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ALLAHABAD BANK

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


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

www.allahabadbank.in
-S / contents

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ANNUAL REPORT
2011-12
{` . / Page No.

02

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{` . / Page No.
Consolidated Financial Statement

List of Directors', Auditors' etc

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03-07

Financial Statement

Director's Message

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08-12

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13-26

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27-54

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55-80

Report on Corporate Governance

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Corporate Governance
Financial Statements of the Bank

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124-125

199-200

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/ IMPORTANT PROGRAMMES & DATES

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Date, time & Venue of Annual


General Meeting

14.06.2012

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10.30 A.M.

25.05.2012

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Last date for receipt of proxy form
and resolutions for appointing
authorized representatives

197-198

Proxy Form

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Cut off Date for ascertaining the


Shareholders eligibility to get dividend

195-196

Attendance Slip cum Entry Pass

Auditors Report of the Bank

193-194

Form for ECS mandate


82-123

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b |h{j
Certificate Pursuant to clause 49V of the
Listing Agreement

81

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Auditors Certificate on

187-191

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Auditors' Report of AllBank Finance Ltd.

Basel - II Disclosure

160-186

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Financial Statements of
AllBank Finance Ltd.

Directors Report of the Bank

156-159

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Directors' Report of AllBank Finance Ltd.

Notice of Annual General Meeting

Ei k h { J{IE E {] 154-155
Auditors Report on Consolidated

Chairman & Managing

126-153

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

09.06.2012

- III,

Purbashree Auditorium, Eastern Zonal Cultural Center,


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

PDF processed with CutePDF evaluation edition www.CutePDF.com

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ALLAHABAD BANK

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

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

1. su. {. =qy
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BOARD OF DIRECTORS (AS ON 31.03.2012)

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SHRI J. P. DUA

Chairman & Managing Director

SHRI D. SARKAR

Executive Director

SHRI M. R. NAYAK

Executive Director

Shri A. Udgata

Director

Dr. Shashank Saksena

Director

Shri R.M. Chaturvedi

Director

Shri D.N. Singh

Director

Shri Nirmal Kumar Bari

Director

Shri Gour Das

Director

Dr. Sudip Chaudhuri

Director

Shri Ashok Vij

Director

Shri A.P.V.N. Sarma

Director

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J-{IE/AUDITORS
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M/S P. A. & ASSOCIATES

Chartered Accountants

M/S M. R. NARAIN & CO.

Chartered Accountants

M/S S. GHOSE & CO.

Chartered Accountants

M/S K. M. AGARWAL & CO.

Chartered Accountants

M/S M. C. JAIN & CO.

Chartered Accountants

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Chartered Accountants

M/S N. K. Bhargava & Co.

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/REGISTRAR & SHARE TRANSFER AGENT

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77/2A, V b
EEi-700 029
]x - 033-40724051 54, 033-24541892
C - 033-24541961
<- : mcscal@cal2.vsnl.net.in

M/S MCS LTD. (Unit Allahabad Bank)


77/2A, Hazra Road,
Kolkata-700029
Tel : 033-40724051 to 54, 033-24541892
Fax : 033-24541961
Email : mcscal@cal2.vsnl.net.in
Website : www.mcsdel.com

Website : www.mcsdel.com

+vI B |v xnE
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Chairman and Managing


Directors Message

| mbtrl; vE,
Z 31 S 2012 E {i k i
+{E E E E {] +{E I |ii
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Mi ix {] +{E I
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Dear valued Shareholders,


It is indeed my great pleasure to place before
you the Annual Report of your Bank for the
financial year ended 31st March, 2012 for the
third year in succession. As the Chairman &
Managing Director of this glorious institution,
I thankfully acknowledge your unstinted
support during this years challenging
Macroeconomic environment

2011-12 E E Ex{nx E +SU + <x


ii |Mi E {l { E +{x Mx E Vxi xB J *
<x E< i{h k {] =tM i Ex{nx
E E E oi {{i r E * E E i E
]{i u <n Mv V b E +iMi |l {E mu
mbtrl; rfUgt dgt + {E (<xC) EM k { i
B+<B EM +b-2011 |nx E M* Vx b
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E 5 lx n M * E E VxE Ij ={G E
h k Ex{nE E E B ]+< S+ b B
Bx-] 18 u n <x Bb<V +b-2012
|nx E M *

The performance of the Bank in 2011-12 has been very good


and the Bank has lived up to its slogan of Consistent Growth
All the Way. The Bank has done better than the industry in a
number of key financial parameters increasing its visibility
considerably. The Bank was awarded Indira Gandhi
Rajbhasha shield (1st prize) from Her Excellency the
President of India and also got FIBAC Award-2011 for best
initiatives in Inclusive Banking. Your Bank has been ranked
as 5th in the category of fastest growing Banks by Business
World in their annual ranking for 2011. The Bank has also
been conferred with UTI-MF & CNBC TV 18 Financial Advisory
Award 2012 as the Best Bank in PSU category.

i +ll + EM {o E {|I 2011-12 E


nx +{E E E Ex{nx E h I{ +{E I
|ii E *

I place before you an analysis of the performance of your


Bank during 2011-12 along with a brief account of the Indian
economic and banking scenario.

2. +lE B EM {o

2. Economic and Banking Scenario

2.1 k 2011-12 E E Mi xB Jx E o]
E Sxi{h * { E n x +tME =i{nx SEE
(+<+<{) E =i-Sg nJ M* iE E
k 2011-12 E EU x +<+<{ r @hiE
S l* +<+<{ r k 2011-12 {U
E 8.3% E ix 2.8% * iE E P =i{n
r k 2010-11 E 8.4% E ix k
2011-12 6.9% |CEi E M<*

2.1 The Financial Year (FY) 2011-12 has been very


challenging in managing growth. The volatility in growth
was seen in Index of Industrial Production (IIP)
throughout the year. The IIP growth has even moved
into negative territory in some of the months of FY 201112. IIP growth for FY 2011-12 was 2.8% as compared to
8.3% last year. The real GDP growth is estimated to be
6.9% for FY2011-12 as compared to 8.4% for FY201011.

2.2 ESS i + i+ E Ei r E Eh k
2011-12 E +vE pi Mi =SS x
* < E E B VJ {n M CE pi
{ xjh i V n E =SSi i { xB J M
l* 2011-12 E nx h;eg sJo E u xiMi
n r E { |ii + * E + { n
6.75% l V 17 +| 2012 iE gE 8.5% M<*
E` V n E +vE | E E V V n
+ ] { {c V E E Vx E xB Jx {
n {c* E x, =SS V n { E Eh
+ll @h E M E < VE {h {
@h fuU =Xx E +<*

2.2

Inflation remained persistently high during the most part


of FY2011-12 due to increased crude & commodity
prices. This has put risk to growth as interest rates
were kept at higher band for controlling inflation. This
was reflected in the policy rates hikes by RBI during
2011-12. The repo rate was 6.75% in the beginning of
the year which increased to 8.5% till 17th April 2012.
The hardening of interest rates were very much reflective
in deposits interest rates and Base Rate of the banks
which has put pressure on maintaining the margins of
the banks. Not only this, the high interest rate regime
has moderated the credit demand in the economy
thereby resulting into reduced credit off-take.

2.3 E nx EM Ij r v * 30 S 2012 E
lli +xSi hVE E E @h 9.3% E r
< V 2011-12 i i V E E 17% E EiE
+xx E mtvuG * 30 S 2012 E lli +xSi
hVE E E V -n- +v { 17.4%
E r <*
3. E E Ex{nx

2.3

3.1 ivE E r Ex +{E E x x


Ex{nx n * V +ii: +{E E E |i V
E +vh E< Mx <V + * 2011-12 E nx
E E x 31.18% E r ni B {U E
<1423 Ec g E < 1867 Ec M* E E
{Sx 23.42% E r ni B {U E
< 3055 E c g E 2011-12 E n x
< 3770 Ec M*
3.2 < E E E +vi + {U E < 857 Ec
gE < 953 Ec M<* E +vi + r
Ex E +{x | E { E x + ii {I =i{n
E G i Zi + H =t E + BBB,
Bx{B G{x, <-=i{n E {hx, h CE E
G, @h x +n E { x< { E * < E
ii {I =i{n (]{{) E G < 19.21 Ec E +
+Vi Ex *

3.1

Your Bank has shown a commendable performance to


add to stakeholders value. The net profit of the Bank
showed a growth of 31.18% to reach < 1867 crore during
2011-12 from <1423 crore in the preceding year.
Operating profit of the Bank went up to < 3770 crore
during 2011-12 from < 3055 crore in the previous year,
showing a growth of 23.42 %.

3.2

The Fee Based income of the Bank increased from


Rs.857 crore last year to < 953 crore this year. The Bank,
in its endeavor to improve the Fee Based income, apart
from tie-up and joint ventures for insurance and sale of
third party products, took several new initiatives in the
form of ASBA, NPS Subscription, marketing of
e-products, sale of gold coin business, loan syndication
etc. The Bank was able to generate an income of
< 19.21 crore from selling of Third Party Products (TPP)
this year.

3.3 31.03.2012 E lli Mi-+ +x{i 41.65% *


2011-12 {x B OS] ni i < 745.04 Ec E
|vx E M * E l{x E +x{i
2010-12 E 16.69% E {I 2011-12 P] E 14.06%
M VE < +v E nx E {Sx
E +x{i 8.37% P] E 6.57% M*

3.3

The cost to income ratio stood at 41.65% as on


31.03.2012. An amount of < 745.04 crore was provided
towards the liability for pension and gratuity in 2011-12.
The ratio of establishment expenses to total expenses
decreased to 14.06% in 2011-12 from 16.69% in 201011 and the ratio of other operating expenses to total
expenses decreased to 6.57% from 8.37% during the
period.

4. Mi, + B Vx

4.

Cost, Yield & Margin

-n- +v { +O + 159 +v n+ E r <


+li 2011 fuU 10.50% E {I S, 12 E lli gE
12.09% M<* il{, V E Mi 124 +v n+
E r < +li S 2011 E 5.83% gE S 2012
7.07% M<* E E x V Vx {U S 2011 E
3.38% g E S 2012 3.48% M*
5. |ni +x{i
+i { |i 31.03.2011 E lli 1.11% E {I
31.03.2012 E lli 1.02% * |i ES 201011 E nx < 6.70 J E {I 2011-12 E nx gE
< 8.36 J M* |i + 2010-11 E < 31.85 g
E 2011-12 < 39.18 M< VE < +v E nx
< 178.64 gE <192.93 M*
6.
6.1 i OE , x]E i + xB =i{n { vx
Epi Ex E {h{ E E E 31.03.2011
E lli < 226458 E c 20.04% g E
31.03.2012 E lli < 271843 Ec iE {S M*

On Y-O-Y basis, Yield on Advances increased by 159 basis


points i.e. from 10.50% in 2011 to 12.09% as on Mar12.
However, the Cost of Deposit has increased by 124 basis
points i.e. from 5.83% in 2011 to 7.07% as on Mar12. The
Net Interest Margin improved to 3.48% as on Mar12 from
3.38% in Mar11.

The banking sector growth has been moderate during


the year. The Scheduled Commercial Banks (SCBs)
credit growth was 9.3% as on 30th March 2012 as against
RBIs indicative projection of 17%. The Aggregate
deposits of SCBs grew by 17.4% on y-o-y basis as on
30th March 2012.

3. Performance of the Bank

5. Profitability Ratios
Return on Assets stood at 1.02% as on 31.03.2012 as against
1.11% as on 31.03.2011. Profit per Employee improved to
< 8.36 lacs during 2011-12 from < 6.70 lacs during 2010-11.
Earnings per share went up to < 39.18 during 2011-12 from
< 31.85 during 2010-11 while book value per share improved
to < 192.93 from < 178.64 during the period.
6. Business
6.1

Focused approach towards enhanced customer


service, network expansion and new products resulted
in increase of Banks total business mix by 20.04% to
reach the level of < 2,71,843 crore as on 31.03.2012

E V 31.03.2011 E lli < 131887 Ec


E {I 21.01% g E 31.03.2012 E lli
< 159593 Ec M<* E E E @h 31.03.2011
E < 94,571 Ec E {I 18.69% g E 31.03.2012
E lli < 112250 Ec M* E E @h V
ylwvt; 71% hnt>

from < 2,26,458 crore as on 31.03.2011. Total Deposits


grew by 21.01 % to < 1, 59,593 crore as on 31.03.2012
from < 1, 31,887 crore as on 31.03.2011. Gross credit
of the Bank went up by 18.69 % to < 1, 12,250 crore as
on 31.03.2012 from < 94,571 crore as on 31.03.2011.
CD ratio of the Bank stood at 71%.

6.2 |i ES V 31.03.2011 E lli < 10.63


Ec l 31.03.2012 E lli gE < 12.17 Ec
M* VE < +v E nx |i J
< 93.38 Ec gE < 108.05 Ec M*
7. x]E B b Sx

6.2

+{E E x xnx E Mi E E Ex E B |tME E


+{x H x + + xSi Ex i Ii
xh E B x E * b Sx E J gx {
n M + 2011-12 E nx 101 x< JB J M< *
E x S k 250 x< JB + 1000 B]B Jx
E Vx x< *
8. +xVE +i

Your Bank has leveraged technology to lower transaction


costs and invested in capacity building for future earnings.
There was focus on increasing the number of delivery
channels and we opened 101 new branches during 201112. The Bank has planned to open around 250 Branches
and 1000 ATMs in the current financial year.

E nx +{x +i E Mhk xB Jx E Sxi{h


* E E E +xVE +i 31.03.2011 E lli
E @h E 1.74% E {I 31.03.2012 E lli 1.83%
* 31.03.2012 E lli x +xVE +i 0.98%
* i V E E 70% E xB xnb E {I E E
|vx EV +x{i 74% *
9. {V {{ii +x{i
E x 2.38 Ec <C] < 192.94 |i E n
< 459.40 Ec i Vx xM E +]i EB *
{V E + E E Jx 31.03.2012 E lli
g B { -** xnb E +x {V {{ii
+x{i 12.83% V 31.03.2011 E lli 12.96 % l*

It was a big challenge to maintain our asset quality during the


year. The gross non-performing assets of the Bank stood at
1.83% of gross bank credit as on 31.3.2012 as compared to
1.74% as on 31.03.2011. The net non-performing assets
stood at 0.98 % as on 31.03.2012. The Bank had provision
coverage ratio of 74 % against the new RBI norm of 70%.

10. |tME

10. Technology

|tME E H xx E =q < EM v + E
M< l* E u |Vi n Ij Oh E Bx<B] E
Ex { M V <x n Ij Oh E E OE n
E +x E E J +{x xv +ii E EM*

In order to leverage Technology, Mobile Banking facility was


introduced. The integration of NEFT of the two Regional Rural
Banks of the Bank has been completed enabling customers
of these two RRBs to transfer their funds to any other bank
branches in the country.

11. x vx E
2011-12 E nx E x 1541 +vE, {E M 879
M b +{] E i E * E nx 1600 {Ivx
+vE B 225 Y +vE E i |G E E V
*+{E E E ] E =i{nEi |i ES E {
31.03.2011 E < 10.63 Ec E {I 31.03.2012 E gE
< 12.17 Ec MRo*

11. Human Resource Development

12. k x

12. Financial Inclusion

E x rJteg mbtJuNl tuslt fuU yk;do; 2000 + <mmu +vE


VxJ 2618 O E + 2000 E VxJ
15549 O E E E V n-n 30 JB J
E EM B |nx E Vx * ix < x E M<

Bank, under the Financial Inclusion Plan covered 2618


villages having population of 2000 and above together with
15549 villages with a population of less than 2000 where
banking services are to be provided by opening of banking

Business per Employee increased to < 12.17 crore as


on 31.03.12 from < 10.63 crore as on 31.03.11 while
business per branch went up to
< 108.05 crore from
< 93.38 crore during the same period.

7. Network & Delivery Channels

8. Non- Performing Assets

9. Capital Adequacy Ratio


Bank has allotted 2.38 crore shares to LIC of India @ < 192.94
per share amounting to < 459.40 crore. With the capital
infusion & retention of profit, the capital adequacy ratio is
attained at 12.83% on our increased business as on
31.03.2012 as against 12.96% as on 31.03.2011 as per
Basel-II norms.

During the Financial Year 2011-12 ,1541 Officers and 879


Single Window operators in clerical cadre have been recruited
and a further intake of 1600 Probationary Officers and 225
Specialist Officers in lateral line during the Year is in the pipe
line. The productivity of staff of your Bank measured in terms
of Business per Employee increased to < 12.17 crore as on
31.03.12 from < 10.63 crore as on 31.03.11.

Vx BE ZJb V E nE J E +iMi 12 O E
ytih yg i{, =k |n E +iMi + x< n E J J
E +iMi |iE 6 O E EM |nx Ei k*

outlets of 30 Brick & Mortar branches. Three Mobile Vans


were launched one at Dumka branch in Jharkhand State
covering 12 villages, others at Sitapur in U.P and Khaira in
New Delhi covering 6 villages each.

13. E{] VE ni

13. Corporate Social Responsibility

+{E E E{] VE =kni Ji +


< Ij <x +xE EhE E EB * +{x | E {
E x VE {Vx+ E { E V Oh VM
|Ih lx (+B<]+<) E l{x, k Ii B @h
{ Exp (BB) E J Vx + x , {
x {+ E +{xx V V + = { , V E
Ei , BE {] {ix x nn Ei *

Your Bank believes in Corporate Social Responsibility and


has taken a number of welfare measures on this score. In
this endeavor, Bank has taken initiatives for social projects
like establishment of RSETI (Rural Self Employment Training
Institute), opening of Financial Literacy and Credit Counseling
Centers (FLCCs) and adoption of wild animals at Van Vihar
Bhopal which can facilitate visible change in the society and
environment in which the Bank operates.

14. +xM l

14. Subsidiaries

E E {h i +xM E{x + E <x ., V


h-* S] E E { {VEi , <x 2011-12
< 2.90 Ec E E {Si ({B]) +Vi E *

All Bank Finance Ltd., a fully owned subsidiary of the Bank


registered with SEBI as Category-I Merchant Banker, earned
a profit after tax (PAT) of < 2.90 crore in 2011-12.

15. x< {

15. New Initiatives

15.1 E x +{x b] OE E +x<x ]bM v |nx


Ex i +ni x . E l hxi{E
ri E *

15.1 Bank has entered into a strategic alliance with M/S Aditya
Birla Money Ltd for providing online-trading facility to
the Demat customers of the Bank.

15.2 E E OE E |O Eb +li SV/Gb] Eb V


Ex i E x +Ex BC| EM E{x E
l Zi Y{x { iI EB *

15.2 Bank has signed a MOU with M/S American Express


Banking Corporation for issuance of Program Cards
i.e. Charge/Credit Cards to the customers of the Bank.

15.3 S ] Ex E B E x S] <] {
{<] + ({+B)/<C]xE b] E{S(<b) xk
M< *
15.4 E x n <]BC] { (+<+) EB k
Vx BE xn |{] V x EM E B |M
E VBM VE n E |M B]B vi
E VBM*
15.5 E x I B P =t E Gb] ]M i +<+B
. E l Zi Y{x { iI EB *

15.3 Bank has launched Point of Sales (POS)/Electronic Data


Capture (EDC) machines at Merchants Sites for
acquiring Merchant Business.

15.6 E x +{x E{] OE E +{iEi+ B JS E


Mix + n +n E Mix E mwrJ"t =ulu nu;w Juc vtuxot
rJfUrm; rfUgt ni>

15.6 Bank has developed a Web Portal for corporate


customers to facilitate online payments / suppliers &
expenses payments and claims etc.

16. o]Eh

16. Future Outlook

16.1 n +{x ={li gx E =q MEM +{x


n J + xZx, Sx |ixv E E +
E x n + +vE JB Jx E Vx x< *
16.2 E E E E Mi E E Ji B +{E E x S
k 21.39% E r E I J + S 2013
i MM < 3,30,000 Ec E E i |{i Ex
E +xx M *

16.1 In order to increase overseas presence, apart from the


existing overseas branch at Hong Kong as well as
representative office at Schenzen China, the Bank has
planned to open more overseas branches.

15.4 Bank has introduced two Interactive Voice Response


(IVR) one with Hindi Prompt to be used for Phone
Banking and the other one for dealing with the ATM
related issues.
15.5 Bank has signed MOU with ICRA Limited for Credit
Rating of Micro & Small Enterprises.

16.2 Sustaining the growth momentum of the Bank, your


Bank has targeted a business growth of 21.39% during
the current year and projected a business level of around
< 3,30,000 crore as at March 2013 .

17. {E B ={v

17. Awards & Achievement

{E (<xC) EM k { i B+<B
EM +b-2011*

FIBAC Banking Award 2011- best bank for


initiatives in Inclusive Banking.

VxE Ij ={G E h k Ex{nE E


E B ]+< S+ b B Bx-] 18 u
n <x Bb<V +b-2012 *

UTI MF & CNBC TV 18 Financial Advisory Award


2012- best bank : PSU Category

<n

Indira Gandhi Rajbhasha Prize (first prize)

Vx b x 2011 E +{x JtrMofU EM E E


iV E Ex E 5 lx n
*

Bank has been ranked as 5th in the category of


fastest growing Banks by Business World in their
annual ranking for 2011

Mv V {E E +iMi |l {E*

18. +

18. Acknowledgement

+{x i {i Ex { , { lx + ii Mnx
i vE, i E + i V E E |i
nE + |E] Ex SM* xnE b E
+ b E n E =xE u nB MB |ix B Mnx
i vxn ni * E nx E n{h ih E
+ E E E i ES E Mn
|x * =x 27 x OE E Vx
=i E E J il +{x Ex{nx E i Ex E
B |i E*

Before I close, I would like to place on record my deep sense


of gratitude to all share holders, Government of India and RBI
for their unstinted support and continued guidance. The Board
of Directors has always been supportive and I thank the
members of the Board for their encouragement and guidance.
Cordial atmosphere in the Bank continued during the year
and the participation of rank and file in the business
development deserves a word of appreciation. It is the
confidence of 27 million customers which keeps up our spirits
and inspires us to perform better.

19. rlfUMo

19. Conclusion

E +{x xn +ii E 148J + < + {


E E 22000 +vE ES E + Ce +
+vE =kS< { {Sx i =iE] |nx Ex E |iri
ni *

The Bank has stepped into 148th year of its existence and on
this glorious occasion, I on behalf of over 22000 employees
of the Bank, reiterate the commitment towards excellence in
service for reaching greater heights in future as well.

CJrt
5 <, 2012

Yours sincerely,

(V.{. n+)

+vI B |v xnE

5th May, 2012

(J. P. Dua)
Chairman & Managing Director

<n E

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

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


Sx

NOTICE

Binu Sx n Vi E <n E E vE E
n E + `E {i, 14 Vx, 2012 E {x
10.30 V, { +b] , <]x Wx ES x], i
ES ]{C, +<-201, C] - III, ] E ],
EEi - 700106, +Vi E VBM V xxJi n
{ E E VBM: :

Notice is hereby given that the Tenth Annual General Meeting


of the shareholders of the Bank will be held on Thursday, the
14th June, 2012 at 10.30 A.M. at Purbashree Auditorium,
Eastern Zonal Cultural Center, Bharatiyam Cultural Multiplex,
IB-201, Sector-III, Salt Lake City, Kolkata-700106, to transact
the following business (es) :-

1. lli 31.03.2012 E E E ix-{j il 31.03.2012


E {i i -x J, < +v i E E
E + Miv E xv xnE b E |inx
+ ix-{j il J+ { J{IE E {] { SS,
+xnx B +MEh*

1. To discuss, approve and adopt the Balance Sheet, Profit


& Loss Account of the Bank as at and for the year ended 31st
March, 2012, the Report of the Board of Directors on the
working and activities of the Bank for the period covered by
the Accounts and the Auditors Report on the Balance Sheet
and Accounts.

2. <C] { E Ph*

2. To declare Dividend on Equity Shares.

xnE b E +n
lx: EEi
iJ: 05-05-2012

By order of the Board of Directors


Place : Kolkata

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

Date : 05-05-2012

(J.P. Dua)
Chairman & Managing Director

x] :

NOTES:

1. LDJK/A E xH :

1. APPOINTMENT OF PROXY

E ={li x + inx Ex E En vE E

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


also entitled to appoint a proxy to attend and vote instead of
himself/ herself, and such a proxy need not be a Shareholder
of the Bank. The proxy form in order to be effective must be
received by the Bank at its Share Department, Head Office, 2,
Netaji Subhas Road, Kolkata-700 001 not less than FOUR
DAYS before the date of the Meeting i.e. on or before the close
of business hours of the Bank i.e. upto 2.00 P.M. on Saturday,
the 9th June, 2012. Please note that any employee or officer of
Allahabad Bank cannot be appointed as proxy as per
provisions of Allahabad Bank (Shares & Meetings)
Regulations, 1999.

2. |vEi |ixv E xH :

2. APPOINTMENT OF AN AUTHORISED REPRESENTATIVE

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


vi |vEi |ixv E { i iE E ={li x
EM +l inx x E EM V iE E vi |vEi
|ixv E { =E xH Ex E{ E |i = `E,
V = {i E M , E +vI u i|i E {
|hi E M , E E |vx E E M 2, xiV
b, EEi 700001 `E E il +vEi S
nx { +li x, 09 Vx, 2012 E E{i +li
+{x 2.00 V iE = { |{i VB* E{ x] E E
<n E ( + `E) xx, 1999 E +x E E
E ES +l +vE E |vEi |ixv E {
xH x E V Ei*

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


a duly authorized representative of any body corporate which
is a shareholder of the Bank, unless a copy of the resolution
appointing him/her as a duly authorized representative,
certified to be a true copy by the Chairman of the meeting at
which it was passed, has been deposited at the Head Office
of the Bank with Share Department, Allahabad Bank, 2, Netaji
Subhas Road, Kolkata-700 001 not less than FOUR DAYS
before the date of the Meeting i.e. on or before the close of
business hours of the Bank i.e. upto 2.00 P.M. on Saturday,
the 9th June, 2012. Please note that an employee or officer of
Allahabad Bank cannot be appointed as authorized
representative as per provisions of Allahabad Bank (Shares
& Meetings) Regulations, 1999.

vhtuGe xH Ex E E V =E + E ={li
+ inx E + B vhtuGe E E E -vE x
+E x * vhtuGe E | xx i E E
M |vx E, 2, Bx. B. b, EEi - 700 001
`E E il S nx +vE x +li
x, 09 Vx, 2012 E E {i +li +{x 2.00
V iE = { + |{i Vx SB* E{ x] E
E <n E ( + `E) xx 1999 E +x
E E E ES +l +vE E vhtuGe E { xH
x E V Ei*

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

3. ATTENDANCE SLIP-CUM ENTRY PASS

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

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

4. vE E V] E xn E Vx :

4. CLOSURE OF REGISTER OF SHAREHOLDERS

n E + `E E v + E u Pi , n
E< , |{i Ex E En vE E xvh Ex E |Vx
E E vE E V] + +xih x,
26 <, 2012 {i, 14 Vx 2012 iE (nx nx )
n M*

The Register of Shareholders and the Share Transfer Books


of the Bank will remain closed from Saturday, the 26th May,
2012 to Thursday, the 14th June, 2012 (both days inclusive)
in connection with the Tenth Annual General Meeting and for
the purpose of determining the eligibility of the shareholders
entitled to receive the dividend, declared by the Bank.

5. E Mix :

5. PAYMENT OF DIVIDEND

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

Payment of dividend, if declared by the Shareholders in the


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

E) G 25 <, 2012 E lli E {i { <C]xE


J E v Bx.B.b.B./.b.B.B.
u i fUe stlu Jtte mqae fuU ylwmth ytih

a)

as Beneficial Owners as at the close of business hours


on Friday, the 25th May, 2012 as per the lists to be furnished
by NSDL/CDSL in respect of the Shares held in electronic
form and

J) iE vh Ex vE 25.05.2012 E
E E {i { |{i v +ih +xv E |
Ex E n G, 25 <, 2012 E vE E V]
M*

b)

in the Register of shareholders as on Friday, the 25th


May, 2012 after giving effect to the valid transfer requests
received from the shareholders holding shares in
physical form, before close of business hours on 2505-2012.

B vE E ] Vxx Bx<B u +{x


E V Ex i E{ x n , Pi x E iJ
30 nx E +xn V] + +ih BV] +li
BB . E v =xE {VEi {i { V VBM*

Dividend warrants to such shareholders who have not opted


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

B vE Vxx Bx<B u +{x E V Ex


i E{ n , =xE <B +vn E +x{ =xE E Ji
v V Ei B Bx<B E v E
Mix E VBM* Bx<B x/{ Vx E n
] vi vE E V E VBM*

The shareholders who have opted for NECS credit of their


dividend will be paid dividend through NECS by directly
crediting the dividend amount to their Bank account as per
their ECS mandate. In case of failure/ return of NECS, the
dividend warrants will be issued to the respective
shareholders.

E Mix E il 29 Vx 2012 M*

The dividend payment date will be 29th June, 2012.

6. +nk/+nEi

6. UNPAID/UNCLAIMED DIVIDEND

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


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

As per section 10B of Banking Companies (Acquisition and


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

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


Ji +ii EB Vx E iJ i E n xE I
+ Ih xv +ii EB VBM*

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


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

Vx vE x k 2010-11 iE +{x E n x
E =x +xv E V] + ] BV] .
BB ]b, EEi E { v n(n) nJ E*

Shareholders who have not claimed their dividend upto the


financial year 2010-11 are requested to lodge valid claim(s)
with Registrar and Share Transfer Agent M/s MCS Ltd, Kolkata.

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

7. BANK MANDATE FOR DIVIDEND OR NATIONAL


ELECTRONIC CLEARING SERVICE (NECS)

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


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

7.1 In order to protect the investors from fraudulent


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

<x h E ] E SE { x E ll pi E VBM iE <x ] E vE <i


E +x H u x x V E*

These particulars will be printed on the cheque portion


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

={H h |l / BE vE u v n J 12
=Ji EEi li +ih BVx] +li
BB .E |ii E VBM V J, J
MB E J, bM E h +n n VBM*

The above mentioned details should be furnished by


the first/sole holder, directly to the Registrar and Share
Transfer Agents of the Bank i.e. M/s MCS Ltd. Kolkata at
their address mentioned at Point No. 12, quoting the
folio number, number of Shares held, details of the
holdings etc.

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


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

7.2 The Bank is offering the facility of NECS to the


shareholders of the Bank for payment of dividend through
electronic mode. For credit of dividend directly to the
Bank account of the shareholders through NECS the
Bank Account of the shareholder should be with a
Centralized Banking Solution (CBS) and NECS enabled
Branch of Bank.

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


E |{i x E +{x-+{x E Ji v V
Ex i +{x b{V] {]{] (b{) +{x E Ji E
+tix E *

The shareholders holding shares in electronic form are


therefore requested to get their Bank Account updated
with their Depository Participants (DPs) for receiving the
dividend by direct credit in their Bank Account.

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

The shareholders holding shares in Physical form may


submit the ECS mandate duly signed by the First/Sole
holder for receiving the dividend by direct credit in their
Bank Account to Registrar and Share Transfer Agent
M/s MCS Ltd. Kolkata.

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


{ E Vx :

8. COMPULSORY TRADING OF SHARES OF THE BANK IN


DEMATERIALISED (DEMAT) FORM

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

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


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

10

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

The Bank has entered into an agreement with National


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

b]<Vx i +xv vi b{V] M E v


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

Request for dematerialization may be sent through respective


Depository Participants to our Registrar and Share Transfer
Agent.

9. +n

9. UNCLAIMED SHARES

+n E h xxx :
i)
ii)

01.04.2011 E lli E /
+n
2011-12 E nx l E Ji
+ii

The details of unclaimed shares are as under:


i)
4126
ii)

-x

Shares outstanding/unclaimed as
on 01-04-2011

4126

Shares claimed and transferred to


Beneficiary account during the
year 2011-12

Nil

4126

31.03.2012 E lli E/
+n
4126
E/+n E v ivE { VV u n
EB Vx iE E M M*

iii) Shares outstanding/unclaimed as on

10. ix-{jE |i

10. COPIES OF BALANCE SHEET

vE E Si E Vi E E |inx E |i
E + `E l { ii x E VBM* +i: vE
+xv E E |inx E +{x |i +{x l E
+B V =x E u =xE vksef]U; {i { V M< *

Shareholders are advised that copies of the Annual Report


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

11. vE E EB :

11. SHAREHOLDERS QUERIES

|zi M n vE i +{x EB |ii E


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

It will be appreciated if shareholders submit their queries, if


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

12. +ih BVx] E l {jS :

12. COMMUNICATION WITH REGISTRAR AND SHARE


TRANSFER AGENT

vE +xv E +{x {VEi {i E |E E


{ix x, +ih/]x i +xv Ex + Mix
vi E B E E V] + +ih +Ei
E xx {i { {E E*

The Shareholders holding shares in physical form, are


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

iii)

31-03-2012

The voting rights in respect of the unclaimed/outstanding


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

BB ]b
(x]: <n E)
77/2B, W b
EEi - 700029
n : 033-2454-1892-93, 033 - 407204051 mu 54
C : 033-24541961
<- : allahabadbank.grievance@yahoo.co.in

M/s MCS Limited


(Unit: Allahabad Bank)
77/2A, Hazra Road
Kolkata-700029
Tel : 033-2454-1892-93, 033 - 407204051 to 54
Fax: 033-24541961
E-mail: allahabadbank.grievance@yahoo.co.in

11

vE E, S =xE { iE { +l
<C]xE(b]) { , vi +{x E/Ei
V] B +ih BV] E =H {i { Vx SB*

The dividend related query/complaint by all the shareholders


whether holding shares in physical or electronic (demat) form
should also be addressed to the RTA at their above mentioned
address.

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


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

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


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

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

14. In order to facilitate quick and efficient service to the


shareholders, Allahabad Bank has set up Investors
Grievances Cell at its Head Office, Kolkata. Shareholders
and investors may contact this Cell at the under
mentioned addresses for any assistance:

|vE (k B J), + B +x{x +vE


<n E, |vx E 2, Bx.B.b,
EEi - 700 001
n : 033-22420899
C : 033-22107424
<- : gmfa@allahabadbank.in

|vE
M B xE Ei EI
|vx E
2, Bx.B.b, EEi - 700 001
n : 033-22420878
C : 033-22107424
<- : investors.grievance@allahabadbank.in

The General Manager (F&A),CFO


& Compliance Officer
Allahabad Bank, Head Office
2, Netaji Subhas Road,
Kolkata- 700 001
Telephone No. 033-22420899
Fax No. 033- 22107424
E-mail - gmfa@allahabadbank.in

The Manager
Share Deptt. & Investors Grievance Cell
Head Office
2, Netaji Subhas Road, Kolkata- 700 001
Telephone No.033-22420878
Fax No. 033- 22107424
Email-investors.grievance@ allahabadbank.in

15. +x Sx :
vE E{ x] E E `E E< ={/E{x ii
x E VBM*

15. OTHER INFORMATION


Shareholders may kindly note that no gift/coupon will be
distributed at the meeting.

xnE b E +n
lx : EEi
nxE : 05-05-2012

By order of the Board of Directors

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

Place : Kolkata
Date : 05-05-2012

12

( J.P. Dua)
Chairman & Managing Director

<n E

ALLAHABAD BANK

xnE E {]
+| 2011 S 2012

DIRECTORS REPORT
APRIL 2011 TO MARCH 2012

xnE b E 31 S 2012 E {i i E E J{Ii


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

The Board of Directors has pleasure in presenting the


Directors Report along with the audited Statement of Accounts
of the Bank for the year ended 31st March 2012.

|vx SS B h

MANAGEMENT DISCUSSION AND ANALYSIS

] +lE {

MACRO ECONOMIC ENVIRONMENT

E P]xG

GLOBAL DEVELOPMENT

k 2011-12 E Sxi{h * E nx +vE


+ll+ x =i{nx B { r E l {< Ex
E n l* +xE Ei B =i < +llB E]-{
li iE {S SE l* iE E EU n i E]-{ li
E { E MB l, Ei k 2011-12 E {i M
Ij SxMi VE @h E] + +E k +ix
E {h{ +< n E { n Z]E M* +lE
E E S { Ex{nx +xSii x < l* 2012 E
Sl i +E +ll 3% E r < V 2010 E
n i E + iE E =SSi r * { Ex E
+i {xx E +x 2012 Ij n
VE =i{nx 0.3% { ESi * Sx x 2011 9.2% r
E n 2012 i +{x r E +xx vi E 7.5% E*
Sx x MM ix +lE E E v Mi E l
r E + 2012 E |l i <x 8.1% E +lE
E n nV E* i i +x J =i +ll+
r n v * V E +ll 2011 E 7.5% r E
{I 2012 r 2.7% * k |ix, i @h i
E Eh MM 4% E r <* +i] p
E (+<BB) E |CEx E +x 2012 E =i{nx
r 3.3% V Ei +ll+ r 1.2% +
=i +ll+ r 5.4% *
P P]xG

The Financial Year (FY) 2011-12 has been quite challenging.


During the year, most of the economies started recovering
with augmented output and trade. Many developed and
emerging economies reached pre-crisis levels. Even some
countries surpassed pre-crisis trends. But in the later part of
FY 2011-12, the second shock precipitated in the form of
structural sovereign debt crisis in the euro area and slowdown
led by the fiscal imbalance in the US. The performance has
been tumultuous on the economic growth front. The US
economy expanded 3.0% in Q4 of 2012 the highest pace
since Q2 of 2010. According to the interim forecast of the
European Commission, the euro area underwent a mild
recession in 2012 with output contracting by 0.3%. China
after growing at 9.2% in 2011 has revised estimates of its
growth for 2012 to 7.5%. Chinas economy grew at its weakest
pace in nearly three years in Q1 of 2012 registering 8.1%
growth. Growth also slowed in other key emerging economies
including India. The Brazilian economy grew by 2.7% in 2012,
compared with growth of 7.5% in 2011. Russia stood with
moderate growth of around 4% due to fiscal stimulus, large
credit expansion. As per IMF (International Monetary Fund)
estimates, the world output growth is 3.3% with advanced
economies growth at 1.2% and emerging economies growth
at 5.4% in 2012.

i +ll x E n, =SS pi B =SS V n


E {h{ E i n E |i nx E Vn
2011-12 E nx ilxi n< * xh Ij n
+ Jxx =i{nx M] r { n {c * k
2011-12 i |CEi E P =i{n r 6.9% * +lE
Ih 2011-12 E +x 2011-12 E nx E B r Ij
|{i E Vx +xxi r n 2.5% * 2011-12 bu

Indian economy, despite showing the trend of slowdown in


recent quarters as a result of global slump, high inflation and
high interest rates has shown resilience to growth during FY
2011-12. The deceleration in manufacturing and reduction in
mining output put pressure on growth. The estimated GDP
growth is 6.9% for FY 2011-12. Agriculture and allied sectors
are estimated to achieve a growth rate of 2.5% during 201112 as per the Economic Survey, 2011-12. Agriculture including allied activities accounted for 13.9% of GDP in 2011-12.
Industrial growth is pegged at 4-5% and is expected to improve. During FY2011-12, the growth rate of the core sector
industries was 4.3% as against 6.6% in 2010-11. Services
Sector grew at 9.0% in 2011-12.

DOMESTIC DEVELOPM.ENT

mfUt Dhutq Wvt= b f]UrM mrn; mkc dr;rJr"gt fUt r;N;


13.9% hnt> +tME E n 4-5% iE x + <

r x E +xx * k 2011-12 E nx J =tM


Ij E r n 2010 -11 E 6.6% E {I 4.3% l* 2011-12
Ij 9.0% E r <*
13

2013 E xB

Outlook for 2013

2012-2013 E P =i{n g E 7.6% + 201314 8.6% x E x V E + li E


xB | * +lE v E +xx E +x +tME r
v E x * E +i pi fuU E x E
x V i: x Miv gM + E {
EiE | {cM* S k E =kv E nx Vx
E Mi E] E +vE x Ex Jttu i { Ij lu
IhiE ni B { + +E { xi E EE
+{x V fUtu i{E rJrJr"f]U; rfUgt ni*

Outlook for growth and stability is promising with real GDP


growth expected to pick up to 7.6% in 2012-13 and 8.6% in
2013-14. Industrial growth is also expected to improve as
economic recovery resumes. Inflation is expected to start slowing down by the year-end which is likely to spur investment
activities leading to positive impact on growth. Indias trade
sector, which has had to bear the brunt of deepening Euro
zone crisis during the second half of the current fiscal, has
successfully diversified its markets with reduced dependence
on the EU and the US showing prospective trends.

EM + k Ij P]xG

BANKING & FINANCIAL SECTOR DEVELOPMENT

{U EU i E k V x +{IEi +vE {` +
ii +Vi E * k 2011-12 E nx VJ i
+i +x{i M] + M-x{nE +i E i
r E Vn i E Vi x * {V {{ii +x{i E
i xvi xnb >{ * k V +Sx x
E c v E E Ei * k |h +M +
Eh, Ex, xx + vEh x EM
+ +vE Sxi{h x *

Financial markets in India have acquired greater depth and


liquidity over the years. During FY 2011-12, Indian banks remained robust, notwithstanding a decline in capital to riskweighted assets ratio and a rise in non-performing asset
levels in the recent past. Capital adequacy levels remain
above the regulatory requirements. The financial market infrastructure continues to function without any major disruption. With further globalization, consolidation, deregulation,
and diversification of the financial system, the banking business becomes more challenging.

k 2011-12 E nx +xSi hVE E (B)


u |nx E M E @h 30 S 2012 E lli 19.18%
({U E x +v 21.51% l) < il E
E V r {U E x +v E 15.9% E {I
71.40% * +xSi hVE E E r i
V E E +xx E +x @h E Ij 18% + V E
Ij 17% * {U EU i E k V x
+{IEi +vE {` + ii +Vi E * 1991 + B
v v-v i +ll + <E k |h
E +ll E l Vx + Ex Ei E *
EV E +lE {o + +i] k V
E +xSii+ x <B =i V +ll+ E
|i E * VE VJ E Si x, E Ij ,
E nx +vE iE k V E |i E
V xx E VE @h E | i + +x
+ll+ x +vE =i-Sg E l *

During FY 2011-12, growth in bank credit extended by


scheduled commercial banks (SCBs) stood at 19.18% as
on 30th March 2012 (21.51% the corresponding period of
previous year). The growth in aggregate deposits has been
17.40% on the same date as against 15.9% of corresponding
period last year. The business growth of SCBs has been in
line with RBIs credit growth projection of 18% and deposits
growth projection of 17%. Financial markets in India have
acquired greater depth and liquidity over the years. Steady
reforms since 1991 have led to growing linkages and
integration of the Indian economy and its financial system
with the global economy. Weak global economic prospects
and continuing uncertainties in the international financial
markets therefore, have had their impact on the emerging
market economies. Sovereign risk concerns, particularly in
the euro area, affected financial markets for the greater part
of the year, with the contagion of Greeces sovereign debt
problem spreading to India and other economies by way of
higher-than-normal levels of volatility.

E nx mbr-+lE ri x Sxi{h V n {
E n * xi: +i + ni+, nx E B V E
n E` * < li E Eh xv E Mi r < +
E nx x V Vx (Bx+<B) { n x* k
+ EM |h E n + =SS pi E n E
x Ex {c* gi Ei E E xji Ex E B
k 2011-12 i V E E { n 5 r
Ex {c* { n E 3 < 2011 E 6.75% gE 7.25%
E M V 5 +H 2011 E gE 8.5% E n
M*

The macroeconomic fundamentals during the year exhibited


challenging interest rate environment. There was hardening
of interest rates in general for both the assets and liabilities.
The cost of funds was escalated due to this situation and put
pressure on NIM (Net Interest Margin) of the Bank during the
year. The financial and banking system have been
experiencing the twin problem of slackening growth and high
inflation. To counter price spiral problems, RBI has increased
Repo rates 5 times in FY 2011-12. The repo rate was increased
to 7.25% as on 3rd May 2011 from 6.75% earlier which further
increased to 8.50% on 5th October 2011.

<n E E Ex{nx

PERFORMANCE OF ALLAHABAD BANK

E E Ex{nx E h k 2011-12 E nx
={H ]-+lE B EM { E {|I E Vx *

The performance of the Bank is to be analyzed concomitantly


with the aforesaid macroeconomic and banking environment
during FY 2011-12.

14

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

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

(` Ec )/(` in crore)
S 10
Mar10

S 11

(%)

S 12

Mar11

Growth (%)

Mar12

Growth (%)

1206

1423

17.97

1867

31.18

2549

3055

19.86

3770

23.42

1972

2894

46.77

3657

26.34

Provisions & Contingencies

1342

1631

21.55

1903

16.65

E + /

9885

12385

25.29

16822

35.82

7337

9331

27.18

13052

39.89

2650

4022

51.76

5163

28.35

106056

131887

24.36

159593

21.01

72437

94571

30.56

112250

18.69

178493

226458

26.87

271843

20.04

38680

43545

12.58

54770

25.78

xnb/ Parameter

x / Net Profit
{SxMi / Operating Profit
]bM E UcE {Sx
Operating Profit Ex. Trading Profit

(%)

|vx B +EEiB
Total Income

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

V |b / Interest Spread
E V / Total Deposits
E +O / Total Advances
E / Total Business
E x / Gross Investments
Ex{nx ]iB

Performance Highlights

E E E rvAtu JMo E ` 2,26,458 Ec E {I


-n- +v { 20.04 % E r ni B gE
` 2,71,843 Ec M*

Total Business of the Bank increased to ` 2, 71,843


Crore as against ` 2, 26,458 Crore in previous year
showing a YOY growth of 20.04 %.

E E {Sx {U E ` 3055 Ec E {I n- +v { 23.42 % E r ni B gE ` 3770


Ec { {S M*
x {U E ` 1423 Ec E {I -n-
+v { 31.18 % E r ni B 31S 2012 E {i
k E nx gE ` 1867 Ec M*

Operating Profit surged to ` 3770 Crore as against


` 3055 Crore last year showing a YOY growth of 23.42%.

Net Profit rose to ` 1867 Crore during the Financial Year


ending 31.03.2012 as against ` 1423 Crore last year
showing a YOY Growth of 31.18 %

x V Vx (Bx+<B) {U E 3.38% E {I
S 2012 E {i k E nx gE 3.48 %
M*

Net Interest Margin (NIM) increased to 3.48 % during the


Financial Year ending March, 2012 as against 3.38%
last year.

E E V {U E ` 1,31,887 Ec gE
`1,59,593 Ec
M<* -n- +v {, E V
21.01% E r < *

Deposits of the Bank went up to ` 1,59,593 Crore from


` 1,31,887 Crore last year. Year-on-Year basis, Total
Deposits grew by 21.01 %.

E @h vAtu JMo E ` 94,571 Ec E {I gE


` 1,12,250 Ec M* -n- +v { E @h
18.69 % E r <*

Gross Credit surged to ` 1,12,250 Crore from ` 94,571


Crore last year. Year-on-Year basis, the Gross Credit
increased by 18.69 %.

}K sbt ylwvt; btao, 2012 fUtu g:tr:r;

Credit Deposit Ratio stood at 71% as at March, 2012.

71%

hnt>
15

Jn @h {U E ` 13029 Ec E {I gE
` 15114 Ec M V k E nx 16% E r
*
S 2012 E {i k E nx M-xv M-V +
{U E ` 857 Ec gE ` 953 Ec M<*

Retail Credit grew to ` 15,114 Crore from ` 13,029 Crore


last year, constituting an increase of 16% during the
financial year.

Non-Fund Non Interest Income during the Financial Year


ending March, 2012 stood at ` 953 Crore as against
` 857 Crore last year.

31S 2012 E lli {V {{ii +x{i 12.83


hnt*

Capital Adequacy Ratio stood at 12.83% as on


31.03.2012.

S 2012 E {i { E +O E ix E
Bx{B + x +O E ix x Bx{B G:
1.83 % + 0.98 % *

Gross NPA to Gross Advances and Net NPA to Net


Advances Ratios stood at 1.83% and 0.98% as at March,
2012 end respectively.

|vx EV +x{i 74% *

Provision Coverage Ratio stood at 74%.

{V B +Ii xv

CAPITAL AND RESERVES

i Vx xM E <C] E +vx +]x E Eh


lli 31.03.2012 E E E |nk {V ` 476.22 gE
` 500.03 Ec M<* E +i +Ii xv + +v
lli 31.03.2011 E ` 8031.71 Ec fE ` 10006.59
Ec MB*

Due to preferential allotment of equity to LIC of India the paidup capital of the Bank increased from ` 476.22 Crore to
` 500.03 Crore as on 31.3.2012. The reserves & surplus
went up to ` 10006.59 Crore as at end of this year from
` 8031.17 Crore as on 31.03.2011.

E E xnE b x 60% E n +li ` 10/- E |i <C]


{ ` 6.00 E ylwNm
k t E *

Dividend
The Board of Directors of the Bank has recommended a
dividend @ 60 % i.e. ` 6 per equity share of ` 10 each.

E B JB

OFFICES & BRANCHES

E E 2516 P JB B MEM BE n J *
2516 P J+ 1033 Oh, 493 +v-, 517
B 473 xM fuUt bu n* E x 2011-12 E nx E x 101
x< JB J Vx 40 Oh, 39 +v-, 9 B
13 xM JB * k x Vx E +iMi 21J+
E I E {I 25 JB J M<* i V E u
xvi vE +{I+ E { Ex i E i Exp 29
il +{E V E +{-E V 34 JB J M<*
<E +iH E nx 2 Ij xIh E, BE <
J + 4 ]<] JB J M<* k 2012-13 E
nx 250 x< JB Jx E E E Vx *

The Bank is having 2516 domestic branches and one


overseas branch at Hongkong. Out of 2516 domestic
branches, 1033 are at Rural, 493 at Semi- urban, 517 at
Urban and 473 at Metropolitan Centre. 101 new branches
have been opened during the financial year 2011-12 out of
which 40 are at Rural, 39 Semi Urban,9 Urban and 13 at
Metro centers. 25 branches have been opened under FI Plan
against target of 21. Further, 29 branches have been opened
at Unbanked centers and 34 in Under Banked Districts of
Under Banked States, fulfilling statutory requirements setup
by RBI. Besides the above, 2 Field Inspection Offices, one
Mobile branch & 4 satellite branches have been opened
during the year. Bank has plans to open 250 new branches
during the fiscal 2012-13.

V Oh

DEPOSIT MOBILISATION

E E E V lli 31.03.2012 E 21.01% E


=Jx r ni B ` 1,59,593 Ec M<* E Mi
V lli 31.03.2012 E 10.22% gE ` 48,668
Ec dR V E V E 30.78 % ni* E x E Mi
V Oh { V n + E nx Si E V
+ E V Oh +x SB MB*

Total deposits of the Bank showed a significant growth of


21.01 % to ` 1,59,593 Crore as on 31.03.2012. Low cost
deposits grew by 10.22 % to ` 48,668 Crore as on 31.03.2012,
constituting 30.78% of aggregate deposits. Bank emphasized
on low cost deposit mobilization and observed saving
deposits & CASA deposits mobilization campaign during the
year.

16

k {h /
xnb

FINANCIALS

Parameters

31.03.10

31.03.11

31.03.12

13.62

12.96

12.83

8.12

8.57

9.13

5.50

4.39

3.71

2.54

3.12

3.24

5.99

5.85

6.98

Average Yield on Funds (%)

8.68

9.19

10.48

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

5.97

5.83

7.07

10.57

10.50

12.09

27.01

31.85

39.18

151.17

178.64

192.93

1.16

1.11

1.02

22.21

21.04

19.35

78.95
0.66

75.67
0.79

74.00
0.98

5.76

6.70

8.36

845

1063

1217

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


V / Of which
] I (%) / Tier I (%)
] II (%) / Tier II (%)
+i E xv |b (%)/
Spread to Average Working Fund (%)

xv E +i Mi (%) /
Average Cost of Funds (%)

xv { +i + (%) /

+O { +i + (%) /
Average Yield on Advances (%)

|i +Vx (`) /
Earnings per Share (`)

|i (`) /
Book Value per Share (`)

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

+i x]l { |i (%) /
Return on Average Net Worth (%)
|vx EV +x{i (%) /
Provision Coverage Ratio (%)
x Bx{B (%) / Net NPAs (%)
|i ES (` J ) /
Profit per Employee (` in lacs)
|i ES =i{nEi (` J ) /
Productivity per Employee (` in lacs)
@h +xVx

CREDIT DEPLOYMENT

E E E +O lli 31.03.2012 E 18.69% gE


` 1,12,250 Ec M* @h - V +x{i (E) Mi E
72.18% E {I 71% * < +v E nx E x |h
+{x V + 2.23% g E 2.39% E * 31.03.2012
E E E SE =v n ({B+) 14.75% * x
V {o E +x{ +O { |i 2010-11E 10.50%
E {I 2011-12 E nx 12.09% *

Total advances of the Bank went up by 18.69% to ` 1,12,250


Crore as on 31.03.2012. Credit-Deposit ratio (gross) stood
at 71 % as against 72.18% last year. The Bank increased its
market share in the system to 2.39 % from 2.23% during the
period. The Benchmark Prime Lending Rate (BPLR) of the
Bank was at 14.75 % on 31.03.2012. Yield on advances stood
at 12.09 % during 2011-12 as against 10.50 % during 201011 in line with the general market scenario.

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

NON-PERFORMING ASSETS (NPAs) MANAGEMENT

31.03.2012 E lli E E E Bx{B + x Bx{B


G: ` 2058.98 Ec + ` 1091.70 Ec l* E +O
+ x +O E Bx{B il x Bx{B E |ii
G: 1.83% + 0.98% * E E x Bx{B Ji
E +SU E l Ei ` 2232.06 Ec E x Bx{B Vc
Vx E Bx{B g M* E E |vx EV +x{i 74%
*

The Gross and Net NPA stood at ` 2058.98 Crore and


` 1091.70 as on 31.03.2012. The Gross & Net NPAs as
percentage to gross advances & net advances was 1.83 % &
0.98% respectively. Though the Bank was able to recover
fairly good amount, due to fresh addition of NPAs to the tune
of ` 2232.06 Crore, the outstanding NPA has increased. The
provision coverage ratio stood at 74%.

17

VE EM
|lEi Ij @h 31.03.2011 E lli ` 30,764
Ec g E 31.03.2012 E lli ` 37,396 Ec
M + < |E <x -n- +v { ` 6633
Ec (21.56%) E r nV E* E x S 2012 E
lli 41.19% E ={v E BBx |I@ E
] I (40%) E { E *

SOCIAL BANKING

Priority Sector Credit grew from ` 30,764 Crore as on


31.03.2011 to ` 37,396 Crore as on 31.03.2012,
registering an absolute YOY growth of ` 6633 Crore
(21.56 %). Bank has exceeded the National Goal
(40.00%) of PSC to ANBC by achieving 41.19 % as on
Mar12.

E @h S 2011 E lli ` 13,387 Ec g E


S 2012 E lli ` 16,590 Ec M + <
|E <x -n- +v { ` 3203 Ec (23.93%)
E r nV E* E x S 2012 E lli 18.06% E
={v E BBx E Ij @h E ] I(18%)
E { E *

Agriculture Credit increased from ` 13,387 Crore as on


March 2011 to ` 16,590 Crore as on March 2012,
registering an absolute YOY growth of ` 3203 Crore
(23.93%). Bank has exceeded the National Goal
(18.00%) of Agriculture to ANBC by achieving 18.05% as
on Mar12.

|iI E @h S, 2011 E lli ` 9808 Ec


g E S 2012 E lli ` 12,304 Ec M +
< |E <x -n- +v { ` 2496 Ec (25.55%)
E r nV E* E x S 2012 E lli 13.56% E
|{i E BBx |iI E @h E ] I (13.55%)
E { E *

Direct Agriculture Credit increased from ` 9808 Crore


as on March 2011 to ` 12304 Crore as on March 2012,
registering an absolute YOY growth of ` 2496 Crore
(25.45%). Bank has exceeded the National Goal
(13.50%) of Direct Agriculture to ANBC by achieving
13.55% as on Mar12.

|lEi Ij B EV M E +iMi E E Ex{nx xxx *


Banks performance under Priority Sectors and Weaker Sections is presented below:

={ Ij

S / Mar-10

SUB-SECTOR

|iI E / Direct Agriculture


(BBx E % )* /(% to ANBC)*
+|iI E / Indirect Agriculture
(BBx E % )* (% to ANBC)*
E E / Total Agriculture
(BBx E % )* / (% to ANBC)*

/ AMT.

S /Mar-11

/ AMT.

S /Mar-12

/ AMT.

8339.81

9807.88

12304.38

14.18

13.86

13.55

3227.60

3578.71

4285.43

4.50

5.06

4.50

11567.41

13386.59

16589.81

18.68

18.92

18.05

(` Ec )

/ (` in Crores)

r (-n-)/ GROWTH(YOY)
S 11 E {I S 12
Mar12 over Mar11
/ AMT.
%
2496.50

25.45

706.72

19.74

3203.22

23.93

I B P =t(BB<)
Micro & Small Enterprise(MSE)

E |I@ / Total PSC


(BBx E % )* (% to ANBC)*
(xnb 40%) / (Norm 40%)
Total MSME (MSE+ME)

EV M / Weaker Section
E BBB< (BB<+B<)/(% to ANBC)*
l / Women Beneficiaries
(BBx E% )* (% to ANBC)
*BBx S 2010:
*BBx S 2011:

`
`

8187.84

11990.30

16182.28

4191.98

34.96

24279.35

30763.73

37396.43

6632.70

21.56

41.29

43.48

41.19

9770.71

14383.89

18446.35

4062.46

28.24

6150.00

7547.00

9487.00

1940.00

25.71

1182.68

33.01

10.46

10.67

10.45

2961.73

3582.45

4765.13

4.19

5.06

5.25

70760 Ec
90782 Ec

*ANBC March2010 : ` 70760 crore


*ANBC March2011 : ` 90782 crore

18

BBB< Ij k{h
<G B P =t(BB<) Ij E @h S 2011 E
lli ` 11,990 Ec g E S 2012 E lli
` 16,182 Ec M Vx -n- +v { ` 4192
Ec (34.96%) E x{I r nV E * S 2012 E
lli <G, P + v =t E @h ` 14,383
Ec g E 31.03.2012 E lli ` 18,446 Ec
M V -n- 28.24% E r ni *

{E H @h x V]BB< E +iMi EV

Credit to Micro and Small Enterprises (MSE) grew from


` 11,990 Crore as on March 2011 to ` 16,182 Crore as
on March 2012, registering an absolute YOY growth of
` 4192 Crore (34.96%). Credit to Micro, Small & Medium
Enterprises (MSME) increased from ` 14,383 crores to
` 18,446 crores as on 31.03.2012, showing a YOY growth
of 28.24%.

E x V]BB< E +iMi EB MB {E H
@h E {nM { i +vE n * 31.03.2012 E
lli V]BB< E yk;do; `1348.63 Ec E 35501
|i E E M *
EB MB xB SxiE =i{n
cfU lu t:rbfU;t Gut }K fuU yklbol rlltkrfU; mkhaltbfU Wvt=
Nwh rfUY n&

Collateral Free Loans vis--vis Coverage under


CGTMSE :
Bank has given much thrust on credit delivery to collateral
free loans covered under CGTMSE. As on 31.03.2012,
35501 proposals have been covered under CGTMSE
amounting to ` 1348.63 Crores.

New Structured Products launched:


The Bank has launched following structured products under
Priority Sector Credit:

Oh + Ij x M E Ij (BxBB) E
xvx { E Si--+ b}] Ji |nx Ex E
Vx*
l
xx E bM E{x ]<+{ E {E |vx
B |nx Ex i += E{x E l ]<+{ E
E +iMi += n { Ex E =i{n @h |nx
Ex E Vx*
l
xE Gb] Eb Vx*
l
+I E-Ex Gb] Eb Vx*
l
<n E + =i{nE Gb] Eb Vx*
<G k l+ (BB+<) E E x
l

Scheme for providing Savings-cum-OD account to NonFarm Sector (NFS) poor families living in Rural/ Urban
areas,

Scheme for extending produce loan to farmers against


Warehouse Receipts under Tie-Up arrangement with
Warehouse companies for providing Collateral
Management Services in Tie-Up with National Bulk
Handling Corporation,

Weavers Credit Card Scheme,

Akshay Krishi-Kisan Credit Card Scheme,

Allahabad Bank Potato Growers Credit Card Scheme

Banks Exposure to Micro Finance Institutions(MFIs)


19 number of MFI accounts involving ` 258.54 crores
has been sanctioned by Bank. As on 31.03.2012,
outstanding prevails at ` 93.08 crores.

E u ` 258.54 Ec E 19 BB+< Ji
Ei EB MB* 31.03.2012 E lli <x E
` 93.08 Ec l*

MSME Sector Financing :

V i E i (BB)
E x BB VE E { ZJb V E +lE
=ilx { nx V J * E V E x B
+{ E Ij |lEi E +v { E JB Jx
E Vx xx JB Jx +Oh E x *
E x i E + ZJb E E EG l
{ i i Gi x E EG E Exi Ex E
B +E En =`B * 31.03.2012 E lli 2000
+vE VxJ 1541 O E EM vB
|nx E n M< * +Oh E E { E x 112 O
EM vB |nx E * B]B v BE <
EM x Si E M< V V 12 M E EM
vB |nx Ei * E x S BE CE bM x
S E * E x - { BB E `E
+Vi E + BB E V E E i SS B
EM { E I E BE og S E { l{i E
*

State Level Bankers Committee (SLBC)


The Bank as SLBC convenor, continued to give thrust for
economic upliftment of State of Jharkhand. The Bank
has been playing a lead role in the state to plan and
open Bank branches in unbanked and underbanked
areas on priority basis. Bank took necessary steps for
implementation of special programmes of Government
of India and Government of Jharkhand such as Bringing
Green Revolution in Eastern India. As on 31.03.2012,
all the 1541 villages with a population of over 2000 have
been provided with banking facilities. As a leader, our
bank provided banking facilities in 112 villages. A mobile
banking van with ATM was also operationalised to cover
12 villages in the state to provide banking facilities. The
bank also started one coin vending machine at Ranchi.
The Bank conducted meetings of SLBC timely and the
SLBC in the state has proved to be a strong forum to
discuss and review banking initiatives for the
development of the state.

19

+Oh E Vx
E x =k |n E 13 ZJb E 2 il v |n +
{S M E BE-BE V i E 17 V +Oh
E ni E { V @h Vx 2011-12 E +iMi
` 2128.66 Ec E I E {I ` 2174.35 E @h
ii E I E 102.15% E *

Ij d{tbeK E (++)

Under Lead Bank responsibilities in 17 districts, 13 in


Uttar Pradesh, 2 in Jharkhand and one each in Madhya
Pradesh and West Bengal, the Bank disbursed
` 2174.35 crores against a target of ` 2128.66 crores
under District Credit Plan 2011-12 achieving 102.15%
of the target

i E x |iE |VE E i BE V BE +.+..


E +{x * < |E + E u |Vi n Ij Oh
E BE =k |n (<n { Oh E, n) E
x + n v |n (n Oh E,ix) E x
* <x nx Ij Oh E x +{x Ex{nx V
Ji B 2011-12 E nx ` 53.43 Ec E x
(I ` 40.00 Ec) +Vi E* Si 2010-11 E
n x ` 558.67 Ec E {I 2011-12 gE ` 612.05
Ec M* E nxn E +x nx ++
E JB B {ii E n M< * Ij
Oh E +{x OE E Bx<B]/+]VB vB
|nx E *

Regional Rural Banks:


Government of India adopted One State One RRB for
each sponsor Bank. Thus the number of Regional Rural
Banks sponsored by our Bank now is two, one in Uttar
Pradesh (Allahabad UP Gramin Bank, Banda) and
another in Madhya Pradesh (Sharda Gramin Bank,
Satna). These two RRBs continued to show their
performance with a net profit of ` 53.43 Crore (Target
` 40.00 crores) during 2011-12. The accumulated profit
stood at ` 612.05 Crores in 2011-12 as against ` 558.67
Crores during 2010-11. As per Government Guidelines,
all the branches of both the RRBs were migrated
successfully to CBS. The RRBs are providing NEFT/
RTGS facilities to its customers also.

k x
i E/i V E E nxn B |Ih E
+x E x b, EM EE, ]E
B]B, B]BH < EM x, +i P JB Jx
+n V z b E +{xi B E x Oh +
Ij EM B |nx Ex E B ` 215.82 Ec
E Mi BE {E k x Vx i E *

Financial Inclusion:
In accordance with the guidelines and observations of
Govt. of India/ Reserve Bank of India, Bank prepared a
comprehensive Financial Inclusion Plan with an outlay
of ` 215.82 Crore to provide banking services in
unbanked rural as well as urban areas through BC
Model, Banking Kiosks, Bio-metric ATMs and Mobile van
fitted with ATM, ultra small branches etc.

E x < +]i 2000 + +vE VxJ 2618


O E + 2000 E VxJ 15549 O E E
E * k x E +iMi Vn 5 n-n
J+ E +iH 25 n-n +x JB J
V <xE J 2011-12 i xvi 26 J+ E
I g E 30 M< *

Lead Bank Scheme:

The Bank has covered the 2618 villages allotted to it


with population of 2000 and above and 15549 villages
with population less than 2000.In addition to existing 5
Brick & Mortar Branches, Bank has opened another 25
Brick & Mortar Branches taking the total no. of B&M branch
under Financial Inclusion to 30, exceeding the target of
26 branches during the FY 2011-12.

E{] VE ni
E x BE Vn E{] xME E { VE Eh
+ E E |i +{x E Vii B V E ii
E E n +xE ={ EB Vx EU
xxi :
l
Ex/VM + E Oh VM |Ih
lx(+B<]+<) E v |Ih vB |nx
Ex
E x Ex, VM +, BxV+, BBSV +n
E =xE E B =ti Ii v x i {S
+ Oh VM |Ih lx (+B<]+<)
l{i EB * < |E ix E E 18 +B<]+<
* 2011-12 E nx 262 EG +Vi EB
MB + 8317 Ex/VM + E |Ih n
M Vx 3396 |Ihl E E @h vB
|nx E M<*

CORPORATE SOCIAL RESPONSIBILITY


The Bank, as a responsible Corporate Citizen, has
initiated several measures towards sustainable
development of the society reflecting its concern for
social welfare and developments, some of which are
as under :
l

Training Facilities to Farmers / Unemployed


Youths through RSETI
The Bank has established five more Rural Self
Employment Training Institutes (RSETI) this year
for imparting training to Farmers, unemployed
youths, NGOs, SHGs etc. for improvement of skills
and entrepreneurship ability. Thus the Bank has at
present 18 RSETIs. During the FY 2011-12, 262
programmes were conducted upto Feb, 12 and
extended trainings to 8317 farmers / unemployed
youths, out of which 3396 trainees were linked to
Bank Credit.

20

k Ii + @h { Exp(BB)

k Ii B @h { Exp E =q k
I + @h { |nx Ei B k x E
{ E og Ex * E x i V E
u +xvi (k o] Si) Exp 13
BB l{i EB *

Financial Literacy and Credit Counseling Centres


(FLCC) aims at strengthening financial inclusion
initiatives by providing financial education and credit
counseling. Our Bank is having 13 FLCCs at RBI
identified (financially excluded) centers:

ix < x E M< V ZJb V E nE


J E +iMi 12 O E, i{, =k |n E
E J E +iMi 4 O E + x< n E
J J E +iMi 6 O E EM |nx Ei *

Three Mobile vans were launched at Dumka branch


of Jharkhand State covering 12 villages, Kasraila
branch of Sitapur, U.P. covering 4 villages and
Khaira Branch in New Delhi, covering 6 villages.

+i] EM :

E +{x +i] 54 |vEi/xq] J+


E v Si Ei Vx 5 +xi] JB
+ MEM li BE n J * 31.03.2012
E lli E E xi @h ` 2808.61 Ec * E
xiE E + +vE @h |nx Ex i En =` *
E x |J n E E l E{b] v xB J
+ <E { 15 n E E l z E xzzo
]] <]Cx *
n ={li

INTERNATIONAL BANKING
The Bank carries out its International business in India
through its 54 authorised/ designated branches, which
includes 5 International branches & through its overseas
branch at Hong Kong. Export credit of the Bank as on
31.03.2012 stood at ` 2,808.61 crore. The bank is taking
all steps to increase the credit flow to exporters. The
Bank maintains correspondent relationship with prime
banks abroad and has Standard Settlement
Instructions in various currencies with 15 foreign banks.

E E MEM BE n J * MEM J E
31.03.2011 E ` 3284 Ec E {I 31.03.2012
E gE ` 5327 Ec M* MEM J x 2010-11
E ` 19.01 Ec E {I 2011-12 E nx ` 48.10
Ec E x +Vi E * E E xZx, Sx
BE |ixv E il xE nxn E +x
E x Sx BE {h J Jx i i V E E
+nx E * E x fE, P<, M{ B E=x(M EM)
n JB Jx i xE E l E ytdu
c\Ztgt *

Financial Literacy and Credit Counseling Centres


(FLCC) :

Overseas Presence
Bank is having one overseas branch at Hong Kong.
The Business of Hong Kong branch has increased from
` 3,284 crore as on 31.03.2011 to ` 5,327 crore as on
31.03.2012. The Hong Kong branch has earned a net
profit of ` 48.10 crore in 2011-12 as against ` 19.01
crore in 2010-11. The Bank is also having a
Representative Office at Shenzhen, China and in terms
of regulatory guidelines, Bank has applied to Reserve
Bank of India for opening of a full fledged branch in
China. Bank has taken up with the regulators regarding
opening of overseas branches at Dhaka, Shanghai,
Singapore & Kowloon (Hong Kong).

] @h

RETAIL CREDIT

E ] @h =iE]i x i x<-x<
xB ii * ] @h =i{n V E z
M E HE, ={H + E +Ei E {
Ex =i{n E h i * E x n E i{h
Exp ExpEi ] EM ]E(+) J E
] @h |i E Oh E ih E z
|G+ E ExpEi E *

The Bank has always been keen on exploring novel


avenues to excel in Retail Credit business. A mosaic of
Retail Credit Products caters to the personal, consumer
and business needs of various sections of the society.
The Bank has centralized various processes from
mobilization to disbursement of Retail loans, by opening
Centralized Retail Banking Boutiques (CRBBs) at
important centers across the country.

E x n 27 + B 61 ] EM ]E
E Vn x]E 7 xB + Vc * 31.03.2012
E lli ] @h E +iMi E E ` 15114.00
Ec l V E @h E E 13.41% + E
nx 16% E r ni * ` xME E ni
+Ei+ E +x{ E x k 2011-12 E nx
n x< ] k VxB + E +li + @h Jb E
+iMi +E +x + {x i HE @h*

The Bank added 7 new CRBBs to the existing network


of 27 CRBBs & 61 Retail Banking Boutiques (RBBs)
spread across the country. Outstanding under Retail
Credit as on 31.03.2012 stood at ` 15114.00 Crore that
is 13.41% of the Gross Credit Outstanding exhibits an
increase of 16.00 % during the year. During the fiscal
2011-12 Bank launched two new Retail Finance
Schemes, i.e. ALLBANK AASHIANA under Housing
Loan segment & PENSIONERS PERSONAL LOAN to
meet the changing requirement patterns of the senior
citizens.

21

E x x E k{h i z +]< xi+ E


l EB MB ]<+{ E +iH BE +Oh +]<
xi ]] ] E l ]<+{ E *

Bank entered into tie-up with the leading Automobile


manufacturer M/s Tata Motors Ltd. for financing their
vehicles in addition to the various Automobile
manufacturers,

15 J iE E + @h { 1% V +xnx E v
k j u E M< Ph E E u Exi E V
*

Scheme of 1% interest subvention on housing loans up


to ` 15 Lac announced by Finance Minister is being
implemented by the Bank.

E +vi +

Fee Based Income:

Oi: E E E +vi + 31.03.2011 E lli


` 857 Ec E {I 31.03.2012 E gE ` 953 Ec M<
V 11.20% E r ni *

Performance under overall fee based income of the Bank as


on 31.03.12 stood at ` 953 crore as against ` 857 crore as on
31.03.11 registering a growth rate of 11.20%

E u E E l E M Zi Y{x

MOU entered with the Government by the Bank

E x k 2011-12 i E +vi + E +iMi E


+ E 7% E ={v(={v 5.71%), k 2012-13 i
E + E 10%, k 2013-14 i E + E 15% +
k 2014-15 i E + E 20% E ={v i i
E E l Zi Y{x { iI EB *

The Bank has signed MOU with Government of India under


fee based income to achieve 7% of total income for FY 201112(achievement 5.71%); 10% of the total income for FY 201213; 15% of Total Income for FY 2013-14 and 20% of total income for FY 2014-15.

E J M

GOVERNMENT ACCOUNTS DEPARTMENT

Exp E E {x +li Exp , I, B ]E


E {x |G b i {{, Jx> +| 2011
ExpEi E n M< * {{, Jx> E 01.11.2011
Exp {x J E u |vEi E M *

Processing of Central Government Pensions viz. Central Civil,


Defence, Railways & Telecom of all the Zones centralized at
CPPC, Lucknow since April 2011.CPPC, Lucknow is authorized by the Central Pension Accounting Office with effect from
01.11.2011.

{S M, =c + ZJb E E hVE E E
Oh <-Mix {ri E v G: 06.07.2011,
15.09.2011,19.01.2012 E + E M* {{B |h E
02.07.2011 Si E M*

Collection of Commercial Taxes of Government of West Bengal, Orissa & Jharkhand through the e-payment mode commenced from 06.07.2011, 15.09.2011 & 19.01.2012
respectively.PPF Remittances automated with effect from
02.07.2011.

Bx{B i {B+bB u 225 J+ E +iH {


{<] + |Vx |<b ({+{-B{)E { |vEi
E M *

225 Branches additionally authorized as Points of PresenceService Providers (POP-SPs) by PFRDA for NPS.
BUSINESS PROCESS RE-ENGINEERING (BPR)

Vx | -<VxM ({+)

Improvement in Productivity, Efficiency & Profitability with introduction of technology enabled products for rendering convenient and attractive services to customers continued to remain the prime focus of the Bank. Centralized Processing
Centre had been established for Back Office activities like
Clearing Process and Pension Processing. Other activities
of the branches like Account Opening, Signature Scanning;
Issuance of personalized Cheque Books etc. has been shifted
to Back Office Processing Centre at Lucknow.

OE E v{E B +EE B |nx Ex i |tME


li =i{n E E =i{nEi, nIi + |ni v
x { E u |Ji vx Epi E Vi * E
+ Miv i ExpEi |G Exp l{i EB MB V
vx |G B {x |G* J+ E +x Miv l
Ji Jx, iI ExM, HMi SEE V Ex +n E
Jx> li E + |G Exp +ii E M ni*
Sx |tME

Information Technology:

2516 J+ + 81 E E B E {v
M * u |Vi Oh E E 567 J+ + 4
i {] E 24.09.2011 E lli B {ii
E M *
B]B E E J gE 316 M< *

All 2516 branches and 81 offices are covered under the


ambit of CBS. All the 567 branches & 4 extension
counters of Gramin Banks sponsored by us have been
migrated to CBS as on 24.09.2011

Total no of ATMs has been increased to 316

E x +{x OE E 12.78 J +vE B]B b] Eb


V EB *

Bank has issued more than 12.78 lacs ATM cum Debit
card to its customers

22

i { E { J+ E Ex{nx E I i
vH |h E =q { n 59 Sxi lx {
< bxx b ExM |h M E M< *

24 +| 2011 E OE i < EM v + E
M< *
E x +{x E{] OE i <]x] EM v E
i E v Ei{ i E l S, xEn @h
+ + b}] Ji ={v *

OE

As part of green initiative high definition video


conferencing system implemented at 59 identified
locations across the country in order to have seamless
communication

Mobile banking facility for the customers launched on


24th April 2011.

Bank has extended internet banking facility to corporate


customers also, the facility has been made available in
current, cash credit & overdraft accounts also with certain
terms & conditions.

Customer Service

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

The Banks Customer Service Committee of the Board is


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

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

Know Your Customer & Anti Money Launderings

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

The Bank has adopted the comprehensive policy guidelines


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

xIh B J{I

INSPECTION AND AUDIT

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


E +{x * < |h E +iMi J{I E Vx J
E VJ |< E n i E Vi + J{I
vx E =SS VJ Ij E + M Vi *
E nx BE + <] x]M EI l{i E M V
{U E n E nx J u xnx EB MB E c
{lx/j] E ii x]M Ei + iiE vE E<
i J+ E l +xi E< Ei * S 2012 E nx
vJvc VJ |vx EI E l{x E M< VE =q
i J{I {] E xE E i |x Ex* <E
+iH E x Bbb B|S E n Ei VJ |vx
vx (+<+BB) E Exx i E]] xH
E *

Bank has switched over to Risk Based Internal Audit (RBIA)


from 1st April 2010. Under this system the audit plan is prepared with reference to the Risk Profile of the branch and
audit resources are directed towards high risk areas.
An Off-Site Monitoring Cell has been established during the
year which undertakes continuous Monitoring of any major
deviation / error in transactions by the branches during the
previous days operation & follows up with them for immediate corrective action. A fraud Risk Management Cell has been
set up during March 2012 with the objective of better administration of Concurrent Audit Report findings. Further, the Bank
has also appointed Consultant for implementation of Integrated Risk Management Solution (IRMS) towards Advanced
Approach.

iEi

VIGILANCE

E x E xE B iEi E Ij +xE x<


{ E ni
iEi q vi <]x] <] Ex V iEi
M vi z q vi i{h nxn B
SxB |ni E Vi *

Bank has taken many new initiatives in the area of preventive


& predictive vigilance in the recent years.
l

23

Introduction of intranet-site on vigilance issues which


display important guidelines and information on various
issues of vigilance department.

E x E vi v q E v +</{
+vE E |Ih nx E { E VE =q =x
V] EM xnx + |G+ E Zx nn Ex
il =x V MB E v E E , Si+ +
|lEi+ E Zx* +</{ +vE
i B BE EG < 2012 +Vi E Vx *

E x iEi q { + B] xE E E i xV
] E 4 +E |Ei EB V iEi, E
rlht"fU iEi vi i{h q { vi{h
ii SxB ] i *

M x z b rlht"fU iEi { EB/


`E +Vi Ex { E V J iEi +vE
x z Vi iEi q { SS E* E,
< vJvc E E|h il E E |h + |Gv
E +x{x SE/{lx vi q { SS E M<*

Bank has taken initiative to impart training to officers of


CBI/ Police on various issues relating to Bank with the
objective to help them understand intricate banking
transactions/procedures and also to understand banks
viewpoints, concerns & priorities in the cases referred
to them. One such training programme for the officers
of CBI/ Police is scheduled to be organised in May, 2012.

Bank has published 4 issues of quarterly News


Magazine on Vigilance matters covering detailed
information on variety of important issues relating to
vigilance, especially concerning preventive vigilance
matters.

Department has taken initiative for organising


workshops/ meetings on preventive vigilance issues
at various zones wherein CVO deliberated on various
burning vigilance issues, especially on modus operandi
of recent frauds & default / deviation in observance of
systems & procedures of the Bank.

OFFICIAL LANGUAGE

E EG xvi I E |{i E =q V xi
E +iMi z |vx E +x{x xSi E M * inx
V +vx E v 3(3) E +iMi niV E u {
V E Vx, xn |{i {j E =k xn n Vx,
x+ ytih i+ E uE { |Ex, Jx O E
uEh +n V vE +{I+ E xSi E M*
E nx xn E EvE Yx x Jx +vE B
ES E c J i E u Si z xn
{`G i xi E M* E nx 187 xn EB
(3159 +vE/ES E Mi) B 75 xn bE
|Ih EG (669 +vE/ES E Mi) +Vi
EB MB*

Compliance of various provisions under the Official Language


Policy was ensured in order to achieve the targets stipulated
in the annual programme. Accordingly, statutory requirements
in regard to bilingual issuance of documents under Section
3(3) of Official Language Act, reply of Hindi letters in Hindi,
bilingual publication of manuals & codes, bilingualisation of
stationery items was ensured. During the year a large
number of officers and employees, not having working
knowledge of Hindi, were nominated for various Hindi
courses conducted by the Govt. of India. During the year, 187
Hindi Workshops (3159 Officers/Employees participated) and
75 Desk Training Programmes (669 Officers/Employees
participated) were organized.

V Exx E Ij x Ex{nx E B E
E +xE ] i E {E |{i B* E E 2009-10 i
V Exx E Ij =iE] Ex{nx E B V
M, M j, i E u |i`i <n Mv V
{E E +iMi |l {E |nx E M M* {E
+vI B |vE xnE x nxE 14 i, 2011E
btlleg Exp M j {. Sn B Exp M V j
B. Sxpx Exp M V j Vixp E ={li
Cth; fUe ]{i xx |i n {] Oh
E*

The Bank received several National level prizes for


outstanding performance in the area of implementation of
Official Language. Bank was awarded First Prize under
prestigious Indira Gandhi Rajbhasha Puraskar for the year
2009-10 for excellent performance in the area of Official
Language Implementation from Official Language
Department, Ministry of Home affairs, Government of India.
The Prize was received by our Chairman and Managing
Director on 14th September, 2011 from Her Excellency, Smt.
Pratibha Devisingh Patil, President of India in presence of
Honble Union Home Minister Shri P. Chidambaram and
Honble Union Home Minister of State Shri M. Ramchandran
and Honble Union Home Minister of State Shri Jitendra
Singh.

E E 2009-10 i V E V b |iMi
E ii Ij E |l lx B Ij J il M
f{UbN& ii lx |{i +* E E M {jE jh v
E V E uE M {jE |iMi 2010-11 E ii
{E |{i +* {E nbthu E{E xnE B.+.
xE, x 1 sql 2011 fUtu CtrhcfU fuU fuUk eg fUtgtotg b ytgturs; YfU
Cg i V E E xx Mx b.
Oh E*
E E M {jE jh v E V E uE M {jE
|iMi 2010-11 nu;w ii {E |{i +* {E
B.+. xE, E{E xnE x {E ih

Our Bank secured First Position in linguistic Region A and


Third Position in linguistic Region B and C respectively
under Reserve Bank Rajbhasha Shield Competition for the
year 2009-10. Our Executive Director Shri M. R. Nayak received
the prizes from Shri D. Subbarao, Honble Governor of
Reserve Bank of India on 1st June, 2011 in a grand ceremony
held at Central Office of the Reserve Bank of India.

Our Bank received Third Prize for Banks Bilingual House


Magazine Triveni Dhara for the year 2010-2011. The award
was received by the Sri M.R. Nayak, Executive Director from

24

i V E E xx Mx b.
Oh E*

Shri D. Subbarao, Honble Governor, Reserve Bank of India


in the R.B.I. Prize Distribution ceremony.

i V E u +Vi +J i +i E xn
xv |iMi 2010-11 E E E E |iM
E |l lx il < |iMi E M E E
|iM E ui lx |{i +*

Two participants of our Bank secured First and Second


Position in linguistic groups A and C respectively in the All
India Inter Bank Hindi Essay Writing Competition 2010-11
organized by the Reserve Bank of India.

xM V Exx i {E E +iMi E E |vx


E E `i |h{j |{i +*

Under the Town Official Language Implementation


Committee prizes, Banks Head Office received the
Shresthata Pramanpatra.

x vx E

HUMAN RESOURCES DEVELOPMENT

x vx E xi +i xx E E E l{i vh E
+x{ E x x {V E ni +Ei+ { Mi
|iG =NtoRo + E E hxi{E +Ei E +x
- { |h xB EE E i E Vn VxH E
Vi E * 2011-12 E n x E x 1541 +vE, {E
M 879 M b +{] + 324 +vxl ] E i
E * E nx 1600 {Ivx +vE B 225 Y
+vE E i |G E E V * E |Ih + Ii
xh { +ivE n * E nx x {V i
<-xM B |Ih E +x E{E =zi Sx { E n
M*

In line with the Banks established conviction that the Human


resources are the greatest asset, our bank has been constantly responding to the changing needs of human capital
and strengthening the existing man power with the infusion
of new blood in the system from time to time in accordance
with the strategic needs of the Bank.During the financial year
2011-12,1541 officers ,879 Single window operator-A in clerical cadre ,324 sub-staff have been inducted in the system.
Further intake of 1600 Probationary officers and 225 specialist officers in lateral line during the year is in the pipeline.Bank
has been giving paramount importance to the training and
capacity building. Much emphasis was laid on e-learning
and other alternate advanced channels of training during the
year.

|S |

PUBLICITY ENDEVOURS

E x ]Vx, b + S{j/{jE+ bM +n E
v ]{ |S +x S* 2011-12 E nx
E E U + b {Sx gx E B E x +{x z =i{n
E {hx B <x E| xx i |S E*

The bank has gone for nation-wide campaign on Television,


Radio, and Newspapers/Magazines, hoardings etc. during
the year 2011-12 for enhancing visibility and Image of the
Bank. Bank has also made publicity for popularizing and
marketing various products of the Bank.

+xM l B H =t

SUBSIDIARY & JOINT VENTURE

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


E{x V E{] E , {Vx Ex, <
|vx, @h x, bS + ]]{ +b<]M E E
M < + Vx 2011-12 E nx ` 2.90 Ec E
nV E* E E +i |vx E{x BB+< (<b) .
+x E/l+ E l 27% E <C] vi *

All Bank Finance Ltd., a wholly owned subsidiary of Allahabad


Bank, engaged in Corporate Advisory Services, Project
Appraisal, Issue Management, Loan Syndication, Debenture
and Trusteeship Underwriting, posted a profit of ` 2.90 Crore
during 2011-12.The Bank holds 27% equity stake in Asset
Management Company ASREC (India) Ltd along with other
Banks/ Institutions

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

The Bank holds 30% equity stake in joint venture company


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

VxB

FUTURE PLANS

E +x E EM Miv E +iH ] , @h
x, h CE E G, BB il E +n {
vx Epi EM*
E n i E Vx x *
xnE b
2011-12 E nx xnE b, b E |vx B J {I
i x G: 16, 20 + 11 `E E* 2011-12 E nx
xnE {nzi i, vE / xE E Ei(xh)

The Bank will focus on Retail Business, Loan Syndication,


Sale of Gold Coins, CMS and Bancassurance etc in addition
to other core banking activities.
The Bank is planning for overseas expansion.
BOARD OF DIRECTORS
The Board of Directors, the Management Committee and the
Audit Committee of the Board met 16, 20 and 11 times respectively during 2011-12. The Directors Promotion Com-

25

i, Sx |tME i, vJvc xMx i, OE


i, {v i, VJ |vx i, xEx i,
+ih i, xM B +]x i x G:
4,2,5,6,4,2,4,1,2,1 B 2 `E E*

mittee, Shareholders/Investors Grievance Committee, IT


Committee, Fraud Monitoring Committee, Customer Service
Committee, Remuneration Committee, Risk Management
Committee, Nomination Committee, Share transfer Committee, Share Issue & Allotment Committee met 4, 2, 5, 6, 4,
2, 4, 1, 21, and 2 times respectively during 2011-12.

E u xi xnE b. E Cx x 15.11.2011 E
b E xnE E { {n Oh E* b. Cx k
M, i E k j xnE E { Ei *

The Govt. Nominee Director, Dr. Shashank Saksena joined


the Board as Director from 15.11.2011. Dr. Saksena is working as Director, Department of Financial Services, Ministry of
Finance, Govt. of India.

i V E u xi xnE B. W=Tdt;t x 13.10.2011


E b E xnE E { {n Oh E* W=Tdt;t
E M, Exp E, i W E, < J |vE
(VB) E { Ei *
b. n{ Sv x 10.02.2012 {x: vE xnE E {
b {n Oh E * Sv 1990 i |vx
lx, EEi | (+lE ) E { B |nx E
*

The RBI Nominee Director, Shri A Udgata joined the Board as


Director from 13.10.2011. Shri Udgata is working as Chief
General Manager (CGM), Urban Banks Department, at Central Office RBI Mumbai.

B.{..Bx. x 10.02.2012 E vE xnE E {


b {n Oh E* BE xk +<BB +vE
* Vx E |x B =tM Ij 36 E +x *

Shri A .P. V. N. Sarma joined the Board as Shareholders


Director from 10.02.2012. Shri Sarma is a retired IAS officer
and is having 36 years of experience in Public Administration
and Industries.

+E V x 10.02.2012 E vE xnE E { b
{n Oh E* V BE xn JE Vx k B
|vx {, J{I, Evx B E E Ij
32 E +x *

Shri Ashok Vij joined the Board as Shareholders Director


from 10.02.2012. Shri Vij is a Chartered Accountant having
32 years experience in the areas of Financial & Management
consultancy, Audit, Taxation and Business Advisory Services.

E nx i Ei J, B. , {.. Mb
bb, b.E. E{, b. E-=V-Vx +, b ..
EVM B b. n{ Sv +{x EE { x { xnE
b xk B*

During the year Smt Sukriti Likhi, Shri S Ramaswamy, Shri P.


V. Guddi Reddy, Shri D K Kapila, Dr. Shakeel-Ul-Zaman Ansari,
Dr. V. B. Kaujalgi & Dr. Sudip Chadhuri retired from the Board
of Directors after completion of their tenure.

ACKNOWLEDGEMENTS

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


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

The Board of Directors records its appreciation for continued


support and patronage of the shareholders/investors of the
Bank. The Board of Directors gratefully acknowledges the
valuable and timely advice, guidance and support from the
Reserve Bank of India, Government of India and other regulatory agencies and look forward to their continued support
and co-operation. The Board of Directors is thankful to the
customers for their continued trust and confidence on the
Bank. The Board records its appreciation for valuable contributions of the outgoing members and welcomes the new
incumbents. The Board of Directors is pleased to place on
record their appreciation for the committed services of all the
employees of the Bank.

xnE b E B + =xE + ,

For and on behalf of the Board of Directors,

nxE : 05 <, 2012


lx : EEi

Dr. Sudip Chaudhuri rejoined the Board as Shareholders


Director from 10.02.2012. Dr. Chaudhuri has been serving
Indian Institute of Management, Calcutta as Professor (Economics Group) since 1990.

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

Date : 5 May, 2012


Place : Kolkata

26

(J.P.Dua)
Chairman & Managing Director

-II E +iMi V |E]Eh


lli 31.03.2012 E x< {V {{ii Sx
VJ |vx
1.

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

2.

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


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

3.

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


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

4.

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


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

5.

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


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

6.

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


|E]Eh ( nx jiE B {hiE)E BE ] h bB 1 bB 10 (Mx ) iE |Ei E
M V V E M B7JKGxx, {V VJ YC{V, VJ Ex |G, E E VJ
|< B {VEh E i +n vi |J Sx+ E Ex Ex nn M* < V E
M E z xnb { E E Ex{nx E +E +Ec EM*

27

MARKET DISCLOSURE UNDER BASEL-II


NEW CAPITAL ADEQUACY FRAMEWORK AS ON 31.03.2012

RISK MANAGEMENT
1.

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

2.

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

3.

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

4.

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

5.

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

6.

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

28

h bB - 1
|Vi
MhiE |E]Eh

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

V {hi: Ei

ii)

V x{iE +v { Ei

iii)

V P]< M< ; il

iv)

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


V x VJ +vi )

B7) |E]Eh E fS <n E { |V V


E *
. ) E E +xM/E E{x + H =t xxx
+xM E{x: E E BE xxJi +xM E{x :
+xM E{x E x
n xMx
i (%)

+ E <xx

31.03.2012 E lli

100%

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

E E x

n xMx

<n =| Oh E*

35%

n Oh E

35%

(%)

* =k

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

E E x

n xMx

(%)

x { Vx
< E{x ]b

30%

BB+< (<b) .

27.04%

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

{hiE |E]Eh
1

Ex x E M< +xM {VMi


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

(& < Ec )

E +xM E v {V E E< + x *
E x H =t +li x { Vx < E{x
]b i xMi , <C] G{x E v < 105.00
Ec E x E V <E E xMi {V E 30% V
E E nxnx VJ |nx E M * i V E
E nxn E +x Ci =t E{x x E E {V
P] M , CE E E x i{h x E i +vE , V
E x l+ E |nk {V E 30% +vE x *
29

Table DF 1
SCOPE OF APPLICATION

Position as on 31.03.2012

Qualitative Disclosures
a)

The name of the top Bank in the group to which


the framework applies.

b)

An outline of differences in the basis of


consolidation for accounting and regulatory
purposes, with a brief description of the entities
within the group
i)
ii)
iii)
iv)

that are fully consolidated;


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

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


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

Country of
Incorporation

Ownership
(%)

India

100%

Associates: Two Regional Rural Banks sponsored by the Bank are


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

Country of
Incorporation

Ownership
(%)

M/S Universal Sompo


General insurance
Company Limited

India

30%

M/S ASREC (INDIA) LTD.

India

27.04%

The Subsidiary, Associates and Joint Ventures are consolidated in


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

QUANTITATIVE DISCLOSURES

(Amount: < in crores)

The aggregate amount of capital deficiencies


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

There is no deficiency in respect of any subsidiary.

The aggregate amounts (e.g., current book


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

The Bank has made investment amounting to < 105.00 Crores by


way of equity subscription in an insurance joint venture i.e., Universal
Sompo General Insurance Company Limited incorporated in India,
representing 30% of the companys paid-up capital. Investment in
the joint venture insurance company is not deducted from Capital of
the Bank as per RBI Guidelines, since the Banks investment is not
above the level of significant investment, which is not more than
30% of the investee entitys paid-up capital.

30

h bB - 2
{V Sx
31.03.2012 E lli

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

{hiE |E]Eh

G .
1

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

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


v E u V nxn E +xh *

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


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

( ` Ec )
500.03
9133.48
300.00

21.31
9912.20
4023.02

1000.00
0.00
1000.00

2611.90
0.00
2099.52
21.31
13935.22

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


G..

+]x
E il

b
( `
Ec )

E{x n

+v

V Mix il

Sr

30.03.2009

150.00

9.20%

|i 30 S

BxB<

18.12.2009

150.00

9.08%

|i 18 n

BxB<

31

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

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


G..

+]x
E il

b
( <
Ec )

E{x n

+v

V Mix il

Sr

]M

19.03.2009

500.00

9.28%

180

|i 19 S

BxB<

18.12.2009

500.00

8.58%

180

|i 18 n

BxB<

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

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


G..

+]x
E il

b
( <
Ec )

E{x n

31.03.2004

200.00

5.90%

13.03.2006

500.00

29.09.2006

+v

b
(]]Ei)
(Ec )

99

0.00

8.00%

120

300.00

561.90

8.85%

120

449.52

25.09.2007

500.00

10.00%

120

500.00

26.03.2009

400.00

9.23%

120

400.00

04.08.2009

450.00

8.45%

120

450.00

2611.90

2099.52

32

V Mix il

Sr

]M

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

Table DF 2
CAPITAL STRUCTURE

Position as on 31.03.2012

Qualitative Disclosures
Summary information on the terms and conditions of the main
features of all capital instruments, especially in the case of
capital instruments eligible for inclusion in Tier 1 or in Upper
Tier 2.
SL
No

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


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

Quantitative Disclosures

(Amount < In crores)

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


1.1 paid-up share capital;

500.03

1.2 reserves;

9133.48

1.3 innovative perpetual debt instruments;

300.00

1.4 other capital instruments;

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

21.31

1.6 Total Tier-I Capital

9912.20

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

4023.02

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


3.1 Total amount outstanding

1000.00

3.2 Of which amount raised during the current year

0.00

3.3 Amount eligible to be reckoned as capital funds

1000.00

Subordinated debt eligible for inclusion in Lower Tier 2 capital


4.1 Total amount outstanding

2611.90

4.2 Of which amount raised during the current year

0.00

4.3 Amount eligible to be reckoned as Capital funds


5

Other deductions from capital, if any.

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

2099.52
21.31
13935.22

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

30.03.2009

BOND
AMT. (in
Rs. Crores)
150.00

18.12.2009

150.00

S.N.

DATE OF
ALLOTMENT

COUPON
RATE

TENOR

INTEREST PAYMENT
DATE

LISTED

9.20%

Perpetual

30th March every year

NSE

CARE- AA
CRISIL- AA+

9.08%

Perpetual

18th December every


year

NSE

CARE- AA
CRISIL- AA+

33

RATING

Information about Innovative Instruments eligible under Upper Tier-II:

19.03.2009

BOND
AMT. (In
Crores)
500.00

18.12.2009

500.00

S.N.

DATE OF
ALLOTMENT

COUPON
RATE

TENOR

INTEREST PAYMENT
DATE

LISTED

9.28%

180 months

19th March every year

NSE

CARE- AA
CRISIL- AA

8.58%

180 months

18th December every


year

NSE

CARE- AA
CRISIL- AA+

RATING

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


S.N.

DATE OF
ALLOTMENT

BOND
AMT. (In
Crores)

COUPON
RATE

TENOR

BOND AMT.
(Discounted)
(in crores)

INTEREST
PAYMENT DATE

LISTED

RATING

1.

31.03.2004

200.00

5.90%

99
months

0.00

31st March
Annual

BSE &
NSE

CARE- AA+
FITCH- AA

2.

13.03.2006

500.00

8.00%

120
months

300.00

13th March and


September
(Semi annual)

NSE

CARE- AA+
CRISIL-AA+

3.

29.09.2006

561.90

8.85%

120
months

449.52

29th September
Annual

NSE

CARE- AA+
CRISIL-AA+

4.

25.09.2007

500.00

10.00%

120
months

500.00

31st March
Annual

NSE

CARE- AA+
CRISIL-AA+

5.

26.03.2009

400.00

9.23%

120
months

400.00

26th March
Annual

NSE

CARE- AA+
CRISIL-AA+

6.

04.08.2009

450.00

8.45%

120
months

450.00

4th August
Annual

NSE

CARE- AA+
CRISIL-AA+

TOTAL

2611.90

2099.52

34

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

31.03.2012 E lli

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


1. i V E x +|, 1992 i E E E B {V {{ii ={ E { VJ +i +x{i |h M E V
@h VJ E P]E l* ix {j +i, M xvE n + +x ix{j x E xvi VJ i xni
E Vi + E E ii +v { E VJ i +i { xvi +x{i E i xxi +Ihh {VMi xv
xB Jx M* E E n M< l E xv +vi + M xv +vi x i E VJ i +i
{ 31 S 1993 iE {V {{ii E 4% E xxi i E + 31 S 1996 iE 8% E xxi i E xB J* inxxi
{V {{ii +x{i E xxi i E 9% iE g M* nxn -* nxn E { Vx Vi *
2. 27 +|, 2007 E E x -II E +iMi x< {V {{ii Sx { +i nxn V EB* <E +iH
i V E x < vi EU i E 31 S 2008 E {]Eh V EB * EU +vE {ix E
] Ei B i V E x 01 V<, 2010 E {V {{ii il V +xx v E{h nxn- x< {V
{{ii Sx E v BE ] {{j V E * <x nxn @h E] + {Sx VJ {] n E
M *
3. i V E E nxn E +x{, E x nxE 31.03.2008 x< {V {{ii Sx E +{x * E Mi
BC{V E +xh Ei B --II Sx E xi |G E V J + E{h vi nxn E
+x{x xSi Ex E o]Eh jE +v { E E +B+ { | E +vx E *
4. -II Sx @h VJ, V VJ + {SxMi VJ E B {V E +Ei xSi Ex i +xE E{
={v Ei * i V E E nxnx E x 31 S 2008, 2009, 2010 + 2011 E i lli 31 S
2012 E {V E Mhx i @h VJ E B xEEi o]Eh (BB) + {SxMi VJ E B EiE o]Eh
(+<B) E +{x * E V VJ E B {V +{I E Mhx i 31 S 2008 xEEi +v o]Eh (BbB)
E +{x * ii:, + iE @h VJ + V VJ E B {V xB Jx E +iH, E nxE 31.03.2008
{SxMi VJ E B {V xB Ji *
5. i V E x E u ii +v { @h VJ, V VJ + {SxMi VJ E v , niV xvi
8 |ii E {I 9 |ii +B+ xB Jx xvi E * -II nxn E +x VJ i {{k
+x{i(+B+) E ix E {V lli 31.03.2012 E 12.83% |ii xEi * ] I +B+ E E
6.00% E xvh E {I 9.13% * xEEi o]Eh E +iMi @h VJ E B {V E Mhx , E x B |h
E u |iE J |{i =vEi +Ec { E * VE xEEi o]Eh E +iMi E E nxn
xvi , E x @h VJ E B {V E Mhx @h VJ ={x E |M E * {Sx VJ B V VJ
i +Ec E Ex |vx E i { E M *
6. E xxi +{x {V Vi E Ex E * i Vx xM u E +vx +]x E v MB
MB < 23.81 Ec E {V E E 58% P]E 55.24% M , V E S B E gx
i {V Sx E +iCi { lx Ex B +{Ii +B+ E { Ex E B E E { ] I + ] II {V
Oh E B {{i b ={v *

G .
1

3
4

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

( < Ec )
8455.26

8455.26
0.00
517.35
391.23
2.71
123.41
799.16

12.83%
9.13%

35

Table DF 3
CAPITAL ADEQUACY

Position as on 31.03.2012

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

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

2.

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

3.

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

4.

Basel-II Framework provides a range of options for determining the capital requirements for Credit Risk, Market Risk
and Operational Risk. In accordance with the RBIs guidelines, the Bank has adopted Standardized Approach (SA) for
Credit Risk, and Basic Indicator Approach (BIA) for Operational Risk to compute capital as on 31st March, 2012 also
like as on 31st March 2008, 2009, 2010 and 2011. The Bank continues to apply the Standardized Duration Approach
(SDA) for computing capital requirement for market risks with effect from 31st March, 2008. As such, in addition to
maintaining capital for credit risk and market risk as hitherto, the Bank maintains capital for operational risk from
31.03.2008.

5.

Reserve Bank of India prescribes Banks to maintain a minimum Capital to Risk-weighted Assets Ratio (CRAR) of 9
percent with regard to credit risk, market risk and operational risk on an ongoing basis, as against 8 percent prescribed in Basel Documents. The total Capital to Risk Weighted Assets Ratio (CRAR) as per Basel II guidelines
works to 12.83% as on 31.03.2012. The Tier-I CRAR stands at 9.13% as against RBIs prescription of 6.00%. In
computation of capital for credit risk under Standardized Approach, the Bank has relied upon the data captured from
each individual branch through the CBS system. The Bank has used the credit risk mitigants in computation of capital
for credit risk, as prescribed in the RBI guidelines under Standardized Approach. The data for Operational Risk and
Market Risk have been consolidated at Head Office.

6.

The Bank is continuously evaluating its capital requirement. The capital infusion of < 23.81 crores by the LICI through
allotment of shares has reduced the Govt.s share to 55.24% from 58%, still leaving sufficient headroom for the Bank
to mobilize Tier I and Tier II capital to additionally support capital structure and meet the CRAR requirements against
current and future business expansion.

Quantitative Disclosures

SL
No
1

(Amount < in Crores)

Capital requirements for Credit Risk:


1.1

portfolios subject to standardized approach

1.2

securitization exposures

8455.26
8455.26
0.00

Capital requirements for Market Risk (Standardize Duration Approach)


2.1

interest rate risk

2.2

foreign exchange risk (including gold)

2.3

equity risk

517.35
391.23
2.71
123.41

Capital requirements for Operational Risk (Basic Indicator Approach)

Total and Tier-1 Capital Ratio:

799.16

4.1

Total CRAR

12.83%

4.2

Tier-I CRAR

9.13%

36

h bB - 4

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

31.03.2012 E lli

1.@h VJ
1.1 =v nx E< i E VJ * @h VJ =vEi+ +l |i{I E @h Mhk vi x E x
*
1.2 @h VJ SE VJ OE +l |i{I u =v, ]bM, VM, x{]x B +x k xnx vi |iri+
E { Ex +xSU +Ii E Eh i * @h VJ +i { xnx VJ SE VJ B M VJ
=i{z i *
1.3 @h +xnxEi |vE, E{h x , =tM x , @h VJ ]M |h, VJ +vi |<M, @h I
ij + @h VJ x V ={Eh E |M E u @h VJ |vx E B E Vi * @h VJ E {E
|ii + M] |i Ei B z =tM + Ij Jb x , E{h x + {{i x =SSi
+ VJ x E v xji E Vi *
2. @h VJ |vx xi :
2.1 E E { b u vi +xni BE li @h VJ |vx xi * xi niV M`xiE Sx, E B ni
il |G+ E {i Ei VE v E E x @h VJ E {Sx, ytfUtl Ex nn i + =xE
|vx = Sx E +iMi E Vi V E +{x +vn B VJ xi E +x{ ={H Zi *
2.2 E u Ji @h VJ E xMx E Vi + b u +xni VJ +/BC{V E{ E +x{x E xSi
E Vi * +iE xjh |h E Mhk E xMx E Vi + @h VJ vi q E Ex i
+iE nIi Ei E Vi *
2.3 =k @h VJ |vx |h Ei Ex i E x i{h En =` * @h VJ |vx xi E +iH, E E {
b u +xni @h xi, x xi, n VJ |vx xi xi +n V @h VJ E xMx E +z +M
* + z xE +{I+ E { /+x vE |vE E x xnb, |lEi Ij xnb, +
+Yx + +i MEh nxn, {V {{ii, @h VJ |vx +n v nxn E n +x{x xSi
Ei *
2.4 <E +iH E E @h VJ x + {E |ii |vx E v b u +xni xi V E E i
E I E B |ii + B |ii E |x E h xvi EB MB * |ii = @h VJ E r
={x E { E Ei V E BC{Vb *
3. E E Sx B |h :
3.1 E VJ |vx |E E xMx + x i xnE b u VJ |vx i (+B) xE xnE
E ={i E M`x E M *
3.2 @h xi i z @h VJ Exi xx + <xE Exx i il xi +v { E E VJ |vx E E
xMx i @h VJ |vx i E M`x E M *
4. @h Ex /+iE ]M :
4.1 E +{x @h VJ E |vx E =vEi B M i { VJ E ii {x B xMx E v Ei * E
E { BE H +iE Gb] ]M Sx + li xEEi @h Ex/+xnx |h *
4.2 +iE VJ ]M/ObM b |vx VJ vi {hiE B MhiE q, VJ, =tM VJ, k
VJ B {Vx VJ * <E +iH, < i E ]M =vEi E O ]M E Ex Ei
] xnx i @h {vx ]i+ { S E Vi * V li E +v { =tM VJ E +Ec xi
+tix E Vi *
4.3 |iE =vEi E ]M E I E Vi * H @h VJ |vx |G E ={ E { E x |vx E + b
E/J i { Ei |i i Gb] ]M |G E ji |h Exi E V @h M <i ]M
E vi (i Sh ) * E E |vx E E H E +iMi +x |i E ]M E vi VJ
|vx M u E Vi *
4.4 E @h E Ei i li -i Evx H Sx E +xh Ei * xB/{vx |i { S
Ex E B |vx E + Ij |vE i { Gb] Ob E M`x E M * xn] E]-+ +vE E xB
@h |i { rii: +xnx |nx Ex i +vI B |v xnE E +vIi |vx E i { x
(BxV) xE Sx E M`x E M * E E { xB =i{n i VJ |vx Sx V xB =i{n E v =xE
{ xxi |G/Ex xnb E xvi Ei *
37

{hiE |E]Eh

G .

<

Ec )

4.

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


1.1 xv +vi
112249.74
1.2 M-xv +vi
14136.50
2.BC{V E ME ih
2.1 n :
2.1.1 xv +vi
4722.58
2.1.2 M xv-+vi
109.88
2.2 P :
2.2.1 xv +vi
107527.16
2.2.2 M xv-+vi
14026.62
3
=tM { E BC{V E ih
xv +vi
49053.00
M-xv +vi
8911.04
+i E +] nMi {{Ci (31.03.2012 E lli +i E ] li)

+i

6
7
8

10
11
12

+M
nx

2-7 nx

8-14 nx

15-28 nx

439.25

464.65

1363.29

1925.76

29-3

3-6

6-12

1-3

3-5

(< Ec )
5

B
+vE

17054.39 19205.51 14414.79 24872.29 12278.31 19126.86 111145.10

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

2058.98
1046.55
453.68
229.91
225.46
103.38
1091.70
1.83%
0.98%
1647.92
2232.06
1821.00
2058.98
863.55
1182.67
1080.64
1.70
967.28
0.90
0.90
2.40
0.00
0.00
1.50
0.90

38

Table DF 4
CREDIT RISK : GENERAL DISCLOSURES

Position as on 31.03.2012

Qualitative Disclosures
1. Credit Risk:
1.1
1.2

1.3

Lending involves a number of risks. Credit Risk is broadly the probability of losses associated with diminution
in the credit quality of borrowers or counterparties.
Credit Risk or default risk involves inability or unwillingness of a customer or counterparty to meet commitments in relation to lending, trading, hedging, settlement and other financial transactions. The Credit Risk is
generally made up of transaction risk or default risk and portfolio risk.
Credit approving authority, prudential exposure limits, industry exposure limits, credit risk rating system, risk
based pricing, loan review mechanism and Credit Risk Mitigants are the instruments used by the bank for
credit risk management. Credit risk is controlled through segmental exposure limits to various industries and
sectors, prudential exposure and substantial exposure ceilings and risk mitigation by obtaining collateral and
guarantees.

2. Credit Risk Management Policies:


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

39

Quantitative Disclosures

SL
No
1

(Amount < in Crores)

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

Fund Based

1.2

Non Fund Based

112249.74
14136.50

Geographic distribution of exposures


2.1

Overseas
2.1.1 Fund Based

4722.58

2.1.2 Non Fund Based


2.2

109.88

4832.46

Domestic
2.2.1 Fund Based

107527.16

2.2.2 Non Fund Based


3

126386.24

14026.62

121553.78

Industry type distribution of exposures


Fund based

49053.00

Non Fund based

8911.04

57964.04

4. Residual contractual maturity breakdown of assets (bucket wise position of assets as on 31.03.2012)

ASSETS
SL
No
5

6
7

10
11
12

Next
day

2-7 d

8-14 d

15-28 d

626.56

1131.60

1717.33

3541.86

29-3m

3-6m

6-12 m

1-3y

3-5y

5y
& above

Total

21659.76 23007.43 16667.04 30495.98 21909.66 50847.24 171604.46

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

40

(Amount < in Crores)


2058.98
1046.56
453.68
229.91
225.45
103.38
1091.70
1.83%
0.98%
1647.92
2232.06
1821.00
2058.98
863.55
1182.67
1080.64
1.70
967.28
0.90
0.90
2.40
0.00
0.00
1.50
0.90

h bB - 5

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


MhiE |E]Eh
1.

31.03.2012 E lli

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

2.

Gb] ]M :

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


BV, xi: (E) Gb] Bx] Bb S . (E) (J) G . (M) S <b . B (P) <E . +
+i] x i (E) ]bb B {+ (J) bV (M) S ]M E ={M E* ={H nxn { S Ei B E
x xh E b u l+xni <..+.B. E n E ]M { xi E +iMi <x <+B u
xni ]M E E E VB*
2.2 ]M |G E Ei xx + OE E =xE BC{V i ]M Ex E B E x <x S <+B Gb]
]M BV E l Zi Y{x x{ni E * E <x Gb] ]M BV u =vEi+ E E |E
E BC{V E B xni ]M E |M EM* {U 15 E nx x< xni IEi ]M E E u
{V {Ex i Yx VBM* Vx =vEi E { Gb] ]M BV E BE +vE ]M ,
{V |l E {Ex i VJ xni Ex E B E u xvi nxn E +x{x E V*
inx, E x 31.03.2012 E lli E{] B {B< Jb E +iMi @h VJ i {V E {Ex E B E E
+xni Gb] ]M BV u =vEi E @h BC{V i xni ]M { S E *
2.3 E{] / {B< E < E E x E +xni Gb] ]M BV E = J < i
xni ]M E Yx M + inx, E E nxn n MB ]M E { {M E
={i VJ +]i E M *
2.4 E c E{]/ {B< =vEi+ E <+B ]M |{i Ex E B |ix ni + V ]M ={v
E x VJ i +i E Mhx i <x ]M E |M E *

{hiE |E]Eh

G .
1

( < Ec )

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


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

55510.33

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

7629.21

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

41989.96

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

4001.49

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

14749.45

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


1. 4 P] M

2505.80

41

Table DF 5
CREDIT RISK : DISCLOSURES FOR PORTFOLIOS SUBJECT TO THE STANDARDIZED APPROACH
Position as on 31.03.2012

Qualitative Disclosures
1.

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

2.

External Credit Ratings:


2.1 The Reserve Bank of India has permitted Banks to use the external ratings of the following External Credit
Rating Agencies (ECRAs) namely (a) Credit Analysis and Research Ltd. (CARE), (b) CRISIL Ltd., (c) FITCH
India Ltd. and (d) ICRA Ltd for mapping of risk weights for domestic exposures and (a) Standard & Poor (b)
Moodys (c) Fitch for international exposure. In consideration of the above guidelines, the Bank has decided to
accept the ratings assigned by all these ECRAs, under the Policy on Rating of Claims by ECRAs duly approved
by the Board.
2.2 In order to facilitate the process of external rating and enabling the customers to solicit external ratings for their
exposures smoothly, the Bank has taken initiatives by entering into separate MOU with all these four ECRAs.
The Bank shall use the ratings assigned for any type of exposures by any of these ECRAs as accepted and
provided by the borrowers. External ratings assigned, fresh or reviewed, at least during the previous 15
months shall only be reckoned for capital charge computation by the bank. Wherever, a borrower possesses
more than one rating from ECRAs, the guidelines prescribed by the RBI is followed as regards to assignment
of risk weight for computation of capital. Accordingly, the Bank has taken into consideration the borrowers loan
exposure ratings assigned by approved ECRAs, while computing capital for credit risk as on 31.03.2012 under
segments namely Corporates and PSEs.
2.3 In case of Banks investment in particular issues of Corporate / PSEs, the issue specific rating of the approved
ECRAs are reckoned and accordingly the risk weights have been applied after a corresponding mapping to
rating scale provided in RBI guidelines.
2.4 The Bank encourages large corporate/ PSE borrowers to solicit ratings from ECRAs and has used these
ratings for calculating risk weighted assets wherever such ratings are available.

Quantitative Disclosures

SL

(Amount < in Crores)

No
1

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

1.1

(a) Below 100 % risk weight (Funded)

1.1

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

1.2

(a) 100 % risk weight (Funded)

1.2

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

1.3

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

1.3

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

1.4

Deducted

55510.33
7629.21
41989.96
4001.49
14749.45
2505.80

42

h bB - 6

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


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

6.

7.

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


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

G .
E.

J.

31.03.2012 E lli

{hiE |E]Eh
{lE { |E]Ei @h VJ M i, E BC{V (V |V
+x +l + ] E x]M E {Si) V E]i E {Si, {j k
{E { Ii
{lE { |E]Ei @h VJ M i, E BC{V (V |V
+x +l + ] E x]M E {Si) V M]/Gb] b<] u
Ii (V E E u { +xi n M< )

43

( ` Ec )

6785.20

Table DF 6
CREDIT RISK MITIGATION : DISCLOSURES FOR STANDARISED APPROACHES
Position as on 31.03.2012

Qualitative Disclosures
1.

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

2.

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

3.

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

4.

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

5.

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

6.

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

7.

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

SL
No
(a)

(b)

Quantitative Disclosures

(Amount ` in Crores)

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

6785.20

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

Nil

44

h bB - 7

E.

J.

(M)

G
.

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


MhiE |E]Eh

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


:
l
|iiEh Miv E v E E =q, = iE VE ii 31.3.2012 E {i i E<
Miv |iiEi BC{V E @h VJ E E <i i +ii
|iiEh x*
Ei *
l
+x VJ (+li ii VJ) |iiEi +i +ixi *
l
E u |iiEh E< x< M< z EB (+li +Vx],
xE, , @h r |ni, ii |ni) + |iE E E Mi
E E Ei
l
|iiEh BC{V E @h + V VJ {ix E x]M Ex
|G E h (+li {vE +i E |E |iiEh BC{V
{ | bi V E nxE 01.07.2009 E BxBB v ] {{j
E { 5.16.1 {i * )
l
|iiEh BC{V E v VJ E x i @h VJ x E
|M E i Ex E E xi E h
|iiEh Miv i E E J xi E , V xxJi :
x
l
C xnx E G k{h x Vi *
l
vi +l G E M< li E x i |M < M< {ri + |J
{xx*
l
{U +v {ri + |J {xx {ix + <x {ix E |*
l
|iiEi +i i k i E B +{Ii l Ex i ix{j
v ni+ E +Yi Ex E xi
+|V
EM , |iiEh i |H <B+< E x + |iiEh BC{V E |E VE
B +M-+M BV E M Vi *

MhiE |E]Eh: EM

P.

E u |iiEi E E BC{V

R.

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


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

S.

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

U.

(S) , E +n =i{z +i E

V.

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


+xYi +l x

Z.

xxx E
l

\.

31.03.2012 E lli

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

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


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

( ` Ec )

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


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

G
.
].
`.

b.

f.

MhiE |E]Eh: ]bM


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

46

Ec )

Table DF-7
SECURITISATION: DISCLOSURE FOR STANDARDISED APPROACH QUALITATIVE
Position as on 31.03.2012
DISCLOSURES
Qualitative Disclosures
(a) The general qualitative disclosure requirement with respect to securitisation,
including a discussion of:
l
the banks objectives in relation to securitisation activity, including the extent to
which these activities transfer credit risk of the underlying securitised exposures
away from the bank to other entities;
l
the nature of other risks (e.g., liquidity risk) inherent in securitized assets
l
the various roles played by the Bank in the securitization process (e.g., originator, investor, servicer, provider of credit enhancement, liquidity provider) and an
indication of the extent of the Banks involvement in each of them
l
a description of the process in place to monitor changes in the credit and market
risk of securitization exposures (e.g., how the behavior of the underlying assets
impacts securitization exposures as defined in para 5.16.1 of the Master Circular on NCAF dated 01.07.2009)
l
a description of the Banks Policy governing the use of credit risk mitigation to
mitigate the risks retained through securitization exposures
(b) Summary of the banks accounting policies for securitisation activities, including:
l
Whether the transactions are treated as sales or financings
l
Methods and key assumptions (including inputs) applied in valuing positions
retained or purchased
l
Changes in methods and key assumptions from the previous period and impact of the changes
l
Policies for recognizing liabilities on the balance sheet for arrangements that
could require the Bank to provide financial support for securitised assets.
(c) In the banking book, the names of ECAIs used for securitisations and the types of
securitisation exposure for which each agency is used.

No securitization during the


year ended 31.03.2012.

Nil.

Not Applicable

Quantitative Disclosures : Banking Book

SL

(Amount ` in Crores)

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

on-balance sheet securitisation exposures retained or purchased broken


down by exposure type and

off-balance sheet securitisation exposures broken down by exposure type

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


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

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

47

Nil.

SL

Quantitative Disclosures : Trading Book


(Amount ` in Crores)

No
(k)

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

48

Nil.

h bB - 8

{ V VJ
MhiE |E]Eh

31.03.2012 E lli

(E) V VJ :
1.

2.

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


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

3.

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


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

4.

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


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

5.

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


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

{hiE |E]Eh

G .
1.

( ` Ec )

V VJ i E {V +EiB

517.35

1.1

V n VJ

1.2

<C] li VJ

2.71

1.3

n x VJ

123.41

391.23

49

Table DF 8
MARKET RISK IN TRADING BOOK
Position as on 31.03.2012

Qualitative Disclosures
(a) Market Risk:
1.

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

2.

Policies for Management of Market Risk:


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

3.

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

4.

Interest Rate Risk is managed through use of Gap analysis of rate sensitive assets and liabilities and monitored
through prudential (tolerance) limits. The Bank estimates Earnings at Risk (EaR) periodically against adverse movements in interest rate (as prescribed in the policy) for assessing the impact on Net Interest Income and Economic
Value of Equity (EVE) with a view to optimize shareholder value.

5.

The Asset Liability Management Committee (ALCO)/Board monitors adherence of prudential limits fixed by the Bank
and determines the strategy in light of market conditions (current and expected) as articulated in the ALM policy. The
Mid Office at the Treasury also monitors adherence of prudential limits on a continuous basis.

Quantitative Disclosures

SL
No
1.

(Amount ` in Crores)
The total capital requirements for Market Risk
1.1

Interest rate risk

1.2

Equity position risk

1.3

Foreign exchange risk

517.35
391.23
2.71
123.41

50

h bB - 9
{SxMi VJ

31.03.2012 E lli

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

G .

{hiE |E]Eh

1.

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


EiE o]Eh E +{x *

2.

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


E + E 15 |ii E * inx lli 31.03.2012 E {SxMi VJ i {V +{I
` 799.17 Ec *

51

Table DF 9
OPERATIONAL RISK
Position as on 31.03.2012

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

Quantitative Disclosures
1.

2.

In line with the final guidelines issued by RBI, the Bank has adopted the Basic Indicator Approach for computing capital for Operational Risk.
As per the guidelines, the capital for operational risk is equal to 15% of average positive annual Gross Income
of previous three years as defined by RBI. Accordingly, the capital requirement for operational risk as on
31.03.2012 is Rs. 799.17 Crores.

52

h bB - 10

EM E V n VJ (+<++)

31.03.2012 E lli

MhiE |E]Eh
(E)

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

{hiE |E]Eh

G .
1.
2.

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

( ` Ec )
VJ { +M
317.12

+lE { i x
15.71%

53

Table DF 10
INTEREST RATE RISK IN THE BANKING BOOK (IRRBB)
Position as on 31.03.2012

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

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

2.

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

3.

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

4. The Asset Liability Management Committee (ALCO) / Board monitors/reviews adherence of prudential limits fixed
by the bank and determine the strategy in light of the market condition (current and future).
(Amount ` in Crores)
SL
No.
1.

2.

Quantitative Disclosures

Change in Interest Rate

Earning at Risk

1.00%

317.12

Change in Interest Rate

Change in Economic Value

2.00%

15.71%

54

E{] Mxx { {]

REPORT ON CORPORATE GOVERNANCE

1. E{] Mxx E nx :

1.

Corporate Governance Philosophy

<n E E E{] xi, E{] Mxx E og rxi


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

Allahabad Banks corporate policy is based on sound


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

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

Upholding the shareholders value within the principles


of ethics and legal framework of the country.

Extending best of services to its customers.

Ensuring a proactive management free from bias,


ensuring fair justice to all sections of the society.

2.

Board of Directors

Proclaiming a free and fair environment for its customers


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

2.1 The constitution of Board of Directors is governed by the


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

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


E u xH ix {hEE xnE * +x xnE
xxJi :
(E) xxJi |iE E BE |ixv :
i)
i E
ii)
EM
iii)
+vE ES
(J) hVE E E xx +l {Ih E E v
+E Yi + +x Jx BE xnE E i
V E E ii { Exp E u xi E Vi *
(M) ix ij vE xnE
(P) i E u xH xn JE xnE

The Chairman & Managing Director and two Executive


Directors are three whole time Directors appointed by
the Government of India. The other Directors include
the following:(a) A representative each of
i)
Government of India (GOI)
ii)
Workmen
iii) Officers Employees
(b) One director possessing necessary expertise and
experience in the matter relating to regulation or
supervision of commercial bank, to be nominated by the
Central Govt. on the recommendation of RBI

(R) ix +EE M-E xnE(ix n {n H )

c)

Three Independent Shareholders Directors

d)

One Chartered Accountant Director appointed by


Government of India

e) Three part-time Non-Official Directors (Two posts presently


lying vacant)

2.2. b E i
b x xxHx z i E M`x E V i{h
EiE Ij B Expi Mxx |nx Ei B
E E E xjh Ei - :
b E |vx i (B+b)
b E J{I i (B)

2.2 Committees of Board


The Board has constituted various committees as mentioned
hereunder which provide specific and focused governance in
the important functional areas and control the affairs of the
Bank: -

55

Management Committee of the Board (MCBOD)


Audit Committee of the Board (ACB)

VJ |vx i (+B)
xnE E {nzi i (b{)
vE/xE E Ei i (BBS+<V)
Sx |tME i (+<] i)
vJvc xMx i (BB)
OE i (B)
+ih i (B])
{v i ({.)
xEx i (x. )
@h +xnx i(B)
xM B +]x i(B+<B)
2.3 b E ni xi E xvh, x< {, Ex{nx
I il xjh B E E z EvE E |iVi
+vE E {cx E Ei * b x
z i E M` x E il z EiE Ij
+vE E |iVx E * b il =E i +vE
+i { ` E Ei *
2.4 31.03.2012 E lli xnE b E M`x xxi :
x

{nx

Name

Designation

Risk Management Committee (RMC)


Directors Promotion Committee (DPC)
Shareholders/ Investors Grievances Committee
(SHIGC)
Information Technology Committee (IT Com.)
Fraud Monitoring Committee (FMC)
Customer Service Committee (CSC)
Share Transfer Committee (STC)
Remuneration Committee (Remu. Com.)
Nomination Committee ( Nom. Com.)
Credit Approval Committee (CAC)
Share Issue and Allotment Committee (SIAC)

2.3 The responsibilities of the Board include formulation of


policies, new initiatives, performance review and control
and sanction of cases falling beyond the powers
delegated to various functionaries of the Bank. The Board
has constituted various committees and delegated
powers for different functional areas. The Board as well
as its committees meet at periodic intervals.
2.4 The composition of the Board of Directors as on 31-032012 was as under:

xH E il

Date of
appointment

1.

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

2.

b. E

Shri D. Sarkar
3.

B.+. xE
Shri M.R. Nayak

4.

B. =nMi

Shri A. Udgata
5.
6.

11.

Directorship/
Membership of
Board/Committees

+vI B |v xnE
Chairman & Managing Director

04-12-2009*

10

Executive Director

07-12-2009

Executive Director

22-01-2010

E{E xnE
E{E xnE

E u xi xnE

Dr. Shashank Saksena

Government Nominee Director

15-11-2011

Chartered Accountant Director

14-07-2010

Part Time Non Official Director

19-07-2011

Officer Employee Director

13-07-2011

+.B. Sin
b.Bx.

x E
M n

xn JE xnE

+EE M-E xnE


+vE ES xnE
EM ES xnE

b. n{ Sv

vE xnE

Workmen Employee Director

16-08-2010

Dr. Sudip Chaudhuri

Shareholders Director

10-02-2012

+E V

Shri Ashok Vij


12.

of other Board
& Committees

13-10-2011

Shri Gour Das


10.

Total No. of

RBI Nominee Director

Shri Nirmal Kumar Bari


9.

Membership

E u xi xnE

Shri D.N. Singh


8.

ctu z o / mrbr;gt fu U
rl=u N fU;t/
m=g;t fUe
fw U t mk gt

b. E Cx
Shri R.M. Chaturvedi

7.

+x b B
i
E ni

vE xnE

B.{..Bx.

vE xnE

Shareholders Director

10-02-2012

Shri A.P.V.N. Sarma

Shareholders Director

10-02-2012

56

* V.{. n+ 07.11.2007 03.12.2009 iE E E E{E


xnE l
x] :
(i) b E E< xnE 10 +vE i E n
x =x i E{x , VxE xnE , 5
J{I i/vE Ei i E +vI
x *
(ii)

* Shri J.P. Dua was the Executive Director of the Bank from
07-11-2007 to 03-12-2009
Note:
(i) None of the directors on the Board is a member in
more than 10 committees or acts as Chairman of more
than 5 Audit Committee/ Shareholders Grievance
Committees across all companies in which he is a
director.

E< xnE BE n E in x *

(ii) None of the Directors are relative of each other

2.5. k 2011-12 E E xnE b u xH xSi


xnE E B E Oh Ex xnE E h
xS n M *
2.5.1 B. =nMi, ..E u xi xnE,
B.=nMi x 1982 i W E, x Ob-
+vE E { E Oh E l* =xx Ij E,
x< n + Exp E, < z {n { E E*
|vE E { {nzi Vx { =x E, +nn
{nl E M + J |vE E { {nzi x {
=xE {nl{x E, x< n < (2004-09)* ix
| J |vE (VB), E M, i
W E, Exp E, < Ei * < { J
|vE, EM {Ih M, Exp E, < Ei
l (Vx 2009 +| 2010)*
=nMi x 13.10.2011 E <n E E b i
W E u xi xnE E { E Oh E* =x
EM B EM {Ih E { Yx + {E +x *
VxiE j xiEk + =xx B+<+< (M1) { E * =xx +|-<, 2008 E S ]b
b C EM v Bb xV] |O M +
+H, 2011 BB ] EM v x M
*
2.5.2 b. E Cx, E u xi xnE
b. E Cx, +<<B 1987 i +lE Vc*
ix k M, k j, x< n xnE
(+-** B {+) E { Ei * =x z j/
M`x E E 19 +vE E +x + =xx
20.08.2007 Vx 2008 iE <bx +W E E b
il 10.06.2008 14.11.2011 iE ] E + <b E
b E u xi xnE E { E E* zt. Cx
rlGuv B @h M] xM (b+<V) il <b]
<x]] E + <b . E u xi xnE E
{n { *
b. Cx +lj xiEk B =xE { E bO
* =xx 15.11.2011 E E b E u xi
xnE E { E Oh E*
2.5.3 x E , +vE ES xnE
x 13.07.2011 E b +vE ES xnE E
{ 3 E +v E B E Oh E*
31 n, 1985 E E + ix
` |vE E { xv M, |vx E {nl
*
57

2.5 The profile of the directors who were appointed/elected


on the Board of the Bank and assumed office during the
financial year 2011-12 is furnished hereunder:
2.5.1 Shri A. Udgata, R.B.I. Nominee Director
Shri A. Udgata joined Reserve Bank of India in the year 1982
at Bhubaneshwar as a Grade-B Officer.
He worked in
various capacities at Regional Offices at Kolkata, New Delhi
and Central Office, Mumbai. On his promotion as General
Manager, he was posted at RBI, Ahmedabad and on
subsequent promotion as Chief General Manager he was
moved to RBI, New Delhi (2004-09). At present, he is working
as Chief General Manager (CGM) In-Charge, Urban Banks
Department, RBI, Central Office, Mumbai. Prior to this, he
worked as CGM, Department of Banking Supervision (DBS)
at Central Office Mumbai (June 09 April 10).
Shri Udgata joined Allahabad Bank Board as RBI Nominee
Director on 13.10.2011 and with him brings-in rich knowledge
& experience in Banking and Banking Supervision. He has
Post Graduate in Political Science and has passed CAIIB
(Part-I). He has attended Advance Management Programme
on March Towards World Class Banking in UK in April-May
2008, and a Seminar on Central Banking in USA in October
2011
2.5.2 Dr. Shashank Saksena, Govt. Nominee Director
Dr. Shashank Saksena, IES, joined the Indian Economic
Service in 1987. Presently he is working as the Director (BOII and PR), Department of Financial Services, Ministry of
Finance, New Delhi. He has over 19 years of experience in
various Ministries/Organizations and served as Govt. Nominee
Director on the Boards of Indian Overseas Bank from
20.08.2007 to June 2008 and Central Bank of India from
10.06.2008 to 14.11.2011. Dr. Saksena is also on the Boards
of the Deposit Insurance and Credit Guarantee Corporation
(DICGC) and the Industrial Investment Bank of India Ltd., as
Govt. of India nominee Director.
Dr. Saksena is a Post Graduate in Economics with a degree
in Law. He has joined the Banks Board as Government
Nominee Director w.e.f. 15.11.2011.
2.5.3 Shri Nirmal Kumar Bari, Officer Employee Director
Shri Bari has joined the Board as Officer Employee Director
w.e.f. 13.07.2011 for a period of three years.
Shri Bari is in service of the Bank since 31st December, 1985
and presently posted as Senior Manager at P. F. Department,
Head Office, Kolkata.

x E + <b E + BBx
(B+<B+B) E +vI + BBx E {S M x]
E ]] G] * =xE { EM + ]b xx Miv
E {E +x *

Shri Nirmal Kumar Bari is the President of All India Allahabad


Bank Officers Association (AIABOA) and also the State
Secretary of West Bengal Unit of the Association and has rich
experience in the fields of banking and the trade union
movement.

BE +SU H + + <b E + Exbx


(B+<+) E +iMi E +vE n E ]b xx b
+ B+<+ E b{] Vx G] E {n { * +
<b xx<Vb E + bx (B+<Bx+B), {S
M E ]] G] * EV B t
Uj xx E xi il ] B ytJ]rt =xE +hS
*
2.5.4 n xh , +EE M-E xnE

Shri Bari is a good orator and Trade Union Leader of Bank


Officers Community under the banner of All India Bank
Officers Confederation (AIBOC), holding the post of Dy.
General Secretary of AIBOC. He is also the State Secretary
of All India Nationalised Bank Officers Federation (AINBOF)
of West Bengal. Shri Bari has been student Union Leader in
College & University and his hobbies are Football and
Recitation.

x 19.07.2011 E ix E +v E B +EE
M-E xnE E { b E Oh E*
x xn EV, n t V Yx
+x E l +{x xiE {`G { E* =xE {`
E vi + =x E B i{x E Ij |ME
Yx B {E +x *
nMx Eh i E +vI V BE {VEi M
E M`x + Oh Ij I |nx Ex B Bb,
l +n E v VMEi {n Ex E B E E
*
b.Bx. <] EV, i, V EzV (.{.) E |vx
i E n + b.Bx. bO EV, iMg (.{.) E
|vx i EE n * < { x 1978
1986 iE V.E. l]E, Ex{ E E l*

Shri Singh has joined the Bank as Part Time Non-Official


Director w.e.f. 19.07.2011 for a period of three years.

E E, Oh +ll + I E Ij {{i
+x *
2.5.5 b. n{ Sv, vE xnE

Shri Singh brings ample experience in Agriculture, rural


economy and education.

b. n{ Sv x 1976 EEk t +lNtt


] bO SS E (] C ]) E l { E +
1985 V x t +lNtt {BS.b.
E* b. Sv i |vx lx, EEi 1990 |
(<ExC O{) E { Ei *
] B +i] {jE+ =xE +xE J |Ei B
* <x xxi J + Bb b b{] + x bM
xMC]b bWV V <]xx Vx + ]CxV
Bb M<Vx |Ei x *
b. Sv x i W E, i +titME E E, i
E, hV B =tM j, H ] E EG
(Bxb{), xE, l M`x (bBS+), Vx E B
{ni E { E E* =xx +xE +i] x
+ji H E { M Vx EU |J EG <
|E : (*) V <b, V, =l +E BEbE
: B { bM (**) Vx +<]Bb/ Bx]Bb
=b ] (***) bxE ++<B E{, n M
x]E n <ExC + xM, <xx Bb E{] bM
] + (4) E x] xE Ex +x x
B|SV ] <x]CS+ |{]*
b. Sv E E vE xnE E { n Sx MB +
=xx 10.02.2012 b E Oh E*

Dr. Sudip Chaudhuri completed his M.A. in Economics from


Calcutta University in 1976 with highest rank (first class first)
and Ph.D. in Economics from Jawaharlal Nehru University,
New Delhi in 1985. Dr. Chaudhuri has been serving Indian
Institute of Management, Calcutta as Professor (Economics
Group) since 1990.

2.5.4 Shri Deveshwar Narain Singh, Part Time Non-official


Director

Shri Singh had completed his Graduation with honors in


Sociology from Hindu College, Delhi University. He comes
from an agrarian background and has relevant knowledge
and a vast experience in the field of agriculture & fisheries.
Shri Singh is the President of DEVANGNA KALYAN SAMITI
a registered non-Government Organization working in rural
areas to impart education and awareness of Aids, Hygiene
etc.
Shri Singh is a member in the Managing Committee of D. N.
Inter College, Tirwa, Distt. Kannauj (UP) and also a working
member in the Managing Committee of D. N. Degree College,
Fatehgarh (UP). Earlier, Shri Singh worked for
M/s J. K.
Synthetics, Kanpur from 1978 to 1986.

2.5.5 Dr. Sudip Chaudhuri, Shareholders Director

He has many publications in National & International journals.


The latest one is on R & D for development of new drugs for
neglected diseases which is forthcoming in International
Journal of Technology and Globalization.
Dr. Chaudhuri served as a consultant for Reserve Bank of
India, Industrial Development Bank of India, Government of
India, Ministry of Commerce & Industry, United Nations
Development Programme (UNDP), New York, World Health
Organization (WHO), Geneva. He attended many international
conferences as an invited speaker, prominent of which are (i)
India Brazil South Africa Academic Forum: A Policy Dialogue
at Brazil; (ii) ICTSD/UNCTAD Roundtable at Geneva; (iii)
BRICS Workshop, the global network for the Economics of
learning, Innovation & competence building system, at
Denmark; and Conference on new approaches to intellectual
property, at Columbia University, New York.
Dr. Chaudhuri was re-elected as shareholders Director of the
Bank and joined the Board with effect from 10-02-2012.

58

2.5.6 +E V, vE xnE
+E V, hVE xiE + i xn JE
lx +i|{i xn JE * xn JE E
|C] Ei * V Bb E{x, xn JE,
x< n B E ` {]x * =xE { 32 E
E +x Vx c i/] xx B E
E{x k B |vx {, J{I, Evx B
E B |nx Ex *

2.5.6 Shri Ashok Vij, Shareholders Director

V, +Bx] E + E B <b +W E E
xnE b G: i, 1989 S, 1995 B +|,
1995 S, 2000 iE E u xi xnE l*
{xmSx i, nS M, i E E n l +
1994-95 E n x BBxB E +i ] H =t E E]]
l* ix , n =c x b{] E{x . (i
E E ={G) B |{ {Bx B] xV] E. |. .,
E b ij xnE * z E ={G E E]]
, V - <x]CS b{] b, BS{ ]] <C]] b
+ {]x B xME =bbx M, S |n E*
<b | x Bb <x]] . il bbE ]b
bV] x |. . E b vE xnE *

Shri Vij was Government Nominee Director on the Boards of


Oriental Bank of Commerce & Indian Overseas Bank from
Sep.1989 to Mar.1995 & Apr.1995 to Mar.2000, respectively.
He was Member in the Committee on Restructuring,
Department of Telecom, Govt. of India and consultant for
international Joint Venture of VSNL during 1994-95. Presently,
He is on the Board of The Orissa Minerals Development
Company Ltd. (GOI undertaking) and Principal Pnb Asset
Management Co. Pvt. Ltd., as independent Director. He is
consultant to various Government undertakings such as
Infrastructure Development Board, HP State Electricity Board
and the Department of Tourism & Civil Aviation, Govt. of
Himanchal Pradesh. He is also on the Boards of M/s India
Professional Services & Investment Ltd. & M/s Dedicated
Digital Machines Pvt. Ltd., as a Shareholder Director.

V x 10.02.2012 E E b vE xnE E {
E Oh E*
2.5.7 B.{..Bx. , vE xnE
B.{..Bx. BE ` +<BB (xk) +vE *
=xx xiE i { .<. B BB {`G { E*
=xE E |x B =tM 36 E +x * E
+<BB E { VxE q E v xi xh E
Exx iE E {E +x * =xE { +v-xE
E 10 +vE E +x *
E =tM, k, +ll B v E |S Yx * 5 Mo
E {h EE E B Mx EV E. . E |J l
; E{x Mh l* <xE EE E n x E{x E E {]
< + E{x E x M*

Shri Vij has joined the Banks Board as Shareholders Director


w.e.f. 10.02.2012.

Shri Ashok Vij is a Commerce Graduate and qualified


Chartered Accountant from Institute of Chartered Accountants
of India. He is a practicing Chartered Accountant. He is the
senior partner of M/s Lamba Vij & Co., Chartered Accountants,
New Delhi & Shimla having thirty two years of professional
experience extending services to large Indian / multinational
and Government companies in the areas of Financial &
Management consultancy, Audit, Taxation and Business
Advisory Services.

2.5.7 Shri A.P.V.N. Sarma, Shareholders Director


Shri A. P. V. N. Sarma, is a senior IAS (Retd.) officer. He has
completed B.E. and LLB at graduation level. He has 36 years
of experience in Public Administration and Industries. Shri
Sarma as an IAS is widely exposed to public issues from
policy making to implementation. He has also over 10 years
experience of quasi judicial service.
Shri Sarma has ample knowledge of Industry, Finance,
Economics & Law. He also headed M/s Singareni Collieries
Company Ltd. for full term of 5 years, a sick company then.
During his tenure the company has made a turnaround into
profits.
Shri Sarma set-up Indian Maritime University in Chennai.

x Sz< <bx ]< x] E l{x E *


ix ] <{i xM . B x
Mx<] E{x . +EE M E xnE E {
Ei *
x 10.02.2012 E E b vE xnE E {
E Oh E*

At present, Shri Sarma is on the Boards of M/s Rashtriya


Ispat Nigam Limited & M/s Neyveli Lignite Corporation Ltd.,
as Part-Time Non-Official Director.
Shri Sarma has joined the Banks Board as Shareholders
Director w.e.f. 10.02.2012.

59

3. 2011-12 E nx +Vi b
h

i E ` E E

3. Details of the Board/Committee meeting held during


financial year 2011-12

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


G0
0

xnE
E x

S.N.

Name
of Director

1
2
3
4
5
6

7
8
9
10
11

3.1 Details of the meetings attended by Present and Past


Directors.

+
B

b B BS
{ +< V

+<
]
i

B
B

{v
B i

BOARD

MCB

ACB

RMC

DPC

SHIGC

ITCOM.

FMC

CSC

Remu.
Com.

x.
i

B
]

B
B +<B

Nom.
Com

STC

CAC

SIAC

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

16

20

19

Shri D. Sarkar

16

20

11

2#

20

Shri M.R. Nayak

16

20

11

21

Smt Sukriti Likhi*

Dr. Shashank Saksena

Dr. Shakeel-UzZaman Ansari*

Shri P.V. Gudireddy*

Shri Deveshwar Narain Singh

11

Shri S. Ramaswamy*

Shri A. Udgata

10

Shri R.M. Chaturvedi

14

19

10

11

18

b. E
B.+. xE
i Ei J
b. E Cx
b. E =V Wx +
{. . Mbb *
. n xh
. B.
. B. =nMi

. +. B. Sin

n E E{*
Shri Deveshwer Kumar Kapila* 3
13 b. xi EVM*
Dr. Vasant Baburao Kaujalgi* 4
14 b. n{ Sv**
Dr. Sudip Chaudhuri**
4
15 . +E V
Shri Ashok Vij
2
16 . B.{..Bx.
Shri A.P.V.N. Sarma
2
17 . x E
Shri Nirmal Kumar Bari
12
18 . M n
Shri Gour Das
15
12

*{U xnE / * Past directors


**b. n{ Sv nxE 29.06.2011 iE E E vE xnE
B 10.02.2012 i vE xnE {x& xSi EB MB*
#

** Dr. Sudip Chaudhuri was shareholders Director of the Bank


upto 29-06-2011 and has been re-elected as shareholders
Director with effect from 10-02-2012.

-E{E

# Co-opted

60

3.2 ]Ei E (|vx B |Eh |vx) Vx 1970 E Jb 12


E +iMi xvi xxi 6 ` E E {I Ivx +v E
n x xxH il E 16 b `E +Vi E M< l*

3.2 During the period under review 16 Board Meetings were


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

`E E il

b xnE E J

={li xnE E J

Date of meeting

No. of Directors on Board

No. of Directors attended

18-04-2011
02-05-2011
31-05-2011
28-06-2011
21-07-2011
22-07-2011
22-08-2011
16-09-2011
19-10-2011
02-11-2011
26-11-2011
15-12-2011
16-01-2012
30-01-2012
22-02-2012
10-03-2012

12
11
10
10
9
9
9
9
9
9
9
9
9
9
12
12

9
10
8
9
8
8
8
8
7
8
9
9
8
8
11
11

4. b E i

4.

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

4.1 Management Committee of the Board


In pursuance of clause 13 of Nationalized Bank (Management
& Miscellaneous Provisions) Scheme, 1970 read with the
directives of the Ministry of Finance, Government of India, a
Management Committee of the Board has been constituted.

4.1.1 |vx i E M`x


lli 31.03.2012 E b E |vx i xxH
n l :1.
2.
3.
4.
5.
6.
7.
8.

Committees of the Board

4.1.1 Composition of the Management Committee


The members of the Management Committee of the Board
as on 31-03-2012 were as under:

V.{. n+

+vI B |v xnE

Shri J.P. Dua

Chairman & Managing Director

b. E

E{E xnE

Shri D. Sarkar

Executive Director

B.+ xE

E{E xnE

Shri M.R. Nayak

Executive Director

B. =nMi

E u xi xnE

Shri A.Udgata

RBI Nominee Director

V B. Sin

xn JE xnE

Shri Rajesh M. Chaturvedi

Chartered Accountant Director

M n

EM xnE

Shri Gour Das

Workmen Employee Director

b. n{ Sv

vE xnE

Dr. Sudip Chaudhuri

Shareholders Director

B.{..Bx.

vE xnE

Shri A.P.V.N. Sarma

Shareholders Director

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


Vi *

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


Managing Director.

61

4.1.2 |vx i E E

4.1.2 Function of the Management Committee

|vx i E E =SS E |i E Ei, Zi/


]] Ji bx, {VMi il V E Ei V
i{h E { S Ex il +vI B |v
xnE B E{E xnE E |iVi +vE E ={M
E I Ex * i x M, +x{V +i V
i{h Ij Ex{nx il b u i E ni +x
i{h |vx xh E I Ei *

The function of the Management Committee is to consider


various business matters of material significance like
sanction of high value proposal, compromise/write off,
sanction of capital & revenue expenditure and review the
exercise of delegated authority by the Chairman & Managing
Director and the Executive Director(s). The Committee also
reviews the performance of key areas like investment portfolio,
non-performing assets and other important management
decisions referred to the Committee by the Board.

4.1.3 i E `E E h
01.04.2011 31.03.2012 E nx xxJi il E
|vx i x 20 `E +Vi E:

4.1.3

Details of the meeting of the Committee

The Committee met 20 times during the period 01.04.2011 to


31.03.2012 as detailed below:-

`E E il

b E |vx i xnE E .

={li xnE E .

Date of meeting

No. of Directors on the Management


Committee of Board

No. of Directors attended

18-04-2011

19-05-2011

10-06-2011

28-06-2011

21-07-2011

12-08-2011

22-08-2011

16-09-2011

29-09-2011

19-10-2011

02-11-2011

25-11-2011

15-12-2011

23-12-2011

16-01-2012

30-01-2012

14-02-2012

22-02-2012

10-03-2012

24-03-2012

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

4.2

4.2.1 i W E E nxn il E{] Mxx E


ri E +x E x 31.05.1994 E BE J{I i E
M` x E il = - { {xM` i E*

Audit Committee of the Board (ACB) :

4.2.1 In pursuance to the directives of Reserve Bank of India


and having regard to the fundamentals of Corporate
Governance, the Bank originally constituted an Audit
Committee on 31.05.1994 and reconstituted the same from
time to time.

62

4.2.2 J{I i E M`x :

4.2.2 Composition of the Audit Committee :

lli 31.03.2012 E b E J{I i xxH


n l:-

The member of the Audit Committee of the Board, as on


31-03-2012 were as under:

1. b. E
2. B.+. xE

E{E xnE
E{E xnE

3. b. NNtkfU Cx
4. B. =nMi
5. V B. Sin
6. n xh

E u xi xnE
E u xi xnE
xn JE xnE
+EE M-E xnE

1. Shri D. Sarkar

Executive Director

2. Shri M.R. Nayak

Executive Director

3. Dr. Shashank Saksena

Government Nominee Director

4. Shri A.Udgata

RBI Nominee Director

5. Shri Rajesh M. Chaturvedi

Chartered Accountant Director

Shri Deveshwar Narain Singh Part Time Non-Official Director

i E +vIi V B. Sin, xn JE xnE,


u E M<*

The committee is chaired by Shri Rajesh M. Chaturvedi,


Chartered Accountant Director.

4.2.3 J{I i E E :

4.2.3

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

Function of the Audit Committee:

The main function of Audit Committee is to assess and review


the financial reporting system of the Bank to ensure that the
financial statements are correct, sufficient and credible. It
reviews with the management the annual financial
statements before their submission to the Board.

J{I i xn ni il E E +iMi M`x,


{Sx il +iE J{I + xIh E Mhk xjh
i E E i J{I E E {Sx E {Ih Ei
il E E vE/ J{I B E E xIh {
+xi E< Ei *

The Audit Committee provides direction and oversees the


operations of total audit function of the Bank including the
organization, operation and quality control of internal audit
and inspection within the Bank and follow up on the Statutory/
External audit of the Bank and RBI inspections.

i +iE xjh |h E {{ii, +iE J{I


M E Sx, <E ]M {]x E I Ei il
E i{h xE { +iE J{IE/xIE E l
S- + =x { +xi E< Ei * <E +iH
E E k B VJ |vx xi E I Ei *

The Committee also reviews the adequacy of internal control


system, structure of internal audit department, its staffing
pattern and discussion with the internal auditors/Inspectors
on any significant finding and follow-up action thereon. It
further reviews the financial and risk management policies
of the Bank.

vE J{I E , J{I i E/i


k J+ + {] E +i { nx { Exp vE
J{IE E l S- Ei * M J{I
{] (BBB+) {] =`B MB z q { +xi
E< Ei *

Regarding Statutory Audit, the Audit Committee interacts with


the Central Statutory Auditors before finalization of Annual/
Quarterly Financial Accounts and Reports. It also follows up
on various issues raised in the Long Form Audit Report (LFAR).

63

4.2.4 ` E E h -

4.2.4

01.04.2011 31.03.2012 E nx xxJi il E b


E J{I i E 11 ` E +Vi E M<:

During the period 01.04.2011 to 31.03.2012, 11 meetings of


the Audit committee of the Board were held as detailed below:-

`E E il

Details of Meetings:

b E J{I i xnE E .

={li xnE E .

No. of Directors on the


Audit Committee of Board

No. of Directors
attended

07-04-2011

02-05-2011

24-06-2011

21-07-2011

22-07-2011

29-09-2011

02-11-2011

16-12-2011

30-01-2012

15-02-2012

04-03-2011

Date of meeting

4.3 VJ |vx i :

4. 3 Risk Management Committee

4.3.1 b E VJ |vx i :

4.3.1 Risk Management Committee of the Board:

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

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


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

4.3.2 b E VJ |vx i E M`x :

4.3.2 Composition of the Risk Management Committee:

lli 31.03.2012 E i xxH n l :-

The members of the Committee as on 31.03.2012 were as


under:-

1. V.{. n+
2. b. E
3. B.+. xE
4. V B. Sin
5. M n
6. b. n{ Sv
7. B.{..Bx

+vI B |v xnE
E{E xnE
E{E xnE
xn JE xnE
EM xnE
vE xnE
vE xnE

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


Vi *
4.3.3 b E VJ |vx i E E :
VJ |vx i @h, V + {Sx VJ i E E
z VJ x E B BEEi VJ |vx i xi il
hxi x{i Ei *

1.

Shri J.P. Dua

Chairman & Managing Director

2.

Shri D. Sarkar

Executive Director

3.

Shri M.R. Nayak

Executive Director

4.

Shri Rajesh M. Chaturvedi Chartered Accountant Director

5.

Shri Gour Das

Workmen Employee Director

6.

Dr. Sudip Chaudhuri

Shareholders Director

7.

Shri A.P.V.N. Sarma

Shareholders Director

The Committee is chaired by Shri J.P. Dua, Chairman & Managing Director.
4.3.3 Function of Risk Management Committee of the Board
The Risk Management Committee devises the policy and
strategy for integrated risk management containing various
risk exposures of the Bank including Credit, Market & Operational risk.

64

4.3.4 ` E E h 01.04.2011 31.03.2012 E nx VJ |vx i E


4 ` E +Vi < rslfUt rJJhK rlltkrfU; nuui-

4.3.4

Details of the Meetings

The Committee met 4 times during the period 01-04-2011 to


31-03-2012 as detailed below:

`E E il

b E VJ |vx i xnE E .

={li xnE E .

Date of Meeting

No. of Directors on the


Risk Management Committee of Board.

No. of Directors
attended

31-05-2011

22-08-2011

25-11-2011

22-02-2012

4.4 xnE {nz i i (b{) :

4.4. Directors Promotion Committee (DPC)

4.4.1 b E xnE {nz i i:

4.4.1 Directors promotion committee of the Board:

E x i E, k j (EM |M)E xn E +xh


xnE {nzi i E M` x E + < - {
{xM` i E M *

The Bank in pursuance to the directives of Govt. of India,


Ministry of Finance (Banking Division) constituted Directors
Promotion Committee and the same was reconstituted from
time to time.

4.4.2 xnE E {nz i i E M`x :

4.4.2 Composition of the Directors Promotion Committee:

lli 31.03.2012 E xnE E {nzi i xxH


n l :1. V.{. n+
: +vI B |v xnE
2.b. E Cx
: E u xi xnE
3. B. =nMi
: E u xi xnE

The members of the Committee of Directors as on 31-032012 were as under:-

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


Vi *
4.4.3 xnE E {nz i i E E :
xnE E {nzi i E M`x iEi B M-iEi
+xxE E x{]x E I Ex B E{] Mxx
B VJ |vx |h E v i V E B i
E E nxn E +x +ii{h +x E
I Ex E B E M *

1. Shri J.P. Dua,

Chairman & Managing Director

2. Dr. Shashank Saksena

Government Nominee Director

3. Shri A. Udgata

RBI Nominee Director

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


Managing Director
4.4.3 Function of the Directors Promotion Committee:
The Directors Promotion Committee has been constituted
to review disposal of vigilance and non-vigilance disciplinary
cases and other cases of strategic importance in terms of
Reserve Bank of India (RBI) and Government of India (GOI)
guidelines on Corporate Governance and Risk Management
System.

4.4.4 Details of the Meetings


4.4.4 `E E h01.04.2011 31.03.2012 E nx xxH il E i The Committee held 4 meetings during the period 01.04.2011
to 31.03.2012 as detailed below:
x 4 ` E +Vi E :
`E E il
xnE E {nz i i xnE E .
={li xnE E .
Date of Meeting
28-06-2011
16-09-2011
15-12-2011
10-03-2012

No. of Directors on the Directors


Promotion Committee

No. of Directors
attended

3
3
3
3

3
3
3
3

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

4.5. Shareholders/Investors Grievances Committee


4.5.1 The Bank originally constituted the Shareholders/
Investors Grievances Committee on March 4th, 2003 with a
purpose of monitoring the redressal of shareholders and
investors grievances / complaints. The committee was
reconstituted time to time.

65

4.5.2 vE/xE E Ei i E M`x :

4.5.2
Composition of the Shareholder's / Investors'
Grievances Committee

31.03.2012 E lli i E xxH n l :


1. b. E
2. B. +. xE
3. b. n{ Sv
4. +E V
5. B.{..Bx.

The members of the Committee as on 31-03-2012 were as


under:

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

B. . ^S, |vE, (k B J) + B+ E E
E +x{x +vE E { xq] E M *

1.

Shri D. Sarkar

Executive Director

2.

Shri M.R. Nayak

Executive Director

3.

Dr. Sudip Chaudhuri

Shareholders Director

4.

Shri Ashok Vij

Shareholders Director

5.

Shri A.P.V.N. Sarma

Shareholders Director

Shri A.B. Bhattacharjee, General Manager (Finance &


Accounts) & CFO has been designated as Compliance Officer
of the Bank.

4.5.3 vE/xE E Ei i E E

4.5.3 Function of Shareholders/Investors Grievances


Committee:

i xSi Ei E |h{j lxxih,


bVx Ex, xEh +n i +nx E il BE
x E +v E +n V VB* <E +iH, i
xE E Ei E r xh E x]M Ei
* E E Ivx E nx 1183 Ei |{i < Vx
E xh xE E i] E +x{ E V SE *

The Committee ensures that all Share Certificates are issued


within a period of one month of the date of lodgment for
transfer, sub-division, consolidation, renewal etc. The
Committee further monitors the redressal of investors
complaints in a time bound manner. The Bank received 1183
number of complaints during the year under review and all
the complaints have been resolved to the satisfaction of
investors.

4.5.4 ` E E h

4.5.4 Details of the Meetings

01.04.2011 31.03.2012 E nx i x 2 ` E +Vi


E VxE h xxx *

The Committee held two meetings during the period

`E E il

vE/xE E Ei i.
xnE E

={li xnE E .

Date of Meeting

No. of Directors on the Shareholders/


Investors Grievances Committee
3
5

No. of Directors
attended
3
5

19-05-2011
22-02-2012

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


4.6.1 E E z Sx |tME {Vx+ E Exx
E xMx i E x 24 +| 2003 E +<] ={-i M` i
E V - { {xM` i E M*

4.6 Information Technology Committee (IT Committee)


4.6.1 The Bank constituted the IT Committee on April 24th,
2003 and it was further reconstituted time to time to monitor
the implementation of various Information Technology projects
of the Bank.

4.6.2 b E +<] i E M`x :


lli 31.03.2012 E i xxH n l :-

4.6.2 Composition of the IT Committee:


The members of the Committee as on 31-03-2012 were as
under:

1. V.{. n+
+vI B |v xnE
2. b. E
E{E xnE
3. B. +. xE
E{E xnE
4. b. E Cx
E u xi xnE
5. V B. Sin
xn JE xnE
6. M n
EM xnE
7. +E V
vE xnE
i E +vIi V.{. n+, +vI B |v xnE u E
Vi *

1. Shri J.P. Dua

Chairman & Managing Director

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Dr. Shashank Saksena

Government Nominee Director

5. Shri Rajesh M. Chaturvedi

Chartered Accountant Director

6. Shri Gour Das

Workmen Employee Director

7. Shri Ashok Vij

Shareholders Director

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


Managing Director.

66

4.6.3 b E +<] i E E
i E M` x E E z +<] {Vx+ E Exx E
xMx i E M *
4.6.4 ` E E h
01.04.2011 31.03.2012 E n x i E 5 `E xxJi
il E +Vi < :
`E E il

4.6.3 Function of the IT Committee:


This Committee was constituted to monitor the
implementation of various IT projects of the Bank.
4.6.4 Details of the Meetings
This Committee held 5 meetings during the period 01.04.2011
to 31.03.2012 as detailed below :

b E +<] i xnE E .

={li xnE E .

No. of Directors on the IT


Committee of Board

No. of Directors
attended

31-05-2011

12-08-2011

15-12-2011

16-01-2012

24-03-2012

Date of meeting

4.7 vJvc xMx i


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

4.7. Fraud Monitoring Committee


4.7.1 Fraud Monitoring Committee of the Board:
The Bank has constituted Fraud Monitoring Committee on
28.02.2004 and reconstituted from time to time with a purpose
to monitor and follow up cases of frauds involving amount of
Rupees one crore and above.
4.7.2 Composition of the Fraud Monitoring Committee of
the Board:

lli 31.03.2012 E i xxH n l :1. V.{. n+


+vI B |v xnE
2. b. E
E{E xnE
3. B.+ xE
E{E xnE
4. V B. Sin
xn JE xnE
5. x E
+vE ES xnE
i E +vIi V.{. n+, +vI B |v xnE u E
Vi *
4.7.3 vJvc xMx i E E
vJvc E z {+ +li vJvc E {i Mx, xE
+ |ix BV E {] Ex, il vJvc E +V nx
E r E< Ex x E nJi B +xx
{ BE Ec {B + +vE E E vJvc E
E x]M + =x { +xi E< Ex i i E
M` x E M*
4.7.4 `E E h
01.04.2011 31.03.2012 E nx vJvc xMx i
E 6 ` E xxx +Vi E M< :
`E E il
Date of Meeting
28-06-2011
16-09-2011
26-11-2011
14-02-2012
22-02-2012
10-03-2012

The members of the Committee as on 31-03-2012 were as


under:
1.
2.
3.
4.
5.

Shri J.P. Dua


Shri D. Sarkar
Shri M.R. Nayak
Shri Rajesh M. Chaturvedi
Shri Nirmal Kumar Bari

Chairman & Managing Director


Executive Director
Executive Director
Chartered Accountant Director
Officer employee Director

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


Managing Director.
4.7.3 Function of the Fraud Monitoring Committee
The Fraud Monitoring Committee has been constituted
exclusively for monitoring, review and follow up cases of frauds
involving amount of Rs. One Crore and above, keeping in
view the delay caused in various aspects of fraud like
detecting, reporting to regulatory and enforcement agencies
and action against perpetrators of the fraud.
4.7.4 Details of the Meeting
The Fraud Monitoring Committee held 6 meetings during the
period 01.04.2011 to 31.03.2012 as detailed below:-

vJvc xMx i
xnE E .

={li xnE E .

No. of Directors on Fraud Monitering Committee

attended

4
5
5
5
5
5

3
5
5
5
4
5

67

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

4.8 Customer Service Committee


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

4.8.2 OE i E M`x
31.03.2012 E OE i xxJi xnE l*
1. V.{. n+
2. b. E
3. B.+ xE
4. x E
5. M n
6. n xh
7. +E V

4.8.2 Composition of Customer Service Committee:


The Customer Service Committee comprises the following
Directors as on 31-03-2012.

+vI B |v xnE
E{E xnE
E{E xnE
+vE ES xnE
EM xnE xnE
+EE M-E
vE xnE

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


Vi *
4.8.3 OE i E E:
|E E OE E OE i] i v Ex
+ OE E Mhk E gx i xx ={ Ex*
4.8.4 ` E E h
01.04.2011 31.03.2012 E n x i E 4 `E xxJi
il E +Vi E M< rslfUt rJJhK rlltkrfU; nuui`E E il
Date of Meeting
19-05-2011
16-09-2011
25-11-2011
10-03-2012

1. Shri J.P. Dua

Chairman & Managing Director

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Shri Nirmal Kumar Bari

Officer employee Director

5. Shri Gour Das

Workmen Employee Director

6. Shri Deveshwar Narain Singh

Part Time Non-official Director

7. Shri Ashok Vij

Shareholders Director

The Committee is chaired by Shri J.P. Dua, Chairman & Managing Director.
4.8.3 Function of the Customer Service Committee
To innovate measures for enhancing the quality of customer
service and improve the level of customer satisfaction to all
categories of clientele at all times.
4.8.4 Details of the Meetings
The Committee held 4 meetings during the period
01.04.2011 to 31.03.2012 as detailed below:

OE i
xnE E .

={li xnE E .

No. of Directors on the Customer


Service Committee

No. of Directors
attended

5
6
6
7

5
6
6
6

4.9 {v i
i E, k j, +lE E M, EM |M E
nxE 9 S 2007 E +vSx B. . 20/1/2005-++<
E +x VxE Ij E E E {hEE xnE x{nx
r |ix E {j M i E I + MhiE {]
v + h + {U E nx z +x{x {]
vi SE { +vi Ex{nx Ex ]C i
i jiE {] E b u |{i E M *
Ex{nx E Ex b E ={ i- {v i
u E VBM V E u xi xnE, E u
xi xnE il n +x xnE M*
4.9.1 xnE b x 23.03.2007 E +{x ` E Ex{nx
Vc |ix E |Vx i {hEE xnE E Ex{nx
E Ex Ex E =q {v i E M`x E*
i E - { {xM` x E M *

4.9 Remuneration Committee


In terms of Govt. of India, Ministry of Finance, Department of
Economic Affairs (Banking Division) notification F.No. 20/1/
2005-BOI dated 9th March, 2007, whole time directors of the
Public Sector Banks will be entitled to Performance linked
incentives, subject to achievement of broad quantitative
parameters fixed for performance evaluation matrix, based
on the Statement Of Intent on goals and qualitative parameters
and bench marks based on various compliance reports during
the last year. Sub Committee of the Board called
Remuneration Committee consisting of Govt. Nominee
Director, RBI Nominee Director and two other Directors would
do the evaluation of performance.
4.9.1 The Board of Directors in its meeting dated 23-03-2007
constituted the Remuneration Committee to evaluate the
performance of the whole time directors for the purpose of
performance linked incentives. The Committee has since been
reconstituted from time to time.

68

4.9.2. {v i E M`x
lli 31.03.2012 E i E M`x xxx l :

4.9.2 Composition of Remuneration Committee

1. b. E Cx
2. B. =nMi
3. V B. Sin

1. Dr. Shashank Saksena

Govt. Nominee Director

2. Shri A.Udgata

RBI Nominee Director

3. Shri Rajesh M. Chaturvedi

Chartered Accountant Director

The Composition of the Committee as on 31-03-2012 is as


under:

E u xi xnE
E u xi xnE
xn JE xnE

4.9.3. {v i E E
Ex{nx kr |ix E |Vxl vqKofUtrtfU rl=uNfUt fuU
fUtgorlvt=l E bqgtkfUl fUhlt>
4.9.4 `E E h
01.04.2011 mu 31.03.2012 ;fU mrbr; fUe 2 ciXfU nwRko`E E il

4.9.3 Function of Remuneration Committee


To evaluate the performance of the whole time directors for
the purpose of performance linked incentives.
4.9.4 Details of the Meetings
The Committee held two meetings during the period
01.04.2011 to 31.03.2012

b E {v i xnE E .

={li xnE E .

No. of Directors on the Remuneration


Committee of Board

No. of Directors
attended

10-06-2011

24-06-2011

Date of Meeting

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

4.10 Nomination Committee


4.10.1 In terms of Reserve Bank of India letter DBOD No. BC.
No. 47/29.39.001/2007-08 dated Nov. 1, 2007, the Bank
constituted Nomination Committee of the Board on 21-042008. The Committee was reconstituted from time to time.

4.10.2 xEx i E M`x


31.03.2012 E lli i E M` x xxx l:
1. b. E Cx
2. V B. Sin
3. n xh

4.10.2 Composition of Nomination Committee


The Composition of the Committee as on 31-03-2012 is as
under:

E u xi xnE
xn JE xnE
+EE M-E xnE

1. Dr. Shashank Saksena

Govt. Nominee Director

2. Shri Rajesh M. Chaturvedi

Chartered Accountant Director

3. Shri Deveshwar Narain Singh Part Time Non Official Director

4.10.3 xEx i E E
xEx i E +vx E v 9(3)(i) E +iMi Vn xSi
xnE/xnE E { xSi x H E M B
=Si i E Si iEi E l xvh Ex E |G {
Ex i *

4.10.3 Function of Nomination Committee


The Nomination Committee have to undertake a process of
due diligence to determine the Fit & Proper status of existing
elected directors/the person to be elected as a director under
Sec. 9 (3) (i) of the Act.

4.10.4 ` E E h

4.10.4 Details of the Meeting

01.04.2011 31.03.2012 E n x i E BE `E +Vi


E M<*

The Committee held one meeting during the period


01.04.2011 to 31.03.2012 as detailed below:-

`E E il
Date of Meeting
01-02-2012

b E xEx
i n E J

={li xnE E .

No. of Directors on the Nomination


Committee of Board
3

4.11 +ih i
4.11.1 E x +ih i E M` x E VE
|Vx <C] E +ih/]x, b{E] V
Ex Ei < E iE i x * i E
- { {xM` x E M *

No. of Directors
attended
3

4.11 Share Transfer Committee


4.11.1 The Bank has constituted Share Transfer Committee
for the purpose including but not limited to transfer/
transmission of equity shares, issue of duplicate shares. The
Committee has since been reconstituted from time to time.

69

4.11.2 +ih i E M`x


31.03.2012 E lli i E M` x xxx l
1. V.{. n+
2. b. E
3. B.+ xE
4. x E
5. M n

4.11.2 Composition of Share Transfer Committee


The Composition of the Committee as on 31-03-2012 is as
under:

+vI B |v xnE
E{E xnE
E{E xnE
+vE ES xnE
EM xnE

4.11.3 +ih i E E

1. Shri J.P. Dua

Chairman & Managing Director

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Shri Nirmal Kumar Bari

Officer employee Director

5. Shri Gour Das

Workmen Employee Director

4.11.3 Function of Share Transfer Committee

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


Ex E +xnx + M B +l x] B |h {j E
n +{Ii +{SEiB { Ex E {Si b{E]
|h{j V Ex E +vE + <E B |vEi *
i E E Ex E +vE V E +ih,
|h, b{E] |h{j V Ex +n i +E +
|ME i n*
4.11.4 `E E h:01.04.2011 31.03.2012 E +v E nx i u
+Vi ` E E h xxx :

The Committee is empowered and authorized to approve


transfer, transmission, rejection, subdivision, consolidation of
the shares of the Bank and issue of duplicate share certificates
against lost or destroyed share certificates after observing
requisite formalities. The Committee is also empowered to do
all such acts, things or deeds as may be necessary or incidental
to the exercise of transfer, transmission, issue of duplicate
share certificates etc.
4.11.4 Details of the Meeting
The details of the meetings held by the committee during the
period 01.04.2011 to 31.03.2012 are as under:-

`E E il

b E +ih i xnE E .

={li xnE E .

Date of Meeting

No. of Directors on the Share Transfer


Committee of Board
5
5
5
5
5
4
4
4
4
4
4
4
4
4
4
4
5
5
5
5
5

No. of Directors
attended
3
3
4
5
5
4
4
4
4
3
4
4
4
4
4
3
3
4
4
4
4

40-04-2011
28-04-2011
10-05-2011
19-05-2011
28-06-2011
22-07-2011
12-08-2011
03-09-2011
16-09-2011
29-09-2011
19-10-2011
02-11-2011
16-11-2011
02-12-2011
15-12-2011
28-12-2011
25-01-2012
06-02-2012
16-02-2012
02-03-2012
15-03-2012

4.12 @h +xnx i
i E, k j E nxE 05.12.2011 E V{ji
+vSx J 13/1/2006 + < v +iH {]Eh
E +x E x ` 250 Ec iE E @h |i E +xnx +
` 2 Ec iE E @h Zi/<]-+ |i E +xnx E
=q 22.02.2012 E b E @h +xnx i E M`x
E *

4.12 Credit Approval Committee:


In terms of Govt. of India, Ministry of Finance Notification vide
Gazette Notification no. 13/1/2006 dated 05.12.2011 and
further clarification in this regard, the Bank has constituted a
Credit Approval Committee of the Board on 22.02.2012 for
the purpose of approval of the credit proposals upto ` 250
Crore and Loan Compromise/Write-Off proposals upto ` 2
Crore.

70

4.12.1 @h +xnx i E M`x


31.03.2012 E lli i E dXl < |E l:
1. V.{. n+
2. b. E
3. B.+. xE
4. B ]]S
5. B.E. vx
6. .E. S

4.12.1 Composition of the Credit approval Committee:


The Composition of the Committee as on 31-03-2012 is as
under:

+vI B |v xnE
E{E xnE
E{E xnE
|vE(k B J)
|vE(@h)
|vE(+<+B)

1. Shri J.P. Dua

Chairman & Managing Director

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

4. Shri A. B. Bhattacharjee General Manager (F&A)

4.12.2 @h +xnx i E E
E) ` 250 Ec iE E @h |i(xvE B M-xvE) E
Ei
J) ` 2 Ec iE E @h Zi/<] + |i E +xnx

5. Shri S. K. Widhani

General Manager (Credit)

6. Shri V. K. Chawla

General Manager (IRM)

4.12.2 Function of Credit approval Committee:


a) Sanctioning of Credit Proposals of upto ` 250 Crore [Funded
and Non-Funded]
b) Approval of Loan Compromise/Write-Off proposals of upto

` 2 Crore

4.12.3 `E E h
SE @h +xnx i E M`x 22.02.2012 E E M l
<B k 2011-12 E nx E< ` E +Vi x E
M<*
4.13 xM B +]x i

4.12.3 Details of the Meeting:


As the Credit Approval Committee was constituted w.e.f.
22.02.2012, no meeting of the committee was held during
the financial year 2011-12.
4.13 Share Issue and Allotment Committee:

4.13.1 E E xnE b x nxE 22.02.2012 E {z


+{x ` E i E (i E ]{i) + i Vx
xM E +vx +]x E +v { <C] xMi
B +]x Ex i xM B +]x i E M` x E*

4.13.1 The Board of Directors of the bank in its meeting dated


22-02-2012 constituted a Share Issue and Allotment
Committee for issue and allotment of Equity Shares to Govt.
of India (President of India) and Life Insurance Corporation
of India on preferential allotment basis.

4.13.2 xM B +]x i E M`x :

4.13.2 Composition of Share Issue and Allotment


Committee:

i E M`x nxE 31.03.2012 E lli xxi :

The Composition of the Committee as on 31-03-2012 is as


under:

1. V.{.n+
2. b. E
3. B. + xE
4. x E

1. Shri J.P. Dua

Chairman & Managing Director

2. Shri D. Sarkar

Executive Director

3. Shri M.R. Nayak

Executive Director

+vI B |v xnE
E{E xnE
E{E xnF
+vE ES xnE

4. Shri Nirmal Kumar Bari Officer employee Director

4.13.3 xM B +]x i E E
i E B E B E B |vEi E M V +vx
+]x E +v { i E E <C] E xM B
+]x il ] ]E BCSV B < ]E BCSV =
Ser Ex i +E *

71

4.13.3 Function of Share Issue and Allotment Committee:


The committee was authorized to do all such acts, deeds
and things as may be required in connection with the issue
and allotment of Equity Shares to Govt. of India and Life
Insurance Corporation of India on preferential allotment basis
and get the same listed with the National Stock Exchange
and Bombay Stock Exchange.

4.13.4 ` E E h
nxE 01.04.2011 31.03.2012E +v E nx i E
` E E h xxi -

4.13.4 Details of the Meeting


The details of the meeting of the Committee during the
period 01.04.2011 to 31.03.2012 are as under:

`E E il

b E +]x
i xnE E .

={li xnE E .

Date of Meeting

No. of Directors on the Share Allotment


Committee of Board

No. of Directors
attended

03-03-2012

29-03-2012

5. xnE E {v

5 Remuneration to Directors:

M-E{E xnE E j B k i n Vx
{v i E/i V E E nxn E +x
|nx E V *
5.1 2011-12 E nx E E {hEE xnE +li +vI
B |v xnE B E{E xnE E Mix EB MB ix B
|ix E h xxx :

The remuneration including traveling and halting expenses


to the Non- Executive Directors is paid as decided by the
Government of India /RBI guidelines.
5.1 The details of salary including incentives paid to the wholetime Directors of the Bank i.e Chairman & Managing Director
and Executive Director during the year 2011-12 are as under:

(` ) /(` in )

G x

Sl
Name
No.

M< k

|ix

Basic

Dearness
Allowance

Arrear

Incentives

Total

953295.00

510448.65

40129.50

800000.00

2303873.15

821490.00

439889.10

34566.60

650000.00

1945945.70

821490.00

439889.10

34566.60

650000.00

1945945.70

Vn xnE / Existing Directors


1. V.{. n+ (+.|.x.)
Shri J.P. Dua ( CMD)
2.

b. E (E.x)
Shri D. Sarkar (ED)

3.

B.+. xE (E.x.)
Shri M. R. Nayak (ED)

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

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

5.2 18.10.2011 M-E{E xnE E |iE b ` E


={li x i ` 10,000/- + b E i E ` E
={li x i ` 5,000/- E Mix E V * il{, E
E +vI B |v xnE, E{E xnE + E u
xi xnE, E ]M E E Mix x E Vi*

5.2 With effect from 18-10-2011, the Non-Executive Directors


are being paid a sitting fee of ` 10,000/- for attending each
Board Meetings and ` 5,000/- for Committee Meetings. Sitting
fees are, however, not paid to the Chairman and Managing
Director, Executive Directors of the Bank and Government
Nominee Directors.

72

6. Vx b `E :
6.1 E E Mi ix E vh ` E E h xxx :
`E E {
Nature of Meeting

6. General Body Meetings:


6.1 Particulars of past three Annual General Meetings of the
Bank.

`E E iJ

lx

Date & Time

Venue

i E vh
`E

15 Vx 2009
{x 10.30 V

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

Seventh
Annual
General Meeting

Monday, 15th June,


2009, 10.30 A.M.

Eastern Zonal Cultural


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

+` E vh
`E

M 10 Vx 2010
{x 10.30 V

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

Eighth Annual
General Meeting

Thursday, the 10th


June, 2010,10.30
A.M.

Eastern Zonal Cultural


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

x E vh
` E

G 10 Vx 2011
{x 10.30 V

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

Nineth Annual
General Meeting

Friday, the 10th June,


2011, 10.30 A.M.

Eastern Zonal Cultural


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

73

|Vx
Purpose

31.03.2009 E {i i E E ix{j,
-x J, tuFtyt u E E M< +v
i E E GE{ E v xn E b
E {] il tu F tyt B ix {j {
J{IE E {] { SS, +xnx +
+MEh il <C] { Pi
Ex, EEk ]E BCSV . E E
<C] E SUE { +Sr
Ex + +EE H { BE vE
xnE E xSi Ex E +xnx*
To discuss, approve & adopt the Balance Sheet
of the Bank as at 31-03-2009, Profit & Loss
Account of the Bank for the year ended 31st
March, 2009, the Report of the Board of
Directors on the working and activities of the
Bank for the period covered by the Accounts,
the Auditors Report, to Declare Dividend on
Equity shares, to approve voluntarily delisting
of equity shares of the Bank from the Calcutta
Stock Exchange Ltd. and to elect one
shareholders director in casual vacancy.

31.03.2010 E lli E E ix {j,


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

31.03.2011 E lli E E ix {j,


31 S 2011 E {i i E E
x J, J+ u E E M<
+v i E E G E{ E v
xnE b E {] il J+ B
ix{j { J{IE E {] { SS,
+xnx + +MEh, <C] {
Pi Ex*
To discuss, approve & adopt the Balance
Sheet of the Bank as at 31-03-2011, Profit &
Loss Account of the Bank for the year ended
31st March, 2011, the Report of the Board of
Directors on the working and activities of the
Bank for the period covered by the Accounts,
the Auditors Report, to Declare Dividend on
Equity shares.

6.2 E< E{ x E vh ` E {i x E
M l*
6.3 10.06.2011 E +Vi {U E vh ` E
xxJi xnE ={li l*
1. V.{. n+
2. b. E
3. B.+. xE
4. B J
5. V B Sin
6. M n
7. n E E{
8. n{ Sv

6.2 No Special Resolution was passed in the Nineth Annual


General Meeting.
6.3 The following Directors were present in the last Annual
General Meeting held on 10-06-2011

+vI B |vxnE
E{E xnE
E{E xnE
u xi xnE
xn JE xnE
EM ES xnE
vE xnE
vE xnE

Shri J.P.Dua

6.4 k 2011-12 E nx {] ] u E< E{


{i x E M* il{, nxE 24.03.2012 E {z E E
vE E +vh x `E BE E{ {i
E M, E E |] +li i E ]{i (i E)
E +vx +]x E +v { ` 1003/- Ec E i
` 182.94 E | { |i ` 10/- E n { 51985073
+ i Vx xM B <E z Vx+ E +vx
+]x E +v { ` 460/- Ec E i ` 182.94 E
| { |i ` 10/- E n { 23810771 <C] E
xM B +]x E +xnx Ei B BE E{ {i E M*
7. |E]Eh
E x x EM EB Vx E <i +{x
|]/xnE, |vx + =xE v +n E l E< B
i{h xnx x EB Vx Oi: E E i E l
]E E x *

Chairman & Managing Director

Shri D. Sarkar

Executive Director

Shri. M.R. Nayak

Executive Director

Shri S. Ramaswamy

RBI Nominee Director

Shri R. M. Chaturvedi

C.A. Nominee Director

Shri Gour Das

Workmen Employee Director

Shri Deveshwar Kumar Kapila

Shareholders Director

Shri Sudip Chaudhuri

Shareholders Director

6.4 No Special Resolution was passed by postal ballot during


the financial year 2011-12. However the shareholders of the
Bank in the Extraordinary General Meeting held on 24-032012 passed one special resolution approving issue and
allotment of 5,19,85,073 equity shares of ` 10/- each at a
premium of ` 182.94 amounting to ` 1003/- crore on
preferential allotment basis to the Promoter of the Bank i.e.
President of India(Govt. of India) and 2,38,10,771 equity shares
of ` 10/- each at a premium of ` 182.94 amounting to ` 460/crore on preferential allotment basis to Life Insurance
Corporation of India and its various schemes (LIC).
7. Disclosures:
Other than those in the normal course of banking business,
the Bank has not entered into any materially significant
transactions with its Promoter/Directors, Management, their
relatives etc. that may have potential conflict with the interest
of the Bank at large.

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

The Bank has complied with all the requirements regarding


capital market and has not been imposed with any penalty or
stricture by the Stock Exchanges or SEBI or by any Statutory
/ Regulatory Authority during the last three years.
A Whistle Blower mechanism exists in the Bank and no
personnel of the Bank has been denied access to the Audit
Committee.

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


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

The Bank has complied with mandatory requirement of Clause


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

2011-12 i E{] Mxx { vE Exp J {IE


E |h{j < {] E l Mx *
+vI B |v xnE +li E E J EE +vE il
|vE (k B J) B B+ +li ]E BCSV E l
]M E E Jb 49V l xvi E E k E E
|J H |h{j |{i E M + b E I |ii E
M V < E {] E l Mx *

A certificate of the Statutory Central Auditors on Corporate


Governance for the year 2011-12 is annexed to this report.

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

Management discussion and analysis report forms part of the


Directors Report.

A Certificate from the Chairman and Managing Director i.e


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

74

7.1 M-+vniE +{IB

7.1 Non-Mandatory Requirements

M-+vniE +{I+ E Exx xxx

The extent of implementation of non-mandatory requirements


is furnished hereunder

+{I

+x{x

REQUIREMENT

COMPLIANCE

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


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

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


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

Company may train Board members in the Business model


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

The Directors are nominated for training programs as and


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

8. |h E v
E |tME + S v E =zx + E V E
x E xi + <E l E x +{x
ivE E =xE v +x SxB |nx Ex E +Ei
E E E * E =x i ]E BCSV E i/
U/E k {h |i Ei V E E Sr
* <x vE +{I E +x BE ] S {j il
BE EEi li Ij E S {j |Ei E
Vi * 2011-2012 E n x i k {h <xx
BC| (+OV) Vx ]hbb (+OV) bBxB x (+OV)
il +xxn V {jE (M) i +Oh S{j |Ei
EB MB l* {h E E E <] www.allahabadbank.in
{ |ni E M*
E/lMi xE E EB MB |Vx]x E E <]
www.allahabadbank.in { nB MB *
9. vE i vh Sx
9.1 n E vh `E E h
nx + nxE

lx

M, 14 Vx, 2012
{x 10.30 csu
<]x Vx ES ],
+< -201, C]-***,
] E ], EEi - 700106
9.2 k {h (+xi) fuU |Ex nu;w rJteg JMo YJk
Eb :
E E k +| S * xxJi iJ E {i
+v i i {h E +xnx
30 Vx, 2012
- V<, 2012 E +i
30 i 2012
- +H, 2012 E +i
31 n 2012
- Vx 2013 E +i
31 S 2013
- J{Ii E J
+|-< 2013

8. Means of Communication:
The Bank appreciates the benefit accruing to the society with
the advent and advancement of technology and means of
communications and further recognized the need of keeping
its stakeholders informed of the events of their interest. The
quarterly/half yearly/ annual financial results of the Bank are
informed to all the Stock Exchanges where the shares of the
Bank are listed. These are published in one national newspaper
and one regional language newspaper based at Kolkata as
per statutory requirement. During the year 2011-12, the
quarterly financial results were published in leading
newspapers namely Financial Express(English), Business
Standard (English), DNA Money (English) and Aanand Bazaar
Patrika (Bengali) etc.. The results are also displayed on the
web site of the Bank www.allahabadbank.in.
The presentation made to the analysts/institutional investors
are hosted on the Banks Website www.allahabadbank.in
9. General Shareholders Information:
9.1 Particulars of 10th Annual General Meeting:
Day & Date

Thursday, the 14th June, 2012

Time
Venue

10.30 A.M.
Eastern Zonal Cultural Centre,
IB-201, Sector-III, Salt Lake City,
Kolkata-700 106
9.2 Financial Year and Calendar for Publication of Financial
Results (Tentative):
The Financial Year of the Bank is April to March
Approval of quarterly results for the period ending
June 30, 2012
September 30, 2012
December 31, 2012
March 31, 2013

- End of July, 2012


- End of October, 2012
- End of January, 2013
- Audited Annual Accounts:
April- May, 2013

9.3 E CV E iJ ( B BVB)

9.3 Date of Book Closure (Dividend & AGM):

E CV - x 26 <, 2012 M 14 Vx, 2012


(nx nx )

Book closure- Saturday, the 26th May, 2012 to Thursday, the


14th June, 2012 (Both days inclusive)

75

9.4 Mix E il: G, 29 Vx, 2012


9.5 ]M
9.5.1 ]E BCSV ]M

9.4 Dividend Payment Date: Friday, 29th June, 2012


9.5 Listing
9.5.1 Listing on Stock Exchanges

]E BCSV

]E Eb

]M E il
Date of Listing

Stock Exchange

Stock Code

xx ]E BCSV (BxB<)

BBE

National Stock Exchange (NSE)

ALBK

27.11.2002

532480

27.11.2002

< ]E BCSV (B<)


Bombay Stock Exchange (BSE)

k 2012-13 i E Sri E ={H ]E BCSV


E { |i E V SE *
9.5.2 +x{x +vE
B.. ]]S, |vE(k B J) B B+ E
E z |vx, +x vE |vE + ]E BCSV
E l Sri E E +x{x Ex i +x{x +vE
E { xq] E M *
9.6 V b]/E E x{nx
k 2011-12 E nx xx ]E BCSV (BxB<)
+ ]E BCSV (B<) ]bM EB MB E j
+ E =SS B xx E]x E h xxi :

/Month
=SS

High
(`)

BxB< /NSE
xx

The annual listing fee for the financial year 2012-13 has
already been remitted to the above Stock Exchanges.
9.5.2 Compliance Officer
Shri A.B. Bhattacharjee, General Manager (F&A) & CFO has
been designated as the Compliance Officer for complying
with various provisions of SEBI, other statutory authorities
and Listing Agreements with the Stock Exchanges.
9.6 Market Price Data:
The monthly high and low quotations and the volume of
shares traded on National Stock Exchange (NSE) and
Bombay Stock Exchange (BSE) during the Financial year
2011-12 were as follows:

=SS

Volume (Number
of shares) (Total)

238.95

202.10

14185070

236.80

202.70

1656052

206.95

176.25

20484405

207.00

183.70

2501855

Vx/June, 11

204.05

185.40

8906552

203.90

186.50

1646482

V</July,

11

222.00

192.35

18842062

222.00

193.25

2907704

+Mi/Aug,

11

206.50

166.70

10791207

206.45

167.20

1159152

180.35

154.10

14384082

184.60

150.35

1193619

160.00

139.00

14065062

159.80

139.05

1679454

x/Nov, 11

173.80

120.85

28640267

174.00

142.00

3959239

n/Dec, 11

167.00

113.40

23969869

167.40

113.60

2968713

Vx/Jan, 12

164.00

114.45

25119619

164.25

114.70

3199980

/Feb, 12

211.30

160.30

32814988

211.40

160.30

4318306

S/Mar, 12

208.55

174.10

25977536

207.10

175.65

3509577

i/Sep,
+H/Oct,

11

11

76

Low
(`)

Low
(`)

+|/April, 11
</May, 11

High
(`)

B< /BSE
xx

Volume (Number
of shares) (Total)

9.7 B Bb { BxBC x}] E ix E E E


Ex{nx xxi :
nxE

9.7 Performance of Banks share in comparison with the


movement of S & P CNX Nifty is shown hereunder:

BxB< E E E CVM (`)


Closing Share Price of Bank at NSE (`)

B Bb { BxBC x}]

Date
01-04-2011
02-05-2011
01-06-2011
01-07-2011
01-08-2011
02-09-2011
03-10-2011
01-11-2011
01-12-2011
02-01-2012
01-02-2012
30-03-2012

225.95
198.35
200.15
195.00
202.05
175.30
154.60
148.95
158.60
116.75
163.85
186.05

5826.05
5701.30
5592.00
5627.20
5516.80
5040.00
4849.50
5257.95
4936.85
4636.75
5235.70
5295.55

9.8 V] B ]x BV]

S & P CNX Nifty

9.8 Registrar and Share Transfer Agent:

BB . 77/2A W b, EEi 700 029 cfU fuU


V] B ]x BVx] *
9.9 +ih |h

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


Registrar and Share Transfer Agent

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


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

As per SEBI guidelines, investors can avail the facility of


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

9.10 31.03.2012 E lli vi E {

9.10 Distribution of shareholding as on 31-03-2012

vE E J

Category

No. of shareholders

upto 500

9.9 Share Transfer System:

E E |ii (%)
Percentage of Total (%)

E J
No. of Shares

E E |ii (%)
Percentage of Total (%)

153948

89.00

26706513

5.34

501 to 1000

14198

8.21

9888929

1.98

1001 to 2000

3037

1.76

4348780

0.87

2001 to 3000

657

0.38

1606027

0.32

3001 to 4000

309

0.18

1090263

0.22

4001 to 5000

153

0.09

712065

0.14

5001-10000

247

0.14

1765174

0.35

10001and above

428

0.24

453908438

90.78

172977

100.00

500026189

100.00

E/Total

9.11 E b]<Vx
E E E ]bM +x { b] E Vi * E
E <C] E +<B+<Bx Eb INE428A01015.

9.11 Dematerialization of shares

31.03.2012 E lli E E 459465024 , b]<V


V <C] E 91.89% *

As on 31-03-2012, 459465024 shares constituting 91.89%


of the equity shares are in dematerialized form.

The Banks shares are compulsorily traded in demat form.


The ISIN code of Banks Equity Shares is INE428A01015.

77

31.03.2012 E lli vE u b] + VE
J MB E h xxx *

Particulars of shares in Demat and Physical form held by the


shareholders as on 31-03-2012 are as under:

vE E J

E J

vi E %

No of shareholders

No. of shares

% of shareholding

53472

40561165

8.11%

89015

176044527

35.21%

30490

283420497

56.68%

172977

500026189

100.00%

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

31.03.2012 E lli i E E E <C] vi


276215418 V E E E |nk {V E 55.24% *

The total Equity holding of Govt. of India as on 31-03-2012 is


276215418 which constitute 55.24% of the total paid up
capital of the Bank.

9.12 +V E il E< Vb+/Bb+/] +x Ex]


<]] E x *
10. +ih B xE Ei xh
E x . BB . E V] B +ih BV] E {
xH E V xE E Ei E vx, il {i
{ix, E +ih/ |h, +vn {ix +n E v
vE E +xv E nV Ei * xE E v i
=xE Ei |vx E, EEi E E Vi *

9.12 There are no outstanding GDRs /ADRs /Warrants or any


Convertible instruments as on date.

xE +{x +xv/Ei i V] E { +l E
xxLi {i { nV E Ei :

The investors may lodge their requests/complaints either with


the Registrar or with the Bank at the following address:-

10. Share Transfer and Redressal of Investors Grievance


The Bank has appointed M/s MCS Ltd. as the Registrar and
Share Transfer Agent for receiving the shareholders complaints, share transfer/transmission request, resolution of investors grievances, amongst other activities connected with
the change of address, change of mandate etc. For the convenience of the investors grievance/ complaints from them
are also accepted at the Bank Head Office in Kolkata.

allahabadbank.grievance@yahoo.co.in

|vE
M B xE Ei EI
<n E, |vx E
2, xiV b
EEi-700 001
]: 033-22420878
C: 033-22107424
<: investors.grievance@allahabadbank.in

M/s MCS Ltd.

The Manager,

(Unit: Allahabad Bank)

Share Deptt.& Investors Grievance Cell,

77/2A, Hazra Road,

Allahabad Bank, Head Office ,

Kolkata-700029.

2, Netaji Subhas Road,

Tel; 033-40724051 to 54, 033-24541892

Kolkata-700 001.

Fax : 033-24541961,24747674

Tele: 033-22420878

Email: mcscal@cal2.vsnl.net.in OR

Fax: 033-22107424

allahabadbank.grievance@yahoo.co.in

Email: investors.grievance@allahabadbank.in

. BB .
(gqrlx : Rttntct= cfU)
77/2B, V b,
EEi-700029
]: 033-40724051 54, 033-24541892
C: 033-24541961, 24747674
<: mcscal@cal2.vsnl.net.in OR

10.1 |{i, xii B i Ei E J

10.1 Number of complaints received, resolved and pending

vE E Ei v BB ., EEi
u |{i E Vi il E u |{i E M< Ei E =H
E{x E +Oi E n Vi * 2011-12 E nx |{i
B xii il nxE 31.03.2012 E i +xv /Ei
E h xxi -

All the complaints from the shareholders are received directly


by M/s MCS Ltd. Kolkata and those received by the Bank are
forwarded to them. The details of requests/complaints received
and resolved during the Financial year 2011-12 and pending
as on 31-03-2012 are as follows:

78

nxE 31.03.2011 E
lli i

2011-12 E nx |{i

xii

Pending as on 31-03-2011

Received during 2011-12

Resolved

x/Nil

1183

1183

nxE 31.03.2012 E
lli i

Pending as on 31-03-2012

Ei /+xv E .
No. of Complaints/requests

b] =Si Ji +n {c E h xxi :
nxE 01.04.2011 E lli
E/+n
2011-12 E nx nEi B l
Ji +ii
-

i)
ii)

x/Nil

The details of unclaimed shares lying in the Demat Suspense


Account are as under:
i) Shares outstanding/unclaimed

4126

as on 01-04-2011
ii) Shares claimed and transferred to

4126

Nil

4126

Beneficiary account
during the year 2011-12

nxE 31.03.2012 E lli


E / +n
4126
+n / E E v inx Ex E +vE E =xE
u n Ex iE E J VBM *

The voting rights in respect of the unclaimed/outstanding


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

v n E |{i { b] =Si Ji {c E
nn E Ji V E Vi *

On the receipt of valid claim from the rightful owner the shares
lying in the Demat Suspense account are credited to the
claimant.

11. vi {ri (nxE 31.03.2012 E lli)

11. Shareholding Pattern (as on 31.03.2012)

iii)

iii) Shares outstanding/unclaimed as


on 31-03-2012

vE E J

vi E J

<C] E %

Description

No. of Holders

No. of shares held

% to equity

i E/Government of India
E{x/Insurance Companies
S+ b/]+< Mutual Funds/UTI
k lB / E Financial Institutions/Banks
n lMi xE (n k lB)
Foreign Institutional Investors
(Foreign Financial Institutions)

x B =bx/Trust and Foundations


xMi xE/Bodies Corporate
ES i x H
Resident Individuals including Employee

+x i/Non
E /TOTAL

Resident Indians

276215418

55.24

36

89259724

17.85

66

15186131

3.04

10

193642

0.04

169

62681178

12.54

16

40068

0.01

1302

6862800

1.37

170502

49212751

9.84

875

374477

0.07

172977

500026189

100.00

12. xx <C]xE CM ] (Bx<B)


xx <C]xE CM ] (Bx<B) E Mix
E BE x< v V xE E E v =E E Ji
V E V Ei * E +{x vE E =xE E Ji
v V Ex E v E E{ ={v E *
rfU;w vE E E Ji E E ExpEi EM x
(B) J x SB*

12. National Electronic Clearing Services ( NECS)

<B xb] E {] E l Mx V VE
vh Ex vE u V] B +ih

The ECS mandate form is enclosed with the Annual Report,


which may be sent to the Registrar & Share Transfer Agent by

National Electronic Clearing Services (NECS) is a novel


method of payment of Dividend, where the amount to the
investors can directly be credited to his/ her Bank Account.
The Bank is offering the services to the shareholders with an
option to avail the facility for direct credit of the dividend in
their Bank account. However the Bank account of the
shareholders should be in Centralized Banking Solution(CBS)
Branch of the Bank.

79

BV] E V VB * bbu]<V { Jx
vE <B xb] i +{x b{rV] {]{] {E E*
vE E Ex { Bx<B E v |{i Ex
E E{ {i E V Ei *

the shareholders, who are holding shares in physical form.


Shareholders holding shares in dematerialized form may
contact their respective Depository Participant for their ECS
mandate. The option to receive dividend through NECS may
be discontinued at any time at the instance of the
shareholders.

13. +S i

13. Code of Conduct

E x xnE b + ` |vx EE i |V +S
i i E + < 17.10.2005 E +Vi +{x ` E
b u +MEi E M il E E <] +li
www.allahabadbank.in { ={v *

The Bank has framed the Code of Conduct applicable to


the Board of Directors and Senior Management Personnel
and the same has been adopted by the Board at its meeting
held on 17-10-2005 and the same is available on the Banks
website viz .www.allahabadbank.in

b E n + ` |vx x E +v { i E
+x{x E {] E + +vI B |v xnE E + E
M< < + E Ph < |inx E + *

The Board members and senior management have affirmed


compliance with the code on annual basis and a declaration
to this effect from the Chairman and Managing director, forms
part of this report.

Ph

Declaration

E x b E n + E E ` |vx i +S i
xvi E + < E E <] { b *

The Bank has laid down Code of Conduct for all the Board
members and Senior Management of the Bank and the same
is posted on the Banks website.

b E n + ` |vx x +S i E +x{x E
EH n *

The Board members and Senior Management have affirmed


compliance with the Code of Conduct.

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

(J. P. Dua)
Chairman & Managing Director

14. fUtvtu o h u x rlgk tK fu U yrlJtgo ylw c k " fu U ylw v ttl fUt


btKvt

14. Certificate of compliance of mandatory stipulations of


Corporate Governance

Nugh ctsth fuU mt: mqaefUhK fUe N;tu fuU ylwmth yrlJtgo ylwck" fuU
ylwvttl mu mkckr"; cfU fuU mtkrJr"fU fuUrg tuFtvheGfUt fuU tht
sthe btKvt mktl rfUgt dgt ni>

The certificate issued by the statutory central auditors of the


Bank, regarding compliance of mandatory stipulations of
Corporate Governance in terms of the listing agreement with
the stock exchange is attached.

xnE b E B B =xE +

For and on behalf of the Board of Directors

nxE : 05.05.2012
lx: EEi

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

Date:
Place:

80

05.05.2012
Kolkata

(J. P. Dua)
Chairman & Managing Director

J{IE E |h{j

Auditors Certificate

<n E E vE E B
x ]E BCSV E l E E Sri E E Jb 49
lxvi E +x 31 S, 2012 E {i i <n
E, EEi E E{] Mx E li E +x{x E VS
E *
E{] Mxx E i E +x{x E Vn |vx E *
VS E{] Mx E i E +x{x xSi Ex i
E E u +{x< M< |G + =E Exx iE i l*
x i J{I + x E E k h { +i
H Ex *

To The Shareholders of Allahabad Bank

il =k VxE nB MB {]Eh E
+x |hi Ei E E x ={H Sri E
xvi E{] Mx E i E +x{x E +
i V E E nxn E =Px x Ei *

In our opinion and to the best of our information and according


to the explanations given to us, we certify that the Bank has
complied with the conditions of Corporate Governance as
stipulated in the above mentioned Listing Agreements; to the
extent these do not violate RBI guidelines.

Ex E +x{x x i E E i i
+x + x E E Ex{nx |vx E Ei B
|i *

We further state that such compliance is neither an assurance


as to future viability of the Bank nor the efficiency or
effectiveness with which the management has conducted
the affairs of Bank.

We have examined the compliance of conditions of Corporate


Governance by Allahabad Bank, Kolkata for the year ended
on 31st March 2012, as stipulated in clause 49 of the Listing
Agreements with the Stock Exchange(s).
The compliance of Conditions of Corporate Governance is
the responsibility of Management. Our examination was
limited to procedures and implementation thereof, adopted
by the Bank for ensuring the compliance of the conditions of
the Corporate Governance. It is neither an audit nor an
expression of opinion on the financial statements of the Bank.

Ei { B Bb BB]

Ei B. +. xh Bb E.

Ei B P Bb E.

For P A & Associates

For M. R. Narain & Co.

For S. Ghose & Co.

xn JE / Chartered Accountants
B.+. . / F.R. No:313085 E
(n{ E +O)

xn JE / Chartered Accountants
B.+. . / F.R. No: 002330 S
(B. Bx. E]x) / (M N Venkatesan)
{]x / Partner
ni . / Membership No.-22993

xn JE / Chartered Accountants
B+ . / F.R. No: 302184 E
(Sxnx S]]{v) / (Chandan Chattopadhay)
{]x / Partner
ni . / Membership No.-51254

Ei E. B. +O Bb E.

Ei B. . Vx Bb E.

Ei Bx.E. M Bb E.

For K. M. Agarwal & Co.

For M. C. Jain & Co.

For N. K. Bhargava & Co.

xn JE / Chartered Accountants
B.+. . / F.R. No: 0853 N
(. {. )

xn JE / Chartered Accountants
B.+. . / F.R. No: 304012 E
(E E {])

xn JE / Chartered Accountants
B+ . / FR No: 000429N
(Bx.E. M)

(C. P. Mishra)

(Mukesh Kumar Patawari)

(N. K. Bhargava)

{]x / Partner
ni . / Membership No.-073009

{]x / Partner
ni . / Membership No.-056623

{]x / Partner
ni . / Membership No.-080624

(Dillip Kumar Agarwalla)

{]x / Partner
ni . / Membership No.-55420

lx / Place: EEi / Kolkata


nxE / Date: 5th May, 2012

81

< n E
ALLAHABAD BANK

31 S, 2012 fUtu lli ix-{j


BALANCE SHEET AS ON 31ST MARCH, 2012

+xS

Particulars

lli

lli

31.03.2012

(` V )

31.03.2011

(` V )

Schedule

As on 31.03.2012
(` in thousand)

As on 31.03.2011
(` in thousand)

1
2
3
4

5,000,262
100,065,868
1,595,930,804
90,944,791

4,762,154
80,311,712
1,318,871,603
69,181,774

{V + niB
CAPITAL & LIABILITIES

{V / Capital
|Ii B +v /Reserves & Surplus
V / Deposits
=v /Borrowings
+x niB BB |vx / Other Liabilities
and Provisions

37,403,953

39,736,366

1,829,345,678

1,512,863,609

87,124,452

79,009,281

7
8
9
10
11

53,127,636
542,832,364
1,111,450,987
11,977,310
22,832,929
1,829,345,678

31,264,477
432,470,643
936,248,884
11,482,285
22,388,039
1,512,863,609

12

613,339,155

563,944,857

61,648,303

39,845,979

E /Total:
+i /ASSETS
i W E xEn +
Cash and Balances with
Reserve Bank of India

E + M il +{ Sx { n vx
Balances with Banks and
Money at Call and Short Notice
xvx /Investments
+O /Advances
l +i /Fixed Assets
+x +i /Other Assets
E / Total:

+EE niB / Contingent Liabilities


h E B / Bills for Collection
xnE / Directors:
b E Cx / Dr. Shashank Saksena
B =nMi / Sri A Udgata
V B Sin /Sri Rajesh M Chaturvedi
M n / Sri Gour Das
x E / Sri Nirmal Kumar Bari
n xh /Sri Deveshwar Narain Singh
b n{ Sv / Dr. Sudip Chaudhuri
+E V / Sri Ashok Vij

V. {. n+
+vI B |v xnE
J. P. DUA
Chairman & Managing
Director

B. +. xE

]. +. S

E{E xnE

E{E xnE

(M. R. NAYAK)
Executive Director

(T. R. CHAWLA )
Executive Director

+. E.

E |vE (k B J)
(R. K. MEHRA)
Assistant General Manager (F& A)

A. B. Bhattacharjee
General Manager (F & A)
CFO & Compliance Officer

il E {] E +x / As per our report of even date


Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


JE / Chartered Accountants
B.+. ./F.R. No:313085 E

xn

xn

(n{ E +O)

For M. R. Narain & Co.


JE / Chartered Accountants
B.+. ./F.R. No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

Ei E. B. +O Bb E.

Ei B. . Vx Bb E.

xn

For K. M. Agarwal & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 0853 N

xn

ni

For M. C. Jain & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 304012 E

(E E {])

(. {. )

lx / Place: EEi / Kolkata


nxE / Date: 5th May, 2012

B.. ^S

|vE (k B J)
B+ B +x{x +vE

(Mukesh Kumar Patawari)


{]x /Partner
ni ./ Membership No.-056623

(C. P. Mishra)
{]x /Partner
./ Membership No.-073009

82

Ei B P Bb E.
For S. Ghose & Co.

xn JE /Chartered Accountants
B.+. ./F.R. No: 302184 E
(Sxnx S]]{v) (Chandan Chattopadhay)
{]x / Partner
ni ./ Membership No.-51254
Ei Bx.E. M Bb E.
For N. K. Bhargava & Co.
xn JE /Chartered Accountants
B.+. . / FR No: 000429N

(Bx.E. M)

ni

(N. K. Bhargava)
{]x /Partner
./ Membership No.-080624

< n E

ALLAHABAD BANK
31 S, 2012 E {i i YJk x J
Profit and Loss Account for the year ended 31st March, 2012

h
Particulars
I

II

III

IV

{i

+xS

{i

31.03.2012

(` V )

31.03.2011

(` V )

Schedule

Year Ended 31.03.2012


(` in thousand)

Year Ended 31.03.2011


(` in thousand)

13
14

155,232,776
12,986,792
168,219,568

110,146,917
13,704,127
123,851,044

15
16

103,606,301
26,913,887

69,922,242
23,383,021

19,031,504
149,551,692
18,667,876
1,064,021
19,731,897

16,314,730
109,619,993
14,231,051
1,251,984
15,483,035

4,700,000
7,500,000
116,493

3,600,000
4,000,000
0.00

2,090,000
0.00
3,000,157
486,701
1,838,546
19,731,897

3,560,000
-61,803
2,857,293
463,524
1,064,021
15,483,035

39.18

31.85

+ / INCOME
+Vi V /Interest earned
+x + /Other income
E /Total :
/EXPENDITURE
E M V /Interest expended
{Sx /Operating expenses
|vx + +EE /

Provisions & contingencies


E /Total :
x / Net Profit
+Oxi /Balance brought forward
E /Total :
xVx /APPROPRIATIONS
vE |Ii E +ih /Transfer to Statutory Reserve
V |Ii E +xih /Transfer to Revenue Reserve
{V |Ii-+x E +ih/ Transfer to Capital Reserve - Others

|Ii E +ih
(ytgfUh yr"rlgb, 1961 E v

36 (I)(viii) fuU ylwmth)


Transfer to Special Reserve (in terms of
Sec 36(I)(viii) of I.T. Act 1961)
+<+B Ii E/mu yk;hK /Transfer to / from IRS Reserve
|ii / Proposed Dividend
{ E / Tax on Dividends
ix {j +Ouxi /Balance carried to Balance Sheet
E /Total :
i{h J xi / Significant Accouning Policies 17
J { ]{{h / Notes on Accounts
18
|i +Vx (`) / Earnigs per share (`)

>{ ni +xS J E +z +M

The schedules referred to above form an integral part of the accounts


xnE / Directors:
b E Cx / Dr. Shashank Saksena
B =nMi / Sri A Udgata
V B Sin /Sri Rajesh M Chaturvedi
M n / Sri Gour Das
x E / Sri Nirmal Kumar Bari
n xh /Sri Deveshwar Narain Singh
b n{ Sv / Dr. Sudip Chaudhuri
+E V / Sri Ashok Vij

V. {. n+
+vI B |v xnE
J. P. DUA
Chairman & Managing
Director

B. +. xE

]. +. S

E{E xnE

E{E xnE

(M. R. NAYAK)
Executive Director

(T. R. CHAWLA )
Executive Director

+. E.

E |vE (k B J)
(R. K. MEHRA)
Assistant General Manager (F& A)

A. B. Bhattacharjee
General Manager (F & A)
CFO & Compliance Officer

il E {] E +x / As per our report of even date


Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


JE / Chartered Accountants
B.+. ./F.R. No:313085 E

xn

xn

(n{ E +O)

For M. R. Narain & Co.


JE / Chartered Accountants
B.+. ./F.R. No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

Ei E. B. +O Bb E.

Ei B. . Vx Bb E.

xn

For K. M. Agarwal & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 0853 N

xn

ni

For M. C. Jain & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 304012 E

(E E {])

(. {. )

lx / Place: EEi / Kolkata


nxE / Date: 5th May, 2012

B.. ^S

|vE (k B J)
B+ B +x{x +vE

(Mukesh Kumar Patawari)


{]x /Partner
ni ./ Membership No.-056623

(C. P. Mishra)
{]x /Partner
./ Membership No.-073009

83

Ei B P Bb E.
For S. Ghose & Co.

xn JE /Chartered Accountants
B.+. ./F.R. No: 302184 E
(Sxnx S]]{v) (Chandan Chattopadhay)
{]x / Partner
ni ./ Membership No.-51254
Ei Bx.E. M Bb E.
For N. K. Bhargava & Co.
xn JE /Chartered Accountants
B.+. ./ FR No: 000429N

(Bx.E. M)

ni

(N. K. Bhargava)
{]x /Partner
./ Membership No.-080624

< n E
ALLAHABAD BANK
xEn | h-{j

31 S, 2012 E {i i

Cash Flow Statement


For the year ended 31st March, 2012

h / Particulars

2011-12

(` nsth )(` in thousand)


2010-11

{Sx Miv xEn |


Cash Flow from Opreting Activities

E nx +O, xvx +n |{i V


Interest received during the year from advances,
Investments etc.
+x + / Other Income

155232776
12944420

168177196

110146917
13659647

123806564

P]B/Less:
E nx V { |nk V
Interest paid during the year on Deposit

(97428717)

(64983235)

|vx B +EEi+ i {Sx


Operating Expenses including Provisions &
Contingencies

(45945391)

(143374108)

(39697750)

(104680985)

Vc: / Add:
l +i { /
Depreciation on Fixed Assets

734980

663897

25538068

19789476

E. {Sx Vi xEn
({SxMi +i + ni+ {ix {)
a.

Cash Profit generated from operations


(prior to changes in operating assets and liabilities)

J. ni+ r (E) :
b.

Increase (Decrease) in Liabilities : Deposit

277059201

+x niB B |vx/Other Liabilities & Provisions

(2238886)

258314063
4718039
274820315

263032102

M. +i E (r) :
c.

Decrease (Increase) in Assets:

+O /Advances
xvx /Investments
+x +i /Other Assets
E. {SxMi Miv x
xEn | (E+J+M)

(175202102)

(220200166)

(110361721)
(444890)

(48184404)
(286008713)

(8595688)

(276980258)

A. Net Cash Flow from Operating


activities (a+b+c)

14349670

5841320

x Miv xEn |
Cash Flow from Investing Activities

l +i E G/x{]x
Sale/disposal of fixed assets

92253

12748

(1322259)

(976183)

l +i E G /
Purchase of fixed assets

84

xEn | h-{j (V...) / Cash Flow Statement (Contd.)


h / Particulars
J. x Miv x xEn |

(` nsth )(` in thousand)


2011-12

B. Net Cash Flow from Investing Activities

2010-11
(1230006)

k{h Miv xEn |

Cash Flow form Financing activities


=v /Borrowings
=v { |nk V /Interest Paid on Borrowings
(E i) / Dividends (including tax)

i E E V /

Issue of Shares to Govt of India

] II b E xM B n @h

(963435)

21763017
(6177584)
(3320817)

14827023
(4939008)
(2874392)

4594050

6700000

0
0

0
0

Issue of Tier II Bonds & Perpetual Debt


Mh @h E vx / Redemption of Sub Debt

M k{h Miv Vi x xEn


C. Net cash generated from Financing Activities

16858666

13713623

Total Cash Flow during the year (A+B+C)

29978330

18591508

E nx E xEn | (fU+F+d)

P E + xEn + xEn i
D. Cash & Cash equivalent at the beginning of the year

i W E E vtm xEn il
Cash & Balances with RBI

79009281

71837784

31264477
110273758

19844466
91682250

87124452

79009281

53127636
140252088

31264477
110273758

E + M il +{ Sx { n vx
Balances with Banks and Money at Call and
Short Notice
E /Total

R E +i xEn + xEn i
E. Cash and cash equivalent at the end of the year

i W E E { xEn +
Cash and Balances with RBI

E + M il +{ Sx { n vx
Balances with Banks and Money at Call
and Short Notice
E /Total

E nx E xEn | (R-P) /
Total Cash Flow during the year (E-D)
xnE / Directors:
b E Cx / Dr. Shashank Saksena
B =nMi / Sri A Udgata
V B Sin /Sri Rajesh M Chaturvedi
M n / Sri Gour Das
x E / Sri Nirmal Kumar Bari
n xh /Sri Deveshwar Narain Singh
b n{ Sv / Dr. Sudip Chaudhuri
+E V / Sri Ashok Vij

29978330

V. {. n+
+vI B |v xnE
J. P. DUA
Chairman & Managing
Director

B. +. xE

]. +. S

E{E xnE

E{E xnE

(M. R. NAYAK)
Executive Director

(T. R. CHAWLA )
Executive Director

B.. ^S

+. E.

|vE (k B J)
B+ B +x{x +vE

E |vE (k B J)
(R. K. MEHRA)
Assistant General Manager (F& A)

A. B. Bhattacharjee
General Manager (F & A)
CFO & Compliance Officer

il E {] E +x / As per our report of even date


Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


JE / Chartered Accountants
B.+. ./F.R. No:313085 E

xn

xn

(n{ E +O)

For M. R. Narain & Co.


JE / Chartered Accountants
B.+. ./F.R. No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

Ei E. B. +O Bb E.

Ei B. . Vx Bb E.

xn

For K. M. Agarwal & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 0853 N

xn

ni

For M. C. Jain & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 304012 E

(E E {])

(. {. )

lx / Place: EEi / Kolkata


nxE / Date: 5th May, 2012

18591508

(Mukesh Kumar Patawari)


{]x /Partner
ni ./ Membership No.-056623

(C. P. Mishra)
{]x /Partner
./ Membership No.-073009

85

Ei B P Bb E.
For S. Ghose & Co.

xn JE /Chartered Accountants
B.+. ./F.R. No: 302184 E
(Sxnx S]]{v) (Chandan Chattopadhay)
{]x / Partner
ni ./ Membership No.-51254
Ei Bx.E. M Bb E.
For N. K. Bhargava & Co.
xn JE /Chartered Accountants
B.+. ./ FR No: 000429N

(Bx.E. M)

ni

(N. K. Bhargava)
{]x /Partner
./ Membership No.-080624

+xS

SCHEDULE

lli

As on
31.03.2012
(` V )
(` in thousand)

lli

As on
31.03.2011
(` V )
(` in thousand)

+xS 1 - {V
SCHEDULE - 1 CAPITAL

|vEi {V /AUTHORISED CAPITAL


|iE

` 10/- E 3,00,00,00,000 <C]


300,00,00,000 Equity Shares of `10/- each

30,000,000

30,000,000

2,762,154

2,762,154

2,238,108

2,000,000

5,000,262

4,762,154

19,873,871

16,273,871

4,700,000

3,600,000

24,573,871

19,873,871

8,642,408

8,686,888

NIL

NIL

NIL

NIL

xMi, +nk B |nk {V

ISSUED, SUBSCRIBED & PAID UP CAPITAL

fuU mhfUth tht "trh; gufU ` 10/fuU 27,62,1,5,418 <C]


27,62,15,418 Equity Shares of `10/- each
held by Central Government

sl;t YJk yg tht "trh; gufU


22,38,10,771<C]

10/- fu

22,38,10,771 Equity Shares of `10/- each


held by Public & Others
E /Total :

+xS 2 - |Ii + +v

SCHEDULE - 2 RESERVES & SURPLUS


I.
i)
ii)
II.
A)
i)
ii)
iii)
iv)
B)

vE |Ii/Statutory Reserves

+l / Opening Balance
E nx {vx / Additions during the year
E / Total :
{V |Ii / Capital Reserves
{xEx |Ii / Revaluation Reserves
+l / Opening Balance
E nx {vx/Addition during the year
E nx E]i /Deduction during the year
B x J +ih /Transfer to Profit & Loss Account
E /Total :
l +i E G |Ii

(42,372)

(44,480)

8,600,036

8,642,408

103,251

103,251

Reserve out of sale of Fixed Assets


i)
ii)
iii)
C)
i)
ii)

+l / Opening Balance
E nx {vx / Addition during the year
E nx E]i / Deduction during the year
E /Total :
+x /Others
+l / Opening Balance
B x Ji +ih /
Transfer from Profit & Loss Account

E /Total :
E /Total (A+B+C)
86

NIL

NIL

NIL

NIL

103,251

103,251

3,409,453

3,409,453

116,494

NIL

3,525,947

3,409,453

12,229,234

12,155,112

lli

As on
31.03.2012
(` V )
(` in thousand)

III.

V B +x |Ii

i)
ii)
iii)

IV.

+l / Opening Balance
E nx {vx / Addition during the year
E nx E]i / Deduction during the year
E /Total :
|Ii / Special Reserve

V.
i)

Foreign Currency Translation Reserve


+l / Opening Balance

ii)

ii)
iii)

VI.
i)
ii)
iii)

VII.
i)
ii)

VIII.

As on
31.03.2011
(` V )
(` in thousand)

/ Revenue & Other Reserves

+l /Opening Balance
E nx {vx / Additions during the year
E /Total
n p {ix |Ii /

i)

lli

E nx {vx /Additon during the year


E nx E]i / Vx/ Deduction/Adj. during the year
E /Total:
+< + B |Ii / I R S RESERVE
+l / Opening Balance
E nx {vx / Additions during the year
E nx E]i / Deduction during the year
E /Total :
| / Share Premium
+l / Opening Balance
E nx {vx /Additions during the year
E /Total :
B x Ji /

29,032,478

25,032,478

7,500,000

4,000,000

NIL

NIL

36,532,478

29,032,478

4,710,000

1,150,000

2,090,000

3,560,000

6,800,000

4,710,000

(147,678)

(126,265)

259,567

NIL

NIL

(21,413)

111,889

(147,678)

19,063

80,865

NIL

NIL

NIL

(61,802)

19,063

19,063

13,604,846

7,200,000

4,355,942

6,404,846

17,960,788

13,604,846

Balance in Profit & Loss Account

1,838,545

1,064,020

/Total : (I+II+III+IV+V+VI+VII+VIII)

100,065,868

80,311,712

87

As on
31.03.2012
(` V )
(` in thousand)

lli

As on
31.03.2011
(` V )
(` in thousand)

lli

+xS 3 - xI{
SCHEDULE - 3 DEPOSITS
I.
i)
ii)

M xI{ / Demand Deposits


E /From Banks
+x /From Others

E /Total :
Si E xI{ /Savings Bank Deposits
n xI{ / Term Deposits
E k / From Banks
ii) +x / From Others
E /Total :

II.
III.
i)

341,696
95,035,034
95,376,730
391,300,103

479,031
91,081,202
91,560,233
350,004,265

14,683,777

8,128,535

1,094,570,194
1,109,253,971

869,178,570
877,307,105

E /Total :(I+II+III)
i li J+ E xI{ /

1,595,930,804

1,318,871,603

i)

Deposits of branches in India

1,589,887,071

1,315,059,908

ii)

i E li J+ E xI{ /
6,043,733
1,595,930,804

3,811,695
1,318,871,603

NIL

2,500,000

119,323

3,121,641

2,961,074

1,315,113

3,000,000

3,000,000

Upper Tier II Capital

10,000,000

10,000,000

Mh @h-] II {V / Subordinated Debt - Tier II Capital


E /Total :
i E =v / Borrowings outside India

26,119,000

26,119,000

42,199,397

46,055,754

48,745,394

23,126,020

90,944,791

69,181,774

NIL

NIL

Deposits of branches outside India

E /Total :

+xS 4 - =v
SCHEDULE - 4 BORROWINGS
I.
i)
ii)
iii)
IV)

i =v / Borrowings in India
i W E / Reserve Bank of India
+x E / Other Banks
+x lB B +Eh / Other Institutions and Agencies
xx n @h Ji /
Innovative Perpetual Debt Instrument.

V)

VI)

II.

+{ ] II {V

E /Total :(I+II)
={H I + II i |ii =v
Secured borrowings included in I & II above

88

As on
31.03.2012
(` V )
(` in thousand)

lli

As on
31.03.2011
(` V )
(` in thousand)

lli

+xS 5 - +x niB B |vx


SCHEDULE - 5 OTHER LIABILITIES AND PROVISIONS

/Bills Payable
II. +i E Vx (x) / Inter Office Adjustment (Net)
III. ={Si V / Interest Accrued
IV +lMi E niB /Deferred Tax Liabilities
V. +x (|vx i) /Others (including provisions)
E /Total :
I. n

2,900,509

3,871,215

584,197

2,426,895

3,544,559

5,459,648

575,183

758,635

29,799,505

27,219,973

37,403,953

39,736,366

+xS 6 - i W E xEn +
SCHEDULE - 6 CASH AND BALANCES WITH RESERVE BANK OF INDIA
I. E
c

/ Cash in hand
(n E x] i) (including foreign currency notes)
II. i W E //Balances with Reserve Bank of India
-S Ji / - in Current Account
- +x Ji / - in Other Accounts
E /Total :

3,910,347

3,567,098

83,214,105

75,442,183

NIL

NIL

87,124,452

79,009,281

+xS 7 - E + M il +{ Sx { n vx
SCHEDULE - 7 BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
I.
i.

ii.

II.
i.

ii.

i / In India
E / Balances with Banks
a) S Ji / in Current Accounts
b) +x V Ji / in Other Deposit Accounts
M il +{ Sx { n vx /

727,017

2,491,628

4,063,180

1,849,666

Money at Call and Short Notice


a) E / with Banks

16,250,000

9,422,961

b) +x

11,991,955

2,400,000

33,032,152

16,164,255

6,868,005

8,232,612

NIL

NIL

13,227,479

6,867,610

NIL
20,095,484

NIL
15,100,222

53,127,636

31,264,477

l+ / with Other Institutions

E / Total : ( i + ii )
i E / Outside India
E / Balances with Banks
a) S Ji / in Current Accounts
b) +x V Ji / in Other Deposit Accounts
M il +{ Sx { =ug vx /
Money at Call and Short Notice
a) E / With Banks
b) +x l+ / With Other Institutions
E /Total : ( i + ii )
E /Total :(I+II)

89

lli

As on
31.03.2012
(` V )
(` in thousand)

lli

As on
31.03.2011
(` V )
(` in thousand)

+xS 8 - xvx
SCHEDULE - 8 INVESTMENTS
i xvx / Investments in India in
I.
i. E |ii / Government Securities
ii. +x +xni |ii / Other Approved Securities
iii. /Shares
iv. bS + v {j /Debentures & Bonds
v. +xM il/+l H ={G xvx
Investments in Subsidiaries and / or
Joint Ventures
vi. +x (S+ b, ]+< +n) /
Others ( Mutual Funds, UTI etc. )
E /Total :

452,119,668
699,770
3,956,678
35,281,356

351,035,281
1,188,444
4,400,236
23,633,139

1,772,204

1,172,204

49,002,688
542,832,364

51,041,339
432,470,643

547,701,484
4,869,120
542,832,364
NIL
542,832,364

435,448,420
2,977,777
432,470,643
NIL
432,470,643

28,134,599

40,543,460

514,714,979
568,601,409
1,111,450,987

405,139,660
490,565,764
936,248,884

945,796,253

776,889,624

Covered by Bank/Government Guarantees


48,407,731
iii) +|ii /Unsecured
117,247,003
E /Total :
1,111,450,987
C) I. i +O / Advances in India
i. |lEi Ij / Priority Sector
373,964,300
ii. VxE Ij /Public Sector
167,728,595
iii. E / Banks
NIL
522,532,307
iv. +x /Others
E / Total :
1,064,225,202
II. i +O / Advances outside India
a) cikfU mu =ug / Due from Bank
32,209,668
b) yg mu =ug /Due from others
i) G EB MB B xB MB /Bills Purchased & Discounted
766,492
12,850,116
ii) E @h / Syndicated Loan
1,399,509
iii) +x /Others
E / Total :
47,225,785
E / Total :(CI+CII)
1,111,450,987

34,514,447
124,844,813
936,248,884

E xvx / Gross Investments


P]B +I i |vx /Less: Provision for Depreciation
x xvx /Net Investments
III. i E xvx /Investments Outside India
E /Total :(I+III)
II.

+xS 9 - +O
SCHEDULE - 9 ADVANCES
A) i.
ii.

G E MB B xB MB / Bills purchased and discounted


xEn @h, +b}] + M { |in @h /

Cash credits, Overdrafts and


loans repayable on demand
iii. n @h /Term Loans
E /Total :
B) i) i +i u |ii

( @h { +O i)

Secured by tangible assets


(includes advances against book debts)
ii)

E/E |ii u Ii

90

307,637,300
147,866,409
NIL
451,715,340
907,219,049
19,791,067
699,816
7,498,680
1,040,272
29,029,835
936,248,884

As on
31.03.2012
(` V )
(` in thousand)

lli

As on
31.03.2011
(` V )
(` in thousand)

lli

+xS 10 - l +i
SCHEDULE - 10 FIXED ASSETS
I.

/
Premises (including Revalued Premises)

i.

vqJJo ;eo JMo fuU 31 S E li fuU ylwmth Mi/


{x Ei {

{ ({xEi { i)

At cost / Revalued amount as on 31st March


of the preceding year
ii.
iii.
iv.

E n x {x Ei / Revalued during the year


E n x {vx /Additions during the year
E n x E] i / Vx /
Deductions/ Adjustment during the year

{U vi Vx/Adjustment Related to previous year


vi. E il E /Depreciation to date on book value
vii. {x x il E /Depreciation to date on revaluation
viii. xhvx {/Premises under Construction
E / Total
II. +x l +i (xS + CS i)

v.

9,991,361

9,983,214

NIL

NIL

296,436

8,147

NIL

NIL

(128)

NIL

310,109

279,866

481,652

439,280

216,255

NIL

9,712,163

9,272,215

7,460,990

6,505,701

809,568
90,730

968,036
11,717

Other Fixed Assets (including Furniture & Fixtures)


i.

vqJJo ;eo JMo fuU 31 btao fUe r:r; fuU ylwmth ttd; vh
At cost as on 31st March of the preceding year

ii.
iii.

E n x {vx /Additions during the year


E n x E]i /Deductions during the year
iv. Mi vi Vx /Adjustment Related to previous year
v. il E /Depreciation to date
E

/Total:

/Total :(I+II)

(1,395)

(1,030)

5,913,286

5,250,920

2,265,147

2,210,070

11,977,310

11,482,285

NIL
10,857,079

NIL
7,064,690

5,512,990

3,792,894

109,726

97,089

+xS 11 - +x +i
SCHEDULE - 11 OTHER ASSETS
i.
ii.
iii.

+i E Vx (x) /Inter Office Adjustment (Net)


={Si V / Interest Accrued
+O { nk E/i { E] M E (x)
Tax paid in advance/tax
deducted at source (net)

iv.

Jx O B ]{ / Stationery and Stamps

v.

n E i] |{i E M< M-EE +i


Non-banking assets acquired
in satisfaction of claims

vi.

yg (rJrJ" nxn YJk Wak;) / Others (Sundries and Suspense)


E /Total :

91

NIL

NIL

6,353,134

11,433,366

22,832,929

22,388,039

lli

As on
31.03.2012
(` V )
(` in thousand)

lli

As on
31.03.2011
(` V )
(` in thousand)

+xS 12 - +EE niB


SCHEDULE - 12 CONTINGENT LIABILITIES
I.

E E r n Vx @h E { E x E M
(+{vx ni +E M i)
Claims against the bank, not acknowledged as debts

12,291,127

26,550,516

1,600

1,600

458,576,841

399,085,554

72,041,596

40,947,122

8,661,999

4,205,493

60,661,377

92,736,153

1,104,615

418,419

613,339,155

563,944,857

(including disputed Income Tax demands under appeals)


II.
III.

+i: nk x E B ni/Liability for partly paid investments


E n x n+ E Eh ni/
Liability on account of outstanding
forward exchange contracts

IV.

P]E E + n M< |ii


Guarantees given on behalf of constituents

i / - In India
(ii) i E /-Outside India
|iOh, {`Ex + +x viB/Acceptances, endorsements
(i)

V.

and other obligations


VI.

+x n VxE B E +EE { Vn
Other items for which the Bank is
contingently liable

/ Total :

+xS 13 - +Vi V
SCHEDULE 13 - INTEREST EARNED
I)
II)
III)

+O/ { V/]] /Interest/discount on advances / bills


x { + /Income on investments
i W E + +x +i E
xv { V
Interest on balances with Reserve Bank of
India and other inter-bank funds

IV)

+x / Others
E /Total :

92

116,641,289

82,741,766

37,163,763

26,702,663

1,228,902

546,852

198,822

155,636

155,232,776

110,146,917

{i / Year Ended
31.03.2012
(` V )
(` in thousand)

{i / Year Ended
31.03.2011

(` V )

(` in thousand)

+xS 14 - +x +
SCHEDULE 14 - OTHER INCOME
I)
II)

Ex, x + n /Commission, exchange & brokerage


x E G |{i (x)/Profit on sale of investments
P]B& x E {xx { x
Less: Loss on Revaluation of Investment

III)

8,380,146

7,837,422

1,228,878

1,614,772

(96,736)

(12,382)

997

375

(611)

(425)

2,896,146

843,009

(1,749,425)

(112,794)

75,042

101,897

, x il +x +i E G {
Profit on Sale of Land, Building and Other Assets

P]B& , x il +x +i E G { x
Less: Loss on sale of Land, Building and Other Assets
IV)

x xnx {
Profit on exchange transactions

P]B& x xnx { x
Less : Loss on exchange transaction
V)

i +xM /E{x il / +l H ={G <in


<in E { +Vi +
Income earned by way of dividends etc. from Subsidiaries/
companies and / or joint ventures etc. in India.

VI)

v + /Miscellaneous Income
E / Total :

2,252,355

3,432,253

12,986,792

13,704,127

97,428,717

64,983,234

1,595,752

482,128

4,581,832

4,456,880

103,606,301

69,922,242

+xS 15 - E M V
SCHEDULE 15 - INTEREST EXPENDED
I)
II)

V { V / Interest on deposits
i W E/+i-E =v { V
Interest on RBI/Inter bank borrowings

III)

+x / Others
E / Total :

93

{i / Year Ended

{i / Year Ended

31.03.2012
(` V )
(` in thousand)

(` V )

(` in thousand)

18,344,859

15,576,240

2,314,468

2,018,006

31.03.2011

+xS 16 - {Sx
SCHEDULE 16 - OPERATING EXPENSES
I)

ES E Mix il =xE B |vx


Payments to and provisions for employees

II)

c, E B x /Rent, Taxes and Lighting

III)

ph + Jx O / Printing and stationery

234,546

220,040

IV)

Y{x + |S /Advertisement and publicity

273,553

358,247

V)

E E {k { +I /Depreciation on Banks property

734,980

663,897

VI)

xnE E , k + /
10,402

11,975

176,469

179,098

Directors fees, allowances and expenses


VII)

J{IE E +
(J J{IE i)
Auditors fees and expenses
(including branch auditors)

VIII)

v | /Law charges

200,560

135,818

IX)

bE, i, ]x +n /Postages,Telegrams,Telephones etc

193,808

244,822

X)

i + +xIh / Repairs and maintenance

547,398

412,818

XI)

/ Insurance

1,254,146

999,084

XII)

+x /Other expenditure

2,628,698

2,562,976

26,913,887

23,383,021

E / Total :

94

+xS - 17 i{h J xi
1. J E +v :
(i) k ht fUtu, V +xl =Ji x , J E
{{Mi Mi {{] B ={Si +v { il vE
|vx B xi: E J ri E +x{ x
M *
(ii)

Schedule 17 - SIGNIFICANT ACCOUNTING POLICIES


1.

(i) The financial statements have been prepared under the


historical cost convention and accrual basis of accounting,
unless otherwise stated and are in conformity with the
statutory provisions and generally accepted accounting
principles.

k h i V E (..E) u + +Yx,
+i MEh, |vxEh il +x vi {
- { V EB MB Mn xn E +x{ *
i xn JE lx u V J xE B
=nPh il i E EM =tM |Si J {ri*

(ii) The financial statements also conform to the guidelines


issued by the Reserve Bank of India (RBI) from time to
time in respect of income recognition, asset classification,
provisioning and other related matters. Accounting
Standard and pronouncements issued by the Institute of
Chartered Accountants of India and accounting practices
prevalent in the banking industry in India.

2. n p v xnx :
2.1 i E J+/E i :
i)

2.

Transactions involving Foreign Exchange:

2.1 Branches / Offices outside India

n J+ E xx-<]O x +{x E {
MEi E M il =xE k h E xxx
|ni E M :
(E) pE B M-pE +i B niB il +EE
niB x BCSV b BBx + <b (b<)
u |iE i E {i { n Vx +i {] n
{*
(J) V n b< u vi i E {i { +vSi
i +i +i n { {ii E Vi *

(i) Foreign Branches are classified as Non-integral Foreign


Operations and their financial statements are translated
as follows:
a) Both monetary and non-monetary Assets and
Liabilities as well as Contingent Liabilities at the
closing spot rates notified by the Foreign Exchange
Dealers Association of India (FEDAI) at the end of
each quarter.
b) Revenue items are translated at the quarterly average
closing rate notified by FEDAI at the end of respective
quarter.

(M) {h x +i E BE +M Ji n p
]x W J Vi *
(ii)

Basis of Accounting:

c)

n li |ixv E E {Sx E <]O x


+{x E { MEi E M il =xE k
h E Mhx xxx E Vi :
(E) pE +i B niB, M], Ei, {Ex
il +x |iriB b< E nxnx |iE i E
+i |Si {] x n { i { +E Vi *

All resulting exchange difference is accumulated in


a separate account Foreign Currency Translation
Reserve.

(ii) Operations of representative offices abroad are classified


as Integral Foreign Operations and their financial
statements are accounted for as follows:
a) All monetary Assets and Liabilities, Guarantees,
Acceptances, Endorsements and other obligations
are translated to Indian rupee equivalent at the spot
exchange rates prevailing at the end of each quarter
as per FEDAI guidelines.

(J) M-pE n xnx E il { |Si x n {


+E Vi *
(M) V n E Mhx xnx E il { |Si x
n { E Vi *
(P) {h x +i E -x Ji M *

b) Non-monetary items are translated at exchange rate


prevailing on the date of transaction.
c) Revenue items are accounted for at the exchange
rates prevailing on the date of transaction.
d) All resulting exchange differences are accounted for
in Profit & Loss Account.

+O E i E |Si h E +iMi MEi


E VBM* +O E v |vx lx v +{I+
+l ..E E xE, V +vE , E +x E Vi *
2.2 i J+ i
(i) n p +i +l niB (BBx+
Vx, <<B Vx, +B Vx <in E +iMi O

(iii) Advances are classified under categories in line with


those of Indian Offices. Provisions in respect of advances
are made as per the local law requirements or as per
the norms of RBI, whichever is higher.

(iii)

2.2

Branches in India

(i) Foreign currency balances whether of assets or liabilities


[including deposits mobilized under FCNR Scheme,

95

E M< V i) + E n x n+ E
i E +i i n p { P (b<) u lSi
n { {ii E Vi *

EEFC Scheme, RFC Scheme etc.] and outstanding


forward exchange contracts are converted at quarter end
rates as advised by Foreign Exchange Dealers
Association of India (FEDAI).
The resultant profit/loss on revaluation of forward exchange
contracts and NOSTRO accounts is taken to revenue as per
FEDAI guidelines.

b< E nxnx n x E E {xx Vxi


/x il x] Ji E V E +iMi n Vi *
(ii)

n p vi + il n E xnx E nx M
x n { {ii E Vi *

(ii) Income and Expenditure items relating to foreign currency


are converted using the exchange rate prevailing as on
the date of transaction.
(iii) Acceptances, endorsements and other obligations
including guarantees are stated at FEDAI advised rates
prevailing at the end of each quarter.
3. Investments:

M] i Ei, {`Ex + +x ni E
|iE i E +i b< u Si |Si V n {
+E Vi *
3. x :
(i) x E i V E E nxn E +x ix |M
l {{Ci iE vi, { i vi il G i
={v MEi E Vi *
(ii) x E |E]Eh E xxJi U MEi E
Vi :
(E) E |ii,
(J) +x +xni |ii,
(M) ,
(P) bS B b,
(R) +xM lB/H =t il
(S) +x
(iii) (E) x V E {{Ci iE vi Ex Si , E
{{Ci iE vi E { MEi E Vi *
(iii)

(i) Investments are classified in accordance with RBI


guidelines under three categories viz. Held to Maturity,
Held for Trading and Available for Sale.
(ii) The disclosures of Investments are further classified
into the following six groups :
a) Government Securities,
b) Other Approved Securities,
c) Shares,
d) Debentures & Bonds,
e) Subsidiaries/ Joint Ventures and
f) Others
(iii) a) Investments that the Bank intends to hold till maturity
are classified as Held to Maturity.

(J) x V G E il 90 nx i riE {
{xG i vi E Vi , E { i vi E { MEi
E Vi *
(M) x V =Ci nx h MEi x , E G i ={v
E { MEi E Vi *
(P) x E G E = {{Ci iE vi, i vi
+l G E B ={v E { MEi E Vi B h
ii{Si }]M xE nxn E +x{ E Vi *

b) Investments that are held principally for resale within


90 days from the date of purchase are classified as
Held for Trading.
c) Investments, which are not classified in the above
two categories, are classified as Available for sale.
d) An investment is classified as Held to Maturity, Held
for Trading or Available for sale at the time of its
purchase and subsequent shifting amongst
categories is done in conformity with regulatory
guidelines.
e) Investments in subsidiaries, joint ventures and
associates are classified as Held to Maturity.

(R) +xME, Ci =t il M l x E {{Ci


i vi E { MEi E Vi *
(iv) {{Ci iE vi (Ij Oh E <i) E {
MEi x |{i Mi { B Vi * n |{i Mi +Ei
+vE i +iH E {{Ci E +v i
{vi E Vi + <E B xxx |vx E Vi
:
(E) +O E B |V i V E E +i MEh B
|vx E E{h xnb E M Ei B +O { E bS/
b E +I*

(iv) Investments classified as Held to Maturity (other than


in Regional Rural Banks) are carried at acquisition cost. In
case the acquisition cost is higher than the face value, the
excess is amortized over the period remaining to maturity
and provision is made for:

(J) +xM l+/H =t x E , +l E


+*
96

a)

Depreciation in the value of debentures / bonds which


are deemed to be in the nature of advances by applying
the RBI prudential norms of asset classification and
provisioning applicable to advances.

b)

Diminution, other than temporary, in the value of


investments in subsidiaries / joint ventures.

{ i vi { MEi x E G{- E
+i { {xEi E Vi il {h x E
+Yi E Vi , n r , i = |iE MEh E +iMi
+xnJ E Vi * BE G{ E >{ iB +x
{xx E l {ix x E Vi >
(vi) G i ={v E { JdeoEi x E i +i
{ V G{- Sxi E Vi il {h x +I
E +Yi E Vi + n r , i = |iE MEh E
+iMi +xnJ E Vi * BE G{ E >{ iB B
{xx E l {ix x E Vi >

(v)

(v)

(vii)

(vi) Investments classified as Available for Sale are marked


to market scrip-wise at quarterly intervals and resultant
net depreciation is recognized and net appreciation,if
any, is ignored under each classification. The book value
of the individual scrip is not changed with the revaluation
as indicated above.

Ij Oh E x E hFtJ ttd; { Ei E Vi

(vii) Investments in Regional Rural Banks are valued at


carrying cost.

+x{V |ii (V V/vx 90 nx +vE E


+v E ) E + +Yi x E Vi il
+i MEh E E{h xnhb +{xi B |ii E
+I i Si |vx E Vi + B +I E +x
x{nE |ii r E n ]-+ x E Vi *

(viii) In respect of non-performing securities (where interest/


principal is in arrears for more than 90 days) income is
not recognized and appropriate provision is made for
depreciation in the value of the securities by applying
prudential norms of asset classification and such
depreciation is not set-off against the appreciation in
respect of other performing securities.

(viii)

(ix)

(x)

(xi)

Investments classified as Held for Trading are revalued


scrip-wise at monthly interval and resultant net
depreciation is recognized and net appreciation, if any,
is ignored under each classification. The book value of
the individual scrip is not changed with the revaluation
as indicated above.

x E |{i E Mi :
G< E M< |ii E |ix il Ex
+ ]-Bb E E x * Ex, n, |ii x-nx
E il ]{ b] x *

(ix) Cost of acquisition of investments:


is net of incentives/commission and front-end fees
received in case of securities subscribed, and excludes
commission, brokerage, securities transaction tax and
stamp duty.

x E G |{i /x E B x J
+Yi E Vi * {{Ci iE vi MEh x
E G |{i E i E { B x
J Vi ii{Si < vq k s e +Ii Ji
xVi E Vi *
x E V E xvh i ]E BCSV E]x
B+<BBbB/{bB+< u |ii n E +{x Vi *
B E] x/n E + V E xvh B+<BBbB/
{bB+< +l i V E u xvi xnb E +x
Si {{Ci |i n { E Vi *

(x)

Profit/loss on sale of investments is recognized in the


Profit and Loss Account. An amount equivalent to the
profit on sale of investments under Held to Maturity
category is first taken to the Profit and Loss Account and
thereafter, appropriated to the Capital Reserve Account.

(xi) For the purpose of determining market value of


investments, Stock exchange quotations or rates put up
by FIMMDA/PDAI are adopted. In absence of such
quotations/rates, the market value is determined by
applying appropriate Yield to Maturity rates as prescribed
by FIMMDA / PDAI or as per norms laid down by the
Reserve Bank of India.

i V E E nxn E +x z h E Jiv
E x xxx E Vi *
(U) V {
V n {, V V +i + ni+ E S Ei , E
={Si +v { Vi = +i +l ni i xq]
{ E Uc E V k h V { +l Mi V
E { Vi *
{ E xx { x +l x E { E nMi +v
+l +i/ni+ E +v E { +Yi E Vi *

(xii) As per RBI guidelines, the different categories of Swaps


are valued as under:

(V) ] b M {
]bM { xnx E k h nV {ix E l V
Sxi E Vi *

b)

(xii)

a)

Hedge Swaps :

Interest rate swaps which hedges interest bearing assets or


liabilities are accounted for on accrual basis except the Swaps
designated with an assets or liability that is carried at market
value or lower of cost or market value in the financial
statements.
Gains or Losses on the termination of Swaps are recognized
over the shorter of the remaining contractual life of the Swap
or the remaining life of the assets / liabilities.
Trading Swaps :

Trading Swap transactions are marked to market with


changes recorded in the financial statements.

97

4. +O
(i) +O i V E u xvi nxn E +x{ ={V
B +x{V +O MEi EB Vi il +x{V +O
i |vx E x E { nB Vi *
il{, i V E E nxn E +x xE +O
(={V) i EB MB |vx E +x niB B |vx E
ii E Vi *
5 . l +i +
(i) Ei{ { E +, Vx =xE {xEi n
M , +x { + +x l +i E =xE {i
Mi { n Vi *
(ii) xh +v E nx EB MB {VMi E +x +i E
+iMi E Vi *
(iii) +I E |vx, BB{B B E{] E UcE, V
i V E E nxn E +x{ v {ri 33.33%
E n yJGg E |vx , E{x +vx, 1956 E
+xS XIV xvi n { x {ri E +v {
E Vi *
(iv) {xEi +i E v {xEx E { +iH
+I E E +Ii {V x J +ii
E Vi *

4.

Advances:

(i)

Advances are classified as performing and nonperforming as per guidelines prescribed by RBI and are
shown net of provisions for non-performing advances.

(ii)

The provision made for standard advances (performing)


in terms of RBI guidelines is however included in Other
Liabilities and Provisions.

5.

Fixed Assets and Depreciation:

(i)

Premises including Freehold and other Fixed Assets


are stated at historical cost except certain premises,
which are stated at their revalued amount.

(ii)

Capital expenditure incurred during construction period


is included under Other Assets.

(ii)

(iii) Depreciation is provided on diminishing balance method


at the rates and the manner prescribed in Schedule XIV
of the Companies Act, 1956 except that in respect of
ALPMs and Computers, where depreciation is provided
on straight line method @ 33.33% as per guidelines of
Reserve Bank of India
(iv) In respect of revalued assets, the amount of additional
depreciation consequent to revaluation is transferred
from Revaluation Reserve to the Profit & Loss Account.
(v)

Vb { | E V E +v E nx {vi
E Vi *
(vi) n J+ E l +i { +I E Mhx = n
|Si Exx E +x E Vi *
6 . + i +i (E { ] } ] )
(i) E{] i }], V ] }] E x E{]
{Si x Ei, r b E +z M , il
+S +i x Vi * V }] b E +z +M
x E{] }] E +i +i x Vi *
(ii) b |{i E{] }] E i +i +i x VM
V }] E /Mi . 10.00 J +vE * <
|E E +i +i =xE G +v E nx +vEi
10 E +v iE {vi E Vi *
7. ES :
(i) E x ES E v +{x ni+ E xi i
i xn JE lx u V J xE 15(vi)ES M E *
(ii) nPv {i ES E |i ni E xvh xS
=Ji xi E +x E +i ij EE u
{Vi <E< |h E |M Ei B EE Ex
u E Vi *
E. OS]
E lli OS] Mix +vx, 1972/ {S]/ xx
E |vx E v +{x ES E xk +l i
(v)

Premium on leasehold land is amortized over the period


of the lease.

(vi) Depreciation on Fixed Assets of foreign branches is


provided as per the applicable laws prevalent in that
country.
6.

Intangible Assets (Computer Software) :

(i)

Software for a computer that cannot operate without that


specific software is an integral part of related hardware
and is treated as fixed assets. Where the software is not
an integral part of the related hardware, computer
software is recognised as an Intangible Asset.

(ii)

Computer software acquired from vendors is recognised


as Intangible Asset only if the value /cost of the software
is more than Rs.10 Lakhs. Such intangible assets are
amortised over its effective life subject to a maximum
period of ten years.

7.

Employee Benefits:

(i)

The Bank has applied Accounting Standard 15(Revised)


- Employees Benefits, issued by the Institute of Chartered
Accountants of India, for recognition of its liabilities in
respect of employee benefits.

(ii)

Liability towards long term defined employee benefits


is determined based on actuarial valuation by
independent actuaries at the year-end by using Projected
Unit Credit method as per policies mentioned herein
below:

a.

Gratuity:

The Bank pays gratuity in case of retirement or death or


resignation or termination etc. of its employees, having regard

98

+l {i +n E OS] E Mix Ei *
OS] E Mix i E E +nx Vi xv E JJ
+iE ]] u E Vi * E < xv +{x +nx
OS] E v +{x ni E EE bqgl E +v { Ei *

to the provisions of Payment of gratuity Act, 1972 / Service


Awards / Service Regulations, as the case may be. A fund
created out of Banks contribution is maintained by an inhouse Trust for payment of gratuity. The Bank makes
contribution to this fund on the basis of actuarial valuation of
its liability.

J. {x (B+{+):

b.

<n E (ES) {x xx, 1995 (B+{+) E


+iMi E =x ES E {x E Mix Ei Vxx <
xx E +iMi {x E E{ n + =x ES E
V E 29.09.1995 31.3.2010 E +v E nx +B
* < Vx ix + +E E +v {, xk/i,
V , E li <x ES E E +v {
{x nx E |vx * B<{+-1995 E +iMi ES
xv E E +nx E {j x * {x E Mix i E
E +nx Vi xv E JJ +iE ]] u E Vi
* E < xv +{x +nx {x E v +{x ni E
EE x E +v { Ei V E +xni EE
u E Vi *

The Bank pays pension under Allahabad Bank (Employees)


Pension Regulations, 1995(ABEPR) to employees, who
exercised option under the Regulations and also to
Employees joining the Bank Service during the period from
29/09/1995 to 31.03.2010. The plan provides for a pension /
family pension on monthly basis in respect of these
employees on their retirement / death, as the case may be,
based on the salary and qualifying service of the respective
employees. Employees covered under ABEPR 1995 are
not eligible for Banks contribution to Provident Fund. A fund
created out of Banks contribution is maintained by an inhouse Trust for payment of Pension. The bank makes
contributions to this Fund on the basis of actuarial valuation
of its liability in respect of Pension, which is conducted by
approved Actuary .

M. +E E i (BB)
v ES E |nx E Vi + < =tM
Zi/+b E +x - { lvi x E
+x Vx E +iMi l{i vi ES E { E
n E v EB MB j E |i{i * M
xvE Vx + E +{x Vx E +iMi +E E
i ni E v |vx EE x E +v { Ei
* x |iE i E +xni EE u E
Vi * BB vi Mix E E -x Ji E
Vi *
P. +E xEnEh

c.

Pension (ABRPR):

Leave Fare Concession (LFC):

This facility is granted to the employees and extends to


reimbursement of travelling expenses incurred for the family
members of the employee concerned, as defined under the
Scheme, in terms of service rules as amended from time to
time as per Industry wide Settlements / Awards. It is a nonfunded scheme and the Bank maintains a provision on
account of it s liability in respect of Leave Fare Concession
under the Scheme on the basis of actuarial valuation, which
is conducted by approved Actuary. Payment in respect of LFC
facility is made through the Profit and Loss Account.
d.

E BB v E ={M Ex ES E E S
E E +vEi 30 nx E vE +E E xEnEh
E +xi |nx Ei * xk +l i x { ES E
Ji V vE +E, +vEi 240 nx fuU xEnEh E
+xi n Vi * ES u iM{j nx E
xEnEh E vE +E E 50% + +vEi 120
nx iE i * M xvE Vx + E < Vx E
+iMi +E xEnEh ni E v |vx EE x E
+v { Ei x E +xni EE u E Vi
* B +E xEnEh E Mix E E -x Ji E
Vi *

Leave Encashment:

The Bank permits encashment of Privilege Leave balance to


it employees availing LFC facility, up to the maximum limit of
30 days leave in a block of four years of service. Encashment
of privilege leave standing to the credit of an employee is
also permitted in case of retirement or death subject to a
maximum of 240 days. In case of resignation from the service
by an employee, such encashment is restricted to 50% of the
balance of privilege leave subject to a maximum of 120 days.
It is a non-funded scheme and the Bank maintains a provision
on account of its leave encashment liability under the Scheme
on the basis of actuarial valuation, which is conducted by
approved Actuary . Payment of such leave encashment is
made through the Profit and Loss Account.

R. U]]
E E ES u SEi +v { U ]] { S Vx
=i{z E +EEi i +{x ni+ fuU B |vx Ei
V |Si i/x E +x +xY * M xvE
Vx + E <E |vx EE x E +v { Ei

e.

Sick Leave:

The Bank maintains a provision for its liability on account of


any contingency arising out of employees going on sick leave
on medical ground, which is permissible in terms of prevailing
service conditions / rules. It is a non-funded scheme and the

99

V E +xni EE u E Vi *

Bank maintains the provision on the basis of actuarial


valuation, which is conducted by approved Actuary..

CrJg rlr" fuU mkc"k b E +v i xv E M +nx


E { +Yi E Vi + + x Ji
|i E Vi *
(iv) nxE 27.04.2010 E =tM- Zi/Ci x] E +x
nxE 01.04.2010 E +l n E E +B ES
{i +nx xk Vx *
(iii)

(v)

8.

i)

+{v ES E = E x J +]]Ei
E { +Yi E Vi V vi
B |nx E Vi *
+ + E +Yx
xxJi E + +- E ={S +v { E
Vi
+x{V +i E { MEi +O { V il +x
+ E E j iE +xvi E Vi *

+ E E { { V |{i + + V E E Mhx
vi E xvh +vE u +n V EB Vx
E Vi *
9. {]]
E u |{i EB E ={Si +v { -x J +Yi
E Vi *
{Sx {]] { M< +i i {]] E Mix -x
J E { +Yi E Vi *

ii)

10. |i +Vx

(iii) In respect of Provident Fund, the contribution for the


period is recognized as expense and charged to Profit &
Loss account.
(iv) In terms of Industry wide Settlement/Joint Note dated
27.04.2010, employees joining the services of the Bank
on or after 01.04.2010 are covered by defined contribution
retirement benefit scheme.
(v)

Short-term employee benefits are recognized as an


expense at an undiscounted amount in the Profit and
Loss Account of the year in which the related services
are rendered.

8.

Recognition of Income and Expenditure:

Income and Expenditure are accounted for on accrual basis


other than those stated below:
(i)

Interest and Other Income on advances classified as


non-performing assets are recognized to the extent
realized.

(ii)

Income from interest on refund of Income Tax and Interest


Tax are accounted for in the year the order is passed by
the concerned assessing officer.

9.

Lease :

Rentals received by the Bank are recognized in the profit and


loss account on accrual basis.
Lease payments for assets taken on operating lease are
recognized as an expense in the profit and loss account.
10. Earnings Per Share :

|i <C] E + b<]b +Vx E {] i


xn JE lx u V J xE 20 |i +Vx
fUu ylwmth fUe st;e ni> |i <C] E +Vx E Mhx +v
i E <C] E i +i J x + E M
EE E Vi * |i <C] b<]b +Vx E Mhx
<C] E i +i J + E nx E
b<] <C] ht E |M E E Vi *
11. E vx

Basic and Diluted Earnings per Equity Share are reported in


accordance with the Accounting Standard 20 Earnings per
share issued by the Institute of Chartered Accountants of
India. Basic earnings per equity share are computed by
dividing net income by the weighted average number of equity
shares outstanding for the period. Diluted earnings per equity
share are computed using the weighted average number of
equity shares and dilutive potential equity shares outstanding
during the period.
11. Taxation :

(i) E i |vx S (xxi E{E E (]) i) +


+lMi nx E i E Vi * E M + { S
E E |vx, |V E n + E x E |M EE
E Vi * J xE 22 E +x{x : i E xn
JE lx u V ""+ { E i J"",
+i E Eh =i{z +lMi E +i + niB, V
{i +v |iix E M , ix {j E il iE xB
MB n x Vx E x + E n E |M
EE +Yi E Vi * +lMi E +i i iE
+Yi x E Vi V iE E 'i xSi' x

(i) Provision is made for both current tax (including


Minimum Alternative Tax - MAT) and deferred tax. Current tax
is provided on the taxable income using applicable tax rate
and tax laws. In compliance with Accounting Standard
22 "Accounting for Taxes on Income issued by the Institute of
Chartered Accountants of India, deferred Tax Assets and
Liabilities arising on account of timing differences and which
are capable of reversal in subsequent periods are recognised
using the tax rates and the tax laws that have been enacted or
substantively enacted till the date of the Balance Sheet.
Deferred Tax Assets are not recognised unless there is virtual

100

VB E {{i E M + ={v M V +lMi


E +i E VBM*
(ii) xxi E{E E (]) V E +i E { i x
VBM V B {] |h E E{x +-E +vx
1961 E ii xn] +v E +n x E E Mix E
nM*
12. xEn B i xEn
xEn B i xEn l xEn + B]B xEn il
i W E *
13.

14.
(i)

(ii)

E)

J)
i)

ii)

iii)

+S +i ({xEi +i i) { '<{]
+ ' (n E< ) E +Yi E M il
i xn JE lx u V J xE 28
'<{] + ' E +x -x Ji |i
E Vi *
+EE niB il |vx + +EE +i
i xn JE lx u V J xE 29
|vx, '+EE niB B +EE +i' E +x{
E |vx i +Yi Ei V E {U P]x E
{h{ ix ni =i{z i +
E +lE vx E | ni E vx
i +{Ii M + V ni E E x
+xx E V Ei *
xxJi E B |vx +Yi x E Vi :
{U P]x+ =i{z E< i ni + VE
+ii = P]x E x +l x x { x EM
+l E B +xSi P]xB V {hi E E
xjh x *
E< ix ni V {U P]x+ =i{z + =
+Yi x E M CE :
x E +lE vx E |
ni E vx i +{Ii M +l
ni E E x +xx x E V Ei *
B ni E +EE ni+ E { nV E Vi
* <xE xi +i { xvh E Vi +
ni E E = M E B |vx E Vi VE
B +lE vx E | , =x
+ii +vh {li E UcE V ni E
E x +xx x E V Ei *
k h +EE +i E +Yi x E
Vi CE <E {h{ B + E +Yx
Ei V E x V Ei*

certainty that sufficient future taxable income will be available


against which such deferred tax assets will be realised.
(ii) Minimum Alternative Tax (MAT) credit is recognised as
an asset only when and to the extent there is convincing
evidence that the company will pay normal income tax during
the period specified under the Income Tax Act 1961.
12. Cash and Cash equivalents :
Cash and cash equivalent include cash on hand and in ATMs
and balances with RBI.
13. Impairment of Losses (if any) on Fixed Assets (including
revalued assets) are recognized and charged to Profit & Loss
Account in accordance with the Accounting Standard 28
Impaired of Assets issued by The Institute of Chartered
Accountants of India.
14. Contingent Liabilities and Provisions & Contingent
Assets
(i)

In conformity with AS 29. Provisions, Contingent


Liabilities and contingent Assets, issued by the Institute
of Chartered Accounts of India, the Bank recognizes
provisions only when it has a present obligation as a
result of a past event, it is probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation, and when a reliable
estimate of the amount of the obligation can be made.

(ii)

No provision is recognized for :

a)

Any possible obligation that arises from past events


and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Bank; or

b)

Any present obligation that arises from past events but


is not recognized because :

i)

It is not probable that an outflow of resources embodying


economic benefits will be required to settle the obligation;
or

ii)

A reliable estimate of the amount of obligation cannot


be made. Such obligations are recorded as contingent
Liabilities. These are assessed at regular intervals and
only that part of the obligation for which an outflow of
resources embodying economic benefits is probable,
is provided for, except in the extremely rare
circumstances where no reliable estimate can be made.

(iii) Contingent Assets are not recognized in the financial


statements as this may result in the recognition of
income that never be realized.

101

+xS-18 J ]{{h

SCHEDULE - 18 NOTES ON ACCOUNTS

1.

i V E E nxn E +x{ ={V il


+x{V +O i {{i |vx E M *

1.

2.1

(i)+i J Vx E |] E x +
vx v E |Mi { B JE z J
x + V |] E 31.03.2012 iE |E
x E n M * J v i +i vx,
{h |, n E< , |vx E i{h x
M*

2.1. (i)

Reconciliation and clearance of outstanding entries


in Inter Branch adjustments are in progress and
especially initial matching of debit and credit entries
in various heads have been done upto 31.03.2012.
Pending final clearance, the overall impact, if any,
on the accounts, in the opinion of the management
will not be significant.

(ii)

At some branches, preparation of details / balancing


/ reconciliation of accounts relating to Balances with
Banks and NOSTRO Accounts are in progress.
Since substantial progress has been made in the
above areas, the management is of the view that
the impact of reconciliation, if any, on the accounts
of the Bank will not be material.

EU J+ V, +O B x] Ji E v
h E i/Ji E x/vx E E |Mi {
* =H Ij < {{i |Mi E qxV |vx E +i
E E E J { vx E |, +M i, iiE
x M*

(ii)

(iii)

. . . E xn E +x, 330 J+ E v
z CiMi B +CiMi J {x +i, V
E ` 141.39 Ec x @h , |vx E E lxii
E n M l B +EE J-x J M
l* .. x <x 330 J+ E, B J+ E
{ , ix { E E i h {] x Ex
E +xi n * |vx E +i E E E J {
vx E |, +M i, iiE x M*

2.2(i) 31.03.1997, 31.03.2005 il 31.03.2007 E {i


B Ei{ { E {xEx +xni EE
E {] E +v { E M + G: ` 125.99
Ec (hVE B +), ` 370.08 Ec (hVE
B +) il ` 298.32 Ec (hVE) E =vM
vx E {xx +Ii E V E M* |iE
{xEi { { E {Ex +Ji
{ E VBM* {xEx E Eh ` 4.24 Ec
(Mi ` 4.45 Ec) E +iH E {V
+Ii +ii E +xS .14 (n vii) +x
+ E +iMi v + n M *
(ii)

(iii)

(iv)

Adequate provision has been made in respect of


Performing and Non-performing Advances in terms of
Reserve Bank of India (RBI) guidelines.

(iii) In terms of RBI directives, old difference in various


Personal and Impersonal Account heads in respect
of 330 branches aggregating net credit of `141.39
Crores was transferred to Head Office and kept in
Contingency Account- General. RBI has further
permitted not to report these 330 branches as arrear
carrying branches in Banks quarterly statement on
Balancing of Books. The management is of the view
that the impact of these items /reconciliation, if any,
on the accounts of the Bank will not be material.
2.2. (i)

V Jb E +M Mi ={v x , B
+I E Jb il x E Mi { |i
E M *
V Mi ={v x {]] +v i
{]]vi { | E {vx Mi +v
{ +l +Ji { E M *
xxEi {k i {VEh E +{SEiB {
E Vx :-

102

(ii)

Certain premises were revalued on the basis of the


reports of the approved valuers during the year
ended on 31.03.1997, 31.03.2005 and 31.03.2007
and upward revision amounting to `125.99 Crore
(commercial and residential), `370.08 Crore
(commercial and residential) and ` 298.32 Crore
(commercial) respectively had been credited to
Revaluation Reserve. Depreciation on Revalued
premises is worked out each year on its written down
value. Additional depreciation of `4.24 Crore
(previous year `4.45 Crore) on account of
revaluation has been transferred from Revaluation
Reserve Account and shown in Miscellaneous
Income under the head Other Income included in
Schedule No. 14 item (vii)
Depreciation has been charged on composite cost
of Land and Building, where separate cost of land is
not available.

(iii) Premium on leasehold land has been amortized over


the period of lease, based on cost or written down
value, where original cost is not available.
(iv) For the following properties registration formalities
are yet to be completed:

(v)

E. 1990 + 1998 E nx EEi B x


G: 29 + 10 ] 2 + {k Jn M<
VxE Mi ` 0.86 Ec ({U ` 0.86 Eb)
*
J. +xn E, x< n BE {]]vi {k VE
Mi ` 0.09 Ec ({U ` 0.09 Ec) *

a.

2 residential properties purchased during the year


1990 & 1998 at Kolkata & Bhubaneshwar consisting
of 29 & 10 flats respectively with total original cost of
` 0.86 Crore (Previous year ` 0.86 Crore).

b.

1 leasehold property at Anandlok, New Delhi with


original cost amounting to ` 0.09 Crore (previous
year ` 0.09 Crore).

+i +i i +x +i E h xxx
*

(v)

Other Assets include intangible Assets, details of


which are as under.

(` Ec )
h / Particulars

+l / Opening Balance
E nx Vc / Additions during the year
E nx {vi / Amortized during the year
<i / Closing Balance
2.3(i)

(ii)

61.25 Ec (Mi ` 0.44 Ec) E +Ei E


x E v E E + G{/]E] |{i Ex
*
, {ix bS il <C] Vc S+ b/
S E{] b E x] i E {I +O
E x ` 1045.18 Ec (Mi ` 770.89 Ec)
*
`

/ Current Year

Mi

/(` in crore)

/ Previous Year

35.59

20.05

3.08

19.19

4.94

3.65

33.73

35.59

2.3. (i)

In respect of Investments of face value of ` 61.25


Crore (Previous year ` 0.44 Crore), the Bank is yet
to receive scrips/certificates.

(ii)

Total Investments made in shares, convertible


debentures and units of equity linked mutual fund/
venture capital funds and also advances against
shares aggregate to ` 1045.18 Crore (Previous year
` 770.89 Crore).

(iii) i

V E E nxn E +x ` 23.00 Ec
(Mi x) E , V E b ] S] h
|ii E G x E x , E
{V |Ii Ji +ii E M *

(iii) As per RBI guidelines, an amount of ` 23.00 Crore


(Previous Year NIL) being an amount equivalent to
post Tax profit on sale of Held to Maturity category
securities is transferred to Capital Reserve Account.

(iv) V

(iv) In respect of Held to Maturity category as stated in


significant Accounting Policy No. 3 (iii), the excess
of acquisition cost over the face value of the security
amortized during the year amounts to ` 61.26 Crore
(Previous year ` 83.33 Crore) has been netted-off
from Income on Investment shown under the head
Interest Earned of Profit and Loss Account in terms
of RBI guidelines.

E i{h J xi J 3(iii) =Ji ,


b ] S] h E E nx {vi
|ii E +Ei E >{ ` 61.26 Ec (Mi
` 83.33 Ec) E +iH +Vx Mi il V
x { + P]E ..E E xnx x J E x + xvx E {xx
x E { n M *
2.4E x E nx Vx ]bM E B E< k{h x
E + x E +i E |iiEh E *
2.5 E nx E x i Vx xM (B+<) i
<E z Vx+ E +vx +]x +v { ` 182.94/
- |i E | { |iE ` 10/- E 2,38,10,771
<C] , V E ` 459.40 Ec (MM) , V E*
` 459.40 Ec (MM) ` 23.81Ec (MM)
{V Ji B ` 435.59 Ec (MM) | Ji
V E M*

2.4. The Bank has not made any financing for margin trading
during the year and also not securitised any assets.
2.5. During the year, Bank has issued 2,38,10,771 equity
shares of ` 10/- each at a premium of ` 182.94 per share
amounting to ` 459.40 Crore (approx.) on preferential
allotment basis to Life Insurance Corporation of India
including its various schemes (LIC). Out of `459.40 Crore,
` 23.81 Crore (approx.) credited to Share Capital Account
and ` 435.59 Crore (approx.) to Share Premium A/c.

103

E E nxn E +x |E]Eh/Disclosure in terms of RBI guidelines:

3.

{V/
h

3.1

(` Ec )

Capital

Particulars

Mi

Current Year

Previous Year

12.83

12.96

9.13

8.57

3.70

4.39

55.24

58.00

x / NIL
x / NIL

x / NIL
x / NIL

+B+ (%) / CRAR (%)


+B+ - ]-* {V (%) / CRAR Tier I Capital (%)
+B+ - ]-** {V (%) / CRAR Tier II Capital (%)
i E E vh E |iii

i)
ii)
iii)
iv)

Percentage of the shareholding of the Government of India

]-** {V E { =M M< +vxl @h E

v)

Amount of subordinated debt raised as Tier-II capital


vi)
vii)

+<{b+< V EE =M M< / Amount raised by issue of IPDI


+{ ]-** Ji V E =M M<

x / NIL

x / NIL
(` Ec ) / (` in crore)
S
Mi

Amount raised by issue of Upper Tier II instruments


3.2. x / Investments

h
Particulars
(1)

(2)

Current Year

x E / Value of Investments
(i) x E E / Gross Value of Investments
(a) i / In India
(b) i / Outside India
(ii) +I i |vx / Provisions for Depreciation
(a) i / In India
(b) i / Outside India,
(iii) x E x / Net Value of Investments
(a) i / In India
(b) i / Outside India,
x { +I E { vi |vx E Sx

Previous Year

54770.15
x /NIL

43544.84
x /NIL

486.91

Movement of provisions held towards depreciation on investments.


(i) +l / Opening balance
(ii) Vc: E nx E M |vx / Add: Provisions made during the year
(iii) DxtYk& rlJuN fuU yvtuFl fuU rtY ={M E M |vx
Less: Write off/ write back of excess provision during the year
(iv) <i / Closing balance
3.2.1

/(` in crore)

{ xnx (+Ei E { ) / Repo Transactions (in face value terms)


E nx
E

E nx
xxi E

outstanding
during the year

Minimum
outstanding
during the year

297.78

x /NIL

x /NIL

54283.24
x /NIL

43247.06
x /NIL

297.78
258.58

251.80
130.85

69.45
486.91

84.87
297.78

(` Ec ) /(` in crore)
E nx 31.03.2012 E
+vEi E lli nxE
+i

Maximum
outstanding Daily Average
during the year As on31.03.2012

{ E +iMi S M< |ii / Securities sold under repo

400.00

5000.00

1936.95

2500.00

(i)

400.00

5000.00

1936.95

2500.00

0.00

0.00

0.00

0.00

100.00
100.00

5000.00
5000.00

1415.85
1415.85

3000.00
3000.00

0.00

0.00

0.00

0.00

E |ii / Govt Securities


E{] @h |ii

(ii)
Corporate Debt Securities

{ E +iMi Jn M< |ii

/
Securities purchased under reverse repo
(i) E |ii /Govt. Securities
(ii)

E{] @h |ii /
Corporate Debt Securities

104

3.2.2 M-BB+ x {] / Non-SLR Investment Portfolio


i) nxE 31.3.2012 E lli M-BB+ x E VEi P]x/ Issuer composition of Non SLR investments as on 31.03.2012
(` Ec ) /(` in crore)

. VEi

xV {]
E mebt

"" <x]] Ob""


|ii E mebt

""+x ]b""
""+x ]b""
|ii E mebt |ii E mebt

No. Issuer

Amount

Extent of
Private
Placement

Extent of Below
Investment
Grade Securities

Extent of
Unrated
Securities

(1)
(i)
(ii)
(iii)
(iv)

(2)

{B / PSUs
k lB / FIs
E / Banks
|<] E{]/

(3)

(4)

(5)

Extent of
Unlisted
Securities

(6)

(7)

772.10
1687.39
4576.19

593.62
1146.26
131.00

NIL
NIL
NIL

NIL
NIL
NIL

51.38
31.83
NIL

Private Corporate

1782.40

1341.46

205.56

136.87

136.37

Subsidiaries /
Joint Ventures
(vi) +x/ Others
={E/ Sub-total

177.22
348.92
9344.22

177.22
173.92
3563.48

NIL
NIL
205.56

NIL
NIL
136.87

NIL
NIL
219.58

(v)

+xM lB /
H =t

i E
M |vx

Provision held towards


Depreciation
E / Total

342.93
9001.29

/ Shares
bS B xb / Debentures and Bonds
+xM B H =t / Subsidiaries and Joint Ventures
+x / Others
E /Total
ii) M-x{nE M-BB+ x/Non performing Non-SLR investments
i)
ii)
iii)
iv)

h
Particulars

593.12
3648.71
177.22
4925.17
9344.22

(` Ec )
S

Mi

Current Year

Previous Year

+l- / Opening balance


2.04
st
E nx {vx / Additions during the year since 1 April
0.36
E nx E / Reductions during the above period
1.50
<i- / Closing balance
0.90
vi E |vx / Total provisions held
0.90
3.2.3 BS ] B h E / G B +ih& x /Sale & Transfer to/from HTM category: NIL
3.3 b<] / Derivatives
3.3.1 b n E/V n { / Forward Rate Agreement/ Interest Rate Swap:
h
S
Particulars
(i)
(ii)

(iii)

/(` in crore)

4.04
0.00
2.00
2.04
2.04

(` Ec )

/(` in crore)

Mi

Current Year

Previous Year

500

500

Losses which would be incurred if counterparties failed to


fulfill their obligations under the agreements

x /NIL

x /NIL

Collateral required by the bank upon entering into swaps

Banking

Banking

(60.94)

(56.02)

{ E E xx vx / Notional principal of swap agreements


+M E E +iMi |i{I +{x Sxri+ E { Ex
i = x P]
{ x { E u Ui {E

(iv)

{ x @h VJ { ExpEh

(v)

Concentration of credit risk arising from the swaps


{ E E =Si / Fair value of the swap book

105

BCSV { ]bb V n b<] : x ({U


: x)
3.3.3 b<] VJ BC{V vi |E]Eh
MhiE |E]Eh :
E E ]V J {Sx E ix EiE Ij l, ]
+, b + B E + E { H E M
Vx {i =kni B E+{ E E l |Ii
+vE |nx E M *
E E ]V xi k b<] Ji, ={M E
Ij, +xnx |G i @h B l +{x {Vx ,
+E B ]{ E l +xni Ji
]bM i |iVi +vE hi * xi G E
||<] ]bM {Vx E n Jn/G i E +l {]
+{x E Jn/G B +{x OE E E u E ] E
EM E +vvx b<] =i{n |nx Ex E +xi *
] + {Vx E b x{ni Ei VE b +
]bM E xnx E xMx Ei il +M +iH {lx
i i = =SSi |vE E VxE Vi *
b + {E ={Eh l, B]B, B+, ExC] B
{vi E v nxE +v { xnx i k
VJ E { Ei * +Ec E {]M VJ |vx
M E E Vi V +i B ni |vx vi xnE
E i E VJ |< +Mi Ei * E +
|i{I {] i b E x{] Ei *
E +i +l ni E { xq] {, V V
+l Mi E +l k h V { E
Vi , E UcE V +i +l ni+ E |iI
Ex V n { E |ni +v { Jr E Vi
* { {i x { +l P] E { E nMi
EE +l +i/ni+ E EE E { Ei
E Vi * xnx E |i{I {] E B E{] lB
il E Vx b +xni BC{V + E +n *
+ +Yx, | B bE=] E B i W E,
b< B B+<BBbB u - { V nxn E
+xh E Vi *

3.3.2

3.3.2 Exchange Traded Interest Rate Derivatives: NIL


(Previous year: NIL)
3.3.3 Disclosures on risk exposure in derivatives
Qualitative Disclosure:
Operation in the Treasury Branch of the Bank are segregated
in three functional areas i.e. Front Office, Mid Office and Back
Office, which are provided with trained officer with defined
responsibilities and back up roles.
The Treasury Policy & Derivative policy of the Bank lays down
the type of financial derivatives instruments, scope of usages,
approval process as also the limits like the open position limits,
deal size limits and stop loss limits besides delegated power
for trading in the approved instruments. The policy also allows
purchase / sale of call or put options to hedge cross currency
proprietary trading positions and to offer derivative products
to its customer subject to back to back covering by the Bank.
The Front Office takes positions and executes the deals while
the Mid Office monitors the transactions in the trading book
and deviations of excesses, if any, are brought to the notice of
higher authorities. The Mid office also measures the financial
risk for transactions on a daily basis through measurement
tools such as MTM, VAR, Convexity and modified durations.
The figures are reported to Risk Management division, which
appraises the risk profile to the Assets and Liability
Management committee. The Back office settles all the deals
with counter parties.
Interest Rate Swaps which hedge interest bearing assets or
liabilities are accounted for on accrual basis except the Swaps
designated with an asset or liability that is carried at market
value or lower of cost or market value in the financial
statements. Gain or Losses on the termination of Swaps are
recognised over the shorter of the remaining contractual life
of the Swap or the remaining life of the assets/liabilities. Trading
Swap transactions are marked to market with changes
recorded in the financial statements. The counterparties to the
transactions are Banks and corporate entities and deals
undertaken are within the approved exposure limits only. The
guidelines issued by RBI, FEDAI & FIMMDA from time to time
for recognition of Income, Premium and Discount are followed.

{hiE |E]Eh / Quantitative Disclosures


G..

Sl No

Particulars

(i)

(ii)

(iii)
(iv)

(v)

(` Ec )

b<] (xx )/ Derivatives (Notional Principal Amount)


E) VM E B / a) For hedging
J) ]bM E B / b) For trading
btfUoTz ] E] {Vx (1)/ Marked to Market Positions (1)
E) +i (+) / a) Asset (+)
J) ni / b) Liability (-)
@h BC{V (2)/ Credit Exposure (2)
V n BE |ii E {ix E | (100*PV01)

/(` in crore)

Ex
b<]

V n
b<]

Currency
Derivatives

Interest rate
derivatives

x /NIL
x /NIL
x /NIL

500.00
500.00
x /NIL

x /NIL
x /NIL
x /NIL

x /NIL
60.94

x /NIL

Likely impact of one percentage change in interest rate (100*PV01)


E) VM b<] { / a) on hedging derivatives
J) ]bM b<] { / b) on trading derivatives

x /NIL
x /NIL

0.17
0.00

Maximum and Minimum of 100*PV01 observed during the year


E) VM { / a) on hedging
J) ]bM { / b) on trading

x /NIL
x /NIL

0.25
0.00

E nx { M

100*PV01 E

+vEi B xxi

106

+i Mhk / Asset Quality


3.4.1 +x{V +i / Non-Performing Asset
n/
3.4

Items
(i)
(ii)

(iii)

(iv)

(` Ec ) /(` in crore)
Mi

Current Year

Previous Year

0.98

0.79

1647.92
2232.06
1821.00
2058.98

1221.80
1747.07
1320.95
1647.92

736.37
1051.06
695.73
1091.70

470.15
940.97
674.75
736.37

x +O x Bx{B (%) / Net NPAs to Net Advances (%)


Bx{B E Sx (E) / Movement of NPAs (Gross)
(E) +l / (a) Opening balance
(J) E nx {vx / (b) Additions during the year
(M) E nx E / ( c) Reductions during the year
(P) <i / (d) Closing balance
x Bx{B E Sx / Movement of Net NPAs
(E) +l / (a) Opening balance
(J) E nx {vx / (b) Additions during the year
(M) E nx E / (c) Reductions during the year
(P) <i / (d) Closing balance
Bx{B E |vx E Sx (xE +i { |vx E UcE)

Movement of provisions for NPAs (excluding provisions on standard assets)

(E) +l / (a) Opening balance


(J) E nx EB MB |vx / (b) Provisions made during the year
(M) +iH |vx E <] + / <] E /
( c) Write-off / write-back of excess provisions

(P) <i

/ (d) Closing balance

863.55
1181.00

751.65
800.00

1077.27
967.28

688.10
863.55

{xM` x/ Loan Restructuring:


{xM`i +i E /Particulars of Accounts Restructured:
3.4.2 @h

(` Ec )

{xMXi
xE +O

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )

Standard Advances
Restructured

Sacrifice (diminution in the fair value)

{xMXi
+xE +O

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )

Sub-standard Advances
Restructured

{xMXi nMv
+O
Doubtful Advances
Restructured

/ Total

/(` in crore)

b+
CDR
ij

BB< @h

+x

SME Debt

Others

Total

{xMXi

{xMXi

Mechanism

Restructuring

Restructuring

20
930.78

2284
644.62

8407
4388.64

10711
5964.05

79.24

13.26

36.31

128.79

1
9.32

469
88.56

564
220.68

1034
318.55

1.92

0.69

4.57

7.19

284
9.57

659
60.95

943
70.52

0.48

0.90

1.37

21
940.10

3037
742.75

9630
4670.27

12688
6353.12

81.16

14.43

41.78

137.36

Sacrifice (diminution in the fair value)

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )
Sacrifice (diminution in the fair value)

=vEi+ E J / No of Borrowers
E / Amount Outstanding
+viM (=Si )
Sacrifice (diminution in the fair value)

107

+i {xM`x i |iiEh / {xM`x E{x E S M< k {k E h :

3.4.3

Details of financial assets sold to Securitisation / Reconstruction Company for Asset Reconstruction:.

(` Ec ) /(` in crore)
S
{U

n/
Items

Current Year

Previous Year

10

ii)

Ji E J / No. of Accounts
B / + E S M Ji E E (|vx P]E)

iii)

Aggregate value (net of provisions) of accounts sold to SC / RC


E |i /Aggregate consideration

0.00
0.70

21.05
21.05

iv)

Mi +ii E M Ji E M +iH |i
0.00

4.95

v)

Additional consideration realised in respect of accounts transferred in earlier years


x { E /x /
Aggregate gain/(loss) over net book value

0.70

4.95

i)

3.4.4

Jn M< / S M< +xVE k {k E h :


Details of non-performing financial assets purchased/ sold:

E. Jn M< +x{V k +i: x


J. S M< +x{V +i E h :

A. Non-performing financial assets purchased: NIL


B. Details of non-performing financial assets sold:

h
Particulars

(` Ec ) /(` in crore)
Mi

Current Year

Previous Year

1. S MB Ji / No. of accounts sold


2. E E / Aggregate Outstanding
3. |{i E |i / Aggregate consideration received

10
4.05
0.70

xE +i { |vx /

3.4.5

Provisions on Standard Asset

h
Particulars

xE +i E B |vx /
3.5

1
21.05
26.00

+x{i

Provisions towards Standard Assets

Particulars

(ii)
(iii)
(iv)
(v)
(vi)

Current Year

Previous Year

509.81

362.57

/ Business Ratios:

h
(i)

(` Ec ) /(` in crore)
Mi

Mi

Current Year

Previous Year

E xv E |iii E { V +
Interest Income as a percentage to Working Funds

8.49%

8.56%

Non-interest income as a percentage to Working Funds

0.52%

1.07%

Operating Profit as a percentage to Working Funds


+i { |i /
Return on Assets
|i ES (V il +O) ( ` Ec )
Business (Deposits plus Advances) per employee (` In Crore)
|i ES (` Ec ) /
Profit per employee (` In Crore)

2.36%

2.37%

1.02%

1.11%

12.17

10.63

0.0836

0.0670

E xv E |iii E { M-V +

E xv E |iii E { {SxMi

108

3.6 +i

ni |vx / Asset Liability Management:


+i B ni+ E Ei{ n E {{Ci {]x 31.03.2012
Maturity pattern of certain items of assets and liabilities as on 31.03.2012

(` Ec )

/(` in crore)

n p

{{Ci {]x
Maturity Pattern

Foreign Currency

(]< E])

+O

=v

+i

niB

(Time buckets)

Deposits

Advances

Investments

Borrowings

Assets

Liabilities

1nx / Day 1
2 7 nx / 2 to 7 days
8 14 nx / 8 to 14 days
15 28 nx / 15 to 28 days
29 nx 3

1193.14

439.25

16.33

0.00

170.98

17.12

3152.50

464.65

328.93

508.74

338.02

998.54

3692.61

1363.29

199.05

356.13

154.99

116.96

1635.92

1925.76

1132.90

20.35

483.20

20.76

29246.17

17054.39

3165.29

1599.49

1440.08

1669.31

Over 3 months and up to 6 months 16575.26

19205.51

1846.61

1931.68

1955.31

1480.94

23216.87

14414.79

1971.66

274.31

280.59

431.77

58555.02

24872.29

5488.06

1433.79

135.63

214.77

9816.31

12278.31

9386.55.

459.56

244.80

254.06

12509.28

19126.86

30747.86

2510.43

972.52

147.29

159593.08

111145.10

54283.24

9094.48

6176.12

5351.52

(` Ec )

/(` in crore)

29 days to 3 months

3 +vE + 6 iE
6 +vE + 1 iE
Over 6 months and up to 1 year

1 +vE + 3 iE
Over 1 year and up to 3 years

3 +vE + 5 iE
Over 3 years and up to 5 years

5 +vE
Over 5 years

E / Total
3.7
3.7.1

BC{V / Exposures:
{n Ij E BC{V / Exposure to Real Estate Sector:

h / Category
(E) |iI BC{V / /A) Direct exposure
(i) vE - / Residential Mortgages

Mi

Current Year

Previous Year

3573.24

3676.00

3440.55

3330.00

6052.63

3831.00

3.82
133.32

4.84
3.60

=v =x {k { vE u {hi |ii ,V =vEi E EV


+x E { *
Lending fully secured by mortgages on residential property that is or will be
occupied by the borrower or that is rented

- V |lEi Ij @h +O x i {j HMi + @h
(ii)

-of which individual housing loans eligible for inclusion in priority sector advance
hVE -{n / Commercial Real Estate

- =v hVE -{n (E x, Jn {E lx, q hVE


{, {E x, Eun hVE {, +tME +l
Mn lx, ], +vOh, E B xh +n) { vE u |ii *
BC{V M-xv +vi (BxB) B *

Lending secured by mortgages on commercial real estates (office buildings,


retail space, multi-purpose commercial premises, multi-family residential buildings,
multi-tenanted commercial premises, industrial or warehouse space, hotels,
land acquisition, development and construction, etc.). Exposure includes
non-fund based (NFB) limits;
(iii)

vE u li |ii (BB) B +x |iiEi BC{V x -

Investments in Mortgage Backed Securities (MBS) and other securitised exposures


E. / a. Residential
J. hVE -{n / b. Commercial Real Estate.

109

(` Ec )
S

h /
Category

Current Year

/(` in crore)

Mi

Previous Year

(J) +|iI BC{V / B) Indirect Exposure


] + E (BxBS) B + k E{x
(BSB) { xv +vi B M-xv +vi BC{V
Fund based and non-fund based exposures on National Housing Bank (NHB)
and Housing Finance Companies (HFCs).
{n Ij E BC{V / Total Exposure to Real Estate Sector
3.7.2 {V

V BC{V /

2087.97
11850.98

Exposure to Capital Market:

G . /

h /

Sl.No.
(I) <C]

Particulars

1105.00
8620.44

(` Ec )
S

/(` in crore)

Mi

Current Year Previous Year

, {ix b/ bS il <C] =xJ S+ b E x] EB


MB |iI x VxE xv +xxi: E{] @h xi x E Vi*

Direct investment in equity shares, convertible bonds, convertible debentures


and units of equity-oriented mutual funds the corpus of which is not exclusively
invested in corporate debt;
(II)

NIL

0.58

x /

NIL

x /

NIL

]E E E |ii B +|ii +O il ]E E B E] E E + V M]*


6.00

105.00

vx V]x E x x< E{x E <C] i |iE E +nx E B E{] E


/b/bS +l +x |ii E {I Ei @h +l Ei xv @h*
Loans sanctioned to corporate against security of shares/ bonds/ debenture or
other securities or on clean basis for meeting promoters contribution to the
equity of new companies in anticipation of raising resources;

(VII)

x /

22.19

Secured and unsecured advances to stock brokers and guarantees issued on


behalf of stock brokers and market makers;
(VI)

NIL

E {E |ii +l {ix b +l {ix bS +l <C] =xJ


S+ b u Ii iE E +x E |Vx i +li V |lE |ii E Uc E
/{ix b/{ix bS/<C] =xJ S+ b +O E {hi: E x Ei *
Advances for any other purposes to the extent secured by collateral security of shares
or convertible bonds or convertible debentures or units of equity-oriented mutual funds
i.e. where the primary security other than shares/convertible bonds/convertible
debentures/units of equity-oriented mutual fund does not fully cover the advances;

(V)

x /

+x E |Vx , V |lE |ii E { +l {ix b +l


{ix bS +l <C] =xJ S+ b E x] Vi , i +O
Advances for any other purpose where shares or convertible bonds or convertible
debentures or units of equity-oriented mutual fund are taken as primary security;

(IV)

683.63

<C] (+<{+/<B+{B i), {ix b B bS, <C] =xJ


S+ b E x] x i H E E n +O
Advances against shares /bonds/debentures or other securities or on clean basis
to individuals for investment in equity shares(including IPOs/ESOPs), convertible
bonds, convertible debentures and units of equity-oriented mutual fund;

(III)

652.01

x /

NIL

x /

NIL

x /

NIL

x /

NIL

x /

NIL

x /

NIL

x /

NIL

|ii <C] }/< E r E{x E {E @h

Bridge loans to companies against expected equity flows/issues;


(VIII) E |lE < +l {ix b +l {ix bS

33.73

+l <C] =xJ

S+ b E x] E v E u M< n |iri
Underwriting commitments taken up by Banks in respect of primary issue of shares
or convertible bonds or convertible debentures or units of equity oriented mutual funds;
(IX)

Vx ] bM i ]E E E k{h
Financing to stock brokers for margin trading;

(X)

=t {V xv ({VEi B M-{VEi nx ) E BC{V


All exposure to Venture Capital Funds (both registered and unregistered)

{V V E E BC{V

/ Total Exposure to Capital Market

110

7.55

4.73

687.75

827.67

3.7.3

VJ h E] BC{V / Risk Category wise Country Exposure:

VJ
h

31.03.2012 E
BC{V (x)

Risk
Category

Exposure (net)
as on 31.03.2012

xMh / Insignificant
E / Low
v / Moderate
+vE / High
i +vE / Very High
|ivi / Restricted
+-Gb] / Off-credit

3.7.4

E
vi |vx

31.03.2011 E
BC{V (x)

Provision held
as on 31.03.2012

Exposure (net)
as on 31.03.2011

31.03.2012

x
x
x
x
x
x
x

568.81
727.16
100.91
89.00
19.92
4.29
0.00

E / Total

(` Ec )

/NIL
/NIL
/NIL
/NIL
/NIL
/NIL
/NIL

E
vi |vx

31.03.2011

Provision held
as on 31.03.2011

x
x
x
x
x
x
x

1022.38
664.26
41.72
43.81
0.05
0.00
8.92

x /NIL

1510.09

/(` in crore)

/NIL
/NIL
/NIL
/NIL
/NIL
/NIL
/NIL

x /NIL

1781.14

E u +iGi BE =vEi (BB), =vEi (VB) E h


Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL) exceeded by the bank

(` Ec )/(` in crore)
=vEi E x

BE BC{V

Ei

31.03.2012 E lli E

Name of Borrower

Single Exposure limit

Sanctioned Limit

Outstanding Balance as on
31.03.2012

2380.00

2722.00

=.|. { E{x .
U.P. Power Corporation Ltd.

+|ii +O/
h

3.7.5

(` Ec ) /(` in crore)
Mi

Current Year

Previous Year

Unsecured Advance:

Particulars
a)
b)

2590.32

E +|ii +O / Total Unsecured Advances


< +i |ii u li +O V +vE { |,+xY{i,
|vE +n
Of which advances backed by intangible securities such as charge
over rights, licenses, authority etc.

11724.70

12484.48

x /NIL

589.62

v / Miscellaneous:
3.8.1 E nx +E i E M |vx E / Amount of Provisions made for Income tax during the year:
(` Ec ) /(` in crore)
h
S
Mi
3.8

Particulars

Current Year

Previous Year

314.13

455.66

(18.35)

51.94

+E i |vx / Provision for Income Tax


+lMi E i |vx / Provision for Deferred Tax
3.8.2

E u MB MB nb : x (Mi : x) / Penalties imposed by RBI: NIL

111

(Previous Year: Nil)

J xE E +x |E]Eh +{IB V i V E x J ]{{h i |E]Eh n E i nxn V


EB :

4.

Disclosure Requirements as per Accounting Standards where R.B.I has issued guidelines in respect of disclosure
items for Notes to Accounts:
4.1

J xE 5 +v i x +l x, { +v n + J xi {ix :
Accounting Standard 5- Net Profit or Loss for the period, prior period items and changes in accounting policies:

{ +v vi + + xxx

: / Income and Expenditure relating to prior period are as under:

(` Ec )/(` In crore)
h/Particulars
+/Income
/Expenditure
x/Net

S /Current Year

Mi /Previous Year

(1.60)

1.29

4.2 V +Yx E v BB 9 E +iMi xEn +v


{ +Yi + n i iiE x l |E]Eh E
+Ei x l*
4.3 E x ES l {x (x<), {x ({x), OS],
+E xEnEh, BB + U]] E v
+{x ni+ E +Yx i i xn JE
lx u V J xE 15 (BB 15) (vi) E
+{x *
4.3.1 xvE/M-xvE ES l, {x (B{<+),
OS], +E xEnEh, B.B.. + +E
E v E E ni E
(E)

i xn JE lx u V J xE
15(vi) xvi ri +

(J)

i EE lx u V nxn VBx
26 E +x +xni EE u Ex Ex
E +v { +Yi E Vi *

(0.03)

4.01

(1.57)

(2.72)

4.2.

Income items recognised on cash basis were either not


material or did not require disclosure under AS 9 on
Revenue Recognition.

4.3.

The Bank adopted Accounting Standard 15 (Revised)Employee Benefits, issued by Institute of Chartered
Accountants of India, for recognition of its liabilities in
respect of employee benefits, viz, Pension, Gratuity,
Leave Encashment, LFC and Sick Leave.

4.3.1. Banks liabilities in respect of the funded/ non-funded


employee benefits, viz., Pension(ABEPR), Gratuity,
Leave Encashment, LFC and Sick Leave are
recognised on the basis of actuarial valuation carried
out by approved Actuary as per
(a) Principles laid down in AS 15 (Revised) issued by
the Institute of Chartered Accountants of India,
and
(b) Guidelines GN 26 issued by Institutes of Actuaries
of India.

EE +xx / Actuarial assumptions:


h / Particulars

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Non-funded
{x
+E
(B<{+)
OS]
xEnEh
BB +E
Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

8.50%

8.50%

8.50%

8.50%

8.50%

Salary Escalation Rate


n / Attrition Rate(p.a)

5.00%
1.00%

5.00%
1.00%

5.00%
1.00%

Expected Rate of Return


on Plan Assets

8.50%

8.50%

x /NIL

(ABEPR)

i n / Discount Rate
ix E gi n
Vx +i { + E |ii n

112

x /NIL
1.00%

5.00%
1.00%

x /NIL

x /NIL

E) vi E ix {ix :

(` Ec )

A) Change in the present value of Obligation:

h / Particulars

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Non-funded
{x
+E
(B<{+) OS]
xEnEh
BB
+E
Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

a)

E + {+

C.Y.

2578.77

599.20

129.24

20.61

31.99

P.Y.

686.82

419.72

103.50

14.14

21.51

C.Y.

212.08

47.09

9.06

0.72

2.72

P.Y.

52.38

32.83

7.25

0.44

1.83

C.Y.

573.89

26.19

8.67

0.00

3.03

P.Y.

527.48

25.10

20.12

0.00

4.94

C.Y.

(167.50)

(90.51)

(45.23)

(24.14)

0.00

Benefits Paid

P.Y.

(141.27)

(67.00)

(36.30)

(17.98)

0.00

C.Y.

(22.49)

140.20

59.87

33.55

8.63

Actuarial Loss/ (Gain) on Obligation

P.Y.

1453.37

188.55

34.67

24.01

3.71

E +i {+

C.Y.

3174.75

722.17

161.61

30.74

46.37

PVO at the close of the year

P.Y.

2578.77

599.20

129.24

20.61

31.99

PVO at the beginning of the year


b) V

Mi

Interest cost
c) S

Mi

Current Service Cost


d) |nk

e) vi
f)

/ (` In crore)

{ EE x/ (+)

J) Vx {k E =Si {ix

/B) Changes in the Fair Value of Plan Assets:

(` Ec ) / (` In crore)
Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Non-funded
{x
+E
(B<{+) OS]
xEnEh
BB
+E

h / Particulars

Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

a)

E +i
Vx +i E =Si
Fair Value of Plan Assets at the
beginning of year

C.Y.
P.Y.

1781.59
686.82

438.48
419.72

C.Y.

151.44

37.27

P.Y.

54.95

33.58

C.Y.

769.28

265.74

Employers Contribution

P.Y.

1131.51

52.51

|nk

C.Y.

(167.50)

(90.51)

Benefits Paid

P.Y.

(141.27)

(67.00)

EE (x)/+

C.Y.

37.04

14.18

Actuarial (Loss)/Gain

P.Y.

49.60

(0.33)

Fair Value of Plan Assets

C.Y.

2571.85

665.16

at the close of year

P.Y.

1781.59

438.48

Vx +i { iE |i

C.Y.

188.08

50.31

Actual return on Plan Assets

P.Y.

57.00

28.28

b) Vx

+i |ii |i

Expected return of Plan Assets


c) ES
d)

e)

f)

g)

E +nx

E +i +i E =Si

113

M) x EE x / (+ ) / C
h / Particulars

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

(+)

b) Vx +i { EE x/(+)
Actuarial loss / (gain) on
Plan assets (C)
c) x EE (x)/+
Net Actuarial loss / (gain)
d) +v +Yi EE (x)/+
Actuarial loss / (gain) recognized
in the period

+x+Yi EE x

e)

Unrecognised actuarial loss

D)

/ (` In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Non-funded
{x
+E
(B<{+) OS]
xEnEh
BB
+E
Pension

a) vi { EE x /
Actuarial loss / (gain) on
obligation (B)

(` Ec )

Net Actuarial Loss / (Gain)

;wtlvt bku btg htrN

C.Y.
P.Y.

(22.49)
1453.37

140.20
188.55

59.87
34.67

33.55
24.01

8.63
3.71

C.Y.
P.Y.

(37.04)
(49.60)

(14.18)
0.33

0.00
0.00

0.00
0.00

0.00
0.00

C.Y.
P.Y.

(59.53)
1403.77

126.02
188.88

59.87
34.67

33.55
24.01

8.63
3.71

C.Y.
P.Y.

(59.53)
1403.77

126.02
188.88

59.87
34.67

33.55
24.01

8.63
3.71

C.Y.
P.Y.

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

/ Amount recognized in Balance Sheet:

(` Ec )

h / Particulars

/ (` In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Non-funded
{x
+E
(B<{+) OS]
xEnEh
BB
+E
Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

E) E +i {i
vi E ix
a)Present value of defined benefit

C.Y.

3174.75

722.17

161.61

30.74

46.37

obligation at the end of the Year

P.Y.

2578.77

599.20

129.24

20.61

31.99

C.Y.
P.Y.

2571.85
1781.59

665.16
438.48

0.00
0.00

0.00
0.00

0.00
0.00

C.Y.
P.Y.

602.90
797.18

57.00
160.72

77.60
62.04

34.27
24.45

14.38
10.48

P]B :/Less:
J) E {i { Vx
+i E =Si
b)Fair value of Plan Assets at
close of the Year

ix {j +Yi M-xvr
x ni /(+i)
c) Unfunded Net Liability/ (Asset)
recognized in Balance Sheet

114

R ) B x Ji +Yi :
E) Expenses recognized in Profit & Loss account

(` Ec )
h / Particulars

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Non-funded
{x
+E
(B<{+) OS]
xEnEh
BB
+E
Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

E) S Mi

/ (` In crore)

C.Y.
P.Y.

573.89
527.48

26.19
25.10

8.67
20.12

0.00
0.00

3.03
4.94

C.Y.
P.Y.

212.08
52.38

47.09
32.83

9.06
7.25

0.72
0.44

2.72
1.83

C.Y.
P.Y.

151.44
54.95

37.27
33.58

0.00
0.00

0.00
0.00

0.00
0.00

d) Net actuarial loss / (gain)

C.Y.

(59.53)

126.02

59.87

33.55

8.63

recognized in the year

P.Y.

1403.77

188.88

34.67

24.01

3.71

R) x

C.Y.

575.00

162.02

77.60

34.27

14.38

e) Net Benefit Expense

P.Y.

1928.69

213.23

62.04

24.45

10.48

a) Current service cost

J) V Mi
b) Interest Cost

M) Vx +i { |ii +
c) Expected return on Plan Assets

P) +Yi x EE
x/ (+)

S) ix {j +Yi ni+ E Sx :
F) Movements in the Liability recognized in the Balance Sheet

(` Ec )

/ (` In crore)

Vx E |E / TYPE OF PLAN
xvr / Funded
M-xvr / Non-funded
{x
+E
(B<{+) OS]
xEnEh
BB
+E

h / Particulars

Pension

Gratuity

Leave
Encashment

LFC

Sick Leave

(ABEPR)

E) +l x ni

C.Y.

797.18

160.72

0.00

0.00

0.00

a) Opening Net Liability

P.Y.

0.00

0.00

0.00

0.00

0.00

J) x

C.Y.

575.00

162.02

77.60

34.27

14.38

b) Net Benefit Expense

P.Y.

1928.69

213.23

62.04

24.45

10.48

M) +n E M +nx

C.Y.

(769.28)

(265.74)

0.00

0.00

0.00

c) Contribution paid

P.Y.

(1131.51)

(52.51)

0.00

0.00

0.00

M) <i x ni

C.Y.

602.90

57.00

77.60

34.27

14.38

d) Closing Net Liability

P.Y.

797.18

160.72

62.04

24.45

10.48

P]B / Less:

115

U) ]] u xB J MB x E |ii :

(%)/(in %)

G) Investment percentage maintained by the Trust:

h
Particulars

{x (B<{+)

OS]

Pension (ABEPR)

Gratuity

Mi

Current Year

Previous Year

Mi

Current Year

Previous Year

Exp E E |ii / Central Govt. Securities

22.26

21.35

26.30

31.08

V E E |ii / State Govt. Securities

31.68

37.37

33.41

30.20

40.19

39.58

36.27

38.56

V VxB / Special Deposit Scheme

0.40

0.85

0.11

0.16

+x x / Other Investment

5.47

0.85

3.91

0.0

=SS i E{] b ({B/{B)


High Quality Corporate Bonds (PSU/PFC)

4.4

M] {]M - J xE (BB) 17 M] {]M*

4.4. Segment Reporting Accounting Standard (AS) 17


Segment Reporting

M] SxB Ei k h xE E { 4 E
+x n M< *

Segment information is given in the Consolidated


Financial Statements in terms of para 4 of the Standard.

4.5 vi {IE E |E]Eh - J xE (BB) 18 vi


{] E S B xnx

4.5. Related Party Disclosures Accounting Standard (AS)


18 List of Related Parties and Transactions

E)

vi {] E x, E E l =xE v il EB MB
xnx :

G . x
No.

Name

a)

{nx

The names of the related parties, their relationship


with the bank and transaction effected.
(` ttFtu b) / (` In Lacs)

{v

Designation

Remuneration

{U

Current Year

Previous Year

Chairman & Managing Director

23.04

20.37

Sl.

31.03.2012 E lli Vn xnE / Existing Directors as on 31.3.2012


V.{. n+
+vI B |v xnE
1
Shri J. P. Dua
2

b. E

Shri D. Sarkar
3

E{E xnE

B. +. xE

E{E xnE

Executive Director

19.46

13.57

Shri M. R. Nayak

Executive Director

19.46

12.72

OS] il +E xEnEh vi E xvh O


E{x E +v { E { EE |h u E Vi
il inx = ={H Sx x M *
J) +xM E{x :
i)
+E <xx ]b ({h i )
M) H =t :
i)
BB+<(<b) .
ii)
x { Vx < E{x ]b
P) BB] :
i)
<n { Oh E*
ii)
n Oh E

Expenses towards gratuity and leave encashment are


determined actuarially on an overall company basis annually
and accordingly have not been considered in the above
information.
b)

Subsidiary:
i)

c)

d)

116

All Bank Finance Limited (wholly owned)

Joint Venture:
i)

ASREC (India) Ltd.

ii)

Universal Sompo General Insurance Company


Limited.

Associates:
i)

Allahabad U.P. Gramin Bank:

ii)

Sharda Gramin Bank

+ E <xx . E E 100% , BB+<


(<b) . 27.04% , x { Vx <
E{x 30% E B ={Ci n Ij Oh E E
E 35% E
+xM B Ij Oh E E l xnx E J (BB)
18 E vi {IE |E]Eh E { 9 E vx Ji B
x E M V V u xji =t E =x +x vi
{IE E l =xE xnx vi J Ex H Ei
V V u xji *

The Bank is holding 100% share in AllBank Finance Limited,


27.04% share in ASREC (india) Ltd., 30% share in Universal
Sompo General Insurance Company Limited and 35% share
in each of the above mentioned two Regional Rural Banks.
The transactions with the subsidiary and Regional Rural Banks
have not been disclosed in view of para 9 of the (AS)-18
Related Party Disclosure, which exempts state controlled
enterprises from making any disclosure pertaining to their
transactions with other related parties which are also state
controlled.
e)

(R) x { Vx <xx E{x ]b E E


E{x E l E xnx xxi :-

(` Ec )

h / Particulars
+Vi + /Income Earned
|nk | / Insurance Premium Paid
4.6

Transactions with associated company namely Universal


Sompo General Insurance Company Limited are as
follows:

{]] |E]Eh

/ Current Year

Mi / Previous Year

8.03

7.42

7.73

6.57

4.6. Lease Disclosure:

E) E E { E / + v+ E B z {]]
* < v xxi |E]Eh E Vi :xxJi |iE +v i xi x E Ex
{SxMi {]] E +iMi xxi {]] Mix E
M :
31.03.2012 E lli +{i {]] +v i n E

A)

i)

The Bank has various operating leases for office /


residential facilities. Disclosures in this regard are as
under:
i)

Total of future minimum lease payments under noncancellable operating leases for each of the following
periods:

Rent payable for unexpired lease period as on 31.03.2012

(` Ec )
Vn {]] +v / Existing Lease Period

n
S

BE +xvE / Not later than one year


BE E n il {S +xvE /
Later than one year and not later than five years
{S E n / Later than five years
ii)

iii)

iv)

/ (` in Crores)

ix {j E iJ E xi x E Ex ={ {]] E
+iMi |{i EB Vx |ii xxi ={ {]]
E Mix E M : x
vi +v i B x E h +Yi {]]
Mix : ` 76.02 Ec ({U ` 66.20 Ec)
vi +v i B x E h +Yi |{i
(+l |{) ={-{]] E Mix :x

ii)

/ (` in Crores)

/Amount Payable

/ Current Year

Mi / Previous Year

46.13

32.96

97.77
41.90

110.25
29.99

The total of future minimum sublease payments


expected to be received under non- cancellable
subleases at the balance sheet date: NIL.

iii)

Lease payments recognised in the statement of profit


and loss for the period: ` 76.02 Crore (previous year
` 66.20 Crore)
iv) Sub-lease payments received (or receivable)
recognised in the statement of profit and loss for the
period: NIL.
B) Financial Lease:
Bank is not having any assets under Financial Lease.

J) k {]] :
E E { k {]] E +iMi E< {k x *
4.7 |i +Vx : J xE (BB) 20 : / Earning Per Share Accounting Standard (AS) 20:
G .
Sl.
No.

h
Particulars

E.

|i + b<]b +Vx

Basic and Diluted Earning Per Share (`)

S /
Current Year

Mi /
Previous Year

39.18

31.85

(`)

117

|i + b<]b +Vx E Mhx / Calculation of Basic and Diluted Earning Per Share
G . h
Sl.

Particulars

Mi /

Current Year

Previous Year

1866.79

1423.11

47,64,10,588

44,67,80,864

39.18

31.85

10/-

10/-

No.

E.

<C] vE E i |nx E stlu x (` Ec )

Net Profit for the year attributable to Equity Share holders (` in Crores)

J.

<C] E i +i J

Weighted average number of Equity Shares

M.

|i +Vx (E/J) (`)

Basic Earning per Share (A/B) (`)

P.

|i xx

Nominal Value per share (`)

4.8

+ { E i J - J xE (BB) 22

4.8.
Accounting for Taxes on Income: Accounting
Standard (AS) 22

E nx +lMi E i E Vx E { ` 8.35
Ec(x) ({U x x ` 51.94 Ec) E B
x Ji V E M* ix {j E iJ E lli
+lMi E +i / ni+ E J P]E ix{j E il E
+x xxi :
h
Particulars

During the year, an amount of ` 18.35 Crore (Net) has been


credited (Previous year ` 51.94 Crore debited) to the Profit &
Loss Account by way of adjustment of deferred tax. The major
components of Deferred Tax Assets/ Liabilities as on Balance
Sheet date are as under:

(` Ec )

Vx
Vc/(P]B)

E |
At the beginning
of the Year

E {i {

Adjustment

At the close of
Add / (Less) the

Mi

Current Yr.

Previous Yr.

x/NIL

x/NIL

10.50

x/NIL

10.50

4.69

1.23

4.56

3.45

9.25

4.69

Provision for Pension(old)

3.66

0.00

(3.65)

0.00

Provision for LFC

x/NIL

3.29

3.29

4.69

4.89

18.35

(0.20)

23.04

4.69

0.00

0.00

Year

/ (` In crore)

Mi

Mi

Current Yr. Previous Yr. Current Yr. Previous Yr.

+lMi E +i
Deferred Tax Assets

+E xEnEh i |vx
Provision for Leave Encashment

+E i |vx
Provision for Sick Leave

x / NIL

vNl nu;w tJ"tl (vwhtle)


BB i |vx
E / Total
+lMi E niB
Deferred Tax Liabilities

+S +i E
Depreciation of Fixed Assets

x E { vi |ii {
={Si rfkU;w +n V
Interest Accrued but not due on securities
held as Investments

E / Total
+lMi E niB (x)
Deferred Tax Liabilities (Net)

80.55

28.81

0.00

51.74

80.55

80.55

80.55

28.81

0.00

51.74

80.55

80.55

75.86

23.92

(18.35)

51.94

57.51

75.86

118

cfU YaxeYb uKe fuU rlJuNt vh yt:rd; fUh yrCtt; lne fUh;t
gtrfU cfU fuU rJath mu Rm mkc"k b mbg b fUtuRo yk;h lnek ni> rlJuNt
vh yt:rd; fUh fuU yrCtt; vh Cth;eg ml=e tuFtfUth mk:tl fUe
rJNuMt mttnfUth mrbr; fuU rJath fuU ylwmth, cfU lu Rm bwu fUtu
Cth;eg cfU mkD fuU vtm btdo=Nol nu;w Cust ni gtrfU Wtud sd; b
Rm rJMg vh fUtgoJtne fUhlu b fUtVUe rCt;tYk ni>

The Bank does not recognise deferred tax on HTM category


of investments as in Banks opinion; there is no timing
difference in this regard. Pursuant to the opinion of the Expert
Advisory Committee of the Institute of Chartered Accountants
of India on recognition of deferred tax on investments, the
bank has referred the issue to the Indian Banks Association
for their guidance on the matter since there is a difference in
treatment on this subject in the industry.

4.9 xx E E : J xE (BB) 24

4.9.

Ivx i |E]Eh +{I M x *

Disclosure requirement is not applicable for the year


under review.

4.10 k +i E { E E +i E {{i + {
J xE (BB) 28 <{] + B] |V
x * |vx E =H xE E +x 31.03.2012
E E E +x +i E< <{] x +
+Yx i E< i{h i x
5.

|vx, +EE niB + +EE +i E


v J xE (BB) 29 E +x |E]Eh

5.1.1 x Ji x J MB |vx B +EEiB

ni+ i |vx E Sx (<i ) :

Discontinuing Operations: Accounting Standard


(AS) 24

4.10. A substantial portion of the banks assets comprise of


financial assets to which Accounting Standard (AS)
28 Impairment of Assets is not applicable. In the
opinion of the management, there is no impairment of
other assets of the Bank as at 31.03.2012 to any
material extent requiring recognition in terms of the said
standard.
5.

Disclosure in terms of Accounting Standard (AS) 29


on Provisions, Contingent Liabilities and
Contingent Assets:

5.1.1. Provisions & Contingencies debited to Profit & Loss


Account:

/ Provision and Contingencies debited to Profit & Loss Account :

(` Ec )
h

Mi /

Current Year

Previous Year

220.57

130.84

1183.46

800.00

144.47

81.81

Particulars
(a) x

{ i |vx / Provision for Depreciation on Investment


(b) Bx{B i |vx / Provision towards NPA
(c) xE +i i |vx/ Provision towards Standard Assets
(d) +E i |vx/ Provision towards Income Tax
(e) +lMi E +i/niB/ Deferred Tax Assets / Liabilities
(f) +<+B i |vx/ Provision for IRS
(g) +x /Others
E/Total

314.13

455.66

(18.35)

51.94

4.92

12.34

53.95

98.88

1903.15

1631.47

5.1.2. ni+ i |vx E Sx (<i ) :


Movement of Provision and Contingencies (Closing balance):

(` Ec )

(a) Bx{B

i |vx / Provision toward NPA


(b) x { i |vx / Provision for Depreciation on Investment
(c) xE +i i |vx/Provision towards Standard Assets
(d) +E i |vx/Provision towards Income Tax
(e) +lMi E +i/niB/Deferred Tax (Assets) / Liabilities
(f) ylwMd
k e ttC fUh /Fringe Benefit Tax
(g) +x /Others
E/ Total
119

/ (` In crore)

Mi /

Current Year

Previous Year

967.28

863.55

486.91

297.78

509.81

362.57

2061.21

1747.08

57.51

75.86

26.04

26.04

Particulars

/ (` In crore)

569.11

1112.19

4677.87

4485.07

(` Ec )

5.2. Floating Provisions:

h
(a)

/ Particulars

/ Current Year

Mi / Previous Year

48.00

48.00

x/NIL

x/NIL

48.00

x/NIL

x/NIL

48.00

+l |vx Ji +l /
Opening Balance in Floating Provision Account

(b)

E nx E M +l |vx E {h

Quantum of Floating Provision made during the year


(c)

E nx b b=x E E B |Vx
Purpose and amount of draw down during the year

(d)

+l |vx Ji <i
Closing Balance in Floating Provision Account

5.3.

/ (` in Crores)

|Ii b b=x : x ({U +<+B i ] |Ii ` 6.18 Ec)

Draw Down from Reserves: NIL (Previous year ` 6.18 Crore from special reserve for IRS)
5.4.
A.

Ei E |E]Eh : Disclosure of Complaints:


E Ei /Customer Complaints:

(a)
(b)
(c)
(d)

E
E
E
E

+ i Ei E J/No. of Complaints pending at the beginning of the year


nx |{i Ei E J/No. of Complaints Received during the year
nx xi E M< Ei E J/No. of Complaints Redressed during the year
+i i Ei E J/No. of Complaints pending at the end of the year

78
2114
2124
68

EM E{ u {i +vxh /Awards passed by the Banking Ombudsman :

B.
(a)
(b)

E + Exi x E M +vxh E J/No. of unimplemented awards at the beginning of the year


E nx EM E{ u {i E M +vxh E J

(c)

No. of awards passed by Banking Ombudsman during the year


E nx Exi E M +vxh E J /No. of awards implemented during the year

E +i Exi x E M +vxh E J/

(d) No. of unimplemented awards at the end of the year

SEi +x {j (B+) /Letters of Comfort (LoCs):


h / Particulars
(a) k E nx V /Issued during the Financial Year

5.6 |vx EV +x{i


i V E E nxn E +x 31.03.2012 E
lli E E |vx EV +x{i 74% ({U
75.67%)
5.7 E nx E :
Vx + M-Vx |{i Ex : ` 18.87
Ec
5.8 V, +O, BC{ + Bx{B E Exph :
V E Exph / Concentration of Deposits:

5
5
3

5.5

5.8.1.

/ Current Year
998.04

(` Ec ) / (` In crore)
Mi /Previous Year
1464.57

5.6. Provision Coverage Ratio


The provision coverage ratio of the bank in terms of RBI
guidelines as on 31.03.2012 is 74.00% (Previous Year
75.67%)
5.7. Income from Bancassurance business during the
year:
Commission received on life & non-life insurance
business: ` 18.87 Crore
5.8. Concentration of Deposits, Advances, Exposures &
NPAs:

/ Particulars

/ Current Year

Mi /Previous Year

21845.00

13155.00

c VEi+ E E V
Total Deposit of twenty largest depositors

E E E V c VEi+ E V E |ii

Percentage of Deposits of twenty largest depositors to Total Deposits of the bank

120

13.46

9.97

5.8.2.

(` Ec )

Concentration of Advances:

/ Particulars

/ Current Year

c =vi+ E E +O/Total Advances to twenty largest borrowers


E E E +O c =vEi+ E +O E |ii
Percentage of Advances to twenty largest borrowers to Total Advances of the bank

12521.82

15.64

13.37

(` Ec )
S

/ Particulars

Mi / Previous Year

17554.92

BC{V E Exph / Concentration of Exposures:

5.8.3.

/ (` in Crores)

/ (` in Crores)

/ Current Year

Mi / Previous Year

21410.22

14592.97

12.81

13.58

c =vEi+/OE E E BC{V
Total Exposure to twenty largest borrowers/ customers

E E E BC{V c =vEi+/OE E BC{V E |ii


Percentage of Exposure to twenty largest borrowers/customers to Total Exposure
of the bank on borrowers/customers

Bx{B E Exph /Concentration on NPAs:

5.8.4.

(` Ec )
S

/ Particulars

/ (` in Crores)

/ Current Year

Mi / Previous Year

370.42

296.55

S Bx{B Ji E BC{V (E)


Total Exposure to top four NPA accounts (Gross)
5.9.

Ij Bx{B& < Ij E +O Bx{B E |ii


Sector-wise NPAs: Percentage of NPAs to Total Advances in that sector

Ij / Sector
S / Current Year Mi / Previous Year
E B r Miv / Agriculture & Allied activities
5.06
4.06
=tM (<G, P, v + n) / Industry (Micro, Small, Medium and Large) 0.74
0.77
/Services
5.99
4.29
HE @h /Personal Loans
3.21
1.29
Bx{B E Sx / Movement of NPAs

Sl. No.
1
2
3
4
5.10.

h/Particulars
1 +| 2011 E E Bx{B (+l) E nx r (xB Bx{B)

Amount (` in Crore)

Gross NPAs as on 1st April 2011(Opening Balance)

1647.92

Additions (Fresh NPAs) during the year

2232.06

={ Vc (E) P]B / Sub- Total (A)


P]B /Less:(i) =zx Upgradations
(ii) (+{Ob Ji E M< E UcE)

3879.98
455.07

Recoveries (excluding recoveries made from upgraded accounts)

364.73

<]-+/Write-offs
={ Vc (J) / Sub- Total (B)
31 S 2012 E lli E Bx{B (<i) (E-J)

1821.00

Gross NPAs as on 31st March 2012 (Closing Balance) (A-B)

2058.98

1001.20

(iii)

5.11.

n +i Bx{B + V / Overseas Assets, NPAs and Revenue

h/Particulars

Amount (` in Crore)

E +i / Total Assets
E Bx{B / Total NPAs
E V / Total Revenue

6354.18
2.61
173.11

121

5.12 ix {j |Vi B{ (Vx J xE E


+x Ei E Vx +{Ii ): x
5.13 +{vi {x + OS] ni :

5.12. Off-Balance Sheet SPVs sponsored (which are


required to be consolidated as per accounting
norms): NIL.
5.13. Unamortised Pension and Gratuity Liabilities:

E.k 2010-2011 E nx <n E (ES) {x


x 1995 E ii ES i {x v E{ E {x:
Ex B OS] E Mix +vx, 1972 E ii OS] +
gk Ex { E x {x i ` 708.07 Ec + OS] i
` 39.63 Ec E E +iH E c ni +n E
, V i V E E nxE 09 , 2011 E {{j
b+b J {..80/21.04.018/2010-11 E +x
{vi E M * =H {{j E |vx E +x, {vi
JS E {S M (1/5th) E +h |iE E Vx SB
+ inx, i +{vi JS E { ` 598.16
Ec +Oxi Ei B k 2010-11 + x J
` 149.54 Ec (+li {x i ` 141.61 Ec + OS] i
` 7.93 Ec, V ` 747.70 Ec E {S M ) |i E
M* i V E E =H xn E +xh Ei B E x
S k E nx + x J ` 149.60 Ec
(+li ` 141.60 Ec + ` 8.00 Ec G:) E E
|i E il ` 448.56 Ec (+li ` 424.86 Ec +
` 23.70 Ec G:) E +M k V M *

A.

On re-opening of Pension option to employees under


Allahabad Bank (Employees) Pension Regulations 1995
and enhancement in Gratuity limits under the Payment
of Gratuity Act 1972 during the financial year 2010-2011,
the Bank had incurred huge liability towards additional
load amounting to ` 708.07 Crore for Pension and `
39.63 Crore for Gratuity, which were amortised in terms
of Reserve Bank of India circular DBOD No.BP.BC.80/
21.04.018/2010-11 dated 9th February, 2011. As per the
provisions of the said circular, 1/5th of the amortised
expenses is to be absorbed each year and accordingly,
`149.54 Crore (i.e., `141.61 Cr for Pension + ` 7.93 Cr
for Gratuity, representing one-fifth of ` 747.70 Cr) was
charged to the Profit and Loss Account in F.Y. 2010-11,
carrying forward ` 598.16 Crore as unamortised
expenses for future years. Following the said directive
of the Reserve Bank of India, during the current financial
year the Bank has charged a sum of ` 149.60 Crore
(i.e., ` 141.60 Cr + ` 8.00 Cr respectively) to the Profit
and Loss Account and ` 448.56 Crore (i.e., ` 424.86
Cr+ ` 23.70 Cr respectively) is carried forward to next
financial year.

J 01.04.2010 E +l E n E Vcx ES
i {i +nx xk i Vx E Exx
, E x {B+bB E xE + | xjh E
+iMi Bx{B E E{] b i ] {x |h
+{x + E xxq] ES i xH-ES
v E {v E +iMi i E{] Bx{B
+ * S i E E +nx E +xxi E
E + x J x J n M *

B.

In implementation of the Defined Contribution Retirement


Benefit Scheme for the employees joining service of the
Bank on or after 01.04.2010, the Bank has adopted
National Pension System for Corporate Model of NPS
under the regulatory and administrative control of PFRDA
and has joined NPS as Corporate under the purview of
employer-employee relationship for these underlying
employees. Estimated amount of Banks contribution for
the current year has been provided to debit of profit and
loss account for the year.

6.

6.

Contingent Liabilities:

+EE niB :
ix {j E +xS 12 E G J (I) (VI) l
=Ji B niB G: x/+]x/x
E x{]x E {h, +{ E x{]x, M E M<
, nMi vi+ E i, P]xG + vi
{IE u E M< M { x *

7.

{VMi Ji { x{nx i n E +xxi


VE |vx x E M (+O E x) ` 110.46
Ec ({U 41.84 Ec)*

8.

+x|V +i E +iMi vi |vx E Ij E+{


E E +O +xxi +v { P] n M
iE ix {j E +xS 9 lH x +O E
xE E*

Such liabilities as mentioned at Sl. No.(I) to (VI) in


schedule 12 of Balance Sheet are dependent upon the
outcome of court / arbitration / out of court settlement,
disposal of appeals, the amount being called up, terms
of contractual obligations, devolvement and raising of
demand by concerned parties respectively.
7.

Estimated amount of contracts remaining to be executed


on capital account and not provided for (Net of advance)
` 110.46 Crore (Previous Year ` 41.84 Crore).

8.

Sector wise break up of provision held under nonperforming advances is deducted on estimated basis
from gross advances to arrive at the balance of net
advances as stated in the Schedule-9 of the Balance
Sheet.

122

9. +i E Mi |h{j i `. 550.00 Ec ({U


x) +O |nx EB MB VE VJ E { *
< i +i E Mi |h{j i nB Vx
+O `. 350.00 Ec ({U x) P] M
+ iiv VJ E { *

9.

Advances include ` 550.00 Crore (previous year NIL)


on account of Inter Bank Participation Certificates with
risk taken by the Bank. Likewise, a sum of ` 350.00 Crore
(previous year NIL) has been reduced from advances
against Inter Bank Participation Certificates with risk
issue by the Bank.

10.

E n x, E x + E +vx, 1961 E v 36
(1) (viii) E +x] |Ii `. 209.00 Ec
({U `. 239.00 Ec )E E lxii E
*

10.

During the year, the Bank has transferred a sum of


` 209.00 Crore (Previous Year ` 239.00 Crore) to Special
Reserve in terms of section 36 (1) (viii) of the Income
Tax Act, 1961.

11.

E E xnE b x |nk {V E 60% E n


E ii E +li |iE `. 10/- E +Ei E
` 6/- |i *

11.

The Board of Directors of the Bank has recommended


dividend @60% of paid-up capital i.e. ` 6/- per share of
face value of ` 10/- each.

12.

V +E Z M {U E +Ec E {x:i
+l {x:MEi E M *

12.

Figures of previous year have been regrouped or


reclassified wherever considered necessary.

123

J{IE E {]

AUDITORS REPORT

To

i E ]{i
1. x <n E E 31 S, 2012 E {i E ix
{j, = iJ E Mx B x J il xEn |
h E J{I E * =H k h xxEi
EB MB :
i) u J{Ii 20 JB B 46 b E;
ii) +x J{IE u J{Ii 1755 JB;
iii) lx J{IE u J{Ii BE n J
iv) Sx li BE +J{Ii |ixv E B 775
+J{Ii JB B E VxE h E J
|vE u |hi E M * <x +J{Ii J+
2.95% +O, 9.78% V, 1.78% V + +
8% V xi *

The President of India

2. u J{Ii il +x J{IE u J{Ii


J+ E Sx E u i V E E nxn E
+x E M *

2. The branches audited by us and those audited by other


auditors have been selected by the Bank in accordance
with the guidelines issued to the Bank by the Reserve Bank
of India.

3. <x k h E Vn E |vx E *
=kni J{I E +v { <x k h
{ +{x +i H Ex *
4. x +{x J{I xi: i Ei J{I
xnb E +x E * =x xE E +{I E <
v =Si +x |{i Ex i J{I E E C
k h iiE +r h H * J{I
{Ih +v {, E |E] Ex I E VS
il k h |E]Eh E VS Ex *
J{I , |H J ri E Ex + |vx u
EB MB i{h +Ex i O k h E
|iiEh E Ex i *
5. E J{I +i E `
+v *
6. n EB x , +xS 18 E x] .
5.13 E + vx +Ei Ei V VxE Ij E
E E ES i {x E{ {x: Jx { i
W E u +{x nxE 09.02.2011 E {{j .
b+b.{. / 80/21.04.018/2010-11 E v
|nx E M< U] E +x BB 15 ES E |vx
E VxE E { M Ex v ` 448.56
Ec iE E r E Eh {x ni B OS] ni
+lMi EB Vx E i *
7. il k Sx B nB MB {]Eh
E +x il E E lni :
(i)

1. We have audited the attached Balance Sheet of


ALLAHABAD BANK as at 31st March 2012, the Profit and
Loss Account and the cash flow statement for the year
ended on that date annexed thereto, incorporated in the
said financial statements are the accounts of :
i)

20 Branches and 46 Zonal offices audited by us ;

ii) 1755 Branches audited by other auditors ;


iii) One overseas branch audited by local auditor;
iv) One unaudited representative office in China and 775
un-audited branches and offices, the returns of which
are certified by the Branch Managers. The unaudited
branches account for 2.95% of advances, 9.78% of
deposit, 1.78% of interest income and 8% of interest
expenses.

3. These financial statements are the responsibility of the


Banks Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
4. We conducted our audit in accordance with the auditing
standards generally accepted in India. Those standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles
used and significant estimates made by the management,
as well as evaluating the overall presentation of financial
statement.
5. We believe that our audit provides a reasonable basis for
our opinion.
6. Without qualifying our opinion, we draw attention to note
no. 5.13 of schedule 18 which describes deferment of
pension liability and gratuity liability due to increase in
ceiling to the extent of ` 448.56 crores pursuant to the
exemption granted by the Reserve Bank of India to the
public sector Banks from application of the provisions of
AS 15, Employees Benefits vide its circular No
DBOD.BP.BC/80/21.04.018/2010-11 dated February 9th,
2011, on reopening of Pension option to employees of
public sector Banks.
7. In our opinion and to the best of our information and
according to the explanations given to us and as shown by
the books of the Bank:

i{h J xi + =x { ]{{h E l {`i


ix{j {h B =Si ix{j V +E h
nB MB il i xi Ei J ri
124

(i) The Balance Sheet read with the Significant Accounting


Policies and Notes thereon, is a full and fair Balance
Sheet containing all the necessary particulars and is
properly drawn up so as to exhibit a true and fair view

(ii)

(iii)

E +x{ =Si fM i E M iE E E
31 S, 2012 E EEV E B =Si U |ii
E E*
i{h J xi + =x { ]{{h E l {`i
B x J i xi Ei J ri
E +x{ vi i E ni *

of the state of affairs of the Bank as at 31st March 2012


in conformity with accounting principles generally
accepted in India.
(ii) The Profit and Loss Account read with Significant
Accounting Policies and Notes thereon shows a true
balance of Profit for the year ended on that date in
conformity with accounting principles generally
accepted in India.

xEn | h, = iJ E {i i xEn
| E B =Si U |ii Ei *

(iii) The Cash Flow Statement gives a true and fair view of
the cash flows for the year ended on that date.

8. ix {j il B x J EM x +vx
1949 E ii +xS E G: E il J i
EB MB *
9. ={H {O 1 =Ji J{I E + E +v
{ B EE E{x (={G E +Vx B +ih) +vx,
1970 u l +{Ii il = |E] + E +vx
x] J 2(i), (+xS-18) E +x +i J Ji
|] E x/vx + E il x] Ji
+i E x + vx E v ;

8. The Balance Sheet and the Profit and Loss Account have
been drawn up in Form A and B respectively of the Third
Schedule to the Banking Regulation Act, 1949.

{] Ei E:
(E) x SxB B {]Eh |{i EB V
k VxE B E +x J{I E
|Vxl +E l il x =x iVxE { *

We report that:

9. Subject to the limitations of the audit indicated in paragraph


1 above and as required by the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970, and
also subject to the limitations of disclosure required therein
and subject to Notes No.2 (i), (Schedule 18) regarding
balancing / reconciliation of unmatched entries in inter
branch accounts and balancing/ reconciliation of Balances
with Banks and NOSTRO accounts;

(a) We have obtained all the information and explanations,


which to the best of our knowledge and belief were
necessary for the purposes of our audit and have found
the same to be satisfactory.

(J) VxE +B E E xnx E E +vE E


+iMi *
(M) E E E il J+ |{i h
J{I E B {{i {< M< *

(b) The transactions of the Bank, which have come to our


notice, have been within the powers of the Bank.

10. ix {j, -x J + xEn |


h |V J xE E +x{ *

10. In our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement comply with the applicable
accounting standards.

Ei { B Bb BB]
For P A & Associates
JE / Chartered Accountants

xn

B.+ ./F.R. No:313085 E


(n{ E +O)

Ei B. +. xh Bb E.
For M. R. Narain & Co.
JE / Chartered Accountants

xn
B.+ . ./F.R. No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner

ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

Ei E. B. +O Bb E.

Ei B. . Vx Bb E.

xn

For K. M. Agarwal & Co.


JE /Chartered Accountants

B.+ ../F.R. No: 000853 N


(. {. )
(C. P. Mishra)

{]x /Partner
ni ./ Membership No.-73009

lx

(c) The returns received from the Offices and Branches of


the Bank have been found adequate for the purpose
of our audit.

xn

For M. C. Jain & Co.


JE /Chartered Accountants

B.+ ../F.R. No: 304012 E


(E E {])
(Mukesh Kumar Patawari)
{]x /Partner

ni ./ Membership No.-056623

/ Place : EEi / Kolkata

nxE

/ Date : 05.05.2012

125

Ei B P Bb E.
For S. Ghose & Co.

xn JE /Chartered Accountants
B.+ ./F.R. No: 302184 E
(Sxnx S]]{v) (Chandan Chattopadhay)
{]x / Partner
ni ./ Membership No.-051254

Ei Bx.E. M Bb E.
For N. K. Bhargava & Co.
xn JE /Chartered Accountants

B+ . / FR No: 000429N
(Bx.E. M)
(N. K. Bhargava)
{]x /Partner

ni ./ Membership No.-080624

< n E

ALLAHABAD BANK

31 S, 2012 E lli Ei ix-{j

Consolidated Balance Sheet as on 31st March, 2012

h
PARTICULARS

(< Ec ) (< In Crores)

+xS

lli AS ON

lli AS ON

SCHEDULE

31.03.2012

31.03.2011

500.03

476.22

10218.83

8246.43

{V + niB / CAPITAL & LIABILITIES


{V/Capital
|Ii B +v /Reserves & Surplus
V/Deposits
=v /Borrowings
+x niB + |vx/Other Liabilities and Provisions
E /Total
+i /ASSETS
i W E xEn +

159583.87

131882.16

9099.38

6918.17

Cash and Balances with Reserve Bank of India

3908.78

4077.41

183310.89

151600.39

8712.48

7901.01

E + M il +{ Sx { n vx
Balances with Banks and Money at Call and Short Notice

5392.66

3140.32

xvx/Investments
@h B +O /Loans & Advances
l +i /Fixed Assets
+x +i /Other Assets
Ex { J /Goodwill on Consolidation
B x Ji E x

54524.21

43492.21

111145.94

93627.87

10

1207.66

1160.17

11

2327.94

2278.81

183310.89

151600.39

61333.91

56394.49

6164.83

3,984.60

Debit Balance of Profit and Loss A/C

E /Total
+EE niB /Contingent Liabilities
h E B / Bills for Collection
Wvh mk=rCo; ylwmrq agt tuFu fUt +z ykd /

12

The schedules reffered to above form


an integral part of the Accounts
xnE / Directors:
b E Cx / Dr. Shashank Saksena
B =nMi / Sri A Udgata
V B Sin /Sri Rajesh M Chaturvedi
M n / Sri Gour Das
x E / Sri Nirmal Kumar Bari
n xh /Sri Deveshwar Narain Singh
b n{ Sv / Dr. Sudip Chaudhuri
+E V / Sri Ashok Vij

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

J. P. DUA
Chairman & Managing
Director

B. +. xE

]. +. S

E{E xnE

E{E xnE

(M. R. NAYAK)
Executive Director

(T. R. CHAWLA )
Executive Director

+. E.

E |vE (k B J)

(R. K. MEHRA)
Assistant General Manager (F& A)

A. B. Bhattacharjee
General Manager (F & A)
CFO & Compliance Officer

il E {] E +x / As per our report of even date


Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


JE / Chartered Accountants
B.+. ./F.R. No:313085 E

xn

xn

(n{ E +O)

For M. R. Narain & Co.


JE / Chartered Accountants
B.+. ./F.R. No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

Ei E. B. +O Bb E.

Ei B. . Vx Bb E.

xn

For K. M. Agarwal & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 0853 N

xn

ni

For M. C. Jain & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 304012 E

(E E {])

(. {. )

lx / Place: EEi / Kolkata


nxE / Date: 05.05.2012

B.. ^S

|vE (k B J)
B+ B +x{x +vE

(Mukesh Kumar Patawari)


{]x /Partner
ni ./ Membership No.-056623

(C. P. Mishra)
{]x /Partner
./ Membership No.-073009

126

Ei B P Bb E.
For S. Ghose & Co.

xn JE /Chartered Accountants
B.+. ./F.R. No: 302184 E
(Sxnx S]]{v) (Chandan Chattopadhay)
{]x / Partner
ni ./ Membership No.-51254
Ei Bx.E. M Bb E.

For N. K. Bhargava & Co.


xn JE /Chartered Accountants
B.+. ./ FR No: 000429N

(Bx.E. M)

ni

(N. K. Bhargava)
{]x /Partner
./ Membership No.-080624

< n E
ALLAHABAD BANK

31 S, 2012 E {i nu;w mburfU; x J

Consolidated Profit & Loss Account for the year ended 31st March, 2012

{i /Year ended

+xS

PARTICULARS

SCHEDULES

I. + / Income
+Vi V / Interest earned
+x + / Other income
E /Total
II. / EXPENDITURE
E M V /Interest expended
{Sx /Operating expenses
|vx + +EE /Provisions & Contingencies
E /Total

(` Ec ) (` In Crores)
{i /Year ended

31.03.2012

31.03.2011

13
14

15527.67
1305.16
16832.83

11024.62
1375.14
12399.76

15
16

10359.97
2722.90
1904.32
14987.19

6992.85
2359.75
1634.38
10986.98

18.70

27.73

1864.34
0.00

1440.51
0.00

1864.34

1440.51

253.64
2117.98

263.35
1703.86

474.40
970.71

366.77
749.82

350.23

333.63

322.64
2117.98
39.14

253.64
1703.86
32.22

+xM +/x E +
Share of earnings/loss in Associates

+{JE V P]x { E Ei x /(x)


Consolidated Net profit/(loss) for the year
before deducting Minorities Interest
P]B : +{JE V / Less: Minorities Interest

r i Ei /(x) /
Consolidated profit/(loss) for the year
attributable to the group

Vc: r Ei /(x) +Oxi


Add: Brought forward consolidated profit/(loss)
attributable to the group
E /Total
III. xVx /APPROPRIATIONS
mtkrJr"f |Ii E +ih /Transfer to Statutory Reserves
+x |Ii E +ih /Transfer to Other Reserves
yk;rhb / |ii ( vh fUh mrn;)
Interim / Proposed Dividend (Including Tax on Dividend)

Ei ix {j +Oxi
Balance carried over to consolidated Balance Sheet
E /Total
|i +Vx /Earnings per Share

>{ ni +xS J E +z +M
The Schedules referred to above form an integral part of the Accounts.
B. +. xE
V. {. n+
E{E xnE
+vI B |v xnE

xnE / Directors:
b E Cx / Dr. Shashank Saksena
B =nMi / Sri A Udgata
V B Sin /Sri Rajesh M Chaturvedi
M n / Sri Gour Das
x E / Sri Nirmal Kumar Bari
n xh /Sri Deveshwar Narain Singh
b n{ Sv / Dr. Sudip Chaudhuri
+E V / Sri Ashok Vij

J. P. DUA
Chairman & Managing
Director

(M. R. NAYAK)
Executive Director

]. +. S

B.. ^S

+. E.

E{E xnE

|vE (k B J)
B+ B +x{x +vE

E |vE (k B J)

(T. R. CHAWLA )
Executive Director

(R. K. MEHRA)
Assistant General Manager (F& A)

A. B. Bhattacharjee
General Manager (F & A)
CFO & Compliance Officer

il E {] E +x / As per our report of even date


Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


JE / Chartered Accountants
B.+. ./F.R. No:313085 E

xn

xn

For M. R. Narain & Co.


JE / Chartered Accountants
B.+. ./F.R. No: 002330 S

Ei B P Bb E.
For S. Ghose & Co.

xn JE /Chartered Accountants
B.+. ./F.R. No: 302184 E

(n{ E +O)
(Dillip Kumar Agarwalla)
{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E ] x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

Ei E. B. +O Bb E.

Ei B. . Vx Bb E.

xn

For K. M. Agarwal & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 0853 N

xn

ni

Ei Bx.E. M Bb E.
For N. K. Bhargava & Co.
xn JE /Chartered Accountants
B.+. ./ FR No: 000429N

(Bx.E. M)

(E E {])

(. {. )
lx / Place: EEi / Kolkata
nxE / Date: 5th May, 2012

For M. C. Jain & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 304012 E

(Sxnx S]] { v) (Chandan Chattopadhay)


{]x / Partner
ni ./ Membership No.-51254

(Mukesh Kumar Patawari)


{]x /Partner
ni ./ Membership No.-056623

(C. P. Mishra)
{]x /Partner
./ Membership No.-073009

127

ni

(N. K. Bhargava)
{]x /Partner
./ Membership No.-080624

< n E

ALLAHABAD BANK

31 S, 2012 E i {i Ei xEn | h

Consolidated Cash Flow Statement for the year ended 31st March, 2012

(< Ec )(< in Crore)


h / Particulars

2011-12

2010-11

E. {Sx Miv xEn |


A

Cash Flow from Operating Activities

E nx +O, xvx +n |{i V


Interest received during the year
from Advances, Investments etc.

15527.67

+x + /Other Income
P]B: / Less:
E nx V { |nk V /

1319.62

11024.62
16847.29

1398.42

12423.04

Interest paid during the year on


Deposits

(9742.20)

(6498.94)

|vx B +EEi+ i {Sx


Operating Expenses including
Provisions & Contingencies
Vc: / Add:
l +i { / Depreciation on Fixed Assets

{Sx Vi xEn
({SxMi +i + ni+ {ix {)

a.

Cash Profit generated from operations


(prior to changes in operating

(4627.22)

assets and liabilities)

(14369.42)

(3994.14)

(10493.08)

76.13

69.80

2554.00

1999.76

J. ni+ r (E)
b.

Increase (Decrease) in Liabilities

V /Deposits
+x niB B |vx / Other Liabilities & Provisions
M. +i E (r)
c.

27701.71
(157.73)

25831.42
27543.98

525.18

26356.60

Decrease (Increase) in Assets

+O /Advances
x /Investments
+x +i / Other Assets
{SxMi Miv x xEn | (E+J+M)

(17518.07)

(22020.12)

(11032.00)

(4867.67)

(49.13)

(28599.20)

(883.37)

(27771.16)

Net Cash Flow from


Operating Activities (a+b+c)

1498.78

585.20

x Miv xEn |
Cash Flow from Investing Activities

l +i E G/x{]x /Sale/disposal of fixed assets


l +i E G / Purchase of fixed assets
J x Miv x xEn |
B

9.81
(134.00)

Net Cash Flow from Investing Activities

2.50
(124.19)
(124.19)

128

(100.58)

(98.08)
(98.08)

Ei xEn | h (V...) / Consolidated Cash Flow Statement (Contd.)


h / Particulars

(< Ec )(< in Crore)

2011-12

2010-11

k{h Miv xEn |


Cash Flow from Financing Activities
=v / Borrowings
=v { V / Interest on Borrowings
(E i) / Dividends (including tax)
<C] E xM /
Issue of Equity Share

k{h Miv Vi x xEn

Net Cash generated from Financing Activities

2181.21
(617.77)
(333.63)

1482.69
(493.90)
(287.44)

459.41

670.00

E n x E xEn | (E+J+M)

Total Cash Flow during the year (A+B+C)

E + xEn + xEn i

Cash and Cash equivalent at the


beginning of the year

1689.22

1371.35

3063.81

1858.47

i W E E { xEn il
Cash and Balances with RBI

7901.01

7187.87

E + M il +{ Sx { n vx

R
E

Balances with Banks and Money


at Call and Short Notice
E / Total

3140.32

1994.99
11041.33

9182.86

E +i xEn + xEn i

Cash and Cash equivalent at the


end of the year

i W E E vtm xEn +
Cash and Balances with RBI

8712.48

7901.01

E + M il +{ Sx { n vx
Balances with Banks and Money
at Call and Short Notice
E / Total

5392.66

3140.32
14105.14

11041.33

3063.81

1858.47

E n x E xEn | (R-P)

Total Cash Flow during the year (E-D)


xnE / Directors:
b E Cx / Dr. Shashank Saksena
B =nMi / Sri A Udgata
V B Sin /Sri Rajesh M Chaturvedi
M n / Sri Gour Das
x E / Sri Nirmal Kumar Bari
n xh /Sri Deveshwar Narain Singh
b n{ Sv / Dr. Sudip Chaudhuri
+E V / Sri Ashok Vij

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

J. P. DUA
Chairman & Managing
Director

B. +. xE

]. +. S

E{E xnE

E{E xnE

(M. R. NAYAK)
Executive Director

(T. R. CHAWLA )
Executive Director

+. E.

E |vE (k B J)

(R. K. MEHRA)
Assistant General Manager (F& A)

A. B. Bhattacharjee
General Manager (F & A)
CFO & Compliance Officer

il E {] E +x / As per our report of even date


Ei { B Bb BB]

Ei B. +. xh Bb E.

For P A & Associates


JE / Chartered Accountants
B.+. ./F.R. No:313085 E

xn

xn

(n{ E +O)

For M. R. Narain & Co.


JE / Chartered Accountants
B.+. ./F.R. No: 002330 S

(Dillip Kumar Agarwalla)


{]x /Partner
ni ./ Membership No.-55420

(B. Bx. E]x) (M N Venkatesan)


{]x / Partner
ni ./ Membership No.-22993

Ei E. B. +O Bb E.

Ei B. . Vx Bb E.

xn

For K. M. Agarwal & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 0853 N

xn

ni

For M. C. Jain & Co.


JE /Chartered Accountants
B.+. ./F.R. No: 304012 E

(E E {])

(. {. )

lx / Place: EEi / Kolkata


nxE / Date: 5th May, 2012

B.. ^S

|vE (k B J)
B+ B +x{x +vE

(Mukesh Kumar Patawari)


{]x /Partner
ni ./ Membership No.-056623

(C. P. Mishra)
{]x /Partner
./ Membership No.-073009

129

Ei B P Bb E.
For S. Ghose & Co.

xn JE /Chartered Accountants
B.+. ./F.R. No: 302184 E
(Sxnx S]]{v) (Chandan Chattopadhay)
{]x / Partner
ni ./ Membership No.-51254
Ei Bx.E. M Bb E.

For N. K. Bhargava & Co.

xn JE /Chartered Accountants
B.+. . / FR No: 000429N
(Bx.E. M)
ni

(N. K. Bhargava)
{]x /Partner
./ Membership No.-080624

+xS

SCHEDULE

lli

/ As on
31.03.2012
(< Ec )
(< in Crore)

Particulars

lli

/ As on
31.03.2011
(< Ec )
(< in Crore)

+xS 1 - {V
SCHEDULE 1 - CAPITAL

|vEi {V / Authorised Capital


xMi {V (50,00,26,189 |iE <10)

3000.00

3000.00

Issued Capital (50,00,26,189 Shares of <10.each)

500.03

476.22

Subscribed Capital (50,00,26,189 Shares of <10 each)

500.03

476.22

Called-up Capita (50,00,26,189 Shares of <10 each)

500.03

476.22

0.00

0.00

(50,00,26,189 |iE < 10)

M M< {V (50,00,26,189 |iE < 10)


P]B: +nk M / Less: Calls unpaid
Vc: Vi / Add: Forfeited shares
E / Total

0.00

0.00

500.03

476.22

2503.61

2030.94

1224.33

1216.96

0.00

0.00

1821.82

1386.22

4346.43

3358.67

322.64

253.64

10218.83

8246.43

+xS 2 - |Ii + +v
SCHEDULE 2 - RESERVES & SURPLUS

h / Particulars
vE |Ii / Statutory Reserves
{V |Ii / Capital Reserves
Ex { vqse |thrGr;gtk / Capital Reserves on Consolidation
| / Share Premium
V B +x |Ii /Revenue and other Reserves
B x Ji /Balance in Profit and Loss Account
E / Total

+xS 2B - <x] <]]


SCHEDULE 2A - MINORITIES INTEREST

-+xM v E +ii +x E il E <x] <]]


Minority interest at the date on which the parant subsidiary relationship came into existence
{i r / E / Subsequent increase / decrease

ix {j E iJ E <x] <]]

/ Minority interest on the date of Balance Sheet

130

SCHEDULE

+xS
/ As on
31.03.2012
(` Ec )
(` in Crore)

lli

h
Particulars

/ As on
31.03.2011
(` Ec )
(` in Crore)

lli

+xS 3 - xI{
SCHEDULE 3 - DEPOSITS
h / Particulars

fU /A. I. M xI{ /Demand Deposits


(I) E / From banks
(ii) +x /From others
II. Si E xI{ / Savings Bank Deposits
III. n xI{ / Term Deposits
(I) E / From banks
(ii) +x / From others
E / Total (I, II, III)
B. (i) i li J+ E xI{ /
Deposits of branches in India
(ii)

34.17

47.90

9503.46

9108.12

39130.01

35000.43

1468.38

812.85

109447.85

86912.86

159583.87

131882.16

158979.50

131500.99

i E li J+ E xI{ /
Deposits of branches outside India

E / Total (I and II)

604.37

381.17

159583.87

131882.16

0.00

250.00

+xS 4 - =v
SCHEDULE 4 - BORROWINGS
h / Particulars
I.
(I)
(ii)
(iii)
(iv)

i =v / Borrowings in India
i W E /Reserve Bank of India
+x E /Other banks
+x lB B +Eh / Other institutions and agencies
xx n @h Ji/
Innovative Perpetual Debt Instrument

(v)

/
Upper Tier II Capital

16.83

312.16

296.11

131.51

300.00

300.00

1000.00

1000.00

2611.90

2611.90

+{ ]-II {V

(vi)

Mh @h- ]-II {V /Subordinated Debt - Tier II Capital


II. i E =v / Borrowings outside India
E /Total (I and II)
={H I + II i |ii =v
Secured borrowings included in I and II above

4874.54

2312.60

9099.38

6918.17

0.00

0.00

+xS 5 - +x niB B |vx


SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
h / Particulars
I.
II.
III.
VI.
V.

n / Bills payable
+i-Ex Vx (x) / Inter -office adjustments (net)
={Si V /Interest accrued
+lMi E niB / Deferred Tax Liabilities
+x (|vx i) /Others (including provisions)
E / Total
E M / Grand Total
131

290.05

387.12

58.42

242.69

354.17

545.34

57.52

75.94

3148.62

2826.32

3908.78
183310.89

4077.41
151600.39

SCHEDULE

+xS
/ As on
31.03.2012
(` Ec )
(` in Crore)

lli

h
Particulars

/ As on
31.03.2011
(` Ec )
(` in Crore)

lli

+xS 6 - i W E xEn +
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
h / Particulars
Ec (n E x] mrn;)/
I.
Cash in hand (including foreign currency notes)
II.

i W E / Balances with Reserve Bank of India


(i) S Ji / In Current Account
(ii) +x Ji /In Other Accounts

E / Total (I & II)

391.07

356.79

8321.41

7544.22

0.00

0.00

8712.48

7901.01

+xS - 7 E + M il +{ Sx { n vx
SCHEDULE 7 - BALANCES WITH BANKS AND
MONEY AT CALL & SHORT NOTICE
h / Particulars

i / In India
E / Balances with banks
(a) S Ji / In Current accounts
(b) +x V Ji /In Other Deposit accounts
(ii) M il +{ Sx { n vx /Money at call and short notice
(a) E /With banks
(b) +x l+ / With other institutions
E / Total
II. i E /Outside India
(a) S Ji /In Current account
(b) +x V Ji /In Other Deposit accounts
(c) M il +{ Sx { n vx /Money at call and short notice
E / Total
E M / Grand Total (I & II)
I.

(i)

143.47

256.29

415.45

191.71

1625.00

942.30

1199.19

240.00

3383.11

1630.30

686.80

823.26

0.00
1322.75

0.00
686.76

2009.55

1510.02

5392.66

3140.32

45258.31
71.18
400.32
3549.14
237.24

35139.73
120.04
445.53
2384.31
217.57

5008.02
54524.21

5185.03
43492.21

0.00
0.00
0.00
0.00
54524.21

0.00
0.00
0.00
0.00
43492.21

+xS 8 - xvx
SCHEDULE 8 -INVESTMENTS
h / Particulars
I. i xvx / Investment in India in
(i) E |ii /Government securities
(ii) +x +xni |ii / Other approved securities
(iii) /Shares
(iv) bS + v {j / Debentures and Bonds
(v) +xM xvx /Investment in Associates
(vi) +x (gway
w t VUzTm gqxeytRo ytr=) /
Others (Mutual Funds, UTI etc)
E /Total
II. i E xvx /Investments outside India in
(i) E |ii (lx |vEh i)
Government securities( including local authorities)
(ii) +xM xvx /Investment in Associates
(iii) +x xvx / Other Investments
E /Total
E M /Grand Total (I) & (II)

132

SCHEDULE

+xS
/ As on
31.03.2012
(` Ec )
(` in Crore)

lli

h
Particulars

III.

i xvx / Investment in India


(i) xvx E E /Gross value of Investments
(ii) +I i E |vx /
Aggregate of Provisions for Depreciation

xvx / Net Investment


(iv) i E xvx / Investment outside India

(iii) x

/ As on
31.03.2011
(` Ec )
(` in Crore)

lli

55015.22

43794.75

491.01

302.54

54524.21

43492.21

0.00

0.00

2813.46

4054.34

51471.50

40513.97

56860.98

49059.56

111145.94

93627.87

94579.63

77688.96

+xS 9 - +O
SCHEDULE 9 -ADVANCES

h
A.

/ Particulars

(i) G
(ii)

E MB B xB MB / Bills purchased and discounted


xEn @h, +b C] + M { |in @h
Cash credits, overdrafts and loans repayable on demand

(iii) n

@h /Term loans

E /Total
J/B. (i) i +i u |ii/Secured by tangible assets
( @h { +O i)/(includes advances against book debts)
(ii) E
/E |ii u Ii /
Covered by Bank/ Government Guarantees
(iii) Vxi/Unsecured

E /Total
M/C. I. i +O / Advances in India
(I) |lEi |{i Ij /Priority sector
(ii) VxE Ij /Public sector
(iii) E /Banks
(iv) +x /Others
E /Total
C. II. i E +O /Advances outside India
(I) E =ug /Due from banks
(ii) +x =ug /Due from others
(y/a) G EB MB + xB MB / Bills purchased & discounted

4840.77

3451.45

11725.54

12487.46

111145.94

93627.87

37396.43

30763.73

16772.86

14786.64

0.00

0.00

52253.42

45172.95

106422.71

90723.32

3220.97

1979.11

0.00

0.00

77.30

71.54

bE ] b @h /Syndicated Loans
(R/c) +x / Others

1285.01

749.87

139.95

104.03

E / Total

4723.23

2904.55

111145.94

93627.87

(yt/b)

E M /Grand Total

133

SCHEDULE

+xS
/ As on
31.03.2012
(` Ec )
(` in Crore)

lli

h
Particulars

/ As on
31.03.2011
(` Ec )
(` in Crore)

lli

+xS 10 - l +i
SCHEDULE 10 - FIXED ASSETS
h / Particulars
I. { /Premises

{i E 31 S fUe r:r; fuU ylwmth Mi {


At cost as on 31st March of the preceding year
E n x {vx / Additions during the year
E n x vwlbqo gtkrfU; / Revalued during the year
E n x E]i /Deductions during the year
+V E iJ iE yJGg /Depreciation to date
E /Total
IA. xhvx { / Premises under construction
E n x {vx / Additions during the year
E n x E]i / Deduction during the year
+V E iJ iE +I /Depreciation to date
E / Total
II. +x l +i (xS B CS i)
Other Fixed Assets (including Furniture
and Fixtures)

1002.22
29.64
0.00
0.01
79.48
952.37
0.00
21.63
0.00
0.00
21.63

1002.61
0.81
0.00
1.20
72.07
930.15
1.20
0.00
1.08
0.12
0.00

756.70
82.23
9.57
598.24
231.12

658.74
99.40
1.45
529.69
227.00

8.06

7.31

0.48

0.74

0.23
5.90
2.41
1207.53

0.00
5.16
2.89
1160.04

0.13

0.13

1207.66

1160.17

{i E 31 S fUe r:r; fuU ylwmth Mi {


At cost as on 31st March of the preceding year
E n x {vx / Additions during the year
E n x E]i / Deductions during the year
+V E iJ iE yJGg / Depreciation to date
E /Total II
IIA. {]] { n M< +i /Leased Assets

{i E 31 S E li E +x Mi {
At cost as on 31st March of the preceding year

Vx i E n x {vx
Additions during the year including adjustments

|vx i E n x E]i
Deductions during the year including provisions
+V E iJ iE +I /Depreciation to date
E /Total IIA
E / Total ( I, IA, II & IIA )
-- |Mi E ({]] { n M< +i) |vx
III. {V
Capital- Work - in - progress ( Leased Assets )
net of Provisions
E / Total ( I, IA, II, IIA & III )

E x

134

SCHEDULE

+xS
{i / Year Ended

h
Particulars

31.03.2012
(` Ec )
(` in Crore)

{i /Year Ended
31.03.2011

(` Ec )
(` in Crore)

+xS 11 - +x +i
SCHEDULE 11 - OTHER ASSETS
h / Particulars
I. +i E Vx (x) /Inter-Office Adjustments (net)
II. ={Si V /Interest accrued
III. +O { nk E/i { E] M E
Tax paid in advance/tax deducted at source
IV. Jx O B ]{ /Stationery and stamps
V. n E i] |{i E M< M-EE +i
Non-banking assets acquired in satisfaction of claims
VI. +lMi E +i /Deferred Tax assets
VII. +x /Others
E /Total
E M / Grand Total

0.00
1085.71

0.00
707.57

562.08
10.97

385.21
9.94

0.00
0.45
668.73
2327.94
183310.89

0.00
0.25
1175.84
2278.81
151600.39

1229.11

2655.05

0.16

0.16

45857.68

39908.56

+xS 12 - +EE =ug;tYk


SCHEDULE 12 - CONTINGENT LIABILITIES
h / Particulars
I.

E E r n Vx @h E { E x E M
Claims against the bank not acknowledged as debts

II.
III.

+i: nii x E B ni / Liability for partly paid investments


E n x n+ E Eh ni
Liability on account of outstanding forward
exchange contracts
/
Guarantees given on behalf of constituents

IV.

OE E + n M< |ii

(a)

i / In India
i E /Outside India
|iOh, {`E x + +x viB

7204.16

4094.71

866.20

420.55

Acceptances, endorsements and other obligations

6066.14

9273.62

110.46
61333.91
6164.83

41.84
56394.49
3984.60

11664.13

8275.43

3720.09

2675.63

122.89

54.68

(b)
V.
VI.

+x n VxE B E +EE { Vn
Other items for which the Bank is contingently liable

E /Total
h i

/ Bill for collection

+xS 13 - +Vi V B
SCHEDULE 13 - INTEREST AND DIVIDENDS EARNED
h / Particulars
I.
II.
III.

+O/ { V/]] /Interest/discount on advances/bills


x { + /Income on investments
i W E + +x +i-E xv { V
Interest on balances with Reserve Bank of India and
other inter-bank funds

IV. +x /Others
E /Total

135

20.56

18.88

15527.67

11024.62

SCHEDULE

+xS
{i / Year Ended

h
Particulars

31.03.2012
(` Ec )
(` in Crore)

{i /Year Ended
31.03.2011

(` Ec )
(` in Crore)

+xS 14 - +x +
SCHEDULE 14 - OTHER INCOME
h / Particulars
I.
II.

Ex, x + n /Commission, exchange and brokerage


, x il +x +i E G {
Profit on sale of land, buildings and other assets

838.01

783.74

0.10

0.00

-0.06

-0.01

289.61

73.02

P]B: , x il +x +i E G { x
Less: Loss on sale of land, buildings and other assets
III.

x xnx { /Profit on exchange transactions


P]B: x xnx { x /
Less: Loss on exchange transactions

IV.
V.

-174.94

0.00

123.48

161.70

-9.67
0.00

0.00
0.00

Less: Loss on revaluation of investments

0.00

-1.24

+ /Lease finance income


{]] |vx E /Lease management fee
c) +in | /Overdue charges
d) {]] E |{ vh V / Interest on lease rent receivables
v + / Miscellaneous income

0.00

0.00

0.00

0.00

0.00

0.00

xvx (x) E G { / Profit on sale of investments(net)


P]B: xvx E G x / Less: Loss on sale of investments
xvx E {x Ex { /Profit on revaluation of investments
P]B : xvx E {x Ex { x/

VI. a) {]]-k
b)

VII.

E /Total

0.00

0.00

238.63

357.93

1305.16

1375.14

9742.20

6498.95

159.57

48.21

+xS 15 - E M V
SCHEDULE 15 - INTEREST EXPENDED
h / Particulars
I.
II.

V { V /Interest on deposits
i W E/+i-E =v { V
Interest on Reserve Bank of India/ inter-bank borrowings

III. +x /Others
E / Total

458.20

445.69

10359.97

6992.85

1836.11
231.50
23.48
27.36

1558.91
201.98
22.02
35.85

76.68
0.00

69.80
0.00

1.17

1.32

+xS 16 - {Sx
SCHEDULE 16 - OPERATING EXPENSES
h / Particulars
I.

ES E Mix il =xE B |vx

Payments to and provisions for employees


II. c, E B x / Rent, taxes and lighting
III. ph + Jx O / Printing and stationery
IV. Y{x + |S /Advertisement and publicity
V.(a) {]] +ik <i E E {{k { +I
Depreciation on Banks property other than Leased Assets
V.(b) {]] +i { +I/Depreciation on Leased Assets
VI. xnE E , k + /
Directors fees, allowances and expenses

136

SCHEDULE

+xS
{i / Year Ended

h
Particulars

VII.

J{IE E + /Auditors fees and expenses


(J J{IE E + i)

{i /Year Ended

31.03.2012
(` Ec )
(` in Crore)

31.03.2011
(` in Crore)

17.69

17.94

(` Ec )

(including branch auditors fees and expenses)


VIII. v | /Law charges

20.22

13.73

IX.

19.41

24.54

bE, i, ]x +n /Postage, telegrams, telephones, etc.


X. i + +xIh / Repairs and maintenance
XI. /Insurance
XII. J E {vx, n E< / Amortisation of Goodwill, if any
XIII. +x / Other expenditure
E /Total
|vx + +EE /Provision & contingencies
+xM +/x E +/Share of Earnings /loss in associate
E {Si /Profit After Tax
+Oxi /Balance brought forward
E/ Total
xVx /Appropriation
vE |Ii +ih/Transfer to statutory reserve
x =i-Sg |Ii +ih /
Transfer from Investment fluctuation reserve

V |Ii E +xih /Transfer to Revenue Reserve


{V |Ii E +ih/Transfer to capital reserve
|Ii / Special reserve
+x |Ii / Other Reserve
|ii / Proposed Dividend
{ E /Tax on dividend
ix {j +Ouxi /Balance carried to Balance sheet
E/Total

54.80

41.33

125.41

99.91

0.00

0.00

289.07

272.42

2722.90

2359.75

1904.32

1634.38

18.70

27.73

1864.34

1440.51

253.64

263.35

2117.98

1703.86

474.40

366.77

0.00

0.00

750.00

400.00

11.71

0.00

209.00

349.83

0.00

0.00

301.34

287.04

48.89

46.58

322.64

253.64

2117.98

1703.86

+xM /Share of Profits/Loss in Associates


+xM E /Details of Associates
x /Name
n Oh E / Sharda Gramin Bank
<n { Oh E / Allahabad UP Gramin Bank
E /TOTAL
Rttntct= cfU fUt ykN / Allahabad Banks share
{U vi Vx / Adjustment relating to earlier years
E n x Vi / Considered during the year

137

9.77

9.02

43.66

70.20

53.43

79.22

18.70

27.73

0.00

0.00

18.70

27.73

Ei J+ vi |ME
J J xi

RELEVANT PRINCIPAL ACCOUNTING POLICIES


ON THE CONSOLIDATED ACCOUNTS

1. J E +v :
(E) k h, V +xl =Ji x , J E {{Mi
Mi {{] B ={Si +v { il vE |vx
B xi: E J ri E +x{ x +
|ii E M *
(J) k h + +Yx, +i MEh, |vxEh
il +x vi - { V i V
E (++<) E n xn E {] Ei * i
xn JE lx u V J xE B =nPh
B i EM =tM |Si J *
2. Ex |G:
(i) E, <E +xM + BB] E Ei k h,
i xn JE lx u V J xE, vi
xE |vE u V xnxn + xi
Ei J ri B i |Si xi V iE
+xl =Ji x +x{x Ex E +x i{h
{+ E l i EB MB *
(ii)

xxJi +xM E J xE 21 Ei k h
E +x Ei E M :

1.

Basis of Accounting:

(i)

The financial statements have been prepared under the


historical cost convention and accrual basis of accounting,
unless otherwise stated and are in conformity with the
statutory provisions and generally accepted accounting
principles.
The financial statements also conform to the guidelines
issued by the Reserve Bank of India (RBI) from time to
time in respect of income recognition, asset classification,
provisioning and other related matters. Accounting
standard and pronouncement issued by the Institute of
Chartered Accountants of India and accounting practices
prevalent in the Banking Industry in India.

(ii)

2.
(i)

Consolidation procedure:
The Consolidated financial statements of the Bank, its
subsidiary and its associates have been prepared to
comply, in all material aspects, in accordance with the
Accounting standards issued by the Institute of Chartered
Accountants of India, guidelines issued by the respective
regulatory authorities and generally accepted accounting
principles and policies prevailing in India except otherwise
stated.

(ii)

The following subsidiary has been consolidated as per


the Accounting Standard 21, Consolidated Financial
Statements

E{x E x

n /x

Name of the Company

Country / Residence

Relationship

+ E <x ]b

+xM

AllBank Finance Limited

India

Subsidiary

(iii)

xxJi BB] + H =t i xn JE
lx u V J xE 23 Ei k h
BB] x E J B J xE 27, H
=t i E k {]M E +x Ei EB
MB *

i i
Ownership Interest

100%

(iii) The following associates and Joint ventures have been


consolidated as per the Accounting Standard 23,
Accounting for Investments in Associates in Consolidated
Financial Statements and Accounting Standard 27,
Financial Reporting of Interest in Joint Ventures issued
by the Institute of Chartered Accountants of India
respectively:

l E x

n/x

i i

Name of the Entity

Country / Residence

Relationship

Ownership Interest

n Oh E

|Vi E

Sharda Gramin Bank

India

Sponsor Bank

<n { Oh E

|Vi E

Allahabad UP Gramin Bank.

India

Sponsor Bank

x { Vx < E{x ]b

H =t

Universal Sompo General Insurance


Company Ltd.

India

mkgw; Wb

Joint Venture

30%

ASREC (India) Ltd.

India

Joint Venture

27.04 %

+E (<b) .

138

35%
35%

3. i{h J xi E |E]Eh :
=Ji EM xi Ji: E l vi * E E BE
+xM V C 1 S] E E { {VEi +
BE H =t E{x V M-Vx M *
+xM + BB] E{x =xE xE u xvi
J xi E {x Ei * <x +M xn] x E
M CE Oi: k h E {|I x i{h
x *
4. n p r x-nx :
4.1
(i)

(ii)

3.

The accounting policies mentioned primarily relate to the Bank


entity. The Bank has a subsidiary which is registered with the
SEBI as a Class I Merchant Banker and one Joint Venture
Company is in the business of non-life insurance. The
subsidiary and Joint Venture Companies follow accounting
polices prescribed by their governing regulators. These have
not been specified separately as these investments are not
material in the context of the overall financial statements.
4.

i JB / E :

Disclosure of significant accounting policies :

Transactions involving Foreign Exchange:

4.1 Branches / Offices outside India :

n J+ E IIxx-<]O x +{xII E {
MEi E M ni il =xE k h E xxx
|ni E M ni*
pE B M-pE +i B niB il +EE niB
x BCSV b BBx + <b (b<) u
|iE i E {i { n Vx +i {] n {*

(i)

Foreign Branches are classified as Non-integral Foreign


Operations and their financial statements are translated
as follows:

Both monetary and non-monetary Assets and Liabilities


as well as Contingent Liabilities at the closing spot rates
notified by the Foreign Exchange Dealers Association of
India (FEDAI) at the end of each quarter.

V n b< u vi i E {i { +vSi
i +i +i n { {ii E Vi *

Revenue items are translated at the quarterly average


closing rate notified by FEDAI at the end of respective
quarter.

{h x +i E BE +M Ji n p
]x V J Vi *
n li |ixv E E {Sx E II<]O x
+{xII E { MEi E M il =xE k
h E Mhx xxx E Vi :

All resulting exchange difference is accumulated in a


separate account Foreign Currency Translation Reserve.

(ii)

Operations of representative offices abroad are classified


as Integral Foreign Operations and their financial
statements are accounted for as follows:

pE +i B niB, M], Ei, {Ex


il +x |iriB b< E nxnx |iE i
E +i |Si {] x n { i { +E
Vi *
M-pE n xnx E il { |Si x n {
+E Vi *
V n E Mhx xnx E il { |Si x n
{ E Vi *

All monetary Assets and Liabilities, Guarantees,


Acceptances, Endorsements and other obligations are
translated to Indian rupee equivalent at the spot exchange
rates prevailing at the end of each quarter as per FEDAI
guidelines.

Non-monetary items are translated at exchange rate


prevailing on the date of transaction.

Revenue items are accounted for at the exchange rates


prevailing on the date of transaction.

All resulting exchange differences are accounted for in


Profit & Loss Account.

{h x +i E -x tuJ J Vi
*

+O E i E |Si h E +iMi MEi


E VBM* +O E v |vx lx v +{I+
+l ..E E xE, V +vE , E +x E
VBM*
4.2 i JB :
(i) n p S +i +l ni (BBx+ Vx,
<<B Vx, +B Vx +n E +xiMi Oi
V i) il E n x n E
i n p { P (B<bB+<) u l Si
i yk; E n { {ii E M *
(iii)

(iii) Advances will be classified under categories in line with


those of Indian Offices. Provisions in respect of advances
will be made as per the local law requirements or as per
the norms of RBI, whichever is higher.
4.2 Branches in India :
(i)

n x n E {xEx { {h /x
il x] Ji B < b B +< E nxn E +x
139

Foreign currency balances whether of assets or liabilities


[including deposits mobilized under FCNR Scheme,
EEFC Scheme, RFC Scheme etc.] and outstanding
forward exchange contracts are converted at quarter end
rates as advised by Foreign Exchange Dealers
Association of India (FEDAI).
The resultant profit/loss on revaluation of forward
exchange contracts and NOSTRO accounts is taken to
revenue as per FEDAI guidelines.

V B MB *
(ii) n p vi + + E n E xnx E
iJ E |Si x n E |M E {ii E
Vi *
(iii) Ei, {XEx + M] i +x ni E
|iE i E +i b< u Si |Si n { +E
Vi *
5. x :
(i) E E x E i V E E nxn E +x
ix |M l '{{Ci iE vi', '{ i vi',
'G i ={v' il MEi E Vi *
(ii) =Ci ix h E +xiMi x E |E]Eh E +M
xxJi U MEi E Vi :
(1) E |ii,
(2) +x +xni |ii,
(3) ,
(4) bS B b,
(5) +xM l+/H =t il
(6) +x
(iii)

(iv)

(E) x V E {{Ci iE vi Ex Si , E
{{Ci iE vi E { MEi E i *
(J) x V G E il 90 nx E i {
{xG i vi E Vi , E { i vi
E { MEi E Vi *
(M) x V =Ci nx h MEi x , E G
i ={v E { MEi E Vi *
(P) x E G E = {{Ci iE vi,
i vi +l G E B ={v E { MEi
E Vi B h ii{Si E }]M xE
nxn E +x{ E Vi *
(R) +xME, Ci =t il M x E
{{Ci i vi E { MEi E Vi *
{{Ci i J M E +iMi MEi (Ij Oh E
E +) x +vOh Mi { B MB * +M +vOh
Mi +Ei +vE i i +iH E
{{Ci E +v { {vi E Vi YJk rlltuU
fuU rtY tJ"tl rfUgt st;t *
bxS / b E E V +O E { Z Vi
+i MEh E E E E{h xnb il +O
i |V |vxEh E |M Ei B*
+xM / H =t x E +l E UcE
tm>

(ii)

Income and Expenditure items relating to foreign currency


are converted using the exchange rate prevailing as on
the date of transaction.

(iii) Acceptances, endorsements and other obligations


including guarantees are stated at FEDAI advised rates
prevailing at the end of each quarter.
5.

Investments:

(i)

Investments are classified in accordance with RBI


guidelines under three categories viz. Held to Maturity,
Held for Trading and Available for Sale.

(ii)

Under the above three categories, Investments are further


classified into the following six groups :

1.

Government Securities,

2.

Other Approved Securities,

3.

Shares,

4.

Debentures & Bonds,

5.

Subsidiaries/ Joint Ventures and

6.

Others

(iii) a) Investments that the Bank intends to hold till maturity


are classified as Held to Maturity.
b) Investments that are held principally for resale within
90 days from the date of purchase are classified as
Held for Trading.
c) Investments, which are not classified in the above two
categories, are classified as Available for sale.
d) An investment is classified as Held to Maturity, Held
for Trading or Available for sale at the time of its
purchase and subsequent shifting amongst categories
is done in conformity with regulatory guidelines.
e) Investments in subsidiaries, joint ventures and
associates are classified as Held to Maturity.
(iv) Investments classified as Held to Maturity (other than in
Regional Rural Banks) are carried at acquisition cost. In
case the acquisition cost is higher than the face value,
the excess is amortized over the period remaining to
maturity and provision is made for:
l

Depreciation in the value of debentures / bonds which


are deemed to be in the nature of advances by applying
the RBI prudential norms of asset classification and
provisioning applicable to advances.

Diminution, other than temporary, in the value of


investments in subsidiaries / joint ventures.

(v)

Investments classified as Held for Trading are revalued


scrip-wise at monthly interval and resultant net
depreciation is recognized and net appreciation, if any,
is ignored under each classification. The book value of
the individual scrip is not changed with the revaluation
as indicated above.

(v) {

i J M E { MEi x E E
+i { G{ {xEx E Vi il {h
x E {Sx E Vi B x +vx,
n E< , E |iE MEh E +iMi vx x J

140

Vi* +M-+M G{ E >{ l=Ji


{xEx E l x ni *
(vi) G i ={v E { MEi x E i +i
{ E] G{ +Ei E Vi il {h x
E {Sx E Vi + x +vx, n E<
, E |iE MEh E +iMi vx x J Vi*
+M-+M G{ E >{ l=Ji {xEx
E l x ni *
(vii) Ij Oh E x E xvh vi Mi E
{ E Vi *
(viii) +xi{nE |ii (V V / 90 nx +vE E
B E ) Ev + E {Sx x E Vi il
|ii E i +i MEh E E{h
xnb E |M Ei B ={H |vx EB Vi il
B E +x =i{nE |ii vi +vx
Ii{i x E Vi*
(ix) x E +vOh E Mi:
+nk |ii E |{i |ix / Ex
il |E E E x *
l
Ex, n, |ii xnx E il ]{ b] E
UcE*
(x) -x tuJ x E G { -x E {Sx E
Vi * {{Ci nu;w J B M E ii x E G
{ E E E { -x Ji
Vi il ii{Si {V tIi Ji xM E
Vi *
(xi) x E V E {i Mx E B, ]E BCSV
E]x +l B.+<.B.B.b.B. / {.b.B.+<. u n
M< n E +{x Vi * < |E E E]x / n E
+ B.+<.B.B.b.B / {.b.B.+<. u lxvi
I{{Ci vh |iI E mbwra; |M Ei B V n
E {i M Vi *
(xii) E E r=Ntrl=uoNt fuU +x z h E i{ E
xxx E Vi :
l

V i{ :

V n {, V V +i + ni+ E S Ei
, E = +i +l ni i xq] { E UcE V
k h V { +l Mi V
E { Vi , ={Si +v { Vi
*
{ E xx x +l x E { E nMi
+v +l +i / ni+ E +v E { +Yi
E Vi *

]bM { :

]bM { x-nx E k h nV {ix E l


W Sxi E Vi *
6. +O :
(i) ..E u l-xvi nxn E +x +i E

(vi) Investments classified as Available for Sale are marked


to market scrip-wise at quarterly intervals and resultant
net depreciation is recognized and net appreciation, if
any, is ignored under each classification. The book value
of the individual scrip is not changed with the revaluation
as indicated above.
(vii) Investments in Regional Rural Banks are valued at
carrying cost.
(viii) In respect of non-performing securities (where interest/
principal is in arrears for more than 90 days) income is
not recognized and appropriate provision is made for
depreciation in the value of the securities by applying
prudential norms of asset classification and such
depreciation is not set-off against the appreciation in
respect of other performing securities.
(ix) Cost of acquisition of investments:
l

is net of incentives/commission and front-end fees


received in case of securities subscribed, and

excludes commission, brokerage, securities transaction


tax and stamp duty.

(x)

Profit/loss on sale of investments is recognized in the


Profit and Loss Account. An amount equivalent to the
profit on sale of investments under Held to Maturity
category is first taken to the Profit and Loss Account and
thereafter, appropriated to the Capital Reserve Account.

(xi) For the purpose of determining market value of


investments, Stock Exchange quotations or rates put up
by FIMMDA/PDAI are adopted. In absence of such
quotations/rates, the market value is determined by
applying appropriate Yield to Maturity rates as prescribed
by FIMMDA / PDAI or as per norms laid down by the
Reserve Bank of India.
(xii) As per RBI guidelines, the different categories of Swaps
are valued as under:

Hedge Swaps :

Interest rate swaps which hedges interest bearing assets or


liabilities are accounted for on accrual basis except the Swaps
designated with an assets or liability that is carried at market
value or lower of cost or market value in the financial
statements.
Gains or Losses on the termination of Swaps are recognized
over the shorter of the remaining contractual life of the Swap
or the remaining life of the assets / liabilities.

Trading Swaps :

Trading Swap transactions are marked to market with changes


recorded in the financial statements.
6.

Advances:

(i)

Advances are classified as performing and nonperforming as per guidelines prescribed by RBI and are
shown net of provisions for non-performing advances.

141

+VE il +xVE E { MEi E M il Wn


+xVE +O i |vx E x { nJ M *
(ii) il{ ..E E nxn E +x xE +O (=i{nE)
i EB MB |vx E +x niB B |vx
E M *
7. l +i + :
(i) {h i il {]] { B MB { i +x +S
+i E {{Mi Mi i< M< , Ei{ { E Uc E
VxE {xEx i< M< * {xx i +i E
Sx |hr {ri E +v { E Vi * {xx {{i
xx E Vi iE < |E |{i E + ix
{j E il { V Vn +i x * E E EU
{ E =Si lE =i-Sf nJ Vi * +iB,
- x E +Ei E Vi * il{, {
E =x n i {xx - x E Vi, VxE =Si
E +i{h {ix i *
(ii) +x

+i E +xiMi xh +v E nx B MB
{VMi E E M *

E{x +vx, 1956 E +xS XIV xvi n {


P]i |h E +x E |vx E M ,
BB{B B E{] vi x E, V
.. E E nxn E +x 33.33 % E n { v
J {ri E |vx E M *
(iv) vwlbqogtkrfU; +i E v , vwlbqogtkfUl fuU VUtJv
+iH E fUtu vwlbqogtkfUl +Ii -x
Ji +xiiE M *
(v) {]] { erbgb fUt vrhNtu"l {]] E +v ;fU
E M *
(vi) n J E l +i { E |vx = n
|Si |V Exx E +x E M *
(iii)

8. +MS +i (E{] }]) :


(i)

E{] i }] V = }] E x x S
V Ei vi b E BE +MS + il = +S
+i Z M * V }] vi b E +z M
x , E{] }] E +MS +i Z M *

Gi B MB E{] }] E E i +MS
+i E { Z M , V }] E / Mi
` 10 J +vE * Yume ydtuah ytr;gt fUt vrhNtu"l 10
JMo fUe yr"fU;b yJr" fuU yg"el, WmfUe CtJe ytgw ;fU
rfUgt st;t ni>
9. ES :
(i) ES E E v +{x ni+ E +Yx i
E x i xn JE lx u V J xE
15(vi) ES E |M E *

(ii) The provision made for standard advances (performing)


in terms of RBI guidelines is however included in Other
Liabilities and Provisions.
7.

Fixed Assets and Depreciation :

(i)

Premises including Freehold and other Fixed Assets are


stated at historical cost except certain Premises, which
are stated at their revalued amount. Selection of assets
for revaluation is based on a systematic basis.
Revaluation is made with sufficient regularity to ensure
that the carrying amount does not differ materially from
the market value at the Balance Sheet date. Some of the
premises of the Bank experience significant and volatile
changes in fair value, thus necessitating frequent
valuation. However, such frequent valuation is not done
for items of premises with only insignificant changes in
fair value.

(ii)

Capital expenditure incurred during construction period


is included under Other Assets.

(iii) Depreciation is provided on diminishing balance method


at the rates prescribed in Schedule XIV to the Companies
Act, 1956 except that in respect of ALPMs & Computers,
where depreciation is provided on straight line method
@ 33.33% as per RBI guidelines.
(iv) In respect of revalued assets, the amount of additional
depreciation consequent to revaluation is transferred from
Revaluation Reserve to the Profit & Loss Account.
(v)

(vi) Depreciation on Fixed Assets of foreign branches is


provided as per the applicable laws prevalent in that
country.
8.

Intangible Assets (Computer Software) :

(i)

Software for a computer that cannot operate without that


specific software is an Integral part of related hardware
and is treated as fixed assets. Where the software is not
an integral part of the related hardware, Computer
software is recognised as an Intangible Asset.

(ii)

Computer software acquired from vendors is recognised


as Intangible Asset only if the value /cost of the software
is more than `10 Lakhs. Such intangible assets are
amortised over its effective life subject to a maximum
period of ten years.

9.

Employee Benefits:

(i)

The Bank has applied Accounting Standard 15(Revised)


- Employees Benefits, issued by the Institute of Chartered
Accountants of India, for recognition of its liabilities in
respect of employee benefits.

(ii)

Liability towards long term defined employee benefits


Pension, Gratuity, Leave Encashment, Leave Fare
Concession and Sick Leave are determined based on
actuarial valuation by independent actuaries at the year
end by using Projected Unit Credit method. Liability so

(ii)

(ii)

Premium on leasehold land is amortized over the period


of the lease.

nPEE xvi ES E ni - {x, OS],


+E xEnEh, +E E i, U]] E
142

xvh |VC]b x] Gb] {ri E |M E E +i


ij EE u EE x { xE Vi * <
|E xvi ni {x + OS] E xvE
+ +x <E B |vx E Vi *
(iii)

(iv)

(v)

xv E v +v i EB MB +nx E E
{ +Yi E Vi + -x Ji |i
E Vi *
+{EE ES E, |nx EB Vx E
x tuFt , M-]]Ei { E { +Yi
E Vi *
SUE xk Vx ( + B) E ii OS] il
{x vi +xO il +iH +nx i E
..E E nxn E +x {S E +v {vi
+lMi V E { x M *

10. V +Yx :
xxJi E UcE + il E J ={Si +v {
E M :
(i) +x{V +i E { MEi +O { V il +x
+ E iE x M *
(ii)

(iii)

+ E il V E E { { V + E,
vi E xvh +vE u {i +n E i J
E M *
VUtttuyptl mtJosrlfU rldob fUtu yt:rd; htsJ gg btlt Vi
ni ytih Rmu vtka JMtu b vrhNtur"; rfUgt Vi ni*

determined is funded in the case of Pension and Gratuity,


and provided for in other cases.
(iii) In respect of Provident Fund, the contribution for the period
is recognized as expense and charged to Profit & Loss
account.
(iv) Short term employee benefits are recognized as an
expense at an undiscounted amount in the Profit and Loss
Account of the year in which the related services are
rendered.
(v)

Expenditure towards ex-gratia and additional contribution


in respect of gratuity and pension under Voluntary
Retirement Scheme (VRS) is treated as Deferred
Revenue Expenditure amortized over a period of five years
in terms of RBI guidelines.

10.

Revenue Recognition :

Income and Expenditure are accounted for on accrual basis


other than those stated below:
(i)

Interest and Other Income on advances classified as nonperforming assets are recognized to the extent realized.

(ii)

Income from interest on refund of Income Tax and Interest


Tax are accounted for in the year the order is passed by
the concerned assessing officer.

(iii) Expenditure on Follow on Public Offer is considered as


Deferred Revenue Expenditure and is amortised over a
period of five years.
11.

Lease :

Rentals received by the Bank are recognized in the profit and


loss account on accrual basis.

11. {]] :
E u |{i EB E ={Si +v { -x J +Yi
E Vi *
{Sx {]] { M< +i i {]] E Mix -x
J E { +Yi E Vi *
12. |i +Vx :
|i <C] E + b<]b +Vx E {] i
xn JE lx u V J xE 20 |i +Vx
fuU ylwmth fUe st;e ni> |i <C] E +Vx E Mhx
+v i E <C] E i +i J x +
E M EE E Vi * |i <C] b<]b +Vx E
Mhx <C] E i +i J + E nx
E b<] <C] E |M E E Vi *
13. Evx :
(i) E i |vx S E (xxi E{E E-] i) +
+lMi E, nxt i E Vi * S E E |vx
|V E n + E fUtlqlt E |M EE E Vi *
+i E Eh =i{z +lMi E +i + niB,
V {i +v |iix E M , ix {j E il iE

Lease payments for assets taken on operating lease are


recognized as an expense in the profit and loss account.
12. Earnings Per Share :
Basic and Diluted Earnings per Equity Share are reported in
accordance with the Accounting Standard 20 Earnings per
share issued by the Institute of Chartered Accountants of India.
Basic earnings per equity share are computed by dividing net
income by the weighted average number of equity shares
outstanding for the period. Diluted earnings per equity share
are computed using the weighted average number of equity
shares and dilutive potential equity shares outstanding during
the period.
13. Taxation :
(i)

143

Provision for tax is made both current Tax (including


Minimum Alternate Tax MAT) and deferred taxes. Current
tax is provided on the taxable income using applicable
tax rate and tax laws. Deferred Tax Assets and Liabilities
arising on account of timing differences and which are
capable of reversal in subsequent periods are recognised
using the tax rates and the tax laws that have been enacted
or substantively enacted till the date of the Balance Sheet.
Deferred Tax Assets are not recognised unless there is

xB MB n xB Vx E Exx + E n E
|M EE +Yi E Vi * +i E +Yx i iE
x E Vi V iE E i xSi E {{i
EM + ={v M V B +lMi E
+i E VBM*
gql;b JifUrvfU fUh (bix) sbt fUtu ytr;gt vh fuUJt ;c ne
YJk Wm mebt ;fU yrCtt; rfUgt st;t ni sc Yumt Xtum btK ntu
rfU fkUvle xvi yJr" fuU =tihtl mtbtg ytgfUh fUt Cwd;tl
fUhude>
14. xEn B i xEn :

virtual certainty that sufficient future taxable income will


be available against which such deferred tax assets will
be realised.
(ii)

(ii)

Minimum Alternate Tax (MAT) credit is recognized as


assets only when there is convincing evidence that the
company will pay normal income tax during the specified
period.

14. Cash and Cash equivalents :


Cash and cash equivalent include cash on hand and in ATMs
and balances with RBI.

xEn B i xEn l xEn + B]B xEn il


i W E *
15. +S +i ({xEi +i i) { '<{]
+ ' E +Yi E M il i xn
JE lx u V J xE 28 '<{] +
' E +x -x Ji |i E Vi *

15. Impairment of Losses (if any) on Fixed Assets (including


revalued assets) are recognized and charged to Profit &
Loss Account in accordance with the Accounting Standard
28 Impaired of Assets issued by The Institute of
Chartered Accountants of India.

16. +EE niB il |vx + +EE +i

(i)

In conformity with AS 29. Provisions, Contingent


Liabilities and contingent Assets, issued by the Institute
of Chartered Accounts of India, the Bank recognizes
provisions only, when it has a present obligation as a
result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required
to settle the obligation, and when a reliable estimate of
the amount of the obligation can be made.

(ii)

No provision is recognized for :

a)

Any possible obligation that arises from past events and


the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Bank; or

b)

Any present obligation that arises from past events but is


not recognized because

i)

It is not probable that an outflow of resources embodying


economic benefits will be required to settle the obligation;
or

ii)

A reliable estimate of the amount of obligation cannot be


made. Such obligations are recorded as contingent
Liabilities. These are assessed at regular intervals and
only that part of the obligation for which an outflow of
resources embodying economic benefits is probable, is
provided for, except in the extremely rare circumstances
where no reliable estimate can be made.

(i)

(ii)

E)

J)
i)

ii)

iii)

i xn JE lx u V J xE 29
'|vx, +EE niB B +EE +i' E +x{
E |vx i +Yi Ei V E {U P]x E
{h{ ix ni =i{z i +
E +lE vx E | ni E
vx i +{Ii M + V ni E E
x +xx E V Ei *

16. Contingent Liabilities and Provisions & Contingent


Assets :

xxJi E B |vx +Yi x E M :


{U P]x+ =i{z E< i ni + VE
+ii = P]x E x +l x x { x EM
+l E B +xSi P]xB V {hi E E
xjh x *
E< ix ni V {U P]x+ =i{z + =
+Yi x E M CE :
x E +lE vx E |
ni E vx i +{Ii M
+l
ni E E x +xx x E V Ei
* B ni E +EE ni+ E { nV E
Vi * <xE xi +i { xvh E Vi
+ ni E E = M E B |vx E Vi
VE B +lE vx E | ,
=x +ii +vh {li E UcE V ni E
E x +xx x E V Ei *
k h +EE +i E +Yi x E
M CE <E {h{ B + E +Yx
Ei V E x V Ei*

(iii) Contingent Assets are not recognized in the financial


statements as this may result in the recognition of income
that never be realized

144

Ei k h {
J ]{{h
1. (i)

2. (i)

NOTES ON ACCOUNT TO CONSOLIDATED


FINANCIAL STATEMENTS

i V E ( E) E nxn E +x{ ={V


il +x{V +O i {{i |vx E M *

1. (i) Adequate provision has been made in respect of


Performing and Non-performing Advances in terms
of Reserve Bank of India (RBI) guidelines.

+i J Vx E |] E x +
vx v E |Mi { B JE z J
x + V |] E 31.03.2012 iE |E
x E n M * J v i +i vx,
{h |, n E< , |vx E i{h x M*

2. (i) Reconciliation and clearance of outstanding entries


in Inter Branch adjustments are in progress and
especially initial matching of debit and credit entries
in various heads have been done upto 31.03.2012.
Pending final clearance, the overall impact, if any, on
the accounts, in the opinion of the management will
not be significant.

EU J+ V, +O B x] Ji E v h
E i/Ji E x/vx E E |Mi { * =H
Ij < {{i |Mi E qxV |vx E +i E E
E J { vx E |, +M i, iiE x M*
={H Ij {{i |Mi E nJi B |vx E x E
E E Ji { vx E |, n , i{h x
M*
(iii) . . . E xn E +x, 330 J+ E v
z CiMi B +CiMi J {x +i, V
E ` 141.39 Ec x @h , |vx E E lxii
E n M l B +EE J-x J M
l* .. x <x 330 J+ E, B J+ E
{ , ix { E E i h {] x Ex
E +xi n * |vx E +i E E E J { <x
n/ vx E |, +M i, iiE x M*
(ii)

3.

ni z xE xh { S Ex E
n +E i E u ` 2123.57 Ec ({U
` 1834.76 Ec) (+lMi E i) E |vx {{i
x M*

(ii) At some branches, preparation of details / balancing


/ reconciliation of accounts relating to Balances with
Banks and NOSTRO Accounts are in progress. Since
substantial progress has made in the above areas,
the management is of the view that the impact of
reconciliation, if any, on the accounts of the Bank will
not be material.
(iii) In terms of RBI directives, old difference in various
Personal and Impersonal Account heads in respect
of 330 branches aggregating net credit of `141.39
Crores was transferred to Head Office and kept in
Contingency Account- General. RBI has further
permitted not to report these 330 branches as arrear
carrying branches in Banks quarterly statement on
Balancing of Books. The management is of the view
that the impact of these items /reconciliation, if any,
on the accounts of the Bank will not be material.
3.

The provision for income tax (including deferred tax)


aggregating to `2123.57 Crore (previous year
`1834.76 Crore) held is considered adequate after
taking into consideration various judicial decisions
on disputed issues.

4. (i) 31.03.1997, 31.03.2005 il 31.03.2007 E {i


B Ei{ { E {xEx +xni EE
E {] E +v { E M + G: ` 125.99 Ec
(hVE B +), ` 370.08 Ec (hVE B
+) il ` 298.32 Ec (hVE) E =vM
vx E {xx +Ii E V E M* |iE
{xEi { { E {Ex +Ji
{ E Vi * {xEx E Eh ` 4.24 Ec
(Mi ` 4.45 Ec) E +iH E {V
+Ii +ii E +xS .14 n (vii) "+x
+' E +iMi v + n M *

4. (i) Certain premises were revalued on the basis of the


reports of the approved valuers during the year ended
on 31.03.1997, 31.03.2005 and 31.03.2007 and
upward revision amounting to ` 125.99 Crore
(commercial and residential), ` 370.08 Crore
(commercial and residential) and ` 298.32 Crore
(commercial) respectively had been credited to
Revaluation Reserve. Depreciation on Revalued
premises is worked out each year on its written down
value. Additional depreciation of ` 4.24 Crore (previous
year ` 4.45 Crore) due to revaluation has been
transferred from Revaluation Reserve Account and
shown in Miscellaneous Income under the head
Other Income included in Schedule No. 14 item (vii).

V Jb E Mi ={v x , B +I
Jb il x E Mi { xvi E M *

(ii) Depreciation has been charged on composite cost


of Land and Building, where separate cost of land is
not available.

(ii)

145

V Mi ={v x {]] +v i {]]vi


{ | E {vx Mi +v { +l +Ji
{ E M *
(iv) xxJi {k E {VEh +{SEiB + { E
Vx :

(iii) Premium on leasehold land has been amortized over


the period of lease, based on cost or written down
value, where original cost is not available.

(iii)

E.

1990 + 1998 E nx EEi B x G:


29 + 10 ] 2 + {k VxE Mi
` 0.86 Ec ({U ` 0.86 Eb) *

J.
M.
(v)

(iv) For the following properties registration formalities


are yet to be completed:
a.

+xn E, x<n BE {]]vi {k VE


Mi ` 0.09 Ec ( {U ` 0.09 Ec)*

2 residential properties purchased during the year


1990 & 1998 at Kolkata & Bhubaneshwar consisting
of 29 & 10 flats respectively with total original cost of
` 0.86 Crore (Previous year ` 0.86 Crore).

b.

1 leasehold property at Anandlok, New Delhi with


original cost amounting to ` 0.09 Crore (previous year
` 0.09 Crore).

k E nx Sz< B nn n -{k Jn M<*

c.

2 landed properties purchased during the financial


year at Chennai & Hyderabad.

+i +i i +x +i E h xxi :

(v) Other Assets include intangible assets, details of


which are as under.

(` Ec )/(` In crore)

h /
+l

Particulars

\ Opening Balance

E nx {vx \ Additions during the year


E nx {vi \ Amortized during the year
<i \ Closing Balance
5. (i)

(ii)

(iii)

(iv)

61.25 Ec (Mi ` 0.44 Ec) E +Ei E


x E v E E + G{/]E] |{i Ex
*

5.

2011-12

2010-11

35.59

20.05

3.08

19.19

4.94

3.65

33.73

35.59

(i) In respect of Investments of face value of ` 61.25


Crore (Previous year ` 0.44 Crore) the Bank is yet to
receive scrips / certificates.

, {ix bS il <C] Vc S+ b/
S E{] b E x] i E {I +O
E x ` 1045.18 Ec (Mi ` 770.89 Ec)
*

(ii) Total Investments made in shares, convertible


debentures and units of equity linked mutual fund /
venture capital funds and also advances against
shares aggregate to `1045.18 Crore (Previous year
` 770.89 Crore).

i V E E nxn E +x ` 23.00 Ec
(Mi x) E , V E 'b ] S]' h
|ii E G x E x , E {V
|Ii Ji +ii E M *

(iii) As per RBI guidelines, an amount of ` 23.00 Crore


(Previous Year NIL) being an amount equivalent to
post tax profit on sale of Held to Maturity category
securities is transferred to Capital Reserve Account.

V E i{h J xi J 3(C)(i), =Ji ,


'b ] S]' h E E nx {vi
|ii E +Ei E >{ ` 61.26 Ec (Mi
` 83.33 Ec) E +iH +Vx Mi il V x
{ + P]E ..E E xnx -x Ji E
'x +' xvx E {xx x E {
n M *

(iv) In respect of Held to Maturity category as stated in


significant Accounting Policy No. 3 (C)(i), the excess
of acquisition cost over the face value of the security
amortised during the year amounts to ` 61.26 Crore
(Previous year ` 83.33 Crore) has been netted-off
from interest on investments and shown under
Income from Investments in Profit and Loss
Account in terms of RBI direction.

146

6.

E x E nx Vx ]bM E B E< k{h x


E + x E +i E |iiEh E *
7. E nx E x i Vx xM (B+<) i
<E z Vx+ E +vx +]x +v { ` 182.94/
- |i E | { |iE ` 10/- E 2,38,10,771
<C] , V E ` 459.40 Ec (MM) , V E*
` 459.40 Ec (MM) ` 23.81Ec (MM)
{V Ji B ` 435.59 Ec (MM) | Ji
V E M*
8. J xE E +x{ +x{x

8.1

6.

The Bank has not made any financing for margin trading
during the year and also not securitised any assets.

7.

During the year, Bank has issued 2,38,10,771 equity


shares of `10/- each at a premium of `182.94 per share
amounting to ` 459.40 Crore (approx.) on preferential
allotment basis to Life Insurance Corporation of India
including its various schemes (LIC). Out of ` 459.40
Crore, ` 23.81 Crore (approx.) credited to Share Capital
Account and ` 435.59 Crore (approx.) to Share Premium
A/c.

8.

Compliance with Accounting Standards

E x i xn JE lx u V xxH J
xE (BB) E +x{x E il B J xE E
|vx E +x xxH |E]Eh E V *

The Bank has complied with the following Accounting


Standards (AS) issued by the Institute of Chartered
Accountants of India and the following disclosures are
made in accordance with the provisions of such
Accounting Standards.

J xE 5 : ''+v i x +l x, { E
n il J xi''
{ vi + + E h xxx :

8.1. Accounting Standard 5 Net Profit or Loss for the Period,


Prior Period items and Changes in Accounting Policies"
Income and Expenditure relating to prior period are as
under:

(` Ec )/(` In crore)

h /

S /Current Year

Particulars

+ \ Income
\ Expenditure

x / Net

8.2. E x ES l {x, OS], +E xEnEh,


BB + U]] E v +{x ni+ E
+Yx i i xn JE lx u V J
xE 15 (BB 15) (vi) E +{x *
8.3. xvE/M-xvE ES l, {x (B{<+), OS],
+E xEnEh, B.B.. + +E E v
E E ni E
(E)

1.29

(0.03)

4.01

(1.57)

(2.72)

The Bank adopted Accounting Standard 15 (Revised)Employee Benefits, issued by Institute of Chartered
Accountants of India, for recognition of its liabilities in
respect of employee benefits, viz, Pension, Gratuity,
Leave Encashment, LFC and Sick Leave.

8.3.

Banks liabilities in respect of the funded/ non-funded


employee benefits, viz., Pension(ABEPR), Gratuity,
Leave Encashment, LFC and Sick Leave are
recognised on the basis of actuarial valuation carried
out by approved Actuary as per
(a) Principles laid down in AS 15 (Revised) issued
by the Institute of Chartered Accountants of India,
and

(J)

8.4

(1.60)

8.2.

i xn JE lx u V J
xE 15(vi) xvi ri +

i EE lx u V nxn VBx
26 E +x +xni EE u Ex Ex
E +v { +Yi E Vi *
vi {IE E |E]Eh - J xE (BB) 18 vi
{] E S B xnx

Mi /Previous Year

(b) Guidelines GN 26 issued by Institutes of


Actuaries of India.
8.4. Related Party Disclosures Accounting Standard (AS)
18: List of Related Parties and Transactions

vi {] E x, E E l =xE v il EB MB
xnx*

147

The names of the related parties, their relationship with


the bank and transaction effected.

(` J ) / (` in Lacs)
GE

{nx

Sl. No.

Name

Designation

31.3.2012

fUtu g:tr:r; J;obtl rl=uNfU

Shri J. P. Dua

b. E

Shri D. Sarkar
3

Current Year

Previous Year

Chairman & Managing Director

23.04

20.37

/ Existing Directors as on 31.3.2012

V. {. =qyt

{v /
Remuneration

+vI B |v xnE
E xnE

B. +. xE

E xnE

Executive Director

19.46

13.57

Shri M. R. Nayak

Executive Director

19.46

12.72

9.10

13.03

. {. xnE / Ex Directors
1

|n +EE

|v xnE B <+ + E <x .

Shri Prasad Akolkar

Managing Director and CEO


of AllBank Finanace Ltd.

OS] il +E xEnEh vi E xvh O


E{x E +v { E { EE |h u E Vi
il inx = ={H Sx x M *

Expenses towards gratuity and leave encashment are


determined actuarially on an overall company basis annually
and accordingly have not been considered in the above
information.

+xM E{x x { Vx <x E. . E l EB


MB xnx E h xxEi :

h \

Transactions with associate company Universal Sompo


General Insurance Company Limited. are as follows:

(` Ec )/(` In crore)
S /Current Year

Particulars

+Vi + \ Income Earned


|nk | \ Insurance Premium Paid
+xM E{x :
i) +E <xx ]b ({h i )
H =t :
i) x { Vx <xx E{x .
ii) BB+<(<b) .

Mi /Previous Year

8.03

7.42

7.73

6.57

Subsidiary:
i)

All Bank Finance Limited (wholly owned)

Joint Venture:
i)

Universal Sompo General Insurance Company Limited

ii) ASREC (India) Ltd.

BB] :

Associates:

i)

<n { Oh E*

i)

ii)

n Oh E

ii) Sharda Gramin Bank

E E =H Ij Oh E E E 35 % E , +
x { Vx < E{x 30% E *

Allahabad U P Gramin Bank

The Bank is holding 35% shares of the above Associated


Regional Rural Banks and 30% shares of Universal Sompo
General Insurance Company limited.

148

+xM B BB] E l xnx E J (BB) -18 E


vi {IE |E]Eh E { 9 E vx Ji B x E
M V V u xji =t E =x +x vi {IE E
l =xE xnx vi J Ex H Ei V V
u xji *
{]] |E]Eh :

The transactions with the subsidiaries and associates have


not been disclosed in view of para 9 of the (AS)-18 Related
Party Disclosure, which exempts state controlled enterprises
from making any disclosure pertaining to their transactions
with other related parties which are also state controlled.

E) E E { E / + v+ E B z {]]
* < v xxi |E]Eh E Vi :

A)

The Bank has various operating leases for office /


residential facilities. Disclosures in this regard are as
under:

i)

The total of future minimum lease payments under


non-cancelable operating leases for each of the
following periods:

xxJi |iE +v i xi x E Ex {SxMi


{]] E +iMi xxi {]] Mix E M :

i)

31.03.2012 E lli +{i {]] +v i n E*

Lease Disclosure:

Rent payable for unexpired lease period as on 31.03.2012

(` Ec )/(` In crore)
Vn {]] +v

n / Amount Payable
S /Current Year Mi /Previous

/ Existing Lease Period

Year

BE +xvE / Not later than one year


BE E n il {S +xvE / Later than one year and not later than five years
{S E n / Later than five years
<E +xM E v , {]] J xE |V x CE
E{x x 01.04.2001 E n E< {]] Ei x E *
ii)

iii)

iv)

ix {j E iJ E xi x E Ex ={ {]] E
+iMi |{i EB Vx |ii xxi ={ {]] E
Mix E M : x ({U : x)
vi +v i B x E h +Yi {] ]
Mix : ` 76.02 Ec ({U ` 60.75 Ec)
vi +v i B x E h +Yi |{i
(+l |{) ={-{]] E Mix :x ({U : x)

46.13

32.96

97.77

110.25

41.90

29.99

In respect of its subsidiary, lease accounting standard is not


applicable since the Company has not sanctioned any lease
after 01.04.2001.
ii)

The total of future minimum sublease payments


expected to be received under non-cancelable
subleases at the balance sheet date: Nil (Previous Year:
Nil)

iii)

Lease payments recognised in the statement of profit


and loss for the period: ` 76.02 Crore (Previous Year: `
60.75 Crore)

iv)

Sub-lease payments received (or receivable)


recognised in the statement of profit and loss for the
period: Nil (Previous Year: Nil)

J) k {]] :

B) Financial Lease:

E E { k {]] E +iMi E< {k x *

Bank is not having any assets under Financial Lease.

G .

Sl No.

Particulars

(` Ec )/(` In crore)
Mi

Current Year

Previous Year

39.14

32.22

|i + b<]b +Vx
Basic and Diluted Earning Per Share (Rs.)

149

8.5. |i +Vx : J xE (BB) 20:

8.5. Earning Per Share Accounting Standard (AS) 20:

8.6

8.6.

+ { E i J - J xE (BB) 22

E nx +lMi E i E Vx E { ` 18.35
Ec(x) ({U ` 51.88 Ec) E B x Ji
V E M* ix {j E iJ E lli +lMi E
+i / ni+ E J P]E ix{j E il E +x
xxi :

Accounting for Taxes on Income: Accounting


Standard (AS) 22
During the year, an amount of ` 18.35 Crore (Net) (Previous
year ` 51.88 Crore) has been credited to the Profit & Loss
Account by way of adjustment of deferred tax. The major
components of Deferred Tax Assets/ Liabilities as on Balance
Sheet date are as under:

(` Ec )/(` In crore)

h /

Particulars

E |

Vx Vc/(P])

E +i

At the beginning
of the Year

Adjustment
Add/(Less)

At the close
of the Year

attq JMo

d; JMo

attq JMo

d; JMo

attq JMo

d; JMo

C. Yr.

Pr. Yr.

C. Yr.

Pr. Yr.

C. Yr.

Pr. Yr.

Nil

Nil

10.50

Nil

10.50

Nil

4.69

1.23

4.56

3.46

9.25

4.69

0.00

3.66

Nil

(3.65)

Nil

0.00

Nil

Nil

3.29

Nil

3.29

Nil

0.00

0.54

52.01

(0.54)

52.01

0.00

4.69

5.43

70.36

(0.73)

75.05

4.69

Nil

Nil

Nil

Nil

Nil

Nil

80.55

28.81

Nil

51.74

80.55

80.55

+lMi E +i / Deferred Tax Assets


+E xEnEh i |vx /
Provision for Leave Encashment

U]] i |vx /
Provision for Sick Leave

vNl (vwhtle) nu;w tJvx /


Provision for Pension(old)

BB i |vx / Provision for LFC


+x / Others
E / Total
+lMi E niB / Deferred Tax Liabilities
+S +i E /
Depreciation of Fixed Assets

x E { vi |ii { ={Si Ei +n V
Interest Accrued but not due on securities
held as Investments

+x / Others
E / Total
+lMi E niB (x) /

0.00

0.59

52.01

(0.59)

52.01

0.00

80.55

29.40

52.01

51.15

132.56

80.55

Deferred Tax Assets (Net)

75.86

23.97

18.35

51.88

57.51

75.86

cfU YaxeYb uKe fuU rlJuNt vh yt:rd; fUh +Yi lne E


mfU;t gtrfU cfU fuU rJath Rm v b mbg b fUtuRo yk;h lnek ni>
rlJuNt vh yt:rd; fUh fuU +Yx vh Cth;eg ml=e tuFtfUth
mk:tl fUe rJNuMt mttnfUth mrbr; fuU rJath fuU ylwmth, cfU lu Rm
bwu fUtu Cth;eg cfU mkD fuU vtm btdo=Nol nu;w Cust ni gtrfU Wtud
sd; b Rm rJMg vh fUtgoJtne fUhlu b fUtVUe rCt;tYk ni>

The Bank does not recognise deferred tax on HTM category


of investments as in its opinion; there is no timing difference
in this regard. Pursuant to the opinion of the Expert Advisory
Committee of the Institute of Chartered Accountants of India
on recognition of deferred tax on investments, the bank has
referred the issue to the Indian Banks Association for their
guidance on the matter since there is a difference in treatment
on this subject in the industry.

150

8.7

'k +i E { E E +i E {{i + {
J xE (BB) 28 '<{] + B] ' |V x
* |vx E =H xE E +x 31.03.2012 E
E E +x +i E< <{] x + =Ci xE
E +x +Yx i E< i{h i x

8.7. A substantial portion of the banks assets comprise of


financial assets to which Accounting Standard (AS) 28
Impairment of Assets is not applicable. In the opinion
of the management, there is no impairment of other
assets of the Bank as at 31.03.2012 to any material
extent requiring recognition in terms of the said
standard.

8.8

'|vx, +EE niB + +EE +i' E v


J xE (BB)29 E +x |E]Eh

8.8. Disclosure in terms of Accounting Standard (AS) 29 on


Provisions, Contingent Liabilities and Contingent
Assets:

ni+ i |vx E Sx (<i ) :

Movement of Provision for Liabilities (Closing Balance):

E lli

rJJhK /
Particulars
(a)
(b)
(c)
(d)
(e)
(f)
(g)

As on 31.03.2012

YlveY nu;w tJ"tl / Provision toward NPA


rlJuN vh bqgtm nu;w tJ"tl / Provision for Depreciation on Investment
btlfU ytr;gt nu;w tJ"tl / Provision towards Standard Assets
ytgfUh nu;w tJ"tl / Provision towards Income Tax
yt:rd; fUh ytr; / =ug;t / Deferred Tax (Assets) / Liabilities
ylwMdk e ttC fUh / Fringe Benefit Tax
yg / Others
fwUt / Total

8.9.Jb

(` Ec )/(` In crore)
E lli
As on 31.03.2011

967.28

863.55

486.91
509.81
2066.06
57.51
26.04
569.11
4682.72

297.78
362.57
1830.53
75.86
26.04
1112.19
4568.52

Sx : J xE (BB) 17 / Segment Information: Accounting Standard (AS) 17


(` Ec )/(` In crore)

Jb
Business
Segments

Corporate/
wholesale
security

Treasury

attq JMo
rJJhK / Particulars
htsJ / Revenue
vrhKtb / Result
tJ"tl / Provisions
vrhattl ttC

fUthvtu h u x /:tu f U
r;Cqr;gtk

]V

d; JMo attq JMo

rhxut crfUkd

yg crfUkd
gJmtg

fw U t

Retail Banking

Other Banking
Operation

Total

d; JMo attq JMo

d; JMo attq JMo d; JMo attq JMo

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

4165.92

2983.70

8180.04

5746.27

4230.84

3311.65

256.03

430.61

16832.83

12472.23

154.85

261.07

1715.95

1164.49

1675.31

1320.78

222.55

327.41

Operating Profit

ytg fUh / Income Taxes


ymt"thK ttC/ntrl
Extraordinary profit / loss

d; JMo

Cr.Yr.

rlJt ttC / Net Profit


yg mqalt:

3768.66

3073.75

1606.97

1123.84

2161.69

1949.91

296.18

510.38

1865.51

1439.53

Other Information:

FkzJth ytr;gtk
Segment Assets

55047.35 43973.88 94180.67 77154.26 32508.83 29009.98

376.33

321.57 182113.17 150459.69

dih ytckrx; ytr;gtk


Unallocated assets

1197.72

151

1148.23

(` Ec )/(` In crore)
Jb
Business
Segments

Cr.Yr.

d; JMo attq JMo


Pr.Yr.

Retail Banking

d; JMo attq JMo

Cr.Yr.

yg crfUkd
gJmtg

fw U t

Other Banking
Operation

Total

rhxut crfUkd

Corporate/
wholesale
security

Treasury

attq JMo
rJJhK/ Particulars
fwUt ytr;gtk

fUthvtu h u x /:tu f U
r;Cqr;gtk

]V

Pr.Yr.

Cr.Yr.

d; JMo attq JMo


Pr.Yr.

d; JMo

attq JMo

d; JMo

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Total assets

183310.89 151607.92

FkzJth =ug;tYk
Segment liabilities

52227.73 41818.46 89356.57 73372.47 30843.67 27683.56

164.07

0 172592.03 142874.49

dih ytckrx; =ug;tYk


Unallocated liabilities

10718.86

8733.43

fwUt =ug;tYk
Total liabilities

Ctd F:CtidturtfU Fkz

183310.89 151607.92

/ Part B: Geographic Segments:

Dhu tq

yk ; hhtx[ e g

Domestic

htsJ / Revenue
ytr;gtk / Assets

(` Ec )/(` In crore)
fw U t

International

Total

attq JMo

d; JMo

attq JMo

d; JMo

attq JMo

d; JMo

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

Cr.Yr.

Pr.Yr.

16648.85

12401.21

173.11

71.02

16832.83

12472.23

17956.72

147978.13

6354.18

3629.79

183310.89

151607.92

Jb Sx { ]{{h :

Ei Jb {]M +xM E{x, BE M-EM l
E E + E { x M *

Notes to Segment Information:




The business of the subsidiary company, a nonbanking entity has been considered as residual
business in consolidated segment reporting.

For the purpose of segment reporting in terms of AS 17


issued by the Institute of Chartered Accountants of India
and RBI guidelines thereon, the business of the bank
has been classified into three segments, viz.

i xn JE lx u V J xE BB17
+ = { E nxn E +x{ M] {]M E
|Vx E E E S Jb MEi E M
+li
o ] V {Sx
o E{]/lE EM
o ] EM
o +x EM
ME Jb E (E) P + (J)+i] Jb MEi
E M *
vE +{I+ +vE BB+ |ii x +
M BB+ |ii x E ] V {Sx x
x M *
E Jb v Vb , +i + ni+ E
vi Jb E +]i E Vi + V E< n v
Jb E |ii x Ei =x |vi E +x{i
+]i E M *

Treasury Operations,

Corporate / Wholesale Banking

Retail Banking

Other Banking business

Geographical segment has been classified as (a)


Domestic and (b) International.

Investment in SLR securities in excess of statutory


requirements and investment in non-SLR securities
have been considered as investment for Treasury
Operations.

Expenses, assets and liabilities directly attributed to


particular segment are allocated to the relative segment
and wherever the items are not directly attributable to
specific segment the same has been allocated in
proportion to business managed.

152

9. +EE niB:

9.

ix {j E +xS 12 E G J (I) (VI) l=Ji


B niB G: x/+]x/x E x{]x
E {h, +{ E x{]x, M E M< , nMi
vi+ E i, P]xG + vi {IE u E M<
M { x * +E <x . E +EE ni+
vi +iH ]{{h xxx :

Contingent Liabilities
Such liabilities as mentioned at Sl. No.(I) to (VI) in
schedule 12 of Balance Sheet are dependent upon
the outcome of court / arbitration / out of court
settlement, disposal of appeals, the amount being
called up, terms of contractual obligations, devolvement
and raising of demand by concerned parties
respectively. Additional comments in respect of
contingent liabilities of AllBank Finance Limited are as
follows:

z +{ |vEh E I i E v
ni +E V E{x E ` 8.72 Ec ({U
`8.00 Ec ) E E |{i x E x * 31.03.2012
E lli ` 10.70 Ec ({U ` 8.89 Ec) E
+O E, i { E] MB E + |{ +E b
E { n< M< * Exvh + +{ E z
Sh Vx i i *

Disputed Income Tax in respect of matters pending


before various appellate authorities where the
Company expects to succeed amounts to ` 8.72 Crore
(Previous Year ` 8.00 Crore). As on 31.03.2012, ` 10.70
Crore (Previous Year ` 8.89 Crore) have been shown
as advance income tax, tax deducted at source, and
income tax refund receivable. This amount is pending
adjustment at various stages of assessment and
appeal.

E{x E r @h E { +Ei x EB MB n:
` 11.76 Ec ({U ` 11.76 Ec)

Claims against the Company not acknowledged as


Debts : ` 11.76 Crore (Previous Year `11.76 Crore)

10. + E <x . E v xx x E
+nx, . .. n< u 13.05.1992 E + E
<x . E { MB E E E {I {k
E {h +ih x M * inx, E {nM E
iJ E E x M + =E n =x
{ Pi i ={S + +vE { <E E *
={H +n E {h{ E +Vx E nPv
x x M

10.

In respect of AllBank Finance Limited, as per the order


of Honble Special court, the delivery of shares on
13.05.1992 by M/s V. B. Desai to AllBank Finance Ltd.,
constituted complete transfer of property in the shares
in favour of the Bank. Accordingly, the Bank became
the owner of the shares from the date of delivery of the
shares and was entitled to all accretions and rights
declared thereafter. Pursuant to the above-mentioned
order, the acquisition of the shares has been
considered as long term investment.

11. {VMi Ji { x{nx i n E +xxi


VE |vx x E M (x +O) ` 110.46
Ec (Mi ` 41.84 Ec) *

11.

Estimated amount of contracts remaining to be


executed on capital account and not provided for (Net
of Advance) ` 110.46 Crore (Previous Year ` 41.84
Crore).

12. +x{V +i E +iMi vi |vx E Ij E+{


E E +O +xxi +v { P] n M iE
ix{j E +xS 9 lH x +O E xE
E*

12.

Sector wise break up of provision held under nonperforming advances is deducted on estimated basis
from gross advances to arrive at the balance of net
advances as stated in the Schedule 9 of the Balance
Sheet.

13. V +E Z M Mi E +Ec E {x:i


{x:MEi E M *

13.

Figures of previous year have been regrouped or


reclassified wherever considered necessary.

153

<n E, <E +xM il <E i BB] B H =t E Ei


k h { J{IE E {]

,
xnE b
<n E
1. x lli 31 S, 2012 E <n E (E), <E +xM + BB] B H = t () E Mx ix{j il
= iJ E {i i Ei B x J + Ei lfU=e Jtn rJJhKe E VS E V xxJi :
i)
u J{I EB MB E E J{Ii J*
ii) +x J{IE u J{Ii BE +xM + n BB] E J{Ii J + n H =tbt E +J{Ii J*
<x k h E =kni E E |vx E + <x |vx u {lE k h il <E P]E vi +x k
Sx+ E +v { i E M *
2. ni +{x J{I E +v { <x k h { +{x H Ex * x i xi& E J xE
E +x +{x J {I E * <x xE E +{I E < v Si +x |{i Ex i J {I E E C
k h xvi k {]M fS E +x i EB MB B +r h H * J{I {Ih +v {
E li Ex I E VS il k h |E]Eh * J{I |H J ri E Ex il |vx
u EB MB =Jx |CEx E l O k h E Ex i * E J{I
+i E ` +v *
3. x xxJi E k h E J{I x E :
i)
BE +xM VE k h lli 31 S 2012 E ` 57.73 Ec E E +i il = iJ E {i
` 4.55 Ec E E V ni * <x k h E +x J {IE u {Ii E M VE {]
|ii E M< il V iE +xM E v E v , +i =H J {IE E {] { { i
+vi *
ii) BB] n Ij Oh E (+) , VE k h lli 31 S 2012 E ` 8604 Ec E
E +i il = iJ E {i ` 53.43 Ec E E V ni * <x k h E +x J {IE
u {Ii E M VE {] |ii E M< il V iE +xM E v E v , +i
=H J {IE E {] { { i +vi * BE H =tb E{x, V E{x +J{Ii VE E
+i ` 761.07 Ec + E V ` 62.77 Ec *
iii) BE H =t V BE +i {xxh E{x VE k h +J{Ii + lli 31 S 2012 E ` 146.95
Ec E E +i il = iJ E {i `19.91 Ec E E V ni *
4. {] Ei E i xn JE lx u V J xE 21 Ei k h + J xE 23 Ei
k h B] x E J il J xE 27 H =t i E k {]M E +{I+ B i
W E E +{I+ E +x E |vx u Ei k h i EB MB *
5. n EB x, +xS 18 E x] . 5.13 E + vx+Ei Ei V VxE Ij E E E ES
i {x E{ {x: Jx { i W E u +{x nxE 09.02.2011 E {{j . b+b.{. / 80/21.04.018/
2010-11 E v |nx E M< U] E +x BB 15 ES E |vx E VxE E { M Ex v
` 448.56 Ec iE E r E Eh {x ni B OS] ni lMi EB Vx E i *
6. J{I E +v { il {lE k h E v +x J{IE E {] { S Ex il uFt rxvrKgt fuU +vvx
y:ot; ltux mk. 2 (i) yk;h NtFt Ft;t fUe cubu rJrgt fUu ;wl/CEx, WU ltux b g:tJrKo; rJrCt uFtNeMtu b cfUtgt rJrgt fuU ;wl/CEx
ytih vx fuU J {I {] E vx JE +i E:
(i) Ei ix{j lli 31 S 2012 E E Ei li E B x{I U ni ; B
(ii) Ei B x J = iJ E {i i E |Sx E Ei {h E B x{I U
ni *
(iii) Ei xEn | h-{j, h-{j E +v i E xEn | E B x{I U ni *
Ei {.B. Bb BB]
xn JE
YVUyth mk. 313085E
(n{ E +O)
vtxolh
ni . 55420

Ei B.+. xh Bb E.
xn JE
YVUyth mk. 002330S
(B.Bx. E]x)
vtxolh
ni . 22993

Ei fuU.Yb. yd{Jtt Bb E{x


xn JE
YVUyth mk. 000853 N
(. {. )
vtxolh
ni . 73009

Ei B.. Vx Bb E.
xn JE
YVUyth mk. 304012E
(E E. {])
vtxolh
ni . 056623

lx / Place : EEi / Kolkata


nxE / Date : 05.05.2012

154

Ei B.P Bb E{x
xn JE
YVUyth mk. 302184 E
(Snx S]]{v)
vtxolh
ni . 51254
Ei . Yl. fuU. CtdoJ Bb E{x
xn JE
YVUyth mk. 000429N
(Yl. fuU. CtdoJ)
vtxolh
ni . 080624

Auditors Report on the Consolidated Financial statements of Allahabad Bank, its


subsidiary and its interests in Associates and Joint Ventures
To,
The Board of Directors
Allahabad Bank
1. We have examined the attached Consolidated Balance Sheet of Allahabad Bank (the Bank), its subsidiary, associates and
joint venture (the Group) as at 31st March 2012 and the Consolidated Profit and Loss Account and the Consolidated Cash
Flow Statement for the year ended on that date in which are incorporated:
i. Audited accounts of the Bank audited by us
ii. Audited accounts of one subsidiary, two associates audited by other auditors and unaudited accounts of two joint
ventures.
These financial statements are the responsibility of the Banks management and have been prepared by the management
on the basis of separate financial statements and other financial information regarding components. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with generally accepted auditing standards in India. These Standards require that
we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. An
audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statements. We believe that our audit provides a reasonable basis for our opinion.
3. We did not audit the financial statements of:
i. One subsidiary, whose financial statements reflect total assets of ` 57.73 Crore as at 31st March 2012 and total
revenues of ` 4.55 Crore for the year ended on that date. These financial statements have been audited by
another auditor whose report has been furnished to us, and our opinion, in sofar as it relates to the amounts
included in respect of the subsidiary, is based solely on the report of the said auditor.
ii. Associates that included two Regional Rural Banks (RRBs) whose financial statements reflect total assets of
` 8604 crore as at 31st March 2012 and total revenues of ` 53.43 Crore for the year ended on that date. These
financial statements have been audited by other auditors whose reports have been furnished to us, and our
opinion, in sofar as it relates to the amounts included in respect of these associates, is based solely on the report
of the said auditors. The financial statements of one Joint Venture Company, which is an insurance company is
unaudited, whose total asset is ` 761.07 Crore and revenue of ` 62.77 crore.
iii. One joint venture which is an asset reconstruction company, whose financial statements are unaudited and reflect
total assets of ` 146.95 Crore as at 31st March 2012 and total revenues of ` 19.91 Crore for the year ended on
that date.
4. We report that the consolidated financial statements have been prepared by the Banks management in accordance with
the requirements of Accounting Standard 21 Consolidated Financial Statements and Accounting Standard 23 Accounting for investment in Associates in Consolidated Financial Statements, and Accounting Standard 27 Financial Reporting
of Interest in Joint Ventures issued by the Institute of Chartered Accountants of India and the requirements of the Reserve
Bank of India.
5. Without qualifying our opinion, we draw attention to note no. 5.13 of schedule 18 which describes deferment of pension
liability and gratuity liability due to increase in ceiling to the extent of ` 448.56 crores pursuant to the exemption granted by
the Reserve Bank of India to the public sector Banks from application of the provisions of AS 15, Employees Benefits vide
its circular No DBOD.BP.BC/80/21.04.018/2010-11 dated February 9th , 2011, on reopening of Pension Option to Employees of Public Sector Banks.
6. Based on our audit and consideration of reports of other auditors on separate financial statements and also subject to
Notes on Accounts i.e. Note No. 2(i) regarding balancing / reconciliation of unmatched entries in Inter Branch Accounts,
balancing / reconciliation and clearance of outstanding entries in various head of accounts as stated in the said notes, we
are of the opinion that:
i. The Consolidated Balance Sheet gives a true and fair view of the consolidated state of affairs of the Group as at
31st March 2012;
ii. The Consolidated Profit and Loss Account gives a true and fair view of the consolidated results of operations of
the Group for the year ended on that date; and
iii.

The Consolidated Cash Flow Statement gives a true and fair view of cash flows of the Group for the period
covered by the statement.

For P.A. & Associates


Chartered Accountants
FR No: 313085E

For M. R. Narain & Co.


Chartered Accountants
FR No: 002330S

For S Ghose & Co.


Chartered Accountants
FR No: 302184E

(Dillip Kumar Agarwalla)


Partner
Membership No. 55420

(M.N. Venkatesan)
Partner
Membership No. - 22993

(Chandan Chattopadhay)
Partner
Membership No. 51254

For K.M. Agarwal & Co.


Chartered Accountants
FR No: 000853N

For M.C.Jain & Co.


Chartered Accountants
FR No.304012E

For M/S N.K.Bhargava & Co


Chartered Accountants
FR No 000429N

(C.P.Mishra)
Partner
Membership No. 73009

(Mukesh Kr Patawari)
Partner
Membership No.056623

(N.K.Bhargava)
Partner
Membership No 080624

Place: Kolkata
Date: 5th May,2012

155

+E <xx .

xnE E {]

DIRECTORS REPORT

31 S, 2012 E {i k i E{x E J{Ii


rJteg rJJhK i E {] |ii Ei B xnE E
|zi *
k {h
Ivx E nx E{x x {U +Vi ` 2,79,50,798
E E{Si E {I ` 2,89,63,995/- E E {Si
+Vi E * k {h E xxx :

The Directors have pleasure in presenting the Annual Report


together with audited financial statements of the Company for
the year ended 31st March, 2012.
FINANCIAL RESULTS
During the year under review, your company earned profit after
tax of ` 2,89,63,995 as against ` 2,79,50,798 in the previous
year. The summary of the financial results is as follows:

( ` )/( in `)

E V \ Gross Revenue
E \ Total Expenses
E { \ Profit Before tax (PBT)
E i |vx \ Provision for tax
E {Si \ Profit after tax

AllBank Finance Ltd.

31.03.2012

31.03.2011

4,54,93,901
1,03,29,906
3,51,63,995
62,00,000
2,89,63,995

5,79,91,192
1,44,39,506
4,35,51,686
1,10,00,000
2,79,50,799

DIVIDEND

31 S, 2012 E {i i xnE x E E
x E*
{Sx
k 2011-12 E nx i +ll Ji:
E EE E l-l P Eh V E` pE xi,
=SS pi + v x B +tME Miv E Eh
n E li x * {U n 8.4 |ii E r nx
E {Si 2011-12 E nx E P =i{n 6.9 |ii
r E +Ex E M l* =v E =SS Mi B +x
Mi r x =tM E |ni + +iE S { |iE
| b *
k 2011-12 E nx V n +xSii E Eh
k p V E Miv E n +<* Bxb B
{ V Ji E +vE xMEi+ E l-l <x
Ji E lMi xE/+ni+ x { <iV Ex
+ li E {Jx E ri E +{xB J*

Directors do not recommend any dividend for the year ended


31st March, 2012.
OPERATIONS
Indian economy registered slowdown during the financial year
2011-12 largely due to global factors, as also because of
domestic factors like tightening of monetary policy, high inflation
and slower investment and industrial activities. During 201112, GDP was estimated to grow by 6.9 per cent after having
grown at 8.4 per cent in the preceding two years. High
borrowing costs and increase in other costs adversely affected
the profitability and internal accruals of the Industries.

k 2011-12 E +i i E + E p
V EU v nJ< n l Ei e, 2012 V
n + E`i x + ii E E` li E Eh
{o +SxE n M*

During the financial year 2011-12, with uncertainties in interest


rate movements, the activities in the financial as well as money
market slowed down drastically. Most of the potential issuers
of instruments like NCD & CP as well as institutional investors
/ subscribers to these instruments adopted the principle of wait
and watch approach throughout.
During early part of last quarter of the financial year 2011-12,
though activities in the Money Market started showing some
improvement, the scenario suddenly changed due to further
hardening of interest rate in the month of February, 2012 and
tight liquidity position.

<E {h{ +{E E{x +vEi: +]] Evtulkux,


i vM, G}] {{, {EVM, +{i, Jtt |Eh, ]
IE lx +n Vm u z Ij E Ei B ]<
+vx E iE i * k 2011-12 E nx +{E
E{x x {U E ix ]< +vx + E v
275% +vE E r nV E + xvi + E v
100% E r nV E * <E +iH +{E E{x x
E nx U { {] EY *

As a result, your Companys activities have been confined


mostly to TEV study assignments covering various sectors viz
automotive components, cotton yarn, kraft paper, packaging,
hospitals, food processing, hotels, educational institution, etc.
and Trusteeship activities. During the FY 2011-12, your
Company registered a growth of over 275% in respect of
income from TEV study and over 100% in respect of income
from Trusteeship activities as compared to the previous year.
Besides, your Company also executed six numbers of CP
placement deals during the year.

xM +v xv E { + H{h gM i
|i nx te Ji xE Ex E{x E x Vxi
+ 16% +vE E r < t{ < +v E nx +i
x ` 38,93,00,000 gE ` 41,69,00,000 M +li
MM 7%*

The Companys Income from Investment increased by over


16% due to timely and judicious deployment of investible
surplus funds in instruments carrying better return though,
average investment during the period increased from
` 38,93,00,000 to ` 41,69,00,000 i.e. by around 7%.

156

+E <xx .
AllBank Finance Ltd.

E nx BB ih EV + ` 1,56,43,869/- E
{{i { P]E ` 35,66,886 M<* <E J Eh
<n E B +x u z S+ b hFu i x
E =xSx E Vx*
S E B n ]Eh
+{E E{x b ix ij xnE E +{x
Miv E ni Ex E |G * xB xnE E {
k V B +x vi Ij E {E +x V +x
+{E E{x E +{x E Miv iV
x nn M* +{E E{x x< n BE J Jx
E |G * x< n E E H E
l{x il < B EEi E +{x Vn E E
og Ex E E |Mi { * +{E E{x E n]Eh S
k +{x ] | +{x Miv =Jx
r Ex E V E @h x, xM |vx, x Miv
B +x E +vi B l iExE +lE i +vx
|VC] Ex B +x *
nxn E +x{x
+{E E{x Sx] EM + +x |V {V V vi
Miv E v u V z xn, nxn,
{{j E +x{x E *
ES E h

Brokerage Income from MF distribution during the year


reported significant drop to ` 35,66,886 as against
` 1,56,43,869 during the corresponding period last year. This
is mainly attributed to large scale redemption of investments
in various Mutual fund schemes by Allahabad Bank and others.
OUTLOOK FOR THE CURRENT YEAR
Your company is in the process of revamping its business
activities with induction of three new Independent Directors in
the Board. The new Directors have vast experience in the
financial market and other related areas, which will help your
company boosting up its business growth in the periods to
come. Your company is in the process of opening a Branch
office at New Delhi. Placement of professionals at New Delhi
office and strengthening of existing work force at Mumbai and
Kolkata office are undergoing. Your company would endeavor
to achieve significant growth in terms of income from activities
viz, Debt Syndication, Trusteeship and other fee based services
such as Techno Economic Viability studies, project appraisal
and so on.

E{x E E< ES E{x (ES h), x 1975 E


l {`i E{x +vx 1956 E v 217(2B) E ii x
+i *
E{x (xnE b E {] h E |E]Eh) x,
1988 >V E Ih, |tME +h B n p E
+Vx B Mx

None of the employees are covered under section 217 (2A) of


the Companies Act, 1956 read with Companies (particulars of
Employees) Rules 1975.

COMPLIANCE OF SEBI GUIDELINES


Your company has complied with various guidelines, directives,
circulars issued by SEBI pertaining to Merchant Banking,
Debenture Trusteeship and other applicable capital market
related activities.
PARTICULARS OF EMPLOYEES

COMPANIES (DISCLOSURE OF PARTICULARS IN THE


REPORT OF THE BOARD OF DIRECTORS RULES 1988
CONSERVATION OF ENERGY, TECHNOLOGY,
ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND
OUTGOINGS
The company has nothing to report under this head.

< E +iMi E{x E EU {] x Ex *


BOARD OF DIRECTORS
xnEMh
{.E. M{i, b. xM{i + +.V. , b E ij Shri P.K. Gupta, Shri D.Sengupta and Shri R.G. Sharma,
Directors on the Board resigned during the year
xnE x E nx 26 +Mi 2011 iM{j n n* Independent
th
|n +EE, |v xnE B <+ {S E w.e.f. 26 August, 2011. Shri Prasad Akolkar, MD & CEO was
relieved from the services of the Company on 18.10.2011
+v { Ex E n 18.10.2011 E E{x E + also
after completion of his term of five years. Shri Deepak Narang,
xEi MB* n{E xM, |vE (@h) x 01 S General Manager (Credit), Allahabad Bank vacated his office
2012 x<]b E + <b E{E xnE E {n as Director on the Board of the company on his joining as
Oh Ex E n E{x E b E xnE {n E H E n* Executive Director of United Bank of India w.e.f. 1st March,
b. E, E{E xnE x 01.04 2012 xx E 2012. Shri D Sarkar, Executive Director, Allahabad Bank
+ <b +vI B |v xnE E {n Oh Ex E vacated his office as Director on the Board of the company on
Eh nxE 31.03.2012 E{x E b E xnE {n E H 31.03.2012 for his joining as Chairman & Managing Director
E n* b x E{x E xnE E { {.E. M{i, b. of Union Bank of India w.e.f. 01.04.2012. The Board placed
record its appreciation for the services rendered by Shri
xM{i + +.V. , e ze. mhfUth, e =evfU lthkd YJk e on
P.K. Gupta, Shri D. Sengupta, Shri R. G. Sharma, Shri D Sarkar,
mt= yfUtutfUh tht =xE EE fuU nx |nk + E Shri Deepak Narang and Shri Prasad Akolkar during their
tenure as Directors of the Company.
x E YJk Rmu yrCtuFt b =so rfUgt*
n, xn E` B Bx y E 10 Shri Subir Das, Shri Vinod Kothari and Shri Emron Samuel
appointed as Independent Directors of the Company
i 2011 E{x E b ij xnE fuU hv b xH were
w.e.f. 10th September, 2011. Shri S.K. Widhani, General
E M* B.E. vx |vE (@h), <n E B Manager (Credit), Allahabad Bank and Shri M R Nayak,
B.+. xE, E{E xnE, <n E E G: Executive Director, Allahabad Bank were inducted on the Board
24.03.2012 B 01.04.2012 E E{x E b E of the Company as Director w.e.f. 24th March, 2012 and 1st
M* bqt E +li <n E E{x E xB <+/Bb E April, 2012 respectively. The Parent Bank viz, Allahabad Bank
is in the process of appointing new CEO / MD of the Company.
xH E |G b *
E{x +vx 1956, E v 274(i)(g) E +iMi E< None of the Directors of the Company has been disqualified
under section 274(i) (g) of the Companies Act, 1956.
xnE ygtug ln vtgt dgt*
157

+E <xx .
E{] Mxx
(E) b ` E
2011-12 E nx b E U(6) ` E <k + Vx b E
n x xxx M

CORPORATE GOVERNANCE

AllBank Finance Ltd.

(a) Board Meetings:


During the year 2011-12, six (6) Board meetings were held
and attendance of the Board Members was as under:

xn E / Director
V.{. n+ / Shri J. P. Dua
b. E / Shri D. Sarkar
B.. ]]S / Shri A. B. Bhattacharjee
b. xM (01.03.2012 E iM{j)

`E E J

`E ={li

No. of meetings

Meetings attended

6
6
6
5

6
6
6
4

Shri D. Narang (Resigned w.e.f. 01.03.2012)

B.E. vx (24.03.2012 xCi)

Shri S.K. Widhani (Appointed w.e.f. 24.03.2012)

|n +EE (01.03.2012 E xk)

Shri Prasad Akolkar (Resigned w.e.f. 01.03.2012)

{.E. M{i (26.08.2011 E iM{j)

Shri P. K. Gupta (Resigned w.e.f. 26.08.2011)

b. xM{i (26.08.2011 E iM{j)

Shri D. Sengupta (Resigned w.e.f. 26.08.2011)

+. V. (26.08.2011 E iM{j)

Shri R. G. Sharma (Resigned w.e.f. 26.08.2011)

n (10.09.2011 xCi)

Shri Subir Das (Appointed w.e.f. 10.09.2011)

xn E` (10.09.2011 xCi)

Shri Vinod Kothari (Appointed w.e.f. 10.09.2011)

Bx + (10.09.2011 xCi)

Shri Emron Samuel (Appointed w.e.f. 10.09.2011)

(J) J i :
b E J{I i E M`x {. E. M{i +vI, B
+. V il B. . ]]S n l* {.E. M{i
+.V u 26 +Mi 2011 iM{j nB Vx E
{h{ n E +vI B Bx +
b. E E n E { xH Ei B xnE b x
J{I i E {xM`x E* J i E EIj E{x
+vx 1956 fUe "tht 292-B E +iMi *
2011-12 E nx J{I i E S(4) `E +Vi
E M<k V ={li xxx l :

(b) Audit Committee :


The Audit Committee of the members of the Board was
constituted comprising of Shri P.K. Gupta as Chairman, Shri
R.G. Sharma & Shri A.B. Bhattacharjee as Members. Pursuant
to the resignation by Shri P.K. Gupta and Shri R.G. Sharma
with effect from 26th August, 2011, the Board of Directors reconstituted the Audit Committee by appointing Shri Subir Das
as Chairman and Shri Emron Samuel & Shri D. Sarkar as
Members. The scope of Audit Committee is as per Section
292A of the Companies Act, 1956.
During the year 2011-12, four (4) Audit Committee Meetings
were held and attendance by Audit Committee members was
as under:

xn E / Director
{.E. M{i (26.08.2011 E iM{j)

`E E J

`E ={li

No. of meetings

Meetings attended

2
2

2
2
1

Shri P.K. Gupta (Resigned w.e.f. 26.08.2011)

+. V. (26.08.2011 E iM{j)

Shri R.G. Sharma (Resigned w.e.f. 26.08.2011)

B.. ]]S (i E {xM`x


x E Eh 13.12.2011 ni {i)

Shri A.B. Bhattacharjee (Ceased to be Member w.e.f.


13.12.2011 due to re-constitution of the Committee)

n (13.12.2011 xCi)

Shri Subir Das (Appointed w.e.f. 13.12.2011)

Bx + (13.12.2011 xCi)

Shri Emron Samuel (Appointed w.e.f. 13.12.2011)

b. E (13.12.2011 xCi)

Shri D. Sarkar (Appointed w.e.f. 13.12.2011)

158

+E <xx .
AllBank Finance Ltd.

xnE E ni E h

DIRECTORS RESPONSIBILITY STATEMENT

E{x +vx, 1956 E v 217(2AA) E +{Ix xnE


ni h E v Binu {] E Vi E:

Pursuant to the requirement under Section 217 (2AA) of the


Companies Act, 1956 with respect to Directors Responsibility
Statement, it is hereby confirmed that:

E) 31 S 2012 E {i k E E J E i
Sx v Si {]Eh E l M J
xE E {x E M

a) In the preparation of the annual accounts for the


financial year ended 31st March, 2012, the applicable
accounting standards had been followed along with
proper explanation relating to departures.

J) xnE x B J xi E Sx B <x Mi {
M E B xh |CEx EB V HMi
B E{h Ivx i E{x E B x{I
ZE B < +v E nx +{E E{x E +l
x E li |ii E V E*

b) The Directors had selected such accounting policies


and applied them consistently and made judgments
and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of the
company at the end of the financial year and of the
profit or loss of the Company for the year under review.

M) xnE x vJvc B +x +xii+ E Ex B


=xE {i Mx E B il E{x E +i E Ii
Ex i E{x +vx, 1956 E |vx E +x
{{i J +J E JJ i Si B {{i
vx J *

c)

P) xnE x 31 S 2012 E {i i + ii
|i`x +v { E J i EB *
J{IE
E{x +vx, 1956 E v 619(2) E ={v E{x { M
x E Eh i E xjE B J{IE, x< n x
2011-12 i b. Bb , xn JE EEi E
J{IE xH E *

The Directors had taken proper and sufficient care for


the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the Company and
for preventing and detecting fraud and other
irregularities.

d) The Directors had prepared the accounts for the


financial year ended 31 st March 2012 on a going
concern basis.
AUDITORS
The provisions of Section 619(2) of the Companies Act, 1956
being applicable to the Company, the Comptroller and Auditor
General of India, New Delhi had appointed M/s. De & Bose,
Chartered Accountants as Statutory Auditors of the Company
for the year 2011-12.

J{IE E {] { |vx E =k
+{x J{I E nx J{IE u E< xn] ]{{h
x E M<*

MANAGEMENTS REPLY TO THE AUDITORS REPORT

x
+{E xnE, i E xjE B J{IE u nB MB
Mnx i =xE |i +{x + H Ei *

GENERAL

+{E xnE E{x E E +li <n E -


{ |{i i lx B Mnx i <E |i vxn
Y{i Ex Si + E{x E ES u nB MB Mnx
B EB MB | i =xE |i + |E] Ei *

Your Directors also wish to place on record their sincere thanks


to the Bankers viz, Allahabad Bank for their assistance, support
and guidance from time to time and also thankfully
acknowledge contributions made and efforts put in by
companys employees.

xnE b E B B E +

For on and behalf of the Board of Directors

(B.. ]]S)
xnE

The Auditors made no specific qualification during the course


of their audit.

Your Directors wish to place on record their gratitude to the


Comptroller and Auditor General of India for their valuable
guidance.

(V.{. n+)
+vI

(A.B. Bhattacharjee)
Director

159

(J. P. Dua)
Chairman

+E <xx ]b
AllBank Finance Limited
31 S, 2012 E ix-{j
BALANCE SHEET AS AT 31st March, 2012

x]/Note
<C] + niB / EQUITY AND LIABILITIES
1. vE E xv / Shareholders Funds
(a) {V / Share Capital
(b) |Ii B +v / Reserves and Surplus
2. xx-E] niB/ Non-Current Liabilities
nPv |vx / Long-term Provisions
3. S niB / Current Liabilities
(a) { n / Trade Payables
(b) +x S niB / Other Current Liabilities
(c) +{v |vx / Short-term Provisions

(`)

lli/As at
31 st March, 2012
(`)
(`)

2.1

150,000,000

2.2

352,598,566

2.3

lli/As at
31 st March, 2011
(`)
(`)
150,000,000

502,598,566

323,634,571

17,010,629

2.4

532,098

285,833
7,352,345
57,696,985

42,460,461

577,306,180

+i / ASSETS
1. xx-E] +i / Non-current Assets

+i/ Fixed Assets


2.5
i) i +i/ Tangible Assets
ii) +i/ Intangible Assets
iii) {V E |Mi {/Capital Work-in-progress
(b) x/Investments
2.6

473,634,571

17,250,776

8,638,816
48,526,071

(`)

50,098,639
540,983,986

(a) l

(c)

(a)
(b)
(c)
(d)
(e)

17,573,397

22,133
84,134

24,400
17,466,178

261,616,414

17,597,797
234,153,665

nPv @h B +O

Long-term Loans and Advances


2. S

17,359,911

+i/Current Assets
x/Investments
{ |{ /Trade Receivables
xEn + xEn i

2.7

852,949

279,935,541

984,865

2.8

89,471,243

114,633,041

2.9

607,669

57,632

Cash and Cash Equivalents

2.10

92,018,890

53,322,369

Short-term loans and advances

2.11

108,218,365

102,692,283

Other Current Assets

2.12

7,054,472

252,736,327

+{v @h B +O
+x S +i

i{h J xi + J ]{{h
SIGNIFICANT ACCOUNTING POLICIES
AND NOTES ON ACCOUNTS

297,370,639
577,306,180

17,542,334

288,247,659
540,983,986

1&2

={H ni ]{{h ix{j E +z +M


The Notes referred to above form an integral part of Balance Sheet.

ix-{j il E {] ni

This is the Balance Sheet referred to in our report of even date.

b E B B E +

Ei b Bb

For and on behalf of the Board

For De & Bose

xn JE
Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mkgt / Membership No.54962
VUbo vksefUhK mkgt / Firm Registration No. 302175E

V.{. n+ / J. P. Dua
+vI / Chairman

n / Subir Das
xnE / Director

B.+.xE/ M. R. Nayak
xnE/ Director

B. . ^S / A. B. Bhattacharjee
xnE / Director
/ Shreya Shah
fUkvle mraJ / Company Secretary

lx : EEi / Place: Kolkata


nxE / Date: 28.4.2012

160

+E <xx ]b
AllBank Finance Limited
31 S, 2012 E {i E x J
Statement of Profit and Loss Account for the year ended 31st March, 2012

S
Note

31.03.2012

E {i

31.03.2011

E {i

Year ended

Year ended

31.03.2012

31.03.2011

(`)

(`)

2.13
2.14

11,083,498
34,410,403
45,493,901

26,427,013
31,564,179
57,991,192

2.15
2.16
2.5

5,005,610
5,098,743
225,553
10,329,906

4,917,491
9,326,190
195,826
14,439,507

Profit before exceptional and extraordinary items and tax


+{niE n / Exceptional items

35,163,995
-

43,551,685
-

Profit before extraordinary items and tax


+{niE n / Extraordinary items
Evx { / Profit before Taxation
E v JS / Tax Expense :
ix E / Current Tax
{ / Earlier Years

35,163,995
35,163,995

43,551,685
43,551,685

6,200,000
-

11,000,000
4,600,887

Profit for the period from continuing operations

28,963,995

27,950,798

Profit from discontinuing operations

Tax Expense of discontinuing operations

28,963,995

27,950,798

19.31

18.63

{Sx V

Revenue from Operations


+x + / Other Income
E V / TOTAL REVENUE
JS / Expenses :
ES JS / Employee Benefits Expenses
+x JS / Other Expenses
/ Depreciation
E JS / TOTAL EXPENSES

+{niE B +vh n + E {
+vh n B E {

ii {Sx +v i
+ii {Sx

+ii {Sx E v JS

E {Si +ii {Sx

Profit from discontinuing operations after tax


+v i / Profit for the period
|i +Vx [+Ei |iE ` 100/-]
Earnings per Share [ Face Value ` 100/- each]
|i + b]b +Vx [x] 2.20 E n ]
Basic and Diluted Earnings per Share [ Refer to Note 2.20]

i{h J xi + J ]{{h
SIGNIFICANT ACCOUNTING POLICIE
AND NOTES ON ACCOUNTS

1&2

={H ni ]{{h ix{j E +z +M


The Notes referred to above form an integral part of Balance Sheet.

ix-{j il E {] ni

This is the Balance Sheet referred to in our report of even date.

b E B B E +
Ei b Bb
For De & Bose

xn JE

For and on behalf of the Board

V.{. n+ / J. P. Dua
+vI / Chairman

n / Subir Das
xnE / Director

B.+.xE/ M. R. Nayak
xnE/ Director

B. . ^S / A. B. Bhattacharjee
xnE / Director

Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mkgt / Membership No. 054962
VUbo vksefUhK mkgt / Firm Registration No. 302175E

/ Shreya Shah
fUkvle mraJ / Company Secretary

lx : EEi / Place: Kolkata


nxE / Date: 28.4.2012

161

+E <x ]b
AllBank Finance Limited

31 S, 2012 E {i i xEn | h
Cash Flow Statement for the year ended 31 st March, 2012
2011-12
(`)

2010-11
(`)

35,163,995

43,551,685

E. {Sx Miv xEn |


A CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before Tax

Vx / Adjusted for :
/ Depreciation
V + / Interest Income
+-S+ b / Dividend Income - Mutual Fund
+- / Dividend Income - Shares
Bx{B i |vx + +{Ii x /

225,553

195,826

(24,447,420)

(23,872,813)

(2,142,797)

(5,364,971)

(31,025)

(28,650)

(1,681,929)

(76,988)

Provision for NPA no longer required

i |vx + +{Ii x /
Provision for Expenses no longer required

x +{ i |vx + +{Ii x /
Provision for Diminution in Investment no longer required

]] Ji b MB +v @h / Bad Debt written off


x E G { /Profit on sale of Investments
l +i E G { / Profit on sale of Fixed Assets
x E i |vx

(249)

8,654

(7,625,094)

(153,863)

Provision for Diminution in value of Investments

537,500

(33,483,532)

(2,880)

(30,977,614)

E {V {ix { {Sx
Operating Profit before Working Capital Changes

i Vx

1,680,463

12,574,071

Adjusted for :

]b + +x |{ /
Trade and Other Receivables

@h B +O / Loans and Advances


]b B +x n / Trade and Other Payables
{Sx +Vi xEn /

(1,000,556)

8,580,137

133,697

1,799,242

1,158,199

Cash generated from Operations

Mix E M E / Tax paid


Sx E Miv (|Ci) x xEn
Net Cash (used in) from Operating Activities

162

291,340

1,069,250

11,448,629

1,971,803

24,022,700

5,527,861

33,970,816

(3,556,058)

(9,948,116)

+E <xx .
AllBank Finance Ltd.

l +i E Jn / Purchase of Fixed Assets

2011-12

(`)

(`)

2010-11

J. x Miv xEn |
B. CASH FLOW FROM INVESTING ACTIVITIES
l +i E Jn / Purchase of Fixed Assets

(9,800)

(71,098)

l +i E G |{i +M
Proceeds from Sale of Fixed Assets

5,500

{V E |Mi {/

Capital - work - in - progress

(84,134)

S+ b x |{i +M (x)
Proceeds from Investments of Mutual Fund (Net)

4,786,890

5,607,983

(41,664,815)

35,385,801

(20,000,000)
16,170,004

31,025

28,650

2,142,797

5,364,971

E E v V x (x)

Investment in Fixed Deposit with Bank (Net)

+{ix bS x
Investment in Non-Convertible Debentures
V + / Interest Income

+- / Dividend Income - Shares


+- S+ b / Dividend Income - Mutual Funds
x Miv x xEn
Net Cash from Investing Activities

M k Miv xEn |

587,764

7,106,010

(2,968,294)

(2,842,106)

3,322,369

6,164,475

354,075

3,322,369

1,823

5,349

352,252

3,317,020

354,075

3,322,369

C. CASH FLOW FROM FINANCING ACTIVITIES

k Miv x xEn
Net Cash from Financing Activities

xEn + xEn i x (E)


Net (Decrease) in Cash and Cash Equivalents

xEn + xEn i (+l )


Cash and Cash Equivalents ( Opening Balance )

xEn + xEn i (<i )


Cash and Cash Equivalents ( Closing Balance )

x]/Note :
1. xEn + xEn i

Cash and Cash Equivalents comprise :

Ec / Cash in hand
+xS E E :
Bank Balance with Schedule Banks :

S Ji

/ in Current Account

b E B B E +

Ei b Bb

For and on behalf of the Board

For De & Bose

xn JE
Chartered Accountants

i b / Subrata De
{]x / Partner
m=g;t mk. / Membership No.54962
VUbo vksefUhK mkgt / Firm Registration No. 302175E

V.{. n+ / J. P. Dua
+vI / Chairman

n / Subir Das
xnE / Director

B.+.xE/ M. R. Nayak
xnE/ Director

B. . ^S / A. B. Bhattacharjee
xnE / Director
/ Shreya Shah
fUkvle mraJ / Company Secretary

lx : EEi / Place: Kolkata


nxE / Date: 28.4.2012

163

+E <xx .
x] -

AllBank Finance Ltd.


NOTE 1

i{h J xi

Significant Accounting Policies:

k h i Ex E +v
k h E J xE + E{x +vx, 1956 E
Mi |vx E +x i EB Vi + {{Mi Mi
{{] { +vi * J xi, V iE +xl xn] x ,
+xE + xi: Ei J ri E +x{ * n +
|{ iE x MB + + E J, V iE +xl
xn] x , ={Si +v { E M *
1.1

|CEx E |M
k h i Ex i B |vx E +Ei i V B
+xx + |CEx Ei V {] E M< +i + ni+
E E E |i Ei + ix {j E iJ E +EE
ni+ il +i + E nx {] E M< + + E
vi |E]Eh *
+EEi+ E i nV E Vi V < i E x E
ni ={Mi M + = E Si |CEx E V Ei
* V {h Yi/i i = iE {h +
|CEx E +i E +Yi E Vi *
1.3 htsJ yrCttl
1.2

1.1 Basis of preparation of Financial Statements


The financial statements are prepared in accordance with applicable accounting standards and relevant provisions of the
Companies act,1956 and are based on the historical cost conventions. Accounting policies unless specifically stated to be
otherwise, are consistent and are in consonance with generally accepted accounting principles All expenses and income
to the extent considered payable and receivable , unless stated
otherwise, have been accounted for on accrual basis.
1.2 Use of Estimates
The preparation of financial statements require management
to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and
the reported amounts of income and expenses during the year.
Contingencies are recorded when it is probable that a liability
will be incurred and the amounts can reasonably be estimated.
Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.
1.3 Revenue Recognition

(i) vxTxt rJtvtuMK&


1.4.2001fUtu gt RmfuU vtt; thkC tuFt yJrD fuU =tihtl
mb; vxTxu fUe ytr;gt fUu mkckD b CtJ b ytRo tes vh
tuFt btlfU 19 (YYm-19) ttdq ni> akqrfU fkUvle lu 1.4.2001
fUtu y:Jt RmfuU vat; fUtuRo tes mkJef]U; lnek fUe y;&
YYm-19 fkUvle vh gtug ln ni>

(i)

tes fUhth fuU ylwmth =ug r;r: E tes rfUhtY { rJath


E Vi * Cth;eg rhsJo cikfU tht DturM; rJJufUmb;
btl=kzt fuU yk;do; snt tez ytr;gtk ylwvgtug ytr;gt
(YlveY) b Jdeof]U; tes rfUhtY vh rJath lnek rfUgt
dgt>
il{ E{x x E 2005 h-* S] E E
{ {VEi E il SE E{x + E< BS{ B
VM E x E , +iB =x M EM
k l E { +{x < { E n *

Lease Rentals are not considered where Leased


Assets have been classified as Non Performing
Assets (NPA) under the Prudential Norms announced by Reserve Bank of India.
However, the Company had registered itself as a
Category I Merchant Banker in the year 2005 and
had surrendered NBFC license since it discontinued HP and Leasing business.

(ii) V + E +Yx E il |V n E +v
{ M x Vx E E iE
+x{i +v { E Vi *

(ii)

+ E i +Yi E Vi V <E |{i


E +vE l{i Vi *
1.4 yat ytr;gtk
fkUvle tht :tvlt vh rfY dY gg mrn; yat ytr;gt fUt vkqsefUhK
ttd; vh ntu;t ni>
1.5 vxTxu vh te dRo ytr;gtk
f{Ug fUe dRo YJk vxTxu vh =e dRo ytr;gt fUt vqksefUhK :tvlt ttd; YJk
:tvlt gg vh rfUgt dgt ni>

(iii)

(iii)

Lease Finance
The Accounting Standard 19 (AS19) on Leases
came into effect in respect of all assets leased during accounting periods commencing on or after
1.4.2001. Since the Company has not sanctioned
any lease on or after 1.4.2001, the AS19 is not
applicable to the Company.

Interest income is recognized on a time proportion


basis depending upon the amount outstanding and
the rate applicable and to the extent considered realizable.

Income on account of dividend is recognized when


the right to receive is established.
1.4 Fixed Assets
Fixed Assets are capitalized at cost inclusive of installation
expenses as incurred by the Company.
1.5 Leased Assets
Assets purchased and given on lease are capitalized on installation at cost and installation expenses.

164

+E <xx .
1.6

1.6 Depreciation

bqgtm
(i) tes vh =e dRo ytr;gt fuU yttJt yg ytr;gtk &

(ii)

(i)

Assets other than given on Lease:

fkUvle yr"rlgb, 1956 fUe ylwmqae XIV b rl"torh; =ht vh


me"e huFt Ktte vh bqgtm fUt tJ"tl rfUgt st;t ni>

Depreciation is provided under Straight Line Method


at the rates and in the manner as per Schedule
XIV of the Companies Act, 1956.

+i +i E {S E +v +l n ={M
+v {S E i +{IEi E +v v J
|h {vi E Vi *
vxTxu vh =e dRo ytr;gtk &
Cth;eg ml=e tuFtfUth mk:tl tht sthe IYfUtWkrxkd VUtph terskdO
vh dtRzum ltux fuU ylwmth tes vh =e dRo ytr;gt vh bqgtm
fUt tJ"tl rfUgt st;t ni>

Intangible Assets are amortised over a period of five


years or in lesser period if useful life is lower than
five years on straight line basis.
(ii)

Assets given on Lease:


Depreciation on Leased Assets is provided as per
the Guidance Note on Accounting for Leases issued by the Institute of Chartered Accountants of
India.

fkUvle yr"rlgb, 1956 fUe ylwmaq e XIV b rl"torh; =ht vh me"e


huFt Ktte vh mb; ytr;gt (vxTxu vh =e dRo Wl ytr;gt fUtu
rbttfUh rsn ylwvgtug htrN fuU v b JdeofU] ; rfUgt dgt ni) vh
me"e huFt Ktte vh bqgtm =tl rfUgt st;t ni>
1.7

AllBank Finance Ltd.

Depreciation on all the fixed assets (excluding


Leased Assets classified as Non Performing Assets)
has been provided on straight line method at the
rates prescribed in Schedule XIV of the Companies Act, 1956.
1.7 Investment

rlJuN

=eDo yJr" fuU rlJuN fUt ttd; vh bqg rl"othK rfUgt st;t ni> JMo fUe
mbtrt vh rlJuN fuU bqg b tm nu;w tJ"tl Yumu rlJuN fuU bqg b fUbe
ntulu vh rfUgt st;t ni>

Long Term Investments are valued at cost. Provision for diminution in value of investment is made for decrease in value of
such investments if permanent in nature as at the end of the
year.

J;obtl rlJuN fUt bqgtkfUl gql;h ttd; YJk ctsth bqg vh rfUgt st;t
ni>
sntk rlJuN mqaec fUh rtgt dgt ntu vhk;w h fUh r=gt dgt ntu ytih
ctsth fUtuxuNl WvtD l ntu ;:t rlJuN fUtu mqae mu rlfUtt r=gt dgt ntu,
Yumu btbtu b rlJuN fUt bqg ` 1 r; fkUvle rtgt stYdt>

Current Investments are valued at the lower of cost and market value.
In cases where Investments are listed but suspended and
market quotations are not available and where investments
are delisted, the value of the investment has been taken at
` 1/- per Company.

rJNuM gtgttg (r;Cqr; tul-=ul mkckDe yvht"t fUt rJathK) +vx,


1992 fuU yk;do; drX; rJNuM gtgttg, bwcRo fuU yt=uN fuU ylwmhK b
0 Je.ce. =umtRo Ft;t fuU rlvxtl mu yrso; Nught fuU btbtu b Rm fUth
yrso; Nught fUe ttd; fUtu Yumu rlKog mu vqJo 0 Je.ce. =umtRo mu cfUtgt
rlJt htrN vh rtgt dgt ni> Rm rlJuN fUtu =eDofUtrtfU rlJuN btlt dgt
ni>

In the case of shares acquired in settlement of M/s V B Desai


A/c pursuant to the Order of The Special Court, Mumbai, constituted under The Special Courts (Trial of Offences relating to
Transactions in Securities) Act, 1992, the cost of acquisition
of the Shares so acquired have been taken at the net amount
due from M/s V B Desai, prior to such ruling. This investment
has been considered as Long Term Investment.

1.8

1.8 Prudential Norms

rJJufUvqKo btl=kz

grv fUkvle rfUhtgt-Fhe= YJk terskd gJmtg lnek fUh;e, rVUh Ce


V-E |V ytg yrCttl, ytr; JdeofUhK YJk tJvtl nu;w dih
crfkUd rJteg fkUvrlgt nu;w rJJufUvqKo btl=kz fuU mkckD b Cth;eg rhsJo
cfU tht sthe rl=uoNt fUt ylwvttl rfUgt dgt ni>

Although the Company is not doing Hire Purchase and Leasing business yet the Directions issued by the Reserve Bank of
India regarding prudential norms for Non-Banking Financial
Companies for income recognition, asset classification and
provisions have been followed, wherever found applicable.

1.9

rJrJv =ul=th &


=ug/tg htrN turfUl rsmu tes, rfUhtgt Fhe=, ;];eg vG ytr= fuU
fUthK JMo fUe mbtrt vh yCe t; ntult ni, fUtu rJrJ" =ul=th Ft;u b ltbu
ztt;u nwY mkcr"; ytg/ytr; Ft;t b sbt fUhlt ni>

1.9 Sundry Debtors

1.10 ylwvgtug

1.10 Provision for Non Performing Assets

ytr;gt nu;w tJ"tl &


rfUhtgt Fhe=, tes ytr= mu 12 btn mu yr"fU rfU; =ug ntulu fuU btbtu
b ytih +i fUthvtuhux sbt mu 6 btnt mu yr"fU +v nu;w gts =ug hn;t
ni ;tu ytr; ylwvgtug btle stYde ytih Ft;t b fUtuRo ytg ln btle
stYde>

Amount due/ receivable but yet to be received at the end of


the year on account of Lease, Hire Purchase, third parties etc.
are debited to Sundry Debtors Account and credited to respective income/ assets account.

In case of Installments due for more than 12 months from Hire


Purchase, Lease, etc and in case of interest remained due for
more than 6 months from Inter Corporate Deposit, the asset is
treated as Non Performing Assets and no income is considered in the accounts.

165

+E <xx .
ttC YJk ntrl Ft;u fuU ltbu zttfUh ylwvgtug ytr;gt nu;w tJ"tl rfUgt
st;t ni>
1.11

+i E Ii x

AllBank Finance Ltd.


Provision for a Non-Performing Asset is made by debiting
Profit & Loss Account.
1.11 Impairment of Assets

E +i E i Ii x Vi V = +i E Jx E
Mi M +vE Vi * V +i E Ii
E { +xvi E Vi = Ii x E B
x J |i E Vi * n +xxi M
{ix M i { J +v +Yi Ii x E
|iii E Vi
1.12 ES
ES ES u |nx E M< E ={Si i
* xvi +nx Vx+ l xv +nx E +Yx
+nx nx { E Vi *

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is
charged to profit and loss account in the year in which an
asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been
a change in the estimate of recoverable amount.

{i Vx V OS] + +E xEnEh E +iMi


nP EE ES EE iExE E |M EE n
E ix { E {i { xvi E Vi *

Long term employee benefits under defined benefits scheme


such as gratuity and leave encashment are determined at close
of the year at present value of the amount payable using actuarial techniques.

1.13 +

1.13 Taxes on Income

{ E

1.12 Employee Benefits


Employee benefits accrued in the year are for services rendered by the employees. Contribution to defined contribution
schemes such as Provident fund is recognized as and when
incurred.

ix + +lMi E nx i E E |vx E Vi * S
E E |vx |V E n + E Exx E |M Ei B E
M + { E Vi * +i E Eh =i{z +lMi
E +i + niB, Vx {i +v |iii E V
Ei , E +Yx +vxi E n + E Exx E |M
Ei B E Vi * +lMi E E i iE +Yi x E
Vi V iE <E |iix E v {{i +x
x *
1.14 |vx, +EEiB + +EE +i

Provision for tax is made for both current and deferred tax.
Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities
arising on account of timing difference which are capable of
reversal in subsequent periods are recognized using tax rates
and tax laws which have been enacted or substantively enacted. Deferred tax are not recognized unless there is sufficient assurance with respect to the reversal of the same in the
future years.

{x {{i { EB MB |CEx |vx E i +Yi


E Vi V {U E P]x E B ix ni xi
+ < i E x E vx E Mx M il ni
E E v BE x +xx M V Ei *
+EE +i E k h x i +Yi E Vi
+ x |E] E Vi * +EE ni+ i |vx x E
Vi + =x ]{{h E { |E] E Vi *

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation
as a result of past events and it is probable that there will be
an outflow of resources and a reliable estimate can be made
of the amount of the obligation. Contingent Assets are neither
recognized nor disclosed in the financial statement . Contingent Liabilities are not provided for and are disclosed by way
of notes.

1.14 Provisions , Contingencies and Contingent Assets

166

+E <xx .

x]/NOTE 2

AllBank Finance Ltd.

J ]{{h/Notes on Accounts:
2.1:

{V / SHARE CAPITAL
(Figures in `)

lli/As at 31.03.2012
J/Number /Amount

/ Particulars

|vEi {V / Authorized Capital


100/- ` |iE E <C]
Equity Shares of `100/- each

lli/As at 31.03.2011
J/Number /Amount

1,500,000

150,000,000

1,500,000

150,000,000

1,500,000

150,000,000

1,500,000

150,000,000

Equity Shares of `100/- each fully paid up


At the commencement of the year

1,500,000

150,000,000

1,500,000

150,000,000

Add / (Less) : Changes during the year


E +i / At the end of the year

1,500,000

150,000,000

1,500,000

150,000,000

xMi, +nk B nk
Issued, Subscribed and Paid-up Capital

E + 100/- ` |iE E
{hi& |nk <C]

Vc/(P]B) E n x {ix

E{x <E bM E{x u J MB E |E]Eh


Disclosure of shares in the Company held by its holding company

h / Particulars
bM E{x E x
<n E
Name of the
Holding Company

<n E/Allahabad Bank

lli/As at 31.03.2012

lli/As at 31.03.2011

J/Number

/Amount

J/Number

/Amount

1,499,994

149,999,400

1,499,994

149,999,400

E{x {S |ii +vE vh Ex |iE vE


u vi vi h
Details in respect of shares in the Company held by each
Shareholder holding more than 5% shares:

h / Particulars
vE
E x

lli/As at 31.03.2012
vE u vi
vh
E{x E E

lli/As at 31.03.2011
vE u vi
E{x E E

Name of the
Shareholder

Number of shares of the


Company held by the
shareholder

% holding

Number of shares of
the Company held
by the shareholder

% holding

1,499,994

99.99

1,499,994

99.99

<n E
Allahabad Bank

167

+E <xx .
2.2: |Ii

AllBank Finance Ltd.

B +v/RESERVES AND SURPLUS

h/Particulars

(+Ec ` /Figures in `)

lli/As at 31.03.2012
/ Amount

x |Ii /General Reserve


E | /At the commencement of the year
Vc/(P]B) E n x J xE 15
E +iMi {ix |vx E Eh {ix
Add / (Less) : Changes on account

/ Amount

lli/As at 31.03.2011

/ Amount

853,411

1,060,253

(206,842)

/ Amount

of transitional provisions under


Accounting Standard 15 during the year

E +i / At the end of the year


E + B x h E
+x +v

853,411

853,411

Surplus as per Statement of Profit and Loss


At the commencement of the year

322,781,160

294,830,362

Vc/(P]B) : E n x {ix
Add / (Less) : Changes during the year

E +i
E/TOTAL
2.3: nPv

28,963,995

/At the end of the year

27,950,798
351,745,155

322,781,160

351,745,155

323,634,571

|vx/LONG TERM PROVISIONS

(+Ec ` /Figures in `)

h/Particulars

lli/As at 31.03.2012

ES i |vx/Provision for Employee Benefits OS]/Gratuity


+E xEnEh/Leave Encashment

lli / As at 31.03.2011

358,495

401,194

112,438

309,886

16,478,865

16,478,865

60,831

60,831

17,010,629

17,250,776

+x{V +i i |vx/
Provision for Non Performing Assets

|ii V/Security Deposit


E/TOTAL
2.4: +{v

|vx/ SHORT TERM PROVISIONS

(+Ec ` /Figures in `)

h/Particulars

lli/As at 31.03.2012

ES i |vx/Provision for Employee Benefits OS]/Gratuity


+E xEnEh/Leave Encashment
+E i |vx/Provision for Income Tax
+xM E i |vx/
Provision for Fringe Benefit Tax

E/TOTAL
168

lli /As at 31.03.2011

9,627

127,358

11,582

28,241

48,453,862

42,253,862

51,000

51,000

48,526,071

42,460,461

169

E / TOTAL

Capital Work-in-progress

{V v E |Mi {

Computer Software

E{] }]

Intangible Assets -

+i +i

(A+B)

Motor Vehicles

]x

Office Equipments

E ={Eh

Furniture and Fixtures

xS B CS

Plant and Machinery

j B x

B. Assets given on Lease

J. V { |nk +i

Motor Vehicles

]x

Office Equipments

E ={Eh

Furniture and Fixtures

xS B CS

A.Assets other
than on Lease

i +i Tangible Assets E. V E +iH +x


+i

h / Particulars

50,909,927

42,000
42,000

93,934

84,134
84,134

9,800
9,800

48,465,116

50,867,927

213,235

17,295,894

609,308

2,402,811

30,346,679

595,043

1,322,528

Addition

Balance
As on
31.03.2011

485,240

{vx

lli
31.03.2011

(A)

Disposal /
Adjustment

xih /
Vx

51,003,861

84,134
84,134

51,800
51,800

50,867,927

48,465,116

213,235

17,295,894

609,308

30,346,679

2,402,811

595,043

1,322,528

485,240

Balance
as on
31.03.2012

lli
31.03.2012

E vi /GROSS CARRYING AMOUNT

x]/Note 2.5
l +i / Fixed Assets
l +i E h/ DetaiIs of Fixed Assets
lli 31 S, 2012 E (a) As at 31st March 2012

Schedules Forming Part of the Accounts

J E M E { +xS

33,312,130

17,600
17,600

33,294,530

31,925,420

213,235

3,033,976

574,310

28,103,899

1,369,110

86,110

996,274

286,726

Balance
as on
31.03.2011

lli
31.03.2011

225,553

12,067
12,067

213,486

213,486

56,529

102,062

54,895

Addition

{vx

(B)

Disposal /
Adjustment

xih/
Vx

/DEPRECIATION

33,537,683

29,667
29,667

33,508,016

31,925,420

213,235

3,033,976

574,310

28,103,899

1,582,596

142,639

1,098,336

341,621

Balance
as on
31.03.2012

lli
31.03.2012

+E <xx .

17,466,178

84,134
84,134

22,133
22,133

17,359,911

16,539,696

14,261,918

34,998

2,242,780

820,215

452,404

224,192

143,619

Balance
as on
31.03.2012

lli
31.03.2012

17,597,797

24,400
24,400

17,573,397

16,539,696

14,261,918

34,998

2,242,780

1,033,701

508,933

326,254

198,514

Balance
as on
31.03.2011

lli
31.03.2011

NET CARRYING
AMOUNT (A-B)

x vi

AllBank Finance Ltd.

170

E /

TOTAL

Computer Software

E{] }]

Intangible Assets -

+i +i

(A+B)

Motor Vehicles

]x

Office Equipments

E ={Eh

Furniture and Fixtures

xS B CS

Plant and Machinery

j B x

B. Assets given on Lease

J. V { |nk +i

Motor Vehicles

]x

Office Equipments

E ={Eh

Furniture and Fixtures

xS B CS

A.Assets other
than on Lease

i +i/Tangible AssetsE. V E +iH +x


+i

h / Particulars

(b) As at 31st March 2011

51,176,500

71,098

42,000

71,098

51,134,500

48,465,116

42,000

71,098

66,643

213,235

17,295,894

609,308

30,346,679

2,669,384

595,043

1,593,556

4,455

Addition

Balance
As on
31.03.2010

480,785

{vx

lli
31.03.2010

(A)

337,671

337,671

337,671

337,671

Disposal /
Adjustment

xih /
Vx

50,909,927

42,000

42,000

50,867,927

48,465,116

213,235

17,295,894

609,308

30,346,679

2,402,811

595,043

1,322,528

485,240

Balance
as on
31.03.2011

lli
31.03.2011

E vi /GROSS CARRYING AMOUNT

Schedules Forming Part of the Accounts

J E M E { +xS

33,451,355

8,800

8,800

33,442,555

31,925,420

213,235

3,033,976

574,310

28,103,899

1,517,135

29,581

1,225,142

262,412

Balance
as on
31.03.2010

lli
31.03.2010

195,826

8,800

8,800

187,026

187,026

56,529

106,183

24,314

Addition

{vx

(B)

335,051

335,051

335,051

335,051

Disposal /
Adjustment

xih
Vx

33,312.120

17,600

17,600

33,294,530

31,925,420

213,235

3,033,976

574,310

28,103,899

1,369,110

86,110

996,274

286,726

Balance
as on
31.03.2011

lli
31.03.2010

/DEPRECIATION

+E <xx .
/ (In <

17,597,797

24,400

24,400

17,573,911

16,539,696

14,261,918

34,998

2,242,780

1,033,701

508,933

326,254

198,514

Balance
as on
31.03.2011

17,725,145

33,200

33,200

17,691,945

16,539,696

14,261,918

34,998

2,242,780

1,152,249

565,462

368,414

218,373

Balance
as on
31.03.2010

lli
lli
31.03.2011 31.03.2010

NET CARRYING
AMOUNT (A-B)

x vi

(h. )

AllBank Finance Ltd.

+E <xx .

xx Ex] x/NON-CURRENT INVESTMENTS


({-{hi& nk)/(Trade Fully Paid-up)
A. +xE]b / Unquoted

NOTE 2.6:

h/Particulars

AllBank Finance Ltd.

(+Ec ` /Figures in `)

lli

J/

As at 31.03.2012

Number

/SHARES
G |VC] .
` 10/- |iE E <C]

Book
Value

lli

Market
Value

J/

Number

As at 31.03.2011

Book
Value

Market
Value

Vikram Projects Ltd.


Equity Share of `10/- each

85,500

2,992,500

85,500

2,992,500

Harpartap Steel Ltd.


Equity Share of `10/- each

380,923

3,809,230

380,923

3,809,230

Moulik Finance & Resort Ltd.


Equity Share of `10/- each

119,700

1,197,000

119,700

1,197,000

Ritesh Polyesters Ltd.


Equity Share of `10/- each

58,300

874,500

58,300

874,500

Kalinga Cement Ltd.


Equity Share of `10/- each

150,000

1,500,000

150,000

1,500,000

6,400

64,000

6,400

64,000

Dewan Sugar Ltd.


Equity Share of `10/- each

650,000

6,500,000

650,000

6,500,000

Divya Chemicals Ltd.


Equity Share of `10/- each

50

1,538

50

1,538

10,000

851,900

10,000

851,900

|i{ ] .
` 10/- |iE E <C]
E <x Bb ] .
` 10/- |iE E <C]
i {<] .
` 10/- |iE E <C]
EM ] .
` 10/- |iE E <C]
B <x V .
` 10/- |iE E <C]
BCL Financial Services Ltd.
Equity Share of `10/- each

nx M .
` 10/- |iE E <C] ,
n EE .
` 10/- |iE E <C]

]C]E <b .
({ x ] E] .
E x Yi)
` 10/- |iE E <C]
Techtreck India Ltd.
( Formerly known as Nirmal
Metal Fabricators Ltd.)
Equity Share of `10/- each

171

+E <xx .
AllBank Finance Ltd.

(+Ec ` /Figures in `)

h/Particulars

lli

J/

As at 31.03.2012

Number

Book
Value

lli

Market
Value

J/

Number

As at 31.03.2011

Book
Value

Market
Value

x S VM Bb <x]] .
` 10/- |iE E <C]
New Century Leasing and
Investments Ltd.
Equity Share of `10/- each

106,000

2,507,960

106,000

2,507,960

40,000

757,200

40,000

757,200

28,000

795,200

28,000

795,200

25,000

1,017,500

25,000

1,017,500

126,200

4,181,006

126,200

4,181,006

27,049,534

14

x < +x Bx] .
` 10/- |iE E <C]
New Era Urban Amenities Ltd.
Equity Share of `10/- each

V] EE .
` 10/- |iE E <C]
Regent Chemicals Ltd.
Equity Share of `10/- each

MVi ] .
` 10/- |iE E <C]
Gujrat Filaments Ltd.
Equity Share of `10/- each


` 10/- |iE E <C]
Solar Busiforms Ltd.
Equity Share of `10/- each

x {xM .
` 10/- |iE E <C]
(x )
Niwas Spinnings Mills Ltd.
Equity Share of `10/- each
(Bonus Share)

E/TOTAL
x i |vx

1,400

1,400
27,049,534

14

Provision for Diminution in


Investment

27,049,520

172

27,049,520

+E <xx .

h/Particulars

AllBank Finance Ltd.


(+Ec ` /Figures in `)

lli

lli

As at 31.03.2012

J/

J/

Number

Book
Value

Market
Value

Number

Book
Value

Market
Value

500

50,000,000

Not available

500

50,000,000

Not available

30

30,000,000

Not available

30

30,000,000

Not available

100

10,000,000

Not available

100

10,000,000

Not available

200

20,000,000
110,000,000

Not available

200

20,000,000
110,000,000

Not available

bS/DEBENTURES
]] E{] .
`100,000 |iE E Bxb
Tata Capital Ltd.
NCD of `100,000/- each

x E{] .
`1,000,000 |iE E Bxb
Reliance Capital Ltd.
NCD of `1,000,000/- each

]{] <x E. .
`100,000 |iE E Bxb
Sriram Transport Finance Co. Ltd.
NCD of `100,000/- each

{] <VxM .
`100,000 |iE E Bxb
Patel Engineering Ltd.
NCD of `100,000/- each
E/TOTAL

/B. E]b/Quoted
h/Particulars

(+Ec ` /Figures in `)

lli

J/

As at 31.03.2012

Number

/SHARES
E ] .
`10/- |iE E <C]
(+i: |nk)
Malvika Steel Ltd.
Equity Share of `10/- each
(Partly paid up )

As at 31.03.2011

Book
Value

lli

Market
Value

J/

Number

As at 31.03.2011

Book
Value

Market
Value

48,600

1,944,000

48,600

1,944,000

Zuari Agro Chemicals Ltd.


Equity Share of `10/- each

25

250

12,355

25

250

ACC Ltd.
Equity Share of `10/- each

20

1,100

27,189

20

1,100

21,500

2,290

130,049

257,282

2,290

130,049

223,848

50,000

1,687,575
3,762,974

985,000
1,281,827

50,000

1,687,575
3,762,974

1,267,500
1,512,850

V+ BO EE .
`10/- |iE E <C]
B .
`10/- |iE E <C]
]] M V .
`1/- |iE E <C]

Tata Global Beverages Ltd.


Equity Share of `1/- each

BxBS{ .
`10/- |iE E <C]
NHPC Ltd.
Equity Share of `10/- each
E/TOTAL

x i |vx

Provision for Diminution in


Investment

2,646,574

173

2,109,323

+E <xx .
h/Particulars

AllBank Finance Ltd.


(+Ec ` /Figures in `)

lli

J/

lli

As at 31.03.2012

Number

Book
Value

Market
Value

J/

Number

As at 31.03.2011

Book
Value

Market
Value

v{j/BONDS
<b <]CS <x E.
`100,000 E E H v{j
India Infrastructure Finance
Co. Ltd.
Tax Free Bonds of `100,000/- each

500

50,000,000

49,284,400

500

50,000,000

50,000,000

500

50,000,000

48,050,000

500

50,000,000

50,000,000

100,000,000

97,334,400

100,000,000

100,000,000

<bx <x E{x


`100,000 E E H v{j

Indian Railway Finance Corporation


Tax Free Bonds of `100,000/- each

/ TOTAL

h/Particulars

lli

J/

Number

As at 31.03.2012

Book
Value

lli

Market
Value

J/

As at 31.03.2011

2,000,000

20,000,000

20,058,800

2,500,000

2,627,750

Number

Book
Market
Value ValueBONDS

S+ b
x< B B
B]{ +<BxB]
V BC -Ol
MUTUAL FUND
Birla Sunlife MF
FTPInst.Series
CX Growth

bB{ EE B B
E - 25 b-Ol
DSP BlackrockMF
Focus 25 Fund Growth

250,000

BSbB B B
BB{ 390b BB+ 12(1)
- Ol
HDFC MF
FMP 390 D Mar 12(1)
Growth

3,800,000

38,000,000

38,026,220

1,250,000

12,500,000

13,347,750

50,500,000

51,373,970

E]E BB
BB{ V 52
-Ol
Kotak MF
FMP Series 52
Growth

/ TOTAL

174

22,500,000

22,686,550

+E <xx .
AllBank Finance Ltd.

(+Ec ` /Figures in `)

h/Particulars
+xE]b x E E

lli/As at 31.03.2012

lli/As at 31.303.2011

137,049,534

137,049,534

154,262,974

126,262,974

149,990,197

124,199,400

29,696,094

29,158,843

Aggregate amount of Unquoted Investments

E]b x E E
Aggregate amount of Quoted Investments

E]b x E V /Market Value of Quoted Investments


x E i E |vx
Aggregate provision for diminution in value of investments

2.7:

nPEE @h B +O
LONG TERM LOANS AND ADVANCES

(|ii + +SU x M)/(Secured and Considered good)


h/Particulars
lli/As at 31.03.2012
]x V/Telephone Deposit
51,000
{ EB MB JS/Prepaid Expenses
173,430
+vE E @h B ={Si V/

(+Ec ` /Figures in `)

lli/As at 31.303.2011
51,000
331,620

Loan to Officer and Accrued Interest

628,519

602,245

E/TOTAL

852,949

984,865

175

+E <xx .

S x/ CURRENT INVESTMENTS
(]b- {hi |nk)/(Trade Fully Paid-up)

AllBank Finance Ltd.

2.8:

h/Particulars
J/

Number

S+ b
x< BB
Si xv- lMi
b b, <x]]

MUTUAL FUND
Birla Sunlife MF
Savings Fund
Institutional Daily Div. Reinvestment

B]{ <] V
BC Ol

FTPInst.Series CX
Growth

bB{ EE BB
E 25 b Ol

DSP BlackrockMF
Focus 25 Fund Growth

BSbB BB
BB{ 13 B S10V
BB{ 370 b
S 11(4) V
BB{ 13 B i.11(1)V
HDFC MF
FMP 13M Mar 10 G
FMP 370D Mar11(4)-G
FMP 13M Sept11(1) G

+<+<+< BB
+vE +i
{x 1. <]
C <xE {x
nxE {xx

ICICI MF
Half Yearly Interval
Plan I, Inst. Dividend
Flexible Income Plan
Daily Dividend
Reinvest

+<bB BB
x xV b
E

(+Ec < /Figures in <)

lli

As at 31.03.2012

Book
Value

lli

Market
Value

20,668.565

2,068,261

2,068,261

2,000,000

20,000,000

21,918,800

250,000

2,500,000

2,425,750

1,200,000

27,531.052

12,000,000

2,910,996

1,186,942.982

11,991,986

Book
Value

V
Market
Value

2,000,000
1,900,000

20,000,000
19,000,000

21,492,400
19,083,030

999,880.011

10,000,000

10,014,098

1,443.872

14,439

14,533

2,027,879.54

20,431,233

20,492,128

2,910,996

+] ] b
E

BB

12,549,240

IDFC MF
Money ManagerFund
Monthly Dividend

Ultra Short Fund


Monthly Dividend

J/

Number

As at 31.03.2011

11,996,314

176

+E <xx .
AllBank Finance Ltd.

S x/ CURRENT INVESTMENTS
(]b- {hi |nk)/(Trade Fully Paid-up)

2.8:

h/Particulars

(+Ec ` /Figures in `)

lli

J/

Number

As at 31.03.2012

Book
Value

lli

Market
Value

J/

Number

As at 31.03.2011

Book
Value

Market
Value

Cb Vx b
XIX-V 11-Ol
Reliance MF
Fixed Horizon Fund
XIX Sr. 11 Growth

2,000,000

20,000,000

20,101,600

SBI MF
Debt Fund Series
370 Days 9 Growth

2,000,000

20,000,000

20,340,000

5,186.259

5,187,369

5,187,369

B+< BB
b] b V
370 nx-9-Ol

b] b V
367 nx-18-Ol

Debt Fund Series


367 Days 18 Growth

]+< BB
]+< ]V Bb]V b
nxE

500,000

5,000,000

5,000,000

UTI MF
UTI Treasury
Advantage Fund
Daily Dividend

B] <xE bV IX II (369 nx)


Ol

FT Income Fund
Series IX II(369 days)
Growth

1,800,000

18,000,000

19,643,220

1,500,000

15,000,000

15,032,250

BB{ E V
03/12- Ol

FMP Yearly Series


03/12 Growth

E / TOTAL

89,471,243

114,633,041

177

+E <xx .

]b |{ (+|ii)/TRADE RECEIVABLES (UNSECURED)

2.9:

AllBank Finance Ltd.

(+Ec ` /Figures in `)

h/Particulars
v nxn/Sundry Debtors
E) U +vE +v E @h
nMv Z M<

lli / As at 31.03.2012

lli / As at 31.303.2011

a) Debts outstanding for a period exceeding six months


Considered doubtful
b)

6,005,077

+x @h/Other Debts

6,005,077

607,669

57,632

6,612,746

6,062,709

6,005,077

6,005,077

P]B : nMv @h i |vx


Less: Provision for doubtful debts
2.10:

607,669

xEn B xEn i/CASH AND CASH EQUIVALENTS

h/Particulars

57,632

(+Ec ` /Figures in `)

lli /As at 31.03.2012

lli /As at 31.303.2011

E /Balances with Banks


S Ji /In Current Accounts
l xEn/Cash in Hand
E +x /Other Balances with Banks
{]M il 3 +vE Ei 12 E +v E
{{Ci n V

352,252
1,823

3,317,020
5,349

In Term Deposit having maturity period more than


3 months but less than 12 months from the reporting
date

91,664,815

50,000,000

E/TOTAL

92,018,890

53,322,369

2.11:

+{v @h B +O /
(+|ii- +SU x M)

SHORT TERM LOANS AND ADVANCES


(Unsecured Considered Good)

h/Particulars
+O/

(+Ec ` /Figures in `)

lli /As at 31.03.2012

Advances

+i-E{] V/Inter-corporate Deposit


P]B : nMv V i |vx

lli /As at 31.03.2011


911,021

940,765
200,000

(200,000)

106,931,874
90,633
101,372

101,404,013
90,633
10,635
101,372
1,464,000

(1,464,000

183,465

144,865

108,218,365

102,692,283

2,00,000

Less : Provision for doubtful deposit

2,00,000

+O +E (i { E] M E i)
Advance Income Tax ( Including Tax Deducted at Source)
+O +xM E/Advance Fringe Benefit Tax
+O E/Advance Service Tax
|{ V E b/Income Tax Refund Receivable
{VMi i |nk +O/Advance paid for Capital Goods

1,464,000

Less : Provision for doubtful advance

1,464,000

P]B : nMv +O i |vx

+vE E @h B ={Si V

Loans to Officers and Accrued Interest

E/TOTAL
178

+E <xx .

2.12: +x

S +i / OTHER CURRENT ASSETS

h/Particulars

lli /As at 31.03.2012

EB { ]E/Stock On-Hire
P]B: +in k |/Less: Overdue Finance Charges
P]B: EB { nMv ]E i |vx
Less: Provision for doubtful Stock - On Hire
|{ EV/Brokerage Receivable
={Si Ei +n V/Interest Accrued but not due
x {/On Investment
n V {/On Term Deposit

E/TOTAL
2.13:

lli /As at 31.03.2011

11,911,409
(2,523,617)

11,911,409
(2,523,617)

(9,387,792)
766,288

(9,387,792)
315,769

3,798,972
2,489,212

4,795,876
12,430,689

7,054,472

17,542,334

{Sx +/REVENUE FROM OPERATIONS

h/Particulars

AllBank Finance Ltd.


(+Ec ` /Figures in `)

(+Ec ` /Figures in `)

{i / Year ended on

{i / Year ended on

31.03.2012

31.03.2011

4,428,037

1,175,000

S] EM +/+x E +vi +
Merchant Banking Income/Other fee based income
B|V E/Appraisal Fee

+V E/Arrangers Fee
1,298,972
9,109,863
bS/C] ]]{ /Debenture / Security Trusteeship Fee 908,735
444,167
Ex /Share Valuation Fee
25,000
50,000
+x/Others
148,405
4,114
E (E)/TOTAL (A)
6,809,149
10,783,144
S+ b ih n/Mutual Fund Distribution Brokerage
3,566,886
15,643,869
{ +v E +-BB EV/Prior Period Income MF Brokerage
707,463
E (J)/TOTAL (B)
4,274,349
15,643,869
(E+J)(A + B)
11,083,498
26,427,013
(+Ec ` /Figures in `)
2.14: +x + / OTHER INCOME
h/Particulars
{i / Year ended on {i / Year ended on
x +/Investment Income
b B bS { V/ Interest on Bonds and Debentures
x E G { /Profit on sale of Investments
S+ b x] { /Dividend on Mutual Fund Units
{ /Dividend on Shares
l +i E G { /Profit on sale of Fixed Assets
E (E)/TOTAL (A)
E n V { V [(]bB-689,495)
({ 618,086)] (J)
Interest on Fixed Deposits with Bank
[ TDS 689,495/- ( Pre. Year 618,086/-)] (B)
+x/Others
]x E E M |vx/Provision written back
+x{V +i/Non Performing Assets
+x/Others
] @h { V/Interest on Staff Loan
v +/Miscellaneous Income
{ +v E +/Prior Period Income
E (M)/TOTAL (C)

(E+J+M)

(A+B+C)

179

31.03.2012

31.03.2011

17,734,587
7,625,094
2,142,797
31,025
27,533,503

17,691,972
153,863
5,364,971
28,650
2,880
23,242,336

6,712,833

6,180,841

249
76,072
72,446
15,300
164,067

1,681,929
76,988
79,008
303,077
2,141,002

34,410.403

31,564,179

+E <xx .
2.15:

ES i v JS /

AllBank Finance Ltd.


EMPLOYEE BENEFITS EXPENSES

h/Particulars

(+Ec ` /Figures in `)

{i / Year ended on

{i / Year ended on

31.03.2012

31.03.2011

3,398,157

3,572,635

231,568
335,812

289,695
808,018

SEi JS/Medical Expenses

1,040,073

247,143

E/TOTAL

5,005,610

4,917,491

ix B k/ Salary and Allowances


xv B {x b +nx
Contribution to Provident and Pension Fund
] EhE JS/Staff Welfare Expenses

2.16: +x

JS

OTHER EXPENSES

h/Particulars

(+Ec ` /Figures in `)

{i / Year ended on

{i / Year ended on

31.03.2012

31.03.2011

j B x / Travelling and Conveyance


|E B ti / Light and Electricity
| / Insurance Charges
+nx B ni E / Subscription and Membership Fees
J{IE E {E / Auditors Remuneration
J{I E / Audit Fee
E J{I E / Tax Audit Fee
]Ex E / Certification Fee
j /Travelling
xnE j B b `E v JS /
Directors Travelling and Board Meeting Expenses

546,714

533,557

249,128

252,643

11,446

13,128

1,099,711

1,096,035

25,000

25,000

7,000

7,000

5,000

5,000

131,441

97,342

663,670

805,751

77,873

79,126

i B J-J / Repairs and maintenance


j B x / Plant and Machinery
+x / Others
v JS / Miscellaneous Expenses
{ +v E JS/Prior Period Expenses
n B E/Rates and Taxes
x E i |vx

455,803

404,134

1284,710

1,655,862

3,747

3,086,370

Provision for diminution in value of Investments

537,500

5,098,743

9,326,190

1,265,242

E/TOTAL

180

+E <xx .

AllBank Finance Ltd.

2.17 +EE niB VxE B |vx x E M


(E) z +{ |vEh E I i , V E{x
i E +{I Ei , E v ni +E B V
E niB

2.17.

Contingent liabilities not provided for :

(a)

Disputed Income Tax liability in respect of matters


pending before various Appellate authorities where
the Company expects to succeed.

(+Ec ` /Figures in `)

xvh / Assessment Year

31.03.2012

31.03.2011

2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10

627.62
23.44
15.32
55.18
8.07
142.61

627.62
70.52
23.44
15.32
55.18
8.07
-

E / Total

872.24

800.15

E ni E +Ec {ix +vx +{ { BBB +


+i] +i& V {IE E {I +l r {i +n E
Eh + *
(J)E{x E r @h E { E x EB MB n
` 1175.76 J ({ ` 1175.76 J)
(M) E{x E E ES u ix vx i n < E]
BE ] SE n E M< * il{ =E B |vx
x E M CE |vx E i E =E {I Vi
* <E +iH E xMh *
(P) E{x x +Mi 2008 +] EE Bb |VC]
.(21.01.2010 x {ii: Ox+l Bb |VC]
) E +<{+ < i b xV E E E* MVi
Bx+< EE xE BE +x E{x x +] EE +
<E |] E r x BE n nJ E
n il S] E, ij xnE + J{IE il
] E {] x n* + E <x x 04.08.2009
E =H ] E =k BE Ji h nJ E
+ i +vxh i i * < v
+ E <x E r E< Ii{i +l E x
xi *
(R) BE |<] ]b E{x u =x =c x b{]
E. . E E G EB Vx i BE nJ
E M * Exx E +x E{x E E
+xIh x *
2.18 xx x E +x . .. n< u
13.05.1992 E + E <x . E { MB E
E{x E {I {k E {h +ih x M *
inx, E {nM E iJ E{x E
x M< + =E n ={ { Pi i ={S +
+vE { <E E * ={H +n E {h{
E +Vx E nPv x x M *

The change in the figure of the tax liability is due to


order passed against or in favour of ABFL, partly
deposited and aggrieved, preferred appeal.
(b)

Claims against the Company not acknowledged as


Debts: ` 1,175.76 lakh. (Previous Year ` 1,175.76
lakh)

(c)

A writ Petition has been filed by some employees of


the Company in Delhi High Court for Salary revision.
As the Company is of the view that the case is not
maintainable and as the amount remains unquantified, no provision has been made.

(d)

The Company had acted as lead manager for the


IPO issue of Austral Coke & Projects Limited (name
changed to Greenearth Resources and Projects Ltd.
w.e.f. 21.01.2010) in August, 2008. Another company
namely, Gujarat NRE Coke Ltd. filed civil suits against
the Austral Coke and its promoters and also made
the Merchant Bankers, Independent directors,
Auditors and Solicitors as party to the suit. AllBank
Finance had filed a written statement on 04.08.2009
in response to the said civil suit and since then the
matter is pending for adjudication. There is no
quantification of any compensation or amount against
AllBank Finance Ltd.

(e)

A case has been filed by a private limited company


for effecting sale of The Orissa Minerals Development
Company Ltds share to them. According to the latest
development, the company is of the view that the case
is not maintainable.

2.18.

As per the order of the Honble Special Court, the


delivery of shares on 13.05.1992, by M/s V B Desai
to AllBank Finance Ltd., constituted complete transfer
of property in the shares in favour of the Company.
Accordingly, the Company became the owner of the
shares from the date of delivery of the shares and
was entitled to all accretions and rights declared
thereafter. Pursuant to the abovementioned order, the
acquisition of the shares has been considered as
Long Term Investment.

181

+E <xx .
AllBank Finance Ltd.

2.19 +O +E, i { E E]i il |{ +E {


lli 31.03.2012 E ` 1011.21 J (31.03.2011
E ` 888.96 J) * Ex B +{ E
z i { Vx i i *

2.19.

2.20

Advance income tax, tax deducted at source, income


tax refund receivable, interest tax refund receivable
and advance fringe benefit tax amounted to ` 1011.21
lakhs as on 31.03.2012 (` 888.96 lakhs as on
31.03.2011 ) are pending adjustment at various stages
of assessments and appeals.

2.20.

(+Ec ` /Figures in `)
2011-12

2010-11

28,963,995

27,950,799

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

100

100

19.31

18.63

E {Si (x] E { |H)


Profit after Tax ( used as Numerator )

E + <C] E J /
Number of Equity Share at the beginning of the year

E +i <C] E J /

Number of Equity Share at the end of the year

E n x E <C] E i +i J
(bxx] E { |H)
Weighted average number of Equity Shares outstanding
during the year ( used as denominator )

<C] E x /

Nomi Nominal value of Equity Share `

|i + b<]b +Vx /
Basic and diluted earnings per Share `

2.21 SE E{x E Miv BE |J Jb +li


{V V + r Miv E +iMi +i + ME
Jb E +iMi +i: i xn JE lx u V
J xE (BB -17) Jb {]M +{Ii Jb {] E
|E]Eh |V x *
2.22:

2.21.

As the companys business activity falls within a single


primary business segment viz. dealing in Capital
Markets and allied activities and in a single
geographical segment, the disclosure requirements
of Accounting Standard ( AS 17 ) Segment
Reporting issued by The Institute of Chartered
Accountants of India are not applicable.

|v xnE E {v / Managing Directors Remuneration

ix/Salary
Ex E/House Rent
xv +nx/Contribution to Provident Fund
+x /Other Benefits
OS]/OS] i |vx/Gratuity/ Provision for Gratuity
+E xEnEh/+E xEnEh i |vx
Leave Encashment/Provision for Leave Encashment

E / Total
2.23. i xn JE lx u V J xE 22
+ { E i J E +x E{x x +lMi E E
J * E{x E Bx{B + nMv +i {
|vx =i{z c j +lMi E +i * il{
E{h fM +lMi E ni+ E iE +lMi
E +i E +Yi E M + < |E <E
Ji { E< | x {c * +lMi E +i +
ni+ E h < |E :

2.23

182

2011-12

2010-11

3,29,032

600,000

1,31,613

240,000

39,484

72,000

1,67258

321,592

16,873

40,820

226,092

28,241

910,352

1,302,653

In accordance with Accounting Standard 22 Accounting for Taxes on Income issued by The
Institute of Chartered Accountants of India, the
Company has accounted for deferred tax. The
Company has significant amount of deferred tax
assets arising out of provisions made on NPA and
doubtful debts. However as a matter of prudence,
deferred tax assets have been recognized to the
extent of deferred tax liability and as such there is no
impact of the same in these accounts. The component
of deferred tax assets and liabilities are as follows :-

+E <xx .
AllBank Finance Ltd.
(+Ec ` /Figures in `)

h/Particulars

lli/As on
31.03.2011

i @h

lli/As on

(Charge) /Credit
for the year

31.03.2012

E Eh +lMi E ni
Deferred Tax Liability on account of depreciation

5,430,210

229,083

5,201,127

Deferred Tax Assets on account of provision on NPA


and doubtful debts

5,430,210

229,083

5,201,127

Bx{B + +v @h { |vx E Eh
+lMi E +i
+lMi E +i/niB (x)

Deferred Tax Assets / Liabilities (Net)

2.24. + + E +{iEi ={v Sx E +x


EB MB +xvh <G, P B v =t E
+vx, 2006 E +iMi {i E< G + P
=t x *

2.24

To the extent identified from the information available


from suppliers of goods and services, there are no
macro and small enterprises being a supplier as
defined under Micro, Small and Medium enterprises
Development Act, 2006.

2.25.i xn JE lx u V J xE
(BB-28) <{] + B] E +x E< +xVE
x x *
2.26.i xn JE lx u V J xE
(BB-18) vi {] |E]Eh E +x vi {]
|E]Eh xxx *

2.25

There is no impairment loss in terms of the Accounting


Standard ( AS 28 ) Impairment of Assets issued
by The Institute of Chartered Accountants of India.

2.26

Related Party disclosures as required in terms of


Accounting standard ( AS 18 ) Related Party
Disclosures issued by the Institute of Chartered
Accountants of India are as under :

bM E{x-<n E
|J |vx EE- |n +EE,
Bb B <+ (18.10.11 iE)

Holding Company Allahabad Bank


Key Management Personnel - Mr. Prasad Akolkar,
MD & CEO (up to 18.10.11)

bM E{x /

(In `)

Holding Company

|J |vx EE/Key Management Personnel


2011-12

2010-11

6,712,833

6,180,841

|vx nB/Management Contracts

780,300

314,791

|{i/Receiving of Services

253,185

256,571

{v/Remuneration

n V/Term Deposit

91,664,815

50,000,000

S V/Current Deposit

352,252

3,317,020

xn/Creditors

858,965

12,495

l V { V/Interest on Fixed Deposit

={H vi {] E Sx = iE |E] E
M< Vix ={v Sx E +v { |vx u +xvi
E M *
2.27. |vx E , E{x E x S +i,
@h B +O E Mi V E E ix

2011-12

2010-11

910,352

1,302,653

The above related party information is disclosed to


the extent such parties have been identified by the
management on the basis of information available.
This is relied upon by the auditors.
2.27

183

In the opinion of the Management, current assets,


loans & advances have a value on realization in the

+E <xx .
AllBank Finance Ltd.

{j n< M< E *

ordinary course of the Companys business which is


at least equal to the amount at which they are stated
in the Balance Sheet.

2.28. 2007-08 E J{I {] EB MB J{I


]{{h E +x x E bM V ]] ]17,040 <C] , +Bb .-6,600 <C]
+ x x -7,800 <C] , E v <n
E ] J b{V] vi BE {lE b{V]
Ji C<] +<b-10123882 E l J M*
2.29. <n E xx . (ix +E <x .)
+IE + {i l* E{x +{x xi
E n x <n E + <E C<] E + |ii
vh Ei * < |E <n E xx . <x
|ii E +IE E { E E l*
|ii <n E xx E x l ]]
], +Bb . + x x E |ii E V
E + E <x . E b{ Ji J M< * <x
E |ii E E{x E +i x x M
* <E +iH E{x u 31 S 2012 iE <x E{x
|{i ` 7055148 J E E E{x E
+ x x M + <x S ni E { n
M *
E{x x < v ij vE VE
+x + E <x . <x E x /x
Ei *v Ei E <n E <x
E + E <x . +{x x +ii Ex E
B Exx { En *
2.30. i { E M< E E]i E E v Ji nJ<
nx ` 21194220 E E k 2001-02
{ E +v vi * E{x x vi E xvh
i n E M</+i { n M</i +E h
E v <x |] E vx i BE ]C E]]
xH E * ]C E]] x +{x +i {]/xE
|ii E nB V E{x E Ei{ Vx
E Z n M + |vx |] E Vx E
Z E | Ex { BE +x ij ]C E]] E
|{i Ex E <SUE *
2.31 E{x x x< n E +{x |ii E i i
2011 ` 84134/- E xS Jn E
k 2012-13 S VBM* < |E < l
+i {V b+<{ E { n M +
<B k 2011-12 E n x <x +i {
x E M **
2.32.E{x (J xE) x 2006 +vSi J xE
15 ES E +iMi +{Ii |E]x xS nB MB

2.28

As per the audit observation made in audit report of


the year 2007-08, separate depository account vide
client ID - 10123882 with Allahabad Bank, Fort Branch
Depository, had been duly opened in regard to the
holding of investments, such as Tata Motors 17,040
equity shares , OMDC Ltd. 6,600 equity shares and
Winsome Yarns 7,800 equity shares.

2.29

Allahabad Bank Nominees Ltd. (presently named


AllBank Finance Ltd.) was engaged in custodial
services. The Company, in regular course of business,
used to hold securities on behalf of Allahabad Bank
and its clients. Allahabad Bank Nominees Ltd., as
such, was acting as Custodian of these securities. All
these securities are in the name of Allahabad Bank
Nominees Ltd. except securities of companies namely
Orissa Mineral Development Company Ltd., Tata
Motors Ltd., Winsome Yarns Ltd. which are held in
the DP Account of AllBank Finance Ltd. None of these
securities are considered as assets in the books of
the Company. Moreover, dividend amounting to
` 70,55,148/- received by Company till 31st March,
2012 from these companies has not been considered
as income in the books of the Company and the same
has been shown as current liabilities.

2.30

The Company has also obtained independent legal


opinion in this regard as per which, AllBank Finance
Limited is not / could not be the owner of these
shares.The legal opinion also says that Allahabad
Bank is legally entitled to have the shares transferred
in their name from AllBank Finance Limited.
With regard to the Tax deducted at Source (TDS),
amounting to ` 2, 11,94,220 appearing in the accounts
pertaining to periods prior to the FY 2001-02, the
company appointed a Tax Consultant for reconciliation
of these entries with reference to income tax returns
filed / finalized/ pending for the relevant assessment
years. The Tax consultant has submitted its final report
/ findings suggesting some adjustments in the books
of the company and the management is desirous of
obtaining opinion from another independent Tax
Consultant in the matter before giving effect of the
suggested adjustment entries.

2.31

The company has purchased furniture amounting to


` 84,134/- in Sept, 2011 for its proposed New Delhi
office which is scheduled to be operational during the
FY 2012-13. As such, the same has been shown in
the Fixed Assets as Capital W.I.P. and therefore no
depreciation has been booked on such assets during
the FY 2011-12.

2.32

The disclosures required under Accounting Standard


15 Employee Benefits notified in the Companies
(Accounting Standards) Rules 2006, are given
below :

184

+E <xx .
AllBank Finance Ltd.

{i +nx Vx
xv ES E +nx
` 2,89,695)
{i Vx

Defined Contribution Plan


`

2,31,568 ({U -

Employer s
Contribution
to
Provident
` 2,31,568/- (Previous Year ` 2,89,695/-)

Fund:

Defined Benefit Plan

OS] + +E vi ni E ix |VC]b
x] Gb] {ri E |M Ei B EE x E +v {
xvi E Vi *
E. {i ni E +l + <i E vx

The present value of obligation relating to gratuity and leave


is determined based on actuarial valuation using the Projected
Unit Credit Method.
a.

Reconciliation of opening and closing balances of Defined


Benefit Obligation Gratuity
(+Ec ` /Figures in `)
2011-12

2010-11

528,552
113,323
43,606
(173,128)
(144,231)

738,259
118,061
62,843
(19,246)
(371,365)

Defined Benefit obligation at year end

368,122

528,552

J. xVi +i E =Si E +l + <i E


vx

b. Reconciliation of Opening and closing balances


of fair value of plan assets

E | {i ni/
Defined Benefit obligation at beginning of the year
S Mi /Current Service Cost
V Mi /Interest Cost
EE x/() /Actuarial Losses / ( Gain )
+n EB MB /Benefits Paid

E +i {i ni /

(+Ec ` /Figures in `)
2011-12

2010-11

Fair value of Plan Assets at the beginning of the year

Expected return on plan Assets


EE /(x)/Actuarial Gain / (Losses)
ES E +nx/Contributions by Employer
+n EB MB /Benefits Paid

144,231
(144,231)

371,365
(371,365)

Fair value of Plan Assets at year end

E | xVi +i E =Si /
xVi +i { +{Ii |i /

E +i xVi +i E =Si

M. +i + ni E =Si E vx

c. Reconciliation of fair value of assets and obligations


(+Ec ` /Figures in `)

xVi +i E =Si /Fair value of Plan Assets


ni E ix /Present value of obligation
ix {j +Yi /Amount recognized in Balance Sheet
P. E nx +Yi JS

31st March 2012

31st March,2011

368,122
368,122

528,552
528,552

d. Expenses recognised during the year

(+Ec ` /Figures in `)

S Mi/Current Service Cost


V Mi/Interest Cost
xVi +i { +{Ii |i/Expected return on Plan Assets
EE ()/x /Actuarial (gain) / loss
-x Ji +Yi /Expenses Recognized in Profit and Loss Account
185

2011-12

2010-11

113,323
43,606
(173,128)
(16,199)

118,061
62,843
(19,246)
161,658

+E <xx .
AllBank Finance Ltd.

R EE {xx
]] ] : B+< (1994-1996) +i

e.

Actuarial assumptions
Mortality Table : LIC (1994 1996 ) Ultimate

{i /Year ended

31st March 2012

31st March,2011

x< n (|i )/Discount rate ( per annum)


ix r (|i )/ Salary Escalation ( per annum )

8.75%
7.00%

8.25%
7.00%

2.33. V E +E {U E +Ec E {xi/


{xli E M V <x S E o
+Ec E l ix x V E*

2.33

Previous years figures have been rearranged /


regrouped wherever necessary, to make those
comparable with the corresponding figures for the
current year.

x] 2.1 2.33 E E iIEi


Signatories to Notes 2.1 to 2.33

il E {] E u/Vide our Report of even date


Ei b Bb /For De & Bose
xn JE/Chartered Accountants

V { n+/J.P.Dua
+vI/Chairman

i b/Subrata De
{]x/Partner
B.+. xE/M R Nayak
ni . 54962/Membership No.54962
xnE/Director
{VEh J 302175E/Firm Registration No.302175E
lx/Place : EEi/ Kolkata
nxE/Date : 28.4.2012

n/Subir Das
xnE/Director
B.. ]]S/A.B. Bhattacharjee
xnE/Director

/Shreya Shah
E{x S/Company Secretary

186

J{IE E {]

AUDITORS REPORT

muJt b m=gdK,

TO THE MEMBERS

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1.

2.

3.

4.

5.

6.

AllBank Finance Limited.

x 31 S, 2012 E lli +E <xx ]b


E ix {j, + =E l Mx = iJ E {i
i B x rJJhK + xEn | h E J{I
E * Vx { x {] E n iI EB * <x
k h E Vn E{x |vx E * =kni
+{x J{I E +v { <x k h { +{x
+i H Ex *
x +{x J{I xi: i Ei J{I
xnb E +x E * =x xE E +{I E <
v =Si +x |{i Ex i J{I E E C
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1.

We have audited the attached Balance Sheet of AllBank


Finance Limited as at 31 st March , 2012 , the related
Statement of Profit and Loss and Cash Flow Statement
for the year ended on that date annexed thereto, which
we have signed under reference to this report. These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion
on these financial statements based on our audit.

2.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for
our opinion.

E{x +vx, 1956 E v 227 E ={v (4E)


E +x, i fuU Exp E u V E{x (J{IE
E {]) +n, 2003, E{x (J{IE E {]) (vx)
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E +v { + n M< Sx il {]Eh E +x
=H +n E +xSUn 4 B 5 =Ji { BE
h +xv E { <E l Mx Ei *

3.

As required by the Companies (Auditors Report) Order,


2003, as amended by the Companies ( Auditors Report )
Order,2004 , issued by the Central Government of India
in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks of the
books and records of the Company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said order.

4.

The Company has submitted application for renewal of


certificate of registration as a Merchant Banker at Securities and Exchange Board of India effective from
25.07.2011. Earlier to this, the Company was registered
with Reserve Bank of India as Non Banking Finance Company upto 11.05.2005. Though the activities under Non
Banking Finance Companies had been discontinued,
some accounts of past activities are still continuing.

E{x x i |ii B x b b S] E i
{VEh |h{j fuU lJefUhK nu;w 25.07.2011 fUtu yJu=l
;w; E * < { E{x 11.05.2005 iE i
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M EM k E{x E +iMi Miv n E n M< l
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i V E u V M-EM k E{x J{I
{] (V E ) xn, 2000 u E M< +{I E +x
E< {] ln x< M< CE E{x 25.07.2005 S]
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={H {] E {O 3 5 ]{{h E +,
ltux 2.29 YJk ltux 2.30 mu tuFt vh rxvKe fUt mk=C E t,
{] Ei E :
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+E l*
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, E{x u v E +{I E +x{ Si J
J M< *

5. As required by Non Banking Financial Companies Auditors Report ( Reserve Bank ) Directions, 2000, issued by
the Reserve Bank of India , no report is made as the Company became Merchant Banking Company with effect from
25.07.2005.
6.

187

Further to our comments in paragraphs 3 to 5 above and


refer to Note 2.29 and Note 2.30 of Notes of Accounts ,
we report that :
a) We have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by
law have been kept by the Company so far as appears
from our examination of those books;

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AllBank Finance Ltd.

M) < {] i ix-{j, -x rJJhK B xEn


| h E{x E J Ji *

c) The Balance Sheet, the Statement of Profit and Loss


and the Cash Flow Statement dealt with by this report
are in agreement with the books of account;

P) < {] E v ix {j, YJk x


rJJhK + xEn | h E{x +vx 1956 E
v 211 E ={v (3) ni J xE E
+x ;

d) In our opinion, the Balance Sheet , the Statement of


Profit and Loss and the Cash Flow Statement dealt
with by these report comply with the accounting
standards referred to in sub-section (3C) of section
211 of the Companies Act, 1956 ;

R) xnE |{i Ji +nx il b E Eb E


+x, Si Ei E 31 S, 2012 E lli
E< xnE E{x +vx, 1956 E v 274 E
={v (1) E Jhb (V) E +iMi xH i +M x
*

e) On the basis of written representations received from


the Directors and taken on record by the Board of
Directors, we report that none of the directors is
disqualified as on March 31, 2012 from being
appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Companies Act, 1956;

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{]Eh E +x Eli k J YJk stu rfU tuFt
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E{x +vx 1956 u xvi { VxE |nx
Ei B xi: i Ei J ri E
+x{ + x{I li |ii Ei :

f) In our opinion and to the best of our information and


according to the explanations given to us, the said
financial statements and read together with the
accounting policies and other notes thereon give the
information required by the Companies Act, 1956, in
the manner so required and give a true and fair view
in conformity with the accounting principles generally
accepted in India :

i)
ii)
iii)

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i)

in the case of the Balance sheet, of the state of


affairs of the Company as at March 31, 2012;

ii)

in the case of the Statement of Profit and Loss ,


of the profit for the year ended on that date ;
and,

iii)

in the case of the Cash Flow Statement, of the


cash flow for the year ended on that date.

Date: 28th April, 2012


Place : Kolkata

188

Subrata De
Partner.
Membership No. 54962
For & on behalf of
DE & BOSE
Chartered Accountants
Firm Registration No. 302175E

il E {] E { 3
ni +xv

Annexure referred to in paragraph 3 of our


report of even date

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Re: AllBank Finance Limited

1. (E) E{x x jiE h B +S +i E li


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(J) {] E M E E nx |vx u i
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i{x E BE xi EG |Si V
S E{x E +E B <E +i E {
E nJi B iEMi * E +J + iE
<x] E S E< Mi x {< M<*

1. a.

The Company has maintained proper records showing full particulars including quantitative details and
situations of its fixed assets.

b.

It has been explained that all the assets have not been
physically verified by the management during the year,
but there is a regular program of verification which ,
in our opinion, is reasonable having regard to the size
of the Company and nature of its assets. No material
discrepancies between the book records and the
physical inventory have been noticed.

c.

In our opinion and according to the information and


explanations given to us, no part of the fixed assets
has been disposed of by the Company during the
year.

(M) + nB MB {]Eh E +x JMo


fuU =tihtl fkUvle lu yvle rfUme yat mvrt E M fUt
rlvxtl ln rfUgt ni>
2. E{x E E |Ei E +x x E S E
+Ei x *
3. (E) E{x x E{x +vx, 1956 E v 301 E +iMi
+xIi V] E E{x, |iX x
{] E/ x E< |ii +|ii @h n x
=x *
(J) B V E{x x E Jn +l {]]
E gt y;h fUtvtuohux sbty E +iMi +O n ,
V n B +x i B +xv, |l oT E{x E
i E |iE x *
(M) B V E Mix E E{x u E
Vi * SE E +x{V +i E v
i V E u xvi xnb E +x{ E{x
u {{i |vx E M *

2.

The nature of business of the Company does not warrant


holding of inventory.

3. a.

The Company has not granted or taken any loans ,


secured or unsecured, to / from companies, firms or
other parties covered in the register maintained under Section 301 of the Companies Act, 1956 .

b.

In cases where the Company has made advances


under Hire Purchase , Leases Agreements or Inter
Corporate Deposit, the rate of interest and other terms
and conditions are, prima facie, not prejudicial to the
interests of the Company.

c.

Payments of the principal amount and interest are


being recovered by the Company. In cases of default,
adequate provisions have been made by the Company, in accordance with norms laid down by the Reserve Bank of India, in the matter of Non Performing
Assets.

d.

In cases where the overdue amount is more than Rupees one lakh, reasonable steps have been taken
by the Company for the recovery of the principal and
interest.

(P) B V +in { BE J +vE


, E{x u vx B V E i Wra; En
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4. il n M< VxE B {]Eh E +x
E{x E +E il <E E { E +x {{i
+iE xjh |h * <E +iH, + E{x
E +J E VS il n M< Sx + {]Eh E
+x x x i +iE xjh c J E vx
Mi x E E< { + x
<E Sx n M< *

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control
system commensurate with the size of the Company and
the nature of its business. Further, on the basis of our examination of the books and the records of the Company
and according to the information and explanations given
to us, we have neither come across nor have been informed
of any continuing failure to correct major weaknesses in
the aforesaid internal control system.

5. n M< Sx + {]Eh E +x E{x x B E<


xnx x E V E{x +vx E v 301 E
+x V] +Ji Ex E +Ei *

5. According to the information and explanations given to


us, the Company has not entered into transactions which
require to be recorded in a register in pursuance of Section 301 of the Companies Act.

6. E {x x E {x +vx 1956 E v 58B,58BB


+l +x M i ={ v + =E + i M i xB MB
x E +iMi + Vxi E< V E x E
*

6. The Company has not accepted any deposit from the public
under Sections 58A , 58AA or any other relevant provision
of the Companies Act,1956 and the rules framed
thereunder.

189

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7. E{x E +E il E |Ei E +x
E{x E { xn JE E J {I
Ex E BE +iE |h *
8. Exp E x E{x +vx, 1956 E v 209(1)(P) E
+iMi E{x E Mi Eb B J Jx i xvi x
E *
9. (E) n M< Sx + {]Eh il u VS
EB MB E{x E +J E +x E{x xv,
+ E, E, ={ E il +x iiE vE
n i +ni vE n E Si |vE
E V Ex E xi *

AllBank Finance Ltd.


7. The Company has an internal audit system by an outside
firm of Chartered Accountants which is in our opinion commensurate with its size and nature of business.
8. The Central Government has not prescribed maintenance
of cost records and accounts under Section 209(1)(d) of
the Companies Act, 1956, to the Company.
9. a.

(J) n M< Sx + {]Eh il u VS


EB MB E{x E +J E +x 31 S 2012 E
lli n vE E E h xxx
V n E Eh V x EB MB*

b.

According to the information and explanations given


to us and the records of the Company examined by
us , in our opinion, the Company is regular in depositing the undisputed statutory dues including provident fund, income tax , service tax , cess and other
material statutory dues as applicable with the appropriate authorities.
According to the information and explanations given
to us and the records of the Company examined by
us, the details of statutory dues as on 31st March,
2012, not deposited on account of dispute, are as
under :

v E x

n E {

E S { n i

Name of the Statue

Nature of the Dues

Forum where the dispute is pending

+E
+vx, 1961

+E
xvh 2003-04

+<.].B.]. EEi S

Income Tax
Act, 1961

Income Tax
A.Y. 2003-04

I.T.A.T. Kolkata Bench

+E
+vx, 1961

+E
xvh 2005-06

+E +H (+{)

Income Tax
Act, 1961

Income Tax
A.Y. 2005-06

Commissioner of Income
Tax ( Appeals )

+E
+vx, 1961

+ E
xvh 2006-07

+E +H (+{)

Income Tax
Act, 1961

Income Tax
A.Y. 2006-07

Commissioner of Income
Tax ( Appeals )

+E
+vx, 1961

+E
xvh 2007-08

+E +H (+{)

Income Tax
Act, 1961

Income Tax
A.Y. 2007-08

Commissioner of Income
Tax ( Appeals )

+E
+vx, 1961

+E
xvh 2008-09

+E +H (+{)

Income Tax
Act, 1961

Income Tax
A.Y. 2008-09

Commissioner of Income
Tax ( Appeals )

+E
+vx, 1961

+E
xvh 2009-10

+E +H (+{)

Income Tax
Act, 1961

Income Tax
A.Y. 2009-10

Commissioner of Income
Tax ( Appeals )

(` J )
Amount ( ` in lacs )

627.62

23.44*

15.32*

55.18*

8.07

142.61

* fUkvle fUtu rl"othK JMo 2005-06, 2006-07 YJk 2007-08 nu;w ytgfUh ytgwwU (yvet) fuU yt=uN t; ntu dY nki> yt=uN CtJe ntulu fUe ;theF

rl"otrh;e yr"fUthe mu yCe t; ntult ni>

* The Company have received order from CIT(A) for A.Y. 2005-06, A.Y. 2006-07 and A.Y. 2007-08. Order effect is yet to be
received from the Assessing Officer.
10. E{x E 31 S 2012 E E< S P] x + = 10. The Company has no accumulated losses as at 31st
March,2012 and it has not incurred any cash losses in
il E {i k B = iiE { E E<
the financial year ended on that date and in the immexEn P] x =X
diately preceding financial year.
11.
According to the records of the Company examined by
11. u E{x E +J E VS il n M< VxE
us
and the information and explanation given to us, the
B {]Eh E +x, k l+, E bS
Company has no dues towards financial institutions ,
vE E { E{x E E< E x *
banks and debenture holders.

190

+E <xx .
AllBank Finance Ltd.

12. B V E Jn B {]] E E +iMi


+O nB MB , E{x x {{i +J B niV E
JJ E *
13. E{x { S]b xv/S w+ x] b/<] {
|V v E |vx E{x E B M x k*

12.

The Company has maintained adequate records and


documents where advances have been made under hire
purchase and leases agreements.

13.

The provisions of any special statue applicable to chit


fund or a nidhi / mutual benefit fund / societies are not
applicable to the Company.

14. E{x , |ii, bS B +x x E bM +l


]bM x Ei * E{x x xM E +b<]M il
Mi +ni < E xn E +iMi BE n
E x{] Ex { +vMi EB + nPv
x E { b + bS +Vi EB * E{x x
B xnx E Si Eb J il E{x +{x x
, ctkz + bS Ji *

14.

The Company is not dealing or trading in shares , securities, debentures and other investments. The Company
has acquired shares on account of underwriting share
issue and also in settlement of a claim under directions
of The Special Court, Mumbai in the previous years and
has also acquired debentures and bonds as long term
investments. The Company has maintained proper
records of such transactions and the shares, debentures
and bonds are held by the Company in its own name.

15. n M< VxE B {]Eh E +x, E{x x E


+x E u E + k l+ M @h E B
E< M] x n * +iB, +n E Jb-4 ( xv) E |vx
E{x { M x *

15.

According to the information and explanations given to


us, the Company has not given any guarantee for loans
taken by others from banks or financial institutions and
therefore the provisions of Clause 4 (xv ) of the Order
are not applicable to the Company.

16.

As per records, the Company has not taken any term


loan during the year covered under audit and therefore
the provisions of Clause 4 (xvi ) of the Order are not
applicable to the Company.

17. n M< Sx + {]Eh E +v { + E{x E


ix {j E O VS Ex { E +{EE
+v { B E< xv x =M M< VE |M
nPEE x i E M *

17.

Based on the information and explanations given to us


and on an overall examination of the balance sheet of
the company, in our opinion, there are no funds raised
on a short term basis which have been used for long
term investment.

18. E{x x E{x +vx 1956, E v 301 E +iMi


+xIi V] {] + E{x E E
nx +vx E +]x x E *

18.

The Company has not made any preferential allotment


of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act,
1956 during the year.

19. E{x x E< bS V x E * inx, +n E


Jb 4(xix) E |vx E{x { M x *

19.

The Company has not issued any debentures . Accordingly, the provisions of Clause 4 (xix) of the Order are
not applicable to the Company.

20. E{x x E nx {E < E VB vx E =M x


E *
21. i xi Ei J{I {{] E +x
u E{x E +J + E VS E nx +
n M< Sx + {]Eh E +x E nx x i
E{x E{x u E |E E vJvc EB Vx E
P]x x +<, x <E VxE , x B E<
{] E M< + x |vx u B E P]x E
Sx n M< *

20.

The company has not raised any money by public issue


during the year.

21.

During the course of our examination of books and


records of the Company, carried out in accordance with
generally accepted auditing practices in India and according to the information and explanations given to us,
we have neither come across any incidence of fraud on
or by the Company, noticed or reported during the year,
nor have we been informed of any such case by the
management.

16. +J E +x, E{x x J{I E +iMi


E < n @h x * +iB, +n E
Jb-4 (xvi) E |vx E{x vh M x *

lx : EEi
nxE : 28.04.2012

c{i b
{]x
ni . 54962
Ei b Bb
xn JE
VUbo vksefUhK mkgt 302175E

Place : Kolkata
Date: 28.04.2012

191

Subrata De
Partner
Membership No. 54962
For & on behalf of
DE & BOSE
Chartered Accountants
Firm Registration No. 302175E

M lank

U c ly B
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|hi E Vi E(E) x 2011-2012 i ke h + xEn h E I E + k VxE +
E +x :
i)

ii)

<x h E< i{h +i Elx x +l E< i{h il U] x +l E< E Elx ]


x *
h E E E i + =Si U |ii Ei il Vn J xE, |V v + xx
E +x *

(J) k VxE + E +x E nx E x E< B xnx x E V E{]{h, +v


+l E E +S i E r *
(M) k {]M i +iE xjh l{i Ex + < xB Jx E =kni E Ei + E
x k {]M vi E E +iE xjh |h E Ex E + B +iE xjh E {J
+ {Sx E =x Mi E, V VxE + <x Mi E {vx i x V En =`B
, = J{IE + J{I i E I |E] E *
(P) x J{IE + J{I i E n E(i)

2011-12 E nx k {]M { +iE xjh E< i{h {ix x ni>

(ii)

E nx J xi E< i{h {ix x + *

(iii)

vJvc E P]xB VxE VxE < + V |vx gt E ES E {ii, n E<


, VE k {]M { E fUe ytk;rhfU xjh |h i{h E *

(su. {. =qqyt)
+vI B |v xnE

(Y. ce. Ctatgo)

|vE (k B J) YJk meYVUytu


lx : EEi
nxE : 05.05.2012

193

CERTIFICATE PURSUANT TO CLAUSE 49V


OF THE LISTING AGREEMENT

To
The Board of Directors
Allahabad Bank
This is to certify that
(a) We have reviewed financial statements and the cash flow statement for the year 2011-2012 and that to the best of our
knowledge and belief:
(i)

these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading.

(ii)

these statements together present a true and fair view of the Banks affairs and are in compliance with existing
accounting standards, applicable laws and regulations.

(b) There are, to the best of our knowledge and belief, no transactions entered into by the Bank during the year which are
fraudulent, illegal or violative of the Banks code of conduct.
(c)

We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of the internal control systems of the Bank pertaining to the financial reporting and we
have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal
controls of which we are aware and the steps we have taken to rectify the deficiencies.

(d) We have indicated to the auditors and the Audit Committee


(i)

that no significant changes in internal control over financial reporting has been made during the year 2011-12,

(ii)

that no significant changes in accounting policies has taken place during the year,

(iii) the instances of significant fraud of which we become aware and the involvement therein, if any, of the management or an employee having a significant role in the Banks internal control system over financial reporting.

( J. P. Dua)
Chairman & Managing Director

(A. B. Bhattacharjee)
General Manager ( F & A) & CFO

Place: Kolkata
Date: 05.05.2012

194

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(iE vE i)
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Ji V Ex i <n E E |vEi Ei /:
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J. J E x (E B J)
{i(E +vn i)

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E + J E 9 +E E E]

______________________________

P.

Ji E |E (Si/S)

______________________________

b.

SEE =Ji Ji J

______________________________

S.

vE E B]b Eb + ]x J :

______________________________

Binu Ph Ei E >{ nB MB h + {h * n Mi + +v Sx nx E Eh xnx


i +l xnx x {i i <n E E =kn x `=M*

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77/2B, V b
EEi-700 029

vE E iI

Eb J E ]Ei E i{x i E{ +{x =H Ji vi SE {z E ]|i +l xi E M E SE


Mx E*
n +{ b] vh E i E{ +{x <B b] vi b{V] {]{] E =E u
xvi ] V*
x] : <B E v V Ex i E J B E ii x SB*

195

FORM FOR ECS MANDATE/BANK ACCOUNT PARTICULARS


(FOR PHYSICIAL HOLDERS)

I/We---------------------------------------------------------------- do hereby authorize Allahabad Bank to credit my dividend amount directly to my bank account by ECS.
My/Our Folio No. ALB
No. of Shares
Particulars of Bank Account
A. Bank Name

B. Branch Name(only CBS Branch)

Address ( for mandate only)

C. 9 Digit Code No. of the Bank & Branch


Appearing on the MICR Cheque
D. Account Type ( Saving/Current)

E. Account No. as appearing in the Cheque Book

F. STD Code & Telephone No. of shareholder

I hereby declare that the particulars given above are correct and complete. If the transaction is delaye d or not effected at all for
reasons of incomplete or incorrect information, I would not hold Allahabad Bank responsible.
Mail to

M/S MCS Limited


Unit: Allahabad Bank
77/2A, Hazra Road
Kolkata-700 029
Signature of the shareholder

Please attach a photocopy of a Cheque Leaf or a blank cancelled cheque issued by your bank relating to your above account
for verifying the accuracy of the code numbers.
In case you are holding shares in demat form, kindly send the ECS Mandate to the concerned Depository Participant
directly, in the format prescribed by the DP.
Note: For credit of dividend through NECS the Bank Branch should be under CBS.

196

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

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(` E l | E |ii E Vx )
nx B iJ: M,14 Vx, 2012
: {x 10.30 V
lx : EEi
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={li vE/|C/|ixv E iI
{VEi J/ b{ +<b B C<] +<b
vE E x
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E{ Mx E {] E +{x |i l E +B*
197

ALLAHABAD BANK
HEAD OFFICE: 2, Netaji Subhas Road Kolkata- 700 001
ATTENDANCE SLIP
(To be surrendered at the time of Entry to the venue)
Day & Date: Thursday, the 14th June, 2012
Time : 10.30 A.M.
Place: KOLKATA
I hereby record my presence at the Tenth Annual General Meeting of the shareholders of the Allahabad
Bank:-

Signature of the Shareholder/Proxy/Representative Present


Regd. Folio No. /DP ID & Client ID
Name of the Shareholder
Number of Shares

Shareholder(s)/proxy/authorized representative of shareholder(s) are requested to produce the above attendance slip, duly signed, (same as their specimen signatures registered with the Bank), along with the
entry pass, for admission to the venue. The admission will, however, be subject to verifications, as may be
deemed necessary. Under no circumstances, any duplicate attendance slip will be issued at the entrance of
the venue of the meeting.

&

&
ALLAHABAD BANK
Entry Pass
(To be retained throughout the meeting)

Signature of the Shareholder/Proxy/Representative Present


Regd. Folio No./ DP ID & Client ID
Name of the Shareholder
Number of Shares

Note : No gifts/gift coupons will be distributed at the meeting.


Please bring your copy of Annual Report.

198

<n E

|vx E : 2, xiV b
EEi : 700 001
''
{I (|C) i
(vE n u B iI E Vx )

V]b x. b{ +<b B C<] +<b .......................................


/ .................................................................................................................. V E ....................... V li
........................... E/E x <n E E/E vE x E xi Binu ........................ V E ...........................
V li .................................. E/E x /i ..................................................... E +l =E +x{li
....................................... V E ............................... V li .............................. E/E x /i ..................................
E M 14.06.2012 E {x 10.30 V { +b] <]x Wx ES x], i ES ]{C, +<-201,
C] III ] E ], EEi - 700 106 {z x <n `E E vE E E + + =E E
lMx E ={xi +Vi / + inx Ex E +{x {I xH Ei /Ei *
< {...........................2012 E........................nx iI E*

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E n
]E] S{EB
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x : ...................................................................
{i : ...................................................................
..........................................................................
..........................................................................

........................................
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3.

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vi *
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10. E< {I Ji i iE v x M V iE - '" { x *
199

Form B
Form of Proxy
( To be filled in and signed by the shareholder member)

Regd. Folio No./DPID & Client ID ................................................................................................

I/We resident of in
the district of in the state of
being a share holder(s) of Allahabad Bank,, hereby appoint Shri/Smt.
resident of in the district of
- or failing him/her. Shri/Smt
resident of in the district of in the state of
as my /our proxy to vote for me/us and on my/our behalf at the Tenth Annual General
Meeting of the Shareholders of the Allahabad Bank to be held on Thursday, the 14th June 2012 at 10.30 a.m. at Purbashree
Auditorium, Eastern Zonal Cultural Center, Bharatiyam Cultural Multiplex, IB-201, Sector-III, Salt Lake City, Kolkata-700106,
and at any adjournment thereof.
Signed this day of 2012
Please affix
One Rupee
Revenue
Stamp

Signature of the Proxy

Signature of the First/Sole Holder


Name ........................................
Address ......................................
......................................
......................................
Instructions for signing and lodging the Proxy form:
1.

The instrument of proxy to be valid


(a)
in case of an individual shareholder, shall be signed by him/her or his/her attorney duly authorized in writing.
(b)
In case a joint holder, shall be signed by the shareholder whose names appear first in the Register of Members or by his/
her attorney duly authorized in writing.
(c)
In case of body corporate, shall be signed by its officer duly authorised in this behalf and executed under its common
seal, if any or otherwise signed by its attorney duly authorized in writing.

2.

An instrument of proxy in which the thumb impression of the shareholder is affixed, will be valid provided it is attested by a Judge,
Magistrate, Registrar or Sub-Registrar of Assurances or any other Government Gazetted Officer or an Officer of Allahabad Bank.
3. The Proxy together with
(a) the power of attorney or other authority ( if any) under which it is signed or
(b) a copy of that power of Attorney or Authority , certified by a Notary Public or a Magistrate, should be deposited at the Share
Department, Head Office of Allahabad Bank, not later than FOUR DAYS before the date of Tenth Annual General Meeting,
i.e. upto 2.00 p.m. on Saturday, the 9th June, 2012.
4. In case of relevant power of attorney is already registered with Allahabad Bank or its Share Transfer Agent , the registration number
of power of attorney and date of such registration may be mentioned.
5. No proxy shall be valid unless it is duly stamped and signed.
6. An instrument of proxy deposited with the Bank shall be irrevocable and final.
7. In case of an instrument of proxy granted in favour of two grantees in the alternative, not more than one form shall be executed.
8. The shareholder who has executed an instrument of proxy shall not be entitled to vote in person at the Annual General Meeting
to which such instrument relates.
9. No person shall be appointed as duly authorized representative or a proxy who is an officer or an employee of Allahabad Bank.
10. No instrument of proxy shall be valid unless it is in Form B.

200

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&
&

ALLAHABAD BANK
H.O: 2, Netaji Subhas Road, Kolkata-700 001

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