Definition of Non-Performing Assets The Bank follows the current guidelines of Reserve Bank of India (RBI) on income recognition,

asset classification and provisioning. A Non-Performing Asset (NPA) is a loan or an advance where : i. Interest and / or installment of principal remain overdue for a period of more than 90 days in respect of a term loan. Any amount due to the Bank under any credit facility is 'overdue' if it is not paid on the due date fixed by the Bank. ii. The account remains out of order, in respect of an Overdraft / Cash Credit (OD / CC). An account should be treated as out of order if the outstanding balance remains continuously in excess of the sanctioned limit / drawing power or where there are no credits continuously for 90 days as on the date of balance sheet or credits are not enough to cover the interest debited during the same period. iii. The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted. iv. A loan granted for short duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for two crop seasons. A loan granted for long duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for one crop season. v. Any amount to be received remains overdue for a period of more than 90 days in respect of other accounts. vi. The amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of RBIs guidelines on securitisation dated February 1, 2006. vii. In respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.

The Bank will classify an account as NPA only if the interest due and charged during any quarter is not serviced fully within 90 days from the end of the quarter. Non-performing assets are classified into the following three categories : i. Substandard Assets - A substandard asset is one, which has remained NPA for a period less than or equal to 12 months. In such cases, the current net worth of the borrower / guarantor or the current market value of the security charged is not enough to ensure recovery of the dues to the banks in full. In other words, such an asset will have well defined credit weaknesses that jeopardise the liquidation of the debt and are characterised by the distinct possibility that the banks will sustain some loss, if deficiencies are not corrected. ii. Doubtful Assets - A doubtful asset is one, which remained NPA for a period exceeding 12 months. A loan classified as doubtful has all the weaknesses inherent in assets that were classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values - highly questionable and improbable. iii. Loss Assets - A loss asset is one where loss has been identified by the bank or internal or external auditors or the RBI inspection but the amount has not been written off wholly. In other words, such an asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted although there may be some salvage or recovery value. Interest on non-performing assets is not recognised in the profit / loss account until received. Specific provision for non performing assets is made based on managements assessment of their degree of impairment subject to the

minimum provisioning level prescribed by RBI. Definition of Overdue Any amount due to the Bank under any credit facility is overdue if it is not paid on the due date fixed by the Bank. b) Total gross credit risk exposures : (Rs. lacs) Category March 31, 2010 March 31, 2009 134,357,30 105,489,42

Fund based*

Non-fund based** 22,297,14 17,063,74 Total 156,654,44 122,553,16

* Fund based exposures comprise loans & advances and investments. ** Non-fund based exposures comprise guarantees, acceptances, endorsements and letters of credit.

c) Geographic distribution of exposures : (Rs. lacs) March 31, 2010 Fund based Non-fund based Domestic 132,332,27 22,263,23 Overseas Total 2,025,03 33,91 134,357,30 22,297,14 March 31, 2009 Fund based Non-fund ba 104,656,04 17,063,74 833,38 -

105,489,42 17,063,74

d) Industry-wise distribution of exposures : (Rs. lacs) March 31, 2010 Fund Based Agriculture and allied activities Airlines Automobile and Auto Ancillary Banks and Financial Institutions Capital Market Intermediaries 3,149,36 187,60 7,383,28 Non-fund Based 72,06 234,06 751,88

9,413,64 246,55 1,082,14 1,781,31

Cement and Cement Products Chemical and Chemical Products Coal and Petroleum Products Construction and Developers Drugs and Pharmaceuticals Engineering Fertilisers and Pesticides FMCG and Personal Care Food and Beverage Gems and Jewellery Housing Finance Companies Information Technology Iron and Steel Mining and Minerals NBFC / Financial Intermediaries Non-ferrous Metals and Products Paper, Printing and Stationery

840,13 390,22 1,045,50 269,02 2,111,42 898,00 1,584,41 2,110,69 5,483,01 476,16 2,356,79 1,136,90 3,599,83 977,87 2,033,72 425,45 5,473,61 1,331,31 721,08 3,601,73 240,98 202,55 2,319,28 339,44 57,75 552,78 19,18 250,43 1,650,64 368,58 35,02 2,715,60 407,83