Andhra Bank Annual Report 2012-13 PDF

ANNUAL REPORT 2012-2013
/ CONTENTS
/ From the Chairman & Managing Director
/ Notice of Annual General Meeting
/
Directors Report / Management Discussion and Analysis
II III ( ) / Disclosures Under Pillar-III of Basel-II

(New Capital Adequacy Framework)
/ Corporate Governance Report
/ Balance Sheet
/ Profit and Loss Account
/ Significant Accounting Policies
/ Notes on Accounts
/ Cash Flow Statement
/ Auditors Report
/ Our Progress at a glance
/ Key Performance Ratios
/
Abridged Financial Statements in Foreign Currency
- - /
Classification of Branches - Population Groupwise
- /
Financial Statements of Subsidiary - Andhra Bank Financial Services Limited
/
Consolidated Financial Statements of Andhra Bank and its Subsidiary
/ Proxy Form
/ / Attendance Slip / Entry Pass
AUDITORS
]
NATARAJA IYER & CO

UMAMAHESWARA RAO & CO

R SUBRAMANIAN AND COMPANY

PATRO & CO

C R SAGDEO & CO

Registrar & Share Transfer Agents
( )

21/22,
5, ( )
- 400 009
M/s. MCS Ltd. (Unit: Andhra Bank)
Kashiram Jamnadas Building
Office No. 21/22 Ground Floor
5, P. DMello Road, (Ghadiyal Godi)
Mumbai - 400 009
NAG & ASSOCIATES

1
3
7
11
49
79
130
131
141
147
179
181
183
185
187
188
189
229
264
265
^ 2012-13

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2012-13

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2
Chairman & Managing Directors Letter to Shareholders

Dear Shareholders,
I am pleased to share with you the
performance of your Bank for the
Financial Year 2012-13. Even
under stressed economic
environment, your Bank has
shown robust growth in Business. I
am happy to inform that your Bank
has crossed the milestone of
Rs.2,00,000 Crore of Total
Business during 2012-13.
Risks and uncertainties remain on the global economic front
and lead indicators point to a sluggish global growth. Political
economy risks that block or delay credible and determined
policy actions in advanced economies (AEs) are inhibiting
recovery.
For Emerging and Developing Economies (EDEs), risks of
spillovers from AEs remain significant. While global
inflationary pressures are likely to be subdued, given still
large output gaps, several EDEs could potentially face the
threat of elevated energy prices.
The domestic economy continues to face major challenges in
the form of an alarming Current Account Deficit
(CAD) and worsening Balance of Payments situation. These
factors have contributed to the deteriorating investors
confidence and market sentiments. The Advance Estimates
of National Income 2012-13 released by Central Statistics
Office (CSO) have estimated GDP growth at a decade low
level of 5.0%.
The performance highlights of your Bank for the Financial

Year 2012-13 are as follows:
Total Deposits increased to Rs.1,23,796 Crore from

Rs.1,05,851 Crore in the previous year, registering a
growth rate of 17.0%.
Cost of Deposits stood at 7.87%.
Gross Bank Credit increased to Rs.1,00,138 Crore

from Rs.84,684 Crore, registering a growth rate of
18.2%.
Credit Deposit Ratio stood at 80.94% compared to

80.07% during the previous year.
Net Interest Margin stood at 3.21%.
Non-Interest Income stood at Rs.1,047 crore.
Net Profit for 2012-13 stood at Rs.1,289 Crore.
Gross NPAs to Gross Advances Ratio stood at

3.71%.
Net NPAs to Net Advances Ratio stood at 2.45%.
Capital Adequacy Ratio stood at 11.76% under

BASEL-II.
Return on Average Assets stood at 0.99%.
Net Profit per Employee stood at Rs.7.80 lakh.
Average Business per Employee stood at Rs.12.22

Crore.
During FY 2012-13, your Bank has taken the following I.T.

initiatives to improve Customer Service:
Gross Bank Credit of SCBs recorded a growth rate of 14.1%

over the previous year, which is lower than the growth of
17.0% witnessed during FY 2011-12. The general economic
slowdown contributed to a low credit off-take during 2012-13.
The Credit-Deposit Ratio for the industry remained stable at
78.0%.
Total Business increased from Rs.1,90,535 Crore in

2011-12 to Rs.2,23,933 Crore in 2012-13, registering a
CASA Deposits increased to Rs.31,759 Crore from

Rs.27,947 Crore, registering a growth rate of 13.6%.
It gives me great pleasure to inform that your Bank has

surpassed the targets under Priority Sector Lending,
including Agricultural Advances.
During the Financial Year 2012-13, Banking Industry

performed better than the previous year even in the backdrop
of a slowing economy. The Deposits of Scheduled
Commercial Banks registered a growth rate of 14.3% over
the previous year as compared to a y-o-y growth of 13.4%
registered during the previous Financial Year.
Cheque Deposit Machines have been installed during

the year at select Branches.
Bunch Note Acceptor machines have been deployed at

e-banking centres.
100 self-service passbook printing kiosks have been

deployed during the year.
Bank has launched IMPS P2A (Person to Account)

funds transfer facility using beneficiary account number
as IFSC code.
IMPS facility has been extended to the customers

through our Banks ATMs also.
Security features for Internet Banking transactions have

been enhanced by introducing One Time Password
(OTP) for financial transaction, One time Access Code
(OAC) and cooling period for addition of third party payee.
Due to the confidence and support placed by the

shareholders on the Bank and on account of the hard efforts
put in by the committed staff, your Bank received the
following awards during 2012-13:
503 -{
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2011-12 -{

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2012-13 50

02.05.2013
Based on the evaluation of 503 Rural Self Employment

Training Institutes (RSETIs) spread across the country, our
Rajahmundry Institute has been adjudged the Best RSETI in
the country for the year 2011-12 by Ministry of Rural
Development, Government of India.
Your Bank is committed towards delivering best services to

customers by leveraging on technology and human
resources, and would tirelessly work towards maximizing
shareholders value.
With warm wishes,
In the NFS Operational Excellence Awards 2012 (National

Payment Corporation of India) held at Mumbai on
14.12.2012, your Bank was presented Special Jury Award
in recognition of your Banks excellent performance in key
parameters in respect of ATMs and Switch connected to NFS
ATM Network.
Yours sincerely,
(B. A. PRABHAKAR)
Chairman & Managing Director
The Board of Directors of the Bank have recommended a

dividend of 50% for the year 2012-13.
Place
Date
:
:
Hyderabad
02.05.2013
(o N N GN)
A Govt.of India Undertaking
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(o N N GN)
NOTICE
Notice is hereby given that the Thirteenth Annual General Meeting of shareholders of Andhra Bank will be held on Monday, July
22nd, 2013 at 4.00 p.m. at Ravindra Bharathi, Saifabad, Hyderabad 500 004, to transact the following business:
1.
To receive, consider and adopt the Audited Balance Sheet as at 31st March 2013, and the Profit and Loss Account for the
year ended on that date, the Report of the Board of Directors on the working and activities of the Bank for the period
covered by the Accounts and the Auditors Reports on the Balance Sheet and Accounts.
2.
To declare dividend on Equity Shares.

For and on behalf of the Board of Directors
Place: Hyderabad
Date: 02.05.2013
(B.A. Prabhakar)
6.
Notes:
1.
A MEMBER ENTITILED TO ATTEND AND VOTE AT THE

MEETING IS ENTITLED TO APPOINT A PROXY TO
ATTEND AND VOTE THEREAT INSTEAD OF HIMSELF
/ HERSELF. A PROXY NEED NOT BE A MEMBER.
2.
In order to be effective, the proxy form must be

deposited at the Head Office of the Bank atleast four
days before the date of the meeting. No employee of the
Bank shall be appointed as a duly authorized
representative or as a proxy.
3.
Appointment of a representative :
The Board of Directors have recommended a dividend

of 50% (Rs.5.00 per equity share) for the financial year
2012-2013. The dividend, if approved by the
Shareholders at the Annual General Meeting, shall be
paid to the shareholders holding shares in physical form
and whose names appear in the Register of
Shareholders and to the shareholders holding shares in
electronic form on the basis of the beneficiary position
statement provided by the depositories as at the end of
13.07.2013. The dividend payout date is 29.07.2013.
7.
No person shall be entitled to attend or vote at the

meeting as a duly authorized representative of a
Company, unless a copy of the resolution appointing
him as a duly authorized representative certified to be a
true copy by the Chairman of the meeting at which it was
passed shall have been deposited at the Head Office of
the Bank at Hyderabad not less than four days before
the date of the meeting.
4.
Dividend payment by way of Electronic Clearing

Service (ECS) :
In order to protect the investors from fraudulent
encashment of their dividend warrants, the Bank has
offered Electronic Clearing Service facility to the
shareholders having Bank accounts at the following
centers:
Agra, Allahabad, Aurangabad, Baroda (Vadodara),
Bhopal, Coimbatore, Dhanbad, Durgapur, Erode,
Ernakulam, Hubli, Indore, Jabalpur, Jamshedpur,
Jodhpur, Kakinada, Lucknow, Ludhiana, Madurai,
Mangalore, Mysore, Nasik, Nellore, Pondicherry, Pune,
Rajkot, Ranchi, Solapur, Surat, Thissur, Tiruchirapalli,
Ti r u p a t h i , U d a i p u r, Va r a n a s i , V i j a y a w a d a ,
Visakhapatnam
Attendance slip cum entry pass:

For the convenience of the members, attendance slip is
enclosed to this report. Members are requested to fill in
and affix their signatures in the space provided therein
and handover the attendance slip-cum-Entry pass at
the entrance of the venue of the meeting. Proxy /
Representative of the shareholder should mark on the
attendance slip as proxy or representative as the case
may be.
5.
Dividend :
8. Dividend payment by way of National Electronic

Clearing Service (NECS) :
The objective of the system is to facilitate centralized
processing of payment of dividend. The NECS (credit)
facilitate the Issuer multiple credits to beneficiary
accounts which have been covered under CoreBanking Solution. For the purpose, the shareholders
Book Closure:
The Register of Shareholders and Share Transfer
Books would remain closed from 15.07.2013 to
19.07.2013 (both days inclusive).

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have to update their bank account details by furnishing

their CBS account number, MICR No., etc. to their
respective Depository Participants in case of
dematerialized holdings and to the Registrars &
Transfer Agents in case of physical holdings. The NECS
facilitates the shareholder to receive dividend in his/her
account on the pay-out date itself.
9.
(ii) Unpaid/Unclaimed Dividends

In terms of the Banking Companies (Acquisition and
Transfer of Undertakings) and Financial Institutions
laws (Amendment) Act, 2006 (which has come into force
from 16.10.2006), the dividends remaining unpaid with
the Bank for a period of 7 years from the date of
declaration of dividend, are liable to be transferred to
Investor Education and Protection Fund established
under sub-section (1) of Section 205C of the Companies
Act, 1956.
Updating of any change in address of the

shareholders :
The shareholders holding the shares in physical form
are requested to inform the Bank or its Registrars for
noting the change in their address, if any, for prompt
receipt of any correspondence. The shareholders
holding the shares in electronic form are requested to
update the change in their address, if any, with their
respective Depository Participants.
In line with the above guidelines, all such dividend

amounts remaining unpaid or unclaimed for a period of 7
years from the date of declaration of dividend will be
transferred to the Investor Education and Protection
Fund, with effect from 16.10.2013.
The shareholders who have not encashed their dividend
warrants for the year/s 2000-01, 2001-02, 2002-03,
2003-04 (Interim and Final), 2004-05 (Interim and Final)
and 2005-06 may inform the Bank or its Registrars &
Share Transfer Agents at the following address:
10. Consolidation of Folios :

The shareholders who are holding shares in identical
order of names in more than one account are requested
to intimate to the Registrars and Transfer Agent, the
ledger folio of such accounts and send the share
certificates to enable the Bank to consolidate all the
holdings into one account. The share certificates will be
returned to the members after making necessary
endorsement in due course.
Investor Services Section

Andhra Bank
Dr.Pattabhi Bhavan
Head Office
5-9-11, Saifabad
Hyderabad-500 004.
11. Lodgment for Transfers :
(iii) Dematerialisation of shares
Share Certificates along with the duly filled in transfer

deed should be forwarded to the Registrars and
Transfer Agents of the Bank at the following address:
The shareholders who are holding the shares in physical

form are requested to get their shares dematerialized to
avoid loss / misplacing of paper shares.
M/s. MCS Limited (Unit: Andhra Bank)

Office No. 21/22 Ground Floor
5, P.D'Mello Road, (Ghadiyal Godi)
Mumbai 400 009.
(iv) Others
a.
Please note that copies of the Annual Report will not be

distributed at the Annual General meeting as an
Economy measure. Hence, shareholders are requested
to bring their copies of the Annual Report (Abridged/Full
copy) to the venue of the meeting.
b.
Shareholders may kindly note that no gifts / coupons will

be distributed at the venue of the meeting.
c.
Shareholders are advised to avoid bringing bags / brief

cases/ tape recorders / cameras etc. as these items are
subject to a security check and may not be allowed at the
venue.
12. Requests to Shareholders :

(I)
M/s. MCS Limited

Unit: Andhra Bank
Office No.21/22, Ground Floor
5, P.DMello Road, Ghadiyal Godi
Mumbai 400 009.
Green Initiative :
In support of the green initiative, the Bank will be
sending the soft copy of the Annual Report through email to those shareholders who have registered their email id with their depository participant/ Bank's Registrar
& Share Transfer Agent. The Bank has decided to
circulate the hard copy of Abridged Annual Report
containing the salient features of all the documents, as
prescribed to all those shareholder(s) who have not
registered their e-mail address(es).
Note:
Bank shall highly appreciate if shareholders, desirous of
making any suggestion, seeking clarification, etc.
relating to the item of agenda only, at the Annual General
Meeting, may send their suggestions, Queries, etc. so
as to reach the Investors Services Cell at Head Office of
the Bank atleast 15 days before the date of meeting.
Full version of the Annual Report will be available on the

Banks website www.andhrabank.in.
In case a
shareholder wishes to receive a printed copy, he/she
may please send a request to the Bank by e-mail to the
id: mbd@andhrabank.co.in; upon which a hard copy of
full annual report will be sent to the shareholder.

31 \ 2013

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2013 190.92
inflation of 8.6% during the last three years is well above the
average of 5.4% during the previous decade 2000-10.
Moreover, the gradual decline can also be attributed to base
effect, and decline in overall production which impacted
aggregate supply of the economy as well.
DIRECTORS REPORT:
Directors of your Bank are happy to present the Annual
Report of the Bank together with the audited Statement of
Accounts and Auditors Report for the financial year ended
March 31, 2013.
The major contributor to inflation has consistently been Food

inflation. During 2012-13, inflation of Food Articles has gone
up to 9.9% from 7.3%, whereas inflation of Fuel & Power has
come down to 10.5% from 14.0% and inflation of
Manufactured Products has come down to 5.4% from 7.3%
over the previous year. Overall, both domestic pressures and
increase in global commodity prices are responsible for the
surge in WPI inflation.
MANAGEMENTS DISCUSSION & ANALYSIS

1. MACRO ECONOMIC DEVELOPMENTS
The general slowdown of the Global economy since 2008
affected India like most other economies of the world, and
much has been said about Indias rapid post-crisis recovery.
However, Financial Year 2011-12 saw a steep fall in GDP
growth to 6.2% from the average 9.0% growth seen in the
post-crisis recovery period. Further, the Central Statistics
Office (CSO) in its Advance Estimates of National Income for
2012-13 estimates GDP growth to further go down to a
decade low level of 5.0% for the Financial Year 2012-13. The
estimates of GDP for Q3 2012-13 released by CSO show a
growth of 4.5% over the corresponding quarter of the
previous year, the weakest in the last 15 quarters.
During the Financial Year 2012-13, the Monetary Policy

stance taken by Reserve Bank of India (RBI) has been to
balance the growth-inflation dynamics through a
combination of liquidity easing and policy rate cut. However,
liquidity conditions tightened in Q3 of 2012-13 mainly
because of an increase in government cash balances with
RBI.
The years preceding the crisis witnessed huge increase in

capacity in our economy, which was made possible by sharp
increase in investment. During 2007-08, investment was at
38.1% of GDP. The period also witnessed healthy household
savings as a consequence of enhanced productivity due to
technological, infrastructural and institutional improvements.
The current account deficit during the period also remained
well below 1.0% levels, with Foreign Direct Investment (FDI)
contributing towards productivity of investments, which was
translated into higher exports.
After lowering the Cash Reserve Ratio (CRR) by 125 basis

points (bps) during Q4 of 2011-12, RBI further reduced the
repo rate by 50 bps in April 2012, by 25 bps in January 2013
and by 25 bps in March 2013 to stand at 7.50%. The CRR
was reduced in two stages by a further 50 bps by RBI during
September 2012 and November 2012 to ease monetary and
liquidity conditions and again by 25 bps in January 2013 to
stand at 4.00%. Also, the Statutory Liquidity Ratio (SLR) was
reduced by 100 bps in August 2012 to improve the credit
conditions facing the private sector.
Therefore, even though investment slowed in the post-crisis

period, private consumption demand on account of
increased incomes and government programmes in rural
areas helped in sustaining the growth momentum, but
simultaneously contributed to higher rates of inflation on
account of fall in supply levels across industries.
1.2 BoP and External Sector

During April-December 2012, Indias Current Account Deficit
(CAD) stood at US$ 71.7 billion accounting for 5.4 per cent of
GDP as against US$ 56.5 billion (4.1 per cent of GDP) in the
same period of 2011. Net inflows under financial account
increased to US$ 70.7 billion during April-December 2012 as
compared to US$ 58.3 billion during the same period in the
preceding year. The surge was mainly on account of higher
inflows on account of FII, non-resident deposits and short
term credits.
The ratio of Household Savings to GDP (at current Market

Prices) came down from 25.2% in 2009-10 to 22.3% in 201112. The financial savings of household sector as a proportion
of GDP (at current Market Prices) declined to 8.0% during
2011-12, the lowest since 2004-05 with simultaneous
increase in physical assets to 14.3% in 2011-12.
Indias CAD widened from 5.4 per cent in Q2 to a record high

of 6.7 per cent of GDP in Q3, driven mainly by larger trade
deficit. Merchandise Exports did not show any significant
growth in Q3 of 2012-13, while Merchandise Imports
registered a growth of 9.4% mainly on account of oil and gold
imports. As a result, trade deficit widened to US$ 59.6 billion
in Q3 of 2012-13 from US$ 48.6 billion in Q3 of 2011-12.
The secular fall in aggregate demand in the economy as a

whole is largely responsible for the current decline in growth
being witnessed by our economy. Even though global
economic slowdown has affected our economy adversely,
the current decline in growth is largely on account of
domestic factors. Both investor confidence and market
sentiments are hit with the fiscal deficit being viewed as
getting more unmanageable also due to various other sociopolitical-economic factors.
Foreign portfolio investment rose to US$ 8.6 billion during Q3

of 2012-13 from US$ 1.8 billion in Q3 of previous year. On
account of the surge in capital inflows, CAD during the
quarter could be fully financed.
1.1 Monetary and Liquidity Conditions
During April-March13, imports increased marginally by

0.44% (y-o-y) and exports declined by 1.76% (y-o-y) in US$
terms. The trade deficit during April-March13 stood at US$
190.92 billion.
The average Wholesale Price Index (WPI) inflation during

2010-11 remained at 9.6%, which declined to 8.9% during
2011-12 and further moderated to 7.3% during 2012-13.
Even though there is a decline over the years, the average
11
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1.3 Equity Market
was, however, constrained because of inflation broadening

and persisting at a level much above what is conducive for
sustained growth.
Through a series of policy announcements, the Repo Rate
was brought down from 8.50% during the beginning of
Financial Year 2012-13 to 7.50% at the end of FY 2012-13.
During the FY 2012-13, CRR was cut down from 5.50% to
4.00%, and Statutory Liquidity Ratio (SLR) was also cut down
from 24.0% to 23.0%.
The Union Budget for 2013-14 has made a firm commitment
to fiscal consolidation. The Gross Fiscal Deficit (GFD)-GDP
ratio is programmed to decline to 4.8 per cent in 2013-14 and
further down to 3.0 per cent by 2016-17, in line with the
revised road map for fiscal consolidation.
1.7 Measures announced in the Union Budget 2013-14
pertaining to Banks
Agricultural credit seen as the driver of agricultural
production. Finance Minister was confident that the target of
` 575,000 crore fixed for 2012-13 will be exceeded, and
proposed to increase the target to ` 700,000 crore for 2013-14.
The interest subvention scheme for short-term crop loans
will be continued and a farmer who repays the loan on time
will be able to get credit at 4 percent per annum. So far, the
scheme has been applied to loans extended by public
sector banks, RRBs and cooperative banks. FM proposed
to extend the scheme to crop loans borrowed from private
sector scheduled commercial banks in respect of loans
given within the service area of the branch concerned.
In order to incentivize the household sector to save in
financial instruments rather than buy gold, FM proposed
the following measures:
Firstly, the Rajiv Gandhi Equity Savings Scheme will be
liberalised to enable the first time investor to invest in
mutual funds as well as listed shares not in one year alone,
but in three successive years. The income limit will be
raised from ` 10,00,000 to ` 12,00,000;
Secondly, a person taking a loan for his first home from a
bank or a housing finance corporation upto ` 25,00,000
during the period 01.04.2013 to 31.03.2014 will be entitled
to an additional deduction of interest of up to ` 100,000.
This will promote home ownership and give a fillip to a
number of industries like steel, cement, brick, wood, glass
etc. besides jobs to thousands of construction workers.
Thirdly, in consultation with RBI, it was proposed to introduce
instruments that will protect savings from inflation, especially
the savings of the poor and middle classes. These could be
Inflation Indexed Bonds or Inflation Indexed National
Security Certificates. The structure and tenor of the
instruments will be announced in due course.
To encourage Micro, Small and Medium Enterprises
(MSME) to grow, it was proposed that the benefits or
preferences enjoyed by them will stay with them for up to
three years after they grow out of the category in which
they obtained the benefit. To begin with, FM proposed that
the non-tax benefits may be made available to a MSME
unit for three years after it graduates to a higher category.
The overall performance of equity market improved in

comparison to the previous financial year, despite a fragile
global economic outlook. The market sentiment responded
positively to global as well as domestic favourable policy
announcements which implied lower uncertainties.
According to the Economic Survey 2012-13, Indian markets
have been the best performing in terms of returns among
major Asian markets. At the end of December 2012, 1,759
FIIs were registered with SEBI, with the number of registered
sub-accounts increasing to 6,359. The total net FII flows to
India up to December 2012 stood at US $ 31.01 billion
(80 per cent of total flows) which remained buoyant,
indicating FII confidence in the performance of the Indian
economy in general and Indian markets in particular.
During the Financial Year 2012-13, BSE Sensex crossed the
psychological mark of 20,000 on 15.01.2013 after a gap of
more than two years. The last time Sensex had crosed the
20,000 mark was on 07.01.2011. NSE Nifty also breached the
6,000 mark on 02.01.2013 after a gap of almost two years. The
last time Nifty had crossed the 6,000 mark was on 07.01.2011.
1.4 Debt Market
During Q3 of 2012-13, G-sec yields firmed up in October, but
declined markedly since December, with bonds rallying in
response to four major factors. First, the market assessed
that the year may pass without additional market borrowing.
Second, expectations of a rate cut were built on moderating
inflation. Third, resumption of OMO purchases by the
Reserve Bank also led to a rally in G-sec market. Fourth, on
review of the governments cash position, the auction of
dated securities scheduled for January 4, 2013 got
postponed to late February 2013, which also caused the
yields to soften.
In November 2012, the limits for FII investment in GSecs and
corporate bonds (non-infra category) were further enhanced
by 5 billion each, taking the total limit prescribed for FII
investment to US$ 25 billion in G-Secs and US$51 billion for
corporate bonds (infra+non-infra).
1.5 Foreign Exchange Market
Indian Rupee depreciated slightly from ` 51.16 per US$ as on
30.03.2012 to ` 54.39 per US$ as on 28.03.2013. During FY
2012-13, Indian Rupee depreciated to a record low of ` 57.22
per US$ on 27.06.2012, but did not see many major
fluctuations throughout the year.
Indian Rupee closed slightly lower at ` 82.32 against Pound
Sterling compared to ` 81.80 on 30.03.2012, and at ` 69.54
against Euro compared to ` 68.34 on 30.03.2012. The major
fluctuations were witnessed against Japanese Yen, against
which Indian Rupee closed at ` 57.76 compared to ` 62.43 on
30.03.2012. During 2012-13, Indian Rupee reached a low of
` 72.12 against Japanese Yen on 25.07.2012.
1.6 Measures announced by RBI and Government of
India
Since October 2011, the stance of monetary policy shifted to
addressing increasing growth risks as reflected in the
slowing down of the economy. The monetary policy response
13
12 ] .151,000
] ]
] ]
] 2013-14 .2400

6 ]
]
] 150,000 1800
2013-14 ]
2013-14 .96
]
\ 2013 13 ]
.12,517 ] 2013-14
14,000 ] ]
\ ] ] III
] \

]
31.03.2014
]
[ ]

]
,
,
, ,
]

]] \
\ ];
] ]
] ]
]
1.8
\ 2013 (\ 2013
) \ ] ] .67,51,422
14.3% ] \ 2012
] 13.4%

\ ] 14.1%
] 2012-13
.52,62,836 , ] .96,422
2011-12 17% 2012-13

] 78.0%
14
2.
2.1
2012-13 31.03.2012
.1,90,535 [ 31.03.2013 .2,23,933
17.5%
2.2 ]
] 31.03.2013 .1,23,796 ]
.17,945 17.0%
] ( \ \) ] 25.7%
31.03.2013 \ ] .7,029 ] 31.03.2012
6,369 , 10.4% ]
\ ] 31.03.2013 [ 24,730 ]
31.03.2012 21,578 14.6% ]
] 31.03.2013 [ 92,037 ]
31.03.2012 .77,904 18.1% ]

2.3
31.03.2012 . 84,684 [ 31.03.2013
18.2% .1,00,138
32.0% 31.03.2012 .12,459
[ 31.03.2013 .16,451
, 28.4%
31.03.2012 .13,132 [ 31.03.2013 .16,863

2.4
2012-13 2011-12 .12,199 14.4%
. 13,957 ] [ 1047
] .860 2012-13 \
.2,767 ] .1289
2.4.1 ] 13.9% ] 2011-12
. 11,399 [ 2012-13 .12,910
] 2011-12 .9,278
11.3% 2012-13 .10,327
] 25.4% 2011-12 .1974
[ 2012-13 2476
2.4.2 ] 31.03.2013
.62.42
2.4.3 2012-13 .11,190
] .9,384
\ .2037 31.03.2013

11.5%
It was proposed to continue the Technology Upgradation

Fund Scheme (TUFS) for the textile sector in the 12th Plan
with an investment target of ` 151,000 Crore. The major
focus would be on modernisation of the powerloom sector.
FM proposed to provide ` 2,400 crore in 2013-14 for the
purpose.
During the financial year 2012-13, Andhra Bank's Business

increased to ` 2,23,933 Crore as on 31.03.2013 from
`1,90,535 Crore as on 31.03.2012, recording a robust annual
A very large proportion of handloom weavers are women

and belong mainly to the backward classes. It was
proposed to accept their demand for working capital and
term loans at a concessional interest of 6 percent.
150,000 individual weavers and 1,800 primary
cooperative societies will benefit in 2013-14. FM
proposed to allocate an additional sum of ` 96 crore in
2013-14 to the Ministry of Textiles for interest subvention.
2.2 Deposits
Andhra Banks total Deposits amounted to ` 1,23,796 Crore
as on 31.03.2013, showing an absolute accretion of ` 17,945
Crore and a growth rate of 17.0% over previous year. The
share of CASA deposits (current and savings) in Total
Deposits stood at 25.7%.
Before the end of March, 2013, FM proposed to provide

` 12,517 crore to infuse additional capital into 13 public
sector banks. In 2013-14, a further amount of ` 14,000
crore for capital infusion will be provided. It shall be
ensured that public sector banks always meet the Basel III
regulations as they come into force in a phased manner.
Public Sector Banks have assured FM that all their

branches will have an ATM in place by 31.3.2014.
Banks will be permitted to act as insurance brokers so that

the entire network of bank branches will be utilised to
increase penetration.
Banking Correspondents will be allowed to sell microinsurance products.
Group insurance products will now be offered to

homogenous groups such as SHGs, domestic workers
associations, anganwadi workers, teachers in schools,
nurses in hospitals etc.
2. PERFORMANCE HIGHLIGHTS OF THE BANK

2.1 Business
Current Deposits stood at ` 7,029 Crore as on 31.03.2013

as compared to ` 6,369 Crore as on 31.03.2012,
recording a y-o-y growth of 10.4%.
Savings Bank Deposits increased to ` 24,730 Crore as on

31.03.2013, up from ` 21,578 Crore as on 31.03.2012,
growing at a rate of 14.6%.
Term Deposits increased from ` 77,904 Crore as on

31.03.2012 to ` 92,037 Crore as on 31.03.2013,
registering a growth rate of 18.1%.
2.3 Advances
Gross Bank Credit increased by 18.2% from ` 84,684 Crore
as on 31.03.2012 to ` 1,00,138 Crore as on 31.03.2013.
Credit to Agriculture Sector registered a growth rate of 32.0%
from ` 12,459 Crore as on 31.03.2012 to ` 16,451 Crore as
on 31.03.2013.
Credit to Micro, Small and Medium Enterprises (MSME)
registered a growth rate of 28.4% from ` 13,132 Crore as on
31.03.2012 to ` 16,863 Crore as on 31.03.2013.
Direct Benefit Transfer scheme

It was proposed to redouble the efforts to ensure that the
digitized beneficiary lists are available; that a bank
account is opened for each beneficiary; and that the bank
account is seeded with Aadhaar in due course. FM
assured that the DBT scheme will be rolled out throughout
the country during the term of the UPA Government.
2.4 Profitability
1.8 Trends in Banking Industry
Total Income for the Financial Year 2012-13 increased by

14.4% from ` 12,199 Crore during the 2012-13 to ` 13,957
Crore. Non-Interest Income increased to ` 1,047 Crore
compared to ` 860 Crore in the previous year. Operating
Profit of the Bank for 2012-13 stood at ` 2,767 Crore, while
Net Profit stood at ` 1,289 Crore.
For the Financial Year ended March 2013 (as on last

reporting Friday of March 2013) the Deposits of Scheduled
Commercial Banks (SCBs) stood at ` 67,51,422 Crore
registering a growth rate of 14.3% over the previous year.
This is higher than the growth rate of 13.4% registered during
the Financial Year ended March 2012. The higher growth rate
over the previous year is a positive sign over the declining
trend witnessed during the previous year.
2.4.1 The Total Interest Income recorded a growth rate of

13.9% and increased from ` 11,339 Crore during
2011-12 to ` 12,910 Crore during 2012-13. Of this,
Interest Income from Advances grew by 11.3% from
` 9,278 Crore during 2011-12 to Rs.10,327 Crore
during 2012-13. Interest Income from investments
increased by 25.4% from Rs.1,974 Crore during 201112 and stood at Rs.2,476 Crore during 2012-13.
Gross Bank Credit for SCBs recorded a growth rate of 14.1%

over the previous year, and stood at ` 52,62,836 Crore on the
last reporting Friday of FY 2012-13, out of which Food Credit
stood at ` 96,422 Crore. The growth in advances slowed
down during 2012-13 after witnessing a robust growth of
17.0% during FY 2011-12. The general slowdown in the
economy has adversely affected the credit off-take and is a
mere reflection of the reduced production and investment in
the economy as a whole. The Credit-Deposit Ratio remained
stable at 78.0%.
2.4.2 Of the total Non Interest Income, Fee Based Income

stood at Rs.62.42 Crore for the financial year ended
31.03.2013.
2.4.3 Total Expenses during the financial year 2012-13 were
Rs.11,190 Crore against Rs.9,384 Crore during the
previous year. Of this, Operating Expenses stood at
Rs.2,037 Crore. Establishment Expenditure as a
percentage of Total Expenditure stood at 11.5% for the
financial year ended 31.03.2013.
15
1 ],
(. )
2011-12 2012-13
]
11338.73 12909.69 1570.96 13.9%
]
7579.41 9152.67 1573.26 20.8%
3759.32 3757.02
-2.30 -0.06%
859.93 1047.42 187.49 21.8%
120.91
188.93
739.02
858.49 119.47 16.2%
68.02 56.3%
1804.25 2037.21 232.96 12.9%
2815.00 2767.23
1470.33 1478.10

-47.77 -1.7%
7.77
0.5%
1344.67 1289.13 -55.54 -4.1%
]
] -2
2012-13 322.28
.2,348.45
( ) .327.34
2 ]
]

]
]

( )
]
2.5
(. )
2012-13
1289.13
99.07
322.28
11.38
319.20
310.00
327.34
98.00
\
] ] 3.21% ] 3.67 %
42.40% ] .23.04
.126.36 [ 144.67
31.03.2013
] 3.71% ]
2.45%
16
] (%)
] (%)
] ] (%)
](%)
(%)
- (%)
(%)
(%)
](.)
(.)
(%)
(%)
31.03.2012
12.45
7.51
3.67
10.04
6.71
39.06
13.18
1.19
24.03
126.36
0.91
2.12
31.03.2013
12.02
7.87
3.21
9.88
7.00
42.40
11.76
0.99
23-04
146.11
2.45
3.71
2.6 ]
31.03.2013 ] .560
2011-12 .6920
[ 13.9% ] 2012-13
.7882
31.03.2012 .7071 [ .1105
] 31.03.2013 .8176
2.7 ]
] .11,899.77 ]
.11,156.34 6.66% II
] 11.76% ] 9%
8.52% \\ -I ]
]
31.03.2009 -II ] [
], \ ] ] ]
] [ ]
-III \
-III [
-III ]
] ]
()
-II -II ]
],
] ], \ ]
4
31 \ 2012 31 \ 2013
-I ]
9.02%
8.52%
-II ]
4.16%
3.24%
13.18%
11.76%
Table 3: Key Financial Ratios
Table 1: Highlights of Revenue, Expenditure and

Profitability
(Rs. in Crore)
Parameter
Yield on Advances (%)
12.45
12.02
Cost of Deposits (%)
7.51
7.87
13.9%
Net Interest Margin (%)
3.67
3.21
Yield on Funds (%)
10.04
9.88
Cost of Funds (%)
6.71
7.00
Cost-to-income Ratio (%)
39.06
42.40
CRAR (%)
13.18
11.76
1.19
0.99
24.03
23.04
126.36
146.11
2011-12 2012-13 Absolute Percentage

Growth
Growth
Total Interest Income
11338.73 12909.69 1570.96
Total Interest Expenditure 7579.41
9152.67 1573.26
20.8%
Net Interest Income
3759.32
3757.02
-2.30
-0.06%
859.93
1047.42
187.49
21.8%
Other Income
31.03.2012 31.03.2013
Profit on sale of
Investments
120.91
188.93
68.02
56.3%
Return on Assets (%)
Core Other Income
739.02
858.49
119.47
16.2%
Earning Per Share (Rs.)
Operating Expenses
1804.25
2037.21
232.96
12.9%
Book Value Per Share (Rs.)
Operating Profit
2815.00
2767.23
-47.77
-1.7%
Net NPA (%)
0.91
2.45
Gross NPAs (%)
2.12
3.71
Provisions and
Contingencies
1470.33
1478.10
7.77
0.5%
Net Profit
1344.67
1289.13
-55.54
-4.1%
2.6 CAPITAL & NET WORTH

Andhra Banks Equity Capital stood at ` 560 Crore for the
Financial Year ended 31.03.2013. The Reserves and Surplus
of the Bank increased from ` 6,920 Crore at the end of
2011-12 to ` 7,882 Crore at the end of 2012-13, registering a
y-o-y growth of 13.9%.
Tangible Net Worth of the Bank improved from ` 7,071 Crore
as on 31.03.2012 to ` 8,176 Crore as on 31.03.2013
registering an absolute increase of ` 1,105 Crore.
2.7 CAPITAL ADEQUACY
The total Capital Funds of the Bank stand at Rs. 11899.77
Crore, up 6.66% from Rs. 11,156.34 Crore as at the end of
the previous year. With this, the Capital Adequacy Ratio as
per Basel II norms stands at 11.76% as compared to the RBI
prescribed norm of 9%. Coupled with this, a high Tier I Capital
ratio of 8.52% provides the Bank sufficient headroom for
future business expansion. As per RBI guidelines, Bank has
already moved over to Basel II Capital Adequacy Norms with
effect from 31.03.2009 and computed CRAR for Credit risk,
Operational risk and Market risks. The Bank is gearing up to
move over to Basel III by strengthening the Risk
Management systems as well as assessing the capital
adequacy and Liquidity standards to meet the Basel III
requirements. Bank has also put in place an Internal Capital
Adequacy Assessment Process (ICAAP) for assessing the
adequacy of Capital levels keeping in view the expected
increase in business levels and increased Capital
requirements in Basel III regime. The assessment process
also includes a framework for inclusion of Pillar-II risks under
Basel-II guidelines, such as Credit concentration risk,
interest rate risk in the banking book, liquidity risk, etc.
Table 4: CRAR Position
31 March 31 March
2012
2013
Tier-1 Capital
9.02%
8.52%
Tier-II Capital
4.16%
3.24%
Total
13.18%
11.76%
APPROPRIATIONS
The appropriations made out of Net Profit are shown in Table 2.
An amount of Rs.322.28 Crore was transferred to statutory
reserves during 2012-13, and with this, the statutory reserves
now stand at Rs.2,348.45 Crore. Transfer towards Dividend
(including Dividend Tax) amounted to Rs.327.34 Crore.
Table 2: Appropriations out of Net Profit
(Rs. in Crore)
2012-13
Appropriation out of Net Profit
Balance brought forward
Transfer to Statutory Reserves
Transfer to Capital Reserve
1289.13
99.07
322.28
11.38
Transfer to Revenue Reserves
319.20
Transfer to Special Reserve
310.00
Transfer to proposed Dividend (including Dividend Tax)
327.34
Profit carried over to Balance Sheet
98.00
2.5 KEY FINANCIAL RATIOS

The Bank has done considerably well in key financial ratios,
given the performance of the Industry as a whole. Net
Interest Margin (NIM) stood at 3.21% compared to 3.67% in
the previous year. Cost to Income Ratio stood at 42.40%.
Earnings per Share (EPS) stood at Rs.23.04 and Book Value
per Share (BVPS) increased from Rs.126.36 to Rs.144.67.
Gross Non-Performing Assets to Gross Advances stood at
3.71% and Net Non-Performing Assets to Net Advances
stood at 2.45% for the financial year ended 31.03.2013.
17
2.8
2012-13 50%

3.
( ] ) 17.5%
] , ] 31.03.2012 . 1,90,535 [
31.03.2013 .2,23,933
3.1 ]
]( ] ) 31.03.2012 .1,05,762
[ 31.03.2013 .1,23,714 17.0%
] ] .6,991 \ ],
.24,730 \ ] .91,993 ]

5: ] -
(. )
. ]
.
]
1 \ ]
6990.72
5.7%
2 \ ]
24730.26
20.0%
3 ]
91992.93
74.3%
4 (1+2+3)
123713.91
100.0%
(%)
17.0%
.31.03.2013 ] ( ]
] )
6: ]
(. )
.

%
1
7528 (20.3%)
6.1%
2 -
19621 (18.7%)
15.9%
3
32332 (18.6%)
26.1%
4
64233 (15.3%)
51.9%
5 (1+2+3+4)
123714 (17.0%)
100.0%
() \
3.2
18.2% ]
.15,454 ] 31.03.2012
.84,684 31.03.2013
.1,00,138
18
7:
(. )
31.03.2012 31.03.2013
1.
1372.91 1848.94 476.03
2. (2.1 2.4)
83311.04 98288.81 14977.77
2.1
( )
12458.53 16450.54 3992.01
2.2
13132.44 16862.64 3730.20
2.3 ( ) 11300.72 14327.95 3027.23
2.4 46419.35 50647.68 4228.33
(1+2)
84683.95 100137.75 15453.80
] 27026.96 35132.02 8105.06
3.2.1
30.0% -- ]
31.03.2013 .35132.02 --
.8105.06 41.29%
8: (31.3.2013 )
( )
2012 -13
1. (2 6)
35132.02
2
16450.54
3.
12249.92
4.
2.68
5.
1343.05
6. ( )
5085.83

I. (%)
41.29%
II. (%)
19.33%
3.2.1.1
32.04% -- ]
.16450.54 -- .3992.01
19.33% ]
17.02%
3.2.1.2 (\])
2,26,873
.3394.74
3.2.2 ()
38.44%
] .12249.92
.3401.39
3.2.3 {
{ .9997.24
{ 11.75%
Table 7: Classification of Advances portfolio
2.8 DIVIDEND
(Rs. in Crore)
The Board of Directors of the Bank recommended a Dividend

of 50% for the financial year 2012-13.
Category
3. BUSINESS REVIEW
1. Food Credit
The Total Business (Total Deposits plus Gross Bank Credit)

of the Bank registered a growth rate of 17.5%, up from
Rs.1,90,535 Crore as on 31.03.2012 to Rs.2,23,933 Crore as
on 31.03.2013.
2. Non-Food Credit (2.1 to 2.4)
83311.04
98288.81 14977.77
2.1 Advances to Agricultural

Sector (Excl. RIDF)
12458.53
16450.54
31.03.2012 31.03.2013 Variance

1372.91
1848.94
476.03
3992.01
2.2 Advances to MSME Sector
13132.44
16862.64
3730.20
3.1 Aggregate Deposits
2.3 Retail Credit (incl. DLs)
11300.72
14327.95
3027.23
Aggregate Deposits (excluding inter-bank deposits) went up

from Rs.1,05,762 Crore as on 31.03.2012 to Rs.1,23,714
Crore as on 31.03.2013, registering a growth rate of 17.0%.
Aggregate Deposits comprised of Current Deposits of
Rs.6,991 Crore, Savings Deposits of Rs.24,730 Crore and
Term Deposits of Rs.91,993 Crore.
2.4 Large Industries & Other

Advances
46419.35
50647.68
4228.33
GROSS BANK CREDIT (1+2)
84683.95
Of which, Lending to Priority sector
27026.96
Amount Percentage of
Aggregate
Deposits
Current Deposits
6990.72
5.7%
Savings Bank Deposits
24730.26
20.0%
Term Deposits
91992.93
74.3%
TOTAL (1+2+3)
123713.91
100.0%
Growth rate over

previous year (%)
Table 8: Priority Sector Lending (as on 31.03.2013)

(Rs.Crore)
Category
17.0%
Rural
Amount
% to total
7528 (20.3%)
6.1%
Semi-Urban
19621 (18.7%)
15.9%
Urban
32332 (18.6%)
26.1%
Metro
64233 (15.3%)
51.9%
TOTAL (1+2+3+4)
1. Priority Sector Advances (2 to 6)
35132.02
2. Agriculture Loans
16450.54
3. Micro and Small Enterprises
12249.92
123714 (17.0%)
2.68
5. Educational Loans
1343.05
6. Housing Loans (including indirect finance)
5085.83
Memo items
(Rs. in Crore)
2012 -13
4. Micro Credit
Table 6: Area-wise classification of Aggregate Deposits
Category of
Branches
8105.06
Priority Sector Advances of the Bank stood at Rs.35132.02

Crore as at the end of March 2013, registering a growth of
30.0% on Y-o-Y basis. The absolute increase in Priority
Sector Advances on Y-o-Y is Rs.8105.06 Crore. Priority
Sector Advances constitute 41.29% of ANBC.
Area-wise distribution of Aggregate Deposits (Total Deposits

less Inter-Bank Deposits) as on 31.03.2013 is set forth in the
following Table.
Sl.
No.
35132.02
3.2.1 Priority Sector Lending
Table 5: Category-wise classification of Aggregate Deposits

(Rs. in Crore)
Sl. Type of Deposits
No.
100137.75 15453.80
I. Priority Sector Advances (%)
41.29%
II. Agriculture Advances (%)
19.33%
3.2.1.1 Credit to Agriculture

The Total Agricultural Advances of the Bank were at
Rs.16450.54 crore, registering a growth of 32.04% on Y-o-Y
basis. The absolute increase on Y-o-Y is Rs.3992.01 crore
Agricultural advances constitute 19.33% of ANBC whereas
Direct Finance to Agriculture alone is 17.02% of ANBC.
3.2.1.2 Lending to Self Help Groups (SHGs)
Bank covered a total number of 2,26,873 Self Help Groups
with outstanding financial assistance of Rs.3394.74 crore.
100.0%
Note: Figures in ( ) indicate annual growth rate over the

previous year
3.2.2 Lending to Micro & Small Enterprises (MSE)

The Total Advances to Micro & Small Enterprise of the Bank
were at Rs.12249.92 Crore registering growth of 38.44% on Yo-Y basis. The absolute increase on Y-o-Y is Rs.3401.39 crore.
3.2 Gross Bank Credit

For the Financial Year ended 31.03.2013, Bank registered a
growth rate of 18.2% in Gross Bank Credit over the previous
year adding Rs.15,454 Crore during the year, to reach
Rs.1,00,138 Crore as compared to Rs.84,684 Crore for the
Financial Year ended 31.03.2012.
3.2.3 Credit to Weaker Sections

Advances to Weaker Sections stood at Rs.9997.24 Crore.
The Weaker Section Advances, as a percentage to ANBC,
stood at 11.75%.
19

\

] 1000

]
[ ]
/
- ] / ]/
100 150
]
, ,
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3.2.4
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3.2.5 ]/]]
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.1124.01
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3.3

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.8849 .12,250
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[ ,

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2012 \, ,
, -I -II \

, , , ] [ ] 18

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- , /
, ] 2013

(]) ]
{
(
) %
31.03.2011
2980
137.44
31.03.2012
4212
1232
189.47 37.86%
31.03.2013
5697
1485
274.28 44.76%
3.4
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3
4
5
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7
8 ] ( )
9
10
20
31.03.2013
31.12.2012

% %
{ {
22.00% 16633.42 18.42%
15.00%
10.00%
10.00%
9.00%
7.00%
10.00%
5.00%
6.00%
5.00%
9486.41
8772.23
5921.93
4867.18
3090.96
2927.88
2570.21
2176.26
1782.11
58228.59
10.51%
9.72%
6.56%
5.39%
3.42%
3.24%
2.85%
2.41%
1.97%
3.2.4 Credit to Minorities
growth achieved is around three times to that registered

during the previous financial year. The customer centric
initiatives taken up by the Bank in retail loan products are well
received and accepted by the customers. Housing loans and
Car Loans are the major growth drivers during the year.
Credit extended to Minorities stood at Rs. 2794.38 crore,

constituting 7.95% of Priority Sector Advances.
3.2.5 Credit to SC/ST Borrowers
Total credit extended to SC/ST beneficiaries under Priority
Sector advances was at Rs. 1124.01crore.
The Bank has introduced a new variant in Gold loans

intended to meet the credit needs of Micro and Small
Enterprises in a hassle free manner.
3.2.6 Credit to Women
The rates of interest on Educational Loans are reduced and

over 1000 educational institutes are accredited by the Bank to
render credit services to the students admitted to these
institutes. The Bank made a policy of rewarding meritorious
students with concessional rates of interest on educational
loans for their further study. Educational loans are made
cheaper by 100 to 150 basis points for those who have
academic excellence at prequalifying public examination / top
rankers of state/national level entrance tests for admission to
professional/technical courses. Similar concessions are
allowed for those securing admissions in premier educational
institutes of the country like IIM, IIT, ISB, etc.
Total credit extended to Women beneficiaries was at

Rs.9791.62 Crore, which is 9.78% as against target of 5% of
Net Bank Credit.
3.3
Credit to MSME Sector
Growth of MSME Sector is vital for the economic

development of our country. Extending credit to this sector
has been a high priority for Andhra Bank for a long time.
Credit to Micro & Small Enterprises (Priority and Non Priority)
has grown by 47.51% y-o-y against the norm of 20%. Out of
this, credit to Priority Sector stood at Rs.12,250 Crore against
Rs.8,849 Crore during previous year i.e., a y-o-y growth of
Rs.3,401 Crore (38.4%).
3.5 Advances Industry wise Exposure
As part of Corporate Governance and with an objective of

increasing customer convenience, online filing and tracking of
loan applications has been introduced in our Bank. It provides
efficient and convenient services to the customers and brings
greater transparency in the processing of loan applications and
allows tracking the status of such applications.
Bank has loan exposure to various sectors like Power,

Housing Loans, NBFCs, Iron & Steel, textiles, etc. Exposure
to top 10 industries constitutes 58.1% of gross bank credit,
signifying a diversified loan portfolio.
Table 9: Industry wise Exposure of Advances
(Rs. in Crore)
With an aim to improve the credit off-take substantially and to

improve the quality of advances under SME sector, we have
opened SME centralized Processing Cells at five places in
Chennai, New Delhi, Kakinada, Hyderabad I Zone and
Hyderabad II Zone in the middle of October 2012.
Sl.
No.
There are 18 Specialized MSME Branches operating in the

states of Andhra Pradesh, Orissa, Tamil Nadu, Punjab and
Chattisgarh. To tap the potential in MSME sector, three more
branches are identified as Specialized MSME Branches viz.
Rajam Branch in Andhra Pradesh, Red Hills Branch in Tamil
Nadu and Jalandhar Branch in Punjab.
POWER
22.00%
16633.42
18.42%
HOUSING LOANS
(includes Residential
Mortgages & Indirect
Finance to Housing
Intermediaries)
15.00%
9486.41
10.51%
We have opened Small B Branch in Madhapur, Hyderabad in

the month of January 2013 as per Government of India
guidelines with a view to provide debt assistance for
Innovative Enterprises / Start ups.
Industry
Ceilings
Actual
as % of
Fund
Total
based
Advances exposure
of previous
as on
Quarter 31.03.2013
Exposure
as % of Total
Advances
of Previous
Quarter i.e.
31.12.2012
NBFC
10.00%
8772.23
9.72%
The Bank is giving thrust for collateral free lending under the
segment consisting of Micro and Small Enterprises coming
under Priority Sector category and covered under Credit
Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE) scheme.
IRON & STEEL
10.00%
5921.93
6.56%
TEXTILES
9.00%
4867.18
5.39%
COMMERCIAL REAL
ESTATES
7.00%
3090.96
3.42%
Year
No of
A/Cs
CONSTRUCTION &
CONTRACTORS
10.00%
2927.88
3.24%
31.03.2011
2980
31.03.2012
4212
1232
189.47
37.86%
ENGINEERING
(HEAVY&LIGHT)
5.00%
2570.21
2.85%
31.03.2013
5697
1485
274.28
44.76%
RICE MILLS
6.00%
2176.26
2.41%
10
DRUGS &
PHARMACEUTICALS
5.00%
1782.11
1.97%
Increase in
Amount
number of A/Cs (Rs Crore)
% Growth
in Amount
137.44
3.4 Retail Lending

Retail credit of the Bank registered an impressive growth rate
of 26.8% during the year and stood at Rs.14,328 Crore. The
Total
21
58228.59
30%
] 44% ]
26%
] .142.50
4.1.2.
{
- 25%
] ] 310 (1 = .16.75
.519.25 ) 77.50 (
.133.77 )
() \ 11.07.2012
.31.03.2013
.203.07
4.1.3 \]
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, ] ,
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4.1.4 \] (-)
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4.2 ]
49
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] ]
] ] ]
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2012-13 .25,148.28
] 31.03.2012 . 4,38,338
31.03.2013 .3,38,153 -
.31.03.2013 .3570
5.
,
\
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31.03.2013
5217 9507
]
3175 ]
3.6
31.03.2013 ]
10: 31.03.2013 ]
.
%
1
10989 (31.2%)
11.0%
2
-
13886 (22.4%)
13.9%
3
21536 (17.0%)
21.5%
4
53727 (15.4%)
53.6%
5
100138 (18.2%) 100.0%

() \ .
4.
{
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]- -

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[ ] . \
]
.31.03.2013 , ( ) 27.01%
31.03.2012 .26,629 [ .37,632
.31.03.2013 .31097 , ]
() 24.62% ]
2011-12 .1973.53 [ 2012-13 .2478.89
2011-12 120.91 201213 .185.46
11: ()
(. )
2011-12 2012-13 (%)
1.
26727.92 32973.62 23.36%
2.
10.36
8.16 -21.24%
3.
212.85 326.43 53.36%
4. \
705.97 1338.80 89.63%
5. /
199.29 307.27 54.18%
6.
1772.52 2678.12 51.09%
(1 to 6)
29628.91 37632.40 27.01%
4.1
4.1.1
]

22
3.6 Area-wise position of Gross Bank Credit
30% while Bank of Baroda holds 44% and Legal and General
Plc holds 26% stake. Both the banks have commenced sale
of insurance policies through their branch outlets. Our
investment in the life insurance venture is Rs 142.50 Crore.
The population group wise distribution of Credit as on

31.03.2012 is as under:
Table 10: Gross Bank Credit- Population Group Wise as
on 31.03.2013
Sl. No.
Category
Amount
Rural
10989 (31.2%)
11.0%
Semi-Urban
13886 (22.4%)
13.9%
Urban
21536 (17.0%)
21.5%
Metro
53727 (15.4%)
53.6%
TOTAL
100138 (18.2%)
100.0%
4.1.2 Banking subsidiary in Malaysia

The Bank, along with Bank of Baroda and Indian Overseas
Bank, has entered into a tie up for setting up a banking
subsidiary in Malaysia. The Banks stake in the venture is
25%, amounting to RM 77.50 Million (book value Rs.133.77
Crore), in a total subscribed capital of RM 310 Million
(approximately Rs.519.25 Crore @ 1 RM = Rs.16.75).
% to total
Note: Figures in ( ) indicate annual growth rate over the

previous year
The joint venture viz. INDIA INTERNATIONAL BANK

(MALAYSIA) BHD commenced business on 11.07.2012. The
joint venture bank has a business of Rs.203.07 Crore at the
end of 31.03.2013.
4. INVESTMENTS
4.1.3 United Stock Exchange of India Ltd

United Stock Exchange of India Ltd is promoted by a
consortium of banks, of which our bank is also a partner. The
other major banks are Canara Bank, Bank of Baroda,
Allahabad Bank, Bank of India, Indian Overseas Bank and
Oriental Bank of Commerce. The Banks Investment in
United Stock Exchange of India Ltd. is Rs 3 Crore.
In terms of RBI guidelines, the Bank is required to invest in

SLR securities to the extent of 23% of NDTL. Banks
investment decisions are based on risk-return trade-off and
bank is scrupulously following the regulatory and internal
guidelines. Statutory prescriptions relating to Cash Reserve
Ratio (CRR) and Statutory Liquidity Ratio (SLR) are
complied with and being monitored on a continuous basis.
Risk Management in treasury operations has been
strengthened further by undertaking stress testing and back
testing of the investment portfolio at quarterly intervals,
besides daily monitoring of Duration and Value-at-Risk
(VaR). External rating migration of the bonds and debentures
portfolio is also being monitored on quarterly basis.
4.1.4 MCX Stock Exchange Ltd. (MCX-SX)

The Banks investment in the equity of MCX-SX is Rs 25
Crore. The Exchange commenced trading in Equity Cash
and Equity Derivatives from February 11, 2013.
4.2 Treasury & Forex Business
The Bank is an 'Authorised Dealer', to deal in foreign
exchange business through 49 designated B category
branches of the Bank. The Bank has speed remittance
arrangements with Three Exchange Houses based in Gulf.
As on 31.03.2013, the Investments (net of depreciation)

increased by 27.01% and stood at Rs 37632 Crore, up from
Rs 29,629 Crore as on 31.03.2012. SLR maintained as on
31.03.2013 was Rs 31097 Crore, which constituted 24.62 %
of Net Demand and Time Liabilities (NDTL). Interest income
from investments increased from Rs 1,973.53 Crore in 201112 to Rs 2475.76 Crore in 2012-13. Profit on sale of
investments stood at Rs 188.93 Crore during 2012-13, while
it was Rs 120.91 Crore during 2011-12.
Systems have been put in place for management of country

risk, exchange risk and other foreign exchange risks. The
country risk exposures for single country risk limit and
aggregate risk limits for the group of countries under each risk
category are fixed and are being monitored on daily basis.
During the year 2012-13, the Bank recorded a merchant
turnover of Rs.25,148.28 Crore in Forex. The bank achieved
Inter-Bank turnover of Rs.3,38,153 Crore as on 31.03.2013
compared to Rs 4,38,338 Crore as on 31.03.2012. Export
finance of the Bank stood at Rs. 3570 crore as on
31.03.2013.
Table 11: Classification of Investments

(Rs. in Crore)
1. Government Securities
2. Other Approved Securities
2011-12
2012-13
Var (%)
26727.92
32973.62
23.36%
10.36
3. Shares
212.85
326.43
53.36%
4. Debentures & Bonds
705.97
1338.80
89.63%
5. Subsidiaries and / or Joint Ventures
199.29
307.27
54.18%
6. Others
TOTAL (1 to 6)
5. CREDIT CARD BUSINESS
8.16 -21.24%
1772.52
2678.12
51.09%
29628.91
37632.40
27.01%
Wide publicity programme was initiated through various Print

and Electronic media on Platinum Credit Cards, Gift Cards
and International Travel Cards. The awareness through
News Paper Advertisement, FM Channel broadcasting,
Commercial Ad through TV, Hoarding display at select places
etc., has resulted in good inflow of new card applications at
the Branches.
4.1 Strategic Investments
Performance during the Financial Year ended 31.03.2013
4.1.1 Joint Venture Insurance
Our Bank is having Joint venture in insurance with Bank of

Baroda and Legal and General Plc of UK christened
IndiaFirst Life Insurance Co. Ltd. Our stake in the venture is
The Division has issued 9,507 new Credit Cards as

against 5217 cards during the previous Financial Year.
3,175 New Platinum Credit Cards have been issued during

the year.
23
.344 31.03.2013
.430 [
7.53% \ 6.44%
] 7,24,216

]
.4.95 , ] ]

\
\ \
] ]
, \
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1301
, 6,20,588 ,
] ] ] ,
03.11.2012 .50

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, 100%

.25.09.2012 , 31 2012
[ \

740
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1074

2012-13 36
13 , 19 , 1
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7. -
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2009
\ 30% ]
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2012-13 52864
.125.20
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158
24
The Credit Card usage has increased from Rs.344 Crore

during the previous year to Rs.430 Crore for the Financial
Year ended 31.03.2013.
based bidding system of NSE / BSE, unblock when the basis

of allotment is finalized and transfer the amount for allotted
shares to the Bank account of the issuer.
NPA on card dues declined from 7.53% during the

previous year to 6.44 % in the current year.
The ASBA facility is also available for New Fund Offers of

Mutual Funds.
On International Travel prepaid cards issued during the

year, an amount of USD 7,24,216 was loaded.
Govt. Prepaid Cards issued during the year to various

beneficiaries was loaded with Rs 4.95 Crore, which is
interest free CASA fund to the Bank.
In view of the inherent benefits of ASBA to investors, issuers

and the market, w.e.f. May 1, 2010, the reach of ASBA was
subsequently expanded to QIB bidders also on 100%
payment of application money including various other
investor categories like High Net Worth Individuals,
Corporate Investors, etc.
NEW PRODUCTS & SERVICES INTRODUCED
As per SEBI circular dated 25.09.2012, the Bank has enabled

the ASBA facility in all the Metro and Urban Branches of the
Bank numbering to 740 Branches towards implementation of
first phase of increasing the designated branches for ASBA by
31st October 2012. Further, in the second phase of
implementation, the Bank has provided the facility in all the
Semi-Urban and Rural Branches as on 18.12.2012 totalling to
1074 Branches. The Bank has also provided the facility in all
the New Branches opened thereafter.
The highly secured EMV Chip card implementation

process is successfully completed. The chip card is a PIN
based card and shall be issued to the select customers.
As per RBI direction, various Risk mitigation measures

under Card issuance and card acquiry aspects are
adopted to prevent fraudulent usage and misuse of stolen
cards. The VAA/VRM solution of VISA is introduced for
continuous monitoring process.
Reward Points programme on Merchant usage of cards is

introduced. The 25% increase in card usage during the
year shows that the features viz. transparency and auto
credit of cash back, has been welcomed by all the
cardholders.
The Bank has handled 36 issues through ASBA facility during

the Financial Year 2012-13. Out of the same, 13 are IPOs, 19
are FPOs, 1 Rights Issue, 2 NFOs and 1 issue under
Institutional Private Programme.
The income eligibility criterion is relaxed for Platinum card

issuance from Rs.5.00 lakhs to Rs.3.00 lakhs.
Titanium Credit Card, a secured card is initiated for launch.
The Bank has been constantly focusing on augmenting noninterest income through diversification of income streams by
taking up marketing of life and non-life insurance products,
Mutual fund products, Depository Services, Direct taxes,
Commercial taxes, Municipal taxes, utility payments etc.
Bank is utilizing Marketing Officers specifically for spreading
awareness of our products and services and also for
marketing our products.
7. BANCASSURANCE & FEE-BASED PRODUCTS
6. MERCHANT BANKING SERVICES

The Bank acted as a Paying Banker for payment of dividend
warrants of three companies.
A Shareholders and Investors Grievances Cell is functioning
as a part of the Division. The Bank has received 32
complaints and 5745 requests during the year. All the
complaints and requests have been redressed by the Bank.
7.1 Insurance
The Bank along with Bank of Baroda and Legal & General
Group Plc of UK has formed a joint venture life insurance
company named India First Life Insurance Co Ltd and it was
formally launched in the month of March 2010. The Bank has
shareholding of 30% in the company, while Bank of Baroda
has 44% and 26% is held by Legal and General Group Plc.
During the FY 2012-13, bank sold 52864 policies and
collected premium of Rs 125.20 Cr.
The Share Transfer committee of the Bank met three times

during the year and confirmed the 1301 share transfers
totalling to 6,20,588 shares.
The Bank has tied up with M/s TATA AIG General Insurance
Company Limited towards Corporate Guard for Directors
and Officers for an amount of Rs.50 Crore for a period of one
year with effect from 03.11.2012.
7.2 Mutual Fund Business
Application Supported by Blocked Amount (ASBA):
The Bank is having tie ups with Mutual Fund companies,

namely, UTI Mutual Fund, SBI Mutual Fund, Principal Mutual
Fund, Tata Mutual Fund, Sundaram Mutual Fund, Reliance
Mutual Fund, Birla Sun Life Mutual Fund, Fidelity Mutual
Fund, Kotak Mutual Fund, LIC Mutual Fund, Baroda Pioneer
Mutual Fund and ING Vysya Mutual Fund.
SEBI had introduced a new mode of payment in public and

rights issues called Application Supported by Blocked
Amount (ASBA), wherein the application money remains
blocked in the Investors bank account till finalization of basis
of allotment in the issue.
7.3 Depository Services
ASBA process facilitates retail individual investors bidding at

cut-off, with single option, to apply through Self Certified
Syndicate Banks (SCSBs) in which the investors have Bank
accounts. SCSBs are those Banks which satisfy the
conditions laid down by SEBI. SCSBs would accept the
applications, verify the application, block the funds to the
extent of bid payment amount, upload the details in the web
Bank is offering depository Services to the public under the

brand name of AB Demat. The Bank is a Depository
Participant (DP) with Central Depository Services (India)
Limited (CDSL) as well as with National Securities
Depository Limited (NSDL). 158 branches of the Bank are
authorized to open demat accounts.
25
,
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2012-13 , 155 (2
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31.03.2013 , 1867 , 13 , 38
1207 , ] 25 ] 3
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7.4
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2012-13
524 . ]
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55 101 83.7%
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98.9% ] 3.96
7.88 [
26,407 [
1,68,453
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26
7.4 Retail Sale of Gold Coins

Bank is selling denominations of 2, 4, 5, 8, 10 Grams in round
shape and 20 Grams and 50 grams in ingot shape. During the
FY 2012-13 a total of 524 Kgs of Gold coins were sold and
commission of Rs. 5.40 Crores is earned.
Printing of the additional details like MICR Code, IFSC

Code of the Branch on front page of customers
passbook.
Printing of Acronyms on Statement of Account.
Sending of SMS alerts when an account is about to

become Inoperative.
SMS alerts when cheques are returned in inward

clearing.
8. IT INITIATIVES
CDM: Bank has installed 10 Cheque Deposit Machines

during the year.
Bunch Note Acceptor: In order to facilitate the customers

to deposit cash through machines, Bank has deployed
Bunch Note Acceptor machines at e-banking centres and
planning to deploy more machines in the coming year.
Passbook Printing Kiosks: Bank has deployed 100 selfservice passbook printing kiosks that enable the customers
to print the passbooks on their own during the year.
NEFT: During the year transactions under National

Electronic Fund Transfer (NEFT) have gone up
substantially by 83.7% from 55 lakhs to 101 lakhs.
RTGS: The Real Time Gross Settlement (RTGS)

transactions increased from 10.84 lakhs to 13.52 lakhs,
recording a growth of 24.7%.
Internet Banking: The Internet Banking transactions

increased from 3.96 lakhs to 7.88 lakhs, recording a
growth of 98.9%.
Mobile Banking: The mobile banking transactions have

increased to 1,68,453 from 26,407 transactions.
IMPS (IMmediate Payment Service) through P2A (Person

to Account): Bank has launched IMPS P2A funds transfer
facility using beneficiary account number as IFSC code.
Unclaimed Deposits/Inoperative Accounts: Bank has

placed the details of unclaimed deposits/inoperative
accounts (accounts not operated during last 10 years) in
Banks Website with a provision for search option.
Reserve Bank of India Working Group Recommendations

on Information Security, Electronic Banking, Technology
Risk Management & Cyber Frauds:
Board level IT Strategy Committee was constituted to

advice on strategic direction on IT.
Bank has designated a Chief Information Security Officer

(CISO) in SM-V cadre reporting to General Manager
(Risk) to oversee Information Security activities.
Bank has implemented a robust IT policy and Information

System Security policy which are in line with the industry
best practices. These policies are being reviewed
periodically and suitably strengthened in order to address
emerging threats.
IT Security consultant was appointed to guide the Bank in

the implementation of Industry best IT Security Practices.
The Data Centre audits are conducted periodically by

external agencies.
IMPS through ATM: Bank has extended the IMPS facility to

customers through our Banks ATMs also.
IMPS using USSD: Bank has enabled IMPS on USSD

(Unstructured Supplementary Service Data) platform also
in addition to the existing SMS and application (mPAY)
modes.
In order to have an assurance on the Fire Safety features

available at Data Centre, Bank has got the Fire Safety
Audit of Data Centre conducted by an external agency.
Employee awareness trainings/tests conducted to ensure

security and increase awareness among staff.
Security features in Internet Banking: Bank has enhanced

security features for Internet Banking transactions by
introducing One Time Password (OTP) for financial
transaction, One time Access Code (OAC) and cooling
period for addition of third party payee.
Business Continuity Management System (BCMS):
Bank has built a Disaster Recovery Site in a different

seismic zone with redundancy built in every single point of
failure to ensure uninterrupted banking service delivery to
customers.
Email Alerts for ATM & POS Transactions: In addition to

existing SMS alerts, Bank is sending transaction alerts
through e-mail to customers for ATM and POS
transactions irrespective of the amount of transaction.
Same facility has also been extended to Credit Card
Transactions.
Bank is regularly conducting DR drills on quarterly basis

where in all the critical applications of the Bank are
functioning on DR centre infrastructure.
CTS: Bank has implemented CTS Southern grid solution

and covered all the MICR centres in the states of
Tamilnadu, Karnataka, Kerala, Andhra Pradesh, West
Bengal and Union Territories of Pondicherry and
Chandigarh covering 443 branches.
Damodaran Committee Recommendations on Customer

Service in Banks: Bank has provided the following
features suggested by Damodaran Committee, to the
customers during the year.
9. NETWORK EXPANSION
During the Financial Year 2012-13, Bank opened 155
Branches (including up-gradation of 2 Extension Counters
and 1 satellite office) and added 151 ATMs. With this, as on
31.03.2013, Bank had 3125 Delivery Channels consisting of
1867 Branches, 13 Extension Counters, 38 Satellite Offices
and 1207 ATMs spread over 25 States and 3 Union
Territories. The Bank has 55 Specialized Branches catering
to the needs of the specific segments of clientele. The Bank
also has two Representative (overseas) Offices at Dubai
(U.A.E) (opened in May 2006) and New Jersey (U.S.A)
(opened in November, 2008).
27
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.
524
28.1%
2
-
528
28.3%
3
523
28.0%
4
292
15.6%
1867
100.0 %
31.03.2013 55 : 14:
.
1

18
2

3
3
-
6
4

4
5

4
6

4
7

8
8

2
9

1
10 {
1
11
3
12
1
55
9.1 - ]
] 31.03.2013 268
, ]
31.03.2013 14.35 %
10. :
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28
Table 13: Population Group Wise classification of

Branches
Sl.
No.
Category
Number
standards for presentation of credit proposals, financial

covenants, rating standards and benchmarks, delegation
of credit approving powers, prudential limits on large credit
exposures, asset concentrations, standards for loan
collateral, portfolio management, loan review mechanism,
risk concentrations, risk monitoring and evaluation, pricing
of loans, provisioning, regulatory/legal compliance, etc.
% to total
Rural
524
28.1%
Semi-Urban
528
28.3%
Urban
523
28.0%
Metro
292
15.6%
TOTAL
1867
100.0 %
The Bank has in place comprehensive risk rating system

for various categories of exposures. Bank has established
a rating cell for assigning the internal ratings for all
exposures of Rs 5 Crore and above. The rating cell
validates the internal rating given by the branch/ Zonal
office and specify a Risk Based Price (for above Rs 25
Crore exposures). The rating model was subjected to
external validation by CRISIL Risk & Infrastructure
Solutions Ltd.
The rating cell would ensure comprehensive rating

coverage, integrity of rating process and proper data
maintenance.
The Bank utilizes industry reports from CRISIL and the

industry risk score service from CRISIL Research.
As on 31.03.2013 the Bank had 55 Specialized Branches,

as detailed hereunder:
Table 14: Specialized Branches
S.
No.
Category of Specialised Branches
Specialised SME Branches
Specialised Argicultural Finance Branches
Specialised Agri - Hitech Branches
Specialised Housing Finance Branches
10.1.2 Market Risk
Specialised Personnel Banking Branches
Specialised NRI Branches
Specialised Retail Credit Branches
Corporate Finance Branches
Auto-Tech Finance Branch
10
Overseas Branch
11
Asset Recovery Management Branch
12
Small B Branch
Market risk implies possibility of loss arising out of adverse

movements of market determined rates and prices. The
objective of market risk management is to avoid excessive
exposure of your Banks earnings and equity to such losses
and to reduce your Banks exposure to the volatility inherent
in financial instruments such as securities, foreign exchange
contracts, equity and derivative instruments, as well as
balance sheet or structural positions. The Bank has in place a
well-defined Market Risk Management Policy and
organizational structure for market risk management
functions. The Bank manages market risk through AssetLiability Management (ALM) policy and investments/forex
policy.
TOTAL
No. of
Brs.
18
55
9.1 Presence in Minority-Dominated Districts
A high level executive committee, namely, Asset-liability

Committee (ALCO) oversees the ALM in the Bank and
deliberates on liquidity and interest rate scenario in the
market and decides upon the pricing of various products.
ALCO regularly monitors the identification, measurement,
monitoring and mitigation of market risk in liquidity, interest
rates, equity and forex areas.
At the end of 31.03.2013 we are having 268 branches in

Minority dominated Districts. Of the Bank's total network
across the country, the percentage of Branches in minority
dominated Districts stood at 14.35% as on 31.3.2013.
10. QUALITATIVE ASPECTS:
10.1 Risk Management
The liquidity risk is measured and managed through gap

analysis for maturity mismatches based on residual maturity.
For assets and liabilities, which are of non-maturity nature,
Bank is conducting behavioural studies and factoring the
observations in the gap analysis. The behavioural study
findings are subjected to back-testing and validated
regularly. Prudential limits are fixed for net gaps and also for
cumulative gap up to one year and these limits are measured
and monitored regularly. Liquidity profile of the Bank is also
measured regularly through various liquidity ratios and
monitoring of the same is done with the help of prudential
limits fixed thereon.
The Bank has put in place a comprehensive Integrated Risk

Management Policy for the management of credit risk, market
risk and operational risk as per the guidance notes/guidelines
of RBI. Accordingly, all the risk management functions, viz.,
credit Risk, Asset-Liability Management (ALM), Mid-office of
the domestic treasury and operational risk functions have been
integrated. The Integrated Risk Management Policy of the
Bank is being reviewed every year in tune with the notifications
given by the RBI.
10.1.1 Credit Risk
The Bank has constituted Credit Risk Management

Committee for analyzing all issues relating to credit
matters and for recommending to the Board.
The interest rate risk is monitored on a regular basis through

Maturity gap analysis and Duration gap analysis. Tolerance
limits have been fixed for impact on net interest income (NII)
due to adverse changes in interest rates. To measure the
The Bank has a well defined Loan Policy duly approved

by the Board. The Bank has formulated policies on
29

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(vii)+(ii)
11.5
30
impact of interest rate changes on Banks equity, duration

gap analysis is done and prudential limit is set for modified
duration of equity. Modified duration of equity is within the
prudential limits set for this purpose. VaR and duration
analysis are used for measuring market risk including
treasury operations. The Interest Rate Risk in Banking Book
(IRRBB) is also being assessed on monthly basis.
and HTM portfolio under investments. Bank is gearing up to

move over to advanced approaches of credit risk. In this
regard, Bank has developed a Credit Risk Rating Model
(CRRM) with the consultancy assistance of National Institute of
Bank Management (NIBM), Pune. This model is further
strengthened internally by making it as a WAN (Wide Area
Network) based CRRM model so that it is accessible from any
of the locations of the bank. This model is capable of providing
transition matrices and default probabilities (Probability of
default) and would help the Bank in moving over to the
Advanced Measurement Approach in future. Bank is working
towards more risk sensitive measures like Risk Adjusted
Return on Capital (RAROC), Risk Based Pricing (RBP).
Market Risk: The Bank is using the Standardized duration
method for computing capital charge for market risks
(investments in HFT and AFS categories) as per RBI guidelines.
Operational Risk: Bank has provided capital for operational
risk as per the Basic Indicator Approach (BIA) with effect from
31.03.2009. Bank has already applied to RBI for moving over
to The Standardized Approach (TSA). For this, the process of
segregating the gross income into eight business lines to
arrive at capital charge is already over. Bank is also working
towards meeting the requirements of the Advanced
Measurement Approach (AMA).
10.1.5 Banks compliance with Basel II
In compliance with the PillarII guidelines of the RBI under
Basel II framework, the Bank has formulated a Policy of
Internal Capital Adequacy Assessment Process (ICAAP) to
assess internal capital in relation to various risks that it is
exposed to. Stress Testing and scenario analysis are used to
assess the financial and management capability of the Bank
to continue to operate effectively under exceptional but
plausible conditions. The bank is calculating the
concentration risk on a quarterly basis to assess the portfolio
level risks based on sectoral, geographical and borrower
wise concentration. The bank is using statistical parameters
like Herfindahl-Hishman Index (HHI), Gini Coefficient, and
Rosenbluth Index for determining the Credit Concentration
Risk. Bank has a Board-approved Stress Testing Policy
describing various techniques used to gauge their potential
vulnerability and its capacity to sustain such vulnerability.
10.1.6 Banks preparedness to Basel III
RBI has introduced in its Basel III guidelines, enhanced
capital requirements:
Other market related risks to which any bank is exposed are

foreign exchange risk on foreign currency positions, liquidity,
or funding risk, and price risk on trading portfolios. The Bank
has clearly articulated policies to control and monitor its
treasury functions. These policies comprise management
practices, procedures, prudential risk limits, review
mechanisms and reporting systems. These policies are
revised regularly at fixed intervals in line with changes in
financial and market conditions.
10.1.3 Operational Risk
Management of Operational Risk is a part of the Integrated
Risk Management Policy and the Bank has focused
attention for the management of Operational Risk in the light
of RBI guidelines. Operational Risk Management
Department is responsible for coordinating all the operational
risk management activities of the bank which includes
building an understanding of the risk profile, implementing
tools related to operational risk management, and working
towards the goals of improved controls and lower risk.
Operational Risk Management Committee [ORMC] ensures
implementation of the Operational Risk policies and monitors
the compliance with limits approved by the Board/Risk
Management Committee [RMC].
The Bank has been computing capital charge for operational
risk by adopting Basic Indicator Approach (BIA) as
stipulated by the RBI. To move towards advanced
approaches for Operational Risk Measurement the Bank has
put in place the following:
Operational Risk Management Policy which covers the

objectives, identification, assessment, monitoring and
control of operational risk loss incidents.
Historical Loss Data is being created for 5 years. We have

a system in place to track the Operational Loss events at
branch level.
Business Line Mapping Policy is framed and approved by

Board.
Capital Charge on Operational Risk is being calculated

using The Standardized Approach (TSA) on parallel basis.
Bank sought permission from RBI to move over to TSA

from BIA for calculation of capital charge on Operational
Risk. We are yet to receive the permission from RBI.
Regulatory Capital
As % to RWAs
(i) Minimum Common Equity Tier 1 ratio
5.5
(ii) Capital conservation buffer (comprised of

Common Equity)
2.5
10.1.4 Preparation for moving over to Advanced

Approaches
(iii) Minimum Common Equity Tier 1 ratio plus

capital conservation buffer [(i)+(ii)]
8.0
As per RBI guidelines, all commercial banks in India shall

follow the Standardised Approach for credit risk,
Standardized Duration Approach for market risk and Basic
Indicator Approach for operational risk under the New
Capital Adequacy Framework.
(iv) Additional Tier 1 Capital
1.5
(v) Minimum Tier 1 capital rario [(i)+(vi)]
7.0
(vi) Tier 2 capital
2.0
(vii) Minimum Total Capital Ratio (MTC) [(v)+(vi)]
9.0
Credit Risk: Bank at present is following Standardized

Approach for estimation of capital requirements for Credit Risk
(viii) Minimum Total Capital Ratio plus capital

conservation buffer [(vii)+(ii)]
11.5
31
, ] \

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31.03.2013 . 3,714
3.71% . 2.45%
. ] 31.03.2013 49.57% .
. 825 .
15 -]
( )
2011-12 2012-13
]
995.64 1798.01
]
1287.31 2741.67

484.94 825.19
]
1798.01 3714.49
]
755.85 2409.18
31 \ 2013 ]
16 ]
( )

*
1.
410.04
2.5%
2.
422.27
2.5%
3.
316.31
2.2%
4.
2422.56
4.8%
5.
143.31
6.5%
3714.49
3.7%
* %
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1985.74
373.50

1688.53
853.53

40.22
40.22
3714.49
1267.25
10.2.1 \
2012-13 165 ] . 4068.73
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1148 \ . 9692.56
10.2.2

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32
In addition to the above, RBI has introduced several other

measures of leverage and liquidity standards.
A minimum Leverage Ratio of 4.5% to curb the excess
leverage of banks balance sheet.
Liquidity standards by way of two liquidity ratios namely
Liquidity Coverage Ratio (LCR) and Net Stable Funding
Ratio (NSFR).
RBI has prescribed transitional arrangements so as to
conform to Basel III guidelines in a phased manner. The LCR
requires a bank to hold sufficient high-quality liquid assets to
cover its total stressed net cash outflows over 30 days. The
NSFR requires a bank to hold sufficient amount of stable
funds to meet the requirement of stable funding over a oneyear period of extended stress.
The bank is regularly calculating and monitoring the liquidity
ratios (LCR and NSFR) taking as reference the draft
guidelines issued by the RBI.
The leverage ratio is being calculated on a monthly basis and
is above the regulatory prescribed ceiling of 4.5%.
The banks Capital Adequacy at present is in conformity with
the transitional arrangements as prescribed by RBI.
However, to meet the growing business requirements, bank
may have to supplement capital funds, especially common
equity in later years.
10.1.7 Disclosure Policy
The Bank has a Disclosure Policy as per the disclosure
requirements contained in the circular issued by the Reserve
Bank of India on the implementation of the new capital
adequacy framework. The guidelines therein are adhered to
and compliance is reported to the Competent Authorities. Pillar
3 of Basel II, (i.e. market discipline) aims to encourage market
discipline by developing a set of disclosure requirements which
will allow market participants to assess key information on the
scope of application, capital, risk exposures, risk assessment
processes, and hence the capital adequacy of the Bank. The
Pillar3 Disclosures are published on quarterly and half yearly
basis on the Banks website plus a year-end disclosure as on
March of every year. The Pillar 3 year-end disclosures are also
published in the Banks Annual Report apart from being
available on the Banks website.
10.2 Management of Asset Quality
Gross NPAs of the Bank stood at Rs.3,714 Crore as on
31.03.2013. Gross NPAs as a percentage to Gross
Advances stood at 3.71% while Net NPAs as a percentage to
Net Advances stood at 2.45%. The Provision Coverage of
NPAs as on 31.03.2013 was 49.57%.
Total reduction in NPA accounts amounted to Rs.825 Crore.
Table 15: Position of Non-Performing Assets
(Rs. in Crore)
2011-12
2012-13
Gross NPAs at the beginning of the year
995.64
1798.01
Additions during the year
1287.31
2741.67
Reduction during the year
484.94
825.19
Gross NPAs at the end the year
1798.01
3714.49
Net NPAs
755.85
2409.18
The segment-wise distribution of NPAs as on 31.03.2013 is as under:
Table 16: Segment-wise Non-Performing Assets

(Rs. in Crore)
Segment
Amount
% to Total
Advances*
I. Agriculture
410.04
2.5%
II. MSME
422.27
2.5%
III. Retail Credit
316.31
2.2%
2422.56
4.8%
IV. Large & Mid Corporate

V. Others
Total
143.31
6.5%
3714.49
3.7%
*NPA% to Advances indicates NPA to Advances of that segment.

Provisions held under different classes of NPAs are as under:
Table 17: Provisions held for Non-Performing Assets
(including floating Provisions)
(Rs. in Crore)
Nature of Asset
Amount
Sub-Standard Assets
1985.74
373.50
Doubtful Assets
1688.53
853.53
40.22
40.22
3714.49
1267.25
Loss Assets
Total
Provision
Held
10.2.1 Restructuring mechanism

During FY 2012-13, 165 accounts with outstanding of Rs
4068.73 Crore were restructured in terms of the restructuring
packages. The total balances in restructured accounts as at
the end of March 2013 stood at Rs 9692.56 Crore in 1148
accounts.
10.2.2 Lending Practices
The Bank had framed well defined Loan Policy Guidelines with
the approval of the Board. These guidelines are reviewed by
the Board at periodical intervals taking into account feedback
received from the field level functionaries, credit departments
at Head Office, competitive environment prevailing among the
banks, for accelerated credit growth envisaged in certain
business segments, marketing & development of new
products, Reserve Bank of India guidelines, Annual Policy
Statement of Reserve Bank of India.
Credit Committees have been constituted in the Bank at
Head Office and Zonal level for exercising sanctions of credit
proposals and suitable sanctioning powers have been
delegated to these committees in terms of directions of
Ministry of Finance. Further, based on feedback received
from field level functionaries, the delegated powers of
various sanctioning authorities are reviewed and revised to
reduce turnaround time in the sanction of credit proposals.
The loan review mechanism is further strengthened in the
Bank ensuring review of sanctions made by all functionaries
by higher committees. The Banks Monitoring Cell has been
reviewing all the sanctions with limits of over Rs.3 Crore on a
monthly basis and the details of stressed accounts, if any, are
being brought to the notice of the Top Management for taking
coercive action in time.
33
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34
The guidelines of the Bank on Loan Policy, Delegation of

Powers and Credit Monitoring Policy have been reviewed by
the Bank and a comprehensive booklet is released during the
year on 28.11.2012.
branches for on-site inspection and improving the quality, the

IS Audit Cell of Inspection & Audit Department is providing
various reports to the Inspectors of Branches immediately on
commencement of inspection.
10.2.3 Te c h n o E c o n o m i c Vi a b i l i t y (TEV) C e ll &

Syndication Desk
All the Branches subject to regular inspection were also

covered under IS Audit during 2012-13. Areas for Offsite
Surveillance Audit under CBS environment were also
identified and tools for OSS Audit covering identified areas
were developed. IS audit was also conducted for Credit Card
Division, purchases section in DIT and CTS (Cheque
Truncated System) at Chennai and New Delhi.
The Bank has a Technical Appraisal Cell (TAC) which is

independent of Credit Processing & Sanctioning
Departments. The Cell undertakes preparation of Project
Information Memorandum (PIM), conducting TechnoEconomic Viability (TEV) Study and Debt Arrangement
(Loan Syndication) for corporate clients. The Cell has earned
Fee based income of Rs.229.18 Lakhs during the Financial
Year 2012-13.
IS Audit Cell also conducted software audit in the following

areas: (a) Internet Banking, (b) Asset classification and (c)
use of SFMS (Structured Financial Messaging System) in
Inland Letters of Credit, Bank Guarantee Bills, etc.
Compliance Audit of ATM switch and Registration Authority
office in DIT was also conducted.
10.2.4 Credit Monitoring Cell

Credit Monitoring Cell of the Bank is reconstituted for both
Large and Mid Corporate Departments separately and
continues to monitor the accounts falling under the powers of
Head Office. This Monitoring Cell is exclusive and separate
from the Credit monitoring done by Credit Monitoring &
Review Department (CMRD) at Head Office.
IS Audit Cell also generates off site alerts for select 14

parameters. PML Cell of the department is reporting the
monthly Suspicious Transactions Report (STR) to FIU.
10.5 Compliance Policy
10.3 Management Information System
The Bank has in place a comprehensive Compliance Policy.

An executive of the Bank in the rank of Deputy General
Manager has been appointed as the Chief Compliance
Officer. As per the Policy adopted by the Bank, suitable
organizational structure has been laid down defining the
roles and responsibilities for Compliance Officers of various
departments and Zonal Offices. Compliance of statutory,
regulatory and internal guidelines of the Bank is the scope of
operation of the compliance function of the Bank. Suitable
reporting system is put in place to ensure effective
implementation of Compliance Policy in the bank.
Bank has developed a robust Management Information

System which captures data essential for vital functions such
as risk management and planning and which serves as an
effective tool for the Top Management in decision making.
This has facilitated quick decision making. The Bank is in a
position to analyse performance in major parameters even
on a day to day basis using the information system available.
Leveraging on the CBS platform of the Bank, the MIS has
facilitated speedy decision making and its implementation.
10.4 Inspection & Audit
10.6 Adherence to Right to Information Act
As on 31.03.2012, the Bank had 1712 Branches, out of which

1503 Branches were due for inspection during 2012-13 as
per Audit Plan and in tune with the same, inspection was
conducted for 1504 branches. Additionally, all the 45 B
category Branches were subject to inspection under FEMA
regulations.
R T I Act, 2005 came into force with effect from 18.10.2005 and
the act was implemented in our Bank from the date of inception
as the Bank is Public Authority under Sec. 2 (h) of the Act.
All Zonal Managers are designated as Central Public
Information Officers (CPIOs) for all offices in the Zone to deal
with request and render reasonable assistance/information
and at Head Office DGM (Law) is designated as Central
Public Information Officer to dispose off the requests
received at Head Office. General Manager at Head Office is
the Appellate Authority under the Act.
For the Financial Year 2012-13, 308 Branches were brought

under the purview of Concurrent Audit, covering 65.36% of
Deposits, 79.56% of Advances and 71.68% of Total Business
as on 31.12.2011. In addition, the following were also
covered under Concurrent Audit: (a) Investments &
International Banking, Mumbai, (b) Credit Card Division
Head Office, (c) DIT Head Office, (d) HR Department Head
Office, (e) Depository Participant (D.P. Main) Branch
Hyderabad; and Service Centres situated at Chennai,
Hyderabad, Vijayawada, New Delhi and Mumbai.
During the Year 2012-13, Bank received 877 Requests and

136 Appeals under RTI Act. All the requests and appeals
were responded and replied in time.
10.7 Customer Service
As per the directions of Department of Financial Services,
Ministry of Finance our Bank has put in place a Board
approved Centralized Public Grievance Redress System
(PGRS) for registration of complaints online. The website of
our Bank would enable the customers to lodge their
grievances/suggestions directly. Grievances received
through website will be automatically registered into the
system and will generate a unique number. The customer is
also provided with a facility of tracking the complaint online by
In addition to the Branches, the following Offices were

subjected to inspection during the Financial Year 2011-12:
Systems Inspection & Financial Audit of Controlling Offices
(23) and Head Office Departments (24), Inspection of
Service Centres (19), Credit Card Centres (19), Regional
Rural Banks (1), Financial Service Centres (7), Currency
Chests (29) and our Financial Services Subsidiary, ABFSL
(1). As a part of providing assistance to the Inspectors of
35
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/ \
] [
/
2012-13 242 /
] ] 7312 \
, / { //,
] ]
246
] ]
] ]
15 \ ]
10.11 \
8487
51.4%
4854
29.4%
\ *
3182
19.2%
16523
100.0%
* \
10.12 \ ] / \ ] ]
] ]]
31.03.2013
18060 ] ]] 3519 1659
8487 ] ] 1448
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36
mentioning the unique number. When the grievance has been

resolved, a reasoned reply in writing or by email would be given
to the complainant clearly stating the action taken. There would
be a clear cut time line of disposal specified at all the three
levels i.e. Branch 10 days, Zonal Office 5 days and Head Office
6 days, the total of which should not exceed 21 days.
conducted, besides induction & refresher programmes for

newly inducted employees. Training programmes viz.
Towards Cutting Edge Leadership and Creating a Winning
Branch were conducted for Assistant General Managers and
Chief Managers respectively by inviting eminent external
faculty.
Customers Meet
Workshops and programmes on specialized areas were

incorporated in the calendar of trainings to create awareness
among employees about latest developments / changes that
are taking place in Banking Sector.
During the Financial Year 2012-13, Bank conducted

Customers Meet across the country on a single day i.e. on
15.09.2012. Top Management and Senior Officers from
Head Office and Zonal Offices visited the Branches as
special observers and interacted with the customers. The
suggestions received during the customers meet were
circulated to all the Zones for implementation to the extent
possible as per Bank norms. In coordination with the Banking
Codes & Standards Board of India (BCSBI), we have
conducted Town Hall meetings at Hyderabad, Chandigarh
and Lucknow to create awareness among the customers on
the BCSBI code of Banks commitment to customers.
In Financial Year 2012-13, 242 in house training programmes

/ workshops were conducted covering 7312 employees. In
addition to this, 246 officers were trained in external trainings
conducted at NIBM, RBI/CAB/ BIRD, IDBRDT & FEDAI.
To have an International exposure and to equip themselves
with the accomplishments in the Global Financial Markets,
15 employees in different cadres were sent to external
programmes conducted abroad.
10.11 Staff strength
10.8 Human Resources Management
Strength
During the year, several guidelines received from the

Government of India on various H.R. matters in the areas of
Promotions, Recruitment, Performance Appraisal etc were
incorporated in HR Policy. Bank has also adopted Train
Recruit - & Induct model in recruitment of officers in addition to
the traditional method of Recruit Induct - & Train.
Accordingly, Bank has entered into a MOU with Manipal Global
Education Services, Bangalore under which Bank sponsored
candidates for the 1 year PGDBF programme with the institute,
on successful completion of which, the candidates will be
absorbed as Probationary Officers in the Bank. The first batch
of the trained candidates of the Manipal Global Education will
be available for absorption in October, 2013.
% to total
Officers
8487
51.4%
Clerks
4854
29.4%
Sub Staff *
Total
3182
19.2%
16523
100.0%
* Excluding Part Time Sweepers

10.12 SC/ST Profile
Our Bank has been implementing reservation policy for SCs
& STs as per Govt. of India guidelines. The representation of
SCs and STs is 3519 and 1659 respectively in the total work
force of 18060 working in Bank as on 31st March, 2013. Out
of total 8487 officers, 1448 belong to SC category and 614
belong to ST category. Bank has nominated a General
Manger as Chief Liaison Officer SCs & STs at Head Office
and all Zonal Managers as Liaison Officers at Zonal level to
address the grievances of SC & ST employees. Bank has
been regularly conducting quarterly joint meetings with the
representatives of SC & ST Employees Welfare Association
of Andhra Bank.
To augment the existing manpower and bridge the skill gaps

in areas like Credit, Information Technology, Forex, Risk
Management, Treasury etc., and to meet the demands of
expansion, 266 Specialist Officers, 335 General Officers and
1267 Clerks were inducted during the year.
Bank also ensured career progression by considering
promotions in each grade as per the manpower and
recruitment plan for the year. Bank considered conversion of
Part Time Sweepers to full time subordinate staff cadre in a
phased manner.
Smt. Kamla Gurjar, Honble Chairperson, National

Commission for Safai Karmacharis, New Delhi, visited our
Head Office on 03.11.2012 and reviewed service benefits
and other welfare measures available to sweepers.
10.9 Industrial Relations

Industrial Relations are cordial in the Bank. Quarterly
meetings were held with the representatives of the
recognized Officers Federation and the Award Employees
Union. Apart from this, meetings were also held at Zonal level
to sort out the local issues to better the working conditions as
well as customer service.
Smt. Latha Priya Kumar, Honble Member of National

Commission for Scheduled Castes, New Delhi, visited our
Head Office on 20.12.2012 and reviewed implementation of
Reservation policy for Scheduled Castes in the Bank.
10.10 Training
The Bank is encouraging sports in order to facilitate

promotion of sports and games to achieve excellence. The
Bank has recruited outstanding sports personnel in a few
disciplines like Cricket, Kabaddi and Chess.
10.13 Sports & Games
Bank has a newly built Apex College with state-of-the-art

training infrastructure located in the coveted IT hub of the
Financial District in Hyderabad.
10.14 Persons with Disability (PWD)
To improve the core capabilities of employees, various

training programmes on credit, leadership development,
Product Awareness & Soft Skill development were
Our Bank is providing 3% total vacancies arising in Officer,

Clerical and Sub Staff cadre in a year. The 3% posts are
37
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distributed amongst 3 categories of Persons with Disabilities

i.e., Blindness or low vision (B/LV) 1%; Hearing Impairment
(HI) 1%; Loco motor disability or cerebral palsy (LM). The
representation of Persons With Disabilities is 282 (1.56%) in
total workforce of 18060 as on 31st March, 2013.
11. OFFICIAL LANGUAGE
Hindi Quarterly Progress Report Submission has been made
Online throughout the Country. Our Bank is the first Bank to
introduce such an innovative on-line submission which
facilitates prompt and error-free submission of Hindi
Quarterly Progress Reports.
Online Memory Test has been introduced for all Zonal Offices and
Branches where staff strength is 10 or more. This is another novel
and innovative online test introduced by our Bank.
An exclusive 4 page brochure was prepared and printed
regarding OL Implementation at Zonal and branch level. The
same was sent to all ZOs and branches.
Rajbhasha Link in AB Staff Portal has been revamped.
Besides 'Rajbhasha Mission', various formats, Important
Circulars, other related important information, Hindi House
Magazine, 'Akruti' Hindi Software and Hindi Workshop
material has also been kept in our Portal.
Official Language Implementation Committee of HO was
conducted on 27.06.2012, 25.09.2012, 21.12.2012 and
20.03.2013.
Andhra Bank is the convener of TOLIC (Banks) Hyderabad.
This committee was awarded 2nd prize in O.L.
implementation by Govt. of India for the year 2011-12.
Learn a Hindi Word Everyday Scheme and 'Thought for the
Week' up to June 2013 was prepared and sent to all Branches
and Zones in the form of a circular for implementation.
RBI Master Circular regarding OL Implementation was
printed and circulated to all Zones and branches.
Meeting of Town Official Language Implementation
Committee was conducted on 21.05.2012 and 19.10.2012.
Various Inter-Bank Hindi Competitions were conducted.
Prize Distribution Function and "Geet Sandhya" was held on
09.10.2012 at HO. Two Hoardings were displayed in
Hyderabad on the occasion of Hindi Day for a week. TOLIC
Website was launched on 19.10.2012.
Our website is being monitored on weekly basis in order to
ensure that Hindi version is kept updated. RBI has
appreciated Website of our Bank amongst all Banks in
previous Review meeting.
Hindi Month was celebrated at HO and all ZOs from
14.09.2012 to 13.10.2012. All branches celebrated Hindi Day
on 14.09.2012. Various Hindi Competitions were conducted
during Hindi Month.
On-Line OL test was successfully conducted throughout the
Country from 24th to 27th September, 2012.
A Pocket Nirdeshika regarding Use of Hindi was printed and
released on 14.09.2012. The same was sent to all Zones and
branches for implementation.
Quarterly Issue of "Rajbhasha Sarita" Quarterly Hindi
Magazine was printed every quarter in time.
"Rajbhasha Vani" - Hindi monthly e-bulletin was launched. Our
Bank is the Second Bank to launch Hindi monthly e-bulletin.
Hindi word is displayed daily on AB Staff Portal. It is also

being sent to all Zones and branches by e-mail.
Hindi Workshops were conducted by Head Office and all
Zones.
Dec.2012 issue of "Bharti" - TOLIC Hindi Magazine was
printed.
OLO (OL Officers) Conference was conducted on 17 & 18
December, 2012 to review use of Hindi in our Bank.
One week Training Programme was conducted for all newly
recruited OL Officers at Head Office.
"Rajbhasha Guide" and "Margdarshika" was prepared and
sent to all Zones. The booklets contain guidelines about OL
Implementation and Help Literature respectively.
12. VIGILANCE
As per the Vigilance Manual the Vigilance administration of
the Bank is being reviewed in the prescribed format on
quarterly basis by Chairman & Managing Director with the
Chief Vigilance Officer. Compliance / Investigation wherever
necessary has been done and complaints disposed off.
Vigilance Department initiated steps for quick disposal of
pending cases of disciplinary proceedings. Preventive
Vigilance Inspection of 1379 Branches was conducted
during this Financial Year 2012-13.
The Agreed List and the list of Officers with Doubtful Integrity
for the year 2012 were prepared. Annual Property
Statements of officials for the Financial Year 2012-13 have
been reviewed. Based on the experiences gained out of the
frauds detected and their modus operandi, several systemic
changes were suggested to other departments for
implementation.
Vigilance Department is extending required inputs / guidance
/ faculty support to Staff College in all training courses to
refresh the staff with regard to Preventive Vigilance
measures. During this Financial Year, 348 sessions were
conducted.
In-house magazine Savdhan was released quarterly up to
December 2012. Online test on Preventive Vigilance was
conducted among all branches of the Bank and the top
performers were awarded. A workshop on Transparency in
Public Procurement was conducted on 02.11.2012 at Head
Office, Hyderabad. As a part of Vigilance Awareness Period,
Bank observed the Vigilance Awareness Week from
29.10.2012 to 03.11.2012 and conducted a Meeting at Head
Office on 03.11.2012.
13. LEAD BANK SCHEME
Andhra Bank is the Convener Bank for State Level Bankers
Committee, Andhra Pradesh since 1983 and so far
conducted 180 SLBC meetings and during the current year,
SLBC has conducted 43 meetings of different nature.
Andhra Bank is also having Lead Bank Responsibilities in six
districts, viz. Srikakulam, East Godavari, West Godavari,
Guntur in Andhra Pradesh and Ganjam, Gajapathi districts of
Odissa State. Bank is discharging all the responsibilities in
implementation of Lead Bank Scheme.
Andhra Pradesh State is leading the country with outstanding
Agricultural credit of Rs.1.18 lakh crore and SHG Bank
39
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readiness before the stipulated date i.e. 30th June, 2013.

Bank has also sourced kiosk Banking technology for
Financial Inclusion operations to pave way for direct
deployment of Customer Service Providers / B.C agents at
the needy villages.
linkage finance of Rs.17,520 crores extended to 13.99 lakh

SHGs as at the end of December, 2012.
The Bank has effectively coordinated the implementation of
Ministry of Finance, Government of India guidelines for
coverage of uncovered farmers and other non farming
households and implementation of Financial Inclusion plan in
respect of villages with above 2000 population.
Coverage of FI villages:
All the allotted FI villages having population above 2000 have
been covered by Bank during the year 2011-12. During 201213, the focus was on customer enrollments, transactions
through the CSPs, roll out of other products in these villages.
As at the end of March, 2013, 7.01 lakh FI customer accounts
were opened which have builtin overdraft facility of Rs.500/. General Purpose Credit facility up to a maximum limit of
Rs.25,000/- was enabled to the FI customers through the BC
agents. The transactions are happening in both off-line and in
on-line mode.
As Convener Bank for SLBC, Andhra Pradesh, sub

committees were constituted on Financial Inclusion, Housing
Loans, Agricultural Credit, Government Sponsored
Schemes, Lending to Minority Communities and MSME
sector for focused attention.
SLBC has established a Call Centre namely APSLBC
CALL CENTRE on behalf of all Banks in the state with toll
free telephone Number, SMS service and email queries /
facilities to provide for an effective and centralized grievance
redressal and facilitation mechanism for opening of Bank
accounts and other banking related queries.
An exclusive website is set up for SLBC of Andhra Pradesh
with URL www.slbcap.nic.in for the information of all the
stake holders and general public.
Out of the total 2692 FI villages having population below

2,000 as per the allocation made by the SLBCs in different
States, Bank has covered 495 villages as on 31.03.2013. As
per the road map submitted to Reserve Bank of India, the
remaining FI villages in this category are targeted for
coverage during the year 2013-14.
14. APBIRED
Ultra Small Branches (USBs):
Andhra Pradesh Bankers Institute of Rural and

Entrepreneurship Development (APBIRED) is a non-profit
society formed by Government of Andhra Pradesh, NABARD
and six Public Sector Banks including Andhra Bank. The
Institute imparts capacity building, entrepreneurship
development, project opportunity guidance, etc., to rural men
and women (in the age group of 18 years to 35 years), Rural
Entrepreneurs, rural SHG women and also promotes
transfer of appropriate technology to farmers and
agriculturists in Agriculture and Allied Activities.
Ultra Small Branches are functioning in all the FI villages

having population above 2,000. Designated officers from the
link branches are visiting the USBs on a specified day in a
week along with a laptop having VPN connectivity to CBS for
undertaking the specified works.
Smart card project MGNREG scheme wages & Social
security pension disbursements:
Bank is continuing the disbursal of Government benefits
such as MGNREGS wages and Social security pensions to
the identified beneficiaries in the allotted districts Guntur
and Srikakulam under one District- one Bank mode and
through service area mode in East Godavari District and in
one mandal of Warangal district of A.P. State. We have
enrolled over 22 lakh beneficiaries in 2656 gram panchayats
and during the year Rs 533 crores was disbursed as benefit
amount through CSPs.
15. FINANCIAL INCLUSION

Financial Inclusion Plan
Bank has covered all the allotted villages having population
above 2000 with Business Correspondent operated banking
outlets by March 2012. At the end of March 2013, 7.01 lakh
AB Gram Kranthi Savings accounts, with built in overdraft
facility of Rs 500/- were opened through BC agents in FI
villages. As at the end of March 2013, 495 new FI villages
have been covered under FIP as against a target of 316.
Smart card project - Self Help Groups (SHGs):

To facilitate providing banking services at the doorstep of
SHGs, Bank is undertaking SHG-Smart Card Project through
Business Correspondent agents on pilot basis at 4 branches,
viz., Rayavaram, Kadiam, Anaparthi and Bibinagar. By this
method, the SHG women are able to undertake banking
transactions at their door step without visiting the branches.
This system has enabled them to save on time and money.
Direct Benefit Transfer Scheme implementation:

Govt. of India has launched the Direct Benefit Transfer (DBT)
scheme in 43 districts on pilot basis across the country under
phase-I w.e.f. 1st January, 2013. Out of the above, 5 districts
namely East Godavari, Ananthapur, Chittoor, Ranga Reddy
and Hyderabad are located in Andhra Pradesh State, where
Bank has larger presence. We have Lead Bank responsibility
in East Godavari district. Our Bank has initiated the required
steps for ensuring readiness for DBT implementation.
Coverage of Non-Loanee Farmers:

Bank has taken up a special campaign to cover 100%
farmers through bank finance in Banks Service Area
Villages. 62,041 new farmers are covered with Bank finance
during year up to March 31st, 2013.
Our Bank was on-board of Aadhaar Payment Bridge (APB)

and receiving the files from NPCI based on Aadhaar mapping
details. Bank is getting set for Aadhaar Enabled Payment
System (AEPS). Bank has also sourced FI-Gateway
solution. The testing for inter-operability of BC operations is
under way and necessary steps are in place to ensure its
SB-Overdraft Facility to landless rural poor:

A new product of SB Overdraft facility (upto Rs 10,000) is
introduced and special campaign started to cover all landless
rural poor in Banks 5148 Service Area Villages.
41
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Financial Literacy and Credit Counseling Centres:

Bank has established six Financial Literacy and Credit
Counseling Centres in 6 Lead Districts of the Bank viz.,
Eluru, Guntur, Kakinada and Srikakulam ( in Andhra
Pradesh) Ganjam and Gajapathi ( in Odisha). The centers
are promoting financial literacy and providing credit related
extension services. Bank has formed new FLCC trust Jana
Chetana Financial Literacy and Credit Counseling Trust
(JCFLCCT) on 6th February 2013 for coordinating the
financial literacy activities.
Financial Literacy initiatives:
Ground level publicity initiatives have been taken up in the
form of release of pamphlets, visit of villages, audio-video
documentary, mobile vans mounted with publicity material
etc., to promote Financial literacy in the FI villages. As
Convenor, SLBC of A.P. State, a Call-Centre has been set up
at the Bank for responding to the peoples enquires on
opening of bank accounts.
The Rural Self Employment Training Institutes and Financial
Literacy Centres established by Bank in various locations
across the country are also undertaking programs to educate
the people on banking and financial matters.
16. SUBSIDIARIES & REGIONAL RURAL BANKS
The Bank has one Subsidiary, namely, Andhra Bank
Financial Services Limited (ABFSL), which is wholly-owned
by the Bank. During the year 2012-13, one of the major civil
suits No 45/1995 filed against the company and long pending
in the Special Court, Mumbai was completed without any
liability to the company. The contingent liability shown till now
in the Balance sheet of Rs 40.07 Crore was removed in the
Balance sheet as at 31.03.2013 on account of the judgment
in the special court, Mumbai on 13.07.2012. The Company
has earned a profit of Rs.115.53 Lakhs before Income Tax
and a Net Profit of Rs.92.44 Lakhs after Income tax during
the year ending 31.03.2013. With this, the negative net worth
of the company has been brought down from Rs.1268.59
Lakhs to Rs.1176.15 Lakhs as on 31.03.2013.
Bank has two sponsored Regional Rural Banks namely
Chaitanya Godavari Grameena Bank located in Guntur
(Andhra Pradesh), covering the districts Guntur, East
Godavari and West Godavari and Rushikulya Gramya Bank
in Ganjam and Gajapati Districts in the state of Odisha.
Rushikulya Gramya Bank sponsored by Andhra Bank and
Utkal Gramya Bank sponsored by State Bank of India are
amalgamated in to single Regional Rural Bank called as
Utkal Grameen Bank and the effective date of amalgamation
is 01-11-2012. The amalgamation was done as part of reorganisation of Regional Rural Banks and as per the
Notification of Government of India.
As on 31.03.2013, Bank is having one RRB namely
Chaitanya Godavari Grameena Bank and the total business
stood at Rs. 2576.68 Crore.
17. VISITS OF PARLIAMENTARY COMMITTEES
Four Parliamentary committees of Rajya Sabha/Lok Sabha
have visited during the period from 01.04.2012 to 31.03.2013
on fulfillment of various Assurances, Reservation in
employment and welfare measures for OBC, Security
Interest (Enforcement) Rules, 2002 and Grievance redressal
mechanism and Empowerment of Women. Andhra Bank

was directed to coordinate the visits of the Committees and
make necessary arrangements for conducting the meetings.
National Commission for Safai Karmacharis has also visited
our Bank on 3rd November, 2012.
Parliamentary Committee on O.L. visited our Zonal Office,
Vijayawada in February, 2013. Our Bank was the convener for
the same. The Committee appreciated use of Hindi in our Bank.
18. ANDHRA BANK RURAL DEVELOPMENT TRUST
Under the aegis of Andhra Bank Rural Development Trust,
Bank has set up 11 Rural Self Employment Training Institutes
(RSETIs) at various centres (in A.P., Odisha, and Kerala
states) and is imparting need based training for capacity
building/entrepreneurial development and dissemination of
knowledge to farmers, SHG women , Rural unemployed
youth and artisans.
Since inception, 1,17,559 candidates have been trained
through 3,807 programmes by the Institutes and around
65.98% of the trained candidates are engaged in gainful
ventures.
During the year 2012-13, the institutes imparted training to
10,199 candidates through 402 programmes.
Out of 11 Institutes, 5 institutes were awarded A+/A rating by
Ministry of Rural Development, Government of India.
Further, Andhra Bank Institute of Rural Development
(ABIRD) Rajahmundry secured First Prize among all RSETIs
in the Country.
19. SECURITY ARRANGEMENTS
High priority is being accorded to upgrade security
arrangements at Branches, Currency Chests and ATMs.
CCTV Surveillance System has been installed in additional
179 Branches, 100 offsite and 22 onsite ATMs. With this,
1122 Branches, 303 onsite and 100 offsite ATMs of the Bank
were brought under CCTV surveillance. Installation of CCTV
system in remaining Branches and ATMs is under way. Board
approval has been obtained for installation of Improved
Burglar Alarm and Time Lock System in 1077 Vulnerable
Branches in the current FY 2013-14.
Annual security Inspections of all Currency Chests and
Branches have been conducted. High level of physical
security of ATMs is being ensured. Efforts are being made to
further improve security systems to minimize crime against
our Bank / Branches.
20. NRI CELL
The NRI Cell was set up with a view to serve as an effective
channel of communication between the Bank and its NRI
Clientele. The Cell supports and guides the Representative
Offices for betterment of Customer Service among NRIs of
respective countries by maintaining liaison with the officials of
Representative Office. It does regular correspondence with the
NRI customers of the Bank and attends to the clarifications,
grievances if any, besides marketing products of Bank.
To spread financial literacy and awareness on foreign
exchange among general public, NRI Cell has participated in
exhibitions at Warangal, Kakinada and Tirupati. These
exhibitions were conducted under the guidance of Reserve
Bank of India in their endeavour to spread awareness on
foreign exchange matters among general public. NRI Cell
43
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has put up a Stall to attract NRIs at World Telugu Conference

which was held at Tirupati.
received by Sri K K Misra, Executive Director of Andhra

Bank and Sri M Subramayeswara Rao, Director ABIRD,
Rajahmundry in the presence of Dr.D.Veerendra Heggade,
Chairman, National Advisory Council for RSETIs.
In the NFS Operational Excellence Awards 2012 (National
Payment Corporation of India) held at Mumbai on
14.12.2012, our Bank was presented Special Jury Award
in recognition of our Banks excellent performance in key
parameters in respect of ATMs and Switch connected to
NFS ATM Network.
Andhra Bank was awarded 4th Prize by RBI for 2011-12 in
O.L. implementation in C region.
24. OUTLOOK FOR 2013-14
RBIs 60th round of the Industrial Outlook Survey conducted
during Q3 of 2012-13 showed marginal improvement in the
business sentiments of the manufacturing sector. RBIs 11th
round of Consumer Confidence Survey conducted in
December 2012 continued to show a decline in the index in
the latest quarter. There was deterioration in the perceptions
on current economic conditions, current household
circumstances and current spending. The Future
Expectations Index also indicated a decline in consumers
perceptions of the future.
Several risks for global outlook remain, with the impact of
sequestration in the US on global economy likely to be muted
in view of legislation initiated to avert the debt ceiling, and
lead indicators point to a sluggish global growth. Political
economy risks that block or delay credible and determined
policy actions in advanced economies (AEs) are inhibiting
recovery. For Emerging and Developing Economies (EDEs),
risks of spillovers from AEs remain significant. While global
inflationary pressures are likely to be subdued, given still
large output gaps, several EDEs could potentially face the
threat of elevated energy prices.
The Central Statistics Office (CSO) has projected GDP
growth for 2012-13 at 5.0 per cent, lower than RBIs baseline
projection of 5.5 per cent, reflecting slower than expected
growth in both industry and services. The government has a
critical role to play by remaining committed to fiscal
consolidation, easing the supply bottlenecks and improving
governance surrounding project implementation.
The foremost challenge for the economy to return to a high
growth trajectory is to revive investment. A competitive
interest rate is necessary for this, but not sufficient.
Sufficiency conditions include bridging the supply
constraints, staying the course on fiscal consolidation, both
in terms of quantity and quality, and improving governance.
25. CHANGES IN THE BOARD DURING THE YEAR
The following changes took place in the composition of the
Board of the Bank during the Financial Year 2012-13:
Sri A.A.Taj ceased to be Executive Director of the Bank
due to superannuation on 31.08.2012.
Sri S.K.Kalra assumed charge as Executive Director of the
Bank on 05.10.2012.
Smt Madhulika P.Sukul, Govt. Of India Nominee Director
ceased to be Director on 24.09.2012.
Sri Mohammad Mustafa assumed charge as Govt. Of
India Nominee Director on 25.09.2012.
21. BRANDING AND COMMUNICATIONS

With the objective of Brand Building and providing support to
the marketing activities of the Bank and to disseminate
information to the general public, prospective customers and
stakeholders, the Department embarked upon various
publicity campaigns in Print and Electronic media, FM Radio
Channels, In-theatre branding, TV commercials, Digital
Media, various outdoor media and so on.
Publicity blitz apart, the Department also undertook various
CSR activities which includes: Donation of Ambulance to
UHC Hospital, IDA, UPPAL, Hyderabad, Distribution of Note
Books to children of Saraswati Vidya Mandir, Hyderabad,
Donation of Ambulance to Red Cross Society, Orissa State
Branch, Donation of Desks to Government Schools of twin
cities of Hyderabad, Donation of vehicle to Akshyay Patra
Foundation for distribution of Mid-day meals to school
children, Donation to Cancer Institute, Adyar, Chennai,
Donation to Bhagwan Mahaveer Vikalang Samiti, Jaipur,
Provison for supply of Water Purifiers in Mahabubnagar
District, Infrastructure facilities at Govt Schools at various
places spread across the State.
22. BANKS WEB SITE
The Bank maintains its website www.andhrabank.in in three
languages, viz., English, Hindi and Telugu for providing
information about the Bank, its services and products
offered. This website is facilitating visitors to interact with
Bank in the form of inquiry, feedback, grievance, thereby
paving the way for availing its services. The interest rates on
various products offered by the Bank are being updated on
continuous basis. Information relating to Online services like
Internet Banking, utility payments, Tax payment and other
online services are made available on the website. The Bank
has made its WCAG (Web Content Accessibility Guidelines)
website accessible to visually impaired persons, as per
Government of India guidelines.
The Bank has put new online module for displaying
Inoperative accounts as per RBI guidelines and is being
updated monthly.
The Bank being the Convener of State Level Bankers
Committee, Andhra Pradesh, maintains separate website
www.slbcap.nic.in. This website communicates all the
proceedings of SLBC Meetings, State Government
directives, instructions to Bankers and public.
The Bank follows meticulously CERT-In (Indian Computer
Emergency Response Team) guidelines issued from time to
time in maintaining Banks Website securely.
23. AWARDS AND REWARDS
Based on the evaluation of 503 Rural Self Employment

Training Institutes (RSETIs) spread across the country,
our Rajahmundry Institute has been adjudged the Best
RSETI in the country for the year 2011-12 by Ministry of
Rural Development, Government of India.
At a function organised at Vignan Bhavan, New Delhi on

28th July 2012, Sri Jairam Ramesh, Honble Minister of
Rural Development, GOI presented an award which was
45
, .
27.
, , ] ,
/],
.
\

.
.
,

( )
02.05.2013

26.

\ \ .
\ \

31 \, 2013 -]
- ] .

() 2000
\
.
46
26. DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors hereby states that
27. ACKNOWLEDGEMENT
The applicable accounting standards have been followed

in the preparation of the annual accounts and proper
explanations have been furnished, relating to material
departures.
Accounting policies have been selected, and applied

consistently and reasonably, and prudent judgments and
estimates have been made so as to give a true and fair
view of the state of affairs of the Bank and of the Profit &
Loss of the Bank for the Financial Year ended 31.03.2013.
Proper and sufficient care has been taken for the

maintenance of adequate accounting records, in
accordance with the provisions of the Companies
(Amendment) Act, 2000, for safeguarding the assets of the
Bank and for preventing and detecting fraud and other
irregularities.
The annual accounts have been prepared on a going

concern basis.
Andhra Bank is grateful to the Government of India, RBI,

SEBI and other authorities/agencies, Financial Institutions
and Correspondent Banks for their valuable support and
guidance. The Directors also express their deep sense of
appreciation to all the staff members of the Bank for their
dedicated service, outstanding professionalism and
commitment towards Bank's vision for a sustainable growth.
Finally, the Directors wish to sincerely thank all the
customers, shareholders and other stakeholders for their
valuable support.
For and on behalf of the Board,
Place : Hyderabad
Date : 02.05.2013
47
(B.A. Prabhakar)
31-03-2013 II III ( ] )
- I ]
1.1
() , ] .
() . ] ] ( )
.
) ]
i. ]
, , ] ().
. .5.00 ] (100%) .
ii. ]

1.
2.
3.

()
() \
30.00%
26.02%
25.00%
iii. ]
, ] ] 35% .

1
\
] ] .
35%
iv. ] (. ] ] )
1.2
) ] , ] , ]

, \ . .5.00 ] .
) ( \ ), ] ] , , ,
. ,
] .
] , ] ]
\ . 2009-10 30% .

30%
.142.50

" " ] .
1.
48
Disclosures under Pillar III of Basel II (New Capital Adequacy Frame work) as on 31.03.2013
Table DF-1: Scope of Application
1.1 Qualitative Disclosures
a.
The name of the top bank in the group to which the Framework applies.
Disclosures in this report pertain to Andhra Bank (Solo). The Capital to Risk Weighted Assets Ratio (CRAR) of the Bank on
standalone basis only is shown.
b.
An outline of differences in the basis of consolidation for accounting and regulatory purposes, with a brief
description of the entities within the group:
I.
That are fully consolidated:
Andhra Bank has only one Subsidiary i.e., Andhra Bank Financial Services Ltd (ABFSL). In fact, ABFSL is not carrying on
any significant financial activity. The total Share Capital (100%) of Rs. 5.00 crore is contributed by Andhra Bank only.
ii.
That are pro-rata consolidated:
Sl. No.
Name of the entity
1.
India First Life Insurance Co.
2.
ASREC (India) Ltd.
3.
India International Bank (Malaysia) BHD

iii.
India
Country of
Incorporation
Proportion of ownership
percentage
India
30.00%
26.02%
Malaysia
25.00%
That are given a deduction treatment:
Bank has the following associates where in the bank has contributed 35% of the share capital
Sl. No.
1.
Name of the entity
Country of
Incorporation
Chaitanya Godavari Grameena Bank
percentage
India
35%
The above mentioned associate is making profits and there is no capital deficiency.
iv. That are neither consolidated nor deducted (e.g. where the investment is risk-weighted): Nil
1.2 Quantitative Disclosures:
a)
The aggregate amount of capital deficiencies in all subsidiaries not included in the consolidation i.e. that are
deducted and the name(s) of such subsidiaries: Nil
The sole subsidiary of the Bank, ABFSL has outstanding accumulated losses. The Bank has fully provided entire capital of
Rs.5.00 Crore towards its investment in subsidiary.
b) The aggregate amounts (e.g. current book value) of the banks total interests in insurance entities, which are riskweighted as well as their name, their country of incorporation or residence, the proportion of ownership interest and,
if different, the proportion of voting power in these entities. In addition, indicate the quantitative impact on regulatory
capital of using this method versus using the deduction.
The Bank launched India First Life Insurance Company, a Joint Venture with Bank of Baroda and Legal & General with a
share of 30% in the year 2009-10.
Sl. No.
1.
Name of the entity

India First Life
Insurance Co. Ltd.
Country of
Incorporation
ownership
Amount invested
India
30.00%
Rs. 142.50
crore
The investment in the Joint Venture is categorized as Held to Maturity and risk-weighted accordingly
49
- 2 ] \
2.1
] \, ] - I - II
.
] (-I ]), -II (
-II) ] .
)
\- - I \ ( - I- ])

(. )
31.12.2008
200.00
9.50%
10 \ ( ]
)
2012-13 - I / ] .
] -II ] / , ]
)
-II - V (] )

(. )
05.01.2005
200.00
7.25%
111
-II - VI (] )

(. )
11.01.2008
700.00
9.15%
124
-II VII (] ])

(. )
10.09.2008
600.00
11.00%
120
-II VIII (] \)

(. )
24.12.2009
320.00
8.55%
120
50
Table DF-2: Capital Structure

2.1 Qualitative Disclosures
Summary information on the terms and conditions of the main features of all capital instruments, especially in
the case of capital instruments eligible for inclusion in Tier I or in Upper Tier II.
Bank has earlier issued Innovative Perpetual Debt Bonds (Tier I Capital), Subordinated Debt Bonds (Lower Tier II) and
Upper Tier II Bonds for inclusion in Capital.
a)
Innovative Perpetual Debt Bonds:

Unsecured Non Cumulative Subordinated Perpetual Bonds (Innovative Perpetual Debt- Tier I Capital) in the nature of
Promissory Notes - I Issue
Date of
Allotment
Bond amount
(Rs. in Crore)
Coupon
Rate #
Tenor
Call
Option
Put
Option
31.12.2008
200.00
9.50%
Perpetual
After 10 years (subject to RBI Approval)
None
There was no issue of Innovative Perpetual Debts/Bonds during the financial year 2012-13 eligible for inclusion in Tier-I
Capital.
With regard to issue of Debts/Bonds eligible for inclusion in Tier-II Capital, the Bank has issued the following:
b)Outstanding Subordinated Debt Bonds:
Unsecured Redeemable Non-Convertible Subordinated Tier II Debt Bonds V issue (Series E)
Date of
Allotment
Bond amount
(Rs. in Crore)
Coupon
Rate
Tenor
Call
Option
Put
Option
05.01.2005
200.00
7.25%
111 months
None
None
Unsecured Redeemable Non-Convertible Subordinated Tier II Debt Bonds VI issue (Series F)

Date of
Allotment
Bond amount
(Rs. in Crore)
Coupon
Rate
Tenor
Call
Option
Put
Option
11.01.2008
700.00
9.15%
124 months
None
None
Unsecured Redeemable Non-Convertible Subordinated Tier II Debt Bonds VII issue (Series G)
Date of
Allotment
Bond amount
(Rs. in Crore)
Coupon
Rate
Tenor
Call
Option
Put
Option
10.09.2008
600.00
11.00%
120 months
None
None
Unsecured Redeemable Non-Convertible Subordinated Tier II Debt Bonds VIII issue (Series H)
Date of
Allotment
Bond amount
(Rs. in Crore)
Coupon
Rate
Tenor
Call
Option
Put
Option
24.12.2009
320.00
8.55%
120 months
None
None
51
II
( -II) I (] )
(. )
#
| | 10
10
25.03.2009
200.00
9.30%
]
( ]

15
)
( -II) II (] - )
(. )
#
| | 10
10
08.06.2009
520.00
8.72%
]
( ]

15
)
( -II) III (] - )
(. )
#
| | 10
10
18.12.2009
280.00
8.70%
]
( ]

15
)
# ] ] 10 , 0.5 -
2.2
I ]
) I ] , . .
(. )
31.03.2013
]
559.58

1778.42

2348.45
]
359.39
36(1) (viii)
775.00
] ( )
98.00
]
2522.34
7881.60

200.00
8641.18

11.93

0.00
]
0.11

3.80
15.84
- I ]
8625.34
52
c) Upper Tier II Bonds:

Unsecured Redeemable Non-Convertible (Upper Tier-II) Bonds Issue I (A-Series):
Date of
Allotment
Bond amount
(Rs. in Crore)
Coupon
Rate #
25.03.2009
200.00
9.30%
Tenor
Call
Option
Put
Option
15 years from the deemed date of

allotment, in case call option is not
exercised at the end of 10 years
After 10 years
(Subject to RBI
Approval)
None
Tenor
Call
Option
Put
Option

After 10 years
(Subject to RBI
Approval)
None
Tenor
Call
Option
Put
Option

After 10 years
(Subject to RBI
Approval)
None
Unsecured Redeemable Non-Convertible (Upper Tier-II) Bonds Issue II (B-Series):

Date of
Allotment
Bond amount
(Rs. in Crore)
Coupon
Rate #
08.06.2009
520.00
8.72 %
Unsecured Redeemable Non-Convertible (Upper Tier-II) Bonds Issue III (C-Series):

Date of
Allotment
Bond amount
(Rs. in Crore)
Coupon
Rate #
18.12.2009
280.00
8.70
# Step up option of 0.5% at the end of the call option i.e., 10th year from the date of issue of the Bond in case the call option is not
exercised.
a.
The amount of Tier I Capital:

The Banks Tier I Capital comprise of Equity shares, Reserves and Innovative Perpetual Bonds. The details of the same are
as mentioned below.
(Rs. in Cr)
Particulars
31.03.2013
Amount
Paid up Equity Share Capital
Amount
559.58
Reserves:
Share Premium
1778.42
Statutory Reserve
2348.45
Capital Reserve
359.39
Special Reserve under Sec 36 (1) (viii) of Income Tax
775.00
Retained Earnings (Balance in P&L A/c)
98.00
Revenue Reserve
2522.34
Innovative Perpetual Debt Bonds
7881.60
200.00
Total
8641.18
Less :
Intangible Assets
11.93
Deferred Tax Asset
0.00
Capital Charge for Securitization Transactions
0.11
Deduction for investment in Subsidiaries & associates
3.80
TOTAL TIER-I CAPITAL
15.84
8625.34
53
) II ] ( II ] )
- II ] , - II - .
.
(. )
31.03.2013
5.00
0.00
613.35
618.35
- II

]
1000.00
- II
0.00
1000.00
1000.00
] II ]
31.03.2013
1700.00
0.00
40.00
0.00
- II
1660.00
1660.00
3278.35
\) II ]
]
0.11
3.80
- II ]
3.91
3274.44
) ]
( )
31.03.2013
I ]
8625.34
II ]
3274.44
11899.78
54
b.
The total amount of Tier II Capital (Net of deductions from Tier II Capital)
The Banks Tier II Capital comprise of Subordinated Debt Bonds, Upper Tier-II Debt Bonds and other general
provisions and loss reserves. The details of the same are as mentioned below.
(Rs. in Cr)
Particulars
31.03.2013
Amount
Undisclosed Reserve
5.00
General Provisions and Loss Reserves
0.00
Contingent Provisions on Standard Assets
613.35
Amount
618.35
Upper Tier-II Debt Bonds

Total amount outstanding
1000.00
Out of which raised during the year
0.00
Amount eligible for inclusion in Tier-II
1000.00
1000.00
Total
Subordinated debts eligible for inclusion in Lower Tier II capital
Total amount outstanding as on 31.03.2012
1700.00
Amount raised during the year
0.00
Discounted during the year
40.00
Redeemed during the year
0.00
Amount eligible for inclusion in Tier-II
1660.00
Total
1660.00
3278.35
Other deductions from Tier II capital

Capital Charge for Securitization Transactions
0.11
Deduction for investment in Subsidiaries & associates
3.80
TOTAL TIER-II CAPITAL
3.91
3274.44
c. Total eligible capital comprise of:
(Rs. in Cr)
31.03.2013
Tier I Capital
8625.34
Tier II Capital
3274.44
Total eligible Capital
11899.78
55
- 3 ]

]
-II ] . -II
] [\ . ] ]
() . 4 ]
] ] \ ] ] .
] , ]
] \ ] .
-II ] .
3.2
(. )
.31.03.2013

] ]

8188.67
]
] ] ]
-
] ]
331.77
] ( )
1.35
]
69.52
\ ] ]
- \
585.74
- I
(%)
11.76%
- I (%)
8.52%
- I
(%)
11.76%
- I (%)
8.52%
, ] , - I
(%)

- I (%)
- 4
4.1
) ]
4.1.1 ] ( ] )
, ] , ] ] . '] ()' , ] i) ] ] / 90 ] ,
ii) / (/) , ] 90 / ] .
iii) / ] 90 ] .
iv) ] ] ]
v) ] ] ] .
vi) 90 ] .
vii) ] ] \ ,
90 ] .
3.
56
Table DF-3: Capital Adequacy

3.1 Qualitative disclosures:
A summary discussion of the banks approach to assessing the adequacy of its capital to support current and future
activities:
Bank is geared up to adopt global best practices while implementing risk management stipulations that are in conformity with
the Basel II framework. Comprehensive risk management architecture is in place to address various issues concerning Basel II.
For periodic assessment of Capital needs of the Bank, an Internal Capital Adequacy Assessment (ICAAP) Committee
comprising of the top executives has been constituted, to monitor and assess the Capital requirement of the Bank over the
medium horizon of 4 years, keeping in view the anticipated growth in Risk Weighted Assets in Credit Risk, Market Risk and
Operational Risk.
The Committee meets regularly and decides on the capital related issues, with due focus on different options available for
capital augmentation and realignment of Capital structure duly undertaking the scenario analysis for capital optimization. The
Bank is raising Tier II capital in the form of Subordinated Debt and Hybrid Instruments, as and when required.
3.2 Quantitative disclosures:
Items
Amount
as on 31.03.2013
Capital requirements for credit risk
Portfolios subject to standardized approach
8188.67
Securitisation exposures
NIL
Capital requirements for market risk
- Standardized duration approach
Interest rate risk
331.77
Foreign exchange risk (including gold)
1.35
Equity position risk
69.52
Capital requirements for operational risk
- Basic indicator approach
585.74
Total and Tier 1 CRAR for the Bank
Total CRAR (%)
11.76%
Tier 1 CRAR (%)
8.52%
Total and Tier 1 CRAR for the Consolidated Group
Total CRAR (%)
11.76%
Tier 1 CRAR (%)
8.52%
Total and Tier I CRAR for the Significant Subsidiary which is not under consolidated group
Total CRAR (%)
NA
Tier 1 CRAR (%)
Table DF-4: Credit Risk: General Disclosures
4.1 Qualitative Disclosures:
a)
General qualitative disclosures with respect to credit risk
4.1.1 Definition of Past due and impaired (for accounting purposes):
An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. A "Non
Performing Asset" (NPA) is a loan or an advance where:
i) Interest and/or instalment of principal remain overdue for a period of more than 90 days in respect of a Term Loan,
ii) The account remains out of order for a period of more than 90 days as indicated hereunder, in respect of an
Overdraft/Cash Credit (OD/CC),
iii) The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,
iv) The instalment of principal or interest thereon remains overdue for two crop seasons for short duration crops,
v) The instalment of principal or interest thereon remains overdue for one crop season for long duration crops.
vi) Any amount to be received remains overdue for a period of more than 90 days in respect of other accounts.
vii) In respect of derivative transactions, the overdue receivables representing positive mark-to market value of a derivative
contract, if these remain unpaid for a period of 90 days from the specified due date for payment.
57
4.1.2
] "
" \ , ] ] .
\ , , \
. , .
], \ ] ] ] , , ]
.
]
/ ] \
;
] \
];
/ ];
] ] .
] ] . -
. ] \, / , ,
[ , .
] ] ] .
] ] , II
.
] .
1. ] [.
2. .
3. / ] ] ] .
4. ] ] \ ] .
5. ] \ ( )
.
6. ]
4.1.3 ] \
] \
] ( )
- ] ( ) ( ] ) -
] , ] ( ),
4.1.4 ]
] \ ] , ]
, , , , , ] ] \
, , , , , , ] ] ], ( ),
, .
58
4.1.2 Strategies and Processes:

Credit Risk is defined as "the possibility of losses associated with diminution in the credit quality of borrowers or counter
parties". There is always a possibility for the borrower to default from his commitments for various reasons, resulting in
crystallization of Credit risk to the Bank. These losses could stem from outright default due to inability or unwillingness of a
customer or counter party to meet commitments in relation to lending, trading, settlement and other financial transactions.
Alternatively, losses result from reduction in portfolio value arising from actual or perceived deterioration in credit quality. Credit
risk is, therefore, a combined outcome of Default Risk & Exposure Risk and arises from the Bank's dealings with or lending to a
corporate, individual, bank, financial institution or a sovereign.
Credit risk may take the following forms:
in the case of direct lending: principal/and or interest amount may not be repaid;
in the case of guarantees or letters of credit: funds may not be forthcoming from the constituents upon crystallization
of the liability;
in the case of treasury operations: the payment or series of payments due from the counter parties under the
respective contracts may not be forthcoming or ceases;
in the case of securities trading businesses: funds/ securities settlement may not be effected;
in the case of cross-border exposure: the availability and free transfer of foreign currency funds may either cease or
restrictions may be imposed by the sovereign.
The effective management of credit risk is a critical component of comprehensive risk management and is essential for the
long - term success of any banking institution. Credit Risk Management encompasses identification, measurement
through credit rating/scoring, quantification through estimate of expected loan losses, pricing on a scientific basis and
controlling through effective Loan Review Mechanism & Portfolio Management.
The Bank has in place a Credit Risk Management Policy which is reviewed from time to time. Over the years, the policy and
procedures in this regard have been refined as a result of evolving concepts and actual experience. The policy and
procedures have been aligned to the approach laid down in Basel-II guidelines
The Credit Risk Management Policy is designed with the following Objectives.
1.
Enhance the risk management capabilities to ensure orderly and healthy credit growth.
2.
Maintain the Asset Quality.
3.
Maintain credit risk exposure within acceptable parameters/prudential exposures.
4.
Manage the asset portfolio in a manner that ensures bank has adequate capital to hedge risks.
5.
Build database necessary for migration to the Internal Ratings Based (IRB) approach, using the Credit Risk Rating
Model implemented in the Bank.
6.
Mitigate and reduce the risk by streamlining the Systems and Controls.
4.1.3 The structure and organisation of the relevant risk management function:
Credit Risk Management structure of the Bank is as under
Board of Directors
Risk Management Committee of the Board
Credit Risk Management Committee (CRMC)
General Manager-Integrated Risk Management Department (Chief Risk Executive)-Head Office
Credit Risk Management Cell, Integrated Risk Management Department, Head Office
4.1.4 Scope and nature of risk reporting and measurement systems:

The measurement of Credit Risk includes setting up exposure limits to achieve a well diversified portfolio across dimensions
such as companies, group companies, industries, collateral type and geography. For better risk management and avoidance
of concentration of Credit Risks, internal guidelines on prudential exposure norms in respect of individual companies, group
companies, Banks, individual borrowers, non-corporate entities, sensitive sectors such as capital market, real estate, sensitive
commodities, etc., are in place.
59
4.1.5 ] \
. , , \, ],
] , , , , (), ] , ]
, , ,/ , .
4.2
) ]
( )
31.03.2013

100137.75

18255.94
) , ] .
) ]
31.03.2013 () :
31.12.2012 ( ) .90292.02
.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
*
9.00
8126.28

10.00
9029.20
] *
22.00
19864.24
] ( )
5.00
4514.60
*
10.00
9029.20
, ]
5.00
4514.60

6.00
5417.52
\
5.00
4514.60
]
5.00
4514.60
2.00
1805.84

5.00
4514.60
1.00
902.92
*
10.00
9029.20
*
10.00
9029.20
1.50
1354.38
3.00
2708.76
3.00
2708.76

2.00
1805.84
(

) *
15.00
13543.80
20 ] ( ) *
7.00
6320.44
* ] 5 ]. .
60
( )
31.03.2013 31.03.2013 ,
31.12.2012
]

]
4867.18
3526.70
5.39%
1261.79
956.00
1.40%
16633.42
12757.54
18.42%
2570.21
2013.00
2.85%
8772.23
6991.84
9.72%
1538.14
1266.93
1.70%
2176.26
1772.07
2.41%
1502.08
1242.15
1.66%
1782.11
1274.00
1.97%
744.14
575.00
0.82%
914.83
481.00
1.01%
217.73
207.30
0.24%
5921.93
4359.57
6.56%
2927.88
2390.80
3.24%
240.00
232.00
0.27%
553.57
376.89
0.61%
1163.00
874.00
1.29%
566.09
547.05
0.63%
9486.41
3090.96
7897.53
2018.52
10.51%
3.42%
4.1.5. Policies for hedging and mitigating risk and strategies and processes for monitoring the continuing
effectiveness of hedges/ mitigants:
The bank also has a well defined Loan Policy in place. The bank has formulated policies & procedures on standards for
presentation of credit proposals, financial covenants, rating standards and benchmarks, delegation of credit approving
powers, prudential limits on large credit exposures, asset concentrations, standards for loan collateral, portfolio
management, loan review mechanism, risk concentrations, risk monitoring and evaluation, pricing of loans, provisioning,
regulatory/legal compliance etc.
a)
The total Gross Credit Risk Exposures are :

(Rs. in Cr)
Category
Amount as on 31.03.2013
Fund Based
100137.75
Non Fund Based
18255.94
b) Bank has no Overseas Branches. Hence, Geographical exposures are not given.
c)
Industry type distribution of exposures:
INDUSTRY WISE INTERNAL (FUNDED) EXPOSURE CEILINGS AND EXPOSURE AS ON 31.03.2013.

TOTAL ADVANCES AS ON 31.12.2012 ( PREVIOUS QUARTER ) : RS 90292.02 CRORE
(Rs. In Crore)
Sl.
No
Industry
Textiles*
Ceilings as % of
total advances of
previous quarter
Ceiling amount
on total
advances of
Actual Fund
based exposure
as on
31.03.2013
previous quarter
Actual Fund based

outstanding as on
31.03.2013
Fund based
Exposure as % of
total advances of
previous quarter
i.e. 31.12.2012
9.00
8126.28
4867.18
3526.70
5.39%
Petroleum Products
10.00
9029.20
1261.79
956.00
1.40%
Power*
22.00
19864.24
16633.42
12757.54
18.42%
Engineering (Heavy & Light)
5.00
4514.60
2570.21
2013.00
2.85%
NBFC*
10.00
9029.20
8772.23
6991.84
9.72%
Diamonds, Gems & Jewellery
5.00
4514.60
1538.14
1266.93
1.70%
Rice Mills
6.00
5417.52
2176.26
1772.07
2.41%
Sugar
5.00
4514.60
1502.08
1242.15
1.66%
Drugs & Pharmaceuticals
5.00
4514.60
1782.11
1274.00
1.97%
10 Tobacco
2.00
1805.84
744.14
575.00
0.82%
11 Cement & Cement Products
5.00
4514.60
914.83
481.00
1.01%
12 Distilleries
1.00
902.92
217.73
207.30
0.24%
13 Iron & Steel*
10.00
9029.20
5921.93
4359.57
6.56%
14 Construction & Contractors
10.00
9029.20
2927.88
2390.80
3.24%
15 Software
1.50
1354.38
240.00
232.00
0.27%
16 Hospitals
3.00
2708.76
553.57
376.89
0.61%
17 Hotels
3.00
2708.76
1163.00
874.00
1.29%
18 Educational Institutions
2.00
1805.84
566.09
547.05
0.63%
19 Housing Loans*(includes
residential mortgages & indirect
finance to Housing intermediaries)
15.00
13543.80
9486.41
7897.53
10.51%
20
7.00
6320.44
3090.96
2018.52
3.42%
Commercial Real Estate
*Exposure is more than 5 per cent of the gross credit exposure of previous quarter
61
31.03.2013 ( ) ] ]
31.12.2012 ( ) - . 29437.50
( )

31.03.2013
31.03.2013 ,
31.12.2011
%

] %
1
4.00
1177.50
1090.50
608.48
3.70%
2
1.00
294.38
57.70
33.13
0.20%
3 ] *
10.50
3090.94
2808.00
2000.88
9.54%
4 ] ( )
12.00
3532.50
2111.67
1861.94
7.17%
5
5.00
1471.88
527.00
492.08
1.79%
6 ,]
3.00
883.13
326.19
183.55
1.11%
7
2.00
588.75
46.73
32.41
0.16%
8 \
4.00
1177.50
567.63
110.82
1.93%
9 ]
6.00
1766.25
893.55
573.89
3.04%
10
0.50
147.19
77.83
46.36
0.26%
11
2.00
588.75
57.50
20.77
0.20%
12 ]
0.50
147.19
19.30
3.53
0.07%
13 *
14.00
4121.25
2861.81
1866.19
9.72%
14 *
50.00
14718.75
4303.13
2063.66
14.62%
15
1.00
294.38
33.35
15.60
0.11%
16
1.50
441.56
83.74
58.37
0.28%
17
1.50
441.56
7.78
4.25
0.03%
18
2.00
588.75
54.46
30.52
0.19%
19 ] ( )
2.00
588.75
303.08
72.60
1.03%
* 5%
)
( )

()

0 1
347.77
78.21
363.86
2 7
726.24
170.90
57.83
8 14
1744.17
495.91
59.41
15 28
1454.37
420.80
225.82
29 3
9700.13
1919.67
651.50
3 6
6761.67
888.52
1137.03
6 1
10581.17
622.24
53.52
1 3
40750.36
4407.73
0.00
3 5
11190.86
4590.43
0.00
5
15116.55
24201.07
0.00
98373.29
37795.48
2548.97
62
INDUSTRY WISE INTERNAL (NON-FUNDED) EXPOSURE CEILINGS AND EXPOSURE AS ON 31.03.2013.

TOTAL NON-FUNDED Limits AS ON 31.12.2012 (PREVIOUS QUARTER), Rs.29437.50 Cr.
(Rs. In Crore)
Sl.
No Industry
Ceilings as % of Ceiling amount

Fund Limits of
on Non Fund
previous quarter of Limits previous
quarter
Actual Non
Fund based
exposure as
on 31.03.2013
Actual NonFund
based outstanding
as on 31.03.2013
Non Fund based

Exposure as % of
Non fund Limits of
previous quarter
i.e. 31.12.2012
Textiles
4.00
1177.50
1090.50
608.48
3.70%
Petroleum Products
1.00
294.38
57.70
33.13
0.20%
Power*
10.50
3090.94
2808.00
2000.88
9.54%
Engineering (Heavy & Light)*
12.00
3532.50
2111.67
1861.94
7.17%
NBFC
5.00
1471.88
527.00
492.08
1.79%
Diamonds, Gems & Jewellery
3.00
883.13
326.19
183.55
1.11%
Rice Mills
2.00
588.75
46.73
32.41
0.16%
Sugar
4.00
1177.50
567.63
110.82
1.93%
Drugs & Pharmaceuticals
6.00
1766.25
893.55
573.89
3.04%
10 Tobacco
0.50
147.19
77.83
46.36
0.26%
11 Cement & Cement Products
2.00
588.75
57.50
20.77
0.20%
12 Distilleries
0.50
147.19
19.30
3.53
0.07%
13 Iron & Steel*
14.00
4121.25
2861.81
1866.19
9.72%
14 Construction & Contractors*
50.00
14718.75
4303.13
2063.66
14.62%
15 Software
1.00
294.38
33.35
15.60
0.11%
16 Hospitals
1.50
441.56
83.74
58.37
0.28%
17 Hotels
1.50
441.56
7.78
4.25
0.03%
18 Educational Institutions
2.00
588.75
54.46
30.52
0.19%
19 Commercial Real Estates
2.00
588.75
303.08
72.60
1.03%
*Exposure is more than 5 per cent of the gross credit exposure of previous quarter
d)
Residual contractual Maturity breakdown of assets:

(Rs. in Cr)
Maturity Pattern
Advances (Net)
Investments
Foreign Currency Assets
0 to 1 day
347.77
78.21
363.86
2 to 7 days
726.24
170.90
57.83
8 to 14 days
1744.17
495.91
59.41
15 to 28 days
1454.37
420.80
225.82
29 days to 3 months
9700.13
1919.67
651.50
Over 3 months & upto 6 months
6761.67
888.52
1137.03
Over 6 months & upto 1 year
10581.17
622.24
53.52
Over 1 year & upto 3 years
40750.36
4407.73
0.00
Over 3 year & upto 5 years
11190.86
4590.43
0.00
Over 5 years
15116.55
24201.07
0.00
Total
98373.29
37795.48
2548.97
63
) ()
( )
31.03.2013
1985.74
-1
1282.68
-2
333.27
-3
72.58
40.22
3714.49
\)
( )
31.03.2013
2409.18
( )
31.03.2013
(%)
3.71%
(%)
2.45%
]) ()
( )
31.03.2013
()
1798.01
() ]
2741.67
()
825.19
()
3714.49
^)
( )
31.03.2013

()
1042.12
()
635.80
() /
372.61
()
1305.31
64
e)
Amount of NPAs (Gross):

(Rs. in Cr)
CATEGORY
f)
AMOUNT
As on 31.03.2013
Sub-Std
1985.74
Doubtful-1
1282.68
Doubtful-2
333.27
Doubtful-3
72.58
Loss
40.22
Total
3714.49
Net NPAs:
(Rs. in Cr)
31.03.2013
Net NPAs
2409.18
g) NPA Ratios:
31.03.2013
Gross NPA to Gross Advances (%)
3.71%
Net NPA to Net Advances (%)
2.45%
h) Movement of NPAs (Gross):

(Rs. in Cr)
31.03.2013
(a) Opening Balance
1798.01
(b) Additions during the year
2741.67
(c) Reductions during the year
825.19
(d) Closing Balance

i)
3714.49
Movement of Provision for NPAs:

(Rs. in Cr)
31.03.2013
Movement of Specific Provisions for NPAs
(a) Opening Balance
1042.12
(b) Provisions made during the year
635.80
(c) Write-off / Write-back of excess provisions
372.61
(d) Closing Balance
1305.31
65
) ] . 33.88
) ] - 8.79 .
)
( )
31.03.2013
()
0.53
()
8.36
()
()
0.10
(.)
8.79
- 5 ] , ]
5.1

]
()
\ ()
] ( )
- ..
] ]
] ] ]
] ( , )
] ] .
] .
] , ] ] .
] ]
\ . , ] .
] ] \ , ]
i. \ , ] ] , \\ ] ] .
ii. \ , ] ] ,
] \\ ] ] .
]
.
5.2
] ]
( )
( )
31.03.2013

100% ]
100% ]
100% ] ]

66
38154.40
5456.39
37987.57
8868.05
15503.32
2400.72
8492.46
1530.78
100137.75
18255.94
j)
k)
l)
Amount of Non-Performing Investments: Rs. 33.88 cr

Amount of provisions held for non-performing investments: Rs. 8.79 cr
Movement of provisions for depreciation on investments:
(Rs. in Cr)
31.03.2013
0.53
8.36
0.10
8.79
(a) Opening Balance

(b) Provisions made during the period
(c) Write off
(d)Write back of excess provisions
(e) Closing Balance
Table DF-5: Credit Risk: Disclosures for Portfolios subject to the Standardised Approach
For portfolios under the standardized approach:
Name of the credit rating agencies used, plus reasons for any changes
Credit Rating Information Services India Limited (CRISIL)
Credit Analysis and Research Limited (CARE)
India Ratings and Research Private Limited
ICRA Limited
Small and Medium Enterprises Rating Agency(SMERA)
Brick Work Ratings India Private Limited

Two new credit rating agencies SMERA and BWI have been added during the year.
Types of exposure for which each agency is used:
For exposures with a contractual maturity of less than or equal to one year (except cash credit, overdraft) Short term
rating given by approved Rating Agencies is used.
For domestic cash credit, overdraft and for term loan exposures of over 1 year, Long Term Rating is used.
The Bank uses only publicly available solicited ratings that are valid and reviewed by the recognized ECAIs.
The Bank does not simultaneously use the rating of one ECAI for one exposure and that of another ECAI for another
exposure to the same borrower, unless the respective exposures are rated by only one of the chosen ECAIs. Further,
the bank does not use rating assigned to a particular entity within a corporate group to risk weight other entities within the
same group.
Where exposures/ borrowers have multiple ratings from the chosen ECAIs, the bank has adopted the following
procedure for risk weight calculations:
I. If there are two ratings accorded by chosen ECAIs, which map into different risk weights, the higher risk weight is
applied.
ii. If there are three or more ratings accorded by the chosen ECAIs which map into different risk weights, the
ratings corresponding to the lowest 2 ratings are referred to and higher of those two risk weights is applied.
A description of the process used to transfer public issue ratings onto comparable assets in the banking book:
No such process is applied
For exposure amounts after risk mitigation subject to the standardized approach, amount of banks outstandings (rated &
unrated) in the following major risk buckets as well as those that are deducted:
(Rs. in Cr)
31.03.2013
Fund Based
Non Fund Based
Below 100% risk weight
38154.40
5456.39
100% risk weight
37987.57
8868.05
More than 100% risk weight
15503.32
2400.72
8492.46
1530.78
100137.75
18255.94
Deducted
Total
67
- 6 ]
6.1
]
6.1.1 , ,
] ] / ] .
6.1.2
.
] , , ] ] (
] \). ] .
6.1.3 ]
] ]
1. / ]
2.
3. ] ]
4. \
5. ]
6. ( ] )
7. \ .
8. , ( )
] ] ] .
6.1.4 -
] , ] , ]
] ] ,
. ]/ .
, ] \ ] .
6.1.5 ] (] ) \
\ , ]
\ \
6.2
( )
) ] () ].
10023.24
] :
i)
: 3120.19
ii) ]
: 3696.87
iii)
: 23.76
iv) \
: 9.44

) ]
5707.81
]
68
Table DF-6: Credit Risk Mitigation: Disclosures for Standardised Approach

The general qualitative disclosure requirement with respect to credit risk mitigation including:
6.1.1 Policies and processes for, and an indication of the extent to which the bank makes use of, on- and off-balance
sheet netting
The Bank makes use of on-balance sheet and off-balance sheet netting only in cases where deposits/cash is held against the
particular loan asset.
6.1.2 Policies and processes for collateral valuation and management:
A Board approved Policy on valuation of properties obtained by the Bank, is in place.
As per RBI guidelines, the Bank adopts the comprehensive approach, which allows full offset of collateral (after appropriate
haircuts) against exposures, by effectively reducing the exposure amount by the value ascribed to the collateral.
6.1.3 Description of the main types of collateral taken by the Bank:
The main types of collateral commonly used by the Bank as risk mitigants comprise of
1.
Cash/ Bank's deposits
2.
Gold
3.
Securities issued by Central and State Government
4.
NSCs and KVPs
5.
LIC policies with a declared surrender value
6.
Debt securities (as defined in the New Capital Adequacy Framework)
7.
Units of Mutual Funds.
8.
Plant & Machinery, Land & Building (In case of NPAs only)
The Credit Risk Mitigants are applied in accordance with the RBI guidelines.
6.1.4 Main types of Guarantor counterparty and their creditworthiness:
Wherever required, the Bank obtains Personal or Corporate guarantee, as an additional comfort for mitigation of credit risk,
which can be translated into a direct claim on the guarantor, and is unconditional and irrevocable. The Creditworthiness of the
guarantor is normally not linked to or affected by the borrower's financial position. The Bank also accepts guarantee given by
State / Central Government as a security comfort. Such Guarantees remain continually effective until the facility covered is fully
repaid or settled.
6.1.5 Information about risk concentration (market or credit) within the mitigation taken:
Bank has a well dispersed portfolio of assets which are secured by various types of securities, such as:
Eligible financial collaterals listed above
Guarantees by sovereigns and well-rated corporates
Fixed and current assets of the counterparty

(Rs. in Cr)
Particulars
Amount
a. Total exposure covered by eligible financial collateral after application of haircuts.
10023.24
Of which :
I)
Gold
5740.14 Cr
ii)
Bank Deposits
4258.53 Cr
iii)
Insurance Policies
18.43 Cr
iv)
NSCs / KVPs etc.
6.14 Cr
b. Total exposure covered by guarantees
5707.81
Total exposure covered by credit derivatives
Nil
69
- 7
7.1
\\
7.1.1 , ]
] .
-
-
- ].
] ( ) () .
7.1.2 ] (. \ ]);
] \ ] ] ]
7.1.3 ]
- .
\ ( - ) 14.7% , ] .7.41
] .
.68
7.1.4 ] ] ] ] .
\ . \ - 30, 60, 90
, , \ .
7.1.5 () ] ] ] ;
, [ .
)
] ;
] .
(] )
] . .
;

\ ] .

) ] ]
]
, ] ( ) .
7.2
7.2.1
) ] .50.36
70
Table DF-7: Securitisation Exposures: Disclosure for Standardised Approach

7.1 Qualitative disclosures:
The general qualitative disclosure requirement with respect to securitisation including a discussion of:
7.1.1 The banks objectives in relation to securitisation activity, including the extent to which these activities transfer
credit risk of the underlying securitised exposures away from the bank to other entities.
Objectives of the Bank for undertaking the securitization activity
-
Reduction of asset liability mismatches;
Increase in fee based income; and
Redeployment of funds.
Credit Risk of the underlying securitized exposures (i.e. Housing Loans) is transferred to the investors of Pass Through
Certificates (PTCs).
7.1.2 The nature of other risks (e.g. liquidity risk) inherent in securitised assets;
While Liquidity risk has been taken care by providing Cash Collaterals, Credit risk is taken care by making adequate provisions.
7.1.3 The various roles played by the bank in the securitisation process and an indication of the extent of the banks
involvement in each of them;
Andhra Bank is the originator and service provider. The Bank is also the provider of credit enhancement in the following form:
Subscription to subordinate tranche (PTC-B) to the extent of 14.70% of the pool principal aggregating to Rs.7.41 crore.
Subordination of excess interest spread in the pool.
Cash collateral equivalent to Rs.68 lacs.
7.1.4 A description of the processes in place to monitor changes in the credit and market risk of securitisation
exposures.
The Bank has in place processes to access information on the performance of underlying pool of securitized exposures on an
on-going basis and in a timely manner. Such information includes percentage of loans which are 30, 60 and 90 days past due,
default rates, prepayment rates and loans in foreclosure.
7.1.5 (a) A description of the banks policy governing the use of credit risk mitigation to mitigate the risks retained
through securitisation exposures;
The Bank has provided credit enhancement by way of subscribing to the sub-ordinate PTCs and also by making suitable
provisions.
b) Summary of the banks accounting policies for securitisation activities, including:
Whether the transactions are treated as sales or financings;
The transaction is treated as a sale.
Methods and key assumptions (including inputs) applied in valuing positions retained or purchased
The Bank has only one securitization exposure. The outstanding in the loan accounts as on the date of securitization was
considered to be the value of PTCs.
Changes in methods and key assumptions from the previous period and impact of the changes;
Nil
Policies for recognizing liabilities on the balance sheet for arrangements that could require the bank to provide
financial support for securitised assets.
Nil
c) In the banking book, the names of ECAIs used for securitisations and the types of securitisation exposure for which
each agency is used.
CRISIL, the Rating Agency has rated the pool as AAA (so).
7.2 Quantitative disclosures:
7.2.1 Banking Book
d) The total amount of exposures securitised by the bank: Rs.50.36 crore
71
) \ \ ] , ] (. , ,
. )
\) ] ]
) (\)
]) ] (] ) ] \ .
2004 .50.36
\ .
^)
], ] .
] ]
.7.41 -,- ,
) ] ] , ] \ ]
\ ]
.7.41 -,- ,
) - I ] ], /, ] \ ] , ] ] \
] (] )
] .22.31 , ] 50% I 50% II ] .
7.2.2. ( )
]
- 8 ] ]
8.1

8.1.1
] ] ] ] \
.
] ] \ ,
] ] [
] ] ] .
] ] .
8.1.2 ] \
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-
-
8.1.3 ] :
, , , , , , ] ] ] ,
] , ] ] ] ] ] .
] ] ] .
72
e)
For exposures securitised losses recognised by the bank during the current period broken by the exposure
type (e.g. Credit cards, housing loans, auto loans etc. detailed by underlying security): Nil
f) Amount of assets intended to be securitised within a year: Nil, at this stage
g) Of (f), amount of assets originated within a year before securitisation: Nil
h) The total amount of exposures securitised (by exposure type) and unrecognized gains or losses on sale by
exposure type.
Bank has securitized Housing Loans to the tune of Rs. 50.36 crore during 2004.
No losses were recognised by the Bank
i) Aggregate amount of:
on-balance sheet securitisation exposures retained or purchased broken down by exposure type and
off-balance sheet securitisation exposures broken down by exposure type
Rs.7.41 crore of Securitised Housing Loans is subscribed by the Bank as PTC-B, subordinate to PTC-A.
j)
Aggregate amount of securitisation exposures retained or purchased and the associated capital charges,
broken down between exposures and further broken down into different risk weight bands for each regulatory
capital approach
Rs.7.41 crore of Securitised Housing Loans is subscribed by the Bank as PTC-B, subordinate to PTC-A.
Exposures that have been deducted entirely from Tier 1 capital, credit enhancing I/Os deducted from total
capital, and other exposures deducted from total capital (by exposure type).
Capital charge on Securitisation transaction is Rs.22.31 lacs, of which 50% is deducted from Tier I and 50% from Tier II
Capital.
7.2.2 Trading book
The Bank does not have any securitization exposure in its trading book.
Table DF-8: Market Risk in Trading Book
8.1.1 Strategies and processes:
The Bank has in place a well-defined and Board approved 'Market Risk Management Policy' and organizational structure
for Market risk management functions. The objectives of the policy are
to capture all the market related risks inherent in on and off-balance sheet items, monitor and manage them in the best
interests of the bank.
to ensure that the bank's NII is protected from the volatilities in the market related factors
to improve the sophistication levels of the risk management systems pertaining to Market Risk; and
to prepare the bank for adoption of the advanced methods of capital computation to ensure optimum utilization of the
capital sources.
Market Risk Management structure of the Bank is as under Board of Directors
Asset Liability Management Committee (ALCO)
General Manager-Integrated Risk Management Department (Chief Risk Executive)-Head Office
Market Risk Management Cell, Integrated Risk Management Department, Head Office- Integrated Mid Office
- Asset Liability Management Cell
Bank has put in place various exposure limits for market risk management such as Overnight limit, Intraday limit,
Aggregate Gap limit, Stop Loss limit, VaR limit, Broker Turnover limit, Capital Market Exposure limit, Product-wise
Exposure limit, Issuer-wise Exposure limit etc.
A risk reporting system is in place for monitoring the risk limits across different levels of the bank from trading desk to the
Board level.
73
] ] ] ] ] ] .
], ] .
, \ \ . \
.
] ] ,
.
8.1.4 ] ] ]/ ]
] ] ] ] ] , ]
, , . ] ] ] , \ , ]
, ] .
] .
/ ] ] .
\ ] ]
\ . \ .
8.2
( )
] ] ]
- \
] ]
331.77
] ( )
1.35
]
69.52
- 9 \ ]
9.1
9.1.1
\ ] [ \ , , , ,
, ] . \ ] .

\ ] ^
\ [\
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\ ] / { ] - [
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[ ^
9.1.2 ] \
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9.1.3 ] /
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9.1.4 ] ] ]/ ]
\ ] .
\ ] \ ], ] \, \, , \ ] ] .
74
The rates used for marking to market for risk management or accounting purposes are independently verified.
The reports are used to monitor performance and risk, manage business activities in accordance with banks strategy.
The reporting system ensures timelines, reasonable accuracy with automation. The reports are flexible and enhance
decision-making process.
The Dealing room activities are centralized
The reporting formats & the frequency is periodically reviewed so as to ensure that they suffice the risk monitoring,
measuring and mitigation requirements of the Bank.
8.1.4 Policies for hedging and mitigating risk and strategies and processes for monitoring the continuing
Various Board approved policies viz., Market Risk Management Policy, Country Risk Management Policy, Counterparty Bank
Risk Management Policy, Investment Policy, Forex Policy, and ALM policy are put in place for market risk management. Market
risk management policy provides the framework for risk assessment, identification and measurement and mitigation, risk limits
& triggers, risk monitoring and reporting.
Bank has in place a scoring model for categorization of International banks under Counterparty Bank Risk Management Policy.
The various exposure limits are set based on the points secured by the counterparties as per the scoring matrix.
Liquidity risk management policy lays down various guidelines to ensure that the liquidity position is comfortable at times of
stress by formulating contingency funding plan. Tolerance levels are incorporated under each time frame and any breach of the
same would signal a forthcoming liquidity constraint.
(Rs. in Cr)
Capital requirements for market risk
- Standardized duration approach
Interest rate risk
331.77
Foreign exchange risk (including gold)
1.35
Equity position risk
69.52
Table DF-9: Operational Risk:
9.1.1 Strategies and processes:
The Operational Risk Management process of the Bank is driven by a strong organizational culture and sound operating
procedures, involving corporate values, attitudes, competencies, internal control culture, effective internal reporting and
contingency planning. Policies are put in place for effective management of Operational Risk in the Bank.
The main objectives of the policy are
To have common understanding of Operational Risk and facilitate its management.
Put in place a suitable Organizational Structure.
Identification of the Operational Risks faced by the bank in each of the products / activities / processes.
Developing sound Operational Risk Management systems consistent with the guidelines issued by Reserve Bank of
India for management / mitigation of operational risks faced by the bank.
Suggesting measures for strengthening of internal control systems & procedures based on the deficiencies observed.
The Operational Risk Management Structure in the Bank is as under:
Board of Directors
Operational Risk Management Committee (ORMC)
General Manager of Integrated Risk Management Department, Head Office (Chief Risk Executive)
Operational Risk Management Cell (IRMD),Head Office

The Risk reporting consists of operational risk loss incidents / events occurred in branches / offices relating to people, process,
technology and external events. The data collected from different sources are used for preparation of MIS on loss event types.
Bank has put in place the following policies pertaining to Operational Risk Management:
Operational Risk Management Policy: The policy covers the terms of operational risk, risk management structure,
dentification, assessment, measurement and monitoring of operational risk.
75
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1
0.25%
0.50%
0.75%
1.00%
19.15
38.30
57.45
76.60

200 ( )
. 927.15
76
Compliance Policy: The Bank has in place a Comprehensive Compliance Policy. As per the Policy adopted by the Bank,
suitable organizational structure has been laid down defining the roles and responsibilities for Compliance Officers of
various Departments, Zonal Offices, other operating departments at HO and branches, so as to address group wide and
multi jurisdictional compliance risk. Suitable reporting system is also put in place to ensure effective implementation of
Compliance Policy Bank wide.
Business Line Mapping Policy: The Bank has in place Business Line Mapping Policy to map all activities of the Bank
into Eight business lines as stipulated by Reserve Bank of India and arrive at the Gross Income business-line wise.
Operational risk capital assessment:
The Bank has adopted Basic Indicator Approach for calculating capital charge for Operational Risk, as stipulated by the
Reserve Bank of India.
Table DF-10: Interest Rate Risk in Banking Book
With the deregulation of interest rates, liberalization of exchange rate system, development of secondary markets for bonds and
deepening and widening of financial system, Banks are exposed to interest rates risk, liquidity risk, exchange rate risk etc.; Asset
Liability Management outlines a comprehensive and dynamic framework for measuring, monitoring and managing various risks.
Primary objective of ALM is to maximize the Net Interest Income within the overall risk bearing capacity of the Bank.
Various stress tests are conducted by varying the liquidity and interest rate structure to estimate the resilience and/or the impact. It
evaluates the Earnings at Risk by means of parallel shift in the interest rates across assets and liabilities as also basis risk.
The stress tests are carried out by assuming stress conditions wherein embedded options are exercised like prepayment of
loans and premature closure of deposits much above the revelations of the behavioral studies to test the stress levels.
Traditional Gap Analysis method suggested by RBI is followed for calculation of IRR from Earnings perspective.
Modified Duration Gap method is followed, as per RBI guidelines, to assess the effect of interest rate changes on the Market
Value of Equity in percentage terms.
The ALCO decides on the fixation of interest rates on both assets and liabilities after considering the macro economic outlook
both global and domestic, as also the micro aspects like cost-benefit, spin offs, financial inclusion and a host of other factors.
10.1.1 Strategies and process: The strategy adopted for mitigating the risk is conducting stress tests before hand by
simulating various scenarios so as to be in preparedness for the plausible event and if possible in mitigating it. The process
for mitigating the risk is initiated by altering the mix of asset and liability composition, bringing the duration gap closer to
zero, change in interest rates etc
10.1.2 The structure and organization of the relevant risk management functions: The ALM cell reports to the
General Manager- Integrated Risk Management Department and the ALM reports on various subjects/ topics along with
the structural liquidity, the interest rate sensitivity and short term dynamic liquidity statements are presented to the ALCO on
fortnightly basis, and to the Risk Management Committee of the Board on monthly basis. The ALCO is chaired by the
Chairman & Managing Director of the Bank and has the Executive Directors and GMs of functional Departments as its
members.
10.1.3 The scope and nature of risk reporting and measurement systems: The liquidity and interest rate sensitivity
statements reveal the liquidity position and the Interest rate risk of the Bank. With the approval by the Board, tolerance level
is stipulated, within which the Bank is to operate. Any breach in the limits is reported to the ALCO which in turn directs
remedial measures to be initiated.
effectiveness of hedges/ mitigates: Mitigating measures are initiated in the ALCO on how to contain the liquidity risk and
interest rate risk. The fortnightly statements presented to the ALCO reveal the liquidity and interest rate structure based on
residual maturity. The gap position under various time buckets denotes the liquidity risk and interest rate risk. The ALCO on
studying the gap position in detail evolves the strategies to reduce the mismatches in order to minimise the liquidity and
interest rate risks.
EARNINGS AT RISK
(Rs. in crore)
Change in interest rate
Re-pricing up to 1 year
0.25%
19.15
0.50%
38.30
0.75%
57.45
1.00%
76.60
ECONOMIC VALUE OF EQUITY
For a 200 bps rate shock the drop in equity value (including reserves)
Rs. 927.15 Crore
77

1.
-

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2.
2.1
( ) 1980
2.2
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1980
2.3
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( ) ] 1970/1980 3 (1), 5, 6,
7 8 (1) ] .
2.4
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) ], 1970/1980 3 (1) 8 (1) ] .
2.5
31 \ 2013 12 ] ( 2 ,
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2.6

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78
CORPORATE GOVERNANCE REPORT

1.
CORPORATE GOVERNANCE - PHILOSOPHY

The Philosophy of Andhra Bank is to continue to remain dynamic to the ever changing needs of the customers. The
Bank believes that proper Corporate Governance facilitates effective management and control of business. This, in
turn, enables the Bank to maintain a level of business ethics and to optimize the value for all its stakeholders. The
principles of Corporate Governance require the commitment of the Bank to attain high standard of transparency,
accountability, responsibility and financial stability with the ultimate objective of building up values to the stakeholders.
The objectives can be summed up as under:
to uphold the shareholders value within the principles of ethics and legal framework of the country;
to protect interest of shareholders and other stakeholders including customers, employees and society at
large;
to ensure transparency and integration in communication and to make available full, accurate and clear
information to all concerned.
2.
BOARD OF DIRECTORS
2.1
Andhra Bank has been constituted as corresponding new Bank under the Banking Companies (Acquisition & Transfer
of Undertakings) Act, 1980.
2.2
The Board is constituted in accordance with the Banking Companies (Acquisition & Transfer of Undertakings) Act,
1980 and Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1980.
2.3
The Board is headed by the Chairman & Managing Director who is appointed by the Central Government in
consultation with the Reserve Bank of India. The Chairman & Managing Director is appointed in exercise of the
powers conferred by Clause (a) of sub section (3) of Section 9 of the Banking Companies (Acquisition & Transfer of
Undertakings) Act, 1970/1980 read with sub-clause (1) of clause 3, clause 5, clause 6, clause 7 and sub-clause (1) of
clause 8 of Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970/1980.
2.4
In addition to the Chairman and Managing Director, two Whole-time Directors (Executive Directors) of the Bank are
appointed by the Central Government in consultation with Reserve Bank of India, who are also members of the Board.
The Executive Directors of the Bank are appointed in exercise of the powers conferred by Clause (a) of sub-section (3)
of Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970/1980 read with sub-clause
(1) of clause 3 and sub-clause (1) of clause 8 of the Nationalized Banks (Management and Miscellaneous Provisions)
Scheme, 1970/1980.
2.5
As on 31st March, 2013 there are 12 Directors on the Board consisting of Three Whole Time Directors (Chairman &
Managing Director and Two Executive Directors), One Director who is an official of the Central Government
nominated by it. One Director who is an Officer of Reserve Bank of India nominated by the Central Government on the
recommendation of RBI, Two Directors nominated by Central Government in consultation with RBI, representing
Workmen and Non-Workmen Employees of the Bank, Three Directors elected amongst Shareholders other than
Central Government, One Director who has been a Chartered Accountant for not less than 15 years nominated by the
Central Government in consultation with RBI and One Director Nominated by the Central Government under sec 9
(3)(h) & 3(A).
2.6
The Board has constituted various committees as under, which provides specific and focused governance in the
important functional areas and control the affairs of the Bank:
Management Committee of the Board

Audit Committee of the Board
Shareholders and Investors Grievances Committee
Special Committee for monitoring large value frauds
D.P.C. of the Board
Share Transfer Committee of the Board
Remuneration Committee of the Board
Nomination Committee of the Board
Credit Approval Committee of the Board
Steering Committee on Human Resources Management
Information Technology Strategy Committee
Committee for Monitoring of Recovery in NPAs
79
2.7
2.8

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2.10
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2.11
, 1/2 31 \ 2013

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12
2.12
2012-2013 15 21.04.2012
06.08.2012
22.12.2012
07.05.2012
30.08.2012
12.01.2013
05.06.2012
20.09.2012
24.01.2013
25.06.2012
06.11.2012
27.02.2013
05.07.2012
28.11.2012
28.03.2013
. ..4()20.40.01/2009-10 19 2010 \\
. 20.09.2012 . 22.11.2012 . 20.09.2012 ] , .22.11.2012
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01.04.2012
31.03.2013
01.04.2012
31.03.2013

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31
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02.01.2012

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,
10.09.1975

,
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28.12.2011

2.7
2.8
The details of the committees of the Board are provided in the following pages.
The Board and its Committees meet at frequent intervals and guide the Bank to achieve its objectives in a prudent and efficient
manner to ensure high standards of customer services, ethical practices and professional Management of the Bank.
2.9
The responsibilities such as policy formulations, performance review and analysis are discharged by the Board. The
Board has delegated various powers to the Executives and Committees of Executives of the Bank in tune with the
policies laid down by the Bank. The delegated powers are periodically reviewed by the Board and necessary revision
is made for effective functioning of the Bank.
2.10
The policies of the Bank are reviewed on an annual basis and necessary modifications are effected in tune with the
changing scenario and the market demands.
2.11
The Chairman of the Board is a Whole Time Director and therefore at least 1/2 of the Board consists of Independent
Directors. Accordingly the composition of the Board as on 31st March, 2013 is as under:
Type of Directors
No. of Directors

Executive
3

Non-executive
9 (out of which 6 are

Independent Directors)

Total
12
2.12
During the year 2012-13 the Board of Directors met on 15 occasions on the following dates:
21.04.2012
06.08.2012
22.12.2012
07.05.2012
30.08.2012
12.01.2013
05.06.2012
20.09.2012
24.01.2013
25.06.2012
06.11.2012
27.02.2013
05.07.2012
28.11.2012
28.03.2013
Board also met on 20.09.2012 and 22.11.2012 to review and deliberate on Customer Service in terms of RBI direction vide
CSD.PRS No.4 (cir)/20.40.01/2009-10 dated 19th May, 2010. All the Directors had attended the meeting held on 20.09.2012.
Further all the Directors, except Sri S.K. Kalra, Executive Director, Sri Mohammad Mustafa, GOI Nominee Director and Sri K.R.
Ananda, RBI Nominee Director, have attended the meeting on 22.11.2012.
The details of attendance of each Director at the Board Meetings along with the number of meetings held during the
period are as under:
No. of Board
meetings
held during
the period
Board
Meetings
attended
Attendance at
the Twelfth AGM
held on
05.07.2012
Sri B.A. Prabhakar

01.04.2012 to
Chairman & Managing Director 31.03.2013
15
15
Attended
He is a Chartered Accountant, joined

Bank of Baroda as an Officer in the
year 1977. He worked extensively in
the area of credit, operations and
Treasury during his career in Bank of
Baroda with rich experience of 31 years.
He worked as Executive Director of
Bank of India before joining Andhra
Bank as Chairman & Managing
Director on 02.01.2012.
Sri K.K. Misra

Executive Director
15
14
Attended
Shri K.K. Misra, has 37 years of

Banking experience and is B.A., LLB
and CAIIB. He joined Canara Bank as
Officer trainee on 10.09.1975. He
worked as Managing Director of
CanFin Home Ltd., Bangalore and as
Chairman of Aligarh Gramin Bank &
Shreyas Gramin Bank. He has worked
in various capacities including that of
GM of Canara Bank before joining our
Bank on 28.12.2011 as Executive
Director.
Name of the Director
Period
01.04.2012 to
31.03.2013
81
Qualification/Experience
..

05.10.2012
31.03.2013
01.04.2012
31.08.2012
25.09.2012
31.03.103
01.04.2012
24.09.2012
01.04.2012
31.03.2013
15
14
] \
01.04.2012
31.03.2013
15
14
]
\
01.04.2012
31.03.2013
15
14

-
] ,
\
01.04.2012
31.03.2013
01.04.2012
31.03.2013
15
15
15
15
15
15
]..
01.04.2012

31.03.2013
\
82
.05.10.2012

32

()
1981

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33

.31.08.2012

1995 \ 1997

, , ,

2008 \ (),
,
,
,

20

37
\

1977
35
- \

37
]

Sri S.K. Kalra

Executive Director
05.10.2012 to
31.03.2013
Not Applicable
Sri. A.A.Taj
Executive Director
01.04.2012 to
31.08.2012
Attended
Sri Mohammad Mustafa
25.09.2012 to
31.03.2013
Not Applicable
Smt. Madhulika P Sukul

Govt. of India Nominee
Director
Sri K.R. Ananda
RBI Nominee Director
01.04.2012 to
24.09.2012
Leave of Absence
01.04.2012 to
31.03.2013
15
14
Attended
Sri Pankaj Chaturvedi

Part-time Non-Official Director
01.04.2012 to
31.03.2013
15
14
Attended
Sri Manoranjan Das

Representing Workmen
Employee Director
01.04.2012 to
31.03.2013
15
14
Leave of absence
Sri N. Venkata Ramana Reddy 01.04.2012 to

Part-time Non-Official Director 31.03.2013
15
15
Attended
Sri N. Raja Gopal Reddy

Representing Officer
Employee Director
01.04.2012 to
31.03.2013
15
15
Attended
Sri G.R. Sundaravadivel

Director elected from amongst
shareholders other than
Central Government
01.04.2012 to
31.03.2013
15
15
Attended
83
Shri Satish Kumar Kalra joined as an

Executive Director in the Bank on
05.10.2012. He has 32 years of
experience in Banking. He is Post
Graduate in Science and MBA (Finance)
with CAIIB. He joined in Allahabad
Bank as Probationary Officer during
1981. He worked in various capacities
and with rich experience in Operations,
Corporate Credit, International and
Industrial Finance. He also served as
Zonal Head of various Zones. He was
heading Treasury Branch in
Allahabad Bank in the capacity of
General Manager prior to joining the
Bank.
He is a Chartered Accountant with 33
years of experience as a Banker in
Multifarious assignments. Prior to
Joining our Bank, he was General
Manager in Union Bank of India. He
retired on superannuation as an
Executive Director in the Bank on
31.08.2012.
He is an IAS, 1995 Batch. He worked
in various capacities since 1997 and
presently he is working as Director,
Ministry of Finance, Govt. of India,
New Delhi.
Joint Secretary (Personnel),
Department of Expenditure, Ministry of
Finance since 2008.
He is a Post Graduate from Indian
Statistical Institute, Delhi. He is presently
Chief General Manager in RBI, Mumbai.
He is a Practicing Chartered Accountant
with more than 20 years experience.
He is also an advisor to many
Corporate Groups.
He is a Graduate in Arts and in Law
with 37 years of experience in the
Bank. He is representing Workmen
Employees of the Bank in the Board.
He is a Graduate in Agriculture. He is
also a consultant in Modern Agro
Farming.
He is a Post Graduate in Behavioral
Studies. He joined the Bank in the year
1977. He has an experience of 35
years in the Bank. He is representing
Non-Workmen Employees of the Bank
in the Board.
He is a retired Executive Director from
United Bank of India. He had Banking
experience of 37 years. He worked as
Banking Ombudsman in the State of
Kerala and Union Territory of
Lakshadweep.

01.04.2012
31.03.2013
\
( \ )
15
12
]

35

01.04.2012
15
13
, ,
31.03.2013
]
\
1972
2012-2013

..],
31.08.2012
.,
24.09.2012
2012-2013

,
25.09.2012
..,
05.10.2012
2.13

-
- /

1. 1.
1.
01.04.2012
() 2.
2.
31.03.2013
\
3.\\ 3.\\

4.]
4.]
5.
5.
6.
6.
7.
7.

1. 1.
01.04.2012

- 2.
31.03.2013
3.
2. 4.
- ( )
3.
5. ]
( ) 6.
7.
8.
9.

1.
1. - (05.10.2012 05.10.2012

2.
)
31.03.2013
3.
4.
5. ]
6.
7.
8.
9.
10.
84
Sri K Raghuraman
01.04.2012 to
15
12
Attended
Director elected from amongst 31.03.2013
Central Government
(Re-elected)
Sri Nandlal L. Sarda
01.04.2012 to
15
13
Attended
Director elected from amongst 31.03.2013
Central Government
Names of persons who ceased to be Directors during the year 2012-13
Sri A.A. Taj, Executive Director
Smt. Madhulika P. Sukul, Govt. of India Nominee Director
Names of persons who are appointed as Directors during the year 2012-13
Sri Mohammad Mustafa, Govt. of India Nominee Director
Sri S.K. Kalra, Director
He is a Chartered Accountant and

retired as an Executive Director from
Punjab National Bank. He had 35
years of Banking experience in various
capacities.
Professor in the Department of
Computer Science and Engineering at
IIT, Powai, Mumbai. He is in the teaching
profession since 1972.
Date of Cessation
31.08.2012
24.09.2012
Date of Appointment
25.09.2012
05.10.2012
2.13 Particulars of Directors

Name of the
Director
Directorship/ Membership
of Committees in other
Companies
Membership of the
Board Committees in
the Bank
Chairman /
Chairperson of the
Board Committees
Period of
Directorship
from to
01.04.2012 to
31.03.2013
Sri B.A. Prabhakar

Chairman & Managing
Director
1.India International
Bank (Malaysia) BHD
as Director
1.Management Committee
2. D.P.C.
3. Special Committee for monitoring
large value frauds
4.Risk Management Committee
5.Credit Approval Committee
6. Steering Committee of Board on
Human Resources
7.Committee for Monitoring of
Recovery in NPAs
1. Management Committee
2. D.P.C.
3.Special Committee for monitoring
large value frauds
5.Credit Approval Committee
Human Resources
7.Committee for Monitoring
of Recovery in NPAs
Sri K.K. Misra

Executive Director
1. Andhra Bank Financial

Services Ltd Chairman
of the Board.
2. IndiaFirst Life Insurance
Limited (Nominee Director)
3. ASREC India Ltd.
(Nominee Director)
2. Audit Committee
3. D.P.C.
4. Shareholders and Investors
Grievances Committee
5. Risk Management Committee
6. Share Transfer Committee
7. Credit Approval Committee
Human Resources
Recovery in NPAs
None
01.04.2012 to
31.03.2013
Sri S.K. Kalra

Executive Director
None
2. Audit Committee
3. D.P.C.
Human Resources
Recovery in NPAs
10.IT Strategy Committee

(Chairman w.e.f. 05.10.2012)
05.10.2012 to
31.03.2013
85
1.
-
2.
( )
3.
( )
] \
-
( )
1. {
{ . .
(-\ )
2. ]
( \
)
3.
..
]
\
1.
2.
3.
4.
5. ]
6.
7.
8.
1.
2.
3. ]
4.\\

5.
6.
7.
8.
1.
2.
3. ]
4. \\

5.
6.
7.
1.
2.
3.
4.
1.
2.
3.
1. (02.11.2011
31.08.2012 )
01.04.2012
31.08.2012
1.
2.
25.09.2012
31.03.2013
1.
2.
01.04.2012
24.09.2012
01.04.2012
31.03.2013
01.04.2012
31.03.2013
1. . (01.04.2012
13.07.2012 14.01.2013 10.05.2013)

2. /
(01.04.2012 04.06.2012)
3. ]
1. . (01.04.2012
29.07.2012 30.01.2013
31.03.2013)
2. /
(05.06.2012 31.03.2013)
86
01.04.2012
31.03.2013
01.04.2012
31.03.2013
Sri A.A. Taj

Executive Director
1. Andhra Bank Financial

Services Ltd Chairman
of the Board.
2. IndiaFirst Life Insurance
Limited (Nominee Director).
3. ASREC India Ltd.
(Nominee Director)
2. Audit Committee
3.D.P.C.
Human Resources

(Chairman w.e.f. 02.11.2011
to 31.08.2012)
01.04.2012 to
31.08.2012
Sri Mohammad Mustafa None

Govt. of India
Nominee Director
1.Audit Committee
2.D.P.C.
4.Special Committee for Monitoring
Large value Frauds
5.Remuneration Committee
6. Nomination Committee
Human Resources
8. Committee for Monitoring of
Recovery in NPAs
25.09.2012 to
31.03.2013
Smt. Madhulika P Sukul None

Govt. of India
Nominee Director
1.Audit Committee
2.D.P.C.
Large value Frauds
6.Nomination Committee
Human Resources
01.04.2012 to
24.09.2012
Sri K.R. Ananda

None
2.Audit Committee
3.D.P.C
None
01.04.2012 to
31.03.2013

Part-time Non-Official
Director (CA Category)
1. Perfect Business Advisory 1. Management Committee

Services Pvt. Ltd. (Unlisted 2. Audit Committee
Indian Company)
2. Vijayalakshmi Printing
Works Pvt. Ltd. (Unlisted
Indian Company)
3. First Serv Solutions
Private Limited
Audit Committee
01.04.2012 to
31.03.2013
Sri Manoranjan Das

Workmen Employee
Director
None
(01.04.2012 to 13.07.2012 &
14.01.2013 to 10.05.2013)
2.Shareholders and Investors
Grievances Committee (01.04.2012
to 04.06.2012)
None
01.04.2012 to
31.03.2013
Sri N.V.R. Reddy

Part-time Non-Official
Director
None
(01.04.2012 to 29.07.2012 &
30.01.2013 to 31.03.2013)
Grievances Committee (05.06.2012
to 31.03.2013)
None
01.04.2012 to
31.03.2013
87
]
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.

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1. -
. (
- )
2.
\ (.)

3. \\
.
4.
5.
1. (01.04.2012
29.07.2012 30.01.2013
31.03.2013)
2./
3.]
1. (14.07.2012 13.01.2013)
2. /
3. ]
4. \\

5.
6.
(05.06.2012 )
1. 1.
(30.07.2012-29.01.2013)
2.
3.
4. ]
5. \\

6.
7. (30.08.2012 )
8.
(05.06.2012 )
01.04.2012
31.03.2013
01.04.2012
31.03.2013
1.
01.04.2012
-
31.03.2013

2. ]

3.
4. .
]

5.
{ .
6.

7.

8.
..
9.
..-
10.
11.
1.
1. (14.09.2012
01.04.2012
. (,
13.03.2013)
31.03.2013
)
2.

\
2. 3.
(, )
2012-2013 , .. .05.10.2012 .25.09.2012

88

Large value Frauds.
Sri N. Raja Gopal Reddy None
Officer Employee
Director
(From 01.04.2012 to 29.07.2012 &
30.01.2013 to 31.03.2013)
None
01.04.2012 to
31.03.2013

Director elected from
amongst shareholders
other than Central
Government
1. Director REPCO Home

Finance Ltd (Subsidiary of
REPCO Bank
Govt. of India Enterprise)
2. Hindustan Photo Films
Manufacturing Company Ltd.
Nominee Director of UTI
AMC (P) Ltd.
None
(14.07.2012 to 13.01.2013)
4. Special Committee for Monitoring
Large Value Frauds
5. Remuneration Committee
Human Resources (w.e.f.05.06.2012)
01.04.2012 to
31.03.2013
Sri K Raghuraman
other than Central
Government
1.Birla Ericson Opticals Ltd.,

- Director and member in
Audit Committee.
2.Nagarjuna Agrichem Ltd.,
- Director and Member in
Audit Committee.
3. Suvidha Park Lifts Ltd.,
4. Can Bank Factors Ltd., Member in Remuneration
Committee and Member in
Committee of Directors on
Risk Management.
5.Oriental Carbon &
Chemicals Ltd.,
6.Centbank Financial
Services Ltd., Director &
Member in Audit Committee.
7.Laderup Financial
Services Ltd.,
8.Lanco Budhil Hydro Power
Pvt Ltd., - Member
9.Laderup Corporate Advisory
Pvt Ltd., - Member
10. SPMPAL Pension Trust
- Trustee
11. SME Council, Vice
Chairman.
(30.07.2012 to 29.01.2013)
2. Audit Committee
5. Special Committee for monitoring
large value frauds
(w.e.f.30.08.2012)
8.Steering Committee of the Board on
Human Resources (w.e.f.05.06.2012)
01.04.2012 to
31.03.2013
Sri Nandlal L. Sarda

other than Central
Government
1.IDBI Intech Limited

(Member, Audit Committee)
2.Clearing Corporation
of India (Chairman,
IT Committee)
(14.09.2012 to 13.03.2013)
2. Remuneration Committee
01.04.2012 to
31.03.2013
IT Strategy Committee
During the year 2012-13, Sri S.K. Kalra joined the Bank as Executive Director w.e.f. 05.10.2012 and Sri Mohammad Mustafa joined the Board on
25.09.2012 as GOI Nominee Director in place of Smt. Madhulika P. Sukul.
89
2.14 31.03.2013 .
1.
02.01.2012 1977
31 , \ ] ] 8
15 , 2008
2.
.28.12.2011 37
10.09.1975 , . ,
[ , \
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.05.10.2012 ()
1981 32 \,
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.14.03.2012
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90
2.14 Profile of Directors on the Board as on 31.03.2013

1. Sri B.A. Prabhakar
He is the Chairman & Managing Director of the Bank w.e.f. 02.01.2012. He is a Chartered Accountant and joined as an
Officer in Bank of Baroda in 1977. He worked extensively in the area of Credit, Operations and Treasury during his career
in Bank of Baroda spanning 31years including overseas assignment for more than 8 years. Before joining Andhra Bank he
was an Executive Director of Bank of India from 15th October, 2008.
2. Sri K.K. Misra
He is the Executive Director of Andhra Bank w.e.f. 28.12.2011. He is a graduate in Arts and in Law with CAIIB. He had 37
years of Banking experience. He joined Canara Bank as Officer trainee on 10.09.1975 and worked in various capacities
as Managing Director of CanFin Homes Ltd., and Chairman of Aligarh Gramin Bank & Shreyas Gramin Bank. He also
worked as Regional Head, Zonal Head in Bangalore and Chandigarh Circles of Canara Bank.
3. Sri S.K. Kalra
He joined as an Executive Director in the Bank on 05.10.2012. He is a Post Graduate in Science and MBA (Finance) with
CAIIB. He joined Allahabad Bank as Probationary Officer during 1981; he had 32 years of experience in the Bank. He
worked in various capacities in Operations, Industrial Finance, and Corporate Credit and acquired good exposure in
various fields like Operations, Corporate Credit, International and Industrial Finance. He also served as Zonal Head of
various Zones. Before joining the Bank as an Executive Director he was heading Treasury Branch in Allahabad Bank as
General Manager.
4. Sri Mohammad Mustafa
He joined the Board on 25.09.2012 as GOI Nominee Director. He belongs to 1995 IAS Batch of U.P. Cadre. He worked in
various capacities like Joint Secretary, Special Secretary, Additional Commissioner, District Magistrate since 1997 in
Land Revenue Management and District Administration, Rural Development, Finance, Commercial Tax, Education and
Higher Education Department, Personnel and General Administration and Backward Classes Welfare etc. Presently
working as Director, Ministry of Finance, Govt. of India, New Delhi.
5. Sri K.R. Ananda
He is a Post Graduate from Indian Statistical Institute, Delhi. He is Chief General Manager, Reserve Bank of India,
Mumbai. He is RBI Nominee Director on the Board since 30.07.2010. He has 29 years Banking experience in various
capacities. He worked in various departments of RBI and as Banking Ombudsman, Karnataka and as Regional Director
of RBI at Chennai.
6. Sri Pankaj Chaturvedi
He is a practicing Chartered Accountant having experience of more than 20 years. He is a partner of M/s Chaturvedi & Co.,
Chartered Accountants, New Delhi, a leading CA Firm. He has experience in handling Audits of Large Corporate Groups
and Banks. He is also an advisor to many corporate groups on Corporate Finance and Mergers & Acquisitions.
7. Sri Manoranjan Das
He is a graduate in Arts and in Law. He is working in the Bank since 1976 and presently working as Special Assistant at
Courtpeta Branch, Berhampur. He is representing Workmen Employees of the Bank in the Board. He is presently AIBEA
President, Orissa State General Secretary, AIBEA, General Council Member, AIBEA and IRC Member.
8. Sri N. Venkata Ramana Reddy
He is a graduate in Agriculture and a Consultant in Agriculture Modern Agro Farming. He had varied experience as Vice
Chairman, Spices Board (GOI), Member Trustee, Tirumala Tirupati Devasthanams, Member Trustee, Vizag Port Trust,
Director, Forest Development Corporation and Member, Censor Board.
9. Sri N. Raja Gopal Reddy
He is a post graduate in Behavioral Studies. Joined Andhra Bank during 1977 and worked in various branches as Manager
for more than 14 years. Presently working as Deputy Manager, Centralised Cheque Processing Centre, Hyderabad. He is
representing Non-workmen Employees of the Bank in the Board.
10. Sri G.R. Sundaravadivel
He is a retired Executive Director from United Bank of India with more than 37 years of Banking experience, of which 14
years was in the Top Management Cadre in Indian Bank and above 4 years as Whole Time Director in United Bank of
India. He also worked as Banking Ombudsmen for the State of Kerala and UT Lakshadweep for a period of 2 years.
11. Sri K Raghuraman
He is a Chartered Accountant and retired as Executive Director in Punjab National Bank. Earlier he worked as General
Manager for over 7 years in various departments of Central Bank of India. He held the position of Chairman of 'India
Cooperation committee of Master Card International' as well as the Member of various industry level Committees of IBA.
He has been re-elected as Director from amongst shareholders other than Central Government from 14.03.2012 for a
period of three years.
91
12.
, , ] 1972
] \ ]

3. /
] , /
\
.3.1
, , , ^/ ],
] ] , , , \

, , ]
14 ] 21.04.2012
30.08.2012
24.01.2013
21.05.2012
20.09.2012
27.02.2013
25.06.2012
06.11.2012
18.03.2013
05.07.2012
28.11.2012
28.03.2013
06.08.2012
22.12.2012
] \
..

01.04.2012 31.03.2013
14
14
..

01.04.2012 31.03.2013
14
13
..

05.10.2012 31.03.2013
7
7
..]

01.04.2012 31.08.2012
5
5\

01.04.2012 31.03.2013
14
13
] \
- ( )
01.04.2012 31.03.2013
14
13
]
\
01.04.2012 13.07.2012
14.01.2013 31.03.2013
8
8
...
-
01.04.2012 29.07.2012
30.01.2013 31.03.2013
7
7
.]
\
01.04.2012 13.09.2012
14.03.2013 31.03.2013
8
8
]..

\
14.07.2012 13.01.2013
6
6
92
12. Sri Nandlal L. Sarda

He is a Professor in the Department of Computer Science and Engineering at IIT, Powai, Mumbai. He is in the teaching
profession since 1972. His research interests are in the areas of Database Systems and Software Engineering. He is
associated with many companies and government institutions as a consultant. He has served as Director on the Board of
Union Bank of India. He is presently on the Board of Directors of Clearing Corporation of India and IDBI. He is also serving
on the Technical Advisory Committees of many organizations.
3. COMMITTEE ON THE BOARD OF DIRECTORS / EXECUTIVES
Various committees of Directors have been constituted in terms of Reserve Bank of India, Government of India guidelines
/ directives in order to expedite the decision making and proper monitoring and follow up of the various activities falling
within their terms of reference.
The Committees of the Board are as under:3.1 Management Committee of the Board
Pursuant to the directive of the Government of India, Ministry of Finance, the Management Committee of the Board is
constituted by the Board of Directors for considering various business matters namely sanctioning of credit proposals,
loan compromise / write off proposals, approval of capital and revenue expenditure, acquisition and hiring of premises,
investments, donations etc.
The committee consists of Chairman & Managing Director, Executive Directors, Nominee Director of Reserve Bank of India and
three independent Non Official Directors. In all 14 Meetings of the Committee were held during the year, on the following dates:
21.04.2012
30.08.2012
24.01.2013
21.05.2012
20.09.2012
27.02.2013
25.06.2012
06.11.2012
18.03.2013
05.07.2012
28.11.2012
28.03.2013
06.08.2012
22.12.2012
The attendance of the Members at the Management Committee meetings along with the number of meetings held during the
period is given below in the table:
Period
No. of M.C. meetings
No. of M.C.
held during the period
meetings attended
Sri B.A. Prabhakar
01.04.2012 to 31.03.2013
14
14
Sri K.K. Misra
Executive Director
01.04.2012 to 31.03.2013
14
13
Sri S.K. Kalra
Executive Director
05.10.2012 to 31.03.2013
7
7
Sri A.A. Taj
Executive Director
01.04.2012 to 31.08.2012
5
5
Sri K.R. Ananda
01.04.2012 to 31.03.2013
14
13
(CA Category)
01.04.2012 to 31.03.2013
14
13
Sri Manoranjan Das
Workmen Employee Director
01.04.2012 to 13.07.2012
14.01.2013 to 31.03.2013
8
8
Sri N.V.R. Reddy
01.04.2012 to 29.07.2012
30.01.2013 to 31.03.2013
7
7
Officer Employee Director
01.04.2012 to 13.09.2012
14.03.2013 to 31.03.2013
8
8
shareholders other than Central
Government
14.07.2012 to 13.01.2013
6
6
93
.

\
30.07.2012 29.01.2013
7
5

\
14.09.2012 13.03.2013
6
5
3.2
] \ , ]
,

9
06.05.2012
05.11.2012
25.06.2012
24.01.2013
6.08.2012
04.02.2013
18.08.2012
18.03.2013
20.09.2012
\ ]
, \ / ]
/ , ( )
\-
, \
]
] , ]
] \

] -

] \
( 14.03.2012 )
9
9
- ( )
(01.04.2012 31.03.2013 )

9
9
(01.04.2012 31.03.2013 )

4
4

(05.10.2012 31.03.2013)
]
4
4

(01.04.2012 31.08.2012)

4
1

(25.09.2012 31.03.2013)

5
4

(01.04.2012 24.09.2012)

/ - /
9
9

(01.04.2012 31.03.2013 )
94
Sri K. Raghuraman
Government
30.07.2012 to 29.01.2013
7
5
Sri Nandlal L Sarda
Government
14.09.2012 to 13.03.2013
6
5
3.2 Audit Committee of the Board
Pursuant to the directives of Reserve Bank of India, the Audit Committee of the Board was constituted / re-constituted with five
directors viz. Executive Director, Nominee Directors of Government of India and Reserve Bank of India and Two Independent
Non Official Directors. One of the Independent Non-Official Directors chairs the meetings of the Audit Committee.
The Committee met 9 times during the year under review, on the following dates:
06.05.2012
05.11.2012
25.06.2012
24.01.2013
06.08.2012
04.02.2013
18.08.2012
18.03.2013
20.09.2012
The Audit Committee of the Board provides directions and also oversee the operations of the total Audit Functions of the
Bank which include organization, operationalization and quality control of the internal audit and inspection system and follow
up of the Statutory / External Audit of the Bank and Annual Financial Inspection by Reserve Bank of India.
The Committee reviews internal inspection / audit functions, follow up on all issues raised in the Long Form Audit Report (LFAR) and
interacts with the external auditors in respect of LFAR. The committee also reviews the compliance of the Accounting Standards in
terms of reporting process, disclosure of financial information and compliance in terms of other statutory requirements.
The Committee reviews inspection reports of the specialized and extra large branches and all branches with unsatisfactory
ratings. It also reviews inter branch adjustment accounts, unreconciled long outstanding entries in inter bank accounts
besides reviewing the position of house keeping.
The attendance of members at the Audit Committee meetings along with the number of meetings held during the period is
given below in the table:
Number of Audit
Number of
Type of Director
Committee meetings
meetings
held during the period
attended
of their tenure
Chairman (w.e.f. 14.03.2012)
9
9
(CA Category) (01.04.2012 to
31.03.2013)
Sri K.K. Misra
Member
9
9
Executive Director
(From 01.04.2012 to 31.03.2013)
Sri S.K. Kalra,
Member
4
4
Executive Director
(From 05.10.2012 to 31.03.2013)
Sri A.A. Taj
Member
4
4
Executive Director
(From 01.04.2012 to 31.08.2012)
Member
4
1
Govt. of India Nominee Director
(From 25.09.2012 to 31.03.2013)
Member
5
4
(From 01.04.2012 to 24.09.2012)
Sri K.R. Ananda
Member
9
9
(From 01.04.2012 to 31.03.2013)
95

\ (01.04.2012
31.03.2013 )
3.3 ] ()
] ] ] , ]
, 28.06.2001 ] ,
, \ \, ]
] ] \\
] 4
06.05.2012
05.11.2012
25.06.2012
27.02.2013
] .

] ]

01.04.2012 31.03.2013
4
4

01.04.2012 31.03.2013
4
4

05.10.2012 31.03.2013
2
2
]

01.04.2012 31.08.2012
2
2

25.09.2012 31.03.2013
2

01.04.2012 24.09.2012
2
2
]
\
01.04.2012 31.03.2013
4
4
]
\
01.04.2012 31.03.2013
4
4
]
01.04.2012 31.03.2013
4
4
\

01.04.2012 31.03.2013
4
4
\
3.4 ...

]\
, 5 1. , (01.04.2012 31.03.2013)
2. , (01.04.2012 31.03.2013)
3. .., (05.10.2012 31.03.2013)
96
Sri K. Raghuraman
Government (From 01.04.2012
to 31.03.2013)
Member
3.3 Risk Management Committee of Board (RMC)

The Bank has constituted a Risk Management Committee of the Board on 28.06.2001 with an objective to empower one
group with full responsibility of evaluating overall risks faced by the Bank and determining the level of risks, which will be in
the best interest of the Bank. The Committee is constituted with the Chairman & Managing Director, Executive Director
Govt. of India Nominee Director and three other Directors. The Committee met four times during the year and discussed
various matters relating to operational, market and credit risks of the Bank.
The Risk Management Committee met four times during the year on the following dates:
06.05.2012
05.11.2012
25.06.2012
27.02.2013
The attendance of the members at the Risk Management Committee meetings along with the number of meetings held
during the period of their tenure is given below in the table:
Type of Director
Number of Risk
Management Committee
meetings held during the
period of their tenure
Number of
meetings
attended
Sri B.A. Prabhakar

Chairman
From 01.04.2012 to 31.03.2013
Sri K.K. Misra

Executive Director
Member
From 01.04.2012 to 31.03.2013
Sri S.K. Kalra

Executive Director
Member
From 05.10.2012 to 31.03.2013
Sri A.A. Taj

Executive Director
Member
From 01.04.2012 to 31.08.2012

Member
From 25.09.2012 to 31.03.2013

Member
From 01.04.2012 to 24.09.2012
Sri Manoranjan Das

Member
From 01.04.2012 to 31.03.2013

Member
From 01.04.2012 to 31.03.2013

Central Government
Member
From 01.04.2012 to 31.03.2013
Sri K Raghuraman
Central Government
Member
From 01.04.2012 to 31.03.2013
3.4 D.P.C. of the Board

D.P.C. of the Board is constituted in terms of Govt. of India directions to specifically look into the Review of the position of
disposal of vigilance disciplinary cases and Departmental Enquiries in the Bank.
Presently, the Committee consists of 5 Directors:1. Sri B.A. Prabhakar, Chairman & Managing Director (From 01.04.2012 to 31.03.2013)
2. Sri K.K. Misra, Executive Director (From 01.04.2012 to 31.03.2013)
3. Sri S.K. Kalra, Executive Director (From 05.10.2012 to 31.03.2013)
97
4. ..], , (01.04.2012 31.08.2012)

5. , (25.09.2012 31.03.2013)
6. , (01.04.2012 24.09.2012)
7. , { (01.04.2012 31.03.2013)
4 25.06.2012
22.12.2012
20.09.2012
18.03.2013
, , \

]

01.04.2012 31.03.2013
4
4

01.04.2012 31.03.2013
4
4

05.10.2012 31.03.2013
2
2
]

01.04.2012 31.08.2012
1
1

25.09.2012 31.03.2013
2
2

01.04.2012 24.09.2012
2
2

01.04.2012 31.03.2013
4
4
3.5 \\
{ . 1.00
, \\ ,
5
1. , (01.04.2012 31.03.2013)
2. , (25.09.2012 31.03.2013)
3. , (01.04.2012 24.09.2012)
4. , (01.04.2012 31.03.2013)
5. ] , (01.04.2012 31.03.2013)
6. , (01.04.2012 31.03.2013)
4 06.05.2012
22.11.2012
30.08.2012
27.02.2013
\\ , , \
] \\

01.04.2012 31.03.2013
4
4

25.09.2012 31.03.2013
2
-98
4. Sri A.A. Taj, Executive Director (From 01.04.2012 to 31.08.2012)

5. Sri Mohammad Mustafa, Govt. of India Nominee Director (From 25.09.2012 to 31.03.2013)
6. Smt. Madhulika P. Sukul, Govt. of India Nominee Director (From 01.04.2012 to 24.09.2012)
7. Sri K.R. Ananda, RBI Nominee Director (From 01.04.2012 to 31.03.2013)
The Committee met 4 times during the year on the following dates:
25.06.2012
22.12.2012
20.09.2012
18.03.2013
The attendance of the members at the D.P.C. meetings along with the number of meetings held during the period of
their tenure during the year is given below in the table:
Type of Director
Number of D.P.C.
meetings held
during the period
Number of
meetings
attended
Sri B.A. Prabhakar

Chairman
From 01.04.2012 to 31.03.2013
Sri K.K. Misra

Executive Director
Member
From 01.04.2012 to 31.03.2013
Sri S.K. Kalra

Executive Director
Member
From 05.10.2012 to 31.03.2013
Sri A.A.Taj
Executive Director
Member
From 01.04.2012 to 31.08.2012

Member
From 25.09.2012 to 31.03.2013

Member
From 01.04.2012 to 24.09.2012
Sri K.R. Ananda

Member
From 01.04.2012 to 31.03.2013
3.5 Special Committee for Monitoring Large Value Frauds

Special Committee for Monitoring Large Value Frauds, a Board level Committee is constituted as per the directions of
Reserve Bank of India to specifically look into monitoring and following up the cases of frauds involving an amount of `1.00
crore & above exclusively.
Presently, the Committee consists of 5 Directors:1. Sri B.A. Prabhakar, Chairman & Managing Director (From 01.04.2012 to 31.03.2013)
2. Sri Mohammad Mustafa, Govt. of India Nominee Director (From 25.09.2012 to 31.03.2013)
3. Smt. Madhulika P. Sukul, Govt. of India Nominee Director (From 01.04.2012 to 24.09.2012)
4. Sri N.V.R. Reddy, Director (From 01.04.2012 to 31.03.2013)
5. Sri G.R. Sundaravadivel, Director (From 01.04.2012 To 31.03.2013)
6. Sri K. Raghuraman, Director (From 01.04.2012 to 31.03.2013)
The Committee met four times during the year:
06.05.2012
22.11.2012
30.08.2012
27.02.2013
The attendance of the members at the Meetings of Special Committee for Monitoring Large Value Frauds along with the
number of meetings held during the period of their tenure during the year is given below in the table:
Sri B.A. Prabhakar
Type of Director
Number of meetings of Special

Number of
Committee for Monitoring Large
meetings
Value Frauds held during the period attended
Chairman
From 01.04.2012 to 31.03.2013

Member
Govt. of India Nominee Director From 25.09.2012 to 31.03.2013
--
99

01.04.2012 24.09.2012
2
1

01.04.2012 31.03.2013
4
4
]
01.04.2012 31.03.2013
4
4

01.04.2012 31.03.2013
4
4
3.6 3.6.1 - " "
6 1. ., 14.03.2012 ( \ )
2. .., (01.04.2012 31.03.2013 )
3. .., (05.10.2012 31.03.2013 )
4. ], (01.04.2012 31.08.2012 )
5. ] , \ (01.04.2012 04.06.2012 )
6. ..., (05.06.2012 31.03.2013 )
7. ] , \ (01.04.2012 31.03.2013 )
8. ].., \ (01.04.2012 31.03.2013 )
\ 3 , ( 25.06.2012, 22.11.2012 28.03.2013)

]

01.04.2012 31.03.2013
3
3

/ 01.04.2012 31.03.2013
3
3

/ 05.10.2012 31.03.2013
2
1
]
/ 01.04.2012 31.08.2012
1
1
]
01.04.2012 04.06.2012 \

05.06.2012 31.03.2013
3
3
]
/ \ 01.04.2012 31.03.2013
3
3
]
\
01.04.2012 31.03.2013
3
3
100

Member
From 01.04.2012 to 24.09.2012
Sri N.V.R. Reddy

Director
Member
From 01.04.2012 to 31.03.2013

Director
Member
From 01.04.2012 to 31.03.2013
Sri K. Raghuraman
Director
Member
From 01.04.2012 to 31.03.2013
3.6 Shareholders and Investors Grievances Committee

3.6.1 The Bank has constituted a Committee of the Board - Shareholders and Investors Grievances Committee to
specifically look into the redressal of the shareholders grievances. Presently the Committee consists of 6 Directors viz.,
1. Sri K Raghuraman, Chairman of the Committee (Director elected from amongst shareholders other than Central
Government) since 14.03.2012
2. Sri K.K. Misra, Executive Director (From 01.04.2012 to 31.03.2013)
3. Sri S.K. Kalra, Executive Director (From 05.10.2012 to 31.03.2013)
4. Sri A.A. Taj, Executive Director (From 01.04.2012 to 31.08.2012)
5. Sri Manoranjan Das, Workmen Employee Director (From 01.04.2012 to 04.06.2012)
6. Sri N.V.R. Reddy, Director (From 05.06.2012 to 31.03.2013)
7. Sri N. Raja Gopal Reddy, Officer Employee Director (From 01.04.2012 to 31.03.2013)
8. Sri G.R. Sundaravadivel, Director elected from amongst shareholders other than Central Government (From
01.04.2012 to 31.03.2013)
The Shareholders and Investors Grievances Committee met three times during the current year i.e., on 25.06.2012,
22.11.2012 and 28.03.2013 and reviewed the position of the complaints.
Type of Director
No. of Meetings of shareholders and Investors

Held during the tenure
Attended
Sri K Raghuraman
Chairman of the Committee
From 01.04.2012 to 31.03.2013
Sri K.K. Misra

Member / Executive Director
From 01.04.2012 to 31.03.2013)
Sri S.K. Kalra,

From 05.10.2012 to 31.03.2013
Sri A.A.Taj
From 01.04.2012 to 31.08.2012
Sri Manoranjan Das

w.e.f. 01.04.2012 to 04.06.2012
Sri N.V.R. Reddy, Director

(w.e.f. 05.06.2012 to 31.03.2013)

Member / Officer Employee Director
w.e.f. 01.04.2012 to 31.03.2013

Director elected from amongst shareholders other
than Central Government
(From 01.04.2012 to 31.03.2013)
101
3.6.2 ] \ , 47 , ] ] \
] . , \
3.6.3 ] , /
5745/32
31.03.2013

3.7
- ]
.., , ( ) (05.10.2012 31.03.2013)
, , (01.04.2012 31.03.2013)
], , ( ) (01.04.2012 31.08.2012)
, (01.04.2012 31.03.2013)
., (01.04.2012 31.03.2013)
2012-2013 1301 ] 6,20,588 2012-13
25.06.2012, 22.11.2012 28.03.2013 ] 15
]
] ]\
/\ ]
31.03.2013
3.8
() 20/1/2005-, 09.03.2007 . 24.03.2007
]
] " "
\ 31 \

,
, / .
.14.03.2012 1. , ( ) (25.09.2012 31.03.2013)
2. , ( ) (01.04.2012 24.09.2012)
3. ..,
4. ] ,
5. ,
.05.06.2012 ,
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3.9
30.11.2007 - - ]

1. , , ( ) (25.09.2012 31.03.2013)
2. , ( ) (01.04.2012 24.09.2012)
3. ] \, -
4. , -
102
3.6.2 In terms of Clause 47 of the Listing Agreement entered into with the Stock Exchanges, Mr. T.R. Ramabhadran,
Company Secretary is designated as the Compliance Officer for the purpose of complying with the various terms of the
Listing Agreement with the Stock Exchanges and the Directives issued by SEBI.
3.6.3 The total number of requests / complaints received by the Bank and the Share Transfer Agents, M/s. MCS Limited,
Mumbai during the year under review was 5745 / 32 respectively.
Position as on 31.03.2013 :
3.7
Number of requests / complaints not resolved to the

satisfaction of the Shareholders is
NIL
Number of complaints pending
NIL
Share Transfer Committee of Board

Share Transfer committee is being constituted from time to time with the following members:
Sri S.K. Kalra, Executive Director, Member (Chairman of the Committee) (From 05.10.2012 to 31.03.2013)
Sri K.K. Misra, Executive Director, Member (From 01.04.2012 to 31.03.2013)
Sri A.A. Taj, Executive Director, Member (Chairman of the Committee) (From 01.04.2012 to 31.08.2012)
Sri N.V.R. Reddy, Director (from 01.04.2012 to 31.03.2013)
Sri K. Raghuraman, Director (from 01.04.2012 to 31.03.2013)
The committee confirmed 1301 share transfers aggregating 6,20,588 shares during the year 2012-13. The Share
Transfer Committee met three times during the year 2012-13 on 25.06.2012, 22.11.2012 and 28.03.2013. The Bank
ensures that all the transfers are duly effected within a period of 15 days from the date of their lodgment.
The Bank further ensures that complaints are disposed off in a time bound manner and the complaints which needs
enquiry for final disposal are attended with immediate interim reply / information to the shareholders.
There was no share transfer request pending for more than a fortnight and no shares are pending for transfer as on 31.03.2013.
3.8
Remuneration Committee:
The Bank has in terms of Ministry of Finance (MOF) letter no. F20/1/2005-BOI dated 09.03.2007, constituted a
Remuneration Committee of the Board on 24.03.2007. In terms of MOF letter, the Whole Time Directors of Public
Sector Banks would be entitled to performance linked incentives subject to achievement of broad quantitative
parameters fixed for performance evaluation matrix based on the Statement of Intent of Goals and qualitative
parameters and bench marks based on various compliance reports during the last financial year. The basis of
evaluation of the quantitative and qualitative parameters would be the Banks audited financial data as on March 31st of
the relevant year.
The Remuneration Committee shall evaluate the performance of the Bank / full time Directors for deciding the
performance linked incentives to be paid to the whole time Directors i.e., Chairman & Managing Director and Executive
Directors of the Bank.
The Committee is reconstituted on 14.03.2012 with the following members:
1. Sri Mohammad Mustafa, GOI Nominee Director (Chairman of the Committee) (From 25.09.2012 to 31.03.2013)
2. Smt. Madhulika P Sukul, GOI Nominee Director (Chairperson of the Committee) (From 01.04.2012 to 24.09.2012)
3. Sri K.R. Ananda, RBI Nominee Director
4. Sri G.R. Sundaravadivel, Director
5. Sri Nandlal L. Sarda, Director
The committee met on 05.06.2012 and Smt. Madhulika P. Sukul, GOI Nominee Director along with other members
attended the meeting. Leave of absence sanctioned to Sri K.R. Ananda, RBI Nominee Director.
3.9
Nomination Committee of the Board

Nomination Committee of the Board constituted on 30.11.2007 and reconstituted from time to time as per the guidelines
and following are the present Directors:
1. Sri Mohammad Mustafa, (Chairman of the Committee) GOI Nominee Director (From 25.09.2012 to 31.03.2013)
2. Smt. Madhulika P. Sukul, (Chairperson of the Committee) Govt. of India Nominee Director (From 01.04.2012 to 24.09.2012)
3. Sri Pankaj Chaturvedi, Part-time Non-Official Director
4. Sri N. V.R. Reddy, Part-time Non-Official Director
103
3.10
3.11
\
, \ , , \, , ,
], ] , ] { -
/2010-11/494 .....6/31.02.2008/2010-11 \
.30.08.2012
2012-13 11.07.2012 28.03.2013
\ , , \
\

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(01.04.2012 31.03.2013)
2
2
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05.10.2012 31.03.2013
1
1
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()01.04.2012 31.08.2012
1
1

(30.08.2012 )
1
1
(.)
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2
2

, , ] ] \ . 05.12.2011 , .02.02.2012

. '' \ . ;
\ .

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42 :
05.04.2012
10.09.2012
27.12.2012
26.04.2012
14.09.2012
31.12.2012
14.05.2012
15.09.2012
07.01.2013
22.05.2012
18.09.2012
11.01.2013
13.06.2012
20.09.2012
19.01.2013
19.06.2012
08.10.2012
01.02.2013
29.06.2012
16.10.2012
14.02.2013
12.07.2012
20.10.2012
25.02.2013
17.07.2012
26.10.2012
04.03.2013
25.07.2012
09.11.2012
08.03.2013
07.08.2012
17.11.2012
14.03.2013
14.08.2012
27.11.2012
20.03.2013
23.08.2012
12.12.2012
26.03.2013
03.09.2012
20.12.2012
30.03.2013
104
3.10
3.11
Information Technology Strategy Committee

The IT Strategy Committee has been constituted in terms of guidelines issued by RBI letter no. RBI/201011/494DBS.CO.ITC.BC.NO. 6/31.02.2008/2010-11 for implementation of recommendations issued by Reserve Bank
of India in nine broad areas such as IT governance, Information Security, IS Audit, IT Operations, IT Services
Outsourcing, Cyber Fraud, Business Continuity Planning, Customer Awareness programmes and Legal aspects.
During the year the committee is re-constituted on 30.08.2012.
The committee met two times during the year 2012-13 i.e. on 11.07.2012 and on 28.03.2013.
The attendance of the members at the meetings of Information Technology Strategy Committee along with the number
of meetings held during the period of their tenure during the year is given below in the table:
No. of Meetings of Information Technology
Type of Director
Strategy Committee
Attended
Sri Nandlal L Sarda
Chairman of the Committee
(From 01.04.2012 to 31.03.2013)
2
2
Sri S.K. Kalra
Executive Director
From 05.10.2012 to 31.03.2013
1`
1
Sri A A Taj
Executive Director(Member)
From 01.04.2012 to 31.08.2012
1
1
Sri K. Raghuraman,
Director (w.e.f. 30.08.2012)
1
1
General Manager (IT)
(Chief Information Officer)
2
2
Credit Approval Committee
The Credit Approval Committee of the Board was constituted on 02.02.2012 in terms of Gazzette notification dated
05.12.2011 issued by the Department of Financial Services, Ministry of Finance, Government of India. The
Committee shall exercise powers of the Board with regard to credit proposals:
Upto Four Hundred Crore Rupees in case of the category A Banks having business of Three Lakhs Crore
Rupees or more; OR
Upto Two Hundred Fifty Crore Rupees in case of the other Nationalised Banks.
The credit proposals which exceed the power delegated to the officials of the Nationalised Banks including
powers delegated to the Chairman and Managing Director and the credit proposals being considered by the
Management Committee shall be considered by the Credit Approval Committee subject to the limit specified as
above and the credit proposals which exceed such limits be considered by the Management Committee.
The Committee met 42 times during the year 2012-13 on the following dates:
05.04.2012
10.09.2012
27.12.2012
26.04.2012
14.09.2012
31.12.2012
14.05.2012
15.09.2012
07.01.2013
22.05.2012
18.09.2012
11.01.2013
13.06.2012
20.09.2012
19.01.2013
19.06.2012
08.10.2012
01.02.2013
29.06.2012
16.10.2012
14.02.2013
12.07.2012
20.10.2012
25.02.2013
17.07.2012
26.10.2012
04.03.2013
25.07.2012
09.11.2012
08.03.2013
07.08.2012
17.11.2012
14.03.2013
14.08.2012
27.11.2012
20.03.2013
23.08.2012
12.12.2012
26.03.2013
03.09.2012
20.12.2012
30.03.2013
105
]

]

( )
01.04.2012 31.03.2013
42
42
,
( )
01.04.2012 31.03.2013
42
33

( )
05.10.2012 31.03.2013
23
20
]
( )
01.04.2012 31.08.2012
13
9
3.12
] , ]
.05.06.2012
06.11.2012
05.11.2012 28.03.2013 ] ]

]

( )
05.06.2012 31.03.2013
2
2

( )
06.11.2012 31.03.2013
1
1

( )
05.10.2012 31.03.2013
2
2
]
( )
05.06.2012 31.08.2012

25.09.2012 31.03.2013
2
1

05.06.2012 24.09.2012
]
05.06.2012 31.03.2013
2
2
,
05.06.2012 31.03.2013
2
2
106
The attendance of the members at the Credit Approval Committee meetings along with the number of meetings held
during the period of their tenure during the year is given below in the table:
No. of Meetings of Sub-Committee for
Credit Approval Committee
Type of Director
3.12
Attended
Sri B A Prabhakar
Chairman(Chairman & Managing Director)
From 01.04.2012 to 31.03.2013
42
42
Sri K K Misra
Member(Executive Director)
From 01.04.2012 to 31.03.2013
42
33
Sri S.K. Kalra

Member (Executive Director)
From 05.10.2012 to 31.03.2013
23
20
Sri A A Taj
From 01.04.2012 to 31.08.2012
13
Steering Committee of the Board on Human Resources Management

Board constituted the above committee on 05.06.2012 in terms of Govt. of India directions for implementation of
Khandelwal Committee recommendations for review of long term Manpower planning exercise, Training arrangements
for new competencies and Succession Planning and Leadership development. The Committee was reconstituted on
06.11.2012.
The Committee met two times during the year on 05.11.2012 and 28.03.2013.
The attendance of the members at the meetings of the Steering Committee of the Board on Human Resources
Management along with the number of meetings held during the period of their tenure during the year is given below in
the table:
No. of Meetings of Steering Committee of the
Board on Human Resources Management
Type of Director
Attended
Sri B A Prabhakar
w.e.f 05.06.2012 to 31.03.2013
Sri K K Misra
w.e.f 06.11.2012 to 31.03.2013
Sri S.K. Kalra

w.e.f 05.10.2012 to 31.03.2013
Sri A A Taj
w.e.f. 05.06.2012 to 31.08.2012

GOI Nominee Director
w.e.f. 25.09.2012 to 31.03.2013
Smt. Madhulika P. Sukul

w.e.f. 05.06.2012 to 24.09.2012

Director w.e.f. 05.06.2012 to 31.03.2013
Sri K. Raghuraman, Director

w.e.f. 05.06.2012 to 31.03.2013
107
3.13

.28.11.2012

2012-2013 22.12.2012 28.03.2013
]

]

( )
28.11.2012 31.03.2013
2
2

( )
28.11.2012 31.03.2013
2
2

( )
28.11.2012 31.03.2013
2
2

28.11.2012 31.03.2013
2
2
3.14 :
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108
3.13
Committee for Monitoring of Recovery in NPAs

Board constituted a Board Level Committee to Monitor the progress in recovery in NPAs on regular basis on
28.11.2012, in terms of Ministry of Finance directions.
The Committee met two times during the year 2012-13 on 22.12.2012 and 28.03.2013.
The attendance of the members at the Committee for Monitoring of Recovery in NPAs meetings along with the number
of meetings held during the period of their tenure during the year is given below in the table:
No. of Meetings of Committee for Monitoring of
Type of Director
Recovery in NPAs
Attended
Sri B A Prabhakar
w.e.f 28.11.2012 to 31.03.2013
2
2
Sri K K Misra
w.e.f 28.11.2012 to 31.03.2013
2
2
Sri S.K. Kalra
w.e.f 28.11.2012 to 31.03.2013
2
2
w.e.f. 28.11.2012 to 31.03.2013
2
2
3.14 Other Committees
There are other functional Committees consisting of Chairman & Managing Director, Executive Directors, General
Managers and Departmental Executives, which have been constituted for day to day functioning, review and
monitoring of various aspects of Business. Some of the important functional committees are as under.
1. Asset Liability Committee (ALCO)
2. Operational Risk Management Committee (ORMC)
3. Investment Committee (IC)
4. Risk based supervision Committee (RBSC)
5. Credit Risk Management Committee (CRMC)
6. Internal Capital Adequacy Assessment Committee (ICAAP)
The details of these Committees and their functions are mentioned in brief hereunder:
3.14.1 Asset Liability Committee (ALCO)
ALCO is a decision making body responsible for Balance Sheet Planning from Risk Returns perspective. ALCO is a
primary authority for monitoring liquidity and interest rate risks in the Balance Sheet of the Bank. The Committee
mainly reviews the risk mitigation measures adopted in the bank and to ensure the adequacy of such measures, ensure
adequate resources are assigned to mitigate risks, review and approve the development and implementation of
operational risk methodologies and tools including assessment, reporting, capital and loss event database, proactively
review and manage potential risks that may arise from regulatory changes/or changes in economic/political
environment, analyze frauds, potential losses, non compliance, breaches etc., and recommend corrective measures to
prevent recurrence of such events and promote risk awareness across all business units on a continuous basis.
Members of the Committee:
a. Chairman and Managing Director [Head of the Committee]
b. Executive Directors
c. Chief General Manager
d. General Manager (IRMD/CMRD)
e. General Manager (Corporate Planning)
f.
General Manager (Treasury, Mumbai)
Convener - AGM/CM/(IRMD)
The Committee met 36 times during the period to discuss and decide on various notes submitted by different
Departments of Head Office. Further, the Committee also deliberated and accorded approvals to offer preferential
rates of interest on Bulk Deposits on day to day basis.
109
3.14.2 \ ]
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3.14.3
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20.05.2012, 26.09.2012 28.12.2012
110
3.14.2 Operational Risk Management Committee (ORMC)

Operational Risk Management Committee shall be responsible for implementation of the Operational Risk policies
and limits approved by the Board / RMC. It shall have as its principal objective the mitigation of operational risk
within the institution by the creation and maintenance of an explicit operational risk management process.
d. General Manager (IRMD / CMRD)
e. General Manager (I & A)
f. General Manager (Operations)
g. General Manager (DIT)
h. General Manager & C V O
The main functions of the Committee are to review the risk mitigation measures adopted in the bank and to ensure the
adequacy of such measures, to ensure adequate resources are assigned to mitigate risks, to review and approve the
development and implementation of operational risk methodologies and tools including assessment, reporting, capital
and loss event database, to proactively review and manage potential risks that may arise from regulatory changes/or
changes in economic/political environment, to analyze frauds, potential losses, non compliance, breaches etc., and
recommend corrective measures to prevent recurrence of such events and to promote risk awareness across all
business units on a continuous basis.
The committee met five times during the year under review on the following dates:
28.04.2012, 20.09.2012, 26.09.2012, 19.12.2012 and 28.12.2012
3.14.3 Investment Committee (IC)
Investment Committee was constituted to approve investments, review investment transactions, fix prudential
exposure limits to various money market players and Investments in Non-SLR category etc.
d. General Manager (Corporate Planning)
e. General Manager (Credit)
f. General Manager (IIB)
g. General Manager (IRMD / CMRD)
The main functions of the Committee - reviewing the matters related to strategies to be adopted and provide guidance
in the areas of Funds & Investment, the investment transactions undertaken by the bank during the month and the
existing systems and procedures for suitable modifications etc. on an ongoing basis.
The committee shall approve/recommend Non-SLR Investments falling within the powers of EDs/CMD/MC
The committee meets on all working days except on Saturdays.
3.14.4 Risk Based Supervision Committee
The Risk Based Supervision Committee was constituted for the supervision of the measures on the implementation of
the Risk Based Supervision and risk based internal audit of the bank and reviews the risk profile of the bank on a
quarterly basis.
The Members of the Committee:
d. General Manager (IRMD / CMRD)
e. General Manager (I & A)
f. General Manager (Operations)
g. General Manager (DIT)
h. General Manager & C V O
The main functions of the committee are monitoring the progress in implementing the action points advised by Reserve
Bank of India on RBS, review reports on progress shall be placed before the Board at quarterly intervals like Risk
Profiles of the Bank updated on quarterly basis by IRMD, Risk Rating under RBIA and QPR on RBS and RBIA on
quarterly basis.
The committee met three times during the year on:
20.05.2012, 26.09.2012 and 28.12.2012
111
3.14.5 ] ()
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15.06.2012, 04.09.2012, 19.10.2012, 20.10.2012, 29.11.2012, 20.12.2012 11.03.2013
3.14.6 ]
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4.

4.1
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16.06.2010 10.00 ] , , ], , ,
-500 081
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22.06.2011 10.00 ] , , ], , ,
-500 081
]
05.07.2012 03.30 ] , , ], , ,
-500 081

]
112
3.14.5 Credit Risk Management Committee (CRMC)

CRMC is responsible for implementation of the Credit risk policies / strategies approved by RMC / the Board. The
Committee shall prepare the Credit Risk Policy of the bank, policies / standards for presentation of credit proposals,
financial covenants, rating standards and benchmarks and recommend to RMC / Board for approval. The Committee
shall also decide on the delegation of Credit approving powers, prudential limits on credit exposures, standards for loan
collaterals, portfolio management, loan review mechanism, risk concentrations, risk monitoring & evaluation, pricing of
loans, provisioning and regulatory / legal compliance etc.
d. General Manager (Credit)
e. General Manager (IRMD/CMRD)
f. General Manager (Priority Sector Policy)
g. General Manager (MSME)
h. General Manager (Retail Credit)
Convener: - Dy.GM / AGM / CM (IRMD)
The Committee met seven times during the year on 15.06.2012, 04.09.2012, 19.10.2012, 20.10.2012, 29.11.2012,
20.12.2012 and 11.03.2013.
3.14.6 Internal Capital Adequacy Assessment Committee
The Executive level Committee of ICAAP shall scrutinize the assessment made in the ICAAP document and suggest
modifications / changes, if any, to the document. The Committee shall then recommend the ICAAP document to be
placed before the Chairman & Managing Director and thereafter to the Board for approval.
c. General Manager (IRMD)
d. General Manager (Credit)
e. General Manager (Central Accounts)
f. General Manager (CMRD)
g. General Manager (Corporate Planning)
h. General Manager (Treasury, Mumbai)
i. General Manager (DIT)
j. General Manager (Personnel)
k. General Manager (Operations)
The committee met two times during the year on 14.08.2012 and 11.03.2013.
4. General Body Meetings
4.1 Annual General Meeting
The details of previous three Annual General Meetings (AGM) of shareholders are as follows:
General Body
Meeting
Date
Time
Venue
Tenth AGM
16.06.2010
10.00 AM
Shilpakala Vedika, Shilpa Ramam, Crafts Village, Near HiTech City,

Madhapur, Hyderabad 500 081
Eleventh AGM
22.06.2011
10.00 AM

Twelfth AGM
05.07.2012
03.30 PM

No Special Resolution was passed in the previous three Annual General Meetings stated above.
No Special Resolution was passed through postal ballot during the previous three years.
113
4.2

] .
23.03.2011
10.30 ]
, ,
7,45,80,364
],

, , - 500 081
5.1
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\
\ ^ 49(v)
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1.
375
2. ]
200
3. .
100
.
5.2 2012-13 *
( )

..

..
@
1593383

40463
-2011-12
172131

\
----2011-12
525956

(31.12.2011 )
@
1371786

6948
-2011-12
142760

@
656374

-2011-12
-
(05.10.2012 31.03.2013)
@
-----2011-12
275000

(30.09.2011 )
@ ]
600177

11580
--2011-12
550000

(31.08.2012 )
# ]
709972

-255000
-- \
]
559731

-230000
-- \
* , ,
@
#
114
4.2 Extraordinary General Meeting

The details of Extraordinary General Meeting of the shareholders held during the last 3 years are as follows:
Date
Time
23.03.2011
10.30 AM
Venue
Purpose
Shilpakala Vedika, Shilpa Ramam,

Crafts Village, Near HiTech City,
To issue and allot 7,45,80,364 equity shares

to Government of India on preferential basis
5.1. Material Disclosures

The Bank had complied with all the requirements regarding Capital Market related matters and no penalty has been
imposed by the Stock Exchanges or SEBI or any other Statutory Authority for non compliance of any law, guidelines and
directives during the last three years. The related party transactions of the Bank are disclosed in the Notes on Accounts,
Schedule of the Balance Sheet as on 31.03.2013 as per Accounting Standards-18 issued by the Institute of Chartered
Accountants of India, New Delhi.
The Directors and Senior Management personnel affirm by the Model Code of Conduct framed by the Bank and the same
is posted on the website.
The Certificate of CEO & CFO under Clause 49(v) of the Listing Agreement is attached to the Corporate Governance Report.
The number of Equity Shares of the Bank held by Non Executive Directors is furnished below:
1. Sri K Raghuraman
375 Equity Shares
2. Sri G R Sundaravadivel
200 Equity Shares
3. Prof. Nandlal L Sarda
100 Equity Shares
All other Non Executive Directors do not hold any equity shares of the Bank.
5.2 Details of remuneration* paid to the Directors for the Financial year 2012-13
(Amount in Rupees)
Director
Salary
@ Sri B A Prabhakar
1593383
Banks
Perquisites
Contribution to PF
Sitting Fees
Performance based
Incentive
Period FY
Amount
PENSION OPTEE
40463
--
2011-12
172131
--
--
--
--
2011-12
525956
@ Sri K K Misra
Executive Director
1371786
PENSION OPTEE
6948
--
2011-12
142760
@ Sri S.K. Kalra

Executive Director
(05.10.2012 to 31.03.2013)
656374
PENSION OPTEE
--
--
2011-12
--
@ Sri Anil Girotra

Executive Director
(Up to 30.09.2011)
--
--
--
--
2011-12
275000
@ Sri A.A. Taj

Executive Director
(Up to 31.08.2012)
600177
PENSION OPTEE
11580
--
2011-12
550000
#Sri N. Raja Gopal Reddy

709972
PENSION OPTEE
--
255000
--
Sri Manoranjan Das

559731
PENSION OPTEE
--
230000
--
Sri R Ramachandran
(Up to 31.12.2011)
* The remuneration includes Salary, benefits, perquisites etc.

@ Service contract as per Government Regulations
# As per Andhra Bank Officers Service Regulations
115
6. \
], ] \ , ]
, ] \ 2012-2013
, \ www.andhrabank.in
] ] , ] ]
, \\
]
\ , ]
]
{ , { , , , ,
], , ] , , ,
7. ]
\ ] ] 31.03.2013 1867 , 1207 23 \

] \ .
\]
532418
25 , ] ]]
/ ANDBKDM
, -400 001,
.
\] ,
/ ANDHRABANK
\] ],
, - 400 051.
31.03.2013
8.1
\ ]
() ] () ()
.
- INE 434A01013
- INE 434A01013
\ 31, 2013 1,94,949 35,906 1,59,043
55,95,80,364 32,45,80,364 23,50,00,000 ] 31 \ 2013 ]
( ) 96.97% 3.03%
8.2 ()
] ] ]

]
]
]
]
\
116
6. Means of Communication
Quarterly financial results are submitted to the Stock Exchanges where the shares of the Bank are listed within the stipulated
time frame.
The Bank strongly believes that all stakeholders should have access to the information on different activities, performance and
product initiatives. Quarterly, Half yearly and Annual Working Results of the Bank were published in the leading newspapers
for the year 2012-13. The results were also made available on the Banks website www.andhrabank.in. The Annual Report is
sent to all the shareholders of the Bank. Every year, after the Quarterly, Half yearly and Annual Working Results are declared, a
Press Meet is held on the same day in which the Chairman & Managing Director answers to the queries of the Media. The
Chairman & Managing Director, Executive Directors and other top functionaries during their visits to other centers in India as
well as abroad, undertake one to one meeting with the Fund Managers as well as Press personally and appraise them about
the performance of the Bank. The following news papers mainly cover the Financial Results and Notices:
English
Business Standard, Business Line, Financial Express, Indian Express, Mint, Economic Times
Telugu
Andhra Jyothi, Andhra Prabha, Prajashakti, Vaartha, Andhra Bhoomi, Vishaalandhra
Hindi
Milap
7. Shareholders Information
The Bank is a Scheduled Commercial Bank with the Head Office situated at Hyderabad. The Bank has its Pan India presence
through its 1867 branches, 1207 ATMs and 23 Zonal Offices as on 31.03.2013.
The Banks shares are listed on the following Stock Exchanges
a.
Bombay Stock Exchange Limited
Symbol: 532418
25th Floor, Phiroze Jeejeebhoy Towers
Stock Code/System: ANDBKDM
Dalal Street, Mumbai 400 001.
b.
The National Stock Exchange of India Ltd.,
Stock Code/ Symbol:ANDHRABANK
Exchange Plaza, Bandra Kurla Complex,
Bandra East, Mumbai 400 051.
The annual listing fee has been paid till 31.03.2013.
8.1 Dematerialisation of Securities
The shares of the bank are under compulsory demat list of SEBI and the Bank is a member of the Depository Services with
National Security Depository Ltd (NSDL) and Central Depository Services ( India ) Ltd (CDSL) as an issuer company for
dematerialisation of Banks shares. Shareholders can get their shares dematerialized with either NSDL or CDSL. The
Depository services have allotted the following ISIN numbers to the bank.
NSDL -- INE434A01013
CDSL -- INE434A01013
As on March 31, 2013, out of 1,94,949 shareholders of the Bank 35,906 shareholders hold the shares of the Bank under physical
mode and 1,59,043 shareholders hold the shares in demat form. Out of the total equity shares of 55,95,80,364 of the Bank,
32,45,80,364 equity shares are held by the Government of India and the remaining 23,50,00,000 are held by the public. As on 31st
March, 2013, the public shareholding (incl. Govt. of India) in Electronic Form is 96.97% and 3.03% is in physical form.
8.2 Electronic Clearing Services (ECS)
Electronic Clearing Services is a method by which payment of dividend etc. where the amount due to the investor can directly
be credited to his/her account. The bank has offered the services to the shareholders having account at the following Centres:
Agra
Jabalpur
Pune
Allahabad
Jamshedpur
Rajkot
Aurangabad
Jodhpur
Ranchi
Baroda
Kakinada
Solapur
Bhopal
Lucknow
Surat
Coimbatore/ Tirupur
Ludhiana
Thissur
Dhanbad
Madurai
Tiruchirapalli
Durgapur
Mangalore
Tirupathi
Erode
Mysore
Udaipur
Ernakulam
Nasik
Varanasi
Hubli
Nellore
Vijayawada
Indore
Pondicherry
Visakhapatnam
117
8.3 ()
(])
] ] ,
] ]
.
8.4
] 15
] ] ]
] ]
, ] ], ,
] ], ] ] ]

]
21/22 ,
5, .' , ( )
400 009
.022-23726253 56

\/\//
] ]
\

,
. ,
5-9-11, , 500004.
040 - 23230883, 040 - 23252371
mbd@andhrabank.co.in
8.5
, ], 25.03.2010
183 27,279
2012-13 , 334
21,954
]
9.
9.1
.
,
22 ], 2013 - 4.00 ] , , -500 004
9.2 ()

30 ] 2013
--] 2013
30 2013
-- 2013
31 2013
--] 2014
31 \ 2014
-- - 2014
9.3 ()
15.07.2013 19.07.2013 ( )
9.4
2012-13 29.07.2013
( 2012-13 02.05.2013 50% . 5.00 29.07.2013
])
118
8.3 Dividend payment by way of National Electronic Clearing Service (NECS)

The objective of the system is to facilitate centralized processing of payment of dividend. The NECS (credit) facilitate the
Issuer, multiple credits to beneficiary accounts which have been covered under Core-Banking Solution. For the purpose, the
shareholders have to update their bank account details by furnishing their CBS account number, MICR No., etc. to their
respective Depository Participants in case of dematerialized holdings and to the Registrars & Share Transfer Agents in case of
physical holdings. The NECS facilitates the shareholder to receive dividend in his account on the pay-out date itself.
8.4 Share Transfer System and Redressal of Investors Grievances
The Bank ensures that all transfers are duly affected within the period of 15 days from the date of their lodgment. The Board
has constituted a Share Transfer Committee for confirmation of the Transfers, which meets at regular intervals. The Registrars
& Share Transfer Agents undertake the process of transfers within the stipulated statutory period which is confirmed by the
Share Transfer Committee.
Share Transfers, Dividend Payments and all other investor related activities are attended to and processed at the Office of the
Registrars and Share Transfer Agents, M/s.MCS Limited, Mumbai. The Shareholders may lodge the transfer deeds and any
other documents, grievances and complaints at the following address of the Registrars and Share Transfer Agents:
M/s. MCS LIMITED
KASHIRAM JAMNADAS BLDG.,
OFFICE NO.21/22 GROUND FLOOR
5, P.D'MELLO ROAD, (GHADIYAL GODI)
MUMBAI - 400 009.
Ph. No. 022-23726253 to 56
Contact Person: Mr.Uday Mogaveera
The Bank also undertakes the investor services in Merchant Banking Division at Head Office of the Bank. Any communication /
correspondence /grievances/ complaints can be sent to the following address for redressal:
The Company Secretary
Investor Services Section
Andhra Bank
Dr.Pattabhi Bhavan, Head Office
5-9-11, Saifabad
Hyderabad 500 004.
Fax. 040-23230883; Tel:040-23252371
E-mail add: mbd@andhrabank.co.in;
8.5 Opening of an ESCROW Account
The Bank has opened an ESCROW Account with Andhra Bank Centralised DP Branch, Somajiguda, Hyderabad and
transferred on 25.03.2010 the unclaimed shares of the shareholders who have participated in our Follow-on Public Offer. The
Bank has transferred 27,279 unclaimed shares pertaining to 183 shareholders to the above Escrow Account.
During the year 2012-13, 334 equity shares were transferred from the ESCROW account to the shareholders Demat accounts
on their Claim for the Shares. The number of unclaimed shares outstanding in the account are 21,954 shares.
The voting rights on these unclaimed shares shall remain frozen till the rightful owner of such shares claims the shares.
9. Financial Calendar
9.1 Annual General Meeting of the shareholders:
Particulars of the Thirteenth Annual General Meeting of the shareholders of the Bank:
Date, Time & Venue of the AGM
Monday 22nd July, 2013 @ 4.00 p.m. Ravindra Bharathi, Saifabad, Hyderabad 500 004.
9.2 Financial Calendar (Tentative)
Approval of quarterly results for the period ending:
June 30, 2013
End of July, 2013
September 30, 2013
End of October, 2013
December 31, 2013
-- End of January, 2014
March 31, 2014
Audited Annual Accounts April, 2014
9.3 Date of Book Closure (Dividend)
Book Closure 15.07.2013 to 19.07.2013 (both days inclusive)
9.4 Dividend payment date
Dividend payment date for 2012-13: 29.07.2013
(Note: The Board of Directors of the Bank recommended Dividend on 02.05.2013 @ 50% being Rs 5.00 ps per share for the
financial year 2012-13, subject to shareholders approval, and the same will be paid on 29.07.2013.)
119
10.1

01
02
03
04
05
06
07
08
31.03.2013

%

1
324580364
58.00
]
191833
63990671
11.44
/
1378
1111410
0.20

1520
12711263
2.27
\
19
3424827
0.61
/ /
50
78311283
13.99

106
74393500
13.29
42
1057046
0.20
194949
559580364
100.0000
31 \ 2013 13.49 % (31 \ 2012 13.63) ] ] 20%

31.03.2012
31.03.2013
31.03.2012
31.03.2013
1.

128
106
7,52,35,705
7,43,93,500
2.
/
1373
1378
10,40,026
11,11,410
1501
1484
7,62,75,731
7,55,04,910
10.2 ]/ / ] .
31.03.2013 \
..

01

58.0042
324580364
02
] ( 32 ] )
9.8930
55359213
03
] .- -
5.7786
32335695
04
] () .
1.6787
9393428
05
\ ]
1.6767
9382345
11. 31.03.2013

%

%
5000
168813
86.59
28059052
5.01
5001 10000
17009
8.72
14154871
2.53
10001 20000
6012
3.08
8268023
1.48
20001 30000
1401
0.72
3432016
0.61
30001 40000
403
0.21
1432034
0.26
40001 50000
360
0.19
1687583
0.30
50001 100000
464
0.24
3347063
0.60
100001 99999999
486
0.25
174619358
31.21
100000000
1
0.00
324580364
58.00
194949
100.00
559580364
100.00
12. ]
]

1
324580364
58.0042

81633
31997632
5.7181
\
7
446
0.0001
498
109599
0.0196
^
2074
448111
0.0801
120
10.1 SHARE HOLDING PATTERN AS ON 31.03.2013

Sl.
Category
No.
01
Government of India
02
General Public
03
NRIs / OCBs
04
Private Corporate Bodies
05
Mutual Funds & UTI
06
Banks / Financial Institutions / Insurance Cos.
07
Foreign Institutional Investors
08
Others
TOTAL
No. of Share
Holders
1
191833
1378
1520
19
50
106
42
194949
No. of Shares
% to Shares
324580364
63990671
1111410
12711263
3424827
78311283
74393500
1057046
559580364
58.00
11.44
0.20
2.27
0.61
13.99
13.29
0.20
100.0000
The total shares held by the FIIs as on 31st March, 2013 was 13.49% (13.63 as on 31st March, 2012) as under, which is
within the stipulated level of 20% of the paid up capital of the bank:
Sl. No
Category
No. of shareholders
No. of shares
As on
As on
As on
As on
31.03.2012
31.03.2013
31.03.2012
31.03.2013
1.
Foreign Institutional Investors
128
106
7,52,35,705
7,43,93,500
2.
NRIs / OCBs
1373
1378
10,40,026
11,11,410
TOTAL 1501
14847,62,75,731
7,55,04,910
10.2 Bank has not issued any GDRs/ADRs/Warrants or any convertible instruments.
Top 5 shareholders of the Bank as on 31.03.2013
Sl.No
Name of the Investor
01
02
03
04
05
Government of India
Life Insurance Corporation of India (incl other 32 schemes)
Genesis Indian Investment Co. Ltd General Sub-fund
Sanlam Asset Management (Ireland) Limited A/c sanlam Universal
HDFC Standard Life Insurance Company Ltd
Percentage of
total holding
58.0042
9.8930
5.7786
1.6787
1.6767
Total number
of shares
324580364
55359213
32335695
9393428
9382345
11 DISTRIBUTION OF SHAREHOLDERS CATEGORY WISE AS ON 31.03.2013

Nominal Value of Equity shares
Upto 5000
5001 to 10000
10001 to 20000
20001 to 30000
30001 to 40000
40001 to 50000
50001 to 100000
100001 to 99999999
100000000 and above
TOTAL
No. of Shareholders
168813
17009
6012
1401
403
360
464
486
1
194949
%
86.59
8.72
3.08
0.72
0.21
0.19
0.24
0.25
0.00
100.00
No. of Shares
28059052
14154871
8268023
3432016
1432034
1687583
3347063
174619358
324580364
559580364
%
5.01
2.53
1.48
0.61
0.26
0.30
0.60
31.21
58.00
100.00
12 STATE-WISE SHAREHOLDING DISTRIBUTION

State
PRESIDENT OF INDIA
ANDHRA PRADESH
ARUNACHAL PRADESH
ASSAM
BIHAR & JHARKAND
No. of Holders
1
81633
7
498
2074
121
Total Holding
324580364
31997632
446
109599
448111
% of Share Holding
58.0042
5.7181
0.0001
0.0196
0.0801
\[
502
273649
8194
3842220
]
10086
2433343
2118
568943
\
146
36091
]
205
46565
12656
3519496
3625
879822

2940
792945
*
24938
168959878
28
4427
{
1
500
42
116696
4892
1454616
]
1160
389050
]
3232
789509
16064
4908373
70
14217

5910
1442685

8286
9166702
189308
556775879
5641
2804485

194949
559580364
(*) /
13.
0.0489
0.6866
0.4349
0.1017
0.0064
0.0083
0.6290
0.1572
0.1417
30.1940
0.0008
0.0001
0.0209
0.2599
0.0695
0.1411
0.8772
0.0025
0.2578
1.6381
99.4989
0.5011
100.0000
, ]
2012
2012
] 2012
] 2012
2012
2012
2012
2012
2012
] 2013
2013
\ 2013
\\
127.00
119.95
124.70
122.60
103.90
114.30
116.40
110.75
121.25
129.95
112.45
110.00
\]
111.00
8751008
100.50
16579368
103.30
16481626
98.10
10495242
87.60
11949739
89.70
18821990
100.65
16307994
99.70
21165397
110.45
18739254
107.15
34857444
90.00
20142311
90.00
17057754
122
\\
126.90
119.70
124.35
120.25
104.80
118.00
116.50
111.00
121.90
130.00
112.35
102.60
\],
111.45
868134
100.10
1676532
103.35
1786120
98.40
949455
89.70
1532217
90.00
1904882
100.65
1684728
99.50
2442543
112.00
2526318
107.50
4620202
90.10
2138748
91.00
2332320
CHANDIGARH
502
273649
0.0489
8194
3842220
0.6866
GUJARAT
10086
2433343
0.4349
HARYANA
2118
568943
0.1017
HIMACHAL PRADESH
146
36091
0.0064
JAMMU & KASHMIR
205
46565
0.0083
12656
3519496
0.6290
KERALA
3625
879822
0.1572
MADHYA PRADESH
2940
792945
0.1417
24938
168959878
30.1940
28
4427
0.0008
500
0.0001
42
116696
0.0209
ORISSA
4892
1454616
0.2599
PUNJAB
1160
389050
0.0695
RAJASTHAN
3232
789509
0.1411
TAMIL NADU
16064
4908373
0.8772
70
14217
0.0025
UTTAR PRADESH
5910
1442685
0.2578
WEST BENGAL
8286
9166702
1.6381
189308
556775879
99.4989
5641
2804485
0.5011
194949
559580364
100.0000
DELHI
KARNATAKA
MAHARASHTRA*
MEGHALAYA
MIZORAM
NAGALAND
TRIPURA
TOTAL:
OTHERS:
GRAND TOTAL:
(*) includes FII / NRI shareholders, having correspondent offices in Mumbai

13 SHARE PRICE, VOLUME OF SHARES TRADED IN STOCK EXCHANGES
Period
Date
National Stock Exchange
Stock Exchange, Mumbai
High
Low
Volume
High
Low
Volume
April 2012
127.00
111.00
8751008
126.90
111.45
868134
May 2012
119.95
100.50
16579368
119.70
100.10
1676532
June 2012
124.70
103.30
16481626
124.35
103.35
1786120
July 2012
122.60
98.10
10495242
120.25
98.40
949455
August 2012
103.90
87.60
11949739
104.80
89.70
1532217
September 2012
114.30
89.70
18821990
118.00
90.00
1904882
October 2012
116.40
100.65
16307994
116.50
100.65
1684728
November 2012
110.75
99.70
21165397
111.00
99.50
2442543
December 2012
121.25
110.45
18739254
121.90
112.00
2526318
January 2013
129.95
107.15
34857444
130.00
107.50
4620202
February 2013
112.45
90.00
20142311
112.35
90.10
2138748
March 2013
110.00
90.00
17057754
102.60
91.00
2332320
123
\ (
) \ -
31 \ 2013 \], .94.65 \] .94.50

14.
2010-11
10/150.65
26.05
5.50
106.12
24.29%
2011-12
10/119.15
24.03
5.50
126.38
22.89%
2012-13
10/94.65
23.04
5.00
146.13
21.70%
(.)
31 \ ] - (.)
(.)
(.)
(.)
- ( %)
15. \
'-' ' 50 ' \ /
.
16.

, ] ( ] ) 1980 ( ) 2003
] , ] .
] 09.03.2007
.
]
\ ] ]
01.11.2007 ]

, ] , ]
] - ]
124
Performance of Banks share price on NSE and BSE in comparison with the movement of Bank NIFTY (as on the
last day of every month) is shown here below:
The Banks share price as on 31st March, 2013 closed at Rs.94.65 p on the National Stock Exchange, Mumbai and at
Rs.94.50 p on the Bombay Stock Exchange Limited.
14 Per Share Data
2010-11
2011-12
2012-13
10/-
10/-
10/-
150.65
119.15
94.65
Earnings (Rs.)
26.05
24.03
23.04
Dividend (Rs.)
5.50
5.50
5.00
106.12
126.38
146.13
24.29%
22.89%
21.70%
Face Value (Rs.)

Market Quotation as on
31st March NSE (Rs.)
Book Value (Rs.)

Dividend payout (% of Net Profit)
15. Liquidity
Andhra Bank scrip belongs to Group A in BSE and NIFTY Midcap-50 in NSE. The fair volume of trading provides enough
entry/exit opportunities to the shareholders.
16. Non-Mandatory Requirements
The Bank has an Executive Chairman appointed by the Government. Hence, maintaining of an Office of a Non Executive
Chairman does not arise. The tenure of the Independent Directors is determined by the Government, excepting the tenure of
the Shareholder Directors which is determined in accordance with the provisions of the Banking Companies (Acquisition &
Transfer of Undertaking) Act, 1980 read with the Andhra Bank (Shares and Meetings) General Regulations, 2003.
The remuneration of the Executive Directors is determined in terms of the Government guidelines. There is a Remuneration
Committee constituted in terms of Government directive dated 09.03.2007.
The Bank has not sent half yearly declaration of financial performance to the shareholders.
The Independent Directors are appointed by the Central Government except the Directors elected from amongst the
Shareholders other than Central Government. Nomination Committee was constituted in terms of the directives of Reserve
Bank of India dated 01.11.2007.
The Bank has a Whistle Blower Policy.
Some of the Independent Directors were sent for training on IT Governance conducted by IDRBT, Hyderabad and
training for Non-official Directors of Commercial Banks conducted by CAFRAL, Mumbai during the year.
125

( \] \ ^ 49(v) )

, ,
] () 31 \, 2013 - ]
(i)
] ]

(ii)
\ \ ,

() ] , - \

() - ]
]\ , \
] , , ] , \
\
() - - \ (I)
(ii)
(iii)
, ] ,
\ ,
/-
/-
( \)
()

( )

02.05.2013
126
CERTIFICATE
(Pursuant to Clause 49(V) of the Listing Agreement with the Stock Exchanges)
The Board of Directors

ANDHRA BANK
Head Office, Hyderabad.
This is to certify that..

(a)
The financial statements and the cash flow statement for the year ended 31st March, 2013 have been reviewed and
that to the best of our knowledge and belief;
(i)
these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(ii) these statements together present a true and fair view of the banks affairs and are in compliance with the existing
accounting standards, applicable laws and regulations;
(b)
There are, to the best of our knowledge and belief, no transactions entered into by the bank during the year which are
fraudulent, illegal or violative of the banks code of conduct.
(c)
We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have
disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if
any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the auditors and the Audit Committee

(i)
significant changes in internal control over Financial reporting during the year;
(ii) significant changes in accounting policies during the year and that the same have been disclosed in the notes to
the financial statements;
AND
(iii) instances of significant fraud of which we have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the Banks internal control system over financial
reporting.
sd/-
sd/-
(TVS Chandrasekhar)
General Manager (Accounts)
& Chief Financial Officer
Place :
(B.A. Prabhakar)
Hyderabad
Date : 02.05.2013
127

31 \ 2013 ] \] \ 49
, ] , ]\ .
] ]\ ,
- .
]
\ , ] ,
.
.

]

- 002413

-004453
(. )
^ (..018883)
(..)
^ (..211639)

-004137

-310100
( )
^ (.. 205869)
(] )
^ (..019423)

-108959

-312063
( )
^ (..45239)
( )
^ (..050531)

02.05.2013
128
CERTIFICATE
The Members of Andhra Bank
We have examined the compliance of conditions of Corporate Governance by Andhra Bank, for the year ended 31st March,
2013, as stipulated in Clause 49 of the Listing Agreement of the said Bank with Stock Exchanges i.e., Bombay Stock Exchange
Limited and the National Stock Exchange of India Limited as far as applicable to the Nationalised Banks.
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited
to procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the conditions of the Corporate
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Bank.
In our opinion and to the best of our information and according to the explanations given to us, subject to what is stated above:
We certify that the Bank has complied with the conditions of Corporate Governance as stipulated in the above-mentioned
Listing Agreement, to the extent applicable to the Nationalised Banks.
We state that no investor grievance is pending for a period exceeding one month, against the Bank as per the record,
maintained by the Bank
We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or
effectiveness with which the management has conducted the affairs of the Bank.
For Nataraja Iyer & Co.

Chartered Accountants
FRN - 002413S
For Umamaheswara Rao & Co

FRN-004453S
(U.Yagneswara Sarma)
Partner (M.No.018883)
(R R Dakshinamurthy)
For R Subramanian and Company

FRN-004137S
For Patro & Co.

FRN-310100E
(R Prakash)
(Rajendra Patro)
For C R Sagdeo & Co.

FRN-108959W
For NAG & Associates

FRN-312063E
(Suman Bose)
(Indranath Nag)
PLACE : HYDERABAD
DATE : 02.05.2013
129
31 \, 2013 BALANCE SHEET AS ON 31ST MARCH, 2013

(` ] ) (` in '000)
Particulars
31.03.2013 31.03.2012
Schedule No.
AS ON 31.03.2013 AS ON 31.03.2012
SOURCE OF FUNDS
] CAPITAL
1
559,58,04
559,58,04
RESERVES & SURPLUS
2
7881,60,30
6919,81,03
] DEPOSITS
3
123795,58,09
105851,21,81
BORROWINGS
4
11119,33,89
8240,55,72
OTHER LIABILITIES & PROVISIONS
5
2942,84,10
2974,22,09
TOTAL
146298,94,42
124545,38,69
] APPLICATION OF FUNDS

CASH AND BALANCES WITH RBI
6
6022,13,60
5563,88,70
\
BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
7
767,45,86
3081,70,07
INVESTMENTS
8
37632,39,68
29628,90,41
ADVANCES
9
98373,30,10
83222,97,74
\ FIXED ASSETS
10
303,48,14
302,55,31
OTHER ASSETS
11
3200,17,04
2745,36,46
TOTAL
146298,94,42
124545,38,69
] CONTINGENT LIABILITIES
12
28276,90,08
40781,19,69
BILLS FOR COLLECTION
4328,67,19
3659,29,30
SIGNIFICANT ACCOUNTING POLICIES
17
NOTES ON ACCOUNTS
18
\ The Schedules referred to above form an integral part of Balance Sheet.
. .
. .
. .

. .
] \
]
. . . . ] ]. .
.
.
... \
.
.

]

- 002413

-004453
(. )
^ (..018883)

-310100
(] )
^ (..019423)

02.05.2013
(. . )
^ (..211639)

-108959
( )
^ (..045239)
130

-004137
(.)
^ (.. 205869)

-312063
( )
^ (..050531)
31 \, 2013
PROFITANDLOSSACCOUNTFORTHEYEARENDED31STMARCH,2013
(` ] ) (` in '000)
Particulars
Schedule No.
31.03.2013
31.03.2012
Year Ended 31.03.2013 Year Ended 31.03.2012
INCOME
\ ] INTEREST EARNED
13
12909,69,21
11338,72,83
OTHER INCOME
14
1047,42,37
859,92,96
TOTAL INCOME
13957,11,58
12198,65,79
EXPENDITURE
\ ] INTEREST EXPENDED
15
9152,67,42
7579,40,68
\ OPERATING EXPENSES
16
2037,20,88
1804,24,92
PROVISIONS AND CONTINGENCIES
1478,09,96
1470,33,04
TOTAL EXPENDITURE
12667,98,26
10853,98,64
NET PROFIT FOR THE YEAR
1289,13,32
1344,67,15
PROFIT BROUGHT FORWARD
99,06,59
292,70,93
TOTAL
1388,19,91
1637,38,08
] APPROPRIATIONS
Transfer to Statutory Reserve
322,28,33
336,16,79
] Transfer to Capital Reserve
11,38,00
4,45,00
] Transfer to Revenue & Other Reserves
319,19,53
675,00,00
310,00,00
165,00,00
Proposed Dividend
279,79,02
307,76,92
Tax on Dividend
47,55,03
49,92,78
] Balance carried over to Balance Sheet
98,00,00
99,06,59
TOTAL
1388,19,91
1637,38,08
( ) EARNINGS PER SHARE(BASIC AND DILUTED)`
23.04
24.03
\ The Schedules referred to above form an integral part of Profit & Loss Account
B.A.PRABHAKAR
K.K.MISRA
S.K.KALRA
Executive Director
Executive Director
K.R.ANANDA
Directors
PANKAJ CHATURVEDI
MANORANJAN DAS
N.RAJA GOPAL REDDY

G.R. SUNDARAVADIVEL
N.V.R.REDDY
NANDLAL L.SARDA
K.RAGHURAMAN
T.V.S. CHANDRASHEKAR
GENERAL MANAGER
Y.AMARNATH
V. SATYANARAYANA
DEPUTY GENERAL CHIEF MANAGER
MANAGER
As per our report of even date.

FOR NATARAJA IYER & CO
CHARTERED ACCOUNTANTS
FRN:002413S
FOR UMAMAHESWARA RAO & CO

FRN:004453S
FOR R SUBRAMANIAN AND COMPANY

FRN:004137S
(U.YAGNESWARA SARMA)
PARTNER (M.NO. 018883)
(R.R.DAKSHINAMURTHY)
(R.PRAKASH)
FOR PATRO & CO

FRN:310100E
FOR C R SAGDEO & CO

FRN:108959W
FOR NAG & ASSOCIATES

FRN:312063E
(RAJENDRA PATRO)
(SUMAN BOSE)
PARTNER (M.NO.045239)
(INDRANATH NAG)
Place : Hyderabad
Date : 02.05.2013
131
- \ SCHEDULES FORMING PART OF BALANCE SHEET

(` ] ) (` in '000)
Particulars
\ SCHEDULE 1 : : ] CAPITAL
I. ] AUTHORISED CAPITAL
10/- 300,00,00,000 300,00,00,000 Equity Shares of `10/- each
II. ], ,
ISSUED,SUBSCRIBED, CALLED UP AND PAID UP
10/- 55,95,80,364
55,95,80,364 Equity Shares of ` 10/- each
( 32,45,80,364 )
(Including 32,45,80,364 Equity Shares held by Central Government)
\ - 1 TOTAL SCHEDULE- 1
\ SCHEDULE- 2 :: RESERVES AND SURPLUS
I. STATUTORY RESERVE
Opening Balance
] Addition during the Year
Total-I
II.] CAPITAL RESERVE
Opening Balance
Total-II
III. SHARE PREMIUM
Opening Balance
Total-III
IV. ] REVENUE RESERVE
Opening Balance
- ] Less : Adjustments
Total-IV
V. 36 (1) (viii)
SPECIAL RESERVE U/s 36 (1) (viii) of IT Act
Opening Balance
- Less : Deductions
Total-V
VI.
BALANCE IN PROFIT & LOSS ACCOUNT
\
TOTAL SCHEDULE- 2
132
31.03.2013
31.03.2012
AS ON 31.03.2013
AS ON 31.03.2012
3000,00,00
3000,00,00
559,58,04
559,58,04
559,58,04
559,58,04
2026,16,79
322,28,33
2348,45,12
1690,00,00
336,16,79
2026,16,79
348,00,71
11,38,00
359,38,71
343,55,71
4,45,00
348,00,71
1778,41,96
1778,41,96
1778,41,96
1778,41,96
2203,14,98
319,19,53
2522,34,51
1528,14,98
675,00,00
2203,14,98
465,00,00
310,00,00
775,00,00
300,00,00
165,00,00
465,00,00
98,00,00
99,06,59
7881,60,30
6919,81,03
\ SCHEDULES FORMING PART OF BALANCE SHEET

(` ] ) (` in '000)
Particulars
\ SCHEDULE- 3 :: ] DEPOSITS
I-. ] I-A. DEMAND DEPOSITS
i) From Banks
ii) From Others
Total
I-. \ ] I-B. SAVING BANK DEPOSITS
i) From Banks
ii) From Others
Total
I-. ] I-C. TERM DEPOSITS
i) From Banks
ii) From Others
Total
-I TOTAL-I
II-. ] II-A. DEPOSITS OF BRANCHES IN INDIA
II-. ]
II-B. DEPOSITS OF BRANCHES OUTSIDE INDIA
TOTAL-II.
\ TOTAL SCHEDULE- 3
\ SCHEDULE - 4 :: BORROWINGS
I. I. BORROWINGS IN INDIA
i) { From Reserve Bank of India
ii) From Other Banks
iii) ] Other Institutions and Agencies
iv) SUBORDINATED DEBTS
) 7.25% 111 a) 7.25% 111 Months Bonds
) 9.15% 124 b) 9.15% 124 Months Bonds
) 11.00% 120 c) 11.00% 120 Months Bonds
) 8.55% 120 d) 8.55% 120 Months Bonds
) e) Innovative Perpetual Debt Bonds
\) \\ II f) Upper Tier II Bonds
] I SUB- TOTAL I ( i, ii, iii,iv )
II. BORROWINGS OUTSIDE INDIA
\ TOTAL SCHEDULE- 4
133
31.03.2013
31.03.2012
AS ON 31.03.2013
AS ON 31.03.2012
37,91,06
6990,71,58
7028,62,64
41,84,92
6327,15,40
6369,00,32
24730,25,86
24730,25,86
21578,29,23
21578,29,23
43,76,35
91992,93,24
92036,69,59
123795,58,09
123795,58,09
47,39,01
77856,53,25
77903,92,26
105851,21,81
105851,21,81
123795,58,09
123795,58,09
105851,21,81
105851,21,81
3341,15,00
1837,65,59
2814,16,97
200,00,00
700,00,00
600,00,00
320,00,00
200,00,00
1000,00,00
8198,80,59
2920,53,30
11119,33,89
200,00,00
700,00,00
600,00,00
320,00,00
200,00,00
1000,00,00
5834,16,97
2406,38,75
8240,55,72

(` ] ) (` in '000)
Particulars
\ SCHEDULE - 5::
OTHER LIABILITIES AND PROVISIONS
I. Bills Payable
II. ] () Inter Office Adjustments (Net)
III.\ ] Interest Accrued
IV.
Contingent Provisions Against Standard Assets
V. Deferred Tax Liability
VI. ( ) Others (Including Provisions)
\ TOTAL SCHEDULE- 5
\ SCHEDULE - 6:: {
CASH AND BALANCES WITH RESERVE BANK OF INDIA
I. ( ) Cash In Hand (Including Foreign Currency Notes)
II. { Balance with Reserve Bank of India
i) \ In Current Accounts
ii) In Other Accounts
\ TOTAL SCHEDULE-6
\ SCHEDULE-7 :: \
BALANCES WITH BANKS & MONEY AT CALL & SHORT NOTICE
I. IN INDIA
I) Balances with Banks
) \ a) In Current Accounts
) b)In Other Accounts
Total
ii) \ Money at Call and Short Notice
) a)With Banks
) b) With Other Institutions
Total
Total- I
II OUTSIDE INDIA
I) \ In Current Accounts
ii) ] In Other Deposit Accounts
iii) \ Money at Call and Short Notice
Total- II
\ TOTAL SCHEDULE- 7
134
31.03.2013
31.03.2012
AS ON 31.03.2013
AS ON 31.03.2012
647,21,83
116,73,20
673,63,35
498,45,79
583,50,00
54,24,00
1541,15,07
2942,84,10
406,50,00
90,45,00
1305,17,95
2974,22,09
634,06,67
469,87,59
5388,06,93
5094,01,11
6022,13,60
5563,88,70
129,08,16
50,00,00
179,08,16
319,79,72
1682,60,64
2002,40,36
179,08,16
779,19,46
779,19,46
2781,59,82
383,72,75
204,64,95
588,37,70
767,45,86
151,89,77
148,20,48
300,10,25
3081,70,07

(` ] ) (` in '000)
Particulars
31.03.2013
31.03.2012
AS ON 31.03.2013
AS ON 31.03.2012
32973,61,70
26727,91,59
8,16,45
10,36,44
326,42,59
212,84,66
1338,80,13
705,96,94
173,50,48
190,00,82
2678,11,66
1772,51,33
37498,63,01
29619,61,78
i) Government Securities
ii) Other Approved Securities
iii) Shares
\ SCHEDULE - 8 :: INVESTMENTS
I I. INVESTMENTS IN INDIA
iii) Shares
iv) \ Debentures and Bonds
v) / Subsidiaries and/or Joint Ventures
vi) Others
Total - I
II INVESTMENTS OUTSIDE INDIA
v) / Subsidiaries and/or Joint Ventures
133,76,67
9,28,63
133,76,67
9,28,63
] Grand Total (I & II)
37632,39,68
29628,90,41
Gross Investments
37795,48,00
29655,76,75
: Less : Depreciation
163,08,32
26,86,34
\ TOTAL SCHEDULE- 8
37632,39,68
29628,90,41
vi) Others
Total - II
135

(` ] ) (` in '000)
Particulars
\ SCHEDULE - 9 :: ADVANCES
I- I-A.Bills Purchased and Discounted
I-. ,
I-B.Cash Credits,Overdrafts and Loans Repayble on Demand
I-. I-C.Term Loans
Total - I
II-. (- )
II-A.Secured By Tangible Assets (Includes Advances against Book Debts)
II-. /
II-B.Covered by Bank/Government Guarantees
II-. II-C.Unsecured Advances
Total - II
III-. III-A. ADVANCES IN INDIA
i) Priority Sector
ii) ] Public Sector
iii) Banks
iv) Others
Total - III-A
III-. III-B. ADVANCES OUTSIDE INDIA
Total-III
\ TOTAL SCHEDULE- 9
\ SCHEDULE - 10 :: \ FIXED ASSETS
. A. TANGIBLE ASSETS
I. PREMISES
Opening Balance at Cost
] Addition during the year
Deduction during the year
Depreciation to date
WDV at the end of the Year
II. \ OTHER FIXED ASSETS
III. ] \ CAPITAL WORK IN PROGRESS
Value at the end of the Year
. B. INTANGIBLE ASSETS
I. COMPUTER SOFTWARE
] Opening Balance at Cost
/ Depreciation/Amortization to date
\ TOTAL SCHEDULE- 10
136
31.03.2013
31.03.2012
AS ON 31.03.2013
AS ON 31.03.2012
2089,14,89
1596,20,41
50523,70,79
45760,44,42
98373,30,10
42958,40,51
38668,36,82
83222,97,74
86735,93,73
69431,36,65
4997,01,03
6640,35,34
98373,30,10
3431,52,83
10360,08,26
83222,97,74
34621,93,81
7618,96,91
56132,39,38
98373,30,10
98373,30,10
98373,30,10
27659,47,75
7509,91,24
48053,58,75
83222,97,74
83222,97,74
83222,97,74
110,60,56
1,19,03
33,99,90
77,79,69
85,96,34
24,64,22
30,51,35
80,09,21
795,83,46
72,40,30
13,95,09
644,67,61
209,61,06
742,50,54
70,27,33
16,94,41
604,26,51
191,56,95
2,56,01
11,41,00
9,83,15
4,13,86
21,67,19
15,89,39
35,00,57
2,56,01
114,21,12
8,91,59
99
111,18,19
11,93,53
303,48,14
111,27,49
2,93,63
85,87,98
28,33,14
302,55,31

(` ] ) (` in '000)
31.03.2013 31.03.2012
Particulars
AS ON 31.03.2013
AS ON 31.03.2012
61,87,66
93,48,23
971,71,82
723,00,85
1484,97,99
1097,60,00
7,65,32
6,55,81
673,94,25
824,71,57
3200,17,04
2745,36,46
233,39,16
329,57,95
32,72,14
126,58,00
752,18,25
977,08,25
8339,33,67
19309,60,96
10318,30,99
10378,58,12
VII. ,
Acceptances, Endorsements & Other Obligations
5578,42,67
6242,51,67
VIII. \ Letter of Comfort
2358,57,26
2827,31,50
656,65,00
573,56,00
7,30,94
16,37,24
28276,90,08
40781,19,69
\ SCHEDULE - 11 :: OTHER ASSETS

I. ] () Inter Office Adjustments (Net)
II. \ ] Interest Accrued
III. / ( )
Tax Paid in Advance/Tax Deducted at Source (Net of Provision)
IV. Stationery and Stamps
V. () Deferred Tax Asset (Net)
VI. Others
\ SCHEDULE - 12 :: CONTINGENT LIABILITIES
I. ] ]
Claims against Bank not acknowledged as debts
II. /
Liability for partly paid Shares/Investments
III. ] Capital Commitments
IV. Options & Derivatives
V. Outstanding Forward Exchange Contracts
VI.
Guarantees given on behalf of Constituents
). a) In India
). b) Outside India
IX. ]- Interest Rate Swaps

X. Disputed Tax Liability
XI. ]
Other Items for which Bank is Contingently Liable
137
- \ SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT

(` ] ) (` in '000)
Particulars
31.03.2013
31.03.2012

\ SCHEDULE - 13 :: ] ] INTEREST EARNED
I. / ]/ Interest/Discount on Advances/ Bills
10327,05,13
9278,24,21
2475,75,07
1973,52,81
III. ] -
Interest on balances with RBI & Other Inter Bank Funds
89,24,39
75,13,71
IV. Others
17,64,62
11,82,10
12909,69,21
11338,72,83
I., ] Commission, Exchange and Brokerage
272,88,50
264,01,31
II. Profit on Sale of Investments
188,92,69
120,91,16
III. Profit/(Loss) on Redemption of Investments
(10,04,67)
31
47,87
1,04,07
102,69,06
61,28,76
5,87,06
5,92,04
VII. Miscellaneous Income
486,61,86
406,75,31
1047,42,37
859,92,96
II. Income on Investments
\ SCHEDULE - 14 :: OTHER INCOME
IV. ,
Profit on Sale of Land, Buildings and Other Assets
V. Profit on Exchange Transactions
VI. //
Income by way of Dividend etc.from Subsidiaries/Companies/Joint Ventures in India
138
- \ SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT

(` ] ) (` in '000)
Particulars
31.03.2013
31.03.2012

\ SCHEDULE - 15 :: ] INTEREST EXPENDED
I. ] ] Interest on Deposits
8549,81,29
6946,04,84
II. / ] Interest on RBI/Inter Bank Borrowings
323,64,73
354,14,32
III. Others
279,21,40
279,21,52
9152,67,42
7579,40,68
1286,98,24
1149,93,25
II. , ] Rent, Taxes and Lighting
145,55,03
122,46,07
III. Printing and Stationery
19,84,05
17,03,36
IV. \ Advertisement and Publicity
15,70,81
7,51,87
V. Depreciation on Bank's Property
83,62,41
93,89,82
80,33
70,61
VII. ( )
Auditors' Fees and Expenses (Including Branch Auditors)
14,98,24
14,83,46
VIII. Law Charges
11,42,92
14,46,79
IX. , Postages, Telegrams and Telephones etc.
31,22,51
28,70,39
X. - Repairs and Maintenance
85,08,78
71,16,37
XI. Insurance
97,79,05
85,14,14
244,18,51
198,38,79
2037,20,88
1804,24,92
\ SCHEDULE - 16 :: \ OPERATING EXPENSES
I. \ Payments to and Provisions for Employees
VI. , Directors' Fees, Allowances and Expenses
XII. Other Expenditure

139
iii)
iv) \
v) /
vi)
)
i) (\)
ii) ()
iii) (\)

.
.
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, ] , ,
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.

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\ ] .
\ - 17 2012-13
1.
, ,
\

( ) ] /
\
.
2. ] \
\ ) ] ]
] ] .
) ], , , ]
] .
) \
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) ,

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3.
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4.
.
.
i)
ii)
140
SCHEDULE 17 SIGNIFICANT ACCOUNTING

POLICIES FOR THE YEAR 2012-13
iii. Shares
1. GENERAL:
The financial statements are prepared on historical cost
convention and on accrual basis of accounting , unless
otherwise stated, by following going concern assumption
and conform to the statutory provisions, regulatory
guidelines, Accounting Standards, Guidance Notes
issued by Institute of Chartered Accountants of India (
ICAI) and practices prevailing in the banking industry in
India.
2. REVENUE RECOGNITION:
Income and Expenditure are accounted on accrual basis,
except the following;
a. Interest on non-performing advances and non performing
investments is recognized as per norms laid down by
b. Interest on overdue bills, commission, exchange,
brokerage and rent on lockers are accounted on
realization.
c. Dividend is accounted when the right to receive the same
is established.
d. In case of suit filed accounts, related legal and other
expenses incurred are charged to Profit and Loss
Account and on recovery the same are accounted as
income.
3. FOREIGN EXCHANGE TRANSACTIONS:
a. Income and Expenditure items are recorded at the
exchange rates prevailing on the date of transaction.
b. Monetary Assets and Liabilities are revalued at the
Exchange rate notified by FEDAI at the close of the year
and the resultant gain/loss is recognized in the Profit and
Loss Account.
Forward exchange contracts are initially recorded at
exchange rate prevailing at the time of booking of the
contract. These are translated at the year end rates
notified by FEDAI and the resultant gain/loss is taken to
revenue.
c. Foreign Letters of Credit/Letters of Comfort and Letters of
Guarantee are recorded at the rates prevailing on the
date of entering into such commitment. Outstanding
items are restated at the rates notified by FEDAI as at the
close of the financial year.
d. Derivative contracts undertaken on back-to-back basis or
for hedging Banks own foreign currency exposure are
recorded at the rate prevailing on the date of the contract
and are reported at the closing rates at the Balance Sheet
date. The revenue in respect of these transactions is
recognized for the proportionate period till expiry of the
contract. In respect of contracts done on back to back
basis, the revenue on early termination of the contract is
recognized on termination.
4. INVESTMENTS:
a. Investments are classified and shown in Balance
Sheet under the following six heads:
i. Government Securities
ii. Other Approved Securities
v.
iv. Debentures and Bonds

Subsidiaries / Joint Ventures and
vi. Others.
b. Investments are further classified into the following
three categories:
i.
Held to Maturity (HTM)
ii.
Available for Sale (AFS)
iii. Held for Trading (HFT)

Held to Maturity category comprises of securities
acquired with the intention to hold them up to maturity.
"Held for Trading" category comprises of securities
acquired with the intention of trading. "Available for Sale"
securities are those which are not covered under either of
the above two categories. Investments in
Subsidiaries/Joint ventures/Associates are classified as
Held to Maturity.
c. Valuation:
The Investments are valued in accordance with Reserve
Bank of India guidelines on the following basis:i)
Held to Maturity:
a. Investments classified under this category are stated at

acquisition cost net of amortization. The excess of
acquisition cost over the face value, if any, is amortized
over the remaining period of maturity.
b. Any diminution, other than temporary in nature, in the
value of investments is determined and provided for each
investment individually.
ii) Available for Sale:
a. Investments classified under this category are marked to
market on quarterly basis and valued as per Reserve
Bank of India guidelines at the market rates available on
the last day of each quarter (Balance Sheet date) from
trades/quotes on the Stock Exchanges, prices/yields
declared by the Fixed Income Money Market and
Derivatives Association of India (FIMMDA). Unquoted
securities are also valued as per the Reserve Bank of
India guidelines.
b. The net depreciation under each head is fully provided for
whereas the net appreciation, if any, is ignored. The book
value of the individual securities does not undergo any
change after marking to market.
iii) Held for Trading:
a. Investments classified under this category are valued at
market price based on market quotations, prices/yields
declared by FIMMDA at the end of every month.
b. The net depreciation under each head is fully provided for
whereas the net appreciation, if any, is ignored. The book
value of the individual securities does not undergo any
change after marking to market.
d. Prudential Norms:
The identification of non performing investments and
provisions made thereon is as per Reserve Bank of India
guidelines.
141
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142
e. Profit / Loss on Sale of Investments:

I. Profit or loss on sale of investments is recognized on the
value dates on the basis of weighted average cost.
Premium on redemption of Debentures/ Bonds is
recognized on the date of redemption.
ii. Profit on sale of investments held in Available for Sale
and Held for Trading categories is recognized in the
Profit and Loss Account.
iii. Profit on sale of investments in Held to Maturity category
is first taken to the Profit and Loss Account and an
equivalent amount of profit is appropriated to the Capital
Reserve (net of taxes and amount required to be
transferred to Statutory Reserve).
iv. Loss on sale of investments in all the three categories is
recognized in Profit and Loss Account.
f. General
i. Purchase and sale transactions in Government
Securities are recorded on the date of settlement.
ii. a) Transfer of scrips from AFS/HFT category to HTM
category: Transfer is made at the lower of book value or
market value. In cases where the market value is higher
than the book value at the time of transfer, the
appreciation is ignored and the security is transferred at
book value. In cases where the market value is less than
the book value, the provision against depreciation held
against this security (including the additional provision, if
any, required based on valuation done on the date of
transfer) is adjusted to reduce the book value to the
market value and the security is transferred at the market
value.
b) In case of transfer of securities from HTM to AFS/HFT
category:
If the security originally placed under HTM category;
- is at a discount, it is transferred to AFS/HFT category at
the acquisition price/ book value.
-is at a premium, it is transferred to AFS/HFT category at
the amortized cost.
After transfer in both the above cases, these securities
are immediately re-valued and resultant depreciation, if
any, is provided.
c) In case of transfer of securities from AFS to HFT category
or vice-versa, the securities are not re-valued on the date
of transfer and depreciation already held if any, is
transferred to the provision for depreciation against the
HFT securities and vice-versa.
iii. Upfront fee / Incentives on subscription of securities in
HTM / AFS / HFT categories are reduced from the cost of
securities and such incentives received after sale of
securities is credited to Profit and Loss account.
iv. Brokerage, Commission, Security Transaction tax and
Stamp Duty paid in connection with the acquisition of
securities are treated as revenue expenditure.
5. a. INTEREST RATE SWAPS: (Hedging)
i.Income on continuing swap transactions is recognized on
accrual basis except the swap designated with an asset or
liability that is carried at lower of cost or market value in the
financial statements. In that case, the swap is marked to
market with the resulting gain or loss recorded as an

adjustment to the market value or designated asset or liability.
ii Gains/ losses on terminated swap transactions are
recognized when the offsetting gain or
loss is
recognized on the designated asset or liability. Thus, the
gain or loss on the terminated swap is deferred and
recognized over the shorter of the remaining contractual
life of the swap or the remaining life of the designated
asset/liability.
b.INTEREST RATE SWAPS : (Trading)
i. Trading swaps are marked to market with changes
recorded in the Profit and Loss Account;
ii. Income and Expenses relating to these swaps are
recognized on the settlement date;
iii. Fee is recognized as income or expense as the case may
be;
iv. Gains or losses on the termination of the swaps are
recorded immediately as income or expenses on such
termination.
6. ADVANCES
a) Advances are classified in accordance with the Prudential
Norms issued by Reserve Bank of India.
i. Advances are classified into Standard, Sub-standard,
Doubtful and Loss assets borrower-wise.
ii. Provisions are made for non performing assets in
accordance with the RBI Guidelines, and additional
provisions as assessed
iii. General provision is made for standard assets.
b) Advances stated in the Balance Sheet are net of
provisions made for Non Performing Assets
c) Partial recoveries in Non Performing Assets are
apportioned first towards charges and interest, thereafter
towards principal with the exception of non performing
advances involving compromise settlements in which
case the recoveries are first adjusted towards principal.
7. FIXED ASSETS
a) Premises and other Fixed Assets are stated at historical
cost net of depreciation.
b) DEPRECIATION
i. Depreciation on Premises and on other Fixed Assets
except Computers and ATMs is provided on written down
value method at the rates specified in Schedule XIV of the
Companies Act 1956.
ii. The depreciation on Computers and other Peripherals is
provided @ 33.33 % on straight line method.
iii. Depreciation on ATMs is provided on straight line method
based on the estimated useful life of seven years.
c) AMORTIZATION
i. Premium wherever is paid for acquisition of leasehold
land for a period less than 60 years such premium along
with cost of the buildings constructed thereon is
amortized over the period of lease.
ii. The cost of Software is treated as intangible asset and the
same is amortized over its estimated useful life of five
years
143
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36(i)(viii) .

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144
8. EMPLOYEES BENEFITS
a) Short Term Benefits
Short-term compensated absences are recognized as an
expense on an undiscounted basis in the Profit & Loss
Account of the year in which the related service is rendered.
b) Long Term Benefits:
Long Term Benefits such as Leave Encashment, Sick
Leave, LFC/LTC availment/encashment, Ex-gratia to
retirees and Relocation expenses on exit are recognized
on the basis of actuarial valuation made as at the end of
the year.
c) Post Employment Benefits
i) Defined Contribution Plans: Defined Contribution Plans
such as Provident / Pension fund are recognized as an
expense and charged to the Profit &Loss Account.
ii) Defined Benefit Plans
(a) Gratuity:
The employees Gratuity Fund Scheme is funded by the
Bank and managed by a separate trust who in turn
manage their funds through approved schemes of Life
Insurance Companies. The present value of the Banks
obligations under Gratuity is recognized on the basis of
an actuarial valuation as at the year end and the fair
value of the Plan assets is reduced from the gross
obligations to recognize the obligation on a net basis.
(b) Pension:
The employees Pension Fund is funded by the Bank and
is managed by a separate trust. The present value of the
Banks obligations under Pension is recognized on the
basis of an actuarial valuation as at the year end and the
fair value of the Plan assets is reduced from the gross
(c) Amortization
The additional liability/expenditure arising consequent
upon the reopening of Pension Option to the employees
of the bank and enhancement in gratuity limit pursuant to
amendment to Payment of Gratuity Act, 1972 is being
amortized equally over a period of five years beginning
with the financial year 2010-11.
9. PROVISION FOR TAXATION:
a) Provision for tax is made for both Current and Deferred
Taxes.
b) Deferred tax assets and liabilities arising on account of
timing differences and which are capable of reversal in
subsequent periods are recognized using the tax rates
and laws that have been enacted or substantively
enacted as of the balance sheet date.
c) Deferred tax assets are not recognized unless there is
virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets will
be realized.
d) Special Reserve:
Revenue and other Reserves include Special Reserve
created under Section 36 (i) (viii) of the Income Tax Act,
1961.The Board of Directors of the Bank has passed a
resolution approving creation of the reserve and
confirming that there is no intention to make withdrawal
from the Special Reserve.
10. IMPAIRMENT OF ASSETS

An assessment is made at each balance sheet date
whether there is any indication that an asset is impaired. If
any such indication exists, an estimate of the recoverable
amount is made and impairment loss, if any, is provided
for.
11 .Provisions, Contingent Liabilities and Contingent
Assets
11.1. In conformity with AS.29 Provisions, Contingent
Liabilities and contingent Assets issued by the Institute of
Chartered Accountants of India, the Bank recognizes
provisions only when :
a) it has a present obligation as a result of a past event.
b) it is probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation, and
c) when a reliable estimate of the amount of the
obligation can be made.
11.2. No provision is recognized for :
i. any possible obligation that arises from past events and
the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Bank; or
ii. any present obligation that arises from past events but
is not recognized because
a) It is not probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation or
b) A reliable estimate of the amount of obligation cannot be
made.
Such obligations are recorded as Contingent Liabilities .
These are assessed at regular intervals and only that Part
of the obligation for which an outflow of resources
embodying economic benefits is probable, is provided for,
except in the extremely rare circumstances where no
reliable estimate can be made.
11.3. Contingent Assets are not recognized in the financial
statements.
12. NET PROFIT
The Net Profit disclosed in the Profit and Loss Account is
after:(a) Provision for depreciation on Investments.
(b) Provision for Taxation.
(c) Provision on loan losses
(d) Provision on Standard Assets.
(e) Provision for non-performing investments
(f) Other usual and necessary provisions.
145
*
] ] ` 1.60 (8.26 .)

**
) ` 1 (`1) 162 (162) ( )
) ` 1 (` 1) 8 (8)
) `133.77 (` 9.29 )
.10/- 7750000 (585025)
() \

\

1.2.1
(` )
\ 18 -
1. { (..) ]
:
1.1. ]
(` )
31 \, 2013
-I -II
i. (%)
11.26
11.76
ii. -- I
8.16
8.52
] (%)
iii. - II
3.10
3.24
] (%)
iv.

58.00
v. -II
]

vi.

vii.
II
31 \, 2012
-I -II
12.34
13.18
8.45
9.03
3.89
4.15
58.00

I)
ii)

I)
ii)
1.2
(1)
(i)
(a)
(ii)
(a)
(iii)
(a)
(2)
i)
ii)
iii)
iv)

,

(]
)
,

-\[

]

/

31 \ 2013 31 \ 2012
*37661.71 *29646.48
**133.77
**9.29
163.08
0.00
26.86
0.00
*37498.63 *29619.61
**133.77
**9.29
26.86
136.22
5.88
20.98
0.00
163.08
0.00
26.86
146

31\ 2013
100.00 2500.00
(200.00) (900.00)
0.00
0.00
(0.00) (0.00)
0.00 1000.00
(0.00) (3000.00)
0.00
0.00
(0.00) (0.00)
212.05 2500.00
(59.56) (0.00)
0.00
0.00
(0.00) (0.00)
21.92
(58.88)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
Schedule 18 - Notes on Accounts

1.
In terms of the Guidelines issued by the Reserve Bank of

India (RBI), the following disclosures are made:
1.1. Capital
** Includes the following

(` in crore)
Particulars
i) CRAR (%)
ii) CRAR - Tier I
capital (%)
iii) CRAR - Tier II
Capital (%)
iv) Percentage of the
shareholding of the
Government of India
v) Amount of subordinated debt raised
as Tier II capital
during the year
vi) Amount raised by
issue of IPDI during
the year
vii) Amount raised by
issue of Upper Tier II
Instruments during
the year
Investment includes ` 1.60 cr (` 8.26 cr) invested in a

Regional Rural Bank as Share Capital Deposit pursuant
to a letter by Government of India.
31st March-2013
31st March- 2012
BASEL I BASEL-II BASEL I BASEL-II
11.26
11.76
12.34
13.18
8.16
8.52
8.45
9.03
3.10
3.24
3.89
b) Investments in 8 (8) shares of SWIFT valued at ` 1 (` 1)

c) Investment in 7750000 (585025) shares of Malaysian
Ringgit 10/- each amounting to ` 133.77 crore(` 9.29
crore) in India International Bank (Malaysia) BHD.
4.15
58.00
58.00
NIL
NIL
NIL
NIL
NIL
NIL
a) Investments in 162 (162) shares (Class B) of Master card

Inc valued at ` 1(` 1)
Shares of Master Card Inc are allotted in kind, free of cost, as

an incentive in view of the past business relation.
Shares of SWIFT include shares allotted in initial
membership and shares accrued on re-allocation. The
reallocation of share is based on bank's utilization of SWIFT's
network based financial services.
1.2.1 Repo Transactions
(` in crore)
Particulars
1.2 Investment
Particulars
1) Value of Investments
i)
Gross Value of Investments
In India
Outside India
ii)
Provision for Depreciation
(including provision for
Non-Performing investments)
In India
Outside India
iii) Net Value of Investments
In India
Outside India
(2) Movement of provisions held
towards depreciation on
investments.
i) Opening balance
ii) Add: Provision made
during the year
iii) Less: Write-off/(write-back) of
excess provisions during the year
iv) Closing balance
(` in crore)
31st March
2013
31st March
2012
*37661.71
**133.77
*29646.48
**9.29
163.08
0.00
26.86
0.00
*37498.63
**133.77
*29619.61
**9.29
26.86
136.22
5.88
20.98
0.00
163.08
0.00
26.86
Minimum Maximum
Daily
Outstanding
outstanding outstanding Average as on 31st
during the during the outstanding March 2013
year
year
during the
year
Securities sold
under Repo
(i) Government
Securities
100.00
(200.00)
2500.00
(900.00)
212.05
(59.56)
2500.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
(i) Government
Securities
0.00
(0.00)
1000.00
(3000.00)
21.92
(58.88)
0.00
(0.00)
(ii) Corporate Debt

Securities
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
(ii) Corporate Debt

Securities
Securities purchased
under Reverse Repo
147
1.2.2.
i) \ (2012-13)
( )
()
125.52
(41.07)
2191.43
(341.83)
851.70
(1184.72)
1305.05
(1143.02)
312.27
(204.29)
4785.97
(2914.93)
135.35
(24.31)
24.50
(11.97)
1419.85
(331.78)
361.53
(995.03)
1158.02
(1057.29)
312.27
(204.29)
3276.17
(2600.36)
-
4650.62
(2890.62)
3276.17
(2600.36)
175.49
(65.10)
71.95
(65.10)
103.82
(65.10)
(1)
(3) - \-8
-
\
/
ii) ]
175.49
(65.10)
71.95
(65.10)
103.82
(65.10)
175.49
(65.10)
71.95
(65.10)
103.82
(65.10)
\ /
() , ' '()/
(\) ` 41.38 (` 1545.94 )
/]
/ /] (\)
`0.80 (24.05
) ]
(\) ] ] `7.25
(` 25.73 ) ' '()
] ` 0.14 (`1.59 )
]
( )

31-03-2013 31-03-2012
326.43
212.85
1338.80
705.97
307.27
199.29
2678.12
1772.51
4650.62
2890.62
( )
2012-13
2011-12
0.43
0.43
33.46
--
--
--
33.89
0.43
8.79
0.43
() \ ` 24.94 (
` 8.79 ) ] ] ]
( ]
) ` 10.64 (` 4.45 ) ]

148
1.2.2. Non S.L.R. Investment Portfolio

i) Issuer composition of Non SLR Investments (2012-13)
(` in crore)
S.No.
(1)
Issuer (2)
PSUs
Fis
Banks
Private Corporates
Subsidiaries/ Joint Ventures
Amount (3)
Extent of
'unrated'
securities
(6)
Extent of
'unlisted'
securities
(7)
24.50
(11.97)
2191.43
(341.83)
1419.85
(331.78)
851.70
(1184.72)
361.53
(995.03)
1305.05
(1143.02)
1158.02
(1057.29)
175.49
(65.10)
71.95
(65.10)
103.82
(65.10)
312.27
(204.29)
312.27
(204.29)
4785.97
(2914.93)
3276.17
(2600.36)
175.49
(65.10)
71.95
(65.10)
103.82
(65.10)
135.35
(24.31)
4650.62
(2890.62)
3276.17
(2600.36)
175.49
(65.10)
71.95
(65.10)
103.82
(65.10)
Less: Provision
held towards
depreciation
Balance
Extent of 'below
Investment Grade
Securities'
(5)
125.52
(41.07)
Other
Total
Extent of
Private
Placement
(4)
SALE AND TRANSFERS TO/FROM HTM CATEGORY

Total under col (3) includes the following categories of
investments specified in Schedule 8 to the Balance
Sheet
a)
Government securities aggregating ` 41.38 crores

(`1545.94 crores) from 'Available for Sale' (AFS)
(` in crore)
Particulars
category/Held for Trading (HFT) category to Held to
Net Value
31-03-2013
Shares
Debentures & Bonds
Subsidiaries/Joint Ventures
During the year, the Bank has shifted Central/State
Maturity (HTM) Category at lower of acquisition
31-03-2012
326.43
212.85
1338.80
705.97
cost/book value / market value and booked a shifting

loss of ` 0.80 crores (` 24.05 Crores) to Profit and Loss
Account. Bank also shifted investment of ` 7.25 crores
307.27
199.29
Others
2678.12
1772.51
Maturity (HTM) category to Available for Sale (AFS)
Total
4650.62
2890.62
category and provided a depreciation of ` 0.14 Crore
(` 25.73 crores) in Venture Capital funds from Held to
ii) Non Performing Non SLR Investments
(`1.59 Crore).
(` in crores)
Particulars
Opening Balance
Closing Balance
Total provisions held
(b)
The Bank has earned gross amount of ` 24.94 crores
2011-12
(` 8.79 crores) as profit on sale of securities in HTM
0.43
0.43
category out of which an amount of `10.64 crores
33.46
(`4.45 crores), net of tax and amount required to be
transferred to Statutory Reserve, has been
33.89
0.43
2012-13
8.79
appropriated to Capital Reserve Account as per

guidelines issued by Reserve Bank of India.
0.43
149
1.3
1.3.1 /]
( )

]
\
1.3.2 ] :
iii)
2012-13 2011-12
( )
.
(I)
2012-13 2011-12
]
(-)
31 \ 2013 ]

" " (-)

]

(iv) " " (-)

]
]
(ii)
(iii)
1.3.3 ]
) :
) ] \
i) ] () ()
] ]
, ] ,
], , ,
, ,
. 1500 ( .
500 ) [\
\
ii)
, ] ,
], , ,
] ]
,
]

] \-/
150

\
]

]

] ]
]
] , ] ]

, , , ]
]
]
]
\ ]
\ / \ /
]

] ] \
] ,
/ , ]
] ]
] ] ,
] ] , ]
,
\ \ , ,
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]
]
] / ]
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] \ ]
]
] ]
]
] ]
]
] ]
/ ]
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] \ , , ,
]
hedging / pricing their forward exposures on back to

back basis, or for hedging foreign currency exposures.
1.3
Derivatives
1.3.1 Forward Rate Agreement / Interest Rate Swaps
(` in crore)
Particulars
2012-13 2011-12
The notional principal of swap agreements
Nil
Nil
Losses which would be incurred if counter parties
failed to fulfill their obligations under the agreements Nil
Nil
Collateral required by the bank upon entering into
swaps
Nil
Nil
Concentration of credit risk arising from the swaps
Nil
Nil
The fair value of the swap book
Nil
Nil
iii) Derivative contracts undertaken on back-to-back basis

or for hedging own foreign currency exposure are
and are reported at the closing rates at the Balance
Sheet date. The revenue in respect of these transactions
is recognized for the proportionate period till the expiry of
the contract. In respect of contracts done on back to
back basis, the revenue on early termination of the
contract is recognized on termination.
b) Scope and nature of risk measurement, risk reporting
and risk monitoring systems:
1.3.2 Exchange Traded Interest Rate Derivatives:
S.No.
i)
(ii)
(iii)
(iv)
Particulars
Notional principal amount of exchange
traded interest rate derivatives undertaken
during the year (instrument-wise)
traded interest rate derivatives outstanding
as on 31st March 2013 (instrument-wise)
(` in crore)
Amount
2012-13 2011-12
Nil
The position of all outstanding swaps, new swaps

entered, swaps exited, mark to market value of swaps
etc., is being reviewed by the bank's investment
committee and Board at monthly intervals. Details of
transactions undertaken in IRS are also reported to
Reserve Bank of India on a fortnightly basis.
Nil
c)
Nil
Nil

traded interest rate derivatives outstanding
and not "highly effective" (instrument-wise)
Nil
Nil
Mark-to-market value of exchange traded

interest rate derivatives outstanding and not
"highly effective" (instrument-wise)
Nil
Nil
Depending on the market opportunities a view on

interest rate movement is taken and acted upon. Though
the settlement of swaps takes place on due date/dates
as per the terms of the swaps, the value monitoring is
carried out daily to know the impact of market changes
on Swap Book. When unfavorable market movements
are unidirectional, swaps are exited cutting loss. Cut loss
limits, exit powers, reviewing authority etc., are
prescribed.
1.3.3 Disclosures on risk exposure in derivatives

A) Qualitative Disclosures:
d) Accounting policy for recording the hedge and nonhedge transactions, recognition of income, premiums
and discounts, valuation of outstanding contracts,
provisioning, collateral and credit risk mitigation:
a) Structure and Organization for Management of risk in

derivatives trading:
i)
ii)
Policies for hedging and / or mitigating and strategies

and processes for monitoring the continuing
effectiveness of hedges / mitigants:
In terms of Reserve Bank of India guidelines on Interest

Rate Swaps (IRS) and Forward Rate Agreements (FRA)
the Bank has approved policies and procedures, counter
party exposure limits, delegation of powers, accounting
policy, policy for valuation, ISDA documentation, cut
loss, reporting etc., for Interest Rate Swaps and fixed a
cap of `1500 crores for interest rate swaps (sub-limit of
` 500 crores for Trading Book).Bank has conducted the
derivative operations within the overall framework of
these guidelines.
Detailed accounting policy and valuation policy are

approved by Board. Transactions for hedging purposes
are accounted for on accrual basis except the swap
designated with an asset / liability that is carried at lower
of cost or market value. In that case, the swap is marked
to market, with the resultant gain or loss recorded as an
adjustment to the market value of designated asset or
liability. On termination of swap, gain or loss is
recognized when the offsetting gain or loss is recognized
on the designated asset or liability. Any gain or loss on
the terminated swap was deferred and recognized over
the shorter of the remaining contractual life of the swap
or the remaining life of the asset / liability.
The Bank has approved policies and procedures,

counter party exposure limits, delegation of powers,
accounting policy, ISDA documentation, reporting etc.,
for undertaking forex derivatives in various forms of
currency swaps & various types of interest rates swaps
not specifically prohibited by Reserve Bank of India with
the corporate borrower customers, other banks and nonborrower customers to be covered on back to back
basis. Bank's policy also permits entering into Plain
Vanilla European Style Option to Bank's customers for
Trading transactions have to be marked to market with

charges recorded in the income statement. Income,
expenditure, fee, gains or losses on termination of
swaps are all recorded as immediate income or
expenses.
151
)

i
ii
iii
iv

31.03.2013
31.03.2012
752.18
977.08
752.18
977.08
0.00
0.00
( )
) \
)
]
) \
. (+)
. (-)
)
. (+)
. (-)
]
] (100*01)
. \
.
100* 01
) \
)
142.19
142.19
0.00
0.00
0.00
0.00
161.00
0.00
0.00
0.00
0.00
0.00
0.00
114.71
114.71
0.00
0.00
0.00
0.00
203.07
0.00
0.00
0.00
0.00
0.00
0.00
( )
]
31.03.2013
31.03.2012
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
] \ ` 142.19 (` 114.71 )

1.4.1.]
( )
2012-13
2011-12
(i) (%)
2.45%
0.91%
(ii) \[ ()
()
1798.01
995.64
()
2741.67
1287.31
() ]
825.19
484.94
()
3714.49
1798.01
(iii) \[
()
755.85
273.68
() ()
1653.33
482.17
() ]
0.00
0.00
()
2409.18
755.85
(iv) \[ ( )
()
1042.16
719.09
()
615.12
497.91
() ]
351.97
174.84
()
1305.31
1042.16
152
B) Quantitative Disclosure
Particulars
S.No.
(` in crore)
Currency Derivatives
31.03.2013
NIL
31.03.2012
977.08
a) For Hedging
752.18
977.08
NIL
NIL
0.00
0.00
NIL
NIL
NIL
Hedging
142.19
114.71
NIL
NIL
a)
Asset (+)
142.19
114.71
NIL
NIL
b)
Liability (-)
Marked to Market Positions
0.00
0.00
NIL
NIL
Trading
0.00
0.00
NIL
NIL
a)
Asset (+)
0.00
0.00
NIL
NIL
b)
Liability (-)
0.00
0.00
NIL
NIL
161.00
203.07
NIL
NIL
(100*PV01)
0.00
0.00
NIL
NIL
a)
On hedging derivatives
0.00
0.00
NIL
NIL
b)
On trading derivatives
0.00
0.00
NIL
NIL
Maximum and Minimum of 100*PV01 observed during the year
0.00
0.00
NIL
NIL
a)
On hedging
0.00
0.00
NIL
NIL
b)
On trading
0.00
0.00
NIL
NIL
B.
iv
31.03.2013
752.18
A.
iii
31.03.2012
Derivatives (Notional principal Amount)

b) For Trading
ii
Interest rate Derivatives
Credit Exposure
Likely Impact of one percentage change in Interest rate
Bank is having Mark to Market Position of ` 142.19 crores (` 114.71 crores ) for a derivative deal entered for hedging its foreign
currency exposure.Net mark to market effect for this transaction is NIL for the bank.
1.4.1 Non-Performing Assets
(` in crores)
Particulars
(i) Net NPA to Net Advances (%)
2012-13
2011-12
2.45%
0.91%
(ii) Movement of NPAs (Gross)

(a) Opening Balance
1798.01
995.64
(b) Additions during the year
2741.67
1287.31
825.19
484.94
3714.49
1798.01
755.85
273.68
1653.33
482.17
0.00
0.00
2409.18
755.85
1042.16
719.09
(b) Provisions made during the year
615.12
497.91
(c) Write off/write back of excess provisions
351.97
174.84
1305.31
1042.16
(d) Closing Balance

(iii) Movement of Net NPAs
(a) Opening Balance
(b) Additions during the year (Net)
(d) Closing Balance
(iv) Movement of provisions for NPAs
(excluding provisions on standard assets)
(a) Opening Balance
(d) Closing Balance
153
1.4.2 \
\

1 \
(
)*
- 31.03.2012
+
\

]

\\
/
]

\

(` )
19
858
1719.32
28.73
326.98
0
0
0
0
0
0
0 1719.32 568.58 6.74

0 28.73 7.11
0
0 326.98 5.60 0.15
0
0
0
0 575.32 3576.33 25.25

0 7.11 49.55
0
0 5.75 28.75 1.53
0
0
0
0 3601.58 5864.23 31.99

0
0 5896.22
0 49.55 85.39 0.00 0.00 0.00
85.39
0 30.28 361.33 1.68
0
0 363.01
17
60
87
0 399.63 2827.69
0 2827.69 4058.71
77.26
0
119.41
0
0
0
0 841.41 399.63
19.23
90.99
110.22
0
0
0
0
0
0
0
0
0
0
0
0
0
0 10.23
0 5.02 42.15
0
0 15.25
7.73
7.73
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.18
0.15
0.33
0
0
0
0
0
0
0
0
0
941
28.67
28.67 42.67
0.79
0.79
1.17
0.79
0.79
87
958
164
0 10.02
60
857
831.39
83
18
82
19

0
4
0
0 233.97
0

0 6.43
0
0
0
0
+
0 6.43
0

0
0
0
\
0
0
0

32
0
1
\ 31
2414.33
0 10.02
(
60.51
0
0
31.03.2013)
357.62
0
0

\
960
165
0 10.02
0 4068.73
0
0 77.26 106.72
0 42.15 138.16
0
0
0 119.41 244.88
0
0
0
0
0
0
0
0
0
106.72
138.16
244.88
30.37
30.37
38.10
38.10
0.18
0.15
0.33
0.68
0
0.68
0
0
0
0
0
0
0
0
0
0.68
0
0.68
0.86
0.15
1.01
0
0
0
0
0
0
0
0
0
0.86
0.15
1.01
941
4832
4832
5774
5774
0 42.67 229.15
0 229.15 300.49
300.49
1.17
6.30
6.30
8.26
8.26
0.57
0.57
4.77
4.77
5.34
5.34
1.74
1.74
11.07
11.07
13.60
13.60
0 413
413
0 1570
1570
0 1987
1987
0 233.97
0 66.88
0 66.88
0 145.49
0 145.49
0446.34
446.34
0
0
6.43
0
0 1.84
0 0.12
0
0
0
0
1.84
0.12
0 8.18
0 0.75
0
0
0
0
8.18
0.75
0 16.45
0 0.87
0
0
0
0
16.45
0.87
6.43
0 1.96
1.96
0 8.93
8.93
0 17.32
17.32
33
105
105
1010
1010
1147
1148
0 2424.35 1006.73
0 1006.73 6261.48
0 6261.48 9682.54
0 10.02
0 9692.56
0 60.51 27.21
0 357.62 8.67
0
0
0
0
0 27.21 170.00
0 8.67 77.40
0
0
0
0
0 170.00 257.60
0 77.40 443.69
0
0
0
0
19.23 10.23
90.99 5.02
110.22 15.25
154
0
0
257.60
443.69
1.4.2 Particulars of Accounts Restructured

Type of
Restructuring
Asset Classification
Stan
dard
No. of
borrowers
19
Amount
outstanding 1719.32
Provision
28.73
Sacrifice
326.98
No. of
borrowers
17
Amount
Fresh
restructuring outstanding 831.39
during the
Provision
year
there on
19.23
SACRIFICE 90.99
PROV+SAC 110.22
No. of
Upgradations borrowers
0
to
Amount
restructured
outstanding
0
standard
Provision
category
0
during the FY there on
SACRIFICE
0
PROV+SAC
0
Restructured
No. of
standard
borrowers
1
advances which
cease to attract
higher
provisioning and/
or additional risk
weight at the end
of the FY and
hence need not
be shown as
restructured
standard
advances at the
beginning of the
next FY
Downgradatio
ns of
restructured
accounts
during the FY
Write-offs
of restructured
accounts
during the FY
Restructured
Accounts as
on March 31
of the FY
(closing figures)
31-3-2013
Amount
outstanding
Provision
there on
SACRIFICES
Under SME Debt

Restructuring Mechanism
Sub- Doub Loss Total

Stan tful
dard
Details
Restructured
Accounts as
on April 1 of
theFY.(opening
figures)* - as
on 31.03.2012
` in crore
Under CDR Mechanism
Others
Stan Sub- Doub Loss Total

dard Stan tful
dard
19
83
Sub- Doub Loss

Stan tful
dard
Stan
dard
858
Sub- Doub Loss

Stan tful
dard
0
0
0
0
0
0
0 1719.32 568.58 6.74

0 28.73 7.11
0
0 326.98 5.60 0.15
0
0
0
0 575.32 3576.33 25.25

0 7.11 49.55
0
0 5.75 28.75 1.53
0
0
0
0 3601.58 5864.23 31.99

0
0 5896.22
0 49.55 85.39 0.00 0.00 0.00
85.39
0 30.28 361.33 1.68
0
0 363.01
87
0 10.02
0 841.41 399.63
0 399.63 2827.69
0 2827.69 4058.71
0 10.02
0 4068.73
0
0
0
0
0
0
0 19.23 10.23
0 90.99 5.02
0 110.22 15.25
0
0
0
0
0
0
0 10.23
0 5.02
0 15.25
77.26
42.15
119.41
0
0
0
0
0
0
0 77.26 106.72
0 42.15 138.16
0 119.41 244.88
0
0
0
0
0
0
0
0
0
106.72
138.16
244.88
7.73
7.73
30.37
30.37
38.10
38.10
0
0
0
0
0
0
0
0
0
0
0
0
0.18
0.15
0.33
0
0
0
0
0
0
0
0
0
0.18
0.15
0.33
0.68
0
0.68
0
0
0
0
0
0
0
0
0
0.68
0
0.68
0.86
0.15
1.01
0
0
0
0
0
0
0
0
0
0.86
0.15
1.01
941
941
4832
4832
5774
5774
28.67
28.67 42.67
0 42.67 229.15
0 229.15 300.49
300.49
0.79
0.79
1.17
1.17
6.30
6.30
8.26
8.26
0.57
0.57
4.77
4.77
5.34
5.34
0.79
1.74
1.74
11.07
11.07
13.60
13.60
0 413
413
0 1570
1570
0 1987
1987
0 233.97
0 66.88
0 66.88
0 145.49
0 145.49
0 446.34
446.34
0
0
6.43
0
0 1.84
0 0.12
0
0
0
0
1.84
0.12
0 8.18
0 0.75
0
0
0
0
8.18
0.75
0 16.45
0 0.87
0
0
0
0
16.45
0.87
6.43
0 1.96
1.96
0 8.93
8.93
0 17.32
17.32
33
105
105
1010
1010
1147
1148
0 2424.35 1006.73
0 1006.73 6261.48
0 6261.48 9682.54
0 10.02
0 9692.56
0 27.21 170.00
0 170.00 257.60
257.60
443.69
0 357.62
8.67
155
8.67
77.40
77.40 443.69
960
SACRIFICE 357.62
60.51 27.21
164
60
PROVIS+
SACRIFICES
0.79
0
0
No. of
borrowers
0
4
0
Amount
outstanding
0 233.97
0
Provision
there on
0 6.43
0
SACRIFICE
0
0
0
PROV+
SACRIFICE
0 6.43
0
No. of
borrowers
0
0
0
Amount
outstanding
0
0
0
No. of
borrowers
32
0
1
Amount
outstanding 2414.33
0 10.02
Provision
there on
60.51
0
0
87
958
Total
60
857
Total
18
82
Stan
dard
Total
165
4 4

1.51
1.51
13.93
13.93
15.44
15.44
418.13
0 418.13 37.39
0 37.39 261.33
0 261.33 716.85
716.85
* \ , ] ] ( ) \\ ,
01.04.2012 \ \ , ] ] ( ) \\ ,
.01.04.2012 \
.01.04.2012 (1) \ \, , ]
\\ , 31.03.2013
4 , \ , ] \\ ,
* ` 477.32 (` 418.85 ) \

1.4.6
1.4.3 \ /
\
( )
2012-13 2011-12
(i)
(ii) / \
( )
(iii)
(iv)
(v) /
) { 31.03.2013
38.06 ( 38.06 ) ]
.. ]

)
1.5
(i)
]
(ii)
]
(iii)
\
(iv) (%)
(v) \ * (]
] ) (` )
(vi) \ * (` )
1.4.4 \/ ]
I) ]
( )

1
2
2012-13 2011-12
)
)
) \

)
ii) \ ]

1
2
3
1.4.5
9.88
10.03
0.80
0.76
2.12
0.99
2.49
1.19
13.55
0.09
12.62
0.09
12
, 1949 27 X {
(\ , ,
)
# 12
, 1949 27 X {
(\
, , )
* \ ] (]
) ]
# \
( )
2012-13 2011-12
2012-13 2011-12
( )
31 \- 31st \-
2013
2012
1060.82 825.35
156
SACRIFICE
SACRIFICE
ON COLUMN ON
4 ACCOUNTS COLUMN 4
ACCOUNTS
0
PROV+
SAC
418.13
1.51
1.51
13.93
13.93
15.44
15.44
0 418.13 37.39
0 37.39 261.33
0 261.33 716.85
716.85
*Excluding the figures of Standard Restructured Advances which do not attract higher provisioning of risk weight (if applicable).
Restructured Accounts as on 01-04-2012 exclude Standard Restructured Advances which do not attract higher provisioning.
Provision as on 01-04-2012 represent provision outstanding in the books of the bank relating to restructured credit facilities.
Sacrifice as on 01-04-2012 represents sacrifice relating to opening balance of standard restructured advances in Column
(1).The amounts relating to fresh restructuring, up gradtion, advances which cease to attract higher provisioning, down
gradation are reflected at the balances relating to those accounts as on 31-03-2013.
Sacrifice in column 4 accounts includes both accounts which cease to attract higher provisioning as at the beginning of the year
as well as the current year.
*Including provision for sacrifice in respect of restructured standard assets

amounting to ` 477.32 crores (`418.85 crores)
1.4.3 Details of financial assets sold to Securitization / Reconstruction

Company for Asset Reconstruction
(` in crore)
Particulars
2012-13 2011-12
i) No. of accounts
Nil
Nil
(ii) Aggregate value (net of provisions) of
accounts sold to SC/ RC
Nil
Nil
(iii) Aggregate consideration
Nil
Nil
(iv) Additional consideration realized in respect

of accounts transferred in earlier years
Nil
Nil
(v) Aggregate gain/loss over net book value
Nil
Nil
1.4.6 FLOATING AND ADDITIONAL PROVISIONS

a) Floating Provision of `38.06 crore (` 38.06 crore), is held as at
31.03.2013 in respect of gross non performing advances over
and above the minimum prescribed as Per RBI guidelines with
a view to strengthening the financial position of the Bank.
b) The above floating provision is netted off from advance.
1.5
Business Ratios
Particulars
1.4.4 Details of non performing financial assets sold / purchased:
i) Details of non performing financial assets purchased.
(` in crore)
Sl. No. Particulars
2012-13 2011-12
1
a) No. of accounts purchased during the year NIL
NIL
b) Aggregate outstanding
NIL
NIL
2
a) of these, no. of accounts restructured
during the year
NIL
NIL
b) Aggregate outstanding
NIL
NIL
(i) Interest income as percentage to working

funds
(ii) Non-interest income as percentage to
working funds
(iii) Operating profit as percentage to
working funds
(iv) Return on assets (%)
(v) Business* (deposits plus advances) per
employee (` in crores)
(vi) Profit* per employee (` in crores)#
ii) Details of non performing financial assets sold.

Sl. No.
1.
2.
3.
Particulars
No. of accounts sold
Aggregate outstanding
Aggregate consideration received
(` in crore)
2012-13 2011-12
NIL
NIL
NIL
NIL
NIL
NIL
10.03
0.80
0.76
2.12
0.99
2.49
1.19
13.55
0.09
12.62
0.09
Return on assets is with reference to average working funds (i.e.,

total of assets excluding accumulated losses, as reported to Reserve
Bank of India in Form X under Section 27 of the Banking Regulation
Act, 1949 during the 12 months of the financial year.
31st March 31st March

2013
2012
1060.82
9.88
Working funds reckoned as average of total assets (excluding

accumulates losses, if any) as reported to Reserve Bank of India in
Form X under Section 27 of the Banking Regulation Act, 1949 during
the 12months of the financial year.
(` in crore)
Provisions towards Standard Assets*
2011-12
1.4.5 Provisions on Standard Assets

Particulars
2012-13
825.35
157
For the purpose of computation of business per employee (deposits

plus advances) inter bank deposits are excluded.
Based on the number of employees as at year end.
1.6 :
( ` )
31.03.2013
1
]
/
2-7
8-14
274.93 3719.67 1407.96

(255.57) (1278.81) (1335.31)
347.77 726.24 1744.17
(338.53 (1141.75) (2005.51)
15 to 28 29 3 6 1 3 5
3
6 1 3 5
1712.06 13806.01 12203.72 37987.12 50684.90 1313.77

685.42 123795.58
(1389.53) (10461.79) (12525.72) (32978.01) (42741.06) (2347.78) (537.63) (105851.21)
1454.37 9700.13 6761.67 10581.17 40750.36 11190.86 15116.55 98373.30
(1841.46) (9412.09) (4838.70) (9592.82) (32354.34) (9694.29) (12422.35) (83641.84)
78.21 170.90 495.91 420.80 1919.67

(43.34) (204.88) (344.05) (177.89) (1820.96)
888.52 622.24 4407.73 4590.43 24201.07 37795.48

(197.76) (239.50) (3079.57) (4351.00) (19196.83) (29655.78)
8.43
(0.00)
2925.65
(76.31)
119.99 330.80
(0.00) (1042.94)
1240.65 2149.47 203.39 1180.36 117.55 2843.03

(840.37) (1332.32) (365.03) (1348.82) (380.21) (2854.55)
11119.34
(8240.55)
363.86
(196.08)
57.83
(31.63)
59.41 225.82
(67.83) (119.67)
651.50
(434.14)
56.94
(73.36)
82.97
(77.32)
28.65 221.30
(1.10) (208.79)
1137.03
(781.63)
53.52
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
2548.97
(1630.98)
973.52 1679.54 122.80

(828.84) (1334.48) (113.83)
36.33
(20.03)
10.45
(31.41)
0.00
(0.00)
3212.50
(2689.16)

1.7 ]
1.7.1. ]
31 \
2013
) ]
i) - ] :
( )
31 \
2012
6532.23
5033.38
5097.23
3999.33
3085.62
3044.63
0.99
2.02
(\) (\) -
] ( .2954.18 + - .308.42 )
3262.60
1049.11
12881.44
9129.14
]
(ii) ] - ]
( , , ] , ,
] , , , , )
] -
( .2782.54 + - .303.08 )
(iii) () ] .
. ] .
) ]
158
1.6 Asset Liability Management:
(` in crore)
Maturity pattern of certain items of Assets & Liabilities as on 31.03.2013
Day 1
2-7
days
8-14
days
15 - 28
days
Over 3
29 days months &
3 months
upto 6
months
Over 6
months &
upto 1
year
Over 1
year &
upto 3
years
Over 3
years &
upto 5
years
Over 5
years
Total
Deposits
274.93 3719.67 1407.96 1712.06 13806.01 12203.72 37987.12 50684.90 1313.77

(255.57) (1278.81) (1335.31) (1389.53) (10461.79) (12525.72) (32978.01) (42741.06) (2347.78)
Loans/Advances
347.77
726.24 1744.17 1454.37 9700.13 6761.67 10581.17 40750.36 11190.86 15116.55
(338.53) (1141.75) (2005.51) (1841.46) (9412.09) (4838.70) (9592.82) (32354.34) (9694.29) (12422.35)
Investments
78.21
(43.34)
170.90
(204.88)
Borrowings
8.43
(0.00)
2925.65
(76.31)
Foreign Currency
363.86
Assets
(196.08)
57.83
(31.63)
Foreign Currency
Liabilities
82.97
(77.32)
56.94
(73.36)
495.91
420.80 1919.67
(344.05) (177.89) (1820.96)
888.52
(197.76)
119.99
330.80
(0.00) (1042.94)
1240.65 2149.47
(840.37) (1332.32)
59.41
(67.83)
651.50
(434.14)
225.82
(119.67)
28.65
221.30
(1.10) (208.79)
685.42 123795.58
(537.63) (105851.21)
622.24 4407.73 4590.43 24201.07

(239.50) (3079.57) (4351.00) (19196.83)
203.39 1180.36
(365.03) (1348.82)
117.55 2843.03
(380.21) (2854.55)
98373.30
(83641.84)
37795.48
(29655.78)
11119.34
(8240.55)
1137.03
(781.63)
53.52
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
2548.97
(1630.98)
973.52 1679.54
(828.84) (1334.48)
122.80
(113.83)
36.33
(20.03)
10.45
(31.41)
0.00
(0.00)
3212.50
(2689.16)
As compiled by the management and relied upon by the Auditors

1.7 Exposures
1.7.1. Exposure to Real Estate Sector
(` in crore)
As on 31st
March-2013
Category
As on 31st
March-2012
a) Direct exposure
i) Residential Mortgages Lending fully secured by mortgages on residential property that is or will be
occupied by the borrower or that is rented;
6532.23
5033.38
Of which individual housing loans eligible in inclusion in priority sector
5097.23
3999.33
3085.62
3044.63
0.99
2.02
3262.60
1049.11
12881.44
9129.14
ii) Commercial Real Estate Lending secured by mortgages on commercial real estates (office buildings,
retail space, multi-purpose commercial premises, multi-family residential buildings, multi-tenanted
commercial premises, industrial or warehouse space, hotels, land acquisition, development and
construction etc.).Exposure would also include nonfund based (NFB) limits.
(FB: ` 2782.54 Crore + NFB: ` 303.08 Crore)
iii) Investments in Mortgage Backed Securities (MBS) and other securitized exposures
a. Residential
b. Commercial Real Estate
b) Indirect Exposure
Fund based and non-fund based exposures to National Housing Bank (NHB) and Housing Finance Companies
(HFCs) (FB: ` 2954.18 Crores + Investments ` 308.42 Crores)
Total Exposure to Real Estate Sector
159
1.7.2 ] ] ]
(` )
31 \
2012
31 \
2013
i)
\/ \
]
ii) // \ (/ ),
, \ \

iii) ] ] \
\
iv) ] \
\ ] ]
\ \
] ,
v) ]
vi) / /\ ]
]
vii) /
viii) \ \

ix) ]
x) ] ] (] ])
] ] ]
108.82
137.15
0.18
0.05
0.26
122.00
11.41
8.67
235.00
425.00
-
196.95
439.62
176.34
982.21
1.7.3 ] ]*
(` )
]
(1)
( 2)
( 1)
( 2)
( 1)
\\ ( 2)
\\ ()
\ 31, 2013
] ()

1088.54
934.57
122.39
6.76
8.87
0.00
0.00
2161.13
\ 31, 2012
] ()

809.19
517.79
83.61
0.05
8.57
0.00
0.00
1419.21
*
] 1% , : ]

160
1.7.2 Exposure to Capital Market

(` in crore)
As on 31st
March-2013
Particulars
(i)
Direct investments in equity shares, convertible debentures / bonds and units of

equityoriented mutual funds, the corpus of which is not exclusively invested in corporate debt.
As on 31st
March-2012
108.82
137.15
Advances against shares / bonds / debentures or other securities or on clean basis

individuals for investment in shares (including IPOs/ESOPS), convertible bonds,
convertible debentures and units of equity oriented mutual funds.
0.18
0.05
(iii) Advances for any other purposes where shares or convertible bonds or convertible
debentures or units of equity oriented mutual funds are taken as primary security.
0.26
122.00
8.67
11.41
235.00
(vi) Loans sanctioned to corporate against the security of shares / bonds / debentures or other
securities or on clean basis for meeting promoters' contribution to the equity of new companies
in anticipation of raising resources.
425.00
(vii) Bridge loans to companies against expected equity flows /issues;
(viii) Underwriting commitments taken up by the bank in respect of primary issue of shares or
convertible bonds or convertible debentures or units of equity oriented mutual funds.
(ix) Financing to stock brokers for margin trading.
All exposures to venture capital funds (both registered and unregistered)
196.95
176.34
Total Exposure to Capital Market
439.62
982.21
(ii)
(iv) Advances for any other purposes to the extent secured by the collateral security of shares
or convertible bonds or convertible debentures or units of equity oriented mutual funds, i.e.,
where the primary security other than shares / convertible bonds / convertible debentures or
units of equity oriented mutual funds does not fully cover the advances.
(v)
(x)
Secured and unsecured advances to stockbrokers and guarantees issued on behalf of

stockbrokers and market makers
1.7.3 Risk Category wise Country Exposure*

(` in crore)
Risk Category
Exposure (net)
Insignificant (A1)
As on March 31, 2012
As on March 31, 2013

Provision held
Exposure (net)
Provision held
1088.54
NIL
809.19
NIL
Low (A2)
934.57
NIL
517.79
NIL
Moderately Low (B1)
122.39
NIL
83.61
NIL
Moderate (B2)
6.76
NIL
0.05
NIL
Moderate High (C1)
8.87
NIL
8.57
NIL
High (C2)
0.00
NIL
0.00
NIL
Very High (D)
0.00
NIL
0.00
NIL
Total
2161.13
1419.21
*based on categorization followed by Export and Credit Guarantee Corporation of India Ltd.,
The net funded exposure of the bank in respect of foreign exchange transactions with each country is within 1% of the total
assets of the Bank, hence no provision is required to be made as per RBI guidelines.
161
1.7.4. (]),
(])
(` )

] ]

]
\
\ \
]
\ ,
,
]
\ \ ]
, ] , \ , 1972
\
2.3.2
1.7.5. , ]
(.153.41
) \ II ]
-]
] --- (1.48%)
1.8
(` )
2012-13 2011-12

518.00
460.00

(36.21)
19.45

0.15
0.15
] \
] ] \
] 29.09.1995 01.04.2010
\ ]
\
]
\ ]
01.04.2010 \
] , ] \
10% ]

]
1.9 ..
31 \ 2013 ..

2.3.3
\

\ ] \
10%
- \

2. ]

2.1. 5- ,
]
... ]

2.3.4
2.2 9: ]
\ 17 (2)
/
]
\ /\ /
240
-
50% 120

2.3 - 15 \
01.04.2007 ]
-15 ()
]

2.3.5 ] - 15
()
] \
:-
2.3.1 \
\ \ ]
/
162
1.7.4. Details of Single Borrower Limit (SGL), Group

Borrower Limit (GBL) exceeded by the bank
(` in crore)
contributions to the Trust, towards funding this gratuity,

payable every year. In accordance with the gratuity
fund's rules, actuarial valuation of gratuity is done every
year. Actuarial valuation of gratuity liability is calculated
based on certain assumptions regarding discount rate,
salary growth, mortality and staff attrition as per the
projected unit credit actuarial method.
Name of the Exposure

Limit
Period during Maximum
borrower
ceiling sanctioned which limit
Amount
exceeded
outstanding
during the
period
-
The gratuity payable to the employees is worked out by

way of two methodologies i.e., as per the Payment of
Gratuity Act, 1972 and other as per service rules and the
employee will be entitled to get most beneficial amount.
The bank has not exceeded the ceiling for Single Borrower or Group
Borrower wise exposures in any of the Group accounts.
2.3.2 Pension
Bank pays pension under a defined benefit plan
covering the employees who have opted for pension and
also to the employees joining the bank's service on or
after 29.09.1995 but before 01.04.2010.The plan
provides for a pension on a monthly basis to these
employees on their cessation from the bank's service as
provided for in Andhra Bank Employee Pension
Regulations. Pension Fund is managed by Andhra Bank
Employees Pension Fund Trust.
1.7.5. The amount of advances, for which intangible securities, such as

charge over the rights, licenses etc., have been taken as security is
NIL (`153.41 cr) and the said advances have been classified as
unsecured forming part of Unsecured advances in Schedule Item
II-C Such advances constitute (1.48%) of total unsecured
advances.
1.8 Amount of Provisions for Income-tax for the year
(` in crore)
Particulars
2012-13
2011-12
Provision for Income Tax
518.00
460.00
Deferred Tax
(36.21)
19.45
0.15
0.15
Wealth Tax
Employees who joined on after 01.04.2010 are entitled

to Defined Contributory pension scheme where under
the employee will contribute 10% of pay and eligible
allowance with equivalent contribution being made by
the Bank and the same will be maintained as per the
guidelines issued by the Pension Fund Regulatory and
Development Authority.
1.9 Penalties imposed by Reserve Bank of India

During the year ended 31st March, 2013, no penalty has
been levied by RBI.
2.
Disclosures in terms of Accounting Standards (AS)

issued by the Institute of Chartered Accountants of
India
2.1. Accounting Standard 5 Statement of profit or loss

for the period, prior period items
There is no material prior period item included in Profit
and Loss account which is required to be disclosed as
per the Accounting Standard issued by the Institute of
Chartered Accountants of India read with guidelines
issued by Reserve Bank of India.
2.2 Accounting Standard 9: Revenue Recognition
As mentioned in accounting policy (2) of schedule 17
certain items are accounted on cash basis on account of
statutory/regulatory requirements and materiality
2.3 A C C O U N T I N G S TA N D A R D 1 5 E M P L O Y E E
BENEFITS
Bank has adopted Accounting Standard 15 (Revised)
issued by the Institute of Chartered Accountants of India
with effect from 01.4.2007
2.3.1 Gratuity
Bank pays gratuity to employees who retire/resign from
Bank's service as per rules. The Bank makes
163
2.3.3 Provident Fund

Bank is statutorily required to maintain a provident fund
as a part of its retirement benefits to the employees.
The fund is administered by a trust. Each employee
contributes 10% of their basic salary and eligible
allowances and Bank contributes equally amount to the
fund in respect of non-pension optees. The investment
of the fund is made according to the investment pattern
prescribed by Government of India.
2.3.4 Leave Encashment
An employee is entitled to encash privilege leave
standing to his/her credit subject to a maximum of 240
days on the date of superannuation/Voluntary
Retirement/death and on resignation encashment of
privilege leave will be restricted to the tune of 50% of
privilege leave standing to the credit of the employee
subject to a maximum of 120 days.
Actuarial valuation of leave encashment liability is done
every year and accordingly, Bank is contributing to the
trust fund.
2.3.5 The summarized position of post-employment benefits
and long term employee benefits recognized in the Profit
& Loss Account and Balance Sheet as required in
accordance with Accounting Standard 15 (Revised)
issued by the Institute of Chartered Accountants of India
are as under :
()
()
(` )

]
\
() () ()
2394.70
(2084.06)
201.15
(175.27)
245.90
(151.49)
546.17
(515.38)
43.69
(41.23)
10.55
(13.42)
253.39
(230.31)
20.27
(18.42)
7.76
(6.98)

()

2834.32
(2394.70)
561.93
(546.17)
280.39
(253.39)

]
\
2841.03
(2398.95)
571.86
(546.17)
283.35
(262.09)
--
--
--

-123.64
(-102.94)
116.21
(86.82)
-50.90
(-48.70)
12.42
(24.84)
-33.58
(-32.69)
32.55
(30.37)
2834.32
(2394.70)
561.93
(546.17)
280.39
(253.39)
()
() ] \ :
\

]
\
]
]

(` )
() () ()
2398.95
(2087.22)
546.17
(515.38)
262.09
(233.51)
-226.22
(181.66)
315.90
(240.17)

-123.64
(-48.70)

23.60
()
(-7.16)
]
\
2841.03
(2398.95)
-56.42
(44.32)
20.17
(35.17)
-50.90
(-102.94)
-24.78
(21.97)
30.06
(39.30)
-33.58
(-32.69)
571.86
(546.17)
(` )
() () ()
(/)

(` )
() () ()
245.90
(151.49)
10.54
(13.42)
7.75
(6.98)
--
--
--
43.69
(41.23)
20.27
(18.42)
-225.05
(-177.41)
-46.38
(-44.32)
-24.78
(-21.97)
92.61
(90.82)
12.42
(24.84)
-32.55
(35.97)
409.56*
(240.17)
53.28*
(35.17)
35.80
(39.30)
201.15
(175.27)
* ` 126.66 (.93.66
.33.00 \ )
283.35
(262.09)
164
(a) Changes in the present value of the obligations:
(c) Amount recognized in Balance Sheet:
(` in crore)
EMPLOYEE
BENEFITS
Present value
of obligation
as at the
beginning of
the year
PENSION
(Funded)
2394.70
(2084.06)
546.17
(515.38)
253.39
(230.31)
Interest Cost
201.15
(175.27)
43.69
(41.23)
20.27
(18.42)
Current
Service Cost
245.90
(151.49)
10.55
(13.42)
7.76
(6.98)
Past Service
Cost for
New Optees
-123.64
(-102.94)
-50.90
(-48.70)
-33.58
(-32.69)
Benefits Paid
Actuarial loss/
(gain) on
obligations
Present value
of obligation at
year end
(` in crore)
LEAVE
GRATUITY
(Funded) ENCASHMENT
(Funded)
LEAVE
GRATUITY
ENCASHMENT
(Funded)
EMPLOYEE
BENEFITS
PENSION
(Funded)
Estimated
Present Value
of Obligations
as at the end
of the year
2834.32
(2394.70)
561.93
(546.17)
280.39
(253.39)
Fair Value of
Plan Assets
as at the end
of the year
2841.03
(2398.95)
571.86
(546.17)
283.35
(262.09)
--
Net Liability recognized in

Balance Sheet
(Funded)
(d) Expenses recognized in Profit & Loss Account:

116.21
(86.82)
2834.32
(2394.70)
12.42
(24.84)
32.55
(30.37)
561.93
(546.17)
(` in crore)
EMPLOYEE
BENEFITS
280.39
(253.39)
Current Service
Cost
(b) Change in the Fair Value of Plan Assets:
PENSION
(Funded)
LEAVE
GRATUITY
(Funded) ENCASHMENT
(Funded)
245.90
(151.49)
10.54
(13.42)
7.75
(6.98)
--
201.15
(175.27)
43.69
(41.23)
20.27
(18.42)
-225.05
(-177.41)
-46.38
(-44.32)
-24.78
(-21.97)
92.61
(90.82)
12.42
(24.84)
-32.55
(35.97)
409.56*
(240.17)
53.28*
(35.17)
35.80
(39.30)
(` in crore)
EMPLOYEE
BENEFITS
Fair value of
Plan Assets at
the beginning
of the year
PENSION
(Funded)
(Funded)
Interest Cost
2398.95
(2087.22)
546.17
(515.38)
262.09
(233.51)
Expected Return on
Plan Assets
226.22
(181.66)
56.42
(44.32)
24.78
(21.97)
Employer's
contribution
315.90
(240.17)
20.17
(35.17)
30.06
(39.30)
Benefits Paid
-123.64
(-102.94)
-50.90
(-48.70)
-33.58
(-32.69)
Acquisition
Adjustments
Actuarial Loss/
(gain) on
Obligations
Fair Value of Plan
Assets at the end of
the year
Past Service
Cost for
New Optees
LEAVE
GRATUITY
(Funded) ENCASHMENT
Expected
return on
Plan Asset
Net Actuarial
(Gain)/ Loss recognized
in the year
Total Expenses recognized

in Profit & Loss Account/
contributed to funds
23.60
(-7.16)
2841.03
(2398.95)
571.86
(546.17)
*Including unamortized amount of Rs.126.66 crores

(`93.66 crores towards pension and `33.00 crores towards
gratuity).
283.35
(262.09)
165
(.)
(]) \ ( )
(` )

/ ]
]

503.72
17.73
(498.93)
(20.80)
]
173.00
6.09
(149.00)
(6.21)
] 2077.93
73.14
(1685.74)
(70.27)

81.46
2.87
(58.29)
(2.43)

4.92
0.17
(6.99)
(0.29)
2841.03
100%
(2398.95)
(100%)
(\) (
):
() % () % () %

]

8.12
(8.00)
(8.40)
8.00
8.00
(8.00)
9.00
(9.60)
(8.50)
9.60
9.60
(9.60)
01.04.2012

31.03.2013

(` )

13.13
0.41
26.39
0.74
1.20
13.38
0.00
0.40
0.00
36.59
0.00
0.67
0.00
1.69
0.00
0.25 -0.01
(-2.41) (-0.18)
(^) \ :

10.20 -0.07 0.49

(2.4) (-0.06) (0.57)
` 1.04
(1.04 )
` 0.28
(0.62 )
2.3.6 : ( : ]
\ )
( )
2010-11 ... .
..80/21.04.018/2011-12 09 , 2011
\ \
\ 3.50 . 10
\ \ ]
\ 31\,
2012 379.99 93.66
] 1/5 33 ,
] \ 1/5
\
253.33 ]
4.00
4.00
(4.00)
(3.00)
4.00
(4.00)

, , ] \
] ]
2.3.9 1 , 2012
.50
) \ ] : - ]
\

,
\ ,

166
(e) Investment details of Pension Fund Trust:
(h) Other long term employees' benefits (Un-Funded)

(` in crore)
Description of investments
Amount % of investments
Central Government Securities
503.72
(498.93)
17.73
(20.80)
State Government Securities
173.00
(149.00)
6.09
(6.21)
2077.93
(1685.74)
73.14
(70.27)
81.46
(58.29)
2.87
(2.43)
4.92
(6.99)
0.17
(0.29)
2841.03
(2398.95)
100%
(100%)
Investments in PSUs
Other Investments
Bank Balance
Total
(` in crore)
LTC/LFC
Encashment
Discount Rate
PENSION
(Funded)
%
8.12
(8.40)
GRATUITY
(Funded)
%
8.00
(8.00)
9.60
(9.60)
9.60
(9.60)
Expected Rate
of Salary
Increase
4.00
(3.00)
4.00
(4.00)
4.00
(4.00)
Projected unit
credit
Projected unit
credit
Method Used
Relocation
Expenses
0.41
26.39
0.74
1.20
Liability as
on 31.03.2013
13.38
0.40
36.59
0.67
1.69
0.00
0.00
0.00
0.00
0.00
0.25
(-2.41)
-0.01
(-0.18)
10.20
(2.4)
-0.07
(-0.06)
0.49
(0.57)
(i) Short term employees' benefits:

Short term Compensated Absences:
Rs. 1.04 crore

(1.04 crore)
(j) Contribution to Provident Fund:
Rs. 0.28 crore

(0.62 crore)
2.3.6 : Prudential Regulatory treatment (reopening of
Pension option and enhancement of gratuity)
8.00
(8.00)
9.00
(8.50)
ExGratia
13.13
Amount
debited to
Profit & Loss
Account
LEAVE
ENCASHMENT
(Funded)%
Expected Rate
of Return on
Plan Assets
Sick
Leaves
Liability as on
01.04.2012
Transitional
Liability
(f) Principal Actuarial assumption at the Balance Sheet

Date (expressed as weighted average):
ACTURIAL
ASSUMPTIONS
Silver
Jubilee
Award
During the year 2010-11, the Bank opted for amortization

of additional liability arising on account of exercise of
second pension option by the employees and revision of
gratuity limit from `3.50 lacs to `10 lacs as per the
Payment of Gratuity Act over a period of five years
pursuant to permission given by Reserve Bank of India
vide its circular no. DBOD.BP.BC.80/21.04.018/2010-11
dated 09th of February, 2011. Out of the amount of
`379.99 cr., carried forward as on 31st March, 2012 an
amount of ` 93.66 cr., being 1/5th of the additional
pension liability and `33 cr., being 1/5th of additional
liability on account of gratuity has been charged off to the
Profit and Loss Account for the current year and balance
amount of `253.33 cr has been carried forward.
Projected unit
credit
The estimate of future salary increase, considered in

actuarial valuation, takes into account the inflation,
seniority, promotion and other relevant factors, such as
supply and demand in employee market.
2.3.7 Provision of ` 50 crore has been made towards wage

revision arrears effective from 1st November, 2012
pending wage negotiation
(g) The financial assumptions considered for the

calculations are as under:Discount Rate: - The discount rate has been chosen by
reference to market yield on government bonds as on the
date of reporting.
Expected Rate of Return:
In case of pension, the expected rate of return is taken on
the basis of yield on government bonds. In case of
gratuity and leave encashment the actual return has
been taken.
Salary Increase: On the basis of past data.
167
3. ( 17)

1
]
() ]
() /
()
() \
- ]
\
2

() ]
() /
()
() \

3

() ]
() /
()
() \
.)

4

() ]
() /
()
() \
.)
( )
2011-12
2012-13
2795.00
6303.72
3768.65
1089.75
13957.12
13957.12
2060.55
5808.81
3590.31
738.99
12198.66
12198.66
554.16
1249.82
747.20
216.05
2767.23
996.16
1771.07
481.94
1289.13
475.50
1340.46
828.51
170.53
2815.00
990.73
1824.27
479.60
1344.67
37632.40
64195.44
33020.84
1157.02
10293.24
146298.94
29628.90
52795.13
26809.01
3618.84
11693.51
124545.39
2920.53
44465.45
63206.53
16123.60
11141.65
137857.76
8441.18
146298.94
2406.39
33117.89
54260.54
18472.79
8808.39
117066.00
7479.39
124545.39
( )

(i) ... -17 "] \","/ ", "
" " \" "" / \
(ii) ] ]
168
3. SEGMENT REPORTING (AS 17)

Business segments
S.No.
1
(` in crore)
Business Segments
Segment Revenue
2012-13
(a) Treasury
2795.00
2060.55
(b) Corporate/Wholesale Banking
6303.72
5808.81
(c) Retail Banking
3768.65
3590.31
(d) Other Banking Operations

Total
Less: Inter Segment Revenue
12198.66
554.16
475.50
1249.82
1340.46
(c) Retail Banking
747.20
828.51
216.05
170.53
2767.23
2815.00
996.16
990.73
1771.07
1824.27
481.94
479.60
1289.13
1344.67
(a) Treasury
37632.40
29628.90
64195.44
52795.13
(c) Retail Banking
33020.84
26809.01
Segment Results
Total
Less : Other Un-allocable Expenditure
Total Profit Before Tax
Income Tax and other taxes paid
Net Profit
Segment Assets
(d) Other Banking Business

(e) Un-allocable Assets
Total Assets
4
738.99
12198.66
(a) Treasury
1089.75
13957.12
13957.12
Income from Operations

2
2011-12
1157.02
3618.84
10293.24
11693.51
146298.94
124545.39
Segment Liabilities
2920.53
2406.39
(a) Treasury
44465.45
33117.89
(c) Retail Banking
63206.53
54260.54
16123.60
18472.79
(e) Un-allocable Liabilities
11141.65
8808.39
137857.76
117066.00
8441.18
7479.39
146298.94
124545.39
Total
Capital & Reserves
Total Liabilities
(Compiled by Management and relied upon by the Auditors)

Note on Segment Results
(I) As per guidelines of RBI on compliance with Accounting Standard AS-17, Bank has adopted Treasury Operations,
Corporate/Wholesale Banking, Retail Banking and Other Banking Operations as Primary business segments
and Domestic Segment as secondary / geographic segment.
(ii) Segment revenue represents revenue from external customers.
(iii) Results of various segments are arrived at in the proportion of revenue of respective segment
169
: ,
\ , :
4 ( 18)

()
:
I) .. ,
ii) .. ,
iii) .. , (05/10/2012 )
iv) .. ], (31.08.2012 )
()

()
I) \
()
i)
ii) () \
iii) ()
:-
( )
2012-13
2011-12

(02.01.2012 )
19,03,171
3,89,562
5,25,956
16,63,050

(31.12.2011 )

(31.08.2012 )

(26.12.2011 )

(5.10.2012 )
14,51,002
15,33,812
20,18,740
3,41,691
7,14,275
--
2,75,000
13,14,525

(30.09.2011 )
-18 \ 9 ] ]
] ] ,
] - () \ - 133.77 (9.29 ) () .28.40
(.28.40 )
5. ] (10/- ) ( 20)
..
...
...
( ) ( )
. ( )
]
170
2012-13
23.04
23.04
2011-12
24.03
24.03
1289.13
55.95
23.04
1344.67
55.95
24.03
Geographic segments:-
iii) Shri S K Kalra, Executive Director (With effect from

5/10/2012)
The Bank does not have any branches outside India, the
only reportable Geographical segment is of domestic
operations, and hence no separate disclosure is made.
iv) Shri A.A. Taj, Executive Director (upto 31.08.2012)

(b) Subsidiary
4. RELATED PARTY DISCLOSURES (AS 18)
Andhra Bank Financial Services Ltd.,
Names of the Related Parties and their relationship

with the Bank
(c) Associate
Chaitanya Godavari Grameena Bank
(a) The Bank has identified the following persons to be the

Key Management Personnel as per the Accounting
Standard
i)
(d) Joint Ventures

i)
Shri B.A. Prabhakar, Chairman and Managing

Director
India First Life Insurance Company Ltd.,
ii) India International Bank (Malaysia) Bhd.

iii) ASREC India (P) Ltd.,
ii) Shri K.K. Misra Executive Director

Transactions with Related parties:Sl. No
Amount in `
Name
Relationship
Nature of transaction
2012-13
2011-12
Sri B.A. Prabhakar
Chairman &
Managing Director
(From 02.01.2012)
Remuneration
19,03,171
3,89,562
Sri.R. Ramachandran
Chairman &
Managing Director
(Upto 31.12.2011)
Remuneration
5,25,956
16,63,050
Sri A. A. Taj
Executive Director
(upto 31.08.2012)
Remuneration
14,51,002
20,18,740
Sri K.K.Misra
Executive Director
(With effect from
26.12.2011)
Remuneration
15,33,812
3,41,691
Sri S K Kalra
Executive Director
(with effect from
5.10.2012)
Remuneration
7,14,275
--
Sri Anil Girotra
Executive Director
(upto 30.09.2011)
Remuneration
2,75,000
13,14,525
The transactions with the Subsidiary and Associate Banks have not been disclosed in view of para 9 of the AS-18 on Related
Party Disclosures, which exempts state controlled enterprises from making any disclosure pertaining to their transactions with
other related parties which are also state controlled.
Capital invested in Joint Venture -India International Bank (Malaysia) Bhd ` 133.77 cr ( ` 9.29 cr) ASREC India (P) Ltd., `28.40 cr
(` 28.40 cr)
5. EARNING PER SHARE (Face Value ` 10/- each) (AS 20)
Particulars
2012-13
2011-12
Basic EPS `
23.04
24.03
Diluted EPS `
23.04
24.03
1289.13
1344.67
Weighted Average No. of Shares (in crore)
55.95
55.95
Basic Earnings per Share `
23.04
24.03
Calculation of Basic E P S
Net Profit (` In crore) (excluding extra ordinary items, net of taxes)
171
\ ( )
6. ( 22)
6.1 31.03.2013 :-
( )
( )

\ 31, 2013
(1) , ]
- ( 22) 16.31

(2) - , 1961
/ 11.54

(3)
\

27.85
\ 31, 2012
--
28.31
--
4.53
--
/
2012-13
2011-12
2.24
0.16
0.30
2.10
/
/

10
10.1
82.09
( )

" " -
32.84 123.29
(i)
(ii) ]
(iii)
(iv)
(v)
(v) :
)
)
- , 1961 36(i)(viii)
()
\ -

]
7. \ (-24)
2.19
0.28
0.23
2.24
2012-13 2011-12
97.35
45.02
615.12 481.68
177.00 100.00
518.15 460.15
(36.21)
19.45
42.28
64.41
303.95
60.08
1478.10 1470.33
10.2 (- { )
2012-13 ,
\ ]
\

( )

]

(- )

8. ] ( 28)
28 8 10 \ - ]
( ]) ]\
\ -
]

2012-13 2011-12
38.06
38.06
---38.06
-38.06
10.3 ]

) ()
)
()
)
) ]
810
)
)
84807
)
)

85596
)
)
21
9. , ( 29)
\ 12
/\/ ^, ,
, , ] ,

172
8
7
1
(` in crore)
6. Accounting for taxes on income (AS 22)

6.1 The major components as on 31.03.2013 are as follows:-
Timing Difference
(1) Provision created in
books but not
claimed as deduction
(2) Excess/Less
Depreciation claimed as
per Income
Tax Act, 1961
(3) On account of
amortization of
additional liability due
to re-opening of pension
option and revision in
ceiling of gratuity
Total
31st March-2013
DTA
DTL
16.31
Particulars
(` in crore)
31st March-2012
DTA
DTL
28.31
Legal cases/contingencies
2012-13
2011-12
2.24
2.19
Opening balance
Provided during the year
0.16
0.28
Amounts used during the year
0.30
0.23
Closing balance
2.10
2.24
Outflow on
Settlement/
Crystallization
Outflow on
Settlement/
Crystallization
Timing of outflow/uncertainties
11.54
4.53
--
10 Other disclosures
10.1 PROVISIONS AND CONTINGENCIES
(` in crore)
-
82.09
--
123.29
27.85
82.09
32.84
123.29
Breakup of
Provisions and Contingencies shown
under the head Expenditure in Profit and Loss Account
(i) Depreciation in value of Investments
No Provision for Deferred Tax Liability (DTL) on deduction

claimed under Section 36(1)(viii) of the Income Tax Act,
1961 has been made as the same is considered as a
Permanent Difference consequent to the decision taken
by the Bank, not to withdraw the Reserves created under
the provisions of the Income Tax Act,1961.
97.35
45.02
615.12
481.68
(iii) Standard Assets
177.00
100.00
(iv) Taxes
518.15
460.15
(v) Deferred Tax
(36.21)
19.45
42.28
64.41
303.95
60.08
1478.10
1470.33
TOTAL
During the financial year 2012-13 the bank has not

discontinued the operations of any of its branches, which
resulted in shedding of liability and realization of the
assets and no decision to discontinue an operation which
will have the above effect has been finalized.
2011-12
(ii) Non Performing Assets
(vi) Other provisions and contingencies:

a) Restructured advances
b) Other provisions
7. Discontinuing operations (AS-24)
2012-13
10.2 FLOATING PROVISIONS (Countercyclical

provisioning buffer)
(` in crore)
2012-13
Particulars
Opening balance
8. Impairment of Assets (AS 28)
The indications listed in paragraphs 8 to 10 of Accounting

Standard 28'Impairment of Assets' (issued by the ICAI )
have been examined and on such examination, it has
been found that none of the indications are present in the
case of the bank. A formal estimate of the recoverable
amount has not been made, as there is no indication of a
potential impairment loss.

(Purpose and amount of drawdown made)
Closing balance
2011-12
38.06
38.06
38.06
38.06
There is no drawdown from reserves during the year.

10.3
9. PROVISIONS, CONTINGENT LIABILITIES AND

CONTINGENT ASSETS (AS 29)
Disclosure of complaints and unimplemented

awards of Banking Ombudsman
a) Customer complaints
(in numbers)
a) Pending at the
beginning of the year:
Contingent liabilities mentioned in Schedule 12 are

dependent upon the outcome of Court/arbitration/out of
Court settlements, disposal of appeals, the amount being
called up, terms of contractual obligations, devolvement
and raising of demand by concerned parties, as the case
may be.
Movement of provisions for liabilities (excluding provision
for others)
b) Received during
the year:
b) Passed by the Banking

84807 Ombudsman during the year:
c) Redressed during
the year:
c) Implemented
85596 during the year:
d) Pending at the end of

the year:
173
b) Awards passed by the Banking

Ombudsman (in numbers)
a) Unimplemented at the
810 beginning of the year:
-
d) Unimplemented at the end of

21 the year:
""
70898, 74, ]/ 7110,
63, 4420 ( ), 464 ( )
1778
77.50
(] 310 ] 25% )
]
() \
] ]
.05.08.2010 \ \
] \ /\
]
.31.03.2013 () \
] 77.50
] 10 77,50,000
]
'' ''

10.4. ] \ :
31.03.2013 , 1089 (838 )
\ /- ] ]
3804.17 . (4994.26 ) 31.03.2013
\ 2358.57 (2827.32 )
\ :
() \
.13.08.2010 {
^
310 ]
] \
77.50
25%
40% { 35% {
, ,
10.5 ]
1
2
3
@
] 31.03.2013*
1.
2.
a
b
c
3.
4.
5
6
7
8
9

(++)
< 1
1-3
>3

(40.22) +
(1062.68)
(
]
II ] )
]/]
]
\

1985.74
1688.53
1282.68
333.27
72.58
( )
4
5
, /, (4) (3)
@ ] (%)
\
373.50
18.81
853.53
50.55
480.02
37.42
300.93
90.30
72.58
100.00
1102.90
4777.17
1102.90
2329.93
100.00
48.77
--
38.06
--
--
--
--
-4777.17
-2367.99
-49.57
49.57%
* - ] ] .. - (
)
174
The total complaints received during the year include

70898 number of complaints for ATM, 74 for Credit
Card,7110 for RTGS/NEFT, 63 for Pension 4420 (SMS
upset), 464 (Banking Ombudsman) and 1778 (General) .
accorded approvals for the Bank for infusing capital funds

equivalent to Malaysian Ringgit 77.50 million (being 25%
of total paid up capital of Malaysian Ringgit 310 Mio) for
the establishment of proposed JV Bank.
10.4. Disclosure of Letters of Comfort (LoC) issued by

bank:
For the purpose of fulfillment of capital requirements of its

joint venture Indian International Bank (Malaysia) Bhd,
Bank has issued a Letter of Undertaking and a Letter of
Comfort on 05.08.2010 favoring Bank Negara Malaysia
and the financial impact on such LOC/LOU is limited to
the extent of Andhra Bank's share of capital contribution.
As on 31.03.2013, Andhra bank's contribution to equity
capital of India International Bank (Malaysia) BHD is
Malaysian Ringgit 77.50 Mio representing 77,50,000 fully
paid equity shares of Malaysian Ringgit 10 per share.The
rupee equivalent of such capital contribution is included
under the head Investments in Subsidiaries and Joint
Ventures by the Bank.
During the year ended 31.03.2013, 1089 (838) Letters of

Comfort/Letter of Undertaking have been issued by the
bank amounting to ` 3804.17 crore (` 4994.26 crore)
The Letters of Comfort outstanding as on 31.03.2013 are
amounting to ` 2358.57 crore (` 2827.32 crore).
Letter of Comfort on behalf of Joint Venture
The Bank has formed a joint venture Bank in Malaysia
with joint venture partnership of Bank of Baroda and
Indian Overseas Bank on 13.08.2010 in the name of India
International Bank (Malaysia) BHD.
Andhra Bank's share of joint venture is 25% and 40% by
Bank of Baroda and 35% from Indian Overseas Bank.
Reserve Bank of India and Government of India, Ministry
of Finance, Department of Financial Services have
Thus, the Bank has fully remitted Malaysian Ringgit 77.50

Mio under the Letter of Comfort issued, towards its share
in the paid up capital of Malaysian Ringgit 310 Mio.
10.5 Provisioning Coverage Ratio

1
(` in crores)
3
Gross NPA@ plus technical /

prudential write-off as on
31.03.2013 *
Specific Provisions held including

provisions for diminution in fair
value of the restructured accounts
classified as NPAs plus technical /
prudential write-off @
Ratio of
(4) to (3)
(%)
1.
Sub-Standard Advances
1985.74
373.50
18.81
2.
Doubtful Advances (a+b+c)
1688.53
853.53
50.55
a)
b)
c)
< 1 year
1-3 Years
>3 years
1282.68
333.27
72.58
480.02
300.93
72.58
37.42
90.30
100.00
Advances classified as Loss Assets

(40.22) + Technically Writtenoff
(1062.68)
1102.90
1102.90
100.00
Total
4777.17
2329.93
48.77
Floating Provisions for Advances

(only to the extent they are not used
as Tier II Capital)
38.06
DICGC / ECGC claims received and

held pending adjustment
Part payment received and kept in

Suspense Account or any other
similar account
Total
Provisioning Coverage Ratio
4777.17
2367.99
49.57
49.57%
*Technical or prudential write off is the amount of nonperforming loans which are written off at branches and loans which
are outstanding in the books of the branches but have been written off (fully or partially) at Head Office level.
175
@ / - ]
\
10.10 { , ] ( )
10.11 ] (]
] )
]
10.12 31 \, 2013 ] ]
\
10.13.

, 2010-11 , ]
/ , 656.65 ( 573.56 )

/
] /
(\ 11 III - )
10.14 , 1961 36(1)(viii)

.310
\-2 '' '' V
10.15 2003-04 50.36 1437

(\) ]
\
- ] , ] /
-
- .01.12.2012 -
.31.03.2013
(.31.03.2012 .1.15 ) .0.99
- .31.03.2013
(31.03.2012 .2.02 )
31.03.2013 3.92 - 225
(.31.03.2012 0.68 )
-
0.68
( 0.68 ) ]
\

.1.28
10.16 \
\ \ ( )
10.17 ] \
/:/:

10.6 -
- 6.43 (4.60
) - - -] 5.46
(5.35 )
10.7 ], , ]
10.7.1 ] :
( )
20 ] ]
15929 (11292)
] 20 ]
]
12.87 (10.67)
10.7.2
( )
20
17673.68 (15524)
20
17.64 (18.33)
10.7.3 ]
( )
20 / ] 17727.88 (15559)
/ ]
20 /
]
16.84 (16.27)
10.7.4. ]
\\ \ ]
( )
1021.11
10.8 -
.

2.47%
( , )
4.61%
3.59%

1.88%
1
2
3
4
10.9
1 , 2012
] ( )
-] ()
:(i)
(ii) (
)
(iii)
-] ()
31 \, 2013 (-)
( )

1798.01
2741.67
4539.68
148.28
342.66
334.25
825.19
3714.49
176
10.10 Overseas Assets, NPAs and Revenue
@ Specific provisions held including provisions for

diminution in fair value of the restructured accounts
classified as NPAs plus technical/prudential write off.
Particulars
The Bank has received ` 6.43 crore (` 4.60 crore) as fee

from Bancassurance - Life and ` 5.46 crore (`5.35 crore)
as fee from Bancassurance Non Life.
10.7 Concentration of Deposits, Advances,
Exposures and NPAs
10.7.1 Concentration of Deposits:
Total Deposits of twenty largest depositors
10.7.2 Concentration of Advances
Name of the SPV sponsored

Domestic
Nil
(` in crore)
10.13. Provision for Income Tax has been made on the basis of the
applicable laws and various judicial pronouncements available. In
view of judicial pronouncements in similar cases, no additional
provision is considered necessary towards disputed tax demands of
` 656.65 crore (` 573.56 crore) upto assessment year 2010-11 for
which assessments are completed/appealed. Amounts paid by the
bank/adjusted by the department on account of the said disputed tax
demands has been included in tax paid in advance/tax deducted at
source (item III of Schedule 11 - Other Assets)
17673.68 (15524)
Percentage of Advances to twenty largest borrowers

to Total Advances of the bank
10.7.3 Concentration of Exposures
17.64 (18.33)
(` in crore)
Total exposure to twenty largest borrowers/customers 17727.88 (15559)

Percentage of exposures to twenty largest borrowers/
customers to total exposure of the bank on borrowers/
customers
10.7.4. Concentration of NPAs

Total Exposure to top four NPA accounts
10.14 The Bank has been claiming deduction under Section 36(1)(viii) of
the Income tax Act, 1961 in respect of the profits derived out of eligible
business as specified in the said section and has accordingly a
transferred a sum of `310 crore to the corresponding Special
Reserve account maintained under the said section and the same is
shown under Item V of Schedule -2 Reserves and Surplus.
16.84 (16.27)
(` in crore)
1021.11
10.15 1437 individual housing loan accounts securitized during the year
2003-04 amounting to `50.36 crore and were transferred to a Special
Purpose Vehicle (SPV) Trust pursuant to the Deed of Assignment
executed with National Housing Bank (NHB).The NHB has issued
Pass Through Certificates (PTCs) of said amount, out of which part
was subscribed by various Banks/Financial Institutions as PTC ClassA investments and the balance was subscribed by the bank as PTC
Class-B. The value of PTC-A series was fully relinquished on
01.12.2012 and hence stood NIL as on 31.03.2013 (`1.15 crores as
on 31.03.2012). Further, PTC Class-B investment with a book value of
`0.99 crores has been shown as a part of investments by the bank as
on 31.03.2013 (`2.02 crores as on 31.03.2012).
10.8 Sector-wise NPAs

Sl.
No.
1
2
3
4
Sector
Percentage of NPAs
to Total Advances in
that sector (%)
Agriculture & allied activities

Industry (Micro & Small, Medium and Large)
Services
Personal Loans
10.9 Movement of NPAs

Particulars
2.47
4.61
3.59
1.88
The present outstanding balance of the pool as on 31.03.2013 is

`3.92 crore - 225 accounts (`5.24 crore - 332 accounts as on
31.03.2012).
(` in crore)
Amount
Gross NPAs as on 1st April ,2012
1798.01
Additions (Fresh NPAs) during the year
2741.67
Sub-total (A)
4539.68
The Bank is acting as Service Provider to the SPV Trust. An amount of

`0.68 crore (`0.68 crore as on 31.03.2012) has been provided by the
bank as cash collateral in addition to Investment in PTC- B as credit
enhancement, was withdrawn, since the PTC A series was fully
relinquished.An amount of `1.28 crores is held as special provision to
meet any loss due to non recovery of securitized housing loans.
10.16 Credit Default Swaps:
Bank has not entered into Credit Default Swaps during the current
Financial Year (previous year NIL).
10.17 Previous year figures have been regrouped / reclassified
/rearranged wherever necessary to conform to current year's figures.
Figures in the brackets indicate figures of previous year.
Less:(i) Up gradations
148.28
(ii) Recoveries (excluding recoveries made from

upgraded accounts)
342.66
(iii) Write-offs
334.25
Sub-total (B)
825.19
Gross NPAs as on 31st March , 2013 (A-B)
Overseas
Nil
10.12 Reconciliation of Inter Branch and Inter Bank transactions have

been done up to 31st March 2013.
12.87 (10.67)
(` in crore)
Total Advances to twenty largest borrowers
Nil
Nil
Nil
10.11Off-balance Sheet SPVs sponsored (which are

required to be consolidated as per accounting norms):
15929 (11292)
Percentage of Deposits of twenty largest depositors

to Total Deposits of the bank
Amount
Total Assets
Total NPAs
Total Revenue
10.6 Bancassurance business
(` in crore)
3714.49
177
31 \, 2013
(` ] )

/
\

]
] - ]

\ \
\ ]
] / ()
/ ()
) /
) /
) /
/ ()
\ ]

\ ()

\ () /
()

]
( )
()
/ ()+()+ ( )
]

- 002413

-004453
(. )
^ (..018883)

-310100
(] )
^ (..019423)

02.05.2013
(. . )
^ (..211639)

-108959
( )
^ (..45239)
178
31.03.2013

31.03.2012

8645,58,77
6789,59,46
(1855,99,31)
10458,95,07
8645,58,77
(1813,36,30)
1771,07,32
83,62,41
279,21,40
47,87
2133,43,26
1824,27,15
93,89,82
279,21,52
1,04,07
2196,34,42
17944,36,28
2878,78,16
(8003,49,27)
(15150,32,36)
26,78,42
(1,02,34)
(171,47,85)
(963,52,99)
(1135,00,84)
13694,93,65
600,81,65
(5424,90,48)
(11918,70,92)
41,41,84
493,03,00
(317,06,84)
(781,47,20)
(1098,54,04)
(84,07,37)
(84,07,37)
(77,91,04)
(77,91,04)
(279,21,40)
(357,69,70)
(636,91,10)
(1855,99,31)
(279,21,52)
(357,69,70)
(636,91,22)
(1813,36,30)

-004137
(.)
^ (.. 205869)

-312063
( )
^ (..050531)
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
(` in '000)
Particulars
Opening balance of Cash and Cash equivalents
Closing balance of Cash and Cash equivalents
Net Increase(+) / Decrease (-) of Cash and Cash equivalents during the period
Cash Flow from Operating Activities
Net Profit before tax
Add: Depreciation on Assets
Add: Interest on Subordinated Debt
Less: Profit on Sale of Assets
Operating Profit before changes in Operating Assets and Liabilities
Adjustment for Changes in Operating Assets and Liabilities
Increase / (Decrease) in Deposits
Increase / (Decrease) in Borrowings
(Increase) / Decrease in Investments
(Increase) / Decrease in Advances
(Increase) / Decrease in Other Assets
Increase / (Decrease) in Other Liabilities and Provisions
Cash Generated from Operations
Taxes Paid
Cash Flow from Operating Activities (A)
Cash Flow from Investing Activities
(Purchase) / Sale of Fixed assets
Cash Flow from Investing Activities (B)
Cash Flow from Financing Activities
Interest paid on Subordinated debts
Dividend paid (including tax on dividend)
Cash Flow from Financing Activities (c)
Net Increase (+) / Decrease (-) in Cash flow during the period (A)+(B)+(C )
For the year

ended
31.03.2013
8645,58,77
6789,59,46
(1855,99,31)
For the year

ended
31.03.2012
10458,95,07
8645,58,77
(1813,36,30)
1771,07,32
83,62,41
279,21,40
47,87
2133,43,26
1824,27,15
93,89,82
279,21,52
1,04,07
2196,34,42
17944,36,28
2878,78,16
(8003,49,27)
(15150,32,36)
26,78,42
(1,02,34)
(171,47,85)
(963,52,99)
(1135,00,84)
13694,93,65
600,81,65
(5424,90,48)
(11918,70,92)
41,41,84
493,03,00
(317,06,84)
(781,47,20)
(1098,54,04)
(84,07,37)
(84,07,37)
(77,91,04)
(77,91,04)
(279,21,40)
(357,69,70)
(636,91,10)
(1855,99,31)
(279,21,52)
(357,69,70)
(636,91,22)
(1813,36,30)
B.A.PRABHAKAR
FRN:002413S
FRN:004453S
FRN:004137S
(R.R.DAKSHINAMURTHY)
(R.PRAKASH)
FOR PATRO & CO

FRN:310100E
FOR C R SAGDEO & CO

FRN:108959W

FRN:312063E
(RAJENDRA PATRO)
(SUMAN BOSE)
(INDRANATH NAG)
Place : Hyderabad
Date : 02.05.2013
179

\ \
\

5. ] ,
\
6. , ] ,
]
(i) , \
\
31 \ 2013
]
(ii)

, ;
(iii)
\

7. , 1949
\
8. 1 5
( ) , 1980

\
(i) \ ]
]
]
(ii)
(iii)

09. ,

,

1. 31 \ 2013
31 \ 2013

\
, 20
808
] ,
\ { ]
1039 , ]
,
8.70 %, ] 22.82%, ]
8.11% ] 20.92% -

2. , 1949
] ,

\,

3.
]

\ ]

4.
]\
\

] ]
]

- 002413
(. )
^ (..018883)

-310100
(] )
^ (..019423)
:
: 02.05.2013

- 004453
(. . )
^ (..211639)

-108959
( )
^ (..045239)
180

- 004137
(.)
^ (..205869)

-312063
( )
^ (..050531)
presentation of the financial statements in order to design

a u d i t p r o c e d u r e s th a t a r e a p p r o p r i a te i n th e
circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by
management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
6. In our opinion, as shown by books of the Bank, and to the
best of our information and according to the explanations
given to us:
(I) the Balance Sheet, read with the notes thereon is a
full and fair Balance Sheet containing all the
necessary particulars, is properly drawn up so as to
exhibit a true and fair view of state of affairs of the
Bank as at 31st March, 2013 in conformity with
accounting principles generally accepted in India;
(ii) the Profit and Loss Account, read with the notes
thereon shows a true balance of Profit, in conformity
with accounting principles generally accepted in India,
for the year covered by the account; and
(iii) the Cash Flow Statement gives a true and fair view of
the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. The Balance Sheet and the Profit and Loss Account have
been drawn up in Forms A and B respectively of the
Third Schedule to the Banking Regulation Act, 1949.
8. Subject to the limitations of the audit indicated in
paragraph 1 to 5 above and as required by the Banking
Companies (Acquisition and Transfer of Undertakings)
Act, 1980, and subject also to the limitations of disclosure
required therein, we report that:
(a) We have obtained all the information and explanations
which to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found
them to be satisfactory.
(b) The transactions of the Bank, which have come to our
notice have been within the powers of the Bank.
(c) The returns received from the offices and branches of the Bank
have been found adequate for the purposes of our audit.
9. In our opinion, the Balance Sheet, Profit and Loss
Account and Cash Flow Statement comply with the
applicable accounting standards.
INDEPENDENT AUDITORS REPORT

To
The President of India
Report on the Financial Statements
1. We have audited the accompanying financial statements of
Andhra Bank as at 31st March, 2013 which comprise the
Balance Sheet as at 31st March, 2013 and Profit and Loss
Account and the Cash Flow Statement for the year then
ended, and a summary of significant accounting policies
and other explanatory information. Incorporated in these
financial statements are the returns of 20 branches audited
by us and 808 branches audited by Branch Auditors. The
branches audited by us and those audited by other auditors
have been selected by the Bank in accordance with the
guidelines issued to the Bank by the Reserve Bank of India.
Also incorporated in the Balance Sheet and Profit and Loss
Account are the returns from 1039 branches which have
not been subjected to audit. These unaudited branches
account for 8.70 per cent of advances, 22.82 per cent of
deposits, 8.11 per cent of interest income and 20.92 per
cent of interest expenses.
Managements Responsibility for the Financial
Statements
2. Management is responsible for the preparation of these
financial statements in accordance with the Banking
Regulation Act, 1949. This responsibility includes the
design, implementation and maintenance of internal
controls relevant to the preparation of the financial
statements that are free from material misstatement,
whether due to fraud or error.
Auditors Responsibility
3. Our responsibility is to express an opinion on these
financial statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India.
Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
financial statements. The procedures selected depend
on the auditors judgement, including the assessment of
the risks of material misstatement of the financial
statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal
controls relevant to the Banks preparation and fair
For NATARAJA IYER & CO
FRN-002413S
(U. Yagneswara Sarma)
Partner (M.No. 018883)
For PATRO & CO
FRN-310100E
(Rajendra Patro)
Partner (M. No. 019423)
Place: Hyderabad
Date: 02.05.2013
For UMAMAHESWARA RAO & CO

FRN-004453S
(R.R. Dakshinamurthy)
For R.SUBRAMANIAN AND COMPANY

FRN-004137S
(R. Prakash)
Partner (M. No. 205869 )
For C.R.SAGDEO & CO

FRN-108959W
(Suman Bose)
For NAG & ASSOCIATES

FRN- 312063E
(Indranath Nag )
181
- {
(` )
/
1969 *
1980 **
\-10
\-11
\-12
\-13
155
627
1557
1632
1712
1867
155
754
2502
2676
2821
3125
2163
7585
14292
14098
15099
16523
0.06
1046
1267
1345
1289
52
666
77688
92156
105851
123796
35
356
56114
71435
83642
98373
16
170
20906
24210
29656
37795
0.5
485
560
560
560
0.4
4.9
3925
5933
6920
7882
58
708
90342
108901
124964
146299
128
19012
23082
27027
35132
#
$ -
*
**
182
OUR PROGRESS AT A GLANCE

(` in crore)
Year / Parameters
1969 *
1980 **
Mar-10
Mar-11
Mar-12
Mar-13
No of Branches
155
627
1557
1632
1712
1867
No of Business Delivery Channels
155
754
2502
2676
2821
3125
Staff Strength
2163
7585
14292
14098
15099
16523
Net Prot
0.06
1046
1267
1345
1289
Total Deposits
52
666
77688
92156
105851
123796
Net Advances #
35
356
56114
71435
83642
98373
Investments $
16
170
20906
24210
29656
37795
Capital
0.5
485
560
560
560
Reserves & Surplus
0.4
4.9
3925
5933
6920
7882
Working Funds
58
708
90342
108901
124964
146299
128
19012
23082
27027
35132
Priority Sector Advances
# Net of Provisions
$ Pre Depreciation
* Year of Nationalisation of Banks
** Year of Nationalisation of Andhra Bank
183
-
\
2013
(%)
2012
(%)
]
1.
] ] ()
( - 9%)
11.76
13.18
2.
4.02
5.10
3.
29.47
10.69

1.
87.62
90.21
2.
2.45
0.91
3.
19.33
32.48
4.
96.29
97.88
5.
1.65
0.60

1.
80.94
80.07
2.
17.07
14.75
3.
( )
1222.40
1153.88
4.
\ ( )
7.80
8.91
1.
-]
7.50
7.05
2.
0.99
1.19
3.
] ]
3.21
3.67
4.
42.40
39.06
5.
] - +
26.79
24.89
6.
12.02
12.45
7.
7.97
7.83
8.
2.12
2.49
\
1.
22.54
21.39
2.
0.43
0.38
3.
25.72
23.71
184
KEY PERFORMANCE RATIOS

March 2013
(%)
March 2012
(%)
Capital Adequacy
1.
|
Capital to Risk Assets Ratio (CRAR)

(prescribed norm by RBI: 9%)
11.76
13.18
2.
Coverage Ratio
4.02
5.10
3.
Net NPAs to Net Worth
29.47
10.69
Asset Quality
1.
Govt. Securities to Total Investments
87.62
90.21
2.
Net NPAs to Net Advances
2.45
0.91
3.
Off Balance Sheet Items to Total Assets
19.33
32.48
4.
Standard Advances to Total Advances
96.29
97.88
5.
Net NPAs to Total Assets
1.65
0.60
Management Quality
1.
Gross Bank Credit to Aggregate Deposit
80.94
80.07
2.
Growth in Total Assets
17.07
14.75
3.
Average Productivity (Rs Lakhs)
1222.40
1153.88
4.
Prot per Employee (Rs Lakhs)
7.80
8.91
Earnings
1.
Non Interest Income to Total Income
7.50
7.05
2.
Return on Assets
0.99
1.19
3.
Net Interest Margin
3.21
3.67
4.
Ratio of Cost to Income
42.40
39.06
5.
Staff Cost to Net Interest Income + Other Income
26.79
24.89
6.
Average Yield on Advances
12.02
12.45
7.
Average Yield on Coupon Based Investments
7.97
7.83
8.
Operating Prot to Average Working Funds
2.12
2.49
Liquidity
1.
Govt. Securities to Total Assets
22.54
21.39
2.
Cash to Total Assets
0.43
0.38
3.
Total Investments to Total Assets
25.72
23.71
185

31.03.2013 -
(- { 1 $= 54.3893 $ l)
]
( $ )
]

]
559.58
7881.60
123795.58
11119.34
2942.84
146298.94
102.88
1449.11
22761.02
2044.40
541.07
26898.48

-\
6022.13
767.46
37632.40
98373.30
303.48
3200.17
146298.94
1107.23
141.10
6919.08
18086.88
55.80
588.38
26898.48
28276.90
4328.67
5198.98
795.87
31.03.2013
12909.69
1047.42
13957.11
2373.57
192.58
2566.15
\ ]
\

9152.67
2037.21
1478.10
12667.98
1682.81
374.56
271.76
2329.13
322.28
11.38
319.20
310.00
279.79
47.55
98.00
59.25
2.09
58.69
57.00
51.44
8.74
18.02
]

]
]

- ]
186
ABRIDGED FINANCIAL STATEMENT OF ANDHRA BANK IN FOREIGN CURRENCY

BALANCE SHEET AS ON 31.03.2013
(Amount in Indian Rupee converted into US$ at RBI Reference Rate for two currencies applicable as on the date of Balance
Sheet i.e. 1 US$ = Rs 54.3893)
CAPITAL AND LIABILITIES
(Indian Rupees in Crore)
Capital
559.58
Reserves and Surplus
(US$ in million)
102.88
7881.60
1449.11
123795.58
22761.02
11119.34
2044.40
2942.84
541.07
146298.94
26898.48
6022.13
1107.23
767.46
141.10
Investments
37632.40
6919.08
Advances
Deposits
Borrowings
Other Liabilities & Provisions
Total
ASSETS
Cash and Balances with RBI
Balances with banks and Money at Call and Short Notice
98373.30
18086.88
Fixed Assets
303.48
55.80
Other Assets
3200.17
588.38
146298.94
26898.48
28276.90
5198.98
4328.67
795.87
12909.69
2373.57
1047.42
192.58
13957.11
2566.15
Interest Expended
9152.67
1682.81
Operating Expenses
2037.21
374.56
Provisions & Contingencies
1478.10
271.76
12667.98
2329.13
322.28
59.25
Total
Contingent Liabilities
Bills for collection
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2013
INCOME
Interest Earned
Other Income
Total
EXPENDITURE
Total
APPROPRIATIONS
Transfer to Capital Reserve
11.38
2.09
Transfer to Revenue & Other Reserves
319.20
58.69
310.00
57.00
Proposed Dividend
279.79
51.44
Tax on Dividend
47.55
8.74
Balance carried over to Balance Sheet
98.00
18.02
187
- ] CLASSIFICATION OF BRANCHES - POPULATION GROUP WISE

/]/
Region/
State/ U.T.
Northern Region
Haryana
\ Himachal Pradesh
] Punjab
] Rajasthan
\[ ( ) Chandigargh (UT)
New Delhi
] Jammu & Kashmir
\, 2012 2012-13

Branches as at the
end of March 2012
Branches opened
during 2012-13
Rural
SemiUrban
Metro
41
20
48
1
8
9
3
3
3
Branches as at the
end of March 2013
104
26
1
19
14
3
40
1
21
4
14
2
10
6
7
5
7
5
1
1
2
2
1
1
1
1
7
5
1
1
9
7
1
1
Eastern Region
Bihar
^ Jharkhand
Odisha
Sikkim
\ West Bengal
172(1)
13(1)
10
116
1
32
16
3
2
9
54
2
60
10
7
29
17
1
57
3
5
46
1
2
14
16
188
16
12
125
1
34
Central Region
[ Chattisgarh
Madhya Pradesh
Uttar Pradesh
Uttarakhand
71
14
14
37
6
26
16
2
1
9
4
57
12
9
33
3
19
8
4
1
3
41
44(1)
13
28
8
36(1)
North Eastern Region

Assam
Meghalaya
Tripura
\ Western Region
Goa
] Gujarat
Maharashtra
( ) Dadra Nagar Haveli (UT)
22
7
1
11
3
Urban
\, 2013

41
1
91(1)
4
20
66(1)
1
50
3
22
1
2
2
Southern Region
Andhra Pradesh
Karnataka
Kerala
Tamilnadu
\ ( ) Puducherry (UT)
1267(13)
1093(13)
65
24
82
3
86
67
10
Total
1712(15)
155
1
1
7
12
125
30
1
29
20
3
41
1
97
14
17
59
7
95(1)
4
22
68(1)
1
448(1) 424(1)
429(1) 380(1)
4
10
13
15
19
2
317(9) 164(1)
261(9) 90(1)
19
42
11
25
32
1
1353(12)
1160(12)
75
24
91
3
524(1) 528(1)
523(9) 292(2)
1867(13)
- - 2 ] 2012-13
Note: Figures in brackets indicate Extension Counters. 2 Extension Counters converted as full fledged branches during the year 2012-13
188
/ Andhra Bank Financial Services Ltd.

FINANCIAL STATEMENTS OF SUBSIDIARY

Andhra Bank Financial Services Ltd.
189

31.03.2013
31.03.2013
.
`
I
1
() ]
()
()
2
3 \
()
() ()
()
()
4 \
()
()
() \
(()
II
1 \
() \
(i)

(ii)
(iii) ]
(iv)
() \
() ()
()
() -\
2 \
() \
() \
()
()
()
(\) \
3
4
5,00,00,000
-11,76,14,589
5
6
31.03.2012
0
9,30,547
0
0
-6,76,14,589
0
0
0
5,00,00,000
-12,68,58,521
-7,68,58,521
0
0
0
0
0
0
0
0
36,07,36,930
0
36,07,36,930
9,30,547
29,40,52,888
0
9,24,532
0
0
9,24,532
28,48,02,941
7
31,81,953
31,81,857
0
0
0
0
0
11
96
31,81,953
31,81,171
0
0
0
0
0
10,37,50,608
8
9
10
2
/

] .

0075275
( \\ )
\
. . 05812

20.04.2013
2,83,981
0
19,00,18,203
0
0
782
10,34,93,470
19,03,02,184
29,40,52,888
3,39,309
0
18,09,69,380
0
0
18,13,08,689
28,48,02,941
190

Balance Sheet as at 31.03.2013
Particulars
I EQUITY AND LIABILITIES :
1 Shareholders' Funds
(a) Share Capital
(b) Reserves and Surplus
(c) Money Received against
Share Warrants
2 Share Application Money
Pending allotment
3 Non Current Liabilities
(a) Long Term Borrowings
(b) Deferred Tax Liabilities (Net)
(c) Other Long Term Liabilities
(d ) Long Term Provisions
4 Current Liabilities
(a) Short Term Borrowings
(b) Trade Payables
(c) Other Current Liabilities
(d) Short Term Provisions
Note
No
3
4
As at
31st March, 2013
`
`
5,00,00,000
-11,76,14,589
5
6
0
9,30,547
0
0
TOTAL
II ASSETS :
1 Non-current assets
(a) Fixed assets
(i) Tangible assets
Gross Block
Less : Depreciation
Net Block
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets
under development
(b) Non -current investments
(c ) Deferred tax assets (Net)
(d) Long term loans and
advances
(e) Other non current assets
2 Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and Cash Equivalents
(e) Short term loans and advances
(f) Other current assets
As at
31st March, 2012
`
`
-6,76,14,589
5,00,00,000
-12,68,58,521
-7,68,58,521
0
0
0
0
0
36,07,36,930
0
0
0
0
0
36,07,36,930
9,30,547
29,40,52,888
0
9,24,532
0
0
9,24,532
28,48,02,941
7
31,81,953
31,81,857
31,81,953
31,81,171
96
0
0
0
0
0
0
0
0
11
8
9
10
10,37,50,608
10,34,93,470
0
2,83,981
0
19,00,18,203
0
0
0
3,39,309
0
18,09,69,380
0
0
TOTAL
19,03,02,184
29,40,52,888
SIGNIFICANT ACCOUNTING POLICIES 2

The Notes referred to above form an integral part of the Balance Sheet I to 21
As per our report attached
For Satyanarayana Raju &Co
Chartered Accountant
K K Misra
R Athmaram
Y Prameela Rani
FRN : 0075275
Chairman
Director
Director
(A PURNACHANDRA RAO)
PARTNER
Membership No:05812
T V S Chandrasekhar
PLACE : Hyderabad
Director
DATE : 20.04.2013
782
0
0
K V Kannan
Director
191
18,13,08,689
28,48,02,941
B Narendranatha Reddy
Director
K Koteswara Rao
Managing Director
Y Amarnath
Company Secretary

31.03.2012
31 \, 2013
`
\ ]
]
14
II
14
III ] (I+II)
IV

, \
-\
\
15

16

7
- ,
, 17

V

VI
VII
( V - VI )
VIII
14
IX ( VII - VIII )
X
18
(1) \
(2)
(3)
/ , ]
,
XI \
()
XII \ / ()
XIII \
XIV \ / ()
( \) (XII- XIII)
XV () (XI+XIV)
]
19
(1)
(2)
2
/

] .

0075275
( \\ )
\
. . 05812

20.04.2013
31 \, 2012
1,61,40,193
-46,328
1,60,93,865
1,47,46,009
36,488
1,47,82,497
0
0
0
0
0
9,27,497
46,644
686
0
9,64,989
1,46,065
718
35,65,224
45,40,051
11,31,967
22,43,739
1,15,53,814
0
1,25,38,758
0
1,15,53,814
0
1,15,53,814
1,25,38,758
4,90,00,000
6,15,38,758
23,09,882
0
1,23,10,713
0
23,09,882
56,386
1,23,67,099
92,43,932
0
0
4,91,71,659
0
0
0
92,43,932
0
4,91,71,659XVI
1.85
1.85
9.83
9.83
192

Profit and Loss Statement for the year ended 31.03.2013
Particulars
Note
No
Year ended 31st March 2013

`
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
Revenue from operations

Interest income :
Other income : (Loss)
Total Revenue ( I + II )
Expenses :
Cost of material consumed
Purchase of stock - in - trade
Changes in inventories of finished
goods work-in-progress and
stock-in- Trade
Employee Benefits expenses
Administrative and other Expenses
Depreciation and amortization
expenses
Other Expenses-Rent, Legal &
Prof Fee , Audit fee etc,.
Total expenses
Profit before exceptional and
extraordinary items and tax
Exceptional Items
Profit before extraordinary items
and tax (V - VI)
Extraordinary Items
Profit before Tax ( VII + VIII )
Tax Expense
(1) Current tax (2) Deferred tax
(3) Income Tax for earlier
Asst Years/Provision no longer
required written back
Profit (Loss) for the period from
continuing operations
Profit/( Loss ) from discontinuing
Operations
Tax expense of discontinuing
operations
Profit/ (Loss ) from discontinuing
operations (after tax) (XII - XIII)
Profit (Loss) for the period
(XI + XIV)
Earnings per equity share :
(1) Basic
(2) Diluted
Year ended 31st March 2012
14
14
15
16
7
17
14
1,61,40,193
-46,328
1,60,93,865
1,47,46,009
36,488
1,47,82,497
0
0
0
0
0
9,27,497
46,644
0
9,64,989
1,46,065
686
718
35,65,224
45,40,051
11,31,967
22,43,739
1,15,53,814
0
1,25,38,758
0
1,15,53,814
0
1,15,53,814
1,25,38,758
4,90,00,000
6,15,38,758
18
23,09,882
0
0
1,23,10,713
0
23,09,882
56,386
1,23,67,099
92,43,932
4,91,71,659
92,43,932
4,91,71,659
1.85
1.85
9.83
9.83
19
SIGNIFICANT ACCOUNTING POLICIES 2

The Notes referred to above form an integral part of the Profit and loss Statement 1 to 21
K K Misra
R Athmaram
Y Prameela Rani
FRN : 0075275
Chairman
Director
Director
PARTNER
Membership No:05812
T V S Chandrasekhar
PLACE : Hyderabad
Director
DATE : 20.04.2013
K V Kannan
Director
193
Director
K Koteswara Rao
Managing Director
Y Amarnath
Company Secretary

31 \, 2013
\
-
] :

]
31 \, 2013
`
31 \, 2012
`
1,15,53,814
6,15,38,758
686
718
-55,328
0
0
0
27,452
0
0
0
0
0
6,015
0
1,00,000
0
]

/ ()
\

\ ]
- \
(` 9,53,000 +16,14,020 = ` 25,67,020)
\

\
\
\
/()

-
] ]
\

/()
/()

1,16,15,843
6,14,12,024
25,67,020
90,48,823
1,21,89,379
4,92,22,645
0
0
0
0
0
0
0
90,48,823
0
0
0
0
0
4,92,22,645
0
0
0
0
90,48,823
4,92,22,645
18,09,69,380
13,17,46,735
19,00,18,203
90,48,823
18,09,69,380
4,92,22,645
:1. { ( ) , 2006 3
2.
3. ] ,

1 21

] .

0075275
( \\ )

\

. . 05812

20.04.2013
194

Cash Flow Statement for the Year ended 31 March, 2013
31.03.2013
Particulars
Net cash inflow from operating activities

Profit Before Tax
Adjustments :
Depreciation
Cash flow from investment business - change in
the value of stocks
Interest received
Interest paid
Dividend paid
Net cash inflow/ (outflow) from returns on
investments and servicing of finance
Increase in Debtors
Increase in Creditors
Cash Generated from operations
Direct Taxes paid net of refunds,if any
(` 9,53,000 +16,14,020 = ` 25,67,020)
Net Cash from Operating Activities
Cash flow from Investing activities :
Payments to acquire intangible fixed assets
Payments to acquire tangible fixed assets
Receipts from sales of tangible fixed assets
Net cash inflow/ (outflow) from investing activities
Net cash inflow before financing
Financing
Issue of ordinary capital
Repurchase of debenture loan
Expenses paid in connection with share issues
Net cash inflow/ (outflow) from financing
Increase/ (Decrease) in cash and cash equivalents
Cash and Cash Equivalents as at beginning of the year
Cash and Cash Equivalent as at the end of the year
31.03.2012
`
1,15,53,814
6,15,38,758
686
718
-55,328
0
0
0
27,452
0
0
0
0
0
6,015
0
1,00,000
0
1,16,15,843
6,14,12,024
25,67,020
90,48,823
1,21,89,379
4,92,22,645
0
0
0
0
0
0
0
90,48,823
0
4,92,22,645
0
0
0
0
0
0
0
0
90,48,823
18,09,69,380
19,00,18,203
90,48,823
4,92,22,645
13,17,46,735
18,09,69,380
4,92,22,645
NOTES : 1. Cash Flow statement has been prepared under the Indirect Method as set out in the Accounting Standard No 3 "
Cash Flow Statement " as per Companies ( Accounting Standard ) Rules, 2006.
2. Cash and Cash equivalent represent cash and bank balances.
3. Previous year's figures have been regrouped/reclassified wherever applicable.
The Notes referred to above form an
integral part of the financial statements
1 to 21
FRN : 0075275
PARTNER
Membership No:05812
K K Misra
Chairman
T V S Chandrasekhar
Director
R Athmaram
Director
K V Kannan
Director
PLACE : Hyderabad
DATE : 20.04.2013
195
Y Prameela Rani
Director
Director
K Koteswara Rao
Managing Director
Y Amarnath
Company Secretary

1 -
{ , 2006 ( )
{ , 1956
(])
\
, , ]
\ ,
]
]
,
\ , ]
\ ,
\
/ , ]

2
.
()
] .
,
].
. -
.

] .
. ]
(1) ]
] ,
].
1. ] .
2. ] .
3. ] .
196
(2) ]
] ]
, ,
].
.
]
, ]
.
.
] ] ,
] ,

` 1/- ] .
\. \
\
] .
].
1.
1956 \ XIV

] .
2.
1956 \ XIV

95% ]

]
] .

\
\ ] ,
]
] .

NOTE No : 1 : - BASIS OF PREPARATION
The Company maintains its accounts on accrual basis
following the historical cost convention in accordance with
generally accepted accounting principles (GAAP) and in
compliance with provisions of the Companies Act, 1956 and
the Accounting Standards as specified in the Companies
(Accounting Standard) Rules, 2006 prescribed by the
Central Government. However, certain escalation and other
claims, which are not ascertainable or acknowledged by
customers, are not taken into account.
The preparation of financial statements in conformity with
GAAP requires that the management of the Company makes
estimates and assumptions that affect the reported amounts
of income and expenses of the period, the reported balances
of assets and liabilities and the disclosures relating to
contingent liabilities as of the date of the financial
statements. Examples of such estimates include useful life of
tangible and intangible fixed assets, provision for doubtful
debts / advances, future obligations in respect of retirement
benefit plans etc. Actual results could differ from these
estimates.
NOTE No : 2 : SIGNIFICANT ACCOUNTING POLICIES
A. LEASE FINANCE:
The Company (ABFSL) recognizes lease rentals in the
year in which it has fallen due. The lease processing
charges, management fee and other service charges
considered as income on execution of agreements.
B. HIRE PURCHASE: NIL
C. INVESTMENT BUSINESS:
Purchase and Sale of securities are accounted on
execution of contracts.
D. INTEREST:
[1] Interest and other dues are not recognised until
received on the grounds of prudence in respect of debts
and claims.
1. Where suits have been filed.
2. Where accounts are considered doubtful.
3. Where parties are facing prolonged financial difficulties.
[2] Interest on Investments
Interest on securities and dividend on share are not

recognised until the claims and counter claims if any,
pending on such securities are cleared.
Dividend Income on Shares is recognised when the

owners right to receive payment is established.
Revenue is not recognised on the grounds of prudence,

until resolved in respect of consolidation damages,
penalties, delayed payment charges as recovery of the
amounts is not certain.
E. STOCK IN TRADE:

Stock of shares and securities are valued at cost or market

value whichever is lower. In case of unquoted shares the
valuation is made at ` 1/- with a view to have control and
accountability and also as per the standards suggested by
ICAI.
F. FIXED ASSETS:

All fixed assets including assets given on lease are valued

at cost.
G. DEPRECIATION:
1. Assets for own use.
Depreciation is provided on straight-line method on pro

rata basis in accordance with rates prescribed under
Schedule XIV of the Companies Act, 1956.
2. Assets leased out.
Depreciation is provided on straight line method on pro

rata basis in accordance with rates prescribed under
Schedule XIV of the Companies Act, 1956 or writing off at
95% of the cost of the asset over the primary lease period
in proportion of lease rentals earned during the year to
total rentals for the entire primary lease period, whichever
is higher.
The machinery under lease to M/s. Incab Industries Ltd is

not put to use during this year also.
H. Miscellaneous Expenses to the extent not written off:

197
All expenditure the benefit of which is spread over a

number of years is grouped under this account and is
amortized over number of years on the basis of estimated
benefit derived in each such year.

. 3 ]

( : 100,00,000 ` 10 )
,
50,00,000 ` 10
( )
( : 50,00,000 ` 10 )
`
31 \ 2013
`

31 \ 2012
`
10,00,00,000
10,00,00,000

5,00,00,000

5,00,00,000

5,00,00,000
. ]

31 \ 2013

`

5,000,000
50,000,000

-
-

5,000,000
50,000,000
5,00,00,000
31 \ 2012

5,000,000
-
5,000,000
5,00,00,000
5,00,00,000
. /
` 10/- 31 2013 ,
( -)
. / / /
31 \ 2013

`

, /
50,00,000 ` 10
( : 50,00,000 ` 10 )
31 \ 2012
`

5,00,00,000
`
5,00,00,000
5,00,00,000
. 5%

.10
,

.
31 \ 2013

5,00,00,000
%
31 \ 2012

50,00,000
100.00%
5,000,000
100.00%
\. \
] ,
]

. /
,
].

I. ]

198

NOTES TO FINANCIAL STATEMENTS
NOTE No. : 3 : SHARE CAPITAL
Particulars
As at 31st March, 2013

`
`
Authorized
(Previous year: 1,00,00,000 Equity Shares
of `10 each)
Issued, Subscribed & Paid-up
50,00,000 Equity Shares of ` 10 each
fully paid up.
(All the shares are held by the Andhra Bank
and its nominees)
(Previous year: 50,00,000 Equity Shares
of ` 10 each)

`
`
10,00,00,000
10,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
a. Reconciliation of the Shares outstanding at the beginning and at the end of the reporting period:
Particulars
Equity Shares:
At the beginning of the period
Issued during the year as fully paid
Outstanding at the end of the period

`
No of Shares
5,00,00,000
5,00,00,000

No of Shares
`
5,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
b. Terms / Rights attached to Equity Shares

"The Company has only one class of equity shares having a par value of `10/- per share. Each holder of equity shares is entitled to
one vote per share. During the year ended 31st March 2013, no dividend is declared by Board of Directors. (Previous year - Nil)"
c. Shares held by Holding/Ultimate holding company and/or their subsidiaries/associates:
Particulars
`

`
Andhra Bank, Parent / holding Bank

50,00,000 equity shares of `10 each fully
paid up
(Previous year : 50,00,000 Equity Shares of
`10 each)

`
`
5,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
d. Details of Shareholders holding more than 5% shares in the company:

Particulars
No of Shares
%
Equity Shares of `10/- each fully paid
Andhra Bank, holding Company
50,00,000
100.00%
e. Shares reserved for issue under options
NIL

No of Shares
%
50,00,000
100.00%
NIL
f. Aggregate number of bonus shares issued,

shares issued for consideration other than cash
and shares brought back during the period of
five years immediately preceding the reporting
date:
NIL
NIL
g. Securities convertible into equity / preference

shares issued along with the earliest date of
conversion:
NIL
NIL
h. Calls unpaid:
NIL
NIL
I. Forfeited Shares
NIL
NIL
199

.4-
31.03.2013
`
/ ()

]

31.03.2012
`
(12,68,58,521)
92,43,932
(17,60,30,180)
4,91,71,659
(11,76,14,589)
(11,76,14,589)
(12,68,58,521)
(12,68,58,521)
. 5 \
31.03.2013
31.03.2012
`
36,07,36,930
`
36,07,36,930
36,07,36,930
36,07,36,930
, /
31.03.2013 , ] , 36.07
]
. 6 \ --
31.03.2013
`

1. ] .
2.
31.03.2012
`
`
0
8,80,412
50,135
9,30,547
9,30,547
`
0
8,80,412
44,120
9,24,532
9,24,532
i) 31.07.1995 \\ ` 5.50
24% ] 1.88

\\ 2 2001 ` 1.88
12% ] ] ` 366.02

\\ ] (309/01)
(328/01) ] \\ ()
` 80,351 ` 1.42 ] ]
21 ], 2010 309/01 () 328/01

, () 02.04.2001 12%
` 8,80,412/-

\\ 2010 () . 11659-11660
01.03.2011

, 05.04.2010 , 2010 \\ \ 2718 ] \\

] \\ ] (` 1.42 ) ]

200

NOTE NO 4 - RESERVES & SURPLUS
Particulars
Surplus/(deficit) in the Statement of Profit and Loss
Balance as per the last financial statement
Add: Profit for the year
Closing Balance
Total of Reserves and Surplus

`
`
(12,68,58,521)
92,43,932

`
`
(17,60,30,180)
4,91,71,659
(11,76,14,589)
(11,76,14,589)
(12,68,58,521)
(12,68,58,521)
Note No 5 : NON CURRENT LIABILITIES : LONG TERM PROVISIONS :

Particulars
Provision for Claims

`
`
36,07,36,930
36,07,36,930

`
`
36,07,36,930
36,07,36,930
The Company disputed the other claims made against the company in the Special Court, Mumbai and other Courts/Judicial
Authorities. However the directors have decided to continue the existing provision of ` 36.07 Crore made on contingent
liabilities and claims not acknowledged as debts on prudent basis for the financial year ending 31.03.2013.
Note No 6 : CURRENT LIABILITIES : TRADE PAYABLE :
Particulars
`
`
Due to Micro and Small Enterprises
0
Due to others :
i) A/c M/s Tamilnadu Newsprints & Papers Ltd
8,80,412
ii) Others
50,135
9,30,547
9,30,547

`
`
0
8,80,412
44,120
9,24,532
9,24,532
I) TNPL filed a suit in the High Court of Madras on 31.07.1995, for a sum of `5.50 Crore being the difference of interest
between the alleged return claimed and the actual return and further interest at 24% per annum on amount of `1.88
Crore from date of plaint till realization and for costs.
The Honble High Court passed the judgment on 2nd April 2001 and the suit was decreed for a sum of `366.02 lakhs
together with interest at 12% p.a. on the sum of `1.88 Crore from the date of judgment till realization and for costs.
TNPL, aggrieved by the disallowed portion of the interest, had preferred other side appeal (309/01) before Division
Bench of Madras High Court.
ABFSL, aggrieved by the decreeing of the Suit, preferred other side appeal (328/01), which was admitted by the
Division Bench of Madras High Court on depositing of `1.42 Crore and `80,351 being one third of the decretal amount
by the Company (ABFSL).
On 21st January 2010, the Learned Judges were pleased to dismiss the OSA 309/01 preferred by TNPL and were
pleased to partly allow OSA 328/01 preferred by our Company (ABFSL). As per the Judgment, the Company (ABFSL)
is liable to pay `8,80,412/- along with interest at 12% p.a. from 02.04.2001 to TNPL till the date of realization.
Aggrieved by the said order, TNPL filed SLP No 11659-11660 of 2010 before Hon'ble Supreme Court of India and
Leave was granted on 01.03.2011.The suit has not come up for regular hearing.
In the meantime, on 05.04.2010, ABFSL filed a petition No 2718 of 2010 in Madras High Court, with a request to refund
the money deposited earlier in the Madras High Court (`1.42 Crore) along with applicable interest, after adjusting the
money to be paid by the ABFSL to TNPL as per High Court order.
201

6 : \ --
29.02.2010 \\ \ \\ 21 ] 2010
08.10.2010

29.09.2010 \\ \\ ]
\\ ] 07.10.2010 ]
\\ \\ ` 2.51 ] ]
2010 \\ \ 2718 27.10.2010 ]
7: \ :
31.03.2013
`
()

\
() :

: \

31.03.2012
`
7,270
35,791
12,500
`
7,270
35,791
12,500
31,26,392
31,26,392
31,81,953
31,81,857
96
31,81,953
31,81,171
782
\ 31, 2012 1956 ( ) \ VI

: 7 : \ : \ :

:

\

:

+

01.04.2012

7,270
31.03.2013 01.04.2012 31.03.2013 31.03.2012

7,270
6,832
345
7,177
438
31.03.2013

93
35,791
35,791
35,449
341
35,790
342
12,500
12,500
12,499
12,499
55,561
55,561
54,780
686
55,466
781
95
31,26,392
31,26,392
31,26,391
31,26,391
31,81,953
31,81,953
31,81,171
686
31,81,857
782
96
31,81,953
31,81,953
31,80,453
718
31,81,171
1,500
782
i) \\ { 1992 ` 45.29
{ \
() () () \ ] ()
] \ ]
] \ ] ()
23.03.2013 \ ] ( , ] , ) \

] ] ]

ii) 31.03.2013 ` 1/- - , .
202

NOTE No : 6 : CURRENT LIABILITIES : TRADE PAYABLE,
contd..
The petition of ABFSL was considered by Madras High Court on 29.09.2010 and ordered the TNPL to pay the amount to
ABFSL before 08.10.2010 as per the High Court Judgment dt. 21st January 2010.
Aggrieved by the said order of Madras High Court dt. 29.09.2010, TNPL moved the matter in the Hon'ble Supreme Court of
India and after hearings the Court granted interim stay to TNPL on 07.10.2010 subject to depositing the amount payable to
ABFSL in Madras High Court.
The petition of ABFSL 2718 of 2010 at Madras High Court was closed on 27.10.2010, on depositing a sum of ` 2.51 Crore by
TNPL in Madras High Court as per the direction of Hon'ble Supreme Court of India.
Note No 7 : NON CURRENT ASSETS : TANGIBLE
`
`
(A) OWNED ASSETS :
Office Equipment
Furniture & Fittings
Computers
(B) ASSETS GIVEN ON LEASE :
Plant & Machinery
GROSS BLOCK
Less : Decreciation accumulated
Net Block

`
`
7,270
35,791
12,500
7,270
35,791
12,500
31,26,392
31,26,392
31,81,953
31,81,857
96
31,81,953
31,81,171
782
DEPRECIATION STATEMENT FOR THE YEAR ENDED MARCH 31, 2013

As per Schedule VI of the Companies Act 1956 (SLM)
NOTE : 7 : NON CURRENT ASSETS: FIXED ASSETS : TANGIBLE
Nature of Assets
Gross Block
Depreciation
Net Block
For
Total
Total
Balance Additions
Total
As on
As on
the
during Deletions
as on
up to
as on
up to
31.03.2012 31.03.2013
31.03.2013 01.04.2012 year 31.03.2013
01.04.2012 the year
A: Owned Assets
7,270
7,270
6,832
345
7,177
438
93
Furniture & Fittings
Office Equipment
35,791
35,791
35,449
341
35,790
342
Computers
12,500
12,500
12,499
12,499
Total Owned Assets
55,561
55,561
54,780
686
55,466
781
95
B: Assets given on Lease

Plant & Machinery
31,26,392
0 31,26,392 31,26,391
0 31,26,391
Total of A + B
31,81,953
0 31,81,953 31,81,171
686 31,81,857
782
96
Previous Year
31,81,953
0 31,81,953 31,80,453
718 31,81,171
1,500
782
(i) The suit filed against M/s. Incab Industries Ltd in Delhi High Court, for realization of lease rentals since October 1992
amounting to ` 45.29 lacs, is pending for appointment of the third arbitrator. In the mean time M/s Incab Industries Ltd.,
submitted a proposal before the Board for Industrial and Financial Reconstruction [BIFR]. The Company (ABFSL) filed a
petition before the Board [BIFR] who has permitted the Company (ABFSL) to take possession of the leased machinery with
Incab Industries Ltd. But the workers union is protesting to take the machinery with a plea that some interested parties are
negotiating for takeover of Incab Industries Ltd. The final Rehabilitation Scheme (DRS) submitted by M/s Tata Steel Ltd has
been circulated on 02.04.2013 by the operating Agency (State Bank of India, Stressed Asset Management Branch, Kolkata).
BIFR directed the Incab Industries Ltd to submit all the Audited Accounts along with Auditors's Reports thereon for the past period
i.e from the date of sickness to till date to Board for determination of the sickness and the measures to be taken under the Act for
the company's rehabilitation. In view of the above the Rehabilitation process is still under process before BIFR. As such the matter
is deferred for some more time.
(ii) As the carrying cost of the machinery is ` 1/- on 31.03.2013 and is much below the valued cost, there is no impairment
loss on the machinery.
203

: 8 : :
31.03.2013
31.03.2012
-
{ ]
88,525
1,43,853
\ -
1,95,456
2,83,981
1,95,456
3,39,309
\ \ 31.03.2013 /
31.03.2013 \/ \ ]
01.04.12

: \
( )
2,16,742
(2,16,742)
01.04.12
/
/
]
`
3,39,309
3,39,309
31.03.13
31.03.13
2,16,742 2,83,981
(2,16,742) 3,39,309
31.03.2013 \
: :
/

() )
]
( \)
\ ] ]
{ /
( )
] .
]

{
{ \ -

{
.

31.03.2013
{ {
31.03.2013 31.03.2013
`
{
,]
31.03.2013 `
3,000
5,000
5,000
11,400
3
3
6,600
20,300
3,300
50.00
28.75
150.00
56.25
40.00
100.00
37.50
1,50,000
1,43,750
7,50,000
6,41,250
0
0
2,64,000
20,30,000
1,23,750
1.00
1.00
1.00
1.00
--1.00
1.00
1.00
3,000
5,000
5,000
11,400
0
0
6,600
20,300
3,300
3,000
5,000
5,000
11,400
0
0
6,600
20,300
3,300
46,850
4,600
28.75
87.50
13,52,688
4,02,500
1.00
1.00
46,850
4,600
46,850
4,600
4,850
450
8,333
55,400
2,700
5,000
8,333
240
2,000
2,100
1,95,462
130.00
6,30,500
170.00
76,500
1.00
8,333
51.25
28,39,250
145.00
3,91,500
42.50
2,12,500
1.00
8,333
80.00
19,200
67.50
1,35,000
50.00
1,05,000
10 1,02,84,054
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
12
4,850
450
8,333
55,400
2,700
5,000
8,333
240
2,000
2,100
1,95,456
4,850
450
8,333
55,400
2,700
5,000
8,333
240
2,000
2,100
1,95,456
: , ] 31.03.2013

21,280

2,16,742
89.29
19,00,000
00 1,21,84,054
4.16
00
88,525
2,83,981
88,525
2,83,981
204

Note No : 8 : STOCK IN TRADE : STOCK OF SHARES & SECURITIES
`
`
Particulars
Aggregate amount of quoted share - Valued at Cost or Market
value whichever is less
Aggregate amount of unquoted shares - Valued at Rupee one
88,525
1,95,456

`
`
1,43,853
1,95,456
2,83,981
3,39,309
Seggregation between quoted and unquoted share is made on BSE / NSE Bulletin for the Business transacted on 31.03.2013.
Further the shares are classified as unquoted, if such shares are not traded during three months period before 31.03.2013.
Purchase/
Returns/
Deletions
Closing
Stock
Closing
Stock
31.03.13
Qty.
2,16,742
31.03.13
`
2,83,981
(2,16,742)
3,39,309
Opening
Stock
Opening
Stock
01.04.12
Qty.
2,16,742
01.04.12
`
3,39,309
(2,16,742)
3,39,309
Cost
`
Cost
Value `
3,000
5,000
5,000
11,400
3
3
6,600
20,300
3,300
50.00
28.75
150.00
56.25
40.00
100.00
37.50
1,50,000
1,43,750
7,50,000
6,41,250
0
0
2,64,000
20,30,000
1,23,750
1.00
1.00
1.00
1.00
--1.00
1.00
1.00
3,000
5,000
5,000
11,400
0
0
6,600
20,300
3,300
3,000
5,000
5,000
11,400
0
0
6,600
20,300
3,300
46,850
4,600
28.75
87.50
13,52,688
4,02,500
1.00
1.00
46,850
4,600
46,850
4,600
4,850
130.00
6,30,500
450
170.00
76,500
8,333
1.00
8,333
55,400
51.25
28,39,250
2,700
145.00
3,91,500
5,000
42.50
2,12,500
8,333
1.00
8,333
240
80.00
19,200
2,000
67.50
1,35,000
2,100
50.00
1,05,000
1,95,462
10 1,02,84,054
B: Shares, which are in dematerialized form as on 31.03.2013
Ashnoor Textile Mills Ltd.
21,280
89.29
19,00,000
Total of A and B
2,16,742
00 1,21,84,054
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
12
4,850
450
8,333
55,400
2,700
5,000
8,333
240
2,000
2,100
1,95,456
4,850
450
8,333
55,400
2,700
5,000
8,333
240
2,000
2,100
1,95,456
4.16
00
88,525
2,83,981
88,525
2,83,981
Quantity wise
Equity Shares fully paid up

(Previous Years figures)
Purchases/
Additions
Sales
List of outstanding shares as on 31.03.2013

A: Shares, which are in physical form:
Name of the Scrip / Equity Shares
Adhunik Synthetics Ltd
Akhil Ceramics Ltd.
Arlabs Ltd.
Aryan Finefab Ltd.
Bhishma Realty Ltd.
Capricon Realty Ltd.
Cepham Organics Ltd.
Dhar Cement Ltd.
Electra (India) Ltd.
Gujarat Telephone Cables Ltd.
(sent to SHCIL for Demat
HMG Industries Ltd.
Indo Gulf Explosives Ltd./
(Indo Gulf Corp Ltd
Kunal Engineering Co. Ltd.
Niranjan Piramal Textile Mills Ltd
Nova Electro Magnetics Ltd.
Prestige Foods Ltd.
Prestige HM-Poly containers Ltd.
Pyarelal Textile Ltd.
Rampur Fertilizers Ltd.
Shri Ishar Alloy Steels Ltd.
Sipani Auto Mobiles Ltd.
Quantity
31.03.2013
205
Mkt. Rate Mkt. Value Cost or Mkt. Value

31.03.2013 31.03.2013 which-ever is less
31.03.2013 `
`
`

9 : :
31.03.2013
- ,
] ( 7)
:
31.03.2012
14,35,014
14,35,014
14,35,014
1,435,014
10 : :
31.03.2013
(i) ;
\
(ii) ]
() 12 :
() 12
31.03.2012
40,18,203
18,55,00,000
`
9,69,380
17,05,00,000
5,00,000 18,60,00,000
95,00,000 18,00,00,000
19,00,18,203
18,09,69,380
11 : :
31.03.2013
31.03.2012
()
() - , \ :
`
0
i) 2007-08, 2009-10,
2010-11,2011-12,2012-13 -
2,27,81,286
`
0
2,04,71,404
-
2,33,08,397
5,27,111 2,07,41,377
2,69,973
ii) 1994-95,1995-96,1996-97, 2008-09
10,30,92,497
10,30,92,497
iii)
1,00,000
1,00,000
v) ]
31,000
1,31,000
31,000
1,31,000
10,37,50,608
10,34,93,470
- :

31.03.2012
1994-95
`
1995-96 2,83,11,822
`
2,83,11,822
1995-96
1996-97 4,35,81,300
4,35,81,300
3,02,57,801
1996-97
1997-98 3,02,57,801
2007-08
2008-09
39,00,000
39,00,000
2009-10
2010-11
5,01,110
5,01,110
2010-11
2011-12
6,20,000
6,20,000
2011-12
2012-13 1,09,00,000
1,09,00,000
2012-13
2013-14
206
31.03.2013
9,53,000
11,90,25,033 11,80,72,033

NOTE No : 9 : TRADE RECEIVABLE :
`
`

`
`
Trade Receivables - unsecured, considered doubtful - a/c Incab

Industries Ltd ( Ref Note No 7)
14,35,014
14,35,014
Less : Provision for Bad & Doubtful receivables
14,35,014
Particulars
0
0
14,35,014
0
0
Note No 10 : CASH AND CASH EQUIVALENTS :

`
`
Particulars

`
`
(i) Balances with Banks;

In Current Account
40,18,203
9,69,380
(ii) Bank Deposits

(a) Up to 12 Months Maturity :
18,55,00,000
(b) More than 12 Months maturity
17,05,00,000
5,00,000 18,60,00,000
95,00,000 18,00,00,000
19,00,18,203
18,09,69,380
Total
Note No 11 : LONG TERM LOANS AND ADVANCES :

`
`
0
Particulars

`
`
(a) Loans and advances to related parties

0
(b) Others - Unsecured, considered good:
i) Provision for Income Tax - Financial Year 2007-08, 2009-10,
2010-11,2011-12,2012-13
2,27,81,286
2,04,71,404
Less : Advance Tax and TDS
2,33,08,397
5,27,111 2,07,41,377
2,69,973
ii) Advance Tax and TDS for the Financial Year 1994-95,
1995-96,1996-97, 2008-09
10,30,92,497
10,30,92,497
iii) Advance to Advocates
1,00,000
1,00,000
iv) Deposit with Telephones Department
31,000
Total
1,31,000
31,000
10,37,50,608
1,31,000
10,34,93,470
Details of advance Income Tax Payment - Year wise :

Financial
Year
Relevant
Asst Year
1994-95
31.03.2013
`
1995-96 2,83,11,822
31.03.2012
`
2,83,11,822
1995-96
1996-97 4,35,81,300
4,35,81,300
1996-97
1997-98 3,02,57,801
3,02,57,801
2007-08
2008-09
39,00,000
39,00,000
2009-10
2010-11
5,01,110
5,01,110
2010-11
2011-12
6,20,000
6,20,000
2011-12
2012-13 1,09,00,000
1,09,00,000
2012-13
2013-14
Total
207
9,53,000
11,90,25,033 11,80,72,033

-

31.03.2013
31.03.2012
`
8,19,506
1996-97
1997-98
`
8,19,506
1999-00
2000-01
15,232
15,232
2007-08
2008-09
13,42,714
13,42,714
2008-09
2009-10
1,06,836
1,06,836
2009-10
2010-11
10,32,903
10,32,903
2010-11
2011-12
9,70,202
9,70,202
2011-12
2012-13
14,67,648
14,67,648
2012-13
2013-14
16,14,020
73,69,061
57,55,041
31.03.2013 31.03.2012
`
`
2011-12
2012-13
56,77,308
56,77,308
2012-13
2013-14
14,35,872
71,13,180
56,77,308
Total
.14,35,872 \ \ 2012-13 .23,09,882

.5,672,308 \ \ 2011-12 .12,310,713
. :12 : :
(] )
31.03.2013
31.03.2012
(I) :
] :
) \ ( )

, .
) ] .
)
) ]
7,98,69,658
40,02,46,575
2,46,00,000
2,46,00,000
10,21,50,923
10,21,50,923
76,24,756
21,42,45,337
52,69,97,498
) , 1995 . 45: \ () 15.12.1992

] \ ` 1057282829 ] /
. 1997 \ ` 243,678,371 9%
] ]. ( ) 19.06.2001 ,
1992 \ ` 35 ]
] \. 09.09.2011 ] ]
. (`400,246,575)
208

Details of the TDS - Year wise
Financial
Year
Relevant
Asst Year
1996-97
31.03.2013
`
1997-98
8,19,506
31.03.2012
`
8,19,506
1999-00
2000-01
15,232
15,232
2007-08
2008-09
13,42,714
13,42,714
2008-09
2009-10
1,06,836
1,06,836
2009-10
2010-11
10,32,903
10,32,903
2010-11
2011-12
9,70,202
9,70,202
2011-12
2012-13
14,67,648
14,67,648
2012-13
2013-14
16,14,020
73,69,061
57,55,041
2011-12
31.03.2013
`
2012-13
56,77,308
31.03.2012
`
56,77,308
2012-13
2013-14
Total
Details of MAT Credit Utilised

Financial
Year
Relevant
Asst Year
Total
14,35,872
71,13,180
56,77,308
Provision for Income Tax for the financial year 2012-13 is made ` 23,09,882/- after considering the MAT credit entitlement of
`14,35,872/- and the provision for Income Tax was made for the financial Year 2011-12 of ` 12,310,713 after considering the
MAT credit entitlement of ` 5,677,308.
Note No :12 :CONTINGENT LIABILITIES AND COMMITMENTS :
( to the extent not provided for )

`
`
Particulars

`
`
(i) Contingent Liabilities :

Claims against the company not acknowledged as debts :
a) Standard Chartered Bank (SCB)
The SCB filed suits against the Company and the matter
is in the Hon'ble Special Court, Mumbai.
{Suit No.45/1995 & 1/1998}
7,98,69,658
40,02,46,575
b) Tamilnadu Newsprint & Papers Ltd
2,46,00,000
2,46,00,000
10,21,50,923
10,21,50,923
c) Income Tax relating to the asst years in appeal

d) Interest Tax Appels filed by the I T Dept against the
Tribunal Orders.
76,24,756
21,42,45,337
52,69,97,498
a) Civil Suit No 45 of 1995 in the Special Court, Mumbai : Standard Chartered Bank (SCB) filed a suit on 15.12.1992 against
Andhra Bank & ABFSL alleging that it had paid `1,05,72,82,829 in five transactions for which they have not received stocks
and/or securities. Later during October 1997 SCB informed that they will not be pressing their claim pertaining to one
transaction of 9% PFC Bonds of ` 24,36,78,371. Further on behalf of the plaintiff (SCB) it was submitted on 19.06.2011 to the
Hon'ble Special Court, Mumbai that out of the remaining four transactions referred in the plaint of December 1992, SCB does
not wish to press other transactions other than the transaction relating to CANTRIPLE Units of ` 35 Crore plus interest.
This fact was recorded in the Hon'ble Court in its order dated 09.09.2011 indicating that the Plaintiff i.e. SCB has given up its
claim in respect of the transactions except CANTRIPLE Units.(` 40,02,46,575).
209

, 1995 . 45 13.07.2012
/ \
] ] \ ] .10
, .40.02
) , 1998 .1 26.09.1991 .23
11.5% .23,12,10,617.33 ( ) .23,11,10,821.92
\ .99,795.41 ]
26.09.1991 \
\ ]
.23,12,10,617.33 ]

\ 26.09.1991 \
, .1265 .79,869,658.42
] /
\ 28 , 2013 6
) \\ 2011
2291-2292
:
) : ( ) 1993-94 1997-98 1999-00 ] \\
, \ .
]
) 2008-09: , 1961 143(1) ` 5,28,790/- ( )
\ ] / ( )
\ . ( )
, 1961 ] .
. ( )
2010-11 , 143(1) \ 2008-09 .1075
] .92,065 ] 2009-10 ] ]
25.02.2011 \ ] \

2011-12 15.10.2012 ] ]

) ] 1993-94 1997-98 ] ]
1974 ()
() ()
, ]
\\ , 1995-96 . 6/\/2003
. 86/2012 1993-94 . 4/\/2003 18.01.2007
. 149/2012
] 1974 \ 1993-94 1995-96 .2,426,473
.807806
210

Finally, the Hon'ble Special Court, Mumbai passed the order on 13.07.2012 in Suit No 45 of 1995 directing the Custodian to
hand over/ return the Cantriple units to the Plaintiffs. If the securities have been sold pursuent to any order passed by this court,
then the amount which has been received shall be paid with interest accrued therein. Further, Mr H P Dalal to pay the cost of suit
which are quantified at `10 Lakhs. With this no order against the company hence the contingent liability of ` 40.02 Crore is
removed during the year
b) Suit No 1 of 1998 in the Special Court, Mumbai : In this suit the SCB alleged that they had purchased 11.5% GOI Bonds with F
V of ` 23 Crore on 26.09.1991 from ABFSL for ` 23,12,10,617.33 and that after taking into consideration the transaction value of
certain stock sold by the Plaintiffs (SCB) to the Defendants, amounting to ` 23,11,10,821.92, the sum of ` 99,795.41 was
payable by the plaintiffs which was alleged to have paid by P O dated 26.09.1991 drawn and in favour of the Andhra Bank. SCB
stated that they have subsequently learnt that the proceeds of the said pay order were credited to the account of Mr H P Dalal.
The Plaintiffs alleged that they found that they had not received delivery of the said securities. Hence claiming allegedly the
delivery of the said securities alternatively asking for refund the aggregate sum of ` 23,12,10,617.33.
ABFSL had denied having any transaction with SCB in the suit transactions and it was further denied having any previty of
contract with the SCB in the suit transactions. Later on SCB, the Plaintiffs, stated that in view of the Plaintiffs inability to
conclusively establish delivery of the securities sold by the plaintiffs to the defendants on 26.09.1991, save and except the
delivery of BR No 1265, the plaintiffs in the present suit are confining their claim in the present suit to ` 7,98,69,658.42.
The Company had also denied having any transactions with SCB as claimed in the plaint/amended plaints. Hon'ble Special
court on 28th February 2013 adjourned the matter six weeks for framing issues.
c) The Civil Suit filed by the TNPL is now on its appeal before the Hon,ble Supreme Court and numbered as Civil Appeal No
2291-2292 of 2011 (Ref. Note No 5 )
INCOME TAX :
d) Income Tax : The Company (ABFSL) had gone on Income Tax appeals for the Asst. Years 1993-94 to 1997-98 & 1999-00
which are pending before the Honble High Court of Andhra Pradesh. Pending disposal of these appeals, the advance Tax and
Self Asst.Taxes paid and taxes adjusted out of refunds by the department are outstanding.
e) Assessment Year 2008-09: The Company (ABFSL) received on 12.03.2010 an intimation U/s 143(1) of Income Tax
Act,1961 with a demand of ` 5,28,790/-, wherein IT Department has not taken into consideration all TDS remittances /
recovered by Bankers and the FBT & Income Tax remittances made by Company (ABFSL). The Company (ABFSL) submitted
detailed proofs of original TDS certificates and copies of the Counterfoils remitting the FBT to Income Tax Department with a
request to issue modified orders U/s 154 of IT Act, 1961, there is no tax liability for the company to pay further. The Company
(ABFSL) is pursuing for the modified orders.
Asst Year 2010-11: The Company has received the intimation u/s 143(1) from the CPC, Bangalore indicating that an amount of
` 92,065 was refundable to the company after adjusting an amount of ` 1075 towards arrears demand outstanding for the Asst Year
2008-09 which itself already adjusted out of the refund for Asst Year 2009-10 vide their intimation dated 25.02.2011.However the
refund determined itself was not sent to the company till date . The Company is pursuing for the refund.
Asst Year 2011-12: The company has submitted the revised return 15.10.2012 correcting the mistakes in the return which is
yet to be processed .
f) Interest Tax : The Assessing officer completed the assessments under Interest Tax Act, 1974 making additions of lease
rentals and hire purchase income for the Asst Years1993-94 to1997-98. As against the orders of the Assessing officer, the
company filed appeals before the commissioner of Income Tax (Appeals). The CIT(A) allowed the company's Appeals.
Aggrieved by the orders of the CIT(A), the Income Tax department filed appeals before Income Tax Appellate Tribunal,
Hyderabad. The Tribunal Dismissed the department's appeals.
Aggrieved by the above orders of the Tribunal, the department filed two appeals before the High Court, A.P in ITTA No 86/2012
against the Tribunal Order in ITA No 6/H/2003 for the Asst .Year 1995-96 and ITTA No : 149/2012 against the Tribunal Order in
ITA No 4/H/2003 dated 18.01.2007 for the Asst. Year 1993-94. The contention of the department is that the tribunal erred in
holding that Hire Purchase charges are not exigible to tax under Interest Tax Act, 1974. The Hire Purchase charges for these
two assessment years 1993-94 and 1995-96 are ` 24,26,473/- and ` 8,07,806/- respectively.
211

:
1) ] ] - . . ( ) . .(
) \ 2003-2004 . , ]
] , ,
.
2) ( ) () ` 4.00 ] ]
1997 . 1997 . ,
] . ( ) ] ]
() ] \ ( ) ]
\ . ( ) , .
3) 1994 ( ) 153 155 ` 100
28/09/1994 ]
] ]. ` 7,08,000/- ] ( ) 9/08/2004
. ] ]
, , .
4. 1947
17/2011 ] \
1947 (1)() , ]
] . 14/2012 ]
] ] ]
] ,
: 13 :
) . ( : )
) ] ] . ( : )
. 14 - \ ]
1, 2012 \ 31, 2013

`
) ]
(i) ]
(ii) 03.08.2011 \\
]
(iii) .. ]
) :
i)
-
ii) :

3,39,309
]
0

0

2,83,981
] / ( )
1, 2011 \ 31, 2012

`
1,61,40,193
1,46,76,479
4,90,00,000
1,61,40,193
69,530
9,000
6,37,46,009
9,036
3,11,857
3,39,309
0
2,83,981
-55,328
212
-55,328
1,60,93,865
3,39,309
27,452
27,452
6,37,82,497

Other matters :
1. Interest on Inter Corporate Deposits A/c M/s. Kudremukh Iron Ore Co Ltd. The dispute between the Company
(ABFSL) and M/s. Kudremukh Iron Ore Co Ltd [KIOCL] was settled during the year 2003-04. However, KIOCL has
reserved right to claim on pro-rata basis along with other PSUs in case of surplus arising after meeting all liabilities, for
the interest from the date of maturity of Inter Corporate Deposits up to the date of payment.
2) The Company (ABFSL) repaid in 1997 the total Inter Corporate Deposits of `4.00 Crore placed in l992 by M/s Mishra
Dhatu Nigam Ltd (MIDHANI) with interest up to the contracted date. MIDHANI acknowledged the receipt as full and
final settlement in 1997. However, MIDHANI, subsequently, has made a claim for interest after the contracted date. On
refusal by the Company (ABFSL) to acknowledge or pay the interest, MIDHANI has approached the Committee on
Disputes (COD) who directed the MIDHANI to Permanent Machinery of Arbitration (PMA) with whom the matter is
pending. The Company (ABFSL) has legal opinion saying that the claim of MIDHANI is not sustainable and hence no
provision has been made.
3) During the year 1994, the Company (ABFSL) has paid the amounts of ICD 153 & 155 to Delhi Financial Corporation
to the extent of principal sum of `100 lacs each, with an agreement dt.28/9/1994 that the contracted interest up to due
date shall be paid after paying the Principal and Interest amount of ICD to all other PSU`s. There was a claim for
interest of `7,08,000/- for the contracted period and the Company (ABFSL) has paid the same on 9/08/2004. However
Delhi Financial Corporation has reserved the right to claim on prorata basis along with other PSUs in case of surplus
arising after meeting all liabilities, for the interest from the date of maturity of ICDs to date of payment.
4) Dispute in the Industrial Tribunal, Hyderabad : An application under the I D Act 1947 was filed and the same was
registered as LCID 17/2011. Further an industrial dispute between the workman and the management of Andhra Bank
have been referred to the Industrial Tribunal Cum Labour Court, Hyderabad for adjudication u/s (1)(d) of the I D Act,
1947 and the same was taken on file of the Tribunal and registered as I D No 14/2012. This indicates that two I Ds were
registered on the same matter of claiming the employment after leaving the company who worked on temporary basis in
the company. These are yet to come up for regular hearing in the CGIT cum Labour Court, Hyderabad.
NOTE No : 13 :
a) No dividend has been proposed to be distributed to the Equity shareholders for the year. (Previous year: Nil)
b) The company has not issued any securities during the year for any specific purpose.
( Previous Year : Nil )
NOTE No :14: REVENUE FROM OPERATIONS
Particulars
a) Interest Income
(i) On Bank Deposits
(ii) Interest refund received as per
Supreme Court order dated
03.08.2011
(iii) Interest on I.T Refunds
b) Other Income :
i) Dividend Income
from domestic companies
ii) Investment Business :
Opening Stock
3,39,309
Add : Purchases
0
Sales of stock (Cost)
0
Closing Stock
2,83,981
Earnings / Net of Investments ( Loss )
For the period April 1, 2012

to March 31, 2013
`
`

to March 31, 2012
`
`
1,61,40,193
1,46,76,479
0
0
4,90,00,000
69,530
1,61,40,193
9,000
6,37,46,009
9,036
3,11,857
3,39,309
2,83,981
-55,328
-55,328
1,60,93,865
213
0
3,39,309
27,452
27,452
6,37,82,497

03.08.2011 \\ { \
] 31 \ 2012 ] ` 49000000 .
] .
15 :- \
1, 2012 \ 31, 2013

`

/ ( )
\

\
1, 2011 \ 31, 2012

`
7,93,897
7,74,079
41,620
46,535
37,280
39,828
0
54,700
74,457
30,090
9,27,497
9,27,497
9,64,989
9,64,989
: 16 :
1, 2012 \ 31, 2013

`
1, 2011 \ 31, 2012

`
85,583
24,000
24,000
12,558
22,162
10,086
46,644
46,644
14,320
1,46,065
1,46,065
.17 :-
1, 2012 \ 31, 2013

`
28,090
16,854
1, 2011 \ 31, 2012

`
27,575
44,944
16,545
44,120
34,19,211
10,60,344
84,742
7,224
7,060
2,330
6,773
0
20,443
35,65,224
11,31,967
() \
] / ] . / \
] . ]
214

As per the directions and order of the Hon'ble Supreme Court dated 03.08.2011 the issue between the Tamilnadu News Print &
Papers Ltd and ABFSL relating to the interest on ICDs was settled and received a refund by way of an interest amount of
` 4,90,00,000/- during the previous year ending 31st March,2012. This amount was treated as an interest income during the
previous year and shown as an extraordinary item.
NOTE NO.15 :- EMPLOYEE BENEFITS EXPENSES
Particulars
to March 31, 2013
`
`
Salaries & Allowances
7,93,897

to March 31, 2012
`
`
7,74,079
Contribution to Provident / Pension Fund

(Andhra Bank)
41,620
46,535
Gratuity Expense
37,280
39,828
Rent for Quarters -staff
Staff welfare expenses
54,700
74,457
9,27,497
30,090
9,27,497
NOTE No : 16 : ADMINISTRATIVE AND OTHER EXPENSES

Particulars
to March 31, 2013
`
`
Travelling & Conveyance
0
Rent for office premises
24,000
Printing & stationery
12,558
Postage & Telephones
10,086
9,64,989
9,64,989

to March 31, 2012
`
`
85,583
24,000
22,162
46,644
14,320
46,644
1,46,065
1,46,065
NOTE NO.17 :- OTHER EXPENSES

Particulars

to March 31, 2013
`
`

to March 31, 2012
`
`
Payment to Auditors
-As Auditor
28,090
-For Tax Audit
16,854
Legal & Professional fees
27,575
44,944
34,19,211
Reimbursement of Expenses - Legal
16,545
44,120
10,60,344
84,742
Filing Fees
7,224
7,060
Computer Maintenance
2,330
Miscellaneous expenses
6,773
20,443
35,65,224
11,31,967
The staff working in the company are on deputation from Andhra Bank and they are eligible for Employee Benefits as per the
Service Regulations (ABOSR) of Andhra Bank from time to time and the same is being paid / reimbursed to Andhra Bank.
Contribution to Provident / pension Fund and proportionate amount towards Gratuity is also paid to the Andhra Bank to the
extent applicable. No separate fund is being maintained by the company.
215

: 18 : :
1, 2012 \ 31, 2013

`

:

(
)
1, 2011 \ 31, 2012

`
37,45,754
1,79,88,021
14,35,872
56,77,308
23,09,882
23,09,882
23,09,882
1,23,10,713
1,23,10,713
1,23,10,713
2012-13 ] `16,14,020/- ` 9,53,000/- . \

, . 2011-12 ] `14,67,648
`1,09,00,000 . .
/ :
2011-12 1995-96, 2003-04 2004-05
69,530 ] \
2011-12 .56,386
: 19 : ] :
1, 2012 \ 31, 2013

`
(i) & :
]
:
:
:
& ] (/ )
1, 2011 \ 31, 2012

`
1.85
92,43,932
9.83
4,91,71,659
50,00,000
1.85
50,00,000
9.83
: 20 : ] :
) ] 9 ] 1997 { ]
(\) .2238/\ 0472/2004-05 28] 2005 ( ) ] ] (
) ]. (
) \ \ ] 3 ( ) \ ]
( ) ] ]. ( )
] \ \ 03.02.2005 . ( ) ,
.
) ( ) 09.01.2008 \ ( )
]. { 05.12.2008 ] .
: 21 : \ :
) , 1956 \ 6 -1 -2 ] ] ,
] .
) \ / / .
216

NOTE No : 18 : TAX EXPENSE :
Particulars
Tax Expense under normal provisions of I.T Act

to March 31, 2013
`
`
37,45,754
Less: MAT Credit Entitlement during the year
14,35,872
Provision made for Tax expense for the year

(Equal to the Tax Expense under MAT
Provisions of I.T Act)
23,09,882

to March 31, 2012
`
`
1,79,88,021
56,77,308
23,09,882
1,23,10,713
23,09,882
1,23,10,713
1,23,10,713
The Company has paid the advance Income Tax of ` 9,53,000./- in addition to the TDS of ` 16,14,020/- on interest income
during the year 2012-13. The Company comes under the regular provisions of the Income Tax during the current year but
eligible for MAT credit. During the previous year 2011-12 the company has paid an advance Income tax of ` 1,09,00,000/in addition to the TDS of ` 14,67,648/- on interest income and the company comes under normal provisions of the Income
Tax Act.
Tax refunds / Expense for earlier Asst Years :
During the Previous year 2011-12 the company has received the income tax refunds relating to the Asst Years 1995-96, 200304 and 2004-05. Out of the refunds an interest income of ` 69,530 was included in the other income during the previous year
2011-12. After reversing the existing TDS to the relevant assessment years, a net tax expense of ` 56,386 was accounted for
the earlier asst. years 2011-12.
NOTE No : 19 : EARNINGS PER EQUITY SHARE :
Particulars

to March 31, 2013
`
`
(i) BASIC & DILUTED : Earnings per

Equity Share

to March 31, 2012
`
`
1.85
9.83
Calculation of EPS :
A : Net Profit
92,43,932
4,91,71,659
B : Weighted Average Number of Equity Shares
50,00,000
50,00,000
BASIC & DILUTED Earnings per Equity Share ( A / B )
1.85
9.83
NOTE No : 20 : Status of Registration as NBFC :

a) As per the directions issued by Reserve Bank of India for registration of Non Banking Financial Companies on 9th
January 1997, the Company's (ABFSL) application for registration was rejected by RBI vide their letter No. DNBS (H) CMS
No.2238/HYQ 0472/2004-05 dated 28thJanuary 2005 requiring the Company (ABFSL) to pass a specific Board Resolution not
to carry on the business of an NonBanking Financial Institution. RBI further informed the Company (ABFSL) to ensure
that within a period of 3 years from the date of issue of their said letter, the financial assets of the Company (ABFSL) are
disposed of and the Company (ABFSL) is converted into a Non-Banking Non-Financial Institution or is wound up. Accordingly
the Company (ABFSL) passed Board Resolution on 03.02.2005 to explore the course of suitable action by the Managing
Director at the earliest. The Company (ABFSL) has disposed of the financial assets except the shares.
b) The Company (ABFSL) has informed Reserve Bank on 09.01.2008 about disposal of the Financial Assets and requested to
treat the Company (ABFSL) as Non-Banking Non-Financial Institution. Reserve Bank of India replied on 05.12.2008 that it has
taken the contents mentioned therein on record.
NOTE No : 21 : Other Information :
a) Information with regard to the matters in the other clauses of Part-I and Part II of Schedule VI to the Companies Act, 1956 to
the extent they are either NIL or not applicable to the Company has not been given.
b) The figures of the previous year have been regrouped/reclassified/rearranged wherever necessary to confirm the Current
Years presentation.
217
2012-13
31 \, 2013 22
.
31. \, 2013
.
(` )

\

:

:
\

:
] : ]
]
]
2012-13
2011-12
160.94
637.83
45.40
22.43
115.54
615.40
0.01
0.01
115.53
615.39
23.09
123.11
92.44
492.28
0.56
92.44
491.72
1956 260

4. ] , ] , :
] , ] ,
1956 217 (1) ()
1988 (
)
.
5. \
, 1956 217 (2)
1975 (\ )
] \
`60,00,000/- `5,00,000/- .
(1268.59) (1760.31)
(1176.15) (1268.59)
1. \ :
] ]
2012-13 .92.44
( 2011-12 .492.28 )
31.03.2013 1176.15 \ ( 2011512
.1268.59 )
2.] ] :
: ] ]
. 2012-13
({ ), 1998 ] ] ]
. 2013-14
] ] .
3. .
] , ] 15.10.2011 ,

24.05.2012 .
, 01.09.2012
,
, 04.09.2012
218
6. :
1956 217 (2 )

:
I) 31 \ 2013
\ \
.
ii) \
/
] .
iii)
\
1956
\ .
iv) 31, \ 2013
() \ .
7. :
1956 292
:
/ .
1.
:
2.
:
3.
:
4. \
:


the Company on 04.09.2012. As per the provisions of section
260 of the Companies Act 1956, these Directors hold the
office up to the forthcoming Annual General Meeting of the
Company.
Directors Report 2012-13

To the Members,
Your Directors are pleased to present the 22ndAnnual
Report of the Company together with the Audited Statement
of Accounts for the year ended 31st March, 2013.
4. Conservation of Energy, Technology Absorption, Foreign

Exchange Earnings and outgo:
The Financial Highlights of the Company for the year ended

31st March, 2013 is summarized below:
The particulars relating to Conservation of Energy,

Technology Absorption, Foreign Exchange Earnings and
outgo, as required to be disclosed under Section 217 (1) (e) of
the Companies Act, 1956 read with the Companies
(Disclosure of particulars in the Report of Board of Directors)
Rules, 1988 are either NIL or are not applicable.
(Amount ` in Lakhs)
2012-13
2011-12
160.94
637.83
45.40
22.43
115.54
615.40
0.01
0.01
115.53
615.39
Less: Provision for Current

Taxation Net of MAT Entitlement
23.09
123.11
Profit after tax
92.44
492.28
0.56
92.44
491.72
Total Income
Operating and Administrative
Expenses
Profit before depreciation
Less: Depreciation
Profit Before Tax
Less: Income Tax for earlier years

Total
Add: Balance in the Profit &
Loss A/c
(1268.59) (1760.31)
Balance in P & L A/c to be

carried to Balance Sheet
(1176.15) (1268.59)
5. Particulars of Employees:
As required under Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules, 1975
as amended may be treated as NIL as no Employee of the
Company is drawing a remuneration of ` 60,00,000/- p.a.
or ` 5,00,000/- p.m.
6. Directors Responsibility Statement.
Pursuant to the requirement under Section 217 (2AA) of the
Companies Act, 1956 with respect to Directors` Responsibility
Statement, the Directors hereby confirm that:
(i) in the preparation of the Accounts for the Financial Year ended
31st March 2013, the applicable Accounting Standards have
been followed along with proper explanation relating to material
departures;
(ii) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the
state of affairs of the company as at the end of the financial year
and of the profit / loss of the company for the Financial Year;
1. Review of Operations
The income mainly consists of interest on Bank Deposits.
The company earned a profit of` 92.44 lacs during the year
2012-13 (`492.28 in 2011-12) after providing for
depreciation and Income Tax net of MAT entitlement. The
company still carries an accumulated loss of ` 1176.15 lacs
as on 31st March, 2013 (`.1268.59 lacs in 2011-12).
(iii) the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 1956 for safeguarding the
assets of the company and for preventing and detecting fraud and
other irregularities;
2. Public Deposits.
At present Company is not holding any Public Deposits. During
the year 2012-13, the company has not accepted any deposits
from the public within the meaning of provisions of Non-Banking
Financial Companies(Reserve Bank) Directions,1998.
The Board of Directors of the company also resolved not to
accept any Public Deposits during the year 2013-14.
(iv) the directors have prepared the Annual Accounts for the
financial year ended 31st March 2013 on a going concern basis.
7. Audit Committee.
In accordance with the provisions of Section 292A of the
Companies, Act 1956, the Company re-constituted the Audit
Committee comprising of the following Directors at present:
3. Board of Directors.
Shri A A TAJ, Chairman of the Board, who has been on the
Board since 15.10.2011, resigned from the Board on account
of his Superannuation from Andhra Bank as an Executive
Director and the same was accepted w e f 24.05.2012.
Shri K K Misra, Executive Director, has been appointed as an
additional Director and Chairman in the Board w.e.f
01.09.2012 and Shri K V Kannan, General Manager of
Andhra Bank has been appointed as Additional Director of
219
1. Shri R Athmaram
Director
2. Smt Y Prameela Rani
Director
3. Shri B Narendranatha Reddy
Director
4. Shri T V S Chandrasekhar
Chairman of
the Committee

8.
2012-13
] . ,
.
1956 619() .
9. :
{
,

220

. ,

.
:
: 20.04.2013
(. . )

8. Auditors
The Directors gratefully acknowledge the support and

direction provided by the parent Bank i.e. Andhra Bank. The
Board further places on record of its appreciation for the
services rendered and valuable guidance provided by the
directors during their tenure in the Board.
The Comptroller & Auditor General of India has appointed M/s

Satyanarayana Raju & Co, Chartered Accountants,
Hyderabad as Statutory Auditors of the Company for the
financial year 2012-13. The provisions of Section 619 (B) of
the Companies Act, 1956 are applicable to the Company.
For and on behalf of the Board of Directors
9. Acknowledgments.
Place: Hyderabad
Date : 20.04.2013.
The Directors thank Reserve Bank of India, and Comptroller &

Auditor General of India for their valuable guidance, support
and cooperation to the Company.
221
(K K MISRA)
CHAIRMAN

. 20 ] ]
28.01.2005 ,]
,
. . 09.01.2008
] . .
05.12.2008
] ]

()
] 31 \ , 2013 ,
,
\
]
, 1956 () 211 (3)
,

],
]
\

] ]

. 1 , ,

]
\ ,]

) 31 \ 2013

]

]
)

)

1. 227 (4)
] ( ) , 2003
() 4 5

\
]
] \
]

\ ]
]
\

2. 227 (3)
. ] ]
\
.
] ]\
.

. ,
, 1956 21 (3)

, ] ,

9 ], 1997 ] ,
1934 (1932 2) 56 ]
28.01.2005 ]
]
\
. 31 \, 2013
]
, 1956 274 (1) (])
31 \ 2013

222

Attention is invited to note No 20. As per the directions of RBI
vide their Lr dt.28.1.2005, the company has disposed off all its
financial assets except certain shares which are in the
physical form. Further, the company has approached RBI
vide Lr dt.09.01.2008 with a request to treat it as Non Banking
Non Financial Institution. RBI replied on 05.12.2008 that it has
taken the contents mentioned in the record.
AUDITORS REPORT
To
The Members of
Andhra Bank Financial Services Ltd.
We have audited the accompanying financial statements of
Andhra Bank Financial Services LTD (the Company),
which comprise the Balance Sheet as at March 31, 2013,
and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of
significant accounting policies and other explanatory
information.
The Board of directors of the company has passed a

resolution for non acceptance of any public deposits.
The company has not accepted any public deposits
during the year under reference
The company subject to point no.-1 has complied with
prudential norms relating to the Income recognition,
accounting standards, asset classification and provision
of bad and doubtful debts as applicable to it.
Management is responsible for the preparation of these

financial statements that give a true and fair view of the
financial position, financial performance and cash flows of
the Company in accordance with the Accounting Standards
referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 (the Act). This responsibility includes
the design, implementation and maintenance of internal
control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In our opinion and to the best of our information and according

to the explanations given to us, the financial statements give
the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of
the Company as at March 31, 2013;
Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards
require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material
misstatement.
b) in the case of the Profit and Loss Account, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows
for the year ended on that date.
1. As required by the Companies (Auditors Report) Order,
2003 (the Order) issued by the Central Government of India
in terms of sub-section (4A) of section 227 of the Act, we give
in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Companys
preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
management, as well as evaluating the overall presentation
of the financial statements.
2. As required by section 227(3) of the Act, we report that:

a) we have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law
have been kept by the Company so far as appears from
our examination of those books
c)
the Balance Sheet, Statement of Profit and Loss, and

Cash Flow Statement dealt with by this Report are in
agreement with the books of account.
d) in our opinion, the Balance Sheet, Statement of Profit and

Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956;
We believe that the audit evidence we have obtained is

opinion.
The company incorporated prior to January 9, 1997 has
applied for the registration as provided in the section 56 IA of
the Reserve Bank of India Act, 1934 (2 of 1934) and has
received a communication dt.28.1.2005 from the Reserve
bank of India rejecting the application for certificate of
registration as an NBFI.
e) on the basis of written representations received from the

directors as on March 31, 2013, and taken on record by
the Board of Directors, none of the directors is
disqualified as on March 31, 2013, from being appointed
as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
223

. \ \ ]
, 1956 44 1
] ]
] ]

.
1 31 \ 2013

]\ \
\
1 . ]

FRN 007527S

20.04.2013
/( \ )
. 005812
. \
, ,
] ] , ]\

. \
\

2 . ,

. \
]\

. ]\
,

3. () \
]\ ,
, ] , 1956 301
] \ ,
] 111(), 111()
111()
() \
]\ ,
, 1956 302 ]
\ ()
(])
224

f)
Since the Central Government has not issued any

notification as to the rate at which the cess is to be
paid under section 441A of the Companies Act, 1956
nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be
paid, no cess is due and payable by the Company.
The Annexure referred to in paragraph 1 of the Our

Report of even date to the members of Andhra Bank
Financial Services LTD. on the accounts of the company
for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate
and according to the information and explanation given to us
during the course of our audit, we report that:
For SATYANARAYANA RAJU &CO.

FRN 007527S
Place: Hyderabad
Date : 20.04.2013
1. (a) The company has maintained proper records

showing full particulars including quantitative details and
situation of its fixed assets including that of leased
assets.
Sd/(CA A. PURNACHANDRA RAO)

PARTNER
M.No: 005812
(b) As explained to us, fixed assets have been physically

verified by the management at reasonable intervals;
other than those assets that have been leased out by the
company no material discrepancies were noticed on
such verification.
(c) In our opinion and according to the information and
explanations given to us, no fixed asset has been
disposed during the year and therefore does not affect
the going concern assumption.
2. (a) As explained to us, the stock of shares, scrip, and
bonds have been physically verified during the year by
the management at reasonable intervals.
(b) In our opinion and according to the information and
explanations given to us, the procedures of physical
verification of inventories followed by the management
are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) In our opinion and on the basis of our examination of the
records, the Company is generally maintaining proper
records of its shares, scrip, and bonds. No material
discrepancy was noticed on physical verification of
stocks by the management as compared to book
records.
3. (a) According to the information and explanations given
to us and on the basis of our examination of the books of
account, the Company has not granted any loans,
secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section
301 of the Companies Act, 1956. Consequently, the
provisions of clauses iii (b), iii(c) and iii (d) of the order are
not applicable to the Company.
(b) According to the information and explanations given to
us and on the basis of our examination of the books of
account, the Company has not taken loans from
companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act,
1956. Thus sub clauses (f) & (g) are not applicable to the
company.
225

4. \

14. \

15. \ 31 \, 2013
-

5. 301
] ]
6. , 1956 58 58
] ]

16. \

7. , 1956 219 (1) ()

17. \

8. \

18. ]
.
, , ,
, , , ,

]
\ 31 \ 2013
6

19. \

\
]

FRN 007527S
. \ ,
, , ,
] ]

20.04.2013
9. \

10. \
,
\ \
11. \ ,
\
]
12. \ / \ /
( ) , 2003 ( )

13. \ ,
\
226
/( \ )
. 005812

4. In our opinion and according to the information
explanations given to us the company has no internal audit
system. However the internal control procedures in place
are commensurate with size and nature of business.
14. Based on our audit procedures and on the information

given by the management, we report that the company
has not raised any term loans during the year.
15. Based on the information and explanations given to us
and on an overall examination of the Balance Sheet of
the Company as at 31st March, 2013, we report that no
funds raised on short-term basis have been used for
long-term investment by the Company.
5. There are no transactions that need to enter into a

register in pursuance of sec 301 of Companies Act.
6. The Company has not accepted any deposits from the
public covered under section 58A and 58AA of the
Companies Act, 1956.
16. Based on the audit procedures performed and the

information and explanations given to us by the
management, we report that the Company has not made
any preferential allotment of shares during the year.
7. The company is not required to maintain cost records u/s

209(1)(d) of the Companies Act, 1956.
8. As per information & explanation furnished to us and in
our opinion, Provident Fund & ESI Act are not applicable
to the company
17. The Company has no outstanding debentures during the

period under audit.
18. The Company has not raised any money by public issue
during the year.
(a) According to the records of the company,

undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees
State Insurance, Income-tax, Sales-tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, cess to the
extent applicable and any other statutory dues have
generally been regularly deposited with the
appropriate authorities. According to the information
and explanations given to us there were no
outstanding statutory dues as on 31st of March, 2013
for a period of more than six months from the date they
became payable.
19. Based on the audit procedures performed and the

information and explanations given to us, we report that
no fraud on or by the Company has been noticed or
reported during the year, nor have we been informed of
such case by the management.
For SATYANARAYANA RAJU &CO.
FRN 007527S
(b) According to the information and explanations

given to us, there is no amounts payable in respect of
income tax, wealth tax, service tax, sales tax, customs
duty and excise duty which have not been deposited
on account of any disputes.
Place: Hyderabad
Date : 20.04.2013
9. The Company has the accumulated loss and has not

incurred cash loss during the financial year covered by
our audit and in the immediately preceding financial year.
10. Based on our audit procedures and on the information
and explanations given by the management, we are of
the opinion that, the Company has not defaulted in
repayment of dues to a financial institution, bank or
debenture holders.
11. According to the information and explanations given to
us, the Company has not granted loans and advances on
the basis of security by way of pledge of shares,
debentures and other securities.
12. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the
Companies (Auditor's Report) Order, 2003 (as
amended) is not applicable to the Company.
13. According to information and explanations given to us,
the Company is not trading in Shares, Mutual funds &
other Investments.
227
Sd/(CA A. PURNACHANDRA RAO)

PARTNER
M.No: 005812
228
/ /

CONSOLIDATED FINANCIAL STATEMENTS OF ANDHRA BANK
AND ITS SUBSIDIARY/ASSOCIATE/JOINT VENTURES
229
/ /
CONSOLIDATED BALANCE SHEET OF ANDHRA BANK AND SUBSIDIARY/ASSOCIATE/JOINT VENTURES
(` ] ) (` in 000)
PARTICULARS
31.03.2013
31.03.2012
Schedule No.
AS ON 31.03.2013
AS ON 31.03.2012
SOURCE OF FUNDS
] CAPITAL
RESERVES & SURPLUS
] DEPOSITS
BORROWINGS
OTHER LIABILITIES & PROVISIONS
TOTAL
] APPLICATION OF FUNDS
CASH AND BALANCES WITH RBI
\
BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
INVESTMENTS
ADVANCES
\ FIXED ASSETS
OTHER ASSETS
TOTAL
] CONTINGENT LIABILITIES
BILLS FOR COLLECTION
NOTES ON ACCOUNTS
\
The Schedules referred to above form an integral part of Balance Sheet
..

. . . \
1
2
3
4
5
559,58,04
7894,56,09
123796,45,26
11125,77,73
4182,95,17
147559,32,29
559,58,04
6941,30,02
105833,12,12
8245,27,59
3685,03,08
125264,30,85
6084,44,71
5563,94,89
1161,38,50
38376,00,98
98373,30,10
322,21,08
3241,96,92
147559,32,29
28299,20,68
4328,67,19
3309,69,17
30077,01,77
83222,97,74
316,33,78
2774,33,50
125264,30,85
40834,06,57
3659,29,30
7
8
9
10
11
12
17
18
]

- 002413

-004453
(. )
(]. )
^ (..018883)

-310100
^ (..024860)

-108959
( )
^ (..045239)
(. )
^ (..051656)

31.05.2013
230
. .

-004137
(.)
^ (.. 205869)

-312063
( )
^ (..050531)
/ /
CONSOLIDATED PROFIT & LOSS ACCOUNT OF ANDHRA BANK AND SUBSIDIARY/ASSOCIATE/JOINT VENTURES
\
Schedule No.
PARTICULARS
INCOME
\ ] INTEREST EARNED
13
OTHER INCOME
14
TOTAL INCOME
EXPENDITURE
\ ] INTEREST EXPENDED
15
\ OPERATING EXPENSES
16
PROVISIONS AND CONTINGENCIES
TOTAL EXPENDITURE

PROFIT BEFORE EXTRAORDINARY ITEMS AND SHARE OF PROFIT IN ASSOCIATES
EXTRAORDINARY ITEMS
SHARE OF PROFIT IN THE ASSOCIATES
CONSOLIDATED NET PROFIT FOR THE YEAR
CONSOLIDATED NET PROFIT BROUGHT FORWARD
TOTAL
] APPROPRIATIONS
] Transfer to Capital Reserve
] Transfer to Revenue & Other Reserves
Transfer to Special Reserve under IT Act
Proposed Dividend
Tax on Dividend
] BALANCE CARRIED OVER TO BALANCE SHEET
TOTAL
17
NOTES ON ACCOUNTS
18
( ) EARNING PER SHARE (BASIC AND DILUTED) `
\ .
The Schedules referred to above form an integral part of Profit & Loss Account
B.A.PRABHAKAR
CHAIRMAN & MANAGING DIRECTOR
T.V.S.CHANDRASEKHAR
GENERAL MANAGER
31.03.2013
Year Ended 31.03.2013
(` ] ) (` in 000)
31.03.2012
12972,06,01
1570,23,71
14542,29,72
11361,87,89
1238,98,35
12600,86,24
9151,23,54
2633,42,89
1480,19,33
13264,85,76
7577,95,08
2225,63,45
1472,69,95
11276,28,48
1277,43,96
7,10,44
1284,54,40
36,68,08
1324,57,76
4,90,00
5,01,58
1334,49,34
251,66,54
1321,22,48
1586,15,88
323,70,47
11,38,00
324,87,93
310,00,00
279,79,02
47,55,03
23,92,03
1321,22,48
337,17,67
4,45,00
677,89,80
165,00,00
307,76,92
49,92,78
43,93,71
1586,15,88
22.96
23.85
K.K.MISRA
S.K.KALRA
EXECUTIVE DIRECTOR
EXECUTIVE DIRECTOR
Y.AMARNATH
DEPUTY GENERAL MANAGER
As per our report of even date

FRN:002413S

FRN:004453S
(G.SIVARAMA KRISHNAPRASAD)

FRN:004137S
(R.PRAKASH)
FOR PATRO & CO

FRN:310100E
(N. ANANDA RAO)
FOR C R SAGDEO & CO

FRN:108959W
(SUMAN BOSE)

FRN:312063E
(INDRANATH NAG)
Place : Hyderabad
Date : 31-05-2013
231
/ /
SCHEDULES FORMING PART OF CONSOLIDATED BALANCE SHEET
PARTICULARS
\ SCHEDULE-1:: ] CAPITAL
I. ] AUTHORISED CAPITAL
II. ], , ISSUED, SUBSCRIBED, CALLED UP AND PAID UP
( 32,45,80,364 )
(Including 32,45,80,364 Equity Shares held by Central Government)
\ TOTAL SCHEDULE- 1
\ SCHEDULE- 2 :: RESERVES AND SURPLUS
I. STATUTORY RESERVE
Opening Balance
Total- I
II.] CAPITAL RESERVE
Opening Balance
Total-II
III. SHARE PREMIUM
Opening Balance
Total-III
IV. ] REVENUE RESERVE
Opening Balance
- Less : Deductions
Total-IV
V. FOREIGN CURRENCY TRANSLATION RESERVE
Opening Balance
- Less : Deductions
Total-V
VI. 36 (1) (viii)
SPECIAL RESERVE U/s 36 (1) (viii) of IT ACT
Opening Balance
- Less : Deductions
Total-VI
VII. BALANCE IN PROFIT & LOSS ACCOUNT
\ TOTAL SCHEDULE- 2
232
(` ] ) (` in 000)
31.03.2013
AS ON 31.03.2013
31.03.2012
AS ON 31.03.2012
3000,00,00
3000,00,00
559,58,04
559,58,04
559,58,04
559,58,04
2032,12,67
323,70,47
2355,83,14
1696,76,41
337,17,67
2033,94,08
353,84,71
11,38,00
365,22,71
349,39,71
4,45,00
353,84,71
1817,41,96
1817,41,96
1817,41,96
1817,41,96
2226,66,61
324,87,93
2551,54,54
1548,76,81
677,89,80
2226,66,61
48,95
5,12,76
5,61,71
48,95
48,95
465,00,00
310,00,00
775,00,00
23,92,03
7894,56,09
300,00,00
165,00,00
465,00,00
43,93,71
6941,30,02
/ /
(` ] ) (` in 000)
31.03.2013
AS ON 31.03.2013
31.03.2012
AS ON 31.03.2012
37,91,06
41,84,92
ii) From Others
6991,98,62
6327,05,71
I- Total I-A
7029,89,68
6368,90,63
i) From Banks
ii) From Others
24730,40,43
21578,29,23
I- Total I-B
24730,40,43
21578,29,23
43,76,35
47,39,01
ii) From Others
91992,38,80
77838,53,25
I- Total I-C
92036,15,15
77885,92,26
TOTAL-I.
123796,45,26
105833,12,12
II-. ] II-A. DEPOSITS OF BRANCHES IN INDIA
123776,57,91
105833,12,12
19,87,35
TOTAL-II.
123796,45,26
105833,12,12
\ TOTAL SCHEDULE-3
123796,45,26
105833,12,12
3341,15,00
6,43,84
4,71,87
4857,65,59
5834,16,97
2920,53,30
2406,38,75
11125,77,73
8245,27,59
PARTICULARS
\ SCHEDULE - 3 :: ] DEPOSITS
I-. ] I-A. DEMAND DEPOSITS
i) From Banks
I-. \ ] I-B. SAVINGS BANK DEPOSITS
I-. ] I-C. TERM DEPOSITS

i) From Banks
II-. ] II-B. DEPOSITS OF BRANCHES OUTSIDE INDIA
\ SCHEDULE - 4 :: BORROWINGS
I. BORROWINGS IN INDIA
i) { From Reserve Bank of India
ii) From Other Banks
iii) ] Other Institutions & Agencies
(// -II / )
(Including Subordinated/IPDI/Upper Tier-II Debts/Bonds)
II. BORROWINGS OUTSIDE INDIA
\ TOTAL SCHEDULE- 4
233
/ /
PARTICULARS
\ SCHEDULE - 5 ::
OTHER LIABILITIES AND PROVISIONS
I. Bills Payable
II. ] () Inter Office Adjustment (Net)
III.\ ] Interest Accrued
IV.
Contingent Provisions Against Standard Assets
V. Deferred Tax Liability (Net)
VI. ( ) Others (Including Provisions)
\ TOTAL SCHEDULE-5
\ SCHEDULE - 6 :: {
CASH AND BALANCES WITH RESERVE BANK OF INDIA
I. ( ) Cash In Hand (Including Foreign Currency Notes)
II. { Balance with Reserve Bank of India
ii) In Other Accounts
\ TOTAL SCHEDULE -6
\ SCHEDULE-7:: \
BALANCES WITH BANKS & MONEY AT CALL & SHORT NOTICE
I. IN INDIA
I) Balances with Banks
) \ a) In Current Accounts
) b) In Other Accounts
Total
ii) \ Money at Call and Short Notice
) a).With Banks
) b) With Other Institutions
Total
Total-I
II. OUTSIDE INDIA
ii) ] In Other Deposit Accounts
iii) \ Money at Call and Short Notice
Total-II
\ TOTAL SCHEDULE-7
234
(` ] ) (` in 000)
31.03.2013
AS ON 31.03.2013
31.03.2012
AS ON 31.03.2012
647,21,83
116,73,20
673,63,35
498,45,79
583,50,00
53,97,67
2781,52,47
4182,95,17
406,50,00
90,25,97
2016,17,97
3685,03,08
696,37,78
469,93,78
5388,06,93
6084,44,71
5094,01,11
5563,94,89
249,57,20
114,25,64
363,82,84
444,59,23
1747,56,78
2192,16,01
119,14,22
119,14,22
482,97,06
779,19,46
31,12,08
810,31,54
3002,47,55
383,72,75
250,24,51
44,44,18
678,41,44
1161,38,50
154,83,39
152,38,23
307,21,62
3309,69,17
- \ SCHEDULES FORMING PART OF CONSOLIDATED BALANCE SHEET

(` ] ) (` in 000)
31.03.2013
AS ON 31.03.2013
31.03.2012
AS ON 31.03.2012
33201,85,96
26822,51,56
92,63,59
21,87,69
639,46,21
491,12,74
1444,57,88
843,99,42
40,02,69
58,49,63
2957,44,65
1839,00,73
38376,00,98
30077,01,77
II. INVESTMENTS OUTSIDE INDIA
Total
] (I II) Grand Total (I and II)
38376,00,98
30077,01,77
Gross Investments
38540,58,77
30103,88,11
164,57,79
26,86,34
38376,00,98
30077,01,77
PARTICULARS
\ SCHEDULE - 8 :: INVESTMENTS
I. INVESTMENTS IN INDIA
iii) Shares
v) /
Subsidiaries and/or Joint Ventures
vi) ( ], , \ )
Others (IDBI Deposits, I.V.Ps,Units of Mutual Funds etc.)
Total
: Less : Depreciation
\ TOTAL SCHEDULE-8
235
(` ] ) (` in 000)
PARTICULARS
\ SCHEDULE - 9 :: ADVANCES
I- I-A.Bills Purchased and Discounted
I-. ,
I-B.Cash Credits,Overdrafts and Loans
I-. I-C.Term Loans
Total
II-. (- )
II-A.Secured By Tangible Assets (Includes Advances against Book Debts)
II-. / II-B.Covered by Bank/Government Guarantees
II-. II-C.Unsecured Advances
Total
III-. III-A. ADVANCES IN INDIA
i) Priority Sector
ii) ] Public Sector
iii) Banks
iv) Others
Total
III-. III-B. ADVANCES OUTSIDE INDIA
-III Total
\ TOTAL SCHEDULE-9
\ SCHEDULE - 10 :: \ FIXED ASSETS
. A. TANGIBLE ASSETS
I. PREMISES
Opening balance at cost
] Additions during the year
Deletions/Deductions during the year
WDV at the end of the year
II. \ OTHER FIXED ASSETS
III. ] \ CAPITAL WORK IN PROGRESS
Value at the end of the year
. B. INTANGIBLE ASSETS
I. COMPUTER SOFTWARE
] Opening balance at cost
/ Depreciation/Amortization to date
II. Goodwill
\ TOTAL SCHEDULE-10
236
31.03.2013
AS ON 31.03.2013
31.03.2012
AS ON 31.03.2012
2089,14,89
1596,20,41
50523,70,79
45760,44,42
98373,30,10
42958,40,51
38668,36,82
83222,97,74
86735,93,73
4997,01,03
6640,35,34
98373,30,10
69431,36,65
3431,52,83
10360,08,26
83222,97,74
34621,93,81
7618,96,91
56132,39,38
98373,30,10
98373,30,10
98373,30,10
27659,47,75
7509,91,24
48053,58,75
83222,97,74
83222,97,74
83222,97,74
117,44,02
2,51,00
36,36,98
83,58,04
92,12,73
25,31,29
31,94,68
85,49,34
803,32,20
76,67,37
13,95,94
652,12,71
213,90,92
748,86,47
71,40,14
16,94,41
608,91,27
194,40,93
2,75,97
14,96,32
13,39,00
4,33,29
22,02,35
18,09,47
37,35,85
2,75,97
120,82,00
14,41,54
99
117,73,72
17,48,83
2,90,00
322,21,08
116,59,75
4,22,25
90,04,46
30,77,54
2,90,00
316,33,78

(` ] ) (` in 000)
PARTICULARS
31.03.2013
AS ON 31.03.2013
31.03.2012
AS ON 31.03.2012
\ SCHEDULE - 11:: OTHER ASSETS

I. ] () Inter Office Adjustment (Net)
II. \ ] Interest Accrued
III. / ( )
Tax Paid in Advance/Tax Deducted at Source (Net of Provision)
IV. Stationery & Stamps
V. () Deferred Tax Asset (Net)
61,87,66
93,48,23
996,65,78
732,65,26
1495,07,82
1107,93,63
7,65,32
6,55,81
VI. Others
680,70,34
833,70,57
3241,96,92
2774,33,50
233,39,16
329,57,95
32,72,14
126,58,26
752,18,25
977,08,25
8339,33,67
19309,60,96
10318,30,99
10378,58,12
VI. ,
Acceptances, Endorsements and Other Obligations
5578,42,67
6242,51,67
VII. \ Letter of Comfort
2358,57,26
2827,31,50
667,78,78
583,93,55
18,47,76
58,86,31
28299,20,68
40834,06,57
\ TOTAL SCHEDULE-11
\ SCHEDULE - 12 :: CONTINGENT LIABILITIES
I. ] ]
Claims against Bank not acknowledged as debts
II. ] Capital Commitments
III. Options & Derivatives
IV. Outstanding Forward Exhange Contracts
V. (]) Guarantees given on behalf of Constituents (Bgs)
) a) In India
) b) Outside India
VIII.]- Interest Rate Swaps

IX. () Disputed Tax Liability (Net)
X. ]
Other Items for which Bank is Contingently Liable
\ TOTAL SCHEDULE-12
237
- \ SCHEDULES FORMING PART OF CONSOLIDATED PROFIT & LOSS ACCOUNT

(` ] ) (` in 000)
PARTICULARS
31.03.2013
31.03.2012
\ SCHEDULE - 13 :: ] ] INTEREST EARNED

I. / ]/ Interest/Discount on Advances/ Bills
10327,05,13
9278,24,21
2535,44,23
1996,02,03
III. ] -
Interest on balances with Reserve Bank of India and Other Inter Bank Funds
89,70,72
75,77,43
IV. Others
19,85,93
11,84,22
12972,06,01
11361,87,89
I., ] Commission, Exchange and Brokerage
266,46,62
259,41,31
II. /() Profit/(Loss) on Sale of Investments
218,21,20
119,67,29
III. /() Profit/(Loss) on Redemption of Investments
(10,04,67)
31
47,88
1,04,07
102,69,60
61,28,76
4,59,65
5,92,13
VII. Insurance Premium
504,97,54
388,31,48
VIII. Miscellaneous Income
482,85,89
403,33,00
\ TOTAL SCHEDULE -14
1570,23,71
1238,98,35
II. Income on Investments
\ TOTAL SCHEDULE - 13
\ SCHEDULE - 14 :: OTHER INCOME
IV. ,
Profit on Sale of Land, Buildings and Other Assets
V. Profit on Exchange Transactions
VI. Income by way of Dividend
238
- \ SCHEDULES FORMING PART OF CONSOLIDATED PROFIT & LOSS ACCOUNT

(` ] ) (` in 000)
31.03.2013
31.03.2012
8548,35,36
6944,58,08
II. / ]
Interest on Reserve Bank of India/Inter Bank Borrowings
323,64,73
354,14,32
III. Others
279,23,45
279,22,68
9151,23,54
7577,95,08
1321,10,21
1176,77,88
147,43,39
124,19,99
III. Printing and Stationery
20,63,69
17,54,96
IV. \ Advertisement and Publicity
18,33,40
14,17,83
V. Depreciation on Banks Property
89,75,87
98,90,29
81,55
71,23
VII. ( )
Auditors Fees and Expenses (Including Branch Auditors fees and expenses)
15,08,17
14,89,78
VIII. Law Charges
13,48,36
15,37,93
IX. , Postages, Telegrams, Telephones etc.
32,69,30
29,77,00
X. - Repair and Maintenance
85,78,96
71,55,17
XI. Insurance
97,81,31
85,15,17
XII. Benefits Paid relating to insurance activity
527,64,56
361,24,21
XIII. Other Expenditures
262,84,12
215,32,01
2633,42,89
2225,63,45
PARTICULARS
\ SCHEDULE - 15 :: ] INTEREST EXPENDED
I. ] ] Interest on Deposits
\ TOTAL SCHEDULE -15

\ TOTAL SCHEDULE - 16 :: \ OPERATING EXPENSES
I. \ Payment to and Provisions for Employees
II. , ] Rent, Taxes and Lighting
VI. , DirectorsFees, Allowances and Expenses
\ TOTAL SCHEDULE - 16
239
4. ] \
\ . ] ]
] ] .
. ], , , ]
] .
) \
]
) ,
.
]
5.
. \
] ] .
. \
- - ]
/ ] ]
\ - ]
\ ]
/ ] ]
. /\ ,
\ ]
. \-
]
. -,
{ ] \
] ,
] . ]
]

] .
6.
.
.
i)
ii)
iii)
iv) \
v) /
vi)
)
i) (\)
ii) ()
iii) (\)
\ - 17 2012-13 --
1.
, ,
\
(
) ] /
\ .
2.
) ( / 3 )
i) ()
ii) ///
-- ] - ,
/ \,
() ] ' ' 21

iii) () ] '
' 23
' ' ''
iv) -
() ' ] '
27
v)
( ),
( )
1965
)
\
\ ]
3. ]
) ] , ]
\ ]
]
) ^
\
]
\ ] ]
) \
, \ ,
, - ]

240
SCHEDULE 17 - SIGNIFICANT ACCOUNTING POLICIES

FOR THE YEAR 2012-13 CONSOLIDATED
4. REVENUE RECOGNITION:
Income and Expenditure are accounted on accrual basis,
except that;
a. Interest on non-performing advances and non performing
investments is recognized as per norms laid down by
b. Interest on overdue bills, commission, exchange,
brokerage and rent on lockers are accounted on
realization.
c. Dividend is accounted when the right to receive the same
is established.
d. In case of suit filed accounts, related legal and other
expenses incurred are charged to Profit and Loss
account and on recovery the same are accounted as
income.
5. FOREIGN EXCHANGE TRANSACTIONS:
a. Income and Expenditure items are recorded at the
exchange rates prevailing on the date of transaction.
b. Monetary Assets and Liabilities are revalued at the
Exchange rate notified by FEDAI at the close of the year
and the resultant gain/loss is recognized in the Profit and
Loss account.
Forward exchange contracts are initially recorded at
exchange rate prevailing at the time of booking of the
contract. These are translated at the year end rates
notified by FEDAI and the resultant gain/loss is taken to
revenue.
c. Foreign Letters of Credit/Letters of Comfort and Letters of
Guarantee are recorded at the rates prevailing on the
date of entering into such commitment. Outstanding
items are restated at the rates notified by FEDAI as at the
close of the financial year.
d. Derivative contracts undertaken on back-to-back basis or
for hedging Bank's own foreign currency exposure are
and are reported at the closing rates at the Balance Sheet
date. The revenue in respect of these transactions is
recognized for the proportionate period till expiry of the
contract. In respect of contracts done on back to back
basis, the revenue on early termination of the contract is
recognized on termination.
6. INVESTMENTS:
a. Investments are classified and shown in Balance
Sheet under the following six heads:
i. Government Securities
ii. Other Approved Securities
iii. Shares
iv. Debentures and Bonds
v. Subsidiaries / Joint Ventures and
vi. Others.
b. Investments are further classified into the following
three categories:
i. Held to Maturity (HTM)
ii. Available for Sale (AFS)
iii. Held for Trading (HFT)
1. GENERAL:
The financial statements are prepared on historical cost
convention and on accrual basis of accounting , unless
otherwise stated, by following going concern assumption
and conform to the statutory provisions, Regulatory
guidelines, Accounting Standards, Guidance Notes issued
by the Institute of Chartered Accountants of India (ICAI), and
practices prevailing in the banking industry in India.
2. BASIS OF CONSOLIDATION:
a. Consolidated financial statements of the Group
(comprising of 1 subsidiary, 1 associate and 3 joint
ventures) have been prepared on the basis of:
i.
Audited accounts of Andhra Bank (parent).
ii. L i n e b y l i n e a g g r e g a t i o n o f e a c h i t e m o f
asset/liability/income/expense of the subsidiary with the
respective item of the parent, and after eliminating all
material intra group balances/transactions, unrealized
profit/loss, as per AS 21 Consolidated Financial
Statements issued by The Institute of Chartered
Accountants of India (ICAI).
iii. Accounting for investment in 'Associate' under the 'Equity
Method' as per AS 23 Accounting for Investment in
Associates in Consolidated Financial Statements issued
by The Institute of Chartered Accountants of India (ICAI).
iv. Consolidation of Joint ventures 'Proportionate
Consolidation' as per AS 27 Financial Reporting of
Interests in Joint Ventures issued by The Institute of
Chartered Accountants of India (ICAI).
v. The financial statements of India International Bank
Malaysia Berhad comply with the Malaysian Financial
reporting Standards (MFRS), International Financial
reporting Standards (IFRS) and the requirements of the
Companies Act,1965 in Malaysia.
b. The difference between cost to the group of its
investment in the joint venture and the group's portion of
the equity of the joint venture is recognized in the financial
statements as goodwill.
3. LIFE INSURANCE:
a. Premium is recognized as income when due from
policyholders. For unit linked business, premium income
is recognized when the associated units are created.
Premium on lapsed policies is recognized as income
when such policies are reinstated.
b. Reinsurance premium ceded is accounted for at the time
of recognition of the premium income in accordance with
the terms and conditions of the relevant treaties with the
re-insurer. Impact on account of subsequent revisions to
or cancellations of premium are recognized in the year in
which they occur.
c. Acquisition cost is expensed in the period in which they
are incurred. Acquisition costs mainly consist of
commission to insurance intermediaries, medical costs,
policy printing expenses, stamp duty and other related
expenses to source and issue the policy.
241
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242
c.
i)
a.
b.
ii)
a.
b.
iii)
a.
b.
d.
e.
i.
ii.
iii.
Held to Maturity category comprises of securities

acquired with the intention to hold them up to maturity.
"Held for Trading" category comprises of securities
acquired with the intention of trading. "Available for Sale"
securities are those which are not covered under either of
the above two categories. Investments in Subsidiaries
/Associate/Joint ventures are classified as Held to Maturity.
Valuation:
The Investments are valued in accordance with Reserve
Bank of India guidelines on the following basis:Held to Maturity:
Investments classified under this category are stated at
acquisition cost net of amortization. The excess of
acquisition cost over the face value, if any, is amortized
over the remaining period of maturity.
Any diminution, other than temporary in nature, in the
value of investments is determined and provided for each
investment individually.
Available for Sale:
Investments classified under this category are marked to
market on quarterly basis and valued as per Reserve
Bank of India guidelines at the market rates available on
the Balance Sheet date from trades/quotes on the Stock
Exchanges, prices/yields declared by the Fixed Income
Money Market and Derivatives Association of India
(FIMMDA). Unquoted securities are also valued as per
the Reserve Bank of India guidelines.
The net depreciation under each of the six heads is fully
provided for whereas the net appreciation, if any, is
ignored. The book value of the individual securities does
not undergo any change after marking to market.
Held for Trading:
Investments classified under this category are valued at
market price based on market quotations, prices/yields
declared by FIMMDA at the end of every month.
The net depreciation under each of the six heads is fully
provided for whereas the net appreciation, if any, is
ignored. The book value of the individual securities does
not undergo any change after marking to market.
Prudential Norms:
The identification of non performing investments and
provision made thereon is as per Reserve Bank of India
guidelines.
Profit / Loss on Sale of Investments:
Profit or loss on sale of investments is recognized on the
value dates on the basis of weighted average cost.
Premium on redemption of Debentures/ Bonds is
recognized on the date of redemption.
Profit on sale of investments held in Available for Sale
and Held for Trading categories is recognized in the
Profit and Loss Account.
Profit on sale of investments in Held to Maturity
category is first taken to the Profit and Loss account and
an equivalent amount of profit is appropriated to the
Capital Reserve (net of taxes and amount required to be
transferred to Statutory Reserve).
iv. Loss on sale of investments in all the three categories is

recognized in Profit and Loss Account.
f. General:
i.
Purchase and sale of transactions in Government

Securities are recorded on the date of settlement.
ii. a) Transfer of scrips from AFS/HFT category to HTM

category:
Transfer is made at the lower of book value or market
value. In cases where the market value is higher than
the book value at the time of transfer, the appreciation
is ignored and the security is transferred at book
value. In cases where the market value is less than
the book value, the provision against depreciation
held against this security (including the additional
provision, if any, required based on valuation done on
the date of transfer) is adjusted to reduce the book
value to the market value and the security is
transferred at the market value.
b) In case of transfer of securities from HTM to AFS/HFT
category:
If the security originally placed under HTM category;
- is at a discount, it is transferred to AFS/HFT category
at the acquisition price/ book value.
-is at a premium, it is transferred to AFS/HFT category
at the amortized cost.
After transfer in both the above cases, these
securities are immediately re-valued and resultant
depreciation, if any, is provided.
c) In case of transfer of securities from AFS to HFT
category or vice-versa, the securities are not revalued on the date of transfer and the provision for the
accumulated depreciation, if any, is transferred to the
provision for depreciation against the HFT securities
and vice-versa.
iii. Upfront fee / Incentives on subscription of securities in
HTM / AFS / HFT categories are reduced from the cost of
securities and such incentives received after sale of
securities is credited to Profit and Loss account.
iv. Brokerage, Commission, Security Transaction tax and
Stamp Duty paid in connection with the acquisition of
securities are treated as revenue expenditure.
7.a. INTEREST RATE SWAPS: (Hedging)
i.
Income on continuing swap transactions is recognized on

accrual basis except the swap designated with an asset
or liability that is carried at lower of cost and market value
in the financial statements. In that case, the swap is
marked to market with the resulting gain or loss recorded
as an adjustment to the market value or designated asset
or liability.
ii. Gains/ losses on terminated swap transactions are

recognized when the offsetting gain or loss is recognized
on the designated asset or liability. Thus, the gain or loss
on the terminated swap is deferred and recognized over
the shorter of the remaining contractual life of the swap or
the remaining life of the designated asset/liability.
243
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1961 36(i) (viii)

12.
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244
Incentive Scheme, Ex-gratia to retirees and Relocation of

expenses on exit are recognized on the basis of actuarial
valuation made as at the end of the year.
b. INTEREST RATE SWAPS: (Trading)

i. Trading swaps are marked to market with changes
recorded in the Profit and Loss account;
ii. Income and expenses relating to these swaps are
recognized on the settlement date;
iii. Fee is recognized as income or expenses as the case
may be;
iv. Gains or losses on the termination of the swaps are
recorded immediately as income or expenses on such
termination.
8. ADVANCES:
a) Advances are classified in accordance with the
Prudential Norms issued by Reserve Bank of India.
i. Advances are classified into standard, sub-standard,
doubtful and loss assets borrower-wise.
ii. Provisions are made for non performing assets in
accordance with the RBI Guidelines, and additional
provisions as assessed.
iii. General provision is made for standard assets.
b) Advances stated in the Balance Sheet are net of
provisions made for Non Performing Assets
c) Partial recoveries in Non Performing Assets are
apportioned first towards charges and interest, thereafter
towards principal with the exception of non performing
advances involving compromise settlements in which
case the recoveries are first adjusted towards principal.
9. FIXED ASSETS:
a) Premises and other Fixed Assets are stated at historical
cost net of depreciation.
b) DEPRECIATION
i. Depreciation on Premises and on other Fixed Assets
except Computers and ATMs is provided on written down
value method at the rates specified in Schedule XIV of the
Companies Act 1956.
ii. The depreciation on Computers and other Peripherals is
provided @ 33.33 % on straight line method.
iii. Depreciation on ATMs is provided on straight line method
based on the estimated useful life of seven years.
c) AMORTIZATION:
i. Premium paid for acquisition of leasehold land for a
period less than 60 years and cost of the buildings
constructed thereon is amortized over the period of
lease.
ii. The cost of Software is treated as intangible asset and
the same is amortized over its estimated useful life of five
years.
10. EMPLOYEES BENEFITS:
a) Short Term Benefits:
Short-term compensated absences are recognized as an
expense on an undiscounted basis in the Profit & Loss
account of the year in which the related service is
rendered.
b) Long Term Benefits:
Other Long Term Benefits such as Leave Encashment,
Sick Leave, LFC/LTC availment/encashment, Employee
c) Post Employment Benefits :

i)
Defined Contribution Plans: Defined Contribution Plans

such as Provident / Pension fund are recognized as an
expense and charged to the Profit &Loss account.
ii) Defined Benefit Plans

(a) Gratuity:
The employees Gratuity Fund Scheme is funded by the
Bank and managed by a separate trust who in turn
manages their fund through approved schemes of Life
Insurance Company. The present value of the Bank's
obligations under Gratuity is recognized on the basis of
an actuarial valuation as at the year end and the fair
value of the Plan assets is reduced from the gross
(b) Pension:
The employees' Pension Fund is funded by the Bank and
is managed by a separate trust. The present value of the
Bank's obligations under Pension is recognized on the
basis of an actuarial valuation as at the year end and the
fair value of the Plan assets is reduced from the gross
(c) Amortization:
The additional liability/expenditure arising consequent
upon the reopening of Pension Option to the employees
of the bank and enhancement in gratuity limit pursuant to
amendment to the Payment of Gratuity Act, 1972 is being
amortized equally over a period of five years beginning
with the financial year 2010-11.
11. PROVISION FOR TAXATION:
a) Provision for tax is made for both Current and Deferred
Taxes.
b) Deferred tax assets and liabilities arising on account of
timing differences and which are capable of reversal in
subsequent periods are recognized using the tax rates
and laws that have been enacted or substantively
enacted as of balance sheet date.
c) Deferred tax assets are not recognized unless there is
virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets will
be realized.
d) Special reserve: Revenue and other Reserves include
Special Reserve created under section 36(1)(viii) of the
Income Tax Act,1961.The Board of Directors of the Bank
has passed a resolution approving creation of the reserve
and confirming that there is no intention to make
withdrawal from the Special reserve.
12. IMPAIRMENT OF ASSETS:
An assessment is made at each balance sheet date
whether there is any indication that an asset is impaired. If
any such indication exists, an estimate of the recoverable
amount is made and impairment loss, if any, is provided for.
245

]
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14.

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246
13. Provisions, Contingent Liabilities and Contingent

Assets :
Such obligations are recorded as Contingent Liabilities.

These are assessed at regular intervals and only that Part
of the obligation for which an outflow of resources
embodying economic benefits is probable, is provided
for, except in the extremely rare circumstances where no
reliable estimate can be made.
13.1. In conformity with AS.29 Provisions , Contingent

Liabilities and Contingent Assets issued by the Institute
of Chartered Accountants of India, the Bank recognizes
provisions only when it has a present obligation as a
result of a past event.
13.3. Contingent Assets are not recognized in the financial

statements.
It is probable that an outflow of resources embodying

economic benefits will be required to settle the obligation,
and when a reliable estimate of the amount of the
obligation can be made.
14. NET PROFIT :

The Net Profit disclosed in the Profit and Loss account is
after:-
13.2. No provision is recognized for :
(a) Provision for depreciation on Investments.
i.
(b) Provision for Taxation.
any possible obligation that arises from past events and

the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Bank; or
(c) Provision on Loan Losses

(d) Provision on Standard Assets.
ii. any present obligation that arises from past events but is
not recognized because
(e) Provision for Non-performing investments

(f) Other usual and necessary provisions.
a. It is not probable that an outflow of resources embodying

economic benefits will be required to settle the obligation
or
15. SUBSIDIARY Andhra Bank Financial Services Ltd.,

For Accounting Policies of subsidiary, reference may be
made to Note No. 2 of financial statements of Andhra
Bank Financial Services Limited.
b. A reliable estimate of the amount of obligation cannot be

made.
247
\- 18
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-2012-13
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(%)
100.00
35.00
30.00
26.02
25.00
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248
E. The Subsidiary, Associate and 3 Joint Ventures are following

Accounting Policies consistently as per the prevalent law
and practice, which are different from Parent Bank in a few
cases because of respective business requirements. In the
opinion of the management the impact of the same is not
material which requires adjustment in Consolidated
Financial Statements.
Schedule 18
NOTES ON ACCOUNTS TO CONSOLIDATED
FINANCIAL STATEMENTS 2012-13
A. List of Subsidiary/Associate/Joint Ventures
considered for preparation of consolidated financial
statements:
F. The Book value of the investment of Andhra Bank in Andhra

Bank Financial Services Ltd., has been reduced to 'Nil' due to
depreciation on investments. Therefore, the share capital of
ABFSL held by Andhra Bank, amounting to ` 5 crores has
been reflected as Capital Reserve in the consolidated
financial statements.
The 1 Subsidiary, 1 Associate and 3 Joint Ventures

(which along with Andhra Bank, the parent, constitute the
group) considered in the preparation of the consolidated
financial statements, are
S
No.
Entity
a)
Subsidiary :
1.
Andhra Bank Financial Services

Limited
Country of
Incorporation
Groups
Stake (%)
India
100.00
India
35.00
b)
Associate:
1.
Chaitanya Godavari
Grameena Bank
c)
Joint Ventures:
1.
India First Life Insurance

Company Limited
India
30.00
2.
ASREC (India) Limited
India
26.02
3.
India International Bank

(Malaysia) BHD
Malaysia
25.00
G. Accounting for investment in RRB:

(i) In conformity with the guidelines issued by the Reserve
Bank of India the investment in Regional Rural Bank
(RRB) namely Chaitanya Godavari Grameena Bank to
the extent of 35% of the share capital is valued as per
equity method as prescribed under the Accounting
Standard 23 issued by the Institute of Chartered
Accountants of India in line with methods followed in
previous year. The value of investment in associate has
been adjusted due to increase in net assets of the
associate by ` 37.42 crores.
The RRB is duly audited by other auditors for the year
ending on 31st March 2013.
(ii) During the year 2012-13, other Regional Rural Bank
sponsored by Parent, Andhra Bank viz., Rushikulya
Gramya Bank has been merged with another Grameena
Bank. Accordingly, the consolidated statement as on 3103-2013 does not include the position of investments
made by the parent in the said Bank whereas 31-032012 figures include the same.
B. Basis of preparation of Consolidated Financial

statements.
The Consolidated Financial Statements (CFS) of the Parent
Bank and its subsidiary, associate and Joint Ventures are
prepared to comply in all material respects with applicable
statutory / regulatory provisions, Accounting Standards,
Generally Accepted Accounting Principles and practices
prevailing in India, unless otherwise stated. The financial
statements of India International Bank Malaysia Berhad
comply with the Malaysian Financial reporting Standards
('MFRS), International Financial reporting Standards
(IFRS) and the requirements of the Companies Act,1965 in
Malaysia.
H. Accounting for investment in Joint Ventures:

(i) The investments in joint ventures have been accounted
as per Accounting Standard 27 with regard to the
companies India First Life Insurance Co. Ltd, ASREC
(India) Limited and India International Bank (Malaysia)
BHD under 'Proportionate Consolidation method'. The
difference between the amount invested and the nominal
value of the investment in the equity of the company has
been recognized as goodwill.
(ii) Joint Ventures have been duly audited by their respective
auditors.
C. Consolidation Procedure:
The Consolidated Financial Statements are prepared in
accordance with the Accounting Standard (AS-21)
Consolidated Financial Statements, (AS-23) Accounting
for Investment in Associates in Consolidated Financial
Statements and (AS-27) Financial Reporting of Interests in
Joint Ventures issued by the Institute of Chartered
Accountants of India (ICAI) and the guidelines issued by the
Reserve Bank of India on preparation of Consolidated
Financial Statements. The financial statements of the Bank
and its subsidiary are combined on a line by line basis by
adding together like sum of assets, liabilities, income and
expenses, after eliminating material intra group balances /
transactions and resulting unrealized profit / loss.
(iii) Financial statements of India International Bank

(Malaysia) BHD which are considered for incorporation
pertains to the year ended 31st December, 2012 have
been approved by the Board of Directors of India
International Bank (Malaysia) and final approval for the
same from the Bank Negara Malaysia is awaited.
(iv) The difference arising on account of translation of book
value of investment in overseas joint venture at the
applicable exchange rate has been treated as 'Foreign
Currency Translation Reserve'.
(v) The following Items in consolidated financial statements
as on 31-03-2013 pertain to Indian International Bank
(Malaysia) BHD which are based on a different
accounting policy i.e., Malaysian Financial Reporting
Standards, International Financial Reporting Standards.
D. The financial statements of subsidiary, are adjusted,

wherever necessary, to conform to the accounting policies of
the Bank.
249
\

\

] ]

\ ]
\
/()
(. )
\

3
5
6
1.105
0.126
3.463
19.87
2.26
62.28
7
10
11
12
13
14
15
16
5.006
0.399
0.007
0.040
0.123
0.001
0.008
0.191
(0.076)
90.04
7.17
0.12
0.72
2.21
0.02
0.15
3.44
(1.36)
^. -
(. )

31.03.2013 31.03.2012
()
2.90
2.90

2.90
2.90
. (
\ )
2010-11 , {
.. . . 80/ 21.04.018 09 2011
\ \
\ \ .3.50
.10.00
31 \ 2012
.379.99 .93.66 , ]
1/5 .33 , ] \
1/5 , \
.253.33 ]
1 2012
.50
].
(. )
. ] ]
2012-13 2011-12
(I) ] I + II ]
11.62
13.09
(ii) ] I ]
8.42
8.96
(iii) ] II ]
3.20
4.13
(iv)

58.00
58.00
(V) II ]
]
. ] (.10/-
) ] ( ) (.) 22.96 23.85

(. )
1284.54 1334.49
( )
55.96
55.96
] (.)
22.96
23.85
250
(` in crore)
Particulars
Deposits
Other Liabilities
Cash
Balances With Banks & Money At Call
& Short Notice
Fixed Assets
Other Assets
Contingent Liability
Interest Earned
Other Income
Interest Expended
Operating Expenses
Profit/(Loss)
Schedule
Ringgit
Malaysia
Indian
Rupees
3
5
6
1.105
0.126
3.463
19.87
2.26
62.28
7
10
11
12
13
14
15
16
5.006
0.399
0.007
0.040
0.123
0.001
0.008
0.191
(0.076)
90.04
7.17
0.12
0.72
2.21
0.02
0.15
3.44
(1.36)
J. The breakup of Goodwill arising on the acquisition

of Joint Venture is as under:
(` in crore)
Name of the Joint Venture
31.03.2013 31.03.2012
ASREC (India) Limited
2.90
2.90
Net Goodwill
2.90
2.90
K. Prudential Regulatory treatment (reopening of
Pension option and enhancement of gratuity)
During the year 2010-11, the Parent Bank opted for
amortization of additional liability arising on account of
exercise of second pension option by the employees and
revision of gratuity limit from ` 3.50 lacs to ` 10 lacs as per the
Payment of Gratuity Act over a period of five years pursuant
to permission given by Reserve Bank of India vide its circular
no. DBOD.BP.BC.80/21.04.018/2010-11 dated 09th of
February, 2011. Out of the amount of ` 379.99 cr., carried
forward as on 31st March, 2012 an amount of ` 93.66 cr.,
being 1/5th of the additional pension liability and ` 33 cr.,
being 1/5th of additional liability on account of gratuity has
been charged off to the Profit and Loss account for the current
year and balance amount of ` 253.33 cr has been carried
forward.
Provision of ` 50 crore has been made towards wage revision
arrears effective from 1st November, 2012 pending wage
negotiation
I. Additional disclosures for consolidated financial

statements are as under:
(` in crore)
Particulars
2012-13 2011-12
A. Capital to Risk Adequacy Ratio
(i) Capital adequacy ratio Tier I +
Tier II capital
11.62
13.09
(ii) Capital adequacy ratio Tier I capital
8.42
8.96
(iii) Capital adequacy ratio Tier II capital
3.20
4.13
(iv) Percentage of the shareholding of the
Government of India in Andhra bank
58.00
58.00
(v) Amount of subordinated debt raised by
Andhra Bank as Tier-II capital during the year
B. Earnings per share (face value of ` 10/- each)

Earnings per Share (Basic and diluted) (`)
22.96
23.85
Calculation of Basic E P S
Net Profit (` in crores)
1284.54 1334.49
Weighted Average No of Shares (in crores)
55.96
55.96
Basic Earnings per Share (`)
22.96
23.85
251
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252
31.03.2013
31.03.2012
2795.00
6303.72
3768.65
1674.93
14542.30
14542.30
2060.55
5808.81
3590.31
1141.19
12600.86
12600.86
554.16
1249.82
747.20
213.55
2764.73
996.91
1767.82
483.28
1284.54
475.50
1340.46
828.51
162.72
2807.19
990.73
1816.46
481.97
1334.49
37632.40
64195.44
33020.84
2417.40
10293.24
147559.32
29628.90
52795.13
26809.01
4337.76
11693.51
125264.31
2920.53
44465.45
63206.53
17371.02
11141.65
139105.18
8454.14
147559.32
2406.39
33117.89
54260.54
19170.22
8808.39
117763.43
7500.88
125264.31
L.Consolidated Business Segments:

CONSOLIDATED SEGMENT WISE RESULTS
(`in crore)
Part A
Year Ended
S No. Business Segments

1
2795.00
2060.55
6303.72
5808.81
(c) Retail Banking
3768.65
3590.31
1674.93
1141.19
14542.30
12600.86
Income from Operations
14542.30
12600.86
Segment Results
(a) Treasury
(c) Retail Banking
554.16
475.50
1249.82
1340.46
747.20
828.51
213.55
162.72
2764.73
2807.19
996.91
990.73
1767.82
1816.46
483.28
481.97
1284.54
1334.49
(a) Treasury
37632.40
29628.90
64195.44
52795.13
(c) Retail Banking
33020.84
26809.01
2417.40
4337.76
10293.24
11693.51
147559.32
125264.31
2920.53
2406.39
44465.45
33117.89
(c) Retail Banking
63206.53
54260.54
17371.02
19170.22
(e) Unallocable Liabilities
11141.65
8808.39
139105.18
117763.43
8454.14
7500.88
147559.32
125264.31
Total
Less :(I) Other Un-allocable Expenditure
Total Profit Before Tax
Income tax and other taxes paid
Net Profit
Segment Assets
(d) Other Banking Business

(e) Unallocable Assets
Total Assets
4
Audited
(a) Treasury
Less: Inter Segment Revenue
31.03.2012
Audited
Segment Revenue
Total
31.03.2013
Segment liabilities
(a) Treasury
Total
Capital & Reserves
Total Liabilities
Part B Geographic Segments: There is only one segment - Domestic Segment
(Compiled by the Management and relied upon by the Auditors)
253
. ( 22):
31.03.2013 -
. :
( )
( )

" " - 2012-11 2011-12
(i)
97.69 45.02
(ii) ]
615.12 481.68
(iii)
177.00 100.00
(iv)
519.56 462.79
(v)
(36.28) 19.18
(v) :
)
42.28 64.82
)
303.95 60.08
1480.19 1472.70
[. \ / , 3
, .7894.56 , ]
.7881.60 .12.96 ,
3 ( .6941.30
] .6919.81 .21.49
, )
. -
\ \
()
] , ]
, \
. ()

. ] \
/:/:
31 \ 2013
31 \ 2012

(1) , ] - 16.31
- 28.31
( 22)

(2) - , 1961
11.80
- 4.72
/
(3)
- 82.09
-- 123.29
\

28.11 82.09 33.03 123.29
- , 1961 36(i)(viii)
()
\ - 1961
]
254
M. Accounting for taxes on income (AS 22):
N. Provisions and Contingencies:

(` in crore)
The major components as on 31.03.2013 are as follows:(` in crore)

Timing Difference
31st March-2013
DTA
DTL
DTA
(1) Provision created in books

but not claimed as deduction
16.31
28.31
(2) Excess/Less Depreciation

claimed as per Income Tax
Act, 1961
11.80
4.72
--
(3) On account of amortization

of additional liability due to
re-opening of pension option
and revision in ceiling of gratuity
Total
28.11
82.09
82.09
Breakup of Provisions and Contingencies

shown under the head Expenditure in Profit
and Loss Account
31st March-2012
--
33.03
DTL
(i) Depreciation in value of Investments

(ii) Non Performing Assets
123.29
2012-13
2011-12
97.69
45.02
615.12
481.68
(iii) Standard Assets
177.00
100.00
(iv) Taxes
519.56
462.79
(v) Deferred Tax
(36.28)
19.18
a) Restructured advances
42.28
303.95
b) Other provisions
64.82
60.08
1480.19
1472.70
(vi) Other provisions and contingencies:
123.29
TOTAL
No Provision for Deferred Tax Liability (DTL) on deduction

claimed under Section 36(1)(viii) of the Income Tax Act,
1961 has been made as the same is considered as a
Permanent Difference consequent to the decision taken by
the Bank, not to withdraw the Reserves created under the
provisions of the Income Tax Act,1961.
O. The consolidated Reserves of the group after reckoning parents share of

accumulated profit / loss of Subsidiary, Associate and 3 Joint Ventures
amount to ` 7894.56 crore of which ` 7881.60 relate to parent and the
balance ` 12.96 crore relates to Subsidiary, Associate and 3 Joint
Ventures (Previous year ` 6941.30 crore of which ` 6919.81 crore relate
to the parent and the balance ` 21.49 crore relates to Subsidiary,
Associate and 3 Joint Ventures)
P. Additional statutory information disclosed in individual financial statements
of the parent and subsidiary having no bearing on the true and fair view of
the Consolidated Financial Statements and also the information pertaining
to the items which are not material have not been disclosed in the
Consolidated Financial Statements in the view of the general clarification
issued by the Institute of Chartered Accountants of India (ICAI)
Q. Please refer to Notes on Accounts of Andhra Bank Financial Services
Limited. (ABFSL)
R. Previous years figures have been regrouped/re-classified/rearranged
wherever necessary to confirm to current years figures.
255
31 \, 2011
(` ] )
31.03.2013

88,736,406
72,458,321
(16,278,085)

/
\

]
] ]

\ \
\ ]
] / ()
/ ()
() /
() /
() /
/ ()
\ ]

\ ()

\ () /
()

] ]
( )
()
/ ()+()+ ( )
31.03.2012

105,738,259
88,736,406
(17,001,853)
17,638,833
897,587
2,792,140
4,788
21,323,772
18,154,318
989,029
2,792,152
10,407
21,925,092
179,633,314
28,805,014
(82,989,921)
(151,503,236)
(237,157)
5,645,602
677,388
(9,634,834)
(8,957,446)
136,900,143
6,055,351
(56,432,349)
(117,876,192)
1,042,591
6,413,354
(1,972,010)
(7,852,286)
(9,824,296)
(951,529)
(951,529)
(808,434)
(808,434)
(2,792,140)
(3,576,970)
(6,369,110)
(16,278,085)
(2,792,152)
(3,576,971)
(6,369,123)
(17,001,853)
. .

]

- 002413
(. )
^ (..018883)

-310100
(. )
^ (..051656)

31.05.2013

-004453
(]. )
^ (..024860)

-108959
( )
^ (..45239)
256

-004137
( )
^ (.. 205869)

-312063
( )
^ (..050531)
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
(` in 000)
Particulars
For the year ended

31.03.2013
For the year ended

31.03.2012
Opening balance of Cash and Cash equivalents
8873,64,06
10573,82,59
Closing balance of Cash and Cash equivalents
7245,83,21
8873,64,06
(1627,80,85)
(1700,18,53)
1763,88,33
1815,43,18
Net Increase(+) / Decrease (-) of Cash and Cash equivalents during the period
Cash Flow from Operating Activities
Net Profit before tax
Add: Depreciation on Assets
Add: Interest on Subordinated Debt
Less: Profit on Sale of Assets
Operating Profit before changes in Operating Assets and Liabilities
89,75,87
98,90,29
279,21,40
279,21,52
47,88
1,04,07
2132,37,72
2192,50,92
17963,33,14
13690,01,43
Adjustment for Changes in Operating Assets and Liabilities

Increase / (Decrease) in Deposits
Increase / (Decrease) in Borrowings
2880,50,14
605,53,51
(Increase) / Decrease in Investments
(8298,99,21)
(5643,23,49)
(Increase) / Decrease in Advances
(15150,32,36)
(11787,61,92)
(Increase) / Decrease in Other Assets
(23,71,57)
104,25,91
Increase / (Decrease) in Other Liabilities and Provisions
564,56,02
641,33,54
67,73,88
(197,20,10)
Cash Generated from Operations

Taxes Paid
(963,48,34)
(785,22,86)
Cash Flow from Operating Activities (A)
(895,74,46)
(982,42,96)
(Purchase) / Sale of Fixed assets
(95,15,29)
(80,84,34)
Cash Flow from Investing Activities (B)
(95,15,29)
(80,84,34)
Interest paid on Subordinated debts
(279,21,40)
(279,21,52)
Dividend paid (including tax on dividend)
(357,69,70)
(357,69,71)
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Cash Flow from Financing Activities (C)

Net Increase (+) / Decrease (-) in Cash flow during the period (A)+(B)+(C) )
(636,91,10)
(636,91,23)
(1627,80,85)
(1700,18,53)
B.A.PRABHAKAR

FRN:002413S

FRN:004453S

FRN:004137S
(R.PRAKASH)
FOR PATRO & CO

FRN:310100E
FOR C R SAGDEO & CO

FRN:108959W

FRN:312063E
(N. ANANDA RAO)

(SUMAN BOSE)
(INDRANATH NAG)
Place: Hyderabad
Date: 31.05.2013
257
5. ] ,
\
6. 5
, ] 31 \ 2013
.146299
.13957 ] .1856

1. , , (
) 31 \ 2013

]\ ]
7. ,
- , ] 31 \ 2013
.1260
.585 ]
\ - -
, ]
-
(i) 6 () -

(ii) 1 () , 1 ()
3 ()
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8. ,

()21, ` ', ()23
` '
() 27 ` '
{

2. , 1949
] ,

\,

9. , ] ,
]
(i)
]
\ ] 31 \ 2013
,
]

3.
]

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(ii)

,
;
4.
]\
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(iii)
\ \

10. , 1949
\
258
management, as well as evaluating the overall

presentation of the financial statements.
INDEPENDENT AUDITORS REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS
5. We believe that the audit evidence we have obtained is

opinion.
To
The Board of Directors,
Andhra Bank.
6. We have jointly audited the financial statements of the

Bank along with 5 other joint auditors, whose financial
statements reflect total assets of ` 146299 Crores as on
31st March 2013, and total revenue of ` 13957 Crores
and net cash outflows amounting to ` 1856 Crores for the
year then ended.
Report on the Financial Statements

1. We have examined the attached consolidated Balance
Sheet of Andhra Bank(the Bank), its subsidiary, associate
and joint ventures (the Group) as on 31st March, 2013,
and the consolidated Profit and Loss Account and the
consolidated Cash Flow Statement for the year then
ended in which are incorporated the:
i)
7. We did not audit the financial statements of its

Subsidiaries, Associate and Joint Ventures whose
financial Statements reflects total assets of ` 1260 Crores
as on 31st March, 2013, and total revenue of ` 585
Crores for the year then ended. These financial
statements have been furnished to us, and our opinion,
insofar as it relates to the amounts included in respect of
other entities, is based solely on the report of the other
auditors.
Audited accounts of the Bank audited by 6 (Six) Joint

Auditors including us.
ii) Audited accounts of 1 (one) subsidiary, 1 (one)

Associate and 3 (Three) Joint Ventures audited by
other auditors.
These financial statements are the responsibility of the
Andhra Bank's Management and have been prepared by
the management on the basis of separate financial
statements and other financial information of the different
entities in the Group. Our Responsibility is to express an
opinion on these financial statements based on our audit.
8. We report that the consolidated financial statements

have been prepared by the Bank's management in
accordance with the requirements of Accounting
Standard 21 - Consolidated financial statements,
Accounting Standard 23 - Accounting for investments in
Associates in consolidated Financial Statements and
Accounting Standard 27 - Financial Reporting of
Interests in Joint Ventures prescribed by the Institute of
Chartered Accountants of India and the requirements of
Reserve bank of India.
Managements Responsibility for the Financial Statements

2. Management is responsible for the preparation of these
financial statements in accordance with the Banking
Regulation Act, 1949. This responsibility includes the
design, implementation and maintenance of internal
controls relevant to the preparation of the financial
statements that are free from material misstatement,
whether due to fraud or error.
Opinion
9. In our opinion, as shown by books of the Bank, and to the
best of our information and according to the explanations
given to us:
Auditors Responsibility
(i) The Consolidated Balance Sheet, read with the notes

thereon is a full and fair Balance Sheet containing all
the necessary particulars, is properly drawn up so as
to exhibit a true and fair view of state of affairs of the
Bank and its subsidiary, associate and Joint ventures
as at 31st March, 2013 in conformity with accounting
principles generally accepted in India;
3. Our responsibility is to express an opinion on these

financial statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India.
Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free from material misstatement.
(ii) the Consolidated Profit and Loss Account, read with

the notes thereon shows a true balance of Profit, in
conformity with accounting principles generally
accepted in India, for the year covered by the
account; and
4. An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the
financial statements. The procedures selected depend
on the auditors judgment, including the assessment of
the risks of material misstatement of the financial
statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal
controls relevant to the Banks preparation and fair
presentation of the financial statements in order to design
audit procedures that are appropriate in the
(iii) the Consolidated Cash Flow Statement gives a true

and fair view of the cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
10. The Consolidated Balance Sheet and the consolidated
Profit and Loss Account have been drawn up in Forms A
and B respectively of the Third Schedule to the Banking
Regulation Act, 1949.
259
11. 1 5
( ) , 1980

\
()
()
]
/ ,
\
12. ,

() \ ]
]
]
]

- 002413
(. )
^ (..018883)

-310100
(. )
^ (..051656)

31.05.2013

-004453
(]. )
^ (..024860)

-108959
( )
^ (..45239)
260

-004137
( )
^ (.. 205869)

-312063
( )
^ (..050531)
11. Subject to the limitations of the audit indicated in

paragraph 1 to 5 above and as required by the Banking
Companies (Acquisition and Transfer of Undertakings)
Act, 1980, and subject also to the limitations of disclosure
required therein, we report that:
(b) The transactions of the Bank, which have come to our

notice have been within the powers of the Bank.
(c) The returns received from the offices and branches of the
Bank have been found adequate for the purposes of our
audit.
(a) We have obtained all the information and explanations

which to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found
them to be satisfactory.
12. In our opinion, the consolidated Balance Sheet, Profit and

Loss Account and Cash Flow Statement comply with the
applicable accounting standards.

FRN:002413S

FRN:004453S

FRN:004137S
(R.PRAKASH)
FOR PATRO & CO

FRN:310100E
FOR C R SAGDEO & CO

FRN:108959W

FRN:312063E
(N. ANANDA RAO)

(SUMAN BOSE)
(INDRANATH NAG)
Place: Hyderabad
Date: 31.05.2013
261
262
(o N N GN)
. , 5-9-11, , -500 004.

( ] )
, 22 ], 2013
] ______________
_______________________
______________________
/________________________________________ ____________________________________ ]
___________________________ ] _________________________________
/ ________________________________ _____________________________] ________________
] , 22 ], 2013 04.00 ] , , -500 004
/ / / / .
. 1/ ]

/
..................................................
( )
..................................................
.......................................................... .........................................................................
]
i) ] ,
)
) ] ] .
) .
ii) , ] ,
, , ] ]
] ]
iii)
) ( ) ] ,
) ] , , , , , .
, 5-9-11, , 500 004 \ , 16 ] 2013
5.00 ] ] ].
iv) ] .
v) ] .
vi) ] ].
vii) ]
.
viii) ] \ ].
263
(o N N GN)
Head Office: Dr. Pattabhi Bhavan, 5-9-11, Saifabad, Hyderabad 500 004.
FORM - B
PROXY FORM
(To be filled in and signed by the shareholder)
THIRTEENTH ANNUAL GENERAL MEETING, 22nd JULY 2013

Regd. Folio No._______________________
D.P.ID No._______________________
Client ID No._____________________
I/We _____________________________________ resident of ____________________________ in the district of

_____________________________ in the State of ___________________________ being a shareholder/s of
Andhra Bank hereby appoint, Shri/Smt. _____________________________________________ resident of
_______________________________ in the district of ________________________________ in the State of
____________________ or failing him / her, Shri / Smt.____________________________________ resident of
________________________ in the district of _______________ in the State of _______________as my/our proxy
to vote for me/us and on my/our behalf in the Thirteenth Annual General Meeting of the Shareholders of Andhra
Bank to be held on Monday, the 22nd July 2013 at 4.00 pm at Ravindra Bharathi, Saifabad, Hyderabad-500004, and
at any adjournment thereof.
Please affix
` 1/Revenue
Stamp
Signature of first named/sole Shareholder
Name _____________________________
(in Block letters)
Signature of Proxy_______________________Address________________________________________________
INSTRUCTIONS FOR SIGNING AND LODGING THE PROXY FORM
i)
No instrument of proxy shall be valid unless,

a) in the case of an individual shareholder, it is signed by him/her attorney, duly authorised in writing;
b) in the case of joint holders, it is signed by the shareholder first named in the register of members OR his/her attorney, duly
authorised in writing;
c) in the case of a body corporate signed by its officer or an attorney duly authorised in writing;
ii) An instrument of proxy shall be sufficiently signed by any shareholder, who is, for any reason, unable to write his / her name, if his/her
mark is affixed thereto and attested by a Judge, Magistrate, Registrar or Sub-Registrar of Assurances or other Government Gazetted
Officer or an Officer of Andhra Bank.
iii) The Proxy together with
a) the power of attorney or other authority (if any) under which it is signed, or
b) a copy of the power of attorney or authority, certified by a Notary Public or a Magistrate, should be deposited at Andhra Bank,
Investor Services Section, Head Office, Dr.Pattabhi Bhavan, 5-9-11, Saifabad, Hyderabad 500004, not later than FOUR DAYS
before the date of Annual General Meeting i.e. on or before the closing hours i.e.,5.00 P.M Tuesday 16th July 2013.
iv) No instrument of proxy shall be valid unless it is duly stamped.
v) An instrument of Proxy deposited with the Bank shall be irrevocable and final.
vi) In the case of an instrument of proxy granted in favour of two grantees in the alternative, not more than one form shall be executed.
vii) The shareholder, who has executed an instrument of proxy, shall not be entitled to vote in person at the Annual General Meeting to
which such instrument relates.
viii) No person shall be appointed as duly authorised representative or a proxy who is an officer or an employee of Andhra Bank.
264
(o N N GN)
. , 5-9-11, , -500 004.

\ ATTENDANCE SLIP
( ] to be surrendered at the time of Entry)
: 22 ], 2013
Date
: : 04.00 ]
Time
: , , - 500 004
Place
: Ravindra Bharathi, Saifabad, Hyderabad-500 004

Signature of the Shareholder
/
Proxy / Representative present
: 22nd July, 2013

: 04.00 P.M.
Regd. Folio
DP ID & Client ID
( { if not dematerialised)
Name of the Shareholder
Number of Shares
( { if dematerialised
(o N N GN)
. , 5-9-11, , -500 004.

~ ~
ENTRY PASS
(~ ~ to be retained throughout the meeting)
~
Regd. Folio
DP ID & Client ID
( ~ if not dematerialised)
( ~ if dematerialised)
~ ~ Name of the Shareholder
~ Number of Shares
~/~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~. ~ / ~ .
~ ~ ~ - ~ .
Shareholders / proxy or authorised representative of shareholders are requested to produce the above attendance slip, duly signed in accordance
with their specimen signatures registered with the Bank, alongwith the entry pass, for admission to the venue. The admission will, however, be
subject to verification/checks, as may be deemed necessary. Under no circumstances, any duplicate attendance slip will be issued at the entrance
to the meeting.
P.S. ~ ~ ~ / ~
No gifts/gift coupons will be distributed at the meeting.
265
NOTES
266

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ANNUAL REPORT 2012-2013

/ From the Chairman & Managing Director

/ Notice of Annual General Meeting

II III ( ) / Disclosures Under Pillar-III of Basel-II

/ Corporate Governance Report

/ Profit and Loss Account

/ Significant Accounting Policies

/ Cash Flow Statement

/ Our Progress at a glance

/ Key Performance Ratios

/ / Attendance Slip / Entry Pass

NAG & ASSOCIATES

2011-12 .1,90,535 [ 17.5%

ANNUAL REPORT 2012-2013

Chairman & Managing Directors Letter to Shareholders

The performance highlights of your Bank for the Financial

Total Deposits increased to Rs.1,23,796 Crore from

Cost of Deposits stood at 7.87%.

Gross Bank Credit increased to Rs.1,00,138 Crore

Credit Deposit Ratio stood at 80.94% compared to

Net Interest Margin stood at 3.21%.

Non-Interest Income stood at Rs.1,047 crore.

Net Profit for 2012-13 stood at Rs.1,289 Crore.

Gross NPAs to Gross Advances Ratio stood at

Net NPAs to Net Advances Ratio stood at 2.45%.

Capital Adequacy Ratio stood at 11.76% under

Return on Average Assets stood at 0.99%.

Net Profit per Employee stood at Rs.7.80 lakh.

Average Business per Employee stood at Rs.12.22

During FY 2012-13, your Bank has taken the following I.T.

Gross Bank Credit of SCBs recorded a growth rate of 14.1%

Total Business increased from Rs.1,90,535 Crore in

CASA Deposits increased to Rs.31,759 Crore from

It gives me great pleasure to inform that your Bank has

During the Financial Year 2012-13, Banking Industry

Cheque Deposit Machines have been installed during

Bunch Note Acceptor machines have been deployed at

100 self-service passbook printing kiosks have been

Bank has launched IMPS P2A (Person to Account)

IMPS facility has been extended to the customers

Security features for Internet Banking transactions have

Due to the confidence and support placed by the

ANNUAL REPORT 2012-2013

Based on the evaluation of 503 Rural Self Employment

Your Bank is committed towards delivering best services to

In the NFS Operational Excellence Awards 2012 (National

The Board of Directors of the Bank have recommended a

A Govt.of India Undertaking

2012-13 50% (.5.00

ANNUAL REPORT 2012-2013

A Govt.of India Undertaking

To declare dividend on Equity Shares.

A MEMBER ENTITILED TO ATTEND AND VOTE AT THE

In order to be effective, the proxy form must be

The Board of Directors have recommended a dividend

No person shall be entitled to attend or vote at the

Dividend payment by way of Electronic Clearing

Attendance slip cum entry pass:

8. Dividend payment by way of National Electronic

ANNUAL REPORT 2012-2013

have to update their bank account details by furnishing

(ii) Unpaid/Unclaimed Dividends

Updating of any change in address of the