2009 recritment policy

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Central bank indaHead ofce, chaderukhi, naria poit, mubai - 400021

NoTiCEnOTIcE is hereby give that the 2d Aual Geeral meetig o the shareholders o cetral Bak o Idia will be held at , SirSorabji pohkhaawala Bakers Traiig college, nr cooer Hosital/BSES Oe, JVpD Shee, Vile parle - West, mubai400056, o Tuesday, 4th August 2009 at 03:00 pm. to trasat the ollowig busiess:

1. To disuss, arove ad adot the Balae Sheet o the Bak as at 31st marh, 2009, prot & Loss Aout or the yeareded 31st marh, 2009, the Reort o the Board o Diretors o the workig ad ativities o the Bak or the eriodovered by the aouts ad the Auditors Reort o the Balae Sheet ad Aouts.

2. To delare Divided or the year 2008-09.

3. Ay other ite iludig irease o authorised aital o the Bak, issue o Shares et as deeed t by the Board.

plae : mubai S. SrdharDate : Jue 24, 2009 chaira ad maagig Diretor

NoTES:

1. APPoiNTMENT oF PRoXY:

A SHAREHOLDER EnTITLED TO ATTEnD AnD VOTE AT THE mEETInG IS EnTITLED TO AppOInT A pROXY (WHETHER A SHAREHOLDEROR nOT, BUT OTHER THAn An EmpLOYEE OR OFFIcER OF THE BAnK) TO ATTEnD AnD VOTE InSTEAD OF HImSELF/HERSELF.

The proxy, i order to be eetive, ust be reeived at Head Oe situated at chaderukhi, naria poit, mubai 400021ot less tha our days beore the date o meetig i.e., o or beore the losig hours o the Bak at 5:00 .. o Wedesday,29th July 2009, together with a power o Attorey or other authority, i ay, uder whih it is siged or a oy o that power oAttorey or other authority certied as a True coy by a notary publi or a magistrate uless suh power o Attorey or otherauthority has bee reviously deosited ad registered with the Bak.

2. AppOInTmEnT OF A REpRESEnTATIVE:

no erso shall be etitled to atted or vote at the meetig as a duly authorised reresetative o a coay uless a oy othe Resolutio aoitig hi as a duly authorised reresetative, certied to be True coy by the chaira o the meetigat whih it was assed, shall have bee deosited at the Head Oe o the Bak ot later tha our days beore the date omeetig i.e., o or beore the losig hours o the Bak at 05:00 pm. o Wedesday, 29th July, 2009.

3. ATTEnDAncE SLIp-cUm EnTRY pASS:

For oveiee o the Shareholders, Attedae Sli-u-Etry pass is aexed to this notie. Shareholders are requested toax their sigatures at the sae rovided therei ad had over the sae at the veue o the meetig. proxy/Reresetativeo the shareholder should state o the attedae sli as proxy or Reresetative, as the ase ay be.

4. cLOSURE OF REGISTER OF SHAREHOLDERS:

The Register o mebers ad Share Traser Books o the Bak will reai losed ro 29th July 2009 to 04th August 2009

(both days ilusive).

5. pAYmEnT OF DIVIDEnD:

The Board o Diretors o the Bak i its eetig held o 28th Aril 2009 has reoeded al divided at Rs.2/- er share or theFiaial Year 31st marh 2009. pursuat to the Book closure as etioed at oit no.4 above, suh divided is ayable to thoseshareholders whose aes aear o the Register o Shareholders o the Bak as o 4th August 2009 or those holdig shares ihysial or, ad as er the details ade available to the Bak o the lose o 28th July 2009 by nSDL & cDSL or those holdigshares i deat or. The divideds will be distributed to the eligible shareholders o or beore 18 August 2009.

6. cHAnGE OF ADDRESS/DIVIDEnD mAnDATE:

Shareholders are requested to itiate hage o their address, divided adate, Bak artiulars, et., to Baks Registrars &Traser Aget, iediately ater suh hages to avoid ioveiee at a later date. The shareholders holdig their shares ieletroi or ay aroah their Deository partiiat (Dp) or reordig suh requests.


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ANNUAL REPORT 2008-09

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7. cOnSOLIDATIOn OF FOLIOS:

The Shareholders who are holdig shares i idetial order o aes i ore tha oe aout are requested to itiate tothe Registrars & Traser Aget, the ledger olio o suh aouts together with the share ertiates to eable the Bak to

osolidate all the holdigs ito oe aout. The share ertiates will be retured to the ebers ater akig eessaryedorseet i due ourse.

8. LODGEmEnT FOR TRAnSFERS AnD InVESTORS SERVIcES:

Share certiate alog with traser deed ad ay olait should be orwarded to the Registrars & Share Traser Aget othe Bak at the ollowig address.

Lik Itie Idia pvt. Ltd

(Uit: cetral Bak o Idia)

c-13 paalal Silk mills cooud

LBS marg, Bhadu (West)

mubai 400078

phoe: (022) 2596 3838

Fax: (022) 2594 6969

e-ail: [email protected]

9. REQUEST TO mEmBERS:

please ote that oies o the Aual Reort will ot be distributed at the Aual Geeral meetig as a eooy easure.Hee, ebers are requested to brig their oies o the Aual Reort to the meetig.


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Drectrs Reprt 2008-09To the mebers,

Your Diretors have leasure i resetig the Baks Aual Reort alog with the Audited Stateet o Aouts, the protad Loss aouts ad the cash Flow Stateet or the year eded marh 31, 2009.

1. PERFoRMANCE HiGHLiGHTS

Total Busiess o the Bak ireased by Rs 33405 rore to Rs 218012 rore, whih is a y-o-y irease o 18.10 eret.

Total Deosits ireased by Rs 20952 rore to Rs 131272 rore, whih is a y-o-y irease o 18.99 eret.

Gross credit ireased by Rs 12453 rore to Rs 86740 rores, whih is a y-o-y growth o 16.76 eret.

Oeratig prot ireased by Rs 169 rore to Rs 1437 rore, registerig a y-o-y irease o 13.33 eret.

net prot ireased by Rs 21 rore, registerig a y-o-y irease o 3.82 eret.

caital Adequay Ratio (as er Basel-I) ireased to 11.75 eret ro 10.42 eret durig the revious sal. As er

Basel-II, the cRAR o the bak Stood at 13.12 eret. net Worth ireased by Rs 500 rore to Rs 4401 rore, registerig a y-o-y irease o 12.82 eret.

Gross npAs redued to Rs 2316 rore ro Rs 2350 rore i the revious year. I ters o eretage, the Gross npAsredued to 2.67 eret ro 3.16 eret i the revious year.

net npA ireased argially to Rs 1063 rore ro Rs 1060 rore i the revious year. net npA eretage reduedto 1.24 eret ro 1.45 eret i the revious year.

net Iterest margi redued to 1.97 eret ro the revious year orresodig gure o 2.40 eret. This was dueto all i yield o ivestets ro 7.03 eret (2008) to 6.89 eret (2009) ad irease i cost o Deosits ro6.24 eret (2008) to 6.90 eret (2009).

Busiess er Eloyee ireased to Rs 560 Las ro the revious year orresodig gure o Rs 401 Las.

credit deloyed uder priority Setor ireased ro Rs. 25442 rore to Rs. 29270 rore i 2008-09, reordig a y-o-y

growth o 15.05 er et.

Diret Agriulture advae reorded a growth o 27.91% over 2007-08 desite adjustet o Debt Waiver clai o Rs.399.59 rore. The Bak surassed the target or Agriulture (18 er et) by ahievig 19.14 er et o AnBc.

The Bak issued 221558 Kisa credit cards durig the year with satioed liit o Rs.1134 rore.

The advaes to SmE ireased to Rs. 6644.47 rore at the ed o the urret year ro Rs. 6037 rore as o 31.03.2008.The uber o seialized SSI / SmE brahes too ireased ro 35 to 60.

10968 Sel Hel Grous ored out o whih 7824 grous have bee redit-liked.

Ioratio Tehology Based Fiaial Ilusio lauhed i our Distrits ad 1290822 aouts oeed uderFiaial Ilusio.

Eduatioal Loa ortolio reorded a growth o 46.88 er et to Rs 824 rore.

The Bak has itrodued a seial akage or housig loas o uto Rs 20 Lakh at a oessioal rate o iterest o 8%or the rst year.

Bak overed 20262 woe beeiaries uder the Jaashree Bia Yojaa.

Free ouselig to distressed arers/ borrowers o the various bakig roduts started at two eters udercetSahyog.

Five RUDSETI etres oeed to eourage develoet o rural etrereeurshi.

The Bak was raked rst aogst all baassurae arters o LIc.

Over 4.2 las ATm ards i oeratio.

1202 brahes, 20 nBOs, 135 extesio outers ad 4 ScAps are o the core Bakig Solutio lator.

cheque Truatio Syste ileeted i all cBS brahes uder ncR, Delhi.

First atioalized Bak to lauh Visa platiu ad Visa Gold redit ards.


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2. iNCoME & EXPENDiTURE

Details o Ioe ad Exediture or the eriod 2008-09 are give hereuder:

Rs. in crore

31.03.2009 31.03.2008 Variatio %

1. InTEREST IncOmE 10455 7884 2571 32.61

- Advances 7753 5297 2456 46.37

- Investments 2563 2350 213 9.06

- Others 139 237 (98) (41.35)

2. OTHER IncOmE 1070 902 168 18.63

(Proft on Sale o Investments) 410 154 256 166.23

3. TOTAL IncOmE (1+2) 11525 8786 2739 31.17

4. InTEREST EXpEnDED 8227 5772 2455 42.53

- Deposits 7913 5579 2334 41.84

- Others 314 193 121 62.69

5. OpERATInG EXpEnSES 1861 1746 115 6.59

- Establishment 1272 1214 58 4.78

- Others 589 532 57 10.71

6. TOTAL EXpEnSES (4+5) 10088 751 8 2570 34.18

7. SpREAD (1-4) 2228 2112 116

8. OpERATInG pROFIT (3-6) 1437 1268 169 13.33

9. pROVISIOnS npA/InVST./OTHERS 512 416 96 23.08

10. pROVISIOn FOR TAXATIOn 354 302 52 17.22

11. nET pROFIT 571 550 21 3.82

Iterest ioe ro advaes ireased by 46.37 eret but redutio i the iterest ioe ro others resulted ioderatio o irease i Iterest Ioe by 32.61 eret.

net Iterest sread grew by 5.50 eret isite o 42.53 eret irease i total Iterest exeded. Iterest aid odeosits was higher by 41.84 eret ad iterest aid to others higher by 62.69 eret.

net Iterest margi has redued to 1.97 eret ro 2.40 eret durig the revious year due to all i Yield oIvestets ad Irease i the cost o deosits.

Oeratig rot ireased by 13.33 eret, but due to higher rovisios by 23.08 eret, the irease i net prot

oderated to 3.82 eret.

3. PRoViSioNS

Details o Total provisios o Rs. 866 rore harged to the prot ad Loss Aout durig the urret year vis--vis Rs. 718

rore or the year eded marh 31, 2008 are as uder :

(Rs. in crore)

31.03.2009 31.03.2008 Variatio

Provisions or Standard Assets 45 84 (39)

Provisions or NPAs 322 289 33

Depreciation/Provision on Investments 91 74 17

Provision or Taxes 354 302 52

Others 54 (31) 85

Total 866 718 148


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4. SPREAD ANALYSiS

(In percentage)

31.03.2009 31.03.2008Cost o Deposits 6.90 6.24

Cost o Funds 6.94 6.27

Yield on Advances 10.19 9.74

Yield on Investments 6.89 7.03

Net Interest Margin 1.97 2.40

Cost Income Ratio 56.44 57.92

The cost o Deosits ad the cost o Fuds ireased to 6.90 eret ad 6.94 eret resetively ro the reviousyear orresodig gure o 6.24 eret ad 6.27 eret resetively.

The Yield o Advaes ireased to 10.19 eret but the yield o ivestets redued to 6.89 eret. The net Iterest margi redued to 1.97 eret ro 2.40 eret.

5. bANKiNG RATioS

(In percentage)

2008-09 2007-08

Interest Income to Average Working Funds (AWF) 8.22 7.81

Non-Interest Income to AWF 0.84 0.89

Operating Proft to AWF 1.13 1.26

Return on Average Assets 0.45 0.54

Business per Employee (Rs. in lacs) 560 401

Net Proft per Employee (Rs. in lacs) 1.71 1.56

6. CAPiTAL To RiSK WEiGHTED ASSETS RATio (CRAR)

The ooets o caital adequay Ratio are as uder:

Rs i rore

31.03.2009 31.03.2008

Basle I Basle II Basel - I

Risk Weighted Assets 79572 71270 71765

caital Fuds

-Tier I 6.24% 6.97% 5.42%

-Tier II 5.51% 6.15% 5.00%

caital Adequay Ratio 11.75% 13.12% 10.42%

The Baks caital adequay ratio as o 31st marh 2009 stood at 13.12% ater rovidig aital harge or credit, market adOeratioal risks as er Basel II ors. The Bak obilized additioal aital o Rs.700 rore uder Tier I aital durig the year,whih also eabled the Bak to irease its Tier II aital ad overall aital adequay ratio. The Baks Tier I aital stood at6.97% as o 31.3.09 agaist the adatory requireet o 6% to be ahieved by marh 2010 as stiulated by RBI.

7. NET PRoFiT & DiViDEND

The Bak registered a net rot o Rs 571 rore or 2008-09 as agaist Rs 550 rore or the revious year. The Board o diretorsare leased to reoed a divided @ 20 eret.


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8. CHANGES iN THE boARD DURiNG THE YEAR

Durig the year uder review, the ollowig hages took lae i the Board o Diretors o the Bak:

Dr. Shashak Saksea has bee aoited as Goveret o Idia noiee Diretor i lae o St. Viita Kuar witheet ro 10th Jue, 2008.

Shri Albert Tauro, Exeutive Diretor has retired ro the Board o our Bak o 2d August, 2008 due to his elevatioas chaira ad maagig Diretor o Vijaya Bak.

Shri Kaal Faruqui has retired o 15th Seteber due to exiry o his ter o 3 years.

Shri K. Subbaraa, Exeutive Diretor has retired o 30th Seteber, 2008 due to his suerauatio.

major (Retd.) Ved prakash has retired o 5th Otober due to exiry o his ter o 3 years.

St. Satya Bahi has retired o 9th noveber, 2008 due to exiry o her ter o 3 years.

Shri Harish chadhok has retired o 9th noveber, 2008 due to exiry o his ter o 3 years.

Shri Brijlal Kshatriya ad pro. n. Balakrisha have bee eleted as Shareholders Diretor o our Baks Board o 20thnoveber, 2008.

Shri Raath pradee has bee aoited as Exeutive Diretor with eet ro 19th Deeber, 2008.

ms. H.A. Daruwalla has retired o 31st Deeber, 2008 due to her suerauatio.

Shri S. Sridhar has bee aoited as chaira ad maagig Diretor with eet ro 2d marh, 2009.

Shri Roesh Sabharwal has retired o 2d marh, 2009 due to exiry o his ter o 3 years.

9. DiRECToRS RESPoNSibiLiTY STATEMENT

The Diretors or that i the rearatio o the aual aouts or the year eded marh 31, 2009:a. The aliable aoutig stadards have bee ollowed alog with roer exlaatio relatig to aterial deartures,

i ay;b. The aoutig oliies raed i aordae with the guidelies o the Reserve Bak o Idia, were osistetly

alied;. Reasoable ad rudet judget ad estiates were ade so as to give a true ad air view o the state o aairs o

the Bak at the ed o the aial year ad o the rot o the Bak or the year eded marh 31,2009;d. proer ad suiet are was take or the aiteae o adequate aoutig reords i aordae with the rovi-

sios o aliable laws goverig baks i Idia; ade. The aouts have bee reared o a goig oer basis.

10. ACKNoWLEDGEMENT

The Board is grateul to the Goveret o Idia, Reserve Bak o Idia ad the Seurities & Exhage Board o Idia ortheir otiued ooeratio, suort ad advie. The Board akowledges with gratitude the ustited suort o its us-toers ad shareholders. The Board wishes to lae o reord its areiatio o the dediated servies ad otributioade by ebers o sta or the overall erorae o the Bak.

For ad o behal o the Board o Diretors

plae: mubai S SridharDate: Jue 24, 2009 cHAIRmAn & mAnAGInG DIREcTOR


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ireased by Rs. 1812 rore i 2008-09 as agaist a delie o Rs. 2121 rore i 2007-08. The lower exasio i redit relativeto the exasio i deosits resulted i a delie i the ireetal redit-deosit ratio (y-o-y) o ScBs to 64.4 eret at theed marh 2009 ro 73.6 eret a year ago.

Statistis released by the RBI o setoral deloyet o bak redit as o February 27, 2009 reveal that redit to the idustrialsetor o y-o-y basis reorded the highest growth (25.8 eret), ollowed by agriulture ad allied ativities setor (21.5 er-et) ad servies (19.2 eret). Withi the idustrial setor, the exasio o ireetal o-ood redit was led by etro-leu, oal ad ulear uels (78.2 eret) ollowed by ostrutio (58.5 eret), Iro & Steel (37.0 eret), Irastruture(35.1 eret), Rubber, plastis & their roduts (34.0 eret) ad Egieerig (31.2 eret). The irastruture setor aloeaouted or 31.3 eret o the ireetal redit to idustry as oared with 33.2 eret i the orresodig eriod othe revious year. priority Setor advaes grew by 19.2 eret i February 2009 as oared with 16.9 eret growth durigthe orresodig eriod o the revious year.

The ScBs ivested Rs. 1,94,031 rore i the Goveret ad other Aroved Seurities i 2008-09, whih was higher tha Rs.1,80,199 rore i the revious year. ScBs holdig o Goveret ad other aroved seurities (SLR ivestets) as a ereto their et dead ad tie liabilities (nDTL) ireased to 28.1 eret at ed-marh 2009 ro 27.8 eret a year ago.

PART b - PERFoRMANCE oF THE bANK

bUSiNESS

The total busiess o the Bak ireased to Rs 218012 rore, registerig a year-o-year growth o Rs 33405 rore or 18.1 eret.The Oeratig prot ireased by 13.33 eret ro Rs 1268 rore to Rs 1437 rore. Durig the year, the net prot ireased by3.82 eret ro Rs 550 rore to Rs 571 rore. The net worth ireased by 12.82 eret ro Rs 3901 rore to Rs 4401 rore.The Busiess-er-eloyee ad the Busiess-er-brah also ireased to Rs 5.60 rore ad Rs 54.23 rore, resetively.

RESoURCE MobiLiSATioN

The total deosits o the Bak reorded a growth o about 19.0 eret ro Rs 110320 rore to Rs 131272 rore. Withi these,the cASA registered a growth o 9.84 eret ro Rs 39867 rore as a marh 2008 to Rs 43793 rore as o marh 2009. As abusiess strategy to brig dow the ost o deosits, the bulk deosits o about Rs 11000 rore were ot reewed o aturity.

CREDiT DEPLoYMENT

The gross redit stood at Rs. 86,740 rore as o 31-3-2009 as agaist Rs.74,287 rore durig the revious year, registerig agrowth o 16.76 eret. This year witessed a oderate redit growth, whih deelerated sigiatly ater Otober 2008,

as a osequee to the global elt dow ad its rile eet o the Idia eooy i geeral ad Idustries ad ServiesSetor i artiular. nevertheless, the growth i redit is diversied i all segets ad is ore rooued i Irastruture,costrutio ad Retail.

Durig the year uder review, the Bak tried to irease its Retail Ledig portolio, whih is ore reuerative as oaredto the cororate Loas. The Bak tied u with TATA motors to rovide ae o easy ters or bookig ad urhase o allasseger vehiles o TATA motors Ltd., eseially their reetly lauhed eooy ar nAnO.

The Bak has also redued the rate o iterest o Housig Loa to 8 eret or a loa uto Rs.20 las or rst year to akeHousig Loas heaer ad aordable to low ad iddle ioe grou i oority with Goveret Diretives.

PRioRiTY SECToR CREDiT

The redit deloyed uder priority Setor ireased ro Rs. 25411 rore to Rs. 29246 rore i 2008-09, reordig a y-o-y growtho 15.09 eret. Out o this, the diret Agriulture advae has reorded a growth o 27.59 eret over 2007-08 desiteadjustet o the Debt Waiver clai o Rs. 399.59 rore. The erorae reorded by the Bak uder various segets o

priority Setor as o 31.03.2009 is as uder:

(Rs. i rore)PARTiCULARS March 2008 March 2009 % Grwth

Adjusted net Bak credit(AnBc) 52483 73619 priority Setor Advaes 25442 29270 15.05eret to AnBc 48.48 39.76

Total Agriultural Advaes 11287 14093 24.86% to AnBc 21.51 19.14Diret Agriultural Advaes 6982 8931 27.91% to AnBc 13.30 12.13

Eduatio 561 824 46.88Housig (uto Rs 20 Las) 3704 4983 34.53

miro & Sall Eterrises 5078 5816 14.53


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AGRiCULTURE

Total Agriulture redit ireased by 24.66 eret ro a level o Rs 11287 rore as o 31.03.2008 to Rs 14093 rore as o31.03.2009. The share to adjusted et bak redit (AnBc) stood at 19.14 eret whih was higher tha the stiulated share

o 18 eret.

CENTRAL KiSAN CREDiT CARD (CKCC)

Durig the year the Bak issued 221558 Kisa credit cards with satioed liit o Rs.1134 rore. The uulative uber oards issued is 1317111 ad the total uber o ards i oeratio are 744768, with outstadig balae o Rs. 3805 rore.

MiCRo, SMALL AND MEDiUM ENTERPRiSES (SME)

The advaes to SmE ireased to Rs. 6644.47 rore at the ed o the urret year ro Rs. 6037 rore as o 31.03.2008. Theuber o brahes idetied or oused attetio o mSmE redit ireased ro 35 to 60. Extesive traiig was rovided toBrah maagers o these brahes at our aex istitute i mubai. These brahes are ow adotig luster-based aroahor aelerated growth uder the mSmE. Further, the Bak is extedig ollateral ree loas u to Rs.100 Lakh or settig u ouits uder miro & Sall Eterrises setor, whih are also eligible or over uder cGTmSE shee.

The Bak has ileeted a shee to exted redit agaist Ware House Reeits uder the collateral maageet Servies

avourig natioal Bulk Hadlig cororatio Ltd. (nBHc) ad natioal collateral maageet Servies Ltd. (ncmSL). Theshee is aliable to all r ie ills agaist stok o rie ad addy. I additio, the Bak has also rovided ae to arers,traders ad idustries agaist ledge o warehouse reeits issued by ajor warehousig bodies.

SELF HELP GRoUPS

Durig the year, 10968 grous were ored uder the shee by the Bak, out o whih 7824 grous have bee redit-liked.Sie ietio o the shee, the Bak has ored 102090 SHGs out o whih 66863 grous are redit-liked with outstadigbalae o Rs. 724.11 rore at the ed o the year. Out o the redit-liked grous, 51798 are Woe SHGs with total satioedliits o Rs. 437 rore.

FiNANCiAL iNCLUSioN

Durig the year our Bak has oeed 1290822 aouts uder Fiaial Ilusio. As er the RBI diretives, the oveors oresetive State Level Bakers coittee (SLBc) have idetied ertai distrits or 100 eret aial ilusio. Out o these,The Bak has bee alloated 19059 villages i 260 idetied distrits by the resetive SLBc oveors. Out o these, 12088

villages have bee overed uder 100 eret Fiaial Ilusio. Further, the Bak has lauhed Ioratio Tehology (IT)based Fiaial Ilusio i our Distrits viz. Hoshagabad (m.p.), Goalara (Assa), Waragal (A.p.) ad Dhule (maharashtra).

EDUCATioNAL LoAN

The Bak etered ito tie-u arrageets with a uber o eduatioal istitutios to irease disburseets uder EduatioalLoa Shee. Soe o these istitutios are Air Hostess Aadey, meteor Istitute o Digital Desig Studies, GmR VarahlaxiFoudatio, Great Easter Istitute o maritie Studies, Bajaj Istitute o moder maageet, pue et. As a result o thesead other easures, the Eduatioal Loa ortolio reorded a growth o 47 eret ro Rs. 561 rore as o marh 2008 toRs. 824 rore as o marh 2009.

HoUSiNG LoAN ( Upt Rs 20 Lacs )

The Bak otiued to eror well i the housig setor uder riority setor i.e., with a tiket size o Rs 20 Las. The y-o-ygrowth uder this seget was reorded at 34.53 eret.

AGRiCULTURAL DEbT WAiVER AND DEbT RELiEF SCHEME 2008

The Bak has ileeted the shee, as aoued by the Hoble Uio Fiae miister i his Budget Seeh 2008 ad haswaived loa o Rs. 974.62 rore, beetig 443000 margial ad Sall arers durig the year. Uder the Oe Tie Settleet(OTS) Shee, Debt Relie has bee rovided to 112355 Other arers with total aout o Rs. 286.72 rore.

STATE LEVEL bANKERS CoMMiTTEE

The Bak is the oveer o SLBc i the State o madhya pradesh. Durig the year 2008-09, seve SLBc eetigs were held toreview ad oitor the rogress ade i the State uder various araeters iludig Goveret sosored rograes adalso to review the ileetatio o ADWDRS 2008.

GoVERNEMENT SPoNSoRED PRoGRAMME (2008-09)

Durig the year, the Bak has satioed loas aoutig Rs. 21.74 rore to 6527 beeiaries uder Swara Jayati ShahariRojgar Yojaa (SJSRY). Further, loas aoutig to Rs 133.86 crore were satioed to 14986 swarozgaries uder Swara

Jayati Grai Swarojgar Yojaa (SGSY).


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ADVANCE To WEAKER SECTioN

Durig the year, the Bak has exteded loas o Rs. 7392 rore to various ategories o weaker setios, whih ostitutes10.04 eret o AnBc.

ADVANCE To MiNoRiTY CoMMUNiTiES

The Govt. o Idia has reetly alized a ew prie miisters 15 poit prograe or welare o miorities i idetied 121distrits. The Bak has exteded various loa ailities aoutig to Rs. 2589 rore to 3373109 beeiaries, belogig to di-eret miority couities.

ADVANCES To WoMEN bENEFiCiARiES:

credit disburseet to woe beeiaries, artiularly i Tiy & SSI setors iroved, resultig i the outstadig redit towoe as o marh 2009 at Rs. 3761.93 rore to 420055 woe beeiaries. This is 5.11 eret o AnBc as agaist thestiulated RBI or o 5 eret.

MiCRo CREDiT

The Bak has exteded redit o Rs. 193.45 rore to 128966 beeiaries where the loa aout does ot exeed Rs. 50000

er borrower.SoCiAL SECURiTY SCHEMES

1. JAnASHREE BImA YOJAnA:

The scheme is operated in association with LIC o India to provide lie insurance cover to rural and urban poor women, who are

below or marginally above the poverty line and who are members o Credit linked Women SHGs o our Bank. The Bank has already

covered 20262 women benefciaries during 2008-09, against the target o 5000, thereby recording 405.24 percent achievement

vis--vis the target.

2. RASHTRIYA KRISHI BImA YOJAnA

Under the scheme, coverage is extended to the armers or yield losses arising due to non-preventable risks. The above scheme

is available throughout the country. Under the Crop Insurance scheme, fnance was extended to 143866 armers to the tune o

Rs. 407.68 crore or cultivation o cereals, oilseeds in the notifed states/areas.

3. cEnT JAnATA cREDIT cARDS:

Bank has issued 4991 Cent Janata Credit Cards with sanctioned limit o Rs. 10.92 crore to meet the dierent requirements o the

benefciaries residing in the rural and semi-urban area.

4. RURAL GODOWnS AnD WAREHOUSES / cOLD STORAGES

The Bank has extended advances or construction o rural godowns and warehouses / cold storages so that armers are not com-

pelled to make distress sale o their produce during peak season. During the year, advance against warehouse receipts was granted

to 886 armers or an amount o Rs. 189.92 crore.

5. cEnT SAHYOG

Our Bank has opened two centers one at Ratlam in Madhya Pradesh and the other at Vadkun in Thane District, in Maharashtra to

provide ree counseling to the villagers on the various Banking products, both deposits and loans and also counseling to distressed

armers / borrowers, irrespective o whether they are Banks client or not.

6. RURAL DEVELOpmEnT & SELF EmpLOYmEnT TRAInInG InSTITUTE (RUDSETI)

With a view to eourage develoet o rural etrereeurshi, the Bak has set u ve cBI-RUDSETIs at Kota (Rajastha),muzaarur (Bihar), Hoshagabad (madhya pradesh), Abikaur (chhattisgarh) ad chhidwara (madhya pradesh).proosals are i ie lie to set u eight ore cBI-RUDSETIs i our States to over our thirty-seve Lead Distrits to rovideitesive etrereeurshi traiig to the rural youth to eable the to take voatioal ativities.

7. InDIRA AWAS YOJAnA

The Bak has exteded to-u loa o Rs. 378.63 Lakh to 1744 beeiaries uder the shee or ostrutio o dwelliguits.

mAnAGEmEnT OF npAs & REcOVERY

The Bak has a Reovery poliy with detailed guidelies or npA aageet. These are beig reviewed ro tie to tie toiororate the latest hages / develoets ad treds i npA aageet, eoassig all areas o npA aageet viz.,

oitorig, ollow-u, sta aoutability, oroise settleets ad reortig systes.


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The Bak has show good erorae i ters reovery ad redutio o npAs durig the year 2008-09.

Level o gross npA brought dow ro Rs 2350 rore as o 31-03-08 to Rs 2316 rore as o 31-03-09.

The eretage o et npA to et advaes redued ro 1.45 eret as o 31-03-08 to 1.24 eret as o 31-03-09.Bak las to brig this urther dow to below 1 eret durig 2009-10.

Early idetiatio o roble aouts uder Early Alert Syste (EAS) ad Seial metio Aouts (SmA) or seialollow u as a revetive easure eetively ut i lae.

cash reovery Rs.308 rore ad Ugradatio Rs. 116 rore ahieved durig the year 2008-09.

The Bak reovered Rs. 84 rore ro rudetially writte o aouts.

Seial OTS shee or advaes uder Govt. sosored shees with satioed liits uto Rs. 1 lakh ad otheraouts uto Rs. 10 lakhs was i ore uto 31-03-09.

Greater ous o o-legal ethods or reovery i npA aouts.

Several ultiurose as held i dieret loatios where egotiated settleets were ade aross the table result-ig i substatial reoveries.

Eetive ad tiely ivoatio o SARFAESI At rovisios i eligible aouts is resultig i good reovery.

All the above eorts have heled the Bak to otai npAs withi reasoable liits. Baks oitet to kee npAs uderhek will otiue through oerted eorts baked by eetive reovery strategies ad rudet wath o asset quality.

iNTERNATioNAL DiViSioN

Foreig Exhage busiess o the Bak is arried out through our 7 A category Authorised Dealer (AD) Brahes ad 78 Bcategory brahes. As agaist the 68 AD brahes, whih had igrated to core Bakig Solutios durig the year 2007-08, thereaiig 17 AD brahes have also bee etworked to the cBS syste. The Exort credit o the Bak stood at Rs.2618.81 croreas o marh 31, 2009. Durig the year oe aout o Exhage House has bee added uder the Ruee Drawig Arrageet.I order to ailitate aster USD heque olletio, the Bak has etered ito tie u with citibak n.A. or olletio o USDheques uder chek 21. The Bak is egotiatig ad is i the roess o arragig urther tie u arrageets or cash to cashIward reittae Shee. The Bak is also osiderig roosals reeived uder Seed Reittae.

The Bak has aroved Tradig i currey Futures ad is i the roess o obtaiig mebershi o mcX-Stok Exhage adnatioal Stok Exhage. The rodut shall shortly be available to all our ustoers to hedge their orex risk. FcnR (B) deositsstood at Rs.675.73 rore as o marh 31, 2009 ad the nRE Deosits stood at Rs.1365.70 rore as o marh 31, 2009. I orderto ater to the bakig eeds o our nRI ustoers ad exorter/iorter lietele, the Bak has alied to Reserve Bak o Idiaor erissio to oe Reresetative Oes abroad at the ollowig eters: Dubai, Sigaore, Hog Kog, Doha ad Lodo

TREASURY, FUNDS AND iNVESTMENT

The Ivestet portolio o the Bak ireased to Rs.44,445 rore as o marh 31, 2009 as agaist Rs.32,796 rore as o marh31 , 2008 reordig a irease o 35.52 eret over the revious aial year.

Durig the year, the debt arket witessed high levels o volatility i iterest rates. The te-year behark yield oved uwardro 7.94 eret as o 31-03-2008 to as high as 9.37 eret i July 2008. It eased to 5.25 eret o 31st Deeber 2008 beorehardeig to 7.02 eret o 31st marh 2009. Desite the extree volatilities, the Bak ahieved a tradig turover o Rs.46,764.92rore durig the year 2008-09 ad a volue growth o 11.41 eret over the revious aial year. However, the yield o Baks

ivestet ortolio was 6.88 eret vis--vis 7.42 eret i the aial year 2007-08. market treds suh as redetio ohigh ouo ivestet, ad resh ivestet at urret low arket yields have aused redutio i overall ivestet yield.

I ters o Reserve Bak o Idia guidelies, the Bak has traserred seurities aoutig to Rs. 3036.82 rore ro Availableor Sale [AFS] ategory to Held to maturity [HTm] ategory i Jue 2008. provisios to the extet o Rs.84.67 rore was reversedto prot & Loss aout o aout o prudetial Write O o npI where 100 eret rovisio was already held. The AFS ort-olio ireased by Rs.4276.18 rore durig the aial year 2008-09 to a level o Rs.14,952.67 rore.

The oositio o ivestet ortolio o the Bak as o 31-03-2009 is as uder:

Sl N. Cmpstn 31-03-2008 31-03-2009

1 S L R 27666.67 39439.73

2 no-SLR 5129.71 5005.92

3 ToTAL 32796.38 44445.65

Rs i crore


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CAPiTAL ADEQUACY

The Bak assessed its aital requireet or this aial year keeig i view the ileetatio o Basel II, eetive 31stmarh 2009, ad the overall busiess growth ad raised aital as uder:

I additio, the Goveret o Idia has also iused aital i the Bak to the tue o Rs.700 rore uder Tier I, as er detailsas uder:

Ter i Captal Quantum n Rs Mnth rasng captal

peretual no uulative preeree Shares (pncpS) Rs.117 rore marh 2009

Iovative peretual Debt Istruet (IpDI) Rs.583 rore marh 2009

Captal Quantum n Rs Mnth rasng captal

Uer Tier II Rs.300 rore noveber 2008

Uer Tier II Rs.285 rore February 2009

Lower Tier II Rs.270 rore February 2009

The caital Adequay Ratio as er Basel I ireased ro 10.42 eret (2008) to 11.75 eret (2009) isite o irease iadvaes by Rs 12453 rore ad osequet irease i Risk Weighted Assets ro Rs 71765 rore as o marh 31, 2008 toRs 79572 rore as o marh 31,2009. As er Basel II, the cRAR o the Bak stood at 13.12 eret.

NEW iNiTiATiVES

bANCASSURANCE

The Baassurae busiess whih was started uder ororate agey o LIc ad nIA gaied urther oetu. The Bakahieved the distitio o beig raked rst aogst all baassurae arters o LIc.

65 eret o brahes o the Bak were ativated or baasurae busiess as o 31.3.09. Eah o these brahes hadavassed a iiu o 12 poliies or olleted preia o Rs. 2 Las durig the year

189 brahes beae Bia Bak brahes durig the year by avassig ore tha 200 oliies or FpI o Rs. 30 las erbrah durig the year.

Two zoes o the Bak beae BImA Zoes durig the year, havig 10 eret o the brahes qualiyig as Bia Bakbrahes

The oissio ioe uder ara bakig ativities ahieved growth o 65 eret durig the year.

MUTUAL FUND

The Bak etered ito a ross sellig arrageet with Kotak mahidra mF durig the year, thus ireasig the tie u withseve to Fuds viz. UTI mutual Fud, Tata mutual Fud, Frakli Teleto Ivestets, IcIcI prudetial, Reliae mutual Fudad Sudara Bnp paribas. Durig the year the Bak eared oissio o Rs 1 rore i utual ud busiess through 450idetied brahes.

DEMAT SERViCES

Deat Servies are beig rovided to 23134 aout holders through 117 idetied brahes uder cetral Deository ServiesIdia Ltd (cDSL). SmS alert ad easi/easiest ailities are also rovided to the ustoers, ree o ost.

bRANCH EXPANSioN

As o 31st marh 2008, Bak was havig 3308 Brahes, 34 Satellite oes ad 243 Extesio couters. Durig the year 190brahes were oeed ad 22 Extesio couters were ugraded ito ull-fedged brahes. Two brahes viz., cue paradebrah ad Versova Road brah were erged with colaba causeway brah ad Seve Buglows brah resetively.

At the ed o the aial year, 31st marh 2009, there were 3518 Brahes, 34 Satellite Oes ad 219 Extesio couters.Out o these 1376 are Rural Brahes, 884 Sei-Urba Brahes, 675 Urba Brahes ad 583 metro Brahes.

iNFoRMATioN TECHNoLoGY

bRANCH AUToMATioN

As o 31.03.2009, the Bak has ahieved 100 eret couterisatio ad the sotware-wise brah distributio is as ollows :


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The Total Brah Autoatio akages are roured ro m/s. Zeith Ioteh Ltd (ZIL) ad m/s. IraSot. As regards to pBA,ost o the brahes are usig ALpm akage develoed i-house. core Bakig Solutio roured ro m/s. TcS is ile-eted at 1202 brahes, 135 Extesio couters, 20 nBOs ad 4 ScAps.

ATM NETWoRK AND DEbiT CARD

Bak has suessully oleted roll-out o 400 ATms by Otober 2008 as er phase-I ileetatio. The sread o ATms is asuder :

LIVE ATms As o 31.03.2009 cARD BASE AV. HITS / ATm/ DAY

On SITE OFF SITE TOTAL 31.03.09 31.03.09

TOTAL 302 98 400 421984 46

Our ard-base has rossed 4.2 las ark. Our ards a be used at 2.5 las ATms ad urhases a be ade at ore tha 25las loatios i Idia. For the oth o marh 2009, total hits have rossed 6.48 las with ore tha 4.51 las ash trasatios.There are ore tha 1.29 las balae equiries er oth ad early 8000 oit o sales, aoutig to Rs. 1.53 rore. The Baklas a urther rollout o 350 ATms (250 O-site ad 100 O-site) iludig 25 Bioetri ATms.

NETWoRK AND CoNNECTiViTY

CoRPoRATE WAN

cororate WAn was established overig all Zoal Oes, Regioal Oes ad 73 major brahes ad nBOs. Aliatios likecetmail, cetvoie (WAn phoe), RTGS et. are workig o this WAn. Ater itrodutio o ew WAn or cBS (BWcn), all thealiatios hitherto workig o old WAn have bee igrated to work o BWcn.

MAiL MESSAGiNG SERViCE (CENT MAiL)

presetly, the ororate ail servie - cetmail is workig o a distributed arhiteture ileeted i 2002. The ai server islaed at chadermukhi buildig ad zoal servers at zoal oes. cet mail is ow workig i suh a way that Zoal Serversare usig cBS network or oetivity. IDRBT has withdraw the mmS suort or routig our ails to outside the Bak. nowthe ails set outside the Bak are set diretly through Iteret. The oguratio or this was doe i-house usig the ati-virus gateway at cetral Oe without vedors suort or ay additioal exediture. The FmS (Faility maageet Servie)o cetmail is beig hadled i-house. The reset ail syste is ore tha seve years old ad requet robles are aed. Iorder to have a roble-ree etralized ororate mail syste with latest eatures ad State-o-the-art tehology, revaigo mmS syste to brig additioal utios is urretly laed ad RFp or the sae has bee foated.

ViDEo CoNFERENCiNG

polyo Video coereig Equiets are istalled at all 16 Zoal Oes, Bhoal OTc, Kolkata OTc, SpBT college adBelaur. Videooeree master cotrol Uit is at cetral Oe. The Zoes are gettig oeted to cetral Oe throughISDn Dial u servie. The ossibility o extedig the Video coereig aility to 16 ore Regioal Oes is beig exlored.

WEbSiTE

Our Baks website (www.etralbakodia.o.i) dislays ioratio ertaiig to Deosit Shees, Loa Shees/ailities, Iteratioal Bakig, Iterest Rates, Servies, Servie harges ad ees, RTI At et. The Website also has a BrahLoator through whih a visitor a searh earest brah like cBS brahes, ATm loatio, RTGS brahes et.

The Website also has a aility wherei a ustoer a aly or Eduatio Loa ro Website itsel. Oe a visitor subits thealiatio through website, a akowledgeet otaiig aliatio reeree uber is autoatially set to the visitorse-ail-ID ad the aliatio is orwarded to oered Regioal Oe or urther roessig.

Agriulture Debt Waiver Data has bee aalgaated ad ade available o the Baks website or the ioratio o usto-ers aross the natio.

Our website a also be aessed through ollowig doai aes :-

www.etralbak.org.i

www.etralbakodia.org.i

Partculars (N. branches) March 2008 March 2009

Total Brahes 3308 3518

a. TBA 1796 1854b. pBA 492 462

. cBS 1020 1202


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www.etralbakodia.et.i

www.etralbakodia.asia

www.etralbak.asia

These additioal doai aes were registered to itigate the risk o hisig o website over ybersae, so that deetivewebsites with aes siilar to Baks website are ot able to ature odetial data ro our ustoers. As er guideliesrovided by cert-I, the Bak has iitiated a roess or rovidig a dediated server or web-site aliatios.

CoRE bANKiNG SoLUTioN

A total o 1202 brahes, 20 nBOs, 135 extesio outers ad 4 ScAps are o the core Bakig Solutio lator, whih hasbee ileeted together with Orale As (cororate Geeral Ledger) ad chael G (Goveret Busiess). Exi-bills(Trade Fiae & Forex module) also were ileeted i 85 Forex brahes. chael-G (Goveret busiess module) adE-credit (credit Araisal module) have bee deloyed i the rodutio ad is available to all the cBS brahes.

iNTERNET bANKiNG

Iteret Bakig aility has bee lauhed or the ustoers o cBS brahes durig Aril, 2007 ad SmS Bakig durigSeteber 2007. presetly there are 33,397 ustoers usig Iteret Bakig Solutio.

CHEQUE TRUNCATioN SYSTEM

cheque Truatio Syste (cTS) has bee ileeted i all cBS brahes uder natioal caital Regio, Delhi. Higher bad-width o 2 bs is also rovided at Delhi nBO to take are o the high volue o heque iages.

Rbi PRoJECTS

RTGS - Develoet o RTGS iterae with cBS has bee oleted ad RTGS solutio is ileeted i 1227 brahes as o31.03.2009 out o whih 1200 are through cBS iterae.

nEFT- As at the ed o the year, 1227 brahes have bee brought uder nEFT out o whih 1200 are through cBS iterae.

Seed clearig - Seed learig has bee itrodued i 37 etres o the Bak. As er RBI istrutios seed learig is to beexteded through all 60 mIcR etres. As ad whe the loal learig etres itrodue Seed learig, reaiig 23 etres othe Bak will artiiate i Seed learig.

oTHER GoVERNMENT PRoJECTS

Olie Diret Taxes, Idiret Taxes ad o-lie DGFT liese ee reittae ailities are rovided uder cBS. 457 brahes aredesigated or Diret tax olletio, out o whih 399 brahes have bee ileeted i cBS.

212 brahes o the Bak are authorized or olletio o cetral Exise ad Servie tax uder EASIEST (Eletroi AoutigSyste i Exise & Servie Tax), out o whih 113 brahes are uder cBS.

Eletroi Aoutig Syste or E-Reeits (EASeR), a e-ayet solutio or Exise duty ad servie tax was ileetedo 1st August 2008 with churhgate ad cheai mai Brah as nodal brahes. E-ayet aility or diret taxes wasileeted o 15th may 2008 with Vikhroli, mubai as colletig Brah.

iN-HoUSE DEVELoPED PRoJECTS

Autoatio o deartets like Geeral Adiistratio Deartet (GAD) iludig its pritig ad Statioery, Goveretodules like Olie Tax Aoutig Syste (OLTAS), Eletroi Aoutig Syste i Exise ad Servie Tax (EASIEST), Bakig

cash Trasatio Tax (BcTT), Assets & Liabilities stateet Sotware o HRD, sotware or suit-led ad o-suit-led aoutsdata or subissio to RBI, are doe through i-house sotware.

Siilarly nBO Tool, cTR trasatio aturig tool or TBA brahes ad Tool or uloadig Exhage House Data i cBS Syste(Overseas Brah) sotware or rearatio o VOSTRO R-Retur ro Exhage House stateets, sotware or searatigExhage-house stateets, sotware or oversio o F111 suary ro cBS syste to orat that a be uloaded i cASakage ad nEcS Tool i mubai nBO or nEcS learig or cBS brahes are also develoed i-house ad ileeted.

A web based Sotware coliae moitorig Syste has bee develoed i-house ad ileeted i coliae cell. Allthe zoes are diretly aessig this sotware or data etry. Govt. module E-Sroll Sotware or maharashtra Sales Tax olletiohas bee ileeted or desigated brahes i mubai ad is beig rolled out i pue Zoe.

DiSASTER RECoVERY MANAGEMENT

A Disaster Drill was oduted o 14.03.2009 by swithig o the Dc Servers at about 01.30 .. ad akig the Dc Serversu at 3.15 .. Eve though the Dc was ut o ro Brahes without rior itiatio, o data loss ourred durig the drill


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roess. 1,89,000 trasatios were doe by the brahes at DRc. Ed o Day (EOD) was also doe at the DRc ad the systewas haged to Dc at 4 a.. o 15.03.2009.

REMiTTANCE & PAYMENT SYSTEM

PAYMENT GATEWAY

Deartets like RTGS ad certiyig Authority (cA) Oe are oeted to RBI through two 2 mbs lies at cO ad oe 64Kbs lie at mmO.

We roose to start multi protool Label Swithig Virtual private network (mpLS Vpn) through IDRBT ad two servie roviders.It would be the sigle oit o otat or servie roviders ad eber baks. Istallatio ad oetivity are oleted atData cetre, Belaur. Ad the payet Gateway is utioig live ro Data ceter, Belaur uder mpLS oetivity to RBIwith Leased Lies baku. For DR Site o payet Gateway also, the mpLS coetivity will be soo shited to Hyderabad.

bUSiNESS PRoCESS RE-ENGiNEERiNG

BpR is the aalysis ad radial desig o the existig systes ad roedure ad work roesses so as to lower the osts, ireasethe quality o servies ad better delivery systes to ustoers both i ters o resose tie ad quality. To ulll this obje-tive, BpR exerise i reset o ollowig areas were udertake durig the year:

SETTInG Up OF SpEcIALISED cEnTRES FOR OpEnInG OF AccOUnTS (ScAp)

ScAp have bee started i our etros to take u bak oe work related to oeig deosit aouts viz., srutiy odos, cIF data ature, letter o thaks, roessig o ATm/ Iteret bakig request ad ailig Weloe kit to bee-iaries, otaiig ersoalized heque book ad brohure o various roduts ad servies oered by the Bak.

InTER-BRAncH TRAnSFER OF FUnDS On cBS pLATFORm

This will ailitate iter-brah traser o uds

RE-DESIGn OF AccOUnT OpEnInG FORmS

The aout oeig ors have bee redesiged, keeig i view the Ati moey Lauderig (AmL) guidelies adrequireets o the ore bakig

cEnTRALISATIOn OF InWARD cLEARInG

proessig o iward learig is beig etralized at the Baks no Busiess Oes to ut dow o exediture adirove the ustoer servie

RATIOnALISATIOn OF cOnTROL RETURnS

The maageet Ioratio Syste is beig revaed or eetive oitorig

RiSK MANAGEMENT

iNTEGRATED RiSK MANAGEMENT SYSTEM/oRGANiZATioNAL SET-UP

Itegrated Risk maageet systes are ow well established i the Bak. A coittee o the Board o Diretors regularlyoversees the Baks Risk maageet oliies/raties uder credit, market ad Oeratioal risks. The coittee reviews theoliies ad roedures or riig o roduts ad assessig the risk odels relative to arket develoets ad also ideti-es ad otrols ew risks. The oittee also regularly oitors oliae o various risk araeters by the oeredDeartets at the ororate level.

RiSK MANAGEMENT STRUCTURE

At oeratioal level, various coittees like Asset Liability maageet coittee (ALcO) or market Risk, credit poliycoittee (cpc) or credit Risk ad Oeratioal Risk maageet coittee (ORcO) or Oeratioal Risk have bee osti-tuted orisig o ebers ro the to aageet tea. These coittees eet at regular itervals throughout the yearto assess ad oitor the level o risk uder various Bak oeratios ad iitiate aroriate itigatio easures wherevereessary.

The Bak has idetied oers o the rak o Seior maagers/maagers to at as Risk maagers at all the Zoal ad RegioalOes. The Risk maagers would at as the Exteded Ars o the Risk maageet Deartet o the cetral Oe at the ZoalLevel. All the idetied Risk maagers as well as Risk Aalysts o Zoal ad Regioal Oes have bee give traiig at the Bakstraiig eters at mubai, Bhoal ad Kolkata durig 2008. The Bak has also idetied oers at the seior level i variousutioal deartets o cetral Oe to at as nodal Oers i the atter o subissio o data relatig to Risk maageetad suort risk aageet i the Bak.


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CREDiT RiSK MANAGEMENT

The Bak has a well-doueted credit Risk maageet poliy, whih was reviewed by the Board durig the year. Risk ratigtools develoed or ratig o large ororates, ad SmEs are ully oeratioal i the Bak. credit Risk Ratig Tools or nBFcs,

Greeeld mauaturig Uits ad Irastruture projets are also utioal through itra-et based syste. The Bak hasorulated aual sorig odels or Retail ad Agriultural advaes whih have bee aroved by the Board ad are uderileetatio. Thus alost the etire redit ortolio o the Bak, barrig those uder sheati ledig are overed by therisk ratig roess. The Bak has idetied ad osted 26 oers to exlusively arry out the duties o Loa Review Oers atthe Zoal Oes.

oPERATioNAL RiSK MANAGEMENT

Oeratioal Risk is ebedded i all busiess oeratios ad the maageet o Oeratioal Risk is a iortat art o thesoud Itegrated Risk maageet struture. The Bak has orulated a well laid dow oliy or aagig Oeratioal Risk,whih was reviewed durig the year. I the bakgroud o the size ad olexity o busiess ad risk hilosohy o the Bak,ehasis is beig give to iart kowledge at the eld level through otiuous traiig roess. The roess o idetiy-ig, assessig, easurig, oitorig ad otrollig o Oeratioal risk is i lae aart ro reatio o Data Base or ov-ig towards Stadardized ad Advaed measureet Aroah or aital harge alulatio uder Basel II ileetatiowithi a tie rae.

MARKET RiSK MANAGEMENT

market Risk is the risk to the Bak resultig ro the oveets i arket ries artiularly due to hages i the iterestrates, oreig exhage rates, ad equity ad oodity ries. The hages will have diret iat o the Baks earig adits aital. These hages a have raiatios o the Baks liquidity ad rotability.

For aageet o arket risk, the ehasis has bee laed o stabilizatio ad steady growth o Baks et iterest ioe(nII). The Treasury mid Oe reviews the arket ositio, udig atters ad esures oliae i ters o exosure, dura-tio, outer arty liits ad various sesitive araeters. The tools suh as VaR ad Duratio aalysis are used o a ogoigbasis to easure ad aage the risk to Baks nII i the short ru ad equity value i the log ru.

A odel to estiate caital harge o tradig ortolio o daily basis is beig develoed to ileet the Basle II guidelieso the market Risk. The Bak has aitaied oortable liquidity ositio throughout the year.

iMPLEMENTATioN oF bASEL - ii GUiDELiNES

Reserve Bak o Idia has issued aster irular o ileetatio o the new caital Adequay Fraework o 1st July 2008.Reserve Bak o Idia has urther issued ertai aedets to these guidelies o 15th noveber 2008. As er the guidelies,the Bak has adoted Basel II ors with eet ro 31st marh 2009 ad rovided aital as er Stadardized Aroah orcredit Risk, Basi Idiator Aroah or Oeratioal Risk ad Stadardized Duratio ethod or market Risk.

The Bak has aoited a solutio rovider or ileetatio o the iteratioally reuted SAS Risk maageet solutiothrough out the Bak to eet Basel II ors. Roll out o the solutio is uder ileetatio. The Bak has a well laid out laor igratig to advaed aroahes ad oveyed its readiess to Reserve Bak o Idia or adotio o advaed aroahesas er the tierae suggested by the. The Bak has etered ito moU with all the our exteral redit ratig ageies viz.,cRISIL, cARE, IcRA ad Fith or ratig o its ororate exosures as required uder Basel II. major art o the Baks exosure tothe ororate ategory is already overed uder exteral ratig.

All eessary oliies suh as market Risk poliy, Ivestet poliy, credit Risk mitigatio ad collateral maageet poliy,market Disilie ad Dislosures poliy, IcAAp et are i lae duly aroved by the Board.

CUSToMER SERViCE

I order to eet the growig exetatios o ustoers i the otext o liberalizatio ad oetitio i the bakig idustry,the Bak has take several stes, soe o whih are as uder:-

custoers a eet Zoal / Regioal / Brah maagers o 15th o every oth without rior aoitet to resolvetheir grievaes.

providig traiig to rot lie sta at brahes to irove quality o ustoer servie ad be ore resosive to theireeds.

providig a searate outer or seior itizes.

Exetio ro iiu balae requireet to all seior itizes above 60 years o age oly.

new oessios to all the Seior citizes, who are aitaiig a average hal yearly balae o Rs.5000/- i SavigsBak Aouts.


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a) Two dead drats (maxiu othly aggregate aout o Rs.25000/- to be issued ree o servie harges byo-ash ayet oly).

b) Free stadig istrutios.

Quik settleet o deeased lais.

Additioal iterest o Ter Deosits to Seior citizes.

cheque Dro Box ailities rovided at brahes.

Iediate redit o loal / outstatio heques uto Rs.15000/- give to eligible ustoers.

Exhage aility o soiled / utilated urrey otes ad distributio o ois at desigated brahes.

The custoer Servie coittee o the Board has bee set u to look ito the ileetatio o the custoer Serviepoliies o the Bak.

Stadig coittee o custoer Servie orisig o our ustoers o the Bak has bee ostituted.

cet Bal Bhavishya -a seial deosit shee or hildre uto the age o 12 years was lauhed

KYC NoRMS AND AML MEASURES

A oliy douet o Kow Your custoer (KYc) nors ad Ati moey Lauderig (AmL) easures was orulated adadoted / aroved by the Baks Board. All the oes o the Bak have bee rovided with these douets or ilee-tatio. periodial heks are ade by Baks audit tea to veriy whether these ors are roerly ileeted. All traiigolleges ad traiig etres o the Bak iart traiig rograes / sei sessios o KYc ad AmL.

RiGHT To iNFoRMATioN ACT, 2005

Ater eatet o the Right to Ioratio At, 2005, the dislosure o ioratio ertaiig to the Bak was dislayed oBaks website. Further, to ailitate Geeral publi i seekig ioratio ro the Bak, cetral publi Ioratio Oers(cpIO) ad Aellate Authorities were aoited at the Adiistrative Oes o the Bak. Also or roer ileetatio othe At, a nodal Oer i the rak o Geeral maager o the Bak has bee oiated.

GRiEVANCES REDRESSAL MECHANiSM

The Bak believes i rovidig rot ad eiet servies ot oly to attrat ew ustoers but to eetively retai theexistig oes. The oliy ais at iiizig istaes o ustoer olaits through roer servie delivery to esure rotredressal o ustoer olaits. custoers a aess Baks website ad lae their grievaes, i ay, through Iteret,phoe or ay other ode o ouiatio. Geeral maager (Oeratios) has bee desigated as nodal Oer at cororatelevel or redressal o ubli grievaes.

CoDE oF THE bANKS CoMMiTMENT To CUSToMERS

The Bak has joied Bakig codes ad Stadards Board o Idia as a eber ad volutarily adoted the code o Bakscoitet so as to esure that the orehesive ode o odut or air treatet o ustoers are evolved ad adheredto. The code is laed o the Baks website ad rited oies o the code i Hidi, Eglish ad veraular laguages are adeavailable to existig ad rosetive ew ustoers o the Bak at brah level.

For iartig better ustoer servie, the Bak has orulated sei oliies o:-

(i) poliy o olletio o heques / istruets.

(ii) poliy o grievaes redressal ehais

(iii) coesatio oliy

(iv) poliy o olletio o Dues ad Reossessio o seurities.

Further, BcSBI has orulated code o Baks coitet to miro & Sall Eterrises (mSE). The code has bee adatedad is beig ileeted i our Bak ad also laed o our Baks website.

CURRENCY CHEST

There are 110 currey chest Brahes utioig i the Bak. Durig the year the Bak has subitted six roosals to ReserveBak o Idia or oeig ew urrey hests.

RBIs clea note poliy has bee ileeted by the Bak. Uder the poliy, Bak is able to suly good quality urrey otesto the geeral ubli ad also utilated otes are beig take out o irulatio. All the desigated brahes exted the aility


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o exhage o soiled / utilated urrey otes ad distributio o ois o all workig days. This aility is also exteded oay oe Suday o the oth at selet urrey hest brahes with seial ehasis i the Rural / Sei-urba area.

Itegrated currey chest Oeratios ad maageet Systes (IccOmS) is ileeted i 110 currey chest Brahes.

GoVERNMENT bUSiNESS

The Bak is hadlig Goveret trasatio relatig to olletio o uds o cetral Board o Diret Taxes (cBDT), cetral Board oExise ad custos (cBEc), Railways, postal ad Deartetalised miistries aouts. The Bak is also aitaiig ppF ad Seiorcitize Deosit Shee 2004 aouts. The total Goveret Busiess hadled by the Bak durig the year 2008-09 aouted toRs 27,901 rore.

oLTAS & EASiEST

The Bak is artiiatig i O Lie Tax Aoutig Syste (OLTAS) itrodued by cetral Board o Diret Taxes. 459 Brahes othe Bak are authorized to ollet diret taxes ad Baks artiiatio is 100 eret. Exise ad Servie Tax odule uder theEletroi Aoutig syste i cetral Exise ad Servie Tax (EASIEST) has bee ileeted at 210 Brahes.

CENTRAL CARD

O 20.08.08, the Bak lauhed two reiu visa redit ard roduts Visa platiu ad Visa Gold redit ards. The Bak beaethe rst atioalized Bak i Idia to lauh Visa platiu ards, to suit the high-ed liestyle o to cororate Exeutives ad Highnetworth Idividuals. Both the platiu ad Gold redit ards have iteratioal aetae ad have ebedded i the all theattrative eatures like Revolvig credit, Reward poits, Balae Traser Faility et. The Bak also las to itrodue ash-bak oerso these platiu ad Gold ards with the rootioal ietive rograe aroved by Visa Worldwide pvt. Ltd.

AUDiT & iNSPECTioN

All the brahes o the Bak are subjeted to iteral audit, risk assesset & Ioratio Systes audit every year. The no-Bakig Oes, currey chests ad Dealig Roos are also audited regularly. maageet Audit o the cotrollig Oesad utioal deartets at the cororate Oe is oduted regularly or otiuous iroveet i the systes adroedures ad eetive oitorig o the Baks busiess.

The Itegrated Treasury brah ad 610 brahes are uder courret audit by the rs o chartered Aoutats, overig57.90 eret o total deosits ad 77.67 eret o total advaes o the Bak as o 31.03.2009. The Geeral AdiistratioDet. at cororate Oe is also uder ourret audit by i-house Auditors.

The iteral auditors have bee iarted traiig & sesitized to brig i attitudial hage i their idset i view o theiedig Basel II ileetatio. The Audit & Isetio oliy o the Bak has bee revised. Eviroet is beig reated toove strategially ro the ovetioal trasatio testig to a orward lookig aroah, o the basis o risk eretio, adalso or suggestig adequately or risk itigatio.

The Audit coittee o the Board o Diretors (AcB) eetigs were oveed o seve oasios, durig the year, ad the reortso otrollig oes, ajor audit digs, rogress o audit utio, et. were arised regularly to the AcB or guidae &iroveets.

ibR / HoUSE-KEEPiNG

Durig Fiaial Year 2008-09, The Bak has aitaied a satisatory ositio i balaig o books o aouts by ousedattetio ad regular u-gradatio o the syste. The core Bakig lator is ow beig diretly utilized to seed u theroess o reoiliatio work o Iter Brah Trasatios. The Iter-Brah trasatios sreadig over 3518 brahes/Oesare beig arried out suessully o a o goig basis.

Sigiat iroveet has also bee ahieved i reoilig ad restritig uber o outstadig etries uder variousIersoal aouts viz. clearig Dieree, Iter-Brah, Iter-Bak (RBI/SBI/Other Baks) ad other noial Aouts. TheBak is erseverig towards aitaiig overall healthy ositio o House keeig so as to kee the level o risk at iiu.The ositio o outstadig etries is aitaied well withi the RBI ors.

ViGiLANCE

The Vigilae Deartet o the Bak otiues to oversees three basi utios relatig to Vigilae i the Bak, viz.,prevetive, Ivestigative, & puitive Vigilae, while esurig oliae with the diretios eaatig ro the cetralVigilae coissio / Goveret o Idia ro tie to tie relatig to the subjet.

The Deartet has oused its attetio o asets relatig to prevetive Vigilae by oerig suitable advies to the oera-tioal deartets ro tie to tie, with regard to review o the existig Systes & proedures. Aalysis o the odus-oe-radi o rauds oitted rovide iuts or suggestig ileetatio o easures to lug looholes ad revet reurreeo suh rauds et.


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With the objetive o highlightig the ostat eed or ugradig skills ad awareess relatig to revetio/ hadlig orauds, Workshos have bee held i soe Zoal Oes ad are sheduled to be held shortly at the reaiig Zoal Oes toiterat with the various eld /oeratig level utioaries. At these workshos, while ehasis is laid o the eed to stritlyollow laid dow roedures, the eld level oials are also advised o the stes to be take o a ogoig basis to revet /iiise rauds et.

I reset o Ivestigative vigilae, Vigilae Oers osted at the Zoal Oes, who diretly reort to the chie VigilaeOer, have bee advised to irease the uber o surrise isetios o brahes, so as to esure ireased overage obrahes, ad also to seed u the roess o arryig out ivestigatio ito sei olaits reeived ro various soures.Workshos o these Vigilae Oers are also held to eable sharig o exeriees ad hoig o ivestigative skills.

As regards puitive Vigilae, the Deartet oversees the odut o the Disiliary atio iitiated arisig out o the ivesti-gatios ad where the ature o irregularities are deided as havig a vigilae agle. The deisio by the chie Vigilae Oerto treat a atter as Vigilae or otherwise is take based o the reoedatios o the Iteral Advisory coittee, oris-ig 3 Geeral maagers, set u as er the guidelies o the cVc. The deartet has take various easures to esure seedierdisosal o Disiliary Atio ases, whih have bore ruit i brigig dow the uber o outstadig ases.

The utioig o the Vigilae Deartet is reviewed every quarter by the Vigilae coittee o the Board o Diretors othe Bak. The Board also reviews the Quarterly / Aual reorts o Frauds i Borrowal / no-Borrowal aouts. Frauds i exess

o Rs.10.00 illio are reorted to the Seial coittee o the Board or moitorig Large-value Frauds.

RAJbHASHA

The Bak has ade good rogress i ileetatio o Oial Laguage poliy o Govt. I our Bak, we esure et-eretoliae o Oial Laguage poliies ad Diretives. Third sub-oittee o parliaet coittee o Oial Laguage adDrat ad evidee sub-oittee o Oial Laguage visited our Baks Gagtok Brah; Regioal Oe, Siliguri; RegioalOe, Ahedagar; Zoal Oe, Delhi; Zoal Oe, Lukow ad Regioal Oe, Varaasi ad olieted the work beigdoe by the Bak i Hidi. A glise o adirable ahieveets i the eld o oliae o Oial Laguage poliy o Govt.o Idia are as uder :

The Bak has bee awarded Idira Gadhi Rajbhasha prize.

I the Reserve Bak Rajbhasha Shield, the Bak has bee awarded seod rize i Liguisti Regio B ad Fourth prizei Liguisti Regio A.

Various Tow Oial Laguage Ileetatio coittee workig uder the otrol o Govt.o Idia, miistry oHoe Aairs have give :

First rize to our Baks Zoal Oe, pue, Ahedabad, pata, Agra, Kolkata, Delhi, chadigarh, Regioal Oe,Auragabad, Kota, Bhubeshwar ad makarura Brah (Baroda);

Seod rize to our Zoal Oe Lukow, Ahedabad, Regioal Oe, Idore, Deharadu ad

Third rize to Regioal Oe, Hoshagabad.

The Bak has bee assiged resosibility o o-ordiatio o Tow Oial Laguage coittee o Bhoal, Raiur,madurai ad Jalgao.

Govt. o Idia, miistry o Hoe Aairs awarded Seod ad Third rize, resetively, or best o-ordiatio o TowOial Laguage Ileetatio coittee, Raiur ad madurai.

Zoal Oe, Delhi has bagged third rize ro TOLIc Delhi or cetralvai beig ublished by Delhi Zoe.

HUMAN RESoURCE MANAGEMENT

MANPoWER

At the ed o marh 2009, the sta stregth o the Bak stood at 35,543 (iludig pTSK) as agaist 37,488 (il. pTSK) i therevious year. The ategory-wise break-u o sta is give below :

Categry March 2009 March 2008

Oers 12441 11768

clerks 12935 15126

Sub.Sta (il. pTSK) 10167 10594

GRAND ToTAL 35543 37488


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HUMAN RESoURCES DEVELoPMENT AND TRAiNiNG

With the wids o oetitio blowig hard i the Bakig Idustry, it is the quality o hua resoure ad ot the ubers thatatter or ay Orgaisatio. Suh quality i hua resoure a be ahieved through ostat haressig o their skills, rovid-

ig otiuous oortuities or aquirig ew kowledge ad also istillig ositive attitudes aog rak ad le. Aordigly,Traiig & Develoet utio otiued to be give ajor thrust. The quality o traiig is the orerstoe or buildig healthysuessio ad to urture a soud aagerial tea. With this bakdro ad i urtherae to the ostat edeavour to trasorthe Bak as a Learig Orgaisatio, vibrat hages were brought about i the etire gaut o the traiig ativity eoassigtraiig odules, otets ad delivery systes et.

Durig the year 2008-09, aroud 1000 lass roo traiig rograes were oduted overig ore tha 15,000 artiiatsad 60,000 a-days by three Traiig colleges ad ie Zoal Traiig cetres. These rograes overed various toislike core Bakig Solutios, Risk maageet, Basel II, Advae credit maageet, npA maageet, E-credit, Exibills,maageet Develoet ad Geeral Bakig et. Aart ro these regular traiig rograes, seial traiig ro-graes were oduted at SpBT college or 56 Regioal maagers o Strategi Develoet, Leadershi ad Tea Buildigwith the exertise o cetre or Alied Syste Aalysis i Develoet (cASAD) pue. Further, 30 idetied oers weretraied at SpBT college i Risk maageet with the doai traiig iuts by Istitute o Isurae ad Risk maageet,Hyderabad. Further, the seial traiig rograes o core Bakig Solutios (cBS) were oduted o otiuous basis orthose oers ad eloyees who are resetly workig i cBS brahes ad also those workig i the brahes whih are likelyto be ade cBS-eabled i the ear uture.

Exeriees reveal that the loatioal rograes ake ositive iat o the oers ad eloyees workig i the eldby eablig the to lear their doubts whih they oe aross while ileetig the various guidelies, oliies ad ro-graes o cetral Oe. cosiderig this aset, durig the year 2008-09, about 100 loatioal rograes o wide ragigtois o oeratioal iortae, were oduted i whih aroud 2000 eloyees iludig oers, were traied. I order toget the oers ully aquaited with the oet o Basel II ad outatio o redit risk several loatioal rograes wereoduted wherei 386 oers were traied. Durig the year 2008-09, 33 re-rootio rograes were oduted over-ig 1020 Sc & 309 ST adidates. Further, i resose to the Baks advertiseet or reruitet o 850 lerial sta i therst hase, as ay as 3,24,000 asirats have alied out o whih aroud 40,000 belog to Sc/ST. The Bak will be iartigre-reruitet traiig or all these 40,000 Sc/ST aliats through a outside agey o reute at 26 loatios.

Ioratio Tehology otiues to be the key driver o Baks growth. Aart ro the exlusive traiig rograes oIoratio Tehology, i eah rograe, oe ull legth sessio eah o IT ad Baassurae were dediated to sesitizethe oers o these tois. Besides this, 392 oers i various sales were iarted seial traiig i the eergig ew thrustareas, through reuted exteral traiig ageies like BIRD, FEDAI, nIBm, cAB, IDRBT et. As a art o this, 22 Auditors weretraied by SAmA Audit Systes & Sotware pvt. Ltd., mubai i the eld o IT Seurity, Goverae, Risk & otrol. Durig theyear 2008-09, 24 oers i seior level were deuted abroad or attedig seiars o various subjets related to the eergigdeveloets i Bakig.

RECRUiTMENT & PRoMoTioNS

As a art o the Baks ostat edeavour to ulll the syhologial eeds o the sta ebers o their areer rot, durigthe year 2008-09, 1852 lerial sta were rooted to oer adre. Further, 110 sub-sta who have oleted their gradua-tio were rooted to lerial adre uder seial hael rootio roess. This aart, durig the year 2008-09, roessesor iter-sale rootios o oers were udertake or all sales o oers (both aistrea & Seialist category) adaordigly, 466 aistrea oers ad 181 Seialists category oers were rooted ro oe sale to aother. Theelevatio roess ro lower sale wages to higher sale wages withi saai-karaharis (sub-sta adre) has bee held or 57vaaies.

Further, resh rootio roesses ro Sale I to II (maistrea) ad ro Sale II to III (maistrea) were held or 1056vaaies ad 420 vaaies, resetively ad the al results alog with the ostigs o the seleted adidates will be issuedi Aril 2009. proess or rootio ro Steo lerks to Steo Oer or 104 vaaies is uderway ad is sheduled to beoleted shortly.

O reruitet rot, lookig ito the growig eed or seurity, the Bak has reruited aroud 150 Ared Guards ad ostedthe i high-risk areas. Further, reruitet roess o Saai Karaharies or 252 osts (190 i 1/3rd sale wages ad 61 iosolidated wages) was iitiated durig the year 2008-09. cosiderig the ersetive la as draw u by the Bak o ITexasio ad ileetatio o cetralised Bakig Solutios (cBS), urther requireet or tehial/seialized skills i IThas bee assessed ad aordigly, a resh roess or diret reruitet o 200 IT oers i .e. 150 oers i Sale II & 50 oersi Sale III has bee iitiated.

Durig the year uder review, the Board o Diretors have aorded satio or 2800 lerial osts (i two sells) to be lled ithrough iteral rootio or 1050 osts ad through diret reruitet or 1750 osts. Aordigly, i the rst hase, Bakhas iitiated a reruitet roess or 850 lerial osts through IBpS. The said roess has reeived a assive resose ro


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ore tha 3 la asirats ad the writte test or the eligible adidates is sheduled or 24th may, 2009. Durig the year, theBoard o Diretors have also aorded its aroval or diret reruitet o 800 probatioary Oers, 500 Rural DeveloetOers ad 70 Law Oers. This aart, osiderig the eed to suleet the exeriees with the ew ad oteorarybakig kowledge i order to obat the growig oetitio i the Bakig Setor. Board o Diretors have aorded its i-riile aroval to ebark uo caus reruitet o oers to utio i strategi ad key areas. These roess will beiitiated ad oleted durig the ext sal.

SUCCESSioN PLANNiNG ENDEAVoURS

Oe o the oteworthy ad ioeerig HR iitiative take by the Bak durig the year 2008-09 was the diret reruitet ooers i Seior maageet adre ad the level juig rootios to Sale IV & V ositios. A roess or Diret Reruiteto 70 Seior maageet ositios has bee iitiated i whih the iteral oers have also bee give a oortuity toartiiate with relaxatio i age. However, i the said roess whih oluded durig the year 2008-09, oly 19 adidates(8 i Sale IV & 11 i Sale V) ould be seleted all o who iidetally are iteral oers.

I its quest to ehae the syhologial otivatio aog the oers, the Bak iitiated a iteral roess by way o LevelJuig prootio to ll i the osts o Sale IV & V whih reaied ulled i the above reruitet roess. This was oeo the rst ever ileeted HR iitiative i ay ubli setor bak. Havig regard to the growig asiratios o oers toshoulder higher resosibilities ad also lookig to the reset age role o the oers, the aageet has bee roative

eough to relax the age beyod the oe resribed or the Diret Reruitet proess. I the said iovative rootio exerise,18 Sale II & III oers who were rooted to Sale IV ositio ad 12 Sale III ad Sale IV oers who were rooted to SaleV ositio, beeted iesely i their areer grah.

iMPLEMENTATioN oF RESERVATioN PoLiCY

The Bak has bee ileetig the guidelies / istrutios reeived ro Govt. o Idia / Idia Baks Assoiatio oReservatio poliy ad oessios ad relaxatios are exteded to Scs/STs/OBcs/pWDs as adissible i the Reservatio poliy. Iorder to eetively ileet the Reservatio poliy, oered sta have bee oiated to seial traiig rograe o-duted by outside ageies like Istitute o publi Adiistratio, Bagaluru. Durig the year, Dr. Buta Sigh, Hoble chaira& pro. n.m. Kable, Vie chaira o the natioal coissio or Sheduled castes, new Delhi alogwith other ebers ocoissio aid visit to Bak or o the sot review o ileetatio o Reservatio poliy i the Bak ad exressed theirsatisatio over the status o ileetatio o Reservatio poliy by the Bak.

bUSiNESS MEETiNGS WiTH REPRESENTATiVES UNioNS / ASSoCiATioNS

Durig the year uder review, exlusive eetig was held o 28th Jue 2008 at cororate Oe level with ajor Uios /Assoiatios to disuss solely o the strategies o busiess develoet. Siilar suh eetigs were held thereater with theZoal / State uits o the uios at all Zoal Head Quarters as well. Durig these eetigs, the aageet exlaied the Baksositio o busiess rot ad soliited the views / suggestios ro the reresetatives or busiess strategies, besides seekigtheir o-oeratio i busiess develoet edeavours o the aageet.

STAFF WELFARE SCHEMES

Welare o Sta ad their ailies otiues to be the oitted edeavour o the aageet ad this is always ket o theto o the HR ageda o the Bak. Aordigly, durig the year, a aout o Rs. 12 rore has bee aortioed or exedigtowards various Sta Welare Shees.

iNDUSTRiAL RELATioNS

The Idustrial Relatios durig the year reaied geerally ordial.

AWARDS & ACCoLADES

The Bak reeived Best Eduatio Loa provider ad Ruer-u award or Best Hoe Loa provider by the Outlookmoey nDTV prot Award 2008

The Bak raked First aogst all baassurae arters o LIc

The Bak was oerred with the First Award uder natioal Awards or exellee i mSE Ledig by the Govt oIdia.

CoRPoRATE CoMMUNiCATioNS

Durig the year, the Bak has take various stes or reatig otiuous awareess about our brad, servies ad rodutsthrough rit, eletroi ad outdoor edia throughout the outry. The Bak also artiiated i various airs ad exhibitiosor oularizatio o our various roduts ad servies by dislayig the sae at stalls. The Bak also sosored various oer-ees o atioal ad iteratioal iortae ad sorts evets.


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ms perizaad Zorabia Irai, the well-kow Fil ad TV atress was assoiated as Brad Abassador o the Bak to ehaeour brad reall. The Bak has adoted a ew sigage i vibrat Blue ad Red, whih deits the dyais ad the reset dayrole. The blue olour deotes eae ad stability ad Red or vibrat thoughts ad ositive atio. Together they atly brigorth the orward-lookig aroah ad ew age outlook o oe o Idias ost histori bak.

bANKS SUbSiDiARiES AND JoiNT VENTURES

CENTbANK HoME FiNANCE LiMiTED

The coay has reorded a oeratig rot o Rs 5.03 rore, net prot ater Tax o Rs 3.16 rore durig the year ad reduedthe quatu o no-perorig Assets to Rs 44.64 rore ro Rs 50.77 rore as at the ed o the revious year. The oayhas ahieved caital Adequay Ratio o 21.07 eret as agaist the stiulated or o 12 eret. The loa ortolio o thecHFL at the ed o the year was Rs 257.88 rore. Fresh disburseets o Rs 21.54 rore were ade durig the year. The o-ays earig er share stood at Rs 15.79 at the ed o the year. The oay is goig i or restruturig ad revaig iorder to ake it vibrat, arket orieted ad roative to the arket requireets.

CENTbANK FiNANCiAL & CUSToDiAL SERViCES LTD

The coay ade a net prot o Rs 21.67 Las durig the year eded marh 31.2009 as agaist a net prot o Rs 21.05 Lasdurig the revious year.

iNDo ZAMbiA bANK LTD

The Baks joit veture i Zabia is rooted joitly by Govt o Zabia ad three Idia baks viz., cetral Bak o Idia,Bak o Baroda ad Bak o Idia. Eah Idia bak is holdig 20 eret equity ad the Govt o Reubli o Zabia holds thebalae 40 eret equity. The bak otiues to eror well uder all araeters. The reset maagig Diretor o the IdoZabia Bak Ltd is mr S.R.Shukla ro cetral Bak o Idia.

REGioNAL RURAL bANKS (RRbs)

The Bak had 11 sosored RRBs as o 31.03.2008 overig 55 distrits i 7 states with a etwork o 1719 brahes. Durigthe year 2008-09 Goveret o Idia, vide otiatio dated 08.04.2008 aalgaated our 3 RRBs aely Satura KshetriyaGrai Bak, chabal Gwalior Kshetriya Grai Bak ad Ratla madsaur Kshetriya Grai Bak i madhya pradesh to ora ew etity with the ae as Satura narada Kshetriya Grai Bak. Siilarly, Goveret o Idia vide otiatio dated01.05.2008 aalgaated 2 RRBs aely Uttar Bihar Kshetriya Grai Bak ad Kosi Kshetriya Grai Bak i Bihar to or a

ew etity with the ae Uttar Bihar Grai Bak.Thus the uber o our sosored RRBs redued to 8 as o 31.03.2009. The uulative erorae o all the 8 RRBs uderajor araeters as o 31.03.2009 is as uder:-

A. branch Expansn - durig the year 2008-09 the RRBs have oeed 7 ew brahes raisig the total uber o brahesto 1726 as o 31.03.2009.

B. Depsts - The deosits o RRBs ireased ro Rs.10186.93 rores as o 31.03.08 to Rs.12575.44 rores as o 31.03.09,registerig a growth o 23.35 %.

c. Advances - The advaes o RRBs have showed slight delie ro Rs.4967.79 rores as o 31.03.08 to Rs.4934.19 roresas o 31.03.09.

D. Prftalty - The RRBs have eared rot o Rs.196.52 rores durig the year 2008-09 agaist the revious years roto Rs.99.08 rores.

boARD oF DiRECToRS

At the begiig o the year, there were ourtee Diretors o the Board o the Bak aely ms H.A. Daruwalla, Shri K.Subbaraa,Shri Albert Tauro, St. Viita Kuar (Goveret o Idia noiee), Shri m.K.Bhattaharya (RBI oiee), Shri m.S.Johar (partTie no-oial Diretor), Shri Kaal Faruqui, major (Retd.) Ved prakash, Shri Harish chadhok, Shri Roesh Sabhrwal, Shrin.K.pareek, Shri c.m.puri, St. Satya Bahi ad ms. Idu Sigh pawar.

ms. H.A.Daruwalla retired o 31.12.2008 due to her suerauatio, Shri Albert Tauro, Exeutive Diretor retired ro theBoard o our Bak o 02.08.2008 due to his elevatio as chaira ad maagig Diretor o Vijaya Bak. Shri K.Subbaraa,Exeutive Diretor retired o 30.09.2008 due to his suerauatio. Shri Kaal Faruqui retired o 15.09.2008, major (Retd.)Ved prakash retired o 05.10.2008, St. Satya Bahi retired o 09.11.2008, Shri Harish chadhok retired o 09.11.2008, ShriRoesh Sabharwal retired o 02.03.2009 due to exiry o his ter o 3 years.

Shri S.Sridhar has bee aoited as chaira ad maagig Diretor w.e.. 02.03.2009. Shri Raath pradee has beeaoited as Exeutive Diretor w.e.. 19.12.2008. Dr. Shashak Saksea has bee aoited as Goveret o Idia noieeDiretor i lae o St. Viita Kuar w.e.. 10.06.2008. Shri Brijlal Kshatriya ad pro. n. Balakrisha have bee eleted asShareholders Diretors o our Baks Board o 20.11.2008.


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At reset the total stregth o the Board o Diretors is te aely Shri S.Sridhar, Shri Raath pradee, Shri ShashakSaksea, Shri m.K.Bhattaharya, Shri m.S.Johar, mrs. Idu Sigh pawar, Shri n.K.pareek, Shri c.m.puri, Shri Brijlal Kshatriya adpro. n.Balakrisha.

Durig the year, 17 eetigs o the Board, 25 eetigs o the maageet coittee o the Board, 7 eetigs o the Auditcoittee o the Board ad 4 eetigs o the Shareholders/Ivestors Grievaes coittee o the Board were held.

FUTURE RoADMAP

The Bak has ebarked o a ew Visio ad Oeratio, titled nAVcHETnA to iulate awareess ad vitality towards ahieve-et o orgaizatioal goals. Soe o the iediate goals are as er the ollowig :

Fous o prot axiizatio

Ahievig Total Busiess Growth o over 25 eret with deosit Growth o 24 eret ad credit Growth o 27 eret

Thrust o cASA ad nRI deosits

Ehasis o Asset Quality ad brigig dow Gross npA to 1.3 eret

Thrust o SmE, chael, Vedor ad Suly-chai aig

Iteratioal Foray

new custoer aquisitio

Large cororate Vertial

cetralised proessig or retail redit ad other vertials

Orgaisatioal Restruturig

Busiess proess Re-egieerig

1000 additioal brahes to be brought uder cBS so as to over 60 eret o total brahes ad 90 eret o busiess

Ahievig Fiaial Ilusio through use o tehology

ACKNoWLEDGEMENT

The Board o Diretors laes o reord its gratitude to the Goveret o Idia, the Reserve Bak o Idia ad the Seurities &Exhage Board o Idia or their valuable guidae ad suort. We also wish to akowledge with gratitude ustited suortad aith o illios o the Baks ustoers ad shareholders. The erorae o the Bak ould ot have bee ahieved but

or the dediated servies rovided by ebers o the sta.

For ad o behal o Board o Diretors.

plae : mubai S Sridhar

Date : Jue 24, 2009 cHAIRmAn & mAnAGInG DIREcTOR


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Crprate Gvernance

banks Phlsphy Crprate Gvernance

The thrust o the cororate Goverae o the Bak is to ehae shareholders value by ursuig ethial raties i theodut o its busiess ad aitaiig high stadard o dislosure ad trasarey. The Bak has adoted best raties adstadards o goverae are oitored by various coittees o the Board. The Board, the Exeutives ad other utioarieshave distitly dearated roles i ahievig the cororate goals iroved erorae ad ehaed shareholders value.

bard Drectrs

The Bak is ostituted uder the Bakig coaies (Aquisitio ad Traser o Udertakigs) At, 1970 as aeded rotie to tie. The geeral sueritedee, diretio ad aageet o the aairs ad busiess o the Bak is vested i theBoard o Diretors resided over by the chaira ad maagig Diretor.The chaira ad maagig Diretor ad the Exeutive Diretors are aoited by the cetral Goveret. Durig the yearuder review i.e. 2008-09, the oositio o the Board was as uder:

mr. S. Sridhar

(Fro 02.03.2009)

chaira ad maagig Diretor

ms. H.A. Daruwalla(Retired o 31.12.2008)

chairerso ad maagig Diretor

Shri Raath pradee(Fro 19.12.2008)

Exeutive Diretor

Shri K. Subbaraa(Retired o 30.09.2008)

Exeutive Diretor

Shri Albert Tauro(Elavated as cmD o Vijaya Bak ro02.08.2008)

Exeutive Diretor

Shri Shashak Saksea(Fro 06.06.2008)

Goveret o Idia noiee Diretor

St Viita Kuar

(uto 05.06.2008)

Goveret o Idia noiee Diretor

Shri m.K. Bhattaharya(Fro 27.02.2007)

RBI noiee Diretor

Shri m.S. Johar(Fro 02.01.2008)

part Tie no-oial Diretor uder chartered Aoutat ategory

mrs. Idu Sigh pawar(Fro 02.01.2007)

part Tie no-oial Diretor

Shri n.K. pareek(Fro 10.08.2006)

Oer Eloyee Diretor

Shri c.m. puri(Fro 05.09.2003)

Worke Eloyee Diretor

Shri Brijlal Kshatriya(Fro 20.11.2008)

Shareholder Diretor

pro. n. Balakrisha(Fro 20.11.2008)

Shareholder Diretor

major Ved prakash(Uto 05.10.2008)


Shri Kaal Faruqui(Uto 15.09.2008)


St. Satya Bahi(Uto 09.11.2008)


Shri Harish chadhok(Uto 09.11.2008)


Shri Roesh Sabharwal(Uto 02.03.2009)



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All diretors, other tha the chaira & maagig Diretor ad the Exeutive Diretors, are part Tie no-Exeutive Diretorso the Board.

bre Prfle the New Drectrs r re-appnted

Shr S. Srdhar, Charman & maagig Diretor, aged 58 years, was aoited as the chaira ad maagig Diretor o the Bak o02.03.2009. He is a Baker with about 35 years roessioal exeriee i oerial ad develoet bakig, His ai is totrasor cetral Bak o Idia ito a teho-savy Bak, a arket-resosive, ustoer orieted, exertise lade, roble-solvig istitutio.

He has eduated at Idia Istitute o Tehology, Delhi ad at Jaaalal Bajaj Istitute o maageet Studies, mubai. He isalso a certied Assoiate o Idia Istitute o Bakers. He was the Lord Aldigto Bakig Researh Fellow or the year 1984,workig i UK ad Frae. He has bee a ivited seaker/ aelist at atioal ad iteratioal coerees iludig UncTAS,Un Habitat, UnEScAp, OEcD.

Shri S. Sridhar has bee the chaira & maagig Diretor o natioal Housig Bak (nHB), Idia, sie Aril 2006, a ositio,whih he otiues to hold. prior to joiig nHB, he was Exeutive Diretor ad chie Oeratig Oer o Exi Bak o Idia orabout 5 years ad worked i other aaities or about 16 years. He had earlier worked i State Bak o Idia or about 12 years.

Shri S. Sridhar is a diretor o (1) natioal Housig Bak (2) cetbak Fiaial & custodial Servies Ltd ad (3) Ido ZabiaBak Ltd., Zabia.

Shr Ramnath Pradeep, Exeutive Diretor, aged 58, was aoited as Exeutive Diretor o the Bak o 19.12.2008.He has ostgraduated i Eoois ad LL.B. Ater oletig his LL.B., he joied madhya pradesh Fiaial cororatioas Law Oer. He joied Dea Bak i 1981 or a short eriod, thereater joied OnGc. He agai joied Dea Bak as aSeior maager (Legal). Durig his log teure, he has held various assigets, iludig Legal, publiity, marketig asDeuty Geeral maager ad Treasury maageet, ALm, Reovery, I.T., Ileetatio o core Bakig Solutios, cardmaageet Deartet et. as Geeral maager.. He was also deuted to State Bak o Idia as chie Vigilae Oer.

Shri Raath pradee is a diretor o (1) cet Bak Hoe Fiae Ltd (2) cetbak Fiaial & custodial Servies Ltd, ad (3)Irastruture Leasig & Fiaial Servies Ltd.

Dr Shashank Saksena, aged 46 years, was oiated by the GoI to our Board o Jue 06, 2008. He has asters degrees i Eoois as well

as i Siee. He is a Bahelor o Law ad havig Dotorate i philosohy. He is resetly Diretor, Dea rt et o Fi a ia lServies, miistry o Fiae, Goveret o Idia.

Shr brjlal Kshatrya, aged 73 years was eleted as shareholder diretor o our Board o 20.11.2008. He has a bahelors degreei metallurgial Egieerig ro Baaras Hidu Uiversity. Shri Kshatria, orer maagig Diretor o Steel Authority o IdiaLtd., is seialised i maageet o Steel plats. He had extesive traiig i Works ad HR utios i Idia ad abroad.

Shri Kshatriya has reeived ay awards iludig the Rajiv Gadhi Exellee Award ro Siroai Istitute - 1993, motherIdia Iteratioal Award ro nRI World - Deeber 1993, Glory o Idia Iteratioal Award ro Iteratioal FriedshiSoiety o Idia - Deeber 1993.

Pr. N. balakrshnan, aged 58 years was eleted as shareholder diretor o our Board o 20.11.2008. He is a sietist ohigh iteratioal reute. pro. Balakrisha has reeived his B.E.(Hos) i Eletrois & couiatio ro the Uiversity omadras i 1972 ad phD ro the Idia Istitute o Siee i 1979. He is urretly the Assoiate Diretor o the Idia Istitute

o Siee ad a proessor at the Deartet o Aerosae Egieerig ad at the Suerouter Eduatio ad Researhcetre ad the natioal cetre or Siee Ioratio at the Idia Istitute o Siee.

pro. Balakrisha is well deorated with ay restigious awards iludig the padashree by presidet o Idia i 2002, HoiJ.Bhabha Award or alied Siee i 2004, J.c.Bose natioal Fellowshi i 2007, et.

Detals ther Drectrs

Shr M.K. bhattacharya, aged 65 years was aoited as the RBI oiee Diretor o our Board o 27.02.2007. He has aasters degree i coere. He is also a certied Assoiate o Idia Istitute o Bakers. He has worked i various deartetso the RBI ad was o the board o other pSUs.

Shr M.S. Jhar, aged 53 years was aoited as the Diretor uder chartered Aoutat ategory o 02.01.2008. He has abahelors degree i Arts ad he is a qualied chartered Aoutat.


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Ms. indu Sngh Pawar, aged 51 years was aoited as a art tie o-oial Diretor o the Bak o 02.01.2007. She isBahelor o Siee ad Bahelor o Laws.

Shr N.K. Pareek, aged 59 years, was aoited as the Oer Eloyee Diretor o the Bak by the Goveret o Idia o10.08.2006. He has a masters degree i oere, Bahelor degree i Law. He is also a certied Assoiate o Idia Istitute oBakers. He is the residet o the All Idia Bak Oi ers coederat io, Ra jastha, Geeral Sere tary o cetral BakOiers Assoiatio, Rajastha, presidet o All Idia cetral Bak Oiers Federatio, ad Dy. Geeral Seretaryo All Idia Bak Oiers coederatio.

Shr C.M. Pur, aged 58 years, was aoited as the Worke Eloyee Diretor o the Bak by the Goveret o Idia o05.09.2003, ad reresets worke eloyees o the Bak. He has a bahelors degree i Siee. He is also a Juior Assoiateo Idia Istitute o Bakers. He is the presidet o All Idia cetral Bak Eloyees Federatio. He is also a eber o thegeeral ouil o the All Idia Bak Eloyees Assoiatio.

oTHER PARTiCULARS oF DiRECToRS

Name DrectrsDate Appnt-ment

as Drectr

Area

Expertse

Memer Cmmttees

bard Central bank inda

Drectrshp ther

Cmpanes

Memer Charman

Shri S. Sridhar 02.03.2009 Bakig mcB,Rmc,LVFc,cSc,ITp.SIGc

mcB,Rmc,LVFc,cSc,ITp.

i) chaira, natioal HousigBakii) chaira, cet Bak Fiaial& custodial Servies Ltd.iii) Diretor,Ido Zabia Bak Ltd.

Shri Raathpradee

19.12.2008 Bakig mcB,AcB,Rmc,LVFc,cSc,ITp,SIGc

nil i) Diretor,cet Bak Hoe Fiae Ltd.,ii) Diretor,cet Bak Fiaial & custodialServies Ltd.iii) Diretor,Irastruture Leasig &Fiaial Servies Ltd.

Dr Shashak Saksea 10.06.2008 Eooist AcB,Rmc,LVFc

Rc IIBI,DIcGS

Shri m.K.Bhattaharya

27.02.2007 Bakig mcB,AcB,Rmc,cScRc

nil nil

Shri m.S. Johar 02.01.2008 Aoutay mcB,

AcB,cSc,SIGc

AcB,

SIGc

-

mrs. Idu Sighpawar

02.01.2007 Soial Workerad Busiess

LVFc,ITpAcB,Rc

nil nil

Shri n.K. pareek 10.08.2006 Bakig mcB nil nil

Shri c.m. puri 05.09.2003 Bakig ITp,Rmc

nil nil


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Shri Brijlal Kshatriya 20.11.2008 HuaResouresDeveloet

mc,LVFc,cSc,

ISGc

nil i) Eo-Teh maageetServies pvt. Ltd.ii) Saso Assoiatio (I)

pvt. Ltd.iii) Strategi HR Serviespvt. Ltd.

Shri n. Balakrisha 20.11.2008 IoratioTehology

Rmc,ITp

nil i) c-DOT Alatel Researhcetre pvt. Ltd.ii) Bharat EletroisLtd.

mc - maageet coittee o the BoardAcB - Audit coittee o the BoardRmc - Risk maageet coitteeLVFc - Large Value Fraud coitteecSc - custoer Servie coitteeITp - Ioratio Tehology projet i the Bak

SIGc - Shareholders/Ivestors Grievaes coitteeRc - Reueratio coittee

Remuneratn Drectrs:

The Diretors are aid sittig ees o Rs.5,000/- or attedig every eetig o the Board o Diretors ad Rs.2,500/- or atted-ig every eetig o various coittees o the Board, aart ro reiburseet o usual travellig ad haltig exeses.Sittig ees are ot aid to the chaira & maagig Diretor, Exeutive Diretors ad Diretors who are aoited by theGoveret o Idia.

Durig the aial year 2008-09, the ollowig aouts have bee aid to the maagig Diretors ad Exeutive Diretors astotal salary, allowaes ad erks:

Sr nae Ruees

1 Shri S Sridhar -

2 ms H.A. Daruwalla 15,63,663

3 Shri K. Subbaraa 8,62,930

4 Shri Albert Tauro 6,63,453

5 Shri Raath pradee 2,82,562

I additio to the above salary, allowaes ad erks, the Reueratio coittee o the Board aroved the ayet oerorae-liked ietive aoutig to Rs.7.00 La to ms H.A.Daruwalla, cmD, Rs.5.50 La to Shri K. Subbaraa, E.D. adRs.4.58 La to Shri Albert Tauro, E.D., i reset o the aial year 2007-08.

Durig the year uder review, the Bak has aid Rs.6,85,000 towards sittig ees or attedig Board meetigs ad Rs.4,10,000towards attedig the coittee meetigs o the Board, to the eligible Diretors.

Cnduct bard MeetngsDurig the year, 17 Board meetigs were held o the ollowig dates:

24.04.2008 08.05.2008 22.05.2008 18.06.2008 23.06.2008

30.07.2008 22.08.2008 06.09.2008 27.09.2008 25.10.2008

02.12.2008 23.12.2008 30.12.2008 28.01.2009 14.02.2009

07.03.2009 28.03.2009


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Details o attedae o the Diretors at the Board meetigs are:

nae o the DiretorAttedaeReorded

meetigs held durigtheir teure

period(Fro - To)

Whether atteded lastAGm o 31.07.2008

Shri S.Sridhar 02 02 02.03.2009 to31.03.2009

n.A.

ms H.A.Daruwalla 13 13 01.04.2008 to31.12.2008

YES

Shri Raath pradee 06 06 19.12.2008 to31.03.2009

n.A.

Shri K. Subbaraa 09 09 01.04.2008 to30.09.2008

YES

Shri Albert Tauro 05 06 10.04.2008 to02.08.2008

YES

Dr Shashak Saksea 11 14 06.06.2008 to31.03.2009

YES

St Viita Kuar 03 03 01.04.2008 to05.06.2008

n.A.

Shri m.K. Bhattaharya 17 17 01.04.2008 to31.03.2009

nO

Shri m.S. Johar 17 17 01.04.2008 to31.03.2009

YES

mrs. Idu Sigh pawar 17 17 01.04.2008 to31.03.2009

YES

2009 recritment policy

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