Allahabad Bank

APRIL 2010 TO MARCH 2011

The Board of Directors has pleasure in presenting the Directors’ Report along withthe audited Statement of Accounts of the Bank for the year ended 31^st March2011.

MACRO ECONOMIC ENVIRONMENT

FY 2010-11 has been a complex and challenging year due to absorption and management of‘after effects’ of global financial crisis. The crisis had its beginnings in thedeveloped world’s subprime sector & broader financial markets and this contagionspread to the rest of the world economy, turning into a full-blown global economic crisis.Indian economy also became affected to the extent it was coupled with global economy boththrough trade and exposure to international financial markets.

GLOBAL DEVELOPMENT

As per IMF, the World real GDP growth is expected to be about 4.5% in 2011 downmodestly from 5% in 2010. Real GDP growth in advanced economies and emerging &developing economies is expected to be at about 2.5% and 6.5% respectively in 2011.Thestrong macroeconomic fundamentals in emerging market and consequent boost in demand is anindication that recovery is complete and expansion is under way.

In advanced economies, headline inflation is projected to be below 2% in 2011 but inemerging and developing economies, inflation pressure is mounting and forecast seesheadline inflation at close to 7% in 2011.

There was recovery in the global economy during last year but at the same timeunemployment increased in developed world. Emerging market economies had differentchallenges-first fiscal consolidation and to maintain output at potential despite higherinterest rates to counter inflation & second, capital controls to avoid systemic riskstemming from volatile capital inflows. High inflationary expectation and traces of anearly sign of overheating of the economy were found in emerging economies.

DOMESTIC DEVELOPMENT

Indian economy has performed relatively better in FY 2010-11 compared to other emergingeconomies. Robust growth and steady fiscal consolidation have been the hallmark of theIndian economy in FY 2010-11.Economic growth has been broad based with a rebound in theagriculture sector. The Gross Domestic Product (GDP) of India has grown by 8.6% withagriculture growth at 5.4%, industry at 8.1% and services at 9.6% during the Year 2010-11.Our economy has shown remarkable resilience to both external and domestic shocks andsuccessfully withstood the ripple effects of the global turmoil.

The high growth in the savings and investment has been the growth enabler in recentyears. Gross Domestic Saving (GDS), as percentage of GDP at current market prices has been33.7% in 2009-10 as compared to 32.2% in 2008-09. The growth in household saving rate hasbeen 23.5% in 2009-10. The rate of Gross Capital Formation (Investment) was 36.5% in2009-10 as against 34.5% in 2008-09.

Inflationary expectation, higher commodity prices and volatility in global commoditymarkets have been a cause of concern. The year 2010-11 started with a double digitheadline inflation of 11.0% in April 2010. After remaining in double digits from April toJuly 2010, it came down to 7.5% in November 2010. But the trend reversed with inflationmoving up again to 9.41% in December’2010, 8.23 % in Jan’2011 & 8.31 % inFeb’2011. In spite of spectacular growth in Agriculture this year, inflation remainedat elevated level due to high food prices. The inflation based on WPI continued at higherlevel of 8.98% for March 2011. The spurt in inflationary expectation could be attributedprimarily to supply constraints.

So far external sector of the economy is concerned, during 2010-11 the imports havebeen slow but exports have increased in view of global recovery and growth in trade withAsian countries as a result of which trade deficit is set to narrow. Exports for the yearending March 2011 touched US$ 245.9 billion registering a growth of 37.5% exceedingexpectations. Imports for the same period stood at US$ 350.3 billion; and resultantly thetrade deficit figure has come down to US$ 104.4 billion for March 2011.

BANKING & FINANCIAL SECTOR DEVELOPMENT

There has been a gradual shift in the stance of policy on interest rate. In 2010-11,the monetary policy stance has been one of hiking the policy rates to tame inflation..Banks have also revised their deposit & lending rates on account of successive ratehike by RBI and prevailing tight liquidity conditions in the system.

Indian financial markets, particularly the equity and foreign exchange markets wereimpacted by the global developments. Banks resorted to Certificate of Deposits for theirresource mobilization which saw both increase in volumes and rates. Issuances of CPs alsoincreased as companies accessed alternative avenues for funds, given the tight liquidityconditions.

Indian Banks continued to play a dominant role in providing credit to economy. Banksaccounted for nearly 60% of total flow of financial resources to the commercial sector. Ona year-on-year basis, bank credit grew by 21.4% to Rs.3938659 crore as on March 25, 2011,which exceeded RBI’s projected non-food credit growth target of 20% for FY 2011.Aggregate deposits of SCBs grew by 15.8% on year-on-year basis thereby reaching a level ofRs.5204703 crore as on March 25, 2011.

OUTLOOK FOR 2012

The economic activities in the next FY 2011-12 is expected to sustain on more or lesssame level on account of multiple reasons such as successive interest rate hikes sinceApril 2010 and rising inflationary pressures since December 2010 in the economy. We expectthat GDP growth rate would be in the range of 8.5-8.75% in FY 2011-12. Banks wouldcontinue to face pressure on their net interest margin on account of rise in interestrates in 2011-12. It is expected that deposits in the year 2011-12 will grow at a higherrate than in the financial year 2010-11. Deposit growth of around 17% and credit growth ofaround 20.0% are expected in 2011-12.

OPERATING RESULTS

Bank’s performance in key business parameters is presented below.

(Rs. in crore)

Performance Highlights

> Total Business of the Bank increased to Rs. 2,26,458 crore as against Rs. 1,78,493crore in previous year showing a YOY growth of 26.87 %.

> Operating Profit surged to Rs. 3,055 crore as against Rs. 2,549 crore last yearshowing a YOY growth of 19.86%.

> Net Profit rose to Rs. 1,423 crore during the Financial Year ending 31.03.2011 asagainst Rs. 1,206 crore last year showing a YOY Growth of 17.97 %

> Net Interest Margin (NIM) increased to 3.38 % during the Financial Year endingMarch, 2011 as against 2.94% last year.

> Deposits of the Bank went up to Rs. 1,31,887 crore from Rs. 1,06,056 crore lastyear. Year-on-Year basis, Total Deposits grew by 24.36 %.

> Gross Credit surged to Rs. 94,571 crore from Rs. 72,437 crore last year.Year-on-Year basis, the Gross Credit increased by 30.56 %.

> Credit Deposit Ratio rose to 72.18% as at March, 2011 end as against 68.93 % lastyear.

> Retail Credit grew to Rs.13,029 crore from Rs. 10,082 crore last year,constituting an increase of 29.23 % during the financial year.

> Non-Fund Non Interest Income during the Financial Year ending March, 2011 stood atRs. 857 crore as against Rs. 697 crore last year.

> Capital Adequacy Ratio stood at 12.96 % as on 31.03.2011 as against the stipulatednorm of 9%.

> Gross NPA to Gross Advances and Net NPA to Net Advances Ratios stood at 1.74% and0.79% as at March, 2011-end respectively.

> Provision Coverage Ratio stood at 75.67 %.

CAPITAL AND RESERVES

Due to preferential allotment of equity to Government of India the paid-up capital ofthe Bank increased from Rs 446.70 cr to Rs.476.22 crores as on 31.3.2011. The reserves& surplus went up to Rs.8031.17 crores as at end of this year from Rs..6306.25 croresas on 31.03.2010.

Dividend

The Board of Directors of the Bank has recommended a dividend @ 60 % i.e. Rs. 6 perequity share of Rs.10 each subject to approval by the Govt. of India.

FINANCIALS

Important ratios of the Bank are depicted below;

OFFICES & BRANCHES

The Bank opened 129 new branches during 2010-11, taking total branches to 2416 as on31.3.2011, with 993 rural, 454 semi-urban, 508 urban, 460 metropolitan branches and 1foreign branch.

DEPOSIT MOBILISATION

Total deposits of the Bank showed a significant growth of 24.36 % to Rs. 131887 croresas on 31.3.2011. Low cost deposits grew by 20.69% to Rs.44156 crores as on 31.3.2011,constituting 33.70 % of aggregate deposits.

Bank emphasized on low cost deposits mobilization and observed saving deposits &CASA deposits mobilization campaign during the year. During the SB mobilization campaign(from 01.09.10-31.03.11), over 1.3 million new saving accounts were opened and savingdeposit mobilized to the tune of Rs.2663.37 crores.

CREDIT DEPLOYMENT

Total advances of the Bank went up by 30.56% to Rs.94570 crores as on 31.3.2011.Credit-deposit ratio (gross) stood at 72.18 % as against 68.93% last year. The Bankincreased its market share in the system to 2.23 % from 2.15% during the period. TheBenchmark Prime Lending Rate (BPLR) of the Bank was at 13.75 % on 31.03.2011. Yield onadvances stood at 10.50 % during 2010-11 as against 10.57 % during 2009-10 in line withthe general market scenario.

NON-PERFORMING ASSETS (NPAs) MANAGEMENT

The Bank attached great importance on recovery of non-performing assets. The Bank hasrecovered Rs 929.16 cr from non performing assets including written off debts during2010-’11 as against Rs 681.35 cr in 2009-’10. The Gross & Net Non-performingassets of the Bank stood at Rs. 1647.92 crores & Rs. 736.37 crores as on 31.03.2011The Gross & Net NPAs as percentage to gross advances & net advance was 1.74 %& 0.79 % respectively. The provision coverage ratio of the Bank stood at 75.67%

SOCIAL BANKING

• Priority Sector Credit grew from Rs.24279 Crore as on 31.03.2010 to Rs.30764Crore as on 31.03.2011, registering an absolute YOY growth of Rs.6485 Crore (26.71 %). theBank has exceeded the National Goal (40.00%) of PSC to ANBC by achieving 42.96 % as onMar’11.

• Agriculture Credit outstanding increased from Rs.11567 Crore as on March 2010 toRs.13387 Crore as on March 2011. The Agricultural advance to Adjusted Net Banking Creditwas 18.20% as on March 2011, thereby achieving the National goal of 18%.

• Direct Agriculture Credit outstanding increased from Rs.8340 Crore as on March2010 to Rs.9808 Crore as on March 2011. Bank has exceeded the National Goal (13.50%) ofDirect Agriculture to ANBC by achieving 13.70% as on Mar’11.

MSME Sector:

• The Bank was awarded 1^st prize for outstanding work in MSME lendingfrom Her Excellency Hon’ble President of India Smt Pratibha Patil.

• Credit to Micro and Small Enterprises (MSE) grew from Rs. 8188 Crore as on March2010 to Rs.11990 Crore as on March 2011, registering an absolute YOY growth ofRs.3802Crore (46.44%). Share of Micro Enterprises to Micro & Small Enterprises hasexceeded the National Goal (50%) by achieving 50.68% as on Mar’11. Credit to Micro,Small & Medium Enterprises (MSME) increased from Rs.9771crores to Rs.14384 crores ason 31.03.2011, showing a YOY growth of 47.21%.

• Further the Bank has given thrust on credit delivery to collateral free loanscovered under CGTMSE. As on 31.03.2011, 26092 proposals have been covered under CGTMSEamounting to Rs.896.80 crores and the Bank has emerged amongst best performing Banks interms of number of proposals covered under CGTMSE during 2010-11

Table 1: Priority Sector Credit :

Table 2: Ratios (in percentage)

• New Products / Schemes launched:

The Bank has launched several structured products under Priority Sector Credit topromote agro-based industries and support trading of farm produce viz Scheme for Financingto Rice Shelling Units,Allbank Liquid Scheme for Artiyas (Commission Agents),Scheme forfinancing Doctors/Medical Practitioners for Clinics/Nursing Homes, Scheme for Constructionof Godown under lease agreement with FCI/ Central Govt/ State Govt. Corporation /Agenciesand Scheme for Seed Processing Units.

• Bank’s Exposure to Micro Finance Institutions (MFIs)

18 number of MFI accounts involving Rs.218.54 crores has been sanctioned by Bank. As on31.03.2011, there is an outstanding of Rs.127.93 crores,

• State Level Bankers’ Committee (SLBC)

The Bank as SLBC convener, continued thrust on co-coordinating banking efforts forEconomic upliftment of state of Jharkhand in association with other banks operating in thestate and drew roadmap for providing banking facilities to 1541 villages having populationover 2000. A mobile banking van with ATM was also operationalised to cover 12 villages inthe state to provide banking facilities. The bank also started one coin vending machine atRanchi. The Bank conducted meetings of SLBC from time to time and converted the SLBC intoa strong forum to discuss and review banking initiatives for the development of the state.

• Lead Bank Scheme

Under Lead Bank responsibilities in 17 districts( 13 in Uttar Pradesh, 2 in Jharkhandand one each in Madhya Pradesh and West Bengal) the Bank disbursed Rs.1605.53 crores underDistrict Credit Plan 2010-11 achieving 93.31% of the target.

• Regional Rural Banks (RRBs)

The Bank-sponsored two RRBs,one in UP namely Allahabad UP Gramina Bank and the other inM.P.namely Sharada Gramina Bank. The two RRBs cumulatively disbursed Rs.1637.07 croresduring 2010-11 under the Annual Credit Plan against a target of 1681.50 crores achieving97.36% of target. The two RRBs continued to improve their performance with an aggregateprofit of Rs.79.20 Crores during 2010-11. The accumulated profit stood at Rs 553.42 Croresin 2010-11 as against Rs.474.21 Crores during 2009-10.

• Financial Inclusion

Bank has been given the responsibility of 2618 villages having population of 2000 andabove where banking services are to be provided by opening of banking outlet byMarch’2012 under ICT enabled Financial Inclusion by adopting various models viz.Biometric Smart Card solution through Business Correspondents, Mobile Banking Van fittedwith ATM, and opening of Brick & mortar branches. During the year the Bank had covered1054 villages against a target of 1046 villages Transaction by Smart cards through HHD hascommenced.

• CORPORATE SOCIAL RESPONSIBILITY

The Bank, as a responsible Corporate Citizen, has initiated several measures towardssustainable development of the society reflecting its concern for social welfare anddevelopments, some of which are as under.

• Financial Literacy And Credit Counselling Centres

In order to provide financial education and credit counselling to the people havinglimited resources and skills to appreciate the complexities of financial dealings, theBank has so far opened two Financial Literacy and Credit Counselling Centres christened"Samadhan"- one at Kolkata (WB) and another at Banda (UP). Setting up of another11 more FLCCs is in progress.

• Rural Self Employment Training Institute (RSETI)

Bank has so far established 11 Rural Self Employment Training Institute (RSETI) up to31.03.2011 to impart training to the rural youths and Farmers for setting up of smallbusiness enterprises with hand holding and escort services. Bank has planned to establishanother 10 RSETIs in rest of the lead district during 2011-12.

INTERNATIONAL BANKING

The Bank carries out its International business through its 56 authorised/designatedbranches, which includes 5 international branches. Export credit of the Bank as on31.03.2011 stood at Rs.2911.23 crore. The bank is taking steps to increase the credit flowto exporters. Exporters’ meets are arranged at various centers

Overseas presence l The Bank is having one overseas branch at Hong Kong, Thebusiness of the Hong Kong branch has increased from Rs 1128 cr as on 31.03.2010 to Rs3284cr as on 31.03.2011. The Hong Kong branch has earned a profit of Rs 19.01 cr in2010-’11 as against a profit of Rs 12.63 cr during 2009-‘10

l The Bank is also having a Representative office at Shenzhen, China and in terms ofregulatory guidelines; the Bank is eligible to open a full fledged branch. The Bank isexploring the possibilities of opening more overseas branches.

RETAIL CREDIT

In order to deliver outstanding service to our customer with focused attention in aspecialized manner, the Bank has dedicated delivery channel for Retail Lending through its27 CRBBs & 75 Retail Banking Boutiques (RBBs) across the country. Total outstandingunder Retail Credit as on Mar’ 2011 stood at Rs. 13028.96 Crore as against Rs.10082.14 Crore as on Mar’2010. This shows an increase of 29.23 % during the year.Disbursement under Retail Credit during 2010-11 was Rs. 3868.63 Crore as againstRs.3148.97 Crore during 2009-‘10 registering a growth of 22.85 %. Online applicationof Retail Loans through INTERNET at 27 centers was introduced. Bank has finalized tie-upwith a number of reputed Automobile manufacturers for financing their vehicles. Bank haslaunched "Premium Housing Finance scheme for High Net worth Individuals(HNIs)"and"SARAL- 2" for the employees of the Organizations/Institutions,where the salaries are disbursed through Bank’s branches.

FEE BASED INCOME

The income from the Third Party Product (TPP) Business (Life, Non Life, Mutual Fund)grew by 12.07 % to reach at Rs 19.69 Crores during FY 2010-11 from Rs 17.57 Crores in thelast FY. Bank’s corporate General Insurance partner Universal Sompo General InsuranceCompany has designed a special health insurance policy (Universal Sompo’s SampoornaSwasthya Kavach) for the customers and the employees of the Bank. The policy is for theprotection against spiraling medical cost and available for individuals & families.

CUSTOMER SERVICE

The Bank’s "Customer Service Committee of the Board" is committedtowards excellence in customer service. The suggestions of the Committee on Procedures andPerformance Audit on Public Services (CPPAPS), constituted by Reserve Bank of India, areaccorded top priority for implementation in the Bank. The Bank is making constantendeavour to strive for and achieve an ideal situation of complaint free environment.

KNOW YOUR CUSTOMER & ANTI MONEY LAUNDERINGS

The Bank has adopted the comprehensive policy guidelines on Know Your Customer/ AntiMoney Laundering Norms in consonance with the Reserve Bank of India directives. Theguidelines for submission of mandatory returns viz. Cash Transaction Reports (CTRs),Suspicious Transaction Reports (STRs) and Counterfeit Currency Reports as per theprovisions of the PMLA, 2002 have been issued from time-to-time and all branches/officeshave been sensitised on submission of these return within the prescribed time limit

INFORMATION TECHNOLOGY

• As on 31.03.2011, the Bank has implemented CBS in all its branches

• Online Retail Loan processing and sanction to the customers of the leadgenerating branches of CRBB has been made available in the intranet site.

• The Internet Website http://www.allahabadbank.in is available in 3 languagesi.e. Hindi, English and vernacular language Bengali.

• The Internet banking for both the individuals and for corporate customers withRTGS/ NEFT fund transfer facilities has been started and is live since 01.01.2011.

• Mobile banking Van with ATM through CDMA VPN connectivity with CBS network hasbeen introduced at Dumka, Jharkhand,at Kasraila branch under Sitapur Zone and at Khairabranch in New Delhi Zone.

• Beta version of Mobile banking application deployed successfully in test region.

• In line with the directives of CBEC/RBI/IBA, EASIEST has been rolled out inentire India. Bank has 183 authorized branches, which are participating in the project.E-Payment facility for Indirect Taxes (CBEC-EASIEST) for Tax payers and this facility isavailable to the customers of all branches. This facility is also available throughe-payment on Internet banking.

• The Bank has implemented Cheque Truncation System under NCR (National CapitalRegion) of Delhi. The implementation of CTS in Chennai grid is in progress.

• SMS Alerts is operational and on an average 31000 SMS Alerts are generated.

• RTGS / NEFT have been made live in 2372 branches.

• In arrangement with M/s UAE Exchange and Financial Services Ltd., Bank haslaunched two products namely X-press Money and Money Gram for making hassle free inwardRemittances.

INSPECTION AND AUDIT

Bank has switched to on line Risk Based Internal Audit (RBIA) from 1^st April2010. Under this system the audit plan is prepared with reference to the Risk Profile ofthe branch and audit resources are directed towards high risk areas.

VIGILANCE

• Preventive Vigilance Committee has been formed at every branch & office ofthe bank. Bi-monthly Preventive Vigilance Committee Meetings are organized at allbranches/offices.

• Bank’s Quarterly Newsletter on vigilance issues called‘ALL-ALERT’ is Introduced

• Initiative has been taken for formation of Off-site Monitoring System to screenhigh value suspected transactions.

• Preventive vigilance workshops at various zones all over India were conductedduring the year.

OFFICIAL LANGUAGE

• Compliance of various provisions under the Official Language Policy was ensuredviz bilingual issuance of documents under Section 3 (3) of Official Language Act, reply ofHindi letters in Hindi, bilingual publication of manuals & codes, bilingualisation ofstationery items was ensured.

• Bank was awarded prestigious "Indira Gandhi Rajbhasha Puraskar" forthe year 2008-09 for excellent performance in the area of Official Language Implementationfrom Official Language Department, Ministry of Home Affairs, Government of India. Theprize was received by our Chairman and Managing Director on 14th September, 2010 from HisExcellency, Mohd. Hamid Ansari in presence of Hon’ble Union Home Minister andHon’ble Union Home Ministers of State.

• Our Chairman and Managing Director received First Prize for Bank’sBilingual House Magazine Triveni Dhara and Third Pize for official language implementation2008-09 from Shri D. Subbarao, Hon’ble Governor of Reserve Bank of India in the PrizeDistribution Ceremony held on 26.05.2010 at the Central Office of R.B.I., Mumbai.

• Bank has secured "First Position" in linguistic region "A"and "Third Position" in linguistic regions "B" and "C" under"Resereve Bank Rajbhasha Shield Competition"for the year 2009-10.

• Bank has secured Third Position for our House Magazine Triveni Dhara under theReserve Bank Bilingual House Magazine Competition 2009-10 among all the public sectorbanks and financial institutions.

• Two participants of our Bank secured ‘First’ and ‘Second’position in linguistic groups ‘A’ and ‘B’ respectively in the AllIndia Inter Bank Hindi Essay Competition 2009-10 organised by Reserve Bank of India.

• Under the Town Official Language Implementation Committee prizes, Bank’sHead Office received the "Rajbhasha Shield", Zonal Office, Dehradun received the‘First Prize’, Zonal Office, Lucknow, Rajmahal Road Branch, Baroda and StaffTraining Centre, Hyderabad received the "Second Prize" and Zonal OfficeHyderabad received the ‘Third Prize’ for excellent implementation of OfficialLanguage.

HUMAN RESOURCES DEVELOPMENT

• The Bank laid prime importance on developing human capital in tune with itsquest to emerge as a bank of global stature. During 2010-11, the Bank undertook processesfor recruitment of 1,117 Officers (including Specialist Officers) & 990 clerical cadreemployees.

• Training and capacity building was given paramount importance. Much emphasis waslaid on e-learning and other alternate advanced channels of training/learning of the humancapital during the year, in tune with the changing scenario.

PUBLICITY ENDEVOURS

• The bank has gone for nation-wide campaign on Television, Radio, andNewspapers/Magazines, hoardings etc. during the year 2010-11 for enhancing Bank’simage and brand visibility.

SUBSIDIARY & JOINT VENTURE

• All Bank Finance Ltd., a wholly owned subsidiary of Allahabad Bank, engaged inCorporate Advisory Services, Project Appraisal, Issue Management, Loan SyndicationDebenture and Trusteeship Underwriting, posted a profit of Rs. 2.80 crores during 2010-11.

• The Bank holds 27% equity stake in Asset Management Company "ASREC (India)Ltd" along with other Banks/ Institutions

• The Bank holds 30% equity stake in joint venture company "Universal SompoGeneral Insurance Company Limited" for general insurance business along with IndianOverseas Bank, Karnataka Bank Ltd., Dabur Investment Ltd. and Japanese insurance majorSompo.

FUTURE PLANS

• The Bank will focus on Retail Business, Loan Syndication, Sale of Gold Coins CMSand Bancassurance etc in addition to other core banking activities.

• The Bank is planning for overseas expansion.

BOARD OF DIRECTORS

• The Board of Directors, the Management Committee and the Audit Committee of theBoard met 15, 22 and 9 times respectively during 2010-11. The Director’s PromotionCommittee, Shareholders’/Investors’ Grievance Committee, IT Sub-Committee, FraudMonitoring Committee, Customer Service Committee, Remuneration Committee, Risk ManagementCommittee, Nomination Committee, Share transfer Committee, Share Allotment Committeeand Flat Purchase Committee met 5, 1, 8, 7, 4, 1, 4, 1, 18, 1 and 2 times respectivelyduring 2010-11.

• The RBI Nominee Director, Shri Ramaswamy joined the Board as Director from30.07.2010. Shri Ramaswamy is working as Chief General Manager (CGM), Expenditure &Budgetary control, at Central Office RBI Mumbai.

• Shri Sudip Chaudhuri joined the Board as Shareholders’ Director from03.06.2010. Shri Chaudhuri has been serving Indian Institute of Management, Calcutta asProfessor (Economics Group) since 1990.

• Shri R.M.Chaturvedi joined the Board as Government Nominee Director underChartered Accountant category wef 14.07.2010 for a period of 3 years. Shri Chaturvedi is aChartered Accountant and is having 26 years of experience.

• Shri Gour Das joined the Bank as workmen Employee Director wef 16.08.2010 for aperiod of 3 years. Shri Gour Das is a Commerce Graduate and is having 38 years of bankingexperience.

• During the year Shri Mohammad Tahir, Shri K. K. Dogra & Smt. Joginder Kaurretired from the Board of Directors after completion of their tenure.

ACKNOWLEDGEMENTS

The Board of Directors records its appreciation for continued support and patronage ofthe shareholders/investors of the Bank. The Board of Directors gratefully acknowledges thevaluable and timely advice, guidance and support from the Reserve Bank of India,Government of India and other regulatory agencies and look forward to their continuedsupport and co-operation. The Board of Directors is thankful to the customers for theircontinued trust and confidence on the Bank.

The Board records its appreciation for valuable contributions of the outgoing membersand welcomes the new incumbents.

The Board of Directors is pleased to place on record their appreciation of thecommitted services of the Bank’s employees.

For and on behalf of the Board of Directors,