1. The financial results for the quarter
ended 30th June 2009 have been arrived at on the same
Accounting Policies as those followed in the previous
year and after considering provisions for Bonus, gratuity,
pension, leave encashment and other defined employee
benefits as per AS 15 (Revised), provision for Income
Tax including Deferred Tax, Wealth Tax, Service Tax,
Depreciation, Provision for Wage Revision etc. on an
estimated basis and provision for NPA, Standard Assets
and Investments as per RBI norms.
2. a) The Bank holds a floating provision of Rs. 84.45
Crores as on 30th June 2009 over and above the amount
required as per RBI guidelines on Income Recognition,
Asset Classification and Provisioning on advances.
b) As regards Agricultural Debt Waiver and Debt Relief
Scheme, 2008 formulated by the Government of India
(GOI) and various circulars issued by the Reserve Bank
of India from time to time, the bank has identified,
as on 30th June 2009 a sum of Rs. 385.50 Crores as
eligible for Agricultural Debt Relief. A provision
of Rs. 5.55 Crores during this quarter has been made
towards loss in present value of receivables from farmers
on account of the relief scheme.
3. Hitherto, the bank had been making provision for
wage revision @ 13.25% up to 31.03.2009. However, due
to recent developments, the management has decided
to enhance the provision to 15% with retrospective
effect from 01.11.2007 and accordingly a provision
of Rs. 24.03 Crores has been made during the quarter
ending 30th June 2009, which includes a provision of
Rs. 9.19 Crores for the earlier period from 01.11.2007
to 31.03.2009.
4. The reconciliation of various inter-branches, inter-bank and other accounts,
including National and Local Clearing account, NOSTRO account, Branch System
Suspense account, FOREX Clearing General account and IBIT account is an ongoing
process and are under progress. The impact of the above, if any, on the financial
results for the quarter ended 30th June 2009, in the opinion of the Management,
is not material.
5. The Capital Adequacy Ratio has been computed based
on the figures furnished in returns of 20 branches
reviewed by Statutory Central Auditors, 25 branches
reviewed by Concurrent Auditors and remaining 631 un-reviewed
branches. In some of the Branches there was mis-classification
of data in buckets of BASEL-II statements. However,
in the opinion of the management, their impact on CRAR
in BASEL-II is not material.
6. Number of Investor Complaints received and disposed
off during the quarter ended 30th June 2009.
(i) Pending at the beginning of the quarter Nil
(ii) Received during the quarter 12
(iii) Disposed off during the quarter 12
(iv) Lying unresolved at the end of the quarter Nil
7. The figures of previous quarter have been re-grouped
/ rearranged wherever considered necessary to correspond
to current quarter classification.
8. The above results have been taken on record by
the Board of Directors of the Bank at its meeting held
on 18th July 2009 and are subjected to review by the
Auditors.
