Private & Confidential Not for Circulation (This is a Disclosure Document prepared in conformity with Securities and Exchange

e Board of India (Issue and Listing of Debt Securities) Regulations, 2008 issued vide circular no. LAD-NRO/GN/2008/13/127878 dated June 06, 2008)

ALLAHABAD BANK
(A Government of India Undertaking) Head Office: 2, Netaji Subhas Road, Kolkata 700 001 Tel.: (033) 22420899, 22420878, 22420375; Fax.: (033) 22107424 Website: www.allahabadbank.in E-Mail: investors.grievance@.allahabadbank.in

DISCLOSURE DOCUMENT FOR PRIVATE PLACEMENT OF UNSECURED REDEEMABLE NONCONVERTIBLE SUBORDINATED LOWER TIER-II BONDS (SERIES-IX) IN THE NATURE OF PROMISSORY NOTES OF RS. 10 LAKH EACH FOR CASH AT PAR AGGREGATING RS. 450 CRORES

TRUSTEE FOR THE BONDHOLDERS

IDBI Trusteeship Services Ltd. Registered Office Asian Building, Ground Floor 17, R Karmani Marg, Ballard Estate Mumbai - 400 001 Tel: (022) 40807000 Fax: 91-22-66311776/ 22625247 E-mail: itsl@idbitrustee.co.in

REGISTRAR TO THE ISSUE

Maheshwari Datamatics Pvt. Ltd. R.O 6, Mangoe Lane (Surendra Mohan Ghosh Sarani) 2nd Floor, Kolkata-700 001 Tel: (033) 2243-5809/5029 Fax: 91-33-22484787 E-mail: mdpl@cal.vsnl.net.in Website: www.mdpl.in

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TABLE OF CONTENTS
INDEX I. II. III. IV. V. TITLE DEFINITIONS/ ABBREVIATIONS DISCLAIMER NAME AND ADDRESS OF HEAD OFFICE OF THE ISSUER NAMES AND ADDRESSES OF THE DIRECTORS OF THE ISSUER BRIEF SUMMARY OF BUSINESS/ ACTIVITIES OF ISSUER AND ITS LINE OF BUSINESS BRIEF HISTORY OF ISSUER SINCE INCEPTION, DETAILS OF ACTIVITIES INCLUDING ANY REORGANIZATION, RECONSTRUCTION OR AMALGAMATION, CHANGES IN CAPITAL STRUCTURE, (AUTHORIZED, ISSUED AND SUBSCRIBED) AND BORROWINGS SUMMARY TERM SHEET TERMS OF OFFER (DETAILS OF DEBT SECURITIES PROPOSED TO BE ISSUED, MODE OF ISSUANCE, ISSUE SIZE, UTILIZATION OF ISSUE PROCEEDS, STOCK EXCHANGES WHERE SECURITIES ARE PROPOSED TO BE LISTED, REDEMPTION AMOUNT, PERIOD OF MATURITY, YIELD ON REDEMPTION, DISCOUNT AT WHICH OFFER IS MADE AND EFFECTIVE YIELD FOR INVESTOR) CREDIT RATING & RATIONALE THEREOF NAME OF DEBENTURE TRUSTEE STOCK EXCHANGE WHERE SECURITIES ARE PROPOSED TO BE LISTED DETAILS OF OTHER BORROWINGS (DETAILS DEBT SECURITIES ISSUED IN THE PAST, PARTICULARS OF DEBT SECURITIES ISSUED FOR CONSIDERATION OTHER THAN CASH OR AT A PREMIUM OR DISCOUNT OR IN PURSUANCE OF AN OPTION, HIGHEST TEN HOLDERS OF EACH CLASS OR KIND OF SECURITIES, DEBT EQUITY RATIO) SERVICING BEHAVIOR ON EXISTING DEBT SECURITIES AND OTHER BORROWINGS UNDERTAKING REGARDING COMMON FORM OF TRANSFER MATERIAL EVENT, DEVELOPMENT OR CHANGE AT THE TIME OF ISSUE PERMISSION / CONSENT FROM PRIOR CREDITORS MATERIAL CONTRACTS & AGREEMENTS INVOLVING FINANCIAL OBLIGATIONS OF THE ISSUER DECLARATION ANNEXURES CREDIT RATING LETTER FROM CARE CREDIT RATING RATIONALE FROM CRISIL CONSENT LETTER FROM IDBI TRUSTEESHIP SERVICES LTD.

VI

VII.

VIII.

IX. X. XI.

XII.

XIII. XIV. XV. XVI. XVII. XVIII. XIX. A. B. C.

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I.

DEFINITIONS/ ABBREVIATIONS
Asset Liability Management Automated Teller Machine The Board of Directors of Allahabad Bank or Committee thereof Unsecured Redeemable Non-Convertible Subordinated Lower Tier-II Bonds (Series-IX) in the nature of Promissory Notes of Rs. 10,00,000/- each offered through private placement route under the terms of this Disclosure Document The date of closure of register of Bonds for payment of interest and repayment of principal Capital Adequacy Ratio Credit Analysis & Research Ltd. CRISIL Ltd. Fitch Ratings India (P) Ltd. Compounded Annual Growth Rate Central Depository Services (India) Ltd. Corporate Debt Restructuring Cash Reserve Ratio Non-Convertible debt securities which create or acknowledge indebtedness and include debenture, bonds and such other securities of the Issuer, whether constituting a charge on the assets of the Issuer or not, but excludes security receipts and securitized debt instruments A Depository registered with SEBI under the SEBI (Depositories and Participant) Regulations, 1996, as amended from time to time The Depositories Act, 1996, as amended from time to time A Depository participant as defined under Depositories Act Deposit Insurance and Credit Guarantee Corporation of India Director(s) of Allahabad Bank unless otherwise mentioned Depository Participant Export Credit Guarantee Corporation of India Earning Per Share Foreign Direct Investment Foreign Exchange Dealers Association of India Financial Institutions Foreign Institutional Investors Period of twelve months period ending March 31, of that particular year Government of India/ Central Government Hindu Undivided Family IDBI Trusteeship Services Ltd. Allahabad Bank Disclosure Document dated July 24, 2009 for Private Placement of Unsecured Redeemable Non-Convertible Subordinated Lower Tier-II Bonds (Series IX) in the nature of Promissory Notes of Rs. 10,00,000/- each for cash at par aggregating to Rs. 450 crores to be issued by Allahabad Bank The Income Tax Act, 1961, as amended from time to time Ministry of Finance Non Performing Assets Non Resident Indians National Stock Exchange of India Ltd. National Securities Depository Ltd. Overseas Corporate Bodies Permanent Account Number Prime Lending Rate/ Bench Mark Prime Lending Rate Indian National Rupee Reserve Bank of India Real Time Gross Settlement Registrar to the Issue, in this case being Maheshwari Datamatics Pvt. Ltd. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 The Securities and Exchange Board of India, constituted under the SEBI Act, 1992 Securities and Exchange Board of India Act, 1992, as amended from time to time Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 issued vide Circular No. LAD-NRO/GN/2008/13/127878 dated June 06, 2008 Statutory Liquidity Ratio Tax Deducted at Source Allahabad Bank, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 The Companies Act, 1956 as amended from time to time Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 Private Placement of Unsecured Redeemable Non-Convertible Subordinated Lower Tier-II Bonds (Series IX) in the nature of Promissory Notes of Rs. 10,00,000/- each for cash at par aggregating Rs. 450 crores to be issued by Allahabad Bank

ALM ATM Board/ Board of Directors Bonds

Book Closure/ Record Date CAR CARE CRISIL FITCH CAGR CDSL CDR CRR Debt Securities

Depository Depositories Act Depository Participant DICGC Director(s) DP ECGC EPS FDI FEDAI FIs FIIs Financial Year/ FY GoI HUF Trustee Issuer Disclosure Document

I.T. Act MoF NPAs NRIs NSE NSDL OCBs PAN PLR/BPLR Rs. RBI RTGS Registrar SARFAESI Act SEBI SEBI Act SEBI Regulations SLR TDS The Bank/ the Issuer The Companies Act The Act The Issue/ The Offer/ Private Placement

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II.

DISCLAIMER

GENERAL DISCLAIMER This Disclosure Document is neither a Prospectus nor a Statement in Lieu of Prospectus and is prepared in accordance with Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 issued vide Circular No. LAD-NRO/GN/2008/13/127878 dated June 06, 2008. This document does not constitute an offer to the public generally to subscribe for or otherwise acquire the Bonds to be issued by Allahabad Bank (the Issuer/ the Bank/ the Issuer Bank). The document is for the exclusive use of the Institutions to whom it is delivered and it should not be circulated or distributed to third party(ies). The Bank certifies that the disclosures made in this document are generally adequate and are in conformity with the captioned SEBI Regulations. This requirement is to facilitate investors to take an informed decision for making investment in the proposed Issue. DISCLAIMER OF THE SECURITIES & EXCHANGE BOARD OF INDIA This Disclosure Document has not been filed with Securities & Exchange Board of India (SEBI). The Securities have not been recommended or approved by SEBI nor does SEBI guarantee the accuracy or adequacy of this document. It is to be distinctly understood that this document should not, in any way, be deemed or construed that the same has been cleared or vetted by SEBI. SEBI does not take any responsibility either for the financial soundness of any scheme or the project for which the Issue is proposed to be made, or for the correctness of the statements made or opinions expressed in this document. The issue of Bonds being made on private placement basis, filing of this document is not required with SEBI, however SEBI reserves the right to take up at any point of time, with the Bank, any irregularities or lapses in this document. DISCLAIMER OF THE ARRANGER It is advised that the Bank has exercised self due-diligence to ensure complete compliance of prescribed disclosure norms in this Disclosure Document. The role of the Arranger in the assignment is confined to marketing and placement of the bonds on the basis of this Disclosure Document as prepared by the Bank. The Arranger has neither scrutinized/ vetted nor has it done any due-diligence for verification of the contents of this Disclosure Document. The Arranger shall use this document for the purpose of soliciting subscription from qualified institutional investors in the bonds to be issued by the Company on private placement basis It is to be distinctly understood that the aforesaid use of this document by the Arranger should not in any way be deemed or construed that the document has been prepared, cleared, approved or vetted by the Arranger; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this document; nor does it take responsibility for the financial or other soundness of this Issuer, its promoters, its management or any scheme or project of the Bank. The Arranger or any of its directors, employees, affiliates or representatives does not accept any responsibility and/or liability for any loss or damage arising of whatever nature and extent in connection with the use of any of the information contained in this document. DISCLAIMER OF THE ISSUER The Issuer confirms that the information contained in this Disclosure Document is true and correct in all material respects and is not misleading in any material respect. All information considered adequate and relevant about the Issue and the Bank has made available in this Disclosure Document for the use and perusal of the potential investors and no selective or additional information would be available for a section of investors in any manner whatsoever. The Bank accepts no responsibility for statements made otherwise than in this Disclosure Document or any other material issued by or at the instance of the Issuer Bank and anyone placing reliance on any other source of information would be doing so at his/her/their own risk. DISCLAIMER OF THE STOCK EXCHANGE As required, a copy of this Disclosure Document has been submitted to the National Stock Exchange of India Ltd. (hereinafter referred to as NSE) for hosting the same on its website. It is to be distinctly understood that such submission of the document with NSE or hosting the same on its website should not in any way be deemed or construed that the document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this document; nor does it warrant that this Issuers securities will be listed or continue to be listed on the Exchange; nor does it take responsibility for the financial or other soundness of the Issuer, its promoters, its management or any scheme or project of the Bank. Every person who desires to apply for or otherwise acquire any securities of this Issuer may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription/ acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.

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III.

NAME AND ADDRESS OF REGISTERED/ HEAD OFFICE OF THE ISSUER : : : : : : Allahabad Bank 2, Netaji Subhas Road, Kolkata 700 001 (033) 22420899, 22420878, 22420375 (033) 22107424 www.allahabadbank.in investors.grievance@allahabadbank.in

Name of the Issuer Head Office Telephone Number Fax Number Website E-mail

IV.

NAMES AND ADDRESSES OF THE DIRECTORS OF THE ISSUER

The composition of the Board of Directors of the Bank as date of this Disclosure Document is as under: Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Name of Director Mr. K. R. Kamath Mr. K. K. Agarwal Mr. J. P. Dua Mrs. Sukriti Likhi Mr. Mohammad Tahir Mr. K. K Dogra Mr. V. Gurumurthy Mr. Ashok Jain Mrs. Joginder Kaur Mr. P. V Gudireddy Dr. Shakeel Uz-Zaman Ansari Mr. Deveshwer Kumar Kapila Dr. Vasant Baburao Kaujalgi Designation Chairman & Managing Director Executive Director Executive Director Government Nominee Director RBI Nominee Director Officers Nominee Director Workman Nominee Director Part Time Non Official Government Nominee Director Part Time Non Official Government Nominee Director Part Time Non Official Government Nominee Director Part Time Non Official Government Nominee Director Shareholders Director Shareholders Director Background/ Profile/ Address Allahabad Bank Head Office, 2, Netaji Subhas Road, Kolkata - 700 001. Allahabad Bank Head Office, 2, Netaji Subhas Road, Kolkata - 700 001. Allahabad Bank Head Office, 2, Netaji Subhas Road, Kolkata - 700 001. B-61, Nivedita Kunj, R K Puram, Sector 10, New Delhi- 110022 F-701, Marigold CHS Valley of Flowers, Thakur Village, Kandivli (E), Mumbai-400101 155, Old Ashoka Garden, Raisen Road, Bhopal-462023 No. 18 (New No. 35), Apparswamy Koil Street, Mylapore, Chennai-600004 118, Jaipur House, Agra, U.P-282010 560, Sector-36-B, Chandigarh Vill- Pathapalli, Post- Kallur, Taluk- Srinavaspur, District- Kolar, Karnataka. J-36, Abdul Fazal Enclave, Jamia Nagar, Okhla, New Delhi-110025 940, Sector 17B, Gurgaon, Harayana, PIN-122007 N-220, Ushas Apts, 16 Main, 4 Block, Jayanagar, Bangalore-560011

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V.

BRIEF SUMMARY OF BUSINESS/ ACTIVITIES OF ISSUER AND ITS LINE OF BUSINESS

HIGHLIGHTS OF THE BANK 1. Public sector Bank with major stake with Government of India. 2. Bank with more than 144 years of existence. 3. Professionally managed Bank with a track record of profitability. 4. Large network of branches spread throughout the country. As on Mar 31, 2009 the branch network of the Bank includes 2259 domestic branches, one foreign branch at Hong Kong and one Rep. Office in China apart from 69 extension counters. 5. Specialized branches to cater the need of industrial finance, trade finance, personal banking, international banking, NRIs and small-scale industries. 6. Capital Adequacy Ratio of 13.11% as on March 31, 2009, which is well above the stipulated minimum of 9% prescribed by RBI. 7. Product portfolio includes Trade finance, Consumer Loans, Loan through Internet, Demat Services, Kisan Cards etc. 8. Net NPA to Net Advance Ratio decreased to 0.72% as on March 31, 2009 as compared to 0.80% as on March 31, 2008. 9. Diversified loan portfolio spread over many industries with exposure not more than 15% to any single non-food industry. 10. Modern training facilities for imparting specialised and modern training to its employees through various staff training colleges/ centers located at Lucknow, Kolkata, Panchkula, Bhubaneswar and Hyderabad. 11. Total Business of the Bank stood at Rs. 144415 crores as on 31-03-2009. 12. Deposits have grown by 18.65% during FY 2009. 13. Gross Advances have grown by 18.15% during FY 2009. 14. Consistent growth in clientele base. 15. Launching of innovative banking products on regular basis to meet the customers needs. 16. Paid dividend @ 25% for the year 2008-09. 17. Earning Per Share for the year ended March 31, 2009 was Rs. 17.21. BACKGROUND OF THE BANK Allahabad Bank, the oldest joint Stock Bank of the country, was set up in the historic town of Allahabad on April 24, 1865 by a Group of Europeans. At that juncture, organised industry, trade and banking had just started taking shape in India. The Bank started with a subscribed capital of Rs. 2 lacs and by the end of 19th century, it grew with branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Kolkata and Delhi. In the early 20th century, with the start of Swadeshi Movement, Allahabad Bank witnessed a spurt in deposits and the reserves increased to over Rs. 30 lacs by 1910. In 1920, the Bank was taken over by P&O Banking Corporation at a bid price of Rs. 436 per share. The Head Office and the Registered Office of the Bank were then shifted to Kolkata in 1923 for business considerations and operational convenience. In 1927, the Bank went into the fold of Chartered Bank that acquired the controlling interest in the P&O Banking Corporation. The Bank passed through the critical period of Great Depression during the early thirties, which caused a general stagnation in the global markets without sparing the Indian Banking Industry. The Bank dovetailed its functioning in accordance with the exigencies of the Five Year Plans, which were started in 1951. In the post independence era, Allahabad Bank maintained a steady growth and the Bank opened its 100th branch by 1964. On July 19, 1969, along with 13 other major commercial banks, Allahabad Bank was nationalised. At the time of nationalisation, the Bank had a network of 151 branches, deposits of Rs. 114 crores and advances of Rs. 82 crores to its credit. With nationalisation, the Bank spread its activities in the rural, unbanked and under-banked areas. In order to bolster the rural economy, a plethora of Social Banking Schemes was introduced. Thus, Lead Bank Scheme (1969), Regional Rural Banks (1975), Twenty-point Programme (1975), New 20-point Programme (1981), Integrated Rural Development Programme (1980) etc. were introduced in the Indian Banking industry. Directed lending to priority sectors, weaker sections, Scheduled Castes/ Scheduled Tribes and Other Backward Castes were given a greater thrust and the Bank responded to this initiative and increased its presence in these areas also. In October 1989, United Industrial Bank Limited was amalgamated into Allahabad Bank. As on 31 Mar 2009 the Branch network of the Bank increased to 2260 with 968 rural Branches, 406 semi urban Branches, 464 urban Branches, 421Metropolitan and one foreign Branch. As on March 31, 2009 the Banks priority sector credit stood at Rs. 20435 crores, forming 41.10% of adjusted net bank credit and the agriculture credit was over Rs. 9568 crores constituting 19.20% of adjusted net bank credit. The Bank also opened specialized branches such as Industrial Finance Branches, International Branches, SSI Finance Branches, and Recovery Branches etc. The Bank made a foray into merchant banking activity in 1984 and subsequently transferred the merchant banking activities to AllBank Finance Limited, a wholly owned subsidiary, in 1991.

Disclosure Document

One of the major challenges faced by the Bank was the accumulated losses incurred by it for three consecutive years, i.e. from 1992-93 to 1994-95, owing to the adoption of prudential accounting norms, in line with RBI directives. To overcome this situation and to strengthen the bank in various functional areas, a major revamping exercise was initiated. The Bank put a greater thrust on areas like technological up-gradation & modernization, improvement in customer service, credit management with focus to reduce non-performing assets etc. The Bank staged a turnaround in 1995-96 with a net profit of Rs. 5.62 crore, which increased to Rs. 768.60 crore in 2008-09. BUSINESS PROFILE The aggregate deposits of the Bank as on March 31, 2009 were at Rs. 84971.79 crore and total advances stood at Rs. 59443.40 crores. PRODUCTS AND SERVICES Other than the offering traditional banking products such as corporate loans, the Bank has made its presence by introducing certain new products and value added services while continuing to popularize the existing products. The Bank has launched All Bank Reverse Mortgage Scheme during 2007-08. The Bank has taken initiative to promote Retail Banking, some of the products are: (a) Retail Banking Boutiques In the year 2000, Allahabad Bank came out with a unique strategy for marketing its retail loans by putting in place dedicated Retail Banking Boutiques at potential centers across the country to act as exclusive delivery channels of various Retail Finance Schemes. The Bank posted young & dynamic officers in these boutiques and delegated them with adequate authority to sanction loan proposals related to the various schemes on the spot. These officers were also exposed to specialized training not only to serve the customer better but also to sell the retail products, if need be, by adopting door to door campaign. Total number of Boutiques was 126 with an outstanding of Rs. 2468.46 crores as on March 31, 2009. During the year ended March 31, 2009, the total disbursement under the various retail finance schemes was Rs. 1795.60 crores and outstanding was Rs. 8406.48 crores. Brief description of the Banks retail schemes is as under Sl. Scheme Details No. 1 Allahabad Bank Saral Loan Loan for purchase of entire range of consumer durable/ household Scheme appliances, purchase of two wheeler/ personal computer/ any other tangible items, expenses in connection with any social/ religious obligations, any other purpose except for speculative purpose 2 Allahabad Bank Personal Loan for meeting personal needs without assigning any specific Loan Scheme for Pensioners purpose 3 Allahabad Bank Personal Loan for any personal purpose including purpose for meeting Loan Scheme for Doctors/ expenses of professional requirement Medical Practitioners 4 Allahabad Bank Housing Loan for construction of residential house on land already owned/ to Finance Scheme be purchased, for purchase of house/ flat, for renovation / extension of house/ flat, for purchase of land and construction of house thereon, for taking over of housing loans from other housing finance companies/ financial institutions 5 Allahabad Bank Housing Loan for furnishing and/ or repairing of existing / new flats/ houses Finance Scheme for Furnishing and / or Repairing of existing/ new flats/ houses 6 All Bank Rent Scheme Loans against rent receivables for meeting business needs but not for speculative purposes 7 Allahabad Bank Car Finance For purchase of new as well as pre owned multi utility vehicle for Scheme personal use 8 Allahabad Bank Loan against Loan against NSC/ KVP for any business/ personal purpose other NSC/ KVP than speculative ones 9 Overdraft Facility in Savings To meet immediate exigencies of salaried persons Bank A/Cs 10 Allahabad Bank Educational To provide financial assistance on reasonable terms to the poor and Loan Scheme needy to undertake basic education to meritorious students to pursue higher/ professional / technical education 11 AllBank Gyan Dipika Scheme To provide Educational Loan to Parents/Guardians of students pursuing school education from Nursery standard to 12th Standard 12 AllBank Property Scheme Loan for meeting credit needs of business by offering building as security in the form of equitable mortgage 13 AllBank Mobike Schemes Loan for purchasing two wheelers by salaried persons, professionals and self employed persons, businessman and agriculturalist 7

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14 15 16

AllBank Abhushan Scheme AllBank Gold Loan Scheme AllBank Trade Scheme

Loan is given to working and non-working woman for purchase of gold and diamond jewellary. Loan for any purpose for meeting credit needs by offering Gold ornaments as security. I) Financing of Stock & other assets including book debts to be used in trade ii) Development of shop /showroom / Acquiring block / fixed assets like air conditioners, delivery vans etc. (ii) Purchase of shop/showroom up to 50% of the value of the shop as per Registered sale deed or market value as assessed by Bank & valuer whichever is less (to be secured by mortgage of registered sale deed). Loan for Senior Citizens to supplement their existing income for meeting day-to-day expenses against security of property. Loan for applying for Allotment of Residential Plot/ Flat/ House etc. with Govt. bodies.

17 18

19

AllBank Reverse Mortgage Scheme Short term loans for financing of Application Money raised by local Housing Boards & Development Authorities for Allotment of Residential Plot/ Flat/ House Personal Loan for LIC Officers, Employees & Agents

Loan for meeting personal needs without assigning any specific purpose of LIC Officers, Employees & Agents

(b) Loans on Internet The educational loan facility granted by the Bank was launched in 1997 and was subsequently made possible via Internet during 1999. Facility to apply for educational loan on Internet for education loan is available to the students of leading 250 institutions like IIMs, IITs, Indian Institute of Science Bangalore, Jamunalal Bajaj Institute of Management Mumbai, XLRI Jamshedpur & Indian School of Mines Dhanbad and Bank has so far sanctioned 1770 educational loans amounting to more than Rs. 58.27 crores through Internet. Kisan Credit Card The card aims to provide adequate and timely financial assistance to the farmers for their agricultural activities amongst other requirements. During the year 2008-09 the Bank issued 1.91 lacs cards. The cumulative KCC numbered 12.76 lacs with credit line of Rs. 5266.01 crore as on March 31, 2009. The Bank is also providing Group/Personal Accident insurance cover to the holders of the Kisan Credit Card. The Bank also launched Kisan Shakti Yojana (KSY) in April 24, 2004. The scheme allowed the farmers to have flexibility and choice in regards to selection of credit for agriculture, allied activities and domestic and personnel purpose. (c) Depository Services The Bank has had the distinction of being the first nationalized Bank in the eastern region to be a Depository Participant of NSDL at Kolkata to offer Demat and other related services to its customers in 1998. The Bank had further spread its DP services to its customers by opening DPs at Lucknow, Kanpur and Varanasi under agreement with CDSL. The Bank also opened Branch DPs under NSDL at Mumbai in the year 2004 and New Delhi in the year 2007 with main DP at Kolkata Main Branch. The Bank booked an income of Rs. 75 lacs from 16000 accounts during financial year 2008-09. (d) Flexi- Fix Deposit Scheme This scheme was launched to provide liquidity of a savings bank account and higher yield of a fixed deposit. (e) Banc-assurance The Bank has entered into tie up arrangement with Life Insurance Corporation of India (herein after LICI) for Life Insurance business and with Universal Sompo General Insurance Company Ltd and ECGC for Non-life Insurance and Export Credit Insurance business for selling of their products through its network of branches. The Bank is also providing life insurance cover to the extent of Rs. 1.00 lac to its depositors in association with LICI on payment of a very nominal premium. The Bank also has tie up arrangements with LICI & Tata AIG for providing life insurance coverage under group scheme to its Housing Loan Borrowers. The Bank is having tie-up with Universal Sompo General Insurance Company for providing Free Group Personal Accidental Coverage of Rs. 1.00 lac to SB Account holders maintaining an average monthly balance of Rs. 5000/- as well as to all its ATM cardholders. The Bank has shifted its Corporate Arrangement for non-life insurance business from National Insurance Company Ltd. to Universal Sompo General Insurance Company, a joint venture of the Bank. The Bank also has a tie-up arrangement with LICI for providing group life insurance coverage to its educational loan borrowers. The Bank has earned an income of Rs11.78 Crores from Bancassurance business during FY 2008-09.

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The Bank has entered into tie up arrangement with UTI-AMC, Principal-Pnb AMC, Kotak- Mahindra AMC, Reliance Capital Asset Management Ltd. and Franklin Templeton Asset Management (India) Pvt. Ltd. for selling of their Mutual Fund Products through our branches. This has generated an income of Rs. 0.78 Crores during FY 2008-09. (f) Other Services The Bank has also been providing Cash Management services through its QCS Branches/Centers at Kolkata, New Delhi, Mumbai, Lucknow and Chennai besides 16 Local Cheque Collection (LCC) Hubs at potential centers pan India. Under CMS activities, the Bank is providing Local Cheque Collection Service, Collect and Pay service, Assured Credit up to day 7 to various private and other banks as well as to corporate clients. The Bank has earned an income of Rs.3.86 Crores during FY 2008-09. For expansion of CMS business, the Bank has introduced many new payment products viz. DD issue, DD Drawing, Direct Credit/Debit facility in CBS Branches. BRANCH NETWORK OF THE BANK The Bank has 44 zonal offices, controlling 2260 branches and 69 extension counters as on March 31, 2009, including 74 specialized branches. The population group wise break up of branches of the Bank in India is as under: Population Group Number of Branches Rural 968 Semi-Urban 406 Urban 464 Metropolitan 421 Foreign Branch 1 Total 2260 Geographical distribution of the branches of the Bank is as under: State/ Union Territory Number of Branches Andaman & Nicobar Island 1 Andhra Pradesh Assam Bihar Chandigarh (U.T.) Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Nagaland Orissa Pondicherry (U.T.) Punjab Rajasthan Sikim Tamil Nadu Tripura Uttar Pradesh Uttaranchal West Bengal Hong Kong TOTAL 37 63 167 4 29 54 3 39 37 7 4 102 25 9 156 90 1 1 4 68 1 60 59 1 45 1 696 25 470 1 2260

% Share to Total 42.84 17.96 20.53 18.63 0.04 100.00

% Share of Total 0.04 1.64 2.79 7.39 0.18 1.28 2.39 0.13 1.73 1.64 0.31 0.18 4.51 1.11 0.40 6.90 3.98 0.04 0.04 0.18 3.01 0.04 2.65 2.61 0.04 1.99 0.04 30.80 1.11 20.81 0.04 100.00

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For customers satisfaction and to increase the business, the Bank has given thrust to single window service by opening the specialized branches. The Bank has 74 specialized branches as on March 31, 2009 and they are engaged in financing its corporate borrowers, small-scale industries, specialized trading etc. The details are as given below: Specialized Branches Industrial Finance International Recovery SME Finance Branches Industrial Finance cum International Non-Resident Indians Specialized Personal Banking Specialized Savings Bank Branch Specialized Commercial Agricultural Quick Collection Service Trading Finance Forex cum Treasury Management Agriculture Finance Regional Processing Centre (Forex) Agriculture Development Branch Service Branches Cash Management Services Total DEPOSITS As on Number of Branches 6 5 6 18 1 1 2 1 1 2 2 1 4 3 1 19 1 74

(Rs. in crores) March 31, March 31, March 31, March 31, March 31, 2005 2006 2007 2008 2009 Deposits 40762 48500 59544 71616 84971 Annual Growth Amount 9285 7738 11044 12072 13355 Annual Growth Percent 29.50 18.98 22.69 20.27 18.65 Cost of Deposits (%) 5.00 4.97 5.67 6.67 6.62 Total deposits of the Bank as on March 31, 2009, stood at Rs. 84971crores. The same was Rs. 71616 crores on March 31, 2008 and thus in 2008-09 the growth was Rs. 13355 crores ( 18.65%). The category-wise break-up of total deposits during last 5 years is presented below: As on March 31, March 31, March 31, March 31, 2005 2006 2007 2008 Current Deposits 3299 4081 5492 5780 Savings Bank Deposits 12472 14967 17120 20028 Term Deposits 24991 29452 36932 45808 Total 40762 48500 59544 71616 ADVANCES Year ended Advances Annual growth amount Annual growth (%) (Rs. in crores) March 31, 2009 6623 22774 55574 84971 (Rs. in crores) March 31, 2009 59443 9131 18.14

March 31, 2005 22152 5764 35.17

March 31, 2006 30061 7909 35.70

March 31, 2007 41914 11853 39.43

March 31, 2008 50312 8398 20.04

The population group-wise classification of the Banks Gross Advances is as under: (Rs. in crores) As on March 31, March March 31, March 31, March 31, 2005 31,2006 2007 2008 2009 Rural 3170 3963 4730 5338 5094 Semi-Urban 2438 2974 4126 4265 3438 Urban 4523 5497 7473 8273 9467 Metropolitan 12021 17627 25585 32436 41444 Total 22152 30061 41914 50312 59443 * Gross Bank credit excludes deposits under Rural Infrastructure fund (RIDF), Advances under Provident Fund Pronote etc on last Friday of March / June.

10

Disclosure Document

Asset classification and Non-Performing Assets The details of Non-Performing Assets of the Bank are furnished in the tables below: Classification of Assets as on March 31, March March 31, 2005 31,2006 2007 Standard Assets 20867.25 28877.39 40819.92 Sub Standard Assets 289.14 292.47 523.39 Doubtful Assets 930.79 829.76 468.56 Lossed Assets 64.34 61.60 101.64 Gross NPAs 1284.27 1183.83 1093.59 Gross Advances 22151.52 30061.22 41913.51 Gross NPA at the beginning of the year 1418.46 1284.27 1183.83 Addition during the year 351.39 337.65 569.60 Reduction during the year 485.58 438.09 659.84 Upgradation 104.60 85.16 62.66 Cash Recovery 106.45 89.33 149.27 Compromise 198.99 172.10 125.40 Write-off 75.54 91.50 322.51 Gross NPA at the end of the year 1284.27 1183.83 1093.59 Provision 1000.70 913.44 623.48 Interest Suspense 1.96 22.63 28.97 DICGC & ECGC Balance 10.91 1.67 0.95 Net NPA at the end of the year 270.70 246.09 440.19 Gross NPAs to Gross Advances (%) 5.80 3.94 2.61 Net Advances 21137.95 29123.48 41260.11 Net NPAs 270.70 246.09 440.19 Net NPA to Net Advances (%) 1.28 0.84 1.07

March 31, 2008 49301.64 462.61 504.48 43.42 1010.51 50312.15 1093.59 619.22 702.30 109.68 152.42 153.68 286.52 1010.51 591.69 17.55 1.46 399.81 2.00 49701.45 399.81 0.80

(Rs. in crores) March 31, 2009 58365.40 701.01 330.61 46.63 1078.00 59443.40 1010.51 846.06 778.32 179.22 188.25 79.53 331.32 1078.00 641.64 12.52 1.98 422.11 1.81 58787.26 422.11 0.72

TREASURY OPERATIONS Investments As on Gross investments SLR Investments Held Till Maturity (HTM) Available For Sale Held For Trading % of HTM to entire portfolio (%) Details of Investment Security Details Government Securities Other Approved Securities Shares Debentures & Bonds Subsidiaries & Joint Ventures Others Total (Rs. in crores) March 31, 2009 30081.35 21801.35 16554.71 13536.51 0.14 55.00 (Rs. in crores) March 31, 2009 21502.41 298.95 453.22 2356.07 87.62 5383.08 30081.35

March 31, 2005 19128.87 15407.25 10530.40 8593.23 5.24 55.05

March 31, 2006 18315.67 14153.70 9370.13 8939.99 5.55 51.16

March 31, 2007 19049.87 14792.84 13433.95 5615.92 Nil 70.52

March 31, 2008 23722.28 17909.05 12604.24 11117.69 0.35 53.13

March 31, 2005 14883.58 523.67 85.27 2564.79 87.62 983.94 19128.87

March 31, 2006 13659.88 493.82 125.42 2631.93 87.62 1317.00 18315.67

March 31, 2007 14327.06 465.78 256.72 3087.75 42.62 869.94 19049.87

March 31, 2008 17471.23 437.82 439.70 3165.78 87.62 2120.13 23722.28

The yield on investments (%) for the last five financial years is given as under: As on March 31 2005 2006 Yield including profit on sale of investments (%) 9.55 8.31 Yield excluding profit on sale of investments (%) 7.61 7.56

2007 7.96 7.58

2008 8.78 7.43

2009 9.34 7.57

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Disclosure Document

CAPITAL ADEQUACY POSITION OF THE BANK The Capital Adequacy Ratio (CAR) of the Bank stood at 13.11% as on March 31, 2009. Details of capital vis-vis risk weighted assets for last five financial years are given as under: (Rs. in crores) March 31, March 31, March 31, March 31, March 31, As on 2005 2006 2007 2008 2009 Basel I Basel I Basel I Basel II Basel II Capital Funds Tier I Capital Paid up Equity Capital 346.70 446.70 446.70 446.70 446.70 Less: Investment in Subsidiary 60.00 60.00 --Less 50% of investment in -21.31 -21.31 Subsidiary & Associates Less Intangible Assets Nil 26.84 27.07 (FPO Exp.) LESS Deferred Tax Asset Nil Nil Nil NIL NIL Sub- Total 286.70 359.86 404.63 425.39 425.39 Reserves & Surplus 950.75 2603.09 3146.64 3893.36 4531.30 Add- Innovative Perpetual Debt 150.00 Total Tier I Capital 1237.45 2962.95 3551.27 4318.75 5106.69 Tier II Capital Revaluation Reserve 270.11 264.94 395.57 395.23 393.01 General Provisions 53.00 106.00 218.32 258.16 278.54 Subordinated Debt 408.32 824.00 1321.90 1761.90 2101.90 Investment Fluctuation Reserve 429.95 Nil Nil NIL NIL Upper Tier II Bonds 500.00 Less 50% of investment in -21.31 --21.31 Subsidiary & Associates Total Tier II Capital 1161.38 1194.94 1937.79 2393.98 3252.14 Total Capital Fund 2398.83 4157.89 5489.06 6712.73 8358.86 Risk Weighted Assets 19149.99 31105.90 43841.31 55981.80 63767.87 Capital Adequacy Ratio (%) 12.53 13.37 12.52 11.99 13.11

KEY ACCOUNTING RATIOS Earning Per Share (Rs.) Net Profit (A) Rs. In crore Weighted Avg. No. of Equity Shares (B) Earning Per Share (Rs.) (A / B) Net Asset Value per Share (Rs.) Net Worth including Revaluation Reserve (A) Rs. In crore Net Worth excluding Revaluation Reserve (B) Rs. In crore No. of Shares (C) Net Asset Value per Share (Rs.) (Including RR) (A / C) Net Asset Value per Share (Rs.) (Excl RR) (B / C) Return On Net Worth before extraordinary items Adjusted Profit before Extraordinary Items Rs. In crore Average Net worth Rs. In crore Return on Net Worth before extraordinary items (%) (A / B)

541.80
346700000

706.13
439576712

750.14
446700000

974.74
446700000

768.60
446700000

15.63 2327.65 1727.40

346700000

16.06 3648.53 3049.78

446700000

16.79 4476.83 3593.34

446700000

21.82 5221.05 4342.75

446700000

17.21 5851.95 4978.58

446700000

67.14 49.82

81.45 68.72

100.22 80.44

116.88 97.22

131.00 111.45

541.80 1524.11 35.55

706.13 2388.59 29.56

750.14 3321.56 22.58

974.74 3968.05 24.56

768.60 4660.67 16.49

12

Disclosure Document

OTHER RATIOS Net NPA to Net Advance Ratio (%) Interest Income/ Working Fund (%) Non Interest Income/ Working Fund (%) Interest Spread/ Average Working Fund (%) Operating Exp. / Avg. Working Fund (%) Yield on Advances (%) Yield on Investment (%) Cost of Deposits (%) CD Ratio (%) Operating Profit Business per Employee

1.28 7.83 1.57 3.35 2.56 8.96 7.61 5.00 54.30 933.79 282

0.84 7.57 1.22 3.17 2.08 8.75 7.56 4.97 62.00 974.36 336

1.07 8.17 0.63 2.93 1.72 9.22 7.58 5.67 70.39 1099.91 495

0.80 8.49 1.16 2.41 1.56 10.76 7.43 6.67 70.25 1479.51 604

0.72 8.67 1.34 2.54 1.65 10.88 7.57 6.62 69.96 1901.15 706

Definitions of Key Ratios Credit/Deposit ratio Average Working Fund (AWF) Interest Spread/AWF (%) Operating Profit/AWF (%) Return/AWF (%) Operating Expenses/AWF (%) Cost of deposits (%) Yield on Investments (%) Yield on Advances (%) Return on Average Net Worth (%) Business per employee (Rs. lacs)

Total Advances/Total Deposits Total Average of monthly total assets as per Form X Net Interest Earned/AWF Profit prior to provisions and contingencies/AWF Net Profit/AWF Non-interest expenditure/AWF Interest expended/Average Deposits as per Form X Interest earned on Investments/Average Investments as per Form X Interest earned on Advances/Average Advances as per Form X Net Profit/Average of Opening & Closing Net Worth Total Deposits excl. Bank Deposits plus Total Advances/Employee Strength

Subsidiary and Associates of the Bank The Bank has floated one subsidiary viz. AllBank Finance Ltd.and three Regional Rural Banks viz. Triveni Kshetriya Gramin Bank,Lucknow Kshetriya Gramin Bank and Sharda Gramin Bank and one joint venture namely Universal Sompo General Insurance Company Ltd. AllBank Finance Ltd. is a wholly owned subsidiary of Allahabad Bank with a capital base of Rs. 15 crore. The company has obtained Category-I Merchant Banking and underwriting registration from SEBI. AllBank Finance Ltd. is engaged in Corporate Advisory Services,Project Appaisal,Issue Management, Loan Syndication and Underwriting. The subsidiary posted a profit of Rs. 9.42 crore during 2008-09 as against Rs. 3.95 crore during 2007-2008. Out of three Regional Rural Banks (RRBs) sponsored by the Bank, two are operating in Uttar Pradesh and one in Madhya Pradesh. These RRBs further improved their performance during 2008-09 with an aggregate profit of Rs.47.66 crore during 2008-09 as against 43.01 crore during 2007-08. The accumulated Profit stood at Rs. 386.62 crore as against Rs. 340.77 crore during 2007-08. The sponsored RRBs disbursed Rs. 1033.02 crore during 2008-09 as against target of Rs. 864.98 crore under the Service Area Credit Plan. A total of 1,52,825 Kisan Credit Cards were issued during 2008-09. With the approval from RBI and Govt. of India , the Bank has floated a Joint Venture company for General Insurance Business in partnership with Indian Overseas Bank, Karnataka Bank Ltd., Dabur Ltd. And Sompo Japan. The joint venture has started functioning w.e.f. 2007-08. The Universal Sompo General Insurance Company Ltd. has posted a loss of Rs. 13.00 crores during the year 2008-09.

13

Disclosure Document

VI. BRIEF HISTORY OF ISSUER SINCE INCEPTION, DETAILS OF ACTIVITIES INCLUDING ANY REORGANIZATION, RECONSTRUCTION OR AMALGAMATION, CHANGES IN CAPITAL STRUCTURE, (AUTHORIZED, ISSUED AND SUBSCRIBED) AND BORROWINGS HISTORY SINCE INCEPTION Allahabad Bank, the oldest joint Stock Bank of the country, was set up in the historic town of Allahabad on April 24, 1865 by a Group of Europeans. At that juncture, organised industry, trade and banking had just started taking shape in India. The Bank started with a subscribed capital of Rs. 2 lacs and by the end of 19th century, it grew with branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Kolkata and Delhi. In the early 20th century, with the start of Swadeshi Movement, Allahabad Bank witnessed a spurt in deposits and the reserves increased to over Rs. 30 lacs by 1910. In 1920, the Bank was taken over by P&O Banking Corporation at a bid price of Rs. 436 per share. The Head Office and the Registered Office of the Bank were then shifted to Kolkata in 1923 for business considerations and operational convenience. In 1927, the Bank went into the fold of Chartered Bank that acquired the controlling interest in the P&O Banking Corporation. The Bank passed through the critical period of Great Depression during the early thirties, which caused a general stagnation in the global markets without sparing the Indian Banking Industry. The Bank dovetailed its functioning in accordance with the exigencies of the Five Year Plans, which were started in 1951. In the post independence era, Allahabad Bank maintained a steady growth and the Bank opened its 100th branch by 1964. On July 19, 1969, along with 13 other major commercial banks, Allahabad Bank was nationalised. At the time of nationalisation, the Bank had a network of 151 branches, deposits of Rs. 114 crores and advances of Rs. 82 crores to its credit. With nationalisation, the Bank spread its activities in the rural, unbanked and under-banked areas. In order to bolster the rural economy, a plethora of Social Banking Schemes was introduced. Thus, Lead Bank Scheme (1969), Regional Rural Banks (1975), Twenty-point Programme (1975), New 20-point Programme (1981), Integrated Rural Development Programme (1980) etc. were introduced in the Indian Banking industry. Directed lending to priority sectors, weaker sections, Scheduled Castes/ Scheduled Tribes and Other Backward Castes were given a greater thrust and the Bank responded to this initiative and increased its presence in these areas also. In October 1989, United Industrial Bank Limited was amalgamated into Allahabad Bank. As on 31 Mar 2009 the Branch network of the Bank increased to 2260 with 968 rural Branches, 406 semi urban Branches, 464 urban Branches, 421Metropolitan and one foreign Branch. As on March 31, 2009 the Banks priority sector credit stood at Rs. 20435 crores, forming 41.10% of adjusted net bank credit and the agriculture credit was over Rs. 9568 crore constituting 19.20% of adjusted net bank credit. The Bank also opened specialized branches such as Industrial Finance Branches, International Branches, SSI Finance Branches, and Recovery Branches etc. The Bank made a foray into merchant banking activity in 1984 and subsequently transferred the merchant banking activities to All Bank Finance Limited, a wholly owned subsidiary, in 1991. AllBank Finance Limited was registered as a Category-I Merchant Banker with SEBI and undertook activities such as project advisory services, loan syndication, issue management, leasing, trusteeship and portfolio investment services. Consequent upon the SEBI Rules and Regulations notified on December 09, 1997 for segregation of Capital Market and fund based activities into separate entities, the Company surrendered its Merchant Banking registration with SEBI with effect from July 01, 1998 and got itself registered as a NBFC with RBI on August 21, 1998. The AllBank Finance Ltd. posted a profit of Rs. 9.42 crore during 2008-09 as against 3.95 crore during 2007-08. One of the major challenges faced by the Bank was the accumulated losses incurred by it for three consecutive years, i.e. from 1992-93 to 1994-95, owing to the adoption of prudential accounting norms, in line with RBI directives. To overcome this situation and to strengthen the bank in various functional areas, a major revamping exercise was initiated. The Bank put a greater thrust on areas like technological up-gradation & modernization, improvement in customer service, credit management with focus to reduce non-performing assets etc. The Bank staged a turnaround in 1995-96 with a net profit of Rs. 5.62 crore, and consistently earned profit .During the year 2008-09 the bank earned a profit of Rs. 768.60 crore. The Bank became the first Nationalized Bank in Eastern India to become a depository participant of National Securities Depository Limited (NSDL) to offer demat and related services and initiated Flexi-fix Deposit Scheme to mobilize resources. The Bank also introduced Kisan Card to facilitate agriculture related activities as well as to meet the domestic requirements of farmers. In order to boost credit off-take, the Bank has launched user-friendly and attractive products namely, consumer finance, car finance, educational loans, personal loan etc.

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Disclosure Document

The growth of the Bank over the years is given below: Year ended No. of Branches Paid-up Capital 1865 1 0.02 1890 4 0.04 1910 15 0.20 1930 37 0.36 1950 58 0.46 1970 211 1.05 1989 1509 57.50 1999 1884 246.70 2000 1893 246.70 2001 1903 246.70 2002 1914 246.70 2003 1923 346.70 2004 1935 346.70 2005 1951 346.70 2006 1999 446.70 2007 2060 446.70 2008 2155 446.70 2009 2260 446.70

Deposits 0.01 0.70 5.53 11.36 27.16 140.70 4,034.04 15,510.35 17642.10 20106.02 22665.94 25463.38 31476.61 40762.08 48499.69 59544.66 71616.38 84971.79

(Rs. In crores) Advances 0.01 0.53 4.66 5.21 14.97 95.95 1,831.77 7,057.07 8240.06 10315.80 11815.01 13486.94 16387.66 22151.52 30061.22 41913.51 50312.16 59443.40

Present Status As on March 31, 2009, the Bank had 2260 branches, comprising 968 rural, 406 semi-urban, 464 urban and 421 metropolitan, which formed 42.84%, 17.96%, 20.53% and 18.63% of the total respectively. The branches include 74 specialized branches (i.e. 6 Industrial Finance Branches, 18 SME Finance Branches, 5 International Branches, 6 Recovery Branches, 1 NRI Branch, 1 Industrial Finance-cum-International Branch, 2 Specialized Personal Banking Branch, 1 Specialized Savings Bank Branch, 2 Quick Collection Service Branches and 2 Trading Finance Branches, 1 Specialized commercial agriculture, 1 Forex cum Treasury Management, 4 Agriculture Finance , 3 Regional Processing Centre (Forex) ,1 Agriculture Development Branch & 1 CMS Branch besides 19 Service Branches. The Bank has 69 Extension Counters. A number of Banks branches and offices are housed in the Banks owned premises situated at prime locations in major cities of the country. Pursuant to organizational restructuring, the Bank is currently operating with a 3-tier structure since June 01, 2001 which was further restructured in November, 2004 by reducing the number of Regional Offices from 48 to 41 and renaming them as Zonal Offices, on account of synergic reasons and improvement in level of efficiency, reduction in overhead cost and other operating expenditures. The Bank has been entrusted with State Level Bankers Committee (SLBC) convener ship in the newly formed state of Jharkhand. The Bank is continuing its utmost endeavor for economic upliftment of the state through its various developmental programmes. The Bank has set up a residential institute in the name of Birsha Munda Institute of Entrepreneurship Development( BMIED) at Hazaribagh as a part of promotional measures for enhancement of flow of bank credit in Jharkhand State. The institute has imparted training to 3048 unemployed youths of which 633 trained persons received financial assistance amounting to Rs. 7.21 crore from our Bank till March 31, 2009. The Bank came out with its maiden Equity IPO in the month of October 2002. The at par public issue evolved overwhelming response from the retail investors. The Bank mobilized more than Rs. 370 crores against the offer size of Rs. 100 crores. The number of applications from retail investors in the issue exceeded 2.23 lacs. After the issue, the holding of the Government of India came down to 71.16%. Capital Adequacy Ratio improved to 11.15% as on March 31, 2003 due to increase in capital through maiden equity public issue. The Bank came out with its follow-on Equity public offer in the month of April 2005 through book building route. The issue demonstrated a repeated overwhelming response from the investors. The Bank mobilized more than Rs. 7380 crore against the offer size of Rs.820 crore. After the issue, the holding of the Government of India came down to 55.23%. The Bank has been giving much importance to Human Resource Development. It has sent some Officers for overseas training also. Computerization and automation of operations continued to receive focused attention from the Bank. The Bank has computerized all its branches & extension counters,. ATM numbering 211 and with membership of National financial switch , our card holders can now have access to over 38000 and 5 lacs POS terminals.. The bank has entered into tie up with VISA for issuance of Debit Cards and with aggressive marketing strategies. The bank has already issued nearly 4 lakhs International ATM Debit Cards. M/s TCS has been selected as the system integrator for implementation of CBS in 900 branches of our Bank. As against 209 branches under CBS as on March 31,2008, 916 branches/offices were on CBS as on March 31 ,2009 covering more than 81% of business of the Bank.

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Disclosure Document

The Bank has undertaken strategic planning in order to become one of the strongest banks in the country in near future through both product and geographical diversification. For this purpose tie up arrangements have been made with various insurance companies and mutual funds such as Franklin Templeton, Kotak Mahindra, PNB Mutual Funds, Life Insurance Corporation, UTI Mutual Fund etc. The Bank has opened its maiden overseas branch at Hong Kong and also representative office at Shenzhen, China. With the Approval from Reserve Bank of India, General insurance business under Joint venture with Indian Overseas Bank, Karnataka Bank Ltd, Dabour Ltd and Sampo Japan has started functioning. CAPITAL STRUCTURE (as on March 31, 2009) Particulars 1. SHARE CAPITAL a. Authorised Equity Share Capital 150,00,00,000 Equity Shares of Rs. 10/- each b. Issued Equity Share Capital 44,67,00,000 Equity Shares of Rs. 10/- each (includes 24,67,00,000 equity shares of Rs 10/- each amounting to Rs. 24,67,00,000 held by GOI) c. Subscribed & Paid-up Equity Share Capital 44,67,00,000 Equity Shares of Rs. 10/- each (includes 24,67,00,000 equity shares of Rs 10/- each amounting to Rs. 246,70,00,000 held by GOI) 2. SHARE PREMIUM ACCOUNT (Rs. in crores) Amount

1500.00 446.70

446.70 720.00

SHARE CAPITAL HISTORY (since nationalisation on July 19, 1969) (Rs. in crores) Year/ Half Year ended Increase/ Mode Paid-Up (Decrease) Capital in capital December 31, 1970 Acquisition of Share Capital on Nationalisation by GoI 1.05 December 31, 1984 0.12 Contribution to Capital by GoI 1.17 December 31, 1985 14.83 Contribution to Capital by GoI 16.00 December 31, 1986 10.00 Contribution to Capital by GoI 26.00 March 31, 1989 31.50 Contribution to Capital by GoI 57.50 March 31, 1992 50.00 Contribution to Capital by GoI 107.50 March 31, 1993 65.00 Contribution to Capital by GoI 172.50 March 31, 1994 90.00 Contribution to Capital by GoI 262.50 March 31, 1995 356.20 Contribution to Capital by GoI 618.70 March 31, 1996 160.00 Contribution to Capital by GoI 778.70 March 31, 1997 (532.00) Adjustment of Accumulated losses against capital 246.70 November, 26, 2002 100.00 Fresh issue of capital (public issue) 346.70 April 26, 2005 100.00 Fresh issue of capital (public issue) 446.70 TOP 10 SHAREHOLDERS (as on June 30, 2009) Sr. Name of Shareholder No. 1 President of India 2 Life Insurance Corporation of India 3 Citigroup Global Markets Mauritius Pvt. Ltd. 4 Swiss Finance Corporation (Mauritious) 5 Sanford C Bernstein and Co. Delaware 6 FIL Trustee Company Pvt. Ltd. 7 Goldman Sachs Company Pvt. Ltd 8 The State Teachers Retirement System 9 ACM Bernstein Value Investment-EM 10 Bajaj Allianz Life Insurance Company Ltd. SHAREHOLDING PATTERN (as on June 30, 2009) Sr. Category No. I. Promoter (Government of India) Total (Promoters) II. Institutions a. Mutual Funds/ UTI b. Financial Institutions/ Banks c. Insurance Companies d. Foreign Institutional Investors Total (Institutions)

Number of Shares Held 246700000 51970523 10425223 9901318 4386600 3350075 2649625 2605900 2110174 2061278

% Shareholding 55.23 11.63 2.33 2.22 0.98 0.75 0.59 0.58 0.47 0.46

No. of Shareholders 1 1 31 9 15 68 123

No. of Shares Held 246700000 246700000 12063477 377102 56852542 48876548 118169669

% Shareholding 55.23 55.23 2.70 0.08 12.73 10.94 26.45

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Disclosure Document

III. a. b. c. d.

Non-Institutions Bodies Corporate Individuals (less than Rs. 1 lac of nominal value) Individuals (more than Rs. 1 lac of nominal value) Non-Resident Indians Total (Non-Institutions) IV. Shares held by Custodians and against which Depository Receipts have been issued Grand Total

1774 199470 215 657 202116 0 202240

14508076 59575943 7375956 370356 81830331 0 446700000

3.25 13.34 1.65 0.08 18.32 0 100.00

BORROWINGS The borrowings of Bank other than Savings, Current & Term deposit aggregating to Rs. 937.03 crores as on March 31, 2009 stood as under: (Rs. in crores) Particulars of Borrowings Amount outstanding Interest Rate Repayment Date/ Schedule Borrowing in India Refinance from NABARD/SIDBI 74.19 4.00% to 8.5% Withdrawable on demand Borrowings Outside India Borrowing at Hong Kong Branch 862.84 0.30% to 3.95% Withdrawable on demand Total 937.03 Besides the above, an amount of Rs. 2911.90 crores was outstanding under Unsecured Bonds as on March 31, 2009, details of which are as under: A. LOWER TIER II BONDS Particulars Deemed Date of Allotment

Tenure (in months)

Credit Rating

Interest Rate
(% p.a., annually)

Date of Redemptio n 30.04.2010

Subordinated Tier II Bonds Series III Subordinated Tier II Bonds Series IV Subordinated Tier II Bonds Series V Subordinated Tier II Bonds Series VI Subordinated Tier II Bonds Series VII Subordinated Tier II Bonds Series VIII

31.03.2003

85

AA(ind) by FITCH AA+ by CARE & AA(ind) by FITCH AA+ by CARE & AA/Stable by CRISIL AA+ by CARE & AA/Stable by CRISIL AA+ by CARE & AA/Stable by CRISIL AA+ by CARE & AA/Stable by CRISIL Total

7.00

Issue Amount (Rs. In crores) 100.00

31.03.2004

99

5.90

30.06.2012

200.00

13.03.2006

120

8.00 semi annually 8.85

12.03.2016

500.00

29.09.2006

120

29.09.2016

561.90

25.09.2007

120

10.00

25.09.2017

500.00

26.03.2009

120

9.23

26.03.2019

400.00

2261.90

B. UPPAR TIER II BONDS Issue Series Deemed Date of Allotment Subordinated Upper Tier II Bonds Series I 19.03.2009

Tenure (in months)

Credit Rating

Interest Rate

Date of

Issue (Rs. In crores) 500.00

(% p.a., annually) Redemption Amount

AA/Stable by 9.28 19.03.2024 CRISIL & CARE AA by CARE Total 500.00 * Call Option at the end of 10th year with step up coupon option of 0.50% after the end of 10 year if call option is not exercised.

180*

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Disclosure Document

C. INNOVATIVE PERPETUAL DEBT INSTRUMENT (IPDI) TIER-I BONDS Particulars Date of Outstanding Interest Credit Rating Tenure Call Option Allotment Balance Rate Due Date (Rs. in crs.) (% p.a.) Subordinated 30.03.2009 150.00 9.20 AA/Stable by Perpetual * 30.03.2019 Perpetual CRISIL & CARE & every year Bonds Series I AA by CARE thereafter TOTAL 150.00 * Call Option at the end of 10th year with step up coupon option of 0.50% after the end of 10 year if call option is not exercised. Details of Top 5 Borrowings of the Bank as on March 31, 2009 Sr. No Lender Outstanding Balance (Rs. in crore) Refinance from RBI 1 Borrowing from NABARD/SIDBI 74.19 Borrowing Outside India 2 Borrowing from Axis Bank Ltd. 62.50 3 Borrowing from Bank of Musket Oman 300.00 4 Borrowing from Standard Chartered 109.00 Singapore 5 Borrowing from Syndicate Bank London 144.00

Interest Rate (%)

4.00% to 8.50% 0.30% to 1.30% 3.45% to 3.81% 3.71% to 3.85% 3.10% to 3.95%

All the above borrowings are unsecured. No directors have given any personal guarantee for collaterally securing the borrowings.

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Disclosure Document

VII. SUMMARY TERM SHEET Issuer Issue Size Issue Objects Instrument Nature & Status of Instrument Issuance/ Trading Credit Rating Security Face Value Issue Price Redemption Price Minimum Subscription Tenure Put & Call Option Redemption/ Maturity Redemption Date Coupon/ Interest Rate * Interest Payment Interest Payment Date Listing Trustee Depository Registrars Banker to the Issue Interest on Application Money * Settlement Mode of Subscription Allahabad Bank Rs. 450.00 crore Augmenting Tier II Capital for strengthening the Capital Adequacy and enhancing long term resources of the Bank Unsecured Redeemable Non-Convertible Subordinated Lower Tier-II Bonds (Series IX) in the nature of Promissory Notes (Bonds) These Bonds shall be fully paid-up, unsecured, subordinated to the claims of other creditors, free of restrictive clauses and shall not be redeemable at the initiative of the holder or without the consent of the Reserve Bank of India. In Dematerialized Form CARE AA+ by CARE and AA+/Stable by CRISIL Unsecured Rs. 10,00,000/- per Bond At par (Rs. 10,00,000/- per Bond) At par (Rs. 10,00,000/- per Bond) 1 Bond and in multiples of 1 Bond thereafter 10 Years (120 Months) None At par at the end of 10 Years from the Deemed Date of Allotment (with prior approval of RBI) August 04, 2019 8.45 % p.a. Annual On August 04, every year Proposed on the Wholesale Debt Market (WDM) Segment of the National Stock Exchange of India Ltd. (NSE) IDBI Trusteeship Services Ltd. National Securities Depository Ltd. and Central Depository Services (India) Ltd. Maheshwari Datamatics Pvt. Ltd. Allahabad Bank At the coupon rate (i.e. @ 8.45% p.a.) from the date of realization of cheque(s)/ demand draft(s)/ RTGS upto but excluding the Deemed Date of Allotment Payment of interest and repayment of principal shall be made by way of cheque(s)/ interest/ redemption warrant(s)/ demand draft(s)/ credit through RTGS system Cheque(s)/ demand draft(s) may be drawn in favour of Allahabad Bank A/c Subordinated Lower Tier II Bonds (Series IX) " and crossed Account Payee Only payable at par at designated centers mentioned elsewhere in the Disclosure Document or by way of electronic transfer of funds through RTGS mechanism for credit in the account of Application Money for Allahabad Bank Subordinated Lower Tier II Bonds (Series IX) at Allahabad Bank, Fort Mumbai branch having IFSC Code No. ALLA0210182 July 28, 2009 July 31, 2009 July 28, 2009 to July 31, 2009 August 04, 2009

Issue Opens on ^ Issue Closes on ^ Pay-In Dates ^ Deemed Date of Allotment ^

* subject to deduction of tax at source, as applicable. ^ The Bank reserves its sole and absolute right to modify (pre-pone/ postpone) the issue opening/ closing/ pay-in date(s) without giving any reasons or prior notice. In such a case, investors shall be intimated about the revised time schedule by the Bank. The Bank also reserves the right to keep multiple Deemed Date(s) of Allotment at its sole and absolute discretion without any notice.

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Disclosure Document

VIII.

TERMS OF OFFER (DETAILS OF DEBT SECURITIES PROPOSED TO BE ISSUED, MODE OF ISSUANCE, ISSUE SIZE, UTILIZATION OF ISSUE PROCEEDS, STOCK EXCHANGES WHERE SECURITIES ARE PROPOSED TO BE LISTED, REDEMPTION AMOUNT, PERIOD OF MATURITY, YIELD ON REDEMPTION, DISCOUNT AT WHICH OFFER IS MADE AND EFFECTIVE YIELD FOR INVESTOR)

PRIVATE PLACEMENT OF UNSECURED REDEEMABLE NON-CONVERTIBLE SUBORDINATED LOWER TIER II BONDS (SERIES IX) IN THE NATURE OF PROMISSORY NOTES OF RS. 10 LAKH EACH FOR CASH AT PAR AGGREGATING RS. 450 CRORES TO BE ISSUED BY ALLAHABAD BANK Issue Size Allahabad Bank (the Issuer or the Bank) proposes to raise upto Rs. 450 crore through issue of Unsecured Redeemable Non-Convertible Subordinated Lower Tier II Bonds (Series IX) in the nature of Promissory Notes (hereinafter referred to as theBonds) of the face value of Rs. 10, 00,000/- each by way of private placement ('the Issue). Governing Law & Provisions The Bonds offered are subject to provisions of the Companies Act, 1956, Securities Contract Regulation Act, 1956, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, terms of this Disclosure Document, Instructions contained in the Application Form and other terms and conditions as may be incorporated in the Trust Agreement and Bond Trust Deed. Over and above such terms and conditions, the Bonds shall also be subject to the applicable provisions of the Depositories Act 1996 and the laws as applicable, guidelines, notifications and regulations relating to the allotment & issue of capital and listing of securities issued from time to time by the Government of India (GoI), Reserve Bank of India (RBI), Securities & Exchange Board of India (SEBI), concerned Stock Exchanges or any other authorities and other documents that may be executed in respect of the Bonds. Any disputes arising out of this issue will be subject to the exclusive jurisdiction of the courts of Kolkata. Authority for the Placement The present private placement of Unsecured Redeemable Non-Convertible Subordinated Lower Tier II Bonds (Series IX) in the nature of Promissory Notes is being made in accordance with extant RBI master circular no. DBOD.No.BP.BC.21/21.06.001/ 2009-10 dated July 01, 2009 on Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of the New Capital Adequacy Framework covering terms and conditions for issue of Subordinated Bonds to qualify for inclusion as Lower Tier-II Capital. The private placement of Bonds under the terms of this Disclosure Document is being made pursuant to the approval given by the Board of Directors of the Bank in their meeting held on June 15, 2009. The Bonds to be raised are within the overall borrowing powers of the Bank. This being a private placement of debt securities, the eligibility norms of SEBI (DIP) Guidelines, 2000 shall not be applicable. Further the Bank, its promoter, its associates and companies with which the directors of the Bank are associated as directors or promoters are not prohibited from accessing the capital market/ debt securities market under any order or directions passed by SEBI. The Bank can undertake the proposed issue of bonds in view of the present approvals and no further approval from any government authority(ies)/ Reserve Bank of India (RBI) is required by the Bank in this connection. Objects of the Issue The proposed issue of Bonds is being made for augmenting Tier II Capital of the Bank for strengthening its Capital Adequacy and for enhancing the long-term resources of the Bank. The expenses of the issue shall be borne by the Bank. Utilisation of Issue Proceeds The funds raised through this private placement are not meant for any specific project as such and therefore the proceeds of this Issue shall be utilized for the regular business activities of the Bank. The Bank has to shore up its capital base to match the growth in assets and maintain level of CAR higher than the minimum level prescribed by RBI. The requirement of capital has increased on account of phased convergence to Basel II norms by Reserve Bank of India and growth in credit. The Bank is managed by professionals under the supervision and control of its Board of Directors. Further, the Bank is subject to a number of regulatory checks and balances as stipulated in its regulatory environment. Therefore, the management shall ensure that the funds raised via this private placement shall be utilized only towards satisfactory fulfilment of the Objects of the Issue. Minimum Subscription As the current issue of Bonds is being made on private placement basis, the requirement of minimum subscription shall not be applicable and therefore the Bank shall not be liable to refund the issue subscription(s)/ proceed(s) in the event of the total issue collection falling short of issue size or certain percentage of issue size.

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Underwriting The present Issue of Bonds on private placement basis has not been underwritten. Nature and Status of Bonds The Bonds are to be issued in the form of Unsecured Redeemable Non-Convertible Subordinated Lower Tier II Bonds (Series IX) in the nature of Promissory Notes for inclusion as Lower Tier II capital. As per RBI master circular no. DBOD.No.BP.BC.21/21.06.001/ 2009-10 dated July 01, 2009 on Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of the New Capital Adequacy Framework covering terms and conditions for issue of Subordinated Bonds to qualify for inclusion as Lower Tier-II Capital, these Bonds shall be fully paid-up, unsecured, subordinated to the claims of other creditors, free of restrictive clauses and shall not be redeemable at the initiative of the holder or without the consent of the Reserve Bank of India. Face Value, Issue Price, Effective Yield for Investor As each Bond has a face value of Rs. 10,00,000/- and is issued as well as redeemable at par i.e. Rs. 10,00,000/- per Bond, the effective yield for the investors shall be the same as coupon rate on the Bonds (i.e. 8.45% p.a.). Terms of Payment The full face value of the Bonds applied for is to be paid alongwith the Application Form. Investor(s) need to send in the Application Form and the cheque(s)/ demand draft(s)/ RTGS for the full face value of the Bonds applied for. Face Value per Bond Minimum Application for Amount Payable on Application per Bond Rs. 10,00,000/1 Bond and in multiples Rs. 10,00,000/of 1 Bond thereafter Deemed Date of Allotment Interest on Bonds shall accrue to the Bondholder(s) from and including August 04, 2009 which shall be the Deemed Date of Allotment. All benefits relating to the Bonds will be available to the investors from the Deemed Date of Allotment. The actual allotment of Bonds may take place on a date other than the Deemed Date of Allotment. The Bank reserves the right to keep multiple allotment date(s)/ deemed date(s) of allotment at its sole and absolute discretion without any prior notice. In case if the issue closing date is changed (pre-poned/ postponed), the Deemed Date of Allotment may also be changed (pre-poned/ postponed) by the Bank at its sole and absolute discretion. Letter(s) of Allotment/ Bond Certificate(s)/ Refund Order(s) Issue of Letter(s) of Allotment The beneficiary account of the investor(s) with National Securities Depository Ltd. (NSDL)/ Central Depository Services (India) Ltd. (CDSL)/ Depository Participant will be given initial credit within two working days from the Deemed Date of Allotment. The initial credit in the account will be akin to the Letter of Allotment. On completion of the all statutory formalities, such credit in the account will be akin to a Bond Certificate. Issue of Bond Certificate(s) Subject to the completion of all statutory formalities within 3 months from the Deemed Date of Allotment, or such extended period as may be approved by the appropriate authority(ies), the initial credit akin to a Letter of Allotment in the Beneficiary Account of the investor would be replaced with the number of Bonds allotted. The Bonds since issued in electronic (dematerialized) form, will be governed by the provisions of The Depository Act, 1996, Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996, rules notified by NSDL/ CDSL/ Depository Participant from time to time and other applicable laws and rules notified in respect thereof. Depository Arrangements The Bank has appointed M/s Maheshwari Datamatics Pvt. Ltd. (herein after referred to as the Registrar/RTA) [R.O 6, Mangoe Lane,Surendra Mohan Ghosh Sarani, 2nd Floor, Kolkata-700 001.Tel No. (033) 2243-5809/ 5029, Fax No. 033-2248-4787, E-mail: mdpl@cal.vsnl.net.in, Website: www.mdpl.in] as Registrars & Transfer Agent for the present Bond Issue. The Bank shall make necessary depository arrangements with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for issue and holding of Bonds in dematerialized form. In this context the Bank shall sign two tripartite agreements as under: Tripartite Agreement between Allahabad Bank, Maheshwari Datamatics Pvt Ltd. and National Securities Depository Limited for offering depository option to the investors. Tripartite Agreement between Allahabad Bank, Maheshwari Datamatics Pvt. Ltd. and Central Depository Services (India) Limited for offering depository option to the investors. Investors can hold the bonds only in dematerialized form and deal with the same as per the provisions of Depositories Act, 1996 as amended from time to time.

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Procedure for applying for Demat Facility The applicant must have at least one beneficiary account with any of the Depository Participants (DPs) of NSDL or CDSL prior to making the application. The applicant must necessarily fill in the details (including the beneficiary account number and Depository Participants ID) appearing in the Application Form under the heading Details for Issue of Bonds in Electronic/ Dematerialised Form. Bonds allotted to an applicant will be credited directly to the applicants respective Beneficiary Account(s) with the DP. For subscribing the bonds, names in the application form should be identical to those appearing in the account details in the depository. In case of joint holders, the names should necessarily be in the same sequence as they appear in the account details in the depository. The Registrars to the Issue will directly send non-transferable allotment advice/refund orders to the applicant. If incomplete/ incorrect details are given under the heading Details for Issue of Bonds in Electronic/ Dematerialised Form in the application form, it will be deemed to be an incomplete application and the same may be held liable for rejection at the sole discretion of the Bank. For allotment of Bonds, the address, nomination details and other details of the applicant as registered with his/her DP shall be used for all correspondence with the applicant. The Applicant is therefore responsible for the correctness of his/her demographic details given in the application form vis--vis those with his/her DP. In case the information is incorrect or insufficient, the Issuer would not be liable for losses, if any. It may be noted that Bonds being issued in electronic form, the same can be traded only on the Stock Exchanges having electronic connectivity with NSDL or CDSL. National Stock Exchange of India Ltd. where the Bonds of the Bank are proposed to be listed has connectivity with NSDL and CDSL. Interest or other benefits would be paid to those Bondholders whose names appear on the list of beneficial owners given by the Depositories to the Bank as on Record Date/ Book Closure Date. In case of those Bonds for which the beneficial owner is not identified by the Depository as on the Record Date/ Book Closure Date, the Bank would keep in abeyance the payment of interest or other benefits, till such time that the beneficial owner is identified by the Depository and conveyed to the Bank, whereupon the interest or benefits will be paid to the beneficiaries, as identified, within a period of 30 days. Investors may note that pursuant to current provision , the Bonds of the Bank would be issued and traded only in dematerialised form. Market Lot The market lot will be one Bond (Market Lot). Since the Bonds are being issued only in dematerialised form, the odd lots will not arise either at the time of issuance or at the time of transfer of Bonds. Trading of Bonds The marketable lot for the purpose of trading of Bonds shall be Rs.10 lakhs i.e the face value of one bond. Trading of Bonds would be permitted in demat mode only in standard denomination of Rs.10 lakhs and such trades shall be cleared and settled in recognised stock exchange(s) subject to conditions specified by SEBI. In case of trading in Bonds which has been made over the counter, the trades shall be executed and reported on a recognized stock exchange having a nation wide trading terminal or such other platform as may be specified by SEBI. Mode of Transfer of Bonds Bonds shall be transferred subject to and in accordance with the rules/ procedures as prescribed by the NSDL/ CDSL/ Depository Participant of the transferor/ transferee and any other applicable laws and rules notified in respect thereof. The normal procedure followed for transfer of securities held in dematerialized form shall be followed for transfer of these Bonds held in electronic form. The seller should give delivery instructions containing details of the buyers DP account to his depository participant. Transfer of Bonds to and from NRIs/ OCBs, in case they seek to hold the Bonds and are eligible to do so, will be governed by the then prevailing guidelines of RBI. The transferee(s) should ensure that the transfer formalities are completed prior to the Record Date. In the absence of the same, interest will be paid/ redemption will be made to the person, whose name appears in the records of the Depository. In such cases, claims, if any, by the transferee(s) would need to be settled with the transferor(s) and not with the Bank. Interest on Application Money Interest at the coupon rate (i.e. at the rate of 8.45 per cent per annum) (subject to deduction of income tax under the provisions of the Income Tax Act, 1961, or any other statutory modification or re-enactments thereof, as applicable) will be paid to all the applicants on the application money for the Bonds. Such interest shall be paid from the date of realisation of cheque(s)/ demand draft(s)/ RTGS upto one day prior to the Deemed Date of Allotment. The interest on application money will be computed on an Actual/ 366 day basis. Such interest would be paid on all the valid applications. Where the entire subscription amount has been refunded, the interest on application money will be paid alongwith the Refund Orders. Where an applicant is allotted lesser number of bonds than applied for, the excess amount paid on application will be refunded to the applicant alongwith the interest on refunded money. 22

Disclosure Document

The interest cheque(s)/ demand draft(s) for interest on application money (alongwith Refund Orders, in case of refund of application money, if any) shall be dispatched by the Bank within 15 days from the Deemed Date of Allotment by registered post to the sole/ first applicant, at the sole risk of the applicant. Interest on the Bonds The Bonds shall carry interest at the rate of 8.45 % per annum (subject to deduction of tax at source at the rates prevailing from time to time under the provisions of the Income Tax Act, 1961, or any other statutory modification or re-enactment thereof for which a certificate will be issued by the Bank) from, and including, August 04, 2009 upto, but excluding, August 04, 2019, payable on August 04, in each year, to the holders of Bonds (the Holders and each, a Holder) as of the relevant Record Date. The interest payable on any Interest Payment Date will be paid to the Bondholder(s) whose names appear in the List of Beneficial Owners given by the Depository to the Bank as on the Record Date. The interest period is defined as the actual number of days in a year as 365 (366 in case of a leap year) between August 04, and August 04, including the first day but excluding the last day and so on. The last interest period is defined as the actual number of days falling between August 04, 2018 and redemption date including the first date but excluding the last date. The last interest payment would be made on the redemption date alongwith the redemption of principal amount. If any interest payment date falls on a day which is not a Business Day (Business Day being a day on which Commercial Banks are open for Business in the city of Kolkata, West Bengal) then payment of interest will be made on the next day that is a business day but without liability for making payment of interest for the intervening period. In case the Deemed Date of Allotment is revised (pre-poned/ postponed) then the above Interest Payment Date may also be revised pre-poned/ postponed) accordingly by the Bank at its sole & absolute discretion. Computation of Interest Interest for each of the interest periods shall be calculated, on 'actual/ 365 (366 in case of a leap year) days' basis, on the face value of principal outstanding on the Bonds at the coupon rate rounded off to the nearest Rupee. Record Date The Record Date for the Bonds shall be 30 days prior to each interest payment date and/ or redemption date. Deduction of Tax at Source Tax as applicable under the provisions of Income Tax Act, 1961, or any other applicable statutory modification or re-enactments thereof will be deducted at source at the time of payment of interest/principal amount. The investor(s) desirous of claiming exemption from deduction of income tax at source on the interest on application money are required to submit the necessary certificate(s) as applicable thereof, in duplicate, along with the Application Form in terms of Income Tax rules. Interest payable subsequent to the Deemed Date of Allotment of Bonds will be treated as Interest on Securities in accordance with the provisions of Income Tax Rules. Bondholders desirous of claiming exemption from deduction of income tax at source on the interest payable on Bonds should submit tax exemption certificate/ document, as per Section 193 of the Income Tax Act, 1961, if any, at the Head Office of the Bank, at least 45 days before the due date of payment. Regarding deduction of tax at source and the requisite declaration forms to be submitted, prospective investors are advised to consult their own tax consultant(s). Put Option/ Call Option There is no Put Option available to the Bondholder(s). As per RBI master circular no. DBOD.No.BP.BC.21/21.06.001/ 2009-10 dated July 01, 2009 on Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of the New Capital Adequacy Framework covering terms and conditions for issue of Subordinated Bonds to qualify for inclusion as Lower Tier-II Capital, these Bonds shall be free of restrictive clauses and shall not redeemable at the initiative of the holder or without the consent of the Reserve Bank of India. Similarly there is no Call Option available to the Bank to redeem the bonds prior to maturity.

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Redemption The face value of the Bonds shall be redeemed at par, on expiry of 10 Years from the Deemed Date of Allotment i.e. on August 04, 2019. The Bonds will not carry any obligation, for interest or otherwise, after the date of redemption. The Bonds held in the dematerialized form shall be taken as discharged on payment of the redemption amount by the Bank on maturity to the registered Bondholders whose name appear in the Register of Bondholders on the Record Date. Such payment will be a legal discharge of the liability of the Bank towards the Bondholders. On such payment being made, the Bank will inform NSDL/CDSL and accordingly the account of the Bondholders with NSDL/CDSL will be adjusted. As per RBI master circular no. DBOD.No.BP.BC.21/21.06.001/ 2009-10 dated July 01, 2009 on Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of the New Capital Adequacy Framework covering terms and conditions for issue of Subordinated Bonds to qualify for inclusion as Lower Tier-II Capital, these Bonds shall be free of restrictive clauses and shall not redeemable at the initiative of the holder or without the consent of the Reserve Bank of India. Thus redemption of these Bonds shall be made only with the prior approval of the RBI. In case if the principal redemption date falls on a day which is not a Business Day (Business Day being a day on which Commercial Banks are open for business in Kolkata), then the payment due shall be made on the next Business Day together with additional interest for the intervening period. Effect of Holidays Should any of dates defined above or elsewhere in the Disclosure Document, excepting the Deemed Date of Allotment, fall on a Saturday, Sunday or a Public Holiday, the next working day shall be considered as the effective date(s). In case any Interest Payment Date(s) and/or the Date(s) of Redemption falls on a holiday, interest/ redemption will be paid on the next working day (i.e. a day on which scheduled commercial banks are open for business in the city of Kolkata). List of Beneficial Owners The Bank shall request the Depository to provide a list of Beneficial Owners as at the end of the Record Date. This shall be the list, which shall be considered for payment of interest or repayment of principal amount, as the case may be. Succession In the event of demise of the sole/first holder of the Bond(s) or the last survivor, in case of joint holders for the time being, the Bank will recognize the executor or administrator of the deceased Bondholder, or the holder of succession certificate or other legal representative as having title to the Bond(s). The Bank shall not be bound to recognize such executor or administrator, unless such executor or administrator obtains probate, letter of administration wherever it is necessary, or such holder is the holder of succession certificate or other legal representation, as the case may be, from a Court in India having jurisdiction over the matter. The Bank may, in its absolute discretion, where it thinks fit, dispense with production of probate or letter of administration or succession certificate or other legal representation, in order to recognize such holder as being entitled to the Bond(s) standing in the name of the deceased Bondholder on production of sufficient documentary proof or indemnity. Where a non-resident Indian becomes entitled to the Bond by way of succession, the following steps have to be complied: a. Documentary evidence to be submitted to the Legacy Cell of the RBI to the effect that the Bond was acquired by the NRI as part of the legacy left by the deceased holder. b. Proof that the NRI is an Indian National or is of Indian origin. Such holding by the NRI will be on a non-repatriation basis. Who Can Apply The following categories of investors may apply for the Bonds, subject to fulfilling their respective investment norms/ rules by submitting all the relevant documents alongwith the application form. 1. 2. 3. 4. 5. 6. 7. 8. 9. Scheduled Commercial Banks; Financial Institutions; Insurance Companies; Primary/ State/ District/ Central Co-operative Banks (subject to permission from RBI); Regional Rural Banks; Mutual Funds; Provident, Gratuity, Superannuation and Pension Funds; Companies, Bodies Corporate authorised to invest in Bonds; Trusts, Individuals, Association of Persons, Societies registered under the applicable laws in India which are duly authorised to invest in bonds.

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Application not to be made by 1. Hindu Undivided Family (neither by the name of the Karta); 2. Partnership Firms or their nominees; 3. Overseas Corporate Bodies (OCBs); 4. Foreign Institutional Investors (FIIs). Although above investors are eligible to apply however only those investors, who are individually addressed through direct communication by the Bank/ Arranger, are eligible to apply for the Bonds. No other person may apply. Hosting of Disclosure Document on the website of the NSE should not be construed as an offer to issue and the same has been hosted only as it is stipulated by SEBI. Investors should check about their eligibility before making any investment. The applications must be accompanied by certified true copies of (1) Memorandum and Articles of Association/ Constitution/ Bye-laws (2) Resolution authorising investment and containing operating instructions (3) Specimen signatures of authorised signatories and (4) Xerox copy of PAN Card. (5) Necessary forms for claiming exemption from deduction of tax at source on the interest income/ interest on application money, wherever applicable. Application under Power of Attorney or by Limited Companies In case of applications made under a Power of Attorney or by a Limited Company or a Body Corporate or Registered Society or Mutual Fund, and scientific and/or industrial research organisations or Trusts etc, the relevant Power of Attorney or the relevant resolution or authority to make the application, as the case may be, together with the certified true copy thereof along with the certified copy of the Memorandum and Articles of Association and/or Bye-Laws as the case may be must be attached to the Application Form or lodged for scrutiny separately with the photocopy of the Application Form, quoting the serial number of the Application Form at the Banks branch where the application has been submitted, or at the office of the Registrars to the Issue after submission of the Application Form to the bankers to the issue or any of the designated branches as mentioned on the reverse of the Application Form, failing which the applications are liable to be rejected. Such authority received by the Registrars to the Issue more than 10 days after closure of the subscription list may not be considered. Mode of Subscription/ How to Apply This being a Private Placement Offer, Investors who are established/ resident in India and who have been addressed through this communication directly, only are eligible to apply. All Application Forms, duly completed, together with cheque/ demand draft for the amount payable on application must be delivered before the closing date of the issue to the specified branches of Allahabad Bank named herein or to the Arranger to the Issue. Applications should be for a minimum of 1 Bond and in multiples of 1 Bond thereafter. All cheques/ demand drafts should be in favour of Allahabad Bank A/c - Subordinated Lower Tier II Bonds (Series IX) "and crossed Account Payee Only. The entire amount of Rs. 10 lakh (Rs. Ten Lakh only) per Bond is payable on application. Alternatively, investors can remit their application money by way of electronic transfer of funds through RTGS mechanism for credit in the account of Application Money for Allahabad Bank Subordinated Lower Tier II Bonds (Series IX) at Allahabad Bank, Fort Mumbai branch having IFSC Code No. ALLA0210182. Applications for the Bonds must be in the prescribed form (enclosed) and completed in BLOCK CAPITAL LETTERS in English and as per the instructions contained therein. Applications complete in all respects (along with all necessary documents as detailed in this Disclosure Document) must be submitted before the last date indicated in the issue time table or such extended time as decided by the Bank, at any of the designated collection centres, accompanied by the subscription amount by way of cheque(s)/ demand draft(s) drawn on any bank including a co-operative bank which is situated at and is a member of the Bankers clearing house located at a place where the application form is submitted. Outstation cheque(s)/ Bank draft(s) drawn on Bank(s) not participating in the clearing process at the designated clearing centres will not be accepted. Money orders/ postal orders will also not be accepted. The Bank assumes no responsibility for any applications/ cheques/ demand drafts lost in mail. No separate receipt will be issued for the application money. However, the Banks designated collection branches or Arranger receiving the duly completed Application Form will acknowledge receipt of the application by stamping and returning to the applicant the Acknowledgment Slip at the bottom of the each Application Form.

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As a matter of precaution against possible fraudulent encashment of interest warrants/ cheques due to loss/ misplacement, the applicant should furnish the full particulars of his or her bank account (i.e. Account Number, name of the bank and branch) at the appropriate place in the Application Form. Interest warrants will then be made out in favour of the bank for credit to his/ her account so specified and dispatched to the investors, who may deposit the same in the said bank. Right to Accept or Reject Applications The Bank reserves its full, unqualified and absolute right to accept or reject any application, in part or in full, without assigning any reason thereof. The applicants will be intimated about such rejection along with the refund warrant, together with interest on application money, if applicable, from the date of realization of the cheque(s)/ demand drafts(s) till one day prior to the date of refund. The application forms that are not complete in all respects are liable to be rejected and such applicant would not be paid any interest on the application money. Application would be liable to be rejected on one or more technical grounds, including but not restricted to: a. b. c. d. e. Number of bonds applied for is less than the minimum application size; Applications exceeding the issue size; Bank account details not given; Details for issue of bonds in electronic/ dematerialised form not given; PAN not mentioned in appropriate place. In case of applications under Power of Attorney by limited companies, corporate bodies, trusts, etc. relevant documents not submitted;

In the event, if any Bond(s) applied for is/ are not allotted in full, the excess application money of such Bonds will be refunded, as may be permitted. PAN Number All applicants should mention their Permanent Account Number allotted to them by Income Tax authorities at the appropriate place provided in the application form. Signatures Signatures should be made in English or in any other Indian Languages at specified place. Thumb impressions must be attested by an authorized official of a Bank or by a Magistrate/ Notary Public under his/her official seal. Nomination Facility As per the provisions of the Companies Act, 1956 under section 109A, only individuals applying as sole applicant/Joint Applicant can nominate a person, in the prescribed manner to whom his Bonds shall vest in the event of his death. Non individuals including holders of the Power of Attorney can not nominate. Bondholder not a Shareholder The bondholders will not be entitled to any of the rights and privileges available to the shareholders. If, however, any resolution affecting the rights attached to the Bonds is placed before the members of the Bank, such resolution will first be placed before the bondholders for their consideration. Modification of Rights The rights, privileges, terms and conditions attached to the Bonds may be varied, modified or abrogated with the consent, in writing, of those holders of the Bonds who hold at least three fourth of the outstanding amount of the Bonds or with the sanction accorded pursuant to a resolution passed at a meeting of the Bondholders, provided that nothing in such consent or resolution shall be operative against the Bank where such consent or resolution modifies or varies the terms and conditions of the Bonds, if the same are not acceptable to the Bank. Future Borrowings The Bank shall be entitled to borrow/ raise loans or avail of financial assistance in whatever form as also issue Bonds/ Debentures/ Notes/ other securities in any manner with ranking pari-passu or otherwise and to change its capital structure, including issue of shares of any class or redemption or reduction of any class of paid up capital, on such terms and conditions as the Bank may think appropriate, without the consent of, or intimation to, the Bondholder(s) or the Trustees in this connection. Bond/ Debenture Redemption Reserve The Government of India, Ministry of Company Affairs vide General Circular No. 9/2002 No.6/3/2001-CL.V dated April 18, 2002 has clarified that Banks need not create Debenture Redemption Reserve as specified under section 117C of the Companies Act, 1956. Notices All notices required to be given by the Bank or by the Trustees to the Bondholders shall be deemed as given, if such notices are sent by ordinary post/ courier to the original sole/ first allottees of the Bonds and/ or is published in one All India English daily newspaper and one regional language newspaper.

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All notices required to be given by the Bondholder(s), including notices referred to under Payment of Interest and Payment on Redemption shall be sent by registered post or by hand delivery to the Bank or to such persons at such address as may be notified by the Bank from time to time. Tax Benefits to the Bondholders of the Bank The holder(s) of the Bonds are advised to consider in their own case, the tax implications in respect of subscription to the Bonds after consulting their own tax advisor/ counsel. Disputes & Governing Law The Bonds are governed by and shall be construed in accordance with the existing and applicable laws of India. Any dispute arising thereof will be subject to the sole jurisdiction of courts of Kolkata. Compliance Officer Mr. A. B. Bhattacharjee General Manager (Finance & Accounts) Allahabad Bank Head Office, 2, Netaji Subhas Road Kolkata 700 001 Tel: (033) 22420899 Fax:.91-33-22107424 E-mail: gmfa@allahabadbank.co.in The investors can contact the Compliance Officer in case of any pre-issue/ post-issue related problems such as non-credit of letter(s) of allotment/ bond certificate(s) in the demat account, non-receipt of refund order(s), interest warrant(s)/ cheque(s) etc.

Registrar to the Issue

Maheshwari Datamatics Pvt. Ltd. R.O 6, Mangoe Lane (Surendra Mohan Ghosh Sarani) 2nd Floor, Kolkata-700 001 Tel No. (033) 2243-5809/5029 Fax No. 033-2248-4787 E-mail: mdpl@cal.vsnl.net.in Website: www.mdpl.in

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IX. CREDIT RATING & RATIONALE THEREOF Credit Analysis & Research Ltd. (CARE) has assigned a CARE AA+ (pronounced as Double A plus) rating for an amount of Rs.450.00 crore to the present Tier II Bonds to be issued by the Bank vide its letter dated July 24, 2009. Instruments with CARE AA rating are considered to offer high safety for timely servicing of debt obligation. Such instruments carry very low credit risk. The plus or minus sign indicate the relative position with in the band covered by rating symbol. A copy of rating letter from CARE is enclosed elsewhere in this Disclosure Document. CRISIL Ltd. (CRISIL) has assigned a AA+/Stable (pronounced as Double A Plus with stable outlook) rating for an amount of Rs. 450.00 crore to the present Tier-II Bonds to be issued by the Bank vide its letter no. MD/FSR/ALLHBAN/2009-10/691 dated July 24, 2009. This rating indicates high degree of safety with regard to timely payment of interest and principal on the instrument. A copy of rating letter from CRISIL is enclosed elsewhere in this Disclosure Document. Other than the credit ratings mentioned hereinabove, the Bank has not sought any other credit rating from any other credit rating agency (ies) for the Bonds offered for subscription under the terms of this Disclosure Document. The above ratings are not a recommendation to buy, sell or hold securities and investors should take their own decision. The ratings may be subject to revision or withdrawal at any time by the assigning rating agencies and each rating should be evaluated independently of any other rating. The ratings obtained are subject to revision at any point of time in future. The rating agencies have the right to suspend, withdraw the rating at any time on the basis of new information etc. X. NAME OF DEBENTURE TRUSTEE

In accordance with the provisions of Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 issued vide Circular No. LAD-NRO/GN/2008/13/127878 dated June 06, 2008, the Bank has appointed IDBI Trusteeship Services Ltd. to act as Trustees (Trustees) for and on behalf of the holder(s) of the Bonds. The address and contact details of the Trustees are as under:

IDBI Trusteeship Services Ltd. Registered Office Asian Building, Ground Floor 17, R Karmani Marg, Ballard Estate Mumbai - 400 001 Tel: (022) 40807000 Fax: 91-22-66311776/ 22625247 E-mail: itsl@idbitrustee.co.in A copy of letter from IDBI Trusteeship Services Ltd. conveying their consent to act as Trustee for the current issue of Bonds is enclosed elsewhere in this Disclosure Document. The Bank hereby undertakes that it shall sign a Trustee Agreement as per applicable provisions. The Trustee Agreement shall not contain any clause which has the effect of (i) limiting or extinguishing the obligations and liabilities of the Trustees or the Bank in relation to any rights or interests of the holder(s) of the Bonds, (ii) limiting or restricting or waiving the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992); Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 and circulars or guidelines issued by SEBI, (iii) indemnifying the Trustees or the Bank for loss or damage caused by their act of negligence or commission or omission. The Bondholder(s) shall, without further act or deed, be deemed to have irrevocably given their consent to the Trustees or any of their agents or authorized officials to do all such acts, deeds, matters and things in respect of or relating to the Bonds as the Trustees may in their absolute discretion deem necessary or require to be done in the interest of the holder(s) of the Bonds. Any payment made by the Bank to the Trustees on behalf of the Bondholder(s) shall discharge the Bank pro tanto to the Bondholder(s). The Trustees shall protect the interest of the Bondholders in the event of default by the Bank in regard to timely payment of interest and repayment of principal and shall take necessary action at the cost of the Bank. No Bondholder shall be entitled to proceed directly against the Bank unless the Trustees, having become so bound to proceed, fail to do so. In the event of Bank defaulting in payment of interest on Bonds or redemption thereof, any distribution of dividend by the Bank shall require approval of the Trustees.

28

Disclosure Document

XI. STOCK EXCHANGE WHERE SECURITIES ARE PROPOSED TO BE LISTED The Unsecured Redeemable Non-Convertible Subordinated Lower Tier II Bonds (Series IX) in the nature of Promissory Notes are proposed to be listed on the Wholesale Debt Market (WDM) Segment of the National Stock Exchange of India Ltd. (NSE). The Bank shall apply for in-principle approval from the NSE for listing of said Bonds on its Wholesale Debt Market (WDM) Segment. The Bank shall make an application to the NSE to list the Bonds to be issued and allotted under this Disclosure Document and complete all the formalities relating to listing of the Bonds within reasonable time. In connection with listing of Bonds with NSE, the Bank hereby undertakes that: (a) (b) (c) (d) It shall comply with conditions of listing of Bonds as may be specified in the Listing Agreement with NSE. Ratings obtained by the Bank shall be periodically reviewed by the credit rating agencies and any revision in the rating shall be promptly disclosed by the Bank to NSE. Any change in rating shall be promptly disseminated to the holder(s) of the Bonds in such manner as NSE may determine from time to time. The Bank, the Trustees and NSE shall disseminate all information and reports on Bonds including compliance reports filed by the Bank and the Trustees regarding the Bonds to the holder(s) of Bonds and the general public by placing them on their websites.

29

Disclosure Document

XII. DETAILS OF OTHER BORROWINGS (DETAILS DEBT SECURITIES ISSUED IN THE PAST, PARTICULARS OF DEBT SECURITIES ISSUED FOR CONSIDERATION OTHER THAN CASH OR AT A PREMIUM OR DISCOUNT OR IN PURSUANCE OF AN OPTION, HIGHEST TEN HOLDERS OF EACH CLASS OR KIND OF SECURITIES, DEBT EQUITY RATIO) 1. PRIVATE PLACEMENT OF BONDS

The Bank has raised capital by way of private placement of Unsecured Subordinated Bonds in the nature of Promissory Notes to augment capital adequacy as under: A. LOWER TIER II BONDS Particulars Deemed Date of Allotment

Tenure (in months)

Credit Rating

Interest Rate (% p.a., annually) 12.30

Date of Redemption

Subordinated Tier II Bonds Series I* Subordinated Tier II Bonds Series II* Subordinated Tier II Bonds Series III Subordinated Tier II Bonds Series IV Subordinated Tier II Bonds Series V Subordinated Tier II Bonds Series VI Subordinated Tier II Bonds Series VII Subordinated Tier II Bonds Series VIII

16.12.1999

88

AA(ind) by FITCH AA(ind) by FITCH AA(ind) by FITCH AA+ by CARE & AA(ind) by FITCH AA+ by CARE & AA/Stable by CRISIL AA+ by CARE & AA/Stable by CRISIL AA+ by CARE & AA/Stable by CRISIL AA+ by CARE & AA/Stable by CRISIL TOTAL

15.04.2007

Issue Amount (Rs. In crores) 125.00

15.10.2001

66

9.80

14.04.2007

95.00

31.03.2003

85

7.00

30.04.2010

100.00

31.03.2004

99

5.90

30.06.2012

200.00

13.03.2006

120

8.00 semi annually 8.85

12.03.2016

500.00

29.09.2006

120

29.09.2016

561.90

25.09.2007

120

10.00

25.09.2017

500.00

26.03.2009

120

9.23

26.03.2019

400.00

2481.90

* redeemed on due dates. B. UPPER TIER II BONDS Issue Series Deemed Date of Allotment Subordinated Upper Tier II Bonds Series I 19.03.2009

Tenure (in months)

Credit Rating

Interest Rate

Date of

Issue (Rs. In crores) 500.00

(% p.a., annually) Redemption Amount

AA/Stable by 9.28 19.03.2024 CRISIL & CARE AA by CARE TOTAL 500.00 * Call Option at the end of 10th year with step up coupon option of 0.50% after the end of 10 year if call option is not exercised. C. INNOVATIVE PERPETUAL DEBT INSTRUMENTS (IPDI) TIER-I BONDS Particulars Date of Outstanding Interest Credit Rating Tenure Call Option Allotment Balance Rate Due Date (Rs. in crs.) (% p.a.) Subordinated 30.03.2009 150.00 9.20 AA/Stable by Perpetual * 30.03.2019 Perpetual CRISIL & CARE & every year Bonds Series I AA by CARE thereafter TOTAL 150.00 * Call Option at the end of 10th year with step up coupon option of 0.50% after the end of 10 year if call option is not exercised.

180*

30

Disclosure Document

2.

OTHER BORROWINGS (as on March 31, 2009) Amount outstanding 108.26 6514.90 22774.39 1056.31 54517.93 937.04 85908.83 Interest Rate Nil Nil 3.5% 3.25% to 8.75% 3.25% to 11.50% 0.30% to 8.5% (Rs in crores) Repayment Date/ Schedule Withdrawable on demand Withdrawable on demand Withdrawable on demand Withdrawable on demand Withdrawable on demand Withdrawable on demand

Particulars Demand Deposits from Banks Demand Deposits from Others Saving Bank Deposits Term Deposits from Banks Term Deposits from Others Borrowings from Other Institutions and Agencies TOTAL 3. DEBT EQUITY RATIO

Particulars

Pre-Issue (as on March 31, 2009)

(Rs. in crores) Post Issue of Subordinated Lower Tier II Bonds (Series IX) of Rs. 450 crore * 3361.90 3361.90

LOAN FUNDS Unsecured Bonds TOTAL SHAREHOLDERS FUNDS Equity Share Capital Reserves & Surplus (excluding Revaluation Reserve) TOTAL

2911.90 2911.90

446.70 5405.25 5851.95

446.70 5405.25 5851.95 0.57

Long Term Debt/ Equity Ratio 0.49 * after adding the proposed bonds of Rs. 450 crores to the figures of March 31, 2009. 4. HIGHEST 10 HOLDERS OF EACH CLASS AND KIND OF SECURITIES

A. TOP 10 EQUITY SHAREHOLDERS (as on June 30, 2009) Sr. No. Name of Shareholder Address No. of Shares Held % Shareholding 1. President of India Government of India, Deptt. of 246700000 55.23 Financial services, Jeevan Deep Building, Parliament Street, New Delhi - 110001 2. Life Insurance Investment Department 51970523 11.63 Corporation of India 6th Floor , West Wing, Central Office, Yogakshema , Jeevan Beema Marg, Mumbai- 400021 3. Citigroup Global Citi Bank NA, 77 Ramnord 10425223 2.33 Markets Mauritius Pvt. House, Dr. A B Road, Worli, Ltd. Mumbai- 400018 4. Swiss Finance HSBC Securities Services, 2nd 9901318 2.22 Corporation Floor : SHIV, Plot No. 139-140, (Mauritius) Western Exp Highway, Sahar Road Junction, Vile, Parle-E, Mumbai- 400057 5. Sanford C Bernstein Citi Bank NA, 77 Ramnord 4386600 0.98 and Co. Delaware House, Dr. A B Road, Worli, Mumbai- 400018 6. FIL Trustee Company C/O Standard Chartered Bank 3350075 0.75 Pvt. Ltd. Securities Services, 23-25 M.G. Road, Fort, Mumbai - 400001 7 Goldman Sach D B House, Hazarimal Somani 2649625 0.59 Investment ( Marg, Fort, Post Box No. 1142, Mauritious) Mumbai-400001 8 The State Teachers DB House, Hazarimal Somani 2605900 0.58 Retirement System Marg, Fort, Post Box 1142, Mumbai - 400001

31

Disclosure Document

ACM Bernstein Value Investment-EM

10

DB House, Hazarimal Somani Marg, Fort, Post Box 1142, Mumbai - 400001 Bajaj Allianz Life DB House, Hazarimal Somani Insurance Company Marg, Fort, Post Box 1142, Ltd. Mumbai - 400001 TOTAL

2110174

0.47

2061278

0.46

336160716

75.24

B. TOP 10 HOLDERS OF SUBORDINATED TIER II BONDS (SERIES III) (as on March 31, 2009) Sr. No. Name of Bondholder Address No. of Bonds Held % Bondholding 1. Bank of Maharashtra Treasury & International 80 8.00 Banking, 2nd Floor, 23, Maker Chamber III, Nariman Point, Mumbai - 400021 2. Allahabad Bank 2, N S Road, Kolkata - 700001 60 6.00 Employees Gratuity Fund 3. Allahabad Bank 2, N S Road, Kolkata - 700001 55 5.50 (Employees) Pension Fund 4. Coal Mines Provident C/O ICICI Securities Peimary 27 2.70 Fund Dealership Limited, ICICI Centre, H T Parekh Marg, Churchgate, Mumbai - 400020 5. National Insurance Investment Department, Everest 20 2.00 Company Ltd. House, 4th Floor, 46, C J. N. Road, Kolkata- 700071 6. Central Bank of India Treasury Department, 20 2.00 Chandramukhi Building, Nariman Point, Mumbai- 400021 7. Bank of India Specialised Intregated treasury 20 2.00 Branch, Kalpataru Heritage Building, 6th Floor, Nanok Motwane Marg, Mumbai-400023 8. Dena Bank Sharda Bhawan, 1st Floor, Near 20 2.00 Employees Pension Mithibhai College, V M Marg, Fund Juhu Vile Parle, Mumbai- 400056 9. Andhra Bank Head Office, Dr, Pattabhai 20 2.00 Employees Pension Bhawan, Saifabad, Fund Hyderabad- 500004 10. Oriental Bank of F-14-15, Shivam House, 12 1.20 Commerce Employees Connaught Place, Provident Fund Trust New Delhi- 110001 TOTAL 334 33.40 C. TOP 10 HOLDERS OF SUBORDINATED TIER II BONDS (SERIES-IV) (as on March 31, 2009) Sr. No. Name of Bondholder Address No. of Bonds Held % Bondholding 1. Life Insurance Investment Department 1750 87.50 Corporation of India 6th Floor , West Wing, Central Office, Yogakshema , Jeevan Beema Marg, Mumbai- 400021 2. Central Bank of India Treasury Department, 50 2.50 Chandramukhi Building, Nariman Point, Mumbai- 400021 3. Birla Sun Life Deutche Bank AG 50 2.50 Insurance Company House, Hazarimal Somani Marg. Ltd Sterling Theatre, Fort, Mumbai400001 4. Lucknow Kshetriya Eye Hispital Road, Sitapur 40 2.00 Gramin Bank 261001, U.P. 5. Corporation Bank General Account, Investment 33 1.65 Division, 15 Mittal Chambers 32

Disclosure Document

6.

American Express ( India) Pvt. Ltd. Employees Provident Fund Trust Hudco Employees CPF Trust Coal Mines Provident Fund

A-37, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi- 110044 Hudco Bhawan, India Habitat Centre, Lodhi Road, Delhi110003 C/o ICICI Securities Primary Dealership Limited, ICICI Centre, H T Parekh Marg, Churchgate, Mumbai- 400020 Kapas Bhawan, Plot No. 3A, Sector 10, CBO- Belapur, Navi Mumbai- 400614 Kapas Bhawan, Plot No. 3A, Sector 10, CBO- Belapur, Navi Mumbai- 400614

18

0.90

18

0.90

7.

10

0.50

9.

10.

The Cotton Corporation of India Ltd. Employees Gratuity Fund The Cotton Corporation of India Ltd. Employees Employees Contributory Superannuation Fund TOTAL

0.35

0.30

1982

99.1

D. TOP 10 HOLDERS OF SUBORDINATED TIER II BONDS (SERIES-V) (as on March 31, 2009) Sr. No. Name of Bondholder Address No. of Bonds Held % Bondholding 1. Sahara India Financial 25-28 Atlanta, Nariman Point, 2249 44.98 Corporation Ltd Mumbai-400021 2. Central Board of State Bank of India, EPFO 1900 38.00 Trustees Employees Securities Services Branch, 2nd Provident Fund Floor, Mumbai Main Branch, Mumbai Samachar Marg, Mumbai- 400023 3. Coal Mines Provident C/O ICICI Securities Peimary 428 8.56 Fund Dealership Limited, ICICI Centre, H T Parekh Marg, Churchgate, Mumbai- 400020 4. Punjab National Bank Punjab National Bank, 3rd Floor, 250 5.00 Employees Pension Rajendra Bhawan, Fund Rajendra Place, New Delhi-110008 5. Indian Overseas Bank 10B, Employees Pension Fund, 50 1.00 Employees Pension 762, Anna Salai, Central Office, Fund Chennai- 600002 6. Indian Overseas Bank 10B, Employees Pension Fund, 50 1.00 Staff Provident Fund 762, Anna Salai, Central Office, Chennai- 600002 7. Trustees of IDBI C/O IDBI Capital Market 37 0.74 Pension Fund Services Ltd. 5th Floor, Mafatlal Centre, Nariman Point, Mumbai- 400021 8. Coal Mines Pension State Bank of India, Securities 35 0.70 Fund Services Branch, 2nd Floor, Mumbai Main Branch, Mumbai Samachar Marg, Mumbai- 400023 9. Sahara India Sahara India Bhawan, 1, 1 0.02 Employees Kapoorthala Complex, Contributory Lucknow- 226024 Provident Fund Trust TOTAL 5000 100

33

Disclosure Document

E. TOP 10 HOLDERS OF SUBORDINATED TIER II BONDS (SERIES-VI) (as on March 31, 2009) Sr. No. Name of Bondholder Address No. of Bonds Held % Bondholding 1. Life Insurance Investment Department 3000 53.39 Corporation of India 6th Floor , West Wing, Central Office, Yogakshema , Jeevan Beema Marg, Mumbai- 400021 2. Bank of Baroda Specialized Integrated Treasury 250 4.45 Branch, Kalpataru Heritage Building, 6th Floor, Nanik Motwane Marg , Mumbai- 400023 3. Syndicate Bank FIM Department, Maker Tower E 200 3.55 2nd Floor, Cuffe Parade, Coloba, Mumbai- 400005 4. Punjab National Bank Deutche Bank A G, DB House, 200 3.55 Hazarimal Somani Marg, Next to Sterling Theatre, Fort, Mumbai- 400001 5 Union Bank of India C/O ILFS, ILFS House, Flat No. 150 2.67 14, Raheja Vihar, Chandivali, Andheri ( E), Mumbai- 400072 6 Canara Bank- Mumbai F I Section. Branch, 150 2.67 1st Floor, Verma Chambers, Homji Street, Fort, Mumbai- 400001 7. Bank of Baroda Baroda House, 4th Floor, 100 1.78 Provident Fund Trust Mandvi, Batroda- 390006 8 Bank of Baroda Baroda House, 4th Floor, 100 1.78 Employees Pension Mandvi, Batroda- 390006 Fund 9 Andhra Bank Funds Forex Department, 82-83, 100 1.78 Makers Towers, 8 F Block, Cuffe Parade, Mumbai- 400005 10 Coal Mines Provident C/O ICICI Securities Peimary 100 1.78 Fund Dealership Limited, ICICI Centre, H T Parekh Marg, Churchgate, Mumbai- 400020 TOTAL 4350 77.40 F. TOP 10 HOLDERS OF SUBORDINATED TIER II BONDS (SERIES-VII) (as on March 31, 2009) Sr. No. Name of Bondholder Address No. of Bonds Held % Bondholding 1. Coal Mines Provident C/o ICICI Securities Primary 575 11.50 Fund Dealership Limited, ICICI Centre, H T Parekh Marg, Churchgate, Mumbai- 400020 2 Indian Provident Fund 4 and 6 Curribhoy Road, Ballard 450 9.00 of Bharat Petroleum Estate, Corporation Ltd. Mumbai- 400001 3 The Provident Fund Indian Oil Bhawan, G-9, Ali 365 7.30 for the Employees of Yavar Jung Marg, Bandra India Oil Corporation ( East), Mumbai- 400051 Ltd. ( Marketing Division) 4 Union Bank of India C/O ILFS, ILFS House, Flat No. 300 6.00 14, Raheja Vihar, Chandivali, Andheri ( E), Mumbai- 400072 5 Food Corporation of Khadya Sadan, 13th Floor, 16267 5.34 India CPF Trust 20, Barakhamba Lane, New Delhi- 110001 250 5.00 6 Oriental Bank of Treasury Department, st Commerce A-30 33A Block, 1 Floor, Cannaught Place, New Delhi- 110001 34

Disclosure Document

United India Insurance Company ( Employees) Pension Fund Powergrid Employee Provident Fund Trust

10

C/O United India Insurance Company Ltd. , Head Office, 24 White Road, Chennai- 600014 Saudamani, Plot No. 2, Sector- 29, Near IFFCO Chowk , Gurgaon, Harayana- 122001 The J & K Bank Ltd Investment Department ( Debt), 5th Floor, Merchant Chambers, 41 New Marine Lines, Mumbai- 400020 Punjab National Bank Deutche Bank A G, DB House, Hazarimal Somani Marg, Next to Sterling Theatre, Fort, Mumbai- 400001 TOTAL

200

4.00

175

3.50

150

3.00

100

2.00

2832

56.64

G. TOP 10 HOLDERS OF SUBORDINATED TIER II BONDS (SERIES-VIII) (as on March 31, 2009) Sr. No. Name of Bondholder Address No. of Bonds Held % Bondholding 1. CBT EPF EPS A/C HSBC AMC Ltd HDFC Bank Ltd, Custody Services, Trade World, A Wing Ground Floor, Kamala Mills Compound, S.B. Marg. Lower Parel, Mumbai- Pin-400013 TOTAL 4000 100.00

4000

100.00

H. TOP 10 HOLDERS OF SUBORDINATED UPPER TIER II BONDS (SERIES-I) (as on March 31, 2009) Sr. No. Name of Bondholder Address No. of Bonds Held % Bondholding 1. Life Insurance Central Office, Investment 5000 100.00 Corporation of India Department, Yogakshema, Jeevan Bima Marg. Mumbai400021 TOTAL 5000 100.00 I. TOP 10 HOLDERS OF SUBORDINATED PERPETUAL BONDS (SERIES-I) (as on March 31, 2009) Sr. No. Name of Bondholder Address No. of Bonds held % Bondholding 1 Bank of India Treasury Branch, Star House, 300 20.00 C-5, G-Block, Bandra Kurla Complex, Mumbai-400051 2 Bank of Baroda Treasury Branch, Kalpataru Heritage Building, 6th Floor, Nanik Motwane Marg, Fort, Mumbai-400023 Treasury & Investment Deptt. 7th Floor, Maker Chamber - III, Nariman Point- Mumbai400021 17th Floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai- 400005 82-83, Maker Towers, F-8, Cuffe Parade, Mumbai- 400005 Integrated Treasury Branch, 5th Floor, Chandramukhi Building, Nariman Point, Mumbai-400021 23, Maker Chamber 3, 2nd Floor, Nariman Point, Mumbai400021 200 13.33

Canara Bank

150

10.00

IDBI Bank Ltd

100

6.67

Andhra Bank

100

6.67

Central Bank of India

100

6.67

Bank of Maharashtra

100

6.67

35

Disclosure Document

Oriental Bank of Commerce

Dena Bank

10

Yes Bank Ltd

1st Floor, Treasury Department, a/30,-33, ABlock, Cannaught Place, Delhi110001 Treasury 4th Floor, Dena Corporation Centre, C-10, G Block, Bandra Kurla Complex, Bandra ( East) Mumbai400051 Tiecicon House, Dr. E Moses Road, Mahalaxmi, Mumbai400011 TOTAL

100

6.67

50

3.33

50

3.33

1250

83.34

5.

PARTICULARS OF DEBT SECURITIES ISSUED (I) FOR CONSIDERATION OTHER THAN CASH, WHETHER IN WHOLE OR PART, (II) AT A PREMIUM OR DISCOUNT, OR (III) IN PURSUANCE OF AN OPTION

The Bank hereby confirms that it has not issued any debt securities or agreed to issue any debt securities for consideration other than cash, whether in whole or in part, at a premium or discount or in pursuance of an option since inception.

36

Disclosure Document

XIII. SERVICING BEHAVIOR ON EXISTING DEBT SECURITIES AND OTHER BORROWINGS The Bank hereby confirms that: a) The main constituents of Banks borrowings have been in the form of borrowings from RBI, inter-bank borrowings, call money borrowings, term money borrowings, savings bank deposits, current account deposits, term deposits, subordinated bonds, certificate of deposits etc. The Bank has been servicing all its principal and interest liabilities on time and there has been no instance of delay or default since inception. The Bank has neither defaulted in repayment/ redemption of any of its borrowings nor affected any kind of roll over against any of its borrowings in the past.

b)

c)

XIV.

UNDERTAKING REGARDING COMMON FORM OF TRANSFER

The Bonds shall be transferred subject to and in accordance with the rules/ procedures as prescribed by the NSDL/ CDSL/ Depository Participant of the transferor/ transferee and any other applicable laws and rules notified in respect thereof. The normal procedure followed for transfer of securities held in dematerialized form shall be followed for transfer of these Bonds held in electronic form. The seller should give delivery instructions containing details of the buyers DP account to his depository participant. The transferee(s) should ensure that the transfer formalities are completed prior to the Record Date. In the absence of the same, interest will be paid/ redemption will be made to the person, whose name appears in the records of the Depository. In such cases, claims, if any, by the transferee(s) would need to be settled with the transferor(s) and not with the Bank. The Bank undertakes that it shall use a common form/ procedure for transfer of Bonds issued under terms of this Disclosure Document.

XV.

MATERIAL EVENT, DEVELOPMENT OR CHANGE AT THE TIME OF ISSUE

The Bank hereby declares that there has been no material event, development or change at the time of issue which may affect the issue or the investors decision to invest/ continue to invest in the debt securities of the Bank.

XVI.

PERMISSION/ CONSENT FROM PRIOR CREDITORS

The Bank hereby confirms that it is entitled to raise money through current issue of Bonds without the consent/ permission/ approval from the Bondholders/ Trustees/ Lenders/ other creditors of the Bank. Further the Bonds proposed to be issued under the terms of this Disclosure Document being unsecured and subordinated in nature, there is no requirement for obtaining permission/ consent from the prior creditors for creating second or pari passu charge in favor of Trustees.

XVII. MATERIAL CONTRACTS & AGREEMENTS INVOLVING FINANCIAL OBLIGATIONS OF THE ISSUER By very nature of its business, the Bank is involved in a large number of transactions involving financial obligations and therefore it may not be possible to furnish details of all material contracts and agreements involving financial obligations of the Bank. However, the contracts referred to in Para A below (not being contracts entered into in the ordinary course of the business carried on by the Bank) which are or may be deemed to be material have been entered into by the Bank. Copies of these contracts together with the copies of documents referred to in Para B may be inspected at the Head Office of the Bank between 10.00 a.m. and 2.00 p.m. on any working day until the issue closing date. A. a. b. B. a. MATERIAL CONTRACTS Copy of letter appointing Registrar and Transfer Agents (RTA) and copy of MOU entered into between the Bank and the RTA. Copy of letter appointing IDBI Trusteeship Services Ltd. (ITSL) as Trustee to the Bondholders. DOCUMENTS Board Resolution dated 15-06-2009 authorizing issue of Bonds offered under terms of this Disclosure Document.

37

Disclosure Document

b. c. d. e. f.

Letter of consent from IDBI Trusteeship Services Ltd. for acting as Trustee for and on behalf of the holder(s) of the Bonds. Letter of consent from Maheshwari Datamatics Pvt. Ltd. for acting as Registrar to the Issue. Copy of application made to the NSE for grant of in-principle approval for listing of Bonds. Letter from CRISIL conveying the credit rating for the Bonds of the Bank and the rating rationale pertaining thereto. Letter from CARE conveying the credit rating for the Bonds of the Bank and the rating rationale pertaining thereto.

VIII.

DECLARATION

It is hereby declared that this Disclosure Document contains full disclosures in accordance with Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 issued vide Circular No. LAD-NRO/GN/2008/13/127878 dated June 06, 2008. The Bank also confirms that this Disclosure Document does not omit disclosure of any material fact which may make the statements made therein, in light of the circumstances under which they are made, misleading. The Disclosure Document also does not contain any false or misleading statement. The Bank accepts no responsibility for the statement made otherwise than in the Disclosure Document or in any other material issued by or at the instance of the Bank and that any one placing reliance on any other source of information would be doing so at his own risk. Signed by Mr. K R Kamath, Chairman and Managing Director, pursuant to the authority granted by the Board of Directors of the Bank in their meeting held on 15-06-2009.

for ALLAHABAD BANK

(K R. Kamath) Chairman and Managing Director Date: July 24, 2009 Place: Kolkata (West Bengal)

38

ADDRESSES OF COLLECTING BRANCHES OF THE BANK

Centre Kolkata

New Delhi Mumbai Chennai

Branch Address 14 India Exchange Place Kolkata 700001 17 Parliament Street New Delhi 37, Mumbai Samachar Marg 40/41, Mount Road, Chennai, Tamilnadu600002

STD code 033

Telephone No. 22308992, 22305028 23368007, 23361286 22655739, 22810361 28585641, 28516194

FAX No. 22303015

011 022 044

23363694 22661935 28525535

ALLAHABAD BANK
(A Government of India Undertaking)

Head Office: 2, Netaji Subhas Road, Kolkata 700 001 Tel.: (033) 22420899, 22420878, 22420375; Fax: (033) 22107424 APPLICATION FORM FOR UNSECURED REDEEMABLE NON-CONVERTIBLE SUBORDINATED LOWER TIER II BONDS (SERIES IX)
To, Allahabad Bank, Head Office: 2, Netaji Subhas Road, Kolkata 700 001 Dear Sir, Having read, understood and agreed to the contents and terms and conditions of Allahabad Banks Disclosure Document dated July 24, 2009, i/we hereby apply for allotment to me/us, of the under mentioned Bonds (hereinafter referred to as Bonds), out of the Private Placement Issue. I/We irrevocably give my/ our authority and consent to IDBI Trusteeship Services Ltd., to act as my/our Trustees and for doing such acts and signing such documents as may be necessary to carry out their duties in the said capacity. The amount payable on application as shown below is remitted herewith. I/We note that the Bank is entitled in its sole and absolute discretion to accept or reject this application in whole or in part without assigning any reason whatsoever. For Office Use Only Date of Receipt of Application / 0 7 / 0 9 Date of Clearance of Cheque / 0 7 / 0

I/We confirm that I/we have not received and will not receive any commission or brokerage or any other incentive in any form, directly or indirectly, for subscribing to the Issue. APPLICANTS DETAILS SOLE/FIRST APPLICANTS NAME IN FULL (PLEASE READ CAREFULLY THE INSTRUCTIONS ON THE NEXT PAGE BEFORE FILLING UP THIS FORM) SIGNATORY/AUTHORISED SIGNATORY

SECOND APPLICANTS NAME

THIRD APPLICANTS NAME

ADDRESS (Do not repeat name) (Post Box No. alone is not sufficient)

TEL SOLE/ FIRST APPLICANT CATEGORY (Tick one) Scheduled Commercial Bank Financial Institution Insurance Company Primary/ State/ District/ Central Co-operative Bank Regional Rural Bank Mutual Fund Company/ Body Corporate Provident/ Gratuity/ Superannuation Fund Others (please specify) PAYMENT DETAILS (Rs. in figures) Total Amount Payable (Rs. in words)

FAX INVESTMENT DETAILS Face Value/ Issue Price Minimum Application Tenure Coupon Rate Interest Payment Amount payable per Bond (i) No. of Bonds Applied For (ii) Total Amount Payable (Rs.) (in fig) (i) x (ii)

PIN CODE

Rs. 10,00,000/- (Rupees Ten Lacs Only) per Bond 1 Bond and in multiples of 1 Bond thereafter 10 Years 8.45% p.a. Annual Rs. 10,00,000/-

Cheque/ Demand Draft No. Dated Drawn on (Name of the Bank) Branch

Applicants can alternatively remit their application money by way of RTGS credit in the account Tier II Bonds (Series IX) Fort Mumbai branch having IFSC Code No. ALLA0210182. SOLE/ FIRST APPLICANTS BANK DETAILS (Ref. Instructions) Bank Name Branch City Type of Account Savings Current Others

of

Application Money for Allahabad Bank Subordinated Lower

INCOME TAX DETAILS (Ref. Instructions) Sole/ First Applicant P.A,N NO.

Second Applicant

Third Applicant

TO BE FILLED IN ONLY IF THE APPLICANT IS AN INSTITUTION Name of the Authorised Signatory(ies) Designation 1. 1. 2. 2. 3. 3. 4. 4. DETAILS FOR ISSUE OF BONDS IN ELECTRONIC/ DEMATERIALISED FORM Depository Name (please tick) NSDL CDSL Depository Participant Name DP-ID Number Client-ID Beneficiary Account Number Name of the Applicant

Signature

APPLICANTS SIGNATURE(S) Sole/ First Applicant

Second Applicant Third Applicant

-------------*-------------*-----------*-----------*-------------*------------*-----------*-----------(Tear Here)-----------*-------------*-------------*-----------*-----------*-----------* -------------*------------

ACKNOWLEDGEMENT SLIP

ALLAHABAD BANK
(To be filled in by the Applicant) Received from_________________________________________________________________ Address______________________________________________________________________ an application for ___________ Bonds vide Cheque/ Demand Draft No. ___________________ Drawn on_____________________________________________________________________ Dated____________ amounting to Rs. _____________________________________________. Note: Cheque(s) are subject to realisation.
All future communication in connection with this application should be addressed to the Registrars: M/s. Maheshwari Datamatics Pvt. Ltd. (Address: R.O 6, Mangoe Lane, (Surendra Mohan Ghosh Sarani), 2nd Floor, Kolkata-700 001; Tel No. (033) 22435809/5029; Fax No. (033) 22484787) quoting full name of Sole/ First Applicant, Application No., Number of Bonds applied for, Date, Bank and Branch where the application was submitted and Cheque/ Demand Draft Number and Issuing Bank.

IMPORTANT INSTRUCTIONS

1. Application forms must be completed in BLOCK CAPITAL LETTERS IN ENGLISH. A blank space must be left between two or more parts of the name.

Signatures should be made in English or in any other Indian languages. Thumb impressions must be attested by an authorised official of a Bank or by a Magistrate/ Notary Public under his/ her official seal.

2. Application forms duly completed in all respect must be submitted to the respective Collecting Banker. Cheque(s)/ Demand Draft(s) should be drawn in favour of Allahabad Bank A/c - Subordinated Lowe Tier II Bonds (Series IX) "and crossed Account Payee Only. Cheque(s)/ demand draft(s) may be drawn on any bank including a co-operative bank, which is a member or a sub-member of the Bankers Clearing House located at Chennai, Bangalore, Hyderabad, Ahmedabad, Kolkata, New Delhi or Mumbai.

3. Applicants can alternatively remit the application money by way of electronic transfer of funds through RTGS mechanism for credit in the account of Application Money for Allahabad Bank Subordinated Lower Tier II Bonds (Series IX) Fort Mumbai branch having IFSC Code No. ALLA0210182

4.

Outstation cheques, cash, money orders, postal orders and stockinvest shall not be accepted.

5.

As a matter of precaution against possible fraudulent encashment of interest warrants due to loss/misplacement, applicants are advised to mention the full particulars of their bank details, as specified in the Application Form. Interest warrants will then be issued in favour of the bondholders with mentioned of the bank details as mentioned in the application form. In case the full particulars are not given, cheques will be issued in the name of the applicant at his/ her risk.

6.

Receipt of applications will be acknowledged by the respective Collecting Branch of the Bank in the Acknowledgment Slip, appearing below the Application Form. No separate receipt will be issued.

7.

All applicants should mention their Permanent Account Number allotted to them by income tax authorities, promptly at the appropriate place in the application form. The copy of the PAN card must be attached along with the application form.

8.

The application would be accepted as per the terms of the Scheme outlined in the Disclosure Document for Private Placement dated July 24, 2009.