Performance Highlights - Working results  2005-2006

Audited Financial Results | Audited Segmental Results | Unaudited Financial Results for the Nine months period ended 31st December, 2006

1. The working results for the year ended 31st March, 2006 have been arrived at after considering
   provisions for Bonus, Income Tax, Wealth Tax, Fringe Benefit Tax, provision for Leave Encashment, Gratuity and Pension on the basis of actuarial valuation, after considering RBI guidelines with regard to Pension and also provisions for NPAs, Standard Assets and Investment Depreciation on the basis of prudential norms issued by the Reserve Bank of India.

2. In terms of RBI guidelines, a sum of Rs 47.33 crore has been transferred to Profit & Loss account,
   out of Inter Branch Transactions Blocked Account upto 31.03.1999. Based on expert opinion, provision for tax on such credit is not considered necessary.

3. During the year, the Bank has introduced an “Exit Scheme” for employees and 86 applications have
   been accepted by the Bank upto 31st March 2006 .The liability on account of accepted applications amounting to Rs 14.59 crore has been charged to the Profit & Loss account.

4. Hitherto, the recoveries in doubtful and loss category of advances were appropriated first towards
   interest and then towards principal respectively. W.e.f. 01.04.2005, the order of appropriation of recoveries in aforesaid advances, has been reversed .As a result of change, there has been reduction
   of Rs 9.60 crore in Gross NPAs and Rs 9.60 crore in Interest Income for the year. Consequently, Provision for NPAs and Net Profit for the year stand reduced by Rs. 4.80 Crore and Rs. 3.20 crore respectively.

5. The method for amortization of premium/discount on investments in HTM (Held to Maturity)
   category has changed from straight line method to constant yield method resulting in less amortization of Rs 24.87 crore with the corresponding increase in operating profit by similar amount.

6. The Board of Directors have declared dividend of Rs.65/- per share (Face Value of share Rs.100/-)
   for the year ended 31st March, 2006 (last year Rs.100/- per share).

7. During the year Bank has raised Rs.300.00 crore as Tier-II capital through private placement.

8. Public disclosure of investor complaints for the quarter ended 31.03.2006 :
   (a) Pending at the beginning of the quarter : Nil (b) Received during the quarter : 2
   (c) Disposed of during the quarter 2                  (d) Unresolved at the end of quarter : Nil

9. The Bank's operations are classified into two segments viz. treasury and other banking operations. The Bank operates only in domestic geographic segment.

10. Previous year's figures have been regrouped, wherever necessary.

11. The above financial results have been taken on record by the Board of Directors of the Bank at its meeting held on the 2nd May, 2006.

MUMBAI
May 02, 2006

S.K. BHATTACHARYYA
MANAGING DIRECTOR