CONTENTS
Chairman's Letter to Shareholders Board of Directors Snap Shot of Key Financial Indicators : 2005-2009 Highlights Directors' Report Management's Discussion and Analysis Auditors' Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules Forming Part of the Balance Sheet Schedules Forming Part of the Profit and Loss Account Notes to Accounts Information with regard to Subsidiaries Auditors' Certificate on Corporate Governance Corporate Governance Auditors' Report on Consolidated Financial Statements Consolidated Financial Statements Disclosures under the New Capital Adequacy Framework (Basel II Guidelines) List of Branches and Extension Counters List of Grantees - Partner NGOs 3 7 11 15 16 29 49 50 51 52 54 61 62 98 99 100 121 125 157

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and productivity and efficiency levels (whether measured by Return on Assets or Return on Equity or Profit per Employee) have risen well over the year.36 crores. Nayak Chairman & CEO 20th April 2009. 3 . The Axis Bank Foundation was set up in 2006 to provide philanthropy. companies are driven by different philosophies. Milton Friedman put it) to the instrumentalist attitude which gives back to society in ways which could benefit the business prospects of the corporate enterprise. they often seek to give back a part of their earnings to society.50% to Rs. 1.CHAIRMAN & CEO'S LETTER TO THE SHAREHOLDERS As companies grow more profitable. From the narrowly minimalist approach which argues that this is not the function of a corporate enterprise (“the business of business is business” as the economist. and in several pages we describe the exceptional endeavours of NGOs which the Foundation supports through the lives of those who benefit. J. Your Bank transfers each year 1% of its net profit for the previous year to the Foundation. the Bank finds itself competitively positioned in several of its key businesses. this being the maximum which the RBI permits. This is a good time for your Bank to be 'giving back'. The trustees who run the Foundation have focused on education for underprivileged children. and these are largely supported by programme grants so that projects become replicable. its assets grew 35%.815. and is registered as a public trust. to pure philanthropy wherein the objectives of corporate social responsibility are set independently of what might benefit the corporate enterprise. Most of all. Attitudes to doing so vary. and this should augur well for the year ahead. Its Net Profit rose 69. Giving Back is therefore the theme of this Report. for it has just completed a very successful year. P.

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V. Tel. 3rd Floor. Subbiah Ramesh Ramanathan K. R. No. Bajaj Snehomoy Bhattacharya P.400 005. : 040-23420814 Registered Office : 'Trishul'. Hyderabad . B. Singhal A. Subramanian Rajagopal Srivatsa S.oza@axisbank. Supekar B. Mitra C. Babu Joseph Sonu Bhasin R.: 022-67074407 Fax No.Credit President . Ellisbridge.axisbank. S. Madhapur. K.International Banking CEO and Executive Trustee. V. Nayak N. K. 17 to 24.East Zone President .: 022-2218 6944/2218 1429 7 Executive Director (Corporate Banking) Executive Director (Technology & Business Processes) Executive Director (Mid Corporate Banking) Executive Director (Retail Banking) President . Prithviraj P. Batliboi & Co. Samartheshwar Temple.380 006.com/rajendra.BOARD OF DIRECTORS (As on 31 March 2009) P.West Zone President . 13th Floor. No. J.: 040-23420815 to 23420824 Fax No. Karvy Computershare Private Limited UNIT : AXIS BANK LIMITED Plot No. Opp.500 081 Tel. Pannir Selvam J.com Central Office : Maker Towers 'F'.Finance & Accounts President & Chief Compliance Officer President . Patil Rama Bijapurkar R. Mumbai . H.Law President . Ahmedabad . Ramani S.swaminarayan@axisbank. Nandi S. Agrawal V. K. Vaish M. K.Advances President . S.Business Banking President & Chief Audit Executive President . Vithalrao Nagar. R. Varma R.Retail Banking President . Axis Bank Foundation President .Retail Financial Services President . Cuffe Parade. Bammi S. No. Oza Chairman & Chief Executive Officer Director Director Director Director Director Director Director Director Director Company Secretary st THE CORE MANAGEMENT TEAM M. M. Colaba. P. Law Garden. T.: 079-2640 9322 Fax No: 079-2640 9321 Email : p. Rangarajan M/s. L. C.South Zone Auditors Registrar and Share Transfer Agent .Treasury President . Chartered Accountants M/s.Human Resources President . Chakrabarti Hemant Kaul Somnath Sengupta S. N. Gopalakrishnan Manju Srivatsa Bapi Munshi C. Mukherjee Vinod George M.com Web site: www. K. J. K. Tel.North Zone President .

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69% 9.60 12.876.69 2005 .78 46.57% 6.18 415.2006 40.49% 2008 .88 6.03 2.92% 42.527.50 22.214.183.712.Retail Advances Total Investments Shareholders' Funds Total Assets / Liabilities 2004 .10 8.35 1.2005 14.38 565.83 15.) Dividend Payout Ratio 2004 .10% 11.686.82 1.225.585.743.33 1.2007 58.2009 50.821.73% 10.00 581.87% 2.95 25.22 2007 .68 15.02 2.68 33.88 1.42% 4.58% 46.2006 17.705.577.93 21.66% 8.84% 55.41 20.661.78% 35.14 16.393.44 7.065.408.591.50 120.04 334.2008 32.) Return on Equity Return on Assets Capital Adequacy Ratio / CAR Tier I Capital (CAR) Dividend Per Share (in Rs.896.50 23.90% 39.18 37.Current Account Deposits Total Advances .90% 42.583.51% FINANCIAL RATIOS Earning Per Share (Basic) (in Rs.35 10.80% 39.213.26% 10.09 2.468.147.602.125.14% 58.00 23.58 59.61 81.982.314.010.330.20% 2006 .731.14% 43.374.154.263.2007 23.92 4.Savings Bank Deposits .21% 12.45 103.380.626.078.17% 6.478.65% Net Interest Income Other Income Operating Revenue Operating Expenses Operating Profit Provisions and Contingencies Net Profit 731.048.00 4.16 3.46% 35.17% 50.815.927.890.05 993.14 13.49 4.59 1.909.92 1.00 23.35 2.08 1.807.785.154.113.23 73.44% 13.84% 1.154.39% 45.2009 117.48 8.23% 2005 .18% 11.31 36.86 7.61 284.32 87.58% 2007 .08% 7.724.489.12 24.53 8.2005 31.03 3.768.970.15 245.89 1.2008 87.80 26.70% 54.044.06 18.52 1. in crores) FINANCIAL HIGHLIGHTS Total Deposits .50 19.11 2.795.82 659.92 2.05 CAGR (5 Years) 41.11 25.88 11.21 3.86 814.858.59 147.63 1.09% 1.722.19 49.SNAP SHOT OF KEY FINANCIAL INDICATORS : 2005-2009 (Rs.77 16.44 1.556.73 485.44% 1.50 109.071.22 19.58 1.21 2.85 2008 .051.) Book Value (in Rs.304.23 729.85 604.23 6.872.08 22.81 508.16% 11 .26% 3.93% 1.84 2.822.257.54 26.24% 13.12 2006 .85% 1.50 21.62 231.36 44.897.

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77 crores Retail Assets up 18. 1.78 crores Network of branches and extension counters increased from 671 to 835 Total number of ATMs went up from 2764 to 3595 Net NPA ratio as a percentage of net customer assets down to 0.HIGHLIGHTS Profit after tax up 69.11 crores Demand Deposits up 26.70% to Rs. 50.63% to Rs.35% from 0.36% Earning per share (Basic) increased from Rs.95% to Rs. 2.69% as against the minimum regulatory norm of 9% 15 . 1.61 Proposed Dividend up from 60% to 100% Capital Adequacy Ratio stood at 13. 16.50% to Rs.02 crores Deposits up 33.15 to Rs.21 crores Fee & Other Income up 63. 50.686. 32.051. 3.17.374.52% to Rs. 81.58% to Rs.556.815.643.73 crores Advances up 36.523.36 crores Net Interest Income up 42.10% to Rs.

68 46.66 969. 10. FINANCIAL PERFORMANCE The Bank has delivered a strong performance in 2008-09 in the backdrop of widespread turbulence in the global financial markets as well as a slowdown of economic growth in India.384.63% 33.577.69% 64.02 lacs Rs.70% 18.10% 42.821.78 65. credit substitutes and unamortized cost of assets leased out.11% 51.996.686. The Bank's strategy of building customer franchises and tapping into the opportunities within those franchises for growing its business continues to deliver strong results. provisions and tax Depreciation Provision for Tax Other Provisions & Write offs Net Profit Appropriations : Transfer to Statutory Reserve Transfer to Investment Reserve Transfer to Capital Reserve Proposed Dividend Surplus carried over to Balance Sheet (1) Excluding Merchant Exchange Profit 2008-09 1. Previous year figures have been regrouped wherever necessary.84 251.722. in crores) PARTICULARS Deposits Out of which • Savings Bank Deposits • Current Account Deposits Advances Out of which • Retail Assets • Non-retail Advances Total Assets/Liabilities Net Interest Income Other Income Out of which • Trading Profit (1) • Fee & other income Operating Expenses excl.11.44% Rs.72 420.84 939.626.03 267. 16 .07% 3.79 Growth 33.64 1.09% 2.896.06 146.11 25.32% 68.47% 16.17 crores 0. Productivity ratios are based on average number of employees for the year. 10.83% 36.47.55 3. Auditors' Report and the report on business and operations of the Bank for the financial year ended 31st March 2009.33% 19.585.39 lacs Rs.669.071.504.14 13.85 2.84 0.77 16.822.52 794.58% 61.36% Working funds represent average total assets.22% 23.17.12 24.57% 1.02 2.661.64 524.99 1.95% 1.03 158.76 26.11 575.21 2.41 20.374.50% 446.58 59.59% 62.069.81 2.36 453. Customer Assets include advances.93% 2.88 373.05 3.59% 2.30% 3.34% 47.08% 2.556.19% 34.523.61 81. Financial highlights for the year under review are presented below: (Rs.815.22 19.59 1.24% Rs. depreciation Profit before depreciation.35 1.982.54 188.051.22 2007-08 87.95% 29.25 579.35% 2007-08 8.DIRECTORS' REPORT: 2008-09 The Board of Directors has pleasure in presenting the Fifteenth Annual Report of your Bank together with the Audited Statement of Accounts.86 2.43% 63.50% 69.16% 19.65% 67.68 1.90 1.09.913.60 crores 0.591.11% 69.541.795.044.34% KEY PERFORMANCE INDICATORS Interest Income as a percentage of working funds* Non-Interest Income as a percentage of working funds Net Interest Margin Return on Average Net Worth Operating Profit as a percentage of working funds Return on Average Assets Profit per employee** Business (Deposits less inter bank deposits + Advances) per employee** Net Non performing assets as a percentage of net customer assets *** * ** *** 2008-09 8.46 1.49 253. 8.81% 42.

141 crores from Rs. 6. The core income streams (NII.80 crores in the previous year. 2.34% to Rs.19% in the previous year.90 crores in the previous year. The main constituents of fee income are service charges for account maintenance. 34. trading profits and miscellaneous income also showed impressive growth.50% from 6. Of this. 253.37% (Rs.35%.63% to Rs. increasing by 61. the growth of demand deposits (which on a daily average basis increased by 33.541. the total income of the Bank increased by 56.154.84 crores in the previous year. During the year.47% in the previous year. evident from a decline in the cost: income ratio to 43. syndication and placement fees and fees earned on the processing of loans and on non-fund based business.42% from 49.36% which.686. the daily average cost of funds in the year rose to 6. exchange profit earned on merchant foreign exchange business has increased by 57. During 2008-09.09 crores from Rs.800. reflecting the stability as also the sustainability of the Bank's earnings.51%. Fee and miscellaneous income (including exchange profit earned on client-based merchant foreign exchange business) rose by 63. 2. while fee and other income increased by 61.37% in Q1. proprietary trading profits increased by 47.59 crores in the previous year. fee income from cash management services.15 crores in the previous year. 936 582 414 17 .34%. Other income. Although this gain in NII was partly offset by the hardening of interest rates. During the year.04% to Rs. which reflected the growth of the Bank's network and other infrastructure required for supporting existing and new businesses. the net interest margin (NIM) declined by 14 basis points to 3. During the same period.664 crores in 2008-09). the operating revenue of the Bank increased by 50. Q2. Q3 and Q4 respectively.858.03 crores in the previous year. During 2008-09. 1.92 crores in the previous year.35 crores in the previous year.34% to Rs. 1. 174.81% to Rs. 2.49 crores in the previous year. fee and miscellaneous income) constituted 94.523. 4.071.795. partly offset by a lower increase in operating expenses of 33. was offset by an increase in cost of funds by 48 basis points. 3.585.The Bank continues to record an impressive year-on-year performance.36 crores from Rs. 25. there was an improvement in operational efficiency. 3.36 crores for the financial year 2008-09 against Rs.27% to Rs. 1.32% of the operating revenue of the Bank. 2. 13.795. inter-change fees on ATM-sharing arrangements.69%.583.33% from 3.12% and 3. The operating expenses (including depreciation) increased by 32.380.732.88 crores in 2008-09 from Rs.02 crores from Rs.50% in net profit was mainly due to an increase in net interest income by 42. 1. 8. The overall performance in 2008-09 was supported well by a healthy rise in core income streams such as net interest income and fee income. 2. largely driven by substantial increase in both net interest income (NII) and in fee and other income. 3.21 crores from Rs. 1.896.88 crores from Rs. 2.49 crores in the previous year. comprising fees. 274. NII grew by 42.58% and non-interest income by 61. The growth of NII may be attributed to an expansion in the balance sheet size. the NIM was 3. 1. On a quarter-on-quarter basis. Fee income is a significant part of the earnings of the Bank and is generated through a diverse set of businesses in the Bank.10. During the year. fees on distribution of third-party personal investment products. the yield on earning assets increased by 37 basis points to 9. with average earning assets in the year increasing by 48. 74. however.896. primarily due to a steep rise of interest rates on term deposits in the third quarter when liquidity concerns were at a peak.21 crores from Rs.815. The YoY growth of 69.08 crores from Rs.38% to Rs. Overall.43% to Rs.515 crores in the previous year) helped the Bank contain the cost of funds.73% from 9.64% to Rs. earning a net profit of Rs.589 crores in 2007-08 to Rs.86 crores from Rs. particularly in the second half of the financial year.02% in the previous year.58% to Rs. 373.

051.46 crores in the previous year.42% to Rs. The Bank has provided Rs. This was in addition to the existing branches at Singapore. 579. The Bank has also opened a Representative Office in Dubai during the year. 245. 31. 65.88 crores from Rs.93% from 16. As on 31st March 2009.44% from 1. Return on Average Assets improved to 1. held to meet the Bank's SLR requirement.15% of total deposits as on 31st March 2009. thereby taking the ATM network of the Bank from 2. corporate advances (comprising large and mid-corporates) increased by 41.39 crores. the Bank opened 831 ATMs. During the same period. Book Value per share has improved by 16.53% to Rs. During the period.34% to Rs.90 crores. Other investments.626.99 crores in the previous year. 46.210. including corporate debt securities. 18 . During the year.47.076. 16.821.95%. 25.46 crores towards restructuring of assets.77 crores from Rs.52% to Rs. lending to agriculture. The Bank's total balance sheet size increased by 34.46% to Rs.822. 2 constituting 43. 24.41% to Rs. 41. 81. This has helped the Bank particularly in the acquisition of low cost retail deposits.61 crores.722.78 crores. 50.56% from Rs. Retail loans grew 18. 939. 3. Return on Equity (ROE) has improved to 19. 8. 284.73 crores from Rs.83% to Rs. The Bank has also provided Rs.556.92 crores in the previous year. Basic earning per share has increased by 57.64 crores in the previous year. the total assets of the Bank's overseas branches stood at Rs. 105.026.17. Of the 827 branches. Demand 74 deposits (savings bank and current accounts) increased by 26. 16. while current account deposits grew by 23. retail assets. 2. As part of its strategy of building the organic growth engine. taking the total number of branches and ECs to 835 as on 31. 1 lac-crore mark and stood at Rs.81% to Rs.06% to Rs.69 crores in the previous year. 50.27 per share. 732.61 per share from Rs.35% in 2008-09.603.11 147 crores against Rs. There has been an all-round improvement on various financial parameters and ratios during the year.21 crores towards non-performing assets against Rs.764 to 3. As on 31st March 2009.14 crores in the previous year.675 crores. Savings bank account deposits grew by 29. while agricultural lending increased by 49. 32.595. 87. the operating profit of the Bank increased by 67.11 crores.70 crores.09.35 crores with investments in government and approved securities. Of this.31 per share in the previous year. 50.225.23% to Rs.330. 59. 27. while the provision for standard assets was Rs.22 crores. 153.09% in the previous year. During the year.In 2008-09. 176 new branches were added to the Bank's network (including 12 extension counters that have been upgraded to branches).577. 1. the geographical reach of the Bank now extends to 30 States and 4 Union Territories covering 515 centres. 11.14 in the previous year. up 60.661.50 from Rs. increasing by 37. 230 branches are in semi-urban and rural areas.22% to Rs.15 per share in the previous year.85 crores in the previous year. SME and mid-corporates as also the sale of third-party products.24 crores as a result of the increase in total deposits.36% to 0.727.90% of the Bank's total assets. Hong Kong and DIFC (Dubai International Finance Centre). advances to SMEs (including microfinance) increased by 39.217.12 crores. constituting 7. increased by 37.643.35% to Rs. The Bank continued to maintain the generally high quality of its assets and net NPAs. Diluted earnings per share (EPS) was Rs.374. the Bank continued to enlarge its geographical coverage of centres with potential for growth. 40.68 crores against Rs. With the opening of these offices. including district headquarters and other Tier II cities and towns across the country. total advances of the Bank grew by 36. During 200809. The opening of overseas offices provides opportunities to the Bank to finance cross-border trade and manufacturing activities in addition to the ability to source remittances and other businesses from the NRI community.3.2009 (against 671 branches and ECs in the previous year). 1.70% to Rs. The Bank's total investments increased by 37.05 crores from Rs.98% to Rs.50 crores against Rs. the Bank has created total provisions (excluding provisions for tax) of Rs. 322.24% in the previous year. a growth of 33. The Bank has also reported a robust growth of key balance sheet parameters for the year ended 31st March 2009. as the percentage of net customer assets declined from the previous year level of 0. 1. 18. total deposits overtook the Rs.724.10% to Rs.

No. In view of the overall performance of the Bank and the objective of rewarding shareholders with cash dividends while retaining capital to maintain a healthy capital adequacy ratio to support future growth. i.95.700 crores by way of subordinated bonds (unsecured redeemable non-convertible debentures) qualifying as Tier II capital.71 crores as on 31st March 2008. the shares of the Bank were part of the NIFTY Junior Index of the NSE. the shares of the Bank have been included and traded in the BSE Group 'A'. 10.76 11. 1. compared to Rs.17% last year.26%. The Bonds issued by the Bank under the MTN programme are listed on the Singapore Stock Exchange. 357.00 The Bank's shares are listed on the NSE. vii. The shareholding pattern of the Bank as of 31st March 2009 was as under: Sr. The listing fees relating to all stock exchanges for the current year have been paid. This increase reflects our confidence in the Bank's ability to consistently grow earnings over time.00 per share declared for 2007-08.449 equity shares were allotted to employees of the Bank pursuant to the exercise of options under its Employee Stock Option Plan. During the year under review. the Board of Directors has recommended a higher dividend of Rs. the Bank has raised capital of Rs. 6.96 25. The GDRs issued by the Bank are listed on the London Stock Exchange (LSE). as against 10. ii. The raising of this non-equity capital has helped the Bank continue its growth strategy and has strengthened its capital adequacy ratio. vi. During the year under review.27 from Rs.01 crores from Rs.31 last year. with effect from 27th March 2009. Of this Tier I Capital amounted to 9. The paid up capital of the Bank as on 31st March 2009 thereby rose to Rs. DIVIDEND The diluted Earning per Share (EPS) for 2008-09 has risen to Rs. Earlier. v.43%. The Bank is well capitalized with the capital adequacy ratio as at the end of the year at 13. 31. the Bank's shares have been included and traded as part of the main NIFTY Index of the NSE. the BSE and the Ahmedabad Stock Exchange. iii. Further.36 4. iv.00 per share on equity shares. 12. 359.08 10.12 7.26 13. while Tier II Capital was at 4. With effect from 26th March 2001. Name of Shareholders Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) Life Insurance Corporation of India General Insurance Corporation and four PSU Insurance Companies Overseas Investors including FIIs/ OCBs/ NRIs Foreign Direct Investment (GDR issue) Other Indian Financial Institutions/ Mutual Funds/ Banks Others Total % of Paid Up Capital 27. substantially above the benchmark requirement of 9% stipulated by Reserve Bank of India. Book Value 19 . 50.46 100.CAPITAL & RESERVES The business expansion plans of the Bank need to be backed by adequate capital.69%.

In line with the Accounting Standard 21 (AS 21) issued by the Institute of Chartered Accountants of India. Axis Trustee Services Limited. has been formed primarily to carry on the activities of managing equity investments and providing venture capital support to businesses. Axis Sales Limited. Any shareholder who may be interested in obtaining a copy of these details may write to the Company Secretary at the Registered Office of the Bank. SUBSIDIARIES The Bank has set up five wholly-owned subsidiaries. the maximum period allowed under the Banking Regulation Act. 20 . optimize operational efficiency and productivity and thereby reduce costs. Shri M. In the case of two subsidiaries viz. Subbiah and Shri Ramesh Ramanathan retire by rotation at the Fifteenth Annual General Meeting and. copies of the Directors' Report. Independent Director.BOARD OF DIRECTORS During the year. The objective of Axis Trustee Services Limited is to carry on trusteeship activities such as debenture trustee. 1956 and the Articles of Association of the Bank. During the year. Another subsidiary. Axis Private Equity Limited. the Bank has set-up three more subsidiaries viz. who served on the Board for eight years. Government of India through its letter no. report of the auditors of the three subsidiaries (Axis Sales Limited. ended on 27th April 2008. In terms of an exemption received from the Ministry of Corporate Affairs. Axis Mutual Fund Trustee Limited has been formed to act as the trustee for the mutual fund business. being eligible. Axis Asset Management Company Limited and Axis Mutual Fund Trustee Limited. The second subsidiary of the Bank. Axis Private Equity Limited. Axis Asset Management Company Limited has been formed primarily to carry on the activities of managing a mutual fund business. Axis Private Equity Limited and Axis Trustee Services Limited) along with financial statements have not been attached to the accounts of the Bank for the financial year ended 31st March 2009. 47/126/2009-CLIII dated 27th March 2009 under Section 212(8) of the Companies Act 1956. V. some changes in the Board of Directors have taken place. The Board of Directors places on record its appreciation and gratitude to Shri Surendra Singh for the valuable services rendered by him during his tenure as Director of the Bank. Axis Asset Management Company Limited and Axis Mutual Fund Trustee Limited. In accordance with the provisions of the Companies Act. Axis Trustee Services Limited. Axis Asset Management Company Limited and Axis Mutual Fund Trustee Limited. The objective of this subsidiary is to build a specialised force of sales personnel. These documents will also be available for examination by shareholders of the Bank at its Registered Office and also at the registered offices of the three subsidiaries. the consolidated financial results of the Bank along with its subsidiaries for the year ended 31st March 2009 are enclosed as an Annexure to this report. The sales subsidiary also seeks to provide greater control and monitoring of the sales effort vis-à-vis the Direct Sales Agent model. Axis Sales Limited has been set up for marketing credit cards and retail asset products. the first audited financial results will be prepared as on 31st March 2010. The term of office of Shri Surendra Singh. offer themselves for reappointment as Directors of the Bank. trustee to various securitization trusts and other trusteeship business.

relating to material departures. The annual accounts have been prepared on a going concern basis.70. June 2004. iv.45. including whole-time Directors.74. 67. 30% and 40% on each of three successive anniversaries following the granting. for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities.52. to participate in the future growth and financial success of the Bank.860 during 2006-07. and applied consistently and reasonably. iii.830 during 2004-05.450 during 2003-04. subject to standard vesting conditions.29. 27. CORPORATE GOVERNANCE The Bank is committed to achieving a high standard of corporate governance and it aspires to benchmark itself with international best practices. the option conversion price was set at the average daily high-low price of the Bank's equity shares traded during the 52 weeks preceding the date of grant at the Stock Exchange which has had the maximum trading volume of the Bank's equity shares during that period (presently the NSE). 57. Under the Scheme 3.355 during 2008-09. 1999. 2000. and prudent judgements and estimates have been made so as to give a true and fair view of the state of affairs of the Bank and of the Profit & Loss of the Bank for the financial year ended 31st March 2009. The options granted. 38.38.08. 46. vest at the rate of 30%.000 options can be granted to employees. Under the first two plans and upto the grant made on 29th April 2004.700 during 2001-02. Other statutory disclosures as required by the revised SEBI guidelines on ESOPs are given in the Annexure to this report.340 during 2007-08 and 26. The Bank's shareholders approved plans in February 2001. in accordance with the provisions of the Companies (Amendment) Act.22.09.95.79.77. and must be exercised within three years of the date of vesting.240 during 2005-06. the pricing formula has been changed to the closing price on the day previous to the grant date. As of 31st March 2009. 17. The employee stock option scheme is in accordance with the Securities and Exchange Board of India (Employee Stock Option and Employee Stock Purchase Scheme) Guidelines. Proper and sufficient care has been taken for the maintenance of adequate accounting records. Under the third plan and with effect from the grant made by the Company on 10th June 2005.18. The applicable accounting standards have been followed in the preparation of the annual accounts and proper explanations have been furnished. which are non-transferable.974 options were in force. Accounting policies have been selected. June 2006 and June 2008 for the issuance of stock options to employees. DIRECTORS' RESPONSIBILITY STATEMENT The Board of Directors hereby declares and confirms that: i.EMPLOYEE STOCK OPTION PLAN (ESOP) The Bank has instituted an Employee Stock Option Scheme to enable its employees. 1.57. 11. ii.925 during 2000-01. 21 . The Remuneration and Nomination Committee granted options under these plans on eight occasions. The corporate governance practices followed by the Bank are enclosed as an Annexure to this report.885 options had been exercised and 1. The eligibility and number of options to be granted to an employee is determined on the basis of the employee's work performance and is approved by the Board of Directors.

Chartered Accountants as Statutory Auditors for the financial year 2009-10. excellent performance. The Bank has. 2009 P. professionalism. The statement containing particulars of employees as required under Section 217(2A) of the Companies Act. however. The Board acknowledges the support of the shareholders and also places on record its sincere thanks to its valued clients and customers for their continued patronage. Batliboi & Co. retire on the conclusion of the Fifteenth Annual General Meeting and are eligible for re-appointment.. team work. 1956 and the rules made thereunder. Chartered Accountants.STATUTORY DISCLOSURE Considering the nature of activities of the Bank. As recommended by the Audit Committee. The Board also expresses its deep sense of appreciation to all employees of the Bank for their strong work ethic. Nayak Chairman & Chief Executive Officer 22 . In terms of Section 219(1) (iv) of the Act. the Board has proposed the appointment of M/s S. and of the shareholders. the Report and Accounts are being sent to the shareholders excluding the aforesaid Annexure. used information technology extensively in its operations. 1956 relating to conservation of energy and technology absorption do not apply to the Bank. is given in an Annexure appended hereto and forms part of this report.. financial institutions and correspondent banks for their strong support and guidance. J. Statutory Auditors of the Bank since 2006. Any shareholder interested in obtaining a copy of the Annexure may write to the Company Secretary at the Registered Office of the Bank. R. Batliboi & Co. ACKNOWLEDGEMENTS The Board of Directors places on record its gratitude to the Reserve Bank of India. commitment and initiative which has led to the Bank making commendable progress in today's challenging environment. other government and regulatory authorities. AUDITORS M/s S. For and on behalf of the Board of Directors Place : Mumbai Date : April 20.R. The shareholders are requested to consider their appointment. subject to the approval of Reserve Bank of India. the provisions of Section 217(1)(e) of the Companies Act.

118.069.729.689 1.860 6.708.940 866. 232.) Options Granted Options Vested Options Exercised & Shares Allotted* Options lapsed/ cancelled Total Options in Force As on 31 March 2009 Money realised by exercise of options (Rs.240 4. during any one year.572 35.410 3.969 1.54 3.228.663 1.779.064.768 189.89 6.088 1.945 13. For options granted on and after 10 June 2005.93 1.293.148 724. The average daily high-low price of the shares of the Bank traded during the 52 weeks preceding the date of grant at that stock exchange which has had the maximum trading volume of the Bank's share during that period.956 110.194.340 2.10 Rs.079 2.68 Rs.00 Rs.811 2.91 3.63 Rs.142 5.000 options None None • None 23 .31 976.25 24 Feb.273 514.677.62 Rs. 39.668.40 1.865 303.677 557.885 81. Variation in terms of ESOP Details of options granted: • • Employee wise details of grants to Senior managerial personnel Employees who were granted. 824. 2002 6 May 2003 29 April 2004 10 June 2005 17 April 2006 17 April 2007 21 April 2008 Total Rs.09 15.77 Rs. options amounting to 5% or more of the options granted during the year Identified employees who were granted options.036.385.450 3.809.663 3.58 495.616.612. in lacs) 400.228.105.835 2.700 2. 97.456.695. 468.642.925 1.ANNEXURE STATUTORY DISCLOSURES REGARDING ESOP (FORMING PART OF THE DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2009) ESOS 2000-01 (Grant Date) Exercise Price (Rs. 319.540.079 2.974 * One (1) share would arise on exercise of one (1) stock option Other details are as under: Pricing Formula Fixed Price i. 29.245.031.411.768 189.641.709. 2001 28 Feb.570 295.766.90 Rs.377 2. during any one year.700 14. the exercise price considered is the closing market price as on the day preceding the date of the grant at that stock exchange which has had the maximum trading volume of the Bank's share. equal or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Bank under the grant Chairman and CEO-389.355 29.409 3.774.069.900 1.841 14.830 5.514 375 5. 38.391 12.e.852.

50.30 crores Significant Assumptions used to estimate fair value: • • • • • Risk free interest rate Expected life Expected Volatility Dividend Yield Price of the underlying share in the market at the time of option grant 7.88 per share Rs. 310.96% to 8. 47. if the employee compensation cost had been computed at fair value Rs. 824.63% 1.26.06 crores Rs.22% Rs. 824. 1. if the employee compensation cost had been computed at fair value Diluted EPS.65% to 48.01% 2 to 4 years 45.27 per share Weighted average exercise price of Options whose: • • • Exercise price equals market price Exercise price is greater than market price Exercise price is less than market price Weighted average exercise price of the stock options granted during the year is Rs. 86. Nil Nil Fair Value Related Disclosure: • Increase in the employee compensation cost computed at fair value over the cost computed using intrinsic cost method • • • Net Profit.Diluted Earnings Per Share pursuant to issue of shares on exercise of options calculated in accordance with Accounting Standard (AS) 20 'Earnings Per Share' Rs. 48. if the employee compensation cost had been computed at fair value Basic EPS.729.40 24 .40. Nil Nil Weighted average fair value of Options whose: • • • Exercise price equals market price Exercise price is greater than market price Exercise price is less than market price Weighted average fair value of the stock options granted during the year is Rs.20 per share Rs.

551 Nil 3.00. 10.50.00 each fully paid up 100% 32.STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT. Vaish Director Date: 20 April 2009 Place: Mumbai 25 . C. B.000 shares of Rs. Axis Sales Limited 31-3-2009 3. for the financial year ended 31 March 2009 (Rs. in thousands) (56. J. No. for the financial year ended 31 March 2009 (Rs. and is not dealt with in the accounts of Axis Bank Ltd. Patil Director R.000 shares of Rs. Name of the Subsidiary Company Financial year end of the subsidiary Extent of Number of interest equity shares held by Axis Bank of Axis Bank in the capital and/or its of the nominees in subsidiary subsidiary as on 31 March 2009 Net aggregate amount of profits/(losses) of the subsidiary so far as it concerns the members of Axis Bank Ltd.00. in thousands) 1. Nayak Chairman & CEO P. Singhal Director R. J.282) Net aggregate amount of profits/(losses) of the subsidiary so far as it concerns the members of Axis Bank Ltd.10. H.00 each fully paid up 15. L. and is dealt with or provided for in the accounts of Axis Bank Ltd. Axis Trustee Services Limited 31-3-2009 100% 3.00.00. Axis Private Equity Limited 31-3-2009 1. 10. 1956 RELATING TO SUBSIDIARY COMPANIES Sr. P.00 each fully paid up 100% Nil 2. Oza Company Secretary Somnath Sengupta President Finance & Accounts N.000 shares of Rs.830 Nil For Axis Bank Ltd.

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the estimates of GDP growth have been lowered to between 6. In the short term. The RBI has reduced its policy rates (LAF Repo rates) by 400 basis points since September 2008 and injected significant liquidity into the markets. Accordingly. In India. particularly as many export segments are also employment intensive. Globally.50% of the previous four years. The loss of export markets has consequently hit domestic demand quite hard. despite the significant stimulus packages offered by both governments and central banks. The cash squeeze has led to concerns about potential defaults on bank loans. Unlike developed economies. due to the higher weightage for food and housing costs in the consumption basket. turning into a full-blown global economic crisis. The residual effects on job losses and credit delinquencies. lower than the average growth rate of 8. primarily due to the enlargement in the Government's borrowing programme. however. The Fiscal Stimulus in India Both the government and the RBI have taken fiscal and monetary policy measures to address this slowdown. The central and state governments are spending an additional 3% to 4% of GDP on various stimulus measures. OUTLOOK FOR 2009-10 While the economic condition of major developed economies is unlikely to improve in 2009. 29 . India has become increasingly integrated with the global economy. tax cuts and spending programmes. further deterioration is not expected and the general view is that the worst is over. and (c) Slowdown in investment plans of many corporates in anticipation of a demand slowdown.MANAGEMENT'S DISCUSSION AND ANALYSIS MACRO-ECONOMIC ENVIRONMENT The performance of the Bank in 2008-09 should be viewed in the backdrop of the global financial crisis that had its beginnings in the US sub-prime sector and broader financial markets but spread throughout the world.00% in fiscal 2009. adding weak consumption demand to slowing investments. both through trade and through exposure to financial markets. The Wholesale Price Index (WPI) inflation dropped to close to 0% by the end of FY 2009. However. the cost of living represented by the Consumer Price Index (CPI) is likely to continue to remain much higher. Over the last few years. and an increase in the costs of foreign currency funds. the slowdown in India has not been led by the financial sector but affected by mainly the following: (a) The sharp slowdown in global import demand resulted in an export slowdown. the key benchmark rate of the 10-year Government securities did not fall correspondingly. In addition. The demand slowdown has led to inventory buildups. there are other spending programmes (such as the Sixth Pay Commission payouts) that are also likely to have a positive effect on demand expansion. The consequent risk-aversion and tightening of credit standards in bank lending has also reduced consumer durables financing. the slowdown in fiscal 2009 was deeper than anticipated. This fiscal push has been complemented by a fairly active monetary policy.50% and 7. prices are likely to remain subdued due to weak consumption and investment demand. will keep demand conditions weak. and earlier fears of high inflation have changed to deflation and apprehensions of rapid and sustained deceleration of growth. Although the Indian economy has done relatively better in 2008-09 compared to other countries in the emerging markets peer group. however. (b) A contraction in the availability of global finance. particularly export finance. constricted cash flows and cutbacks in corporate capex plans.

the demand for bank credit should pick up in course of time. which will increase the purchasing power of public sector employees. The underlying performance of the business remains strong with revenue growth remaining well ahead of cost growth. should also boost demand. However. however. to gradually decline over 2009-10 resulting in increased capital flows to sectors with growth opportunities. slow down in credit-offtake. the cost of funds for banks (and hence for corporates) is expected to decline through the year. The combination of a burdened fiscal deficit. the financial sector remains sound and will. which are still fairly high.export-driven activity is likely to remain depressed and capital expenditure is likely to remain muted. OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCE In a year in which the banking system in India was subjected to severe stress due to strained liquidity conditions. inflationary pressures are expected to build up gradually given the infusion of liquidity and the higher support prices for many food and commercial crops that will keep prices of primary products firm. On the whole. and we have continued to extend our reach as well as deepen existing customer relationships. The Bank's strategy to build its business upon strong customer franchises has continued to deliver impressive results. rising delinquencies and a high incidence of assets being restructured. The stimulus package of the government and the implementation of the Sixth Pay Commission. However. The potential inflationary pressure is likely to dissuade RBI from aggressively reducing short-term policy rates. particularly in the initial months of the current fiscal year. 30 . abnormally high cost of bulk deposits. somewhat easy monetary policy and comfortable liquidity is expected to pull down the short-term yield curve. in our view. Interest rates at medium and longer maturities could remain relatively high. we do expect a moderate cut in RBI policy rates. Despite a difficult funding and credit environment. A good Rabi harvest and monsoon will also drive growth in agro-related industries and ancillary services. While concerns about credit quality have impeded a larger increase in credit flows. Increased sales in certain sectors like cement and steel. demand for non-food credit remaining weak. Despite the weak demand conditions. and price discounts resulting in higher sales in certain consumer durables segments are already visible. the extension of credit by banks in India has been reasonably satisfactory and accelerating its delivery will be a key factor in sustaining the positive effects of the fiscal and monetary stimulus measures. the Bank has delivered a strong performance. We expect the general risk perception levels. bank credit will play a large role as other avenues for raising funds are likely to remain tight. the Bank is focused on developing an asset structure sensitive to the importance of increasing the proportion of low risk weighted assets. Given the fact that cost of funds for banks is steadily diminishing and will translate into lower lending rates. and increased government expenditure commitments may not be matched by buoyancy in tax revenues. be able to absorb the anticipated increase in non-performing assets without deleterious capital erosion. Towards that end. In particular. CAPITAL MANAGEMENT The Bank strives for the continual enhancement of shareholder value through efficient use of available capital in a manner that leads to a high return on equity. foreign currency funds are expected to still remain relatively scarce. The fiscal situation is expected to remain weak.

90 2008 Basel I 8.69% against the minimum regulatory requirement of 9%.56% 15. The following chart demonstrates the strategic roadmap that the Bank has drawn up over the years in tune with changing market dynamics.905.110.98 4. risk-weighted assets and capital adequacy ratios computed as on 31st March 2008 and 2009 in accordance with the applicable RBI guidelines under Basel I and Basel II.027.09.08 1.66 13.01 13.175.Shareholders' Funds Tier II Capital Out of which .41%.17% 3.66 Basel II 8. the Bank's Capital Adequacy Ratio under Basel II was 13.80 1. On a daily average basis.49 13.864. 25.69% 15.80 1.38 361.822.64 1.90 1.Upper Tier II capital .822 crores on 31st March 2009 from Rs. As on 31st March 2009.75 BUSINESS OVERVIEW The performance of individual business segments during 2008-09 and their future strategies are presented below: RETAIL BANKING The Bank has pursued an effective strategy over the years to develop the retail liabilities business. the Bank raised capital aggregating Rs. the success of which is reflected in the fact that savings bank deposits have grown at a Compounded Annual Growth Rate (CAGR) of 64% between the years 2000 and 2009. During the year.08 1.41% 4. In terms of regulatory guidelines on Basel II.43% 9.50% 10.864.90 1.52 3.370.Bonds qualifying as Tier II capital .08 3.719.65 13.69% was well above the minimum regulatory requirement of 9%.148.572.890. In terms of RBI guidelines for implementation of Basel II.91% 11. in crores) AS ON 31 MARCH Basel II Tier I Capital . (Rs.38 342.60% 10.During the year.42 4. The following table sets forth the risk-based capital.99 3.054.982 crores on 31st March 2008 registering a year-on-year growth of 29%.054.082.Tier II Capital 9. the Bank has computed capital charge for operational risk under the Basic Indicator Approach and the capital charge for credit risk has been computed under the Standardized Approach. savings bank deposits during the year grew by 42.370.47 10.572.39% 3. with a perceptible increase in trading volumes.700 crores of Tier II Capital in the form of subordinated bonds (unsecured redeemable non-convertible debentures) to augment its overall capital base and maintain the momentum of business growth.Tier I Capital . 1.73% 3. the Bank continued to attract investor interest from domestic and foreign institutional investors.26% 4.27 86. 19.Other eligible for Tier II capital Total Capital qualifying for computation of Capital Adequacy Ratio Total Risk-Weighted Assets and Contingencies Total Capital Adequacy Ratio (CAR) Out of above .063.162.62 1. regularly building in initiatives that 31 .148. The Bank has implemented the Revised Framework of the International Convergence of Capital Measurement and Capital Standards (or Basel II) last year.787.78 439.08.66 2009 Basel I 10. capital charge for credit and market risk for the financial year ended 31st March 2009 is required to be maintained at the higher of the prudential floor prescribed by Basel II and 90% of the level under Basel I.89 84.99% 11.78 439.826.040. the Bank's Capital Adequacy Ratio at 13.990. Savings bank deposits grew to Rs. As on 31st March 2009.

The Bank's emphasis on customer segmentation. a ratio that is higher than that of its peers. covers both the Bank's own products as well as third-party products. ATM. mobile banking and phone banking have grown well and a solid architecture of alternate channels has been created.595 ATMs on 31st March 2009.39 lacs on 31st March 2009. With 20. Home Banking. Some of these strategic initiatives have been the setting up a large and widespread network of ATMs. The Bank's ATM network has grown rapidly over the years and during the financial year 2008-09 the Bank has added 831 ATMs Savings Deposits Growth Rs. showing a growth of 30% over last year. a growth of 40%.887 new accounts. In 2008-09. as the following table indicates. The Bank has a Phone Banking Centre providing account information and assistance in 11 languages. Alongside the vast ATM network.35 ATMs for every Branch. Relationship Managers. Internet. in crores CAGR (2000-2009): 64% Cross-sell Segmentation & Relationship Mgrs Sales Core Banking Team (CBS)/ATMs to reach 3. The new accounts acquisition has brought in underlying balances of Rs. the sales team has grown to become a powerful customer-acquisition unit. is underscored by the value proposition offered to different customer segments by means of customized products. an increase of 20% over the previous year. 2. providing higher levels of convenience and service quality to customers. 32 . the Bank acquired 23. The Bank has also built a sizeable sales force of over 3.the registered user base rose from 51.16. 7.50. During 2008-09. With a structured training programme. the Bank has one of the highest mobile penetration levels among bank customers in India. an effective deepening tool for savings deposits. 7.65 lacs on 31st March 2008 to 72. adoption of a customer-centric segmentation and the implementation of an enterprise-wide strong cross-sell initiative.800 personnel on its own payroll.529 crores in the previous year.Priority Branches & Lounges. Life Style Privileges More than 2 lacs customers with an average balance over Rs. 31% of new customers signed on for mobile banking services.873 crores this year against Rs. an attractive incentive structure and a well-defined 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 career path.9 lacs customers registered for mobile banking. other channels such as internet banking. Call centre - Wider Retail Base High scope for up sell The cross-sell initiative.have enabled the Bank to stay ahead of competition and to avoid the law of diminishing returns. The mobile banking channel has emerged as a convenient option for the Bank's customers in keeping themselves updated on the transactions in their accounts. Internet banking usage also rose sharply .000 High scope for cross sell Value to Bank VALUE FOR MONEY Mass Payroll / Salary Easy Access Convenience of access through Multiple Channels like Branch. Customer Segment Products Value to Customer PREMIUM HNI Priority Banking Exclusivity . The Bank today has 4. the creation of a differentiated sales model.

449 crores on 31st March 2008 to Rs. a growth of 18%. During the year under review. The retail assets portfolio of the Bank grew 118. the Bank now offers as many as 13 variants. 11. The segment constitutes 19. 16. The Bank further consolidated its position in the cards business in the country during the year. offering a wide array of payment solutions to its customers by way of debit cards.2 from Rs. credit cards. However the health of the mortgage and automobile portfolios continued to be satisfactory.052 crores on 31st March 2009.Retail term deposits of the Bank grew by 46% from Rs.679 crores on 31st March 2009. The total debit card base of the Bank as on 31st March 2009 stood at 118 lacs. From the initial one-size-fits-all debit card product. prepaid cards. the Bank has also started the process of consolidating the collection and recovery processes under its subsidiary. there was pressure on the unsecured loan book. 13. to further improve customer service. the cards acceptance service and the internet payment gateway. 16. Mortgages March 2005 March 2006 March 2007 March 2008 March 2009 27% 41% 54% 57% 65% Auto Loans 59% 39% 27% 16% 14% Personal loans 4% 12% 11% 16% 12% Distribution of Retail Assets by Product Class as on 31st March 2009 Personal Loans 12% Cards 4% Commercial Vehicles 3% Non-Schematic 5% 2-Whellers 0. customized for specific liability customer segments. Axis Sales Ltd. 33 . As can be seen from the table below. vindicating the Bank's strategy of focusing on prime customer segments and deploying robust. mainly personal loans and credit cards..03% Passenger Cars 11% Auto Loans Auto Loans 14% Housing Loans 65% Retail loans are primarily extended by the Bank through 64 Retail Asset Centres (RACs) in select cities of the country.592 crores on 31st March 2008 to Rs. centrally-driven collection processes. the Bank has increased its base of secured loans on the mortgage segment front. With the economy slowing down.68% of the Bank's total loan portfolio on 31st March 2009 of which 83% is secured and 17% comprises unsecured loans.

this service offering is for clients who entrust the Bank with Assets under Management (AUM) of more than the equivalent of USD 100. It is the first Bank in India to offer the Platinum Visa EMV Chip card. In association with Geojit Financial Services. Axis Bank Wealth is expected to make a substantial contribution to the fee income and profitability of the Bank in coming years. limiting credit card issuance to customers with existing relationships with the Bank and strengthening the collection infrastructure.95 lac customers have subscribed to this account. the e-commerce business has contributed Rs.700 crores in 2008-09.000 credit cards since its launch in 2006 and today offers an entire range of retail and commercial cards. The EDC business has also contributed over 73. The Bank also has two very successful partnerships in the bancassurance sector with Bajaj Allianz General Insurance Co for general insurance products. While the slowdown in the economy has also adversely impacted the credit card portfolio. the Bank offers Demat accounts to its customers. The Bank supports PSTN. and in 5 years has emerged as the second largest acquirer in the country. over 26. over 1. Available at more than 600 branches across the country. Of these.15 lac terminals. and with MetLife India Insurance Co for life insurance products. the Bank has emerged as the leading distributor of mutual funds in India. Axis Bank Wealth provides an end-to-end value proposition that caters to the need for normal banking facilities. In personal investment products. The Bank offers merchant acquiring services at more than 250 cities and across 147 unique merchant categories. the Bank has taken corrective measures by rebalancing its portfolio. the Annuity Card (launched in collaboration with Life Insurance Corporation of India for annuity payments) and the Remittance Card (for facilitating remittances in India). 13. The Bank is a leader in the prepaid cards segment with products like the Rewards Card (an electronic card for low-value cash disbursements). the Bank offers online trading services . a product team and support staff. The Bank has successfully launched an RFM (Recency. backed by a research team. To ease the process of investing in stock markets. 500 crores of premium generated.The Bank has retained the market leadership position in the Travel Card Segment for three consecutive years and has generated a sales volume of about USD 352. Titled 'Axis Bank Wealth'. This has been possible due to the strong focus on products along with easy payment and renewal facilities. Frequency and Monetary Value) based Loyalty Programme and Dynamic Currency Conversion with its large customer base. Despite the slowdown.89 million in this financial year ended 31st March 2009.000 current accounts with a total balance of nearly Rs. While the general insurance industry was hit by detariffing in certain insurance products. Currently offered through 20 cities across India. 100 crores in the financial year.000 customers are using these facilities. GPRS and IPbased connectivity. the Gift Card (a prepaid card ideal for all gifting requirements). an 'end-to-end' advisory value proposition for ultra high-net worth clients through the Bank's overseas branches who entrust the Bank with Assets under Management (AUM) 34 . the Meal Card (a prepaid re-loadable card for disbursement of tax-free meal allowances). with an installed base of about 1. the life insurance partnership was one of the best bancassurance partnerships in the industry with over Rs. In 2008-09. EMI facility and Bill Pay. 817 crores on 31st March 2009. the partnership generated a premium of over Rs. The Bank has issued more than 5.a fast and user-friendly platform.000. The first quarter of the new financial year 2009-10 will see the launch of Axis Bank Priveé.33. the Bank has added a large number of customers this year. an investment and consulting team. The Gold Coins product of the Bank has also proved to be an important addition to the Bank's product range. investments and retail asset solutions. Presently. Through a dedicated Wealth Manager. The Bank has acquired more than 6 crore card transactions amounting to almost Rs. The Bank has launched its new investment advisory service exclusively for High Net Worth clients in December 2008. Credit card customers of the Bank are offered a variety of value-added services such as balance transfers. The Bank launched its merchant acquiring business in December 2003. CDMA. 745 crores. The focus on investments through the Systematic Investment Plan (SIP) route has enabled the Bank to register over 1 lac new Systematic Investment Plans in 2008-09.

Portfolio diversification remains the key for managing asset quality and preventing concentration risks. asset management and family office business in Europe with an experience of more than two and a half centuries. Axis Bank Priveé will be offered in association with LCF Rothschild Group. while maintaining a close vigil on asset quality. as also trade finance. the highest exposure to any individual sector was 11. As on 31st March 2009. including investment banking and retail products. 35 . business needs and family office services needs.166 crores (equivalent to USD 2. While the entire corporate lending portfolio was internally rated with 79. the Bank's clients are offered the entire bouquet of corporate banking products. structured finance.026 crores in the previous year. The Bank has in place procedures and practices to ensure regular updation of risks taken by the Bank on various client accounts.679 crores.86%. As the Bank's overseas branches are in Asia. The economic downturn has had an adverse impact on several Mid-Corporates. a leading player in private banking. besides having created a strong fee-based earning stream. has now emerged as an important business segment for the Bank. While the selection criteria are stringent and strongly underpinned by a rigorous risk assessment process. 29.69% of the Bank's total exposure. however. CORPORATE BANKING Corporate banking business provides a variety of products and services to large and mid-size corporates that include credit. In keeping with the Bank's strategy to diversify risks. Gems and Jewellery. business banking and capital markets. Relationship groups in the Bank are organized with an industry-sector focus for better evaluation of specified risks. covering their personal needs. The Mid-Corporate Group. This includes advances to Mid-Corporate of Rs. The credit policy of the Bank has also put in place ceilings on exposures to various industries with a view to containing concentration risk and facilitating portfolio diversification.of more than USD 1 million. large and mid-corporate advances grew by 41. the Mid-Corporate credit portfolio stood at Rs. created as a result of reorganization of the Corporate Credit group last year. project finance and syndication services through separate SBUs such as large and mid-corporate credit. 9. this will enhance the Bank's profile within the wider Asian continent.211 crores from Rs. helped it maintain a high level of asset quality. The Bank continues to pursue a two-pronged strategy of widening the customer base as well as deepening existing client relationships. trade finance for domestic as well as international transactions. This includes advances at overseas branches amounting to Rs. and this has particularly affected sectors like Textiles. Corporate banking has continuously increased its focus on risk management and on improving portfolio quality. The Mid-Corporate Group has a healthy yield on advances at 11. Going forward. 698 crores through the Bank's overseas branches. thus ensuring a better value proposition for the Bank's clients. 10. which resulted in significant growth in core fee income. treasury. 41. The Group's facilitating approach has. 73. which demonstrate the ability to grow into large sized businesses. Efforts were made through the year to offer integrated corporate banking solutions to the Bank's clientele. and Auto Ancillaries. A careful choice of new relationships based on appropriate risk-return guidelines forms the basis for the strategy of widening the customer base. A deepening of existing client relationships is achieved by a careful account strategy focusing on increasing the cross-sell of various corporate banking products as also products from other businesses of the Bank.98% to Rs. CORPORATE CREDIT During the year.12% of the large corporate loans has been externally rated.0 billion) comprising mainly the portfolio of Indian corporates and their subsidiaries. the Bank will continue to source corporate relationships.21% of large corporate assets being rated A and above.

efforts were directed at risk containment of the portfolio due to the rise of illiquidity in the markets. 20. supplemented the efforts for efficiently targeting balances from these segments. 11. institutions. Cross-selling of transactional banking products to develop account relationships. as well as small and retail business customers. Currency Futures were introduced in India in August 2008. 36 . Hong Kong and DIFC assist customers in managing their interest rate and foreign currency exposures. There was a greater focus on acquisition of high-value current accounts by satisfying the needs of these value-based customers. In spite of the volatility observed in the bond markets. simultaneously maintaining proprietary positions to generate trading income for the Bank. The Bank started trading on the very first day of the introduction of Currency Futures. acquiring new clients and providing value-added services to clients. aided by product innovation and a customer-centric approach. as against Rs. the Bank's thrust was on maximizing profits and the portfolio yield. aiming specifically at generating upfront fee income.658 crores on 31st March 2009. As of 31st March 2009.045 crores on 31st March 2008. On a daily average basis. Singapore. resulting in a surge in client registration and usage. the Bank introduced improved offerings under mobile banking and internet banking. apart from enlarging the customer base. Proprietary trading in foreign exchange was also very profitable. The dealing rooms in Mumbai. central and state government ministries and undertakings. the launch of new and innovative products focusing on specific segments like inland road transport. a growth of 24%. 24. The Bank sustained the growth in customerdriven forex business by strengthening existing relationships.822 crores. A major part of the year was marred by the turmoil in the global financial markets and the management of liquidity assumed top priority. have borne fruit in the form of growing current account balances and increasing realisation of transaction banking fees. BUSINESS BANKING The Business Banking initiatives have consistently focused on procuring low cost funds by offering a range of current account products and cash management solutions across all business segments covering corporates. The Bank continued its emphasis on developing the customer business in foreign exchange. Additionally.TREASURY The Bank has an integrated Treasury. The Bank's investments in government securities were dynamically managed around duration. Balance sheet management acquired greater importance with stressed liquidity conditions during the year. which saw a rise in turnover of over 85%. and the portfolio yielded a return of 7.834 crores on 31st March 2008 to Rs. During the year. which eased during the last quarter of the financial year as a consequence of several monetary easing steps taken by Reserve Bank of India.42%. the Bank also introduced a new zero balance current account product for traders with local business requirements. 14. The sourcing of current accounts is a critical enabler for the growth of the balance sheet. Incrementally. current account balances for the Bank stood at Rs. With the objective of providing various alternative platforms to business clients for satisfying their transactional banking needs. which covers both domestic and global markets and funds the balance sheet across locations. current accounts grew from a level of Rs. thus maintaining the pace of growth in current account balances.

During the year. the Bank accepts income and other direct taxes through its 214 authorised branches at 137 locations and central excise and service taxes through its 56 authorised branches at 13 locations. The Bank's Capital Markets Business also involves providing corporate restructuring advisory services.000 crores by private placement of bonds. During the year. The Bank also handles the disbursement of civil pension through 218 authorised branches. business plan preparation and bid process management. Prime Database has ranked the Bank as the number 1 arranger for private placement of bonds and debentures till 31st December 2008. The Bank has continued to retain its leadership position in the domestic debt market and during 2008-09 has syndicated an aggregate amount of about Rs. The Bank is a SEBI-registered Category I Merchant Banker with experience in the management of public and rights issues. which further added to the fee income. The Bank was also able to leverage its network and technology for handling sale of prospectus/brochures as well as fee collection on behalf of various educational institutes. The equity capital markets activities involve providing advisory and placement services pertaining to the raising of equity and quasiequity funds by its corporate clients. infrastructure and project advisory services. towards handling disbursements relating to various government benefit schemes through smart cards under an IT enabled financial inclusion model in two districts (Krishna and Rangareddy) in Andhra Pradesh. the Bank has introduced remittance facilities such as NEFT/RTGS through internet banking for corporates. A strong network. interest. We have acted as an agency bank for transacting government business for the last 8 years offering banking services to various central government ministries and departments and other state governments and union territories. The Bank has further strengthened its association with the e-Governance initiatives of various State Governments in India aimed at providing better citizen services by setting up integrated citizen facilitation centres. the Bank provides collection and payment services to four central government ministries and departments and seven state governments and union territories. 69. the Bank launched the Application Supported by Blocked Amount (ASBA) facility towards application in public issues. 37 . technology-based solutions and secure processes have helped the Bank in handling bulk payment mandates such as for dividends. The Bank offers CMS solutions for collections and payments with an ideal blend of structured MIS and funds movement. The Bank has successfully implemented the Electronic Benefit Transfer (EBT) Project. The Bank provides debt capital market services by acting as advisors and arrangers for raising Rupee and foreign currency loans.869 crores against Rs. and defence pension through 151 authorised branches. foreign currency convertible bonds and Rupee-denominated bonds. Currently. The Bank has been rated as the Best Bond House in India for the financial year 2008 by Finance Asia. mergers and acquisitions (M&A) advisory services. The Bank's Web CMS initiative also allows them to view their daily transactions on a real time basis. arranging services for acquisition funding. techno-economic feasibility reports. The Bank has carved out the trusteeship business. and India Bond House 2008 in the IFR Asia Awards 2008. 53. The CMS foray is not only emerging as an important source of fee income but is also contributing significantly towards mobilizing zero cost funds and forging large relationships. The strong correspondent bank alliances offer corporate clients a wide geographical coverage. Additionally. The total government business throughput during the year was Rs. which constitutes a new line of business contributing to fee as well as float income.585 crores reported in the previous year. redemption and refunds. debentures and term loans. Additionally.India in the 2008 Euromoney Awards for excellence. so that clients are able to enhance their fund management capabilities.The Cash Management Services (CMS) initiatives leveraged the Bank's growing branch network and robust technology to provide a wide range of customized solutions to suit the dynamic requirements of its clients. 60. Bloomberg has also ranked the Bank as number 1 in India Domestic Bonds League table for the calendar year 2008. the Bank was associated with the 'e-Governance Project' and 'e-Procurement Project' of Government of Bihar as the Nodal Bank. CAPITAL MARKETS The Bank's Capital Markets business encompasses activities both in the equity capital markets and the debt capital markets. Best Domestic Debt House in India for 2008 by Asia Money and Best Debt House .

AGRICULTURE AND MICRO FINANCE The Micro. and the Bank offers its retail agri products to farmers through 249 of its branches. opportunities will be available in the private placement of equity. At Agri Business Centres. The corporate agriculture team consists of client-specific relationship managers and a team of credit analysts having sectoral expertise. SMALL AND MEDIUM ENTERPRISES. During the year. The Bank also maintains an investment and proprietary trading portfolio in corporate bonds and equities.hitherto a part of capital markets business into a separate subsidiary company to enhance its functioning.789 clients. LENDING TO MICRO. The strategy was to finance the value chain and foster corporate partnerships. the Bank's investment in corporate bonds. 13.603 crores against Rs. During the year. As on 31st March 2009. Besides relying on the services of collateral managers. and to fully exploit the large business potential in this sector the Bank has set up 24 SME Centres across the country to extensively focus on the credit requirements of MSME clients. seven Agri Business Centres were created to exclusively focus on high potential geographies. market and credit risks and these teams are provided with a state-of-the-art software. Lending to the MSME Sector forms a major part of the Bank's credit portfolio to the non-farm sector and contributed 28. 18. The Bank will continue to focus on project and corporate finance by raising both debt and equity funds for various infrastructure and manufacturing projects.44% to the Bank's priority sector advances. employment generation. The Bank has also started providing custodial services. poverty alleviation and balanced regional development. corporate agriculture and commodity business (i. These customer specific segments are manned by separate officers and offer a wide range of products suitable for each segment. The retail agriculture organisational model consists of 46 strategically placed agriculture clusters.e. The sector has the second largest share of employment after agriculture.51% of the Bank's domestic loan book. Small and Medium Enterprises (MSME) Sector is the backbone of the Indian economy contributing significantly to economic growth. This constitutes an important area of lending for the Bank. M&A advisory and domestic bond placement.14% of the Bank's Adjusted Net Bank Credit (ANBC). The Bank looks at agri-business as an inclusive and profitable business proposition. 38 . the Bank has made investment of USD 152 million at overseas branches as against USD 153 million in the previous year. Under commodity business. the Bank's agricultural borrower base grew by 33. with more than half of those employed being women.526 crores in the previous year. The total agriculture loan outstanding in the Bank was 15. The agricultural loans outstanding formed 11. the Bank also has an exclusive team of officers for onsite and offsite monitoring. developed by Bank's IT team. The lending to MSME continued to be impressive and the Bank achieved its overall priority sector lending commitments. the Bank has created 9 commodity business centres to which 74 branches are linked. The Bank has built strong sales and relationship teams to source new relationships and deepen existing ones. financing against warehouse receipts). so as to avoid operational. Of this as on 31st March 2009. and has strengthened the credit appraisal teams to improve the quality of credit appraisal and reduce the turnaround time.42. the business is carried out under three segments: retail agriculture. equities and others was Rs.45% over the previous year and closed with 1. This has helped in raising levels of business without any compromise on risk management or customer service. During 2009-10.

The Board sets the overall risk appetite and philosophy for the Bank. the international operations of the Bank displayed resilience and recorded impressive growth in assets and deposits. the Operational Risk Management Committee (ORMC) and the Credit Risk Management Committee (CRMC) operate within the broad policy framework of the Bank. Hong Kong and DIFC-Dubai. and has been working towards offering private banking services out of its foreign branches. The total assets of the foreign branches now constitute 7. Despite the prevailing recessionary trends in the developed world economies.The Bank believes that micro-credit and microfinance services are major enablers of financial inclusion to the under privileged sections of society. The Bank has developed in-house skills to manage key areas of risk viz. The credit risk management framework integrates quantitative processes with qualitative judgement to support orderly growth in the asset book while ensuring an acceptable risk level in relation to return. trade finance. besides alliances with banks and exchange houses in the Gulf Cooperation Council (GCC) countries. the Bank's retail initiatives in the GCC caters to the large Indian diaspora and promotes the Bank's NRI products.50 lacs. 39 . In a year marked by an unprecedented upheaval of the financial markets that has changed the contours of the global financial system. the Asset-Liability Committee (ALCO).30 billion from USD 1. market risk and operational risk. treasury and risk management solutions. Most of the beneficiaries are poor women engaged in small and marginal enterprises. and representative offices in Shanghai and Dubai. which has now commenced. The microfinance business gained significant momentum during the year with an impressive growth of 80% in the portfolio. and maintained profitability. RISK MANAGEMENT The role of risk management focusses strongly on anticipating vulnerabilities in a deteriorating situation. The Bank's risk management approach relies on the establishment of comprehensive processes and internal control mechanisms. The Bank has 86 microfinance relationships in 18 states of which 4 are in the North East with a corresponding client outreach of around 18. the asset quality at foreign offices continues to be satisfactory with zero level of non-performing assets. The international presence of the Bank now comprises branches in Singapore. In our endeavor to focus on a steady and disciplined growth of the micro finance business. Emphasis is placed on evaluation and containment of risk at the level of individual counterparty exposures. While the foreign branches primarily offer corporate banking. The Bank continually evaluates the prospect of a wider product offering as well as deeper reach. INTERNATIONAL BANKING The international operations of the Bank are at the core of the strategy to expand the horizon of the product offerings and delivery channels to various geographies and across client segments..90% of the total assets of the Bank and grew by 38. while preserving the independence and integrity of risk assessment. Credit Risk The Bank's credit risk management process integrates risk management into the business management processes. credit risk. we partnered with highly credible Micro Finance Institutions (MFIs) across the country. The Bank also continued its strategy of extending loans under various central government sponsored schemes. we have supported upcoming MFIs in remote areas of Bihar. Senior management committees such as various credit and investment committees.66 billion a year ago. review various aspects of risk arising from the businesses undertaken by the Bank. The Committee of Directors and the Risk Management Committee. and initiating curative measures proactively through quantitative and qualitative assessments of such embedded risks. which are sub-committees of the Board. independent risk oversight and periodic monitoring through the sub-committees of the Board. In line with our overall strategy to support MFIs operating in underdeveloped parts of the country. Tripura and Madhya Pradesh. The Bank's risk management processes are guided by well-defined policies appropriate for the various risk categories. and analysis of portfolio behavior.55% to touch USD 2. The use of sophisticated modelling techniques to contain credit risk is also being used for effective and continuous monitoring. covering the spectrum of retail and corporate banking solutions.

The growth in the asset book of the Bank during the year highlights the importance of prudent credit risk management practices both at the individual obligor level as well as at the portfolio level. The Bank has a structured and standardized credit approval process, which includes a well-established procedure of comprehensive credit appraisal. The internal credit rating system continues to provide integrity, credibility and objectivity to the lending process to ensure an acceptable risk level in relation to the expected return. Portfolio level risk analytics provide insight into capital allocation required to absorb unexpected losses at a defined confidence level. Dimensions of portfolio level risk analysis carried out by the Bank includes ensuring optimal spread of risk across various rating classes and prevent undue risk concentration across various industry segments in the portfolio. A graphical representation highlighting the spread of risk across various rating grades for large corporates and the MSME portfolio as on 31st March 2009 is given below:
L

Market Risk Market risk is the risk to the Bank's earnings and capital due to changes in the market level of interest rates, prices of securities, foreign exchange and equities, as well as the volatilities of those changes. The Bank is exposed to market risk through its trading activities, which are carried out for customers as also on a proprietary basis. The Bank adopts a comprehensive approach to market risk management for its trading, investment and asset/liability portfolios. For market risk management, the Bank uses both nonstatistical measures like position, gaps and sensitivities (duration, PVBP, option greeks) and statistical measures like Value at Risk (VaR), supplemented by stress tests and scenario analysis. The Bank uses historical simulation and its variants for computing VaR for its trading portfolio. VaR is calculated at a 99% confidence level for a one-day holding period. The VaR models for different portfolios are back-tested at regular intervals and the results are used to maintain and improve the efficacy of the model. The VaR measure is supplemented by a series of stress tests and sensitivity analysis that estimates the likely behaviour of a portfolio under extreme but plausible conditions and its impact on earnings and capital. Liquidity Risk Liquidity Risk is defined as the current and prospective risk to earnings or capital arising from a bank's inability to meet its current or future obligations on the due date. The Bank's ALM policy defines the gap limits for its structural liquidity position. The liquidity profile of the Bank is analyzed on a static basis by tracking all cash inflows and outflows in the maturity ladder based on the expected occurrence of cash flows. The liquidity profile of the Bank is also estimated on a dynamic basis by considering the growth in deposits and loans, investment obligations, etc. for a short-term period of three months. The Bank's ability to meet its obligations and fund itself in a crisis scenario is critical and, accordingly, liquidity stress tests are conducted under different scenarios at periodic intervals to assess the impact on liquidity of stressed conditions. The liquidity positions of overseas branches are managed in line with the Bank's internal policies and host country regulations. Such positions are also reviewed centrally by the Bank's ALCO along with domestic positions.

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Operational Risk Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. A policy on management of operational risk has been approved by the Bank to ensure that operational risk within the Bank is properly identified, monitored and reported in a structured manner, and this policy is reviewed annually. The Bank has an Operational Risk Management Committee to oversee application of the aforesaid policy directives. Each new product, process or service introduced by the Bank is subjected to a rigorous risk review and signoff process by the Product Management Committee where all relevant risks are identified and assessed by departments independent of the risk-taking unit proposing the product, process or service. Changes proposed to the existing products/processes as well as outsourcing activities are also subjected to a similar process by the Change Management Committee and the Outsourcing Committee respectively. The IT Security Committee of the Bank provides direction for mitigating the operational risk in Information Systems. The business units put in place the internal controls as approved by such committees to ensure a sound and well controlled operating environment in respect of various activities of the Bank. INFORMATION TECHNOLOGY Technology is the key to deliver customised financial solutions. The Bank aims to maintain a scalable computing infrastructure backed by a robust network architecture that delivers service across multiple channels for customer convenience and cost reduction through operational efficiency. In order to retain a competitive edge, the Bank's technology infrastructure is continuously upgraded. In tune with business priorities, the IT strategy has been focused on capacity enhancement to be able to maintain an efficient servicing capability in a multi-channel delivery environment. During the year, many pioneering efforts have been taken towards use of technology in the Bank such as being the first among Indian banks in submitting centralised R-Return for foreign exchange transactions by the 'B' category branches to RBI, being the first bank in the country to market EMV chip embedded Debit Platinum, Travel Currency and Credit Platinum cards, development of a product for Business Banking for printing cheques at the customer locations after due validations of issuing a cheque series. This facility allows integration with the corporate ERP systems to print dividend warrants and issue payments directly from customers' premises. The Bank has taken various initiatives in the area of increasing use of technology in its day-to-day operations. The most notable achievement this year was in the area of financial inclusion, where the Bank was successful in deploying a separate dedicated core banking solution, which has the capability of maintaining liability accounts as well as agricultural lending accounts for microfinance. The current volumes handled in the software are 6.21 lacs accounts. This has allowed the Bank to substantially reduce transaction costs while complying with regulatory standards. The unique capability of the solution is the bulk account-opening and transaction-handling potential without manual intervention. The Bank was in the forefront in the use of advanced imaging technologies to improve workflow processing and reduce the cost of centralized operations of CPU and TFC (Trade Finance Centre). The imaging technologies like Optical Character Recognition (OCR), Optical Mark Recognition (MCR) have been deployed to capture images of account opening forms of liability and trade finance documents. This facility was extended to the Hong Kong branch operations and helped in improving processing efficiencies. The Bank has also extended this technology to its Cheque Truncation System (CTS) implemented in the NCR region. The Bank's New Delhi Service Branch caters to more than 50,000 clearing instruments per day for the branches within its jurisdiction. The Bank was awarded the ISO 27001:2005 certification for process management in delivery channels (ATM and Internet Banking) in February 2009. The ISMS certification was given for conforming to quality standards in respect of protecting client related information from different kinds of security threats, and for maintaining integrity as the supplier of services to external and internal customers.

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The Bank's IT proficiency was recognized in the Indian Banking Technology awards conducted by IBA (Indian Banks Association) in January 2009 and the Bank received awards in the categories of (a) Best use of Business Intelligence, and (b) Rural Initiatives for Financial Inclusion, from among the 10 categories of awards.

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No instance of compliance failure was registered during the year against the Bank by any of the regulators. Internal Audit department has conformed to 'Quality Management System' (QMS) and its internal processes have been certified to be ISO 9001:2000 compliant by International certifying agency M/s Det Norske Veritas AS. 50 crores. Netherlands. This ensures that the operating and business units adhere to systems and procedures as also regulatory and legal requirements. CBO Division is created at branches where advances exceed Rs. It is also pro-active in recommending quality enhancement measures in operational processes based on audit findings. laws and standards of regulatory as well as non-regulatory bodies. In case of other branches. The code of commitment of micro and small enterprises was adopted during the year to support the development of this segment.OPERATIONS AND COMPLIANCE Operational procedures for delivery of products and services were constantly refined during the year under review from the perspective of implementation of best practices. Introduction of a compliance self-testing template for business functions and branches is expected to aid the achievement of compliance objectives of the Bank. risk identification and containment. INTERNAL AUDIT The Bank's Internal Audit function performs an independent and objective evaluation of the adequacy and effectiveness of internal controls. 43 . 8 city specific centralised CBO Hubs called Credit Management Centres (CMCs) have been opened during the year for standardizing the skill pool for efficient monitoring and control of advances. The Bank continued to vigorously pursue its commitment in adhering to the highest standards of compliance and management of compliance risks in the current global meltdown. The technological initiatives undertaken for dissemination of regulatory/internal guidelines and inculcation of compliance culture at the grass roots level were well received. CBO Divisions and CMCs handled 86% of the Bank's total domestic non-retail credit portfolio. the mechanism for monitoring and identification of suspicious transactions in accordance with the regulatory requirements was further reinforced. The existing products and processes were subjected to vetting from the compliance standards during the year in accordance with the Bank's compliance policy. both domestic and overseas. Suitable steps are being undertaken to meet the emerging challenges in the identification of unusual transactions through customer profiling and inculcation of a compliance culture at the grass-root level. ensuring that trained and experienced personnel are monitoring a substantial percentage of advances. CORPORATE BANKING OPERATIONS Corporate Banking Operations (CBO) within the Bank involves monitoring the accounts of large/mid-corporates and SME customers while ensuring compliance with the regulatory guidelines and systems and procedures of the Bank in the conduct of credit operations. The effort is to continuously benchmark against international best practices and procedures in the area of internal control systems. Facilitation Centres have been set up at select branches of these 8 centres for providing prompt customer service in co-ordination with CMC. in order to ensure that the operational risks in monitoring the advances and other related issues are well mitigated. As part of business process re-engineering. trained and experienced manpower is posted when the number of borrowal units and the advances level exceed a minimum threshold level. The skill sets of staff on implementation of regulatory guidelines on 'Know Your Customer' norms and fraud prevention were strengthened during the year. which is based upon the rules. domestic trade finance and related operations. An operational framework has been established in order that all transactions are handled with precision. Focused efforts were made at all levels to ensure prompt redressal of customer grievances. During the year. Operational parameters and control functions were refined to ensure efficient functioning of branches. Other branches located at these cities have been mapped to the closest facilitation centres for all their credit.

Information System audits are also conducted at all the branches. the Internal Audit Function has a reporting line to the Audit Committee of the Board. the operations of the Internal Audit function have been decentralized by opening Zonal Internal Audit offices at four metros namely Delhi. During the year.313 girls and 22. the Foundation partnered with sixteen more NGOs. focusing on projects that encourage 'Inclusive Education' for physically challenged children. involving 12 States are covered by the Foundation programmes. The scope of risk-based internal audit encompasses the examination of adequacy and effectiveness of internal control systems. for educating underprivileged children and special children all over India. retail asset centres and service branches. taking the partnership to a total of 41 NGOs. To ensure independence. An annual audit plan is drawn up on the basis of a risk profiling of auditee units. the challenge that emerged was to ensure against any dilution in the quality of talent while fulfilling the targeted numbers. Internal Audit has also developed an effective off-site surveillance system. There was a net staff increase of 5. The overseas staff complement has grown almost twofold from 44 to 90 in the same period in tune with the growth in businesses at our overseas centres. HUMAN RESOURCES The ultimate aim of the Human Resources function is to build and manage a motivated pool of professionals by grooming internal resources and recruiting the right skills from the market. focusing on early childhood programmes for 2-6 year olds. Central Office departments of the Bank are also subjected to inspection and audit.742 boys. The projects supported by the Foundation include focusing on quality education for the underprivileged child (with a special focus on the girl child). The Foundation has committed grants for projects running upto three years.055 children are covered under the programmes that include 24. as well as external compliance and evaluating the risk residing at the auditee units. CORPORATE SOCIAL RESPONSIBILITY Through the Axis Bank Foundation. Although the economic downturn in the latter half of the year brought in its wake a larger availability of manpower in the market. supporting programmes to handle the Highway Rescue project. develop a high performance work-ethic and create a culture of continuous learning and skill development.The Bank's Internal Audit function undertakes a comprehensive risk based audit of all branches.885 over 2007-08 translating to a growth of 40% compared to a 48% growth in the previous year. Kolkata and Mumbai for better operational efficiency and quicker turnaround time. the Banks' Data Centre. and teacher training programmes which result in competencies to teach pre-primary and primary school children. One of the major platforms on which the success of the Bank's corporate strategy rests is bringing on board the requisite skills within the overall ceiling of the manpower budget. the Bank seeks to define and effectively fulfill its Corporate Social Responsibilities as a corporate citizen and has therefore agreed to allocate upto one percent of its net profit every year to the Foundation for its activities. 536 education centres. Around 60% of the Bank's total business and 75% of total advances are subjected to concurrent audit. Business Continuity Centre as also all the relevant departments at Central Office. During the year. which oversees its performance and reviews the effectiveness of controls laid down by the Bank and compliance with regulatory guidelines. Chennai. 47. 76% 3% 1% 20% PROFILE BY AGE 44 .

00% 2. A combination of classroom sessions. There has been a significant reduction in the year-end attrition level compared to the previous year. 0.73% 2. training man-days have external programmes and e-learning initiatives are part of the registered an increase of 71% in the year under review as against 62% in the earlier year. ongoing interactions with staff at all levels and providing staff with opportunities to seek aspirational roles through internal job postings. In the process.04% 53. The Bank's Performance Management system. performancelinked rewards and incentives. Your Bank will continue to pursue the objective of accomplishing its corporate mission and core values through fulfillment of its Human Resources agenda for the eventual purpose of delivering a high level of customer satisfaction. The training team has lived up to this challenge through focused programmes for newly recruited employees as well as for the more experienced domain specialists. sends a clear message of meritocracy.Besides recruitment. a merit-based promotion process.74% 33.95% INTELLECTUAL CAPITAL 45 . One of the major challenges in this regard is the requirement to scale up training bandwidth to keep pace with the growing workforce. attrition management learning and skill development and management of performance are the other key areas of the Human Resources function. contribute to retention of staff at all levels. The ultimate aim of the training process is to create a knowledgeable pool of talent delivering optimum value to customers. The Bank also continues to espouse the policy of affirmative action by being an equal opportunity employer. Employee engagement measures like a competitive compensation structure. where recognition is directly related to performance.53% 4. Axis Bank continues to be a young Bank with an average age of 29 years and a talent pool comprising a mix of new recruits and experienced officers. which we believe our training initiative has been able to achieve. training module.

In our opinion. i. iii. 1956. 2. The balance sheet and profit and loss account are drawn up in conformity with Forms A and B (revised) of the Third Schedule to the Banking Regulation Act. 3. 1956. Batliboi & Co. annexed thereto. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.: 048749 Place: Mumbai Date: 20 April 2009 49 . In our opinion. Mehta Partner Membership No. We have audited the attached balance sheet of Axis Bank Limited ('the Bank') as at 31 March 2009 and also the profit and loss account and cash flow statement for the year ended on that date. which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory. On the basis of written representations received from the directors. in case of the balance sheet. of the profit for the year ended on that date. We conducted our audit in accordance with auditing standards generally accepted in India. In our opinion and to the best of our information and according to the explanations given to us. 1956 in the manner so required for banking companies. evidence supporting the amounts and disclosures in the financial statements. Our responsibility is to express an opinion on these financial statements based on our audit. In our opinion. the said accounts give the information required by the Companies Act. read with Section 211 of the Companies Act. We believe that our audit provides a reasonable basis for our opinion. An audit includes examining. we report that none of the directors is disqualified from being appointed as a director in terms of clause (g) of subsection (1) of Section 274 of the Companies Act. in case of the profit and loss account. insofar as they apply to banks. as well as evaluating the overall financial statement presentation.AUDITORS' REPORT To The members of Axis Bank Limited 1. on a test basis. ii. These financial statements are the responsibility of the Bank's management. a) b) c) d) e) f) g) For S. the balance sheet. and taken on record by the Board of Directors.R. and in case of cash flow statement. as on 31 March 2009. of the cash flows for the year ended on that date. profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account. the transactions of the Bank which have come to our notice have been within its powers. profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act. Chartered Accountants per Viren H. The balance sheet. We report that: We have obtained all the information and explanations. 4. 1949. of the state of the affairs of the Bank as at 31 March 2009. proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the Bank's branches. An audit also includes assessing the accounting principles used and significant estimates made by management. and give a true and fair view in conformity with the accounting principles generally accepted in India.

588.854 463.985.477. CAPITAL AND LIABILITIES Capital Reserves & Surplus Employees' Stock Options Outstanding (Net) Deposits Borrowings Other liabilities and provisions TOTAL ASSETS Cash and Balances with Reserve Bank of India Balances with banks and money at call and short notice Investments Advances Fixed Assets Other Assets TOTAL Contingent liabilities Bills for collection Significant Accounting Policies and Notes to Accounts Schedules referred to above form an integral part of the Balance Sheet 17 12 6 7 8 9 10 11 94.778.220.611.233.590.451.107.873 37.262. P.095.303.762 99. L.111 1.228.868 876. J.446 9.955.485 1.AXIS BANK LIMITED .573. H.115 73.487 3.835 337. Vaish Director 50 .845.477.103 55.514 815.569 51. Singhal Director R.835 12.051 98.568.501 27.: 048749 P. Batliboi & Co.487 2. Oza Company Secretary Somnath Sengupta President Finance & Accounts Date: 20 April 2009 Place: Mumbai N.051.056. Mehta Partner Membership No.854.545.206 56.487 2.097 84.008 596. B.16) 3 4 5 3.240.577. in Thousands) As on 31-03-2008 (Rs.405 75.972 1.220. in Thousands) As per our report of even date For S.487 (Rs.095.126 139.997 83.567.728.976.927 1 2 17(4.128 1.173.192.658 10.741.052 101.BALANCE SHEET BALANCE SHEET AS ON 31 MARCH 2009 As on 31-03-2009 Schedule No.603.939 21.778. Nayak Chairman & CEO per Viren H. Chartered Accountants For Axis Bank Ltd.476.092.676 1. J. R. Patil Director R. C.

549.2.865 33.PROFIT & LOSS ACCOUNT PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2009 Year ended Year ended 31-03-2009 31-03-2008 (Rs.584 15.548.290 10.153.637 70.863 77.II) Balance in Profit & Loss account brought forward from previous year AMOUNT AVAILABLE FOR APPROPRIATION APPROPRIATIONS : Transfer to Statutory Reserve Transfer to Investment Reserve Transfer to Capital Reserve Proposed Dividend (includes tax on dividend) Balance in Profit & Loss account carried forward TOTAL VI EARNINGS PER EQUITY SHARE 17(5.269 11.273 44. in Thousands) (Rs.31 As per our report of even date For S.151 17.480.231 4.389 2.4) 15 16 17(5.781 137.689 33.290.380 15.467.001.617 21.61 50.572 268. J.677.492.2. Mehta Partner Membership No.582.968.538. C. B.27 32.740 21.127 19.184 119.159 23.2) (Face value Rs.030 50.per share) (Rupees) Basic Diluted Significant Accounting Policies and Notes to Accounts 17 Schedules referred to above form an integral part of the Profit and Loss Account 17(5. J.: 048749 P.1) 13 14 71. R.273 4.323. Patil Director R. Chartered Accountants For Axis Bank Ltd.008.692.205. Oza Company Secretary Somnath Sengupta President Finance & Accounts Date: 20 April 2009 Place: Mumbai N.742 28.039 Schedule No.AXIS BANK LIMITED . P. L.030 2.710. Nayak Chairman & CEO per Viren H.538.396 622 1.856 28.199. H.095.2.354.053.053 18.170.001.538.516. Vaish Director 51 .297.1) 17(5. Batliboi & Co.15 31.1. in Thousands) 108. Singhal Director R.692.689 21.10/. I INCOME Interest earned Other income TOTAL II EXPENDITURE Interest expended Operating expenses Provisions and contingencies TOTAL III IV V NET PROFIT FOR THE YEAR (I .749 10.888 88.954.

AXIS BANK LIMITED .194 (7. in Thousands) 27.574 2.519) 59.661 Adjustments for: (Increase)/Decrease in investments (Increase)/Decrease in advances Increase/(Decrease) in borrowings Increase/(Decrease) in deposits (Increase)/Decrease in other assets Increase/(Decrease) in other liabilities & provisions Direct taxes paid Net cash flow from operating activities Cash flow from investing activities Purchase of fixed assets (Increase)/Decrease in Held to Maturity investments Proceeds from sale of fixed assets Net cash used in investing activities (3.226.999 3.CASH FLOW STATEMENT CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2009 Year ended 31-03-2009 (Rs.123) 1.801) 105.500 719.078.262.142.667 Year ended 31-03-2008 (Rs.679 (11.514) 45.229) 4.534.462.918 (1.357 297.834) (42.965 24.918.950.595) (4.586 (2.478.739) 126.614.375 288.733 213.234.795.647 3.127 (6.971.351.000 6.851.939 16.604.762 35.201) (35.756 (6.275) (231.356.140 65.760.025.437) 1. in Thousands) Cash flow from operating activities Net profit before taxes Adjustments for: Depreciation & impairment provision on fixed assets Depreciation on investments Amortization of premium on Held to Maturity investments Provision for Non Performing Advances/Investments (including bad debts) General provision on securitized assets Provision on standard assets Provision for loss in present value for agricultural assets Provision for wealth tax Loss on sale of fixed assets Provision for country risk Contingent provision against derivatives Provision for restructured assets Amortization of deferred employee compensation 1.002 927.500 (719.742 7.055.333 (26.884.100) (225.322.900 2.459 977.406.867.886.828.386 (97.516.733) 654.200 1.737 52 .560) 398.421) (93.581.419.795) 2.846 (8.663 1.355.372 (47.883 81.486 1.284.483) 14.510) 40.044.155 151.262.

L.802) 760.: 048749 P.087) 43.126. in Thousands) Note : 1. R.168.630 12.954 375. in Thousands) Cash flow from financing activities Proceeds from issue of Subordinated debt.051 125. C.957 (720. Patil Director R. Batliboi & Co. As per our report of even date For S.136 55. Chartered Accountants For Axis Bank Ltd.515.859. balances with banks and money at call & short notice (refer schedule 6 and 7 of the Balance Sheet).205 106.032 (1.614 (2.042. balances with Reserve Bank of India. Perpetual debt and Upper Tier II instruments (net of repayment) Proceeds from issue of Share Capital Proceeds from Share Premium (net of share issue expenses) Payment of Dividend Net cash generated from financing activities Effect of exchange fluctuation translation reserve Net increase in cash and cash equivalents Cash and cash equivalents as at 1 April 2008 Cash and cash equivalents as at 31 March 2009 19. Mehta Partner Membership No.932 22.050.488.042.CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2009 Year ended 31-03-2009 (Rs.404 Year ended 31-03-2008 (Rs.789 44. B. P.353 69.553 125.923.706. Oza Company Secretary Somnath Sengupta President Finance & Accounts Date: 20 April 2009 Place: Mumbai N. Nayak Chairman & CEO per Viren H.610 25. J. Cash and cash equivalents comprise of cash on hand & in ATM.257.183. Singhal Director R.993) 16. Vaish Director 53 . J. H.404 150.

000 5.248.751 15.000 V.394 4.000 3.385) 22.545.464 (472.033.each fully paid-up) [Included above are 27.790 5.619.389 1.115.151.677.590.847.552) 58.000.865 98.000 883.669 Equity Shares of Rs.898 1.051 3.577.231 2. Investment Reserve Account Opening Balance Additions during the year 622 622 IV. General Reserve Opening Balance Additions during the year 143.295 45.207 II.524. 10/.898 (4. Capital Reserve Opening Balance Additions during the year 1.361 VII.621 GDRs (previous year 13. in Thousands) SCHEDULE 1 .136 17.572 8.732.509 268.000.SCHEDULES SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.835 143.000.062.467.480.033.394 13.610 124.751 106.RESERVES AND SURPLUS I.000.709.956.732.822 2.689 84.538.396 13.458)] SCHEDULE 2 .000 Equity Shares of Rs.621 equity shares (previous year 13. 10/.524.097 8.000 143.000 143.538. Share Premium Account Opening Balance Additions during the year Less: Share issue expenses 58.458) representing 27.500.861 59.each (Previous year .939 - 54 .000 Equity Shares of Rs.129 VI.207 382.each fully paid up (Previous year .118 Equity Shares of Rs.each) Issued. Subscribed and Paid-up capital 359.CAPITAL Authorized Capital 500. Balance in Profit & Loss Account TOTAL 23. in Thousands) (Rs.005.357. Foreign Currency Translation Reserve Opening Balance Additions during the year [refer 17(4.068 III.AXIS BANK LIMITED .10/.847.151.10/.846. Statutory Reserve Opening Balance Additions during the year 5.107.5)] 17.

71.124 24.221.741.488.777.737.795.318 3.200.OTHER LIABILITIES AND PROVISIONS I.347 12.826 99.537 71.738 2.000 18.173.31 crores (previous year Rs.511. Borrowings in India (i) Reserve Bank of India (ii) Other Banks (iii) Other institutions & agencies Borrowings outside India TOTAL Secured borrowing included in I & II above SCHEDULE 5 .000 15. 5.1.801 4.824. VI.385. V.2)] Represents Rs.900.DEPOSITS A.173.180.649.405 - Represents Subordinated Debt of 4.262.928 1. VII.367.773.163 55.487 258.97 crores) 55 .972 As on 31-03-2008 (Rs.741. II. Bills payable Inter .854. 10.000/.822 611.134 75. VIII.each. 1.BORROWINGS I.899 439.641.00.997 1. Deposits of branches outside India TOTAL SCHEDULE 4 . in the nature of Non Convertible Debentures [Also refer 17 (5. 1.052 8.55 crores) of Perpetual Debt and Rs.246.206 II.521 199.469.183 10.370.760 1. IV. Deposits of branches in India II. Demand Deposits (i) From banks (ii) From others II.562 2.893 Bonds (previous year 15.862 Bonds) of Rs.148. 447. 10.206 863.748.494. in Thousands) 13.661.568.519 56.466. I.015 18.676 22.540 Bonds (previous year 5.102 36. 398.163.500 3. in Thousands) SCHEDULE 3 .office adjustments (net) Interest accrued Proposed dividend (includes tax on dividend) Subordinated Debt # Perpetual Debt and Upper Tier II instruments * Contingent provision against standard assets Others (including provisions) @ TOTAL # * 19.each and 32.321.267 191.78 crores (previous year Rs.886 50.841.315.150.534.183 15.824.000.000/. Nil (previous year Rs.149.859 876.SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31 MARCH 2009 As on 31-03-2009 (Rs. I.00. Savings Bank Deposits III.417 876. III.893 Bonds) of Rs.000 16.476.583 234.916.948 4.345.240.957.180 35.262.052 1.589.38 crores) of Upper Tier II instruments [Also refer 17 (5.1.3)] @ Includes contingent provision against derivatives of Rs. Term Deposits (i) From banks (ii) From others TOTAL B.762 - 5.644.725 101.

811 78.528.461.170.276 57.761 55.390 38.853.647 1.093 10.976. Outside India (i) in Current Accounts (ii) in Other Deposit Accounts (iii) Money at Call & Short Notice TOTAL GRAND TOTAL (I+II) As on 31-03-2008 (Rs.190 8.406.131 31.203.985.056.763.729.369.645 51.845.569 5.203.103 15.293 73.545 11.806.256. Balances with Reserve Bank of India : (i) in Current Account (ii) in Other Accounts TOTAL SCHEDULE 7 .703 44.776 1.CASH AND BALANCES WITH RESERVE BANK OF INDIA I.835 56 .854 3. Cash in hand & in ATM [including foreign currency notes] II.680.BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I.SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31 MARCH 2009 As on 31-03-2009 (Rs. in Thousands) 15.777. In India (i) Balance with Banks (a) in Current Accounts (b) in Other Deposit Accounts (ii) Money at Call and Short Notice (a) with banks (b) with other institutions TOTAL II.398 9.292 94. in Thousands) SCHEDULE 6 .600 4.795.414.192.440 1.908.059 42.

781 (1. Investments outside India in (i) Government Securities (including local authorities) (ii) Subsidiaries and / or joint ventures abroad (iii) Others Gross Investments outside India Less : Depreciation in the value of investments Net investments outside India GRAND TOTAL (I+II) 277.571. 840.389 5.417.211. Investments in India in (i) Government Securities ## ** (ii) Other approved securities (iii) Shares (iv) Debentures and Bonds $ (v) Investment in Subsidiaries / Joint Ventures (vi) Others @ (Mutual Fund units.385 330. 7.SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.360 (52.96 crores under the Liquidity Adjustment Facility (previous year Rs.387.305 (958.95 crores (previous year Rs.871.770.571.1.138.920 108.697 337.138.051.303.86 crores (previous year Rs. PTC etc.717 140. 175.663) 6.INVESTMENTS I.003 976. in Thousands) SCHEDULE 8 .129 463. 530. 3.680 (685.979.994) 455.008 @ Includes deposits with NABARD Rs.) Gross Investments in India Less : Depreciation in the value of investments (includes provision for Non Performing Investments Rs.085.96 crores) Net investments in India II. in Thousands) (Rs.514 6.66 crores) ## Includes securities costing Rs.75 crores) and net of Repo borrowing of Rs.000. 943.77 crores) pledged for availment of fund transfer facility.935.688. NABARD deposits.000 15.850.924.551) 7. 1. 8.965. Nil) in line with Reserve Bank of India requirements $ Includes securities costing Rs.886. clearing facility and margin requirement ** Includes Repo Lending of Rs.788.855.000 31. Nil (previous year Rs.69 crores) and PTC's Rs.396) 201.618 380. 6. Nil (previous year Rs.272. CD / CP.06 crores) pledged for margin requirement 57 .311 8.698 456.378 331.360 6.680 8.29 crores.839. 503. previous year Rs.363 5.95 crores (previous year Rs.804.

114 276.621 185. which has been adjusted based on management estimate 58 . (i) Advances outside India Due from banks (a) Bills purchased and discounted (b) Syndicated loans (c) Others TOTAL GRAND TOTAL $ Includes advances against book debts.415 411.446 (ii) Cash credits.432.722.662.303 101.060 482.233 3. in Thousands) (Rs.244.928.807 596.157 66.011.271. overdrafts and loans repayable on demand (iii) Term loans TOTAL B.670.809. [ C I + C II ] 229.307 376.741.648.151.658 20.490.224 164.074 9.476.567. (i) Secured by tangible assets $ (ii) Covered by Bank/Government Guarantees && (iii) Unsecured TOTAL C.611.802.581.367 165.658 696.818 96.ADVANCES A. Advances in India (i) Priority Sector (ii) Public Sector (iii) Banks (iv) Others TOTAL II.514 62.698.611.206 815.228 596.291 815.658 2.905.181.443 1. in Thousands) SCHEDULE 9 . (i) Bills purchased and discounted 24.567.SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.218 683.378 109.689 577.473.236.801.243 713.446 482.090 53.461 20.246 596.906.942.327 815.611.598 30.382 17.439.446 (ii) Due from others - && Includes advances against L/Cs issued by Banks Advances are net of floating provision.652.642 213.677 31.283 542.567. I.628.

088) 9.626) 7.820) (7. 456.416.000) 10. 319. Other fixed assets (including Furniture & Fixtures) At cost at the beginning of the year Additions during the year Deductions during the year Depreciation to date TOTAL III.14 crores (previous year Rs. IV.FIXED ASSETS I.943.000 (765.826 10.621 37.188 18.05 crores) 13.451.130 SCHEDULE 11 . in Thousands) SCHEDULE 10 . Inter-office adjustments (net) Interest Accrued Tax paid in advance/tax deducted at source (net of provisions) Stationery and stamps Non banking assets acquired in satisfaction of claims Others # TOTAL # Includes deferred tax assets of Rs.322 391.886.603) (86.445 27.785 9.029 (117.117 9. CAPITAL WORK-IN-PROGRESS (including capital advances) GRAND TOTAL (I+II+III+IV) 765. III.728.228.165.192) 414.426) 364.128 59 .873 765.054 500. in Thousands) (Rs. VI. II.930 337. Premises At cost at the beginning of the year Additions during the year Deductions during the year Depreciation to date TOTAL II.581.680 4.629 (61.447 8.832 420.753 9.380.010) (124.564 7.845.218.SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.000 (276.501 12.485 9.OTHER ASSETS I.748 1. Assets on Lease At cost at the beginning of the year Additions during the year Deductions during the year Depreciation to date Provision for impairment TOTAL IV.078.603 (399.585 23.186.284.993 3. V.296 224.345 (240.147.309.421) 773.710 447.094.154.803.047 574.916) (5.

588.502 1.620.244 7. Forward Rate Agreement & Interest Rate Futures (c) Foreign Currency Options TOTAL IV.603.963.997 804.980 2.695 82.204.547. in Thousands) (Rs.815.595 14. Currency Swaps.542 1.343 2.404.000.955.251.718.114 643.649. in Thousands) SCHEDULE 12 .419.487.068 1. Acceptances.000 2.514 829.SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.755.092.691 - 60 .303 159.992 161.202.825 1.129 84. II.271 12.897 2.369. VI.CONTINGENT LIABILITIES I.281. Claims against the bank not acknowledged as debts Liability for partly paid investments Liability on account of outstanding forward exchange and derivative contracts : (a) Forward Contracts (b) Interest Rate Swaps. endorsements and other obligations Other items for which the bank is contingently liable TOTAL 193.408.211.126 117.565.465. Guarantees given on behalf of constituents: In India Outside India V. III.529.

X.037 (81.90 crores) and profit on account of portfolio sell downs/securitization Rs.16. Payments to and provisions for employees Rent.856 47.145 34.569 21.820 6.239 1. taxes and lighting Printing and stationery Advertisement and publicity Depreciation on bank's property (incl.95 crores (previous year Rs.SCHEDULES FORMING PART OF THE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2009 Year ended 31-03-2009 SCHEDULE 13 .613 2. II. II. III. IV.269 VIII.456.354. VI. 44.549. II.663 7. IV. III.502. impairment provision) Directors' fees.617 28.136.625 3.235.886.976.658.425.011.079.895.023.803.762) 74.338 3.089.014 752.702.595. exchange and brokerage Profit/(Loss) on sale of Investments/Derivative transactions (net) Profit on exchange transactions (net) Profit/(Loss) on sale of fixed assets (net) Income earned by way of dividends etc.010 28. VI.076.793 6.703 587.177 1.OTHER INCOME I.884.954.008 5.210 8.582.648 51. Law charges 61 . from subsidiaries/companies and/or joint venture abroad/in India Lease rentals Miscellaneous Income [including recoveries on account of advances/investments written off in earlier years Rs.151 Year ended 31-03-2008 (Rs.253 539. III.900 1.816 (151. IV. 62.011.OPERATING EXPENSES I. in Thousands) SCHEDULE 16 .919 1. V.999) 13.INTEREST EXPENDED I.140 7.318 108. XI.034 2.647 818.074. Commission.81 crores (previous year Rs.363 497.101.370 44. IX.06 crores)] TOTAL SCHEDULE 15 .581.375 2.515.035 2.763. II. III.202.332 463.938 1.360 1.338 107. XII. in Thousands) (Rs.603 30.852. 9.053.968.550.156 1. VII.207.529. allowance and expenses Auditor's fees and expenses Postage. Interest on deposits Interest on Reserve Bank of India/Inter-bank borrowings Others @ TOTAL @ Including interest on repos & subordinated debt 62. VII.063 1.742 37.970 744.528 2.516 21.711.491 2.116 70.157 2.230 1.028 6. Interest/discount on advances/bills Income on investments Interest on balances with Reserve Bank of India and other inter-bank funds Others TOTAL SCHEDULE 14 .732. V. Repairs and maintenance Insurance Other expenditure TOTAL 9.940 767.127 6.703.888 20. telegrams.781 17.INTEREST EARNED I. telephones etc.664 21.492.765 71.215 5.199.

circulars and guidelines issued by the Reserve Bank of India ('RBI') from time to time and Notified accounting standard by Companies (Accounting Standards) Rules.e. SLR securities and the total SLR securities held in HTM category are not more than 25% of its demand and time liabilities as on the effective date. 62 . are classified as HTM securities. 4 4. which remain unsold for a period of 90 days are reclassified as AFS securities as on that date. and • Held to Maturity ('HTM'). investments in India are classified under six categories . statutory requirements prescribed under the Banking Regulation Act. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. for disclosure in the balance sheet. Investments made outside India are classified under three categories . 2 Basis of preparation The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting.Government Securities.1 Significant accounting policies Investments Classification In accordance with the RBI guidelines. 2006 to the extent applicable and current practices prevailing within the banking industry in India. The effective date means the last Friday of the second preceding fortnight for computation of the aforesaid limit. Actual results could differ from those estimates. which the Bank intends to hold till maturity. and comply with generally accepted accounting principles. unless otherwise stated. Subsidiaries and/or Joint Ventures abroad and Others. 3 Use of estimates The preparation of the financial statements. the Bank may exceed the limit of 25% of total investments provided the excess comprises only of those securities which are eligible for complying with the Statutory Liquidity Ratio ('SLR') i. investments are classified at the date of purchase as: • Held for Trading ('HFT'). Any revisions to the accounting estimates are recognized prospectively in the current and future periods. Investment in Subsidiaries/Joint Ventures and Others. debentures and bonds. which are in the nature of advances are excluded.17 Significant accounting policies and notes forming part of the financial statements for the year ended 31 March 2009 (Currency : In Indian Rupees) 1 Background Axis Bank Limited ('the Bank') was incorporated in 1993 and provides a complete suite of corporate and retail banking products. As permitted by RBI. Investments not exceeding 25% of total investments. 1949. Debentures and Bonds. HFT securities. • Available for Sale ('AFS').Government securities. As per RBI guidelines. However. revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. In computing the investment ceiling for HTM portfolio for the aforesaid purpose. Other approved securities. Transfer of security between categories Transfer of security between categories of investments is accounted as per RBI guidelines. in conformity with generally accepted accounting principles. Shares. All other investments are classified as AFS securities. Investments that are held principally for resale within a short period are classified as HFT securities. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Investments that the Bank intends to hold till maturity are classified under HTM category.

Any premium on acquisition over face value is amortized on a constant yield to maturity basis over the remaining period to maturity. market value of unquoted State Government securities is derived by applying the YTM method by adding the appropriate mark up above the yields of the Central Government Securities of equivalent maturity notified by the FIMMDA/PDAI at periodic intervals. Commercial Paper and Certificate of Deposits being discounted instruments. for which current quotations are not available or where the shares are not quoted on the stock exchanges. The market/fair value for the purpose of periodical valuation of quoted investments included in the 'Available for Sale' and 'Held for Trading' categories is the market price of the scrip as available from the trades/quotes on the stock exchanges. if any. if any. Units of mutual funds are valued at the latest repurchase price/net asset value declared by the mutual fund. Net depreciation. within each category of investments is recognized in the profit and loss account. if any. are valued at break-up value (without considering revaluation reserves. The difference between the clean price of the first leg and clean price of the second leg is recognized as interest income/expense over the period of the transaction. which do not qualify for SLR requirement. the market price is derived based on the YTM for Government securities as notified by FIMMDA/PDAI and suitably marked up for credit risk applicable to the credit rating of the instrument. under each category is ignored. depreciation in their value. doubtful and loss assets based on the criteria stipulated by RBI. Market value of investments where current quotations are not available. In case the latest balance sheet is not available. except to the extent of depreciation previously provided. in case of preference shares where dividend is not received regularly. However. is recognized in the profit and loss account. debentures and preference shares where interest/dividend is received regularly.Valuation Investments classified under the HTM category are carried at acquisition cost. the shares are valued at Re 1 per company. the price derived on the basis of YTM is discounted in accordance with the RBI guidelines. 4. for which provisions are made in terms of a bucket-wise policy upon reaching 63 . compared to their original cost. price list of RBI or prices declared by Primary Dealers Association of India jointly with Fixed Income Money Market and Derivatives Association periodically. NPAs are classified into sub-standard. Investments classified under the AFS and HFT category are marked to market. are valued at carrying cost. in case of unquoted bonds. in case of bonds and debentures where interest is not received regularly. The matrix for credit risk mark-up for various credit ratings along with residual maturity issued by FIMMDA is adopted for this purpose. is determined as per the norms prescribed by the RBI as under: • market value of unquoted Government securities is derived based on the Prices/Yield to Maturity ('YTM') rate for Government securities of equivalent maturity as notified by Fixed Income Money Market and Derivatives Association of India ('FIMMDA') jointly with the Primary Dealers Association of India ('PDAI') at periodic intervals. if any) which is ascertained from the company's latest balance sheet (which is not more than one year prior to the date of valuation). The net appreciation. SGL account transactions. Further. in case of Central Government Securities. and equity shares. Treasury Bills. The book value of individual securities is not changed consequent to the periodic valuation of investments. the valuation is in accordance with prudential norms for provisioning as prescribed by RBI. Provisions for NPAs are made for sub-standard and doubtful assets at rates as prescribed by RBI with the exception for schematic retail advances. • • • • • • Investments in subsidiaries/joint ventures are categorized as HTM in accordance with RBI guidelines. the market price is derived by adding the appropriate mark up to the Base Yield Curve of Central Government Securities as notified by FIMMDA. Repurchase and reverse repurchase transactions Repurchase and reverse repurchase transactions are accounted as outright sale and outright purchase respectively.2 Advances Advances are classified into performing and non-performing advances (NPAs) as per RBI guidelines and are stated net of specific provisions made towards NPAs.

3 Country risk In addition to the provisions required to be held according to the asset classification status. However. Loss assets and unsecured portion of doubtful assets are provided/written off as per the extant RBI guidelines.BP. 64 . The countries are categorized into seven risk categories namely insignificant. moderate. 4. restricted and off-credit and provisioning made on exposures exceeding 180 days on a graded scale ranging from 0. Financial statements of foreign branches classified as non-integral foreign operations are translated as follows: • • • Assets and liabilities (both monetary and non-monetary as well as contingent liabilities) are translated at closing rates notified by FEDAI at the year end. provision is made in accordance with the guidelines issued by RBI.83/21. All resulting exchange differences are accumulated in a separate 'Foreign Currency Translation Reserve' till the disposal of the net investments. DBOD. If the country exposure (net) of the Bank in respect of each country does not exceed 1% of the total funded assets. is not reversed in terms of RBI guidelines. which satisfies the RBI prudential norms on provisioning. the excess provision held as of 14 November 2008. A general provision @ 0. the Bank continues to service the loans transferred to the assignee/SPV.40% for all other advances is made as prescribed by RBI through its circular no. high. contingent liabilities and contingent assets.specified stages of delinquency (90 days or more of delinquency) under each type of loan. Provisions. low. very high. appropriate provision/disclosure is made at the time of sale in accordance with AS 29. future servicing etc. post securitization. NPAs are identified by periodic appraisals of the loan portfolio by management. 4. Outstanding forward exchange contracts (excluding currency swaps undertaken to hedge Foreign Currency Non-Resident ('FCNR') deposits which are not revalued) and spot exchange contracts are revalued at year end exchange rates notified by FEDAI.00% as prescribed hitherto. Monetary foreign currency assets and liabilities are translated at the balance sheet date at rates notified by Foreign Exchange Dealers Association of India ('FEDAI'). In most cases. provisions are held for individual country exposure (other than for home country).25% to 2. 4.) accepted by the Bank. In respect of credit enhancements provided or recourse obligations (projected delinquencies.01.25% in case of direct advances to agricultural and SME sectors and 0.5 Foreign currency transactions In respect of domestic operations.002/2008-09 effective from 15 November 2008. Gain on securitization transaction is recognized over the period of the underlying securities issued by the SPV.25% to 100%. which requires the diminution in the fair value of the assets be provided at the time of restructuring. The Bank also provides credit enhancement in the form of cash collaterals and/or by subordination of cash flows to Senior Pass Through Certificate ('PTC') holders. All profits/losses resulting from year-end revaluations are recognized in the profit and loss account. For restructured/rescheduled assets.4 Securitization The Bank enters into purchase/sale of corporate and retail loans through direct assignment/Special Purpose Vehicle ('SPV'). 25% of the normal provision requirement is held. The resulting gains or losses on revaluation are included in the profit and loss account in accordance with RBI/FEDAI guidelines.BC. For exposures with contractual maturity of less than 180 days. no provision is maintained on such country exposure. Loss on securitization is immediately debited to profit and loss account. transactions denominated in foreign currencies are accounted for at the rates prevailing on the date of the transaction. against provision ranging between 0. Income and expenses are translated at the rates prevailing on the date of the transactions.

Depreciation on assets sold during the year is recognized on a pro-rata basis to the profit and loss account till the date of sale. 4.Premium/discount on currency swaps undertaken to hedge FCNR deposits is recognized as interest income/expense and is amortized on a straight-line basis over the underlying swap period. The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. depreciation has been provided using the following estimated useful lives: Asset Owned premises Assets given on operating lease Computer hardware Application software Vehicles EPABX. guarantees. taxes and incidental expenses related to the acquisition and installation of the asset. duties. telephone instruments Mobile phone Locker cabinets/cash safe/strong room door Assets at staff residence All other fixed assets All fixed assets individually costing less than Rs. Contingent liabilities on account of foreign exchange contracts/options. Trading swaps/options are revalued at the balance sheet date with the resulting unrealized gain or loss being recognized in the profit and loss account and correspondingly in other assets or other liabilities respectively.000 are fully depreciated in the year of installation. then depreciation is provided at a higher rate based on management's estimate of the useful life/remaining useful life. Capital work-in-progress includes cost of fixed assets that are not ready for their intended use and also includes advances paid to acquire fixed assets.6 Derivative transactions Derivative transactions comprise of swaps and options which are disclosed as contingent liabilities. 1956 are considered as the minimum rates. The rates of depreciation prescribed in Schedule XIV to the Companies Act. which is recognized on receipt. Dividend is accounted on an accrual basis when the right to receive the dividend is established. Gain/loss on sell down of loans and advances through direct assignment is recognized at the time of sale. is recognized pro-rata over the period of the guarantee.7 Revenue recognition Interest income is recognized on an accrual basis except interest income on non-performing assets. Commission income on deferred payment guarantees. Realized gains on investments under HTM category are recognized in the profit and loss account and subsequently appropriated to capital reserve account in accordance with RBI guidelines. 5. if any.8 Fixed assets and depreciation Fixed assets are carried at cost of acquisition less accumulated depreciation less impairment. Pursuant to this policy. Hedged swaps/options are accounted for on an accrual basis. Losses are recognized in the profit and loss account. All other fee income is recognized upfront on its becoming due. Depreciation (including on assets given on operating lease) is provided on the straight-line method from the date of addition. The swaps/options are segregated as trading or hedge transactions. 4. 4. If the management's estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter. acceptances. Cost includes freight. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable Estimated useful life 20 years 20 years 3 years 5 years 4 years 8 years 2 years 16 years 5 years 10 years 65 . endorsements and other obligations denominated in foreign currencies are disclosed at closing rates of exchange notified by FEDAI.

Through the defined contribution plan the Bank contributes annually a specified sum of 10% of the employee's eligible annual basic salary to LIC. 4. Superannuation Employees of the Bank are entitled to receive retirement benefits under the Bank's Superannuation scheme either under a cash-out option through salary or under a defined contribution plan. After impairment. 1961. There are no other obligations other than the contribution payable to the trust.12 Taxation Income tax expense is the aggregate amount of current tax. although LIC/Metlife administer the scheme and determine the contribution premium required to be paid by the Bank. 4. Provision for the said reward points is then made based on the actuarial valuation report as furnished by the said independent actuary.amount. The actuarial valuation is carried out as per the Projected Unit Credit Method. the estimated future cash flows are discounted to their present value at the weighted average cost of capital. The Bank provides leave encashment benefit (long term). 4.11 Debit/Credit card reward points The Bank estimates the probable redemption of debit and credit card reward points using an actuarial method at balance sheet date by employing an independent actuary. depreciation is provided on the revised carrying amount of the asset over its remaining useful life. Lease payments for assets taken on operating lease are recognized as an expense in the profit and loss account on a straightline basis over the lease term. Rentals received by the Bank are recognized in the profit and loss account on accrual basis. Deferred tax assets and deferred tax liabilities are offset. Liability with regard to gratuity fund is accrued based on actuarial valuation conducted by an independent actuary using the Projected Unit Credit Method as at 31 March each year. deferred tax and fringe benefit tax charge. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. 4. In assessing value in use. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employee's salary and the years of employment with the Bank. the settlement obligations remain with the Bank. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Under this scheme. Superannuation contributions are recognized in the profit and loss account in the period in which they accrue. Current year taxes and fringe benefit tax are determined in accordance with the Income-tax Act. which undertakes to pay the lumpsum and annuity benefit payments pursuant to the scheme.10 Retirement and other employee benefits Provident Fund Retirement benefit in the form of provident fund is a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the fund are due.9 Lease transactions Assets given on operating lease are capitalized at cost. which is a defined benefit scheme based on actuarial valuation as at the balance sheet date conducted by an independent actuary. Gratuity The Bank contributes towards gratuity fund (defined benefit retirement plan) administered jointly by the Life Insurance Corporation of India ('LIC') and Metlife Insurance Company Limited ('Metlife') for eligible employees. Leave Encashment Short term compensated absences are provided for based on estimates. if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Actuarial gains/losses are immediately taken to profit and loss account and are not deferred. The recoverable amount is the greater of the asset's net selling price and value in use. 66 .

the asset and related income are recognized in the period in which the change occurs. prior to the date of the Board of Directors meeting in which options are granted / shares are issued. Options are granted at an exercise price. The excess of such fair market price over the exercise price of the options as at the grant date is recognized as a deferred compensation cost and amortized on a straight-line basis over the vesting period of such options. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. which is equal to/less than the fair market price of the underlying equity shares. The fair market price is the latest available closing price. The impact of changes in the deferred tax assets and liabilities is recognized in the profit and loss account. or a present obligation arising from a past event which is not recognized as it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. However. If the shares are listed on more than one stock exchange. 4. 4. The Bank follows the intrinsic value method to account for its stock based employee compensation plans as per the Guidance Note on 'Accounting for Employee Share-based Payments' issued by the ICAI. balances with other banks and money at call and short notice. 4. 67 .13 Share Issue Expenses Share issue expenses are adjusted from share premium account. no provision or disclosure is made.Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. A disclosure of contingent liability is made when there is: • • a possible obligation arising from a past event. Deferred tax assets are recognized and reassessed at each reporting date. on the stock exchange on which the shares of the Bank are listed.15 Cash and Cash Equivalents Cash and cash equivalents include cash on hand and in ATM. Contingent assets are not recognized in the financial statements. Notified accounting standard by Companies (Accounting Standards) Rules. Earnings per Share. in respect of which a reliable estimate can be made. the existence of which will be confirmed by occurrence or non occurrence of one or more uncertain future events not within the control of the Bank. The Scheme is in accordance with the Securities and Exchange Board of India (SEBI) (Employees Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. 1999. 4. balances with Reserve Bank of India. 2006.14 Earnings per share The Bank reports basic and diluted earnings per share in accordance with AS 20.16 Employee stock option scheme The 2001 Employee Stock Option Scheme (the 'Scheme') provides for grant of stock options on equity shares of the Bank to employees and Directors of the Bank. Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding for the year. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. contingent liabilities and contingent assets A provision is recognized when the Bank has a present obligation as a result of past event where it is probable that an outflow of resources will be required to settle the obligation. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote. contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise.17 Provisions. then the stock exchange where there is highest trading volume on the said date is considered. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. 4. based upon management's judgement as to whether realization is considered as reasonably certain. Diluted earnings per share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at year end.

095.787.25 0.35 1.64) (71.905.49 31 March 2008 8.50 107.56% 13.52 3.52 (137.46 6.64 109.822.Current tax for the year . in crores) 31 March 2009 Capital adequacy Tier I Tier II Total capital Total risk weighted assets and contingents Capital ratios Tier I Tier II CRAR Amount of Subordinated Debt raised as Tier-II capital (as per details given below) 10.69 21.Deferred tax for the year Provision for fringe benefit tax Provision for wealth tax Provision for non performing advances & investments.89 31 March 2009 31 March 2008 5.26% 4.66 9.09) 11.39) 9.80 (0.55 1.59 (159.84 0. RBI has directed banks with overseas branches to migrate to the revised framework for capital computation (under Basel II) with effect from 31 March 2008.75 11.2 In terms of its guidelines for implementation of the new capital adequacy framework issued on 27 April 2007.21 65.082.73% Rs.05 575.46 0.98 4.17% 3. 1. previous year as per Basel I) is set out below: (Rs.32 153.027.54 (0. 90% and 80% of the capital requirement under Basel I over the years March 2008.27 86.28 732.69 105.22 322.1 Statutory disclosures as per RBI 5. (including bad debts written off and write backs) Provision for restructured assets Provision for loss in present value for agricultural assets Provision towards standard assets Provision for depreciation in value of investments Provision for securitized assets Contingent provision against derivatives Provision for country risk Total 1.1.52 725. calculated as per RBI guidelines (Basel II requirement being higher for current year.69% 10.162.5 Notes to Accounts 5. in crores) For the year ended Provision for income tax .864.97) 0.1 'Provisions and contingencies' recognized in the profit and loss account include: (Rs. 2009 and 2010 respectively.700 crores NIL 68 .719.154. The capital adequacy ratio of the Bank.66 15.1.41 969.43% 13. The minimum capital to be maintained by banks under the Revised Framework is subject to a prudential floor of 100%.97 3.909. The migration is proposed in a phased manner over a three-year period during which banks are required to compute their capital requirements in terms of both Basel I and Basel II.11) 71.

1. 1949 * Net Customer assets include advances and credit substitutes ** Productivity ratios are based on average employee numbers for the year 69 .00 crores.10 crores.02 lacs 0.95% Amount Rs.80% 8.50 crores.500.44 Rs.1.3 The Bank has not raised any hybrid capital during the year ended 31 March 2009.57 1. 112.60 crores Rs.30 2.00 crores Rs. 11.35 31 March 2008 % 8.36 # Working funds represent average of total assets as reported to RBI in Form X under Section 27 of the Banking Regulation Act. 100. 240. 8.10 crores During the year ended 31 March 2008.24 Rs.4 The key business ratios and other information is set out below: As at Interest income as a percentage to working funds # Non-interest income as a percentage to working funds Operating profit as a percentage to working funds Return on assets (based on average working funds) Business (deposits less inter bank deposits plus advances) per employee** Profit per employee** Net non performing assets as a percentage of net customer assets * 31 March 2009 % 8. the details of which are set out below: Date of allotment 7 November 2008 28 March 2009 Period 120 months 120 months Coupon 11.80% 9. During the year ended 31 March 2008. During the year ended 31 March 2009. 200.700. 10.75% 9.17 crores Rs. the Bank raised subordinated debt of Rs. 66.08 2.125% Amount (USD 60 million) Rs.00 crores Rs. the details of which are set out below: Type of Capital Upper Tier II Date of allotment 28 June 2007 Period 180 months Coupon 7. the Bank redeemed subordinated debt of Rs. 33. the details of which are set out below: Date of maturity 28 April 2007 4 June 2007 27 June 2007 Period 85 months 66 months 63 months Coupon 11.72 crores 5.59 2. 10.00 crores The Bank has not raised any subordinated debt during the previous year ended 31 March 2008.00 crores Rs.50 crores 5. the Bank raised hybrid capital in the form of Upper Tier II bonds qualifying as Tier II capital. 33.00 crores Rs.95 1.40% Amount Rs.1. the Bank redeemed subordinated debt of Rs. the details of which are set out below: Date of maturity 20 June 2008 21 September 2008 Period 69 months 69 months Coupon 8.30% Amount Rs.75% 9.07 2. 33. 245.During the year ended 31 March 2009. 1.39 lacs 0.

77 31 March 2008 Gross 418.34 248.45) 246.00) 570. in crores) 31 March 2009 Provision towards Standard Assets (includes Rs.29 202. 5.62 31 March 2009 246.04.37 crores representing unrealized interest and other charges on loans qualifying under the Agricultural Debt Waiver and Debt Relief Scheme.25 31 March 2008 1.21 (308.32 Based on the guidelines contained in Reserve Bank of India circular DBOD.33 135.30 (123.32 (366. 6.048/2008-09 dated 22 September 2008.13 31 March 2008 Net 266.5 Asset Quality i) Net non-performing assets to net advances is set out below: 31 March 2009 % 0.7 Provision on Standard Assets (Rs.29 Opening balance at the beginning of the year Additions during the year Reductions during the year Closing balance at the end of the year iv) Movement in provisions for non performing assets (including non-performing investments but excluding provisions for standard assets) is set out below: (Rs.61 892.48/21.27) 494.42 Net non performing assets as a percentage of net advances ii) Movement in gross non-performing assets (including non-performing investments) is set out below: (Rs.No. in crores) 31 March 2009 Net 248. in crores) 31 March 2009 Gross 494. previous year Rs.82) 248.00 crores of standard provision on derivative exposures.62 (1.1.43 (154.BP.5. has been utilized out of the opening balance of floating provision. 1.6 Movement in floating provision is set out below: (Rs.78 (153.64 31 March 2008 152.67 384. 2008 of the Government of India. an amount of Rs.87 4.1.32 690. Nil) 464. in crores) Opening balance at the beginning of the year Provisions made during the year Write-offs/write back of excess provisions Closing balance at the end of the year 5.BC.75 2.62 (489. in crores) For the year ended Opening balance at the beginning of the year Provisions made during the year Draw down made during the year Closing balance at the end of the year 31 March 2009 4.42 31 March 2008 358.40 31 March 2008 % 0.46) 327.1.46) 897.37) 3.92 70 .61 Opening balance at the beginning of the year Additions during the year Reductions during the year Closing balance at the end of the year iii) Movement in net non-performing assets (including non-performing investments) is set out below: (Rs.

Commercial real estate Indirect Exposure Fund based and non-fund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs) 11.74 68. Advances against shares/bonds/debentures or other securities or on clean basis to individuals for investment in shares (including IPOs/ESOPs).202.04 - - 1.55 5.190.100.680.84 138.914.61 33.66 17. convertible debentures.096.49 5.43 613.12 64.56 95.76 (74.63 4.90 5.779.05 Total Exposure to Real Estate Sector B.090. convertible bonds.20 182.20 45.70 6.70) 92.059.17 31 March 2008 33.24 (10.74 788.508.999.5.00 31 March 2008 85.80 19.of which housing loans eligible for inclusion in priority sector advances (ii) Commercial real estate (iii) Investments in Mortgage Backed Securities (MBS) and other securitized exposures a.97 498.66 64. Exposure to Capital Market 1.1. in crores) 31 March 2009 1) Gross value of Investments a) In India b) Outside India 2) Provision for Depreciation/Non-Performing Investments a) In India b) Outside India 3) Net value of Investments a) In India b) Outside India ii) Movement of provisions held towards depreciation on investments: (Rs. 1) 31 March 2009 31 March 2008 2) Exposure to Real Estate Sector Direct Exposure (i) Residential mortgages .541. in crores) As at A.9 A summary of lending to sensitive sectors is set out below: (Rs.38 15. Residential b. and units of equity-oriented mutual funds 822. convertible debentures and units of equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt 2. convertible bonds.27 45.192. Direct investments made in equity shares.45 7.1.09 71 .74 1.57 5.96) 200.48 857.53 608.036.8 Details of Investments are set out below: i) Value of Investments: (Rs. in crores) Opening balance Add: Provisions made during the year Less: Write offs/write back of excess provisions during the year Closing balance 31 March 2009 92.

3. 0.01 64 382. Secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and marketmakers 6.78 crores.1.02 12. Advances for any other purposes to the extent secured by the collateral security of shares or convertible bonds or convertible debentures or units of equity-oriented mutual funds i. where primary security other than shares/convertible bonds/convertible debentures/units of equity-oriented mutual funds does not fully cover the advances 5.23 15.58 407* 450.331. have been downgraded to sub-standard assets upon restructuring.31 - - 45.03 1. Bridge loans to companies against expected equity flows/issues 8.99 12. 4 162. All exposures to Venture Capital Funds (both registered and unregistered) Total exposure to Capital Market (Total of 1 to 10) 189. which were restructured.02 4 162.850.60 10. of Borrowers Amount Outstanding Sacrifice (diminution in the fair value) iii) Doubtful advances restructured No.03 195.e.10 Details of loan assets subjected to restructuring during the year ended 31 March 2009 and 31 March 2008 are given below: (Rs. Loans sanctioned to corporates against the security of shares/bonds/debentures or other securities or on clean basis for meeting promoter's contribution to the equity of new companies in anticipation of raising resources 7.68 5. of Borrowers Amount Outstanding Sacrifice (diminution in the fair value) ii) Sub-Standard advances restructured No. Underwriting commitments taken up in respect of primary issue of shares or convertible bonds or convertible debentures or units of equity-oriented mutual funds 9. The 13 standard assets under personal loans.60 Others 407* 450.58 12.05 246.58 31 March 2009 SME Debt Restructuring 64 382.58 12. 73. Advances for any other purposes where shares or convertible bonds or convertible debentures or units of equity-oriented mutual funds are taken as primary security 4.43 2. of Borrowers Amount Outstanding Sacrifice (diminution in the fair value) * Includes 385 retail agricultural loans aggregating to Rs. Financing to stock brokers for margin trading 10.27 955.41 crores and 13 personal loans aggregating to Rs. in crores) Particulars CDR Mechanism i) Standard advances restructured No.00 248.53 6.06 831.99 72 .01 10. of Borrowers Amount Outstanding Sacrifice (diminution in the fair value) Total No.

1.1. in crores) Sr. 2.03 4 253. 5. No. proposals approved and implemented as on 31 March 2009 and thus became eligible for special regulatory treatment and classified as standard assets as on the date of the balance sheet Of (1).92 31 March 2008 SME Debt Restructuring 16 51.17.11 As at 31 March 2009. of Borrowers Amount Outstanding Sacrifice (diminution in the fair value) ii) Sub-Standard advances restructured No. 451. proposals approved and implemented as on 31 March 2009 but could not be upgraded to the standard category Of (1).92 17 58. (Rs.95 crores.36 crores towards interest sacrifice and funded interest for the assets restructured during the year ended 31 March 2008. in respect of accounts which were standard as on 1 September 2008 Of (1).40 451. - - 73 . in crores) Particulars CDR Mechanism i) Standard advances restructured No. 5. proposals under process / implementation which turned NPA as on 31 March 2009 but are expected to be classified as standard assets on full implementation of the package Number 493 Amount 1. of Borrowers Amount Outstanding Sacrifice (diminution in the fair value)** ** 4 253.02 4 10.(Rs. of Borrowers Amount Outstanding Sacrifice (diminution in the fair value) Total No. of Borrowers Amount Outstanding Sacrifice (diminution in the fair value) iii) Doubtful advances restructured No. proposals under process / implementation which were standard as on 31 March 2009 Of (1).42 1 6.42 Though the Bank was not holding any provision for diminution in the fair value of assets restructured as on 31 March 2008.382. 4. there were 43 applications for restructuring under process aggregating to Rs.95 3.99 Others 4 10.35 450 43 930. the Bank had made provision aggregating to Rs. Particulars Applications received up to 31 March 2009 for restructuring.

54 7. (6) and (7) above are not mutually exclusive.96 74 .63 - (7) 99.088. Issuer Total Amount Extent of private placement Extent of "below investment grade" securities (5) 21.559.96 8.12 Details of Non-SLR investment portfolio are set out below: i) Issuer composition as at 31 March 2009 of non-SLR investments: (Rs.05 (6) 3.007.00 1.033.61 4.17 52.66) 7.60 939. (6) and (7) above are not mutually exclusive. (2) Public Sector Units Financial Institutions Banks Private Corporates Subsidiaries/ Joint Ventures Others Provision held towards depreciation/nonperforming investments Total (3) 2.15 (6) 99.547.95 97. in crores) 31 March 2009 Opening balance Additions during the year since 1 April Reductions during the above period Closing balance Total provisions held 8.96 99. (5).08 730. in crores) No.825.16) 13. vii.088.486.5.84 97.069.87 5. (5).31 530.521.10 97. ii.34 Amounts reported under columns (4).91 (202.26 1.365.50 10.10 3.441.52 2.60 1.111.46 2.29 31 March 2008 8.526.60 1. vi.55 1.78 - (7) 1.532. iii.07 1. iv.773.49 14.64 6.75 3.15 (4) 1.99 1. vi.29 7.00 568. ii.69 439.00 568.56 2.99 (101.12 (0.15 (101.652.44 913.50 857. ii) Non-performing non SLR investments is set out below: (Rs. Issuer Total Amount Extent of private placement Extent of "below investment grade" securities (5) 21.93 4.162.729.16 38.983.54 3.177.84 16.61 3.854. v.59 7.00 10.27 9.91 (4) 948. (2) Public Sector Units Financial Institutions Banks Private Corporates Subsidiaries/ Joint Ventures Others Provision held towards depreciation/nonperforming investments Total (3) 2. Issuer composition as at 31 March 2008 of non-SLR investments: (Rs.607.23) 8.92) 18.31 333. in crores) No.54 38.79 Amounts reported under columns (4).700.738.54 Extent of "unrated" securities Extent of "unlisted" securities (1) i.79 1.40 Extent of "unrated" securities Extent of "unlisted" securities (1) i.99 613.65 38. vii. v.37 570.45 4.00 309. iv.148.36 625. iii.249.1.00 491.

75 (Rs.201.627. in crores) 31 March 2009 Outstanding credit enhancement (cash collateral) Outstanding liquidity facility Outstanding servicing liability Outstanding investment in PTCs 31 March 2008 13.16 Details of securitization transactions undertaken by the Bank in the year are as follows: The information on securitization activity of the Bank as an originator as on 31 March 2009 and 31 March 2008 is given below: (Rs. in crores) 31 March 2009 Number of loan accounts securitized Book value of loan assets securitized Sale consideration received for the securitized assets Net gain / loss over net book value Net gain / loss recognized in profit and loss account 16 5.5.84 4. in crores) 31 March 2009 Non .95 3. (a) Number of accounts purchased during the year (b) Aggregate outstanding 2. in crores) 31 March 2009 Number of accounts Book Value of loan asset securitized Aggregate value (net of provisions) of accounts sold Aggregate consideration Additional consideration realized in respect of accounts transferred in earlier years Aggregate gain/loss over net book value 31 March 2008 - 5.79 7.68 5.Performing Financial Assets Sold 1.09 3. Aggregate outstanding 3.63 Maximum outstanding during the year 596.209.10 408.637.14 Details of financial assets sold to Securitization/Reconstruction companies for Asset Reconstruction: 5.66 0.71 45.1.13 Details of securities sold/ purchased during the year ended 31 March 2009 & 31 March 2008 under repos/ reverse repos (excluding LAF transactions): Year ended 31 March 2009 Minimum outstanding during the year Securities sold under repos Securities purchased under reverse repos Year ended 31 March 2008 Minimum outstanding during the year Securities sold under repos Securities purchased under reverse repos Maximum outstanding during the year 111.15 Details of Non-Performing Financial Assets Purchased/Sold: (Rs. Aggregate consideration received 31 March 2008 (Rs.54 0. in crores) As at 31 March 2009 (Rs.91 773.84 75 .05 5.42 10. (a) Of these.78 (Rs.Performing Financial Assets Purchased 1. number of accounts restructured during the year (b) Aggregate outstanding Non .80 Daily Average outstanding during the year 127.1.1.73 31 March 2008 19 3.94 Daily Average outstanding during the year 42. Number of accounts sold during the year 2.37 7. in crores) As at 31 March 2008 503.1.

66% 0.20% 4.79 2.00 HDFC Ltd.040.785. The details of the case are set out below: (Rs.00 Tata Steel Ltd.79 2.093.63% 2. and HDFC Ltd.010.620.690.79% 28.23 4.340.442.38 4.36 During the year.00 76 . where single borrower limit was exceeded upto an additional exposure of 5% with the approval of the Board of Directors.51% Exposure Ceiling as on 31 March 2009 Exposure as on 31 March 2009 July 2008 Aug 2008 Sep 2008 4.00 2.961.08 During the year ended 31 March 2008.786.000. the Bank's credit exposures to single borrower and group borrowers were within the prudential exposure limits prescribed by RBI except in 2 cases viz.40 } 5.79 2. Nov 2008 2.000. UTI AMC Ltd.18 Limit Sanctioned % of excess limit sanctioned over original ceiling 4.75 1.11 } 4.79 Exposure as on 31 March 2009 1.79 1. UTI Asset Management Company Ltd.010.71 Exposure Ceiling as on 31 March 2008 1.79 1.300.568.300.78 1. the Bank's credit exposure to group borrowers was within the prudential exposure limits prescribed by RBI except in 1 case..17 During the year.18 983.95 4.274.984.762.11 4. in crores) Name of the Borrower Original Exposure Ceiling 983.1. May 2008 July 2008 to Oct 2008 Nov 2008 to Feb 2009 2.031.79 1.79% Exposure Ceiling as on 31 March 2009 2. 1. where group borrower limit was exceeded upto an additional exposure of 5% with the approval of the Board of Directors..305.000.040.762.21 1.762. the Bank's credit exposure to single borrower was within the prudential exposure limits prescribed by RBI except in 3 cases. UTI Asset Management Company Ltd. The details of such cases are set out below: (Rs.690.00 14. The details of such cases are set out below: (Rs.785. in crores) Name of the Borrower Period Original Exposure Ceiling 1.11 Limit Sanctioned % of excess limit sanctioned over original ceiling 4. in crores) Period Original Exposure Ceiling 4.000.94 1.00 2.75 Exposure as on 31 March 2008 1.11% 2.040.11 4.5.79 Limit Sanctioned % of excess limit sanctioned over original ceiling 28.040.00 HDFC Ltd. where single borrower limit was exceeded upto an additional exposure of 5% with the approval of the Board of Directors.33 1.

301.55 3.20 3.240.102.71 4.397.376.75 Over 3 months and upto 6 months 10.093.088. in crores) Risk Category Exposure (Net) as at 31 March 2009 Insignificant Low Moderate High Very High Restricted Off-Credit Total 224.067.200.02 172.5.330.386.64 0.928.630.78 450.11 745.48 100.34 Over 6 months and upto 1 year 17.22 59.705.60 49.809.819.85 Over 3 months and upto 6 months 17.96 3.53 1. Maturity profile of foreign currency assets and liabilities is excluding forward contracts.52 7.716.457.64 7.1.891.77 118.588.085.27 3.82 5.35 .41 7.598.374.41 Over 1 year and upto 3 years Over 3 years and upto 5 years 414.44 601.64 21.26 4.724.750.11 16.44 544.45 2.112.35 430.03 2.214.624.93 87.176.90 5.88 1.26 966.72 2.90 Exposure (Net) as at 31 March 2008 1.913.30 544.24 1.10.543.04 Investments 564.821.598.90 3.884.06 Advances 403.56 2.91 1.47 4.954.79 160.19 6.98 3.43 1.105.692.91 2.834.74 1.812.218.36 4.984.11 Borrowings Foreign Currency Assets Foreign Currency Liabilities 5.717.39 331.79 Over 3 years and upto 5 years 790.92 7.157.36 4.55 5.76 27.709.61 403.363.56 11.556.48 (Rs.98 5.904.787.486.23 2.086.00 1.198.14 1.14 8.01 601.661.626.562.46 2.27 65.944.44 Classification of assets and liabilities under the different maturity buckets is based on the same estimates and assumptions as used by the Bank for compiling the return submitted to the RBI.98 14.89 26.617.90 3.30 3.18 70. 77 .845.29 452.53 3.518.38 2.29 Provision Held as at 31 March 2009 3.990.19 763.289.16 3.748.11 4.18 Details of Risk Categorywise Country Exposure: (Rs.167.68 4.14 1.28 - 1.74 580.943.884.15 31.19 7.745.11 35.81 437.34 1.254.51 46.54 3.82 (Rs.1.78 1.92 1.81 1.66 713.77 7.37 550.35 665.99 Year ended 31 March 2008 1 day 2 days to 8 days to 15 days to 7 days 14 days 28 days 29 days and upto 3 months 9.07 712.28 5.09 2.04 2.698.21 12.99 28.89 4.79 29.039.36 18.90 46.205.69 2.00 11.368.13 1.775.37 Provision Held as at 31 March 2008 3.564.165.915.708.185.20 1.53 81.284.28 117.228.14 33.29 1.84 86.11 448.917.44 28.269.19 A maturity pattern of certain items of assets and liabilities at 31 March 2009 & 31 March 2008 is set out below: Year ended 31 March 2009 1 day 2 days to 8 days to 15 days to 7 days 14 days 28 days 29 days and upto 3 months Deposits 1.578.44 7.63 - 3.63 Over 1 year and upto 3 years 16. in crores) Over 5 years Total Deposits Advances Borrowings Foreign Currency Assets Foreign Currency Liabilities 946.963.81 2.741.91 2.60 492.579.81 1.48 23.186.58 6.22 727. in crores) Over 5 years Total 316.189.974.82 Investments 826.10 5.453.03 1.74 1.414.92 11.755.44 4.22 19.47 975.31 Over 6 months and upto 1 year 19.

54 (1. Forward Rate Agreement (FRA) and Cross Currency Swaps (CCS) outstanding at 31 March 2009 is set out below: (Rs.65 78. 2 4 783 794 115 106 77 68 18 27 5 1.075. in crores) Nature Hedging Hedging Hedging Hedging Trading Trading Trading Trading Trading Trading Trading Trading Trading Trading Trading Nos.08% 79.10 3.Interest Rate Swaps / FRAs .00 29.980. No.60 789.29 148.096.80 240.00 66.400 1.00 208.00 307.Currency Swaps ** Total collaterals taken from counterparties having outstanding derivative contracts The nature and terms of the IRS as on 31 March 2009 are set out below: (Rs.990.177.72 65.12 29.22 717.24 96.Cross Currency Swaps v) Fair value of the swap book (hedging & trading) .66 2.50 2.26 Benchmark MIBOR MIBOR INBMK LIBOR MIBOR MIBOR MIFOR MIFOR INBMK INBMK LIBOR LIBOR LIBOR LIBOR LIBOR Terms Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed receivable v/s floating payable Receive fixed / Pay floating Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed payable v/s fixed receivable Receive fixed / Pay floating Receive floating / Pay fixed 78 .999 Notional Principal 50.1.290.00 409.231.69 658.00 3. Items i) ii) iii) iv) Notional principal of swap agreements Losses which would be incurred if counterparties failed to fulfill their obligations under the agreements Collateral required by the Bank upon entering into swaps** Concentration of credit risk arising from the swaps Maximum single industry exposure with Banks (previous year with Banks) .Interest Rate Swaps / FRAs .046.34 10.95 492.73% 62.92 The nature and terms of the IRS as on 31 March 2008 are set out below: (Rs. 3 2 5 3 1.00 4.367 Notional Principal 125.520.830.20 Disclosure in respect of Interest Rate Swaps (IRS).69 Benchmark MIBOR INBMK MIBOR MIBOR MIFOR MIFOR INBMK INBMK LIBOR LIBOR LIBOR Terms Fixed payable v/s floating receivable Fixed receivable v/s floating payable Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed receivable v/s floating payable Fixed payable v/s floating receivable Fixed payable v/s fixed receivable 80.50 3.00 121.00 50.20 76.980. in crores) Nature Hedging Hedging Trading Trading Trading Trading Trading Trading Trading Trading Trading Nos.394.918.080.372.73% 33.56 80.00 4.861.84% As at 31 March 2009 80.871.125.10 2. in crores) Sr.50 1.50 2.5.06 72.05 As at 31 March 2008 155.64 16.90) 83.409 162 155 78 69 40 28 3 5 5 3.

92 4. 23 19 1 2 2 5 52 Notional Principal 2.22 587.148.201.274. 49 39 88 Notional Principal 1.354.81 859. in crores) Nature Trading Swaps Trading Swaps Trading Swaps Trading Swaps Trading Swaps Trading Swaps Trading Swaps Trading Swaps Hedging Swaps Nos. 79 .52 811.82 Benchmark LIBOR LIBOR Terms Fixed receivable v/s floating payable Fixed payable v/s floating receivable The nature and terms of the CCS as on 31 March 2009 are set out below: (Rs.00 2.62 60.256.37 1. 22 15 1 33 32 2 1 1 5 112 Notional Principal 1.561.45 2.11 607.The nature and terms of the FRA's as on 31 March 2009 are set out below: (Rs.50 1.334. in crores) Nature Trading Trading Nos. in crores) Nature Trading Swaps Trading Swaps Trading Swaps Trading Swaps Trading Swaps Hedging Swaps Nos.52 177. in crores) Nature Trading Trading Nos.060.46 45.18 60.66 Benchmark LIBOR LIBOR LIBOR / INBMK Principal Only Principal Only Principal Only Terms Fixed payable v/s floating receivable Fixed receivable v/s floating payable Floating receivable v/s floating payable Fixed receivable Fixed payable Fixed payable The nature and terms of the CCS as on 31 March 2008 are set out below: (Rs.16 118.744.722.90 1.51 5.42 Benchmark LIBOR LIBOR LIBOR / INBMK PRINCIPAL ONLY PRINCIPAL ONLY PRINCIPAL ONLY PRINCIPAL ONLY PRINCIPAL ONLY LIBOR Terms Fixed payable v/s floating receivable Fixed receivable v/s floating payable Floating receivable v/s floating payable Fixed receivable Fixed payable Fixed receivable & fixed payable Paying floating Receive floating Fixed payable Agreements with Banks/Financial Institutions and corporates are under approved credit lines.13 36.65 177.18 641.31 Benchmark LIBOR LIBOR Terms Fixed receivable v/s floating payable Fixed payable v/s floating receivable The nature and terms of the FRA's as on 31 March 2008 are set out below: (Rs. 18 18 36 Notional Principal 884.

26 613.December 10 Euro Dollar Futures .21 14.24 18.806.53 4. No.236.44 4.March 09 10 Year Long Gilt Futures .17 18.36 284.21 33.June 09 Euro-BOBL Futures .37 47.June 09 3 Month Euribor Futures .March 09 10 Year Commonwealth Treasury Bond Futures .S.03 55.December 08 Euro-BOBL Futures .December 08 Euro-Schatz Futures .64 As at 31 March 2009 .September 08 Euro-BOBL Futures .S.September 08 Euro Dollar Futures .September 08 Euro-BOBL Futures .December 08 30 Day Fed Fund Futures . Treasury Note Futures .01 24.March 11 Euro Dollar Futures .June 08 Euro-BOBL Futures .30 25.September 10 10 Year Commonwealth Treasury Bond Futures .712.December 08 10 Year Commonwealth Treasury Bond Futures .S.04 404.June 08 2 Year U.September 09 5 Year U.March 09 Euro Dollar Futures .59 2.07 415.March 10 Euro Dollar Futures .March 09 3 Month Euribor Futures .Details of Exchange Traded Interest Rate Derivatives for the year ended 31 March 2009 are set out below: (Rs.September 09 Euro Dollar Futures .March 09 10 Year Long Gilt Futures .December 08 Euro Dollar Futures . i) Particulars Notional principal amount of exchange traded interest rate derivatives undertaken during the year 2 Year U.June 09 80 223.71 91.June 08 Euro Dollar Futures .September 08 Euro-Schatz Futures .December 08 2 Year U.05 458.September 08 3 Month Euribor Futures .S.June 11 Euro Dollar Futures .June 08 10 Year Commonwealth Treasury Bond Futures .27 228.S.01 15.79 5.June 08 5 Year U.32 840.December 09 Euro Dollar Futures .72 43.22 456.June 08 Euro-BOBL Futures .49 53. Treasury Note Futures .June 09 Euro Dollar Futures .90 542. Treasury Notes Futures .07 18. in crores) Sr.05 6.September 08 Euro Dollar Futures .71 14.20 674.70 71.64 5.September 08 3 Year Commonwealth Treasury Bond Futures . Treasury Notes Futures .48 512.26 22.40 2.219.June 09 Euro-Schatz Futures . Treasury Notes Futures .765.March 09 Euro-BOBL Futures .52 38.58 148.74 6.June 10 Euro Dollar Futures .04 4.September 08 30 Day Interbank Cash Rate Futures .66 507.

10 Year JGB Futures - December 08 10 Year JGB Futures - June 08 10 Year JGB Futures - September 08 10 Year U.S. Treasury Note Futures - December 08 10 Year U.S. Treasury Note Futures - June 08 10 Year U.S. Treasury Note Futures - June 09 10 Year U.S. Treasury Note Futures - March 09 10 Year U.S. Treasury Note Futures - September 08

10.31 20.61 30.92 420.98 154.19 177.52 253.60 187.66 28,931.79

ii)

Notional principal amount of exchange traded interest rate derivatives outstanding as on 31 March 2009 Euro Dollar Futures - March 10 Euro Dollar Futures - March 11 Euro Dollar Futures - June 10 Euro Dollar Futures - June 11 Euro Dollar Futures - June 09 Euro Dollar Futures - September 10 Euro Dollar Futures - September 09 Euro Dollar Futures - December 10 Euro Dollar Futures - December 09 10.14 5.07 15.22 5.07 81.15 15.22 65.94 15.22 30.42 243.45

iii)

Notional principal amount of exchange traded interest rate derivatives outstanding as on 31 March 2009 and “not highly effective” Euro Dollar Futures - March 10 Euro Dollar Futures - March 11 Euro Dollar Futures - June 10 Euro Dollar Futures - June 11 Euro Dollar Futures - June 09 Euro Dollar Futures - September 10 Euro Dollar Futures - September 09 Euro Dollar Futures - December 10 Euro Dollar Futures - December 09 10.14 5.07 15.22 5.07 81.15 15.22 65.94 15.22 30.42 243.45

iv)

Mark-to-market value of exchange traded interest rate derivatives outstanding as on 31 March 2009 and “not highly effective” Euro Dollar Futures - March 10 Euro Dollar Futures - March 11 Euro Dollar Futures - June 10 Euro Dollar Futures - June 11 Euro Dollar Futures - June 09 Euro Dollar Futures - September 10 Euro Dollar Futures - September 09 Euro Dollar Futures - December 10 Euro Dollar Futures - December 09 (0.05) 0.04 (0.08) 0.03 (0.11) 0.10 (0.34) 0.10 (0.15) (0.46) 81

Details of Exchange Traded Interest Rate Derivatives for the year ended 31 March 2008 are set out below: (Rs. in crores) Sr. No. i) Particulars Notional principal amount of exchange traded interest rate derivatives undertaken during the year a) 90 Day Euro Futures - March 09 b) 90 Day Euro Futures - June 08 c) 90 Day Euro Futures - June 09 d) 90 Day Euro Futures - September 08 e) 90 Day Euro Futures - September 09 f) 90 Day Euro Futures - December 08 g) 3MO Euro EURIBOR - March 08 h) 3MO Euro EURIBOR - September 08 i) 30 Day InterBank - February 08 j) JPN 10Y Bond (TSE) - March 08 k) EURO-BUND Futures - March 08 l) EURO-BUND Futures - June 08 m) US 10 years Note - March 08 n) US 10 years Note - June 08 o) AUST 10Y Bond Futures - March 08 60.18 88.26 40.12 216.65 40.12 196.59 1,015.00 1,015.00 770.65 8.07 822.15 1,382.94 60.18 67.40 22.02 5,805.33 ii) Notional principal amount of exchange traded interest rate derivatives outstanding as on 31 March 2008 a) 90 Day Euro Futures - March 09 b) 90 Day Euro Futures - June 08 c) 90 Day Euro Futures - June 09 d) 90 Day Euro Futures - September 08 e) 90 Day Euro Futures - September 09 f) 90 Day Euro Futures - December 08 20.06 88.26 40.12 216.65 40.12 196.59 601.80 iii) Notional principal amount of exchange traded interest rate derivatives outstanding as on 31 March 2008 and “not highly effective” a) 90 Day Euro Futures - March 09 b) 90 Day Euro Futures - June 08 c) 90 Day Euro Futures - June 09 d) 90 Day Euro Futures - September 08 e) 90 Day Euro Futures - September 09 f) 90 Day Euro Futures - December 08 20.06 88.26 40.12 216.65 40.12 196.59 601.80 iv) Mark-to-market value of exchange traded interest rate derivatives outstanding as on 31 March 2008 and “not highly effective” a) 90 Day Euro Futures - March 09 b) 90 Day Euro Futures - June 08 c) 90 Day Euro Futures - June 09 d) 90 Day Euro Futures - September 08 e) 90 Day Euro Futures - September 09 f) 90 Day Euro Futures - December 08 (0.02) (0.04) (0.05) (0.05) (0.06) (0.02) (0.24) 82 As at 31 March 2008

The Bank undertakes derivative transactions for proprietary trading/market making, hedging own balance sheet and for offering to customers, who use them for hedging their risks within the prevalent regulations. Proprietary trading covers Interest Rate Futures and Rupee Interest Rate Swaps under different benchmarks viz. MIBOR, MIFOR and INBMK and USD/INR options. These transactions expose the Bank to various risks, primarily credit, market and operational risk. The Bank has adopted the following mechanism for managing risk arising out of the derivative transactions. In terms of the structure, the derivative transactions are originated by Treasury Front Office, which ensures compliance with the trade origination requirements as per Bank's policy and RBI guidelines. Market Risk Group within the Bank's Risk Department independently identifies, measures and monitors market risk associated with derivative transactions, and appraises the Asset Liability Management Committee (ALCO) and the Risk Management Committee of the Board (RMC) on the compliance with the risk limits. Treasury Operations undertakes activities such as confirmation, settlement, ISDA documentation, accounting and other MIS reporting. The derivative transactions are governed by the Derivative Policy, Hedging Policy and the Suitability and Appropriateness Policy of the Bank as well as by the extant RBI guidelines. The Bank has also put in place a detailed process flow for customer derivative transactions for effective management of operational risk. The credit risk in respect of customer derivative transactions is sought to be mitigated through a laid down policy on sanction of Loan Equivalent Risk (LER) limits, monitoring mechanism for LER limits and trigger events for escalation/margin calls/termination. Various risk limits are set up and actual exposures are monitored vis-à-vis the limits. These limits are set up taking in to account market volatility, business strategy and management experience. Risk limits are in place for risk parameters viz. PV01, VaR, stop loss, Delta, Gamma and Vega. Actual positions are monitored against these limits on a daily basis and breaches, if any, are reported promptly. Risk assessment of the portfolio is undertaken periodically. The Bank ensures that the Gross PV01 (Price value of a basis point) position arising out of all non option rupee derivative contracts are within the 0.25% of net worth of the Bank as on balance sheet date. Hedging transactions are undertaken by the Bank to protect the variability in the fair value or the cash flow of the underlying balance sheet item. These deals are accounted on an accrual basis. These transactions are subjected to hedge effectiveness test and in case any transaction fails such a test, the same is redesignated as a trading deal with the prior approval of the competent authority and appropriate accounting treatment is followed. 5.1.21 Disclosure on risk exposure in Derivatives (Rs. in crores) As at 31 March 2009 Currency Derivatives Interest rate Derivatives CCS Options

Sr. No. 1

Particulars

Derivatives (Notional Principal Amount) a) For hedging b) For trading Marked to Market Positions# a) Asset (+) b) Liability (-) Credit Exposure* Likely impact of one percentage change in interest rate (100*PV01) (as at 31 March 2009) a) on hedging derivatives b) on trading derivatives

811.52 4,750.14

8,462.08

357.12 74,258.88

2

24.30 756.85

88.68 583.35

8.56 2,521.54

3 4

1.49 0.84

-

35.49 9.59

83

116.19 16. 84 .96 49.109.57 3. 3.26 - 41.52 150.1.59 crores) and Rs.73 crores) respectively.77 (4.15 3.78 3. 31.21 54.57 2 21.93 crores (previous year Rs.61 crores (previous year Rs. 36.99 444. No.03 16.06 3.79 18.47 5 0.22 No penalty/ strictures have been imposed on the Bank during the year by the Reserve Bank of India.92 4.24 592. The net overnight open position at 31 March 2009 is Rs.27) 1.90 # Only on Trading derivatives and represents net position * Includes accrued interest (Rs.36 crores (previous year Rs.571.080.71 crores) 5.00 - 33.50 16.724.45 - 30.54 crores).100.92 # Only on trading derivatives and represents net position * Includes accrued interest The notional principal amount of forex contracts classified as hedging and funding outstanding at 31 March 2009 amounted to Rs.5 Maximum and Minimum of 100*PV01 observed during the year a) on hedging I) Minimum II) Maximum b) on Trading I) Minimum II) Maximum 0.09 0. in crores) As at 31 March 2008 Currency Derivatives Interest rate Derivatives CCS Options Sr.350. 1 Particulars Derivatives (Notional Principal Amount) a) For hedging b) For trading Marked to Market Positions# a) Asset (+) b) Liability (-) Credit Exposure* Likely impact of one percentage change in interest rate (100*PV01) (as at 31 March 2008) a) on hedging derivatives b) on trading derivatives Maximum and Minimum of 100*PV01 observed during the year a) on hedging I) Minimum II) Maximum b) on Trading I) Minimum II) Maximum 641.08 0.15 1. 2.10 624. 2.09 0.907.39 3 4 2.498.89 crores (previous year Rs.55 1.587. 1. 77. The notional principal amount of forex contracts classified as trading outstanding at 31 March 2009 amounted to Rs.454.05 2.

681 52 5. 31 March 2009 1.1.1. of complaints received during the year No.5. the Bank approved an ESOP scheme for additional 10.2. c.000 equity shares to eligible employees.31 10. 85 . 4.2.000 options respectively.24 36.824. the Bank has appropriated Rs. of unimplemented awards at the end of the year 2 2 31 March 2008 9 9 - 5. pursuant to the approval of the shareholders at the Extraordinary General Meeting.24 Disclosure of Awards passed by the Banking Ombudsman 31 March 2009 a.26 Letter of Comfort The Bank has not issued any Letter of Comfort (LoC) on behalf of its subsidiaries.) Dilution of equity is on account of 2.815. Eligible employees are granted an option to purchase shares subject to vesting conditions.355 stock options (each option representing entitlement to one equity share of the Bank) to its employees and the Chairman & CEO.272 3.000.03 33. b.87 0.84 crores) to Capital Reserve. the Bank granted 2.90 34.) Diluted EPS (Rs. 5. the Bank is authorized to issue upto 13.1.720 1. d. pursuant to the approval of the shareholders at Annual General Meeting.2 5.31 0.000.21 32. d.986.25 Draw Down from Reserves The Bank has not undertaken any draw down of reserves during the year. No.2 5.3 Employee Stock Options Scheme ('the Scheme') In February 2001. of shares (in crores) Basic EPS (Rs.388. in crores) Basic weighted average no. in June 2004.40 per option. Earnings Per Share ('EPS') The details of EPS computation is set out below: As at Basic and Diluted earnings for the year (Net profit after tax) (Rs.616. The options vest in a graded manner over 3 years. No.) Nominal value of shares (Rs. These options can be exercised at a price of Rs. of shares (in crores) Add: Equity shares for no consideration arising on grant of stock options under ESOP (in crores) Diluted weighted average no.36 35. the Bank approved an Employee Stock Option Scheme.071. b.371). of awards implemented during the year No. Further.23 Disclosure of Customer Complaints 31 March 2009 a. Under the Scheme. being the gain on sale of HTM investments in accordance with RBI guidelines.000. 26. 146.519 stock options (previous year 8. of complaints redressed during the year No.61 50. of complaints pending at the end of the year 52 3.27 10.970. On 21 April 2008.677. c.1. of unimplemented awards at the beginning of the year No. 26.00 31 March 2008 1. The options can be exercised within 3 years from the date of the vesting. June 2006 and June 2008.2.000 and 7.11 50. 5. of awards passed by the Banking Ombudsman during the year No.345 options have been granted under the Scheme till the previous year ended 31 March 2008.1 Other disclosures During the year.15 31.72 crores (previous year Rs.800. of complaints pending at the beginning of the year No.254 70 31 March 2008 13 1.00 5.

The Bank recorded a compensation cost of Rs.794.794.268 2.355 (322.10 to 824. 1.677.95 1. Stock option activity under the Scheme for the year ended 31 March 2009 is set out below: Options outstanding Range of exercise prices (Rs. based on the excess of the quoted market price of the underlying equity shares as of the date of the grant over the exercise price.295. 709.06 31 March 2008 1.449) 13.56 Weighted average remaining contractual life (Years) 3.974 5. in crores) 86 1.39 crores on options granted during the year ended 31 March 2002.40 232.86 Outstanding at the beginning of the year Granted during the year Forfeited during the year Expired during the year Exercised during the year Outstanding at the end of the year Exercisable at the end of the year 12.805) (395) (1.19 3. Rs.90 39. in crores) Less: Stock based employee compensation expense determined under fair value based method (proforma) (Rs.14 468.90 39.77 to 824.088 39.30) 1.00 468.77 to 468.815.910 6.90 824.62 299.77 to 468.21 crores on options granted during the year ended 31 March 2005.729.87 320.90 39.36 (86.) Weighted average exercise price (Rs. in crores) Add: Stock based employee compensation expense included in net income (Rs.20 The weighted average share price in respect of options exercised during the year was Rs. The compensation cost is amortized over the vesting period.90 The weighted average share price in respect of options exercised during the year was Rs. 24.99 crores on options granted during the year ended 31 March 2004.616.40 367.10 39.77 to 468.353) 12.) Weighted average exercise price (Rs.071.77 to 468.268 2. 765.) 250.55 824.90 398.852.77 29.034 29.20 (71.082.68 to 468.95 459.249) (1. Rs.380) (2. 1.340 (820.57 2.63 Fair Value Methodology Applying the fair value based method in Guidance Note on 'Accounting for Employee Share-based Payments' the impact on reported net profit and EPS would be follows: 31 March 2009 Net Profit (as reported) (Rs. in crores) Net Profit (Proforma) (Rs.90 39.57 2.The Bank has not recorded any compensation cost on options granted during the current year ended 31 March 2009 and the previous year ended 31 March 2008.76 97.03 0.77 to 824.) Weighted average remaining contractual life (Years) 3.68 to 319.55 250.36 .54 Stock option activity under the Scheme for the year ended 31 March 2008 is set out below: Options outstanding Range of exercise prices (Rs.40 466.51 367.77 199.62 39.40 97.77 to 468.12 Outstanding at the beginning of the year Granted during the year Forfeited during the year Expired during the year Exercised during the year Outstanding at the end of the year Exercisable at the end of the year 9.872.986.90 39. as the exercise price was more than or equal to the quoted market price of underlying equity shares on the grant date.40 39.729.87) 999.

04.50 crores (previous year Rs. capital market related services and cash management services. derivative trading and foreign exchange operations on the proprietary account and for customers and central funding. personnel costs. The weighted average fair value of options granted during the year ended 31 March 2009 is Rs.21% Volatility is the measure of the amount by which a price has fluctuated or is expected to fluctuate during a period.2.4 Dividend paid on shares issued on exercise of stock options The Bank may allot shares between the balance sheet date and record date for the declaration of dividend pursuant to the exercise of any employee stock options.27 47. These shares will be eligible for full dividend for the year ended 31 March 2009. trading operations.BC. For calculating volatility. card services.) As reported Proforma 50. premises expenses. internet banking.21 The fair value of the options is estimated on the date of the grant using the Black-Scholes options pricing model. corresponding with the expected life of the options has been considered.81/21. Retail Banking activities also include liability products.15 30. Constitutes lending to individuals/small businesses subject to the orientation. corporate advisory services.BP.Earnings per share: Basic (in Rs. 5 crores as defined by RBI.No.20 50.33% 44.31 29. Segment Treasury Principal Activities Treasury operations include investments in sovereign and corporate debt.54 crores) paid pursuant to exercise of 709.018/2006-07. the daily volatility of the stock prices on the National Stock Exchange.26. ATM services. depository.00 31. The principal expenses of the segment consist of interest expense on funds borrowed from external sources and other internal segments.21% to 8.96% to 8.65% to 48.01% 45. DBOD.) As reported Proforma Earnings per share: Diluted (in Rs. 0. Retail Banking Corporate / Wholesale Banking Other Banking Business Revenues of the Treasury segment primarily consist of fees and gains or losses from trading operations and interest income on the investment portfolio. Dividend relating to these shares has not been recorded in the current year. 5. These segments have been identified & based on RBI's revised guidelines on segment reporting issued on 18 April 2007 vide Circular No.61 48.251 employee stock options after the previous year end and record date for declaration of dividend for the year ended 31 March 2008. All banking transactions not covered under any of the above three segments. Retail Banking. The measure of volatility used in the Black-Scholes options pricing model is the annualized standard deviation of the continuously compounded rates of return on the stock over a period of time. 0.2. 310. Includes corporate relationships not included under Retail Banking. placements and syndication. equity and mutual funds. product and granularity criterion and also includes low value individual exposures not exceeding the threshold limit of Rs. if approved at the ensuing Annual General Meeting.20% to 51. 87 . The principal activities of these segments are as under. management of public issue.22% 2-4 years 7.5 Segmental reporting The business of the Bank is divided into four segments: Treasury. other direct overheads and allocated expenses.63% 31 March 2008 1. over a period prior to the date of grant. Corporate/Wholesale Banking and Other Banking Business.37% 2-4 years 8. 5. with the following assumptions: 31 March 2009 Dividend yield Expected life Risk free interest rate Volatility 1. project appraisals. financial advisory services and NRI services. Appropriation to proposed dividend during the year ended 31 March 2009 includes dividend of Rs.88 32.

25 62.24 3.28 (5.495.51 4.93 10.68) 7. All activities in the Bank are segregated segment-wise and allocated to the respective segment. if any.103.269.19 356.64 1.36 2. ATM interchange fees and cards products.815.331.669.675.149.77) 4.97 2. has been used.59 2.34 42.23 57.66 30. Segment-wise income and expenses include certain allocations.627.40) 10. in crores) 31 March 2009 Treasury Corporate/ Wholesale Banking Retail Banking Other Banking Business Total Segment Revenue Gross interest income (external customers) Other income Total income as per profit and loss account Add / (less) inter segment interest income Total segment income Less: Interest expense (external customers) Less: Inter segment interest expenses Less: Operating expenses Operating profit Less: Provision for non performing assets/Others Segment result Less: Provision for Tax Net Profit Segment assets Segment liabilities Net assets Fixed assets additions during the year Depreciation on fixed assets during the year 88 3.206.40 6.002.88 16. Segmental results are set out below: (Rs.040. which is based on historical matched maturity and market-linked benchmarks.635.20 4.74 188. the funds transfer pricing mechanism presently followed by the Bank.56 965.90 806.24 1.68 2.92 2.24 1.16) (5.369.276.828.94 398.40) 13.48 2.68 730.179.52 600.21 3.15 183.331.88 939.858.40) 0.32 20.84 1.Revenues of the Corporate/Wholesale Banking segment consist of interest and fees earned on loans given to customers falling under this segment and fees arising from transaction services and merchant banking activities such as syndication and debenture trusteeship.46 1.40 25.796.495.724.54 2.36 20.816.40) 34.139.74 188.88 66.24 1.67 . For this purpose.28 (5.358.279.24 1.05 863.899. Revenues of the Retail Banking segment are derived from interest earned on loans classified under this segment and fees for banking and advisory services. Geographical segment disclosure is not required to be made since the operations from foreign branches are less than the prescribed norms.68 3.50 (17. Segment result includes revenue as reduced by interest expense and operating expenses and provisions.20 5. Inter segment interest income and interest expense represent the transfer price received from and paid to the Central Funding Unit (CFU) respectively. Expenses of the Corporate/Wholesale Banking and Retail Banking segments primarily comprise interest expense on deposits and funds borrowed from other internal segments.60 7.785.782.722.228.25 27.27 20.099.732.54 202.22 13.57 735.212.88 (5.958.213.402.133. Operating expenses other than those directly attributable to segments are allocated to the segments based on an activity-based costing methodology.65 (3. other direct overheads and allocated expenses.92 (5.59 457.11 222. Segment income includes earnings from external customers and from funds transferred to the other segments.316.473.644.20 969.279.72 990.835.896.67 457.58 147.735.96 1.00 6. personnel costs. for that segment.508.65 137. infrastructure and premises expenses for operating the branch network and other delivery channels.

89 .New India Assurance Co.52) 21.809.18) 4.03 9.419.33 2.09 684.48) (9.162.07 31.154.171. and The Oriental Insurance Co.856.774.824.11 5.800.93 661.604.991. Ltd.96) 0.15 45.44 134.97 240.64 109.44 (21.689.646.28 575.13 12.(Rs.719.06 3.00 242.31 1.03 1.92 579. Ltd.50 331.491. United India Insurance Co.11 8.530.92 158.367.520.98 640.44 (12.80 46.98 22.242.190.6 Related party disclosure The related parties of the Bank are broadly classified as: a) Promoters The Bank has identified the following entities as its Promoters.225.33 (9.732..071.25 1.37) 1.577.38 12.50 1.46 8.91 1.57 953.96 12. Ltd. National Insurance Co.45 1.80 12.64 3.33 460. in crores) 31 March 2008 Treasury Corporate/ Wholesale Banking Retail Banking Other Banking Business Total Segment Revenue Gross interest income (external customers) Other income Total income as per profit and loss account Add / (less) inter segment interest income Total segment income Less: Interest expense (external customers) Less: Inter segment interest expenses Less: Operating expenses Operating profit Less: Provision for non performing assets/Others Segment result Less: Provision for Tax Net Profit Segment assets Segment liabilities Net assets Fixed assets additions during the year Depreciation and impairment provision on fixed assets during the year 2.63 2.96 (11.85 370.98 1..256.33 130.717. l l l Administrator of the Specified Undertaking of the Unit Trust of India (UTI-1) Life Insurance Corporation of India (LIC) General Insurance Corporation and four PSUs .92 2.28 100.268.248.60 443.005.49 8.64 1.260.03 1. Ltd.41 3.92 158.778.44 4.34 1.768.64 19.779.72 1.077.664.51 4.11 347.584.433.134.53 18.70 2.52) 7.09 1.01 2.2.36 331.073.84 659.349.22 (22.91 96.931.23 1.704.02 41.719.795.

details of transactions with Key Management Personnel are not disclosed since there is only one entity / party in this category.22 70.00 Subsidiaries 0.27 0.15 58.15 152. c) Subsidiary Companies l l l l l Axis Sales Limited Axis Private Equity Limited Axis Trustee Services Limited Axis Asset Management Company Limited Axis Mutual Fund Trustee Limited d) Joint Venture l Bussan Auto Finance India Private Limited Based on RBI guidelines.00 20.72 0.13 1.75 0.22 69.60 Total 3.20 Total 91.63 33.04 6.05 94.50 33.35 6.23 39.00 90 .382.73 5. P.05 69.23 39.86 5.15 0.60 5.01 0.20 The balances payable to/receivable from the related parties of the Bank as on 31 March 2009 are given below: (Rs.45 58. in crores) Items/Related Party Deposits with the Bank Placement of Deposits Advances Investment of the Bank Investment of Related Parties in the Bank Guarantees Promoters 3. The details of transactions of the Bank with its related parties during the year ended 31 March 2009 are given below: (Rs.b) Key Management Personnel l Dr.60 2.60 1.500.00 449.500.66 0. Nayak (Chairman & CEO) Based on RBI guidelines.94 1. J.60 152.86 24. in crores) Items/Related Party Dividend Paid Interest Paid Interest Received Investment of the Bank Investment of Related Parties in the Bank Investment in Subordinated Debt / Hybrid Capital of the Bank Redemption of Subordinated Debt Sale of Investments Management Contracts and Other reimbursements Purchase of Fixed Assets Advances granted Sale of fixed assets Receiving of Services Rendering of Services Other Reimbursements to Related Parties Promoters 91. details of transactions with Joint Venture Companies are not disclosed since there is only one entity / party in this category.00 Subsidiaries 16.366.10 6.15 0.01 0.00 20.00 449.31 1.

15 192.68 0.00 8.23 Repo Borrowing 44.366.58 0.00 185.740.10 131.18 13.60 152.00 260.18 185.22 0.Investment in Subordinated Debt/Hybrid Capital of the Bank 1.36 Subsidiaries 0.00 The details of transactions of the Bank with its related parties during the year ended 31 March 2008 are given below: (Rs.903.00 1.64 The balances payable to/receivable from the related parties of the Bank as on 31 March 2008 are given below: (Rs.32 0.00 1.07 39.67 0.00 152.63 106.18 0.01 152.21 The maximum balances payable to/receivable from the related parties of the Bank as on 31 March 2009 are given below: (Rs.06 97.56 0.13 0.740.14 Investment of the Bank Investment of Related Parties in the Bank 152.884.17 25. in crores) Items/Related Party Dividend Paid Interest Paid Interest Received Investment of the Bank Investment of Related Parties in the Bank Purchase / Sale of Investments Advances granted Management Contracts Sale of fixed assets Receiving of Services Rendering of Services Promoters 54.68 0.392.06 84.21 1.00 Advance for Rendering of Services Other Receivables - 8.18 0. in crores) Items/Related Party Promoters Subsidiaries 26.40 58.63 106. in crores) Items/Related Party Deposits with the Bank Placement of Deposits Advances Investment of the Bank Investment of Related Parties in the Bank Guarantees Investment in Subordinated Debt/Hybrid Capital of the Bank Advance for Rendering of Services Other Receivables Promoters 2.28 15.31 192.08 185.28 Total 54.20 Guarantees 39.740.26 Total 2.10 0.00 260.60 Total 3.903.00 19.877.67 0.00 Investment in Subordinated Debt/Hybrid Capital of the Bank 1.08 0.27 Placement of Deposits 0.26 91 .740.00 Subsidiaries 6.88 185.00 1.00 Deposits with the Bank 3.20 39.05 1.26 58.00 1.10 131.07 39.68 0.45 0.16 25.00 19.15 Advances 0.12 0.23 44.23 15.

00 Subsidiaries 19.51 31 March 2008 76.876.99 1.22 953.01 583.Not later than one year .56 622.50 1.47 11.44 3.00 389. staff quarters.13 618.16 185.Not later than one year .28 214. in crores) 31 March 2009 Future lease rentals payable as at the end of the year: . in crores) Items/Related Party Deposits with the Bank Placement of Deposits Advances Investment of the Bank Investment of Related Parties in the Bank Repo Borrowing Guarantees Investment in Subordinated Debt/Hybrid Capital of the Bank 5.16 25.00 Total 2.08 2.13 432. electronic data capturing machines and IT equipment.07 Promoters 2.Later than one year and not later than five years . (Rs.7 Leases Disclosure in respect of assets given on operating lease Operating lease comprises leasing of power generation equipments.32 57.42 0.The maximum balances payable to/receivable from the related parties of the Bank as on 31 March 2008 are given below: (Rs.00 389.2.857.52 39.Later than five years There are no provisions relating to contingent rent.Later than one year and not later than five years .00 319.14 25. Disclosure in respect of assets taken on operating lease Operating lease comprises leasing of office premises/ATMs.76 2.52 39.50 27.28 92 .53 0.98 154.70 368.00 154.84 192. (Rs.83 1. in crores) 31 March 2009 Gross carrying amount at the beginning of the year Accumulated depreciation as at the end of the year Accumulated impairment losses as at the end of the year Depreciation for the year Impairment losses for the year Minimum lease payments receivable at the end of the year Future lease rentals receivable as at the end of the year: . The terms of renewal/purchase options and escalation clauses are those normally prevalent in similar agreements.16 1.60 12.Later than five years Total of minimum lease payments recognized in the profit and loss account for the year Total of future minimum sub-lease payments expected to be received under non-cancellable sub-leases Sub-lease payments recognized in the profit and loss account for the year 31 March 2008 76.32 57.96 303.44 3.42 12.

22) (93.76 319.65 128.47 crores).8 Other Fixed Assets (including furniture & fixtures) The movement in fixed assets capitalized as application software is given below: (Rs.66 55.16 456. 45. 29. Leave Encashment The Bank charged an amount of Rs.2.70 24. Gratuity The following tables summarize the components of net benefit expenses recognized in the profit and loss account and funded status and amounts recognized in the balance sheet for the Gratuity benefit plan. 7.94 The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under: (Rs.2.10 35.2. 93 . The terms of renewal/purchase options and escalation clauses are those normally prevalent in similar agreements.02 crores).The Bank has sub-leased certain of its properties taken on lease. in crores) As at Deferred tax assets on account of provisions for doubtful debts Deferred tax assets on account of amortization of HTM investments Deferred tax assets on account of provision for retirement benefits Deferred tax assets on account of contingent provision against derivatives Deferred tax liability on account of depreciation and impairment on fixed assets Other deferred tax assets Net deferred tax asset/(liability) 31 March 2009 307.11 crores).02 (0. 8.77 crores to the employees' superannuation plan for the year ended 31 March 2009 (previous year Rs.10 Employee Benefits Provident Fund The contribution to the employees' provident fund amounted to Rs. 5.06 (0.57 101. There are no undue restrictions or onerous clauses in the agreements.05 5. 21.14 31 March 2008 205.22) (123.38 16.44 31 March 2008 119.82) 18.02) 92.82 41.03 (36.9 31 March 2009 160.80) 22.72) 66. There are no provisions relating to contingent rent. 28.46 (47.70 crores for the year ended 31 March 2009 (previous year Rs.12 crores as liability for leave encashment for the year ended 31 March 2009 (previous year Rs. in crores) Particulars At cost at the beginning of the year Additions during the year Deductions during the year Accumulated depreciation as at 31 March Closing balance as at 31 March 5. Superannuation The Bank contributed Rs.

54 9.39 1.Profit and Loss Account Net employee benefit expenses (recognized in payments to and provisions for employees) (Rs. in crores) 31 March 2009 Present Value of Funded Obligations Fair Value of Plan Assets Present Value of Unfunded Obligations Unrecognized Past Service Cost Net Liability Amounts in Balance Sheet Liabilities Assets Net Liability Changes in the present value of the defined benefit obligation are as follows: (Rs.82 12.87) 5.71 6.61 5.93 0.10 (1.74) 5.53 2.37 31 March 2008 14.32 3.35 36.88) 23.15 5.10 6.70) 36.62 5.61 94 .52) 6.21 0.62 6.37 (29.53 2.61 5.35 5.35 (17.37 (0.62 31 March 2008 23.39 1.15 (0.79 31 March 2008 3. in crores) 31 March 2009 Current Service Cost Interest on Defined Benefit Obligation Expected Return on Plan Assets Net Actuarial Losses/(Gains) recognized in the year Past Service Cost Losses/(Gains) on "Curtailments & Settlements" Total included in "Employee Benefit Expense" Actual Return on Plan Assets Balance Sheet Details of provision for gratuity (Rs. in crores) 31 March 2009 Change in Defined Benefit Obligation Opening Defined Benefit Obligation Current Service Cost Interest Cost Actuarial Losses / (Gains) Liabilities Extinguished on Curtailment Liabilities Extinguished on Settlements Liabilities Assumed on Acquisition Exchange Difference on Foreign Plans Benefits Paid Closing Defined Benefit Obligation 23.75) 6.09 (0.

03 (0.74 100.50% p.56 (0.35 17. 7.37 29.17) 31 March 2008 17.21 to 44 (age in years) .74 1.92 (0.17) 6.50% p.73) 11.89 0.44 to 64 (age in years) 6.a.62) 3.a. 7.00% p.a.88) 17.Changes in the fair value of plan assets are as follows: (Rs.75 31 March 2008 11.75 (6.70) 29. in crores) 31 March 2009 Change in the Fair Value of Assets Opening Fair Value of Plan Assets Expected Return on Plan Assets Actuarial Gains / (Losses) Assets Distributed on Settlements Contributions by Employer Assets Acquired due to Acquisition Exchange Difference on Foreign Plans Benefits Paid Closing Fair Value of Plan Assets Experience adjustments (Rs.a.55% p. 10.38 (0. 10.52 (0.00% 1. 6.00% p.a. As the contribution expected to be paid to the plan during the annual period beginning after the balance sheet date is based on various internal/external factors. 6.61) 3.Insurer Managed Funds 31 March 2008 23.70% p.00% 31 March 2009 100.73) 31 March 2009 The major categories of plan assets as a percentage of fair value of total plan assets . a best estimate of the contribution is not determinable.00% 31 March 2008 7. The expected rate of return on plan assets is based on the average long-term rate of return expected on investments of the Fund during the estimated term of the obligations. promotion and other relevant factors.74 (5.a. seniority.87 (0. in crores) 31 March 2009 Defined Benefit Obligations Plan Assets Surplus / (Deficit) Experience Adjustments on Plan Liabilities Experience Adjustments on Plan Assets 36. 95 .00% 1.00% The estimates of future salary increases considered in actuarial valuation take account of inflation.00% Principal actuarial assumptions at the balance sheet date: Discount Rate Expected rate of Return on Plan Assets Salary Escalation Rate Employee Turnover .

94 0.2. in crores) 31 March 2009 Opening balance at the beginning of the year Additions during the year Reductions during the year Closing balance at the end of the year c) Movement in provision for credit card reward points is set out below: (Rs.5.95 (0.10 (3.24 4. 96 . These also include demands raised by income tax and other statutory authorities and disputed by the Bank.12 Description of contingent liabilities: a) Claims against the Bank not acknowledged as debts These represent claims filed against the Bank in the normal course of business relating to various legal cases currently in progress.2. in crores) 31 March 2009 Opening provision at the beginning of the year Provision made during the year Reductions during the year Closing provision at the end of the year d) Movement in provision for debit card reward points is set out below: (Rs.24 31 March 2008 5. in crores) 31 March 2009 Opening balance at the beginning of the year Additions during the year Reductions on account of payments during the year Reductions on account of reversals during the year Closing balance at the end of the year b) Movement in provision for credit enhancements on securitized assets is set out below: (Rs.25) 4.80 (1.23 5.89 (0. in crores) 31 March 2009 Opening provision at the beginning of the year Provision made during the year Reductions during the year Closing provision at the end of the year 4.94 3.11) 3.01) 5.21 (0.95 5.51 31 March 2008 1.47 (0.73 31 March 2008 0.10) 31 March 2008 3.18) 5.11 Provisions and contingencies a) Movement in provision for frauds included under other liabilities is set out below: (Rs.44) 4.73 3.10 4.

estimated amount of contracts remaining to be executed on capital account and commitments towards underwriting and investment in equity through bids under Initial Public Offering (IPO) of corporates as at the year end. P.b) Liability on account of forward exchange and derivative contracts The Bank enters into foreign exchange contracts. Interest rate swaps are commitments to exchange fixed and floating interest rate cash flows. Nayak Chairman & CEO P. Oza Company Secretary Somnath Sengupta President Finance & Accounts N. based on ruling spot rates. e) Other items Other items represent outstanding amount of bills rediscounted by the Bank. 5. Patil Director R. interest rate futures and forward rate agreements on its own account and for customers. Guarantees represent irrevocable assurances that the Bank will make payments in the event of the customer failing to fulfill its financial or performance obligations. B. J. Forward Rate Agreements are agreements to pay or receive a certain sum based on a differential interest rate on a notional amount for an agreed period. endorsements and other obligations These include documentary credit issued by the Bank on behalf of its customers and bills drawn by the Bank's customers that are accepted or endorsed by the Bank. For Axis Bank Ltd. the Bank issues guarantees on behalf of its customers to enhance their credit standing.2. Interest Rate Futures are standardized. H. Vaish Director Date: 20 April 2009 Place: Mumbai 97 . Currency swaps are commitments to exchange cash flows by way of interest/principal in two currencies. J. c) Guarantees given on behalf of constituents As a part of its banking activities. L. exchange-traded contracts that represent a pledge to undertake a certain interest rate transaction at a specified price. currency options/swaps. d) Acceptances. Forward exchange contracts are commitments to buy or sell foreign currency at a future date at the contracted rate.13 Previous year figures have been regrouped and reclassified. Singhal Director R. C. where necessary to conform to current year's presentation. on a specified future date. A foreign currency option is an agreement between two parties in which one grants to the other the right to buy or sell a specified amount of currency at a specific price within a specified time period or at a specified future time.

896 702.640 (53.338 167. 31 March 2009 Axis Private Equity Ltd.Statement pursuant to Section 212 of the Companies Act. 1956. 1956 granted by the Ministry of Corporate Affairs.291) Axis Trustee Services Ltd.597 5. 47/126/2009-CL-III dated 27th March 2009. in thousands) As on/for the year ended Axis Sales Ltd.952) 2.000 (157. Government of India vide its letter no.000 2.282) 129.660 300.068 14.474 1. 15.170 98 .330 (56.551 32.644 3.883 114.246) 32.830 1.480 826 (5.592 10. relating to subsidiary company In terms of the approval u/s 212(8) of the Companies Act.586 26. Capital Reserves and Surplus Total Assets (Fixed Assets + Investments + Current Assets + Deferred Tax Assets) Total Liabilities (Loans + Current Liabilities + Provisions) Investments Total Income Profit/(Loss) Before Taxation Prior Period Items (net) Provision for Taxation Profit/(Loss) After Taxation and Prior Period Items Proposed Dividend and Tax (including cess) thereon 310.000 (31.899 10. (Rs.558) 150.

Chartered Accountants per Viren H.: 048749 Mumbai: 20 April 2009 99 . For S. Ahmedabad and The National Stock Exchange. We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or effectiveness with which the management has conducted the affairs of the Bank. Batliboi & Co. Mehta Partner Membership No. Our examination was limited to procedures and implementation thereof.R. as stipulated in clause 49 of the Listing Agreement of the said Bank with The Bombay Stock Exchange. It is neither an audit nor an expression of opinion on the financial statements of the Bank.AUDITORS' CERTIFICATE To The Members of Axis Bank Limited We have examined the compliance of conditions of corporate governance by Axis Bank Limited ('the Bank'). The compliance of conditions of corporate governance is the responsibility of the management. adopted by the Bank for ensuring the compliance of the conditions of the Corporate Governance.CORPORATE GOVERNANCE . In our opinion and to the best of our information and according to the explanations given to us. for the year ended on 31 March 2009. we certify that the Bank has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. The Stock Exchange.

L. 2. the Banking Regulation Act. J. Nayak N. all Directors are independent except S/Shri P. Patil. II. L. Prithviraj. R. thereby safeguarding the interest of its other stakeholders such as depositors. Vaish M. the Bank's promoters. Singhal A. the 6 independent Directors constitute more than 50% of the Board's membership. Nayak. C. R. Philosophy on Code of Governance: The Bank's policy on Corporate Governance has been: I. 13th October 2008. Vaish. 6th June 2008. responsibility. V. To enhance the long term interest of its shareholders and to provide good management. 15th July 2008. N. Thus. J. suppliers and employees. 14th July 2008. Varma R. L. The detailed reports of the Bank's performance are periodically placed before the Board. To identify and recognize the Board of Directors and the Management of the Bank as the principal instruments through which good corporate governance principles are articulated and implemented. Board of Directors: The composition of the Board of Directors of the Bank is governed by the Companies Act. Pannir Selvam. Singhal. B. the Board also carries out functions such as approving the Business Plan. S/Shri P. Prithviraj attended the last Annual General Meeting held on 6th June 2008 at Ahmedabad. T. Patil Rama Bijapurkar R. H. J. C. B. Pannir Selvam J. Varma. The composition of the Bank's Board includes the representatives of the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I). and the Life Insurance Corporation of India. Subbiah Ramesh Ramanathan K. as central tenets of good corporate governance. Nayak. T. R. the adoption of prudent risk management techniques and compliance with the required standards of capital adequacy. R. The Board is responsible for the management of the Bank's business. In all. to identify and recognize accountability. 1956. It ensures that the Bank keeps shareholders informed about plans. 9th January 2009. In addition to monitoring corporate performance. The function. Subbiah and K. besides the Annual General Meeting: 21st April 2008. 100 . Vaish and K. customers. H. N. Pannir Selvam. transparency and equality of treatment for all stakeholders. M. R. 8 meetings of the Board were held during the year on the following dates. B. A. It presently consists of 10 Directors and its mix provides a combination of professionalism. Prithviraj Chairman and Chief Executive Officer Independent Promoter-Nominee of the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) Independent Independent Independent LIC Nominee Independent Independent Promoter-Nominee of the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) Of these. The following members now constitute the Board: P. J. A. and fixing exposure limits. 21st February 2009 and 23rd March 2009. 1949 and the Clause 49 of the Listing Agreement. T.C O R P O R AT E G O V E R N A N C E (Forming Part of the Directors' Report for the Period Ended 31st March 2009) 1. reviewing and approving the annual budgets and borrowing limits. role and accountability of the Board are well defined. V. N. Further. knowledge and experience required in the banking business. N. strategies and performance. creditors. The Bank's Board comprises a combination of executive and non-executive Directors.

Ltd. Shri Ramesh Ramanathan attended five meetings. 1. 8. V. Shri N. PANNIR SELVAM: Name of the Company/Institution Rolta India Ltd. Shri A. H. R. Tolani Maritime Institute A. 2iCapital (India) Pvt. Institute of Management Studies Board of Governors. SINGHAL: Name of the Company/Institution Shapoorji Pallonji Finance Limited Deepak Fertilisers & Petrochemicals Corporation Limited Max India Limited Birla Sun Life Asset Management Company Limited Tolani Shipping Limited XL Telecom Limited Mahagujarat Chamunda Cements Company Pvt. J. Shri J. and Shri Surendra Singh attended the only meeting for which he was eligible. Sr. 1. 14. 2. London International Chamber of Commerce-Marine Transport Commission. 11. T. iv. Ltd. The Directors of the Bank also hold positions. 6. No. 3. Shri R. Nayak. Sr. Ltd. associations and firms as per the details given below: i. Patil. Ambit Holdings Pvt. Limited International Chamber of Commerce-Financial Investigations Services. Pannir Selvam. Smt. Paris Board of Governors. Rama Bijapurkar attended seven meetings. members and partners in other well-known and reputed companies. L. Vaish and Shri K. Shri M. 16. 15. 10. R. Sr. 4. B. as directors. iii. Shri R. 9. Subbiah attended six meetings. 2. trustees. 12. Prithviraj attended all the eight meetings. NAYAK : NIL N. No. C. J. SCI Forbes Limited Binani Industries Limited Forbes Bumi Armada Limited Samalpatti Power Company Pvt. 13. 1. Singhal. trusts. VARMA: Name of the Company/Institution Infosys BPO Limited OnMobile Global Limited Nature of Interest Director/Chairman-Compensation Committee/ Chairman-Audit Committee Director/Chairman-Audit Committee/MemberShare Transfers and Investor Grievance Committee Nature of Interest Director Independent Director/ Member-Audit Committee Member Member Member Member . Varma. These disclosures are made as required under the amended Companies Act. N. 5. T.Shri P. ii. P. J. 2. C.Advisory Board Nature of Interest Director Director/ Chairman-Audit Committee Director/Chairman-Audit Committee/ MemberRemuneration Committee Director/ Member-Remuneration Committee Director / Chairman-Audit Committee Director Director Chairman Director / Member-Investors Relation Committee Chairman Chairman/Chairman-Remuneration Committee Director/Chairman-Audit Committee 101 . 7. No.

9. RAMA BIJAPURKAR: Name of the Company/Institution Infosys Technologies Ltd. 5.Audit Committee Chairman/Chairman-Audit Committee & Remuneration Committee/Chairman-Nomination Committee Director/Chairman-Audit Committee/MemberCommittee for Declaration of Default/MemberP r i c i n g C o m m i t t e e / M e m b e r .) The Tata Power Company Ltd. Ltd. SBI Capital Markets Ltd.Audit Committee/ Member-Risk Management Committee Independent Director/Chairperson-Board Nomination & Compensation Committee Independent Director 2. 8. Sr. 5. R. Nature of Interest Independent Director/Chairperson-Investor Grievance Committee/Member-Risk Identification and Mitigation Committee Independent Director/Member-Compensation Committee/ Chairperson-Nominations Committee/ Chairperson-Human Resources Committee Independent Director/Member-Compensation Committee Chairperson-Board/ Independent Director Independent Director/ Chairperson. 1. 6. ICICI Prudential Life Insurance Company Ltd. National Securities Depository Ltd. No. Pvt. No.Audit Committee Director/Member-Audit Committee Director/Member-Audit Committee/Member Committee of Directors/Member-Remuneration HR Committee/Chairman-Risk Management Committee of Board Director/Chairman-Audit Committee Director/Chairman-Audit Committee/Chairman Risk Management Committee Director Additional Director 4. NSDL Database Management Ltd. CorpBank Securities Ltd.Te c h n o l o g y Committee/Member-Currency Derivative Segment Committee Director/Member-Committee for Declaration of Default /Member . 12. Axis Private Equity Ltd. National Stock Exchange of India Ltd. 1. 7. 7. 8. 3. L&T Infrastructure Finance Company Ltd. Chairman/Chairman-Membership Approval Committee Chairman/Member-Audit Committee/ChairmanNomination Committee/ Chairman-Compensation Committee Chairman/Chairman . vi.v. PATIL: Name of the Company/Institution The Clearing Corporation of India Ltd. Godrej Consumer Products Ltd. CRISIL Limited CRISIL Risk & Infra Structure Solutions Limited Mahindra Holidays & Resorts India Ltd. Sr. (erstwhile Standard Chartered Asset Management Co. IDFC Asset Management Co. 13. NSE. 6. National Securities Clearing Corporation India Ltd. Pvt. 3. Mahindra & Mahindra Financial Services Ltd. Bharat Petroleum Corporation Ltd. 10. Ltd. Clear Corp Dealing Systems (India) Ltd. 102 .IT Ltd. 11. H.Remuneration Committee/Member-Audit Committee Independent Director/ Member. Nature of Interest Chairman/Chairman-Bye Laws Rules & Regulations Committee/Chairman-Membership Approval Committee/Chairman-Capital Expenditure Approval Committee/Chairman. 4.HR Committee of Directors 2.

3. Ltd. Ltd. 1. 3. Chennai RAMESH RAMANATHAN: Name of the Company/Institution Janalakshmi Social Services (Section 25 Company) Janalakshmi Financial Services Pvt.Audit Committee/ Member-Nomination & Compensation Committee 103 Administrator & Member of the Board Nature of Interest Nature of Interest Chairman Chairman Director Chairman Director Director Nature of Interest Director Director/Chairman-Remuneration & Nomination Committee/ Member. ix. Ltd. 12. 3. Sr. 2. No. No. Sr. 1. 15. x. L. Give Foundation (Section 25 Company) Independent Director Independent Director/ Member-Compensation Committee Independent Director vii. B.C. 2. Sr. 16. K. 10. VAISH : Name of the Company/Institution OTCEI Securities Limited M.9. 5. 9. 2. 4. 11. No. 4. 10. No. Sanghmithra Rural Financial Service (Section 25 Company) Cross Domain Solutions Pvt. 8. PRITHVIRAJ: Name of the Company/Institution Administrator of the Specified Undertaking of the Unit Trust of India Advisory Board on Bank.V. Ltd. ICI India Limited SRF Limited Parry Enterprises India Limited National Skills Development Corporation (Section 25 Company) Chennai Willingdon Corporate Foundation Chennai Heritage (Section 25 Company) Murugappa & Sons Kadamane Estates Company Vellayan Chettiar Trust Muna Vena Murugappan Trust A M M Foundation India Foundation for the Arts Advisory Board of Oracle India Private Limited Advisory Board of Pari Washington Company Advisors Private Limited. 14. Commercial & Financial Frauds appointed by C. V. SUBBIAH: Name of the Company/Institution Lakshmi Machine Works Ltd. 6. Member Independent Director / Member. Sr. Janadhar Constructions Pvt. 5. Janalakshmi Financial Services Private Limited Ambit Holdings Pvt. viii. 1. 6. 7. N. 1. 13. 11. Financial Information Network & Operations Ltd. Surana Industries Ltd. R.Audit Committee Director/ Chairman -Audit Committee Director Chairman Director Director Partner Partner Trustee Trustee Trustee Trustee Member Member Member Nature of Interest Director .

Singhal Rama Bijapurkar K. Pannir Selvam .Audit Committee Independent Director / Head-Rating Committee The business of the Board is also conducted through the following Committees constituted by the Board to deal with specific matters and delegated powers for different functional areas: a) Committee of Directors: P. Shinsei Trustee Company (India) Pvt. Ltd.Chairman J. J. Varma Ramesh Ramanathan d) Shareholders/Investors Grievance Committee: A. 5.Chairman N.Vice Chairman R. Patil . T. N. B. B. H. 6. R. Patil . Vaish K. C. C.Chairman R. Falcon Tyres Ltd. Patil M. B. Vaish c) Risk Management Committee: P. H. Chairman / Chairman-Board of Trustees Independent Director / Member. Patil g) Customer Service Committee: A. V. R. Singhal . L. H. C. Singhal A. C. N.4. Prithviraj e) Remuneration and Nomination Committee: R. H. J. Nayak . Pannir Selvam R. Singhal A.Chairman J. Nayak .Chairman N. T. Pannir Selvam R. Subbiah b) Audit Committee: N.Chairman N. Pannir Selvam . Nayak . L. Prithviraj f) Special Committee of the Board of Directors for Monitoring of Large Value Frauds: P. Brickwork Ratings India Pvt. J. T. T.Chairman R. Vaish 104 . L. Varma R. Ltd.

iv. 12th May 2008. 20th August 2008. 105 . 13th December 2008. Singhal. To approve proposals related to the Bank's operations covering all departments and business segments. 11th August 2008. 12th November 2008. ii. 10th December 2008. 5th June 2008. ATMs and currency chests. c) Risk Management Committee: The Risk Management Committee functions with the following objectives: i. extension counters. To make allotments of shares.The functions of the Committees are discussed below: a) Committee of Directors: The Committee of Directors is vested with the following functions and powers: i. iii. B. Shri N. iii. To discuss issues relating to day-to-day affairs and problems and to take such steps for the smooth functioning of the Bank. ii. vi. Meetings and Attendance during the year: 12 meetings of the Audit Committee of the Board were held during the year on 19th April 2008. Vaish attended all the 12 meetings. v. To follow up issues raised in LFAR and RBI inspection reports. discuss strategic issues in relation to credit policy. C. 14th May 2008. and frauds. As required under Section 292A and Clause 49 of the Listing Agreement. To sanction expenditure above certain stipulated limits. Patil attended all the 12 meetings. To approve expansion of the locations of the Bank's network of offices. 2nd February 2009 and 2nd March 2009. Singhal and Shri.2001. Shri P. 11th October 2008. 16th June 2008. ii. 11th September 2008. T. 11th October 2008. To review the internal audit and inspection systems with special emphasis on their quality and effectiveness. To provide approvals for loans above certain stipulated limits. Patil and Shri R. Nayak. To review investment strategy and approve investment related proposals above certain limits. Shri A. To review inspection and concurrent audit reports of large branches with a focus on all major areas of housekeeping. and 23rd March 2009.1. To monitor the business of the Bank periodically and also to suggest ways and means to improve the working and profitability of the Bank from time to time. Meetings and Attendance during the year: 12 meetings of the Committee of Directors were held during the year on 19th April 2008. b) Audit Committee: The Audit Committee functions with the following objectives: i. arrears in the balancing of books and unreconciled entries in inter-bank and NOSTRO accounts. To review the quarterly financial results and the annual results of the Bank and to recommend their adoption to the Board. V. C. iv. vi. particularly inter-branch adjustment accounts. Shri R. To review the system of appointment and remuneration of concurrent auditors and external auditors. 12th July 2008. vii. 9th January 2009. H. H. To perform the role of Risk Management in pursuance of the Risk Management guidelines issued periodically by RBI and the Board. viii. the new 'Terms of Reference' of the Committee were approved by the Board of Directors at its meeting held on 23. 21st February 2009. 15th July 2008. 10th January 2009. L. To provide direction and to oversee the operations of the audit functions in the Bank. R. Shri M. J. To issue Powers of Attorney to the officers of the Bank. 21st November 2008. Subbiah attended 6 meetings. branches. v. Shri N. Pannir Selvam. and deliberate on the quality of the credit portfolio. 9th September 2008.

13th October 2008 and 9th January 2009. 14th July 2008. 7. Prithviraj attended all the 4 meetings. Meetings and Attendance during the year: 4 meetings of the Shareholders/Investors Grievance Committee were held during the year on 21st April 2008. 3. Shri P. Shri Surendra Singh attended one meeting for which he was eligible. The Committee is also consulted on appointments and promotions at very senior levels of the Bank.f.2008 to 31. Shri R. and other “fit and proper” criteria. Nayak and Shri J. B. shares sent for transfer. The Committee also undertakes a process of due diligence to determine the suitability of the person for appointment/continuing to hold appointment as a Director on the Board. ** Received in last week of March 2009. 14th July 2004 and it functions with the objective of deciding the remuneration package for all employees and directors. 13th October 2008.4. is the Compliance Officer for SEBI/Stock Exchange related issues. J. pensions and stock options. 5. 2. No. At monthly intervals. Vaish and Shri K. 9. expertise. track record. 6. 14th July 2008. Oza. and Shri Ramesh Ramanathan attended 4 meetings. non-receipt of balance sheet and other similar grievances. Nature of Reference/Complaints Change of Address Bank Mandates ECS Nomination Non-receipt of Share Certificates Correction of names Stock Exchange queries NSDL/CDSL Queries SEBI Receipt of dividend warrant for revalidation Non-receipt of Dividend Transfers Received 541 150 526 209 27 48 2 2 5 164 582 678 Disposed Off 541 150 526 209 27 48 2 2 4 164 582 670 Pending 1* 8** * Pending. Shri P. benefits.3. Varma attended all the 5 meetings. Company Secretary.e.Meetings and Attendance during the year: 5 meetings of the Risk Management Committee were held during the year on 21st April 2008. 11. Shri A. based upon qualification. e) Remuneration and Nomination Committee: The Remuneration Committee of the Board was reconstituted as the Remuneration and Nomination Committee w. investors' service status reports giving brief details of the complaints received. Details of the status of the references/complaints received for the year are given in the following statement: Status of the References/Complaints from 1. J. R. refund orders. N. transferred during first week of April 2009. 12th November 2008 and 9th January 2009. T. 106 . the Bank sends to the members of the Committee. 4. 12. bonuses. integrity. L. 1.2009 Sr. 8. which includes salaries. 10. Hence. d) Shareholders/Investors Grievance Committee: The objective of the Shareholders/Investors Grievance Committee is to look into redressal of shareholders' and investors' grievances relating to non-receipt of dividend. Pannir Selvam.

J. subject to the provisions of and limitations contained in Section 318 of the Companies Act.f. 2008.p. the Bank terminates the term of office of the Chairman and Chief Executive Officer. J. 8. 18th March. 2. vii. shareholders of the Bank and Reserve Bank of India. 2009 and 27th March.p. iii.p.030 options under the Employee Stock Option Plan.768 options have been exercised by Shri P.a. Perquisites (evaluated as per Income Tax Rules. Gratuity @ one month's salary for each completed year of service or part thereof. with the last two being strongly contingent on employee performance.e. If. 36. 50. Nayak for a period from 1st August 2007 till 31st July 2009. The details of remuneration paid to Shri P.a. Shri R. J. Grant III (6th May 2003). prior to expiration of the agreement. J. 10th December. loans. 2008.000/. Grant VI (17th April 2006). 65. Shri N.f. 2008. 6th February. Patil. Grant VII (17th April 2007). Salary of Rs. From these eight tranches. Shri Surendra Singh attended one meeting for which he was eligible. Out of the total options exercised by Shri P. Personal Entertainment Allowance of Rs. 2. The Remuneration Policy for the Chairman and Chief Executive Officer is similarly structured and approved by the Board of Directors. and others were provided in accordance with the Rules of the Bank. 107 . water and furnishings. travelling and halting allowances.000/. 20th January. 4. 56. Nayak during 2008-09 are: i. J. Singhal and Smt.060 and 28.40. The terms and conditions and remuneration payable to Shri P.e.000/. he shall be entitled.a. 7th July. N. Compensation is structured in terms of fixed pay.750.000. iv. ii. to receive compensation from the Bank for the loss of office to the extent provided in the agreement. 56. 1. 2009. Remuneration of Directors: I. 1st January 2005 till 31st July 2007. To conform to the advice of the Reserve Bank of India. 23rd March.35.000/. wherever applicable. 2009. use of car and telephone at residence. club fees. 9th January. viii. Shri Nayak has been reappointed as Chairman and Chief Executive Officer (Whole Time Chairman) of the Bank for the period 1st August 2007 to 31st July 2009. 1956. variable pay and employee stock options. newspapers and periodicals. 2008. electricity. v. Shri. Variable pay to be paid as decided by the Remuneration and Nomination Committee/Board of Directors subject to a maximum of 25% of salary drawn during the year. C. Nayak as the Chairman and Chief Executive Officer of the Bank on 31st July 2009. the Board of Directors of the Bank in its meeting held on 9th January 2009 decided that on expiry of the present term of Shri P. Nayak was granted 22.00. 2009.99. personal accident insurance.a. 2. no options were exercised during the period under review. Nayak were approved from time to time by the Board of Directors. the Remuneration Policy should be structured in line with other peer group banks.500. Shri K. J. Rama Bijapurkar attended all the 14 meetings. Grant IV (29th April 2004). Upkeep Allowance towards upkeep of residential accommodation provided by the Bank of Rs.00. Shri P. 31st October. 74. Grant II (28th February 2002). and is sensitive to compensation packages in this part of the financial market. medical reimbursement. Nayak. 2009.060. P. H. 27th February. Leave Fare Concession facility of Rs.600. Nayak had been appointed as the Chairman and Managing Director of the Bank w.p. 25th February. 1st January 2000 to 31st December 2004 and he had been thereafter reappointed as the Chairman and Managing Director of the Bank w. J. 2008. and Grant VIII (21st April 2008) respectively.304 options were vested up to March 2009 and out of these vested options. or otherwise at actual cost to the Bank) such as the benefit of the Bank's furnished accommodation. This has been approved by the Bank's shareholders through an amendment to the Bank's Articles of Association. Grant I (24th February 2001). Provident Fund @ 12% of pay with equal contribution by the Bank or as decided by the Board of Trustees from time to time. Prithviraj attended 12 meetings. Superannuation @ 10% of pay.25. 2009. 12th November. the post of Chairman and Chief Executive Officer be separated into the posts of (i) Non-Executive Chairman and (ii) Managing Director with effect from 1st August 2009. 2009. the shareholders and the Reserve Bank of India from time to time. Either side can terminate the agreement by giving ninety days notice in writing. J. 6th March.50. vi. Remuneration Policy: The Bank believes that to attract the right talent.Meetings and Attendance during the year: 14 meetings of the Remuneration and Nomination Committee were held during the year on 16th April. 2009. 2009. Grant V (10th June 2005).000. The Bank has entered into a service agreement with Shri P. Nayak.

Pannir Selvam attended the meeting. B. Patil was inducted as a member of the Committee w. if any.80. iii. Vaish M. 9. or as deemed necessary by the Committee. sitting fees of Rs.00. is completed quickly without loss of time. Varma R. J. R. H.000 4. R.000 47. Reimbursement of expenses.80.20. if any. All Directors of the Bank. and vi. Singhal A. Nayak.for every meeting of the Board and also for every meeting of the Committees attended by them. held by the non-whole time Directors as on 31st March 2009 are set out in the following table: Name of Director Shri R.000/.000 9. 4. L. One meeting of the Special Committee of the Board of Directors for Monitoring of Large Value Frauds was held on 14th July 2008 during the year.000 9. of shares held 225 equity shares Special Committee of the Board of Directors for Monitoring of Large Value Frauds: The Special Committee of the Board of Directors for Monitoring of Large Value Frauds was constituted on 14th July 2004 and the Committee functions with the following objective: To monitor and review all the frauds of Rs. Prithviraj TOTAL Sitting Fees (Rs. N. if required.000 The details of shares of the Bank. 108 . J. in reporting to top management of the Bank and RBI. v. 2. 5. that facilitated perpetration of the fraud and put in place measures to plug the same. V.40. B. Meetings and Attendance during the year: Meetings are to be held whenever large value frauds occur.e.000 1. Identify the reasons for delay in detection.20.00.000 5. being on actual basis. 1. Vaish f) No. Name of Directors P. Singhal and Shri A. T. if any. Sitting Fees: The details of sitting fees paid/payable to the Directors during the period from 1st April 2008 to 31st March 2009 are as follows: Sr.000 2.40. During the year. iv. Shri P.60.20. Shri N. 11. 13th October. except for Shri P. 3. such as strengthening of internal controls. Pannir Selvam J. ii. L.was paid /payable to the Directors of the Bank. 6.000/. 20. Ensure that staff accountability is examined at all levels in all cases of frauds and staff side action. No. T. Monitor progress of CBI/Police Investigation and recovery position. Patil Rama Bijapurkar R.f. C.000 5.80. 47. Nayak were paid sitting fees of Rs. Nayak Surendra Singh N.000 4. 8.000 3. 10. C.) NIL 60. Review the efficacy of the remedial action taken to prevent recurrence of frauds. Dr. i. H. Put in place other measures as may be considered relevant to strengthen preventive measures against frauds. Subbiah Ramesh Ramanathan K. for travel to and from the places of their residence to the venue of the meeting. J. is made directly by the Bank to the service providers. lodging and boarding when attending the meeting.II. 1 crore and above so as to: Identify systematic lacunae. 7. 2008.

and iv. R. 9-Alteration of Articles of Association of the Bank pursuant to Section 31 of the Companies Act.000 crores.00 a. S. 2006 of the Bank.g) Customer Service Committee: The Customer Service Committee was constituted on 14th October 2004 and the Committee functions with the following objectives: i. Shri A. • Resolution No.6. Pannir Selvam and Shri R. ii. 109 . Ahmedabad-380 006 Bhaikaka Bhavan. Ahmedabad-380 006 Bhaikaka Bhavan. Mounting innovative measures towards enhancing the quality of customer service and improving the level of customer satisfaction for all categories of the Bank's clientele.2006-Friday Special Resolutions • Resolution No.00 a. 10. Ellisbridge.5-Appointment of Statutory Auditors under Section 224A of the Companies Act. iii. 1956. offer.m. L. Bringing about ongoing improvements in the quality of customer service provided by the Bank.2008-Friday Time 10. Location Bhaikaka Bhavan. Ahmedabad-380 006 The special resolutions passed during the last three Annual General Meetings were as under: Annual General Meeting 12th Date of Annual General Meeting 2.m. Meetings and Attendance during the year: 4 meetings of the Customer Service Committee were held during the year on 14th May 2008. Ellisbridge. Shri J. Vaish attended all the 4 meetings. 1956 for raising the borrowing limits to Rs. 11-Approval of the shareholders of the Bank pursuant to Section 81 of the Companies Act.6. Former Deputy Governor of RBI.00 a. 10.2007-Friday 6. General Body Meetings: The last three Annual General Meetings were held as follows: Annual General Meeting 12th 13th 14th Date and Day 2. • Resolution No. S. 20.6. 1956. Varma attended 3 meetings. 6-Appointment of Statutory Auditors under Section 224A of the Companies Act.2007-Friday • Resolution No. 3. Overseeing the functioning of the Adhoc Committee of the Bank which would also include compliance with the recommendations of the Committee on Procedures and Performance Audit on Public Services (CPPAPS) constituted by RBI under the Chairmanship of Dr. 20th August 2008. Strengthening the corporate governance structure in the Bank. T. Ellisbridge. 1956 authorising the Board of Directors of the Bank to issue. • Resolution No.2006-Friday 1.6. • Resolution No.6.m. B. 12-Approval of the shareholders of the Bank pursuant to Section 293(1)(d) of the Companies Act. 1956. 1956. 10th December 2008 and 21st February 2009. Tarapore. and allot equity stock options under the Employees Stock Option Scheme. 13th 1. 8-Change of Name of Bank pursuant to Section 21 of the Companies Act.

1. Financial Year 2003-04 2004-05 2005-06 2006-07 2007-08 Rate of Dividend 25% (Rs.6. Out of 6.2011 10.2008 Date of Payment (Date of Dividend Warrant) 19.2014 6.2005 2.6. 2.2006 2. 2.2004 10.50 per share) 28% (Rs. 4.6. therefore.6.2004 10. 3.6. No Resolution in the notice of the proposed fifteenth Annual General Meeting is proposed to be passed by Postal Ballot.6. 5. Out of the total valid votes of the shareholders.7. 1956. Listed in the table below are the dates of dividend declaration since 2001-02 and the corresponding dates when unclaimed dividends are due to be transferred to the Central Government. 9-Approval of the shareholders of the Bank pursuant to Section 81 of the Companies Act.80 per share) 35% (Rs.2013 1.50 per share) 45% (Rs. Under the Transfer of Unclaimed Dividend Rules. and allot equity stock options under the Employees Stock Option Scheme.50 per share) 60% (Rs. 1956 authorising the Board of Directors of the Bank to issue.2003 18. if not already claimed.196 were valid ballots and 231 were invalid ballots.6.8. Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Dividend-Type Final Final Final Final Final Final Final 110 Date of Declaration 10.7.7.2007 6. again requested to claim their unpaid dividend. Shareholders are.2. offer.427 numbers of ballots were received by Shri Ashwin Lalbhai Shah. it would not be possible to claim the dividend amount once deposited in Investors' Education & Protection Fund (IEPF).2015 .2008 Due Date of Transfer 10.00 per share) Date of Declaration (AGM) 18. Transfer to Investor Protection Fund: Pursuant to Section 205C of the Companies Act. No.6. 99. Dividend History of Last Five Years: Sr. 3. *Resolution proposing the alteration of the Articles of Association of the Company in respect of separation of the present post of Chairman and Chief Executive Officer in the posts of (i) Non-Executive Chairman and (ii) Managing Director was passed through postal ballot.6. 2008 of the Bank.2004 11. *Resolution passed through Postal Ballot Date of Scrutinizer's Report 25.2008 Unclaimed Dividends: All shareholders whose dividends are unpaid have been intimated individually to claim their dividends.6.2007 6.7.6. A total of 6.7.427 ballots received by Shri Shah.2006 1.2009 25. dividends that are unclaimed for a period of seven years get transferred to the Investors' Education and Protection Fund administered by the Central Government.2008-Friday • Resolution No.6.7. 6. an Advocate of Gujarat High Court who was appointed as Scrutinizer by the Bank.2012 2. 1956.89% votes were in favour of the Resolution. 6.6.2010 18.7. 4.2009 • Special Resolution under Section 31 of the Companies Act.14th 6. 1956.2005 2. 2.2007 7. • Resolution No.6.2002 25.2005 3. 4.6. 6-Appointment of Statutory Auditors under Section 224A of the Companies Act.6.2006 1.6. according shareholders' approval for Alteration of the Articles of Association of the Company in respect of separation of the present post of Chairman and CEO into the posts of i) Non-Executive Chairman and ii) Managing Director.

Also. The Bank has complied with the mandatory requirements regarding the Board of Directors. formal presentations are made to analysts by the management and the same is also placed on the Bank's website. The Management's Discussion and Analysis Report for the year 2008-09 is part of the Annual Report. The meeting to consider audited annual accounts and Q4 results is proposed to be held during the second half of April 2010. The Bank has introduced a Whistle Blower Policy under which the Bank employees who observe an unethical or improper practice can approach the Audit Committee without necessarily informing their supervisors. and strictures imposed by Stock Exchanges and SEBI on any matter related to capital markets. penalties. during the last three years. Address of our official website is www.axisbank. All meetings to consider quarterly results are proposed to be held during first half of July 2009.M. Near Law Garden. their subsidiaries or relatives that may have a potential conflict with the interests of the Bank. It is hereby affirmed that all members of the Board of Directors and Senior Management Personnel have complied with the code of conduct applicable to them during the year ended 31st March 2009. press releases and by posting information on the Bank's web site.com where the information is displayed. The Whistle Blower Policy is required to be reviewed by the Audit Committee of the Board on half . Disclosures: • There were no transactions of a material nature undertaken by the Bank with its promoters. Ahmedabad-380 006. The Bank has also complied with non-mandatory requirements like formation of Remuneration & Nomination Committee. at Bhaikaka Bhavan (British Library Building). General Shareholder Information: • AGM: Date. There are no instances of non-compliance by the Bank. • Financial Year/ Calendar - 111 . directors or the management. after the half-yearly and the annual results are approved by the Board. time and venue 1st June 2009-10. The results are generally published in the Economic Times and Gujarat Samachar or Sandesh or Divya Bhaskar. Means of Communication: • Quarterly/Half-yearly results are communicated through newspaper advertisements.yearly basis. Generally. It is hereby affirmed that the Bank has not denied personal access to the Audit Committee of the Bank and it has further provided protection to Whistle Blowers from unfair termination and other unfair prejudicial employment practices. The policy contains provisions protecting Whistle Blowers from unfair termination and other unfair prejudicial and employment practice. • • • • 7. Ellisbridge. Half-yearly results are forwarded to each shareholder through post along with a letter from Chairman and Chief Executive Officer to shareholders. sending summary of significant event like change of name and half-yearly results to each shareholder.5. Audit Committees and other Board Committees and other disclosures as required under the provisions of the revised Clause 49 of the Listing Agreement effective 1st January 2006. 1st April 2009 to 31st March 2010. the performance evaluation of all Directors under 'Fit & Proper' Criteria laid down by RBI and establishment of a Whistle Blower Policy.00 A. • • • • • 6. October 2009 and January 2010.

971 27.8.19.2002 & 14.14.2005 12.179 9.714 to 32. London EC4M 7LS.672 to 28.1998 & 1.47.2003 23. Panjara Pole.2007 28.22.2005 & 6.38. 10 Paternoster Square.41.53.28.171 to 23.2003 & 28.46.03. J.871 to 19.2005 & 27. and July 2007 are listed and traded on the London Stock Exchange.2002 & 5. Bombay Stock Exchange Limited.91.308 27.46. Ambawadi.947 27. National Stock Exchange of India Limited.47. “G” Block.18. Bandra (E).2.06.01.03.5.5.82. Kamdhenu Complex.7.7.18.09.26.11. Ahmedabad-380 015.5.19.671 4.171 to 19.2002 21.834 equity shares (LIC/ChrysCapital/Citicorp/Karur Vysya Bank) 4.700 equity shares (LIC/GIC/New India Assurance/ National Insurance) 3. • The Bank's Global Depositary Receipts (GDRs) issued during March and April 2005.2002 63134 Distinctive Nos.50.248 to 27.2.42.49.14.77.000 equity shares (CDCFS/SARF) 1.82. Name of Stock Exchange Ahmedabad Stock Exchange Limited Upto Public Issue-1998 4.33.38. UK.83.57.90.2005 31.No.170 13.26. Mumbai-400 051. Dalal Street.2007 & 17.91.45.004 25.68.18. Sahajanand College.2007 26.14.05.57.7.885 equity shares (ESOPs) 1 to 13.4.63.34. Stock Code LISTING DETAILS OF EQUITY SHARES OF AXIS BANK LIMITED Sr.68. Exchange Plaza. of Shares Listing/Trading date Code 19. Towers.2007 & 2.7.1998 5.779 35. C/1. Mumbai-400 001.09.12.62.934 equity shares (QIP issue) 3.2007 19.91.2007 & 22.129 equity shares (SUUTI/LIC/GIC/ New India Assurance/United India Insurance/ Oriental Insurance) 1.49.8.005 to 23.118 On various dates 112 .64. Opp.948 to 27.171 to 17.12.170 23.972 to 27.77. 1.870 11.18.53.42.713 32.47. Bandra-Kurla Complex. iii.8.50.6.14. Plot No.95.780 to 31.12.33.47.35.82. Ahmedabad Stock Exchange Limited.32.50.247 27.82.82.01. ii. P.466 equity shares representing the underlying shares to the Global Depository Receipts (GDRs) to the Investors Overseas issued during July 2007 2.59.28.4.170 17.180 to 35.309 to 35.8.• • Date of Book Closure Dividend Payment Date - 18th May 2009 to 1st June 2009 (both days inclusive) On or after 2nd June 2009 The Bank's shares are listed on the following Stock Exchanges: i.000 equity shares representing the underlying shares to the Global Depository Receipts (GDRs) to the Investors Overseas issued during March/April 2005 1.

14.53.713 27.06.19.14.7.41.14.03.5.09.09.8.68.170 13.2005 & 8.834 equity shares 4.934 equity shares (QIP issue) 3.000 equity shares 1.2007 113 .33.004 23.05.780 to 31.53.47.834 equity shares 4.2003 30.700 equity shares 3.82.57.03.46.12.82.4.68.91.95.09.82.01.11.180 to 35.50.6.2002 1.28.8.77.82.91.49.714 to 32.671 19.77.2002 & 12.2003 & 3.171 to 17.19.9.82. 2007 2.45.2007 16.11.466 equity shares representing the underlying shares to the Global Depository Receipts (GDRs) to the Investors Overseas issued during July.28.171 to 17.18.8.2002 & 20.2007 28.129 equity shares (SUUTI/LIC/GIC/ New India Assurance/United India Insurance/ Oriental Insurance) 1.68.671 16.5.179 10.82.934 equity shares (QIP issue) 1 to 13.7.714 to 32. 2007 2.33.18.972 to 27.18.2.1998 AXISBANKEQ 12.42.19.948 to 27.38.2003 & 28.64.26.170 13.59.57.2005 31.62.50.63.2007 28.000 equity shares representing the underlying shares to the Global Depository Receipts (GDRs) to the Investors Overseas issued during March/April 2005 1.8.14.713 32.32.947 27.03.700 equity shares 3.64.18.03.2007 & 1.46.171 to 23.6.780 to 31.14.49.47.2007 19.309 to 35.2005 16.2.1998 & 27. 248 to 27.22.91.2005 & 27.35.53.2005 18.1998 & 3.91.33.2005 31.41.870 19.971 27.118 On various dates 3.38.247 27.179 10.171 to 19.466 equity shares representing the underlying shares to the Global Depository Receipts (GDRs) to the Investors Overseas issued during July.2007 & 1.8.12.9.5.47.83.11.12.779 35.247 27.5.2003 5.2002 & 13.4.870 19.50.42.871 to 19.8.59.2002 27.2.18.14.53.8.000 equity shares representing the underlying shares to the Global Depository Receipts (GDRs) to the Investors Overseas issued during March/April 2005 1. Bombay Stock Exchange Limited Upto Public Issue-1998 4.90.8.46.8.170 23.49.34.308 27.672 to 28.2007 & 14.19.26.972 to 27.38.63.62.26.50.2002 & 20.91.46.000 equity shares 1.18.4.2002 31.09.01.948 to 27.82.5.170 17.004 23.82.3.46.50.47.82.1998 532215 9.885 equity shares (ESOPs) 1 to 13.171 to 19.2.8.01.2007 & 14.171 to 23.12.34.28.35.83.14.2005 & 12.2.32.2005 & 23.005 to 23.2007 & 20. National Stock Exchange of India Limited Upto Public Issue-1998 4.5.170 17.77.2002 27.

33.3.00 538.118 14.80 771.50 114 LOW (USD) 17.04.4.309 to 35.00 674.2005 25.42.7.25 18.308 New India Assurance/United India Insurance/ Oriental Insurance) 1.42. The stock touched a high of Rs.00 14.90 969.60 774.18.00 475.2007 On various dates The annual fees for 2009-10 have been paid to all the Stock Exchanges where the shares are listed.26.8.) LOW (Rs.00 801. ISIN Number Name of Depositories : : INE 238A01026 i.2007 & 20.170 23.25 • The Bank's share price has showed a decline with the Sensex correcting by 53% as a consequence of the general economic downturn. National Securities Depository Limited ii.8.18. Low during each month in the last financial year on NSE was as under: MONTH HIGH (Rs.46.10 13. Central Depository Services (India) Limited LISTING DETAILS OF GLOBAL DEPOSITARY RECEIPTS (GDRs) OF AXIS BANK LIMITED Sr. Name of Stock Exchange London Stock Exchange 4.90.06.80 562.95.3. 278.68.779 35.50.00 352.129 equity shares (SUUTI/LIC/GIC/ 32.70 19.90 807.01.90 in May 2008 and a low of Rs.20 562.25 380.47.50 23.00 444.90 14.28.) April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 October 2008 November 2008 December 2008 January 2009 February 2009 March 2009 949.2005 & 26. The high and low closing prices of the Bank's GDRs traded during 2008-09 on the London Stock Exchange are given below: MONTH April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 HIGH (USD) 23.672 to 28.82. 1.47.00.885 equity shares (ESOPs) 19.180 to 35.947 27.40 434.91.14.77.75 278.00 730.25 802.High.25 in March 2009 during the last twelve months.No.4.700 GDRs 2.3.45.2005 30.49.20 625.05.63 18. 969. 248 to 27.90 695.2007 Listing/Trading date Code US05462W1099 US05462W1099 Market Price Data: The price of the Bank's Share .41.38.00 17.871 to 19.300 GDRs 30.00 577.34 19.57.57.12.32.2005 & 22.00 13.971 27. • 1.25 586.466 GDRs 16.10 336.50 388.22.00 • .005 to 23.90.

Sr. The Bank ensures that all transfers are effected within a period of one month from the date of their lodgment.00 7.75 5.17. and consolidation. BSE and NSE. Manager (RIS) • Share Transfer System A Share Committee consisting of the Executive Director (Corporate Banking). 115 . According to a notification of the Securities and Exchange Board of India (SEBI). the equity shares of the Bank shall be traded compulsorily in Demat form by all investors w. of equity shares within one month of their lodgment.00 8. In terms of SEBI circular no. Varalakshmi. Certificates issued in this regard are placed before the Shareholders/Investors Grievance Committee and forwarded to ASE.413 2008-09 670 1. 040-23420815 to 23420824 Fax No. The certificates are forwarded to ASE.081 1. reconciliation of the total admitted equity share capital with the depositories and in the physical form with the total issued/paid-up equity capital of Axis Bank.50 9. sub-division. transmission.f. inter alia. President (Law) and the Company Secretary of the Bank has been formed looking after the matters relating to the transfer of shares.405 1. Jayaraman.20 6. with regard to. The Bank's Registrar and Share Transfer Agent. effecting transfer.61.50 11. Vithalrao Nagar Madhapur.925 As required under Clause 47(c) of the listing agreements entered into by Axis Bank with stock exchanges.550 2007-08 1.e. and other related matters. M/s Karvy Computershare Pvt. for the purpose of. BSE and NSE where the equity shares are listed and also placed before the Shareholders/Investors Grievance Committee. The Bank has already entered into agreements with the National Securities Depository Limited (NSDL) and the Central Depository Services India Limited (CDSL) so as to provide the members an opportunity to hold and trade shares of the Bank in electronic form. The resolutions passed by the Share Committee are confirmed at subsequent Board meetings. share transfers received a few days earlier. Hyderabad looks after the work relating to transfers. 17 to 24.October 2008 November 2008 December 2008 January 2009 February 2009 March 2009 • Registrar and Share Transfer Agent: 15. were transferred in the first week of April 2009.50 13. As at 31st March 2009.40. issue of duplicate share certificates in lieu of mutilated share certificates. 040-23420814 Contact Persons: Shri V. a Secretarial Audit is conducted on a quarterly basis by a practicing Company Secretary. 21st March 2000. Hyderabad-500 081 Phone No. Karvy Computershare Private Limited Unit : Axis Bank Limited Plot No. where the equity shares of Axis Bank are listed. a certificate is obtained every six months from a practicing Company Secretary. D&CC/FITTC/CIR-16 dated 31st December 2002. The number of equity shares of Axis Bank transferred during the last three years (excluding electronic transfer of shares in dematerialised form) is given below: 2006-07 Number of transfer deeds Number of shares transferred 1.00 6. K.00 11.21 8.10 8. Limited.25 M/s. GM (RIS)/Ms. inter alia.

00 10.06% 1. securities linked to 4.466 ordinary shares in the form of GDRs during July.77% 0.52.51.52% 0.51.429 % to total Shareholders Up to 5001 10001 20001 30001 40001 50001 100001 5000 10000 20000 30000 40000 50000 100000 Above 95.73.89 0.26% 0.76.78.621 10. of Shares 9.56.71.210 4.443 4.00% TOTAL As on 31st March 2009.19% 0.890 92.23.39.37.621. Nominal value of each equity share Total number of equity shares Distinctive numbers from Shareholding of Nominal Value Rs.47.34.26% 1.785 1.49% 94.77.47.40.140 3. The underlying equity shares have been listed and permitted to be traded on the NSE.13 0.91.96.09. • The Bank has issued in the course of an international offering to the investors overseas.36% 7.26 0. Rs. 35.804 81.200 1.930 3.91.25. of Shares 27.59.60.16 0.32.93% 3.000 ordinary shares in the form of Global Depositary Receipts (GDRs) during March/April. 116 .24. % to total Capital 3.18% 0.78.05.32.47. Share Amount Nominal Value In Rs.34. out of a total of equity shares of the Bank.466 equity shares representing the underlying shares to the Global Depositary Receipts (GDRs) to the investors overseas.47.00.10 0.90.450 38.35.24.00% 0.373 % to Total No.630 68.77.00.21% 1.95. The Bank has simultaneously issued 4.As Depositary for the Equity Shares Representing the Underlying Shares to the Global Depositary Receipts (GDRs) issued to the Investors Overseas FDI Route HSBC Financial Services (Middle East) Limited A/C HSBC IRIS Investments (Mauritius) Limited Orient Global Cinnamon Capital Limited ICICI Prudential Life Insurance Company Limited General Insurance Corporation of India DALI Limited The New India Assurance Company Limited • Distribution of shareholding as on 31st March 2009 : : : : Shareholders Numbers 1.08% Total nominal value Rs.847 3.331 43.000 and 1.118 1.305 376 196 142 242 596 1.53 2.180 Rs.90.41.831 2.570 1.820 65.83% 2. 2005 and 1.Shareholders of Axis Bank with more than one per cent holding at 31st March 2009 Name of the Shareholder Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) Life Insurance Corporation of India The Bank of New York .657 shares representing 99.725 1.62.180 359.76% No.59% 100.000 2.06. 2007 and the GDRs have been listed and traded on the London Stock Exchange.72.118 1 to 35.62.40 100.19% of total shares have been dematerialised.53 0.78.41.90.10/35.86.75.51. The numbers of outstanding GDRs as on 31st March 2009 were 2.77. BSE and the Ahmedabad Stock Exchange.05.92% 4.

Ellisbridge. Opp. Branch Locations given elsewhere Address for Correspondence: The Company Secretary Axis Bank Limited Registered Office 'Trishul'.• The Bank has not issued any ADRs/Warrants or any other convertible instruments. Phone No. 3rd Floor.oza@axisbank. Samartheshwar Temple.com • • 117 . Law Garden. : 079-26409322 Fax No.com/ rajendra. Ahmedabad-380 006.swaminarayan@axisbank. : 079-26409321 Email : p. the conversion of which will have an impact on equity shares.

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iii. and in the case of the consolidated cash flow statement. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.:048749 Place: Mumbai Date: 20 April 2009 121 . We did not audit the financial statement of 1 subsidiary whose financial statement reflects total assets of Rs. These financial statements are the responsibility of Axis Bank Limited's management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. 2006. 116. We have also relied on the un-audited financial statements of certain subsidiaries whose financial statements reflect total assets of Rs. and our opinion is based solely on the report of other auditor. For S. Mehta Partner Membership No.6 million and cash flow amounting to Rs. in the case of the consolidated profit and loss account. the cash flows for the year ended on that date.AXIS BANK LIMITED GROUP .11.AUDITORS' REPORT Auditors' Report on the Consolidated Financial Statements of Axis Bank Limited and its Subsidiaries To The Board of Directors Axis Bank Limited 1. ii. We conducted our audit in accordance with the auditing standards generally accepted in India.1 million for the year then ended. We believe that our audit provides a reasonable basis for our opinion. as well as evaluating the overall financial statement presentation. We have audited the attached consolidated balance sheet of Axis Bank Limited and its subsidiaries ('the Group') as at 31 March 2009.126.5 million as at 31 March 2009. An audit also includes assessing the accounting principles used and significant estimates made by management. Nil and cash flow amounting to Rs.R. An audit includes examining. evidence supporting the amounts and disclosures in the financial statements. in the case of the consolidated balance sheet. 86. 2. Batliboi & Co. We report that the consolidated financial statements have been prepared by Axis Bank Limited's management in accordance with the requirements of Accounting Standard 21 Consolidated Financial Statements notified by Companies (Accounting Standard) Rules. Our responsibility is to express an opinion on these financial statements based on our audit.2 million for the year then ended. 6. 4. total revenue of Rs. Based on our audit and on consideration of report of other auditor on separate financial statement and on the consideration of the un-audited financial statements and on the other financial information of the components. annexed thereto. of the state of affairs of the Group as at 31 March 2009. and to the best of our information and according to explanations given to us. revenue of Rs. on a test basis. Chartered Accountants per Viren H. and also the consolidated profit and loss account and the consolidated cash flow statement for the year ended on that date. 3. 5.114. The financial statement and other financial information of this subsidiary have been audited by other auditor whose report has been furnished to us.4 million as at 31 March 2009. we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: i. of the profit for the year ended on that date.

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.

998. B.193. Nayak Chairman & CEO per Viren H.888 9.689.717.166 139. in Thousands) Schedules referred to above form an integral part of the Consolidated Balance Sheet As per our report of even date For S.759.16) 3 4 5 3.240.941. in Thousands) As on 31-03-2008 (Rs.354. P. C.173. Vaish Director 125 .111 1.603. J. J.476.324.405 75.233. Mehta Partner Membership No.056.971. R.658 10.606 2.051 98.476.927 1 2 17(4.115 73.590.811 2.567. CAPITAL AND LIABILITIES Capital Reserves & Surplus Employees' Stock Options Outstanding (Net) Deposits Borrowings Other liabilities and provisions TOTAL ASSETS Cash and Balances with Reserve Bank of India Balances with banks and money at call and short notice Investments Advances Fixed Assets Other Assets TOTAL Contingent liabilities Bills for collection Significant Accounting Policies and Notes to Accounts 17 12 6 7 8 9 10 11 94. Oza Company Secretary Somnath Sengupta President Finance & Accounts Date: 20 April 2009 Place: Mumbai N.668.126 56.001.811 (Rs.092.095.858 37.868 876.514 815.873.573.893 12.228 1.615 83.762 99.192.663.450 56.663 27.971. Batliboi & Co. H.729 1.AXIS BANK LIMITED GROUP .054 1.576.584 51.095.651.663.BALANCE SHEET CONSOLIDATED BALANCE SHEET AS ON 31 MARCH 2009 As on 31-03-2009 Schedule No.577.097 83. Patil Director R.854. Chartered Accountants For Axis Bank Ltd.854 462.606 3.823.583. Singhal Director R.956.008 594.596 1. L.262 21.588.561 101.: 048749 P.614 338.

396 622 1.012 20. in Thousands) 108.4) 15 16 17(5.553.667.501.1.540 33.959.056 11.962 19.107 18. Batliboi & Co.331 4.516. in Thousands) (Rs.291. P.450.093.572 268.372.10/. Oza Company Secretary Somnath Sengupta President Finance & Accounts Date: 20 April 2009 Place: Mumbai N.050.6) (Face value Rs.737.80 30.591.913 119.372. J.331 44.AXIS BANK LIMITED GROUP .538. Chartered Accountants For Axis Bank Ltd. J.353 2.PROFIT AND LOSS ACCOUNT CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2009 Year ended Year ended 31-03-2009 31-03-2008 (Rs.198.420 10.834.834. C.205. B.489.501.1) 13 14 II 71.467.129.132 29. Vaish Director 126 . R. L.426 70. I INCOME Interest earned Other income TOTAL EXPENDITURE Interest expended Operating expenses Provisions and contingencies TOTAL III IV V CONSOLIDATED NET PROFIT ATTRIBUTABLE TO GROUP Balance in Profit & Loss account brought forward from previous year AMOUNT AVAILABLE FOR APPROPRIATION APPROPRIATIONS : Transfer to Statutory Reserve Transfer to Investment Reserve Transfer to Capital Reserve Transfer to General Reserve Proposed Dividend (includes tax on dividend) Balance in Profit & Loss account carried forward TOTAL VI EARNINGS PER EQUITY SHARE 17(5.933 20. Nayak Chairman & CEO per Viren H.353 17(5.54 Diluted 50.1.012 33.677.598 10. H. Mehta Partner Membership No.159 23.803 17. Singhal Director R. Patil Director R.96 As per our report of even date For S.104 77.per share) (Rupees) Basic 50.159.: 048749 P.289.1.018 Schedule No.010.389 2.418.232 28.231 383 4.321.380 15.294 137.438 21.242.319 15.21 Significant Accounting Policies and Notes to Accounts 17 Schedules referred to above form an integral part of the Consolidated Profit and Loss Account 31.215 88.

733 213.896 Year ended 31-03-2008 (Rs.418.534.331.275) (229.437) 1.AXIS BANK LIMITED GROUP .510) 40.500 (719.100) (227.436) (44.910 (95.998 65.016 3.814.586 (2.073) 45.375 288.410.826.357 297.883.356.247.200 1.314.002 927.296 (6.742 7.222 (7.132.397) 2.CASH FLOW STATEMENT CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2009 Year ended 31-03-2009 (Rs.647 3.784.284.113) 103.738) 126.127 (6.885.917 (26.764.356.000 6.500 719.398.055.657 Adjustments for: (Increase)/Decrease in investments (Increase)/Decrease in advances Increase/(Decrease) in borrowings Increase/(Decrease) in deposits (Increase)/Decrease in other assets Increase/(Decrease) in other liabilities & provisions Direct taxes paid Net cash flow from operating activities Cash flow from investing activities Purchase of fixed assets (Increase)/Decrease in Held to Maturity investments Proceeds from sale of fixed assets Net cash used in investing activities (3.343.881 1. in Thousands) 27.868.574 2.736.614.762 35.806.560) 399.348.155 151.949) (4.733) 654.918 (1.117) 14.459 977.111 (8.404 16.620) 61.417.965 24. in Thousands) Cash flow from operating activities Net profit before taxes Adjustments for: Depreciation & impairment provision on fixed assets Depreciation on investments Amortisation of premium on Held to Maturity investments Provision for Non Performing Advances/Investments (including bad debts) General provision on securitised assets Provision on standard assets Provision for loss in present value for agricultural assets Provision for wealth tax Loss on sale of fixed assets Provision for country risk Contingent provision against derivatives Provision for restructured assets Amortisation of deferred employee compensation 1.475 (11.802) (35.123) 1.226.078.372 (48.108 127 .896) 4.592.515.299) (91.900 2.077.383.177 1.322.883 82.902.

630 12.183. L. Vaish Director 128 .706.032 (1. Oza Company Secretary Somnath Sengupta President Finance & Accounts Date: 20 April 2009 Place: Mumbai N.197 Year ended 31-03-2008 (Rs. Patil Director R. H.980 (720. Perpetual debt and Upper Tier II instruments (net of repayment) Proceeds from issue of Share Capital Proceeds from Share Premium (net of share issue expenses) Payment of Dividend Net cash generated from financing activities Effect of exchange fluctuation translation reserve Net increase in cash and cash equivalents Cash and cash equivalents as at 1 April 2008 Cash and cash equivalents as at 31 March 2009 19. in Thousands) Cash flow from financing activities Proceeds from issue of Subordinated debt. J. C. R. B. Mehta Partner Membership No. Singhal Director R. in Thousands) Note : 1.954 375.923.: 048749 P.050.135 55.051 125.993) 16. As per our report of even date For S.789 44. Batliboi & Co. balances with banks and money at call & short notice (refer schedule 6 and 7 of the Balance Sheet).488. balances with Reserve Bank of India.802) 760.CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2009 Year ended 31-03-2009 (Rs.515.783 125.138.610 25.197 150.872. Chartered Accountants For Axis Bank Ltd.146 69.055.205 106. Nayak Chairman & CEO per Viren H.614 (2. J.087) 43.055.193.932 22. Cash and cash equivalents comprise of cash on hand & in ATM.257. P.

847.372. General Reserve Opening Balance Additions during the year 143.500.295 45.619.000 383 143.each fully paid up (Previous year .383 V.524.394 4.135 17.000 143.051 3.118 Equity Shares of Rs.000 3.SCHEDULES SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS ON 31 MARCH 2009 As on 31-03-2009 (Rs.384) 22.151.822 2. Capital Reserve Opening Balance Additions during the year 1.458)] SCHEDULE 2 .248.129 VI.289.012 83.790 5.5)] 17.000.000.000. Foreign Currency Translation Reserve Opening Balance Additions during the year [refer 17(4.361 VII. 10/. in Thousands) SCHEDULE 1 .394 13.396 13.10/.572 8.847.097 8.231 2.577.458) representing 27.each) Issued.357.AXIS BANK LIMITED GROUP .000. Statutory Reserve Opening Balance Additions during the year As on 31-03-2008 (Rs.621 GDRs (previous year 13.000 Equity Shares of Rs.861 59.467.10/.207 382.464 (472.068 III.524.000 5.000 Equity Shares of Rs.each (Previous year .893 143.207 II.540 98.677.898 (4. Share Premium Account Opening Balance Additions during the year Less: Share issue expenses 58.941.389 1.751 15.354.000 883.621 equity shares (previous year 13. 10/.956.RESERVES AND SURPLUS I.610 124.033.538.709.669 Equity Shares of Rs.732.751 106.509 268.262 129 .062. Subscribed and Paid-up capital 359.115.552) 58.each fully paid-up) [Included above are 27.590. Balance in Profit & Loss Account TOTAL 23.846.898 1.005. in Thousands) 5.732.033. Investment Reserve Account Opening Balance Additions during the year 622 622 IV.151.CAPITAL Authorised Capital 500.

97 crores] 130 .000.496 1.769. Term Deposits (i) From banks (ii) From others TOTAL B.55 crores) of Perpetual Debt and Rs.748.200.1.862 Bonds) of Rs.466.183 15.38 crores) of Upper Tier II instruments [Also refer 17(5.725 101. 5.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS ON 31 MARCH 2009 As on 31-03-2009 (Rs.180 35.729 As on 31-03-2008 (Rs.583. in Thousands) 13.015 18.886 50.770.000 16. Savings Bank Deposits III.583 234.450 876.office adjustments (net) Interest accrued Proposed dividend (includes tax on dividend) Subordinated Debt # Perpetual Debt and Upper Tier II instruments * Contingent provision against standard assets Others (including provisions) @ TOTAL # * @ 19.BORROWINGS I. 10.315.760 1.00. Nil [previous year Rs.00.641.173.102 36.450 863.149.561 1.450 II.000/.633 24.957. in Thousands) SCHEDULE 3 .795.183 10.899 439.180.78 crores (previous year Rs. Bills payable Inter .644.591 12.318 3.367. I.928 1. VIII. Demand Deposits (i) From banks (ii) From others II. IV. 10.847.228 22.246.519 56.562 2.627.737. Deposits of branches in India II.221. VI.732 199. Deposits of branches outside India TOTAL SCHEDULE 4 . I.240. in the nature of Non Convertible Debentures [Also refer 17(5.345. Borrowings in India (i) Reserve Bank of India (ii) Other Banks (iii) Other institutions & agencies Borrowings outside India TOTAL Secured borrowing included in I & II above SCHEDULE 5 .DEPOSITS A. II.098.31 crores (previous year Rs.891 75. V.329.497 258.540 Bonds (previous year 5.738 2.777. 1.OTHER LIABILITIES AND PROVISIONS I.321.370.822 611.378 99.561 8. 447.471.469.267 191.893 Bonds (previous year 15. 1.576.163 55.173. 71.385.773.537 71.762 - 5.500 3.689.2)] Represents Rs.801 4.859 876.511.193.405 - Represents Subordinated Debt of 4.893 Bonds) of Rs.641.148.3)] Includes contingent provision against derivatives of Rs.948 4.589.163.000/.1. 398.each.193. VII.000 18.824.824.each and 32.854.841.000 15. III.576.

461.807.293 73.908.BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I.093 10.834 78.777.703 44.528.998.126 15.845.645 51.292 94. Outside India (i) in Current Accounts (ii) in Other Deposit Accounts (iii) Money at Call & Short Notice TOTAL GRAND TOTAL (I+II) As on 31-03-2008 (Rs.839 42.806. Cash in hand & in ATM [including foreign currency notes] II.440 1.406.203. in Thousands) 15.369.853.414. in Thousands) SCHEDULE 6 .969 8.729. In India (i) Balance with Banks (a) in Current Accounts (b) in Other Deposit Accounts (ii) Money at Call and Short Notice (a) with banks (b) with other institutions TOTAL II.776 1.600 4.788.647 1.680.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS ON 31 MARCH 2009 As on 31-03-2009 (Rs.056.854 3.545 11.584 5.195.398 9.192.291 57.CASH AND BALANCES WITH RESERVE BANK OF INDIA I.390 38.614 131 .001.268.203.761 56. Balances with Reserve Bank of India : (i) in Current Account (ii) in Other Accounts TOTAL SCHEDULE 7 .130 31.

272.96 crores under the Liquidity Adjustment Facility (previous year Rs.551) 7.839.387. previous year Rs.524.618 130.871.385 332.INVESTMENTS I.886.96 crores) Net investments in India II.378 333.663) 6.86 crores (previous year Rs.95 crores (previous year Rs. 503.831.138.305 (958.850.311 8.705.Nil (previous year Rs. in Thousands) SCHEDULE 8 . 8.95 crores (previous year Rs.571.129 462.651.680 (685.003 390.138.008 Includes deposits with NABARD Rs.697 338.717.363 5.688.218. 7.781 (1. PTC etc.698 456.29 crores.396) 201. Investments in India in (i) Government Securities ## ** (ii) Other approved securities (iii) Shares (iv) Debentures and Bonds $ (v) Investment in Joint Ventures (vi) Others @ (Mutual Fund units. 3. NABARD deposits. 530.770.680 8. in Thousands) (Rs.77 crores) pledged for availment of fund transfer facility.360 6.000 31. 840.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.994) 454.Nil (previous year Rs.571.920 108.000.211. clearing facility and margin requirement Includes Repo Lending of Rs.75 crores) and net of Repo borrowing of Rs.66 crores) Includes securities costing Rs. Investments outside India in (i) Government Securities (including local authorities) (ii) Subsidiaries and / or joint ventures abroad (iii) Others Gross Investments outside India Less : Depreciation in the value of investments Net investments outside India GRAND TOTAL @ ## ** $ (I+II) 277.788. 175. 6.69 crores) and PTC's Rs.360 (52.000 15.935.1. Nil) in line with Reserve Bank of India requirements Includes securities costing Rs.389 7.) Gross Investments in India Less : Depreciation in the value of investments (includes provision for Non Performing Investments Rs.717 140.565. 943. CD / CP.979.06 crores) pledged for margin requirement 132 .085.514 6. 1.

233 3.677 31.490.906.722.327 815.889.567.074 9.151. Advances in India (i) Priority Sector (ii) Public Sector (iii) Banks (iv) Others TOTAL II.157 66.905.824 17.928. overdrafts and loans repayable on demand (iii) Term loans TOTAL B.801.689 577.567.642 213.809. (i) Advances outside India Due from banks (a) Bills purchased and discounted (b) Syndicated loans (c) Others TOTAL GRAND TOTAL $ && Includes advances against book debts Includes advances against L/Cs issued by Banks (ii) Due from others - Advances are net of floating provision.443 1.658 229.415 410.378 109.367 683. which has been adjusted based on management estimate 133 .060 482.181.888 480.581.090 53.888 165.950.206 815.759.476.648.658 696. in Thousands) (Rs.662.224 164.249 594.660 2.598 30.303 101.461 20.698.228 594.243 713.658 20.307 374.514 62.652. (i) Secured by tangible assets $ (ii) Covered by Bank/Government Guarantees && (iii) Unsecured TOTAL C.271.818 96.ADVANCES A.091.621. in Thousands) SCHEDULE 9 .432.244.236.725 540. I.888 (ii) Cash credits. (i) Bills purchased and discounted 24.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.670.628.759.567.246 594.621 185.759.439.011.291 [ C I + C II ] 815.114 276.

054 134 .717 575. CAPITAL WORK-IN-PROGRESS (including capital advances) GRAND TOTAL (I+II+III+IV) 765.039.823.05 crores) 13.322 391.324. in Thousands) SCHEDULE 10 .424 27.248. II.189 4.585 23.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.832 575. V.207.029 (117.03 crores (previous year Rs.000 (276.141 10.296 224.201.910 1.629 (61.787 9. Other fixed assets (including Furniture & Fixtures) At cost at the beginning of the year Additions during the year Deductions during the year Depreciation to date TOTAL III.596 9.188 18.564 8.866.261.474.873. VI.907 (242.660) 9.010) (124.216 500.603) (86.192) 414.649) (7.073 37. Premises At cost at the beginning of the year Additions during the year Deductions during the year Depreciation to date TOTAL II. 319.218.663 12.000 (765.858 765.284.130 SCHEDULE 11 . in Thousands) (Rs.815 3.930 337.691.732 9.175.FIXED ASSETS I.106 8.421) 773.426) 364. 457.078.429. Assets on Lease At cost at the beginning of the year Additions during the year Deductions during the year Depreciation to date Provision for impairment TOTAL IV. III. IV.160.916) (5.668. Inter-office adjustments (net) Interest accrued Tax paid in advance/tax deducted at source (net of provisions) Stationery and stamps Non banking assets acquired in satisfaction of claims Others # TOTAL # Includes deferred tax assets of Rs.710 577.930.973) 7.OTHER ASSETS I.290 (399.000) 10.753 9.

SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS ON 31 MARCH 2009 As on As on 31-03-2009 31-03-2008 (Rs.092. Guarantees given on behalf of constituents: In India Outside India V.383 2.369.303 159. Currency Swaps.620.271 12.204.963. endorsements and other obligations Other items for which the Group is contingently liable TOTAL 193.114 643.718.825 1. II.980 2.755. Acceptances. Claims against the group not acknowledged as debts Liability for partly paid investments Liability on account of outstanding forward exchange and derivative contracts : (a) Forward Contracts (b) Interest Rate Swaps.129 84.281.695 82.897 2.649.166 117.251.992 161.542 1.956. III.691 - 135 .815.603.565.465.068 1.000.408.618 2.588. VI. Forward Rate Agreement & Interest Rate Futures (c) Foreign Currency Options TOTAL IV.514 829.404.615 804. in Thousands) (Rs.502 1.487.CONTINGENT LIABILITIES I.547.202.244 7.529. in Thousands) SCHEDULE 12 .211.419.595 14.

900 1.766 71. VI. XII.702 589.137. Payments to and provisions for employees Rent.023.060 1.438 SCHEDULE 16 .294 20.177 7. in Thousands) 47. V.008 5.SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2009 Year ended 31-03-2009 SCHEDULE 13 .116 70. VII.677.454.035 2.101.527 2.496 28. IV.764 3.INTEREST EARNED I. exchange and brokerage Profit/(Loss) on sale of investments/derivative transactions (net) Profit on exchange transactions (net) Profit/(Loss) on sale of fixed assets (net) Income earned by way of dividends etc.962 463. V.489. XI.962 7.803 13.050. 62.366 2. Interest/discount on advances/bills Income on investments Interest on balances with Reserve Bank of India and other inter-bank funds Others TOTAL SCHEDULE 14 . Interest on deposits Interest on Reserve Bank of India/Inter-bank borrowings Others @ TOTAL @ Including interest on repos & subordinated debt 62. VII. 16.138 108. in Thousands) (Rs.90 crores) and profit on account of portfolio sell downs/securitisation Rs.95 crores (previous year Rs.076. telephones etc. III.950.633 108.595.902.108 6.285 4.907.958 1.246. Law charges 136 . II.980 2.816 (151.177 1.510 9. II.232 29.018 1. III.667.067 1.550.959.527.133.06 crores)] TOTAL SCHEDULE 15 .198.202.592.520. III. 44.81 crores (previous year Rs. 9.168 21.579.696 2.132 Year ended 31-03-2008 (Rs.767.INTEREST EXPENDED I.998 7.564 30. taxes and lighting Printing and stationery Advertisement and publicity Depreciation on bank's property (incl.711 6. IX.291.011. telegrams.156 1. allowance and expenses Auditor's fees and expenses Postage. IV.568 1.OPERATING EXPENSES I.858.OTHER INCOME I.566 17.424.036 (82.370 44.209.056 VIII.215 37.586 767.763. III.891.080. II. impairment provision) Directors' fees.515.593.713 1.363 497.159.737. II.051.649 52. from subsidiaries/companies and/or joint venture abroad/in India Lease rentals Miscellaneous income [including recoveries on account of advances/investments written off in earlier years Rs.944 21. Repairs and maintenance Insurance Other expenditure TOTAL 10. Commission.672 755.820 6.016) 74. IV.646 2. VI.647 816.762) 34.852.613 3.971 2. X.074.723 744.085.994 544.167 21.

* * incorporated during the current year Country of Incorporation India India India India India Ownership Interest 100.00% 100. Axis Trustee Services Ltd.00% 100. Any revisions to the accounting estimates are recognized prospectively in the current and future periods. liabilities. i. revenues and expenses and disclosure of contingent liabilities at the date of the financial statements.e. investments are classified at the date of purchase as: • • • Held for Trading ('HFT'). 1949.17 Significant accounting policies and notes forming part of the consolidated financial statements for the year ended 31 March 2009 (Currency : In Indian Rupees) 1 Principles of Consolidation The consolidated financial statements comprise the financial statements of Axis Bank Limited ('the Bank') and its subsidiaries. 2006 on a line-by-line basis by adding together the like items of assets. have been drawn up to the same reporting date as that of the Bank. and the unaudited financial statements of Axis Mutual Fund Trustee Ltd. 2006 to the extent applicable and current practices prevailing within the banking industry in India. and the said accounting standard is thus not applicable. and Axis Asset Management Company Ltd. and comply with generally accepted accounting principles. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. and Held to Maturity ('HTM') 137 . issued by the Institute of Chartered Accountants of India.* Axis Mutual Fund Trustee Ltd. Available for Sale ('AFS'). 3 Use of estimates The preparation of the financial statements. and Axis Trustee Services Ltd. 31 March 2009. Actual results could differ from those estimates.* Axis Asset Management Company Ltd. Consolidated Financial Statements. The Bank has made investment in a corporate entity wherein it holds more than 25% of the equity shares of that company. 2 Basis of preparation The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting. The consolidated financial statements present the accounts of Axis Bank Limited with its following subsidiaries: Name Axis Sales Ltd. unless otherwise stated.00% 100.. Financial Reporting of Interest in Joint Ventures.1 Significant accounting policies Investments Group Classification In accordance with the RBI guidelines. in conformity with generally accepted accounting principles. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. statutory requirements prescribed under the Banking Regulation Act. Such investment does not fall within the definition of a joint venture as per AS 27. All significant inter-company accounts and transactions are eliminated on consolidation.00% 100. Notified accounting standard by Companies (Accounting Standards) Rules. Axis Private Equity Ltd. 4 4. The Bank consolidates its subsidiaries in accordance with AS 21.00% The audited financial statements of Axis Sales Ltd. which together constitute 'the Group'. circulars and guidelines issued by the Reserve Bank of India ('RBI') from time to time and Notified accounting standard by Companies (Accounting Standards) Rules. income and expenditure. Axis Private Equity Ltd.

are classified as HTM securities. debentures and bonds. in case of bonds and debentures where interest is not received regularly. are valued at carrying cost. Investments that the Bank intends to hold till maturity are classified under HTM category. Commercial Paper and Certificate of Deposits being discounted instruments. The market/fair value for the purpose of periodical valuation of quoted investments included in the 'Available for Sale' and 'Held for Trading' categories is the market price of the scrip as available from the trades/quotes on the stock exchanges. In case the latest balance sheet is not available. Shares. Other approved securities. are valued at break-up value (without considering revaluation reserves. for which current quotations are not available or where the shares are not quoted on the stock exchanges. the price derived on the basis of YTM is discounted in accordance with the RBI guidelines. Investments made outside India are classified under three categories . the Bank may exceed the limit of 25% of total investments provided the excess comprises only of those securities which are eligible for complying with the Statutory Liquidity Ratio ('SLR') i. which do not qualify for SLR requirement. Investment in Joint Ventures and Others. Market value of investments where current quotations are not available. in case of preference shares where dividend is not received regularly. The book value of individual securities is not changed consequent to the periodic valuation of investments. debentures and preference shares where interest/dividend is received regularly. the market price is derived based on the YTM for Government securities as notified by FIMMDA/PDAI and suitably marked up for credit risk applicable to the credit rating of the instrument. In computing the investment ceiling for HTM portfolio for the aforesaid purpose. Any premium on acquisition over face value is amortized on a constant yield to maturity basis over the remaining period to maturity. under each category is ignored. investments in India are classified under six categories . which the Bank intends to hold till maturity. However.Government securities. All other investments are classified as AFS securities. the market price is derived by adding the appropriate mark up to the Base Yield Curve of Central Government Securities as notified by FIMMDA. The effective date means the last Friday of the second preceding fortnight for computation of the aforesaid limit. the valuation is in accordance with prudential norms for provisioning as prescribed by RBI. in case of unquoted bonds. except to the extent of depreciation previously provided. for disclosure in the balance sheet. market value of unquoted State Government securities is derived by applying the YTM method by adding the appropriate mark up above the yields of the Central Government Securities of equivalent maturity notified by the FIMMDA/PDAI at periodic intervals. in case of Central Government Securities. Investments not exceeding 25% of total investments. and equity shares. The net appreciation. As permitted by RBI.e.Government Securities. which are in the nature of advances are excluded. Treasury Bills. the shares are valued at Re 1 per company. SGL account transactions. Valuation Investments classified under the HTM category are carried at acquisition cost. The matrix for credit risk mark-up for various credit ratings along with residual maturity issued by FIMMDA is adopted for this purpose. Joint Ventures abroad and Others. Investments classified under the AFS and HFT category are marked to market. if any. As per RBI guidelines. Transfer of security between categories Transfer of security between categories of investments is accounted as per RBI guidelines. Net depreciation. within each category of investments is recognized in the profit and loss account. Units of mutual funds are valued at the latest repurchase price/net asset value declared by the mutual fund.Investments that are held principally for resale within a short period are classified as HFT securities. Debentures and Bonds. SLR securities and the total SLR securities held in HTM category are not more than 25% of its demand and time liabilities as on the effective date. 138 • • • • • • . price list of RBI or prices declared by Primary Dealers Association of India jointly with Fixed Income Money Market and Derivatives Association periodically. if any) which is ascertained from the company's latest balance sheet (which is not more than one year prior to the date of valuation). is determined as per the norms prescribed by the RBI as under: • market value of unquoted Government securities is derived based on the Prices/Yield to Maturity ('YTM') rate for Government securities of equivalent maturity as notified by Fixed Income Money Market and Derivatives Association of India ('FIMMDA') jointly with the Primary Dealers Association of India ('PDAI') at periodic intervals. if any. HFT securities. which remain unsold for a period of 90 days are reclassified as AFS securities as on that date.

high. Provisions. future servicing etc.25% to 2.25% in case of direct advances to agricultural and SME sectors and 0. However. DBOD. NPAs are classified into sub-standard. In respect of credit enhancements provided or recourse obligations (projected delinquencies. Loss on securitization is immediately debited to profit and loss account.2 Advances Axis Bank Ltd. transactions denominated in foreign currencies are accounted for at the rates prevailing on the date of the transaction. the Bank continues to service the loans transferred to the assignee/SPV. 25% of the normal provision requirement is held. 4. All profits/losses resulting from year-end revaluations are 139 . for which provisions are made in terms of a bucket-wise policy upon reaching specified stages of delinquency (90 days or more of delinquency) under each type of loan. Monetary foreign currency assets and liabilities are translated at the balance sheet date at rates notified by Foreign Exchange Dealers Association of India ('FEDAI').40% for all other advances is made as prescribed by RBI through its circular no.01. provision is made in accordance with the guidelines issued by RBI.00% as prescribed hitherto. 4. For exposures with contractual maturity of less than 180 days. the excess provision held as of 14 November 2008. Further. which satisfies the RBI prudential norms on provisioning. if any.83/21. provisions are held for individual country exposure (other than for home country). no provision is maintained on such country exposure. is not reversed in terms of RBI guidelines. Provisions for NPAs are made for sub-standard and doubtful assets at rates as prescribed by RBI with the exception for schematic retail advances.5 Foreign currency transactions Axis Bank Ltd. The Bank enters into purchase/sale of corporate and retail loans through direct assignment/Special Purpose Vehicle ('SPV'). For restructured/rescheduled assets. which requires the diminution in the fair value of the assets be provided at the time of restructuring. Loss assets and unsecured portion of doubtful assets are provided/written off as per the extant RBI guidelines. Gain on securitization transaction is recognized over the period of the underlying securities issued by the SPV.) accepted by the Bank. The countries are categorized into seven risk categories namely insignificant. depreciation in their value. is recognized in the profit and loss account.4 Securitization Axis Bank Ltd. low. A general provision @ 0. The difference between the clean price of the first leg and clean price of the second leg is recognized as interest income/expense over the period of the transaction. The Bank also provides credit enhancement in the form of cash collaterals and/or by subordination of cash flows to Senior Pass Through Certificate ('PTC') holders. doubtful and loss assets based on the criteria stipulated by RBI.3 Country risk Axis Bank Ltd. compared to their original cost.BC. NPAs are identified by periodic appraisals of the loan portfolio by management. very high. If the country exposure (net) of the Bank in respect of each country does not exceed 1% of the total funded assets. contingent liabilities and contingent assets.002/2008-09 effective from 15 November 2008. 4. moderate. post securitization. against provision ranging between 0. In respect of domestic operations. restricted and off-credit and provisioning made on exposures exceeding 180 days on a graded scale ranging from 0. appropriate provision/disclosure is made at the time of sale in accordance with AS 29. 4. Advances are classified into performing and non-performing advances ('NPAs') as per RBI guidelines and are stated net of specific provisions made towards NPAs. However. In addition to the provisions required to be held according to the asset classification status.Investments in joint ventures are categorized as HTM in accordance with RBI guidelines. In most cases.25% to 100%.BP. Repurchase and reverse repurchase transactions Repurchase and reverse repurchase transactions are accounted as outright sale and outright purchase respectively.

Outstanding forward exchange contracts (excluding currency swaps undertaken to hedge Foreign Currency Non-Resident ('FCNR') deposits which are not revalued) and spot exchange contracts are revalued at year end exchange rates notified by FEDAI. Axis Trustee Services Ltd. Exchange differences arising on foreign exchange transactions settled during the period are recognized in the profit and loss account of the period. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Dividend is accounted on an accrual basis when the right to receive the dividend is established. is recognized pro-rata over the period of the guarantee. Interest income is recognized on an accrual basis except interest income on non-performing assets. 140 . over the period when services are performed. Derivative transactions comprise of swaps and options.6 Derivative transactions Axis Bank Ltd. Trusteeship fees are recognized. Gain/loss on sell down of loans and advances through direct assignment is recognized at the time of sale. Hedged swaps/options are accounted for on an accrual basis.7 Revenue recognition Axis Bank Ltd. 4. endorsements and other obligations denominated in foreign currencies are disclosed at closing rates of exchange notified by FEDAI. 4. Axis Sales Ltd. Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transactions. Contingent liabilities on account of foreign exchange contracts/options. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Trading swaps/options are revalued at the balance sheet date with the resulting unrealized gain or loss being recognized in the profit and loss account and correspondingly in other assets or other liabilities respectively.recognized in the profit and loss account. Commission income is recognized on the basis of accrual when all the services are performed. Commission income on deferred payment guarantees. Realized gains on investments under HTM category are recognized in the profit and loss account and subsequently appropriated to capital reserve account in accordance with RBI guidelines. Initial acceptance fee is recognized as and when the 'Offer letter' for the services to be rendered is accepted by the customer. All other fee income is recognized upfront on its becoming due. Income and expenses are translated at the rates prevailing on the date of the transactions. guarantees. which are disclosed as contingent liabilities. on a straight line basis. Premium/discount on currency swaps undertaken to hedge FCNR deposits is recognized as interest income/expense and is amortized on a straight-line basis over the underlying swap period. which is recognized on receipt. The swaps/options are segregated as trading or hedge transactions. Losses are recognized in the profit and loss account. acceptances. Axis Private Equity Ltd. Financial statements of foreign branches classified as non-integral foreign operations are translated as follows: • • • Assets and liabilities (both monetary and non-monetary as well as contingent liabilities) are translated at closing rates notified by FEDAI at the year-end. All resulting exchange differences are accumulated in a separate 'Foreign Currency Translation Reserve' till the disposal of the net investments. The resulting gains or losses on revaluation are included in the profit and loss account in accordance with RBI/FEDAI guidelines.

Pursuant to this policy. The recoverable amount is the greater of the asset's net selling price and value in use. Depreciation on assets sold during the year is recognized on a pro-rata basis to the profit and loss account till the date of sale. After impairment. 5. 1956 are considered as the minimum rates. The rates of depreciation prescribed in Schedule XIV to the Companies Act. Assets given on operating lease are capitalized at cost.4. depreciation is provided on the revised carrying amount of the asset over its remaining useful life. The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. 141 . In assessing value in use. Capital work-in-progress includes cost of fixed assets that are not ready for their intended use and also includes advances paid to acquire fixed assets. If the management's estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter. Rentals received by the Bank are recognized in the profit and loss account on accrual basis.9 Lease transactions Axis Bank Ltd. then depreciation is provided at a higher rate based on management's estimate of the useful life/remaining useful life. Depreciation (including on assets given on operating lease) is provided on the straight-line method from the date of addition. the estimated future cash flows are discounted to their present value at the weighted average cost of capital.000 are fully depreciated in the year of installation. duties. There are no other obligations other than the contribution payable to the trust. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. Group Lease payments for assets taken on operating lease are recognized as an expense in the profit and loss account on a straightline basis over the lease term. taxes and incidental expenses related to the acquisition and installation of the asset. 4. telephone instruments Mobile phone Locker cabinets/cash safe/strong room door Assets at staff residence All other fixed assets All fixed assets individually costing less than Rs. Cost includes freight.10 Retirement and other employee benefits Group Provident Fund Retirement benefit in the form of provident fund is a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the fund are due.8 Fixed assets and depreciation Group Fixed assets are carried at cost of acquisition less accumulated depreciation less impairment. if any. Estimated useful life 20 years 20 years 3 years 5 years 4 years 8 years 2 years 16 years 5 years 10 years 4. depreciation has been provided using the following estimated useful lives: Asset Owned premises Assets given on operating lease Computer hardware Application software Vehicles EPABX.

Deferred tax assets and deferred tax liabilities are offset. Gratuity Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation using Projected Unit Credit Method made at the end of each financial year.11 Debit/Credit card reward points Axis Bank Ltd. the settlement obligations remain with the Bank.Axis Bank Ltd. although LIC/Metlife administer the scheme and determine the contribution premium required to be paid by the Bank. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employee's salary and the years of employment with the Bank. Provision for the said reward points is then made based on the actuarial valuation report as furnished by the said independent actuary. Superannuation Employees of the Bank are entitled to receive retirement benefits under the Bank's Superannuation scheme either under a cash-out option through salary or under a defined contribution plan. The Bank estimates the probable redemption of debit and credit card reward points using an actuarial method at balance sheet date by employing an independent actuary. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. deferred tax and fringe benefit tax charge. Through the defined contribution plan the Bank contributes annually a specified sum of 10% of the employee's eligible annual basic salary to LIC. Under this scheme. Long term compensated absences are provided for based on actuarial valuation. Actuarial gains/losses are immediately taken to profit and loss account and are not deferred. Actuarial gains/losses are immediately taken to profit and loss account and are not deferred. 142 . 4. The actuarial valuation is done. if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Axis Sales Ltd. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Actuarial gains/losses are immediately taken to profit and loss account and are not deferred. Leave Encashment Short term compensated absences are provided for based on estimates. 1961. Gratuity The Bank contributes towards gratuity fund (defined benefit retirement plan) administered jointly by the Life Insurance Corporation of India ('LIC') and Metlife Insurance Company Limited ('Metlife') for eligible employees. Superannuation contributions are recognized in the profit and loss account in the period in which they accrue. Liability with regard to gratuity fund is accrued based on actuarial valuation conducted by an independent actuary using the Projected Unit Credit Method as at 31 March each year. The actuarial valuation is carried out as per the Projected Unit Credit Method. The Bank provides leave encashment benefit (long term). Current year taxes and fringe benefit tax are determined in accordance with the Income-Tax Act. which is a defined benefit scheme based on actuarial valuation as at the balance sheet date conducted by an independent actuary. which undertakes to pay the lumpsum and annuity benefit payments pursuant to the scheme. at the end of each financial year. 4. using Projected Unit Credit Method.12 Taxation Group Income tax expense is the aggregate amount of current tax. Leave Encashment Short term compensated absences are provided for based on estimates.

Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The impact of changes in the deferred tax assets and liabilities is recognized in the profit and loss account. Deferred tax assets are recognized and reassessed at each reporting date, based upon management's judgement as to whether realization is considered as reasonably certain. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax asset can be realized against future profits. 4.13 Share issue expenses Axis Bank Ltd. Share issue expenses are adjusted from share premium account. 4.14 Earnings per share Group The Group reports basic and diluted earnings per share in accordance with AS 20, Earnings per Share, Notified accounting standard by Companies (Accounting Standards) Rules, 2006. Basic earnings per share is computed, by dividing the net profit after tax by the weighted average number of equity shares outstanding for the year. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earnings per share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at year end. 4.15 Cash and cash equivalents Group Cash and cash equivalents include cash on hand and in ATM, balances with Reserve Bank of India, balances with other banks and money at call and short notice. 4.16 Employee stock option scheme Axis Bank Ltd. The 2001 Employee Stock Option Scheme ('the Scheme') provides for grant of stock options on equity shares of the Bank to employees and Directors of the Bank. The Scheme is in accordance with the Securities and Exchange Board of India (SEBI) (Employees Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. The Bank follows the intrinsic value method to account for its stock based employee compensation plans as per the Guidance Note on 'Accounting for Employee Share-based Payments' issued by the ICAI. Options are granted at an exercise price, which is equal to/less than the fair market price of the underlying equity shares. The excess of such fair market price over the exercise price of the options as at the grant date is recognized as a deferred compensation cost and amortized on a straight-line basis over the vesting period of such options. The fair market price is the latest available closing price, prior to the date of the Board of Directors meeting in which options are granted / shares are issued, on the stock exchange on which the shares of the Bank are listed. If the shares are listed on more than one stock exchange, then the stock exchange where there is highest trading volume on the said date is considered. 4.17 Provisions, contingent liabilities and contingent assets Group A provision is recognized when the Group has a present obligation as a result of past event where it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. A disclosure of contingent liability is made when there is: • • a possible obligation arising from a past event, the existence of which will be confirmed by occurrence or non occurrence of one or more uncertain future events not within the control of the Group; or a present obligation arising from a past event which is not recognized as it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

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When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs. 5 Notes to Accounts

5.1.1 'Provisions and contingencies' recognized in the profit and loss account include: (Rs. in crores) For the year ended Provision for income tax - Current tax for the year - Deferred tax for the year Provision for fringe benefit tax 1,096.01 (137.98) 11.68 969.71 Provision for wealth tax Provision for non performing advances & investments (including bad debts written off and write backs) Provision for restructured assets Provision for loss in present value for agricultural assets Provision towards standard assets Provision for depreciation in value of investments Provision for securitized assets Contingent provision against derivatives Provision for country risk Total 0.28 732.21 65.46 0.69 105.50 107.80 (0.64) (71.97) 0.35 1,909.39 725.59 (159.25) 9.33 575.67 0.22 322.69 21.32 153.46 6.54 (0.11) 71.97 3.55 1,155.31 31 March 2009 31 March 2008

5.1.2 During the year ended 31 March 2009, the Bank raised subordinated debt of Rs. 1,700 crores, the details of which are set out below: Date of allotment 7 November 2008 28 March 2009 Period 120 months 120 months Coupon 11.75% 9.95% Amount Rs. 1,500.00 crores Rs. 200.00 crores

The Bank has not raised any subordinated debt during the previous year ended 31 March 2008. During the year ended 31 March 2009, the Bank redeemed subordinated debt of Rs. 66.10 crores, the details of which are set out below: Date of maturity 20 June 2008 21 September 2008 Period 69 months 69 months Coupon 8.80% 8.40% Amount Rs. 33.00 crores Rs. 33.10 crores

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During the year ended 31 March 2008, the Bank redeemed subordinated debt of Rs. 245.50 crores, the details of which are set out below: Date of maturity 28 April 2007 4 June 2007 27 June 2007 Period 85 months 66 months 63 months Coupon 11.75% 9.80% 9.30% Amount Rs. 100.00 crores Rs. 112.00 crores Rs. 33.50 crores

5.1.3 The Bank has not raised any hybrid capital during the year ended 31 March 2009. During the year ended 31 March 2008, the Bank raised hybrid capital in the form of Upper Tier II bonds qualifying as Tier II capital, the details of which are set out below: Type of Capital Upper Tier II Date of allotment 28 June 2007 Period 180 months Coupon 7.125% Amount (USD 60 million) Rs. 240.72 crores

5.1.4 Earnings Per Share ('EPS') The details of EPS computation is set out below: As at Basic and Diluted earnings for the year (Net profit after tax) (Rs. in crores) Basic weighted average no. of shares (in crores) Add: Equity shares for no consideration arising on grant of stock options under ESOP (in crores) Diluted weighted average no. of shares (in crores) Basic EPS (Rs.) Diluted EPS (Rs.) Nominal value of shares (Rs.) Dilution of equity is on account of 2,388,519 stock options (previous year 8,986,371). 5.1.5 Employee Stock Options Scheme ('the Scheme') In February 2001, pursuant to the approval of the shareholders at the Extraordinary General Meeting, the Bank approved an Employee Stock Option Scheme. Under the Scheme, the Bank is authorized to issue upto 13,000,000 equity shares to eligible employees. Eligible employees are granted an option to purchase shares subject to vesting conditions. The options vest in a graded manner over 3 years. The options can be exercised within 3 years from the date of the vesting. Further, in June 2004, June 2006 and June 2008, pursuant to the approval of the shareholders at Annual General Meeting, the Bank approved an ESOP scheme for additional 10,000,000, 4,800,000 and 7,970,000 options respectively. 26,616,345 options have been granted under the Scheme till the previous year ended 31 March 2008. On 21 April 2008, the Bank granted 2,677,355 stock options (each option representing entitlement to one equity share of the Bank) to its employees and the Chairman & CEO. These options can be exercised at a price of Rs. 824.40 per option. The Bank has not recorded any compensation cost on options granted during the current year ended 31 March 2009 and the previous year ended 31 March 2008, as the exercise price was more than or equal to the quoted market price of underlying equity shares on the grant date. The Bank recorded a compensation cost of Rs. 1.39 crores on options granted during the year ended 31 March 2002, Rs. 1.99 crores on options granted during the year ended 31 March 2004, Rs. 24.21 crores on options granted during the year ended 31 March 2005, based on the excess of the quoted market price of the underlying equity shares as of the date of the grant over the exercise price. The compensation cost is amortized over the vesting period. 31 March 2009 1,812.93 35.87 0.24 36.11 50.54 50.21 10.00 31 March 2008 1,059.14 33.31 0.90 34.21 31.80 30.96 10.00

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90 39. Fair Value Methodology Applying the fair value based method in Guidance Note on 'Accounting for Employee Share-based Payments' the impact on reported net profit and EPS would be as follows: 31 March 2009 Net Profit (as reported) (Rs.10 to 824.55 824.794.90 398.47 146 .082.) 250.77 to 468.812.62 39. in crores) Earnings per share: Basic (in Rs.64 1.19 3.57 2.40 Weighted average exercise price (Rs.93 (86.63 31 March 2008 1.986.68 to 468.40 97.974 5.059.295.353) 12.40 39.54.729. in crores) Add: Stock based employee compensation expense included in net income (Rs.51 367.87) 987.14 0.87 320.034 The weighted average share price in respect of options exercised during the year was Rs. Stock option activity under the Scheme for the year ended 31 March 2008 is set out below: Options outstanding Range of exercise prices (Rs.872.77 199.57 2.794.77 to 468.21 47.76 97.14 468.20 Weighted average remaining contractual life (Years) 3.) As reported Proforma 50.13 31.90 39.77 to 468.86 50.95 459.340 (820.96 28.) 29.380) (2.30) 1.449) 13.90 39.68 to 319.90 824.00 468.805) (395) (1.088 The weighted average share price in respect of options exercised during the year was Rs.90 39.77 to 468. in crores) Net Profit (Proforma) (Rs.77 to 468.677.) As reported Proforma Earnings per share: Diluted (in Rs.268 2.77 to 824.86 Outstanding at the beginning of the year Granted during the year Forfeited during the year Expired during the year Exercised during the year Outstanding at the end of the year Exercisable at the end of the year 12.616.56 Weighted average remaining contractual life (Years) 3.) 367.40 232.77 to 824.55 250.40 466.63.90 Weighted average exercise price (Rs.10 39.90 39.80 29.77 29.249) (1.355 (322.) 39.95 1. in crores) Less: Stock based employee compensation expense determined under fair value based method (proforma) (Rs.Stock option activity under the Scheme for the year ended 31 March 2009 is set out below: Options outstanding Range of exercise prices (Rs.54 48. 765. 709.82 30.910 6.62 299.268 2.12 Outstanding at the beginning of the year Granted during the year Forfeited during the year Expired during the year Exercised during the year Outstanding at the end of the year Exercisable at the end of the year 9.726.852.20 (71.

33% 44. other direct overheads and allocated expenses.BC.21% to 8. Retail Banking.The fair value of the options is estimated on the date of the grant using the Black-Scholes options pricing model.96% to 8. Includes corporate relationships not included under Retail Banking.No. Dividend relating to these shares has not been recorded in the current year. The measure of volatility used in the Black-Scholes options pricing model is the annualized standard deviation of the continuously compounded rates of return on the stock over a period of time. The principal activities of these segments are as under: Segment Treasury Principal Activities Treasury operations include investments in sovereign and corporate debt. card services. ATM services.81/21. personnel costs.1. For calculating volatility.04. Retail Banking activities also include liability products.20% to 51. derivative trading and foreign exchange operations on the proprietary account and for customers and central funding.63% 31 March 2008 1.251 employee stock options after the previous year end and record date for declaration of dividend for the year ended 31 March 2008. 310. personnel costs. These segments have been identified and based on RBI's revised guidelines on Segment Reporting issued on 18 April 2007 vide Circular No. 0. corporate advisory services. project appraisals. 0. the daily volatility of the stock prices on the National Stock Exchange. other direct overheads and allocated expenses. placements and syndication. if approved at the ensuing Annual General Meeting.22% 2-4 years 7. Retail Banking Corporate / Wholesale Banking Other Banking Business Revenues of the Treasury segment primarily consist of fees and gains or losses from trading operations and interest income on the investment portfolio. financial advisory services and NRI services. ATM interchange fees and cards products. Appropriation to proposed dividend during the year ended 31 March 2009 includes dividend of Rs.37% 2-4 years 8. with the following assumptions: 31 March 2009 Dividend yield Expected life Risk free interest rate Volatility 1.21% Volatility is the measure of the amount by which a price has fluctuated or is expected to fluctuate during a period.7 Segmental reporting The business of the Bank is divided into four segments: Treasury. Constitutes lending to individuals/small businesses subject to the orientation. BP. and Other Banking Business. 5.50 crores (previous year Rs. 5 crores as defined by RBI. product and granularity criterion and also includes low value individual exposures not exceeding the threshold limit of Rs. These shares will be eligible for full dividend for the year ended 31 March 2009. Expenses of the Corporate/Wholesale Banking and Retail Banking segments primarily comprise interest expense on deposits and funds borrowed from other internal segments.65% to 48. All banking transactions not covered under any of the above three segments. trading operations. Revenues of the Retail Banking segment are derived from interest earned on loans classified under this segment and fees for banking and advisory services.54 crores) paid pursuant to exercise of 709.26. depository. infrastructure and premises expenses for operating the branch network and other delivery channels. DBOD. capital market related services and cash management services. internet banking. corresponding with the expected life of the options has been considered.1. over a period prior to the date of grant. Corporate/Wholesale Banking.01% 45. The principal expenses of the segment consist of interest expense on funds borrowed from external sources and other internal segments. 147 . equity and mutual funds. 5. management of public issue.018/2006-07.6 Dividend paid on shares issued on exercise of stock options The Bank may allot shares between the balance sheet date and record date for the declaration of dividend pursuant to the exercise of any employee stock options. The weighted average fair value of options granted during the year ended 31 March 2009 is Rs. premises expenses. Revenues of the Corporate/Wholesale Banking segment consist of interest and fees earned on loans given to customers falling under this segment and fees arising from transaction services and merchant banking activities such as syndication and debenture trusteeship.

which is based on historical matched maturity and market-linked benchmarks.358.15 137. has been used.601.93 13.54 196.41 2.31 595.96 7.68) 2.71 5.40) (5.80 3.040.02 66.78 57. All activities in the Bank are segregated segment-wise and allocated to the respective segment.41 27.53 398.782.905.24 1.22 10.74 356.331. in crores) 31 March 2009 Treasury Corporate/ Wholesale Banking Retail Banking Other Banking Business Total Segment Revenue Gross interest income (external customers) Other income Total income as per profit and loss account Add/(less) inter segment interest income Total segment income Less: Interest expense (external customers) Less: Inter segment interest expenses Less: Operating expenses Operating profit Less: Provision for non performing assets/Others Segment result Less: Provision for Tax Net Profit Segment assets Segment liabilities Net assets Fixed assets additions during the year Depreciation on fixed assets during the year 3.495.43 2. Segment result includes revenue as reduced by interest expense and operating expenses and provisions.316.55 62.873.635.402.92 20.42 4.11 2.99 25.39 16.915.200.30 6.269.24 1.93 459.28 (5.50 459.697. Operating expenses other than those directly attributable to segments are allocated to the segments based on an activity-based costing methodology.53) 4. the funds transfer pricing mechanism presently followed by the Bank.816.290.745.96 1.57 736.55 (3.474.87 30.14 42.29 190.502.29 190.963.240.68 2.722.40) (5. Segment-wise income and expenses include certain allocations.44) (5.45 183.782.60 7.646.115.92 34. for that segment.317.85 3.04 20.40) (5.495.003.735.Segment income includes earnings from external customers and from funds transferred to the other segments.363.40) 0.51 1.92 2.276.194.179.66 965. Inter segment interest income and interest expense represent the transfer price received from and paid to the Central Funding Unit (CFU) respectively.829.133.675.93 147.21 748.71 1.148.54 1.14 1.65 1.280.58 (17.65 10. Geographical segment disclosure is not required to be made since the operations from foreign branches are less than the prescribed norms.64 969.669.873.139.22 148 . if any.00 6.207.90 808.111.07 13. For this purpose.58 863.08 992.18 4.796.11 232.51 3. Segmental results are set out below : (Rs.32 20.812.54 2.32 939.

30 7.664.345.83 22.64 1.260.719.099.91 1.751.30 1.44 4.53 8.84 12.96) 0.48) (9.44 139.083.28) 1.(Rs.1. 149 .166.97 1. and The Oriental Insurance Co.48 1.248. Nayak (Chairman & CEO) Based on RBI guidelines.01 2.778. in crores) 31 March 2008 Treasury Corporate/ Wholesale Banking Retail Banking Other Banking Business Total Segment Revenue Gross interest income (external customers) Other income Total income as per profit and loss account Add/(less) inter segment interest income Total segment income Less: Interest expense (external customers) Less: Inter segment interest expenses Less: Operating expenses Operating profit Less: Provision for non performing assets/Others Segment result Less: Provision for Tax Net Profit Segment assets Segment liabilities Net assets Fixed assets additions during the year Depreciation and impairment provision on fixed assets during the year 5.14 109.81 575. P.604.45 579.93 661.33 21.98 1.419.38 12.732.08 1.03 1.491.27 45. • • • Administrator of the Specified Undertaking of the Unit Trust of India (UTI-1) Life Insurance Corporation of India (LIC) General Insurance Corporation and four PSUs . United India Insurance Co. details of transactions with Joint Venture Companies are not disclosed since there is only one entity / party in this category.46 3.50 439..268.98 640.36 3.584.214.00 19. National Insurance Co.10 460.814.50 1.92 8.18) 1.49 159.433.52) 12.704.00 242.682.51 4.34 8.162.52) (9.8 Related party disclosure The related parties of the Bank are broadly classified as: a) Promoters The Bank has identified the following entities as its Promoters.784.New India Assurance Co. c) Joint Venture • Bussan Auto Finance India Private Limited Based on RBI guidelines.96 (11.795.349.64 659.416.991.28 1. Ltd.09 684.716.520.08 96.74 364.22 (22.57 953.49 159..91 (12.33 124.867. Ltd. Ltd.63 31.88 2.97 47.949.801.11 342.30 b) Key Management Personnel • Dr.37 100.824.36 338.33 2. details of transactions with Key Management Personnel are not disclosed since there is only one entity / party in this category.00 12.073. 2. J.81 1.256.634.53 18.719.67 1.71 2. Ltd.33 240.02 40.44 (21.64 3.374.566.88 2.171.84 338.33 4.98 9.774.190.005.059.

94 1.366.86 24.75 0.15 0. in crores) Items/Related Party Dividend Paid Interest Paid Interest Received Investment of Related Parties in the Bank Purchase / Sale of Investments Receiving of Services Rendering of Services The balances payable to/receivable from the related parties of the Bank as on 31 March 2008 are given below: (Rs.13 1.10 0.22 69.The details of transactions of the Bank with its related parties during the year ended 31 March 2009 are given below: (Rs.00 1.73 5.00 The balances payable to/receivable from the related parties of the Bank as on 31 March 2009 are given below: (Rs.23 44.500.27 0.903. in crores) Items/Related Party Dividend Paid Interest Paid Interest Received Investment of Related Parties in the Bank Investment in Subordinated Debt/Hybrid Capital of the bank Redemption of Subordinated Debt Sale of Investments Receiving of Services Rendering of Services Other Reimbursements to Related Parties Promoters 91.10 131.13 0.00 The details of transactions of the Bank with its related parties during the year ended 31 March 2008 are given below: (Rs.00 449.00 The maximum balances payable to/receivable from the related parties of the Bank as on 31 March 2009 are given below: (Rs.740.68 0. in crores) Items/Related Party Deposits with the Bank Placement of Deposits Advances Investment of Related Parties in the Bank Repo Borrowing Guarantees Investment in Subordinated Debt/Hybrid Capital of the Bank Promoters 3.36 .20 39.00 Promoters 54.14 152. in crores) Items/Related Party Deposits with the Bank Placement of Deposits Advances Investment of Related Parties in the Bank Guarantees Investment in Subordinated Debt/Hybrid Capital of the Bank 150 Promoters 2.00 1.27 0.23 39. in crores) Items/Related Party Deposits with the Bank Placement of Deposits Advances Investment of Related Parties in the Bank Guarantees Investment in Subordinated Debt/Hybrid Capital of the Bank Promoters 3.08 0.15 152.00 260.01 152.877.366.18 13.00 20.05 1.63 106.07 39.740.

Later than five years There are no provisions relating to contingent rent.13 432.28 (0.12 55.06 41.22) (123.Not later than one year . staff quarters. (Rs.44 3.44 3.Later than five years Total of minimum lease payments recognized in the profit and loss account for the year There are no provisions relating to contingent rent.09 (0.83 1.08 2.42 12.857.30 . (Rs.50 1.99 31 March 2008 219.1.60 12.00 389.97 381.Not later than one year .51 31 March 2008 76.12 76. in crores) Items/Related Party Deposits with the Bank Placement of Deposits Advances Investment of Related Parties in the Bank Repo Borrowing Guarantees Investment in Subordinated Debt/Hybrid Capital of the Bank 5.67 638. in crores) 31 March 2009 Gross carrying amount at the beginning of the year Accumulated depreciation as at the end of the year Accumulated impairment losses as at the end of the year Depreciation for the year Impairment losses for the year Minimum lease payments receivable at the end of the year Future lease rentals receivable as at the end of the year: .07 Promoters 2. electronic data capturing machines and IT equipment.82) 67.00 Particulars At cost at the beginning of the year Additions during the year Deductions during the year Accumulated depreciation as at 31 March Closing balance as at 31 March 151 31 March 2009 161.76 31 March 2008 120. 5.52 39.50 27.97 968.51 308. in crores) 31 March 2009 Future lease rentals payable as at the end of the year: .10 Other Fixed Assets (including furniture & fixtures) The movement in fixed assets capitalized as application software is given below: (Rs. in crores) 324.Later than one year and not later than five years .98 154.22) (93.1. There are no undue restrictions or onerous clauses in the agreements.The maximum balances payable to/receivable from the related parties of the Bank as on 31 March 2008 are given below: (Rs.47 11.01 196.Later than one year and not later than five years . Disclosure in respect of assets taken on operating lease Operating lease comprises leasing of office premises/ATMs. The terms of renewal/purchase options and escalation clauses are those normally prevalent in similar agreements.25 592.9 Leases Disclosure in respect of assets given on operating lease Operating lease comprises leasing of power generation equipments.23) 92. The terms of renewal/purchase options and escalation clauses are those normally prevalent in similar agreements.32 57.

06 457.1.79 (Rs.5.48 (29. 28.64 5. Gratuity Group The following tables summarize the components of net benefit expenses recognized in the profit and loss account and funded status and amounts recognized in the balance sheet for the Gratuity benefit plan.11 The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under: (Rs.12 crores as liability for leave encashment for the year ended 31 March 2009 (previous year Rs.1.12 Employee Benefits Group Provident Fund The contribution to the employee's provident fund of the Group amounted to Rs.71 31 March 2009 307.11 crores).81) 23. 30.05 152 .52) 6.27 0.65 128. Axis Bank Ltd. Profit and Loss Account Net employee benefit expenses (recognized in payments to and provisions for employees) 31 March 2009 Current Service Cost Interest on Defined Benefit Obligation Expected Return on Plan Assets Net Actuarial Losses/(Gains) recognized in the year Past Service Cost Losses/(Gains) on "Curtailments & Settlements" Total included in "Employee Benefit Expense" Actual Return on Plan Assets Balance Sheet Details of provision for gratuity (Rs.86 crores for the year ended 31 March 2009 (previous year Rs.38 16.15 (0. 45.76 319.57 101. in crores) 31 March 2008 3.76 12.46 (47.47 crores).03 31 March 2008 205. in crores) 31 March 2009 Present Value of Funded Obligations Fair Value of Plan Assets Present Value of Unfunded Obligations Unrecognized Past Service Cost Net Liability 36.78) 5. Leave Encashment The Bank charged an amount of Rs.98 0.56 9.65 31 March 2008 23.10 35.43 1.83) 6. 7.82) 18.03 (36. Superannuation The Bank contributed Rs.63 2. in crores) As at Deferred tax assets on account of provisions for doubtful debts Deferred tax assets on account of amortisation of HTM investments Deferred tax assets on account of provision for retirement benefits Deferred tax assets on account of contingent provision against derivatives Deferred tax liability on account of depreciation and impairment on fixed assets Other deferred tax assets Net deferred tax asset/(liability) 5.87) 5.20 crores). 22.70 24.11 (1. 8.77 crores to the employee's superannuation plan for the year ended 31 March 2009 (previous year Rs.42 (17.

42 5.17) 17.11 6.42 17.83 31 March 2008 11.70) 36. in crores) 31 March 2009 Change in Defined Benefit Obligation Opening Defined Benefit Obligation Current Service Cost Interest Cost Actuarial Losses/(Gains) Liabilities Extinguished on Curtailment Liabilities Extinguished on Settlements Liabilities Assumed on Acquisition Exchange Difference on Foreign Plans Benefits Paid Closing Defined Benefit Obligation Changes in the fair value of plan assets are as follows: (Rs.64) 3.42 153 .30 (0.39 (0.64 Changes in the present value of the defined benefit obligation are as follows: (Rs.87 (0.00% 31 March 2008 100.88) 17.Insurer Managed Funds 100.66) 3.78 1.70) 29.43 1.65 5.78 (5.96 (0.02 (0.33 3.48 31 March 2008 14.73) 31 March 2008 23.57 (0. in crores) 31 March 2009 Defined Benefit Obligations Plan Assets Surplus/(Deficit) Experience Adjustments on Plan Liabilities Experience Adjustments on Plan Assets Axis Bank Ltd.15 5.Amounts in Balance Sheet Liabilities Assets Net Liability 6.78 23.03 (0.73) 11.65 6.52 (0.17) 6.88) 23.83 (6.63 2.93 0.00% 36.64 5. 31 March 2009 The major categories of plan assets as a percentage of fair value of total plan assets . in crores) 31 March 2009 Change in the Fair Value of Assets Opening Fair Value of Plan Assets Expected Return on Plan Assets Actuarial Gains/(Losses) Assets Distributed on Settlements Contributions by Employer Assets Acquired due to Acquisition Exchange Difference on Foreign Plans Benefits Paid Closing Fair Value of Plan Assets Experience adjustments (Rs.49 29.

00% 31 March 2008 The estimates of future salary increases.31 March 2009 Principal actuarial assumptions at the balance sheet date: Discount Rate Expected rate of Return on Plan Assets Salary Escalation Rate Employee Turnover . 6.a. a best estimate of the contribution is not determinable.00% p.00% p. 30.00% 31 March 2008 7.a.50% p.21 to 44 (age in years) .00% p.00% p. 6. take account of inflation.a. 7.95% p. 30.00% p. 7.70% p. 7.a. As the contribution expected to be paid to the plan during the annual period beginning after the balance sheet date is based on various internal/external factors.a. 31 March 2008 100. 10.a.00% The estimates of future salary increases considered take into account the inflation. 10.44 to 64 (age in years) 6.50% p.a.95 154 .00% 31 March 2009 Principal actuarial assumptions at the balance sheet date: Discount Rate Expected rate of Return on Plan Assets Salary Escalation Rate Employee Turnover 6. promotion and other relevant factors.a. 7.00% p. 6. 5.51 31 March 2008 1.13 Provisions and contingencies a) Movement in provision for frauds included under other liabilities is set out below: (Rs.25) 4. The expected rate of return on plan assets is based on the average long-term rate of return expected on investments of the Fund during the estimated term of the obligations.a. 7. 31 March 2009 The major categories of plan assets as a percentage of fair value of total plan assets-Insurer Managed Funds 100.50% p.44) 4. The Company expects to contribute Rs.00. The overall expected rate of return on assets is determined based on the market prices prevailing on that date.50% p. promotion and other relevant factors.a. considered in actuarial valuation.000 as gratuity in the year 2009-10. Axis Sales Ltd.47 (0. such as supply and demand in the employment market.a. applicable to the period over which the obligation is to be settled.a. 6. seniority.00% 1.a.55% p.a.1.73 3.30% p.00% 1. in crores) 31 March 2009 Opening balance at the beginning of the year Additions during the year Reductions on account of payments during the year Reductions on account of reversals during the year Closing balance at the end of the year 4. 3.95 (0. seniority.

73 31 March 2008 0. d) Acceptances.11) 3. based on ruling spot rates.18) 5.10 155 .24 4.94 0. A foreign currency option is an agreement between two parties in which one grants to the other the right to buy or sell a specified amount of currency at a specific price within a specified time period or at a specified future time. Forward Rate Agreements are agreements to pay or receive a certain sum based on a differential interest rate on a notional amount for an agreed period.24 31 March 2008 5.89 (0.14 Description of contingent liabilities: a) Claims against the Group not acknowledged as debts These represent claims filed against the Group in the normal course of business relating to various legal cases currently in progress. endorsements and other obligations These include documentary credit issued by the Bank on behalf of its customers and bills drawn by the Bank's customers that are accepted or endorsed by the Bank. Interest rate swaps are commitments to exchange fixed and floating interest rate cash flows. These also include demands raised by income tax and other statutory authorities and disputed by the Group.23 5.1.10 (3. exchange-traded contracts that represent a pledge to undertake a certain interest rate transaction at a specified price. in crores) 31 March 2009 Opening provision at the beginning of the year Provision made during the year Reductions during the year Closing provision at the end of the year d) Movement in provision for debit card reward points is set out below: (Rs. interest rate futures and forward rate agreements on its own account and for customers.94 3. currency options/swaps. 4. on a specified future date. Forward exchange contracts are commitments to buy or sell foreign currency at a future date at the contracted rate.01) 5. in crores) 31 March 2009 Opening balance at the beginning of the year Additions during the year Reductions during the year Closing balance at the end of the year c) Movement in provision for credit card reward points is set out below: (Rs.10) 31 March 2008 3. Guarantees represent irrevocable assurances that the Bank will make payments in the event of the customer failing to fulfill its financial or performance obligations.b) Movement in provision for credit enhancements on securitized assets is set out below: (Rs. Currency swaps are commitments to exchange cash flows by way of interest/principal in two currencies.21 (0. Interest Rate Futures are standardized. c) Guarantees given on behalf of constituents As a part of its banking activities.80 (1. in crores) 31 March 2009 Opening provision at the beginning of the year Provision made during the year Reductions during the year Closing provision at the end of the year 5. the Bank issues guarantees on behalf of its customers to enhance their credit standing. b) Liability on account of forward exchange and derivative contracts The Bank enters into foreign exchange contracts.

L. B. where necessary to conform to current years presentation. J. Nayak Chairman & CEO P. 5. C.e) Other items for which the Group is contingently liable Other items represent outstanding amount of bills rediscounted by the Bank. For Axis Bank Ltd. Oza Company Secretary Somnath Sengupta President Finance & Accounts N. P. Vaish Director Date: 20 April 2009 Place: Mumbai 156 . H. Singhal Director R.1. Patil Director R.15 Comparative Figures Previous year figures have been regrouped and reclassified. estimated amount of contracts remaining to be executed on capital account and commitments towards underwriting and investment in equity through bids under Initial Public Offering (IPO) of corporates as at the year end. J.

4. The consolidated financial statements of the Bank comprise the financial statements of Axis Bank Limited and its subsidiaries that together constitute the 'Group'. venture capital funds and off shore funds Trusteeship services Asset Management 100% 100% 100% Fully consolidated Fully consolidated Fully consolidated Axis Mutual Fund Trustee Ltd. issued by the Institute of Chartered Accountants of India. liabilities. The Lower Tier-2 bonds have an original maturity between 5 to 10 years. Axis Bank has issued debt instruments that form a part of Tier-1 and Tier-2 capital. Bussan Auto Finance India Private Ltd. Name of the entity Axis Sales Ltd. Tier-1 capital of the Bank consists of equity capital. The interest on lower Tier-2 capital instruments is payable semi-annually or annually.DISCLOSURES UNDER THE NEW CAPITAL ADEQUACY FRAMEWORK (BASEL II GUIDELINES) I. Some of the Tier-1 bonds have a step-up clause on interest payment ranging up to 100 bps. Trusteeship 100% Fully consolidated Holding 100% Basis of Consolidation Fully consolidated rd II. The Upper Tier-2 bonds have an original maturity of 15 years with a call option after 10 years. the Bank's investment in the equity capital of the wholly-owned subsidiaries is deducted. Axis Private Equity Ltd. 157 . SCOPE OF APPLICATION Axis Bank Limited (the 'Bank') is a commercial bank. The terms and conditions that are applicable for these instruments comply with the stipulated regulatory requirements. The Bank consolidates its subsidiaries in accordance with Accounting Standard 21 (AS 21) 'Consolidated Financial Statements' issued by the Institute of Chartered Accountants of India on a line-by-line basis by adding together the like items of assets. The Tier II capital consists of general provision and loss reserves. other disclosed free reserves. The Bank has entered into a joint venture agreement and holds an equity investment to the extent of 26% in Bussan Auto Finance India Private Ltd. 6. Axis Bank actively monitors all its subsidiaries through their respective Boards and regular updates to the Board of Axis Bank. Some of the Upper Tier-2 debt instruments have a step-up clause on interest payment ranging up to 100 bps. which was incorporated on 3 December 1993. Non-Banking Financial Company 26% Treated as an investment Nature of Business Marketing of credit cards and retail asset products Managing investments. The Bank does not have any interest in any insurance entity. 5. Sr. Axis Trustee Services Ltd. Interest on Tier-1 bonds is payable either annually or semi-annually. income and expenditure. 2. statutory reserves. Axis Asset Management Company Ltd. The investment in the joint venture is not deducted from the capital funds of the Bank but is assigned risk-weights as an investment. 50% from Tier 1 Capital and 50% from Tier 2 Capital. a non-banking financial company. The subsidiaries of the Bank are not required to maintain any regulatory capital. 3.. CAPITAL STRUCTURE Summary As per RBI's capital adequacy norms capital funds are classified into Tier-1 and Tier-2 capital. capital reserves and innovative perpetual debt instruments eligible for inclusion in Tier-1 capital that complies with requirement specified by RBI. upper Tier-2 instruments and subordinate debt instruments eligible for inclusion in Tier-2 capital. The table below lists Axis Bank's Subsidiaries/Associates/Joint ventures consolidated for accounting and their treatment for capital adequacy purpose. There is no deficiency in capital of any of the subsidiaries of the Bank as on 31st March 2009. The interest on Upper Tier-2 bonds is payable either annually or semi-annually. No. 1. The Bank is the controlling entity for all group entities that include its five wholly owned subsidiaries. The financials of the joint venture company are not consolidated with the balance sheet of the Bank as such investment does not fall within the definition of a joint venture as per Accounting Standard 27 (AS 27) 'Financial Reporting of Interest in Joint Ventures'. Tier-1 bonds are non-cumulative and perpetual in nature with a call option after 10 years. While computing the consolidated Bank's Capital to Riskweighted Assets Ratio (CRAR).

35% 9.89 crores) 24 November 2006 6 February 2007 28 June 2007 24 November 2021 6 February 2022 28 June 2022 9.82 million* (Rs. 1.50% 7. 447. 359. 10/. Debt Capital Instruments The Bank has raised capital through Innovative Perpetual Debt Instrument (IPDI) eligible as Tier 1 Capital and Tier 2 Capital in the form of Upper Tier 2 and Subordinated bonds (unsecured redeemable non-convertible debentures). subscribed and paid-up equity capital of Rs.82 million* (Rs. 1.00 crores comprising 50.370.05% 7.167% Period Perpetual Perpetual Amount Rs. As on 31st March 2009 the Bank has issued.00 crores USD 46 million* (Rs.370.000 equity shares of Rs.2009) 158 . During the year the bank has also allotted equity shares to employees under its Employee Stock Option Plan.25% Amount USD 149. 107.72 to a US Dollar (prevailing exchange rate as on 31. the Bombay Stock Exchange. Perpetual Debt Instrument The Bank has raised Perpetual Debt Instruments eligible as Tier 1 Capital.each.05.50 crores USD 59. The Bank's shares are listed on the National Stock Exchange. 303.72 to a US Dollar (prevailing exchange rate as on 31.2009) Upper Tier 2 Capital The Bank has also raised Upper Tier 2 capital. constituting 35.78 crores as per the table below: Date of Allotment 11 August 2006 Date of Redemption 11 August 2021 Rate of Interest 7.90.125% Rs. 759. 50.01 crores.Equity Capital The Bank has authorized share capital of Rs.118 number of shares of Rs.31 crores as stated below: Date of Allotment 30 September 2006 15 November 2006 Rate of Interest 10.31 crores) Rs. The GDRs issued by the Bank are listed on the London Stock Exchange (LSE). details of which are given below.31 crores Total Perpetual Debt *Converted to INR @ Rs. 214.39 crores) Rs. the aggregate value of which as on 31st March 2009 was Rs.00. The provisions of the Companies Act.78 crores Total Upper Tier 2 Capital *Converted to INR @ Rs. 233. 10/. the aggregate value of which as on 31st March 2009 was Rs.each. 447. 1956 and other applicable laws and regulations govern the rights and obligations of the equity share capital of the Bank.3. 50. the Ahmedabad Stock Exchange and the Over-The-Counter Exchange of India.00 crores Rs. 200.00.3. 500.

05% 9.700 crores was raised.00 150. Of this.516.56% 8.50% One-year G-sec. 3. semiannual yield plus a margin of 85 basis points to be reset at semi-annual intervals.30% 8.00 33.10 447.90 1.Amount deducted from Tier 1 capital .50% 6.98 359.75% 9. 3.Subordinated Debt As on 31st March 2009.30 During the year.50 104.30) (456.00 65.162. the Bank had an outstanding subordinated debt (unsecured redeemable non-convertible debentures) aggregating Rs.95% 6. Rs.00 5.500.95% Amount 5.054.95% 9.Reserves and surplus .Deferred Tax Assets Amount 10.00 3.31 (29.Investments in subsidiaries .e.00 30. INBMK) plus a margin of 65 basis points to be reset at semi annual intervals.00 22 March 2006 22 March 2006 22 March 2006 22 March 2006 28 June 2006 28 June 2006 30 March 2007 7 November 2008 28 March 2009 Total 22 June 2013 22 June 2013 22 March 2016 22 March 2016 28 September 2013 28 June 2016 30 March 2017 7 November 2018 28 March 2019 125. the details of which are stated below: (Rs.14) 159 .00 62. subordinated debt (unsecured redeemable non-convertible debentures) of Rs 1.75% 8.Innovative Perpetual Debt Instruments .00 5.00 200.Paid-up Share Capital .00 50.50% 8.90 250.10% 10.842.10% 11.00 60. in crores) Position as on 31st March 2009 A Tier 1 Capital Of which . in crores) Date of Allotment 20 September 2002 20 September 2002 21 December 2002 26 July 2003 26 July 2003 26 July 2003 15 January 2004 4 June 2004 Date of Redemption 20 June 2010 20 June 2012 21 September 2012 26 April 2009 26 April 2011 26 April 2013 15 October 2013 4 June 2010 Rate of Interest 9.00 25 July 2005 25 July 2012 500.70% 7.32% 8. Simple average of Mid of Bid and offer yield of the 1-year GOI bench mark (i.516.80 crores qualified as lower Tier 2 capital.00% 6.00 10. Capital Funds (Rs.01 9.30 crores.00 360. 8.

66 Out of above B.Standardized duration approach .30 1. the Bank is required to maintain a minimum ratio of total capital to risk weighted assets (CRAR) of 9.69% 9.398. As per the capital adequacy guidelines under Basel I. RBI issued the Master Circular-Prudential Guidelines on Capital Adequacy and Market Discipline on Basel II.4) 4.21 8.Basic indicator approach Capital Adequacy Ratio of the Bank (%) Tier 1 CRAR (%) 160 431.Of which amount raised during the current year .00 3.Portfolios subject to standardized approach .054.78 3. An assessment of the capital requirement of the Bank is carried out through a comprehensive projection of future businesses that takes cognizance of the strategic intent of the Bank. market and operational risk and the capital st adequacy ratio as on 31 March 2009 is presented below: (Rs.370.30) 15.700. with minimum Tier 1 Capital ratio of 6.Total amount outstanding .Interest rate risk .0%. The calibration of risk to business is enabled by a strong risk culture in the Bank aided by effective.26% 1.516.370. As per Basel II guidelines. the minimum capital required to be maintained by Axis Bank as per Basel II guidelines is higher than that under Basel I guidelines.38 (29. operational and market risks to this projected business growth enables assignment of capital that not only adequately covers the minimum regulatory capital requirement but also provides headroom for growth.1+B. Axis Bank is required to maintain a minimum CRAR of 9.78 1.050.64 Axis Bank is subjected to the capital adequacy guidelines stipulated by RBI. For the year ended 31st March 2009.50 49.Of which amount raised during the current year . technology-based risk management systems.Provision for Standard Assets B. In June 2008. A summary of the Bank's capital requirement for credit.80 468.19 13. at least half of which is required to be Tier 1 Capital.0%.027.51 0.46 13.1 Debt Capital Instruments eligible for inclusion as Upper Tier 2 capital .2 Subordinated debt eligible for inclusion in Lower Tier 2 capital .Amount eligible as capital funds B. In terms of RBI guidelines for implementation of Basel II.00 Amount . in crores) Capital Requirements for various Risks CREDIT RISK Capital requirements for Credit Risk .Foreign exchange risk (including gold) . capital charge for credit and market risk for the financial year ended 31st March 2009 will be required to be maintained at the higher levels implied by Basel II or 90% of the minimum capital requirement computed as per the Basel I framework. profitability of particular businesses and opportunities for growth.2+B. which are based on the framework of the Basel Committee on Banking Supervision.90 988. The proper mapping of credit.3-B.4 Deductions from Tier 2 Capital .Investments in subsidiaries C III.3 Other Tier 2 Capital .864.Securitization exposures MARKET RISK Capital requirements for Market Risk .Equity risk OPERATIONAL RISK Capital requirements for Operational risk .B Tier 2 Capital (net of deductions) (B.Total amount outstanding . Total Eligible Capital CAPITAL ADEQUACY 1.0%.Amount eligible as capital funds B.

Market Risk. This is dovetailed in the process through a combination of governance structures and credit risk policies. The Bank has formulated a comprehensive Stress Testing policy to measure impact of adverse stress scenarios on the adequacy of capital. control. The Committee of Directors. The Bank's risk governance architecture focuses attention on key areas of risk such as credit. The Department has four separate teams for Credit Risk. which is defined quantitatively and qualitatively in accordance with the laid-down strategic business plan. The policies were drawn based on the risk dimensions of dynamic economies and the Bank's risk appetite. The foundation of CRMF rests on the rating tool. market and operational risk and quantification of these risks wherever possible for effective and continuous monitoring. Head of Risk Credit Risk Operational Risk IV. Hong Kong and Dubai branches. review various aspects of risk arising from the businesses of the Bank. Operational Risk and Business and Economic Research and the head of each team reports to the head of the department. comprehensive processes and internal control mechanism. Asset-Liability Committee (ALCO) and Operational Risk Management Committee (ORMC) operate within the broad policy framework as illustrated below: Board of Directors Board level committees Committee of Directors Risk Management Committee of the Board Audit Committee Credit Committees & Investment Committees ALCO Operational Risk Management Committee Credit Risk Management Committee Committee of Executives The Bank has also formulated a global risk policy for overseas operations and a country specific risk policy for its Singapore. measure. which are sub-committees of the Board. Market RIsk Business and Economic Research 161 . The Board of Directors establishes the parameters for risk appetite. Structure and Organization Risk Management Department reports to the Executive Director (Technology & Business Processes) and Risk Management Committee of the Board oversees the functioning of the Department. The Bank is exposed to credit risk through lending and capital market activities. monitor and report risks effectively. while preserving the independence and integrity of risk assessment.RISK MANAGEMENT: OBJECTIVES AND ORGANISATION STRUCTURE The wide variety of businesses undertaken by the Bank requires it to identify. Objectives and Policies The Bank's risk management processes are guided by well-defined policies appropriate for various risk categories. CREDIT RISK Credit Risk Management Policy Credit risk covers the inability of a borrower or counter-party to honour commitments under an agreement and any such failure has an adverse impact on the financial performance of the Bank. Various senior management committees. The goal of credit risk management during the year has been to maintain a healthy credit portfolio by managing risk at the portfolio level as well as at the individual transaction level. The key components of the Bank's risk management rely on the risk governance architecture. The Board sets the overall risk appetite and philosophy for the Bank. independent risk oversight and periodic monitoring through the sub-committees of the Board of Directors. control processes and credit systems embedded in a Credit Risk Management Framework (CRMF). the Risk Management Committee and the Audit Committee of the Board. The Bank's credit risk management process integrates risk management into the business management processes.

Separate risk limits are set up for credit portfolios like advances to NBFC and unsecured loans that require special monitoring. The Bank has initiated a project to revamp its existing credit scoring models for retail assets with external support from a reputed international vendor and has initiated designing of application. financial companies and microfinance companies to objectively assess underlying risk associated with such exposures. Each internal rating grade corresponds to a distinct probability of default. Sound credit approval process with well laid credit-granting criteria. Sector specific studies are periodically undertaken to highlight risk and opportunities in those sectors. The Bank's retail asset portfolio has also shown matching growth. the Bank has strengthened its risk management systems to ensure that its advances are to borrowers having a good track record and satisfying the criterion of minimum acceptable credit rating. Appropriate covenants are stipulated for risk containment and monitoring. small traders. The other guiding principles behind Credit Risk Management Framework are stated below: Credit Sanction and related processes • • • • • • • • • 'Know your Customer' is a leading principle for all activities. Rating linked exposure norms have been adopted by the Bank. Portfolio level risk analytics and reporting to ensure optimal spread of risk across various rating classes. Large corporates. The acceptability of credit exposure is primarily based on the sustainability and adequacy of borrower's normal business operations and not based solely on the availability of security. financial companies. prospects and the competitiveness of the sector. the credit risk is measured and managed at the portfolio level as the products are score card driven. For retail and schematic SME exposures. Risk measurement for the retail exposures is done on basis of credit scoring models. In the case of schematic SME exposures. The credit rating tool uses a combination of quantitative inputs and qualitative inputs to arrive at a 'point-in-time' view of the rating of counterparty. With heightened activity in the real estate sector. scorecards and borrower-scoring templates are used for application screening. The Bank has developed rating tools specific to market segment such as large corporates. Industry-wise exposure ceilings are based on the industry performance. The key challenge for a healthy retail asset portfolio is to ensure stable risk adjusted earnings stream by maintaining customer defaults within acceptable levels. Credit rating tools are an integral part of risk-assessment of the corporate borrowers and the Bank has developed different rating models for each segment that has distinct risk characteristics viz. mid-corporates. The monitoring tool developed by the Bank helps in objectively assessing the credit quality of the borrower taking into cognizance the actual behavior post-disbursement. SME. The output of the rating model is primarily to assess the chances of delinquency over a one year time horizon. prevent undue risk concentration across any particular industry segments and monitor credit risk quality migration. 162 . behavioral and collection scorecards. micro-finance institutions.Scope and Nature of Risk Reporting and Measurement Systems The Bank has put in place the following hierarchical committee structure for credit sanction and review: • • • • • Zonal Office Credit Committee (ZOCC) Central Office Credit Committee (COCC) Committee of Executives (COE) Senior Management Committee (SMC) Committee of Directors (COD) Credit risk in respect of exposures on corporate and micro and small and medium enterprises (MSME) is measured and managed at individual transaction level as well as portfolio level. The Bank periodically carries out a comprehensive portfolio level analysis of retail asset portfolio with a risk-return perspective. project finance etc. Model validation is carried out periodically by objectively assessing its calibration accuracy and stability of ratings. MSME. Credit Rating System Internal reporting and oversight of assets is principally differentiated by the credit ratings applied.

• • • • • • Highest geographic concentration in a region. Borrowers with lower credit rating are subject to more frequent reviews. parameters like percentage of low. Particular attention is given to industry sectors where the Bank believes there is a high degree of risk or potential for volatility in the future. An asset. Exposure to Top 20 accounts as a percentage of Credit Risk Exposure (CRE). Percentage of term loans with residual maturity more than 3 years to total loans and advance. Remedial action is initiated promptly to minimize the potential loss to the Bank. compliance of sanction terms and conditions and effectiveness of loan administration. The rating tool for SME has an 8-point rating scale.Review and Monitoring • • • All credit exposures. once approved. Policies for Hedging and Mitigating Credit Risk Credit Risk Mitigants (CRM) like financial collateral. ranging from SME1 to SME 8. The Bank has formulated a Collateral Management Policy as required under Basel II guidelines. While determining level and direction of credit risk. Concentration Risk The Bank controls and limits concentration risk by means of appropriate structural limits and borrower limits based on creditworthiness. becomes nonperforming when it ceases to generate income for the Bank.risk credit (investment grade and above) to credit risk exposure and migration from investment to non-investment grade (quantum as percentage of credit risk exposure) are also considered. The Bank has fixed internal limits for aggregate commitments to different sectors so that the exposures are evenly spread over various sectors. Availability of CRM either reduces effective exposure on the borrower (in case of collaterals) or transfers the risk to the more creditworthy party (in case of guarantees). Definitions of Non-Performing Assets Advances are classified into performing and non-performing advances (NPAs) as per RBI guidelines. the most liquid of assets and thus free from any market and liquidity risks. are monitored and reviewed periodically against the approved limits. Number of single borrower exposures exceeding 15% of capital funds. compliance with internal policies of the Bank and with the regulatory framework. non-financial collateral and guarantees are used to mitigate credit risk exposure. The Bank monitors the level of credit risk (Low/Moderate/High/Very High) and direction of change in credit risk (increasing /decreasing/stable) at the portfolio level based on the following six parameters that capture concentration risk. Credit Risk Asset Quality Distribution of Credit Risk by Asset Quality Rating scale for large and mid corporates is a 14-point granular scale that ranges from AB-AAA to AB-D. A major part of the eligible financial collaterals is in the form of cash. Credit audit involves independent review of credit risk assessment. There are separate rating tools for financial companies and schematic SME exposures. These include: Large Exposures to Individual Clients or Group The Bank has individual borrower-wise exposure ceilings based on the internal rating of the borrower as well as group-wise borrowing limits. 163 . Customers with emerging credit problems are identified early and classified accordingly. NPAs are further classified into sub-standard. Percentage of unsecured loans to total loan and advances. Industries Industry analysis plays an important part in assessing the concentration risk within the loan portfolio. doubtful and loss assets based on the criteria stipulated by RBI. The Bank also monitors the rating-wise distribution of its borrowers. including a leased asset. Number of group exposures exceeding 40% of capital funds.

78 24. The regular/ad hoc credit limits have not been reviewed/ renewed within 180 days from the due date/date of ad hoc sanction.48 1.328.468. 10.920. 6. and a loan granted for long duration crops will be treated as an NPA if the installments of principal or interest thereon remain overdue for one crop season.262.32 Total 127. 11.820.96 1.13 * Non-fund based exposures are guarantees given on behalf of constituents and acceptances and endorsements. 1. 4.01 12.334. 3.98 5. 6.26 2.12 1. interest and/or instalment of principal remains overdue for a period of more than 90 days in respect of a term loan. 9. 2. the carrying amount is reduced to its recoverable amount.35 36.77 151. Definition of Impairment At each balance sheet date. 13. 5.06 164 .457.45 712.87 351. 5.492.Position as on 31st March 2009 (Rs. If such an indication is detected.931. the bill remains overdue for a period of more than 90 days in case of bills purchased and discounted.164.10 515. is less than its carrying amount. which the asset belongs to.17 612.47 526.95 3.Position as on 31st March 2009 (Rs.52 8.701.961. the Bank estimates the recoverable amount of the asset. a loan granted for short duration crops will be treated as an NPA if the installments of principal or interest thereon remain overdue for two crop seasons. 3.31 1.539. 7.56 1. the account remains "out-of-order'' in respect of an Overdraft or Cash Credit (OD/CC).32 1. No. in crores) Domestic Fund Based Non Fund Based * Total 116.96 2.79 88.312. in crores) S. If the recoverable amount of the asset or the cash-generating unit.53 184. 8.23 281.011.81 Overseas 11.87 306.Of which Electronics Electricity (Power Generation & Distribution) Cotton Textiles Jute Textiles Other Textiles Sugar Tea Food Processing Vegetable Oil and Vanaspati Amount Fund Based Non Fund Based 45.33 910.31 1.72 152. 4.50 992. 12.78 163.029.04 34. Industry Classification Coal Mining Iron and Steel Other Metal and Metal Products All Engineering .An NPA is a loan or an advance where: 1.572. CREDIT RISK EXPOSURES Total Gross Credit Risk Exposure Including Geographic Distribution of Exposure . Distribution of Credit Risk Exposure by Industry Sector . the Bank ascertains if there is any impairment in its assets. 2.85 0.43 86.425.07 671. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

250.11 7.28 14.70 1.08 2.Of which Drugs & Pharmaceuticals Cement Leather and Leather Products Gems and Jewellery Construction Petrochemicals and Petroleum Products Automobiles including trucks Computer Software Infrastructure .556.366. 21.818.017.Of which Infrastructure construction Roads .64 7.36 4.386.284. in crores) S.564.51 427.56 1.79 128.73 6.330. 18.945.180.756.472.65 1.166.27 6. .741.53 395.Of which Logistics 28.15 4.760.46 1.28 9.51 46.105. 25.35 165 403.Of which Telecommunication 26.272.68 2.538.95 3.278.306.442.047. Industry Classification Amount Fund Based Non Fund Based 348.99 12.32 862.44 4.81 1.163.15 715.11 1.226.31 70. in crores) Maturity bucket Cash. 17.819.276.90 3.88 1.17 2.25 15. 1.Of which Banks .00 181.917.52 1.33 20.35 968.96 35. Dyes.931.90 17.453.73 36. 27.53 674.24 996.96 450.71 3.79 1.028.376. 23.187.928.55 2.204.67 198.214.04 1 day 2 to 7 days 8 to 14 days 15 to 28 days 29 days to 3 months 3 to 6 months 6 to 12 months 1 to 3 years 3 to 5 years Over 5 years Total 826.82 2. 2.63 235.142. No.127.088.029.00 4.876.53 81.252.984.13 59.51 1.92 763.74 687.849.643.20 831.81 1.298.60 4.47 3.41 7.78 14.41 1.47 5.990. 15.09 16.543.745.81 612.42 1. balances with RBI and other banks 2. Tobacco and Tobacco Products Paper and Paper Products Rubber and Rubber Products Chemicals.90 Investments Advances Other assets including fixed assets 128.04 4. Paints etc.19 11.70 2. Industry classification Infrastructure NBFCs and Trading Percentage of the total gross credit exposure 12% 8% Residual Contractual Maturity breakdown of Assets . 19.016.60 960.85 1.77 .812.748. 20.56 11.Position as on 31st March 2009 (Rs.Of which Infrastructure construction Ports . 16.35 18.61 960.88 9.66 127. No.09 27.534.518.29 2.69 3.(Rs.06 1.25 4.87 250.94 301. NBFCs & Trading Other Industries . 22. 24.Of which Entertainment Media . Residual exposures to balance the total exposure Total As on 31st March 2009 the Bank's exposure to the industries stated below was more than 5% of the total gross credit exposure: S.

2008 Additions Reductions Closing balance as on 31.2008 Provision made in 2008-09 Write .performing investments Movement of provision for depreciation on investments V. Opening balance as on 1.back of excess provision Closing balance as on 31. in crores) Amount A Amount of NPAs (Gross) B C Substandard Doubtful 1 Doubtful 2 Doubtful 3 Loss 465. ICRA & Fitch (India) for domestic counterparties and Standard & Poor's.3.20 182.2009 246.64 NPIs and movement of provision for depreciations on NPIs .77 E Movement of Provision for NPAs Opening balance as on 1.2008 Provision made in 2008-09 Write .73) 570.2009 92.4.46) 897.offs/utilisations Write back of excess provision Closing balance as on 31. in crores) Amount A B C Amount of Non-Performing Investments Amount of provision held for non. Moody's and Fitch for foreign counterparties.29 7.96) 200.3.76 (74. 166 .61 892.offs Write .13 Net NPAs NPA Ratios Gross NPAs to gross advances (%) Net NPAs to net advances (%) 1.Position as on 31st March 2009 (Rs.29 CREDIT RISK: USE OF RATING AGENCY UNDER THE STANDARDIZED APPROACH The RBI guidelines on Basel II require banks to use ratings assigned by specified External Credit Assessment Agencies (ECAIs) namely CRISIL.97 327.64 282.2009 494.50 9.09% 0.4.3.16 122.40% D Movement of NPAs (Gross) Opening balance as on 1.50 17.4.Movement of NPAs and Provision for NPAs .62 (489.Position as on 31st March 2009 (Rs. CARE.32 (344.27) (21.32 690.00 7.

For exposures with contractual maturity of less than one year. Details of Gross Credit Risk Exposure (Fund based and Non-fund based) based on Risk-Weight . CRISIL. 58.25 VII. residential and commercial mortgages. Under the Standardized Approach. If an issuer has a long-term or short-term exposure with an external rating that warrants a risk weight of 150%. guarantees and credit insurance as credit risk mitigants. The Bank reduces its credit exposure to counterparty with the value of eligible financial collateral to take account of the risk mitigating effect of the collateral. also receive 150% risk weight. long-term rating is used. 7. In case the Bank does not have exposure in a rated issue. The Bank revalues various financial collaterals at varied frequency depending on the type of collateral. The guarantees include guarantees given by corporate. unless the Bank uses recognized credit risk mitigation techniques for such claims.398.16 60. Therefore. Moody's and Fitch is used. optimization of usage of capital and churning of the assets as part of risk management strategy. The securitization of assets generally being undertaken by the Bank is on the basis of “True Sale”. ICRA.22 crores.72 6.Position as on 31st March 2009 (Rs. whether short-term or longterm. All risks in the securitized portfolio are transferred to a Special Purpose Vehicle (SPV).60 96. maturity. rating and remargining/revaluation frequency of the collateral. Issuer ratings provide an opinion on the general credit worthiness of the rated entities in relation to their senior unsecured obligations. issuer. a short-term rating is used. Structured Obligation (SO) ratings are not used unless the Bank has a direct exposure in the 'SO' rated issue.604. For cash credit facilities and exposures with contractual maturity of more than one year. which provides 100% protection to the Bank from default. CREDIT RISK MITIGATION The Bank uses various collaterals both financial as well as non-financial. haircut is applied based on the type. issuer ratings would be used to assign risk-weight to unrated exposures provided that the unrated exposures are senior or pari-passu as compared to senior unsecured obligations of the same borrower. Standard & Poor's. all unrated claims on the same counterparty. plant and machinery.Investments in subsidiaries VI. in crores) Amount Below 100% risk weight 100% risk weight More than 100% risk weight Deductions . while main non-financial collaterals include land and building. Central Government and State Government. the Bank would use the issue rating for its comparable unrated exposures to the same borrower. The Bank has in place a collateral management policy. 167 .The Bank is using issuer ratings and short-term and long-term instrument/bank facilities' ratings which are assigned by the accredited rating agencies viz. Fitch and CARE and published in the public domain to assign risk-weights in terms of RBI guidelines. bank and personal guarantees. To account for the volatility in the value of collateral. In respect of claims on non-resident corporates and foreign banks. This also includes loan and advances guaranteed by Export Credit & Guarantee Corporation Limited (ECGC).554. the total credit exposure covered by eligible financial collaterals after application of haircuts.958. ratings assigned by international rating agencies i. NSC/KVP/LIP. and gold. except where the Bank provides sub-ordination of cash flows to Senior Pass-Through Certificate (PTC) holders by retaining the junior tranche of the securitized pool. The main financial collaterals include bank deposits. The Bank has a valuation policy that covers processes for collateral valuation and empanelment of valuers. provided that the Bank's exposures are pari-passu or senior and of similar or lesser maturity as compared to the rated issue. SECURITIZATION The primary objectives for undertaking securitization activity by the Bank are enhancing liquidity.e. which underlines the eligibility requirements for Credit Risk Mitigants (CRM) for capital computation as per Basel II guidelines. as on 31st March 2009 was Rs. Issue ratings would be used if the Bank has an exposure in the rated issue and this would include fund-based and non-fund based working capital facilities as well as loans and investments.

05 crores as an originator.Corporate Loans st Amount NIL NIL NIL NIL Aggregate amount of securitization exposures retained or purchased as on 31 March 2009 is given below: (Rs. ICRA. All transfers of assets under st securitization were effected on true sale basis. Type of Securitization Retained Securities purchased . post securitization. Gain on securitization is recognized over the period of the underlying securities issued by the SPV.627.No.Corporate Loans . the Bank has securitized Rs. appropriate provision/disclosure is made at the time of sale in accordance with AS 29 'Provisions. The Bank also provides credit enhancement in the form of cash collaterals and/or by sub-ordination of cash flows to Senior PTC holders. 2. 4. contingent liabilities and contingent assets'. The Bank uses the ratings assigned by various external credit rating agencies viz. In the financial year ended 31 March 2009.30 NIL NIL NIL 3. 1. in crores) S. the Bank continues to service the loans transferred to the assignee/SPV. In most cases. Fitch and CARE for its securitization exposures. In respect of credit enhancements provided or recourse obligations (projected delinquencies.95 - 168 . Type of Securitization Impaired/past due assets securitized Losses recognized by the Bank during the current period . 1. Loss on securitization is immediately debited to profit and loss account. The Bank has not retained exposure on securitization transactions originated by it during the year.65 138. future servicing etc.No.Commercial Vehicle portfolio . 5. in crores) S. 2. CRISIL. Risk weight wise bucket details of the securitization exposures on the basis of book value (Rs. Details of exposure securitized by the Bank and subject to securitization framework (Rs.The Bank enters into purchase/sale of corporate and retail loans through direct assignment/SPV. in crores) Amount Below 100% risk weight 100% risk weight More than 100% risk weight Deductions Entirely from Tier I capital Credit enhancing I/Os deducted from Total Capital Credit enhancement (cash collateral) 943.) accepted by the Bank.Personal Loan portfolio .Retail Auto Loans Liquidity facility Credit enhancement (cash collateral) Other commitments Amount NIL 943. 5.95 805. The Bank follows the standardized approach prescribed by the RBI for the securitization activities.

wherever relevant. The VaR models for different portfolios are back-tested at regular intervals and the results are used to maintain and improve the efficacy of the model.79 7. gaps and sensitivities (duration. The Bank adopts a comprehensive approach to market risk management for its trading. gaps and sensitivities (duration. The Bank undertakes stress tests for market risks for its trading book. management experience and the Bank's risk appetite.05 5. supplemented by Stress Tests and Scenario Analysis Risk limits such as position. The VaR is computed on a daily basis for the trading portfolio and reported to the senior management of the Bank. 169 . option greeks) are set up according to a number of criteria including relevant market analysis. IRS. however. Type of Securitization Total number of loan assets securitized . the Aggregate Gap Limit is allocated to various currencies and maturities as Individual Gap Limits to monitor concentrations. business strategy.37 3. if deemed necessary. option greeks) • Statistical measures like Value at Risk (VaR).No. investment and asset/liability portfolios.Outstanding servicing liability . at least. For example. prices of securities. VaR is calculated at a 99% confidence level for a one-day holding period. does not make any assumption about the nature or type of the loss distribution. annually or more frequently. The VaR measure is supplemented by a series of stress tests and sensitivity analysis that estimates the likely behavior of a portfolio under extreme but plausible conditions and its impact on earnings and capital.637. which are carried out both for customers and on a proprietary basis. The Bank is exposed to market risk through its trading activities.Corporate Loans Sale consideration received for securitized assets Gain / loss on sale on account of securitization Form and quantum (outstanding value) of service provided .201. in crores) S. to maintain consistency with trading strategies and material developments in market conditions. foreign exchange and equities. Risk limits are reviewed. the Bank continues to monitor the position closely for any possible concentrations. 1. MARKET RISK IN TRADING BOOK Market risk is the risk to the Bank's earnings and capital due to changes in the market level of interest rates.42 10.84 3. For market risk management. 5. forex open position and forex gaps as well as for liquidity risk at the end of each quarter.Comparative position of the portfolio securitized by the Bank is given below: (Rs. The method. Where such allocations have not been undertaken.95 3. Concentration Risk The Bank has allocated the internal risk limits in order to avoid concentrations.627.54 - VIII. These limits are monitored on a daily basis and the exceptions are put up to ALCO. PVBP.Corporate Loans Total book value of loan assets securitized .Liquidity support 31st March 2009 16 31st March 2008 19 2. The model assumes that the risk factor changes observed in the past are a good estimate of those likely to occur in the future and is. therefore.66 0.Credit enhancement . 5. The Bank uses Historical Simulation and its variants for computing VaR for its trading portfolio. PVBP. - 13. as well as the volatilities of those changes. limited by the relevance of the historical data used. the Bank uses: • Non-statistical measures like position. Similarly PV01 for interest rate swaps have been allocated to various benchmarks.209. The Bank typically uses 500 days of historical data or two years of relative changes in historical rates and prices. 4.

are monitored separately under the prudential norms for exposure to a single borrower as per the Bank's Corporate Credit Risk Policy or Investment Policy as applicable. Rating of counterparty Banks. Primary Dealers and NBFCs and sanctioning of limits are done as per suitable rating Model laid down by the Bank. Country Risk The Bank has put in place a risk monitoring system for the management of country risk. high.21 13.19 49. Risk Management Framework for Overseas Operations The Bank has put in place a comprehensive Risk Management Policy for its global operations. The Asset Liability Management and all the risk exposures for the overseas operations are monitored centrally at the Central Office. In addition exposures to high risk. Credit exposures to issuer of bonds. The Bank's ability to meet its obligations and fund itself in a crisis scenario is critical and accordingly.50 170 . The liquidity profile of the Bank is also estimated on a dynamic basis by considering the growth in deposits and loans.e.Liquidity Risk Liquidity Risk is defined as the current and prospective risk to earnings or capital arising from a bank's inability to meet its current or future obligations on the due date. liquidity stress tests are conducted under different scenarios at periodical intervals to assess the impact on liquidity to withstand stressed conditions. The categorization of countries are undertaken at monthly intervals or at more frequent intervals if the situation so warrants. The Bank undertakes behavioral analysis of the non-maturity products viz. restricted and off-credit followed by the Export Credit Guarantee Corporation Ltd.Position as on 31 March 2009 (Rs. to ascertain the volatility of residual balances in those accounts. advances. The Bank uses the seven-category classification i. very high. It has also formulated country-specific risk policy based on the host country regulators' guidelines. The Bank has also put in place the “Suitability & Appropriateness Policy” and Loan Equivalent Risk (LER) Policy to evaluate counterparty risk arising out of all customer derivatives contracts. The liquidity positions of overseas branches are managed in line with the Bank's internal policies and host country regulations. savings and current deposits and cash credit / overdraft accounts on a periodic basis.Interest rate risk . Hong Kong.. The Bank has set up exposure limits for each risk category as also per country exposure limits and are monitored at weekly intervals. very high risk. in crores) Amount of Capital Required . Exposure to a country includes all credit-related lending. The concentration of large deposits is monitored on a periodic basis. whether cross border or locally funded.Equity position risk . (ECGC) and ratings of international rating agency Dun & Bradstreet for monitoring the country exposures. moderate. The liquidity profile of the Bank is analyzed on a static basis by tracking all cash inflows and outflows in the maturity ladder based on the expected occurrence of cash flows. trading and investment activities. The Bank uses the current exposure method for setting up the LER limits. and Dubai. Counterparty Risk The Bank has put in place appropriate guidelines to monitor counterparty risk covering all counterparty exposures on banks. primary dealers and financial institutions arising out of movement in market variables. etc. restricted and off-credit countries are approved on a case to case basis. for a short-term period of three months. investment obligations. The Bank's ALM policy defines the gap limits for its structural liquidity position. etc. which presently includes branches in Singapore. The renewal pattern and premature withdrawals of term deposits and drawdown of unavailed credit limits are also captured through behavioral studies. insignificant. Liquidity risk is two-dimensional viz.Foreign exchange risk (including gold) 988. Capital Requirement for Market Risk . risk of being unable to fund portfolio of assets at appropriate maturity and rates (liability dimension) and the risk of being unable to liquidate an asset in a timely manner at a reasonable price (asset dimension). Such positions are also reviewed centrally by the Bank's ALCO along with domestic positions. low.

A model for the same has been developed using the OR software and tested on Retail Liabilities. All critical risks and potential loss events would be reported to the Senior Management/ORMC/RMC as appropriate. monitored and reported in a structured manner. for their directions and suggestions. the Bank is in the process of putting in place the structure for identifying gaps in internal controls across the entire Bank. Change Management Committee (CMC). and over a period would enable the Bank to adopt sophisticated approaches for the computation of capital for operational risk. which can be mapped to operational risk events to measure the impact quantitatively. As per the policy. all new products are being vetted by the Product Management Committee to identify and assess potential operational risks involved and suggest control measures to mitigate the risks. “near misses” and non-compliance issues relating to operational risks has been developed and implemented. Operational Risk Management Committee (ORMC). people or systems. Simultaneously. PMC and CMC and is a member in Outsourcing Committee and IT Security Committee.. This internal committee supervises effective monitoring of operational risk and the implementation of software driven framework for enhanced capability to manage operational risk. the business departments submit Action Taken Reports. Scope and Nature of Operational Risk Reporting and Measurement Systems A systematic process for reporting risks. The Bank has initiated several measures to manage operational risk through identification. The product is then independently reviewed by the Inspection & Audit Department of the Bank. A policy on management of operational risk has been approved by the Bank to ensure that operational risk within the Bank is properly identified. The functioning of these committees has stabilised. a framework has been laid to capture loss data. losses. In addition to the above. The Bank is also ready for compilation of capital charge for operational risk under the Standardized Approach. Business units put in place baseline internal controls as approved by the Product Management Committee to ensure appropriate controls in the operating environment throughout the Bank. Each new product or service introduced is subject to a risk review and signoff process where all relevant risks are identified and assessed by departments independent of the risktaking unit proposing the product. any changes to the existing products/ processes are being vetted by the Change Management Committee. after implementation of the product. assessment and monitoring. Product Management Committee (PMC). the Bank is preparing itself for migration to the Advanced Measurement Approach. to the Product Management Committee for their review. consisting of Senior Management personnel. Simultaneously. identify areas which show manifestation of weak controls through Risk & Control Self Assessment (RCSA) and Key Risk Indicator (KRI) modules.IX. Approach for Operational Risk Capital Assessment As per the RBI guidelines. which is responsible for implementation of the Operational Risk policies of the Bank. The Risk Department acts as the convenor of ORMC. The Bank is further enhancing its capability for effective management of operational risk with the implementation of a software solution (OR Monitor) which will create a database on loss events experienced by the different business lines of the Bank. The information gathered shall be used to develop triggers to initiate corrective actions to improve controls. st 171 . the Bank has followed the Basic Indicator Approach for the year ending 31 March 2009. or from external events. RMC is supported by the Operational Risk Management Committee (ORMC). Structure and Organization The Risk Management Committee (RMC) of the Board at the apex level is the policy making body. Similarly. Policies for Hedging and Mitigating Operational risk An Operational Risk Management Policy approved by the Risk Management Committee of the Board details the framework for hedging and/or mitigating operational risk in the Bank. Outsourcing Committee and IT Security Committee. However. The Bank has put in place a hierarchical structure to effectively manage operational risk through the formation of several internal committees viz. OPERATIONAL RISK Strategies and Processes Operational risk is the risk of loss resulting from inadequate or failed internal processes.

current account.X.50% (65.92) 8.90) 97.50% (1.72) Interest Rate Shock 0.812. in crores) Country India Overseas Total Interest Rate Shock 0.82) (-) 0.92 (8. INTEREST RATE RISK IN THE BANKING BOOK The Bank assesses its exposure to interest rate risk in the banking book at the end of each quarter considering a drop in market value of investments with 50 bps change in interest rates.10) 57. Other currencies are taken in equivalent base currencies (INR for domestic books and USD for overseas branches) as the Bank does not have material exposures to other currencies as a percentage of the balance sheet. The Bank does not run a position on interest rate options that might result in non-linear pay-off. Details of increase (decline) in earnings and economic value for upward and downward rate shocks based on balance sheet as on 31st March 2009 are given below: Earnings Perspective (Rs. etc. Cash flows are assumed to occur at the middle of the regulatory buckets.50% (1. and is reported to the senior management on a weekly basis. in crores) Country India Overseas Total Economic Value Perspective (Rs.529.681.50% 65. volatile portion of savings bank deposits. are excluded from the computation. capital.18 (1. Non-interest sensitive products like cash.82 172 .38) 130.60) (-) 0.10 (57. Calculation of interest rate risk in the banking book (IRRBB) is based on a present value perspective with cash flows discounted at zero coupon yields published by National Stock Exchange (NSE) for domestic balance sheet and USD LIBOR for overseas balance sheet. Future interest cash flows from outstanding balances are included in the analysis. The Earnings at Risk (EaR) measures the sensitivity of net interest income to parallel movement in interest rates on the entire balance sheet.78 (1.432.

Payakaraopet Mandal PATANCHERU Old No. Waltair Main Road Visakhapatnam.S.R. Road.T. Dwaraka Nagar VIZIANAGARAM MG Road WARANGAL Chowrastra. G. Hyderabad. Opp. Bhagya Nagar PAIDIPARRU Tadepalligudem Road P. Railway Degree College Service Branch. Dharmareddy Colony 173 Madhapur.S. Raju Plaza. Bank Street NELLORE G T Road. Nampally Vanenburg IT Park Extension Counter. Road MACHILIPATNAM Kennady Road. Main Road. Jagannadapuram MIRYALGUDA Sagar Road NALGONDA JB Plaza. Main Road Tarnaka. 5. Barpeta Road BONGAIGAON Chapaguri Road DIBRUGARH Opp. Hyderabad Begumpet Service Branch/CPC. HUDA Techno Layout Mehdipatnam Ring Road. Hyderabad. Alcazar Plaza Chandanagar. AM Arcade Sanjeeva Reddy Nagar. Road Fancy Bazar.LIST OF BRANCHES AND EXTENSION COUNTERS AS ON 22 APRIL. Rashtrapati House Srinagar Colony. Hemadurga Sharada Galaxy Charminar. III Floor.T. Near RTC Depot NIZAMABAD Hyderabad Road ONGOLE Trunk Road. Near Benz Circle Service Branch/CPC.95/7 & 95/3. Moosarambagh Himayath Nagar. Kapra Banjara Hills. Subhash Road BAPATLA Radam Bazar. RKB Path GUWAHATI Dispur. Adilabad ALAMURU Mandapeta to Alamuru Road ANANTAPUR Saptagiri Circle. Romana Plaza Hyderabad. Road . Vijayawada Benz Circle VISAKHAPATNAM MVP Colony. Madhapur Jubilee Hills. Venkatrajunagar CHITTOOR Prakasam High Road EDARAPALLI Near RTC Complex GACHIBOWLI Plot No. Prakasham Bazar NANDYAL RS Road NARASARAOPET Arundelpet. 7. Varuna Block. T. Railpet SRIKAKULAM Palakonda Road. Opp. Sector 10 Ram Nagar.S. Balanagar JANGAREDDIGUDEM Eluru Road KAKINADA Subhash Road. NH-9 POOLAPALLE Palakole-Bhimavaram Road PRODDATUR Sundaracharlu Street RAJAHMUNDRY Vygram Road. Car Street CHILLAKALLU Jaggayyapeta Road. Old Gajuwaka GUDIVADA Eluru Road GUNTUR P. Begumpet Road Commercial Tax Office Extension Counter.L. Near Krishna Park TENALI Motupallivari Street VIJAYAWADA One Town. KT Road. No. Main Bazar CHINNAMIRAM J. Station Road ARUNACHAL PRADESH ITANAGAR E Sector. Gulzar House.24.) PORT BLAIR Middle Point ANDHRA PRADESH ADILABAD H.1-26/1. Suryaraopet KARIMNAGAR Mukarrumpura KHAMMAM Vyra Road KOMPALLY Sree Vensai Towers. Rao Nagar. Road Paltan Bazar. Kompally KURNOOL R. No. A. Teli Plaza NH 52A ASSAM BARPETA ROAD Ward No. M. Serilingampally Mandal GAJUWAKA NH-5.P. Kothapet Ring Road.11. Balala Estate Dilsukhnagar. Bharatiya Vidhya Bhavan Public School Kukatpally. Necklace Road Service Branch/CPC. Nagar REPALLE Municipal Office Road. RP Road SMR Vinay Capitol. Head Post Office. Naaz Centre HYDERABAD A. PURAM S. N H No. G. 4-3-60/10. 2009 ANDAMAN & NICOBAR ISLANDS (U. 257/3 RT Secunderabad.

Pitampura Malviya Nagar. Sector 9 174 . Fire Service Station NAGAON AT Road. 2A & 2B Kirti Nagar. Netaji Subhash Marg Defence Colony. Near Head Post Office CHANDIGARH (U. Nani Daman DELHI DELHI New Delhi. G-06 Najafgarh. Noonmati NORTH LAKHIMPUR 52. Chowkbazar KARIMGANJ Opp. B-2/11 Pitampura.. NIFT Campus Janakpuri. Sector 8C Sector 17 Service Branch/CPC. Patel Chowk BETTIAH Supriya Road BHAGALPUR Patal Babu Road DARBHANGA Govindlal Jajodia Path. West Avenue Road Rajinder Nagar. Sector 5 (MLU) East of Kailash. Old Rajinder Nagar Market Rajouri Garden. Pandri Tagore Nagar. Near Bamunimaidan. Pachpedi Naka Parthivi Pacific. DP Block Punjabi Bagh. Ganjpara JAGDALPUR Akashwani Road.T. Main Road Naraina Vihar. C3/21 Karkardooma. Phase I Chandni Chowk. 135) Service Branch/CPC. Padam Singh Road Khan Market.II (S-266) Green Park Market. GE Road DADRA & NAGAR HAVELI (U. Naroli Road DAMAN & DIU (U. DHQ PO) Ministry of Urban Development Extension Counter (Nirman Bhavan. E-9 Palam Village Paschim Vihar.JORHAT A. Supela Chowk BILASPUR New Bus Stand CHAMPA Anupam Plaza. Ravissance House. F-43 Krishna Nagar. Chandigarh Sector 34 A (SCO 20-21-22) MANIMAJRA Chandigarh-Shimla Road CHHATTISGARH AMBIKAPUR Benaras Chowk BHILAI Uttar Gangotri. New Guwahati. Chittaranjan Park Daryaganj. B-6 Lajpat Nagar. HL Arcade. Ring Road Lok Vihar. Barakhamba Road Ministry of Defence Extension Counter (E Block. G.T.) DAMAN Teen Batti. Bhatta Bazar SIWAN Dwivedy Colony. Dak Bungalow Crossing PURNIA Kali Bari Chowk. Community Centre Karol Bagh. Maulana Azad Road) Ashok Vihar. Tatibandh RAJNANDGAON Sahdeo Nagar. Kalyani PATNA Boring Road Lok Nayak Jay Prakash Bhawan.T. Shillong Patty TEZPUR SC Road TINSUKIA Chirwapatty Road BIHAR BEGUSARAI Radhakrishna Market.I (E-64) Greater Kailash . Khelmati SILCHAR Shyama Prasad Road.) SILVASSA Jigar Complex. K-12 Hauz Khas. D 81 Dwarka. Road. Road. Station Road DHAMTARI Jagdalpur Road.T. Coronation Hotel Building K-1998. Near Kothari Park DURG GE Road.) CHANDIGARH Sector 35-B Madhya Marg . F-2/25 Lajpat Nagar. Ltd. Nayapara KORBA Power House Road MAHASAMUND Raipur Road RAIGARH Jagatpur RAIPUR Jeevan Bima Marg.E. A-356 Model Town III. Haibargaon NOONMATI D & H Tower. Phase II Meera Bagh. Shaheed Chowk MUZAFFARPUR Club Road. D-81 Mayur Vihar. 1. Vishal Enclave Rohini (Community Centre DC Chowk). LSC. Mirzapur Road GAYA North Church Road KATIHAR Ganga Ventures Pvt. Chandigarh Sector 34 A (SCO 134. D-70A Greater Kailash .

G12-A Service Branch. Main Nazafgarh Road Service Branch/CPC. Prahaladnagar. New Delhi Raisina Bengali School E-1. Ambawadi Service Branch/ CPC. Ward No. NADIAD Sheth Mahagujarat Hospital. Hirawadi Cross Road. Mundra Port & SEZ Ltd.B. Dev Nagar GOA CANDOLIM Murrod Vaddo MAPUSA Near Aldona Bus Stand. Moti Baug KALOL Vakharia PJ High School Campus MADHAPAR Near Panchayat Office MEHSANA Near Nagalpur College. College Road PATAN Opp. Highway Road METODA Plot No. Halol Godhra Road HIMATNAGAR Opp. Old Police Station Building BARDOLI Sardar Baug BHARUCH Old NH No. Motera. Near Swaminarayan Mandir Vejalpur.3rd Eye One. Gandhidham. Gupta Road. Narol-Naroda Highway Balaji Mall. Jhandewala Extension. E-146 Sector.Saket. Vikas Marg Tilak Nagar. Asopalav Guest House ATUL At First Gate. Parliament Street Service Branch/CPC. Opp. Ankur Road Relief Road. Vikaspuri . Police Commissioner Road Vastrapur.G. Krishna Baug Char Rasta Naranpura.C-3/9. New Delhi Asaf Ali Road Service Branch/CPC.K. Near Old Mahajan Chowk MUNDRA New Port Users Building.C 403/4. Nazafgarh Road Vasant Kunj. Prabha Road HALOL Opp. GIDC Lodhika MORBI Dr. Law Garden Office of Commissioner of Sales Tax Extension Counter. Visat Gandhinagar Highway. Chhatral GIDC DAHOD Station Road DEESA Railway Station Road GANDHIDHAM Sector 12 B Service Branch/CPC. Amul Dairy Road ANKLESHWAR Plot No. Angod MARGAO Padre Miranda Road PANJIM Sidarth Bandodkar Bhavan. Satellite Service Branch. Chandkheda AMRELI Near Nagnath Temple ANAND Satyam Chambers. College Road NAVSARI Navsari Gandevi Road PALANPUR Movie World Building. Shirgaonkar Road VASCO Heritage. Mehta Road. Highway. Rohini Shakti Nagar. Rajouri Garden D. Road Bapunagar. Ahmedabad . AM 196 Swasthya Vihar. Civil Campus Ellis Bridge. 8 BHAVNAGAR Waghawadi Road CHANDLODIYA Dev Nandan shopping Centre & Flats CHHATRAL Commerical Plot H-10/1. Gandhinagar Milk Consumers Co-op Union Ltd. Civil Hospital JAMNAGAR Jaidev Arcade. Indra Chand Shastri Marg Shalimar Bagh. Swatantra Path GUJARAT AHMEDABAD Asarwa. Near KKV Circle) Shastri Maidan RAJPIPLA Station Road 175 . GAWLI PALASIA Agra Bombay Road GODHRA Bhagwat Nagar. Ashram Road Maninagar. Basant Lok Complex Vikaspuri.. P. Nelson Mandela Road Vasant Vihar. Ahmedabad Shivalik Ishan. Rani Jhansi Road Shadley Public School. GPO. Jogger's Park JUNAGADH N.J-3 Uttam Nagar. Atul Ltd. Patthar Kuva S.7. Telephone Exchange. Takhatsinghji Main Road. 12/B GANDHINAGAR Sector 16. New Delhi.G. Balleswar Avenue Shahibaug. Station Road PORBANDAR MG Road RAJKOT Rajkot (Kalawad Road. C.

Urban Estate KAITHAL Ambala Road KALKA Khasra No. Panchmukhi Hanuman Temple. Tilak Road Service Branch/CPC. Vadodara. No. Opp. Sector 10 PANIPAT G.T. VIP Road Manjalpur.SURAT Adajan. Bokaro Steel City DEOGHAR Seth Surajmal Jalan Road.566 & 567. Bank More City Centre.C. 138(0-6). Main Road HAZARIBAGH NH33. Jagadri Road BAHADURGARH Nehru Park. Civil Lines Service Branch/CPC. Mahendergarh Road PALWAL Delhi Agra Bye Pass Road. Shiv Colony. Office Complex Extension Counter (Sector-29. Kasumpti SOLAN Mauza Kathar. District Shopping Centre. N. 1-2 Chowk. Plot No. Galleria Shopping Mall RITES Ltd.1) Gurgaon. Chowri Gali BHIWANI Circular Road.Road. Nr. Dabwali Road SONIPAT Old D. Banashankari 3rd Stage 176 . Ram Bagh Road KARNAL Mall Road KURUKSHETRA Railway Road MANESAR Tower J. Opp. 195 & 196. Caster Town DHANBAD Shri Ram Plaza. 140(0-3) & 142(1-2). Karan Plaza GURGAON DLF City. IMT Manesar NARNAUL Khasra No. Nizampura Main Road Race Course Circle North Sayajigunj. A/1. Sector 7 Faridabad. Mega City Mall Surya's Palam Central.O. Tower Chowk. Gurgaon Opp. Anand Mahal Road Surat. Near Ram Mandir Sakchi. Old Judicial Complex. Near Koparli Road VERAVAL Nr. Civil Court JAMSHEDPUR Bistupur. Ramgarh Cantt RANCHI Main Road. Road VADODARA Karelibaug. T. Rajmahal Road VISNAGAR Dagala Road HARYANA AMBALA JLN Marg. HUDA Shopping Centre FATEHABAD Mauz Bast Bhivan. Opp. Nagappana Katte BANGALORE No. HUDA House HISSAR Commercial Urban Estate JHAJJAR Rajan Complex. Indira Complex Nizampura. Sector 16. Bai Avabai High School VAPI GIDC. 139(0-4). Gautam Nagar VALLABH VIDYANAGAR Mota Bazar VALSAD Halar Road. Palam Vihar Sector 15. 1 Sand Line Road RAMGARH Main Road. Albert Ekka Chowk KARNATAKA ATHNI Inamdarpet BAGALKOT Extension Area Road. Baba Nagar FARIDABAD Ballabhgarh. HUDA House MG Road.I. Ring Road SURENDRANAGAR S. Umarwada. Near Rasulpur Chowk PANCHKULA SCO 10. Aditi School.C.T. Jammu Gandhi Nagar JHARKHAND BOKARO Western Avenue.1254. 30th Main Road. Ghod Dod Road Textile Market. Nandwani Nagar YAMUNANAGAR Mela Singh Chowk HIMACHAL PRADESH BADDI Sai Road. The Mall JAMMU & KASHMIR JAMMU Rail Head Complex Service Branch/CPC. Opp. Road REWARI Circular Road ROHTAK Delhi Road SADAURA Opposite DAV Public School SIRSA Sangwan Chowk. Sector-2. Luby Circular Road DUMKA Bhagalpur Road GIRIDIH Raja Bangal. Arya Nagar JIND S. Fauzi Complex SHIMLA Commercial Complex.

No. Wheeler Road Indiranagar. Sanjay Nagar Service Branch/CPC. 21. Rajkumar Road Sahakaranagar. Off M G Road. Anand Rao Circle. Ernakulam Wellingdon Island. Road. College Road. Calicut YMCA Cross Road. 5th Main Road Cox Town. H G Plaza Service Branch. Sindhanur Road MARLANHALLI Survey No. 7th Block Malleswaram. 1st floor KANNUR Muneeswarankoil Road KASARGOD Bank Road KOCHI Rajaji Road. KH Road Service Branch/CPC.Desai Cross.Vishwamanava Double Road Mysore .K. Gangavathi Taluk MYSORE Kuvempunagar. 80 Feet Road Chamarajapet. D. Road UDUPI Near Diana Circle KERALA ALAPPUZHA Cullen Road.B. Onkarappa Lane GADAG J. Main Market Rajajinagar. CMR Road . Panambur MANVI Municipal No. Nagar Main Road. Saraswathipuram RAICHUR Station Road SAIDAPUR Mahalingapura SO SHIMOGA JPN Road. Cauvery Bhavan. Francis High School ATTINGAL Zam Zam Plaza. MG Road Basaveswarnagar. Road. Hubli Road SIRUGUPPA S E S V K J Pre-University College Compound. Bangalore-Mysore Road. Opp. Near General Hospital GANGAWATI Sri Rama Complex. Bristow Road Pukalakkat City Centre & Sivadas Tower.C. 30th Cross.Bangalore. MysoreKantharaj Urs Road. 4th Block Koramangala. Parvathi Nagar BIDAR B. Tilakwadi BELLARY Main Road. Sri Puttanna Chetty Road. Main Block. Rajagopal Road.H. Varthur Main Road 100 Ft. Gandhi Gunj BIJAPUR MG Road CHICKMAGALUR Basavanahalli Main Road DAVANGERE P. 58 AC. Bangalore. Anand Rao Circle (Majestic) No. Deshpandenagar Service Branch/CPC. Mullackal Junction ALUVA Palace Road. Peenya Industrial Estate. Mandya MANGALORE Bunts Hostel Circle Mangalore Chemical & Fertilizers Ltd.B.Road.P. Hubli . HAL II Stage J. L G Road GOKAK Bus Stand Road GULBARGA Super Market HASSAN B M Road HOSPET College Road HUBLI Dharwad. Kalyan Nagar 23/4. Chirayinkeezhu Road CALICUT (KOZHIKODE) YMCA Cross Road Service Branch/CPC. First Technology Place Yelahanka. Peenya R. Cotton Pet MANDYA Chaitra Arcade. Gangavathi Road SIRSI Kamal Chambers. Bellary Road Vijayanagar. 149. New Town Electronic City. Site No.T. Konappana Agrahara. Bangalore (CMC). Chinnakada KOTTAYAM M. 4th Cross.K. M. Opp. Industrial Layout.V.5/11. Near YWCA MALAPPURAM Down Hill 177 . KG Road Seshadri Road. West of Chord Road Whitefield. Majestic NIFT Campus. Deshpande Nagar JAMKHANDI Kudachi Road.13-1-66/1/2. 1st Cross SINDHNUR Venkatesh Nagar.RG Road. Sampige Road Marathahalli. Siruguppa TUMKUR B.T Mutt Road. Nagar.. VV Mohalla Service Branch/CPC. St. Tennis Court KARWAR Green Street KOLAR Ganesh Temple Street.30. Near Toll Naka Main Road. Bannaragatta Main Road Jayanagar. HSR Layout BELGAUM Congress Road. Nair Road KOLLAM Asramam Road. 140. Dr. Bangalore.Temple Road.

Amankha Plot Road AMBERNATH Swanand Shopping Centre. Kurtalam Madurai Road ISLAMPUR Near Asta Naka JALGAON M G Road. Mini Civil Station THRISSUR City Centre. Sneh Nagar Main Road Vijayanagar. Road THIRUVANANTHAPURAM M. Near Manbhari Cloth Centre DOMBIVLI Cross Phadke Road ICHALKARANJI Ichalkaranji Co-op Estate.P. Satkar Choraha DAMOH Hotel Rambhog. 20. Meenakshi Chowk INDORE Annapoorna. CIDCO BARAMATI Bhigwan Road BHIWANDI Bhiwandi-Kalyan Road CHAKAN Nr Mahatma Phule Market Yard CHALISGAON Major Corner. Next to DCC CHIPLUN Hotel Atithi. South Western Territory. Nagar CHHINDWARA Nazul Block No. Shivaji Chowk AMRAVATI Near Jaistambh Chowk AURANGABAD Adalat Road Ghai Chambers.PALAI Near Municipal Bus Stand PALAKKAD English Church Road PATHANAMTHITTA General Hospital Road TIRUVALLA Ramanchira. M. Opp. Airport Road M. Super Market Road. 54 Yeshwant Niwas Road JABALPUR Napier Town. Arera Colony Koh-e-Fiza. Kalani Baug. Ghat Road CHANDRAPUR Civil Lines. Plot No. Near VC Bunglow SATNA Rewa Road SEHORE Indore Bhopal Road UJJAIN Dewas Road VIDISHA Subhash Road ITARSI Meghdoot Hotel. Karamana The Salvation Army India. Road. Kolhapur Road ILANJI Meenatchi Nagar. CTS No.G. Round West MADHYA PRADESH BHOPAL Bittan Market. Hospital MAHARASHTRA AHMEDNAGAR Tilak Road AKOLA ‘Khatri House’. Lalbaug DINDORI Nashik-Kalwan Road. DRM Office. Agra Bombay Road GWALIOR Shrimant Madhavrao Scindia Marg HOSHANGABAD Sadar Bazar. Dist. School of Artillery DHULE Main Market.C.3558. Shastri Bridge Chowk KHANDWA Shrinagar Main Road. Shanivar Peth KOLHAPUR Sykes Extension. Murbad Road KARAD Nr Tathe Hospital. Opp. 3203. Rajaram Road LASALGAON Lasalgaon-Vinchur Road LATUR Ausa Road 178 . Mumbai Goa Highway DEVALALI (NASHIK) Umrao Plaza Complex. 46. Kowdiar THODUPUZHA Opp. Do Batti REWA Pilikothi Road SAGAR Civil Lines. Patel Plaza JALNA Head Post Office Road KALYAN CTS NO. Station Road DEWAS Season 1. Mishra Nagar Sapna Sangita Road. AgraBombay Road GUNA Shri Maheshwari Mills Compound. Pattom Killi Towers. IndoreKhandwa Road KATNI Opposite Old Collectorate MANDSAUR Greater Kailash Hospital Road NEEMUCH Vijay Talkies Compound RATLAM Opp. Rest House SIDHI Jagsheel Complex. Scheme No.

Kandivali East Vile Parle (East).Pune.V. Off. Road MIDC. Balabhai Nanavati Hospital. Sai Heritage. Nelson Square. Hindustan Colony NALASOPARA Bably Apartment. LBS Marg Borivali (West). S Mart Bundgarden. Opp. Road GN Block. Jamshedji Tata Road Madhuban. Near Tata Motors Gate PUNE Baner. MumbaiAgra Road PIMPRI CHINCHWAD Station Road. Shankersheth Road Service Branch/CPC. Bandra Kurla Complex. Road Ghatkopar -East. JJ Hospital Chembur. Stn. Gen. Rabindranath Tagore Road Wardha Road.Saki Vihar Road Service Branch/CPC. Sir V Thackersey Marg Powai. Marie Villa. Atur Park. S. Mahavir Nagar Khar (West). IC Church. Zaver Road Napean Sea Road. Somani Memorial School. Turner Road Bandra-Kurla Complex. S. Nr. Sector 14. Andheri (East). Borivali Dr.10th Road Worli. Subhash Road Vile Parle (West). Infotech House Pune (Camp). Station Road Mira Road (East). Vijay Sadan Springfields (PB Branch) Andheri West. Sonawala Road Goregaon (West). Santacruz (West) NAGPUR Byramji Town. Vadgaonsheri Kothrud. Colaba) Dadar East. Fort (Mumbai).West. Dadar Central Rly. Anand Commerce Centre NEW BOMBAY Kharghar. Grant Road (East). Station Road NANDED Vazirabad . Central Avenue Road Madhav Nagar. Lokhandwala Complex Thakur Village. Pune Ganesh Khind (University) Road RAHURI Nagar Manmad Highway. Naik Road SANGLI Ambrai Road. Western Express Highway Byculla. Western Express Highway Kandivali (West). Annie Besant Road Service Branch (Fort) (Janmabhoomi Bhavan) Service Branch. Opp. Sir. Pune Bhandarkar Road Service Branch/CPC. Rahuri Khurd RATNAGIRI M. VashiKoperkhairne Main Road. Andheri-Kurla Road Andheri (West). Moti Mahal. S. Lokhandwala Complex Bandra (W). Malekar Wada. BD Marg LBS Marg (Mulund-West) Malad. Hiranandani Business Park Shivaji Park. P. Near Raymonds Showroom. Main Linking Road Lamington Road. Dr.V. Lokmanya Tilak Marg Cuffe Parade (G.V. Saki Naka Sanghi Villa'. Sector 44 Sanpada East.MIRA-BHAYANDER Bhayander (West). Vardhaman Chambers Premises CSL PANVEL Shivaji Chowk New Panvel. 3884. Annie Besant Road Worli (Naka). Atlanta New Marine Lines. L T Road. Nashik Nashik Road. SC Marg PEN Centre Point. Monolith Building Nariman Point. SV Road Goregaon-Malad Link Road Kandivali (East). M. D. Nerul (West). Chembur (Corporate Park) Service Branch/CPC. Saki Vihar Road. Station Road MIRAJ Rupa Apartments. IC Colony. Kulupwadi. Mahakali Caves Road Mulund West. Dhole Patil Road Hadapsar. Sector 4 Koperkhairne. Deccan Gymkhana Kalyani Nagar. Sandu Garden Corner Crawford Market. Pune-Solapur Highway Jangli Maharaj Road. Palm Beach Road Vashi. Azad Chowk 179 . Dr. Opp. S.Thakur Complex. Bus Depot. Dahisar Solaris'. Sodawalla Lane Borivali -East. Veer Savarkar Marg Sion (East). Near Laxmi Market MUMBAI Andheri (East). Bandra East Bhandup. Road. South Ambazari Road Nagpur. Chindwara Road Lakadganj.Bus Stand Road NASHIK Mazda Towers. Shahu College Road Senapati Bapat Marg Wanawadi. Dr.D. Bandra (East) Mount Poinsur. Sacred Heart Town Service Branch .T. Tryambak Naka. Tilak Road Goregaon (East). Andheri . Mumbai (Chembur) (Sion-Trombay Road) Churchgate. Chinchpada PIMPALGAON Opp. Thimayya Road Sahakar Nagar.

Chanda Market Complex BARIPADA K. Barbil Bus Stand BARGARH NH 6. Housing Board Colony. L. Bhubaneswar .West Manpada. CDA Dolamondai. Thane West “Pataskar Eclat”. At. Naupada.Mallick Commercial Complex. Patlipada. Ambadi Road VIRAR Agashi Road. Madhuban PURI Badasankha. Near Palace BHUBANESWAR Chandrasekharpur. Near Inspection Bunglow JHARSUGUDA By Pass Road KEONJHAR Pattnaik Estate. Stewart School Kalpana Square Satyanagar Service Branch/CPC. Amloh AMRITSAR Court Road. Baripada BERHAMPUR (GANJAM) Nandighosh Plaza.S.S. College Square NUAPADA (NAWAPARA) National Highway 217 PARADIP HIG-35. Thane.S.B. Panchvati Hotel. Marg SUNDARGARH Hospital Road TALCHER Sharma Chhak. V. Bhagarthi Chowk CUTTACK Bidanasi.SATARA G D Tapase Marg. Jatni JEYPORE NH 43. Virar (West) WARDHA Indira Market Road YAVATMAL Azad Maidan Road MANIPUR IMPHAL Thangal Bazar MEGHALAYA SHILLONG Jail Road TURA Hawakhana MIZORAM AIZAWL Chanmari NAGALAND DIMAPUR Circular Road KOHIMA Opp. Thane-West Utalsar Naka. PO: Hatatota PONDICHERRY PONDICHERRY Bussy Street PUNJAB ABOHAR Circular Road ADDA DAKHA Ferozepur Road AMLOH By-Pass Road. Jajpur Road JATNI Nangalia Complex.C. UBC Church ORISSA ANGUL Main Road BALASORE O T Road. Kennedy Avenue City Center Scheme BAGHA PURANA Mudki Road BANGA Phagwara-Banga Main Road BARNALA College Road BATHINDA TP Scheme. Railway Lines TASGAON Guruwar Peth THANE Hiranandani Estate. District Centre CRPF Square. Bhosale Marg SHIRDI Nagar-Manmad Road. Marg. Padhuan Pada BARBIL Opp. Kharvel Nagar BOLANGIR Tara Complex. The Mall BEGOWAL Begowal-Tanda Road DERABASSI Chandigarh – Ambala Road FARIDKOT Circular Road FEROZEPUR 1-The Mall 180 . Ghodbunder Road LBS Marg.Chitalsar. Grand Road RAYAGADA Rayagada Nagar Mouza ROURKELA Kachery Road SAMBALPUR Ashok Talkies Road. Jayaprakash Nagar BHADRAK Salandi By Pass BHAWANIPATNA Statue Square. Circle. Badambadi DHENKANAL Mahabirbazar JAJPUR Bank Street. Near Muchala Polytechnic College ULHASNAGAR Near Sapna Garden VASAI Opp. Near Bhakta Niwas SOLAPUR Dufferin Chowk.

Road.GARHSHANKAR Garhshankar-Chandigarh Road. 1C GURDASPUR Tibri Road. SCF No. Mall. Saheli Marg. C Scheme Malviya Nagar. Ward no. Rama Heritage Building. 2. Jai Complex BANSWARA Mohan Colony Circle. Municipal No. Ludhiana The Mall MALERKOTLA Satta Bazar Road MALOUT G T Road MANSA Water Works Road MOGA G. G.Hawa Sadak. First Tower. Near Bela Chowk SAMANA Main Road SANGRUR Kaula Park Market SRI HARGOBINDPUR Khasra No. Ward No. Raja Park. Heera Panna Complex BHIWADI RIICO Chowk BIKANER Rani Bazar Road. Agra Road GANGANAGAR Jawahar Nagar. 16 PHAGWARA G. 16. Sriganganagar Road JAIPUR Ashok Marg. GHG TARN TARAN Amritsar Road. Saurav Towers Vidhyadhar Nagar. Nr. Adarsh Nagar Vaishali Nagar. Lane No. The Mall Miller Ganj. RUPNAGAR Dashmesh Nagar. Sundar Nagar Tonk Road. Sec no. Kalgidhar Gurudwara KOTKAPURA Faridkot Road LUDHIANA 108. Ambedkar Market NAKODAR Noor Mahal Road NAWANSHAHR Mohalla Hira Jattan. Sri Hargobindpur SUDHAR Raikot Road. Nr. Anukiran Colony SIKAR S. Road Service Branch/CPC.V. Adjoining Gupta Nursing Home HANUMANGARH Baba Shyam Singh Complex. 474. 11. Sanganer 403. India Motor Circle ALWAR Road No. Nr. Near BMC Chowk Service Branch/CPC.D.2. Sumerpur Road RAWATBHATA RAPS Shopping Cluster. Ward No. Khumer Circle-Station Road BHILWARA Pur Road.G. Road. 16. R. Sector 61.1570 & 1571. Dak Bunglow and Railway Station BUNDI New Dhan Mandi Road DAUSA Khasra No. Vikas Nagar. Central Spine Service Branch/CPC. Pratap Talkies THREEKE Ferozpur Road URMAR TANDA SH. Opp. Road.R. JalandharNear Jawahar Nagar Market Sodal Road KAPURTHALA Mall Road KHANNA G. Jaipur . Banga Road PATIALA The Mall Road PATTI Ward No. T. AP Palace HOSHIARPUR Main Court Road JAGRAON Tehsil Road JALANDHAR Mahavir Marg.436 & 436A. Complex. Near LIC Office GOBINDGARH Plot No. Udaipur Road BHARATPUR Near Nasyaji Temple. Tanda-Sri Hargobindpur Road RAJASTHAN AJMER Kutchery Road. Civil Lines JODHPUR Chopasni Road KOTA Shopping Centre PALI Near Mastan Baba. Road PHULLANWALA Pakhowal Road RAJPURA Caliber Market RAYYA G. Jaja Chowk. 31A NH 181 . Road RANGPO Main Market.T.T. S A S Nagar NABHA Dr. 26 & 27 MOHALI Phase VII. Devipura Road UDAIPUR 222/21.6/24/1/3.T. Amritsar Road. Near UIT Circle SIKKIM GANGTOK M.T.

Marg.2. Road DINDIGUL Salai Road ERAIYUR Pennadam R. Mount Poonamalle Road T. Thillai Nagar TUTICORIN Palayamkottai Road VELLORE Officers Line VILLUPURAM Opp.S & PO. Theyagaraya High Road. Thiruvottiyur High Road Periyar Nagar. Cuddalore Main Road CHENNAI Adyar. Annasalai 26. Dharmanagar UTTAR PRADESH AGRA Anupam Plaza II. No. Nandanam No. Medavakkam High Road Mogappair East. East Coast Road. Trichy Road TRIPURA AGARTALA HG Basak Road DHARMANAGAR DNV Road. Opp.Jeevan Prakash Building. New Bus Stand. DB Road Trichy Road CUDDALORE No. Poonamallee High Road Madipakkam. Karumuthu Nilayam. Sangupet POLLACHI Kovai Road PUDUKKOTTAI East Main Street RAJAPALAYAM Tenkasi Road RASIPURAM Aaringar Anna Salai.No.6. Kamaraj Street Thiruvanmiyur.126. Sanjay Place Taj Link Road. Polur Road Velachery Tambaram Main Road Virugambakkam. Niranjan Puri ALLAHABAD M. No. Arcot Road Service Branch.1. Spencers Plaza Ashok Nagar. Srinivasapuram Tiruvannamalai. G N Chetty Road Tambaram West. Attur Road SALEM Omalur Main Road SATHYAMANGALAM Mysore Trunk Road SIVAKASI Rajarathnam Street THANJAVUR Trichy Road. T Nagar Service Branch/CPC. Chennai. Mahatma Gandhi Road. Karthikeyan Salai Purasawalkam High Road R A Puram. 2nd Main Road Ramapuram. 4th Avenue George Town. Shastri Nagar J Block.F. Nagar (Kotturpuram) COIMBATORE Avinashi Road. Annasalai Service Branch/CPC. Kovai Road North KUMBAKONAM Nageshwaran North Street LABBAIKUDIKADU MGM Building. 37. No. Nagar.TAMIL NADU ARNI Thatchur Road ATTUR Niresh Complex. T. Agra . Civil Lines Chowk. Bilal Rali Street MADURAI Goods Shed Street MAYILADUTHURAI Mahadhana Street NAGERCOIL Court Road OMALUR 5th Ward OOTY (OOTACAMUND) Ettines Road PERAMBALUR Trichy-Perambalur Road.G. Moore Street Kilpauk. 8. 4th Main Road Old Washermanpet. Haddows Road. Bazar Street Mylapore. Karumuthu Nilyam. 3rd Avenue. Fatehabad Road Service Branch/CPC. Dr. Ambica Sugars ERODE Perundurai Road HOSUR Bye Pass Road KANCHEEPURAM Gandhi Road KARUR VP Towers. Opp.D Road TIRUNELVELI East Car Street TIRUPUR Court Street TRICHY Salai Road. Pappanaickenpalayyam RS Puram. Annanagar East ICF Perambur Extension Counter (Shell Division) Annasalai. Nungambakkam Tamil Nadu Housing Board Complex. LIC Building THENI Madurai Road THIRUVALLUR JN Road TIRUCHENGODE 100/10. Radhakrishnan Salai Nanganallur. Sanjay Place ALIGARH Ramghat Road. Nethaji Road CUMBUM L. S.192. Shiv Charan Lal Road 182 .S. South Usman Road.

Bus Stand. Dehradun New Road Service Branch/CPC. Hospital Road LUCKNOW Ashok Marg. Behind Sujata Cinema BAHARAMPUR K K Banerjee Road.K. Circuit House FARRUKHABAD ITI Chauraha. Rampur Road DEHRADUN Shri Ram Arcade. Civil Lines SULTANPUR Mohalla Civil Lines. Rahe Murtaza. Civil Lines JHANSI Civil Lines. Lucknow UP Co-Operative Bank Building. Court Road NOIDA Greater Noida. Alambagh MATHURA Junction Road MEERUT Civil Lines. Kutchehry SITAPUR Eye Hospital Road. Sarai Khalsa MUZAFFARNAGAR Civil Lines (South). Mauza Kanausi.. 74(New No. Tanakpur Bye Pass Road RAI BARELI Kachwaha Complex. Rajpur Road Service Branch/CPC. Kutchery Road RAMPUR Shah Palace. Sikander Bagh Chauraha Hewett Road. Raidopur BAHRAICH 120/3. Opp. Apcar Garden BAGNAN OT Road. Tower. Central Lucknow Road JAUNPUR Kutchery Road. Road AMTALA Diamond Harbour Road.T. Chauhan Complex GORAKHPUR AD Chowk.250/466). Vaibhav Khand Mahaluxmi Metro Tower. Court Road SHAHJAHANPUR Opp. Extension Counter (Knowledge Park III) Sector 18 The Corenthum. PWD Guest House. Nainital Road TALLI HALDWANI Bareilly Road WEST BENGAL ALIPURDUAR Alipurduar Chowpothy. Station Road MUSSOORIE The Mall. Kripalu Hospital & Kripalu Temple UTTARAKHAND BAZPUR Main Doraha Road. 2 M G Marg" Sneh Nagar. Medical College Road HARDOI Mohalla Behra Saudagar. Dehradun Road ROORKEE Civil Lines RUDRAPUR Awas Vikas Colony.3089/051. Civil Lines. B. Lucknow-Faizabad Road.F. Boundary Road MIRZAPUR Badali Katara (Beltar) MORADABAD Civil Lines. Shivaji Marg Indira Nagar. Agra Road GHAZIABAD Ambedkar Road. Sultanpur VARANASI Shastri Nagar. Nehru Nagar Indirapuram. R. Opp. Phool Bagh LAKHIMPUR-KHERI Guru Kripa Building. Rathtala BANKURA Nutan Chati 183 . Microelectronics Private Ltd. Natraj Cinema Complex KANPUR The Mall. Faizabad Road "Service Branch/CPC. Bank Road Galaxy Mall. Opp. 616-Mohalla Shahpur. Chawni Sadar. Sigra VRINDAVAN Near Nandan Van Colony. Opp. Alpha Commercial Belt I Sector 16 S.AZAMGARH Civil Lines. KE Carmel School ARAMBAGH Link Road ASANSOL Sen Raleigh Road. Shyam Nagar FIROZABAD Vimala Tower. Dehradun Rajpur Road HARIDWAR Main Haridwar-Delhi Road KASHIPUR City Centre. Civil Lines SAHARANPUR Mission Compound. Vaishali GONDA Khasra No. Garhwal Terrace PANDRI Sitarganj Road RISHIKESH Adarsh Gram. Civil Lines FAIZABAD Civil Lines. Sector 62. Didiha Tiraha BARABANKI Gram-Obri. Noida PILIBHIT Chhatari Chouraha. Barabanki BAREILLY Civil Lines BULANDSHAHR DM Colony Road. Lal Dighi BALURGHAT Chakbhabani.

Rupasree Golden Cineplex KALIMPONG DS Gurgung Road. Newtown RISHRA Mukherjee Plaza.M. Road CHANDERNAGORE Burrabazar Main Road CHINSURAH Hooghly-Chinsurah Municipality. Main Road 184 . Road Electronic Complex.N. Nutan Fulia HABRA Jessore Road. 41 B Salt Lake City. National Highway 34 DANKUNI T. N. Road. B. Ghosh Street. Bankim Mukherjee Sarani Prince Anwar Shah Road.T.S. Manicktala Main Road Lake Town. Chaitan Sett Street C I T Road. C. Kolkata KONNAGAR G. Kolkata (CMC) . Block C. 107/A. Goswami Street SILIGURI Sevoke Road Radha Bazar. Clive Row Dum Dum. BD 20. T. 1. Deb Lane Dalhousie Square. Habra Bazar HALDIA Basudevpur HOWRAH Dr. BENGAL M. Sector III.Circus Maidan KHARAGPUR Malancha Road KOCH BIHAR Sunity Road KOLKATA Airport. Paddapukur BASIRHAT Basirhat Municipality Office BOLPUR Shantiniketan Road BONGAON Jessore Road.A C Market Complex. G.T. Abani Dutta Road. Gandhipally BURDWAN City Tower. Shakespeare Sarani 538.Bose Road Service Branch. Road KRISHNANAGAR.T. Mukherjee Road DARJEELING Rink Mall. Salkia Panchanantala. N. Ambika Kalna KALYANI B-9/276 (CA) KATWA Najrul Sarani. Laden La Road DIAMOND HARBOUR Mouza – Raynagar DURGAPUR Sahid Khudiram Sarani. Banerjee Road. Sector V. Near Puruliya Club RAIGANJ Mohanbati. City Centre FULIA Chatkatola. T. Near Damber Chowk KALNA Saptagram Kalna Katwa Road. Shakespeare Sarani Service Branch/CPC. KolkataNagaland House Service Branch/CPC. V I P Road Behala Chowrasta Burra Bazar. South Dum Dum New Alipore. Colony More PANIHATI B. Near Champa Cinema Hall BARUIPUR Kulpi Road. Pipulpati CONTAI Serpur Etwaribar DALKHOLA Opp. Motijheel Avenue Dunlop Bridge. Road MIDNAPUR Station Road NABAPALLY Sangam Market. Diamond Harbour Road (Manton) Salt Lake.K.AC Market.BARRACKPORE S. City High Rash Behari Avenue. Jessore Road Baguiati. S F Road SINGUR Nutan Bazar SURI Post Office More TAMLUK Bhimer Bazar. Sector I Sarat Bose Road (PB Branch) Shakespeare Sarani Shyambazar. Raja Subodh Chandra Mullick Road Golpark. NS Road RAJARHAT AXIS'. Panihati Municipality PURULIYA Ranchi Road. N.C. Gariahat Road Kankurgachi. Banerjee Street SERAMPORE T. Dalkhola Police Outpost. W. 5 Point Crossing Tollygunge. Near Main Post Office MADHYAMGRAM Madhyamgram Chowmatha MAHESHTALA Budge Budge Trunk Road MALDA K J Sanyal Road MEMARI G. Kolkata . Salt Lake City Garia. Deshpran Sashmal Road JALPAIGURI DBC Road. 23.

3318 – 1238.Raffles Place #48-01 Republic Plaza I Singapore . O.048619 Shanghai. Dubai.A. Dubai. Near Karama Post Office. 4. 23. China Hong Kong 805-809. Dubai National Insurance Building `Al Yamamah Towers’.O. Bur-Dubai. Deira. Alexandra House 18 Charter Road Central. Shanghai-200120. Opp. Karama. 33. Box: 122504. Level No. Box 506593. Citigroup Tower. Plot No.OVERSEAS OFFICES: Singapore Branch 9. UAE Unit No. No.E Representative Office: Office No. 1101. U. Pudong New Area. 2303. City Centre Mall Port Saeed. UAE 185 . P. Hong Kong Dubai. Huayuanshiquiao Road Lujiazhi. P. China Representative Office Suite No.

providing remedial education To set up 180 Shiksha Protsahan Kendras in Madhya Pradesh to educate about 5. Bangalore Grant for Computer Training Program for visually impaired. Jaipur To set up 25 Pehchanshalas in Churchu and Niwai blocks of Rajasthan for bridge course learning for out-of-school girl children 4 5 DEEDS Public Charitable Trust. Bhopal Grant for adopting 3 Municipal Schools. Mohili and Kondiwade in Maharashtra 17 Manovikas Kendra. Calcutta Grant towards identification and coaching of slow learning children from 21 municipal schools 18 MBA Foundation.800 children from 9 slums of Mayapuri and Naraina Industrial Area 7 8 Door Step schools. Andhra Pradesh 186 .500 children in formal schools over a period of 3 years 3 CULP.PARTNER NGOs NGOs SUPPORTED ON PROJECT BASIS Sr. Kolkata To build capacities of 5 smaller NGO as well as mainstream atleast 4. Hyderabad Grant towards Village Resource Centres in 96 villages of Nalgonda District. Tiware. Bangalore Katha. No. 2 CINI ASHA. Mumbai Grant for providing vocational training to youth Grant towards the second phase of Highway Rescue Project Grant towards supplementary education for approx. VI – X in the areas of Karjat.Mumbai Lifeline Foundation. Mumbai Deepalaya. 500 children from Std. New Delhi Grant for art education in the tribal areas Grant towards 50 early childhood centres or kathawadis for children from 2-7 yrs from 50 slums across Delhi 14 15 16 Kherwadi Social Welfare Association. Name of NGO 1 CHETNA. New Delhi Grant for providing English literacy to Deaf Youth To build capacities of 6 smaller NGO as well as mainstream at least 4. eventually leading to ensure employment 10 Foundation for Education & Development (Doosra Dashak).000 children 9 Enable India.500 children in formal schools over a period of 3 years 6 Disha. Grant towards educating 200 children from Meerabagh slums of New Delhi and eventual mainstreaming into formal schools 12 13 India Foundation for the Arts. New Delhi Purpose of Grant To take education to the streets and empowering street and working children through education in Delhi and Dehradun. Vadodra Light of Life Trust. New Delhi Grant towards education and popularization of Science in schools and among adolescents in rural Rajasthan. Jaipur 11 Godhuli. New Delhi To educate 1. Mumbai Grant for creating opportunities for Value adding and other activities suitable to persons with different types and levels of disabilities 19 MV Foundation. Mumbai Eklavya Foundation.AXIS BANK FOUNDATION CONSOLIDATED LIST OF GRANTEES .

Karnataka Grant for the salaries for special educators to educate special children Grant for bridge course for child laborers in Haveri District 187 . New Delhi Grant towards supplementary education to 300 children in Holambi Kalan. 2500 children from Std. Hooghly Grant towards inclusive education program for children with hearing disability 27 28 29 30 31 32 Prayas Bharati Trust (PBT). 24 25 Paragon Charitable Trust. Mumbai Shaishav. Mumbai Pardada Pardadi Education Society. Jharkhand Grant for 100 remedial coaching centres to reach out to approx. New Delhi Grant towards education of girl children in Bihar Grant for educating children residing in observation homes of Mumbai Grant towards education of girl children in Bihar Grant for 15 Balwadis and 35 study centres in slums in Mumbai Grant towards 6 Balghars. Bihar Sahaara Education Trust. UP Grant for teacher training program Grant towards education of 300 rural girls from Anupshahar. UP 26 Pratibandhi Kalyan Kendra. Lucknow. Patna Save the Children India. No. Mumbai and Chandigarh into formal schools 21 Nav Bharat Jagriti Kendra.Sr. 10 Educational centres and Balsenas in Gujarat Grant towards 12 centres in Kusumpahari and Rangpuri in New Delhi for Supplementary Education for 500 children 33 34 SPJ Sadhana School. Name of NGO 20 National Association for the Blind. Anupsahar. Mumbai Purpose of Grant Grant to integrate 150 blind children from Orissa. VI – X in 3 Blocks of Hazaribagh district in Jharkhand 22 Navjyoti India Foundation. Noida Grant towards capacity building of Hearing Impaired youth by imparting skills enabling employment through specialized vocational programs. New Delhi 23 Noida Deaf Society. Mumbai Sakhi. Bhavnagar Shanti Devi Charitable Trust. Mumbai Tropical Research & Development Centre (TRDC).

Chennai Jagannath Institute of Tech & Management. Arun Maira Mr. Manju Srivatsa Position in ABF Chairman Executive Trustee & CEO Trustee Trustee Trustee Other Assignment Past Chairman of BCG India. SPARC President.AXIS BANK FOUNDATION Sr. Anu Aga Ms.NGOs SUPPORTED ON ONE TIME BASIS Sr. Axis Bank Ltd. Thermax India Ltd. No. Grant towards their production of a play in Hindi . Ahmedabad Easow Mar Timotheos Welfare Centre. No. 7 Vidya Parasarak Mandal. 188 . M. 1 2 3 4 5 Name Mr. Axis Bank Ltd.'Unsuni' Grant for purchase of a Bus to carry mentally challenged students from their home to the school and back in Kalyan. Subramanian Ms. Mumbai Towards part funding for constructing the School building BOARD OF TRUSTEES . Mumbai Purpose of Grant Towards part funding of a High School expansion project at Chennai Towards cost of equipment for a mini tool room for training SC/ST students and tribals Towards part funding of Balwadi Project for 350 children from slums of Bandra 4 5 6 Mission for Vision Darpana Academy of Fine Arts. currently Special Adviser to BCG India President. Nasik.V. Sheela Patel Ms. Director. Orissa 3 National Societies for Clean Cities. Founder and Trustee. Name of NGO 1 2 Sriram Social Welfare Trust. Kalyan Grant for purchase of a Bus for patients' use to Tulsi Eye Hospital.

com CENTRAL OFFICE Maker Towers ‘F’.: 079-2640 9322 Fax No. Colaba. Mumbai . 3rd Floor.: 079-2640 9321 Email: p.oza@axisbank.: 022-6707 4407 Fax Nos.REGISTERED OFFICE ‘Trishul’. Opp. Ahmedabad .400005. Law Garden. c o m . No. Ellis Bridge.380 006. No. a x i s b a n k . Tel. Samartheshwar Temple. 13th Floor.: 022-2218 6944/1429 w w w. Cuffe Parade. Tel.

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