Annual Report Analysis Of IndusInd Bank

BALANCE SHEET AS AT MARCH 31, 2009
SCHEDULE As at 31.03.09 CAPITAL AND LIABILITIES Capital Employee Stock Options Outstanding Reserves and Surplus Deposits Borrowings Other Liabilities and Provisions TOTAL I XVIII (9) II III IV V 3,551,921 11,510 13,080,511 221,102,527 18,564,553 19,835,803 Err:511

Common Size Balance Sheet Rupees in '000s As at 31.03.08 at 31.03.09at 31.03.08 As As

3,200,000 5,068 10,292,066 190,374,227 10,954,346 17,793,112 232,618,819

Err:511 Err:511 4.7368% 80.0670% 6.7227% 7.1831% Err:511

1.3756% 0.0022% 4.4244% 81.8396% 4.7091% 7.6490% 100.0000%

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

VI VII VIII IX X XI

11,907,898 7,329,049 80,834,055 157,706,359 6,231,934 12,137,530 276,146,825

15,262,614 6,517,718 66,296,961 127,953,076 6,251,484 10,336,966 ###

4.3122% 2.6540% 29.2721% 57.1096% 2.2567% 4.3953% 100.0000%

6.5612% 2.8019% 28.5003% 55.0055% 2.6874% 4.4437% 100.0000%

Contingent Liabilities Bills for Collection Principal Accounting Policies Notes on Accounts

XII

442,991,733 (2937,73,35 )

309,819,307 (1761,20,60 )

XVII XVIII

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009
SCHEDULE Year ended 31.03.09 I. INCOME Interest Earned Other Income TOTAL II. EXPENDITURE Interest Expended Operating Expenses Provisions and Contingencies TOTAL III. PROFIT Profit brought forward AMOUNT AVAILABLE FOR APPROPRIATION IV. APPROPRIATIONS Transfer to a) Statutory b) Capital c) Investment Reserve Account d) Dividend e) Corporate Balance transferred to Balance Sheet TOTAL Earnings per share (basic)(Rupees) Earnings per share (diluted)(Rupees) Principal Accounting Policies Notes on Accounts XVIII(10.6) XVIII(10.6) XVII XVIII XV XVI XIII XIV

Common Size P&L Sheet Rupees in '000s Year ended Year ended Year ended 31.03.08 31.03.09 31.03.08 83.50% 16.50% 100.00% 66.91% 19.78% 7.95% 94.64% 5.36% 8.79% 14.15% 86.34% 13.66% 100.00% 72.53% 18.46% 5.56% 96.55% 3.45% 9.70% 13.15%

23,094,744 18,806,609 4,562,535 2,975,777 27,657,279 21,782,386 18,504,414 15,798,597 5,470,341 4,021,928 2,199,136 1,211,323 26,173,891 21,031,848 1,483,388 2,429,907 3,913,295 750,538 2,113,912 2,864,450

TOTAL

370,847 534,029 15,323 447,115 75,987 1,443,301 2,469,994 3,913,295 4.28 4.27

187,635 22,413 (– ) 191,885 32,610 434,543 869,086 2,864,450 2.35 2.35

1.34% 1.93% 0.06% 1.62% 0.27% 5.22% 8.93% 14.15%

0.86% 0.10% 0.88% 0.15% 1.99% 3.99% 13.15%

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2009
(Rs. in crores) For the year ended 31.3.2009 For the year ended 31.3.2008 A. Cash Flow from Operating Activities Net Profit after taxes Adjustments for non-cash charges : Depreciation on Fixed Assets Provision on Investments Tax Provisions (Income Tax/ Wealth Tax/ Deferred Tax) Employees Stock Option Expenses Loan loss and Other Provisions Interest on Tier II / Upper Tier II bonds (treated separately) (Profit) / Loss on sale of Fixed assets Operating Profit before Working Capital changes Adjustments for : Increase in trade and Other Receivables (Advances and Other Assets) Increase in Inventories (Investments) Increase in Trade Payables (Deposits, Borrowings and Other Liabilities) Cash generated from Operations Direct taxes paid Net Cash from Operating Activities B. Cash Flow from Investing Activities Purchase of Fixed Assets Sale of Fixed Assets (Proceeds) Net Cash used in Investing Activities C. Cash Flow from Financing Activities Proceeds from GDR issue – Capital – Premium Dividends paid Proceeds from Issue of Unsecured Non-Convertible Redeemable Subordinated Tier II Bonds Proceeds from Unsecured Non-convertible Redeemable Non-Cumulative Subordinated Upper Tier II Bonds Redemption of Sub-ordinated Tier II capital Interest on Tier II / Upper Tier II bonds Net Cash used in Financing Activities 148.34 44.17 (3.09) 79.150000000000006 0.64 143.85 77.27 2.6 492.93 75.05 40.159999999999997 3.63 39.229999999999997 0.51 37.29 76.58 (14.7) 257.75

(3311.17) 1769.75 (1450.62) 741.67 3946.23 1991.82 (322.63) 261.85000000000002 67.22 65.260000000000005 (389.85) 327.11

51.05 2.06 48.99

56.98 15.75 41.23

35.19 187 24.92 100 – 35.5 77.27 184.5

– – 22.45 50 – – 76.58 49.03

Net increase in Cash and Cash Equivalents Cash and Cash Equivalents as on the first day of the year Cash and Cash Equivalents as on the last day of the year

254.34 2178.0300000000002 1923.69

417.37 2595.4 2178.0300000000002

KEY FINANCIAL RATIOS
Productivity Ratios Profit per Thousands) Assets Per Thousands) employee (Rs Formula 2008-09 2007-08

Analysi

Net profit/ Number of employees

349.0

The profit per employee has up by 50% which is a very good s 261.6 per employee The bank's net profit hasn’t been effected which

employee

(Rs Avg Assets/ Number of full tyme employees

59,840.7

This shows that the assets per employee is over 410 crores w per employee ratio the better for the bank.

Average Personel Expenses (Rs Personel Expenses/ Number of full time Thousands) employees Loan Per Thousands) Employee (Rs Loans/ Total number of employees

440.2 37,098.65

Here we can see that the average personel expense has in could be because of the increase in the salaries and the down 424.9 the expense per employee the bank has achieved almost dou 44,598.49

Net Income per employee (Rs Thousands) Net income/ Number of employees Profitability ratios Formula

348.95 2008-09 2007-08

The profit per employee has gone up almost twice which is a 261.60 2791 to 2744 in 2008. The bank's net profit hasn’t been effect

Return On Assets (ROA)

Net income/ Total assets

0.58%

There has been an increase in the return on assets from 20 the bank to utilize its assets has gone up from 2007-3008. It banks able to earn 65 paise.

Return on Equity

Net income / Total equity capital

41.76%

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

Burden Net non interest margin

Non interest expense - Non interest income 3,106,942 Burden/ Avg total Assets Non Interest Expense/( Net Interest income+ Non interest income) 1.22%

2,257,474

Efficiency Ratio

1

1

Average Cost of Deposits Average Yield on Advances Cost- Income Ratio EPS (in Rs.)

8.22% 13.23% 59.77% 4.28

7.84% 11.76% 67.21% 2.35

Bank Performance Model

(Rs Thousands)

Interest
23,094,744

INCOME Return to shareholders
ROE = NI / TE 41.76% 27,657,279

Non Interest
4,562,535

Return to the Bank
ROA = NI / TA 0.58%

Interest expended
18,504,414

EXPENSES
26,173,891

Non Interest Expended
7,669,477

Degree of levarage
EM =1 / (TE / TA) 77.75

Analysis

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

er employee is over 410 crores which is still very high. For a bank the lesser the asset for the bank.

verage personel expense has increased by over Rs.27 thousand per employee. This ease in the salaries and the downsize from the previous year.With a meagre increase in e bank has achieved almost double the average profit per employee.

gone up almost twice which is a very good sign for the bank. The bank has downsized ank's net profit hasn’t been effected which means the bank is operating efficiently now.

in the return on assets from 2007 to 2008. This increase shows that the efficiency of has gone up from 2007-3008. It shows that for every every 100 rupees of assets the

ne up from 2007 to 2008 . This ratio gives the return on equity employed. This shows of capital the return is about 11 paise.

Operating Expenses
5,470,341

Provisions and Contingencies 2,199,136

Composition Of Capital Tier 1 and Tier 2 as on 31-03-2009
Tier I Capital Paid up Share Capital Reserves Innovative Instruments Other Capital Instruments Gross Tier I Capital Deductions Investments in Subsidiaries and Associates Credit enhancements under Securitisation Net Tier I Capital Tier II Capital Upper Tier II Bonds Sub-ordinated debts General Provisions / IRA and Revaluation Reserves Gross Tier II Capital Deductions Investments in Subsidiaries and Associates Credit enhancements under Securitisation Net Tier II Capital Total eligible capital Debt Capital instruments eligible for inclusion in Upper Tier 2 Capital Total amount outstanding Of which amount raised during the current year Amount eligible to be reckoned as Capital funds Subordinated debt eligible for inclusion in Lower Tier 2 Capital Total amount outstanding Of which amount raised during the current year Amount eligible to be reckoned as Capital funds Tier I Capital Funds Tier II Capital Funds Total Eligible Capital Funds 355.19 1,072.04 1,427.23 0.55 0.45 1,426.23 308.90 439.10 166.69 914.69 0.55 0.45 913.69 2,339.92 308.90 308.90 308.90 651.60 100.00 439.10 1,426.23 913.69 2,339.92

Capital Adequacy
Capital Requirements for Credit Risk,Market Risk, and operational Risk as on march 31,2009 Rs. in crores Risk Type Capital requirements for Credit Risk 1,548.44 Portfolio Subject to Standardised approach 1,547.99

Securitisation exposures Capital requirements for Market Risk Standardised Duration Approach Interest Rate Risk Foreign Exchange Risk (including gold) Equity Risk Capital requirements for Operational Risk Basic Indicator Approach Total Capital requirements at 9% Total Capital Funds CRAR

0.45 30.98 15.02 9.00 6.96 98.53 98.53 1,677.95 2,339.92 12.55%

ASSET QUALITY
Movements in NPAs Gross NPAs As at April 1 Additions during the year Deletions during the year As at March 31 2008-09 2007-08 392.31 342.73 219.00 155.49 356.29 105.91 255.02 392.31 in 000's 2008-09 2007-08 Gross NPAs 255020.00 392310 Net NPA 179130 291020 Net Advances 157,706,359 127,953,076 Total Investments 80,834,055 66,296,961 Total Assets 276,146,825 232,618,819

Provisions As at April 1 101.29 68.98 Add: Provisions made during the year 137.96 53.04 Less: Write-off, write back of excess provision during the year 163.36 20.73 As at March 31 75.89 101.29 Net NPAs as at March 31 179.13 291.02

2008-09 1) Net NPAs to Total Assets 6.49%

2007-08 12.51% Net NPA to total assets is reducing which is a good sign.

The Net NPAs are measured as a percentage of Total Assets
2) Net NPAs to Net Advances In this ratio,Net NPAs are measured as a percentage of Net Advances. 11.36% 22.74% Net advances have increased and net NPA's have decreased resulting in the reduction in Net NPA's to Net Advances

3)

Total Investments to Total Assets

29.27%

28.50%

arrived at by dividing total investments by total assets.
4) Percentage Change in Net NPAs 38.45%

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

It is given by the following formula:

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

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

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

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

In 000's

Management
Total Advances Deposits Profit Business Net Worth No of employees 1) Total Advance to Deposits It is arrived at by dividing total asset by total deposits 2008-09 2007-08 ### ### ### ### 1,483,388 750,538 tot adv+tot dep ### ### 16,632,432 13,492,066 4251 2,869 71.33% 67.21%

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

2)

Profit Per Employee

348.95

261.60

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

It is arrived at by dividing the net profit earned by
the bank by total number of branches. 3) Business Per Employee 89110.54

It is arrived at by dividing the total business
by the total number of employees. 4) Return on Net Worth This ratio is calculated by dividing PAT by the net worth 8.92%

This tool measures the efficiency of all the employees of a bank in generating b 110954.10 for the bank. By business we mean the sum of Total Advances and Total Depo particular year.

5.56%

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

management in converting the deposits funds like equity capital, etc.) into advances. , savings deposits, term deposits and deposits he receivables.

oyee.The higher the ratio, the higher the

he employees of a bank in generating business sum of Total Advances and Total Deposits in a

d by the shareholders. The higher the ratio the

EARNINGS QUALITY
Operating Profit by Avearge Working Funds
This is arrived at by dividing the operating profit by average working funds. Working funds is the daily average of the total assets during the year

INTEREST EARNED 2008-2009 2007-08 I. Interest/discount on advances/bills 17933112 14253294 II. Income from investments 4832401 4034701 III. Interest on balance with RBI and other inter-bank funds 157727 219163 IV. Others 171504 299451 Total 23094744 ### INTEREST EXPENDED I. Interest on Deposits 15759694 14011544 II. Interest on RBI/Inter-bank borrowings 1199696 558352 III. Other interest* 1545024 1228701 Total 18504414 ### PROVISIONS AND CONTINGENCIES 2,199,136 1,211,323

Total Assets Average Working Funds Operating profit Operating Profit/Avg Working Funds

276,146,825 254382822 1,229,773 0.48%

###

Percentage Growth in Net Profit
It is the percentage change in net profit from last year.

I I I . PROFIT Net Profit for the year % Growth

2008-2009 1,483,388

2007-08 750,538 97.64

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

Difference in Interest earned and interest expended: Total Assets Difference/Total Assets(spreads)

4590330

3008012

276,146,825 1.66

### 1.29

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

Net Profit/Average Assets

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

ASSETS Total Assets Avg Assets

2008-2009 276,146,825

2007-08 ### ###

I I I . PROFIT Net Profit for the year Net Profit/Average Assets

1,483,388 0.58

750,538

Interest Income/Total Income

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

INTEREST INCOME 2008-2009 2007-08 I. Interest/discount on advances/bills 17933112 14253294 III. Interest on balance with RBI and other inter-bank funds 157727 219163 IV. Others 171504 299451 Total 18262343 ### INCOME Interest earned Other income Total Interest Income/ Total Income

42898681 33153253 5813474 4468860 48712155 ### 0.37 0.39

Non-Interest Income/Total Income

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

NON-INTEREST INCOME

2008-2009

2007-08

II. Income from investments Other Income Total INCOME Interest earned Other income Total Non-Interest Income/Total Income

4832401 4034701 5813474 4468860 10645875 8503561

23,094,744 ### 4,562,535 2,975,777 27657279 ### 0.38 0.39

LIQUIDITY
CASH AND BALANCE WITH RESERVE BANK OF INDIA 2007-08 2008-2009 I. Cash in hand (including foreign currency notes) 1,418,778 1,080,779 II. Balances with Reserve Bank of India (a) In current accounts ### ### (b) In other accounts Total 11907898 15262614 BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I . In India (i) Balances with Banks : (a) In current accounts (b) In other deposit accounts Total (ii) Money at call and short notice : (a) With banks (b) With Other Institutions Total II. Outside India (i) In current accounts ii) IN OTHER DEPOSIT ACCOUNTS (iii) Money at call and short notice Total Total TOTAL ASSETS LIQUID ASSETS G-SECURITIES APPROVED SECURITIES DEMAND DEPOSITS TOTAL DEPOSITS

2,270,562 3,175,219 3,833,010 2,167,846 6103572 5343065 963,680 (– ) 963680 261,797 (– ) 963,680 1225477 8292729 280,840 674,016 954856 219,797 674,016 280,840 1174653 7472574

### ### 14097055 17392123 ### ### 37,531 37,618 ### ### ### ###

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

SCHEDULES
Rupees in '000s As at 31.03.09at 31.03.08 As SCHEDULE - I CAPITAL Authorised Capital 50,00,00,000 (Previous year 40,00,00,000) equity shares of Rs.10/- each Issued, Subscribed and Called Up Capital 35,50,00,000 (Previous year 31,98,07,936) equity shares of Rs.10/- each Paid up Capital 35,50,00,000 (Previous year 31,98,07,936) equity shares of Rs.10/- each Add : Forfeited 3,84,200 (Previous year 3,84,200) equity shares of Rs.10/- each On June 24, 2008, Bank issued 3,51,92,064 equity shares of Rs.10/- in the form of Global Depository Receipts each representing one share at a price of US $ 1.47 per GDR. Accordingly as at March 31, 2009, the paid-up share capital and share premium account under reserves of the Bank stand increased by Rs.35,19,21 and Rs.186,99,83 TOTAL respectively. SCHEDULE - II RESERVES AND SURPLUS 1 Statutory Reserve Opening balance Additions during the year 2 Capital Reserve Opening balance Additions during the year 3 Share Premium Account Opening balance Additions during the year 4 General Reserve Opening balance

5000000

4000000

3550000

3198079

3550000 1921

3198079 1921

3551921

3200000

988084 370847 1358931 322737 534029 856766 4129639 1869983 5999622 13557 13557

800449 187635 988084 300324 22413 322737 4129639 – 4129639 13557 13557

5 Investment Allowance Reserve Opening balance 6 Investment Reserve Account Opening Balance Additions during the year 7 Balance in Profi t & Loss Account 8 Revaluation Reserve Opening balance Addition during the year Deduction during the year

10000 10000 –– 15323 15323 2469994 2398142 – 41824 2356318 TOTAL (1-8)13080511

10000 10000

– – 2429907 – 2407798 9656 2398142 10292066

SCHEDULES
Rupees in '000s As at 31.03.09 at 31.03.08 As (SCHEDULE - III DEPOSITS ) (A 1 Demand Deposits ) ( i) From Banks ) ( ii) From Others ) (2 Savings Bank Deposits ) ( 3 Term Deposits ) ( i) From Banks ) ( ii) From Others )

402,502 368,917 29,147,151 17,650,044 12,999,356 11,864,250 23,782,193 14,090,749 ### 146,400,267 (TOTAL (1, 2 & ### 3) ) ### 190,374,227 ###

(B Deposits of Branches ) ( 1 In India ) ( 2 Outside India ) (TOTAL ) (SCHEDULE - IV BORROWINGS ) (1 Borrowings in India ) (i) Reserve Bank of India ) (ii) Other Banks ) (iii) Other Institutions and Agencies ) (2 Borrowings outside India ) (Secured borrowings included in 1 & 2 above ) (SCHEDULE - V OTHER LIABILITIES AND PROVISIONS ) (1 Inter-office Adjustments (Net) ) (2 Bills Payable ) (3 Interest Accrued ) (4 Unsecured Non-Convertible Redeemable Debentures/Bonds (Subordinated for Tier-II Capital) ) (5 Unsecured Non-Convertible Redeemable Non-Cumulative Subordinated Upper Tier II Bonds ) and proposed (6 Others (including Provisions dividend) )

### ###

2,000,000 590,931 8,467,062 7,506,560 (TOTAL (1 & 2) ### ) (– )

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

136,544 2,749,664 2,086,977 6,516,000 3,089,000 5,257,618 (TOTAL ) 19,835,803

27,060 3,173,687 1,772,032 5,871,000 3,089,000 3,860,333 17,793,112

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

1,418,778

1,080,779

10,489,120 14,181,835

(– – ) (TOTAL (1 & 2) ### )

15,262,614

SCHEDULES
Rupees in '000s As at 31.03.09at 31.03.08 As SCHEDULE - VII BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE 1 In India i) Balances with Banks a) In Current Accounts 2,270,562 3,833,010 b) In Other Deposit Accounts ii) Money at Call and Short Notice with banks (TOTAL (i & ii) ) 6,103,572 2 Outside India 261,797 i) In Current Accounts ii) In Other Deposit Accounts (– ) iii) Money at Call and Short Notice 963,680 (TOTAL (i, ii & iii)1,225,477 ) (GRAND TOTAL (1 & 2) ) 7,329,049 Schedule - VIII INVESTMENTS 1 Investments in India Gross Value 80,883,399 Less : Provision for Depreciation 49,344 Net value of Investments in India ### Comprising : i) Government securities 62,943,591 ii) Other approved securities 37,531 iii) Shares 357,192 iv) Debentures and bonds 142,504 v) Subsidiaries and/ or Joint Ventures 5,000 vi) Others - Deposits under RIDF scheme with NABARD 16,566,998 Security Receipt and Others 781,239 2 Investments Outside India (–– ) (TOTAL (1 & 2) ) ### SCHEDULE - IX ADVANCES A i) Bills Purchased and Discounted 13,858,815 ii) Cash Credits, Overdrafts and Loans Repayable on Demand 50,894,833 iii) Term Loans 92,952,711 (TOTAL ) ### B i) Secured by Tangible Assets (includes advances against book debts) ### ii) Covered by Bank / Government Guarantees (includes advances against L/Cs issued by Banks) 7,894,171 iii) Unsecured 12,334,556

3,175,219 2,167,846 5,343,065 219,797 674,016 280,840 1,174,653 6,517,718

66,457,983 161,022 66,296,961 54,357,127 37,618 390,562 402,121 5,000 11,025,133 79,400 66,296,961 4,460,055 37,099,856 86,393,165 ### 116,878,804 1,727,472 9,346,800

(TOTAL ) C i) Advances in India a) Priority Sector b) Public Sector c) Banks d) Others ii) Advances Outside India

###

### 50,055,311 1,385,676 48,904 76,463,185 ### (– ) ###

55,687,857 1,740,639 77,315 ### (TOTAL ) ### (– ) ( TOTAL ( i & ii) ) ###

SCHEDULES
Rupees in '000s As at 31.03.09 at 31.03.08 As SCHEDULE - X FIXED ASSETS 1 PREMISES i) At cost as at the beginning of the year ii) Revaluation during the year iii) Additions during the year iv) Less : Deductions during the year v) Less : Depreciation to date TOTAL 2 Other Fixed Assets (including furniture & fixtures) i) At cost as at the beginning of the year ii) Additions during the year[includes Assets given on lease Rs.225,71,92 (Previous year Rs.225,71,92)] iii) Less : Deductions during the year iv) Less : Depreciation to date TOTAL 3 Capital Work in Progress

4023757 45195 4,068,952 8318 227922 3,832,712 5675521 421878 6097399 91496 3746183 2259720

1563174 2407798 52,785.00 4,023,757 170577 3,853,180 5187565 509680 5697245 21724 3373473 2302048 96256 6,251,484 1944420 2201715 11775 565441 5613615 10336966

139502 TOTAL (1, 2 & 3) 6,231,934 2086180 2436677 15681 601346 6997646 12137530

SCHEDULE - XI OTHER ASSETS 1 Interest Accrued 2 Tax Paid in Advance / tax deducted at source (net of provision) 3 Stationery & Stamps 4 Non-banking assets acquired in satisfaction of claims 5 Others [includes Deposits with banks Rs.98,35,54 being credit enhancement against Securitised Assets (Previous year Rs.210,07,81)] TOTAL SCHEDULE - XII CONTINGENT LIABILITIES 1 Claims against the Bank not acknowledged as debts 2 Liability on account of outstanding Forward Exchange Contracts 3 Liability on account of outstanding Derivative Contracts 4 Guarantees given on behalf of constituents a) In India b) Outside India

2477661 2366200 304536688 171128504 98308730 91489952 17467744 18031370 -

5 Acceptances, Endorsements and Other Obligations 6 Other Items for which the Bank is contingently liable TOTAL

20200910 26803281 442991733 309819307

Moment of NPAs and Provision of NPAs as on 31 March, 2009 A Amount of NPAs (Gross) Sub-standard Doubtful 1 Doubtful 2 Doubtful 3 Loss B Net NPAs C NPA ratios Gross NPA to Gross advances (%) Net NPA to Net advances (%) D Movement of NPAs (Gross) Opening Balance as on 01 .04.08 Additions during the year Reductions during the year Closing Balance as on 31.03.09 E Movement of provision for NPAs Opening as on 01 .04.08 Provision made in 2008-09 Write off / Write back of excess provisions Closing as on 31.03.09

137.16 78.58 32.43 6.64 0.21 179.13 1.61% 1.14% 392.31 219.00 356.29 255.02 101.29 137.96 163.36 75.89

Non Performing Investmets and movement of provision for depreciation on Non Performing Investments A Amount of Non-Performing Investments B Amount of provision held for non-performing investments C Movement of provision for depreciation on investments Opening as on 01 .04.08 Add: Provision made in 2008-09 Less: Write-off/ write-back of excess provision Closing Balance as on 31.3.09 0 0 16.10 0.01 11.18 4.93

Items (i) Net NPAs to Net Advances (%) (ii) Movement in NPAs (Gross)

2008-2009 2007-2008 1.14% 2.27%

a) Opening Balance b) Additions during the year c) Reductions during the year d) Closing Balance (iii) Movement in Net NPAs a) Opening Balance b) Additions during the year c) Reductions during the year d) Closing Balance (iv) Movement in provisions for NPAs (excluding provisions on standard assets) a) Opening Balance b) Provisions made during the year c) Write-off/write-back of excess provisions d) Closing Balance

392.31 219.00 356.29 255.02 291.02 81.04 192.93 179.13

342.73 155.49 105.91 392.31 273.75 102.45 85.18 291.02

101.29 137.96 163.36 75.89

68.98 53.04 20.73 101.29

SCHEDULES
Rupees in '000s Year ended Year ended 31.03.09 31.03.08 SCHEDULE - XIII INTEREST EARNED 1 Interest / Discount on Advances / Bills 2 Income on Investments 3 Interest on Balances with RBI and Other Inter-Bank Funds 4 Others TOTAL SCHEDULE - XIV OTHER INCOME 1 Commission, Exchange and Brokerage 2 Profit on Sale of Investments / Derivatives (Net) 3 Profit / (Loss) on Sale of Land, Buildings and Other Assets 4 Profit on exchange transactions (Net) 5 Income earned by way of dividend from companies in India 6 Miscellaneous Income 17933112 14253294 4832401 4034701 157727 219163 171504 299451 23094744 18806609

(-)

TOTAL SCHEDULE - XV INTEREST EXPENDED 1 Interest on Deposits 2 Interest on Reserve Bank of India / Inter-Bank Borrowings 3 Others including interest on Subordinate Debts and Upper Tier II bonds TOTAL SCHEDULE - XVI OPERATING EXPENSES 1 Payments to and Provisions for Employees 2 Rent, Taxes and Lighting (includes operating lease rentals) 3 Printing and Stationery 4 Advertisement and Publicity 5 Depreciation on Bank's Property 6 Directors' Fees, Allowances and Expenses 7 Auditors' Fees and Expenses (includes branch auditors) 8 Law Charges 9 Postage, Telegrams, Telephones, etc. 10 Repairs and Maintenance 11 Insurance 12 Service Provider Fees

1391018 1215548 306276 718766 28795 1514684 4562535

1009809 194423 6709 288935 3735 1485584 2975777

15759694 1199696 1545024 18504414

14011544 558352 1228701 15798597

1871444 496362 130901 155116 441682 5519 9976 128746 274714 417049 202234 574506

1218966 365888 112373 21068 401586 6083 9839 131642 232076 308484 173479 463557

13 Other Expenditure TOTAL

762092 5470341

576887 4021928

Schedule No. XVIII NOTES ON ACCOUNTS 1 Capital Adequacy Ratio:In terms of its guidelines for implementation of new capital adequacy framework issued on 27th April 2007, RBI has directed ban having operational presence outside India to migrate to the revised frame work for capital computation (under Basel II) with effect from March 31, 2009. The migration is proposed in phased manner over a three-year period during which banks are required to compute their capital requirements in terms of both Bas and Basel II. The minimum capital to be maintained by Bank under the revised frame work is subject to a prudential fl oor of 100%, 90% and 80% of the capit requirement under Basel I over the year March 2009, 2010 and 2011 respectively. The capital adequacy ratio of the Bank, calculated as per RBI guidelines (Basel I requirement being higher) is set out below : 31-Mar-09 31-Mar-08 Items 12.33% 11.91% i) Capital Adequacy Ratio (CRAR) 7.52% 6.7% ii) CRAR – Tier I Capital (%) 4.81% 5.21% iii) CRAR – Tier II Capital (%) 100 50 iv) Amount of subordinated debt raised as Tier-II capital (Rs. in crores) 2. Investments: (1) Value of Investments : (i) Gross Value of Investments (a) In India (b) Outside India (ii) Provision for Depreciation (a) In India (b) Outside India (iii) Net Value of Investments (a) In India (b) Outside India (2) Movements in provision held towards depreciation on Investments : Opening Balance Add: Provision made during the year Less: Write-off / write-back of excess provision during the year Closing Balance (Rs. in crores) 2008-2009 2007-2008 8,088.34 6,645.8 8,088.34 6,645.8 –– 4.93 16.1 4.93 16.1 –– 8,083.41 6,629.7 8,083.41 6,629.7 –– 16.1 0.01 11.18 4.93 12.78 6.37 3.05 16.1

pril 2007, RBI has directed banks not ect from March 31, 2009. The uirements in terms of both Basel I 00%, 90% and 80% of the capital