-10 has
been done as per the RBI prescription in this regard. In line
with the RBI direction, the Bank has adopted Standardised
Approach methodology for calculation of Risk weight under
Credit Risk, Basic Indicator Approach for Operational risk and
Standardised Approach-duration based approach for market
risk. In line with the best practice in Industry, the Bank has set
up a Comprehensive Risk Management Framework to
effectively identify, measure and manage risk elements of
Credit, Market and Operational Risks in an integrated and
comprehensive manner. The Bank has evolved suitable Risk
Management architecture comprising a Board Level Risk
Management Committee. Further, towards preparedness for
advance approach under BASEL II, the Bank is in the
implementation process of a technology-based MIS system
covering all the branches and offices.
Disclosures under BASEL - II norms is provided in a separate
Annexure (Pg. No.54-81).

Gross investments of the Bank were at Rs.38680 crores as on

31.3.2010 as against Rs.30081 crores as on 31.3.2009. The
yield on investments declined to 6.83% during 2009-10 from
7.57% during 2008-09, in line with the market trend.

CUSTOMER SERVICE
The Banks Customer Service Committee of the Board is
pivoted on the improvement in customer service. The
suggestions of the Committee on Procedures and Performance
Audit on Public Services (CPPAPS), constituted by Reserve

44

E E u =SS |lEi n M< * J i { +Vi

OE J{I E |E E +xii, n ,E
{vx i iiE vx ni * OE v E
xnE b E OE i E i +v { +Mi
E Vi * OE { l i E ix E |i`i
i E M-E{E n E { Ei B {xM`i
E M * i E ` E i +v { +Vi i *
Ei H { E +n li xx E | + =
Ex E B E =iE] OE { ni * il{,
V E Ei |{i i i =xE xh E B iiE
={S ={ EB Vi * Ei E =xE { + Mi
E +v { B h u MEi E Vi + Ei
E h i xvi E +n =E xh xSi
E Vi * <E +iH Ei xh + OE
v i OE v l i E Z E +x En
=`B Vi *

Bank of India, are accorded top priority for implementation in

the Bank. Customer Service Audit, conducted at the branch
level, receives immediate attention for rectification of
irregularities, if any. The improvement in customer service is
appraised to the Customer Service Committee of the Board of
Directors on quarterly basis. Besides, the Standing Committee
on Customer Service has been reconstituted with the induction
of three personalities of public eminence as non-executive
members. The meeting of the committee are held on quarterly
basis.The Bank lays emphasis on improving customer service
par excellence to strive and achieve an ideal situation of
complaint free environment. However, whenever the
complaints are received, remedial measures are immediately
taken to redress them. The complaints are categorized on the
basis on the nature and gravity of the complaint by way of
ABC analysis and it is ensured to redress these within the
timeframe prescribed for the category. Besides, steps are taken
as per suggestions of the Standing Committee on Customer
Service towards grievance redressal and improvement of
customer service.

+{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 il J+/E E h xvi
{ |ii Ex i O x M * E x k
+Sx x]-i, i E E E ]+ |ii Ex
V J* E u Ji Ji {{i vx i Vi
iE E B H l E l Ei
VJ E E I E V E VE {Sx xvi x E
V Ei V Sx |nx Ex <E Ei +l Vx
B Sx |nx E V B +Mi , Vx =Si VS E
n ` E x E V Ei*
Sx |tME
J E{]Eh
E x lli 31.03.2010 E +{x i 2286 J+
(n J i), 66 i {] B z b/Ij
E E E{]Ei E i-|ii E{]Eh E
* E x +{x i p iV (41) E E{]Ei
E n *
ExpEi EM vx (B)
E E iV }i B E Exi E *
l 969 J+/ E E B E n V SE
Vx 81.68% E Si i *
l {Vx E xMx i , x < B {Vx
E l{i E M *
l bBE, x < b] ] l{i E M *
l Jx> bV] E Ep (b+) l{i E M
*
l B J+ E i |nx Ex + nx-|inx E
|Sx +x nCEi E vx i B {Vx
E { bE l{i E M *
<]x] EM
B J+ E OE i <]x] EM, < EM, BBB
EM + <-Mix vB { i {Sx * B

Know Your Customer & Anti Money Laundering Measures

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 time-to-time and all
branches/offices have been sensitized on submission of these
return within the prescribed time limit. Bank continues to submit
the monthly CTRs to Financial Intelligence Unit-India, Govt. of
India. Adequate precautions are taken by the Bank while
opening of accounts to protect the Bank from the risk of doing
business with any individual or entity whose identity cannot
be determined or refused to provide information, or who have
provided information that contains significant inconsistencies
which cannot be resolved after due investigation.
INFORMATION TECHNOLOGY
Branch Computerisation
The Bank has achieved 100% computerisation as on
31.03.2010 by computerising all its 2287 branches (including
Foreign Branch), 66 Extension counters and various Zonal/
Field Offices. The Bank has also computerised all its Currency
Chests (41).
Centralized Banking Solution (CBS)
The Bank has been implementing CBS at a very rapid pace.
l
l
l
l
l

969 branches/offices CBS covering 81.68% of Banks

business.
The CBS Project Office has been established at Vashi,
Navi Mumbai for monitoring the project.
Data centre has been set up at DAKC, Navi Mumbai.
Disaster Recovery Site (DRS) has been built at Lucknow.
Help Desk has been set up at CBS Project Office for
assisting the CBS branches and trouble shooting for daily
operations.

Internet Banking
Internet Banking, Mobile Banking, SMS Banking and
e-Payment facilities for customers of CBS branches are fully

45

operational. The customers of CBS branches can avail the

facility of Internet Banking and e-payment facility through
Banks Internet Banking website https://www.allahabadbank.in.
Online fund transfer through RTGS/NEFT provided to our
Internet Banking Customers.

J+ E OE E E xxEi <]x] EM <] E

v <]x] EM + <-Mix v E =` Ei :
https://www.allahabadbank.in. <]x] EM OE E
+]VB/Bx<B] E v +x<x xv +ih v
|nx E Vi *
Si ] x (B]B)
E nx OE E B <]] b] Eb v E M< *
E x 211 B]B l{i E + 892J+ E <xE x]E
Vc * +{x OE +v E i Ex + EV E {E
xx i E x 28 n E E l B]B x]E Ex E B
xx <x S (BxBB) E V<x E V
+<b +], n n E {Vx * E E OE 01.12.2008
x E | E |E E xnx i n +
Bx.B.B.B]B E ={M E Ei *
E x B]B--b] Eb V Ex i V E |J ni
|{i E + +{x OE E 81 V <]] B]B Eb i
6.46 J +vE B]B--b] Eb V E *

Automated Teller Machines (ATMs)

Instant debit card facility to the customers has started during
the year. The Bank has installed 211 ATMs and added 892
branches on its network. In order to broaden the customer
base and facilitate wider service coverage, Bank has joined
National Financial Switch(NFS), a project by M/S IDRBT
Hyderabad, an institute set up by RBI, for sharing ATM network
across 28 member Banks. Our Bank customers can access
all VISA & NFS ATM across the country for all sorts of
transaction without any charges from 01.12.2008.
The Bank is also having principal membership of VISA for issue
of ATM-cum-Debit card and has issued more than 6.46 lacs
ATM-cum-Debit cards including 81 thousand Instant ATM cards
to customers.

<C]xE Mix/x{]x |h
E E 896 JB u |Vi +]VB xnx
Mi E * +i E xnx +]VB i +{Ii
BBBB B{Ex E 896 J+ Exi E M *
+]VB i bV] E <] b+<], |vx E,
EEi l{i E M * BxbB/{b+ i
{Sx * Bx<B] E 897 J+ < x M *

Electronic Payment/Settlement System

+|iI E i =i{n B E <C]xE BE=]M

(<BB+<<B])
E x +{x 183 |vEi J+ E =i{n B E
<C]xE BE=]M (<BB+<<B]) Mi i I
x n * +|iI E (<-<BB+<<B ]) E B Eni+
i <-Mix v E V SE *
|iI E i +x<x J |h (+B]BB)
E x +{x 167 xq] J+ E +B]BB Mi
i I x n M * |iI E (b]-+B]BB) E
B Eni+ ; <-Mix v E V SE *
x]EM
l
B i n 39 x{(x]E BOMx {<]) l{i
EB MB *
l
E{] VM ] ] bx Exx E
|G *
l
B]B ExC]] i 271 ] (+<] + +x<]
nx) l{i EB MB *
l
E x +{x jE <] (www.allahabadbank.in) S
E V xn + +OV E l lx M E
Vc M *
l
<]x] E BB +ii E i {h l{i
E M *
b ExM

Electronic Accounting in Excise and Service Tax

(EASIEST) for Indirect Taxes

896 branches of the Bank are participating in RBI sponsored

RTGS transactions. SFMS application required for doing the
RTGS inter branch transactions has been implemented in 896
branches. The Disaster Recovery Site for RTGS has been set
up at DIT, Head Office, Kolkata. Server for NDS/PDO is also
operational. NEFT has been made live in 897 branches.

The Bank has made all of its 183 authorised branches enabled
for participating in Electronic Accounting in Excise and Service
Tax(EASIEST). e-Payment facility for Indirect Taxes (CBECEASIEST) has been launched for Tax payers.
Online Tax Accounting System(OLTAS) for Direct Taxes
The Bank has made all its 167 designated branches enabled
for participating in OLTAS system. e-Payment facility for Direct
Taxes(CBDT-OLTAS) has been launched for Tax payers.
Networking
l
l

l
l

39 NAPs (Network Aggregation Points) for CBS has been

set up across the country.
Corporate mail messaging system LOTUS DOMINO is in
the process of implementation.
271 VSATs (both offsite & onsite) has been set up for ATM
connectivity.
Bank has launched its Tri-lingual website
(www.allahabadbank.in) with the introduction of Vernacular
language Bengali along with Hindi & English.
The Internet Server has been shifted from USA to India
and was set up at Pune.

Video Conferencing
Video Conferencing System has been installed at the following
21 locations facilitating Executives in holding meetings, group
discussions, conducting training programmes etc. for officers/
employees of the Bank.

xxJi 21 l { b E M ] E S E M
iE E{E E `E Ex, SS + E E +vE +
ES E B |Ih EG Si Ex v E*
46

SL
No

lx/Location

SL
No

lx/Location

1
2
3
4
5
6
7
8
9
10
11

|vx E / Head Office

B] EEi / STC Kolkata
B] Jx> / STC Lucknow
+<+] {SE / IRT Panchkula
.E. < / ZO Mumbai
.E. EEi ] / ZO Kolkata Metro
.E. x< n / ZO New Delhi
.E. Sz< / ZO Chennai
.E. Jx> / ZO Lucknow
.E. S / ZO Ranchi
.E. +nn / ZO Ahmedabad

12
13
14
15
16
17
18
19
20
21

.E. SbMg / ZO Chandigarh

.E. vx/ ZO Ludhiana
]V J, </ Treasury Branch, Mumbai
B |VC] +/ CBS Project Office
.E. nn/ ZO Hyderabad
B] nn/ STC Hyderabad
BVB+ M/ FGMO Bengal
B] x/ STC Bhubaneshwar
B] {]x/ STC Patna
BVB+ Ex{/ FGMO Kanpur

SE ]Ex {ri
E x .. E E +{I E +x ] Vvx Ij
(Bx+) n E +iMi SE ]Ex ] E Exx
E |G E n * Bx+ G{ <b |..
< E Sx Gi E { E M *
JB + +< ]B |h E < +{x
J x< n E v nxE 27.06.2008 Mi
E *
]B {]

12 CHEQUE TRUNCATION

The Bank has already initiated the process of implementation of Cheque truncation system under National Capital
Region (NCR) of Delhi as per RBI requirement. M/s NCR
Crop. India Pvt. Ltd. Mumbai was selected as vendor.

Branches are participating in live operation of RBI CTS

system from service Branch New Delhi since 27.06.2008.

CTS Report

E nx CM h
Clearing Particulars during the Month

G..

Vx 10 / Jan10

/ Sl No.

VE

+E

/ Outward

/ Inward
1

J+ E E J

B <O] < JB

]B M JB

5
6
7

VE

/ Inward

/ Outward

Total No. Branches

65

65

Branched migrated to CBS

63

63

Branches Participating in CTS

4

10 / Feb10

+E

62

62

62

62

No. of Cheque Processed

176487

125926

160402

110844

No. of Cheque Processed through CTS

176487

125926

160402

110844

Amount Processed (in crores)

993.44

794.51

1221.37

885.83

Amount processed through CTS

993.44

794.51

1221.37

885.83

| E MB SE E .

]B E v | EB MB SE E J
| E M< (Ec )

]B E v | E
]B E v vi SE E (%)
(%) of Cheques cleared through CTS

100%

100%

+xvx B |tME E Ij ={v

Achievements in the Field of Research & Technology

+{x ES E =SS E] E iExE I |nx Ex +

cEM |tME +xvx + E i E x {kSE h
+xvx + |tME Exp l{i E * E x Exx,
JJ + J+ E i |nx Ex i +<] Y E
] M`i E V BSE+< E }] E E + M
CM i E EM*

The Bank has set up Institute for Research & Technology at

Panchkula, Haryana to impart high quality technical education
to its employees and to conduct research and development in
banking technology. The bank has formed a team of IT
specialists for implementation, maintenance and supporting
branches for development and bug fixing of HKI Banksoft
Software.

+i] EM :
E +{x +i] 53 |vEi/xq] J+ E
v Si Ei Vx 6 +xi] JB B 1
+xi]--+tME k J * 31.03.2010 E

INTERNATIONAL BANKING
The Bank carries out its International business through its 53
authorised / designated branches, which includes 6
International branches and 1 International cum Industrial

47

lli E E xi @h . 2345.61 Ec l* E xiE

E + +vE @h |nx Ex i En =` * z Exp
{ xiE E l ` E +Vi E Vi iE =x ={v
E V z v+ E VxE n V E* E
n |J E E l |ixv v xB Ji + 15
n E E l z p+ xE vx +xn E
Exi Ei * E +{x J+ E v +x i
E Vi E J J * E E BE Bx++< J
Vv *

Finance branch. Export Credit of the Bank as on 31.03.2010

stood at Rs. 2345.61 crores. The Bank is taking steps to
increase the credit flow to exporters. Exporters meets are
arranged at various centres to explain various facilities
available to them. The bank maintains correspondent
relationship with prime banks abroad and Standard Settlement
instructions in various currencies with 15 foreign banks. The
Bank is also catering to the need of Non-Resident Indians
through its branches. The Bank is having one NRI branch at
Jalandhar.

n ={li

Overseas presence

E E MEM BE n J Vx ix k
x +Vi E * J {U n {Sx
+Vi E * E E xZx, Sx BE |ixv E
V BE {h J E { E]=zx i {j *

Bank is having one overseas branch at Hong Kong which has

earned net profit in the current financial year. The branch is
earning operational profit during last two years. Branch is
having a Representative Office at Shenzhen, China which is
eligible for upgradation into a full fledged branch.

xIh B J{I
xIh + J{I |h +iE xIh, i J{I,
V J{I, <b{/+<B J{I, VJ +vi J{I
+ |h J{I E Vi * J+ E xi xIh E
l-l <b{/+<B J{I, ++<B, BS+ J{I
+ |h J{I E Vi *

INSPECTION AND AUDIT

Bank has a comprehensive Inspection & Audit Policy for
undertaking Internal Inspection, Concurrent Audit, Revenue
Audit, EDP/IS Audit, Risk Based Internal Audit(RBIA),
Management Audit, Human Resource (HR) Audit and System
Audit. EDP/IS Audit, RBIA, HR Audit & System Audit are carried
out concurrently with regular inspection of Branches.

c J+, i c J+, +vh { c J+,

C E ]V J + bM +n E i J{I
i +li xn JE E u xnx E ll VS*

Branches including Large, Very Large, Exceptionally Large,

Forex-cum-Treasury Branch and Dealing Rooms etc. are
subjected to Concurrent Audit, that is, simultaneous checking
of transactions, by outside Chartered Accountant Firms.

2009-10 E nx 1649 J+, 42 E S], 13 b

E, |vx E E 15 M, 03 ] |Ih Exp
+ 02 Ij xIh E E xi xIh E M* 32
b E |vx J{I E M< VE 45 b
E, 8 B+<+ + 06 B] xi xIh (V
M) E M*

During the year 2009-10, regular inspection was carried out at

1649 branches, 42 Currency Chests, 13 Zonal Offices, 15 Head
Office Departments, 03 Staff Training Centres (STC) and 02
Field Inspection Offices(FIO). Management Audit was also
conducted in 32 Zonal Offices whereas Regular Inspection
(Revenue Part) was covered at the 45 Zonal Offices, 08 FIOs
and 06 STCs.

+iE xjh E EM x]M xSi Ex, +xii+

E {vx < |Mi, xIh {] < n Ex { S
Ex i b E i { b xIh i (Vb+<)
M` i V b |J xE il Ij xIh E
(B+<+) |J n i * b xIh i E ` E
uE +i { +Vi E Vi *

At Zonal Office level, Zonal Inspection Committees (ZIC) are

formed with Zonal Head as convener and FIO Head as member
to ensure effective monitoring of Internal control system,
progress in rectification and considering closure of inspection
report files. The meetings of ZIC are conducted at bi-monthly
interval.

iEi

VIGILANCE

E u +{x< M< iEi xi Exp iEi +M, i

V E + k j u V z nxn E +x{
* z xE ={ E v E E{], VV,
EnS E Ex + xji Ex E B +{Ii En =`B
Vi * B E E|h + <E |hlE EE E
xi { {{j E v |i E Vi iE =x
Si { Ii E V E + B P]x+ E {xk

The vigilance policy followed by the Bank is in consonance

with the various guidelines/directives issued by the Central
Vigilance Commission, Reserve Bank of India and Ministry of
Finance from time to time. Requisite steps are taken to contain
and control fraud, forgery, malpractice etc, in the Bank through
various preventive measures. Modus operandi of such cases,
as also causative factors leading to the same, are regularly
communicated to the field functionaries through Circulars, so

48

E E V E* E E n Ex i vJvc E x
J+ E xi +v { +EE iEi xIh
E Vi * iEi E I|n ={ E { xi {
|Ih j + x +Vi EB Vi * U nx + +vE
E |Ih EG xE iEi vi BE n j
EB Vi * +iE xjh ij v x i V E
+E |h v EB Vi * E{E u Ij E
n E <x {+ E =VM E Vi * il{,
n +vE E r +xxE E< E v nbiE
E< E Vi i n E B Six E E Ei *
|Ih j, x, E+ +n +iE xjh +
xE iEi I|n ={ { n Vi *

as to educate them properly and avoid recurrence. Surprise

Vigilance Inspection of fraud-prone Branches is to plug the
loopholes. As measures of educative vigilance, training
sessions and seminars are regularly conducted. In every
training programme of duration 6 days & above, one or two
sessions are incorporated on preventive vigilance. Systems
improvement, whenever necessary, is taken up, to usher
internal control mechanism. All these aspects are highlighted
during field visits by the executives. However, punitive action
is also taken against the erring officials through disciplinary
proceedings, which acts as a deterrent to others. Stress is
also given on measures of educative vigilance through training
sessions, seminars & workshops.

Official Language

E EG xvi I E |{i Ex E =q V
xi E +iMi z |vx E +x{x xSi E M*
inx, V +vx E v 3 (3) E +iMi uE {
niV V Ex, xn |{i {j E =k xn nx,
x+ + Eb E uE |Ex, Jx O n E
uEh vi vE +{I+ E {x E M*
E nx, xn E EvE Yx x Jx +xE +vE
B ES E i E u Si z xn {`G
xi E M* 86 xn EB (1613 +vE/
ES x M ) B 78 bE |Ih EG (695 +vE/
ES x M ) E nx +Vi EB MB*

Compliance of various provisions under the Official Language

Policy was ensured in order to achieve the targets stipulated
in the Annual Programme. Accordingly, statutory requirements
in regard to 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. During the year, a large number
of Officers & employees, not having working knowledge of
Hindi, were nominated for various Hindi courses conducted
by the Government of India. 86 Hindi workshops (1613 officers/
employees participated) and 78 Desk Training programmes
(695 officers/employees participated) were organized, during
the year.

n V i u nxE 31.10.2009 E ix
b E +iMi {z J E xn |M v xIh E M*

The Parliamentary Committee on Official Language conducted

an inspection of our Panna Branch under Satna Zone on
31.10.2009 regarding use of Official Language.

n V i E +J B I ={ i x nxE
21.10.2009 B 19.03.2010 E xE E v G:
hb E, nn B b E, { E l
S- EG E* i E n x E u V
E |M E n EB V | E x E*

The Drafting and Evidence sub-Committee of the Committee

of Parliament on Official Language held a discussion
programme on 21.10.2009 and 19.03.2010 with Zonal Office,
Hyderabad and Zonal Office, Raipur respectively through the
Town Official Language Implementation Committee. The
members of the Committee appreciated the efforts being made
by our Bank in regard to use of Official Language.

i V E E EM n l i E BE ` E
|vE (V) E EM B v Y E { v
n E +i { nx E B +ji E M*

Our General Manager (Official Language) was invited as a

specialist of Banking and Law in a meeting of the Banking
Glossary Standing Committee of Reserve Bank of India to
finalise legal words.

i V E x nxE 29.07.2009 E hb E,
Ex{, nxE 26.06.2009 E hb E, ShbMg +
nxE 06.06.2009 E hb E, EEi (+x) B
E J E xIh E + E u V |M E
v E EB V | E x E*

The Reserve Bank of India inspected our Zonal Office, Kanpur

on 29.07.2009, Zonal Office, Chandigarh on 26.06.2009 and
Zonal Office, Kolkata (Urban) & Kasba Branch on 06.06.2009
and appreciated the efforts being made by our Bank in regard
to use of Official Language.

H xnE (V), k B M, k j, i
E x nxE 27.03.2010 E |vx E E xn
|M v xIh E + E u V |M E
v EB V | E i iVxE {* i E,
M j, V M E Ij Exx E ({ Ij)
EEi E ={ xnE u b E, E

Joint Director, Financial Services Department, Ministry of

Finance, Government of India inspected our Head Office on
27.03.2010 and found the efforts being made by our Bank in
regard to use of Official Language very satisfactory. The Deputy
Director, Regional Implementation Office (Eastern Region),
Kolkata, Government of India, Ministry of Home Affairs, Official
Language Deptt. inspected our Zonal Office, Behala on

49

nxE 04.12.2009 E xn |M v xIh E M +

E u xn |M E n EB MB | E x E M<*

04.12.2010 and appreciated the efforts made by the Bank

towards the use of Hindi.

E x i E n xn E { x* <
+ { +vI B |v xnE n x xn E |M
|M i BE +{ E v i +vE B ES
E +x E* xn E nx +J i xn xv
Jx i z |iMiB +Vi E M<*

The Bank observed the month of September as Hindi Month

throughout the country. On this occasion, our Honble
Chairman & Managing Director called upon all the officers and
employees for progressive use of Hindi, through an appeal.
During the month, various competitions including All India
Essay Writing in Hindi were organized.

E x xn |M E Ij =iE] Ex{nx i E< ] i

E {E |{i EB- V E V b |iMi 200708 i E x Ij E ii lx |{i E* V
E V b |iMi 2008-09 E +iMi E E
Ij E ii lx |{i + * <E +, hb
E, EEi (]) E { Ij Ij Exx V
{E Vx E +iMi Ij Exx E, i E,
M j V M u |l {E |nx E M*
hb E M] E {k Ij Ij Exx V
{E Vx E +iMi Ij Exx E, i E,
M j V M u ui {E |nx E M*
hb E, ` E =k Ij Ij Exx V
{E Vx E +iMi Ij Exx E, i E,
M j V M u ii {E |nx E M*

The Bank received several national level prizes for outstanding

performance in the area of implementation of official language;
Third Position in linguistic region Aunder Reserve Bank
Rajbhash Shield Competitionfor the year 2007-08. The Bank
has also been awarded Third Position in linguistic region A
for year 2008-09 under Resereve Bank Rajbhash Shield
Competition. Also, Zonal Office, Kolkata (Metro) was awarded
First Prize by Regional Implementation Office, Govt. of India,
Ministry of Home Affairs, Deptt. of Official Language under
Regional Implementation Rajbhasha Puraskar Scheme in
Eastern region. Zonal Office, Guwahati was awarded Second
Prize by Regional Implementation Office, Govt. of India,
Ministry of Home Affairs, Deptt. of Official Language under
Regional Implementation Rajbhasha Puraskar Scheme in
North-East region. Zonal Office, Meerut was awarded Third
Prize by Regional Implementation Office, Govt. of India,
Ministry of Home Affairs, Deptt. of Official Language under
Regional Implementation Rajbhasha Puraskar Scheme in
Northern region.

E E uE M {jE jh v E 2007-08
i i V E u i VxE Ij E E B k
lx E S |l {E |{i + + 2008-09 i
uE M {jE |iMi E +iMi jh v E B
|l {E E Ph E M<*

Our Banks bilingual House Magazine Triveni Dhara received

First Prize by the Reserve Bank of India among all the public
sector banks and financial institutions for the year 2007-08
and again the First Prize has been announced for Triveni
Dhara for the year 2008-09 under bilingual House Magazine
Competition.

xM V Exx i {E E +iMi V E
=iE] Exx Exx E B E E |vx E E
`i |h{j, ] |Ih Exp nn E |l {E,
hb E, nnx E ui {E il hb E,
Sz E ui {E |{i B*

Under the Town Official Language Implementation Committee

prizes, Banks Head Office received the Excellency
Certificate, Staff Training Centre, Hyderabad received the First
Prize, Zonal Office Dehradun and Zonal Office, Chennai
received the Second Prizefor excellent implementation of
Official Language.

E nx b E S E VEi xM
V Exx i (E), S E xvi n ` E c
J {v n E Mi E l {z <*

During the year, two meetings of Town Official Language

Implementation Committee (Bank), Ranchi were organized in
the convenorship of our Zonal Office, Ranchi with the
participation of members in large number.

x vx E

HUMAN RESOURCES DEVELOPMENT

i E E { =x E E E u x vqkse fuU
rJfUtm fUtu rJNuM bnJ r=gt dgt* x vx E Ii E
E i { E M< + i{h EIj =xE
nIi E Ei Ex, +i] x E B =x
i E V *

The Bank laid prime importance on developing human capital

in tune with its quest to emerge a bank of global stature.
Initiatives have been taken for capacity building of human
resources by focusing their competencies and maximizing their
potential in critical & vital functional areas, handling
international business and adequate succession plan.

50

Manpower

VxH
E E VxH li xxx |ni :
M /

The manpower complement of the Bank is depicted hereunder:

Category

Officer

{E /

Clerk

Sub-staff

E ] / Total Staff
V / Of which
+xSi Vi / Scheduled Castes
+xSi VxVi / Scheduled Tribes
+x {Uc Vi / Other Backward Castes
B / Women
+x (+, , {, ) / Others (MC, PH, & XSM)

31.3.2009

31.3.2010

8,202

8,425

7,631

8,249

4,624

4,285

20,457

20,959

5,130

5,506

1,041

1,194

700

1,207

2,260
1,779

2,560
1,882

i B {nzi

Recruitment & Promotion

E x 2009-10 E nx 1000 +vE (Y +vE

i) + 1000 {E M E ES E i E* E
nx +vxl ] M E +vE M =SSi i
iE M {nzi |G { E M<* { ix
|vE +x VxE Ij E E E{E xnE E {n
{ {nzi B*

During 2009-10, the Bank undertook processes for recruitment

of 1,000 Officers (including Specialist Officers) & 1000 clerical
cadre employees. Promotion Processes were completed in
all cadres during the year starting from the lowest rung in
subordinate staff cadre to the highest rank in Officers cadre.
For the first time, three of our General Managers were elevated
to the post of Executive Director in other Public Sector Banks.

+tME v

Industrial Relations

n{h B n{h +tME v { E {` E

Ei + {{E i E q E - { xi |{i
+vE BBx + EE xx E l u{I S {
SS E x{] M*

In the backdrop of prevailing cordial & harmonious industrial

relations climate scenario, the collective grievances and issues
of mutual interest were discussed and settled in the bilateral
forums with the recognized Officers Association and Workmen
Union.

Eh

Welfare

E x +{x < |iri E +x{ E x vx M`x E k

{k , z EhE VxB E V i) i ES/
+vE i O{ bC {, ii) 40 +vE
{j ES/+vE B =xE {i/{ix i x l {I,
iii) ES/+vE E SS i Ujk, iv) xE EM
SS ES/+vE i k i, v) E n x
i ES/+vE E Ei{i { E .1.00 J E +xO
+ vi) xk ES + =xE n{k E .1.00
J E ] EV bC | E |i{i E +v
2009-10 iE g< M< *

In tune with Banks conviction that the Human Resources are

the greatest asset of the organisation , Various welfare shemes
such as i) Group Mediclaim Insurance Policy for all the
Employees/ Officers ii) General Health Check up for all eligible
employees /officers above 40 years & their spouse iii)
Scholarship to the Wards of the Employees/Officers IV)
Financial assistance to the Employees/Officers having
mentally challenged children v) Death exgratia of Rs 1.00 lakh
to the bereaved family of the deceased employee/ Officer dying
in harness and vi) Reimbursement of Mediclaim Insurance
premium to all retired employees and their spouse with a floater
coverage for an amount of Rs. 1.00 lakh have been extended
in the year 2009-10.

+E <xx .

ALLBANK FINANCE LTD.

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

E{x VE {V +v .15 Ec * E{x b h-I
S] EM + +b<] E { {VEi * +E <x
]b fUthvtuhux E , {Vx Ex, < |vx,

AllBank Finance Ltd. a wholly owned subsidiary of Allahabad

Bank with a capital base of Rs.15 crores. The company has
obtained Category-I Merchant Banking and Underwriting
registration from SEBI. AllBank Finance Ltd. engaged in

51

@h x, bS + ]]{ +b<]M E E M <

* E{x x 2008-09 E .9.41 Ec E E {I 200910 E nx .7.28 Ec E nV E*

Corporate Advisory Services, Project Appraisal, Issue

Management, Loan Syndication Debenture and Trusteeship
Underwriting. The subsidiary posted a profit of Rs.7.15 crores
during 2009-10 as against Rs.9.41 crores during 2008-09.

VxB

FUTURE PLANS

E x S E nx MM 25% E n r
E I xvi E *

The Bank has projected a business growth of around 25%

during the current year.

E +{x E EM Miv E l-l Jn ,

@h bEx, h CE E G, BB B EB
{ vx Expi EM*

The Bank will focus on Retail Business, Loan Syndication,

Sale of Gold Coins CMS and Bancassurance etc. in
addition to the core banking activities.

E n i E Vx x + |G
MEM J B xZx, Sx |ixv E Jx E
l E V SE * i W E B Mn
E +xnx |{i Vx E ={i fE, Mn
|ixv E Jx E S *

The Bank is looking ahead to spread out overseas. The

process has already been initiated with a branch at Hong
Kong and representative office at Shenzen, China. A
representative office at Dhaka , Bangladesh is also being
contemplated after receipt of approval from Reserve Bank
of India and Government of Bangladesh.

Y x {V E E Ex i E x z En =` B
*

The Bank has initiated various steps to develop a pool of

knowledgeable Human Capital.

xnE b

BOARD OF DIRECTORS

2009-10 E nx xnE b, b E |vx B J {I

i x G: 12, 20 B 8 ` E E* 2009-10 E nx
xnE {nzi i, vE / xE E Ei(xh)
i, Sx |tME ={ i, vJvc xMx i, OE
i, x v i, {v i B VJ |vx
i, xEx i, +ih i x G: 5,2,7,3,4,4,1
B 16 ` E E*

The Board of Directors, the Management Committee and the

Audit Committee of the Board met 12, 20 and 8 times
respectively during 2009-10. The Directors Promotion
Committee, Shareholders/Investors Grievance Committee, IT
Sub-Committee, Fraud Monitoring Committee, Customer
Service Committee, Renumeration Committee and Risk
Management Committee ,Nomination Committee, Share
transfer Committee of the Board met 5, 2,7, 3, 4, 4,1 and 16
times during 2009-10.

b. E x nxE 07.12.2009 E E E E{E xnE

E { E Oh E* ix xH { E E
+ cn E E{] E < |vE (lE EM/
@h) l* =x 27 E EM E +x * =xx J+,
Ij E, b E + E{] /|vx E
z i E E *

Shri D. Sarkar has assumed the office of Executive Director of

the Bank on 07.12.2009. Prior to his present appointment, Shri
Sarkar was the General Manager (Wholesale Banking / Credit)
of Bank of Baroda at Corporate Office, Mumbai. He has 27
years experience of Banking and had worked in various
capacities and had worked in various capacities in Branches,
Regional Office, Zonal Office and Corporate / Head Office.

B. +. xE x nxE 22.01.2010 E E E E{E

xnE E { E Oh E* +{x ix xH {
xE E{x E E |vx E, M |vE l*
xE E 39 E EM +x * =xx J+ B
E{]/|vx E z {n { E E * =xx E
u h EM x +i M Ex J E x< V
i EM =tM { +*

Shri M.R. Nayak has assumed the office of Executive Director

of the Bank on 22.01.2010. Prior to his present appointment
Shri Nayak was the General Manager of Corporation Bank,
Head Office, Bangalore. Shri Nayak has 39 years experience
of Banking. He has worked in various capacities in Branches
and Corporate / Head Office. He was instrumental in
introducing gold banking import of bullion by the Bank, one of
the first in banking industry in India.

b. EVM nxE 12.06.2010 vE E |ixv xnE

E { xSi x MB* b. EVM x +<+<] <
|bCx <VxM B]E E, E <]S] + ]CxV
BB +{x S + E{] Yx B.B E +
1974 +<+<], < {BSb E* EVM 1975
i |vx lx, M Ei * ] + +i]
Vx =xE 40 +vE J |Ei SE * =xE S E

Dr. Kaujalgi is deemed to be elected as Director representing

shareholders with effect from 12.06.2010. Dr. Kajulgi, an
M.Tech in Production Engg. from IIT, Mumbai, M.S. in
Operations Research and Computer Science from Case
Institute of Technology, U.S.A. and Ph.D. from IIT, Mumbai,
has been serving Indian Institute of Management, Bangalore
since 1975. He has over 40 publications in National &
International journal. His areas of interest include Computer

52

Ij bu, fUkvqxh Yl, Sx |h, {Sx +xvx,

gE + =i{nx {Sx |vx * x, 1995
+H, 1998 iE i ]] E E Exp b E xnE
l* 25.10.2005 24.10.2008 iE E + <b E b
vE xnE l*

Science, Information Systems, Operation Research, Statistics

and Production / Operation Management. He was the Director,
Central Board, State Bank of India from November 1995 to
October 1998. Also, he was the Shareholder Director on the
Board of Bank of India from 25.10.2005 to 24.10.2008.

ACKNOWLEDGEMENTS

xnE b E E vE/xE E =xE ii lx

+ Ih i vxn Y{i Ei * xnE b i
V E, i E il +x xE BVx 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 xnE b =xE vxn Y{i Ei *

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.

xnE b xk x n E Mnx E
x Ei + xB n 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,

n
EEi
30 +|, 2010

Yours sincerely,

+{E
Kolkata
30th April 2010

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

53

(J. P. Dua)

Chairman & Managing Director

-II E +iMi V |E]Eh

lli 31.03.2010 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 xV Xi B vE E E gx *

3.

E x +{x VJ |vx E Si MXxiE gS M`i E * VJ |vx |h { 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.

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 * 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*

54

MARKET DISCLOSURE UNDER BASEL-II

NEW CAPITAL ADEQUACY FRAMEWORK AS ON 31.03.2010
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.

A 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.

55

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< ; :t

iv)

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

V x VJ +vi )

31.03.2010 E lli

|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

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 Miv {i x * il{, E x xxJi
H =t E{x x E :

E E x
x { Vx
< E{x ]b

n xMx
i

(%)

30%

+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 *
E E +B+ E Mhx i +xM + E E{x EB MB
x E ]-I + ]-II {V x { P] M +
H =t E{x x E i V E E nxn E
+x x E n xi B i VJ x M *

{hiE |E]Eh
1

Ex x E M< +xM {V Mi
E E E j +li V P]< M< + B
+xM E x*

E +xM E r {V E 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 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 *

56

Table DF 1
SCOPE OF APPLICATION

Position as on 31.03.2010

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
i) that are fully consolidated;

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

ii) that are pro-rata consolidate;

iii) that are given a deduction treatment; and
iv) That are neither consolidated nor
deducted (e.g. where the investment is riskweighted).

Country of
Incorporation

Ownership
(%)

India

100%

Associates: Two Regional Rural Banks sponsored by the Bank are

as under.
Name of Banks

Country of
Incorporation

Ownership
(%)

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 is not involved in the insurance activity.
However, the bank has invested in Joint Venture Insurance company as under:
Name of Company

Country of
Incorporation

Ownership
(%)

India

30%

M/S Universal Sompo

General insurance
Company Limited

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 and
associates are deducted from Tier-I and Tier-II capital equally and
investment in joint venture insurance company is risk weighted as
per RBI guidelines, treating the same as an item of investment.

QUANTITATIVE DISCLOSURES
1

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 its total issued capital. Investment in
joint venture insurance company is risk weighted as per RBI guidelines, treating the same as an item of investment.

57

h bB - 2
{V Sx

31.03.2010 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 *

( . Ec )

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<
]-I {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)

6175.58
446.70
5450.19
300.00
0.00
21.31
4189.60

1000.00
500.00
1000.00

2491.90
450.00
2491.90
21.31
10365.18

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

G..

+]x
E il

b
( .
Ec )

E{x n

+v

V Mix il

S r

30.03.2009

150.00

9.20%

|i 30 S

BxB<

18.12.2009

150.00

9.08%

|i 18 n

BxB<

58

]M
E-BB+
G-BB+
E-BB
G-BB+

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

G..

+]x
E il

b
( .
Ec )

E{x n

+v

V Mix il

S r

]M

19.03.2009

500.00

9.28%

180

|i 19 S

BxB<

18.12.2009

500.00

8.58%

180

|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

31.03.2003

100.00

7.00%

31.03.2004

200.00

13.03.2006

500.00

29.09.2006

561.90

25.09.2007

500.00

26.03.2009

400.00

04.08.2009

450.00

2711.90

+v

b
(]]Ei)
(Ec )
0.00

85

5.90%

80.00

99

8.00%

500.00

120

8.85%

561.90

120

10.00%

500.00

120

9.23%

400.00

120

8.45%

450.00

120

2491.90

59

V Mix il
31 S

S r

B<

]M
S- BB

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 31.03.2010

Qualitative Disclosures
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.

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
1

Quantitative Disclosures

(Amount Rs in Crores)

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

6175.58

1.1

paid-up share capital;

446.70

1.2

reserves;

1.3

innovative perpetual debt instruments;

1.4

other capital instruments;

1.5

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

5450.19
300.00
0.00

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

21.31
4189.60

3.1

Total amount outstanding

1000.00

3.2

Of which amount raised during the current year

500.00

3.3

Amount eligible to be reckoned as capital funds

1000.00

Subordinated debt eligible for inclusion in Lower Tier II capital

4.1

Total amount outstanding

2491.90

4.2

Of which amount raised during the current year

450.00

4.3

Amount eligible to be reckoned as Capital funds

2491.90

Other deductions from capital, if any.

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

21.31
10365.18

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+

60

RATING

Information about Innovative Instruments eligible under Upper Tier-II:

19.03.2009

BOND
AMT. (In
Rs. 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.

BOND
COUPON
AMT.
(In
RATE
ALLOTMENT
Rs. Crores)
100.00
7.00%
31.03.2003
DATE OF

TENOR

85
months

BOND AMT.
(Discounted)
(in crores)
0.00

INTEREST
PAYMENT DATE

LISTED

RATING

31th March
Annual

BSE

FITCH- AA

31.03.2004

200.00

5.90%

99
months

80.00

31th March
Annual

BSE &
NSE

CARE- AA+
FITCH- AA

13.03.2006

500.00

8.00%

120
months

500.00

13th March and Sept.

Semi-Annual

NSE

CARE- AA+
CRISIL- AA+

29.09.2006

561.90

8.85%

120
months

561.90

29th September
Annual

NSE

CARE- AA+
CRISIL- AA+

25.09.2007

500.00

10.00%

120
months

500.00

31th March
Annual

NSE

CARE- AA+
CRISIL- AA+

26.03.2009

400.00

9.23%

120
months

400.00

26th March
Annual

NSE

CARE- AA+
CRISIL- AA+

04.08.2009

450.00

8.45%

120
months

450.00

04th August
Annual

NSE

CARE- AA+
CRISIL- AA+

TOTAL

2711.90

2491.90

61

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

31.03.2010 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 {V Mi 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 2008 E {]Eh V EB * EU +vE {ix E ]
Ei B i V E x 08 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 x 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 31.03.2010 E 13.62% |ii xEi * ] I +B+ E E
6.00% E xvh E {I 8.12% * xEEi o]Eh E +iMi @h VJ E B {V E Mhx , E x |iE J
|{i =vEi +Ec { E * < |Vx i E x J i, b i il |vx E i { Ui {]
i Ex E B +iE +iE{i |{ Ei 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 * xvi o]Eh E +x @h VJ,
V VJ + {SxMi VJ E B {V E E |vx E Mhi E M< Vxx E E ={H +B+
li xE* {j {V , VJ i +i + +B+ E {Ex Ex E B E x E E |Si nxn E
{x E *
6. E xxi +{x {V Vi E Ex E * E E { ] I + ] II {V Oh E B ={v b E
Miv E B +{Ii +B+ E { Ex E B {V Sx E +iH { lx EM*

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
( E iE o]Eh)
E B ]-I {V +x{i :
4.1 E +B+
4.2 ] I +B+

( . Ec )
5694.58
5694.58

x
665.94
235.39
26.82
403.73
486.40

13.62%
8.12%

62

Table DF 3
CAPITAL ADEQUACY

Position as on 31.03.2010

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 off-balance
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 Feb 08, 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 continued the parallel run of Basel I norms and studied 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
13.62% as on 31.03.2010. The Tier-I CRAR stands at 8.12% 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. For this purpose, the Bank has developed in-house designed format for generation of desired reports, at
Branch, Zonal and Head Office level. 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 Capital for Credit Risk, Market risk and Operational Risk as per the prescribed approaches has been computed at the banks Head Office to arrived at the banks
aforesaid CRAR position. The bank has followed the RBI guidelines in force, to arrive at the eligible capital, risk
weighted assets and CRAR.
6.

The Bank is continuously evaluating its capital requirement. The sufficient headroom available for the bank for
mobilizing Tier I and Tier II capital shall additionally support capital structure to meet the required CRAR against future
activities.

Quantitative Disclosures

SL
No
1

Capital requirements for Credit Risk:

1.1
portfolios subject to standardized approach

3
4

5694.58
5694.58

1.2
securitization exposures
Capital requirements for Market Risk(Standardize Duration Approach
2.1
2.2

interest rate risk

foreign exchange risk(including gold)

Nil
665.94
235.39
26.82

2.3
equity risk
Capital requirements for Operational Risk (Basic Indicator Approach)
Total and Tier-1 Capital Ratio:
4.1
Total CRAR
4.2

(Amount Rs in Crores)

403.73
486.40
13.62%

Tier-I CRAR

8.12%

63

h bB - 4
31.03.2010 E lli

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

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 S x, E B ni
il |G+ E {i Ei VE v E E x @h VJ E {Sx, ytfUtl Ex nn i + =xE
|vx = S x 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 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 { ri i: +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 *

{hiE |E]Eh
Bucketwise Position of Assets as on 31.03.2010
Next

h
+i

ASSETS

nx
5819.97

From
2-7

nx

6553.20

From
8-14

nx

3662.22

From
15-28

nx

3098.97

From

Above

29

nx-3

3-6

6-12

12784.41

9825.23

6403.08

64

Above

( . Ec )

Above
1-3

27786.46

Above
3-5

Over
5

10283.92 35481.75 121699.21

G .
1

4
5

6
7

10
11
12

{hiE |E]Eh
E E @h VJ BC{V , xv +vi B M-xv +vi +M-+M
1.1 xv +vi
1.2 M-xv +vi
2.BC{V E ME ih
2.1 n :
2.1.1 xv +vi
2.1.2 M xv-+vi
2.2 P :
2.2.1 xv +vi
2.2.2 M xv-+vi
=tM { E BC{V E ih
xv +vi
M-xv +vi
+i E +] nMi {{Ci
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
65

( . Ec )
72437.31
11618.83

845.66
15.54
71591.65
11603.29

33695.00
1221.80
662.80
147.63
199.64
160.78
50.95
470.15
1.69%
0.66%
1078.25
1238.15
1094.60
1221.80
641.64
830.21
776.13
55.93
751.65

4.40
220.10
31.70

251.80

Table DF 4
CREDIT RISK : GENERAL DISCLOSURES

Position as on 31.03.2010

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 Credit 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 Directors termed as Risk Management Committee (RMC) has been constituted by the
Board to specifically oversee and co-ordinate Risk Management functions in the bank.
3.2 The Credit Risk Management Committee 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.

Quantitative Disclosures
Bucketwise Position of Assets as on 31.03.2010
Particulars
ASSETS

Next

From

From

From

From

Above

day

2-7 ds

8-14 ds

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

5819.97

6553.20

3662.22

3098.97

12784.41

66

9825.23

Above

6403.08

(Rs. in crores)

Above

Above

Over

1-3yrs

3-5yrs

5 years

27786.46

Total

10283.92 35481.75 121699.21

Quantitative Disclosures

SL
No
1

(Amount Rs in Crores)

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

72437.31

1.2 Non Fund Based

11618.83

Geographic distribution of exposures

2.1 Overseas
2.1.1 Fund Based

845.66

2.1.2 Non Fund Based

15.54

2.2 Domestic

2.2.1 Fund Based

71591.65

2.2.2 Non Fund Based

11603.29

Industry type distribution of exposures

Fund based

33695.00

Non Fund based

4

Residual contractual maturity breakdown of assets,

Amount of NPAs (Gross)

1221.80

5.1 Substandard

662.80

5.2 Doubtful 1

147.63

5.3 Doubtful 2

199.64

5.4 Doubtful 3

160.78

5.5 Loss
6

Net NPAs

NPA Ratios

50.95
470.15

7.1 Gross NPAs to gross advances

1.69%

7.2 Net NPAs to net advances

0.66%

Movement of NPAs (Gross)

8.1 Opening balance

1078.25

8.2 Additions

1238.15

8.3 Reductions

1094.60

8.4 Closing balance

1221.80

Movement of provisions for NPAs

9.1 Opening balance

641.64

9.2 Provisions made during the period

830.21

9.3 Write-off

776.13

9.4 Write-back of excess provisions

55.93

9.5 Closing Balance

751.65

10

Amount of Non-Performing Investments

11

Amount of provisions held for non-performing investments

12

Movement of provisions for depreciation on investments

12.1 Opening balance

4.40
220.10

12.2 Provisions made during the period

31.70

12.3 Write-off

12.4 Write-back of excess provisions

12.5 Closing balance

251.80

67

h bB - 5
@h VJ : xEEi o]Eh E +vvx M i |E]Eh
MhiE |E]Eh
1.

31.03.2010 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 n E ]M { xi E +iMi <x Gb] ]M BV 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 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 31.03.2010 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)

84438.71

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

43844.14
27150.21

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

1.2 (J) 100% VJ i- (M- xvE)
1.3 (E) 100% VJ i +vE -(xvE)
1.3 (J) 100% VJ i +vE- (M-xvE)
1. 4 P] M

9547.00
6996.08
1263.19

68

Table DF 5
CREDIT RISK : DISCLOSURES FOR PORTFOLIOS SUBJECT TO THE STANDARDIZED APPROACH
Position as on 31.03.2010

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 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 Credit Rating
Agencies. 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
banks approved ECRAs, while computing capital for credit risk as on 31.03.2010 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
No
1

(Amount Rs in Crores)
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)

84438.71

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

43844.14

1.2 (a) 100 % risk weight (Funded)

27150.21

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

9547.00

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

6996.08

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

1263.19

1.4 Deducted

69

h bB - 6
@h VJ {x : xEEi o]Eh i |E]Eh

31.03.2010 E lli

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 i <x M] E { E Vi : (E) Exp
E E M] (0%), (J) V E (20%) (M) V]B+< (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 E xph VJ E xEh i E< /=SSi xvi x fUe dRo ni*

G .
E.

J.

{hiE |E]Eh
{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
{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< )

70

( . Ec )

3105.11

Table DF 6
CREDIT RISK MITIGATION : DISCLOSURES FOR STANDARISED APPROACHES
Position as on 31.03.2010

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 taking mitigation, in line with RBI Guidelines are (a) Central Government
Guarantee (0%) (b) State Government (20%) (c) CGTSI (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

Quantitative Disclosures

(b)

For each separately disclosed credit risk portfolio the total exposure
(after, where applicable, on- or off balance sheet netting) that is covered by
eligible financial collateral after the application of haircuts.

(c)

For each separately disclosed portfolio the total exposure (after, where applicable, on or off-balance sheet netting) that is covered by guarantees/credit
derivatives (whenever specifically permitted by RBI)

71

(Amount Rs in Crores)
3105.11

Nil

h bB - 7
|iiEh : xEEi o]Eh i |E]Eh
MhiE |E]Eh
E.

J.

(M)

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

:

|iiEh Miv E v E E =q, = iE VE ii

Miv |iiEi BC{V E @h VJ E E <i i +ii
Ei *

+x VJ (+li ii VJ) |iiEi +i +ixi *

E u |iiEh E< x< M< z EB (+li +Vx],

xE, , @h r |ni, ii |ni) + |iE E E Mi E
E Ei

|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 * )

|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 :
C xnx E G k{h x Vi *
vi +l G E M< li E x i |M < M< {ri + |J
{xx*
{U +v {ri + |J {xx {ix + <x {ix E |*
|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

G
.
P.

E u |iiEi E E BC{V

R.

S +v E n x 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.

(b.) E +n =i{z +i E

V.

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

+xYi +l x

Z.

xxx E

\.

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 |

{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 )
72

31.03.2010 E lli

31.3.2010 E {i i E<
|iiEh x*

+|V

( . Ec )

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
BC{V { E h E +x |ivi +l G EB MB +x
] |iiEh BC{V*
BC{V { E h E +x + ] |iiEh BC{V
|ivi +l G EB MB |iiEh E E xxx {lE { :
xn] VJ i {E VJ ={ E +vvx |ivi +l G E
M |iiEh BC{V
z VJ i b xn] VJ h i |iiEh Sx E
+vvx |iiEh BC{V
xxJi E E
{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 v]B MB @h r
+</+ il E {V P]B MB +x BC{V (BC{V { E +x )

73

( . Ec )

Table DF-7
SECURITIZATION : DISCLOSURE FOR STANDARDIZED APPROACH
QUALITATIVE DISCLOSURES
Position as on 31.03.2010
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;

the nature of other risks (e.g., liquidity risk) inherent in securitized assets

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

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)

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:

(c)

Whether the transactions are treated as sales or financings

Methods and key assumptions (including inputs) applied in valuing positions retained or purchased

Changes in methods and key assumptions from the previous period and impact of
the changes

Policies for recognizing liabilities on the balance sheet for arrangements that could
require the Bank to provide financial support for securitised assets.
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 31.03.2010

Nil

Not Applicable

Quantitative Disclosures : Banking Book

SL
No

(Amount Rs in Crores)

(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)

(j)

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

Aggregate amount of securitisation exposures retained

or purchased and the associated capital charges, broken down between
exposures and further broken down into differentrisk weight bands for
each regulatory capital approach

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).

74

Nil

Quantitative Disclosures : Trading Book

SL
No

(Amount Rs in Crores)

(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;

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.

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).

75

Nil

h bB - 8
V VJ : V VJ vi |E]Eh
31.03.2010 E lli

MhiE |E]Eh
(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

665.94

1.1

V n VJ

1.2

<C] li VJ

26.82

1.3

n x VJ

403.73

235.39

76

Table DF 8
MARKET RISK IN TRADING BOOK
Position as on 31.03.2010

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.
5. 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 Rs in Crores)

The total capital requirements for Market Risk

665.94

1.1 Interest rate risk

235.39

1.2 Equity position risk

26.82

1.3 Foreign exchange risk

403.73

77

h bB - 9
{SxMi VJ : x |E]Eh

31.03.2010 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>
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 31.03.2010 E {SxMi VJ i {V +{I .486.40
Ec *

78

Table DF 9
OPERATIONAL RISK
Position as on 31.03.2010

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 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.

SL

Quantitative Disclosures

No.
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 31.03.2010
is Rs. 486.40 Crores.

79

h bB - 10
EM E V n VJ (+<++)

31.03.2010 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 { i x
2.00%

( . Ec )
VJ { +M
86.45

+lE {ix
3.32%

80

Table DF 10
INTEREST RATE RISK IN THE BANKING BOOK (IRRBB)
Position as on 31.03.2010

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).

SL
No
1.
2.

Quantitative Disclosures

(Amount Rs in Crores)

Change in Interest Rate

Earning at Risk

1.00%

86.45

Change in Interest Rate

Change in Economic Value

2.00%

3.32%

81

REPORT ON CORPORATE GOVERNANCE

Eh{tu] Mxx { {]
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 *
n E Exx fS il xiE E ri E +vx
vE E x xB Jx*
+{x OE E k |nx Ex*
+{x OE il ES, xE + V E +x iE
E B BE J B l li i Ex*

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 .

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. xnE b

2.

Board of Directors

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 *

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:-

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

(E) xxJi |iE E BE |ixv :

i)
i E
ii) EM (rVUtntt v= rhU ni)
iii) +vE ES

(a) A representative each of

(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 (rVUtntt YfU v= rhU ni)

(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

(P) i E u xH xn JE xnE
(rVUtntt v= rhU ni)
(R) ix +EE M-E xnE

d) One Chartered Accountants Director appointed by

Government of India. (Presently lying vacant)

c)

i)

Government of India (GOI)

ii)

Workmen (Presently lying vacant)

iii)

Officers Employees

Three Independent Shareholders Directors (One post

presently lying vacant)

e) Three part-time Non-Official Directors

2.2 Committees of Board

2.2. b E i
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: -

82

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

{nx

Name

Designation

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)

Share Transfer Committee (STC)

Remuneration Committee (Remu. Comm)

Nomination Committee ( Nom. Com)

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-.2010 was as under:

2.4 lli 31.03.2010 E xnE b E P]x xxi :

x

xH E il

+x b i
E ni

+x b<C]{
E .

Date of

Membership

No of other

of other Board

Directorship(s)

appointment

& Committees
1.
2.
3.
4.
5.

V.{. n+

+vI B |v xnE

Shri J.P. Dua

Chairman & Managing Director

b. E

E{E xnE

Shri D. Sarkar

Executive Director

B. +. xE

E{E xnE

Shri M.R. Nayak

Executive Director

n i

E u xi xnE

Shri Mohammad Tahir

RBI Nominee Director

i Ei J

E u xi xnE

Smt. Sukriti Likhi

Government Nominee Director

6.

En{ E bM

+vE ES xnE

Shri Kuldeep Kumar Dogra

Officers Nominee Director

7.

i VMxn E

+EE M-E xnE

Smt Joginder Kaur

Part Time Non Official Director

{. . Mbd

+EE M-E xnE

Shri P.V.Gudireddy

Part Time Non Official Director

b. E-=W-Wx +

+EE M-E xnE

8.
9.

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

10.

n E E{

07-12-2009

22-01-2010

27-02-2007

10-06-2008

19-12-2007

14-02-2008

28-04-2008

08-05-2008

30-06-2008

10

12-06-2009

vE xnE

Shri Deveshwar Kumar Kapila Shareholders Director

11.

04-12-2009*

b. xi EVM

vE xnE

Dr. Vasant Baburao Kaujalgi

Shareholders Director

V.{. n+ 07.11.2007 03.12.2009 iE E E E{E xnE l

* Shri J.P. Dua was the Executive Director of the Bank from 07-11-2007 to 03-12-2009

83

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

Note:
(i)

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

than 10 committees or acts as Chairman of more than
five committees across all companies in which he is a
director.

E< xnE BE n E in x *
(iii) B.E. {j vE(Exp E z) E |ixvi
Ex xnE E { xSi B l + =xx
30.06.2008 {n vh E* n, +tME B k
{xxh +{ |vEh, k j, i E E
{ xH E { {j 26.06.2009 E E
xnE E { x *
2.5 k 2009-10 E nx E E b xH/
xSi E E Oh Ex xnE E {S
xxx :

(ii)

None of the Directors are relative of each other

2.5.1 V.{. n+, +vI B |v xnE

V.{. n+ x 04.12.2009 E E +vI B E{E
xnE E {n Oh E* +{x ix xH { n+
07.11.2007 < E E E{E xnE l*

2.5.1 Shri J.P. Dua, Chairman & Managing Director

Shri J.P. Dua assumed the office of the Chairman & Managing
Director of the Bank with effect from 04-12-2009. Prior to his
present appointment Shri Dua was the Executive Director of
the Bank since 07-11-2007.

n+ x +{x EM E 1978 +B] E + E

|vE E { E Oh E E* n+ BE
ylwCJe E + EM =tM MM E Ijt =xE
+x * J+ i{h {n { + =xx Ij
|vE E { E E* +B] E + E +{x
EE E nx n+ x E{] + z M E
E|J E { E E Vx +i] EM |M,
xIh + xjh M E +iH E{] Gb]
* +B] E + E |vE(E{] Gb]) E {
+{x EE E nx =xx +xE x< { E V BxV,
Gb] |M , ] Gb] + E{] JB, V
@h M E ii i nn *

Shri Dua started his Banking career by joining Oriental Bank

of Commerce as Manager in October 1978. Shri Dua is an
experienced Banker and has exposure to almost all the
functions in Banking Industry. He has held important positions
in branches and also worked as Regional Manager. Mr. Dua,
during his career in Oriental Bank of Commerce has exposure
as functional head of various departments at corporate office
including International Banking Division, Inspection and control
department besides corporate credit.
During his tenure as General Manager (Corporate Credit) in
Oriental Bank of Commerce, many new initiatives such as NBG,
Credit Processing Cell, Retail Credit hubs and corporate
Branches were taken up, which helped faster expansion of
credit portfolio.

n+ x Gb] Bbx]x, BS+b +n Ei |Ih

|{i E * +i] |Ih 1991 MEM
B+<+B, 1997 BV/x E EM EG,
xE Gb] xV] V EU |Ih EG =Jx *
BE VxJ E Vx og |xE + xii E
<E l k {h |{i Ex i +{x ] E B
BE M |E *
2.5.2 ni E
ni E x nxE 07.12.2009 E E E E{E
xnE E { E Oh E* ix xH {
E E + cn E E{] E < |vE
(lE EM/@h) l*
E xn JE + =xE 27 E EM E
+x * E x +{x EM E 22.07.1982 E E
+ cn + E* E + cn +{x EE E
n x =xx J+, Ij E, b E + E{] /
|vx E z i E E* MM 4 iE
{] < E E {Sx E +iE J{I M
E | l* MM 7 iE Ei BEEi ]V J,
< E | *

Shri Dua got specialized training in credit administration, HRD

etc. The international training include SIBOS in 1991 at Hong
Kong, International Banking Programme in 1997 at Los
Angeles/ San Fransisco, credit management in New York, to
mention a few. He is a market oriented Banker with strong
administrative and leadership skills and able motivator of his
team to bring about best results.

(ii)

(iii) Shri A K. Mohapatra was elected as Director representing

shareholders (other than Central Government) and
assumed office with effect from 30-06-2008. Consequent
upon his appointment as Member, Appellate Authority for
Industrial & Financial Reconstruction (A.A.I.F.R), Ministry
of Finance, Govt. of India Shri Mohapatra has ceased to
be the director of the Bank with effect from 26.6.2009.
2.5 The profile of the directors who were appointed/ elected
on the Board of the Bank and assumed office during the
financial year 2009-10 is furnished hereunder:

2.5.2 Shri Debabrata Sarkar, Executive Director

Shri Sarkar has assumed the office of Executive Director of
the Bank on 07-12-2009. Prior to his present appointment Shri
Sarkar was the General Manager(Wholesale Banking/ Credit)
of the Bank of Baroda at corporate office Mumbai.
Shri Sarkar is a Chartered Accountant and is having 27 years
of Banking experience. Shri Sarkar started his Banking career
by joining Bank of Baroda on 22-07-1982. Shri Sarker during
his career in Bank of Baroda, had worked in various capacities
in Branches, Regional Office, Zonal Office and Corporate/ Head
Office. He was in charge of Internal Audit department of Banks
Mauritius Operations at Port Louis for about 4 years. He was
in-charge of Specialized Integrated Treasury Branch, Mumbai
for about 7 years.

84

2.5.3 B.+. xE, E{E xnE

xE x nxE 22.01.2010 E E E E{E xnE E
{ E Oh E* +{x ix xH { xE
E{x E E |vx E |vE l*

2.5.3 Shri M.R. Nayak Executive Director

xE E 39 E EM +x * xE x +{x EM E
1971 E{x E E Oh E + E* xE
t hV xiE + i E lx (yc
Cth;eg crfUkd YJk rJt mk:tl) E BB] * =xx M <
+ n V i{h lx z {n { E E * =xx
n p vi J+ i +x J+ {Sx
E Si E * =xx E E ]V + +i ] EM M
E {Sx E Sx E + =xE EE ]V {Sx
E E E P + n ]V E l E BEEi E M*
=xx ]V x< { Ex, <C] V G Mi +
E |ii E G +n Exp E x< l*

Shri Nayak has 39 years of experience of banking. Shri Nayak

started his Banking career by joining Corporation Bank in 1971.
Shri Nayak is a commerce graduate from University of Mysore
and an Associate of Indian Institute of Bankers. (Now the Indian
Institute of Banking and Finance). He has worked in various
capacities in important locations such as Bangalore, Mumbai
and New Delhi. He handled branch operations including those
concentrated with foreign exchange business. He handled the
Treasury and international banking division of the Bank and
during his tenure the treasury operations were integrated into
one bringing together the domestic and forex treasuries of the
Bank. He had a pivotal role in taking up many new initiatives
in the treasury, active participation in equity market & retailing
in government securities, etc.

xE x E u h EM x +i M Ex J E
x< V i EM =tM { +* z b E
|J * E E E{] + +{x EE E nx =xx
@h xi + x]M, ] bM, |lEi Ij @h, BB<
Gb], EB +n E Si E*
xE x E E +i] EM E n {E
jB E * =x +xE {E xi E M V Sx
C +b, Vx +b + E{x E E x +b
*
2.5.4 b. xi EVM
b. xi EVM x 12.06.2009 E E xnE E
{n Oh E* BE ]CxG] + =xx +<+<] <
bC]] E bO E * =x +<+<] < {Sx
+xvx + E{] Yx {gx E 7 +vE E
+x * B+<+ i, b] = i +
+]VB BC{] i E n E { i V E
r * x 1995 +H 2001 iE i ]] E
E Exp b E xnE l + x 2005 +H 2008
iE E + <b E xnE l*
3. 01.04.2009 31.03.2010 E S +Vi b ` E
E h
3.1 ]Ei E (|vx B |Eh |vx) Vx 1970 E Jb
12 E +iMi xvi xxi 6 `E E {I Ivx +v
E n x xxH il E 12 b `E +Vi E M< l*

Shri Nayak was instrumental in introducing gold banking import

of bullion by the Bank, one of the first in banking industry in
India. He headed various Zones. During his tenure at the
Corporate office of the Bank, he has handled Credit Policy
and monitoring, Retail lending, Priority Sector Credit, SME
Credit, Bancassurance etc.

1
2
3
4
5
6
7
8
9
10
11
12

Shri Nayak has assumed the office of Executive Director of

the Bank on 22-01-2010. Prior to his present appointment Shri
Nayak was the General Manager of Corporation Bank, at Head
Office.

Shri Nayak has travelled widely with particular reference to

developing international banking business of the Bank. He has
won a number of awards including Chairmans club Award,
SOGian awards and the millennium award of Corporation Bank.
2.5.4 Dr. Vasant Baburao Kaujalgi, Shareholders' Director
Dr. Vasant Baburao Kaujalgi has assumed the office of director
of the Bank from 12-06-2009. He is a technocrat and holds
Doctorate degree from I.I.T. Bombay. He has more than 7 years
of experience of teaching at I.I.T. Bombay in operation research
and computer science. He has been associated with RBI as
member MICR Committee, Data Warehouse Committee and
RTGS expert Committee. He was Director, Central Board, in
State Bank of India from November, 1995 to October 2001
and also director of Bank of India from November 2005 to
October 2008.
3. Details of the Board meeting held between 01.04.2009
and 31.03.2010
3.1 During the period under review 12 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

XE E il

b xnE E J

={li xnE E J

Date of meeting

No. of Directors on Board

No. of Directors attended

20-04-2009
04-05-2009
15-06-2009
18-07-2009
02-09-2009
10-10-2009
22-10-2009
16-11-2009
29-12-2009
22-01-2010
24-02-2010
23-03-2010

13
13
14
13
12
11
10
09
10
10
11
11

10
12
11
11
10
08
08
08
09
09
11
11

85

3.2

`E ix B {U xnE E ={li E h / Details of the meetings attended by Present and Past Directors.
xnE
E x

S.N. Name
of Director
1

11

19

10

12

15

11

19

12

Shri Deveshwer Kumar Kapila 10

11

10

11

11

E. +. Ei
b. E
B.+. xE
E.E. +O

n i
i Ei J
E. E. bM
Shri K. K. Dogra

+E Vx

Shri Ashok Jain *

10

. Mi

Shri V Gurumurthy *
11
12

n E E{
i VMxn E
Smt. Joginder Kaur

13

{. . Mbd
Shri P.V.Gudireddy

14

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

15

. B. E. {j

Shri A K. Mohapatra *
16

Remu. Nom
Com. Com

Smt Sukriti Likhi

8

B vrhtr" x
]
mrb. .

V.{. n+

Shri Mohammad Tahir

7

STC

Shri K. K. Agarwal *
6

ACB RMC DPC SHIGC ITSC

B
B

CSC

Shri M.R. Nayak

5

+<
]

FMC

Shri D. Sarkar
4

+ b BBS
B
{
ytRo
V B

MCB

Shri K. R. Kamath *
3

BOARD

Shri J.P. Dua

2

b. xi EVM
Dr. Vasant Baburao Kaujalgi

*{U xnE

/ * Past directors

86

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 31.03.2010 E b E |vx i xxH n
l :1. V.{. n+
+vI B |v xnE

4.1.2 Composition of the Management Committee

2.
3.
4.
5.
6.

2.
3
4
5.

b. E
B.+ xE
n i
{.. Mbbb
b. E =W-Vx-+

7. n E E{

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 31-03-2010 were:
1. Shri J.P. Dua

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

Shri D. Sarka
Shri M.R. Nayak
Shri Mohammad Tahir
Shri P.V. Gudireddy

6. Dr. Shakeel-UzZaman Ansari

7. Shri Deveshwar
Kr. Kapila

vE xnE

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

Vi *
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 *

Chairman & Managing

Director
Executive Director
Executive Director
RBI Nominee Director
Part Time Non
Official Director
Part Time Non
Official Director
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 proposal, 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,
non-performing assets and other important management
decisions referred to the Committee by the Board.

4.1.4
Details of the meeting of the Committee
4.1.4 ` E E h
01.04.2009 31.03.2010 E n x xxJi il E |vx The Committee met 20 times during the period 01.04.2009 to
31.03.2010 as detailed below
i x 20 ` E +Vi E:
XE E il
b E |vx i E xnE E .
={li xnE E .
Date of Meeting
24-04-2009
04-05-2009
03-06-2009
23-06-2009
18-07-2009
04-08-2009
03-09-2009
22-09-2009
10-10-2009
22-10-2009
16-11-2009
07-12-2009
18-12-2009
29-12-2009
12-01-2010
22-01-2010
08-02-2010
24-02-2010
10-03-2010
23-03-2010

No. of Directors on the Management

Committee of Board
8
8
8
8
8
7
7
7
6
6
5
5
6
6
6
6
7
7
7
7

87

No. of Directors attended

6
7
7
8
7
5
6
7
6
6
5
5
4
6
6
6
7
7
7
7

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

i W E E nxn il E{] 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

Audit Committee of the Board (ACB)

4.2.2 J{I i E P]x :

lli 31.03.2010 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. n i
5. n E E{

4. Shri Mohammad Tahir

5. Shri Deveshwar
Kumar Kapila

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
31-03-2010 were;
1. Shri D. Sarkar
2. Shri M.R. Nayak
3. Smt. Sukriti Likhi

E u xi xnE
vE xnE

Executive Director
Executive Director
Government Nominee
Director
RBI Nominee Director
Shareholders Director

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

u E M<*

The committee is chaired by Shri 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 The Audit Committee provides direction and oversees the
il +iE J{I + xIh E Mhk xjh i E operations of total audit function of the Bank including the
E i J{I E E {Sx E {Ih Ei il E organization, operation and quality control of internal audit and
inspection within the Bank and follow up on the Statutory/
E vE/ J{I B E E xIh { +xi E< External audit of the Bank and RBI inspections.
Ei *
i +iE xjh |h E {{ii, +iE J{I M The Committee also reviews the adequacy of internal control
E S x, <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
any significant finding and follow-up action thereon. It further
=x { +xi E< Ei * <E +iH E E k on
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 Regarding Statutory Audit, the Audit Committee interacts with
J + {] E +i { nx { Exp vE J{IE the Central Statutory Auditors before finalization of Annual/
Quarterly Financial Accounts and Reports. It also follows up
E l S- Ei * M J{I {] on various issues raised in the Long Form Audit Report (LFAR).
(BBB+) {] =`B MB z q { +xi E<
Ei *
4.2.4 ` E E h 4.2.4 Details of Meeting
01.04.2009 31.03.2010 E n x xxJi il E b During the period 01.04.2009 to 31.03.2010, 8 meetings of
the Audit committee of the Board were held as detailed below.
E J{I i E 8 ` E +Vi E M<:
XE E il
b E |vx i E xnE E .
={li xnE E .
Date of Meeting

No. of Directors on the

Audited Committee of Board

No. of Directors attended

13-04-2009
04-05-2009
18-07-2009
28-07-2009
29-09-2009
22-10-2009
12-01-2010
22-01-2010

6
6
6
6
5
4
4
4

5
5
5
6
4
3
3
3

88

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 *

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 from time to time.

4.3.2 b E VJ |vx i E P]x :

4.3.2

lli 31.03.2010 E i xxH n l :1. V.{. n+

+vI B |v xnE

The members of the Committee as on 31.03.2010 were

1. Shri J.P. Dua

Chairman & Managing

Director

2.
3.
4.
5.

2. Shri D. Sarkar

Executive Director

3. Shri M. R. Nayak

Executive Director

b. E
B.+. xE
n i
i VMxn E

6. {. . Mbd
7. b. xi EVM

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

Composition of the Risk from Management

Committee of the Board:

4. Shri Mohammad Tahir

RBI Nominee Director

5. Smt. Joginder Kaur

Part Time Non Official

Director

6. Shri P.V. Gudireddy

Part Time Non Official

Director

7. Dr. Vasant Baburao

Kaujalgi

Shareholders Director

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

Vi *
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 01.04.2009 31.03.2010 E nx VJ |vx i E 4

` E +Vi < VxE h xxEi -

4.3.4

` E E il

23-06-2009

b E VJ
|vx i E
xnE E .
8

4.3.3 Function of Risk Management Committee of the

Board

Details of the Meeting

The Committee met 4 times during the period 01-04-2009 to

31-03-2010 as detailed below.

Date of Meeting

={li xnE
E .

No. of Directors
No. of Directors
on the Risk Manageattended
ment Committee
of Board.

23-06-2009

03-09-2009

03-09-2009

29-12-2009

29-12-2009

24-02-2010

24-02-2010

4.4 xnE {nzi i (b{) :

4.4. Directors Promotion Committee (DPC)

4.4.1 b E xnE {nzi i:

4.4.1 Directors promotion committee of the Board:

E x i E, k j (EM |M)E xn E +xh

xnE {nzi i E M`x E + < - {
{xM` i E M *

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.

89

4.4.2 xnE E {nzi i E P]x :

4.4.2 Composition of the Directors Promotion

Committee:

lli 31.03.2010 E xnE E {nzi i xxH

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

The members of the Committee of Directors as on 31-03-2010

were

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

Vi *

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

Managing Director

4.4.3 xnE E {nzi i E E :

xnE E {nz i i E M`x iEi B M- iEi +xxE
E x{]x E I Ex B E{] 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 *
4.4.4 ` E E h01.04.2009 31.03.2010 E nx xxH il E i
x 5 ` E +Vi E rslfUt rJJhK rlltkrfU; nuui-

4.4.3 Function of the Directors Promotion Committee:

`E E il

xnE {nzi
i E xnE
E .

={li xnE
E .

23-06-2009

02-09-2009

15-09-2009

29-12-2009

23-03-2010

1. Shri J.P. Dua,

Chairman & Managing

Director

2. Smt Sukriti Likhi

Govt. Nominee Director

3. Shri Mohammad Tahir

RBI Nominee Director

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 Details of the Meeting
The Committee held 5 meetings during the period 01.04.2009
to 31.03.2010 as detailed below:
Date of Meeting

No. of Directors
on the Directors
Promotion
Committee

No. of Directors
attended

23-06-2009

02-09-2009

15-09-2009

29-12-2009

23-03-2010

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 from time to time.

4.5.2

vE/xE E Ei i
E P]x :
31.03.2010 E lli i E xxH n l :

4.5.2 Composition of the Shareholders/ Investors

Grievances Committee

1. b. E
2. B.+. xE
3. {.. Mbbb

E{E xnE
E{E xnE
+EE M E xnE

1. Shri D. Sarkar

Executive Director

2. Shri M.R. Nayak

Executive Director

3. Shri P.V. Gudireddy

Part Time Non Official

Director

4. b. E-=W- Wx
-+
5. n E E{

+EE M E xnE

4. Dr. Shakeel-Uz-Zaman
Ansari

Part Time Non Official

Director

vE xnE

5. Shri Deveshwar Kumar

Shareholders Director

The members of the Committee as on 31-03-2010 were as

under:

Kapila

90

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

E Vi B. . ^S, |vE, (k B J) E E
E +x{x +vE E { xq] E M *

The Committee is chaired by Shri Deveshwar Kumar Kapila,

Shareholders Director, Shri A.B.Bhattacharjee, General
Manager; Finance & Accounts 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 1809 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 1809 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

01.04.2009 31.03.2010 E nx i x 2 ` E +Vi

E*

The Committee held 2 meetings during the period 01.04.2009

to 31.03.2010 as detailed below:

`E E il

vE/xE E
Ei i E
xnE E .

Date of Meeting

={li xnE
E .

03-09-2009

10-03-2010

No. of Directors

No. of Directors

on the Shareholders

attended

/ Investors Grievance
Committee
03-09-2009

10-03-2010

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

4.6 Information Technology Sub-Committee

(IT Sub-Committee)

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*

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 :

4.6.2 Composition of the IT Sub-Committee of the

Board:

lli 31.03.2010 E i xxH n l :1. V.{. n+

+vI B |v xnE

The members of the Committee as on 31-03-2010 were:

1. Shri J.P. Dua

Chairman & Managing

Director

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

2. Shri D. Sarkar

Executive Director

3. Shri M. R. Nayak

Executive Director

4. Smt. Sukriti Likhi

Government Nominee
Director

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

5. Shri Deveshwar Kr Kapila

Shareholders Director

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

E Vi *

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

Managing Director.

4.6.3 b E +<] i E E
i E M`x E E z +<] {Vx+ E Exx E
xMx i E M *

4.6.3 Function of the IT Committee:

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

6. Dr. Vasant Baburao Kaujalgi Shareholders Director

This Committee was constituted to monitor the implementation

of various IT projects of the Bank.

91

4.6.4 Details of the Meeting

4.6.4 `E E h 01.04.2009 31.03.2010 E n x i E 7 `E xxJi

il E +Vi < rslfUt rJJhK rlltkrfU; nuui`E E il
ctuzo fUe ytRoxe Wv ={li xnE
i E xnE
E .
E .

This Committee held 7 meetings during the period 01.04.2009

to 31.03.2010 as detailed below:
Date of Meeting

No. of Directors
No. of Directors
on the IT Sub
attended
-Committee of Board

20-04-2009
02-09-2009

6
5

4
4

20-04-2009

02-09-2009

07-12-2009

07-12-2009

12-01-2010

12-01-2010

08-02-2010

08-02-2010

10-03-2010

10-03-2010

31-03-2010

31-03-2010

4.7 vJvc xMx i

4.7. Fraud Monitoring Committee

4.7.1 b E vJvc xMx i

4.7.1 Fraud Monitoring Committee of the Board:

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
*
4.7.2 b E vJvc xMx i E P]x

The Bank has constituted Fraud Monitoring Committee on

28.02.2004 and reconstituted from time to time with a purpose
to monitor and follow up cases of frauds involving amount of
Rupees One crore and above.

lli 31.03.2010 E i xxH n l :1. V.{. n+

+vI B |v xnE

The members of the Committee as on 31-03-2010 were :

2. E.E. bM
3. n E E{

2. Shri K.K. Dogra

3. Shri Deveshwar
Kumar Kapila

4.7.2

Composition of the Fraud Monitoring Committee

of the Board:

1. Shri J.P. Dua

+vE xi xnE
vE xnE

Chairman & Managing

Director
Officers Nominee Director
Shareholders Director.

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

Vi *
4.7.3 vJvc xMx i E E

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

Managing Director.

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*

The Fraud Monitoring Committee has been constituted

exclusively for monitoring, review and follow 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

4.7.4 Details of the Meeting

01.04.2009 31.03.2010 E n x vJvc xMx i E

3 ` E xxx +Vi E M< rslfUt rJJhK rlltkrfU; n*

The Fraud Monitoring Committee held 3 meetings during the

period 01.04.2009 to 31.03.2010 as detailed below

`E E il

b E vJvc
xMx i E
xnE E .

4.7.3 Function of the Fraud Monitoring Committee

Date of meeting

={li xnE
E .

No. of Directors on No. of Directors

the Fraud Monitoring
attended
Committee of Board

22-09-2009

22-09-2009

24-02-2010

24-02-2010

23-03-2010

23-03-2010

92

4.8 Customer Service Committee

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 * + - {
{xM`i E M * i E M`x < =q E M
iE ii +v { OE E Mhk v V E*

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
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.

4.8.2 OE i E P]x

4.8.2 Composition of Customer Service Committee:

31.03.2010 E OE i xxJi xnE l*

The Customer Service Committee comprises the following

Directors as on 31-03-2010.

1. V.{. n+

1. Shri J P Dua

2.
3.
4.
5.
6.

+vI B |v xnE

Chairman & Managing

Director
2. Shri D. Sarkar
Executive Director
3. Shri M.R. Nayak
Executive Director
4. Shri Mohammad Tahir
RBI Nominee Director
5. Shri K K Dogra
Officers Nominee Director
6. Dr. Shakeel-Uz-Zaman
Part Time Non Official
Ansari
Director
The Committee is chaired by Shri J.P. Dua, Chairman &
Managing Director.

b. E
B.+. xE
n i
E. E. bM
b. E-=W-Wx +

E{E xnE
E{E xnE
E u xi xnE
+vE xi xnE
+EE M E
xnE
i E +vIi V.{. n+, +vI B |v xnE u E
Vi *
4.8.3 OE i E E:
|E E OE E OE i] i v Ex
+ OE E Mhk E gx i xx ={ Ex*

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.

4.8.4 ` E E h
01.04.2009 31.03.2010 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 .

This Committee held 4 meetings during the period 01.04.2009

to 31.03.2010 as detailed below

={li xnE
E .

15-06-2009
03-09-2009
29-12-2009

7
6
5

6
6
5

24-02-2010

No. of Directors on
Customer Service
Committee

No. of Directors
attended

15-06-2009
03-09-2009

7
6

6
6

29-12-2009

24-02-2010

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 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 to 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*

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.

93

4.9.2. {v i E M`x lli

4.9.2 Composition of Remuneration Committee

31.03.2010 E lli i E P]x xxx l :

The Composition of the Committee as on 31-03-2010 is as

under:

1. i Ei J
2. n i
3. i VMxn E

1. Smt Sukriti Likhi

Govt. Nominee Director

2. Shri Mohammad Tahir

3. Smt. Joginder Kaur

RBI Nominee Director

Part time Non Official

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

Director

BE n E {n H *
i E +vIi i Ei J, E u xi xnE
u E Vi *
4.9.3. {v mrbr; E fUtgo
Ex{nx kr |ix E |Vxl vqKofUtrtfU rl=uNfUt
fuU fUtgorlvt=l E bqgtkfUl fUhlt>
4.10.4. ciXfU fUt rJJhK

One member position is lying vacant

01.04.2009 mu 31.03.2010 ;fU mrbr; fUe 1 ciXfU nwRko-

The Committee held one meeting during the period 01.04.2009

to 31.03.2010

`E E il

Date of meeting

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

ctuzo fUe vrhtr" i E ={li xnE

xnE E .
E .

23-06-2009

No. of Directors on No. of Directors

the Remuneration
attended
Committee of Board

23-06-2009

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

4.10.2 xEx i E M`x

4.10.2 Composition of Nomination Committee

31.03.2010 E lli i E M`x xxx l :

The Composition of the Committee as on 31-03-2010 are as

under :

1. n i
2. i VMxn E

1. Shri Mohammad Tahir

RBI Nominee Director

2. Smt. Joginder Kaur

Part Time Non Official

Director

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

3. Dr. Shakeel Uz-Zaman

Part Time Non Official

4. {. . Mbd

4. Shri P.V. Gudireddy

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.

E u xi xnE
+EE M E xnE

Ansari

+EE M E xnE

The Committee is chaired by Shri Mohammad Tahir, RBI

Nominee Director

i E +vIi n i, ++< xi xnE

u E Vi *
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
01.04.2009 31.03.2010 E n x i E BE `E +Vi
E M<*
`E E il
03-06-2009

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 01.04.2009
to 31.03.2010
Date of meeting

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

Director
Part Time Non Official
Director

03-06-2009

94

No. of Directors on No. of Directors

the Nomination
attended
Committee of Board
4

4.11 +ih i

4.11 Share Transfer Committee

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

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.

31.03.2010 E lli i E M` x xxx l

The Composition of the Committee as on 31-03-2010 are as

under :

1. V.{. n+

+vI B |v xnE

1. Shri J P Dua

Chairman & Managing

Director

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

E{E xnE
E{E xnE
+vE xi xnE

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Shri K.K.. Dogra

Officers Nominee Director

4.11.2 Composition of Share Transfer Committee

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

Vi

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

Managing Director

4.11.3 +ih i E E

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 *

The Committee is empowered and authorized to approve

transfer, transmission, rejection, subdivision, consolidation of
the shares of the Bank and issue of duplicate share certificates
against lost 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 ` E E h:-

4.11.4 Details of the Meeting

i u +Vi ` E E h xxx :

The details of the meetings held by the committee are 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

03-04-2009

20-04-2009

04-05-2009

22-05-2009

30-06-2009

15-07-2009

30-07-2009

02-09-2009

22-09-2009

10-10-2009

22-10-2009

22-01-2010

08-02-2010

24-02-2010

08-03-2010

23-03-2010

95

+Mi, +Ci, x + n E nx +ih*

|h E +xv E b u +xbni E M*

* During the month of August, October, November and

December the Share Transfer/transmission request has also
been approved by the Board.

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 2009-10 E nx E E {hEE xnE +li
+vI B |v xnE B E{E xnE E Mix EB MB
ix E h xxx :

5.

G x

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
whole-time Directors of the Bank past and present, i.e
Chairman & Managing Director and Executive Director during
the year 2009-10 are as under:

Sl
Name
No.

Remuneration to the Directors:

M< k

|ix

Basic

DA Pay

Dearness
Allowance

Arrear

Incentives

Total

750292.90

55000.00

192235.08

522277.80

650000.00

2169805.78

195000.00

0.00

52650.00

0.00

0.00

247650.00

150967.74

0.00

40761.29

0.00

0.00

191729.03

0.00

113606.00

395434.63

716666.00

1768679.05

0.00

0.00

0.00

468808.40

200000.00

668808.40

0.00

0.00

0.00

136525.05

0.00

136525.05

190950.00

44000.00

44693.00

501063.60

650000.00

1430706.60

0.00

0.00

0.00

352680.89

0.00

352680.89

1830183.06

99000.00

443945.37

2376790.37 2216666.00

6966584.80

Vn xnE / Existing Directors

1.
V.{. n+ (+.|.x.)
Shri J.P. Dua ( CMD)
2.

b. E (E.x)
Shri D. Sarkar (ED)

3.

B.+. xE (E.x.)
Shri M. R. Nayak (ED)

i{ xnE
4.

/ Ex-Directors

E. +. Ei (.{ +.|.x.)
Shri K R Kamath (EX- CMD) 542972.42

5.

B.. Vx (.{ +.|.x.)

Shri A C Mahajan (EX-CMD)

6.

+.Bx. (.{ +.|.x.)

Shri O N Singh (EX CMD)

7.

E.E. +O,
(.{. E{E xnE)
Shri K K,Agarwal ( EX-ED)

8.

B.E. M
(.{. E{E xnE)
Shri S K Goel (Ex. ED)

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.

96

General Body Meetings:

`E E {
Nature of Meeting

`E E iJ
Date & Time

|Vx

lx

Purpose

Venue

{S E vh
`E

v 20 Vx 2007
{x 10.30 V

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

31.03.2007 E {i i E E
ix{j, -x J, J u E
E M< +v i E E GE{ E v
xnE b E {] il J B
ix {j { J{IE E {] { SS,
+xnx + +MEh il <C]
{ Pi Ex

Fifth Annual General

Meeting

Wednesday, 20th
June, 2007, 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
31-03-2007, Profit & Loss Account of the
Bank for the year ended 31st March,
2007, 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.

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
xnE b E {] il J B
ix {j { J{IE E {] { SS,
+xnx + +MEh il <C]
{ Pi Ex

Sixth Annual General

Meeting

Monday, 16th 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.

31.03.2009 E lli E E ix {j,

31 S 2009 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, EEk ]E BCSV
. E E <C] E SUE {
+Sr Ex + +EE H {
BE vE xnE E xSi Ex E
+xnx*

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 31-03-2009,
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.

97

6.2 EEk ]E BCSV . E E <C] E SUE

{ +Sr Ex E E{ i E vh `E
{i E M l*
vE E +xnx E +x 09.03.2010 E EEk
]E BCSV . E E <C] E SUE {
+Sr fUh r=gt dgt ni>

6.2 One Special Resolution for the Voluntary Delisting of equity

shares of the Bank from the Calcutta Stock Exchange Ltd.
was passed in the Seventh Annual General Meetings.

6.3 15.06.2009 E +Vi {U E vh ` E

xxJi xnE ={li l*

6.3 The following Directors were present in the last Annual

General Meeting held on 15-06-2009

E.+. Ei *

+vI B |v xnE

Shri K.R. Kamath*

Chairman & Managing

Director

E{E xnE
E{E xnE
E u xi xnE
E xi, . . xnE

Shri K.K.Agarwal*

Executive Director

Shri J. P. Dua

Executive Director

Shri Mohammad Tahir

RBI Nominee Director

Shri Ashok Jain*

Government Nominee C A
Director

E.E. +O *
V.{. n+
n i
+E Vx *

As per the Approval of the shareholders the equity

shares of the Bank has been voluntarily delisted from
the Calcutta Stock Exchange Ltd. with effect from
09-03-2010.

b. E-=W-Wx +

+EE M E rl=uNfU

Dr. Shakeel Uz-Zaman Ansari Part Time Non Official

Director

{. . Mbd

+EE M E rl=uNfU

Shri P V Gudireddy

Part Time Non Official

Director

vE xnE
vE xnE
+vE xi xnE
EM xi xnE

Shri Deveshwar Kumar Kapila

Shareholders Director.

Shri Ashok Kumar Mohapatra*

Shareholders Director.

Shri K.K. Dogra

Officers Nominee Director

Shri V. Gurumurthy*

Workmen Nominee Director

n E E{
+E E {j *
E. E. bM
. Mi *

{U xnE

* past directors

7. |E]Eh

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< *
2009-10 i E{] Mxx { vE Exp J{IE E |h{j < {] E l Mx *

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.

+vI B |v xnE il |vE (k B J) +li

]M E E Jb 49 l xvi J k +vE E {
k E E |J H |h{j |{i E M + b
E I |ii E M*

A Certificate from the Chairman and Managing Director and

General Manager (Finance & Accounts) i.e. the person heading
the finance function in his capacity as Chief Finance Officer
(CFO), as stipulated in Clause 49 of the Listing Agreement,
has been placed before the Board and is annexed to this
Annual Report.

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

Management discussion and analysis report forms a part of

the Directors Report .

7.1 M-+vniE +{IB

7.1 Non-Mandatory Requirements

M-+vniE +{I+ E Exx xxx

The extent of implementation of non-mandatory requirements

is furnished hereunder

A certificate of the Statutory Central Auditors on Corporate

Governance for the year 2009-10 is annexed to this report.

98

+{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 * 2009-2010 E n x i k {h <xx
BC| (+OV) +VE (M) i +Oh S{j
|Ei rfUY dY :u * { h E E E <]
www.allahabadbank.in { |ni E M*

8.

9. vE i vh Sx

9. General Shareholders Information:

9.1 +` E vh `E E h

9.1 Particulars of Eighth Annual General Meeting

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 2009-10, the
quarterly financial results were published in leading
newspapers Financial Express(English) and Aaj
Kaal(Bengali). The results are also displayed on the web site
of the Bank www.allahabadbank.in

nx + iJ

{i, 10 Vx, 2010

Day & Date

Thursday, 10th June,2010

{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 Calendar & Publication of Results (Tentative)

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

The Financial Year of the Bank is April to March

Approval of quarterly results for the period ending

30
30
31
31

June 30, 2010

End of July,2010

September 30,2010

End of October,2010

December 31, 2010

End of January, 2011

March 31, 2011

Audited Annual AccountsApril- May, 2011

Vx, 2010
i 2010
n 2010
S 2011

V<, 2010 E +i
+H, 2010 E +i
Vx 2011 E +i
J{Ii E J
yit- < 2011

9.3 E CV E iJ ( B BVB)

9.3 Date of Book Closure (Dividend & AGM)

E CV - x 15 <, 2010 {i 10 Vx 2010

(nx nx )

Book closure- Saturday 15th May, 2010 to Thursday, 10th

June, 2010 (Both days inclusive)

9.4 Mix E il: , 28 Vx 2010

9.4 Dividend Payment Date: Monday, 28th June, 2010.

99

9.5 ]M

9.5 Listing

9.5.1 ]E BCSV

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 2010-11 i E Sri E ={H ]E BCSV

E { |i E V SE *

The annual listing fee for the financial year 2010-11 has already
been remitted to the above Stock Exchanges.

*B< <C] E 09.03.2010 SU

+Sr E M *

* The equity shares of the Bank has been voluntarily

delisted from the Calcutta Stock Exchange Ltd. with effect
from 09-03-2010.

9.5.2 +x{x +vE

B.. ]]S, |vE(k B J) 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 *

9.5.2 Compliace Officer

9.5.3 +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 *

9.5.3 Share Transfer and Redressal of Investors Grievance

xE +{x +xv/Ei i V] E { +l E
xxLi {i { nV E Ei :

Shri A.B. Bhattacharjee General Manager (F&A) has been

designated as the Compliance Officer for complying with
various provisions of SEBI, other statutory authorities and
Listing Agreements with Stock Exchanges.

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.
The investors may lodge their requests/complaints either with
the Registrar or with the Bank at the following address:-

bu0 BB .
77/2B, V b,
EEi-700029
]: 033-24541893 / 033-24541892
C: 033-24541961, 24747674
<: 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
Email: investors.grievance@allahabadbank.in

100

9.6 Share Transfer System.

9.6 +ih |h
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 *

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.

9.7 vh E { (31.03.2010 E lli )

9.7 Shareholding Pattern (as on 31.03.2010)

vE E J

vi E J

<C] E

Description

No. of Holders

No. of shares held

% to equity

246700000

55.23

47530474

10.64

13

3260574

0.73

70

18230678

4.08

09

535063

0.12

107

58194109

13.03

1340

17716653

3.97

805

379505

0.08

Resident Individuals including Employee

174549

54152944

12.12

176895

446700000

100.00

i E
Government of India

Vx xM E{x
Life Insurance Company

+x E{x
Other Insurance Companies

i S+ b
Indian Mutual Funds

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
/ TOTAL

9.8 31.03.2010 E vi E ih
h

9.8 Distribution of shareholding as on 31-03-2010

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

29095523

155365

6.51

87.83

501 to 1000

11177471

15980

2.50

9.03

1001 to 2000

4946631

3460

1.11

1.96

2001 to 3000

2057822

843

0.46

0.48

3001 to 4000

1239567

349

0.28

0.20

4001 to 5000

842194

181

0.19

0.10

5001-10000

2204955

298

0.49

0.17

10001-50000

5078846

234

1.14

0.13

50001-100000

3926926

52

0.88

0.03

100001 and above

386130065

133

86.44

0.07

E / TOTAL

446700000

176895

100.00

100.00

101

9.9 E b]<Vx

9.9 Dematerialization of shares

{ i E E +x { b] ={v * E
E <C] +<B+<Bx Eb INE428A01015.
31.03.2010 E lli E E 427735329 ,
b]<V V <C] E 95.75% *
31.03.2010 E lli vE u b] + VE
J MB E h xxx *

The Banks shares are compulsorily traded in demat form. The

ISIN code of Banks Equity Shares is INE428A01015.

Particulars of shares in Demat and Physical form held by the

shareholders as on 31-03-2009 are as under:

vE E J

E J

No of shareholders

No. of shares

% of shareholding

59862

18964671

4.25

90465

173506343

38.84

246700000

55.23

26567

7528986

1.68

176895

446700000

100.00

VE / PHYSICAL
b] / DEMAT
BxBbB / NSDL
bBB / CDSL
Cth; mhfUth /
+x / Others

As on 31-03-2010, 427735329 shares constituting 95.75% of

the equity shares are in dematerialized form.

Govt. of India

E /TOTAL

vi E

9.10 +V E il E< Vb+/Bb+/] +x

Ex] <]] E x *

9.10 There are no outstanding GDRs /ADRs /Warrants or

any Convertible instruments as on date.

9.11 xx <C]xE CM ] (Bx<B)

9.11 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.

9.12 V b]/E E x{nx

9.12 Market Price Data/ Price performance of Banks

shares.

k 2009-10 E nx xx ]E BCSV (BxB<) +

]E BCSV (B<) ]bM EB MB E j +
E =SS B xx E]x E h xxi :

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 2009-10 were as
follows:

102

/ Month

BxB<
=SS

High
(Rs)
56.70
87.85
91.50
94.90
92.80
129.95
133.00
142.50
142.10
144.90
143.55
148.85

/ NSE

xx

Low
(Rs)
38.80
53.65
73.25
68.20
76.00
87.10
104.80
111.10
120.05
125.55
127.10
133.50

Volume (No)
( Total)
26826171
39475694
21644462
25323877
16403604
41646702
44208340
31061071
18464554
22903432
9044863
15988314

=SS

High
(Rs)
57.00
89.95
90.90
90.50
92.75
121.00
135.00
143.80
142.15
144.90
143.70
148.80

B<
xx

Low
(Rs)
38.70
53.60
73.30
68.10
78.60
87.00
104.40
111.05
121.25
125.60
126.55
134.05

/ BSE

Volume
(No)
7952344
10017380
4941217
5879687
3871087
11471640
9060063
6167291
3315031
4435903
1802350
3488883

+|
April 09
<
May 09
Vx
June 09
V<
July 09
+Mi Aug 09
i Sep 09
+H
Oct 09
x
Nov 09
n Dec 09
Vx
Jan 10

Feb 10
S
Mar 10
9.13 B Bb { BxBC x}] E ix E E E 9.13 Performance of Banks share in comparison
movement of S & P CNX Nifty is shown hereunder:
Ex{nx xxi :
nxE
BxB< E E E CVM
B Bb { BxBC x}]
Date
01-04-2009
04-05-2009
01-06-2009
01-07-2009
03-08-2009
01-09-2009
01-10-2009
03-11-2009
01-12-2009
04-01-2010
01-02-2010
31-03-2010

Closing Share Price of Bank at NSE (Rs)

39.65
56.90
90.00
78.10
89.50
87.90
114.15
112.25
135.10
128.45
141.55
142.85

with the

S & P CNX Nifty

3060.35
3654.00
4529.90
4340.90
4711.40
4625.35
5083.40
4563.90
5122.00
5232.20
4899.70
5249.10

9.14 +S i

9.14 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 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.
Declaration

Ph
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 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 *
xnE b E B B =xE +

The Board members and Senior Management have affirmed

compliance with the Code of Conduct.

nxE : 30-04-2010
lx: EEi

Date: 30-04-2010
Place: Kolkata

( V.{. n+)
+vI B |v xnE
103

For and on behalf of the Board of Directors

(J. P. Dua)
Chairman & Managing Director

J{IE E |h{j

Auditors Certificate

<n E E vE E B

To The Shareholders of Allahabad Bank

x ]E BCSV E l E E Sri E E Jb 49
lxvi E +x 31 S, 2010 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 *

We have examined the compliance of conditions of Corporate

Governance by Allahabad Bank, Kolkata for the year ended
on 31st March 2010, as stipulated in clause 49 of the Listing
Agreements of the Bank with Stock Exchange(s).

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.

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.

Ei .E] Bb M
xn JE
{VEh J 004597S

Ei . ni E {J Bb E.
xn JE
{VEh J 110512W

Ei . {.B. Bb BB]
xn JE
{VEh J 313085E

For M/S VENKAT & RANGAA

CHARTERED ACCOUNTANTS
Firm Regd. No. 004597S

For M/S SUDIT K PAREKH & CO.

CHARTERED ACCOUNTANTS
Firm Regd No 110512W

For M/S P.A. & ASSOCIATES

CHARTERED ACCOUNTANTS
Firm Regd. No. 313085E

(B. hJx)
vtxolh
ni . 26400

(Exi . V)
vtxolh
ni . 39461

({.B.{hb)
vtxolh
ni . 51092

( S Manisekaran)
Partner
Membership No 26400

( Srikant Jilla )
Partner
Membership No. 39461

( P. S. Panda)
Partner
Membership No. 51092

Ei . B.+. xh Bb E.
xn JE
{VEh J 002330S

Ei . B.P Bb E{x
xn JE
{VEh J 302184 E

Ei . E.B. +O Bb E
xn JE
{VEh J 853 N

For M/S M.R. NARAIN & CO.

CHARTERED ACCOUNTANTS
Firm Regd. No. 002330S

For M/S S. GHOSE & CO

CHARTERED ACCOUNTANTS
Firm Regd.No 302184 E

For M/S K M AGARWAL & Co

Chartered accountants
Firm CA Regd No 853 N

(B.Bx. E])
vtxolh
ni . 22993

(Snx S]]{v)
vtxolh
ni . 51254

( M. N. Venkatesan)
Partner
Membership No 22993

(Chandan Chattopodhay)
Partner
Membership No. 51254

104

(xI M{i)
vtxolh
ni . 92834
( Meenaksi Gupta)
Partner
Membership No.92834

< n E

ALLAHABAD BANK

31 S, 2010 fUtu g:tr:r; ix-{j

Balance Sheet as on 31st March, 2010

{V + niB

+xS

As on

As on

lli 31.03.2010
(. V )

lli 31.03.2009
(. V )

4,467,000

4,467,000

63,062,524

54,052,496

1,060,557,540

849,717,887

54,354,751

38,489,367

34,550,315

29,753,328

1,216,992,130

976,480,078

71,837,784

51,153,786

Money at Call and Short Notice

19,844,466

15,213,848

xvx / Investments
+O / Advances
l +i / Fixed Assets
+x +i / Other Assets
E / Total:
+EE niB / Contingent Liabilities
Oh E B / Bills for Collection

384,286,239

296,510,497

716,048,718

588,017,634

10

11,182,746

11,097,519

11

13,792,177

14,486,794

1,216,992,130

976,480,078

490,807,906

468,597,298

29,443,736

17,265,336

CAPITAL & LIABILITIES

SCHEDULE

(Rs. in thousand)

{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

(Rs. in thousand)

Cash and Balances with

Reserve Bank of India

E +i + M il +{ Sx { n vx
Balances with Banks and

12

xnE / Directors:
V. {. n+
eb;e mwf]Ur; rtF / SMT. SUKRITI LIKHI
+vI B |v xnE
e nb= i / SHRI MOHAMMAD TAHIR
(J. P. DUA)
e fuU. fuU. ztudht / SHRI K. K. DOGRA
Chairman & Managing Director
b E E{ / SHRI DEVESHWER KUMAR KAPILA
ztp. . . EVtM / DR. VASANT BABURAO KAUJALGI
eb;e sturd=h fUtih / SMT. JOGINDER KAUR
e ve. Je dwrzhue / SHRI P. V. GUDIREDDY
ztp. E-=W-Wx + / DR. SHAKEEL-UZ-ZAMAN ANSARI

Ei bu. E] Bb M
xn JE

For M/S. Venkat & Rangaa

Chartered Accountants

b. E

B. +. xE

B. . ^S

B. B. Vx

E{E xnE

E{E xnE

(D. SARKAR)
Executive Director

(M. R. NAYAK)
Executive Director

|vE
(k B J)

E |vE
(k B J)

(A. B. BHATTACHARJEE)
General Manager
(Finance & Account)

(S. L. JAIN)
Assistant General Manager
(Finance & Account)

il E {] E +x
As per our report of even date

Ei bu. ni E {J Ykz E.
xn JE

Ei bu. { B Ykz BB]

xn JE

Ei bu. B. +. xh Ykz E.
xn JE

(B Exi V)
{]x
ni . 39461

(B { B {b)
{]x
ni . 51092

For M/S. Sudit K Parekh & Co.

Chartered Accountants

(B B hJx)
{]x
ni . 26400

(CA S. Manisekaran)
Partner
Membership No. 26400

(CA Srikant Jilla)

Partner
Membership No. 39461

For M/S. PA & Associates

Chartered Accountants

For M/S. M. R. Narain & Co.

Chartered Accountants

Ei bu. B. P Ykz E.
xn JE

For M/S. S. Ghosh. & Co.

Chartered Accountants

Ei bu. E. B. +O Ykz E.
xn JE

(B B Bx E]x)
{]x
ni . 22993

(B Sxnx S^{v)
{]x
ni . 51254

(B xGe M{i)
{]x
ni . 92834

(CA P S Panda)
Partner
Membership No. 51092

( CA M N Venkatesan)
Partner
Membership No. 22993

lx / Place : EEi/Kolkata
nxE / Date : 30.04.2010

105

(CA Chandan Chattopadhay)

Partner
Membership No. 51254

For M/S. K.M. Agarwal & Co.

Chartered Accountants

(CA Meenakshi Gupta)

Partner
Membership No. 92834

< n E

ALLAHABAD BANK
31 S, 2010 E {i i YJk x J
Profit and Loss Account for the year ended 31st March, 2010

+xS

SCHEDULE

h / Particular
I

II

III
IV

{i

/ Year ended
31.03.2010

{i

(. V )

/ Year ended
31.03.2009

(. V )

(Rs. in thousand)

(Rs. in thousand)

83,692,002
15,159,023
98,851,025

73,647,279
11,419,242
85,066,521

57,187,209
16,178,316
13,422,229
86,787,754
12,063,271
960,926
13,024,197

52,060,613
13,994,384
11,325,543
77,380,540
7,685,981
998,746
8,684,727

3,050,000

1,930,000

5,500,000
97,821

2,100,285
2,286,974

250,000

100,000

Nil
2,456,850
417,542
1,251,984
13,024,197

Nil
1,116,750
189,792
960,926
8,684,727

27.01

17.21

+ / INCOME
+Vi V / Interest earned
13
+x + / Other income
14
E / Total :
/ EXPENDITURE
E M V / Interest expended
15
{Sx / Operating expenses
16
|vx + +EE / Provisions & contingencies
E / Total :
x / Net Profit
+Oxi / Balance brought forward
E / Total :
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)

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 to Balance Sheet
E / Total :
bnJvqKo tuFt ler;gt/ Significant Accounting Policies 17
J { ]{{h / Notes on Accounts
18
r; Nugh ysol (.) / Earnigs per share (Rs.)

Wvh mk=rCo; ylwmqragt Fu fUt yrCl ykd ni

The schedules referred to above form an integral part of the accounts
xnE / Directors:
V. {. n+
eb;e mwf]Ur; rtF / SMT. SUKRITI LIKHI
+vI
B |v xnE
e nb= i / SHRI MOHAMMAD TAHIR
(J. P. DUA)
e fuU. fuU. ztudht / SHRI K. K. DOGRA
Chairman & Managing Director
b E E{ / SHRI DEVESHWER KUMAR KAPILA
ztp. . . EVtM / DR. VASANT BABURAO KAUJALGI
eb;e sturd=h fUtih / SMT. JOGINDER KAUR
e ve. Je dwrzhue / SHRI P. V. GUDIREDDY
ztp. E-=W-Wx + / DR. SHAKEEL-UZ-ZAMAN ANSARI

Ei bu. E] Bb M
xn JE

For M/S. Venkat & Rangaa

Chartered Accountants

b. E

B. +. xE

B. . ^S

B. B. Vx

E{E xnE

E{E xnE

(D. SARKAR)
Executive Director

(M. R. NAYAK)
Executive Director

|vE
(k B J)

E |vE
(k B J)

(A. B. BHATTACHARJEE)
General Manager
(Finance & Account)

(S. L. JAIN)
Assistant General Manager
(Finance & Account)

il E {] E +x
As per our report of even date

Ei bu. ni E {J Ykz E.
xn JE

Ei bu. { B Ykz BB]

xn JE

Ei bu. B. +. xh Ykz E.
xn JE

(B Exi V)
{]x
ni . 39461

(B { B {b)
{]x
ni . 51092

For M/S. Sudit K Parekh & Co.

Chartered Accountants

(B B hJx)
{]x
ni . 26400

(CA S. Manisekaran)
Partner
Membership No. 26400

(CA Srikant Jilla)

Partner
Membership No. 39461

For M/S. PA & Associates

Chartered Accountants

For M/S. M. R. Narain & Co.

Chartered Accountants

Ei bu. B. P Ykz E.
xn JE

For M/S. S. Ghosh. & Co.

Chartered Accountants

Ei bu. E. B. +O Ykz E.
xn JE

(B B Bx E]x)
{]x
ni . 22993

(B Sxnx S^{v)
{]x
ni . 51254

(B xGe M{i)
{]x
ni . 92834

(CA P S Panda)
Partner
Membership No. 51092

( CA M N Venkatesan)
Partner
Membership No. 22993

lx / Place : EEi/Kolkata
nxE / Date : 30.04.2010

106

(CA Chandan Chattopadhay)

Partner
Membership No. 51254

For M/S. K.M. Agarwal & Co.

Chartered Accountants

(CA Meenakshi Gupta)

Partner
Membership No. 92834

< n E

ALLAHABAD BANK

xEn | h-{j
Cash Flow Statement

h / Particulars

(. nsth )(Rs. in thousand)

2009-10

2008-09

{Sx Miv xEn |

Cash Flow from Operating Activities

E nx +O, xvx +n |{i V

Interest received during the year from advances,
Investments etc.

83,692,002

+x + / Other Income
P]B / Less:
E nx V { |nk V

15,112,202

Interest paid during the year on Deposit

73,647,279
98,804,204

-53,424,137

11,369,958

85,017,237

-48,855,948

|vx B +EEi+ i {Sx

Operating Expenses including
Provisions & Contingencies

-29,600,545

-83,024,682

-25,319,927 -74,175,875

626,962

563,187

16,406,484

11,404,549

Vc: / Add:
l +i {
Depreciation on Fixed Assets

{Sx Vi xEn
({SxMi +i + ni+ {ix {)
a.

Cash Profit generated from operations

(prior to changes in operating assets and liabilities)

b.

ni+ r / E :
Increase / Decrease in Liabilities :
V / Deposit

210,839,654

133,554,056

3,097,106

5,774,870

+x niB B |vx /
Other Liabilities & Provisions

213,936,760
c.

Decrease / Increase in Assets :

+O / Advances

xvx /Investments
+x +i / Other Assets
E. {SxMi Miv x xEn | (E+J+M)
A.

139,328,926

+i E / r :
-128,031,084

-90,812,973

-87,775,742

-62,507,997

694,617

Net Cash Flow from Operating activities (a+b+c)

-215,112,209

2,563,642 -150,757,328

15,231,035

-23,853

x Miv xEn |
Cash Flow from Investing Activities

l +i E G/x{]x
Sale/disposal of fixed assets

7,870

5,078

-720,060

-951,108

l +i E G /
Purchase of fixed assets

107

xEn | h-{j (V...) / Cash Flow Statement (Contd.)

h / Particulars
J x Miv x xEn |
B.

2009-10

2008-09
-712,190

Net Cash Flow from Investing Activities

-946,030

k{h Miv xEn |

Cash Flow form Financing activities

=v / Borrowings
=v { =t V /Interest Paid on Borrowings
(E i) / Dividends (including tax)
Nught fUt mtJosrlfU rldob / Public issue of Shares
] II b fUt rldob YJk curbgt=e }Ut
Issue of Tier II Bonds & Perpetual Debt

Mith @h E tuvx

/ Redemption of Sub Debt

k{h Miv Vi x xEn

C.

Net cash generated from Financing Activities

4,865,384

-8,549,620

-3,763,072

-3,204,665

-1,306,542

-1,829,159

NIL

NIL

11,000,000

10,500,000

NIL

NIL
10,795,770

-3,083,444

25,314,615

-4,053,327

E nx E xEn | (fU+F+d)
Total Cash Flow during the year (A+B+C)

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

51,153,786

62,888,552

Balances with Banks and Money at Call and Short Notice

15,213,849

7,532,410

E / Total
R E +i xEn + xEn i

66,367,635

70,420,962

71,837,784

51,153,786

Balances with Banks and Money at Call and Short Notice

19,844,466

15,213,849

E /Total

91,682,250

66,367,635

E +i + bM il +{ Sx { n vx

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

E nx E xEn | (R-P) /
Total Cash Flow during the year (E-D)
V. {. =q+
+vI B |v xnE
(J. P. DUA)
Chairman & Managing Director

25,314,615

b. E

B. +. xE

E{E xnE

E{E xnE

(D. SARKAR)
Executive Director

(M. R. NAYAK)
Executive Director

il E {] E +x
Ei bu. E] Bb M
xn JE

For M/S. Venkat & Rangaa

Chartered Accountants

(meY B hJx)
{]x
ni . 26400
(CA S. Manisekaran)
Partner
Membership No. 26400

Ei bu. ni E {J Bb E.
xn JE
For M/S. Sudit K Parekh & Co.
Chartered Accountants

(meY Exi . V)
{]x
ni . 39461
(CA Srikant Jilla)
Partner
Membership No. 39461

For M/S. PA & Associates

Chartered Accountants

(meY { B {b)
{]x
ni . 51092

-4,053,327

-4,053,327

B. . ^S
bntck"fU
rJt YJk tuFt

E |vE

(A. B. BHATTACHARJEE)
General Manager
(Finance & Account)

(S. L. JAIN)
Assistant General Manager
(Finance & Account)

As per our report of even date

Ei bu. { B Bb BB] Ei bu. B. +. xK Bb E.
xn JE
xn JE

B. B. sil
rJt YJk tuFt

Ei bu. B. P Bb E.
xn JE

Ei bu. E. B. +O Bb E.
xn JE

For M/S. M. R. Narain & Co.

Chartered Accountants

For M/S. S. Ghosh. & Co.

Chartered Accountants

(meY B Bx JfUxuNl)
{]x
ni . 22993

(meY Sxnx S^{v)

{]x
ni . 51254

(meY xG M{i)
{]x
ni . 92834

(CA P S Panda)
Partner
Membership No. 51092

( CA M N Venkatesan)
Partner
Membership No. 22993

lx : EEi
nxE : 30.04.2010
Place : Kolkata
Date : 30.04.2010

25,314,615

108

(CA Chandan Chattopadhay)

Partner
Membership No. 51254

For M/S. K.M. Agarwal & Co.

Chartered Accountants

(CA Meenakshi Gupta)

Partner
Membership No. 92834

+xS

SCHEDULE

lli

As on
31.03.2010

(. V )

(Rs. in thousand)

lli

As on
31.03.2009

(. V )

(Rs. in thousand)

+xS 1 - {V
SCHEDULE - 1 CAPITAL

|vEi {V / AUTHORISED CAPITAL

30,000,000

15,000,000

2,467,000

2,467,000

2,000,000

2,000,000

4,467,000

4,467,000

13,223,871

11,293,871

3,050,000

1,930,000

16,273,871

13,223,871

8,733,709

8,782,993

Nil

Nil

xMi, +nk YJk =t vqkse

ISSUED, SUBSCRIBED & PAID UP CAPITAL

fuU mhfUth tht "trh; gufU h. 10/- fuU 24,67,00,000 <C]

24,67,00,000 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.

vE |Ii

/ Statutory Reserves

+l / Opening Balance
ii) E nx {vx / Additions during the year
E / Total :
{V |Ii / Capital Reserves
A) {xEx |Ii / Revaluation Reserves
i) +l / Opening Balance
ii) E nx vrhJ"ol / Addition during the year
iii) E nx fUxtir; / Deduction during the year
iv) B x J +ih / Transfer to Profit & Loss Account
E / Total :
B) l +i /
i)

II.

Nil

Nil

(46,821)

(49,285)

8,686,888

8,733,708

103,251

103,251

Nil

Nil

Nil

Nil

103,251

103,251

3,311,632

1,024,657

97,821

2,286,975

3,409,453

3,311,632

12,199,592

12,148,591

Reserve out of sale of Fixed Assets

i)
ii)
iii)
C)
i)
ii)

+l / Opening Balance
E nx vrhJ"ol / Addition during the year
E nx fUxtir; / Deduction during the year
E /Total :
+x / Others
+l / Opening Balance
B x Ji +ih / Transfer from Profit & Loss Account
E / Total :
E / Total (A+B+C)
109

+xS

SCHEDULE

lli

As on
31.03.2010

(. V )

(Rs. in thousand)
III.
i)
ii)
iii)
IV.
i)
ii)

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 / Total

n p {ix |Ii / Foreign Currency Translation Reserve

+l / Opening Balance
ii) E nx {vx / Additon during the year
iii) E nx E]i/Vx / Deduction/Adj. during the year
E / Total:
VI. +< + B |Ii / I R S RESERVE
i) +l / Opening Balance
ii) E nx {vx / Additions during the year
iii) E nx E]i Vx / Deduction during the year
E / Total :
VII. | / Share Premium
i) +l / Opening Balance
ii) E nx vvx / Additions during the year
E / Total :
VIII. B x Ji / Balance in Profit & Loss Account

lli

As on
31.03.2009

(. V )

(Rs. in thousand)

19,532,478

17,432,193

5,500,000

2,100,285

Nil

Nil

25,032,478

19,532,478

900,000

800,000

250,000

100,000

1,150,000

900,000

5,765

26,913

Nil

11,200

(132,031)

(32,348)

(126,266)

5,765

80,865

80,865

V.
i)

/ Total :(I+II+III+IV+V+VI+VII+VIII)

110

Nil

Nil

Nil

Nil

80,865

80,865

7,200,000

7,200,000

Nil

Nil

7,200,000

7,200,000

1,251,984

960,926

63,062,524

54,052,496

+xS

SCHEDULE

lli

lli

As on
31.03.2010

As on
31.03.2009

(. V )

(. V )

(Rs. in thousand)

(Rs. in thousand)

+xS 3 - xI{
SCHEDULE - 3 DEPOSITS
I.
i)
ii)
II.
III.
i)
ii)

i)

M xI{ / Demand Deposits

E / From Banks
+x / From Others
E / Total :
Si E xI{ / Savings Bank Deposits
n xI{ /Term Deposits
E k / From Banks
+x / From Others
E / Total :
E / Total : (I+II+III)
i li J+ E xI{ /
Deposits of branches in India

ii)

571,433

1,082,601

82,584,031
83,155,464

65,149,020
66,231,621

282,711,836

227,743,903

9,129,294

10,563,107

685,560,946

545,179,256

694,690,240

555,742,363

1,060,557,540

849,717,887

1,057,736,587

848,103,370

2,820,953

1,614,517

1,060,557,540

849,717,887

i E li J+ E xI{ /
Deposits of branches outside India

E / Total :

+xS 4 - =v
SCHEDULE - 4 BORROWINGS
I.
i)
ii)
iii)
IV)
V)
VI)

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 Perpetual Debt Instrument.
Mh @h-+{ ] II {V / Subordinated Debt - Upper Tier II Capital
Mh @h-] II {V / Subordinated Debt - Tier II Capital
E / Total :

i E =v / Borrowings outside India

E / Total :(I+II)
={H I + II i |ii =v

II.

Secured borrowings included in I & II above

111

Nil

Nil

Nil

Nil

128,437

741,921

3,000,000

1,500,000

10,000,000

5,000,000

27,119,000

22,619,000

40,247,437

29,860,921

14,107,314

8,628,446

54,354,751

38,489,367

Nil

Nil

+xS

SCHEDULE

lli

As on
31.03.2010

(. V )

lli

As on
31.03.2009

(. V )

(Rs. in thousand)

(Rs. in thousand)

I. n

3,942,742

2,821,908

II. +i

1,853,914

2,047,534

4,107,615

3,241,705

239,214

128,655

24,406,829

21,513,526

34,550,314

29,753,328

3,798,799

3,598,070

68,038,984

47,555,716

+xS 5 - +x niB B |vx

SCHEDULE - 5 OTHER LIABILITIES AND PROVISIONS

/ Bills Payable
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 :

+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 / Balances with Reserve Bank of India
- S Ji / - in Current Account
- +x Ji / - in Other Accounts
E / Total :

Nil

Nil

71,837,783

51,153,786

+xS 7 - E +i + M il +{ Sx { n vx
SCHEDULE - 7 BALANCES WITH BANKS AND MONEY AT CALL AND 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 l+ / with Other Institutions
E / Total : ( i + ii )
II. i E / Outside 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 { =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)
I.

112

3,392,147

3,863,823

2,949,650

200,000

Nil

Nil

Nil

Nil

6,341,797

4,063,823

4,298,178

4,759,000

Nil

Nil

9,204,491

6,391,026

Nil

Nil

13,502,669

11,150,026

19,844,466

15,213,849

+xS

SCHEDULE

lli

As on
31.03.2010

(. V )

(Rs. in thousand)

lli

As on
31.03.2009

(. V )

(Rs. 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
v. +xM il/+l H ={G xvx
Investments in Subsidiaries and / or Joint Ventures
vi. +x (S+ b, ]+< +n) / Others ( Mutual Funds, UTI etc. )
E / Total :
II. E xvx / Gross Investments
+I i |vx E P]E / Less: Provision for Depreciation
x xvx / Net Investments
III. i E xvx / Investments Outside India
E / Total :(I+III)

309,829,425
1,382,736
4,690,410
16,242,940

213,832,542
2,931,273
2,539,737
22,499,941

1,172,204
50,968,524
384,286,239

876,205
53,830,799
296,510,497

386,804,276
2,518,037
384,286,239
NIL
384,286,239

300,813,539
4,303,042
296,510,497
NIL
296,510,497

21,841,484

18,319,011

298,053,178
396,154,056
716,048,718

242,985,154
326,713,469
588,017,634

575,987,521

458,386,177

17,057,949
123,003,248
716,048,718

19,095,088
110,536,369
588,017,634

242,793,500
91,478,586
Nil
373,320,079
707,592,165

204,350,201
68,314,454
2,078,114
308,405,593
583,148,362

3,736,156

Nil

680,390
3,342,096

435,935
Nil

697,911

4,433,337

8,456,553
716,048,718

4,869,272
588,017,634

+xS 9 - +O
SCHEDULE - 9 ADVANCES
A. i. G E MB B xB MB / Bills purchased and discounted
ii. xEn @h, +b}] + M { |in @h /
Cash credits, Overdrafts and loans repayable on demand
iii. n @h / Term Loans
E / Total :
B. i) i +i u |ii

( @h { +O i)

Secured by tangible assets

(includes advances against book debts)
ii)

E/E |ii u Ii
Covered by Bank/Government Guarantees

+|ii / Unsecured
E / Total :
I. i +O / Advances in India
i. |lEi Ij / Priority Sector
ii. VxE Ij / Public Sector
iii. E / Banks
iv. +x / Others
E / Total :
i +O / Advances outside India
iii)

C.

II.

a) cikfU
b) yg
i)
ii)
iii.

mu =ug / Due from Bank

mu =ug / Due from others

G EB MB B xB MB

/ Bills Purchased & Discounted

E @h / Syndicated Loan
yg / Others
E / Total :
E / Total :(CI+CII)
113

+xS

SCHEDULE

lli

As on
31.03.2010

(. V )

(Rs. in thousand)

lli

As on
31.03.2009

(. V )

(Rs. in thousand)

+xS 10 - l +i
SCHEDULE - 10 FIXED ASSETS
I.
i.

{ ({xEi { i)

/ Premises (including Revalued Premises)

vqJoJ;eo JMo fuU 31 S E li fuU ylwmth Mi/{xEi {

At cost / Revalued amount as on 31st March

9,968,693

9,798,010

Nil

Nil

14,521

170,683

9,983,214

9,968,693

Nil

Nil

9,983,214

9,968,693

255,242

230,034

9,727,972

9,738,659

394,800

347,979

9,333,172

9,390,680

5,808,033

5,027,792

705,538

785,318

6,513,571

5,813,110

7,870

5,078

6,505,701

5,808,032

4,656,127

4,101,193

1,849,574

1,706,839

11,182,746

11,097,519

of the preceding year

iii.

E nx {xEi / Revalued during the year

E nx {vx / Additions during the year

iv.

E nx E]i / Vx /

ii.

Deductions/ Adjustment during the year

v.

E il E

Depreciation to date on book value

vi.

II.

{xx il E / Depreciation to date on revaluation

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.

E nx {vx / Additions during the year

E nx E]i / Deductions during the year
il E / Depreciation to date
E / Total:
E / Total :(I+II)

114

+xS

SCHEDULE

lli

As on
31.03.2010

(. V )

(Rs. in thousand)

lli

As on
31.03.2009

(. V )

(Rs. in thousand)

+xS 11 - +x +i
SCHEDULE - 11 OTHER ASSETS
i.
ii.
iii.

+i E Vx (x) / Inter Office Adjustment (Net)

={S; gV / Interest Accrued
+O { nk E/i { E] M E (x)

Nil

Nil

4,923,149

4,683,078

2,361,894

3,166,645

82,787

86,545

323

323

6,424,024

6,550,203

13,792,177

14,486,794

9,372,748

9,723,572

1,600

1,600

370,658,925

368,889,046

i / - In India
(ii) i E / - Outside India
|iOh, {`Ex + +x viB

44,293,428

34,590,491

4,466,326

2,174,509

Acceptances, endorsements and other obligations

61,628,228

52,598,771

386,651

619,309

490,807,906

468,597,298

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;) / Others (Sundries and Suspense)

E / 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
(i)

V.

VI. +x

n VxE B E +EE { Vn

Other items for which the Bank is contingently liable

/ Total :

115

+xS

SCHEDULE

lli

As on
31.03.2010

(. V )

(Rs. in thousand)

lli

As on
31.03.2009

(. V )

(Rs. in thousand)

+xS 13 - +Vi V
SCHEDULE 13 - INTEREST EARNED
I)

+O/ { V/]] /

II)

x { + /

III)

i W E +i + +x +i E
xv { V

Interest/discount on advances / bills

Income on investments

Interest on balances with Reserve Bank of

India and other inter-bank funds
IV)

+x / Others
E / Total :

63,984,654

54,943,881

19,447,617

18,493,570

251,737

107,415

7,993

102,413

83,692,001

73,647,279

6,489,377

4,793,905

7,633,362

6,863,377

-1,867,904

-1,136,410

276

450

-5,883

-34

581,252

452,852

-96,427

-8,971

135,073

56,783

2,289,897

397,291

15,159,023

11,419,243

53,424,137

48,855,948

+xS 14 - +x +
SCHEDULE 14 - OTHER INCOME
I)

Ex, x + n /
Commission, exchange & brokerage

II)

x E G |{i

Profit on sale of investments

P]B: rlJuNtuk fuU vwlbqogl vh x

Less: Loss on Revaluation of Investment

III)

, x il +x +i E G {
Profit on Sale of Land, Building and Other Assets

P]B: Cqrb, CJl ;:t yg ytr;gt fuU rf{ g vh x

Less: Loss on sale of Land, Building and Other Assets
V)

x xnx {

Profit on exchange transactions

P]B: x xnx { x /
Less : Loss on exchange transaction
VI)

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.

VII)

v + / Miscellaneous Income
E / Total :

+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 :
116

397,333

642,833

3,365,739

2,561,832

57,187,209

52,060,613

+xS

SCHEDULE

lli

As on
31.03.2010

(. V )

lli

As on
31.03.2009

(. V )

(Rs. in thousand)

(Rs. in thousand)

10,113,792

8,739,384

1,765,438

1,359,285

207,640

190,474

216,379

142,287

626,962

563,187

+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)
VII)
VIII)
IX)
X)
XI)
XII)

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
J {IE E + / Auditors fees and expenses
(J J {IE i) / (including branch auditors)
v | / Law charges
bE, i, ]x +n / Postages,Telegrams,Telephones etc
i + +xIh / Repairs and maintenance
/ Insurance
+x / Other expenditure
E / Total :

117

9,838

10,290

161,429

143,488

69,022

84,900

236,265

227,799

243,667

245,325

789,081

753,113

1,738,803

1,534,852

16,178,316

13,994,384

+xS - 17

Schedule 17 - SIGNIFICANT ACCOUNTING POLICIES

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 + |ii E M *
(ii) k h i V E (..E) u + +Yx,
+i MEh, |vxEh il +x vi {
- { V EB MB Mn xn E +x{ *
2. n p v xnx :
2.1 i E J+/E i :
i)
n J+ E xx-<]O x +{x E { MEi
E M il =xE k h E xxx |ni E
M :
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 {*
l

Basis of Accounting:

(i)

The financial statements have been prepared and

presented 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.
2.

Transactions involving Foreign Exchange:

2.1 Branches / Offices outside India

(i)

Foreign Branches are classified as Non-integral Foreign

Operations and their financial statements are translated
as follows:
l

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.

V n b< u vi i E {i { +vSi
i +i +i n { {ii E Vi *

Revenue items are translated at the quarterly average

closing rate notified by FEDAI at the end of respective
quarter.

{h x +i E BE +M Ji n p ] x
W J Vi *

All resulting exchange difference is accumulated in a

separate account Foreign Currency Translation
Reserve.

(ii) n li |ixv E E {Sx E <]O x +{x

E { MEi E M il =xE k h E Mhx
xxx E Vi :
l pE +i B niB, M], Ei, {Ex il
+x |iriB b< E nxnx |iE i E +i
|Si {] x n { i { +E Vi *
l

1.

(ii) Operations of representative offices abroad are classified

as Integral Foreign Operations and their financial
statements are accounted for as follows:

M-pE n xnx E il { |Si x n { +E

Vi *
V n E Mhx xnx E il { |Si x n {
E Vi *
{h x +i E -x Ji M *

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.

All resulting exchange differences are accounted for

in Profit & Loss Account.

(iii)

+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.

2.2

i J+ i

2.2 Branches in India

(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*

(i)

118

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).

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.

(ii)

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.

(iii)

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 :

3.

Investments:
The investment portfolio of the Bank is classified in
accordance with RBI guidelines under three categories
viz. Held to Maturity, Available for Sale and Held for
Trading.

(i)

E E x M i V E E nxn E +x
ix |M l {{Ci iE vi, G i ={v il
{ i vi MEi E M *

(i)

(ii)

={H i ix |M EB MB x E |E]Eh E U
l (i) E |ii, (ii) +x +xni |ii,
(iii) , (iv) bS B b, (v) +xM l+/BB]/
H =t x il (vi) +x (hVE {j, S+ b
+n x]) MEi E Vi *

(ii) The disclosure of investments under all the three

categories mentioned above is made under six groups
viz. (a) Government securities (b) Other approved
securities (c) Shares (d) Debentures & Bonds (e)
Investment in Subsidiaries/Associates/joint ventures and
(f) Others (commercial paper, units in Mutual Funds etc).

(iii)

{{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 :

(iii) 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:

+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*

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 l+/H =t x E , +l
E +*
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 >

Diminution, other than temporary, in the value of

investments in subsidiaries / joint ventures.

(iv)

{ 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 >
(vi) Ij Oh E x E hFtJ ttd; { Ei E Vi
*
(vii) +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 *

(v)

(iv) 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.
(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 in Regional Rural Banks are valued at
carrying cost.
(vii) 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.

119

(viii)

(ix)

(x)

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 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 *
x E V E xvh i B+<BBbB/{bB+< u
|ii ]E BCSV E]x 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 *

i V E E nxn E +x z h E Jiv E
x xxx E Vi *
V {
l
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 *
(xi)

]bM {

xh +v E nx EB MB {VMi E +x +i E
+iMi E Vi *

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.

(ix) 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.
(x) 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.
(xi) As per RBI guidelines, the different categories of Swaps
are valued as under:
l

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.
l

]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 * {xx i +i E Sx |hr {ri E
+v { E Vi * {xx {{i xrb;;t E Vi
iE < |E |{i E + ix {j E il { V
Vn +i x * E E EU { E =Si lE =iSg nJ Vi * +iB, - x E +Ei E
Vi * il{, { E =x n i {xx - x E
Vi, VxE =Si E ldg {ix i *
ii)

(viii) Cost of acquisition of investments:

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 non-performing

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. Selection of assets
for revaluation is based on 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 the
fair value, thus necessitating frequent valuation. However,
such frequent valuation is not done for items of Premises
where the changes in fair value are insignificant.

(ii) Capital expenditure incurred during construction period

is included under Other Assets.

120

(iii)

+I E |vx, BB{B B E{] E UcE, V i

V E E nxn E +x{ v {ri 33.33% E n
yJGg E |vx , E{x +vx, 1956 E +xS XIV
xvi n { x {ri E +v { E Vi *

(iii) Depreciation is provided on diminishing balance method

at the rates and the manner prescribed in Schedule XIV
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 RBI guidelines.

(iv)

{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 *

(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)
(vi)

6. +i +i (E{] }])

(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.

Intangible Assets (Computer Software)

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.

(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*

(i)

(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 *

(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 :

7.

Employee Benefits:
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.

(i)

E x ES E v +{x ni+ E xi i
i xn JE lx u V J xE
15(vi)- ES M E *

(i)

(ii)

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]

(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:

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 x |iE i
E +xni EE u E Vi *
J. {x (x<)

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 in respect of Gratuity, which is
conducted by approved actuary every quarter.

E <n E (ES) {x xx, 1995 E +iMi

=x ES E {x E Mix Ei Vxx < xx
E +iMi {x E E{ n + =x ES E
V E 29.09.1995 E <E n +B * <
121

a.

b.

Gratuity:

Pension (New):

The Bank pays pension under Allahabad Bank

(Employees) Pension Regulations, 1995 to employees,
who exercised option under the Regulations and also to
Employees joining the Bank Service on or after
29.09.1995. The plan provides for a pension / family

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 E +v {
Ei x |iE i E +xni EE
u E Vi *
M. {x ({x)
E +{x {x {x Vx E +iMi +b ] E =x
n E {x E Mix Ei V 29.09.1995
{ E i B + +vE V 01.07.1979 E
+l = { i +l {nz i B + Vxx B<{+1995 E +iMi {x E E{ x n * M xvE
Vx + E +{x Vx E +iMi {x ni E v
|vx EE x E +v { Ei * x
|iE i E +xni EE u E Vi *
Mix E E -x Ji E Vi * {x E
Mix xk {j ES xn] +xv |{i x
{ E Vi Vx {x ({x) x i OS] E
]x +{Ii i *
P. +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 *
b. +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 |iE i E
+xni EE u E Vi * B +E xEnEh
E Mix E E -x Ji E Vi *

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 New Pension, which is
conducted by approved Actuary every quarter.

S. 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 |iE i E +xni
EE u E Vi *

f.

122

c.

Pension (Old):

The Bank also pays pension under its own Old Pension
Scheme to members of Award Staff who were recruited
before 29.09.1995 and those Officers who were recruited
or promoted on or before 01.07.1979 and not opted for
pension under ABEPR-1995. It is a non-funded scheme
and the Bank maintains a provision on account of its
pension liability under the Scheme on the basis of actuarial
valuation, which is conducted by approved Actuary every
quarter. Payment is made through Profit and Loss Account
of the Bank. The Pension is paid against specific request
from retired eligible employees, who are required to refund
the amount of gratuity to avail of Pension (Old).
d.

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 non-funded scheme and the Bank maintains
a provision on account of its liability in respect of Leave
Fare Concession under the Scheme on the basis of
actuarial valuation, which is conducted by approved
Actuary every quarter. Payment in respect of LFC facility
is made through the Profit and Loss Account.
e.

Leave Encashment:

The Bank permits encashment of Privilege Leave balance

to its 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 every quarter. Payment of such leave
encashment is made through the Profit and Loss Account.
Sick Leave:

The Bank maintains a provision for its liability on account

of any contingent 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 every quarter.

(iii)

(iv)

CrJg rlr" fuU mkck" b E +v i xv E M

+nx E { +Yi E Vi + +
x Ji |i E Vi *
+{v ES E = E x J +]]Ei
E { +Yi E Vi V vi
B |nx E Vi *

(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.

8. + + E +Yx

8.

xxJi E + +- E ={S +v { E Vi

Income and Expenditure are accounted for on accrual basis

other than those stated below:

i)
ii)

iii)

+x{V +i E { MEi +O { V il +x +
E E j iE +xvi E Vi *
+ E E { { V |{i + + V E E Mhx
vi E xvh +vE u +n V EB Vx
E Vi *
-+x {E + { E +lMi V x Vi
il = {S JMtuok E +v {vi E Vi *

(i)

Recognition of Income and Expenditure:

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 amortized over a
period of five years.

9. {]]

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 *

Rentals received by the Bank are recognized in the profit and

loss account on accrual basis.

Lease

Lease payments for assets taken on operating lease are

recognized as an expense in the profit and loss account.
10. Earnings Per Share

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 *

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

11. Taxation

(i)

E i |vx S (xxi E{E E (]) i) + +lMi

nx E i E Vi ni* E M + { S E E |vx,
|V E n + E x E |M EE E Vi *
+i E Eh =i{z +lMi E +i + niB, V {i
+v |iix E M n, ix {j E il iE xB MB n
x Vx E x + E n fUt |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*

(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. 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)

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*

(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.

123

+xS-18 J ]{{h

SCHEDULE - 18 NOTES ON ACCOUNTS

1. (i) i V E E nxn E +x{ ={V il

+x{V +O i {{i |vx E 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) E E k li E Vi Ex E =q
31.03.2010 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*
2. (i) +i J vx E +iMi |] E +E x
31.03.2010 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
30.09.2009 iE E +v E +i J J E x
il V |] E {lCEh il 31.03.2010 iE E
E E {h x V E { , +i: E<
|vx +{Ii x *
(ii) 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*

(ii) Prudential Floating Provision of Rs.48.00 Crores

(Previous Year Rs.48.00 Crores) is held as at
31.03.2010 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 31.03.2010. 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 30.09.2009 and remaining
outstanding as on 31.03.2010 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.

3. ni z xE xh { S Ex E n
+E i (+lMi E i) E u . 1315.35 Ec
({U . 750.05 Ec) E |vx {{i x M*

3. The provision for income tax (including deferred tax)

aggregating to Rs.1315.35 Crores (previous year Rs.
750.05 Crores) held is considered adequate by the Bank
after taking into consideration various judicial decisions on
disputed issues.

4.

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.4.68 Crores (previous year Rs.4.93 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).

(i)

(ii)
(iii)

(iv)

E.

(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 {x Ei { {
E {Ex +Ji { E VBM* {xEx
E Eh .4.68 Ec (Mi .4.93 Ec) E
+iH E {V +Ii +ii E +xS
.14 (n vii) O+x +O E +iMi v +
n M *
V Jb E Mi ={v x , B +I
Jb il x E Mi { xvi E M *
V Mi ={v x {]] +v i {]]vi
{ | E {vx Mi +v { +l +Ji
{ E M ni*
xxEi {k i {VEh E +{SEiB { E
Vx :1990 + 1998 E nx EEi B x
G: 29 + 10 ] 2 + {k Fhe=e
dR VxE Mi . 0.86 Ec ({U .0.86
Eb) *

(ii) Depreciation has been charged on composite cost of

Land and Building, where cost of land is not available.
(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).

124

(v)

J. +xn E, x< n BE {]]vi {k VE

Mi .0.23 Ec ({U . 0.31 Ec
+xnE, x< n + b Ex x< n
li n {k vi l)
+i +i i +x +i E h xxx

b. 1 leasehold property at Anandlok, New Delhi with original

cost amounting to Rs. 0.23 Crores (previous year Rs.0.31
Crores pertaining to 2 properties situated at Anand lok, New
Delhi & Defence Colony, New Delhi).
(v) Other Assets include intangible Assets, details of which are
as under.
(. Ec )/(Rs. In Crore)

h / Particulars
+l / Opening Balance
E nx Vc / Additions during the year
E nx {vi / Amortized during the year
<i / Closing Balance
5.

.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 . 849.82 Ec (Mi . 657.24Ec)
*
(iii) 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 *
(i)

2009-10

2008-09

12.38

12.85

10.04

2.73

2.37

3.20

20.05

12.38

5. (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
aggregated to Rs.849.82 Crores (Previous year Rs.
657.24 Crores).
(iii) As per RBI guidelines, an amount of Rs.9.78 Crores
(Previous Year Rs.228.70 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

E i{h J xi J 3(iii) =Ji ,

b ] S] h E E nx {vi
|ii E +Ei E >{ . 112.32 Ec (Mi
.91.30 Ec) E +iH +Vx Mi il V
x { + P]E ..E E xnx x J 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 (iii), the excess of
acquisition cost over the face value of the security
amortized during the year amounts to Rs.112.32 Crores
(Previous year Rs.91.30 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. E x E nx Vx ]bM E B E< k{h x

E + x E +i E |iiEh E *
7. E nx E x +{x |vEi {V E .1500 Ec
gE .3000 Ec E * Ei{ ]Ei E
E |vEi {V gx E v nxE 10 x 2009 E
i E E +vSx E +x E M* r E
+xh ix |vEi {V .10/- |i E
150 Ec <C] + |vEi {V E
MEh |vx u l xvi E VBM*
8. E n x, E x 8.45% |.. E n 120 E +li
4 +Mi 2019 E {{C x +v i .450 Ec E
+|ii Mh @h ]** V IX b, 8.58% |i E n
15 +li 10 E n M E{ E l 18 n
2024 E {{C x +v i . 500 Ec E +{ ]
II V b, + 9.08% |i E n . 150 Ec
E
<z] {{ S+ b ] <]] (+<{b+<) V II V]B *
{U E x 9.28% |i E n . 500 Ec E
+|ii +{ ] II V b, 9.23% |i E n .
400 Ec E Mh @h V VIII b + 9.20% |i E
n . 150 Ec E <z] {{ S+ b ] <]] (+<{b+<)
V * V]B l*

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 increased its authorized capital
from Rs. 1,500 Crores to Rs. 3,000 Crores. This has been
pursuant to Govt. of India notification dated 10th November,
2009 enhancing the authorized capital of certain nationalized
banks. Pursuant to the enhancement, the current authorized
capital includes 150 Crores of equity shares of Rs. 10/- each
and the classification of the balance authorized capital will
be determined by the management in due course.
8. During the year, the bank has raised unsecured
subordinated debt Tier II Series IX Bond of Rs. 450.00
Crores @ 8.45% for a period of 120 months i.e. maturing
on 4th August 2019, Upper Tier II Series Bonds of Rs. 500.00
Crores @ 8.58% for a period of 15 years i.e. maturing on
18th December 2024 with Call Option after 10 years and
Innovative Perpetual Debt Instrument (IPDI) Series II of
Rs. 150.00 Crores @ 9.08%. Previous year Bank raised
Unsecured Upper Tier II Series I Bond to the tune of Rs.
500 Crores @ 9.28%, Subordinated Debt Series VIII Bond
of Rs. 400.00 Crore @9.23% and Innovative Perpetual Debt
Instrument (IPDI) Series I of Rs.150.00 Crore @ 9.20%.

125

9. +O +i-E Mi |h{j E Eh . x Ec
(Mi . 480.00 Ec) E *
10. E E nxn E +x |E]Eh :
10.1 {V

9. Advances include Rs. NIL Crores (Previous year Rs. 480.00

Crores) on account of Inter Bank Participation Certificates.
10. Disclosure in terms of RBI guidelines:
10.1 Capital

(. Ec )/(Rs. In Crore)
h

/ Particulars

i)

+B+

ii)

+B+ - ]-* {V

iii)

+B+ - ]-** {V (%) /CRAR Tier II Capital (%)

i E E vh E |iii

iv)

Current Year

Previous Year

13.62%

13.11%

8.12%

8.01%

5.50%

5.10%

55.23%

55.23%

150.00

150.00

500.00

500.00

(%) /CRAR (%)

(%) /CRAR Tier I Capital (%)

Percentage of the shareholding of the Government of India

v)

+<{b+< V EE =M M<
Amount raised by issue of IPDI

vi)

+{ ]-** V E =M M<
Amount raised by issue of Upper Tier II instruments

10.2

h
(1)
(i)

(ii)

(iii)

(2)

/ Investments

/ Particulars

Current Year

x E / Value of Investments
x E E /Gross Value of Investments
(E) i / (a) In India
(J) i /(b) Outside India
+I i |vx / Provisions for Depreciation
(E) i / (a) In India
(J) i / (b) Outside India,
x E x / Net Value of Investments
(E) i / (a) In India
(J) i / (b) Outside India,
x { +I E { vi |vx E Sx

(. Ec )/(Rs. In Crore)
{U
Previous Year

38680.43

30081.35

x / NIL

x / NIL

251.80

430.30

x / NIL

x / NIL

38428.63

29651.05

x / NIL

x / NIL

Movement of provisions held towards depreciation on investments.

(i)
(ii)
(iii)
(iv)

+l / Opening balance
Vc: E nx E M |vx / Add: Provisions made during the year
DxtYk& rlJuN fuU yvtuFl fuU rtY ={M E M |vx

430.30

322.03

0.00

112.06

Less: Write off/ write back of excess provision during the year

178.50

3.79

<i

251.80

430.30

/Closing balance

126

10.2.1

(. Ec )/(Rs. In Crore)

huvtu 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

/ NIL

x / NIL

x / NIL

x / NIL

100.00

2100.00

194.05

2100.00

lli
31.03.2010
As on
31.03.2010

huvtu E +iMi S M< |ii

x

Securities sold under repos

{ E +iMi Jn M< |ii

Securities purchased under reverse repos

10.2.2 M-BB+ x {] / Non-SLR Investment Portfolio

i) M-BB+ x E VEi P]x nxE 31.3.2010 E lli / Issuer composition of Non SLR investments as on 31.03.2010

(. Ec )

/ (Rs. In crore)

. VEi

xV {]
E mebt

"" <x]] Ob""

|ii E mebt

""+x ]b""
""+x ]b""
|ii E mebt |ii E mebt

No. Issuer

Amount
(3)
934.30
403.38
212.14

Extent of
Private
Placement
(4)
881.93
53.25
35.08

Extent of Below
Investment
Grade Securities
(5)
x / NIL
x / NIL
x / NIL

Extent of
Unrated
Securities
(6)
x / NIL
x / NIL
x / NIL

728.62

332.50

x / NIL

16.22

123.46

117.22
5113.36
7509.02

0.00
0.00
1302.76

x / NIL
x / NIL
x / NIL

x / NIL
x / NIL

x / NIL
x / NIL

16.22

218.73

Provision held towards

Depreciation
(201.61)

0.00

x / NIL

x / NIL

x / NIL

1302.76

x / NIL

16.22

218.73

(1) (2)
(i) {B / PSUs
(ii) k lB / FIs
(iii) E / Banks
(iv) |<] E{]
Private Corporate
(v) +xM lB

Extent of
Unlisted
Securities
(7)
58.44
31.83
5.00

H =t

Subsidiaries / Joint
Ventures
(vi) +x/Others
={E/Sub-total

i E
M |vx

/ Total

7307.41

1739.10

iii)

/ Shares
bS B xb / Debentures and Bonds
+xM B H =t / Subsidiaries and Joint Ventures

iv)

+x

5113.35

i)
ii)

117.22

/ Others
/Total

ii) M-x{nE

539.35

7509.02

M-BB+ x / Non performing Non-SLR investments

S

/ Particulars

Current Year

+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
127

(. Ec ) / (Rs. In crore)
{U
Previous Year

6.04

10.56

0.00

0.00

2.00

4.52

4.04

6.04

4.04

6.04

10.3.

b<] / Derivatives
n E/V n {

10.3.1. b

i)
ii)

{U

b= / Items
{ E E xx vx

Current Year

Previous Year

Notional principal of swap agreements

500

1000

Losses which would be incurred if counterparties failed to fulfil

their obligations under the agreements

x / NIL

x / NIL

Collateral required by the bank upon entering into swaps

Banking

Banking

Concentration of credit risk arising from the swaps

{ E E =Si / Fair value of the swap book

(43.69)

(88.03)

+M E E +iMi |i{I +{x Sxri+ E { Ex

i = x P]

iii)

{ x { E u Ui {E

iv)

{ x @h VJ { ExpEh

v)

(. Ec / Rs in Crores)

/ Forward Rate Agreement/ Interest Rate Swap

10.3.2 Ymas { ]bb V n b<u] : x

10.3.2 Exchange Traded Interest Rate Derivatives: -Nil

10.3.3 b<] sturFb BC{V vi |E]Eh

10.3.3 Disclosures on risk exposure in derivatives

MhiE |E]Eh :

Qualitative Disclosure:

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 *

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.

128

jiE |E]Eh

/ Quantitative Disclosures

G..

Sl.No

Particulars

(i)

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) ni (-) /b) Liability (-)
@h BC{V (2)/Credit Exposure (2)
V n BE |ii E {ix E | (100*PV01)

(ii)

(iii)
(iv)

Ex
b<]
Currency
derivatives

(. Ec )/(Rs. In Crore)
V n
b<]
Interest rate
derivatives

x /
x /

NIL
NIL

x /

NIL

x /
x /
x /

NIL

x /

NIL

NIL

x /
x /

NIL

x /
x /

NIL

500

NIL

(43.69)

x /

NIL

Likely impact of one percentage change in interest rate (100*PV01)

(v)

E) VM b<] { / a) on hedging derivatives

J) ]bM b<] { / b) on trading derivatives
E nx { M 100*PV01 E +vEi B xxi

NIL

( 0.26)

x /

NIL

Maximum and Minimum of 100*PV01 observed during the year

E) VM { / a) on hedging
J) ]bM { / b) on trading
+i Mhk /Asset Quality
10.4.1 +x{V +i / Non-Performing Asset
n/ Items
(i) x +O x Bx{B (%) / Net NPAs to Net Advances (%)
(ii) 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
(iii) x Bx{B E Sx / Movement of Net NPAs
(E) +l / (a) Opening balance

NIL

(0.26 )

x /

NIL

10.4

(J) E nx {vx

(iv)

/ (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)
Movement of provisions for NPAs (excluding provisions on standard assets)
(E) +l / (a) Opening balance

31.03.10

31.03.09

0.66

0.72

1078.25

1010.51

1238.15

846.06

(1094.60)

(778.32)

1221.80

1078.25

422.11

399.81

407.94

67.74

(359.90)

(45.44)

470.15

422.11

641.64

591.69

(J) E nx EB MB |vx / (b) Provisions made during the year

830.21
313.23
(M) +iH |vx E <] + / <] E / (c)Write-off / write-back of excess provisions (720.20) (263.28)
(P) <i / (d) Closing balance
751.65
641.64
b+<V/<V |{i B +x ni+ vi Ei{ A sum of Rs. Nil- (Previous Year Rs.14.50 Crores) has
E { .-x- (Mi .14.50 Ec) E E been netted with gross advances on account of receipts from
DICGC / ECGC and certain amounts held in other liabilities.
E +O E l Vc n M *
10.4.2 Provision Coverage Ratio
10.4.2 |vx EV +x{i
E nxn E +x 31.03.2010 E E E |vx The provision coverage ratio of the bank in terms of RBI
guidelines as on 31.03.2010 is 78.95%
EV +x{i 78.95% *
129

10.4.3 Loan Restructuring:

Particulars of Accounts Restructured:

10.4.3
@h {xM` x
{xM`i +i E :

{xMXi
xE +O
Standard Advances
Restructured

{xMXi
+xE +O
Sub-standard Advances
Restructured

{xMXi nMv
+O
Doubtful Advances
Restructured

/ Total

(. Ec )

/ (Rs. In crore)

b+
CDR
ij

BB< @h

+x

SME Debt

Others

{xMXi

{xMXi

Mechanism

Restructuring

Restructuring

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )

11
417.22

2966
218.71

26960
2580.86

29937
3216.79

Sacrifice (diminution in the fair value)

=vEi+ E J / No of Borrowers
E / Amount Outstanding

40.73
x/ Nil
x/ Nil

3.41
562
54.33

36.65
1733
123.84

80.79
2295
178.17

x/ Nil
x/ Nil
x/ Nil

1.34
86
19.65

2.16
438
5.75

3.50
524
25.40

x/ Nil
11
417.22

0.92
3614
292.69

0.23
29131
2710.45

1.15
32765
3420.36

40.73

5.67

39.04

85.44

Total

+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)
=vEi+ E J / No of Borrowers
E / Amount Outstanding

+viM (=Si )
Sacrifice(diminution in the fair value)

10.4.4 Jn M< / S M< +xVE k {k E h

10.4.4 Details of financial assets sold to Securitisation /

Reconstruction Company for Asset Reconstruction

(. Ec )
i)
ii)

n / Items
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)

/ (Rs. In crore)

2009-10

2008-09

101

21

0.00
84.79

0.11
20.00

0.00
84.79

0.00
19.89

Mi +ii E M Ji E M +iH |i

Additional consideration realised in respect of accounts transferred in earlier years

v) x { E /x / Aggregate gain /(loss) over net book value

10.4.5 Jn M< / S M< +xVE k {k E h

10.4.5

E. Jn M< +x{V k +i: x

J. S M< +x{V +i E h :

A. Non-performing financial assets purchased : Nil

Details of non-performing financial assets

purchased/ sold:

B. Details of non-performing financial assets sold:

(. Ec )
S

h /Particulars
1. S

MB Ji / No. of accounts sold

2. E E / Aggregate Outstanding
3. |{i E |i / Aggregate consideration received
130

/ (Rs. In crore)

{U

Current Year

Previous Year

101

21

0.00

0.11

84.79

19.89

10.4.6

xE +i { |vx / Provisions on Standard Asset

S

h / Particulars

Current Year

xE +i E B |vx /
11.

+x{i

(i)

Provisions towards Standard Assets

/ Business Ratios:

h / Particulars
E xv E |iii E { V +

(iv)
(v)

{U

Previous Year

8.02%

8.67%

1.45%

1.34%

Operating Profit as a percentage to Working Funds

2.44%

2.24%

+i { |i / Return on Assets
|i ES (V il +O) (. Ec )

1.16%

0.90%

8.45

7.06

0.0576

0.0375

E xv E |iii E { M-V +
E xv E |iii E { {SxMi

Business (Deposits plus Advances) per employee (Rs. In Crore)

(vi)

20.01

Current Year

Non-interest income as a percentage to Working Funds

(iii)

Previous Year

2.85

Interest Income as a percentage to Working Funds

(ii)

(. Ec )/(Rs. In Crore)
{U

|i ES (. Ec )

/ Profit per employee (Rs. In Crore)

12. +i

ni |vx / Asset Liability Management:

+i B ni+ E Ei{ n E {{Ci {]x 31.03.2010
(. Ec )/(Rs. In Crore)

Maturity pattern of certain items of assets and liabilities as on 31.03.2010

{{Ci {]x

n p

Maturity Pattern

Foreign Currency

(]< E])

+O

=v

+i

niB

(Time buckets)

Deposits

Advances

Investments

Borrowings

Assets

Liabilities

1066.28

1573.53

20.00

102.64

0.00

0.00

3531.62

499.98

9.91

4.56

0.00

0.00

3385.44

675.35

39.92

0.00

551.91

560.31

3230.73

2112.16

540.61

44.90

208.17

63.72

17681.54

6052.55

3908.36

496.08

565.56

418.58

11112.64

7405.66

331.78

579.54

488.30

447.54

14191.82

4774.82

306.32

103.86

13.47

95.19

45268.68

23078.06

2100.33

200.00

0.00

56.63

3940.59

7069.72

3385.74

492.00

244.99

388.98

2646.41

18363.04

27785.66

3411.90

147.53

134.45

106055.75

71604.87

38428.63

5435.48

2219.93

2165.40

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

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

131

13.
13.1

BC{V / Exposures
{n Ij E BC{V / Exposure to Real Estate Sector:

h / Category
(E) |iI BC{V / A) Direct exposure
(i) vE - / (i) Residential Mortgages

(. Ec )
Current Year

/ (Rs. In crore)

Previous Year

=v =x {k { vE u {hi |ii ,V =vEi E EV +x E { *

Lendings fully secured by mortgages on residential property that is or will
be occupied by the borrower or that is rented

3197.75

3173.14

2981.31

2972.00

2312.28

2568.59

6.36

8.42

J. hVE -{n / b. Commercial Real Estate.

4.49
(J) +|iI BC{V / B) Indirect Exposure
] + E (BxBS) B + k E{x (BSB) { xv +vi B M-xv +vi BC{V

5.99

- V .20 J iE E HMi + @h
-of which individual housing loans upto Rs. 20 lacs
(ii) hVE -{n / (ii) 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 *

Lendings 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 -

(iii) Investments in Mortgage Backed Securities (MBS) and other securitised exposures
E. / a. Residential

Fund based and non-fund based exposures on National Housing Bank (NHB) and Housing
Finance Companies (HFCs).
{V V BC{V /Total Exposure to Real Estate Sector
13.2

{V V BC{V

/ Exposure to Capital Market

1130.67
6651.55

1029.42
6785.56

(. Ec )

/ (Rs. In crore)

G .
Sr.No.
i)

n / Item
<C] , {ix b/bS il <C] =xJ S+ b E x] EB
MB |iI x VxE xv +xxi: E{] @h xi x E Vi*
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)

31.3.09

696.74

492.63

<C] (+<{+/<B+{B i), {ix b B bS, <C] =xJ

S+ b E x] x i H E E n +O
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;

iii)

31.03.10

+x E |Vx , V |lE |ii E { +l {ix b +l

{ix bS +l <C] =xJ S+ b E x] Vi , i +O

x /

NIL

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;

iv)

x / NIL
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 *
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;

132

151.58

0.02

x /

NIL

160.84

]E E E |ii B +|ii +O il ]E E B E] E E + V M] *

v)

Secured and unsecured advances to stock brokers and guarantees issued on

behalf of stock brokers and market makers;
vi)

129.00

87.85

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)

|ii <C] }/< E r E{x E {E @h

viii)

E |lE < +l {ix b +l {ix bS +l <C] =xJ

S+ b E x] E v E u M< n |iri

Bridge loans to companies against expected equity flows/issues;

x /

NIL

x /

NIL

x /

NIL

x /

NIL

x /

NIL

x /

NIL

x /

NIL

x /

NIL

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;
ix)

Vx ]bM i ]E E E k{h /
Financing to stock brokers for margin trading;

=t {V xv ({VEi B M-{VEi nx) E BC{V

x)

All exposure to Venture Capital Funds (both registered and unregistered)

{V V E E BC{V

13.3

VJ h E] BC{V

VJ
h

/ Total Exposure to Capital Market

/ Risk Category wise Country Exposure

E
BC{V (x)
31.03.2010

Risk
Category

Exposure (net)
as at 31.03.2010

1.50

3.75

978.82

745.09

(. Ec )

/ (Rs. In crore)

31.03.2010

E
vi |vx

31.03.2009

E
BC{V (x)

31.03.2009

E
vi |vx

Provision held
as at 31.03.2010

Exposure (net)
as at 31.03.2009

Provision held
as at 31.03.2009

xMh / Insignificant
1090.44
x / NIL
1237.81
E / Low
739.09
x / NIL
999.54
v / Moderate
195.89
x / NIL
40.48
+vE / High
0.54
x / NIL
2.19
i +vE / Very High
25.28
x / NIL
1.04
|ivi / Restricted
1.47
x / NIL
0.00
+-Gb] / Off-credit
8.84
x / NIL
0.00
E / Total
2061.55
x / NIL
2281.06
13.4
E u +iGi BE =vEi (BB), =vEi (VB) E h - x

x /
x /
x /
x /
x /
x /
x /
x /

NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL

Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL) exceeded by the bank NIL
13.5 Unsecured Advance:
Particulars
a)
b)

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.

c)

+i {E |ii E +xxi

/Estimated value of intangible collaterals

133

Current Year

Previous Year

12300.32

11053.64

691.68

579.69

NA

NA

13.6
13.6.1

v / Miscellaneous
E nx +E i E M |vx E / Amount of Provisions made for Income tax during the year:
(. Ec )/(Rs. In Crore)

h / Particulars
+E i |vx / Provision for Income Tax
+lMi @h i |vx / Provision for Deferred Tax

Current Year

Previous Year

554.24

297.00

11.05

3.39

+xM E i |vx / Provision for Fringe Benefit Tax

x /

NIL

6.78

13.6.2 E u MB MB nb : x (Mi : x) / Penalties imposed by RBI : Nil (Previous Year: Nil)

14.1 V E Exph / Concentration of Deposits:
(. Ec )/(Rs. In Crore)

c VEi+ E E V Total Deposit of twenty largest depositors

E E E V c VEi+ E V E |ii

7810.08

Percentage of Deposits of twenty largest depositors to Total Deposits of the bank

7.36%

+O E Exph /Concentration of Advances:

c =vi+ E E +O Total Advances to twenty largest borrowers
E E E +O c =vEi+ E +O E |ii

(. Ec )/(Rs. In Crore)

14.3 BC{V

(. Ec )/(Rs. In Crore)

14.2

18335.09

Percentage of Advances to twenty largest borrowers to Total Advances of the bank

E Exph / Concentration of Exposures

c =vEi+/OE E E BC{V
Total Exposure to twenty largest borrowers/ customers

25.61

18335.09

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
14.4 Bx{B

E Exph

23.23

(. Ec )/(Rs. In Crore)

Concentration on NPAs

S Bx{B Ji E BC{V (E) / Total Exposure to top four NPA accounts (Gross)
14.5 Ij

Bx{B

(. Ec )

Sector-wise NPAs

G .
Sl. No. Sector

217.16
/ (Rs. In crore)

< 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)
3
/ Services
4
HE @h / Personal Loans
14.6 Bx{B E Sx / Movement of NPAs
h/ Particulars
1
+| 2009 E E Bx{B (+l) E nx r (xB Bx{B)
1

1.86

1.49

P]B

(i)
(ii)

(iii)

4.60
3.37

(. Ec )

/ (Rs. In crore)

Gross NPAs as on 1st April 2009 (Opening Balance)

Additions (Fresh NPAs) during the year
={ Vc (E) P]B / Sub- Total (A)
/ Less:=zx Upgradations

1078.25
1238.15
2316.40

Recoveries (excluding recoveries made from upgraded accounts)

<]-+/Write-offs
={ Vc (J) / Sub- Total (B)

241.44
642.65
1094.60

Gross NPAs as on 31st March 2010 (closing balance) (A-B)

1221.80

(+{Ob Ji E M< E UcE)

31 S 2010 E lli E Bx{B (<i) (E-J)

134

210.51

14.7

n +i Bx{B + V /

Overseas Assets, NPAs and Revenue

h/Particulars
E +i / Total Assets
E Bx{B / Total NPAs
E V / Total Revenue

(. Ec )

/ (Rs. In crore)

Amount( in Rupees Crores)

1815.08
0.95
49.06

ix {j |Vi B{ (Vx J xE E
+x Ei E Vx +{Ii ): x

14.8 Off-balance Sheet SPVs sponsored (which are

required to be consolidated as per accounting norms)
: NIL
15. Income from Bancassurance business during the
year:
Commission received on life & non-life insurance
business: Rs. 16.49 Crores

16.

E nx E |{i + :
Vx + M-Vx { |{i Ex: .
16.49 Ec
+iH |E]Eh / Additional Disclosures:

16.1

Provisions & Contingencies debited to Profit & Loss Account:

14.8
15.

(a)
(b)
(c)
(d)
(e)
(f)
(g)
16.2
(a)

h/Particulars
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
+xM E/Fringe Benefit Tax
+x/Others
E/Total
+l |vx /Floating Provisions:
h/Particulars
+l |vx Ji +l /

(. Ec )
2009-10

2008-09

(102.44)

357.49

830.21

313.23

3.39
6.78

1342.23

1132.55

(. Ec )

/ (Rs. In crore)

2009-10

2008-09

48.00

48.00

NIL

NIL

NIL

NIL

48.00

48.00

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

17. 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 *
17.1

11.05

134.65

Purpose and amount of draw down during the year

(d)

20.01
297.00

0.00

Quantum of Floating Provision made during the year

(c)

2.85
554.24

46.31

Opening Balance in Floating Provision Account

(b)

/ (Rs. In crore)

17. 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:

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:
:
(. Ec )/(Rs. In Crore)
Income and Expenditure relating to prior period are as under:
h/Particulars
2009-10
2008-09
+ Income
(9.34)
1.26
Expenditure
3.03
8.09

{ +v vi + + xxx

x/Net

(12.37)

17.2 V +Yx E v BB 9 E +iMi xEn +v

{ +Yi + n i iiE x l |E]Eh E
+Ei x l*

(6.83)

17.2 Income items recognised on cash basis were either not

material or did not require disclosure under AS 9 on
Revenue Recognition.

135

17.3 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 +{x
* <x xvE/M-xvE ES E J v E
E ni+ E (E) i xn JE lx u
V J xE 15 (BB 15) (vi) xvi ri
+ (J) i E lx u V nxn VBx26
E +x +xni E u EB MB EE x E
+v { +Yi E Vi *

17.3 The Bank has adopted Accounting Standard 15(R)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. Banks liabilities on
account of these funded/ non-funded employee benefits
are recognised on the basis of acturial valuation carried
out by approved Actuary as per (a) Principles laid down
in AS 15 (R) issued by the Institute of Chartered
Accountants of India, and (b) guidelines GN 26 issued
by Institutes of actuaries of India.

EE +xx / Actuarial assumptions:

(. Ec )

/ (Rs. In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
{x
+E
(x)
OS]
({x)
xEnEh BB +E

h / Particulars

i n / Discount Rate
ix E fi n
- 20 E iE
Salary Escalation Rate
-service up to 20 years

- =E n E

- service thereafter

n / Attrition Rate(p.a)
Vx +i { + E |ii n
Expected Rate of Return
on Plan Assets

Pension
(New)

Gratuity

Pension
(Old)

Leave
Encashment

LFC

Sick Leave

8%

8%

8%

8%

8%

8%

7.5%

7.5%

7.5%

7.5%

0.00

7.5%

5%
1%

5%
1%

5%
1%

5%
1%

0.00
1%

5%
1%

8%

8%

0.00

0.00

0.00

0.00

E) vi E ix {ix :
A) Change in the present value of Obligation:

(. Ec )

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
{x
+E
(x)
OS]
({x)
xEnEh BB +E

h / Particulars

Pension
(New)
a)

E + {+

f)

Pension
(Old)

Leave
Encashment

LFC

Sick Leave

C.Y.

614.69

390.75

142.45

97.68

11.47

19.81

544.37

354.95

118.38

95.73

8.52

16.66

Mi

C.Y.

47.60

30.12

11.00

7.05

0.37

1.58

Interest cost

P.Y.
C.Y.

39.46
66.30

25.80
15.51

8.57
7.83

6.61
3.70

0.28
0.00

1.25
1.80

|nk

Current Service Cost

P.Y.
C.Y.

62.85
(39.34)

10.25
(28.43)

5.55
(9.80)

7.97
(19.23)

0.00
(13.64)

2.03
0.00

Benefits Paid

P.Y.

(36.60)

(21.99)

(8.11)

(15.10)

(9.52)

0.00

c) S

e)

Gratuity

PVO at the beginning of the year P.Y.

b) V

d)

/ (Rs. In crore)

Mi

vi { EE x/ (+)

C.Y.

(2.43)

11.78

11.02

14.30

15.94

(1.69)

Actuarial Loss/ (Gain)

on Obligation

P.Y.

4.61

21.74

18.06

2.47

12.19

0.13

E +i {+/

C.Y.

686.82

419.72

162.51

103.49

14.14

21.51

PVO at the close of the year

P.Y.

614.69

390.75

142.45

97.68

11.47

19.81

136

J) Vx {k E =Si {ix :
B) Changes in the Fair Value of Plan Assets:

/ (Rs. In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
{x
+E
(x)
OS]
({x)
xEnEh BB +E

h / Particulars

a)

(. Ec )

Pension
(New)

Gratuity

Pension
(Old)

Leave
Encashment

LFC

Sick Leave

E +i
Vx +i E =Si

C.Y.

614.69

390.75

Fair Value of Plan Assets at the

P.Y.

530.45

337.42

Vx +i |ii |i

C.Y.

49.17

31.26

Expected return of Plan Assets

P.Y.

42.44

26.99

C.Y.

50.78

21.58

9.52

beginning of year
b)

c) ES

E +nx

Employers Contribution

P.Y.

76.88

30.43

8.11

15.10

C.Y.

(39.34)

(28.43)

Benefits Paid

P.Y.

(36.60)

(21.99)

(8.11)

(15.10)

(9.52)

e) EE

C.Y.

11.52

4.57

P.Y.

1.53

(17.90)

C.Y.

686.82

419.72

P.Y.

614.69

390.75

g) Vx +i { iE |i C.Y.
Actual return on Plan Assets
P.Y.

53.08
46.56

31.91
29.29

d)

|nk
(x)/+

Actuarial (Loss)/Gain
f) +i

E =Si

Fair Value of Plan Assets at the

close of year

M) x EE x / (+ ) / C

Net Actuarial Loss / (Gain)

(. Ec )

/ (Rs. In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
{x
+E
(x)
OS]
({x)
xEnEh BB +E

h / Particulars

Pension
(New)

Gratuity

Pension
(Old)

Leave
Encashment

LFC

Sick Leave

J) Vx +i { EE x/(+)

C.Y.
P.Y.
C.Y.

(2.43)
4.61
(11.52)

11.78
21.74
(4.57)

11.02
18.06
0.00

14.30
2.47
0.00

15.94
12.19
0.00

(1.69)
(0.13)
0.00

b) Actuarial loss / (gain) on

P.Y.

(1.53)

(17.90)

0.00

0.00

0.00

0.00

M) x EE (x)/+

C.Y.

(13.95)

7.21

11.02

14.30

15.94

(1.69)

c) Net Actuarial loss / (gain)

P.Y.

(3.09)

(3.84)

(18.06)

(2.47)

(12.19)

(0.13)

P) +v +Yi EE (x)/+

C.Y.

(13.95)

7.21

11.02

14.30

15.94

(1.69)

S) +x+Yi EE x

P.Y.
C.Y.

(3.09)
0.00

(3.84)
0.00

(18.06)
0.00

(2.47)
0.00

(12.19)
0.00

(0.13)
0.00

e) Unrecognised actuarial loss

P.Y.

0.00

0.00

0.00

0.00

0.00

0.00

E) vi { EE x / (+) (J)
a) Actuarial loss / (gain) on
obligation (B)

Plan assets (C)

d) Actuarial loss / (gain) recognized

in the period

137

D) ;wtlvt

bku btg htrN

/ Amount recognized in Balance Sheet:

(. Ec )/(Rs. In Crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
{x
+E
(x)
OS]
({x)
xEnEh BB +E

h / Particulars

Pension
(New)

Gratuity

Pension
(Old)

Leave
Encashment

LFC

Sick Leave

E) E +i {i
vi E ix

C.Y.

686.82

419.72

162.51

103.49

14.14

21.51

a) Present value of defined benefit

obligation at the end of the Year
P]B :/Less:

P.Y.

614.69

390.75

142.45

97.68

11.47

19.81

J) E {i { Vx
+i E =Si

C.Y.

686.82

419.72

0.00

0.00

0.00

0.00

b) Fair value of Plan Assets at

close of the Year

P.Y.

614.69

390.75

0.00

0.00

0.00

0.00

M) ix {j +Yi M-xvr
x ni /(+i)

C.Y.

0.00

0.00

29.86

25.04

16.31

1.70

P.Y.

0.00

0.00

142.45

97.68

11.47

19.81

c) Unfunded Net Liability / (Asset)

recognized in Balance Sheet

R ) B x Ji +Yi :
E) Expenses recognized in Profit & Loss account

(. Ec )/(Rs. In Crore)
Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
{x
+E
(x)
OS]
({x)
xEnEh BB +E

h / Particulars

E) S Mi

Pension
(New)

Gratuity

Pension
(Old)

Leave
Encashment

LFC

Sick Leave

a) Current service cost

C.Y.
P.Y.

66.30
62.85

15.51
10.25

7.83
5.55

3.70
7.97

0.00
0.00

1.80
2.03

J)V Mi

C.Y.

47.60

30.12

11.00

7.05

0.37

1.58

b) Interest Cost

P.Y.

39.46

25.80

8.57

6.61

0.28

1.25

M) Vx +i { |ii +

C.Y.

49.17

31.26

0.00

0.00

0.00

0.00

c) Expected return on Plan Assets

P.Y.

(42.44)

26.99

0.00

0.00

0.00

0.00

P) +Yi x EE
x/ (+)

C.Y.

13.95

(7.21)

(11.02)

(14.30)

(15.94)

1.69

R) x

P.Y.
C.Y.

3.09
50.78

3.84
21.58

18.06
29.86

2.47
25.04

12.19
16.31

(0.13)
1.70

e) Net Benefit Expense

P.Y.

62.96

12.90

32.18

17.05

12.47

3.15

d) Net actuarial loss / (gain)

recognized in the year

138

S) ix {j +Yi ni+ E Sx :
F) Movements in the Liability recognized in the Balance Sheet

(. Ec )/(Rs. In Crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Unfunded
{x
{x
+E
(x)
OS]
({x)
xEnEh BB +E

h / Particulars

Pension
(New)

Gratuity

Pension
(Old)

Leave
Encashment

LFC

Sick Leave

E)+l x ni

C.Y.

0.00

0.00

0.00

0.00

0.00

0.00

a) Opening Net Liability

P.Y.

13.92

17.53

118.38

95.73

8.52

16.66

J) x

C.Y.

50.78

21.58

29.86

25.05

16.31

1.70

b) Net Benefit Expense

P.Y.

62.96

12.90

32.18

17.05

12.47

3.15

P]B : / Less:
M) |nk +nx

C.Y.

(50.78)

(21.58)

0.00

0.00

0.00

0.00

c) Contribution paid

P.Y.

(64.38)

(28.87)

(8.11)

(15.10)

(9.52)

0.00

P) <i x ni

C.Y.

0.00

0.00

29.86

25.05

16.31

1.70

d) Closing Net Liability

P.Y.

12.50

1.56

142.45

97.68

11.47

19.81
(in %)

U) ]] u xB J MB x E |ii :
G) Investment percentage maintained by the Trust:

h
Particulars

{x (x<)

OS]

Pension (New)

Gratuity

2009-10

2008-09

2009-10

2008-09

Exp E E |ii / Central Govt. Securities

V E E |ii / State Govt. Securities
=SS i E{] b ({B/{B)

33.97

33.00

36.58

33.43

23.37

23.00

20.89

22.43

High Quality Corporate Bonds (PSU/PFC)

V VxB / Special Deposit Scheme

40.34
1.57

42.00
2.00

41.72
0.17

43.94
0.20

0.75

0.00

0.64

0.00

+x x / Other Investment
17.4 ix vx E +i { nB Vx iE ix E E
+xxi ni i k 2009-10 E nx ix
E i . 153 Ec ({U . 122 Ec) E
|vx E M * <E +iH E{h xi E {
{x ni i .47 Ec E inl |vx E M *
17.5 M] {]M - J xE (BB) 17 M] {]M*
M] SxB Ei k h xE E { 4 E
+x n M< *

17.4 Pending finalisation of wage revision, a provision of Rs.

153 Crores during the financial year 2009-10 (previous
year Rs. 122 Crores) towards estimated liability of wage
arrears has been made. Further, as a prudent policy, an
ad-hoc provision of Rs. 47 Crore has been made towards
pension liability.

17.6 vi {IE E |E]Eh - J xE (BB) 18

vi {] E S B xnx

17.6 Related Party Disclosures Accounting Standard (AS)

18 List of Related Parties and Transactions

17.5 Segment Reporting Accounting Standard (AS) 17

Segment Reporting Segment information is given in the
Consolidated Financial Statements in terms of para 4 of
the Standard.

139

E)

vi {] E x, E E l =xE v il EB MB xnx :

a)

The names of the related parties, their relationship with the bank and transaction effected:

G . x
No.

Name

/ (Rs. In Lacs)

{nx

(h. ttFtu b)
{v

Designation

Remuneration

Sl.

2009-10

2008-09

21.70

8.39

2.48

NIL

1.92

NIL

17.69

5.42

6.69

12.83

1.37

0.91

3.53

3.20

14.31

8.39

31.03.2010 E lli Vn xnE / Existing Directors as on 31.3.2010

1
V.{. n+
+vI B |v xnE
2
3

Shri J. P. Dua

Chairman & Managing Director

b. E

E{E xnE

Shri D. Sarkar

Executive Director

B. +. xE

E{E xnE

Shri M. R. Nayak

Executive Director

{ xnE / Ex Directors
1
E. +. Ei
2
3
4
5

i{ +vI B |v xnE

Shri K. R. Kamath

Ex-Chairman & Managing Director

B. . Vx

i{ +vI B |v xnE

Shri A. C. Mahajan

Ex-Chairman & Managing Director

+. Bx.

i{ +vI B |v xnE

Shri O. N. Singh

Ex-Chairman & Managing Director

B. E. M

i{ E{E xnE

Shri S. K. Goel

Ex-Executive Director

E. E. +O

i{ E{E xnE

Shri K K Agarwal

Ex-Executive Director

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)

b)

+xM E{x :
i)

i)

+E <xx ]b ({h i )
c)

M. H =t :

iii)

d)

n Oh E
x { Vx <xx E{x . ={H M

All Bank Finance Limited (wholly owned)

Joint Venture:
i)

BB+<(<b) .
P) BB] :
i)
<n { Oh E*
ii)

ii)

Subsidiary:

ASREC(India) Ltd.

Associates:
i)

Allahabad U.P. Gramin Bank*

ii)

Sharda Gramin Bank

iii) Universal Sompo General Insurance Company

Limited.

k 2009-10 E nx n Ij Oh E +li
Jx> Ij Oh E + jh Ij Oh E i
E <n { Oh E E x BE x Ij Oh
E M`i E M*
Ij Oh E E E 35% E + x {
Vx < E{x 30% E *

*During the financial year 2009-10, two Regional Rural Banks

namely Lucknow Kshetriya Gramin Bank & Triveni Kshetriya
Gramin Bank amalgamated to form a new RRB named
Allahabad U P Gramin Bank.

+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.

The Bank is holding 35% shares of the above Associated

Regional Rural Banks and 30% shares of Universal Sompo
General Insurance Company limited.

140

e) x { Vx <xx E{x ]b E E E{x E l E xnx xxi :Transactions with associated company namely Universal Sompo General Insurance Company Limited are as follows:

( Ec )
h

/ Particulars

+Vi + /Income Earned

|nk | / Insurance Premium Paid
17.7 {]] |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)

31.03.2010 E lli +{i {]] +v i n E

/ (Amount in Crores)

2009-10

2008-09

5.49

1.90

2.98

0.54

17.7 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 31.03.2010

(. Ec )/(Rs. In Crore)
Vn {]] +v / Existing Lease Period
2009-10

Amount Payable
2008-09

BE +xvE / Not later than one year

36.11
33.75
BE E n il {S +xvE / Later than one year and not later than five years
94.66
78.59
{S E n / Later than five years
37.13
23.78
ii) ix {j E iJ E xi x E Ex ={ {]] E
ii) The total of future minimum sublease payments expected
+iMi |{i EB Vx |ii xxi ={ {]] E
to be received under non-cancellable subleases at the
balance sheet date: Nil
Mix E M : x
iii)
Lease payments recognised in the statement of profit and
iii) vi +v i B x E h +Yi {]]
loss for the period: Rs.60.75 Crores.
Mix : . 60.75 Ec
iv) Sub-lease payments received (or receivable) recognised
iv) vi +v i B x E h +Yi |{i(+l
in the statement of profit and loss for the period: Nil
|{) ={-{]] E Mix :x
B) Financial Lease:
J) k {]] :
Bank is not having any assets under Financial Lease.
E E { k {]] E +iMi E< {k x *
17.8 |i +Vx : J xE (BB) 20 : / Earning Per Share Accounting Standard (AS) 20:
G .

Sl.
No.

Particulars

E.

|i + b<]b +Vx

Basic and Diluted Earning Per Share

2009-10 i
For the year
2009-10

2008-09 i
For the year
2008-09

Rs. 27.01

Rs. 17.21

|i + b<]b +Vx E Mhx / Calculation of Basic and Diluted Earning Per Share
G . h

2009-10 i

Sl.
No.

Particulars

For the year

2009-10

E.

<C] vE E i |nx E stlu Jtt x

Net Profit for the year attributable to Equity Share holders

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

141

2008-09 i
For the year
2008-09

1206.33 Cr.

768.60 Cr.

44.67 Cr.

44.67 Cr.

Rs. 27.01

Rs. 17.21

Rs. 10/-

Rs. 10/-

17.9 + { E i J - J xE (BB) 22
E nx +lMi E i E Vx E { . 11.06
Ec(x) ({U x x . 3.39 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 :

17.9 Accounting for Taxes on Income: Accounting

Standard (AS) 22
During the year, an amount of Rs. 11.05 Crores (Net)
(Previous year net debit Rs.3.39 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:

(. Ec )/(Rs. In Crore)
h
Particulars

At the beginning
of the Year

Adjustment
Add / (Less)

At the close of
the Year

2009-10

2008-09

2009-10

2008-09

2009-10

2008-09

x/NIL

2.61

x/NIL

(2.61)

x/NIL

x/NIL

0.65

0.00

0.58

0.66

1.23

0.65

6.99

1.59

(3.33)

5.40

3.66

6.99

2.12
9.76

0.00
4.20

(2.12)
(4.87)

2.12
5.57

Nil
4.89

2.12
9.76

1.34

1.07

(1.34)

0.27

0.00

1.34

21.29
22.63

12.61
13.68

7.52
6.18

8.69
8.96

28.81
28.81

21.29
22.63

12.87

9.48

11.05

3.39

23.92

12.87

+lMi E +i
Deferred Tax Assets

+E xEnEh i |vx
Provision for Leave Encashment

+E i |vx
Provision for Sick Leave

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
held as Investments

E / Total
+lMi E niB(x)
Deferred Tax Assets (Net)

17.10k +i E { E E +i E {{i + {
J xE (BB) 28 <{] + B] |V x
* |vx E =H xE E +x 31.03.2010 E
E E +x +i E< <{] x + +Yx
i E< i{h i x

17.10

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 31.03.2010 to
any material extent requiring recognition in terms of
the said standard.

17.11

Disclosure in terms of Accounting Standard (AS) 29

on Provisions, Contingent Liabilities and Contingent
Assets:

17.11|vx, +EE niB + +EE +i E v

J xE (BB) 29 E +x |E]Eh

142

ni+ i |vx E Sx (<i ) :

/ Movement of Provision and Contingencies (Closing balance):

(. Ec )/(Rs. In Crore)
h

lli

Particulars

(fU)
(F)
(d)
(D)
(a)
(a)
(A)

31.03.2010

lli

31.03.2009

As on 31.03.2010
751.65

As on 31.03.2009
502.27

251.80

430.30

280.98

277.01

1291.42

737.18

YlveY nu;w tJ"tl / (a) Provision toward NPA

rlJuN vh bqgtm nu;w tJ"tl / (b) Provision for Depreciation on Investment
btlfU ytr;gt nu;w tJ"tl / (c) Provision towards Standard Assets
ytgfUh nu;w tJ"tl / (d) Provision towards Income Tax
ylwMkde ttC fUh / (e) Deferred Tax (Assets) / Liabilities
ylwMkde ttC fUh / (f) Fringe Benefit Tax
yg / (g) Others
/ Total

23.92

12.87

26.04

26.04

641.76

620.07

3267.57

2605.74

18. Customer Complaints:

h / Particulars

2009-10

(a)

E + i Ei E J/No. of Complaints pending at the beginning of the year

(b) E nx |{i Ei E J/No. of Complaints Received during the year
(c) E nx xi E M< Ei E J/No. of Complaints Redressed during the year
(d) E +i i Ei E J/No. of Complaints pending at the end of the year
19. EM

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

20.

ix k E n x V SEi +x {j (B+):
.1294.90 Ec ({U : .3689.17 Ec)*

21

+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 *

22.

{VMi Ji { x{nx i n E +xxi

VE |vx x E M (+O E x). 38.67
Ec ({U 61.93 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 @h i Vx E +iMi Ex u E + E
75% E Mix Ex E il 30.06.2010 iE g< M<
* {j +x Ex E BE +vE Ei 30.06.2010
iE E E SEx E +xi n M< * +i: Vx E
+iMi {j Ex E @h Ji E xE +i x M
*
V +E Z M {U E +Ec E
{x:i +l {x:MEi E M *

24.

25.

2279
2302
85

E{ u {i +vxh /Awards passed by the Banking Ombudsman :

h /Particulars
(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

23.

108

2009-10
Nil
6
4
2

20. Letters of Comfort (LoCs) issued during the Current

Financial Year: Rs.1294.90 Crores (Previous Year:
3689.17 Crores).
21. 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.
22. Estimated amount of contracts remaining to be executed
on capital account and not provided for (Net of Advance)
Rs.38.67 Crores (Previous Year Rs. 61.93 Crores).
23. 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.
24. Under Agriculture Debt Relief Scheme, the last date for
payment of 75% of the overdue portion by the farmers
has been extended up to 30.06.2010. The eligible other
farmers are allowed to repay the amount in one or more
instalments up to 30.06.2010. Hence, the loan accounts
of other farmers, who are eligible under the scheme, have
been considered as standard assets.
25. Figures of previous year have been regrouped or
reclassified wherever considered necessary.

143

AUDITORS REPORT

J{IE E {]
.

To

i E ]{i
1. x <n E E 31 S, 2010 E ix {j, = iJ
E Mx B x J E J{I E , Vx
u J{Ii 20 J+ B 46 b E ,+x
J{IE u J{Ii 1825 J+, lx J{IE
u J{Ii BE n J il Sx li BE |ixv
E E +J{Ii h * u J{Ii
il +x J{IE u J{Ii J+ E Sx E
u i V E E nxn E +x E M *
ix {j il B x J B 441 J+ E
h VxE J{I x E M< * <x
+J{Ii J+ 1.50% +O, 4.96% V, 0.90%
V + il 4.53% V xi * x = iJ
E {i i ix-{j E l Mx xEn | h
E J {I E *

The President of India

2. <x k h E Vn E |vx E *
=kni J{I E +v { <x k h
{ +{x +i H Ex *
3. 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 * E
J{I +i E ` +v *
4. ix {j il B x J EM x +vx
1949 E ii +xS E G: E il J i
EB MB *
5. ={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) (+xS-18) E +x
+i J Ji |] E x/vx + E
il x] Ji +i E x + vx E v ;

2. These financial statements are the responsibility of the

Banks Management. Our responsibility is to express our
opinion on these financial statements based on our audit.

{] 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 *

1. We have audited the attached Balance Sheet of

ALLAHABAD BANK as at 31st March 2010, the Profit and
Loss Account for the year ended on that date annexed
thereto, in which are incorporated the Returns of 20
branches, 46 zonal offices audited by us, 1825 branches
audited by other auditors, one overseas branch audited
by local auditor and one unaudited representative office in
China. The branches audited by us and those audited by
other auditors have been selected by the Bank in
accordance with the guidelines issued to the Bank by the
Reserve Bank of India. Also incorporated in the Balance
Sheet and the Profit and Loss Account are the returns from
441 branches, which have not been subjected to audit.
These unaudited branches account for 1.50% of advances,
4.96% of deposit, 0.90% of interest income and 4.53% of
interest expenses. We have also audited the cash flow
statement annexed to the Balance Sheet for the year ended
on that date.

3. 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 financial statement
presentation. We believe that our audit provides a
reasonable basis for our opinion.
4. 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.
5. 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) (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:

144

(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 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.

(M) E E E il J+ |{i h
J{I E B {{i {< M< *

(c) The returns received from the Offices and Branches

of the Bank have been found adequate for the
purpose of our audit.

(P) ix {j, -x J + xEn |

h |V J xE E +x{ *

(d) In our opinion, the Balance Sheet, Profit and Loss

Account and Cash Flow Statement comply with the
applicable accounting standards.

(R) il k Sx B nB MB
{]Eh E +x il E E lni :

(e) 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)

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 31 S, 2010 E EEV
E B =Si U |ii E E*

(i) The Balance Sheet read with the Significant

Accounting Policies and notes thereon, is a full
and fair Balance Sheet containing the necessary
particulars and is properly drawn up so as to
exhibit a true and fair view of the state of affairs
of the Bank as at 31st March 2010 in conformity
with accounting principles generally accepted in
India.

(ii)

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, in conformity with
accounting principles generally accepted in India,
for the year covered by the account.

(iii)

xEn | h, h u = iJ E
{i i xEn | E B =Si U
|ii Ei *

(iii) The Cash Flow Statement shows a true and fair

view of the cash flow for the year ended on that
date.

Ei bu. E] Bb M
xn JE

For M/S. Venkat & Rangaa

Chartered Accountants

Ei bu. ni E {J Bb E.
xn JE

For M/S. Sudit K Parekh & Co.

Chartered Accountants

Ei bu. {. B. Bb BB]
xn JE

(B B. hJx)
{]x
ni . 26400

(B Exi V)
{]x
ni . 39461

(B {. B. {b)
{]x
ni . 51092

For M/S. PA & Associates

Chartered Accountants

(CA S. Manisekaran)
Partner
Membership No. 26400
Firm ICAI Reg.No : 004597S

(CA Srikant Jilla)

Partner
Membership No. 39461
Firm ICAI Reg.No : 110512W

(CA P S Panda)
Partner
Membership No. 51092
Firm ICAI Reg.No : 313085E

Ei bu. B. + xh Bb E.
xn JE

Ei B. P Bb E.
xn JE

Ei bu. E. B. +O Bb E.
xn JE

For M/S. M. R. Narain & Co.

For M/S. S Ghose & Co.

Chartered Accountants

Chartered Accountants

(B B. Bx. E]x)
{]x
ni . 22993

(B Sxnx S]]{v)
{]x
ni . 51254

(CA M.N. Venkatesan)

Partner
Membership No. - 22993
Firm ICAI Reg.No : 002330S

(CA Chandan Chattopadhay)

Partner
Membership No. 51254
Firm ICAI Reg.No : 302184E

lx / Place : EEi / Kolkata

nxE / Date : 30.04.2010

145

For M/S. K.M. Agarwal & Co.

Chartered Accountants

(B xI M{i)
{]x
ni . 92834

(CA Meenakshi Gupta)

Partner
Membership No. 92834
Firm ICAI Reg.No : 0853N

< n E

ALLAHABAD BANK

31 S, 2010 E lli Ei ix-{j

Consolidated Balance Sheet as on 31st March, 2010

+xS

Particulars

SCHEDULE

{V + niB / CAPITAL & LIABILITIES

{V / Capital
|Ii B +v / Reserves & Surplus
+{JE V / Minorities Interest
V / Deposits
=v / Borrowings
+x niB + |vx / Other Liabilities and Provisions
E / Total
+i / ASSETS
i W E xEn +

lli

/ As on
31.03.2010

(. Ec )(Rs. in Crores)
lli / As on
31.03.2009

446.70

446.70

6517.27

5590.12

2A

Nil

Nil

106050.74

84966.53

5435.48

3848.94

3457.10

2977.21

121907.29

97829.50

7183.78

5115.38

Balances with Banks and Money at Call and Short Notice

1994.99

1521.38

xvx / Investments
@h B +O / Loans & Advances
l +i / Fixed Assets
+x +i / Other Assets
Ex { J / Goodwill on Consolidation
B x Ji E x

38613.33

29825.34

Cash and Balances with Reserve Bank of India

E + M il +{ Sx { n vx

71607.75

58801.80

10

1124.40

1111.46

11

1383.04

1454.14

Nil

Nil

Nil

Nil

121907.29

97829.50

49080.79

46037.46

2944.37

1,726.42

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 ni*

12

The Schedules referred to above form an integral part of the Accounts.

xnE / Directors:
i Ei J / SMT. SUKRITI LIKHI
btunb= i / SHRI MOHAMMAD TAHIR
E. E. bM / SHRI K. K. DOGRA
b. E. E{ /

SHRI DEVESHWER KUMAR KAPILA

b. . EVM /
DR. VASANT BABURAO KAUJALGI
i VMxn E / SMT. JOGINDER KAUR
{. . Mbd / SHRI P. V. GUDIREDDY
ztp.E-=W-Wx + /
DR. SHAKEEL-UZ-ZAMAN ANSARI

su. ve. =qyt

b. E

B. +. xE

+vI B |v xnE

E{E xnE

E{E xnE

J. P. DUA
Chairman & Managing
Director

D.SARKAR
Executive Director

M. R. NAYAK
Executive Director

Y. ce. Ctatgo
|vE (k B J)

B. B. Vx

E |vE (J B J {I)
S. L. JAIN
Assistant General Manager
(Accounts & Audit)

A. B. Bhattacharjee
General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date

Ei . E] Bb M

/
For M/s Venkat & Rangaa
xn JE / Chartered Accountants
B B. hJx / CA. S. Manisekaran
{]x / Partner
m=g;t mk./ M.No. 26400

Ei . ni E {J Bb E./
For M/s Sudit K Parekh & Co.
xn JE / Chartered Accountants

B Exi V / CA. Srikant Jilla

{]x / Partner
m=g;t mk./ M.No.39461

Ei . B. +. xh Bb E.

Ei . B P Bb E.

Ei . { B Bb BB]
/ For M/s PA & Associates

B xn JE / Chartered Accountants
B { B {b / CA. P S Panda
{]x / Partner
m=g;t mk./ M.No. 51092

Ei . E. B. +O Bb E.

For M/S M. R. Narain & Co.

/ For M/S S Ghose & Co.

/ For M/S K.M. Agarwal & Co

xn JE / Chartered Accountants
B B. Bx. E]x./ CA. M N Venkatesan
{]x / Partner

xn JE / Chartered Accountants
B Sxnx S]]{v / CA. Chandan Chattopadhay
{]x / Partner

xn JE / Chartered Accountants
B xI M{i / CA. Meenakshi Gupta
{]x / Partner

m=g;t mk./ M.No. 22993

m=g;t mk./ M.No. 51254

m=g;t mk./ M.No. 92834

lx / Place : EEi/Kolkata
nxE / Date : 30.04.2010

146

< n E

ALLAHABAD BANK

31 S, 2010 E {i nu;w mburfU; x J

Consolidated Profit & Loss Account for the year ended 31st March, 2010

+xS

Particulars
I.

II.

Schedule

+ / 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 +

(. Ec )(Rs. in Crores)
xi / Year ended
xi / Year ended
31.03.2010

31.3.2009

13
14

8371.95
1526.39
9898.34

7364.81
1151.25
8516.06

15
16

5718.16
1620.94
1345.10
8684.20

5205.87
1400.12
1132.05
7738.04

14.32

12.45

1228.46

790.47

1228.46

790.47

217.72
1446.18

192.46
982.93

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;)

305.00
591.97

193.00
441.55

Interim / Proposed Dividend (Including Tax on Dividend)

287.44

130.66

261.77
1446.18
27.50

217.72
982.93
17.70

Share of earnings/loss in Associates

+{JE V P]x { E Ei x /(x)

Consolidated Net profit/(loss)
for the year before deducting Minorities Interest
P]B : +{JE V / Less: Minorities Interest

r i Ei /(x) /
Consolidated profit/(loss) for the year attributable to the group

Vc: r Ei /(x) +Oxi

Add: Brought forward consolidated profit/(loss)
attributable to the group
E / Total
III.

Ei ix {j +Oxi
Balance carried over to consolidated Balance Sheet
E / Total
|i +Vx / Earnings per Share
xnE / Directors:
i Ei J / SMT. SUKRITI LIKHI
btunb= i / SHRI MOHAMMAD TAHIR
E. E. bM / SHRI K. K. DOGRA
b. E. E{ /

SHRI DEVESHWER KUMAR KAPILA

b. . EVM /
DR. VASANT BABURAO KAUJALGI
i VMxn E / SMT. JOGINDER KAUR
{. . Mbd / SHRI P. V. GUDIREDDY
ztp.E-=W-Wx + /
DR. SHAKEEL-UZ-ZAMAN ANSARI

su. ve. =qyt

b. E

B. +. xE

+vI B |v xnE

E{E xnE

E{E xnE

J. P. DUA
Chairman & Managing
Director

D.SARKAR
Executive Director

M. R. NAYAK
Executive Director

Y. ce. Ctatgo
|vE (k B J)

B. B. Vx

E |vE (J B J {I)
S. L. JAIN
Assistant General Manager
(Accounts & Audit)

A. B. Bhattacharjee
General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date

Ei . E] Bb M

/
For M/s Venkat & Rangaa
xn JE / Chartered Accountants
B B. hJx / CA. S. Manisekaran
{]x / Partner
m=g;t mk./ M.No. 26400

Ei . ni E {J Bb E./
For M/s Sudit K Parekh & Co.
xn JE / Chartered Accountants

B Exi V / CA. Srikant Jilla

{]x / Partner
m=g;t mk./ M.No.39461

Ei . B. +. xh Bb E.

Ei . B P Bb E.

Ei . {. B. Bb BB]
/ For M/s PA & Associates

B xn JE / Chartered Accountants
B { B {b / CA. P S Panda
{]x / Partner
m=g;t mk./ M.No. 51092

Ei . E. B. +O Bb E.

For M/S M. R. Narain & Co.

/ For M/S S Ghose & Co.

/ For M/S K.M. Agarwal & Co

xn JE / Chartered Accountants
B B. Bx. E]x./ CA. M N Venkatesan
{]x / Partner

xn JE / Chartered Accountants
B Sxnx S]]{v / CA. Chandan Chattopadhay
{]x / Partner

xn JE / Chartered Accountants
B xI M{i / CA. Meenakshi Gupta
{]x / Partner

m=g;t mk./ M.No. 22993

m=g;t mk./ M.No. 51254

m=g;t mk./ M.No. 92834

lx / Place : EEi/Kolkata
nxE / Date : 30.04.2010

147

< n E
ALLAHABAD BANK

Ei xEn | h
Consolidated Cash Flow Statement

(. Ec )(Rs. in Crore)
h / Particulars

2009-10

2008-09

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.

8371.95

+x + / Other Income
P]B: / Less:
E nx V { |nk V /

1521.71

7364.81
9893.66

1146.32

8511.13

Interest paid during the year on

Deposits

5341.86

4885.40

|vx B +EEi+ i {Sx

Operating Expenses including
Provisions & Contingencies

2966.04

Vc: / Add:
l +i { / Depreciation on Fixed Assets
{Sx Vi xEn
({SxMi +i + ni+ {ix {)
a.

8307.90

2532.17

7417.57

62.78

56.33

1648.54

1149.89

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.

21084.21
337.98

13350.83
21422.19

577.48

13928.31

Decrease / Increase in Assets

+O / Advances
x / Investments
+x +i / Other Assets
{SxMi Miv x xEn | (E+J+M)

(12805.95)

(9080.79)

(8802.31)

(6255.55)

71.10

(21537.16)

255.77

(15080.57)

Net Cash Flow from

Operating Activities (a+b+c)

1533.57

x Miv xEn |

(2.37)

Cash Flow from Investing Activities

l +i E G/x{]x / Sale/disposal of fixed assets

l +i E G / Purchase of fixed assets

148

0.94

1.00

(72.08)

(95.61)

Ei xEn | h (V...) / Consolidated Cash Flow Statement (Contd.)

h / Particulars

2009-10

2008-09

J x Miv x xEn |
B

Net Cash Flow from Investing Activities

k{h Miv xEn |

Cash Flow from Financing Activities

=v / Borrowings
=v { V / Interest on Borrowings
(E i) / Dividends (including tax)
]-ii b E xM B n b /
Issue of Tier-ii Bonds & Perpetual Bonds

(71.14)

(94.61)

486.54
(376.30)
(130.66)

(854.97)
(320.47)
(182.92)

1100.00

1050.00

k{h Miv Vi rlJ xEn

Net Cash generated from Financing Activities

E nx E xEn | (E+J+M)

1079.58

(308.36)

Total Cash Flow during the year (A+B+C)

2542.01

(405.34)

5115.38

6288.86

E + xEn + xEn i

Cash and Cash equivalent at the

beginning of the year

i W E E vtm xEn il
Cash and Balances with RBI

E + M il +{ Sx { n vx
Balances with Banks and Money
at Call and Short Notice

E / Total
E +i xEn + xEn i

Cash and Cash equivalent at the

1521.38

753.24

6636.76

7042.10

7183.78

5115.38

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

1994.99

1521.38

E / Total
E nx E xEn | (R-P)

9178.77

6636.76

Total Cash Flow during the year (E-D)

2542.01

(405.34)

xnE / Directors:
i Ei J / SMT. SUKRITI LIKHI
btunb= i / SHRI MOHAMMAD TAHIR
E. E. bM / SHRI K. K. DOGRA
b. E. E{ /

SHRI DEVESHWER KUMAR KAPILA

b. . EVM /
DR. VASANT BABURAO KAUJALGI
i VMxn E / SMT. JOGINDER KAUR
{. . Mbd / SHRI P. V. GUDIREDDY
ztp.E-=W-Wx + /
DR. SHAKEEL-UZ-ZAMAN ANSARI

su. ve. =qyt

b. E

B. +. xE

+vI B |v xnE

E{E xnE

E{E xnE

J. P. DUA
Chairman & Managing
Director

D.SARKAR
Executive Director

B. B. Vx
E |vE (J B J {I)
S. L. JAIN
Assistant General Manager
(Accounts & Audit)

A. B. Bhattacharjee
General Manager
(Finance & Accounts)

il E {] E +x / As per our report of even date

Ei . E] Bb M

/
For M/s Venkat & Rangaa
xn JE / Chartered Accountants
B B. hJx / CA. S. Manisekaran
{]x / Partner
m=g;t mk./ M.No. 26400

Ei . ni E {J Bb E./
For M/s Sudit K Parekh & Co.
xn JE / Chartered Accountants

B Exi V / CA. Srikant Jilla

{]x / Partner
m=g;t mk./ M.No.39461

Ei . B. +. xh Bb E.

lx / Place : EEi/Kolkata
nxE / Date : 30.04.2010

M. R. NAYAK
Executive Director

Y. ce. Ctatgo
|vE (k B J)

Ei . B P Bb E.

Ei . { B Bb BB]
/ For M/s PA & Associates

B xn JE / Chartered Accountants
B { B {b / CA. P S Panda
{]x / Partner
m=g;t mk./ M.No. 51092

Ei . E. B. +O Bb E.

For M/S M. R. Narain & Co.

/ For M/S S Ghose & Co.

/ For M/S K.M. Agarwal & Co

xn JE / Chartered Accountants
B B. Bx. E]x./ CA. M N Venkatesan
{]x / Partner

xn JE / Chartered Accountants
B Sxnx S]]{v / CA. Chandan Chattopadhay
{]x / Partner

xn JE / Chartered Accountants
B xI M{i / CA. Meenakshi Gupta
{]x / Partner

m=g;t mk./ M.No. 22993

m=g;t mk./ M.No. 51254

m=g;t mk./ M.No. 92834

149

+xS

SCHEDULE

lli

/ As on
31.03.2010

Particulars

(. Ec )

(Rs. in Crore)

lli

/ As on
31.03.2009

(. Ec )

(Rs. in Crore)

+xS 1 - {V
SCHEDULE 1 - CAPITAL

|vEi {V
Authorised Capital

3000.00

1500.00

446.70

446.70

446.70

446.70

446.70

446.70

0.00

0.00

0.00

0.00

446.70

446.70

1627.39

1322.39

1219.96

1214.86

70.31

70.31

xMi {V (44,67,00,000 |iE . 10)

Issued Capital (44,67,00,000 Shares of Rs.10.each)

+nk {V (44,67,00,000 |iE . 10)

Subscribed Capital (44,67,00,000 Shares of Rs.10 each)

M M< {V (44,67,00,000 |iE . 10)

Called-up Capital (44,67,00,000.Shares of Rs.10 each)

P]B: +nk M / Less: Calls unpaid

Vc: Vi / Add: Forfeited shares
E / Total

+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

720.00

720.00

2617.84

2052.02

261.77

210.54

6517.27

5590.12

NIL
NIL

NIL
NIL

NIL

NIL

+xS 2B - +{JE V
SCHEDULE 2A - MINORITIES INTEREST

-+xM v E +ii +x E il E +{JE V

Minority interest at the date on which the parent
subsidiary relationship came into existence
{i r / E / Subsequent increase / decrease
ix {j E iJ E +{JE V /
Minority interest on the date of Balance Sheet

+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)
F/ 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)
150

57.14

108.26

8258.40

6514.64

28271.18

22774.39

912.93
68551.09

1056.31
54512.93

106050.74

84966.53

105768.64

84805.08

282.10
106050.74

161.45
84966.53

+xS

SCHEDULE

lli

/ As on
31.03.2010

Particulars

(. Ec )

(Rs. in Crore)

lli

/ As on
31.03.2009

(. Ec )

(Rs. in Crore)

+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.
(v) Mh @h- +{ ]-II {V / Subordinated Debt - Upper Tier II Capital
(vi) Mh @h- ]-II {V / Subordinated Debt - Tier II Capital
II. i E =v / Borrowings outside India
E / Total (I + II)
={H I + II i |ii =v
Secured borrowings included in I and II above

0.00
0.00
12.84

0.00
0.00
74.19

300.00
1000.00
2711.90
1410.74
5435.48

150.00
500.00
2261.90
862.85
3848.94

0.00

0.00

394.27
185.39
410.07
23.97
2443.40
3457.10

282.19
204.75
323.99
12.87
2153.42
2977.22

+xS 5 - +x niB B |vx

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
I. n / Bills payable
II. +i-Ex Vx (x) / Inter -office adjustments (net)
III. ={Si V / Interest accrued
VI. +lMi E niB / Deferred Tax Liabilities
V. +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) 379.88
II. i W E / Balances with Reserve Bank of India
(i) S Ji / In Current Account
6803.90
(ii) +x Ji / In Other Accounts
0.00
E / Total (I & II)
7183.78

359.81
4755.57
0.00
5115.38

+xS - 7 E +i + M il +{ Sx { n vx
SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE
I. i / In India
(i) E +i / Balances with banks
(a) S Ji / In Current accounts
340.76
(b) +x V Ji / In Other Deposit accounts
303.96
(ii) M il +{ Sx { n vx / Money at call and short notice
(a) E / With banks
0.00
(b) +x lyt / With other institutions
0.00
E / Total (i & ii)
644.72
II. i E / Outside India
(a) Stq

J;t / 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)

151

386.38
20.00
0.00
0.00
406.38

429.82

475.90

0.00
920.45
1350.27

0.00
639.10
1115.00

1994.99

1521.38

+xS

SCHEDULE

lli

/ As on
31.03.2010

Particulars

(. Ec )

(Rs. in Crore)

lli

/ As on
31.03.2009

(. Ec )

(Rs. in Crore)

+xS 8 - xvx

SCHEDULE 8 -INVESTMENTS
I. i xvx / Investment in India in

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)
E / Total
II. i E xvx / Investments outside India in
(i) E |iigtk (lx trvfUhKtuk i)
(i)

Government securities ( including local authorities)

(ii)

21383.25

138.27
469.21

293.13
264.31

1643.29

2250.00

252.47

235.05

5127.15

5399.60

38613.33

29825.34

0.00

0.00

0.00

0.00

0.00

0.00

+xrdgt xvx
Investment in Associates

+x xvx / Other Investments

E / Total
E M / Grand Total (I) & (II)
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
(iii)

III.

30982.94

0.00

0.00

38613.33

29825.34

38869.25
255.93

30258.54
433.20

38613.32

29825.34

0.00

0.00

0.00

0.00

0.00

0.00

2184.15

1831.90

29805.32

24298.52

+xS 9 - +O
SCHEDULE 9 -ADVANCES

fU/A.

G E MB B xB MB / Bills purchased and discounted

xEn @h, +bC] + M { |in @h

(i)

(ii)

Cash credits, overdrafts and loans repayable on demand

n @h / Term loans
39618.28
E / Total
71607.75
F/B. (i) i +i u |ii/ Secured by tangible assets
57598.75
( @h { +O i) / (includes advances against book debts)
(ii) E/E |ii u Ii / Covered by Bank/ Government Guarantees1705.80
(iii) Vxi / Unsecured
12303.20
E / Total
71607.75
d/C. I. i +O / Advances in India
(I) |lEi |{i Ij / Priority sector
24279.35
(ii) VxE Ij / Public sector
9147.86
(iii) E / Banks
0.00
(iv) +x / Others
37334.89
E /Total
70762.10
(iii)

152

32671.38
58801.80
45838.62
1909.51
11053.67
58801.80
20435.02
6831.45
207.81
30840.59
58314.87

+xS

SCHEDULE

lli

/ As on
31.03.2010

Particulars

(. Ec )

(Rs. in Crore)

d/C. 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

lli

/ As on
31.03.2009

(. Ec )

(Rs. in Crore)

373.62

0.00

68.04

43.59

334.21

0.00

69.78
845.65
71607.75

443.34
486.93
58801.80

999.93
1.45
0.00
0.00
65.00
936.38
1.11

979.80
17.07
0.00
0.00
57.80
939.07
0.00

581.03
70.63
0.83
465.58
185.25

503.01
78.53
0.51
410.30
170.73

At cost as on 31st March of the preceding year

1.66

4.93

Additions during the year including adjustments

0.00

0.00

0.11
-0.10
1.65
1124.40

0.00
3.27
1.66
1111.46

0.00
1124.40

0.00
1111.46

0.00
492.82

0.00
468.31

238.35
8.28

321.31
8.66

0.03
0.00
643.57
1383.04

0.03
0.00
655.83
1454.14

+xS 10 - l +i

SCHEDULE 10 - FIXED ASSETS

I. { / Premises

{i E 31 S fUe r:r; fuU ylwmth Mi {

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
IIA. {]] { n M< +i / Leased Assets

{i E 31 S E li E +x Mi {

Vx i E nx {vx
|vx i E nx E]i

Deductions during the year including provisions

+V E iJ iE +I / Depreciation to date
E / Total IIA
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

SCHEDULE 11 - OTHER ASSETS

I. +i E Vx (x) / Inter-Office Adjustments (net)
II. ={Si V / Interest accrued
III. +O { nk E/i { E] M E
Tax paid in advance/tax deducted at source
IV. Jx O B ]{ / Stationery and stamps
V. n E i] |{i E M< M-EE +i
Non-banking assets acquired in satisfaction of claims
VI. +lMi E +i / Deferred Tax assets
VII. +x / Others
E /Total

153

+xS

SCHEDULE

lli

/ As on
31.03.2010

Particulars

(. Ec )

(Rs. in Crore)

lli

/ As on
31.03.2009

(. Ec )

(Rs. in Crore)

+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

937.27

984.12

0.16

0.16

37065.89

36888.90

(a)

4429.34

3459.05

(b)

446.63

217.45

6162.82

5259.88

III.

+i: nii x E B ni / Liability for partly paid investments

E n x n+ E Eh ni

IV.

Liability on account of outstanding forward exchange contracts

OE E + n M< |ii/Guarantees given on behalf of constituents

II.

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

38.68

84.12

49080.79

46893.68

2944.37

1726.42

6397.91
1946.55

5494.47
1849.36

25.17
2.32
8371.95

10.74
10.24
7364.81

655.46

480.92

0.03

0.04

Less: Loss on sale of land, buildings and other assets

x xnx { / Profit on exchange transactions
P]B: x xnx { x / Less: Loss on exchange transactions
IV. xvx (x) fUu G { / Profit on sale of investments(net)
P]B: xvx E G x / Less: Loss on sale of investments
V. xvx E {xEx { / Profit on revaluation of investments
P]B : xvx E {xEx { x/ Less: Loss on revaluation of investments
VI. a) {]]-k + / Lease finance income
b) {]] |vx E / Lease management fee
c) +in | / Overdue charges
d) {]] E |{ vh V / Interest on lease rent receivables
VII. v + / Miscellaneous income

-0.59
58.13
-9.64
764.97
-186.79
0.00
-0.01
0.00
0.00
0.00
0.00
244.83

0.00
45.28
-0.90
687.13
-113.82
0.00
0.00
0.00
0.00
0.00
0.00
52.60

E / Total

1526.39

1151.25

E /Total
Oh i / Bill for collection

+xS 13 - +Vi V B
SCHEDULE 13 - INTEREST AND DIVIDENDS EARNED
I. +O/ { V/]] / Interest/discount on advances/bills
II. x { + / Income on investments
III. 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

+xS 14 - +x +
SCHEDULE 14 - OTHER INCOME
I. Ex, x + n / Commission, exchange and brokerage
II. , x il +x +i E G {
Profit on sale of land, buildings and other assets

P]B: , x il +x +i E G { x
III.

154

+xS

SCHEDULE

lli

/ As on
31.03.2010

Particulars

(. Ec )

(Rs. in Crore)

lli

/ As on
31.03.2009

(. Ec )

(Rs. in Crore)

+xS 15 - E M V
SCHEDULE 15 - INTEREST EXPENDED
I.
II.

V { V / Interest on deposits
i W E/+i-E =v { V

5341.86

Interest on Reserve Bank of India/ inter-bank borrowings

4885.40

39.73

64.28

336.57

256.19

5718.16

5205.87

1012.29

874.28

176.76

135.97

20.78

19.06

21.65

14.23

62.78

56.33

+i { +I/Depreciation on Leased Assets

0.00
xnE E , k + / Directors fees, allowances and expenses
1.05
VII. J{IE E + /Auditors fees and expenses
16.16
(J J{IE E + i) / (including branch auditors fees and expenses)
VIII. v | / Law charges
6.99
IX. bE, i, ]x +n / Postage, telegrams, telephones, etc.
23.66
X. i + +xIh / Repairs and maintenance
24.43
XI. / Insurance
78.91
XII. J E {vx, n E< /Amortisation of Goodwill, if any
0.00
XIII. +x /Other expenditure
175.48
E /Total
1620.94

0.00

III. +x / Others

E /Total

+xS 16 - {Sx
SCHEDULE 16 - OPERATING EXPENSES
I.

ES E Mix il =xE B |vx

Payments to and provisions for employees

c, E B x / Rent, taxes and lighting

III. ph + Jx O / Printing and stationery
IV. Y{x + |S /Advertisement and publicity
V.(E) {]] +ik <i E E {{k { +I
II.

(a) Depreciation on Banks property other than Leased Assets

V.(J)(b) {]]
VI.

1.07
14.37
8.51
22.80
24.57
75.31
0.00
153.62
1400.12

+xS 17 - + E + /
SCHEDULE 17 - Share of Earnings

+xM x / +xM E
Loss in Associates / 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
gqrlJmot mtuvtu slht Rkgtuhm fUkvle .
Universal Sompo General Insurance Company Ltd

E / TOTAL
Rttntct= cfU fUt ykN / Allahabad Banks share
{U vi Vx / Adjustment relating to earlier years
E nx Vi / Considered during the year
* <n { Oh E E l x /
* Since amalgameted with Allahabad UP Gramin Bank

155

7.37

10.83

36.03

30.27

20.69

6.56

13.82

0.00

-44.79

-13.00

33.12

34.66

13.83

12.78

0.48

-0.33

14.32

12.45

Relevant Principal Accounting Policies on the

Consolidated Accounts

Ei J+ vi |ME
J J xi
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 *
2. J+ E i Ex E +v
Mx k h |V vE rJrlgtbfU |vx, J
xE il +xl =Ji E UcE, i xi& Ei
J ri il |G+ E iE { +x{x EE
x M *
3. 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 E +x i EB MB *
(ii)

xxJi +xM E J xE 21 Ei k h
E +x Ei E M :

1.
(i)

General:
The financial statements have been prepared and presented 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.
2. Basis of preparation
The accompanying financial statements have been prepared
to comply, in all material aspects, with applicable Statutory /
Regulatory provisions, Accounting Standards and Generally
Accepted Accounting Principles and practices prevailing in
India except as otherwise stated.
3.
(i)

Consolidation procedure:
The Consolidated financial statements of the Bank, its
subsidiary and its associates has been prepared 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
(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 *
n/x

Name of the Entity

Country / Residence

Relationship

n Oh E

|Vi E

Sharda Gramin Bank

India

Sponsor Bank

<n { Oh E

|Vi E

India

Sponsor Bank

Universal Sompo General Insurance Company Ltd.

India

Associate

BB+< (<b)

mkgw; Wb

x { Vx < E{x ]b

ASREC (India) Ltd.

BB]

India

Joint Ventures

4. 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

100%
100%

(iii) The following associates and Joint ventures has been

consolidated as per the Accounting Standard 23,
Accounting for Investments in Associates in Consolidate
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

Allahabad UP Gramin Bank.

i i
Ownership Interest

4.

i i
Ownership Interest
35%
35%
35%
35%
30%
30%
27.04 %
27.04 %

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 an associate company
which is in the business of non-life insurance. The subsidiary
and associate company follow accounting polices prescribed

156

J xi E {x Ei * <x +M xn] x E
M CE Oi: k h E {|I x i{h
x *
5. x
(i) E E x vtuxoVUturgtu E i V E E n xn
E +x{ ix M, l, {{Ci i J M, G i
={v il { i J M MEi E M*

by their governing regulators. These have not been specified

separately as these investments are not material in the context
of the overall financial statements.

=H hi ix M E +xiMi x E |E]x U ,
l: (E) E |ii (J) +x +xni |ii
(M) (P) bxS B b (R) +xM / H =t
x il (S) +x (hVE {j, S+ b fUe gqrlx
+n) E +iMi E M *

(ii) The disclosure of investments under all the three

categories mentioned above is made under six groups
viz. (a) Government securities (b) Other approved
securities (c) Shares (d) Debentures & Bonds (e)
Investment in Subsidiaries/joint ventures and (f) Others
(commercial paper, units in Mutual Funds etc).

(ii)

Investments

(i)

The investment portfolio of the Bank is classified in

accordance with RBI guidelines under three categories
viz. Held to Maturity, Available for Sale and Held for
Trading.

(iii) {{Ci

(iii) 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:

Diminution 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.

Diminution, other than temporary, in the value of

investments in subsidiaries/joint ventures.

(iv)

(v)

(vi)

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*

5.

+xM / H =t x E +l E UcE
tm>
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 *
{ i J M E { MEi x E E
+i { G{ {xEx E Vi il {h
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 *
+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*

x E +vOh E Mi:
(E) +nk |ii E |{i |ix / Ex il
|E E E x *
(J) Ex, n il ]{ b] E UcE*
(viii) -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 *
(vii)

(iv) 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.
(v) Investments classified as Held for Trading are revalued
scrip-wise at monthly 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.
(vi) 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) Cost of acquisition of investments:
a.

Is net of incentives/commission and front-end fees

received in case of securities subscribed.

b.

Excludes commission, brokerage and stamp duty.

(viii) 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.

157

(ix)

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 *

(ix) 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.

(x)

E E r=Ntrl=uNo t fuU +x z h E i{ E
xxx E Vi :
l 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 *

(x) As per the RBI guidelines, the different categories of

Swaps are valued as under:

]bM {
]bM { x-nx E k rhg nV {ix E
l W Sxi E Vi *
6. l +i /
(i) {h i il {]] { B MB { i +x +S
+i E {{ M i Mi i< M< , Ei{ { E Uc E
VxE {xEx i< M< * {xx i +i E
Sx |hr {ri E +v { E Vi * {x x {{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 *

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.
Gain 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.

(ii) +x

+i E +xiMi xh +v E nx B MB
{VMi E E M *
(iii) 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 E M *
(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 *
7. +MS +i (E{] }])
(i) E{] i }] V }] E x x S
V Ei vi b E BE +MS + il =

Hedge Swaps

Trading Swaps

Trading Swap transactions are marked to market with

changes recorded in the financial statements.
6.

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.
7.

Intangible Assets (Computer Software)

(i)

Software for a computer that cannot operate without that

specific software is an intangible part of related hardware

158

+S +i Z M * V }] vi b E
+z M x , E{] }] E +MS +i Z
M *
(ii) 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>
8. 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) + E il V E E { { V + E,
vi E xvh +vE u {i +n E i J
E M *
(iii) VUtutuyptl mtJosrlfU rldob fUtu yt:rd; htsJ gg btlt
Vi ni ytih Rmu vtka JMtu b vrhNtur"; rfUgt Vi ni*
9. n p r x-nx :
9.1 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 {*
l

(ii)

l
(iii)

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 *
{h x +i E -x tuJ M *
+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*

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.
8.

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.
9.

Transactions involving Foreign Exchange:

9.1 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:
l

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.

All resulting exchange differences are accounted for in

Profit & Loss Account.

(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.

159

9.2 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
r;btrn yk; n { {ii E M *

9.2 Branches in India

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 *

The resultant profit/loss on revaluation of forward exchange

contracts and NOSTRO accounts is taken to revenue as per
FEDAI guidelines.

10. +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 *

10. Advances:

(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).

(ii) Income and Expenditure items relating to foreign currency

are converted using the exchange rate prevailing as on
the date of transaction.
(iii) Acceptances, endorsements and other obligations
including guarantees are stated at FEDAI advised rates
prevailing at the end of each quarter.

(i)

Advances are classified as performing and non-performing

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.

ES :
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 *

11. Employee Benefits:

(ii)

nPEE xvi ES E ni - {x (x<),

{x({ 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(x<) E
xvE + +x <E B |vx E Vi
*

(ii) Liability towards long term defined employee benefits Pension (New), Pension (Old), Gratuity, Leave
Encashment, Leave Fare Concession and Sick Leave are
determined 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 (New) and Gratuity, and provided for in other
cases.

(iii)

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 *

(iii) In respect of Provident Fund, the contribution for the period

is recognized as expense and charged to Profit & Loss
account.

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 *

(iv) 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.

11.
(i)

(iv)

(iv)

(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.

(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.

160

12. {]]
E u |{i EB E ={Si +v { -x J +Yi
E Vi *

12. Lease

{Sx {]] { M< +i i {]] E Mix -x

J E { +Yi E Vi *
13. |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] E |M E E Vi *

Lease payments for assets taken on operating lease are

recognized as an expense in the profit and loss account.

14. + { E

Rentals received by the Bank are recognized in the profit and

loss account on accrual basis.

13. 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.
14. Taxes on Income

(i)

E i |vx S E (xxi E{E E-] i) +

+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 fUtlqlt + E n
fUt |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*

(i)

(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>

(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.

161

Provision for tax is made both current Tax (including

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.

NOTES ON ACCOUNT TO CONSOLIDATED

FINANCIAL STATEMENTS

Ei k h {
J ]{{h
1. (i)

i V E ( E) E nxn E +x{ ={V

il +x{V +O i {{i |vx E M *

(ii)

E E k li E Vi Ex E =q 31.03.2010
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
31.03.2010 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 30.09.2009
iE E +v E +i J J E x il V |]
E {lCEh il 31.03.2010 iE E E E {h
x V E { , +i: E< |vx +{Ii x *

2. (i)

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)

3. ni z xE xh { S Ex E n
+E i E u .1322.93 Ec ({U . 753.18
Ec) (+lMi E i) E |vx {{i x M*
4. (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
{ E Vi * {xEx E Eh . 4.68 Ec
(Mi . 4.93 Ec) E +iH E {V
+Ii +ii E +xS .14 n (vii) +x
+ E +iMi v + n M *

V Jb E Mi ={v x , B +I
Jb il x E Mi { xvi E M *
(iii) 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) *
J. +xn E, x<n BE {]]vi {k VE
Mi ..23 Ec ( {U . 0.31 Ec E
+xnE, x< n + b Ex x< n li
n {k vi l)
(ii)

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 Crores
(Previous Year Rs.48.00 Crores) is held as at 31.03.2010
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 31.03.2010. 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 30.09.2009 and remaining
outstanding as on 31.03.2010 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 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.
3. The provision for income tax (including deferred tax)
aggregating to Rs.1322.93 Crores (previous year Rs. 753.18
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 premises is worked out each
year on its written down value. Additional depreciation of
Rs.4.68 Crores (previous year Rs.4.93 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).
(ii) Depreciation has been charged on composite cost of
Land and Building, where cost of land is not available.
(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.

162

(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. 0.23 Crores (previous year
Rs.0.31 Crores pertaining to 2 properties situated at
Anand lok, New Delhi & Defence Colony, New Delhi).

(iv)

(v) Other Assets include int]angible assets, details of which

are as under :
(. Ec ) / (Rs. in Crore)

+i +i i +x +i E h xxi :-

h /

Particulars

+l \ Opening Balance
E nx {vx \ Additions during the year
E nx {vi \ Amortized during the year
<i \ Closing Balance

2009-10

2008-09

12.38

12.85

10.04

2.73

2.37

3.20

20.05

12.38

.0.44 Ec (Mi .0.44 Ec) E +Ei E

x E v E E + G{/]E] |{i Ex
*
, {ix bS il <C] Vc S+ b/
S E{] b E x] i E {I +O
E x . 849.82 Ec (Mi . 657.24Ec)
*

5. (i) 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.

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 *
(iv) V E i{h J xi J 3(C)(i), =Ji ,
b ] S] h E E nx {vi
|ii E +Ei E >{ . 112.32 Ec (Mi
.91.30 Ec) E +iH +Vx Mi il V x
{ + P]E ..E E xnx -x Ji
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 +{x |vEi {V E .1500 Ec
gE .3000 Ec E * Ei{ ]Ei E E
|vEi {V gx E v nxE 10 x 2009 E i
E E +vSx E +x E M* r E +xh
ix |vEi {V .10/- |i E 150 Ec
<C] + |vEi {V E MEh |vx
u l xvi E VBM*

(iii) As per RBI guidelines, an amount of Rs. 9.78 Crores

(Previous Year Rs.228.70 Crores) being an amount
equivalent to post tax profit on sale of Held to Maturity
category securities is transferred to Capital Reserve
Account.

5. (i)

(ii)

(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.849.82 Crores (Previous year Rs. 657.24
Crores).

(iii)

(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.112.32 Crores
(Previous year Rs.91.30 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.
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 increased its authorized capital
from Rs. 1,500 Crores to Rs. 3,000 Crores. This has been
pursuant to Govt. of India notification dated 10th November,
2009 enhancing the authorized capital of certain nationalized banks. Pursuant to the enhancement, the current authorized capital includes 150 Crores of equity shares of Rs.
10/- each and the classification of the balance authorized
capital will be determined by the management in due course.

8. E n x, E x 8.45% |.. E n 120 E +li 4

+Mi 2019 E {{C x +v i .450 Ec E
+|ii Mh @h ]** V IX b V]B , 8.58% |i
E n 15 +li 10 E n M E{ E l 18 n
2024 E {{C x +v i . 500 Ec E +{ ] II
V b, + 9.08% |i E n . 150 Ec E <z]
{{ S+ b ] <]] (+<{b+<) V ** {U E x
9.28% |i E n . 500 Ec E +|ii +{ ] II
V b, 9.23% |i E n . 400 Ec E Mh @h
V VIII b + 9.20% |i E n . 150 Ec E
<z] {{ S+ b ] <]] (+<{b+<) V * V]B*

8. During the year, the bank has raised unsecured subordinated debt Tier II Series IX Bond of Rs. 450.00 Crores @
8.45% for a period of 120 months i.e. maturing on 4th August 2019, Upper Tier II Series Bonds of Rs. 500.00 Crores
@ 8.58% for a period of 15 years i.e. maturing on 18th December 2024 with Call Option after 10 years and Innovative Perpetual Debt Instrument (IPDI) Series II of Rs. 150.00
Crores @ 9.08%. Previous year Bank raised Unsecured
Upper Tier II Series I Bond to the tune of Rs. 500 Crores @
9.28%, Subordinated Debt Series VIII Bond of Rs. 400.00
Crore @9.23% and Innovative Perpetual Debt Instrument
(IPDI) Series I of Rs.150.00 Crore @ 9.20%.

9.+O +i-E Mi |h{j E Eh . x (Mi

. 480.00 Ec) E *

9. Advances include Rs.NIL (Previous year Rs. 480.00 Crores)

on account of Inter Bank Participation Certificates.

163

10. J xE E +x{ +x{x

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
*
10.1 J xE 5 : +v i x +l x, { E
n il J xi {ix

10. 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.
10.1. 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 ) / (Rs. in Crore)

{ vi + + E h xxx :

h \

Particulars

+ \ Income
\ Expenditure

x / Net

2009-10

2008-09

(9.34)
3.03
(12.37)

5.27
8.09
(2.82)

10.2 ix vx E +i { nB Vx iE ix E E
+xxi ni i k 2009-10 E nx ix
E i . 153 Ec ({U . 122 Ec) E
|vx E M * <E +iH E{h xi E {
{x ni i .47 Ec E inl |vx E M *

10.2. The Bank has accounted for Employees benefits as

per Accounting Standard (AS)-15 (Revised). Pending
Finalisation of wage revision, a provision of Rs. 153
Crores during the financial year 2009-10 (previous year
Rs. 122 Crores) towards estimated liability of wage arrears has been made. Further, as a prudent policy, an
ad-hoc provision of Rs. 47 Crore has been made towards pension liability.

10.3 vi {IE E |E]Eh - J xE (BB) 18

vi {] E S B xnx
E) vi {] E x, E E l =xE v il EB MB
xnx*

10.3 Related Party Disclosures Accounting Standard (AS)

18: List of Related Parties and Transactions

GE

{nx

Sl.No.

Name

Designation

a) The names of the related parties, their relationship with

the bank and transaction effected.

{v
2009-10

Existing Directors as on 31.3.2010

1
V. {. =qyt
+vI B |v xnE
Shri J. P. Dua
Chairman & Managing Director
2

b. E

E xnE

B. +. xE

E xnE

|n +EE

|v xnE B <+ + E <x .

Shri D. Sarkar
Shri M. R. Nayak

Shri Prasad Akolkar

. {. xnE

\ Ex Directors

Executive Director
Executive Director
Managing Director and CEO
of AllBank Finanace Ltd.

E. +. Ei

i{ +vI B |v xnE

B. . Vx

i{ +vI B |v xnE

+. Bx.

i{ +vI B |v xnE

B. E. M

i{ E{E xnE

E. E. +O

i{ E{E xnE

1
2
3

Shri K. R. Kamath
Shri A. C. Mahajan
Shri O. N. Singh
Shri S. K. Goel

Shri K K Agarwal

(. J ) / (Rs. in Lacs)

Ex-Chairman & Managing Director

Ex-Chairman & Managing Director
Ex-Chairman & Managing Director
Ex-Executive Director
Ex-Executive Director

164

/ Remuneration
2008-09

21.70

8.39

2.48

NIL

1.92

NIL

11.62

15.96

17.69

5.42

6.69

12.83

1.37

0.91

3.53

3.20

14.31

8.39

OS] il +E xEnEh vi E xvh O

E{x E +v { E { EE |h u E Vi
il inx = ={H Sx x M *
J)

+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.
b) Transactions with associate company Universal Sompo
General Insurance Company Limited. are as follows:

(. Ec ) / (Rs. in Crore)

h \

Particulars

2009-10

2008-09

5.49
2.98

1.90
0.54

+Vi + \ Income Earned

|nk | \ Insurance Premium Paid
M)

+xM E{x :
i) +E <xx ]b ({h i )
P) H =t :
i) BB+<(<b) .
E) BB] :
i) <n { Oh E*
ii) n Oh E
iii) x { Vx <xx E{x .
* k 2009-10 E nx n Ij Oh E +li
Jx> Ij Oh E + jh Ij Oh E i
E <n { Oh E E x BE x Ij Oh
E M`i E M*
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 *
10.4 {]] |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 :
31.03.2010 E lli +{i {]] +v i n E

c) Subsidiary:
i)

All Bank Finance Limited (wholly owned)

d) Joint Venture:
i)

ASREC (India) Ltd.

e) Associates:
i)

Allahabad U P Gramin Bank*

ii) Sharda Gramin Bank

iii) Universal Sompo General Insurance Company Limited
*During the financial year 2009-10 two Regional Rural Banks
namely Lucknow Kshetriya Gramin Bank & Triveni Kshetriya
Gramin Bank amalgamated to form a new RRB named
Allahabad U P Gramin Bank.
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.
10.4. 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 31.03.2010

(. Ec ) / (Rs. in Crore)
Vn {]] +v

\ Existing Lease period

Amount Payable
2009-10

2008-09

BE +xvE / Not later than one year

36.11
33.75
BE E n il {S +xvE / Later than one year and not later than five years 94.66
78.59
{S E n / Later than five years
37.13
23.78
In
respect
of
its
subsidiary,
lease
accounting
standard
is not
<E +xM E v , {]] J xE |V x CE
E{x x 01.04.2001 E n E< {]] Ei x E * applicable since the Company has not sanctioned any lease
after 01.04.2001.

165

ii)

ix {j E iJ E xi x E Ex ={ {]] E
+iMi |{i EB Vx |ii xxi ={ {]]
E Mix E M : x ({U : x)

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)

vi +v i B x E h +Yi {] ]
Mix : . 60.75 Ec ({U .48.58 Ec)

iii) Lease payments recognised in the statement of profit

and loss for the period: Rs.60.75 Crores (Previous Year:
Rs.48.58 Crores)

iv)

vi +v i B x E h +Yi
|{i(+l |{) ={-{]] E Mix :x ({U :
x)

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:

J) k {]] :
E E { k {]] E +iMi E< {k x *
10.5. |i +Vx : J xE (BB) 20:
G .

Sl No.

Particulars

Bank is not having any assets under Financial Lease.

10.5. Earning Per Share Accounting Standard (AS) 20:

2009-10 i

2008-09 i

For the year 2009-10

For the year 2008-09

Rs. 27.50

Rs. 17.70

|i + b<]b +Vx
A

Basic and Diluted Earning Per Share

10.6 + { E i J - J xE (BB) 22

10.6. Accounting for Taxes on Income: Accounting

Standard (AS) 22

E nx +lMi E i E Vx E { . 11.10
Ec(x) ({U x x . 8.58 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. 11.10 Crores (Net) (Previous

year net debit Rs.8.58 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:

h /

Particulars

E |
At the beginning
of the Year
2009-10

+lMi E +i / Deferred Tax Assets

+E xEnEh i |vx /
Provision for Leave Encashment

(. Ec ) / (Rs. in Crore)

2008-09

Vx Vc/(P])

E +i

Adjustment
Add/(Less)

At the close of
the Year

2009-10

2008-09

2009-10

2008-09

Nil

2.61

Nil

(2.61)

Nil

Nil

0.65

0.00

0.58

0.66

1.23

0.65

6.99
2.12
0.54
10.30

1.59
0.00
0.53
4.73

(3.33)
(2.12)
0.00
(4.87)

5.40
2.12
0.01
5.58

3.66
Nil
0.54
5.43

6.99
2.12
0.54
10.30

1.34

1.07

(1.34)

0.27

0.00

1.34

Interest Accrued but not due on securities

held as Investments
+x / Others
E / Total

21.29
0.54
23.17

12.61
0.53
14.21

7.52
0.05
6.23

8.69
0.01
8.97

28.81
0.59
29.40

21.29
0.54
23.17

Deferred Tax Assets (Net)

12.87

9.48

11.10

3.39

23.97

12.87

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

+lMi E niB (x) /

166

10.7 k +i E { E E +i E {{i + {
J xE (BB) 28 <{] + B] |V x
* |vx E =H xE E +x 31.03.2010 E
E E +x +i E< <{] x + +Yx
i E< i{h i x

10.7. 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 31.03.2010 to any material
extent requiring recognition in terms of the said standard.

10.8 |vx, +EE niB + +EE +i E v

J xE (BB)29 E +x |E]Eh

10.8. Disclosure in terms of Accounting Standard (AS) 29 on

Provisions, Contingent Liabilities and Contingent
Assets:

ni+ i |vx E Sx (<i ) :

Movement of Provision for Liabilities (Closing Balance):

(. Ec ) / (Rs. in Crore)
rJJhK /
(a)
(b)
(c)
(d)
(e)
(f)
(g)
10.9.

E lli

E lli

As on 31.03.2010

As on 31.03.2009

Particulars

YlveY nu;w tJ"tl / Provision toward NPA

rlJuN vh bqgtm nu;w tJ"tl / Provision for Depreciation on Investment
btlfU ytr;gt nu;w tJ"tl / Provision towards Standard Assets
ytgfUh nu;w tJ"tl / Provision towards Income Tax
yt:rd; fUh ytr; / =ug;t / Deferred Tax (Assets) / Liabilities
ylwMkde ttC fUh / Fringe Benefit Tax
yg / Others
fwUt / Total
Jb Sx : J xE (BB)
h

17

751.65

502.27

251.80
280.98
1294.24
23.22
26.04
641.76
3269.69

430.30
277.01
740.31
12.87
26.04
621.97
2610.77

10.9. Segment Information: Accounting Standard (AS) 17

(. Ec ) / (Rs. in Crore)

\ Description

E {i \ Year ended

E {i \ Year ended

(J{Ii)\ (Audited)

(J{Ii) \ (Audited)

31-03-2010
Ei \ Consolidated

M E. Jb / PART - A Business Segment

a) V Jb / Segment Revenue
i)
]V / Treasury
ii)
fUthvtuhux/:tufU crfUkd / Corporate/Wholesale Banking
iii) rhxut crfUkd / Retail Banking
iv) yg crfUkd gJmtg / Other Banking Business
E / Total
P]B: +i V Jb / Less : Inter Segment Revenue
x G/{Sx + / Net Sales/Income from Operation
b) Jb {h () / Segment Results (Profit)
i)
]V / Treasury
ii)
fUthvtuhux/:tufU crfUkd / Corporate/Wholesale Banking
iii) rhxut crfUkd / Retail Banking
iv) yg crfUkd gJmtg / Other Banking Business
E (vrhattl ttC)/ Total (Operating Profit)
P]B: / Less :
i)
V / Interest
ii)
+]i x EB V Ex +x / Other Un-allocable Expenditure
iii) +]i x E V Ex +x + / Other Un-allocable income
E { E / Total Profit Before Tax
ytgfUh / Income Taxes
x / Net Profit
167

31-03-2009
Ei \ Consolidated

2608.47
4276.43
2766.23
261.53
9912.66
0.00
9912.66

2482.87
3213.16
2760.60
71.88
8528.51
0.00
8528.51

140.30
1080.39
1114.57
238.30
2573.56

431.43
691.43
732.98
67.18
1923.02

0.00
777.32
0.00
1796.24
567.78
1228.46

0.00
824.18
0.00
1098.84
308.37
790.47

c)

\ Description

E {i \ Year ended

E {i \ Year ended

(J{Ii)\ (Audited)

(J{Ii) \ (Audited)

31-03-2010
Ei \ Consolidated

Jb +i-Jb niB / Segment Assets/ Liabilities

Jb +i / Segment Assets
i)
]V / Treasury
ii)
fUthvtuhux/:tufU crfUkd / Corporate/Wholesale Banking
iii) rhxut crfUkd / Retail Banking
iv) yg crfUkd gJmtg / Other Banking Business
vi) +x]i +i / Unallocated Assets
E +i / Total Assets

39911.79
53803.56
26865.95
208.08
1117.91
121907.29

30141.74
43829.84
22566.68
181.49
1109.75
97829.50

Jb niB / Segment Liabilities

]V / Treasury
fUthvtuhux/:tufU crfUkd / Corporate/Wholesale Banking
rhxut crfUkd / Retail Banking
yg crfUkd gJmtg / Other Banking Business
E / Total
{V B +Ii xv / Capital & Reserves
E niB / Total Liabilities

38046.62
51289.19
25607.51
0.00
114943.32
6963.97
121907.29

28661.11
41676.80
21454.77
0.00
91792.68
6036.82
97829.50

9863.60
49.06

8512.75
15.76

9912.66

8528.51

120092.21
1815.08

96690.10
1139.40

121907.29

97829.50

i)
ii)
iii)
iv)

M J. ME Jb / PART - B Geographic Segment

a. V / Revenue
i.
P / Domestic
ii.
+i] / International
iii. E / Total
b. +i / Assets
i.
P / Domestic
ii.
+i] / International
iii. E / Total
Jb Sx { ]{{h :
l
Ei Jb {]M +xM E{x, BE M-EM l E
E + E { x M *
l

l
l

31-03-2009
Ei \ Consolidated

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
o ]V {Sx
o E{]/lE EM
o ] EM
o +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 *

Notes to Segment Information:

l

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 four segments, viz.
o

Treasury Operations,

Corporate / Wholesale Banking

Retail Banking

Other Banking business

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.

168

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 *

11 +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, +{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
l
z +{ |vEh E I i E v
ni +E V E{x E .12.09 Ec ({U
22.19 Ec ) E E |{i x E x * 31.03.2010
E lli .9.87 Ec ({U .7.80 Ec) E
+O E, i { E] MB E + |{ +E
b E { n< M< * Exvh + +{
E z Sh Vx i i *
l
E{x E r @h E { +Ei x EB MB n:
.11.76 Ec ({U .11.76 Ec)
11.1 + 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>

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.

11.

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. Additional
comments in respect of contingent liabilities of AllBank
Finance Limited are as follows:

Disputed Income Tax in respect of matters pending before

various appellate authorities where the Company expects
to succeed amounts to Rs. 12.09 Crores (Previous Year
Rs. 22.19 Crores). As on 31.03.2010, Rs. 9.87 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.

Claims against the Company not acknowledged as

Debts : Rs.11.76 Crores (Previous Year Rs. 11.76 Crores)

11.1 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.

11.2 {VMi Ji { x{nx i n E +xxi

VE |vx x E M (+O UcE) .38.67
Ec (Mi .61.93 Ec) *
11.3. +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*

11.2 Estimated amount of contracts remaining to be executed

on capital account and not provided for (Net of Advance)
Rs. 38.67 Crores (Previous Year Rs. 61.93 Crores).

11.4 E @h i Vx E +iMi Ex u E + E
75% E Mix Ex E il 30.06.2010 iE g< M<
* {j +x Ex E BE +vE Ei 30.06.2010
iE E E SEx E +xi n M< * +i: Vx E
+iMi {j +x Ex E @h Ji E xE +i x
M *
V +E Z M Mi E +Ec E {x:i
{x:MEi E M *

11.4 Under Agriculture Debt Relief Scheme, the last date for
payment of 75% of the overdue portion by the farmers
has been extended up to 30.06.2010. The eligible other
farmers are allowed to repay the amount in one or more
instalments up to 30.06.2010. Hence, the loan accounts
of other farmers, who are eligible under the scheme, have
been considered as standard assets.

11.3 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.

Figures of previous year have been regrouped or reclassified

wherever considered necessary.

169

<n E, <E +xM il <E i BB] E Ei

k h { J{IE E {]

,
xnE b
<n E
1. x lli 31 S, 2010 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 + BE H =t il BE BB]
E{x 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 2010 E . 52.60 Ec E E +i il = iJ E {i
. 10.69 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 *
ii) BB] n Ij Oh E (+) , VE k h lli 31 S 2010 E . 6280.92 Ec
E E +i il = iJ E {i . 394.86 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 BB] E{x, V E{x +J{Ii VE
E +i .332.26 Ec + E V 26.51 Ec *
iii) BE H =t V BE +i {xxh E{x VE k h +J{Ii + lli 31 S 2010 E . 115.45
Ec E E +i il = iJ E {i . 11.44 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. 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) ytih 2 (ii), 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 2010 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 .E] Bb M
xn JE
(B. hJx)
vtxolh
ni . 26400
{VEh J 004597S

Ei . ni E {J Bb E.
xn JE
(Exi V)
vtxolh
m=g;t mk 39461
{VEh J 110512w

Ei . B.+. xh Bb E.
xn JE
(B.Bx. E]x)
vtxolh
m=g;t mk. 22993
{VEh J 002330S

Ei . B.P Bb E{x
xn JE
(Snx S]]{v)
vtxolh
m=g;t mk. 51254
{VEh J 302184E

lx : EEi
nxE : +| 30, 2010

170

Ei . {.B. Bb BB]
xn JE
({.B.{b)
vtxolh
m=g;t mk. 51092
{VEh J 313085E
Ei . E.B. +O Bb E
xn JE
(xI M{i)
vtxolh
m=g;t mk. 92834
{VEh J 0853N

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 2010 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 one joint
venture and one associate company.
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 mis-statements. 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. 52.60 Crore as at 31st March 2010 and total
revenues of Rs. 10.69 Crore for the year ended on that date. These financial statements have been audited by other
auditor whose report has been furnished to us, and our opinion, in so far 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. 6280.92
crore as at 31st March 2010 and total revenues of Rs. 394.86 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, in so far 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 associate company, which is an insurance company is un audited, whose total asset is Rs
332.26 Crore and revenue of Rs 26.51 crore.
iii. One joint venture which is an asset reconstruction company, whose financial statements are unaudited and reflect total
assets of Rs. 115.45 Crore as at 31st March 2010 and total revenues of Rs. 11.44 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. 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) 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 2010;
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 M/S. Venkat & Rangaa
Chartered Accountants
(S. Manisekaran)
Partner
Membership No. 026400
Firm ICAI Reg.No:004597S

For M/S. Sudit K. Parekh & Co.

Chartered Accountants
(Srikant Jilla)
Partner
Membership No. 39461
Firm ICAI Reg.No: 110512W

For M/S. P.A. & Associates

Chartered Accountants
(P.S.Panda)
Partner
Membership No. 51092
Firm ICAI Reg.No:313085E

For M/S. M. R. Narain & Co.

Chartered Accountants
(M.N. Venkatesan)
Partner
Membership No. - 22993
Firm ICAI Reg.No:002330S

For M/S. S Ghose & Co.

Chartered Accountants
(Chandan Chattopadhay)
Partner
Membership No. 51254
Firm ICAI Reg.No: 302184E

For M/S. K.M. Agarwal & Co.

Chartered Accountants
(Meenakshi Gupta)
Partner
Membership No. 92834
Firm ICAI Reg.No: 0853N

Place: Kolkata
Date: April 30, 2010

171

+E <xx . fuU xnE E {]

DIRECTORS REPORT

xnEMh Binu 31 S, 2010 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, 2010.

k {h

FINANCIAL RESULTS

Ivx E n x E{x x {U +Vi . 9,41,70,706/

- E E{Si E {I . 7,14,92,466/- E E {Si
+Vi E * k {h E xxx :

During the year under review, your company earned profit

after tax of Rs. 7,14,92,466/- as against Rs.9,41,70,706/- in
the previous year. The summary of the financial results is as
follows:

E V \ Gross Revenue
E \ Total Expenses
E { \ Profit Before tax (PBT)
E i |vx \ Provision for tax
E {Si \ Profit after tax

31.03.2010

31.03.2009

10,69,33,627

11,83,79,563

1,06,25,793

1,22,57,857

9,63,07,834

10,61,21,706

2,48,00,000

1,19,51,000

7,14,92,466

9,41,70,706

DIVIDEND

31 S, 2010 E {i i xnE x E E
x E*

Directors do not recommend any dividend for the year ended

31st March, 2010.

Vx V +ih

TRANSFER TO GENERAL RESERVE

E{x(] + |] V) x, 1975 E +x xnEMh

S k E . 7,14,92,466/- E E Vx
V +ii Ex E |i Ei *

Directors propose to transfer a sum of Rs. 7,14,92,466/- to

general reserve out of the current year profits in accordance
with the companys (transfer of profit reserve) Rules, 1975.

{Sx

OPERATIONS

+vE iE |J V n E n * il{,
E +i < v E Ei l* n + VxE Ij E
={G + E u c +E E < x @h V +vE
G x * lMi xE E H b E| x
* < {o E {` +{E E{x x @h x { vx
Epi E + .70,00,000/- E V +Vi E*

Primary markets remained dull for major part of the year.

However, towards the fag end of the year, there were signs of
revival. On the other hand, Debt markets remained more active with many large size issues by Public Sector Undertakings and Banks. Tax free bonds were also popular amongst
institutional investors. On the back drop of this scenario, your
company focused on Debt syndication activities and earned
revenue of Rs. 70, 00,000/-

+{E E{x x .3,42,42,648/- E x Vxi + |{i E

VE J l + |ii { V + E Vi
* +xE V {o E =`i B +{E E{x x <C]
x E x{]x u .1,63,49,564/- E x E *

Your company reported investment income of Rs. 3,42,42,648/

- which is largely attributed to interest on fixed income securities and dividends. Your company also resorted to profit
booking amounting to Rs.1,63,49,564/- by disposed off equity investments taking advantage of favourable market conditions.

E{x E V E {{i + EV +(BB x]) +li

.5,81,60,085/- *
E nx +{E E{x x 2010 bS
]]{ Miv i V]x |{i E * +{E E{x x<
Miv V +Vi Ex E | EM*

Brokerage income (MF units) constituted substantial portion

of the revenue of the company viz, Rs 5,81,60,085/-.
During the year your company obtained registration for Debenture Trusteeship activities from SEBI in February 2010.
Your company will endeavor to generate revenue from the
new activity.

ix E xB

OUTLOOK FOR THE CURRENT YEAR

+xE V {li + i Ij Oi: +lE

E E x+ E Si +{E E{x E E +vi Miv
E +vE + |{i x E x * <C] + @h V
nx Ij Mii E l +{E E{x < |vx, @h x
+ E M< ]]{ Miv G E
xBM*

Favourable stock market conditions and the expectations of

overall economic growth across sectors are likely to provide
opportunity to generate much higher revenues from the fee
based activities of your company. With the momentum for
both equity and debt market segment to continue, your company will play active role towards Issue Management, Debt
Syndication and newly started Trusteeship activities.

172

 nxn E +x{x

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 *

Your company has complied with various guidelines, directives, circulars issued by SEBI pertaining to Merchant Banking and other applicable Capital Market related activities.

ES E h

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

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

< E +iMi E{x E EU {] x Ex *

The company has nothing to report under this head.

xnEMh

BOARD OF DIRECTORS

E.+. Ei u {V xx E E | Oh Ex E
{h{ V.{. n+, +|x, <n E x +E
<x . E +vI E | Oh E* <E +iH, E
nx E.E. +O, E{E xnE 31.07.2009 E
<n E xi E Eh b xk MB*

Consequent upon Shri K. R. Kamath taking over as CMD of

Punjab National Bank, Shri J.P. Dua, CMD Allahabad Bank
assumed charge of AllBank Finance Limited as its Chairman. Further during the year Shri K. K. Agarwal, Executive
Director also retired on 31.07.2009 pursuant to his retirement from the services of Allahabad Bank.

B.+. xM{{x, b.{. J + b. in , b E

ij xnEMh ix E +v { Ex { 30 V< 2009
E xk MB* E.+. Ei, B.+. xM{{x,
b.{. J, b. in + E.E. +O u E{x E
xnE E { +{x EE |nx E M< + E B b
=xE x Ei *
{.E. M{i, +.V. + b. xM{i E 30 V<
2009 ij xnE E { xH E M* <n E E
x xH E{xE xnE b. E E 23 2010
b E M *
E{x +vx, 1956 v 274(i)(V) E +iMi E{x E E
xnE E +M x { M *

Shri A. R. Nagappan, Shri D. P. Khullar and Dr. Satyadev Singh,

Independent Directors on the Board, having completed the
term of three years, retired on 30th July, 2009. The Board placed
on record its appreciation for the services rendered by Shri K.
R. Kamath, Shri A. R. Nagappan, Shri D. P. Khullar and Dr.
Satyadev Singh and Shri K.K. Agarwal during their tenure as
Directors of the Company.
Shri P. K. Gupta, Shri R. G. Sharma and Shri D. Sengupta
were appointed as Independent Director w.e.f. 30th July, 2009.
Shri D. Sarkar, newly appointed Executive Director of Allahabad
Bank was inducted on the Board w.e.f. 23rd February, 2010.
No Director of the Company has been disqualified under
section 274(i)(g) of the Companies Act, 1956.

E{] Mxx

CORPORATE GOVERNANCE

(E) b ` E
2009-10 E nx b E {S ` E < + Vx b E
n x M

(a) Board Meetings:

During the year 2009-10 five Board meetings were held and
attendance by Board members:

xnE

` E E J

Director

No. of meetings

E.+. Ei (27.10.2009 E xk) / Shri K. R. Kamath (retired on 27.10.2009)

V. {. n+ (01.08.2009 E rlgw; ) / Shri J. P. Dua (appointed on 01.08.2009)
E.E. +O (31.07.2009 E xk) / Shri K. K. Agarwal (retired on 31.7.2009)
B.+. xM{{x (30.07.2009 E xk) / Shri A. R. Nagappan (retired on 30.7.2009)
b.{. J (30.07.2009 E xk) / Shri D., P. Khullar (retired on 30.7.2009)
b. in (30.07.2009 E xk) / Dr. Satyadev Singh (retired on 30.7.2009)
{. E. M{i / Shri P. K. Gupta
b. xM{i / Shri D. Sengupta
+. V. / Shri R. G. Sharma
b. E / Shri D. Sarkar
B. E. SGk / Shri S. K. Chakraborty
B. . ^S / Shri A. B. Bhattacharjee
|n +EE / Shri Prasad Akolkar
173

2
4
1
1
1
1
4
4
4
2
5
5
5

={li

Meetings attended
2
4
1
1
1
4
2
4
2
5
4
5

(J) J{I i

(b) Audit Committee:

+{E E{x x b E n J{I i M`i E V

{.E. M{i, +.V. + B.ce. ]]S *
E nx ix ` E +Vi E M<* J{I i E EIj
E{x +vx 1956 E v 292B E +x *

Your Company constituted Audit Committee of the members

of the Board viz. Shri P. K. Gupta, Shri R. G. Sharma and Shri
A. B. Bhattacharjee. Three meetings were held 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 2010 E {i k E E J E i
Sx v Si {]Eh E l M J xE
E {x E M

a) In the preparation of the annual accounts for the

financial year ended 31st March, 2010, the applicable
accounting standards had been followed along with
proper explanation relating to departures.

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*

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.

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
*

c)

P) xnE x 31 S 2010 E {i i + ii
|i`x +v { E J i EB *

d) The Directors had prepared the accounts for the

financial year ended 31st March 2010 on a going
concern basis.

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.

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
2009-10 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 2009-10.

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

Ministry of Finance, Government of India, 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 express their appreciation for the contribution

made by the Companys Employees.

(|n +EE)
|v xnE B <+

lx: EEi
nxE :26 +|, 2010

(V.{. n+)
+vI

Your Directors also wish to place on record their thanks to the

Bankers of the Company and their appreciation for the assistance, support and guidance received from Allahabad Bank
and its Employees.

For on and behalf of the Board of Directors

Place: Kolkata
Date: 26th April, 2010

174

(Prasad Akolkar)
MD & CEO

(J.P. Dua)
Chairman

+E <xx ]b
AllBank Finance Limited
31 S, 2010 E ix-{j
BALANCE SHEET AS AT 31st March, 2010

+xS /
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

Schedule

31.03.2010
(Rs)

31.03.2009
(Rs)

150,000,000

150,000,000

295,890,615

224,398,149

445,890,615

374,398,149

C
50,963,265

51,714,268

33,238,120

34,563,181

17,725,145

17,151,087

334,240,825

268,577,078

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

E
F

56,164,475

653,562
52,646,574

G
H

17,043,656
100,864,115

6,071,070
79,924,087

174,072,246

139,295,293

6,534,534

1,373,104

73,613,067

49,252,205

80,147,601

50,625,309

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

93,924,645

88,669,984

445,890,615

374,398,149

P
Q

={H ni ylwmqragt ;wtlvt E +z +M

The Schedules referred to above form an integral part of Balance Sheet.

ix-{j il E {] ni
This is the Balance Sheet referred to in our report of even data.

Ei b Bb

b E B B E +

For De & Bose

For and on behalf of the Board

xn JE
Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mk. / Membership No. 54962

V.{. n+ / J. P. Dua
+vI / Chairman

|n +EE / Prasad Akolkar

ck" xnE B <+ / M D & CEO
+Vi vtrNlu / Abhijit Pashine
fUkvle mraJ / Company Secretary

lx : EEi / Place : Kolkata

nxE / Dated : 26.04.2010

175

{. E. M{i / P. K. Gupta
xnE / Director

+E <xx ]b
AllBank Finance Limited
31 S, 2010 E {i E x J
Profit and Loss Account for the year ended 31st March, 2010

+xS
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
+xM E / - Fringe Benefit 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
+ |i (+Ei |i . 100)

E {i

31.03.2010

Year ended
31.03.2010
Rs.

31.03.2009

E {i
Year ended
31.03.2009
Rs.

7,000,000

13,533,290

58,160,085

17,034,417

K
L
M

34,216,288
5,696,482
1,860,772
106,933,627

23,265,367
1,947,329
62,599,160
118,379,563

N
O
C

3,403,627
7,058,497
163,669
10,625,793

3,412,793
8,730,197
114,867
12,257,857

96,307,834

106,121,706

24,800,000

11,900,000

51,000

(15,368)

71,492,466
223,337,896
294,830,362

94,170,706
129,167,190
223,337,896

47.66

62.78

P
Q

Earnings per Share [ Face value Rs.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 ]

-x J il E {] ni *
This is the Profit and Loss Account referred to in our report of even date

={H ni +xS -x J E +z +M *
This Schedules referred to above form an integral part of Profit and Loss Account.

b E B B E +
For and on behalf of the Board

Ei b Bb
For De & Bose

V.{. n+ / J. P. Dua
+vI / Chairman

|n +EE / Prasad Akolkar

ck" xnE B <+ / M D & CEO

xn JE
Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mk. / Membership No. 54962

+Vi vtrNluu / Abhijit Pashine

fUkvle mraJ / Company Secretary

lx : EEi / Place : Kolkata

nxE / Dated : 26.04.2010

176

{. E. M{i / P. K. Gupta
xnE / Director

+E <x ]b
AllBank Finance Limited

31 S, 2010 E {i i xEn | h
Cash Flow Statement for the year ended 31 st March, 2010
2009-10
. / Rs.

2008-09
. / Rs.

96,307,834

106,121,706

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

163,669

114,867

(16,673,832)

(2,743,704)

(6,558,693)

(16,172,775)

(278,500)

(1,419,096)

(1,278,142)

(744,332)

(6,750)

(5,636)

(26,809)

(21,142,704)

Bx{B i |vx + +{Ii x

/
Provision for NPA no longer required

i |vx + +{Ii x /
Provision for Expenses no longer required

x +{ i |vx + +{Ii x /
Provision for Diminution in Investment no longer required

{ +v E + / Prior Period Income

Bx{B + nMv @h i |vx /

(38,384,239)

Provision for NPA and Doubtful debts

3,373,541

]] Ji b MB +v @h / Bad Debt written off

x +{ i |vx /

428,841

122,327

Provision for diminution in Investment

165,075

868

+]B { x / Loss on OTS

x +{ E G { /
Profit on sale of Investments

19,000
(16,349,564)

x E +{ / Diminution in value of Investments

x E G { x / Loss on sale of Investments
l +i E G { x/]] Ji b M< +i

(7,903,713)
1,346,233

26,360

Loss on sale of Fixed Assets/Assets written off

105,307

1,765,018
(40,283,038)

22,708

(81,751,637)

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 / Cash generated from Operations
P]B : Mix E M E / Less : Tax paid
{Sx Miv x xEn /

56,024,796

24,370,069

(2,440,410)

(915,245)

(1,891,634)

(650,542)

4,729,408

Net Cash from Operating Activities (A)

177

397,364

2,460,637

894,850

56,422,160

25,264,919

19,063,762

11,643,670

37,358,398

13,621,249

J. x Miv xEn |
B CASH FLOW FROM INVESTING ACTIVITIES
l +i E Jn / Purchase of Fixed Assets

(843,034)

(58,030)

(142,500,000)

3,000
(125,500,000)

l +i E G |{i +M
Proceeds from Sale of Fixed Assets
S+ b x / Investments in Mutual Fund

x E G |{i +M
Proceeds from Sale of Investments
b rlJuN / Investment in Shares

184,795,925
(1,687,575)

240,975,171

E E v V x
Investment to Fixed Deposit with Bank

(50,000,000)

dih vrhJ;oleg rzcah b rlJuN

Investment in Non-Convertible Debentures

E H b x / Investment in Tax Free Bond

V + / Interest Income
+- / Dividend Income - Shares
+- S+ b /

(40,000,000)
(50,000,000)

Dividend Income - Mutual Funds

Net Cash (used in ) Investing Activities (B)

(50,000,000)
(50,000,000)

9,644,153

249,627

278,500

1,419,096

6,471,533

(33,840,498)

15,091,495

(17,819,641)

M k Miv xEn |
C. CASH FLOW FROM FINANCING ACTIVITIES

k Miv x xEn
-

Net Cash from Financing Activities (C)

xEn + xEn i x(E)/r

Net(Decrease)/Increase-Cash & Cash Equivalents (A+B+C)

3,517,900

(4,198,392)

2,646,574

6,844,966

6,164,474

2,646,574

5,675

1,028

6,158,800
6,164,475

2,645,546
2,646,574

stuz & xEn + xEn i (+l )

Add :Cash and Cash Equivalents (Opening Balance)

xEn + xEn i (<i )

Note -1

Cash and Cash Equivalents ( Closing Balance )

x]: / Note- 1 :
xEn + xEn i xx :
Cash and Cash Equivalents incliude

NufU\z NuM / Cash in hand

+xSi E E (S Ji )
Balance with Schedule Banks (Current Acccount)

il E {] ni xEn | h
This is the Cash Flow Statement referred to in our report of even date.

b E B B E +
For and on behalf of the Board

Ei b Bb
For De & Bose

V.{. n+ / J. P. Dua
+vI / Chairman

|n +EE / Prasad Akolkar

ck" xnE B <+ / M D & CEO

xn JE

Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mk. / Membership No. 54962
lx : EEi / Place : Kolkata
nxE / Dated : 26.04.2010

+Vi vtrNlu / Abhijit Pashine

fUkvle mraJ / Company Secretary

178

{. E. M{i / P. K. Gupta
xnE / Director

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of Accounts

AllBank Finance Ltd.

+xS "B' -- {V

31.03.2010
(.)(Rs.)

SCHEDULE A CAPITAL
*

{V

31.03.2009
(.)(Rs.)

/ *SHARE CAPITAL

|vEi / Authorised
100/- . |iE E 15,00,000 vh
15,00,000 Ordinary Shares of Rs 100/- each

150,000,000

150,000,000

150,000,000

150,000,000

150,000,000

150,000,000

xMi, +nk B nk
Issued, Subscribed and Paid Up

100/- . |iE E 15,00,000 vh

15,00,000 Ordinary Shares of Rs 100/- each

(i <n E B <E xi E { )
(All the Shares are held by Allahabad Bank and its
nominees )
31.03.2010
(.)(Rs.)

+xS "' -- tIi B +v

SCHEDULE B RESERVES AND SURPLUS

31.03.2009
(.)(Rs.)

tIi B +v /
RESERVES AND SURPLUS

x tIi / General Reserve

B x tuFt

Profit and Loss Account

179

1,060,253

1,060,253

294,830,362

223,337,896

295,890,615

224,398,149

180

/ Previous Year

Computer Software

fUkvwxh mtxugh

INTANGIBLE ASSETS

+i +i

(A +B)

51,717,238

51,714,268

1,115,154
49,367,035
51,714,268

Motor Vehicles

]x

17,295,894

609,308

30,346,679

2,347,233

1,816,528

530,705

58,030

42,000
42,000
843,034

801,034

595,043
801,034

119,133

86,858

Additions

61,000

1,594,037

1,115,154
1,115,154
1,594,037

478,883

342,105

136,778

Adjustments

51,714,268

42,000
42,000
50,963,265

48,251,881
50,921,265

17,295,894

609,308

30,346,679

595,043
2,669,384

1,593,556

480,785

As at
31.03.2010

E E / GROSS BLOCK
{vx
Vx 31 S 2010 E

Office Equipments

E ={Eh

Furniture and Fixtures

xS B CS

Plant and Machinary

{] B x

ASSETS GIVEN ON
LEASE

V { |nk +i

Motor Vehicles

]x

Office Equipments

E ={Eh

Furniture and Fixtures

xS B CS

ASSETS OTHER THAN

ON LEASE

V E +iH +x +i

01.04.2009 E
As at
01.04.2009

FIXED ASSETS

TANGIBLE ASSETS

bq;o +i

Particulars

Schedule - C

+xS "' -- l +i

Schedules Forming Part of the Accounts

J E M E { +xS

34,483,606

34,563,181

1,047,749
32,759,934
34,563,181

3,033,976

574,310

28,103,899

1,803,247

1,440,012

114,867

8,800
8,800
163,669

154,869

29,581
154,869

102,880

22,408

For the
Period

3,033,976

574,310

28,103,899

29,581
1,517,135

1,225,142

262,412

31.03.2010 E
As at
31.03.2010

35,292 34,563,181

8,800
8,800
1,488,730 33,238,120

1,047,749
1,047,749 31,712,185
1,488,730 33,229,320

440,981

317,750

123,231

Adjustments

/ DEPRECIATION
+v
Vx

363,235

31.03.2009 E
As at
31.03.2009

+E <xx .

17,151,087

33,200
33,200
17,725,145

16,539,696
17,691,945

14,261,918

34,998

2,242,780

565,462
1,152,249

368,414

218,373

As at
31.03.2010

17,151,087

67,405
16,607,101
17,151,087

14,261,918

34,998

2,242,780

543,986

376,516

167,470

As at
31.03.2009

x E /NET BLOCK
31.03.2010 E
31.03.2009 E

AllBank Finance Ltd.

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

AllBank Finance Ltd.

Q U A N T I T Y

BOOK

VALUE

E lli

E lli E lli
31.03.2009

31.03.2010

E lli

As at
31.03.2010

As at
31.03.2009

As at
31.03.2010
. (Rs.)

As at
31.03.2009
. (Rs.)

31.03.2010

MARKET

VALUE

E lli

31.03.2009

31.03.2010

As at 31.03.2010

n / Rate
.

(Rs.)

/ Value
.

(Rs.

ix x +xE]b / CURRENT INVESTMENT - Unquoted

1. S+ b x] / MUTUAL FUNDS UNITS
x< Cb {
Birla sunlife Liquid PlusnxE / Daily Dividend
+{x Bbb / Open ended

2.

BSbB <E b

3.

BSbB }]M ]-

4.

HDFC Income Fund

E E / Growth Fund
+{x Bbb - b] / Open Ended - Debt
HDFC Floationg Rate B] {x / ST Plan
nxE / Daily Dividend

10.0809

5,003,654

189,274.698 3,405,392.344

20,012,960

36,006,916

105.7350

20,012,960

10.0069

20,013,800

10,008,616

744,420.041

7,503,605

10.0798

7,503,605

19,986.861

20,013,621

1,001.3389

20,013,621

1,270.086

19,074

15.0180

19,074

30,006.905

30,013,330

1,000.2141

30,013,330

IDFC Money Manager Fund

1,000,000.000
E / Monthly Dividend
E S x / Total Current Investment

10,012,300

10.0487

10,048,701

10.0111

10,008,616

E]E }] M ]
x xV b
]+< ]V Bb]V b
]+< ]V Bb]V b
UTI Treasury Advantage Fund
nxE / Daily Dividend

11.

15,165,896

999,751.871

UTI Treasury Advantage Fund

i / Quarterly Dividend
10.

5,003,654

]{]x <b +]
] b b

Reliance Money Manager Fund

nxE / Daily Dividend
9.

496,349.963 1,504,418.866

20,000,000

Kotak Floater Long Term

nxE / Daily Dividend
8.

48,653,767

2,000,000.000

Templeton India Ultra

Short Bond Fund
nxE / Daily Dividend
7.

2,424,771.465

x< i +i
bbb {+=]
Birla Sunlife Qtly IntervalDividend Payout
V-4 / Series 4

6.

25,408,468

+<+<+< |b
}C <E {x
ICICI Prudential Flexible Income plan
nxE / Daily Dividend

5.

2,539,120.224

+<bB x xV b
122,587,160

181

125,235,047

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

AllBank Finance Ltd.

Q U A N T I T Y

BOOK

VALUE

MARKET

E lli

E lli E lli
31.03.2009

31.03.2010

E lli

As at
31.03.2010

As at
31.03.2009

As at
31.03.2010
. (Rs.)

As at
31.03.2009
. (Rs.)

n / Rate

31.03.2010

nPv x-+xE]b / LONG TERM INVESTMENT - Unquoted Shares

G |VC] .
. 10/- |iE E <C] , {h nk
(|iE E | . 25/-)

VALUE

E lli

31.03.2009

31.03.2010

As at 31.03.2010

(Rs.)

/ Value
.

(Rs.

85,500

85,500

2,992,500

2,992,500

Harpartap Steel Ltd

Equity Shares of Rs.10/- each, fully paid

380,923

380,923

3,809,230

3,809,230

Moulik Finance & Resorts Ltd

Equity Shares of Rs.10/- each, fully paid

119,700

119,700

1,197,000

1,197,000

Ritesh Polymers Ltd

Equity Shares of Rs.10/- each, fully paid
(Premium of Rs.5/- each)

58,300

58,300

874,500

874,500

Kalinga Cements Ltd

Equity Shares of Rs.10/- each, fully paid

150,000

150,000

1,500,000

1,500,000

Zuari Agro Chemicals Limited

Equity Shares of Rs.10/- each,fully paid

25

25

250

250

Dewan Sugars Limited

Equity Shares of Rs.10/- each, fully paid
n E / Divya Chem

650,000

650,000

6,500,000

6,500,000

50

50

1,538

1,538

10,000

10,000

851,900

851,900

106,000

2,507,960

2,507,960

40,000

757,200

757,200

28,000

795,200

795,200

25,000

1,017,500

1,017,500

Vikram Projects Ltd

Equity Shares of Rs.10/- each, fully paid
(Premium of Rs.25/- each)

|i{ ] .
. 10/- |iE E <C] , {h nk
E <x Bb ] .
. 10/- |iE E <C] , {h nk
i { .
. 10/- |iE E <C] , {h nk
(|iE E | . 5/-)
EM ] .
. 10/- |iE E <C] , {h nk
V+ BO EE .
. 10/- |iE E <C] , {h nk
nx M .
. 10/- |iE E <C] , {h nk

50 <C] (|iE E 30.76)

50 Equity Shares (Cost - Rs. 30.76 each)
x ] / Nirmal Metal

10,000 <C] (|iE E 85.19)

10,000 Equity Shares (Cost - Rs. 85.19 each)

x S VM / New Century Leasing 106,000

106,000 <C] (|iE E 23.66)

106,000 Equity Shares( Cost - Rs. 23.66 each)

x < +x / New Era Urban
40,000

40,000 <C] (|iE E 18.93)

40,000 Equity Shares ( Cost - Rs. 18.93 each)

V] EE / Regent Chemicals
28,000

28,000 <C] (|iE E 28.40)

28,000 EquityShares (Cost - Rs. 28.40 each)
MVi ] / Gujrat Filaments

25,000

25,000 <C] (|iE E 40.76)

25,000 EquityShares (Cost - Rs. 40.70 each)

182

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

AllBank Finance Ltd.

Q U A N T I T Y

BOOK

VALUE

MARKET

VALUE

E lli

E lli E lli
31.03.2009

31.03.2010

E lli

As at
31.03.2010

As at
31.03.2009

As at
31.03.2010
. (Rs.)

As at
31.03.2009
. (Rs.)

n / Rate

/ Solar Busiforms
126,200
126,200 <C] (|iE E 33.13)

126,200

4,181,006

4,181,006

1,400

10.0316

20,063,200

31.03.2010

E lli

31.03.2009

31.03.2010

As at 31.03.2010

(Rs.)

/ Value
.

(Rs.

126,200 Equity Shares (Cost - Rs. 33.13 each)

x {xM .
1,400 <C] (x)

1,400

Niwas Spinnings Ltd.

1,400 EquityShares (Bonus)

S+ b x]

MUTUAL FUND UNITS

x< B B
B]{ +<BxB] V B Bx-Ol
Birla Sunlife MF
FTP Inst Series AN - Growth

1,000,000

10,000,000

Franklin Templetan India MF

Fixed Maturity Plan

1,000,000

10,000,000

Kotak MF

1,500,000

15,000,000

Ex ]{]x <b BB
Cb S] {x
E]E BB

Cb S] {x / Fixed Maturity Plan

n { B B
B]{ E < <]x
500,000

Sundaram Paribas MF
FTP Scheme E Instutional

5,000,000

BSbB 13 B - Ol
HDFC 13M - Growth

2,000,000

20,000,000

Cb S] {x / Fixed Maturity Plan

={-M / Sub-Total
nPv x-+xE]b

46,985,784

66,985,784

LONG TERM INVESTMENT - Quoted SHARES

B <x .
BCL Financial Services Ltd

. 10/- |iE E <C] , {h nk

6,400

6,400

64,000

64,000

48,600

48,600

1,944,000

1,944,000

951.05

19,021

Equity Shares of Rs.10/- each, fully paid

E ] .
Malvika Steels Ltd

. 10/- |iE E <C] , {h nk

Equity Shares of Rs.10/- each, partly paid

(|iE E | . 30/-) / (Premium of Rs.30/- each)

BC<b <b]V .
11,200

Exide Industries Limited

56,000

. 10/- |iE E <C] , {h nk

Equity Shares of Rs.10/- each,Fully paid
B ./ ACC Ltd

20

20

1,100

1,100

. 10/- |iE E <C] , {h nk

Equity Shares of Rs.10/- each
B ./ ACC Ltd.

6,000

. 10/- |iE E <C] , {h nk

Equity Shares of Rs. 10/- each

183

3,151,860

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

+xS b x

SCHEDULE D INVESTMENT

AllBank Finance Ltd.

Q U A N T I T Y

31.03.2010

As at
31.03.2010

As at
31.03.2009

As at
31.03.2010
. (Rs.)

As at
31.03.2009
. (Rs.)

n / Rate

229

9,229

130,049

130,049

979.60

224,328

30.45

1,522,500

Not Quoted

Equity Shares of Rs. 5/- each

x E{] ./ Nahar Capital Ltd.

70

. 5/- |iE E <C]

E{]
. 1,000,000/- |iE E Bx b

VALUE

31.03.2009

70

Equity Shares of Rs. 10/- each

bS / DEBENTURES
]] E{] ./ Tata Capital Ltd.
. 1,00,000/- |iE E Bx b
NCDs of Rs.1,00,000/-each

MARKET

E lli

. 5/- |iE E <C]

. 10/- |iE E <C]

VALUE

E lli E lli

229 Equity Shares at cost of Rs. 567.90 each

x {xM . / Nahar Spinings Ltd.

Equity Shares of - Rs. 5/- each

BxBS{ ./ NHPC Ltd.

BOOK

E lli

31.03.2010

]] ] / Tata Tea
. 567.90 |iE E 229 <C]

31.03.2009

31.03.2010

As at 31.03.2010

(Rs.)

/ Value
.

(Rs.

29,815

50,000

500

E lli

1,687,575

500

50,000,000

50,000,000

30

30,000,000

Not Quoted

Sriram Transport Finance Co. Ltd.

NCDs of Rs.1,00,000/-each
b / BONDS

100

10,000,000

Not Quoted

India Infrastructure Finance Co.Ltd.

Tax Free Bonds of Rs.1,00,000/-each

500

Not Quoted

Not Quoted

Reliance Capital Ltd.

NCDs of Rs.1,000,000/-each

]{] <x E.

<b <x]ES <x E. .

1,00,000/- |iE E ECi b

500

50,000,000

<bx <x E{x

1,00,000/- |iE E ECi b

Indian Railway Finance Corporation

500
Tax Free Bonds of Rs.1,00,000/-each
={-M / SUB TOTAL
E +v E x / Total Long Term Investment

50,000,000
193,826,724
240,812,508

+xS b x
SCHEDULE D INVESTMENT

105,376,824
172,362,608

BOOK

E lli / As at

31.03.2010
. / (Rs.)

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

50,000,000

/ Grand Total

184

122,587,161

VALUE
lli / As at
31.03.2009
. / (Rs.)

125,235,047

122,587,161

125,235,047

46,985,784

66,985,784

26,985,771

26,985,771

20,000,013

40,000,013

193,826,724

105,376,824

2,173,073
191,653,651

2,034,806
103,342,018

334,240,825

268,577,078

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

lli

SCHEDULE E SUNDRY DEBTORS

v nxn

lli

/ As on
31.03.2010
. / Rs.

+xS "<' -- v nxn

/ As on
31.03.2009
. / Rs.

/ SUNDRY DEBTORS

v nxn / Sundry Debtors

a) U +vE +v E @h
Debts outstanding for a period exceeding six months

yr;Cq; YJk yAu btlu dY

Unsecured and considered good

428,842

6,162,896
-

7,162,896
-

6,162,896

7,591,738

6,162,896

6,938,176

653,562

mkr=" btlu dY
Considered doubtful
b) +x @h / Other Debts

P]B : nMv @h i |vx

Less : Provision for doubtful debts

lli

lli

/ As on
31.03.2010
. / Rs.

+xS "B' -- lfU=e YJk cfU NuM

SCHEDULE F CASH AND BANK BALANCES

htufU\z NuM / Cash In Hand

/ As on
31.03.2009
. / Rs.

5,675

1,028

6,158,800

2,645,546

50,000,000

50,000,000

56,164,475

52,646,574

ylwmqra; E fuU vtm NuM

Balances with Scheduled banks

atq Ft;u b / In Current Accounts

begt=e sbt Ft;u buk /

In Fixed Deposits Accounts

lli

SCHEDULE G OTHER CURRENT ASSETS

Stock-On-Hire

rfUhtY vh xtfU /

lli

/ As on
31.03.2010
. / Rs.

+xS "V' -- yg S ytr;gtk

/ As on
31.03.2009
. / Rs.

13,435,519

13,995,076

DxtYk & yr;=ug rJteg Cth

Less : Overdue Finance charges

2,720,908

2,777,968

10,714,611

11,217,108

P]B : EB { nMv ]E i |vx/

Less : Provision on doubtful stock -on-hire

rlJuN vh Wvra; gts

10,714,611

11,217,108

Interest accrued on Investment

2,655,822

686,095

6,867,934

1,807,982

7,468,900

3,529,493

51,000
17,043,656

47,500
6,071,070

begt=e sbt vh Wvra; gts /

Interest accrued on Fixed Deposit

tg c{tufUhus

Brokerage Receivable

yg / Others
185

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

+xS "BS' -- @h B +O

{i

/ Year ended
31.03.2010
. / Rs.

SCHEDULE H LOANS AND ADVANCES

xEn +l {h +l |{i EB Vx
i Vx +O

{i

/ Year ended
31.03.2009
. / Rs.

Advance recoverable in cash or in

kind or for value to be received

1,467,370

664,720

+i-E{] V
Inter-corporate Deposit

200,000

200,000

P]B : nMv V i |vx

Less : Provision on doubtful deposit

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

96,836,338

77,794,344

97,033

90,633

1,671,500
101,372

{VMi i |nk +O/Advance Paid for Capital Goods 1,464,000

P]B : nMv +O i |vx
Less : Provision on doubtful advance

101,372
1,464,000

1,464,000

1,464,000

+vE E @h B @h E ={Si V
Loan to Officers and Interest Accrued on Loans

+xS "+<' -- S niB

690,502

1,273,018

100,864,115

79,924,087

{i

/ Year ended
31.03.2010
. / Rs.

SCHEDULE I - CURRENT LIABILITIES

{i

/ Year ended
31.03.2009
. / Rs.

S niB / CURRENT LIABILITIES

v xn ( B +x)
Sundry Creditors (Expenses and Others)

6,473,703

1,312,273

60,831

60,831

6,534,534

1,373,104

|ii V / Security Deposit

+xS "V' -- |vx

{i

/ Year ended
31.03.2010
. / Rs.

SCHEDULE J - PROVISIONS

{i

/ Year ended
31.03.2009
. / Rs.

|vx / PROVISIONS
xk \ Retirement Benefits U]] xEnEh \ Leave Encashment
OS] \Gratuity
Bb B <+ E n |ix

220,882
808,459

Incentive Payable to MD & CEO

+xM E \ Fringe Benefit Tax

+ E \ Income Tax
+xVE +i \ Non Performing Assets
186

201,102
1,029,341

867,569

1,068,671

332,402

51,000

51,000

56,053,862

31,253,862

16,478,864
73,613,067

16,546,270
49,252,205

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

+xS "E' -- x +

{i

/ Year ended
31.03.2010
. / Rs.

SCHEDULE K INVESTMENT INCOME

{i

/ Year ended
31.03.2009
. / Rs.

x + / INVESTMENT INCOME
b BJk bS { V
Interest on Bonds and Debentures

11,055,891
278,500

+- Dividend Income - Shares

+ + Dividend Income 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

881,034
1,419,096

6,558,693
16,349,564
(26,360)

16,323,204

16,172,775
7,903,713
(1,765,018)

6,138,695

S+ b E
Diminution in value of Mutual Fund

34,216,288

+xS "B' -- |{i V

{i

/ Year ended
31.03.2010
. / Rs.

SCHEDULE L INTEREST RECEIVED

V + / INTEREST INCOME
n V { V (E)

Interest on Fixed Deposit(Gross)

[ ]bB-54,688 (Mi -x)]
[TDS - Rs.557,989/- (Pre. Yr. - Rs. 54,688/-)]
] @h { V / Interest on Staff Loan

+x + / OTHER INCOME
]x E E M |vx / Provision written back for
+x{V +i i
Non Performing Assets
/ Expenses
x +{/Diminution in Investment

26,809
(165,075)

78,541
5,696,482

84,659
1,947,329

1,278,142
6,750

Provident Fund Contribution and Admn. Charges

SEi / Medical Expenses
Bb B <+ E n |ix/
Incentive to MD & CEO
+x /Others

187

744,332
5,636

103,804
610,342

635,000
40,072,356

1,860,772

62,599,160

/ Year ended
31.03.2010
. / Rs.

EE Mi / PERSONNEL COST
ix / Salaries
xv +nx B |xE |

/ Year ended
31.03.2009
. / Rs.

21,142,704
(868) 21,141,836

{i

SCHEDULE N : PERSONNEL EXPENSES

{i

(138,266)

v + / Miscellaneous Income
{i +v E n / Prior Period Item

+xS "Bx' -- fUtrbofUt vh gg

/ Year ended
31.03.2009
. / Rs.

1,862,670

/ Year ended
31.03.2010
. / Rs.

SCHEDULE M : OTHER INCOME

{i

5,617,941

{i

+xS "B' -- +x +

(1,346,233)
23,265,367

{i

/ Year ended
31.03.2009
. / Rs.

2,552,094

2,501,756

236,091
321,771

178,959
72,614

293,671
3,403,627

332,402
327,062
3,412,793

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 / Printing and Stationery
mkJ"ol / Business Promotion Expenses
bE JS B ]x / Postage and Telephone
ES |Ih / Staff Training
i B +xIh / Repair and Maintenance
- j B x / - Plant and Machinery
- +x / - Others
S] EM JS / Merchant Banking Expenses
| / Insurance Charges
Y{x B |S / Advertisement and Publicity
+nx B ni E /

/ Year ended
31.03.2010
. / Rs.
470,794

{i

273,515

326,217

50,671

47,558

110,552

88,531

9,573

237,950

156,206

66,202

40,035
383,684

37,264
423,719

364,541

Subscription and Membership Fee

xnE E `E E E / Directors Sitting Fees

J{IE E {E / Auditors Remuneration
- J{I E / - Audit Fee
- E J{I E / - Tax Audit Fee
- J{IE E j B +x +iE J {I E
- Auditors Travelling and Others

B { E / Internal Audit Fees

B { E / Profession & Consultancy Fee
vE / Legal Expenses
xnE E j / Directors Travelling
[Bb E j . 136,623 i (Mi-137,195)]

401,805
776,944

12,440

5,374

92,459

16,188

1,112,029

446,071

62,500

12,500

27,575

22,060

7,721

7,721

100,209

/ Year ended
31.03.2009
. / Rs.
300,290

135,505

65,972

95,753

22,151

22,060

342,968

48,495

273,694

145,878

604,046

328,127

2,736

8,284

17,957

27,741

183,656

98,576

273,038
67,405

80,678
-

37,902

22,708

19,000

1,746,193

1,759,345

2,561,604

811,937

428,842

122,327

7,058,497

8,730,197

[includes MDs travel - Rs.247,681/- ( Pre.Yr. - Rs. 136,623/-) ]

E | / Bank Charges
v / Miscellaneous Expenses
b `E / Board Meeting Expenses
E Fao / Office Expenses
+{Ji Vb +i
Leased Assets Written Off

Si +i E G { x
Loss on disposal of Fixed Assets

ytuxeYm vh ntrl/ Loss on OTS

=h YJk fUh/ Rates and Taxes
Bx{B i |vx / Provision for NPA
nMv @h i |vx / Provision for Doubtful Debts
+v @h +{Ji / Bad Debts written off

188

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

(b) Use of Estimates

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 *

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.

+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 *

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.

(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>

(c) Revenue Recognition

(i)

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.
Lease Rentals are considered on the due dates in terms
of lease agreements.

tes fUhth fuU ylwmth =ug r;r: E tes rfUhtY { rJath

E Vi *
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>
il{ E{x + h-* S] E E { {VEi M<
il SE E{x + E< BS{ B VM E x E
, +iB =x M EM k l E { +{x <
{ E n *
(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
fkUvle tht :tvlt vh rfY dY gg mrn; yat ytr;gt fUt
vkqsefUhK ttd; vh ntu;t ni>
(R
R) vxTxu vh te dRo ytr;gtk
R
f{g fUe dRo YJk vxTxu vh =e dRo ytr;gt fUt vqksefUhK :tvlt
ttd; YJk :tvlt gg vh rfUgt dgt ni>

Lease Finance

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.
However, the Company has now Registered itself as a
Category I Merchant Banker and has surrender NBFC
license since the Company is not doing any HP and Leasing business.
(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
Fixed Assets are capitalized at cost inclusive of installation expenses as incurred by the Company.

(e)

189

Leased Assets
Assets purchased and given on lease are capitalized
on installation at cost and installation expenses.

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

(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>

(ii)

+i +i E {S E +v +l n ={M +v
{S E i +{IEi E +v v J |h
{vi E Vi *
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> dtRzum ltux tht rlvhK
fuU ylwmth vxTxt mbfUhK tuFt YJk vxTxt mbtgtusl Ft;u fUt
rlbtoK rfUgt dgt 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>

(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. Lease
Equalisation Account and Lease Adjustment Account
have been created as prescribed by the Guidance Note.
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

(U) rlJuN
=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>
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>

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.
Current Investments are valued at the lower of cost and market value.
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.

rJNuM gtgttg (r;Cqr; tul-=ul mkcDk e 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.

z S+ =i{n Vx Vxv BE +vE ,

x E nPEx x x M *

Investments made in various Mutual Funds where duration of

scheme exceeds one year have been considered as Long Term
Investment.

(V) rJJufUvqKo btl=kz

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>

(h) Prudential Norms

(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>

(i) Sundry Debtors

(\) 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>

(j)

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.
Amount due/ receivable but yet to receive at the end of the
year on account of Lease, Hire Purchase, third parties etc.
are debited to Sundry Debtors Account and credit to respective income/ assets account.
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 assets
is treated as Non Performing Assets and no income is considered in the accounts.

190

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

ttC YJk ntrl Ft;u fuU ltbu zttfUh ylwvgtug ytr;gt nu;w tJvtl
rfUgt st;t ni>
(]) yvrhvJ rJt Cth &
tg fwUt htrN ytih Wm W=T=ug nu;w rlJurN; htrN E +i E E
yvrhv rJt Cth b sbt fUe stYde> =ug ytih/y:Jt Jmqte dRo
htrN ytg btle stYde> ytr; fuU ylwvgtug ytr; ntu stlu fUe r;r:
mu mkrJ=t fUe mbtrt ;fU tg ytg =ugt fuU ykr;b mbSti;u fUe r;r:
;fU tg htrN g:tJ; hnude>

Provision for a Non-Performing Asset is made by debiting

Profit & Loss Account.
(k) Unmatured Finance charges
The difference amount between total amount receivable and
amount invested for that purpose is credited to Unmatured
Finance charges. Amount due and/ or realized is treated as
income. Amount receivable from the date of Assets becoming
Non Performing Assets upto the date of expiry of the contract
will remain as it is till the date of final settlement of the dues.

(`) tes mbtgtusl Ft;t ytih tes mbfUhK Ft;t &

(l) Lease Adjustment Account and Lease Equalisation

Account

V +i E |vx il Ji |i fuU yk;h

fUtu tes mbfUhK Ft;u fuU ltbu ztt;u nwY tes mbtgtusl Ft;u b
yk;rh; rfUgt stgudt> fw es mbtgtusl Ft;t es ytg fuU bqg
fUtu fUb fUh;t ni> ytr; fuU ylwvgtug ytr; b vrhJr;o; ntulu y:Jt
tes fUe mbtrt fUe r;r: ;fU tes mbtgtusl Ft;t m]rs; rfUgt
st;t ni>

The difference between principal recovery in case of lease

assets and depreciation charged in the accounts is transferred
to lease adjustment Account by debiting Lease Equalisation
Account. Total of Lease Equalisation Account reduces the value
of lease income. Lease Adjustment Account is created upto
the date of assets becoming Non Performing Assets or
termination of lease.

(b) +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
(f ) ES
ES ES u |nx E M< E ={Si i
* xvi +nx Vx+ l xv +nx E +Yx
+nx nx { E Vi *

(m) Impairment of Assets

{i Vx V OS] + +E xEnEh E +iMi

nP EE ES EE iExE E |M EE n
E ix { E {i { xvi E Vi *
(h) + { 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 *
(i) |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 *

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.
(n) Employee Benefits
Employee benefits accrued in the year for services are
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
accrual techniques.
(o) 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.
(p) Provisions , Contingencies and Contingent Assets
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.

191

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

AllBank Finance Ltd.

ylwmqae ICO & 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 :
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>
Disputed Income Tax liability in respect of matters pending before various Appellate authorities where the Company
expects to succeed.

bqgtkfUl JMo

Assessment Year

31.03.2010

31.03.2009

Income-Tax

Income-Tax

ytgfUh

ytgfUh

2002-03
2003-04
2004-05
2005-06
2006-07
2007-08

344.18
620.55
109.79
38.06
29.99
66.47

344.18
554.69
1,252.16
38.06
29.99

E / Total

1,209.04

2,219.08

E xvh 2003-04 + 2004-05 i E ni E +Ec

{ix +vx +{ { BBB + +i] {IE E
{I +l r {i +n E Eh + *
(E) fkUvle fuU rJh } K fuU v b JefUth ln rf Y dY =tJu&
h. 1175.76 ttF (vqJo JMo h. 1175.76 ttF)
(J) 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 *
(M) 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 *
(P) 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 *

The change in the figure of the tax liability for the assessment
year 2003-04 & 2004-05 is due to order passed against or in
favour of ABFL and the party aggrieved, preferred appeal.

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>

2.

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.

3.

+O +E, i { E E]i il |{ +E {
lli 31.03.2010 E 779.86 J (31.03.2009 E .
664.60 J) * Ex B +{ E z
;ht { Vx i i *

3.

Advance income tax, tax deducted at source ,income tax

refund receivable, interest tax refund receivable and advance fringe benefit tax amounted to Rs. 779.86 lakhs as
on 31.03.2010( Rs. 664.60 lakhs as on 31.03.2009 ) are
pending adjustment at various stages of assessments and
appeals.

(a) Claims against the Company not acknowledged as Debts:

Rs.1,175.76 lakh. ( Previous Year Rs.1,175.76 lakh)
(b) 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.
(c) 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.
(d) A case has been filed by a private limited company for
effecting sale of The Orrisa Minerals Development Company Ltds share to them. According to legal opinion, the
Company believes that the case is not maintainable.

192

J E Ctd E { +xS

+E <xx .

Schedules Forming Part of the Accounts

4. +x

+ E +iMi {U +v E n E h

AllBank Finance Ltd.

\ Details of Prior Period Items under Other Income

(. )

( In Rs. )

2009-10

2008-09

EV + / Brokerage Income
]x E x i |vx / Provision for Investment Written Back
]x E Bx{B i |vx / Provision for NPA Written Back
S+ b x { / Dividend on Mutual Fund Investment
E G { / Profit on Sale of Share

6,10,342

8,29,812

E / Total

6,10,342

4,00,72,356

2009-10

2008-09

7,14,92,466

9,41,70,706

15,00,000
15,00,000

15,00,000
15,00,000

15,00,000
100

15,00,000
100

47.66

62.78

3,83,53,487
30,752
11,35,821
(-) 2,77,516

5.

E {Si (x] E { |H) /

E + <C] E J /

Profit after Tax ( used as Numerator )

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 / Nominal value of Equity Share Rs.

|i + b<]b +Vx / Basic and diluted earnings per Share Rs.

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
|ix / Incentive
+x / Other Benefits
OS] i |vx / Provision for Gratuity

E / Total
J) S E E{x E E +vE bM E{x E E{]
+Vi E M l + E i{h x +i:
Bb Bb <+ x n E i E +x n .1,70,263E |ix E SU Ucx E xh *

( In Rs. )

2009-10

2008-09

6,00,000

6,00,000

2,40,000

2,40,000

72,000

72,000

3,32,402

2,21,592

3,23,042

28,846

28,846

11,62,438

15,96,290

b) Since the majority of the profits of the Company are earned

through captive business of the Holding Company and core
business has not been significant, MD & CEO has voluntary decided to forgo incentive of Rs. 1,70,263/- payable
as per the terms of contract.

193

J E Ctd 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:

31.03.2009 E lli

(Charge ) Credit

31.03.2010 E
lli

for the year

As on 31.03.2010

53,68,730

33,900

5,402,630

53,68,730

33,900

5,402,630

As on 31.03.2009

i @h (|)

E Eh +lMi E ni
Deferred Tax Liability on account of depreciation

Bx{B + +v @h { |vx E Eh +lMi E +i

Deferred Tax Assets on account of provision on
NPA and doubtful debts

+lMi E +i/niB (x)

Deferred Tax Assets / Liabilities (Net)

9. + + E +{iEi ={v Sx E +x EB

9.

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.

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

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

bM E{x

Holding Company

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
@h / Debtors
xn / Creditors

2009-10

2008-09

56,17,941

18,62,670

2,35,546

8,98,687

2,62,111

2,68,165

5,00,00,000

5,00,00,000

61,58,800

26,45,546
4,28,842

59,511

194

21,000

|J |vx EE
Key Management Personnel
2009-10

2008-09

11,62,438

15,96,290

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 *

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. BE S Ji E E {] E +vvx *

12. Balance of one current account is subject of confirmation

from Bank.

13. |vx E , E{x E x S +i,

@h B +O E Mi V E E ix {j
n< M< E *

13. 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.

14. ix {j E iJ E lli {]]Ei E |iE

{]] Vx Ji E E Si E o
M *

14. As on balance sheet date, the balance of lease adjustment account of each group of leased assets is merged
with the corresponding balance of accumulated depreciation.

15. 2008-09 E J{I {] EB MB J{I

]{{h E +x x E bM V ]] ]-3,408
<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
( S |{i EB MB)*

15. As per the audit observation made in audit report of the

year 2008-09, separate depository account vide client ID
- 10123882 with Allahabad Bank, Fort Branch Depository,
has been duly opened in regard to the holding of investments, such as Tata Motors 3,408 equity shares & Winsome Yarns 78,000 equity shares (shares received during the current year)

16. i vx < M< E =c x b{] E. . E

6,600 <C] {i <n E xxV . u
J MB * SE <C] +I x l +i: E{x
x Exx |G E v E{x E x b{E]
|h{j |{i EB CE ++ E +J E +x
<n E xxV . E x n E E{x E x
E n M l* B x Vi E E{x E
iE vE + < |E < vi E{]
E En * il{ E V E { +Yi
x E Vi CE < BE Exx |x =` i E C
+i + {k +xx { E{x u vi E Vx
*
17. Mi E +Ec E V E +E Z M
{xli + {xi E M V ix E
o +Ec ix E V E*

16. It was brought to the notice that 6,600 equity shares in

The Orissa Mineral Development Co. Ltd. were held by
erstwhile Allahabad Bank Nominees Ltd. Since the original equity shares were not in the custody, the Company
through the process of law obtained duplicate share certificates in the name of the Company because of the fact
that the name of Allahabad Bank Nominees Ltd. was
changed to the Company as per the records of ROC. It is
believed that the Company is a bonafide holder of the
shares and as such entitled to all the corporate benefits
there to. However the dividend is not recognized as revenue, as it involves question of law whether the assets
and properties are to be exclusively held by the Company.

+xS B C E iIEi
il E {] E u
Ei b Bb
xn JE

Signatories to the Schedules A to Q

Vide our Report of even date

For De & Bose
Chartered Accountants

i n
Subrata De

17. Previous years figures have been rearranged / regrouped

wherever necessary, to make those comparable with the
corresponding figures for the current year.

V. {. n+

|n +EE

{. E. M{i

J. P. Dua

Prasad Akolkar

P. K.Gupta

+vI

B b Bb < +

xnE

Chairman

MD & CEO

Director

{]x

+Vi {x
E{x S

Partner

m=g;t mk. / Membership No. 54962

Abhijit Pashine
Company Secretary

lx / Place : EEi / Kolkata

nxE / Dated : 26.04.2010

195

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

E{x E x / Name of the Company

I.

II.

III.

+E <xx ]b / ALLBANK FINANCE LTD

{VEh / Registration Details

{VEh . / Registration No.U67120WB1951GOI020023 VE] / State Code : 21
ix{jil / Balance Sheet Date 31.03.2010
E nx +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 Rs. Thousand)

E niB / Total Liabilities

: 526,038
E +i / Total Assets
xv E i / Source of Funds :
|nk {V / Paid-up Capital (Rs.)
: 150,000
+Ii B +v / Reserves & Surplus
|ii @h / Secured Loans (Rs.)
: x / NiL
+|ii @h / Unsecured Loans
xv E |M / Application of Funds :
x +S +i / Net Fixed Assets (Rs.) : 17,725
x / Investments
x S +i / Net Current Assets (Rs.) : 93,925
v / Misc. Expenditure
S x / Accumulated Losses (Rs.) : x / NiL
IV. E{x E E x{nx (. V ) / Performance of the Company (Amount in Rs. Thousand)
]x + / Turn Over (Rs.)
: 106,934
E / Total Expenditure (Rs.)
E { /(x)
Profit/(Loss) Before Tax :

: 526,038
:

295,891

x / NiL

: 334,241
:

x / NiL

: 10,626

: (+) 96,308

E E n /(x)
Profit/(Loss) After Tax :

: (+) 71,492

|i + (. )

Earning Per Share (in Rs.)

V.

/ Dividend Rate %

x / NiL

: 47.66

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 Class I Merchant Banker.
ctuzo fuU rY YJk fUe ytuh mu
For and on behalf of the Board

su. {. =qqyt
+vI

|n +EE

/ J. P. Dua

{. E. M{i

/ Prasad Akolkar

ck" xnE B <+ / Managing Director & CEO

/ Chairman

+Vi {x / Abhijit Pashine

E{x S / Company Secretary

/ P. K. Gupta

xnE /Director

lx / Place : EEi / Kolkata

nxE / Dated : 26.04.2010

196

AUDITORS REPORT

J{IE E {]
muJt b m=gdK,

TO THE MEMBERS

+E <xx ]b,

AllBank Finance Limited.

1.

x 31 S, 2010 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 *

1. We have audited the attached Balance Sheet of AllBank

Finance Limited as at 31st st March , 2010 , 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.

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 *

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.

3.

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.

4.

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.

5.

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.

={H {] E {O 3, 4, 5 + 6 ]{{h E
+, {] Ei E :

6. Further to our comments in paragraphs 3,4 ,5 and 6 above,

we report that :

E) x SxB B {]Eh |{i EB V

k VxE B E +x J{I E |Vxl
+E l*

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;

197

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;

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 *

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
, E J xE BB-15 (ES ) E UcE
V OS] + +E xEnEh V {i l
VxB VxE +iMi nPEE ES E
xvh EE {ri E lx { ={S {ri E
|M EE E Vi *

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 except in case of Accounting
Standard AS - 15 ( Employee Benefits ) where long
term employee benefits under defined benefit schemes
such as gratuity and leave encashment are determined
using accrual method.

R) xnE |{i Ji +nx il b E Eb E

+x, Si Ei E 31 S, 2010 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, 2010 from being appointed as a
director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;

S) il k VxE + nB MB
{]Eh E +x Eli k J 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 :

f)

In our opinion and to the best of our information and

according to the explanations given to us, the said financial statements together with notes thereon and
attached thereto give in the prescribed manner the
information required by the Companies Act, 1956, and
give a true and fair view in conformity with the accounting principles generally accepted in India:

ix-{j E , 31 S 2010 E E{x E

li;
-x J E , = iJ E {i
i E{x E ; il
xEn | h E , = iJ E {i
i xEn |*

i)

in the case of the Balance sheet, of the state of affairs

of the Company as at March 31, 2010;

ii)

in the case of Profit and Loss Account, of the profit for

the year ended on that date ; and

i)
ii)
iii)

:tl& EEi
nxE : 26.04.2010

i b
{]x
ni . 54962
Ei b Bb
xn JE

iii) in the case of the Cash Flow Statement , of the cash

flows for the year ended on that date.

Place : Kolkata
Date: 26.04.2010

198

Subrata De
Partner.
Membership No. 54962
For & on behalf of
DE & BOSE
Chartered Accountants

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 { nJx E B Si Eb E JJ
E *
(J) {] E M E E n x |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<*

1. a. The Company has maintained proper records

showing full particulars including quantitative details
and situations of its fixed assets.

(M) + nB MB {]Eh E +x JMo

fuU =tihtl fkUvle lu yvle rfUme ya mvrt E c
M fUt rlvxtl ln rfUgt ni>

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. 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 |iXx {]
E/ x E< |ii +|ii @h n x =x
*
(J) B V E{x x E Jn +l {]]
E E +iMi +O n , V n B +x i B
+xv, |l oT E{x E i E |iE x *

2. The nature of business of the Company does not warrant

holding of inventory.

(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 *

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 {{i En
=`B MB *

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. 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< *

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. 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 Mi ={v + =E +iMi xB MB
x E +iMi + Vxi E< V E x E
*

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.

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.

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.

199

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 *

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.

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.
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, 2010,
not deposited on account of dispute, are as under:

(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*
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 2002-03

+<.].B.]. EEi S

Income Tax
Act, 1961

Income Tax
A.Y. 2002-03

+E
+vx, 1961

+E
xvh 2003-04

+<.].B.]. EEi S

+E
+vx, 1961

+E
xvh 2004-05

+<.].B.]. EEi S

+E
+vx, 1961

+ E
xvh 2005-06

+E +H (+{)

+E
+vx, 1961

+E
xvh 2006-07

+E +H (+{)

+E
+vx, 1961

+E
xvh 2007-08

+E +H (+{)

Income Tax
Act, 1961

Income Tax
Act, 1961

Income Tax
Act, 1961

Income Tax
Act, 1961

Income Tax
Act, 1961

Income Tax
A.Y. 2003-04

Income Tax
A.Y. 2004-05

Income Tax
A.Y. 2005-06

Income Tax
A.Y. 2006-07

Income Tax
A.Y. 2007-08

I.T.A.T. Kolkata Bench

I.T.A.T. Kolkata Bench

I.T.A.T. Kolkata Bench

Commissioner of Income
Tax ( Appeals )

Commissioner of Income
Tax ( Appeals )

Commissioner of Income
Tax ( Appeals )

(. J )
Amount ( Rs. in lacs )

334.18

620.55

109.79

38.06

29.99

66.47

10. E{x E 31 S 2010 E E< S P] x + =

il E {i k = iiE { E E<
xEn P] x =X

10

The Company has no accumulated losses as at 31st

March,2010 and it has not incurred any cash losses in
the financial year ended on that date and in the immediately preceding financial year.

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 *

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.

200

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

19. E{x x E< bS V x E * inx, +n E

Jb 4(xix) E |vx E{x { M x *

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

20. E{x x E n x {E < E VB vx E =M x

E *

The Company has not issued any debentures.

Accordingly, the provisions of Clause 4 (xix) of the Order
are not applicable to the Company.

20

The company has not raised any money by public issue

during the year.

21. i xi Ei J{I {{] E +x

u E{x E +J + E VS E n x +
n M< Sx + {]Eh E +x E n x x i
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P]x x +<, x <E VxE , x B E<
{] E M< + x |vx u B E P]x E
Sx n M< *

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.

lx : EEi
nxE : 26.04.2010

Place : Kolkata
Date: 26.04.2010

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ni . 54962
Ei b Bb
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201

Subrata De
Partner.
Membership No. 54962
For & on behalf of
DE & BOSE
Chartered Accountants

Allahabad Bank

<n E

Head Office: 2, N. S. Road

Kolkata 700 001

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

ATTENDANCE SLIP-CUM-ENTRY PASS FOR

EIGHTH ANNUAL GENERAL MEETING
Date
:
10th June, 2010
Place
:
Eastern Zonal Cultural Centre
Bharatiyam Cultural Multiplex
IB-201, Sector III, Salt Lake City
Kolkata 700 106

+] E x `E i ={li {jE--| {j
nxE : 10 Vx 2010
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EEi 700 106

={li {S

ATTENDANCE SLIP
(To be surrendered at the time of entry)

(| E V Ex i)
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

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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 nx ={/={ 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.
202

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x *

ii)

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E +x *

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lx : EEi
nxE : 30.04.2010

203

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 2009-2010 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 2009-10;

(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.

(A. B. Bhattacharjee)

( J. P. Dua)

General Manager ( F & A)

Chairman & Managing Director

Place: Kolkata
Date: 30.04.2010

204

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205

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 Eighth Annual General
Meeting of the Shareholders of the Allahabad Bank to be held on Thursday, the 10th June 2010 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 2010

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 Eighth Annual General Meeting, i.e. on or before the
close of business hours on Saturday, 5th June, 2010.
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.

206

-----------------------------------------------------------------------------------------------------------------------------------------------------------&
&
&

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

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E. E E x

: ______________________________

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{i(E +vn i)

: ______________________________

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E + J E 9 +E E E]

: ______________________________

P.

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: ______________________________

b.

SEE =Ji Ji J

: ______________________________

S.

vE E B]b Eb + ]x J

: ______________________________

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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 ]
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E v V Ex i E J B E ii x SB*

207

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

208