Performance / Financial Highlights

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Performance / FinancialHighlights
September 2006
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Brief Profile

• Established on Nov 20th 1923 by the Veteran
  Freedom Fighter and a multi-faceted genius
  Dr Bhogaraju Pattabhi Seetaramaiah
• Nationalized on 15th April 1980
• Total Business Channels 1829
• Two Regional Rural Banks
• Dividend Declared 14, 24, 28, 30 35
  during the last five years.

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Performance Highlights for September 2006

• Total Business crossed Rs. 56100 Crores.
• Very Low NPA levels Gross NPAs _at_ 1.76 Net
  NPAs _at_ 0.10 .
• Net Profit increased by 20.55 on Y on Y
  basis.
• Provision Coverage increased by 5.42 on Y on Y
  basis to 93.49 of NPAs.

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Branch Network
As on Rural Semi Urban Urban Metro Total
31.03.04 381 317 277 153 1128
31.03.05 385 329 294 160 1168
30.09.05 385 333 298 161 1177
31.03.06 389 345 314 165 1213
30.09.06 389 353 318 173 1233

• Bank has presence in 21 States and 2 Union
  Territories

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Business Delivery Channels / Service Outlets
FY 2004 FY 2005 Sept 2005 FY 2006 Sept 2006
Branches 1128 1168 1177 1213 1233
Extension Counters 129 136 142 123 116
ATMs 272 330 346 391 443
Satellite Offices 44 38 38 37 37
TOTAL 1573 1672 1703 1764 1829
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Intellectual Capital
As on OFFICERS CLERICAL STAFF SUB-STAFF TOTAL Clerical Staff to Officer Ratio
31-03-04 7753 3124 2218 13095 0.40
31-03-05 7989 2885 2233 13107 0.36
30-09-05 8052 2863 2271 13186 0.36
31-03-06 8072 2827 2270 13169 0.35
30-09-06 7990 2807 2264 13061 0.35
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Technology Initiatives / Value Added Services

• 100 Branch Computerization by 31.03.2003.
• ATMs increased from 346 as on 30.09.2005 to 443
  as on 30.09.2006.
• Branches/ECs connected to ATMs increased from 830
  as on 30.09.2005 to 986 as on 30.09.2006
• No. of ATM/Debit cards increased from 1.55
  million as on 30.09.2005 to 2.07 million as on
  30.09.2006.
• Total shared ATM net work with IDBI Bank, UTI
  Bank, Indian Bank, HDFC Bank, SBI group and
  others stand at 15500

Contd
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Technology Initiatives/Value Added Services

• Cash Management Services commenced in 2004.
  Turnover crossed Rs.1147 cr for 86 customers in
  123 branches during 2005-06. As on 30.09.2006 the
  Turnover stood at Rs.684.81 crores from 92
  customers in 124 branches.
• 1026 business units (917 branches, 94 Extension
  Counters 15 Service Centers) covered under
  Cluster based Core Banking. 75.59 Branch
  network and 92.50 of business covered.

Contd
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Technology Initiatives/Value Added Services

• ATM hits crossed 1.39 lakh per day.
• Mobile Recharging facility.
• Tech savvy products such as e-Seva, e-Hundi,
  Utility Bill Payment, Visa Electron Debit Card,
  Instant Funds Transfer, On-line Tax Accounting
  System, RTGS, Internet Banking, Indian Railway
  Ticket Counter Service etc.
• Various Insurance Linked Deposit products like AB
  Jeevan Prakash, AB Jeevan Prakash Plus, AB
  Arogyadaan and AB Flex.
• New Tech savvy product AB Kisan Vikas ATM Card
  has been introduced.

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Business Levels
(Rs in crores)
Details 30.09.2005 Growth
Deposits 29869
Advances (GBC) 19152
Investments (Net) 10358
C / D Ratio() 64.55
Net Interest Income 562.89
Operating Profit 360.61
Core Operating Profit (excluding Profit on sale of Investments) 333.78
Net Profit 218.05
Net NPAs 48.92
of Net NPAs to Net Advances 0.26
30.09.2006
32513
8.85
23600
23.22
11432
10.36
72.79
8.24
666.11
18.34
19.13
429.59
406.43
21.77
262.85
20.55
-53.82
22.59
0.10
-0.16
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Deposits - Composition
(Rs in crores)
Type of Deposit 31.3.2004 31.03.2005 30.09.2005 31.03.2006 30.09.2006
Current Deposits 2218.94 2558.29 2443.65 3084.82
- Percentage Share 9.67 9.29 8.18 9.09
Savings Deposits 6348.12 7400.77 8277.39 9232.39
- Percentage Share 27.67 26.86 27.71 27.22
Term Deposits 14373.44 17591.65 19148.14 21605.20
- Percentage Share 62.66 63.85 64.11 63.69
T O T A L 22940.52 27550.71 29869.18 33922.41
2880.47
8.86
10060.54
30.94
19571.77
60.20
32512.78
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Deposits - Average
(Rs in crores)
Type of Deposit 31.03.2004 31.03.2005 30.09.2005 31.03.2006 30.09.2006
Average Current Deposits 1317.13 1778.83 1949.21 2219.71
Average Savings Deposits 5262.42 6712.14 7903.40 8087.18
Average Term Deposits 14415.58 14706.07 16643.01 18258.93
T O T A L 20995.13 23197.04 26495.62 28565.82
2379.47
9409.51
20149.79
31938.77
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Advances - Major Sector-Wise Exposure
(Rs in crores)
SECTOR 31.03.04 31.03.05 30.09.05 31.03.06 30.09.06
Food Credit 700 800 960 751 636
Non-food Credit 12684 17110 18393 21733 22964
Growth in Non Food Credit 15.94 34.89 15.00 27.02 11.33
- Medium Large Industries 3511 4958 5694 6412 6981
- Wholesale Trade 171 141 108 125 120
- Priority Sector 5144 7331 7802 8627 9575
- Other Sectors 3858 4680 5098 6569 6288
Gross Bank Credit 13384 17910 19153 22484 23600
G B C growth 12.48 33.82 13.88 25.24 9.93
Percentages are annualized
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Retail Credit
(Rs in crores)
Category 31.03.04 31.03.05 30.09.05 31.03.06 30.09.06
Housing Loans 1293 1878 1792 2436
Educational Loans 396 513 618 677
Other Retail Credit 1008 1324 1457 1934
Total 2697 3715 3867 5047
2867
810
1587
5264
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Quality of Loan Assets
Asset Quality 31.03.04 31.03.05 30.09.05 31.03.06 30.09.06
Standard Assets 95.40 97.48 97.73 98.06
Sub-Standard Assets 1.55 0.75 0.45 0.51
Doubtful Assets 3.01 1.73 1.76 1.30
Loss Assets 0.04 0.04 0.06 0.13
T O T A L 100.00 100.00 100.00 100.00 100.00
98.23
0.39
1.25
0.13
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Non-performing Assets Year Wise Movement in
Five Years
As on Gross NPAs to Gross Advances Gross NPAs to Gross Advances Net NPAs to Net Advances Net NPAs to Net Advances
As on Rs. Crore Rs. Crore
31.03.2004 615.37 4.60 120.07 0.93
31.03.2005 440.93 2.46 48.97 0.28
30.09.2005 435.13 2.27 48.14 0.26
31.03.2006 436.91 1.94 52.46 0.24
30.09.2006 416.12 1.76 22.59 0.10
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Provision Coverage for NPAs Slippage Ratios
As on Provision Coverage Slippage Ratio
31.03.2004 80.16 2.61
31.03.2005 88.22 1.18
30.09.2005 88.07 0.30
31.03.2006 87.20 0.88
30.09.2006 93.49 0.25
Slippage ratio brought down considerably even
after adoption of 90 day norm
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NPA Movement
(Rs in crores)
PARAMETER 31.03.04 31.03.05 30.09.05 31.03.06 30.09.06
Gross NPAs at the beginning of the period 580.70 615.37 440.93 440.93 436.91
Less Reduction during the period 259.89 324.68 57.55 157.28 76.43
NPAs after reduction 320.81 290.69 383.38 283.65 360.48
Add Additions during the period 294.56 150.24 51.75 153.26 55.64
Gross NPAs at the end of the period 615.37 440.93 435.13 436.91 416.12
Net NPAs at the end of the period 120.07 48.97 48.14 52.46 22.59
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Investments
(Rs in crores)
Particulars 31.03.04 31.03.05 30.09.05 31.03.06 30.09.06
Total (Net) Investments 10317.35 10646.28 10358.89 11444.15 11432.04
Average Investments 10660.00 10112.08 10150.00 10846.97 11792.50
Profit on Sale of Investments 401.76 385.51 26.83 70.84 23.16
Yield on Investments 8.92 8.14 7.54 7.29 7.14
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Investments - Composition
(Rs in crores)
Type of Investments 31.03.04 31.03.05 30.09.05 31.03.06 30.09.06
Government Securities 8810.14 8777.55 8683.81 9749.29 9467.89
Other Approved Securities 212.52 152.99 155.25 153.14 148.54
Shares 89.02 243.64 160.24 133.98 174.05
Debentures and Bonds 956.25 1168.31 1103.21 924.71 872.96
Subsidiaries and/ or Joint Ventures 9.31 9.31 9.31 9.31 9.31
Others (IDBI Deposits, IVPs, Units of UTI Mutual Funds and RIDF 240.11 294.48 247.07 473.74 759.29
Total Investments 10317.35 10646.28 10358.89 11444.15 11432.04
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Quality of Investments Portfolio

• Duration of Investment portfolio as on 30.09.2006
  is 4.73 years. (4.81 years as on 30.06.2006)
• Duration of AFS portfolio as on 30.09.06 is 1.01
  years (1.23 yrs as on 30.06.2006)
• NPAs in Investment Portfolio Rs.46.68 lakhs
  100 provided.

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Profit Loss Account - Spread Management
(Rs in crores)
Particulars FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Interest Income 2227.26 2273.46 1252.53 2674.37 1531.99
Interest Expenses 1316.68 1204.42 689.64 1505.39 865.88
Interest Spread (NII) 910.58 1069.04 562.89 1168.98 666.11
Net Interest Margin 3.78 3.58 3.68 3.32 3.81
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Interest Income
(Rs in crores)
Particulars FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Advances 1230.82 1358.60 836.97 1763.37 1056.15
Investment 951.16 823.27 377.75 790.60 417.09
Others 45.28 91.59 37.81 120.40 58.75
T O T A L 2227.26 2273.46 1252.53 2674.37 1531.99
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Interest Expenses
(Rs in crores)
Particulars FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Interest on Deposits 1238.93 1129.42 630.45 1388.62 819.55
Interest on Sub-ordinate Debt 45.78 49.33 30.08 56.45 26.90
Interest on Borrowings 31.98 25.67 29.11 60.32 19.43
T O T A L 1316.69 1204.42 689.64 1505.39 865.88
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Profit Loss Account Non-interest Income
(Rs in crores)
A) Non-interest Income from Core Operations FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
1. Commission Exchange 115.91 139.04 80.14 169.71 93.68
2) Dividend Income 14.76 9.94 4.82 8.42 3.91
3) Forex Profit 20.06 28.45 13.48 27.71 14.29
4) Other Income 125.55 190.41 69.85 181.39 95.46
Sub Total 276.28 367.84 168.29 387.23 207.34
B) Profit on Sale of Investment 401.76 385.51 26.83 70.84 23.16
Total Non Interest Income 678.04 753.35 195.12 458.07 230.50
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Non-Interest Expenditure
(Rs in crores)
Particular FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Establishment Expenses 409.41 539.53 228.88 492.89 283.40
Other Operating Expenses 249.05 289.93 168.52 365.05 183.62
T O T A L 658.46 829.46 397.40 857.94 467.02
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Provisions Contingencies
(Rs in crores)
Particulars FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Income Tax 224.09 222.77 83.00 80.00 111.00
Dep./Loss on revaluation of Investments -7.41 166.52 23.18 65.29 -0.58
Provision for NPAs 242.53 12.40 0.00 40.00 8.04
Provision against Standard Assets 3.50 13.29 4.00 39.87 11.50
Amortization 3.96 66.47 32.38 66.52 36.17
Others 0.00 -8.62 0,00 - 8.07 0.61
Total 466.67 472.83 142.56 283.61 166.74
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Net Profit
(Rs in crores)
Particulars FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Operating Profit 930.17 992.93 360.61 769.11 429.59
Core Operating Profit (excl. Profit from sale of Investments) 528.40 607.42 333.78 698.27 406.43
Provisions 466.67 472.83 142.56 283.61 166.74
Net Profit 463.50 520.10 218.05 485.50 262.85
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Capital Structure
(Rs in crores)
YEAR TOTAL CAPITAL TIER-I CAPITAL TIER-II CAPITAL OF TIER-I TO TOTAL CAPITAL
31.03.2004 1778.00 1059.00 719.00 59.56
31.03.2005 2291.64 1519.00 772.64 66.28
30.09.2005 2466.95 1728.37 738.58 70.06
31.03.2006 3295.71 2872.19 423.52 87.15
30.09.2006
3561.36
3135.04
426.32
88.03
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Financial / Performance Key Ratios and Indicators
at a Glance
FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Cost of Deposits 5.87 4.86 4.78 4.86
Yield on Advances 10.52 9.43 9.35 9.26
Yield on Investments 8.92 8.14 7.54 7.29
5.13
9.72
7.14
Contd
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Financial / Performance Key Ratios and Indicators
at a Glance
Cost / Income Ratios FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Non Interest Income to Average Working Funds 2.70 2.67 1.22 1.30
Cost of Sources 5.24 4.27 4.28 4.28
Yield from Uses 8.86 8.06 7.78 7.60
Net yield 3.62 3.79 3.50 3.32
1.20
4.50
7.96
3.46
Contd
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Financial / Performance Key Ratios and Indicators
at a Glance
Cost / Income Ratios FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Cost to Income Ratio 41.45 45.51 52.43 52.73
Staff Cost as of AWF 1.63 1.91 1.42 1.40
Other Operating Expenses as of AWF 0.99 1.03 1.05 1.04
52.09
1.47
0.95
Contd
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Earnings Ratios
FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Return on Avg. Assets (ROAA) 1.84 1.84 1.35 1.38
Return on Net Worth (RONW) 35.91 28.31 21.40 16.78
Earnings Per Share (Amount in rupees) (On annualized basis) 11.59 13.00 10.90 11.78
Book Value Per Share (Amount in rupees) 36.65 45.93 50.93 59.67
1.36
16.70
10.84
64.90
Contd
Ratios are annualized
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Productivity Ratios
(Rs in Lakhs)
FY 2004 FY 2005 Sep 2005 FY 2006 Sep 2006
Business Per Employee 250.30 346.25 350.00 426.75
Gross Profit Per Branch 81.80 85.01 61.28 63.41 69.68
Net Profit Per Employee 3.50 3.97 3.11 3.69 4.02
Business Per Branch 3213.00 3885.87 4164.91 4633.02 4550.90
429.62
Annualized
Contd
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Capital Adequacy / Other Ratios
As on 31.03.04 As on 31.03.05 As on 30.09.05 As on 31.03.06 As on 30.09.06
Tier I Capital Ratio 8.17 8.03 8.36 12.20 12.06
Tier II Capital Ratio 5.54 4.08 3.58 1.80 1.64
Total Capital Ratio (CRAR) 13.71 12.11 11.94 14.00 13.70
Net Worth to GBC 11.27 10.26 10.64 12.87 13.34
Net NPAs to Net worth 8.27 2.67 2.40 1.81 0.72
Net NPAs to Net Advances 0.93 0.28 0.26 0.24 0.10
Contd
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Additional DisclosuresBreak up of Investments
(Rs in crores)
Nature of Investments As on 31.03.2005 As on 31.03.2005 As on 30.092005 As on 30.092005 As on 31.03.2006 As on 31.03.2006 As on 30.09.2006 As on 30.09.2006
Nature of Investments Amt. of Total Amt. of Total Amt. of Total Amt. of Total
SLR Securities 8398 78.88 8321 80.19 9370 81.88 9084 79.46
Non-SLR Securities 1758 16.51 1547 15.04 1584 13.84 1858 16.25
Recapitaliza-tion Bonds 490 4.61 490 4.77 490 4.28 490 4.29
Total 10646 100 10358 100 11444 100 11432 100
Contd

• SLR maintained as on 30.09.2006 26.48 of NDTL

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Additional Disclosures

• CRAR as per extant guidelines of RBI including
  capital charge for Market Risk stands at 13.70
  as on 30.09.2006 as against 14.38 as on
  30.06.2006.
• If capital charge for Operational Risk, which is
  effective from 31.03.2007 is also factored, the
  CRAR would stand at 12.40. (RWAs for Operational
  Risk as on 31.03.2006 are reckoned for this
  purpose)

Contd
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Value Added Services

• Internet Payment Gateway through SIFY
• Introduced 8 a.m. to 8 p.m. and 7 day Banking in
  select branches to extend the Service hours to
  clientele
• Opened a Representative Office in Dubai to
  coordinate with NRIs for increasing our NRI
  customer base.
• Imparting training to Agriculturists, Rural Un-
  employed youth on vocational courses through our
  9 Rural Development Institutes.
• Opening of representative offices is under
  consideration Riyadh, Muscat, Kuwait Doha

Contd
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ISO 90012000 Certificate

• ISO 90012000 Certification has been awarded
  to 100 of our Branches two of our offices

• STAFF COLLEGE
• DATA CENTRE at Department of Information
  Technology

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Results that define pursuit of Excellence is due
to

• Support from Customers, Stake-holders and Well
  Wishers,
• Team work of 13000 dedicated employees
  AND
• Excellent co-operation from Banking Analysts.

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• Thank You